Norwich bulletin., 1913-12-25
CLASSES OF DIRECTORS.
Board of Nine to Control Each Reserve
 Bank

Board of Nine to Control Each Reserve Bank. Every federal reserve bank shall be conducted under the supervision and control of q board of directors. Such board of directors shall be se- lected as hereinafter specified and shall consist of nine members, holding office for three years and divided into three classes, designated as Classes A, B and c.
 Class A shall consist of three mem
 bers, who shall be chosen by and be representative of the stock holding banks.
 Class B shall consist of three mem : bers. who at the time of their election shall be actively engaged in their dis trict in comm cree, in agriculture or in some other industrial pursuit Class c shall consist of three mem bers, who shall be designated by the federal reserve board. When the nee essary subscriptions to the capital stock have been obtained for the or ganixation for any federal reserve bank the federal reserve board shall appoint the Class directors and shall designate one of such directors as chairman of the board to be selected Pending the designation of such chair man the organizati ton committee shall exercise the powers and duties appep- taining to the office of chairman in the organization of such federal reserve bank.
 No senator or representative in con gross shall be q member of federal re serve board or an officer or director of federal reserve bank.
 No director of Class E shall be an officer, director or employee of any bank.
 No director of Class c shall be an officer. director, employee or stock holder of any bank
 Class c directors shall be appointed by the federal reserve board. They shall have been for at least two years residents of the district for which they are appointed, one of whom shall be designated by said board as chairman of the board of directors of the federal reserve bank and as fed erai reserve agent He shall be a person of tested banking experience, and in addition to his duties as chair man of the board of directors of the federal reserve bank he shall be re- quired to maintain under regulations to be established by the federal reserve board a local office of said board on the premises of the federal reserve bank
 Sec. 5. The capital stock of each fed eraI reserve bank shall be divided into shares of $1O0 each.
 S Division of E@rntngs.
 Sec. q After all. necessary expenses of a federal reserve bank have been paid or provided for, the stockhold- iers shall be entitled to receive an annual dividend of 6 per centum on the paid in capital stock, which divi- derd shall be cumulative After the aforesaid dividend claims have been fully met all net earnings shall be paid to the United, States as a franchise tax, except that one-half of such net earnings shall be paid into a surplus fund until it shall amount to 40 per centum of the paid in capital stock of such bank
 The net earnings derived by the Unit ed States from federal reserve banks shall, in the discretion of the secretary, be. used to supplement the gold reserve held against outstanding United States notes, or shall be applied to the re ducticR of the eutstanding bonded in debtedness of the United States. Re serve banks shall net be taxed except upon real estate
 Section amends the existing bank ing laws So that stockholders owning 51 per centsof the stock ae banks other than national banks can convert their