19370420_Minutes.pdf

577

tern we s

Transamerice Corporation and Inter-America Corporation, both of San

Yratca

California, for voting permits authorizing them as holding

A. meeting of the Board of Governors of the Federal Reserve Sys-

held in Washington on Tuesday, April 20, 1937, at 4:00 p. m.

PRESENT: Mr. Eccles, ChairmanMr. Ransom, Vice ChairmanMr. BroderickMr. SzymczakMr. McKeeMr. Davis

Mr. Morrill, SecretaryMr. Bethea, Assistant SecretaryMr. Carpenter, Assistant SecretaryMr. Clayton, Assistant to the ChairmanMr. Thurston, Special Assistant to the

ChairmanMr. Wyatt, General CounselMr. Paulger, Chief of the Division of

ExaminationsMr. Leonard, Assistant Chief of the

Division of ExaminationsMr. Cagle, Assistant Chief of the Division

of ExaminationsMr. Wingfield, Assistant General CounselMr. Baumann, Assistant Counsel

Mr. McKee reviewed the consideration which had been given by the

13Qard tothe applications filed under date of November 29, 1933, by the

e°171Panv- affiliates to vote the stock owned or controlled by them in the

Bellk of A„.-44eric8 National Trust and Savings Association, San Francisco,

1111a, The First National Bank of Portland, Portland, Oregon, andthe r,4'rst National Bank in Reno, Reno, Nevada. He pointed out that,

utter i

8811ing limited voting permits to the applicants in 1934 and 1935t°r the ,

-01rPose of electing directors and acting upon matters of ane

netul'a, the Board, on December 17, 1935, authorized the issu-

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ance of general voting permits to the applicants upon condition that they

execute certain agreements, but that the agreements were not executed

and therefore the general voting permits had not been issued; that early

Iii Februar-,Y 1937, new applications dated December 26, 1936, were filed

thl'ough the Federal Reserve Bank of San Francisco; and that subsequent

to the riling of the new application a recommendation had been received

ttcm the executive committee of the Federal Reserve Bank of San Fran-

cisco that the original applications of November 29, 1933, be grantedby. the Board of Governors. Mr. McKee referred to the provisions of

Section 5144 of the Revised Statutes relating to the period of five years

within which holding company affiliates must dispose of any interest in

1sec/111-ties companies and called attention to certain contractsbeen

entered into for the purpose of eliminating objectionable

44d losses from the Bank of America National Trust and Savings

which had

assets

Association,

"d to questions which had been raised regarding the capital structures

or this bank and the other two subsidiary national banks. He called

"terition also to the fact that the Board had been informed of a proposed

Plan for terminating the holding

the 114411k of America National Trust and Savings Association.

company affiliate relationships as to

These matters were then discussed after whichMr. McKee moved that the Board authorize the Fed-eral Reserve Agent at San Francisco, subject tothe two conditions set forth below, to issuegeneral voting permits to the Transamerica Corpora-tion and the Inter-America Corporation to vote thestock owned or controlled by them of the Bank ofAmerica National Trust and Savings Association,San Francisco, California, The First National BankOf Portland, Portland, Oregon, and The Iirst Na-tional Bank in Reno, Reno, Nevada, with the under-

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standing that the Federal reserve agent would be re-quested to advise the applicants that the Board wouldconsider the agreements contained in the applicationsand any other agreements executed as a condition tothe granting of general voting permits terminatedwhen the general voting permits issued to the appli-cants pursuant thereto were revoked or surrenderedWith the approval of the Board, and that the Boardwould approve the surrender of such permits whenit was satisfied that the applicants were not hold-ing company affiliates:

That prior to the issuance of such generalvoting permits, each applicant shall exe-cute and deliver to the Federal ReserveAgent in duplicate an agreement in theform accompanying the Board's letterX-0385, except that (a) the word "State"shall be omitted from paragraph 2; (b)paragraphs 4 and 5 shall be omitted andthe remaining paragraphs appropriately re-numbered; and (c) the following shall be in-serted as an additional numbered paragraph:

"6. That the undersigned's applicationfor a voting permit dated December 26, 1936,and filed in February, 1937, is supplementaryand amendatory to, and does not supersede,its application dated November 29, 1933, andfiled shortly thereafter; that the applica-tion dated November 29, 1933, as amendedfrom time to time, is now pending before theBoard of Governors of the Federal ReserveSystem, and the general voting permit to begranted upon the execution of this agreementshall be granted pursuant to such applica-tion; and that November 29, 1933, shall bedeemed to be the date of the undersigned'sapplication for the purpose of determiningthe period within which the undersigned mustdispose of any interest in 'securities com-Panies' as provided in paragraph 5 of its ap-plication, as well as for all other purposes."

2. That the two voting permits be issued simul-taneously.

Mr. McKee's motion was put to a vote andcarried unanimously.

At thisPoint Mr. Szymczak left the meeting.

Mr.MOrrill referred to the existence of a carpenters' strike at

1.

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the Board,s new building by reason of a jurisdictional dispute which

had arisen betteen the carpenters', plasterers' and lathers' unions

regarding the installation of acoustic tile in certain sections of the

101aUdang and to a possibility that the carpenters' strike might be

terlainated if the Board were to agree to the

58C

use of acoustic plaster in

Place of such tile. Mr. Morrill stated that the Board's Superintendent

Of C°ristruction was favorable to the acceptance of the acoustic plaster

tt*e6itment in lieu of the acoustic tile because he believed that the

131aster would be more attractive in appearance, and that the Board's

krellitects were agreeable to the substitution, although they pointed

°Ilt that it would not be as efficient in acoustical qualities as tile

alld that/ therefore, the tile rould be preferable in the cafeteria,

gr°1-111d floor,

°Perations

atrike end

and stenographic pool areas. Yr. Morrill stated that

at the building were slowing down because of the carpenters'

that he had just received advice from Vice President DistlerOf

the George A. Fuller Company,

811Peintendent of Construction Kramer, that

cost °r h,000 if the proposed substitution

8oardwould agree to assume 4,OOO ofw°1114

arrange to make the substitution,

who had been discussing the matter with

there would be an extra

were made but that, if the

this cost, the Fuller Company

After a discussion Mr. Morrill was author-ized to endeavor to bring about a settlement ofthe matter without additional expense to the Board!!!It with authority to agree, as a compromise, tothe Payment by the Board of an amount not exceeding2,000.

At thin Point Messrs. Thur;-ton, Wyatt, Paulger, Leonard, Cagle,

telazd Baumann left the meeting and consideration was then given

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to eachOf the matters hereinafter referred to and the ction stated with

respect thereto as taken by the Board:

The minutes of the meeting of the Board of Governors of the

Federal Reserve System held on April 19, 1957, were approved unanimously.

Letter to Mr. Young, Secretary of the Federal Reserve Bank of

Chicago, reading as follows:

"The Board of Governors of the Federal Reserve Systemhas received your letter of April 15, and approves the

,ction taken by the Executive Committee of your bank onfitPr"L ilea

9 in granting to Mr. C. B. Dunn, General Counsel, ve of absence with nay of seven days in addition to his

regular vacation period."

Approved.:

Approved unanimously.

Thereupon the meeting adjourned.

Chairman.

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