Full text of Central Western Banker : September 1931, Volume 26, No. 9

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T h e Teller Tells the W orld 3

T h e Main Factors in a Bank’ s Success 4

Pueblo Bank Has Golden Anniversary 5

Restricted Management Trust
o f the Cumulative Type 7

19 3 1


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We
Welcome
Your
Account
and
Are
Glad

to be
of
Service
to
You

ìrst National
Bank of Omaha
SERVICE

FROM THE

DA YS O F GOLD D U S T

5

Central Western Banker, September, 1931

CENTRAL WETTERN LANCER
410 A R TH U R BUILDING
OMAHA
C l if f o r d D
G erald A. S
W

m

. H. M

V ol.

n id e r ,

aas,

Associate Publisher

R. W . M

oorhead,

eP uy,

Editor

Publisher
L. D. V a n D o r a n , Associate Editor J. A . S a r a z e n , Circulation Manager

1221 First National Bank Bldg., Chicago. Vice-President
F r a n k P. S y m s , 19 W est 44th Street, New Y ork, Vice-President
F r a n k S. L e w i s , 840 Lumber Exchange, Minneapolis
Subscription, 25 cents per copy; $2.00 per year. Entered as second-class matter at the Omaha postoffice.

26

N umber 9

SEPTEM BER, 1931

T h e T eller T ells the World
By C. W . FISH BAUGH
HE H O T summer days seem to bother the
most cold blooded. 1 always thought that
Oscar, the bank’s hired man, could stand
any degree of heat or cold. But when he re­
marked that the only comfortable way he could
think of posting was in a hammock, I came to
the conclusion that he was feeling the heat.
¿4 ¿4 ¿4
Recently, a chattel mortgage was recorded
that read as follow s: “ Grain on premises, farm
equipment, four mules and increase.” That’s an­
ticipating a lot.
yt
A banker told me this story about one of his
former employers. This particular employer
prided himself in the fact that he never forgot a
name or face. One day a man came in the bank,
who he was sure he ought to know, but couldn’t
place his face. So, when the man asked for his
balance, he inquired: “ Now just how do you
spell your name?” “ S -M -I-T -H ,” he replied.
“ Oh, sure, I know that,” said the banker, “ but I
mean your first name.” “ J-O -H -N ,” answered
the customer, “ and my name is John Smith.”
¿4 &
It is very interesting to note that the banks
below a quarter of a million dollars in deposits
are located in a small group of states. Over 50
per cent are in Illinois, Indiana, Iowa, Kansas,
Minnesota, Missouri, Nebraska and Texas— the
farming states. Which evidently shows that the
small banks still serve a purpose.
<¿4 ¿4 &
W e hear so much about speed and efficiency
that it is somewhat of a relief to see some fel­
low take life slow and easy and make a success
of it. Right now I can think of three men who
come rushing into the bank with all the speed
of a fast train, make you feel like you are about
the slowest mortal they ever saw and rush out
again. One is an insurance man, another the
town’s leading shoe shiner, while the third is the

T


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choir leader. On the other hand, one of the
town’s leading business men always has time to
visit and swap a story. I often wonder “ why
hurry” ? W e’re going to get there too quick, any­
way.
& ¿4
I note that the Northwestern National Life
quotes some interesting figures. Eight out of
every hundred families have incomes of $5,000
to $10,000, while 71 have incomes under $3,000.
The latter must be bankers.
■A & .A
Beulah, the stenographer, won the bronze lov­
ing cup for the best laugh of the week. W e had
just installed a new Ediphone and she was to
transcribe. The president wrote a letter saying in
part: “ Is there a judgment on the farm?” Beu­
lah wasn’t used to such work, but that was no
reason why she should write: “ Is there a Dutch­
man on the farm?”
<¿4 ¿4 ¿4
Vacation time is about over. But when the
boss takes his two weeks it’s two weeks extra
vacation for the force. Or so I gathered from his
remarks before he departed.
<¿4 ¿4
W e have one customer from whom we need
two signature cards. One when he’s sober and
the other when he’s drunk. W e rarely need the
first signature card now.
¿4 ¿4
Which makes me think now that cross word
puzzles have gone the way of all flesh, a new fad
for cross word enthusiasts should be the collec­
tion of check signatures. Personally, I would
like to have one of Henry Ford written on a
blank check.
<¿4 ¿4 ¿4
At a bankers’ meeting the question of small
loans was brought up. The chairman asked one
(Continued on Page 8)

Central Western Banker, September, 1931

4

The Main Factors
in a Bank’s Success
HE SUCCESS of any bank de­
pends largely upon two factors,
the proper attitude of the peo­
ple in its community ; second, the
proper management of the institution
itself. Our success in building sav­
ings, particularly, depends upon these
two essentials. When thrift is a defi­
nite conviction among a considerable
number of the people of any com­
munity, the marketing situation for
the savings department or bank is, to
a great extent, solved. It then remains
only for the bank to hold these de­
posits safely, to employ them prop­
erly, and to administer the bank effi­
ciently, so that continued public con­
fidence and continued growth are as­
sured. These are the ideal factors ; the
realities are frequently quite different.
I have suggested that thrift should
he a conviction with the public in
order to insure the success of the sav­
ings department or bank. By that I
mean that saving money should be
regular and habitual ; that the public
should regard ready cash in the bank
as among the indispensables. A sav­
ings account should constitute the first
line of defense, never to be used ex­
cept when unavoidable, and immed­
iately to be replaced as a safeguard
for the future. Once you have that
viewpoint established, you have done
a tremendous service to steady your
bank and its deposits, and to safe­
guard your depositors. You have, in
fact, done a great public service in
steadying the community economic­
ally.
W e are confronted today with the
greatest need for scientific savings
bank management in recent years.
The time is opportune for us to go
deeper into the fundamental aspects
of the savings business and to chal­
lenge everything we do from the set­
up of our organization and the inter­
est rates we pay, to our methods of
operation and of handling our funds.

T

I T IS time we begin to do some
* hard-headed thinking on savings
management problems. W hy should
two or three out of every five savings
accounts be carried at a loss? Why
should interest be paid on small sav( From an address before the M id-W est
Savings Conference at South Bend,
Indiana)


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Federal Reserve Bank of St. Louis

By CRAIG B. H A ZL E W O O D
Vice President, First National Bank
Chicago

ings accounts that show a loss year
after year? Is it sensible for manage­
ment to eliminate interest on unprofit­
able checking accounts and then con­
tinue to pay it on unprofitable sav­
ings accounts ? Should any banker
compound savings interest quarterly?

C raig B. H azlewood

Should interest be paid on those sav­
ings accounts having three or four
withdrawals every month, and which
plainly serve as checking accounts ?
What are the standards of personnel
efficiency to be expected in the opera­
tion of a savings department? What
are reasonable costs for savings tran­
sactions? Is it reasonable to measure
the exact cost of every transaction in
a bank’s commercial department,
place service and activity charges on
its checking customers, and then per­
mit 50 per cent of the savings ac­
counts to be carried at a loss without
even questioning the matter? Ought
we to be guided longer by tradition

in these matters, or ought we to act
courageously in solving these prob­
lems ?
Experience has shown that safety
and profits go hand in hand in the
banking business. When bankers ac­
quire the profit viewpoint, the intro­
duction of proper management meth­
ods follows largely as a matter of
course. It is a mistake to assume that
any bank can continue to be useful
unless it is first profitable with suffi­
cient reserve built out of earnings to
meet emergencies, and with adequate
income to employ the ablest manage­
ment.
A SOUND, profitable, liquid bank
fosters an independent spirit and
a sensible way of looking at unprofit­
able new business and unprofitable
services. It also develops in the com­
munity a healthy respect for the bank.
Quality savings business is one of the
secrets of profit in savings banking.
It costs money to handle and protect,
to receive, invest, and pay out de­
posits.
Banking is in evolution. Those who
favor the unit plan, the branch plan,
the group plan, the chain, are theoriz­
ing volubly on the advantages of a
particular system. Each finds in his
plan an element of safety as well as
efficiency which he sincerely believes
less abundant in other plans. It is
reasonably certain and definitely de­
sirable that some changes in our bank­
ing system should be made. But when
a whirlwind of public distrust de­
scends upon a community, what bank­
ing system is there which public sus­
picion will not attack equally with
blunt fear? The bank that has been
mismanaged, that has followed an un­
sound investment policy resulting in
greatly depreciated and frozen as­
sets, and whose earnings have been
inadequate, is like one stricken with
the plague; all others that are asso­
ciated with it in any way find them­
selves regarded with distrust.
W e must go to the root of the mat­
ter. W e must check unsound banking
practices in their very beginning. Par­
ticularly in our savings institutions
and departments we must build what
no storm can shake— and then we
must develop the proper public view­
point upon the entire subject of sav­
ings.

5

Central Western Banker, September, 1931

pueblo

as
Çolden o^/nniversar y

T

he

w estern

n a t io n a l

BANK, a Pueblo, Colorado, in­
stitution for 50 years, cele­
brated its 50th anniversary August
15. The bank was incorporated in the
summer of 1881 at the time of the
construction of the C. F. & I. Co.
Necessity for large banking facili­
ties for the employes of the new mills
prompted William L. Graham, at that
time cashier and assistant treasurer
of the Colorado Coal & Iron Co. and
a former banker in New York, to
suggest to his associates the organiza­
tion of a national bank on the South
side of Pueblo.
Charles B. Lamborn, president of
the Colorado Coal & Iron Co., his
brother, Robert L. Lamborn, noted
philanthropist and capitalist of New
York city and Philadelphia; Miss
Helen Taylor and her brother, Lowendes Taylor, daughter and son of a
noted author and former United
States minister to Turkey; Bayard
Tayor, William A. Bell, capitalist of
Colorado Springs; all took stock in
the bank together with William L.
Graham, Appleton H. Danforth,
Daniel N. Jones, Harry S. Van Keuren, James K. Dempsey, L. J. Taylor,
who were all officers and employes of
the Colorado Coal and Iron company,
and Joseph W . Gilluly, then cashier
of the D. & R. G. railroad.
Application for a charter was made
July 15, 1881. July 25, 1881, the fol­
lowing were elected as directors:
Charles B. Lamborn, Joseph W . Gill­
uly, Appleton H. Danforth, William
L. Graham and Harry S. Van Keuren. William L. Graham was ap­
pointed president and Charles B. McVay of Pittsburgh, cashier.
T 'H E
O R IG IN A L charter was
^ granted August 2, 1881, by Comp­
troller of Currency John Jay Knox
and the bank opened for business on
August 15, 1881, with a capital of
$50,000, and two employes, Charles
B. McVay, cashier, and Henry M.
Keasbey, teller.
September 12, 1881, Charles E.
Saxton entered as an employe and in
January, 1882, he was elected as one
of the directors.
Increase of business was phenom­
enal for those days and the first state­

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Harlan J. Smith entered as an em­
ment, published within six weeks
after opening, showed deposits of ploye in 1888, remaining with the
$182,000, with cash and United States bank till 1897.
In January, 1893, the three cities of
bonds on hand sufficient to pay all de­
Pueblo, Central Pueblo and South
posits.
In April, 1882, W. R. Samuel was Pueblo having consolidated, by order
employed as bookkeeper. Later A. L. of the comptroller of the currency,
Price was added to the force and H. the bank’s name was changed to the
M. Keasbey removed to New York Western National bank.
On the same day that the Western
city.
In the spring of 1883 the need for National Bank opened for business
larger and better banking rooms was the South Pueblo National Bank
overcome by the renting of the corner opened at the northeast corner of C
of C and South Union. The vault of and South Union, later changing its
name to the Central National Bank of
cement reinforced with steel rails,
was built by a gang of steel works Pueblo.
In 1898 the capital of the Western
bricklayers, under the direction of
William L. Rees, now county com­ National was increased to $100,000
missioner. There the bank continued and it took over the assets of the
in business until June 1, 1915. The Central National by consolidation of
rooms were enlarged and improved in interests. B. B. Brown was made
the winter of 1890 and 1891 and the president, W. L. Graham, vice presi­
dent and Charles E. Saxton, cashier.
finest mahogany fixtures then obtain­
In 1901 a renewal of charter was
able were installed under the super­
granted and in 1907 Pueblo was made
vision of George A. Newton.
a reserve city, which permitted Pue­
In the spring of 1886, Charles B.
blo banks to act as depository of the
McVay resigned as cashier and the
reserve of other banks. In the same
offices of the Colorado Coal & Iron
year the Western National added to
Co. were removed from Colorado
its facilities by the opening of the sav­
Springs to Pueblo and W. L. Gra­ ings department, paying interest on
ham, as treasurer and cashier of the savings accounts. In 1914 with the es­
company, gave part time to the bank’s tablishment of the federal reserve
affairs.
system this bank took stock and en­
In October, 1886, Saxton was tered as a member of that system.
elected as cashier, which position he
has since continuously filled.
TUNE 1, 1915, the bank rented its
present quarters in the Amherst
A T TH E commencement of busi- building on Main at Second, formerly
ness in 1881, accounts were occupied by the Mercantile National
opened at the First National Bank Bank, and its deposits, then $667,000,
of New York and First National soon increased to $1,000,000.
Bank of Chicago, and they have con­
B. B. Brown, its president for 20
tinued as depositories for this bank years, died in April, 1918, and George
for 50 years.
F. Trotter, having taken over Brown’s
In 1887 with the building of the interest, was made president of the
Missouri Pacific railroad into the city, bank and has conducted its affairs
S. H. H. Clark, the president of the
since that time. At the same time, exroad, and S. H. Mallory, one of the
Senator Alva B. Adams became one
firm of Fitzgerald & Mallory, who
of the directors and upon the retire­
built the road, both became share­
ment of W . L. Graham in 1924, was
holders in the bank. About the same
time Gov. Alva Adams bought stock elected vice president.
In July, 1921, its second renewal
and served as a director from 1889
to 1904. Also George A. Newton and of charter was granted and the fol­
Whitney Newton became sharehold­ lowing year it was extended for 99
ers. George A. Newton was elected a years.
In 1921 Dr. William Senger be­
director, serving until his death in
December, 1892, when Whitney New­ came a stockholder in the bank, being
elected director in January, 1922 and
ton succeeded him.

6

Central Western Banker, September, 1931

serving since as one of the vice presi­
dents.
In 1925 Frank S. Hoag was elected
a director and continued until the fall
of 1930, when he resigned, still hold­
ing his stock and remaining interested
in the bank.
Present directors are: Alva B.
Adams, G. F. Trotter, Dr. William
Senger, Charles E. Saxton and H. M.
Mertz, with G. F. Trotter, president;
Charles E. Saxton, cashier; H. M.
Mertz, E. E. Musick and M. C.
Hodges, assistant cashiers; bookkeep­
ers, C. O. Sorenson, O. L. Daniels
and John E. Brooks; remittances,
Harold E. Gilbert; statement clerk
and safety boxes, W. R. Samuel;

stenographer, Catherine C. Vorisjand
messenger and listing clerk, I. J.
Biggs constitute the force who gave
attention to the details of bank af­
fairs.
To Pay 20 Per Cent Dividend

C. W. Hookway, receiver of the
American National Bank of Redfield,
South Dakota, which closed last fall,
announces that the bank is ready to
pay 20 per cent of the money as the
first dividend, which will amount to
$90,000. Almost a half million dollars
was tied up in the bank last year and
the officials are trying to liquidate it
as quickly as possible to help the
farmers.

Issues Effective House Organ

The illustration below is a repro­
duction of the first page of a fourpage house organ issued monthly by
the First National Bank of Holdrege,
Nebraska.
Three of the pages are divided into
departments which very effectively
advertise the various services of the
bank. Page four is a full page adver­
tisement of the bank itself.

S P O N S O R S H IP

. . . is important

O

ther

things equal, there is sub­

stantial advantage to the investor
in choosing the shares of a fixed trust
sponsored by an organization of long
experience in the trust field; which
knows the practical needs o f shareholders and how
to provide for them; which is actively creating
wider markets and reputation for the shares.
The organization which sponsors Corporate Trust
Shares is a pioneer in its field and is one o f the

In commenting on this service, the
bank officials remark as follow s:
“ W e have used this form of adver­
tising for over a year and a half and
have found it very effective. W e have
a mailing list of 3,000 names which
covers every household in our town
and every rural boxholder in our
trade territory.”

largest devoted exclusively to the creation and

Suits Dismissed

distribution of investment trusts o f the fixed type.

Suits of 59 depositors in the de­
funct Farmers bank of Elkhorn,
South Dakota, to collect amount of
their deposits totalling about $425,000
were dismissed Wednesday in Shelby
county district court in Harlan by
Judge Kenneth R. Cook.
These depositors sued partners of
the defunct bank as individuals.
About $11,000 costs and copy fees
were involved in the actions and this
matter was continued.
Judge Cook ordered the property
of partners in the bank impounded to
be held subject to court order and
disposition of bankruptcy proceed­
ings.

Ask your Investment House or Bank about

CORPORATE
TRUST SHARES
SMITH, BURRIS & CO.
Central Syndicate Managers

120 S o u t h L a S a l l e St r e e t , C h ic a g o
DETROIT — NEW ORLEANS — OMAHA


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7

Central Western Banker, September, 1931

Restricted Management Trust
of the Cumulative Type
N JUNE 1, 1928 there were
195 investment trusts of all
types in existence in America.
By June 1, 1931 this number had
jumped to 648. The permanence of
the soundly constructed investment
trust in our financial life is assured.
The public has been educated to and
has accepted the basic principle of the
investment trust diversification.
Investment trusts differ widely.
Some are trading companies, buying
and selling many types of securities
with few or no restrictions. Others
have done away with the management
factor altogether and have substituted
for the personal equation a reliance
upon mechanical operation and a re­
markable faith in the permanence of
a few stocks as sound investments.
Still others have combined some of
the features of these two classifica­
tions.
Within recent months we have wit­
nessed a most important trend in
fixed trust growth— one destined to
alter its future course more radically
than any previous development.
This trend is always from the rigid
type of fixed trust toward a type
which, while adhering to the fixed
trust principle, seeks to provide a
flexibility in respect to elimination
and substitution of the underlying se­
curities. This type of trust is called
the “ restricted management” or “ semi­
fixed.”
I believe a semi-fixed trust is far
superior to the rigidly fixed type.
Fixed trusts were given a fairly ade­
quate test in Great Britain banks in
the period of 1880-1900, and the re­
sults were so disappointing that this
type of trust disappeared from the
British financial markets. And, so far
as I know, we in America have not
yet discovered any invariable statisti­
cal rules governing investments which
result inevitably in handsome profits
to the purchaser.

O

T 'H E FACT that a given company
has certain assets and earnings and
that these have been maintained

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Federal Reserve Bank of St. Louis

By C. B. K LO PPE
President, C. B. Kloppe & Co.
D es M oines, Iowa

(within certain reasonable limits)
over a long period of years -— this
(and other statistical data like it)
does not prove that the company’s
record in the coming years will be as

C. B. K loppe
good. The record of the past must be
coupled with sound judgment in the
interpretation of what has happened
and clear foresight as to how future
conditions will differ, if at all, from
past conditions. Statistical data must
be combined with human intelligence
to insure a reasonable degree of
safety.
The fixed trust, by its very nature,
denies this general idea, which I con­
sider of supreme importance. The
semi-fixed trust, or restricted man­
agement trust permits the introduc­
tion of a reasonable amount of intelli­
gence (management) and yet safe­
guards the shareholders’ interest by
closely restricting the management.
Most fixed trusts are absolutely

fixed as regards to the sale of securi­
ties in the portfolio, except that the
trustee must sell within a stated time
any stocks on which dividends have
not been paid during a stated time.
Therefore, as long as a stock pays
some dividends the trust retains it
even if it has lost its investment
merit.
Let me cite an actual case along
this line:
A certain “ restricted management”
trust was formed in 1924, which to
date has had a phenomenal record.
In the portfolio was included a blue
chip stock which was a very attrac­
tive investment at that time. A few
years later it had lost its investment
merit and was sold out at about $100
per share when it was still paying $8
dividend. Today this same stock is
selling at about $12 per share, paying
$1 dividends. Had this trust been a
rigidly fixed type this stock would
still be in the portfolio for it could
not be sold until the dividend was
passed entirely.
V \JH E N a stock is finally eliminated
V in a fixed distributive trust the
trustee must distribute the proceeds
from the sale of the stock to the
shareholders, but in the case of a
cumulative restricted management
trust the money is not distributed but
is re-invested in the remaining stocks
in the portfolio. This is why it is
called “ restricted management.” The
management cannot invest in any
stock that is not already in the port­
folio, so the shareholders know at all
times exactly in what stocks their
money is invested, which is not true
of a full management trust or trading
company for the management can in­
vest in any stock.
Cumulative type trusts are becom­
ing more popular, in fact one state
has already enacted a law prohibiting
the sale of distributive type trusts.
There is nothing seriously wrong
with a distributive type trust return­
ing to an investor a part of his capital

8

Central Western Banker, September, 1931

in addition to the ordinary dividends
paid out of earnings, but if this is
done the investor should understand
that the high rate of return not only
represents earnings from his capital,
but also a return to him of part of
the capital itself. It is quite obvious
that persistent repayment of capital
may result in such a reduction of his
equity that the capital remaining in
the trust may show a declining rate
of earnings, or at least the whole ten­
dency of the distributive feature is to
prevent any large building up of the
trust capital.
The distributive feature will tend
continually to reduce the amount of
the trust capital invested in the best
stocks and maintain the amount in­
vested in stocks of companies which
are not enjoying a rapid growth in
business, earnings and capital assets.
W hy? The companies which are mak­
ing rapid progress are always the
ones which declare large stock divi­
dends and split up their shares; the
companies which are standing still as
regards growth and earnings cut no
large melons and seldom change their
capitalization. Thus the distribution
of the proceeds of stock dividends
and extra shares received through
stock split-ups results in the return
to the investor of part of his most
profitably
invested
capital.
This

process of dilution tends continually
to diminish the amount of capital in­
vested in the most prosperous com ­
panies, while the amount of capital in
the others remains stationary.
rP H IS is the vital weakness of the
A distributive trust, and it is not
eliminated by giving the shareholder
the right to reinvest the capital re­
turned to him by purchasing addi­
tional shares. After each return of
capital, the trust share is weaker be­
cause a part of its cream has been
skimmed off and paid out. Why, then,
should the investor use this dividend
of “ cream” to buy additional shares
of the “ skimmed milk?”
Cash reserve fund with fixed cou­
pons seem to have had their day, and
I think it has been merely a device to
fool the investor into thinking that he
is getting insurance — the assurance
that dividends will not be reduced
below a fixed minimum — without
paying for this insurance.
As a matter of fact, the trust share­
holder pays for his “ insurance.” He
is merely putting part of his capital
aside as cash and on this cash he
either gets the savings bank rate of
return, or in some cases none at all.
1f the dividends available for his
fixed trust shares fall below the
stated minimum, then the deficit is

made up out of the cash reserve. His
investment has failed to yield the
stipulated return; so he uses some of
his capital to make up the difference.
The fixed trust idea assumes that
high grade common stocks are a more
profitable investment than putting
money into a savings bank. Then why
use part of the investors’ money to
run a savings bank account? Why not
invest all the money in stocks and
then if the investor finds at any time
that he must use some of his capital,
he can get it by selling a part of his
trust shares?

Interest Payable Semi-Annually at the
CHICAGO TRUST CO., Trustee

A^NOTHER feature that is becom­
ing more popular in investment
trusts is a broader diversification and
not limiting a portfolio entirely to A
rated stocks, but investing a small per­
centage of the funds in stocks of com­
panies which have potential possibili­
ties and the makings of an A rated
stock.
In brief, a restricted management,
cumulative trust works for the share­
holder in the same way as though an
investor were to purchase outright a
certain number of stocks and put
them in his safety deposit box, cash
all dividend checks received, sell off
stock rights, but upon receipt of a
stock split-up, which is a return of
part of the principal, placed the addi­
tional shares with the others in the
safety deposit box, and at any time he
saw that one of the stocks was losing
its investment merit he sold it, but the
restriction is that he can only re-in­
vest the proceeds in the stocks of the
companies that are already in the list.
One can easily see the advantage of
buying the trust shares and not the
underlying stocks outright, for the
investor is freed from these innumer­
able details.
In conclusion, a restricted manage­
ment trust of the cumulative type
with no cash reserve fund combines
the most simple investment features,
and the permanency and future
growth of this type of investment
trust is assured. The largest invest­
ment trust of this type is now outsell­
ing any fixed trust. This shows which
way the wind is blowing.

A non-speculative investment, secured
by Automobile Installment Paper not
affected by market fluctuations

THE T E L L E R TELLS THE
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Collateral Trust Gold Notes
IS S U E D

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ATLAS SECURITIES COMPANY
of Illinois
A “ Lewis E. Bower” Corporation
Automobile Bankers Since 1912

Maturing from 6 months to 5 years

Correspondence solicited from

Banks, Insurance Companies, and Distributors
W . L. T A Y L O R , Executive Vice-President


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Federal Reserve Bank of St. Louis

59 West Wacker Drive, Chicago
W e handle only our own securities

(C ontinued from Page 3)

of the bankers: “ Now, Mr. Smith,
what would you do if Mr. A came in
and asked to borrow $25 for a week?”
The old fellow replied in all serious­
ness : “ Let him wait a week and he
wouldn’t need it.”
Which, after all is said and done, is
worth thinking about.

9

Central Western Banker, September, 1931

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Federal Reserve Bank of St. Louis

Des Moines

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10

Central Western Banker, September, 1931

Oscar, the hired man in the bank,
pulled another high score the other
day. He said: “ What’s the use of
looking for a balance every night?
I’ve got an idea that will always make
the worst set of books balance.” W e
were willing to listen. “ Add the debits
and credits all together and then di­
vide by two and you can’t be off.”
(Yes, darn it, the paper weight
missed him by a short inch.)
¿8 «¿8 &
Here in “ Ioway” the lawyers tried
to pass a law to prohibit banks from
practicing law. The bill was killed.

But I believe a good counter bill
should be suggested to stop lawyers
from making money. That’s the bank­
er’s job.
¿8 ¿8 S

¿8 ¿8 ¿8
A chairman at a bank meeting was
speaking of the value of co-opera­
tion between directors and officers.
He remarked: “ The one-man bank is
a thing of the past. Now is the time
for directors and officers to co-oper­
ate. And it’s up to the officers to see
that they do.”
At the end of the speech one banker
arose and remarked: “ Mr. Chairman,

The September
Horoscope . . .


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Federal Reserve Bank of St. Louis

your speech is all very true, but how
in H— are you going to get co-opera­
tion from your directors when your
wife, mother-in-law, brother and cou­
sin are the board of directors?”

p R I D E and selfishness are the two great faults of
September born folk.
Nevertheless, people of this month are invariably
clever, and they are blessed with so many talents
that success is open to them in almost any field of
work they choose. In finances they are keenly
shrewd, and when they speculate they can be relied
upon to get good returns for their money.
Originality is strongly marked in September peo­
ple, and inasmuch as the world pays a long price for
originality, you should make the most of this trait.
The Sapphire should be worn con­
stantly, and your dress attire should
have either scarlet or light blue in its
make-up.
If you are in the life insurance busi­
ness but not now under contract you
should by all means investigate the
Royal Union’s agency proposition. Seek
success and you will find it with us.

ROYAL UNION LIFE
INSURANCE COMPANY
DES MOINES, IOWA
A. C. TUCKER, Chairman of the Board
J. J. SHAMBAUGH, Pres.
B. M. KIRKE, V. P. and Field Mgr.
W. D. HALLER, Sec’y

Which makes me think of the Ohio
bank that recently purchased a good
supply of arms for protection against
holdups. At the next meeting, the
board passed a resolution forbidding
the employes to use the guns. That is
co-operation.
¿8 ¿8 ¿8
It is worth noticing that all but one
of the eleven Canadian chartered
banks have pension funds for officers.
The fund comes from the contribu­
tions from officers and from the bank
itself, and from profits on the invest­
ments of the pension fund. Some of
the larger banks have funds that run
as high as eight million.
Now, don’t every one resign and
rush to Canada.
«¿8 ¿8 «¿8
And that reminds me of the old
story of the bond salesman who saw
the well-known advertising sign :
“ Drink Canada Dry.” The bond sales
man had had at least one too many.
He looked at the sign and mumbled :
“ It can’t be done! It can’t be done!”

Ask Speed in Settlement
Four members of a committee rep­
resenting depositors in the failed
Elkhorn Valley bank at Stanton, N e­
braska, accompanied by State Rep­
resentative Paul Bruveleit of that
place, were at the capitol recently to
urge Governor Bryan that action be
taken to wind up the bank receiver­
ship, which has already been in prog­
ress two years, as soon as possible.
The committee informed the gover­
nor that matters are dragging along
in a manner unsatisfactory to the de­
positors, who fear that the remaining
assets may be largely dissipated in
expenses if the receivership should
continue any length of time.
George I. Parker of Newcastle, a
member of the old guaranty fund
commission, is acting as receiver of
the Elkhorn Valley bank. So far, the
depositors have received 40 per cent
of the amounts due them. It is esti­
mated that another 10 per cent could
be paid from the salvage still avail­
able, making 50 per cent in all.
In the party that saw the governor
were W . E. Chilcoat, L. C. Schwenck,
Emil Entermen, and D. C. Spangler.

11

Central Western Banker, September, 1931

-, - IApplication
N S Uto theRBanking
A N¥raternityfi^
CE^
The Fallacy of Bank Depository Bonds
HE CH ASE for depository
bonds is still on and in this vici­
ous squirrel-cage both bank and
surety company have come to serious
grief. Over 1,400 banks have failed
in 1930 and they are still counting the
closed institutions in 1931, and the
exact figures guaranteed by surety
companies in these closed institutions
is unknown, but the amount is stag­
gering.
It is serious enough to have some
apprehension over the soundness of
the insurance company now offering
the depository bond, and yet, why
should the bank be concerned over
the surety company as to its solvency
when the demand is made by the state
or city for funds deposited in the
bank that the bank buy and pay for a
depository bond. And for the premium
charged by the insurance company,
how can the company afford to audit
or investigate the bank as to its sol­
vency and be constantly informed as
to withdrawals and a depletion of re­
serves that suddenly causes the bank
Commissioner to place a sign on the
door of the bank— “ Closed to Protect
the Assets of the Bank.” The prem­
ium is not and cannot be made large
enough to permit the surety to so in­
vestigate the bank under considera­
tion as to its condition, so other
methods are used.
A story is told of a bank president
who was a director in a surety com­
pany as well as being an officer and
director of several smaller banks. He
was asked in confidence by his surety
company associates just what the fin­
ancial condition was of the small
banks in which he was interested, and
even though the situation was deli­
cate, he felt that he should recom­
mend the surety company to write the
depository bonds. He was “ put on the
spot” but could not give his hand
away. One morning six banks closed
their doors, and the surety company
was called upon to pay several mil­
lions of dollars on the depository
bonds written.

certain surety company, and if it was
not obtained, to withdraw the lodge
deposit. The smaller banks not being
able to obtain a depository bond are
now claiming that the big banks are
working with the insurance com­
panies against their downfall. The
third largest bank in the middle west
could not get a depository bond last
month because the “ market” was full
up. A merger was announced and the
insurance companies had a line on
both banks involved in the merger
which meant a concentration of risk
greater than the desired line any one
company could accept. The dear pub­
lic hear part of the story and then get
fearful for someone said they could
not get “ insurance” on the bank in
question.
A trip to New York was made by
the writer in July to obtain a deposi­
tory bond for a bank in excellent
shape, and as additional inducement,
offered the personal guarantee of two
men worth well over fifteen million
dollars to the surety company who
would write the bond for $200,000
protection of state funds. Every com­
pany worth while was tried and the
answer was NO. Some said they had
withdrawn from the field, others that
they were not writing any bonds in
the entire state. The feeling is bad,
even between insurance companies,
and it is freely stated that several
companies will not be able to get by
December 31st when they make their
annual statement and replenish their
depleted reserves. There is not a
single branch office or agent in the
country authorized to execute a de­
pository bond without the home office
going into the present position of the
bank under consideration, and then
giving its authorization to the branch
office or agent. The next and really
serious task is obtaining re-insurance
from other companies, for no surety
company today carries the entire risk.

/\ LODGE recently circularized its
v entire membership, stating that
each local treasurer should demand
of the bank a depository bond in a

A F E W principles of underwriting
used by the insurance companies
are not amiss. The particular bank
must render a complete financial


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

By H Y SCARBOROUGH, J r .

statement, giving detailed informa­
tion as to the bank’s assets, distribu­
tion of the stock of the bank, its cor­
respondent banks, and to the bank’s
assets, distribution of the stock of the
bank, its correspondent banks, and
other connections. The more detailed
the information about securities to all
loans, and also the bond account, the
better. The character of the deposits
is considered. Banks having more
than a certain percentage of their de­
posits (25% is the general rule) made
up by public funds are not considered
desirable risks due to the fact that
political changes might bring about
sudden withdrawals of funds. Of
course the character and management
of the bank, as well as its past his­
tory, plays an increasingly prominent
part in the acceptance of the risk;
and if it shows a consistent decrease
in surplus or a falling off in deposits,
the insurance company will ordinarily
reject the risk. Locality has been a
factor, but after that mess in New
York City, the underwriters are not
giving so much thought to the loca­
tion of a bank. However, if there
have been several banks failed in a
given community, it is going to be
difficult for the perfectly good and
sound bank to convince the insurance
company that their doors will remain
open. The bond forms are having
recent changes instigated by the in­
surance companies for their further
protection, and the various states
where the depository bond is pre­
scribed to protect public funds have
taken some of the teeth out of the
contract— there being no other alter­
native.
An interesting development at the
moment is the unusually heavy de­
mand by depositors of private funds
for depository bonds. These bonds
are issued without the knowledge of
the bank, and the premium for such a
bond is usually double that charged
for bonds issued on the bank’s appli­
cation. All companies are demanding
the five-day cancellation clause, and,
of course, the bond is written for the
maximum amount of funds on de­
posit. If it is not, the company is.
liable for such proportion of the bond
as the limit of the bond bears to the

Central Western Banker, September, 1931

12

total net deposit. If the amount of the
deposit exceeds the amount of the
bond, there is the usual clause for a

WILL

OUR
BE M A I L E D

pro rata distribution of the salvage,
and this is often a point of combat,
At the issuance of the policy, a

OF FERI NG LIST
REGULARLY UPON

REQUEST

G M A C obligations
en joy the protective background o f highly
liquid assets, with credit factors widely diver­
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they have been purchased by individuals, institu­
tions and thousands of banks the country over.
available in convenient maturities and
denominations at current discount rates

G eneral M
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cceptance
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I N

otors

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P R I N C I P A L

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Executive Office - B r o a d w a y at 5 7 t h S t r e e t - Xew T or\ City

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175 W . JACKSON BOULEVARD

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Insurance Counselors to Banins
j A most important subject is the bank’s own insurance, and the !
program to fit the particular case should be planned by those who
I know.

j


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Federal Reserve Bank of St. Louis

Write to us about your insurance problem

premium figured on the maximum
amount of the bond is due and pay­
able, and at the close of the contract
period the premium is adjusted in ac­
cordance with the bank’s average
daily balance for the period. The min­
imum premium is one-half the annual
premium on the amount of the bond,
regardless of the average daily bal­
ance.
As of January 2nd, new rates were
established that will be of interest to
all banks. The ruling on life insurance
funds and fraternal orders is classi­
fied as public funds and, as hereto­
fore, all private funds carry a one per
cent rate. The new rates are fixed by
the capital of the bank only, banks of
less than $50,000 capital pay a rate
of $10 per thousand. Where the capi­
tal is $50,000 and less than $100,000,
the rate is $7.50 per thousand. $100,000 and less than $200,000, the rate is
$6.00 per thousand, and where the
capital is $200,000 or over, the rate is
$5.00 per thousand. Patience on the
part of both banker and surety com­
pany is required during these testing
times, and if the banker can show
that the chances will be about 95 per
cent for his bank remaining open all
business days during 1931 (holidays
excluded) the underwriter way up on
the 46th floor of some building near
old Broadway will authorize his bond,
but you must realize that the under­
writer in this case must pass upon
the solvency of banks over the entire
country, and most of these underwrit­
ers are from four to six weeks behind
in their work. Confidence is estab­
lished not without some right effort.
Royal Union Shows Progress

B. M. Kirke, vice-president and
agency manager of the Royal Union
Life, reports very satisfactory prog­
ress for that company since the con­
solidation of the Des Moines Life
and Annuity and the Royal Union
Life. The agency force is producing
business with consistent regularity,
said Mr. Kirke. July’s production fig­
ures exceeded June’s by one quarter
of a million— reaching the total of
$1,750,000.
Fortunately, when the Des Moines
Life and Annuity and the Royal
Union Life were merged, one of the
attractive and stabilizing features of
the consolidation was the lack of
many agency conflicts. This was un­
usual in view of the fact that both
companies had been writing the larger
portion of their business in the Mis­
sissippi Valley. The natural merger
of the agency forces made it possible
for the company to go ahead with a
constructive development program in­
stead of untangling conflicts. A new
rate book has been issued which in­
cludes figures on attractive policies

Central Western Banker, September, 1931
new to the agency forces of either
company before the merger.
The Royal Union Life, of which J.
J. Shambaugh is president, has a
bright future ahead of it. The agency
force is loyal and well directed, the
company is confining its activities to
states in which it already has well or­
ganized agencies, and it shows a well
balanced financial statement. Insur­
ance in force totals over $190,000,000.
Assets are $40,000,000, and the com­
pany’s capital and surplus, including
contingency reserve, is approximately
$3,000,000— which is all surplus as to
policyholders.
Consolidate Insurance Companies

C. O. Talmage of Omaha has an­
nounced that the business of C. O.
Talmage and C. O. Talmage Co., re­
lating to insurance of all kinds, the
purchase and distribution of insur­
ance securities, ownership and man­
agement o f insurance companies, has
been consolidated under the name of
General States Insurance Corpora­
tion, of which Mr. Talmage is presi­
dent. The headquarters of the corpor­
ation are in the Arthur Building, 210
South Eighteenth Street, Omaha,
Neb. The General States Insurance
Corporation will have a wide organ­
ization with connections in the larger
cities of the country.
Mr. Talmage for many years was
secretary of the Columbia Fire Insur­
ance Co. of Omaha and after its re­
insurance by the National of Hart­
ford was manager of the Columbia
Fire Underwriters until a few months
ago. He has recently organized a gen­
eral agency, representing several com­
panies in Nebraska and adjoining
states.
Appoints Receivers

Instead of naming local applicants
at Omaha and elsewhere as acting re­
ceivers of banks which recently failed
in those communities, men who have
had previous experience in handling
such institutions and shown their
ability to convert assets into money
for the benefit of the depositors are
being given the preference for those
positions.
A list of nine appointments as
agents in charge of banks that have
closed their doors during the past two
weeks was announced by Governor
Bryan. All of those assigned to take
charge of the suspended establish­
ments were chosen from a list of
men heretofore employed for such
duty. They are :
George E. Hall, Lincoln. State
bank of Omaha.
A. J. Barak, Petersburg. South
Omaha State bank, Omaha.
J. E. Haase, Norfolk. Farmers &
Merchants bank, Benson.

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Federal Reserve Bank of St. Louis

13

W. M. Whalen, Lincoln. First
State bank, Pleasant Dale.
L.H. Reif,
Bloomfield. Leigh
T.
J. Brozek,
Chadron. Bruno
State bank, Bruno, Bank of Brainard,
Brainard.
J. C. Wisda, Ord. Butler County
State bank, David City.
E. E. Ruzicka, Schuyler. Dwight
State bank, Dwight.
C. A. Lau, examiner in charge,
Union State bank, Omaha.
“ These are important posts and
need to be filled by men who know
the work,” said Governor Bryan.
“ Having in mind the interests of the
depositors, it is deemed advisable to
utilize the services of the most expe­
rienced and efficient ones on the
banking department’s staff than to

appoint local people as assistant re­
ceivers who may or may not prove
qualified for the jobs.
“ These men have been in service
for some time and have shown their
capabilities for disposing of assets so
as to realize the largest amounts of
money for the depositors.
“ Many requests have come from
the different communities, especially
from Omaha, to have this or that
local man appointed. Yesterday’s mail
brought twenty-five letters from
Omaha in support of a particular ap­
plicant, and a number of other letters
and telegrams in his behalf had been
received the day before. However, I
believe the welfare of the depositors
will be better served by putting a
trained assistant in charge.”

Right at the nation’s elbow
The

Am erican

public looks on

Bell System investors know that

the telephone as almost standard

behind their securities is a pro­

In

gressive concern, selling an es­

the h om e, "telephones wherever

equipment

for

office

desks.

sential service. T h e y know that

needed” is the modern idea. A n d

regular dividends have been paid

away from business and residence,

for 50 years.

people have learned to depend on
the ever handy public telephones.
In

making

available

the

service
Bell

increased telephone

so

easily

System

has

use and di­

versified its sources of

BELL

revenue.

The

System ’ s

surplus,

its

margin of safety, is invested in
telephone property for the pro­
tection o f the service.

May we send you a copy o f our
booklet, Some Financial Facts’ ’?

TELEPHONE

S E C U R I T I E S CO.
195 Broadway, New York City

In c .

14

Central Western Banker, September, 1931

^ltllHII1IIIIIIJIIIIIIIIIIIIIIHHIIIIIIIIIIIIIIIIIIIIIIIIIIIII|||||||||l!IJItlll||IMIIIIIIIIIIIIIIHIIIinilllllllllllll1llllllllllllllllllllllltllllinillllllllllll!llllllllflllin

Omaha Banks
Solve Banking Crisis
Following the closing, within a
week, of four state banks, the Omaha
banks on Saturday, August 15th, ex­
perienced an unusual demand for de­
posits from depositors who had been
suddenly alarmed.
The banks met the situation by pro­
viding extra service for the with­
drawal of funds, and after a day not
without its worries, the situation was
cleared. Most of the deposits that had
been withdrawn came back to the
banks, a certain portion, however,
finding their way into the postal sav­
ings bank.
The previous Monday morning the
State Bank of Omaha, of which A.
L. Schantz was president, did not
open for business. Heavy withdrawal
of deposits, together with deprecia­
tion of some of the bond holdings,
had been experienced, and the bank
was turned over to the state depart­
ment of trade and commerce for liq­
uidation.
As a result of the closing of the
State Bank, the Farmers and Mer
chants Bank of Benson, an Omaha
suburb, was also forced to close. It
had a heavy deposit in the StaU
Bank.
Benson depositors and stockhold­
ers, however, have been holding a se­
ries of meetings with George W.
Woods, of the State Banking Depart­
ment, with a view to reorganizing and
reopening their bank.
The next day the South Omaha
State Bank, John S. McGurk, presi­
dent, was forced to summon state o f ­
ficials. Following the closing of the
other banks it, too, had suffered ex­
cessive withdrawals of deposits.
A similar drain upon the Union
State Bank, F. C. Horacek, president,
resulted in its directors also closing
the bank, to guard the interests of
loyal depositors. The banks were thus
caught in a situation which made

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Federal Reserve Bank of St. Louis

them helpless due to the unreasonable
fears of depositors.
The closing of the Union State
Bank was the occasion for the lob­
bies of the larger banks, the Omaha,
First and United States National
banks downtown, and the Packers,
Livestock and Stock Yards National
banks in South Omaha, being the
scene of lengthening lines of deposi­
tors withdrawing funds.
To meet this demand and reassure
the depositors, the banks quickly de­
cided that instead of closing at the
usual hour of 12 noon, they would re­
main open as long as any depositor
wished to withdraw his account. So
through Saturday afternoon, and in
some instances until 9 o’clock that
night, the banks remained open.
In the Omaha National customers
waiting in line were served sand­
wiches and lemonade, and this also
helped restore good humor and con­
fidence.
The Omaha Clearing House asso­
ciation, in a public statement pointed
out that during the 47 years of the
clearing house no member bank has
failed to repay depositors in full. L,.
H. Earhart, of the Omaha branch of
the Kansas City Federal Reserve
bank, also made a public statement
pointing to the strength of the banks.
Public attention was called to the
fact that the four closed banks had
only 6 per cent of the total deposits in
Omaha.
The fear and excitement quickly
died away. The banks opened at 8
o ’clock on the following Monday
morning, an hour earlier than the
usual time, but withdrawals had
ended.
Many depositors, indeed, came
back to the bank to reopen and recon­
stitute their accounts, and, in the sav­
ings department, asked that they be
permitted to do this without loss of

interest. In several of the banks this
was permitted.
The Federal Reserve branch brought
in 3 million dollars in cash by air­
plane from Kansas Citv, but it was
found that this sum of money was
not needed.
The situation was an uncomfort­
able one for a day or two but the
promptness of the banks in meeting
all demands without delay, and their
anticipation of the depositors’ wishes
saved the incident from becoming
distressing.
J. H. Barnes to Address Bankers

Julius H. Barnes, chairman of the
board of the United States Chamber
of Commerce, has definitely accepted
the invitation of the Nebraska Bank­
ers Association to speak at the annual
convention, which will be held this
year at Lincoln, October 22nd and
23rd.
C. Q. Chandler, chairman of the
board of the First National Bank,
Wichita, Kansas, and Fred W . Sar­
gent, president of the Chicago and
Northwestern railroad, are also defi­
nitely upon the program, with a num­
ber of other speakers being secured
by William B. Hughes, the secretary
of the association.
The railroads have given a special
rate of a fare and one-half for the
round trip.
Banks Get Service Charge

Fifty-three Nebraska counties now
pay their banks a service charge for
handling county funds, most of them
paying the 1 per cent prescribed by
the law passed by the last legislature.
The state treasurer has offered onehalf of one per cent for handling
state funds, and there is a dispute
between the banks and the state over
this, most banks believing the onehalf per cent is not enough.
End Battle for Receiverships

The fight, waged in many district
courts of the state, between Clarence

15

Central Western Banker, September, 1931
G. Bliss, former secretary of the
state department of trade and com­
merce, and his successor, E. H. Luikart, over receiverships of failed state
hanks, has been ended with the turn­
ing over of the banks to Mr. Luikart.
Bliss had held about 200 receiver­
ships when Luikart was named as his
successor. He held that Governor
Bryan could not order the transfer of
assets to Luikart, and appealed from
the governor’s orders in the various
judicial districts of Nebraska.
The decrees of the judges, how­
ever, over-ruled his contention, al­
though several of them conditioned
the transfer upon final approval of
reports by the former department sec­
retary.
“ The courts gave me just what 1
thought was right,” said Mr. Bliss,
“ and that was from 30 to 40 days in
which to prepare final reports and be
discharged from liability as the re­
ceiver.”
Six State Banks Close

Six Nebraska state banks, which
had deposits in the failed Omaha
state banks, closed August 17.
Officers and depositors of the
banks that closed w ere:
First State Bank of Pleasant D ale:
Deposits, $140,000; F. C. Horacek,
president; L. A. Horacek, cashier.
Dwight State Bank: Deposits,
$180,000; F. J. Novak, president, G.
J. Tomes, cashier.
Brainard State Bank: Deposits,
$280,000; C. J. Davis, president; Fred
C. Sennin, vice-president; J. A. Proskovec, cashier.
Bruno State Bank: Deposits, $140,000; F. J. Rohn, president; A. C.
Tomek, vice-president; A. V. Rohn,
cashier.
Butler County State Bank: Depos­
its, $180,000; Joseph Shramek, pres­
ident; Peter Meysenberg, vice-presi­
dent ; R. F. Havelka, cashier.
Leigh State Bank: Deposits, $200,000; F. L. Vlach, president; W . A.
Vlach, acting vice-president; E. M.
Nelson, cashier.

played the Lupot in comparison to a
Stradivarius, and according to his
statement, there was not a “ dime’s
worth” of difference. Their advice to
preserve the violin carefully prompted
Mr. Bergeron to place it in the vault
of the First National Bank of Fair­
bury.

erty of Bert Bergeron, a customer of
the First National Bank of Fairbury,
Nebraska, affiliated with the Bancor­
poration. The violin is kept in the
modern, steel-lined vault of the bank.
As one of four violins made during
the lifetime of its creator, the instru­
ment represents years of patient
craftsmanship. The scroll itself, con ­
sisting of a hand-carved lion’s head,
bears the mark of faithful execution
in minute detail. Its maker, Rudolph
Lupot of Tyrol, Italy, was a contem­
porary and co-worker of Antonio
Stradivari of Cremona, one of the
most famous violin makers of all
time.
The Bergeron family has owned
the instrument for 150 of its 217
years. It was brought to the United
States from France by a great uncle
and sold to Mr. Bergeron’s father for
$8. In 1903 an expert repairer wired
an offer of $1,000 before any examin­
ation.
A short time ago the instrument
was sent to a famous music house in
Chicago. There, an expert violinist

Final Dividend

Depositors of the failed Meisner,
Nebraska, State Bank have received
the final dividend from liquidation of
the assets of the failed institution.
The final payment consisted of an
apportionment from the $5,010 re­
ceived from the sale at Kearney of
the final assets of the bank. The as­
sets sold consisted of $59,453.54, bills
receivable; $70,623.39 in judgments
and a small amount of real estate and
stocks and bonds.
The purchase was made by S. E.
Vogler, formerly of the department
of trade and commerce.
Clarence Bliss, who sold the bank
assets as receiver for the bank, also
sold the notes, judgments, fixtures of

United States National Bank
O M A H A
ESTABLISHED 1856

TH E OLD EST BAN K IN N EBRASKA
“ An Unbroken Record of Seventy-Five Years
is a Guarantee of Safe and Satisfactory Service”
OFFICERS:
W. B. T. B elt, Chairman of the Board
R. P. M orsman ,Chairman Executive Committee
G. H. Y ates , President
C. F. B r in k m a n , Assistant Vice Pres.
S. S. F ord, Vice President
V. B. Caldwell, Assistant Vice Pres.
H. M. B ushnell , Vice President and
R. R. R a in e y , Cashier
Trust Officer
H. E. R ogers, Assistant Cashier
J. C. M cClure, Vice President
A. L. V ickery, Assistant Cashier
T. F. M urphy , Vice President
H. W. Y ates , Assistant Trust Officer
P. B. H endricks, Vice President
J. F. R ingland , Assistant Cashier

P R O M PT SERVICE TO BAN KS ON V E T E R A N S ’ LOAN S
$40,000 Violin in Fairbury Vault

Priceless heirlooms, curious relics,
valuable papers, securities— and per­
haps even a small sack of worthless
“ diamonds” — all these things are
being entrusted to the safe deposit
protection of the banks in the North­
west Bancorporation group. More
and more customers are taking ad­
vantage of the security, convenience
and privacy of the banks’ safe deposit
facilities.
The most recent example of un­
usual articles stored in the safe de­
posit vaults of the group is a 217year old Italian violin, valued between
$25,000 and $40,000. It is the prop­

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

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Central Western Banker, September, 1931

16
the defunct Commercial Bank at Gib­
bon. They were purchased by Vogler
at a price of $2,240. The Gibbon bank
had bills receivable of $83,694.21 ;
judgments, $35,217.21 and fixtures
valued at $2,776.19.
Takes Over Barada Bank

The Falls City State Bank of Falls
City, Nebraska, has acquired all the
deposits of the Barada State Bank.
No notes were assumed but deposits
approximating $40,000 were taken
over. Officers of the bank said the
reason for the transaction was be­
cause the town of Barada is without
a railroad and has only limited terri­
tory.

Merger at Indianola

Representing a merger of interests
of the State Bank of Indianola, Ne­
braska, and the Farmers State Bank,
a new institution to be known as the
Indianola State Bank opened its doors
in Indianola last month.
The consolidation was brought
about, the bank officials said, to form
a single, strong banking house.
The president of the consolidated
bank is H. J. Southwick ; vice-presi­
dent, C. S. Quick, Jr., and cashier, W.
A. Reynolds.
The capital stock of the merged in­
stitution was listed as $30,000; sur­
plus, $6,000 ; undivided profits, $5,500, and deposits, $400,000.

FACILITIESto meet your requirements
A TH O R O U G H knowledge of correspondent service and
the problems confronting correspondent banks is a big
advantage of the Continental National Bank. W e constantly
are developing and improving our facilities to meet their
requirements.
More and more banks in this territory use our corres­
pondent facilities for their Nebraska transactions. You, too,
will appreciate the time saved — the direct routes — the
expert handling of this branch of our complete banking
service.

Continental National Bank
LINCOLN, NEBRASKA
Affiliated with N O R T H W E S T B A N C O R PO R A TIO N

SIX T Y Y E A R S
D IS T IN C T IV E
SERVICE FO R
BANKS

AND

BANKERS. . .
THE FIRST NATIONAL BANK
OF

LINCOLN, NEBRASKA
Affiliated institution T he F irst T rust C ompa ny

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Federal Reserve Bank of St. Louis

A new charter was issued the con­
solidated institution by the state de­
partment of trade and commerce.
Bertrand Banks Consolidate

The First State Bank of Bertrand,
Nebraska, has taken over the deposits
of the First National Bank of that
city and Moritz Aabel is now cashier
of the consolidated institution.
In making this move, Mr. Aabel ex­
plained, they are following in the
steps of many of the better banks all
over the country. The trend is toward
fewer and stronger banks. They can
operate with greater economy than
was possible when the business was
taken care of in two separate institu­
tions.
The First Sate Bank is assumingonly those assets which have been ap­
proved by the state banking depart­
ment and are considered 100 per cent
good. No ‘'other real estate” has been
taken in. The move was made after
very careful consideration on the part
of both banks and under the super­
vision of the banking department.
Adds to Staff

Expansion of the executive staff of
the Citizens National Bank & Trust
company of Sioux Falls, South
Dakota, by the election of T. N.
Hayter, Vermillion banker, as cash­
ier, was announced recently by W . E.
Stevens, president. Ray G. Stevens,
who has served in the dual official
capacity as vice president and cashier,
continues as vice president.
Mr. Hayter goes to Sioux Falls
from Minneapolis where for several
months he has been attached to the
central staff of the First Bank Stock
corporation, with which the Citizens
National bank is affiliated. He began
his banking experience in 1912 with
the First National bank of Vermillion
and in 1915 was elected assistant
cashier of the bank. In 1924 he became cashier and when the First Na­
tional bank and the Vermillion Na­
tional bank consolidated in 1929, he
continued as cashier of the combined
institutions. Since May of this year
he has been with the headquarters or­
ganization of the group.
Mr. Hayter and his family will
move immediately to Sioux Falls.
The family consists of Mr. and Mrs.
Hayter and two daughters.
“ Mr. Hayter is very highly re­
garded throughout the banking fra­
ternity of this state and we are very
pleased with his addition to our or­
ganization,” Mr. Stevens said. “ His
long experience in southern South
Dakota has given him an intimate
knowledge of the banking needs of
this section, and T am sure our busi­
ness community will find him a very
acceptable addition to its member­
ship.”

17

Central Western Banker, September, 1931
^lllllllllllllltlllllllllllllllllllllllllll|||||||||||||||||||||||ll||||IH1lllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllll|||||||||||||l||||||||ll|||||{|||||||||||||||||inillM|||||||||||l!||||||||l|||||||||||||||||||||||||||U

I

News of the Omaha Stock Yards
^iiiiiiimniiiiMiiimiimiimmiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiMiimiimmiimimiiiiiiiimiiiiiiiimiiiiiiiiiiimimiiimiiiiiiiiiimiiiiiiiiiiiiiiimiimiimiiiiii ¡iimiiiiiim

Nebraska Cattle Equal 1930
Nebraska had fully as many cattle
on feed August 1 as on August 1 a
year ago and is the only state in the
Corn Belt which does not show a de­
crease in operations, according to E.
V. Jones, assistant statistician for the
state and federal Division of Agricul­
tural Statistics. There were 13 per
cent less cattle on feed for market in
the Corn Belt states on August 1 this
year than on August 1, 1930.
Nebraska feeders in general have
been very well supplied with corn and
feeds of all kinds from the 1930
crops. This enabled feeders to carry
on fully normal operations, while con­
ditions in other Corn Belt states, due
to the drouth in 1930, forced feeders
to reduce operations by approximate­
ly 13 per cent. Reports from feeders
as to the kinds of cattle on feed indi­
cates a considerable decrease from
last year in the proportion of cattle
weighing over 1,100 pounds to be
marketed during the next four
months, a material increase in the
proportion of cattle weighing from
900 to 1,100 pounds, and little change
in the proportion under 900 pounds.
Reports from feeders in the Corn
Belt states as to the number of stocker
and feeder cattle they expect to buy
during the last five months of 1931
compared to the number bought dur­
ing the same period in 1930, point to
smaller shipments of such cattle into
those states this year. These reports
indicated a larger movement than last
year into some states where the
drouth of 1930 reduced Fhe in-ship­
ments, but a decrease into the princi­
pal feeding states. The reasons for
the indicated smaller movement this
year most generally given were the
unfavorable returns from feeding op­
erations during the past two years
and the resulting difficulty that many
feeders will meet in financing feeding
operations this year.
While the actual shipments of
stocker and feeder cattle this year
will be determined largely by the out­
turn of the corn crop this year and
by the supply and relative price of
unfinished cattle, most indications
point to a weak demand for such cat­
tle during the rest of this year. Be­
cause of continuing poor pasture con­
ditions in many important feeding
areas in August, the purchases of
stocker and feeder cattle are expected
to he made later this year than usual.
Cattle on feed August 1, 1931, as a


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

iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii

per cent of those on feed August 1,
1930:
Ohio ................ ..... ................... 90
Indiana ................................... 87
Illinois ...........
80
Michigan ................................. 80
Wisconsin ........................... .........
Minnesota ............................... 95
Iowa ....... r........................... .... 92
Missouri ................................. 80
South Dakota ..................
70
Nebraska ..................................100
Kansas ..................................... 80
Eleven Corn Belt states
(weighted) ....................... 87.4

Butterfat Production Drops
Butterfat production in the United
States dropped in July under that of
a year ago, according to E. C. Scheidenhelm, extension dairyman at the ag­
ricultural college of Nebraska. U n­
favorable conditions lead to the de­
crease milk production, he says in his
report released from the college.
During the past year there has been
a somewhat continuous increase in
the number of cows in production.
This, Scheidenhelm says, has now
practically reached a maximum. Very
little increase is expected in the fu­
ture.
Low priced butterfat has brought
the price of butter down. This has

been a benefit to dairymen in that
butter consumption has been increas­
ing. The month of May saw butter
going out of storage, which is an un­
usual situation, according to Scheid­
enhelm.
90
Storage
holdings of butter on July
1 were 16 per cent less than a year
ago. Butter storage at the present
time is about at the normal five-year
average. The normal five-year aver­
age is 89,025,000 pounds. On July 1
of this year there were 89,286,000
pounds in storage.
Cheese production for the first five
months of this year was estimated to
be 9 per cent less than last year for
the same period of time. Storage
holdings on July 1 were 20 per cent
less than a year ago and slightly
below the five-year average of 58,127,000 pounds.'
The only shadow which comes over
this ray of hope in the dairy industry
is the frozen cream which is in stor­
age, Scheidenhelm points out. On
July 1 there were 285,000 10-gallon
cans of 40 per cent cream in storage.
This is 23 per cent less than a year
ago. The five-year average is none of
this form of product in storage.
Oleomargarine production in April
was 31 per cent less than the same
month last year and in the month of
May the production of this same

OFFICERS
F O R D E. H O V E Y , P re sid e n t
L. K . M O O R E , A s s t, to Pres.
JAS. B. O W E N , V ic e -P r e s .
H . C. M IL L E R , A s s t. C a sh ie r
F. J. E N E R S O N , V ic e -P r e s .
C. L. O W E N , A s s t. C a sh ie r
W . H . D R E S S L E R , C a sh ie r
H E N R Y A . H O V E Y , A s s t. C ash.
T. G. BO G G S, A u d ito r

THE UNEXCELLED SERVICE
this bank is able to render in the handling of live stock
proceeds is the result of years of experience, coupled with
our advantageous location in the Exchange Building. Our
usefulness is confined not only to live stock matters, but
to every phase of the banking business.
IT W ILL BE TO YOUR INTEREST TO
CARRY AN ACCOUNT W ITH US.

Stock Yards National Bank of South Omaha
Affiliated with the Northwest Baneorporation

The Only Bank in the Union Stock Yards

Central Western Banker, September, 1931

18
product was 40 per cent less than for
the same month last year.
During the next six months it is
expected that cow slaughter will be
20 per cent heavier than last year.
The slaughter of calves is above the
normal rate. The only area in which
a larger number of heifer calves are
being saved is in some of the south­
ern states.
Cattle More Valuable than Cars

Cattle owned by Nebraskans are
more valuable by approximately
$21,000,000 than are the automobiles
owned by Nebraskans, according to

assessment valuation compiled by
Tax Commissioner Smith.
The comparative figures show the
value of Nebraska’s 2,604,990 cattle
to be $78,784,088, while the 331,322
automobiles owned by residents of
the state are valued at $56,312,273.
Horses, however, are valued at less
than one-half the valuation of auto­
mobiles. The state’s 633,190 horses
are valued at $21,354,602. Figures of
automobile valuations, Smith ex­
plains, did not include reports for six
counties which last year had 12,100
cars.
While the value of Nebraska cattle
fell this year from $95,267,425 a year

Write Us Regarding Your
Feed Lot Requirements

Live Stock National Bank
OMAHA

UNION STOCK Y A R D S
OFFICERS
W . P. A dkins , President

R. H.

K roeger, Assistant Cashier

A lvin E. I ohnson , Vice President

L. V. P u l l ia m , Assistant Cashier

H oward O. W ilson , Cashier

W . S. H ogue , Assistant Cashier


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

ago to $78,784,088 this year, the num­
ber of cattle in the state was shown
to have increased from 2,474,206 in
1930 to 2,604,990 this year.
Stocks of horses on Nebraska
farms fell off from 670,137 in 1930
to 633,190 this year and valuations
from $24,750,294 last year to $21,854,602 this year. Last year there
were 337,055 automobiles with a val­
uation of $70,258,505, whereas this
year’s incomplete reports show 331,322 automobiles, valued at $56,312,275.
Cooper Heads Sheepmen

Wyoming sheepmen in the final
session of their 28th annual conven­
tion at Rawlins last month re-elected
all officers to serve during the comingyear. They are Robert S. Cooper,
president ; Malcom Montcrieffe, vicepresident; J. B. Wilson, secretary.
Ways and means of lowering pro­
duction costs to a point in line with
present market prices occupied lead­
ing places on the convention program,
according to those in attendance.
Among resolutions drawn up with
this in mind were those recommend­
ing reductions in taxes, wages, mar­
keting costs, and grazing fees. The
secretary of agriculture was urged to
cancel all 1931 grazing fees except to
provide amounts necessary for roads
and schools.
Other resolutions decried the broad­
casting by the U. S. Bureau of Pub­
lic Health of advice against the eat­
ing of meat and endorsed modifica­
tion of the packers’ consent decree.
Appoints Committees

J. W. Bryant, president of the
South Dakota Bankers Association,
has appointed the following commit­
tees for the current year:
Agriculture: Walter Dickey, Spearfish; R. G. Eilers, Hudson; H. T.
Haynes, Spencer.
Banking Practice: L. M. Larsen,
Wessington Springs; W . H. Jarmuth,
Vermilion; Charles E. Barkl, Huron;
Fred B. Stiles, Watertown.
Insurance: M. Plin Beebe, Ips­
wich; Ira A. Moore, Sioux Falls; L.
L. Branch, Pierre.
Legislation: The executive coun­
cil; J. W . Bryant, Mitchell, chairman.
Protective: O. V. Meyhaus, Sioux
Falls; Ed A. Porter, Aberdeen; H.
M. Hanton, Watertown.
Public Relations: J. P. Shirk,
Faulkton; N. J. Thomson, Platte; W .
W. Bassett, Aberdeen; M. F. Patton,
Mitchell.
Taxation: William C. Rempfer,
Parkston; J. M. Lloyd, Yankton;
George C. Fullinweider, Huron; H.
A. Schueller, Canova.

Central Western Banker, September, 1931

19

^ M i i i i i i i i i i i i i i i i u i i i i i i i i i i i i i i i i i i i i i i i i i i i i i n i i i i i i i i i n i i i i i i i t i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i M i i i i i i i i i i i i i i n i i i i u i i i i i i i i i i i i i i i i t i i i i i i i i i i i i i t i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i t i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i H i i i i i i i i i i i ';

I New Mexico News I
~ 111111111111111111111111111111111111; 111111111111111111111:1111111111111111111111111111111111111111111111it i¡ 11111111111111111111!1111111111111111111111111111111111111111111■
11111111111111111111111111111111111111111111111111111111111111111111111111111111i11111111111111111111111111111111~

New Cashier at Estaneia

Wayne Zumwalt will fill the va­
cancy of Mr. Null as cashier of the
First State Bank, of Estaneia, New
Mexico. The Nulls are returning to
Marysville, Missouri, their former
home.

gested by the American Bankers as­
sociation which through its Agricul­
tural committee set up certain plans
for grading the work done by the
bankers association of the different
states. This was done for the purpose
of creating friendly competition as
well as to induce the bankers of the

different states to keep a record of
the things that were done in assisting
their customers along agricultural
and livestock lines.
Included in the plans of the Ameri­
can Bankers association was the ap­
pointment for every agricultural
county in every state a key banker,
whose duty it would be to especially
see that each banker in that county
was active in agricultural work. The
agricultural committee of the State
Bankers association has appointed
bankers as key bankers for the differ­
ent counties of New Mexico.

Moore Made Director

Jack E. Moore, assistant cashier of
the First National Bank of Roswell,
New Mexico, for a number of years,
has been elected a director of the
bank, to fill the vacancy on the board
of directors caused by the death of
Frank Divers, who served as a mem­
ber of the board for many years.

HOLD-UPS

New Mexico’s First Bank

held
down

The first bank in New Mexico was
established in Santa Fe in 1870. Up
until that time banking in the state
was carried with the big merchants of
Fas Vegas, Santa Fe and the larger
towns of the Rio Abajo.
Plans Farmer Help

The bankers of the state of New
Mexico through their state associa­
tion and in co-operation with the
county agents and officials of the
New Mexico A. & M. College are
making an active campaign for the
year 1931, taking special interest in
the agricultural and livestock indus­
tries of the state.
It is the desire of the State Bank­
ers association to put over what
might be termed a state-wide agri­
cultural efficiency campaign, where
the bankers of the state will co-oper­
ate in trying to get the farmers and
livestock men to keep a record of
their business with an idea of know­
ing what it costs to produce the live­
stock they raise and the agricultural
products they grow.
Bankers are giving a great deal of
thought to the cost per item of hand­
ling checks and other item expenses
that are a part of routine banking and
the bankers believe that it would be
very beneficial to the farmers and
livestock men if they could be in­
duced to keep a set of records of their
business. They think that if there ever
was a time when agriculture and
livestock industries needed a helping
hand and more efficient management
to succeed, it is at this time, with cat­
tle, sheep and farm products all sell­
ing far below the cost of production.
The New Mexico State Bankers
association
is following the plans sug
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

TVANDITS pay more
attention to their
g e t - a w a y than any
other phase of their at­
tack. And DIEBOLDLAKE ERIE T E A R
G A S SYSTEMS r ui n
their chances of es­
cape. The tear gas gets
into their eyes, smarts,
starts a flow of tears
that reduces the ban­
dits to helplessness . . .
drives them out of the bank . . .
makes them easy subjects for police
attention.
That is why a bank equipped with
this modern form of protection safe­
guards itself not only against hold­
ups, but against the planning of them
as well. Insurance rates are reduced
25% .
The Diebold-Lake Erie Tear
Gas sign notifies the bandit of what
is in store for him. And DETOURS
hi m!
To provide absolute protection
against the possible loss of money in
the confusion that follows even an
unsuccessful hold-up, Diebold has de­
veloped THE TELLER’S SAFETY
LOCKER.

DIEBOLD

Cash for ordinary business transac­
tions is kept in the cash troughs in
tile counter. Excess funds are dropped
into the locker beneath. The Locker
furnishes each teller with protection
suited to his responsibility. It estab­
lishes a system for the handling of
money that eliminates all chances of
error and mysterious disappearance.
It is particularly effective with the
Tear (las System.
Diebold furnishes complete twentyfour-hour protection for banks —
against banditry and burglary. Ser­
vice is available at any point in the
United States within 24 hours. In
metropolitan areas, immediately.
For information, write to the mak­
ers of the famous Diebold Vaults and
Vault Doors for banks.

Safe &* Lock Co., Canton, Ohio
OVER SEVENTY YEARS OF BANK SERVICE

Central Western Banker, September, 1931

20

Dividend Notes

Colorado News
.................................................................................................................................
10 per cent have been mailed from
H. R. Greene has been elected vice- the office of Grant McFerson, state
president and trust officer of the bank commissioner. Between $15,000
Rubey National Bank of Golden, Col­ and $18,000 will be paid by the com­
orado, filling the vacancy left by the missioner in the first dividend.
The first dividend, while small, will
resignation of H. W. Pratt, who re­
signed August 1. Lela G. Craft, who afford relief for many depositors of
has been assistant to President E. A. the bank in Crested Butte, who have
Phinney, was named assistant trust faced stringent conditions since the
close of the institution several months
officer of the bank.
Mr. Greene was already a member ago. With the mines operating with
of the board of directors and the va­ small part-time forces, even a small
cancy on the board, left by the resig­ amount of ready cash will bring joy
nation of Mr. Pratt, has not been to the camp.
filled. The other directors are J. C.
Burger, chairman, S. A. Koenig and
Bankers Honored
Mr. Phinney.
Charles B. Engle, 1628 Colorado
Mr. Greene joined the staff of the
blvd., Denver, Colorado, secretary and
Rubey National Bank in 1917 as a
treasurer of the International Co.,
bookkeeper. Previous to that time he
and assistant treasurer of the Inter­
had been employed by the Colorado &
national Trust Co., was nominated to
Southern railroad, the Coors brew­
the board of governors of the Invest­
ery, the Western Union, and the State
ment Bankers Association of Ameri­
Industrial school.
ca, last month.
Nomination, it is said, is equivalent
Cashier Resigns
to election in the association, and it is
Carl C. McMurray, who has been expected Engle will take office at the
cashier of the First National Bank of 20th annual convention of the organ­
Limon, Colorado, for the past several ization to be held in White Sulphur
years, has resigned his position.
Springs, W . Va., in November.
After taking a short vacation Mr.
Other officers nominated were
McMurray will take up one of several Allan M. Pope, New York, president ;
propositions which are open to him. Alden H. Little, executive president;
The Board of Directors of the First Dietrich Schmitz, Seattle, vice presi­
National Bank have appointed G. R. dent.
Bailey to fill the position vacated by
Others nominated to the board of
Mr. McMurray. Mr. Bailey goes to governors were Francis Moulton, Los
Limon from Oklahoma, where he has Angeles, and William Cavalier, San
had several years banking experi­ Francisco.
ence.
Vice President Rubey National

Pays Dividend

Good news for depositors of the
defunct Crested Butte bank of Gun­
nison, Colorado, is found in the an­
nouncement by J. A. Lamb, receiver
in charge, that dividend checks for

Payment of a second 10 per cent
dividend to depositors and creditors
of the Sugar Banking company of
Salt Lake City, Utah, was asked by
Joseph N. Leggat, bank examiner in
charge of the institution, in a petition
hied in Third district court. It is
planned to make the payments on
September 1.
The petition points out that after
the second dividend, the total liability
of the bank will be $285,858.26, and
that the book value of assets is $392,125.51. The assets include $322,578.27 in loans and discounts. The
petitioner further stated that during
the liquidation of the bank, interest
earnings have been $2,000 in excess
of the costs of liquidating.
It seems there were an Irishman
and a Swede. He came from Cork
and she from Minnesota and they met
in South Carolina and were married.
That was fourteen months ago, and
two weeks ago twins arrived. The
proud parents announced that the
twins would be named Amos and
Andy.
Newspapers printed the story, the
news services spread it. And the thing
happened that we had feared. Would
you believe it— 321 papers featured
the yarn: 152 editors head it, “ Check
and Double Check,” 67 entitled it,
“ A w ah! Awah !” and 101 put “ Ain’t
Dat Sumpin” over the story.
One lone, but courageous soul,
wielding a stout editorial pencil, scrib­
bled this: “ Fse Regusted!”— Aircaster.
A pessimist is a man who would
want things different even if things
were different.

A colored man was driving an old
flivver in Sarasota, Florida. In lieu of
the license plate, he had a shingle at­
tached to the rear of his car and on
this shingle were printed these words:
“ Lost it.”

Senior: What is it that lives in a
stall, eats oats and can see equally
well at both ends?
End Man : By me.
Senior : A blind horse.

AUSTRALIA

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

1817

( W i t h w l ii c l i is a m a l g a m a t e d T H E W E S T E R N
P A I D -U P
RESERVE
R ESERVE

A U S T R A L IA N

BANK)

C A P I T A L _________________________________________________________________ _
F U N D ---------------------------------------------------------------------------------------------------------• Ï 'OO OOO
L I A B I L I T Y O F P R O P R I E T O R S -------------------------------------------- _ _ .L ,o 0 0 ,0 0 0

$ 105,750,000

Aggregate Assets 30th September, 1930, $446,141,890
A G E N T S __ F I R S T N A T I O N A L B A N K , O M A H A , N E B R A S K A

H E A D OFFICE, GEORGE ST., S Y D N E Y
„ r n n c l . e . . . . . . . A g e n c i e s In „ I , A n » , e n , Inn


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

GENERAL M ANAGER, ALFRED

CHARLES

D A Y ID S O N

LO N D ON OFFICE, 29 T H R E A D N E E D L E ST., E. C. 2
. ................... ...

Central Western Banker, September, 1931

21

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I

Wyoming News

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itors in the
money.

To Reopen Bank

Plans for reorganization and re­
opening of the Union State bank of
Omaha as a strong institution are
being formulated with every prospect
of success.
Conferences of officials of the state
banking department, attorneys and
stockholders of the Union State bank
have been held daily, and rapid prog­
ress in the reorganization program
was reported.
The report of the state bank ex­
aminers, after thorough checking of
the bank’s assets, was that the bank
was in first class financial condition
and could be reopened as a sound
state bank.
Some fresh money is to be put into
the bank, the $30,000 owing the state
bank guaranty fund is to be paid and
probably some new directors added,
according to reorganization plans,
which provide that none of the depos­

bank

shall

lose

any

State Bank Nationalized

The Antelope State bank of Neligh, Nebraska, has received the cer­
tificate authorizing its conversion to
a national bank and became the Na­
tional Bank of Neligh. This change,
according to officers of the banks, had
been in prospect since the re-organi­
zation of the Antelope State about a
year and a half ago.
With nationalization of the bank in
view when in the opinion of the di­
rectors and stockholders the time had
come to make the change, the institu­
tion followed requirements of the
federal reserve system with regard to
loan limits at all times. Final approval
of the application for a national bank
charter was received July 30, and
new supplies were ordered.

Prepare for Meeting

Wyoming banks will be well rep­
resented at the twenty-third annual
meeting of the Wyoming Bankers’
association September 4 and 5 in
Cheyenne.
It is expected the 1931 meeting,
which will be held on the mezzanine
floor of the Plains hotel, will be one
of the most successful in the associa­
tion’s history.
Banks in the state are in the best
condition they have been since the
epidemic of bank failures several
years ago, according to reports, which
state consolidations and reorganiza­
tions have clarified the banking situa­
tion in the state to a considerable ex­
tent. At present banking conditions in
Wyoming are more sound than in
many states in the country.
Optimistic crop and livestock out­
look in many portions of the state,
and increased development of W yo­
ming into an industrial state are
major factors in establishment of
sound banking conditions, it was said.
Sessions of the September meeting
will include committee reports, dis­
cussions and addresses by prominent
banking and economic leaders. Enter­
tainment features for convention
members and their guests will be a
bridge-luncheon at the Cheyenne
Country club, automobile trips in
Cheyenne and surrounding vicinity,
and a dinner-dance at the country
club.
Elect Officers

T
C h a se N


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Federal Reserve Bank of St. Louis

he

a t io n a l

B ank

o f the City o f N ew York
P ine S t r e e t c o r n e r of N a s s a u
»«

Capital

.................... $ 148,000,000

S u r p l u s ....................
Deposits (June30,1931)

148,000,000
1,897,000,000

T he Chase National Bank invites
the accounts o f banks, bankers,
corporations, firms and individuals.
»«
General Banking

• Trust Department

Foreign Department

Reorganization of the State Bank
of Payson, Utah, was completed last
month with the transfer of the stock
of W. W. Armstrong of Salt Lake
and the Tolhurst estate of Payson to
a group of Payson business men.
The new interests in control elected
the following new directors, all from
Payson: George Chase, John Oberhansley, John Lant, William McCor­
mick and William A. McClellan. Mr.
Chase was named president to suc­
ceed Otto Erlandsen, and Mr. Oberhansley as vice president and man­
ager, succeeding Henry Erlandsen. G.
M. Whitmore of Nephi also resigned
from the board. The other new direc­
tors were named to fill vacancies on
the board.
Byron Howells is retained as vice
president, and Roy Monson as cash­
ier.
New Payson stockholders in the
bank through the reorganization in­
clude David Shuler, Earl and A. C.
Page, P. C. Wightman, Amos &
Street, Sidney Corey, G. F. Ott,
David Bigler, Dr. L. D. Stewart, Tohn
and Darrell Brown, E. Dean, Fern
Gray, George Seabury, Dr. A. L. Cur­
tis and Paul Davis.

22

Central Western Banker, September, 1931

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Where a balance of more than $50
is maintained, one additional check
for each $10 on deopsit will be al­
lowed free.

................................................................................................................ .
Merger at Coats

The two banks in Coats, Kansas,
have merged, the Coats State bank
taking the assets of the First National
bank.
The First National bank was or­
ganized in 1919, and at the time of its
last statement had a capital of $30,000 and deposits of $76,000. I. N.
Shriver was president of the First
National bank; A. Staats, vice presi­
dent; E. L. Trock, cashier, and J. R.
McNicholas, assistant cashier.

Under the ownership and manage­
ment of George W. Lemon and his
associates, the Coats State bank will
amply serve the Coats community,
officers believe. The Coats State bank
was organized in 1902, and is one of
the oldest banking institutions in the
county.
Install Vault Ventilator

The First National Bank of Girard.
Kansas, has installed a ventilator in
its vault, as a precaution for safety
in case bandits should imprison any­
one in the vault.
It is a device to draw fresh air into
the vault and drive out the foul air.
Should several persons be confined
for even a short time within the nar­
row limits of the vault, they would
soon suffer because of the lack of air.
This device removes that hazard.
Buxton Heads Kinsley Bank

A. E. Buxton was elected president
of the Kinsley, Kansas, bank at a spe­
cial meeting of the board of directors
last month. He takes the place of R.
E. Edwards, deceased. Lee Parker
was elected cashier to succeed Mr.
Buxton. Mr. Buxton was also elected
to the board of directors to succeed
Mr. Edwards. The other officers of
the bank remain the same.
State Bank Absorbed

Absorption of the Bridgeport,
Kansas, State bank by the Assaria
State bank, effective last month, was
announced from the offices of Harry
W. Koenke, state bank commissioner.
John C. Short was president of both
banks. The Bridgeport bank was cap­
italized at $10,000, with $2,500 sur­
plus, $79,000 deposits, and loans
amounting to $48,000.

Two Banks in Merger

The Oakland State bank and the
Kaw Valley National bank of
Topeka, Kansas, have been merged
and will operate as the Kaw Valley
State bank at 844 North Kansas ave­
nue, it has been announced by N. E.
Copeland, president of the Oakland
bank, and Charles J. Stewart, presi­
dent of the Kaw Valley National.
The new Kaw Valley State bank
will be capitalized for $50,000, with
surplus and undivided prohts of
$15,000 and total resources more than
three-quarters of a million dollars.
Officers of the merged bank will
be: N. E. Copeland, president; M. T.
Kelsey, vice president; J. S. Swogger,
vice president; R. E. Fritz, vice
president; Glenn Swogger, cashier.
Scott E. Kelsey and J. H. Collingwood are directors.

| DO Y O U

! K now
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Banks to Increase Service Charges

IN LINCOLN....
HOTEL LINCOLN
H O TEL C A P ITA L

IN NORFOLK....
H OTEL N ORFOLK
Maximum Com fort at
a Minimum Rate


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Federal Reserve Bank of St. Louis

A new schedule of service charges
on checking accounts by Cache valley
clearing house banks will go into ef­
fect September 1, a statement sent
out to customers of each bank an­
nounces.
The old plan of a 50-cent charge
per month will be maintained on all
accounts with an average balance of
$50 a month. In the Logan, Utah, and
Preston banks an additional charge of
3 cents per check over ten issued dur­
ing the month will be made, while in
the county banks the limit is 15
checks per month.

!
|

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Credit Information

C o n t in e n t a l Illin o is
BANK AND TRUST
COMPANY
C H IC A G O

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