Meeting Minutes, November 14, 1951, Volume 38, Part 5

Minutes of actions taken by the Board of Governors of the

Naeral Reserve System on Wednesday, November 14, 1951.

PRESENT: Mr. Martin, ChairmanMr. SzymczakMr. VardamanMr. NortonMr. Powell

Mr. Carpenter, SecretaryMr. Sherman, Assistant SecretaryMr. Kenyon, Assistant Secretary

Minutes of actions taken by the Board of Governors of the

Reserve System on November 13, 1951, were approved unanimously.

Memorandum dated November 7, 1951, from Mr. Bethea, Director,'1

011 of Administrative Services, recommending that the resignationM

s Mildred L. Preble, Assistant Supervisor of the Cafeteria inthet t

ivision, be accepted to be effective, in accordance with her

tecillest, at the close of business November 30, 1951.

Approved unanimously.

Memorandum dated November 9, 1951, from Mr. Bethea, Director,

14/118ion of Administrative Services, recommending the appointment of Mrs.

441te. laker McCalley as Assistant Supervisor of the Cafeteria in that

11418iarl' on a temporary indefinite basis, with basic salary at the4.te or

$2,974 per annum, effective as of the date upon which she

8 11P°n. the performance of her duties after having passed the usual

13481e41 "amination and subject to the completion of a satisfactoryElt41)101,,„

—4elit investigation.


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

-2-

Letter to Mr. Diercks, Vice President of the Federal Reserve

111111( of Chicago, reading as follows:

Bezit

taiik

"In accordance with the request contained in yourletter of November 8, 1951, the Board approves thede signation of Paul F. Carey as a special assistantexaminer for the Federal Reserve Bank of Chicago."


Letter to Mr. Wiltse, Vice President of the Federal Reserve

New York, reading as follows:

"In accordance with the request contained in yourletter of November 8, 1951, the Board approves thedesignation of the following as special assistantexaminers for the Federal Reserve Bank of New York:

John C. CalhounAlbert C. ChaseWilliam R. Mulligan"


Telegram to Mr. Woolley, Vice President of the Federal Reserve

of Ka„sas City, reading as follows:

ti "Reurlet November 9, 1951, Board approves designa-„°11 of Harold Winfred Humphreys, Jr., as a special as-

ant examiner for the Federal Reserve Bank of KansasltY while a trainee for position as an assistant examiner."

c011omic

or

eXce8s Profit taxes upon banks; reviewing subsequent meetings attended


Memorandum dated November 5, 1951, from Mr. Thomas and Mr. Horbett,

Adviser to the Board and Assistant Director of the Division of

OPe etir---ons, respectively, referring to the discussion at the meeting

theard on October 15, 1951, regarding a proposed study of the impact


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11/14/51-3-

b:Yllftbers of the Board's staff, representatives of the other Federal

bellk supervisory agencies, and representatives of commercial banks to

cliscussthe scope of such a study and participation in it by the various

e.gelleles and the banks; and proposing that as a part of the study a ques-

are be drafted and sent to all insured commercial banks (or to all

of the larger banks and a sample of the smaller ones). The memorandum

also stated that, following a discussion with Governor Powell, arrangementshad beer,— made with President Erickson, of the Federal Reserve Bank of Boston,

n of the Committee on Research and Statistics of the Presidents

--ce, for the designation of an ad hoc System subcommittee to have

geZlel,44.1 direction of the study, which subcommittee would include Mr. Thomp-

kYla' vice President of the Federal Reserve Bank of Cleveland; Mr. Armistead,

Vice?

resident of the Federal Reserve Bank of Richmond; Mr. Mitchell, 1./ice8 id

ent of the Federal Reserve Bank of Chicago; and Mr. Horbett, Assistant114ector

-- of the Board's Division of Bank Operations. The memorandum recom-tem—"q that this procedure for the System's participation in the study be

4Proy

°f the ,-c°136 of the proposed study and the extent to which the various

fitgeheies

and bankers' groups were to participate.


l'°11°Ifing the action at the meeting of the Board on October 26,1951 all

th°11-zing thekack,

ed) with the understanding that the Board would be advised further

issuance of an order suspending the license of Herb

(1°Ing business as Television Service Center, Cincinnati, Ohio,


11/14/51 -4-

1411'suant to section 8(b) of Regulation W, Consumer Credit, there was

1 Pared a draft of order for a hearing for the purpose of determining

whether the license should be suspended. It was contemplated at the

nieeting on October 26, 1951, that there subsequently would be received

f4Ila attorneys for the Registrant a signed waiver of hearing and consent

to e„-'rY of order suspending the license of the Registrant under Regula-

ti0sft4 W. Accordingly, in order that it might be clear that the necessary

steps

setlit t 0 suspension of license, the Board issued the following order:

had been taken in connection with this waiver of hearing and con-

"UNITED STATES OF AMERICAAt -8,-(xr, THE BOARD OF GOVERNORS OF TIT FEDERAL, meeting of the Board of Governors of the'Ystem held at its offices in the City of Was

11). the Matter ofBLACK) a.k.a. HERBERT BLACKSCBIEGER,

10,514., Television Service Center,- 4" McMillan Streq, Cincinnati, Ohio

The Federal Reserve Bank of Cleveland has advised thealso' of Governors of the Federal Reserve System that Herb Black,

(5r.1,4k11°wn as Herbert Blackschleger, doing business as Televisionre Center, hereinafter called the registrant, has filed aRe:-Lstration statement with that Bank pursuant to Sec. 2(b) of

DIt1.181"i°11 W, consumer credit, issued by the Board of Governors

allaeri nt to Section 601 of the Defense Production Act of 1950, asor 6;:c1; and that Bank has transmitted information to the Boardthe "ernors which tends to show that since September 18, 1930,siolleffective date of Regulation W and contrary to the provi-

telj;itliereof, the registrant has made instalment sales ofregleslon receiving sets and other articles listed in that

ation in violation of the terms of that regulation.

II4 The information reported to the Board of Governors,

f4he re orth in Section I hereof tends, if true, to show that201te eistrant, in instalment sales of listed articles since

illber 18, 1950, has violated Regulation W:

on the 14th day of Novemberi_i_l. D., 1

RESERVE SYSTEMFederal Reservehington, D. C.,951.

ORDER FOR PROCEEDINGSPURSUANT TO SECTION8(b) OF REGULATION W,CONSUMER CREDIT.


11114/51-5-

"A. By not obtaining the down payment required bySection 3 (a);

B. By not obtaining the down payment at or beforethe time of delivery of listed articles, as required by Sec-tion 3 (c);

C. By delivering listed articles in anticipation oflr1stalment sales without obtaining at or before the time of1,,Ich delivery, a deposit equal to the down payment that wouldrequired on such an instalment sale, as required by Sec-

311 6 (f);

D. By accepting trade-ins instead of cash as partalltra of the down payment on sales of listed articles, con-

e. ry to the provisions of Part of the Supplement in force, the time of such sales.

A to t .0ne or more of the violations alleged in Paragraphs

inclusive, hereinabove occurred in connection with onetrLmore of the sales of listed articles by the registrant to

following persons:Edward Groeniger Earl MitchellSenolia Hunter John E. DeanMrs. Jessie Thompson Morris Earley

Leonard Abner Wilbur RolfsonRoy Will James EapmonFloyd Price Mrs. Charles Metzger

Stuart E. Hardin James TruittLouis Curry Kenneth JonesRobert Washington

IIIPr()ce The Board deems it necessary and

echngs be instituted to determine:a4a II A. Whether the statements set forth in Se

hereof, are true;B. Whether it is necessary or appropriate

8118.1.0. interest to suspend the license of the registo Section 8(b) of Regulation W.

appropriate that

ctions I

in thetrant pur7

Ivor t It is hereby ordered that a hearing for the purpose1*.reor-ng evidence on the questions set forth in Section III(I *be held before the Board or before a trial examinertensitat de- by the Board at a time and place to be fixed by the

(signed) S. R. Carpenter,Secretary."



11/14/51 -6-

Waiver of hearing called for by the above order and consent

to entry of order suspending Registrant's license having been received

from attorneys for the Registrant, the following order was issued:

"UNITED STATES OF AMERICAT BEFORE THL BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

the Matter ofVB BLACK, a.k.a. HERBERT BLACKSCHIEGER,1 :3-9-.) Television Service Center,'-̀ !)0 East McMillan Street,Cincinnati Ohio,

ORDER SUSPENDING LICENSE UNDER REGULATION IN On November 14th, 1951, the Board of Governors of the

mi,_Ad-L Reserve System ordered that a hearing be held to deter-whether or not the license of Herb Black, also known as

celirrt Blackschleger, doing business as Television Service

azla r) hereinafter called the registrant, should be suspended,

attorne On November 14th, 1951, said registrant, by his

Boaril ,Ys) Harry A. Abrams and Saul M. Greenberg, filed with the

Re nis I.Waiver of Hearing and Consent to Entry of Order Suspendinggistrant's License', and

004sent The Board, having considered the Waiver of Hearing andt

Etrn, 0 Entry of Order Suspending Registrant's' License,-Aesaid

ber.no HEREBY ORDERS, under authority of Section 601 of the-e Production Act of 1950:

1. That the license of said registrant issuedPursuant to Regulation W be and the same is hereby sus-.1ellcied for fifteen days, from November 18 to December

1951, both dates inclusive; provided, that this°rder shall not prohibit the receipt of any payments on

er-,318ti ng obligations, or the making of .payments of any-u-LtEations, including obligations to employees for88.1 ries and wages.pi 2. Any terms used in this order that are de-

in Regulation W shall have the meaning therein

4tve , BY order of the Board of Governors of the Federal Re-oYstem this 14th day of November, 1951.

(signed) S. R. Carpenter,Secretary."



11/14/51 -7-

Telegram to Mr. H. V. Prochnow, Secretary, Federal Advisory

C°1111eil First National Benk, Chicago, Illinois, reading as follows:

"Refer letter November 9 re topics for next meetingOf Federal Advisory Council. Board would like to have an

informal round-table discussion participated In by all mem-bers of the Advisory Council of the problem of the publicdebt in so far as it affects the responsibilities and opera-

of the Federal Reserve System."



Documents

Meeting Minutes, November 14, 1951, Volume 38, Part 5