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Resolution No. 2921 ~, < ., ' . " ' . ;>~: '." RESOLUTION NO. 2921 A RESOLUTION OF THE CITY COUNC'IL.* pF THE CITY OF VERNON, URGING ';'THE CONGRESS OF THE 'UNITED STA'113fh'TO ADOPT SENATE BILL 1306. : '~<:: - "i' -~,:" ._:\.,;1:_, , 1" ,~-:. .' 5 G ,~ a 9. 10 11 ~--.~ , THE CITY COUNCIL OF~HE CITY OFV'ERNON ,RES<LftS AS FOLLOWlh .,' - .,' " -", - . -, "_, '-: ,'. :".f!" r~' _ - - - . , -""';";<", , . , , . - ' W$REAS,tbere is preS'eitly' peBdlng bef.x:-~r th$: Se.a't~ of the United States Senate Bill 1306 introp.uc~by Seaat.rProxm.ire .:fWisc.nsi.and, " :,"'" ':' i$ "", " WHEREAS, said. bill' is' destIned "~,.-.ss~s~:: ~:d ties aad states and t. allow .ational banks the authority to uBderwri '\i~(tand::de.a:L/ " , ~'- '~"-"t,:~;:,.:.: in securi:ties iss,ued,.by state and ,localg_e~lIIIle.ts and, '";.:..""',,. ,", lZ WHEREAS, the C1:ty Council of the City 'of :Vern..,;dtU;llDa$the ~"",', -', . -, ' :,.'> ",,' '-:~ ," :",>,::2'~':,',~~:,: ,,:~,~j~ ,,' 13 enactment of such bill to. the 'best intereS'ts of "the' Giti,,~~.f' 14 Verne., 15 NO'\ft THEREFORE, BE IT RESOL~: 16 SECTJ;PN,;l': That the City':CGUDc:i:lofthe 17 does hereby; urge the Congress of the United 18 te eaact iato law Senate Bill 130611 19 SECtION 2: That the City Clerk of the 20 .certi,fy. ,.:to the passage of thisre,selution, a,nd ',":'1'" , thereafter-the same shall beiD full ferce .aBd ADOPTED ANn APPROVED this 3rd day.f 'Oc,ebe1)', 1967'. ATTEST: , . ~Ity C1erll: _." - . . ii!/;/.d~z ( . '0' . 24 25 26 27 28 29 30 31 32 - 1 - 4 5 6 7 '8 ': ':, ~ . 9 10 11 12 13 14 15 16 17 27 28 29 30 31 32 " ( ~ '-" <Ii>' <! ) ;;0. ) . ( ss. COUNTY OF LOS ANGELES ) I, F. A. ZIEMER, City Clerk of the City of Ver..., do certify. that the foregeiug rese1uti.., bei.gRese1utiaa No,. 292]., ., - /" -,' -' -5~ -.- ~ . .,' ,- .' . - . . . . , . ' ' was duly adopted by the City Ceuaci1 ef;tbe Cityef yer.-... aad. appreved by the Mayor of said City, at a Regular Meetingef the City Cou.cl1, held on october 3, 1967. C1'ty Clerk ..;- .1:,_';. ;'jr ,,~ 20 21 22 23 24 - 2 - CX/ ~~- J~HN SPAR:MAN O. ALABAMA 3203 NEW SENATE OFFICE BUILDING ~Cnileb ,${a{e-s Jaenafe CHAIRMAN, COMMITTEE ON BANKING AND CURRENCY COMMITTEE ON FOREiGN RELATIONS JOINT ECONOMIC COMMITTEE CHAIRMAN, SUBCOMMITTEE ON HOUSING SELECT COMMITTEE ON SMALL BUSINESS JOINT COMMITTEE ON DEFENSE PRODUCTION JOINT COMMITTEE ON THE REORGANIZATION OF CONGRESS CHAIRMAN, SENATE BUILDING COMMISSION WASHINGTON, D.C. 20510 November 61 1967 RECEIVED /J-1~7 F. A. ZIEMER ~ITY CLERK Mr. F. A. Ziemer City Clerk City of Vernon Vernonl California 90058 Dear Mr. Ziemer: Thank you for your recent letter concerning S. 13061 a bill to permit banks to underwrite and deal in revenue bonds. As you may know, the Committee recently met on this bill and after considering all of the arguments both for and against the measure agreed to report it to the Senate. The Committee approved two amendments to the bill which I believe will provide addi tionaJ. safeguards. One amend- ment which I introduced would prevent a bank from transferring bonds from its underwriting account to its investment account during the underwriting period. The other amendment would require the Secretary of the Treasury to provide the Congress with an annual report on the impact of the billl andl par- tiCularly, on the distribution of business between investment banks and eommereial banks. I appreciate your views and thoughts on this important legislation. With best wishesl I am Sincere1YI ~6~~ ~ .t--- ~ John Sparkman Chairman WASHINGTON. D.C. RECEIVED It) -~o~7 F. A. ZIEMEI CITY CLERK WILLIAM PROXMIRE W WISCONSIN ~ ~[niie~ Jalaies JDenate October 25, 1967 Mr. F. A. Ziemer, City Clerk City of Vernon 4305 Santa Fe Avenue Vernon, California 90058 Dear Mr. Ziemer: Trank you for your recent letter concerning S. 1306, a bill to permit banks to underwrite am deal in municipl.l revenue bonds. As you nay know, the Subcommittee on Fimncial Institutions considered this legislation on October 4 and agreed to report the bill to the full Committee. I believe that this legislation will benefit state and local governments through lowering the rate of interest on revenue bond issues. At the same time, I feel that there are adequate safeguards in the bill concerning any possible conflict of interest. I am sure the Committee will expect the bank supervisory agencies to be especially diligent in assuring that this new authority is not abused. I appreciate your views and comments on this important legislation. With best wishes, I am ~W1 GEORGE MURPHY CALIFORNIA o~ ~ ~Cnil.b -State.. 'seftafe WASHINGTON, D.C. 20510 October 10, 1961 ~tCtl'vtD f D-.:2 ~/ F.)I (0 crr~ ZltMtlT ' CLeRk Mr. F. A. Ziemer City Clerk, City of Vernon 4305 Santa Fe Avenue Vernon, California 90058 Dear Mr. Ziemer: I lJa.ve received your c01'lllYl\lnieation regarding S. 1306, which was introduced on Ma.rch 16 of this year by Senator Proxmire and would extend. the authority of the national banks to underwrite and deal. in securities issued by state and. loceJ. governments. As you my know, the Senate Banld.ng and. Currency Sub- committee on Financial Institutions held hearings in late August and. again the middle of September. It is my under- standing that no further action bas as yet been scheduled for the legislation. I lJa.ve not bad an opportunity to study the measure in detail, but I know there iss a great deal. of interest in it in California. You my be assured the legislation will re- ceive my most s~thetic consideration when it is reported to the Senate Floor. Sincerely, 7~:r~ 1iank nf l\uttrita NATIONAL ~~iN~ ASSOCIATION VERNON August 31, 1967 THOMAS A. DEANE VICE PRESIDENT AND MANAGER Mr. Robert J. Furlong Mayor City of Vernon 4305 Santa Fe Avenue Vernon, California 90058 Dear Bob: This morning we discussed the proposed legislation that would per- mit commercial banks to underwrite and deal in municipal revenue bonds in which they can invest. Extensive hearings were held before the Committee on Banking Currency, House of Representatives during the Eighty-eighth Congress, first session and the Eighty-ninth Congress, first session on legislation identified as H.R.5845 and H.R.7539. the bills were not defeated, they were left in committee for consideration. and While future On March 16, 1967 Senator Proxmire (Wisconsin) introduced S.1306 almost identical with H.R.5845 and 7539. Prior to scheduling hearings he requested the Board of Governors of the Federal Reserve System and the Comptroller of the Currency to undertake studies in depth to determine the interest savings, if any, which might accrue to state and local governments through passage of S.1306. These studies have been completed and will disclose there will be savings. Senator Proxmire has conducted hearings on the bill which will be concluded today before his Subcommittee on Financial Institutions of the Senate Banking and Currency Committee. Recently the presidents of several banks including our own R. A. Peterson appeared before the Board of Governors of the Federal Reserve System in support of the proposed bill. At the same time Professor Reuben A. Kessel, Professor of Business Economics, University of Chicago, Graduate School of Business, presented a study on interest saving, financed jointly by the interested banks and the National League of Cities. Dr. Kessel's findings supported the thesis that there would be interest savings by permitting banks to underwrite and deal in municipal revenue bonds. Mr. Robert J. Furlong Mayor - 2 - August 31, 1967 It is expected that following the committee hearings, the legislation will be considered by the full committee in executive session and then by the Senate. If favorably passed, the House will then take up their legislation, possibly by direct floor action rather than going through committee again. As most of the major banks are anxious to see this legislation passed, and because it is in the public interest particularly now with everyone tax conscious, we are asking some of our good friends among the local public officials to assist us. If appropriate, Bob, we would like you to write letters or send wires or if possible pass necessary resolutions endorsing the bill. If you could send me a copy of any such action, it will be appreciated. As I mentioned, there are no California Senators on the Senate Banking and Currency Committee. We have been told, however, that it would be appropriate to address communications to our Senators with copies to the chairman of the Banking and Currency Committee and to the chairman of the Subcommittee on Financial Institutions. I have attached the names and addresses of these individuals. Also enclosed is a copy of Senate bill S.1306. We all feel that this is important legislation and any support that you can give from the City' of Vernon will be greatly appreciated. Sincerely, ~~ ! ~ j~ TAD:tl Encls. Hon. Thomas H. Kuchel United States Senate Room 315 Old Senate Office Building Washington, D. C. 20510 Dear Senator Kuchel Hon. John T. Sparkman Chairman Banking & Currency Committee United States Senate Room 3203 New Senate Office Building Washington, D. C. 20510 Dear Senator Sparkman Hon. (full name of representative) House of Representatives House Office Building Washington, D. C. 20510 Dear Mr. Hon. George Murphy United States Senate Room 452 Old Senate Office Building Washington, D. C. 20510 Dear Senator Murphy Hon. William Proxmire Chairman Subcommittee on Financial Institutions United States Senate Room 2311 New Senate Office Building Washington, D. C. 20510 Dear Senator Proxmire , .:. 90TH CONGRESS 1ST SESSIOX C!, 11 ?d)d2 ;:)0 AQ.)vU IN rrHE SEN ATJD OF THE UNITED STATES i\LU:ClI 16, 1967 Mr. PROX)[IllE (by requl'st) introduced the following bill; ,,'hich was read twice \:111l1 referred to the COlllmittee on Banking and Currency A BILL To assist cities and States by amending section 5136 of tho' Revised Statutes, as amended, ,,'ith respect to the authority of national banks to under\yrite and deal in securities issued by State and local goyemments, and for other purposes. 1 Be it enacted by the Senate and House of Representa- 2 tives of the United States of Amel'icain Congress assembled, 3' That paragraph Seventh of section 5136 of the Revised 4 Statutes of the U nitedStates, as amended (12 U.S.C. 24), 5 is hereby amended by adding the follo\ying new sentences 6 at the end of such paragraph: "The limitations and'restric- 7 tions contained in this paragraph as to dealing in and under- 8 )\Triting iuyestment securities shall not apply to all other 9 obligations issued or guaranteed by or 011 behalf of a State II )(f;:Hd " 1"(",'1', ix'r'Ro '('1'1"'1' :. 2 1 ' or any political subdivision thereof or agency of a State or 2 any political subdivision thereof (except special assess111ent 3 obligations allcl industrial development obligations) 'which 4 are at the time eligible for purchase by a national b'ank for 5 its own account, except that (1) no association shall hold 6 such' obligatiOlis of any Olie obligor or maker (other than 7 general obligations of a State or political, snbdh-ision thereof) 8 as a. result of nndenyriting, dealing, or purchasing for its 9 own a~count (and for this Pl111)o80 obligations as to which 10 it is under commitment shall be deemed to be held by it) 11 in a total amount exceeding at anyone time 10 per centum 12 of its capital stock actually paid in and unimpaired and 13 10 per centum of its unimpaired surplus fund, (2) the Imr- 14 chase of such obligations by a national bank as fiduciary from 15 such bank as an unden'Titer or dealer shall not be permitted 16 unless la,,-fully directed by court order, (3) no association 17 may purchase snch obligations as fiduciary from a member 18 of a. syndicate in which such association is participating until 19 the syndicate has dosed as to underwriting, and (4) any 20 sales of such obligations by an association to any of its de- " 21 positors or borrowers or to any conespondent bank (whether 22 for such bank's own account or as tmstee) must be accom.c 23 panied by a disclosure in ,yriting to the purchaser that the 24 association is selling as an underwriter or dealer. For pm: 25 poses of this paragraph the term 'inc1nstrialc1eyelopment ol)li- ; .. 3 1 gat-Jon' shall mean an obligation, not securec1 by the full 2 faith and credit. at tho issuer, pnyablo solely from the rentals , ' 3 recoiycc1 by the issuer from tho letting of property to priyute 4 manufacturers for the principal purpose of manufacturing 5 artic1~s for sale if such oblig'ltio11S hayc been issucc1 to finance G the acquisition, coilstrue:tion, equipment, or other c1eyclop- 7 mcut of such property <1llCl such property is held or to be 8 held by tho issuer for tho_principal purpose of such letting , 9 anc1 inot as part of or incidental to another project of the 10 issuer." " xnw, _' '''fl/''( ;",.,,,,, "'.{ THOMAS H, KUCHEL CALIFORNIA ~Cnife~ ~{a{e$ ,$,ena{e October 30, 1967 F.A. Ziemer, City Clerk City of Vernon Vernon, California Dear Mr. Ziemer: Thank you for your comments concerning S. 1306, a bill to permit national banks to underwrite state and local revenue bonds. I have taken the opportunity to direct your views to the Senate Committee on Banking and Currency for their consideration. It appears that there is little controversy on this subject on the Senate side. You may be assured that I intend to support this measure when it comes before the floor of the Senate. Your views are appreciated on this most important subject. With kindest regards, ~~ THOMAS H. KUCHEL United States Senator K:Ph RECEIVED 11-2 .,-,,_ 7 F. A, ZIEMER CITY CLERK (l I f j \ i Y cc: Bank of America CITY OF VERNON CALIFORNIA October 4,1967 HC)tl. '.'Ceorge Murphy United. States ,'Senate Room 452 Old Senate Office BUilding Washington, D.C. 20510 Dear Senator Murphy: Weare enelo.i.ngher~ithacertified copy of Resolution No. 2921 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON, URGI:NG ,THE CONGRESS or THE UNITED STATES TO ADOPT SENATE ,BILL 130~, which was adopted by the City Council at its regular meeting of October ,3, 1967. Yours very truly, F. A. Ziemer, City Clerk rAZ: ll. ene. cc: Bank of ,. Amex-tca CITY OF VERNON CALIFORNIA I~ Octob.er 4, 1967 Hon. William Proxmire Cbai't'ntan Subcoamittti!e,on Financial Institutions United States Senate Room 2311 New Senate Office Building Washington, D.C. 20510 Dear Senator Proxmire: We are enclosinghereCfith a certified copy of It.solution No. 2921 ... A RESOLtn'ION. OF THE CITY COUNCIL ,OF' THE CITY OF .VIRNON, URGING THB"CONGIlESS ,OF THE UNITED STATES TO ADOPT SENATE BILL 1306, which was adopted by, the City Council at its regular meet1.na of October 3, 1967. Yours very truly, FAZ:ll.. enc. F. A. Ziemer, City CUtr\< (~ I r I ee: Bank of America CITY OF VERNON CALIFORNIA October 4, 1967 Ron. John T. Sparkman Chairman, Banking & Currency Committee United States Senate Room 3203 New Senate Off.iceBuilding Washington, D.C. 20510 Dear Senator Sparkman: We areenc1osingh.rewith a certified copy of Resolution No. 2921 - A RESOLUTION OF THE CITY COUNCIL OF THE CITYOF,VBRNON, URGING THE ,CONGRESS OF THE UNITED STATES TO ADOPT' SENATE BILL 1306, which was adopted by the City Council at its regular meeting of October 3, 1967. t , Yours very truly, FAZ:ll. enc. F.A.Ziemer, City Clerk y I cc: Bank of America CITY OF VERNON CALIFORNIA October 4, 1967 Ron.. Thomas H~ Kuchel United States 'Senate Room 315 Old Senate OlficeBuilding Washington,D.C.205l0 near Senator Kuche 1 : We are enclosing herewith a certified copy of Resolut,ion No., 2921 .. A RESOLUTION OFTRE CITY COUNCIL OF THE CITY>OFVERNON, URGING THE CONGRESS OF THE UNITED STATES TO ADOPT SENATE BILL l306, whichwlls adopt,ed by the City Council at its regular meeting of October 3, 1967* Yours very 'truly, FAZ:ll. enc. ,. A.. Ziemer, City Clerk ('~l y I cc:Bank of 'America Crrv OF VERNON CALIFORNIA October 4~ 1961 HonorahleDelM. ClaWson Representati.ve in Congress, District 23 House Office Building l"l1$hington:. D..C. 20510 Dear Sir: We a.re enclosing herewith a certified copy of Resolution No. 2921 ... A RESOtuTION OF THE CITY COUNCIL OF THE CITY OF VERNON, URGING THE c;ONGRESS OF THE UN,ITED STATES TO ADOPT SENATE BILL 1306. which was adopted by the City Council at its regular meeting of October 3,1967.. Yours,very truly, FAZ:ll. enc. F. A. Ziemer, City Clerk