Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1914-12-08
INTERLOCKINC DIRECTORATES;
RECENT OPINION CONSTITUTING
CLAYTON ANTITRUST LAW

er or person who is a director In any
bank trust company, organized ana
operating under the laws of State, nav
ing deposits. capital. surplus and unel--
vsded profits aggregating more than ID
O0eoo, shall be eligible to be director
in any bank or banking association or
ganized or operating under the laws Oh
the United States"
This paragraph further provides that:
when a director, officer, or en-
ployee has been elected or selected IN ac-
cordance with the provisions OF TINS act
1t shall be lawful for him to continue as
such for one year thereafter under SAID
election or employment"
Paragraph of said section PROVIDES
that:
NO bank, banking association, or trust
company, organized or operating unoer
the laws of the United States, in any
city or Incorporated town or village VI
more than 100000 inhabitants, as SHOWN
by the last preceding decennial census
of the United States, shall have as d1rec-
tor or other officer or employee any PIT
vate banker or any director or other ON
Ger or employee of any other bank, bank
ing association, or trust company iocat-
ed in the same place; Provided, ihat
nothing in this section shall apply 10 mu,
tual savings banks not having capltai
represented by shares: Provided Fur
Their That a director or other officer, or
employee of such bank, banking associa-
ton, or trust company may be director
or other officer or employee of not more
than one other bank or trust company Or
ganized under the laws of the Onlteo
States. or any state where the entlre cap
ital stock of one is owned by Stockholders
in the other; and Provided Further, Inat
nothing contained in this section shalI
forbid a director of Glass OF a F,ederai
reserve bank as Defined IN oe ehe er AZ a.
rector or both an officer ana director III
one member bank
The last paragraph OF section oirects
that:
II ,+aI n,~ nhnCan
a director or officer or selected as an em-
ployee of any bank or other eorporauoh
subject to the provisions or TINS ace Is
eligible at the time OF his eiectloh OF sc
lection to act for such bank or otner cor
poration in such capacity. his ellglpiIty
to act in such capacity shall not De al
fected and he shall not become or De
deemed amenable to any other provisions
hereof by reason of any change in the af-
fairs of such bank or other corporation
from whatever cause, whether specincai-
~ excepted by any of the PROVISIONS o,,s
hereof or not. until the expiration or one
year from the date of his election or EN-
ployment.
From the facts stated and in accord
ute. | am of the opinion that the two
years limitation mentioned in the nfst
paragraph of section of the act appnes
also to the second paragraph, ana that
director of the said trust company is
eligible to serve as a director OF
national bank not having common
ownership of stock, until the expifd,
ton of two years after the approval
of the act; and that by authority or the
last paragraph above quoted, he is ehgl-
Die to further serve for such time there
after as constitutes the unexpired part
of one year from the date of election
am of the opinion also that the stat
ute will fairly bear the liberal interpreta-
ton that it was intended that paragrap
/ ard . should be read together IN order
that the existing arrangements might not
he subject to sudden and inconvenlent
changes; and that the first paragraph as
TO eligibility to serve as a director IN Two
institutions whose deposits, capltai, etc,
exceed Sc, 900, 600 be modified by the SECOND
in the case of institutions the stock OF
one of which is wholly owned by the
stockholders in the other.
t am further of the opinion that II was
/ the iutention Of Congress that the Ilrst
/ two paragraphs of Section 5 as to banks
whose deposits capital, surplus, etc, ag :;
| oregate more than 5000, 900, and as TO AL
banks in cities of over 100000 population
the provisions as to time of the act tax
ing effect mutual savings banks, common
stock ownership and Federal reserve
hanks should apply alike.
The letter of Mr.. Webb is herewith re-
turned.
Very respectfully,
fSigned) F. A. REEVE,
Acting Solicitor