Full text of Central Western Banker : June 1929, Volume 24, No. 6

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

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Anniversary
On September 25, 26 and 27 the Sev­
enty-Fifth Anniversary of Nebraska
as a territory will be celebrated in
Omaha with a special program to be
announced soon.
Seventy-five years have shown much
change . ;-. from sodhouses to man­
sions, from prairies to skyscrapers,
from wagons to six-wheel motor
trucks, from pony express to air mail
. . . and the newest developments of
radio, television, talking pictures,
electricity.
Three years after the territory was
created, the First National Bank of
Omaha, then known as Kountze
Brothers, c a m e i n t o existence.
Throughout these seventy-two years
we have served Nebraska and the middlewest. . . keeping progress with the
ever-changing years.
Many of our customers have been
with us for more than a half cen­
tury, some for nearly three-fourths
of a century.


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^

First National
I Bank of Omaha
FIRST TRUST CO M PAN Y
I

3

c L S l/

minute
N E W d
E R W . HEAD, president of
W AtheL TState
Bank of Chicago, was
re-elected for
president of
America. He
porter of all
and has given
to them.

the fourth time to be
the Boy Scouts of
is an enthusiastic supbetter boy movements
a great deal of his time
'

public and the Chicago Trust Company, which was announced following
the meetings of the boards of directors of both banks, Chicago is to have
another mammoth bank. The combined resources of the two banks will be
in excess of $200,000,000.
The combined bank will be the
third largest in Chicago. The National Bank of the Republic, at the Mai c
27th call had deposits of $121,602,000
and the Chicago Trust Company deposits of $32,913,000 Cash resources
and capital stock of both institutions
bring the total resources above the
$200,000,000 mark, Tlje capital, surplus and undivided profits of the combination will be $18,000,01», The National Bank of the Republic having
capital of $10,000,(»0 and $3,000,000
surplus and
undivided profits, and
the Chicago Trust Company having
capital of $3,000,000 and $1,000,000
in surplus and undivided profits.
---------LECTION OF Harold E. W ood
of St. Paul as vice president and

director of the Foreman Securities
Company of Chicago was announced
recently. With this appointment the
executive personnel of the Foreman
Securities Company is complete,

4 N A F F IL IA T IO N of the Chase

Nationa] Bank of New York, the
T H E CH ASE N A T IO N A L Bank
Q iase Securities Corporation and the
1 of New York has opened an AmerAmerican Express Company was apcan Express travel office on the main
ed recentiy yy stockholders of the
floor of its building at Pine and Nasj^nk and of
securities corporasau streets, making available the
;
who authorized an increase ¡„
world-wide travel facilities of the
institution from
American Express organization. Com61Q ^
tQ 80a000 shares and a lit.
plete arrangements for travel accom- ,
,
r
f
modations can thus be made through
UP , ° ‘
shares on a five-for-one
the Chase Bank
liaslf as a s'eP 111 carrying out the con____
sohdation of interests. Upon consumAH N 1 FOSDICK formerly vice
mation of the plan, the combined in­
president of the Northern Trust
solutions will have capital surplus
Company of Chicago, has been apand reserves exceeding $283,000,000.
pointed resident partner in charge of
_____
the Chicago office of Colvin & Company, effective immediately. Mr. FosO n e OF the most famous collecdick was associated for many years
tions of money in the world, conwith the Northern Trust
stituting^ more than 40,Companv with which he iHiMmHnNniiNtimiNimiiiMmHmmmHimmiritimiiiiiiiMtiiiHiiiiiHiiNiimmHiiimiHiiiiiiHiiiimiMMtiiniiimmmHiuniiuiiiniiNiMiiiiimHiiiiiiiiimHHMirmniHmiitmiiiHmnuiiirmiMmmi 000 specimens assembled
became associated more
ovei a penoci ot toity
than a decade ago as a
y 0j 24
No 6
June, 1920
years, has been acquired
salesman. At the time of
’
by the Chase National
joining Colvin & ComT
r~T'L *
J
Bank of New York and
panv, he had risen to ex1 TI
1 l l l S 1 S S XI C
will be installed as a perecutive vice president in
m anent ex h ib it in its
charge of the bond deW hat a Clear Title M e a n s ........................................................ 4
building at Nassau, Pine
partment.
Nebraska Group M eeting S n a p s h o t s .................................. 5
and Cedar streets. The
______ _
Essentials o f Good Bank M a n a g e m e n t ............................. 6
a cq u isitio n represents
r y.
1
The Nebraska Group M e e t i n g s ......................................7
the largest single transjy jE R G E R ot Central
W hat Should a Bank E a r n ? ...................................................9
fer of varieties of money
Union Trust ComFeeding Expensive “ Boarders”
....................................... 10
that has ever taken place.
pany and Hanover NaCartoons o f the M o n t h ............................................................11
tional Bank, New York,
Bonds and I n v e s t m e n t s .......................................................13
will result in the comInsurance
.................................................................................. 19
TT'OR TH E sixth sucbined bank being called
Nebraska N e w s ....................................................................... 22
T cessive time E _ h .
C entral Hanover Bank
News o f the Omaha Stock Y a r d s ......................................27
pp Simmons has been
an d Ti ust C o m p a n y .
South Dakota News • • • • • • • • • • •
30
elected nresident of the
This merger will not afKansas N e w s ............................................................................32
C - w Y o rk Stock Exfeet the ti aditional m
Colorado News .
.
33
change his sixth election
vestment policy of eith.=
having’ taken place re-

K

T

ROUGH the conTHsolidation
of the Na.

-

tional

^
^ |
-p
hank OT trie Tve-

p


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Federal Reserve Bank of St. Louis

he

C entral W

estern

B anker

of

O

cently. Mi . Simmons, in
^1S annua report 1eitei
ated his attitude in Opposition to ciitics of t le

maha

Published monthly at 41b Arthur Bldg.. Omaha. Nebraska
Subscription. 2.1 cents per copy: $2.00 per year
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UTRrlcCt C114P 1OV “

Central Western Banker, June, 1929

4
ment of credit to such a large extent
in brokers’ loans.
J U L IU S RU BIN ER, vice president
of the National Bank of Commerce

of Detroit, has resigned from that o f­
fice to become vice president of Ungerleider Financial Corporation, the
new $25,000,000 investing company
sponsored by Samuel Ungerleider,

William Fox, William C. Durant, and
a group of middle-western and Cana­
dian capitalists. ----------The best thing to live inside of is
your income.

W hat A Clear Title Means
In Selling Land
“ I ’V E JUST sold the Juniper farm
“ This rule has been laid down by
Vermont and Wisconsin courts have
to Peter Brooks,” Henry Ander­ the Arkansas, California, Illinois, In­
ruled that when the seller is unable or
diana, Iowa, Kentucky, Maine, Mary­ unwilling to perform his part of the
son averred.
‘‘Get a good price” lawyer Parker land, Massachusetts, Minnesota, Mis­ contract, then the buyer can force him
souri, New Hampshire, New York,
queried.
to hand him the money.”
‘‘$20,000,” was the smug reply.
North Carolina, Tennessee and Wash­
“ Well, I ’ve certainly stung myself.”
“ $20,000— is the man a raving luna­ ington courts,” Parker explained.
“ You surely have.”
tic ?”
“ That’s great,” Anderson declared,
At the same time Brooks was ex­
“ No— but he will be when he conies “ and I put another one over on Brooks plaining the same situation to Harold
to his senses.”
too. You know about that 3 acres or Ross, the attorney for the Ashland
“ Got the bargain all nailed down so down Hamilton Brook that we call­
Savings bank.
tight? Written agreement, and all
ed the ‘debatable territory’.”
“ And the worst part of it is that
that sort’a thing?”
“ The ‘devil’s half acre,’ you mean.”
part of the money I threw away I
“ Not the scratch of a quill, but I
“ Yes— well I sold that to Brooks
borrowed from your bank,” Brooks
along with the rest.”
got $8,000 cash down, and— ”
declared.
“ And you figure that if Brooks
“ But you haven’t a good title to that
And then Ross took down the same
don’t pay any more you can sell the place. The Prosser heirs have never book, and explained the law to Brooks
land to some other stranger for $12,- been bought out.”
just as Parker had “ doped it out,” to
000.”
Anderson.
“ That’s the joke of it. Old Hill
“ That’s the idea, but after I got the Prosser’s boys say they’ll burn the
“ So you see it’s that little disputed
coin I got to wondering if
piece that saves your ba­
Brooks could cancel the
con,” Ross assured him.
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trade and make me pay
“ But how could it be
back the coin. Eve under­
when Anderson’s able to
stood that a sale’a land or
give me a good title to all
“ A number of State courts have ruled that when the
any interest therein has to
but that little piece ? Can
seller Is unable or unwilling to perform his part of the con­
be in writing to be legal.
I still get my money back,
Heard Judge Chandler ex­
just the same as if his
tract, then the buyer can force him to hand him the money.”
plain it to the jury that
whole title was bad?”
way down at the Circuit
“ Pm expressing n o
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Court last fa ll, but I
opinion
on that point, for
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thought I ’d better get the
Parker’d never think of
cash and let the future
that in a month of Labor
take care of itself. Didn’t want to roof over the head of the first man days,” Ross assured him.
seem too anxious to get a signed that cuts a stick of wood on it this
agreement or Brooks might’a got sus­ winter.”
picious.”
“ Anyone hear you and Brooks make
Dies in Denver
“ Y ou’re correct in your law, and a the trade ?”
J. H. Pattison, 58 former wellverbal sale of land isn’t binding on
“ Yes— Rev. Mr. Sipprell.”
either party, unless the buyer takes
“ Well, you’re certainly one unmiti­ known Colorado Springs business
man and at one time vice-president of
possession of the land under the ver­ gated fool.”
the State Savings bank with which
bal agreement,” Parker explained.
“ What do you mean?”
“ Then I may be stung after all.”
“ Can’t you see a hole in a five year he was affiliated in an executive
Parker selected a bulky volume tire?” Parker fumed. “ When you put capacity for several years, died re­
from the book case on the western in the debatable territory you can’t cently at his home in Denver. Death
wall.
be ready and able to give a title, so came as the result of a heart attack
“ While this is true,” Parker went Brooks can sue and make you pay after an illness of only a short dura­
tion.
on, turning to a marked page, “ the back every cent of the money.”
rule is that the buyer cannot get this
“ And that’s the law?”
money back, even if there’s nothing in
Parker turned to the bulky volume
writing, where the seller’s ready, wil­
for a second persual.
A.
F. CLOUGH, president of the
ling and able to deed him the land.”
“‘ Y es, the Alabama, A rk an sas, Security State Bank of Canova, South
“ Well, that puts me on safe ground, Georgia, Illinois, Indiana, Kansas, Dakota, and Mrs. Clough, celebrated
for my title’s as good as gold, and as Maine, Maryland, M a ssa ch u setts, their fiftieth wedding anniversary re­
being willing to deed that land away, Michigan, Minnesota, Missouri, New cently. More than 150 of their old
for $20,000, oh, say, willing’s no name Hampshire, New York, North Caro­ friends and neighbors gathered to do
for it.”
lina, Ohio, Pennsylvania, Tennessee, them honor.
Central Western Banker, June, 1929

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5

At the Nebraska Group Meetin

From left to right: (1) Ralph E. Smith, Peters National Bank and Frank Boyd, vice president, Omaha National Bank, Oma­
ha; (2) Joe Ringland, U. S. National Bank, Omaha; (3) Mark Cjllor, assistant to vice president, Continental Illinois Bank and
Trust Co., Chicago, and Wm. B. Hughes, secretary of the Nebra'ka Bankers Association; (4) Guy Kiddoo, vice-president, Omaha
National Bank and Chas. Brittan, vice president, First State Bank, Alliance; (5) C. F. Brinkman, assistant vice president, U. S.
National Bank and E. Moser, secretary, U. S. Trust Company, Omaha; (6) “ Billie” Johnson, Sidney and J. F. Coad, president
Packers National Bank, Omaha; (7) A. J. Jorgenson, president, American State Bank of Sidney; (S) E. C. Cole, president,
Ranchers State Bank, Cody; (9) Homer Peterson, sales director. U. S. Check Book Co . Ömaha and Col. Phil Hall, Greenwood ;
(10) Dan Riley, president, Dawson Bank, Dazvson, and W. B. Ryons, vice-president, First National Banks Lincoln; ( 11) E. F.
Jepson, assistant cashier, First National, Omaha; P. B. Kendrick :, assistant vice-president, U. S. National Bank, Omaha; John
Frazee, Nebraska manager, American Surety Company : and F. F. Folda, Stock Yards National Bank, Omaha; (12) George A.
Gregory, cashier, Federal Reserve Bank, Omaha; and W. H. Dressier, cashier, Stock Yards National Bank, Omaha.


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Central Western Banker, June, 1929

6

The 4 Big Essentials o f GOOD
'T 'H E FO U R requisites of Bank
Management are Supervision, In­
formation, Security, Earning Power.
There were 3800 bank failures in
the United States in the past six
years, in spite of all laws, examina­
tions and restrictions. W e will con­
tinue to have failures until bankers,
through proper supervision and co­
operation, educate themselves to a
point of self-restraint and recognize
the safety of obeying the laws govern­
ing their institutions without being
compelled to do so. W e have had an
over-banked condition here in Ne­
braska, due to poor banking laws in
the past, resulting in lack of coopera­
tion, unfair competition and lack of
supervision. These have been the basic
causes of our bank troubles. Unless
we as unit banks apply the principles
of sound bank management, backed
by a strong organization, we will
have to give way to branch banking,
which dominates and eliminates, by
monopoly, all competition.
Cooperation is the big word in ush­
ering in a new era of safe banking in
Nebraska. The magnitude of counsel
is the height of safety and wisdom.
The day has passed when individual
unit bankers can say we do not need
to belong to any county, group, or
state bankers organization, or to any
county credit or clearing house bu­
reau. It is this class of bankers who
have been the high-raters, and who
have deliberately turned their banks
into charitable institutions by refus­
ing to hold interest rates in keeping
with their earning power, and who in­
sisted upon giving away bank services.
Most of them are today among the
missing. The good bankers, the con­
servative bankers, I mean, are not
wearing mourning for this class of
departed brothers. The public is more
interested in safe banks than they are
in free service and high interest rates.
Supervision
In a recent interview with Gover­
nor Weaver and Secretary Bliss of
the Department of Trade and Com­
merce, they stated that their desire
was to assist the banks in every way
possible to become better, stronger
and bigger institutions. Secretary
Bliss stated that from now on he will
bend every effort to clarify the
banking situation by better examina­
tions, consolidations, and refusing to
grant bank charters when unneces­
sary. He is anxious to have the united
cooperation of all the banks in carry­
ing out the new program. The pro­
Central Western Banker, June, 1929

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gram provides for two examiners
from now on instead of one for bank
examinations; one to be the examin­
er, the other a helper who will later
on be qualified to become a regular
examiner. He stated that there were
61 closed operated banks taken over
from the Guaranty Fund Commission
under the new act of the recent Legis­
lature; that the plan is to place these
banks in a receivership at once, the
Department of Trade and Commerce
to act as Receiver, and all business to
be handled by deputy receivers, and
all settlements and adjustments to be
approved by the court.
Hereafter should it become neces­
sary to close a state bank, the capital

C ol. P h il H

all

and surplus will be used to charge
off losses. Should this fail to meet
the demand of the Department, the
depositors will be asked to organize
and meet with the stockholders of the
bank, and if an agreement can be
reached by the depositors whereby
they are willing to discount their de­
posits to a certain extent in order to
take out slow or doubtful paper, the
Department will then authorize the
bank to continue as a going institu­
tion. This is the new law passed by the
Nebraska Legislature, copied from
the Minnesota law, all notes charged
off under such conditions to be turned
over to the depositors for collection,
any moneys collected to be prorated to
them. It is believed that by this sys­
tem, with proper bank management,
should any state bank ever fail, the

Mana :emeni
President, Nebraska Bankers
Association
(Address before Nelrasi^a Gioup Meetings)

loss to depositors will be the mini­
mum.
The Department will adhere strict­
ly to the law, in granting bank chart­
ers only where there is a public neces­
sity for a new bank. No state bank
charters have been issued by the De­
partment in the past six months.
Bankers should cultivate the habit
of observation, and should require all
employees to do likewise. Many things
happen every day or week in the rou­
tine of banking that a keen observer
can detect, and that will many times
prevent a loss later on. Every banker
should keep an alphabetical mortgage
ledger wherein all local mortgages
are recorded. This is a marvelous
source of information, always ready
for immediate use in supplying credit
data. If a new man comes into your
community, get a line on him, and if
he later desires a loan you can handle
him intelligently.
Memory is a wonderful asset, but a
complete set of property statements
on your borrowers not only gives you
an 'Opportunity to study your loans,
but is of great assistance to your ex­
aminer, and in fact it furnishes him
with the exact information he desires
in passing on your loans.
Security
The day has passed when Bill
Jones can walk into a bank and de­
mand a loan of $500 or $1000 “ right
now,” sign a note and walk out of the
bank with the money. Not only for
the information of the examiner, but
for the information of the banker,
Bill will have to make out a property
statement. If Bill’s worldly possessions
are insufficient for a loan he will
hear the banker say N-O, in capital
letters. If Bill has sufficient liquid se­
curity he will be asked to trust the
bank with it while the bank trusts him
with the money. If Bill desires to put
his home up as security, and has noth­
ing else in his name; the chances are
(C o n t in u e d

o n P a g e 2 1)

7

From left to right, tzvo war “ buddies,” George Althouse, veteran group meeting porter, a World war sergeant, and Ins colonel, Phil Hall, president of the Nebraska Bankers Association; center, Lawrence M. McCague, First Trust Company, and E F.
Jepsen, assistant cashier, First National Bank, Omaha; right, R. C. Johnson, assistant vice president, Continental State Bank, Lin­
coln and R. IT. Kroeger, assistant cashier, Livestock National Bank, Omaha.

Heard and Seen at the Nebraska
Group Meetings
T 'H E M EETIN G A T FA1RBURY
* on Monday, May 20th, furnished
one of the best meeting places of the
week’s meetings, sessions being held
in the spacious Elks Club Room. The
morning session was marked by a live­
ly exchange of repartee between the
presiding officer, Carl D. Ganz, and
Henry A. Guthmann, Cashier of the
Bank of Murdoch, who delivered the
response. Other speakers on the day’s
program included Dan Riley, Presi­
dent of the Bank of Dawson, who
spoke at each meeting on “ Bank Leg­
islation,” since Mr. Riley is chairman
of the Association Legislative Com­
mittee; President Hall; Carl Weil.
Vice President of the National Bank
of Commerce, Lincoln, whose address
on “ The Call Loan Market” is to be
found elsewhere in this issue; Charles
Smrha, President, Farmers and Mer­
chants Bank, of Milligan, who spoke
on “ Loans;” and F. B. Brady, Vice
President of the Commerce Trust
Company of Kansas City, who talk­
ed on “ Current Trends in Banking.”
E. F. Folda, of the Stock Yards Na­
tional, Omaha, conducted an interest­
ing question box.
GROLTP 4 held its sessions in the
District Court Room at Holdrege,
and in addition to the addresses of
President Hall and Mr. Riley, dele­
gates were treated to two excellent ad­
dresses. one on “ Bonds and Banking”
bv T. B. Strain, VRe President of the
Continental State Bank. Lincoln, and
“ Service Charges and Float,” by Guy
C. Kicldoo, vice-president of the Oma­


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ha National Bank. Mr. Folda conduct­
ed a Question Box, which was follow­
ed by a general discussion of the
Guaranty situation, under the super­
vision of Fred C. Gund, President of
the First National Bank, Blue Hill.
The evening banquet was ably presid­
ed over by J. R. Cain, Jr., Vice Presi­
dent of the Peters National Bank, of
Omaha.
GROUP 5 M EETIN G, held at
Lexington in the Majestic Theatre,
enjoyed on the morning session a
splendid address on “ Bank Vision” by
President R. F. Stuckey of Group 5,
addresses by President Hall and Mr.
Riley, and an address on “ Secondary
Reserve” by Byron Dunn, Vice-Presi­
dent, National Bank of Commerce,
Lincoln. The evening banquet was
held at the Lexington Country Club.
GROUP 7 met at Sidney on Thurs­
day, with registration at the Commer­
cial Hotel and the sessions held at the
U.S.A. Theatre. Features of the meet­
ing were addresses on “ Commercial
Bank Management” bv W . H. Dres­
sier, Cashier, Stock Yards National
Bank, Omaha, and “ Better Banking”
by Claude F. Anderson, Assistant to
President, State Bank of Omaha. The
evening banquet was held at the Sid­
ney Country Club and the delegates
were treated to some splendid talks by
Bert W ilcox, Vice President of the
Omaha National Bank, and the wellknown Cullen N. Wright, with his
usual collection of humor and phil­
osophy.

TH E F IN A L M EETIN G of the
week was held May 24th at Cody,
with addresses by Messrs. Anderson,
Riley, Dressier and President Hall. In
the evening a banquet was held, fol­
lowed by dancing.
W H IL E NO ONE can guess the fi­
nal outcome of the Nebraska Guaran­
ty Law situation, the Nebraska bank­
ers are generally optimistic over the
future of Nebraska banking. They are
unanimous in their statement that, as
one speaker put it, “ W e have, millions
for defense, but not one cent for defi­
cit.” It is felt by all of them that
Judge Frost’s injunction against the
collection of special assessment will
be upheld by the Supreme Court.
DAN RILEY , Chairman of the As­
sociation Legislative Committee, at
each meeting made an excellent sum­
mary of bank legislation which was
both passed and defeated at the last
session. He gave as his opinion that
the personnel of the last legislature
was fully equal to or superior to that
of any former legislature, and that
the lawmakers did their best to grant
banking relief, which was really an
impossible task.
CH ARLES SM RH A, President of
the Farmers & Merchants Bank of
Milligan, said in regard to loans, that
“ You don’t know your customer until
you see him at work on his farm. Visit
him often and check up on him, just
as the Bank Examiner visits and
checks up on you.”
Central Western Banker, June, 1929

8
T. B. STR A IN , Vice President of
the Continental State Bank of Lin­
coln, in his Holdrege address predict­
ed the time is at hand wKen banks
must study common and preferred
stocks in order to promptly advise
their customers on investments.
GUY KIDDOO, Vice President of
the Omaha National Bank, delivered
one of the finest addresses of the en­
tire week at Holdrege, speaking on
“ Service Charges.” He injected some
humor in his introduction, by request­
ing a rising vote, first by bankers who
have the service charge, and second,
by bankers who don’t have the charge
but would like to have it. He then
stated he should become an evangelist
and convert the second class of voters
into hitting the sawdust trail.
M A R K COLLOR, Assistant to
vice-president, of Chicago’s new bil
lion-dollar bank, the Continental Il­
linois Bank & Trust Company, was
the only representative of any of the
Chicago or New York banks who
made the; entire series of Group Meet­
ings. Mark is an extensive traveler,
and will make both the South Dakota
and Iowa State conventions in June.
BERT W IL C O X , Vice President
of the Omaha National Bank, at the
Sidney banquet w e n t on record
against the principles of chain bank­
ing. He says there is no comparison
between chain stores and chain banks,
since a chain store sells for cash and
there the transaction ends, while in
the case of a bank the first transaction
is only the start of numerous close re­
lationships.
R. H. KROEGER, Assistant Cash­
ier of the Live Stock National Bank
of Omaha, represented that institution
at the Group Meetings. He and other
officers of the bank, are justly proud
of the steady growth of this institu­
tion, which now has resources and li­
abilities of almost $7,000,000, with de­
posits of $5,972,000.
JN AN EN D E A V O R to render a
more complete service to their
many clients, Smith, Landeryou &
Company, w e l l - known investment
house of Omaha, have moved their
offices to larger and more convenient
quarters at 210 Farnam Building.
Low Bridge
“ Why all the bandages on Jones’
head?”
“ Rotten bridge.”
“ Break through ?”
“ No, trumped his w ife’s ace.”
Central Western Banker, June, 1929

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

Left to r;-ght: Joseph E. Otis, president; William R. Dawes, vice-president;
James G Alexander, executive vice-chairman, and C. Howard Marfield, vicepresident and chairman of the discount committee.

The physical consolidation of Cen­
tral Trust Company of Illinois and
the Bank of America, Chicago, has
been completed by removal of both
offices of Central Trust Company to
new quarters at 208 South LaSalle
Street.
For several months after the legal
merger, Central Trust Company tran­
sacted its business at both 125 West
Monroe Street and at 9 South La­
Salle Street, the banking home of the
former Bank of America. Now, for
the first time, the combined bank and
its officers and employees are under
one roof.
Now the third largest independent
bank in Chicago, Central Trust occu­
pies quarters formerly used by the
Continental National Bank and Trust
Company. On the street floor are
housed the Savings, Bond, Real
Estate Loan, Foreign and Travel De­
partments. On the main banking floor
are the Commercial Banking and
Trust Departments.
Founded by Charles G. Dawes 27
years ago, immediately after the com­
pletion of his term as Comptroller of
the Currency under President M c­
Kinley, the Central Trust Company
has enjoyed phenomenal growth. It is
one of the few banks in America ever
to reach over $120,000,000 in deposits
in the short span of 25 years. Today
Mr, Dawes is still associated with the

bank as chairman of its Board of
Directors.
Joseph E. Otis, President of the
bank, has been its chief executive
officer for the past fifteen years. It
has been under his guidance that the
business of the bank has developed
to a point requiring greatly added
space and facilities. “ Having handled
the largest volume of business per
square foot of floor space of any
downtown Chicago bank for a con­
siderable time, the growth of the bank
has been limited by its facilities” said
Mr. Otis in a recent interview. “ Now,
with one of the finest and most com­
plete banking rooms in the country,
growth will no longer be impeded and
a greater development may be ex­
pected. Chicago and the Middle West
are growing hourly and Central Trust
Company is preparing to meet the de­
mands of increasing Chicago and
Middle Western business.”
Associated with Mr. Dawes and
Mr. Otis in the active management of
the bank are M. E. Greenebaum, Vice
Chairman of the Board, Eugene V.
R. Thayer, Chairman of Executive
Committee, C. Howard Marfield, Vice
President, and Chairman Discount
Committee. William R. Dawes, James
G. Alexander, Edwin F. Mack.
We all have to be our own center
but are obliged to be our own cir­
cumference.

9

f

How Much Should a Bank Earn?
I F TH E subject is to be handled ing department of the competing bank
* from a practical standpoint it will are 100 per cent greater than those of
be necessary to direct your attention the bank imposing the service charge.
to the set-up of a specific bank, and to Naturally, the other costs of handling
point out where improvements looking the department are greater in propor­
towards more efficient service and in­ tion.
After analyzing the cost of operating
creased earnings can be made. At
the
checking department of the bank
the outset it must be said that unless
for 1928, it was discovered that the
one analyzes the cost of operating the
various departments of a bank, it is account with an average balance un­
impossible to determine what the earn­ der $200 did not pay its way, in spite
of the fact that the overhead in this
ings should be. The 1928 figures for
a certain state show that more than bank is less than the average of 2,300
half of the open banks are losing banks which have been analyzed. The
analysis further showed that the col­
money, more than 25 per cent are
lection of the 50 cent monthly service
just breaking even, and less than 25
per cent of the banks in the state are
showing earnings on their capital in­
vestment. Surely this proves that the
crying need of the small bank is “ cost
analysis” and “ scientific management.”
The bank of $25,000.00 capital to
which reference is made, has a sur­
plus fund of fifteen thousand dollars.
With such a capital structure it sup­
ports deposits of approximately $400,000, half interest bearing and half sub­
ject to check. 20 per cent of deposits
are required in the form of cash and
sight exchange, not to exceed 40 per
cent are placed in local loans and the
remainder in bonds, commercial pa­
per and demand collateral loans. Such
a set-up earns from 40 to 50 per cent
on the capital stock. A bank with
small deposits and a large part of its
investments placed in liquid and there­
fore yield securities, must depend on
other sources of income for a part of
its earnings. It is therefore obvious
that the bank under discussion makes
its checking, exchange and commis­
W . C. R e m p f e r
sion departments yield a profit.
Over a year ago this bank adopted
charge still left a loss of $1.00 per
the policy of imposing a service charge
year on the account, and the accounts
of 50 cents monthly on checking ac­ with balances between $50 and $200
counts which fell below $50 at any upon which no service charge was im­
time during the month. While the re­ posed, caused the bank to lose an aver­
sults are very gratifying there is still
age of $3.00 during the year. A cer­
room for improvement. At the end of
tain checking account which had a
the year the number of checking ac­ daily average balance of $12,000 and
counts had decreased 35 per cent,
upon which a $300 service charge per
while the total deposits had increased year was imposed, did not make any
7 per cent. The competing bank in money for the bank because of its ac­
the same town does not impose a ser­ tivity.
vice charge and has three times as
When a customer of this bank de­
many checking accounts, but its total posits a check or draft drawn on Chi­
deposits subject to check are approxi­ cago or any other point, an exchange
mately the same as the other bank. charge of 10 cents per hundred dol­
Another interesting point in this com­ lars or fraction thereof is collected
parison is that the number of em­ from the customer, on the theory that
ployes and the payroll in the check­ the original function of a bank is the


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

By W* C. Rempfer
Cashier First National Bank
Parkston, South Dakota

transmission of money from one point
to another at a certain rate of ex­
change. These exchange charges and
the exchange received on drafts pur­
chased bring a yearly revenue to the
bank aggregating 10 to 14 per cent on
its capital stock.
Another source of revenue is the
commission charged on bond sales,
real estate loans and installment auto­
mobile paper purchased from local
dealers. Only choice three to six
months automobile paper bearing the
regular over the counter rate is pur­
chased with the absolute guaranty of
the local dealers, but at an additional
2 per cent discount, which is charged
as a collection fee and is less than that
charged by acceptance corporations.
The revenue from these commissions
over a period of years has yielded 8
to 10 per cent annually on the capital
stock, and the bank has not suffered
a single loss from this class of paper.
Interest paid on time deposits is at
the rate of 3 per cent for 6 months
and 4 per cent for a year. The spread
between this rate and the over the
counter rate is 4 to 5 per cent. The
cost of handling the loaning end of
the bank including losses is \]/2 per
cent of the total loans and bonds held
by the bank so that most of the in­
come of the bank comes from this
sources. Losses during the past 20
years have averaged 3 per cent an­
nually on the capital stock and the
bank has never missed a dividend.
The low loss ratio is partly due to the
fact that the average local loan is less
than $600 and as a general rule the
bonds and securities department does
not purchase more than $2,000 in
bonds of any one issue.
In order that the bank may earn a
fair return on its capital stock it is
essential that it make a profit in every
department and on every account. If
a department or a checking account is
not paying its way it should be dis­
continued or put on a paying basis.
The co-operation of a competitor is
not necessary in imposing service
charges, although it is helpful. An
analysis will show whether there are
too many high priced executives, too
much money invested in the bank
building or other real estate, too much
Central Western Banker, June, 1929

10
money spent for advertising or in e f­
fecting real estate, too much money
spent for advertising or in effecting
collections, too many free services
rendered, or too much waste permit­
ted. By adopting the policy of re­
stricting the amounts invested in local
loans, diversification is achieved, the
choicest loans are obtained, and losses
are reduced to a minimum.
When one reflects upon the fact
that the United States suffered a mor­
tality of over 10 per cent, and some of
our northwestern states over 50 per
cent among their banks since the war,
it is easy to see why the public in some

sections of the country thinks that any
change will be one for the better and
are eagerly welcoming anything which
promises relief. The excessive mor­
tality among small banks during the
post-war period while resulting large­
ly from competitive causes, proves not
only that the small banks of the coun­
try possess less capable management
than the big banks, but also that, due
to lower earnings, they could not af­
ford to hire expert managers as indi­
viduals units. This problem can be
solved in the future only in one of
two ways. Either large groups of di­
rectors or small banks must co-ope­
rate in hiring expert auditors with

powers superior to those of the active
officers of the banks or some form of
chain or branch banking will be de­
veloped which will furnish these audi­
tors.
When one considers the trend of
the times towards the formation of
big mergers and notes the organization
of larger and larger corporations with
numerous branches, it seems possible
that eventually there will be a few
groups or chains of banks in the U ni­
ted States, which, with scientific man
agement and efficient stabilization, will
put an end to bank failures and at the
same time supplant our present system
of unit banking.

Feeding the "Expensive” Boarders
U \LD COW S may rightfully be
termed “ expensive boarders” and
to be handled successfully on cornbelt
farms must be fed as large a quantity
of low grade, cheap roughage as pos­
sible, giving them only a quick spring
finish on grain. These were the out­
standing deductions from a cow feed­
ing and wintering experience which
has been conducted the past season by
the animal husbandry department of
the Nebraska College of Agriculture.
The fact that the subject of winter­
ing cows is of growing importance in
the cornbelt was what led the college
investigators into this work. Feeding
operations are working more and
more onto a calf basis each year with
range supplies of calves limited in
number, more cornbelt operators are
turning back to breeding operations
on their own account. Yet cornbelt
farms have or can maintain herds of
breeding cows the year ’round and to
supply the breeding stock, farmers
have the option of going to market in
the fall and pick up bred cows in
much the same way that they do the
“ one-year” breeding ewes which have
become a well known trade commodi­

tyIt stands to reason that most of the
well bred western cows which come
to market have been discarded be­
cause they have outlived their usefulnes on the open range. However, with
the more concentrated feed of the
cornbelt they may easily be good for
one or more years of added produc­
tivity. One year is probablv all that
the average farmer would care to
keep them, for with a limited amount
of pasture and roughage the logical
thing to do would be to fatten and sell
them as soon as possible after the
calves are weaned.
The experiment at Lincoln fell into
two distinct periods or phases. In the
Central Western Banker, June, 1929

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

first of these three lots full of aged
range cows, 10 head in each lot, were
fed a group of fattening rations for 66
days starting November 28, 1928.
laterally they ate their heads off.
Shelled corn and alfalfa, ground ear
corn and alfalfa and ground shelled
corn and alfalfa were the three ra­
tions used, and while there was a defi­
nite indication that the ground feed
was the more desirable feeding ration
for the aged cows in the trial, feed
consumption and costs ran so high in
all lots that the original question of
what profit might be shown was soon
turned into one of how the loss on the
operation might be minimized. Ob­
viously full-feeding old range cows
for the winter market was not to be
considered.
To cut down the already enormous
feeding cost, the 3 lots were thrown
back into one group and fed a coarser
ration made up of a liberal quantity
of ensilage, a few pounds of ground
ear corn, cotton seed cake and alfalfa
hay. Gain costs remained out of all
proportion to market values in fact,
but they were reduced somewhat, and
the ration was more in conformity
with the newly adopted plan of letting
the cows, most of which were bred,
drop their calves and carrying the
test out on a calf raising basis.
Most of the cows have dropped their
calves and remain under observation
at the experiment station and the few
which had no calves have been
marketed. A sharply rising market
made this last phase of the test profit­
able, but so far as gain costs were
concerned the cows proved to be ex­
pensive eaters from start to finish, as
819.66 worth of feed was required to
100 pounds of gain even during the
second period.
Grain Should Be Ground

Summing up the results of the ex­

periment, Prof. Gramlich observed
that the cows used were 10 to 12
years old and in all probability better
results would have been obtained with
slightly younger cows.
“ Cows are expensive boarders,” was
his conclusion. “ They have enormous
capacities for food and cannot com­
pete with young cattle in producing
economical gains when they are fed on
standard beef cattle fattening rations.
Where grain is fed to old cows it
should be ground, and they make good
use of silage.
“ But there are several limitations
upon the practice of cornbelt farmers
buying old range cows for calf raising
purposes. These are:
1. Uncertainty of date of calving.
Calves are apt to come over a rather
long period of time as ours did at the
college.
2. Relatively long period before
cows and calves are ready for market.
3. Inefficient use of common corn
belt feeds by cows.
4. Possibility of abortion and other
diseases and the uncertainty as to
whether or not the cows are in calf.
Finish for Spring
“ As was the case this year, the mid­
winter market on cows is usually rath­
er low, so the probable best method of
handling old range cows on corn belt
farms is to feed largely on low grade
roughage during the winter and giving
them just a short finish on grain for
an early spring market. Or if they
are held until after calving, the cows
can be fattened with the calves and
the latter marketed with their mothers
as veals weighing 150 to 300 pounds.”

Bv time and toil we sever
What strength and rage could never,
—La Fontaine.


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Federal Reserve Bank of St. Louis

11

CARTOONS OF THE MONTH

Central Western Banker, June, 1929

12

nnounce
is made of the formation of

LLOYD PHILLIPS & CO., Inc.
as successors to

PH ILLIPS & C O M P A N Y
With the following Officers and Directors in charge:
President
L o u is E. M a y ________
Vice-President
L ambert G. F a l t y s _________ Secretary-Treasurer
Stanley H . I ngalls A s s t Secretary-Treasurer
E lmer C. D unkelberg ____________ Field Manager
L loyd W . P h il l ip s ______________

C edric H . S m i t h ,
President Smith Burris & Co., 120 So. LaSalle, Chicago

P erc y H . W

h itin g ,

President P. H. W hiting & Co., Inc., 72 W all Street, New York

J esse V . C r a i g ,
President National Association of Securities Commissioners, Lincoln, Nebr.

W

ade

R. M

artin ,

President Commercial Banking Co., Stratton, Nebr.

R ay W . H am m o nd,
Vice-President and General Manager Hammond Printing Co., Fremont, Nebr.

J a m e s R. H a n s o n ,
Vice-President and Manager The Hanson Audit Company, Fremont, Nebr

J o h n So n i n ,
Merchant, Fremont, Nebr.

E a r l R. H AM MON D,
Vice-President Crystal Refrigerator Company, Fremont, Nebr.

J ulius T . H a irh o u se ,
Retired, Fremont, Nebr.

This C orporation, as successors to Phillips &
Com pany, will continue to conduct a general Invest­
ment Securities business, dealing in listed and un­
listed Stocks, Bonds, and Investm ent Trusts.
Special advisory services are maintained fo r the
benefit o f investment counsel to Banks, Institutions
and Individuals.
A cordial invitation is extended to visit our offices.

LLOYD PHILLIPS & CO., Inc.
investment Securities
201-205 U nion National Bank B uilding
Telephone 348

Central Western Banker, June, 1929

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Federal Reserve Bank of St. Louis

Frem ont, Nebr.

13

call, $100,000.00, and
'X 'H E STO CK maron the day that he
*• ket,during the past
was writing, they had
year, has been the
increased this amount
center of interest of a
to $150,000.00— ad­
large portion of the
vising further: ‘ ‘ We
people whom the writ­
are simply using this
er, and I presume, the
money in this manner waiting until
members of this group come in fre­
the bond market is in such shape that
quent contact with, and in connection
our investment committee feels a per­
with the stock market— the advance in
manent investment should be made. If
prices of stocks listed thereon and the
at any time the stock market should
interest rates charged on funds with
have what appears to be a permanent
which to carry a large portion of the
“ turn” downward, we will undoubted­
Vice president, National Bank of
stocks traded in, that are not actually
ly put this money, in more or less, per­
Commerce,
Lincoln
paid for, and which is known as the
manent investments, as that will be to
(From address before Fairbury, Nebraska,
“ call money market,” and the interest
us an indication that bond prices have
Group Meeting)
rate thereon, might be, I thought, of
reached their low point.”
interest.
In other words, the high interest
A Similar Situation
000,000.00 for the account of banks
rate on call loans is attracting to the
To the writer it seems that the outside of New York, and about $2,stock market funds that should be in­
stock market is in exactly the position 600,000,000.00 for the account of oth­ vested in bonds and farm mortgages.
of the land market in Nebraska a few ers than banks.
Liberty bonds yielding 4jd per cent at
There has been appearing in the
years ago. At that time land was only
one time had advanced to such a price
producing an income of a very small paper quite a number of articles about that they were yielding about 3jd per
percent on its actual or sale value; the the efforts of the Federal Reserve cent, or maybe a trifle less. Today
owner figuring his profit in the ad­ bank to restrict these brokers loans on Liberty loan bonds are selling right
vancing price of lands. Identically the the theory that the high rates being around 99 par, or yielding a trifle in
same condition is existing today in the offered for such loans is diverting excess of 4 j j per cent.
stock market. A man purchasing money out of ordinary commercial
Call Loan Rates
stocks, whether he pays
The
call money market
................ ................................. ........................... ......................"""""""
for them in full or car­
................. .............. ■imiiiiii................ ...................... ............ ......... """""""""
rate
flunctuates
from day
ries part of the purchase
to day. These slips cover
price through his broker
It is possible that the speculative spirit that has existed
funds loaned on the New
paying the call rate, is re­
(luring: 1928 will continue well into the fall of 1929 but, 1
York market.
ceiving only a small per­
believe, that next year at this time will see a very material
In Chicago the call rates
cent of his investment—
change in the market price of stock and a corresponding de­
are handled just a bit dif­
depending upon the ad­
cline in the funds required for their handling,
ferent. For instance: They
vance in the price of the
have
placed their call rate
IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIHIIIIIIIIIIIIIIIIIIIIIHIIIIimillllUHIIIIIllllllllllllllllllllllllllllilllllllilllilll,l,ll,,,l,,,,l,lll'l, 'l"lllll" " |l " l" l,l" " " l |" '" l ',, ," l | " " " " " 1111111
stocks for his profit, and
at 7 per cent and it has
11111111111111111111111111111111111111111111111111111111111111111111nm 111111111111"»1111•1111111*11111*1111*i11' i *'1*'‘ i" " 111*" *11" " 1111" i" " 1 1 '1 1 1 1 " 1" 1" 111
1
1
11" 1'1'1" i1111" 11'i
every comparison shows,
remained at that rate for
since a complete record
quite
a
few
months
time. The average
channels.
There
is
no
question
about
has been kept beginning with 1926, on
what are known as brokers loans, a that being true, but the fault does not will be about the same.
Then in addition to the call rate on
comparison of stock prices between lie with the banks because New York
city banks have loaned today less loans secured by stock exchange col­
that day and the present time would
lateral are the loans known as collat­
not indicate that any more money was than they had in 1926; the out-oftown banks but slightly in excess of eral loans and which run for a period
required to carry the same number of
of four or six months. I have with me
shares of stock had the price of such the amount loaned at that time; while
funds loaned for the account of oth­ a circular from one of the brokerage
stocks not materially advanced. For
houses quoting loans secured by stock
instance, in January, 1926 there was ers than banks is almost five times
exchange collateral at 6 jj per cent
the
amount
that
was
loaned
in
1926.
loan-ed about $3,100,000,000.00 on
discount. The borrower must pay the
“ Account of Others”
brokers loans. This was divided, about
broker a quarter of one per cent for
The
Phillips
Petroleum
company,
$1,200,000.00 for the account of New
York banks; practically the same whose statement I have, you will no­ placing these loans which would make
amount for out-of-town banks, and tice show call loans to the amount of the funds cost him not less than 6 j j
per cent.
about $600,000,000.00 for the account $7,400,000.00.
With these thoughts before us, the
The
president
of
a
small
life
insur­
of others than banks. The same week
question that naturally arises, I pre­
ance
company
in
New
jersey,
under
in 1929 showed $5,500,000,000.00;
about $1,000,000,000.00 for the ac­ date of March 11 writes that on De­ sume, is what can be the ultimate out­
come of the situation; why the concount of New York banks; $1,800,- cember 31 his company had loaned on
Central Western Banker, June, 1929

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

CALL LOAN:
BONDS?

14
cern of the Federal Reserve bank; is
it justified and do banks, members of
the Federal Reserve system, feel the
same concern? 1 believe the banks are
more concerned than is the Federal
Reserve system. With Practically $3,000,000,000.00 of loans outstanding in
the hands of others, it would mean
that if for any reason these people
should decide that the time is oppor­
tune for the reinvestment of their
funds in bonds or securities of a more
permanent nature, and they were to
call in the funds which they have out
on the stock exchange, that the bur­
den of refinancing them would fall on
the banks in the reserve centers; that
if the Federal Reserve system should
maintain their position that banks hav­
ing money loaned on the market at
call were not in a position to ask the
Federal Reserve bank for rediscount
privileges, it would mean that the
price of stocks listed on the New York
Stock Exchange would have to be ma­
terially reduced so that the same
amount, or less, that is being used at
the present moment would finance the
same number of shares. In other
words, stock of the Radio Company of
America, which has never paid a divi­
dend and which at one time sold in
excess of $400.00' a share, might have
to be reduced to $100.00 or $150.00 a
share, and other stocks in proportion.
As a matter of fact, personally, I be­
lieve that the holders of stocks which
are netting them an average return of
say 3 per cent will of their own accord
in time start disposing of these stocks,
reinvesting the funds in bonds rather
than stocks; that the speculative de­
mand for stocks will decline and pos­
sibly quite rapidly, and not near the

amount of money will be required for
their handling. While it is possible
that heavy demand made by outside
interests for their funds loaned at call
on the stock exchange may cause a
serious condition to occur which,
without doubt, would be almost a pan­
ic, at the same time, in the judgment
of the writer, I do not believe that
while such condition is possible that
it is likely to be probable because, I
believe, the liquidation is going to be
reasonably easy and gradual.
Credit Dangers
The danger in the present credit sit­
uation does not lie in the amount of
call loans outstanding but rather in
the manner in which this money can
be withdrawn from the market,
Charles S. McCain, president of the
National Park Bank of New York,
said in an address before the Arkan­
sas Bankers’ Association at Little
Rock. Mr. McCain expressed his
doubt that brokers’ loans were high in
comparison with the business done
ten years ago.
Asserting that funds for the call
loan market should unquestionably be
supplied by banks rather than indivuals and corporations, Mr. McCain
pointed out that the situation today
was just the reverse, with only $2,500,000,000 of outstanding brokers’
loans provided by the bankers of the
country and $3,500,000,000 provided
by others. Just as surely as a demand
comes in any business to use its funds,
where they are lending on call, he
said, they will be withdrawn by that
concern, or if a lack of confidence
should develop in the security of such
loans, private individuals and cor­

porations would withdraw and put
their money in the banks or in some
other form of short time investments.
In ordinary times banks could regu­
late this, but today others control the
situation and no one can control them.
“ It is an unusual situation,” Mr.
McCain said, “ when a broker finds
himself lending a customer at 5G per
cent, and some two weeks later if that
customer receives an amount of
money which enables him to pay off
his note and leave a surplus, the bank­
er is requested to lend that for him at
20 per cent.
Heads Bond Department
George F. Spaulding, second vicepresident of The Northern Trust
Company, Chicago has been placed in
charge of the Bond Department of
that Company to succeed Kahn I.
Fosdick, vice-president, resigned.
Mr. Spaulding was born in Dubuquo, Iowa. As a Rhodes Scholar to

.. .......................................................................... mini.......................... mini....... nimm ....... . ......................... ................... immimimm .......... ..

" ........................................................." " ......." " " " " ...................... ............................................I...................................................mm......................... ...................................................................................... .......................................................................

jV /f ONTH after month we please more
banks and bankers, and through
them serve their friends and clients.

R ufus E. L ee & C o m p a n y
Investment Bankers

I

204-210 City National Bank Building

I

.................. ........... ............. .mm,,..............
Central Western Banker, June, 1929

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Federal Reserve Bank of St. Louis

|

Omaha
mm........ ... ,

unmiiiiiiii......lM
lllm
J

G eorge F. S p a u l d i n g
Orford he received his B. A. and M.
A. degrees. In 1914-15 he was a
member of the American Commission
for Relief in Belgium and later be­
came a member of the American Am ­
bulance Corps in France before
America’s entry into the W orld War.
In 1916-17 he was a Master of
Rugby School. During 1917-19 he
served as Pilot and Pilot Instructor,
Royal Air Force, spending one and a
quarter years of that time in Egypt.
Mr. Spaulding has been with the
bond department of The Northern
Trust Company, upwards of seven
years. His first assignment was that
of salesman, following which he
specialized in inheritance tax pro­
blems affecting investments, later
serving as sales manager and then
manager of the bond department, be­
ing elected vice-president in January,
1929.

15

Reorganize W ith Larger Resources
o r g a n i z a t i o n of Lloyd Phillips
and Company, Inc., to succeed
Phillips and Company, which has
dealt in investment securities, in
Fremont, Nebraska, in the past 16
months, was announced recently by
its president, Lloyd W . Phillips. The
new corporation has already begun
operation with much larger resources
than were possible in the old com­
pany.
The new company will have an
authorized capital of $100,000. Seven

rT , HE

mont; James R. Hanson, vice presi­
dent and manager of The Hanson
Audit company, Fremont; Julius T.
Hairhouse, retired, Fremont; Earl R.
Hammond, vice president of Crystal
Refrigerator company, Fremont; and
John Sonin, Fremont merchant.
The affairs of the company will be
in charge of an executive committee
selected from the board of directors,
of which Mr. Phillips is chairman.
The additional capital which is avail­
able as the result of the incorporation
will be utilized to create an invest­
ment fund for the benefit of the

stockholders of the company.
At the present time the corporation
has under contract three different in­
vestment houses in Chicago and New
Yoi'k whereby it can distribute var­
ious classes of investment securities
to established investment dealers,
banks and trust companies in Iowa,
Missouri, Nebraska, C o l o r a d o ,
Wyoming and South Dakota. With
the present organization, L l o y d
Phillips and Company, Inc., is as well
equipped to handle this business as
many of the larger investment offices
in the larger cities.

L loyd P h il l ip s

percent cumulative participating pre­
ferred stock and five thousand shares
of common stock. Its purpose is the
wholesale and retail distribution and
underwriting of investment securities.
Officers of the corporation are
Lloyd W . Phillips, president; Louis
E. May, vice president; Lambert G.
Faltys, secretary and treasurer; Stan­
ley H. Ingalls, assistant secretary
and treasurer; and Elmer C. Dunkelberg, field manager.
These officers and the following
stockholders will constitute the board
of directors: Cedric H. Smith, presi­
dent of Smith, Burris and Company,
120 South LaSalle street, Chicago;
Percy H. Whiting, president of P. H.
Whiting and Company, 72 Wall
street, New York City, Wade R.
Martin, president of the Commercial
Banking company, Stratton, Neb;
Jesse V. Craig, president of the Na­
tional Association of Securities Com­
missioners, Lincoln; Ray W . Ham­
mond, vice president and manager of
Hammond Printing company, Fre­


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Federal Reserve Bank of St. Louis

Central Western Banker, June, 1929

16
Elected Cashier
T. J. Tucker recently purchased an
interest in the State Bank of Nicker­
son, lvas., and has become cashier of
the institution. With this change, H.
E. Fleming becomes assistant cashier.
Mr. Tucker has had considerable
banking experience having been cash­
ier of the Chautauqua State Bank and
the Sedan State Bank.
For Wheat Belt Bankers
The Combine has proved a boon to
the wheat belt banker, in the view of
many who have had considerable ex­
perience with this new power develop­
ment in wheat farming.
A great saving is possible by the
use of the Combine. The Gleaner

SHORT

TERM

Combine Harvester Corporation of
Independence, Mo., one of the larger
manufacturers of Combines has as­
sembled statistics which give a real
glimpse into the possibilities of this
machine.
From actual figures supplied by
hundreds of farmers, the company has
determined the average cost of har­
vesting and threshing a bushel of
wheat with Gleaner Baldwin Com­
bines in 1928, was 2.4 cents, not
counting depreciation, taxes or inter­
est charges. In a single county in Ne­
braska — Keith County, the average
acre cost was 37 cents. Much of the
wheat made from 15 to 25 bushels to
the acre.
To the banker, such a saving means
more rapid liquidation of farm loans.

INVESTMENTS

FOR

BANKS

Whale Bones
"Y ou boy over in the corner \” Thus
the brutal examiner to the nervous
looking pupil in the class. The boy
over in the corner shot up like a
bolt.
"Answer this,” continued the ex­
aminer. "D o we eat the flesh of the
whale ?”
"Y-y-yes, sir,” faltered the scholar.
"And what do you do with bones?”
"P-please, sir,” responded the ner­
vous one, with chattering teeth, “ we
l-leave them on the s-side of our
plates.”
With Continental Company
W. A. Gray, who for 12 years was
assistant cashier of the City National
Bank of Lincoln, Nebraska, and later
was for four years treasurer of the
First Trust Company of Lincoln, has
been elected secretary and treasurer

rrp

.1 HE OBLIGATIONS o f

G M A C possess a degree of invest­
ment strength nationally recognized
by a clientele of over seven thousand
banks.

G M A C paper is obtain­

able in convenient maturities and
denominations at current
discount rates.
W. A. G r a y
Our offering list will be mailed regularly upon request

G eneral M otors
A cceptance C orporation
O F F I C E S

IN

P R I N C I P A L

C I T I E S

Executive Office - Broadway at 57 t h Street - N.ew T or\ City

c a p i t a l

,

s u r p l u s

OVER

a n d

u n d i v i d e d

p r o f i t s

#65,000,000

■«■■■■■■■■■■■•■■■■■■■■■■! « i ■■■■■■■!■■u m u m m m u n ■■F« m m » m il
Central Western Banker. June. 1929

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

of the Continental Company, an in­
vestment company which is affiliated
with the Continental National Bank of
which Edwin N. Van Horne is presi­
dent. The Continental Company will
do a general investment business.
Through his new connection, Mr.
Gray will become associated with T.
B. Strain, who was formerly vice
president of the First Trust Company
of Lincoln and is now executive vice
president of the Continental National
Bank and the Continental Company.
Both of these gentlemen have an
extensive acquaintanceship through­
out Nebraska and the surrounding
territory and under their direction the
Continental Company will undoubted­
ly enjoy an increasing business.

17

A Real Problem
A vault door so heavy that it could
not be hauled across any of the budget
spanning the Chicago liver recently
confronted the Foreman National
Bank with a unique problem.
The door, which weighed 60 tons,
was constructed at Hamilton, Ohio,
for the new 40-story Foreman Na­
tional Bank building at LaSalle and
Washington streets in Chicago. It
was shipped into Chicago to the rail­
road switch yard nearest the new
building. This point was on Chicago’s
west side and required that the door
be trucked over one o f the city’s
bridges in order to bring it into the
loop. When a trucking permit was
sought, Commissioner
of Public
Works Richard W . W olfe refused to
approve the permit on the ground that
no bridge in the city was strong enough
to sustain the tremendous weight of
the vault portal.
It was necessary to ship the tre­
mendous mass of steel out of the city
and bring it in again on a railroad
which ran into a switchyard on the
south side of the city. From this
point it was hauled to the building—
but not over a bridge.
A few days later the 40-ton guard­
ian of the vaults in the basement of
the Foreman skyscraper was followed
by a 60-ton door. Needless to say no
effort was made to obtain a permit to
bring this door over one of the river
spans.
Two Old Banks
The opening of the First National
Bank and Trust company’s new home
in Yankton, marks an epoch in the
life of two long-established banks in
South Dakota. On September 7 of last
year there was announced the merger
of the First National bank and the
First Loan and Trust company.
The First National is the oldest
banking institution in the two Dako­
tas. It was founded in 1871 and char­
tered under the laws of Dakota terri­
tory in 1871. Its first president was
Moses K. Armstrong who was follow­
ed by J. C. McVay. Other presidents
have been W . H. McVay, F. L. Van
Tassel and W . E. Heaton.
In 1909 the First National and
Yankton bank were united. The Yank­
ton National was also an old banking
firm in the city. At this time W . E.
Heaton organized the First Loan and
Trust company, which continued in
business until the merger was an­
nounced last fall. E. R. Heaton and C.
W . Boteler took over the interests of
the First Loan and Trust and are
president and vice president respec­
tively of the new institution.


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Federal Reserve Bank of St. Louis

SINCE DECEM BER 31ST, 1928,
the Live Stock National Bank of
South Omaha has increased its sur­
plus account from $75,000 to $100,
000. Much credit is due the officials
of the institution whose careful man­
agement made this increase possible.
T H E F IR S T T R U S T COM ­
P A N Y of Lincoln, Nebraska, an­
nounces the appointment of Bennett
S. Martin as manager of their bond
department. Payson D. Marshall,
formerly chief of the bureau of bank­
ing for Nebraska, recently became
associated with the same department.

I

LEE BASYE, former assistant
attorney general of Nebraska, more
recently practising law at Lincoln, has
been appointed legal aide to Ashton
C. Shallenberger, in the investigation
of the state banking department and
guaranty fund commission. His salary
will be $325 a month.

Hove to Grow Old
“ To what do you attribute your
great age?’’
“ Well, for the first seventy years of
my life they wasn’t no automobiles,
an’ fer the last twenty-five I ’ve been
confined to the house.”

N AN endeavor to render a
more complete service we

are pleased to announce the
removal of our olfices to larger
and more convenient quarters
AT

2 1 0 Farnam Building,
1613 Farnam Street,
OM AHA

SMITH, LANDERYOU & CO.
Central Western Banker, June, 1929

18
Greater Future for Banking
Changes taking place in America’s
banking system indicate that in the
next five years its achievement will
far surpass anything accomplished by
it in the past as a constructive factor
in the nation’s progress, Craig B.
Hazlewood, President American Bank
ers Association, Vice President First
National Bank of Chicago, told the
annual convention of the Ohio Bank­
ers Association recently.
"In these days of swift interchange
of ideas and methods, business and
banking progress has become visable
and tangible,“ Mr. Hazlewood said in
part. "There was a time when busi­
ness seemed without leadership and
without direction. Progress consisted
in a mere groping towards the light.

Today, the reverse is true. A better
method is discovered, the news is
broadcast, the) idea is promptly accept­
ed, and the various industries and
units of business march forward with
greater assurance and increased rap­
idity.
"As the student of business looks
out over the industries whose inter­
related activities make up the fabric
of American business, he cannot help
but see that certain businesses have
gone far along the road of progress
and organization ; in, other businesses,
he will find that the new management
idea has just taken hold; and in still
others, he must of necessity conclude
that there is a great deal of groping
and a genuine need for new thinking.
He sees agriculture struggling to

apply the principles which industry
has so successfully utilized. All lines
are facing in the same direction, hut
some are much farther advanced to­
wards a solution of their immediate
problems than others.”
Serving Nebraska Bankers
In charge of country bank business,
Laurence McCague, who is associated
with the First Trust Company of
Omaha, is well known to the bankers
of his home state.
Mr. McCague has been connected
with the bond and investment busi­

...when you want
to divers ify
your bond account
ly a u r e n c e M c C a g u e

The more carefully your investments are
balanced, one type against another, the
greater your security and the surer your
income. The bonds offered you by The
National City Company are widely diversified
— Governments, Municipals, Railroads,
Public Utilities, Industrials, Foreigns. In our
current list you are almost sure to find issues
which will round out your account. A National
City man at our nearest office is familiar with
the investment requirements o f banks and
will help you make selections.

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

BONDS

'

SH ORT

TERM

Central Western Banker, June, 1929


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

NOTES

-

ACCEPTANCES

ness for a number of years. He got
his start with Burns Brinker back in
1920, remaining with them for five
years, and was active in both the
Omaha and Lincoln office.
Later he was associated with his
father in the McCague Investment
Company handling real estate and in­
surance.
Mr. McCague saw active service in
France during the World War with
both the French and American armies.
Announce Promotions
Announcement of the promotion of
Russell F. Thornes to assistant vice
president and O. M. McCullough to
assistant secretary was made by the
Central Union Trust Company of
New York.
Mr. Thomas has been associated
with the Central Union since 1916. At
the time of his election he was assis­
tant treasurer. He is President of the
New York City Bank Comptroller
and Auditors’ Conference and a com­
mittee member of the National Audi­
tors’ Association.

19

W hy Hail Insurance Is Income
“ Hail insurance needs cooperation among managers.

In

this group should be included general agents and adjusters.
Hail insurance men should get together and by earnest and
concentrated endeavor work out the many complicated prob­
lems which today cause the public to regard hail insurance
with more or less apathy and distrust.”

I N M A N Y respects hail insurance
on growing crops is very similar to
any other kind of insurance, but it has
its peculiarities. It will be my object
to point out some of those peculiari­
ties rather than to dwell on its general
character as insurance protection.
Hail insurance is that kind of pro­
tection which indemnifies a farmer
for loss sustained to his growing crops
caused by hailstorm. It is a protec­
tion on his income and working capi­
tal rather than on his savings.
Hail losses are the result of upheav­
als of nature in the air caused directly
from hot, moist air mixing suddenly
with a very cold current of air, and
usually come after an unseasonably
hot sultry day.
False Claims Often Made
Being the result of natural causes,
a loss by hailstorm is considered gen­
erally free from moral hazard. H ow ­
ever, many excessive, unjust and un­
warranted claims are made and the
companies have small chance to evade
them if they are persisted in.
The falseness of some of these
claims, while readily detected by the
adjuster, is sometimes very difficult
to combat or prove. It is therefore
quite generally understood by officers
of hail associations and companies
that there is a pronounced moral haz­
ard in this line of protection.
The line to be drawn between stock
and mutual companies is very largely
the same line that can be drawn in
other classes, but between the mutual
underwriters themselves there appears
to be less regard for the rights of each
other and a lower standard of ethics.
I am not convinced that the men
who are handling this class of risks
are not as honorable and high minded
as those in any other line, and I think
most of them are honestly endeavor­
ing to correct the ethics of hail insur­
ance writers. But the problem seems
much more difficult to handle. Per­
haps this is due to the fact that in
many instances transient or drifting
agents are used. The business is a
very short season business. Many new
agents must be taken on each season
for only a few weeks, and untrained


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

By W . A . Rutledge
Secretary, Farmers Mutual Hail
Association, Des Moines, IoWa

and inexperienced agents do not im­
Advocates of this plan contend that
bibe the spirit of loyalty nor the ideal­ it is more just because under it the
ism necessary to high ethical conduct.
insured get just what he pays for. The
In time this may be cured, but it is one whose crop is insured for what
going to take a supreme effort on the amounts to 40 cents a bushel gets 40
part of the managers of the compan­ cents, while the ones whose crop is
ies and frankness and confidence in insured for $1 get $1 per bushel.
the good intentions of each other. Like the policyholder insured under
The companies which have a large the bushel plan, the latter man pays
windstorm business and more perman­ two and one-half as much as the
ent and fixed agents have a better op­ former, but in this instance he also
portunity to control the agents’ ac­ gets two and one-half times as much
tions than those companies which run
for his loss. Those advocating this
largely to hailstorm risk.
plan claim it to be much less compli­
There are two general plans of writ­ cated and that it can be more fairly
ing crop insurance, and many differ­ and easily administered.
ent methods of operating these plans.
An Association Function
The plans may be identified as the
Perhaps one of the most important
bushel, or market value, plan and the
functions of a hail association is the
percentage, or agreed value, plan. In
adjustment of losses. And because
the bushel plan the crop is generally
the loss is on a crop not yet made and
insured as so many acres at so much
because losses occur at all stages of
per acre with a provision in the con­
growth, it is much more difficult to
tract that unless the insured carries a get at the actual loss.
Dishonest
minimum, generally fixed at $20 or
claimants can make such outrageous
$25 per acre, on corn and wheat and
demands and cover those demands
from $10 to $15 per acre on oats, the
with such a cloak of seeming frank­
loss will be pro-rated. This clause acts
ness that it seems impossible to get at
somewhat like a co-insurance clause.
the real claim. It is therefore of as
The accepted method adopted by
much importance to be able to adjust
most of the companies using the
the man as it is to adjust the loss.
bushel plan of settlement is to deter­
The adjuster must be well up on
mine the number of bushels lost and
plant life and be able to explain how
to pay for it at the local market price
a plant grows. He must be familiar
per bushel at a given date, usually
with the ravages of insects and worms
Oct. 1 on small grain and Dec. 1 on
as enemies to crops and know at a
corn.
The advocates of this plan
glance the symptoms of the different
stress the idea of full market price as
diseases, of which there are many.
its strong point, although one member
He must be athletic and healthy,
may be carrying on his crop a maxi­
able to tramp the fields all day, and a
mum of 40c a bushel on corn while
quick thinker, able to arrive at results
his neighbor carries $1 a bushel, and
surer and quicker in his head than the
the latter pays two and a half times
other man can on paper. He should,
as much for his protection as the
however, never settle a loss without
former.
figures and should lead the assured
The percentage or agreed value
through all the transactions step by
plan is one under which the policy
step so that the loser may know when
issued states that it is agreed that the
the result is reached that it is correct
actual value of the crop is the amount
and has been fairly arrived at.
of insurance carried on it. On this
Must Know Effects of Weather
plan there is no minimum nor maxi­
mum limit. A farmer fixes the value
The adjuster must be familiar with
of his own crops at the time he in­
the effects of the weather for the next
sures them. The market price does ' two weeks following the storm and
not in any way affect the value of a be able to a nicety to determine the
crop insured under this plan, nor does
growing conditions and the degree of
the value of the crop change.
nature’s healing. No loss occurring
Central Western Banker, June, 1929

20
while the crop is still green and grow­
ing should be adjusted within two
weeks from the date of the loss.
Hail insurance needs cooperation
among the managers. In this group
should be included the general agents
and adjusters. Hail insurance men
should get together and by earnest and
concentrated endeavor work out the
many complicated problems which to­
day cause the public to regard hail in­
surance with more or less apathy or
distrust.
Recent Appointments
The Bankers Reserve Life Insur­
ance Company, of which R. L. Robi­
son is president, has made several re­
cent appointments of interest in the
states of Iowa and Nebraska.
C. F. Carl, who has been with the
Midland Life of Watertown, South
Dakota,
becomes
Supervisor
of
Agents for Nebraska. In this capacity
he will be associated with H. B.
Bossart, another former Midland ex­
ecutive.
Mr. Bossert is Agency
Supervisor for a considerable section,
including Nebraska.
A. E. McGlothlen of Des Moines,
formerly with the National Life
Association, was made Supervisor for
Eastern Iowa and J. Philip Orchard
of Council Bluffs, whose former con­
nection was with the John Hancock
Mutual Life Insurance Company, was
made Supervisor for Western, Iowa.
Insurance Invesments
Points in the new Nebraska law
regulating investments of domestic in-

suranee companies were discussed by
C. Petrus Peterson, general counsel
for the Bankers Life of Nebraska, at
a recent meeting of the Lincoln Life
Underwriters Association.
Mr. Peterson said few companies
will be able to meet the standard set
for industrial and public utility bonds
for investment purposes. The new
law permits investments up to 2 per
cent of capital and 10 per cent of as­
sets in preferred and common stocks.
Because of the development of gov­
ernment loan agencies and the great
amount of private capital available
for mortgage loans, competition has
developed that has brought down the
earnings of mortgages, Mr. Peterson
said, and it was to procure a diversi­
fication which would help insure stab­
ility that the Nebraska investment
law enacted.
PASSENGER LIST
Passengers on the Nebraska west
group meeting! special train last month
were as follows :
Omaha
Claude F. Anderson, Assistant to
President, State Bank of Omaha ;
Frank Boyd, Vice President, Omaha
National Bank; C. F. Brinkman. As­
sistant Vice-President, United States
National Bank; C. J. Claassen, VicePresident, Peters Trust Company; J.
F. Coad, President, Packers National
Bank ; W. H. Dressier, Cashier, Stock
Yards National Bank; John Frazee,
Manager, American Surety Co. of
New Y ork; George A. Gregory, Cash­
ier, Federal Reserve Bank ; Wm. B.

The

SERVICE LIFE INSURANCE COMPANY
of Lincoln, Nebraska
B. R. BAYS, President

The Service Life is known as a company of Service,
Ideals and Aggressive Principles

W E S T A N D ON O U R RECORD
STAR TED B U SIN E SS SE P TE M B E R 20, 1923
Standard Business in Force

Total Admitted Assets

$J25,682.7Î5
$140,787.80

$303,724.87

$522,557.94

$767, 380.73

lice. ¡51,
Dec. 81, 1924

$l!H>,000
$8,142,500

Dec. 31, 1925

Dec. 31, 1925

Dec. 31,1927

$7,058,600

$10,829,700

$13,071,662

$1,013,048.00 Dec. 31, 1928 $15,506,000
Central Western Banker, June, 1929

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

Hughes, Secretary, Nebraska Bank­
ers Association; P. B. Hendricks, As­
sistant Vice-President, United States
National Bank; C. A. Jeffrey, State
Agent, National Pinion Fire Insur­
ance C o .; E. F. Jepsen, Assistant
Cashier, First National Bank; Guy
Kiddoo, Vice-President, Omaha Na­
tional Bank; R. H. Kroeger, Assis­
tant Cashier, Live Stock National
Bank; Leslie Kizer, Continental Il­
linois Company, Chicago; Francis
Martland, A. G. Becker & Company,
Chicago; E. Moser, Secretary, United
States Trust Company; R. W. M oor­
head, Editor, Central Western Bank­
er; Laurence M. McCague, First
Trust Company; J. B. Owen, Vice
President, Stock Y a r d s National
Bank; Homer H. Peterson, Director
of Sales, United States Check Book
Co.; Ralph E. Smith, Peters National
Bank; Frank L. Vlach, Vice-Presi­
dent, South Omaha State Bank.
Lincoln
Jack Eiser, First Trust Company,
Lincoln; R. C. Johnson, Assistant
Vice-President. Continental National
Bank; W. B. Ryons, Vice President,
First National Bank.
Greenwood
Phil Hall, President, Greenwood
S t a t e Bank, (President Nebraska
Bankers Association).
Kansas City, Mo.
Richard L. Dunlap, Assistant Cash­
ier, Commerce Trust Company.
Dawson, Nebraska
D a n Riley, President, Dawson
Bank.
Chicago
Mark Collor1, Assistant to VicePresident, Continental Illinois. Bank
& Trust Co.
New Group Officers
Group 1— President, Carl Ganz,
cashier, Farmers and Merch­
ants Bank, A lv o ; vice presi­
dent, A. D. Spencer, cashier,
Bank of Barnston; secretary,
R. W . Heim, assistant cashier,
Bank of Dawson.
Group
2— President, Emil
E.
W olfe, vice president, Bank of
Morse Bluffs; vice president,
D. V. Blatter, president, Albion
N a t i o n a l Bank; secretarytreasurer, Herman F. Meyer,
cashier, Farmers State Bank,
Scribner.
Group 3— President, H. L. Ger­
hart, vice president, First Na­
tional Bank, Newman Grove;
vice president, Rollie W . Ley,
p r e s i d e n t , State Bank of
W ayne; permanent secretary,
Fred W . Muller, cashier, Se-

21
curity State Rank, N orfolk ;
treasurer, A. G. Zuhlke, vice
president, First National Bank,
Bancroft.
Group 4— President, Wade R.
Martin, president, Commercial
Banking Co., Stratton; vice
president, Ralph Bloom, cash­
ier, Bank of A xtell; secretary,
Verne Manahan, assistant cash­
ier, First National Bank, Hast­
ings.
Group 5— President, John Lowe,
president, Farmers State Bank,
Kearney; vice president, J. G.
Gaylor, president, McDonald
State Bank, North Platte; sec­
retary, F. J. Sibal, cashier, Cit­
izens Bank, Ogallala.
Group 6— President, D. A. Criss,
president, First National Bank,
Stuart; vice president, A. H.
Metzger, president, A n c h o r
Bank, Merriman ; secretary, W.
P. Rooney, cashier, Chadron
State Bank.
Group 7— President, Oscar Love­
lace, cashier, American Bank,
Mitchell; vice president, C. H.
B u r k , president Bridgeport
State Bank; secretary, Marius
Christensen, assistant cashier.
Liberty State Bank, Sidney.

deeper she sinks into the mud. The
only way we can get out of the rut is
by jacking the old bus up with service
charges, and then give her the gas and
be on our way. Every banker is try­
ing to do the right thing, but there is
no right use of the wrong thing. By
c o o p e ra tio n , state-wide cou n sel,
through association, let us not only
concentrate our efforts but capitalize
our efforts so that they bring us a re­
turn, for after all we have nothing to
sell but our honest effort.
Baseball is an all-American game
requiring decision and teamwork. Just
imagine for a minute that out in front
of us is a big ball game, and over
there on the right is a tremendous
grand-stand filled to capacity with a
cheering tempermental crowd. Right
out in front of us are the ball-players,
who are you and /. Over there in the
center of the diamond is the umpire.
There are just three decisions that
the umpire can make that will govern
the game and satisfy that great mass
of people in the grandstand. They are,
“ You are safe,” “ You are out.” It
makes little difference to the crowd
whether you or I are “ safe” or “ out.”
The crowd will only cheer or jeer for
a few minutes, and we are soon for­
gotten ; but the decision that counts,
the decision that satisfies, is when the

umpire raises his hand, and his voice
floats out over the diamond, “ play
ball,”
The Comptroller of the Currency
in charge of the supervision of our
National Banks, Secretary Bliss of
the Department of Trade and Com­
merce, in charge of the supervision of
our State Banks, are the umpires, and
we have heard their decision to “ Play
Ball,” not only in a new game, but in
a new era of better banking for the
safety of depositors, borrowers, and
stockholders. W e are all warmed up.
Let’s win the game.
A Plan of Reading
As Rastus was reading the sport
news in the paper, he was interrupted
by his husky wife this: “ Listen hea
yo ! ah didn’t buy yo dat papah foh
yo entehtainment. Jus’ confine yoself
to dem help want ads, niggah.”
Blessed are the meek, for they shall
inherit what is left of the earth after
everybody else gets through.
You may not know my supreme
happiness at having one on earth
whom I can call friend.— Lamb.
A friend should be like money,
tried before being required, not found
faulty in our need.— Plutarch.

4 Essentials o f G ood
Bank Management
( C o n t i n u e d f r o m P a g e 6)

pay the bank. Should Bill negotiate a
loan and then decide to stay away
when the note comes due, and the
bank is forced to carry it as past due
paper, Bill is very apt to pay 10 per
cent plus, and the cost of any mileage
or additional efforts on the part of
the banker.
So much for Bill.
All well informed bankers realize
that the time has come when we must
analyze ourselves, and the old un­
profitable habits that were along the
line of least resistance must be forgot­
ten. This can best be accomplished by
mass application. By agreeing as an
association or organization that cer­
tain general practices which are un­
profitable must be eliminated., and
then all of us carry out our part. This
will strengthen public confidence more
than any other one thing, in addition
to placing the state banks of Nebras­
ka on that high standard toward
which every serious banker is striv­
ing.
Frankly, we have been like a stalled
truck in a rut, and the more gas we
give her the more she spins and the


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

A contract with

O m ah a

L i f e In s u r a n c e

Co m pan y

Omaha, Nebraska

TOGETHER
with the cooperation of the
Home Office, might be
valuable.

E. M. SEARLE, JR., President

Central Western Banker, June, 1929

22
imiMinmmniiititiiminmimnniniminiinitimHHiHlninnnmnmmimnmwlniminnitiniinttimimmmiinmimiMHHHntmmnmHimnmwiniltmiillnimiim m

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ident, P. W. Carrahar, cashier, and
the board of directors consist of the
above named together with John
Thomssen and F. T. Shaughnessy.
I*1111 j H A L L , I’ resi (lent
Nebrsisksi B a n k e r s A s s o c ia tio n

Heads Examiners
George Wilson, senior member of
the Nebraska trade and commerce
department’s force of bank examiners,
has been placed at the head of the
examining department}, a vacancy
which occurred upon the resignation
of Payson D. Marshall. Marshall has
taken a position with the First Trust
company of Lincoln.

W M . B . H IIG H R S , S e c re ta r y
N e b ra sk a B a n k e r s A s s o c ia tio n

Buys Alda Bank
The Nebraska State Bank of Grand
Island, Nebraska, has purchased the
business of the Farmers State Bank
of Alda, Nebraska, and assumes the
obligations to the depositors by tak­
ing over an equivalent amount of
notes and mortgages held by the
Farmers State Bank of Alda.
The Farmers State Bank has a cap­
ital of $25,000.00, surplus of $5,000.
00 and undivided profits of $2,200.00.
Fred Thomssen, of Alda, is presi­
dent, Mrs. Bessie Carrahar, vice-pres­

Locates in Laurel
C. A. Abell, formerly of Elk Point,
S. D., where for six years he was
treasurer and register of deeds for
Union county, has succeeded A. A.
Söderström as cashier of the Security
National bank of Laurel, Nebraska.
Mr. Abell, also has several years ex­
perience in state and national banks.
Attend Meeting
The Albion, Nebraska, banking in­
stitutions were well represented at
the annual convention of the Group
Two bankers held at Columbus. D. V.
Blatter and Alva Coulter attended
from the Albion National; James

helpful...
O
1TTSTANDING among the in­
stitutions cooperating with Nebraska
banks and through them with their
customers, is the National Bank of
Commerce, a helpful, friendly bank,
anxious to extend its helpful service
to you.

National Bank of Commerce
L IN C O L N
OFFICERS
M.

W

e il ,

President

C arl W

e il ,

Central Western Banker, June, 1929

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

Vice-President

B

yron

D

unn,

Cashier

Fox of the Citizens State was in
attendance for the session and Carroll
Krause was present for a short while
in the afternoon; those attending
from the First National were F. S.
Thompson, F. M. Weitzel and Roy
Day, while the Farmers State was
represented by R. T. Flotree, H. B.
Judd, and Raymond Whiting.
To Reopen
Necessary arrangements have been
made for the opening of the Farm­
ers Bank at Raeville, Nebraska.
New Stock has been subscribed and
real estate held by the bank has
been disposed of and all things re­
quired by the banking board have
been done and as soon as a few
necessary preliminaries are disposed
of the bank will be ready for busi­
ness again.
Heads Group Three
H. L. Gerhart of Newman Grove
was elected president of group three,
Nebraska Bankers association, at the
closing session. Mr. Gerhart is vice
president of the First National bank
at Newman Grove. Rollie W . Ley of
Wayne was chosen vice president;
Fred Muller of Norfolk, secretary,
and A. G. Zuhlke of Bancroft, trea­
surer. Trustees are Ray Swanson of
Neligh; Mark O ’Shea, Madison, and
W . E. Minier, Oakland.
More than 400 persons attended the
banquet.
Reappointed
Reappointment of Clarence G.
Bliss, Elm Creek banker and former
state senator, as Nebraska trade and
commerce secretary under the code,
which Governor Weaver submitted to
the legislature in joint session was
unanimously confirmed by a vote of
121 to 0.
Mr. Bliss has been serving tem­
porarily as a holdover official from
the McMullen administration, pend­
ing reorganization of the state bank­
ing administration. His name was not
sent to the legislature last January,
when three other code secretaries
were appointed and confirmed, be­
cause Governor Weaver at that time
contemplated the creation of an advi­
sory banking board, as proposed in
one of his bills; but the measure fail­
ed to pass.

23

were completed re­
cently whereby the Central Na­
tional bank of Lincoln, Nebraska, was
merged with the First National bank
of the same city and a consolidation
of business effected. The physical
merger took place at the close of
business May 17th. The Central Na­
tional will be liquidated and its char­
ter surrendered. L. K. Roberts, the
representative of the comptroller of
the currency in the Tenth federal re­
serve district, is supervising the de­
tails.
The First National purchased the
entire capital stock of the Central Na­
tional, $20,000, paying $200 a share
therefore, a total of $400,000. It has
a book value of $165. Shareholders
of the Central will be largely paid in.
cash, but the majority of them will
become stockholders o f the First Na­
tional to a total sum of $50,000.
The same plan as was followed
with the merger of the City National
with the First was pursued in this
case. The First National capital will
be increased to $850,000 and surplus
to $275,000. Its last published report,
shows deposits of $12,401,000, while
those o f the Central were $2,996,000.
Increases since then will bring the
combined deposits to close to sixteen
million dollars. The First has nearly
eight millions in loans, $2,310,000 in
bonds and warrants and cash and
sight exchange of nearly three mil­
lions, total resources being $13,467,
000. The Central nearly two millions
" V i E G O T iA T i O N S

New Issue

in loans, a million in cash and sight
exchange and bonds and warrants of
$800,000, or total resources of $3,650,
000. It had capital, surplus and un­
divided profits of $130,000.
Official of that bank will join the
official force of the First National. L.
C. Chapin, vice president of the Cen­
tral National bank, will be an active
vice president of the First National
and E. E. Emmett and Floyd Pope,
respectively cashier and assistant
cashier of the Central National, will
be elected to equally important posi­
tions in the First National. W. W.
Hackney, former Central National
bank president, will be with the First
National temporarily until he makes
more definite plans. The First Nation­
al directorate will be increased to
provide for representation of the
former Central National stockholders.
Reduced to a cash valuation the Cen­
tral National stock figured at $200
per share in the deal, making a total
amount of $400,000.

convention city in accordance with the
custom of the group to hold its annual
meeting in Fremont and Columbus.
FRED H. EYLER, formerly of the
Omaha National Bank of Omaha,
Neb., and afterwards vice president
of director of the Drovers and Mer­
chants bank of St. Joseph, has gone
to the State Bank of Chicago, to be­
come manager of the Chicago branch
of the Omaha National company
which is affiliated with the Omaha
National bank. Mr. Eyler went to
Chicago at the invitation of Walter
W . Head, president of the State bank
of Chicago, and chairman of the
board of the Omaha National bank.
Mr. Eyler was born in Omaha. He
was in the loan department of the
Omaha National bank from 1919 to
1920. He is now 31 years old.
T.
LESLIE K IZER has been
appointed the manager of the Oma­
ha office of the Continental Illinois
company. This is the investment com­
pany which was formed by merging
the interests of the Continental Na­
tional Bank and Trust company and
the Illinois Merchants Trust company
in Chicago forming an institution
with 20 million dollars capital. Mr.
Kizer has been connected with the
Omaha office under James W. Con­
nell, who has been transferred to New
York. He will serve all of Nebraska
and Council Bluffs, la.

President of Group Two
Emil F. W olfe, vice president of
the Bank of Morse Bluff, was elect­
ed president of Group 2 of the Ne­
braska Bankers’ association at the
31st annual convention. He was vice
president of the organization the past
year.
D.
V. Blatter, president of the
Albion National bank, was elected
GEORGE W. W O O D S of Lin­
vice president, and Herman F. Meyer, coln, Neb., who resigned not long ago
cashier of the Farmers State bank at as cashier of the Lincoln National
Scribner, was relected secretary.
bank, has been appointed by Governor
Fremont was chosen as the 1930 Weaver of Nebraska, to the new post

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1929 Issue

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Federal Reserve Bank of St. Louis

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Central Western Banker, lune, 1929

24
of state bank commissioner, created
by the last legislature. Mr. W oods is
50 years old. His salary is to be 5
thousand dollars a year. In making
the appointment Governor Weaver
said that he believed Mr. W oods ex­
ceptionally well qualified because of
his business and his banking experi­
ence.
TH E F IR ST N A T IO N A L Bank
of Minatare, Neb., in the North Platte
valley, was opened May 16. It gives
the community banking service lost
with the closing of the state bank in
February. The new bank has a capital

of 25 thousand dollars and a surplus
of 5 thousand dollars. Frank Abegg
of the First National bank of A l­
liance, Neb., is president. G. A. Etter
is cashier. The directors and stock­
holders of the new bank are Alliance,
Scottsbluff and Minatare business
men.
A T T O R N E Y GEN ERAL SOR­
ENSEN of Nebraska has moved for
a final liquidation of the affairs of the
Ralston state bank which has been
operated by the guaranty fund com­
mission. Mr. Sorensen filed a petition
in the district court at Omaha for

The

Continental National Hank
LINCOLN, NEBRASKA

“ A Bank f or Bankers ”
Our consistent growth and progress, contributed to
largely by our correspondents throughout Nebraska, is
indicative of the careful service and prompt attention
rendered them.
We solicit the accounts of Banks and Bankers, offer­
ing every facility and service.

O F F IC E R S
C H A S . T . K N A P P , C h a ir m a n o f t h e B o a r d .
E D W I N N. V A N H O R N E , P r e s id e n t
W . S. B A T T E Y , A s s t . V i c e - P r e s .
T B. S T R A IN , V ic e - P r e s id e n t
R A Y C. J O H N S O N , A s s t . V i c e - P r e s .
E D W A R D A. B E C K E R , C a s h ie r
W H E A T O N B A T T E Y , A s s t . C a s h ie r .

QE

National B an k
'.Trust Company
O M A H A

‘An Unbroken Record o f Seventy Years
is a Guarantee o f Safe and
Satisfactory Service”

OFFICERS:
M. T. B arlow , President of the Board

R. P. M orsman , President
G. H. Y ates , Vice-President
R.
J. C. M cClure, Vice-President
FT.
T. F. M urphy , Vice-President
E.
C. F. B r in k m a n , Ass’ t V.-President
A.
P. B. H endricks, Ass’ t Vice-President V.

Central Western Banker, June, 1929

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

R. R ainey , Cashier
E. R ogers, Assistant Cashier
E. L andstrom, Assistant Cashier
L. V ickery, Assistant Cashier
B. Caldwell, Assistant Cashier

liquidation of the bank, setting forth
that liabilities of more than 200 thou­
sand dollars could only be met if
every available outstanding account
were collected and full value realized
on other property.
A T BLOOM FIELD, Neb., the
State Bank of Bloomfield has been re­
organized and reopened under the
provision of a state law which pro­
vided that 85 per cent of stockholders
can revive closed institutions. The
reorganized bank has a capital of 25
thousand dollars and a new surplus of
10 thousand dollars.
Slow and doubtful assets, includ­
ing $56,933 of real estate and a total
of 170 thousand dollars, have been re­
moved. The old capital and surplus of
35 thousand dollars was charged off.
Sales of the other assets to depositors
yielded 135 thousand dollars.
The new board of directors of the
bank comprises J. B. Gossard, presi­
dent; F. S. Mueller, vice president;
Stephen Morten, cashier; J. H. Mettlen, J. J. McCort, J. H. Gesler, W . D.
Funk, Rudolph Wolpert.
Deposits in the reformed bank are
519 thousand dollars, with a cash re­
serve of 158 thousand dollars, 15 per
cent in excess of the legal require­
ment.
Secretary Clarence G. Bliss of the
state department of trade and com­
merce praised the “ Community spirit”
of Bloomfield which made it possible
to restore the bank.
The bank did not go into the
guaranty fund for liquidation. The
depositors paid 135 thousand into the
organization by charging that amount
off their deposit credits, and the new
stockholders restored the capital and
surplus by paying into the bank, 35
thousand dollars. The depositors re­
ceived 135 thousand dollars, face
value, of the bad paper in the bank,
from which they expect to realize 35
thousand dollars, leaving a probable
final loss, of 100 thousand dollars, or
nearly 15 per cent of the former 700
thousand dollars of deposits in the
bank.
A SH T O N C. SH ALLEN BERGER of Alma, Neb., former governor
of the state and former congressman,
has been appointed, by Governor
Weaver, to conduct the investigation
in the state banking department and
guaranty fund commission, authoriz­
ed by the last legislature which
appropriated 150 thousand dollars for
the work.
Mr. S h a lle n b e rg e r im m ed ia te­
ly opened an office in Lincoln, and
began organizing for his task. His
salary will be 600 dollars a month.

25
On the basis of the finding of Mr.
Shallenberger, and on the result of
the appeal to the supreme court of
the state from District Judge Lincoln
Frost’s opinion that special assess­
ments under the guaranty fund are
unconstitutional, Governor Weaver
expects to call a special session of the
legislature to frame new banking laws
for Nebraska.
Mr. Shallenberger was governor of
the state when the bank guaranty law
was placed upon the statute books 20
years ago. He is a democrat in poli­
tics, while Governor Weaver is a re­
publican. Governor Weaver announc­
ed that the appointment was made en­
tirely outside of politics, solely with
the view of obtaining all the facts
about the condition of state banking
affairs and the reasons for the deficit
in the guaranty fund.
Mr. Shallenberger will hold hear­
ings in various communities where
state banks have failed, and will sup­
ervise the audit of the books of the
guaranty fund commission. His in­
vestigation is expected to require
possibly a year.

Building on a Sound Basis
a t is f a c t o r y

S

service is the basis o f ail

permanent business relationships. It has been

the privilege o f this old progressive institution to

W H E N A B A N K IS insolvent is
defined by a statute passed by the Ne­
braska legislature, House Roll No. 98.
The classification, insolvent, is held to
apply to a bank when any of the
following conditions exist:
1. If actual cash value of the
assets is not enough to pay the liabili­
ties.
2. If the bank is unable to meet
the demands of its creditors in the
usual and customary manner.
3. If it shall fail to make good its
reserve as required by law.
4. If the stockholders shall fail to
make good any capital impairment
after receiving due notice of such im­
pairment from the state banking
bureau.

act as the Chicago correspondent o f a large num­
ber o f out-of-tow n banks over a long period o f years.
This bank’s methods o f handling the business o f
banks and bankers are adapted to modern needs
and measure up to every requirement. Inquiries
w ill receive the prompt attention o f executive
officers.

O scar H . H a u g a n

Chairman of the Board
L eroy A . G o dd ar d

R E V IV IN G OF dormant saving ac­
counts in the Union National bank of
Fremont has been undertaken by
Ross L. Hammond, the new presi­
dent, with results that have already
proved gratifying. An examination of
the accounts of the savings depart­
ment revealed that many of them had
been inactive for years, with relative­
ly small sums of money accumulating
interest. Letters were sent to all the
saving depositors. In the letter the
customer was told the present balance
in his savings account, and was in­
vited to build it up by regular weekly
or monthly deposits.
A number of depositors came into
the bank to confess that the account
was one they had entirely forgotten.
In some instances accounts had been


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

Vice-Chairman
W

alter

W . H ead

W

President

alter

J. C

ox

Executive Vice-President

-

State Bank
o f Chicago
A

Trust Company

'—'

LA SALLE AND MONROE STREETS
Member Federal Reserve System
C

a p i t a l

,

S

urplus

and

U

ndivided

P

rofits

O

ver

$ 1 3,70 0,00 0

Central Western Banker, June, 1929

26

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

OUR B A N K IN G ROOM
M A IN

FLOOR RIGHT

TH E M A N N E R IN W H IC H

YOUR

A C C O U N T IS H A N D L E D IS OF
G R EA T IM PO RTAN CE
TO YO U .

The members of our office force take a
personal interest in the duties assigned
to them which results in the efficient
and intelligent handling of all business
entrusted to us.

started for children, and then allowed
to become inactive. One young man
told of his surprise and pleasure in
learning that he had more than $70 in
a savings account, of whose existence
he had entirely forgotten. His experi­
ence was made the text of a second
letter to customers that pointed out
the growth of money through inter­
est.
Four laws of importance to banks
and banking were passed by the Ne­
braska legislature, in the session that
adjourned late in April.
Probably the most important of
these was Governor Weaver’s bill
providing for an audit and investiga­
tion of the bank guaranty fund com­
mission; providing for appointment
of a chief examiner; and providing
for an appropriation of i 50 thousand
dollars with which to conduct the in­
vestigation.
Another measure defined an in­
solvent bank, declaring an institution
insolvent when cash value of assets is
not enough to pay liabilities; when
fhe bank is unable to meet the de­
mands of creditors; when it fails to
make good its reserve as required by
law ; when stockholders fail to make
good any capital impairment after re­
ceiving due notice from the banking
department.
Another measure, a constitutional
amendment, provides that st o c kholders of banks shall become im­
mediately liable upon the closing of
banks for their proportionate liability
and assessment.
A final measure requires state
banks, to furnish security bonds for
county funds deposited with them.
G W YE R H. Y A T E S, vice presi­
dent of the United States National
bank of Omaha, returned recently
from a trip to New Orleans and
Biloxi, Miss. He attended sessions of
the American Bankers association.

Stock Yards National Bank
of
South Omaha

The Only Bank in the Union Stock Yards

T W O H U N D RED of the younger
employes of the Omaha and Council
Bluffs banks participated in the an­
nual dinner dance of the Omaha
chapter of the American Institute of
Banking, at the Ad-Sell grill in Oma­
ha recently.
William Bruitt of the United States
National bank of Omaha, the presi­
dent of the chapter, presided at the
banquet, introducing Rabbi Frederick
Cohn who talked on “ The W orld in
the Making.”
The haughty are always the vic­
tims of their own rash conclusions.—
Le Sage.

Central Western Banker, June, 1929

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

27

To Visit Omaha
Wednesday, June 12, will be Oma­
ha day for Douglas county 4-H club
members and leaders, and no attempt
will be made to make the tour of the
city at the time the Club Week dele­
gation visits Omaha on June 7.
This change in plans is necessitated
on account of the increased club en­
rollment in Douglas county and the
larger number of members which
will be in attendance at Club Week.
The Douglas county bunch will
visit some packing house in the morn­
ing be entertained by the Stock Yards
company at noon luncheon. The af­
ternoon will be spent up town visiting
Omaha industries.
Meet at Lexington
A meeting has been called at Lex­
ington, Neb., early this month, to aid
in the campaign to increase the con­
sumption of meat. Prominent stockmen and local business men are back­
ing the movement, as no state in the
union is more vitally interested in
live stock consumption and meat pro­
duction than Nebraska.
L. R. White, a leading stockman
of Lexington was appointed a mem­
ber of the Nebraska Meat Publicity
committee at the Recent Feeders’ Day
meeting in Lincoln, and proposes to
have his part of the state well inform­
ed and active in the campaign. Pie
was in Omaha making arrangements
to have Manager Pollock and other
prominent speakers at the Lexington
meeting.
Corn Yield Contest
Over 200 entries are expected in
the Nebraska corn yield contest this
year according to P. H. Stewart, ex­
tension specialist in agronomy. This
will be the largest enrollment ever en­
tered during the six years in which
state-wide contests have been held.
The purpose of these contests is to
determine the best practices which
will result in the largest yields for a


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

given community. Profit per acre will
also be considered. The state has been
divided into eastern, central, and
western regions in order that farmers
living in different parts of the state
may have equal opportunity.
The contests in the past have prov­
ed valuable in demonstrating the
value of crop rotations and tillage
practices which increase soil fertility
and productivity. They have also dem­
onstrated the use of labor saving ma­
chinery to increase profits.
Several farmers have raised more
than 100 bushels of corn per acre at
a cost very little higher than the aver­
age cost per acre. The contest has
shown up the value of legumes as soil
builders and proven that one acre of
good corn returns as much net profit
as 13 acres of average corn.
Heavier Feeding
Heavy cattle feeding operations are
predicted for next fall and winter
around Billings, Mont., bv F. C.
Pierce, head of the Billings Meat Co.,
who was. in Omaha recently with cat­
tle, and reported seehig plenty of
snow in Wyoming on the way down.
“ Our spring is about 30 days late.”
he admitted, “ but the beet acreage is
large and that means there will be
plenty of pulp. It was the scarcity of
pulp that cut down the number of cat­
tle put on feed there last fall. With
the exception of one string, the feed
lots there are getting just about clean­
ed out.”
E. M. Leflang Dies
E. M. Leflang. 78, rated as one of
Omaha’s wealthiest men, is dead from
paralysis. Leflang came to Nebraska
following the Chicago fire and settled
at Lexington, where he raffed cattle
and sheep. His live stock holdings ex­
tended to adjoining western states
and soon he became known as one of
the country’s biggest stock feeders.
He became connected with flour
mills, banks, elevators and indepen~

dent telephone companies in western
Nebraska. Selling out most of his Lex­
ington holdings in 1908, he determin­
ed to retire from active business.
Truck Shipments
In order to facilitate the handling
of stock shipped by truck and to elim­
inate delay and chance for errors, the
board of directors of the Omaha Live
Stock Exchange at a meeting recently
pased a resolution recommending that
where stock belonging to several own­
ers is shipped in one truck, it should
all be handled by one commission
firm.
While only one waybill should be
made out for the Lhiion Stock Yards
company, a separate ticket covering
each owner should be made out for
the commission firm just as has been
done in the past. A description of the
stock, with identification marks,
should be shown on this ticket. In
case of different owners’ stock which
is partitioned off in the truck, the dif­
ferent lots partitioned off may be con­
signed to different commission firms.
Good in Colorado
“ Crop conditions are the best they
have been in many years in our sec­
tion of the country,” said Jacob Asmus, prominent feeder of Ft. Morgan,
Colo., who was on the Omaha market
recently with a load of steers that
averaged a little over 1,000 pounds
and sold at $13.90.
“ W e have had an abundance of
moisture this spring and the ground
is in excellent shape for crops of all
kinds, as far as stock is concerned I
would say there is about the normal
amount on feed in our locality for
this time of the year. This is true of
both cattle and hogs.
Ardent Suitor— I ’ll give you a dime
if you’ll bring me a lock of your sis­
ter’s hair.
Little Brother— Gimme a buck an’
I ’ll bring you de whole wig.
Central Western Banker, June, 1929

28
Feeding History
The condition of this season’s cattle
market substantiates the conclusions
drawn from experimental work done
in connection with fattening beef
steers of varying ages at the Ne­
braska Experiment station, according
to a recent interview with Prof. H. J.
Gramlich under whose direction the
tests were conducted.
Men who purchased heavy feeding
steers last fall have had to sell them
on an unsatisfactory market. They
have fed under adverse weather con­
ditions and in addition paid an ab­
normally high price for their corn,

especially in view of the fact that
there was a heavy corn crop in 1928.
The result has been a heavy loss for
the feeder of such cattle.
On the other hand, the feeder who
had the “ nerve” to buy light cattle
last fall can hold them, continue to
get satisfactory gains and probably
sell on a more favorable market which
Professor Gramlich feels will mater­
ialize as soon as the present marketward rush is over.
The results of the work done with
steers of varying ages are now pub­
lished in Experiment Station Bulletin
229 which is available for distribu­
tion. The conclusions from the tests

E INVITE you to become better

W

acquainted with the personal
contacts it is possible for your

institution to establish with our com­
pact bank— to know what the advant­
ages can be in designating us your Chi­
cago correspondent.

are verified in the present cattle mar­
ket situation.
In these tests, the younger cattle
made consistently larger and more
profitable gains over a long period of
feeding thafi did the older cattle. In
fact, the older cattle failed to make
satisfactory gains after a 75 to 100day feeding period. The saddest con­
dition was the unimpaired appetites
of the older steers.
In contrast, the younger cattle made
profitable gains over 200 to 250 day
feeding periods. The most signifi­
cant conclusions with reference to
the present situation, is the fact that
the feeder of heavy cattle must mar­
ket his cattle when they are ready to
go, regardless of the market condi­
tions. The man who feeds younger
cattle can hold them for a longer
period, if necessary, to secure a favor­
able market, and yet get satisfactory
returns from his feed.
A further advantage that the
feeder of young cattle enjoys is that
of a greater demand for his product.
The cuts from the heavy cattle must
be absorbed by a restricted class of
trade such as large hotels and restaur­
ants of the east while the cuts from
the smaller animals are in demand by
the majority of housewives.
In speaking of cattle feeding in
general, Prof. Gramlich says that the
feeers of heavy cattle must buy his
feeder cattle at an appreciably lower
price per hundred pounds in order to
realize a profit on the finished pro­
duct. On the other hand, the feeder
of lighter cattle can operate on a
smaller margin between the price of
his feeders and the finished beeves.
He estimates that the heavy cattle
must bring at least $1.00 per hundred
more as finished beef than the lighter
cattle to realize satisfactory returns.

Seed Potatoes

THE N O R TH ER N
TRUST COM PANY
CHICAGO
In the Heart of the Financial District
Northwest Corner LaSalle and Monroe Streets

Central Western Banker, June, 1929

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Federal Reserve Bank of St. Louis

Nebraska certified seed potatoes
have again proved themselves to be
among the most healthy seed lots for
the southern potato grower to plant.
Prof. H. O. Werner, Nebraska ex­
periment station horticulturist, re­
cently inspected potatoes at Hastings,
Florida, grown from western Nebras­
ka seed and found that they were al­
most entirely free from disease.
Nebraska seed potatoes have gained
a reputation for themselves among
southern potato raisers who buy large
quantities of seed from western Ne­
braska growers each year.
While
seed potatoes from other sources are
being introduced into the southern
region the demand for the Nebraska
grown product maintains a satisfac-

29
others only
disease.

tory lead. The freedom from disease
which the Nebraska potatoes show
is one of the reasons for the ready
market in the southern states where
ordinary potatoes display a greater
percentage of disease.
Growers of healthy seed potatoes
dig their “ spuds” in the fall, ship
them thruout late fall and early win­
ter to southern farmers who plant
them almost immediately. Early in
the spring the potatoes are ready for
market.
In spite of the low market price for
ordinary potatoes last year there will
be about normal planting by growers
of certified seed in western Nebraska
according to Professor Werner.
Growers of certified seed potatoes
have received from 75 cents to a dol­
lar and a half more per hundred for
their product than growers of table
stock during the low price period.
Each year some of the certified
seed potatoes grown by members of
the Nebraska Potato Growers Co-op­
erative are planted on trial in the
southern states. This test is carried
out in order to determine just how
free from disease the certified seed
really is. During the four days that
Professor Werner took readings on
the test at Hastings, Florida, he
found some lots practically free and

slightly

affected

Faster Service
Monthly figures on livestock slaugh­
tered under Federal inspection will be
available at an earlier date hereafter,
it was announced by the United States
Department of Agriculture.
Through close cooperation between
the Bureau of Agriculture Economics
and the Bureau of Animal Industry, a
new system was recently put into ef­
fect which made possible the release
of the April figures on May 7—-two
weeks earlier than was possible under
the old method. Hereafter the depart­
ment expects to have the data avail­
able not later than the 8th day follow­
ing the month for which they were
compiled.
Federal meat inspection is conduct­
ed at approximately 850 establish­
ments in more than 250 cities and
towns, the department says, hence
the collection and summarizing of the
complete data require highly organiz­
ed clerical work and prompt dispatch
on the part of field stations. Figures
from some of the stations are trans­
mitted to Washington, D. C., by radio.

with

Freight Rates Reduced
Doubt that proposed rate cuts on
wheat from western shipping points
to the eastern seaboard and the gulf
would aid in keeping up grain prices
was expressed by traders in Omaha.
Western trunk railroads recently
announced freight reductions ranging
from 4 to 20 cents from western
points to Chicago, St. Louis, New Or­
leans and lower lake ports, following
the lead of eastern roads.
The combined reductions announc­
ed by the two systems will result in
cuts of from 7C cents to 11% cents
per 100 pounds. It was pointed out in
the announcement of the reductions,
which are subject to approval by the
Interstate Commerce commission, that
the measures are of an emergency na­
ture and must not be regarded as set­
ting a precedent.
The reductions are made in connec­
tion with administration efforts to
bring about farm relief.
Those familiar with the grain mar­
ket pointed out that the reductions
will permit perhaps a greater move­
ment o f wheat to the seaboard for ex­
port, but the question was raised as
to where the wheat will be sent.

Elected President
Roy W. Motes of Axtell, was elect­
ed president of the Marshall, Kansas,
County Bankers’ Association recently.
W. J. Burr of Blue Rapids was presi­
dent last year.

W e A ssu re Efficient Service In Handling
Live Stock Collections
and A ll Other O m aha Business

LIVE STOCK NATIONAL BANK
Union Stock Yards
OMAHA
W . P. ADKINS, President
R.

ALVIN
HOW ARD O. WILSON, Cashier

H. KROEGER, Asst. Cashier


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Federal Reserve Bank of St. Louis

E.

JOHNSON,

Vice-President

L. V. PULLIAM, Asst. Cashier
W . S. HOGUE, Asst. Cashier

Central Western Banker, June, 1929

30
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South Dakota News
lllltllllllllllllllllllllllllllllllllllllinillllllMIIIIIIIIIIIIIIIHIIIIIIIIIIIIIIIIIIIinillllMtIllllllllillltlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllMIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIM

1930 Group Officers
The following are the names of
newly elected officers for the several
groups of the South Dakota Bankers
Association for 1930, and also the
members of the executive committee
of the different groups:
GROUP I
1930 meeting at Vermillion: Presi­
dent, T. N. Hayter, Vermillion; vice
president, Geo. K. Brosius, Vermil­
l i o n ; secretary-treasurer, Maurice
Chaney, Vermillion.
Executive committee: Bon Homme
County, R. W . Griffith, A v o n ; Charl­
es Mix County, H. F. Warner, Geddes; Douglas County, E. E. Dubes,
Armour; Clay County, M. J. Chaney,
Vermillion; Hutchinson County, J. W.
Ullmer, Menno; Turner County, F. E.
Jackson, Hurley; Union County, Law­
rence Authier, Elk Point; Yankton
County, J. M. Lloyd, Yankton.
G RO U P II
1930 meeting at Canton: President,
E. A. Weiseth, Colman; vice presi­
dent, C. T. Hegnes, Baltic; secretarytreasurer, G. J. Moen, Canton; ex­
ecutive council member, J. R. Coonrod, Flandreau.
Executive committee : Lake County,
C. A. Stensland, Madison; Lincoln
County, Louis Jacobs, Lennox; Min­
er County, B. R. Laird, Fedora; Min­
nehaha County, Otto Meyhaus, Sioux
Falls; McCook County, Wm. Hoese,

Spencer; Moody County, W . G.
Cowles, Flandreau; Turner County,
Earl Hansen, Parker.
GROUP III
1930 meeting at Mitchell: Presi­
dent, E. W. Radeke, Alexandria; vice
president, A. F. Smith, Mitchell; sec­
retary-treasurer, E. A. Loomer, Mit­
chell ; executive council member, L.
M. Larsen, Wessington Springs.
Executive committee: Aurora, J. P.
Gilbertz, White Lake; Brule, W . B.
Martin,, Pukwana; Davison, C. L.
Breckenridge, Ethan; Hanson, C. T.
Coyne, Em ery; Hutchinson, William
C. Rempfer, Parkston; lerauld, H. F.
Jensen, Wessington Springs; Jones,
George Haynes, Draper; Lyborn, O.
E. Adams, Artesian.
GROUP IV
1930 meeting at Watertown: Presi­
dent, J. A. McGillivray, Clark; vice
president, A. R. Johnson, Brookings;
secretary-treasurer, R. D. Goepfert,
Watertown.
Executive committee: Grant, P. C.
Lien, Revillo; Deuel, Elmer Peter­
son, Brandt; Hamlin, L. A. Jacob­
son, Brayant; Clark, L. J. Warkenthien, Willow Lakes; Codington, H.
D. Rice, Watertown; Brookings, C. E.
Lee, Volga.
GROUP V
1930 meeting at H uron: President,
M. R. Brown, Onida; vice president,
Russell Baird, M iller; secretary-treas­

U N IT E D — B E T T E R T O S E R V E T H E N E E D S
T H E G R E A T M ID D L E W E S T

F IR S T N A T IO N A L
BANK ofCHICAGO
Affiliated

FIRST TRUST AND
SAVINGS BANK
RESOURCES

EXCEED

Central Western Banker, June, 1929

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Federal Reserve Bank of St. Louis

$600,000,000.00

OF

urer, Geo. M. Townsend, Huron; ex­
ecutive council member, Geo. C. Fullinweider, Huron.
Executive committee: Beadle, L. O.
Anderson, Hitchcock; Faulk, J. P.
Shirk, Faulkton ; Hand, C. W. Gard­
ner, Ree Heights; Hyde, R. J. Drew,
Highmore; Potter, R. Richardson,
Gettysburg; Spink, M. J. Twiss, Doland; Sully, Arthur Owens, Onida;
Kingsbury, T. H. Meyer, DeSmet;
Hughes, L. L. Branch, Pierre.
GROUP VI
1930 meeting at Webster: Presi­
dent, H. E. Knox, Groton ; vice presi­
dent, F. R. Harding, Langford; sec­
retary-treasurer, J. Schad, Roslyn.
Executive committee: Brown, C. L.
Seeman, Warner; Marshall, W . L.
Johnson, Kidder; Day, A. E. Lundeen, Bristol; Grant, L. N. Saunders,
Milbank (Saunders) ; Roberts, Id. A.
Fenner, Corona.
GROUP V II
1930 meeting at M obridge: Presi­
dent, Wilson Eyer, Lemmon, vice
president, C. W . Christen, Roscoe;
secretary-treasurer, H. A. Swenson,
Mobridge.
Executive committee: Edmunds, C.
W . Christen, Roscoe; McPherson,
Phil Schamber, Eureka; Campbell, N.
S. Schirber; Corson, R. H. Jackson,
McIntosh; Perkins, R. A. H. Brandt,
Bison; Dewey, Oscar Olson, Timber
Lake; Ziebach, H. R. Hammedal, Du­
pree ; Harding, H. W . Clarkson, Buf­
falo ; Walworth, C. A. Potter, Selby.
GROUP V III
1930 Meeting place to be selected
by officers: President. Walter Dickey,
Spearfish; vice president, C. O. Gorder, Deadwood; secretary-treasurer,
B. E. Colby, St. Onge.
Executive committee: Butte, T. C.
Gay, Belle Fourche; Custer, A. J.
Wigness, Custer; Fall River, T. B.
Quigley, Edgemont; Haakon, H. B.
Lovald, Midland; Jackson, L. A.
Pier, Belvidere; Meade, R. W . Doug­
las, Marcus; Lawrence, Guy Bailey,
Whitewood; Pennington, Mrs. Erma
M. Kluthe, Farmingdale.
,
GROUP IX
1930 meeting at Gregory: Presi­
dent. H. E. McKee, G regory; vice
president, W . H. Rahn, W hitten; sec­
retary-treasurer, G. R. Burkholder,
Gregory.
Executive committee: Mellette, O.
A. Hodson, Norris; Gregory, L. S.
Lillibridge, Burke; Tripp, J. E. Berens.
Changes Name
Effective recently, the Minnehaha
National bank, organized in Sioux
Falls, South Dakota, in 1885, changed

31
its name to “ The First National Bank
and Trust Company in Sioux Falls,”
it was announced by the directors of
the bank, who gave their permission
for the change in name after receiving
authority from the comptroller of cur­
rency. One reason for the change, it
has been explained, was that the name
“ Minnehaha” was apt to he confused
with the Minnehaha building, at
Ninth street and Phillips avenue.
The only changes are in name and
location, for the bank plans to move
into its new quarters in the remodeled
Smith block shortly after the change
in name takes place, and the new,
white stone building will be known as
the First National Bank building. The
stationery and printing of the bank
will continue to bear the words “ for­
merly Minnehaha.
The formal opening of the new
home of the bank was held early in
May.
Promote Calf Club
The Tri-County Bankers associa­
tion which met in Woonsocket, South
Dakota, recently, was attended by sev­
eral representing the Jerauld County
bank. L. M. Larsen was elected vicepresident of the association.
J. W. Howe of the department of
agriculture met with the association
in the interests of the dairy industry.
Through boys clubs to be formed it is
hoped to foster the greater interest in
dairying and better the dairy cattle of
the different counties. Calf clubs will
be organized in the counties of San­
born, Jerauld and Buffalo which com­
pose the association.
A carload, consisting of about fifty
high grade Holstein calves is to be
purchased, each bank being responsi­
ble for ten, and ten reliable boys are
to become members of the club in their
respective districts. Complete arrange­
ments have not yet been made but an
expert will go to Wisconsin to select
the calves and the plan in detail will
soon he announced. The Bank of
Gann Valley, Jerauld County bank,
Bank of Alpena, First National bank
of Letcher and Sanborn County bank
of Woonsocket were represented at
the meeting of the association.

that the personnel and operation of
the Security National bank would not
be changed.
The Difference
Rastus : “ 1 tells you, Sambo, I done

found out de difference between men
and de women at las’.”
Sambo : “ What— what is it”
Rastus: “ Wall, a man’ll gib two dol­
lars for a one dollar thing dat he
wants, an’ a woman’ll gib one dollar
fer a two dollar thing she don’t want.”

¿ e c u r i t y -Fi r ST X i T l O m
J Ba n k o f L o á A n g e l e s

Í

Capital, Surplus and Undivided Profits $ 5 0 ,0 0 0 ,0 0 0

ORMED by consolidation of Security Trust &

F

Savings Bank and Los Angeles-First National
Trust and Savings Bank, combining two of the
oldest and largest banks of Southern California.
The Security-First National is fully
equipped to do every kind of bank­
ing business, and has branches
extending from Fresno and San
Luis Obispo to the Imperial Valley.
J. F. SARTOR!
HENRY M. ROBINSON
Chairman o f the Board

President and Chairman o f
the Executive Committee

Joins Corporation
The Security National bank of
Sioux Falls, the largest bank in South
Dakota, has joined the Northwest
Bank corporation of Minneapolis.
The local bank becomes the 12th
member outside of Minneapolis of the
corporation, which has combined re­
sources announced as $168,000,000.
The deal . was completed by ex­
changing stock. Officials announced


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Federal Reserve Bank of St. Louis

Central Western Banker, June, 1929

32
iiiiiMiiiimiimitiiimiiiiiiniiiHiiiiMiiiiiiuiiiniiiiiiiiiiiiimiiiMiiiimiimmiiiiiiiiiiiiiiiMmtmiiiiiiiiiiiiiniiiiimiiimimmiMimiiiiiiH

üiiMiiiiiiiiiiiiiiiiiiiiiiiiitiiiiiiiiiiiiiiiiiiiiiiiiimiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiimiiiiiiiiiiiiiiiiiimiiiiiiiiiiiiiMii

Mergers
Three bank mergers were complet­
ed by the Kansas banking department
recently.
The Farmers State Bank of Brew­
ster was merged with the Brewster
State Bank. The Yates Center State
Bank was merged with the State E x­
change Bank of Yates Center, and the
West Side Union State Bank was
merged with the Exchange State Bank
of Parsons.
Pioneer Dies
Robert A. Marks, pioneer banker of
Oberlin, Kas., died recently. He set­
tled in Oberlin in 1879, and was the
city’s first banker.
County Bankers Elect
New officers of the Cherokee Count y , Kansas, Bankers’ Association,
were elected at a recent meeting. Dio
D. Dailey, Assistant Cashier, Scammon State Bank, Scammon, was elect­
ed president, Thos. O. Moeller. A s­
sistant Cashier, Galena National Bank,
Galena, was elected Vice-president

for the ensuing year, and Wm. Ham­
let, Cashier, Farmers & Merchants
Bank, Crestline, was elected perman­
ent secretary.
Meet in Whiting
Jackson County Bankers’ Associa­
tion met at Whiting, Kas., recently
for its regular quarterly meeting.
W. A. Coleman reported on the
Manhattan Banker-Farmer meeting.
Prof. Frank Blecher gave an address
on the Banker-Farmer movement.
There was a discussion on tax equali­
zation and a proposed schedule of uni­
form service charges was brought up
and discussed.
Chapter Elects
Wichita, Kansas, A.I.B. chapter
elected the following officers recently:
J. M. Fawson of the Fourth National
Bank, president; Ed Rosser of the
Wheeler, Kelly, Hagny Trust Com­
pany, vice-president; J. P. Whitaker
of the Federal Land Bank, treasurer,
and Hope1Young, of the First Nation­
al Bank, secretary.

Cfcage Rational panfc
of the City of New York

Pine Street corner of Nassau
C a p it a l........................................ $
61,000,000.00
Surplus and P ro fits................
79,937,918.04
Deposits (March 27, 1929) 1,048,009,157.21
OFFICERS
Albert H. Wiggin
Chairman of the Board
John McHugh
Chairman o f the Executive Committee

Samuel H. Miller
Carl J. Schmidlapp
Reeve Schley
Henry Ollesheimer
James T. Lee
Sherrill Smith
Alfred C. Andrews
Robert I. Barr
George E. Warren

Vice-Presidents
George D. Graves
Frank O. Roe
Harry H. Pond
Samuel S. Campbell
William E. Lake
Charles A. Sackett
Hugh N. Kirkland
James H. Gannon
William E. Purdy

Robert L. Clarkson
President

George H. Saylor
M. Hadden Howell
Joseph C. Rovensky
T?uel W. Poor
Edwin A. Lee
Leon H. Johnston
Wm. H. Moorhead
Horace F. Poor
Edward E. Watts

Vice-President and Cashier
William P. Holly
Second Vice-Presidents
Frederick W. Gehle S. Frederick Telleen
Alfred W. Hudson
Otis Everett
James L. Miller
marold L. Van Kleek
Joseph Pulvérmacher T. Arthur Pyterman
Franklin H. Gates
Ambrose E. Impey
Arthur M. Aiken
Robert J. Kiesling

Central Western Banker, June, 1929

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Federal Reserve Bank of St. Louis

Lynde Selden
Thomas B. Nichols
George S. Schaeffer
J. Sperry Kane
George A. Kinney
George J. Milne, Jr.
Frank M. Totton

Merge in Parsons
A merger at Parsons, Kansas, was
efifected recently with the West Side
Union State Bank and the Exchange
State Bank the principal figures. The
merged institution will be conducted
under the name of the Exchange
State. L. E. Goodrich, who has been
actively at the head of the West Side
bank is president of the new bank.
Howard Read, formerly cashier of the
West Side is cashier of the Exchange.
J. S. Vance, who has been vice-presi­
dent of the Exchange, remains in that
capacity. H. W . Koeneke, vice-presi­
dent of the Exchange, was forced to
retire on assuming the position of
state banking commissioner May 1.
Celebrate Anniversary
The 25th anniversary of the organ­
ization of the Farmers State Bank of
Lenexa, Kas., was celebrated recently
when a banquet was tendered the
stockholders and their families.
E.
H. Haskin, the first president of
the bank, and its cashier for the past
23 years was toastmaster and the
meeting was addressed by E. J. M c­
Creary, now assistant vice-president
of the Fidelity National Bank and
Trust Company, Kansas City, who or­
ganized the bank twenty-five years
ago.

-that's all
you need
to know/
Eppley Hotels are
known throughout
the country for hos­
pitality,
courtesy,
service. If it’s an
Eppley Hotel
“ that’s all you need
to know !”
Omaha, Neb. . . . Hotel Fontenelle
Hotel Rome
Hotel Logan, Apartment Hotel
Lincoln, Neb...............Hotel Lincoln
Hotel Capital
Norfolk, Neb............... Hotel Norfolk
Council Bluffs, la. . . . Hotel Chieftain
Marshalltown, la. . . Hotel Tallcorn
Cedar Rapids, la.........Hotel Montrose
Sioux City, la ................ Hotel Martin
Sioux Falls, S. D. . . Hotel Carpenter
Hotel Cataract
Operated by

E p p l e y H o t e l s Co m p a n y
E. C. E P P L E Y , P R E S I D E N T
E X E C U T IV E
O F FIC E S
~
O M A H A

33
passed by the recent legislature. The
bill makes examination fees charged
industrial banks by the state bank
commissioner the same as those charg­
ed other kinds of state banks.

Colorado News
Investment Consolidation
Consolidation of Boettcher, New­
ton & Co. and Boettcher & Co., two of
Denver’s leading financial firms of its
kind in the West, was announced re­
cently.
The consolidation will bring to­
gether two firms, specializing in dif­
ferent branches of the security busi­
ness and with combined operations
running into millions of dollars an­
nually.
Boettcher & Co., one of Denver’s
oldest investment houses, has dealt
largely in the underwriting and dis­
tribution of new security offerings and
has participated in many of the largest
financing projects of the Rocky Moun­
tain region.
Meet in Boulder
Boulder, Colorado, was host to ap­
proximately 200 bankers on June 1,
when Group No. 1 of the Colorado
Bankers association, comprising the
northern section of the state held
their annual convention.

J. Perry Reynolds, cashier of the
Mercantile Bank and Trust company
is president of the group and Har­
rison Gilson, assistant cashier of the
First National bank, is secretary.
Elected President
At a meeting of the board of direc­
tors of the Olathe State bank of Ola­
the, Colorado, for the purpose of
electing a president to succeed the late
T. B. Townsend, who died Feb. 13,
1929. T. B. Townsend, Jr., former
vice president, was elected president.
N. B. Callaway was elected to the
board of directors to fill the vacancy
caused by the death of Mr. Town­
send.
The present officers are: T. B.
Townsend, Jr., president; C. B. Akard, vice president; N. J. Darrow,
cashier; A. T. Hawkyard and N. B.
Callaway, directors.
Signs Bank Bill
Governor Adams of Colorado re­
cently signed Senate Bill No. 199,

Heads Denver A, I. B.
Walter C. Brinker, Jr., who was
elected president of the Denver chap­
ter of the American Institute of
Banking, recently represented t h e
chapter in an elimination public speak­
ing contest on the subject, “ The Best
Investment,” held at Salt Lake City,
Utah.
Other officers of the Denver chap­
ter of the institute are: R. C. Perkins,
Denver National bank, vice president;
J. E. Renstrom, First National bank,
secretary; L. E. McKenzie, First Na­
tional bank, financial secretary; Clare
T. Roeder, Federal Reserve bank,
treasurer, and Herman F. Feucht and
Martin W. Hector, members of the
hoard of governors.
To Liquidate
Directors of the First National
bank of Ault, Colorado, have made
arrangements« for the voluntary liquid­
ation of the bank with the cooperation

The Banker’s Confidential Market
•I A A — O n l y b a n k i n s o u t h w e s t e r n M i s s o u r i t o w n a b o u t 500
population.
Gas ,eletricity, c ity w ater, g o o d s ch ools, th ree
P r o t e s t a n t c h u r c h e s . S a l a r y $2,160.00, v e r y g o o d “ s i d e l i n e s , ”
a t t r a c t i v e e a r n i n g s o n s t o c k . R e q u i r e s $11,500.00 i n v e s t m e n t .
W H B — C a s h i e r s h i p o n l y b a n k g o o d e a s t e r n K a n s a s t o w n 600
population.
G ood territory, splen did ra tio o f dep osits to
capital and g o o d ea rn in g pow er.
P res id en t and ca sh ier b oth
a ctive, g o “ fif t y - f if t y ” on r e s p o n s ib ilitie s and in com e.
S id e
lin es e s p e c ia lly w e ll d evelop ed .
C a s h ie r ’s i n c o m e f r o m s a l ­
a r y a n d s i d e l i n e s l a s t y e a r $4,100.00. T h i s y e a r p r o m i s e s t o
be as g o o d or b etter.
G o o d b a n k e rs ca n secu re this p o s i­
t i o n t h r o u g h p u r c h a s e o f 37 s h a r e s a t $200.00 p e r s h a r e .
HBD — Splendid o p e n in g fo r t w o m en, n o rth e rn O k la h o m a
city o f ov er tw o th ou sa n d population, not overba n k ed . G ood
salary and earn in g pow er.
S to c k r e a s o n a b ly priced.
Re­
q u i r e s $35,500.00.
E B B — C o n t r o l c a r r y i n g p r e s i d e n c y o f o n l y b a n k in g o o d
s o u t h w e s t e r n I o w a t o w n o f a r o u n d 600 p e o p l e o f f e r e d f o r
a b o u t $20,000.00.
B an k sh ow s g o o d earn in g pow er.
S alary
a n d s i d e l i n e e a r n i n g s a b o u t $2,800.00 p e r y e a r .
B M B — C a s h i e r s h i p o f s m a l l b a n k , a t t r a c t i v e l y l o c a t e d in
s u b u r b o f g o o d , s m a ll city, h a v i n g all m o d e r n c o n v e n ie n c e s .
S a l a r y $200.00.
R e q u i r e s i n v e s t m e n t o f $4,500.00.
H G A— L e a d in g bank, w e s te rn M issouri co u n t y seat t o w n d e­
sires to s e c u r e c a s h ie r w h o h q s the a b ilit y n e c e s s a r y to s u c ­
c e e d p r e s i d e n t in a f e w y e a r s .
B a n k ’s deposits w ell over
h alf-m illion m ark.
R e q u i r e s i n v e s t m e n t o f $21,500.00.
T P Iï— C a s h i e r s h i p o f g o o d b a n k , m o d e r n , c o u n t y s e a t t o w n
o f m o r e t h a n 3,000 p o p u l a t i o n c a n b e h a d b y a c c e p t a b l e
b a n k e r t h r o u g h i n v e s t m e n t o f $17,500.00. S a l a r y $200.00 p e r
m onth.
K a n s a s L o c a t io n w ith splen did future.
M R A— C o n tro l o n ly bank, g ood , sm all w e s te rn M issouri
town,
offered
app roxim ately
“ in v oice
va lu e.”
U n usually
l a r g e r a t i o o f d e p o s i t s t o i n v e s t e d c a p ita l, h e n c e fine e a r n ­
i n g s a n d g o o d s a l a r i e s . C a s h i e r r e c e i v e s $200.00 s a l a r y . W e l l
d e v e lo p e d “ sid e lin e s ” a n d d iv id e n d s g r e a t l y in c r e a s e this
incom e.
R e q u i r e s i n v e s t m e n t $22,500.00.
L a r g e “ u n d iv id ed
profits” sh ou ld be distributed.
M B R — O n l y b a n k , g o o d n o r t h A r k a n s a s t o w n o f 1,000 p o p u ­
lation.
G ood sch ools and ch u rch es and con sid era b le indusFor

F u r th e r

D a ta

On

T h ese

t r ia l p a y roll.
B a n k h a s $25,000 c a p i t a l , u n u s u a l l y “ s t r o n g ”
b o a r d o f d irectors, a n d ea rn e d 20% last year.
125 t o 165
s h a r e s o f f e r e d a t $155— p r a c t i c a l l y “ i n v o i c e v a l u e . ”
Con­
s e r v a tiv e b a n k e r ca n be s u b sta n tia lly “ fin a n ce d ” on this
purchase.
W P A — $11,250 s e c u r e s 75 s h a r e s o u t o f 350, c o n s e r v a t i v e l y
m a n a g e d b a n k in W e s t e r n M i s s o u r i t o w n o f 700 t o 800
p op ulation.
C a r r i e s m a n a g i n g p o s i t i o n a t s a l a r y o f $1,800.
B a n k ca p a b le o f e a r n in g m a te ria lly m ore than the 1 2 ^ %
d i v i d e n d d e c l a r e d i n 1928. P r i c e a b o u t “ b o o k v a l u e . ”
W E D — 85 t o 120 s h a r e s o f t h e s t o c k o f o n l y b a n k , e a s t e r n
O k l a h o m a t o w n o f a r o u n d 1,000 p o p u l a t i o n o f f e r e d a t $125
— s u b s t a n t i a l l y b o o k v a l u e . C a r r i e s s a l a r y o f $2,400 p e r
year, t o g e t h e r w it h w e ll d e v e lo p e d “ side lin e s.”
H S A — M a n a g e m e n t o f o n ly bank, sm all g o o d w e s te rn M is ­
s ou ri t o w n ca r r ie d b y s to c k o ffered a b o u t b o o k value. S ala ry
$1,800. R e q u i r e s i n v e s t m e n t $10,000.00, w h i c h c o u l d b e r e ­
duced quite m a te ria lly th ro u g h d istrib u tion o f la rg e “ u n ­
d iv id ed p rofits.”
H B I ! — $13,000.00 b u y s 61 o f t h e 100 s h a r e s o f g o o d c e n t r a l
K a n s a s b a n k in o n e b a n k t o w n , t o g e t h e r w i t h t h e c a s h i e r ’s
r e s i d e n t , w h i c h is v a l u e d a t $2.500.00.
S tock priced abou t
in v o ic e value.
B a n k has v e r y g o o d e a rn in g history. S alary
$1,800.00.
L a r g e c o m m is s io n s f r o m “ sid e lin e s.”
C B A — A n investm en t of on ly seven ty-seven hundred d ol­
l a r s w i l l p u t y o u i n c a s h i e r ’ s p o s i t i o n in o n l y b a n k in
w e s t e r n M i s s o u r i t o w n o f a b o u t 250 p o p u l a t i o n .
S alary and
c o m m i s s i o n s a b o u t $1,800.00.
V ery g ood earning power.
K O B — $11,000.00 s e c u r e s c o n t r o l o f o n l y b a n k , s m a l l t o w n ,
east cen tral K an sas.
S a l a r y , $1,800.00, c o m m i s s i o n s f r o m
s i d e l i n e s a b o u t $600.
E M A — O n ly b an k , g o o d
tow n
in s o u t h e a s t e r n
M issouri.
P o p u l a t i o n w e l l o v e r 1,500.
D e p o s i t s m o r e t h a n $180,000.00.
N ot o v er-ca p ita liz ed . P o s itio n o f cashier, c a r r y in g m a n a g e ­
m en t o f the ban k, m a y be had b y a c c e p t a b le b a n k e r th r o u g h
p u r c h a s e o f 15 t o 50 s h a r e s a t $180— s u b s t a n t i a l l y b o o k v a l u e .
L C B — 56 o f t h e 150 s h a r e s o f s t o c k s p l e n d i d b a n k , e a s t
c e n t r a l K a n s a s , c a r r y i n g c a s h i e r s h i p a t $1,920 o f f e r e d a t
$300.00 p e r s h a r e — l i t t l e m o r e t h a n i n v o i c e v a l u e .
Very
h ig h dividend record.
G ood co m m ission s.
Or

O th er

O ffe r in g s,

A d d re s s

BANKERS BROKERAGE COMPANY
(Successor to the C. C. Jones Investment Company)

919 Baltimore Avenue


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

Kansas City, Missouri
Central Western Banker, June, 1929

34
of the Farmers National bank of
Ault.
All depositors o f the First National
of Ault are fully protected in the
agreement. Deposits of the First Na­
tional of Ault will be payable at the
Farmers National. Directors of the
First National are commending the
Farmers National to their patrons so
it is probable that most of the deposits
of the First National will remain as
deposits of the Farmers National.
Clearings Gain
Bank clearings in Pueblo, Colorado,
recently, gained more than $555,000
over the figures for the corresponding
week in 1928, according to figures
compiled by R. G. Dun Co., national
finance reporters. The total clearings
were $1,962,322.59, and for the same
period last year the total was $1,410,/11.91.
Celebrates
The First Industrial Bank of Den­
ver recently celebrated its 16th Anni­
versary. The institution was opened in
Denver on May 14, 1913, under the
name of the Economic Loan and In­
vestment Co. It was the 11th Morris
Plan bank in the Lhrited States and
the first west of St. Louis.
Since its organization, the bank has
made approximately 57,000 loans, in
the amount of $10,819,343.
O f the original board of directors
E. S. Kassler, Sr., H. T. Lamey, W.
H. Ivistler and Frank L. Woodward
are still serving. Other directors are
C. A. Bowman, C. A. Kendrick, A. E.

line with the policy of the American
National Bank to do everything in
their power for the better accommoda­
tions of the patrons.

Liverman, W . R. McFarland, H. M.
Stoll, Dr. George P. Shumacker, E.
S. Kassler, Jr., and Carl W. Sorenson.
County Bankers Meet

To Erect Building

At the meeting of the Delta County
Bankers’ association, held in Hotch­
kiss, Colorado, M. H. Crissman gave
an interpretation of one of Chic Sales'
humorous sketches which delighted
the audience.
Senator J. E. Hillman and Repres­
entative H. B. Fetzz gave interesting
reviews of the session of the legisla­
ture just closed.
T h e association elected officers,
Charles Myers of the First National
Bank of Hotchkiss being chosen presi­
dent; Floyd Hammond, Fruit E x­
change State Bank, Paonia, vice pres­
ident; H. H. Addams, North Fork
State Bank, Hotchkiss, secretary, and
Charles Parker, Colorado Bank and
Trust company, Delta, treasurer. The
old executive board, including M. H.
Crissman and Walt Thomas, holds
over.

The International Trust Co. of
Denver recently announced plans for
immediate construction of a two-story
building, adjoining its present bank­
ing quarters, to care for growingneeds of its investment and securities
department.
The new building will front on 17th
street and will extend from the bank’s
main building, on the corner of 17th
and California streets, to the alley be­
tween California and Welton streets.
It will take the place of an older
building on the same site, part of
which is now being utilized by the
bond department.
The new structure will harmonize
in architectural style with the main
bank building and will be equipped
with modern facilities for customers
and employes. Cost of the project, it
is understood, will be approximately
$ 200,000.

Changes Departments
Increasing business has necessitated
certain department changes at the
American National Bank, of Denver,
according to Frank Kirchof, presi­
dent.
The trust department has been mov­
ed to the balcony, insuring more pri­
vacy. Statements will now be given at
Window No. 1, and the loan depart­
ment has been moved to Window No.

BERT C. R A N Z has been e1ected
president of the Farmers and Mer­
chants bank of Benson, Neb., succeed­
ing Dr. J. M. F. Heumann. Mr. Ranz
will be the active directing head of
the bank. He takes the place on the
board of directors of P. W. Murohv,
vice president, who resigned. H. G.
Hoermer was elected vice president
of the bank and Arthur O. Nelson,
cashier.

22.
These changes have been made in

AUSTRALIA

BANK OF N EW SO U T H W ALES
E S T A B L IS H E D

1817

( W i t h w h ic h is a m a lg a m a te d T H E W E S T E R N A U S T R A L I A N B A N K
P A I D -U P C A P I T A L ______________________________________________________________ 8 3 7,500,000
R E S E R V E F U N D _________________________________________________________________
29,500,000
R E S E R V E L I A B I L I T Y O F P R O P R I E T O R S -----------------------------------------------3 7,500,000
$ 104,500,000

Aggregate Assets 30th Septermber, 1928, $444,912,925
A G E N T S — F IR S T

N A T IO N A L

RAN K , OM AHA, N EBR ASK A

HEAD OFFICE, GEORGE ST., SYDNEY

GENERAL

M ANAGER,

ALFRED

CH ARLES

D A V ID S O N

LONDON OFFICE, 29 THREADNEEDLE ST., E. C. 2

548 B r a n c h e s an d A g e n c ie s in all A u s tr a lia n S ta te s , F e d e r a l T e r r ito r y , N e w Z e a la n d , F iji , P a p u a , M a n d a te d T e rrito ry
N ew G u in e a and L o n d o n . T h e B a n k C o lle c ts f o r an d U n d e r ta k e s th e A g e n c y o f O th er B a n k s , an d t r a n s ­
a c ts e v e ry d e sc rip tio n o f A u s tr a lia n B a n k in g ' B u sin e ss

THE CENTRAL WESTERN BANKER OF OMAHA,

P

u b l is h e d

by

D

e

P

uy

P

u b l is h in g

C

ol

o m pan y

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

D

eP u y ,

Publisher

G erald

A . S n i d e r , Associate Publisher

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

Central Western Banker, June, 1929

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

R. W .

M

oorhead,

Editor

H. H. H a y n e s , Associate Editor

Frank P. Syms, 25 West 45th Street, New York, Vice-President

Guaranty Trust Company
of New York
a merger o f
National Bank of Commerce

Guaranty Trust Company

in New York

of New York

Organized i S j ç

Organized 18 6 4

Capital, Surplus and Undivided Profits,
more than $184,000,000

he me r g e r

o f these institutions on M a y 6 , 1 9 2 9 , is a

log ica l fusing o f resources, facilities and orga n iza tion .
T h e increased capital funds enable us to m eet the c o n ­
stantly exp a n d in g requirem ents o f m od ern business.
O ur enlarged Board o f D irectors

is representative in an e x c e p ­

tional d egree o f the n a tion ’ s industrial, co m m e rcia l and financial
interests.
T h e outstanding result o f the m erg er w ill be to provid e fa­
cilities o f even greater advantage to our clien tele, in every phase
of

hanking,

trust and

investm ent service,

than w ere available

th rou gh the m e rg in g banks operatin g separately.

M AIN OFFICE: 140 Broadway

Fifth Avenue Office

M urray Hill Office

M adison Avenue Office

Fifth Ave. and 44th St.

269 Madison Avenue

Madison Ave.and 60th St.

LONDON


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Federal Reserve Bank of St. Louis

PARIS

BRUSSELS

LIVERPOOL

HAVRE

ANTWERP

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

WEhave every facility

for rendering you
exceptional service on
your Omaha items.

The
Omaha
National

Bank