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122.5-10 - Wyoming & Nebraska Appeal pocket Boundaries of FRDistricts 'ssifriANOTE, Filing Pockets s-Y 47— A special "Y and E" finer rnntnrial of ert-urno soloty by toughoems nn d durabiliLy. YAWMANANDERBN.E MFG.O. ROCIMSTE t o. 1524 E.Size 11 :;9j' 3Va http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis BEFORE THE FEDERAL RESERVE BOARD. In the Matter of the Petition of Bankers in Nebraska and Wyoming asking that the territory comprising said states be taken out of the Federal Reserve District Number Ten (Kansas City) and annexed to Federal Reserve District Number Seven (Chicago). BRIEF AND ARGUMENT ON BEHALF OF PETITIONERS. HENRY W. YATES, President Nebraska National Bank, Omaha. FRED H. DAVIS, President First National Bank, Omaha. LUTHER DRAKE, President Merchants' National Bank, Omaha. WILLIAM D. McHuGH, Omaha, Counsel. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis BEFORE THE FEDERAL RESERVE BOARD. In the Matter of the Petition of Bankers in Nebraska and Wyoming asking that the territory comprising said states be taken out of the Federal Reserve District Number Ten (Kansas City) and annexed to Federal Reserve District Number Seven (Chicago). BRIEF AND ARGUMENT ON BEHALF OF PETITIONERS. The petition of the Nebraska and Wyoming banks praying that the territory comprising said states be taken out of District Number Ten (Kansas City) and annexed to District Number Seven (Chicago) should be granted because the placing of those states in the Kansas City District did not give "due regard to the convenience and customary course of business." Congress, in the Federal Reserve Act, provided that the Continental United States be divided into districts, each district to contain one Federal reserve city. In the first instance, the Act provided, these districts were to be created by the Reserve Bank Organization Committee. But Congress did not leave the establishment of these districts to the uncontrolled discretion of the committee, and the Act expressly provided that the action of the Committee in creating the districts should not necessarily be final. The Committee had no uncontrolled discretion in fixing the boundaries of the districts. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 2 Congress realized that the inauguration of the new system of banks provided for in the Federal Reserve Act was a practi cal matter in which most of the details were necessarily to be left to the judgment of the administrative officials having it in charge. The Organization Committee was the proper body to make investigation and, in the first instance, decide upon the location of the reserve banks and the boundaries of the respective distric ts. Much was of necessity left to their combined judgment. But certain principles of decision were regarded by Congress as so essential to the successful operation of the system that the Act itself, by mandatory provisions, made those principles of contro lling force in the decision. We are here concerned with but one of these principles. Congress well knew that it was of the utmost importance to the successful operation of the new system that the convenience and customary course of business be recogn ized and be undisturbed as far as practicable. It was imperative that, so far as it could be done, the new system was to fit into the usual and established currents of trade and commerce. Congr ess regarded this matter as so vital to the success of the new system, that this was not left to the uncontrolled discretion of the Organization Committee. On the contrary, in the Federal Reserve Act, Congress provided that the districts to be established should be "apportioned with due regard to the convenience and customary course of business." This was established as a principle of decision which binds and was intended to bind all officials charged with respon sibility and duty in the establishment of the districts. The power of the Organization Committee in the establishing of the distric t, was not absolute or discretionary; that body was limited in its action by the provision in the law above stated. The decision of the Organization Committee as to the bound aries of the districts was not intended by Congress to be final. As we have seen, Congress deemed an undue interf erence with the convenience and customary course of business so seriou s http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3 a menace to the success of the new system, that it was expressly provided in the Act that the districts should be so apportioned as to avoid this result. But so solicitous was Congress that the convenience and customary course of business should not be unduly disturbed in the creation of these districts, that it was provided in the Act that the judgment of the Committee as to the inclusion of any specific territory within any specific district should be subject to review by the Federal Reserve Board. This matter was so important, and the principle of decision so vital to the siiccess of the system, that the judgment of the Organization Committee was not made final. On the contrary, the matter was one which could be brought before the Federal Reserve Board for review. On this review the Federal Reserve Board should act with open mind and give its independent judgment. The imperative command of Congress that there should be, in the establishment of these districts, no undue interference with the convenience and customary course of business, makes the review by the Federal Reserve Board of the determination of the Committee in including any specific territory in any specific district, a real and not a formal proceeding. The Board must consider the district as created and the facts as to the convenience and customary course of business, and then give its independent judgment. If the decision of the Committee were to be accepted as controlling, the review would be perfunctory. The mandate of Congress still stands as the controlling principle of decision to be applied by the Board. If in the judgment of the Board, the inclusion within the Kansas City district of the territory comprising the states of Nebraska and Wyoming, results in an undue interference with the convenience and customary course of the business of that section, then the Board must follow the Act of Congress, and, by proper order, take such territory out of the Kansas http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 4 City district and annex it to the district which is so circumstanced as to allow the business of the territory named to flow in its convenient and customary channels. This must of necessity be true. Of course the districts cannot be so arranged as to suit the convenience of everyone. Even if one or two banks or a small section of the district be necessarily inconvenienced the matter would be so inconsiderable as to be negligible. But when such an extent of territory as the states of Nebraska and Wyoming is involved, the unit is so large and the interests affected so extensive, that the matter cannot be dismissed as unimportant. Moreover, when such an extent of territory is involved, it necessarily follows that the "convenience and customary course of business" to which due regard must be given in establishing the districts, is the convenience and customary course of business of the states of Nebraska and Wyoming. It may well be that with the majority of banks and with respect to a large part of the territory embraced in the Kansas City district, the convenience and customary course of business is fully recognized in the inclusion of such banks and territory in that district. But if the convenience and customary course of business of Nebraska and Wyoming demand the inclusion of that territory in the Chicago district, then it should be so included regardless of the course of business in the remainder of the territory in the Kansas City district. To include in any district an important and extensive territory which, by reason of the course of its business should be included in another, and then seek to justify such action upon the ground that the banks in such territory are a minority of those within the district as created and that the majority are satisfied, is to do what Congress expressly provided should not be done. The simple mandate of the Act, and the manifest purpose of Congress in framing it, forbid the inclusion of such an extent of territory as Nebraska and Wyoming in the Kansas City district, if the convenience and http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 5 customary course of the business done in Nebraska and Wyoming is eastward to Chicago and not southward to Kansas City. The evidence as to the convenience and customary course of the business of the states of Nebraska and Wyoming. 1. The relation of the banks of a community to its business is so intimate that no better evidence as to the customary course of its business can be found, than the arrangements which the banks have made to accommodate the business men of a community. The banks provide the facilities necessary to the transaction of the business of their communities. The transaction of business between Nebraska and Wyoming and trade centers, involves the exchange of moneys and credits. Banks are organized, among other things, to provide this exchange; and, to adjust themselves to this demand, banks have correspondents at trade centers with which this exchange of money or credits is demanded by the business of their communities. To secure the patronage of the business of their communities, banks advertise their facilities for doing business as demanded in their sections, including the arrangements perfected in the establishment of correspondents at trade centers. The bankers necessarily know the demands and needs of the business men of their community. Therefore, no better evidence of the customary course of business of a territory can be furnished, than the arrangements made by the banks of such territory for the exchange of money and credits at trade centers and the advertisements of the banks, in that regard, for their patrons. We have compiled from the Bankers' Encyclopaedia, a recognized authority published in New York City, for the month of September, 1914, the listed correspondents of the national banks in the states of Nebraska and Wyoming. A list of the names of all Nebraska National Banks and their reported correspondents is attached hereto as Exhibit "A" and a list of the names of all http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 6 Wyoming National Banks with their reported correspondents is attached hereto as Exhibit "B". These show the following significant facts: Of the 220 national banks of the state of Nebraska, 136 list a correspondent at Chicago; 194, a correspondent at New York; 199, a correspondent at Omaha; 39, a correspondent at Lincoln, Nebraska; 36, a correspondent at Sioux City, Iowa; 17, a corres pondent at St. Joseph, Mo.; II, a correspondent at St. Louis, and 10, a correspondent at Kansas City. Of the 32 national banks now in the state of Wyoming, 20 list a correspondent at Chicago; 31, a correspondent at Omaha; 29, a correspondent at New York; and i, a corresponden t at Kansas City. Let us not be misunderstood. It is of course true that many of these banks have accounts at cities like Minne apolis and Milwaukee and other places, which accounts are compar atively unimportant. Undoubtedly, some of the banks mentioned have accounts of that character in the banks at Kansas City; but this does not affect the significance of our showing. The great salient fact is, that of the 220 national banks of the state of Nebraska, only a) advertise a correspondent at Kansas City, and of the 32 national banks of the state of Wyoming, only i advertises a correspondent at Kansas City; while, of the Nebraska banks, 132 advertise a correspondent at Chicago, and of the Wyoming banks, 20 advertise a correspondent at Chicago. Not only is this fact true today, as shown by the publication mentioned, but it has been true during all the past years since Nebraska and Wyom ing had any appreciable business. An inspection of any publication similar to the one mentioned, throughout the years, will show that the situation today is substantially the same as that which has always prevailed. The bankers of Nebraska and Wyom ing are necessarily in touch with the business of those states ; they naturally and necessarily advertise the possession of facilit ies which are in http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 7 demand by business men of those states. The insignificant numbe r which advertise a correspondent at Kansas City, makes absolut ely clear, the insignificance of the demand for exchange upon Kansas City in the states of Nebraska and Wyoming. The location of the various cities wherein the Nebraska and Wyoming banks advertise a correspondent, makes clear the fact that the course of business throughout Nebraska and Wyoming is eastward throug h Omaha to Chicago, and not in a southerly direction to Kansas City. Realizing that the banking transactions are a reflex of the business done throughout the community, we have endeav ored to ascertain the number of transactions between banks in Nebraska and Wyoming and Kansas City, as compared with the transactions between said banks and Omaha and Chicago. Letters were written to the petitioning banks of Wyoming and Nebraska outside of Omaha and South Omaha, requesting information as to these actual transactions. The time chosen was the month of May, 1914. Answers were received from most of the banks, the names and locations of which are stated on a list attached hereto, as Exhibit "C". The original answers are on file with this Board. From these answers it appears that, as a matter of fact, in the month of May, 1914, the said Nebraska National Banks, cashed and forwarded checks and other items as follows: 2. Drawn upon Chicago Drawn upon Omaha Drawn upon Sioux City Total. Drawn upon Kansas City $ 1,442,060....139 banks 8,474,996.. .144 banks 877,653.... 82 banks $10,794,709 $ 202,377.... 90 banks From these letters, it also appears that the said banks issued exchange (drafts and checks) during the same period, as follow s: http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 8 On Chicago On Omaha On Sioux City Total 92 banks $ 1,940,869 10,098,309 ..148 banks 934,397. • • • 34 banks $12,973,575 On Kansas City, $84,233 by five banks, and no accounts reported from the remaining banks. Insignificant as these figures are for Kansas City, it was further shown by the replies from the five banks reporting them that they were largely produced through exceptional transactions. Four Nebraska banks reported the number of items instead of amounts, and these were:Items cashed drawn on— Chicago and Omaha Kansas City 1049 Exchange issued on— Chicago and Omaha Kansas City 1408 None. From these letters it also appears that the listed banks of Wyoming cashed and forwarded amounts of checks and other items as follows: Drawn upon Chicago Drawn upon Omaha Drawn upon Sioux City Total Drawn upon Kansas City http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $ 417,711 .... 12 banks 1,019,010.. ..13 banks 568.... 3 banks $1,437,289 4,929• • .. 7 banks. 9 And it also appears that the listed Wyoming banks issued exchange (drafts and checks) during the same period as follows: On Chicago On Omaha On Kansas City $ 378,837....10 banks 1,233,952....13 banks None. Clearer or more convincing testimony as to the business between Nebraska and Wyoming and Chicago and the business between said territory and Kansas City, could not be found. The showing of actual business during the month puts beyond the peradventure of a doubt the fact that the course of the business of Nebraska and Wyoming is eastward to Chicago and not in a southerly direction to Kansas City. 3. The unanimity of the demand on the part of the banks in Nebraska and Wyoming to be annexed to the Chicago district and taken out of the Kansas City district, is another evidence that the usual and customary course of business calls for the inclusion of such territory within the Chicago district. It is a matter entirely of course, that the bankers of a community are fully acquainted with the usual and customary course of business of their territory. The bankers of Nebraska and Wyoming are fully acquainted with the needs of that territory, and the arrangements necessary in order that the business of that territory should flow in its accustomed channels. If the usual and customary course of the business of Nebraska and Wyoming were with Kansas City, the bankers of the territory would necessarily desire association with the Kansas City Reserve Bank, and therefore, the inclusion of that territory within the Kansas City district rather than within the Chicago district. The demand, however, on the part of the banks of Nebraska and Wyoming to be included in the Chicago district and taken out of the Kansas City district, is so overwhelming that its significance can hardly be over-estimated. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 10 Of the 218 member banks within the state of Nebraska, 203 have petitioned to be taken out of the Kansas City district and included within the Chicago district. Of the 30 member banks in the state of Wyoming at the time of the creat ion of the district, 28 have petitioned to be taken out of the Kans as City district and included within the Chicago district. Of the stock in the reserve bank allotted to the Nebraska banks, those holding 94 per cent thereof, have joined in the petition for removal; and of the stock allotted to the Wyoming banks, those holding 94.4 percent thereof have joined in the petition for removal. This practical unanimity on the part of the member banks of the territory comprising these two states, furni shes the strongest evidence that the inclusion of these states withi n the Kansas City district was not ordered with a due regar d to the convenience and customary course of trade, and calls stron gly upon this Board to take the territory out of the Kansas City district, and include it within the Chicago district. The foregoing facts not only call for the applicatio n of the controlling principle of decision as fixed by Congr ess in the Act, but they also illustrate the wisdom of the rule. As the business of Nebraska and Wyoming banks has been so much with Chicago and so little with Kansas City, it is clear that the Chicago bankers are familiar with the business conditions of the territory named, and familiar with its commercial paper and acquainted with its bankers. The Reserve Bank at Chicago could get from any leadi ng Chicago bank, information respecting individual officers, bank s or commercial paper of Nebraska and Wyoming. While at Kans as City, the opposite would be true. The wisdom of joining this territory to the Chicago district and the value of such action in insur ing to the territory named the benefits of the new system, are too manifest to need extended discussion. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 11 4. The movement of commerce originating in Nebraska and Wyoming is easterly to and through Omaha to Chicago, and not southerly to or through Kansas City. The certificate of the Union Pacific Railroad Company shows that for the period between July 1st, 1913, and December 31st, 1913, of the total tonnage originating on the Union Pacific Railroad in the states of Nebraska, Colorado and Wyoming destined to points on or beyond the Missouri River, 474,961 tons, or 87.1 per cent of the total, moved to or beyond the Missouri River at Omaha; while only 63,281 tons, or IT.6 per cent of the total, moved to or beyond the Missouri River at Kansas City; the remaining 1.3 per cent going through other junctions. The certificate of the Chicago, Burlington & Quincy Railroad Company shows that of the principal commodities originating in Nebraska and Wyoming transported on Burlington lines and destined to points on or beyond the Missouri River, about 67 per cent moved to or beyond the Missouri River crossing at Omaha, while only about 16 per cent moved to or beyond the Missouri River at Kansas City. The certificate of the Chicago & Northwestern Railroad Company shows that of the east-bound business originating upon the lines of that company in the states of Nebraska and Wyoming, less than 3 per cent thereof is destined to Kansas City, the market centers for the traffic on this line being Omaha and Chicago. The certificates of said railroad companies referred to are on file with this Board, and copies thereof are attached to this brief as Exhibits "D","E" and "F". 5. The showing as to the passenger service maintained by the railroads between Nebraska and Wyoming points and Chicago and between said points and Kansas City, emphasizes the trend of business. From Nebraska and Wyoming points there are but seven http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 12 through passenger services into Kansas City daily; three upon the lines of the Union Pacific through Denver which do not touch Nebraska points at all, and two trains daily over each of two branches of the Burlington system. With this through service, but a small part either of Nebraska or Wyoming, is served directly. In striking contrast to this through service to Kansas City, is the through service maintained between Nebraska and Wyoming points and Chicago. There are a total of twenty fast passenger trains operated daily through Nebraska and Wyoming to Chicago. and this total is supplemented by seven through locals from said points to Omaha and Chicago, these locals being fed by one hundred and thirteen local trains coming into Omaha daily. (See certificate of E. V. Parrish, the original of which is on file with this Board and a copy of which is attached hereto as Exhibit "G.") 6. The mail facilities between Nebraska and Wyoming points and Chicago, are infinitely superior to the facilities between those points and Kansas City. Between Chicago and western points through the states of Nebraska and Wyoming, twenty through mail services are scheduled daily and these are supplemented by local through mail trains; feeding these through mail trains daily are eighteen local mails which are collected in all parts of the two states and which are picked up each day by the through mail trains. In addition, the through mail trains collect pouches at all stations. This gives a grand total of forty-one mails daily. Between Kansas City and Nebraska and Wyoming points, there are but twelve mails daily, six through and six local. The local trains drain only a small part of the territory, while four of the six through mails drain only small sections of the Nebraska and Wyoming territory. (See certificate of E. V. Parrish, the original of which is on file with the Board and copy of which is attached hereto as Exhibit liG51.) http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 13 In the light of the foregoing facts, it must be clearly recognized that the convenient and customary course of business from Nebraska and Wyoming territory is easterly to Chicago and not southerly to Kansas City; and that this course of trade is so pronounced that it cannot be ignored when this Board is to determine, upon this review, the question whether this territory should be annexed to the Chicago district; especially when this determination is to be under the controlling principle that the boundaries of the districts should be fixed with due regard to the convenient and customary course of business. ** The statement of the Organization Committee relative to its decision whereby the territory comprising the states of Nebraska and Wyoming, was included within the Kansas City district, is found on pages 369 and 370 of the letter from the Organization Committee transmitting documents and information to the President of the Senate. With the considerations which determined the location of a reserve bank at Kansas City, we have no concern. The statement of the Committee, however, does not indicate that Nebraska and Wyoming were included within the Kansas City district because the course of business of that territory was with Kansas City. The Committee, after reciting that of the 218 banks which expressed a first preference for Omaha, 191 were from Nebraska, says: "The Committee had to consider the state of Oklahoma and part of Missouri in connection with this region * Thus the Committee apparently felt under compulsion to include Nebraska and Wyoming in a district with the state of Oklahoma and part of Missouri. The considerations which compelled this joinder are not stated by the Committee but certainly they were not such that gave due regard to the customary course of http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 14 business because the customary course of business in the state of Oklahoma is in a channel widely different from that in which flows the current of business from Nebraska and Wyoming. The Committee further says: "The only other thing that could have been done with Nebraska under the conditions that presented thems elves, was to relate her to Chicago and this seemed to be inadv isable under the circumstances." What the considerations were which made it seem to the Committee inadvisable to include Nebraska with the Chicago district, are not stated. Certainly it was not the considerat ion of the customary course of business, since it is entirely clear that this consideration would urge for the inclusion of Nebraska within the Chicago district. If it was fear that if Nebraska and Wyoming should be included within the Chicago district it would make the bank at Chicago too large, we submit that the fear was groundless and that such a consideration was not sufficient to over-ride the consideration based upon the customary course of business. The New York bank, as created by the Committee, will have a capital stock of over $2o,000,000. The Chicago bank, as created by the Committee, will have a capital stock of over $12,000,000. The inclusion of Nebraska and Wyoming within the Chicago district would add to the Chicago bank, but one tenth of its present capital. New York is the recognized financial center of the country, while Chicago is the second great financial center. Surely a Chicago bank with $14,000,000 of capital is not disproportionate to a New York bank with $20,000,000 of capital; and it would seem to be equal ly clear that a Chicago bank with $14,000,000 of capital would not be disproportionate to the Philadelphia and Cleveland banks with $12,000,000 of capital each. We submit, therefore, that there is nothing in the size of the Chicago bank, even with the territory of Nebraska http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 15 and Wyoming included, which places this Board under any compulsion to include that territory in the Kansas City district. Again, the Committee further says speaking of this Kansas City district: "The relations of that territory on the whole are much more largely with Kansas City than with any other city in the Middle West with which it could have been connected." It may be true that the course of business from the larger part of the district is to Kansas City. But it is equally true that the customary course of business from Nebraska and Wyoming is to Chicago. When we are dealing with so large a unit as Nebraska and Wyoming, it is the customary course of business of those states to which the Act refers in requiring that due regard thereto shall be given in establishing the district. Nebraska and Wyoming might have been added to the Dallas district and it would still be true that the course of business of the Dallas district on the whole would be to Dallas. These states might have been added to the Minneapolis or Atlanta district and it would still be true that the course of business of each district on the whole would be to the reserve city. But in each case Nebraska and Wyoming could, with justice, claim that due regard had not been given to the course of business of those states in establishing the district. Nebraska and Wyoming have a right to the application of the rule fixed by Congress as a controlling principle of decision in the creation of a district which is to include those states. The exclusion of these states from a district which would allow their business to flow in its accustomed channels and the inclusion of them in a district which would unduly force their business into unaccustomed and artificial channels, is not justified by the fact that on the whole the business of the latter district usually goes to the reserve city. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 16 On this application, we are not seeking to change the location of any reserve bank. We do not, in this application, question the decision of the Committee by which a reserve bank was located at Kansas City; all that the petitioners ask is that this board apply the controlling principle of decision, as announced in the Act of Congress, and recognize the fact that a long continued customary course of business in the states of Nebraska and Wyoming has been with Chicago, and that due regard thereto requires that this territory be taken from the Kansas City district and annexed to the Chicago district. These petitions are not presented to the Board in any captious sectional or spirit. The unanimity of the request negatives such an inference. To be successful, the new banking system should recognize and fit into established currents of trade and not unduly disturb them. It is in this spirit and to secure this result that these petitions have been presented. All of which is respectfully submitted. HENRY W. YATES, Pres. Nebraska National Bank, Omaha FRED H. DAVIS, . Pres. First National Bank, Omaha LUTHER DRAKE, Pres. Merchants' National Bank, Omaha Committee. WILLIAM D. McHuGH, Omaha, Counsel. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Exhibit "A" Listed Correspondents reported by Bankers Encyclopedia Published in New York City, September, 1914. Nebraska 220 National Banks. Correspondents Adams, First National Bank New York, Irving National Bank Lincoln, First National Bank Lincoln, City National Bank St. Joseph, Mo., Stock Yards Bank Ainsworth, Nat'l Bank of Ainsworth New York, Chase National Bank. Chicago, Merch. Loan & Trust Co Omaha, First National Bank Albion, Albion National Bank New York, Chase National Bank. Chicago, First National Bank Omaha, Omaha National Bank South Omaha, Stock Yards Nat'l. Bnk. Albion, First National Bank New York, Hanover National Bank. Chicago, Cont'l. & Coml. Nat'l. Bank Omaha, First National Bank South Omaha, Live Stock Nat'l. Bank Allen, First National Bank New York, National City Bank. Omaha, Merchants National Bank Sioux City, First National Bank Alliance, Alliance National Bank New York, National City Bank. Chicago National Bank of Rep. Omaha, First National Bank South Omaha, Stock Yards Nat'l. Bnk. Alliance First National Bank New York, Chase National Bank. Chicago, Cont'l. & Com'l. Nat'l. Bank Omaha, Omaha National Bank South Omaha, Stock Yards Nat'l. Bnk. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 18 Amherst, First National Bank New York, Hanover National Bank. Omaha, Omaha National Bank Ansley, First National Bank New York, Chase National Bank. Omaha, Omaha National Bank Omaha, First National Bank South Omaha, Stock Yards Nat'l. Bnk. Arlington, First National Bank New York, Chemical National Bank Chicago, Cont'!. & Coml. Nat'l. Bank Omaha, Omaha National Bank Omaha, City National Bank Ashland, National Bank of New York, Chemical National Bank Chicago, Cont'l. & Com'I. Nat'l. Bank Omaha, Merchants National Bank Omaha, United States National Bank Atkinson, First National Bank New York, Chase National Bank. Chicago, National City Bank Omaha, United States National Bark Omaha, First National Bank Auburn, Carson National Bank New York, Kountze Bros. Chicago, Cont'l. & Coml. Nat'l. Bank Omaha, Omaha National Bank St. Joseph, Tootle-Lemon Nat'l. Bank Auburn, First National Bank New York, Hanover National Bank. Kansas City, Drovers National Bank Omaha, Omaha National Bank Aurora, Aurora National Bank New York, First National Bank Chicago, Corn Exchange Nat'l. Bank Omaha, City National Bank Aurora, Fidelity National Bank Chicago, Cont'!. & Coml. Nat'l. Bank Omaha, Omaha National Bank http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 19 Aurora, First National Bank New York, Hanover National Bank. Chicago, First National Bank Omaha, United States National Bank South Omaha, Stock Yards Nat'l Bnk. Bancroft, First National Bank New York, Natl. Bank of Commerce Omaha, Omaha National Bank Omaha, Merchants National Bank South Omaha, Stock Yards Nat'l Bnk. Sioux City, First National Bank Bayard, First National Bank Omaha, First National Bank Lincoln, First National Bank South Omaha, Packers National Bank Bazile Mills, First National Bank Omaha, Omaha National Bank Beatrice, Beatrice National Bank New York, Hanover National Bank. Chicago, Cont'l. & Com'l. Nat'l. Bank Omaha, Merchants National Bank South Omaha, Stock Yards Nat'l Bnk Beatrice, First National Bank New York, First National Bank Chicago, First National Bank Omaha, Omaha National Bank Lincoln, City National Bank Beerner, First National Bank New York, Hanover National Bank. Chicago, First National Bank Omaha, Omaha National Bank Belden, First National Bank New York, Hanover National Bank. Chicago, Con't. & Corn'!. Natl. Bank Omaha, United States National Bank Sioux City, First National Bank Benedict, First National Bank Chicago, Con't. & Coml. Natl. Bank York, First National Bank http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 20 Bertrand, First National Bank New York, Seaboard National Bank Chicago, Con't. & Coml. Natl. Bank Omaha, Omaha National Bank Blair, Blair National Bank New York, Chemical National Bank New York, National City Bank Chicago, Con't. & Com'I. Natl. Bank Omaha, Omaha National Bank South Omaha, Stock Yards Nat'l Bnk. Blue Hill, First National Bank New York, Hanover National Bank. Omaha, Omaha National Bank Bradshaw, First National Bank New York, Hanover National Bank. York, First National Bank Bridgeport, First National Bank New York, Hanover National Bank. Omaha, Omaha National Bank South Omaha, Stock Yards Nat'l Bnb. Bristow, First National Bank Omaha, Omaha National Bank Norfolk, Norfolk National Bank Spencer, First National Bank Broken Bow, Custer National Bank New York, Chase National Bank. Omaha, Omaha National Bank Omaha, City National Bank Brunswick, First National Bank New York, Chase National Bank. Chicago, Con't. & Com'I. Natl. Bank Sioux City, Live Stock National Bank Sioux City, First National Bank Burwell, First National Bank New York, Hanover National Bank. Omaha, Omaha National Bank Omaha, Merchants National Bank Lincoln, First National Bank http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 21 Butte, First National Bank New York, Kountze Bros. Chicago, Con't. & Com'l. Natl. Bank Omaha, United States National Bank Sioux City, First National Bank Callaway, First National Bank New York, Chase National Bank. Omaha, United States National Bank Cambridge, First National Bank New York, Hanover National Bank. Lincoln, First National Bank Omaha, Omaha National Bank Kansas City, Drovers National Bank Carroll, First National Bank Chicago, Con't. & Com'l. Natl. Bank Sioux City, Security National Bank Omaha, United States National Bank Fremont, First National Bank Central City, Central City Nat'l Bank New York, National City Bank. Chicago, Con't. & Com'l. Natl. Bank South Omaha, Stock Yards Nat'l. Bn'k. Omaha, First National Bank Chadron, First National Bank New York, Hanover National Bank. Chicago, First National Bank Omaha, Omaha National Bank Omaha, First National Bank South Omaha, Stock Yards Nat'l. Bnrk. Chappell, First National Bank New York, National Park Bank Omaha, United States National Bank Clarks, First National Bank New York, Hanover National Bank. Omaha, United States National Bank Omaha, Omaha National Bank South Omaha, Stock Yards Nat'l. Bnk. Coleridge, Coleridge National Bank New York, National Park Bank Sioux City, Security National Bank Omaha, Omaha National Bank Omaha, First National Bank http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 22 Coleridge, First National Bank New York, Hanover National Bank. Chicago, Con't. & Com'l. Natl. Bank Omaha, United States National Bank Sioux City, First National Bank Columbus, Commercial National Bank New York, National City Bank. Omaha, United States National Bank South Omaha, Stock Yards Nat'l. link. Columbus First National Bank New York, First National Bank Chicago, Con't. & Coml. Natl. Bank Omaha, Omaha National Bank Columbus, German National Bank New York, National Park Bank Chicago, Con't. & Com'l. Natl. Bank Omaha, Merchants National Bank Cozad, First National Bank Chicago, Con't. & Com'l. Natl. Bank Omaha, Omaha National Bank Craig, First National Bank Chicago, Con't. & Com'l. Natl. Bank Omaha, City National Bank Omaha, Merchants National Bank Crawford, First National Bank New York, Hanover National Bank. Chicago, Con't. & Coml. Natl. Bank Omaha, Omaha National Bank South Omaha, Stock Yards Nat'l. Bnk. Creighton, Creighton National Bank New York, Seaboard National Bank Omaha, United States National Bank Crete, City National Bank New York, National City Bank. Chicago, First National Bank Omaha, Omaha National Bank Lincoln, City National Bank Crete, First National Bank New York, National Park Bank Chicago, Corn Exchange Nat'l. Bank Omaha, United States National Bank • http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 23 Crofton, First National Bank New York, Hanover National Bank. Omaha, Omaha National Bank Omaha, City National Bank Sioux City, First National Bank David City, Central Nebr. Nat'l Bank New York, National Park Bank Chicago, First National Bank Omaha, United States National Bank David City, City National Bank New York, National City Bank. Chicago, Con't. & Com'l. Natl. Bank Omaha, Omaha National Bank Lincoln, First National Bank David City, First National Bank New York, Chase National Bank. Omaha, Omaha National Bank Omaha, Merchants & Nebr. Natl. Bank Lincoln, City National Bank Decatur, First National Bank New York, Hanover National Bank. Omaha, Omaha National Bank Dodge, First National Bank New York, Hanover National Bank. Omaha, First National Bank Omaha, United States National Bank South Omaha, Live Stock Nat'l. Bank Elgin, First National Bank New York, Kountze Bros. Omaha, First National Bank Omaha, Omaha National Bank Elwood, First National Bank New York, Chemical National Bank Omaha, United States National Bank Lincoln, National Bank of Commerce Emerson, First National Bank Chicago, Con't. & Com'l. Natl. Bank Sioux City, National Bank of Corn. South Omaha, Stock Yards Nat'l Bnk. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 24 Fairbury, Fars. & Merch. Nat'l Bank New York, Hanover National Bank. St. Joseph, Burnes National Bank Fairbury, First National Bank New York, National City Bank. Chicago, First National Bank St. Joseph, Tootle-Lemon Nat'l. Bank Falls City, First National Bank New York, First National Bank Chicago, Cont'l. & Com'I. Nat'l. Bank Omaha, Omaha National Bank St. Joseph, Tootle-Lemon Nat'l. Bank Kansas City, First National Bank Fremont, Commercial National Bank New York, First National Bank Chicago, First National Bank Omaha, Merchants National Bank Fremont, Fars. & Merch. Nat'l Bank New York, Hanover National Bank. Chicago, Corn Exchange Nat'l. Bank Omaha, United States National Bank Fremont, 'First National ,Bank New York, Chase National Bank. Chicago, Con't. & Com'l. Natl. Bank St. Louis, Third National Bank South Omaha, Stock Yards Nat'l Bnk. Fremont, Fremont National Bank New York, Chemical National Bank Chicago, Con't. & Coml. Nat'l. Bank Omaha, Omaha National Bank Friend, First National Bank New York, National Park Bank Chicago, First National Bank Lincoln, National Bank of Commerce Omaha, Omaha National Bank Fullerton, First National Bank New York, Chase National Bank. Omaha, Omaha National Bank Omaha, United States National Bank Lincoln, First National Bank http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 25 Fullerton, Fullerton,'National Bank --Genoa, First National Bank New York, National City Bank. Chicago, Cont'l. & Com'I. Nat'l. Bank Omaha, First National Bank New York, National City Bank. Omaha, Omaha National Bank Omaha, First National Bank Genoa, Genoa National Bank New York, First National Bank Omaha, United States National Bank Omaha, Merchants National Bank Gering, First National Bank New York, Chase National Bank. Chicago, First National Bank Omaha, First National Bank Gering, National Bank, Gering Omaha, Merchants National Bank Scottsbluff National Bank Gordon, First National Bank New York, Imp. & Traders Natl. Bank Chicago, Cont'!. & Com'I. Nat'l. Bank Sioux City, First National Bank South Omaha, Stock Yards Nat'l Bnk. Gothenburg, Citizens Nat'l Bank New York, Hanover National Bank. Chicago, Cont'l. & Coml. Nat'l. Bank Omaha, First National Bank Omaha, Omaha National Bank Gothenburg,.Gothenburg Nat'l Bank New York, Chase National Bank. Chicago, First National Bank Omaha, United States National Bank South Omaha, Stock Yards Nat'l. Bnk. Lincoln & Denver, First National Bnks. Grand Island, First National Bank New York, Amer. Exchange Natl. Bk. Chicago, Con't. & Coml. Nat'l. Bank Omaha, United States National Bank http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 26 Grand Island, Grand Island Nat'l Bk. New York, National Park Bank Chicago, First National Bank Omaha, First National Bank Kansas City, S. W. Natl. Bk. of Corn. South Omaha, Stock Yards Nat'l. Bnk. Greeley, First National Bank Chicago, Con't. & Com'l. Nat'l. Bank Omaha, United States National Bank South Omaha, Packers National Bank Greenwood, First National Bank New York, Hanover National Bank. Chicago, Con't. & Coml. Nat'l. Bank Omaha, First National Bank Gresham, First National Bank New York, Hanover National Bank. Chicago, First National Bank Omaha, First National Bank South Omaha, Stock Yards Nat'l. Bnlz. Hampton First National Bank New York, Chemical National Bank Omaha, Merchants National Bank Omaha, First National Bank Harrison, First National Bank Chicago, Con't. & Coml. Nat'l. Bank South Omaha, Stock Yards Nat'l. Bnk. Omaha, Nebraska National Bank Hartington, First National Bank New York, Hanover National Bank. Chicago, Con't. & Coml. Nat'l. Bank Omaha, Omaha National Bank Omaha, United States National Bank Hartington, Hartington Nat'l Bank New York, Chase National Bank. Omaha, First National Bank Sioux City, Security National Bank http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 27 Hastings, Exchange National Bank New York, Chemical National Bank Chicago, Con't. & Coml. Nat'l. Bank Chicago, Corn Exchange Nat'l. Bank Omaha, United States National Bank Omaha, City National Bank Hastings, First National Bank New York, National Park Bank Chicago, First National Bank St. Joseph, Tootle-Lemon Nat'l. Bank Omaha, Omaha National Bank Denver, United States National Bank Hastings, German National Bank New York, National City Bank. Chicago, Con't. & Coml. Nat'l. Bank Omaha, Merchants National Bank Kansas City, Interstate National Bank Havelock, First National Bank New York, Hanover National Bank. Lincoln, Central National Bank Omaha, Omaha National Bank Hayes Center, First National Bank New York, National City Bank. Omaha, Omaha National Bank Hay Springs, First National Bank Chicago, Con't. & Com'l. Nat'l. Bank Omaha, Omaha National Bank Omaha, Nebraska National Bank Hebron, First National Bank New York Amer. Exchange Nat'l. Bk. Omaha, Nebraska National Bank Omaha, Omaha National Bank Lincoln, First National Bank Reiningford, First National Bank Omaha, First National Bank South Omaha, Packers National Bank Lincoln, National Bank of Commerce http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 28 Holdrege, First National Bank New York, Seaboard National Bank Chicago, First National Bank Omaha, Omaha National Bank Hooper, First National Bank New York, Hanover National Bank. Omaha, First National Bank Omaha, Omaha National Bank South Omaha, Stock Yards Nat'l Bnk. Humboldt, Nat'l Bank of Humboldt New York, National City Bank. Kansas City, National Reserve Bank Kansas City, Drovers National Bank St. Joseph, German-Amer. Nat'l. Bank Humphrey, First National Bank New York, Hanover National Bank. Chicago, Corn Exchange Nat'l. Bank Omaha, Omaha National Bank Imperial, First National Bank New York, Hanover National Bank. Omaha, First National Bank Lincoln, First National Bank Lincoln, National Bank of Commerce Johnson, First National Bank New York, National Park Bank Omaha, Omaha National Bank St. Joseph, Tootle-Lemon Nat'l. Bank Johnson, German National Bank New York, Citizens Cent. National Bk. Omaha, United States National Bank South Omaha, Stock Yards Nat'l Bnk. St. Joseph, First National Bank Kearney, Central National Bank New York, Hanover National Bank. Chicago, Corn Exchange Nat'l. Bank Omaha, Omaha National Bank Kearney, City National Bank New York, Chemical National Bank Chicago, Con't. & Coml. Nat'l. Bank Omaha, First National Bank South Omaha, Stock Yards Nat'l Bnk. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 29 Laurel, First National Bank New York, Hanover National Bank. Chicago, Con't. & Com'l. Nat'l. Bank Omaha, United States National Bank Sioux City, First National Bank Laurel, Laurel National Bank Chicago, Con't. & Com'I. Nat'l. Bank Omaha, Corn Exchange National Bank Omaha, United States National Bank Sioux City, Second National Bank Leigh, First National Bank New York, Natl. Bank of Commerce Omaha, First National Bank South Omaha, Stock Yards Nat'l Bnk. Lexington, Dawson County Nat'l Bk. New York, Chemical National Bank Omaha, Omaha National Bank Lexington, First National Bank New York, Chemical National Bank Omaha, United States National Bank Omaha, Merchants National Bank South Omaha, Stock Yards Nat'l Bnk. Lincoln, Central National Bank New York, Hanover National Bank. Chicago, Con't. & Com'l. Nat'l. Bank Kansas City, New Eng. Nat'l. Bank Lincoln, , City National Bank New York, Hanover National Bank. Chicago, Con't. & Coml. Nat'l. Bank Omaha, First National Bank Lincoln, First National Bank New York, Chemical National Bank Chicago, First National Bank Chicago, Con't. & Com'I. Nat'l. Bank Lincoln, National Bank of Commerce New York, Mech. & Metals Nat'l. Bank Chicago, Con't. & Com'I. Nat'l. Bank St. Louis, Median. Amer. Nat'l. Bank Omaha, Nebraska National Bank http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 30 Litchfield, First National Bank New York, Chemical National Bank Chicago, Con't. & Com'l. Nat'l. Bank Omaha, Omaha National Bank Loomis, First National Bank New York, Chase National Bank. Chicago, Con't. & Com'I. Nat'l. Bank Omaha, Omaha National Bank Lincoln, First National Bank Loup City, First National Bank New York, Seaboard National Bank Omaha, Omaha National Bank Omaha, United States National Bank Lynch, First National Bank South Omaha, Stock Yards Nat'l Bnk. Norfolk, Norfolk National Bank Omaha, United States National Bank Shenandoah, First National Bank Lyons, First National Bank Chicago, Con't. & Com'I. Nat'l. Bank Omaha, Merchants National Bank Omaha, City National Bank Sioux City, First National Bank Madison, Farmers National Bank New York, Chase National Bank. Chicago, Con't. & Com'I. Nat'l. Bank Omaha, Merchants National Bank Lincoln, National Bank of Commerce Madison, First National Bank New York, National City Bank. Chicago, First National Bank Omaha, Omaha National Bank South Omaha, Stock Yards Nat'l Bnk. Madison, Madison National Bank New York, Merch. Exch. Nat'l. Bank Omaha, First National Bank South- Omaha, Stock Yards Nat'l Bnk. Omaha, City National Bank http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 31 Marquette, First National Bank New York, Hanover National Bank. Omaha, Merchants National Bank South Omaha, Stock Yards Nat'l Bnki McCook, Citizens National Bank New York, Chemical National Bank Omaha, United States National Bank Lincoln, First National Bank St. Joseph, First National Bank McCook, First National Bank New York, Hanover National Bank. Chicago, Corn Exchange Nat'l. Bank Omaha, Nebraska National Bank Omaha, Omaha National Bank McCook, McCook National Bank New York, Merch. Exch. Nat'l. Bank Chicago, First National Bank St. Joseph, Tootle-Lemon Nat'l. Bank Omaha, First National Bank Lincoln, National Bank of Commerce Minden, First National Bank New York, Natl. Bank of Commerce Omaha, First National Bank Omaha, Omaha National Bank Lincoln, Central National Bank Minden, Exchange National Bank Chicago, First National Bank Omaha, United States National Bank Lincoln, First National Bank Mitchell, First National Bank New York, National Park Bank Chicago, Con't. & Com'l. Nat'l. Bank Omaha, Corn Exchange National Bank South Omaha, Stock Yards Nat'l Bnk. Morrill, First National Bank Chicago, Con't. & Com'l. Nat'l. Bank Chicago, Corn Exchange Nat'l. Bank Naper, First National Bank New York, Kountze Bros. Omaha, First National Bank http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 32 Nebraska City, Nebr. City Nat'l Bank New York, Natl. Bank of Commerce Chicago National Bank of Rep. Omaha, Omaha National Bank South Omaha, Stock Yards Nat'l Bnk Nebraska City, Otoe County Nat'l Bk. New York, Imp. & Traders Nat'l. Bank Chicago, First National Bank Omaha, City National Bank Neligh, Neligh National Bank New York, Chase National Bank. Chicago, First National Bank Omaha, United States National Bank Newman Grove, First National Bank New York, Chase National Bank. Chicago, Con't. & Coml. Nat'l. Bank Omaha, Omaha National Bank Omaha, City National Bank Norfolk, Citizens National Bank New York, Chase National Bank. Chicago, First National Bank Omaha, United States National Bank Sioux City, National Bank of Corn. Norfolk, Norfolk National Bank New York, Chemical National Bank Chicago, Con't. & Com'l. Nat'l. Bank Chicago, Corn Exchange Nat'l. Bank Omaha, Omaha National Bank Sioux City, Security National Bank North Bend, First National Bank New York, National City Bank. Omaha, Omaha National Bank South Omaha, Live Stock Nat'l. Bank Nebraska City, Merchants Nat'l Bank New York, Chemical National Bank Chicago, Con't. & Com'l. Nat'l. Bank Omaha, Merchants National Bank http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 33 North Bend, Nat'l Bk. of North Bend New York, Chase National Bank. Chicago, Con't. & Coml. Nat'l. Bank Omaha, United States National Bank Omaha, First National Bank South Omaha, Stock Yards Nat'l Bill:, North Platte, First National Bank New York, National City Bank. Chicago, Con't. & Com'l. Nat'l. Bank Omaha, Omaha National Bank South Omaha, Stock Yards Nat'l Bnk. Oakland, Fars. & Merch. Nat'l Bank New York, Chase National Bank. Omaha, Merchants National Bank Omaha, United States National Bank South Omaha, Stock Yards Nat'l Bnk. Oakland, First National Bank New York, Hanover National Bank. Chicago, First National Bank Omaha, First National Bank Lincoln, First National Bank Sioux City, Security National Bank Omaha, City National Bank N. Y., Chatham & Phoenix Nat'l. Bk. Chicago, National City Bank St. Louis, Central National Bank Omaha, Corn Exchange Nat'l Bank New York, Hanover National Bank. New York, Natl. Bank of Commerce Chicago, Con't. & Coml. Nat'l. Bank Chicago, National City Bank St. Louis, National Bank of Commerce Omaha, First National Bank New York, Kountze Bros. New York, National Park Bank Chicago National Bank of Rep. Chicago, Con't. & Coml. Nat'l. Bank St. Louis, Third National Bank http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 34 Omaha, Merchants National Bank New York, National City Bank. Chicago, Con't. & Com'l. Nat'l. Bank Philadelphia, First National Bank St. Louis, Third National Bank Omaha, Nebraska National Bank New York, Hanover National Bank. New York, Imp. & Traders Nat'l. Bank Chicago, Con't. & Coml. Nat'l. Bank Omaha, Omaha National Bank New York, Chemical National Bank Chicago, First National Bank Chicago, Con't. & Coml. Nat'l. Bank Philadelphia, First National Bank St. Louis, Mechan. Amer. Nat'l. Bank Boston, First National Bank Omaha, United States Nat'l Bank New York, Amer. Exchange Nat'l. Bk. New York, Chase National Bank. Chicago, Corn Exchange Nat'l. Bank Chicago, Con't. & Corn'!. Nat'l. Bank Chicago, Corn Exchange Nat'l. Bank St. Louis, Merch.-Laclede Nat'l. Bank San. Fran., Ang. & Lon. Paris Nat. Bk. O'Neill, First National Bank New York, Chase National Bank. Chicago, National City Bank Omaha, First National Bank South Omaha, Stock Yards Nat'l Bnk. Sioux City, First National Bank O'Neill, O'Neill National Bank New York, Chase National Bank. Omaha, Omaha National Bank Sioux City, Security National Bank Ord, First National Bank New York, National Park Bank Omaha, United States National Bank Lincoln, First National Bank South Omaha, Stock Yards Nat'l Bn http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 35 Orleans, Citizens National Bank New York, Kountze Bros. Omaha, First National Bank St. Joseph, Tootle-Lemon Nat'l. Bank Lincoln, National Bank of Commerce Osceola, First National Baank New York, National City Bank. Chicago, Con't. & Coml. Nat'l. Bank Omaha, First National Bank South Omaha, Stock Yards Nat'l. Bank Oshkosh, First National Bank New York, National Park Bank Omaha, United States National Bank Overton, First National Bank New York, Hanover National Bank. Omaha, Merchants National Bank South Omaha, Stock Yards Nat'l. Bank Pawnee City, Farmers National Bank New York, Hanover National Bank. Chicago, Con't. & Corn'!. Nat'l. Bank Lincoln, First National Bank St. Joseph, First National Bank South Omaha, Stock Yards Nat'l Bnk. Kansas City, Interstate National Bank Pender, First National Bank New York, Chase National Bank. Omaha, Omaha National Bank Sioux City, First National Bank South Omaha, Stock Yards Nat'l Bnk. Pender, Pender National Bank Chicago, First National Bank Omaha, First National Bank Omaha, United States National Bank Sioux City, Security National Bank South Omaha, Packers National Bank Pilger, Farmers National Bank New York, National Park Bank Omaha, Omaha National Bank http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 36 Pilger, First National Bank New York, Hanover National Bank. Omaha, United States National Bank Plainview, First National Bank New York, Chase National Bank. Chicago, Con't. & Com'I. Nat'l. Bank Omaha, Merchants National Bank South Omaha, Stock Yards Nat'l. Bank Sioux City, First National Bank Plattsmouth, First National Bank New York, Chemical National Bank Chicago, First National Bank Omaha, Omaha National Bank Randolph, First National Bank Chicago, First National Bank Omaha, First National Bank Sioux City, National Bank of Corn. Sioux City, Security National Bank Randolph, Security National Bank New York, National Park Bank Chicago, Con't. & Com'l. Nat'l. Bank Sioux City, First National Bank Omaha, Merchants National Bank South Omaha, Stock Yards Nat'l. Bank Rushville, Stockmen's National Bank Chicago, Con't. & Com'I. Nat'l. Bank South Omaha, Stock Yards Nat'l. Bank Schuyler, First National Bank New York, Chase National Bank. • Omaha, Merchants National Bank Schuyler, Schuyler National Bank New York, Chemical National Bank Chicago, First National Bank Omaha, United States National Bank Omaha, Omaha National Bank South Omaha, Packers National Bank Scottsbluff, First National Bank New York, Chase National Bank. Omaha, United States National Bank South Omaha, Stock Yards Nat'l. Bank http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 37 Scottsbluff, Scottsbluff National Bank New York, Natl. Bank of Commerce Omaha, First National Bank Denver, First National Bank South Omaha, Live Stock Nat'l. Bank Scribner, First National Bank New York, Natl. Bank of Commerce Omaha, United States National Bank South Omaha, Stock Yards Nat'l. Bank Seward, First National Bank New York, National City Bank. Chicago, Con't. & Com'l. Nat'l. Bank Omaha, Merchants National Bank South Omaha, Stock Yards Nat'l. Bnk. Seward, Jones National Bank New York, Chemical National Bank Chicago, First National Bank South Omaha, Stock Yards Nat'l. Bank Shelby, First National Bank New York, National City Bank. Chicago, Con't. & Com'I. Nat'l. Bank Omaha, First National Batik Lincoln, First National Bank Sidney, First National Bank New York, Hanover National Bank. Chicago, Con't. & Com'l. Nat'l. Bank Omaha, First National Bank Omaha, City National Bank =South Omaha, Live Stock Nat'l Bank New York, Hanover National Bank. Chicago, National City Bank Chicago, Drovers National Bank St. Louis, Central National Bank South Omaha, Packers Nat'l Bank New York, Mech. & Metals Nat'l. Bk. Chicago, Fort. Dearborn Nat'l. Bank Chicago, Corn Exchange Nat'l. Bank St. Louis, Mechan. Amer. Nat'l. Bank Omaha, Merchants National Bank http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 38 South Omaha, Stock Yards Nat'l Bk. New York, National Park Bank New York, National City Bank. New York, Natl. Bank of Commerce Chicago, Con't. & Coml. Nat'l. Bank Chicago, Live Stock National Bank St. Louis, Mercantile National Bank St. Louis, Mechan. Amer. Nat'l. Bank St. Louis, National Bank of Commerc Kansas City, New Eng. Nat'l. Bank Kansas City, Interstate National Baill Spencer, First National Bank New York, National City Bank. Chicago, Con't. & Coml. Nat'l. Bank. Omaha, Omaha National Bank Omaha, Merchants National Bank Sioux City, First National Bank St. Edward, First National Bank N. Y., Chatham & Phenix Nat'l. Ball' Chicago, Con't. & Coml. Nat'l. Bank Omaha, Omaha National Bank , South Omaha, Stock Yards Nat'l. Ba1 St. Edward, Smith National Bank New York, Chase National Bank. Omaha, First National Bank South Omaha, Stock Yards Nat'l. Barr,- Stanton, First National Bank New York, Chemical National Bant Chicago, First National Bank Omaha, Omaha National Bank South Omaha, Stock Yards Nat'l. Ban/, Stanton, Stanton National Bank Chicago, Con't. & Coml. Nat'l. Bank Omaha, Omaha National Bank Stromsburg, First National Bank New York, Merch.-Exch. Nat'l. Bank Chicago, First National Bank Omaha, First National Bank Omaha, United States National Baill‘ Lincoln, Central National Bank http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis III 39 Stuart, First National Bank New York, National Park Bank Omaha, Omaha National Bank South Omaha, Stock Yards Nat'l. Bank Syracuse, First National Bank New York, Merchants National Bank Chicago, Con't. & Com'I. Nat'l. Bank Omaha, United States National Bank Lincoln, National Bank of Commerce Tecumseh, Citizens National Bank New York, National Park Bank Omaha, United States National Bank St. Joseph, First National Bank Lincoln, City National Bank T ecumseh, Tecumseh National Bank New York, Hanover National Bank. Lincoln, First National Bank St. Joseph, Tootle-Lemon Nat'l. Bank Tekamah, First National Bank New York, First National Bank Omaha, Omaha National Bank Chicago, First National Bank St. Paul, Merchants National Bank Tilden, First National Bank New York National Bank Chicago, Con't. & Com'I. Nat'l. Bank Omaha, United States National Bank loi-en, Tilden National Bank New York, Kountze Bros. Chicago, Merch. Loan & Trust Co. Omaha, First National Bank South Omaha, Stock Yards Nat'l. Bank Trenton, First National Bank New York, Hanover National Bank. Chicago, Con't. & Com'I. Nat'l. Bank Lincoln, First National Bank South Omaha, Stock Yards Nat'l. Bank http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 40 University Place, First Nat'l Bank New York, Citizens Central Nat'l Bk. Lincoln, First National Bank Lincoln, National Bank of Commerce Omaha, United States National Bank Utica, First National Bank New York, Hanover National Bank. Chicago, Con't. & Coml. Nat'l. Bank South Omaha, Stock Yards Nat'l. Bank Valentine, First National Bank New York, Irving National Bank Chicago, Con't. & Coml. Nat'l. Bank' Omaha, First National Bank Sioux City, First National Bank Lincoln, First National Bank Wahoo, First National Bank New York, National City Bank. Omaha, Omaha & U. S. National Bks• Lincoln, First & Cent. National Batils South Omaha, Stock Yards Nat'l. Bank Wahoo, Saunders County Nat'l. Bank New York, Amer.-Exch. Nat'l. Bank Chicago, First National Bank Lincoln, First National Bank Omaha, Merchants National Bank Wakefield, Farmers National Bank New York, Chase National Bank. Omaha, United States National Bank Sioux City, First National Bank Wakefield, First National Bank New York, National Park Bank Sioux City, Security National Bank • Omaha, First National Bank Walthill, First National Bank New York, Chase National Bank. Omaha, Omaha National Bank Sioux City, Security National Bank Sioux City, First National Bank Omaha, Stock Yards National Bank http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 41 Walthill, Walthill National Bank Chicago, Con't. & Com'l. Nat'l. Bank Omaha, United States National Bank Wausa, Commercial National Bank New York, Chemical National Bank Omaha, Merchants National Bank Sioux City, Security National Bank Wausa, First National Bank New York, National Park Bank Chicago, Con't. & Coml. Nat'l. Bank Sioux City, First National Bank Omaha, First National Bank Wayne, Citizens National Bank New York, National Park Bank Chicago, Con't. & Com'l. Nat'l. Bank Omaha, First National Bank Sioux City, Security National Bank Wayne, First National Bank New York, Chemical National Bank Chicago National Bank of Rep. Omaha, United States National Bank Sioux City, First National Bank South Omaha, Stock Yards Nat'l. Bank Weeping Water, City National Bank Omaha, United States National Bank Omaha, Corn Exchange National Bank Lincoln, City National Bank West Point, First National Bank New York, Hanover National Bank. Omaha, Nebraska National Bank South Omaha, Live Stock Nat'l- Bank West Point, West Point Nat'l Bank New York, Chemical National Bank Omaha, Omaha National Bank Omaha, United States National Bank fiber, National Bank of Wilber New York, Hanover National Bank. Omaha, First National Bank Omaha, Omaha National Bank Lincoln, City National Bank http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 42 Wilcox, First National Bank Chicago, First National Bank Omaha, United States National Bank St. Joseph, Ger.-Amer. National Bank Winnebago, First National Bank New York, Chase National Bank. Sioux City, Security National Bank Omaha, Omaha National Bank Wisner, Citizens National Bank New York, Natl. Bank of Commerce Omaha, Omaha National Bank South Omaha, Stock Yards Nat'l. Bank Wisner, First National Bank New York, Hanover National Bank. Chicago, Con't. & Com'l. Nat'l. Bank Omaha, United States National Bank Wolbach, First National Bank New York, Hanover National Bank. Lincoln, City National Bank Omaha, Corn Exchange National Bank Wood River, First National Bank New York, Chase National Bank. Omaha, Omaha National Bank Omaha, United States National Bank South Omaha, Stock Yards Nat'l. Banl, Wymore, First National Bank New York, Kountze Bros. Chicago, Con't. & Com'I. Nat'l. Ban St. Joseph, Tootle-Lemon Nat'l. Ball!' Wynot, First National Bank Chicago, Con't. & Com'I. Nat'l. Bank Omaha, Merchants National Bank Sioux City, First National Bank York, City National Bank New York, Chase National Bank. Chicago, Corn Exchange Nat'l. Ban" Omaha, Omaha National Bank Lincoln, National Bank of Commerce York, First National Bank New York, Chemical National Bank Chicago, First National Bank Omaha, Merchants National Bank http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 43 SUMMARY. Omaha New York Chicago.... Lincoln Sioux City St. Joseph St. Louis Kansas City http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 199 194 136 39 36 17 11 m EXHIBIT "B" Listed Correspondents reported by Bankers Encyclopedia Published in New York City September, 1914. Wyoming 32 National Banks Correspondents. Buffalo, First National Bank New York, Liberty National Bank Omaha, Omaha National Bank South Omaha, Stock Yards Nat'l. Bk. Casper, Casper National Bank New York, National City Bank Omaha, Omaha National Bank South Omaha, Stock Yards Nat'l. Bk. Casper, Stockmen's National Bank New York, National Park Bank Chicago, Fort. Dearborn Nat'l Bank Omaha, First National Bank South Omaha, Stock Yards Nat'l Bk. Casper, Wyoming National Bank New York City, National City Bank Omaha, United States National Bank Cheyenne, Citizens National Bank New York, Chase National Bank Chicago, Con't. & Com'l. Nat'l. Bank Denver, Colorado National Bank Omaha, Merchants National Bank Cheyenne, First National Bank New York, National Bk. of Commerce Chicago, Con't. & Com'l. Nat'l. Bank Omaha, Omaha National Bank Denver, First National Bank Cheyenne, Stock Growers Nat'l. Bank New York, National Bk. of Commerce Chicago, First National Bank Denver, Denver National Bank South Omaha, Stock Yards Nat'l Bk. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis .• C. 45 Cody, First National Bank New York, Chase National Bank Omaha, United States National Bank South Omaha, Stock Yards Nat'l. Bk. Cody, Shoshone National Bank New York, Hanover National Bank Chicago, Con't. & Com'l. Nat'l. Bank Omaha, Omaha National Bank Douglas, Douglas National Bank New York, National Park Bank Omaha, Omaha National Bank South Omaha, Stock Yards Nat'l. Bk. Douglas, First National Bank Chicago, Con't. & Com'l. Nat'l. Bank Boston, National Shawmut Bank South Omaha, Stock Yards Nat'l. Bk. Evanston, Evanston National Bank New York, National Bk. of Commerce Omaha, Omaha National Bank Salt Lake City, National Copper Bk. tvanston, First National Bank New York, National City Bank Omaha, United States National Bank Salt Lake City, Coml. Nat'l. Bank South Omaha, Stock Yards Nat'l. Bk. ICernmerer, First National Bank New York, Co. & Iron National Bank Omaha, Omaha National Bank Salt Lake City, Con't. National Bank South Omaha, Stock Yards Nat'l. Bk. Lander, First National Bank New York, Chase National Bank New York, Hanover National Bank Chicago, First National Bank Denver, First National Bank Omaha, Omaha National Bank 'cc rce Laramie, Albany County National Bk. New York, National Bk. of Commerce Chicago, Con't. & Com'I. Nat'l. Bank Kansas City, S. W. Nat'l Bk. of Corn. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 46 Laramie, First National Bank New York, Chase National Bank New York, Hanover National Bank Chicago, First National Bank Denver, First National Bank Omaha, National Bank, Omaha Meeteetse, First National Bank New York, Hanover National Bank Omaha, Omaha National Bank Newcastle, First National Bank New York, National Bk. of Commerce Omaha, United States National Bank Cheyenne, First National Bank Powell, First National Bank Chicago, Fort Dearborn Nat'l Bank Omaha, Omaha National Bank Billings, Bank of Montana Powell, Powell National Bank New York, National Park Bank Omaha, United States National Billings, Merchants National Bank Rawlins, First National Bank New York, Chase National Bank Chicago, Con't. 8z Com'l. Nat'l. Bank Omaha, United States National Banlc Denver, Hamilton National Bank Rawlins, Rawlins National Bank New York, Hanover National Bank Chicago, First National Bank Omaha, United States National Batik Denver, United States National Bank Rawlins, Stock Growers National Bank New York, National City Bank Chicago, Con't. & Com'l. Nat'l. Bank Omaha, Omaha National Bank Denver, First National Bank Rocksprings, First National Bank New York, National Bk. of Commerce Chicago, Con't. & Com'l. Nat'l. Bank Omaha, Omaha National Bank Salt Lake City, Con't. National BanU http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 47 Rocksprings, Rocksprings National Bk. New York, Hanover National Bank Chicago, Con't. & Com'l. Nat'l. Bank Omaha & Denver, U. S. Nat'l. Bank ce 11( Sheridan, First National Bank New York, Chemical Nat'l Bank Chicago, Con't. & Com'I. Nat'l. Bank Omaha, United States National Bank Denver, First National Bank Sheridan, Sheridan National Bank New York, Chase National Bank Chicago, National City Bank Omaha, Omaha National Bank Denver, Hamilton National Bank Denver, U. S. National Bank Shoshoni, First National Bank New York, Nat'l City Bank Chicago, Grovers National Bank Omaha, Omaha National Bank Cheyenne, Stock Growers Nat'l Bank Thermopolis, First National Bank New York, Hanover National Bank Chicago, Con't. & Coml. Nat'l. Bank Omaha, Omaha National Bank al( Torrington, al4 First National Bank Worland, First National Bank rCe http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Chicago, Corn Exchange Nat'l. Bank Omaha, Omaha National Bank Omaha, Corn Exchange Nat'l Bank New York, Hanover National Bank Omaha, Nebraska National Bank Summary Omaha NewYork Chicago Kansas City 31 29 20 48 Exhibit "C" List of Nebraska Banks Furnishing statistics of items received drawn on Omaha, Nebraska; Chicago, Illinois; Sioux City, Iowa; and Kansas City, Missouri; and drafts drawn against same points. National Bank of Ainsworth First National Bank First National Bank Alliance National Bank First National Bank First National Bank First National Bank National Bank of Ashland First National Bank Aurora National Bank Fidelity National Bank First National Bank First National Bank First National Bank First National Bank First National Bank First National Bank First National Bank Blair National Bank First National Bank Central National Bank First National Bank First National Bank First National Bank First National Bank First National Bank http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Ainsworth Albion Allen Alliance Amherst Ansley Arlington Ashland Atkinson Aurora Aurora Aurora Bancroft Bayard Bazile Mills Belden Benedict Bertrand Blair Bristow Broken Bow Burwell Butte Campbell Carroll Cedar Rapids 49 Central City National Bank First National Bank Coleridge National Bank First National Bank Commercial National Bank First National Bank German National Bank First National Bank First National Bank City National Bank First National Bank Creighton National Bank First National Bank Central Nebraska National Bank City National Bank First National Bank First National Bank First National Bank First National Bank First National Bank Commercial National Bank First National Bank Fremont National Bank Farmers & Merchants National Bank First National Bank First National Bank Fullerton National Bank First National Bank Genoa National Bank First National Bank Gering National Bank First National Bank Citizens National Bank Gothenburg National Bank http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Central City Chappell Coleridge Coleridge Columbus Columbus Columbus Cozad Crawford Crete Crete Creighton Crofton David City David City David City Decatur Dodge Elgin Emerson Fremont Fremont Fremont Fremont Friend Fullerton Fullerton Genoa Genoa Gering Gering Gordon Gothenburg Gothenburg 50 First National Bank First National Bank First National Bank First National Bank Hartington National Bank First National Bank First National Bank First National Bank First National Bank First National Bank First National Bank First National Bank First National Bank German National Bank City National Bank First National Bank Laurel National Bank Dawson County National Bank First National Bank First National Bank First National Bank Citizens National Bank First National Bank McCook National Bank First National Bank First National Bank First National Bank Minden Exchange National Bank First National Bank First National Bank Nebraska City National Bank Otoe County National Bank Merchants National Bank Neligh National Bank http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Grand Island Greeley Harrison Hartington Hartington Hastings Hayes Center Hay Springs Hebron Hemingford Hooper Humphrey Imperial Johnson Kearney Laurel Laurel Lexington Lexington Litchfield Lynch McCook McCook McCook Madison Marquette Minden Minden Mitchell Naper Nebraska City Nebraska City Nebraska City Neligh 51 First National Bank Norfolk National Bank First National Bank National Bank of North Bend First National Bank Farmers & Merchants National Bank First National Bank First National Bank O'Neill National Bank First National Bank Citizens National Bank First National Bank First National Bank Pender National Bank First National Bank Farmers National Bank First National Bank First National Bank First National Bank Stockmen's National Bank First National Bank Smith National Bank First National Bank Schuyler National Bank Scottsbluff National Bank First National Bank First National Bank Jones National Bank First National Bank First National Bank First National Bank First National Bank First National Bank First National Bank http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Newman Grove Norfolk North Bend North Bend North Platte Oakland Oakland O'Neill O'Neill Ord Orleans Osceola Overton Pender Pender Pilger Plainview Plattsmouth Randolph Rushville St. Edward St. Edward Sargent Schuyler Scottsbluff Scottsbluff Seward Seward Spalding Shelby Spencer Stanton Stromsburg Stuart 52 First National Bank First National Bank First National Bank Tilden National Bank First National Bank First National Bank First National Bank First National Bank Saunders County National Bank Farmers National Bank First National Bank Walthill National Bank First National Bank First National Bank First National Bank Citizens National Bank West Point National Bank First National Bank First National Bank First National Bank First National Bank First National Bank First National Bank City National Bank First National Bank Syracuse Tekamah Tilden Tilden University Place Utica Valentine Wahoo Wahoo Wakefield Wakefield Walthill Walthill Wausa Wayne Wayne West Point West Point Winnebago Wisner Wood River Wymore Wynot York York List of Wyoming Banks Furnishing statistics of items received drawn on Omaha, Nebraska; Chicago, Illinois; Sioux City, Iowa; and Kansas City, Missouri; and drafts drawn against same points. First National Bank Stockmen's National Bank Citizens National Bank http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Buffalo Casper Cheyenne 53 First National Bank First National Bank First National Bank First National Bank First National Bank First National Bank Sheridan National Bank First National Bank First National Bank First National Bank First National Bank http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Cheyenne Douglas Evanston Lander Rawlins Rock Springs Sheridan Shoshone Thermopolis Torrington Worland 54 Exhibit "D" I, Chas. J. Lane, do hereby certify that I am General Freight Agent of the Union Pacific Railroad Company; that for the period between July 1st, 1913, and December 31st, 1913, of the total tonnage originating on the Union Pacific in the states of Nebraska, Colorado and Wyoming destined to points on or beyond the Missouri River, 474,961 tons or 87.1 per cent of the total moved to or beyond the Missouri River at Omaha, while only 63,281 tons or 11.6 per cent of the total, moved to or beyond the Missouri River at Kansas City the remaining 1.3 per cent going through other junctions. Dated, this ioth day of November, 1914. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis CHAS. J. LANE. 55 Exhibit "E" Carloads handled by the C. B. & Q. from Nebr. & Colo. Fiscal Year June 30, 1913. Omaha, November i ith, 1914 Mr. H. W. Yates, President Nebraska National Bank, Omaha, Nebraska. Dear Sir: In accordance with your request of even date, I wish to advise that the following is a statement of cars of the commodities named, handled by the Chicago, Burlington & Quincy, having origin in the states of Nebraska and Wyoming and having destinations Omaha and east, St. Joseph and Kansas City for the fiscal year ending June 30th, 1913. Live Stock Grain Gravel and sand Dairy Products . Hay Feed TOTAL http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Omaha 21410 14141 9245 1529 4101 St. Joseph 9668 Kansas Ctiy 4520 1435 7581 168 338 11103 50764 Yours truly, H. H. HOLCOMB 12269 56 Exhibit "F" Omaha, Neb., October 19th, 1914. Dear Sir: Answering your inquiry as to the percentage of eastbound business originating on this company's lines in the States of Wyoming and Nebraska destined to Kansas City; I have to say that very little business originating on this company's lines in these states is destined to Kansas City, probably less than three per cent, the market centers being Omaha and Chicago. Yours respectfully, F. WALTERS, General Manager. Mr. Luther Drake, President Merchants Nat'l. Bank, Omaha, Nebraska. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 57 Exhibit "G" I, E. V. Parrish do hereby certify that I am Manager of the Bureau of Publicity of the Commercial Club of Omaha, Nebraska; that I have examined and am familiar with the passenger and mail service maintained by the railroads between Nebraska and Wyoming Points and Chicago and between Nebraska and Wyoming points and Kansas City; that from Nebraska and Wyoming points there are but seven through passenger services into Kansas City daily, three upon the lines of the Union Pacific through Denver which do not touch Nebraska points at all, and two trains daily over each of two branches of the Burlington system; with this through service, but a small part either of Nebraska or Wyoming is served directly. There is a total of twenty fast passenger trains operated daily through Nebraska and Wyoming to Chicago, and this total is supplemented by seven through locals from said points to Omaha and Chicago, these locals being fed by One Hundred and Thirteen local trains coming into Omaha daily. Between Chicago and western points through the states of Nebraska and Wyoming, twenty through mail services are scheduled daily and these are supplemented by local through mail trains and feeding these through mail trains daily, are eighteen local mails Which are collected in all points of the two states and which are picked up each day by the through mail trains. In addition, the through mail trains collect pouches at all stations. This gives a total of forty-one mails daily. Between Kansas City and Nebraska Points, there are but twelve mails daily, six through and six local. The local trains drain only a small part of the territory, while four of the said six through mail trains drain only small sections of Nebraska and Wyoming territory. E. V. PARRISH. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis COPY OF PETITION http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 59 Omaha, Nebraska. To the Federal Reserve Board, Washington, D. C. Gentlemen: The undersigned as committee, hereby present to your honorable body, the petitions of the following named banks: Nebraska List of Banks Joining in Petition to the Federal Reserve Board To Be Transferred From the Kansas City Federal Reserve District To the Chicago District. First National Bank National Bank of Ainsworth Albion National Bank First National Bank First National Bank Alliance National Bank First National Bank First National Bank First National Bank First National Bank National Bank of Ashland First National Bank Aurora National Bank Fidelity National Bank First National Bank First National Bank First National Bank First National Bank http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Adams Ainsworth Albion Albion Allen Alliance Alliance Amherst Ansley Arlington Ashland Atkinson Aurora Aurora Aurora Bancroft Bayard Bazile Mills 60 Beatrice National Bank First National Bank First National Bank First National Bank First National Bank First National Bank Blair National Bank First National Bank First National Bank First National Bank Custer National Bank First National Bank First National Bank First National Bank First National Bank First National Bank Central City National Bank First National Bank First National Bank First National Bank First National Bank Coleridge National Bank Commercial National Bank German National Bank First National Bank First National Bank First National Bank First National Bank Creighton National Bank First National Bank City National Bank First National Bank Central Nebraska National Bank http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Beatrice Beatrice Beemer Belden Benedict Bertrand Blair Bradshaw Bridgeport Bristow Broken Bow Brunswick Burwell Butte Callaway Carroll Central City Chadron Chappell Clarks Coleridge Coleridge Columbus Columbus Columbus Cozad Craig Crawford Creighton Crete Crete Crofton David City 61 City National Bank First National Bank First National Bank First National Bank First National Bank First National Bank First National Bank Farmers & Merchants National Bank First National Bank Commercial National Bank Fremont National Bank First National Bank First National Bank Fullerton National Bank Genoa National Bank First National Bank Gering National Bank First National Bank First National Bank Citizens National Bank Gothenburg National Bank First National Bank Grand Island National Bank First National Bank First National Bank First National Bank First National Bank First National Bank Hartington National Bank First National Bank First National Bank Exchange National Bank First National Bank http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis David City David City Decatur Dodge Elgin Elwood Emerson Fremont Fremont Fremont Fremont Friend Fullerton Fullerton Genoa Genoa Gering Gering Gordon Gothenburg Gothenburg Grand Island Grand Island Greeley Greenwood Gresham Hampton Harrison Hartington Hartington Hastings Hastings Hayes Center 62 First National Bank First National Bank First National Bank First National Bank First National Bank First National Bank First National Bank German National Bank Central National Bank City National Bank Laurel National Bank First National Bank First National Bank Dawson County National Bank First National Bank Central National Bank First National Bank First National Bank First National Bank First National Bank First National Bank First National Bank First National Bank Madison National Bank Farmers National Bank First National Bank Citizens National Bank McCook National Bank First National Bank Minden Exchange National Bank First National Bank First National Bank First National Bank First National Bank http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Hay Springs Hebron Hemingford Holdrege Hooper Humphrey Imperial Johnson Kearney Kearney Laurel Laurel Leigh Lexington Lexington Lincoln Lincoln Litchfield Loomis Loup City Lynch Lyons Madison Madison Madison Marquette McCook McCook McCook Minden Minden Mitchell Morrill Napier 63 Merchants National Bank Nebraska City National Bank Otoe County National Bank Neligh National Bank First National Bank Norfolk National Bank Citizens National Bank First National Bank First National Bank First National Bank Farmers & Merchants National Bank City National Bank Omaha National Bank Nebraska National Bank Merchants National Bank U. S. National Bank First National Bank Corn Exchange National Bank First National Bank O'Neill National Bank First National Bank Citizens National Bank First National Bank First National Bank Fender National Bank First National Bank Farmers National Bank First National Bank First National Bank First National Bank First National Bank Security National Bank Stockmen's National Bank Schuyler National Bank http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Nebraska City Nebraska City Nebraska City Neligh Newman Grove Norfolk Norfolk North Bend North Platte Oakland Oakland Omaha Omaha Omaha Omaha Omaha Omaha Omaha O'Neill O'Neill Ord Orleans Osceola Oshkosh Pender Fender Pilger Pilger Plainview Plattsmouth Randolph Randolph Rushville Schuyler 64 First National Bank First National Bank Scottsbluff National Bank First National Bank First National Bank Jones National Bank First National Bank First National Bank Packers National Bank Live Stock National Bank Stock Yards National Bank First National Bank First National Bank Stanton National Bank First National Bank Smith National Bank First National Bank First National Bank First National Bank Citizens National Bank Tecumseh National Bank First National Bank First National Bank Tilden National Bank First National Bank First National Bank First National Bank First National Bank First National Bank Saunders County National Bank First National Bank Farmers National Bank Walthill National Bank First National Bank http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Schuyler Scottsbluff Scottsbluff Scribner Seward Seward Shelby Sidney South Omaha South Omaha South Omaha Spencer Stanton Stanton St. Edward St. Edward Stromsburg Stuart Syracuse Tecumseh Tecumseh Tekamah Tilden Tilden Trenton University Place Utica Valentine Wahoo Wahoo Wakefield Wakefield Walthill Walthill 65 First National Bank Commercial National Bank First National Bank Citizens National Bank City National Bank West Point National Bank First National Bank National Bank of Wilber First National Bank First National Bank Citizens National Bank First National Bank First National Bank First National Bank First National Bank First National Bank City National Bank Wausa Wausa Wayne Wayne Weeping Water West Point West Point Wilber Wilcox Winnebago Wisner Wisner Wood River Wymore Wynot York York Wyoming List of Banks Joining in Petition to the Federal Reserve Board To Be Transferred From the Kansas City Federal Reserve District To the Chicago District. First National Bank Casper National Bank Stockmen's National Bank Citizens National Bank Stock Growers National Bank First National Bank First National Bank Shoshone National Bank http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Buffalo Casper Casper Cheyenne Cheyenne Cheyenne Cody Cody 66 Douglas National Bank First National Bank Evanston National Bank First National Bank First National Bank Albany County National Bank First National Bank First National Bank First National Bank First National Bank Rawlins National Bank Stock Growers National Bank Rock Springs National Bank First National Bank First National Bank Sheridan National Bank First National Bank First National Bank First National Bank First National Bank Douglas Douglas Evanston Evanston Lander Laramie Laramie Meeteetse Newcastle Rawlins Rawlins Rawlins Rock Springs Rock Springs Sheridan Sheridan Shoshone Thermopolis Torrington Worland These banks comprise more than two-thirds of the member banks in the territory of Nebraska and Wyoming, and the petitions are in each instance, signed by a duly authorized officer of the petitioning bank. These petitioners pray that this honorable body will review the determination of the Organization Committee appointed and acting under the Act of Congress known as the "Federal Reserve Act," in so far as the said Organization Committee included territory comprising the states of Nebraska and Wyoming within the apportionment of Federal Reserve District Number Ten (Kansas City) and failed to include the said territory within Federal Reserve District http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 67 Number Seven (Chicago); and the said petitioners pray that this Board by proper order, provide that the territory comprising the states of Nebraska and Wyoming, be taken out of the said Federal Reserve District Number Ten (Kansas City), and annexed to Federal Reserve District Number Seven (Chicago). The ground and reason of the petition is, that the customary course of business participated in by Nebraska and -Wyoming, is almost entirely east and west, and that but a small fraction thereof pursues a north and south course. The business of Nebraska and Wyoming centers very largely in Chicago, while the business between Kansas City and this territory, is of small consequence. As the customary course of the business of Nebraska and Wyoming is toward Chicago, and such a very small proportion thereof is carried to Kansas City, the petitioners claim that the inclusion of Nebraska and Wyoming within the Reserve District Number Ten, was not ;n conformity with the spirit or provision of the Act of Congress known as the "Federal Reserve Act," in that the inclusion of said territory within said district under the circumstances, failed to give due regard to the convenience and customary course of business done in said territory. The facilities for the transaction of business and of travel between Nebraska and Wyoming and Chicago, are very much superior and more extensive than those between the territory mentioned and Kansas City. The original petitions signed as aforesaid, are attached and submitted herewith. The petitioners therefore pray that such action may be taken by your honorable body, as will review the organization of the districts mentioned, and re-apportion the said districts so that the territory comprising Nebraska and Wyoming, will be taken out of http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 68 the said District Number Ten (Kansas City), and annexed to said District Number Seven (Chicago). HENRY W. YATES, Prest. Nebraska National Bank of Omaha. LUTHER DRAKE, President Merchants' National Bank of Omaha. F. H. DAVIS, President First National Bank, Omaha. Committee. WILLIAM D. McHuGH, Omaha, Counsel. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis BEFORE THE FEDERAL RESERVE BOARD IN THE MATTER OF THE PETITION OF BANKERS IN NEBRASKA AND WYOMING ASKING THAT THE TERRITORY COMPRISING THE SAID STATES BE TAKEN OUT OF FEDERAL RESERVE http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis DISTRICT NUMBER TEN AND BE ANNEXED TO , FEDERAL RESERVE DISTRICT NUMBER SEVEN. Abstract of Parts of Testimony Before Organization Committee and Brief and Argument on Behalf of the Federal Reserve Bank of Kansas City in Reply to Brief in Support of Petition. ROBINSON & GOODRICH, Attorneys for Federal Reserve Bank of Kansas City. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis . Before the Federal Reserve Board IN THE MATTER OF THE PETITION OF BANKERS IN NEBRASKA AND WYOMING ASKING THAT THE TERRITORY COMPRISING. THE SAID STATES BE TAKEN OUT OF FEDERAL RESERVE DISTRICT NUMBER TEN AND BE ANNEXED TO FEDERAL RESERVE DISTRICT NUMBER SEVEN. ABSTRACT OF PARTS OF THE TESTIMONY. Extracts from Testimony Heard at Lincoln, Nebraska. Witness Allen W. Field testified (p. 2028): "More than ninety per cent of the national banks in Nebraska keep accounts with Lincoln banks, showing that making Lincoln a Federal Reserve city would be following the customary course of business." (P. 2030.) "There would be no purpose and no intention to contend that Omaha has not even a larger business, even in our own State, than Lincoln. We have only shown that we have business connections with so large a per cent to show that it is perfectly feasible and in the line of ordinary trade, or else they would not be doing business with us at all at this time." "Now referring to the fact that was suggested, you say, Would not Chicago show a larger per cent? I think very likely. I am not an expert on that line, but I think very likely. I think perhaps New York would show an equally large per cent, because the tendency at all times under the old banking act was to concentrate the sources in the central cities; and it is exactly the reverse of the theory, as we under- http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 2 stand, of the present law. It is intended to segregate the banking capital." (P. 2031.) "So that when you undertake to establish that by .the present business I think you will not establish nor locate a single reserve district where there would not be cities outside of your district where a much larger per cent of the banks doing business within that district would prefer to be connected with, than any bank or any city that you can locate within the district. There would be rare exceptions on that, of course." The Secretary of the Treasury: "it would be hopeless and perfectly useless for some of the cities now having relations with Chicago to insist upon the maintenance of these relations, because the law requires a severance of some of those relations; but the purpose of the law is to establish this banking system in such a way, as I said before, to conserve in the largest degree the customary course of business then within the given districts." (P. 2034.) The Secretary of the Treasury: "It is not intended to alter the course of trade, but to alter the course of the exchange between the banks. You see there is no alteration in the courses of trade in the sense that you refer to, because what goes to Omaha and to Lincoln now will continue to go there. Cattle will be sold in Omaha and Lincoln, if that is a cattle market, just as before. But these banks are simply going to hold their reserves and deal very largely with the bank exchanges and rediscounting facilities. So the point, of course, is to locate that bank where, as an adjunct to trade and commerce within the distrct, it will be most convenient and will serve its purpose in the highest degree." Mr. Field (p. 2035): The cattle movement in the southern part of this State is largely to Kansas City or St. Joe, because they can always get money accommodations from there. That is about the principal reason." id* The Secretary of the Treasury: "Don't they go there because that is the market where they can sell their stuff?" Mr. Field: "Yes, sir; it is the market, because they have had the money." http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3 Mr. Field: "The exports from this great agricultural district will seek a market south, as well as east. Our products will hunt further outlets than the eastern markets. They will go through the Panama Canal and will go through the Gulf of Mexico. so that we will have a trade relation north and south, as well as east and west, in this district." Mr. Field (p. .2037): "This Federal District that must be made up in some way from territory from Nebraska, Kansas, Iowa, Missouri, South Dakota, Montana, Wyoming, and Colorado will be of necessity overwhelmingly an agricultural district." (P. 2038.) "While the predominate interest in this Federal District will be agricultural, it is that interest which should be principally considered in the formation of this district and the location of the Federal Reserve city. Nebraska stands out prominently as a representative of purely agricultural interests. It has practically no mining interests. Its manufacturing interests are in their infancy. Its agricultural interests can be realized only by a consideration of its growth and the volume and value of its products." (P. 2043.) "Of course, under the conditions as they have been in the past, business in the trade of this district is not with Lincoln, nor is it with Omaha, nor is it with any city particularly within the district. It has gone outside of the district, and it will go; but why should that have any effect or bearing upon the proposition of establishing a bank? When it comes to the location of a reserve bank, is not the place which is the most accessible and most easily reached in the entire district the proper and fit place for such a bank to be located?" L. E. Wettling, accountant for the Attorney General and the Railroad Commission, testified that Wyoming has no direct railroad connections with the twin cities, and that its natural territory is toward the Missouri River through Lincoln. And Walter S. Whitten, secretary of the Lincoln Commercial Club, testified (p. 2062): "I would not want to undertake to argue that the volume of business in Lincoln is greater than that in Missouri River towns that are contending for one of these regional banks, nor that there is any particular territory that is ours exclusively. The territory that surrounds Lincoln is also strongly competitive territory for Omaha, Sioux City, http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 4 St. Joe, and Kansas City, and in the western part of it with Denver." (P. 2063.) "To Kansas City we have three direct lines" (railroads). W. S. Mellor, secretary of the Nebraska State Board of Agriculture, testified (p. 2074): The Secretary of the Treasury. "Now, Mr. Mellor, you referred in your paper to the 1910 values of live stock on Nebraska farms as being something over $220,000,000 where was this handled?" Mr. Mellor: "This was handled at South Omaha." Ward M. Burgess, wholesale dry-goods merchant, testified (p. 2081): * * * "Wyoming belongs to Omaha and to Nebraska as a distributing proposition. We have direct lines in Wyomipg, and we do the business into Wyomi,ng as against every other center." John C. French, cashier of the Stock Yards National Bank, South Omaha, testified (p. 2092) that of the live stock receipts Nebraska was first with nearly 50 per cent. * * * Wyoming was second. Henry W. Yates, president of the Nebraska National Bank of Omaha, testified (p. 2100): "I would like, if the Committee will allow, to refer to the question of districts. I think you asked Mr. Burgess if he thought the districts should be limited to eight and if our proposition would cover a number of eight or more. Now, I differ somewhat from some of my friends in the Omaha clearing-house in that respect. I believe that the intent of this law—which grows upon me the more I examine it—will be better served by small districts than it would be by a few large ones." * * * * (P. 2106.) "Sufficient national bank capital and surplus do not exist in the territory which might be assigned as tributary to Denver to permit of the organization of a reserve bank. To add to that district Nebraska and Kansas, or any part of them, in order to make up the deficiency, would meet with the unanimous disapproval of every business interest in the territory affected." The Secretary of the Treasury (p. 2109): "Now, for instance, will a parring of exchanges between these banks, and assuming that you had a reserve bank at Omaha, your Omaha 5 exchange would pass at par in all parts of the country, just as much so as New York exchange does now—now, with that condition of affairs there would be no reason why some exchange other than Omaha in this district would be satisfactory? Wouldn't that be true?" Mr. Yates: "That probably would be true." The Secretary of the Treasury (p. 2118): "Mr. Yates, of course our real problem here is this: this is not a question of local pride or prestige." Mr. Yates: "No." The Secretary of the Treasury: "Here is a great common problem that must be solved in the interest of all of the people of this country and not in the interest of bankers or of any particular business interest, but in the interest of every man in this country who Works for a living and everybody dependent upon him for a living. Now, we can quite understand the natural pride of these different communities and the rivalries existing between these different cities for headquarters for a bank, but the Committee is obliged to disregard that and it is obliged to ask every man who comes here to consider this proposition from the broadest national aspects and standards of pure patriotism and a desire to have it solved in the interest of all the people of the country. Now, that is the thing to which the Committee is directing its attention, and upon which we wish to get all the light we can; and it is for this reason we ask the different questions, for instance, that we have asked you about Chicago, because we are considering this as an economic problem and not as a political problem, for we do not intend to allow politics to enter into our decision. in the slightest possible degree." * * * * * * * * *. * (P. 2123.) On the theory that the larger available amount of information would be in a large city, would not that force to Chicago?" Mr. Yates: "If we should go to Chicago, what would Chicago know about Nebraska or Kansas or Colorado or Montana or Wyoming? It would know nothing, while almost any Omaha banker can tell you a great deal about it." * * * * * * * (P. 2126.) * * * * * "But Wyoming unquestionably comes to Omaha. Our railroads are run through there direct." http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 6 Frank Fowler, secretary of the Nye-Schneider-Fowler Company, of Fremont, Nebraska, testified (p. 2144): "In financing, the average business man in the main body of this district would, of course, first finance at home; next, he would go to the large town nearest him; that would be his secondary banking point. But the moment he got away from that and was facing in a large way a Missouri River bank, the main body here would take Omaha as between St. Paul and Minneapolis, Omaha and Kansas City." * * * * * "Corn is our greatest crop, and this territory represents the heart of the corn belt west of the Mississippi River or north of the M.ssouri. Corn is not a bankers' crop. It is largely stored, and a well-fixed farmer will carry it through the season, and largely it goes into live stock, which, in their turn, call on the banks for funds for the purchase of the stock and then for the purchase of the feed that goes into the stock." J. Welpton, banker, of Ogallala, testified (p. 2150): Practically all of our business is with Omaha. We keep our reserves pretty much at home." J. H. Kelley, of the Citizens' National Bank of Gothen berg, testified (p. 2152): "We have very little business in Denver; our principal business is with Omaha and with a slight account with Chicago and New York for exchange http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis purposes." L. M. Talmage, of the First National Bank .of Grand Island, Nebraska, testified (p. 2153): "Nearly all of our cattle and the trend of our business is to the Omaha market. A few of our hogs go to the St. Joe market." C. E. Burnham, banker, of Norfolk, Nebraska, testified (p. 2155): The Secretary of Agriculture: "And what would be your second choice?" Mr. Burnham: "Chicago; but in saying Chicago I do not think it would be to the interests of Nebraska to be connected with a bank there that would necessarily be so large by having to reach out and take in the territory as far West as Nebraska." Fred Volpp, of Scribner, testified (p. 2159): "We have only a small account in Chicago, and a very small account in New York. Ninety-five per• cent of our business is with 7 Omaha and that is also true of our business men and business houses." George N.Seymour, of Elgin, Nebraska, testified (p. 216o): "As to my experience, what I would have to say is, that for a quarter of a century I have lived in northern Nebraska—northeast Nebraska. I have handled cattle and hogs and grain and live stock generally, and during that time we did no business and our Omaha territory has no business to speak of outside of Omaha. I don't think that a load of hogs has been shipped to any other market than South Omaha from our territory for ten years. We used to ship our cattle to Chicago years ago, especially the heavy varieties, but the markets on the Missouri River, especially Omaha, have been so much better than former years that none of our cattle go anywhere else; and the percentage of business on the northern business in northern Nebraska on the north and Norfolk on the west is done with Omaha, especially our own localities, where it is practically all the business we do." The Secretary of the Treasury: "Is that true of the banks?" Mr. Seymour: "That is true of all the banks and true of all the territory in which we buy cattle; and I would hardly have a second choice, because we have no business to speak of, except in jobbing to a certain extent, with Chicago. I should say of our retail merchants' business 75 per cent was with Omaha and maybe 15 per cent with Chicago and ro per cent with St. Joe and Kansas City." The Secretary of the Treasury: "Well, your national banks, business men, cattlemen, and others look to Omaha?" Mr. Seymour: "Absolutely. We have no other outlet." Mr. W. S. Delano testified as follows (p. 2164): "The farmers of this State, more and more, are having a surplus fund, and heretofore in my time as a citizen-indorser I have found when distress comes this money is away in the Eastern cities. We would like to have a regional bank in Nebraska, where this money may be retained. The fact is, that we have such great wealth in these two sections, and the locations that I have given you would serve this great area in the interest of the farmers of the north Central States." The Secretary of Agriculture: "Mr. Delano, your point if these reserves that may heretofore have gone out of that is, http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 8 the section were retained in-the section, they would meet the normal necessity for industrial development, rather than scimething speculative, perhaps?" Mr. Delano. "Yes, that is the idea. I believe that we are entitled to have the money that we produce in this region retained here." The Secretary of Agriculture: "For development purposes?" Mr. Delano: "Yes, sir." The Secretary of Agriculture: "Now, that argument would apply to this great section in here?" Mr. Delano: "Yes, sir." The Secretary of Agriculture: "And it might be conserved just the same if the location were one place or another, provided it satisfied your general idea as to the area? Now, have you any particular preference for the location of such a bank?" Mr. Delano: "Well, when I take the trend of the live stock and the graining in my section of the State, and as far as I know it stops at Omaha,and there is the point where our remittances come from. I have seen the Omaha market grow from a bare cornfield to almost the second live-stock market in the world; I believe in some instances it is the second. I think our Omahu hog market is the second or nearly so; if not, it is pushing to the second place." The Secretary of Agriculture: "Where do you and your neighbors go, and where do you look for the transaction of business?" Mr. Delano: "Our grain and live stock all go to Omaha— to the live-stock market." The Secretary of the Treasury: "You think your neighbors throughout that section of the State all feel the same way about it?" Mr. DelanO: "Why, I know their business all goes there." The Secretary of the Treasury: "And you think a bank located at that point would best conserve the interest of that section of the State?" Mr. Delano: "Yes, sir." http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 9 The letter of the Beatrice Creamery Company, of Denver, at page 140 of the printed letter to the United States Senate, says that it does an annual business Of $2,000,4:300 in butter and eggs, and that at least 70 per cent of the cream used for manufacturing butter and at least 75 per cent of the eggs gathered for retailing and sale are collected and shipped to it from Kansas and Nebraska; that it draws the majority of its supplies for raw material from Kansas and Nebraska. All told, there are 250,000 cases of eggs entering annually into Denver, worth at least $1,500,000, of which 8o per cent is brought in from Kansas and Nebraska. Extracts from Testimony Heard at Denver. In support of the intimate relations existing between Denver and Wyoming, we desire to call attention to the following testimony contained in the Stenographer's Record: The testimony of J. Frank Edmonds (p. 2216): "The entire fire insurance business of * not only premiums, but the payWyoming, Denver for seven companies." (P. in handled is ment of losses, of which Denver is a center is region the 2217.) "Although in the entire country, there inhabited sparsely one of the most Mexico alone over three New and Wyoming, Colorado, are in Denver." to report which of all agents, thousand The testimony of Richard A. Malone (p. 225!): "The completion this year of the Burlington Railroad connections in Wyoming, in a through route via Denver from Seattle to Galveston, will increasingly make Denver the natural center of trade for all Wyoming." Mr. H. Van Duessen, of Rock Springs, Wyo., secretary of the Wyoming Bankers' Association, testified as follows (pp. 2294-95): http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis "I have been delegated to speak for the bankers in Wy- I0 oming. I have sounded the opinions- of the bankers through the State, and I am satisfied that the bankers and the varied interests of the State are favorable to Denver as the location of this regional, district bahk. The Northern section of bankers have done so [passed resolutions], and I have correspondence from a set of banks on the Union Pacific favorable to Denver. It is for this location. There are 103 banks in our Association, 3i of which are National banks and 72 State banks. Of the State banks, probably one-half are eligible in the event the law would perm it their subscribing to capital stock." On page 2297 he said: "We prefer Denver, because it is located in closer proximity to our State than Omaha. I presume it would change our normal current of business if we were attached to Denver rather than Omaha. The volume of our business goes east, yet,so far as the Regional Bank is concerned, we prefer to have our banking relations with a bank in Denver. My second choice would be Omaha. We have expressed no third choice I presume it would be Chicago. I would not say that with any authority, however, nor would I state it with any degree of confidence. If you will allow me to make a statement (p. 2298), not 6nly the bankers, but the business men of Wyoming have expressed themselves on this question, to some extent, through the banks, and, taking my own view and knowledge of the opinions of the business men there, I think they can be considered as a criterion of the opinions of business men in other towns in Wyoming. Rock Springs is two hundred miles from Salt Lake City, and it is four hundred miles from Denver, and I find, upon investigation, that from 75 to 90 per cent more business is conducted with Denver than with Salt Lake City. We are in this portion of Wyoming that Mr. Armstrong would include in the district of Salt Lake, the western one-third." The following facts in reference to Wyoming also appear in a letter of the Organization Committee to the United States Senate, transmitted April 29, 1914 (page 140): "Wyoming has live stock and gold interests and some agricultural interests." (P. 141.) "Denver, on account of its geographical location, superior railroad and banking facilities, has for some time been the market for the alfalfa produced in Wyoming and a part http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis II of Nebraska, and will continue to expand and come more into its own in a short time, for Denver has been assured of stopping in transit arrangements at this point on hay by railroad companies. This stopping in transit at Denver will apply to The facilhay originating in Wyoming. ities for storage of hay on any of the farms in Wyoming are totalty inadequate." Mr. George Berger, president of the Colorado National Bank, testified: "The sphere of Denver's influence .would be Colorado, Wyoming, Utah, and New Mexico." Mr. Alexis C. Foster testified (p. 22I3): "Our business is investment bonds in the city of Denver.' Our purchases in Wyoming for 1912 were $1,992,000; sales, $1,970,000; 1913 purchases, $485,000; sales, $602,000." For proof of the facts referred to herein, as far as they relate to Kansas City and are not set forth herein by specific reference, we refer to the testimony of the various witnesses heard before the Organization Committee at Kansas City, on January 23, 1914. We also refer to the summary of the same appearing on pages 174 to 181 inclusive and accompanying maps in the letter of the Organization Committee to the United States Senate, transmitted on April 29, 1914. We also direct attention to the original Brief of the Committee of the Banks of Greater Kansas City, and Brief supplemental thereto, thereafter filed with the Committee. BRIEF AND ARGUMENT. I. The Brief and Argument of the Petitioners should not be considered, inasmuch as the same are not predicated upon any testimony heard by the Organization Committee, but are http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis I2 based upon ex-parte statements compiled by the petitioners, without any opportunity for cross-examination being afforded to the opposite party. This proceeding, if we comprehend it, is not being prosecuted as a matter of original right, but is in the nature of an appeal from the action of the Organization Committee in including the territory embraced within the States of Nebraska and Wyoming in District Number Ten. It is contended that the action of the body was arbitrary and a violation of that part of Section 2 of the Federal Reserve Act which provides "that the districts shall be apportioned with due regard to the convenience and customary course of business." Under the rule of proceedure promulgated by the order of the Federal Reserve Board on August 28, 1914, it is clearly contemplated that the briefs of the parties shall be based on testimony heard before the Organization Committee, and that in reviewing what was done by the Committee, the Board will look solely to the testimony taken by and record made before the Organization Committee. Petitioners' Brief is barren of the slightest reference to any testimony heard by the Committee and should be disregarded, especially as to all recitals of alleged facts appearing therein. II. ' THE RULE ORDINARILY APPLYING TO THE FEVIEW OF THE ACTION OF BOARDS SIMILAR TO THE ORGANIZATION COMMITTEE SHOULD BE APPLIED IN THIS MATTER, and the action remain undisturbed unless it clearly appear that its decision was so arbitrary as to be palpably in disregard of the evidence, or was not made in good faith, or was the result of fraud. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 13 Bearing in mind the fact that the action of the Committee is assailed solely on the ground that.the Committee in creating District Number Ten did not have due regard for the convenience and customary course of business, we are first concerned with ascertaining what is meant by the term "due regard." According to the approved definitions, the term, as here used, means fair, just, and proper regard, under all of the facts and circumstances appearing to the Committee. Thus it will readily be seen that the action of the Committee can not and should not be set aside, unless it appear that in some manner it was guilty of some abuse of the discretion vested in it by the act of Congress. It is also necessary for this to be so apparent as to indicate a palpable disregard of its duty. In this connection the action must be measured .not solely by the situation with reference to the States of Nebraska and Wyoming, but with refernce to the duty imposed upon it of dividing into twelve separate and distinct'districts all of the territory embraced in the United States in such manner as to serve the greatest good to all and make the system as a whole most complete and effective. In the working out of such a gigantic problem, with all of its attendant complications, it is not surprising that some disappointments may have occurred. From the decision of the Organization Committee filed April 2, 1914, and the statement in relation thereto filed April 10, 1914, it is apparent that this Committee performed its most difficult task wisely and in good faith, and after full consideration of every factor that had the slightest beaming upon the situation. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 4 This is made manifest by a reference to that part of the decision of the Committee' wherein it sets forth the more important factors which governed the Committee in the determination of the districts and the selection of the cities therein. Summarized, these factors, as therein reported, are as follow: First. The ability of member-banks within the district to provide the required minimum capital. Second. The mercantile, industrial, and financial connections existing in each district, and the relations between the various portions of the district and the city selected for the location of the Federal Reserve Bank. Third. The probable ability of the Federal Reserve Bank after organization to meet the legitimate demands of business. Fourth. The fair and equitable division of the available capital of the Federal Reserve Banks among districts created. Fifth. The general geographical situation of the district, transportation lines, and the facilities for speedy connection between the Federal Reserve Bank and all portions of the district. Sixth. The population, area, and prevalent business activities of the district, whether agricultural, manufacturing, mining, or commercial, its record of growth and development in the past, and its prospects for the future. Seventh. The Committee endeavored, as far as practicable, to follow State lines. Let us now apply these factors to the facts adduced beore the Committee, and ascertain how consistent the action of the Committee was in creating District Number Ten and locating the bank therefor at Kansas City. The total capital of the Federal Reserve Bank of Kansas City, on the basis of six per cent on the total capital stock and http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 15 surplus of the assenting national banks in the district, would amount to $5,590,015. From this it will readily be seen that to create a reserve bank in this territory required either the inclusion of the State of Nebraska, or the addition of some other territory from which the required capital could be produced. The Federal Reserve Bank in Chicago, on the same basis, would have a capital stock of $12,479,876, and will be the second largest institution under the Federal Reserve System. To take from District Number Ten the territory embraced in the States of Nebraska and Wyoming would tend to bring about a most inequitable apportionment of the capital stock of the two institutions and would greatly injure and impair the efficiency of the Federal Reserve Bank in Kansas City, without any substantial, additional benefit accruing to District Number Seven. Applying these factors, it is difficult to conceive of the possibility of a district that more thoroughly corresponds to the theory proposed by the Organization Committee than does District Number Ten, especially when we consider the population and prevalent business activities of the district as a whole. From the Abstract of the Record, appearing elsewhere, it abundantly appears that the paramount and supreme industry of the State of Nebraska is that of farming and stock-raising; this is likewise true of the State of Wyoming. It is readily conceded that the most important commercial centers in District Number Ten are the cities of Omaha, Denver and Kansas City, and that the commercial and trade influence of these centers radiates therefrom and naturally draws thereto the business of its legitimate tributary trade territory. Inasmuch as this petition has to do solely with the complaint http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 16 of the banks in the States of Nebraska and Wyoming, it will be unnecessary at this time to call attention to the peculiar conditions existing at Denver which likewise exist at Kansas City, but it is extremely important that careful consideration be given to the industries and the character of business transacted at Kansas City and Omaha, to the end that it may be ascertained what similarities exist therein. It can not be denied that Omaha and Kansas City each exert an independent influence in certain zones of this district. Omaha, being the metropolis of the State of Nebraska and its principal railroad center, naturally and necessarily draws to it that portion of the business of the State of Nebraska which is most convenient and accessible to it; Kansas City performs in a like manner, but by reason of its larger size, its more diversified industries, its peculiar location with reference to other large centers, its additional transportation facilities, and for many other reasons, draws its trade from territory vastly greater than that occupied by the city of Omaha. The character of business carried on at each of these centers is surprisingly similar, even down to the smallest detail. The character of the business done at Kansas City is merely a reflection of the general character of the business industries of the States of Kansas, Oklahoma, Missouri, New Mexico, Colorado, Nebraska, and Wyoming; while the character of the business done in Omaha reflects the character of the business in the State of Nebraska and her tributary territory. We shall first enumerate the principal business activities that are centered at Kansas City, and hereafter refer to the principal business activities that are centered at Omaha, so that this similarity may be made more apparent. The facts hereinafter recited with reference to Kansas City are contained in http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 17 the testimony of the witnesses heard by the Organization Committee in its hearing at Kansas City, on January 23, 1914, and are shown by the Stenographer's Transcript of the testimony at pages 1810 to 1997, inclusive, and exhibits then filed, and are summarized in the report or printed letter from the Reserve Bank Organization Committee, transmitting to the Senate of the United States the briefs and arguments presented to such Organization Committee at the various hearings had before it. In support of the facts hereinafter recited in favor of Kansas City, we call especial attention to the testimony hereinbefore referred to and also to pages 170 to 181, inclusive, of said letter and the various maps and exhibits appearing " therein. Kansas City ranks first in proximity to the Nation's meat supply. Kansas City ranks second in the live stock industry. It ranks second in meat-packing. It ranks first in the sale of agricultural implements, in the sale of yellow pine lumber, in Pullman business, as a mule market, and as a hay market. It ranks second in primary grain receipts and railroads. It ranks third in poultry and egg business, in telegraphic business, in lumber business, and in flour output. It ranks sixth and seventh in bank clearings, seventh in postal receipt, and tenth in factory output. It has within a radius of 125 miles a population of 2,344,369, and within a radius of 250 miles a population of 8,271,050. It has a jobbing and manufacturing territory populated with 12,770,601 people. It has sixteen trunk lines of railroads, and, in addition thereto, thirty-two separate subordinate lines of railroads, supplying unsurpassed distributing facilities. These http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 18 railroads bring in and send out of Kansas City, daily, 260 passenger trains and handle an average of 2,000 cars of freight daily. It has recently constructed freight terminals which furnish the most complete and efficient plan in the world for handling the freight. It is the largest winter wheat market in the world. Grain exporters, having Kansas City for their headquarters, export more hard winter ,wheat than all other exporters in the United States combined. It is one of the most important markets for grass and field seeds in the United States and receives its seeds from fourteen different States, Nebraska and Wyoming being among the number. During the year of 1913, there was received and officially inspected in Kansas City grains of the following kinds and quantities: Wheat 33,870,000 bushels Corn. 21,928,750 Kaffir Corn bushels 1,973,000 bushels Oats 10,I74,500 bushels Rye. 458,700 bushels Barley 364,000 bushels These figures do not include the large amount of grain bought by Kansas City grain merchants, which is not stopped or inspected at Kansas City, which is conservatively estimated to be between thirty ,and thirty-five million bushels, being grain bought by Kansas City merchants, paid for through Kansas City banks in the States of Nebraska, Kansas, Missouri, and Oklahoma, which grain moves direct from the point of shipment either for export to the milling trade, or to other grain merchants for distribution, or to the consumers direct. Kansas City ranks fourth in its grain elevator capacity. Kansas City grain dealers ship large quantities of Kansas and http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 19 Nebraska hard wheat, corn and oats to the eastern seaboard. Kansas City merchants own and operate a large number of elevators in the State of Nebraska, buying grain direct from the farmer. Kansas City is the largest market and distributing point for hay in the world. It is the largest primary alfalfa market, and the States of,Nebraska and Wyoming are two of the seven greatest alfalfa-growing States. Kansas City handled during the year 1913, 7,993 horses and mules from the State of Nebraska. During the same period there were received in its stockyards 59,136 head of cattle, 137,067 hogs, and 56,207 head of sheep from the State of Nebraska. Kansas City ranks second in the meat-packing. Kansas City is the greatest stocker and feeder market in the world an during the year 1914 shipped to various localities, including the State of Nebraska, 914,000 head of such cattle of the conservative value of $50,000,000. During the year 1913 there were shipped to Kansas City, from the State of Nebraska, 1,966 cars of cattle, 2,503 cars of hogs, 280 cars of sheep, and 363 cars of horses, and there were -hipped to Nebraska from Kansas City, during the same peL iod, 767 cars of feeder cattle, the aggregate •value of which is $9,536,200. During this period, ,290,510 head of live stock were shippeA from the State of Nebraska, and sold on the live stock market in Kansas City. Kansas City merchants, representing thrity odd lines, during the same period sold in the State of Nebraska merchandise of the value of $7,065,625. Montgomery Ward & Company, one of the greatest mail order houses in the world, has within the last few years located a branch house in Kansas City, being influenced in its location by the superior railroad and mail facilities offered thereby for http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 20 the transaction of its business with customers in the West and. Southwest. The accessibility of Nebraska to Kansas City is made apparent when the figures furnished by this concern are studied. It appears therefrom that 12.3 per cent of the total business done by this concern through Kansas City was done with customers in the State .of Nebraska, while only 12.9 per cent of its business was done with customers in Missouri. Sears, Roebuck & Company, a mail order house of like magnitude,established a branch in Kansas City for similar reasons. Kansas City motor car dealers, during the year 1913, sold and distributed to customers within the State of Nebraska motor cars and motor car accessories of the aggregate value of $980,000. From the foregoing it must be apparent to the most casual investigator that Kansas City's greatness in commercial activity is the natural and direct result of its proximity and natural connection and association with the agricultural and live stock interests which exist in its natural territory. Let us now examine into the factors which contribute to Omaha's commercial industries. They are briefly referred to on pages 275 to 277, inclusive, of the letter hereinbefore mentioned. On page 275, its supporters advance, among other reasons for its selection as a location for a Federal Reserve Bank, the fact that the "trend of travel and business from the West and Southwest have centered at three conspicuous points on the Missouri River and the upper Mississippi; that from the Northwest section goes to St. Paul and Minneapolis, the central West goes to Omaha, and the Southwest to Kansas City. There can be no dispute concerning these three points— no rival claims can be advanced against them." http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis It is true this statement was made in argument and sup- port of the location of a bank at Omaha, but it is a statement made by the same bankers who are now arguing against Kansas City as a proper banking center for this district. On the same page, its champions, in setting forth its claims, refer to the following features, thereby indicating that they regard the same as the most pertinent factors for consideration in connection with the question of the proper location of the Federal Reserve District: "Nebraska's crop of wheat, oats, corn, and hay for 1912 was worth over $228,000,000. Its corn crop in 1912-exceeded the total gold production of the United States for the same year. The territory adjacent to Nebraska is one of the greatest agricultural producing territories in the world. Nebraska has 49,000,000 acres of land, 28,000,000 of which are the most productive known to the agricultural experts." Omaha is the third largest packing center in the world and is the largest sheep market, the third largest in cattle, the third largest in hog receipts, and the second largest feeder market; it is the second largest corn market in the United States; it is the fourth primary grain market in the United States; it is the largest creamery butter producing center in the world. These facts appearing in the Brief are supplemented and augmented by the oral testimony given by the various witnesses before the Organizati9n Committee at the time of the hearing at Lincoln; it is unnecessary now to refer to them with greater detail; they only confirm what is known and admitted by everybody, to-wit: That the principal industries and resources of the State of Nebraska are centered around its agricultural interests. It must also be conceded that the industries of the States of Missouri, Kansas, and Oklahoma are almost identical with http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 22 those of the States of Nebraska and Wyoming. Indeed, the industries we find in Nebraska are common to all of the other States; and while a dissimilarity exists: as in Colorado, by reason of its large mining industries, and in Kansas and Oklahoma by reason of their large gas and oil interests and the industries that have sprung up by reason thereof, all of these last-named States possess all of the characteristics that are possessed by the States of Nebraska and Wyoming. Enough has been said to justify the States of Nebraska and Wyoming being grouped with the State of Kansas, the State of Oklahoma, and that part of the State of Missouri embraced within this district. Kansas and Nebraska have always been intimately associated historically, politically, and commercially—in fact, they are as nearly alike in those things that go to make a great State as are the two proverbial peas. It would have violated history, tradition, and the customary and usual business relations to have divorced them in creating a district for a Federal Reserve Bank. The Committee doubtless experienced a most difficult and arduous task in its effort to carve out twelve separate and distinct districts that would, when created, most effectively respond to the purposes in contemplation by the law-makers when they inaugurated the new Federal Reserve System. It uses in its statement of April io, 1914, the following significant language: "The Committee realized that the division of the country into districts was far more important and complex than the designation of the reserve cities, and that the latter duty was subsidiary and relatively simple, waiving considerations of local pride or prestge. In arranging the districts, the consideration of the character and growth of industry, trade, and http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 23 banking, no less than the traditions, habits, and common understandings of the people, was much more intimately involved. "It became clear, in the hearings, that comparatively few people realized or seemed to realize what the act was intended to accomplish; what the nature and functions of the reserve banks were to be; and how little change would occur in the ordinary financial relations of the communities, the business establishments, and the individual banks. "Critics of the decision of the Committee reveal misunderstanding in these directions, and either do not know, or appear not to know, that the Federal Reserve Banks are bankers' banks and not ordinary commercial banks; that they are to hold the reserves and to clear the checks of member banks, make rediscounts for them, and engage in certain openmarket operations. As a matter of fact, the ordinary, everyday banking relations of the community, of business men, and of banks will not be greatly modified or altered. The purpose of the system is to remove artificiality, promote normal relations, and create better conditions, under which everybody will transact business. "Every city can continue to do business with individuals, firms, or corporations, within its own limits or in its own region or in any other part of the Union or the world in which it has heretofore done business. "Reserves are to be held in a new way and in new places, so far as this act controls them, but banking and business generally will no more be confined within districts than heretofore, and it is simply misleading for any city or individual to represent that the future of a city will be injuriously affected by reason of its failure to seQure a Federal Reserve Bank. Every city which has the foundations for prosperity and progress will continue to grow and expand, whether it has such a reserve bank or not, and well-informed bankers, especially, are aware of this." It also appears from the same report that the creation of a Reserve District in the middle and far West presented problems of great difficulty, as will be found from an inspection of page 22 thereof, where the conflicting contentions and pref- erences of the various States in the territory involved are http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 24 fully referred to. It was necessary to establish a Federal Bank somewhere in this region, and the Committee finally determined upon Kansas City as the proper location therefor. That its decision was wisely exercised is evidenced by the reasons it assigns therefor on pages 22 and 23 of the last-name report, as follows: "It seemed impossible to serve the great section from Kansas City to the mountains in any other way than by creating a district with Kansas City as the headquarters, or to provide for the northwest section except by creating a district with Minneapolis for headquarters. The only other thing that could be done with Nebraska under the conditions which presented themselves was to relate her with Chicago, and this seemed to be inadvisable under the circumstances. The Kansas City banks serve a very distinctive territory and would serve it more satisfactorily than St. Louis could have done. The relations of that territory on the whole are more largely with Kansas City than any other city in the middle West with which it could.have been connected. It will, of course, be recognized by those who are informed that of the four cities (Denver, Omaha, Lincoln, and Kansas City), Kansas City is the most dominant banking and business center." The original claim of Kansas City was based on the assumption that the city of Omaha would be included within the same district as Kansas City, and upon this assumption Kansas City claimed the entire State Of Nebraska as her legitimate territory. When it later appeared that there was a possibility of Omaha being placed in a district other than Kansas City, Kansas City relinquished its claim to any part of the State of Nebraska lying north of the Platte River, but the territory lying south of the Platte river it claimed, always has claimed, http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 25 and still insists was its natural territory, even as against Omaha. In reference to Wyoming, it will appear from the testimony taken before the Organization Committee at Denver that the commercial relations between that State and Denver have been especially close and intimate. This may be readily understood when it is considered that Cheyenne and Laramie, the principal cities of that State, are approximately only one hundred miles distant from the City of Denver. IV. ANSWER TO PETITIONERS' CONTENTION AS TO COURSE OF BUSINESS. The petition is predicated upon the ground that "the customary course of business participated in by Nebraska and Wyoming is almost entirely east and west, and that but a small fraction thereof pursues a north-and-south course. The business of Nebraska and Wyoming centers largely in Chicago." This allegation fails to find any substantial support in the proof produced before the Committee. On the contrary, as far as the State of Wyoming is concerned, the proof shows overwhelmingly that its business transactions, so far as they are carried on with outsiders, are carried on primarily with Denver, and secondarily with Omaha, while much of its business is done with Kansas City. The business transactions of the people of the State of Nebraska, outside of Omaha, are carried on primarily with the cities of Omaha, Kansas City, Lincoln, and St. Joseph, in the order mentioned. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The petitioners fail to distinguish between the trend of 26 commerce arid the customary course of business. It is conceded that the vast territory embraced in this district, producing, as it does, a very large part of the nation's food supply, is not sufficiently populated to consume within its borders what is produced therein, but that a very large quantity of its products must ultimately go, and be consumed, elsewhere. In this sense, the trend of commerce is to the more thickly settled districts in the East and to the Eastern seaboard, from which much of the products of the farms in Nebraska, Wyoming, Kansas, Colorado, Oklahoma, and New Mexico ultimately find their way to foreign countries. The farmer and stockraiser, whose industry and resources produce the crops and fatten the live stock, takes practically no part in putting the same into the hands of the consumer. His dealings are almost entirely with individuals residing within his immediate territory. The record fails to disclose any case where the producer deals directly with Chicago. The small producer markets his product in the first instance largely with the local dealer in his home locality, and. his connection therewith entirely ceases at that point. The local dealer disposes of the products so purchased to dealers located in the four cities aforesaid, and his connection therewith then entirely ceases. The larger producers ordinarily engage in commerce to the extent of shipping their products to the markets in the four cities aforesaid, and it is by them disposed of within this district, and they have no connection with the same thereafter. The products of the farms and pastures very largely find their way to markets within the district and are paid for within the district. The process of future marketing is, of course, carried on between people in this district and people http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 27 elsewhere. If the argument advanced by petitioners should be regarded as sound, then a Federal Reserve Bank could never be located in a district that was a producer rather than a consumer, and this large territory, producing such an enormous surplus over and above its own requirements, would not be entitled to have located anywhere within it a Reserve Bank. Banks are merely agencies in aid of carrying on this business by providing for it the conveniences of exchange, and financial assistance when required. And it is illogical to contend, that, because the banks in the large centers in the territory have a larger • volume of transactions with the city of Chicago than with each other, the customary business of any part of the district has been 'disregarded. These banks owe their existence to the nature, character, and volume of the business carried on in their respective territory. After the producer has severed his connection with his product and it has found its way into the hands of the meat-packers and the grain-dealers, all located within the district, the• latter must, of course, provide for its further marketing and these transactions make the course of money not from our banks to Chicago banks, but from Chicago banks to our banks. The big dealer pays the producer through the local bank, and he then markets the property purchased and the money paid therefor comes from Chicago and other Eastern cities. The meat, the wheat, the corn, and the flour go to the East, but the money that comes therefrom comes from the East. Heretofore it has to a considerable extent remained in the reserve cities there, and has gone to swell the resources of Eastern financial institutions, and has been available only in small part for the financial requirements of the territory which created and produced it. One of the principal features of the http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 28 new order brought about by the Federal Reserve Act is that of making this money directly and primarily available for the supplying of the financial demands of the territory where it properly belongs. The argument likewise places the banks of Nebraska and Wyoming in a most inconsistent position. They now complain that the Organization Committee did not create the district with due regard to the customary course of business done. Before the Organization Committee they contended that the customary course of business of those States was either with Denver, Omaha, Lincoln, or Kansas City, or that it was within rather than without the district as created by the Committee. In this latter contention they were supported by all of the facts. The people of those States will have the same markets as heretofore, and their customary business will be carried on as heretofore, without the slightest interference or inconvenience and entirely uninfluenced by their location in this reserve district. Due regard was given to the claims of the petitioners, and no violence was done to the customary course of business, and their convenience was and is best served by being associated with Kansas City, rather than Chicago. V. The statements incorporated in the Petitioners' Brief compiled from the Banker's Encyclopedia, giving the listed correspondents of National Banks in the States of Nebraska and Wyoming, have no legitimate bearing upon the customary http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 29 course of business within the district, especially under the present system. If these figures could be regarded as indicating the customary course of business, they would indicate that it was with the city of New York, rather than with the city of Chicago, as they show that 194 Nebraska banks and 29 Wyoming banks listed New York correspondents, and only 138 Nebraska banks and 20 Wyoming banks listed Chicago correspondents, or that the customary course of business runs to New York as against Chicago in the ratio of 223 to 158. It is known to every well-informed banker that, except the banks in the large cities, nearly all banks which are remote from centers like Chicago and New York keep accounts there solely for exchange purposes. This is especially true in this locality, where much Eastern money is loaned, at low rates and for a long period, upon the security of our farm lands, and the holder requires payment in Chicago on Eastern exchange which can be used at par. The provision of the Federal Reserve Act to the effect "that every Federal Reserve Bank shall receive on deposit at par from member banks or from Federal Reserve Banks checks and drafts drawn upon any of its depositors, and when remitted by a Federal Reserve Bank, checks and drafts drawn by any depositor in any other Federal Reserve Bank or member bank upon funds to the'credit of said depositor in said Reserve bank or member bank" will, as soon as it is appreciated by the smaller member banks, revolutionize the present practice of carrying accounts in Chicago and New York for exchange purposes. This was the purpose of the law-makers, and it will be one of the most effective agencies in overcoming the injurious practice of centralizing the money of the country in large cities like http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 30 New York and Chicago, thereby rendering it largely unavailable to the financial operations of the territory where it was produced and where it legitimately belongs. VI. Petitioners' statistics concerning items handled by Nebraska banks are not fair. Much stress is laid by petitioners upon the statements compiled from the returns made by about 15o of the national banks in Nebraska, showing number and amount of items handled on Omaha, Chicago, and Kansas City, respectively. In compiling these figures, it seems that the petitioners have not been entirely fair. They have failed to include transactions handled by a very large number of the national banks in Kansas City's claimed natural banking territory; they have failed to include any returns from the city of Lincoln; and they have included the returns from only one of the non-petitioning national banks of that State. If the list of omitted national banks is carefully studied, it will be readily apparent that these figures are not based upon returns from all of the national banks in the State, but only from about one hundred and fifty of them, and that there is an apparent disregard of a very large number of national banks in the territory claimed by Kansas City as its natural banking territory, even as against Omaha. These figures, based as they are upon only partial and very incomplete data, should be entirely disregarded. The territory claimed by Kansas City as its natural banking territory is shown by the map reproduced on page 175 of the letter to the Senate, from which it appears that that 129 banks located at points indicated thereon carried accounts http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3 in Kansas City, and the territory is very largely ignored in the aforesaid compilation of these statistics. It is claimed that "the Reserve Banks of Chicago could get from any leading Chicago bank information respecting individual officers, banks or commercial paper of•Nebraska and Wyoming; while at Kansas City the reverse would be true." This statement apparently indicates a change of opinion since the hearing before the Organization Committee, for at that time Mr. Henry W. Yates, whose name appears on the present brief, said: . "If we should go to Chicago, what would Chicago know about Nebraska or Kansas or Colorado or Montana or Wyoming? It would know nothing; while almost any Nebraska banker would know a great deal about it." Observations of the course of country bankers, covering a period of many years, justifies the assertion that the officers of very few banks in Nebraska, outside of the larger centers, are personally known to Chicago bankers. Their dealings with Chicago are along exchange lines, and when they have been compelled to discount their paper, it has been done largely with the larger banks in their own immediate territory, and not with Chicago. If the truth could be ascertained, we do not doubt but that more Nebraska bank officers are personally acquainted with Kansas City bankers than are acquainted with Chicago bankers. Many of the officers in Kansas City banks acquired their banking experience in the State of Nebraska. Kansas City bankers are on hand to give their information; Omaha and Lincoln bankers are readily accessible by the telegraph and telephone; two of the nine directors of the Federal Reserve Bank of Kansas City are residents of the State of Nebraska; the class of paper to. be handled will be http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 32 largely of the same character handled by the banks in Kansas City; so that it is a far cry to even intimate that the new organization will be handicapped by inability to quickly and thoroughly acquire all information concerning prospective borrowers that is necessary to its proper protection or to the fair, prompt, and just treatment of its patrons. Much of the business thus far done by the Federal Reserve Bank in Kansas _ City has been done with Nebraska institutions, and its officers have yet to hear the slightest complaint of any hardship or inconvenience to which the Nebraska banks have thought themselves subjected. VII. Convenience. In order for the Nebraska or Wyoming banker to go to Chicago, he must first come to some Missouri River gateway point: Omaha, St. Joseph, or Kansas City. When he reaches Omaha, he is 300 miles nearer Kansas City than he is to Chicago; and at St. Joseph, he is over 400 miles nearer. From every point in these States, Kansas City is more accessible than Chicago. Assuming that his personal presence is desired at the Federal Reserve Bank, many a Nebraska banker could leave his home community in the early morning, reach Kansas City, and have several hours for the transaction of his business and be back in his home town at a reasonable hour in the evening. The large number of trains running each way daily between Omaha and Kansas City afford not only reasonable, but thoroughly adequate transportation facilities. The cost of such a journey from Omaha to Kansas City is substantially less than that to Chicago. The telegraphic rates be- http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 33 tween Omaha and Chicago are 333'% in excess of what they are between Omaha and Kansas City, and the telephone rates between Omaha and Chicago are almost three times as great as they are between Omaha and Kansas City; the rates between Omaha and Chicago being $2.75 for 3 minutes' conversation as against $1.00 for the same service between Omaha and Kansas City. The mail dispatches from Kansas City daily are set forth at page 178 of the letter to the Senate. The tabulation there shows that every reasonable facility is afforded. Chicago mails must go first to either Omaha, St. Joseph, or Kansas City, while mails from Kansas City go either direct by way of St. Joseph or Omaha, making it certain that a letter mailed in Kansas City will reach its destination in every part of the State of Nebraska more quickly than from Chicago. VIII. Statements contained in Exhibits "D," "E," "F," and "G" do not justify 'petitioners' conclusions based thereon. Exhibit "D." This exhibit contains the statement that of the total tonnage on the Union Pacific Railroad Company, originating in the States of Nebraska and Wyoming, destined to points on or beyond the Missouri, 87.1 per cent goes to Omaha and 11.6 per cent to Kansas City. As there is nothing to show what part, if any, moves beyond the Missouri, the figures fail to reveal any information whatever as to the amount thereof going to Chicago. Even if the inference is attempted to be indulged that some part of this tonnage goes immediately forward as through freight, it must be in the face of positive testimony heard before the Committee at Lincoln. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 34 Witness Delano said (p. 2164): "As far as I know, it [live stock and grain] stops at Omaha. Our grain and live stock all go to Omaha,to the Omaha market." Witness Seymour (p. 2160) said: "We used to ship our cattle to Chicago years ago, especially the heavy varieties; but the markets of the Missouri River, especially Omaha, have been so much better than former years that none of our cattle go anywhere else." The Secretary of Agriculture (addressing witness John C. "What percentage of live stock from this French) (p. 2093) country would go through to Chicago, would you say?" Mr. French: "A very small percentage." It should be remembered that the Union Pacific lines carry on much more extensive operations in the territory in Nebraska adjacent to Omaha than in that part thereof adjacent to Kansas City. Exhibit "E." The same criticism that is made of Exhibit "D" as to the pertinency of the data as indicating any trend of travel to Chicago may likewise be made to this exhibit. These figures show that of the live stock shipments originating in Wyoming and Nebraska and transported over the Burlington in 1913, 21,410 cars went to Omaha, and 14,288 cars to Kansas City and St. Joseph; and that, of the grain so originating, 14,141 cars went to Omaha, and 9,016 cars to Kansas City and St. Joseph. The other figures refer to local products and are not significant in determining trend of travel. Incidentally these figures do show that Kansas City does a very substantial business over this line when it is perceived http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 35 that there came from these States in one year about 35,000 cars to Omaha and about 23,000 cars to Kansas City and St. Joseph. This surely does indicate that Nebraska and Wyoming do some business towards the Southeast. Exhibit "F." The statement of Mr. F. Walters, general manager of the Northwestern, refers to a railroad that has no direct connection with Kansas City. Are the petitioners entirely fair when they publish statistics relative to the Northwestern, which s would naturally take a very substantial part of its busines i to Omaha, and omit entirely all reference to the Missour Pacific, the Rock Island, and the Grand Island, when they know, as will every one who cares to investigate, that these roads are the natural feeders of Kansas City and St. Joseph, even as against Omaha? Exhibit "G." This exhibit, also unfair as it is, refers only to the Union Pacific and Burlington lines, omitting all mention of the facilover ities existing between Kansas City and Nebraska points the-Rock Island, the Grand Island, and the Missouri Pacific through St. Joseph or by direct route to Kansas City. Kansas City has daily 21 mail dispatches to the North http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis and 13 to the Northeast. The schedule of mails between Kansas City and Omaha is as follows Mails for Omaha, Nebraska, close at Kansas City postoffice as folloyvs: 7:55 a. m., via Missouri Pacific ii :oo a. m., via Burlington Train No. 103 Train No. 121 36 12:15 p. m., via Missouri Pacific Train No.. 107 io:oo p. m., via Burlington Train No. 23 10:20 p. m., yip, Great Western Train No. 4 Mails from Omaha, Nebraska, reach Kansas City postoffice as follows: 8:15 a. m., via Burlington Train No. io:3o a. m., via Burlington 22 Train No. 44 4:52 p. m., via Missouri Pacific 5:10 p. m., via Burlington Train No. 20 Io:oo p. m., via Burlington Train No. 22 ii :55 p. m., via Burlington Train No. 104 Train No. 26 These dispatches unquestionably furnish every reasonable mail facility between the two cities, and are such that at Omaha mail going and coming from Kansas City cannot be delayed so as to prevent it quickly reaching its destination. If we may be permitted one short journey outside the record in answer to the contention of petitioners concerning the mail facilities between Omaha and Chicago, based upon alleged facts outside the record, we desire to reproduce a letter from the post-office authorities at Omaha, dated January 16, as follows: http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis "Replying to your attached inquiry,beg to advise as follows: "The time of dispatch of *mails Omaha to Kansas City: 8:oo A. M. 4:io P. M. 8:45 :30 P. M. Io:To :oo 11 :35 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 37 "The time mails from Kansas City are received at this office: 7:16 A. M. 12:46 7:56 5:47 9:10 6:20 P. M. 9:16 "The time of dispatch of mails Omaha to Chicago: 6:45 A. M. 5:40 P. M. 8:00 7:16 I2:I0 P. M. 11:35 "The time of receipt of mails from Chicago at Omaha: ro:15 A. M. 12:30 A. M. :25 7:56 I 49 P. M. 3:19 9:10 4:09 5:14" This communication tells its own story and conclusively shows the desirability of Kansas City over Chicago from the standpoint of convenience. The alleged wrongs ,which the petitioners are attempting to remedy by this proceeding are imaginary, rather than real. The relief they ask is not warranted by the facts and is inconsistent with, and would be violative of, the purpose and spirit of the Federal Reserve Act. We feel confident that the bankers of these States who have already had business transactions with the bank at Kansas City fully appreciate the advantages growing out of an association .with this city, rather than with Chicago, and that as the system becomes better known and understood they will commend, rather than condemn, the wisdom of the Organization Committee in placing them in District Number Ten, with Kansas City as head- 38 quarters. The action of the Committee is in strict accord with http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis duty under the law, and should not be set aside. Respectfully submitted. ROBINSON & GOODRICH, Attorneys for the Federal Reserve Bank of Kansas City. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis
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