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N O V EM BER
19 3 0
Complete Program for
Nebraska Convention
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Page
Welcome to
Omaha
We will be glad to see you
when you come to the an
nual c o n v e n t i o n of the
Nebraska Bankers' Associ
ation November 6 and 7.
It will be a pleasure to meet
you, to greet old acquaint
ances and make new friends.
N ebraska’s Oldest B a n k
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Federal Reserve Bank of St. Louis
First National
I Bank of O m aha
FIRST TRUST COMPANY
3
Central W estern Banker, November, 1930
CENTRAL WEETERN BANTER
410 ARTHUR BUILDING
OMAHA
C l if f o r d D e P u y , P ublisher
G e r a l d A . S n id e r , A ssociate P ublisher
R . W . M o o r h e a d , E d ito r
L . D . V a n D o r a n , A ssociate E dito r
W m . H . M a a s , 1221 F ir s t N a tio n a l B a n k B ld g ., C h ic ag o . V ice-P resident
F r a n k P . S y m s . 25 W e s t 4 5 th S tr e e t, N ew Y o rk , V ice-P resident
F r a n k S. L e w i s , 840 L u m b e r E x c h a n g e , M in n e a p o lis
S u b s c rip tio n , 25 c e n ts p e r c o p y ; $2.00 p e r y e a r.
V
o l
.
E n te r e d a s s e co n d -class m a tte r a t th e O m a h a postoffice.
N o v e m b e r , 1930
25
N u m b e r 11
A British Optimist's Advice to the U .S .—and Us
By
H erbert
N.
C asson
LONDON, ENGLAND
HU SAN F R A N C ISC O earthquake,
if 1 may use that forbidden word,
cured hundreds of cripples. They
jumped up and ran for their lives.
They weren’t so badly crippled as they
thought they were. They didn’t know that
they could run until their houses began to
shake.
The Good Book, too, tells the story of a
cripple whose weakness was more in mind
than in his legs. The Master said to him:
“ Rise, take up thy bed and walk." He rose
and walked and carried his bed.
So, here is the thought that I would like
to send to the business men of America :
“ You are depressed. You think you are
crippled. You are afraid of the future.
You are full of fears.
“ You have half the gold of the world
and half of the machinery and most of the
automobiles and all the skyscrapers.
“ You have the greatest home market in
the world and the largest corporations the
world has ever seen.
“ You are ruled more by ideas and less
by tradition than any other people in the
world. You have usually done what you
thought you could do.
“ How can it be possible that a progres
sive nation of 120,000,000 people can be
wrecked by the speculations of a little
handful of fools in Wall Street?
“ The prices that were forced too high
had to come down. Today all the prices
are too low.
“ There is now a golden opportunity for
every man who has eyes to see it.
T
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Federal Reserve Bank of St. Louis
“ Dollars are now being sold for thirty
cents. Practically every security in the
United States is now being sold at less
than its value.
“The way to create a fortune is to buy
from pessimists. Pay your money and take
the risk.
“ Frick started his career by buying coke
ovens in the slump of 1873. Carnegie made
$300,000,000 by buying steel plants in
slumps.
“ Hundreds of fortunes have been made
by buying from pessimists. Ye gods!
What chance there is at the moment!
“ In five years from now, most Ameri
can business men will belong to the I-wishI-had Club.
T -v—
“ Then it will be too late to buy a dollar
for thirty cents. The opportunities will be
gone.
“When a horse balks, the balk is in his
head, not in his legs. He moves on when
he thinks he will.
“And when an American business man
is depressed, the slump is in his head.
There is nothing serious to prevent him
from making money if he thinks he will.
“When Fear rules the will, nothing can
be done, but when a man casts Fear out of
his mind the world becomes his oyster.
“ To lose a bit of money is nothing, but
to lose hope— to lose nerve and ambition
-— that is what makes men cripples.
“ This silly depression has gone on long
enough. Get rid of it. It is inside of you.
“ R ISE A N D W A L K .”
4
Central W estern Banker, November, 1930
Comp/efe
T
H E PR O G R A M for the thirtythird convention of the Nebraska
Bankers Association, which is to
be held in the Fontenelle Hotel, Omaha,
on November 6 and 7th, is practically
completed, and from the alignment of
speakers, the members of the Associa
tion and their guests are assured of a
constructive and instructive two day
session.
The registration desk on the mez
zanine floor of the Fontenelle Hotel
will be open from five o’clock on W ed
nesday evening throughout the session.
There will be no session of the general
convention on Thursday morning, the
program starting promptly at 1 :30 in
the afternoon. The three business ses
sions of the convention will be held in
the ballroom of the Fontenelle Hotel.
Besides the entertainment on both
T hursday and Friday evening, an ex
cellent program has been arranged for
the visiting ladies. An afternoon tea
will be featured on Thursday and in
the evening tickets will be supplied for
one of the local theatres to be followed
by an informal dance. Friday evening
arrangem ents have been made to at
tend the Horse Show at the Ak-SarBen Coliseum.
P rogram fo r
N ebraskaC otreention
The complete program of the con
vention follows :
Thursday Afternoon, N ovem ber 6th
Ballroom, Fontenelle Hotel
1:30—CALL TO O R D E R — By
President M athers
Riley, Cashier State Bank of
Hastings
2:45— B A N K M A N A G E M E N T
CONFERENCE
A D D R E SS— “Float Charges”
— By W. L. Brooks, President
N orthern National Bank, Bemidj'i, Minnesota
A D D R E S S — “Know Y our
Costs—Then Sell Y our Serv
ice at a P rofit” — By W . E.
Devlin, President Devlin and
Benneto, Chicago
D IS C U S S IO N
A P P O IN T M E N T O F
C O M M IT T E E S —
Auditing Resolutions Nominations
Friday Morning, N ovem ber 7th
Ballroom, Fontenelle Hotel
W A L T E R E. D E V L I N
9:40— CALL TO O R D E R A N D
ANNOUNCEM ENT OF
C O M M IT T E E S — President
M athers
9 :45—A D D R ESS — ‘‘B a n k in g , a
Learned Profession”— By O.
P. Cordill, A ssistant Cashier,
Federal Reserve Bank, Om a
ha
o f D e v l i n & B e n n e t t , I n c . , C h i c a g ’o, w h o
w ill a d d r e s s t h e N e b r a s k a c o n v e n t io n on
t h e s u b j e c t , “ K n o w Y o u r C o s t s — T h e n S e ll
Y o u r S erv ice a t a P ro fit.”
F O R D E. H O V E Y
p r e s id e n t , O m a h a C learing- H o u s e A s s o c ia
tio n , w h o w ill d e liv e r th e a d d r e s s of w e l
c o m e a t th e N e b ra s k a co n v en tio n .
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Federal Reserve Bank of St. Louis
1 ;30— IN V O C A T IO N — V ery Rev.
Stephen E. McGinley, Dean,
Trinity Cathedral
1 :35—A D D R ESS O F W E L C O M E
— By Ford E. Hovey, Presi
dent Omaha Clearing House
Association
1 :45—R E S P O N S E — By W. B. Ban
ning, Cashier Bank of Union
2:05—A N N U A L A D D R ESS O F
T H E P R E S ID E N T , A. N.
M athers, President Gering N a
tional Bank
2 :30—R E P O R T O F T H E S E C R E
T A R Y — ( P rin ted ) — By Wm.
B. Hughes
2 ;30—R E P O R T O F T H E T R E A S
U R E R — (P rin te d )— By Den
man Kountze, Vice President,
F irst National Bank of O m a
ha
2 :30—R E P O R T O F T H E E X E C U
T IV E C O U N C IL — By O. A.
A LV IN
E. JO H N S O N
vice p re s id e n t, L iv e S to c k N a tio n a l B a n k ,
O m aha, c h a irm a n of th e G en eral C o m m it
te e fo r th e N e b ra s k a c o n v en tio n .
Central W estern Banker, November, 1930
Insurance Safeguard
Against Want
K):00— A D D R E S S — “W hy Is a Mil
lionaire?’’—By M. A. Kendall,
Vice President Farm ers De
posit National Bank, P itts
burgh, Pa.
1 0 :45—A D D R E SS — “ Backward W e
Look, T hat Forw ard W e May
See”— By W alter W . Head,
President Forem an-State N a
tional Bank, Chicago
Friday A fternoon, N ovem ber 7th
Ballroom, Fonienelle Hotel
2:00—E L E C T IO N O F N E B R A S
KA O F F IC E R S F O R T H E
A M E R IC A N BA N K ERS’
A S S O C IA T IO N — By Mem
bers of that Organization, J.
M . Sorenson o f Frem ont,
T IF E
IN S U R A N C E supplies the
^ minimum of protection necessary
as a safeguard against actual want,
and also a reserve of capital which is
necessary in the financial affairs of
any man or woman of business, whe
ther it be large or small.
H A R L E S R . H O L D E N , V ic e -P r e s
id e n t o f th e F ir s t N a tio n a l B a n k
o f C h ica g o , h a s g iv e n to th e r e a d e r s
o f th is m a g a z in e an e x c e p tio n a lly fin e
a n d sc h o la r ly a r tic le on L ife I n s u r
C
ance.
M r. H o ld e n d e sig n e d th e first
fu n d e d in su r a n c e tr u s t a g r e e m e n t
w h ic h w a s s u b m itte d to te n g e n e r a l
s o lic ito r s a n d a f t e r c o n sid e r a b le
th o u g h t th e in su r a n c e c o m p a n ie s fin
a lly ap p ro v ed . T h e L ife In su r a n c e
T r u st, u n d e r h is su p e r v isio n , w h ile
V ic e -P r e s id e n t o f th e U n io n T r u st
C om p any, m a d e tr e m e n d o u s str id e s.
M r. H o ld en is P r e s id e n t o f C h ica g o
U n iv e r sity , a g r a d u a te o f Y a le U n iv e r sity , and N o r th w e s te r n L a w S c h o o l,
a d m itte d to th e b a r in 1 8 9 3 an d b e
c a m e a n official o f th e U n io n T r u st
C om p an y in 1 9 1 4 . H e is a m e m b er o f
th e A m e ric a n B a r A s so c ia tio n a s w e ll
a s th e I llin o is S ta te and C h ic a g o B a r
A s so c ia tio n s , e x -P r e s id e n t o f th e C h i
c a g o C rim e C o m m issio n , a n d is on
th e a d v iso r y h o a rd o f th e Y o u n g
M en ’s C h r istia n A s so c ia tio n . H e is a
m e m b er o f th e C h ic a g o A s so c ia tio n
o f C om m erce, th e U n io n L e a g u e C lub,
K n o llw o o d C o u n t r y C lub, S o u th
S h o re C o u n try C lub, L a k e S h o re A th
le tic C lub, th e R o ta r y an d th e Q u a d
r a n g le .
W A LTER W. HEAD
presid en t, F o re m a n -S ta te N a tio n a l B an k ,
C hicago, f o r m e r N e b r a s k a b a n k e r, w h o
w ill r e t u r n “h o m e ” t o a d d r e s s N e b r a s k a
b a n k e r s o n t h e s u b j e c t , “B a c k w a r d W e
L o o k t h a t F o r w a r d W e M a y See.”
State Vice-President for the
A.B.A., presiding
2 :15—A D D R E SS — “Your B ank’s
Pulse”— By J. V. W ebster,
Cashier F irst National Bank,
Chadron
2 :35—A D D R E SS — “The Financial
Situation”— By Dr. B. M. A n
derson, Jr., Economist Chase
National Bank, New York
City
3:20—A D D R E S S — “ T h e F a rm
B oard’s Problem s”— By A lex
ander Legge, Chairman, F ed
eral F arm Board
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Federal Reserve Bank of St. Louis
Banks and insurance companies have
joined in recent years in seeking to
have people realize that life insurance
should be more than a mere incidental
m atter; that it should not be limited
to merely caring for the expenses in
cident to a last illness and interm ent;
for a sound savings and business pro
gram m ust build up a reserve, avail
able to realize cash in case of need,
and available to carry on and protect
one’s business and family in case of
death.
W hen this view of life insurance re
quirements is clearly appreciated, you
see at once the value of a trust to re
ceive and supply the proceeds of life
insurance.
It is frequently said that about nine
ty per cent of all life insurance pro
ceeds paid over to beneficiaries is
spent and gone within seven years, on
the average. Very often this fact is as
sumed to prove that in such a large
percentage of cases the proceeds of
life insurance are w astfully used.
W hile it is true that the receipt of a
considerable lump sum of money often
tempts inexperienced beneficiaries to
make extravagant expenditures or unvise speculations, it is also true that
C h a r l e s R. H ol den
in too many cases the funds so pro
vided are simply insufficient.
It is very difficult for a family where
the earner has provided an income of
six thousand dollars a year, to come
down on the death of that earner to
one or two thousand dollars a year.
Thus it happens quite inevitably
that if only fifteen or twenty thousand
dollars of life insurance constitutes
about the only estate left by such
earner, the principal will be used by
the family, for the income alone would
be only one-sixth of the family income
prior to the death of the earner.
O f course, in some families such
application of a principal sum over a
period of five to ten years may tide
over the years when children are com
pleting their education, and bring the
family to the point where their earn
ings will have become an adequate
source of livelihood. If such a mere
emergency provision for a compara
tively short period is actually all that
( C o n tin u e d o n p ag e 17)
6
Central W estern Banker, N ovem ber, 1930
^ o u r ^egal Questions
of (interest to ja n k e rs
A South Dakota Assignm ent
S O U T H D A K O T A customer
owed a South Dakota bank near
ly $5,000, made an assignment
for the benefit of his creditors who
should sign the assignment agreement,
and the agreement authorized the as
signee to continue the business.
None of the creditors signed this
agreement, but the assignee took over
the business, opened an account with
the same bank in his own name as
“trustee,” had a credit balance of over
$1,000, and the bank applied practical
ly all of this amount on the custom er’s
indebtedness.
Then the customer went into bank
ruptcy, and the trustee in bankruptcy
claimed the amount of the deposit
from the bank.
“The money was not deposited in
the name of the customer, but in the
name of the trustee, and the bank had
no right to credit it on the custom er’s
notes,” the trustee in bankruptcy
claimed, but the United States Circuit
Court of Appeals ruled in favor of the
bank.
“The first trustee had no personal
interest in the funds on deposit in the
bank, and he represented no one with
respect to such funds except the custo
mer. H ad the customer continued to
carry on business personally, it is well
settled that the bank would have the
right to make the setoff,” the court
said.
A
A Colorado Collection
COLO RA D O customer, who owed
a Colorado bank a note for $1,625, opened his mail one sunny Colo
rado morning, found therein a check
for $722.25, endorsed the check, and
delivered it to the bank, with instruc
tions to “apply on my note.” The cash
ier promptly endorsed the amount of
the check on the note, endorsed the
check to a National Bank in Denver,
the National Bank endorsed it to the
Federal Reserve Bank, the Federal
Reserve Bank sent the check to the
bank on which it was drawn, and that
bank paid by a draft on the X bank.
The d raft on the X bank was not
paid, as the drawee bank had closed its
doors in the meantime.
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Federal Reserve Bank of St. Louis
By M. L. HAYWARD
“The jury resolved the m atter in
the custom er’s favor. Their verdict
amounted to a finding that the bank
was, in fact, the owner of the note.
A fter an examination of the record,
we cannot say that such verdict is not
supported by the evidence. On the
contrary, their verdict ■seems to be
supported by competent' evidence inso
far as it had the effect of finding that
the bank was the owner of the note,”
the court said.
The Colorado bank, which had re
ceived the check originally, without
giving the customer all the facts, took
a new note from the customer to
cover the amount of the check which
had been endorsed on the old note,
and, later on, sued the customer on the
new note.
“You accepted the check as payment
on the first note, it makes no differ
ence that the check was not paid, and
there was no consideration for the
new note,” the customer contended,
while the bank maintained that it had
accepted the note merely “ for collec
tion.”
“The vital question, then, i s : W hat
was the contract between the customer
and the bank on delivery of this
check? It is evidenced solely by the
written words ‘apply this check on
note.’ These words are consistent with
either theory of the case. They may
mean ‘apply this check in payment ori
note’ or ‘apply this check on note when
collected.’ Consequently we must log
ically say that the presumption that it
was not in payment has not been over
come, and it must be said to have been
taken for collection,” said the Colo
rado Court in deciding in favor of the
bank.
D E C E M B E R 30 the treasurer
of a Colorado city received a
check on a Colorado bank— and the
treasurer was also the cashier of the
same bank.
At that time the bank was in a fail
ing condition—and the treasurer-cash
ier knew it.
The bank was open on December 31,
but the treasurer neglected to present
the check. January 1 was a holiday, the
bank failed to open on January 2, and
the city could not collect the check
from the maker, because it had not
been presented in due time.
“You are bound to make good the
resulting loss,” the city contended, and
the Colorado courts ruled that the
treasurer had to make good the result
ing loss, in a case reported in 137 P a
cific Reporter, 899.
Usury and the Oklahoma Bank
“Is N ot Transferable”
/V N O K L A H O M A customer had
paid an Oklahoma bank $166.50
interest on a note, and sued the bank
for $333, on the ground that the inter
est was usurious.
“W e were not the owner of the
note,” was the bank’s defense, when
the case came to trial.
“The president of the bank told me
that the bank owned the note,” the
customer swore, and put in evidence a
receipt stating that the bank was the
owner of the note, and signed by an
attorney whom the bank had employed
to collect it.
On this evidence the jury decided
against the bank, and the verdict was
upheld by the Oklahoma Supreme
Court in a case reported in 246 Pacific
Reporter, 478.
A Colorado Cashier
A K A N SA S
note, given for an in
surance premium, stated that, “it
is hereby understood and agreed that
this note is not transferable.” The
payee transferred the note to a Kansas
bank, the m aker refused to pay, and
the bank sued.
“The note states on its face that it
is non-transferable, and nobody can
sue me but the payee,” was the m ak
e r’s defense.
“You can set up against us any de
fense that you could have set up if
sued by the payee, you are not p reju
diced, and the court will uphold our
right to sue,” the bank argued, and
the Kansas Supreme Court upheld this
contention in a case reported in 240
Pacific Reporter, 398.
( C o n tin u e d o n p ag e 30)
Central W estern Banker, November, 1930
7
A Uniform Method
o f fig u rin g Interest
On Savings Accounts
O B E G IN actual calculation on
the account, the first thing to do
is to find the lowest balance in
the period. T hat enables us, with many
accounts, to perhaps skip several
months during which the balance has
been decreasing, the deposits therefore
not remaining until the end of the pe
riod. The lowest balance, of course, is
allowed interest for the full six months.
W e then follow down the balance col
umn until we find the next lowest bal
ance appearing in a later month. A f
ter calculating the increase between
these two amounts, we determine
when the deposit was made that
brought the increase, then allow in
terest on the increase for the rest of
the period from the proper first of the
month. This process is repeated until
the last month of the period has been
reached.
T
T he sm allest balance is found on
Jan u ary 1st, $800.00, which receives
interest fo r six m onths........................... $16.00
The next smallest balance is $817.00,
from which we should deduct the last
used balance of $800.00, leaving an
increase of $17.00. Since this increase
comes from the deposit of Jan u ary
10, of $210.00, it will receive five
m onths’ interest..............................................28
The next sm allest balance is $852.00,
from which we subtract $817.00, leav
ing an increase o $35.00, which is all
that rem ains of the F eb ru ary 28 de
posit of $210.00. H ence $35.00 will
receive interest from M arch 1st, or
four m onths......................................................47
The next sm allest balance in a suc
ceeding m onth is $1435.00. By sub
tracting $852.00 we have an increase
of $583.00 which draw s interest fo r
one m onth........... ........................................ 1.94
T otal interest........................................ $18.69
M E T H O D NO. 2
(U sed by 139 Banks)
Interest is to be compounded and
credited semi-annually and is to be
paid from the first of each month on
all sums remaining in the bank until
the end of a semi-annual period, pro
vided they have been on deposit for at
least one calendar month preceding
the semi-annual interest date. Depos
its made after the first of each month
will draw interest from the first of the
following month. W ithdraw als are
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Federal Reserve Bank of St. Louis
By W. H. DRESSLER
Cashier, Stock Yards National Bank
South Omaha, Nebraska
PART II
to be deducted from first deposits. No
interest will be allowed on w ithdraw
als made during the six months pe
riod.
U nder this m ethod we first add all
w ithdraw als in the interest period,
which am ount to $2145.00 and take the
am ount from the first deposits of the
period. This cancels all deposits made
up to A pril 6th, except $142.00 of the
$450.00 deposit on that date. By add
ing the $142.00 to the A pril 10th de
posit of $210.00, we have $352.00 that
receives interest fo r two m onths........... $2.34
The M ay 28 deposit of $300.00 and
June 1st deposit of $483.00 added to
gether make a total of $783.00 that re
ceives interest fo r one m onth................. 2.61
T he $300.00 deposit of June 10th is
on deposit fo r less than a calendar
month, hence draw s no interest.
T otal in terest................. -...................— $4.95
M E T H O D NO. 3
(U sed by 129 Banks)
This is known as the minimum
monthly balance method, and interest
is compounded semi-annually.
The minimum balance in each of
the six months follow s:
Jan u ary ..... $
F ebruary ....
M arch ........
A pril ..........
M ay ...........
June .............
800.00
817.00
1012.00
1012.00
852.00
1435.00
M E T H O D NO. 5
(U sed by 62 Banks)
Interest is to be compounded and
credited semi-annually and is to be
paid from the first of each month on
all sums on deposit for six months.
No interest on withdrawals. W ith
drawals are to be deducted from first
deposits. If any interest is earned in
the six months period, it is payable at
the end of the next six months period,
if account has not been withdrawn.
Since the w ithdraw als of $2145.00
exceed the deposit of Jan u ary 1st,
there will be no interest on this ac
count.
M E T H O D NO. 6
(U sed by 26 Banks)
(Also recommended by Savings Bank
Division, A.B.A.
U nder this method, interest is to
be compounded and credited semi-an
nually, and is to be paid from the first
of each month on all sums remaining
in the bank until the end of a quar
terly period, provided they have been
on deposit for at least one calendar
month preceding the semi-annual in
terest date. Deposits made after the
first of the month will draw interest
from the latest deposits, if any, other
wise from the balance at the begin
ning of the quarter.
In looking fo r the smallest
balance in the first quarter, we
find on Jan u ary 1st, $800.00,
which earns interest fo r three
m onths ............................................... $8.00
T he n ext sm allest balance in a
$5928.00 -1-3 = 6 mos. Int. $19.76 later month of the q u arter is
$817.00. H ence the difference of
M E T H O D NO. 4
$17.00 earns interest fo r two
months, being all th a t rem ains
(U sed by 75 Banks)
U nder this method interest is fig from the deposit of $210.00 made
on Jan u ary 10th.................................... 11
ured on minimum balance for each
The next smallest balance in
quarter, but compound quarterly.
the q u arter is $1012.00, hence the
difference between this and the
In the first q u arter the minimum
last preceding balance of $817.00
balance is $800.00 which receives in
is $195.00, which earns interest
terest fo r three m onths........................... $ 8.00
fo r one month, being all that is
In the second q u arter the minimum
left from the deposit made on
balance is $852.00 which receives in
February 28th, of $210.00.................. 65
terest fo r three m onths......................... 8.52
Interest fo r first q u a rte r........... .........$ 8.76
By com pounding interest on $8.00
ond qu arter is $852.00, which reearned in the first quarter, we have
The sm allest balance in the sec$8.00 receiving interest fo r three
ceives interest fo r three months..$8.52
m onths .............................................................. 08
T he next sm allest balance in a
succeeding month is $1435.00. The
T otal interest....... ,.................................$16.60 difference between $1435.00 and
Central W estern Banker, November, 1930
8
A Dangerous Precedent
B y G. A . S N ID E R , A s so c ia te P u b lish e r , C e n tr a l W e ster n B a n k e r
HE Illinois Bankers Association has announced plans for
extending its operations beyond its state borders through
the medium of a bank publication, the Great Lakes Banker,
formerly the Illinois Bankers Association Bulletin.
On the front cover of the magazine is plainly displayed a
map, the bordering circle of which encloses most of this middle
western territory.
Nothing on the front cover would indicate that it was the of
ficial publication of a single state bankers association.
However, the index page tells us plainly that the Great Lakes
Banker was “formerly’9 the “Illinois Bankers Association Bulle
tin,” and the association secretary continues to be the “editor.”
A natural question, therefore, for interested bankers, and in
dependent banking magazines to ask, is “What is behind this pro
gram which is extending the influence of a state association’s
publication beyond boundaries of its own state?
It it a well known fact that no other state association pub
lishing an official association magazine has ever attempted to
extend the magazine’s influence by seeking circulation among the
member banks of other state associations.
If a desire for profit is behind this program, we must say that
many years’ experience in the publication of a banking magazine
would lead us to believe that the profit to be derived from the
“Great Lakes Banker” as an advertising medium reaching bank
ers, can hardly be the sole motivating force behind this most
recent venture sponsored by those who direct the activities of
the Illinois Bankers Association.
Perhaps we should not intimate that any selfish influences
are connected with the publication of this new association maga
zine.
Yet after all it is hardly conceivable that the editors of the
publication believe their particular knowledge of the banking
problems, existing in other states and territories, is so badly
needed by the banks of those sections that they must take this
means of making their counsel, experience, and banking vision
available through the official publication of the Illinois Bankers
Association.
We are of the firm opinion that the Illinois Bankers Associa
tion will be establishing a dangerous precedent if it continues
its plans for attempting to go outside of its own state borders
with its publication activities.
We question not only the association’s fairness in thus using
the influence of a great bankers’ association to compete with
other state association publications as well as with independent
magazines which for years have helped build the banking struc
ture of this country, and have supported the constructive activ
ities of state bankers associations, but also question the propriety
of the Illinois Bankers Association’s action in extending its influ
ence into other states and territories through the pages of the
Great Lakes Banker—its official publication.
And, unless we badly under-rate the judgment of the bankers
of the great state of Illinois, we further believe that this program
will not meet with the approval of the rank and file of the mem
bers of the Illinois Bankers Association.
T
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
$852.00 is $583.00, which earns
interest fo r one month. (T his
whole of the deposit m ade on
M ay 10th and $283.00 of the de
posit made on June 1st, are in
cluded in the $583.00)........... - ..... 1.94
In te re st fo r second q u arter.....
$10.46
In terest fo r 6 m onth period.
$19.22
M E T H O D NO. 7
(Recommended by Savings Bank
Division, A.B.A.)
Interest is to be compounded and
credited semi-annually and is to be
paid from date o f deposit on all sums
remaining in the bank until the end of
the quarterly period, provided they
have been on deposit for at least one
calendar month preceding the semi
annual interest date. W ithdraw als
are to be deducted from the latest de
posits, if any, otherwise from the bal
ance at the beginning of the quarterly
period.
S tartin g w ith the sm allest bal
ance in the quarter, we have
$800.00 which earns interest for
three full m onths.................. .......... $8.00
T he n ext sm allest balance in a
succeeding m onth is $817.00. The
difference betw een $817.00 and
$800.00 (preceding balance), is
$17.00, which is all th at rem ains
of the $210.00 deposit m ade on
January 10th. T his $17.00 earns
interest fo r two m onths and
tw enty-one days.................................... 15
T he n ext sm allest balance in
the first q u arter is $1012.00. T he
difference betw een $1012.00 and
$817.00 is $195.00, which is all
th at rem ains of the F ebruary
28th deposit of $210.00, and bears
interest fo r one m onth and three
days ..... ......................................- .......... 71
In terest fo r first q u arter........... ........ $ 8.86
T he sm allest balance in the
second q u arter is $852.00 on M ay
15th, and receives in terest for
three m onths..................................... 8.52
T he n ext sm allest balance is
$1152.00 on M ay 28th. H ence
$300.00, the difference between
$1152.00 and $852.00, earns in ter
est fo r one m onth and three
days ................................................... 1.10
T he next sm allest balance is
$1435.00 on June 22nd. The d if
ference between $1435.00 and
$1152.00 is $283.00, which is all
th at rem ains of the deposit of
$483.00 made on June 1st, hence
earns interest fo r one m onth__ .94
In terest fo r second q u arter..... .........$10.56
In terest fo r six m onth period-
$19.42
M E T H O D NO. 9
( Recommended by Savings- Bank
Division, A.B.A.)
Interest is to be compounded and
credited semi-annually and is to be
paid from date o f deposit on all sums
remaining in the bank until the end of
the semi-annual period, provided they
have been on deposit for at least one
calendar month preceding the semi
annual interest date. W ithdraw als are
( C o n tin u e d o n p a g e 29)
9
Central W estern Banker, November, 1930
Committee Reviews Public
Service Securities Situation
T
H E Public Service Securities
Committee of which F rank E.
Frothington is chairman, in its
report before the annual convention
held in New Orleans in October re
viewed the securities situation during
the past year insofar as it applies to
the public utility field.
W e are giving below a portion of
that re p o rt:
44 \
Y E A R AGO, at the time of our
last convention in Quebec, the
financial ship had all sail on, and the
crowding passengers could see near at
hand the promised land of easy and
large profits. Today the passengers
are re-rigging a dismasted ship, and
all the able-bodied have taken their
turn at the pumps. The promised land
for most was but a mirage after all.
“This country, the world, is now in
the throes of an afterm ath. It is a
world situation that is now in the
mending, and it is as inevitable as time
that the needs and energies of men
will in due course resurge into an era
of general prosperity, stabilized, let
us hope, by the remembrance of recent
experiences.
“W ith the collapse of the specula
tive markets, utility equities, more
particularly the holding company equi
ties, and bond prices also suffered a
decline. Demonstrations of intrinsic
values are, however, made by advers
ity. The utilities have stood the test
in remarkable fashion, the inherent
nature of the electric light and power,
the telephone, the street railway, the
gas. and w ater services being such
that they are affected more by their
own peculiar problems than by the
factors that general depression brings
to bear on industry as a whole. Peo
ple need and use, in good times and
bad, light, heat, water, telephone com
munication, local transportation. Those
are the services last given up and the
least curtailed. Adversity has at least
again demonstrated this oft-repeated
truth. The value of well issued se
curities on these properties (the pe
culiar present situation of the street
railways should perhaps exclude them
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
as a whole from this general classifi
cation) have proven their soundness.
“Stockmindedness has been givingplace to a more conservative view
point. The demand for utility bonds
has, since midsummer, markedly im
proved, and investors have seen their
confidence justified in buying senior
securities when a lethargy possessed
the m arket and all classes of securities
went without buyers. Again, advers
ity in the speculative field, which soon
er or later ignores sound principles
of value, but demonstrated anew that
these principles are perennial — oldfashioned and in the discard as they
sometimes seem to be— and that they
are the basis on which a new pros
perity must be built. It should be
pointed out, too, that the wise busi
ness foresight that raised immense
amounts of capital on junior securities
when the m arkets for them were fa
vorable has established the soundest
possible basis for senior financing,
now that the junior markets are less
available.
44rP H E R E W A S a sharp recession
1 of new offerings in these fields
after the panic of last year— Novem
ber of that year showing almost noth
ing new, December coming back to a
normal low month total, January and
May of this year, however, showing
higher peaks than for a long time. The
change in classification is, however,
noteworthy. The total of new capital
(exclusive of refunding) is reported
for 1928 (in round figures) as $1,710,000,000, for 1929 as $1,932,000,000;
but it is to be noted that long term
bonds and notes for 1928 were $940,000,000 against $654,000,000 for 1929,
that short term bonds and notes were
for the same years $114,000,000 and
$48,000,000 respectively, w h e r e a s
stocks increased from $757,000,000 in
1928 to $1,230,000,000 in 1929. The
effect of the m arket break in the lat
ter part of 1929, and the accompany
ing paralysis of business, is shown in
a comparison of the first seven months
of this year and last. These months
showed $444,000,000 of long term
bond and note financing in 1929, in
creased to $179,000,000, whereas
stocks decreased from $880,000,000 to
$655,000,000. This reversal of the
previous trend is the more notable if
it be recalled that the 1930 stock figure
includes some $215,000,000 of Am eri
can Telephone & Telegraph Company
stock as against none for the earlier
period.
“One of the ablest utility operators
in the country has recently remarked
that what the public utility companies
need now is sanity of operation based
on the knowledge that the business is
regulated and profits limited; that fiancial structure of the big holding
company groups should be simplified ;
that full and complete inform ation of
all intercompany transactions should
be given. The ‘sanity’ of these obser
vations is so patent that your commit
tee wishes to call special attention to
them and to stress them. W hile there
is a definite tendency toward the sim
plification of financial structure, many
of the groupings are still complicated
and involved beyond any apparent
reason or need. Your committee has
heretofore pointed out the advantages
to flow from simplicity in this direc
tion. Complication is not a necessary
corollary of size; in fact, the virtues
of simplicity of financial structure in
crease with size and shoud be con
stantly sought for as one of the great
est aids to fair m arket judgments of
values, and in the raising of cheap
money. There is a lurking feeling,
too, in the public mind that there is
something in the pyramiding process
not to its best interests. Bankers as
well as operators are at fault in this,
and we would particularly urge the
influence of the bankers tow ard the
correction of the existing confusion of
capita] structures. Your committee
has also referred in the past to the
dangers that lurk in the concealment
of intercompany transactions. Here
again we are glad to say there is a
growing recognition that these neces
sary and beneficial relationships should
be on the frankest basis to the end
that they may be removed from the
10
Central W estern Banker, November, 1930
category of public suspicion. Y our
committee refers here again to these
m atters because they seem so funda
mental in developing sound values
back of public utility securities as a
class.
t i r p H E E L E C T R IC light and power
industry has again shown its pe
culiar ability to withstand the shocks
of business depression. In the divers
ity of electric use, the wideflung avail
ability of electric service and the per
sistent penetration of electricity into
almost all of our needs, lies the ex
planation. In this industry earnings
have in some cases fallen off, in some
held their own, in most cases have in
creased, though at a lesser rate than
formerly. The very large industrial
load of many of the companies is the
prim ary cause of such decreases as
have occurred. Inherently, the busi
ness is sound, and operating company
securities remain in an enviable posi
tion. W ith the recovery of general
business, it may be anticipated that
the light and power industry will see
an expansion that will belittle anything
it has shown in the past, extraordi
nary as that past has been. The in
dustry as we know it is not yet thirty
years old, but its position and stabil
ity are such that senior securities on
its operating properties in many cases
rank with the premier rail bonds.
Lloyd Phillips Sells Interest
Lloyd Phillips, of Lloyd Phillips &
Co., Inc., investment brokers in F re
mont, Nebraska, has sold the control
ling interest in the company to L. E.
May so he can devote all of his time
in the Omaha office of Smith, Burris
& Company.
Mr. Phillips is executive vice-presi
dent of the Omaha branch of Smith,
Burris & Company and has been its
m anager since its organization last
July. This company is a central syndi
cate wholesaling C o r p o r a te T rust
Shares, Fixed T rust Shares and Cor
porate Industry Shares. Mr. Phillips
has been going back and forth but
will soon move his family to Omaha
and occupy a residence he recently
purchased.
Mr. May, who has been connected
with the Phillips company since its
organization, has been elected presi
dent and treasurer and Jam es R. H an
son succeeds May as vice president
Organize Investment Company
and is also secretary. Lambert Faltys,
Unusual interest is attached to the
who has been an official of the com
recent
announcement of the organiza
pany, has resigned.
Mr. Phillips retains an interest in tion of The American Securities Cor
the Frem ont company and will con poration at Chicago, with executive
tinue as a member of the board of di offices at No. 1 La Salle Street. This
rectors. Lam bert Faltys has not com corporation represents substantial midpleted his future plans and is to re western interests and will engage in a
main with the company for a few general investment business, serving
the public as well as certain affiliated
weeks to assist in the office work. At
financial interests.
the special board meeting Win. W.
(C o n tin u e d o n p ag e 22)
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Moore, who has been sales representa
tive, was made sales manager.
Lou May is widely known in F re
mont and had a long association with
the M ay Bros. Co. He has been in the
brokerage business nearly all the time
since leaving the grocery house, being
with H enry L. Doherty before joining
the Phillips organization. He has in
terests in a number of banks. He an
nounces there will be no change in the
corporate name of the firm for the
present and that the business will be
conducted as formerly.
Lloyd Phillips went to Frem ont in
1912. He was manager of the Frem ont
Gas Company, resigning in 1923 to go
to Lebanon, Pa., where he was in
charge of a gas company for the City
Service Co. He left the Doherty or
ganization in 1927 after 16 years of
service, to launch in business in F re
mont, and which he has conducted
successfully.
T he
l
C h a se N a t io n a l B a n k
o f the City o f N e w York
P ine S t r e e t
corner
of
N assau
\
:
»«
i:
Capital
. . . $ 148,000,000
Surplus and Profits
213,000,000
Deposits . . . 1,852,000,000
l
\
:
I he C hase N atio n al B ank invites
:
F . E. A D A M S
th e a c c o u n ts o f b a n k s , b a n k e r s ,
\
co rp o ratio n s, firm s and ind iv id u als.
:
»«
;
• T rust Department
\
The officer personnel is as follows :
Cecil E. Vesy, chairman of the board;
Fred E. Adams, president; and Guy
C. Ividdoo and Raymond A. Baur,
vice-presidents.
The corporation is directly affiliated
with the American Union Corpora
tion, of which W alter W. H ead is
president. This corporation owns and
is interested in numerous enterprises
of financial institutional character.
This recent step or the organizing of
General Banking
Foreign Department
................... .......................................................... Z = J
\
11
Central W estern Banker, Novem ber, 1930
N E W IS S U E
$3,500,000
Seaboard Continental Corporation
6% Guaranteed Convertible Gold Bonds, Series “A
D a te d S e p te m b e r 1, 1 9 3 0
D u e S e p te m b e r 1, 1 9 4 0
P r in c ip a l a n d s e m i-a n n u a l in te r e s t, M a rc h 1 a n d S e p te m b e r 1, p a y a b le a t th e B a n k e rs T r u s t C o m p a n y in N e w -Y o rk : C ity , o r C h ic ag o T r u s t C o m p a n y ,
C h ic ag o , Illin o is , w ith o u t d e d u c tio n fo r n o rm a l F e d e r a l I n c o m e T a x n o t e x c e e d in g 2 % p e r a n n u m
T h e C o r p o r a t i o n w ill a g re e to r e im b u r s e to a n y
h o ld e r o f b o n d s, u p o n p ro p e r a p p lic a tio n , a n y p e rs o n a l p r o p e r ty o r s im ila r ta x n o t e x c e e d in g 6 m ills p e r a n n u m a n d a n y ^ a te In c o m e T a x n o t
c e e d in g 6 % p e r a n n u m w h ich m a y be le g a lly a sse sse d u n d e r a n y p r e s e n t o r f u tu r e la w o f a n y s ta te o f th e U n ite d S ta te a n d p a id by^ a n y h o ld e r: by
re a s o n o f h is o w n e rs h ip th e re o f. R e d e e m a b le in w h o le o r in p a r t o n a n y in t e r e s t p a y m e n t d a te , a t th e o p tio n o f the^ C o rp o ra tio n ,_ o n i q 0 % to m alish e d n o tic e a t 103% to a n d in c lu d in g S e p te m b e r 1, 1936, th e r e a f te r a t 10 2 % to a n d in c lu d in g S e p te m b e r i lO IS a n d th e re a ^
m
tu r i ty , p lu s a c c ru e d in te r e s t in each case. C o u p o n B o n d s in te rc h a n g e a b le d e n o m in a tio n s o f $1,000, $500 a n d $100, re g is te r a b le as to p rin c ip a l o n ly .
C H IC A G O T R U S T C O M P A N Y , T r u s te e
C O N V E R SIO N P R IV IL E G E
E a c h b o n d w ill be c o n v e rtib le a t its p rin c ip a l a m o u n t, a t th e o p tio n o f th e h o ld e r p r io r to D e c e m b e r 1, 1939 o r e a riie r red em p tiio n ,
th e r e o f w ith all u n m a tu r e d c o u p o n s a tta c h e d in to u n its c o n s is tin g o f o n e s h a r e each o f P r e f e r r e d S to c k a n d C o m m o n S to c k o f th e C o r p o r a t o n a t
th e fo llo w in g r a t e s : O n o r o th e r D e c e m b e r 1, 1930, a n d o n o r b e fo re D e c e m b e r 1 1933 a t th e r a t e o f $100 p e r u n i t f o r ea ch $ 1 0 0 o f P " “ ?1* « 1
a m o u n t; th e c o n v e rs io n p ric e in c re a s in g $5.00 p e r u n it o n D e c e m b e r 2, 1933 to a n d in c lu d in g D e c e m b e r 1, 1936 a n d an¡ a d d i tio n a l.? S-00
u n it to
D e c e m b e r 1 193 9 ' w ith a d ju s tm e n t o f in te r e s t a n d c a sh d iv id e n d s ; s c rip to be is s u e d f o r fr a c tio n s o f a s h a re , o r m lie u th e r e o f , th e C o r p o r a tio n a t
its o p tio n m ay p ay ca sh eq u a l to th e ex c ess p rin c ip a l a m o u n t. T h e I n d e n t u r e w ill c o n ta in p r o v is io n s d e s ig n e d to p r o te c t th e c o n v e rs io n p riv ile g e
o f th e b o n d s a g a in s t d ilu tio n by a d ju s tm e n t o f th e c o n v e rs io n p ric e in c e rta in e v e n ts .
Capitalisation:
The capitalization of the C orporation, a fte r giving effect to this financing, will be as follow s:
A u th o r iz e d
G u a r a n te e d C o n v e r tib le G old B o n d s, 6% S e r ie s A , d u e S ep t. 1, 1 9 4 0
( t h is is s u e ) ..........................................................................................................
$ 3 ,5 0 0 ,0 0 0
P r e fe r r e d S to c k ( $ 6 d iv id e n d , n o p a r v a l u e ) .................................................... 2 0 0 ,0 0 0 sh a r e s
C om m on S to c k (n o par v a l u e ) .................................................................................. 4 0 0 ,0 0 0 sh a r e s
O u tsta n d in g
$ 3 ,5 0 0 ,0 0 0 *
1 0 ,0 0 0 sh a r e s
2 0 0 ,0 0 0 sh a r e s
» T h e se b o n d s , in th e o p in io n of- c o u n s e l fo r th e C o rp o ra tio n , a re le g al in v e s tm e n ts fo r n a tio n a l b a n k s .
T h e re w ill be re s e rv e d su fficien t s h a re s o f P r e f e r r e d a n d C om m on S to c k to p ro v id e a g a in s t th e e x e rc is e o f th e c o n v e rs io n p riv ile g e
o f all a u th o riz e d b o n d s o f th is a n d a n y f u tu r e s e rie s.
.
, ,
_
.
,
T h e P r e f e r r e d s to c k is re d e e m a b le in w h o le o r in p a r t o n a n y in te r e s t p a y in g d a te on o p tio n o f th e C o rp o ra tio n o n 60 d a y s p u b
lish e d n o tic e a t $100 p e r s h a re a n d a c c ru e d d iv id e n d s a n d is c u m u la tiv e a t th e a n n u a l r a te o f $6.00 p e r s h a re . I n th e eve t
a n y d is tr ib u tio n o f th e a s s e ts o f th e C o rp o ra tio n th e P r e f e r r e d sto c k w ill be e n title d to $100 p e r s h a re a n d a c c ru e d d iv id e n d s b e
fo re th e C o m m o n sh a ll p a rtic ip a te .
M r. R o m a in e A . P hilpot, P resid en t o f the Corporation, has sum m arised his letter to the bankers, in part as follo w s:
H istory and Business: Seaboard C ontinental Corporation, a D elaw are corporation, was organized in A ugust, 1930, to carry on
the business of an investm ent tru st of the general m anagem ent type. Its form ation was preceded by a thorough investigation
and analysis of the operating methods of A m erican and B ritish investm ent tru sts of this type The Corporation is able to
afford purchasers of its securities the protection of expert selection and supervision and broad diversification of interests to a
degree not available to the individual investor. T he C orporation will acquire, hold, sell, underw rite securities, participate m
underw ritings of securities and acquire such securities and exercise such other of its charter pow ers as the B oard ot D irectors
may from tim e to tim e determine.
Guarantee: These Bonds will be the direct obligation of the Seaboard Continental C orporation and will bear the joint and
unconditional guarantee endorsed directly on each bond, of L loyd’s Casualty Company of N ew Y ork and the re d e ra l burety
Company of D avenport, Iowa, to pay the legal holder the principal and interest when due w ithout any period of grace or ex
tension of time as to principal or interest. T he combined resources of the g u arantor companies exclusive ot the collateral
deposited with them against this issue exceeds $10,000,000.
M anagem ent: The B oard of D irectors in whose hands the m anagem ent of the C orporation lies consists of representative
bankers who have been connected w ith outstanding financial institutions, enabling the C orporation to benefit from the know l
edge acquired by those institutions in the proper selection of an investm ent portfolio, th e D irectors a re .
F R A N K 15F ,ItY V I Y
O rv is B ro th e rs & C o., M e m b e rs N ew Y o rk S to c k E x c h a n g e
B E R T R A N D U. B U R B A N K
N ico l, F o r d & C o., M e m b e rs N ew Y o rk S to c k E x c h a n g e
W . W . CORLETT
A tto rn e y -a t-L a w , C h ic ag o
C H A R I E S T, C U L P E P E R
P r e s id e n t, C o ca-C o la B o ttlin g Co. o f N ew Y o rk
J . K E N N E T H E D L IN
P r e s id e n t, P r o v id e n t S ta te S e c u ritie s C o m p a n y
JO E L STO C K A R D
P r e s id e n t, J o e l S to c k a rd & C o., In c ., M e m b e rs D e tr o it S to c k E x c h a n g e
S A M U E L S. L E R I V E R
G. & A. S e lig m a n n , M e m b e rs N e w Y o rk S to c k E x c h a n g e
K O M A U N E A. I M I I I , l ’O T
P r e s id e n t, S e a b o a rd C o n tin e n ta l C o rp o ra tio n
E O U IS H . F O U N D S
F o r m e r T r e a s u r e r S ta te o f N ew Y o rk
C H A R L E S D . R O B B IN S
C h a rle s D . R o b b in s & C o., M e m b e rs N ew Y o rk S to c k E x c h a n g e
.
. , ' l{ V .
S C H IL L E R
C h a irm a n o f th e B o a rd , C o s m o p o lita n F ir e I n s u r a n c e Co.
E R A 1 V C IS E . S T O R E R
H a m b le to n & C o., In c ., I n v e s tm e n t B a n k e rs
Legal m atters in connection w ith th is issue w ill be passed upon by M r. W . W . C o r l e t t o f Chicago fo r the bankers, and M essrs.
B oskey, Schiller, M a rvin & Serling, N e w Y o rk C ity, fo r the Corporation. A u d its w ill be made sem i-annually by H as k m & bells,
certified public accountants.
T h e s e b o n d s a re o ffe re d w h e n , as a n d if is s u e d a n d ac cep te d b y u s a n d s u b je c t to a p p ro v a l b y c o u n s e l o f all le g al m a tte rs . I t is
e x p e c te d th a t in te rim re c e ip ts o r te m p o r a r y b o n d s e n d o rs e d b y th e g u a r a n to r s w ill be d e liv e ra b le o n o r a b o u t O c to b e r 1 /, 193U.
T hese bonds are listed on the N ew Y ork Produce Exchange and application will be made to list
on an additional recognised Stock Exchange
Price 100 and accrued Interest to yield 6%
P rovident State Securities Company
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
1 3 4 N o r th La S a lle S tr e e t
CHICAGO
150 B roadw ay
N E W YORK
T h e s ta te m e n ts c o n ta in e d h e re in , w h ile n o t g u a r a n te e d , h a v e b e e n o b ta in e d fro m s o u rc e s w h ich w e b e lie v e to be re lia b le .
12
Central W estern Banker, November, 1930
the American Securities Corporation
heralds a program of expansion of in
terests and further scope of operation.
Another recent move was the acquisi
tion of the St. Joseph Life Insurance
Company. Plans are being made to in
crease its capital and expand its busi
ness.
Mr. Vesy was formerly president of
the American Credit Company of
Omaha, Mr. Adams, has been active
in investment banking circles in Chi
cago and New York since the war,
Mr. Kiddoo was formerly vice-presi
dent of the Omaha National Bank
and has moved to Chicago to assume
his new duties. Mr. Baur remains as
an active vice-president of the Omaha
National Bank.
NEW BOND ISSUE
N N O U N C E M E N T has been made
by J. Kenneth Edlin, president,
Provident State Securities Com
pany, Chicago, of a new bond issue of
$3,500,000 Seaboard Continental Cor
poration, 6 per cent guaranteed con
vertible gold bonds.
The Seaboard Continental Corpora
tion was organized in August, 1930,
to carry on the business of an invest
ment trust of the general management
type. Its formation was preceded by a
thorough investigation and analysis of
the operating methods of American
and British investment trusts of this
type. The corporation will acquire,
hold, sell, underwrite securities, par
A
A GAIN OF 132%
A recent analysis of thirty-eight of the leading man
agement type of investment trusts indicates that they have
shown a gain in the last nine years of 132% in assets com
pared with the general market using the Standard Statistics
index of 404 stocks during this period as a basis.
The general market showed a gain of 138% whereas
the investment trusts showed a gain of 270%. The dif
ference between these percentages is 132%, or the gain
made by the MANAGEMENT TYPE OF INVESTMENT
TRUSTS over the general market. This remarkable show
ing is proof of the superior management of investment
trusts.
Our principal reason for offering the United Founders
Corporation stock is because it is ably managed, and is in a
position to benefit by the present market situation, which
will be reflected in increased profits by the United Founders
Corporation when the upward trend commences.
We recommend the purchase of this stock which is
now selling at approximately $12.00 per share, and especially
so while this very low price is available.
SM ITH , L A N D E R Y O U & CO .
210 Farnam Building,
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Omaha, Nebraska
Phone Ja . 5 0 6 5
ticipate in underwritings of securities
and acquire such securities and exer
cise such other of its charter powers
as the Board of Directors may from
time to time determine.
According to the announcement cir
cular, assets are shown as follow s:
“Cash and investments of the Corpor
ation will, upon completion of this fin
ancing, exceed $4,500,000. The bonds
will be senior to 10,000 shares of $6.00
cumulative, preferred stock and 200,000 shares of no par value common
stock, representing an equity of $1,000,000. The Corporation m ust main
tain at all times cash equal in amount
to 100 per cent or securities in the
amount of 105 per cent of this series
of bonds to be presently outstanding.
"G U A R A N T E E . These bonds will
be the direct obligation of the Sea
board Continental Corporation and
will bear the joint and unconditional
guarantee endorsed directly on each
bond, of tEe Lloyd’s Casualty Com
pany of New York and the Federal
Surety Company of Davenport, Iowa,
to pay to the legal holder the principal
and interest when due without any
period of grace or extension of time
as to the payment of that principal or
interest. The combined resources of
the guarantor companies exclusive of
the collateral deposited with them
against this issue exceeds $10,000,000.
“M A N A G E M E N T . The Board of
Directors in whose hands the manage
ment of the Corporation lies consists
of representative bankers who have
been connected with outstanding finan
cial institutions, enabling the C orpora
tion to benefit from the knowledge ac
quired by those institutions in the
proper selection of an investment port
folio.”
The directors a r e : B ertrand L. B ur
bank, Nicol-Ford & Co., Members
New York Stock Exchange, Chicago
Stock Exchange, Detroit Stock E x
change ; W . W . Corlett, Attorney, Chi
cago, Illinois; Charles E. Culpeper,
President, Coca-Cola Bottling Co. of
New York, Inc.; J. Kenneth Edlin,
President, Provident State Securities
C o.; Samuel S. Lerner, G. & A. Seligmann, Members New York Stock E x
change ; Romaine A. Philpot, Presi
dent, Seaboard Continental Corpora
tion ; Lewis H. Pounds, Form er T reas
urer, State of New York, Director
Brooklyn Fire Insurance C o .; Charles
D. Robbins, Charles D. Robbins & Co.,
Members New York Stock Exchange,
Chicago Stock Exchange; Ira A.
Schiller, Chairman of Board, Cosmo
politan Fire Insurance C o .; Francis E.
Storer, Hambleton & Co., Inc., Invest
ment Bankers; Joel Stockard, Joel
Stockard & Co., Inc., Detroit, Member
Detroit Stock Exchange.
Those who are often pickled are
not usually well preserved.
Central W estern Banker, November, 1930
13
(§xtend ^7ime o£imit
on ^ riz e g e tte r (Contest
H E E D IT O R S in charge of the
prize letter contest, on the ques
tion “W hat the Service Charge
H as Done for O ur Bank,” have de
cided to extend the time limit for en
tries to November 30, 1930. This ac
tion is taken in order that those bank
ers desiring to enter the contest and
who have not yet prepared their m a
terial might have additional time in
which to make their entries.
T
The contest is open to any reader of
the C e n t r a l W e s t e r n B a n k e r . A
practical, usable plan, now in opera
tion should be outlined in sufficient detad to give the idea justice. Tell us in
your own words, without regard to lit
erary style, just what the installation
of service charges has done for your
bank—what the increase in revenue
has b een; what influence it has had on
deposits; what methods were taken
C ontest R ules
1. A n y r e a d e r o f th e C E N T R A L
W E S T E R N R A N K E R is e lig ib le .
2 . L e tter s sh o u ld b e w r itte n on
o n e sid e o f p ap er, ty p e w r itte n if
p o ssib le , an d sh o u ld b e n o m o r e
th a n 1 ,0 0 0 w o rd s in le n g th .
3 . O n ly p r a c tic a l p la n s, n o w in
o p e r a tio n , w ill be c o n sid e r e d .
4 . A ll e n tr ie s m u s t b ear a p o s t
m a r k n o t la te r th a n M id n ig h t,
N ovem ber 30, 1930.
5 . In c a s e o f a tie , d u p lic a te
p r ize s w ill b e a w a r d e d .
0. A d d r ess a ll le tte r s to “T h e
C o n test E d ito r , C E N T R A L W E S T
E R N B A N K E R , O m aha, N e b r .”
WILL
BE
OUR
MAILED
to educate the public to the service
charge when the system was started
and the public’s reaction to it, and any
other point concerning the question.
In these columns we are reprinting
the rules governing the contest. All
entries in our hands by November
30th will be most carefully considered.
Address all communications to the
Contest Editor, C e n t r a l W e s t e r n
B a n k e r , Omaha, Nebraska.
OFFERING
LIST
REGULARLY UPON
REQUEST
G M A C obligations
enjoy the protective background of highly
liquid assets, with credit factors widely diver
sified in region and enterprise. Long regarded as
This contest, details of which ap
peared in the October issue of the
C e n t r a l W e s t e r n B a n k e r , is arous
ing a great deal of interest among our
readers, especially those in the state of
Nebraska where the installation of the
service charge is not yet an unanimous
condition.
Regardless of the fact of whether
or not you have used a system of serv
ice charges for one month or a year, if
you are in a position to arrive at a
comprehensive conclusion, we suggest
that you make your entry in this con
test.
Plans are being made for the pub
lishing of all worthwhile letters re
gardless of w hether they are prize
winners or not. There is no question
but that the experiences you have had
with the service charge will be inter
esting and helpful to other bankers.
Cash prizes totaling F IF T Y D O L
LARS will be awarded to the eight
best answers as follow s: F irst Prize,
$25; Second Prize, $15; Third Prize,
$5; Five Prizes of $1 each for the
next five best letters.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
a national standard for short term investment,
they have been purchased by individuals, institu
tions and thousands of banks the country over.
available in convenient maturities and
denominations at current discount rates
G
A
eneral
ccepta nce
OFFICES
IN
M otors
C o r p o r a t io n
PRINCIPAL
CI TI ES
Executive Office - BROADWAY a t 5 7 t h S T R E E T - B[ew T or\ City
CAPITAL,
SURPLUS
OVER
AND
UNDIVIDED
$ 8 0,0 0 0,00 0
PROFITS
14
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Central W estern Banker, November, 1930
Central W estern Banker, November, 1930
15
-IN
S
U
RAN
CE
Application
Banhing fraternity
to the
Some High-Lights On
Third Party Insurance
U B L IC L IA B IL IT Y IN S U R
A N C E is often called “Third
P arty Insurance” because the as
sured is protected against the legal ac
tion taken by another as the result of
an accident or death.
Anyone with three dollars in his
pocket can start a law suit for dam
ages, imaginary or real, and the court
decisions that are being handed down
holding the owner of property legally
liable would make Blackstone turn
over in his grave. The human mind
seems to have taken one of its many
queer turns, because if a person slips
and falls on the sidewalk in front of
your bank today, the chances are a law
suit follows in the hopes of getting a
few of your dollars.
At the moment there is a new liabil
ity being imposed upon the banker as
trustee ! A suit has been filed for dam
ages in the amount of $10,000 against
a prominent Chicago bank who were
acting as trustees for an estate com
posed of several large parcels of va
cant property. The father of a boy
who was accidentally drowned while
playing on the vacant property has not
only made a claim against the bank
for damages, but has sworn out a w ar
rant for the arrest of the president of
the bank as being individually respons
ible for the breaking of a city ordi
nance, namely, failure to enclose with
a fence the vacant property, thus pre
venting w hat is called “an attractive
nuisance to children.” W hile lawyers
the city over are still debating the
legal liability of a trustee in this p ar
ticular case, the bank has been called
upon to defend the suit, and as a re
sult of this recent happening there has
been designed a contract to protect the
trustee against this new liability.
P
IX/TANY unusual cases in the courts
1
make an “A ll-Risk” liability con
tract a necessity. The following are a
few interesting cases :
The president of a corporation who
directed construction work was held
personally liable because the corpora
tion had not erected a scaffold. The
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
HY. SCARBOROUGH, Jr.
falling bricks severely injured a pass
erby.
The president of an omnibus com
pany was held personally liable when
he had issued an order to its drivers
to exclude colored persons from the
vehicle. One of the drivers injured the
plaintiff while carrying out the presi
dent’s orders.
“ A n y o n e w ith th r e e d o lla r s in
h is p o c k e t ca n sta r t a la w s u it fo r
d a m a g e s, im a g in a r y or r e a l, and
th e c o u r t d e c is io n s th a t are b e in g
h a n d e d d o w n h o ld in g th e o w n e r o f
p ro p erty le g a lly lia b le w o u ld m a k e
B la c k s to n e tu r n o v e r in h is g r a v e.
T h e h u m a n m in d se e m s to h a v e
ta k e n o n e o f its q u e e r tu r n s, b e
c a u se if a p e r so n slip s a n d fa lls on
th e s id e w a lk in fr o n t o f y o u r b a n k
to d a y , th e c h a n c e s are a la w s u it
f o llo w s in th e h o p e s o f g e ttin g a
fe w o f y o u r d o lla r s .”
A president and general manager
were held personally liable because a
telephone pole fell. The court held
they were negligent in their duty in
not arranging for the inspection of
the pole.
The president of a bill-posting cor
poration who ordered billboards re
moved was held liable because of in
jury resulting by removing the bill
boards.
The president of a corporation di
rected employes to remove some logs,
and in removal of the logs an injury
occurred. The president and the cor
poration were both liable.
A president and general manager
were both held liable for damage and
personal injury by w ater from an ore
washer.
A N O T H E R case illustrating this
x
liability was decided by the Mich
igan Supreme Court in 1912. Crosby
& Company, m anufacturing corpora
tion, sold a stove polish which was
known to be made largely of naptha
and to be highly inflammable. The
plaintiff bought this polish, used it and
was burned. She sued the corporation
and its president. The president argu
ed that the liability, if any, was on the
corporation, but the court said that if
he, as an officer of the corporation,
“had knowledge of the dangerous
character of this compound and was
actively promoting the m anufacture
and sale of it as an officer with au
thority in the corporation,” he was lia
ble.
These cases emphasize the fact that
banks and bank officials may be held
personally liable in many cases for in
jury to persons and destruction to
property arising out of the conduct of
their business.
Several years ago the public liability
policy had limits of $5,000 on any one
person and $10,000 on any one acci
dent. These limits are entirely inade
quate in the light of recent court de
cisions that have been handed down
rendering judgm ent far in excess of
these limits.
If there is an elevator in your bank
building the limit for any one accident
should be a minimum of $100,000.
Visualize for a moment a wealthy and
prominent customer being involved in
an elevator accident and the possible
amount of damage the bank could be
held liable for by the court’s decision.
W here a large number of employes
own their own cars, the bank should
seriously consider the Contingent A u
tomobile Liability Policy which pro
tects the bank’s interests in the event
of an employe either in line of duty or
otherwise injuring a person, and the
bank made co-defendent in a suit. A
judgment of $80,000 was rendered in
New York state holding both employ
er and employe liable because of acci
dental death when an employe was
driving home from work. Statistics
show that three out of four automo
biles driven in the United States do
not carry any liability protection. This
is a startling fact, and the banker for
16
Central W estern Banker, November, 1930
more financial reasons than one should
advocate and even sell to the people
of his community liability insurance.
Who can say that a loan to an individ
ual may not be brought into jeopardy
by a public liability claim against the
borrower that might occur any min
ute of any day.
N E W “All R isk” contract is now
being written by a prominent cas
ualty company covering all public lia
bility except that arising from automo
biles. It is being w ritten for the m an
ufacturing plant as well as the individ
ual, and it is interesting to note some
of the points covered in the policy.
All liability as owner of dogs or
horses ; as owner or user of shot guns,
rities, revolvers, or arms of any de
scription, if used for target-practice or
in self defense or hunting; as partici
pant in the playing or practicing of
golf, baseball, basketball, polo, cricket,
football, hockey, handball, tennis or
other athletic sports or games, except
ing the use of any aircraft, motorboat
or motor-driven vehicle ; as owner and
user of bicycles or tricycles or rowing
boats and canoes, but excepting racing
or professional use ; as owner and user
of radio set, electrical or mechanical
household refrigeration plant or other
household devices, plumbing, lighting
Casualty Insurance?
Yes!
furniture or appliances, including all
wiring and appurtenances pertaining
thereto, situated in or upon the private
residences or private apartm ents stat
ed in Special Condition 6; as owner
and user or lessee of private garages,
outbuildings, tools, implements, wells,
pumps, devices, appliances, fences,
hedges, structures, streams, la k e s ,
ponds, trees, shrubbery or gardens
forming part of or connected with the
private residences or private ap art
ments stated in Special Condition 6;
as owner of domestic fowl, birds, or
cats or other p e ts; as participant in an
accidental event resulting in bodily in
jury to, or the death of another person
or other persons, such as colliding
while walking or running in the street,
causing a person to slip or fall on side
walk or from vehicle; also including
injuries to eyes or otherwise from um
brella, cane or other objects carried or
used by the assured, and other occur
rences of similar nature.
The above policy is most interesting
and opens the eyes of the individual to
some of the hazards that he is not en
joying protection from under his old
form of liability policy.
A new policy issued for the m anu
facturer covers general public liability
at the plant and branches, elevators
and hoists, side tracks, teams, prod
ucts and all work sublet. This policy is
written for a flat premium, not subject
to audit, and is placed upon a one or
three year basis. It would be a plea
sure to furnish additional inform ation
to any of our readers on these new
public liability policies.
Burns Installs New Service
Surety Bonds?
Certainly!
Service?
Absolutely!
W R IT E TO
Federal Surety Company
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Home Office
Davenport, Iowa
O f interest to the bankers in the
rural districts is this new farm service
that the Burns Agency has been offer
ing to the farm ing community.
The Burns Agency, well-known to
the bankers because of their twentyfive years of service to the American
Bankers Association, have established
this new service to the farmers. A
Burns w arning sign is posted on the
farm and all losses of property
through theft are reported to the near
est Burns Agency and a complete in
vestigation is made of the lost proper
ty. The Sheriff of the County cooper
ates with the Burns adjusters, and the
records show that where there is a
large percentage of Burns warning
signs in any one County, sneak thiev
ing and burglary losses have been
greatly reduced.
Recently a Burglary and Robbery
Policy has been added to this service,
paying the farm er for c h ic k e n s ,
horses, cows or other animals that are
stolen from the farm, as well as farm
ing implements or other articles that
are lost by theft.
17
Central W estern Banker, November, 1930
This insurance protection is of in
terest, of course, to the bankers m ak
ing loans to the farm ers, and it is the
first attempt to give to the farm er both
insurance protection and loss investi
gation. Due to the large volume of
business, the rates for the individual
farm er are most attractive.
INSURANCE SAFEGUARD
AGAINST WANT
( C o n tin u e d fro m p ag e 5)
the earner can provide, he has perhaps
saved his family from actual want and
submersion in the class of the always
struggling needy by doing that much.
But when insurance of that part of
the earning power of any man, which
is necessary to enable his family to
carry on as usual, requires in most
cases less than fifteen per cent of his
earnings, failure to adequately insure
such earning power is thoughtless and
thriftless.
The im portant thing in the spending
program of every family is a sound
Q U E ST IO N S A N D A N S W E R S —
1. Is a c h e c k d r a w n o n a n o th e r b a n k
w h ic h p r o v e s to b e “ N o S u ch A c
c o u n t,” an d c a sh e d b y o u r te lle r on
a c c o u n t o f a fo r g e d officer’s in i
tia ls o r O .K ., c o lle c tib le u n d e r F o r m
N o. 8 ? A n s.: N o, it is n o t c o lle c t i
b le u n d e r F o r m N o. 8 . T h e r e is o n ly
o n e c o n tr a c t w h ic h w e k n o w o f th a t
w o u ld c o v er su c h a c a se a n d th a t is
a fo r g e d “ in s tr u m e n t o f w r itin g ”
co v er , w r itte n by L lo y d s, L o n d o n .
2. D o e s B la n k e t B ond , F o r m N o. 2,
c o v e r th e m y s te r io u s d isa p p e a ra n ce
o f m o n e y or s e c u r itie s w h ile in th e
h a n d s o f a m e s s e n g e r ? A n s.: F o r m
N o. 2 d o e s n o t c o n te m p la te su c h p r o
te c tio n . U n d e r F o r m N o. 8 or L lo y d s
H .A .N . F o r m “ C” c o n tr a c ts, th e
w o r d in g
p la in ly
in d e m n ifie s
th e
b a n k e r a g a in s t lo s s or m y ste r io u s
d isa p p e a r a n c e o f m o n e y o r s e c u r itie s
w h ile in tr a n s it.
3 . D o e s th e fid e lity b o n d o r sc h e d u le
su r e ty b o n d c o v er m y s te r io u s d isa p
p e a r a n c e ? A n s.: N o, it d o e s n o t. It
is in c u m b e n t u p o n th e a ss u r e d to a l
lo c a te th e t h i e f a n d b e p re p a r ed to
sw e a r o u t a w a r r a n t fo r th e c r im in a l
i f p r o p e r c la im is to b e m a d e u n d e r
a fid e lity b on d .
!Life Insurance—
|
!
j
;
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!
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!
the Banker’s Friend I
B a n k s a re th e m ed iu m th r o u g h w h ich m o d e rn b u sin e ss of a ll k in d s is
c a rrie d on. T h ey , in tu r n , a re d e p e n d e n t on g e n e ra l b u sin e ss a c tiv itie s fo r
th e ir ow n p ro s p e rity .
L ife in s u ra n c e does m u ch to s ta b iliz e b u sin e ss o p e ra tio n s.
I t safeg u a rd s m e rc a n tile a n d in d u s tria l e n te rp ris e s a g a in s t loss o ccasioned by th e
d e a th of th e ir m a n a g in g h e a d s. I t ste p s in a n d m e e ts th e fin an cial n eed s of
a fa m ily w h o se b re a d w in n e r h a s been ta k e n . It p ro v id e s ste a d y in co m es fo r
p eo p le w ho h a v e ta k e n fo r e th o u g h t fo r th e i r la t e r y e a rs.
T h e b e n e fic ia rie s of life in s u ra n c e a re c u sto m e rs of th e b a n k s in th e ir
h o m e c o m m u n itie s, a n d th e m o n ey p aid th e m soon finds its w ay in to d e p o sit
a c c o u n ts, in v e s tm e n ts, a n d th e c h a n n e ls of ev e ry d a y b u sin ess.
F o r h is ow n s e lf-in te re s t a n d th e g e n e ra l good of th o se w ho re ly u p o n
h im , e v ery b a n k e r sh o u ld p ro te c t h is ow n in s titu tio n a n d fa m ily w ith ad e q u a te life in s u ra n c e a n d e n c o u ra g e h is p a tro n s to do lik e w ise .
I The
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S E R V I C E LIFE
B. R. B A Y S ,
P r e s id e n t
IN S U R A N C E CO., L IN C O L N , N E B R .
H o m e Office B ld g ., 1 5 th a n d N S tr e e ts
JO H N L. O E SC H G E R ,
S e c ’y -T rea s.
WITH UNUSUAL
T h a t 5 ,7 0 0 b a n k s w e r e fo r c e d to c lo s e
th e ir d o o r s d u r in g th e p a st te n y e a rs,
ty in g u p $ 2 ,0 0 0 ,0 0 0 ,0 0 0 o f d e p o s ito r s ’
m o n e y ? A c o n tr ib u tin g fa c to r to th e s e
c lo s u r e s in so m e c a se s w a s a n in a d e
q u a te in su r a n c e p ro g ra m .
T h a t th e P r e s id e n t o f th e U n ite d S ta te s
a t C le v e la n d r ec o m m e n d e d a fo r m u la to
m a in ta in b u s in e s s s ta b ility ? J u d ic io u s
s e le c tio n o f in su r a n c e sh o u ld p la y a
p a r t in th is p ro g ra m .
T hat 62%
hom es ?
o f fire lo s s e s
o c cu rr ed
in
T h a t th e I n su r a n c e C o m m itte e o f th e
A m e ric a n B a n k e r s A s so c ia tio n h a v e d e
v e lo p e d a n e w b u r g la r y an d r o b b e r y p o l
icy , an d c r e d it sh o u ld g o to M r. K e y s e r
a n d h is C o m m itte e ?
T h a t th e P r o te c tiv e D e p a r tm e n t o f th e
A m e ric a n B a n k e r s A sso c ia tio n , m a n
aged by J a m e s B a u m , h a v e a c c o m
p lish e d m u c h in lo s s p r e v e n tio n ?
T h a t B a n k e r s B la n k e t B o n d , F o r m N o.
8 , can n o w b e is s u e d e x c lu d in g fo r g e r y
c la u s e N o. 3 ? T h is is a ste p fo r w a rd .
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18
Central W estern Banker, November, 1930
and regular element of savings and
investment. In too many cases where
there is savings in a haphazard and ir
regular way, the investments made are
often so highly speculative as to m ere
ly amount to blind gambling. The first
ten or fifteen per cent of income that
should and can be saved, should be in
vested in the most sound and conserv
ative way.
There is one speculative element
which cannot be avoided, and that is
the element of sickness and death.
W hen life insurance fully covers this
chance, and at the same time offers a
sound and safe form of investment,
its supreme importance in the first es
sential steps for protection of the fu
ture is apparent.
The insurance against prem ature
death establishes the estate planned
for as one set up at time of death,
whenever that may occur. The risk of
prem ature decease is simply elimin
ated. The estate planned is assured.
But modern life insurance considered
simply as a savings and investment
program, is easily first among plans
that can be considered safe. The set
program of the premiums to be set
aside and systematically saved and in
vested equals any other plan for in
stalment investing.
Many plans exist for enabling peo
ple to set aside and invest small sums
at regular intervals. W ith its highly
organized system of agencies, ade
quate and regular notices, follow-up
tying
service
24 hours a day . . .
T H E S E R V IC E of th e Bell
System never stops. E very
m inute, th ro u g h the night as
well as th ro u g h th e day, it is
w orking.
O n e reason w hy the tele
ph o n e is used m ore and m ore
each year is th a t it is so easy
to use. O perators are quick
to answer sw itchboard signals ;
c o n n e c tio n s are co m p leted
prom ptly.
M ak in g th e service attrac
tive is sound m erchandising.
A t th e same tim e it is in the
public’s interest. F o r one p er
son to be able to get in com-
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Federal Reserve Bank of St. Louis
m u n ic a tio n w ith a n o th e r,
w henever and w herever d e
sired, is often m ore than m ere
ly convenient.
O ne indication of th e w ide
spread dem and for this service
is the vast plant, precisely con
structed and expertly m ain
tained, required to supply it.
In thirty years the plant in
vestm ent of the Bell System
has grow n from $181,000,000
to m ore than $4,000,000,000.
M a y we send you a copy o f
our booklet, ((B ell Telephone
Securities' '?
BELL T E L E P H O N E
S E C U R I T I E S CO.
195 Broadway, N ew York City
of cases of non-payment, facilities for
tiding over tem porary inability to pay
a premium now and then, the life in
surance system is at least as good if
not better in practice than any other
plan for securing regularity and con
tinuity of savings and investment.
By the various plans, multiplied in
late years, for investment trusts and
cooperative organizations that enable
the investor of comparatively small
amounts to share in a largely diversi
fied line of investments, people have
been taught that the man who selects
and purchases such securities as a
moderate fortune permits, runs the
risk of loss on a few items, which will
be severe on him if but one of such
few fails.
Do peoples realize generally that the
great insurance company is the best
regulated, most conservative and most
experienced investment trust or asso
ciation that can be formed? Being su
pervised by examinations by state in
surance examiners, and subject to the
regulation of state statutes on insur
ance, it stands like national banks, or
state banks in the best organized
states, as not only having itself exper
ienced and able financiers as officers,
but also having the safeguards of reg
ular and adequate examination, and
of steadying laws and regulations.
Such a great organization, making
its investments on a nationwide sur
vey, is by no means dependent on the
prosperity of any single line or type of
industry or locality. Even where an
investment trust offers diversification,
it will usually be found that its offi
cers and directors favor some special
type of investment. It may be of in
dustrial stocks and bonds, or of bank
stocks, or of public utilities, or of
government bonds. But a great insur
ance company will have in its treasury,
for its thousands of policyholders and
investors, the best and most sound of
all these types of investment, and no
such amount of any one that there is
risk of large loss in the decay of any
one type of industry.
Finally, the management of this
type of cooperative investment, with
its compounding of interest and in
come, steadily maintained, is con
ducted by the great and sound insur
ance companies at as low a cost of su
pervision as can be found in any other
organization. T r u s t companies do
show on the average as low charges,
but in some investment trusts the cost
of management and operation is as
large as is the cost of management
plus a large part of the cost of insur
ance against death, in a well-managed
insurance company.
19
Central W estern Banker, November, 1930
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New!
A. N. M A T H E R S,
’r e s i d e n t , N e b r a s k a B a n k e r s A s s o c i a t i o n
W M , B . H U G H E S , S e c r e ta r y ,
N e b r a s k a B a n k e r s A s s o c ia tio n
......... .................................................... mi.... nimm.... .............................................................. luminili..........mi...... mi.... minmiii...... ................................... ..................... ............. ................................... " " I"""ii'i"l" " " " " l"""i'i
R E W A R D of $3,000 for dead
bandits has been offered by the
Nebraska Bankers Association.
The announcement of the aw ard
was made October 15 at Omaha, by
the protective committee of the assoc
iation. It m arked success in a project
which the bankers have been consider
ing for nearly two years. At first it
had been the hope of the association
that an aw ard of $5,000 might be post
ed. Finally, however, 500 member
banks of the association agreed to un
derwrite the award of $3,000.
In future, if any bandits who are in
the act of robbing a Nebraska bank,
or who have committed a robbery and
escape, are killed in the act or in re
sisting capture, the aw ard will be paid.
The five hundred participating banks
have each agreed to pay $7.50 on
every such occasion. This is greater
than the amount of the award, to pro
vide for incidental expenses.
The announcement came after a
series of bold robberies of Nebraska
banks, of which the boldest and most
successful was the daylight looting of
the Lincoln National bank, September
17. In a number of robberies, notably
at H ay Springs and at Genoa, the cap
ture of some of the robber-suspects
was gratifyingly prompt.
On the day the aw ard was an
nounced, however, the Bank of Nem
aha was held up by three men and
nearly $1,000, approxim ately all the
cash on hand, was taken.
Besides the announcement of the
award, the protective committee, to
further the campaign against robbery,
made the following announcements
and recom m endations:
Reiterated and emphasized its rec
ommendation to the bankers of the
state that they reduce cash on hand to
a minimum and send negotiable secur
ities elsewhere for safe-keeping.
The official thanks of the committee
were tendered to the American Legion
for the steps that organization is tak
ing to suppress banditry. The legion is
A
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Federal Reserve Bank of St. Louis
undertaking the organization of vig of the strong banks in W estern Ne
ilantes to form quickly to pursue ban braska.
dits.
Elected President
A recommendation was made to all
Gwyer H. Yates, form er vice presi
banks to install silent alarm systems
dent of the United States National
with outside guards.
T ear gas systems designed to act in Bank, Omaha, was elected president
stantaneously were also approved. of the bank at a meeting October 14,
These provide for the release of gas according to advice received by N orth
from concealed containers, by the west Bancorporation. R. P. Morsman,
pressure of electrical buttons in v ar form er president, was made chairman
of a newly created executive commit
ious parts of the bank.
A further measure favored by the tee, W . B. T. Belt, president of the
committee when time permits its poss Northw estern Bell Telephone Com
ible development is a blockade of the pany, remaining chairman of the
roads with tem porary suspension of board of the bank.
Mr. Yates is widely known in finan
traffic together with the necessary ar
cial circles in the northwest and cen
rangements to guard intersections.
Thanks of the committee were ex tral west and has been twenty-five
tended various broadcasting stations years identified with the United States
that rendered valuable assistance dur National Bank of Omaha, having had
a connection with the old Nebraska
ing recent robberies.
The committee will ask the associa National and other banking experience
tion at its convention in November to antedating.
The United States National Bank
take a stand in favor of a state con
of Omaha is one of the largest banks
stabulary.
in the middlewest with capital and
Conditions Good in Dawson County surplus nearly $2,000,000 and re
Dawson County, Nebraska, for quite sources exceeding $25,000,000. The
a number of years, has ranked as one United States National became a
of the banner counties of the state, it member of the Northwest Bancorpor
harvested one of the best small grain ation group July 10, 1929.
crops this year, both as to quality and
Bankers Discuss Problems
yield, in its history. Corn is good and
The Boone County Bankers Assoc
promises a yield of from 25 to 60
bushels per acre and is ripening rapid iation met in Albion, Nebraska, re
ly with the present favorable weather. cently, to elect officers for the ensuing
The territory in and about Gothen year and discuss some of their prob
burg seems to be especially prosper lems. The question of protecting their
ous, as evidenced by the substantial banks against robbers was up for dis
statements made by the banks in that cussion and it was decided to carry
town. The recent statement of the only a small amount of cash on hand
Gothenburg State Bank, which has and to close their places of business
just come to our attention, shows de during the noon hour. The matter of
posits of 575 thousand dollars and a service charges was also taken up and
cash reserve of nearly 209 thousand a schedule of such charges will be pre
dollars. This bank, which is officered pared. The officers elected for the en
by H. T. Williams, president; E. J. suing year w e re : Aubrey A. Smith, St.
Loutzenheiser, vice presid en t; G. G. Edw ard, president; O. M. Havs, P e
Hampton, vice president and cash tersburg, vice-president; R. T. Floier; F. C. Nelson and R. R. Aden, as tree, Albion, secretary-treasurer. These
sistant cashiers, has contributed in no with F. D. Burgess, Jr., of Cedar
small way to the development of its Rapids and W . C. Wicks, of Primrose,
community, and is recognized as one will constitute the advisory board.
20
Central W estern Banker, November, 1930
Sells Assets
Purchase of the assets of the F arm
ers State Bank of Brainard, Nebraska,
by the B rainard State Bank, was
announced by Bank Commissioner
Woods recently. The Butler county
town will have two banks instead of
three as the result of the sale.
Under the term s of the deal, the
B rainard State Bank assumes all the
liabilities of the Farm ers State and
takes over the assets with which to
pay them off. Depositors in the F arm
ers Bank will be paid by the Brainard
State.
A. A. Hayek, president of the F arm
ers State Bank, has long wished to re
tire, it was stated at the banking de
partment. H is firm had deposits of ap
proximately $265,000 in the last report
published by the department. Mr.
Hayek has been assisted by W . C.
Stejskal, cashier.
Officers of the B rainard State a r e :
Joseph Herucha, president; Charles
J. Davis, vice president; J. A. Proskovec, cashier.
Bankers Organize
Bankers of Antelope County have
formed a protective organization un
der the leadership of S. D. Thornton,
Jr., of the Security State Bank at Neligh, Nebraska, as a precaution against
the raids of bank bandits. Providing
neighbor merchants with guns and
reduction of cash on hand are steps
recommended.
The
L oans
Our consistent growth and progress, contributed to
largely by our correspondents throughout Nebraska, is
indicative of the careful service and prompt attention
rendered them.
T o ta ls
O FFIC E R S
C H A S . T. K N A P P , C h a i r m a n o f t h e B o a r d .
E D W I N N. V A N H O R N E , P r e s i d e n t
W . S. B A T T E Y , A s s t . V i c e - P r e s .
T. B. S T R A I N , V i c e - P r e s i d e n t
R A Y C. J O H N S O N , A s s t . V i c e - P r e s .
E D W A R D A. B E C K E R , C a s h i e r
W H E A T O N B A T T E Y , A sst. C ash ie r.
nm ^
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
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Now is #the time to study your investments and
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T H E FIRST TRUST COMPANY
OF
LINCOLN, NEBRASKA
Affiliated Institution The First National Bank
D e p o s it s
$67,772,616 $114,720,376
Reduce Cash
We solicit the accounts of Banks and Bankers, offer
ing every facility and service.
|
D e p o s it s
O m a h a -----------------$21,815,934 $ 35,355,382
F ir s t ---------------------------------- 11,426,798
26,491,381
U . S. .......................
10,799,583
2 0,433,547
S to c k Y a r d s ____ ___
8,584,993
9,932,110
4,191,723
L iv e S t o c k _______________
5,376,794
S ta te B a n k o f O m a h a ___
2,729,702
4,980,389
P a c k e rs ----------------------------- 2,775,045
3,36,8,963
P e te r s -------------------------1,272,572
2,879 ,0 1 2
U n io n S t a t e ---------------------1,191,508
2,183 ,5 4 4
S. O m a h a S t a t e ___________ 1,039,652
1,445,289
S. O m a h a S a v in g s ...
964,805
1,003,957
F a r . a n d M e r -------------------631,317
788,041
B a n k F l o r e n c e ____________
349,029
481,967
“ A Bank f or Bankas ”
r
L oans
$23,364,432 $ 40,615,944
9,824,93 2
30,024.549
8,690,311
2 3,965,038
7,544,977
10,736,441
2,224,177
5,551,015
1,952,708
3,899,200
987,786
3,250,157
799,199
1,883,997
855,203
1,253,722
9p8,166
978,608
531,297
739,491
146,959
206,636
Figures for October 4, 1929:
LINCOLN, NEBRASKA
|
O m a h a _____________
F ir s t
................
U . S.
........
S to c k Y a r d s ___ ___
L iv e S to c k
S ta te B an k O m a h a ...
P a c k e rs ....... .......
U n io n S ta te . _______
S. O m a h a S ta t e ____
S. O m a h a S a v in g s ....
F’a rm . a n d M e r c h a n t
B a n k F lo re n c e
T o t a l s ----------------------------- $57,910,147 $123,104,798
Continental National Bank
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Deposits Up Eight Millions
A gain of over 8 million dollars in
deposits from June 30 to September
24 was reported by Omaha banks, fol
lowing the call of the comptroller of
the currency for a statement of the
condition of national banks, as of the
close of business on the latter day.
Total deposits September 24 were
$123,104,789, and loans at that time
amounted to $57,910,147. Loans de
creased approxim ately 10 million dol
lars in a year.
By banks, the September 24 figures
follow :
Representatives of nine banks in
Douglas County outside of the down
town Omaha institutions and all banks
in Sarpy County drew up plans for
reducing hazard of bank holdups at a
meeting of the Douglas-Sarpy County
Bankers’ Association at Elkhorn, N e
braska.
The bankers reported they had re
duced cash on hand to a minimum be
cause they can get more from Omaha
quickly. .Several told of installing new
secret alarms and of employing special
guards. Montgomery American Legion
post of V alley, which has members in
several of the county’s small towns,
reported that it had distributed guns
and had arranged to assist in holdup
prevention in line with the legion’s
state-wide vigilante organization.
Employ Armed Guards
I |
^ The Stephens National and the
Fremont National Bank announced
the employment of guards as a special
precaution against bank robbers. Sam
uel Blair will be at the Stephens Bank
and Edw ard Brenner will be at the
Frem ont Bank. Each has served as
head of the Frem ont police depart
ment.
21
Central W estern Banker, November, 1930
Joins Omaha National
Appointment of James H. Moore as
an Assistant Cashier of The Omaha
National Bank has been announced by
W. Dale Clark, President.
“Mr. Moore comes from a banking
family, his father being a vice presi
dent of the Fidelity National Bank
J a m e s H . M oore
and T rust Company of Kansas City
and his grandfather being president
of The F irst National Bank of H ol
ton, K ansas,” said Clark. “Entirely
aside from that environment, Mr.
Moore has proved his own ability, par
ticularly in his knowledge of an expe
rience with banking conditions and
practices in agricultural communities
such as those which comprise a large
part of our territory.”
Mr. Moore has been cashier of the
F irst National Bank of Hominy, O k
lahoma, for the last five years. Prior
to that time he was with the New
England National Bank of Kansas
City, Missouri, and still earlier he was
a student at the University of Missou
ri.
Banks Suffer from Practices
Philanthropic activities are not the
real business of a bank but of the in
dividual citizen and stockholder, de
clared Dan V. Stephens, Frem ont, N e
braska, in his presidential address be
fore the State Bank Division at the
American Bankers Association con
vention in Cleveland. H e spoke on
“A Survey of State Bank Activities.”
H e said that long ago banks had as
sumed community leadership carrying
on every sort of community uplift at
a great expense to the profits of the
banks.
“I t ’s not the bank’s business,” said
Mr. Stephens, “to become a leader and
financial supporter of churches, col
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Federal Reserve Bank of St. Louis
leges, street shows, charitable institu
tions and all of the innumerable activ
ities of the community. That is the
business of the stockholder as a citi
zen or member of social organizations.
People who have business with banks
want the banks to attend strictly to
that business.”
“Banks in great number have dur
ing the last decade come to see the
light in this respect and to act upon
it,” said Mr. Stephens. But there are
other gifts that should he cut out, he
said,—the gifts of service that cost
the bank large sums of money.
“The most amazing thing,” he said,
“is the idea bankers generally have
that a service charge of every kind,
measured exactly to the service ren
dered, cannot be justly and properly
made and accepted by the people who
use the bank. O ur experience is that
the people are ready and willing to
pay for such services as a bank ren
ders and those who are not willing to
pay for it cannot possibly be of any
profit to the bank.”
Mr. Stephens said it was only those
banking institutions that have self-re
spect and courage to insist on the
bank’s service being paid for that will
ultimately stand all of the storms that
may break against them.
He also voiced strong objection to
the practice too widely prevalent of
interest payment on public funds on
deposit in the banking institutions of
the country. He said that uncounted
millions of dollars of public money is
now on deposit in the checking ac
counts of the banks of the country.
In practically every state, he pointed
out, the law requires that these depos
its shall he secured by bonds and, in
addition thereto, a varying rate of in
terest is demanded upon the deposit,
usually 2 and 3 per cent. W hen this
interest rate is added to the cost of
surety bond the item of expense to the
bank on these accounts runs anywhere
from 2 y2 to 3J4 or 4 per cent.
“The payment of interest on a pub
lic deposit in a checking account is a
discrimination against all other depos
itors in the banks that are not so treat
ed,” Mr. Stephens said. “It will also
he apparent that there is no justifi
cation whatever for a bank furnishing
a surety bond for public funds when
it does not furnish a surety bond for
22
Central W estern Banker, Novem ber, 1930
private depositors. The discrimination
is so apparent and unjust that bankers
everywhere should give the m atter
their attention and they should join
in a refusal to permit such an outrage
to be perpetrated upon the private de
positors in their banks.”
Mr. Stephens declared that the gen
eral condition of banking in the United
States is undoubtedly better that it
has been since 1921. In fact, he said,
“one might conservatively state that
banking is on a sounder basis now
than it has ever been in all of its history.”
COMMITTEE REVIEWS PUBLIC
SERVICE SECURITIES
SITUATION
( C o n tin u e d fro m p ag e 10)
“ It does no harm to recall public
statements from authoritative sources.
In the fifteen years from 1912 to 1927
the amount of electricity generated in
creased 626% , the number of custom
ers 465% , the number of people living
in wired houses 5 2 0 % — increases
scarcely influenced by the 24% growth
of population for the period. In 1902
gross receipts were $85,000,000, in
Guaranty Trust Company
of New York
140 Broadway
LO NDO N
P A R IS
BR U SSELS
L IV E R P O O L
HAVRE
ANTW ERP
Condensed Statement, September 24, 1930
RESOURCES
C ash o n H and , in F e d e r a l R e s e r v e B a n k , a n d d u e
fr o m B a n k s a n d B a n k e r s . ................................................S 2 5 4 ,4 3 0 ,7 9 6 .9 7
U. S. G o v er n m e n t B o n d s a n d C e r t i f i c a t e s ...........................
1 0 3 ,5 8 7 ,4 0 8 .5 5
P u b lic S e c u r i t i e s ..................................................................................
3 0 ,4 6 8 ,7 0 2 .1 3
S to c k o f th e F e d e r a l R e se r v e B a n k .........................................
7 ,8 0 0 ,0 0 0 .0 0
O th er S e c u r i t i e s ..................................................................................
5 6 ,2 4 9 ,6 3 7 .0 9
L e a n s a n d B ills P u r c h a s e d .............................................................
1 ,1 8 1 ,8 0 3 ,3 7 7 .3 4
2 ,4 0 2 ,7 4 0 .8 2
R e a l E s ta te B o n d s a n d M o r t g a g e s .........................................
Ite m s in T r a n sit w ith F o r e ig n B r a n c h e s ...........................
6 ,8 0 0 ,6 0 0 .5 5
C r ed its G ra n ted o n A c c e p t a n c e s ................................................
1 1 8 ,3 6 0 ,1 1 9 .9 3
B a n k B u i l d i n g s ..................................................................................
1 4 ,4 5 4 ,2 7 6 .7 1
A c cr u e d I n te r e s t an d A c c o u n ts R e c e i v a b l e ...........................
1 0 ,0 6 7 ,4 8 0 .5 0
8 1 ,7 8 6 ,4 2 5 ,1 4 0 .5 9
LIABILITIES
C a p i t a l ............................................................. 8 9 0 ,0 0 0 ,0 0 0 .0 0
S u r p lu s F u n d ................................................
1 7 0 ,0 0 0 ,0 0 0 .0 0
U n d iv id e d P r o f i t s .........................................
3 7 ,3 9 1 ,2 5 7 .0 5
8
A ccru ed D i v i d e n d ..................................................................................
A c cr u e d In te r e s t, M is c e lla n e o u s A c c o u n ts P a y a b le ,
R e s e r v e fo r T a x e s, e tc .............................................................
A g r e e m e n ts to R e p u r c h a s e S e c u r itie s S o ld
. . . .
A c c e p t a n c e s ...............................................................................................
L ia b ility a s E n d o r s e r on A c c e p ta n c e s a n d F o r e ig n B ills
D e p o s its
................................................
8 1 ,1 4 4 ,2 6 0 ,7 2 8 .4 5
O u tsta n d in g C h e c k s ...........................
3 6 ,3 2 4 ,5 8 1 .5 2
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
2 9 7 ,3 9 1 ,2 5 7 .0 5
4 ,2 0 0 ,0 0 0 .0 0
1 3 ,1 0 9 ,7 7 9 .3 4
2 1 ,3 2 3 ,3 4 6 .8 1
1 1 8 ,3 6 0 ,'1 1 9 .9 3
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1929 they exceeded $2,000,000,000;
and during this same period invest
ment increased from $500,000,000 to
$11,000,000,000. Some sharp gentle
men with a sharp pencil may prove
these figures w r o n g in certain
amounts, for data is notoriously hard
to gather correctly; but egregious er
rors must needs be disclosed to belie
the substantial accuracy of the ratios.
In 1929 the kilowatt-hour output in
this country was over 97,000,000,000,
and this year will run over 100,000,000,000, continuing to be more than is
produced in all the rest of the world.
And this result has been accomplished,
in the face of an increasing system
cost per kilowatt of installed capacity,
with a reduction in kilowatt - hour
charge to the customer, till his pay
ment for this indispensable service is
ridiculously small when compared
with his daily costs for food, shelter
and clothing. The feat accomplished
and the service rendered are each ex
traordinary and m erit recognition as
such. But such a general statem ent is
better reduced to the specific. Mr. W .
A. Jones, president of the National
Electric Light Association, points out
that the average rate for electricity at
the end of 1929 was but 30% of the
1890 price, and that since 1913 against
a 70% increase in the cost of living
there has been a 30% decrease in the
average rate for domestic electric ser
vice. The multiplication of the use
of appliances has increased the aver
age kilowatt-hour sales per domestic
customer from 268 in 1914 to 502 in
1929—by far larger than anywhere
else in the world. Consider what it
means to general well-being that 94%
of domestic customers own flat irons,
44% vacuum cleaners, 33% washing
machines, and for the future of do
mestic sales that only 4.5% have elec
tric ranges and 9.4% electric refrig
erators. T hirty per cent of the homes
are still without electricity, though of
these many are yet beyond the reach
of transmission lines. Mr. E. Gruhl,
of the N orth American Company,
makes the interesting per capita com
parison of yearly expenditures for the
entire country of $5 for residential
electric service against $16.50 for to
bacco, $8.50 for candy, $8.00 for ice
cream, $9.50 for reading, $182 for
food. These figures would have no
place here except as they bear on the
character and cost of domestic elec
tric service, and so in turn on the na
ture of im portant values that support
the billions invested in the industry.”
1 ,1 8 0 ,5 8 5 ,3 0 9 .9 7
8 1 ,7 8 6 ,4 2 5 ,1 4 0 .5 9
Snob : I never associate with my in
feriors, do you?
Girl : I don’t know ; I never met
any of your inferiors.
23
Central W estern Banker, Novem ber, 1930
News of the Omaha Stock Yards
Farmers Feeding Wheat
Feeding of wheat has become a
quite common practice among the
more progressive farm ers in the K ear
ney section of Nebraska and even
feeders, in some instances, are buying
up wheat, at the prevailing price, to
ration along with their corn and mixed
feeds.
W ith wheat quoted at between fifty
and sixty cents, experts contend that
it is just good sense to feed it, rather
than sell. Its food value, as compared
to corn and other grains has frequent
ly been set forth, to the advantage of
wheat. But rarely, in the past, have
the respective prices of wheat and
corn experienced such a wide and un
natural spread, as to make it more ad
visable to feed wheat.
M any farm ers are also having their
wheat ground into flour, at the local
feed mill, a practice unrecorded in
many years. They state that it makes
an ideal whole wheat flour and avail
able at a price which constitutes a sav
ing of considerable proportion. Only
a nominal charge is made for conver
sion of the wheat into whole wheat
flour and many farm ers are restoring
to the grinding process.
W henever, in the past, prices of
wheat have been sufficiently low to
w arrant it, as compared to corn m ar
ket quotations, many of the outstand
ing feeders of live stock have in
creased their wheat content in food
m ixtures, but at present the wheat
proportions have been considerably in
creased because of the price variance.
Feeders to Meet Nov. 5
H arry Hopley, president of the In
terstate Live Stock Feeders’ and
Growers Association, has announced
that the annual meeting of that organ
ization will be held in Omaha on W ed
nesday evening, November 5, as one
of the features of A k-Sar-Ben Stock
show week.
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Federal Reserve Bank of St. Louis
A dinner tendered by the Union
Stock Y ards Company and the Omaha
Live Stock Exchange at the Yards
will be followed by a short speaking
program after which will come the
business session. Among the m atters
coming up at this time is the selection
of a representative of the association
to serve as a member of the board of
directors of the National Live Stock
and Meat board.
The date for the dinner and meet
ing has been thoughtfully selected
with the idea of allowing visitors to
see as much of the show as possible.
Wednesday, the 4-H baby beeves are
to be judged and there is also a horse
show matinee that afteroon, while
T hursday’s big event will be the auc
tion of show feeder cattle.
To Winter More Cattle
No where near as much stock as
usual has been shipped out of western
Nebraska up to the present time, and
prospects are that ranchers will winter
over a bigger share of their stock this
season, according to A. R. Modisett,
Sheridan county rancher. H e himself
plans to run over something like a
fourth more steers.
Mr. M odisett was in Om aha with
four loads of feeders, averaging close
to 1,000 pounds. Most of them brought
$8.50, with a small end at $8.00. He
will keep over several hundred steers
of the same age and quality to market
as beef next fall.
Rustlers Still Active
Cattle rustling in the Slim Buttes
country of South Dakota is wmrse to
day than it was in the old wild west
days, Abe Jones, pioneer rancher, de
clares.
“In the old days we used to lose an
occasional cow or half a dozen calves
to rustlers, but the modern rustlers
are much worse. Using trucks, they
can carry away many calves at a time
and be hundreds of miles away before
wre miss them ,” Jones said.
Jones has been in the Slim Buttes
country since 1886, when he took up a
claim after coming west to prospect
for gold in the Black Hills.
Cass Bankers Elect
Officers of the Cass County Bank
ers association elected newr officers re
cently as follows : President, D. C.
W est, NehawTa; vice-president, H. A.
Tool, M urdock; secretary - treasurer,
W alter J. W underlich, Nehawka.
Robbers Get 40 Years
John Giles and J. B. Fisher pleaded
guilty in district court in Fullerton,
Nebraska, to charges of robbing the
F irst National bank of Genoa, Neb.,
of $6,000 last September 22 and each
was sentenced to serve 40 years in the
state penitentiary.
Immediately after the men were
sentenced, State Sheriff W . C. Condit
announced that the pair had confessed
that they had participated in an a t
tempted robbery at Ray, N. D., d u r
ing which a night watchman was slain.
Increases Surplus
The Jefferson County Bank of Daykin, Nebraska, has added another
thousand dollars to its surplus fund.
This bank now has a capital stock of
$15,000, and a surplus fund of $6,000.
This, in addition to the increase in
surplus last year, is an indication of a
strong, well-managed bank.
Reports Good Crops
Good crops, swift harvesting and a
general feeling of optimism among
the farm ers, beet growers and busi
ness men of the N orth Platte valley
was the report brought by W . Dale
Clark, president of the Omaha N a
tional bank, from a brief inspection of
that territory.
24
Central W estern Banker, November, 1930
Mr. Clark said western Nebraska
will have one of the best, if not the
best, corn crops in its history. He
said the crop is free from danger of
frost. Potato, beet and hay crops, he
said, were also excellent.
friends. He plans to rest during the
autum n months and to spend the win
ter in St. Petersburg, Florida.
Mr. Hammond has participated in
a most interesting financial era during
his half century of banking. Since
his start as a debit clerk with the
Greenwich Bank on December 1, 1883,
at the age of 17, he has seen his in
stitution grow from a small bank with
$800,000 in deposits and $1,500,000 in
resources to a part of an organization
with $649,000,000 deposits and re
sources of $800,000,000.
Starting as debit clerk, Mr. H am
mond served successively as clearing
house clerk, discount clerk, receiving
teller, paying teller and assistant cash
ier. In 1909, he was made cashier
Hammond Retires
F rank Hammond, vice-president of
the Central Hanover Bank and T rust
Company, has retired after more than
47 years of banking. He has become
widely known in financial circles
through his many years as vice-presi
dent of the Greenwich Bank, the H an
over National Bank and the Central
H anover Bank and T rust Company.
He has withdraw n from active busi
ness with the good wishes of a host of
and in 1914 he was promoted to vicepresident, which office he retained
through successive mergers. During
his service with the Greenwich Bank,
deposits and resorces increased over
3,700 per cent. Pie recalls with pride
that never once in the Greenwich
Bank’s 97 years of history was it nec
essary to suspend specie payments.
In addition to his banking activities,
Mr. Hamm ond has taken an active
part in civic affairs of his native town
of Boonton, N. J., having served sev
eral years on the Board of Education
and the Board of Alderman and as
mayor during 1918 and 1919. He has
been a life-long members of the F irst
Presbyterian Church and a church o f
ficer for 43 consecutive years.
Vice-President of National City
N a tio n a l C ity b rin g s you
c o m p le t e fin a n c ia l service—
w o r ld -w id e in sco p e.
Diversified holdings stabi
lize the income of your cus
tomers . . . round out their
investment lists with National
City’s diversified offerings.
■f
1
i
The National City Company
National City Bank Building, New York
BONDS
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Federal Reserve Bank of St. Louis
-
SHORT
TERM
NOTES
-
ACCEPTANCES
Douglass B. Simonson, thirty-fouryear-old son of W. A. Simonson, sen
ior vice-president of the National City
Bank of New York and connected
with that institution for more than
forty years, has been elected a vicepresident of the bank.
Young Mr. Simonson formerly was
located in the London office of The
National City Bank of New York but
returned to this country ten years ago
to be assigned to the new F ifth Ave
nue Branch. H e was appointed as
sistant cashier in July, 1923, at which
time he was the youngest officer of
the bank, a distinction which he is be
lieved still to hold among the institu
tion’s vice-presidents. He was made
an assistant vice-president in July,
1927, since when he has been located
at the Forty-second Street branch.
The elder Simonson was elected a
vice-president of The National City
Bank of New York also at the age of
thirty-four.
Upon his graduation from Andover
in 1915, young Simonson went to Yale
for two and a half years before join
ing the Chemical W elfare Service of
the United States Arm y in the W orld
W ar. During his period of service
with The National City Bank of New
York he has distinguished himself in
athletics as a runner, swimmer and
basketball player. His first connec
tion with the bank in 1917 when he
spent the summer rotating through
the several departments. In June,
1919, he went abroad for the bank
and remained with the London office
until August, 1920. He is a graduate
of the American Institute of Banking.
The elder Simonson began his bank
ing career in 1880 at the age of fifteen
with the Second National Bank of
Newark where he remained for a pe
riod of ten years, leaving to join the
staff of The National City Bank of
New York as a clerk at a time when
the late Percy R. Payne was president.
25
Central W estern Banker, November, 1930
ticularly in the Middle W est. George
Reynolds is one of the most widely
known bankers in the United States.
He has held all the im portant offices
in the American Bankers Association,
including the presidency, has been a
class A director of the Chicago Fed
eral Reserve Bank since its organiza
tion, is chairman of the Chicago Clear
ing House Committee, and was ad
viser to the American M onetary Com
mission whose work paved the way
for the Federal Reserve Act. In the
development of this law and in the
development of the Federal Reserve
System, Mr. Reynolds was deeply in
terested and very active. His confi
dence in that system was dem onstrat
In 1896 he was appointed assistant
cashier and in 1901 he became vicepresident. He also was president of
the Second National Bank of New
York when that institution was con
solidated with The National City Bank
of New York.
Completes 50th Banking Year
George M. Reynolds, chairman of
the executive committee of the Con
tinental Illinois Bank and T rust Com
pany and dean of Chicago bankers,
completed his fiftieth year of banking
October 1. D uring the half century
since he began as a clerk for the Guth
rie County National Bank of Panora,
Iowa, he has made bank history, p a r
ed when, in 1917 it was proposed, as
a war measure, that all member banks
turn over their gold to the reserve
banks. He was first to announce that
the Continental and Commercial N a
tional Bank would take that step. Such
an act seems of little moment in 1930,
but in 1917 the reluctance of bankers
to surrender gold was fortified by the
traditions of a century.
In 1897, when Mr. Reynolds a r
rived in Chicago to be cashier of the
Continental National Bank, business
was expanding rapidly and the force
that was driving banking as well as
other business forw ard found in him
a new ally. He was not wedded to
traditions. H is idea was that banking
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Aggregate Assets 30th September, 1929, $454,031,485
A G EN TS— F IR S T
N A T IO N A L
BANK,
OM AHA,
NEBRASK A
HEAD OFFICE, GEORGE ST„ SYDNEY
G E N E R A L M A N A G E R , A L F R E D C H A R L E S D A V ID S O N
LONDON OFFICE, 29 THREADNEEDLE ST.. E. C. 2
5 8 8 B r a n c h e s a n d A g e n c i e s in a l l A u s t r a l i a n S t a t e s , F e d e r a l T e r r i t o r y , N e w
N e w G u in e a , a n d L o n d o n .
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Z e a la n d ,
F iji,
Papua,
M a n d a ted
T e r r it o r y
of
26
Central W estern Banker, November, 1930
was created for business and that old
ways were entitled to respect only if
they contributed to the service that
banks owe to business. It is natural
that he became known as a bank build
er. He had broad views backed up
by courage.
George Reynolds has always been
keenly interested in country banks,
having been a country banker himself,
and he saw that the opportunity for
Chicago to grow financially lay in de
veloping a close relationship between
country banks and their correspond
ents in Chicago. As a result of this
policy, the Continental for years has
led all banks in the United States in
number of bank correspondents.
Mr. Reynolds at once saw the im
portance of gaining for Chicago rec
ognition as one of the financial cen
ters of the world. To do this, Chi
cago must have banking facilities of
such size as could finance the needs
of business in the Middle W est. This
required large capital.
In 1898, the Continental National
absorbed the International Bank and
the Globe National. These two ab
sorptions marked the beginning of a
long series of increase in capitaliza
tion and mergers which first gave to
Chicago, in 1910, the largest bank out
side of New York City—the Contin
ental and Commercial National Bank.
The bank had capital of twenty mil-
lion dollars and surplus of ten mil
lion dollars. George Reynolds was
president.
The climax to the period of consoli
dation came March 18, 1929, when the
Continental National and Illinois M er
chants T rust were united as the Con
tinental Illinois Bank and T rust Com
pany. And the thirty million capital
ization of 1910 seems small indeed
when compared with the 150 million
invested capital of the Continental Il
linois Bank and T rust Company, and
its resources well in excess of a bil
lion dollars.
It was appropriate that it should
be Mr. Reynolds’ fiftieth anniversary
in banking when he consented to have
his name proposed for reelection as
a class A director of the Chicago Fed
eral Reserve Bank. The election oc
curs in December of this year.
Chase Profits Gain
A
Correspondent
Service
developed
from 68 years’
experience
FO R E M A N -ST A T E N A T IO N A L BANK
FO REM A N -STA TE TRUST A N D SAVINGS BANK
C H IC A G O
Ì Ì E S O l' R C E S
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Federal Reserve Bank of St. Louis
K At C E E D
2 5 0
M ILLIOX
DOLL A R S
Undivided profits of The Chase N a
tional Bank of New York in the new
statement for September 24, are $4,800,448 larger than on June 2, 1930,
the date when the Equitable T rust
Company and the Interstate T rust
Company were merged with the
Chase.
The bank’s undivided profits as
shown in the September 24 reports to
the Comptroller of the Currency are
$65,523,927 and combined capital,
surplus and profits amount to $361,523,927.
The deposits of the Chase on Sep
tember 24 were 1,852,295,045, or a p
proximately $64,000,000 less than on
June 2.
Total resources amounted to $2,432,434,809, a decrease of about $119,000,000 since the merger statement.
Organize Banking Units
Employes of Casper banks organ
ized a unit of the American Institute
of Banking, national federation of
such groups that forms a network over
the nation.
The purpose of the organization
will be to discuss banking problems,
to all phases of the business and to
generally increase the knowledge of
banking and practical finance.
The Casper A. I. B. unit members
approximately 20 charter members.
Following officers were installed : H.
J. Clare of the Casper National bank,
president; W. M. Barbee, Wyoming
T rust company, vice-president, and
Kathleen Snyder, W yoming T rust
company, secreary. Miss Snyder is
secretary of the Wyoming Bankers’
association.
Sm art people find out your secret —
and keep it to themselves.
27
Central W estern Banker, November, 1930
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I South Dakota News [
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Farmer Banker Resigns
F. S. Brooks, for some time cash
ier of the F irst National bank in
Farm er, South Dakota, has resigned
this place in order to devote his en
tire attention to a farm which he owns
in that vicinity. He has been succeed
ed in the bank by Jerry M oran, late
of Emery, who has purchased a block
of stock in the bank there. Mr. Moran
has had 14 years’ experience in the
banking business. Miss Cecelia Fuhrman, who was an attache of the bank
during the past ten years, has also re
signed her position.
Angeles, where he was a vice-presi
dent during the past nine years.
Mr. Anderson until recently was
chairman of Group Five of the Cali
fornia Bankers Association and also a
member and chairman of the execu
tive committee of the National Bank
Division of the American Bankers As
sociation. His banking career began
in Kansas and Oklahoma. In the lat
ter state he served as state bank exam
iner, as cashier of the Central Re
serve Bank of Oklahoma City and as
secretary of the Oklahoma State
Bankers Association. Previously he
had been cashier of the F irst National
Bank of Norman, Oklahoma, cashier
of the Old Bank of Lawton and a
vice-president of the Tradesm an’s
State Bank of Oklahoma City.
Lrom Oklahoma City, Mr. A nder
son went to Kansas City as vice-presi
dent of the Stockyards National Bank,
later becoming secretary-cashier of the
tenth district Lederai Reserve Bank,
the position he held at the time he
was elected a vice-president of the Security-Lirst National Bank of Los
Angeles.
Banks Merge
The State Bank of Oral, South Da
kota, in Fall River county, has merged
with the Bank of H ot Springs, the
state banking departm ent announced
recently.
The Morrison is
tallest hotel in
world — 46 stories
high — with 1,'
rooms.
W h e n completed,
the Morrison w ill be
the world’s largest
1hotel, with 3,450
rooms.
Organize at Sioux Falls
Organization of a chapter of the
American Institute of Banking was
started at a meeting of Sioux Falls
bank employes recently. A nom inat
ing committee to name members for
the board of governors was selected
and will make its report at the next
meeting.
The purpose of the organization is
to study courses to bank employes and
give instructions in new principles of
finance and to make improvements in
their work which will bring about pro
motions. Bankers in towns surround
ing Sioux Falls are invited to attend
the next meeting and to become affili
ated with the organization.
Laughing Gas for Bandits
Installation of apparatus to dis
charge several bombs of laughing gas
into the faces of any persons who
might attem pt a holdup, has been com
pleted in the F irst National bank of
W aterloo, Nebraska.
Not only is the system connected
with the burglar alarm, and would
drive out any bandits in a night raid,
but also it is connected with foot
pedals in the tellers’ windows and at
other points in the room, any of which
might be stepped on by bank officials
even while under cover of robbers’
guns.
Elected Vice-President
The Continental Illinois Bank and
T rust Company has announced the
election of Arch W . Anderson as a
vice-president. He resigned from the
Security-First National Bank of Los
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Federal Reserve Bank of St. Louis
Chicago’s
MORRISON HOTEL
Tallest H otel in the W o rld
46 Stories H igh
1,950 Rooms -- $2.50 Up
500 R o o m s B e in g A dded
Every guest room is outside, with bath,
running ice water, bed-head lamp and
Servidor. Each floor has its own house
keeper and the hotel’s garage has extensive
facilities for car storage. Rates are ex
tremely moderate — $2.50 up — because
valuable subleases at this location pay all
the ground rent and the saving is passed
on to the guests.
Closest in the City to Stores, Offices,
Theatres and Railroad Stations
28
Central W estern Banker, November, 1930
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Colorado News
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Banks Deposits $2,600,000
Deposits in the three Longmont
banks, the Colorado Bank & T rust
Co., First National and Longmont N a
tional, totaled $2,617,000, on Septem
ber 24, 1930, according to statements
issued recently to the Comptroller of
Currency.
The banks of Longmont are in a
stable and flourishing condition, the
reports show.
Bank deposits are expected to show
a substantial increase within the next
few months, with the harvest of the
$2,000,000 beet crop and cash received
for other crops.
Make Improvements
The F irst National Bank of W ray,
Colorado, is making several improve
ments at its place of business, work on
which is already started. New base
ment room has been excavated under
the building and a new entrance to the
basement through the bank building
has been built. P art of the new base
ment will be used by the Rinckel Store
for storage space. Plans for improve
ment also include a refacing of the
entire bank block from the Main
Street side to the W ray Tailor Shop.
The building will be given a stucco
finish, both front and rear. It is also
planned to refinish and redecorate the
interior of the bank. The stucco work
will be done as soon as the basement
work is completed, if it has not turned
too cold by that time. If this work is
not completed this fall, it is planned to
complete it early in the spring.
Celebrates 25th Anniversary
H E analysis of th e B onds
in y o u r se c o n d a ry r e
serv e a n d o u r re c o m
m e n d a tio n s co n cern in g y o u r
in v e stm e n ts o r th o se of y o u r
c u sto m ers w ill be m ade b y
e x p e rien c e d m en w h o se ju d g
m e n t is seasoned. T h is in s ti
tu tio n has, d u rin g th e past
f o r t y y e a rs , p r u d e n t ly i n
v e ste d m illions of dollars of
its o w n funds an d th o se of its
cu sto m ers.
T
Write for copy of booklet
“The Place of Bonds in a Bank s
Investment Program.”
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
C H IC A G O
Deposits Make New Record
In face of a nation-wide business
depression, the Rubey National Bank
of Golden, Colorado, has shown a de
cided increase in deposits, according to
a recent report. E. A. Phinney is pres
ident of the institution.
A year ago the bank’s deposits were
$1,193,372 and have now increased to
$1,203,916.
The Rubey National is planning a
new building, which, when completed,
will be one of the finest small town
bank buildings in the west.
Resigns from Central Trust
THE NORTHERN
TRUST COMPANY
N o r th w e st C orn er L a S a lle and M o n ro e
The American National Bank re
cently celebrated its twenty-fifth an
niversary. It was established in Ala
mosa, Colorado, in 1905.
The interior of the bank was beau
tifully decorated in gorgeous bouquets
of flowers.
As customers entered the door they
were greeted by a large basket of huge
yellow chrysanthemums. Baskets of
red roses transform ed the counters
into a bright flower garden.
The officials of the bank gave to all
those who registered a useful souvenir
of either a coin purse or a key ring
and a silver blotter.
S ts.
C. H ow ard Marfield has resigned
his offices as director, vice-president
and chairman of the discount commit
tee of the Central T rust Company of
Illinois and as director of the CentralIllinois Company. H e plans to spend
the next few months in travel and
then enter private banking. Mr. M arfield was formerly president of The
Bank of America which merged with
the Central T rust Company last year.
He has served as a member of the
executive council of the American
Bankers Association, as president of
the Association of Reserve City Bank
ers and enjoys a very wide acquaint
ance among the bankers of the coun
try.
29
Central W estern Banker, November, 1930
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New Mexico News
..................................................................................................................................................................................................mmmmii.................................................................................................mi............mimmim..........
Hagerman Banker Dies
George W . Losey, 73, president of
the F irst National Bank of H ager
man, New Mexico, and a prom inent
banker in the state, died at his home
in H agerm an recently. He had been in
ill health for the past two years. Los
ey came to H agerm an from Nebraska
fifteen years ago.
New Bank at Hobbs
The Hobbs State Bank is a late ad
dition to the business of Hobbs, New
Mexico, a few miles west of the Texas
state line. Oil development, which
brought Hobbs into being, is going
steadily forward.
Holds Annual Meeting
Group No. 2 of the New Mexico
Bankers’ Association, which is com
posed of the banks of Colfax, Union,
Taos, H arding, San Miguel and M ora
counties, held its annual election of o f
ficers at a meeting held in Clayton.
There were 59 present at the banquet.
Representatives of every bank in
the group with the exception of banks
in Las Vegas and Taos, were in at
tendance and many questions of im
portance to the banks in this group
were discussed.
Officers elected for the ensuing year
w e re : Chas. R. Keyes, cashier, Farm
ers & Stockm en’s B an k , W a g o n
Mound, p resident; H. L. Boyd, cash
ier, the Citizens State Bank, Springer,
vice persident; Jay T. Conway, assist
ant cashier, the International State
Bank, Raton, was reelected secretarytreasurer.
During the banquet musical selec
tions were rendered by several of the
employes and members of the families
of the different bankers of Clayton
and Raton.
The next meeting will be held at
Springer December 13th.
Deposits Increase
The principal changes in the con
dition of twenty-eight reporting state
banks of New Mexico, as reflected by
reports of conditions as of the close of
business September 24, 1930, compar
ed with thirty reporting banks of Oc
tober 4, are an increase in time and
demand deposits and a decrease in
loans and discounts.
Time deposits increased $141,815.30
to $3,891,091.38 while demand de
posits increased $225,315.58 to $8,042,567.72.
L o a n s and discounts decreased
$316,422.26 to $7,543,978.99.
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Federal Reserve Bank of St. Louis
Investm ents in United States gov
ernment securities decreased $506,773.75 to $1,671,664.57 and invest
ments in other bonds and securities in
creased $303,968.17 to $1,759,967.11.
Bills payable and rediscounts were
$467,300.80, a decrease of $160,450.92.
The ratio of loans and discounts to to
tal deposits was 63.21 per cent as com
pared with 66.8 per cent a year ago.
The reserve ratio stood at 23.57 per
cent, an excess of 11.57 per cent over
the required reserve.
A UNIFORM METHOD
OF FIGURING INTEREST
( C o n tin u e d f ro m p ag e 8)
to be deducted from the latest depos
its, if any, otherwise from the balance
at the beginning of the period.
T he next sm allest balance fo r the
whole period is $817.00. S ubtract
$800.00 from $817.00 and we have
$17.00 increase, which is all th at is
left of the deposit of $210.00 on Ja n
uary 10th, th at rem ains on deposit
throughout the period. T he $17.00
draw s interest fo r five m onths and
21 days....................................... -........................32
T he n ext sm allest balance is $852.00.
Subtract $817.00 from $852.00 and we
have $35.00 which receives interest
to the end of the sem i-annual period,
and is all that is left of the deposit
of $210.00 made on February 28th,
hence, earns interest fo r four m onths
and three days.............................. -...................48
The next smallest balance is $1152.00,
from which should be taken $852.00,
leaving $300.00 th at earns interest for
one m onth and th ree days............... ...... 1.10
On June 22nd, we find the next
sm allest balance, which is $1435.00.
By subtracting $1152.00 we have left
$283.00, which receives interest from
the day of its deposit, June 1st, fo r
one m onth.... ..................................................... 94
T otal interest fo r the period............. $18.84
In conclusion may I say what a
wonderful thing it would be if a just,
sound, economical and uniform meth
od figuring interest on savings ac
counts could be established and en
forced for all banks. It would bring
the figuring of interest down to an al
most exact science instead of the
many sided, haphazard schemes in
vogue today.
Oh Yeah!
‘‘W hen I have some deep thinking
to do, I light a cigarette.”
“You don’t spend very much for
smokes, do you?”
The Security back of
Federal Intermediate Credit Bank
Interest-Bearing Debentures
Exem pt from all ta x e s . M atu rities: 6 to 9 m onths
Debentures issued by the twelve regional Federal Intermediate Credit
Banks are secured by:
1. — W a re h o u se Receipts pledged by cooperative marketing associa
tions marketing approved staple farm commodities stored in accept
able warehouses. Loans against warehouse receipts are limited by
law to 75% of the market vaiue of the commodities. The chief com
modities against which loans have been made are cotton, wheat,
woo!, tobacco and canned fruits and vegetables.
2.
— F a rm e rs ’ N otes endorsed by the discounting institutions — banks,
agricultural credit corporations, livestock loan companies and other
corporations dealing in agricultural paper.
These Debentures are obligations of the issuing Bank and under the Act
all the twelve Federal Intermediate Credit Banks are mutually liable for
each other’s obligations.
The twelve Banks have a combined paid-in capital of $30,000,000 subscribed by the Trea
sury of the United States, with or. additional $30,000,000 subject to call. Supervision of,
with semi-annual examination by the Federal Farm Loan Board.
Farther information may be had by addressing
Charles R. Dunn, Fiscal A gen t
31 N a ssa u S tre e t
N e w Y o rk C ity
FEDERAL INTERMEDIATE CREDIT BANKS
S p rin g fie ld , M a s s .
N e w O rle a n s, La.
S t. P aul, M inn .
H o u s to n , T e x .
B a ltim o re , M d .
Lo u is ville , Ky.
O m aha, N e b r.
B e rk e le y, Cal.
C o lu m b ia , S. C .
St. Louis, M o .
W ic h ita , Kan.
Spokane, W ash.
30
Central W estern Banker, November, 1930
Bankers Wants
T h is B a n k e r s W a n ts D e p a r t
m e n t is fo r th e fr e e u s e o f C e n tr a l
W e ste r n B a n k e r su b sc r ib e r s. To
a ll o th e r s a c h a r g e o f five c e n ts
per w o r d p e r in s e r tio n w ill h e
m a d e.
W e r e s e r v e th e r ig h t to
e d it a ll co p y or to r e je c t su c h a d
v e r tis e m e n ts th a t w e d eem u n s u it
a b le . A d d r ess a ll c o m m u n ic a tio n s
to th e B a n k er s W a n ts D e p a r tm en t,
C e n tr a l W e ste r n B a n k e r , O m aha,
N e b r a sk a .
Y o u n g m a n 30 y e a rs old w ish es p o si
tio n in b a n k o r tr u s t co m p an y , n in e
y e a rs ’ b a n k in g ex p erien ce. H as h a d ex
p e rien ce in a ll lin es of b a n k in g to c a sh ie rsh ip . P ro te s ta n t. M a rrie d . Can give
th e v ery b est of re fe re n c e s fro m la rg e
b a n k s of im m e d ia te v icin ity . No. 1001.
STATEM ENT
OF TH E
O W N E R SH IP,
M ANAGEM ENT,
C IR C U L A T IO N ,
ETC.,
R E Q U IR E D BY T H E A C T O F C O N G R E SS
O F A U G U S T 24, 1912
Of C E N T R A L W E S T E R N B A N K E R p u b
lish e d m o n th ly a t O m aha, N e b ra sk a , for
O c t o b e r 1, 1930.
S t a t e o f I o w a , C o u n t y o f P o l k , ss.
B e f o r e m e, a N o t a r y P u b lic, in a n d fo r
th e S ta te an d C o u n ty afo resaid , p e rso n ally
a p p e a r e d C liffo rd D e P u y , w h o , havingb e en du ly s w o r n a c c o rd in g to law , deposes
a n d s a y s t h a t h e is t h e P u b l i s h e r o f t h e
CEN TRA L W E ST E R N BA NK ER, and th a t
t h e f o l l o w i n g is, t o t h e b e s t o f h i s k n o w l
e d g e a n d belief, a t r u e s t a t e m e n t of th e
o w n e r s h i p , m a n a g e m e n t ( a n d if a d a i l y
p a p e r , t h e c i r c u l a t i o n ) , e t c ., o f t h e a f o r e
s a i d p u b l i c a t i o n f o r t h e d a t e s h o w n in t h e
a b o v e cap tio n , re q u ire d by th e A c t of A u g
u s t 24, 1912, e m b o d i e d i n s e c t i o n 411, P o s
ta l L a w s a n d R eg u latio n s, p rin te d on th e
re v e rs e of th is fo rm , to w it:
1. T h a t t h e n a m e s a n d a d d r e s s e s o f t h e
p u b lish e r, editor, m a n a g in g e ditor, a n d
b u s in e s s m a n a g e r s a re : P u b lis h e r, C lifford
D e P u y , D e s M o i n e s , I o w a ; E d i t o r , L. D.
V a n D o ra n , D es M oines, I o w a ; M a n a g i n g
E d i t o r , R. W . M o o r h e a d , D e s M o in e s , I o w a ;
B u s i n e s s M a n a g e r , G e r a l d A. S n i d e r , D e s
M o ines, Io w a .
2. T h a t t h e o w n e r is : D e P u y P u b l i s h
in g C o m p a n y , D es M oines, Io w a .
C lifford
De P u y , D es M oines, Io w a .
G e r a l d A.
S n i d e r ,'D e s M oines, Io w a , W m . H. M aas,
C h icag o , Illinois.
3. T h a t t h e k n o w n b o n d h o l d e r s , m o r t
g agees, a n d o th e r se c u rity h o ld ers o w n in g
or h o ld in g 1 p e r c en t or m o re of to ta l
a m o u n t of bonds, m o rtg a g e s , or o th e r s e
c u ritie s a re : None.
4. T h a t t h e t w o p a r a g r a p h s n e x t a b o v e ,
g iv in g th e n a m e s of th e o w n e rs, s t o c k
h o ld e r s , a n d s e c u r i t y h o ld e r s , if a n y , c o n
ta in n o t o n ly th e lis t of s to c k h o ld e r s a n d
s ec u rity h o ld ers as th e y a p p e a r u p o n th e
b o o k s of t h e c o m p a n y a s t r u s t e e o r in a n y
o th e r fid u c ia r y re la tio n , th e n a m e of th e
person or c o rp o ra tio n for w hom
such
t r u s t e e is a c t i n g , is g iv e n ; a ls o t h a t t h e
said tw o p a r a g r a p h s c o n ta in s ta te m e n ts
e m b r a c i n g a f f i a n t ’s f u l l k n o w l e d g e a n d b e
lief a s to th e c irc u m s ta n c e s a n d c o n d itio n s
u n d e r w h ich sto ck h o ld ers a n d sec u rity
h o ld e rs w h o do n o t a p p e a r u p o n t h e b o o k s
of th e c o m p a n y as tru s te e s ho ld sto ck a n d
s e c u ritie s in a c a p a c ity o th e r th a n t h a t of
a b o n a f id e o w n e r ; a n d t h i s a f f i a n t h a s n o
re a s o n to believe t h a t a n y pe rso n , a s s o c ia
tion, or c o r p o r a tio n h a s a n y i n te r e s t d ire c t
o r in d i r e c t in t h e s a id s to c k , b o n d s, or
o t h e r s e c u r i t i e s t h a n a s so s t a t e d b y him .
C L IF F O R D D E PUY,
( S ig n a tu re of P u b lish e r.)
S w o rn to a n d s u b s c rib e d b e fo re m e th is
3 0 t h d a y o f S e p t e m b e r , 1930.
E A R L S. L I N N ,
( M y c o m m i s s i o n e x p i r e s J u l y 4, 1933.)
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Changes at Topeka
Jay F. Close was elected president
of the Citizens State bank, 845 North
Kansas avenue, Topeka, Kansas, to
succeed J. H. Edmondson, resigned.
Close was executive vice-president and
when the vacancy for president came
the directors promoted him immedi
ately.
H arry T. Betzer, cashier, was elec
ted vice-president to succeed Close.
He will serve both as cashier and vicepresident. No other changes were
made in officers or directors.
Edm ondson’s resignation was sub
m itted in the form of a letter. He had
recently resigned as general m anager
of the Charles Wolff Packing Co., the
Topeka division of the Hygrade Food
Products Corp.
The new president has been con
nected with different Kansas banking
institutions since 1914. R eturning
from Gautemala, where he served
with the United F ruit Co., in 1914, he
became cashier of the Farm ers and
M erchants State bank at Greenleaf,
Kan., serving in that capacity until
1917 when he came to Topeka as
bookkeeper at the Citizens State bank.
A short time after that he became
cashier of the Citizens State and when
the Citizens State consolidated with
the old Shawnee State bank, he be
came vice-president. He has served
as vice-president since 1929.
Betzer, who succeeded Close as
vice-president, also has been connect
ed with the Citizens State bank since
its consolidation with the Old Shaw
nee State bank in 1929. P rior to that
time he was associated with the Bet
zer Realty Co., of Topeka.
Two Kansas Banks Merge
Merging of the State bank of H ills
dale with the Miami County National
bank, Paola, recently was announced
by H. W. Koeneke, state bank com
missioner.
The Hillsdale bank had approxi
mately $70,000 deposits.
New Cashier at Halstead
W alter Rupp arrived in Holstead,
Kansas, recently from Alva, Okla.,
and has assumed his responsibilities as
cashier of the Farm ers State bank fol
lowing the resignation of Clarence W.
Flaming.
Mr. Rupp has served as cashier of
the F irst National bank of Alva,
Okla., during the past five years which
position he resigned to accept the one
in Halstead.
He is a member of the American
Legion at Alva.
Kansas Bankers Meet
Bankers of twelve counties, 400
strong, members of group seven of the
Kansas Bankers Association, convened
at the Masonic Temple October 17 as
guests of the H utchinson Clearing
House Association.
Group seven is composed of bank
ers from Comanche, Barton, Edwards,
Hodgeman, Ness, Kiowa, Reno, Paw
nee, P ratt, Rice, Stafford and Rush
counties. C. M. Branch, Hutchinson,
is chairm an; Wm. M. Ruddick, Plutchinson, is secretary.
The all day session opened at 8 :30
o’clock at the Masonic Temple with
registration. A banquet and speaking
program at 6 :30 o’clock concluded the
convention.
Prof. Josh Lee, of the Oklahoma
State University at Norman, Okla.,
gave one of the featured addresses on
the subject, “The Pot of Gold.” R e
cently Prof. Lee gave this address be
fore a state convention of bankers in
Denver.
Rev. IL T. Scherer, pastor of the
F irst Presbyterian Church, read the
invocation. Addresses were given by
C. M. Branch, president of the Citi
zens Bank, Hutchinson, and C. O.
Chandler, chairman of the board of
the F irst National Bank at W ichita.
FOUR LEGAL QUESTIONS
OF INTEREST TO BANKERS
( C o n tin u e d f ro m p ag e 6)
“W hen the owner of a note, for rea
sons satisfactory to himself, assigns it
to another, thereby vesting in him the
full legal title, the assignee becomes,
so far as the debtor is concerned, the
real party in interest. W hen the oblig
or is sued by such assignee ( no claim
as innocent purchaser being involved),
he can make any defense he could
have made against the assignor, he is
fully protected against another action,
and in no way is it a m atter of the
slightest concern to him w hat arrange
ment between the bank and the origin
al creditor occasioned the assignm ent,”
the court said.
Proof
S h e : Anybody would think I was
nothing but a cook in this h o u se!
H e: Not after eating a meal here!
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Federal Reserve Bank of St. Louis
profits or
" paper "
PROFITS?
¡ORPORATE TRUST SHARES are designed for th e
in v esto r in terested in realizing th e g reatest possible
re tu rn s from funds conservatively invested.
CORPORATE
TRUST SHARES
represent an ownership in
terest in these 28 companies.
The Chase National Bank of
the City of New York, Trustee
T h ere are two theories o f conducting investm ent accounts,
both of which have their advocates. One converts all stock
accruals into cash and treats the whole as income. T h e other
allows such accruals to remain in the form o f increasing
equities. T here are good reasons for preferring either plan,
and the investor should choose that best suited to his needs.
«
RAILRO ADS
Atchison, Top. & Santa Fe
Illinois Central
Louisville & Nashville
New York Central
Pennsylvania Railroad
Southern Pacific
Union Pacific
Corporate T ru st Shareholders believe in taking cash p rof
its when they are available, on what m ight be term ed a “ bird
in hand” policy. U n d er the terms o f this T ru st all divi
dends and other distributions from the underlying stocks,
plus interest on the Reserve Fund, are paid to the share
holders in cash twice each year. But the number of shares of
each stock in the portfolio remains the same. U nder the
Corporate T ru st Share plan, proceeds from stock dividends
and split-ups may represent in part a return o f principal, but
more generally, and over a reasonable period o f time, they
are the result of m arket appreciation.
As will be seen from a glance at the list, the companies
represented in Corporate T ru s t Shares are among the leading
corporations in America; high grade stocks o f the type proved
to be the most profitable to hold. T h is T ru st brings to small
investors as well as large the full benefits of holding these
stocks, together with the additional benefits of the trust form.
I t provides a very high cash return with assured safety and
flexibility to meet the needs o f various types o f investors.
Price at the market.
OILS
Standard Oil of California
Standard Oil of Indiana
Standard Oil (New Jersey)
Standard Oil of New York
Texas Corporation
UTILITIES
and QUASI-UTILITIES
American Tel. & Tel.
Consolidated Gas of N. Y.
General Electric
Westinghouse Electric
Western Union Telegraph
INDUSTRIALS
American Tobacco
Amer. Rad. & Stand. San.
du Pont
Eastman Kodak
Ingersoll Rand
International Harvester
National Biscuit
Otis Elevator
United Fruit
United States Steel
Woolworth
*
«
M O O D Y 'S C O M P O S ITE
PORTFOLIO RATING "A "
»«
Q C Q
O J J
IN V ESTM EN T H O U SES A N D B A N K S O FFER
AND RECOMMEND CORPORATE TRUST SHARES
A S K YOUR I N V E S T M E N T H O U S E OR BANK
about Corporate T ru st Shares
»«
SMITH, BURRIS & CO.
Central Syndicate Managers
D et r o it / *■ 120 S outh L a S a lle S t r e e t , C hicago / y O maha
This is one of a group of investment trusts sponsored by A d m in is t r a t iv e
a nd
R e s e a r c h C o r po r a t io n
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Federal Reserve Bank of St. Louis
@FedFRASER