Full text of Central Western Banker : August 1928, Volume 23, No. 8

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CENTRAL WESTERN
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N EBRA SK A STATE CA PITO L

In and Out o f the
Guaranty Law

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Federal Reserve Bank of St. Louis

Now 71
On August 1, 1857, Kountze Broth­
ers founded a banking house in the
small wooden frame building pictured
above.
This month that banking house— the
First National Bank o f Omaha—
celebrates its seventy-first birthday.
For nearly three-quarters o f a cen­
tury we have kept pace with the
growth and development o f Nebraska
and the middlewest.
For three generations we have fu r­
nished our customer banks with a
personal and friendly service. Many
o f our correspondent banks have been
doing business with us for more than
fifty years.


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Federal Reserve Bank of St. Louis

First National

I Bank of Omaha

FIRST TRUST CO M PAN Y
---------- --------------------------- — ---------------------------------------1

ò

p H A I R M A N F R E D E R I C K H.
^ RAW SON of the Union Trust
Company of Chicago announces that
the board of directors have passed a
resolution increasing the bank's capi­
tal stock of $1,000,000. Stockholders
will vote on the increase in September.
If approved the new stock will be o f­
fered to stockholders at $400 per share,
each stockholders being entitled to buy
one new share for each three shares
now held.
J O H N A. H A R T F O R D , president
of the great Atlantic & Pacific Tea
Company, has been made a director
of the National Bank of Commerce of
New York City.
O OSS D A V IS has been placed in
AV charge of the Chicago office of
J. G. White & Company, Inc., and will
become western manager of the com­
pany. He was formerly associated
with Paine, Webber & Co., and for
some years was Northwestern repre­
sentative of the Illinois Merchants
Trust Company of Chicago.
D A L P H A. STE V ^^E N SO N , recently
a partner of Redmond
& Co., has been made
a vice-president of the
Guaranty Company of
New York. He be­
gan his bank career
with the First Na­
tional Bank of Bos­
ton, and later joined
the staff of N. W .
Harris & Co., now
k n o w n as Harris,
Forbes & Co., remain­
ing with that firm for
14 years. Ele spent
six years at Montreal
and Toronto, and lat­
er was affiliated with
their London office.
HPHE OFFICES of
th e
Investment
Bankers Association
of America, formerly
at 33 South Clark St.,
Chicago, 111., have


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been moved to larger quarters in suite
531 First National IBank Building,
Chicago. The official address of the
Association will remain at 33 South
Clark Street.

en route at Billings, Montana, and re­
ports a fine outcome for the Montana
stock industry.
CJCFILUTOR & CO., Inc., New York
investment house, will enter the
Western field soon, with Charles A.
Crane, Vice President, in charge of
Western operations. Mr. Crane was
associated for seven years with the
Bond Department of the Harris Trust
& Savings Bank, two and one-half
years with A. G. Becker & Company,
and four years with Folds Buck &
Company.

p R E S ID E N T C. T. JA F F R A Y ,
of the Soo Line, prominent Min­
neapolis banker, accompanied by a
group of Minneapolis business men,
including bankers and grain men, re­
cently spent a week on a tour of in­
spection of farming conditions in
Minnesota, North Dakota and Mon­
tana. They reported excellent agri­
cultural prospects throughout the ter­
ritory inspected.
Among the bankers who made the
trip were E. W. Decker, President of
the Northwestern National Bank,
and Lyman E. Wakefield, President
of the First National Bank of Minne­
apolis.

"T H E AM E R IC A N TELEPFIONE
A & TE LE G R A PH C O M PA N Y re­
ports that on August 1st, when rights
expired to the Company’s new stock
issue of $185,000,000, all but one per
cent of it had been subscribed to. The
Company has been putting this cash
into high-class securities at the rate
of $10,000,000 daily.

p

E. H O V E Y , president of the
Stock Yards National Bank of
South Omaha, returned recently from
a trip to the Pacific coast. He stopped

\\

7 C. MacFADDEN, Secretary of
the North Dakota Bankers As111111111111111111111111111111111111111111111111111111)11111,111111,11111111,11,11111111111111,
sociation, announces
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that more than $1,~
500.00 is being con­
Vol. 23 No. 8
AU GUST, 1928
tributed by his asso­
ciation this year to
educate young men
and women to become
Legal D e p a r t m e n t ...................................
bank officials. This is
Giving Strokes to ‘T h ick ” Evans . .
a part of the half mil­
W heat Harvest Special Train . . .
lion dollar fund con­
6
Making Our Christmas Club Profitable
tributed by the Ameri­
7
BY VIRGIL D. A LLEN
can Bankers Associa­
Jobs Seek Men
tion as a foundation
8
BY T. R. PRESTON
for education.
h h h

h

h

In Th is Issue

“ Ten Brain Teasers” .......................
In and Out of the Texas Guaranty Law
Bonds and I n v e s t m e n t s .......................
Insurance
.....................................................
Nebraska News
News of the S t o c k y a r d s .......................
South Dakota N e w s ....................... .
Colorado N e w s .........................................
“ Have You Heard This One?” . . .

9

11
15

21
24
27
31
33
34

T h e C e n t r a l W estern B a n k e r of O m a h a
Published monthly at 416 Arthur Bldg., Omaha, Nebraska
Subscription, 25 cents per copy; $2.00 per year.
Entered as second-class matter at the Omaha postoffice.
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................

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OpHE CALH OU N
A IN V E S T M E N T
CO M PA N Y of Min­
neapolis has filed A r­
ticles of Incorporation
with a capital of $50,000.
Incorporators
i n c l u d e Willis I.
White, John P. Cos­
tello, and Ben W.
Clark, all of Minne­
apolis.

Central Western Banker, August 1928

4

C pH E F IR ST N A T IO N A L B A N K
of Fergus Falls, the oldest National
Bank West of St. Paul, recently cele­
brated its 56th anniversary. Elmer E.
A dam s has been its president since
1912.

T
P. M ORGAN & C O M PA N Y
^ • have arranged a private banking
credit to be used by the Bank of Spain
in connection with its plans for regu­
lating Pesenta exchange. It is planned
to conduct exchange operations gradu­
ally to raise the rate of exchange pre­

paratory to the return of the gold
standard in Spain.

'T 'H E M ISSOU RI BAN KERS AS
SO CIATIO N , through Secretary
W . F. Keyser, has paid three rewards
of $1,000 each for the death of one
bank bandit killed in attempting to
escape and for the arrest and convic­
tion of two who were sentenced to 50
years each in the penitentiary. The
reward offered by the Missouri Asso
dation was recently increased from
$300 to $1,000.

npH E FO REM AN B A N K of Chicago announces the letting of a
contract amounting to one-half bil­
lion dollars for the installation of a
new vault in the new Foreman Na­
tional Bank Building, which will be
used for 25,000 safety deposit cham­
bers in the Bank’s cash vault now un­
der construction.
L T A R R Y SN Y D ER and associates,
of Chicago, recently purchased
for more than $700,000 a 7,000-acre
tract of land sixteen miles southeast of
Sioux City.

The Payment o f a Note to
Person Other Than H older
By The C e n tr a l W
A

LO A N agent for a large Loan
and Trust Company took a note
and mortgage on farm land owned
by Alone and his wife. This note and
mortgage was sold by another agent
of the Loan Company to a party by
the name of Graham, at the place
where he resided. The assignment of
the mortgage was duly and properly
recorded without delay, at the Court
where the land was situated. As the
Interest Coupons became due, the
Mones paid the amount thereof to the
Loan Company, which forwarded the
money to the local agent in the city
where Graham resided. Graham was
notified by the agent upon receipt of
the money, and then delivered the cou­
pons to the agent, and received a check
from him. The coupons were can­
celed, and returned to the Loan Com­
pany by the agent, and this Company
in turn delivered them to the Mones.
A long time before the note became
due, the Mones paid $800.00 on the
principal of the mortgage note to the
Loan Company. The trust Company
never remitted the $800.00 to its agent
to the place where Graham lived.
Legal Action Began

Legal action on the note was com­
menced, by Graham against the Mones
who contended that they had paid
$800.00 on the indebtedness to Gra­
ham through his agent, The Loan
Company. Graham denied that the
Trust Company was at all times his
agent.
Thé question up for decision is:
Was the Trust Company the agent of
Graham, or the Mones ? This is the
principal question to be determined.
To establish the agency between
Graham and the Trust Company, the
Mones rely upon the letter written to
Central Western Banker, August, 1928

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Federal Reserve Bank of St. Louis

estern

B a n k e r Legal Department

ir.iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii

“ A T THE P A Y E R ’S R IS K !”

“ The payment of a negotiable
note before maturity to any one
other than the holder thereof, or
his didy authorized agent to re­
ceive such payment, is at the risk
of the payer!”
iiiiiiiiiim miimiiiiiiiiiiiiim iMiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii

them by Graham long after the Trust
Company had gone into the hands of
the receiver. The letter is as follow s:
“ Mr. and Airs. Atto Mone. Dear Sir
& Madam: As yet I have not re­
ceived the interest of $600.00 due
Alarch 1, 1927, on the mortgage I hold
against your farm. I have been in­
formed that the Mortgage & Loan A s­
sociation that has been attending to
these affairs is not running just the
way it should and thought possibly
you might prefer doing business direct
with me, which would save you any
extra charge for the loan company col­
lecting this interest as heretofore, and
would cost you only the straight 6
per cent interest.
“ I would like to hear from you as to
how matters stand and what you think
about this.”
“ Yours very truly.”
This is the only communication that
ever passed between Graham and
Mones.
The purchase of this note and mort­
gage was made when Graham went to
a loan broker in his own city, and
brought this paper. He purchased
this note with the coupons attached
to it and nothing else was done by him
in this matter, except to take the in­
terest coupons to this broker, collected
his interest, and to write one letter, the
letter is an admission of anything, and

does not establish or show that the
Loan Company is the agent of Gra­
ham. He doesn’t give the exact name
of this Loan Company and it is only
bv implication that it is possible to
infer what Loan Company has been
attending to these affairs. His letter
did not say that the Loan Company
had been ‘handling it for me’ or ‘hand­
ling it for you.’ There is nothing in
this letter that would be an admission
that they were his agents.
Money W as Paid

The money was paid by the Mones
to the Trust Company, and the com­
pany in turn sent it to its loan agent
at the place where Graham resided.
The agent notified Graham of the re­
ceipt of the money and the coupons
were turned over to the office of the
local agent by Graham who received
payment by the agent, and canceled
the coupons. The coupons were never
turned over to the agent where Gra­
ham lived for collection.
The state of facts presented were
not even sufficient to raise an issue of
face in the question of agency.
The $800.00 payment was made to
the Trust Company by the Mones
long before the note was due. The as­
signment of the mortgage in favor of
Graham was of record, and the Mones
were charged with notice that Gra­
ham was the owner of the note.
Payment of negotiable note before
maturity to any one other than the
holder thereof, or his duly authorized
agent to receive such payment, is at
the risk of the payer.
The Mones did not establish the
fact that the Trust Company was the
agent of Graham when they made the
payment to the Trust Company, it was
at their risk.

When a Banker
Strokes
Charles (

) Evans

An interview with the veteran chairman of
the First National at Lincoln.

/"A NE can travel the width and
breadth of the land for years with­
out discovering a more delightful, or
more interesting personality than S. EL
Burnham, veteran chairman of the
board of the First National Bank of
Lincoln, Nebraska. A dean of the
banking world and business counsellor
for all, Mr. Burnham is demonstrat­
ing how a young man of eighty years
can find the whole world a place for
peace, prosperity and happiness.
Speaking of his eighty years, Mr.
Burnham says he fooled the world a
bit for a while, many of his friends not
realizing he was nearing eighty. Re­
cently when his eightieth birthday
rolled around, an enterprising Lin­
coln editor commented editorially up­
on it, and as a consequence, the bank
lobby was overflowing that morning
with well wishers bearing good wishes,
flowers and gifts to the “ young man
of eighty.” It was almost overwhelm­
ing, says Mr. Burnham.
Mr. Burnham has, until recently,
been an arden devotee of golf. “ One

reason I ’m so young,” he says. (H e
also likes bridge and is said to play it
in a way that would please even Mr.
W ork ). Lie admits he was the first
real golfer in Lincoln, at a time when
no one knew a brassie from a mashie.
He heard about golf first in Chicago,
around 1890, when he accompanied
two or three bankers there on a round.
“ The minute I saw them hit the first
ball, I became a golf fan,” he says.
He returned to Lincoln and imme­
diately interested two or three friends
in the game. Most people thought
them crazy to chase a little white ball
around the pasture, but they finally
found a place for a nine hole course
and began the game in earnest. “ W e


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Federal Reserve Bank of St. Louis

played then for five dollars a year.
Now the golfer must spent a hundred
times that to play the game on a pri­
vate course,” he says.
“ Mum hearts” is the title of Mr.
Burnham’s favorite anecdote and
could easily be converted into a screen
comedy. Although possibly known to
many Nebraska bankers, it is easily
worth retelling here.
One of his early close friends was
a Mr. Haskell, Beatrice creamery man,
(now deceased), who was a great
practical joker. Both Mr. Burnham
and Mr. Haskell were fond of card
games, and at a friendly gathering one
time, Mr. Haskell asked Mr. Burn­
ham if he had ever played “ mum
hearts.” The banker said “ no,” but
opined that he could play most any
game that any one else could play.
The fun began. Mr. Haskell and
two or three “ confederates,” with Mr.
Burnham in their midst, began the
game. It was explained that after
the first play, the first man who said
a word would forfeit five dollars or
a word would forfeit $5 or so. Also, if
any one man took thirteen hearts, he
would forfeit the same amount. The
cards were dealt around, and Mr.
Burnham, as the guest, was “ permit­
ted” to play first. Scenting a “ nig­
ger in the wood pile” he led the ace
o f clubs, expecting the rest to follow
suit. Instead, every player, including
Mr. Haskell, threw on a heart. Un­
able to complain by word of mouth on
their general “ reneging” Mr. Burn­
ham continued to lead and consequent­
ly received every heart and lost his
forfeit.
The story of “ mum hearts” with
Mr. Burnham as the entertaining
“ sucker” was widely circulated among
their friends by Mr. Haskell, the prac­
tical joker. The banker finally saw a
chance to get back in a golf match. A
foursome had been arranged, with Mr.
Haskell as a spectator. A “ blind”
wager had been arranged, with each
man putting up a few dollars by pick­
ing the winner, writing his name on

S.

H.

BURNHAM

a piece of paper and folding it so that
no player knew who the other player
had chosen as “ low man.”
The morning preceding the after­
noon of the game, a Mr. Hill, friend
of Mr. Burnham, an excellent amateur
from Chicago, dropped into the bank.
Recalling “ mum hearts” Mr. Burn­
ham told of his plans for the game, in­
vited him in on it, at the same time
telling Haskell and the players that
Mr. Hill was just an ordinary “ dub,”
but a good fellow.
The game was begun, Mr. Burn­
ham secretly choosing Hill as the win­
ner, the others including Haskell, ig ­
noring him. After “ dubbing” the first
few holes, Hill began shooting par
golf, and seemed sure to win. About
that time, Mr. Burnham asked Has­
kell if he recalled “ mum hearts” and
the fun began, with Mr. Burnham do­
ing most of the laughing.
The third and concluding episode of
the “ mum hearts” joke, was engi­
neered by Mr. Haskell, who was out
for revenge on Banker Burnham. A
few months later, Haskell dropped in
the bank, to tell Mr. Burnham his
nephew from the east, a nice young
lad, was about to make him a visit and
that he would like to have Mr. Burn­
ham meet him and possibly play golf
with him. “ Sure,” says Mr. Burn­
ham, “ glad to meet the young chap.
What sort of a golf game does he
shoot?” “ Oh, just fair,” says Mr.
Haskell, who was not a golf player.
Central Western Banker, August, 192

6
“ You can give him several strokes and
still beat him.”
The “ nephew” arrived and was in­
troduced to Mr. Burnham as young
Evans. Scenting no dirty work, Mr.
Burnham accompanied the lad and
Mr. Haskell to the golf course, there
to be met by other members of the
foursome, and the game began, after
Mr. Burnham had arranged to give
Evans several strokes.
The young man played badly on
the first few holes, then began sud­
denly to lay out drives of nearly three
hundred yards, and cutting down Mr.
Burnham’s lead. Also, a gallery of
grinning spectators, summoned by the
enterprising Mr. Haskell, began to fol­
low the match, much to the discomfit­
ure of Mr. Burnham, who scented a
“ double crossing.”
To climax the story, Mr. Haskell
began muttering something about
“ hearts” and at the end of the game,
with Mr. Burnham badly snowed un­
der by Mr. Evans, he was boisterously

informed that his youthful opponent
was none other than “ Chick” Evans,
noted Chicago golfer, imported for the
occasion by Mr. Haskell, as Mr. Burn­
ham’s opponent. (This is one of the
favorite stories told by “ Chick” Evans,

who is now one of Mr. Burnham’s
great friends).
Not all of Mr. Burnham’s life has
been golf and practical jokes. Bank­
ing is his life work. He started the
American Exchange bank in Lincoln
in 1888, forty years ago. “ At the
time I didn’t know a single thing about
banking but had plenty of confidence
that I could learn,” he says. So he
hired a young chap named Wing to

keep his books. The “ young chap” is
now E. G. Wing, president of the First
National Bank of Boston.
Almost fifty years in Nebraska and
in Lincoln, Mr. Burnham has seen
many changes take place in the life of
the state and city. He was born in
Maine, and became a practicing at­
torney, before turning to banking. In­
cidentally, he urges every young man
to study some law, advising it par­
ticularly for the banker.
Confidence — confidence in your
ability and confidence of others as to
your ability, are stressed by Mr. Burn­
ham, as the stepping stones to success­
ful banking. “ Know yourself and
your customers and make them know
you— that is the secret of intelligent
banking,” he says. Speaking more in
detail on this subject, he says the cus­
tomer, even though he is not a bor­
rower, should submit to his banker
an occasional statement, so that the
banker may know him and be ready
to loan intelligently if the occasion
arises.

Wheat Harvest Special
^ E B R A S K A ’S Wheat Harvest
^
Special train of six exhibit
coaches left Lincoln early Monday
morning, August 13th, for a two
week’s run over the Pinion Pacific and
Northwestern lines in central and
eastern Nebraska.
The first stop was at Papillion Mon­
day forenoon, the second at Elkhorn
Monday afternoon, and the third at
North Bend Monday evening. From
there the special went west on the
Union Pacific main line as far as
Cozad, spent three days on the branch
lines in south central Nebraska, and
then on the Northwestern lines at
Hastings for five days run. The last
stop will be at Albion the evening of
.Saturday, August 25.
Local committees at the various
stops have arranged harvest festivals,
bargain days, old settlers’ picnics, and
various other local attractions to enter­
tain the visiting farmers. Harvest
queens will be crowned in practicalb
all the towns as a feature of the spec­
ial train’s program.
One coach of exhibits is to feature
control of wheat smut which is said
to take a toll of two or three million
dollars every year in Nebraska. It
can be controlled by a simple seed
treatment costing less than a nickel a
bushel.
Central Western Banker, August, 1928

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Another coach will feature good
certified seed and show the value of
it. Another coach will be devoted en­
tirely to seed bed preparation methods
and practices. The ladies are to have
a home economics coach emphasizing
handy kitchens, water systems, and
convenient laundry facilities. All
these coaches were prepared by the
agricultural college. The Omaha
Grain Exchange added a coach show­
ing what happens to grain when it
reaches the terminal market.
Two agricultural college men will
work in each of the coaches and two
women and one man in the home eco­
nomics coach. Stops of three to four
hours will be made in each town so
everyone can stop, look, and listen un­
til he has the complete message of the
train. Loud speakers on the train
will make it possible for everyone to
hear every word of the short program
from the open demonstration car.
The crowning of the local harvest
queen will take place on the open dem­
onstration car of the train. In all
cases, she will be a rural girl chosen
by popular vote as the most highly
esteemed young lady of the commun­
ity. She and her attendants will lead
the visitors through the train.
The complete itinerary of the train
follows. The first town listed under

each date is the morning stop, the sec­
ond the afternoon stop, and the third
the evening stop of the train.
Monday, August 13— Papillion, Elkhorn, North Bend.
Tuesday, August 14— Schuyler, Sil­
ver Creek, Central City.
Wednesday, August 15 — W ood
River, Gibbon, Kearney.
Thursday, August 16— Elm Creek,
Lexington, Cozad.
Friday, August 17— Polk, Osceola,
Mead.
Saturday, August 18— Cortland,
Blue Springs, Fairbury.
Monday, August 20— Belvidere.
Fairfield, Hastings.
Tuesday, August 21 — Harvard,
York, Gresham.
Wednesday, August 22 — David
City, Beaver Crossing, Seward.
Thursday, August 23 — Geneva,
Davenport, Superior.
Friday, August 24— Hooper, Dodge,
Clarkson.
Saturday, August 25— Humphrey,
Newman Grove, Albion.
O f all the heavenly gifts that mortal
man commend,
What trusty treasure in the world
can countervail a friend?
— Grimbold.

7

Buy

'T ' HE other day I was
visiting with a banker
in another city who made
the statement that he did
not consider his Christmas
Club worth while, although
the membership was ap­
proximately 10,000 with de­
posits of half a million.
The reason for this state­
ment was, of course, the
fact that his bank is pay­
ing 4 per cent interest on
these deposits and undoubt­
edly losing money in the
present market.
I suggested to him that
he cut this interest in half,
but he did not think this
possible without incurring
a great deal of ill will and
decreasing the membership
to a large extent. Certain­
ly there are many other
bankers who feel them­
selves to be in the same dif­
ficult position, and for tins
reason it occurred to me
that our experience might
be particularly helpful.

Christmas

Cheer

"CH RISTM AS CLUBS HELP P A Y
INSURANCE PREMIUMS"

Throughout

The

Year

PRIZE CONTEST

maintained $5 and $10
Clubs. Many depositors
” W hy I H ave a Christinas Club”
failed to reopen their clubs,
As Treasurer of the Utica Mutual In­
Rules
surance Company, Mr. J. L. Train
however, and yet in spite
knows that a great many people use
The contest is open to everyone who intends to have a
of this, our membership
Christmas Club in 1928.
part of their Christmas Club money to
pay insurance premiums.
In seeking the Best Reasons why Christmas Clubs are
showed an increase over
so popular, the contest aims to determine the proportion
of Christmas Club money spent for gifts, taxes, insur­
Figures from all over the country also
the previous year.
ance, etc., and the proportion transferred to permanent
show that a large portion o f Christmas
Interest Accounts.
Our plan embodied two
Club funds are set aside for insurance
Best Reasons must be given in less than two hundred
rather interesting features;
purposes.
words, with the name and address of the author plainly
written on the copy submitted.
first, a membership drive
About $23,000,000, of the Christmas
Contestants may bring or mail their Best Reasons t»
Club fund distributed by banks in the
by employes; second, a
the Christmas Club windows at any one of the three
offices of the “ First.”
United States, is accumulated for vari­
prize essay contest for the
ous kinds of property and life insur­
The contest will close at 3 p. m. o’clock, December 30,
1927. Winners will be announced January 10, 1928,
public.
ance payments.
and awards made as follows: first prize, $25.00; second
prize, $15.00¡''third prize, $10.00; and live prizes of
The membership drive
More than 8,000,000 American people
$5.00 each.
have Christmas Clubs. More than
was announced at a dinner
Judges
23,000 people in Utica alone, use the
meeting of the First Bank
Christmas Club. Join today at one of
our three convenient offices. Pay your
Club. The competition was
insurance premiums by the Christmas
for prizes offered by the
Club method.
directors of the bank and
consisted of articles manu­
factured by concerns in
which they were interested.
The articles included fur­
niture, underwear, break­
fast food, and ginger ale.
oj' Utica
The rules of the drive
merely prescribed that the
employes who obtained the
An advertisement used by the First Bank and Trust
largest number of new
Company advertising its Christmas Club
Christmas Clubs would
have first choice of prizes
Here is Our Experience
and so on. The bank sup­
Eight months have pass­
plemented the prizes o f­
ed since we reduced the in­
fered by the directors by
terest rate on our Christ­
providing ten gold awards
mas Club accounts from 4
to go by lot to employes
per cent to 2 per cent and
who qualified with a cer­
yet deposits are 85 per cent of the
By V irgil D. A l l e n ,
tain number of new clubs to their
amount in the Club a year ago.
credit.
Our Christmas Club was just a
Assistant Vice-President
How It W as Done
year old when we realized that to
First Bank and Trust Co., Utica
make it pay we would have to reduce
Each employe was provided with
the interest rate.
folders describing the Christmas Club
the legend “ Interest at the rate of 2 and the prize essay contest for the
Further Complications
per cent will be paid on 1928 Clubs”
public. These folders featured our
The situation was still further com­ were placed in the Christmas Club attractive Christmas Club pass book
plicated because the local savings bank teller’s window.
and were designed to tie up with car
a mutual institution, could not con­
When depositors objected to the cards and newspapers.
form to the clearing house agreement
reduced rate of interest, they were
A signature card was made a part
made by the commercial banks. The
told that it was being done in order to of each folder and on the back of each
officers of the Savings Bank did agree, place the Christmas Club on a paying card was a map showing the three con­
however, that they would not adver­ basis. If they did not accept this ex­ venient offices of the bank. Introduc­
tise the difference between their four
planation, they were then told that a tion by means of these cards estab­
per cent and the Clearing House two
regular savings account in the savings lished credit for the account if an em­
per cent rate in an aggressive way.
department still paid four per cent.
ploye’s name was noted.
It was decided that no newspaper
There were some who availed them­
These folders were distributed free­
publicity or advertising would fea­ selves of this service, especially those ly. Executives in local industries were
ture the change. Show cards bearing Christmas Club depositors who hqd induced to enclose the folders in pay


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Federal Reserve Bank of St. Louis

—Mr. J. L. Train

To Select the Best Reasons

FIRST BA N K & TRUST CO.

Making Our Christmas
Club Profitable

Central Western Banker, August, 1928

8
envelopes. The tellers who made up
payrolls were able to help secure dis­
tribution in this way.
It was felt that the Christmas Club
provided opportunity to get the name
of the “ First” before a great many
people. Thus, from an institutional
standpoint we were able to capitalize
the “ Buy Christmas Cheer throughout
the year” appeal.
O f course interest in the personal
solicitation work by employes was
maintained by posting weekly scores
on bulletin boards to which only the
working force had access. The First
Bank News, also functioned to keep
solicitation efforts at a maximum, and
several meetings were held.
The prize essay contest was some­
what of an innovation. And we did
not plan it without full knowledge of
the dangers lurking in a contest.
Provision was made for acknowl­
edging immediately all essays received,
and at the conclusion of the contest
all participants received another let­
ter thanking them for the effort they
had made and enclosing a reprint of
the first prize essay, together with the
names of all winners.

Contest Rules Simple

The rules of the contest were not
complicated or set forth in a technical
manner and the cash prizes were kept
low, purposely. While we wished to
obtain a reasonable number of es­
says, the principal reason for the prize
contest method of newspaper advertis­
ing was to get our advertising read
and to induce readers to think. In
other words, by seeking essays giving
the best reasons “ Why I have a
Christmas Club” we raised the ques­
tion in the mind of the reader which
we answered in part by selection of
the judges of the contest.
The four judges represented re­
spectively the four main purposes for
which Christmas Club funds were
used, namely, gifts, taxes, insurance
and savings. And following the first
newspaper announcement of the con­
test, advertisements featured an arti­
cle by each one of the judges which
reads such as “ Christmas Clubs help
pay insurance premiums,” followed
with statistics showing the total num­
ber of local Christmas Club depositors
in all banks and the portion of the na-

Jobs Are Seekin
13 1G business, instead of denying the
individual his opportunity in life,
opens new and better opportunities for
him than existed in the days when
large-scale operations were exception­
al, says Thomas R. Preston, president
of the American Bankers Association.
“ A young man now has ten times as
many opportunities as a young man
had a generation ago,” he writes, in a
recent article. “ There is proof of this
everywhere. Formerly men sought
jobs, now jobs seek men, and the most
difficult task of every executive is to
find men of character and ability,
trained to a high state of efficiency.
“ Thirty years ago people thought
that because of mergers and combina­
tions we had reached the age of bigbusiness. Mergers and combinations
then seemed small compared with
those of today. Some contended then
as they do now that in the age of
great combinations and consolidations
an individual would become but an
atom of an aggregation. Has not the
reverse proven true?
“ It is a fact that ninety per cent of
all business is now done in corporate
form.
Corporations are the one
means by which a multitude of indi­
viduals can mass all or part of their
resources in an enterprise for the dcCentral Western Banker, August, 1928

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Federal Reserve Bank of St. Louis

T H O M A S R. P R E S T O N , P re s id e n t
H a m ilt o n N atio nal B a n k "
Chattanooga, Te n n e s se e

velopment of the country and render­
ing service to the people. Large units
of capital result in benefit to the pub­
lic. W e can have no real labor in
this country without capital, and the

tion’s Christmas Club fund used for
the specific purpose described. This
helped establish the Christmas Club
as a popular and acceptable method of
saving.
Copy W as Kept Busy

O f course each one of these adver­
tisements incorporated the prize con­
test rules so that the news value of
the copy was maintained. Reprints
of the prize contest announcement
were also posted on bulletin boards in
the schools.
A number of essays were sent to us
and one receiving the first prize was
published. In this way and through­
out the contest, we were able to bring
the best reasons for having a Christ­
mas Club to the attention of a great
number of people who had never be­
fore realized the value of such a meth­
od of saving.
As a result of these efforts, our 1928
Christmas Club is larger than the Club
of the past year in spite of the lower
rate of interest and notwithstanding
the fact that it had just passed its first
anniversary when this radical change
took effect.

Men
more capital the greater opportunities
for labor.
“ In banking it has been demon­
strated over and over again that it is
far better for the public that we have
fewer and larger banks, which are
capable of meeting adequately every
demand, rather than multitudes of
small ones struggling for existence.
This is also true in other lines.
“ Big business has been a great aid
to labor. Would it be possible for a
skilled mechanic to earn from $8 to
$25 per day, except for big institu­
tions? Would these men be able to go
to and from their work in high-power­
ed cars except for this? W ould the
standards of living be anything like as
high as they are today except for
these great institutions?
“ From an investment standpoint
Big Business has also been of great
assistance to the masses. W e must
realize that these large institutions are
now owned by the public. It is said
that directly and indirectly fifteen mil­
lion people own the corporations of
this country, and one reason why
demagogues do not get any further in
their abuse of corporations is because
they are talking to the very people who
own them. Any man who desires to
do so can own stock in the Standard
Oil Company or any other of our
great enterprises.

9

0 In Cash
for the Best
Ten Brain Teasers
CONTEST R ULES

1— Ten dollars cash from the C e n t ­
ral W estern B a n k e r to the read­
er sending in the best answers to
the ten questions on this page.
2— Contest open to all readers of the
C e n t r a l W estern B a n k e r of
Omaha.
3— Answers must be sent in by Sep­
tember 10th with the name and
title o f the contestant clearly signed
at the bottom of the letterhead.
4— Contest letters should be addressed
to Contest Editor, C e n t r a l W est ­
ern B a n k e r , 416 Arthur Bldg.,
Omaha, Nebr.
5— Contestants need not repeat, in
their letters, the ten questions, but
should list their answers, 1, 2, 3.
etc.
ip OR the best answers to the ten
" “ Brain Teasers” listed on this
page, the C e n t r a l W estern B a n k e r
will pay ten dollars in cash. In addi­
tion, the prizewinning answers will be
published in the September issue of
this magazine under the author’s
name. This contest is open to all
readers of the C e n t r a l W estern
B a n k e r . Send in your answers at
once!
The ten questions listed on this page
are submitted by a banker who has
made quite a hobby of “ brain-teasers,”
E. F. Folda, manager of the bond de­
partment of the Stockyards National
Bank of Omaha. In fact, Mr. Folda’s reputation for digging up ques­
tions of vital interest on banking prob­
lems has extended over a quarter of
a century and his frequent “ question
boxes” conducted at Nebraska group
meetings year after year, always prove
a source of great interest.
At the request of the editor of the
C e n t r a l W estern
B a n k e r , Mr.
Folda has prepared twenty questions,
the first ten of which appear on this
page. A similar prize of ten dollars
will be awarded to the best answers to
the next ten questions that will appear
in an early issue of this magazine.
W hat Mr. Folda Says

Anent the “ brain teasers” Mr. Fol­
da says:
“ That certainly was a woeful day
for me when I promised in an un­
guarded moment to write the “ Ques­
tion Box’ for the editor of the C e n t ­


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Federal Reserve Bank of St. Louis

W estern B a n k e r because for a
month or more I have said to myself
more than once, ‘Today is the tomor­
row I worried about yesterday.’ I
have determined to stop worrying
about it and let the editor do the wor­
rying when he sees what happens to
his circulation, after this article ap­
pears, provided he dares to print it.
And right here I want to congratulate
the magazine and its subscribers on
the excellent publication now being
issued as the C e n t r a l W estern

ral

Banker.

“ And now— the Question Box—
nothing more or less than a round

.................................

1.
?
3.
4.
5.

6.

8.
9.

10.

Answers t

ers. Then that fact or case is men­
tioned.
“ W e do have some questions sent
in that seem exceedingly simple. The
Group meetings are attended by a
number of the young bank clerks and
officers and by some who are very new
in the banking business and they real­
ly want the information or advice
asked for.
“ Remember, I make no attempt to
answer the question myself, I simply
read the question as taken from the
box and nine times out of ten there
is someone in the audience who has
had some experience on that very sub­

iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiimiiiiiiimiiimiiiiiiiiiiiiiiiiiiiiiiiiHiiiiiiiiiiiiiiiiiiHiiiiiiiiiiuiiiiiiiimiiiiiiiiiiiiiiiiiiii.iii1

Is it obligatory upon a bank to certify the checks of a depositor?
If one of our customers ships his fat cattle to Omaha, how can we make
sure that our Bank will receive credit for the proceeds?
Can a post dated check be legally protested for non-payment?
Can a chattel mortgage be legally drawn to include after acquired indebt­
edness ?
Is it possible to draw a chattel mortgage on stock of merchandise to in­
clude stock to be purchased in future?
Are the words “ future advances” included in chattel mortgage protection
on money later advanced?
Has a bank a right to charge back to the person depositing the same, a
check found not good at close of the business day?
Are reconcilements from correspondent banks of any value as bank
records? Should they be retained? Give reasons for answer.
Does a judgment filed in District Court Clerk’s office take priority over a
chattel mortgage filed at a later date? Give reasons for answer.
If an account is attached, does this include deposits made following at­
tachment ?

iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiitiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii

table discussion of question brought
up at meetings of the Nebraska Group
Conventions. The name was suggest­
ed by the manner in which the ques­
tions were brought out. Blank slips
of paper were passed to those pres­
ent during the meetings or during the
intermissions, upon which each one
writes out a question he would like
to hear discussed and even some ques­
tion that can be legally and rightfully
answered by someone present, who
has had actual experience on that very
question. Another name for Question
Box might well be Experience Meet­
ing. The questions and answers are
not prepared before hand unless it
might be some new legislation recently
enacted or some recent court decision
that is vital and important to the bank­

ject and it is my aim and object to
find that person and have him get up
and relate his experience. Then, too,
we practically always have some at­
torneys in attendance and call on them
for their opinions on the question or
to state what the law provides. Often­
times the legislator who helped pass
some law is present and sometimes we
find that he does not know what is in
the law or what it is all about.
“ Yes, we do sometimes have some
funny questions and sometimes some
that are not so funny. At one meet­
ing a group had evidently been dis­
cussing how long a man could live
without brains and at that meeting the
first question in the box was: ‘Folda,
how old are you ?’ By the way, speak­
ing of age, Jay Rising of the National
Central Western Banker, August, 1928

10
Park Bank of New York City wrote
me last week that he remembers well
the first time he heard me conduct a
Question Box and that was in 1900.
Several other good bankers now
prominent in big city banks learned
from the Question Box conducted in
Group meetings in Nebraska. They
got their start here in Nebraska and
no doubt the question box had some­
thing to do with their success in after
life? See? Get that?
“ Now, what were some of the ques­
tions? I will omit those referring to
the Guarantee Fund of Nebraska.
Naturally many state bankers here in
Nebraska are interested in the Guar­
anty law and many questions about
that are asked and where the question

asks how or what is being or was done
with certain acts or rulings on the
law, we simply ask those who did do
it to raise their hands and those who
did not do it to do likewise, and let it
go at that. This simply gives those
present an idea of the percentage of
bankers attending the convention who
favor or do not favor any certain act
or rule of the Banking Department.
“ By the questions asked, a few of
which I list here, you will see that
some of the younger bankers are ask­
ing for advice, for instance— “ Can a
banker legally charge a note that is
due to a customer’s account?’ and
many of the older and experienced
bankers will answer, ‘Yes, it can.’
Then many times will follow : ‘Can a

note that is not due be charged to the
customer’s account under any cir­
cumstances?’ W e then learn of many
circumstances, some amusing and
some not so amusing where it was
or was not done. ‘Should a note be
protested when protest is waived in
the body of note?’ Naturally, this de­
pends on whether the corresponding
bank sending the note to you requests
that it be protested. The same is
true of checks that are inland bills of
exchange or foreign. But here, Mr.
Editor, I see I am getting into a dis­
cussion of the question, whereas all
you asked and all that I promised was
to send you some of the questions and
you can use them as you see fit. So
here they are.”

Cartoon Laughs o f the M onth

V ------

0UT LISTEN OFFICER,
THIS IS PRESIDENTIAL
T e a r a n d i c l a im
,
.m y r ig h t s !
___

“ H E SH A LL N O T P A SS!”

— Warren in the Cleveland News.

Central Western Banker, August, 1928


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Federal Reserve Bank of St. Louis

W H Y S H O U L D N ’T W E L E A D T H E
W O R L D IN T H E B R O A D JU M P ?
-Thom as in the Detroit News.

11

In and Out
o f the

Texas Guaranty Law
One of a series o f articles on how other states that have passed
guaranty o f deposits laws have worked out from under their burdens
|l\ JA N U A R Y , 1910, the Texas
This Article By
In February, 1927, both the Guaranty
Guaranty Fund System became a
C l a r k C. C a m p b e l l ,
Fund and the Bond Plan were re­
law, and all banks could avail them­
Austin National Bank,
pealed and now the State Banks of
selves o f this protection for depositors,
Austin, Texas
Texas are relieved of an unjust bur­
or “ provide a bond policy of insur­
den which cost many of them more
ance, or other guaranty of indemnity became numerous, and the bankers be­ than their earnings and in numerous
in an amount equal to its capital stock”
gan to study this problem of guaran­
cases was the cause of an impaired
for the protection of its deposits.
teeing deposits more seriously. This
capital.
The Guaranty Fund of $2,000,000.00 led to an amendment in 1925, which
Member banks carried on the books
was created by requiring all member
gave all State Banks the option of
as an asset the one-fourth of the one
banks to pay one per cent of average
either continuing to protect their de­ per cent paid the State Banking Board
daily deposits the first year and one- positors by the Guaranty Fund or to
as “ Interest In Guaranty Fund” and
fourth of one per cent
IIIIIIIIIIIIIIIIIMIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII|||||l1llllllllllll|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||i:illllllllllllllll„ll,llllll,llll„„„„„l„„„l,„„„„„l,„„|
the assessments paid by
of average daily de­
member banks to make
posits thereafter, onegood the depleted fund
fourth of this was paid
was carried on the
The article on this page, by Mr. Clark of the Austin National
in cash to the State
books as “ Assessment
Bank, Austin, Texas, on the operation of the Texas bank guar­
Banking Board and
in Guaranty Fund.”
anty law, is the first of a series of articles that will appear in
three-fourths was cred­
early issues o f the C e n t r a l W estern B a n k e r dealing with the
Will Show Loss
ited on the individual
final outcome o f guaranty laws in all states in which they have
ledgers of the member
O
w i n g to s u i t s
been adopted. The entire series should be of great help to N e­
bank to “ The State
against
the Guaranty
braska bankers in solving the problems that have arisen with
Banking Board.” After
Fund,
it
is conceded
respect to their own guaranty law. In each article, special em­
the $2,000,000.00 fund
that the interest in the
phasis
will
be
made
on
the
remedial
legislation
that
has
follozved
was created the law
Guaranty Fund will
the adoption o f the guaranty measures in each state, with lastprovided that member
show a loss of from
minute information as to their final outcome and methods of
banks thereafter would
five to fifteen per cent.
disposal.— Editor’s Note.
not pay any further
The assessment to
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiuiiiiiiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiitiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiitiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
amount into said fund
Guaranty Fund is esti­
until said fund be depleted from any change to the Bond plan. This Bond
mated to be worth not over fifteen per
cause, below the $2,000,000.00.
Plan provided that banks furnish per­ cent. Therefore, a bank having paid
sonal or surety bonds or approved se­ in $1,000.00 to interest in the Fund
Available Fund Changed
curities to the amount of the bank’s and $2,000.00 Assessment would now
have a loss not less than $1,850.00. In
About 1923 this available fund was capital stock, said bonds to be made to
the Commissioner of Banking for the other words, the member banks are
changed to read $5,000,000.00, as both
Banking Commissioner and the bank­ benefit of depositors and must be ap­ taking a loss of about sixty-five per
cent of the amount paid for protecting
ers realized that with continued fail­ proved by the Banking Commissioner.
their depositors.
ures the $2,000,000.00 would not take
A Mad Rush
care of the situation.
The Guaranty Fund is all right
When this option became effective
when there are no failures, but when
This $5,000,000.00 fund was kept there was a mad rush to get out from
available by constantly assessing all under the burden of the Guaranty
reckless and incompetent parties man­
member banks to take care of each Fund. This is clearly shown by the age a bank, it is certainly not right for
failure. The law provided that the
fact that out of approximately one the conservative and careful bank to
maximum assessment in any one year thousand Guaranty Fund Banks there make good losses sustained in which
be two per cent of the bank’s aver­ were about twenty-six Guaranty Fund they had no voice or management.
age daily deposit.
Banks in January, 1927. It is need­
The writer is of the opinion that
When the Guaranty Fund became less to say that there was but one rea­ practically every state having the
operative practically all State Banks son that these twenty-six did not make Guaranty Fund System found it un­
became members of this system, only
the change.
sound in times of stress and practical­
a few operating under the Bond Se­
The amendment in 1925 allowing ly all have been repealed.
curity System. Owing to few failures the banks the option of choosing the
When failures were most frequent,
the Guaranty Fund System operated method of protecting their depositors some of the city banks greatly cur­
apparently very satisfactorily until de­ was only the stepping stone to the tailed credits to the small banks, rea­
flation started in about 1921. Failures final repeal of the Guaranty Fund Act. lizing that the assessments being called


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Federal Reserve Bank of St. Louis

Central Western Banker, August, 192S

12
for greatly exceeded the earningpower of many banks, which must
necessarily lead to an impaired capital.
Making Better Bankers

It might be of interest to know that
the state banks of Texas paid out ap­
proximately $20,000,000.00, and it is
anticipated that some $16,000,000.00
of this will be a loss. In the repeal
of our Guaranty Law, the deposits in
our state institutions seemed to suffer
no loss. The funds heretofore paid to
make good some other bank’s losses
are now used to strengthen the bank
by building up a larger surplus and the
profits once more go to the stockhold­
ers. W e in Texas feel that the re­
peal of the Guaranty Fund Law is
making better banks and better bank­
ers, for each bank is now solely and
directly responsible to its depositors,
and they seem to be running their busi­
ness on a more conservative basis.
The Executive Committee of the
State Bankers Association has ap­
pointed standing committees to serve
until the council meets in 1929, the
committees, as nearly as possible, hav­
ing a member of the council as chair­
man. The committees are :
Membership : C. F. Coffee, Jr.,
chairman, vice-president First Na­
tional Bank, Chadron ; F. A. Peterson,
president, First National Bank, Madi­
son; C. J. Mortensen, vice-president,
Nebraska State Bank, Ord.
County Organization: O. A. Riley,
chairman, cashier, State Bank of
Hastings; M. H. Taylor, vice-presi­

Central Western Banker, August, 1928

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Federal Reserve Bank of St. Louis

dent, First National Bank, Elgin; R.
H. Hastain, vice-president, Bank of
Commerce, Louisville.
Protective Committee: W o o d s
Cones, chairman, president, Cones
State Bank, Pierce; C. F. Gund, presi­
dent, First National Bank, Blue H ill;
Tul Petermichel, vice-president, Oak
Creek Valley Bank, Valparaiso.
Insurance: Frank Boyd, chairman,
vice-president Omaha National Bank;
A. J. Jorgenson, president, American
Bank of Sidney; E. C. Cole, presi­
dent, Ranchers State Bank, Cody.
Agricultural: T. H. Pollack, chair­
man, president, Farmers State Bank,
Plattsmouth; Dan V. Stephens, presi­
dent, Fremont State Bank; H. D. Mil­
ler, president, First National Bank,
Stanton; F. R. Kingsley, Jr., cashier,
Minden Exchange National Bank;
C. S. Brown, vice president, Fidelity
State Savings Bank, Aurora.
District Clearing House: H. A.
Guttman, chairman, cashier, Bank of
Murdock; A. J. Guendel, president,
Nebraska State Bank, Grand Island;
E. I. Ellis, president, First National
Bank, Tekamah.
Service Charge: Arthur Jensen,
chairman, vice-president, M i n d e n
State Bank; I. R. Alter, vice-presi­
dent, First National Bank, Grand Is­
land ; C. M. Hitchman, vice-president,
Farmers State Bank, Blair.
Time Lock: H. A. Guthmann,
chairman, cashier, Bank of M urdock;
F. H. Bruning, cashier, Bruning State
Bank; George H. Gray, president,
First National Bank, Colunibus.

County Credit Bureau: J. A. Boyd,
chairman, cashier, Farmers State
Bank, Kearney; Harry Erickson,
cashier, Boelus State Bank; A. P. Pilger, cashier, First National Bank,
Stanton.
Education, Public Relations and
Thrift: P. R. Easterday, chairman,
vice-president, First National Bank,
Lincoln; W. E. Henry, Chairman of
Board, Loup City State Bank; C. A,
Phillips, cashier, Cambridge State
Bank; J. E. Conklin, president, Plubbell Bank; W . H. Dressier, cashier,
Stockyards National Bank, Omaha.
Legislative: Dan J. Riley, chair­
man, cashier, Dawson bank; George
W. Woods, cashier, Lincoln National
Bank and Trust company; Howard A.
Clarke, cashier, Columbus State Bank.
Taxation: Elmer Williams, chair­
man, president, Commercial State
Bank, Grand Island; C. E. Burnham,
president, Norfolk National Bank;
C. R. Hart, president, Prosser, State
Bank; George W . Holmes, vice-presi­
dent, First Trust Company, Lincoln;
J. R. Cain, Jr., vice-president, Peters
National Bank, Omaha.
Publicity: C. J. Claassen, chairman,
vice-president, Peters Trust com­
pany, Omaha; Fred D. Stone, First
National Bank, Lincoln; P. L. Hall,
Jr., president, Greenwood State Bank,
Greenwood.
Finance: C. A. Smith, chairman,
vice-president, Tilden National Bank;
F. R. Haggart, vice-president, St.
Paul State Bank; A. L. Coad, cashier,
Packers National Bank.

13

A bout Nebraska Banks and Bankers
H. H. B iatt, who for 32 years was
connected with the Citizens Bank of
Bennett, Neb., died at the age of 67.
He had been president of the bank
since January, 1927.
Omaha bank debits (total check
transactions on banks) for the 26
weeks ending June 27 were 8.9 per
cent larger than for the same period
in 1927, according to the monthly bul­
letin of the Federal Reserve Bank of
Kansas City. Savings deposits in re­
porting Omaha banks were $9,251,913
on July 1, compared with $8,082,451
on July 1, 1927. An increase of 993
local savings accounts was reported
from July 1, 1927 to July 1, 1928.
The profits in following a program
of soil improvement were discovered
by the Nebraska Bankers Association
from the records of 44 farms in Fron­
tier county, Nebraska, which followed
a program of soil improvement with
legumes and live stock. The average
labor income on the farms which fol­
lowed the program was $2,641 a year
or $245 a month. As for the farms
that did not follow the soil improve­
ment program, the labor income for
the year was only $157 or $14 a month.
Omaha South Side banks are act

ively engaged in promoting the AkSar-Ben Live Stock and Horse Show
to be held in the new livestock pavil­
ion at Ak-Sar-Ben field November 3
to 9.
Nebraska’s bank guaranty fund

is m better condition today than at
any time since bank failures, in large
numbers, began eight years ago, says
Van E. Peterson, secretary of the
guaranty fund commission, in replying
to published criticisms from other
states, of the guaranty system.
Almost all of the 47 millions of dol­
lars that depositors in weak or failed
banks have received from the bank
guaranty fund are for losses in the
last seven years, Mr. Peterson pointed
out.
“ The depositors in the state banks
of Nebraska have not lost a single dol­
lar, nor will they lose one,” said Mr.
Peterson. “ Losses are being liqui­
dated by the commission today at the
rate of a million dollars a month.”
Mr. Peterson explained that as soon
as a bank was closed, 50 per cent of
the losses were paid as soon as the
depositors’ claims are passed upon by


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Federal Reserve Bank of St. Louis

the courts, another 20 per cent in
about six months, and the remaining
30 per cent over a period of three or
four years.
Total claims against the guaranty
fund at the present time total a little
more than 24 million dollars. The
commission expects to reap 8 million
dollars in cash from the listed assets
of the failed banks of 40 million dol­
lars.

and southern states, as a speaker to
tell about the work that is being done.
Frank Boyd has been made chair­
man of the general committee in
charge of the arrangements for the an­
nual convention of the Nebraska
Bankers association, which will be held

On August 1, the First National
Bank of Omaha celebrated its sev­
enty-first birthday. The bank, in an
announcement of its anniversary, said :
“ On August 1, 1857, Kountze Bros,
founded a banking house in a small
wooden frame building.
“ They had faith in the progress of
the city. They appreciated the im­
portance of the location, the sturdy
stociv of the settlers, the rich soil suit­
able for agriculture and live stock.
“ This week that institution— the
First National Bank of Omaha— cele­
brates its seventy-first birthday.
“ For nearly three-quarters of a cen­
tury we have kept pace with the
growth and development of Nebraska.
“ For three generations we have fur­
nished our customers with a personal
and friendly service.”
Fred Thomas, vice-president of the

First National Bank of Omaha, has
returned from a visit to eastern points,
including New England and the city
of New York.
Denman Kountze, vice-president
of the First National Bank of Omaha,
is spending his summer vacation at
Wianno, Mass.
The bank guaranty fund commisesion of Nebraska has retained Van

E. Peterson as secretary; C. M. Skiles
of general counsel; G. A. Bryant as
manager of the real estate department;
G. R. Buckner as assistant secretary;
and C. G. Stoll, assistant secretary.
The Nebraska Regional Clearing
House Association, organized recent­

ly at Fremont by the bankers of the
five counties in the Fremont district,
has attracted nation-wide attention.
Not only have various financial pub­
lications printed articles about the
clearing house and its work, but Dan
V. Stephens, president of the Fremont
State Bank and the guiding spirit in
the organization of the clearing house,
has been much in demand in eastern

F r a n k B oyd

at the Fontenelle hotel in Omaha O c­
tober 17 and 18.
He will be assisted by Denman
Kountze, Gwyer H. Yates, C. L.
Owen, J. F. Coad, W. P. Adkins, C.
F. Anderson, J. R. Cain, Jr., Emil
Kavalec, John S. McGurk, M. D.
Cameron, Lawrence Brinker, C. W.
Mead, FI. M. Bushnell, E. D. Morcom and G. A. Gregory.
J. B. Owen will head the entertain­
ment committee and F. C. Horacek
will be chairman of the reception com­
mittee.
Among the speakers who have al­
ready been secured by Secretary W . B.
Hughes are Dr. O. R. Sweeney, head
of the chemical engineering depart­
ment of the Iowa State college of ag­
riculture at Ames, Iowa, who will tell
about the model plant he has built for
the conversion of cornstalks into use­
ful commercial products; and F. R.
Smith, commissioner of banking of the
state of South Dakota.
F. M. Wetherald, president of the
Thayer county bank of Hebron, Nebr.,
and formerly a state senator and rep­
resentative, and founder of the Heb­
ron Hour mills, died July 19 at the
age of 73.

Central Western Banker, August, 192S

14
John J. Vlasak, organizer and
cashier of the Bank of Prague, and
formerly president of Group No. 2 of
the Nebraska State Bankers associa­
tion, died fuly 14. He had come to
America from Czecho-Slovakia in
1868. He organized the Bank of
Prague in 1906.

The annual Nebraska potato tour
August 13 to 16 inclusive, started in
Kimball county and moved north
across the state to end the fourth day
in Sheridan county, according to
Prof. H. O. Werner of the agricultural
college, and Wm. Morrow of Alliance,

manager of the Nebraska Certified
Potato Growers Co-operative, who
were in charge.
The tour included Kimball, Scottsbluff. Morrill, Box Butte, Dawes and
Sheridan counties. Stops were made
at many farms and test plats.
Plans were made to furnish trans­
portation and otherwise entertain dele­
gations from the southern states to
which Nebraska has been sending
certified seed potatoes in the past and
also to other parties interested in fu­
ture supplies. Many southern states
have been well represented in the past.
Nebraska certified seed potatoes arc
said to be the best that can be pur­

The Market Trend
With the tremendous sums which insurance
companies and other large institutions of today
have to invest any short vacation from buying
means an enormous accumulation.
During the past few months there has been
a cessation of buying and also a large reduction
in the total amount of new offerings.
Such a situation should mean extremely heavy
buying this fall with few bonds on the bankers’
shelves.
All this should have a beneficial effect on the
bond market and at present low prices, invest­
ors should be able to make profitable purchases.
W e have prepared a list of bonds which we
believe are unusually good values at prevailing
prices and will be pleased to send this list upon
request.

SMITH, LANDERYOU & CO.
640 First National Bank Building
OMAHA, N EBRASKA
Telephone JA ckson 5065

Central Western Banker, August, 1928

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Federal Reserve Bank of St. Louis

chased for the southern growers, so
these growers are interested in meth­
ods used in western Nebraska, to keep
up the high standard of quality.
Among the features of the tour was
the seed improvement plats and the
disease study plats raised this year in
the potato district under the direction
and observation of Professor Werner
and Dr. R. W. Goss of the University.
The effect of planting and harvesting
dates and of cultivation methods on
the value of the crop for seed is also
being studied.
In the seed improvement work,
Professor Werner is developing the
best of seed for Nebraska growers to
use. He will have a large supply
available for use next spring, and
should have enough to supply all cer­
tified seed growers with all their seed
in 1930. Dr. Goss is studying pre­
vention and control of such common
diseases as spindle tuber, mosaic, wilt,
and scab.
Interest is running high in western
Nebraska in the certified seed potato
business. About 200 growers from all
over the district gathered at Scottsbluff recently to get the latest first
hand information about cultural
methods and disease control. They
went right out into the 275 test plats
with Professor Werner and studied
the work that is being done for their
benefit. Certified seed plats showed
up well over those from uncertified
seed.
Irish Cobblers are being grown
more extensively for certification now
in the western potato district. This
means that eastern and southern Ne­
braska will have a fine source of good
seed stock in the future. Previous to
this year, most of the potatoes have
been of the Triumph variety, a kind
that will not do well in eastern and
southern parts of Nebraska.

Reports Record Resources

Total resources of the Chase Na­
tional Bank of the city of New York
established a new high record for the
bank of $1,103,742,061 as of June 30,
according to the statement of condi­
tion published in response to the call
of the comptroller of the currency.
This represents a gain of $40,623,432
over the previous record reported on
February 28 and compares with $1,042,513,993 as of June 30, last year.
The current statement does not give
effect to $40,000,000 of new capital
funds, $30,000,000 of which were paid
into the bank’s capital and surplus as
of July 2, and $10,000,000 of which
were added to the capital funds of the
Chase Securities Corporation.

15

The Middle Man In the World’s Money Market
By J o h n P. M u l l e n ,
Assistant Educational Director, Investment Bankers Association of America
IIIIIIIIIIIIIIIIIIIIIIIIIIIIIMIIMIIIIIMIIIIIIIIIIIIIIIIIIIIIIIIIIIIlllllllllirillMIII!|iilllllllllllllllllil|||||i:illllllllllllllllllllllllllllllllllllMIIIIIMIIIMIIIIIIIIIIIIIIIUIIIIIIIIIIIIIIIUIIIIIIIIIIIIIIIIII|llllllllllllllll

“ JEALO US OF ITS GOOD N A M E !”

“ The Investment Bankers Association is very jealous of its
and credit and to sub­
p U B L IC confidence,
good name. It seduously seeks to exclude houses of questionable
mit them to the public.
* the foundation stone
character from its membership ; the house seeking membership
In this effort it has be­
of all business, is par­
today must have a high record of honesty, experience and ability.
come
what has been
ticularly the determin­
Perhaps there is a bit of selfishness in this vast work of the as­
aptly
termed
a great
ant in the work of the
sociation in finance. Certainly there is a laudable pride.’'
financial laboratory and
investment banker. He
iiiiiiiiiiiiiiiiiiiHiiiiiiiiiiiiiiMiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiMiiiiiiMiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiuiiuiiiiiiiiiHiiiiiiiiiimiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiimiiiiiiiiiiniiiii
bureau of standards.
stands as essential mid­
Through its nineteen standing com­
Lacked Much Background
dleman in the money markets of the
world, an agent whose function it is
Up to the period of the organization mittees a vast amount of research
to gather from all parts of the land of the Investment Bankers Associa­ is carried on, and the findings
the savings of individuals and the tion of America the investment busi­ are made available to every interested
profits of business and to direct this ness lacked much in background. Al ­ investor, business enterprise and poli­
capital into channels from which legi­ though that element of moral responsi­ tical subdivision in the world. To its
timate governmental and corporate en­ bility to the borrower and the lender, business conduct committee come such
terprises can draw the funds neces­ which characterizes the investment questions as touch upon ethics and the
sary for their development. He is a business of the present day, was gen­ practices of the investment houses in
reliance in enterprise, a guardian in erally evident in the practice of recog­ their day-to-day relations with the in­
vesting and the borrowing public. This
prosperity and a dependence for re­ nized firms, there was great need of
lief in times of political and corporate
established precedent and of a stan­ committee is in a manner disciplinary,
financial stress. But only in the meas­ dardization in the methods and princi­ but, since the association is in no way
ure in which the investment banker ples of the profession to insure its paternalistic, it must rely entirely upon
invites and retains confidence in his sound growth. Co-operation between the might of right. Actually, this
ability and integrity is he effective in individual houses or between the vari­ committee is a very effective moral
the very necessary service he seeks to ous groups lacked correlation. On the force. The business problems com­
perform.
other hand the business of investment mittee concerns itself with the internal
functions of the bond house, and en­
It was to foster and to justify the banking was expanding amazingly.
almost universal confidence which the The industries and the numerous deavors to determine methods of
business of making and selling securi­ ous political subdivisions were de­ greater efficiency. The committees on
industrial, foreign, government and
ties has won for itself in this country manding capital in larger and larger
farm loan, irrigation, public service,
that the Investment Bankers Associa­ amounts. Among investors there was
railroad,
municipal, real estate and in­
evident
a
growing
understanding
of
tion of America was formed in 1912.
It was conceived to have two main finance and credit and a better appre­ vestment trust securities comprise men
functions: to test and determine the ciation of those “ intangible essentials” who are specialists in these particular
which the investment banker has to classes. Respectively, they study the
most efficient and equitable methods ot
supplying long-term credit to estab­ sell. With this rapid expansion of the problems that develop from time to
lished, worthy enterprises, and to draw business, the need of more thorough time in connection with these types of
and systematic investigation of the securities. Often they employ tech­
together the recognized, reputable in­
vestment firms of the country into a securities for which the investment nical help— attorneys, accountants, en­
gineers, and, when their findings arc
co-operative organization. More spe­ dealers assumed sponsorship grew.
complete, they lay before the Board
But
no
one
firm
coud
afford
the
ex­
cifically, it sought, in the words of
pense entailed in determining, cor­ of Governors a thoroughly scientific
its constitution, “ to promote discus­
statement of the problems, together
sion of subjects of importance to in­ relating and applying all the necessary
with such solutions as seem practical
vestors and to dealers in securities, to and complex practices and principles
afford protection against loss through that are a part of the business of un­ and thorough. Other committees have
to do with taxation, commercial paper,
negligent or irresponsible dealers, to derwriting and distributing securities.
Here lay the opportunity and prob­ by-laws, education, finance, member­
surround the offerings of its members
ship, publications and legislation.
with greater safeguards . . .” Thus lems for an association.
Seventeen Groups
It has been, and is, the work of the
it premised its very existence on a
All
of
these
committees function un­
Investment
Bankers
Association
of
high sense of the duty of the invest­
America to find and apply the sound­ der the supervision of a Board of Gov­
ment banker to the investing political
est practices and principles of finance ernors in which is vested the admindivisions of the world.


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Federal Reserve Bank of St. Louis

Centrai Western Banker, Alienist, 1928

16
istration of all affairs of the associa­
tion. Geographically, the association
is divided into seventeen groups, in­
cluding Canada, for the purposes of
greater co-operative organization and
the more direct handling of problems
peculiar to their localities.
Space does not permit more than a
few suggestions of the dollar-andcents value of the work of this asso­
ciation and its committees. The
municipal securities committee, for ex­
ample, has saved literally millions of
dollars in taxes for the people of this
country. Through the efforts of its
public service committee impartial, de­
pendable and competent service has
been rendered the public service com­
missions throughout the country, and,
where formerly uncertainty was com­
mon, there is now efficient regulation

that has been of direct benefit to all
the people. Its legislation committee
is ceaselessly active in an effort to
bring about more effectively designed
laws against fraud and the security
charlatan. Many of the more work­
able Blue Sky Laws and Fraud Acts
now in force are directly traceable, in
part, to the efforts of this committee,
working with capable and public spir­
ited officers and legislation.
In each class of financing the asso­
ciation has been of similar service. In
its scientific research into the different
types and classes of securities and the
legislation governing them, it has al­
ways evidenced a fair and conservative
policy. Its service has reached di­
rectly with tangible value into every
household and every line of business
in America and, in some degrees, into

Europe and Latin America. And, al­
though most of this work, because of
its technical nature, has been little ap­
preciated by the general public, the ef­
forts which have been felt directly,
like the association’s active and unre­
lenting fight against fraud and the
service of its educational department
in broadcasting practical and sound
information on all investment subjects,
have been fully repaid in the confi­
dence which the government, business
and the public have extended to the
association and its members.
The Investment Bankers Associa­
tion of America is very jealous of its
good name. It seduously seeks to ex­
clude houses of questionable character
from its membership; the house seek­
ing membership today must have a
high record of honesty, experience
and abilitv. Perhaps there is a bit of
selfishness in this vast work of the as­
sociation in finance. Certainly there
is a laudable price. But it is that kind
of pride and selfishness which has ex­
tended benefits to every form of gov­
ernment and enterprise and to every
investor in the nation.
Club Events Changed

FEW depositors are
investment-wise
Many bank depositors know little about
investment, and need advice from bank
officers in putting their surplus funds to
work. Bankers can depend upon The
National City Company for bond offer­
ings because National City bonds are
carefully selected and worthy of recom­
mendation. Experienced bond men at
our offices in over fifty leading cities are
always ready to make helpful sugges­
tions. Our special Bankers’ List will
keep you in touch with attractive current
offerings. We will gladly send it to
you regularly.

The National City Company
National City Bank Building, New York
Offices in more than 50 leading cities throughout the world
BONDS

-

SHORT

TERM

Central Western Banker, August, 1928


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Federal Reserve Bank of St. Louis

NOTES

-

ACCEPTANCES

The eight-day Nebraska state fair
this year will change the order of
events considerably in the boys and
girls club program, according to L. I.
Frisbie, state club leader and superin­
tendent of Class R. Entries for the
4-H club baby beeves and all other live
stock, except poultry, must be in Sat­
urday, August 11. Poultry and other
4-H club entries close Saturday, Aug­
ust 25.
Judging of all 4-H exhibits begins
Saturday morning, September 1, this
year. Formerly all judging started on
Monday. Last year’s Wednesday
program, which consisted of the health
contest, pig showing contest, baby beef
showing contest, and dairy showing
contest, has been changed to Monday,
September 3, this year.
The Tuesday and Thursday pro­
grams, consisting of all demonstra­
tions, the baby beef sale on Tuesday,
parade before the grandstand, and the
announcement of winners of demon­
stration and judC-n" contests Thurs­
day, will be the same as in past years.
All judging contests, which were
always on Thursday other years, will
start at 7 :30 Wednesday morning,
September 5. The style show, weed
and weed seed identification contest,
the style show in front of grandstand,
and the presentation of the health
champions will also be on Wednesday.
A new feature of the 4-H club pro­
gram on Friday, September 7, will be
the oral reasons given by the champ­
ion judges of all the contests.

17

The Telephone Industry and Banks
VY7 H1LE our revenues may seem
enormous, I will break them
down into smaller units. The aver­
age monthly revenue per telephone in
the Bell System for last year was
$5.76, expense $3.92, taxes 48c, leav­
ing a net earning of $1.36, from
which was deducted 32c for interest
and 70c for dividends, leaving a bal­
ance available for contingencies and
surplus of 34c, or slightly more than
lc a day per telephone. This bal­
ance remaining was re-invested in the
business and accrues to the benefit of
the telephone users. This shows
the small margin of safety on which
we operate.
There is a great difference between
the telephone business and that of a
manufacturing or industrial business.
A manufacturing company’s fixed
capital investment is relatively small
compared with the volume of its busi­
ness and ordinarily has but a small
portion of its total capital tied up in
plant and machinery. It may extend,
diminish or discontinue its business as
it desires. It is under no obligation
to continue in business. During per­
iods of unusual business activity it
turns over its working capital a num­
ber of times and generally makes
large profits. Correspondingly, dur­
ing periods of depression, its profits
may be little or none, but its require­
ments for new capital are practically
none. The telephone business is, how­
ever, different. It is permanent in its
character and available chiefly for
telephone purposes. It must remain
in the same place and in the same
kind of business and be ready to ex­
tend its services when and where the
needs for it demand. It can not turn
over its capital as does a manufactur­
ing company, to permit large earn­
ings. Practically its entire capital is
invested in fixed assets, such as toll
lines, buildings, and central office
equipment. Its growth and construc­
tion are continuous and it must pro­
vide additional facilities in good times
or bad, so that large sums of money
are necesesary annually to take care
of the growth of the Telephone busi­
ness. The amount which the Bell
Companies plan to spend during the
single year of 1928 on gross addi­
tions to their facilities for giving tele­
phone service, is more than $420,000,000, which is considerably more than
the entire cost of the Panama Canal.
The expenditures for these additions
will be made in thousands of differ­
ent communities covering every state
in the Union.


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By R. B. J o h n s o n ,
Treasurer, Northwestern Bell Telephone Co.

How Financed

Probably the question arises in your
minds as to how we find the funds to
build this vast amount of additional
plant each year. A portion comes
from the provision made by charges
against earnings to cover deprecia­
tion, a part from undivided profits, or
the one cent per day per telephone,
previously referred to, while some
comes from salvage of plant removed

from service. A substantial portion,
however, remains which must be fi­
nanced. There is only one source
from which these funds may be ob­
tained and that is from the conserva­
tive investor. From the savings of
several hundred thousands of these
people have been built the plant of
the Bell System. To attract the sav­
ings of these investors we must have
their confidence that the business will

C o m m ercial P a p e r and A ccep ta n ces
S hort and L ong T e rm B onds
Investm ent T ru sts

W e can supply your needs in any m aturity of thirty
days or longer at rates from 4 3<t% to 7%.
Please send for our lists

CLARKE, LEWIS & CO.
318 SOUTH N IN E T E E N T H STR EET
OMAHA

fÆm
Central Western Banker, August, 1928

18
be well conducted, that it has a sound
financial policy and that they will be
fairly paid for the use of the money
which they put into the business.
The Bell System accepts its re­
sponsibility for a nation-wide tele­
phone service as a public trust. Its
duty is to provide the American pub­
lic with adequate, dependable and
satisfactory telephone service at a rea­
sonable cost. To attain this end, it is
the policy to pay only reasonable regu­
lar dividends. Earnings must, of
course, be sufficient to permit the best
possible Telephone service at all times
and to provide a reasonable payment
to stockholders with an adequate mar­
gin to insure financial safety. Earn­
ings in excess of these requirements

SHORT

TERM

will either be spent for the enlarge­
ment and improvement of the service
furnished, or the rates charged for
the service reduced. This is funda­
mental in the policy of the manage­
ment.
Who owns the Bell System? The
American Telephone & Telegraph
Company owns and operates the Long
Distance business and owns for the
most part a large majority, and in
many cases, all of the common stock
of the Bell Operative Companies, of
which the Northwestern Bell is one.
The capital stock of the American
Telephone & Telegraph Company,
however, is owned by thousands of
telephone users.
Its stockholders
numbered 7,500 in 1900 and more than

INVESTMENTS

FOR

BANKS

sh orts
obligations h a u e.b een pu r­
chased by more

6,ooo

banks in the U nited States.

G e n e r a l M o to r s
A c c e p t a n c e C o r p o r a t io n
Executive Office * BROADWAY at 57 ™ ST. * New York City
Capital, Surplus & Undivided
Profits . $52,156,000

Central Western Banker, August, 1928


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Federal Reserve Bank of St. Louis

423,000 at the end of 1927. No one
person owned as much as one per
cent of the capital stock, 37 per cent
of the stockholders owned from 1 to
5 shares, and 80 per cent from 1 to
25 shares. The total securities of the
Bell System in the hands of the pub­
lic on December 31, 1927, amounted
to nearly $2,272,000,000.
A M ILLION COPIES

Over a million copies of agricul­
tural and home economics educational
material are now issued and distrib­
uted per year to people of Nebraska
by the agricultural college extension
service, according to a summary of
the past two year’s activities made in
the office of W. H. Brokaw, director
of the extension service.
The entire service is furnished as
a part of the educational program of
the University of Nebraska. It is
given without direct cost to the peo­
ple who receive the information. It
amounts to about eight copies or cir­
culars, leaflets, lists, report blanks,
etc., per farm family in the state. It
includes informational material for
boys’ and girls’ clubs, women’s clubs,
co-operators with the extension ser­
vice, and individuals who request spe­
cific information. It covers all phases
of farming and home making applic­
able to Nebraska.
In addition to the material issued
by the extension service, this organi­
zation distributes several thousand
technical bulletins and reports of the
Nebraska
agricultural
experiment
stations and also keeps on hand a local
supply of all United States Depart­
ment of Agriculture bulletins that are
applicable to Nebraska.
An analysis of the summary shows
that during the past two years 386,000
copies of extension circulars have
been mimeographed. Almost an equal
number of leaflets and posters have
been printed and mimeographed. E x­
tension service projects requiring
definite reports from co-operating
farmers and their families have used
over 600,000 copies of report forms
and blanks.
It has been the policy of the or­
ganization to send copies of new
printed circulars to libraries and in­
dividuals on a permanent mailing list.
After this is done, circulars are dis­
tributed only upon request thru an
organized project or by personal let­
ter or visit to the agricultural college
or county extension agent’s offices.
This policy cuts down waste as much
as possible.
County Extension Agents have been
entirely responsible for the distribu­
tion of material within their counties.

19

Volum e o f July
Financing Small
'T ' HE volume o f new investment fin­
ancing in July was the smallest for
any single month since August, 1925.
This decline was due partly to the
usual slackness during the summer
months and partly to present condi­
tions in the general bond market.
New bond and note offerings in July
totaled only $277,356,200, according to
the compilation of Lawrence Stern &
Company, Chicago investment bank­
ers. This compares with total offer­
ings of $422,765,800 in July, 1927, and
$619,183,800 in June, 1928.
It is interesting to note that last
month’s financing was led for the first
time by real estate offerings, totaling
$82,193,000 and consisting of 110
separate issues. Only in the real es­
tate field did new offerings hold up to
the level of former months. All other
classifications showed declines when
compared with July a year ago and
with the preceding month.
The volume of real estate offerings
is evidence of the fact that real estate
bonds are less affected by general mar­
ket conditions than other classifica­
tions.
The total of all offerings for the
first seven months of 1928 fell below
the total for the corresponding period
in 1927 by slightly less than 10 per
cent. This decline resulted from sub­
stantially fewer offerings in the last
three months.
Last month’s offerings, excluding
tax exempts, included 173 separate is­
sues. This compares with 184 such
issues offered in July a year ago and
with 174 in June, 1928. There were
63 major issues of a million dollars
or more brought out in the market
last month compared with 81 in June
and 108 in May.
O f the 63 corporate and foreign
issues in the million dollar class o f­
fered last month, New York invest­
ment bankers underwrote 23, total­
ing $91,100,000, compared with 32
totaling $304,400,000 offered in June.
Chicago dealers regained second place
with the underwriting of 18 issues to­
taling $52,650,000 in June. San Fran­
cisco took third place while Boston
followed in fourth.
Lawrence Stern & Company month­
ly bond review concluded as follow s:
“ The general downward tendency
of the bond market which has been
in evidence for some time continued
during July, and the lowest prices for


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Federal Reserve Bank of St. Louis

two years were registered in highgrade corporate issues and government
bonds.
Reasons For Decline

“ The reasons for the decline and
the factors which may bring about
either a recovery of a continuation of
the current weakness in the bond mar­

ket are too well known and have been
too thoroughly discussed in financial
circles to justify repetition at this
time.
“ A number of observers have point­
ed out that the present price of highgrade issues (many of which have
registered declines of from five to
ten points) apparently represents a
greater drop than is justified by un­
derlying conditions, and believe that
the present is an excellent time to
pick up bargains in the bond field or
to accumulate holdings against the in­
evitable future rise. In this connec­
tion, it has been stated that a num-

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Every sale of Investment Securities is made with
a desire to assure us your regular business.
Our list of Bonds is diversified
and sound.

R ufus E. L ee & C ompany
Investment Bankers
204-210 City National Bank Building

Omaha
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A Complete Banking Service
The Midland Bank offers exceptional facilities for the transaction
of banking business of every description. Together with its
affiliations it operates over 240c branches in Great Britain
and Northern Ireland, and has agents and correspondents in
all parts of the world. The Bank has offices in the Atlantic
Liners Aquitania, Berengana and Mauretania, and a foreign
branch office at 196 Piccadilly. London, specially equipped for
the use and convenience of visitors in London.
AMERICAN DEPARTMENT : POULTRY, LONDON. E.C.2

MIDLAND BANK
LIMITED

HEAD OFFICE: 5 THREADNEEDLE STREET, LONDON, E.C .2

Central Western Banker, August, 1928

20
ber of large insurance companies have
appeared in the market recently, mak­
ing substantial purchases at present
levels, and it may be that this institu­
tional investing is a precursor of a
buying movement, initiated to take
advantage of present low levels.
“ Many originating houses have been
holding important issues with the ex­
pectation of bringing them out when
market conditions become more favor­
able. Probably the first step toward
a recovery in the general bond mar­
ket will be the decision on the part
of such institutions to release these
issues at the present level of prices.
Such action would probably be fol-

lowed by very considerable buying, in
recognition of the obvious cheapness
of the bonds; and a buying movement,
once started, would probably carry the
price of such issues one or two points
upward, which, in turn, would have a
stimulating effect on the whole list.
Many observers believe that this will
happen during August or September.”
Septic Tank Demonstrations

Arrangements have now been com­
pleted to hold septic tank building
demonstrations in five more counties
of Nebraska. Farms have been se­
lected and other details arranged for
good meetings at each place, according

Where Banks
Deposit Money
One

bank

every

six

ou t of
in

the

to Id. T. Baker, assistant agricultural
extension engineer of the agricultural
college.
Mr. Baker and H. J. Young of the
Portland Cement Association help the
farmer put in the forms and run the
concrete for the tank in one day, and
then invite in the general public for
the second day’s meeting and demon­
stration.
R. E. Talich, who lives one mile
north of Giltner in Idamilton county,
put in a tank July 17 and 18.
Gerhard Ohmstede, five miles south­
west of Guide Rock in Webster coun­
ty, put in a tank on July 24 and 25.
Geo. O. Loos, six miles south of Lin­
coln on the First street road put in a
tank on the same two days, fulv 24
and 25.
Fred Anderson, living one-half
miles east of Walton, put in his tank
on July 26 and 27. Lloyd Glover, 22
miles northeast of Broken Bow, in
Custer county, was on the schedule
for July 30 and 31. Frank W. Jenk­
ins, 10 miles southwest of Broken
Bow, put in his tank August 1 and 2.
The last demonstrations were in
Thayer county, one at E. B. Stauber’s
farm August 13 and 14, and the other
at G. B. Archer’s farm August 15 and
16. Mr. Stauber lives four miles
south of Hebron and Mr. Archer
lives 2 miles north and 1 3-4 miles
west of Belvidere.
The septic tank and tile line make a
sewage disposal system that is reason­
able in first cost and without any ex­
pense for upkeep. Those farmers who
have put them in in co-operation with
the extension service are well pleased
with the results.

U n i t e d S t a t e s has
money on deposit here

CONTINENTAL
N A T IO N A L BANK.
& TRUST COMPANY
or

C H IC A G O

To Consolidate

Announcement of the association of
C. F. Childs & Co. with the American
National Co., to effect one of the most
important arrangements taking place
in investment banking circles, was
made recently by officials of the lat­
ter organization.
Reports of the agreement between
the two companies were confirmed at
the Denver offices of Childs & Co.,
and of the American Securities Co.,
investment banking subsidiary of the
American National Co.
Childs & Co. has built up the larg­
est private wire system in the country
and last year dealt in the huge total
of $4,000,000,000 par value of bonds,
or more than were traded on the New
York Stock Exchange.
He ought not to pretend to friend­
ship’s name
W ho reckons not himself and friend
the same.— Take.

Central Western Banker, August, 1928


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

21

Insurance

W hat Happens W hen the
Policy is Lapsed?
Should a policy with a heavy loan be cancelled
or should it be replaced?
'T ' HE answer seems to depend on
Dividends next 5 yr
617.60 347.96
A who answers. The average in­
Net
payment
(Gross
By W m . L. N isse n so n ,
sured does not like to continue paying
payment less divi­
interest in addition to premium and
dends for next 5
N ew York Life
often answers “ Yes.” Some insurance
years ....................1,198.90 1,358.64
agents with a chance of selling new
Increase in cash val­
ten years older. He must pay the
insurance if the old is cancelled will
ue next five years
870.00 793.96
say “ Yes.” Experienced insurance higher premium rate and start the divi­
Net cost next 5 yrs.
328.90 564.68
men will say “ No.” Suppose we ask dend scale all over again on a new
(Dividend figures from the latest
plain dollar and cents figures and see policy. O f course, it may be argued
(1928) dividend scale and are not
that since his family would receive
what answer they give.
guaranteed as they are dependent on
Let’s take the case
future earnings.)
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii/ iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiin iiiiiiiiiiiiiii
of John Doe. He took
Cost of Continuance
out a policy ten years
ago when he was 35.
Let us analyze this
Last year he had some
“ I f any one at any time, suggests the cancellation of any
table of figures. First
sickness in his family
policy for any reason, reflect that such advice may he colored by
we have this fa ct; that
and borrowed all he
self interest. Think over this quotation from the Insurance Com­
on the ten year old pol­
could on this policy
missioner of New York state: ‘ The laws against tzvisting, if
icy the premium is
(and glad he was that
properly enforced, protect the insured from the loss that inevit­
$28.11 per thousand
it was there to bor­
ably follows the lapsation of insurance in any reputable com­
per year. The prem­
row ). He does not see
pany’ !”
ium plus the loan in­
his way clear to repay­
llllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllM lllllllllllltlllllllllllllllllllllllM IIM IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIM IIIIIIIIIIIIIIIlIIlllllllllllllllllllllllllllllllllllllllllllllllllllllll IIIIIIIIIIHIII
terest total $363.30 a
ing the loan so he is
year or $1,816.50 in
faced with the problem of either can­ only $8,630 at his death he need pur­ the next five years. That is the total
celing and replacing— or continuing chase a new policy for only that of the premium and interest charge.
and accepting the fact that he must pay amount. Well, how much must he pay That is not the cost. To find the cost
for that and how does that cost com­ we must deduct that part of the pay­
the interest.- He knows that if he dies
the amount of the loan will be deduct­ pare with the net cost on his old pol­ ments returned by the Company— the
ed from the settlement, so he feels that icy ?
dividends. Over this period the divi­
his protection has been reduced. (It
CO M PARISO N
dends amount to $617.60 (according
has not, of course, because he has al­ Cost of Continuing a Policy Against
to the 1928 dividend scale.) Deduct­
ready received the amount of the loan
Cost of Replacement
ing- this from the gross payments we
and should credit the policy with that Age at Issue of Policy.............
35
find that 81.198.90 is the actual cash
amount). But he is not interested in Number of Years in Force.....
10 to be paid during the next five years.
bookkeeping. What he wants to get Amount of Policy................... $10,000
In the meantime the pavH"- of this
definitely settled in his mind is— what Amount of Loan (Maximum) 1,370 amount automatically increases the
will my family get and what am I pay­
Cost of Replacecash value by 870.00. This $870.00
ing for it? Now we come to the fig­
Continuance ment
will be available as a straight loan, to­
ures.
Basis Age 35 Age 45 ward payment of premiums due or on
Statement of the Case
$10,000
$8,630 cancellation of the policy.
His premium is $281.10* a year
Ord. Life
Now we come to the analysis of the
($10,000 Ordinary Life Age 35). He
Premium per $1,000
28.11
39.55 figures for replacement. Premium per
had borrowed the full loan value of
Prem. per $10,000 281.10
thousand at present age is $39.55 as
$1,370. The loan interest is $82.20 Prem. per $8,630..
341.32
against 28.11 ten years ago.
and over and above the loan the Int. on loan at 6%
82.20
If the insured feels that he now has
amount of $8,630 will be paid when Gross payment per
protection for only $8,640 we will fig­
he dies. Is that amount of protection
year ................... 336.30
341.32 ure what that amount costs. (Experi­
worth $281.10 premium; $82.20 loan Gross payment next
enced, unbiased insurance men dispute
interest; total, $363.30.
five years........... 1,816.50 1,706.00 the contention that the loan acts as a
Any commodity is worth what it
reduction of protection. However, the
will cost to replace it. Mr. Doe cannot
*A11 figures taken from current rate case against replacement is so strong
buy insurance as advantageously now book and dividend scale, New York
that we can afford not to argue this.
as when he secured this policy. He is Life Ins. Co.
W e can concede, for the sake of argu-


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Central Western Banker, Auaust, 1928

22
ment, the reduction of protection
theory. W e will allow every conten­
tion that can be brought against keep­
ing the old policy and still show that
it is more economical to continue than
replace.)
Supposing that since the insured
now has only $8,630 protection he
needs to buy a new policy for only
that amount to keep his insurance at
its present status. Our table shows
that this will call for a yearly prem­
ium of $341.32. Now the dividends
on the new policy must be figured on
the same basis. He pays premiums on
only $8,630 and receives dividends and
cash value increases on the same
amount. O f course he is relieved from
the payment of loan interest and there
is no loan on the new policy. But—just what does that actually benefit
him? In either case the same amount
will be paid, $8,630, and it will be seen
that if the old policy is continued the
net cost will be $328.90 for the next
five years as against replacement net
cost, $564.68.
Should the policy be continued in
spite of loan and loan interest? Em­
phatically Yes!
In closing, just a word of general
discussion. If any one at any time
suggests the cancellation of any pol­
icy for any reason; reflect that such
advice may be colored by self interest.
Think over this quotation from an
opinion of the Commissioner of In­
surance State of New York,— The
laws (against twisting)-—if enforced
-— protect the insured from the loss
which inevitably follows the lapsation
of insurance in any reputable com­
pany.” Paste that quotation where you
can see it if you are ever tempted to
cancel a policy.
Insurance Companies Surest Pay

The record shows that in one year
821,052 Life Insurance claims were
filed in the United States, representing
an amount totaling $531,819,000. O f
these claims 820,681 in number, re­
presenting a total of $521,284,000
were paid without question. The cases
compromised, rejected or settled by
suit, owing to differences of opinion
as to their legality, amounted to only
one-half of one per cent of the total
number and to only one and one-quar­
ter per cent of the amount claimed. If
the insured fills the condition of his
policy, no contract is more certain of
fulfillment— both in letter and spirit—
than is the contract of the Legal Re­
serve Life Insurance Company.—
James A. Beha.
Storm Loss in Nebraska

Heavy loss was caused by a recent
hailstorm in the vicinity of McCook,
Central Western Banker, August, 1928


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Federal Reserve Bank of St. Louis

Neb., where a tornado and hailstorm
caused $1,000,000 damage. The wheat
was largely in the shock and the
amount of damage has not yet been
computed. The standing corn was
badly shredded by the hail, but a part
of it will be able to make a shortened
crop if the frost does not catch it.
Life Insurance

The question of a sum of money
available immediately as a cash estate
for dependents left behind is an ur­
gent one which every man should face
squarely. Low rates and the chances
of being accepted as a good risk favor
the young man. Get insurance while
you can and while it is cheap for you
is the advise which should be given
young men with wives, children or
aged parents looking to them for sup­
port.— South Bend (Ind.) Tribune.
Kansas Meeting

Chas. K. Foote, secretary of the
Kansas Association of Insurance

Agents, has announced the date for
the annual gathering of the association
as Oct. 18-19. The meetings proper
will be confined to one day, Oct. 19.
However, registration will start the
night of Oct. 18, when a smoker will
be given by the agents at Pittsburg,
where this year’s meeting is to be held.
Headquarters will be the Besse Hotel,
only recently completed, which will
be the scene of all meetings. Charles
G. Blakely, Jr., president of the
Kansas association, has charge of the
program but has not yet completed it.
Mr. Foote also announced recently
that the Kansas association has prac­
tically reached its quota of new mem­
bers as outlined by the National as­
sociation at the New Orleans meeting.
The membership campaign has been
under the direction of William J.
Bauerle of Dulaney, Johnson, Yan­
kee & Priest Agency of Wichita, who
has been assisted by Mr. Foote in put­
ting over a “ mail order” campaign for
the increased membership.

Insurance Tax D ecision
Helps Bond Market
T IFE insurance companies operat^ ing in the Northwest are again in
the market as liberal purchasers of
municipal bonds, due to a recent decis­
ion of the United States supreme court
which relieves the companies from
having to pay an income tax on the
earnings received from municipal se­
curities.
The decision was rendered in the
matter of the action of the National
Life Insurance Company against the
United States. The company main­
tained that the method of determin­
ing the taxes due from the company as
followed by the collector of internal
revenue was such as to amount to ex­
acting payment on account of its ex­
empt securities.
The court of claims had decided the
case in favor of the United States.
'The supreme court, however, reversed
the judgment of the court of claims,
thus prohibiting such method of deter­
mining life insurance company taxes
as would actually bring income from
tax exempt securities within the range
of the imposition of the tax on cor­
poration income now fixed at 12 per
cent.
The Case Involved

With the companies assured of free­
dom of the income from municipal
securities from taxation, a tax exempt
bond yielding 4.25 per cent becomes
equivalent to purchase of a taxable
bond returning about 4.80 per cent.

In the case of the National Life In­
surance Company the collector of in­
ternal revenue treated interest plus
dividends plus rents as gross income
and allowed as deduction the amount
of interest fro mtax exempt securities
increased by the difference between 4
per cent of the reserve fund and inter­
est received from tax exempt securi­
ties. Had all the company’s interest
been received from taxable securities
the tax levied would have been the
same, thus according to the company
there was no advantage by reason of
ownership of tax exempt securities.
The insurance company maintained
that “ the result of the collector’s ac­
tion was unlawfully to discriminate
against it and really to exact payment
on account of its exempt securities,
contrary to the constitution and laws
of the United States. Also that dimi­
nution of the ordinary deduction of 4
per cent of the reverses because of in­
terest received from tax exempt se­
curities, in effect, defeated the exemp­
tion guaranteed to their owners.
The opinion of the supreme court as
delivered by Justice McReynolds said:
“ The portion of petitioner’s income
from the three specified sources which
congress had power to tax— its tax­
able income— was the sum of these
items less the interest derived from
tax exempt securities. Because of the
receipt of interest from such securities
and to its full extent, pursuing the

23

plan of the statute, the collector di­
minished the 4 per cent deduction al­
lowable to those holding no such se­
curities.
“ Thus, he required petitioner to pay
more upon its taxable income than
could have been demanded had this
been derived solely from taxable se­
curities. If permitted, this would de­
stroy the guaranteed exemption. One
may not be subjected to greater bur­
dens upon his taxable property solely
because he owns some that is free. No
device or form of words can deprive
him of the exemption for which he
has lawfully contracted.
“ The suggestion that as congress
may or may not grant deductions from
gross income at pleasure, it can deny
to one and give to another is specious,
but unsound. The burden from which
federal and state obligations are free
is the one laid upon other property.
To determine what this burden is re­
quires consideration of the mode of
assessment, including of course, de­
ductions from gross values. What re­
mains after subtracting all allowances
is the thing really taxed.”
Judging Team Back Home

M. L. Flack, Nebraska dairy exten­
sion agent, who has been with the

American champion dairy judges on
their trip to England, reported for
work at the agricultural college re­
cently. The party landed the 26th of
July. Everyone was feeling fine and
glad to be home again.
Boone county celebrated in honor of
the boys Monday, August 6. They
had a big 4-H club picnic and invited
club members from adjoining counties
to attend also.
While the English team won, Ne­
braska should feel proud of Jesse Bilyeu, the Albion boy who can now be
called the champion judge of his age
in the world. He was the high indi­
vidual judge of the English contest,
and also won the same high honor at
the National dairy show at Memphis
last fall.
The other two boys, Joe King and
Russell Hughes, placed fourth and
fifth in the contest. The English team
with second, third, and sixth individu­
al places, came out 12j4 points ahead
of the Nebraska boys, Mr. Flack said.
Members of the party wrote letters
faithfully and sent them back for pub­
lication in the papers of the state. Mr.
Flack plans to pick out the most inter­
esting parts of all the letters and have
them printed for distribution to every­
one interested. Copies will be sent to

E ndow m ent

anyone who requests them, but the
bulletin will not be ready for a few
weeks.
Another chance to take such a trip
will begin with the annual state fair
dairy judging contest. Nebraska’s
champion team this year will again
compete at the national contest at the
National Dairy Show. It would be
hoping for almost too much to expect
to win again, but the Nebraska team
will try, Mr. Flack says.
Becomes Assistant Cashier

D.
W. Woolery has been elected as­
sistant cashier of the Drovers National
Bank of Kansas City, Mo.
Mr. Woolery has had fifteen years
of banking experience, starting as a
young man with the old Kansas Na­
tional Bank, Wichita, Kansas, in 1913,
where he spent five years, leaving there
to accept active management of the
First National Bank, Channing, Texas,
where he was vice-president and cash­
ier. He spent seven years at Chan­
ning and the past three years has been
special assistant bank commissioner of
Kansas.
Mr. Woolery is married and has two
children and is now living in Topeka,
Kansas, but in the near future will
make his home in Kansas City.

I nsurance

Our Endowment at Age 65 policy has met with
popular favor among our Banker representatives
throughout the Middle Western States.
This, we feel, is due to the unique provisions of
the policy, which include a Guaranteed Annuity
option payable monthly for life and many other at­
tractive features.
Special part time contracts, with liberal com­
missions, are available to Nebraska Bankers.

G uarantee

F

und

L

if e

B

u il d in g

18th and Douglas Sts., Omaha

W e Write
ORDIN ARY LIFE
20 Y EA R ACCUMULATION
20 Y EA R ENDOW MENT
ENDOW M ENT AT 65
ENDOW MENT AT 70
Y E A R L Y REN EW ABLE TERM
TERM INSURANCE FOR 5, 10, 15,
20, 25 AND 30 YEARS
DOUBLE IN DEM N ITY
D IS A B IL IT Y BENEFITS
W A IV E R OF PREM IUM
JUVENILE INSURANCE


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Federal Reserve Bank of St. Louis

Write for a copy o f our folder: “ Where Will You
be at 6 5 ? ”

Guarantee Fund

LIFE

A ssociation
OMAHA •
-

Assets Exceeding $13,000,000.00

Central Western Banker, August, 1928

24
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Illllllllll

111111111111111111111111111111111li 11111111111111111111111111111111111111

1,1,„I,

Nebraska News
C. A . S M I T H , P r e s id e n t
N e b r a s k a B a n k e r s A s s o c ia tio n

W M . IS. H U G H E S , S e c r e t a r y
N e b r a s k a B a n k e r s A s s o c ia tio n

W ill Add To Building’

The First National Bank of Omaha,
which occupies the principal corner
in the business district at Sixteenth
and Farnam streets with an office
building, will erect, beginning this
summer, a four story addition, VicePresident Charles T. Kountze has an­
nounced. The addition will join the
present building on the west, and will
take up the south half of two lots,
and will cost approximately $300,000.
The bank took a 50 year lease on
the ground at an annual rental of
$12,600, together with certain tax
payments.
A part of the addition will be used
to enlarge a store occupying a portion
of the bank structure, but ail the rest
of the additional space will be used
by the bank, Mr. Kountze says. Vari­
ous departments will be rearranged
and the lobby extended to the south­
west.
Poultry Production

“ There seems to be more differ­
ence in poultry flock managers than
in the breeds of chickens they keep,”
says J. R. Redditt, extension service
poultryman of the agricultural col­
lege in commenting upon the records
of the University record flock proj ect.
The project year started November
1, 1927, hence the year is half over.
The average hen laid 64 eggs in the
six months. The best flock averaged
99 eggs, and the poorest less than onethird that many.
Difference between the most com­
mon breeds was less than five eggs per
Central Western Banker, July, 1928

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hen, and medium weight farm breeds
School of Agriculture, has accepted
like Rocks, Reds, Orpingtons, and
the position of cashier with the Se­
Wyandottes laid as many eggs during
curity State Bank of Curtis.
the winter and early spring as the
Mr. Baker is a graduate of the
light breeds such as Leghorns and AnKansas State Agricultural College at
conas.
Manhattan, from which institution he
Mrs. Clarence Jensen of Bennett
holds both his bachelor’s and master’s
has the high record of the state to
degrees.
He has also done some
date. Her Buff Orpingtons have aver­ graduate study at the Iowa State Col­
aged 99 eggs per hen. The White
lege at Ames.
Wyandotte flock owned by Mrs. Elton
Lux of 5204 Colby street, Lincoln, is
Catches Big Fish
close behind with 98 eggs per hen.
W. S. Weston, vice-president of the
Other flocks with averages above 90 Peters National Bank & Trust Com­
eggs are those owned by Mrs. Carl N.
pany, is laying claims to being Oma­
Collister of Paxton who has White ha’s champion fisherman of ’28 as a
Leghorns, and Mrs. F. W . Mack of
result of catching a 35-pound “ musSutton, who has White Plymouth
kie” recently at Sabaskong bay, an
Rocks.
arm of the Lake of the Woods.
In contrast to these records, the
The “ muskie,” Mr, Weston said,
lowest record among Orpingtons is 27 was caught after a two and a half
eggs per hen, among Wyandottes 37 hour fight.
eggs, among Leghorns 31 eggs, and
“ My guide told me the ‘muskie’ was
among Plymouth Rocks 35 eggs.
the fightingest fish he had ever seen
Practically all the flocks are owned
caught,” said Mr. Weston. Mr. W es­
by farmers’ wives or by people living ton is having the fish mounted in Chi­
on the edge of town. The owners cago. Later it will be placed in his
keep the records of egg production and office.
sales, of poultry production, sales, and
losses, and of expenses for feed and
No Bank Assessments
equipment.
They send reports to
The
total assessed valuation of Lin­
their county extension agents once
coln,
Nebraska,
property this year will
each month, and the reports are sent
in to the poultry department of the be only $337,534 higher than last year,
agricultural college where they are tabulations of P. H. Mathews, city tax
summarized and returned each month. commissioner revealed recently. This
In addition to high production, year’s valuation is $116,855,639. The
small increase was said to be due to
poultrymen want proof of that produc­
the loss of all bank assessments, small­
tion, Mr. Redditt says, and the U ni­
er value of Lincoln Traction com­
versity record flock project affords
pany property and a falling off of per­
Nebraska poultrymen the necessary
sonal property because of smaller
forms and blanks, and the incentive to
stocks carried by merchants.
keep the daily and monthly records.
W ith Hotel Company

Edward F. Pettis, vice-president of
the Omaha Trust company, has re­
signed to become finance officer for
the Eppley Hotels company. Besides
owning a number of hotels in Omaha,
Nebraska, and Iowa, the Eppley chain
was recently extended to include two
hotels m Pittsburgh.
President Walter W . Plead of the
Omaha National Bank expressed re­
gret at the loss of Mr. Pettis, but said
that a larger opportunity was offered
him in his new field.
Becomes Cashier

M. L. Baker, who for the past
four years has had charge of the ani­
mal husbandry work at the Nebraska

Buy Bank Stock

A business deal was completed re­
cently whereby the Havens, Nebraska
State Bank was reorganized, J. P.
Gleason purchasing the Chamberlin
stock and assuming full control of the
institution.
M. Shonsey was elected president of
the bank; J. P. Gleason, cashier and
Mrs. J. P. Gleason, assistant cashier.
Ranks Twentieth

For the first time in two years,
Omaha ranks twentieth among cities
of the country in bank clearings, ac­
cording to a report by Bradstreet’s to
the Chamber of Commerce. The
ranking is based on clearings for the
week ending July 19, which were $48,080,502 compared with $40,328,640

25

for the same corresponding week last
year, or a gain of $7,751,862.
Last year, Omaha averaged twentysecond in clearings, and in 1926 was
twenty-first, according to Chamber fig­
ures.
Thus far this year, Omaha has had
four days in which clearings exceeded
10 million dollars.

ition of the automatic machine will
expedite the work heretofore done by
hand.
Meet In Stella

At the meeting of the stockhold­
ers of the Stella, Nebraska, State
Bank, the following were elected as di­

rectors: R. A. Tynam, J. R. Weddle,
C. I. Johnson, Joe Wagner and Dr.
E. W. James. Dr. James is the new
member of the directorate. The old
officers were re-elected as follows:
President, R. A. Tynan; vice-presi­
dent, J. F. Weddle, cashier, Earl W ag­
ner ; assistant cashier, Miss Edna
Hoppe.

Favor Standing Reward

Three hundred and twenty-two
banks in Nebraska have favored the
plan of contributing to a standing re­
ward of $5,000 offered for each bank
bandit killed in this state. At least
seven hundred banks must favor the
plan if it is to be put into operation.
Each bank agrees to pay $7.25 every
time the protective committee of the
association authorizes the payment of
a $5,000 reward.
Banks in seventeen counties are
100 per cent in favor of the plan, as
follow s:
Adams, Butler, Cherry,
Douglas, Fillmore, Garfield, Hamilton,
Hayes, Hooker, Nemaha, Nuckolls,
Otoe, Pierce, Thomas, Thurston and
Washington.
Rules of the association provide that
in no case shall the reward be paid for
the robbery or burglary of a bank that
is not a party to this agreement.

EXPERIENCE

FIDELITY

PERM ANENCE
IN CONTINUOUS EXISTENCE
SINCE 1891

PACKERS
NATIONAL BANK
Affiliation

P A C K E R S N A T IO N A L
COM PANY
INVESTMENT BONDS

Savings Deposits Gain

Savings deposits in Omaha banks
reporting to Federal Reserve bank of
Kansas City, showed a gain of 1,169,462 since July 1, 1927, according to
the Reserve Bank’s Monthly ltview of
August 1. On July 1, 1928, the banks
had $9,251,913 in deposits; Julv 1,
1927, only $8,082,451; June 1, 1928,
$9,033,336.
An increase of 993 savings accounts
during the year was reported. On July
1, 1928, accounts numbered 38,031,
and 37,038 on July 1, 1927.
Bank debits for 26 weeks ending
June 27, 1928, were $1,265,366,000,
or $100,523,000, 8.9 per cent larger
than for the similar 26 weeks of 1927.
Visits David City

J. Rising, vice-president of the Na­
tional Park Bank, New York City,
was a recent visitor in David City,
Nebraska. Mr. Rising began his
banking experience in the First Na­
tional Bank of David City.
New Equipment

The Bank of Creighton, Nebraska,
has purchased and installed a new
electrically motorized posting ma­
chine with which to facilitate the big
volume of business transacted. All
depositors will be issued balance sheets
the first of every month. The instal-


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Federal Reserve Bank of St. Louis

SOUTH

OMAHA

National B an k
¡.Trust Company
O M A H A
“ An Unbroken Record of Seventy Years
is a Guarantee of Safe and
Satisfactory Service”

OFFICERS:
M. T. B arlow , President o f the Board
R. P. M orsman , President
G. H. Y ates , Vice-President
J. C. M cClure, Vice-President
T. F. M urphy , Vice-President
C. F. B r in k m a n , Ass’ t V.-President
P. B. H endricks, Ass’ t Vice-President

R. R. R ainey , Cashier
H. F„ R ogers, Assistant Cashier
E. E. L andstrom, Assistant Cashier
A. L. V ickery, Assistant Cashier
V. B. Caldwell, Assistant Cashier

Central Western Banker, August, 1928

26
Meet In Emerson

OFFICERS
FORD E. HOVEY, President
JAS. B. OWEN, Vice-Pres.
F. J. ENERSON, Vice-Pres.
W. L. PIER, Vice-Pres.
W. H. DRESSLER, Cashier
L. K. MOORE, Asst, to Pres.
H. C. MILLER, Asst. Cash.
C. L. OWEN, Asst. Cash.
T. G. BOGGS, Auditor

OUR B A N K IN G ROOM
M A IN

Y

FLOOR RIGHT

O U are vita^y interested in the quickest
possible handling o f Live Stock Credits.
Because o f our location, and because we

strive to give the most careful attention to all
business entrusted to us, we are able to trans­
mit Live Stock Proceeds promptly.
W e shall be very glad o f an opportunity to
demonstrate that an account with us will be
profitable to you.

The stockholders of the First Na­
tional Bank of Emerson, Nebraska,
held their semi-annual meeting at the
bank recently. The meeting was pre­
sided over by the president, James F.
Toy. They declared their regular
dividend and transacted other general
business. The stockholders were
much pleased with the showing made
by the local officers and the healthy
condition of the bank.
Among the out-of-town people pres­
ent were James F. Toy, Earl H off­
man and James Van Dyke of Sioux
City.
Pioneer Banker Dead

Chris Hirschmann, president of the
First National Bank of West Point,
Nebraska, died at his home from
heart failure.
Mr. Hirschmann was connected
with the First National Bank for more
than 35 years and for the past ten
years, was president of the institution.
He was one of the early settlers of
West Point and has been engaged in
various occupations. He gained his
largest acquaintance over the country
while serving in the court house as
deputy county clerk and county treas­
urer for twelve years.
In Good Condition

Omaha bankers who recently re­
turned from a 2,000-mile soil and crop
study through Nebraska and South
Dakota declared that Nebraska Banks
are in better condition than they have
been for a number of years.
Seven hundred of the 777 banks
in the state are in good condition, C.
J. Claassen, vice-president of the
Peters Trust company, said.
Co-operative creamery concerns are
especially active throughout the state,
Claassen said. He told of seven cash
land sales in the last year near Craw­
ford, where tracts running from 120
to 320 acres were sold from $40 to $60
an acre.
Prague Banker Dies

Stock Yards National Bank
of
South Omaha

John J. Vlasak, resident of Prague,
Nebraska, passed away recently at his
home. Mr. Vlasak was prominent in
banking circles, having been president
of Group Two, Nebraska Bankers As­
sociation.
Goes To Creighton

The Only Bank in the Union Stock Yards

Central Western Banker, July, 1928

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Federal Reserve Bank of St. Louis

Ed Pochop of Anoka, Nebr., has
accepted a position as bookkeeper and
teller at the Bank of Creighton, and
has already taken up his work. Mr.
Pochop was formerly employed in a
bank at Anoka for several years. His
family will join him in the near future.

27

News o f the

Farmers, feeders, and bankers over
the state seem to be greatly puzzled
over the prospects of feeding live stock
this season. Nebraska is blessed with
bountiful crops this year. Summer
rains have been numerous enough and
evenly enough distributed over the
state to practically assure a bumper
corn crop everywhere, but with the
high price of feeders this fall, many
inquiries are coming to Professor H.
J. Grämlich, head of the animal hus­
bandry department at the University
of Nebraska, for advice as to the
prospects for feeding cattle and sheep
this fall. Professor Grämlich and
Harold Hedges of the rural economics
department, college of agriculture,
answer the inquiries in this w a y :
“ Judging from previous market
trends, cattle prices are on the upturn
and will likely reach the peak some­
time between 1929 and 1932. These
high peaks are reached every 14 to 16
years, according to market statistics
that have been followed for nearly 50
years. Beef steer prices may have
been very close to the top last winter,
however,” says Mr. Hedges.
Takes Much Time

“ It takes time to get in and get out
of the cattle business. There has been
a steady decrease in the number of
beef cattle in the United States since
1919. At that time there were over
36 million head, or a decrease of one
third. Last year was the first time
lighter runs had any noticed effect on
the values of livestock. The increased
demand for lighter cuts of beef the
last few years has been a great factor
in breeders discontinuing to develop
their steers until mature.
“ There is no definite information
that the ranges are being restocked.
The memory of past happenings and
high current prices tend to slow up the


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Omaha

expansion of production. The tend­
ency to hold back more female stock
to increase herds the next few years
gives assurance that the market sup­
ply is not likely to be too heavy. The
fact that hog prices are also on the
upturn of a price cycle is still an­
other sustaining factor in the cattle
market for the next year or two.
“ Sheep production is on the upturn
of the present production cycle. The
1928 lamb crop for the United States
was estimated to be 8 per cent larger
than the 1927 crop and 9 per cent
above the 1926 lamb crop. Nebraska
feeders draw most of their feeder
lambs from the west, where the larg­
est increase in lamb crop occurred. The
good prices at which feed lots were
cleared last winter and spring should
not influence feeders when making
their bids for supplies this coming
winter.”
Visit Omaha Yards

On the last lap of a two weeks’ tour
which has given them a glimpse of
the West, particularly the great sheep
and cattle ranch section, and also en­
abled them to spend four davs in Yel­
lowstone Park, a delegation of about
40 Ohio farmers and stockmen were
guests of the livestock interests of
South Omaha recently. The trip en­
abled them to get a close-up of the
second largest stock yards in the world
and they left, high in praise of all that
they saw.
At noon the Ohioans were guests of
the Union Stock Yards company and
the Live Stock Exchange. F. S. Rick­
ard, secretary of the Exchange, acted
as toastmaster. Mr. Rickard told the
visitors something of the work of the
Stock Yards company and the Ex­
change. He stated that the Omaha
market was the second largest in the
world and that it drew on the finest
cattle country of the nation for its
cattle supplies. He expressed the hope
that the Ohio Stockmen would appre­
ciate Omaha’s strategic location as re­

tock

gards cattle supplies and would be­
come better acquainted with it.
Walter Dearth, vice-president of the
Exchange, called attention to the faci­
lities of the Stock Yards, saying that
no Stock Yards could boast of better
equipment. He said that the commis­
sion firms on the Omaha market were
of exceedingly high calibre and that
any dealings the Ohio Men might have
in the future with the Omaha market
could be relied upon as being highly
satisfactory.
Bruce McCulloch, of the JournalStockman, said that it was an unusual
privilege to have such a representa­
tive delegation of live stock men as
guests of the market. He called at­
tention to the fact that one of the men
making an investigation of conditions
in the Middle West following the de­
pression, became impressed with the
fact that every man who had followed
a careful and consistent program of
corn and alfalfa and cattle and hogs,
was on the best of terms with his
banker. Mr. McCulloch pointed out
the great importance of Omaha’s mar­
ket from the standpoint of live stock
supplies.
Editor Kelsey of the Ohio Farmer
thanked the live stock interests for
their hospitality and stated that the
Ohio folks would long remember the
heart-felt welcome of Omaha. Fol­
lowing luncheon a tour of the yards
was made with F. S. Rickard, Bert
Roberts and H. L. Van Ambaugh in
charge.
This is the second tour of its kind,
sponsored by the Ohio Farmer of
Cleveland and arranged by the New
York Central lines. It is known as
the Western Range, Ranch and
Pleasure Tour of Ohio Live Stock
Feeders and Farmers. Ray T. Kel­
sey, associate editor of that publica­
tion, is the tour manager.
Nebraska Grain Crop

The Nebraska crop report compiled
by the state bankers for the state and
Central Western Banker, August, 1928

28
federal division of agricultural statis­
tics in mid-July, estimated an average
yield of wheat for the state, at 18
bushels an acre. The quality of wheat
being harvested was reported excel­
lent in spite of high moisture content.
Nine counties of the state only, re­
ported a farm labor shortage for the
harvesting of the crop. Only the
sandhill counties were found to be in
need of rain.
According to the banker’s reports,
corn generally is in excellent condition,
with a state average of 93 per cent.
The state yield of oats is estimated at
34.8 bushels; of rye, 18.9 bushels and
of barley, 34.5 bushels per acre.
State Fair Judges

The complete List of cattle judges
who will award the premiums at the
1928 Iowa State fair and National
Live Stock show in Des Moines, Aug­
ust 22 to 31, was announced by Sec­
retary A. R. Corey. The judges in­
clude men of national prominence m
this field. They are as follows:
Herefords— Henry W . Marshall,
LaFayette, Ind.
Shorthorns— John Tomson, Dover,
Kansas.
Angus— H. H. Kildee, Ames, la.
Polled Shorthorns—John Tormey,
Chicago, 111.
Milking Shorthorns—John Tormey,
Chicago, 111.
Holsteins— L. L. Gillette, Fostoria,
la.
Guernseys— L. V. Wilson, Excel­
sior, Minn.
jerseys— J. A. McLean, Chicago,
Ilk
Ayrshires— J. A. McLean, Chicago,

111

.

'

Brown Swiss— L. V. Wilson, Excel­
sior, Minn.
Premium offerings in the cattle de­
partment of the Iowa State fair this
year reach the grand total of $40,926
one of the largest sums ever offered by
this or any other state exposition for
such classes. Indications are that the
show will be the biggest in many years.

O f course there was more or less
shop talk. There always is at these
gatherings of sheep feeders, but there
was nothing to indicate any material
change in the feeding operations this
fall. Members of this organization
are regular feeders, not in-and-outers.
It seemed to be the concensus of
opinion that, while feeder lambs would
undoubtedly be high this summer and
fall, there would be plenty of feed, and
it would probably be cheap. The en­
couraging feature of the situation is
the greater consumption of lamb
throughout the country.
THE W O R L D ’S RICHEST

According to Stuart Chase writing
for the New York Times, the follow­
ing list comprises the individuals,
with an estimate of their estate value,
who make up the world’s wealthiest
men :
Henry Ford, Edsel Ford, mo­
tor cars, $1,200,000,000.
J. D. Rockefeller, J. D. Rocke­
feller, Jr., $600,000,000.
Andrew W. Mellon, R. B.
Mellon, banking $200,000,000.
Duke of Westminster, Eng­
land. real estate, $200,000,000.
Edzvard S. Harkness, Anna R.
Harkness, oil. $200,000,000.
Sir Basil Zaharoff, England,
munitions, $125,000,000.
Gaekwar of Baroda, India, in­
heritance, $125,000.000.
Thomas B. Walker, lumber,
$ 100, 000, 000.
Bayne
Whitney railroads,
banking, $100,000,000.
George F. Baker, George F.
Baker, Jr., banking, $100,000,000.
Vincent Astor, real estate,
$ 100, 000,000.
F. W. Vanderbilt, railroadsh
$ 100, 000, 000.
Baron IT. Mitsui, Japan, ship­
ping, $100,000,000.
Simon V. Fatino, Bolivia, tin,
$

100, 000, 000.

Alfred Loewenstein, Belgium,
mines, steel, shipping, $100.000,000.

Sheep Feeders Picnic

The Central Nebraska Sheep Feed­
ers’ association took a day off recently
and held a picnic at Riverside park,
Central City, that was attended by
abount 150 people, including quite a
few from Omaha. There was fried
chicken for everybody, and it is re­
ported that several of the prominent
lamb feeders demonstrated excep­
tional ability as cooks and waiters.
Another enjoyable feature of the
affair was an absence of speeches. The
entire program was of an informal
character and wound up with a dance.
Central Western Banker, August, 1928


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Federal Reserve Bank of St. Louis

tional Bank of Omaha was one of the
principal speakers at the meeting.
Members of the committee in at­
tendance here were Robert Graham of
Alliance, president of the Stock Grow­
ers’ association; Daniel Adamson of
Cody, N ebr.; E. P. Meyers of Oma­
ha ; Reuben Lisco of L isco; C. L. Kil­
patrick of Alliance ; Herman J. Krause
of Alliance; F. Carrothers of W hit­
man; Chris J. Abbott of Hyannis; E.
A. Hall of Alliance; Elmer E. Low of
Hyannis; George Christopher of Val­
entine; Thomas F. Arnold of Merriman; S. P. Delatour of Lewellan;
Henry P. Hansen of North Platte.

Favor Brand Inspection

Members of the executive commit­
tee of the Nebraska Stock Growers’
Association met in Alliance and went
on record as favoring the present
brand inspection as being handled at
the public markets on cattle shipments.
They expressed the opinion that a con­
dition bordering on chaos for the cat­
tle industry would result if this in­
spection was removed, they declaring
that such a move would cause the
market of beef cattle to go down.
L. K. Moore of the Live Stock Na­

Calves Best Bet

“ With all feeding cattle selling rela­
tively high, calves look like about the
safest buy that a feeder can make,”
observed Frank Foy, North Bend
stockman, an Omaha market visitor
recently.
Mr. Foy already has a good sized
string of calves bought for feeding
the coming winter and here is the way
he figures the situation. “ Even if
good calves cost $50 to $55 a head,
they can’t eat over 50 to 60 bushels of
corn by the time they are fat. Corn
isn’t going to be more than 60 cents a
bushel if the present fine prospect ma­
terializes, which means that it will
not take over $36 worth of feed a
calf. Add $10 more for hay, all for
your shipping expense, balance your
interest and such charges against the
hog feed, and you can sell a 1,000
pound yearling for $10.00 per hundred
and still break even. That sort of a
deal is hard to beat.”
Free County Fair

Johnson county will try its first free
county fair this year, and Secretary
Elmer J. Lamb said the exhibits in all
departments of the fair promise to be
the best ever shown. No charge of
admission for either automobiles or
persons will be made at the gate.
Johnson county has made donations
to the fair operating fund, and the
Tecumseh Chamber of Commerce has
donated $1,000. The event will be
held from August 13 to 17.
On the Sunday preceding the open­
ing a sacred concert will be given by
the combined bands of Elk Creek,
Sterling, Cook and Tecumseh. In the
evening, Union church services will
be held, with music furnished by the
Tecumseh orchestra and a chorus of
200 voices.
Friendship is the cement of two
minds. As of one man the soul and
body is.— Chapman.

29
Vice President Resigns

W . L. Pier, vice-president of the
Stock Yards National Bank of South
Omaha recently tendered his resigna­
tion to the board of directors of the
bank, to take effect on September 1.
On that date, Mr. Pier will assume his
new duties as vice-president and di­
rector of the Stock Yards National
Bank of Fort Worth, Tex., and vicepresident and director of the Fore
Worth Cattle Loan Company.
Mr. Pier is considered a young man
for so responsible a position, being
now only 40 years of age. He began
his banking career in 1909 at Mitchell,
S. D., serving as bookkeeper in the
First National Bank at that place, in
1915 he went to Midland, S. D., as
president of a bank, and in 1920 came
to South Omaha. During his banking
experience he has been connected with
banks concerned with the livestock in­
dustry.
Annual Meeting

The annual banquet and election of
officers of the Custer County Bankers
Association was held at Broken Bow
Nebraska, recently, with representa­
tives in attendance from Callaway,
Oconto, Arnold, Comstock, Sargent,
Berwyn, Ansley and Broken Bow. The
banquet was held in the dining room


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Federal Reserve Bank of St. Louis

of the Grand Central hotel and follow­
ing a discussion of the state tax law
the association went on record as be­
ing in favor of the Five Thousand
Dollar reward for dead bank robbers
and burglars as recommended by the
state bankers association. New o f­
ficers elected for the ensuing year
w ere: J. C. Kiker, Broken Bow, presi­
dent ; G. O. Perkins, Arnold, vice-pre­
sident and R. Severin I. Arp, Broken
Bow, secretary-treasurer.
H. D.
Huntington of Long Beach and Ed­
ward Chamberlain of Clarks, Nebras­
ka, were guests at the meeting which
was attended by E. J. Crawford, Com­
stock ; L. W. Wilson, Broken B ow ;
W . F. Powers, Ansley; A. B. Turner,
Berwyn; E. R. Logan, Callaway; R.
S. Runs, Broken Bow; J. I. Christen­
sen, Callaway; Joe Boyer, Callawey;
P. G. Richardson, Broken Bow; J. C.
Kiker, Broken B ow ; George Mary,
Oconto; R. E. Harris, Jr., Arnold; G.
O. Perkins, Arnold; Ira Mills, Arn­
old; Claude Kiker, Sargent; E. S. H ol­
comb, Broken B ow ; Ted Forsyth,
Broken Bow and R. Severin I. Arp,
Broken Bow.
Reports On Tatooing

Dr. W . T. Spencer, live stock commjissioner, Omaha Live "Stock E x­
change, reports 13,808 tattooed hogs

received in the Omaha and Nebraska
City markets during July, the first
month since the regulation requiring
all the hogs to be identified by tatoo
marks, on which the premium of 10c
per hundred pounds is paid. Prem­
iums over and above the regular mar­
ket price amounting to $3,995.26 were
paid on these hogs, the average amount
being about $17.00 per car load.
This is a fairly good showing for
the first month, although several
thousand hogs were received from ac­
credited counties on which the prem­
ium might have been collected had
they been tattoed but they were not,
and therefore no premium was paid.
Advocates Mineral Feeding

John M. Evvard, Iowa State Col­
lege : “ After experimenting for a
number of years with minerals for
beef cattle we have come to the con­
clusion that they are, when properly
compounded, a paying proposition.
In the many experiments con­
ducted, we have secured approximate­
ly $5 greater margins over all feed
costs pei] steer when we feed an
ounce of minerals per head per day, as
contrasted with no mineral feeding.
In these experiments we have allowed
the salt-free choice style in addition
to the special minerals given. The

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Central Western Banker, August, 1928

30
salt factor, therefore, was eliminated
because both groups, the mineral and
the non-mineral fed ones, received
plenty of this essential ingredient.”
“ In the practical tests we allow one
ounce of minerals per steer daily.
This is approximately the correct
amount for 2-year-old and older.
For calves we would not feed quite so
often. W e like to feed the minerals
on the corn or the silage. O f course,
when out on pasture the grain feed­
ing bunk is the proper place to feed
the minerals.
The animal mixture with which we
have been securing such good results
is made up in quite simple fashion. It
consists of equal parts by weight of
“ High calcium carbonate,” limestone
and bone meal. To 100 pounds of
this mixture we add a very little potas­
sium iodide in order to secure the io­
dine which is so essential for the maxi­
mum functioning of bovine animals.”
Larger Wool Crop

: Nebraska sheep owners have 14
per cent more wool to sell this year
than last and the United States as a
whole has 6.5 per cent larger wool
crop than in 1927, says the state and
federal division of agricultural statis­
tics. The average fleece weight in Ne­
braska this year was 7.9 pounds, while
that for the country was but 7.8
pounds.
W ool production in the United
States this year totals 296,114,000
pounds, as compared with 278,037,000
pounds last year. The fleece weight
has increased .1 pound the past year;
in Nebraska the weight of fleece has
increased .2 pounds over 1927.
Nebraska’s wool crop of 2,370,000
pounds is smaller than that of any
other of the corn belt states, except
Kansas, because Nebraska is mainly a
sheep feeding state, filling her feed
lots from the ranges to the west. Dur­
ing the winter she had more lambs on

feed than any other state save Colo­
rado, but these went to market before
shearing time.
Texas sheared the largest wool clip
of any state this year, having a total
of 35,591,000 pounds; Wyoming was
second with a crop of 25,370,000
pounds, and Montana third with a crop
of 25,370,000 pounds. Over 59 per
cent of all the wool grown in the coun­
try was shorn from flocks in the eleven
western states— states west of the Da­
kotas, Nebraska, Oklahoma and Texas
boundaries.
Meet In Yellowstone

The twenty-fifth annual convention
of the Montana Bankers Association
will be held this year jointily with the
Wyoming Bankers Association at Old
Faithful Inn, Yellowstone Park, W yo­
ming, on September 3rd and 4th. The
program for Montana bankers will be
in charge of E. H. Westbrook, who is
president of the Montana Association
and a committee consisting of Chas.
Vandenhook of Bozeman, chairman,
N. A. Telyea, C. H. Hefferlin, A. R.
McDermott and W . R. Waldron. Four
speakers have already been engaged
and more may be added to the list
later. The speakers already engaged
are men of national prominence who
will discuss banking economics, indus­
trial, commercial and agricultural con­
ditions and other interesting topics.
The public is invited to hear these in­
structive addresses.
Dies In Hebron

F. M. Wetherald, pioneer banker
and business man of Hebron, Nebras­
ka, died recently at his home.
He came to Hebron in 1872 in the
early days when this community was
being developed. Together with his
brother, Charles M., he built the Heb­
ron Roller Mills. This mill was ope­
rated for 36 years by the Wetherald
brothers. Shortly after the starting

of the present Thayer County Bank
he became actively engaged in its ad­
ministration and for the past 35 years
has served in the capacity of its presi­
dent. He was also very active in state
politics in the late ’80’s and the early
’90’s, serving both as state senator and
representative.
Assistant Cashier

Olie C. Lewis of East Prairie, Mo.,
is the new assistant cashier at the
American State Bank of Loup City,
Nebraska.
He has had twenty months’ experi­
ence in the banking business and
should be a valuable assistant.
Semi-Annual Meeting

The semi-annual meeting of the
First National Bank of Osmond, Ne­
braska, was held recently. Mr. James
F. Toy, president, of Sioux City, at­
tended the meeting and was accompa­
nied by hL grandson, James Van
Dyke and E. A. Hoffman, chief audi­
tor.
i The usual dividend was distributed
among the stockholders, who ex­
pressed themselves as well satisfied
with the business in the past year.
Directors Meet

The directors of the Page, Nebras­
ka, State Bank held their semi-annual
meeting recently and elected the fol­
lowing new officers: E. C. McEIhaney, president; T. A. Drayton, vicepresident and Hilda Stauffer, cashier.
They added $2,000 to their surplus
which increased that amount to $5,000.00.
Kindly shopkeeper (as small boy
enters)— What does my little man
wish to buy— chocolates?
Small boy— Bet your life I do; but
I ’ve got to buy soap.

B A N K OF N E W S O U T H W A LE S
AUSTRALIA
P A ID -U P

_$ 3 7 ,5 0 0 ,0 0 0

C A P I T A L -------------------------F U N D --------------------------------

.

2 8 ,2 5 0 ,0 0 0

R e se rv e L ia b ility o f P r o p r ie to r s .

.

3 7 ,5 0 0 ,0 0 0

RESERVE

E S T A B L IS H E D

1817

_____§ 1 0 3 ,0 3 0 ,0 0 0

$438,905,640

Aggregate Assets 30th September, 1927
A G E N T S - -F I R S T N A T IO N A L R A N K , O M A H A , N E B R A S K A
G E N E R A L M A N A G E R , O SC A R L IN E S

H E A D OFFICE, GEORGE ST., S Y D N E Y

LONDON OFFICE, 29 T H R E A D N E E D L E ST., E. C.

5 1 8 B r a n c h e s a n d A g e n c i e s in a l l A u s t r a l i a n S t a t e s , N e w Z e a l a n d , F i j i , P a p u a , M a n d a t e d T e r r i t o r y o f N e w
L o n d o n . T h e B a n k C o l l e c t s f o r a n d U n d e r t a k e s th e A g e n c y o f O t h e r B a n k s , a n d t r a n s a c t s e v e r y
d e s c r ip tio n o f A u s t r a lia n B a n k in g B u s in e s s .

Central Western Banker, August, 1928

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

G u in e a

and

31
Deposits Gain

„ ...... „ „ „ „ „ „ „ „ „ „ „ m m , ..................... ..........................................................................................................................................................................................................

South Dakota News
llllllllljllllllllllllllllllllllllllllllllllllllllllllllllllilllll

............ ............ ................................................ .

To Locate In Huron

Clarence W . Ott, who has been as­
sistant superintendent of the South
Dakota banking department since
1925, recently entered the employ of
the Minnesota Loan & Trust Com­
pany, following his resignation from
the South Daktoa department.
Mr. Ott will work in Minneapolis
for a time, after which he will be lo­
cated at Huron.

those of the same date in-1927 by more
than a quarter million dollars, the ex­
act figures being $288,976.30, more
than enough to pay all the expenses
of the county for the coming year.

Established 1856

THE NATIONAL PARK BANK
of

Meet In Centerville

Guests of honor at a banquet held
recently in Centerville, South Dakota,
were W . R. Manley, president of the
Security National and John L. Mit­
chell, president of the First National
bank at Sioux City. Invited guests
from Irene, Lennox, Wakonda and
Beresford were also present. All cities
in Turner county were represented.
Robert Peterson, cashier of the First
National of Centerville, acted as toast­
master at the banquet. Mayor Struble,
a director of the First National, wel­
comed the visitors to Centerville and
the two guests from Sioux City both
gave talks.
After the spread and the program a
permanent county organization was
effected. Robert Peterson was chosen
president; Geo. Nelson, president of
the First National bank at Viborg,
vice-president and Dan Jantz, of Mon­
roe, secretary. The bankers elected no
treasurer.

According to the last statement of
the Springfield, South Dakota State
bank, the prosperity of the bank and
the Springfield territory is witnessed
by the fact that deposits have grown
an even $100,000 and a little more
within the past year, and from ail in­
dications the present deposit mark of
$350,000 is going to be passed before
fall arrives.

NEW YORK
240 Broadway

Branches

240 Park Avenue

399 Seventh Avenue
To be opened during 1928

Madison Square and 26th Street

Broadway at 74th Street

Trusts

DIRECTORS

The seventy-two years’
experience of this bank
should be a vital factor
in your selection of the
right institution to ad­
minister Corporate and
Personal Trusts.

Charles Scribner
Richard Delafield
Francis R. Appleton
Cornelius Vanderbilt
Gilbert G. Thorne
Thomas F. Vietor
John G. Milburn
William Vincent Astor
Joseph D. Oliver
Lewis Cass Ledyard, Jr.
David M. Goodrich
Eugenius H. Outerbridge
Kenneth P. Budd
Frank L. Polk
George M. Moffett
James Forrestal
Charles S. McCain
Thomas I. Parkinson
Harvey C. Couch

Capital, Surplus and Undivided Profits $35,000,000

Clearings Increase

Increase of $100,417.43 is noted in
Sioux Falls, South Dakota, bank
clearings for the month of July this
year as compared to the same month in
1927. Bank clearings for the month
just passed are $7,360,050.54 as com­
pared to $7,259,633.11 last year.
The 1928 bank clearings are show­
ing a considerable increase over last
year to date. The figures for July
show a gain over June of $3,575.22,
the June clearings being $7,276,457.32.
Better general business conditions and
a greater confidence in the banks is
given as the cause of the big increase
in clearings.

FACILITIES

TO


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

BAN K IN G REQ U IREM EN TS

F IR S T N ATIO N AL
B A N K ofCHICAGO
A ffilia ted

Deposits Make Gain

No better index of the prosperity of
a community could be cited than that
shown by the increase of individual
deposits in the banks of Belle Fourche,
South Dakota. The two banks of
Belle Fourche in their report of June
30, 1928, show that deposits exceeded

M EET A L L

FIRST TRUST AND
SAYINGS BANK
Resources Exceed
$ 4 5 0 ,0 0 0 ,0 0 0 . 0 0

Frank O. Wetmore, Chairman
Melvin A. Traylor, President

Central Western Banker, August, 1928

32
Banker Dies

David M. Finnegan, 53, Yankton,
South Dakota banker, resident there
since early childhood, and prominent
in lodge work, died recently following
an illness of several months.
He had suffered a break down in
health after the tragic death of his
wife, daughter, little grandson, and
his wife’s mother in an auto accident
and burning near Beresford about
three years ago, and has never recov­
ered from the shock.
Mr. Finnegan was born in Wilkesbarre, Penn., on Sept. 12, 1874, and
came to Yankton with his parents
while still a child. He served four
years as county auditor, later entering
the banking business and became vicepresident of the First National bank,
from which position he retired about
a year ago owing to poor health. He
had served a year as president of the
South Dakota Bankers Association.
Best Advertising Displayed

When financial advertisers meet
m Utica, N. Y., this September, hun­
dreds of specimens of current financial
advertising in America and foreign
countries will be displayed. Great in­
terest is shown in this Exhibit which
is an annual affair visited by some five
hundred delegates representing banks
and investment houses, large and
small.
This year an exhibit of advertisers
of financial institutions in foreign
countries promises to draw special at­
tention. A number of countries out­
side of the United States will be rep­
resented.
The purpose of the annual adver­
tising exhibit is to enable delegates to
check ideas on art, layout and copy
with the productions of others engaged

in similar work in other communities.
To this end, exhibits are often accom­
panied by typewritten explanations of
the plans embodied in various cam­
paigns as well as results obtained. This
is particularly helpful.
The program of the Convention also
offers opportunity for delegates to dis­
cuss personally various questions aris­
ing from study of the exhibits.
Other features of the program are
departmental discussions on invest­
ment advertising, trusts, savings, busi­
ness development, and advertising
fundamentals, led by speakers on top­
ics pertinent to these various subjects.
Noted speakers also feature the lun­
cheons and banquets during the time
the convention is in session.
Members of the 1928 Exhibit Com­
mittee of the Financial Advertisers
Association are:
Edwin A. Moore, Savings Bank of
Utica, New York.
Robert L. Flather, American Se­
curity & Trust Co., Washington, D. C.
Walter Distelhorst, First National
Bank, Louisville, Ky.
Virgil Allen, Chairman, First Bank
& Trust Co., Utica.

Number of cases handled................163
Number of forgeries handled....... 44
Number of overdrafts, raised
checks, forged endorsements
stopped payment, etc.................. 32
Bank robberies and hold-ups....... 4
Number of short and no account
checks ............................................ 67
Arrests made.................................... 17
Cost to the association........... $ 797.38
Amounts recovered from
members of the assn........ $3,891.00
February 18, 1928, at a meeting of
the protective committee, called by
President Joslyn, it was decided to o f­
fer a standing reward of $1,000, to
be paid upon the arrest and conviction
of any person or persons robbing or
holding up a bank, providing that 200
banks authorized the protective com­
mittee to draw sight drafts on them
at any time this money was needed
for paying the above rewards. Up to
March 20, 1928, there were 215 banks
which signed authorization slips, au­
thorizing the protective department to
draw on them for $5 at any time the
above reward was due and payable.

Protective Department Active

The three Longmont, Colorado,
banks had total deposits of $2,808,000
on June 30, 1928, according to state­
ments issued to the comptroller of
currency. The deposits of the banks
gained $147,000 since February 28,
the date of the issuance of the last pre­
vious statements.
This is a substantial gain in bank
deposits and is the more encouraging
by the fact that a gain has been made
before any crops have been harvested
and sold. All three of the Longmont
banks show gains in deposits of $3,297,000.

Deposits Gain

The work of the protective depart­
ment of the Colorado Bankers Asso­
ciation has been greatly augumented
during the last year by the issuing of
monthly bulletins from the office of
the secretary, for the purpose of keep­
ing member banks fully posted and
forewarned, as far as possible, of such
schemes as were being used by bank
crooks of various kinds to defraud
banks. Number of cases handled by
the official representative of the as­
sociation, the De Lue Detective Agen­
cy of Denver :

N A T IO N A L B A N K O F C O M M E R C E
L IN C O L N ,

M.
CARL
C a p ita l

W E I L , V ic e -P r e s id e n t
B Y R O N D U N N , C a sh ie r
$ 3 0 0 ,0 0 0 .0 0

NEBRASKA

W E IL ,

S u r p lu s

P re sid e n t
E R N E S T C. F O L S O M , V ic e -P r e s id e n t
B. G. C L A R K , A s s ’ t C a sh ie r

$ 1 0 0 ,0 0 0

U n d iv id e d

P r o f it s

$ 1 0 0 ,0 0 0

TYPEWRITERS
AND

A D D I N G M A C H IN E S
EVERY MAKE— LARGE OR PORTABLE
7 Col.
CORONA FOUR
Standard F ou r B ank K e y b o a rd
— W ide Carriage

$ 6 0
F. J. WEISS

“ CORONA”

v :,;.

10 Col.

$ 1 0 0

{Established 1903)

Central Western Banker, August, 1928

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

If a man does not make new ac­
quaintances as he advances through
life, he will soon find himself left
alone. A man, sir, should keep his
friendship in constant repair.
— Dr. Johnson.
Every artist dips his brush in his
own soul, and paints his own nature
into his pictures.— Beecher.

GEO. F. PINN E

C entral T y p ew riter E x c h a n g e , Inc.
1912 FARNAM ST.

A friendship formed in childhood,
in youth— by happy accident at any
stage of rising manhood— becomes
the genius that rules the rest of life.
— Alcott.

OMAHA, NEBR.

How unspeakable the lengthening
of memories in common endears our
old friends.— Eliot.

33
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limili.... in..... hi........1111it1111111111111111111111111111111u1111.....mimiiiiimiiiiiimmmmiimmiiiiimiimiiimmiiiimiiimmiiiiiimmmiM

Become Partners

August Belmont & Co., Denver,
Colorado, announce the admission of
two new partners, John Speed Elliott
and David T. Wells. This is inter­
esting to the financial world in that it
indicates a new departure of the busi­
ness in the distribution of securities,
both wholesale and retail, and an ex­
tension of the activity of this old house
m the financing of corporations and
the origination of securities.
Both the new partners have had
many years of experience in invest­
ment banking and it is to the broader
expansion of this branch of the busi­
ness of August Belmont & Co. that
their chief efforts will be directed.
They are the first partners that the
house has admitted from outside its
own ranks.
The history of the business of Aug­
ust Belmont & Co., which dates back
to the year 1837, includes the financ­
ing of the federal government during
the civil war, the flotation of the gold
resumption loan of 1878, taking a lead­
ing part in the syndicate which floated
during the Cleveland administration
the largest gold loan ever marketed
for the United States government up
to that time, and financing, among
other enterprises, the old Westinghouse Co., the Louisville & Nashville
Railroad, and the construction of the
first Interborough subway in New
York.

December is unusual, as very little
money has come into the valley since
then as the money from crops usually
conies in during the last six months of
the year.
Urges Co-operation

Strong co-operation of the sheep
feeders and breeders of Nebraska with
those of Colorado and Wyoming is be­
ing urged in a move fostered by S. K.
Warrick, of Scottsbluff, Neb., who
represented Nebraska at a meeting
held as Casper, Wyo., of the Nebras­
ka and Colorado representatives of
the wool growers organizations Mr.
Warrick advocated a co-operative
spirit between the feeding organiza­
tions and growers.
There are 787 members in the six
marketing associations of Colorado
and Nebraska representing a feeding
of two million sheep and lambs annu­
ally, according to Mr. Warrick. For
the purpose of advertising lamb pro­
ducts through the National Live Stock
and Meat Board of Chicago in an ex­
tensive way, the payment of a cent per
head on sheep and lambs marketed is
favored by Warrick and other organ­
ized officials.

The report, covering 148 state and
savings banks, one private bank and
13 trust companies, shows the condi­
tion of the institutions last July 10
and is slightly below the total re­
sources reported in the previous call
March 6.
This, however, McFerson explained,
is due to large loans made by banks
in the farming communities, normally
made at this period of the year.
The report lists resources as fol­
lows :
State and savings banks, $48,868,519.38; one private bank, $87,722.67;
13 trust companies, $34,575,055.61.
Total checking accounts July 10,
were $33,638,452 and savings ac­
counts, $20,670,898.18.
The average reserve for the banks
was 24.34 per cent, comprising bonds,
cash and Liberty bonds.

State Reports

Total resources of $75,531,797.60
for Colorado banks and trust compa­
nies were revealed in the recent re­
port of Grant McFerson, state bank
commissioner.

Show Increase

The recent statement of the Mont­
rose, Colorado, National Bank is the
best statement the bank has issued
since September, 1921.
The total resources and the de­
posits are considerably increased over
the statement of December as well as
that of a year ago.
Deposits June 30, 1928, were $431,753 against $357,161 a year ago, show­
ing a gain for the year of $/4,592 in
deposits. The gain since December
31, 1927 was $30,384. The gain since

24

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on any make of equipment.
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Telephones:

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Office, Ja. 1821; Res. Ke 6382 and Ke 3123

O B M c C L IN T O C K C O M P A N Y
M IN N EA PO LIS ,


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-

-

ATI AI AI.

Central Western Banker, August, 1928

34

iou Heard This
Effective Words

Aint It The Truth?

Neither mother or the tired photo­
grapher could make Willie sit still for
his picture. After an hour or more of
“ See the birdie, darling,” and “ That’s
mother’s good boy, the photographer
suggested that perhaps Willie would
keep quiet if mother left the room.
She did and the picture was success­
fully taken. On the way home mother
asked sweetly, “ What did the nice
man say to little precious to make
him be such a nice still boy?”
“ He thed, ‘You thit thtill, you lit­
tle brat, or I’ll knock your block off’,
tho I that thtill.’
A Poor Example

“ Pop, did you go to Sunday School
when you were a boy?”
“ Yes, son, regularly— never missed
a Sunday.”
“ Well, I bet it won’t do me any
good either.”

Observant Salesman

“ I want some collars for my hus­
band,” said the woman, “ but I am
afraid I have forgotten the size.”
“ Thirteen and a half, ma’am?” sug­
gested the shop assistant.
“ That’s it. How did you know?”
“ Men who let their wives buy their
collars for them are always about that
size, ma’am,” explained the observant
salesman.

Safe

Workmen were making repairs on
the wires in a school house one Sat­
urday, when a small boy wandered in.
“ What you doin’ ?”
“ Installing an electric switch,” one
of the workmen said.
The boy then volunteered: “ I don’t
care. W e ’ve moved away, and I don’t
go to this school any more.”
’W ay Behind

Si Brown stood on the corner of
the main street in the busy city and
gazed with open-mouthed astonish­
ment at the stream of vehicles moving
past. Finally he turned to his com­
panion and said in an awed voice:
“ Jee-rusalem, Hiram, they shore
are behind with their haulin’ ain’t
they?”
She Probably Could

“ My dear young lady,” said the
clergyman, in grieved tones as he lis­
tened to an extremely modern young
woman tear off some of the very lat­
est jazz on the piano, “ have you ever
heard of the Ten Commandments?”
“ Whistle a few bars,” said the
young lady, “ and I think I can follow
you.”
»

Lost— Presbyterians

A Presbyterian preacher stopped at
a Kentucky mountain cabin one day,
where a gaunt, ragged woman leaned
on the dilapidated gate. “ Where is
your husband today?” inquired the
preacher.
“ Out huntin,.”
“ Any Presbyterians around here?”
“ Wal, now, thet I don’t know,
stranger, but the hide of every kind
of animal thet my husband ever kill­
ed is tacked up yander on the back of
the smoke-house. You might step
thar an’ look.”
The W est

Men look to the East for the dawn­
ing things,
For the light of the rising sun;
But they look to the West, to the
crimson West,
For things that are done, are done!
The eastward sun is new-made from
The dark of the night distilled;
But the westward sun is a sunset sun,
Is the sun of a hope fulfilled!

Life’s Darkest Moment

The return to the home town of the
“ local boy” who has made good in the
big city is rarely, we have understood,
what it might be. In connection with
this we have to report the particularly
sad experience of a young banker who,
after eight years’ absence, alighted at
the station of the town of his birth.
There was, despite his expectations,
no one on the platform whom he
knew. No one.
Discouraged, he
sought out the baggage master, a
friend since boyhood. To him at least
he would be welcome, and he was
about to extend a hearty greeting,
when the other spoke first.
“ Hello, George,” he said. “ Goin’
away ?”

So out of the East they have always
come,
The cradle that saw the birth
O f all of the heart-warm hopes of men
And of all of the hopes of earth.
For out of the East a Christ arose,
And out of the East there gleamed
The dearest dream and the clearest
dream
That ever a prophet dreamed.
Yea, into the waiting West they go
With the dream-child of the East,
And find the hopes that they hoped
of old
Are a hundredfold increased.
For there in the East we dream our
dreams
O f the things we hope to do,
And here in the West, the crimson
west,
The dreams of the East come true!
— Douglas Malloch.

Clever Man

W ife: “ John, will you match this
piece of silk for me before you come
home.”
Husband: (Suddenly struck by a
happy idea)
“ Oh, at the counter
where the sweet little blonde works?
The one with the soulful eyes and— ”
W ife: “ No. On second thought, I
won’t bother you. Y ou’re too tired
to shop for me when your day’s work
is done, dear.”

TH E C E N TR A L W E ST E R N B A N K E R OF O M A H A , P ub li sh ed

All Alike to Her

H e: “ Honestly, now do you women
like egotistical men as well as other
kids?”
She: “ What other kind?”

by

D eP uy

P ublish ing

Company

416 Arthur Bldg., Omaha, Nebraska
C l if f o r d

D

eP uy,

Publisher

G erald

A.

S n id e r ,

Associate Publisher

R. W.

M

oorh ead,

Editor

Wm. H. Maas, 1221 First National Bank Building, Chicago, Vice-President

Central Western Banker, August, 1928

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

H. H.

H

ayn es,

Associate Editor

m je
Cfjaöe Rational Panfe
of the City of New York

HOTELS OF
HOSPITALITY

57 BROADWAY
Capital_______

___________________ $ 50,000,000.00

Surplus and Profits________________

57,462,411.15

Deposits (February 28, 1 9 2 8 )____

857,757,013.97

OM AHA

OFFICERS
Albert H. Wiggin
Chairman o f the Board

Hotel Fontenelle
L IN C O L N

Hotel Lincoln
S IO U X

John McHugh
Chairman of the Executive Committee

C IT Y

Hotel Martin
CEDAU

Samuel H. Miller
Carl J. Schmidlapp
Reeve Schley
Sherrill Smith
Henry Ollesheimer
Alfred C. Andrews
Robert I. Barr

R A P ID S

Hotel Montrose
S IO U X

FALLS

Hotel Carpenter
And in
Los Angeles,
Hotel
Alexandria
$2 Up.

C O U N C IL

and

ELEVEN
fo r

Your

oth e rs
C o m fo r t

Hugh N. Kirkland
James H. Gannon
William E. Purdy
George H. Saylor
M. Hadden Howell
Joseph C. Rovensky

Vice-President and Cashier
William P. Holly

BLUFFS

Hotel Chieftain
O p e ra te d

Vice-Presidents
George E. Warren
George D. Graves
Frank O. Roe
Harry H. Pond
Samuel S. Campbell
William E. Lake
Charles A. Sackett

Robert L. Clarkson
President

by

EPPLEY HOTELS COMPANY

Second Vice-Presidents
Frederick W. Gehle Franklin H. Gates
T. Arthur Pytermas
Edwin A. Lee
Arthur M. Aiken
Ambrose E. Impey
Alfred W. Hudson S. Frederick Telleer
Robert J. Kiesling
James L. Miller
Otis Everett
Lynde Seiden
Benjamin E. Smythe Wm. H. Moorhead Thomas B. Nichols
Joseph Pulvermacher Harold L. Van Kleeck George S. Schaeffer
Leon H. Johnston
Comptroller
Thomas Ritchie

T H E B A N K E R ’S O P P O R T U N I T Y
Presenting a Few of the Possibilities Open to Him

Surplus
Monthly
and
Investment
Salary §
Deposits
Profits
Capital
$ 1,000.00
$115.00
$70,000.00
150
$5,800.00
Missouri
CHA
$10,000.00
4,500.00
150.00
60,000.00
500
1,700.00
Oklahoma
10,000.00
WAD
5,000.00
100.00
85,000.00
250
5,150.00
Kansas
10,000.00
DHB
6,000.00
135.00
80,000.00
6,700.00
100
Kansas
10,000.00
GJB
7,500.00
175.00
84,000.00
500.00
600
Oklahoma
15,000.00
KLD
9,500.00
150.00
90,000.00
2,000.00
200
Kansas
16,000.00
PBB
10,000.00
145.00
125,000.00
22,500.00
Missouri
200
10,000.00
HSA
11,000.00
150.00
75,000.00
1,800.00
15,000.00
Kansas
250
K02
11,000.00*
175.00
90,000.00
4,000.00
Missouri
15,000.00
500
JAA
14,500.00
150.00
140,000.00
2,000.00
2,000
25,000.00
Kansas
SMB
15,000.00
175.00
250,000.00
28,000.00
Missouri
20,000.00
1,500
RKA
19,000.00
200.00
200,000.00
13,000.00
25,000.00
Kansas
500
HPB
240.00 (2)19,600.00*
5,500.00 100,000.00
10,000.00
Kansas
300
HRB
20,000.00
150.00
5,000.00 250,000.00
600
25,000.00
Iowa
EBE
20,000.00
200.00
650,000.00
32,000.00
Missouri
50,000.00
5,000
MFA
20,000.00
550,000.00
25,000.00
Missouri
25,000.00
1,800
i
HGA
20,000.00
300,000.00
12,000.00
Kansas
30,000.00
3,000
$
MMB
20,000.00
175,000.00
10,000.00
25,000.00
Oklahoma
600
Î
VPD
20,000.00
200.00
120,000.00
6,000.00
17,500.00
Kansas
300
BDB
225.00
21,000.00
600,000.00
25,000.00
30,000.00
Colorado
1,500
FLC
21,000.00
200.00
175,000.00
13,000.00
Missouri
20,000.00
400
MRA
24,000.00*
150.00
12,000.00
200,000.00
Kansas
20,000.00
200
KOB
160,000.00
33,000.00
Missouri
35,000.00 25,000.00
10,000
i
MCA
44,000.00
25,000.00
800,000.00
25,000.00
Kansas
2,000
1
HGB
70,000.00
35,000.00 500,000.00
30,000.00
Kansas
Large
Î
BKB
§Substantial commissions from well established “ side line” business also included in many of above.
^Includes desirable dwelling.
^Salary to be agreed upon.
No.

State

Size Town

BANKERS BROKERAGE COMPANY
919 Baltimore Avenue


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

(Successor to the C. C. Jones Investment Company)
ALWAYS CONFIDENTIAL— ALL WAYS
Kansas City, Missouri


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Federal Reserve Bank of St. Louis