Full text of Central Western Banker : June 1935, Volume 30, No. 6
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https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis CENTRAL WESTERN O 7V \ T 1 7 I 7 D i J r x l N x V J Z /iv Omaha Nebraska Bankers See Prosperous Year A head Page 3 Group Meeting Snapshots Pages 5 and 7 O u r Service Charge Schedule Page 6 A b o u t Men You Know in Omaha Page 8 June 1935 S U N D A Y E V E N IN G Miles from T H U R S D A Y E V E N IN G 5 :45— W en d ell Hall. 6 :0 0 — R u d y V a lle e ’s fam ous V a 5:00— M a jo r B ow es and one full New York City hour o f the best A m ateurs on the air. BIG 7 :30— H aenschen C oncert O rch es 8 :0 0 — T h e G ibson F am ily with C onrad Thibault, Jack and L oretta Entertain You Boat Clemens, and D on with M olasses L anny ’n January and all-star cast. 8 :0 0 — Paul W hitem an, L o u H oltz and tra with Frank M unn. N A M E S 7 :00— S h ow R oss, 7 :00— A n d y Sannella’s Orchestra. Ye t B r o a d w a y ’s riety H ou r. num erous other big names. F R ID A Y E V E N IN G 6 :0 0 — Jessica D ragonette. V oorh ees Orchestra. 7 :30— P ic and Pat. M O N D A Y E V E N IN G Every Day 8 :0 0 — T he First N ighters. 6 :00— R ich ard H im b er’ s Orchestra. 8 :3 0 — W H O C oncert O rchestra. 6 :30— Gladys S w arthout with W il liam D a ly ’s Sym phonic O r chestra. 7 :00— H a rry . . . if you were to spend a week 6 :30— Lennie H o rlick ’s O rchestra with Guest Artist. 7 :30— O tto in New York City . . . at you to see, at the York theaters, ALL stars you hear can New the these stage perform ances would cost you ap proximately $50 for the week . . . Fred many B. K ennedy and the R a dio City Party. 7 :3 0 — A1 Jolson with all-star cast. 8 :00— L ullaby L ad y with M organ 8 :3 0 — Io w a Barn D ance F rolic. L . E astm an’s Orchestra. 8 :30— M a x Baer as L u ck y Smith. T U E S D A Y E V E N IN G 6 :0 0 — L eo R eism an ’s ★ ★ ★ . . . invite R a d io ’s Stars to you r O rchestra with Phil Duey, baritone. 6 :3 0 — W a y n e K in g and Orchestra. hom e just by turning you r dial to W H O , 1000 K ilocycles, and leaving it there. 7 :00— Ben Bernie and the Lads. 7 :30— E d take with over W H O in one week, tickets to H ayton fam ous singing stars. 7 :00— John H a rb a ch ’s “ M u sic the H a yd n s.” . . . and if it were possible for S A T U R D A Y E V E N IN G Allen, for ex ample. To see him on a New W ynn with E ddie Duchin. 8 :00— Beauty B o x Theater o f the York stage would cost you A ir — a one hour show o f from $3.50 to $5. Yet by M usical Com edies and L ight listening Operas. to WHO on Wednesday nights you can enjoy a full hour with Fred Allen, without spending one penny for tickets . . . W E D N E S D A Y E V E N IN G 6 :0 0 — O n e M a n ’s Fam ily— popular dram atic sketch. 6 :3 0 — W a yn e K in g and Orchestra. here are typical examples of Big Names you can hear over W H O nightly. I B 7 :0 0 — F red A lle n ’s T ow n H all T onight. 8 :00— G uy L om bard o Orchestra. H e r e a r e t h e w i n n e r s in t h e r e c e n t W H O l e t t e r - w r i t i n g c o n t e s t : F i r s t P r i z e , $ 2 5 .0 0 , t o .T. M . E a s t o n , H i g h l a n d P a r k , 111.; S e c o n d P r i z e , $ 1 5 .0 0 , t o G u y W . C o o k e , C h i c a g o , 111.; T h i r d P r iz e , $ 5 , t o E . L . G r a u e l , R o c h e s t e r , ]V. V . ; a n d F i f t h t h r o u g h E i g h t h P r i z e s , B u r t o n E . V a u g h a n , N e w Y o r k C i t y ; K . L . S t e w a r t , M a r q u e t t e , N e b r .; H a r r i e t B u l l o c k , C le a r F a k e , I o w a ; G e o r g e B r o w n , D e t r o i t , M i c h ., a n d F a n n i e J e a n G r a y , N e w Y o r k C it y . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Central Western Banker, June, 1935 3 C E N 1 E A L W tT T E C N E A N E E E 410 A R T H U R B U IL D IN G OMAHA C l if f o r d D eP u y , Publisher R . W. M o o rh ea d , Associate Publisher H . H . H a y n e s , Editor F r a n k S. L e w i s , 511 Essex Bldg., Minneapolis F r a n k P . S y m s , Vice-President, 330 West 42n d Street, N ew York Subscription, 25 cents per copy; $2.00 per year. Entered as second-class matter at the Omaha postoffice. V olume 30 JUNE, 19 3 5 N umber 6 Nebraska Bankers See Prosperous Year Ahead Optimism Prevails at Group Meetings of Nebraska Bankers Association H E 1935 Annual Group M eet ings of the Nebraska Bankers as sociation, held the week of M ay 20th, were highly successful and well attended. In some cases the attendance was kept down to a certain extent by bad roads due to the heavy rains. T However, the heavy rainfall of the past months throughout the entire Cornhusker State was responsible for the great optimism expressed at every meet ing. Never in the history of Nebraska has there been such promise of bounti ful crops. Bankers who attended the M ay groups meetings were unanimous in their predictions that the entire state is facing a real year o f prosperity. By RALPH W. MOORHEAD Associate Publisher The Central Western Banker bank legislation. M r. M cC lain empha sized the desire of the State department to cooperate with all state banks. M r. Rahel spoke on “ W h at Shall W e D o W ith O u r Surplus Funds?” giving banks the long range view o f the investment In the resolutions adopted at Alliance, this group went on record as favoring the elimination o f direct competition of postal savings with banking. T h e reso lutions also urged immediate adoption of a uniform schedule of service charges by all banks in the group and favored postponement of the passage of T itle N o. 2 of the 1935 Banking Act. The A llian ce M eeting1 T h e group itinerary opened at A l liance, M onday, M a y 20th, where rainy weather cut the attendance somewhat. T h e G roup Six meeting was presided over by J. V . W ebster, cashier of the First National bank of Chadron. F ol lowing the address of welcome by City M anager Earl M allory and a response by J. A . Stockwell, cashier, First N a tional bank, Bayard, Nebraska, ad dresses were made by President O tto Kotouc of the Nebraska association; J. F. M cC lain, Chief Examiner o f the Nebraska Banking department; C liff Rahel of W achob-Bender company, O m ah a; J. J. Durkin, of the Colorado National bank, D enver; and Clyde C. Neumann, cashier Farmers & Merchants National bank of Oakland, Nebraska. M r. Kotouc spoke on “ Recent Banking Activities,” dwelling particularly on https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis personally prepared charts for illustra tive purposes. T h e meeting concluded with a banquet at the Elks club at which Perry B. Hendricks, vice president of the United States National bank of Omaha, was toastmaster and E. N. Van Horne, president of the Continental N a tional bank of Lincoln, was the princi pal speaker on “ T h e M erry W h irl of Banking.” N ew Group Officers o f Group 6 are: President, H . H . Ostenberg, president of the Scottsbluff National bank; Vice President, James Stockwell, cashier, First National bank of Bayard, and Sec retary, T . E. Neeley, cashier of the Gering National bank, Gering, Nebras ka. T h e 1936 G roup meeting of Group 6 will be held at Scottsbluff. The O gallala M eeting O tto K otou c President, Nebraska Bankers Association problems. M r. Durkin discussed “ C or respondent Bank Relations,” and M r. Neumann gave a most illuminating talk on “ Economic Changes and Country Banking,” using a splendid collection of T h e Ogallala meeting of Group Sev en was well attended and presided over by C. L. Countryman, president of the Citizens bank of Ogallala, with G . D . Adams, president o f the Bank of Brule as acting secretary. A . C. Peterson, cashier of the First State bank of Lodge Pole, Nebraska, was unable to be pres ent. Speakers at Ogallala included R o land V . Rodman, vice president of the 4 Central Western Banker, June, 1935 American National bank of Kimball, Nebraska; M . W eil, president of the National Bank of Commerce, Lincoln, Nebraska, who talked on banking con ditions, and Messrs. Kotouc, M cC lain, Rahel and Neumann. A t the evening banquet, M . M . Maupin, attorney in Ogallala, and vice president of the Cit izens bank of Ogallala, presided as toast master, with the principal speaker for the evening, Fred W righ t, assistant gen eral counsel for the Federal Land bank of Omaha. Group Seven decided to merge with G roup Six. In the resolu tions at Ogallala, opposition was regis tered to T itle N o. 2 of the 1935 Bank ing A ct and the Group went on record favoring withdrawal of the United States from the Postal Savings Banking business. The O rd M eeting T h e Group Five meeting at O rd had a most auspicious beginning with a com plimentary breakfast served to all mem bers of the special group train. It was presided over by C. J. Mortensen, presi dent of the Group, who announced that since O rd had received more rainfall so far this year than during all of 1934, everyone was in the best of spirits. Ray E. Ridge, vice president of the Omaha National bank, responded to the address of welcome, and Stanley M aly, vice president, First National bank, Lincoln, was one of the principal speakers on “ Pending Federal Bank Legislation and Government Financing,” discussing in particular the Frazier-Lemke bill. Other speakers included much the same group as at Alliance and Ogallala. T h e evening banquet at the high school auditorium was most enjoyable with a very large crowd in attendance. A special musical program was presented by the O rd Civic Orchestra and A m er ican Legion Chorus. Perry B. H en dricks presided as toastmaster, with E. N. Van Horne as the principal speaker. N ew officers elected by Group Five include C. E. Clark, cashier, the Ra venna Bank of Ravenna; vice president, H . S. Kinsey, vice president, Arcadia State bank of A rcadia; and secretary, W . S. Paul, vice president of the St. Paul National bank, St. Paul, Nebraska. T h e O rd resolutions opposed compul sory membership in the Federal Reserve system and expressed opposition on the whole T itle N o. 2 of the 1935 Banking Act. T h e group endorsed the immedi ate approval o f the application o f the North and M iddle Loup River projects, now pending at W ashington, D . C. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis These projects involve both irrigation and rural electrification. T h e next Group Five meeting will probably be held at Broken Bow. The H old rege M eeting A large attendance was registered at Holdrege on Thursday, M ay 23rd, with A. Thum an presiding over the Group Four meeting. T h e principal speakers included Messrs. Kotouc, M cC lain, Neumann and others who appeared on previous group programs and the eve ning banquet at the Hotel Vale was well attended. Perry B. Hendricks presided as toastmaster with E. N . Van Horne the speaker of the evening. Group Four bankers in their resolu tions opposed compulsory membership of state banks in the Federal Reserve system, recommended the efforts of the A .B .A . to lower postal savings interest rates and the withdrawal of the United States from the banking business. T hey opposed the entire T itle N o. 2 o f the new Banking A ct and recommended the adoption of a uniform schedule of serv ice charges. T h e group chose M cC ook as their 1936 meeting place. N ew Group Four officers include: President, Arthur Jen sen, president, Nebraska National bank of M in d e n ; vice president, I. G . Danly, president of the Funk State bank of Funk, Nebraska; secretary, A . C. Eisenhart, president, the Culbertson bank of Culbertson. The L in coln M eeting T he meeting of Group One at L in coln was naturally the largest meeting of the week. It was held at the Cornhusker Hotel and a most enjoyable buf fet luncheon took place at noon with members of the group as guests of the Lincoln bankers. Group One bankers also approved the efforts of the A .B .A . to force withdraw al of the United States Government from the Postal Savings Banking busi ness. T heir resolutions opposed any change in the manner of appointment of members to the Federal Reserve Board, opposing in particular any domination or control of the board by political pow ers. T h ey went on record against forc ing state banks to become members of the Federal Reserve system. N ew officers elected at Lincoln in clude: president, Elmer Bradley, cash ier, the Shickley State bank of Shickley; vice president, Julian Sevenson, cashier, the Farmers bank of Nebraska C ity; secretary, R. W . Hein, assistant cashier of the Dawson bank at Dawson. N o meeting place for next year was decided upon. A feature of this year’s Nebraska group meetings was the large delegation on the splendidly equipped special group meeting train. T h e equipment included two fine pullmans and club car. James Sharpe, Omaha, representing the C.B. & Q . made the entire trip, and Louis M eder of Omaha, representing the Union Pacific was with the special train for two days. Arrangements were per fect, assisted by the guiding hand of both Perry Hendricks and Secretary Billy Hughes. T h e group meeting passenger list was as fo llo w s: O tto Kotouc, president Nebraska Bankers association and president Home State bank, Humboldt, Nebraska; J. M . Sorensen, vice president, Stephens N a tional bank, Frem ont; C. C. Neumann, cashier Farmers and Merchants Nation al bank, O akland; Ralph M oorhead, as sociate publisher, Northwestern Banker, Des M oin es; Geo. W . W oods, vice president, First National bank, Council B luffs; J. F. M cL ain, chief examiner, Department of Banking; Geo. W . Holmes, president, First National bank, L in co ln ; Stanley M aly, vice pres ident, First National bank, L in coln ; M . W eil, president, National Bank of C om merce, L in coln ; E. N . Van Horne, pres ident, Continental National bank, L in coln ; W m . B. Hughes, secretary, N e braska Bankers association, O m aha; Geo. A . Gregory, cashier, Federal Re serve bank, Om aha; Harold James, FedLand bank, O m aha; J. A . Changstrom, vice president, Omaha National bank, Om aha; C. D . Saunders, vice president, First National bank, O m aha; P. B. Hendricks, vice president, United States National bank, O m aha; E. M oser, vice president, United State National bank, O m aha; M . F. Barlow, assistant cash ier, United States National bank, O m a ha; R. H . Kroeger, cashier, Live Stock National bank, O m aha; Jas. B. Owen, president, Stock Yards National bank; J. F. Coad, president, Packers National bank, O m aha; Cedric Potter, Burns Potter company, O m aha; Carl M . Cun ningham of the Burns Potter company; A rthur Loomis, secretary, Kirkpatrick, Pettis and L oom is; L. M . M cCague, T he National Company, Om aha; Cliff Rahel, W achob-Bender & Co., Om aha; Louis M eder, Union Pacific System, O m aha; James Sharpe, Chicago, Bur lington Sc Quincy Railroad, O m aha; Homer H . Peterson, sales manager, Printed States Check Book Co., Om aha; (Continued on Page 13) Central Western Banker, June, 1935 5 A t the N ebraska G ro u p M eetings Snapped at the N ebraska G roup M eetings. A bove, le ft to rig h t: (1 ) G eorge W - H olm es, president, F irst N ational B ank, L in co ln ; C. D. Saunders, v ice president. F irst N ational Bank, Omaha; M. F. B arlow , assistant cashier, U. S. N ation al Bank, Omaha. (2 ) F re d W righ t, assistant general counsel, F ed era l Land B an k o f O m aha; H arold Jam es, F ederal Land B a n k o f Omaha. (3 ) A. Thum an, president, State Bank o f T renton, N eb r.; C. A. P h illips, cashier, C am bridge State Bank, Cam bridge, N ebr.; J. F . M cClain, ch ief exam iner, N ebraska D epartm ent o f B anking. (4 ) A. L ’H eureux, president, F arm ers State Bank, Cam pbell, N ebr.; P. B. H endricks, v ice president, U, S. National B ank, Omaha. (5 ) E. M oser, v ice president, TJ. S. N ational B ank, O m aha; R . H. K roeg er, cashier, L ive Stock N ational Bank, O m aha; and H. H. Byers, v ice president, Charles E . W a l ters Co., Omaha, (6 ) L. M. M cCague, T h e N ational Co., Om aha; J. F. Coad, president. Packers N ational Bank, O m aha; Cliff R ahel, W a ch ob-B en d er & Co., Omaha. (7 ) Stanley M aly, vice president, The F irst N ational B ank, L in coln ; C. J. M ortensen, v ico president, th e N ebraska State Bank, O rd; W . T. Thom pson, cashier, F irst National Bank, Cozad, Nebr., and his son, P au l Thom pson. (S ) J. A. G hangstrom , v ice president, Omaha National Bank, O m aha; Chester Dudley, B lythe & Co., Chi ca g o ; C edric P otter, and Carl M. Cunningham , both o f Burns, P otter & Co. (9 ) Jam es Sharpe, C. B. & Q. R , R . C o.; L. M. M cCague, N ational Co. o f O m aha; C. D. Saunders, v ice president, First National Bank, Omaha. (1 0 ) J. M. Sorensen, vice president, Stephens National B ank, F rem on t; C. C. Neumann, cashier, F arm ers & M erchants N ational Bank, Oakland, Nebr. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 6 Central Western Banker, June, 193 d Our Servi ce Charge Schedule N E O F T H E accomplishments during the past year has been the adoption of a uniform schedule of service charges by fourteen of the banks in the northern part of the terri tory, including our bank at Chadron and the Blackpipe State bank at Martin, South Dakota. I believe the schedule adopted is fair— fair to our banks and fair to our patrons. N o bank can be unfair to either its patrons or itself without being unfair to both, and coun try bankers in particular should keep this in mind. O u r schedule may not be perfect, and it may not meet with the exact desires of each and every inter ested bank, but it is a step in the right direction. It may be improved upon, and altered as time and experience de mand, so that we shall always have a fair and uniform schedule in effect. O It is not the easiest thing in the world to put a uniform schedule of service charges together, because no two banks will have the same idea as to what the charges for all of the items shall be. But, if the proposition is approached in an attitude of liberal cooperation, a spir it of give and take, it can be done— it has been done. Although it may be dif ficult to put a uniform schedule of charges together, experience has proven that it is more difficult to maintain a schedule in effect after it has been adopt ed. T h e underlying trouble has been due, principally, to three things: First, exceptions and exemptions, which if applied to the m ajor items of charge, proceed immediately to tear a schedule to pieces. Second, lack of uniform interpreta tion and application of the different charges by the interested banks. I be lieve that 99 per cent of the initial vio lations of a service charge agreement has been due, not to deliberate intent on the part of the bank, but through inter preting and applying the charges in a manner different to what the other banks were doing. T hird, our readiness to accept as true, without being proven, “ reports” of how our competitors were violating their agreements. W e believe that we have safeguarded our schedule against the above sources of trouble in the follow ing manner, First, by practically eliminating ex https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis By J. V. WEBSTER President of Group Six Nebraska Bankers Association Address before the meeting of Group Six on M ay 2 0 , at A ll iance captions and exemptions from the sched ule. Second, by pretty thoroughly agree ing in advance as to interpretation and application of the different charges. Third, by follow ing the suggestion of membership in the Nebraska Clearing House association, which M r. Hughes has been so patiently recommending dur ing the past year. In so doing we be lieve we w ill take away the direct con tact of competing banks in discussions which may occur relative to violations of our agreements. If the banks will only conscientiously live up to their agreements, we shall avoid the pitfalls that have destroyed so many other service charge agreements, and our schedule will stand the test that is being put upon it. I realize that any bank which adopts new service charges, does so with a cer tain uneasiness as to how the charge will be accepted by their patrons. I can sym pathize with these banks because I know just how they feel. T o these banks I say— if the schedule of charges is fair, they need have no fear but that it will be accepted by their patrons with a greater respect for the value of the serv ice rendered, and without justified com plaint. One of the things which must be avoided by the banks in discussing these charges with their patrons, is an attitude that tends in any way to be apologetic, because no bank need apolo gize to a customer for making a reason able charge for rendering a valuable service. It is a business proposition, and bank patrons will have a greater respect for the value o f services rendered by banks if they pay for this service than if they received the service without charge— that is human nature. Banks might just as well realize now, as later, that changing conditions, which are becoming more and more apparent, are going to drop the yield level of bank investments. T h e yield level has al ready dropped, and it is going to drop still further, so that banks in order to offset the reduction in income from bank investments w ill be obliged to supple ment this loss of income through direct charges for services rendered. O ur mer chandise, intangible though it is, must be sold along sound merchandising lines. T h e result will be adequate earning ac counts that will insure a comfortable business position for banks, which will enable them to conveniently meet all other expenses, with a reasonable rnr'gin of profit for their stockholders. In the near future I hope to see a uniform schedule of service charges in effect throughout Group Six, because I believe this is one thing that should be accom plished by the banks at the earliest possi ble date. Another matter I would like to call to your attention is the apparent and ever-increasing competition by the dif ferent government agencies for business which in the past has belonged to our banks. I refer to the Postal Savings Sys tem which competes for our deposits and to the several governmental agencies which compete for our loans. So long as this competition is fair, gentlemen, we can “ take it,” and we can meet it with sound merchandising methods. But, if this competition is unfair— if it has not already become unfair through the efforts of overly ambitious directors of some of these governmental agencies — that is entirely different, and the most vigorous protest by the banks will be justified and should be recognized by government officials in the highest ad ministrative positions. Family Party Concerning activities relative to the convention of the American Institute of Banking on June 10-14, in Omaha, the United States National bank is holding a “ family party” on M onday, June 10th. Convention visitors who are identified with Bancorporation banks are invited and the dinner will be held at Hotel Paxton. There are to be no speakers or other formalities in connection with the entertainment. Central Western B anker, June, 1935 7 A t the N ebraska G ro u p M eetings Snapped at the N ebraska G roup M eetings. A bove, le ft to rig h t: (1 ) Jam es B. Owen, president, Stock Y ards N ational Bank, O m aha; R a y R . R idge, v ice president, Om aha N ational Bank, Omaha. (2 ) C. L. Countrym an, president, Citizens Bank, O gallala, N e b r.; G. D. Adam s, president, B ank o f B rule, Nebr. (3 ) K . G. Y eutter, v ice president. P ion eer Bank, Eustis, N ebr.; R . C. Johnson, assistant vice president, Continental N ational Bank, L in coln. (4 ) H. B. Olson, cashier, L isco State Bank, Lisco, N ebr.; M. W eil, president, N ational B ank o f Com m erce, L in coln ; F . L. F errell, cashier, N ebraska State Bank o f O shkosh; and C. L. C ountrym an, president, Citizens B ank o f O gallala, Nebr. (5 ) E a rl B auer, assistant cashier, C om m erce Trust Co., K ansas City, M o.; A. J. K oellin g, president, City N ational Bank, H astings, Nebr. (6 ) A rth u r L oom is, secretary, K irkpatrick, P ettis and L oom is, O m aha; O tto K otou c, president, H om e State B ank, H u m boldt, Nebr., and president the N ebraska B ank ers A ssociation ; G eorge A. G regory, cashier. F ed eral R eserve Bank, Omaha. (7 ) “ The T hree M usketeers” — G roup train porters: G eorge A lth ouse, B ud Ray, and Ed H older. (8 ) L ou is M eder, Union P acific R . R . C o.; W illia m B. H ughes, secretary, N ebraska B ankers A ssociation ; P. B . H endricks, v ice president, II. S. N ational Bank, Omaha. (9 ) C. L. C ooper, president, F arm ers State Bank, W allace, N ebr.; M. W eil, president, National B ank o f C om m erce, L in coln ; M. D. K eller, F arm ers Na tional Bank, G rant, Nebr. (1 0 ) W . S. P aul, vice president, St. Paul National Bank, St. Paul, N ebr.; A. F . D wehus, president, B ank o f D annebrog, N ebr.; J. F . M cLain, ch ief exam iner, Nebraska D epartm ent o f B a n k in g; H om er H. Peterson , sales m an ager, the U. S. Check B o o k Co. o f Omaha. (1 1 ) G eorge W. W oods, v ice president, F irst N ational Bank, C ouncil B lu ffs; H u go Eym ann, O ga lla la; E . N. Van H o m e , president, Continental N ational Bank, L in coln ; M. D. K eller, president, F arm ers Na tional Bank, Grant, Nebr. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Central Western Bankerj June, 193D About Men You Know in O maha O H N A . C H A N G S T R O M , vice president of the Omaha National bank, is chairman of the Omaha Chamber of Commerce good will com mittee, which sponsored a five-day trip by Omaha business men to central and western Nebraska, eastern Colorado, the Casper district of W yom ing, and the Black Hills territory, M ay 13-17. "I he trip, longest undertaken in four years, was made by special train. R. H . Kroeger of the Live Stock National bank of South Omaha, J. F. M cD erm ott of the First National bank of Omaha, and Perry B. Hendricks of the United States National bank of Omaha are others who serve permanently on the good w ill com mittee, which fosters a better relation ship with Omaha’s territory. Omaha bankers who made the tour included Fred W . Thom as of the First National, H ow ard O . W ilson of the Live Stock National, M r. Changstrom, and Cleo J. Flowers of the Omaha N a tion, and H arry Rogers of the Li. S. National. F. M . Lepinski of the G en eral Securities company, also, was aboard J the train. 'T 'he U i i i n it e d St a t e s N a t io n a l bank building in Omaha was a buffer the other day for a runaway car which jarred loose from its parking place near Omaha’s busiest intersection, Sixteenth and Farnam. T h e car came to a stop at the corner of the bank after narrow ly missing 25 persons, mostly women shoppers. A policeman had slowed down the car by grabbing a fender as it neared the crowd. T h e women screamed and dashed to safety. A newsstand on the corner was wrecked. R. J. Gaupel of St. Louis, owner of the runaway car, was on the fourth floor of the First N a tional bank building, across the street, when the car broke from its moorings. i i i \ J. “ J a c k ” R hod es of the Omaha * National bank has served as vice president and chairman of the board of directors of the Omaha Junior Chamber of Commerce during the past year. i i i T ames T . W of the Omaha in** vestment firm of W achob & Bender has returned from an extended vacation achob https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis trip to Pago-Pago, N ew Zealand, and Australia. Australian newspapers devoted whole pages to news of hockey and horse races, but he looked in vain, he said, for any news from the United States. T h e peo ple o f Australia, he added, seem to have forgotten there was a depression. i i i ' J ' h e L ive St o c k N a t io n a l bank of South Omaha has had an unbroken dividend record during the entire de pression period, according to Alvin E. Johnson, president. Statement of the bank show it has more than doubled its deposits during the past year. i i i a l l of the Bank of Florence, one of Nebraska’s oldest banking institutions located in one of Om aha’s northern subdivisions, was fet ed recently by the Douglas-Sarpy-Washington County Bankers association be cause of his recent marriage to Miss Charlotte Smith, comely Omaha junior leaguer. T h e Halls took a honeymoon trip to the South, played golf at H ot Springs and N ew Orleans. P ^ o bert “ B o b ” H i i i N. R u t t e r , Omaha mana ger of the securities and brokerage firm of W inthrop, M itchell & Co., has returned to his office after an illness of ten weeks, “ feeling fine and batting .102 per cent,” he said. H e spent a week of his convalescence at Excelsior Springs, Missouri. T hom as i i i g R . K i r k p a t r i c k , president of the Omaha investment firm o f Kirkpatrick-Pettis-Loomis, is reported con valescing, follow ing an illness which confined him to an Omaha hospital early in M ay. i i i H . Y a t e s , president of the United States National bank of Omaha, is thinking of opening a matri monial agency on the side. Four young women employes o f the bank, all of whom have been in the serv ice of the institution five years, will be come June brides. T hey are: Evelyn Texley, private secretary to Perry H en dricks of the bank, who w ill wed Cedric T^ w yer Hornby, a fellow employe; Alice Sow ell of the analytical department, who will marry E. G . W ilm o th ; Viola Knudsen, secretary to Ernest E. Landstrom of the bank, who, loyal to her profession, w ill become the bride of j . P. M eany, a banker of Albany, N. Y ., and Evelyn Fuxa, who leaves the bank’s statements department to wed Emil Rokusek. A ll four girls are busy training four other girls who w ill fill their places in the “ lucky” jobs. i i i / ^ LVIN E. J o h n s o n , president of the x Live Stock National bank of South Omaha, is slated to be the next presi dent o f the Omaha Chamber of Com merce. D uring the past year, he has served the Omaha chamber as vice pres ident and chairman of the executive committee, and as councillor of the chamber wom en’s division. H e will be the second Alvin Johnson to head the Omaha chamber in recent years, although there was no relation ship between the two. T h e other was the late Alvin F. Johnson, Omaha at torney. W. 1 i i M il l a r d , J r ., vicepresident of the Omaha Nation al bank, and G w yer H . Yates, president of the United States National bank of Omaha, are both leading Ak-Sar-Ben membership teams in the drive to enroll five thousand Ak-Sar-Ben members for 1935. Both are members of the AkSar-Ben board of governors. B. “ B o b ” i i 1 on M ay 15 totaled $7,151,147 to set a new high daily total for the year. Clearings on the corresponding day last year were $4,321,218. Omaha clearings for the week ending M a y 15 were $31,020,280, the highest for any week since M arch 7, 1934, according to W . B. Hughes, secretary of the Omaha Clearing House association. F or the same week of last year, clearings were $27,412,127. YY m a h a b a n k c l e a r in g s 1 i i s u p r e m e c o u r t has overturned a judgment of the D ou g las county district court at Omaha that ^ he N ebraska Central Western Banker, June, 1935 9 ¡ d esigned and Operated f o r the Service o f a Fundamental and E ssen tia l Industry. A Banking Service Complete fo r Your N eed s. Stock Yards National Bank of South Omaha https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis O M A H A , NEBRASKA Central Western Banker, June, 1935 10 John C. Barrett was entitled to prefer ence over depositors of the defunct South Omaha State for $2,352. T h e high court held that the claim has the legal status of a deposit. Bar rett was guardian for an incompetent person, and had directed his wife to see that the money in question was not de posited in their personal account. It was so credited, however, because Bar rett was about to draw some money to take care of his w ard’s expenses. T he court held that the bank was not trus tee for the guardian and that the latter is liable for funds lost when deposited in a bank, where negligence is shown. i i i A C . “ C u r ” P o t t e r , president of A * the Omaha investment firm of Burns-Potter & Co., has purchased the home of M rs. Theresa Roeder, one of the showplaces of Fairacres, Om aha’s swankiest western suburb. T he new owners expect to occupy the property June 1, after extensive improvements. T h e house, of English influence, occu pies a tract of nearly two acres. Ever greens were brought from the M aine woods as part of the landscaping project. i i i D a l e C l a r k , president of the ' Omaha National bank, unani mously was elected a director of the United States Chamber of Commerce, representing the Eighth district, at the annual meeting in W ashington early in M ay. M r. Clark is a past president of the Omaha Chamber of Commerce. M r. Clark succeeds C. D . Sturtevant, Chi cago grain man, former Omahan. W . Dale Clark A n O p e n L e tte r to W h e a t and Corn Producers of the U nited States Prosperity at the Grass Roots By C. R. ANDERSON It has often been said that “ real pros perity must begin at the grass roots” —that is, on the farm. Cashier Farmers State Bank Saronville, Nebraska I H E R E B Y P R O P O S E that the A A A Crop Control plan as pertaining to * Corn and W heat be abandoned, and the follow ing permanent plan for the Corn and W heat producers be adopted. “ T hat any producer of corn and wheat in the United States, may at harvest time place up to 20 per cent of his wheat or corn crop in an approved warehouse on his farm, and after securing a warehouse receipt under the laws of his state or United States, the Government shall make him a loan of 40 cents per bushel on his corn and 60 cents per bushel on his wheat so stored. B his loan to be made without interest and financed through the issue of new money, which shall be retired when the loan is paid. “ T h e farmer when applying for this loan, must sign an agreement to take out of cultivation the number of acres required to produce the grain so stored, and that this land would not be put back into cultivation as long as this grain is cairied in storage. This land taken out of cultivation must be converted into permanent grazing or hay land by sowing suitable grasses or legumes. A ny of this land that is converted into permanent grazing land shall be exempt from all taxes for a period of not over five years, but only while so used. “ T his plan would restore independence to the farmer and eliminate long dis tance bureaucratic control as it would be left to each individual farmer to run his own business according to his circumstances. “ It would give us a sound commodity dollar without inflation features. It would eliminate from cultivation millions of acres of land that nevei should have been cultivated. It would go a long way toward preventing dust storms, and it would restore the depleted soil by giving the farmer an inducement to rotate his crops.” https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Unopposed for the office, M r. Clark had the indorsement of leading civic or ganizations throughout the district. Forty-two years old, the Omahan is one of the youngest of the new directors. Statistics support that belief. "1 he great bulk of our population depends for its living on agriculture — and depres sion has tended to send more people back to the farm, because of the impos sibility of finding jobs in industry. T he American farmer still provides the greatest single market for consuming the products that our factories produce. As a result, no citizen can afford to think that he has no personal interest in the ups and downs of agriculture. G ood times for agriculture help make good times for all businesses, all workers — precisely as depressed agriculture hits us all. Foresighted citizens, as a result, are throwing their weight strongly behind any movement whose purpose is to ad vance the farmer’s social and economic status. T h e farm cooperative move ment, among others, has been given the genuine support of industrialists, econ omists and others who have no connec tion with farming, but who know that prosperity at the grass roots is essential to national well-being. Central Western Banker, June, 1935 THE M OST 11 BU SIN ESS of the business recovery By C ol . L eonard P. A yres that we have had in this coun Vice President The Cleveland Trusi Company try in the past two years has been contributed by three industrial cor porations. T hey are the three leading producers of automobiles who manufac ture most of the cars and trucks that are made in this country. A ll the net gain in the volume of industrial production from 1933 to 1934 was equal to that made by the automotive industries, and the suppliers of its materials, and the gains so far in the production of 1935 over 1934 have been mostly due to the same factors. These astonishing results are a strik ing tribute to the ability of those pro ducers to improve the quality of their goods, and to decrease their prices, in spite of higher wage rates and shorter hours. T hey also constitute vivid testi mony of the insistent desire of the Am er ican people for new and better individ ual and family transportation. Never theless the sustained vigor of automo bile manufacturing does not furnish an adequate basis for general business re covery. W e need an expanding recov ery spreading from one industry to an other and another like a beneficent con tagion that will effectively absorb unem ployment. T h e latest Federal Reserve Board fig ures are for M arch. T hey show fac tory production at higher levels than one year earlier, and the same is true for factory employment and payrolls. T hey show that mineral output was lower than in M arch of last year, and con struction less, and freight-car loading smaller, and the value of department store sales less. Apparently as a nation we are far more willing to spend our money for new automobiles than we are to make any other important kinds of purchases, either of goods or invest ments. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis OUTLOOK 'Y 'he r ic h e s t 20 per cent of the farm ers receive almost 50 per cent of all the farm income, while the richest 20 advanced to new high levels, and for some classes of bonds the prices have risen to levels higher than any ever reached previously. M eanwhile the sup ply of new issues does not increase in response to this unusual demand. There is no precedent for this anomalous con dition. per cent of the non-farmers receive over A A A 58 per cent of the non-farm income. O n this basis it appears that the concentra tion of wealth among the more wealthy farmers is almost as excessive as it is among the more wealthy people in the industrial and commercial groups of our population. M oreover the concentration of poverty shows a somewhat similar condition at the other end of the eco nomic scale. A m ong farmers, the poor est 20 per cent of the families receive less than four per cent of the farm in come, while among non-farming fam ilies the poorest 20 per cent receive just over four per cent of the income. •A A A v o l u m e of industrial production has been declining since January, and apparently the record for M ay will show another small decrease, which will be the fourth in succession. T h e produc tion index of this bank was 17.2 per cent below the computed normal level in January, 19.0 below in February, 19.9 below in M arch, and the estimated figure for April is 21.7 below. This is the same as the level of last M ay and last December. ^J^h e A A A re spond to demand has been suspended so far as new capital issues are con cerned. T he evidence that this is so is to be found in the fact that abnormally high prices for existing bonds do not suc ceed in calling forth an increased sup ply of new bonds. T h e demand for in vestment bonds of good quality is so great that price quotations for them have rJ ', HE old LAW that supply will p a r t of 1933 and during M arch of 1934 it was clear that the new Securities A ct had made new financing almost impossible. T hat condition no longer maintains in a determining de gree, for through revision and by means of new interpretations the act has been rendered partly workable. A consider able amount of refinancing of old issues has been done under it, and there is rea son to believe that it no longer consti tutes an insuperable barrier to new is sues by established companies. Never theless the supply of new issues remains a mere trickle. T w o possible explana tions deserve consideration. T h e first is that perhaps business enterprises will not borrow funds to improve equipment and expand operations while federal bor rowing continues on a vast scale. T he second is that perhaps business will con tinue to refrain from seeking new cap ital as long as the codes maintain reg ulation over the details of their opera tions. I n The Silver Lining Those who predicted a few months ago that the United States would short ly be flooded with silver, due to the treasury’s purchasing program, w ill have to revise their views, according to Rene Leon, the well-known monetary expert. According to M r. Leon, little silver is available anywhere on earth today. T h e result is that demand must soon exceed supply— with rising silver prices follow ing. Central Western Banker, June, 1935 12 We Must Help the Public To Understand Banking N T H I S D A Y when most men think in world terms concerning na tional and international affairs, I wonder if we as bankers do not some times lose sight of the “ near at home,” the elementary, the workaday things that vitally affect our own communities and likewise our own banks. I M ay I ask this question then, “ W h at is the responsibility of the banker in educating his own constituency?” T he officers of a bank are the respon sible representatives for a very large number of investors and deposits. T h e impression has arisen that banks during this time of stress do not wish to lend money. Some of these criticisms suggest such a lack of knowledge regarding the real ownership, responsibilities and operation of a bank that it may be proper to deal with them for a moment, even at the risk of repeating what, to most persons, are elementary facts. Reduced to simple language, it is the function and duties o f the officers to en deavor to lend the funds of their depos itors in such a way as to safeguard their money and at the same time earn a re turn on the investment of the share holders. None of the money belongs to the bankers as the officers are commonly term ed; it is the depositors’ and share holders’ money. Shareholders employ the officers to lend that money for a profit; these shareholders and depositors demand that it shall be loaned with safety. A ll this is extremely elementary and would have no place here except that it seems to be so generally misunderstood by the average depositor. W e have reached a place in our bank ing where a better public understanding is to be desired and is, fully deserved. Y ou as bankers thoroughly understand that you have everything to gain by em ploying your large volume of surplus funds, which under the present circum stances earn nothing, in sound local en terprises. T h e difficulty arises not from the un willingness of banks to lend but from https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis By J. F. McLAIN Chief Examiner, Nebraska Department of Banking the unwillingness of sound business to borrow. T hat gives rise immediately to the question, what is “ sound” business? Succinctly we would answer it is that business which w ill guarantee to a rea sonable degree the return of the capital invested together with a fair income. W e realize your position is a difficult one. In the making of a loan both the cred itor and debtor assume a certain portion of the risk involved and it is inferred that each will do everything possible to meet the expressed or implied obligation in the agreement. T h e creditor must not unwisely over loan and the debt must not fail to use judgment in making his purchases. Because of failure of both creditor and debtor to respect his part in the transaction there may be occasions in which debtor relief is justifiable, along the lines of social and sound business. T h e danger is, however, that we may over-emphasize the creditor’s part of the responsibility and under-emphasize that of the man who borrows the money. D uring the past few years there has been a growing tendency towards this w rong emphasis. W e have been going far afield in en couraging a belief that the major por tion of the risk and obligation should be assumed by the creditor. W e have been building a debtor psy chology which is likely to place in the mind of the borrower the feeling of selfpity and martyrdom rather than one of determination to meet obligations, and deep regret if he is utterly unable to do so. If the thought continues to grow that a debt is something to be paid only if it is convenient to pay it, such a psy chology w ill be a more disastrous herit age from our depression period than with all the loss of money and wealth occa sioned by these difficult times. It will undermine the foundation upon which our credit structure and progress in business have been built. T h e most important service that you as bankers can offer in your community is to help your constituency to realize the necessity for preserving and foster ing a respect for obligations, and to sac rifice to the extreme end, if necessary, to preserve their integrity and self-respect. T h e department’s position at times, necessarily, is one of criticism. I assure you we try not to be captious, we w el come most sincerely constructive sug gestions and it is our desire to cooperate with you and we want you to feel free to call at the office of the department. Farm Income Ga ins Farmers in thirty-two states received more income from sales of principal farm products and government rental and benefit payments in the first quarter of 1935 than in the same period of 1934; farmers in fifteen states received less, and income of farmers in Texas was about unchanged, according to the Bu reau of Agricultural Economics. A gain of 12 per cent is reported for all states combined. Largest increases this year over last were in Indiana and surrounding states where feeding conditions have been rela tively more favorable this year, and where the increase in rental and bene fit payments was largest. Heaviest de creases in income were in North D ak ota where wheat marketings were great ly reduced, and in M aine where potato prices were less than one-third those of a year ago. T h e bureau says that in all regions except the South Atlantic and South Central States income in the first quar ter of 1935 was higher than for any similar period in the last four years. In the South Atlantic states receipts were below either the first quarter of 1934 or the first quarter of 1932. In the South Central states receipts were be low 1934 and above 1932. W est North Central states show a marked variation in percentage change 13 Central Hestern Banker, J une, 1935 in income. North Dakota farmers had less income despite higher wheat prices; Nebraska had less income from wheat and corn, about the same income from livestock as a year ago, and larger ren tal and benefit payments. Other states in this area had somewhat larger in comes despite the sharply reduced crop production. H igher prices of hogs and dairy products more than offset smaller marketings, and rental and benefit pay ments were larger. NEBRASKA BANKERS SEE PROSPEROUS Y E A R (Continued from Page 4) Ray Ridge, vice president, Omaha N a tional bank; Fred W righ t, Federal Land Bank of O m aha; H . H . Byers of Chas. R. W alters Co., Omaha. A t Holdrege, the list of passengers was increased by the addition of Norris Broaddus, president of the Stock Yards National bank of Kansas City, M o . ; R. R. Calkins, vice president of the Am er ican National bank, St. Joseph, M o .; J. M . Hellings, vice president, the In ter-State National bank, Kansas City, M o . ; and Albert A . Held, vice presi dent, the National Bank of Commerce, Lincoln. Ta xes Piled on Ta xes For a great many years a large part of the public has looked with dread to the appearance o f Federal income tax day. Individuals and industries were forced to turn into the treasury vast sums that might otherwise have been used for investment, building, and the creation of employment. N ow the citizens of the country don’t face merely one income tax day— mil lions of them face two and even three. In the city of N ew Y ork, for example, residents must pay the federal income tax, a state income tax, and finally a municipal income tax. A similar situa tion is met by the citizens of N ew Cas tle county, Delaware, which is now levy ing a county income tax, in addition to the state and federal taxes, as a means of financing relief expenses. T h e aim of legislatures in these days seems to be to pile as many taxes on top of taxes as a long-suffering public will stand. T h e upshot is that the tax-col lector, in many cases, is receiving all the surplus a business or an individual earns. T here is no money left for investment, for home construction, for industrial ex pansion. A nd the cause of recovery suf fers accordingly. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis One wonders how much longer the public’s patience w ill last. America is becoming one of the most tax-ridden na tions on earth— and only an aggressive, informed and active public movement against exorbitantly expensive govern ment can save us from eventual tax bankruptcy. W o rk H ard — Think Hard It is now feared that there will be another wheat shortage, due to the dust storms which have caused damage in the mid-west comparable to that done by last year’s drought. Farmers producing other products likewise face new and difficult problems, which have been caused largely by the failure of the government’s farm relief program to produce the results that were anticipated by the overly optimistic. A ll of this emphasizes the fact that the American farmer, if he is to work his way out of depression, is going to have to work hard— and think hard. He cannot depend on outside agency for his economic salvation. T h e whims of na ture, and the ancient laws of supply and demand cannot be controlled by fiat. T h e farmer’s best weapon lies in the agricultural cooperative — cooperatives which are owned and controlled by their members, and which enlist the abilities and energies of thousands of producers in order to work toward a common goal. One farmer, faced with disorganized distributing machinery, profitless prices, and chaotic markets is powerless— ten thousand farmers, joined organization, can fight a T h e old saying that only worth while kind never truer than in the agriculture. together in one winning battle. self-help is the of help was case of modern Group Chairman Frank K. Houston, president of the Chemical Bank & T rust company of N ew Y ork has been elected chairman of Group V I I I of the N ew Y ork State Bankers association to serve for the year 1935-36. Two Sides to Silver T h e Government’s present silver pro gram contains the seeds of great good — and at the same time it involves poten tialities for great damage. W isely pursued, strengthening the value of silver can be of much aid in stabilizing world monetary systems. And it is likewise beneficial in that it stimulates the long-depressed mining in dustry, and opens up opportunities for investment, employment and general in dustrial development. O n the other hand, over-hasty action in forcing silver prices up inevitably brings with it the fear of inflation — which is in itself a great detriment to the course o f recovery. T h e government experts have a vast responsibility in see ing to it that silver is given a fair and established value— and that the stand ing and worth of our currency is not imperiled in the process. G M A C SHORT TERM MOTES available in limited amounts upon request G eneral M A cceptance o to r s C o r p o r a t io n Executive Office " Broadway at 57th Street ~ Mew Tori;, M- T. OFFICES IN P R I N C I P A L CITIES 14 Central Western Banker, June, 1935 With Jail Sentence and Death Eliminating M any Criminals . . . Bank Robbe ries Continue E S P IT E the imprisonment or death of so many desperate bank criminals during the past year there has been no appreciable reduction in attacks on banks, James E. Baum, deputy manager of the American Bank ers Association in charge of the Protec tive Department, reported to the Exec utive Council of the Association at its annual spring meeting. D D uring the first half of the Associa tion’s fiscal year, there was a small de crease in the number of daylight holdups and forgeries, but a marked increase in night burglaries of banks, M r. Baum stated. T he report summarized bank crimes and activities o f the Protective Department as follow s: “ In the six months ended February 28, 1935, banks and trust companies in this country were the targets for 169 daylight holdups and 40 night bur glaries, a total of 209 bank robberies compared with 217 similar attacks in the same period a year ago, when 188 h old ups and 29 burglaries were reported. This year, association member banks were the victims in 85 daylight holdups, 6 night burglaries, 91 forgeries and 7 sneak thefts, a total of 189 crimes re ported for investigation by the Protec tive Department. Although non-mem ber banks aggregate about half the num ber of those enrolled in the association, they suffered a greater number of rob beries, namely, 84 holdups, 34 burglariet and one sneak theft, or 51 per cent o f all the bank robberies committed during the period. “ As in previous years, this compara tive experience in crimes of violence is significant of the protective advantages enjoyed by member banks. These ad vantages are emphasized by the robbery experience of banks in Alabama, G eor gia, Illinois, Indiana, Iowa, M aryland, Michigan, North Carolina, South D a kota and Virginia. In Alabama, one member bank was burglarized as com pared with the non-members’ record of https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The report to the Executive Council of the A m erican Bankers A s s o c i a t i o n of J a m e s E . B a u m, deputy manager of the Association, and in charge of the Pro tective Department one burglary and 4 daylight holdups. Georgia banks sustained 15 burglary and holdup attacks, only 3 of which were directed against association members. In Illinois, non-members accounted for 7 of the 9 bank robberies and in Indiana, non-members were the victims of the 10 robberies. In both Iowa and North Carolina, non-members accounted for 6 of the 7 robberies reported in each state. In South Dakota, only 3 of the 9 rob beries were against members, and all of the bank burglaries and robberies re ported in Maryland, Michigan and V ir ginia were perpetrated against non members. “ D uring the period under report, bank burglars and bandits exacted trib ute amounting to $943,551 compared with losses totaling $1,257,000 a year ago. This reduction in the amount of loss sustained through bank burglary and holdup is attributed to the time-locking restrictions and other limitations in the exposure of surplus cash imposed last year by underwriters and several bank supervisory authorities. But there has been no let down in the activity of fre quency of attack by bank bandits. T he ranks of the bank robber may have been reduced, but they do not lack replace ments or persistence in their determina tion to exact tribute from banks even in small amounts, so long as there are plenty of banks vulnerable and helpless to resist their surprise attacks. “ T h e sharp reduction in the material loss of money and securities resulting from bank robbery this year is over shadowed by the killing of 2 bank em ployes, one bystander and 5 arresting o f ficers. Since last August, bank robbery also cost the lives of 15 criminals and caused physical injuries to 10 bank em ployes, 12 bystanders, 9 arresting offi cers and 8 bandits, a total of 62 cas ualties. “ Investigations conducted by the as sociation’s detective agents resulted in the arrest of 36 forgers, 42 bandits and one burglar, or 79 of the 141 criminals reported as being apprehended during the period. O f these, 67 have already been convicted as were 61 other prison ers arrested in the previous year. In this roundup of bank crooks, a number of ingenious and desperate characters were caught whose cunning and daring demand a staff of trained investigators operating over the same nationwide areas as the crooks. In addition to satisfying the criminal charges for which they were arrested, their imprisonment as sures relief from loss to all banks. “ In addition to the relentless pursuit and prosecution of bank criminals with out compromise, crime prevention has been a cardinal principle of the associa tion’s warfare against criminality for more than 40 years. LTpon the sugges tion of Vice President Robert V . Flem ing, however, the committee agreed that the services of our agents should be at the disposal of members for the inspec tion of bank premises to detect and elim inate hazards which may invite or facili tate burglary, robbery or sneak theft. Therefore, the Protective Committee has arranged to supplement the investigation services already available to members by personal inspections and counsel of our detective agents. As outlined on the front cover of the current issue of our Protective Bulletin, to inaugurate this service, our agents have prepared a form (Continued on Page 16) 15 Central Western Banker, June, 1935 I N S U R A Nto CF E Us Application the W hen the Prospect Says “Write It Up” By CARROLL THOMAS, General Agent General American Life Insurance Company Little Rock, Arkansas T IS a privilege to be a life insur ance salesman. I have been in the selling field for many years, and have yet to close a sale that gives one as great a thrill as hearing a prospect for life insurance say, “ W rite it up.’ Being successful in selling life insur ance is being successful in the best-paid H A R D work you may engage in. One of the pitfalls of the business is that too many fail through believing they are en gaged in the best-paid EAS'i ivork of all. T h e direct cause of failure in this business is failure to prospect. There have been volumes written on the sub ject of prospecting and very few have told how to do it. W h o is a prospect for life insurance? One who has the need, can pass, and can pay. W here are you to find this person ? I P rospects An old story that I have always re membered tells of a new agent who had been instructed in the rules of the com pany and the rate book, had been given supplies, a slap on the back, and called to the window of the General A gent’s office and told to look down on the street. T h e General Agent said, “ Y ou see all those people down there— all of them are prospects for life insurance.” T his was very wrong for there were people in the group that were too young, too old, some uninsurable and some of sex or color that many companies would not have accepted. T o find an accept able applicant— one who has the need, can pass, and can pay— requires many calls, carefully planned interviews. This prospect may be next door or in the next town. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M ake yourself so well known and liked by everyone in your community that it will be easy for you to meet peo ple and get information about them. Living in a community gives one ample opportunities for making friends and ac quaintances through different sources. Y our civic club — your church — your hunting club— all provide prospects. If you so live, then in addition to a few cut-and-dried methods of obtaining prospects you will have your friends and acquaintances helping you. A hey will tell you of the new baby, the promotion, the mortgage on the home, or that some one was heard talking about adding to his life insurance program, and many other leads that could only be gotten from friends or acquaintances. Pick up the person waiting on the corner to go to town. He may be pres ident of a local business some day, and help you in his organization. I remem ber very well an acquaintance who later became service manager of an automo bile company. He was only a mechanic at the time I picked him up one morn ing, but in two years he became service manager. W hen I developed the thought and plan of selling the employes of this company group insurance, I had only to secure the employer’s consent to present the plan— the one-time mechanic did the rest. H e bought first and told fortythree others that they should buy, and I secured their applications without fur ther opposition to the plan on the part of the employes. Cause people to become obligated to you, then it is easy to ask favors of them. Prospects like these are valuable when you are participating in a contest. P olicy h old ers Policyholders are the greatest asset a life insurance salesman can have. Through them he gets his best prospects. It is said than when a life insurance agent has acquired 100 policyholders, his prospecting worries are over. Rem em ber— an important part of prospecting is to let people know you are in the busi ness and ask them to buy. Never write an application or deliver a policy with out finding out all about the prospect’s family, friends, and neighbors. T he policyholder endless chain of prospect ing will help you. It should not be forgotten that cold canvassing w ill help any agent. It brings out initiative on his part. I experienced proof of a policyhold er’s help very recently. In 1932, one of my policyholders told me that a certain farmer was about to buy a $10,000 pol icy. I knew the agent who had the most direct lead to this prospect and tried to study him and figure out how he would sell the farmer. I found that he was selling policies, only. It was my plan to sell this farmer on the idea of what life insurance would do for him and his family. H e bought from me a monthly income contract, paying his wife and children a certain sum each month after his death, or to him, if he lived at age 60. This man doesn’t know to this day how much life insurance he bought. He is interested only in what the contract will do for him and the savings he must set aside each year. T h e same policyholder who gave me the above lead, in O ctober of last year 16 Central Western Banker, June, 1935 told me of a man who was thinking of adding $10,000 of insurance. T h e man was fifty-six years old and had three children, two boys and a girl, all nearly grown. I asked my friend about his fi nancial condition and found that he had a large farm with good equipment, and that he owed some money. I showed this prospect how he could leave the farm to his family, clear of indebtedness. I sold him a contract on this basis, col lected an annual premium of $495.00, and sold his son-in-law a $5,000 con tract the same afternoon. There were four cars, containing eight men after this business— all at the prospect’s house at the same time. Y ou r next door neighbor, your doc tor, your preacher, your baker, your grocer, your friend, and your policyhold ers are all prospects if you find they have a need for life insurance. Learn their needs, then whether they can pass and can pay. Sales Talks W h ile I believe in so-called “ canned” sales talks, especially for new men, I think the greatest sales talk is to know your business and be natural. W hen you know your business you are watch ful of every opportunity to find the need of the prospect and are capable of fitting a certain contract to this need. Avoid “ high pressure” salesmanship. Believe in what you are telling the pros pect, so that you show your sincerity, then watch your prospect begin to help you sell him. D o n ’t confuse “ prospects” with “ sus pects.” Knowing your business includes knowing the difference between the two. In this, the greatest business of all, too many enter who fail. Improper pros pecting is the reason. There are too many agents in the business. T his is the fault of the life insurance companies. It is too bad to have to say that 10 per cent of the agents sell 90 per cent of the business, when you take into considera tion the number of licensed life insur ance agents under contract. Life insur ance companies spend millions through different channels, putting men in and out of business. T hey are constantly seeking production, mostly on a contest basis, which causes general agents to pay too little attention to the right type of man they get into the business. If all companies would, along with their very good training given an agent, teach him to prospect and demand this of his gen eral agent and manager, there would be fewer failures. T his system should come from the home office of the life insur ance companies. W ith the plan effective, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis the new man would always know where he was going and why, and would like wise have many more thrills of hearing the prospect say— “ write it u p !” BANK ROBBERIES CONTINUE (Continued from Page 14) of ‘ Bank Inspection R eport’ which re flects the exposure hazards and weak spots uncovered in their nationwide ex perience investigating bank burglaries, holdups and sneak thefts. T h e report lists eighty leading questions and seven teen recommendations which are instruc tive in the prevention of night burglary, daylight holdup and sneak theft. M any of these questions relate to alarms and other protective equipment, also win dows, doors, skylights and other en trances which have facilitated the early morning entry of bandits who kidnap bank employes from their homes during the night, or break into the bank prem ises and bind and gag employes until one comes alone who is capable of opening the combination locks on vaults or safes. These ‘morning-glory’ bandits have bloomed too frequently in recent years chiefly because the bank premises are easily entered or precautions are not taken to detect the entry of criminals before the arrival of bank officers. W here banks prefer making their own inspections, the report is sufficiently com prehensive and informative to assist them in conducting their own examina tions.” More Business . . . Less Profit A summary o f railroad operations during 1934 brings out some surprising facts. Freight traffic increased 7.9 per cent over 1933, and passenger traffic in creased 10.4 per cent. Operating revenue increased 5.7 per cent. Yet, net operating income for the lines was $11,000,000 less than it was in 1933, which was in itself a very bad year. And where, in the preceding year, the lines had a net deficit of $6,000,000, they sustained a net deficit of $32,000,000 in 1934. Here is one more industry which is doing more business, receiving a larger total income, and is still making less money — or more deficits. T h e reason for the unfortunate experience of the railroads is that operating expenses in creased 8.5 per cent over 1933. Some of the increase may have been unavoidable — but much of it was not. Unfriendly legislation had fastened new and in creased charges on the lines. Taxes had risen. Government had, in brief, forced up the cost of operation — and done nothing to enable the lines to make the money with which to meet it. T he I. C. C. decision which empow ered the rails to make slight increases in some freight charges, will help meet the problem. So w ill the proposed new law to effect equitable regulation of all car riers, which has been passed by the Sen ate and is now pending in the House. But these measures, forward-looking as they are, only scratch the surface of the issue— much more remains to be done if our most vital single industry is to be given a chance to prosper and progress. Rastus was sent to the general store. “ M y boss,” he said to the clerk, “ wants a pane o ’ glass nine by ’leven.” “ H aven’t got none that size, Rastus,” said the joking clerk, “ but will a ’leven by nine pane d o ?” “ I ’ll try ’er,” replied Rastus: “ mabbe if we slip ’er in sideways nobody’ll notice it.” “My goodness,” exclaimed th e stranger who had dropped into the police court, “ they’ve caught a pretty tough lot this morning, haven’t they?” “ Y o u ’ re looking at the wrong lot,” said his neighbor. “ Those aren’t the prisoners. T h e y ’ re the lawyers.” Elderly Gentleman (to manicurist) : W h a t’s the idea of those marbles?” (as he noticed two agate balls on a tray on her table). T he Manicurist (as she pushed back the cuticle) : “ So my customers will have something to do with their free hands.” Plum ber: “ Is this where you wrote for a plumber to come, lady?” Lady of the H ouse: “ Plumber, in deed ! W h y, I wrote last July.” T o M a te: “ Come on, Bert— wrong house. Party who wrote last April w e’re looking fo r !” T w o stuttering blacksmiths had fin ished heating a piece of pig iron, and one placed it upon the anvil with a pair of tongs. “ H-h-h-hit it,” he stuttered to his helper. “ W h-wh-w h-where ?” asked the other. ‘ ‘Ah, h-h-h-h-hell, w e ’ll have to h-hheat it again now .” 17 Central Western Banker, June, 1935 ^iM itiim m iim m m iiiiiM iiiiiiiim iim iiiiiiiiiiiiiMM m tm iim m m iiiiiiiiiiiiiiiiiiiiiiiiiiitiiiiiiiiiiiiiitiiiiiiiiiiM iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiin^ Buy Bank Stock Plans were consummated recently whereby M rs. Emma L. Bath, M rs. Adah Bath W ells and Frank E. W ells acquired the controlling interest in the Auburn State bank. Other stockholders in the bank are W illiam Bohling, Sr., H erman Lunzmann, H . G . Harms, H . Fred Hector, G uy W . Rhodes and Roy W . Dirks. A fter the transfer of stock the stock holders elected the follow ing board of directors: Emma L. Bath, Adah Bath W ells, W illiam Bohling, Sr., R. W . Dirks, and Frank E. W ells. T h e board organized and elected the follow ing bank officers: M rs. Adah Bath W ells, chairman; Frank E. W ells, president; M rs. Emma L. Bath, vice president, and R. W . Dirks, cashier. Bank Measure A bill to correlate state and national banking laws to permit Nebraska’s fi nancial institutions to take full advan tage of the 1933 national banking act’s provisions for deposit insurance and fed eral aid for weak banks was advanced to third reading by the house of repre sentatives recently. T h e bill, SF 123, has been passed by the upper branch of the state legis lature. In addition, the measure also sets up the machinery for liquidation by the F D I C of insolvent state banks with membership in the federal corporation, as provided for in another measure al ready approved by the lawmakers. Eagle, where he was a banker for four teen years. H e was a republican. M r. Frantz was a graduate of Nebraska Wesleyan university in 1897. He came to Lincoln six years ago. For Small Banks G overnor Cochran has legalized the formation of small capital banks in N e braska. H e signed and immediately placed into effect the Putney bill to permit the organization of banks of as little as $10,000 capital in villages of less than 1,000 population. T h e present law re quires a minimum of $25,000 capital. Bearing the approval of Ben N . Saun ders, state banking superintendent, the measure was safeguarded by a provision requiring such small banks to increase their capital annually if their deposits exceed 10 times the capital. Hom er K . Frantz, 63, a former pres ident of the Nebraska State Bankers as sociation and for many years a banker at Eagle, died in Lincoln recently of heart disease complications. H e had been critically ill. M r. Frantz was state representative for two terms, 1919 and 1921, from the seventh district, while he resided at https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Co-op at Lewiston T he Lewiston Cooperative Credit as sociation, which was organized recently by citizens of that community, is now doing business. N ew members are be ing added since opening for business. T he follow ing members compose the board of directors: D r. J. W . Douglas, W illiam Ulrich, J. M . Frazer, C. R. Hutchison and W . W . Joekel. M r. Joekel, who was formerly cashier of the Bank of Lewiston, is in active charge of the association. Bill Signed Lincoln A .I.B. Paul G . Bogott was elected president of the Lincoln chapter of the American Institute of Banking at the annual meet ing held at the First National bank. He succeeds Clifford G . W eston. A . W . Griffin was elected vice president, A . C. Glandt secretary, and Elmer D eK ay treasurer. F our delegates were named to attend the national convention of the association, to be held in Omaha, June 10 to 15. T hey include: D on S. Cozad, C. I. Anderson, A . C. Glandt and Clifford G . W eston. Another Big Day Dies in Lincoln would be entitled to the deferment con cession which expired Saturday. Under terms of the emergency farm mortgage act, farmers acquiring loans were permitted to postpone payments on principal until July, 1938, provided their were closed before Saturday. Nearly one thousand loans totaling approximately four million dollars were closed Saturday, M ay 11, at the federal land bank in Omaha, the biggest day in the institution since M arch 24, 1934, when a single day’s loans hit the seven million dollar mark. A staff of workers stayed on the job Sunday closing loans and dating the closings as of Saturday so the borrowers Governor Cochran has signed one of his platform pledges into law, approv ing the Putney bill to permit local liqui dation of failed state banks. T he measure, which will go into effect 90 days after the legislature adjourns, will permit a majority of depositors and creditors in a failed state bank to obtain court permission to appoint their own receiver. Co-op at Dunning 4 he business men of Dunning and community are organizing a cooperative banking institution. Practically every one in and near Dunning are very de sirous of seeing a bank in Dunning. J. G . Fountain w ill have charge. Ahead of Last Year Bank clearings in Hastings, decidedly on the upgrade for each month of 1935, show the largest increase over a corre sponding 1934 period in April, when clearings were 52 per cent higher than they were the same month a year ago, Central Western Banker, J une, 1955 18 T hat statement is based on a survey recently completed by the Hastings Chamber of Commerce. T he same sur vey shows further analysis of figures: “ T otal clearings for April, 1935, were $404,487.42 as compared to $266,218.94 in April, 1934. “ As a result clearings for the first four months in 1935 were 35 per cent higher than the same four months in 1934, totals this year being $1,544,095.48 and $1,146,522.41 for the first four months in 1934. “ Records maintained in the office show constant increases each week this year. Every month in 1935 has been higher than the corresponding month a year ago, January showing a 14 per cent increase, February 38 per cent, M arch 35 per cent and April 52 per cent.” “ These increases,” the Chamber of Commerce announces, “ plus the con stant increases in bank deposits, are ac cepted to reflect better financial condi tions in Hastings.” Twenty-five Years T h e City National bank of Crete completed 25 years of useful service to the community recently, having been opened for business on April 28, 1910. Organizers of the bank were G . E. Leavitt, C. W . Weckbach, J. S. Brown, R. D . Brown, F. A . Novak, J. D . W righ t and Horace Fuller, the latter being its first president. M r. W eckbach was the first cashier. Both are deceased. M r. Novak has been cashier since the passing of M r. Fuller twenty years ago, when M r. W eckbach became the bank’s president. T h e present personnel of the bank is John Rothmuller, president; M rs. F. C. Wechbach, vice president; F. A . N o vak, cashier; E. C. Plouzek and Clark W eckbach, assistant cashiers; Carl W eckbach and M rs. Ruth Richardson. Heads A .I.B . H. V . M cL ean of the United States National bank was elected president of the Omaha chapter of the American In stitute of Banking at a meeting of the board of governors, to succeed Einer P. Juel. Other officers are Ernest Tanner, First National bank, vice president; George E. Lockwood, Occidental Build ing and Loan association, secretary, and Louis Barta, Live Stock National bank, treasurer. Service Charge As a result of the recent meeting of the bankers of District 6 at Rushville, banks have adopted and put into effect on M ay 1st a schedule of service charges which are uniform all over the district. Some of the charges have been in effect for some time, such as the charge of 50 cents per month for accounts which do not run an average daily balance of $50 during the month. For each $10 average per month over the minimum of $50, the depositor is allowed to issue one free check, and checks in excess will be charged for at 3 cents per check. T h e new service charge, it is under stood, is that of 5 cents per $100 or fractional part thereof on each out of town check cashed or deposited to the drawee’s credit, which is the same thing. A charge of 25c on each ch eck' over drawing an account will be collected. Co-op at Martinsburg T he new Martinsburg Cooperative bank is now open for business. Head quarters are in Egan’s store under the charge of Herbert Egan. T h e officers are president, Pat Burke; vice president, Fred Schlines; treasurer, Herbert Egan; directors, James M cQ u illen and Alden Lockwood. Plan for Ladies Plans for entertaining the women’s section of the annual convention of the American Institute of Banking have been made by the wom en’s convention committee in Omaha. T he convention will be held in O m a ha June 10 to 14, and plans include a bridge tea, a wom en’s conference, a for mal tea for the national committee and a style show. Lucile Thornton is in charge. 1111111111111111111IIIIIIIIIIIIIIIIIIIMIIIIIIIIIMIIIIIIIIIIIIIIIMIIIIIIIIIIIIIIIIIIIIIIIHIIMIIIIIIIIIIMIIHIII lllll llllllll II llllllllll uiiH im im m iim iiiiiiiiiiiim iiim iiiiiiim iiim iiim m iiim iiiim iiiiiiiiiiiiim iiim iiiiiiiiim im m ......mimmi'*' Promoted George Klein and George B. Berger, Jr., were promoted recently to vice pres idents of the Colorado National bank, Denver, by the board of directors. Harold Kountze, president, said the men were being rewarded for services rendered and that the bank needed addi tional officers because of prospects of improved business. For Klein is at present auditor and assis tant cashier of the Colorado National and has been with the bank 20 years. Berger is in charge of the investment end of the trust department and has been with the institution since 1930. SPEEDY T R A N S IT SERVICE Use The Continental National Hank L IN C O L N , N E B R A S K A Pres. V. Pres. E d w a r d A . B e c k e r , Cashier W . S . B a t t e y , Asst. V. P. E. N . V an H orne, T . B . S t r a in , https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis R. C. J o h n s o n , Asst. V. P. C. W. B a t t e y , Asst. Cashier E l m e r D e K a y , Asst. Cashier F r e d S . A l d r i c h , Asst. Cashier Clearings Up Clearings of the Pueblo banks for the first four months of this year soared to the high figure of $9,196,679.36, it was announced recently by the First N a tional. T h e clearings for the corresponding period in 1934 amounted to $7,527,922.68, the First National’s compara tive report shows. Clearings in April were $2,378,334 against only $1,941,699.46 the corre sponding period in 1934. 19 Central Western Banker, June, 1935 Banker Dies Three Banks John M . W hitm ore, Denver banker, formerly of Salida, died recently in Kan sas City. His death was due to an ill ness contracted while traveling through a dust storm in Kansas. H e was 62 years old. M r. W hitem ore came to Salida in 1908 as manager of the Salida State bank. A fter operating six years, the bank was sold to a group, who organ ized the Commercial National bank. T h e State bank occupied the quarters now occupied by the First National bank. Three bankers in Boulder are well equipped to perform banking services for summer visitors. T hey are the N a tional State bank, the First National bank, and the M ercantile State bank. Deposits in all of them are protected by the federal deposit insurance corpora tion. Anniversary Sixty-one years in the history of Boul der, from the days of its beginning, the National State bank has been a factor. T he anniversary of the establishment of the bank of Buckingham Brothers, Charles G . Buckingham and his brother W . A . Buckingham, with the former as president, in April, 1874. In 1877 the National State bank was chartered. During that period and all the years of varying fortunes, M r. Buckingham has remained as president. T h e bank has an unbroken record of progress and de velopment paralleling the growth and development of the city. Teller Dies Funeral services for Edwin G . Cook, 27, a bank teller were held recently. M r. Cook was employed in the D en ver National bank and was to have be come a teller in the savings department. Industrial banks which lend money to small borrowers may not charge more than 10 per cent a year interest, accord ing to an opinion handed down by Dis trict Judge O tto Bock o f Denver. T he opinion applies to all money lend ers operating under the legislative act of 1923, and is so far-reaching that in dustrial banks are expected to combine to appeal the decision to the State Su preme court. Opens in Craig M rs. Clyde L. Stout, wife of the Poudre Valley National bank, is in the Larimer county hospital with injuries incurred when the automobile driven by Stout left the highway after striking a dog. T h e accident occurred southwest of Berthoud. M rs. Stout is suffering from a spinal fracture and partial paralysis of the right leg and thigh. M r. and M rs. Stout were en route to Denver. T h e car struck the bank at the side of the road. T h e M offat County State bank was open for business in Craig, M ay 11. A debate on “ Resolved, T h a t the Lhiited States should adopt a policy tending toward economic self-suffici ency” was held under sponsorship of the Denver chapter of the American Insti tute of Banking. Teams of two men from the institute’s chapters in Fresno, Calif., and St. Paul M inn., presented the arguments. T he affair was part of a national tourna ment to pick the two teams which w ill debate at the institute’s annual conven tion in Omaha, June 10 to 14. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis T he M offat County State bank has been organized by a group of the stock holders of the Simla State bank. T he charter of the Simla bank is being re vised for use by the Craig bank and the capital setup of the Simla bank w ill be used by the M offat County State bank. H . V . Downing, president of the Sim la bank, will become the vice president of the M offat County State bank and will make his home in Craig. Retires Rate Limit W ife Injured A .I.B . Debaio Routt, M offat and Grand counties in the Thirtieth General Assembly, is a stockholder in the bank and comes to Craig to become cashier of the institu tion. A. H. Y o u Poppen, w ill representative r e c e iv e of . W illiam A . Hover, 79, widely known in western banking and business circles, retired as chairman of the board of the United States National bank, Denver, recently. He was one of the organizers of the bank in 1904 and was its first president. T h e banker now is in Long Beach, Calif. A desire to be free of some of his business connections caused his re tirement, bank officials said. Orville L. Dines of Denver was named to suc ceed him. H over continues as chairman of the board of W . A . H over & Co., whole sale druggists, which he founded in 1882. H e also continues as a director of the M ountain States Telephone & Telegraph company. . P r o mp t - E f f i c i e n t Economica I Handl i ng on a ll i t ems if d i r e c t e d to us L I V E STOCK N A T I O N A L B A N K OMAHA W e make feeder loans in co-operation with our correspondent Banks C o n v e n t i o n — A m e r i c a n I n s t i t u t e o f H a n k i n g , O m a h a , J u n e lO tli t o 1 4 th 20 Central Western Banker, J une, 1935 iiiiiiiiiiiiiiiiiiiim iiiiiiiiiiiiim iiiiiiiiiiiiiiiiiiim iiiiiiiiiiiiiiim iiiiiiiiiiiiiiiiiiim iiim iiiiitisiiiim iiiiiiim im iiift Kansas News Seattle, asking him if he desired the bill for a keepsake. iiiininiiiiiMimmiiimmmiiiiiimmmmiimiiiiitimiiimiHim imiiiiiiiiiiiimiiiiHHtmiimmiimimiiiimmi Consolidation Annual Convention Beginning with a pre-convention mix er at the H otel Jayhawk, the annual Kansas Bankers association convention was held M ay 15-17. An attendance of around 1,500 was registered. C. B. A xford, of N ew Y ork City, editor of the American Banker, daily banking trade publication, the principal speaker at the Missouri convention, was also on the Kansas program. Other speakers were M aurice Briedenthal, Kansas City, Kan., president of the K .B .A .; J. F. T . O ’Connor, W ash ington, comptroller of the currency; Rudolph S. Hecht, N ew Orleans, pres ident of the American Bankers associa tion. Time Lock T h e Union State bank, Clay Center, is having work done on the bank vault, equipping it with a delayed time lock, making it more burglar proof. John Lindbergh, who installed the new vault in the Peoples National bank, is doing the work. Still Circulating T h e first $5 bill to be issued by the First National bank of Manhattan, for ty-eight years ago, still is in circulation. W . D . W om er, president of the bank, received a letter from L . W . W ilson of • FONTENELLE • Genial Plans have been completed whereby the M ontezuma State bank took over the deposits and part of the notes of the Peoples State bank of Ensign. T he Ensign bank was in good condition but the officials were of the opinion that, in view of the present conditions, it was advisable to liquidate that institution. T h e officials of the Ensign bank were : President, A . O . Hamilton ; vice presi dent, L. A . N elson; W . A . Applegate and A. K. Reynolds, directors. A fter the consolidation the M on te zuma State bank is the largest bank in Gray county with $175,000 in deposits, cash and sight exchange of $82,000. L . A . Nelson will become a director and an official of the M ontezum a bank which will be the only change in this in stitution. T h e officials of the M on te zuma bank are: President, M . L. F ry; vice president, Linn Frazier; vice pres ident and cashier, E. E. M cM cR e y n olds ; assistant cashier, T . J. Glasgow ; M rs. M . L. Fry and M rs. Zoa M cReynolds are directors. County Meeting T h e annual meeting of the Harper County Bankers association was held in Harper recently. T h e program of the meeting consisted of round-table discus sions, led by the retiring president, L. D . Banta of the First National bank of that city. FONTENELLE Nebraska • FONTENELLE • Hospitality HOTEL CM AH A, NECK. E very city has one outstanding h otel . . . O m aha’s is the F on tenelle. H ere y o u ’ll find genuine w estern hospitality, togeth er w ith the fam ous service, courtesy and co m fo rt fou nd in all Eppley H o tels. E xcellen t food at sensible prices in ou r tw o luxu riou s dining room s. EPPLEY HOTELS COMPANY FONTENELLE https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • FONTENELLE To Oklahoma Several W ichita bankers attended the annual meeting of the Oklahoma Bank ers association. T h e First National was represented by Frank L. Carson, president, and C. J. Chandler, vice president; the Fourth National by D rew M cLean, vice presi dent, and L. C. Kelly, cashier ; the Union National b.y W . B. Harrison, president, and the Southwest National by Frank G . Huey, assistant cashier. Merger A merger was completed recently of the Deerfield State bank with the Kear ny County bank. A ll business of the Deerfield State bank was transferred to the Kearny County bank in Lolsin. T he merger makes the Kearny County bank a quarter of a million dollar institution, and the patrons of the Deerfield bank are assured the same prompt and effi cient service they received at Deerfield. Inter-County Meeting fCNTENELLI • Every bank in Harper county was represented at the meeting, in addition to the follow ing out of the county guests: S. T . Baldwin, First National bank, Kingm an; B. A . W elch and L. L. Bobler, Kingman State bank; H om er Hunt and K. L. Giger, State Bank of Conway Springs; L. W . Fullerton and C. B. Fullerton, First National bank, Medicine L od g e; L. E. M cC lu re and R. L. G oforth, Bank of Kiowa, K io w a ; J. M . M o lz and A . M . W ebb, Farm ers State bank of Hardtner and E. J. Grigsby and Frank M cReynolds, Shar on Valley State bank of Sharon. A . A . Hilliard of Attica was elected president of the Harper County Bank ers association for the ensuing year, and H . H . Halbower of Anthony, vice pres ident. • FONTENELLE • A meeting of the inter-county bank ing group was held in Emporia with a dinner preceding the business session. Guest speakers for the evening were Harry A . Bryant, vice president of the Kansas Bankers association, and R. N. M iller, of the College of Emporia fac ulty. T h e inter-county banking group includes all banks in Wabaunsee, M o r ris, Osage, Lyon and Coffey counties and part of Shawnee county. Court Houseworth, president of the First N a tional bank of Harveyville, is president of the inter-county group, and W ayne Randall, cashier of the Citizens State bank of Osage City, is secretary. Central JVestern Banker, June, 1935 A t Lyndon 21 4 he Osage County Bankers associa tion held their regular meeting in Lyn don recently. T h e meeting was preced ed by a group supper served at the Storbeck cafe, and all very much enjoyed the splendid meal and fellowship. R ou tine business was transacted at the eve ning meeting at the court house. cording to a report issued from the state examiner’s office. D uring the same period, loans de creased $2,472,149 to $17,999,784, the examiner’s figures showed, while depos its increased $7,175,433 to $49,462,409. T he average cash reserve in the banks was 41.50 per cent against 31.25 per cent a year ago. In Neodesha New Building A bout forty were in attendance for the regular meeting of the W ilson Coun ty Bankers association, held in Neode sha. T h e usual dinner was served at 6 :3 0 o ’clock and H arry Bryant of Par sons was the principal speaker of the evening. T h e next meeting will be held in Fredonia on Friday, June 7th. T h e State bank of W heatland has moved from its temporary quarters in the M asonic Tem ple building into its new home erected on the site where the old building was razed. T h e new building is one of the finest of its kind in the state, modern in every respect and equipped with every bank ing facility. D . W . Brice is president of the bank. Leon Goodrich of Casper was the ar chitect and L . B. Adams of Wheatland, supervisor of construction. T h e old building just replaced was built in 1905 and occupied by the First National bank of which G uy Dann, now deceased, was first president. Smith County T h e Smith County Bankers associa tion held its annual meeting for election of officers in Smith Center. Special commendation was paid to the retiring officers, Roy Santner, president, H ar lan; E. H . W om er, vice president, Ken sington ; R. W . M cL eod , secretarytreasurer, Smith Center. These officers have served for the past three years, which have been the most difficult in banking history. T h e follow ing men were named as the new officers: P. A . Derge, Lebanon, president; Harold Vandervort, Lebanon, vice president; C. W . Diehl, Smith Center, secretarytreasurer. iiiiiiiiiiiim iiiiiiiim im iiiiiiiitiiiiiiiiiiiiiiiiiiiiiiiiiiiitiiim iiiiiiiiim iiiiiiiiiiitm iiiiim iiiiiiiiiiiiiiiiiiiiiiiiiiiim tfllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllltlll(llllll!lllllllllllillllllll>l|||||||l!lllllllllllll Resources Increase Resources of 26 national and state banks in W yom ing were $57,851,235 as of last M arch 4, or an increase of $6,917,569 over the same date in 1934, ac iiiiimiiiiiiiiiiitiiiiiiiiMiiimiimmiiiiiiiimiiiiiimiiiiiiiiiitiiiiiiimjiiiiiiiimimmiiiiiiiiiiiiiitiiiiiiiiiiiiHiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiim iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiu iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiim ,in ,iiim ii,m m Bank Chartered T h e Bank of M onrovia, located in Santa Fe, was chartered recently by the state corporation commission to do a general banking business wholly outside the state. T h e authorized capital stock is $100,000 and the corporation begins business with $75,000. T h e incorporators are Francis C. W ilson, George E. Kessler and John T . W atson. Opens Office T h e Citizens bank of Clovis opened its Fort Sumner office recently with upto-date furniture and fixtures. T he bank will be under the manage ment of Clyde Ray, who has been in the employ of the parent institution for several years. Another Dividend Depositors of the Bank of Deaver, W yom ing, soon w ill receive checks to taling about $4,000 and representing an other 10 per cent dividend, according to announcement at the office of the state examiner. Previously, depositors of the closed institution have received dividend pay ments amounting to 10 per cent, it was said. Leave It to Them “ I can’t marry him, mother. H e ’s an atheist, and doesn’t believe there is a hell.” “ M arry him, my dear, and between us w e’ll convince him that he’s w rong.” Joins W alters Company H . H . Byers has purchased a half in terest in the Charles E. W alters C om pany of Omaha, and has been elected vice president, according to an an nouncement made by Robert L . Goethe, president. M r. Byers was associated with the Charles E. W alters Company for a number of years, up to 1925, at which time he resigned to engage in business in Chicago. He now returns to Omaha, where he has become actively associated again in the buying and selling of banks, a business in which Charles E. W alters Company has specialized for thirty years. AUSTRALIA BANK OF N EW SO U T H W ALES E S T A B L IS H E D (W ith 1817 w h ic h a r e a m a lg a m a t e d T H E W E S T E R N A U S T R A L I A N a n d T H E A U S T R A L I A N B A N K O F C O M M E R C E L t d .) P A I D -U P C A P IT A L .................................................................................................... £ A R E S E R V E F U N D ........................................................................................................... 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 ......................................... RANK 8 ,7 8 0 ,0 0 0 6 ,1 5 0 ,0 0 0 8 ,7 8 0 ,0 0 0 £ A 2 3 ,7 1 0 ,0 0 0 Aggregate Assets 30th September, 1934, £ 111,512,302.0.11. A G E N T S— F IR S T N A T IO N A L BAN K, OM AHA, N EBRASKA H E A D OFFICE, GEORGE ST., S Y D N E Y https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis GENERAL M ANAGER, ALFRED CHARLES D A V ID S O N LONDON OFFICE, 29 T H R E A D N E E D L E ST., E. C. 2 7 1 0 B r a n e h e s a n d A g e n c i e s in A l l A u s t r a l i a n S t a t e s , F e d e r a l T e r r i t o r y , N e w Z e a la n d , F i j i , P a p u a , M a n d a te d T e r r it o r y o f N e w G u in e a a n d L o n d o n 22 Central Western Banker, June, 1935 M r. Byers has a very large acquaint ance among bankers throughout the mid dle west, who will be very much inter ested to know of his return to the busi ness in which he was engaged for so many years. Mortgage An old Negro had just paid the last installment on a small farm when the realtor who sold it to him said: “ W e ll, Uncle Joe, 1 will make you a deed to the farm now since it has been paid for.” “ Boss,” the old darky replied, “ if it am all de same to you I had much rather you would give me a mortgage to de place.” T h e realtor, somewhat surprised, said : “ Uncle Joe, you don’t seem to know the difference between a mortgage and a deed.” “ W ell, maybe not,” said Uncle Joe reminiscently, “ but I owned a farm once and i had a deed and de Fust National Bank had a mortgage, and de bank got de farm.” Bankers Urge Changes In a letter sent recently to all its 12,000 members by the American Bankers Association, criticizing several features in Titles I and II of the pending House Banking and Currency Committee’s new draft of the Banking A ct of 1935, it is declared that “ we expect to oppose vig orously those sections which we do not consider to be in the interest of the pub lic or of the banks.” T he communication, signed by R. S. Hecht, president of the association, on behalf of its national officers, states that the bankers’ representatives have “ en deavored to take a constructive position in helping to enact effective and w ork able banking legislation.” T his position was presented in a detailed set of recom mendations to the House committee in M arch, the letter says. Commenting on the letter, M r. Hecht said that, while there had been no change in the general policy of the asso ciation to cooperate wholeheartedly with the Administration in developing desir able banking legislation, “ we find it our duty to disagree actively, and we hope effectively in respect to the points raised in our letter, and w ill try to get C on gress to see them our way.” Year Book T he third annual year book of the Trust Division, American Bankers A s sociation, has been issued, containing the proceedings of the mid-winter trust con ference held in N ew Y ork in February, 1935, the proceedings of the Pacific Coast and Rocky M ountain States trust conference held in San Francisco in N o vember, 1934, and the proceedings of the annual meeting of the Trust D ivi sion held in Washington, D . C., in O c tober, 1934. T h e book presents a composite picture of important trends and events affecting trust institutions during the association 3'ear 1934-35. T h e specific subjects discussed in the hook are: T rust Department Examina tions, T rust Administrative Principles and Policies, Federal Legislation, T rust Investments and T rust Business - G en eral. Copies may be obtained at $2.50 from the Trust Division, American Bankers Association, 22 East 40th Street, N ew Y ork City. Twenty-five Years T h e Chase Bank in Paris, as successor to T h e Equitable Trust Company, last month celebrated the twenty-fifth anni versary of the date in 1910 when its o f fice was opened as the first branch of an American commercial bank in Paris. In its early days the office functioned principally as an information and travel bureau for tourists from the United C entral T y p ew riter E x c h a n g e , Inc. J ) i j I (EST. 1903) new and r e b u il t t y p e w r it e r s , a d d in g m a c h in e s , check WRITERS — FULLY GUARANTEED, REBUILT MIMEOGRAPHS, STENCILS AND INKS LOWEST PRICES ALLEN-WALES 1820 Farnam St. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE FINEST “ HEAVY DUTY” ADDING MACHINE MADE Omaha, Nebraska States. W ithin a year or two, however, its activities were broadened to include a general banking business in order to meet the demands of American business concerns and travelers. Since that time the business has enjoyed a steady growth and the bank has two branches in Paris — one housed in its own six-story build ing at 41 Rue Cambon in the center of Paris and an uptown branch in the resi dential and hotel section at 29 Avenue George V . These branches are under the supervision of Joseph J. Larkin, execu tive vice president. W inthrop W . Aldrich, chairman and president of the Chase Bank of N ew Y ork, sent a congratulatory message to the staff in Paris on the anniversary oc casion. Official Lists Recent American Bankers Association appointments and elections are an nounced as fo llo w s: President R. S. Hecht has named Dan V . Stephens, chairman of the board and president, Stephens National Bank. Fre mont, Nebraska, a member-at-large of the Executive Council to succeed Eu gene R. Black, deceased; Thomas D. Brabson, president, First National Bank, Greenville, Tennessee, state vice presi dent to succeed Thom as P. Summers, resigned; E. E. Soulier, president, First National Bank of Lafayette, Louisiana, state vice president for Louisiana. M r. Hecht has also appointed W illiam C. Potter, chairman of the board, Guaranty I i ust Company, N ew York, chairman of the Foundation Trustees. Fred M cCartney, vice president, First National Bank, Oakes, North Dakota, has been appointed member of the Ex ecutive Council to serve until the meet ing of the American Bankers Association members at the next annual meeting of the state bankers association. This is due to the increased membership in North Dakota whereby it is again entitled to representation on the Executive Council. W . R. M cGaughey, member of the Executive Council from Illinois, mem ber of the Committee on State Legisla tion and state chairman of the Federal and State Legislative Councils, has re signed and W illiam G . Edens, vice pres ident, Terminal National Bank, Chica go, has been appointed successor to M r. M cG aughey as Executive Council member. He served until the meeting of the American Bankers Association mem bers at the convention of the Illinois Bankers Association at Decatur, M ay 20-21. N ew 1935 N ebraska-Iow a Bank D irectory . . . (P u b lish ed by the D eP uy P u blication s, in cluding the C E N T R A L W E S T E R N B A N K E R , Omaha, and the N O R TH W E STE R N B A N K E R , D es M oines) HE NEW 1935 EDITION of the Nebraska-Iowa Bank Directory will soon be ready for distribution. In it you'll find the most complete and latest informa tion on Nebraska and Iowa banks, including person nel, capital, surplus, deposits, loans and discounts, bond holdings, correspondent banks and other valu able data. T The Directory Contains . . . • Complete list of a 11 Association Officers. Because of the many changes in banking figures and personnel during the past few years, the new 1935 Ne braska-Iowa Bank Directory will be most valuable to every banker in those states. Be sure to order a copy of this directory, so that you may have up-to-date in formation on your desk. • L a t e s t official personnel of all Nebraska and Iowa Banks. Unless you've already done so, send us your order at once for the number of bank directories you'll need for your organization. • All material ob tained d i r e c t from the banks. Price, $2*00 Per Copy Unless You've Already Ordered, Then . . . Use This Blank to Order Copies CENTRAL W ESTERN BANKER, 410 Arthur Bldg., Omaha, Nebraska Gentlemen: Please send, when published,_________ copies of your 1935 Nebraska-Iowa Bank Directory. We will remit at the rate of two dollars per copy, upon receipt of the Directory. Name Town https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -----------------------------------------------------Address____________________________ State https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis
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