19341221_Minutes.pdf

3975

A meeting of the Executive Committee of the Federal eserve

13°'"was held in Washington on Friday, December 21, 1934, at 3:00

p.m.

PRESENT: Er. Eccles, GovernorMr. HamlinMr. Szymczak

1,:r. Merrill, SecretaryMr. Bethea, Assistant SecretaryMr. Carpenter, Assistant Secretary

The Committee acted upon the following matters:

Letter dated December 20, 1934, from Mr. Sproul, Secretaryor _

"44 Federal Reserve Bank of New York, advising that, at a meeting

of the board of directors on that date, no change was made in thebEttic?

s existing schedule of rates of discount and purchase.

Without objection, noted with approval.

Letter dated December 20, 1934, approved by five members ofthe

Board, to lir. Case, Federal Reserve Agent at the Federal Reserve

1384/1c of .kiew York, reading as follows:

11-4eference is made to your letters of September 11 and

October 17, 1934, submitting reports of indebtedness of memberseth staff of your department.

t, 'The report submitted by Mr. Wm. H. Lee, examiner, statest1114t he is indebted to the City Bank Club Investment Fund int48 amount of 039.93 on a loan 'grr_nted as part of organiza-IZ°4 program to assist in holding National City Bank stock'.o i8 aSSUMCd that you have satisfied yourself that the existenceas this indebtedness will have no adverse effect on his serviceel: examiner. The Board feels that if Mr. Lee is holding

therth:r mployees in your department Who make examinationsestock ofthe Lational City Bank or if he or any of

Or 113"ist in the examination of banks are holding obligationseho 41111zinc. institutions, their subsidiaries ar affiliates, theytor11:41 dispose of such Obligations as soon as it is possible

'hem to do so without resulting in undue hardship to them.

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

12/21/34 -2-

3976

"It is noted from your letter of September 27, 1934, thatthe mortgage on the home of -1,„t-. Harold F. Chapin in Detroit,Previously held by the Guardian National Bank aC Commerce, De-troit, Lichigan, has been transferred to the Home Owners' LoanCorporation, and from your letter of September 19, 1934, that14r. Charles R. Jug, who reported that he was a trustee of thePark Building and Loan Association, Ridgefield Park, New Jersey,resigned that position, effective September 13, 1934.

"In connection with the matter of indebtedness incurredby members of your staff, there is attached a letter which isbelng addressed to all Federal reserve agents today outlininga procedure for the reporting of such indebtedness to the Loardsemi-annually."

Approved, together with a letter, also datedDecember 20, 1964, and approved by five members ofthe board, to the Federal reserve agents at allFederal reserve banks, reading as follows:

"The Board's letter of April 29, 1933, X-7425, on the sub-ject of indebtedness of officers and employees, stated thatthere should be a prompt report to the Board of any indebtednesscf the kind referred to in the letter incurred by the Federaleserve agent or any member of his staff after July 1, 1933,

alid such report should contain information similar to thatcalled for in the Board's letter with respect to indebtednessoUtstanding on that date.

It was suggested by the board in correspondence with somethe Fed Tal reserve agents durin- the past year that they

ePort to the board, as incurred, indebtedness created by men-of the staff of the agent's department and that a report

submitted as of January 1 and July 1 of each year withegard to the progress being made in the liquidation of the'fldebedness previously reported.

it 'Further consideration has been given to this natter, anda 7411 be sufficient for the Board's purposes if in the futuree rePort is received from you as of January 1 and July 1 of!1.eh Year giving the information requested in the second para-T."Th of the Board's letter of April 29, 1933, regarding thetrebtedness incurred by the Federal reserve agent and the

cur. of his staff during the preceding six months (excluding

; rent bills for ordinary personal or household expenses buth "Ials-; other indebtedness incurred during the six months'veri A

%C31), and containing a statement, in connection with the

Sting indebtedness of each individual, of the program forif liquidation of such indebtedness. It will be appreciatedjulYou will arrange to submit reports as of January 1 and

Y 1 of each year to the Board in accordance with this


(I 12/21/3,:,

3'977

-3-

4PrOCedure•

.e cony of the Board's letter of epril 29, 1233, is at-tached."

Letter dated December 20, 1934, approved by three members

of the Board, to 1.x. iloxton, Federal Reserve Aeont at the Federal Re-

serve Bankeichmond, reading as follows:

"eeference is made to your letter of December 10, 1934,transmittin- the request of the 'Citizens Bank and Trust Com-PallV, Concord, 'l'orth Carolina, for an extensio)eof time71ithin er,lich the bank may comply with the provisions of mem-bership condition numbered 22, which provides that within sixm°11the from the date of its admission to membership such bankShould require the removal from its bankine quarters ef the'jlaileine and Loan Association located therein.

is noted that the bank accomplished its membership on-evereper 17, 1933, and that the Board subsequently granted itextension of time of six months within which it might comply

witn .:the provisions of the condition.In view of all the circumstances in the case and yourre0 ommendation, the Board extends to Lay 17, 1235, the timeleItich the Citizens Bank and Trust Liompany may comply

t41 the provisions of membership condition numbered 22, andis requested that you advise the bank accordingly. Theional extension of time is granted with the expectation

1:lat compliance -eith the condition will be effected within the'Lime

allotted."

Approved.

Letter dated December 20, 1934, approved by three members

lO

BarilZ of

to hr. Case, Federal Reserve Agent at the 1,edera1 he-

new York, readine as eollows:

tr "Reference is made to your letter of December 12, 1934,5.rknsmittinr; the request of the 'Lincoln-Itlliance Dank and .01,11 t Cempanv', Rochester, hew York, for a further modification

the condition prescribed by the Comptroller of the Currencyeste nection with the bank's application for permission to

elish a branch at Hewark, Lew York.,(41 iiovemeor 30, 1934, you were advised that the Comptrol-ler 0, .bece ; the Currency approved the extension of time until

ilper 31, 1934, within which the bank could effect the


3978

12/21/34 -4-

'elimination of all depreciation in stocks, defaulted bondsand securities other than those in the four highest grades.

"Accordinr to the information submitted, the bank's in-vestment account on December 3, 1934, showed depreciation of9997,412 before applying unallocated investment reserves of4271,772 and such depreciation included 4742,212 of deprecia-tlon on stocks. It is noted that the bank desires permissionto eliminate 4250,000 of depreciation on stocks at this timeand to defer any further write-off on depreciation of stocksuntil July 1, 1935., "Az you know, the Board has repeatedly stated that it be-eves that member banks should charge off or otherwise

eliminate all estimated losses and at least all depreciationin stocks, defaulted bonds and securities other than those inthe four highest grades and, regardless of the condition pre-scribed by the Comptroller, the Board feels that the Lincoln-1iance Bank and Trust Company should conform to this policy.

tor, eover, it is noted that the bank's investment in stocks has°ea carried at a value substantially in excess of the marketvalue thereof for several years.

"In the circumstances, the Board is unwilling to rocom-

rid any further modification of the condition prescribed by4.1.16 Comptroller of the Currency in connection with the applica-'10n of the Lincoln-Alliance Bank and Trust Company for per-

Zic4sio11 to establish a branch at liewark and it is requestedhat"You advise the bank accordingly.t, Please keep the Board advised as to the manner in which:Le bank complies with the condition prescribed by the Comp-troller of the Currency."

Approved.

Letter dated December 20, 1934, approved by three membersO

the

-, reading as follows:

Board, to the "First National Bank of Waterville", Waterville,

"The Federal Reserve Board has given consideration toY:1 1. application for permission to exercise fiduciary powers,8,u grants you authority to act, when not in contravention of,.'1 () or local law, as trustee, executor, administrator,;!glstrar of stocks and bonds, guardian of estates, assignee,frelver, committee of estates of lunatics, or in any otheroi,lcuelary capacity in which State banks, trust companies orc'er corporations which COMB into competition with national8'41c81,are permitted to act under the lams of the State of Llaine.

This letter will be your authority to exercise the


12/21/34 -5_

3979

,Liauciary powers zranted by the Board. Aformal certificatecoverin such authorization will be forwarded to you in duecourse."

Ap-oroved.

Letter dated December 20, 1934, approved by two members of

tie Board, to L. O'Connor, Comptroller of the Currency, reading as

f0110VIS

"In accordance with your recommendation, the Federal Re-ierve Board approves a reduction in the common capital stockOf 1'Ihe First Lational Bank of kJarrollLonl, Carrollton, Lis-s°uri, from 0100,0,0 to ,-,50,000, pursuant to a plan whichPr°7ides that the bank's capital shall be increased by thesale of v25,000 of preferred stock to the Reconstruction'flaxIoe Corporation and that the released capital shall be

1430d in eliminatinc; a corresponding amount of substandard as-ets, all as set forth in your memorandum of December 14, 1534."

Approved.

Letter dated December 20, 1934, approved by two members ofthe t

to 1.x. O'Connor, ‘;omptroller of the Currency, readinrr, asfollows:

ftIn accordance with your recommendation, the Federal he-Board approves a reduction in the common capital stock

Qot "Ihe First iational Ban,: of holdenville', -oldenvillo,p;lahoma from i;75,000 to c50,000, pursuant to a plan whichearides that the Lank's catAtal shall be increased by the

01 b0,000 of preferred stock to the aeconstructionto-°21ce Corporation and that the released capital shall be used

e-iminato a corresponding amount of substandard assets, allot forth in your memorandum of December 14, 1934."

01, the ti

ti

Aeroved.

1e1 eEram dated December 20, 1934, approved by two members

oard, to L:r.

of earikLew York, stating that the Board has given considera-

11 to thaPpli cation of the "Franklin Capital Corporation",

Case, Federal iteserve 'went at the Federal Re-


f 12/21/34 -b-

3980

liewark, New Jersey, for a voting permit under the authority af sec-

5 144 of the Revised Statutes of the United States, as amended,

ing such arganization to vote the stock which it owns or con-

1:1'°18 in the "Franklin Vashington Trust Company", liewark, iu'ew Jersey,

axid has authorized the issuance of a limited permit to the applicant,

Oct to the following conditions:

"Prior to the issuance of the limited voting permit author-ized herein,

"(1) the Federal Reserve Agent shall satisfy himselfthat each of the subsidiary banks of the applicant hascharged off or otherwise eliminated, (a) all losses inloans and discounts, (b) all depreciation in stocks anddefaulted securities, (c) all depreciation in securitiesnot of the four highest grades as classified by a recognizedflvestment service organization regularly engaged in the bus-lness of rating or grading securities and (d) all herlosses; as shown by the latest available reports of examina-tlons by the appropriate supervisory authorities, exceptthat the charge-offs and eliminations required by (b) and(0) above may be based upon current appraisals of marketableSecurities satisfactory to the Federal Reserve Agent;

"(2) the Federal Reserve Agent shall satisfy himselfthat the applicant has substantially performed any agreementor agreements heretofore executed by it as a condition tothe issuance of a limited voting permit by the Federal Re-serve Board;

"(3) the Federal Reserve Agent and the Executive Commit-tee of the Federal reserve bank shall approve the issuanceOf such permit."

Ettkiur the followinr; purposes:

"To elect directors of such bank at the annual meeting ofsti'c reholders, or at any adjournments thereof, at any time prior

Tril 1, 1935, and to act thereat upon such matters of anature as are ordinarily acted upon at the annual meet-

of such bank."tel,„

the-g1'0111 also authorized the agent to have prepared by counsel

ederal reserve bank, and to issue to the Franklin CapitalCorDorat.

1°11, a limited voting permit in accordance mith the telegram


3981

12/21/34 -7-

',ten the conditions prescrilied therein have been complied with.

Approved.

Telegram dated December 20, 1934, approved by members

crthe Board, to Lr. Fletcher, Actin:_, Federal Reserve Asent at the

l'ederal Reserve Bank of Cleveland, statinp; that the board has given

c°11sideration to the application of "The Union Trust Company of

--urfr,h", Pittsburgh, Pennsylvania, for a voting permit under the

411t4rity of section 5144 of the Revised Statutes of the UnitedSi; t

ee' as amended, entitlinr, such organization to vote the stock,

" owns or controls in the folio-A. 11g banks:

ihe Lellon 1:ationa1 Bank of rittsburgh", Pittsburh, Pennsyl-ft

vania,he Farmers Deposit 1.ational Lank of Pittsburgh", Pittsbur7h,

" :Pennsylvania,eltY Deposit bank and Trust Company of zlItsburgh", iittsburr:;h,

i'ennsylvania,

has aulhorized the issuance f e limited permit to the applicant,

l'Ibjeet to the followin conditions:

4lati, "(1) Prior to the issuance of the limited voting permit,orized herein,

"(1) the Fedural Reserve Agent shall sa_isfy himselfthat each of the subsidiary banks of the applicant hascharged off or otherwise eliminated, (a) all losses in;°ans and discounts, (b) all depreciation in stocks anduefaulted securities, (c) all depreciation in securities not?f the four highest grades as classified by a recocnizedflvectment service ar;anization relarly engaged in the

;11.1siness of mIting or -,rading securities and (d) all other

jsses; as shown by the latest available reports of examina-

jchs by the appropriate supervisory authorities, except(nalt the charge-offs and eliminations required by (b) and

ji above may be based upon current appraisals of marketable°curities satisfactory to the Federal Reserve Agent;

(2) the l'ederal Reserve k;erit shall s:tisfy himselfthat the applicant has substantially performed any agreement

Etrld


12/21/34

441

3982mmo040.

Itor agreements heretofore executed by it as a condition tothe issuance of a limited voting permit by the Federal ,Ae-serve Board;

"(3) the Federal Reserve Agent and the Executive Com-mittee of the Federal reserve bank shall approve the issuanceof such permit.

n(2,) Prior to the issuance of the limited voting permitauthorized herein, you shall satisfy yourself that the appli-cant has charged off or otherwise eliminated, (a) all losses inO0 and and discounts, (b) all depreciation in stocks and de-

faulted securities, (c) all depreciation in securities not ofthe four highest grades as classified by a recognized investmentservice organization regularly engaged in the business of rating°r gradin,, securities, and (d) all other losses; as shown bythe latest available report of examination by the appropriatesUpervisory authorities."

for the follominc7 purposes:

"To elect directors of such banks at the respective annual

T?etincs of shareholders or at any adjournments thereof at any,1111e prior to April 15, 1935, and to act thereat upon such mat-ers of a routine nature as are ordinarily acted upon at thereePective annual meetings of such banks."

1110 te -cgrtm also authorized Er. Fletcher to have prepared by counsel

tothe Federal reserve bank, and to issue to The Union Trust Company

?ittsburgh, a limited voting permit in accordance with the tele-

444/ /1then the conditions prescribed therein

Anproved.

Telegram dated December 20, 1934, approved by two members of

i3434rd, to Er. Newton,

470 Bank of Atlanta,

t0 the aPPlication of

th,

PloridR, for

a voting

Federal Reserve

stating that the

have been complied .with.

Agent

Board

at the Federal

has given consideration

the "Atlantic Trust Company", Jacksonville,

p9rmit under the authority of section 5144 of

t110 47ised Statutes of

41kization to vote the

the United States,

stock which it

as amended, entitling such

owns or controls in the


12/21/34 -9 -

f°110wing banks:

3983

• "First Atlantic hational Dank of Daytona Beachl Daytona Beach,Florida,

ihe First Lational Dank of Gainesville", Gainesville, Florida.the Palatka Atlantic hational Bank", Palatka, Florida,the 4'anford Atlantic 1.ational Dank", Sanford, il'lorida,west Palm Leach Atlantic Rational Bank", Tiest Palm Beach,Florida,

441has authorized the issuance of a limited permit to the applicant,

Wbject to the following conditions:

"(1) Prior to the issuance of the limited votins permitauthorized herein,

"(1) the Federal Reserve Agent shall satisfy himselfthat each of the subsidiary banks of the applicant hasCharged off or otherwise eliminated, (a) all losses in loansand discounts, (b) all depreciation in stocks and defaultedsecurities, (c) all depreciation in securities not of thefour highest grades as classified by a recognized investmentservice organization regularly engaged in the business ofrating or grading securities and (d) all other losses; asshom by the latest available reports of examinations by theappropriate supervisory authorities, except that the charge-°ffs and eliminations required by (b) and (c) above may bebased upon current appraisals of marketable securitiessatisfactory to the Federal Reserve Agent;

"(2) the Federal Reserve Agent shall satisfy himselfthat the applicant has substantially performed any agreementor agreements heretofore executed by it as a condition tothe issuance of a limited voting permit by the Federal Ike-serve Board;

"(3) the Federal Reserve Agent and the Executive Commit-tee of the Federal reserve bank shall approve the issuanceof, such permit.

vot. i(2) Simultaneously with the issuance of the limitedAtilnr, permit authorized heroin there shall be issued to "ihepe;11:1t1e 1;ationol Bank of Jacksonville' the limited votingas euthorized in the AIXIGAR telegram bearing the same date

U.S telegram,"Etki for

the following purposes:

Illeet."(1) To elect directors of such banks at the annualttro 13-6.;s of shareholders, or at any adjournments thereof, atI Ilme prior to April 1, l'J3.5, and to act thereat upon such


I) 12/21/34 -10-

3984

,matters of a routine nature as are ordinarily acted upon atthe annual meetinf7s of such banks.

"(2) At any time prior to Apfil 30, 1935 to authorizethe issuance by 'The First -1\ational bank of Gainesville' ofcommon and/or preferred stock in accordance with a plan satis-factory to the Federal Reserve Agent at the Federal ReserveBank of Atlanta and approved by the Comptroller of the Currency,812 to make such amendments to the articles of associationend/or by-la= of such bank as shall be necessary for suchPurpose."

Ihetelegram also authorized the agent to have prepared by counsel

Iel't4e Federal reserve bank, and to issue to the Atlantic TrustCA'4111

--"q, a limited voting pernit in accordance with the telegram

Ilhen t he conditions prescribed therein have been complied with.

Approved.

In connection with the above, there was presented a second

teie0V11 dated December 20, 1934, approved by two members of the

441.di to Lir. Newton, Federal Reserve Agent at the Federal Reserve1114k or

Atlanta, stating that the Board has given consideration tothe

kpplication of "The Atlantic I:ational Bank of Jacksonville",

44elcso/lirille, Florida, for a voting permit under the authority of4tktioli 5144 of the Revised Statutes of the United States, as amended,

ettitlinc such organization to vote the stock which it owns or con-

0 followirg banks:

Atlantic Lational bank of Daytona Beach", Daytona beach,11,1:10rida.• First laitional Bank of Gainesville", Gainesville, Florida,11,r Palatka Atlantic National Bank", Palatka, Florida,• Zanford Atlantic Lational Bank", Sanford, Florida,

Palm beach Atlantic National Bank", Test Palm Beach,l bride.,

althorized the issuance of a limited permit to the applicant,


398512/21/34 -11-

subject to the following conditions:

fc'r t he follouing purposes:u(1 r ,

10 elect directors of such banks at the annual meet-title " shareholders, or at any adjournments thereof, at anyct Prior to April 1, 1935, and to act thereat uoon such matterskeelioutine

nature an are ordinarily acted upon at the annualg8 of such banks.ti(2) At any time prior to April 30, 1935, to authorize the

"(1) Prior to the issuence of the limited voting permitauthorized herein,

"(1) the Federal Reserve Agent shall satisfy himselfthat each of the subsidiary banks of the applicant hascharged off or otherwise eliminated, (a) all losses in loansand discounts, (b) all depreciation in stocks and defaultedsecurities, (c) all depreciation in securities not of thefour highest grades as classified by a recognized investmentservice organization regularly engaged in the business ofrating or grading securities and (d) all other losses; asshown by the latest available reports of examinations bythe appropriate supervisory authorities, except that thecharge-offs and eliminations required by (b) and (c) aboverraY be based upon current appraisals of marketable securitiessatisfactory to the Federal Reserve 4:ent;

"(2) the Federal Reserve Agent shall satisfy himselfthat the applicant has substantially performed any agree-Illent or agreements heretofore executed by it as a conditionto the issuance of a limited voting permit by the FederalReserve Board;

"(3) the Federal Reserve Agent and the Executive Commit-tee of the Federal reserve bank shall approve the issuanceofitsuch permit.

autl, (2) Prior to the issuance of the limited voting permithan'terized herein you shall satisfy yourself that applicant10._charged off or otherwise eliminated, (a) all losses in

fault and discounts, (b) all depreciation in stocks and de-

theed securities, (c) all depreciation in securities not of1. t'ur highest grades as classified by a recognized investment

or vlee organization regularly engaged in the business of ratinglatrr.".din securities, and (d) all other losses; as shown by theiner:' available report of examination by a national bank exam-

Simultaneously with the issuance of the limited,4ting permit authorized herein, there shall be issued totalltic Trust Company' the limited voting permit authorizedhe

Ai4CIGAR telegram bearing the same date as this telegram."


12/21/34 -12-

issuance by The First National Bank of Gainesville of coLailoneliciAr preferred stock in accordance with a plan satisfactoryto the Federal Reserve Agent at the Federal Reserve Bank ofAtlanta and approved by the Comptroller of the Currency, andto make such amendments to the articles of association and/orbY-laws of such bank as shall be necessary for such purpose."

The telecramalso authorized the agent to have prepared by counsel

3986

11°1' the Federal reserve bank, and to issue to The Atlantic National

134111c of Jacksonville, a limited votin permit in accordance with

the tele gram when the conditions prescribed therein have been corn-

with,

Approved.

Teleg ruin dated December 20, 1934, approved by two members

"he Board, to Mr. Wood, Federal Reserve Agent at the Federal Re-

46110 Bank of St. Louis,

'4°4 to the application of the

.14nThia, Tennessee, for a voting

tio4

stating that the Board has

"Bank of

permit

Commerce and

given considera-

Trust

under the authority

5144 of the Revised Statutes of the United States,

entitling such organization to vote the stock which it mins or con-

t1°-e in the "National Bank of

Company",

of sec-

Commerce

414Iessee, and has authorized thethe

4Pileant, subject to the following

as amended,

in Memphis", Memphis,

issuance of a limited permit to

conditions;

erior to the issuance of the limited voting permitorlzed herein,

"(1) the Federal Reserve Agent shall satisfy himselfthat each of the subsidiary banks of the applicant has.?harge d off or otherwise eliminated, (a) all losses in

and discounts, (b) all depreciation in stocks anddefaulted securities, (o) all depreciation in securities

of the four highest grades as classified by a recognizedliestment service organization regularly engaged in the


398712/21/34

"business of rating or grading securities and (d) all other

losses; as shown by the latest available reports of examina-

tions by the appropriate supervisory authorities, exceptthat the charge-offs and eliminations required by (b) and(o) above may be based upon current appraisals of marketable

securities satisfactory to the Federal Reserve Agent;

"(2) the Federal Reserve Agent shall satisfy himselfthat the applicant has substantially performed any agree-ment or agreements heretofore executed by it as a conditionto the issuance of a limited voting permit by the Federal Re-serve Board;

11(3) the Federal Reserve Agent and the Executive Com-mittee of the Federal reserve bank shall approve the issuanceOf such permit."(2) Prior to the issuance of the limited voting permit

authorized herein, you shall obtain assurances satisfactory to?jourself that applicant will deliver to you prior to Larch 1,1935, Exhibit L, F.R.B. Form P-3, executed by Lemphis AbstractCc°111PanY, Commerce Title Guaranty Company, Hull-Dobbs-Pricep°111PanY, and Thompson-hatz Lumber Company, and Exhibit N, F.R.B.c°1111 P-4, executed by Bank of Commerce and Trust Company and

8ented to by Lemphis Abstract Company, Commerce Title Guaranty

raPany, Hull-Dobbs-Price Company, and Thompson-Katz Lumber211PanY, all of which exhibits shall be in form satisfactory to

sel for the Federal Reserve Bank of St. Louis."

44 for the following purposes:

The t e,el-bram also stated

414tra

ot bear theIlEtve

seal of such corporation, and authorized the agent to

4.1sePared by counsel for the Federal reserve bank, and to issue

t° thBEnk of Commerce and

cl„ "To elect directors of such bank at the annual meeting1 shareholders, or at any adjournments thereof, at any time

!rior to April 1, 1935, and to act thereat upon such mattersL4 a routine nature as are ordinarily acted upon at the annual4leetings of such bank."

that'Exhibits L and N covering the Lemphis

et C(ImPany are required because the exhibits now on file do

Trust Company, a limited voting permit

t4eareee7darice with the teleP.ram when the conditions prescribed

In have been complied with.

Approved.


1 12/21/34 -14-

Telegram dated December 20, 1934, approved by two members

q the Board, to Lr. Sargent, Assistant Federal Reserve Agent at

the Federal Reserve Bank of San Francisco, stating that the Board

h" given consideration to the application of the "Old National Cor-

Ition", Spokane, Washington, for a voting permit under the

4141-11,0ri,-cty of section 5144 of the Revised Statutes of the UnitedStates as amended, entitling such organization to vote the stock

171lich it owns or controls in the following banks:rIt ,Ihe Old National Bank and Union Trust Company of Spokane",

0 Spokane, Washington,tarst National Bank in Spokane", Spokane, Washington,',The First National Dank of Grandview", Grandview, Washington,'The First National Bank of Medical Lake", Medical Lake, Wash-0", ington,'he Security National Bank of Palouse", Palouse, Washington,hr The First National Bank of Reardan", Reardon, Washington,

,,the First National Bank of Ritzville", Ritzville, Washington,nPirst National Bank in Sprague", Sprague, Washington,:The First National Bank of Sunnyside", Sunnyside, Washington,olosviston National Bank", Lewiston, Idaho,The First National Bank of Moscow", Moscow, Idaho,

1121c1 has authorized the issuance of a limited permit to the applicant,

elllect to the following conditions:

3988

"(1) Prior to the issuance of the limited voting permitauthorized herein,

"(1) the Federal Reserve Agent shall satisfy himselfthat each of the subsidiary banks of the applicant hascharged off or otherwise eliminated, (a) all losses inloans and discounts, (b) all depreciation in stocks and de-taulted securities, (c) all depreciation in securities not

the four highest grades as classified by a recognized-111,restment service organization regularly engaged in theIlsiness of rating or grading securities and (d) all other

,?sses; as shorn by the latest available reports of examina-,'Icns by the appropriate supervisory authorities, except

at the charge-offs and eliminations required by (b) andke) above may be based upon current appraisals of marketable


3989

(1 12/21/34

(31

11

/)(1.tio

11, a limited voting permit in accordance -with the teloGram'41°11 the

-15-

securities satisfactory to the l'ederal Reserve Agent;"(2) the Federal Reserve .1cent shall satisfy himself

that the applicant has substantially performed any agree-ment or agreements heretofore executed by it as a conditiontO the issuance of a limited votin7, permit by the FederalReserve Board;

"(3) the Federal Reserve k;ent and the Executive Con-Littee of the Federal reserve bank shall approve the issu-cnce of such permit.'2) Simultaneously with the issuance of the limited

11°17an permit authorized herein there shell be issued to 'In-and Securities Co.' the limited voting permit

11:110rized in the ALCIG.L telegram bearing the same date askdals telegram."

44d ,followinf; purposes:

"To elect directors of such banks at the annual meetingsOf Shareholders, or at any adjournments thereof, at any timePrior to April 1, 1935, and to act thereat upon such matters°I a routine nature as are ordinarily acted upon at the annualIlleetins of such banks."

The t

°I-e l'arrl also authorized ,he arent to have prepared by counseltor e

icderal reserve bank, and to issue to the Old :ational or-

conditions prescribed therein have been complied with.

Approved.

In connection with the above, there was presented a second

4111 dated December 20, 1954, approved by two members of thetn

t° Saro.ent, -,ssistant Federal Reserve Agent at the Federal

.k;i02:,,xiktoof Zan Francisco, stating t1-0,t the Board has given con-

the application of the "Investment and Securities Co.",:13°1calle, -iias

iiinr`tel, for a votin0_, permit under the authority of see-

thO ::evised Statutes of the United States, as amended,

.211ch oranization to vote the stock vthich it ovnc or


3990

12/21/34

ceritrols in the following banks:

"The Old National Bank and Union Trust Company of Spokane",.Spokane, Washin7ton,

7First National Bank in Spokane", Spokane, Washington,"The First National Bank of Grandview", Grandview., Washington,"The First National Bank of Medical Lake", Medical Lake," Tiashini?ton,The Security National Bank of Palouse", Palouse, Washington,

"The First National Bank of Reardan". Neardan, Viashinston,"The First wational Bank of Ritzville", Ritzville, Nashin:ton,First National Bank in Sprague", Sprague, Washington,"The First National Bank of Sunnyside", Sunnyside, Washinton,"Lewiston National Bank", Lewiston, Idaho,th.

he First National Bank of Moscow", Moscow., Idaho,

alldhas authorized the issuance of a limited permit to the applicant,

subject to the following conditions:

horiez"(1) Prior to the issuance of the limited voting permitaut

d herein,"(1) the Federal Reserve Agent shall satisfy himself

that each of the subsidiary banks of the applicant hasCharged off or otherwise eliminated, (a) all losses in loansetad discounts, (b) all depreciation in stocks and defaultedsecurities, (c) all depreciation in securities not of thefour highest grades as classified by a recognized investmentservice organization regularly engaged in the business ofrating or gradinr, securities and (d) all other losses; asshc)wn by the latest available reports of examinations by theaPPropriate supervisory authorities, except that the charge-offs and eliminations reauired by (b) and (c) above may bebased upon current appraisals of marketable securitiessatisfactory to the Federal Reserve Agent;

that the the Federal Reserve Agent shall satisfy himself'that the applicant has substantially performed any agreementor agreements heretofore executed by it as a condition to

Zevis=d;e of a limited voting permit by the Federal No-0

Board;

Federal Reserve Ar:ont and the Executive Corn-of the Federal reserve bank shall approve the issuance

"Itc(aic\h permit.votiz;21 Simultaneously with the issuance of the limited1111.ti, permit authorized heroin there shall be issued to 'OldAlicT`,:lial Corporation' the limited permit authorized in the"AR telegram bearing the same date as this telegram."

114(1 tOr the 4,purposes:

-16-


12/21/34. -17-

'1'i:a elect directors of such banks at the annual meetingsof .shareholders, or at any adjournments thereof, at any timePrior to -Lpril 1, 1935, and to act thereat upon such matters

a routine nature as are ordinarily acted uPon at the annualIlle°tirics of such banks."

The ,'elegram also authorized the agent to have prepared by counsel

rcr the Federal reserve bank, and to issue to the Investment and

ecttriti' es Co., a limited voting permit in accordance with the tele-

, 11,4.'ion the conditions prescribed therein have been complied with.

Approved.

Telegram dated -December a), 193z.., approved by two members of

3991

Pec.-aldeserve Lank of San Francisco, statin.- that the Board has

le Bto Ls. Sargent, Aassistant Federal Reserve Agent at the

6.1.7erlconsideration to the application of the "Rawlins Securities

Collip4w, salt Lake City, Utah, for a voting permit under the author-

i'reT section 5144 of the Revised Statutes of the United States, as

ke4cled, entitlin': such oranization to vote the stock which it owns

'°11trols in the following banks:

14„£11'St ationa1 Bank of Caldwell", Caidwell, Idaho,

*ee.?

J.daho,

he„autnorized the issuance of a limited permit to the applicant,

lab 4dec t

.̀.c) 1::ae followin; conditions:

e,41.: "(1) Prior to the issuance of the limited votin7 permitnorized herein,

th "(1) the Federal Reserve Agent shall satisfy himself

• each of the subsidiary banks of the applicant hasell• ed off or otherwise eliminated, (a) all losses in loansflcl discounts, (I) all c,epreciation in stocks and defaultedaecuritios, (c) all depreciation in securities not of the


3992

12/21/34 -18-

"four highest grades as classified by a recognized investment

service organization regularly engaged in the business of

rating or grading securities and (d) all other losses; asshown by the latest available reports of examinations by the

appropriate supervisory authorities, except that the charge-offs and eliminations required by (b) and (c) above may be

based upon current appraisals of marketable securities

satisfactory to the Federal Reserve Agent;

"(2) the Federal Reserve Agent shall satisfy himselfthat the applicant has substantially performed any agreementor agreements heretofore executed by it as a condition tothe issuance of a limited voting permit by the Federal Re-serve Board;

"(3) the Federal Reserve Agent and the Executive Commit-tee of the Federal reserve bank shall approve the issuanceof such permit."(2) Prior to the issuance of the limited voting permit

authorized herein, you shall obtain assurances satisfactory toyourself that applicant will deliver to you prior to 1:arch 1,i 35, Exhibit L, F.R.B. Form P-3, executed by Continental Build-...4g Company and Exhibit N, F.R.B. Form P-4, executed by appli-'1.qt and consented to by Continental Building Company, both of'Toil exhibits shall be in form satisfactory to counsel for theFederal Reserve Bank of San Francisco."

841dfor the follomiw; purposes:

"To elect directors of such banks at the annual meetings''.shareholders, or at any adjournments thereof, at any time

!!143r to April 1, 1935, and to act thereat upon such matters'1 a routine nature as are ordinarily acted upon at the annual

lreetings of such banks."

telegreZI also authorized the agent to have prepared by counsel

41* the Federal reserve bank,

C°14116•11Y,

171164 the

111

orhe

()Ell.d, to Er. Sargent, Assistant Federal Reserve Agent at

and to issue to the Rawlins Securities

a lted voting permit in accordance with the telegram

conditions prescribed therein have been complied with.

Approved.

Telegram dated December 20, 1934, approved by two members

deral Reserve Bank of San Francisco, stating that the Board


12/21/34 -19-

3993

4" given consideration to the application of the "Yakima Holding

C°11)°ration", Yakima, Vi'ashington, for a voting permit under the au-

t4 ty of section 5144 of the Revised Statutes of the United States,

48 atend, entitling such organization

°7418 or

kid has

controls in the "Yakima

and "The First National

to vote the stock which it

First National Bank", Yakima, Wash-

Bank of Viapato", Wapato, Washington,

authorized the issuance of a limited permit to the applicant,

141bject to the follouing conditions:

kr.td

The

tor

Prior to the issuance of the limited voting permit au-thorized herein,

"(1) the Federal Reserve Agent shall satisfy himselfthat each of the subsidiary banks of the applicant hasCharged off or otherwise eliminated, (a) all losses inloans and discounts, (b) all depreciation in stocks anddefaulted securities, (c) all depreciation in securitiesnot of the four highest grades as classified by a recognizedinvestment service organization regularly engaged in thebusiness of rating or grading securities and (d) all otherlosses; as shown by the latest available reports of examina-tions by the appropriate supervisory authorities, except

a.t the charge-offs and eliminations required by (b) and‘e) above may be based upon current appraisals of marketablesecurities satisfactory to the Federal Reserve Agent;

t "(2) the Federal Reserve Agent shall satisfy himself

hat the applicant has substantially performed any agreement!r agreements heretofore executed by it as a condition toe issuance of a limited voting permit by the Federal Re-3erve Board;

"(3) the Federal Reserve Agent and the Executive Com-mittee of the Federal reserve bank shall approve the issu-ance of such permit."

thefollowing purposes:

tt,ahr,_ 10 elect directors of such banksat the annual metinTsof

prilrehool. lders, or at any adjournments thereof, at any time to April 1, 1935, and to act thereat upon such matterstieettine nature as are ordinarily acted upon at the annual

14Cs of such banks."telo,_

"'am also authorized the agent to have prepared by counsel

of


12/21/34 -20-

3994

fcir the Federal reserve bank, and to issue to the Yakima Holding

CorPoration, a limited voting permit in accordance with the telegram

the conditions prescribed therein have been complied with.

Approved.

Letter dated Lecember 20, 1934, approved by three members

"the Board, to Mr. O. B. Ellenberger, Third Assistant i-ostmasterGet,

eral, reading as follows:

"This refers to your letter of I:ovember 9, 1934, withreference to the question as to whether matter mailed byFederal Reserve Board examiners, who make examinations of Fed-eral reserve banks, is entitled to free registration. The13°0,,rd regrets that due to the pressure of other matters of anurgerit

nature an earlier reply has not been made.t, "It is noted that you state that in view of the law andu° °Pinions of the Attorney General referred to in your let-ter, it seems questionable whether the Federal reserve examinersquestion employed in the field are entitled to free registra-on at points outside of lAlshington and, after considerationOf „ the matter, the Board agrees with you that the natter is'pestionable. In the circumstances, however, the Federal Re-r.

Board will instruct its examiners whose official stations1°t Permanently located in Washington not to request that

71:I registered by them at points outside of Washinf:,ton be'131stered without the payment of registry fees."

hi

Approved.

There vms then presented the following application for a

stock of a Federal reserve bank:

41)1113,lioation for ORIGINAL Stock:IZQ'ict LI" 7.'ellaxrce National Bank in :.;hicaco,ChieeZe, Illinois

Approved.

Shares

138 138


1

_Jccrc),„!...r7.

399512/21/3,1

%roved:

-21-

lhoreupolitiLe meetin7 adjourned.

Governor.


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