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Federal Reserve Bank of St. Louis

P age 5

Y ou A r e I n v ite d to

November 1 to
Omaha invites you to the Ak-Sar-Ben
Stock Show and Diamond Jubilee, to
eight great nights of fun and exposi­
tion. Reduced rates on all railroads
will be given all visitors.
The celebration promises to be the
most stupendous ever held in this
part of the country. Omaha’s civic
leaders have subscribed more than
$100,000 for the entertainment of
Stock Show and Jubilee visitors.
You are invited to make this bank
your headquarters while you are in
Federal Reserve Bank of St. Louis



First National

I Bank of Omaha




N EW á
C H A T H A M PHENl'X NATION^ AL BANK, New York, has raised
its annual dividend rate from $16 to
$20 by declaring a quarterly dividend
of $5. The dividend will be paid Oct.
1 to stock of record Sept. 13.
jV/f ERGER of the National City Bank
of New York and the Corn Ex­
change Bank Trust Company, an­
nounced recently as having been re­
commended to stockholders, gives the
National City total resources of more
than $2,300,000,000.
This consolidation would give the
National City more than 100 branches
in the Metropolitan area of New York.
The Corn Exchange system comprises
more than 60. National City is now
closely approached by the Guaranty
Trust Company in point of total re­

A N AVIATION club, to be called
the Hangar club, for bankers has
been organized in New York. Presi­
dent H. B. Baker of the National City
Company has announced 200 members.
Forty or more bankers belong since
the membership will be restricted to
those financing or m anaging some
branch of the flying business.

of several years’ hard work along that
In a recent statement Commission­
er Veigler reported that there now are
some 50 consolidations under way in
the state amongst country banks and,
in the past six years, Mr. Veigel points
out, there have been 147 consolida­

TRADE inaugurated trading in se­
curities on its floor recently, thus
giving Chicago another large stock
market in addition to the Chicago
Stock Exchange. Active trading mark­
ed the first day’s business, 65,078
shares being chalked up despite the
limited number of 20 issues listed. The
volume was in excess of that anticipat­
ed by executives of the Board.

p O R M A L consolidation of the Sea­
board National Bank and the Equit­
able Trust Company was completed
recently, merging the identities of two
outstanding New York banks. The new
institution, with total resources in ex­
cess of $800,000,000 will retain the
name and charater of the Equitable
Trust Company of New York.

I EE insurance in force in the Unit­
ed States is in excess of $100,000,COMMISSIONER A. J. VEIGEL 000,000, that amount having been
IG N ITED STATES Secret Service
of the state banking department reached in the latter part of July, this
agents are making one of the most of Minnesota is witnessing the culmin­ year.
intense and determined hunts in the ation in the increasing number of coun­
This vast sum represents twice the
history of the Treasury Department try bank consolidations in Minnesota value of all the farm lands in Ameri­
for a super-gang of coun­
ca, three times the value
terfeiters which is print­ 1111111111111]11■11111111!1111111tl111111111II11111111111111111111111111111111M11111111111111111111111111111111111111111111111111II11111|1111111]11111111111111111111|111111■111!111111111111111011111!11II1111111111II1111111)11111111111111111111111111 of the homes of our peo­
ing and passing what the
Vol. 24 No. 9
October, 1929 ' ple, six times the value of
F ed eral officials and
all the automobiles in use,
bankers describe as an
almost one-third the val­
“ alm ost p e rfe c t $100
ue of all the tangible
p ro p erty in, the United
Last Minute N e w s ............................................................... 3
States and Canada.
Legal Brain Teasers ............................................................4
ID E A N S w ere laid in
Cartoons of the M o n t h ..................................................... 7
Wisconsin recen tly
IO S E P H R. M U R ­
The Best Investment YouCan M a k e .................................10
fo r the organization of
P H Y , who for the
Bonds and I n v e stm e n ts ....................................................13
another large bankhold­
year has been asso­
I n s u r a n c e ............................................................................... 19
ing co rp o ratio n in the
with the Corn Ex­
Nebraska N e w s ....................................................................23
N o rth w est when stock­
N ational Bank
News of the Omaha Stock Y a r d s ....................................27
holders and directors of
st Company,
South Dakota N e w s ............................................................. 30
the First Wisconsin Na­
in the posi­
Utah N e w s ............................................................................ 31
tional Bank of Milwau­
Kansas N e w s ....................................................................... 32
kee voted to recommend
in charge of correspond­
to stockholders the f o r ­
ent relations, has resign­
Colorado N e w s ...................................................................33
mation of such an insti­
ed to accept a Vice-Pres­
tution, “made necessary,”
idency of Edw in Bird
the directors stated in an
W ilson, Inc., Financial
T he Central W estern B anker , O maha
official statement, “by the
Advertising Agency, with
Published monthly at 416 Arthur Bldg., Omaha, Nebraska
efforts of outside banks
offices in New York, Chi­
Subscription, 25 cents per copy; $2.00 per year.
Entered as second-class matter at the Omaha postoffice.
in other states to acquire
cago, A tla n ta and Los
Wisconsin banks.”
Federal Reserve Bank of St. Louis



In Th is Issue

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Central Western Banker, October, 1929

/. “The Illicit Sale"

In This Article

2. “The Stolen Checlf'
3. '‘A Question of Credit"

4. “A M ichigan R u n "
5. “A t P a r”
6. “The Cashier's Chedi A gain"

Test Your M ind
A CO LO RA D O seller sold liquors
without a license, and the buyer
paid by check.
And the check was a forgery.
“I cannot be convicted for passing
a forged check when it was given for
goods sold contrary to law,” the buy­
er argued.
“The goods in question were the
subject matter of lawful trade, and
the illegality is no excuse for your
crime,” the state retorted—and the
accused was convicted in a case re­
ported in 4 Colo. 126.
The Stolen Check
If A steals B’s Wade Sedan, sells it
to C, who buys in good faith and for
value, and with no knowledge of the
theft, B may recapture his car wher­
ever he finds it.
On the other hand, if A steals B’s
money, and pays it to C in the usual
course of business, C has a good title
against all the world, including even
the real owner.
Suppose, however, that A issues a
check payable to bearer, B steals it
and transfers it to C, who takes it in
good faith and for value.
Is C protected in this case?
On this point the law is that a goodfaith holder of a check transferable by
delivery acquires a good title even
from a thief of finder. In an Ohio case
A made a check payable to B without
the words “order” or “bearer,” B en­
dorsed it in blank, C stole the check,
cashed it at the bank on which it was
drawn, and the Ohio Court ruled that
the bank was protected.
A Question of Credit
A had forged B’s name to a note,
discounted it at the X bank, was plac­
ed on trial, and A’s lawyer was crossexamining the bank cashier.
“You knew A and B very well, I
presume,” the attorney asked.
“Certainly,” the witness agreed.
“Would you consider A’s credit as
good as B’s?”
“And if A had offered his own note

you would have discounted it just as
“That makes no difference,” the
court interrupted. “The crime of for­
gery was complete when the note was
signed and the fact that the forger’s
own name would have carried equal
credit is immaterial in a criminal pro­
And the court was right—see the
case of Adkins vs. State, 56 S. W. 63.
A Michigan “Run”
A customer of a Michigan bank saw
a revolver on the cashier’s desk, told
somebody he had seen a “gun” at the
bank, by the time the news had gone
through four or five mouths it was re­
ported that there was a “run” on the
bank, and a genuine run developed.
“The bank is perfectly safe, and
you will only loose a month’s interest
by withdrawing your money,” the
cashier pointed out, some of the de­
positors accepted this assurance, and
left their money in the bank.
“We don’t care how safe the bank
is—we want our money,” other de­
positors maintained, got their cash, the
run was so serious that the bank ac­
tually “went under,” and then the de­
positors who had been persuaded to
leave their money started suit in the
Michigan courts, claiming that pay­
ments made to depositors after other
depositors had been persuaded to leave
their funds in the bank was an illegal
The Michigan Supreme Court ruled
on these facts in Stone vs. Genson,
111 Michigan Reports, 592, and decid­
ed that there had been no preference
under these circumstances.
“At Par”
The local bank had bought a local
bond issue at par, but charged the
city an attorney’s fee of $500 for re­
porting on the legality of the bonds,
and $200 more for printing and inci­
dental expenses, whereupon certain

Central Western Banker, October, 1929
Federal Reserve Bank of St. Louis

minority rate-payers applied to the
courts for an injunction.
“The state law says that no city
shall sell its bonds at less than par, so
it is a mere matter of arithmetic that if
the city receives par less $700, it’s a
plain violation of the law,” the rate­
payers contended.
And the court ruled against them on
the ground that payments legal and
other expenses made in good faith,
and not as a mere blind to avoid the
law, is not a violation of the statute.
The Cashier’s Check Again
A farm machinery company held a
note against a Kansas customer, and
sent the note to a Kansas bank for
“Have collected note $3,184, wire
instructions for proceeds,” the bank
“Send draft,” the machinery com­
pany replied, the draft was not sent,
an agent of the machinery company
called at the bank on August 21, re­
ceived a cashier’s check for the amount
collected, forwarded it to the machin­
ery company, the machinery company
deposited it for collection, the check
reached the Kansas bank on August
29, and the Kansas Bank remitted a
draft drawn on a trust company in
Kansas City.
This draft was not paid, the Kansas
Bank Commissioner took charge of
the Kansas Bank on September 8, at
that time the cash on hand amounted
to $400, but at the time the cashier’s
check was issued the bank did not
have actual cash on hand to cover it.
“We’re preferred creditors under
these circumstances,” the machinery
company contended.
In ruling that the machinery com­
pany was a general creditor in (252
Pacific Reporter 247) the Supreme
Court of Kansas says:
“The transaction was the ordinary
one of the purchase of a draft for
convenience in the remitting of mon­
ey, and the giving to it of a different
name cannot alter its essential char­


Would It Help If
Bankers Were Licensed?
Iie p o r t p r e se n te d b y W . W . B o w ­
examination the qualifications of the
/V COMMITTEE of the House of
m a n , S e c r e ta r y K a n sa s B a n k e r s
candidate, morally, intellectually, tem­
Secretaries, appointed by his
peramentally, and otherwise.
Excellency the President, has been
m a n o f C o m m ittee on S ta te L ic e n s ­
So far as the intervention of state
charged with the responsibility ( 1) of
in g o f B a n k e r s o f S ta te S e c r e ta r ­
bankers associations is concerned it is
considering; (2) of formulating an
ie s ’ S e c tio n , a t m e e tin g o f S e c tio n
difficult to see how they could stand in
opinion and (3) of making report of
a t A m e ric a n B a n k e r s A s so c ia tio n
any other than a mere advisory rela­
their findings to this tribunal upon the
C o n v en tio n , San F ra n cisc o .
tion. They are private organizations ;
subject nominated in the caption. The
not agencies of government. The ad­
Committee was instructed to include
ministration of a state licensing act
in its scope of investigation the fol­
could not lawfully be bested in such a
lowing :
purely private and wholly voluntary
1. What states, if any, have or are
at the receiving teller’s station, organization. The state must charge
considering the licensing of men and ment,
in safety deposit administration, as in some duly constituted board with law­
women to engage in banking?
ful authority to administer law. The
2. How far should the licensing of the discount portfolio.
act might, however, properly provide
bankers extend ?
Hard to Accomplish
that the examining board be appointed
3. If adopted as a policy of the
Again, if any state, through its leg­ by the Governor, from among nomi­
state, how should the state proceed to
islation, ordains that the anointing oil nations proposed by a state bankers
license bankers?
4. In what way may state bankers’ shall be poured upon the head of bank­ association.
With reference to the extent of the
associations properly cooperate with ers, it is difficult to see but one possible
sentiment which may ex­
the state in the adminis­
ist among bankers, and
...................................... .............. ......................................mi.......
tration of such a system.
the public, favorable
5. How much senti­
system of licensing
ment exists among the
bankers, it must be said
people of the states and
that there are no statisti­
“ T h e a p p o in tm e n t o f a p u b lic e x a m in in g b oard w ith the
among the bankers them­
cal tables on the subject,
selves, favorable to a sys­
and in the nature of things
b e fo r e th e m , an d p ay a lic e n s e fe e , is b u t a n ad d ed p ie c e o f
tem of licensing bankers?
there would not be. In­
6. Could the work of
formation derived from
e rs b e c o m e b e tte r b a n k e r s b y n ot b e in g b r a n d ed b y so m e p u b ­
the American Institute of
state secretaries is
lic board , b u t w h e n d ilig e n tly a n d p a tie n tly th e y h a v e r e c e iv e d
Banking and the coopera­
that there has
tr a in in g in b a n k in g a n d w h e n b y h ig h e r to k e n s th e g r a c e o f
tion of state bankers asso­
no agita­
G od r u le s th e ir h e a r ts a n d th e fe a r o f th e L o r d is e v e r b e fo r e
ciations, with state uni­
tion among the bankers of
th e ir e y e s ! ”
versities be related ef­
their respective states, nor
have there been echoes
fectively to the adminis­
from the vox populi. Such
tration of a state licensing
sentiment as exists ap­
system ?
Instead of answering a la carte, let way through which it can be accomp­ pears to have had its rise from within
the answer be a la truck. The com­ lished. It must needs be through a the banking family and without much
mittee finds that there are no states in board and it can scarcely be conceived of pronounced assertiveness.
the Union having or considering the how such board would be created,
Key to Situation
licensing of bankers, save only that except by appointment, nor of whom
feasibility and desirability
which obtains in a limited way in the it could be composed other than of
State of Nebraska, where it appears bankers, though sooner or later there of relating the A. I. B. work and that
bank executives, charged with the re­ would doubtless be a demand that of bankers associations cooperating
sponsibility of making loans, are re­ there be dirt farmer representation on with the state universities in the in­
quired to secure from the state a the board. Manifestly the candidate terest of better bank management, let
license. It is difficult to see how such for the degree of bachelor of banking, it be said that there lies one of the
a system measures up to any proper or master of banking, or doctor of keys to the situation infinitely superior
conception of the licensing of bankers. banking must pass examination, writ­ and fraught with far greater possibili­
If a system of licensing of bankers is ten or oral, or both. The examining ties than the uncertain and feeble ac­
to be established at all. it should fair­ board of three or five, or more, would complishments sought to be achieved
ly compass the entire scope of the consist of men doomed by the Gover­ through this well meant but obviously
bank; for incompetency, inferiority, nor, or other appointing power, to be ill thought out system of the licensing
infidelity and all else that contributes equal or superior to the average of of bankers by public boards.
No sensible person will doubt the
to the infirmity, and finally to the in­ those engaged in the banking business
solvency of banks, have origin quite and it would doubtless be an honest wisdom of raising the standards of
as frequently in the accounting depart- attempt to determine by means of this qualification of all those who now or
Federal Reserve Bank of St. Louis

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Central Western Banker, October, 1929


may in future hold official positions
in banks. He who gives a moment to
the serious consideration of this far
reaching movement will not fail to be
impressed with the magnitude of the
problem. It cannot be accomplished
by legal fiat, nor by rituals prescribed
by an administrative board. The most
that can be done by either is to merely
permit men to engage in the banking
business, it cannot qualify them. It
must be clear to every thinking per­
son that the law can do little or noth­
ing to qualify men to be good bankers.
All the law can do is to create a sys­
tem of banks, provide for their gov­
ernment, impose limitations of capital,
prescribe the number of directors, es­
tablish a department of supervision,
clothe official boards with authority to
grant or refuse charters, impose
stockholders liabilities, clothe the
banking department with a large
measure of authority in all cases of
infractions of the law, and with
power in case of insolvency to take
charge of the institution and close out
its affairs. The law has to do with
bank organization and with supervis­
ion over bank management, but it
cannot qualify the bank merger.
Boards of directors, chosen by the
body of the shareholders, make de­
liberate choice of those whom they
will call to manage the bank’s affairs.
The immediate question now pre­
sents itself: Shall there be established
in every state a board of examiners,
before whom each applicant aspiring
to engage in the banking business,
must first present himself and pass
examination before being permitted
to engage in the business of banking?
If so, and if left to the initiative of
the individual states, there would be
forty-eight varieties of standards and
possibly in some states no standards
at all. Moreover, it could not apply
to the 26,000 banks now existing in
which there are probably 200,000 offi­
cers and employees, who for years to
come will be continuing in the service
of their institutions—unlicensed, un­
honored, and unsung. From the be­
ginning this agitation for the licensing
of bankers has pointed for justifica­
tion to the fact that licenses are re­
quired of physicians and of lawyers.
“Why not license bankers like we li­
cense doctors?’’ is the cry. The ans­
wer is “Amen, and Amen, and Amen.’’
Making it Work
If bankers could be licensed as phy­
sicians are licensed, there would be
something to the proposal. A phy­
sician, to be licensed, must first have
a four year high school course, then a
four year college or university course,
then from two to four years in a medi­
Central Western Banker, October, 1929
Federal Reserve Bank of St. Louis

cal college, then for a time interne
somewhere, and then present himself
to some competent board in each state,
not for examination to determine his
ability as a physician or surgeon, but
to determine whether he carries cre­
dentials from reputable medical insti­
tutions of high standing. Likewise
with the lawyer and the minister, and
other professionals. He must first
have qualified, by years of toilsome
and painstaking preparation, and then
when he knocks at the door of the
state, may be admitted. Again let it
be said if bankers could be admitted
on a basis like that, the whole pro­
posal would be different. How lit­
tle resemblance does the present pro­
posal, to license bankers by public
boards, bear to the grant of permis­
sion to physicians and other profes­
sional men to engage in their respect­
ive callings. In no way would such a
meaningless examination qualify the
applicant to be a banker. His quali­
fications would be the same after the
examination was over as before. He
has simply presented himself to a jury
of his peers who, after a brief period
of academic questioning, proceed to
pick up the rubber stamp, give it a
little fresh ink, and impress upon his
forehead the word “licensed.” The
whole thing would be little or nothing
more than a gesture.
Furthermore, federal and state laws
do now contain ample authority for
the control of banking and do now
empower bank commissioners and
banking boards with authority for
looking into the qualifications of bank
officers, and of removing them, or re­
quiring the directors to remove them,
for dishonesty, incompetency, or in­
subordination to lawful authority.
Already an adequate system of ex­

aminations exists, administered by au­
thority of the law of the state, to de­
termine how much a banker knows
and these examinations reveal not
only what he knows, but what he does
not know, and, moreover, reveal what
he does, both right and wrong. The
examination of the institution reveals
masterly management on the one
hand, or infirmity on the other. One
little examination of the banker him­
self, given once for all, and that for
a life time, adds nothing, and this be­
comes the more apparent when it is
remembered that good banking de­
pends upon the sound judgment and
the spotless integrity and the estab­
lished reputation of its managing offi­
cers, far more than upon any amount
of book knowledge. Indeed the best
banker is the banker who would be a
good banker were there no banking
laws and were there no supervising
agencies. These are qualities that
cannot be crowded in to an examina­
tion by a public board.
The weakness of this proposal is
that it assays to do great things and
accomplishes nothing. It promises
what it cannot perform. It is a spe­
cious thing and easily invites applause
when every thinking banker knows
that it is a mere formula, a mere cere­
mony, and adds nothing to the integ­
rity, intelligence and ability of the
bank officer.
What then? Shall nothing be done?
Yes, a thousand times yes! But let
that which is done, whether by the
soverign power of the state or whether
by the influence of the great organiza­
tion of the American Bankers Asso­
ciation, or by whomsoever, let that be
done which will accomplish the ends
sought to be attained. If degrees of
(Continued on Page 28)



— E n r i g h t in t h e N e w Y o r k World.

Federal Reserve Bank of St. Louis

— W a r r e n i n t h e C l e v e l a n d News.

TO M A R K E T , TO M A R K E T !
— E v a n s in t h e C o l u m b u s Despatch.

Central Western Banker, October, 1929


M O N-T A N A.





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T h i s is one of a series of advertisements in a national program of adver­
tising hy the N[prthwe§l ‘B ancorporation. This advertisement appeared
in N ation’s Business for September reaching the business executives of
America and carrying to them a message of strength of the ‘Bancorporation
and its importance to the territories served by its affiliated institutions.

Central Western Banker, October, 1929
Federal Reserve Bank of St. Louis


of the Midwest and Northwest

To make the Northwest financially independent and to furnish opportunity for a^ greater
local and sectional development of this fast growing territory, is the inspiring task set
themselves by the organizers of the Northwest’s great banking group.
To acco m p lish th is ta s k th e N o r th w e s t B a n c o r p o r a t io n h a s called into service as its officers a n d di­
re c to rs t h e le a d e rs in b u sin ess an d finance fro m all over t h e N o rth w e st. T h e w isdom a n d ex perience
of th e s e m en a re n ow w o r k in g fo r th e a d v a n c e m e n t of th e in t e r e s t of all affiliated in s titu tio n s , an
th e p ro s p e rity a n d financial in d e p e n d e n c e of th e e n ti r e N o r th w e s t E m p ire.

‘D irectors o f TlprtInvest ‘B a n co rp o ra tio n ^
Vice-President and Qeneral M anager

M A R S H A L L W . A L W O R T H , Capitalist
H " 1" '
W A R D A M E S , JR ., V-Pres., B a rn es-A m es C om pany-----D uluth, M inn.
S H R E V E M. A R C H E R , P res., A rcher-D aniels
M inneapolis, M inn.
M id la n d C o .,_______ ________________________
E W . B A C K U S, Pres., B ackus-B rooks Com pany. - M inneapolis^ M inn.
W . G. C. B A G L EY , P res., F irst N a tional B a n k ------------ M ason C ity, la .
J U L IU S H . B A R N E S , Grain E x p o rte r
D uluth, M inn.
R E B A R R O N , P res., F irst N a tio n a l B a n k ------------------ M inot, N. D.
JA M E S F. B E L L , P res., General M ills, In c --------- M inneapolis, M inn.
W B. T. B E L T , Pres., N o rth w e stern B ell Telephone Co., O m aha, Neb.
H . G. B LA C K , A sst. Treas., A rm o u r & C om pany------------ H u ro n S. D.
N O R M A N B. B LA C K , P ublisher, Fargo F o r u m ----------- I argo, N. D.
F R E D B O IIE N , P resid en t, M ered ith B u b h sh in g Co.... D es M oines, la .
C L Y D E E. B R E N T O N , P resid en t, Iow a-D es M o in es
N a tio n a l B a n k & T ru st Co----------------------------- Des M oines, la .
W . H . B R E N T O N , V .-P res., Iow a-D es M o in es N ational
B a n k & T ru st Co----- ------------------------------------------- Des M oines, la .
R A L P H B U D D , P res., G reat N o rth e rn R y . C om pany... St. P aul, M inn.
G E O R G E W . B U R T O N , P res., N a tio n a l B a n k
o f L a Crosse
____ ____ ________________ ______ ...Ls, C rosse, YYis.
H M. B U S H N E L L , V .-P res., U nited S ta te s T ru st C o .----- O m aha, Neb.
J tiS E P H C H A P M A N , Pres., D onaldson R e a lty Co. M inneapolis, M inn.
W P C H IN N , G en’l M ur., M in in g D iv., P icklands, M a ther
‘ g, q 0
.... •_____________________ D uluth, M inn.
H O W A R D j r C L A R K , A tto r n e y ______________________ Des M oines, la.
A L B E R T C. C O BB , L a w yer, Cobb, H o ke, B en so n , K rause
& Faegre
.... ..........
..... M inneapolis, M inn.
T. F. C O L E , M in in g
-----------------------------------------M inneapolis, M inn.
E D W A R D C. C O N G D O N , M in in g --------------------------- ------ D uluth, M inn.
G A R D N E R C O W L E S , Pres. R eg ister & T rib u n e Co., Des M oines, la .
J H . C O W N IE , P res., J. H . Cownie Co--------------- D es M oines, la .
J O H N C R O S B Y , D irector, General M ills, In c. ------- M inneapolis, M inn.
G E O R G E D. D A Y T O N , Pres., The D a yto n Co-------M inneapolis, M inn.
J. E. D A V ID S O N , P res., N ebraska P o w er Co-----------------O m aha, Neb.
E D W A R D W . D E C K E R , P res. N o rth w e stern
N atio n a l B a n k __________________________________ M inneapolis, M inn.
R. E. D R IS C O L L , Cashier, F irst N a tio n a l B a n k ---------------- Lead, S. D.
W . A. D U R S T , P res., The M in n eso ta Loan &
T ru st Co.
____ M inneapolis, M inn.
H J. F A H N E S T O C K , Pres., F irst N a tio n a l B a n k, W aterto w n , S. D.
E C F IN K B IN E , P res., F in kb in e L u m b e r Co------------ Des M oines, la .
F H G A N N O N , Pres., F irst N atio n a l B a n k --------------A berdeen, S. D.
C O. F O L L E T T , Pres., S m ith , F o llett & Crowl ------------ F argo, N . D.
G. C. F U L L IN W E ID E R , Pres., N a tio n a l B a n k o f H u ro n , H u ro n , S. D.
F R A N K T. H E F F E L F IN G E R , Pres., F. H . P eavey
g. (
M inneapolis, M inn.
C. L. H E E G A A R D , P res., M andan M ercantile Co., M inneaepolis, M inn.
A L E X H IG H L A N D , Chairm an o f Board, Sto ck Y ards
N ational B a n k _____________________________ S outh St. P aul, M inn.
FO R D E. H O V E Y , Pres., S to c k ya rd s N a tio n a l B a n k
O m aha, Neb.
F R A N K H O R T O N , Pres., The F irst N a tio n a l B a n k ---- W inona, M inn.
F. C. H U B B E L L , Pres.. F. M . H ubbell S o n & Co------ Des M oines, la .
F A. IR IS H , V.-Pres., F irst N atio n a l B a n k & T ru st Co. Fargo, N . D.
F E. K E E L E R , P res., M ason C ity B rick & Tile Co., M ason City, la .
C H A M B E R S K E L L A R , A tto rn e y ...........
Lead, S. D.
F R E D E R IC K E. K E N A S T O N , Capitalist
M inneapolis, M inn.
L O U IS C. K U R T Z , Chairm an o f Board, Iow a-D es
M o in es N ational B a n k & T ru st Co------------- .
Des M oines, la .
R. E. M A C G R EG O R , V .-P res., N o rth w e stern N ational
B a n k _____________________ __ _________________ M inneapolis, M inn.
H . C. M cC O N N O N , M cC onnon & Co__________________W inona, M inn.
W . A. M A H L , Vice-Pres., The F irst N ational B a n k ------W inona, M inn.

H A N F O R D M acN ID E R , Chairm an o f Board, F irst
M inn
N ational B a n k ----------- ----------- ---- W . E. M A G N E R , Pres., C utler-M agner Com pany
™ “T
S E T H M A R S H A L L , Pres., M arshall-W ells Com pany
. D uluth, M m .
F I M A T T S O N , Vice-Pres. and T ru st Officer, M idland
M iiineaj)olis
.N ational B ank & T ru st Co-------C F M IC H E L Pres., L a Crosse R efining C o m pany. La. C rosse, Wis.
C H A R L E S B M IL L S , Pres., M idland N ational B a n k
M in n .
------------- ; ----- ,,
& Trust t o .
O SC A R M IT C H E L L , W ashburn, B ailey & M itchell,
M inn
A tto rn e y s
- ....................-............. -..............................
IS A A C S. M O O R E, P res., F irst A m erican N ational
M in n _


I ^ t ” M O R R IS , V.-Pres., C itizens N ational B a n k -----W aterto w n , S. D.
ED G A R M. M O R SM A N , J R ., A tto rn e y
O m aha, NeD.
R O B E R T P. M O R SM A N , P res., U nited S ta tes N ational
B a n k & T ru st Co------------------------------- -----,------- ---O m aha,
C A P A R K E R V -P re s. F irst N ational B a n k -----------M ason L ity, ia .
LY N N P E A V E Y , P r „ .. S ' c r i . y
M in„.


- “ »”•

SL P R E N T IS S , P res., The N o rth e rn
C orporation-------W inona, M inn.
P H I L I P L. R A Y ’ E x e c u tive V .-P res., F irst and
A m erican N ational B a n k --------------------------- --------------- D u luth, M i .
C A M D E N R A Y B U R N , V.-Pres., N ational B ank o f H u ro n , H u ro n , S>. u .
A M. R O B E R T S O N , Vice-Pres., M inneapolis S treet
R ailw ay Co_____________________________ -----.... -M inneapolis, M inn.
A L B E R T j . R O B E R T S O N , V.-Pres., Iow a-D es
M oines N a t’l B a n k & T ru st Co.
- - - - - - - .D e s M oines, la .
A R T H U R R R O G E R S, P res., R ogers L u m b e r Co., M inneapolis, M inn.
N F R U S S E L L , P res., B ridgem an-R ussell C o m p a n y .. D uluth, M inn.
H E N R Y F. SA L Y A R D S , Pres., E ly, Salyards & Co. . Duluth,. M inn.
A G SAM Pres. L iv e S to ck N ational B a n k
..........Sioux C ity, la .
H . A'. S C A N D R E T T , P res., C. M . & St. P. Rail.

W Z S H A R P P res S e cu rity N ational B a n k -------- Sioux Falls, S. D.
GEO£ H - S P E N C E R , V.-P res., C onsolidated
M in n .
ADAMLG. °T H O M SO N , Pres., A . D . T hom son & Co..
D uluth, M inn,
r C T H O M S O N , V.-Pres. and G en’l M gr., N orthw est B ancorporation ---------------------------------- M inneapolis, M inn.
OI IV E R P. T H O M P S O N , T rustee, The T hom pson
T r u s t . ____________ __ ________________________ - Des M oines, Ia.
H D. T H R A L L , V.-Pres., The M inn. L oan &
T ru st Co-------------------------------------------- --------------- M inneapolis, M inn.
G E O R G E P. T W E E D , Iro n O re------------------- ----D uluth, M inn.
TOHN E. W A G N E R , Treas., C udahy P acking Co.
Chicago, ill.
H B. W A IT E , Pres., H . B. W aite L u m b e r Co.
M inneapolis, M inn.
A. McC. W A S H B U R N , W ashburn, Bailey &
M itchell, A t to r n e y s
, r
Karol’,’ N 1 T)’
E J W E IS E R , Pres., F irst N ational B a n k & T ru st Co., F argo, N . JJ.
A . C. W E IS S , In v e stm e n ts
-------------------------------D uluth, M inn.
G E O R G E W . W E L L E S , P res., K clly-H ow -Thom , M inn
son C om pany---------D uluth, M inn.
D R W E S T , V .-P res., The M in n . L oan and T ru st
___________________M inneapolis, M inn.
D A V ID W IL L I AMS,' Chairman o f Board, F irst and
A m erican N ational B a n k ---------------------------———
u u ,
T H E O D O R E W O L D , V.-P res., N o rth w e stern N a t l
M inneapolis. M inn.
q j C y A T E S , V .-P res., U nited S ta te s N ational B a n k
O m aha, Neb.

J . C. T H O M S O N


Northwest Bancorporation
Federal Reserve Bank of St. Louis



Combined Resources over $360,000,000.00


The Best Investment Your
Bank Can Make
Self education as provided by the American Institute of Banking is the
finest investment that any bank can make for its officers and employes
| N THE thrill of boyhood, youth has
its treasure in a bag1of marbles or
an old pocket knife. The little girl has
her doll. But, as in the splendor of
the noon-day sun we forget the glories
of a golden sunrise, so the marbles,
the pocket knife and the little doll are
laid aside.
The modern Shylock has his pound
of flesh ; but this, by itself, will in time
canker the very soul. The clinking
of coins are but clanking chains that
bind the being in slavery.
The mother has her all in the little
tots that gambol about her feet or nes­
tle upon her bosom; but eventually
even these will grow wings and fly
away from the family nest.
There was an ancient heathen king,
who, mindful of the well-being of his
subjects, contemplated the existence
and the worth of all material things
and concluded that they were of but a
temporary nature. His motto became
“All these shall pass away,” and with
that in mind, he set out to gather to
himself that thing which, above all
other things, would never perish.

By Robert L* Gordon
Banb of Italy
( From address before A . B . A . Convention,
S an Francisco)

plow all his days instead of to spend
his evenings by the light of a hickory
fire, absorbing and mastering the prin­
ciples of grammar and mathematics,
there is little doubt as to his eventful
career. But now, after a boyhood of
mental preparation, he stands as an
example of true Americanism and the
idol of every boy. Education yielded
to Lincoln the highest return, and we
are proud to honor the memory of
him, who by reason of his diligence,
stands enshrined as the greatest Amer­
ican. The purpose of all this educa­
tional agitation, is to see that every
human being gets the same chances
that Lincoln made, and its result is a
more highly developed, a more highly
specialized and a more highly efficient
An investment is the safe deposit of
capital yielding a fair return. In the
absence of these qualities, it is specu­
lation. There is a noticeable lack of
any hazard in the acquisition of knowl­
edge and the returns are sure. One
cannot speculate in education.

needs developing. T hose who have
seen to its culture, as the cultivation of
a fruitful field, are remembered as
men and women who have been worth­
while. We think not of Solomon for
his fabulous wealth, but as the wisest
of men. His money fades away in the
light of his magnificent mind.
The empires estab lish ed by the
Greeks and the Romans fell into utter
decay because the rank and file of
their peoples were not mentally de­
veloped enough to understand, to ap­
preciate, or to cope with an expand­
ing civilization., T h eir fragmentary
parts, now scattered to the four winds,
compose the greatest destructions in
all history. Whereas on the other hand,
if there is any human force that can­
not be withstood, it is the power of the
banded intelligence of an educated
We now find ourselves in an age
A Fine Group
all that has ever gone be­
fore, literally enswarmed within a buz­
This group is composed of represen­
Above the doorway of one of the zing bee-hive of educational activity. tative members of a mighty education­
oldest and p ro u d est col­
al institutions, one of the
leges of the Old South,
world’s greatest universi­
111111111111111i1111111111111111111;1111111111111.......................................................... .............................
graven in etern al stone,
ties, which has issued its
are these w ords "T h e
diploma to thousands ot
Glory of God Is Intelli­
successful men and wom­
gence.” Who is there can
en, and which has upon its
doubt the inspiration of
rolls at the present time
“E d u c a tio n is th e b e st in v e s tm e n t n o t o n ly fo r u s, a s
that little line? L ittle in
the names of over thirtyb a n k e r s, b u t fo r e v er y m e m b e r o f e v e r y b od y th r o u g h o u t th e
size, perhaps, but O so full
six thousand more—the
w o r ld .
T h r o u g h its o p e r a tio n , t h e v e r y w o r ld s th e m s e lv e s
of thought. T herein lies
A m erican In s titu te of
w e r e fo r m e d . W ith in its d e v e lo p m e n t lie s th e h is to r y o f c iv i­
the solution to the problem
Banking. The good result­
liz a tio n s; a n d w h e n th e u ltim a te in a ll th a t is w o r th w h ile
of the heathen king. There­
ing through its operation
h a s b e e n e v e n tu a lly r e a liz e d , it w ill b e fo u n d to h a v e b een
in lies the burden of life.
is inestimable. It has link­
th r o u g h th e u n iv e r s a lly e ffe c tiv e in t e llig e n t a p p lic a tio n o f
T herein is truth, intelli­
the theory of banking
e d u c a tio n .”
gence, knowledge, ed u ca­
with the practice behind
tion, the pathway to the
the desk, and therein lies
gods; the high road to im­
its success, and the success
of any educational institu­
We know but little of
tion or system and the true
whence we came, and equally uncer­ What can be the meaning of all this? meaning of the term “education” as
tain is the spot whither we are bound. What can be its purpose? What will it should be understood. Indications
But we believe this: That if we till our be its results? It means that the great­ point to a time in the not far distant
time while we are here full of good est minds of the day have seen and future, when the banker to occupy an
things, we need worry but little for realized that a progressive people must executive position, will have to be spe­
the future. All men have certain tal­ be an educated people, that a progres­ cially qualified, as the doctor and the
ents, certain things to invest, if you sive individual must be an educated lawyer are today. And this justifiably
please, and money is the least valu­ individual. If Abraham Lincoln, for so in view of his tremendous respon­
able of all of them. The mind of man example, had elected to follow the sibility.
Central Western Banker, October, 1929
Federal Reserve Bank of St. Louis

....................................umilili...... ......................................................................................................................

'11111111111111111111111111111i 111111111111111111111111111





What can be of greater value, then,
to the embryonic banker than a bank­
ing education? In the field of general
business, with its expanding methods
of trade, what can be worth the while
more than a business training. In the
state, with its involved international
relations and its complicated domestic
affairs; in the realm of science, with
the hidden truths of nature rapidly
unfolding themselves to the gaze of
man; in the church, or in the home, or
in any path that a man or a woman
might elect to follow, must be met the
problems of that particular course.
How can they be handled but by minds
educated and hands trained to cope
with just such situations? The individ­
ual best equipped, is the one who suc­
ceeds. E d u catio n again, therefore,
yields the highest return.
The knowledge that is gained thru

Federal Reserve Bank of St. Louis

the development of intellect, is the
sword-in-hand, in the battle of life. It
is as the rays of the rising sun dispell­
ing every gloom and darkness of ig­
norance and incapability, and by the
might of its power, forcing its way
into every nook and cranny of the
problems that might confront u s; and
illuminating, by its magnificent influ­
ence, the heart, the mind and the soul
of man into better manhood. Educa­
tion is the best investment not only for
us, as bankers, but for every member
of every body throughout the world.
Through its operation, the very worlds
themselves were formed. Within its
development, lies the history of civili­
zations ; and when the ultimate in all
that is worth while has been eventual­
ly realized, it will be found to have
been through the universally effective
intelligent application of education.

Joins Northwest Bancorporation
The Stock Yards National Bank of
South St. Paul on September 6, an­
nounced its affiliation with 31 other
leading banks and trust companies in
the Northwest Bancorporation group.
At the same time, E. W. Decker,
President of the Northwest Bancor­
poration and the Northwestern Na­
tional Bank, Minneapolis, announced
the appointment of Alex Highland,
President of the Stock Yards Nation­
al Bank, as Assistant General Manag­
er of the Northwest Bancorporation.
Mr. Highland will become Chairman
of the Board of the Stock Yards Na­
tional Bank, and will be succeeded as
President by F. A. Birch, now Vice
The Stock Yards National Bank has
capital, surplus and undivided profits
of $545,934, deposits of $4,492,015

U nion
of great Significance


H E union of the State Bank of Chicago and The
Forem an N ational Bank will result in an institution

with invested capital of $38,000,000 and resources exceed­
ing- $220,000,000.

United, these two Chicago banks with principles and
¡deals so closely paralleling one another become one of
the w orld’s truly complete banking institutions.
As a correspondent bank, this united institution offers
you even greater facilities, the wide experience, and the
desire to render service which are essential to a successful

State Bank



LaSalle and Monroe Streets

T he F o re m an N a t i o n a l Bank
The Foreman Trust And Savings Bank
La Salle and Washington Streets

Central Western Banker, October, 1929



Stocks in Trust for You
—In a Single Investment

"y^H E N you invest in Corporate Trust
Shares, you participate in the earnings
and increase in values of the common stocks
of 28 of America’s greatest corporations,
listed below. The stocks are held in trust
for your benefit by The Equitable Trust
Company of New York, Trustee, and distri­
butions of earnings are made to you by the
Trustee twice each year—on June 30th and
December 31st. Had Corporate Trust
Shares been in existence during the past 16
years, returns to investors would have aver­
aged 14.6% per year on the average price
of the shares.
Common stocks of these 28 companies un­
derlie Corporate Trust Shares. No substi­
tutions are permitted in the list.
I n d u s tr ia ls

U n ite d S ta te s Steel
A m e ric a n Tobacco
In tern atio n al H arvester
Otis E le v a t o r
du Pont
U n ite d F r u i t
A m e ric a n R a d i a t o r
W o o lw o r t h
In g e r s o ll-R a n d
E astm an Kodak
N a tio n a l B iscu it
S ta n d a r d O ils

S tan d . Oil (N ew J e r s e y )
S tan d. Oil of N ew Y o rk
S tan d . Oil of Ind.
S tan d. Oil of Cal.
T exas C o rp o ra tio n

U t ilit ie s an d
Q u a si-U tilitie s

A m e ric a n Tel. & Tel.
W e s t e r n U nion
W e s t in g h o u s e Elec.
Con. Gas. of New Y o rk
G en eral E le c tric

R a ilr o a d s

N ew Y o rk C e n tra l
Illinois C e n tra l
U nion Pacific
S o u th e r n Pacific
L o uisville & N ash v ille
P e n n s y lv a n ia
A tch ison

I n v e s tm e n t D e a le r s d e s irin g to p a rt ic i p a te in th e d i s t r i b u ­
tion of C o r p o r a t e T r u s t S h a re s sh o u ld c o m m u n ic a te w ith
e it h e r of th e u n d e rs ig n e d .

120 South La Salle Street, CHICAGO

U nion N atio n a l B a n k Bldg., F R E M O N T , N E B .

Central Western Banker, October, 1929
Federal Reserve Bank of St. Louis

and resources of $5,210,920. Banks
and trust companies affiliated in the
Northwest Bancorporation have com­
bined deposits of $234,626,732 and to­
tal resources of $270,983,142.
The Stock Yards National Bank of
South St. Paul is the third live stock
bank to unite with the Northwest Banco rp o ratio n . In August, the Stock
Yards National Bank and the South
Omaha Savings Bank became affiliated
with the Bancorporation, brin g in g
with them the Cattle Feeders Loan
Company, Inc., a company engaged in
financing the live stock industry and
doing a business of approximately $6,000,000 annually.
According to a statement made by
President Highland, the Stock Yards
National Bank of South St. Paul, one
of the pioneer live stock banks in the
Northwest, was organized in 1897 for
the purpose of financing the live stock
business centering at the South St.
Paul market and caring for the finan­
cial requirements of the trade territory
tributary to it. “As this community has
grown, its financial needs have in­
creased, so that, in becoming affiliated
with other important banks which are
sympathetic to the needs of the live
stock and allied industries, we greatly
increase our capacity for service to
this community.”
Bankers Brokerage Company
Under New Management
The Bankers Brokerage Company
of Kansas City, known for many years
as a clearing house and exchange for
the buying and selling of banks, has
recently come under the management
of O. E. Grecian, who succeeds L. B.
McBride in that capacity.
Mr. Grecian, who is also secretary
and treasurer of the Walker Invest­
ment Company, has moved the Bank­
ers Brokerage Company offices to 210
West Eighth Street, Kansas City.
An old countryman had been look­
ing around a logging camp for some
time without finding work. Finally one
of the foremen put him to work saw­
ing odd pieces into stove lengths.
The hazy' circle at the outer edge of
the circular saw held such fascination
for him that he could no longer resist
the temptation to place his finger near
the rim. The finger came off.
As he stook gaping at the bleeding
stum p, the forem an w alked up.
“What’s the trouble, Jim, something
“Darned if I know,” came the an­
swer. “You see I was just putting my
finger', over the saw like this. . . . My
Gawd, there’s another one gone!”


value of the de­
I T IS an interest­
bentures and pre­
ing sign of the
ferred stocks.
times that bankers
Taking a more
should be interest­
recent period, from
ed in c o m m o n
1921 to 1926, and
stocks from an in­
not an extended
vestment s t a n d ­
period which in­
point. The writer
cludes a period of
has no doubt that
falling prices, the
a few years ago
results are that in
m ost b a n k e rs
the ordinary shares there is an appre­
thought that it was impossible to con­
By Waddill Catdiings
ciation in the same companies of 12
sider common stocks from a strictly
per cent, that is, in the ordinary shares,
Goldman, Sachs and Co.
investment standpoint.
and in the debenture shares a depre­
The writer well remembers that 11
New Y o r\ City
ciation of 3R> per cent.
years ago when he went into the bank­
An investigation made by D. C.
ing business, his firm, which had at actual fact, there is a considerable rec­
that time been issuing common stocks ord today of satisfactory results from Rose of the investment experience in
for a period of 11 years, did not feel intelligent investment in common bonds and stocks of the twenty-five
that it was appropriate for them, as stocks. A calculation made of the largest fire insurance companies indi­
investment bankers, to advertise issues situation at Harvard University show cates the same sort of experience right
along of much greater in­
of common stocks. The
come from stocks natural­
firm would advertise is­
ly than from bonds, and
sues of preferred stocks,
.... ........
an average income over
and in connection with
the nineteen years of a
the issue, sell common
little over 5 per cent as
stocks, but the common
against an average of W/2
“O ne p o in t to be fo r c ib ly e m p h a siz e d is th a t in a n y in ­
stocks were sold without
per cent in bonds, and in
v e s tm e n t p r o g r a m in com m on sto c k s , it is e x tr e m e ly im p o r ta n t
public announcement or
every year the average
to d iv e r s ify th e in v e s tm e n t a n d to fo r tify o n e ’s ju d g m e n t w ith
without advertisement.
income for all the twentyr eg a r d to p a r tic u la r c o m p a n ie s b y a b road a v e r a g e .”
It has only been within
five companies was great­
the last few years that the
er from stocks than from
banking firm with which
bonds, and in every one
the writer is associated,
of the twenty-five compa­
which has been issuing
nineteen years there was
common stock probably as long as any
other firm in Wall Street, has been its report, common stocks of a cost of a greater total net gain from stocks
willing to advertise the sale of com­ $13,000,000 and a market value of than from bonds.
In grouping the companies, there is
mon stocks, and of course, as bank­ $23,000,000.
this interesting comparison, that the
ers are aware, it has only been with­
A Study of Results
first five companies in results had an
in the last year or two that very large
A study made of the results of in­ average investment in common stocks
agencies of distribution of securities
have been willing to issue common vestment in ordinary shares of each of out of their total investment of 35 per
stock. At the present time, it is grow­ the six largest English companies in cent; the second five had an average
ing, and it may be expected that be­ nine different groups, dividend-pay­ investment of 27 per cent; the third
fore long most houses will issue com­ ing stocks, and groups including tex­ five had an average investment of 19
tiles, railways, public utilities, and so per cent; the fourth five had an aver­
mon stocks as well as issue bonds.
The public itself has indicated an in­ forth, in comparison with an equal age investment of 13 per cent; and the
creasing interest in common stocks. It amount invested in the preferred or last five had an average investment of
is quite apparent that the general pub­ debenture stocks of the same compa­ 10 per cent.
The writer dislikes to refer to the
lic today is taking a more intelligent nies, indicates that over a period from
interest in common stocks, is buying 1912 to 1926 there was in each year a experience of his own firm with re­
common stocks with more discrimina­ very substantially greater income, the gard to common stocks, but bankers
tion, and is buying stocks more for figures being $]/> to 6 per cent in are interested in actual figures, and it
investment than at any time in the comparison with 3^6 to 4 per cent, is difficult to get figures outside of
with an average annual appreciation actual experience. These results are
Recent studies, and they are very of 3 1/5 per cent as against an aver­ given with no thought that they are
numerous, indicate that as a matter of age annual decrease in the capital different from the results of other
Federal Reserve Bank of St. Louis

Common Stocks
from an



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Central Western Banker, October, 1929

houses. It may very well be that other
houses have had better experience
than the writer’s has had. But what
our own actual experience has been
can be told.
A 22-Ycar Stretch
What has actually happened with
regard to the common stocks which
have been issued over a period of
22 years by our firm? During that
time, we have issued forty-nine com­
mon stocks. If a person had invested
10,000 in each one of those issues, he
would have obviously had a total in­
vestment of $490,000. The average
life of that investment over that per­
iod is a little over 7j/j years. The
holder would have had an average in­
come of over 10 per cent in cash and

an average market increase in the
value of securities of 42 per cent.
That is the average of 49 companies,
and this interesting observation may
be made, that the issue which was
probably the most successful on the
day of issue, a security which was is­
sued at $60 a share and sold on the
day of issue at $105, has turned out
the poorest. That indicates how diffi­
cult it is to judge individual common
stocks and how important it is in any
investment program in common stocks
to get a broad average so that the
losses in some stocks are made up in
the appreciation of other stocks.
It is the writer’s opinion, from this
experience, that it will be found al­
most impossible to reach a sound judg­


...w h e n you w an t
to b r o a d e n y o u r
in v e s tm e n t v iew
The ramifications of modern investment are
so extensive these days that you cannot hope
to keep always abreast of changing conditions.
Nor do you have to. Just put your investment
inquiries to The National City Company’s
nearest office,—one of our experienced ser­
vice men will be glad to talk with you. Our
116 years of financial experience, coupled
with world-wide investment connections, give
us an investment viewpoint which you will
find valuable in broadening your own.

The N ational City Com pany
National City Bank Building, New York

Offices in more than


50 leading cities throughout the world


Central Western Banker, October, 1929
Federal Reserve Bank of St. Louis



ment with regard to particular stocks,
and that, subject any industrial com­
pany to any test that you will today
and there are changes which may oc­
cur in business; there are changes
which may occur in management;
there are all manner of vicissitudes to
which business is subject, that will
make it almost impossible to forecast
the future of any one company. It
is only by taking a number of compa­
nies and averaging the risk, that one
can be at all sure as to the future
One point to be emphasized forcibly
is that in any investment program in
Common stocks, it is extremely im­
portant to diversify the investment
and to fortify one’s judgment with re­
gard to particular companies by a
broad average.
Booklet of Bank Management
A booklet on “Secondary Reserves
and Security Buying” has just been
issued by the Clearinghouse Section of
the American Bankers Association. It
is the third in a series of publications
on commercial bank management, the
earlier booklets treating of “Loan Ad­
ministration Policies” and “Profit and
Loss Operations.”
In the foreword Fred W. Ellsworth,
Chairman of the Clearinghouse Sec­
tion’s Committee on secondary re­
serves and security buying, says that
“beyond question a considerable per­
centage of bank failures can be credit­
ed to the injudicious selection of un­
liquid assets that become frozen at the
very moment when they are most vit­
ally needed.”
The booklet takes up the general
subject under the following topics : es­
tablishing a secondary reserve—fac­
tors affecting the amount, composition
of secondary reserve account, call
money, commercial paper and bank­
ers’ acceptances, the advantage of
bankers’ acceptances, United States
Government bonds in the secondary
reserves, other bonds in the secondary
reserve, state and municipal bonds,
railroad bonds, equipment trust cer­
tificates, investment trust debentures,
industrial bonds, liquidity and quality
of secondary reserve assets generally,
maturity, diversification in assets of
secondary reserve, investment ac­
count and capital structure, time de­
posits, investment unit and capital
At Regular Rates
Prisoner: “ ’Ere, wot’s this bill for
Jailor: “We’ve just found out that
you’re the wrong guy, and that’s for a
couple o’ months board and lodging.”


W hat Is An Investment Trust?
By Dr* Paul M<> Atkins
Engineer, Economist,
Amer-Emerich & Co.
G en er a l m a n a g e m e n t, fixed an d
se m i-fix e d in v e s tm e n t tr u sts , h o ld ­
in g , fin a n c e a n d tr a d in g c o m p a n ie s,
a r e a ll fr e q u e n tly r e fe r r e d to a s
“ in v e s tm e n t t r u s t s ,” m u c h to th e
c o n fu s io n o f a ll in te r e s te d .
T h is
a r tic le d e fin e s c o n c is e ly th e m a jo r
c h a r a c te r is tic s o f e a c h a n d th e d if ­
fe r e n c e s
e x is tin g
am ong
th e m ,
th u s
a n s w e r in g
th e
q u e s tio n ,
“W h a t is a n in v e s tm e n t t r u s t ? ”

T 'H E MOST overworked expression
A in the financial world during recent
months seems to be “investment trust.”
It has become quite common to find
that any organization whose major
business is owning securities is refer­
red to as an investment trust. Even
holding companies of a type w ith
which the public has long been famil­
iar are now frequently dubbed “invest­
ment trusts.” All too often even the
experienced investor is misled and
buys a security of a certain type of
“investment trust” when he thinks he
is buying another.
The term “investment trust” was in­
troduced into our financial vocabulary
from Great Britain, where it has been
applied to a certain type of institution
for many years. It is this same type
which is now known in this country by
the title “general management invest­
ment trust,” to distinguish it from the
“fixed” and “semi-fixed investment
trusts” which have also been develop­
ed in the United States. The outstand­
ing characteristics of a general man­
agement investment trust are: a port­
folio made up of a wide variety of se­
curities, both stocks and bonds, civil as
well as corporate obligations, foreign
as well as domestic, thus providing the
security which a broad diversification
of securities makes possible; a contin­
uous management of this portfolio by
men who are thoroughly trained, ex­
perienced, internationally minded, who
are possessed of many contacts, both
at home and abroad, and wdio are pro­
vided with a constant flow of economic
and business data as a basis for their
decisions in regard to changes in the
portfolio of the trust. It is a cardinal
principle of well managed investment
trusts of this type never to buy on
margin or sell short.
I f properly administered, under nor­
mal conditions their current income
from interest and dividends on their
Federal Reserve Bank of St. Louis

investments is adequate at least to pay
current operating expenses and inter­
est on debentures and dividends on
preferred stock of the investment trust.
Securities purchased by such invest­
ment trusts are usually bought because
their prices are low as compared with
the prices of other securities at the
same time. They are usually held until
their price is relatively high and funds
so invested are required to purchase
other securities whose prices are rela­
tively low. In brief, the general man­


agement investment trust is an invest­
ment and not a speculative institution.
It profits and plans to profit by the in­
crease in the value of its holdings over
a period of time, but any trading prof­
it it may reap is a secondary consider­
ation. In this respect it differs funda­
mentally from the financial trading
company, which is organized for this
Differ in Operation
The organization of both fixed and
semi-fixed investm ent trusts is the

HE recent All State Air Tour is but another
demonstration to our people of the commer­

cial value and practicability of the airplane.
Because of the growth and stability of Mid

West Aviation Corporation, our aviation securi­
ties department believe the securities of this
company are outstanding from an investment

Inquiries Concerning Aviation Securities
Promptly Anszvered

318 South N ineteenth S treet


Central Western Banker, October, 1929

same; they differ slightly in current
operation. In both cases a group of
stocks (and sometimes other securi­
ties) are purchased and certificates of
beneficial interest of one kind or an­
other are issued against them. In some
instances the stocks are diversified and
in other instances they include only
stocks of companies in a single indus­
try. In the case of the fixed trust, once
the portfolio is made there is no pos­
sibility of any change, regardless of
any weakening in the position of any
security held. In order to remedy this
difficulty in some measure, in the case
of the semi-fixed investment trust cer­
tain substitutions from a limited list of
eligible securities are permitted if they
appear to be desirable. In neither case
is there any continuous management
of the portfolio as in the case of the
general management investment trust,
and hence this type of trust does not
have the means for avoiding loss nor
of gaining profits which are possessed
by the general management investment
trust. The fixed or practically fixed
portfolio and the absence of continu¿MIIIIIIIIIIIIIIIIIIIIIIIIIIiiiiiiiiiiiiiiiim ii ,







ous management on the part of the
fixed or semi-fixed investment trusts
serve to mark them off sharply from
the general management investment
trust, which possesses both of these
The holding company, which is per­
haps best exemplified by numerous
cases in the public utility field and cer­
tain new corporations in the financial
field, is also confused with investment
trusts of the type already described,
and particularly with the general man­
agement investment trust. The simil­
arities, however, are merely superfici­
al. Holding companies are generally
organized to manage, as well as fin­
ance, the subsidiaries whose securities
they hold. In this respect they are en­
tirely different from properly organiz­
ed investment trusts, which take no
part whatever in the management of
any corporations whose securities they
may happen to own. The holding com­
pany usually owns a controlling, if not
a majority interest in its subsidiaries,
as otherwise it would not be in a posi­
tion to dominate the policies and meth­

,,,,,,J,,,,,,1,,,|m m|||||||m |||m ||m ||||||||||||||||||||||||||iM

Stable Securities
Sincere Service
Increasing Clientele

R ufus E . L e e & C o m pa n y
Investmetit Benikers
1116-1122 City N ational Bank Bldg.

- «1111111111111111111111111111111i111111111i1111(111111111111111111111111111111111111111111■11111111111111111111111111111111,11111111J11,11,111,, I,I,IJI,,, I,,,,,, .,||||||||||111111111h h iiiiiii , i nui Iiiiiiiiiiiiiiiii hi iiiiiiiiiiiii 11111111111v 111111111111111111111111111111111111111,, =


ROBERT S. STRAUSS & CO. Cumulative


T h e r e g u l a r q u a r t e r l y d iv id end of 1 % % h a s been d ecla red on
th e P r e f e r r e d s h a r e s of R o b e r t S. S tr a u s s & Co., a n Illinois c o rp o r a ­
tion w ith p rin cip al office in Chicago.
T he q u a r t e r l y d iv id end of 1 % % is pay ab le O ctober 1, 1929 to
S to c k h o ld e rs of re c o rd a t th e close of b u sin ess on S e p te m b e r 2 0, 19 29.
T he t r a n s f e r books of th e c o m p a n y will be closed fr o m S e p te m b e r
2 0 th to O cto b er 1st fo r th e m a i li n g of dividends.
Chicago, Illinois.
J. H. LASRY, S ecretary .

Central Western Banker, October, 1929
Federal Reserve Bank of St. Louis

ods of the latter. The well administer­
ed general management investm ent
trust, on the other hand, owns but a
very small part of the securities of any
company. Whereas the portfolio of the
holding company is always in at least
a semi-frozen condition, the portfolio
of the general management investment
trust, if its affairs have been properly
handled, is always in a highly liquid
position. Still another difference may
be noted in the fact that the holding
company usually limits its holdings to
a single industry, whereas most invest­
ment trusts have wide diversification
of holdings.
Marked Differences
When the finance company is con­
sidered, it may be noted that this type
of corporation resembles som ew hat
both the holding company and the in­
vestment trust. A more detailed an­
alysis reveals that there are marked
differences. The major object of the
finance company is to finance other
companies which are not in a position
to obtain long term funds directly
from the public or favorable terms.
There are often excellent reasons for
this situation. The company financed
may be one in a sound position but un­
known to the public; it may be new
and still in the promotional stage and
hence unseasoned; it may be one which
has been taken over by a new manage­
ment which gives prospects of solving
its problems. It practically always in­
volves participation and frequently
complete control by the finance com­
pany in those corporations in which it
is interested. In this respect it resem­
bles the holding company but differs
from the general management invest­
ment trust. On the other hand, it dif­
fers from the holding company be­
cause it may be interested at any mo­
ment in companies engaged in varying
industries, and further, it rarely in­
tends to retain its interests in these
concerns indefinitely, but to dispose of
them as soon as they can be placed in
a strong position and their securities
marketed to advantage. Of course,
this means that their portfolios are
likely, for long periods, to be in a froz­
en position. This serves still further to
differentiate them from the general
management investment trust.
The financial trading corporation is
the type of “investment trust.” as that
term is loosely applied, which has giv­
en a basis for the phrase so frequently
employed, that “investment trusts are
only blind pools.” The trading com­
pany, when possessed of an equitable
financial organization and honestly and
capably managed, is not deserving of
the opprobrium which is frequently
heaped upon it. The trading company

is avowedly organized to buy and sell
securities in order to make a profit by
these market operations. It can buy on
margin and sell short — two things
which no sound investment trust ever
does. When run by honest men who
know their business, it probably offers
the person who wishes to speculate in
the securities markets a much greater
opportunity for profit than he would
have if he operated alone. Sometimes
its portfolio includes a wide variety of
securities, but more frequently its
manager prefers, and properly so, to
operate in only a restricted list at any
one time. It is obvious that a strictly
trading corporation is a speculative in­
stitution and not an investment insti­
tution like the general management in­
vestment trust. The principles upon
which these two types of company op­
erate are entirely different.
All of these several classes of cor­
poration, when free from fraud, have
a perfectly legitimate and desirable
function to perform. The in v esto r,
however, should recognize the differ­
ences in objects sought, methods em­
ployed and investment position of their
securities. He should particularly be
careful to ascertain that he is buying
that type of security which he desires
when he purchases investment trust
securities. It should be evident, also
from the above discussion, that prob­
ably more than any of the others, the
true general management investment
trust combines to an unusual extent
those characteristics which are desired
by most investors, whether their hold­
ings are large or small, whether they
are conservative or progressive ; name­
ly, a high degree of safety, combined
with reasonable opportunity for ap­
^ A S S O C IA T IO N celebrated its
tenth anniversary and the twentieth
anniversary of the founding of the
Morris Plan of Industrial Banking at
White Sulphur Springs, West Virgin­
ia, on September 23, 24 and 25.
\j\/4 T H IN the last decade European
* V and South American mortgage
banks have placed considerably more
than $200,000,000 of their bonds with
American investors, a special study of
the mortgage banking systems abroad
just issued by the Institute of Inter­
national Finance reveals.
Candid Opinion
One Guy (in trouble) : Tell all
you know. It won’t take long.
Second Guy (ditto) : I ’ll tell all
we both know. It won’t take any
Federal Reserve Bank of St. Louis

'T 'H E O U T S T A N D IN G event in
A Chicago financial circles last month
was the announcement by the Conti­
nental Illinois banking group of the es­
tablishing of the Continental Chicago
Corporation, an investment trust with
an authorized capitalization of $500,000,000. Public offering of an initial
issue of 750,000 shares of no par pre­
ferred and 750,000 shares of no par
common stock was made at $68.50 a
unit. The issue was immediately over­
subscribed. An additional one million
shares of the common stock were pur­

chased by the C o n tinental Illinois
Company, giving the Corporation a
paid-in capital of $63,750,000. The
stock was listed on the Chicago Stock
Exchange in units of one share pre­
ferred and one share common.
Arthur Reynolds, chairman of the
Continental Illinois Bank and Trust
Company, is president of the Corpora­
tion. James R. Leavell, executive vice
president of the Continental Illinois
Company, is vice president and Abner
J. Stilwell, vice president of the Bank,
is secretary and treasurer.
It is the belief of Arthur Reynolds,
president of the Corporation, that an
investment trust established under

New Additions to American
Founders Group
During the past few weeks the public has been
offered stock in three companies that are now included
in the American Founders Group.
Each of these three companies have splendid op­
portunities for growth in the near future under the
guidance and direction of the American Founders Cor­
Upon request we will be pleased to furnish details on

210 Farnam Building,
Omaha, Nebraska
Ja. 5065
Central Western Banker, October, 1929

banking auspices will find a large field
of profit in furnishing capital and
management to business and indus­
tries which are either in the early
stages of development or hold unreal­
ized prospects. “We know from ex­
perience,” he said, “that there is a real
need for this additional banking serv­
“In the rapid march of events which
has brought greater expansion during
the past three years than in the pre­
vious forty,” Mr. Reynolds continued,
“the Continental Illinois, along with
the other outstanding banking institu­
tions, has breasted or anticipated the
tide of developments. The new Cor­
poration will do what neither the Bank
nor its investment subsidiary has been





in a position to do and will, therefore,
greatly augment the existing facilities
of the Continental Illinois banking or­
In denial of rumors that a primary
purpose of the Continental Chicago
Corporation would be to acquire stock
holdings and control of banking or­
ganizations, Mr. Reynolds was empha­
tic. “The Continental Illinois does not
contemplate an experiment in chain
banking” was his reply to his sugges­
tion. “We propose independent oper­
ation as a unit, with development of
that unit to its fullest possibility.”
Some of Chicago’s most prominent
men are to guide the destinies of the
Continental Chicago Corporation. In
addition to Mr. Reynolds, directors of



A N ational Standard
Short Term Investm ent

G M A C obligations have been purchased by
a clientele of nearly 8,000 banks, insurance
companies, institutions and individuals, the
country oven Their rating, as a national stand'
ard for short term investment, reflects estab'
lished public confidence in G M A C prestige.
offered at current discount rates








o r p o r a t io n



Executive Office - B roadway a t 57 t h S t r e e t



A rthur R eynolds

pany, Eugene M. Stevens, president
Continental Illinois Bank and Trust
Company; Edward F. Swift, vice pres­
ident Swift & Company; and F. Edson White, president Armour & Com­
Transfer Modern Woodmen Suit
The suit began at Beatrice by Mod­
ern Woodmen insurgents has been
transferred to the federal court at Lin­
coln, Neb., for trial,‘subject to a de­
mand for a remand by the plaintiffs,
who have expressed a desire to have
the state courts retain jurisdiction.
Head Consul Talbot and eight mem­
bers of the national directorate are
made defendants, and until further ac­
tion of the court they are restrained
from putting into effect the new rate
schedule, from soliciting older mem­
bers to accept its provisions, from so­
liciting surrender of benefit certificates
for cash and from dividing the mem­
bership into two groups.

Jffew T o r\C ity

$ 6 6 ,0 0 0 ,0 0 0

Central Western Banker, October, 1929
Federal Reserve Bank of St. Louis


the trust are : Bernard A. Eckhart,
president B. A. Eckhart Milling Co. ;
Stanley Field, president Field Mu­
seum of Natural History; Charles F.
Glore of Field, Glore & Co. ; D. R.
McLennan, president Marsh & Mc­
Lennan, Inc. ; George M. Reynolds,
chairman executive committee Conti­
nental Illinois Bank and Trust Com-


Becomes Cashier
W. S. Gibbon has purchased the in­
terest of E. L. Bacon in the Peoples
State Bank, Baldwin City, Kansas, and
taken over the cashiership of that
bank. Mr. Gibbon was formerly cash­
ier of the Jarbalo State Bank.



Insurance Stocks Becoming
Popular Investments
JNSURANCE stocks are gaining an
increasingly wide distribution, ac­
cording to Charles D. Robbins, head
of the New York investment house of
Charles D. Robbins & Company. Mr.
Robbins’ statement is of particular in­
terest because of the fact that his firm
headed the syndicate which recently
underwrote a $3,000,000 stock issue
for the Federal Surety Company of
Davenport—one of the middle west’s
largest insurance institutions of which
W. L. Taylor is president. Subse­
quently, Mr. Robbins became chair­
man of the finance committee of the
Federal Surety Company.
“For many years,” said Mr. Rob­
bins, “most insurance stocks were held
in the East by a comparatively small
group of investors who were familiar
with the profit making possibilities of
such a stock, especially when held for
a number of years. Two factors, how­
ever, have operated to change this
situation and make possible wider dis­
tribution: 1. The quasi-public nature
of the insurance business combined
with the desire of insurance institu­
tions to have their agents and the in­
suring public become interested in
their business; and secondly, because
the general investing public has dis­
covered the attractiveness of insurance
stock investment and have decided to
own some of it. Barron’s—the na­
tional financial weekly,” said Mr. Rob­
bins, “recently published some very
significant figures with regard to the
past, present and future performance
of such stocks.” Barron’s said in p art:
Paralleling the more wide-spread
ownership of equities in the United
States in the last few years has been
the greater diffusion of ownership of
insurance stocks. It is only within
comparatively recent times that insur­
ance shares have attracted the atten­
tion of the general investing public,
although shrewd wealthy investors
had put them away in strong boxes, as
inventories or estates in recent years
have shown. But insurance stocks
had no listed market, and were selling
at high prices, with the result that the
so-called average investor took little
interest in them.
“This situation has been greatly al­
tered in the past few years. Reduc-
Federal Reserve Bank of St. Louis

A Statement by

of danger in buying the securities of
insurance companies. The price of
By Charles B. Robbins such
securities, like that of other
President, Charles D. Robbins & Company, stocks, is based primarily on earnings
Investment Bankers, New York
record and earnings possibilities.
While a well managed investment
Chairman, Finance Committee, Federal
Surety Company of Davenport
company can show a profit even in a
declining stock market through se­
lective investment, the rate of returns
tions in par value and stock splitups is naturally higher in a bull market,
have brought the quotations down to such as we have witnessed in the past
a price level which has resulted in six or seven years, than in a declining
substantial buying by the investing or irregular market. And the ratio of
public. Notable betterment of earn­ sources to capital multiplies this ef­
ings, combined with this increased de­ fect.
mand, has caused a tremendous ap­
“Of course, this is not the condi­
preciation in the quoted value of in­ tion of all companies. Many states
surance stocks, amounting in some limit the classes of securities which
cases to over 1,000 per cent in ten insurance companies may hold. Es­
pecially is this true of life insurance
Really an Investment Company
companies, which in many cases are
“Having graduated its premiums to limited in their investments to mort­
cover its losses, the modern insurance gages, bonds, and a restricted amount
company makes its largest profits of high grade preferred stock. It is
from wise investment of its funds. It for this reason that greater profits on
is thus in effect, an investment com­ investments have generally been
pany, operating largely on borrowed shown by the fire than by the life in­
money in the form of premiums pre­ surance companies in the past few
paid which must eventually be paid years. And for the same reason, the
out in large part on losses which will end of the bull market is likely to cut
the earnings of life insurance compa­
“And this borrowed money costs nies much less than those of fire com­
the companies nothing. Only a few panies.
“Even within the legal limits, there
years ago, most insurance companies
considerable differences in the in­
showed a loss on their underwriting
activities, which had to be made up vestment portfolios of insurance com­
out of income on investments before panies. Many companies hold a large
a profit could be shown. But more amount of stock in other insurance
and more accurate prediction of losses enterprises, and this in many cases,
and more and more careful selection multiplies the effect of factors bearing
of risks have now placed most of the on the insurance business, either fav­
stronger insurance companies in a orably or unfavorably. Bank stocks
position where they show a substantial are another favorite form of invest­
profit on underwriting operations, in ment, and these have shown a tend­
some cases more than sufficient to ency to appreciate steadily over a long
period, regardless of stock market
cover dividend requirements.
“As investing companies, the lead­ movements. Mortgages, held in greater
ing units in the insurance field have or less proportion by all insurance
shared the huge profits which have companies, are a fairly stable course
been common to the better managed of revenue, fluctuating little either in
corporations of this class in recent value or yield. And bonds, held usu­
years. Since they are working on ally in greater amount by life than by
borrowed capital which in most cases fire casualty companies, frequently
cost them nothing, a comparatively appreciate in price with the decline in
small increase in the rate of return money rates which has usually fol­
on money invested means a large in­ lowed the end of a bull movement.
Some Notable Performances
crease in net income of the company.
“This very fact suggests an element
“Because of the more liberal proCentral Western Banker, October, 1929

visions of their charters, which permit
much greater freedom in choice of
securities for investment partfolios,
tire insurance companies have been the

outstanding performers. Earnings of
the most profitable of these companies
have been spectacular. Globe & Rut­
gers Insurance Co., for example, was

The Time, The Contract
A n d The M an
We might aid you in bringing
about the proper combination
of these three elements.



L if e In s u r a n c e C o m p a n y
Omaha, Nebraska
H . E . W O R R E L L , S ec.-T reas.


of Lincoln, Nebraska
B. It. BAYS, P r e s id e n t

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

T o ta l A d m itte d A s se ts

S ta n d a r d B u s in e s s in F o r c e

$ 1 2 5 ,0 8 2 . 7 :;

$ 1 4 0 ,7 3 7 .3 6



$767, 380.73

D ec. 31, 1923

D ec. 3 1 , 1 9 2 4

Dec. 31, 1925

Dec. 31, 1926

Dec. 31,1927

$ 1 9 6 ,0 0 0

$ 3 ,1 4 2 ,5 0 0




$1,013,048.00 Dec. 31,1928 $15,506,000
Central Western Banker, October, 1929
Federal Reserve Bank of St. Louis

selling in January, 1919, for $1,000 a
share. Following a 400 per cent stock
dividend in 1922 and a 100 per cent
stock dividend in 1928, the purchaser
of one share in 1919 would have at
present ten shares on which he would
have received, in the period to May 1,
1929, dividends totalling $1,324, and
which, at the receent price of $1,470
has a market value of $14,700. Prof­
its, including dividends, have thus
averaged 143 per cent a year. North
River Insurance Co., if one had exer­
cised rights granted by the company,
would have earned for the investor al­
most 170 per cent annually on the to­
tal capital invested, over the 1919-28
period. United States Fire Insur­
ance, Providence, Washington, Han­
over, and Connecticut General Insur­
ance are other prominent examples.
In January, 1919, the purchase of
one share of 36 insurance stocks
would have involved an investment of
$10,276. Over the following ten years,
an additional investment of $5,692
would have been required to take ad­
vantage of “rights” making a total in­
vestment of $15,968. On May 20,
1929, after receiving dividends total­
ling $9,326, the investor would have
had securities with a market value of
$836,478, a profit, including dividends,
of $76,386 or at the rate of about
46Jd per cent annually.
The Future of Insurance
“It has been figured that the averagee growth of all branches of insur­
ance in the United States, measured
by total assets, over the past 25 years,
has been 28 per cent a year, over 12
times the rate of growth of popula­
tion. With only 50 per cent of pos­
sible property values insured against
loss by fire, only a small fraction of
potential life insurance written, and
constantly increasing fields for cas­
ualty insurance, it seems likely that the
insurance business will continue to
grow faster than the population, and
that this growth will be reflected in
the price of insurance stocks.
Snappy Comeback
A chorus girl, deliciously pretty but
decidedly low-brow, somehow found
herself at a very select party given by
a famous society woman.
The girl, lonely and uncomfortable
as a fish out of water, was leaning
against the wall, framed against the
dark oak, when the hostess took pity
on her.
“My dear,” she said kindly, “you
look just like an old Rembrandt.”
“Well,” retorted the damsel, sharp­
ly, “you don’t look too darned snappy


Condensed Financial Statement




As of March 31, 1929
A s submitted to and approved by the United States Treasury Department.



Capital Stock..............................$1,290,000.00
Cash ............................................. $1,232,154.42
Call Loans............ .............
- 100,000.00
Reserves :
Stocks and Bonds.... .................. 1,295,253.90
For losses................................. 404,098.30
Real Estate Mortgage Loans.......................... 701,118.25
For Unearned Premiums....... 729,572.52
Interest & Dividends Due and
For Commissions,Taxes, etc.
Accrued ...........
Other Liabilities......................... 146,568.30
Due from other Companies.............................. 119,472.15
Surplus, net................................ 1,712,459.67
Due from Agents....................... 596,850.98
Miscellaneous Assets...... ...........
Total Net Admitted Assets....... $4,374,283.91

Total Liabilities...... .....................$4,374,283.91




Vice President

W . L. T A Y L O R

T H E O . G. L O R E N Z E N



G EO . E . D E C K E R

C H A R L E S D . R O B B IN S

Vice President

Chairman Finance Committee


W . H. STU A R T

Vice President

Asst. General Manager

M. L A N D A U E R

H . A . B IS H O P

D irecto r

W e s te rn U nion T e le g ra p h
B rid g e p o rt, Conn.

Com pany,

M e m b e r of th e firm of S im o n
D a v en p o rt, Io w a

C. W . B O R G


F o u n d e r of B o rg & B eck, (n o w B o rg W a r n e r ),
D av en p o rt, Io w a
M . II.


B a n k e r; P resid e n t, M ississippi V alley F a ir & E x p o s i­
tio n ; E x - P r e s id e n t Io w a B a n k e rs A sso c ia tio n
D a v en p o rt, Io w a

A ttorney,





C ity


P r e s id e n t th e R e g is te r L ife In s u ra n c e C o m p an y ;
D ire c to r of th e A m e ric a n C o m m ercial & S av in g s B an k ,
D av en p o rt, Io w a



C ap italist an d A tto rn e y a t Law , D av en p o rt, Io w a

V an d erP o el,



& W ebb,


I n c .,


Y ork

C ity

D . R O B B IN S

C h a r l e s D. R o b b i n s & Co., M e m b e r s o f N e w Y o r k
S to ck E x c h a n g e , N ew Y o rk C ity


Y ork


& Landauer

D irector, A m e ric a n C o m m ercial an d S a v in g s B an k ,
B e t t e n d o r f C o .; D i r e c t o r a n d P r e s i d e n t o f t h e C o l o ­
ra d o U ta h C oal C om pany, D a v en p o rt, Io w a
W . I .. T A Y L O R

P resid e n t, F e d e ra l S crety C o m p an y ; D ire c to r a n d
P r e s i d e n t S t a n d a r d F e d e r a l F i r e I n s u r a n c e Co.



P . W . C h a p m a n & Co., I n c .
N e w Y o r k C ity, a n d C h ic a g o

T h r o c k m o r t o n & C o m p a n y , B a n k e rs , N e w Y o rk C ity

H . C. A H L

A c tiv e V ice P r e s id e n t, A m e ric a n C o m m e rc ia l a n d S a v ­
in g s B a n k ; D irector, R e g is te r L ife In s u ra n c e
C om pany; E x-P resid en t, Iow a B an k ers
A ssociation, D a v en p o rt, Io w a


D irector, C itizens T r u s t & S a v in g s B a n k
V ice P r e s id e n t, W a l s h C o n s tr u c t io n C o m p a n y ,
D a v en p o rt, Io w a

Writing all forms of Fidelity and Surety Bonds, Accident and Health, Automobile, Burglary, Plate
Glass, and other forms of Casualty Insurance
Federal Reserve Bank of St. Louis

Correspondence solicited from agents of unoccupied territory

“A National Institution o f SERVICE1*
Central Western Banker, October, 1929


Buys Nebraska Bull
The Dairy Bureau of the United
States Department of Agriculture re­
cently purchased Klaver King, a Holstein-Friesian bull, from the Univer­
sity of Nebraska. This is the third
dairy sire from the Nebraska Univer­
sity herd used by the federal govern­
ment within recent years for dairy cat­
tle breeding projects.
R. R. Graves who is in charge of
federal dairy cattle breeding investiga­
tion selected Klaver King from the
university herd. This sire has been
sent to the government experiment
farms in Huntley, Montana.


Klaver King is a proven sire hav­
ing eleven daughters, each averaging34 pounds of butterfat more than their
dams. With butterfat worth fo rty
cents per pound, these daughters pro­
duced in five years nearly $750 more
butterfat than their dams.
This seven year old bull was a twin
with a heifer calf. The heifer raised
five calves, thus exploding a popular
theory that she should have been a
non-breeder. Klaver King is a grand­
son of a famous Holstein cow that
thirty years ago held a world’s record
in the three-year-old class.

.................. 1....... IIMIIMIMIIIIIIflMIIIIIMIII........Illllltlllm il.....Mulinili.....lim ili:....... Mimi............I,„ .........................I....... .


.................""'Il... ...........................................









First Trust Company

“Complete Investment Banking and Trust Service"
................................... ......................1..... ........................................................................... ,l,!l" ||," |||ll|||!|||||||||||„|||||„|||||'||||||||||||,|,|||||||||||||||||||||||„,|,|,„|| ........... ....... ................. ............ .

National B ank
iTrust Company

‘An Unbroken Record of Seventy Years
is a Guarantee of Safe and
Satisfactory Service”
O F F I C E R S :

M. T.

President of the Board
G. H . Y a t e s , Vice-President
R. R. R a i n e y , Cashier
J. C. M c C l u r e , Vice-President
FI. F.. R o g e r s , Assistant Cashier
T. F. M u r p h y , Vice-President
E. E. L a n d s t r o m , Assistant Cashier
C. F. B r i n k m a n , Ass’t V.-President
A. L. V ic k e r y , Assistant Cashier
P. B . H e n d r i c k s , Ass’t Vice-President V . B . C a l d w e l l , Assistant Cashier
B arlow ,

R. P.

M orsm a n ,

Central Western Banker, October, 1929
Federal Reserve Bank of St. Louis

American Institute of Banking has
launched an educational program for
the year, to include the following sub­
jects and instructors:
John L. White, public speaking in­
structor of Abraham Lincoln High
School, Council Bluffs, a course in
public speaking.
Oliver P. Cordhill, assistant cashier
of the Omaha Federal Reserve Bank,
a course in banking fundamentals.
Gilbert S. Brown, attorney, a course
in negotiable instruments.
Edward J. McManus, credit man­
ager, McCord - Brady Company of
Omaha, a course in standard econo­
Harry P. Lambert, credit manager
of John Beno Company of Council
Bluffs, a course in credits.
Thomas B. Boggs, auditor of the
Stock Y ards National Bank, a course
in principles of accounting.
Classes began September 16, in the
chapter rooms on the eleventh floor of
the Omaha National Bank building.
Russell G. PanVliet of the First Na­
tional Bank of Omaha, is the presi­
dent of the chapter, which has about
250 members.
RAY R. RIDGE, vice president of
the First National Bank of St. Joseph,
Mo., will become vice president of
the Omaha National Bank of Omaha
November 1, he having been elected to
the post early in September. Mr. Ridge
is 35 years old. For the past 21 years
he has been with the St. Joseph bank,
with which he started as office boy
while attending high school. He was
elected a vice president in 1925. He
has been president of the St. Joseph
Credit Men’s Association, and chair­
man of the county division of the Mis­
souri Bankers association.
THE REHABILITATED St. Libory State Bank at St. Libory, Neb.,
was reopened early in September by
the assumption of a large part of the
loss by stockholders. Nearly 125 thou­
sand dollars worth of bad paper, froz­
en assets and real estate was taken off
the bank’s hands. Capital of the new
bank is 15 thousand dollars and sur­
plus 3 thousand dollars. The officers
are: M. Alden, a lumber dealer of St.
Libory, president; Ralph Haggart, St.
Paul attorney, vice president; Ben B.
McNair, formerly of Kimball, cashier.
These three, with Charles Bosselman
and Alfred Dammann, are the princi­
pal stockholders and constitute the
board of directors.

iitm iiiiim iiiiiiiiiiiiim iiiiiiim iiiiiiim iiM iiiiiim iiiiiiiim m iiiiiim iiiiiiiiim iim iiiiiiiiiiiiiiiiiiiiiiiiim m iiniiiiiiiM iiim m m iiiiM iiiiiiim iiM iiiim m iiiiiiim iiM im w nro t

Nebraska News
iiiiiiiiiiim iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiim iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiim iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii

U H IL , ITA l i ï j , P r e s i d e n t
N e b r a s k a B a n k e r s A s s o c ia tio n

elected cashier and active manager of
that institution.
Mr. Sutherland has had many years
of banking experience, having recent­
ly severed his connections with the
Nebraska State bank of Norfolk, pre­
paratory to assuming his new duties.
He has been a resident of Norfolk for
five years.

Frank J. Young, Norfolk, a banker
in northeast Nebraska for the past 27
years and for the past six years con­
nected with the Norfolk N ational
Rank, is now treasurer of the Nebras­
ka Fur Farms, north of Madison.
Mr. Young has resigned his bank
post and commenced his new work at
W M . It. H U G H E S , S e c r e t a r y
the farm. In his capacity of treasurer
N e b r a s k a B a n k e r s A s s o c ia tio n
for the corporation he will have charge
of all disbursements.
Prior to coming to Norfolk, Mr.
Reserves High
A report com pleted by George Young was identified with the Farm­
W oods, Nebraska banking commis­ ers National Bank of Pilger, Nebras­
sioner, on the condition of 688 state ka.
chartered institutions at the close of
Conditions Good
business last June 29, reveals deposits
aggregating 220 million dollars.
Conditions in Nebraska and Wyo­
While the exact sum is not quite ming are as good as may be expected,
as large as that of the last report, this according to W. Dale Clark, president
is due to closing of several institutions of the Omaha National Bank, who re­
and the shrinkage of accounts in the turned to his desk recently following
process of reorganization and reopen­ a two-week vacation.
ing, it was stated.
Deposits in the banks concerned in
To Reorganize
the report, Mr. Wood explained, are
Reorganization of the A m erican
divided as follows.
State Bank, of Kearney, Nebraska, is
Deposits subject to check, $85,275,- virtually certain. Nearly all of the
large depositors have signed the de­
Demand certificates of deposit, $20,- positors’ agreement and com m ittee
members are now seeking signatures
Time certificates of deposit, $96,- of the smaller depositors.
Both the city and country express­
Savings account, $15,653,778.26.
ed their confidence in the institution by
Certified and cashiers’ checks, $1,- offering their support to the waiver.
A substantial condition is indicated,
Return to Omaha
it was said, in the fact that the 688
Otis T. Alvison, cashier, Omaha
banks now have a 20 per cent cash re­
serve, considerably in excess of the National Bank, and Dick Stewart, III,
amount required by law, and a bond cashier, First National Bank, returned
recently from vacations. Alvison visit­
reserve of 16 per cent.
Loans and discounts or mortgages ed at Long Beach, Cal., and Stewart
amount to $156,498,766.98 with over­ at Lake Okoboji.
drafts aggregating $335,615.97.
Banquet Held
Directors and instructors of the
Elected Cashier
Omaha chapter, American Institute of
E. H. Sutherland, prominent Nor­ Banking, recently outlined plans for
folk, Nebraska, banker, has purchased the coming year following a banquet
a substantial interest in the Security at the Paxton hotel.
National bank of Laurel, and has been
“The institute, with 65,000 mem­
Federal Reserve Bank of St. Louis

bers, is the largest educational institu­
tion of its kind,” Russell Van Vliet,
president, stated.
The Omaha chapter has about 200
A ttend Convention
Frank Boyd, vice president, Oma­
ha National Bank; Perry Hendricks,
assistant vice president, United States
National Bank, and Edward Jepsen,
assistant cashier, First National Bank,
have returned to Omaha after attend­
ing the Wyoming State Bankers’ As­
sociation convention at Landers, Wyo.
Mr. Hendricks also visited in Utah
and Colorado.
In Excellent Condition
A survey made by the Federal Land
Bank of Omaha 12 years after it made
its first farm mortgage loan in the
eighth federal land bank district com­
prising Nebraska, Iowa, South Dako­
ta and Wyoming, shows that the 439
national farm loan associations in
these states are in excellent condition,
generally, an analysis by the bank re­
The present survey was to examine
the record and financial standing of
each association, it is explained.
“The results are particularly grati­
fying to the Federal Land Bank of
Omaha and to the associations,” says
a statement by the bank. “The results
also are significant in reflecting the
general improved conditions prevailing
in these four states at this time.”
To Reorganize
Decision to reorganize the Farmers
State Bank of Belgrade, Nebraska,
was reached at a recent meeting of de­
positors. The Belgrade opera house,
where the gathering was held, was
filled with depositors and they ex­
pressed a firm determination to see
that the institution is reopened accord­
ing to Bank Commissioner W oods
who addressed the meeting.
The following committee, of deposi­
tors was appointed to determine the
condition of the bank and see what
paper would have to be removed be­
fore the institution could be reorganiz­
ed : G. F. Malandy, E. E. Nickerson,
Charles Schwensen, Frank McCorm­
ick, and C. Waisner.
Officials of the bank were : J. H.
Withrow, president ; T. N. Withrow,
cashier ; and Heber Hord, Central City
man who has extensive grain, live-

Centrai Western Banker, October, 1929

Ray R. Ridge has been elected a
vice president of the Omaha Nation­
al Bank.
Mr. Ridge is now vice president of
the First National Bank of St. Joseph,
Missouri. He will assume his new du­
ties in Omaha about November 1.

Hold a Meeting
The bankers of Cuming county, Ne­
braska, held a meeting with County
Attorney R. R. Moodie and County
Treasurer Ben F. Graunke at the
West Point State Bank recently.
Every bank in the county was re­
presented and the new law concerning
the deposit and security of county
funds was presented and discussed.

The committee was chosen at a
meeting of depositors from a group of
fifteen nominees, and is composed of
Earl Rosenbach, chairm an ; F. P.
Baldwin, Dan Sullivan, E. A. Kramer
and Charles McWilliams. It will be in
control until successful reorganization
is accomplished and has authority to
appoint a trustee to direct the work of
the new bank. The trustee, however,
will be responsible to the board and
will confer with the body in important

To Reorganize
R eo rg an izatio n of the Farmers
State Bank at College View, Nebras­
ka, is assured for the near future, ac­
cording to members of the committee
which has been working on the project
with L. C. Sorensen, state bank exam­
iner. The committee has already under
consideration several bids for the bank
charter and action will be taken when
the list of offers is complete.

The Installment Idea
“Have you heard the installment
idea of marriage?”
“No, what is it?”
“A girl told her lover she wouldn’t
marry him until he had a thousand
dollars. When he came back a week
later with thirty-five dollars, she blush­
ed and said: ‘Well, I guess that’s near

stock and banking interests in this
state, vice president.

Continental National Bank

R ay R. R idge

Mr. Ridge is thirty-five years old.
He entered the service of the First
National Bank of St. Joseph twenty
years ago as a mail boy and was suc­
cessfully promoted through various
posts in the bank’s organization. He


“A Bank for Bankers”
Our consistent growth and progress, contributed to
largely by our correspondents throughout Nebraska, is
indicative of the careful service and prompt attention
rendered them.
We solicit the accounts of Banks and Bankers, offer­
ing every facility and service.
C H A S . T. K N A P P , C h a i r m a n o f t h e B o a r d .
E D W I N N. V A N H O R N E , P r e s i d e n t
W . S. B A T T E Y , A s s t . V i c e - P r e s .
T. B. S T R A I N , V i c e - P r e s i d e n t
R A Y C. J O H N S O N , A s s t . V i c e - P r e s .
E D W A R D A. B E C K E R , C a s h i e r
W H E A T O N B A T T E Y , A sst. C ash ie r.




7 C ol.


1 0 C ol.


A d d in g
M a c h in e s





Central Typew riter Exchange, Inc.

(Established 1903)

Central Western Banker, October, 1929
Federal Reserve Bank of St. Louis


C. T. F lowers

has been active in affairs of the Mis­
souri State Banker’s Association and
in the American Institute of Banking.
During the war Mr. Ridge served in
France with the 356th Infantry of the

C entral H anover
R stak lislies A

i t evident R e p r e s e n ta tiv e

m B u en o s A ir e s

I n a d d i t i o n to its r e p r e s e n ta tiv e s m L o n d o n , P a r i s , B e r l i n a n d
» S y d n e y , C e n t r a l H a n o v e r lia s e s ta b lis h e d a n o tlie r r e s id e n t r e p r e s e n ­
ta t i v e o ffic e a t 5 0 1 R o q u e »Saenz P e n a , B u e n o s A i r e s , A r g e n t i n a .

T in s

is a lo g ic a l r e c o g n itio n o f tlie in c r e a s in g im p o r ta n c e

iS o u tli A m e r ie a in o u r fo r e ig n b u s in e s s r e la tio n s .
re s id e n t

r e p r e s e n ta tiv e s

c o o p e r a te

w ith

lo c a l


C e n tra l H a n o v e r

c u s to m e rs tlie m a x im u m in s e rv ic e m tlie fin a n c in g


e n s u rin g


e x p e d itin g

o f s ln p m e n ts a n d r e l i a b l e t r a d e in f o r m a tio n .

T k e s e rv ic e s o l tlie f o re ig n d e p a r tm e n t as w e l l as tlie c o m p le te
b a n k in g a n d t r u s t l a c i l itie s o f C e n t r a l H a n o v e r a r e a t tlie d is p o s a l
o f its c o r r e s p o n d e n ts a n d f r ie n d s m tlie b a n k in g w o r l d e v e r y w h e r e .

C entral H anover


1 4 O f f ic e s in 1 4 - M a n h a t t a n C e n te r s
Federal Reserve Bank of St. Louis

su rplu s

a n d

» S E C U R IT Y

u n d iv id e d

p r o f it s

o v e r

»S A L E

o n e

h u n d r e d

m il l io n

d o lla r s

Central Western Banker, October, 19


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


T. G. BOGGS, Auditor

An Account With Us
skillful, efficient handling of all your banking
needs plus the added service offered through
our affiliation with the Northwest Bancorporation with resources of over 360 million.

Stock Yards National Bank
South Omaha

The Only Bank in the U nion Stock Yards

Central Western Banker, October, 1929
Federal Reserve Bank of St. Louis

89th Division. He is an active member
of the American Legion.
In announcing Mr. Ridge’s election,
Mr. Walter W. Head, chairman of the
board, said: “Mr. Ridge brings to his
new activity in the Omaha National
Bank a thoroughly ripe banking ex­
perience. He is a young man of fine
character and it is a great pleasure to
me to be able to associate him with
our organization.”
W. Dale Clark, president of the
Omaha National Bank, also announces
the appointment of C. J. Flowers as
an assistant cashier, effective Novem­
ber 1. Mr. Flowers is now assistant
cashier of the Gentry County Bank of
Albany, Missouri. He is twenty-nine
years old and a graduate of the Uni­
versity of Missouri.
T W E N T Y -O N E Nebraska state
banks have been closed in the three
months of July, August and Septem­
ber. During that period, 15 banks have
been reopened on the new plan by
which depositors scale down th e ir
claims to the level of the solid assets
of the bank, and the remainder of the
deposits is placed in the hands of a
trustee for collection. Later dividends
are paid depositors on whatever mon­
eys are collected.
The banks have been recapitalized,
in each case, under this plan. Three
of the other closed banks are in pro­
cess of reo rg an izatio n under this
According to George W. Woods,
bank commissioner of Nebraska un­
der the new laws of the last legisla­
ture, the banking situation in Nebras­
ka is showing improvement, although
he indicates that all the weak institu­
tions of the state have not yet been
weeded out. In a number of instances
of failed banks, the stockholders have
met the demands of the state depart­
ment for rehabilitation by heavy as­
He called attention to the fact that
the banks have invested approximately
8 million dollars in real estate, taken
over on second mortgages, which con­
stitute equities in about 19 million dol­
lars worth of lands. The state law re­
quires banks to dispose of such hold­
ings within five years from acquire­
ment, but it has been necessary to is­
sue permission extending the time.
“What’s the matter, dear?”
“Can’t get this confounded self­
starter to work. I think there must
be a short circuit somewhere.”
“How annoying! Can’t you leng­
then it?”


News of the

Beef Cattle Production
Many farms are economically suited
for raising beef cattle as well as for
putting the feed lot finish on them.
Farms having a large proportion of
nontillable land or wooded areas suit­
able for grazing are especially adapted
for a breeding herd from which beef
calves can be produced for fattening.
Some of the more important phases
of beef production on the farms are
discussed by W. H. Black and E. W.
McComas of the bureau of animal in­
dustry in farmers’ bulletin 1592-F,
Beef Production on the Farm, just is­
sued by the United States Department
of Agriculture.
On farms where the sale of beef
cattle provides the major portion of
the farm income, it is desirable, these
specialists say, that the number of beef
cows be large enough to enable the
owner to market at least one carload
of cattle each year and also to provide
heifers for replacement of cows in the
herd. The size of the herd above the
minimum number of cows required
for successful operation will depend
on the amount of pasture and the
quantity of hay and crops that may be
produced on the farm for use in win­
tering stock and feeding cattle for
Subjects covered in the discussion
include the herd bull, beef cows, dualpurpose cows, feeding and manage
ment of the herd, equipment for the
breeding herd, breeding for spring
and fall calves, weaning and castrating
calves and feeding cattle for market.
Copies of the bulletin may be ob­
tained free as long as the supply lasts
by writing to the United States De­
partment of Agriculture, Washington,
D. C.
Urged to Keep Records
The 41,000 dairy calf club members
in the United States, a large portion
of whom will no doubt lie the owners
of the leading dairy herds in a few
Federal Reserve Bank of St. Louis


short years, are being encouraged to
keep accurate records. Boys of the
4-H clubs are finding it just as essen­
tial to keeping records on production
costs and net profits as it is for suc­
cessful merchandising concerns to keep
their records of sales and costs.
To encourage these young dairy en­
thusiasts, a contest is announced by
the National Committee on Boys and
Girls’ Club Work, which starts Sep­
tember 1, 1929, and closes August 31,
1930. Members of the 4-H clubs hav­
ing produced cows which were 4-H
calves will keep an accurate produc­
tion record which will include the
pounds of milk produced; the percen­
tage of butter fa t; and the feed cost
of producing such butter fat.
On the basis of production plus the
club record, one winner from each
state will be selected as state champion
who will receive an educational trip
provided by the Linseed Meal Educa­
tional Committee to the National Dairy
Exposition to be held at St. Louis,
Missouri, in 1930. County champions
will receive gold filled medals of hon­
“We need plans like this to encour­
age the older boys and girls in club
work,” said T. A. Erickson, state club
leader, Minnesota, in commenting on
the contest. Other state leaders in the
dairy states are keenly interested in
the attendant results. It is expected
that some sensational records may be
uncovered which may equal those of
the baby beef club boys, one of whom
showed the grand champion steer at
the last International Live Stock Ex­
The educational trips and medals to
make the contest possible, are offered
in the following states: Illinois, India­
na, Iowa, Michigan, Minnesota, New
York, North Dakota, Ohio, Pennsyl­
vania, South Dakota and Wisconsin.
Ak-Sar-Ben Show
II. J. Gramlich, professor of animal
husbandry at the University of Ne­

braska, Lincoln, will again serve as
general superintendent of the Ak-SarBen Live Stock show in Omaha, No­
vember 1 to 8, according to W. II.
Schellberg, chairman of the Ak-SarBen executive committee.
Gramlich is one of the best known
live stock men in the United States
and has acted as judge at several of
the nation’s largest live stock exhibits.
The 1929 premium list of the AkSar-Ben Stock show is off the press,
listing 50,000 in premiums to be pre­
sented owners of blooded live stock
exhibited at the show.
A copy of the catalog may be ob­
tained by writing to Secretary Charles
Gardner, Ak-Sar-Ben, Omaha, Nebr.
Files Incorporation Papers
To stimulate the dairy industry in
the state of Nebraska, the Nebraska
Dairy Development Society of Lin­
coln has been organized and filed pa­
pers of incorporation with the secre­
tary of state.
The society hopes to perpetuate the
dairy industry through education, ser­
vice and studied development in pro­
duction and marketing dairy products.
The trustees and managing board
consists of W. H. Brokaw, L. H. Daft,
H. P. Davis, of Lincoln ; F. J. Far­
rington, E. Flynn and Carl R. Gray,
of Omaha; Wayland Magee, Benning­
ton; Eben D. Warner, Scottsbluff ; J.
S. Clark, Ravenna; Fred A. Egger,
Roca ; H. A. Gordon, Harvard ; Keith
Neville, North Platte, and Dan V. Ste­
phens, Fremont.
Offer Short Courses
“The farm operator’s course which
begins at the agricultural college No­
vember 25, is the most practical agri­
culture study ever offered Nebraska
farm boys,” H. K. Douthit, supervisor
of short courses, declared in a state­
ment regarding the winter short terms
This course includes animal husban­
dry, crops, woodwork, forge, animal

Central Western Banker, October, 1929


diseases and hygiene, English, and
physical education during the first
year. It takes two winters to finish all
the work. Some boys attend only for
one term.
“The winter short terms are for
farmers who want practical informa­
tion even though they are unable to
enroll in the regular college classes.
The regular college staff members will
teach the farm operator’s co u rse,”
Douthit said.
According to those in charge of this
course which Avas new last year, more
than fifty young men finished the first
year work. Prospects this year are for

a total enrollment of about one hun­
dred and twenty-five. About one-half
of the students last year were high
school graduates although this is not
a req u irem en t. The men averaged
about twenty—three years of age.
This practical farm course also in­
cludes some recreational activities. The
students use the agricultural college
gymnasium for their athletic games
and other amusement features.
Mr. Douthit began his work as su­
pervisor of all agricultural college
short term courses September 1. He
was formerly county agent in Webster
county. A bulletin with complete in­


HE size and compact char­
acter of our organization
make it possible for us to serve
correspondent banks in a careful,
individual way. Nothing is dele­
gated to clerks which should have
the decision and experience of an

Northwest Corner LaSalle and Monroe Streets


Central Western Banker, October, 1929
Federal Reserve Bank of St. Louis

formation about the farm operator’s
course has been issued by the Univer­
sity of Nebraska and may be secured
by addressing the supervisor of short
courses, college of agriculture. All the
subjects outlined in it are designed to
prepare students for farm manage­
ment and operation.
(C ontinued from Page 6)

proficiency are to be demanded in
financial economies, let the student
understand that he can win the prize
only through years of patient toil.
Sound, profound judgment, so essen­
tial to good banking, becomes seasoned
only through continuing years of ex­
perience, while integrity, that other
matchless prerequisite to good bank­
ing, without which the mightiest finan­
cial structure will fall, is a gift com­
ing down only from above. Bankers
are made, like the oak, from long years
of experience and endurance.
B ankers should not wait to be
prompted by public opinion. They
should, be their own resolution, elevate
the standards of banking. Associations
of bankers can and should hold aloft
the highest standards of banking and
beckon all who would win, to follow
its lead. The great American Institute
of Banking has long been leading the
way and deserves far more sympa­
thetic support and encouragement than
it has ever received. It cannot manu­
facture integrity, nor sound judgment,
but it can and does supply to the com­
ing generation of bankers, that which
they, need by way of instruction. It is
well known that there does not exist
in this land institutions for the educa­
tion of bankers comparable with insti­
tutions for education in law and medi­
cine, but it is coming to pass that great
universities and colleges do supply su­
perbly fine facilities of which all who
can and will, may avail themselves. It
is not possible that everyone looking
forward to the banking business as a
profession can be advantaged by these
superior facilities, but this need not be
a bar to them. It would be unfortunate
if the law of the state would require
that none could he bankers but gradu­
ates of schools of finance. Banking
must ever remain to be a matter large­
ly of integrity and good judgment.
Technical knowledge of practical bank­
ing is simple and easy to obtain, in fact
every day banking is the best school in
Then too, any rigid system of licens­
ing bankers would clash with the na­
tive propensities of men. Good men
differ. The best of two men, perhaps
the best among ten men, and the best

qualified by far, it may be, to success­
fully manage a bank in all that by
which good qualities for bank man­
agement are measured, might and of­
ten would fare ill in an academic ex­
amination, compared with a b rig h t
youngster, accustomed to the atmos­
phere of the class room.
Finally, the impracticability of the
proposed scheme to license bankers
must be apparent. While there are
common standards for honesty and
sound judgment, it would manifestly
be impractical, if not impossible, to es­
tablish uniform standards of qualifica­
tion in all classes and sizes of banking
institutions. All these adaptations can
be much more satisfactorily and effi­
ciently taken care of within and among
the banks themselves, than by the fiat
of the legislature; nor in any public
board so capable of determining who
are qualified to hold positions in coun­
try banks, as the in d iv id u al banks
themselves. The appointment of a pub­
lic examining board with the require­
ment that all who enter banking shall
appear before them, and pay a license
fee, is but an added piece of useless
machinery, adding nothing to efficien­
cy. Good bankers become better bank­
ers, not bv being branded by some
public board, but when diligently and
patiently they have received training

in banking and when by higher tokens
the grace of God rules in their hearts,
and the fear of the Lord is ever before
their eyes.
haps the most serious condition in
banking in Nebraska is at an end, and
a hopefulness for the future, the meet­
ing of the Nebraska State Bankers
Association at Omaha in November is
being looked forward to in all parts of
the state, with the expectation that it
will be one of the largest and happiest
gatherings of the bankers, in many
The convention will be held Novem­
ber 6 and 7, with headquarters and
most of the gatherings at the new
Paxton hotel.
Four of the principal speakers have
been announced as follows:
Thomas P. Patton, Jr., assistant
general counsel of the American Bank­
ers Association, of New' York City.
Samuel P. Arnot, president of the
Chicago Board of Trade.
H. N. Stonck, president of H. N.
Stonck and Company, bank manage­
ment specialists, of Chicago.
Carl D. Ganz, cashier of the Farm­
ers & Merchants Bank, of Alvo, Neb.
The days of the convention coincide
with the opening days of the Nebraska

Diamond Jubilee anniversary celebra­
tion in Omaha, and the convention will
be immediately followed by the sec­
ond annual Ak-Sar-Ben live stock
show and exposition, and horse show,
at Omaha.
A special meeting of the state bank
division of the association will be held
the morning of November 6. At that
meeting Clarence B. Bliss, secretary
of the department of trade and com­
merce of Nebraska, and George W.
Woods, bank commissioner, will speak,
and their message will be of special
and timely interest to the state bank­
ers, according to William B. Hughes,
secretary of the association.
Entertainment plans for the visitors •
contemplate a theater party, followed
by an informal dance Wednesday eve­
ning, and a visit to the stock show and
horse show Thursday evening.
Problems of finance have been oc­
cupying the attention of the officers of
the Nebraska B ankers Association,
largely because of a falling off in the
amount received for dues, in recent
years. According to Secretary Hughes,
in 1925 receipts from dues were $14,300, which has fallen in following
years to $13,500, $12,900, $12,500 and
finally to $11,600 the past year. A pro­
posal to increase the dues may come
before the annual convention in No­

may be procured thru our

Write Us

U n io n S to c k Y a rd s
W. P. A DK INS, P r e s id e n t
P i.


K P iO E O E P i,
Federal Reserve Bank of St. Louis

HOWAPtD O. W ILSO N, C a sh ie r



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

L. V. PU L L IA M , Asst. C ash ier

Asst. C a sh ie r
W. S. HOCtUE, Asst. C a sh ie r

Central Western Banker, October, 1929


South Dakota News

Married in Brookings
W. M. Griffith, cashier of the Farm­
ers and Merchants Bank, H uron,
South Dakota, and Miss Byrne Smith
of Brookings, were m arried at the
bride’s home in Brookings recently.
Mrs. Griffith is an accomplished musi­
cian, and was harpist for several sea­
sons on a lyceum circuit.

county was represented. The follow­
ing officers were elected for the com­
ing year: president, C. N. Halvorsen,
of Castlewood; vice president, Arnold
Gerberding of Lake Norden, and sec­
retary-treasurer, L. A. Jacobson of
Bryant. A constitution and by-laws
were adopted.

To Remodel
Remodeling of the quarters of the
First National Bank of Aberdeen,
South Dakota, will provide about 2,400 feet additional floor space. A 25foot addition will be constructed at the
rear of the building. Plans include
changes in the banking room, lobby
and safe deposit vaults.

Take Over Wool Pool
Announcement was made recently
that the First National Bank of W a­
tertown, South Dakota, was taking
over the financing of the South Dako­
ta Wool Pool, involving $350,000. The
financing was handled last year thru
the National City Bank of New York.
The Wool Pool is handled thru the
South Dakota Wool Growers Associa ­
tion in Brookings.

Service Charge
Several South Dakota bankers have
recently taken on the service charge on
unprofitable checking accounts. They
are the Community State Bank of
Lake Preston, Farmers State Bank of
Rockham, Miranda State Bank, State
Bank of Tulare and the banks of
Hamlin County. The Hamlin County
Bankers Association took this action at
its recent meeting.

Wallace Resigns
O. B. Wallace, South Dakota assist­
ant superintendent of banks resigned
to accept a position in the business ex­
tension department in the Continental
Illinois Bank & Trust Company of
Chicago. According to reports, he is
to be succeeded by J. B. Lambertson
of Sioux Falls.

Hold County Meeting
The recently organized FI ami in
County, South Dakota, Bankers Asso­
ciation held its second meeting recent­
ly, at which time every bank in the

Gets Charter
Approval of a charter for the Brule
County Bank, Chamberlain, South Da­
kota, by the department of banking
and finance and the depositors guaran­
ty fund will include H. I. Lawrence,

:Whetfier;itii'ey are coming as permanent residents, or
fo'iya shortVstay, you will render them a genuine service
B.y^iyingjthe^cards of introduction to . . .


Ifc v x ic o

'n s s t N a t io n a l
iO S A n G E L E S



President and Chairman
o f the Executive Committee

Chairman o f the

Central Western Banker, October, 1929
Federal Reserve Bank of St. Louis

T h is B ank has B ran ch es, w h ic h a re c o m ­
p le te B anks, in all p a rts o f th e Los A n g eles
area, a n d in 61 c o m m u n itie s in C a lifo rn ia ,
e x te n d in g fro m F resn o a n d San Luis
¡O bispo to th e Im p e ria l V alley.

W e h av e a rra n g e m e n ts fo r g iv ­
in g in fo rm a tio n , m ap s, etc., to
n e w a rriv als in C a lifo rn ia w h ich
m ate ria lly aid th e ir c o m fo rt a n d
p lea su re w h ile in th e State.

Pierre ; W. B. Martin, Pukwana ; and
E. D. Roberts, Pierre. Capital stock
was given as $25,000.
Savings Bank Business
The greater part of the most serious
competition experienced by savings
banks is due to the popular desire for
larger income than the savings bank
affords, according to a report of the
Committee on Savings to the Execu­
tive Committee, Savings Bank Divis­
ion, at the American Bankers Associa­
tion convention in San Francisco.
There are a number of prime fac­
tors which have adversely affected
savings deposits in banks, either by ac­
tually reducing volume or restricting
increases, said the Committee’s report,
presented by the Chairman, Arlan W.
Converse, vice-president, First Trust
& Savings Bank, Chicago. Among
those noted were: the higher plane of
living, particularly noticeable as the
period of continued prosperity length­
ens, the increasing volume of life in­
surance written annually, the many
ramifications of instalment selling and
budget buying, home buying and in­
vestment of funds in mortgages, bonds
and stocks for investment yield, specu­
lation with the aim of profit from the
increase in value and the elimination
through restricted immigration of a
large number of naturally thrifty peo­
Building and loan associations are
also in direct competition with banks
for savings deposits in many sections
of the country. In fact, almost 50 per
cent of savings banks reporting said
they considered this the most serious
competition in the future development
of the savings business. Ten per cent,
classed stock speculation as the most
serious threat to the business of the
savings bank. An even 100 savings
banks reported that a small amount of
their savings withdrawals were going
into the stock market and 21 banks
said a large percentage of withdrawals
was for that purpose. Thirty banks
state that the savings withdrawn were
being used for speculation mainly, but
151 believed they were going into in­
vestments mainly.
The Committee said it felt the need
of continued and persistent effort on
the part of savings banks to bring be­
fore their communities the advantages
and scope of their services.
T e ach er : “Johnny, if your father
could save one dollar a week for four
weeks, what would he have?”
M odern C hild (promptly) : “A ra­
dio, an electric refrigerator, a new
suit, and a lot more furniture.”


Utah News
New Home
Work on the new home for the First
National Bank of Coalville, Utah, is
progressing, and it is expected that
the building will be ready for occupan­
cy about October 15. The brick and
plaster work is completed and the car­
penters are busy with laying floors,
construction of directors’, officers’ and
customers’ rooms, which will be sep­
arate from the lobby of the bank prop­
Clearings Higher
Clearings for the month of August
in the five Ogden, Utah, banks were
slightly higher than for the same per­
iod last year, Harmon Barton, secre­
tary of the Ogden Clearing House
Association, reported recently.
Clearings for August, 1929, totaled
$9,122,034.38, and for August, 1929,
were $9,652,384.22.
Dies in Sait Lake
Henry George McMillan, 81, prom­
inent mining operator, banker and for­
mer councilman of Salt Lake City,

Utah, died recently following an ex­
tended illness.
Mr. McMillan was a director in
Walker Brothers Bank and held a
trusteeship in St. Mark’s hospital and
Westminster college at the time of his
death. He has been associated with
both latter institutions since their or­
Speaks at Convention
W. H. Hadlock, Utah bank com­
missioner, recently attended a conven­
tion of the Eastern Utah Bankers’ As­
sociation, in session at Price. He de­
li verecl an address on the subject,
“Credit Information for Banks.” Salt
Lake bankers who attended the con­
vention included H. M. Craft, Carl R.
Marcusen and Orvil W. Adams.

Horse Pride
The improvident colonel had pur­
chased an ancient hunter from the
livery stable on the instalment plan.
A week after the deal had been com­
pleted, he rode over to see the owner
of the stables.
“Hyde,” he began, somewhat per­
emptorily, “I am not entirely satisfied
with this animal.”
“Oh,” said the other. “What’s
“She won’t hold her head up,” the
colonel complained bitterly.
The dealer grinned up at his client.
‘‘That’s only her pride,” he said
smoothly. “You just wait till she’s
paid for, and then see.”

Meet in Price
Members of the Eastern Utah Bank­
ers’ Association met in Price for the
annual meeting of that organization.
A program covering the most import­
ant phases of banking, was presented
to the visiting delegates.

For the Dog
“What are you taking those cuspid­
ors home for?”
“I ’m taking them home to my dog.”
"What kind of a dog do you have,

-th a t's a l l
yo u need
to k n o w /
Eppley Hotels are
known throughout
the country for hos­
pitality, courtesy,
service. If it’s an
E p p l e y

H o t e l

“th a t’s all you need
to know!”
Omaha, Neb. . . . Hotel Fontenelle
Hotel Rome
Hotel Logan, Apartment Hotel
Lincoln, Neb..............Hotel Lincoln
Hotel Capital
Norfolk, Neb.............. Hotel Norfolk
Council Bluffs, la. . . . Hotel Chieftain
Marshalltown, la. . . Hotel Tallcorn
Cedar Rapids, la ........ Hotel Montrose
Sioux City, la ............... Hotel Martin
Sioux Falls, S. D. . . Hotel Carpenter
Hotel Cataract

O p era ted b y G ^

Eppley Hotels Company

Federal Reserve Bank of St. Louis



C. A. Robertson, vice-president of
the organization was master of cere­
monies. Speakers were Judge George
Christensen, Carbon Couifly Bank ;
Carl R. Marcusen, H. M. Craft, O. W.
Adams, H. B. Crandall, Charles Redd
and Mayor W. Frank Olson of Price.



Cfjasc Rational Jianfe
of the City of New York
P in e S tr e e t c o in e r o f N a ssa u
C a p ita l-------------------------------------------- $ 1 0 5 ,0 0 0 ,0 0 0 .0 0
S u r p lu s a n d P r o fits _______________
1 3 7 ,0 6 2 ,4 5 3 .4 0
D e p o s its ------------------------------------------ 1 ,0 6 4 ,6 8 8 ,9 5 8 .7 9
A lbert H . W iggin,
C hairm an o f the Board
John M cH ugh
Chairm an o f the E x e c u tive C om m ittee

C harles S. M cCain
P resident

R obert L. C larkson
Vice-C hairm an o f the Board
Vice-P residents
C arl J. Schm idlapp
R eeve Schley
H en ry O llesm eim er
Janies T. Lee
S h e rrill Sm ith
A lfred C. A ndrew s
R obert I. B arr
G eorge T. W a rre n
George D. G raves
F ra n k O. Roe
H a rry H . Pond
Sam uel S. Campbell
W illiam E. Lake
C harles A. Sackett

H ugh N. K irkland
Tames H . G annon
W illiam E. P u rd y
George H . Saylor
M. H adden H ow ell
Joseph C. R ovensky
R uel W . P oor
Edw in A. Lee
L eon H . Jo h n sto n
W illiam H. M oorhead
H orace F. P oor
E dw ard E. W atts
J. S p erry K ane

F ran k lin H . G ates
T. A rth u r P y term an
A m rose E. Im pey
L ynde Selden
M aurice H . E w er
H ugo E. Scheuerm ann
R alph L. C erero
J a y D. Rising
H aro ld W . V anderpoel
Tames B ruce
W a lte r S. Jelliffe
A rth u r W . M cCain
Claude H . B eaty
F red e ric k O. F o x cro ft

V ice-P resident and Cashier
W illiam P. H olly

Central Western Banker, October, 1929

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uiiuim m im M iiiiiiiiiiiiiiiiiiim iiiiiiiiiim iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiim iiiiiiiiiiiii in mm mu inumi mi nini i h hi in mu ululili Ulutin

Banker Dies
Wallace C. Kemp, former mayor of
Wichita, member of the state banking
board of Kansas, and cashier of the
Citizens State Bank, died recently fol­
lowing a month’s illness due to a com­
plications which resulted from sys­
temic poisoning and high blood pres­
County Meeting
Ellis, Kansas, bankers were hosts
recently to the Ellis - Trego County
Bankers Association. B. E. Y oung,
comptroller of the Commerce Trust
Company of Kansas City addressed
the bankers on the subject of “Analy­
sis of Accounts.”
New Building
A new building is being erected by
the Johnson State Bank of Johnson,
Kansas. It will be handsomely equip­
ped with all-modern fixtures. The
town of Johnson is witnessing a period
of building activity, reflecting the
prosperity of the town and that por­
tion of Stanton County.

Trust Co., Kansas City, Missouri; C.
W. Allendcerfer, First National Bank,
Kansas City, Missouri; A. M. McAd­
ams and wife, Federal Reserve Bank,
Kansas City, Missouri; George Young,
Drovers National Bank, Kansas City,
Missouri; E. L. Hart, Jr., and wife,
Union Stock Yards National Bank,
W ichita; George W. Hamilton and
wife, Fourth National Bank, Wichita;
IT. E. Wright and wife, Citizens State
Bank, Wichita; Frank C arson and
wife; First National Bank, Wichita;
C. J. Chandler and wife, First Nation­
al Bank, Wichita; Cl if N aftzg e r,
Southwest National Bank, Wichita; C.
W. McKeen and wife, National Bank
of Topeka; W. W. Bowman, Kansas
Bankers Association, Topeka; R. L.
Bone, Central National Bank, Topeka;
F. F. Clinger, Central National Bank,
Topeka; H. E. Suderman and wife;
Midland National Bank, Newton; C.
W. Classen, Kansas State Bank, Newiiiiimim iiiiiiiiim iiiiiiim iim m im m iim m


ton; W. J. Watson, First National
Bank, Pittsburg; H. I). Tucker, the
Eureka Bank, Eureka; Fred Beeler,
Jewell; M. A. Fimbocker and wife,
Peoples National Bank, Burlington;
Ben S. Paulen, Wilson County Bank,
Fredonia; A. 1). Jellison and wife,
Jellison Trust Co., Junction City; J.
R. Geis, Farmers National Bank, Salina; J. A. Mermis and wife, First
National Bank, Hays; C. E. Floersch
and wife, Pinion National Bank, Man­
hattan; H. S. Buzick, Jr., and wife,
Sylvan State Bank, Sylvan Grove; B.
A. Welch, State Bank of Kingman;
Will Wayman, Emporia State Bank;
I. J. Meade, Fawrence National Bank;
M. H. Malott, Citizens Bank, Abilene;
A. F. Wood and wife, First National
Bank, Elkhart; J. D. Bjorkman, Com­
mercial National Bank, Kansas City;
Miss Josie Eresch, First N ational
Bank, Beloit; W. T. Wright and wife,
Cloud County Bank, Concordia; J. D.
Stewart, St. John National Bank, St.
John; D. E. McIntosh and wife, Peo­
ples National Bank, Clay Center, and
T. M. Givens and wife, Citizens Na­
tional Bank, Fort Scott.
m iiiiiiiim iiiiiiiiiiiiiiH iiiiiiiiiiiim iiim iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiim m iiiim iiiiiiiiiim iiiii

New Mexico News

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Adopt Service Charge
Stevens County banks which in­
clude the Citizens State Bank of Hugoton, Kansas; the First National of
ITugoton, the Moscow State, have in­
stalled a service charge of fifty cents
against a depositor’s account each time
the account is overdrawn.
To Address Group
President R. C. Kemper, of the City
Bank of Kansas City, is one of the
speakers scheduled to appear before
the Group 6 meeting of Kansas bank­
ers at Hill City, on October 15. His
topic will be “Credit Problems.”
Dies in Winfield
PI. J. Fight, secretary and treasurer
of the Fidelity Trust Company of
Winfield, Kansas, died recently. He is
a brother of M. B. Fight, president
of the Fidelity Trust and First State
Bank of Winfield.
Attend A. B. A.
Reservations made on the Kansas
special to the A.B.A. convention in­
cludes the following:
Thornton Cooke and wife, and Miss
Paura Cooke, C olum bia N ational
Bank, Kansas City, Missouri; L. W.
Hall, Fidelity N atio n al Bank and

To Continue Instruction
The educational committee of the
New Mexico Bankers A ssociation,
composed of E. M. Brickley, cashier
of the First National Bank at Carrizozo; A H. Berdeman, cashier of the
Fas Vegas Savings Bank, and W. M.
Snyder, president of the Tea County
State Bank at Fovington, co-operating
with the schools of New Mexico, will
continue its adopted policy of giving
to the graduating classes of the high
school and eighth grade classes of the
school and civic clubs, instructions in
banking and elementary economics.
Change Officials
The First National Bank of Duran­
go, New Mexico, one of the most
widely known financial institutions in
the west, has just made some logical
changes in management, following the
death of John F. McNeil, pioneer of
banking in all that great stretch south­
west of Denver and Pueblo, to Pres­
cott, Arizona.
Alfred McNeil Camp, nephew of
the departed financier, becomes presi­
dent of the bank. The place held as di­
rector of the board by Mr. McNeil is
filled by A. M. Emigh. The vice-presi­
dency held by Mr. Camp is filled by
Arthur W. Ayers. Both of the latter

Central Western Banker, October, 1929
Federal Reserve Bank of St. Louis

went out of school to spend their lives
with the First National.
Banker Dead
The death of Frank A. Hubbell of
Albuquerque, New Mexico, for many
years a prominent figure in the ranch­
ing, banking and sheep business and
for a quarter of a century an influen­
tial political leader, removes one more
of the outstanding figures of the old
territorial political regime. Coming so
closely after the death of Secundino
Romero of San Miguel county it makes
one feel that the old days are passing
and have nearly turned the corner to
New National Bank
E. M. Brickley, of Carrizozo, was in
Alamogardo, New Mexico, recently,
and made the announcement that a
new bank is to be established by him­
self and associates as soon as neces­
sary formalities can be completed.
Application has been made for a na­
tional bank charter and it is expected
arrangements will he completed in a
very short time.
The new institution will be affiliated
with the H. B. Jones system, with
banks at Tucumcari, Santa Rosa, Car­
rizozo, Willard, and Mountainair.

itself and automatically completes the
deposit. The customer then closes and
locks the door again. He can not re­
move his key until the door is locked.

NHnHiMiiiiiiinmiimiiiHitMiinmiiiiHmiiiHiiiim im iiiimiiim mMiiiHmiiiiiiiHimmmMMiiHMiim iiMniiiiniinuimiHiiHiiiiiimiiiiimHHiHiHHUHHiHHii

Colorado News

Bank clearings in Colorado Springs
for the first eight months of 1929 ex­
ceeded the clearings for the same per­
iod in 1928 by $1,840,093.31, according
to figures released by Arthur Yale of
the Colorado Springs Clearing House
Association. The clearings for the
eight months from January to August,
inclusive, totaled $48,617,786.96. The
total for the same period of 1928 was
Officers Changed
At a meeting of the board of direc­
tors of the Rubey, Colorado, National
Bank held recently, a num ber of
changes were made in the officials of
the bank.
H. R. Green was appointed cashier;
Robert J. Kelly was appointed assis­
tant cashier; E. J. Dennis succeeded
Mr. Kelly; Miss Lela G. Graft was
appointed assistant to the president. J.
C. Burger as chairman of the board,
E. A. Phinney, president, and H. W.
Pratt, vice-president, rem ained the
Returns to Desk
After an absence of four months
from his desk, Charles PI. Cheney,
president of the First National Bank,
surprised employes and frien d s of
Boulder, Colorado, by returning to
Early in the spring, Mr. Cheney had
an attack of flu. Later a re-occurrence
with some heart trouble, that accom­
panied severe flu cases of 1929, caused
him to be ordered to take absolute rest.
For months he has been at home,
spending part of the day on the porch,
the rest of the time inside. He has
gained daily and is feeling “fit as a

fiddle” again, but is to take his work
easy for several weeks.
Talks to Bankers
Harry Mendenhall, cashier of the
Rocky Ford, Colorado, National Bank,
was the principal speaker on the pro­
gram at a group meeting of the Colo­
rado State Bankers Association which
met in Walsenburg recently.
Mr. Mendenhall spoke regarding
the cost of carrying the individual ac­
counts, and illustrated his talk with
figures obtained and compiled by him
over a period of time in the local in­
Joint Meeting
Fifty-one bankers of Colorado and
New Mexico gathered at Walsenburg,
Colo., recently, for their semi-annual
get-together banquet and meeting. The
bankers were all members of group
two division of the Colorado State
Bankers Association while the New
Mexicans were guests of the former.
The banquet, which started at 7 o'clock
was presided over by B. L. Snodgrass
of the First National Bank of Walsen­
burg, while the meeting which follow­
ed was in charge of N. F. Kastner of
the Guaranty Bank.
For Late Banking
An after hour depositor has been in­
stalled at the Fort Collins, Colorado,
National Bank to enable its customers
to deposit their late cash receipts at
any hour day or night.
Upon the outside of the bank build­
ing is a bronze door. The customer un­
locks this door and pulls toward him
the deposit receiver, or carrier, into
which he drops a bag containing his
deposit. The deposit receiver returns

Change in Officials
Willis H. Fassett was elected presi­
dent of the Wallace State Bank at a
meeting of the board of directors held
recently in Monte Vista, Colorado.
Mr. Fassett succeeds R. G. Breckenridge of Pueblo, who has been presi­
dent and chairman of the board of di­
rectors since 1920. The other officers
of the bank and its management will
remain unchanged.
Three new directors, M. Turnley
Lightner, Henry Chapman and W. F.
McClure, well known business men,
were elected to the board. Oilier mem­
bers of the board are Willis H. Fas­
sett, Charles Edman, W. E. Kistler,
and R. L. Stitt.
While Mr. Breckenridge and Mrs.
Wallace are resigning from the direc­
torate they will retain a substantial
portion of their holdings of stock in
the bank.
“Acquitted,” said Judge Collins.
The negro who had been accused of
stealing a watch looked doubtful.
“ A cq u itted ? W hat you mean,
judge?” .
“I mean,” answered the judge, “you
are acquitted.”
The negro looked more confused
than ever. “Judge,” he asked, “does
dat mean I have to gib de watch hack.”
The man who reaches the top is the
one who is not content with doing just
what is required of him. He does
Nothing is easier than fault-finding;
no talent, no self-denial, no brains, no
character are required to set up in the
grumbling business.—West.






(W it h

w h ic h

is a m a lg a m a t e d






P A I D - U P C A P I T A L _________________________________
R E S E R V E F U N D ___________________________________

.$ 3 7 ,5 0 0 ,0 0 0
2 0 .5 0 0 .0 0 0
3 7 .5 0 0 .0 0 0
$ 1 0 4 ,5 0 0 ,0 0 0

Aggregate Assets 30th Septermber, 1928, $444,912,925








D A V ID S O N —


5 4 S B r a n c h e s a n d A g e n c i e s in a l l A u s t r a l i a n S t a t e s , F e d e r a l T e r r i t o r y , N e w Z e a l a n d , F i j i , P a p u a , M a n d a t e d T e r r i t o r y o f
N e w G u in e a a n d L o n d o n . T h e B a n k C o lle c t s f o r a n d U n d e r t a k e s t h e A g e n c y o f O th e r B a n k s , a n d t r a n s ­
a c t s e v e r y d e s c r ip tio n o f A u s tr a lia n B a n k in g B u s in e s s
Federal Reserve Bank of St. Louis

Central Western Banker, October, 1929

The 1930 convention city will be se­
lected later by the association execu­
tive committee.
Carl Schumaker of Casper was cho­
sen vice president; H. F. Esmay of
Douglas was named treasurer, and Ca­
therine Snyder of Casper, was named
Four addresses were on the pro­
gram. George A. Hinman of Greybull,
delivered the opening talk today, dis­
cussing “Units vs. Chain of Branch
C. W. Irwin considered “Taxation,
Is It Justified?”
The subject of deferred credits was
handled by D. H. Gageman of Chey­
William Pugh of Evanston, deliver­
ed the final convention address. He
discussed the bankers’ association as
an active organization.
A general discussion of all subjects
considered in the addresses preceeded
the committee reports and. election.
More than 200 bankers attended the

Wyoming News
Dies in Laramie
Last rites in honor of Herman Heg­
ewald, pioneer Laramie, W yom ing,
banker and merchant were held at St.
Matthew’s Cathedral recently.
The cathedral was crowded with
people who came to pay their respects
to Mr. Hegewald who was one of the
oldest residents of Laramie.
Mr. Hegewald was president of the
First State Bank and vice president of
the Laramie Grocery Company.

health. Mr. Huie is convalescing from
an illness which kept him in a hospital
for two months. He plans to go to his
former home in Atlanta, Ga., to recu­
Mr. Huie has been president of the
First State Bank since its organization
in 1924.
Mr. Tierney is president of the First
State Bank in Guernsey and has had
many years experience as a banker
and a bank examiner.

Elected President
Election of Ray Tierney of Guern­
sey, as president of the First State
Bank of Douglas, Wyoming, was an­
nounced recently.
Mr. Tierney succeeds Byron S.
Huie, who resigned because of ill

Convene in Lander
William Pugh of E v an sto n was
elected president of the W yom ing
Bankers’ Association at the closing
session of the organization’s annual
convention. He succeeds H a r r y R.
Weston of Jackson.

T h e B a n k e r’s C o n fid en tial M a rk e t
J A A — O n l y b a n k i n s o u t h w e s t e r n M i s s o u r i t o w n a b o u t 500
p o p u latio n .
Gas, e le c tric ity , c ity w a te r , g o o d schools, t h r e e
P r o t e s t a n t c h u r c h e s . S a l a r y $2.160.00, v e r y g o o d “ s i d e l i n e s , ”
a t t r a c t i v e e a r n i n g s o n s t o c k . R e q u i r e s $11,5 00.00 i n v e s t m e n t .

W ! > D — 85 t o 120 s h a r e s o f t h e s t o c k o f o n l y b a n k , e a s t e r n
O k l a h o m a t o w n o f a r o u n d 1,000 p o p u l a t i o n o f f e r e d a t $125
— s u b s ta n tia lly b o o k value.
C a r r i e s s a l a r y o r $2,400 p e r
year, to g e th e r w ith w ell developed
s id e lin es.

H B D — S plendid o p e n in g fo r tw o m en, n o r th e r n O k la h o m a
city of o v er tw o th o u s a n d p o p u latio n , n o t o v erb a n k ed . G ood
s a la ry an d e a r n in g pow er.
S to c k re a s o n a b ly p riced.
R eq u i r e s $35 500 00

U S A — M a n a g e m e n t of o n ly b a n k , s m a l l g o o d w e s t e r n M isso u ri t o w n c a r r i e d b y s t o c k o ffered a b o u t h o o k v a lu e . S a la r y
$1,800. R e q u i r e s i n v e s t m e n t $10,000.00, w h i c h c o u l d b e r e ­
duced q u ite m a te ria lly th r o u g h d is trib u tio n of la r g e
und iv id ed profits.”

^ o u U r w ^ s t e r n 1 I o w a y t o w n P o f S1a r ( m n d °6f0 0 ° ^ e o p ^ ^ o f f e r e d ^ f o r

H I ’«IS— $13, 000.00 b u y s 61 o f t h e

aa nn ddUss ii dd ee ^1l ii nn ee ee aa rr nn iI nn g^ rs s ' aa P
b oo uiT
u t $$ 2%<
. ,» u0<
u u(f ^>er'
p e r 1yy ee aa*rj!.0
. w er’
H G A - L e a d i n g b an k , w e s te rn M isso u ri c o u n ty s e a t to w n de-

i n v o i c e v a l u e . B ìaTn vk Ì lhuaes d v R
e r y g o»o d e ?a r n i n« g h i s¿t oÌ rfyc. e T
S aÌ lK
a r ?y
$1,800.00. L a r g e c o m m i s s i o n s f r o m “ s i d e l i n e s . ”

c ee dS p r e s i d e n t In® a ^ f e w ^ e a r l ^ B a ^ k ’^ e ^ s R s ^ w e U o v e ?
m i lllbi no nn m
hh at ll ft - m
m ai rr kk .
R ee qq uu ii rr ee ss ii nn vv ee ss tt m
m ee nn tt oo rf P$21
$ z i, o500
u u . u00
T P B - —C a s h i e r s h i p o f g o o d b a n k , m o d e r n , c o u n t y s e a t t o w n
o f m o r e t h a n 3,000 p o p u l a t i o n c a n b e h a d b y a c c e p t a b l e
b a n k e r t h r o u g h i n v e s t m e n t o f $17 ,500.00. S a l a r y $200.00 p e r
m o n th .
K a n s a s L o c a tio n w ith sp len d id fu tu re.

O il A — A n i n v e s t m e n t o f o n l y s e v e n t y - s e v e n h u n d r e d d o l l a er ss t e w
p o s pi toi op nu l a it ni o no. n l yS a lbaar ny k a nidn
r nil 1M pi sus to u yr i° ut o wi nn oc fa sahbi oe ur st 250
c o m m i s s i o n s a b o u t $1,800.00. V e r y g o o d e a r n i n g p o w e r ,
K O B — $11,0 00.00 s e c u r e s

east central K ansas.
s i d e l i n e s a b o u t $600.

M IS R — O n l y b a n k , g o o d n o r t h A r k a n s a s t o w n o f 1,000 p o p u ­
latio n .
G ood sch o o ls a n d c h u rc h e s a n d c o n sid e ra b le in d u s t r i a l p a y r o l l . B a n k h a s $25, 000 c a p i t a l , u n u s u a l l y “ s t r o n g ”
b o a r d of d ir e c to r s , a n d e a r n e d 20% l a s t y e a r .
125 t o 165
s h a r e s o f f e r e d a t $15 5— p r a c t i c a l l y “ i n v o i c e v a l u e . ”
Cons e r v a tiv e b a n k e r c an be s u b s ta n tia lly
on th is
W P A — $11,250 s e c u r e s 75 s h a r e s o u t o f 350, c o n s e r v a t i v e l y
m a n a g e d b a n k i n W e s t e r n M i s s o u r i t o w n o f 700 t o 800
p o p u latio n .
C a r r i e s m a n a g i n g p o s i t i o n a t s a l a r y o f $1,800.
B a n k c ap a b le of e a r n in g m a te ria lly m o re th a n th e 1 2 ^ %
d i v i d e n d d e c l a r e d i n 1928. P r i c e a b o u t “ b o o k v a l u e . ”

F u rth er

D a ta


T h ese

100 s h a r e s

of good c e n tra l

c o n tro l of o n ly b a n k , s m a ll to w n ,
S a l a r y , $1,800.00, c o m m i s s i o n s f r o m

L C B — 56 o f t h e 150 s h a r e s o f s t o c k s p l e n d i d b a n k , e a s t
c e n t r a l K a n s a s , c a r r y i n g c a s h i e r s h i p a t $1,920 o f f e r e d a t
$300.00 p e r s h a r e — l i t t l e m o r e t h a n i n v o i c e v a l u e .
V ery
h ig h d iv id en d record.
G ood com m issions,
j j R A — S p le n d id n o r t h w e s t e r n M is s o u r i b a n k — o n ly b a n k in
good, s m a ll to w n in g o o d a g r i c u l t u r a l te r r i to r y , w e ll p o sit i o n e d a s t o m a r k e t s . S a l a r y $200.00 p e r m o n t h . H i g h e a r n m g ’ p o w e r o n s t o c k a n d u n u s u a l l y w e l l d e v e l o p e d “s id e
lin e s.”
E i t h e r 50 p e r c e n t o r 25 p e r c e n t o f b a n k ’s s t o c k
offered a t a p p ro x im a te ly “in v o ice v a lu e .”
E ith er purchase
c a r rie s m a n a g in g position.

O th er

O ffe r in g s ,

A d d ress

( S u c c e s s o r t o t h e C. C. J o n e s I n v e s t m e n t C o m p a n y )
C. E. GRECLAN, New Manager

210 W . 8 th S tre e t

K a n s a s C it y , M is s o u r i

C l i f f o r d D e P u y , Publisher

A rth u r

B ldg.,

G erald A. S n i d e r , Associate Publisher

VVm. Id. Maas, 1221 F ir st National B an k Bldg., Chicago, Vice-Pres ident

Central Western Banker, October, 1929
Federal Reserve Bank of St. Louis


u b l is h e d

O m aha,





u y


u b l is h in g


N ebraska

R. W. M oo rh e ad , Edito r

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

F r a n k P. Syrns, 2S W es t 45th Stree t, New York, V ice-P res ident


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Am id Surroundings o f Unsurpassed
Comfort and Elegance!

Visitors to this finely appointed, luxurious hotel acclaim
one o f the very finest resort hotels in Am erica. Refurnished,
redecorated and equipped with unsurpassed elegance, The
Elms will appeal to the most fastidious or most critical guest.

Here you can tone up your system, regain your health with
our world famous mineral waters and baths and if you wish,
enjoy all the pleasures o f resort life, golfing, swimming,
horse-back riding, boating, tennis, etc. For reservations or
beautifully done book, fully illustrating the beauties o f The
Elms and Excelsior Springs, write, wire or phone F. F. Hagel,
Managing Director.

_ _ _ _ _


One o f the WorldsM ost Tatnous M ineral Springs Resorts
Federal Reserve Bank of St. Louis
Federal Reserve Bank of St. Louis