member bank shall be permitted to nominate to the chairman of the board of directors of the Federal reserve bank of the district one candidate for director of class A and one candidate for director of class B. The candidates so nominated shall be listed by the chairman, indicating by whom nominated, and a copy of said list shall, within fifteen days after its completion, be furnished by the chairman to each member bank. Each member bank by a resolution of the board or by an amendment to its by-laws shall authorize its president, cashier, or some other officer to cast the vote of the member bank in the elections of class A and class B directors.

Within fifteen days after receipt of the list of candidates the duly authorized officer of a member bank shall certify to the chairman his first, second, and other choices for director of class A and class B, respectively, upon a preferential ballot upon a form furnished by the chairman of the board of directors of the Federal reserve bank of the district. Each such officer shall make a cross opposite the name of the first, second, and other choices for a director of class A and for a director of class B, but shall not vote more than one choice for any one candidate. No officer or director of a member bank shall be eligible to serve as a class A director unless nominated and elected by banks which are members of the same group as the member bank of which he is an officer or director.

Any person who is an officer or director of more than one member bank shall not be eligible for nomination as a class A director except by banks in the same group as the bank having the largest aggregate resources of any of those of which such person is an officer or director.

Any candidate having a majority of all votes cast in the column of first choice shall be declared elected. If no candidate have a majority of all the votes in the first column, then there shall be added together the votes cast by the electors for such candidates in the second column and the votes cast for the several candidates in the first column. [If any] The candidate then [have] having a majority of the electors voting [by adding together the first and second choices, he] and the highest number of combined votes shall be declared elected. If no candidate have a majority of electors voting and the highest number of votes when the first and second choices shall have been added, then the votes cast in the third column for other choices shall be added together in like manner, and the candidate then having the highest number of votes shall be declared elected. An immediate report of election shall be declared.

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 "Federal reserve agent.' He shall be a person of tested banking experience, and in addition to his duties as chairman of the board of directors of the Federal reserve bank he shall be required to maintain, under regulations to be established by the Federal Reserve Board, a local office of said board on the promises of the Federal reserve bank. He shall make regular reports to the Federal Reserve Board and shall act as its official representative for the performance of the functions conferred upon it by this act. He shall receive an annual compensation to be fixed by the Federal Reserve Board and paid monthly by the lederal reserve bank to which he is designated. One of the directors of class C shall be appointed by the Federal Reserve Board as deputy chairman to exercise the powers of the chairman of the board when necessary. In case of the absence of the chairman and deputy chairman, the third class C director shall preside at meetings of the board.

Subject to the approval of the Federal Reserve Board the Federal reserve agent shall appoint one or more assistants. Such assistants, who shall be persons of tested banking experience, shall assist the Federal reserve agent in the performance of his duties and shall also have power to act in his name and stead during his absence or disability. The Federal Reserve Board shall require such bonds of the assistant Federal reserve agents as it may deem necessary for the protection of the United States. Assistants to the Federal reserve agent shall receive an annual compensation, to be fixed and paid in the same manner as that of the Federal reserve agent.

Directors of Federal reserve banks shall receive, in addition to any compensation otherwise provided, a reasonable allowance for necessary expenses in attending meetings of their respective boards, which amount shall be paid by the respective Federal reserve banks. Any compensation that may be provided by boards of directors of Federal reserve banks for directors, officers, or employees shall be subject to the approval of the Federal Reserve Board.

The Reserve Bank Organization Committee may, in organizing Federal reserve banks, call such meetings of bank directors in the several districts as may be necessary to carry out the purposes of this act, and may exercise the functions berein conferred upon the chairman of the board of directors of each Federal reserve bank pending the complete organization of such bank.

At the first meeting of the full board of directors of each Federal reserve bank, it shall be the duty of the directors of classes A, B, and C, respectively, to designate one of the members of each class whose term of office shall expire in one year from the first of January nearest to date of such meeting, one whose term of office shall expire at the end of two years from said date, and one whose term of office shall expire at the end of three years from said date. Thereafter every director of a Federal reserve bank chosen as hereinbefore provided shall hold office for a term of three years. Vacancies that may occur in the several classes of directors of Federal reserve banks may be filled in the manner provided for the original selection of such directors, such appointees to hold office for the unexpired terms of their predecessors.

O

SALE OF JACKSON BARRACKS MILITARY RESERVATION,

LA.

MAY 23, 1930.-Committed to the Committee of the Whole House on the state of Union and ordered to be printed

Mr. QUIN, from the Committee on Military Affairs, submitted the

following

REPORT

[To accompany H. R. 6871]

The Committee on Military Affairs, to whom was referred the bill (H. R. 6871) to amend the acts of March 12, 1926, and March 30, 1928, authorizing the sale of the Jackson Barracks Military Reservation, La., and for other purposes, having considered the same, report thereon with the recommendation that it do pass with the following amendments:

Page 2, line 13, after the word "post" change the comma to a colon, strike out the rest of the sentence, and insert the following: "Provided further, That".

Page 2, line 14, strike out the word "under". Strike out the word "suspended" and insert in lieu thereof the word "canceled". Page 2, line 15, strike out the words "and during".

With these amendments a proviso is inserted reading as follows: Provided further, That said lease may be canceled by him without notice in case of any national emergency:

The purpose of this is to clarify the language of the bill to provide that any time war is declared or any other national emergency exists the Secretary of War shall have authority to take immediate possession of the property for such purposes as may be necessary to war

time uses.

The letter of the Secretary of War approving this measure explains just what it purposes to do. After careful consideration your committee is of the opinion this is the best disposition of the property that can be made considering the interests of the National Government and the National Guard, which constitutes an important arm

of the national defense. The letter of the Secretary of War is made a part of this report as follows:

Hon. W. FRANK JAMES,

Chairman Committee on Military Affairs,

House of Representatives.

FEBRUARY 3, 1930.

DEAR MR. JAMES: Careful consideration has been given to the bill H. R. 6871, which you transmitted to the War Department under date of December 10, 1929, requesting a report thereon.

The Jackson Barracks Military Reservation, La., is now occupied by the State of Louisiana for National Guard purposes, by virtue of a license granted on October 22, 1921. An act of Congress approved March 12, 1926 (44 Stat. 203), authorized the sale of this reservation, and section 7 thereof, granted an option to the State to purchase the reservation at its approved appraised value for public purposes. The governor of Louisiana expressed a desire to exercise such option and requested that the property be held for sale to the State of Louisiana for a period not exceeding two years in which to make payment, in accordance with the terms of the act. An act of Congress approved March 30, 1928 (45 Stat. 397), extended the time from two years to six years.

As the proposed legislation will withdraw this property from sale, upon the release by the State of Louisiana of its option to purchase, and authorize the Secretary of War to lease the reservation to the State of Louisiana for National Guard purposes in consideration of its maintenance and upkeep by the State, with suitable provisions for termination of the lease in case of military necessity, I favor the passage of this bill, and so recommend.

Sincerely yours,