The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-05-19
EACH STATE GETS
MEMBER ON BOARD
Method of Selection Causes Hot
Debate, but Steering Com
mittee Saves Day.
SEAY NAMED FOR VIRGINIA
Richmond Man Is Recommended
for Directorate as Class
B Member
SEAY NAMED FOR VIRGINIA

After n trying session OF almost
eight hours, broken only by Il midday
recess for luncheon, convention OF
delegates representing majority os
the member banks OF the Fifth Fed
cral Reserve District At the Jefferson
Hotel voted late yesterday AFTERNOON
to recommend for election as directors
OF the Richmond reserve bank these
men:
Group L., Glass A-Wnldo Newcomer.
president OF tho National Exchange
Bank, Baltimore.
Group l., Glass B--Georgc J. Scuy,
Richmond, business man.
Group H., Glass A-Colonel John Il.
Bruton, president of the First National
Bank, Wilson, n. c.
Group H.. Class B-D. L. Cokcr.
Hartsviile. 5. c., merchant and farmer.
Group Ill, Glass A-Edwin Mann
president OF the First National Bank
Blueileld, w. Va.
Group Ill, Class B-James T.. OS-s-
ter. Washington, u. c., Wholesale pro-
duce dealer.
The Federal reserve act directs that
the banks OF each reserve district shall
for voting purposes be divided into
threc groups of approximately the
same size, the grouping to place to-
gether banks Of approximately the
same capitalization. y division on
these lines places l60 banks In Group
l., comprising all banks possessing ;tn
aggregate capital and surplus OF S14O,-
600 and over. Group H., embracing
banks with 4 combined capital and
surplus less than $4,000 and more
than 100000. has 15S banks.
The same number Is contained in
Group III, which includes all banks
possessing All aggregate capital and
surplus OF $4,000 or less
! ACTION OF CONFERENCES;
Is PURELY ADVISORY
| The action OF yesterdays conference
Is purely advisory. The Federal re-
! serve act expressly provides that Glass
y and directors shall DO chosen
! by regularly qualified electors dcs-
iSnHtod by the member banks OF the
district. each bank having the privi-
leG4 of voting for amy person II chooses
Tor the office OF director. The nomi-
necs agreed upon 1T yesterdays con-
ference are merely recommended for
election from the respective voting
groups.
Tho fact, however. that the confer
encc was called for the express p,r-
pose OF limiting tha field OF possible
candidates TO small number OF men
whose selection woull meet the views
OIL 4 large number o: banks affected, is
taken 10 mean that the slate decided
upon Yesterday is practically assured
oi tlect:cn 1t WAS al proved vyithout
Il dissenting voice by upwards OF 200
delegates representing Il ntaiority OF
The member banks OF !hr Fifth Reserve
District
y change in tho personnel OF tho
tentative directorate could bo effected
only through concerted action of tho
banks in each OF the separate groups.
Ihc groups, of course, take no account
or State lines. and could not overturn
thc conference recommends ton with
cut serious disturbance Of the balance
7 .t.y
named yesterday is designed to m,iu-
tain. ''''''
EACH Or SIX POLITICAL.
DIVISIONS GIVEN ONE DIRECTOR
me SIN men were picked after Il Sc
rles OF committee meetings and a ren-
eral session decidedly stormy in c6ar
hcter. 1t was agreed almost at tho
outset that each of tho six politirol
subdivisions OF the Fifth Reserve bis.
, trict should be given one director
winch States should lie given Glass a
ana which Glass Il directors. and Lou.
these directors should be a,lected y's-,.
questions which taxed the wisdom of
the conference for their answer.
Ihe nrst obstacle was encountered
wnch IL became evident that each state
. esatioil--composed entirely, of
course, OF banllers-madc n hid for ,
I Class y director for its state Irndar
the Federal reserve act the ,,ernha,.
paiikS VIII elect six directors-three
from the banking business and three
from inc commercial or aericultura
pursuits. The remaining three tnem
! bers OF the board OF nine which u,il,
govern the affairs Of each Fedsro,
serve bank are to be appointed bv tbo
Federal Reserve Board
itn hNe states and the District O,
columbia all asking for Class 4 direc-
tors' thc conference was confronted
with the problem of effectinu q distri
4
winch would be accepted as eouitablo
by me delegates. Assignment or CI,ss
ana directorships by lot was suS
EeSted and rejected. The problem was
iii'y turned over to 4 steering com
ihittec of eighteen members-thrn.
from each political subdiv,sionS
wn!ch decided the assignments In ar
ecutiVe session and submitted q rcnor+
which was adopted.
MILTON &. ELLIOTr Makes
ILLUMINATING ADDRESS
The convention began business ot -
o'clock yesterday morning. Vice.
President John N Miller, Jr., OF the
First National Bank Richmond rh.ir
man OF the local convention co,n,s,i,
tee, called the gathering to order
Inc body organized by elcctine X. q
Rhett, president OF the peonlc.s NJ
tional Bank Of Charleston. s. q. prrrna
mont chairman. and j. S, Hill, cashier
or the National City Bank of Charles
ton. w. Va, permanent secretary.
Milton c. Elliott. secretary OF tho
federal reserve organization commit.
tee. delivered IN illuminating half
hour address. discussing the moro Inn
portant features OF the Federal re- /.
serve act. lie brought out partfcular
ly the points to be borne In mind In
drawing up II plan for c,ectlng tho di-
roctors. The Federal reserve act he
told the delegates. has merely out
lined Il giant machine. whose efficiency
will be measured by tho quality OF tho