Full text of Central Western Banker : October 1928, Volume 23, No. 10

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NEBRASKA STATE CA PITOL

Indian Troubles
In June, 1859, Pawnee Indians drove
off stock, burned houses and th re a t­
ened settlers between the P latte and
the Elkhorn, near the village of Fontenelle.
Om aha troops under General John M.
T hayer marched against them. E x ­
citement in Om aha ran high. In
A ugust, 1864, Home G uards were
form ed by John R. P orter to protect
Om aha against roving bands of
Indians.
The relation of correspondent banks
with the F irst N ational Bank of
Om aha dates back even to the days of
Indian w arfare and pioneer h a rd ­
ships. The F irst N ational Bank of
Om aha has served the middlewest
since 1857.


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First National
I Bank of Omaha
FIRST TRUST COMPANY

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IL L IA M F. A U G U S T IN E , a
vice-president of the National
Shawm ut Bank of Boston, was elected
president of the Clearing House Sec­
tion of the American Bankers Asso­
ciation at its recent convention held
in Philadelphia.

P 1 F T Y Y EA R S of service with one
institution is the record of W illiam
B. Cowen, senior vice-president and
director of the National Bank of
Commerce in St. Louis. W hen he was
seventeen, Mr. Cowen started as a
helper in the passbook department,
where in addition to m aking out pass­
book statements he assisted in filing
checks. He was elected a vice-presi­
dent in 1908.

W*

miles
e tn e i 1 })c ir ik (M :s '
C . T. JA F F R A Y , chairman of the
board of the Agricultural Credit
Corporation of Minneapolis, reports
that the corporation, in its campaign
to promote better and more profitable
farm ing operations in the Northwest,
has financed purchases for farm ers
with advances totalling well over $1,000.000.00. Practically all this money
went for pure bred livestick.

f EA D E R S in the business and fin­
ancial world were shocked by the
recent death of Charles W alker B ar­
ron, president of Dow, Jones & Com­
pany, and publisher of the W all Street
Journal. Mr. Barron had been inter­
ested in financial publishing for a
number of years, and was also the
head of B arron’s Financial Weekly.

ing 6 per cent, priced at 100. The
M etropolitan National Comuany and
the Drake, Jones Company are m ak­
ing the offering.

" f H E F IR S T N A T IO N A L G R O U P
of Minneapolis, comprising the
F irst National Bank, the First M in­
neapolis T rust company, and six dis­
trict banks of the city, are to give
again this winter their usual series
of greatly appreciated radio concerts.
Twenty special program s will be given
over W CCO by the Minneapolis Sym­
phony Orchestra.

p H I C A G O is the location this year
for the annual convention of the
Association of American Bank T ra ­
vel Bureaus. The convention will be
held November 12 and 13 at the Sher­
man Hotel. It is expected that at
least twenty-five foreign countries will
be represented.

'T 'H E O. B. McClintock Company of
jp N. S H E P H E R D has been re-electA Minneapolis m anufacturers of
* ed as executive m anager of the bank vault burglar alarm systems,
American
Bankers A s s o c ia tio n ;
bank vault ventilators, and electrical
Thomas B. Paton re-elected as gener­ tubular chime clock systems, is finan­
al counsel ; W . D. Longyear, who is cing an expansion program by a gold Q N E O F T H E M O ST M O D E R N
vice-president of the Security T rust note issue of $250,000, serial, drawsafe deposit vaults in New York
& Savings Bank of
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L o s A n g e le s, co n ­
cently by the Chase
Voi. 23 No. 10
O C TO B ER , 1928
tinues as treasurer ;
Safe Deposit Comand W illiam G. Fitzp a n y in t he new
wilson continues as
Chase National Bank.
secretary and assist­
The safe deposit sec­
Convention S n a p s h o t s ............................................................. 4
ant treasurer.
tion has a capacity of
31st Annual C o n v e n tio n ...................................... ..... .
5
5.000 b o x e s
from
BY R. W . M O O R H E A D
small ones for indivi­
Seen and Heard in Omaha . ...............................................7
" T H E M IL L IO N BY H . H . H A Y N E S
duals up to the large
1 A IR E C A T T L E
Displaying Our W a r e s ............................................................. 9
size used to hold the
BY C L A R E N C E G. B L IS S
F A N C IE R from the
securities of corpora­
Nebraska’s Big P r o b le m .........................................................10
E ast will rub elbows
tions, e s t a t e s and
The Stock Exchange and the F a r m e r ...........................11
with the cowboy from
trusts.
BY E. H . H . S I M M O N S
the range when they
Legal D e p a r tm e n t...................................................................13
meet in Chicago, De­
TF N E G O T I A ‘Brain Teasers” Contest 14 News of the Stock Yards 31
cember 1 to 8 for the
1 T IO N S now un­
Bonds and Investments 19 South Dakota News . . 34
International L i v e
der way are conclud­
I n s u r a n c e ........................ 25 Kansas News . . . 36
Stock Exposition. The
ed, the New Y ork
Nebraska News . . . 28 Colorado News . . . 3 7
breeder of pedigreed
Exchange will occupy
stock and the feeder
an entire block on
T h e C en tra l W estern B a n k e r of O m a h a
for the m arket will
Broad Street, from
Published monthly at 416 Arthur Bldg., Omaha, Nebraska
both be seen there,
Exchange Place to
Subscription, 25 cents per copy; $2.00 per year.
Entered as second-class matter at the Omaha postoffice.
striving for a place
W all Street. This will
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In Th is Issue

(Continued on Page 24)

Central W estern Banker, October, 1928

4

At the Omaha convention with the

Central W

estern

B anker

cameraman.

According to group numbers, from left to right:

1. I. Y. Castle, Grand Island; H. P. Heiliger, Lincoln; J. M. Hanson, cashier, Farmers State Bank, Davey. 2. Ray Szvanson, cash­
ier, Antelope State Bank, Neligh; I. R. Alter, president, First National Bank, Grand Island; James F. O’Donnell, assistant cashier Ne­
braska State Bonk, O’Neill. 3. IV. B. Banning, cashier Bank of Union, Union; R. O. Marnell. cashier Merchants National Bank, Ne­
braska City; John M. Spear, Omaha, 4. C. F. Dossett, vice-president Bank of Axtell; Emil Folda, president Clarkson State Bank,
Clarkson, 5. Guy IIoffer, II. M. Byllesby & Company, Omaha, 6. IV. V. Raynor, U. S. Trust Company, Omaha; F. D. Burgess, Jr.,
president Farmers State Bank, Cedar Rapids. 7. H. S. Ringland, cashier First National Bank, Wayne; C. IT. Randall, president Se­
curity National Bank, Randolph. 8. Charles S. Stone, Beemer; Mrs. Stone, Nebraska National Bank, Hastings. 9. M. L. Cramer, cash­
ier Giltner State Bank, Giltner; G. S. Lyon, assistant cashier, Nebraska State Bank, Falls City. 10. Dan V. Stephens, president Fre­
mont Stale Bank, Fremont. 11. G. D. Taft, Harris Trust Company, Omaha; J. T. Baumann, president West Point National Bank,
West Point. 21. H. H. McLucas, vice-president Harbine Bank, Fairbury; George II. Gutru, president Newman Grove State Bank,
Newman Grove.

Central W estern Banker, October, I92S

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Annual
A N A T T E N D A N C E of more than

eight hundred bankers and visit­
ors, general optimism regarding N e­
braska’s business year, widespread be­
lief that banks are generally beingplaced on a more stable basis, and a
concerted movement to obtain legis­
lative relief for certain ailments re­
sulting from the N ebraska guaranty
law, were the features of the 1928 an ­
nual convention of the Nebraska
Bankers Association held this month
in Omaha. Association officers under
the leadership of President C. A.
Smith and Secretary W m. B. Hughes,
had a fine program arranged and it
went through without a hitch.
W E D N E S D A Y , OCT. 17: The
opening session of the convention was
held W ednesday afternoon in the
beautiful auditorium of the Live Stock
Exchange Building at the Stock
Yards. The meeting was called to
order by President Smith and the in­
vocation was given by Robert
L. W heeler of Omaha. F. H.
Davis, veteran Om aha bank­
er and president of the Omaha
Clearing House Association,
delivered the address of wel­
come, saying that Nebraska is
feeling good and that the state
is confident of a good crop
and industrial year.

Wants Boosters
Responding to the welcome
address, Cullen N. W right,
who styles himself the social
vice-president of the Platte
Valley State Bank of Scottsbluff, and who has also at­
tained a wide reputation as
the Will Rogers of Nebraska,
thanked Om aha bankers for
their warm welcome and
urged all Nebraska bankers to
boost Nebraska. H e said the
state has no place for the man
who does not think it’s the
best state in the Union.
Following this, President C.
A. Smith delivered his annual
address, the gist of which a p ­
pears elsewhere in this issue.
One interesting feature of Mr.
Sm ith’s talk was in regard to
protection against bank ban-


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By R. W . M o o r h e a d ,
Editor
dits. H e stated that in his opinion
banks have too many curtains, private
rooms and cages, thus shutting off the
bank from the public eye and thereby
extending an open invitation to bank
bandits.
The report of Secretary W illiam B.
Hughes was in printed form, and em­
phasized the following p o in ts:
1. A decrease in the number of mem­
bers, due to a smaller number of
banks in the state, but a gain in
member percentage, showing now
98% per cent as against 97% per
cent last year.
2. An increase in total income, de­
spite the reduced membership.
3. A very satisfactory development
of the county organization system.
4. Several constructive meetings of
the taxation committee.
5. Encouraging reports of the insur­

ance and bond business campaign
of the banks.
6. The initiation of the proposal of a
reward for dead bank bandits.
7. Agitation for reduced interest
rates.
8. A very helpful series of Spring
Group Meetings.
The report of T reasurer F rank
Boyd, vice-president of the Omaha
National Bank, showed a total income
of $22,259.13 and a total expense of
$22,217.83.

Explains Stock Exchange

Then followed the report of the
Executive Council by F. R. Haggert,
chairman, who is vice-president of the
St. Paul State Bank, emphasizing in
particular the various meetings held
by the council during the past year.
E. PI. Simmons, president of the New
York Stock Exchange, then delivered
an inspiring address on “The Stock
Exchange and American A griculture,”
in which he emphasized the
close co-operation that is nec­
essary between all lines of
business and the benefits that
are derived by all lines of
business, including agricul­
ture, from this immense m ar­
keting place for securities.
His address in part will be
found elsewhere in this is­
sue.
Mr. Simmons was followed
by M. W. Borders, Kansas
City attorney and farm er, who
discussed “Private M arket­
ing.” Mr. Borders pointed
out that the hog market, in
particular, is being subjected
to terrific declines at various
times through the persistence
of packers in buying direct.
He declared that unless some­
thing is done to curb this trend
the great public markets, such
as the ones at Omaha, Kansas
City, St. Joseph, Sioux City
and Chicago, will eventually
be forced to discontinue busi­
ness. Either the public m ar­
ket system is right; and both
cannot be right, he said.
The Fontenelle Hotel, Nebraska convention headquarters
Central W estern Banker, October, 1928

6

C u l l e n N. W r i g h t
D an V . S teph en s

F rank B oyd
He appealed to Nebraska bank­
ers to get these facts before customers,
and to get back of any legislation
which will curb the practice of private
marketing.
T H U R S D A Y , OCT. 18.—The
Thursday morning session of the con­
vention enjoyed at its outset a splen­
did group of songs by the Hub-Den
Serenaders preceding the call to order
and announcement of committees by
President Smith. Then followed one
of the most inspiring addresses of the
Convention— that of Hon. F. R.
Smith, combining an excellent delivery
with a real message, saying that the
temptations of banking are great. He
dwelt particularly on the question of
“stewardship.” He said the line be­
tween stewardship and ownership is
sometimes hard to define, and that
accounts in great measure for illegal
banking methods that occasionally
come to light. H e asked, “W ho are
the stewards of the bank’s adm inistra­
tion?” answering this by saying first,
the officers; second, the directors, and
third the stockholders. H e said, in
p art: “It is the duty of a bank’s o f­
ficers to recognize the obligations of
their stewardship. They should grasp
every opportunity to become more in­
telligent officers through careful study
of banking problems and conditions
and should be in attendance at every
meeting where common banking prob­
lems are discussed.
“The directors of the bank should
maintain the closest contact with their
institution. They should give the
same conscientious attention to its a f­
fairs as to their own private business
affairs. They must realize the obliga­
tions of their stewardship.
Central W estern Banker, October, 1928

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“A bank’s stockholders likewise
have a definite stewardship. Any
stockholder who holds his stock solely
for dividend purposes is not serving
his community intelligently. Any bank
whose stockholders are made up of
this class eventually costs its commun­
ity dearly. There must be a profit ac­
count in every bank to take care of
losses that are always inevitable in
even the most efficiently conducted
banks.”

“No Moral Responsibility”
Mr. Smith said that guaranty laws
such as are in effect in Nebraska, and
were in effect in South Dakota, force
upon bankers a type of stewardship

P

h il

H

all

Newly elected president, Nebraska
Bankers Association

over which they have no control and
which they did not seek. He said fail­
ure always follows such stewardship.
W here there is no adm inistrative au­
thority there is no moral responsibility
attached, he declared.
Answering the question, “W hose
Bank is This ?” he said, “directly the
m ajor part is owned by the depositors,
but in a broader sense the community,
the county, the state, the nation, and
even a group of nations, own the bank,
because it is a part of a system, in­
ternational, if you please.”
Mr. Smith was followed by Dan V.
Stephens, well known Nebraska bank­
er, president of the Frem ont State
Bank, who talked inform ally of the
“Experiences of the F irst Nebraska
Regional Clearing House Association”
of which he is the sponsor. He brought
out many of the same points he has
discussed before various state associa­
tions and which have been published
at various times in this magazine. He
pointed out that one of the biggest
benefits from the plan is the training
and co-operation received from the
quarterly, round table discussions p ar­
ticipated in by all member bankers and
presided over by capable chairmen. In
this way, he said, the bankers become
better bankers and learn not only more
about better banking methods, but
they learn to appreciate likewise the
value of co-operation in handling all
the m utual problems that arise. He
showed how our present system of
examinations, both state and national,
are pitifully inadequate, no m atter
how well conducted are the various
state departments, incidentally paying
high tribute to Secretary of T rade and
Commerce, Clarence G. Bliss of N e­
braska. Mr. Stephens said that the
regional clearing house plan of ex­
amination is far superior and is able

7
to handle emergencies in much better
shape.

An Honored Guest
“ Sound Bank M anagem ent” was
discussed by the honored guest, Craig
B. Hazlewood, vice-president of the
Union T ru st Company of Chicago, and
now president of the American Bank­
ers Association. Mr. Hazelwood said
that the banking profession is pre­
pared to solve its own problems and
that the time is ripe to begin to crys­
tallize more definitely than ever be­
fore the principles of good m anage­
ment, standards of income, invest­
ment, expense and employment, tie
said that we must determine by care­
ful study what is the smallest bank­
ing unit that can be established and

NEW ASSOCIATION OFFICERS
N ew officers of the Nebraska
Bankers Association, elected at
the Omaha convention this month
are:
President, Phil Hall, president
Greenwood State Bank, Green­
wood State Bank, Greenwood.
Chairman executive council, P.
R. Easterday, vice-president First
National Bank, Lincoln.
Secretary, W m . B. Hughes,
Omaha, (reelected).
Treasurer, A rth u r L. Coad,
cashier, Packers National Bank,
Omaha.
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operated soundly and profitably. He
pointed out that we must plan scientif-

ically the proper percentage of the
bank’s funds to place in different in­
vestments, and predicted that the
American Bankers Association this
year will endeavor to work out some
real constructive program on this sub­
ject for its members. He said in
summary :
“Gradually we shall all have in
banking what we require of our cus­
tomers in other lines—control by men
with a genius for management, con­
sideration of every essential of the
problem, m arket analysis, elimination
of unprofitable units and wasteful
practices, closer budgetry control, eco­
nomical and profitable operation,
faster turnover of capital, lower
(Continued on Page 26)

leen and Heard in Omaha
R E T IR IN G P R E S ID E N T C H A R ­
LE S A. S M IT H has endeared himself
to all Nebraska bankers by his allaround efficiency in handling Associa­
tion affairs the past year. In his an­
nual address he expressed his thanks
for the honor that had been confer­
red upon him, saying that it was a
somewhat t a r d y acknowledgment,
since he was unable to be present at
last year’s meeting, serving at that
time on a jury.
R O Y A L H O L B R O O K , Commer­
cial Engineer of Ames, Iowa, who has
spoken before a great number of com­
mercial and educational groups, was
an interested visitor at the last session
in which Dr. Sweeney of Ames spoke
on “The Utilization of A gricultural
W astes.” Mr. Holbrook delivers prac­
tically the same address at various
times and collaborates with Dr.
Sweeney in getting across this mes­
sage. H e was at the time in Councd
Bluffs, where he delivered a similar
talk before the bankers of Southw est­
ern Iowa.

By H. H. H aynes ,
Associate Editor
feature of the banquet was the fact
that it was “speechless.” At the out­
set President Fred H. Davis arose and
said : “Ladies and gentlemen, I wish to
announce that there will be no for­
mal speaking this evening and I trust
that you will enjoy yourselves.” It is
reported that all did, immensely. Sev­
eral other bankers and members of
trust companies of Om aha took ad­
vantage of the occasion to likewise en­
tertain correspondent bankers and
wives.


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JO H N H O G A N , form er Iowa
banker, now vice-president of the Con­
tinental National of Chicago, and T.
S. Robinson, assistant cashier, both at­
tended the Nebraska meeting, spoke
optimistically of the plans of the bank
now waiting on the merger with the
Illinois M erchants Trust. Mr. Robin­
son is a great football fan and was an
old football player. He has a son who
is now on the varsity squad at D art­
mouth.
TH E BANKS AND TR U ST
C O M P A N IE S of Omaha, as usual
handled the entertainm ent in wonder­
ful shape. Some of the features in­
cluded the W ednesday morning trip
through the Stock Y ards and pack­
ing houses, the luncheon at the Live
Stock building on W ednesday noon,
the tea and fashion show W ednesday
afternoon for bankers’ wives, inform al
dancing both W ednesday and T h u rs­
day nights at the Fontenelle, the
luncheon and bridge for Thursday a f­
ternoon at the residence of Mr. and
Mrs. A. L. Schantz, and the parties
both W ednesday and Thursday even­
ings at the various Omaha theatres.

S E C R E T A R Y C LA R E N C E G.
B L ISS got a good laugh from the
audience when called upon to intro­
duce his colleague, the Hon. Fred R.
Smith, superintendent of South D a­
kota banks, by relating his “hound
dog” story. Secretary Bliss has a
great many responsibilities, but is con­
ducting the departm ent in splendid
shape and his work is so recognized by
Nebraska bankers in general.
T H E F IR S T N A T IO N A L B A N K
O F O M A H A gave a dinner W ednes­
day night during the convention to 2$0
Nebraska bankers and their wives. A

FO R M E R G O V E R N O R CHAS. W .
BRY AN entered the political arena
during the convention, coming out
with the statem ent that the present
state adm inistration for Nebraska and
the national bankers are attempting to
kill the guaranty fund and that the law
is rapidly becoming nullified.

Guy C. Kiddoo, vice-president, Omaha
National Bank, zvho was chairman of the
golf committee at the Omaha convention.

F R A N K BOYD, serving as chair­
man of the general convention com­
mittee this year did it up in great style
ably assisted by several other prom i­
nent Om aha bankers. In charge of
Central W estern Banker, October, 1928

8
the reception committee was F. C. meeting the old friends and makingHoracek. O ther committee chairmen new ones gives him an extra thrill at
include J. R. Owen, committee of gen­ every convention.
eral entertainm ent; Mrs. A. L.
Schantz, committee of local women;
C. L. Owen, automobile com m ittee; E. ^ B U S IN E S S IS F IN E in South
F. Folda, committee on railroad tra n s­ Omaha, according to W . P. Adkins,
p o rtatio n ; R. D. Miller, theatre com­ president of the Live Stock National
mittee ; A. F. Coad, dance commit­
Bank. Mr. Adkins says the Live
tee; Guy C. Kiddoo, golf committee; Stock National has gained l]/2 mil­
W . H. Dressier, South Omaha a r­ lion in deposits since last June.
rangements committee.

M. S. D IR K S, cashier, State Bank
of 1rvington, won the C e n t r a l W e s t ­
e r n B a n k e r golf trophy, at this year’s

convention tournam ent, with a gross
score of 84 for the 18 holes at the
Omaha Field Club. J. F. Burke, presi­
dent, Sutton State Bank of Sutton,
was runner up. Mr. Sutton won the
cup last year and the previous year,
and now has two legs on it for perm a­
G.
A. W E S T , the Chicago vice- T.
H. PO LLO C K , president of the nent possession, had he won it this
president of the National Shawmut Farm ers State Bank of Plattsm outh, year. About twenty bankers entered
Bank of Boston, attended the conven­ Nebraska, was a convention visitor.
tion again this year. Mr. W est has
Mr. Pollock said it only took him 30 the tournam ent. Guy C. Kiddoo, vicepresident, Om aha National Bank, was
not missed a Nebraska Bankers con­ minutes to drive from Plattsm outh up
vention for several years and he says
to Omaha.
in charge of the golf committee.

Nebraska Convention Snapshots

Snapped at the 31st annual convention of the Nebraska Bankers Association. By groups, from left to right:
1. S. J. Weekes, president O’Neill National Bank; E. F. Longhorst, Nickerson; EL W. Moeller, president Farmers State Bank,
Nickerson; W. F. Lallman, vice-president Farmers State Bank Nickerson. 2. Wm. Bucher, president Farmers State Bank, Columbus;
F. M. Penny, Omaha; J. M. Brower, president Fullerton National Bank, Fullerton. 3. H. C. Peterson, president Chappell Slate Bank,
Chappell. 4. H. J. Claassen, Peters Trust Company, Omaha. 5. Geo. R. Froelich, cashier Farmers Bank, Burwell. 6. R. H. Kroeger,
assistant cashier Live Stock National, Omaha. 7. R. T. Flotree, cashier Farmers State Bank, Albion. 8. C. E. Taylor, vice-president
Citizens State Bank, St. Paul.

Central W estern Banker. October, 1928

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9

D isplaying O ur W ares
By C l a r e n c e G. B l iss
Secretary o f Trade and Commerce, State o f N ebraska
(F rom address at Nebraska Bankers Convention)

\/lY

first impressions
of an attractive dis­
play was gathered from
the old M other Goose
Story Book.
Just as
Aesop’s F a b l e s a r e
quoted in the Moving
Picture Plays as autority, I shall quote “The
Pie M an.”
Simple Simon met a Pie
Man
Going to the Fair,
Said Simple Simon to
the Pie Man,
Let me taste your
wares.
W here is the boy who
can ever forget that dis­
play of juicy pies—those
attractive wares of the
Pie Man.
Today, the profit and
loss account, the success
or failure of a business house, is
measured by the way they display
their wares. The display windows,
sign boards, the press, and the radio,
disclose the wares of our American
commerce. The competition, the ri­
valry, the desire for leadership, de­
mand that these wares be up-to-date
Viewing this situation from a banker’s
standpoint, and realizing that we have
a keen minded public to serve, it be­
hooves the banker to display his
wares.

Nebraska Banking Laws
N ebraska bankers and the patrons
of the banks of the state should keep
in mind that different sessions of the
legislature of Nebraska in the past,
have given a great deal of attention
and thought to the operation of banks.
O ur neighboring states are continually
referring to the good banking laws of
N ebraska for their legislative consid­
eration.
I refer to the Nebraska
charter law, which went to the refer­
endum of the people in 1922, our lic­
ense law for executive officers, our no
fund check law, and similar laws that


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Federal Reserve Bank of St. Louis

are the envy of other states. The
legislatures have recently, in the cen­
tral western states, quite generally
discussed branch banking with the
result that laws have been passed in
Nebraska and neighboring states
against that type of bank.

The Board of Directors
The independent system of banking
which we enjoy today, is governed by
a board of directors required by stat­
ute, of every bank. The relationship
existing between the board of direc­
tors and the departm ent of banking, is
one which is probably not fully under­
stood. This board of directors is re­
quired to meet at least twice each year
for the purpose of checking up the
affairs of the bank.
The banking departm ent sends out
a set of blanks for these directors,
who check the loans carefully and the
circumstances surrounding them, to­
gether with the deposit accounts. W e
have on file in the department, these
reports of the directors and the com­
plete minutes of these meetings for
every bank, made twice each year

directly to the depart­
ment.
The N ebraska
system of bank examina­
tion requires the calling
in of the directors by the
examiners
when
the
bank is examined, and
these directors are al­
ways questioned relative
to the loans in the note
case and the deposit ac­
counts. Considering the
Nebraska safe - guards
that are placed around
the operations of a bank,
the losses caused directly
by defalcations of a,
cashier or any other
bank officer hired by the
board of directors, has
been reduced to the low­
est point in banking his­
tory. The board of di­
rectors in the average
Nebraska bank is the
dominating power and
influence surrounding that bank and
they are men whose integrity and
standing in their different communi­
ties is unquestioned.

Strong Reserve Position
The keeness and business ability of
these directors of banks all over the
state, is evidenced today by the last
consolidated report of the Nebraska
banks. The consolidated report given
to the press in October, shows that
the average Nebraska bank can pay
the depositors in that bank over onethird of all their deposits on demand
without asking a single borrower to
pay any of the notes in the note case.
The management of these banks is
equal in every way to the demand that
can be made upon them and we have
no reason to look to any of our neigh­
bor states here in the central west, to
compare our situation with theirs, only
to do so with credit to Nebraska.

Standard Accounting System
W hile we are displaying our wares,
we must not overlook the records and
books and accounting system that is
now standard all over the state as
Central W estern Banker. October, 1928

10

compared with the books and account­
ing systems kept by banks in other
states. Just as the farmer uses the
latest machinery on his farm, the
same is true in every Nebraska bank
with reference to l30okkeeping and
posting machines. Nebraska bankers
use the same bookkeeping and the
same posting machines as you will
find in some of the larger banks in
New York City. The ledgers and
records prescribed by the department
of banking and required by all the
banks, are the standard forms used

by the largest banks, both state and
national, throughout the country. The
safe-guards that are thrown around
the depositors are as complete and
certain as the latest inventors of book­
keeping machinery can devise. This
standard bookkeeping machinery used
in all of the banks makes a complete
and definite record available to the
directors and examiners in checking
the bank.

Stockholders Dividends
The average Nebraska bank has
from 10 to 50 stockholders. These

stockholders are farm ers and business
men scattered all over the state. These
stockholders have gone through the
depression period since the great w ar
and have not only taken care of the
losses in their own banks, but have
contributed to pay losses in failed
banks. Banking service rendered by
the banks of Nebraska, is just as nec­
essary to the solidity of the state as
the services of the railroads or any
other public service. W here is the
patron of the railroad company or
telephone company, who is not willing
(C o n tin u ed

on

Page

16)

lays Guaranty Law Is
Nebraska’s Bis Problem
'T 'H E R E is no subject of greater
A importance to the bankers of N e­
braska than the final disposition of the
guaranty law question, retiring presi­
dent C. A. Smith, told members of the
Nebraska Association at their annual
convention this month in Omaha.
Speaking in particular on this point,
Mr. Smith said:
“During the year in which I have
served as your president 1 enjoyed the
opportunity to visit many com­
munities and talk with a great many
of the bankers and members of our
association.
“I also had the pleasure of confer­
ring with our Governor, with Clar­
ence Bliss, Secretary of Trade and
Commerce and meeting with the
G uaranty Fund Commission.
“In nearly each instance, the G uar­
anty Fund was the m ajor subject of
our discussion.
“There is no secret about the fact
that something must be done and done
quickly so far as this phase of our
state banking situation is concerned.
“W ith something over a hundred
bank failures and several million dol­
lars of liabilities, it goes without say­
ing that the burden cannot be borne
'much longer by the state banks.
“If one analyzes the bank failures
it is found that while a very few may
be due to dishonesty, the m ajority of
them I believe may be ascribed to the
fact that the community was over­
banked.
“W hen a community of 1000 to
1500 people has three banks it seems
to me that there is little or no oppor­
tunity for them to show a profit and
it would be a pretty safe bet to say
that careful scrutiny would disclose
that one of the three was heading for
the abyss of failure. W e have apCentral W estern Banker, October, 1928

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Federal Reserve Bank of St. Louis

Something must be done, and
done quickly, says retiring
president of state association

C. A. S m i t h
proxim ately one bank for every 1200
of population in our state as compared
to one bank for every 4000 of popula­
tion in eastern states. In spite of the
greater density of population in the
east it is obvious that in many in­
stances we are overbanked.
“As bankers we may not be willing,
at this time to believe or acknowledge
that we are approaching the dawn of
a new day in banking which contem­
plates and makes necessary fewer,
stronger and more profitable banks.
Tn my estimation it will mean that
fewer bank charters will be granted,
unnecessary competition discouraged,
the elimination of the weaker institu­
tions and consolidation of the stronger
ones.

“It behooves us as bankers to
recognize the new conditions which
exist, to appreciate the fact that there
should be more real bankers in the
banking business and that there should
be fewer and stronger banks and
above all, greater care should be exer­
cised in investigating the qualifications
and fitness of those applying for bank
charters.
“Nebraska has bank laws that are
second to none but these laws control
the future and do not rectify the mis­
takes of the past. W e have the $25,000 minimum capital stock law, the
license law. Both of which you are
familiar with. But they have been
enacted in the proverbial manner of
locking the barn after the horse is
stolen.
“I am sure that the Banking De­
partm ent of the state is watching con­
ditions down to the minutest detail.
1 know they are scrutinizing banks
much more closely than was the
custom a few years ago. I also know
that charters will not be granted un­
less applicants can prove clearly that
a new bank is needed.
“It is the future that concerns us.
The past is history and valuable to us
only as a guiding lesson. The public
is demanding and it has a right to
demand that when money is deposited
in a bank, state or national, these
funds will be returned intact when
demanded or due. A weakening of
oublic confidence is the last thing any
banker can wish for. Yet constant
failures cannot help but have an
effect. There is a remedy for this
some place. It is the task of every
banker to contribute his bit toward
arriving at a solution.

11

through our established stock ex­
changes to direct capital into agricul­
'T ' H E New York stock exchange, by
ture
just as in the past it has been
■*- providing a ready m arket for the
directed
into commerce and m anu­
exchange of securities, renders a
facturing.
I have always felt myself
distinct service to all lines of A m er­
that some form of share financing for
ican business, including agriculture,
agriculture, if it could be soundly de­
E. H. H. Simmons, its president, told
vised, m ight in a financial way prove
members of the Nebraska bankers
of real benefit. The farm er, as I see
association at their Om aha conven­
it, does not need new creditors, but
tion this month.
rather new financial partners. In con­
Also, there is a strong possibility
sequence, the farm er’s financial salva­
that the exchange can at some future
tion would seem rather to consist in the
time be of direct service to agricul­
issuance of shares of some sort than
ture in furnishing a m arket for agri­
m the continued issuance of mortgage
cultural
securities, he predicted.
and other bonds, under the burden of
Speaking in part on this subject Mr.
which
he already suffers. The man
Simmons sa id :
who
can
invent a feasible way to en­
“The serious character of the Am ­
able
our
farm ers as a class to obtain
erican agricultural problem is today
additional capital inexpensively from
E . H . IT S i m m o n s
very generally recognized, not only in
new s h a r e
t h e agricul­
partners, will,
tu ral districts
in my opinion
themse I v e s ,
have p e r ­
but also in
formed a
the large E as­
most valued
tern centers
service f o r
of population.
agricul t u r e ,
W e all m ust
by opening to
recognize that
agricu l t u r e
there can be
an immediate
no great or
a c c e s s
lasting pros­
through the
perity in this
country if depression reigns on the extent able to perform a similar func­ stock exchange to the saving of the
farms. Both our foreign and our tion for agriculture, because of the entire American people.
domestic trade are ever profoundly fact that there are practically no such
Might Be Adopted
bound up with our agricultural pro­ agricultural securities. As I have
It is, of course, dangerous to press
duction and prosperity.
H istory pointed out, the capital directed by the
too far the analogy between agricul­
stock
exchanges
into
certain
industries
clearly shows that the nation which
ture and industry.
Nevertheless,
can no longer feed itself will inevit­ whose products and services are ex­
there
is
already
evidence
that certain
tensively
employed
by
farm
ers,
have
ably suffer under a great industrial
to that extent been able to perform a methods which have proved very suc­
and financial handicap.
genuine even though indirect service cessful in industrial enterprises, might
It Might Help
to American agriculture. Yet Am er­ be adopted to serve agriculture also.
“I must confess that I personally ican agriculture itself has rarely been One of the chief of these consists in
know very little about agriculture, organized in the form of large corpor­ the utilization of waste products. O ur
and do not pretend to be able to offer ations like American industry, and in chemists are in their field m aking
any easy or steady panacea for our consequence little direct contact be­ rapid progress. Almost every month
present agricultural situation. I only tween the stock exchange and agricul­ we see the announcement that chem­
ists have succeeded in utilizing agri­
wish to leave one thought with you—• ture has been possible.
I am far from feeling certain that cultural by-products as the raw m a­
that if closer relationships between
I
am
making a suggestion here which terial for making new and useful in­
our securities m arkets and American
agriculture could be established, it is either practical, or perhaps particu­ dustrial materials. Already on the
m ight assist agriculture in very vital larly pleasing to the American farm er list of the Stock Exchange one can
ways. I have already pointed out that himself. For, as we all realize, our find a good many different companies
stock exchanges, by reason of their farm ers have always proved intense which are extensively engaged in this
ability to distribute securities among individualists, and are likely to con­ business. I need not mention the re­
investors, have in the past been able tinue such. Nevertheless, the gradual markable utilization of the whole corn
to direct an almost constant flow of development of cooperative marketing plant by the enterprising chemists and
capital into American commercial and in this country may sooner or later m anufacturers of today. If some
industrial companies. But the stock take the form of stock corporations more evident way can be devised for
and if it does, the way lies open giving actual value to agricultural byexchanges have not been to the same
Central W estern Banker, October, 1928

GJhe

New York Stock Exchan
and the Farmer


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Federal Reserve Bank of St. Louis

12
products which at the present time are
completely valueless to the farm er, we
will have taken another very funda­
mental step in stabilizing American
agriculture and assisting in the cause
of agricultural prosperity. I may add
that there is very much more inter­
est in financial circles in constructive
and soundly undertaken enterprises of
this sort than perhaps the farm er him­
self realizes, and the Stock Exchange
is only one of the parts of our finan­
cial machinery which may in this re­
gard be able in the future to perform
a constructive task with great benefits
to agricultural producers, as well as
to American consumers everywhere.
“I need not remind this audience
that we are living in an age of rapid
and momentous scientific discoveries.
Science has taken the whole world for
its domain. It has attacked the prob­
lem of transportation, not only to im­
prove the already familiar inventions
of the steam railway and the steam
vessel, but also to launch high into the
air those astonishing airplanes and
dirigibles which already have begun to

revolutionize travel on both the land- regions. In the movement, the imme­
ways and the sea-ways. Scientific diate need is of course for the practi­
methods of m anufacturing production cal farm er, the scientific engineer and
have cheapened the cost of many pro­ chemist and the far-sighted corpora­
ducts like the automobile, with the re­ tion executive. American finance can
sult of placing them within reach of only stand by to assist the practical ac­
everyone’s purse. Scientific manage­ complishments which their efforts will
ment of business enterprises has en­ yield. Yet such assistance, already
abled our industrial companies to being rendered indirectly and p ar­
m aintain unparalleled wage-scales, tially, may still develop into a closer
and more intimate partnership be­
and still decrease per unit costs by
tween American finance and American
quantity production.
agriculture. In such a development,
“But the scientific movement of the I can assure you that I speak for the
age must not halt within our cities, New York Stock Exchange, when I
and limit itself to only industrial or say that, if a way to do it were dis­
commercial processes. It must go on, covered, its facilities would be placed
to achieve new trium phs on the farm s as enthusiastically and completely at
of the nation. W ith even my scanty the service of American agriculture
knowledge of American, agriculture, as they have already been at the ser­
it is nevertheless apparent that just vice of American commerce and in­
this scientific rationalization of agri­ dustry. In the continued effort to
cultural work and agricultural life has establish in this country a firmly
already begun. Its further prosecu­ founded and universal prosperity, we
tion means not only[wider spheres of must not fail to place all our scientific
usefulness for our industrial, utility knowledge, all our organizing ability
and commercial enterprises, but also and all our financial facilities behind
an increased productivity on our that oldest and most basic of all our
farm s and a better and finer way of industries — American agricultural
life throughout our vast agricultural production.

B. A. President Outlines
Banking Pros ram
£ R A I G B. H A Z E L W O O D , vicepresident of the Union T rust Com­
pany, Chicago, was recently installed
as president of the American Bankers
Association. At the same time, John
G. Lonsdale, president of the National
Bank of Commerce in St. Louis, and
Rome C. Stephenson, vice-president of
the St. Joseph County Savings Bank,
South Bend, Indiana, took over their
duties as first vice-president and sec­
ond vice-president respectively. The
election took place at the fifty fourth
annual convention of the association
which was held in Philadelphia, Pa.
In his acceptance speech, Mr. Hazel­
wood referred to the im portant ac­
complishments of the American Bank­
ers Association in the past and out­
lined his program for the coming year.
“I propose,” said Mr. Hazelwood,
“that we emphasize this year the study
of all phases of bank technique and the
dissemination of inform ation regard­
ing standard practice and efficient and
profitable bank operation. In particu­
lar, 1 see great possibilities and need
for research and leadership in m atters
of bank management and adm inistraCentral W estern Banker, October, 1928

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Federal Reserve Bank of St. Louis

tion. If there is any lesson to be
learned from studies and surveys of

C r a ig B. H a z e l w o o d

the banking business which have been
made in this country, it is the im pera­
tive necessity for better management.
“The new adm inistration means to
promote the regional examination
plan. This plan has two objectives,
Mr. Hazelwood explained, “first, more
thorough and constructive bank ex­
am ination; and, second, the organiza­
tion of community interest for the dis­
cussion of bank problems. W e will
employ in this effort the most expert
counsel we can obtain and the best
brains we can find in our organization.
“I am of the opinion,” said Mr.
Hazelwood, “that the time has come
when the American Bankers Associa­
tion, which includes in its membership
most of the skilled men of our pro­
fession, should recognize the im port­
ance of management in the bankingfield, and should insist upon the high­
est professional standards among those
charged with the responsibilities of
managing our banks. I believe that
the banking profession will rise to a
new dignity, that banking practice will
become infinitely more skillful, and
that the standards of safety will be
placed upon a much higher level.”

13

W hen a Bank Refuses To
Honor a Check
By T h e Central W
T O U R IN G banking hours the tellers
■ ^ o f a bank are required very often
to honor and pay depositors’ checks
which are presented over the counter
to them by parties unknown to the
bank. A stranger may present proper
identification credentials so that the
check he holds is paid.
There is a possibility that a bank
teller may refuse to honor a check
properly presented, drawn on a depos­
ito r’s account that has a sufficient bal­
ance to pay the check, due to some
mistake made by the bank employee.
The holder of the check may have
properly presented the same for pay­
ment and there is good and sufficient
reason why it should not be honored.
This presents a situation wherein the
holder of the check and the depositor
may both be seriously embarassed. Is
there any liability placed on the bank
because of its failure to properly carry
out its agreement with its depositor i
A depositor of a bank drew a check
upon the bank payable to Conn for
$66.00. This check was delivered to
Conn on May 30, but post dated June
2, and was given in payment of a bill
of goods. At the time the check was
delivered Conn did not have $66.00
to his credit in the bank.
On the same day, just prior to the
lime the depositor gave the $66.00
check to Conn, he had applied to the
bank, of which Conn was president,
but who did not handle the transaction
for a loan of $66.00. The loan was
to be made provided the depositor ob­
tained the endorsement of another
party who was acceptable to the bank,
and return the completed note within
an agreed time. The depositor then
went to Conn’s store and explaining
the transaction he had with the bank,
applied for a bill of goods. Conn o f­
fered to sell the bill of goods am ount­
ing to $66.00 upon the depositor giv­
ing his check upon the deposit p ro ­
ceeds of the not for that amount. The
transaction between the depositor and
Conn was then closed. The goods
were delivered, and Conn given a
check post dated June 2, on the an ­
ticipated deposit of $66.00.
The depositor who lived some dis­
tance from the city in which the bank
was located, immediately went home
and at some time the next day ob­


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estern

B a n k e r Legal D epartm ent

tained the desired endorsement from
his friend, and mailed the completed
note to the bank on May 31.
The letter containing the note
reached the bank the next morning.
The books of the bank showed that on
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“W here checks of a depositor
on a bank are refused payment
and protested fo r want o f funds,
when, in fact, the depositor has
fu n d s in the hands o f the bank
more than sufficient to pay said
check, the depositor will be en­
titled to recover such actual, gen­
eral or specific damage as may be
by him alleged and proven.”
11111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111,11) 1111111) 111111111,1111,1111111

June 2, the depositor had been given
credit for $66.00, the proceeds of the
note.
In the meantime Conn’s book­
keeper, not noticing that the check was
post dated, presented it at the bank
for payment or deposit on May 31, at
which time payment was refused on
the grounds that at that time depositor
had no account with the bank. The
check was returned to Conn the same
day. Subsequent to June 2, the check
was again presented for payment at
the bank. The cashier of the bank
refused to honor the check, made an
endorsement thereon showing “no ac­
count” and returned it to Conn. There
was on deposit at the time, subject to
this check, a sufficient amount to pay
it.
About two months thereafter, the

check not having been made good,
Conn swore out a w arrant against the
depositor under the “bogus check”
statute, and secured payment of the
check, and the prosecution was w ith­
drawn.
In the affidavit, upon which the w ar­
rant was issued, Conn swore “that he
is inform ed and believes that John
Sheaf did on or about June 2, make,
issue, and deliver, receiving at the
time value therefor, his certain check
on the National Bank, payable to the
order of O. H. Conn, for the sum of
$66.00, while he, the said John Sheaf,
had not sufficient funds in the bank to
meet or cause complete payment on
the said check.”
Conn was required, in order to
m aintain in his action, to establish the
fact that when his check was properly
presented, there was not sufficient
funds on deposit to meet the same,
and that the bank had wrongfully re­
fused payment thereof. This Conn was
unable to do.
A bank is the debtor of the owner of
a deposit, and such owner has a right
as against the bank, to have checks
drawn by him, not exceeding the
amount of the deposit, paid immedi­
ately on presentment.
W here checks of a depositor on a
bank are refused payment, and pro­
tested for want of funds, when, in
fact, the depositor had funds in the
hands of the bank more than sufficient
to pay said check, the depositor will
be entitled to recover such actual, gen­
eral. or specific damages as may be
by him alleged and proven.

lllllltlllltlllllllllllllllllllllllllllllMItllllllllllllllllllllMItlllllllMIIIIIIIIIIIIIIIIIMIIIIIIMMIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIMIIIItlllltlllllllllllllllllllllllllllllllllllltlllllllllltllltllllllllllllllllllltlMIIIMIMIIIIIII

O n l y those are fit to live zvho do not fear to die; and none are fit
to die who have shrunk from the joy of life and the duty o f life.
Both life and death are part of the same Great Adventure. N ever
yet was w orthy adventure w orthily carried through by the man who
put his ozvn personal safety first. N ever yet was a country worth
living in unless its sons and daughters were o f that stern stu ff which
bade them die fo r it at need; and never yet was a country worth dying
fo r unless its sons and daughters thought o f life not as something
concerned only zvith the true selfish evanescence o f the individual,
but as a link in the great chain o f creation and causation, so that each
person is seen in his true relation as an essential part o f the whole,
zvhose life must be made to serve the larger and continuing life of
the whole.— From Charnwood’s Life of Roosevelt.
Central W estern Banker, October, 1928

14

Much Intere; t
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1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

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

'T 'H E “Ten Brain Teasers” contest
announced in a recent issue of
T h e C e n t r a l W e s t e r n B a n k e r , in
which a cash prize of ten dollars was
offered for the best answers to the
ten questions listed above, has created
much interest among readers of this
magazine. Vernon G. Smith, cashier
of the W aterbury State Bank, W ater­
bury, Nebraska, wins the money, with
half a dozen other clear thinking N e­
braska bankers close seconds. His
answers to all the questions are pub­
lished on this page, together with the
names of bankers given honorable
mention.
The ten “brain teasers” were ori­
ginally submitted by E. F. Folda, m an­
ager of the bond departm ent of the
Stockyards National Bank of O m a­
ha. All the contestants agree that
Mr. Folda worked out some real
“stickers,” all of them extremely prac­
tical in every-day banking. A nother
set of ten questions will appear in an
early issue of T h e C e n t r a l W e s t ­
ern

Banker.

Taking up individual questions,
Num ber 2, “If one of your customers
ships his fat cattle to Omaha, how can
we make sure that our bank will re­
ceive credit?” brought much interest­
ing comment. Mr. Earned, of H aig­
ler answered this as follow s:
“Have the customer draw draft in
favor of bank with shipping bill (Bill
of Fading) to shipper’s order attached
or Bill of Fading assigned to bank,
proceeds for credit of bank, use of
custom er.”
Central W estern Banker, October, 1928

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Federal Reserve Bank of St. Louis

First Prise— Vernon G. Smith,
cashier, W aterbury State Bank,
W aterbury, Nebr.
Honorable M ention (A year’s
subscription each, to T h e
C en tra l W estern B a n k e r ) :

W . H. Dressier, cashier, Stock
Y ards National Bank, Omaha.
Carl G. Swanson, A ss’t Cash­
ier, Fidelity State Bank, A u­
rora, Nebr.
H. H. Peters, Cashier, Bank
of Yutan, Yutan, Nebr.
Jno. J. Olson, Cashier, Am eri­
can Bank, Gordon, Nebr.
Fred M. Maas, A ss’t. Cashier,
Cones State Bank, Pierce, Neb.
Wm. H. Larned, Cashier, State
Bank of Haigler, Haigler, Neb.

lllllllllllllllllllllllllll|l|||lllllllllllllll!lllli!IMlli:tllllllllllltlllllllllllllllllllllllllll||||||||||||t|||||||||||4llllllllllllllltlllllllltlllllllllllllllllllllllllllllllllllllllllllllllll]lllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllll'

The W inning Answers
1.
2.
3.
4.
5.

6.

7.
8.

9.

10.

By V e r n o n G. S m i t h ,
Cashier, W aterbury State B ank, W aterbury, Nebr.
It is not obligatory upon a bank to certify the checks of a depositor.
By obtaining consent of the shipper and then wiring the selling agent of
the shipper to deposit proceeds of the shipment with our correspondent
for our credit and credit and advice of the shipper.
A post dated check cannot be legally protested for non-payment, not
being due.
A chattel mortgage cannot be legally drawn to include after acquired in­
debtedness.
It is not possible to draw a chattel mortgage on a stock of merchandise
that will legally cover and include stock to be purchased in the future un­
less the mortgagee, with written authorization of the m ortgagor, retain
possession of the stock.
The words “ future advances” included in a chattel mortgage are not pro­
tection on money later advanced unless notes for such advances be made
prior to the time of the execution of the mortgage and be specifically
mentioned in such mortgage and made a part of the mortgage transaction.
Except with the consent, (w ritten to be safe) of the depositor, the bank
has no right to charge back to the person depositing the same, a check
found not good at close of the business day.
Reconcilements from correspondent banks are of value as bank records
only for a limited time and should be retained for a limited time, their
value ceasing upon the receipt from the correspondent bank of a sub­
sequent reconcilement in which no exceptions are noted of items arising
prior to the execution of form er or prior reconcilements.
A judgm ent filed in a District Court Clerk’s office does not in itself take
priority over a chattel mortgage filed at a later date. The judgm ent does
not become a lien on personal property at all until further procedure is
had and in the event it be not resorted to the question of the right of
the chattel mortgage would not arise.
If an account were attached, unless the w rit of attachment explicitly
read to cover any monies or property coming into the hands of the holder
of the account attached, it would not cover deposits made following the
attachment.

Illlllllllllllllllllllllllllllllllllllllllllll||||||||l|||||||||||||ll||||||||||||||||ll|||||||||||||||||||llllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllll(ll*ll!llllsli|illllli| llllll| ||l|||||illl| lllllllllllll|||||||||||

15
Mr. Maas, of Pierce, gave this ans­
wer :
“Make the bank the consignor, or
have a written order from the ship­
per to send the proceeds to the bank or
have it deposited to the credit of the
bank at the point where the shipment
is disposed of.”
Questions 8 and 9, shown above, re­
quested reason for answers, and the
reasoning of the various contestants
is of interest. In reply to No. 8,
“Are reconcilements from correspond­
ent banks of any value as bank rec­
ords? Should they be retained?” Mr.
Olson of Gordon said, “They should
he retained as proof of settlement and
best evidence of false entries.” Mr.
Peters of Y utan said, “They are valu­
able for a few months or until it is
certain no errors will be discovered.
W e keep ours but see no reason why
they should be kept more than a year."
Mr. Dressier, of Omaha, answering
No. 8, sa id :
“Reconcilements from correspond­
ent banks are valuable records of a
bank and should be retained perm an­
ently, unless the laws of the state
p e r m i t otherwise. Reconcilements
signed by the proper officers of the
bank may be used as evidence in court
of the standing of the accounts be­
tween the banks for the period covered
in the reconcilements. Occasionally
correspondent banks save themselves
from loss by retaining these as a part
of their permanent records.”
Answering the ninth question,
“Does a judgment hied in District
Court Clerk’s office take priority over
a chattel m ortgage hied at a later
date ?” Mr. Dressier said :
“In Nebraska chattels are bound
under judgm ent lien only from the
time they are seized in execution and
hence a chattel mortgage given on
chattels prior to the date of the exe­
cution will be valid.”
Answering the same question, Mr.
Swanson of Aurora, w rote: “Yes, a
judgm ent stands until paid or re­
leased.”
Contestants will, of course, be in­
terested in the answers that the au­
thor of the questions, Mr. Folda,
would give, were he an eligible con­
testant. Stating that there are al­
ways little circumstances surrounding
every legal point and that such ques­
tions are always subject to different
interpretations. Mr. Folda, while not
pretending to set up his answers as
the only correct ones, would answer
them as follow s:
1. No. It is not obligatory.
2. By instructing your customer to
instruct his commission hrm to deposit
proceeds to your credit in some O m a­


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Federal Reserve Bank of St. Louis

ha bank, designated by you. If it is a
case of your bank having a chattel
mortgage on the cattle, and the cus­
tomer shipping without your knowl­
edge, that is another question. In such
a case, although under the law, proper
filing or recording of the chattel m ort­
gage is notice to the world that your
bank has such a lien. The safe, or
better way, is to notify your Omaha
bank or the Commission firm that you
hold such a mortgage, giving such a
description of the stock that same can
be readily identified.

3. No—not if presented before the
date it bears.
4. If future advances, or “after ac­
quired indebtedness” are contemplated
at the time of making the mortgage,
then draw up notes for the amounts
contemplated and include these in the
amount of the mortgage. Then these
future or additional notes can be used
as required.
5. No.
6. Covered in answer to No. 4.
However, we do think the words “fu ­
ture advances” included in the mort-

l l / | A N Y N ebraska bankers are
IV 1 getting an intim ate person­
al service from the Peters N a­
tional Bank th at is only possible
where a bank is organized with
th at prim arily in view.
W e can give yon definite help
with those particular problems
of m anagem ent and judgm ent
which now confront N ebraska
bankers.

O fficers
R. C. P E T E R S , Chairm an o f the Board
M. D. C A M E R O N , P resident
J. R. C A IN , J r ., V ice-P resident
W . S. W E S T O N , V ice-P resident
E. 1.. L IN D Q U IS T , Cashier
C. J. C LA A S SE N , V ice-P resident
R. D. M IL L E R , A ssista n t Cashier
E. Z. H O R N B E R G E R , A ssista n t Cashier

Peters National Bank
affiliated w ith
P E T E R S T R U S T C O M PA N Y
Om aha

Central W estern Banker, October, 1928

16
gage is or would be notice that the
amount of indebtedness is or might
be more than the amount stated in the
m ortgage and place others on their
guard.
7. Yes, if charged back on same
day as received for credit.
8. Yes, certainly are. Naturally the
latest reconcilement when received
covers all previous ones. But examin­
ers or auditors should have access to
all reconcilements received since last
audit at least.
9. Judgm ents on real estate within
the county take effect on the day on
which judgm ent is rendered. All other

lands, as well as goods and chattels public cannot expect banking service
shall be bound from the time they or any other service at less than cost.
shall be seized in execution. See Sec. It is a m atter of record that generally
8986 Nebraska.
speaking, bank stock is not earning to­
10.
No. The attachment covers day in proportion to telephone stock
only such funds as are attached.
and other public service stock. It is
just as necessary to the life of a bank
that the stockholders receive a divi­
DISPLAYING OUR WARES
dend as it is for the farm er to m arket
( C o n t i n u e d f r o m P a g e 9)
a good crop at a fair price.
that the bank stock of the local bank
Bank Consolidation
should have the same earning power?
The solution of bank problems in
Stockholders in banks or stockholders the smaller towns is indicated by the
in the telephone company have the many consolidations reported by the
same right to expect dividends on bank examiners in the field. Two
their investment. Most certainly the small banks existing in a town may, by

Individual A tten tion
In Every Department
Individual attention
in every department
of banking—for every
correspondent—is the
standard of this bank

CONTINENTAL
NATIONAL BANK
& TRUST COMPANY
O F C H IC A G O

Central W estern Banker, October, 1928

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

consolidating their business and re­
ducing operating costs, serve that
community with a stronger and better
bank and by so doing, improve their
earnings. Good roads and the auto­
mobile have developed each town
separately as a competitor with their
neighboring towns. Thus a town with
one good bank is a competitor of the
banker in the neighboring town. Ac­
cordingly, these many consolidations
are helping the stockholders in these
banks and placing the bank in a better
and stronger position to pay divi­
dends.

Outstanding Bank Features
Concluding our remarks, Nebraska
bankers are making progress in dis­
playing their wares. W e m ust not
overlook our outstanding position in
the following items:
1. Nebraska has exceptional bank­
ing laws.
2. The integrity and solidity of the
board of directors who check the notes
and deposits and are responsible for
the policy of the bank.
3. The standard banking books and
records used in the bank.
4. The examiners call in the direc­
tors when examining the bank.
5. The splendid reserve position of
the Nebraska banks.
6. Banks consolidations and elim­
ination of unnecessary overhead ex­
pense increases earnings for the stock­
holders.

Will Loan Without Collateral
All eyes in the banking world have
been focused on The National City
Bank of New York following the re­
cent announcement by President
Charles E. Mitchell of the establish­
ment by that institution of a personal
loan departm ent to make personal
loans without collateral to salaried
men and women in amounts ranging
from $50 to $1,000 at a discount of
6 per cent.
The development partook of the
spectacular, coming as it did at a time
when attention was directed toward

17
the subject of finding a solution for
the problem of small loans generally.
The fact that Am erica’s largest finan­
cial institution has entered a field
hitherto untouched by large commer­
cial banks also contributed to make
the occasion notable. The response of
the public was immediate and sympa­
thetic, to judge by reports of officials
of The National City Bank of New
York in charge of the new facilities
which at the outset will be centralized
in the bank’s branch at 42nd Street
and Madison Avenue, later to be ex­
tended to the rem ainder of the 24
branches in G reater New York.
From borrowers, who qualify as
depositors or prospective depositors
in the compound interest departm ent,
the bank will require the signatures
of two responsible co-makers on the
note. The 6 per cent discount will
constitute the only charge to the bor­
rower, no service or investigation fee
or charge of any kind being imposed
in connection with the application for
a loan or its arrangement. One year
will be allowed for the repayment of
a loan. To place the borrower in a
position to meet his obligation when
due, the bank provides that deposits
be made weekly, semi-monthly or
monthly, in a compound interest ac­
count, in order to accumulate the re­
quired amount. These deposits will
be made regularly similar to deposits
in a Christmas Club account and in­
terest will be paid on these deposits
at the regular rate obtaining in the
bank’s compound interest departm ent
— 3 per cent per annum compounded
monthly.
A typical example of the manner
in which the personal loan plan ope­
rates is as follow s: On a loan of
$108, the bank’s discount of 6 per
cent amounts to $6.48, leaving $101.52
in cash. A deposit of $9 a month for
12 months in a compound interest ac­
count amounts to $108, sufficient to
pay off the loan. Interest at the an­
nual rate of 3 per cent compounded
monthly on the $9 monthly deposits
amounts to about $1.48 provided all
deposits are made promptly. This
interest accumulates and may be used
either to reduce the amount required
for the final deposit or to start build­
ing up a cash reserve or investment
fund.
A man of genius is inexhaustible
only in proportion as he is always
renourishing his genius.—Lytton.

EXPERIENCE
FIDELITY
PERMANENCE
IN CONTINUOUS EXISTENCE
SINCE 1891

PACKERS
NATIONAL BANK
Affiliation

PACKERS NATIONAL
COMPANY
INVESTMENT BONDS

SOUTH

D

OMAHA

National Bank
.Trust Company

E

O M A H A
‘A n Unbroken Record o f Seventy Years
is a Guarantee o f Safe and
Satisfactory Service”
OF F I C E RS :
President of the Board
R. P. M o r s m a n , President
Y a t e s , Vice-President
R. R. R a in e y , Cashier
M c C l u r e , Vice-President
H . E . R ogers , Assistant Cashier
M u r p h y , Vice-President
E . E . L a n d s t r o m , Assistant Cashier
B r i n k m a n , Ass’t V.-President
A. L . V ic k e r y , Assistant Cashier
H e n d r ic k s , Ass’t Vice-President V . B . C a ld w e l l , Assistant Cashier
M . T . B a rlo w ,

G
J.
T
C.
p ’

H.
C.
F.
F.
B.

NATIONAL BANK OF COMMERCE
L IN C O L N ,

M.

Conversation is the vent of char­
acter as well as of thought.—E m er­
son.


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Federal Reserve Bank of St. Louis

CARL
C a p it a l

W E IL V ic e-P re sid en t
BY RO N DUNN, C ash ier
$300,000.00

NEBRASKA

W E IL ,

S u r p lu s

P resid en t
E R N E S T C. F O L S O M , V i c e - P r e s i d e n t
B. G. C L A R K , A s s ’t C a s h i e r

$100,000

U n d iv id e d

P ro fits

$100,000

Central W estern Banker, October, 1928

18

rrtVfWj^1-

ev e r\b u Go or
^o u contribute to the
Basic Industries
Underlying*
F ix e d Trust Shares

A

thles

|!Hh

W k?

Fixed T rust Shares

c ^ s l>

represent a partici­
pating interest in
the common stocks
of the following
companies:
P e n n s y lv a n ia R .R .
L o u is v ille 8C N a s h .
N e w Y o r k C e n tr a l
I ll in o i s C e n tr a l
U n i o n P a c ific
S o u t h e r n P a c ific
S o u t h e r n R a ilw a y
N o r t h e r n P a c ific
S ta n d . O il o f N . J .
S ta n d . O il o f N . Y .
S ta n d . O il o f I n d .
S t a n d . O il o f C a l.
V a c u u m O il C o .
A m e r. T e l. & T e l.
P u llm a n
G e n e r a l E le c.
W e s t. U n io n
W e s t in g h o u s e
U . S . S te e l
N a t ’l B is c u it
A m e r. T o b a c c o
I n g e r s o ll - R a n d
I n t . H a r v e s te r
O tis E le v a to r
du Pont
T i m k e n R o ll.
A m e r. R a d ia to r
U n ite d Sh o e
W o o lw o r th
A m e ric a n C a n

HETHER you ride on a train, dine at a hotel, drive a motor car, or . phone a friend, you are constantly using the facilities or products of
W
some one or more of the thirty great industries listed in the accompanying list
k j

Every industry or trade, every social or economic activity throughout the
length and breadth of America, is in the same way dependent upon these great
companies for equipment, materials, or services.
So long as America continues to do business, these thirty companies must
prosper. A combined investment in their stocks enjoys a high degree of safety
and stability of principal.

FIXED TRUST SHARES

offer such an investment, but in a new way, which
protects the investor against fluctuating earning power. The Cash Reserve Fund
builds up a strong bulwark against periods of depression, so that holders of these
Shares receive a steady, dependable income year after year The income is
permanently derived from these thirty companies, since no substitutions of
stocks of lesser merit are possible. And the convenient denominations and
bearer coupon form of these Certificates render them attractive investments
to hold in your safe deposit box.
Send for descriptive booklet, “A Fixed Investment in America’s Prosperity”
a r , o T i x e d T r u s t S h a r e s a r e b e in g - d i s t r i b u t e d b y b a n k s
an d in v e stm e n t h o u ses th r o u g h o u t th e c o u n try .
F u ll
d e ta ils w ill be s u p p lie d u p o n r e q u e s t o u t l i n i n g in fu ll
d ealers^
a ttr ib u ti o n for b an k s and in v estm en t

PHILLIPS & COMPANY
In v e s tm e n t

2 0 1 -2 0 5

Central W estern Banker, October, 1928

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Federal Reserve Bank of St. Louis

S e cu ritie s

U n ion .Nat’l B a n k B ld g ., F r e m o n t, N ebr.

19

Bright Outlook Seen For
Utilities Business
Survey made by prominent bond house shows twenty-six billions
already invested with much room for wide expansion.
“The field for future development
\ \ T 1TH a total of almost $26,000,- per cent of the industry, are paying in the electric power and light indus­
** 000,000 invested in the public dividends regularly.
try is so great that capital investment
utility business of the nation, exclusive
These payments are being made on is expected to increase by one-third
of steam railroads, and conditions re­ all of the first preferred stocks and in
ported stable, holders of utilities may no case was it reported that there were and gross receipts by more than onelook forw ard to greater expansion, ac­ any unpaid accumulated back divi­ half during the next five years alone.
The principal bases for these predic­
cording to the results of a survey just
dends. In 14 cases where dividends
completed by Bonbright & Company,
had been deferred, they subsequently tions a r e :
“More than one-third of the popula­
Inc., of New York. The most im port­
were paid off in stock or cash. In the
tion of the U nited States still lives in
ant item in this total is the combined
remaining cases—156 in number the
electric light and power and gas indus­
unwired homes.
tries investment, which amounts to ap­ preferred stocks had unbroken rec­
“More than half of the homes wired
ords. Many other interesting points
proxim ately $12,500,000,000.
for electricity are still
The next largest in­
without any domestic
............................. .... ....... .............. ........................... ...... .........
... .................................... ...............•................... .............................
dividual group listed is
electric appliance ex­
that of the electric rail­
cept the flatiron. The
ways industry, in which
average home today
the holdings are $6,consumes only 400 kilo­
“I t is estimated that during the five years, 1928 to 1932 in­
000,000,000. There is
w att hours a y e a r; it
clusive, the capital invested in the electric power and light business
more than $3,800,000,would need from ten
will increase by $3,000,000.00. In connection w ith this phase of
000 in telephone and
to twenty times as
the industry’s grozvth, it should be borne in mind that the electric
telephone c o m p a n ie s
much electricity if com­
utility
industry
requires
a
larger
investment
per
dollar
o
f
reve­
and, it is estimated,
pletely equipped with
nue than most other businesses— about five dollars of investment
more than $3,500,000,electric servants.
to every one dollar of annual revenue. A successful merchant
000 in w ater facilities.
“More than 90 per
completely ‘turns over’ his stock several times a year. A suc­
In the compiliation of
cent of the farm s in the
cessful manufacturing concern will usually ‘turn capital over at
these figures, it was an­
country are not yet be­
least once a year. A public utility has a ‘turnover’ only once m
nounced, care has been
ing served by the
exercised to keep dupli­
several years.”
power and light com­
cations at a minimum,
panies.
inasmuch as many util­
..................................................................................................
“Only half of our re­
ity companies conduct
quirements for power in industry is
in
connection
with
public
utilities
were
more than one class of business.
supplied by the power and light com­
brought out by the survey.
Mentioned for Stability
“Each year since its inception in panies.
1882 the revenues of the electric
Electric power and light companies
Small Percent Electrified
are especially mentioned for their sta­ power and light industry have shown
“O
f our total railroad mileage only
bility, the bankers pointing out that an increase over those of the preced­ about one per cent is electrified.
the Electrical W orld reported it was ing year,” says the report. “Gross
“The lighting of the country’s great
unable to find a single instance of de­ earnings of all the electric power and network of highways and of the rapid­
fault among the obligations of compa­ light companies in the country in 1902 ly increasing number of airways has
nies engaged solely in this business. aggregated approxim ately $85,700,only just begun.
Furtherm ore, it was shown, an analy­ 000. Twenty-five years later they
“The advent of radio broadcasting
amounted
to
more
than
20
times
as
sis of the dividend records of virtual­
and of the radio outfit supplied with
much.
ly every electric light and power com­
“The power and light companies electricity from the lamp socket has
pany with gross earnings of $1,500,had
230,000 employees and 21,694,100 opened up a new field for consump­
000 a year and upward, the combined
tion of current.
capitalization of which represents 90 customers on January 1, 1928.
Central W estern Banker, October, 1928


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Federal Reserve Bank of St. Louis

20
‘ It is estimated that, during the five
years 1928 to 1932 inclusive, the capi­
tal invested in the electric power and
light business will increase by $3,000,000,000. In connection with this
phase of the industry’s growth, it
should be borne in mind that the elec­
tric utility industry requires a larger
investment per dollar of revenue than
most other businesses—about five dol­
lars of investment to every one dollar
of annual revenue. A successful m er­
chant completely ‘turns over’ his stock
several times a year. A successful
m anufacturing concern will usually
‘turn capital over’ at least once a year.
A public utility has a ‘turnover’ only
once in several years.”

Seeks Verification Law
A law requiring bank examiners to
verify a part of the signatures of
notes, every time they make a bank
examination, will be asked of the N e­
braska legislature when it meets in
January, Clarence B. Bliss, secretary
of the departm ent of trade, commerce
and banking has announced.
The purpose of the law is to make
such verification a m atter of routine
procedure, so that bank customers
would not become alarmed at thoughts
of a bank’s weakness, if asked to veri­
fy the signatures to notes. The recent
failure of the State Bank of Beemer,
due in part, at least, because of forg­
ed signatures to notes, led Mr. Bliss

Make sure
of your bonds
W hether you buy bonds for your
institutional Bond Account, or wish to
supply such investments to your deposi­
tors, you will want to be sure first of all
that ihey are good bonds. New bond
issues are underwritten by The National
City Company only after an analysis of
all the essential facts underlying the
security. Our investment offerings are
backed by 115 years of financial ex­
perience.
Our special Bankers’ List contains
offerings suitable for widely varying
needs. Ask for it.

T he N ation al City C om pany
National City B ank Building, New York
Offices in more than 50 leading cities throughout the world

BONDS

'

SHORT

TERM

NOTES

*

to reach his decision.
A nother proposal, advanced to help
the state’s guaranty fund, which has
large liabilities because of the many
state bank failures, is that the fund
be relieved of responsibility of paying
deposits where losses have occurred
through frauds or forgeries. If the
guaranty fund only had to make good
losses that resulted from bad banking,
or adverse economic conditions, it is
said, it would not be facing a huge de­
ficit.

F. A. A. Elects Officers
C. H. W etterau of the American
National Bank, Nashville, Tennessee,
is the new president of the Financial
A dvertisers’ Association. H e was
elected at the 13th annual convention
of the Association held in Utica.
O ther officers elected were : F irst vicepresident, ^ A. E. Bryson, Halsey,
S tuart & Company, Chicago; Second
vice-president, F. R. Kerman, Bank
of Italy, San Francisco; T hird vicepresident, C. H. McMahon, First N a­
tional Bank, D e tro it; treasurer E. H.
Hintz, ^ People’s T rust & Savings
Bank, Chicago.
The board of Directors for the
coming year consist o f: Clinton F
Berry, Union T rust Co., D etroit; C.
E. Bourne, Royal Bank of Canada,
M ontreal; W . E. Brockman, M inne­
sota Loan & T rust Co., M inneapolis;
George Dock, Wm. R. Compton & Co.
New Y ork; Chas Eastm an, Taylor
E w art & Co., Chicago; F rank Fuch,
F irst National Bank, St. Louis; H. G.’
Hodapp, Nationad City Co., New
York, N. Y .; Robert, J. Izant, Centran National Bank, Cleveland; H.
Ennis Jones, Franklin T rust Co.,
Philadelphia; H. A. Lyon, F irst N a­
tion Bank, B oston; A. Douglas Oliver
Provident T rust Co., Philadelphia;
Alva Maxwell, Citizens & Southern
National, A tlanta; H. W . Mitchell
Illinois M erchants T rust Co., Cleve­
land , and Fred M. Staker, Commerce
T rust Co., Kansas City.

Disappointing
Yes,” said the old man, “I have
had some terrible disappointments,
but none stand out over the years like
one that came to me when I was a
boy.”
“Some terrible shock that fixed it­
self indelibly in your memory, I sup­
pose ?”
Exactly, said the old man, “when
I was a boy I crawled under a tent to
see the circus, and I discovered that it
was a revival meeting.”

ACCEPTANCES

Let us be friends, and treat each
other like friends.—Lincoln.
Central W estern Banker, October, 1928


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Federal Reserve Bank of St. Louis

21
NEBRASKA BANKS
SHOW GAINS
Gains in strength by banks in N e­
braska outside of Omaha are revealed
in the statem ents of their condition,
made in October in response to the
call from the comptroller of the cur­
rency. Some of these are announced
as follow s:
Lincoln National Bank and T rust
Co., L incoln: Loans and discounts,
$1,111,844; government securities
owned, $350,100; reserve with Feder­
al Reserve bank, $220,750; cash items,
$687,275; capital stock, $200,000; sur­
plus, $40,000; undivided profits, $37,198; due to banks, $373,355; demand
deposits, $2,041,143; time deposits,
$390,601.
F irst National Bank of Lincoln:
Loans and discounts, $8,080,221 ;
government securities owned, $614,191; bonds, stock and securities, $1,557,274; banking house, $475,000; re­
serve with Federal Reserve bank,
$821,026; cash items, $2,875,903; cap­
ital stock, $800,000; surplus, $250,000; undivided profits, $63,666; due
to banks, $3,806,430; demand de­
posits, $6,931,699; time deposits, $2,542,888; U nited States deposits,$103,727.
Central National Bank of Lincoln:
Loans and discounts, $1,990,904;
government securities owned, $511,776; other securities owned, $252,607;
reserve with federal reserve bank,
$261,682; cash items, $1,200,774;
capital stock, $200,000; surplus,
$100,000; undivided profits, $37,721 ;
due to banks, $1,421,887; demand de­
posits, $2,091,154; time deposits,
$295,274.
National Bank of Commerce, Lin­
coln: Loans and discounts, $3,713,666; government securities owned,
$330,409; banking house, $262,000;
reserve with Federal Reserve bank,
$403,334; cash items, $1,265,668;
capital stock, $300,000; surplus, $100,000; undivided profits, $86,532; due
to banks, $3,325,487; demand deposits,
$1,747,493; time deposits, $342,290.
First National Bank, H astings;
Loans and discounts, $1,898,958;
government securities owned, $159,519; banking house, $113,651; reserve
with Federal Reserve bank, $143,489; cash and due from banks, $264,342; capital stock, $200,000; surplus,
$100,000; undivided profits, $22,310;
due to banks, $240,925 ; demand de­
posits, $1,574,279; time deposits,
$723,051.
Howells State B an k : Loans and
discounts, $803,862; bonds and other
securities, $203,000; call and com­
mercial loans, $174,300; due from
banks and cash items, $170,024; capi­
tal stock, $40,000; surplus, $40,000;
undivided profits, $13,771; demand


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Federal Reserve Bank of St. Louis

deposits, $287,958; time deposits,
$958,003; savings deposits, $19,548.
M erchants National Bank, N ebras­
ka City: Loans and discounts, $180,601; government securities owned,
$262,588; reserve with Federal Re­
serve bank, $37,191; cash and due
from banks, $203,894; capital stoik,
$50,000; surplus, $40,000; undivided
profits, $28,282; due to banks, $47,378; demand deposits, $416,640; time
deposits, $120,796.
F irst National Bank, Grand Island:
Loans and discounts, $2,655,943;
government securities owned, $91,103;
other securities, $477,427; banking
house, $169,500; reserve with Federal
Reserve bank, $162,569; capital stock,

$100,000; surplus, $250,000; undivid­
ed profits, $8,398; due to banks,
$574,536; demand deposits, $1,170,835; time deposits, $1,716,160.
Beatrice National bank, Beatrice:
Loans and discounts, $1,085,581; U.
S. bonds, $100,000; bank banking,
$20,000; bonds and w arrants, $27,152; cash, liberty bonds, etc., $1,209,758; capital, surplus and profits,
$230,383; deposits, $2,118,107.
Great art is nothing else than the
type of strong and noble life.—Ruskin.
No boom lasts forever, not even a
cattle boom.

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

W e c a n s u p p ly y o u r n e e d s in a n y m a t u r it y of th ir ty
d a y s o r lo n g er a t r a te s fro m 4% % to 7%.
P lease send fo r our lists

CLARKE, LEWIS & CO.
318 SOUTH NINETEENTH STREET
OMAHA

Central W estern Banker, October, 1928

22

The Fixed Type of
Investment Trust
By C e d r ic H. S m i t h ,
President Sm ith, B urris & Co., Chicago
The discussion on this page is
a part o f an address delivered by
Air. Sm ith at the recent Invest­
ment Trust Conference held at
the State House in Indianapolis.
The meeting was sponsored by
the Indiana Bankers Association
and conducted by the Indiana
Securities Commission.
iiiiiiiiiiiiiiiiiiiiiiimiiiiiiiiiiiiiiiiiimmiimiiiiiimiiiiiiiiiiiiiiiiiiimMiiiiiiiiiiiiiiiiiiiiiiimiiiiiiiiiiiiiimiiiimii

'T 'ld E R E are three m ajor types of InA vestment T rusts now being offered
on the American m arket— (1) The
F ixed type, sometimes referred to as
the rigid, static or non-discretionary
type; (2) the Sem i-Fixed type, and
(3) the Discretionary type, sometimes
referred to as the trading or manage­
ment type.

Three Major Types
It may be appropriate right at the
outset to distinguish briefly between
the three types. In the fixed type a
certain definite group of stocks is se­
lected and deposited with a bank tru s­
tee. This group of stocks is com­
monly termed a unit. Against each
unit the trustee issues 1,000 certifi­

cates of beneficial interest commonly
known as Trust Shares or Trustee
Shares. In the fixed type of trust the
same group of stocks is always de­
posited. No charge may be made in
the list of stocks at the time of deposit
nor are any substitutions permitted in
the stocks subsequent to the deposit.
W hatever earnings on the underlying
stocks are received by the trustee are
passed along pro rata to the holders
of the trust shares. The cost of the
trust shares to the public represents
the day to day price of the underlyingstocks plus accrued dividends to date
plus a service fee. The service fee
covers the cost of distribution and
profit to the sponsors.
The semi-fixed type of trust is very
similar in make-up to the fixed type,
except that under certain specified
conditions the sponsors of the trust
are perm itted to make substitution in
the list of underlying stocks.
The discretionary type is of entirely
different form. Roughly speaking, a
discretionary trust is a corporation
whose assets are invested in securi­
ties rather than in plants and machin­

_*111111111111111111m 11111111111111111111111111111111111111111111111111111111111 h11111111111111111111..... m um m ...... ..............................................................................................min min in min m iiiinn iiiniin niiiiiiiiiiiiiiiiiin ..... in n umi n>

You can please us by getting in touch with this
institution— not only when you have funds avail­
able for investm ent— but w henever you w ish to
discuss any investm ent problem— by m ail—or in
person— w ithout any obligation.

ery. Its profifit is made from the in­
come derived from its portfolio of se­
curities plus whatever profits can be
secured through buying and selling
securities.
In the discretionary trust manage­
ment is a prime factor. Its success or
its failure depends upon the skill and
the experience of its management. In
the fixed trust, management plays no
part whatsoever. While the fixed
trust does not benefit in any way from
the trading of securities, it likewise is
not open to the danger of losses from
trading. In the semi-fixed trust, the
management factor enters in varying
degrees, depending upon the terms of
the T rust Indenture.
W e are concerned here with a fixed
type of trust and I shall, therefore, not
attem pt to draw any conclusion or
make any inferences as to which of
the three types is best suited for the
average investor.
The discretionary trust is so en­
tirely different from the fixed tru st in
its make-up and mode of operation
that it would lie difficult to make a
comparison any more than one could
make a comparison as to which were
best, a railroad bond or a utility bond.
The principles upon which a discre­
tionary trust is organized are th o r­
oughly sound, but the success of this
type strongly hinges on both the hon-

The First
National Bank

OF LINCOLN, NEBRASKA
E s ta b lis h e d

1871

O F F IC E R S

R

u fu s

E .

L

e e

&

C

o m pa n y

Investm ent Bankers
204-210 City National Bank Building

Omaha
'iiitiiiiiuiiitiiiiiiuiiMUiiiiiiiiiiiiiiiiiuitiuiuiMiHiuiiiiiiiiiiiiiiiiiiniiiuMiiniiiiiiiuiiiiiiiiiiiiiiiiiinniiiiuiuiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiuiiiiiiiiiiniiiiitiiimiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiitniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii. -

Central W estern Banker, October, 1928

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Federal Reserve Bank of St. Louis

S. H . B U R N H A M , C h . o f B o a r d .
H . S. F R E E M A N , P r e s i d e n t .
P. R. E A S T E R D A Y , V ic e - P r e s .
W . B. R Y O N S , V i c e - P r e s i d e n t .
S T A N L E Y MALY, V ice-P res.
J O E L. B U R N H A M , V i c e - P r e s .
L E O J. S C H M I T T E L , J r. V ic e - P r e s .
B. O. C A M P B E L L , J r . V i c e - P r e s .
E. H . M U L L O W N E Y , C a s h i e r
H O W A R D F R E E M A N , A s s ’t C a s h i e r .
F R E D D. S T O N E , M g r . S e r v i c e D e p t .

CAPITAL/ & S U R P L U S
$ 1 ,0 5 0 ,0 0 0 .0 0
A S S E T S O V E R $ 1 4 ,0 0 0 ,0 0 0 .0 0

23
esty, ability and experience of its m an­
agement.
The fixed type of trust is based on
an entirely different theory, eliminates
the management factor entirely, and

for life insurance, they know, with an
amazing degree of accuracy, how
much of each dollar will be used for
sales expense, how much for opera­
tion, and how much for the payment of
claims. Out of 1,000 individuals in­
sured today, they can forecast the
number and amount of claims they
will be called upon to pay next year,
the year after, ten years hence, thirty
years hence, and so on. In making
these calculations they give considera­
tion to and make provision for unusual
conditions such as catastrophies,
plagues and epidemics, setting up re­
serves sufficient in size to cover such
unforseen disasters.
The very same Insurance Factors

ever, groups of stocks selected by ruleof-thumb methods, without investment
intelligence, still retain the same in­
herent characteristics, and make sta­
tistical showings of a far more favor­
able nature than the casual student of
the subject would think possible.

The Insurance Factor
In the group holding of common
stocks there is an insurance factor at
work, not unlike the factor of safety
which operates in th,e underw riting of
life, fire and casualty risks. Insurance
companies reduce this factor to a
mathematical equation through their
experience charts and m ortality tables.
At the time of receiving your premium

pEW

single banks or institutions can

afford to employ a real financial ex­
pert, yet these experts are at your dispos­
al through the financial services to which
C e d r ic H. S m i t h

when properly set up at the beginning,
is equally sound.

our house subscribes.

Founded on Known Characteristics
The fixed type of investment trust
is predicated on the fact that a wellselected group of common stocks, p u r­
chased as a whole and held as a whole
over a period of time, provides very
definite inherent characteristics rela­
tive to safety of principal, certainty of
income, and appreciation of principal.
Just as a bond has certain inherent
characteristics which render it a desir­
able channel for investment funds, so
a group holding of common stocks
has certain characteristics, which can
be classified and definitely ascertained
through close statistical study covering
long periods of time.
The history of common stocks of
American corporations indicates that
these characteristics are ever present,
regardless of the stocks selected, and
regardless of the period in which they
were purchased, held or sold; how­
ever, it must be pointed out that a
variation in these factors causes a
variation in the results. Stocks of
basic industries make better showings
than stocks of non-essential industries.
Stocks of corporations managed by the
highest type of brain power result in
a more favorable showing than those
managed by man-power of lesser ex­
perience. Notwithstanding this, how­


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Federal Reserve Bank of St. Louis

W e place at your disposal the opinions of
the best inform ed financial experts.

Consult them through us.

Ask for special reports on any corporation
or partnership.

SMITH, LANDERYOU & CO.
640 F irst National Bank Building

OMAHA, NEBRASKA
T e le p h o n e JA c k so n 5 0 6 5

Central W estern Banker, October, 1928

24
apply to a group holding of common
stocks, and the outcome of such a
holding over a long period of time can,
through statistical study, be quite ac­
curately determined.
Studies of
group holdings of common stocks of
American corporations, covering a
period of the past 60 years, have been
made independently by many leading
economists, and the sum and substance
of their various conclusions have been
the same to a surprising degree.

Three Characteristics
Probably these conclusions can best
be summed up by quoting Professor
Irving Fisher of Yale University.
Back in 1912— 16 years ago— Irving

Fisher drew three fundamental con­
clusions as to the characteristics of a
group holding of common stocks, as
follow s:
1. N o hazard o f principal except
the T IM E H A Z A R D .
2. N o hazard o f income, except the
V A R I A T I O N o f return.
3. A higher return than bonds.
These same conclusions have been
reached by a score of other prominent
economists, including Kenneth S. Van
Strum, Edgar Lawrence Smith, W al­
ter Lagerquist, John Moody, Grover
Huebner, J. Pease Norton, Paul Tom ­
linson, and many others. Their stud­
ies cover all classes and types of com­
mon stocks, from the speculative to

the pure investment stock. They cover
the uphill and downhill swings of busi­
ness— the periods of prosperity and
the periods of depression. They cover
the swings of industrial expansion and
the years of acute business and finan­
cial panics. O ut of these studies, they
have1 formulated these three funda­
mental characteristics of a group hold­
ing of common stocks. I will repeat
them again, because it is upon these
principals that the fixed type of in­
vestment trust is founded. I. No
hazard of principal, except the time
hazard. 2. No hazard of income, ex­
cept the variation of return. 3. A
higher return than bonds.

LAST MINUTE NEWS OF
BANKS AND BANKERS
(Continued from Page 3)
SHORT

TERM

INVESTMENTS

FOR

BANKS

U R short-, term
obligations have-, been p u r­
chased by more

6,000

banks in the United States.
\ * ;

G eneral M otors
A cceptance Corporation
Executive Office - 2.50 WEST 5 7 ™ ST. / New York City
Capital , Surplus & Undivided
Profits . $50,616,000

Central W estern Banker, October, 1928

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Federal Reserve Bank of St. Louis

cident to security trading under one
roof. It is estimated that $10,000,000 a year could be saved in the tran s­
fer and recording of securities.
T N A T E S T CASE as to whether
the Central National Bank of Top­
eka, Kansas, was entitled to have the
stock of its stockholders taxed at the
intangible rate of twenty-five cents on
$100 instead of at the rate of $3.23
per hundred imposed on tangible pro­
perty, the supreme court refused a
review to Shawnee County.
TN IR EC T O R S of the Municipal
Bank & T rust Company and the
Seventh National Bank of New York
have approved the plans for consoli­
dation of the two institutions, thus
creating a bank with resources in ex­
cess of $75,000,000. with twenty o f­
fices in New Y ork City.
/\ PPL1 C A T IO N for a national
^
Charter to operate in New York
City has recently been made by S. W .
Straus & Company. It is rum ored that
the organization of banks in other
large cities is also being considered
by the same company. The Straus N a­
tional Bank & T rust Company was
recently opened in Chicago with a
capital of $1,000,000.
\ \ 7 IT H C O M B IN E D resources in
* * excess of $20,000,000, and with
capital, surplus and undivided profits
of more than $5,000,000, the Broad
Street National Bank of N orth Phila­
delphia, Queen Lane National Bank,
and the Oak Lane T rust Company recentlv consolidated under the name of
the Bank of Philadelphia and T ru st
Company. The bank operates ten of­
fices.

25

Insurance

Snapshots that show the disaster
following the September 13th
tornado in northeastern Nebras­
ka. Above, left, all buildings de­
molished on the Larson home
near Homer, Nebraska. A pan
of meat, left frying on a gaso­
line stove before the storm, was
found still frying after the tor­
nado. Above, center, the Art­
hur Harris dwelling near Win­
nebago, Nebraska. Above, right,
every building destroyed on this
Winnebago farm, leaving the oats piled in an eight foot hea p. Below, left, the country schoolhouse near Homer, where
the teacher, Helen Rooney, was killed. The piano was fou nd a quarter of a mile azvay. Right, what was left of a fill­
ing station near Winnebago. Photos by McManus-Webb-Bennett Co., Sioux City local agents.

Tornados and Tornado Insurance
Interesting sidelights on the recent Nebraska twister that
left death and destruction in its wake
By J ack W
W H A T is a tornado like?
A. A tornado is like something
one doesn’t w ant to be n e a r! In other
words, it isn’t like anything one en­
joys.
Imagine a farm er near Hom er, N e­
braska, hearing some telephone line­
men yelling that a tornado was com­
ing, running to the house to get his
wlife and child, hurrying them all
down into a cave, followed by the
telephone men until twenty-two hu­
mans were in that one cave, listening
to a roar and din overhead, then a
quiet, and upon looking out of the
door to their form er lovely farm home,
beautiful stock, shapely trees and
splendid gardens, found every building
gone, trees broken, stock killed, gar­
dens plowed up and years of effort
and struggle lost— just imagine it and
one will get only a very minute idea
of the haste and destructiveness of a
tornado, at least as it appeared in
northeast Nebraska September 13,
1928.


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Federal Reserve Bank of St. Louis

alterben

According to the weather bureau a
tornado is a wind twisting counter
clockwise so rapidly as to create a
vertical velocity sufficient to carry up
pieces of lumber and other objects to
a considerable height. The length of a
path is sometimes as much as 300
miles, usually 20 to 40 miles. The
Pender-D akota City, Nebraska storm
was about 5 miles in length. A to r­
nado, as a rule, travels northeastw aid
with a path of 40 to 50 feet up to a
mile, but averages around 1,000 feet.
They usually occur between 3 and 5
in the afternoon. They usually travel
from 25 to 40 miles per hour and there
is a period of about five minutes from
the time the cloud is first observed
until the tornado strikes.

1928, in northeastern Nebraska listed
the destruction as follows:
People dead....................................
7
People injured...............................
53
Families homeless........_...............
122
Individuals homeless..................... 413
Horses killed.................................
737
Cattle killed.......................
126
Hogs killed...................................... 879
Poultry killed............„....................11,600
Dwellings destroyed.....................
43
Dwellings damaged.......................
75
F arm buildings destroyed............ 264
Acres corn destroyed,.................. 5,914
Acreage other crops destroyed.. 8,800

The above list is a pretty good one
to show a prospect for tornado in­
surance as it includes nearly every
type of article. To this should be
Damages Everything
added the many automobiles de­
Q.
W hat is destroyed by a tor­ stroyed. Also the storm destroyed
fine brick buildings about as easy as
nado ?
A. Red Cross workers who went if they were of wood. The fireproof
into the field immediately after the railroad station at Dakota City, Ne­
disastrous tornado of September 13, braska, was demolished as if it were
Central W estern Banker, October, 1928

26
a doll’s house. So one never knows
what will be destroyed.

The Indian Legend
0 . Does a river or valley stop a
tornadof
A. At Sioux City, Iowa, there is a
popular belief that the rivers which
nearly surround the city, the M is­
souri, Big Sioux and Floyd, will al­
ways disintegrate any tornado so it
will not injure the city.
Nothing could be more detrimental
to any community than to spread such
a thought if it were not true, because,
if it were believed by the citizens to
such an extent that they would not
carry sufficient insurance, a real to r­
nado would then demolish the town
without any hope of recovery. If, on
the other hand, the facts show that
the old Indian legend is wrong and if
the citizens properly protect them ­
selves by insurance, then they will
have insurance money coming in to
rebuild homes. There are several
things which point to this legend’s be­
ing untrue.
F irst is that insurance companies
have, out of their piles of statistics,
found that a rate of 40 cents per $100
for three years is a proper charge for
Iowa. If this is carried by a party for
750 years and then he1has a total loss
he will break even. Thus the period
of probability is large. Seven hundred
and fifty years is much longer, nearly
ten times as long as the age of most
cities in Iowa. Thus the experience

ORDER NOW
New F a ll n u m b e r o f th e

American Bank Reporter
DESK EDITION
C o n v en ien t fo r D esk Use a n d to
c a rr y w ith you

Issued Twice a Year
P rin te d on B ib le P a p e r, Size
R e d L e a t h e r Bin d in g'

in.

of any community is far from suffici­
ent and if it has not had a tornado in
seventy-five years it does not mean
it will not have one in the rest of the
750.
As to the river stopping it, observ­
ers point out that it was not the M is­
souri river which disintegrated the
Nebraska storm. Rather, the funnel
began to diffuse about a mile north of
Dakota City, Nebraska, and four miles
from the Missouri.

Crossed River at St. Louis
A third fact is pointed out to show
that tornadoes do cross rivers. The
destructive St. Louis storm of 1927,
coming from the west, demolished
hundreds of buildings in the city, then
continued east across the wide expanse
of the Mississippi river to do more
damage to hundreds of other struc­
tures on the other side. Many other
similar cases can be pointed out with­
in the past two years. The most de­
structive tornado of record, in March,
1925, crossed the Mississippi river
near Murphysboro, Illinois, and killed
695 people.
So the old Indian legend that a river
or valley would save a city from a
tornado is not true.

EVERY M A KE—LARGE OR PO RTA BLE

on

Steurer Publishing Co.
1 4 9 th S t., cor. B e rg e n A ve.

New York City

Central W estern Banker, October, 1928

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( C o n t i n u e d f r o m P a g e 7)

costs, larger gross and net profits, and
greater liquidity with even greater
safety and service.
“The banking business has been
making great progress during the past
few years. The time is ripe for the
application of higher and more defi­
nite standards. No business has
greater responsibility—none has the
right to be more efficiently managed.
By the co-operation of all, the time
element in accomplishing this great
achievement may be minimized. May
I count upon the bankers of Nebraska
to apply themselves to the problem—
practically, constructively, hardheadedly, if you will—but still with vision
and with optimism ?”
Following his address came the
election of state officers of the Ameri-

TYPEWRITERS
AND
A D D IN G MACHINES

P r ic e $ 8 .0 0 d e liv e r e d
P r ic e d B a n k D ire c to ry
th e M a r k e t

NEBRASKA BANKERS HOLD
31ST ANNUAL CONVENTION

How the Ford Engine Jumped
Q. W hat curiosities did the recent N e ­
braska tornado leave?
A. Many peculiar things are left by
some tornadoes. For instance, near
Winnebago, Nebraska, Mr. Larson
saw a tornado coming, ran to the
house, told his wife to hurry down
into the basement with him. She did,
leaving a gasoline stove cooking meat
just above their heads. It might have
exploded any m inute and burned them
alive, yet it did not. The kitchen was
the only room left standing on the
whole farm and after the twister had
gone the family returned to eat their
meat which was still cooking over the
fire.
Many think a building at the foot
of a hill is safe from tornadoes. It
may be out of the way of much ordi­

C o n ta in s a c o m p le te lis t of B a n k s ,
B an k e rs, S av in g s B an k s, T r u s t C o m ­
pa n ie s, In v e s tm e n t, A c c e p ta n c e a n d
D is c o u n t C o r p o r a tio n s , in t h e U n ite d
S t a t e s a n d C a n a d a w i t h n a m e s of
O fficers, C a p ita l, S u r p lu s, U n d iv id e d
Profits, L oans, D eposits, P r in c ip a l
C o rresp o n d en ts,
L ist
of
F o reig n
B a n k s , Etc.
Low est

nary wind, but not so with tornadoes.
The unfortunate case of Helen Roon­
ey, pretty school teacher near Homer,
Nebraska, is an example. H er schoolhouse was at the foot of a high hill,
heavily wooded, yet the tornado came
over the top, smashed the frame build­
ing into thousands of pieces, tossed
the piano over into the cornfield a
half mile away, and took every evi­
dence of book, seat or desk. The
teacher, herself, was found dead some
distance away, terribly crushed.
One of the interesting remains of a
tornado is the way straw is stuck end­
ways into wood. Chickens are usual­
ly bewildered and huddle together,
many with feathers blown away, and
at such times one can easily approach
and pick them up. Veterinarians were
busy picking splinters out of horses in
Nebraska. In one case the branch of
a tree was stuck endwise into solid
concrete. Several men could not pull
it out, but broke off the branch. A
new telephone cable at Homer, N e­
braska, was bent into a most beau­
tiful, symmetrical design.

CORONA

FOUR

S ta n d a rd F o u r B a n k K e y b o a rd
— W id e C a r r ia g e

7 C ol.

“CORONA”

1 0 C ol.

$60

A dding
M achines

$100

F. J. WEISS

GEO. F. PINNE

Central Typewriter Exchange, Inc.

1912 FARNAM ST.

(.Established 1903)

OMAHA, NEBR.

27
Bennett’s $10,000 government insur­
ance policy. Bennett carried no com­
mercial life insurance, as no firm
would insure him because of the dan­
gerous character of his work.
Feeling that an aviator’s inability
to get life insurance was a “gross in
justice,” which was a hardship to
other people as it had been to hei,
Mrs. Bennett convinced a life insur­
ance company that it was its “duty to
m ankind” to blaze the way by selling
life insurance to those engaged in avia­
tion. They engaged her to put the
new plan into operation.
Mrs. B ennett’s first prospect was
Charles H. Colvin, general manager
of the Pioneer Instrum ent Company,
makers of aircraft instruments, who is
an experienced aviator. A fter a 20
minute interview with Mr. Colvin,
Mrs. Bennett sold her first prospect
her first life insurance policy and
emerged trium phantly from Colvin’s
office with a contract for $25,000.
According to the new policy, licen­
sed aviators are entitled to take out
life insurance policies for as much as
$25,000 at a slightly advanced rate
over that for persons not engaged in
flying, while passengers who do not
make more than five flights a year get
the same rate as non-aviators.

The closing address of the conven­
tion was delivered by Dr. O. R.
Sweeney, head of the chemical engi­
neering departm ent of the Iowa State
College at Ames. Dr. Sweeney spoke
on the “Utilization of Agricultural
W astes.” He pointed out that while
agriculture can greatly improve its
position among other in d u stries
through improved methods of m ar­
keting and production, the greatest
possible chance for the bettering of its
condition lies in the utilization of vari­
ous farm wastes. He showed how
chemists are discovering hundreds and
hundreds of m anufactured products
that can be made from such things as
cornstalks, corncobs, oat hulls, etc. His
address was closely followed by all
who attended the meeting.

can Bankers Association, resulting in
the following selections :
Members of the executive council,
W oods Cones, president of the Cones
National Bank of Pierce ; state vicepresident, H arold McLucas, vicepresident of the H arbine Bank of
F airbury; member of the nominating
committee, F rank Boyd, vice-presi­
dent of the Omaha National Bank;
vice-president national bank section,
H. C. Nicholson, vice-president of the
Packers National Bank of O m aha;
vice-president state bank section, E. C.
Davenport, president of the Nebraska
State Bank at Valentine; vice-presi­
dent trust company section, S. C.
W augh, vice-president of the F irst
T ru st Company of Lincoln.
T H U R S D A Y A F T E R N O O N , Oct.
18.—T he final session of the conven­
tion was opened with another excel­
lent group of songs by the Hub-Den
Serenaders, after which the conven­
tion heard a scholarly address on
“Safeguarding Your Bank Against
Excessive T axation,” by Thornton
Cooke, president of the Columbia N a­
tional Bank of Kansas City, and chair­
man of the committee on state tax ­
ation of the American Bankers Asso­
ciation. His address will be found
elsewhere in this issue.

Hero’s Widow Selling Insurance
The widow of Floyd Bennett, the
American aviator, who died of pneu­
monia contracted on a flight against
the doctor’s orders to rescue the B re­
men trans-A tlantic flyers, has entered
the life insurance field to earn a liveli­
hood and on her first day sold a policy
for $25,000.
At her husband’s death Mrs. Ben­
nett faced the problem of how to sup­
port herself. H er only resources were

YOUR OPPORTUNITY
B a n k in g an d L ife In su r a n c e g o h a n d in h a n d .
B o th in s titu tio n s te a ch th e p r in c ip le s a n d a d v a n t­
a g e s o f th r ift.
T h e b a n k e r is in a b e tte r p o sitio n to e d u c a te
th e p u b lic o n th e t h r if t id e a th a n a n y o th e r c itiz e n
in th e c o m m u n ity .
W e a re, th e r e fo r e , a n x io u s to o b ta in a n u m ­
b er o f p r o g r e s siv e b a n k e r a g e n ts in N eb r a sk a a n d
a d jo in in g s ta te s a n d a r e o ffe r in g a n u n u s u a l p arttim e c o n tr a c t w ith lib e r a l c o m m is sio n s a n d sa le s
tr a in in g b y e x p e r ie n c e d in su r a n c e m e n .

G uarantee

F und

L if e

W r ite A g e n c y D e p a r tm e n t fo r D e ta ils .

B u il d in g

18th and D ouglas Sts., O m aha

We Write

Guarantee Fund

O R D IN A R Y L I F E
20 Y E A R A C C U M U L A T IO N
20 Y E A R E N D O W M E N T
E N D O W M E N T A T 65
E N D O W M E N T A T 70
Y EA R LY R EN EW A B LE TERM
T E R M IN S U R A N C E F O R 5, 10, 15,
20, 25 A N D 30 Y E A R S
D O U B L E IN D E M N IT Y
D IS A B IL IT Y B E N E F IT S
W A IV E R O F P R E M IU M
J U V E N IL E IN S U R A N C E

=35=

=35=


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Federal Reserve Bank of St. Louis

=35=

=35=

A ssociation
- OM AHA-

A ssets Exceeding $13,000,000.00
=35=

=3£=

=35=

=35=

=35=

=35:

.35=

=35:

=35=

Central W estern Banker, October, 1928

28

New loading pens for trucks are
being constructed in the yards just
east of the Live Stock Exchange
building. The yards are already equip­
ped with unloading chutes, but up to
the present time have never had any
real facilities for loading purposes.
Trucks are now playing a large
part in the transportation of live stock
to and from the Omaha m arket and
the erection of loading pens is indica­
tive of the co-operation which the
Stock Y ards Company is extending to
present day shippers.
Practically every bank in N ebras­
ka has agreed to be assessed to pay
the reward of 5 thousand dollars o f­
fered for dead bank robbers, it has
been announced by C. A. Smith of
Tilden, president of the Nebraska
Bankers association. The robbers
m ust be shot while in the act of rob­
bing the bank. Notices are to be
posted in the various banks.
From State to National
Nebraska banks which have recent­
ly nationalized are the E xeter Bank,
formerly the E xeter S ta te ; the F irst
National Bank of Prim rose, formerly
the Prim rose State B an k ; and the V al­
ley National Bank of Valley, form er­
ly the Valley State Bank.

Bond Offering
On the bond list of Smith, Landeryou & Company of Omaha, has re­
cently appeared an additional issue of
$1,600,000 American States Public
Service Company F irst Lien S x/ 2 per
cent Gold Bonds, Series “A ,” which
are due May 1, 1948.
These bonds are listed on the Chi­
cago Stock Exchange. The American
States Public Service Company will,
through its subsidiaries, own and m an­
age properties supplying w ater and
artificial gas for domestic and com­
mercial purposes to a portion of the
city of Los Angeles and Sacramento,
and twenty-six additional cities and
suburban communities, also in Cali­
fornia. The bonds as priced at $95.50.

.

N

Nebraska News
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiHiiiiiiiiiiii

Deposits Increase
Bank deposits in Omaha, which have
been steadily gaining during the year,
reached a total of $122,716,416 on
October 3, according to statements
made by all banks, when the comptrol­
ler of the currency called for state­
ments of the condition of the national
banks. This total of deposits showed
no seasonal decline as if often experi­
enced at this time of the year, but on
the contrary, revealed an increase of
$1,342,432 over the total of June 30,
the date of the last bank call.
The deposits also are a gain of $7,753,550 over the total for October 10,
1927.
Loans and deposits by banks follow :
Deposits
L oan s
O m ah a N a t l ..... $ 3 6,9 93,884 $2 0,908.885
F i r s t N a t l ........ 26,71 2,4 81
9,821,476
U. S. N a t l .......... 21,02 2,6 50
8,976,653
Stk. Yds. N atl. 11,259,480
8,358,317
S ta t e B a n k of
3,681,999
O m a h a ............. 7,017,634
Live Stk. N atl.
5,777,566
4,168,198
P a c k e r s Natl,... 4,185,486
3,728,462
P e te r s N a t l .....
2,757,674
968,950
S o u th
O m ah a
S ta t e ..............
1,715,698
1,017,939
Farm ers
and
M e r c h a n ts ....
1,084,470
752,446
B a n k of F lo ren c e .................
574,277
346,570
$1 22 ,7 1 6 ,4 1 6 $6 5,197,072

Routs Bandits
An attem pt to hold up the Bank of
Lynch, Nebraska, failed recently,
when R. H. H arris, president of the
institution, put three bandits to rout.
W hen H arris opened the bank
shortly before eight o’clock he was
confronted by three men, who ordered
him to put up his hands. Instead of
complying, H arris knocked the leader
of the trio down. In the scuffle which
followed H arris sustained a bad cut
on the head and bruises about the face.

New Eppley Hotel

New Bank

Hotel Tallcorn, located in M arshall­
town, Iowa, was recently opened to
the public by the Eppley Hotels Com­
pany, whose headquarters are in O m a­
ha, Nebraska. The new hotel, one of
eleven others owned and operated in
Iowa, Nebraska, South Dakota, Cali­
fornia, and Pennsylvania, was built at
a cost of a half million dollars, is seven
stories high, and has 150 guest rooms.

S. L. Hestbeck, form er cashier of
the Citizens Bank of Ogallala, N e­
braska, and a state bank examiner for
a number of years, reports that he
will open a new bank in Madrid.
A. E. W igginhorn, Jr., of Ashland,
is president, L. C. Churchill of Pali­
sade is vice-president and S. L. H est­
beck is cashier of the institution which
has been chartered as the State Bank

Central W estern Banker, October, 1928

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

111111111111111111111111111111111111111111111111111H111, „ 111,1111*11,

I !I I II II IIIIIIIIIIIIIIIIIIIII||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||

of Madrid, with a capital stock of
$25,000. The three officers named
above are the principal owners.

Refund Taxes
Regardless of whether they protest
paying their 1925, 1926 and 1927 asassessments, all Lancaster county, N e­
braska banks will be refunded the
county tax which the Supreme Court
recently held was illegally levied, ac­
cording to a decision of the county
board of commissioners recently. Each
bank will be required to furnish an in­
demnity bond, however.
During the three years some of the
institutions paid the tax without pro­
test while others claimed that the levy
was illegally made. The Supreme
court upheld the stand that funds
should be assessed as intangible in­
stead of tangible property in a recent
decision. The ruling results in about
a 75 per cent reduction of bank taxes.

To Verify Notes
Clarence G. Bliss, secretary of the
state departm ent of trade and com­
merce, following a conference with
Dan V. Stephens, president of the
Frem ont State Bank and of the First
Nebraska D istrict Clearing House as­
sociation, announced that state bank
examiners will soon begin verification
of notes on file in state banks of N e­
braska.
Exam iners will take 25 notes from
each bank and write the makers, ask­
ing that the signatures and amounts
be verified.
The action grows out of alleged
fraudulent operation of Paul W upper
of Beemer, missing president of the
Beemer State Bank.
Credit for the discovery of W upp er’s alleged operations was given by
Bliss and Stephens to Lyman Soren­
son, state bank examiner with head­
quarters in Frem ont. According to
them, Sorenson became suspicious of
defalcations from the fact that signa­
tures on notes from the Beemer bank
on file at Morse Bluff did not appear
to be those of farm ers as claimed.
Bliss then assigned Sorenson to inspect
the Beemer bank and the shortage
there was revealed.

Sell Bank Stock
F red Pierson and C. L. Pierson, re­
cently sold their stock in the Farm ers
State Bank of Sutherland, Nebraska,

29
to George C. W hite, W alter Coker,
John Goedert and N. E. Trego. Fred
Pierson resigned as president and
Clem Pierson as vice-president and as
directors of the bank.
At a special meeting of the stock
holders, George C. W hite, W alter
Coker, N. E. Trego, John Goedert and
R. A. Scott were chosen as the new
board of directors and the new board
of directors then met and elected
George C. W hite as president; N. E.
Trego as vice-president and R. A.
Scott as cashier, until the second T ues­
day in January, 1929, the regular date
of the annual meeting of the stock
holders.

Banker Retires
J. A. Sire, old resident of DeW itt,
Nebraska, and for years connected
with the Farm ers and M erchants bank
of that place, has disposed of his in­
terest in the institution to H enry Damkroger and H enry Pohlman. Mr. Sire
will retire because of failing health.

New Charter

notes taken from the bank by the
committee of officers and depositors
will lie held, and depositors reim ­
bursed as collections are made upon
the notes.
A total of $52,000 was used to re­
move losses from the bank. O f this
amount 15 thousand dollars was capi­
tal stock, 5 thousand dollars surplus,
and 22 thousand dollars undivided
profits. In addition depositors gave
checks upon their own accounts to the
bank so that it would reopen with ap­
proxim ately 25 per cent of their de­
posits, with the exception of public
accounts and small private accounts
under $50.
The officers of the McLean bank,
who were on the old organization are
now officers of the new organization
and hold a controlling interest in the
stock. J. Norwood, who was cashier,
is now president. F. C. W eaver, who
was assistant cashier, is now cashier.

Attends Nebraska Meeting
Fred A. Cuscaden, Vice-President
of The N orthern T rust company of

Clarence Bliss, secretary of the N e­
braska departm ent of trade and com­
merce recently announced a charter
had been issued to the Plainview State
Bank, Plainview, Pierce county.
The bank will have a capital stock
of $25,000, J. W . Ransom, vice-presi­
dent of the Nebraska State Bank at
Norfolk, is to be president, B. N.
Saunders, cashier, and C. J. Hibben,
vice-president. Jabe B. Gibson and
C. E. Doughty, president and cashier,
respectively of the Nebraska State
Bank at Norfolk, are stockholders in
the new bank.

County MeetingAll banks in the county except two
were represented at the meeting of the
Saline County, Nebraska bankers as­
sociation held recently at the Saline
County Bank, W estern. H. V. Jeli­
nek of W ilber presided as chairman,
and J. W. Sawyer of W estern as sec­
retary. Conditions in the county were
discussed and lunch was served. The
next meeting of the association will
be held at Friend, the bankers of that
town being hosts.

Reopened
The M cLean State Bank of Mc­
Lean, Pierce county, Nebraska, closed
for a few days by the guaranty fund
commission, was enabled to open be­
cause of community pride and loyalty,
according to C. G. Bliss, state secre­
tary of trade and commerce.
Depositors gave their checks for
$30,000, drawing upon their own ac­
counts in the bank, and in return


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Federal Reserve Bank of St. Louis

F red A. C u s c a d e n

Chicago, in attendance at the recent
Nebraska B anker’s Convention was
greeted by a host of friends from the
state which has played a prominent
part in the development of his bank­
ing experience.
Mr. Cuscaden was graduated from
the U niversity of Nebraska Law
School in 1902 and immediately there­
after he entered the employ of the
Union National Bank at Omaha, N e­
braska. W hen the Union National
consolidated with the Commercial
National and the U nited States N a­
tional into the present United States
National Bank, Mr. Cuscaden was
part of the new organization.

In 1905 he left the U nited States
National to organize the Ericson State
Bank of Ericson, Nebraska, and m an­
aged it for several years. In 1912 he
returned to Om aha to accept an a p ­
pointment at National Bank E xam in­
er. In this capacity he spent some
time in A rkansas and Oklahoma, re­
turning to Omaha 1913 where he
served as National Bank Exam iner
for two years.
The M erchants National Bank of
Om aha appointed him Assistant
Cashier in 1915, electing him VicePresident of that institution in April
1919.
In 1920 Mr. Cuscaden was elected
vice-president of The N orthern T rust
company of Chicago. He is just en­
tering his 27th year in banking.

Nebraska’s Banking Progress
Nebraska has made real banking
progress during the past year, accord­
ing to C. J. Claassen, vice-president
of the Peters T rust company of O m a­
ha. He say s:
“It is very gratifying to observe
N ebraska’s banking progress during
the last year. A comparative review
shows that that the O ther Real Estate
items of our Nebraska reporting State
Banks decreased nearly 4 million dol­
lars ; and, in one of our sister states
with a ram pant farm -relief press, in­
creased over 800 thousand dollars
during the period from June 30, 1927
to June 30, 1928, with about equally
good crops in each state. In N ebras­
ka the Bills Payable decreased another
4 million. A year ago, on the June 30
call date, there were barely 100 banks
in our state banking system which
had the required 15% cash reserve.
This June 30th the average reserve
for our State Banking system was
22% and over 35% cash and bonds.
“It seems to me considering these
bold figures that we are on the road
to a fam share of the country’s pros­
perity during the next decade.
“Some of us admire Prem ier M us­
solini and some stand in awe and won­
der if the half of his remarkable re ­
construction in Italy can be true or
if there will be a rude awakening. A
recent report from a traveler this
summer in Italy brings the interest­
ing inform ation that Mussolini has
issued an order requiring all Savings
Banks having deposits of $250.000 or
less to merge with their largest nearhv neighbor. This is a m andatory or­
der and not ontional and examplifies
one method of coping with the dan­
gers of overbanking.”

Sneaks at Indiana Meeting
Cedric H. Smith, of Chicago, mem­
ber of the firm of Smith, Burris and

Central W estern Banker, October, 1928

30

O F F IC E R S
FO RD E. H O V E Y , P resident
JA S. B. O W E N , V ice-Pres.
F. J, E N E R S O N , V ice-Pres.
W. H. D R E S S L E R , Cashier
L. K. M O O R E, A sst, to P res.

OUR B A N K I N G
M A IN

FLOOR

H . C. M IL L E R , Asst. Cash.
C. L. O W E N , Asst. Cash.
H E N R Y A. H O V E Y , Asst. Cash,
T. G. BOGGS, A uditor

ROOM
RIGHT

“ JT IS our constant endeavor to
render a service to our cus­
tomers that will induce them to
recognize us as one of their indis­
pensable correspondents/ 7

Stock Yards National Bank
of
South Omaha

Co., who a few weeks ago, addressed
a num ber of bankers and investment
dealers in Frem ont, Nebraska, de­
livered an address at the Investm ent
T rust conference held at the Indiana
state house recently, which meeting
was sponsored by the Indiana State
Bankers Association and conducted by
the Indiana Securities Commission.
His address has since been put in
phamplet form for distribution by
Phillips and company, investment firm
of Fremont.

Organizing Counties
The Nebraska Bankers’ association,
which is organizing the bankers of the
state by counties, announces the for­
mation of new organizations in Gos­
per, H oward, Thayer and Otoe coun­
ties. Seventy-four counties are noworganized, it is stated. The 19 coun­
ties which have not formed organiza­
tions are: Blaine, Boyd, Brown, G ar­
field, Greeley, Hayes, Hitchcock, Keya
Paha, Loup, Morrill, Nance, Polk,
Rock, Sheridan, Sherman, Stanton,
alley, W ayne, and W heeler. Sherman
and Polk counties each have 10 banks,
while Sheridan has nine, and Boyd
eight.

The secretary-treasurer of the
national farm loan associations of the
eighth district, comprising Nebraska,
Iowa, South Dakota and Wyoming, at
their annual convention in Omaha,
elected Tom Costello of Sioux Falls,
S. Dak., president; A. O. Hauge of
Des Moines, la., vice-president; S. D.
Thornton of Neligh, Neb., second
vice-president; H allyard Kloster, of
Eagle Grove, la., secretary-treasurer.
New members of the executive com­
mittee are: George M orhin, Cedar
Falls, l a . ; J. W . Holindrake, O ak­
land, N e b .; E. R. Geiger, H uron, S.
D a k .; J. H. Rowe, Canton, S. D a k .;
R. D. Thomas, Sundance, Wyo.
The Venango State Bank, which
failed last spring, has been returned
to its owners and has reopened as a
private instiution, after having been
operated by the guaranty fund com­
mission. The bank opens with $30,000 of new capital, and $20,000, of
doubtful paper has been replaced by
good notes and cash. B. F. Hastings
is president of the bank, and H. D.
Bancroft, formerly agent for the
guaranty fund commission, is cashier
and m anaging officer.

The Only Bank in the Union Stock Yards

O Friendship, of all things
Most rare, and theretofore most rare,
Because most excellent.— Lilly.

_____________________________________________

Achievement never flirts with quit­
ters.

Central W estern Banker, October, 1928

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Federal Reserve Bank of St. Louis

31

N ew s o f th e

Hold Annual Meeting
The annual meeting of the secre­
tary-treasurers of the national farm
loan associations of Nebraska, Iowa,
W yoming and South Dakota was held
in Om aha recently, under the auspices
of the Federal Land Bank of Omaha.
Eugene M eyer of W ashington, D. C.,
commissioner of the federal farm loan
board, came to Om aha to speak, and
with him came Floyd R. H arrison, a
member of the b o a rd ; Chester M or­
rill, secretary and general counsel of
the b o a rd ; and H. M. Shields, repre­
senting the national farm loan as­
sociations, all of W ashington. Mr.
Meyer addressed the Om aha Cham­
ber of Commerce at a public affairs
luncheon at noon.
Approxim ately 150 secretary-trea­
surers attended the meeting. The
speakers were D. P. Hogan, president
of the Federal Land Bank of O m ah a;
E. D. Morcom, treasu rer; E. F.
Iroutok, S. D. Thornton, Andrew
Kopperud, m anager of the Om aha In ­
term ediate Credit B a n k ; A. F. Beck,
J. A. Ontkes and Mr. Meyer.
Mr. Kopperud was toastm aster at a
banquet held at the Fontenelle in the
evening, and the speakers were T. C.
Hornby, vice-president of the Omaha
land b a n k ; J. C. Underwood of Chey­
enne, W y o .; and Chancellor E. A.
Burnett of the University of N ebras­
ka.

Analyzing Livestock Feeding
Results of livestock feeding opera­
tions which have been carried on for
the past two years, under the super­
vision of A. L. Coad, Cashier of the
Packers National Bank of O m aha in
cooperation with Louis Naeve, a
Sarpy county feeder, have been the
source of a good deal of favorable
comment from livestock feeders and
county banks in this section of the
country.
These operations are interesting
inasmuch as they represent the actual
results of feeding cattle under the
conditions that the ordinary feeder


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Omaha

to c k

M i»

Glenn Hedlund of Chappell was
high individual judge of the contest,
Raymond Nixon of Fairfield was sec­
ond, and Bruce Snyder of N orth
Platte was tenth, according to a tele­
gram received by the dairy depart­
ment of the agricultural college, re­
cently.
As a team the men were first in
judging Guernseys and Ayrshires and
second in judging Holsteins and J e r­
seys. They will bring home three
silver trophies, 20 medals, and a gold
watch as team and individual prizes.
It is the most sweeping win on re­
cord for the LTniversity dairy judging
Says That Bankers
Discourage Stockmen teams in several year’s competition at
“Although we have a big corn crop the W aterloo contest and the national
and lots of feed of all kinds, it does dairy show, according to R. F. M or­
not look as though feeding operations gan of the dairy department. The
would be unusually heavy in our sec­ team was coached by P rofessor M or­
gan and by E. N. Hansen, who ac­
tion,” said H ans Helgevord, of Eagle
Grove, la., who was in Omaha re­ companied the men to the contest.
Illinois was second, Minnesota,
cently buying cattle.
“Bankers are holding stockmen third, W isconsin fourth, Kansas, fifth,
down,” Mr. Helgevord continued, “as Iowa, sixth ; Missouri, seventh ; South
Dakota, eighth; Purdue, ninth; N orth
they are discouraging the purchase of
feeders by refusing to loan money to Dakota, tenth, and Michigan, eleven­
th.
buy cattle to anyone who is not sound
Mr. Hedlund began his successful
as a rock financially and in a posi­
judging career as a high school boy
tion to stand on a loss. T hat is the
in the Smith Hughes vocational
principal reason why the num ber of
classes at Chappell and has carried on
cattle put into the lots in our country
thru classes and contests at the agri­
so far is relatively small.
“O ur corn will make anywhere cultural college. Mr. Nixon won
fame as a 4-H club bov from Clay
from 50 to 80 bushels per acre. It
county when he and his teammate,
will not be ready to start husking for
some time, for while the frosts we Olin Brown, won national honors for
their dairy club demonstration and
have had killed the leaves, the stalks
also placed near the top in the junior
are still green and sappy and the ears
are not drying out as fast as they cattle judging contest at the national
dairy show. Mr. Snyder is the son
would if the stalks were dead. W e
of W . P. Snyder, superintendent of
also have plenty of good pasture and
the Experim ent Station at N o r t h
hay.”
Platte and has been a consistant judge
of livestock during his college train ­
Win Honors at Waterloo
ing. The men are juniors and seniors
Placing first, second, and tenth as
individuals, the U niversity of N ebras­ of the college of agriculture and re­
ka dairy cattle judging team easily present the senior team.
won the annual contest at the W ater­
Corn Reported 81 Per Cent Normal
loo, Iowa, D airy Cattle Congress.
The condition of corn in Nebraska,
They beat Illinois, the second team by
September 30 was 81 per cent of nor61 points.

has to face at his own farm.
The cattle are purchased just as
the average feeder buys his, fed cer­
tain rations, and then marketed. An
exact record is kept of the entire
operation, the cost of the cattle, the
feed consumed and its cost, and the
sale price. They are weighed every
30 days and a record of the gain is
kept together with the cost of the
grain for that period. A fter the cat­
tle are sold, an analysis of the figures
are made, and the practical results
shown.

Central W estern Banker, October, 1928

32
mal, a crop report issued by the B ur­
lington railroad showed.
The condition of potatoes was 891/2
per cent and of fruit 41 per cent. The
average rainfall during the past two
weeks was .89 of an inch.
Rain received recently has been
beneficial to farm ers, the report said.
The weather generally has been favor­
able for m aturing corn.

Bank Clearings
September bank clearings in O m a­
ha were $204,940,893, a gain of $26,634,315 over September of 1927. The
total this year made September clear­
ings third largest for all months, be­
ing surpassed by March, when clear­
ings were $214,800,000 and August,
when they were $205,501,902. H igher
prices for hogs and cattle, late grain
shipments, and a general improve­
ment in business conditions are re­
flected in the higher clearings, bankers
say.

Central Nebraska Irrigation
A detailed survey of the Platte river
will be made if the preliminary in­
vestigation that is now under way by
federal engineers, justifies that step,
it was announced recently by R. L.
Cochrane, state engineers, upon his re­
turn from North Platte.
The investigation would cover the
feasibility of the proposed tri-county
irrigation project in central Nebraska
and other irrigation and storage plans
in the central part of the state.
Cochrane was accompanied on his
trip to the Platte by federal and U ni­
versity of Nebraska engineers. The
survey was authorized under the
Flood Control Act of congress which
carries an appropriation of $129,000
for study of the Missouri and its tri­
butaries.

Wins Guessing Contest
On September Receipts
Every state fair visitor to the O m a­
ha Union Stock Y ards headquarters
in Lincoln is given the opportunity to
make a guess as to the total receipts
of live stock at Omaha for the month
of September and over 1,200 guessers
were recorded this year.
The winner was F. A. Kahle of
Kearney, who guessed 839,729 which
was remarkably close to the actual
figures 839,837 head. J. A. Kellenbarger of M erna came second, 840.000,
and Mrs. Lawrence Plolmes of Milburn. third, 842.684. F irst prize is
$25.00 cash, second $15.00 and third
$ 10.00 .

Blending Hog Fats
Popularity of soy beans as a crop,
and particularly the practice of feed­
ing soy beans to hogs, has made the
Central W estern Banker, October, 1928

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

Above, Sarpy county farm products exhibit held in the lobby of the Live Stock
National Bank of Omaha under the supervision of Anna T. Olsson

Sarpy County, Nebraska, until quite
recently, has never had a county agent,
nor has it had the usual county fair.
But Sarpy county was fortunate
enough to have located within its
boundaries a public-spirited banking
institution whose lobby, for the past
five years, has been donated to house
each autum n an exhibit of Sarpy
County field and garden products.
Much credit is due the personnel of
the Live Stock National Bank of
South Omaha for their friendly inter­
est and aid.
This year there was on exhibition
corn of all varieties adapted to that lo­
cality; several varieties of potatoes,

with the Irish Cobbler and the Early
Ohio fe atu red ; small grain, vegetables
of all kinds; canned fru its; and
samples of bread and cake. Reports
that the cakes were very tasty can be
absolutely verified.
Miss Anna T. Olsson, who heads
the savings departm ent of the bank,
and who, each year, has been especi­
ally interested in arranging and hand­
ling the exhibits, believes that this will
be the last year the exhibit will appear
in their bank lobby. Sarpy County
now has a county agent, and in an­
other year it is quite likely an effort
will be made to obtain permanent
quarters for fair exhibits.

subject of “soft pork” of much wider
interest than previously when most of
the soft pork was a product of hogs
fed on peanuts. The U nited States
Departm ent of A griculture, in co­
operation with the agricultural experi ­
ment stations of several of the states,
has been experim enting for several
years for the purpose of working out
feeding systems in which soft pork
can be avoided without sacrificing
valuable feedstuffs.
“The soft-pork problem,” a recent
bulletin, explains, “ fundamentally, is
a fat problem. W hen the fat of feeds
is stored by the hog there is no essen­

tial change in its character with re ­
spect to firmness or softness. The
fat of most of the common feeds is
soft and in some cases fluid at ordi­
nary tem peratures. W ith feeds low
in fat and high in carbohydrates there
is little similarity between the fat con­
sumed by the hog and that found in
the body when the animal has been
fed at least to a m oderate weight and
degree of finish. This is attributable
to the adm ixture of a firm fat synthe­
sized from the carbohydrates.”
In other words, the fat of the soy
bean is oily and is so stored by the
hog that feeds on it.

33
Burr Appointment Well Received
The selection of W . W . B urr as
dean of the college of agriculture to
succeed E. A. Burnett, recently made
chancellor, is well received in Lincoln
among those who are well acquainted
with the work of the college.
Mr.
B urr was the right hand man of Dean
Burnett, and has served as acting head
during the time that the dean was
acting chancellor.

Teller Resigns
Greig Millett, teller at the Am eri­
can Bank, Sidney, Nebraska, during
the summer months, left recently for
Oregon where he will continue his uni­
versity education. He is succeeded in
the bank by Miss K athryn Livoni.

Purchase Clydesdales
Seven Clydesdale horses, finely
marked, well matched and weighing
from 1,800 to 2,200 pounds, are now
the property of the Union Stock
Y ards company.
The long desired
wish of the company to have a sixhorse hitch to use at various fairs and
live stock shows has been realized,
and the Clydes are now comfortably
installed in a new eight-box-stall barn
especially built for their occupancy.
The horses arrived by express from
W innipeg, Canada, where they were
purchased recently by W. H. Schell-


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Federal Reserve Bank of St. Louis

ing checks when they lack sufficient
funds to cover the account, or w rit­
ing them with the intention of putting
money in the bank before the check
gets to the institution and then neg­
lecting to do it.

berg,
general
manager
of
the
Stock Yards company, after a trip
there with Bert Roberts, traveling re­
presentative. The extra horse can be
used in any position in case of emer­
gency.

Loveland Banker Dead

Livestock Dealer Dead

The death of O. C. Lovett, formerly
of the Larim er County Bank & T rust
Company of Loveland, Colorado, but
more recently employed at the Lirst
National Bank in Lort Collins, occur­
red recently at Loveland.
He is survived by his wife and two
small daughters. Many friends which
he made during his stay in Loveland
and in Lort Collins will mourn his
passing.
Mr. Lovett came to Colorado from
Hastings, Nebraska, a few years ago.
A fter a stay in Denver he came to
Loveland and later moved to Lort
Collins, where he was employed at the
time of his death.

Jam es H. Bulla, 72, livestock dealer,
died recently at his home, following
an illness caused by heart trouble. He
had been confined to his home since
January 21.
Mr. Bulla was a resident of South
Om aha since 1888, when he came from
Albany, Mo., where he was born, and
lived as a farm er. He was associated
with the Union Stock Y ards company
for 10 years, and for the past 30 years
has been a livestock dealer.
Mr. Bulla was president of the
Om aha Live Stock T raders’ exchange
from 1910 to 1923 and was one of
the founders of the National Live
Stock T raders’ exchange.

Adopt Check Charge

Annual Dividend

The new “short check” policy of the
Boulder, Colorado, banks is in force.
The five banks have agreed to charge
25 cents against all persons whose
checks are returned marked “insuf­
ficient funds.”
This is to put to an end an abuse on
the part of great many people of w rit­

The Security National Bank of
Randolph, Nebraska,, held its semi­
annual meeting of directors and share­
holders at the bank recently. Report
of the cashier showed an excellent
condition and from the profits a regu­
lar semi-annual dividend of 5 per cent
was declared on the capital stock.

FEEDER LOANS
WRITE US

LIVE STOCK NATIONAL BANK
Union Stock Yards

OMAHA

BOND INVESTMENTS
W rite fo r Our Attractive L ist o f Carefully Selected Bonds

Central W estern Banker, October, 1928

34
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South Dakota News
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Interest Questionnaire
Recently the South Dakota Bankers
Association sent a questionnaire to the
banks of the state asking for certain
inform ation relative to interest rates
being paid on time deposits.
In just one week the association o f­
fice had received 310 returns, or 74
per cent.

O f these 310 banks, 191 are pay­
ing 4 per cent interest ; 46 banks as
paying 3, or 3j4, or 3 and 4, or 3j4
and 4 per c e n t; 39 banks are paying 4
and 5 per c e n t; 32 banks are paying 5
per ce n t; two banks are paying 4 and
4j/2 per cent, while one is paying 4j2
and 5 per cent. This is a decided
downward trend as compared with the

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

M ID LA N D

BANK

LIM ITED

HEAD OFFICE: 5 THREADNEEDLE STREET, LONDO N. E.C.2

F A C IL IT IE S TO M E E T A L L B A N K IN G R E Q U IR E M E N T S

first survey made in 1926 when of 213
replies, 95 banks were paying 4 per
cent; 18 were paying under 4 per
c e n t; 31 were paying 4 and 5 per cent,
and 63 were paying 5 per cent.
Forty banks have reduced their rate
of interest since January 1, 1928, and
in practically every instance the banks
are pleased with the change. They
state almost without exception that
they lost no valuable accounts; that
there was no effective opposition of
the public and that the change is or
will be decidedly profitable to the
bank. It is also interesting to note
that while a total of 74 banks out of
310 are paying more than 4 per cent,
45 indicate that they are hoping to re­
duce their rate in the near future and
practically all of them would do so if
they could be assured of the co-opera­
tion of their competitors. Several
say they will do so regardless of their
competitor. The banks were almost
unanimous in this survey in the feel­
ing that no bank can afford to pay
more than 4 per cent.

County Bankers Meet
The bankers of Sully and Potter
counties, South Dakota, met recently
at Gettysburg and organized the Potter-Sully County Bankers Association
with the following officers : H arry M.
Griffith, Gettysburg, p resid en t; Milo
R. Brown, Onida, vice-president, and
Eugene Herrboldt, Tolstoy, secretarytreasurer.
There was only one bank in the two
counties not represented.
By unanimous vote the association
adopted the service charge of 50c per
month on all checking accounts which
fall below a daily average balance of
$50.00. The association also adopted
a service charge of 25c per item on
each custom er’s check which over­
draws an account. A charge of 25c
was also adopted on checks not paid
on account of lack of funds and which
are presented a second time— such
checks to be accepted for collection
only.

Perfect Average

FIRST NATIONAL
B A N K of CHICAGO
A ffilia te d

FIRST TRUST AND
SAVINGS BANK
Resources Exceed
$450,000,000.00

Central W estern Banker, October, 1928

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Federal Reserve Bank of St. Louis

F ran k O. W etm ore, Chairm an
M elvin A. T ray lo r, P resident

Lewis Heights school of Sioux
Falls, South Dakota, continued its per­
fect average on deposits for the sec-

35
ond week of the School Savings Sys­
tem sponsored by the Union Savings
association, when every pupil of the
school made a deposit at the regular
banking day.
W ashington high school was highest
in amount deposited with $311.88. The
total deposits for the week aggregated
$1,191.90, when 3.115 pupils out of an
attendance of 6,536 put money in the
school savings bank. This made a per­
centage of 47.5. The total now on de­
posit is $33,749.89.

Business Good
The South Dakota Bankers Asso­
ciation received 180 returns on its re­
cent survey of banks as to the condi­
tions of agriculture, general business
and banking this fall.
O f these replies, coming well scat­
tered from 51 counties, 60 estimate
that farm income would be greater
this fall than in 1927, 90 said that it
would be less, while 14 thought it
would be about the same. The dis­
tricts which expect an improvement
cover about one-fourth of the state.
The rest of the state is considered
either about the same as last fall or
in some places somewhat backward.
M any banks reported that farm ers
in their locality were holding back the
sale of grains but that thanks to winter
dairying, stock feeding operations and
other forms of diversified farming,
farm income would continue steadily
through the winter and in some points
would improve after the hrst of the
year. Possibly this condition is re­
sponsible for the fact that 112 com­
munities were anticipating a fall trade
as good as or better than last yrear,
while 60 expected a decrease. Many
banks stressed the growing importance
of dairying and poultry in stabilizing
farm income and the general business
of the state.

Meet in Faulkton
P. J. Dunn, Orient, South Dakota,
was elected president of the Faulk

County B anker’s Association at a
meeting held recently. O ther officers
elected included J. C. Green, Onaka,
secretary, and G. I. Gunnison, Orient,
treasurer. The chief business at the
meeting was a discussion of interest
rate on time deposits, service and stop
loss charges, and other m atters relat­
ing to bankers. South Dakota Bank­
ers Association was represented at the
meeting by George A. Starring, sec­
retary.

Resigns
LeRoy W endt has resigned his posi­
tion as assistant cashier of the Com­
munity bank of Garretson, South Da­
kota, to enter the State college at
Ames, Iowa, where he will pursue a
three year course in landscape archi­
tecture. Mr. W endt has been with the
bank for the past two years. M ark
Drobney will assume Mr. W endt’s
place at the bank.

Accepts New Job

Charter Issued

R. J. Harney, cashier of the Com­
mercial State Bank of W agner, South
Dakota, has accepted a position with
the London, Liverpool and Globe In ­
surance Co. He will have charge of
the farm departm ent business of that
company in N orth and South Dakota.
Mr. H arney has had charge of the
Commercial State bank insurance de­
partm ent for several years. H e will
have his headquarters at Aberdeen.

Upon recommendation of the South
Dakota banking departm ent, a char­
ter was issued by the secretary of
state for the incorporation of the
Brookings County Bank, Brookings,
with capital stock of $50,000. D irect­
ors of the new bank are: G. A. McGarraugh of Brookings, W . Z. Sharp
of Sioux Falls, C. A. Skinner, L. A.
Lemert, C. O. Quail, Philo Hall and
Iver O. Dybdahl of Brookings.

NIGHT DEPOSITORY
SYSTEMS
fo r

Progressive Banks
2 4 -H O U R D E P O S IT
S E R V IC E
3 6 5 D a y s in a Y ear

T h e only b u r g l a r pro o f
N ig h t D ep ository on th e
m a r k e t is a silent, a lto m a tic
“ R eceiving T e l l e r ’’ w hich is
a b s o lu te ly secu re b o th fo r
t h e b a n k a n d th e depo sitor.

F. E. DAVENPORT SAFE COMPANY
O fficial S a fe , V a u lt a n d T in ie lo c k E x p e r ts fo r
N e b r a sk a an d Io w a B a n k e r s A s so c ia tio n s

2061 Farnam Street

Omaha, Nebraska

BANK OF NEW S O U T H W ALES
AUSTRALIA

P A IO -IT I’

C A P I T A L _______________

.$ 37,500,000

RESERVE

F U N D ___________________

28.250.000

R e s e rv e L ia b i l i t y o f P r o p r ie t o r s

37.500.000

E S T A B L IS H E D

1817

------ $103,060,600

Aggregate A ssets 30th September, 1927

$438,905,640

A G E N T S — F IR S T N A T IO N A L R A N K , O M A H A . N E B R A S K A
G E N E R A L M A N A G E R , O SC AR L IN E S

HEAD OFFICE, GEORGE ST., SYDNEY

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

518 B r a n c h e s an d A g e n c ie s in a ll A u s t r a lia n States, N e w Z e a la n d , F ij i, P a p u a , M a n d a t e d T e r r it o r y o f N e w G u in e a
L o n d o n . T h e R a n k C o lle c ts f o r a n d U n d e r t a k e s the A g e n c y o f O th e r R a n k s , an d tra n s a c ts e v e r y
d e s c rip tio n o f A u s t r a lia n R a n k in g Iiu sin ess.

Central W estern Banker, October, 1928

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Federal Reserve Bank of St. Louis

and

36
Ralph Marlin, Allen Green and George
Mack.

Kansas New:
State Banks Consolidate
A recent consolidation in W hitewater, Kansas, was that of the Peoples
State Bank with the Bank of W hitewater. The combined capital and sur­
plus of the two institutions will be
$75,000.00. J. D. Joseph will continue
as cashier of the consolidated institu­
tions.

Becomes Cashier
George J. Parker, who, about a year
ago, resigned from the cashiership of
the Latim er State Bank of Latimer,
Kansas, has again taken his form er
position with that institution.

Take Farm Tour
The A gricultural Committee of the
Kansas Bankers Association accompa­
nied farm ers on a recent farm m an­
age ment tour to W ashington county.
B. A. Welch, cashier of the StateBank of Kingland, was a member of
the party.

Appointed President
Roy Schumaker, for many years
vice-president of the First National

Banker Dies

Bank of W etm ore, Kansas, has re­
cently been appointed president of the
institution to succeed the late E. R.
W ard. Ed Rebenstorf was named
vice-president.

Consolidation
Heads Clearing House

Remodeling

Ray L. Bone, banking commissioner
for Kansas, announces the recent con­
solidation of the Kingsdown State
Bank of Kingsdown with the F arm ­
ers State Bank of Bucklin. The
merged institution will do business
under the name of the Farm ers State
Bank with E. A. King as president and
Paul Taylor as cashier.

The F irst National Bank of W etmore, Kansas, purchased new bank
qparters some time ago and are plan­
ning to remodel the structure com­
pletely. Their remodeling plans in­
clude the use of the entire building.

Hilton H. W oodbury, one of the
pioneer bankers of southwest Kansas,
died recently at his home in Spearville.
He was 84 years old.

F. L. Carson, president of the F irst
National Bank of W ichita, Kansas,
was recently elected president of the
W ichita Clearing House Association.
Roy Foley, cashier of the State R e­
serve Bank, was made vice-president.

Buy First National
The Citizens National Bank of E u ­
reka, Kansas, has recently purchased
the F irst National Bank of that city
and are planning to move into the lat­
te r’s bank building. Officers of the
consolidated institution are B urt Ladd,

m je
Cijnse Rational panfe

L IN C O L N

Hotel Lincoln
S IO U X

O F F IC E R S
A lb ert H . W iggin

of

th e

E x e c u tiv e

C IT Y

Hotel Martin

B o a rd

John McHugh
C h a ir m a n

Enough cattle will be found some­
how, somewhere to go around.

Hotel Fontenelle

( J u l y 2, 19 2 8)

th e

It is not so much the being exempt
from faults, as the having overcome
them, that is an advantage to us.
-—Pope.

OM AHA

C a p ita l.......................................................... $ 60,00 0 ,0 0 0.0 0
S u rp lu s a n d P ro f its ................................ 77,00 0 ,0 0 0.0 0

of

Old Resident Dies

H O T E L S OF
H O S P IT A L IT Y

of the City of N e w York

C h a ir m a n

H ow ard Stone, president of the
Sharon Valley State Bank at Sharon,
Kansas, died recently from an attack
of heart failure. Mr. Stone was 54
years of age at the time of his death.

CEDAR

Robert L. Clarkson
C o m m itte e

R A P ID S

Hotel Montrose

P r e s id e n t

V ic e -P r e s id e n ts

Sam uel II. M iller
C arl J. Schm idlapp
Reeve Schley
S h errill Sm ith
H e n ry O llesheim er
A lfred C. A ndrew s
R o b ert I. B a rr

V ic e -P r e s id e n t

and

C a s h ie r

W illiam P. H olly
Second

F red erick W . Gehle
E dw in A. Lee
A lfred W . H u d so n
Jam es L. M ilier
B enjam in E. Sm ythe
Joseph P u lv erm ach er
L eon H . Jo h n sto n

V ic e -P r e s id e n ts

F ra n k lin H . G ates
T. A rth u r P y te rm ar
A rth u r M. A iken
A m brose E. Im pey
S. F red erick T elleer R o b ert J. K iesling
O tis E v e re tt
L y n d e Selden
W m . H . M oorhead Thom as B. N ichols
H aro ld L. V an K leeck G eorge S. Schaeffer
C o m p tr o lle r

T hom as R itchie

Central W estern Banker, October, 1928

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Federal Reserve Bank of St. Louis

S IO U X

G eorge E. W a rre n H u g h N. K irkland
G eorge D. G raves
Jam es H . G annon
F ra n k O. Roe
W illiam E. P u rd y
H a rry H . P o n d
G eorge H . S aylor
Sam uel S. Cam pbell M. H ad d en H ow ell
W illiam E. Lake
Joseph C. R ovensky
C harles A. Sackett

FALLS

Hotel Carpenter
C O U N C IL R L U F F S

Hotel Chieftain
And in
Los Angeles,
Hotel <
Alexandria
$2 Up.

M ARSH ALLTO W N

H otel Tallcorn
and T E N
O p e ra te d

fo r

o th e rs

Your

C o m fo rt

by

E P P L E Y HOTELS C O M P A N Y

87
Assistant Vice President

Colorado News
Represents Bank
Carl W . Sorensen, executive vicepresident of the F irst Industrial Bank
of Denver, was selected to represent
the institution at the ninth annual con­
vention of the M orris Plan Bankers
Association of Richmond, Va., Oc­
tober 8 to 10.
The convention was presided over
by Thomas C. Boushall, president of
the M orris Plan Bank of Virginia and
general chairman of the convention.

Clearings Gain
More than $3,000,000 gain in bank
clearings from the period Jan. 1, 1928,
to the current date, as compared with
the corresponding period of 1927, is
shown by figures released through the
Pueblo, Colorado offices of R. G.
Dunn & Co., national bank clearing
house. Gains are also shown for the
month as compared with the corres­
ponding period of 1927. W eek’s clear­
ings also show a gain.
Total clearings for the period Jan.
1, 1928, to the current date were $54,629,407.14, and for the corresponding

months of 1927 were $50,744,003.53.
Clearings for August, 1928, $6,635,024.66 and for the month of August,
1927, $5,878,124.73.

Elected Committee Member
Clark G. Mitchell, vice-president of
the Denver National Bank, has been
selected a member of the executive
committee of the clearing house sec­
tion of the American Bankers Associa­
tion. Mr. Mitchell, on his way to the
convention, flew from Chicago, 111., to
Toledo, O., with Colonel Lindbergh.
A wire to Denver friends stated that
he experienced the “biggest thrill
ever.”

Named President
Raymond C. Thatcher has been
named president of the F irst National
bank of Lam ar to succeed his brother,
John H. Thatcher, who died recently.
Raymond Thatcher is an officer of the
F irst National Bank of Pueblo, the
International T rust Company of Den­
ver, and the First National Bank of
Denver.

Oliver Arnold has been made as­
sistant vice-president in the depart­
ment of banks and banking of the
Denver National Bank.
F or six years before becoming con­
nected with the Denver National Bank
Arnold was with the Federal Reserve
Bank of Kansas City, working out of
Om aha and Denver and specializing in
livestock and agriculture.
He has been with the local bank for
nearly two years as a field man.

Large Resources
The combined resources of the eight
Delta, Colorado, county banks is from
two and a half million to three million
dollars, as indicated by official state­
ments issued periodically by those in­
stitutions.
There are four state and four na­
tional establishments in the county, as
follows: F irst National Bank of Del­
ta, F irst National Bank of Hotchkiss,
F irst National Bank of Paonia, F irst
National Bank of Craw ford, Colorado
Bank & T rust Company of Delta,
N orth Fork State Bank of Hotchkiss,
F ruit Exchange State Bank of Paonia,
and C raw ford State Bank of Craw­
ford.

T H E B A N K E R ’S O P P O R T U N I T Y
Presenting a Few o f the Possibilities Open to H im
S u rp lu s
M on th ly
an d
I n v e s tm e n t
S a la r y §
Deposits
P rofits
Capital
$ 1,000.00
CHA
150
$115.00
Missouri
$70,000.00
$5,800.00
$1 0,000.00
4,500.00
150.00
WAD
500
60,000.00
O k lah o m a
10,000.00
1,700.00
5,000.00
DHB
250
100.00
K ansas
85,000.00
10,000.00
5,150.00
6,000.00
135.00
GJB
K ansas
100
80,000.00
10,000.00
6,700.00
7,500.00
175.00
K LD
600
84,000.00
O k la h o m a
500.00
15,000.00
9,500.00
150.00
K ansas
200
90,000.00
PBB
2,000.00
16,000.00
10,000.00
145.00
M issouri
125,000.00
200
HSA
10,000.00
22,500.00
11 ,000.00
Kansas
150.00
K02
250
1,800.00
75,000.00
15,000.00
11,000.00*
M issouri
175.00
500
90,000.00
15,000.00
4,000.00
JA A
14,500.00
Kansas
140,000.00
150.00
2,000
2,000.00
25,000.00
SMB
15,000.00
M issouri
250,000.00
175.00
RKA
1,500
20,000.00
28,000.00
200.00
19,000.00
Kansas
13,000.00
20 0,000.00
HPB
500
25,000.00
Kansas
240.00 ( 2 ) 1 9 ,6 0 0 .0 0 *
10,000.00
5,500.00
100,000.00
HRB
300
20,000.00
Iow a
600
250,000.00
150.00
EBE
25,000.00
5,000.00
M issouri
65 0,000.00
200.00
20,000.00
M FA
5,000
50,000.00
32,000.00
M issouri
HGA
25,000.00
25,000.00
55 0,000.00
1,800
20,000.00
t
K ansas
MMB
12,000.00
300,000.00
20,000.00
3,000
30,000.00
i
VPD
O k la h o m a
600
25,000.00
10,000.00
17 5,000.00
20,000.00
Î
BDB
K ansas
6,000.00
120,0 00.00
200.00
20,000.00
17,500.00
300
C o lorado
225.00
25,000.00
30,000.00
600,000.00
FLC
21,000.00
1,500
MRA
M issouri
13,000.00
175,000.00
200.00
20,000.00
21,000.00
400
K a n sa s
12,000.00
KOB
20,000.00
200,000.00
150.00
24,000.00*
200
35,000.00
160,000.00
MCA
M issouri
25,000.00
10,000
33,000.00
Î
25,000.00
25,000.00
800,000.00
HGB
Kansas
44,000.00
2,000
Î
30,000.00
35,000.00
50 0,0 00 .00
BKB
K ansas
Large
70,000.00
t
§ S u b s ta n tia l com m issio n s f r o m well e sta b lish e d “ side l i n e ” b u sin ess also in c lu d e d in m a n y of above.
* In c lu d e s d e sira b le dw elling.
J S a l a r y to be a g r e e d upon.
No.

S ta te

Size Town

BANKERS BROKERAGE COMPANY
9 1 9 B a ltim o r e A v e n u e


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

(S u cces so r to th e C. C. J o n e s I n v e s t m e n t C om p an y )
A LW A Y S C O N F ID E N T IA L — A L L W AYS
K a n sa s C ity, M isso u r i

Central W estern Banker, October, 192S

38

H a v e Y ou H e a r d T h is O n e ?
Unanimous
In “Good Housekeeping,” R uth
Boyle says she asked a num ber of
business men, a manager of a build­
ing and loan association, the president
of a bank, a vice-president of a trust
company, and the head of an invest­
ment company the same question,
“How should the first savings of a
young m arried man be invested?” I
said to myself, “Every one of them
will recommend his own specialty.” i
was wrong.
Every one of them said, “In su r­
ance.”— Royal Arcanum Bulletin.

Just a Short Distance
“Hello, Hayseed,” said the face­
tious youth. "H ow ’s it for a lift to
Centerville?” He jumped into the
car w ithout waiting for an answer.
Twenty minutes passed.
“Quite a distance to Centerville,
isn’t it?”
“ Uh, huh.”
Tw enty minutes more.
“Say, how far is it to Centerville?”
“Few thousand miles if you go this
way. ’Bout twenty if you get off and
walk back.”

Not What He Meant
New Student to Traffic Cop: W here
can I find a nice, big, airy room,
cheap ?
Traffic Cop: T urn left on the red
signal and I can accommodate you.

In Probably Came Off
H e:
She:
He:
S he:
H e:
close to

“Your rouge is coming off.”
“No, it isn’t.”
“It sure is.”
“I ’m sure it isn’t.”
“Say, listen, any time I get this
a girl her rouge is coming off.”

Scrap parked in the dealer’s window.
A man stopped at the window, read
the sign and entered the shop. “I ’ll
take a chance,” he offered, “where’s
the money?”

Effective
A fter the smallpox epidemic had
been checked, an old negress protest­
ed vigorously when the health officers
started to take down the sign they
had put up on her house.
“W hy don’t you want us to take
it dow n?” one of the officers asked.
“Here ain’t be’n a bill collectah
neah dis house sence dat sign was
nailed up. You all please let it alone

Take Heed!
An Ohio farm er, living along a
commercial air route has this special
warning for aviators, painted on the
roof of his barn:
" If you kin read this sine you are
too danged low. Fumadoolin over
these premises is risky. And we ain’t
in no shape to tinker with a corpse.

Why He Went
A woman went to the bank and, not
finding the cashier who usually waited
on her there, asked where he was.
“O ut of town,” said the assistant
“Gone for a rest,” asked the woman.
"No, to avoid it,” replied the clerk.

Inherited the Gift
The schoolmaster wrote on the back
of a boy’s monthly re p o rt:
"A good worker, but talks too
m uch.”
The father wrote under this: “You
should meet his m other.”

Business Ethics
A Dependable Boss
Claud: "I beg your pardon, sir. My
wife wants me to help her clean house
this afternoon. W ould you let me
off. sir?”
Boss: “I certainly would not!”
C lauded: “Thank you very much,
sir. I knew I could depend on you.”

Who Wouldn’t?
“W ho will drive this car away for
$50.00?” read a sign on the old H unka

Choose the best life, for custom
(habit) will make it pleasant.
— Epictetus.

Tittle Abie heard people talking
about "business ethics,” and asked his
father the meaning of the term.
"W ell,” said his daddy, “I will ex­
plain. A customer comes in the store
and buys a six dollar pair of shoes.
He hands me a ten dollar bill. On die
way to the cash register 1 notice that
there are two ten dollar bills sticking
together. Now, here’s where the ‘busi­
ness ethics’ comes in— should I tell my
partner.”

T H E C E N T R A L W E S T E R N B A N K E R O F O M A H A , P u b l ish e d

A New Departure
It is an interesting fact that the
largest banking institution in this
country will make loans ranging from
$1,000 down to fifty dolars. The N a­
tional City Bank of New Y ork has
adopted this policy for salaried people
without collateral. They m ust give
notes endorsed by two responsible
persons, and before the loan is granted
"must show a constructive reason for
borrowing.” The only charge made for
the service is a 6 per cent discount.
The borrower will have a year in
which to pay, under a novel condition,
which is that he shall begin immedi­
ately the weekly, semi-monthly de­
posit of a fixed sum “which, with the
compound interest to be paid thereon
to the borrower, will equal the face of
the note at m aturity.”
Could a more desirable policy of
loaning money to small borrowers be
devised for respectable salaried men
who may at times be compelled by un­
happy circumstances to raise a sum
of money? It is the fact that worthy
salaried men so often fall into the
clutches of loan sharks, and the fu r­
ther fact that big city banks do not
find small loans profitable, that makes
this new policy of the National City
Bank notable.
It shows that a cor­
poration may have a soul.
Sickness, death or other legitimate
emergencies may come to salaried men
— often do come. This kind of bor­
rowing will not only help them out,
but also, because of its sound require­
ments, may give them a training in
economics for a year that will put
them where they will not have to
borrow when subsequent emergencies
overtake them.—B y W . G. Sibley in
Chicago “Journal o f Commerce.”

W hat is life but the choice of that
which contains the least of ev il!
—Haydon.
A faithful friend is better than
gold—a medicine for misery, an only
possession.— Burton.
— Alcott.

by

D e P uy

P u b lish in g

Company

416 A rth u r Bldg., Omaha, N ebraska
C l if f o r d

D e P u y , P u b lish er

G e r a l d A. S n id e r , A ssociate P u b lish er

R. W . M o o r h e a d , E d ito r

W in . H . M ass, 1221 F ir s t N ational B ank B uilding, Chicago, V ice-P resident

Central W estern Banker, October, 1928

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

H . H . H a y n e s , A ssociate E d ito r

X\]E cordially invite the business
of any Nebraska Bank contem­
plating a change in its local
correspondent or having need for
an additional Chicago connection.
Every Banking Facility

<7he NORTHERN T R U ST Company
CHICAGO
D irectors
A . WATSON ARMOUR
Vice President, Armour & Company

EDWARD L. RYERSON, Jr.

SEWELL L. AVERY

MARTIN A. RYERSON

President, U. S. Gypsum Company

WALTER BYRON SMITH

ALBERT B. DICK, Jr.
Vice President, A . B. Dick Company

DE FOREST HULBURD
JOHN T. PIRIE

SOLOMON A. SMITH

KERSEY COATES REED
Secretary, Marshall Field & Company


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Federal Reserve Bank of St. Louis

EZRA J. WARNER

President, Sprague, Warner & Company

Carson, Pirie, Scott & Company

C O R N E R

JOHN STUART
President, The Quaker Oats Company

President, Elgin National Watch Co.

O R T H W E S T

Vice President, Joseph T. Ryerson & Son, Inc.

LA

President, The Northern Trust Company

S A L L E

&

M O N R O E

S T R E E T S

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

a

Birds of a
Feather

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A m o n g o u r c o rre s p o n d e n ts
are listed m a n y of the le a d in g
b a n k s of this te rrito ry .
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mony

of the a d v a n t a g e s of

o u r collection d e p a r t m e n t .

The Omaha
National Bank
FA R N A M

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M I L L I O N S