Full text of Mid-Continent Banker : The Financial Magazine of the Mississippi Valley and Southwest : May 1929, Volume 25, No. 5

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MID CONTINENT

VI

BANKER

The Financial Magazine of the Mississippi Valley


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

S T . L O U IS

M A Y , 1929
IN T H IS ISSU E

W h y Business Men Are Failing
By Dr. Clyde W m . Phelps
Page Eleven

A Sound Loan Policy for a Country Bank
By Calvin F. Schwenker
Page Thirteen

Missouri Convention Section
Page Twenty-Seven

Illinois Group Meeting Section
Page Ninety-Seven

Tennessee Convention Section
Page One Hundred and Thirteen

Oklahoma Convention Section
Page One Hundred and Twenty-Four

-W
-

ND INVESTMENT SE<
Page 51

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M id-C ontinent B anker

f^ ^ E C U R IT IE S are p la y in g a constantly
increasing part in the business o f banks—
for their own investments, their depositors’
investments and as c o lla te r a l in securing
loans. F o r this reason, it is im portant that
a b a n k e sta b lish a str o n g and in tim ate
c o n n e c tio n w ith a r e l i a b l e in v e stm e n t
house having full know ledge o f banks’ in­
vestment problem s. A co n n e c tio n o f this
ch a r a c te r is ava ila b le th r o u g h the F irst
N a tio n a l C o m p a n y . T h r o u g h the recent
m erger o f the First National B ank and the
Liberty Central Trust Com pany, in which
the Bond D epartm ent o f the Liberty Cen­
tral Trust C om pany united with the First
National Com pany, this institution is in a
position to underwrite and distribute secur­
ities on a still larger scale, and to render
a broader investment service and counsel.

st

FIR ST NATIONAL COMPANY


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Federal Reserve Bank of St. Louis

Investment Division of,lhe First National ßdn\
BROADWAY, C U V X AN D L O C U 5T

Sx j O D ^ M Q

May, 1929

C

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3

M id-C ontinent B anker

May, 1929

o w

.. .

One of America’s Greatest Banks
T H E L IB E R T Y C E N T R A L T R U S T CO. I N ST. L O U IS MERGED W I T H V

(

ST. LO U IS’ LARGEST B A N K - T H E FIRST N A T I O N A L - M A R C H 25, 1929

)

First National Bank Directors
F. O. WATTS
THOMAS R. AKIN
EUGENE LI. ANGERT
JAMES F. BALLARD
CHAS. E. BASCOM
W. N. BEMIS
WILLIAM K. B IXB Y
AUGUST. A. BUSCH
L. RAY CARTER
WILEY F. CORL
WILLARD R. COX
B. B. CULVER
WM. H. DANFORTH
SAM ’L C. DAVIS
F. B. EISEMAN
JOHN D. FILLEY
SAMUEL W. FORDYCE
J. J. FREY
S. II. FULLERTON
WARREN GODDARD

WALTER W. SMITH
F. E. GUNTER
RICHARD S. HAWES
BENJAMIN GRATZ
JOHN L. GREEN
ISAAC H. ORR
THEO. HEMMELMANN. Jr. J. T . PEDIGO
H. M. PFLAGER
A. C. HILMER
FRANK PHILLIPS
ANDREW W. JOHNSON
CHAS. M . RICE
ROBERT M cK . JONES
H ARRY SCULLIN
JOHN B. KENNARD
JOHN F. SHEPLEY
H. H. LANGENBERG
SYDNEY M. SHOENBERG
CH. A. LEMP
WALLACE D. SIMMONS
E. K. LUDINGTON
M. E. SINGLETON
LOUIS F. LUMAGHI
JAMES E. SMITH
GEORGE A. MEYER
JOHN B. STRAUCH
JOHN E. MITCHELL
HOWARD V. STEPHENS
WM. T. NARDIN
J. CLARK STREETT
CHAS. A. NIEMEYER
HILLSMAN TAYLOR
E. D. NIMS
JAMES E. TAUSSIG
ERNEST E. NORRIS
M . B. WALLACE
JOHN M. OLIN
ALLEN T . WEST

First National Bank Officers
F. O. W ATTS,
Chairman o f the Board

NATIONAL
BANK

F. E. GUNTER,
Vice C h a irm an of the Board

WALTER W. SMITH
President

Vice Presidents
RICHARD S. HAWES,
W. T . RAVENSCROFT
F. V. DUBROUILLET
JOSEPH S. CALFEE
E. C. STUART
M . E. HOLDERNESS
W. F. GEPHART

J. R. COOKE
C. HOBART CHASE F. C. HUNT
BERT H. LANG
E. G. COFFMAN
R. PALMER M cELROY
J. J. FREY
OLIVER G. LUCAS LAWSON M. WATTS
W. C. CONNETT
F. O. HICKS
J. N. SOMMER
M. R. STURTEVANT G. RIESMEYER, Jr. W. A. GORDON
E. BARKLAGE
EDW. HORM AN
JACOB BERGER
JOHN S. WELLS

W M. C. TOM PKINS, A uditor

CHARLES L. ALLEN, Cashier

Assistant Vice Presidents
E. A. BROOKS
BRUCE RAMSEY

J. E. McKINNEY
J. M . GARESCHE
H. C. HARTKOPF

LONA B. JENNINGS
J. K. VARDAMAN, Jr.

Assistant Cashiers
A. W. HAILL
SAMUEL FORDYCE III
C. B. SCHMIDT
RICHARD L. K IN G
H. F. REIN
W M . C. STAUSS
JAS. McCLEAVE
C. H. M ORRIS
H. J. BRENNER
C. A. TACKE, Jr.
A. S. BROOKS

Assistant Auditors
F. J. HOLLOCHER

R. A. URIAN

C. W. ALLISON

Managers, Savings D epartm ent
NOBLE R. JONES
A. H. L. KUHN
Assistant Manager
H. M. BERGER

w sTvI;®u,s

M gr., Credit D ept.
H. L. WELCH

M gr., Industrial Service D ept.
H. F. BOETTLER

M gr., B ookkeeping Dept.
R. I. HENDERSON

Assistant Manager
Credit D ept.
R . D. KERR

M gr., Collateral D ept.
J. C. PAULUS

M gr., Safe D eposit Dept.
JULIEN JANIS

M g r., Transit D ept.
H. BISCHOFF

M gr., Foreign D ept.
1. W. LONERGAN

M gr., A dvertising Dept.
FRANK FUCHS

FIRST NATIONAL BANK
IN ST. LOUIS

Capital, S u rplu s and U n divided P ro fits$ 2 0 ,0 0 0 ,0 0 0 .0 0

The Mid-Continent Banker is published monthly by the Commerce Publishing Company, 408 Olive Street, St. Louis, Mo. Subscription price $3.00
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per year. Volume 25. No. 5. Entered as second class matter at St. Louis Postoffice. Additional entry as second class matter at Fulton, Mo.
Federal Reserve Bank of St. Louis

4

M id-Continent B anker

May, 1929

SOME OUTSTANDING
o f Bank Buildings E r

St. Louis Bank Building
Designers , Engineers and Builders ft
C H IC A G O

ST. LOUIS

SO U T H SID E N A T IO N A L B A N K
St. Louis, Mo.
This building is 139 ft. wide and 50 ft. deep; ten stories high. Bank­
ing room is located on second floor. Building was completed in ten
months from starting date. This bank absorbed the Farmers and
Merchants Trust Company, which had resources o f over $5,000,000,
just prior to its opening.

The original facilities planned for this bank
were adequate to take care o f the consolidated
institutions. Although these people original­
ly planned a four-story building, our prelim­
inary survey showed that a ten-story building
would be more profitable. Our surveys in­
clude detailed analyses o f costs, rental in­
come, operating expenses and net return on
investment, as well as floor plans and eleva­
tions o f proposed building.
Locating the banking room on the second floor o f this building
is a somewhat unusual arrangement. This not only provides
a substantial income from first floor stores, but also permits a
larger banking room (see floor plan below ). Space required for
building lobby on first floor is used for bank space on second floor.

=;

Floor Plan— South Side National Bank

exp
mo
Banking Room— Ripley National Bank

CASS A V E N U E B AN K
St. Louis, Mo.
Building (shown at left) is 130 ft. wide and 60 ft. deep; onestory with mezzanine floor. This bank is termed “ St. Louis’
Most Beautiful Bank.” The banking room is graceful and dig­
nified in its proportions, and marked by refinement in every de­
tail o f its furnishings.

Cass Avenue Bank, St. Louis, Mo.


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

Our preliminary service enables you to visualize your future
building just as it will appear when completed. This insures
against disappointment in design, arrangement and decoration.
It is fully explained in our booklet, “ Preliminary Service for
Contemplated Bank Buildings.” May we send you a copy?

Mid-C ontinent B anker

May, 1929

RECENT EXAMPLES
xtea by

&Equipment Co.
r Banks Exclusively
M E M P H IS

BANCO DE M E X IC O
Mexico, D. F.
Directors’ Room
Banco de Mexico
The building o f the Banco de M ex­
ico is the most modern in both de­
sign and construction in Mexico.
It faces the world famous Mexican
Opera House. Painting above fire
place in directors’ room is that o f
former President Calles, u n d e r
whose administration the bank was
organized.

Banking Room— Chippewa Trust Co.
R IP L E Y N A T IO N A L B AN K
Ripley, Ohio
ing is 22 ft. wide, 72 ft. deep and one story high. At a moderate
diture this building and banking interior were completely re­
ed and refurnished. All available interior space is used to afhe utmost in adequate working quarters. Tellers’ cages are lo­
on window side o f lobby, enabling light to enter directly over
s’ shoulders.

C H IP P E W A T R U ST CO.
St. Louis, Mo.
Building is 62 ft. wide and 118 ft. deep; two stories high. The
ceiling heighth o f the banking room is 23 ft. The most distinc­
tive feature o f the interior is the twelve skylights in the ceiling.
They provide a generous supply o f light and ventilation for the
banking room, thereby creating the atmosphere o f a comfortable
place to transact business.
Excessive overhead expense is overcome by incorporating a num­
ber o f shops and a floor o f offices in the bank building. This ar­
rangement not only produces a substantial income, but also a f­
fords a ready means o f expansion in later years.


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Federal Reserve Bank of St. Louis

Chippewa Trust Co.— St. Louis, Mo.

6

M id-C ontinent B anker

in a financial
institution, just as in any
commercial line, is largely
dependent upon the facil­
ities available. The steady
increase of facilities from
year to year in such an in­
stitution is but the result
of service r e n d e r e d ...a
proof of the past, and an
assurance of the future.
So it has been with the
M ercantile T ru st Com­
pany, one of the landmarks
and pillars of finance in
the Central States.

May, 1929

'E R V IC E

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MercantiieTmstCompany
C A P IT A L AND SURPLUS

EIGHTH >vnd LOCUST


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Federal Reserve Bank of St. Louis

~ T 0 ST. CHARLES
ST. LOUIS

m

M id-C ontinent B anker

May, 1929
»

77ie Financial Magazine o f the Mississippi G alley
D O N A LD H. CLAR K , Editor and Publisher
JAMES J. W E N G E R T and W IL L IA M H. MAAS, Associate Editors
P A U L E D W AR D S, Assistant Editor

V O L . 25

The Mid-Continent Banker Territory

No. 5

ST. LO U IS, M A Y , 1929

C O N T E N T S FOR M A Y

.
Should Statements Be Required?— W. R. McGaughey
Why Business Men Are Failing— Dr. Clyde Wm. Phelps
Sound Loan Policy for a Country Bank—Calvin F. Schwenher
Bandit-Proof Equipment Inspires Confidence— J. H. Wise
The Bank Examiner Makes a Call— Roscoe Macy
Structural Steel in Bank Buildings— Harry Penn
What About Loans to Merchants?—Ben Johnson
Wonderland of the Missouri Ozarks
Normandy State Bank Opens New Building
Missouri Bankers Convention Section
.
Bond and Investment Section
Illinois Group Meeting Section
'
Legal Tender Section
Tennessee Convention Section
Oklahoma Convention Section
Texas Convention Section
Kentucky Wins First Rank in Banker-Farmer Activity
-

9
11
13
15
19
21
22
24
45
27
51
97

no
113
124
135
140

STATE NEWS SECTIONS
Missouri
Illinois
Tennessee
Mississippi
-

32
108
116
118

Louisiana
Alabama
Oklahoma
Arkansas

122
123
125
127

Kansas
Kentucky
Indiana
Texas -

128
130
131
136

n
The Mid-Continent Banker is published monthly by the Commerce Publishing Company. Donald H. Clark, President; William
H. Maas, Vice-President; James J. Wengert, Secretary and Treasurer

408 O L IV E S T R E E T , ST. L O U IS , M ISS O U R I
Telephone GArfield 2138
CHICAGO O F F IC E :
William H. Maas, Vice-President
1221 First National Bank Building
Telephone CENtral 3591

M IN N E A P O L IS O F F IC E :
Frank S. Lewis, Manager
840 Lumber Exchange Building
Telephone Main 3865

Subscription price $3.00 a year; 40 cents a copy
The Mid-Continent Banker is entered at the St. Louis postoffice as second class matter.
matter at Fulton, Missouri


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Federal Reserve Bank of St. Louis

M EM BER

A U D IT

BU REAU

OF

C IR C U LA T IO N S,

F IN A N C IA L

Additional entry as second

A D V E R T IS E R S

A S S O C IA T IO N

class

M id-C ontinent B anker

The
Federal Land Bank
ofSt. Louis
Serving
Illinois, Missouri and Arkansas

Capital and Reserves $6,500,000.00
Assets

$iio,ooo,ooo.oo

“8?

The Ideal Farm Loan fo r Your Customers


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Federal Reserve Bank of St. Louis

M ay, 1929

The Mid^Contment Banker
THE

FINANCIAL

Volume Tw enty-Five

MAGAZINE

OF T H E

MISSISSIPPI

VALLEY

ST. LOUIS, MAY, 1929

Number Five

Too Much Credit and Not Too Little Is the Thing
That Gets Most Banks Into Financial Difficulties
HE purpose of a financial state­
ment is to put before you a cor­
rect picture of all the assets and liabil­
ities of the borrower, for the purpose
of analyzing them to determine the
safety of the loan and the ability of
the borrower to pay. In other words,
a financial statement should be taken
to assist in passing judgment on loans
and thus aid in putting into your note
case the kind of loans that will make
your bank a safer and more profitable
bank.
In discussing the subject, I think it
advisable to consider first—-statements
of individuals. Second—of firms and
corporations.
It hasn’t been many years since very
few, if any, financial statements were
to be found in banks outside of cities.
The old time banker prided himself
in the intimate knowledge he possessed
of his customers’ business and domes­
tic affairs, all of which he carried in
his head, and the matter of extending
credit depended largely on his personal
knowledge of, and acquaintance with
the borrower. Bank credit was grant­
ed largely on the basis of personal
appreciation or on what might be
called credit sense.
It may be said that in the past it
was successful, which probably ac­
counts for the inertia on the part of
the banker in seeing the need of adopt­
ing a more analytical practice. Many
bankers in smaller communities still
maintain that there is no particular
reason for their getting financial state­
ments from their customers, as they
are thoroughly familiar with their af­
fairs. This may have been true a few
decades ago, because business was con­
ducted then on a different basis. In­
dividuals were not so inclined to over­
extend. Business a n d professional
men, the owners of real estate and the
most successful tenant farmers were
about the only ones using the bank.
The time payment plan of financing
purchases was unheard-of. A man

T


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

By W . R. McGaughey
Executive Vice-President, Citizens National
Bank, Decatur, Illinois

bought what he could pay for in cash,
or on a short time basis. A standard
of high living was not so prevalent
in those days. A man that had a good
driving team and a rubber tired car­
riage, was pretty sure to own it, and
was considered well to do, but today
the fact that a man drives a high

“ In England a man is considered
worth so many pounds a year, but
here in America we are inclined to say
that a man is worth so many dollars,
irrespective of his income or earning
power. Too often, even after taking
a financial statement, which shows on
the face of it an apparent satisfactory
net worth, the ability to pay may not
be there.’ ’

priced automobile, is no real indica­
tion that he owns it, much less the
clothes he may be wearing. A man’s
business horizon was limited largely to
the border of his own community, and
the banker did have, in those days, a
more intimate personal knowledge of
his customers’ possessions and deal­
ings, than he can possibly have today.
That day is gone forever, even with
the smallest country banker. With
the advent of the automobile and the
hard road, there has been a breaking
down of the smaller community as a
center, and there is a tendency on the
part of most everyone to reach out
farther, which makes it impossible for
the banker in the small town to have
the same intimate knowledge of his
customers’ affairs which he once had.
Therefore, the passing on credits must
be put on a different basis, and in or­
der to get before you the information
needed, the customer should be re­

quired to list for his banker, all of
his assets and liabilities over his sig­
nature. By taking a financial state­
ment, you are naturally going to give
more thought to the analysis of the
borrower’s holdings, and his indebted­
ness, than you would without one.

A nalyzing Statements
HE mere taking of a statement is
not sufficient. The statement
should be analyzed, and with it before
you, you have a much better oppor­
tunity of intelligently discussing with
the borrower, his financial condition.
In analyzing an individual’s statement,
you are of course interested in what
his assets consist of. I f in real estate,
what is the status of it, clear or en­
cumbered? Is it in the borrower’s
name and has he a fee simple title?
Where is it located and what is the
present market value? Is it income
property? I f so, what is the annual
income? If in chattels what are their
worth and how stable are they? Have
they a market value? Regarding the
liabilities, you are concerned as to the
total amount of his indebtedness, to
whom owed and whether current or
long standing. You should know, also,
the amount of his contingent liability,
whether he is on the notes of others
and if so, the exact amount. From his
statement, you are endeavoring to de­
termine first of all, whether the loan
will be safe, and second—-what is the
borrower’s ability to pay in a reason­
able length of time.
We are learning that time is an es­
sence of a desirable loan as well as
security. There was a time, and not
so many years ago, when the banker
hesitated to even suggest to the bor­
rower that he wanted him to reduce
his loan or pay it in full. His theory
was, he is my customer and I am in
the business of loaning money, there­
fore I should keep on loaning him as
long as I think he is good and as

T

9

10

M id-C ontinent B anker

long as my correspondent bank will
discount paper for me. That theory
has been exploded, but not until its
resultant effect brought sufficient grief
to prove the fallacy of it.
Not enough thought and stress is
given to determining the borrower’s
ability to pay, because after all is said
and done, the thing that makes a loan
satisfactory is not what we may con­
sider a man’s worth, but wliat is his abil­
ity to pay. In England a man is con­
sidered worth so many pounds a year,
but here in America we are inclined to
say that a man is worth so many dol­
lars, irrespective of his income or earn­
ing power. Too often, even after tak­
ing a financial statement, which shows
on the face of it an apparent satis­
factory net worth, the ability to pay
may not be there. His net worth may
be largely in equities or fixed assets,
which oftentimes shrink very material­
ly, and are hard to convert into cash.
If it had been the practice of the
smaller banks to take financial state­
ments and if ability to pay had been
taken into consideration, many banks
that have been closed would still be
operating today, and serving their cus-

turners and community, in the normal
way. With the adoption of a loan
policy of taking statements, analyzing
them with respect to ability to pay, as
well as net worth, large lines would
rarely creep in and consequently very
little would be heard about frozen as­
sets. In the past, banks as well as in­
dividuals, have gotten into financial
difficulties because of too much credit,
rather than a lack of it.

A u d itor’ s Statements
ET u s consider now, briefly, why
statements should be required of
firms and corporations. Authorities
recognize that there are three impor­
tant elements of risk to be considered
in extending credit to firms or corpo­
rations. First— those of a financial
nature. Second—the human element,
covering the personal ability and in­
tegrity of the management. Third—
general business conditions. Again let
us consider only tbe first because it
is the one that relates largely to the
financial statement.
In dealing with firms or corpora­
tions, the so-called credit sense or
hunch, is far less effective than in the

L

G .E . Hoffman, President o f Merchants
Laclede
EORGE E. HOFFMAN, president
of the Merchants Laclede Nation­
al Bank, St. Louis, died April 4 at his

GEORGE E. HOFFM AN

home in that city following an opera­
tion for appendicitis. Mr. Hoffman
was stricken with an acute attack of
appendicitis a few days before his
death, and following his operation per­
itonitis set in which caused his death.
He was 65 years old and his entire

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

(7n
o
ita
[S
I ,Dies
adult life had been devoted to banking.
During the negotiations for the con­
solidation of the Mississippi Valley
Trust Company, the Merchants La­
clede National and the State National,
Mr. Hoffman was one of the motivat­
ing factors.
He had been president of the Mer­
chants Laclede National since 1920
and would have been chairman of the
board of the Mississippi Valley Mer­
chants State Trust Company, formed
by the merger.
Mr. Hoffman started in as a clerk
in the old Laclede National in 1880 and
when that institution was merged with
the Merchants National to become tbe
Merchants Laclede National, he be­
came assistant cashier. He worked up
surely and swiftly and in 1920 he be­
came president of the bank.
Although he was almost solely in­
terested in banking affairs, Mr. Hoff­
man for the past two years was treas­
urer of the Community Fund, and for
many years took an active part in
its work.
His associates say that he devoted
much of his time to the study of
finance as well as executing practical
ideas. His only hobby was golf.
He is survived by his widow and one
daughter.

May, 1929
individual. Therefore, if there is such
a thing as credit science, it should be
brought into use and a statement, pref­
erably that of an auditor, should be
required. I believe it is the duty of
the banker to require an auditor’s
statement of firms and corporations,
because a statement is of little value
unless it is correct. I do not wish to
insinuate that the average busi­
ness man who prepares his own state­
ment does not supply what he consid­
ers a correct statement. However, he
is not qualified to prepare the state­
ment from an unbiased angle. It is
entirely in keeping with human nature
for a proprietor, or managing officer,
to set forth the most favorable aspects
of the concern he owns or operates.
Furthermore, in most instances he is
not competent to furnish an operat­
ing statement.
Without an operating statement
with a complete analysis of the va­
rious items that go to make up the
balance sheet, you have no positive
way of knowing whether the borrower
is making money or not, and, as in the
case of an individual, this should be
one of the determining factors in pass­
ing on a loan. I have seen some very
satisfactory looking balance sheets, but
the operating statement and a detailed
analysis of the different items of the
balance sheet put an entirely differ­
ent aspect on them. Many times con­
densed statements of assets and lia­
bilities show excellent ratios between
current assets and current liabilities,
but on careful analysis they will shrink
to the point where the loan is not only
unsatisfactory, but may be unsafe.
A balance sheet might show a large
amount of accounts receivable. The
banker has no way of knowing whether
these accounts are good and collectible,
but with a detailed analysis, showing
the individual amounts, and the age
of the accounts, a better idea will be
had of their worth. Notes receivable
are in the same classification and
should be analyzed in a similar way.
Also, the receivables may be too large,
compared to total sales, indicating a
poor sales policy, which results in in­
ability on the part of the firm to dis­
count their bills or perhaps even keep
their credit good.

Im portance o f Inventories
N comparing the inventory with to­
tal sales, it also may need some at­
tention. It too, may be large, indicat­
ing that they have too much stock
on hand or are not getting the turn­
over they should. With too large an
amount of accounts and notes receiv­
able, and too large an inventory, you

I

(Continued on page 94)

WHY
BUSINE! MEN
Are
FAILING
HERE is no question but that a
condition of prosperity pervades
most sections of the country. ’ ’ Thus
begins the latest bulletin of the great­
est hank in the United States. The
statement is true. But it is also true
that many thousands of business men
are failing, and the sound advice and
helpful counsel of the banker are need­
ed as never before.
This paradox of general prosperity
proceeding hand in hand with thou­
sands upon thousands of business fail­
ures can be explained. A few thou­
sand large corporations do most of the
country and these large scale firms are
business of the country and these large
scale firms are prospering. So “ busi­
ness in general” is prosperous. But
many thousand small firms are fighting
for the small amount of business not
done by the great concerns. The over­
whelming proportion of business fail­
ures is occurring in this large group of
small enterprises. A few thousand large
concerns are prospering; many thou­
sands of small businesses are failing.
As long ago as 1920, some 59,000 man­
ufacturers with annual production of
$100,000 or more were producing 93
per cent of all manufactures in the
United States, whereas over 230,000
manufacturers with annual production
of less than $100,000 were producing al­
together only 7 per cent of United States
manufactures. Thus in 1920 a fewT
great manufacturing establishments
numbering altogether only 1/5 of the
manufacturers of the country were
producing over 9/10 of the goods. To­
day a still smaller number of great
firms is producing more that 90 per
cent of the goods. Thus business in
general (the business done by a few
great corporations) may be prosperous,
but that does not deny the fact that
scores of thousands of small businesses
are failing or are plugging along with
little or no profit.
What is going to happen to the
small business man in this period of
business which is witnessing the in­
creasing triumph of the large scale con-

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Federal Reserve Bank of St. Louis

By DR. CLYDE W ILLIAM PHELPS
Head o f Department o f Economics,
Chattanooga University, and
Consulting Economist o f
R . J. Beaman 8C C o.

cern? Is the great movement toward
mergers, consolidations, chain stores,
and super-corporations going to mean
the total elimination of the small man­
ufacturer, merchant and b a n k e r ?
Steadily for more than a quarter of a
century the large scale firms have been
taking the business of the country
away from the small independent busi­
ness man. Is the small business en­
terprise doomed to disappear from the
stage of American economic life?
No, not all small scale enterprises
are to be wiped out, but a tremendous
number are destined to disappear. On­
ly the exceptionally efficient small busi­
ness man can hope to endure in the
gigantic struggle with the super-cor­
porations. There will always be a
place in American economic life for
the small, independent business man
who renders a real service to the pub­
lic. For there will always be condi­
tions in which the personal attention
and personal service of the individual
proprietor can best satisfy certain con­
sumers. But to remain in business
small enterprises must become much
more efficient.
Only the efficient small business man
can expect to successfully withstand
the ever-increasing competition of to­
day. And it appears that a very large
proportion of small business men are
not fitted for the struggle. Why are
they not fitted? Fundamentally, be­
cause most of them are following rule
of thumb procedure instead of apply­
ing science to management. Large
scale business has no copyright or
monopoly on scientific business man­
agement. The small firm can use it as
well as the large. But most of the
small firms do not understand scien­
tific management and do not have vi­
sion enough to call in outside special­
ists to help them to scientifically solve

DR. CLYDE W. PHELPS

their problems. It may be objected
that the small firm can not afford to
call in business advisers and special­
ists. But it can afford to secure much
help this way and it can cooperate
with other small firms to secure the
very highest and most profitable types
of services by outside specialists which
would be too expensive for any one
firm but cost very little when a whole
group stands the expense.
HY have small businesses been
failing at the rate of 20,000 per
year since 1920? Why are they con­
tinuing to fail at this rate? It is not
pleasant to face those facts, nor is it
pleasant to have to admit the reason.
The business man fails because in the
vast majority of cases he alone is to
blame. He does not realize that busi­
ness is no longer a mere trade in which
any one with little or no capital and
with little or no business training can
flounder to success.
Business today is becoming a pro­
fession and it demands scientifically
trained brains for success. Most busi­
ness failures of today are caused by
minds that have not been trained in
scientific business management. Bradstreet’s reports will prove this fact
that the man himself is mainly re­
sponsible for success or failure in
business. Bradstreet separates the
causes of failure due to the individual
from the causes of failure outside of
the control of the individual. About
80 per cent of failures are due to the
faults of those failing and about 20 per
cent of failures are due to causes out­
side of the control of the individual
business man. Bluntly stated, busi­
ness failures are due to the incompe­
tence of the business man. And as
business is becoming more scientific all

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11

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M id-C ontinent B anker

the time it is obvious that the average
business man becomes less and less able
to maintain himself in the world of
business.
Let us notice now some specific prac­
tices of the average small business man
which clearly demonstrate that he runs
his business on rule of thumb methods
and hit and miss procedure instead of
applying science to the administration
of his enterprise. These practices
must be weeded out or the men who
follow them must necessarily go down
on the record as “ failures due to in­
competence. ’ ’
In the first place a lot of unneces­
sary costs stand between the business
man and a possible profit. One of the
main reasons for the continued exist­
ence of unnecessary costs in the small
business is to be found in the fact that
it has no accounting system worthy of
the name. The average small business
man begrudges every cent spent for
accounting or “ bookkeeping,” and
usually does not recognize the differ-

‘B a s i l

ence between bookkeeping and account­
ing. Most often he can not intelli­
gently read an operating statement and
does not realize that a scientific ac­
counting system in his business, that
would present a scientific operating
statement each month, would enable
him to do away with the unnecessary
costs and wastes which are eating up
profits. The balance sheet and the op­
erating statement are looked upon by
many business men as simply being
documents to show to the bank and
other creditors. These men do not
realize that a monthly operating state­
ment can be and should be of the ut­
most value in managing the business
from month to month. In this connec­
tion it should be stated that public
accountants should be of more service
to their business men clients than they
usually are today. Instead of merely
auditing the books of the business
from month to month public account­
ants should stay with the client long
enough to clearly explain the operat-

Is

I.

W ith the

State Bank o f Chicago
ALTER W. HEAD, president of
the State Bank of Chicago, has
announced that Basil I. Peterson, for­
merly vice-president of the Stock
Yards National Bank of Chicago, has
joined the official staff of the State
Bank of Chicago as a second vice-pres-

W

BASIL I. PETERSON
ident. He will be connected with the
bank’s business extension department.
Mr. Peterson was born thirty-nine
years ago at Blair, Wis., is a graduate

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Federal Reserve Bank of St. Louis

of Blair High School, attended St.
Olaf College, Nortlffield, Minnesota,
and later graduated from the Univer­
sity of Wisconsin and the North­
western University School of Law.
He conies to the State Bank with a
broad experience embracing every
phase of commercial banking. Prior
to his war service, he was cashier of
the First National Bank, Blair, Wis.
After the armistice, he received inten­
sive training for foreign branch serv­
ice at the National City Bank of New
York and spent several years at Ant­
werp and Brussels, assisting in the or­
ganization and management of their
Belgian branches.
Upon returning to the United States,
he served the Chemical National Bank
of New York as middle western rep­
resentative witli headquarters in Chi­
cago. Later he was elected vice-pres­
ident of the Stock Yards National
Bank, in charge of their division of
banks and bankers.
Mr. Peterson is a director of the
Wisconsin Club of Chicago and of the
General Alumni Association at Madi­
son; secretary of Group Eleven, Illi­
nois Bankers Association.
Mr. Peterson enjoys a large acquain­
tanceship among the bankers through­
out the Middle West and has been a
familiar figure at the various state
conventions and group meetings.

May, 1929
ing statement and advise the client in
the light of the statement. I f busi­
ness men could only understand the
tremendous value of having a scien­
tific accounting system with monthly
or quarterly audits and consultations
with their public accountants, they
would soon find that they could easily
afford the reasonable cost of this serv­
ice from outside specialists. When
they come to understand that account­
ing used in this way is a tool of scien­
tific management, an eliminator of
losses and a producer of profits, they
will wonder why they ever thought
accounting was only bookkeeping and
a dead expense.
Profits are being lost by many busi­
ness men through the carrying of un­
profitable items, dead stock, or too
large stock. That is to say profits are
lost by lack of scientific inventory con­
trol or stock control. Again it may
be objected that the stock control sys­
tem would cost too much for the small
enterprise. Some systems now used
would be too expensive for certain
small concerns but newer and simpler
systems are being worked out for va­
rious lines and are relatively inex­
pensive to install and operate. One
system is “ so simple as to be under­
stood and installed by any business
man with little or no additional clerk
hire.” Systematic stock control sys­
tems have been installed in thousands
of businesses with consequent weed­
ing out of unprofitable items, reduc­
tion of money invested in stock, in­
crease of sales, and increase of dollar
profits. It is possible for the small
business man to afford a scientific
stock control system in his business
or at least to join in with his trade
association in splitting the expense of
creating such a system to be installed
in the members’ stores.
Many other unscientific practices of
the small business man might be dis­
cussed such as striving after volume
without regard to costs; the employ­
ment of unsound credit practices; the
performance of unnecessary delivery
service; the setting up of stores with­
out scientifically measuring the size of
the market to be catered to; the plan­
ning of the inside of stores without
regard to the scientific location of de­
partments; the absence of any budget;
the haphazard training of sales forces,
etc. Surely these practices, which all
will admit are widespread, are not the
result of the use of science. They
could not continue to exist and swal­
low up the profits of the business man
if scientific method were applied to
the solution of business problems.
They exist and bring certain failure
(Continued on page 94)

A Suggested Balance Statement
Resources

“ A sound l o a n
policy for the av­
erage bank can be
worked out with al­
most

mathematical

precision.”

“ The whole note
Local Loans
Secured by real estate $260,000
Secured by collaterals
200,000
End. and Unsecured. .
260,000
Secondary Reserves...........
Banking House, E. & F .. .
Cash Reserves ......................

380,000
60,000
180,000

(1 /3 of time deposits)
(20% of the deposits)
(25% of the deposits
or 50% of note case
as max.)

case should be in
constant flux.

A

stationary note case
will ‘set’ like con­
crete.”

Total............................. $1,340,000
Liabilities
Capital

....................................

$100,000

Surplus ....................................
20,000
HERE are about 27,Undivided Profit ................
20,000
000 banks in the
Deposits
United States and of
Due on Demand...........
400,000
these at least two-thirds
Due on Tim e.................... 800,000
are in small communities
of five thousand popula­
Total............................. $1,340,000
tion or less and have a
capitalization of $25,000
or less. They are the
country banks.
Since 1920 there have
been suspensions of more
than 15 per cent of all
banks and it is probably
safe to assume that of
such suspensions at least
85 per cent were in the
ranks of these country
banks and raises the ques­
tion of why they are the
more vulnerable.
Newspaper reports al­
most invariably ascribe
the cause of suspension to
‘ ‘ frozen assets ” u n t i l
now when we read it, we
gather that the frozen as­
sets are the result of eco­
CALVIN F. SCHWENKER
nomic conditions a n d
that no blame attaches
Commissioner o f Banking, State o f Wisconsin
to the executives and di­
rectors of the suspended institutions. ed it forced a crisis. The poor judg­
“ Frozen assets” is a very kind term ment was not so much in the individ­
because it is offered in extenuation of ual case as in the aggregate.
economic forces in operation. It is
true that there have been unforeseen
T h e W r o n g Idea
changes in conditions but it is equal­
HERE seems to be a very preva­
ly true that the great bulk of institu­
lent idea among the directors of
tions have successfully met them. The
answer is that the survivors have used country banks—first, that they have a
better judgment. I do not mean to im­ mission to develop their respective
pute that the executives and directors communities at any cost. Second—
of the suspended banks deliberately that every application for a loan made
took unwarranted risks. They did not. locally by any person of reasonable
Each loan when made was probably responsibility and character must be
satisfactory and as the conditions granted. Third— that all deposits re­
changed and it became a problem, it ceived must remain in the community
could still have been worked out over for investment. Fourth— that s u c h
a period of years if it had been the local loans and investments should be
only one in the note case. But when held year after year so that the bor­
it was one of many all similarly affect- rower need not be inconvenienced by

T


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Federal Reserve Bank of St. Louis

A
Sound
Loan Policy

being forced to repay and
disturb a capital loan, or
the bank forced to admit
that it could not collect
all of its loans without
loss. In a very large
number of cases there was
little consideration given
to the rights of the de­
positors. That the invest­
ment of his d e p o s i t s
should be so diversified
that he might demand and
receive his money at any
time without disturbing
local loans does not seem
to have been accepted as
a sound policy.
But consciously or un­
consciously every b a n k
has developed a policy of
some sort no m a t t e r
whether it be sound or un­
sound. The d i r e c t o r s
may not even recognize
it as a policy but it is in
operation, nevertheless.
In analyzing the note
cases of hundreds o f
banks each year I have
become convinced that a
sound loan policy for the average
bank can be worked out with al­
most mathematical precision. When
measured up against the averages
which I will submit, the note cases of
the sound, conservatively managed
banks and those showing satisfactory
profits will be found to fall very close
to the schedule.
In making these percentages, non­
customer commercial paper and call
loans are excluded because they are
more properly treated as secondary re­
serves.

Country Bank

T

D ep osit Ratios
HE usual ratio of demand deposits
to time deposits in Wisconsin is
1 to 2. One-third of the deposits must
have the utmost protection. The cash

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13

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M id-C ontinent B anker

reserve required by our laws is 12 per
cent of all deposits regardless of
whether they are time or demand but
practically we find the conservative and
sound banks show a cash reserve aver­
aging 20 per cent. Those which have
developed secondary reserves by invest­
ments in commercial paper, call loans,
bankers’ acceptances, and bonds ac­
count for another 20 per cent or more
of the deposits, which leaves 60 per
cent of all deposits as the maximum
available for local lending.
I f there is a proper ratio between
deposits and combined capital invest­
ment of, let us say, 10 to 1 and the

average country bank lias a capitaliza­
tion of $50,000 or less, it may be safe­
ly assumed that the investment in
banking house, furniture and fixtures,
other real estate, etc., is made from
capital investments and the amount of
free capital remaining will not have
any appreciable effect on the 60 per
cent for local investment.
Assuming that the local loans do
not exceed 60 per cent of deposits, how
much can be safely invested on real
estate security? Most farm mortgages
run from three to five years and while
some of the loans on city and village
properties are for shorter periods, it

Bank o f America

and Central Truil

Complete M erger in Chicago
HE final chapter in the consolida­
tion of the Bank of America, Chi­
cago, with Central Trust Company of
Illinois was completed April 22 when
the enlarged Central Trust Company
opened for business in new quarters at
208 South La Salle Street.

T

May, 1929
is safe to say that the average life will
be all of three years and they consti­
tute a long time investment. Certain­
ly it is not sound to make long term
loans from demand deposits so the
basis for such investment should be
the time deposits. They are usually
on a yearly basis and with the real
estate loans averaging three years, we
conclude that the maximum investment
in those loans should not exceed from
30 per cent to 40 per cent of the time
deposits.
In some of our laws and in prac­
tice by most of the largest investors
in mortgages, it is decreed that the
amount of the loan shall not exceed
50 per cent of the value of the prop­
erty. I f loans had been made on such
a basis in the past by banks, much of
the other real estate now reported
would be in the hands of individual
owners. The land values have slump­
ed generally but in most places not to
the extent of wiping out all of the
borrower’s equity on a 50 per cent
basis. By conservative lending the
bank can have a sound investment
based on real estate and need not view
with aversion an application for a real
estate loan if the amount required is
not more than 50 per cent of the value
of the property and the aggregate of
mortgages is less than 40 per cent of
time deposits. The secondary reserve
provides protection against demand de­
posits and permits the bank to carry
the mortgage to maturity and for even
longer periods. Experience has shown
us that only a very small proportion
of the three or five year loans are paid
at maturity and the loan policy must
take this fact into consideration.

pany, affiliated with Central Trust,
purchased the business of the Conti­
nental National Safe Deposit Company,
which had been located at 208 South
La Salle, and retained its officers and
employes.
A few days before the change in lo­
cation, Eugene V. R. Thayer, a figure
of national prominence in banking,
railroad and industrial circles, was
added to the directorate of Central
Trust Company and was made chair­
man of the executive committee.
Mr. Thayer, who was formerly pres­
ident of the Chase National Bank of
New York and prior to that, president
of the Merchants National Bank of
Boston, will resume the role of active
banker, taking up his residence in Chi­
cago, after a retirement from direct
participation in the field for the last
two years, to attend to broad personal
Character Loans
interests.
C.
Howard Marfield, formerly pres­
VERY bank is called on to make
ident of the Bank of America, has been
_ character loans by which I mean
elected chairman of the discount com­ loans which are not secured by tangible
mittee and vice-president.
collateral. They are the endorsed and
James G. Alexander will continue as discounted notes and those entirely un­
executive vice-president in addition to secured. In every community there
which he is scheduled to become presi­ are a large number of individuals, co­
dent of the Central Securities Com­ partnerships and corporations of good
pany, the investment organization of standing who are worthy of credit.
the consolidated banks.
The bank must accommodate them.
In addition to the above men, the But to what extent of the note case
ranking officials of Central Trust Com­ can it be safely done? From our ob­
pany include: Charles G. Dawes, chair­ servation we have concluded that not
man of the board; Joseph E. Otis, more than half and then under certain
president; M. E. Greenebaum, vice- conditions.
Every unsecured line should be sup­
chairman of the board; Edwin F. Mack,
vice-president and chairman of the ported by a current financial statement
advisory committee, and William R. if the amount is $500 or more. The
comptroller of the currency and many
Dawes, vice-president.
Central Trust Company now has cap­ of the state departments make this re­
ital stock of $10,500,000, surplus of quirement and in passing upon credit
$7,500,000, deposits of $128,000,000 not only the current statement should
and resources of $160,000,000.
(Continued on page 68)

E

EUGENE V. E. THAYER
Although the legal merger of the two
banks took place several months ago,
their physical merger was deferred un­
til the new quarters were ready. At
208 South La Salle, Central Trust Com­
pany occupies the street and main
banking floors, underground safe de­
posit floor and parts of several other
floors in a building which covers an
entire block.
Every man and woman on the staff
of the two uniting offices was retained
when their business was combined. In
addition, Chicago Safe Deposit Com
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Federal Reserve Bank of St. Louis

Bandit Proof Equipment Inspire:
Confidence
HE Protective Committee of tlie
By J. H . WISE
American Bankers Association in
session at Edgewater Park, Missis­
President, The J. H . W ise Company, Inc.,
sippi, declared that banks are to blame
St. Louis
for liold-up losses. This outstanding
fact can not be disputed; the daily hold-up in twenty-five does he meet
news substantiates this charge. When any resistance, the get away being
women, single-handed, resort to hold­ most important.
Industrial plants guard the lives of
ing up banks, as happened in Denver
and Los Angeles last month, it does employes with safety devices and as
seem like “ taking candy
from the kids.”
In southern Illinois last
month, two bandits, not
satisfied with all the cash
they scooped up, insisted
the cashier present his
cash book for their in­
formation ; they wished
to be certain he was not
holding out on them.
In Detroit, Michigan,
and Hammond, Indiana,
last month, two banks
were held up; both banks
having armed guards in
protected and strategic
positions. The bandit in
Detroit gave the cashier
a note demanding all the
money in sight—in his
coat pocket was a gun
pointed at the cashier.
A teller suspicioned some­
thing wrong and signaled
the guard, who acknowl­
edged the signal. How­
ever, he could see noth­
ing unusual among the
customers in the lobby
and, being instructed to
exercise caution before
Bandit and hullet-proof installation, Wellston Trust
shooting anyone, the ban­
St. Louis, Mo.
dit walked out with ap­
proximately $2,000.
At
Hammond, the cashier was made to a rule carry insurance for further pro­
carry the money to the automobile, he tection. The bank employe, to my way
at all times being between the guard of reasoning, is like a policeman; when
he leaves home, he does not know
and bandits.
whether
he will come home feet first or
These fellows are smart, late prac­
tice being to take an employe along in otherwise. He is an easy set up for the
the get away to avoid being shot at. bandit. Should he make a movement
The bandit who presents a note, as with his foot, trying to reach a sig­
a rule is a one man job. This method nal, as is often the case, there is a
creates no confusion. This fellow is new face at the window tomorrow.
called a “ note bandit.” The holding Officers and employes should have pro­
up of banks is less hazardous than tection, the same as the funds of the
ever, no doubt from the fact that the bank.
Insurance rates are increasing an­
bandit finds it easy to outsmart the
banker. I would say that in not one nually, and why not, when there is no

T


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Federal Reserve Bank of St. Louis

protection or resistance against hold­
ups. I have from bankers their rea­
sons for equipping with the modern 100
per cent bandit and bullet proof in­
stallation. Here are some of the rea­
sons :
The protection of the lives of offi­
cers and employes.
20 per cent reduction on insurance.
The confidence of customers in the
protection of funds.
The bad effects result­
ing from hold-ups.
This installation leaves
the unprotected the vic­
tim.
Bandits will not hold
up a bank that is 100 per
cent protected.
There is no mainte­
nance cost.
Business is transacted
in less time.
The absence of doubt
and fear when a stranger
enters.
The moral effect is
most beneficial.
The assurance to our
customers of our endeav­
or tct serve and protect
their interest, we deem
most important.
Guards, t e a r
gas,
alarms, etc. are but par­
tially protective.
Mod­
ern vaults require too
much effort and risk to
break in; it is when the
money is out of the vault
it is easy to get. Conse­
quently the cages, work
Company,
space and opening there­
to should be protected
with the latest devices,
which will insure against hold-ups, and
permit of armed defense at no risk
whatever. A bank thus equipped is
practically immune against hold-ups.
Naturally the unprotected being easy
prey.
The counter screen in most banks
is a necessity for protection. Early
practice had the counter screen eight
feet from the floor ; it has been re­
duced to seven feet, and in a great
many designs to six feet and less, thus
creating a pleasing and unobstructed
effect generally.
Banks, particularly in the smaller
15

16

cities, are installing bandit and bullet­
proof equipment. When the banks
generally avail themselves of the mod­
ern bandit and bullet-proof installa­
tions against daylight hold-ups, then
this pirate and murderer will natural­
ly seek the unprotected. At heart he
is a coward; he will not attempt a
daylight hold-up of a bank that has
what is termed a 100 per cent bandit
and bullet-proof installation.
These
installations are such that the em­
ployes have the advantage. They can
shoot the bandit and he can not shoot
them; neither can he get behind the
cages. He is at all times within range
of the gunports.
There are no movable wickets or
windows; in fact, no opening anywhere
that a bullet can pass through. Your
thought is, well, how can you pass the
money and saving banks; how can you
converse through an inch of solid
glass; what about a package or large
pay roll?
The passing of money, etc., is taken
care of with a bronze deal tray, having
the inside back of soft bronze with
bullet-proof steel lining. Should a
bullet be fired under the glass it
would pass through the soft bronze,
doing no damage, against the steel lin­
ing. Immediately above the deal tray
in the cashier’s window there is an
aperture of hardened bronze, the top
being an amplifier, the lower part a
gunport; these are set at the prop­
er height permitting of natural con­
versation.
The gunport is kept closed under
tension; the man on the inside has on­
ly to push the barrel of a pistol
through. Large packages are handled
through a pass tray. These are in
three sizes: the smaller sizes can be
set in the glass, the larger one should
be placed in the fixture below counter
and under window. There is no
chance to shoot through the trays, be­
cause when they are open in front,
they are closed in the back. Speaking
apertures and gunports are made sep­
arately and can be placed anywhere
in strategic location.
I f the bank fixtures are wood, there
is hardened steel lining y8 inch thick
that should be used to line the inside.
This is also necessary on doors and
pilasters, etc. The top of cages should
be protected with bullet-proof wire.
This is made of heavy steel wire with
four open meshes to the inch, and will
resist a .45 calibre steel jacketed bullet.
Bullet resistant glass is a product
designed in such a manner as to pro­
vide great strength and resistance to
penetration in the finished product,
and more especially, to resist bullets
from firearms.

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Federal Reserve Bank of St. Louis

M id-C ontinent B anker
Bullet resistant glass may be secured
to furnish any degree of bullet resist­
ance desired. Ordinarily, three differ­
ent grades may be desirable, but glass
suitable for resistance to bullets fired
from any and all types of revolvers is
most commonly used.
Revolver resistant glass is made by
using polished plate glass, approxi­
mately three-sixteenths of an inch
thick, for the two outer layers and
one-half inch polished plate glass for
the core or center plate. The flexible,
transparent binding material, which is
placed between the core plate and each
of the outer plates, is approximately
.20 inch thick, and the completely lami­
nated assembly averages approximate­
ly one inch in thickness, with a manu-

May, 1929

mass action off the back plate will re­
sult in no worse than fine particles of
glass chipping away, and no matter
how badly the product may be shat­
tered by continued bullet shock, a
similar test will show the entire sur­
face of the binding material covered
with a film of glass firmly held by the
weld. The weight of this type of glass
is about eleven pounds per square foot,
uncrated, or fifteen to sixteen pounds
crated for shipment.
By increasing the thickness of the
core and the outer layers of glass, or
by varying the combinations and num­
ber of layers, glass may be produced
that will resist penetration by heavier
type of firearms, even to high powered
rifles and machine guns. For instance,
glass with % inch core plate and meas­
uring 1y8 inch to 1Ya inch thick over­
all will stop a sawed off shotgun us­
ing a solid 20-gauge lead ball. Simi­
larly, by using four layers of glass and
finishing 1% inch minimum thickness,
effective resistance to heavy shotguns
and other arms uji to rifles is provided.
For ordinary use, however, the revolver
resistant glass serves every require­
ment satisfactorily and efficiently.
This glass can not be cut or ground
to size after manufacture, so it is nec­
essary that exact, accurate sizes be
furnished with orders if the shapes are
rectangular or circular. I f irregular
shapes are required templates or pat­
terns should be furnished with orders.
This glass can be drilled, ground and
polished, and otherwise worked the
same as ordinary glass, but such work
must be done before the glass leaves
Bandit-Proof Teller’ s Window Installed the factory, so that complete instruc­
tions for this work must accompany
at Wellston Trust Co., Wellston, Mo.
orders. It can be etched, chipped or
facturing tolerance of one-sixteenth of sandblasted to produce ornamental sur­
an inch over or under one inch, due face patterns.
It would be well to go carefully in­
to the variation in thickness common
to all plate glass. This type and thick­ to the purchase of such an installation.
ness of glass will resist at least from They are not all 100 per cent protec­
three to five bullets of all known makes tion, and the weak spot is sufficient to
and types of revolvers, fired into an destroy its entire effectiveness, result­
area three to six inches square, at the ing in the loss of the expenditure.
May I refer to a certain institution
most effective ranges of any revolver
that may be used. Due to the strength in Detroit where a bandit and bullet­
and tightness of the patented welding proof installation was made that look­
process, there will be no appreciably ed one hundred per cent protected.
dangerous mass action off the outside However, one day the last patron in
plate opposite from the surface of the line at the busy window had what re­
glass at which the bullets are fired, as sembled a large package of bills neat­
is common with glass laminated ly wrapped so one end showed paper
through welding with gelatins or other money. This he held so as to be plain­
similar adhesive materials, which al­ ly seen by the cashier who, of course,
most invariably results in small sec­ smilingly opened the bullet-proof win­
tions of the back plate flying entirely dow to receive the large deposit. As
free from the transparent binding ma­ the window opened the package was
terial, leaving the latter smooth and put through with one hand— the other
free of glass as can be determined by held an automatic pistol. Under the
rubbing the fingers. Sufficient bullet dummy package was a small, neatly
shock on glass to cause any degree of
(Continued on page 83)

National City Bank and Farmers
Loan & Trust Consolidate
HARLES E. MITCHELL, presi­
dent of the National City Bank
of New York, and James H. Perkins,
president of the Farmers Loan and
Trust Company, have announced that
the hoard of directors of the two in­
stitutions have agreed on terms for the
affiliation of the trust company with
the bank. Meetings of the stockhold­
ers of both institutions will be held in
the near future to approve the trans­
action.
The shares of the capital stock of
the trust company will be placed in the
hands of trustees to be held for the
benefit of the shareholders of the Na­
tional City Bank in a manner similar
to that in which the capital stock of
the National City Company, which is
the bank’s security affiliate, is now
held.
The name of the trust company will
probably be changed to City Bank
Farmers Trust Company. It will de­
vote itself entirely to the administra­
tion of trusts and will take over, as
far as practicable, the trust business
of the National City Bank.
On the other hand, the commercial
banking business of the trust company
will be taken over by the bank.
The stockholders of the trust com­
pany will receive, when all necessary
corporate steps have been completed,
five shares of stock of the National
City Bank for each share of stock in
the trust company. This will result in
an increase of the capital of the bank

C

GORDON S. RENTSCHLER


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

from $100,000,000 to $110,000,000. It
is planned that the trust company will
have a capital of $10,000,000 and a
surplus of the same amount.
Charles E. Mitchell will become
chairman of the trust company, and
James H. Perkins will continue as its
president and will become a director
of the bank. All of the present offi­
cers and entire organization of the

The new building, which the trust
company is about to erect to replace
its present building at 22 William
Street, between Exchange Place and
Beaver Street, immediately to the
south of the head office of the bank at
55 Wall Street, will be designed to
meet the special needs of an organiza­
tion devoted solely to the handling of
trust business.

trust company will be retained, and
will be supplemented by the personnel
of the trust department of the bank.

R. MITCHELL also announced
that the board of directors of
the bank had approved the following
administrative changes in the bank
and the National City Company, which
will be effected at the next regular
meetings of their boards of directors.
Mr. Mitchell will become chairman
of the bank and of the National City
Company, as well as of the trust com­
pany. Eric P. Swenson, chairman of
the board of the bank since 1921, will
retire from that office but will con­
tinue as a director. Gordon S. Rentschler, since 1923 a director and since
1925 a vice-president and assistant to
the president, will become president
of the bank. Hugh B. Baker, since
1917 a vice-president of the National
City Company, will become president
of that company and will become a di­
rector of the bank. The by-law
changes necessary to invest the office
of chairman with executive powers will
be made in the three affiliated institu­
tions.
Charles Edwin Mitchell, now cliair-

-TAMES H. PER K IN S

HUGH B. BA K E R

M

CHARLES E. M ITCHELL

17

18

M id-C ontinent B anker

man of the board of all three institu­
tions, was born in Chelsea, Massachu­
setts, in 1887. He graduated from
Amherst in 1899. He became connect­
ed with the Western Electric Com­
pany and when he left it in 1906 to
join the Trust Company of America as
assistant to the president, he had work­
ed up to the position of assistant to
the president. In 1911 he resigned to
make a study of finance and industry
in Europe and upon his return organ­
ized his own investment banking firm
of C. M. Mitchell & Company. In
1916, when the National City Com­
pany was organized, he became vicepresident of the company and in 1921
he became president of the bank.

James H. Perkins, president of the
new City Bank Farmers Trust Com­
pany, was born in Milton, Massachu­
setts. He graduated from Harvard in
1898 and was employed in an execu­
tive capacity by Walter Baker & Com­
pany, Ltd., from 1898 to 1906. From
there he went to the National Commer­
cial Bank of Albany and later became
its president. In 1914 he became vicepresident of the National City Bank
of New York. During the war he
served with the Red Cross and later
he joined the service, at the end of
the war being a lieutenant colonel.
He became president of the Manufac­
turers Trust Company in 1921.
Gordon S. Rentschler, now president

iMississippi 'Valley Trull Organizes
Separate Securities Company
HE Mississippi Valley Company,
a securities corporation with cap­
ital of $1,000,000.00, has been organ­
ized by the Mississippi Valley Trust
Company of St. Louis, and is now
transacting a general investment busi­
ness. Offices are in the quarters for­
merly occupied by the bond depart­
ment of the Mississippi Valley Trust
Company.
John R. Longmire, vice-president of
the Mississippi Valley Trust Company

T

JOHN R. LONGMIRE
and former president of the Missis­
sippi Valley Group of the Investment
Bankers Association of America, is
president of the new company; Benj.
F. Frick, Jr., and Samuel B. Blair are
vice-presidents; Edgar L. Roy is treas­
urer; James F. Quigg, secretary; Or­
ville Grove, John M. Bowlin and
George F. Claves, assistant vice-pres­
idents; and William J. Lavery, assist­
ant secretary.
The new corporation, which will

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

take over the activities of the bond,
mortgage loan and special tax depart­
ments of the trust company, is in line
with the modern trend of large finan­
cial institutions. Its purpose is to
broaden the scope of the trust com­
pany’s investment activities as a re­
sult of the public tendency toward
purchase of equity shares.
The new company is one of the few
securities corporations to be launched
in St. Louis by the larger commercial
banks, and marks the expansion into a
separate corporation of the first bond
department organized by a commercial
bank of St. Louis. The Mississippi
Valley Trust Company’s bond depart­
ment was organized in the early 90’s.
Although under consideration for
some time, due to the interested pub­
lic participation in stock investments,
formation of the new unit was accel­
erated by the recent merger of the
Mississippi Valley Trust Company, the
Merchants-Laclede National Bank and
the State National Bank into the third
largest commercial bank in St. Louis.
The entire capital stock of the new
company is owned by the Mississippi
Valley Trust Company, and when the
physical merger of the three institu­
tions is completed, the new company
will be owned by the consolidated in­
stitutions as a subsidiary.
The company maintains a New York
office at 52 William Street, in charge
of John M. Bowlin, assistant vicepresident, and a Chicago office in the
Illinois Merchants Building, in charge
of William J. Lavery, assistant sec­
retary.
Incident to the expanded scope of
the new company, announcement has
been made of the offerings of an in­
vestment trust and of several convert­
ible corporation and utility bonds.

May, 1929
of the National City Bank, was born
in Hamilton, Ohio, and went to school
at Princeton, where he graduated in
1907. He entered his father’s foun­
dry in Ohio after finishing school.
During the war Mr. Rentschler’s
plants were turned over to large scale
production of marine engines. After
the war he became interested in sugar
and made many trips to Cuba in this
connection. It was while here that he
first became associated with the Na­
tional City. He became a director of
the National City Bank in 1923 and
two years later was elected vice-presi­
dent and assistant to the president of
both the bank and the company.
Hugh B. Baker, now president of
the National City Company, came to
New York immediately upon finishing
school to enter the investment busi­
ness. He joined the National City
Bank in 1924 and two years later when
the National City Company was form­
ed he joined it. In 1917 he was made
vice-president in charge of sales and
distribution, at that time being only
35 years old.

N e w N igh t A ir M ail Service
in E ffect M a y 1
Banks, now the second largest users
of the air mail, will have their checks
and other interest-bearing paper trans­
ferred at even greater speed after
May 1, when schedules on the 2,680
mile transcontinental air mail route
are changed to permit a 31-hour coast
to coast delivery. In announcing the
new schedules, the American Air
Transport Association says twelve
hours will be saved over present sched­
ules by the completion of lighting for
night flying between Salt Lake City
and San Francisco. Planes, which
formerly arrived at costal terminals
too late in the afternoon for delivery
of mail the same day will now arrive
early in the morning in time for the
first delivery.
The planes will leave both coasts
at 8 :00 p. m., after the close of offices,
and will deposit the mailbags at the
opposite terminal the morning of the
second day.
The new service will be known as
the night transcontinental and will
be in addition to the present day serv­
ice. Both schedules will effect not on­
ly cities along the transcontinental
airway but also those on any one of
the 19 connecting routes which now
extend into all parts of the country
and link together 116 cities into one
airway network of more than 20,000
miles.

mudge
Meets
W ith the
AVING gone over the books and
accounts of the Waterville Sav­
ings Bank, State Bank Examiner Au­
gustus J. Smudge has now called the
Board of Directors together, and is
ready to review with them the results
of his examination. Present are five
directors: The Chairman, the Oldest
Director, the director from “ down
Hingham way, ’ ’ the
Deaf Director, and
Cashier Duffelburg.)
Chairman: W e l l ,
gentlemen, I believe
you’ve all met Mr.
Smudge here, t h e
bank examiner who
is making the regular
examination of our
business. There are
some things he wants
to go over with us,
and this meeting is
called for that pur­
pose. P l e a s e
go
ahead, Mr. Smudge.
Smudge: In verify­
ing the accounts of this bank, I find
several irregularities, such as excessive
overdrafts, unpaid checks carried in
the cash balance, securities held else­
where unevidenced by receipts— and
other similar matters which will be
considered as we come to them. For
the present, I wish to call attention to
the fact that the Borrowers’ State­
ment file is incomplete—inexcusably
so—thus making it necessary for me
to take up the investigation of several
lines which might have been passed
without comment had the statements
been adequate. (Examines note-book.)
First I have listed a loan of $432.00
to Adam Bixwell, three months past
due, no interest paid. W hat’s the sit­
uation there, gentlemen ?
Deaf Director: H ow ’s that ?
Chairman: Director W i l l i a m s is
pretty deaf, Mr. Smudge. Y ou’ll have
to raise your voice a little.
Smudge: (Slightly nettled, shouts a
repetition of his question.)
Oldest Director: Let’s see, now—I
don’t know about that there loan;
ain’t that the Bixwell that married the

H


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

By ROSCOE M A C Y
oldest Starrett girl— old Eph Starrett’s
son-in-law ?
Cashier Duffelburg: No, no; this is
the other Bixwell. He married one of
the Slocum sisters, from down your
way, Amos (nodding toward the Direc­

tor from “ down Hingham way” ).
Oldest Director: You don’t mean
Sadie Slocum? Why, I went to school
to her grandmother, back in Indiany.
She was plenty strong on book-learn­
ing, all right, but a little weak on dis­
cipline. Why, I recollect the time
when me and one of the Holloway
boys-----Smudge: What about this Bixwell
paper, now? What has he got?
Director From “ down Hingham
way” ; Let me see, now he’s got a
hundred and sixty-seven acres—or it
is a hundred and sixty-nine?— anyway,
it ’s a fractional quarter up in Hickory
Holler. Just across the road from the
old Miller estate, and-----Smudge: How much against it?
Duffelburg: Why, n o t h i n g. I t ’s
clear.
Smudge: Owe any other debts.
Duffelburg: Not a penny.
Smudge: Then why hasn’t this note
been paid, or renewed? Doesn’t sound
quite reasonable, if you’ll excuse me.

Duffelburg: Why, people up Hickory
Hollow way have been snowed in ever
since the first of the year. I don’t
suppose Adam’s been to town in seven
or eight weeks. I ’d have mailed him
a renewal, but the mailman hasn’t
been able to make that route for two
months now.
Smudge: Well, if you men are sure
this note’s all right,
w e’ll pass it; under
the circumstances, I ’ll
not even refer to the
fact that it ’s past
due.
Now, here’s a note
on feeding c a t t l e ,
with a small balance
unpaid, but your rec­
ords indicate that the
cattle have been sold.
Duffelburg: Y e s ,
that’s the A a r o n
D a v i s note.
He
struck a poor mar­
ket, and didn’t hold
his money together
on them; he’s good for the balance,
though.
Deaf Director (cupping his hand be­
hind his ear) : How? W hat’s that
you say?
Duffelburg (shouting) : I say, Aaron
Davis— cattle note—poor market!
Deaf Director: Oh, yeh. Puts me
in mind of the time the feller out
Kansas way shipped in a load o ’ sheep,
and they didn’t bring enough fer to
pay the freight, so they wired him fer
to send more money fer to pay up the
freight bill, and he wired right back:
‘ ‘ Got no money; sending some more
sheep.” Heh! heh! heh!
Smudge (somewhat impatiently) :
You say this Davis is good for the
balance of his note? All right—
what’s he got ?
Duffelburg explains that Davis is a
well-to-do tenant farmer, with no other
indebtedness.
Smudge (impressively) : Now, I find
one excess loan in your note-case, and
if I ’m not mistaken, it ’s on one of
your directors. (Eyeing the Deaf Di­
rector.) Aren’t you J. H. Williams?
19

20

M id-C ontinent B anker

Deaf Director: H ow’s that? I ’ll say it ’s an excess loan, and you’ll have
have to ask you to speak louder, sou;
to take up the excess.
my hearing ain’t so good.
Deaf Director: Oh, sure; I ’m gonna
Smudge (loudly) : I say, isn’t your take it up, all right, pervidin’ Les
name J. H. Williams ?
can’t pay it. That there loan’s all
Well, I find two $5,000 notes here, right, bub; don’t you worry about that
both signed by you—one jointly with one minute.
S. H. Griggs, and the other with Les­
Smudge: But you’ll have to take it
ter Griggs. That makes $2,000 or bet­ up at once; I can give you a reason­
ter in an excess loan.
able time to raise the money, but it
Deaf Director: You say I ’d better must be taken out within thirty days,
let Les alone? Well, mebbe you’re and so reported to the department.
right, young man; mebbe you’re right.
Deaf Director: You mean you want
But you see he’s my sister’s youngest me fer to pay that note, son? Well,
boy, and I thought I ’d just help him I s ’pose what you say goes. (Turns
out a little, bein’s he’d had a bad to Duffelburg, who starts to interrupt,
and then changes his mind.) Bring
year.
Smudge (desperately): No, no! I me my s ’tificates, Bert.

H enry J. Cochran Is N e w President o f
Bankers Trust, N e w York
ENRY J. COCHRAN, for the past
twelve years a vice-president of
the Bankers Trust Company of New
York, has been elected president of
the bank. He succeeds A. A. Tilney,
who assumes the newly created posi­
tion of vice-chairman of the board of
directors, of which Seward Prosser is
chairman. It was announced that both
Mr. Prosser and Mr. Tilney will con­
tinue to take a part in the bank’s af­
fairs no less active than heretofore.
Mr. Cochran becomes the fifth pres­
ident of the Bankers Trust Company.
His predecessors in that office were
Edmund C. Converse and Benjamin
Strong, late Governor of the Federal
Reserve Bank of New York, in addi­
tion to Mr. Prosser and Mr. Tilney.
Mr. Cochran began his business ca­
reer with the American Locomotive
Company in 1901, a year following his
graduation from Princeton University.
After becoming chief statistician of
the company, he left in 1907 to enter
the accounting business. Three years
later the accounting firm of Patterson
& Cochran was formed. His active
connection with this firm lasted until
1912, when he was invited to become
vice-president of the Astor Trust Company of which E. C. Converse was then
president. When the Astor Trust Com­
pany was merged with the Bankers
Trust Company in 1917, Mr. Cochran
became vice-president of the Bankers
Trust Company in charge of its Fifth
Avenue office. In 1922 he was brought
to Wall Street as head of the banking
department. He has been a director
of the company since November 17,
1925.
Mr. Cochran is a director of the
American Smelting and Refining Corn-

H


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

pany, the Astor Safe Deposit Company,
the Home Life Insurance Company and
a trustee of Franklin Savings Bank.
Born at Mendham, N. J., on April
8, 1879, he spent his early school days
in Morristown, N. J., and entered
Princeton University, where he was on
the staff of the Daily Princetonian and
a member of the Cap and Gown Club.
Lie was graduated with an A.B. de­
gree in 1900 and then spent fourteen
months in touring the world.
Since 1922, Mr. Cochran has been
a life trustee of Princeton University.
Bankers Trust Company of New
York, an inspiration of the late Henry
P. Davison, was founded twenty-six
years ago, with a capital of $1,000,000,
surplus of $500,000 and deposits of
$5,748,000. Its latest published state­
ment shows total resources of $658,614,903, a capital structure of $102,498,380 and deposits of $473,501,535.
Stockholders last week voted to in­
crease the number of shares from 250,000 to 2,500,000, changing their par
value from $100 to $10.
Last year the bank commemorated
its twenty-fifth anniversary by increas­
ing its annual dividend from $20 to
$30 a share, declaring an anniversary
bonus to all employes and later increas­
ing its capital stock from $20,000,000
to $25,000,000.
In addition to its main office in its
building at Wall and Nassau Streets,
the Bankers Trust Company maintains
four other offices, each independent in
its operations of its own transactions
with customers—the Fifth Avenue of­
fice at Forty-Second Street, an office
at Fifty-Seventh Street and Madison
Avenue and two foreign offices in
Paris and London.

May, 1929
(Duffelburg departs, returning in a
moment with a sheaf of certificates of
deposit. Smudge stares at them with
open mouth.)
Deaf Director: Pick out enough of
them to pay off both notes, Bert— and
be sure you pick the ones that’s got
interest due. I f I have to pay Les’s
note, I ’ll pay Sam’s, too; gonna treat
’em both alike. ’Druther they’d owe
the bank than me— never did hold with
loanin’ money to relations—but I reck­
on I ’ll either make or save three per
cent interest on this deal, anyhow.
Smudge (a new note of respect in his
voice) : You understand, Mr. Williams:
This excess loan was a clear violation
of law, and I have no choice but to
demand its removal?
Deaf Director: Now, that’s all right,
young man. Law’s law, and I dunno
but what I ’m better satisfied this way,
anyhow. I ’m keepin’ outa jail, and
makin’ three hundred dollars a year,
besides. Well, let’s get on with our
rat-killin’.
Smudge: The following lines I have
classified as Capital Loans. I hope
you will be able to show good reduc­
tions on them from time to time----- Hingham Director: I f they’re good
loans, why do you want them reduced?
Smudge: I didn’t say “ good” loans;
I said “ capital” loans. Not liquid,
you know. (Reading list of capital
loans, he comes to the “ G ’s ” )—Lester
Griggs, $5,000; S. H. Griggs, $5,000.
Deaf Director: Eh? H ow’s that?
Oldest Director: But them notes is
paid.
Smudge (coloring a little) : Oh, yes,
to be sure. My mistake, gentlemen.
Deaf Director: What was that
about Les and Sam, now?
Duffelburg (maliciously) : T h e i r
notes wasn’t liquid, J. H.
Chairman: Now, Bert— and all you
gentlemen of the board, we must re­
member that no rule can be made that
will fit each particular case. The Com­
missioner’s regulations are conscien­
tiously drawn to guard against what
experience has indicated to be danger­
ous tendencies. The examiner’s duty
is to reconcile theory with practice in
each particular examination, and I
think we’ll find, when Mr. Smudge
sums up his findings, that he knows
his business. Just now, he is dealing
with the theory. Go ahead, Mr.
Smudge.
(With this clearing of the air, the
session proceeded to an early conclu­
sion without further incident. The
Chairman lingered for a chat with the
examiner.)
Chairman: Had some experience at
(Continued on page 93)

In Building a Bank Structure, a Great Deal of
Thought Should Be Given to Future Requirements
and the foundations, the amount of
HY are massive columns so often
excavation necessary, and the cost to
By
HARRY
PENN
used in the fronts of bank build­
transport the materials to or from the
District Engineer, American Institute of
ings ? To cause the appearance of
site.
Steel
Construction,
Inc.
great strength and stability. The ar­
The fabrication of steel is carried
chitects hope these will cause the pub­
lic to think that great financial sion by a coating of paint will carry on in valuable plants. The parts made
strength also exists within the doors. its burden practically forever. No in these factories can easily be in­
These columns may be only a gesture, matter where it is bought in the United spected for workmanship and accuracy
during or after the
but the materials of
c o n s tr u c tio n . In
which a bank build­
fact, there is scarce­
ing is constructed
ly nothing of the
have become more
human element that
and more i m p o r ­
can interpose that
tant.
might make the fin­
In p l a n n i n g a
ished steel frame
building, the archi­
defective. The fab­
tect and engineer
ricated steel parts
together create a
must fit together ac­
frame on which is
curately. They can
hung an o r n a t e
not be jammed to­
cover, t h e o u t e r
gether. The struc­
walls and roof. The
tural steel fabrica­
i n t e r i o r o f the
tor
assumes respon­
frame is divided in­
sibility for e v e r y
to various spaces to
job, as reputation is
match the needs of
a definite capital­
the work to be car­
ized value with him.
ried on within the
Machines do not
structure. The in­
fail to turn out the
terior decorations,
same thing repeat­
walls, c e i l i n g s ,
edly.
Human be­
floors, and even the
ings have m i n d s
exterior walls in the
with all the vaga­
higher buildings are
ries and lapses that
carried o n t h i s
are implied. It is
The Newburgh Savings Bank, Newburgh, New York. Steel trusses span
frame. Anyone in­
obviously better to
the
width
of
the
building
and
give
a
60
by
14
feet
floor
space
free
of
terested in the con­
use a material that
columns.
struction of a bank
is least affected by
s h o u l d , therefore,
study the advantages of the various States on standard specifications, struc­ human elements. Steel conies from
the shop with every detail of strength
materials of which the frame may be tural steel will have the same great
andaccuracy easily checked up. After
strength
melted
into
it
at
the
furnace
constructed.
it is erected in its place in the frame
Structural steel, the aristocrat of and unalterable by time.
of a building, its connections to other
The weight that a building frame is
building materials, has many advan­
parts or any other detail may again be
tages to offer. These may be outlined made to carry can be divided into two inspected. Nowhere need there be
classes: the weight of the contents doubt as to the ability of this material
as follow s:
which
will be the same regardless of tosatisfy its
1.
Definite and measurable physical
designer. Structural
the
type
of construction, and the steel frames have full strength when
characteristics.
2.
Economies of interior areas orweight of the material of which the erected. There need be no waiting in
building is constructed. Steel weighs a steel building to see whether human
space.
3. Structural value of the building. less than any other materials designed errors have lowered its strength below
to carry the same load. Since the its designer’s assumptions.
TEEL is the strongest building ma­ lower part of the structure must carry
HE layout or space arrangement
terial known to man. Its strength the weight of the upper part, it is
of the bank building is very im­
is predetermined by arrangement of evident that saving will result from
the chemical elements in its making. using steel. The saving resulting from portant. The main floor, where con­
It retains that strength unchanged by the use of this material will be appar­ tact occurs with the public, must be
time, and if protected against corro- ent in the size and weight of columns,
(Continued on page 79)

W

S


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Federal Reserve Bank of St. Louis

T

21

What About Loans to Merchants?
Chain Store Competition and Changing Buying Habits of the
Public Are Responsible
is a popular
occupation in America; a busi­
ness that is followed by a very large
number of our people. One commer­
cial credit agency reports 2,199,000
commercial firms in 1928. 1.08% of
these firms “ went on the rocks” dur­
ing that year.
The ratio of failures in 1928 was the
heaviest in thirty years except in the
years 1908, 1914, 1915, 1922, which
were years following a period of panic
or unusual depression. The heaviest
ratio of fatalities during the five year
period, 1924 to 1928, has been in those
lines which have had an increasing
growth in the competition from chains,
and it is significant that the increase
in merchant’s failures during the past
five years is in direct ratio to the
increase of competing chain units.
There have been very few chain store
failures and it is interesting to know
that the chains have been showing
earnings quite in proportion to their
increased number and volume.
Chain competition, however, is not
the only problem facing the merchant.
The buying habits of the public are
undergoing a radical change. Busi­
ness is being concentrated towards
the centers, and the opportunities of
the old-fashioned country store and the
general merchandise emporium are
gone. In their going have come chang­
ing problems for these merchants, and
their hanks, and corresponding radical
changes in the banker’s methods and
processes of the extension of credit.
There are certain external factors
relating to the problem over which
neither the banker nor the borrower
have any control, and there are many
internal factors relating to the prob­
lem that are within the borrower’s and
banker’s control, and some of these
problems must have our careful con­
sideration before making the loans.
What are the local business condi­
tions? What are the local conditions
in the particular line under considera­
tion? What are the general business
conditions and prospects as affecting
the borrower’s trade? Losses may be
avoided if the bank takes cognizance
with its borrower of the trend in the
borrower’s particular branch of busi­
ness. What abolit its chain and other
competition ? What about the finan-

for Increasing

Commercial Failures

e r c h a n d is in g

M

22


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Federal Reserve Bank of St. Louis

<By BEN JO H NSON
President, Commercial National Bank
Shreveport, Louisiana

cial ability of the community to ab­
sorb the borrower’s line? What about
the competition in the similar lines
with the larger stores in the nearby
centers now so easily available with
improved roads and transportation fa­
cilities? Losses may be avoided by
the banker’s giving thought to the
V l--------------------

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" N o m erchant’ s
account should
be carried where
adequate and p ro­
portionate balances
are not maintained ”
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larger aspect of his business even
though the individual borrower’s ap­
plication may be worthy and analyze
satisfactorily. How much local loans
will general business conditions of the
community justify the banker in car­
rying? Will not the intelligent bank­
er preserve the liquidity of his own
portfolio by avoiding an excess of
local loans even though his local bor­
rowers and local conditions may check
out Okey?
HE chief internal factor affecting
loans to merchants remains the
same, the three C ’s of Credit— Char­
acter, Capacity and Capital, ranking
in the order listed, are still the back­
ground for the extension of credit.
Assuming that the borrower has a
liberal supply of the element of char­
acter essential to success and that he
is above the average in point of ca­
pacity (whatever that is) my thought
is, in this day when aggressive and
capable competition is at every mer­
chant’s door, unless he has more than
the average capacity, there would ap­
pear little to justify a bank in taking
on the account. But, having both

T

character and capacity, there appears
more need now than in days past for a
careful study and analysis of the finan­
cial statement. And in making refer­
ence to the financial statement, I have
in mind the necessity for a complete
statement that will reflect in detail the
merchant’ s operations. Certainly the
need is now emphasized and the bank­
er ivill insist, in extending open cred­
its to merchants, that the standard
ratios of the balance sheet of current
assets to current liabilities and total
debt to net worth, etc., should be re­
quired. Every bank, however small,
should give more attention to scientific
credit analysis and, with such agencies
as the Robert Morris Association avail­
able, any banker may now have for a
minimum expenditure of money and
time, someone in its organization cap­
able of making a scientific statement
analysis.
And what about this statement?
More and more banks and others ex­
tending credit will insist that audited
statements shall be furnished and that
these statements shall completely and
in detail reflect the operations of the
firm. The recent failure of a large
hardware concern in the Southwest
came as a complete surprise to a great
many creditors as the company’s af­
fairs had been regularly audited by a
well known firm of auditors. But be­
cause of jiersonal friendships extend­
ing over a period of many years, the
auditors’ confidence in the company’s
officers had been misplaced and the
officers had been able to conceal an
enormous loss that had accrued in ob­
solete and worthless items in inven­
tories. This case suggests a new
thought that auditors ought sometimes
to be changed in order to be effective
and ought preferably to be engaged by
boards of directors rather than by in­
dividual officers of a corporation.
Where should the line be drawn in
requiring audited statements ? I can
not answer but it would be a comfort­
able feeling, I am sure, to know that
('very open commercial credit in your
bank of $5,000 or $10,000 or more, was
supported by an audited statement in
your credit files.
We have come to learn now that the
balance sheet ratios alone, nor the op­
erating ratios alone, are a sufficent
(Continued on page 55)

May, 1929

M id-C ontinent B anker

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Over Private Wires

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The Mississippi Valley Trust
Company has private wire facilities to
N ew York, Chicago, and other ¿inportant cities o f the United States.
By this means the business o f our

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correspondents requiring unusual speed
is handled more efficiently.
This unusual facility is typical o f the
Mississippi Valley’s constant efforts to
excel in giving service to its customers.

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Federal Reserve Bank of St. Louis

S A I N T

L O U I S

BÆSÊ

The Bi. ; bprmgs Country o f the
Missouri Ozarks
HE big springs of the Ozarks,
natural wonders that have no
parallel anywhere, give to the Mis­
souri Ozarks region a charm and
uniqueness destined to make them
known far and wide. They are a
source of mystery more or less—their
flow of water that, in some instances
varies none whatever and in other in­
stances registers the seasons, is al­
ways of an even tem­
perature and in quan­
tities that fairly stag­
ger the imagination.
There are Ozark leg­
ends to the effect that
these big springs are
the surface outpour­
ings of some great sys­
tem of underground
rivers that in some
manner underlie the
whole Ozark area and
at a few favored spots,
come to the surface to
contribute to the list
A
o f natural wonders.
In most instances the
big springs issue through a rock As­
sure at the bottom of a pool so deep
that by the time the rushing waters
come to the surface, its force is spent
and there is but a slight agitation ap­
parent on the surface as though a pot
of water were being brought to a boil
over: a fire. However, when one looks
at the outlet of that pool and witnesses
the rushing torrential cascade of
waters, crystal clear and cold as a
mountain snow stream, he realizes the
tremendous flow that is going on be­
neath his gaze.

T

These big springs are possessions
that the Ozarks have which will be
found nowhere else. Their cold water
means successful propagation of game
fish and the Ozarks are becoming
known the country over as an ideal
vacation land. One of the most at­
tractive features of the Ozarks for
many people who are seeking a vaca­
tion spot that will be
different somehow than
the usual modern re­
sort, is the fact that
even until now, the
Ozarks are still more
or less primitive.
There are p l a c e s
where the modernist
may find all that his
heart desires in the
way of artificial vaca­
tion stimulus, a n d ,
thank Heaven, there
are places w h e r e a
fisherman can go and
not be disturbed for a
mirror-like pool in the heart of the Ozarks.
week. In fact, that is
HE next largest measured by the one of the charms of the place and
. Missouri Bureau of Geology and even with the injection of up to date
Mines in cooperation with the United ideas of territorial development, it will
be many and many a summer yet be­
States Geological Survey, is the Greer
fore some of the fastnesses of those
Spring, 9 miles north of Alton. The
Ozark counties are penetrated and de­
flow here in 24 hours is 539,000,000 spoiled by a too modern civilization.
gallons at its maximum, and 97,000,000
For those who like more of the com­
gallons at the minimum. From these forts of home along with their vaca­
monsters they range on downward and tion scenery, progress is fast bringing
there are dozens of them throughout into the Ozarks the equipment that is
the Missouri Ozark region that flow essential. The prospect of more hard
from a million gallons of water a day roads throughout the area as a reupward.
( Continued on page 54)

One of these springs known as “ Big
Spring,” situated four miles south­
east of Van Buren in Carter County
on Missouri State Highway No. 16,
flows enough water in each 24 hour in­
terval to supply the entire cities of
St. Louis and Kansas City combined
with their daily consumption of water
for all purposes.

T

Blue Spring, located near Greenville.

24


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Federal Reserve Bank of St. Louis

A rugged scene in the Piedmont Canyon.

M id-C ontinent B anker

May, 1929

Auto Dealers’
Profics
Increase

115

N 1927 The Studebaker Corporation of America organized a
Systems Division to assist its dealers in making better profits.
During that year 65 dealers asked for the co-operation of this
department. The total profits of the group for the year were
$436,655.49.

I

For the year 1928 this same group of dealers reported net
profits of $941,121.55, an increase of 115.76% over 1927.
There are substantial profits in retailing the up-to-the-minute
line of beautiful, powerful Studebaker automobiles.
T o guide and protect the dealer Studebaker offers:
A ccou n ting System
Budget Control
Sales Procedure
Courses in Salesmanship
Service Schools
Piece-Rate— Flat-Rate Service System
Used Car Pledge
Used Car Merchandising Plans
Advertising
Price Protection
— and much other co-operation.

STUDEBA KER

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Federal Reserve Bank of St. Louis

America’s Friendliest Factory

25

M id-Continent B anker

26


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Federal Reserve Bank of St. Louis

oAt
Excelsior Springs
M a y 16 and 17
MR. H . Y . LEM ON
Vice-President

MR. F. B. B R A D Y
Vice-President

MR. F. C. H A S K E T T
Special ^Representative

will represent

(ommerceyrust (ompany*
'Resources Exceed 10 0 ¿Millions
K A N S A S C I T Y , M IS S O U R I

May, 1929

MISSOURI CONVENTION SECTION

Missouri Bankers W ill Meet at
Excelsior Springs«, May 1647
First Session
Thursday Morning, May Sixteenth
Ball Room, Elms Hotel
9:30 O’clock Sharp
9 :30 Singing led by Sandy Sinclair.
10:00 Convention called to order by
the president,
Alfred A. Speer.
Invocation
Rev. C. Bridenthal, E x c e l s i o r
Springs. Pastor, Woods Memo­
rial Christian Church.
10:05 Address of the president,
Alfred A. Speer.
10:35 Presentation of reports of the
secretary and the council of admin­
istration,
W. Frank Iveyser.
10 :40 Report of the treasurer,
R. Waldo Holt.
10:50 Report of the auditors,
Peat, Marlick, Mitchell & Com­
pany, accountants and auditors.
11:00 Address,

Officers
GEO. S. H O V E Y
President
J. M. H E L L IN G S
Vice-President
D A V ID T. BE A LS
Vice-President
A. B. C H R ISM AN
Cashier
F. B. M OORE
Assistant Cashier
G. H. JAMES
Assistant Cashier
J. J. N OON E
Assistant Cashier
G. S. B R A D B U R Y
Assistant Cashier
ROBT. B. H O V E Y
Assistant Cashier


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Federal Reserve Bank of St. Louis

Craig B. Hazlewood, Chicago,
President, American Bankers
Association.
11:35 Announcements and adjourn­
ment of first session.
11:45 Meetings of groups—Ball Room,
Elms Hotel;
Each to elect a member of the
nominating committee.
Second Session
Thursday Afternoon, May Sixteenth
2:00 O’clock Sharp
2 :00

Called to order by the president.
Presentation of reports of the fol­
lowing committees: Rewards,
W. E. Carter, chairman; Legis­
lation, Thomas C. Hennings,
chairman; County organization,
R. R. Ridge, chairman; Taxa­
tion, J. E. Gann, chairman;
Stabilization of the mono}7
standard, E. H. Zimmerman,
chairman.
2 :30 Address— 11Law Enforcement ’ ’
Hon. Stratton Shartel, Jefferson

The
Inter-State National
Bank
Kansas City, Missouri
Located in the Live Stock E x­
change Building, at the Kansas
City Stock Yards
Capital, Surplus and Undivided
Profits $1,500,000.00

St.

City, Attorney-General of Mis­
souri.
3 :05 Address,
John McHugh, New York City,
chairman of the executive com­
mittee, Chase National Bank.
3 :40 Address,
James E. Goodrich, Kansas City,
vice-president and general coun­
sel, Commerce Trust Company.
4:20 Announcements and adjourn­
ment of second session.
4:30 Meeting of committee on nomi­
nations, Committee Room (Circle A,
Elms Hotel) to nominate president,
vice-president and treasurer of the
Association for the ensuing year.
Third Session
Friday Morning, May Seventeenth
9:30 O’clock Sharp
9:30 Singing led by Sandy Sinclair.
10:00 Called to order by the presi­
dent.
Invocation
Rev. J. Frank Baker, Excelsior

,

Joseph

Is located near the junction
point of four great states—
where business concentrates.
In this trade territory the
Burnes National Bank offers a
reliable and prompt banking
service.

Over forty years of dependable
banking service

The Inter-State Cattle
Loan Company
is owned pro rata by the stock­
holders of the Inter-State Na­
tional Bank and has Capital and
Surplus of over $850,000.00.
Furnishes guaranteed c a t t l e
loans to customers of the InterState National Bank.

Burnes National Bank
St. Joseph, Missouri
Geo. A. N elson ...................................... President
C alvin C. B urnes ................................ Vice-Pres.
John J. W a l s h .......................................... Cashier
O liver F. R o t h ................................. Asst. Cash.

J. W . K ost ........................................... Asst. Cash.

" iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiin iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiE

C onvention Program

M id-C ontinent B anker

May, 1929
Springs, Pastor M e t h o d i s t
Church.
10:05 Presentation of reports of the
following committees :
Agriculture, Chris R. Maffrey,
chairman; Analysis and service
charge, Clyde D. Harris, chair­
man; Education and public re­
lations, G. V. Kenton, chairman.
10 :25 Address— ‘ ‘ Smoke. ’ ’
Ernest Palmer, Chicago, manager
and general counsel, Chicago
Board of Underwriters.
11:05 Address,
Hon. H. H. Bond, Washington,
D. C., assistant secretary of the
Treasury.
Announcements and adjourn­
ment of third session.
Representatives of members of
the American Bankers Asso­
ciation will meet to elect :
(1) Two members of the A.
B. A. Executive Council to
serve three years; (2) vicepresident A. B. A. for Mis­
souri to serve one year; (3)
Member A. B. A. Nominat­
ing Committee; (4) Alter­
nate member A. B. A. Nom­
inating Committee; (5) vicepresidents for Missouri of
the following A. B. A. Di­
visions; (a) State Bank Di­
vision, (b) National Bank
Division, (c) Trust Company
Division, (d) Savings Bank
Division.

illllllilllllllllllllllllllllllllllllllllllllllllllllilllllllllllllllllllllilllliu

1

1

The Kansas City Stock Yards
An Outstanding Live Stock Market

M

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and Packing Center
The W orld's Largest Stocker and Feeder
Market, the second largest slaughtering point in
the United States, a great market for stock hogs
and pigs and one of the most important markets
for stock and feeding sheep.
The ability of Kansas City to serve a large producing territory on one hand and a large demand
territory on the other, is due to location, railroad
mileage, modern, efficient stock yards facilities,
and the healthiest live stock at any market in the
world.
Kansas City bought stock, whether fat, in
feeder flesh or for breeding purposes, is a guarantee for quality, vigor, proper handling, careful
selection and breeding.
Buy your fat cattle, hogs and sheep in Kansas
City. Supplies are available at all times.
Look over the supplies of stock and feeding
cattle, hogs and sheep in Kansas City and you
will make it your regular buying point for thin
stock.

1

1

2 :00

Buying evenly graded well bred cattle, by
weight, at the Kansas City Stock Yards is the
best and most economical.
55

1

1

Fourth Session
Friday Afternoon, May Seventeenth
2:00 O’clock Sharp

Kansas City Offers Outstanding Service
in Live Stock Lines
Buy in Kansas City—

The Kansas City Stock Yards Company

llllllllllllllllllllllllllllllllllllllIllllllllllllllllIM

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Federal Reserve Bank of St. Louis

|
|
§

ü

Called to order by the president.
General discussion on legal and
practical banking questions, con­
ducted by William M. Martin,
governor of St. Louis Federal
Reserve Bank. Topics to be
discussed : 1. Chattel Mortgages ;
2. Excessive Loans; 3. Bankers’
Acceptances.
4:30 Report of committee on resolu­
tions,
W. C. Gordon, chairman.
4 :45 Unfinished Business.
New Business.
4:55 Report of committee on nomina­
tions.
Election and installation of offi­
cers.
Presentation of past president’s
emblem.
5 :20 Announcements and final ad­
journment.
5 :30 Meeting of the new council of
administration, composed of the
president, vice-president, secretary,
treasurer, and group chairmen for
the ensuing year, and the three di-

M ay, 1929
rectly preceding presidents of the
association— Committee Room (Cir­
cle A, Elms Hotel).
Annual Golf Tournament
Wednesday, May Fifteenth
Excelsior Springs Golf Club
The Joplin Cup is the championship
trophy. It will be offered this year
for the third time. For permanent
possession, this trophy must be won
three times on low medal score for
18 holes.
Additional pries will be awarded in
18-hole handicap events, as follows:
Flight A, Sores under 88 Prize: dou­
ble pen desk set.
Flight B, Scores 88-94 Prize: Sil­
ver water pitcher.
Flight C, Scores 95-100 Prize: Golf
bag.
Flight D, Scores 101-110 Prize: Book
ends, bronze “ Pirates.”
Flight E, Scores 111-Up Prize: Silver
tee box.
Special Prizes
1. Greatest number of holes in 3
Prize: Silver buckle and belt.
2. Lowest score on two “ blind” holes
Prize: Cigarette lighter.
3. Each hole made in 2 Prize: 1 golf
ball.
4. Greatest number of holes in 8
Prize: Golf stockings.
5. Highest gross score Prize: Book,
“ How to Play G olf.”
The contest for the Joplin Trophy
open to officers and directors of reg­
ular members only. Other contests
open to officers and directors of all
members.
No player eligible for more than one
prize.
The south 18 holes will be played
and the north 18 holes will be reserved
for M. B. A. members who do not en­
ter the tournament and for visitors.

F . A . A . to H o ld Business
Building M eth o d s C ontest
A prize contest for business build­
ing methods has been announced by
Preston E. Reed, executive secretary
of the Financial Advertisers Associa­
tion. The campaign is open to all
members of the Association, which in­
cludes a majority of the larger banks,
trust companies and investment houses
of the country.
The contest is in line with the Asso­
ciation’s policy of promoting better
advertising and business building meth­
ods. The contest is now open and will
close on August 10. The best plans
will be selected by a committee con­
sisting of Julian M. Case, Dime Sav­
ing Bank, Detroit; Virgil D. Allen,
First Bank and Trust Company, Utica,

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Federal Reserve Bank of St. Louis

29

M id-C ontinent B anker

S T A T E M E N T O F C O N D IT IO N

Drovers National Bank
KANSAS CITY STOCK YARDS

KANSAS CITY, MISSOURI
M A R C H 27, 1929

R E SO U R C E S
Loans and D isco u n ts........................$5,581,340.02
Less Unearned D isco u n t.................
44,120.36 $5,537,219.66
132.45
Overdrafts ....................................................................
15.000. 00
Banking Room Furniture and Fixtures
24.000. 00
Stock in Federal Reserve Bank.............
88,307.47
Foreign and Industrial Bonds...............
253,204.57
School and Other Municipal Bonds. ..
U. S. Bonds ........................................ $1,043,344.29
4,077,416.97
Cash and Sight Exchange............... 3,034,072.68
$9,995,281.12

L IA B IL IT IE S
Capital ............................................................................... $ 600,000.00
Surplus ...............................................................................
200,000.00
Undivided Profits ..........................................................
128,840.05
Reserved for Taxes and Interest................................
38,243.79
Dividends Unpaid ..........................................................
15,000.00
Due Federal Reserve Bank.........................................
364,837.31
Deposits .........................................................................
8,648,359.97
$9,995,281.12
The above statement is correct
D ean T. D avis, Cashier
O F F IC E R S A N D D IR E C T O R S
H. L. Jarboe
President

G eorge Y oung
Vice-President

D ean T. D avis
Cashier

D. K. S nyder
Assistant Cashier

D. W . W oolley
Assistant Cashier

W . R. Y oung
Assistant Cashier

N elson M orris
Chicago, Illinois

G eorge R. Collett
Pres., K. C. Stock Yds. Co.
Kansas City, Missouri

Clifford H isted
Kansas City, Missouri
Harkless & Histed
Attorneys

John G. Groves
Kansas City, Missouri
Groves Brothers, Real Estate

B en F. D reyfoos
Kansas City, Missouri
Ranchman

W . H. W eeks
V.-Pres., K. C. Stk. Yds. Co.
Kansas City, Missouri

H. S. B icket
Geni. Mgr. W ilson & Co.
Kansas City, Kansas

iMember Kansas City Clearing House oAssociation
“ The D R O V E R S is always represented at all Bankers’ Conven­
tions in the Middle W est”

30

M id-C ontinent B anker

1847

1929

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BEBE

May, 1929
N. Y .; Henry C. Ochs, Winters Na­
tional Bank and Trust Company, Dayton; J. A. Price, Peoples Savings and
Trust Company, Pittsburgh; Robert D.
Mathias, Depositors State Bank, Chi­
cago; C. E. Auracher, Cedar Rapids
Savings Bank and Trust Company,
Cedar Rapids; and Paul Bollinger,
Harris, Small & Co., Detroit. Awards
will be made at the Association Con­
vention in Atlanta, October 30.

iw jwimmn ^

Schalk Again H eads St.
Louis Com ptrollers
Oscar G. Schalk, comptroller of the
Mercantile Trust Company, has been
reelected chairman of the St. Louis
Conference of Bank Comptrollers and
Auditors. Other officers elected were
Fielding Hollocher of the First NaFirst Home of the Boatmen’s Bank
No. 16 Locust Street

With a background of more than 82
years of banking experience, the
Boatmen’s National offers a dis­
tinctly worth-while correspondent
service.

OFFICERS
JULIUS W . REIN HOLDT, President
LE ROY C. BRYAN, Vice-President and Cashier
AARON W ALDH EIM
Vice-President

EDGAR L. TA YLO R
Vice-President and
Trust Officer

J. HUGO GRIMM
Vice-President and Counsel

F. LEE MAJOR
Vice-President

ALBERT W AGENFUEHR
Vice-President

C. C. H AM M ERSTEIN
Assistant Cashier

H. ALFRED BRIDGES
Assistant Cashier

R U D O L P H FELSCH
Assistant Cashier

O LIVER W. KNIPPENBERG
Assistant Cashier

OSCAR G. SCHALK

tional Bank, vice-chairman, and A. H.
Hanser, of the Mercantile Trust Com­
pany, secretary.
The St. Louis Conference is affiliated
with the National Association of Bank
Comptrollers and Auditors, which is
sponsored by the Clearing House Sec­
tion of the American Bankers Associa­
tion. Fourteen banks and trust com­
panies are represented in the local con­
ference, which has thirty-six members.

Excelsior

T rust

C om p a n y

M o v e s In to N e w H o m e

Capital .......................... $2,000,000.00
S u rp lu s..........................
750,000.00


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

The Excelsior Trust Company, Excel­
sior Springs, Missouri, is now located
in its fine new building at the corner of
Thompson Avenue and South Street.
The building has been entirely remodel­
ed and now affords ample facilities for
every banking need.
In addition to a spacious lobby, fin­
ished in genuine American walnut, there

is a ladies’ room, customers’ room and
directors’ room. The safe deposit vault
contains six hundred boxes and is pro­
tected by a door weighing 70,000
pounds. There is also a storage vault
and book vault located at the rear of
the spacious working quarters.
Since 1922 the bank has enjoyed a
consistent growth in resources of about
$100,000 a year, and total resources are
now more than $600,000. Deposits of
the bank are approximately $500,000,
and capital is $80,000.
Officers are: C. A. Risley, president;
G. E. Wilson and J. M. Summers, vicepresidents; Ogden C. Risley, secretarytreasurer; F. R. Hull, assistant treas­
urer; J. E. Weitzel, assistant secretary;
and Wm. A. Craven, trust officer.

St.

Louis

31

M id-C ontinent B anker

May, 1929

Bank

Installs

D istinctive Clock
The South Side Rational Bank of
St. Louis has recently installed a rather
unusual clock in the tower of its new
building.
The big clock is operated by elec­
tricity from a master clock in the in­
terior of the bank, and at the quarter
hour, half hour, three-quarter hour and
hour rings out the time of day.
The clock structure itself weighs

OVER

51 %
There are 1503 Banks in the 8th Federal Re­
serve District in Illinois and Missouri.
779 of these banks carry an account with
The National Stock Yards National Bank, OR
O V E R 51%.

W e would welcome an opportunity to discuss
our proposition with bankers of this district.

The
National Stock Yards
National Bank
of N a t io n a l C it y
N A T IO N A L

ST O C K Y A R D S , ILL.

New Clock at South Side National Bank,
St. Louis

3,500 pounds, is 11 feet high and a
little over 4 feet square. The dials
are over 30 inches in diameter and are
very unique in design and construction.
The finish of the clock throughout is
black and white and the total effect is
most striking and deep. Above each
dial is the name of the bank in black
and white art glass panels. The entire
clock case is brightly illuminated at
night.

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

O. J. S u ll iv a n , President
H. W . K ramer , Vice-President

R. D. G ar v in , Cashier

R. E. L a w , Vice-President

J. W . M in t o n , Ass’t Cashier

W . H. L a n d , Vice-President

H. G. W

al l ,

Mgr. Bond Dep’t

32

M id-C ontinent B anker

Î
i
i

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!

¿Missouri Bank N ew s

i
i

i
i

Î
i
i
j
I
Î

May, 1929

A. A. S peer
President

i

O FF IC E R S M ISSO U R I BAN KERS A S S O C IA T IO N : President, A. A. Speer, presi­
dent, First National Bank, Jefferson City; vice-president, F. B. Brady, vice-president,
Commerce Trust Company, Kansas City; treasurer, E. N. Van Horne, cashier,
American National Bank, St. Joseph; secretary, W. F. Keyser, Sedalia; assistant
secretary, E. P. Neff, Sedalia.
GROUP CHAIRM EN : 1— W. L. Weaver, cashier, Hannibal National Bank, Hannibal;
2— E. C. Brownlee, cashier, Brownlee Banking Company, Brookfield; 3— C. S.
Berndt, cashier, Farmers State Bank, Stanberry; 4— F. C. Barnhill, cashier, W ood &
Huston Bank, Marshall; 5— L. L. Will, assistant cashier, Lowell Bank, St. Louis;
6— L. C. Leslie, cashier, First National Bank, Oran; 7— Chas. F. Ellis, cashier,
Citizens’ Bank, Marshfield; 8— H. A. Richardson, vice-president, Conqueror First
National Bank, Joplin.
GROUP SECRETARIES: 1— V. J. Howell, cashier, Kirksville Savings Bank, Kirksville;
2—James M. Smith, cashier, Osgood Banking Company, Osgood; 3— J. E. Barnes,
cashier Round Prairie Bank, Fillmore; 4—J. E. Hurley, cashier, Sedalia National
Bank, Sedalia; 5— J. J. Gowman, president, Peoples Bank, Bonne Terre; 6— John M.
Himmelberger, secretary, Morehouse Trust Company, Morehouse; 7— W. S. Pettit,
vice-president, Union National Bank, Springfield; 8— O. H. Keran, cashier, Farmers
State Bank, Lockwood.

The five banks of Mexico have voted
to establish a monthly service charge
of 50 cents to cover costs of small ac­
counts, to become effective in the fall.
The Barnard State Bank
Farmers and Citizens Bank
nard have been merged under
of the Farmers State Bank of
with a capital of $40,000.

and the
of Bar­
the name
Barnard,

Frank Hollingsworth has been elect­
ed a director of the North Missouri
Trust Company of Mexico.
The Farmington State Bank has
been opened with a capitalization of


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

$25,000. Officers of the bank are: W.
A. Loga, president; J. I. Annable, vicepresident; E. A. Ebersole, cashier.
J. M. Jayne has been elected pres­
ident of the Scotland County National
Bank at Memphis to succeed the late
Granville Daggs.

i
i

i
i

i
W . F. K e y ser
Secretary

i
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equipment as a protection against day­
light hold-ups.
The McDaniel National Bank of
Springfield has installed a night de­
pository.
E. C. Mason, vice-president of the
Community State Bank of Kansas
City, has resigned.

Luther M. Dozier, cashier of the
North Missouri Trust Company of
Mexico, is dead.

W. It. Walkup, president of the
Farmers Bank of Gower, died recently.

The First National Bank and the
Farmers and Merchants Bank of Cape
Girardeau have installed tear gas

James W. Harris, president of the
Harris-Polk Hat Company of St.
Louis, has been elected a Class C di-

W e believe that increase o f deposits as shown—
March 27, 1929 ...................... $4,653,049.79
March 27, 1917 ......................
1,391,821.50
In crea se................................. $3,261,228.29
indicates our service is satisfactory.
M ay w e serve you in Jefferson C ity?

Total resources over $5,200,000
Officers
A. A. S peer, President
W m . B auer, Vice-Pres.
E mil S chott, Cashier
W. E. Z uendt, Vice-Pres. F red W. Jens , Asst. Cash
M. R. B uersmeyer, Asst. Cashier
VIEW OF LOBBY

i

Largest Bank in Central Missouri

May, 1929
rector of the Federal Reserve Bank of
St. Louis.
The Dent Bank and the Farmers and
Merchants Bank of Salem have been
merged.
Carl Teeter has been elected assist­
ant cashier of the Missouri State Bank
at Jasper.
Charles McCune has been elected as­
sistant cashier of the Bank of Greentop to succeed Earl Peterson.
John E. Wagner, president of the
Clay County State Bank at Excelsior
Springs, has been elected president of
the Clay County Bankers Association.
Other officers are: Sidney Williams,
Smithville, vice-president; Gale B.
Fox, North Kansas City, secretarytreasurer.
The Peoples Trust and Savings Bank
of Cliillicothe has taken over the busi­
ness of the Bank of Utica.

33

M id-C ontinent B anker

J. R. D o m i n i c k , President
J. C. E n g l is h , 1st Vice-President
F. H. W oodbu ry , J r ., Vice-Pres. and Cashier
R. L. D o m i n i c k , Vice-President
F. L. A l e x a n d e r , Asst. Cashier
A . H. E l l io t t , Asst. Cashier
CONDENSED O F F IC IA L STATE M E N T
OF T H E

Traders National Bank
OF KANSAS C IT Y , M ISSO UR I
At the Close of Business March 27, 1929
RESOURCES
Loans and Discounts .................................................................................................. $2,243,661.88
United States Bonds and Premiums ........................................................................ 1,550,850.00
Other Bonds ....................
376,160.00
Stock in Federal Reserve Bank ................................................................................
9,600.00
Furniture and Fixtures ............................................................................................
15,000.00
Real Estate ..................................................................................................................
8,175.00
Accrued Interests on Bonds Not Collected ..........................................................
26,888.86
2,300.00
Customer’ s Liability Account Letters of Credit Issued ......................................
Cash and Sight Exchange ........................................................................................ 1,400,262.87
TOTAL

......................................................................................................... $5,632,898,61

L IA B IL IT IE S
Capital Stock ................................................................................................................ $ 200,000.00
Surplus and Net P r o fits ..............................................................................................
136,885.27
Interest Collected Not Earned .................................................................................
14,929.23
Letters of Credit UnderCustomer’s Guarantee ...................................................
2,300.00
Deposits ........................................................................................................................ 5,278,784.11
TOTAL

.......................................................... ............................................. $5,632,898.61
The above statement is correct.
F. H. W oo dbu ry , J r ., Vice-Pres and Cashier.

Wash Noah has been elected cashier
of the Bank of Mt. Moriah to succeed
J. H. Powers, who recently resigned.
Ray Winegardner has been elected
cashier of the Ballard Bank at Bal­
lard to succeed Jake Kedigh, who re­
cently resigned.
The recent statement of condition
of the City Bank of Kansas City shows
total resources in excess of $9,000,000
and deposits of over $8,300,000. In­
vested capital totals $1,004,899.64, and
it is an honor roll bank.
The recent statement of condition
of the Bank of Odessa shows total re­
sources in excess of $990,000 and de­
posits of over $860,000. Capital is
$50,000 and surplus and profits total
more than $80,000, making it one of
Missouri’s honor roll banks. Officers
of the bank are: J. C. Calfee, presi­
dent; J. F. Martin, vice-president;
Walter Powell, cashier.
The Farmers Bank of Cole Camp and
the Citizens Bank of Cole Camp have
been merged under the name of the
Citizens-Farmers Bank of Cole Camp.
A new building is to be built for the
National Bank of North Kansas City.
C. A. Caslavka has been elected cash­
ier of the Bank of Minden at Minden
to succeed H. C. Chancellor, who re­
cently resigned.
The Farmers and Merchants Bank
of Westphalia and the Bank of West­
phalia have been merged.
William Meidbrink has been elected
a director of the Overland State Bank
to succeed the late T. V. Phelps.

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

LOWELL BANK
3960

WEST

FLORISSANT

STREET

ST. LOUIS

Capital $200,000.00
Surplus, Undivided Profits and Reserves $307,000.00
Total Resources over $4,871,000.00

Member
Federal Reserve
System
“ A

ROLL

OF

H O N O R

B A N K ”

A Progressive Bank—
Capital Stock . . . .
$ 2 0 0 ,000
S u r p l u s ..........................
100,000
R e s o u r c e s .....................2,7SO,ooo
O F F IC E R S
O. G. K oenig
President

G eo . A . L ubeley

Vice-President and Cashier

E m il S ieloff

Pau l J. L erch

Vice-President

Assistant Cashier

Natural Bridge Bank
440 0 N a tu ra l Bridge Road

St. Louis, Missouri
“ Use the Natural Bridge to Thrift”

34

M id-C ontinent B anker

May, 1929
Clark Whitmire has been elected as­
sistant cashier of the First National
Bank of Salem.
Charles S. Alves has been elected
vice-president of the Liberty National
Bank of Kansas City.

Trying to B e H elpful to the Banks
and Bankers o f the Southwest
Our Representatives Would Like to
M eet You at Your State Convention
R ufus C rosby K emper , President
Jam es S. N eely , Vice-Pres.

R oss H. R h e e m , Cashier
L u k e G uilfoyle , Special Representative

C IT Y B A N K OF K A N S A S C IT Y
KANSAS

C IT Y , M O .

Resources O ver Nine Million

Y o u N eed

The recent statement of condition of
the Northwestern Trust Company of
St. Louis shows total resources of more
than $10,500,000 and deposits of more
than $8,790,000. Capital stock is
$500,000 and surplus and undivided
profits are in excess of $1,200,000,
making it an honor roll bank. Officers
of the bank are: Chas. Maull, presi­
dent; Geo. F. Ellerbrook and J. F.
Obernier, vice-presidents; E. C. Hanpeter, vice-president and trust officer;
C. H. Lakebrink, secretary and treas­
urer; H. H. Luebbert, assistant secre­
tary and treasurer; A. H. Foote, as­
sistant trust officer; Lambert E. Walther, counsel. The Northwestern Trust
Company has been in business for 56
years.
The recent statement of condition of
the Clay County State Bank at Excel­
sior Springs shows total resources of
more than $1,930,000 and deposits of
more than $980,000. Capital is $10,000 and surplus and undivided profits
are more than $95,000, making it an
honor roll bank. Officers of the bank
a rc: John E. Wagner, president; T. E.
Crawford, vice-president; E. H. Cra­
vens, cashier; S. C. Sherwood, F. L.
Kimber, T. C. Hockensmith and Edna
Eastin, assistant cashiers.
The recent statement of condition of
the Water Tower Bank of St. Louis
shows total resources of more than
$2,000,000 deposits in excess of $1,700,000 and capital of $200,000.

O ur Experience
A t certain periods banks are in the market for
b o n d s ; at other times they are not. N ever, h o w ­
ever, can a bank afford not to be in close touch
with som e reliable investm ent banker w ho can
give it the service and attention so necessary to
the proper m anagem ent of its secondary reserve.

The recent combined statement
condition of the “ First” Banks
St. Joseph shows total resources
excess $11,000,000 and
deposits
more
than $9,700,000.
Capital
$700,000 and surplus over $758,000.

of
of
in
of
is

The recent statement of condition of
the Twelfth Street National Bank of
St. Louis shows total resources in ex­
cess of $2,600,000, deposits of over
$2,000,000 and capital of $300,000.
The recent statementof condition
of the Drovers National Bank of Kan­
sas City shows total resources in ex­
cess of $9,990,000, deposits of more
than $8,600,000 and capital of $600,000.

Investment bankers
1 0 0 9 - 15 B A L T I M O R E

AVENUE

Kansas City, Missouri
Omaha


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

Topeka

Wichita

The recent statement of condition of
the American National Bank of St.
Joseph shows total resources of more
than $8,850,000, deposits of more than

35

M id-C ontinent B anker

May, 1929
$8,100,000 and capital of $200,000.
Since the surplus of $350,000 is more
than the capital it is an honor roll
bank.

SERVICE

The recent statement of condition of
the Burnes National Bank of St. Jo­
seph shows total resources of more
than $5,100,000, deposits in excess of
$4,400,000 and capital of $200,000.

7 A Faithfully serving the needs of In-

Capital
Surplus
Undivided
Profits
$3,500,000

The recent statement of condition of
the New East Prairie Bank at East
Prairie shows total resources in ex­
cess of $185,900, deposits of more than
$155,000 and capital of $15,000. Since
the surplus is equal to the capital it
is an honor roll bank. Officers of the
bank are: U. A. Swingle, president;
S. P. Martin, vice-president; T. R.
Preston, cashier; J. H. Nelson and P.
P. Presson, assistant cashiers.

dustrial St. Louis for the past 65
I
'Ae years, qualifies this bank to extend
its depositors experienced financial
J
cooperation.
1

The Merchants Laclede National Bank
o f Saint Louis

The recent statement of condition
of the Peoples Bank of Clever shows
total resources in excess of $190,000,
deposits of more than $160,000 and
capital of $10,000. Since the surplus
of $10,000 is equal to the capital it is
an honor roll bank. J. E. French is
president and G. W. Estes is cashier.

mumu......... 111111111111111111111..... hmumilhmumimumimimi imummi

Laclede Trust Company
Jefferson and O liv e S treets

St. L o u is, M issou ri

Resources over $3,500,000.00

The recent statement of the Bank of
Avilla shows total resources of more
than $83,000, deposits in excess of $70,000 and capital of $10,000. This bank
has made an unusual record for a
small bank. In the last 10 years it
has paid its shareholders in cash divi­
dends 80 per cent of the capital stock,

Capital, Surplus and Profits over

$485,000.00
James A. D acey , President
J. C. R odenberg,

Vice-President
D r. D. A. T homson ,
Vice-President

W ill A ttend M issouri

H. W . K roeger,
Vice-Pres. and Treas.
George A. N ies ,
Secretary.

Bankers C onvention
\

Under Government Supervision United States Depository

...................................... ininn....ninnili....nnnn..... nnnnnnnnnni....nnni.........ninni...........

A Roll of Honor Bank
Capital $200,000.00
Surplus and Profits Over $378,000.00
Resources Over $5,000,000.00

Member o f Federal Reserve System
Associate Member
St. Louis Clearing House Association

JOHN W . M IN TO N
Assistant Cashier, National Stock Yards
National Bank


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

I3 A N K
ST. LOU IS, MO.

V IC T O R T. M O B E R LY , President
C. V. T O R R E N C E , Cashier
E. H. SP E LLM E Y E R , Assistant Cashier

36

M id-C ontinent B anker

May, 1929

1883
1928
Forty-Sixth Annual Statement of the
W e s t e r n M il l e r s M u t u a l
F i r e In s u r a n c e C o m p a n y
O F K A N S A S C I T Y , M IS S O U R I
A Participating Insurance Company— Dividends to its Policyholders

D e c e m b e r 31, 1928
ASSETS

Bonds—Government,Municipal (Market Value).................................................. $617,827.00
Cash in Banks ...........................................................................................
15|982.20
Due from Premiums and Agents’ Balances ........................................................ 23,171.45
Interest Accrued on Bonds ...................................................................................
5,759.45
Accrued Premiums ................................................................................................ 23,254.63
$685,994.73
L IA B IL IT IE S

Losses in Process Adjustment ..............................................................................$ 2,000.00
Reserve for Taxes and Expenses ........................................................................
3,000.00
Reserve for Reinsurance . , ..................................................................................... 119,076.04
Deposit Premiums and Membership Fees............................................................ 103*353.93
Reserve for Contingencies .....................................................................................
8^564.76
Permanent Fund ............................................................................... $100,000.00
Cash Surplus ..................................................................................... 350,000.00

$235,994.73

Surplus to Policyholders .......................................................................................$450,000.00
IN C O M E

$685,994.73

Premiums ................................................................................................................$433,113.15
Interest ................................................................................................................... 26,582.64
$459,695.79
D ISB U R SE M E N T S

Losses Paid ......................................................................
Savings and Dividends to Policyholders......................
Expenses, including Investment Expenses..................

$139,003.62
167,068.92
107,276.49

Income over Disbursements

$413,349.03
46,346.76

insurance in force ................................................................. $42,352,413.00

$459,695.79

LOSSES PAID SINCE ORGANIZATION .................................................. $2,305,650.43
Savings to Policyholders since organization .................................................... 3*430*537.17

The Success This Company Has Achieved Is Your Good Fortune
OFFIC ERS

L. S. MOHR, President ............................................. Kansas City, Mo.
A. J. EISENMAYER, Vice-President....................... Springfield, Mo.
E. D. LYSLE, Treasurer .................................... Leavenworth, Kansas
CHARLES H. RIDGW AY, Secretary................ Kansas City, Kansas
D IR E C T O R S

L. S. M O H R .................................... Kansas City, Mo.
R. R. C LA R K .................................... St. Joseph, Mo.
H. S. C O W G ILL.................................. Carthage, Mo.
A. J. EISENM AYER......................Springfield, Mo.
GEORGE G. SOHLBERG. . . Oklahoma City, Okla.


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

F. G. C R O W E L L........................... Kansas City, Mo.
E. D. L Y SL E ............................Leavenworth, Kansas
W ILLIAM K E LL It.................... Hutchinson, Kansas
R. C. JACKM AN.............................Lawrence, Kansas
CHARLES H. RIDGW AY, Secretary
...............................................Kansas City, Kansas

May, 1929

37

M id-C ontinent B anker

increased surplus 26 per cent and in­
creased the value of the stock $26 per
share.
The recent statement of condition of
the Citizens Bank of Benton City
shows total resources in excess of
$104,000, deposits of more than $80,000 and capital stock of $10,000.
Since the surplus of $17,000 exceeds
the capital it is an honor roll bank.
E. W. Rockwell is president and W. H.
Coil is cashier.
The recent statement of condition of
the Bank of Coffey at Coffey shows to­
tal resources of more than $170,000,
deposits in excess of $130,000 and cap­
ital of $30,000. Officers of the bank
are: J. B. Handy, president; D. C.
Courier, vice-president; W. T. Siple,
cashier; J. G. O ’Hare, assistant cash­
ier.
The Farmers State Bank of Easton
recently absorbed the deposits and
business of the Hemple Bank at Hempie. Officers of the Farmers State
_ are: Michael Wogan, president; H.
M. McLarney, vice-president; M. L.
Van Horne, cashier ; P. H. Carmichael,
assistant cashier.
The recent statement of condition
of the Bolckow State Bank at Bolckow shows total resources of more
than $250,000, deposits in excess of
$225,000 and capital of $10,000. Since
the surplus and profits are in excess
of the capital it is an honor roll bank.
E. W. Kent, 82, vice-president of
the Bolckow State Bank since 1909,
died April 16 at his home in that city.
The recent statement of condition of
the Laclede Trust Company of St.
Louis shows total resources of more
than $3,400,000, deposits in excess of
$2,200,000 and capital of $300,000.
Officers of the hank are: James A.
Dacey, president; J. C. Rodenberg and
Dr. D. A. Thomson, vice-presidents;
H. W. Kroeger, vice-president and
Treasurer; Geo. A. Nies, secretary.
The recent statement of condition of
the St. Louis National Bank shows to­
tal resources in excess of $3,100,000,
deposits of over $2,800,000 and cap­
ital of $200,000. Officers of the bank
are: Thos. N. Karraker, president; A.
J. Davis, vice-president; R. R. Karra­
ker, cashier; O. H. Bainbridge and W.
L. Kreh, assistant cashiers.
A fool with energy is always a nui­
sance and sometimes a menace.
Many a girl who thinks she’s a
dream looks like a nightmare.

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

SAINT LOUIS NATIONAL BANK
1 8 - c v t d O L IV E
Capital, Surplus and Profits over $ 247,000.00
Total Resources over

-

-

$3,000,000.00

Accounts o f Individuals, Manufacturers, Merchants,
Corporations and Banks, Solicited on Favorable Terms
THOS. N. KARRAKER, President
A. J. DAVIS, Vice-President
O. H. BAINBRIDGE, Ass’t Cashier
R. R. KARRAKER, Cashier
W. L. KREH, Ass’t Cashier

Do business with this strong company, which
has gained a country-wide reputation as a
“ National Institution of Service.”
The Federal Surety Company is managed by
experienced underwriters, and has from its
conception built for STRENGTH rather than
size.
Backed by Federal Service, these lines* are
written— Accident and Health, Automobile,
Burglary, Plate Glass, Public Liability and
Workmen’s Compensation Insurance, and Sure­
ty Bonds.

FEDERAL SURETY COMPANY
C A S U A L T Y IN S U R A N C E — S U R E T Y B O N D S
W. L. TAYLOR, Vice-President and General Manager
H O M E O F F IC E

D AVEN PO R T, IO W A

M id-C ontinent B anker

May, 1929

»

Officers
HENRY C. FLOW ER
Chairman o f Board
JOHN F. DOW NING
Chairman Executive Committee
LESTER W. H ALL
President
GEORGE T. TREM BLE
Vice-President
GEORGE G. MOORE
Vice-President

It is with pleasure that we announce the election o f Mr. William
S. Kennedy as Vice-President and Mr. A . A . Schuneman as A ssistant Cashier, both to be connected with the out-of-tow n banks
department.
Mr. Kennedy is a country banker o f wide experience. For the
last nine years he has been successively Deputy Bank Commissioner, Assistant Bank Commissioner and Bank Commissioner o f Kansas. During this time he has made an enviable record and had a
large part in the efficient administration o f that office.

d. a

. M cD o n a l d
Vice-President

ROBERT T. CAMPBELL
V ice-P resid ent
ALFRED D. RIDER
Vice-President
FREDERIC T. CHILDS
Vice-President
A LBERT R. STROTHER
Vice-President and Trust Officer
W IL L IA M S. KENNEDY
Vice-President

Mr. Schuneman has been the representative o f the Fidelity for
the past several years, keeping contact with our customers in Oklahoma, Arkansas and parts o f Texas. Fie also has had country
bank experience.
Both Mr. Kennedy and Mr. Schuneman will be active in keeping touch with our clients in District No. 10, giving their very best
personal attention to the problems and needs o f our banker friends
in this district.

A LBERT H. SM ITH
Cashier
DOUGLAS W ALLACE
Assistant Vice-President
e . j . M cC r e a r y , j r .
Assistant Vice-President

Rem em ber O ur N ight and D ay
Transit Departm ent

W IL L IA M PHARES
Assistant Vice-President
E. R. SW ENTZEL
Assistant Vice-President
D. M. CONNOR
Assistant Cashier
ROBERT R. LESTER
Assistant Cashier

Fidelity National Bank
wTrust Company
Capital and Surplus $ 4 ,0 0 0 ,0 0 0 .0 0

CHARLES H. GRIESA
Assistant Cashier
THOM AS C. CLARK
Assistant Cashier
MRS. K A TH R YN BERKLEY
Assistant Cashier
A. A. SCHUNEMAN
Assistant Cashier

FidelityNational Company
Capital and Surplus $ 1 ,7 5 0 ,0 0 0 .0 0

W. W. W ALTON
Auditor

“ UNDER THE OLD TOW N C L O C K ”

J. F. JAM ISON
Assistant Trust Officer

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

WM. E. ESTES
Assistant Trust Officer


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Federal Reserve Bank of St. Louis

39

M id-C ontinent B anker

May, 1929

Qhase R ational-Q hase Securities American Express M erger
LBERT H. WIGGIN, chairman of
the board of the Chase National
Bank, has made the following an­
nouncement :
At special meetings held recently by
the boards of directors of the Chase
National Bank of the City of New
York, of the Chase Securities Corpo­
ration and of the American Express
C o m p a n y , recommendations were
adopted which, if approved by the
shareholders, will result in consolidat­
ing the interests of the three organiza­
tions.
The plan in brief provides for (1)
an increase in the capital funds of
the Chase National Bank and the
Chase Securities Corporation; (2) a
reduction of the par value of the stock
of the Chase National Bank from $100
per share to $20 per share, and a cor­
responding increase in the no-par value
shares of the Chase Securities Corpo­
ration, and (3) an exchange of the
shares of the American Express Com­
pany for new shares of the two Chase
institutions. With the approval of the
board of directors of the American
Express Company, a committee repre­
senting shareholders of that company
has been formed to accept deposits of
American Express Company stock un­
der the plan. This committee consists

A

o f : Chairman, Seward Prosser, Chair­
man of Board, Bankers Trust Com­
pany; James S. Alexander, chairman of
board, National Bank of Commerce;
Albert H. Harris, chairman of finance
committee and vice-president of New
York Central Railroad; Charles Hay­
den, Hayden, Stone & Company; Har­
old I. Pratt, of Charles Pratt & Com­
pany, New York; Arthur Reynolds,
chairman of board, Continental Illi­
nois Bank and Trust Company, Chi­
cago; Charles S. Sargent, Ividder, Pea­
body & Company; Frederick P. Small,
president of American Express Com­
pany; Philip Stockton, president of
Old Colony Trust Company, Boston;
General Cornelius Vanderbilt.
The boards of directors of the Chase
National Bank and Chase Securities
Corporation have recommended that
shareholders take action at special
meetings to be called for May 16, on
a proposal to increase the capital stock
of the Chase National Bank and Chase
Securities Corporation from 610,000
shares to 800,000 shares, and to divide
the shares on the basis of five for one,
thus making a total of four million
shares of each institution outstanding
on the completion of the plan.
Of the additional new shares, 762,500 shares are to be offered at $110

per share to stockholders of Chase Na­
tional Bank and Chase Securities Cor­
poration of record as of May 24, 1929,
on the basis of five new shares for
each four old shares, and the balance
of the shares is to be used in connec­
tion with the plan of affiliation with
American Express Company.
The amount of $57,000,000 to be re­
ceived by the bank from the issuance
of the additional shares will be allo­
cated on the basis of $19,000,000 to
capital and $38,000,000 to surplus and
reserves, and the balance of funds paid
in by shareholders will be allocated to
Chase Securities Corporation.
Upon the basis of exchange of all of
the outstanding shares of the Amer­
ican Express Company stock and the
inclusion of American Express Com­
pany at its book values, less specific
reserves, the Chase Securities Corpo­
ration will have a book value upon con­
summation of the plan of approximate­
ly $85,500,000. The combined institu­
tions will have capital, surplus and re­
serves of over $283,000,000.
Correct
The teacher had been giving a lec­
ture to his class on modern inventions.
‘ ‘ Can any o f you boys, ’ ’ he said, 1‘ tell
me of anything of importance which
did not exist fifty years ago?”
“ Me,” exclaimed the brightest pu­
pil.
The advice of men who have made
fortunes is worth more to you than
that of those who tell fortunes.

W ill Attend Missouri Bankers C onvention

HAHOLD W . K R A M E R
Vice-President, National Stock Yards
National Bank


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Federal Reserve Bank of St. Louis

J. S. N E E L Y
Vice-President, City Bank of Kansas City

B EN ED W AR D S
President, National City Bank, St. Louis

40

M id-C ontinent B anker

Kansas C ity

May, 1929

W o r ld ’s Largest Stocker

—

and Feeder Cattle ¿Market
U NTIL a few years ago a public
terminal livestock market could
be properly described on the basis of
its physical properties— s p e c i fi e d
amount of land, buildings, number of
scales and etc. Only to a certain ex­
tent are these things of principal con­
sideration now, because service to both
the selling and buying side has become
the big factor. One does not go to a
vegetable garden to gather grain, nor
do buyers go to empty pens to get live­
stock. Sellers go where there are buy­
ers and the buyers go where there is
stock for sale. At Kansas City stockyards the two are brought together in
large numbers, and function in volume
in proportions as supply and demand
are maintained.
Lands, pens, scales, chutes and other
buildings continue to mark the loca­
tion of stockyards activities, but the
underlying characterization for a stockyard is its importance and relation
to the general livestock industry. Some
stockyards have one thing as a qual­
ifying claim to greatness and others
another, but there are only a few that
can combine all elements of livestock

I n v e s t m

e n t

B

barter and trade so that every known
class of demand exists for every class
of livestock. Killers want fat classes
for slaughter. Country buyers want
thin kinds for further development.
Where these two are combined there
is bound to exist a diversity in require­
ments that assures supply and stabil­
ity essentials that are of service to the
general industry.
The Kansas City Stockyards fills
this bill of particulars better than any
other terminal market. It is the
world’s largest stocker and feeder cat­
tle market, a great market for stock
and feeding pigs, sheep and lambs, the
second largest slaughtering point and
is one of the most important buying
points for the numerous small Eastern
packing establishments in the United
States. In total receipts, slaughter,
value, and volume of business Kansas
City ranks second largest in the United
States, while as to the extent of its
territory from which it draws supplies
and the territory to which it distrib­
utes supplies is surpassed by none.
Kansas City’s location, nearly the
center of the United States, north and

o n d s

south as well as east and west, served
by all the important railroad lines, or
having direct connection with them, is
one of the important factors in her
outstanding service. Another consid­
eration is that the livestock offered in
Kansas City is known to be of the best
quality and the healthiest available.
The bulk of her supplies come from
the areas of the United States where
flocks and herds have been bred for
quality and disease infection does not
enter through close housing and herd­
ing. Kansas City’s trade territory
has the feeds for fattening stock, and
the grass and range for producing
stock and feeding classes. More than
80 per cent of the beef bred cattle in
the United States are west of the Mis­
sissippi River, and 75 per cent of the
sheep in the same area. Texas, the
largest jiroducer of cattle and sheep
in the United States, is Kansas City’s
supply territory. Kansas and Okla­
homa, the greatest grazing area in
America, are within less than a day’s
run of Kansas City.
About twenty years ago a preven­
tive serum treatment for hog cholera
was discovered. In order to make a
thorough test of its effectiveness and
to develop its practicability the Kan­
sas City Stockyards invited the United
States Bureau of Animal Industry to

V a n d e v e n te r

N a tio n a l

Olive at Grand

f o r

B ank

St. Louis

B a n k s
embehN h
«^FEDERAL RESERVE^»
■N KSYSTEM ^d

GOVERNMENT
M U N IC IP A L
P U B L IC U T IL IT Y

Capital S tock — $ 2 5 0 ,0 0 0 .0 0

IN D U S T R IA L

Our Growth in deposits

R A IL R O A D

Deposits Nov. 27, 1928—#728,913.00
Deposits December 2 7 , 1 92 8 — $ 1 ,0 4 9 ,1 0 5

F O R EIG N
First Mortgage Real Estate Notes
Bond Department

Deposits Jan. 27, 1929— $1,108,588.00

Deposits Feb. 2 7 , 1 9 2 9 — $1,131,541.00
Mar. 27, 1929— $ 1 ,509,491,93

Deposits

LAFAYETTE-SOUTH SIDE BANK
T R U S T COMPANY
MEMBERFEDERAL ISa-. ¿si
BESESVESYSTEM

SAV

MEMBERST.LOUIS
OEA8MHIOUMASSM

BBOADWAY*“?LAFAYETTE

Resources Exceed $30,000,000.00
W rite for Our Monthly Offering List


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

OFFICERS
C. D.

L u k e n s , Chairman of the Board
W. C. J o h n s o n , President W. C. A n d erso n ,
L. A. N ie d e r lu c k ,
Vice-President
Vice-President
L. E. D orr, Vice-President
A. A. B r o c k , Cashier
H. B. G iv e n s , Auditor

The Institution With a Genuine Personal Service

41

M id-C ontinent B anker

May, 1929
make its tests here. They were given
unlimited services and facilities. As
a result of this, the handling of stock
and feeding pigs was made possible,
and Kansas City became the leading
stocker and feeder hog market in the
United States, supplied with vaccinat­
ing, spraying, drying and shipping fa­
cilities, said by the United States De­
partment of Agriculture to be the best
in America.
Official reports of the Missouri State
Veterinary Department show that the
losses in stock hogs bought and vacci­
nated in Kansas City are less than
those taken from any other market and
fully 50 per cent less than in hogs
bought in the country or at country
stockyards.
In addition to enlarging her out­
standing features in supply and de­
mand the Kansas City Stockyards fa ­
cilities have been maintained on the
basis of maximum efficiency, so that
no other stockyards surpass it in
the point of modern equipment. The
American Royal Livestock pavilion,
the home of the American Royal Live­
stock Show, held in November each
year, is the largest building in Amer­
ica devoted exclusively to furthering
the educational side of the livestock
industry. It is a building that typifies

the importance of the livestock indus­
try in the central west, west and south­
west that centers in Kansas City.

M issouri Bankers Train to
A . B. A . C onvention
Plans are being made for a special
train to carry Missouri bankers to
the American Bankers Association con­
vention at San Francisco September 30
to October 3.
The special train will leave St. Louis
the evening of September 24 and Kan­
sas City the morning of September 25.
The itinerary includes a stop of two
and a half or three hours at El Paso,
Texas, giving an opportunity to visit
Juarez; a stop of an hour at Tucson,
Arizona; a stop of thirteen hours in
Agua Caliente, Old Mexico, the match­
less foreign resort across the border
from San Diego, California; and a
daylight coast trip from Los Angeles
to San Francisco.
Arrival at San Francisco is planned
for the early evening of September 28,
which gives the opportunity of get­
ting settled prior to the arrival of the
convention crowds from other points
the following day.
Every one will have the privilege of
selecting his own route for the return
trip.

THE
N A T I O N A L C IT Y B A N K

Since
1876
T

H E men actually direct­

ing the affairs of the
Union Trust Company, of
East St. Louis, have invested
hundredsofm illionsof dollars.
A ll o f the bonds which are
offered for sale are first pur­
chased for the investment of
the Union Trust Com pany’ s
own funds.
T h e e x p e rie n ce o f many
years, supported by a constant
study of changing conditions
a ffectin g investm ents, is al­
ways at your disposal.
Consult O u r Representatives
or W r ite Us W ith o u t
Obligation

o f

St . Lo u i s

B. F. E dwards , President
E. A . S c h m id , Vice-President
W m . A . S tone , Vice-Pres. and Cash.
J. A . L e w is , Vice-President

AUGUST S C H L A F L Y
Chairman Executive Committee
PA U L A. S C H L A F L Y
Chairman Board of Directors
JOH N B. C L AR K
Vice-President and Bond Officer
TH O M A S F. POW ERS
E D W A R D F. A C K E R M A N
TAMES E. W E SSE L IN G
A. E. M cE W IN G

Member Federal Reserve System

L. E. D emper , Ass’t Cashier

V . Ja c q u e m in , Jr., Ass’t Cashier

The above officers will always be glad
to serve you.
O u r M r. B. F . Edwards and M r. Clarence T . Johnson zvill
attend the Missouri Bankers Association
Convention at Excelsior Springs


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Federal Reserve Bank of St. Louis

Union Trust
Company
of

E ast St . L ouis

42

M id-C ontinent B anker

May, 1929

Investment aid, analysis and
general counsel is one of the
many outstanding services ren­
dered without charge by this
Company to banks o f the South­
west.

IllRST IMPRESSIONS
"

are often Lasting and
they must he good

c)he entrance to the B a n k should
be a ttra c tiv e ,in v itin g , fr ie n d ly .
Only the especially gifted designer
can accom plish such a result. ~ ~
Consult us without cost or obligation

Address inquiries to
A d v isory Service Departm ent

P re sca tt.W riq h t. S n id e r Ca.
INVESTMENT BANKERS

^ D . Lacy Company

Established 1885

K A N S A S C ITY , M IS S O U R I

Designers and Constructors i Bank Buildings
1 2 0 6 SYNDICATE TR U ST BLDG.
S E N D FOR. O U R

ST . L O U IS , M O.

B O O K L E T "D IS T IN C T IV E

'•Branch Offices
TULSA

WICHITA

DALLAS

B A N K B U I L D I N G S ’'

In cBusiness

56 Years
Capital S t o c k ........... ..........................$ 500,000.00
S u rp lu s ..................... .......................... 1,000,000.00
203,218.97
Undivided Profits . . ..........................
O F F IC E R S
G. F. E llerbrock
President
Vice-President
J. F. O bernier
E. C. H anpeter
Vice-President
Vice-President
C. H . L ak e b r in k
E. C. H anpeter
Trust Officer
Secy.-Treas.
H . FT. L uebbert
A . H . F oote
Ass’t Trust Officer
A ss’t Sec’y
C harles M aull

Capital, Surplus and Profits over $315,000.00

Officers
L. H. TIEM ANN
President

G. A. BOYD, Jr.
Vice-President and Cashier

W. C. LIESER
Vice-President

O. H. HEM PELM AN
Assistant Cashier

Northwestern Trust
Company

GRANT STATE BANK
Gravois Avenue and Morganford Road
ST. LOUIS, MO.
Member Federal Reserve System


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

1 5 00 S T . L O U I S A V E N U E

St. Louis Missouri

WILL ATTEND MISSOURI BANKERS CONVENTION

FR A N K C. HU N T
Vice-President, First National Bank, St

G. A. BO Y D , JR.
Cashier, Grant State Bank, St. Louis

Louis

H. L. JA R B O E
President, Drovers National Bank, Kansas City

Senior

J. L. R EH M E
Vicei-President, Lafayette South
Bank and Trust Co., St. Louis

Side

FRED J . PARO
Vice-President, National Bank of Commerce in
St. Louis

F. B. BRADY

 Vice-President, Commerce Trust Co.,
Kansas City
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

GEORGE D. BREEN
A. G. Becker & Co., St. Louis

H A L Y. LEM ON
Vice-President, Commerce Trust Co., Kansas City

D. K. SN YDER
Drovers National Bank, Kansas City

44

May, 1929

M id-C ontinent B anker

T h e Officers and Diredors
o f the

Normandy State Bank
N O R M A N D Y , M IS S O U R I

announce the opening o f the bank

its

N E W BAN KIN G ROOMS

A t corner Natural Bridge and Florissant Road

The opening o f our new Banking Quarters places Facilities


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Federal Reserve Bank of St. Louis

o f an Exceptional Charader at the Disposal
o f O ur Friends and Depositors
The Accounts o f Firms, Individuals and Corporations Are Solicited
Safety Deposit Boxes for Rent

Capital and Surplus

- $32, 500.00

OFFICERS
W illiam M acDonald
V ictor J. Massa
A . W . Frazier Geo. D . A ble
W . C. Philbrook

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

President
Vice-President
Vice-President
. Cashier
Secretary

N orm andy State Bank Opens
in New Banking Home
HE teller’s cages in the main
banking room are perfectly pro­
tected against daylight hold-ups. The
tops of the cages and the sides ex­
posed to the lobby are protected by a
heavy bullet-proof screen mesh. In
the place of the usual steel grille,
which has usually been used in the
past for teller’s windows, bullet-proof
glass has been used with a specially de­
signed and patented combination am­
plifier and gunport. The glass which
is used for the teller’s windows ex­
tends from the top of the cornice down
to the deal plate, and deposits are
made in the usual manner through
solid bronze patented bullet-proof
deal trays and are a new device, afford­
ing complete protection against gun
fire. The cages are further protected
by a sharp-edged railing along the top
of the cages. All doors leading into the
cages are controlled by electric release.
All are lined with steel plates on the
inside and there is not a place in the
cages where a bullet will penetrate.
The walls of the main banking room
are. finished in Travatine marble and
all woodwork is walnut. Six bronze
light fixtures hanging from the ceiling
put a finishing touch to the room.
The bandit and bullet-proof equip­
ment was installed by The J. H. Wise
Company, Inc., bank builders of St.

T

Interior view of Normandy State Bank showing fixtures.

HE Normandy State Bank, Nor­
mandy, Missouri, held formal
opening of the new bank on April 6,
in its recently completed new bank­
ing rooms, after having installed the
most complete and up-to-date bandit
and bullet-proof fixtures and equip­
ment known.
The new building is a two-story
structure with a 60 foot frontage. Be­
sides the bank, two stores occupy the
lower floor of the building, and the
second story contains a number of of­
fices.
The entrance to the new building
leads directly into the main banking
room. Officer’s quarters are located to
the left of the entrance, and to the
back on the same side are the teller’s
cages which extend to the back of the
room and to the vault entrance. The
entire right-hand side of the room is
given over to the customer’s lobby and
the customer’s desk runs along the
wall. At the rear of this side of the
room is the door leading into the di­
rector’s room.
The entrance to the vault and cou­
pon booths is guarded by a heavy door
which can only be opened with a key.
The vault itself is guarded by a
heavy vault door with a triple lock.
Inside the main vault is still another
vault which is guarded by another

T


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Federal Reserve Bank of St. Louis

heavy door. Approximately 500 safe
deposit boxes range along the walls
of the main vault. In the basement
is a vault, similar to the main vault
on the first floor, which is used for
storage.

Interior view o f Normandy State Bank on opening day.
45

46

M id-C ontinent B anker

Louis. The building itself was built
by the MacDonald Construction Com­
pany of St. Louis, fixtures and marble
work by the St. Louis Bank Building
and Equipment Co.

ter, Carter Realty Company; W. C.
Philbrook, Carter Realty Company;
H. C. Bier, treasurer, Harris Lumber
Company; Charles A. Homer, vicepresident, Missouri Portland Cement
Company; W. Z. Linders, superintend­
ent, Lincoln Steel and Forge Com­
pany; Frank Guiton, retired; Otto O.
Fickessen, an attorney; Dr. G. H.
Klinkerfuss; W i l l i a m MacDonald,
president, MacDonald Construction
Company; V. J. Massa, real estate
dealer; A. W. Frazier, president, Frazier-Davis Construction Company; G.
A. Hartkoff, vice-president, Graner
Lumber Company.
The organizers of the Normandy

HE Normandy State Bank is new­
ly organized. Capital is $25,000,
and surplus is $7,500. Officers of the
bank are: William MacDonald, presi­
dent; Victor J. Massa and A. W.
Frazier, vice-presidents; Geo. D. Able,
cashier; W. C. Philbrook, secretary.
Directors of the bank are: Lon W.
Hailow, vice-president, Southern Sure­
ty Company; John T. Price, treasurer,
Southern Surety Company; Henry Car-

T

!

W IL L IA M S,

E

M cREE

& CO.

Incorporated

j
\

1

ANNOUNCE

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C O R P O R A T IO N C O N D U C T IN G A G E N E R A L

\

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IN V E S T M E N T

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F IN A N C IN G

I

510-511

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F O R M A T IO N

B A N K IN G
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OF

B U SIN E SS

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AND

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M ORTGAGES

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A M E R IC A N

TRU ST

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315 NORTH SEVENTH STREET

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THE

May, 1929

ST. LOUIS

j
MISSOURI

EUGENE F. WILLIAMS

Ê

--

HENRY McREE

Telephone: CHestnut 7944

Clay County State Bank
E XC E LSIO R SP R IN G S, M IS S O U R I
Extends all bankers a cordial invitation to make use of its fa­
cilities during the Missouri Bankers Convention, and
at all other times
CAPITAL SURPLUS U N D IV ID E D PROFITS

$10,000.00
$90,000.00
$8,000.00

John E. W agner, President
T. E. Crawford, Vice-President
E. H. Cravens , Cashier
S. C. S herwood, Asst. Cashier
T. C. H ockensmith , Asst. Cashier
F. L. K imber, Assistant Cashier
E dna E astin , Asst. Cashier


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

I

j

\
E

State Bank are to be commended for
their foresight in organizing a bank
for this community. Normandy is one
of the oldest and most beautiful outly­
ing sections of Greater St. Louis and is
developing at the present time faster
than any other district. The bank
building is situated at the junction
of Natural Bridge and Florissant
Roads. The Natural Bridge Road is
the most direct way to the new indus­
trial center of St. Louis and Florissant
Road is shortest road to new Lewis and
Clark Bridge which connects with A l­
ton.
The new municipal air port is just
beyond Normandy and many subdivi­
sions are being rapidly developed.

Bank H as Surplus and Profits
o f Ten

Tim es Capital

The Clay County State Bank of Ex­
celsior Springs, Missouri, is one of the
few banks in the country with the dis­
tinction of having surplus and profits
amounting to more than ten times the
capital stock. The bank is capitalized
at $10,000 and has surplus and profits
of more than $108,000.
The building owned and occupied by
the bank is also distinctive. It was
erected in 1907 and remodeled and en­
larged in 1921 when a ten ton Mosler
vault door and six hundred safety de­
posit boxes were also installed.
The main lobby has a high arched
ceiling. Cages, which extend down
both sides of the room, are finished in
marble complete, and though a great
deal of marble has been used in the
lobby, the effect has been softened
and made home-like by the use of vel­
vet taupe drapes and two mural paint­
ings and bronze statuary, one at either
end of the lobby.
The bank has enjoyed a steady
growth since it was organized in 1894,
and now has more than 3,000 custo­
mers with total resources of more than
$1,200,000 and deposits of more than
$1,000,000.
John E. Wagner, now president of
the bank, bought control two years
ago. Mr. Wagner was originally from
Richmond, Missouri, but for 30 years
was identified with banks in Kansas,
at one time being connected with the
banking department of that state.
T.
E. Crawford, vice-president, has
been with the bank for twenty-five
years, and E. H. Cravens, cashier, has
been with the bank for twenty-one
years. Other officers include S. C.
Sherwood, F. L. Kimber, T. C. Hockensmith and Edna Eastin, assistant cashîers.

47

M id-C ontinent B anker

May, 1929

K en n ed y and Schunem an A r e
Officers Fidelity National
The Fidelity National Bank and
Trust Company of Kansas City has
added to its official staff in the out-oftown bank’s division, William S. Ken-

100% PROTECTION
What it means
to the BANKER
N S U R A N C E will protect the cash deposits o f the bank, but it will not protect the
lives o f the officers, the employees, nor the customers. Daylight hold-ups are a
common occurrence, banks should take every precaution necessary to avoid them
and the bad moral effect resulting. Banks all over the country are adopting the
modern and sure means o f protection by installing “ Platt” Bullet-Proof and BanditP ro o f devices, which are not only protection for bank funds and human lives, but also
i n s t i l l confidence in
customers. These fix­
tures can be combined
with marble, wood, or
metal and in any de­
sired color or finish.
There is no need to
sacrifice dignity to se­
cure protection.

I

WILLIAM S. KENNEDY

nedy as vice-president and A. A.
Schuneman, assistant cashier.
Mr. Kennedy is a successful coun­
try banker, having spent the early
part of his business life with the First
National Bank of Kensington, Kansas,
working up from bookkeeper to cashier
and managing officer. He is the young­
est man to ever have held the office
of bank commissioner of Kansas and
possibly the youngest bank commis­
sioner in the United States. With the
expiration of his term as bank com­
missioner he closes nine years of effec­
tive work with the banks of Kansas in
that department. He entered the de­
partment as special deputy bank com­
missioner and because of special apti­
tude and ability was given the most
complicated cases, readily being ap­
pointed deputy bank commissioner.
When Roy Bone resigned as bank com­
missioner to accept the vice-presidency
of the Central National Bank of To­
peka, Governor Paulen appointed Mr.
Kennedy to fill his unexpired term.
Mr. Kennedy has had much to do with
the successful administration of the
bank commissioner’s office during the
period of stress.
Mr. Schuneman for a number of
years has been the representative of
the Fidelity National Bank of Kan­
sas City, in Oklahoma, Arkansas and
part of Texas. He has formed a large
acquaintance in that territory and has

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

HESE
illustrations are of
bandit-proof and bullet-proof
installations at the Wellston
Trust Company of St. Louis. You
will note the insert of the “ Platt”
Bullet-Proof Deal Tray, and a side
view of a “ Platt” Gunport and
speaking aperture. These are some
of the devices, together with BulletProof Glass and Jay-Tex Wire,
that offer 100% protection and permit the
transaction of the customary business. The
fixtures are designed to permit patrons to
deposit funds, withdraw them, and to con­
verse with the official without inconvenience
either to patron or banker.

T

At the same time, it is impossible for the
bandit to turn a deadly weapon on the
official. Any bullet fired in the direction
of the cage falls outside harmless. W e
are prepared to estimate on remodeling
fixtures now in use, we will sell individual
units, estimate on complete units, or will
supply the above devices to your own
contractor.
Our guarantee fully covers
all items. Once installed the fixtures need
no attention and the protection becomes
permanent; its- cost forgotten.
Estimates
and full information given without obliga­
tion to bankers, architects or others who
might be interested.

Write for FR E E Photographs

New and Remodeled Buildings
Constructed, Fully Equipped,
Ready for Service
UR complete organization offers a
service which includes designing,
equipment and construction.
Sub­
stantial dignified effects in keeping with
the modern institutions, growth and prog­
ress. Our complete work is indicative of
the careful study and planning which is
backed by years of experience, and the
service of an organization which believes
that strict adherence to, and the practicing
of, only the highest standards of business
principles, with integrity, responsibility,
service and quality above profits, is essen­
tial to success.

O

W e will send a complete set of actual
photographs free on request.

T H E J. H. W ISE C O M PA N Y, Inc.
B A N K B U IL D E R S
Syndicate Trust Building

St. Louis, Mo.

48

M id-C ontinent B anker

shown special aptitude in serving the
bankers with whom he has come in
contact.
Both Mr. Kennedy and Mr. Schuneman will spend all of their time in

A p p oin tm en ts

of

Guaranty

Trust A n n ou n ced
William C. Potter, president of the
Guaranty Trust Company of New
York, has announced the following ap­
pointments in the official staff of the
company: Stuart H. Patterson, vicepresident and comptroller; Robert L.
Garner, vice-president and treasurer;
G. Jarvis Geer, vice-president; and
Howard C. Davis, Thomas A. Moore,
Frank E. Dean, and Eugene T. Wag­
ner, assistant vice-presidents. Mr.
Patterson was formerly comptroller
of the company, Mr. Garner, treasurer,
Mr. Geer, assistant vice-president, Mr.
Dean, assistant treasurer, and Mr.
Wagner, assistant secretary.

James L . Rainey N o w
Caldwell &

Asst.

A. A. SCH U NEM AN ,
Cashier, Fidelity National Bank
& Trust Co., Kansas City, Mo.

contact with the banker friends of
the Fidelity, assisting them to obtain
the most benefit from their connection
with the bank.
The only romance in a mossback’s
life is hugging a pet belief.
The circumstances of the world are
so variable that an irrevocable resolu­
tion is almost a synonymous term for
a foolish one.— W. H. Seward.


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Federal Reserve Bank of St. Louis

May, 1929
leaving them to accept a position with
the Wichita, Kansas, branch office of
the Missouri State.

G u ilfoyle Is W ith C ity
Bank o f Kansas C ity
Luke Guilfoyle is special represen­
tative in Kansas for the City Bank of
Kansas City. He is 32 years old, sin-

W ith

C om p a n y

James L. Rainey, of St. Louis, su­
pervisor of agencies for the Missouri
State Life Insurance Company, has ac­
cepted a position as sales supervisor
with Caldwell & Company, southern in­
vestment bankers.
With the Missouri State Life, Mr.
Rainey has made a reputation second
to none in his particular line of in­
surance work. For the past two years
lie has been supervisor of agencies and
for the three years previous was su­
pervisor of the company’s accident
department, in which department he
originated the sales plan now widely
used not only by the Missouri State
Life Company but also incorporated
in the sales training methods of many
other large insurance companies. Be­
fore going with the Missouri State
Life, Mr. Rainey represented the
Travelers Life Insurance Company,

LUKE GEILEOYLE

gle and was born and reared in PottaAvatomie County, Kansas. During the
World War he served in the navy for
approximately two years, seeing active
service over seas.
On his return home he entered Kan­
sas State Agricultural College at Man­
hattan, graduating in 1922. While
there he took an active part in ath­
letics. Soon after finishing school he
was elected cashier of the Warn ego

A new type of vault entrance w ith interlockingvestibule. T h e rein forcin g rods of the concrete
wall extend into the m assive channel shaped vesti­
bule casting and are tied through its heavy ribs.
W h en the concrete is poured the vestibule becom es
a part of the wall itself.
Manufactured and installed by

Herring-Hall-Marvin Safe Co.
Hamilton, Ohio
S t . L ouis O ffice

308 N. F ourth S treet

S t . L ouis , M issouri

The Herring-Hall-M arvin Safe Co. for nearly a century has
built and will always continue to build the same undeviating
quality into its products.

May, 1929
State Bank at Wamego, Kansas, serv­
ing in that capacity until identifying
himself with the City Bank of Kansas
City.

Attractive B ook let Issued b y
South Side National
Frank K. Harris, publicity manager
of the South National Bank o f St.
Louis, has gotten out a very attractive
50 page booklet commemorating the
opening of the bank.
The booklet has a heavy green cover
and the title of it is “ The Dawn of a
New Day for Grand and Gravois.”
The booklet contains a history of the

FRANK K. HARRIS

different institutions which were merged
to form the South Side National and is
beautifully illustrated with pictures of
former bank buildings, the new home of
the South Side National, old time scenes
in south St. Louis and pictures of of­
ficers and directors of the new bank.
Mr. Harris is indeed to be congratu­
lated for the fine appearance and con­
tent of the booklet.

W a d e and Oltman F orm N ew
St. Louis B ond H o u s e
Festus J. Wade, Jr., and Fred J.
Oltman, have announced the formation
of Festus J. Wade, Jr., & Co., to
transact a general investment banking
business and offices have been opened
in the Paul Brown Building, St. Louis.
Mr. Wade resigned as vice-president
of the Mercantile Trust Company, St.
Louis, and Mr. Oltman resigned as as­
sistant to the president in order that
they might organize the new firm.
Mr. Wade, however, continues as a
director of the Mercantile Trust Com­
pany, of which his father, the late
Festus J. Wade, was founder and pres­
ident.
Mr. Oltman was for many years the
secretary of the late Festus J. Wade.
In killing time, see to it that you do
not murder a big opportunity.

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Federal Reserve Bank of St. Louis

M id-C ontinent B anker

49

50

M id-C ontinent B anker

C am p, T horne &
C H IC A G O

May, 1929

Co, in c .

N E W YORK

IN V E ST M E N T BONDS

M ain Office 29 South La Salle Street, Chicago

L A T I N A M E R IC A N A N D
AND

E U R O P E A N SE R V IC E S

B U Y I N G OFFICE

30 Pine Street, New York City

S A N F R A N C IS C O
S T . L O U IS
B A Y C IT Y , M IC H .


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Federal Reserve Bank of St. Louis

M IN N E A P O L IS

M IL W A U K E E
J A N E S V IL L E , W IS .

SEATTLE

DAVENPORT
W E S T F R A N K F O R T , ILL.

D E S M O IN E S
LaSALLE, ILL.

BOND and INVESTMENT SECTION

Too Many Banks Have Too High a Percentage of Local
Loans W hich Can’t Be Realized On in Times o f Stress

BANK to be successful must
be so managed that it has on
hand cash and sufficient deposits in
other banks to pay the normal demands
made upon it, but in addition it should
have a certain percentage of first class
investments that may be turned into
cash on short notice to pay any and
all unusual demands that may occur, or
in other words, be fortified with a
secondary reserve.
We are all familiar with the neces­
sity of maintaining a proper amount
of cash or primary reserves through
the administration of national and
state laws, but the building of second­
ary reserves as a banking policy is of
recent origin and is practically un­
known in many of the smaller commu­
nities. In fact one of my friends, who
is a good banker in Southern Illinois,
asked me only recently, “ What is all
this I have been reading about sec­
ondary reserves and just what does it
mean?”
Every banker knows that one of the
principal functions of banks is to loan
money to worthy borrowers. It is,
nevertheless, very unwise to confine
loans to one class, which are common­
ly called local loans and are very diffi­
cult to realize upon in times of stress.
Unfortunately there are many banks
that have too high a percentage of local
loans. In the larger cities where the

A


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

By PAUL S. ABT
Vice-President, Southern Illinois National
Bank, East St. Louis, 111.

mu... ilium....in11iniinmi.........................................

“ Fix the amount of the Sec­
ondary Reserve you want to
maintain, agree upon the kind
of securities you will buy,
then maintain it as a fixed
policy of the bank.”
miiiiiimiiiiiimiiiiiimiimiiiiiiiiiiiiiimiiiimiiiimiiiiiiiimmi
liquidity of banks is given more con­
sideration it has long been the custom
to place a fair percentage of invest­
ments in securities that could be dis­
posed of readily to replace cash re­
serves in case of necessity. They,
therefore, have the necessary require­
ments of a secondary reserve.
This brings us to the natural ques­
tion, “ What types of investments can
be considered as sufficiently secure,
liquid and marketable to answer the
requirements, and what regulations
should be followed in establishing the
proper amount of this reserve?”
It is rather difficult to lay down a
set of rules or say just what percent­
age of a bank's investments should be

set aside for a reserve of this kind, as
there are many local factors that make
conditions vary in different banks as
well as communities. Some have a
substantial commercial business with
a small percentage of time deposits or
vice versa, others have seasonal fluc­
tuations in deposits with a correspond­
ing rise and fall in the demand for
funds so that a fixed rule is impossi­
b le'of realization.
Some of the authorities that I have
studied fix the amount in a general
way from twenty to thirty per cent
above the ordinary reserves that are
necessary to transact its normal busi­
ness.
The auditor of this state in one of
the bulletins issued by his office ad­
vises at least twenty-five per cent
above the fifteen per cent cash re­
serve required in this state. It is cer­
tain that banks where most all o f
their loanable funds are absorbed at
home should give this matter earnest
attention.

Legitimate Investm ents
HE various forms of investments
that are usually termed legiti­
mate for secondary reserves according
to authorities are call loans, commer­
cial paper, bankers' acceptances, United

T

S m it h , M oore & Co.
For many years we have been successfully serving banks
and institutions in:
Building up liquid secondary reserves,, consisting of
sound bonds.
M aintenance o f bon d accounts at the peak o f efficiency.
T h e partners will be pleased to give the benefit of their
long experience in this field to your investment problems.
Ckas. W. Moore

Wm. H. Burg

509 O live Street

W. C. Morehead

R. B. Smith

N. R. Dutson

St. L ou is, M o .
51

52

M id-C ontinent B anker

States and municipal bonds, domestic
corporation and foreign bonds.
It is hardly necessary for me to say
that local loans and discounts usual in
the ordinary banks are not collectible
with any degree of certainty, and are
not included when a survey is made
for purposes of this kind.
When a selection is made of the
types of investments to be included,
we must also take into consideration
the bank’s actual condition as to its
annual earning power, as several of
the types mentioned ordinarily bear
interest at such low rates that it would
be unprofitable for the bank to carry
too much of low rate investments. Es-

pecially would this be true if earning
power is low and too high a percent­
age in interest is being paid on de­
posits. In that case it would be better
to hold a larger proportion of higher
rate investments which are perhaps
not so well secured, still retaining se­
curity, liquidity and marketability as
much as possible.
It is, therefore, my opinion provid­
ing a bank was sufficiently bulwarked
with substantial earnings, to give
United States government bonds the
first call in selecting investments that
would be most secure and salable and
subject to the least fluctuation in price.
Government bonds command a wide

11111111......11111111111111111111.....Illllllllllll...........I....... .

.................................. I....... I

Maturity Dates
Most banks avoid placing too great a part
of their investment in securities maturing at
any one time. Low interest rates or other
adverse market conditions at the time of ma­
turity may make reinvestment unfavorable.
W ith the maturity dates of an investment
list spread over a period of time, an unfavor­
able maturity will be offset by a more favor­
able one giving at least average market con­
ditions over a period of years.

A n analysis o f your bond list by our Invest­
ment Service Department entails no obliga­
tion.
It will be worthwhile insurance.

May, 1929
market at all times, prices are fairly
stable and in addition have the advan­
tage of being readily pledged with the
Federal Reserve bank, which is quite
a factor in obtaining temporary quick
relief when needed. It is my opinion
that all banks should carry some gov­
ernment bonds as a matter of policy,
if it is at all possible to do so.
Bankers’ acceptances have become
quite popular in recent years and an
acceptance of this kind issued by a
reputable bank is without doubt a very
good security to include in our second­
ary reserve. While the rate is com­
paratively low during periods of easy
money, the maturities are short and
they also have the privilege of redis­
count with the Federal Reserve bank,
and are in every way desirable for
bank investment.
All of the authorities that I have
been able to find on this subject have
given the preference in the selection
of investments to call loans. The fact
that the borrower must put up satis­
factory collateral of market stocks and
bonds, and is payable on demand has
all of the essentials of liquidity. It
is a form of investment that is not
generally used by the smaller banks,
and as New York City is the large
center for call loans, these loans are
usually made through a correspondent,
who acts as the agent in checking and
selecting collateral. The rates are or­
dinarily low and in the event of a tre­
mendous market liquidation, occasions
may arise where prompt action might
be necessary to avoid a loss.
Commercial paper is also considered
very good investment for a secondary
reserve. Prime commercial paper is­
sued by substantial corporations of
sterling worth and of unquestioned cred­
it position are considered a good in­
vestment.
Its principal advantage is its sala­
bility when in need and its reasonable
short maturity. The rates too, are
sometimes low, but it is difficult for
the rural bank to check credit state­
ments accurately. This type of paper
should always be purchased through
your correspondent, who is familiar
with proper checking methods from ex­
perience.

Tax Free Bonds

S TATE, county and municipal bonds
CEntral 3 00 0

S T .

L O U IS

^

711 St. Charles St.

S M em bers N e w Y o r k Stock E xch a n ge

."himinimInimmilium... .

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

have always enjoyed a consider­
able popularity among banks for in­
vestment purposes, and good bonds of
this type from a standpoint of safety
stand second only to United States gov­
ernment bonds. They have one decid­
ed virtue, and that is, that they are ex­
empt from federal income taxes. Many
banks escape federal income tax en-

tirely by carrying a sufficient amount
of such obligations among their assets.
In studying them from a standpoint
of secondary reserve great care must
be exercised as there are marked dif­
ferences existing in security and mar­
ketability.
Direct obligations of states where
the percentage of debt to assessed val­
uation is under five per cent are usual­
ly considered high grade bonds, and in
this category also are the direct obli­
gation bonds of our larger cities.
Bonds of this type do not enjoy the
collateral privilege with the Federal
Reserve banks, but reasonable loans
could be readily obtained from corre­
spondents for temporary relief.
Both of these types are excellent
material for a contemplated reserve.
Direct obligation bonds of counties
with a satisfactory population located
in developed sections of the country
with proper safeguards of low percent­
age of debt can also be considered
available as a component part of a
reserve.
Bonds of counties, cities, villages,
road, drainage and irrigation districts
that do not measure up to the stand­
ards enumerated must be very careful­
ly selected and in my opinion should
have a less than five per cent debt of
assessed valuation, 10,000 population
or more and be a direct obligation with
a reasonable marketability before they
would be included.
Domestic corporation bonds have
several distinct groups: public utility,
railroad bonds and industrial corpora­
tion bonds.
During the past several years there
has been a great increase in public
utility bonds issued owing to the many
combinations among electric light,
power, gas, street railway and water
corporations. Some of them are very
wrnll secured, and are commanding a
very broad market, so they might fair­
ly be classified as having the require­
ments necessary.
Railroad bonds have experienced
some severe reactions since the war
period. Issues of the major rail sys­
tems have made considerable recovery
of their financial position, and well
secured bonds of good railroad compa­
nies listed on the exchanges command
a wide market and can therefore be
considered suitable for our purpose.
Some industrial corporation issues
may also be included, provided they
survive the acid test of security, mar­
ketability and established position of
the issuing company. The rate of in­
terest obtainable on this type is per­
haps better than on any previously
mentioned and again great care must
be exercised in their selection.

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

53

M id-C ontinent B anker

M ay, 1929

Foreign Bonds
WELL chosen list o f foreign
bonds might also be included.
Since 1918 many foreign governments
have issued bonds sold in this country
repayable in American dollars, many
of them are well secured and answer
our requirements. The rates are high­
er than on American issues, which
probably accounts for their popularity.
Nevertheless a war flurry in Europe or
elsewhere would create quite a reaction
in price levels, so that it would be bet­
ter to use the shorter maturities.
It is not my intention to give you
the impression that it would be nec­

A

essary that all of these types of invest­
ments must be represented in the es­
tablishing of a secondary reserve.
Those that I have discussed are merely
a suggestion as to what a reserve
might contain. Smaller banks may
qualify with only two or three kinds,
while the banks in larger centers
would probably qualify with all of
them and perhaps others, which they
would accumulate in the ordinary
course of a diversification of their in­
vestment account.— From address be­
fore Mississippi Valley Conference on
commercial bank management, March,
1929.

Insurance Stocks
The record o f insurance companies is so impressive from
the standpoint o f earnings, equities, and dividends, that most
investors would include insurance stocks among their hold­
ings if they had access to all the facts.
Insurance companies draw their income from two
They make a profit on their underwriting operations,
also draw income from the investment o f large
money representing their capital, surplus, reserves,
earned premiums.

sources.
and they
sums of
and un­

They are, in effect, a form o f investment trust. Not only
do they observe the principle o f diversification, but because
o f the scope o f their investments they are able to attract the
best investment brains and experience to their service. This
advantage o f expert investment management is further forti­
fied by the fact that the investments o f insurance companies
are limited by law to securities o f the highest type.
These are but a few o f the reasons which account for the
fact that insurance companies, on the average,
double in value about every five years.
Send fo r descriptive booklet giving further
interesting details about insurance stocks.

A

P.WCHAPMAN& COLINC.
42 Cedar Street

115 West Adams Street

NEW YORK

CHICAGO

St. Louis Office
1103 BOATMEN’S BANK BLDG.

54

M id-C ontinent B anker

One on the Dominie
The minister and his bride were
preparing to eat a bite at a luncheon­
ette. They were busily engaged with
a bill of fare, when the waitress, who
was a much calcimined and peroxided
young miss, came up to take their
order. Suddenly the young minister
looked up from the bill of fare, smiled
sweetly at the waitress, and said:
“ How is the chicken today?”
“ Pretty good, kid,” she retorted,
“ how are you ?”
A star for every state, and a state
for every star.— Winthrop.

The Wonderland o f the
¿Missouri Ozarks
(Continued from page 24)

suit of the $75,000,000 state road bond
program, has stimulated interest in
business of all kinds in the territory
and the prospective vacationist may
feel fairly well assured that he will be
properly taken care of, if he makes
the Ozarks the scene of his summer
loaf either this coming summer or the
following year.
In fact, the people of the Ozarks
themselves, are awakening and endeav­

Investment Bonds Displace
Mortgage Loans
It is undoubtedly true that local money can no longer compete
to advantage with the large insurance companies in farm mort­
gage investments. Bankers in the smaller cities and rural dis­
tricts are therefore experiencing a steadily growing demand
for investment bonds.
In providing for his clients’ needs in these investments, the
banker not only realizes a profit on the sale of the bonds but also
indirectly benefits from retaining customers who might other­
wise go elsewhere to make their investments.
Caldwell & Company will be glad to assist you in rendering
adequate bond service to your clients, and to provide you with
up-to-the-minute information on securities and markets.
W rite today for our current list of
Offerings, attractively priced to banks.

Caldwell & Company
Southern Securities
117 North Fourth Street


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Federal Reserve Bank of St. Louis

St. Louis, Missouri

Offices in Principal Cities

M a y, 1929
oring to dress their land with some
of the habiliments of success found
in other favored vacation spots. Chief
among these is a generous welcome
and a friendly feeling toward the
stranger.
The assets and advantages of the
Ozarks have been summed up by Keith
McCanse, until recently State Fish and
Game Commissioner for Missouri, as
follow s:
HEN the Middle West was set­
tled the trappers and hunters
made for the Ozarks. It was their
paradise. Then the pioneer began to
cultivate the soil and he found the
country surrounding the Ozarks much
more responsive to his agricultural ef­
forts than the rough and rocky lands
of the Ozark country. Consequently,
the country all around the Ozarks be­
came more highly developed and more
thickly settled than the Ozarks. North
Missouri, Iowa and Illinois became fa­
mous for their corn production. Ten­
nessee, Arkansas, below the Ozarks,
Louisiana and Texas became great pro­
ducers of cotton. Oklahoma and Kan­
sas were covered with wheat fields.
Oil added to the wealth and population
of some of the states as did lead to
a part of the Ozarks.
“ During all this growth in prosper­
ity and population the Ozarks pro­
gressed slowly. The Ozarks did not
share with the surrounding country
in the building of cities or homes or
transportation facilities. Look at a
railroad map of the United States to­
day and you will find east of the
Rockies a great network of railroad
lines. There is one spot on the map
where the lines are further apart than
any other. It is perfectly clear that
the Ozarks did not share with the rest
of the country in railroad building.
“ A new day has come. Modern ma­
chinery and modern business methods
are giving people time for recreation
and travel. Modern thinking is turn­
ing people to do these things. Modern
transportation facilities are enabling
people to enter the Ozarks with ease.
Peoples from the countries surround­
ing the Ozarks that have grown
wealthy, that have money to spend,
can penetrate the innermost sections
of the Ozark country in a few hours
time.
“ The Ozarks offer to the people of
the Middle West:
“ 1st. Altitude with its consequent
advantages. All of the country of
wealth that surrounds the Ozarks is
lower in altitude.
‘ 12nd. Recreation in forests and along
beautiful streams of clear water; in­
termingled with many scenic attrac­
tions. ’ ’

W

M ay, 1929

W hat About Loans to
£Merchants ?
(Continued from page 22)

guide. It is necessary that both shall
be studied together and equally impor­
tant is it to have comparative state­
ments so as to measure the progress of
the borrower in this rapidly changing
day of merchandising methods. We need
to know about the merchandising ac­
count of the merchant borrower—the
obsolescence and the marketability.
There should be an analysis in our
files showing the accounts receivable,
age, turnover. How does the accounts
receivable compare with the normal
turnover for this class and character
of business?

55

M id-C ontinent B anker

der that the operations of the borrower
shall be insured on the best possible
basis for him. A 20 per cent balance
is usually required and this require­
ment finds its origin quite as much in
the borrower’s needs as in the banker’s
desire for a profitable balance.
In this age of close competition of
cost, the ability to take all discounts
may mean the success or failure of the
merchant. There has been called to
my attention recently the statement
of a wholesale grocer in the South
whose operating statement showed a
net loss of $20,000 and yet he was able,
because his cash ratios were right, to
take all discounts and his discounts,

coming under other source of income,
yielded a nice profit on the capital,
No merchant’s account should be car­
ried where adequate and proportionate
balances are not maintained.
A fool reads a book and understands
nothing in it. A witling reads it, he
fancies he is perfectly master of it
all without exception. A man of dis­
cernment sometimes does not compre­
hend it entirely, he distinguishes what
is clear from what is obscure, whilst
the beaux esprits will have those pas­
sages dark which are not, and affect
not to understand what is really in­
telligible.— LaBruy ere.

P ERHAPS there is no better gauge
o f a merchant’ s capacity than his
cost record system. Lower production
costs on both goods and service is the
major problem of business today.
The intelligent merchant recognizes
this fact and will adjust his affairs
through cost control to continue those
lines only which offer a profit in the
handling, and so attune and adjust
his operations that he may have left,
a comfortable margin of profit. The
merchant like the banker who fails to
apply adequate cost control to his op­
erations is definitely in the discard'
today.
I have in mind an automobile mer­
chant who is a “ hound” for cost ac­
counting and knows the cost of every
phase of his every operation. Knows
what ends of his business are unprofit­
able and seeks to stop these leaks.
Knows the standard item cost for
every phase of his operations and has
been able to measure his own costs by
the average standard, and tune his or­
ganization to beat these standards as
he has done in many of the items in
his schedule. Is it any wonder then
that this automobile merchant prospers
in a community when his neighbors
around about him who give less thought
to their costs, failed and that he has
come to a very large place in the in­
dustry in the South?
Not only must a banker study state­
ment ratios, the earnings record and
the trends of business in the line of
the applicant borrower before him, but
he needs to study more now than ever
what the cash position of the borrower
is, and needs to require now more than
ever before that there shall be a defi­
nite ratio of bank balances maintained
against the borrower’s line. Not on­
ly is this necessary in order that a
profitable relationship shall be enjoyed
by the bank but it is necessary in or
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Capacity to M anage
. . . an item which does
not show under Assets.
HERE is a tangible factor which decides the in­
trinsic worth of securities, never itemized in bal­
ance sheets. This factor is the capacity of a company’s
management.

T

A business must have a product or service which can be
sold profitably, and sufficient working capital. Given
these, management is then the factor which decides its
measure of success.
For thirty years this organization has concerned itself
chiefly with the capacity of management when consider­
ing the financing of corporations. To companies with
capable management capital has been provided for ex­
tending their activities and for increasing their earning
power. The soundness and potential possibilities of se­
curities issued to provide such capital depend directly
upon the ability of a company’s management.

Suggested for current investment are four bonds
of sound, growing and well-managed companies.
Descriptions may be had by requesting Invest­
ment List ioo

George H. B urr & Co.
5 0 6 O liv e S tr e e t, S t. L ou is
OFFICES IN PRINCIPAL INVESTMENT CENTERS

;i111111111111111111111111111111111il111111111111111111111111111111111111111111mm1111111111mmmm... . mimmi........unimmillili.....nui.:

56

5
M ay, 1929

M id-C ontinent B anker

C o n t in e n t a l I llin o is
C o m pany


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Federal Reserve Bank of St. Louis

C H IC A G O

231 South LaSalle Street

U nderwriter, wholesaler and
retailer of investment securities
Offices:
N ew York
Minneapolis
Cleveland
Kansas City

Milwaukee
St. Louis
Des Moines

Houston

Wichita

Atlanta

Om aha

Capital * 20 million dollars

The Present
StatUS

of the

‘ ‘ The s a l e s of
manufactured gas
during 1928 are es­
timated at 490,000,000,000 cubic feet.”

Gas Industry
By

HOWARD F. WEEKS

HE record of stability and growth
; established by the gas industry
of the United States during the past
few years stamps it as a progressive
and wide-awake industry and places
it in a most favorable position today.
Coupled with the increasing use of
gas in the American home has come
the large-scale use of gas fuel in hotels,
restaurants, factories, and manufac­
turing plants, with the result that the
loss of the gas lighting business has
been compensated for hundreds of
times over. Even when the gas compa­
nies were flushed with the success of
supplying the nation’s lighting agent,
they were in a less secure position than
they are today when they are tapping
the gigantic fuel-supply industry. To
be specific, it can be said that the gas
industry really started on its grand
march to present-day supremacy in the
fuel field when the electric light came
into popular use. The industry had its
inception and a slow, steady growth
because there was a market for the
lighting properties of gas, but the real­
ly Gargantuan growth came with the
full realization of the potentialities
of gas as fuel for industries and homes.
A few statistics are sufficient to
prove the point at issue. The records
of the American Gas Association show
that the use of manufactured and nat­
ural gas for industrial and commercial
heating is doubling at the rate of once
in every seven years. The Associa­
tion’s statistical department estimates
that in 1928 more than 147 billion
cubic feet of manufactured gas were
used by factories and plants for largescale heating operations. This is more
than double the amount used in 1921,
when 71 billion cubic feet were util­
ized in this manner. The sales figures
of the natural gas branch of the in­
dustry give practically the same per­
centage of growth.

T

U sing Gas in the H o m e
HE industrial consumption of gas
is but one side of our picture.
The domestic load, for many years the
backbone of the industry, is also worthy

T


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

H OW ARD F. W E E K S
Editor, American Gas Association Monthly

of attention. The domestic use of gas
was developed to its present size al­
most exclusively by the gas range, with
the result that today gas cooking is
well-established. The widespread and
almost universal use of the gas range
has done much for the gas industry,
and the development within the last
two or three years of new domestic
appliances has given the gas companies
further opportunity to increase the
per capita use of gas. Among these
new appliances which have added
steady business are the gas refrigera­
tor, the gas incinerator, the gas garage
heater, and the gas water heater. This
latter appliance has been sold for a
great many years, but it has been only
recently that it attained anywhere near
popular usage.
Imagination is challenged at the
present day use of gas for house heat­
ing. Natural gas territories have
taken gas house heating more or less
for granted, but it was a different
story in manufactured gas districts un­
til a relatively few years ago. Today
hundreds of thousands of home owners
use manufactured gas to heat their
homes, and millions more are seriously
considering it.
Some statistical information from a
conservative section of the country
throws light upon this subject. In
New England the sales of gas for house
heating increased more than 87 per
cent in 1928, according to the statis­
tical department of the American Gas
Association. This figure of 87 per
cent is based on returns representing

some 68 per cent of the sales in New
England States.

T h e Industry in General

B UT what of the industry in gen­
eral ? The following table of
preliminary estimates, prepared and
given out by the industries themselves,
indicates the percentage increase or
decrease in fuel sales for 1928 as com­
pared with 1927, with manufactured
gas well in the lead:
Coke ..................... 2.
Bituminous coal . .—4.8
Anthracite coal . .—5.
Crude Petroleum .. 1.
Manufactured gas
3.8

per
per
per
per
per

cent.
cent.
cent.
cent.
cent.

The sales of manufactured gas dur­
ing 1928 are estimated at 490,000,000,000 cubic feet.
Since the above tabulation refers
only to the manufactured gas branch
of the industry, let us look for a min­
ute at the natural gas branch. Again
we quote the statistical department of
the American Gas Association, which
says that estimates indicate the per­
centage of increase in natural gas
sales in 1928 to be a substantial one,
being in the neighborhood of ten per
cent.

S o m e Financial A sp ects
HE effects of the expansion in
varied fields of sales activity are
reflected in the financial results at­
tained by the industry.
In 1927 the operating revenues of
the industry increased by $13,950,000
57

T

58

M ay, 1929

M id-C ontinent B anker

or 2.8 per cent. Operating expenses,
however, increased by only 1.5 per cent
reflecting to a considerable extent the
results of intensive study and con­
tinued research devoted to the prob­
lem of lowering production cost. In
1923 operating expenses other than
taxes absorbed 67.6 per cent of op­
erating revenues, whereas in 1927 this
proportion had dropped to little more
than 65 per cent. The ratio of op­
erating expenses to operating revenues,
in per cent for the years under consid­
eration was as follows:

1923 1924192519261927
Before taxes 67.6 67.3 66.5 65.9 65.1
Including taxes 76.2 76.0 75.2 75.0 74.6
It should be noted that in computing
these ratios, depreciation or retirement
expense has been included in operating
expenses.
Taxes paid by manufactured gas
companies have shown a continued and
persistent increase during the period
1923 to 1927 inclusive. In 1923 taxes
constituted 8.7 per cent of the gross
operating revenues of the industry,

whereas by 1927 this ratio had risen
to 9.5 per cent.
In spite of this increasing propor­
tion of gross operating revenues ab­
sorbed by taxes, income from opera­
tions registered an increase of $6,279,000 or 5 per cent, during 1927. The
manner in which the gross operating
revenues of industry have been appor­
tioned between operating expenses,
taxes and operating income during the
past five years is shown graphically
in Chart 1.
In 1927 fixed charges increased $1,533,000 or 3 per cent. The gross in­
come available for such fixed charges,
however, increased by $4,146,000. The
number of times fixed charges were
earned, as well as the proportion of
gross operating revenues represented
by fixed charges are indicated by the
following tabulation:
1923 19241925 19261927
Number of
times fixed
charges were
earned ..........3.0 3.0 3.1 3.0 3.1
Percentage of
operating reve­
nues rep­
resented
by fixed
charges ........9.7 9.8 10.310.2 10.2
In this brief article a studious at-

formerly Vice-President,
Mercantile Trust Co., St. Louis

Bond
Quotation Record

AND

MAY ISSUE

FESTUS J. WADE, JR.

FRED J. OLTMAN
formerly Assistant to President,
Mercantile Trust Co., St. Louis
announce the formation of

FESTUS J. WADE, JR. & CO.
INCORPORATED

This booklet gives the following information
on bonds listed on the New Y ork Stock E x ­
change, the New Y ork Curb, as well as on
active unlisted issue.
1—

1925 and 1926 P R IC E R A N G E

2—

IN T E R E S T D A T E S — M A T U R IT Y

3—

C A L L P R IC E — IF A N Y

4—

IN C O M E A T C U R R E N T P R IC E S

5—

Y IE L D — IF H E L D T O M A T U R IT Y

to transact a general
Copy Mailed on Request

Investment Banking Business

Knight, Dysart & Gamble

PAUL BROWN BUILDING
ST. LOUIS

April 2, 1929


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

Investment Securities
401 O L IV E ST.

ST. L O U IS

M e m be rs N e w Y o r k , C h ic a g o , S t . L o u is S t o c k E x c h a n g e s

59

M id-C ontinent B anker

May, 1929
tempt has been made not to refer to
the future of the gas industry, with
the idea in mind that the future is
spelled in terms of the present. Is it
necessary to talk of the “ future” ?
The “ present” of the manufactured
and natural gas industry is good, and
with a good present there is absolute­
ly nothing that can be expected in
the future except a still further rapid
growth in the utilization of this clean,
labor-saving, non-smoke giving fuel
which offers so much to industry and
home.

Plaza National

Bank

Sound Bonds
and

Selected
Investment Stocks

W ill

H a v e $ 3 0 0 , 0 0 0 Capital
Application has been made for a
charter for a new national bank for
St. Louis, to be known as the Plaza
National Bank, and it is expected that
the new institution will open for busi­
ness in the Missouri Pacific Building
about July 15. Julius W. Reinholdt,
Jr., investment banker, has been in
charge of the organization plans for
more than six months.
The 3,000 shares of stock at $125
per share have been subscribed, ac­
cording to Mr. Reinholdt, and no other
subscriptions will be solicited at pres­
ent, it was announced.
The organizers, besides Mr. Rein­
holdt are : Lyman T. Hay, president
of the Hotel Jefferson; John J. Little,
an officer of the brokerage firm of
Love, Bryan & Co.; Nelson Cunliff,
construction engineer, and Sidney
Overall, secretary-treasurer of F. D.
Hirschberg & Co., insurance agency.
According to the organization plan
adopted, the bank will have seven di­
rectors, in addition to the five organ­
izers, and the executive officers will be
elected at the first directors’ meeting.
The new financial institution will be in
no way connected with present St.
Louis banks, Mr. Reinholdt said.

W a g en fu eh r H ea d s St. Louis
Credit M e n
Albert Wagenfuehr, vice-president
of the Boatmen’s National Bank, St.
Louis, has been elected president of
the St. Louis Association of Credit
Men.

H

14 S. La Salle St.
C H IC A G O

WHOLESALE

&

o a g la n d ,A llu m
INCOVk. W• HATED

Co.

34 Pine St.
N E W YORK

D I S T R I B U T O R S

<fc R E T A I L

Background
A

R E A L Estate Loan reputation extending back to 1848 gives the Cody Trust
Company an enviable background of honor­
able connections and unusually successful
accomplishment.
This experience, these
connections and this proven integrity as­
sure you profitable service.

Total Resources M o r e Than

$1,000,000,000
The recent statement of the Con­
tinental Illinois Bank and Trust Com­
pany of Chicago shows total resources
in excess of $1,100,000,000, deposits of
over $868,000,000 and invested capital
of $164,000,000.

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

CO D Y

TRUST

105 South La Salle Street

COM PANY

Corner o f M onroe

Telephone, Randolph 6600
FirSl Mortgage Real Estate Bonds

Chicago

60

M ay, 1929

M id-C ontinent B anker

BONDS —
for

bank income
A ssets

at

Pr e s e n t a i

M P A R E these charts. The one at the
COright
is based upon the statement of a

Time
Loans

national bank located in a thriving indus­
trial and commercial city of the Middle
West. So ultra-conservative has been the
policy of this institution in the past that all
generally accepted legal and primary reserve
ratios have been exceeded by large margins.
There has, in consequence, been a con­
siderable amount of unused earning power.

20 %

D em an d

U.S.
Government
Obligations
\

Loans

W o

DSLunieipaL

f u.s. V

Marketable
Bonds

The Problem
of your bank
¿Industrial)

T im e

Government'
Obligations

Loans

\

20 %

\

To what extent should your bank hold bonds?
. . . What type of bonds should you favor —
public utility, industrial, corporate real estate,
railroad, foreign, or municipal? . . . A t e long
term or short term issues logical for you? . . .
Shouldyield be emphasized instead of liquidity,
or the contrary ? . . . What percentage should
go to make up a revolving fund?

Demand
Loans

A s se t s R e d i s t r i b u t e d
A S U G G E S T E D redistribution of this
bank’s assets is indicated in the above
chart. U . S. Government Bond holdings are
reduced from 30% to 15 % . Cash and Due
from Banks, has been reduced from 24 °/o to
19 % . This makes funds available for a welldesigned and highly conservative Secondary
Reserve Bond Account. Assuming that the
average yield from the bonds selected is only
5% , the added earnings in this case amount
to well over $ 3 5 ,0 0 0 annually. And still
the position o f the bank remains highly
conservative.

T h e r e is no yardstick — no for­
mula— for all banks alike. It all depends
upon your individual needs. These can be
determined by capable analysis. Once your
requirements have been determined by this
means, every question can be answered with
confidence. Our experience in designing bond
reserve accounts for banks is at your disposal.
Details will gladly be supplied on request.

Every Thursday Evening

Broadcast from C o a s t tO C o a s t
through W -E -A -F and 36 stations associated
w ith the National Broadcasting Company

Hear the O ld Counsellor
On the Halsey-Stuart Program
9 p.

M.

Eastern Standard Time . 8

p. m

.

Central Standard Tim e • 7 p.

m

.

Mountain Standard Time

6 p. M. Pacific Standard Tim e

D aylight Saving Time, one hour later

H A L S E Y , S T U A R T A CO.
INCO R P O RAT E D

C H IC A G O 2 0 1 South L a Salle Street

D E T R O I T 6 0 1 G rirw old Street

C L E V E L A N D 9 2 5 Euclid A v en u e

M I L W A U K E E 4 2 5 East W a t e r Street


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Federal Reserve Bank of St. Louis

N E W Y O R K 3 5 W a l l Street

P H I L A D E L P H I A h i South Fifteenth Street

ST . L O U IS 3 1 9 N o rth Fourth Street

P I T T S B U R G H 3 0 7 Fifth A v en u e

BO STON 8 5 Devonshire Street

M I N N E A P O L I S 6 0 8 Second A v en u e, South

61

M id-C ontinent B anker

May, 1929

Balancing an Investment Program
Any Bank Can Create a Secondary Reserve and Will Have the
Satisfaction of Seeing It
of Its

Depositors,

Its
By

Redound

to

Stockholders,

the Lasting Benefit

and the

Community

M A X B, N A H M

Vice-President, Bowling Green Trust Company, Bowling Green, Kentucky
FUNDAMENTAL change is tak­
ing place in the United States.
Good roads and cheap transportation
by low-priced automobiles and trucks
are moving the business of small towns
to larger towns, attracted by better fa­
cilities for trading, amusements, hotels
and conveniences of life.
The era of the country store is pass­
ing away. Country churches are with­
out pastors, country communities have
no doctors and must send to large
towns for physicians at twelve dollars
a visit.
In Kentucky in the last 30 years,
only six cities have increased as much
as 10,000 inhabitants; many small
towns and villages have almost passed
away. To stay on the map a town
must locate factories, colleges, or be-

A

JOHN

l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l > > l > l l l l l l > l i l i l l l i l i l |iaBa|l l l i |lll|l |l |'

“ While the yield from call
loans is larger than that of
other means of investing bank
surplus, it is an indulgence
just now that wise bankers
will refrain from, rather than
to make a bad s i t u a t i o n
worse.”
r 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 |l|i |1111 m m

come a center of a network of roads,
and draw from other towns. Other
Southern and Northern states are hav­
ing the same experience.
So the bank problem in small towns
is to exist at all. They have problems
of their own. Chain stores are in­

R.

TH O M PSO N

S E C U R IT Y

C O R P O R A T IO N

208 SOUTH LA SALLE STREET

CH ICAGO , ILLINOIS

W

vading the territory of the larger
towns, and mercantile paper, once their
main stay, is becoming uncertain.
Farmers of late years are not so pros­
perous and their paper is slow, some­
times frozen.
These banks are consolidating, yet
Glasgow, Kentucky, with 4,000 inhab­
itants has four banks, as many as
Memphis, Tennessee, with 200,000 in­
habitants.
They are economizing on salaries,
and limiting the number employed.
Frankly, for the most part they have
no secondary reserve, but depend up­
on their correspondents for such serv­
ice, unless they are members o f the
Federal Reserve System, in which case
they can rediscount their farm and
business paper. Few ever had an ac-

a n t e d

!

We have a client, a nationally known investment house
originating and distributing a large volume of investment
stocks and bonds yearly, that is desirous of establishing
contact with direct representatives who have had some
experience in selling and who are well regarded in each
of the following Illinois cities, on a very profitable basis:

Underwriters
Peoria
Springfield
Jacksonville
Bloomington
Alton
Chicago
Rockford
Quincy

and

Distributors
of

Industrial
Municipal

Railroad

Public Utility


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Federal Reserve Bank of St. Louis

Real Estate

BONDS

Danville
Decatur
Dixon
Freeport
Galesburg
Rock Island
Moline
Centraba

In replying, state age and experience and give satis­
factory references. Arrangements for an interview will
be made with those whose letters indicate the class of
representatives wanted.

Address answers to the undersigned and we
shall be glad to forward them to our client.

Rudolph Guenther-Russell Law, Inc.
R .

K IN G

K A U F F M A N ,

C H A R L E S

H .

B E N T ,

Vice-P resident
V ice-P resid en t

Financial Advertising in all its Branches
120 South L a S alle S treet, C hicago

62

M id-C ontinent B anker

ceptance in their portfolio. Three or
four years ago they bought commer­
cial paper from their correspondents,
but since many old well known cor­
porations have financed themselves
otherwise, many banks have dropped
this form of investment.
They bought government bonds dur­
ing the war, but now their bond account,
whether corporate or government,
shows a loss. A few indulged in call
loans tempted into the game by large
returns, but when lately the city hanks
declined to form the necessary $100,000 pools that ceased.
There are some marked exceptions
to these practices, some country bank­
ers deal in all phases of finance and
their institutions are universities of
banking where men are trained in

every department with complete tech­
nique and vision of the complex whole,
whereas in cities they are trained in
cages as distinct part of a diverse sys­
tem.

C ou n try Bank's Problem

I F we could teach our country bank­
ers that their problems are not iden­
tical with, but akin to the well thought
out programs of their city cousins how
much better off they would be. I f
when their local deposits fall off and
their loans can not be paid, only onefourth of them were in balanced in­
vestments, though at lower rates, an in­
surance against disaster, our record of
bank failures would tell a different
story. That is our lesson to be learned.
Banks buy investments for three

What Kinds of Bonds
Should Banks Buy?
Should a bank buy:
U . S. G o vern m en t securities ?

P u blic U tility b o n d s ?

M u n ic ip a l bonds ?

In vestm en t T ru st d e b en tu r es?

Special assessm ent bonds ?

In du strial b o n d s ?

R a ilro a d b o n d s ?

F oreign b o n d s ?

E q u ip m en t T ru st certifica tes?

R e a l E sta te b o n d s ?

T h e s e and o th e r
sim ilar questions are dis­
cussed in a brochure pre­
pared by our econom ist,
D r. Paul M . Atkins, en­
titled: Bank Secondary
Reserves a n d Investments.

W e shall be glad tosend any
bank a copy upon request.

Ames, Emerich 8cCo.
105 South La Salle Street, Chicago
509 Olive Street, St. Louis
First Wisconsin Nat’l Bank Bldg., Milwaukee
New York


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Federal Reserve Bank of St. Louis

Philadelphia

San Francisco

Los Angeles

M a y, 1929
main reasons— secondary reserve; per­
manent investment; and resale to
clients.
We shall concern ourselves only with
the secondary reserve, the distinguish­
ing characteristics of which should be
safety, liquidity and convenience with
ability to take care of normal and ab­
normal demands. Excessive rates paid
on deposits are temptations to unde­
sirable investments to even up and
high-powered salesmen of high yield­
ing bonds are a snare. Diversification
in types of investments, geographic lo­
cation and time of maturity are nec­
essary to thoughtful accomplishment
of safety.
A balanced investment program for
a country bank includes five distinct
types. Three are subject to discount
at the Federal Reserve System, commercial paper, acceptances, and United
States bonds and certificates. Two
are not subject to discount at the Fed­
eral Reserve, corporate and municipal
bonds and call loans, which however
are payable on demand. As a graphic
illustiation, we shall handle the unit
of $100,000 secondary reserve, and our
opinions are given with misgivings as
to correctness, and subject to your bet­
ter judgment.
In the first three classes we would
invest $75,000. They are subject to
rediscount at the Federal Reserve Sys­
tem, jfiacing $35,000 in commercial pa­
per, $25,000 in acceptances, and $15,000 in United States bonds and cer­
tificates.
In the other two classes we would
invest $25,000. They are not eligible
to the Federal Reserve, placing $15,000 in corporate bonds, and perhaps
$10,000 in call loans in normal times.

D iscount Eligibility
TT is well to run the red thread of
•I eligibility to discount at the Fed­
eral Reserve System through our re­
serve as persistently as possible, for
that will always be our haven of ref­
uge or that of our correspondents.
Since 1918 eligible paper held by na­
tional banks steadily declined; they
held June 30, 1923, 30.2 per cent; on
June 30, 1928, only 21.6 per cent.
Too little stress has been laid on this
important requisite.
The average loss of banks and trust
companies in 4 years, 1922-1925 on
commercial paper was $5.70 on $10,000.
The average loss of national banks
for 5 years, 1921-1925, on their loans
and discounts was $68 on $10,000, or
about 12 times that of loss on com­
mercial paper.
The average loss of national banks
for 5 years, 1921-1925 on bonds and

May, 1929
securities was $131 on $10,000 or about
23 times that of the loss on commer­
cial paper.
In the matter of yield for 25 years,
1901-1925, commercial paper has net­
ted a return of 4.88 per cent, while
high grade bonds have netted 4.65 per
cent.
In 1928, commercial paper netted
4.93 per cent, call loans 5.85 per cent.
Therefore, I am forced to the con­
clusion that commercial paper espe­
cially with a present yield of 5% per
cent should be given the preference in
our diversified investment program.
O bank ever became insolvent
from its holdings in commercial
paper bought in the open market. It
is self liquidating, and there is a clock­
like precision in the return of the
funds when due.
It is sold under an agreed option
period during which the bank may in­
vestigate thoroughly and if not sat­
isfied, return the paper without cost.
The purchasing bank has a selection
of names from which it may diversify
industries and geographic distribution.
There are no local or personal influ­
ences encountered by direct contact
with the borrower to affect an unbiased
judgment, and there are no renewals.
The return is fixed and definite, and
is a discount in advance and not an
interest paid at maturity; there is no
charge for buying or collecting and the
face value does not fluctuate. The vol­
ume of commercial paper has declined
from 820 millions in January, 1925 to
427 millions in October, 1928, a de­
cline of 45 per cent, caused by corpo­
rations financing themselves through
stocks and bonds, but there is still a
great volume of commercial paper of
high type.
Bank acceptances at the high return
at present of 5^4 to 5^2 per cent are
most attractive for a balanced invest­
ment and are practically loss-proof
and gilt-edged.
An acceptance results from the fact
that the seller of goods wants to get
the money before the buyer is ready
to pay. So he draws a draft on the
buyer’s bank on which the bank puts
its stamp “ accepted” which is a bank
guaranty of payment.
The policy of the Federal Reserve
of purchasing acceptances at preferen­
tial rates and acting as angel for ac­
ceptance houses when they can not
borrow funds from banks at low rates
has developed almost magically an
enormous acceptance market in this
country. The larger Federal Reserve
banks purchase from bill dealers un­
der a 15 day repurchase agreement any
satisfactorily endorsed bills, at about
the' buying rate at the time. There is

N


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Federal Reserve Bank of St. Louis

>
63

M id-C ontinent B anker

an open market for purchase or sale,
and the liquidity and security are prac­
tically complete. No more satisfac­
tory means of bank investment could
be invented though the return is some­
what lower than that of commercial
paper; however, the market is broaden­
ing all the time and at times the Fed­
eral Reserve banks have held as much
as half of the bills outstanding in the
country.

Treasury Certificates
HE third eligible bank investment
is the Treasury Certificate of In­
debtedness. The last issue was at the
rate of 4% per cent, and they are tax
exempt. There is an open market for
purchase or sale with a broad demand.
The Federal Reserve banks are large

T

purchasers. The face value is subject
to market fluctuations, as are United
States bonds.
We now come to the two securities
ineligible to discount at the Federal
Reserve.
Bonds are a fundamental element in
our business life. They provide long
time funds for our great corporations,
and furnish means for long term in­
vestment for public institutions and
individuals and savings banks.
High grade bonds furnish a sound
investment for the surplus of commer­
cial banks, but only for such funds as
can be held indefinitely and which the
bank will not likely be called on to
loan to customers at the peak of the
next borrowing season.
Bonds purchased should be well sea-

U N D E R W R I T E R S a n d D IS T R IB U T O R S o f C O R P O R A T IO N

S E C U R IT IE S

A Sensible Policy
After years of close analysis of factors effecting
the price of bonds, call money and commercial
paper, many successful bankers have estab­
lished a “ Middle of the Road” policy.
Wise bankers are not overlooking the im­
portance of diversification in spite of the unusual
rates obtainable in the call money market.
We shall be pleased to outline a secondary
reserve policy for your institution.
Many
bankers have approved of this policy as being
sound.

M a n a g er o f T ra d in g S ervice D e p a r t m e n t

T H O M A S F. FOR D

BROKAW

AND

COMPANY

105 South La Salle Street, Chicago

M id-C ontinent B anker

64
sorted issues of high grade institutions
with preference for stability, soundness
and liquidity rather than for rate or
profit. Once acquired, they should be
frequently analyzed, for there are no
time-proof bonds. The earnings should
be watched, and if anything changes
your opinion of them for the worse,
sell them.
Bonds fluctuate in price from day
to day, and when money becomes tight
they decline in price, at the very time
a bank may need to realize on them.
Forty bonds in 6 years, 1921-1925 av­
eraged in price from a low of 68.80
to 81.99, and a high of 76.31 to 85.44.
A commission both for purchase and
sale is paid by the bank to the broker.
However, the net yield of high grade
bonds fluctuates little, therefore, we

SHORT

TERM

can well afford to invest $15,000 of
our $100,000 in bonds diversifying
them in about half railroad bonds, and
dividing the balance between public
utilities and industrials.

Call M o n e y
BALANCED program of bank in­
vestment must vary with condi­
tions. In normal times one would not
hesitate to include call loans for $10,000 of our $100,000 unit, though they
are ineligible to discount at the Fed­
eral Reserve. On the other hand, with
a 25 per cent margin of excess value in
collateral and being payable on de­
mand loss is practically excluded.
However, the call money situation
in the United States is so top-heavy
and militates so severely against a low

A

INVESTMENTS

FOR

BANKS

X

HE OBLIGATIONS o f

G M A C possess a degree of invest­
ment strength nationally recognized
by a clientele of over seven thousand
banks.

G M A C paper is obtain­

able in convenient maturities and
denominations at current
discount rates.
Ot r

offerin g list will b e mailed regularly u p on req u est

G
A

M

eneral

cceptance
O F F I C E S

E x e c u tiv e O ffice

IN

C

otors

o r p o r a t io n

P R I N C I P A L

C I T I E S

- Broadway at 57 th Street '

M ay, 1929
rate for business loans that one is
tempted if not to exclude call loans
at this time from a list of bank in­
vestments, at least to indulge in them
but sparingly, if at all.
I am not speaking as a Federal Re­
serve director but from personal con­
clusions as a banker.
Most economists have voiced their
apprehension of the danger of a situa­
tion in which about half of the brok­
ers’ loans, the stupendous sum of twobillions seven hundred millions are
known as ‘ ‘ loans from others. ’ ’
A loss of confidence because o f any
disaster or threatened catastrophe or a
lowering of the rate for call money
might bring about the calling of 1‘ loans,
from others.” The consequent strain
upon the banks called on to fill this
void would be very great. This is a
pyramid standing upon its apex and
most unstable.
While the yield from call loans is
larger than that of other means of in­
vesting bank surplus, it is an indul­
gence just now that wise bankers will
refrain from, rather than to make a
bad situation worse.
To cure this situation is a problem to
which we should all exert our best
energies.
I am wondering if the final remedy
will not be outside of the present

I

INSURANCE STOCK
TRUST SHARES

T h is security provides a diver­
sified investm ent in 16 leading
insurance companies which have
a record of able and profitable
m anagement.
Insurance com­
panies reflect the grow th of
Am erican business.
One insurance com pany m ay
prosper more than another but
spreading the investment over
a group of strong companies,
safeguards principal and stead­
ies income.
A s A m e r i c a prospers and
grow s there is assurance that
the value of this investment will
rise, that dividends w ill increase.
W e recommend purchase of
these shares.
Price— at the market.

H e w K ork C ity
ELLIOTT R. COUDEN SYNDICATE
Landreth Building, St. Louis, Mo.
Gentlemen:
Please furnish details regarding IN ­
SURANCE STOCK TRUST SHARES.

CAPITAL,


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Federal Reserve Bank of St. Louis

SURPLUS
OVER

AND

UNDIVIDED

PROFITS

Name

......................................................

$65,000,000
Address

................................................

May, 1929

65

M id - C o n t i n e n t B a n k e r

power of the Federal Reserve System.
May it not be as Louis T. McFadden
suggested in October, 1928, that the
remedy may be in placing the super­
vision of future granting of brokers’
loans under the Federal Reserve?
Perhaps as Paul Warburg suggested
in his report to the International Ac­
ceptance Bank, “ our failure to estab­
lish on our Stock Exchange a system
of term settlement dealings aggravates
the difficulties of our problem.” Per­
haps only a bad experience will cause
our people to awake to the remedy.
Every bank must necessarily vary
its program of investment according
to its own local conditions, crops, in­
dustries, and local customs. Liquidity
for one neighborhood might not an­
swer for another, but that must be the
one great object; unsound securities
do not add to liquidity but destroy it.
Any bank can create a secondary re­
serve and will have the satisfaction of
seeing it redound to the lasting bene­
fit of its depositors, its stockholders,
its community, and the banking busi­
ness as a whole.
Then Santa Claus will come down
his chimney at the end of the year
bringing dividends and happiness, in­
stead of blizzards of frozen loans, dis­
aster and wrecked careers.

C o n tin e n t B a n k e r from C. S. E. Hol­
land, president of the bank.

H ou sto n National Issues
Brochure on N e w H o m e
The Houston National Bank, Hous­
ton, Texas, has issued an exceptional­
ly attractive 36 page brochure giving
a short history of the bank and the
part that bank lias played in the de­
velopment of Houston and southern
Texas. The booklet is beautifully il­
lustrated with views of the bank’s
new home and is done in colors.
The Houston National Bank has one
of the most beautiful banking homes
in the Southwest. The interior is fin­
ished in Roman travertine and black
Belgium marble. The main lobby of
the bank is 90 by 108 feet.
The brochure is a gift to the Mid-

Washing the Cat
A mother, discovering her small
daughter washing the kitten with soap
and water, exclaimed:
“ Oh, Betty darling, I don’t think
the mother pussy would like her kitty
washed like that.”
“ But, mother, I really can’t lick it.”
Progress begins with the minority.
It is completed by persuading the ma­
jority, by showing the reason and the
advantage of the step forward, and
that is accomplished by appealing to
the intelligence of the majority.—
Curtis.

Sound Investments
F o r Banks Taking A dvantage o f P resen t B o n d Prices
Maturity

Approximate
Yield

1 /1 /6 9

4 .8 0 %

6 /1 /5 6

4 .8 7 %

1 1 /1 /7 7

4 .8 8 %

1 /1 /5 7

5 .3 1 %

5 /1 /5 7

5 .5 0 %

1 /1 /5 3

5 .7 3 %

1 /1 /7 8

5 .7 2 %

1 /1 /5 9

5 .7 5 %

3 /1 /6 8

5 .9 2 %

6 /1 /4 8

5 .9 8 %

7 /1 /4 3

6 .0 0 %

3 /1 /7 6

6 .0 2 %

A m e r ic a n C o m m u n ity P o w e r C o m p a n y 7 / 1 / 5 3

6 .1 0 %

D e la w a r e P o w e r ÖC L ig h t C o m p a n y

41/25

F irst M o r tg a g e

C u m b e r la n d C o u n t y P o w e r 8CL ig h t C o .

4VA

First M o r tg a g e

P e n n C e n tra l L ig h t 8¿ P o w e r C o .
F irst M o r tg a g e 4 l/2s

N o r th w e s te r n P u b lic S e rv ic e C o m p a n y
F irst M o r tg a g e 5s

N o r th Penn G as C om p an y
First M o r tg a g e & L ien

O U R Trading Department
takes no position in the
market, neither buying nor
selling for our own account.
W e are therefore able to ren­
der our customers an im­
partial service in the execu­
tion of their orders.

5VA

W a s h i n g t o n G a s 8C E lectric C o .
First M o r tg a g e

5Vài

N a tio n a l E lectric P o w e r C o m p a n y
S ecu red D eb en tu re 5s

D e la w a re E lectric P o w e r C o m p a n y
D eb en tu re

5VA

Io w a P u b lic S e rv ice C o m p a n y
D eb en tu re 5s

M o r r is o n H o t e l ( C h ic a g o )
F irst M o r tg a g e L ea seh old

5Vi*

M ille r a n d H a r t , In c .
D eb en tu re 6s

The confidence of banks
and dealers throughout the
country in entrusting to us
large buying and selling or­
ders testifies to the soundness
of this policy.

P e n n sy lv a n ia G a s 8C E lectric C o r p .
D eb en tu re 6s
S ecu red D eb en tu re

5VA

M ic h ig a n F u el a n d L ig h t C o m p a n y
N o r t h A m e r ic a n G a s 8C E lectric C o .

6 .1 3 %

1 /1 /4 4

6 .1 5 %

2 /1 /4 4

6 .2 0 %

6 /1 /5 5

6 .2 5 %

1 /1 /3 8

6 .5 0 %

D eb en tu re 6s, I V I V

G e r la c h -B a r k lo w C o m p a n y

W ire Your Orders at
Our Expense

6 /1 /5 0

F irst M o r tg a g e 6s

D eb en tu re 6s

K e y s to n e T ele p h o n e C o m p a n y ( P h ila . )
First L ien & R efu n d in g

5Vi*

B ax ter L a u n d rie s, In c .
F irst M t g e . & C o l. T ru st

6V2*

These bonds are offered with a Bank Discount,
Subject to Prior Sale and Change in Price.

Further details will be gladly furnished on request

837 Boatmen’s Bank Building
MEMBERS
St. Louis Stock Exchange
New York Curb Market
Associate
Chestnut 7990


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Federal Reserve Bank of St. Louis

St. Louis

A.C.ALLYNandc o m p a n y
INCORPORATED

I n v e s tm e n t S ecurities
418 O L IV E ST R E E T , ST. L O U IS
C H IC A G O

NEW YORK

D E T R O IT

M IL W A U K E E

BOSTON
M IN N E A P O L IS

P H IL A D E L P H IA
SA N F R A N C IS C O

66

May, 1929

M id -C o n t i n e n t B a n k e r

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r c e o fò x

Stifel,Nicolaus & Go.
INCORPORATED

Third Floor^Boatmen’s Bank Building«Broadway and Olive^St. Louis


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I

N

V

E

S

T

M

E

N

T

S

E

C

U

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I

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I

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S

W hat the South Contributes
Few People Have an Adequate Conception of the Part the
South Plays in Supplying the World With Raw Materials

O NE does not need to possess the
_ acute mind of a Sherlock Holmes
to interpret the story that may he read
daily on the docks of any primary port
when a large ocean-going steamer is
loading miscellaneous cargo. T h i s
spectator, if he be ordinarily well in­
formed, will readily perceive that a
percentage of the freight in view rep­
resents a trans-shipment of goods that
have originated in other countries and
which are merely changing carriers en
route to ultimate destination abroad.
He will rapidly differentiate this
freight from the merchandise and pro­
ducts which he knows to be of purely
local origin, and will classify the re­
mainder as representing the diversi­
fied agricultural and industrial activity
of the nation at large. Into whatever
category he may mentally allocate the
infinite variety of merchandise before
him, he will readily comprehend that
the operation then engaging his atten­
tion represents in its final analysis,
nothing more than the shipment of
goods from a country “ that has” to
others “ that have not” or want. It
is by means of the interchange of com­
modities, so strikingly exemplified by
the cargo before him, that civilization,
in its largest sense, is supplied with its
multifarious requirements, and in nor­
mal times is the routine manner by
which humanity is not only kept well
clothed, well housed, and well fed, but
is furnished with those inestimable
conveniences which tend to its comfort,
security, and happiness. It is upon
the interchange of these commodities
being properly balanced to the world’s
needs that commerce is enabled to
flourish, and the nations to prosper.

Some nations contribute generously to
the world’s requirements, while others
can do so but sparingly, and it is in
proportion to its contribution that a
nation acquires wealth, and with
wealth, domination.
Without disparaging the contribu­
tion of the other great nations to the
sum total of the world’s requirements,

Ship ready for cargo at Cotton Ware­
house, New Orleans.

there is no doubt that in recent years
the North American continent has
placed more at the disposal of man­
kind than any other section of the
globe, and with its growth of popula­
tion, and its energetic agricultural and
industrial communities, it will doubt­
less continue to do so in the future,
in an increasing ratio. Canada and
our own northern and western states
supply Europe with a substantial pro­
portion of its foodstuffs, and the mid­
dle west and the eastern states supply
it with manufactured articles which
are in almost equally keen request.
Upon these particular exports it is not
our purpose to dwell, but rather to
point out the contribution of the
southern states as their share of the

Public cotton warehouse, New Orleans.


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Federal Reserve Bank of St. Louis

good things furnished for the use of
mankind. The northern part of our
continent helps to feed the world, but
the South to a very large extent clothes
it. Cotton and wool are the two allimportant fibres which civilization
must have for garment purposes, and
the largest source o f the world’s sup­
ply of cotton lies in our own southern
states. Cotton is, o f course, produced
in other countries than America, but
mankind at present depends upon our
Southland for its main supply, the con­
tribution from other countries being
in reality supplementary thereto. I f
the South produced cotton alone and
nothing else, the world would still be
its debtor. Few people realize what
this fibre means to civilization and
how necessary the cotton fields of
Dixie are to the comfort and well-be­
ing of the world at large.
The South also keeps the Occident
supplied with rice. Formerly Europe
depended upon Asia for this nutri­
tious cereal and simply took the sur­
plus which the Orient could spare. The
Rice Belts of Louisiana, Texas and Ar­
kansas, however, now send their car­
goes of this wholesome article of diet
to practically all parts of the world
lying west of Suez. From Scandi­
navia, in the North, to Uruguay, in the
South, one will find the people eating
rice grown in sub-tropical American
gulf states.
Of an entirely different character is
sulphur. This, until the early part of
the present century, was almost exclu­
sively obtained from Sicily, but the
inexhaustible supplies of this valuable
mineral so highly necessary to the
chemical trade and to industries gen-

Public grain elevator, New Orleans.

67

M id -C o n t i n e n t B a n k e r

erally, which are now to be found in
Louisiana and Texas, enable these two
states alone not only to supply the
world with its entire requirements, but
they have more than an abundance of
the mineral in reserve, which can be
utilized by succeeding generations in
the years that are to come.
There is little need to comment on
the production of oil for, although the
quantity exported is indeed large, the
South is only an important factor and
not the dominating producer thereof.
On the other hand, Europe and South
America look to the southeastern states
for their naval stores—turpentine and
rosin— and it is a wondrous spectacle

to see acres of ground covered with
barrels of rosin awaiting shipment of
the world’s paint, soap and varnish
manufacturers.
Somewhat akin to naval stores is
carbon black— a pigment produced by
the imperfect combustion of natural
gas. Whilst its production is not
strictly limited to the South—the state
of Louisiana supplies many foreign
countries with this excellent colour,
which has practically superseded the
gritty lampblack of former days, and
which, at best, was mainly chimney
soot. Even Germany, which is parexcellence the dye and color-making
country of the world, uses Louisiana

Is the Bank
the Place for
Bond Business?
A greater number of bank officials are
coming to realize each year that it is
a logical and important function of the
bank to provide improved facilities
for handling the bond business of the
community. In line with this trend,
we have developed a sound plan to as­
sist banks in securing or increasing
this desirable business.
This plan works out to be attractive
because:
1. It will not decrease cash on hand.
2. It will increase resources.
3. It is basically and economically
sound.
A comprehensive outline of this plan
will be sent to any bank official upon
request.

R

obert

S.S

trau ss

&

Co.

Investment Bonds— First Mortgages
105 West Monroe St.
C H IC A G O


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Federal Reserve Bank of St. Louis

Offices in O ther Cities

150 Broadway
N E W YO R K

May, 1929
carbon black, and huge packing cases
of this product can usually be seen on
the docks at New Orleans when a ship
is loading for Hamburg.
There is one
other commodity
amongst many others which we can
touch upon, which the world greatly
needs, and which is supplied abun­
dantly by the South, viz.: hardwood.
Europe is amply provided with soft
woods, particularly deal and the other
cheaper qualities of fir, but for its
oak, long-leaf pine, ash, and cypress,
it draws its supply from the ports of
the gulf states. It is also shipped to
South America, where our varieties
of hardwood are scarce. The finest
quality of oak staves used by France,
Portugal, and Spain, wherewith to
manufacture the barrels to hold their
precious vintages, are produced large­
ly in the South, and even Australia
has commenced to draw upon this sec­
tion for barrel stave w’ood.
Great as may be the volume of ex­
portable goods and food products orig­
inating in our northern and western
states, which America is able to place
at the service of humanity, the South
on its part contributes a more than
generous quota of highly valuable spe­
cialties. These keep her shipmasters
active, and her ports busy, and the vol­
ume of these exports comprise a high­
ly important percentage of the sum to­
tal of American commerce.—Hibernia
Bank and Trust Company, “ Foreign
News and Comments.”

A Loan P olicy For
Country Wanks
(Continued from page 14)

be considered but also those of former
years. It is not sufficient that the as­
sets exceed liabilities but it must be
evident that the quick assets warrant
the loan and that the operations of the
applicant show progress. An appli­
cant whose operating statement shows
deficits is not a good risk no matter
if his assets are substantially more
than his debts because sooner or later,
if he is given a credit, the banker must
secure himself to collect and probably
be forced into a long time loan or com­
pelled to put the borrower out of busi­
ness. In all applications for unse­
cured loans, those of a capital nature
must be carefully scanned and the ag­
gregate amount of such capital loans
kept to a minimum.
It seems to be considered by some
bankers that if there are two names on
the paper it is enough to class a loan
as secured. The endorsement of a sec­
ond name means nothing if he is not

May, 1929
called on for payment when the maker
fails to pay. The worth of the en­
dorser should be as carefully consid­
ered as that of the maker and no loan
should be placed in the note case and
kept there because the hanker is afraid
that the endorser would be offended if
the paper was refused. When notes
are discounted from local merchants,
the bank places itself in the position
of a collection agency. It should only
enter upon such an arrangement upon
the express condition that when the
discounted notes mature and are un­
paid that they may be charged to the
account of the discounter. In this day
when cost of operation is a vital mat­
ter and the cost of booking a loan
runs into dollars, it is just and fair
that the expense of renewals or re­
financing be borne by the benefited
party, the discounter. The amount
that any discounter is liable upon as
endorser should be measured by the
statutory line limits to the same ex­
tent as his direct line. There have
been far too many banks which have
become involved because they have per­
mitted themselves to become loaded up
with trade notes both from within and
without the territory of the bank. In
the case of loans to corporations, there
should be an endorsement or guaranty
by directors and stockholders.

69

M id - C o n t i n e n t B a n k e r

$500 alone. Any application for a
greater amount should be acted upon
by the loan or finance committee up
to 5 per cent of capital and surplus
and if the amount sought is in excess
of such figure it should be passed upon
by the entire board of directors. Their
duty does not end with the approval
of the loans after they are made. It
extends throughout the entire life.

or one of the causes of the failure.
The direct lines of officers and direc­
tors above a limited amount should be
required to be adequately secured not
only because it is proper but because
it gives added weight to the demand
of the bank that its other borrowers
secure their lines.
In establishing a loan policy it is
necessary that the directors partici­
pate actively in the extension of cred­
its, directly or indirectly. It is their
duty and one which can not be dele­
gated to the executive officer. In fact,
the authority of the active president
or cashier in a country bank should
not permit him to make loans beyond

T the monthly meeting of the
board, all loans made during the
month should be considered and ap­
proved and each director should sat­
isfy himself as to the quality of the
loans. There should also be regular

A

theBonds

Q uick Collateral

T ™ loans secured by quick and
j slow collateral constitute the bal­
ance of the note case or about 20 per
cent of deposits. By quick collateral
is meant loans secured by collaterals
having a known and active market and
may be stocks, bonds and in some
cases, possibly chattel mortgages and
bills of sale. The test is the practical
and quick value of the security. The
slow collateral such as chattel mort­
gages on livestock, equipment, stocks
of goods and the like are generally
capital in their nature and a forced
liquidation of the security is tanta­
mount to the elimination of the bor­
rower from the community and such
credits should be carefully weighed be­
fore being extended and the aggregate
kept low.
The loan policy to officers and di­
rectors and to their enterprises is one
requiring discretion. By reason of
their favored position to make use of
the bank for the personal ends it is
quite in keeping that the aggregate
loans to them and to their enterprises
should not exceed the amount of in­
vested capital. This may seem to im­
pose an unnecessary restriction but the
records of too many suspended banks
show that excessive loans to directors
and their interests have been the cause

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

2s

primarily an investment in­
First Mortgage Real Estate
Bonds, as a class, have a Investigate this feature in stitution having within its
organization men thorough­
record for safety, plus
experienced in construc­
yield, possessed by no other
Selecting Firit Mortgage ly
tion principles and prac­
form of investment. The
tices,
rentals and building
character of the security ac­
Real Estate Bonds
operation and real estate
counts for this. But, in se­
values. For every applica­
lecting the individual issue
tion for loan accepted, ten are rejected.
in which to invest your funds, it is wise to
This conservative policy permits the guar­
first consider the house behind the issue.
anteeing of the payment of both principal
The amount of first mortgage loans is based
and interest when due.
on a certain percentage of the value of the
Behind this guarantee are the entire re­
property as seen from an income as well as
sources of the Fidelity Bond & Mortgage
a construction point of view. Many fac­
Company— capital, surplus and undivided
tors enter into this valuation. Experience
profits and reputation. Permit us to send
and conservatism are essential to the cor­
you literature describing latest issues of
rect determination of this figure.
Fidelity 6 per cent First Mortgage Real Es­
The Fidelity Bond & Mortgage Company is
tate Bonds.

P toelitYJl.
- l BOND ^MORTGAGE CO.
J . U . M E N T E E R . P r e i id e n t

I N C O R P O R A T E D 1913

H om e Office, 6 1 5 C h e m ic a l B l d g ., S t . L o u is
Chicago

^

Denver
NR387

70

May, 1929

M id - C o n t i n e n t B a n k e r

meetings of the loan or finance com­
mittee each week and after passing
upon applications for credit, all loans
maturing within the period until the
next regular meeting should be in­
spected and considered. Definite in­
structions should be given the execu­
tive officers as to each item—whether
it should be required to be paid,
whether additional security should be
demanded or whether it be renewed
with or without reduction. At the
same time all overdue paper should
be inspected and reasons for its non­
payment explained.
The matter of overdue paper is one
requiring the constant attention of the

officers and when it becomes apparent
that such paper must be renewed again
and again, it is a good and sound pol­
icy to require such borrowers to go
upon an installment basis with peri­
odic payments within their ability to
meet. Any loan which is renewed
without reduction twice should be con­
sidered to be unsatisfactory because it
is an indication of a freezing condition
and prompt steps should be taken.
The whole note case should be in con­
stant flux through additions and reduc­
tions. A stationary note case is pretty
sure to set like concrete.
One of the most satisfactory indi­
cations disclosed by our examinations

is the progress which is being made
by banks in the improvement in their
note cases. While it is true that there
are still too many junior liens in them,
the trend is in the right direction and
I have no doubt that the present ten­
dency to self analysis will result in
properly balanced note cases and defi­
nitely established loan policies within
a comparatively short time. T h e
changes can not be effected over night,
a week or a month but will evolve
much as the general conditions in our
country require.—From an address de­
livered at the Mississippi Valley Con­
ference on Commercial Bank Manage­
ment, Chicago, March, 1929.

Security

-

First

National* s

" Industrial S u rrey99 O u t

0 / Guaranteed

60

SAFETY

Surety Com pany Protection

C O M P A R A T IV E L Y large number of Banks have
found the Bonds of the First National Company
of Baltimore, Maryland, the Safest and most Profitable
medium of Investment for their own funds, as well as
the funds of their Bond Buying Customers.

A

Maturities Six months to Ten years— Liberal Conces­
sions— Established Re-Purchase Plan, which assures
Instant Marketability, are additional reasons why you
should interest yourselves in these Absolute Safe Bonds.
The demand for Guaranteed Mortgages is constantly in­
creasing. Y O U should be supplying your Bond Buying
Customers with their requirements of Guaranteed Mort­
gage Bonds.
Write today for Circular “ O ,” which gives full and com­
plete details.

Middle States Bonj & investment Gl

Containing a special article on com­
mercial aviation in Southern Califor­
nia and a survey of subdivision ac­
tivity in addition to a complete revew of the business year, the annual
“ Industrial Survey’ ’ published by the
Security-First National Bank of Los
Angeles has just come from the press.
The booklet was prepared under the
direction of J. R. Douglas, assistant
vice-president and manager of the Se­
curity-First National ’s research de­
partment.
Two of the special articles were pre­
pared by Arnold T. Anderson, of the
Security - First National’s research
staff. One on aviation gives a review
of airplane manufacture and commer­
cial flying operations in the southland,
with brief sketches of various com­
panies, including, Douglas Aircraft
Corporation, Lockheed, Kinner Motors,
Western Air Express, Maddux Air
Lines, Pacific Air Transport and
Standard Air Lines.
The report points out that there has
been greater application of the air­
plane to the many uses of mankind in
the first twenty-five years of its his­
tory than occurred in the same period
in the history of the railroad. On the
twenty-fifth anniversary of the rail­
road in 1850, there were 9,021 miles
of trackage in the United States, while
on the similar anniversary of the air­
plane in 1928 there were 14,941 miles
of airways in daily operation over
mail and passenger routes, 6,637 miles
more scheduled to be included soon.

Snvestm ent Securities

Paul Brown Blcfg.


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Federal Reserve Bank of St. Louis

MAIN

2051

Saint Louie

A Real Uplifter
A negro mammy had a family of
well-behaved boys. One day her mis­
tress asked:
“ Sally, how do you raise your boys
so well ? ’ ’
“ Ah raise dem wid a barrel stave
and Ah raises ’em frequently!”

M

o n t h l y

Q

u o t a t io n

S

h e e t

Compiled and Published
by the Statistical D epartm ent o f

Mark C. Steinberg & Company
M e m b e r s N ew Y o r k , C h ica g o a n d S t . L o u is S to ck E x ch an ge s
C h ica g o B oard o f T r a d e — N ew Y o r k C o tto n E xch an ge
A s so c ia te M e m b e r s N ew Y o r k C u rb M a r k e t

MEZZANINE — BOATMEN’ S BANK BUILDING
ST. LO U IS

GArfield 4600

GArfield 4600

May, 1929

_______________________

Recent Attractive Bond Offerings
"VVe describe briefly below several bond issues offered recently. W e will be pleased to send on request full descriptive
circulars on these bonds or on any other important new offerings. A more complete list of high-grade investments will be
found on the reverse side of the sheet.
GENERAL METALS REALTY CORPORATION
First Mortgage Serial 6% Bonds

FIRST BAPTIST CHURCH OF ASHEVILLE, NORTH CAROLINA
First (Closed) Mortgage 6% Real Estate Bonds

D u e S e m i -A n n u a l l y to 1 9 3 9

D u e S e r i a l ly to 1 94 1

Company is wholly owned subsidiary of the General Metals Refining
Company. Bonds are secured by land and plant in St. Louis leased
to the parent company, whose earnings for the past six years have
averaged over 22 times the maximum annual interest charges on this
issue. For five of these years such net earnings exceeded $150,000,
the principal amount of this issue, and for last year were $197,908.
Priced to Yield 6.00%

This church, founded 100 years ago, has a congregation of 2,000
including many of the wealthiest and most influential men in Ashe­
ville, and is one of the largest Baptist churches in the South. The
land, buildings and equipment cost $624,000, and are now conserva­
tively valued at $750,000. The amount of the loan, $315,000, is only
42% of the present valuation.
Priced to Yield 6.00%

TEXAS AND PACIFIC RAILWAY COMPANY
GENERAL & REFUNDING MORTGAGE 5% BONDS, SERIES “C”
D u e 1979

Issue will be secured by direct lien on all the lines of railroad
and appurtenances thereof now owned by the company, including
valuable terminal properties in Fort Worth, Dallas and El Paso,
Texas; Shreveport, Louisiana, and a lien on other equipment. Earnings
for the past six years have averaged over 2% times fixed charges,
while in 1928 gross income available for fixed charges and rentals
amounted to $11,962,847 compared with a requirement of $3,830,170.
( A p p li c a t i o n w i ll b e m a d e to lis t o n N e w Y o r k S t o c k E x c h a n g e .)

Priced to Yield Over 5.00%

UTILITIES POWER & LIGHT CORPORATION
30-Year 5% Debentures— With Stock Purchase Warrants
D u e 1959

American properties of this company include Laclede Gas Light,
Laclede Power & Light, and St. Louis Gas & Coke Company. In
addition, the company owns substantial British properties furnishing
utility service in a territory which is largely within a 100-mile
radius of London. Net earnings after depreciation and taxes amounted
to $5,995,659' in 1928, compared with $3,196,596 in 1927. Interest re­
quirements on the total funded debt equal $2,570,000.
Warrants
entitle holder to purchase a block of seven shares Class A and 3%
shares Class B at an aggregate price equal to $55 per share up to
February 1, 1934. (A p p li c a t i o n w ill b e m a d e to lis t o n th e N e w Y o r k
S t o c k E x c h a n g e .)

THE PHILADELPHIA AND READING COAL AND IRON COMPANY
Convertible 6% Debentures

Priced to Yield 5.13%.

D u e 191)9

SOUTHERN CITIES PUBLIC SERVICE COMPANY
Convertible 6% Debentures

Company owns directly or through subsidiaries acreage estimated
to contain about 2,700,000,000 tons, or approximately one-third of all
the known unmined anthracite in the United States.
During the
last ten years output has averaged about one-eighth of the total an­
thracite production of the country. Proceeds will provide for two
modern electric breakers, for electrification of the mines tributary
thereto, for the retirement of $9,950,000 notes payable, and for other
corporate purposes. ( L i s t e d o n t h e N e w Y o r k S t o c k E x c h a n g e .)
Priced to Yield 6.00%

Territory served by this company and subsidiaries is located in the
southeastern part of the United States in sections that are showing
substantial growth and increasing industrial activity. Net earnings
in 1928 applicable to this issue were $2,385,660, or over 2% times
annual interest requirements. Convertible after November 1, 1929,
and prior to November 1, 1934 into 22 shares Class A stock of Central
Public Service Corporation for each $1,000 bond.
Priced to Yield 6.08%

D u e 1 94 9

IMPORTANT NEW BOND ISSUES OFFERED IN APRIL
5.60%
City of Chicago. Tax Anticipation Warrant Notes........................................... •57s & 6 % due 1930
Prices to yield
6.00%
to yield
6 % due 1949
Philadelphia & Reading Coal & Iron Company, Convertible Debenture..
@ 100
95
to yield
5.93%
American 1. G. Chemical Corporation, Convertible Debenture.................
5J/2% due 1949
@
Prices to yield
4.75%
State of Arkansas, Highway & Toll Bridge........................................................
5 % due 1930-63 @
99
to yield
Southern Cities Public Service, Convertible Debenture.................................
6 % due 1949
6.08%
@
4.50%
100
to yield
Consolidated Investment Corporation of Canada, First Collateral Trust.
4^2% due 1959
@
99
6 % due 1930
to yield
7.05%
Fox Film Corporation, Gold Notes........................................................................
@
5.05%
99
Carolina Power & Light Company, First & Refunding Mortgage...............
5 % due 1956
to yield
@
6.25%
to yield
Hotel Pierre, First Mortgage Leasehold..............................................................
6'/4% due 1949
@ 100
5.50%
to yield
Straus Safe Deposit Company (Chicago) Debenture................................... ....
@ 100
57a% due 1943
6.05%
6 % due 1944
Parmelee Transportation Company, Convertible Debenture.........................
@
9972 to yield
94
5.50%
due 1949
to yield
Massachusetts Utilities Associates, Debentures, Series “ A” .........................
@
5 %
Prices to yield 4.20—4.35%
St. Louis, Mo., Coupon or Registered....................................................................
472% due 1934-49 @
6.34%
6 % due 1939
Garlock Packing Company, Convertible Debenture.........................................
@
9772 to yield
94
to yield
4.88%
Pittsburgh & West Virginia Railway, First Mortgage Series “ B” ...............
472% due 1959
@
The above bonds are quoted subject to change in market.
We will be pleased to accept orders for any issue at current prices.
Subscriptions received for all new issues.
Orders by correspondence given careful attention.

$50,000,000
30,800,000
30,000,000
28,000,000
17,500,000
15,000,000
12,000,000
8,000,000
6,500,000
6,000,000
5,000,000
4,000,000
3,600,000
3,000,000
3,000,000


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

Mark C. Steinberg & Company
M e m be rs N e w Y o rk , C hicago and St. Louis Stock Exchanges
Chicago Board o f Trad e— N e w Y o rk C otton Exchange
Associate M e m be rs N e w Y o rk C u rb M arket

MEZZANINE — BOATMEN’ S BANK BUILDING
ST. LOUIS

GArfield 4600

GArfield 4600

Q U O T A T IO N S— M A Y , 1 9 2 9
IN D U STR IAL AND R A ILR O A D BONDS

PUBLIC U T IL IT Y BONDS
ISSUE

Rate

Arizona Edison Co., 1st “ A ” ....................
Associated Gas and Electric, Conv. D e b .
Associated Gas & Electric, Cons. & R ef..
Central Gas & Electric, 1st Lien & C o ll..
Central Public Service, Conv. Deb...........
do
do

do
do

with warrant.. .
ex-warrants. . . .

City & Suburban Pub. Serv., Ser. " A ” . . .
Columbus Ry., Pwr. & Lt., 1st & R e f....
Commonwealth Utilities, Conv. Deb. “ A ”
Community Pwr. & Lt., 1st Mtge. Coll. .
Community Water Service, Deb. “ B ?’ . . .

E. St. L. & Suburban, Coll. T r.................

Houston Lighting & Power, 1st Lien. . . .

5
100
5
96
5
85
6
100M
6
97 ‘
6
98
5M 109
90
5
6
100
90
4M
5 M 90
4i l
89
5 ~ 86
5
139M
85
5
5
94
5
98
5
92
90
5
93
4M
101
96M
6 " 100 "
5
90
5M 88
5
99
90
5i£
5 ~ 92
99
6
5
95M
5
96 34
4M 99 "
5
97
99
5
G
103U
6

Illinois Power & Light, 1st & Ref. “ C” . . .

Keystone Water Works, 1st Lien.............

Oklahoma Natural Gas, 1st Mtge. “ B” . . .

Public Service Subsidiary Corp. ,Deb. “ A ”
St. Louis County Water, 1st.....................

Southwestern Power & Light, Deb...........
State Telephone Co. of Texas, 1st “ A” . . .

Western Power, Conv. Coll. T r ................

Bid

Asked
101
97
87
101M
99
100
lllv
91
101
91
92
91
87M
141M
87
96
100
90M
94
102
97M
102 *
92
90
93
94
101

96
98
100

99
101

105 M
102 ~
93 M 94M
91
90
98
96
99
101
104
108
100
97
96
94
97
94
92
90
105
104
100
99
100

5
4M
5M
5M
6 ~
G
5
6
5M
5M
5jJ
5
100
5
94
5
94
5
99
5
99
5
100
5
91
86
5M
6
104
6
102
5M 100
6 ~ 96
5
89
5
84
5
62
5
99 y2
5M 99 *
5 ~ 100
5M 104
4M 92
5M 94 M
5
97
5
98
5M l o i M
6
85
5
95
G
85
6
84
6
99
in2W
5
6
102' '
5
96M
5
96 '
6
93
5
96
4M, 87
5 ~ 55
55
6
5
99
5
99
5
100
5M 102
101
5
GM 99
6 ~ 95M
6
99 ~
5
95
4
83
98 M
5
5M 119 *

101

96
95
100
101

103
93
91
106
104
101

99
91
86
64
io iM
100 ~
101
106
94
96
99
100
103M
97
87
89
101
103M
104
98M,
98' '
96
99
89
59
59
100
100
103
103
104
101
97M
101 '
97
83M
100M
121

Call
Price

Due

104f
106'
105t
not
105t
102
105t
102t
105t
105+
105t
105t
105+
105t
105t
105+
N.C.
105
102
105t
no
104 %-\
103Mt
105t
103t
102
102Mt
105t
105t
105
105
N.C.
105t
104+
105+
105t
105f
105+
105+
103 K i
N.C.
103t
105+
105f
104+
105+
101 +
N.C.
lo s t
107Mt
104+
105
N.C.
105t
103t
105f
105f
105+
105+
105+
105+
105
105
105t
no
not
102Mt
104%t
N.C.
105
105t
100
105
105t
104M
N.C.
105t
no
105
105t
105+
N.C.
105t
105+
102M
N.C.
no
105
104t
104Mt
not
not
103t
102M
n .c 7
105
102M

1968
2028
1953
2024
1945
1933
1977
1968
1946
1967
1949
1958
1958
1963
1963
1969
1936
1952
1934
1957
1953
1948
1938
1957
1946
1933
1937
1942
1942
1932
1940
1930
1967
1953
1953
1953
1956
1958
1950
1945
1942
1947
1961
1951
1952
1953
1935
1934
1952
1968
1948
1936
1959
1957
1956
1952
1948
1950
1938
1958
1948
1941
1952
1954
1956
1962
1978
1949
1959
1951
1945
1933
1958
1958
1946
1931
1954
2022
1943
1957
1941
1936
1968
1947
1942
1932
1933
1954
1954
1967
1974
1973
1952
1932
1934
1942
1957

Interest
Dates

ISSUE

Rate

Apr. & Oct.

Bagley-Clifford Corp., 1st Lshld. "A ” . ...

Feb. & Aug.
Apr. & Oct.
Mar. & Sept.

Belmont Building (N.Y.), 1st...................
Bloomington, Decatur & Champaign. . . .
Bowser (S. F.) & Co., 1st M tge...............

Feb.& Aug.

Broadway & 38th St., 1st Mtge. Lshld...

May & Nov.
May & Nov.

do
do

3-year Convertible Notes. . ..
10-year Convertible Deb.......

Jan. & July
Jan. & July

Chicago Evening American, Deb..............
Columbus, Delaware & Marion Elec. 1st..

May & Nov.
Mar. & Sept.
Mar. & Sept.

Dodge Mfg. Co., 1st M tge........................
Dold (Jacob) Pack. Co., 1st.....................
11 West 42nd Street, Inc., 1st Lshld........

Apr. & Oct.

Fox St. Louis Theatre, 1st Fee & Lshld..

Mar. & Sept.

Heine Boiler Co., 1st M tge.......................

June & Dec.

June & Dec.

Feb. & Aug.

Jan. & July

Illinois Glass, Debenture...........................

Loew’s Theatre & Realty Corp., 1st Lien.

do

Series “ C” ...............................

Medinah Athletic Club, 1st......................
Missouri-Illinois Realty Co., 1st M tg e .. .

Feb. & Aug.

Monsanto Chemical Works, 1st M tge___

May & Nov.
Jan. & July

Peoria Railway Terminal, 1st Guar.........
Pickering Lumber Co., 1st M tge.............

June & Dec.

Rossville Comm’l Alcohol,, Conv. D eb.. .

Jan. & July

St. Louis Car Co., 1st M tge.....................

Mar. & Sept.

St. Louis, Springfield & Peoria, 1st R e f. .
Santa Ana Sugar, 1st M tge.......................
Shaffer Oil & Refining, Conv. Notes........
Scruggs-V andervoort-Barney....................

June & Dec.
Jan. & July

Sevilla-Biltmore Hotel, 1st Mtge.............
Southern 111. & Mo. Bridge, 1st................

Jan. & July
Feb. & Aug.

Jan. & July

Truax-Traer Coal Co., Conv. Deb...........
United Post Offices, 1st M tge...................
U. S. Dairy Product, Conv. Notes “ C” . . .
Ward Baking Co., 1st M tge.....................
Wayne Pump Co., Deb. with wrts...........
Weightograph Corp. Coll. Notes.............
Western Pacifio R. R., Sec. Notes............
Whitaker Paper Co., 1st Mtge.................
Wurlitzer (Rudolph) Co., D eb.................

7
6
7
6M
6
6M
6M
5
7
6M
7
6M
6M
6

6
6K
7' ~
6
6

5
5M
5M
7 '
6

6M
6
6
6M
6M
6M
7Mj
5M
6M
6M
6M
5M
6

5
6
7
4M
6
6
4
6
6
6
6
6

6
4
5M
6
7M
6
7
4
6
5M
5M
5M
6
6
5
6
5M
4
6
5
7
6
4
6
7
5
4
5M
5
8
6
7
6
7M
5M
4
6
6M
5M
6M
6
6
6
4
7
7M
5
6

Bid
104 M
97
97M
86
97
94
96
87
100
99
99
103M
100M
99 *
95
102
93
99
97
90
93
97M
74
87
96
99
82
98
98
96
98
96
96
95
98
99
100

97
13X
92
101

Asked
101
99M
87
100
97
98
90
102
101
102
V
97
97
101
100
92
96
98
76
88

98
101
85
100
100
100

98
99
100

100
101

18X
90
95
103

98 M, 100
89
86
95
97
101
103
90
91M
90
91M
90
91M
95
74
75
99
98
106
101
98
100
103M
65
75
100

94
96
95
95 M
99
101
104M 105
99
75
70
97
99
95
97
87
90
98
99
93
95
97
102
103
106
75
101
100
89
92
99
97
99
90
87
99
101
95
98
99
99M
98^
98 H
101 * 103 _
99 M
82
78
96
99
96
97
96
99
95
99
100
103
87
92
99
102
95M 96 %
107
109
93
97
io i
99

Call
Price
105
105t
104+
102+
103+
102+
102+
105
103f
10334 t
105+'
105+
105+
100
102M +
105f
105'
105t
102Mt
102
105f
105+
105+
105t
105f
101 +
102+
103+
105+
105+
106
103f
104Mt
105f
107M +
10234 +
101 +
105
N.C.
105Mt
105
103t
105+
N.C.
103f
105+
101
101
101
101 t
110

104t
102

N.C.
105f
105
N.C.
103
N.C.
103
102Mt
not
102
N.C.
1041'
10lt
102M
101t
105
N.C.
103
103
104Mt
103341'
N.C7'
N.C.
102
105
100
102t
102
105t
108t
105t
N.C.
105t
105t
102+
105+
105
105t
102
100
N.C.
102M
105
104t

Due
1937
1948
1945
1933
30-42
1951
1944
1940
1934
1936
1945
1943
1939
1929
1936
1944
1934
1948
1939
1937
1938
1937
1942
1942
1945
1934
1939
29-41
1943
1942
1941
1948
29-47
29-33
29-36
1938
1933
1936
1943
1936
1940
1938
29-41
1939
1947
1962
1942
1943
1946
1931
1939
29-37
29-39
1937
1947
1934
1951
29-36
31-56
1943
1942
1947
30-42
1955
1944
1931
1937
1946
1954
29-39
1949
1951
1935
1934
1930
1930
29-35
1939
1931
1933
29-39
1941
1937
1948
1951
1958
1943
1935
1935
1937
1948
1932
1930
1942
1932
1931
1938

interest
Dates

Jan. & July
Feb. & Aug.
May & Nov.
May & Nov.
Jan. & July
June & Dec.
May & Nov.

Jan. & July
Jan. & July
Jan. & July
May & Nov.
May & Nov.
May & Nov. 15
Apr. & Oct.

Apr. & Oct.
Jan. & July

Mar. & Sept. 15
Apr. & Oct.
Feb. & Aug.

June & Dec.
June & Dec.
May & Nov.

June & Dec.
Feb. & Aug.
Jan. & July
May & Nov.
Jan. & July
Jan. & July
May & Nov.

June & Dec.
Apr. & Oct.
Mar. & Sept.
Mar. & Sept.
Apr. & Oct.
May & Nov.
Mar. & Sept.
May & Nov.
May & Nov.
May & Nov. 15
Feb. & Aug.
May & Nov.
June & Deo. 15
June & Deo.
Jan. & July
Apr. & Oct.
May & Nov.
Mar. & Sept.
Jan. & July
Jan. & July 15

'o o t n o t e s :-

f.— Callable on a scale from price Indicated. Details upon request.
v—T o be retired In conn ection with new financing.
W e fu rn ish q u o ta tio n s o f o th e r secu rities on re q u e st.

N.C.— Non-Callable.

X— Sells flat.

Y— In default.

O u r fa cilities en ab le u s to develop m a rk e ts on in active an d closely h e ld issu es.

Wfor
R FRASER
IT E , W IR E O R P H O N E U S A B O U T A N Y S E C U R IT Y IN W H IC H Y O U A R E IN T E R E S T E D
Digitized
We do not guarantee the statistics and information in this pamphlet, but have obtained them from sources deemed reliable.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Mark C. Steinberg & Company
M e m b e rs N e w Y o rk , C hicago and St. Louis Stock Exchanges
C h icago Board o f T rad e— N e w Y o rk C otton Exchange
Associate M e m be rs N e w Y o rk C u rb M arket

MEZZANINE — BOATMEN’ S BANK BUILDING
ST. LOUIS

GArfield 4600

GArfield 460<

Q U O T A T IO N S — M A Y , 1 9 2 9
M ISCELLANEOUS ST O C K S— Continued

FOREIGN BONDS
ISSUE
Argentine (Republic of), pesos.............................
Belgium, Premium Loan of 1920, fcs..................
Bolivia (Republic of), $ ........................................
Brazil, Loan of 1895, £ .........................................
Brazil, Loan of 1889, £ .........................................
Buenos Aires, Loan of 1915, £ 100 pcs................
Chile (Republic), Loan of 1911 (1st Ser.), £ . . . .
Colombia, External of 1911, £ .............................
Copenhagen, Loan of 1901, £ ...............................
Cuba, Internal Loan of 1905, $ ............................
European Mortgage & Inv. 1st, $ .......................
French Premium Loan, fcs...................................
French Victory Loan, fcs......................................
Italian Cons. Loan (perpetual rentes).................
Japanese, Loan of 1905, £ ....................................
Midi Railroad, 1920, fcs........................................
Paris-Orleans R. R., 1921, fcs..............................
Poland, Conversion Loan of 1924, zl...................
Salvador, Loan of 1924, “ C,” $ ...........................
Sao Paulo, Loan of 1907, £ ..................................
Sao Paulo (City of), Ext. $ ...................................
Tokyo, Loan of 1926, £ ........................................
United Industrial (Germany), $ ...........................
Uruguay, Loan of 1891-96, £ ...............................

Rate
5
5
6
5
4
5
5
6
4
5
734
5
5
5
5
6
6
5
7
5
6
5)4
6
334

Bid
79
26
78
67
52
84
82)4
88
83)4
97
97
45
35
41
78
36 J4
36)4
6
87
75
92)4
88
85
66

Asked
81
28
80
69
54
86
85)4
91
86)4
99
100
47
37
43
80
38)4
38)4
8
89
77
94 )4
89
87
68

Due
1945
1995
1940
1957
1966
None
None
None
None
None
1950
1980
None
None
1947
1960
1956
None
1957
None
1943
1961
1945
None

Interest Dates
Mar. & Sept.
May & Nov.
Apr. & Oct.
Feb. & Aug.
Apr. & Oct.
Jan. & July
Jan. & July 15
Mar. & Sept.
May & Nov. 15
May & Nov. 28
May & Nov.
May & Nov.
Feb. 16 quar.
Jan. & July
Mar. & Sept. 12
July & Dec.
July & Dec.
Jan. & July
Jan. & July
Jan. & July
May & Nov.
Apr. & Oct.
June & Dec.
Feb. quar.

M ISCELLANEOUS ST O C K S
ISSUE

Bid

Asked

Allied Power & Light Corp., com. (no p a r)....
Aloe (A. S.) Company, common......................
do
preferred..........................................
American Stove Company................................
Associated Gas & Electric, pfd.........................
Asso. Simmons Hardware, pfd.........................
Beck & Corbitt, pfd...........................................
Berry Motor Car, common (no par)................
Boyd-Welsh Shoe Co. (no par).........................
Brauer Bros. Shoe, com. (no par)......................
Brown Shoe Co., p fd .........................................
Bruce, E. L. Co., preferred...............................
do
common (no par)............................
Central Coal & Coke, pfd.................................
do
common...........................................
Century Electric C o...........................................
Certain-teed Products, p fd ...............................
Chicago Ry. Equipment, pfd. ($25 par).........
do
common ($25 par)..........................
City Ice & Fuel (Cleveland), pfd.....................
Claude Neon Lights, new (w. i . ) .....................
Commonwealth Utilities, “ B ” Com. (no par).
Community Power & Light, pfd. (no par). . . .
Consolidated Lead & Zinc “ A ” ........................
Consolidated Retail Stores, pfd., w. w ............
Di Giorgio Fruit, units..............................
Driver-Harris Co., pfd.......................................
do
common...........................................
E. St. L. & Inter. Water, 1st pfd.....................
Elder Manufacturing, pfd.................................
do
class “ A ” common.........................
do
common (no par)............................
Ely-Walker D. G., 1st p fd ................................
do
2nd pfd..............................................
do
common............................................
Emerson Electric Mfg., pfd..............................
Empire Gas & Fuel, p fd ....................................
do
do 7% p fd ..........................
Empire Power, pfd. (no par)............................
Fidelity Bond & Mtge. ($50 par).....................
Frost Lumber Industries, Inc...........................
Fulton Iron Works, pfd.....................................
do
common.............................................
Globe-Democrat Pub., pfd................................
Godchaux Sugars, Inc., 1st p fd ........................
Hamilton-Brown Shoe ($25 par)......................
Howe Scale, pfd._...............................................
Hussmann-Ligonier (no par)............................
Huttig Sash and Door, pfd...............................
do
common (no par)............................
Hydraulic Press Brick, pfd...............................
do
common.............................................
Illinois Power & Light, pfd. ($100 par)...........
do
pfd. (no par)...................................
Indianapolis Power & Light, pfd.....................
Industrial Finance, 1st pfd.........................
do _ common ($10 par)..........................
International Shoe, p fd .....................................
do
common.............................................
Jenkins Television, common (no par)..............
Jersey Central Pr. & Lt., p fd ...........................

48M
35
104
108
99
44
90

49M
3534
10434
111
101
46

Div.
Rate
$2.50
7
10
634
7
7
$1.20
$3
56c
7
7
$2.50
5

16
37M
10
m y 2 118
98
44 )4
4634
65
75
40
50
120
b
115
64
7
55
18
20
7
9
8
105
103
6)4
40
39
38
36
d
90
95
$6
e
1534
15M
115
120
8
37
32
94
98
7
190
200
7
101
108
8
74
75
$5
$1
32
34
107
7
85
87
6
$1.50f
28 M 2834
100
103
7
6
90)4
9134
7
96
96)4
$6
86
88
8
53
60
12
300
315
55
8
6
5)4
7
116
118
87
89
7
17
15
49
45
7
2
26 )4
25)4
90
7
85
17
$1.50
16)4
6ha
72 y2 7334
3
3)4
6
96
98
9734 $6
95 34
102
101
6)4
83
6
80
k
38
37
6
106)4 107
64
$2.00
63 )4
11%
10?4
7
102)41 10334
37
9

When Payable
None being paid
Jan. quarterly
Jan. quarterly
Mar. and Sept.
Mar. quarterly
Last paid, Apr. 1, 1924
Jan. quarterly
Mar. 31 quarterly
Jan. quarterly
Mar. quarterly
Feb. quarterly
Jan. quarterly
Feb. quarterly
Last paid, Jan. 15, 1924
Last paid, 1)4 % 1-15-24
Jan. quarterly
Last paid Jan. 2, 1929
Jan. quarterly
Last 3734c, Oct., 1927
Mar. quarterly
None being paid
Jan. quarterly
Feb. quarterly
Irregular
Jan. quarterly
None being paid
Jan. quarterly
None being paid
Mar. quarterly
Jan. quarterly
Jan. quarterly
Jan. quarterly
Jan. and July 15
Jan. and July 15
Mar. quarterly
Jan. quarterly
Monthly
Monthly
Jan. quarterly
Jan. quarterly
No fixed dates
Passed 9-1-26
11-1-23 last paid
Mar. quarterly
Last paid 10-1-1923
6-1-28 last paid
Last paid April 1, 1928
Jan. 15 quarterly
Jan. quarterly
Jan. quarterly
Jan. quarterly _
None being paid
Jan. quarterly
Feb. quarterly
Jan. quarterly
Feb. quarterly
No cash paid yet
34 % monthly
Jan. quarterly
None being paid
Jan. quarterly

*— Paid 35c extra Jan. 2, and 10c April 1, 1929.
Number of shares to be reduced in ratio
of one new for four old.
b — Paid $4.50 in cash and 5% in stock during 1928, and 5 % in stock April 1, 1929.
d— Pays 50c in cash and 1/20 share of stock each year,
e — Paid 25c July 2, 1928, and Jan. 1, and April 10, 1929.
f —Paid 75o extra Jan. 16, 1928, and 50o Jan. 15, 1929.
h— Paid 50c extra March 1, 1929.
ha— In arrears 48%. Paid 1% July 1, 1925, and 1% Jan. 1, 1926, on back dividends.
hb— Pays 12)4c extra each quarter.
hd— Paid 25o extra Jan. 3, 1928, and 1929.
he— Reduced quarterly payment to $1.00 from $1.75 on Oct. 1, 1928.
a— Liquidating dividend of $6 to be paid.

ISSUE

Kansas City Public Service, pfd. v.t.c.............
do common (no par), v.t.c......................
Koplar Company, preference (no par)............
Laclede Gas Light, p fd .....................................
do
common...........................................
Laclede Power & Light, common.....................
Laclede Steel Company ($20 par).............
Landis Machine Co., common..........................
LeGear Medicine ($50 par)...............................
Lexington Utilities Company, pfd...................
McQuay-Norris Mfg. (no par).........................
Medart (Fred) Mfg., common..........................
Meletio Sea Food, pfd.......................................
do
common (no par)...........................
Michigan-Davis Co. (no par)...........................
Mississippi Glass, capital ($25 par).................
jMo.-Portland Cement ($25 par)......................
Moloney Electric Co., Class A .........................
Monroe Louisiana Carbon, com. (no par) . . . .
Monsanto Chemical Works, common..............
National Candy, 1st p fd ...................................
do
2nd pfd.............................................
do
common (no par).............................
National Gypsum, pfd......................................
do
Class “ A ” , common........................
National Public Service, Series “ A” , p fd ........
National Tile, common.....................................
Niese Grocery, pfd.............................................
N. O. Nelson Mfg., common............................
North American Lt. & Power, pfd...................
North Continent Utilities, common.................
do
pfd.....................................................
Pacific Gas & Elec., pfd. ($25 par)..................
Parke, Davis & Co. (no par)............................
Pedigo-Weber Shoe, com. (no par)..................
Penney (J. C.) Company, common..................
do
common (new) w. i.........................
Piggly-Wiggly Corp., common.........................
Procter & Gamble Co., pfd...............................
Remington Arms Co., Inc., 2nd p fd ................
do
common............................................
Rice-Stix D. G., 1st pfd....................................
do
2nd pfd..............................................
do
common (no par).............................
St. Louis Amusement, Class A .........................
St. Louis Car Co., pfd.......................................
do
common............. ; ............................
St. Louis Independent Packing........................
do
pfd....................................................
St. Louis Nat’l League B. B. Club..................
St. Louis National Stock Yards.......................
St. Louis Public Service, common...................
do
pfd....................................................
St. Louis Rocky Mtn. & Pac., common..........
St. Louis Screw & Bolt, p fd .............................
do
common ($25 par)..........................
Scruggs-Vandervoort-Barney, 1st pfd.............
do
2nd pfd............................................
do
common ($25 par)..........................
Scullin Steel, Preference (no par).....................
Securities Investment, pfd................................
do
common............................................
Shapleigh Hdwe., 1st pfd. (par $25)................
do
common (par $25)..........................
Sheffield Steel, preferred...................................
Sieloff Packing (no par)....... .............................
Skouras Bros., Class “ A” ..............................
Southeastern Power & Light, pfd....................
Southern Acid & Sulphur, pfd..........................
do
common. .........................................
Southern Ice & Utilities, p fd ............................
do
common, Class “ A” .......................
Southwestern Bell Telephone, pfd...................
Stix, Baer & Fuller, common............................
Studebaker Mail Order, Class “ A” ..................
Union Elec. Light & Power, Mo., pfd.............
do
do pfd...................................
do
of Illinois, pfd................. ................
Union Metal Mfg., p fd .....................................
do
common (no par)............................
United Accounting Machine, com ...................
do
units (1 pfd. and 1 com .)..............
U. S. Dairy Products, Class “ A ,” common. ..
Wabash Telephone Securities, pfd...................
Wagner Electric Mfg., p fd ...............................
do
common ($15 par)..........................
Western Cartridge, pfd.....................................
do
common..........................................
Winchester-Simmons, p fd .................................

Div.
Rate

Bid

Asked

3834
55
37
7
50
100
240
300
51
5534
35
98
69
22
86
30
30
38
43 %
61
2
150
105
97
25
45
12
92
34
75
70
91)4
22
93
26M
48M
25
345
125
45
102
98
39
105
96
22
20
100
22

3934 $1.50 hb
57
$2hd
41
$7he
10
53
$4.40
5
243
10

75
105
95
19
76
19
100
25
75
75
173-6
3434
105
34
2434
58
103
1634
40
106
100
45
80
15
118
3734
24
10834
10234
10034
105
45

53
56
100
72
25
35
33
42
44
6134

2j
$3
km
634
$2
$2
7
$2
a
n
$2
$4

334

151
107
26
48
15
94
35
9434
23
95
2734
4934
2834
350
130
48
104
102
43
108
98
2234
25
103
24
12
85
97
20
78
21
80
80
18
35
35
61
105
18
44
112

$2.50r
7
7
$1.75
7
7
$3
7
6
$6
7
6
$1*
$2.50
$6nn

5
$8
7
7
$1.50
7
7
P

8

7
2
7
$1
6
7
$3
8
$3
6
$5
7
$1.201
$3
7
7
$3
7

When Payable
Mar. quarterly
Mar. quarterly
Jan. quarterly
None being paid
Mar. quarterly
June and Dec.
Mar. 15 quarterly
None being paid
Jan. quarterly
Feb. 15 quarterly
No set time
Mar. 15 quarterly
Jan. quarterly
Feb. quarterly
July annually
None being paid
Not yet announced
Feb. quarterly
Jan. quarterly
Jan. quarterly
Jan. quarterly
Jan. quarterly
Jan. quarterly
Passed 10-1-28
None being paid
Jan. quarterly
Feb. quarterly
Jan. quarterly
Jan. and July
Jan. quarterly
None being paid
Jan. quarterly
Feb. 15 quarterly
Jan. quarterly
Jan. quarterly
Irregular
Not yet announced
None being paid
Mar. 15 quarterly
Last paid 7-1-24
None being paid
Jan. quarterly
Jan. quarterly
Feb. quarterly
Last paid 1-16-1928
Feb. quarterly
None being paid
None being paid
Passed 11-1-28
P

Jan. quarterly
None being paid
Jan. quarterly
Mar. 30 quarterly
Feb. quarterly
Mar. quarterly
Jan. and July
Jan. and July
Passed 2-1-28
Jan. quarterly
Jan. quarterly
Jan. quarterly
Feb. quarterly
<1

Jan. quarterly
Jan. quarterly
Feb. quarterly
Jan. quarterly
Jan. quarterly
Mar. 15 quarterly
50
Mar. quarterly
90
None being paid
16
Jan. quarterly
7
11834
38
$1.50m Mar. quarterly
Jan. quarterly
$2
25
Jan. quarterly
7
11034
Jan.
quarterly
10434
6
Jan. quarterly
6
103
Jan.
quarterly
8
Jan. quarterly
48
$3
Not published
7
12
Feb. 28 quarterly
$4
50
47
Jan. quarterly
7
103
Jan. quarterly
7
106
$1.50h Mar. quarterly
4234 43
Jan. quarterly
6
100
Jan. 15 quarterly
6
200
None being paid
25
10

i—Paid 60c extra April 1, 1929
.
j — Paid cash extra of 7% in 1928 and 50% stock dividend in 1929. Stock split five
for one March 1, 1929.
k—Paid 10% in stock March 20,1929.
km— Paid 2% Jan. 25, Apr. 1, July 1, Oct. 1,1928; Feb. 1, and April 1,1929.
m— Paid 10% in stock Feb. 15, 1929.
n— Recently split four for one.
nn— Stockholders will be given two shares at $7.00 per share for each share held,
p— Paid $5.00 (20%) Oct., 1928, on preferred and common stocks,
q— Payable $2.00 on March 1 and $1.00 quarterly
r —Paid 10 % in stock April 1,1929. Stockholders will vote July 2,1929, on proposed
increase in capitalization and two for one split.

 AND UNLISTED STOCKS AND BONDS—ACTIVE AND INACTIVE SECURITIES— IN ALL MARKETS
LISTED
https://fraser.stlouisfed.org Quotations Are Nominally as of April 30, 1929, and Can Be Filed for Future Reference
Federal Reserve Bank of St. Louis

Mark C. Steinberg & Company
M e m b e r s , N ew Y o r k , C h ica g o a n d S t . L o u is S to ck E x ch an ge s
C h ica g o Board o f T r a d e — N ew Y o r k C o tto n E x ch an ge
A sso c ia te d M e m b e r s N ew Y o r k C u rb M a r k e t

MEZZANINE — BOATMEN’ S BANK BUILDING
ST. LOUIS

GArfield 4600

GArfield 4600

Q U O T A T IO N S — M A Y , 1 9 2 9
LOUIS B AN K ST O C K S
NAME OF BANK

Bid

Div.
Asked Rate

135
140
Baden Bank.....................
220
Bank of University City.
137 y 150
Belleville Savings Bank. .
320
200
Bremen Bank.........
450
Cass Avenue Bank.
300
130
140
Chippewa Trust Company.
145
155
Chouteau Trust Company. . 105
125
130
Clayton National Bank..
175
Easton-Taylor Trust Co.
180
105
115
First National Bank..
383
385g
First National, C laytou,___ 300
First National, E. St. Louis. 210
375
235
250
Grand National Bank........
150
180
Grant State Bank...............
175
Guaranty Bank & Trust Co.
120
130
Hamilton State Bank.........
130
137}/
Hodiamont Bank................
135
140
Jefferson Bank.....................
325
Jefferson-Gravois Bank. . . . . 175
Kirkwood Trust Company. . 145
155
150
160
Lafayette-South Side.
375
400
Lemay Ferry Bank...
225
240
115
120g
Lindel! Trust Company.
150
Lowell Bank..................
220
Manchester Bank..........
200
230
550
580g
340
350g
375
380g
Mound City Trust C o.......... 130
145
National Bank of Commerce 178 } / 180g
National City Bank.............. 108
115
Natural Bridge Bank............ 147
152
North St. Louis Trust Co. . . 175
Northwestern Trust Co
300
Park Savings Trust. . .
135
St. Louis County Bank ___ 600
St. Louis National Bank. . . . 125
135
St. Louis Union Trust Co. . . 500
520
Savings Trust Co.......
225
250
Security Nat’l Sav. & Trust. 170
Shaw Bank............................ 150
South Side Trust C o............. 190
Southern Commercial & Sav. 190
Southern Illinois National... 375
Southwest Bank..........
130
Ì4Ó
State Bank of Wellston
700
State National Bank. .
210
215gi
Title Guaranty Trust C o... .
10
15
Tower Grove Bank.......
345
Twelfth Street National ___
120
Union Trust, E. St. Louis... 150
160
United States Bank.............. 140
160
Vandeventer National.......... 155
165
Water Tower Bank............... 150
Webster Groves Trust C o ... 250
275
Wellston Trust Company. . . 245
310
West St. Louis Trust C o .. . . 165
185

6
8$
6
16$
8$
12Î
10$
4
6
6
6
10
6$
6
m
a
12
12Î
10
12
6
6
6
b
12
8
9
6Î
12
8$
6
8t
8
24 Í
12$
16f
6
9
6
6$
6$
6
6
12
4
16$
12
d
e
8
8$
12$
6$
25$
8
8$
8
6
6$
6$
8$
6

When Payable

INSURANCE ST O C K S
Capital and Book
Surplus * Value

Jan. and July...............

$297,281
428,897
Dec. annually...............
61,800
682,253
3,176,172
Dec. 31 and June 30. . . 1,142^367
Dec. 31 and June 3 0 ...
930.468
Mar. quarterly.............
267,475
292,832
Feb. quarterly..............
279 583
127,899
72,000
311,028
Jan. quarterly...............
2531970
1 % monthly.................. 20,247,615
a
125,994
813,363
June 30 and Dec. 31. . .
348,717
Mar. quarterly..............
3,236,361
Jan. and July................
1,014.993
329,771
Jan. quarterly...............
268,780
Jan. quarterly...............
129,667
Dec. 24 annually..........
57,639
580,264
651,766
2M % quarterly............
160J69
Jan. 1 quarterly............
485,121
Mar. quarterly.............
3,844,176
Mar. quarterly.............
113,944
Last l } / % Jan. 1, 1925. 4,428,557
288,681
468,391
Jan. quarterly...............
8111311
2% monthly................. 12,285,713
Feb. 28 quarterly.........
3,896,345
Jan. quarterly...............
8,713,057
Jan. quarterly...............
258,267
Jan. quarterly............... 15,519,966
} / % monthly................
1,273,058
June and Dec. 15.........
306,345
329,407
1,717,180
126,035
May 31 and Nov. 3 0 ...
596,552
Jan. and July...............
247,807
Jan. 2 quarterly............ 11,492,624
1% monthly..................
290,538
No fixed dates..............
557,158
No set time...................
285,654
Feb. quarterly..............
1,035,748
Jan. quarterly...............
389,871
Jan. and July...............
863,071
Jan. quarterly...............
260,927
234,948
3,085 941
Last 1 % April, 1924. . .
1,132,860
1,042,560
353 245
Jan. and July................
999^708
Jan. quarterly...............
1,593,723
Not yet announced. . . .
299,496
339,376
June and D ec...............
251,290
Jan. and July................
229,932
Mar. quarterly.............
369,095

149
214
127
227
159
571
311
134
146
140
128
120
156
127
184
126
203
349
162
145
165
134
130
115
290
130
160
162
179
228
148
144
234
162
410
229
290
129
155
127
151
165
343
126
596
124
229
145
159
141
169
195
352
130
470
154
113
209
167
159
120
170
251
230
185

YO RK B A N K STO C K S
Bk. of America N.A. ($¡¿5 par)
Bankers Trust, new............
Chase National (n ew )........
Chatham Phénix.................
Central Union Trust, new..
Chemical National. . . . . . . .
Corn Exchange, n e w ..........
Equitable Trust..................
First National.....................
Guaranty Trust...................
Irving Trust Co., n e w ........
Manufacturers Tr. ($25 par).
National Bank of Commerce.
National C ity........................
New York Trust...................
Public National ($25 par). . .
Seaboard National................
United States Trust........, . .

231
170
207
800
435
109
215
718
6500
1010
69
290
1018
368
280
316
1180
4200

235
iy 2
180
210g
810
16
440
115
24
230
20
724g 12
7200 100h
1020
16
71
295
5
1026
20p
372g
4h
290
20
4
320
1200g 16
4600
60

Jan. quarterly...............
Not yet announced. . . .
Not yet announced. . . .
Jan. quarterly...............
Not yet announced . . . .
Bi-monthly...................
Feb. quarterly..............
Jan. quarterly...............
Jan. quarterly...............
Jan. quarterly...............
Not yet announced . . . .
Jan. quarterly...............
Jan. quarterly...............
Jan. quarterly...............
Jan. quarterly...............
Jan. quarterly...............
Jan. quarterly...............
Jan. quarterly...............

$62,384,600
102,498,380
140,937,918j
28,960,600
55,162,400j
26,294,212
28,857,000
57,724,979
102,684,400
105,078,324
95,037,782j
52,112,500
74,317,848
212,618,318
35,938,100
19,885,603
26,912,900
25,404,313

*—Total capital, suplus, and undivided profits based on latest available statements.
$— Also extra dividend in 1928: Baden, 2 %; Belleville Savings Bank, 2 %; Boatmen's
National Bank, 2% ; Bremen Bank, 8% ; Cass Avenue, 2% ; Easton-Taylor
Trust, 2% ; First National Bank, St. Louis, 5% ; First National Bank, Wellston,
Mo., 5% ; Laclede Trust, 2% ; Lemay Ferry, 2% ; Lowell, 2% ; Mercantile
Trust, 2% ; Merchants-Laclede National, 6% ; Natural Bridge Bank, 1%;
North St. Louis Trust, 3% ; St. Louis Union Trust, 6% ; Southern Commercial
& Savings Bank, 2% ; Southern Illinois National, 4 % ; Southwest Bank, 1%;
State Bank of Wellston, 15%; Tower Grove Bank, 4% ; Water Tower Bank,
1%: Webster Groves Trust, 5% ; Wellston Trust, 8%.
a — Paid 15% June 30, and 12% Dec. 31, 1928.
b— Paid 25% Dec. 24, 1922, 1923, 1924 and 1925, and 5% Deo. 24, 1928; also paid
100% in stock Dec. 15, 1926.
d—Paid 6% Deo. 1925, 3% in June, and 4% in Dec. 1926 and 1927, and 6% Dec.
1928.
e—Paid 2% Jan. 1, 1925, 3% Feb. 1, 1926, 2% Feb. 1, 1927, 5% Feb. 1, 1928, and
6% Dec. 1928.
W e fu rn ish q u o ta tio n s of oth er secu rities on req u est.

W R IT E , W IR E O R P H O N E U S A B O U T
https://fraser.stlouisfed.org
W e _ d oBank
n o t of
g uSt.
a r aLouis
n te e t h e s ta tis t ic s a n d in fo r m a tio n
Federal Reserve

62
41
23 lj
215
441 j
438
262
192
1027
263
238j
74
298
213
359
75
245 j
1270 1

ISSUE
Am. Automobile Insurance ($10 par)
Am. Credit Indemnity ($25 par)..............
Am. Druggists’ Fire ($25 p a r ).................
Am. Nat’l Assurance ($50 par)................
Am. Surety Co. ($25 par).........................
Central States Life ($5 par)......................
Chicago Fire & Marine ($10 par).............
Continental Assurance ($10 par)..............
Continental Casualty ($10 par)................
Continental Life (St. L.) ($10 par)..........
Employers Reinsurance ($10 par)............
Fidelity & Deposit Co. of Md. ($50 par).
International Co. of St. L. ($1 par).........
International Life Ins. ($25 par)..............
Inter-Southern Life ($1 par).............
Maryland Casualty Co. ($25 par)............
Missouri State Life ($10 par)...................
National Surety ($50 par).........................
New World Life Ins. ($10 p a r )................
North American Life Ins. ($50 par)........
Standard Am. Fire Ins. ($25 p a r)............
Southern Surety ($10 par)........................
Title Insurance Corp. ($25 par)......... . ..

Bid

Asked

80
51
80
70
150
32
19
80
69
18
34
305

60
85
80
160
35
21
85
72
21
36
315
H
35
20
5 s/«
syg
155
145
84
87
140
145
15
17
210
195
10
12
43
45
20

Div.
Rate
$2
$4
10
$6
m
$1.60
$1.60
$1.50
$8n
r

r
$4.50s
$1.20
$5
80c
t

$1.60
6

When Payable
Jan. quarterly
Jan. quarterly
Mar. annually
None being paid
Mar. 31 quarterly
Jan. 31 annually
Last paid 40c 1926
Jan. quarterly
Jan. quarterly
Irregular
Feb. & Aug. 15
Deo. 31 quarterly
r
r
None reported
Mar. quarterly
Mar. 31 quarterly
Jan. quarterly
Mar. annually
No fixed dates
Not published
Jan. quarterly
Mar. quarterly

A E R O N AU TIC AL STO C K S
Aeronautical Industries, Inc. (no par).............
Air Investors, In c..............................................
Allied Aviation Industries, Inc. (no par).........
American Eagle Aircraft (no par)....................
Aviation Corp. of the Americas (no par)........
Cessna Aircraft Corp. (no par).........................
Consolidated Instrument of Am. (no par) . . . .
Curtiss A. & M., Inc., com. (no par)..............
Curtiss-Caproni Corp. (no par).........................
Curtiss Fly’g Service, com. (no par)................
Curtiss-Reid Aircraft, pfd. ($30 par)...............
Curtiss-Robertson Mfg., units..........................
Fokker Aircraft Corp., com. (no par)..............
Great Lakes Aircraft, Class A (no par)...........
Mahoney-Ryan, com. ($5 par).........................
National Air Transport, Inc. (new) (no par). .
Nicholas-Beazley Airplane ($5 p a r )................
Roosevelt Field, Inc. (no par)...........................
Southern Air Transport, Inc. (no par)............
United Aircraft & Transportation, com ..........
Universal Aviation, com (no par)....................
Warner Aircraft Corp. (new) (no par)............
Western Air Express (new) ($10 par)..............
Wright Aero. Corp., coin, (no par)..................

22
18
14
8
73
27 H
31
168
11
27
15 !/
125
43
19
20
35
20
15
17
146
17 !/
22
6 8 !/
260

24
20
16
10
75
29
32
171
13
28
17 !/
135
45
21
20H
36
20 X
16
19
148
18}/
24
69 }/
261

None being paid
None being paid
None being paid
None being paid
None being paid
None being paid
None being paid
Mar. & Sept. 15
$1
None being paid
None being paid
None being paid
None being paid
None being paid
$1.50 Not yet declared
None being paid
None being paid
None being paid
None being paid
None being paid
None being paid
None being paid
None being paid
ha
ha
$2hb Feb. 28 quarterly

IN VESTM EN T T R U ST ST O C K S
American & General Securities, (U nits)...........
American & Scottish Inv., com ($25 par).......
Bankers Inv. Tr. of Am. ($10 par) ................
Diversified Trustee Shares, Series “ A ” ..........
Federated Capital Corp. (new u n its)..............
Fixed Trust Shares (1 /1000th).........................
Guardian Investors (Del.) $6 units.................
do
do com .....................................
Insuranshares Corp. of Del. Class "A ” (no par)
Investment Trust Shares, Series “ A” .............
Oil Stocks, Inc., (no par)....................................
Prudential Investors, Inc., com. (no par)........
Shares in the South, Inc....................................
Shawmut Bank Investment (no par)..............
Standard Oilshares, Inc., Trustee Shares.......
United Corp., com. (no par).............................
United Corp., pref. (no par).............................
U. S. and Foreign Securities, 1st pfd...............
U. S. & Foreign Securities, Com. (no par) . . .

72
26
16
25 }/
53
22
90
15
22
18}/
50
26
43J/
44
13M
56
42
89
49

75
29
18
27
57
23
100
20
23
19}/
52
27
46
48
15
57
44
91
51

Mar. quarterly
$3
$1.20 Mar. quarterly
6
Jan. 1 quarterly
V
Irregular
Irregular
V
None being paid
$6.00 Jan. quarterly
None being paid
Not yet declared
Irregular
V
None being paid
None being paid
None being paid
None being paid
V
No set rate
None being paid
$3
Jan. quarterly
$6.00 Feb. quarterly
None being paid

FOREIGN ST O C K S
26
Fiat, capital stock (.20 lire par)........................
Ford Motor Co. (Belgium)................................
30
do
(Canada) Class "A ” (no par)
51
do
do
Class “ B ” (no par), 102
do
Ltd. (Eng.) (£1 par) receipts..
18
15
do
(France) (100 fcs. p a r )..........
General Electric. Ltd. (Eng.) (£1 par) receipts .
14!/
I. G. Farbenindustrie, A. G. (200 R M ) .......... 115
20
Karstadt (Rudolph), Inc., (Am. shares)..........
10
North German Lloyd (40 R M ) ..................... ..
55
Paris-Lyons Medi. R. R. (500 fcs. par)...........
42
Roan Antelope Copper Mines (5s par)............
6
United Electric Service (Unes), c o m .............

28
33
53
104
19
17
15
122
21
12
60
44
8

V

10
Y
V
V
V

No set time
None being paid
Not yet announced
Not yet announced
None being paid
None being paid
Annually
No set rate
No set time
Irregular
No set rate
None being paid
None being paid

f—Paid 4% extra Jan. 2, 1929.
g— Information on recent consolidation involving this bank will be furnished,
gh— Physical merger with First National completed,
li— Includes dividend on Security Co.
ha— Will pay 15c May 1,1929. No regular rate as yet.
hb— Will pay 100% in stock May 1, 1929.
j —Does not reflect present capital adjustments,
k— Paid $1 extra Deo. 31, 1927 and 1928.
m— Paid 85c in 1926 and 90c in 1927.
n— Paid $1 extra Dec. 31, 1928.
p —Including extra payments,
r— Taken over by Missouri State Life,
s — Paid 50c extra Deo. 22, 1927 and 1928.
t — Paid 43% in stock Jan. 10, 1925; also $5 in cash each Jan. and July, 1 9 2 6 .
v—Irregular. Details on request.__________________________________________

O u r fa cilities en able u s to develop m a rk e ts on inactive an d closely held issues.

A N Y S E C U R IT Y IN W H IC H Y O U A R E IN T E R E ST E D
in t h i s p a m p h l e t , b u t h a v e o b t a i n e d t h e m f r o m s o u r c e s d e e m e d r e l i a b l e .

Independent Oil and Gas Company
CAPITAL STO C K
Record first quarter earnings of $2,018,850, equivalent to $1.51 per share, direct attention to the favorable
position of Independent Oil and Gas Company capital stock.
Independent Oil and Gas Company was incorporated October 18, 1919, under Delaware laws. Its properties
then comprised 86 leases on 7,212 acres. It had ten producing leases on 765 acres, including 49 oil and 2 gas wells.
Nine and a half years of growth and development have brought the company from this small beginning into a
well-rounded enterprise doing a gross business in excess of $22,000,000 per annum, production for 1928 being in
the neighborhood of 11,000,000 barrels from its 768 wells in Oklahoma, Kansas and Texas. Operations have been
extended from time to time through the formation or acquisition of subsidiaries, principal among which are TriCounty Gas Company, Independent Pipe Line Company, and Manhattan Oil Company. These additions have
rounded out the Company’s operations and have made it a well-integrated unit with refineries, pipe lines, tank
cars, crude production, and retail distribution. Acquisition of the Manhattan Oil Company gave Independent Oil
and Gas Company 450 wholesale and retail stations in Missouri, Kansas, Nebraska, Iowa, and Minnesota, and
provided an outlet for its products. On February 1, 1929, oil pipe lines totalled 535 miles and gas pipe lines 275
miles, the latter transporting over 60,000,000 cubic feet of gas per day. The rapid growth of Independent Oil and
Gas Company in the last 18 months would appear to reflect in large measure the ability of Mr. Waite Phillips
and his associates who purchased control of the company in the latter part of 1927.
M any capital changes have been made from time to time in order to strengthen the company’s financial
structure, the latest step in this direction having been taken on November 30, 1928, when 351,801 additional shares
were sold to stockholders in order to retire the preferred stock and bonds of the Manhattan Oil Company and to
provide additional working capital. According to available figures, Independent Oil and Gas Company’s funded
debt amounts to $5,405,640 of which all but $101,640 is represented by the 6 % Convertible Debentures, due 1939.
This is followed by 1,333,572 no par shares of stock, making a very simple capitalization.
A strong working capital position was shown by the company as of December 31, 1928, current assets
amounting to $15,857,328 and including $8,599,823 cash, call loans and government securities, compared with
current liabilities of $2,714,917. Fixed capital totalled $29,596,433 after liberal write-offs for depreciation.
Earnings of the company have expanded steadily since 1924, net income of $5,077,758 in 1928 comparing with
only $638,170 for the 1924 year. Last year’s earnings were equivalent to $3.81 per share on 1,333,572 shares against
$3.56 on 650,000 shares in 1927. The first quarter showing this year was excellent, continuing the sharp increase
made in 1928 and indications point to earnings in the neighborhood of $5.00 or $6.00 for the full year. The following
table records the growth made during this period:
Year
1924
1925
1926
1927
1928

................................... ......... $
.................................................
.................................................
..................................................
..................................................

Sales
2,275,119
6,253,071
9,941,633
12,938,558
22,163,480

Net Income
$ 638,170
2,561,664
2,981,929
2,313,431
5,077,758

Another evidence of the progress of Independent Oil and Gas is found in the recent dividend record, the rate
having been increased twice in the past six months from $1.00 a share to $1.50 in October, 1928, and again in
January this year to the present rate of $2.00. This showing is all the more impressive when it is realized that
Independent Oil and Gas Company was practically the only large oil company to advance its dividend during
this period. With the present average price of crude petroleum about 22 cents a barrel higher than at this time
last year, with the advancing prices in gasoline and with the constructive efforts now being made towards curtail­
ment of production and control of future over-production, as well as the proximity of the period of greatest oil
and gasoline consumption, prospects for a continuation of the earnings shown in the first quarter appear good. If
such earnings continue, stockholders might reasonably expect a further increase in dividends.

Listed on New York Stock Exchange
Price Range on Date of Printing
Opening
36^8

High
37

Low
363d?

Close
37

Mark C. Steinberg & Company
M e m b e r s , N ew Y o r k , C h ica g o a n d S t . L o u is S to c k E x ch an ge s
C h ica g o B oard o f T r a d e — N ew Y o r k C o t t o n E x ch an ge
A s so c ia te M e m b e r s N ew Y o r k C u rb M a r k e t

GArfield 4600

MEZZANINE — BOATMEN’ S BANK BUILDING
ST. LOUIS

GArfield 4600

W E D O N O T G U A R A N T E E O R A S S U M E A N Y R E S P O N S IB IL IT Y FO R T H E IN F O R M A T IO N O R F IG U R E S
G IV E N A B O V E , B U T H A V E O B T A IN E D T H E M F R O M S O U R C E S W H IC H W E B E L IE V E R E L IA B L E .

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

W E M A IN T A IN A D E P A R T M E N T E X C L U S IV E L Y F O R T H E P U R C H A SE A N D SA L E O F
L IB E R T Y B O N D S A N D U N IT E D S T A T E S G O V E R N M E N T O B L IG A T IO N S

Attractive investment Suggestions
FOR M A Y FUNDS
The bonds and preferred stocks listed below have been selected to meet the needs of the discriminating
investor. W e believe that the diversity of type, plus the wide range in yield afforded by these issues, will
enable you to place your idle funds advantageously.

PUBLIC UTILITY, INDUSTRIAL, REAL ESTATE AND FOREIGN BONDS
Rate
Southern Pacific Railway, Convertible Debenture...................................
Southern Railway, Development and General......... ...... ...........................
Utilities Power & Light Co., Debenture, with warrant..... ...................
Pennsylvania Railroad, Secured......................................................................
American International Corp., Convertible Debenture...........................
Chile Copper, Debenture...................................................................................
North American Edison, Debenture “ B”............................ .......................
Fred Medart Manufacturing Co., First Mortgage.................................. .
Fulton Finance Co., Collateral Trust Notes..............................................
National Bond & Investment, Secured Notes......... .......................... ........
Belgium, Government of, External..............................................................
Hyde Park M. E. Church of Cincinnati, Ohio, First Mortgage Serial

..
..
..
..
..

5 %
6
5

%
%
634%
53 4 %
.. 5 %
.. 5 3 4 %
.. 5 y %
.. 6 %
.. 6 %
. 6y%
.. 634%

Maturity
1934
1956
1959
1936
1949
1947
1963
1938
1932
1935-6
1949
1938

Approximate
Yield
4.:77%
5.02%
5.12%
5.13%
5.18%
5.36%
5.45%
5.90%
6.00%
6.10-6.15%
6.15%
6.25%

MUNICIPAL BONDS
Buffalo, City of, New York..................................................
Detroit, City of, Michigan...................................................
St. Louis, City of, Missouri, Water Revenue...............
Gary, City of, Indiana....... ....................................................
Cleveland, City of, Ohio........................................................
San Antonio, City of, Texas...............................................
Los Angeles, City of, California................................ .......
State of Arkansas....................................................................
Asheville, City of, North Carolina...................................
Chicago, City of, Illinois, Tax Anticipation Warrants.

- 43 4%
- 4 34%
-

434%

.. 42 4%
.. 6 %
-

43 4%

..
..
..
..

5
5
5
6

%
%
%
%

1930-49
1940-52
1939-49
1935-38
1938
1936-65
1932
1936-62
1941-62
1930

4.19-4.21%
4.25%
4.30%
4.40%
4.40%
4.50%
4.60%
4.75%
4.80%
5.60%

CUMULATIVE PREFERRED STOCKS

Consolidated Gas Co. of New York, PreferredElectric Bond & Share, Preferred...........................
Philadelphia Co., Preferred.........................................
American Locomotive, Preferred............................ .
Bethlehem Steel Corp., Preferred............................ .
Electric Investors, Inc., Preferred..........................
Prentice-Hall, Inc., Conv. Preferred........................
New England Power Association, Preferred....... .
Commonwealth Utilities, Preferred, with warrant.
Missouri, Kansas & Texas, Preferred....................
A. S. Aloe Co., Preferred.......................................... .
Bulova Watch Co., Convertible Preferred..............

..
..
..
..
..
..
..
..
..
..
.

Rate
$5
$6
$3
7%
7%
$6
$3
6%
$6.50
7%
7%
$3.50

Price
Mkt.
ti
tt
a
tt
tt
tt
u
a
a
a
a

Approximate
Yield
5.03%
5.66%
5.70%
5.91%
5.93%
6.06%
6.12%
6.18%
6.50%
6.60%
6.69%
7.14%

All offerings subject to prior sale and change in price.
Write for detailed circulars on any of these issues or ask to have one of our representatives call.

Mark C. Steinberg & Company
M e m b e r s N ew Y o r k , C h ica g o a n d S t. L o u is S to ck E x ch an ge s
C h ica g o B oard o f T r a d e — N ew Y o r k C o t t o n E x ch an ge
A s so c ia te M e m b e r s N ew Y o r k C u rb M a r k e t

GArfield 4600

MEZZANINE — BOATMEN’ S BANK BUILDING
ST. LOUIS

GArfield 4600

W e do not guarantee the information and statistics in this pamphlet, but have obtained them from sources deemed reliable


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

May, 1929

G u m b el

M id - C o n t i n e n t B

Is

Assistant

77

anker

Trust

Officer N e w Orleans Bank

Investment Suggestions—

At the animal meeting of the board
of directors of the Interstate Trust
and Banking Company of New Orleans,
Irving Gumbel was elected an assist­
ant trust officer.
Mr. Gumbel became connected with
the Interstate Trust and Banking Com-

Lexington Telephone Co. (K y .) 6 % 1st Mtg.
Utilities Power and Light Corp. 5% Deb.
Eastern Utilities Investing Corp. 5% Deb.
Lexington Telephone Co. (K y.) 5^2% Notes
Commonwealth Telephone Co. 5% Notes

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IR V IN G G U M B E L

H o lt Is N e w

Treasurer o f

M issouri Bankers
R. W. Holt, president of the Heaton
Bank of Craig, Missouri, has been
elected treasurer of the Missouri Bank­
ers Association, following the resigna­
tion of E. S. Van Horne, of St. Joseph,
who has accepted the presidency of
the Continental State Bank of Lin­
coln, Nebraska.

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

506 Olive St.
St. Louis, Mo.

oA Convenient
Investment for Bankers

to Yield

|

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Collateral Trust Convertible 6% Coupon Bonds
(City State Bank, Chicago, Trustee)
One to five year maturities

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pany in 1924, and since that time has
been connected with the credit depart­
ment, commercial paper department
and trust department, up to his elec­
tion as assistant trust officer on April
19, 1929.
Mr. Gumbel received his education
at Phillips Exeter Academy and at
Harvard University. During t h e
World War he enlisted in the French
Army and served as an ambulance
driver. He was decorated with the
Croix de Guerre at Soissons in 1918.
After the close of the war he was en­
gaged in the cotton business abroad
and on returning to the United States
entered the investment field in which
he remained up to the time of his con­
nection with the Interstate Trust and
Banking Company.
He will specialize on personal trust
work in his new position.

99%
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208 S. La Salle St.
Chicago, 111.

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E q u it a b le B u ild in g
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EQUITABLE BOND and MORTGAGE CO.
Chicago, 111.

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D a te ...........................................................
Please send copy of circular, Trust Indenture and details of convertible
feature of Washington Securities, Inc. Collateral Trust Convertible
6%
Coupon Bonds.

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78

M id - C o n t i n e n t B a n k e r

A L O N G LA SALLE STREET
By JVm. H . Maas, Chicago, Vice-President, The Mid-Continent Banker

Alden H. Little, former St. Louisan
and now executive vice-president of
the Investment Bankers Association
with headquarters in Chicago, cele­
brated the twenty-fifth anniversary of
his wedding last month. He spent
most of the winter in a large long
swing over the country in company
with President Wilbur, of the I. B. A.,
visiting members and groups of the
association.
Patterson-Copeland & Kendall, pro­
gressive young security house with o f­
fices in the Continental Illinois Bank

Building, have made plans for expand­
ing to the St. Louis territory. Several
additional salesmen will be added to
their staff to cover that section.
Illinois bankers just naturally lead
in every civic movement for their home
towns. It seems to be a habit to
draft bankers for the job of mayor,
as witness the long and notable record
of E. E. Crabtree, of Jacksonville, of
Walter Crawford, of West Frankfort.
His Honor, Charles W. Boyden, of
Sheffield, and Lord Mayor Floyd Condit, of Beardstown, are also notable

May, 1929
examples of what can be done in a
city hall in addition to running a bank.
Someday, we are going to try and find
a way to bring in to Chicago one o f
these Illinois mayors to occupy our
City Hall. We believe it would be a
‘ ‘ Noble Experiment. ’ ’
Golf courses are now being trimmed
up at certain Illinois towns for use of
visiting bankers this month. These
include Galesburg, Sheffield, Batavia,
Beardstown, etc. “ But you must at­
tend the business sessions at your
group meetings,” says Martin Graettinger.
Edwin G. Foreman, popular vicepresident of the Foreman Banks and
one of the hardest working bankers in
the Loop, took a few days off last
month and hied away with his family
to Biloxi. The brief rest was by way
of preparing for a strenuous program
for the balance of this year. In addi­
tion to drawing his usual allotment of
group meetings and bank conventions
for 1929, there is the big job of mov­
ing to do later in the summer. The
beautiful new Foreman Building is
gradually nearing completion and in
addition to the space which the bank
will occupy, a splendid list of appli­
cants are already lined up for tenancy
in the structure at 33 North La Salle
Street.
Basil I. Peterson has gone to work
for Walter Head and the State Bank.
This addition to the commercial bank­
ing division of the bank is bound to
strengthen the growing list of coun­
try bank correspondents.

N e w Or l e a n s , second port in
Am erica, bespeaks the breadth
and the stability of the South’s
industrial and agricultural de­
velopment.

institution.
Millions of dol­
lars yearly are placed in them
by banks and insurance com­
panies because of their combined
safety and yield.

Investments in the South and
the South’s belief in itself are
responsible.

They may be had in denomina­
tions of $500 upward and in
maturities of from one to ten
years.

The South offers security
doubly and trebly sufficient to
protect investments she seeks.
The South offers attractive
interest return to insure her
needs being met.
These investments are avail­
able in the form of first mort­
gage Gold Bonds issued by this

Have you investigated this
form of Southern investment?
Particularly if you are seek­
ing safety for your funds, we
believe you will find these
bonds very desirable. Write us
for descriptive literature and
detailed information.
Ask for Circular

H. 5.

Twenty-Fourth Year—Never a Loss to a Client

M ortgage G2
Securities Co.
tH ew Orleans « S a in t JbouisiD

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

Uncle Sam just won’t let Charles
Gates Dawes sit at his desk in the
bank more than a few days at a time.
Shortly after he retired as vice-presi­
dent of these United States on March
4tli, the Central Trust Company folks
reelected him chairman of the board.
Just about that time, a call came for
him to work out a financial budget for
Santo Domingo. As everyone knows,
he had just landed in that little coun­
try, settled down to do that job, took
a couple of puffs at his famous under­
slung pipe, when the Court of St.
James job was offered him. He even
missed “ moving day” on April 22nd
when the combined forces of the Cen­
tral Trust and Bank of America open­
ed for business in the new home at
208 South La Salle Street.
Despite the many jokes of the col­
lege grads going in to the bond busi­
ness, a recent analysis by Warren Piper,
Northwestern alumnus, proves that this
is not the true situation. He found
that of 7,000 Chicago alumni listed in
the alumni directory of Chicago, ap_

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proximately 4,000 appeared in the clas­
sified business section. Of this number
1,017, nearly 25 per cent were lawyers;
929 were dentists and 922 physicians.
Only 135 were listed as dealing in se­
curities. Bankers totaled 79.

Struâlural Steel in Bank
Buildings

Probably no other financial city in
the world can boast of such an array of
successes among its bankers who came
from humble origin as the city of Chi­
cago. Melvin Traylor, born in Ken­
tucky, never rode on a railroad train
until he was twenty years old. Craig
Hazlewood, born in a little town in New
York state, started his banking career
as a bank messenger, later advertising
manager, and today occupies the high
place of president of the American
Bankers Association.
George a n d
Arthur Reynolds came from Panora, la.
Eugene Stevens from Minnesota. James
R. Leavell was born in Fulton, Mo.
Walter Head taught a little country
school in Missouri. Fred Cuscaden
came from the alfalfa country of Ne­
braska. And so on, all up and dov n
La Salle Street. College boys leaving
the campus next month had better hitch
up their sox with garters and wear a hat
if they contemplate entering the fi­
nancial world.

convenient to the employes as well as
the public. It must be attractive and
generally useful to that public. The
floor above, whether used for bank or
rented office space, must be designed
so as to be most useful and at the
time have the least waste space. To
achieve this result requires study by
the architect with careful cooperation
on the part of the bank representative.
The modern bank workshop has be­
come a large room unobstructed, as
nearly as possible, by columns. To ac­

Attention

of our readers is called

to the Illinois Group Meeting Section
appearing elsewhere in this issue. It
is expected that the eleven Illinois
Groups will have an average attendance
of approximately 300 bank officers, di­
rectors and employes. I f the mid-win­
ter meeting of the association in Clncago, with almost 1,100 present, and the
recent meeting of the American Bankers
Association, commercial banking divi­
sion, with an attendance of 1200 in Chi­
cago, are indications of the desire on the
part of bankers to secure more infor­
mation, the Group Meetings will have
to put up Standing Room Only signs.

Charles Sigler P rom oted b y
Central U nion Trust
Charles F. Sigler has been appointed
assistant vice-president of the Cen­
tral Union Trust Company of New
York. Mr. Sigler has been connected
with the company since 1906. He was
formerly assistant secretary, receiving
the appointment in 1920.
Mr. Sigler is a graduate of Lafay­
ette College, Easton, Pennsylvania,
class 1904.
Let us then stand by the Constitu­
tion as it is, and by our country as it
is, one, united, and entire; let it be a
truth engraven on our hearts; let it be
borne on the flag under which we rally
country, one constitution, one destiny.
—Webster.

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

(C o n tin u e d fro m page 2 1 )

complish this result, long spans of
steel members are necessary to carry
the floor and column loads above this
space. If another material were used,
it would be practically impossible to
hide the massive frame and the pur­
pose of the long span would be de­
feated. The long spans are supported
on columns of the least possible size
to give the spaciousness that is re­
quired actually as well as in appear­
ance.
In layout of the office part of the
buifding, it is obvious that the ar­
rangement giving the most usable or
rental space to the same gross area is
the best. This condition is produced
by long spans or large panels and least
possible area occupied by columns.
Steel because of its great strength

A NATIONAL CITY
MAN CAN HELP YOU

...w h e n you r custom ers
w a n t to in v e s t
Many o f your customers naturally expect you
to have at your fingertips a host of investment
suggestions to aid them in putting their sur­
plus funds to work. If you are not in position
immediately to make such suggestions, all
you need do is telephone The National City
Company’s nearest branch office. Here a man
experienced in sound investments will gladly
help you solve the problem. T ou should be
able easily to meet your customers’ needs
from our widely diversified investment list.

The N ational City Company
National City Bank Building, New 1 ork
Offices in more than 50 leading cities throughout the world
BONDS

*■

SHORT

TERM

NOTES

'

ACCEPTANCES

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N ew York Stock Exchange
St. Louis Stock Exchange
NewYorkCurb (A ssociate)

C
V&

l d h e im ,

P latt & Co.

Investment Securities
MERCHANTS-LACLEDE
B U ILD IN G
C E N T R A L 8400

F O U R T H A N D O L IV E

A. B. Leach&Co., Inc.
Underwriters and Distributors
o f Investment Securities

•

Government
Municipal
Public Utility
Industrial

Security Building, St. Louis
SAN FRANCISCO

NEW YORK

A . G . E d w a r d s & S ons
STOCKS, BONDS AND GRAIN
¿M em b ers

New York Stock Exchange
St. Louis Stock Exchange
Chicago Stock Exchange
Chicago Board of Trade

410-41Z Olive Street, St* Louis


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

MAIN

3380

meets these conditions most success­
fully.
When building construction begins,
its owners are sometimes concerned
only with the first cost of the struc­
ture. This should concern them, but
not to the exclusion of all other cost
items. From the time of full concep­
tion of the building, the renting agents
will be busy leasing space. Perhaps
the new owners are paying rent else­
where. The time until these new of­
fices may be occupied has, therefore,
a real financial value.
A steel frame building can be con­
structed more rapidly than any other.
It is not subject to the delays o f cold
weather. There is no waiting for it
to gather strength; it is immediately
ready for service. It permits of great
speed by allied trades where they are
properly scheduled. It can be built
equally well in winter and summer.
The structural steel building will,
therefore, save interest on the money
invested and will yield earlier rent re­
turns because of the shorter construc­
tion period involved.
When the building is complete, what
is its value ? I f one were buying a
building of uncertain age or first cost,
it would be valued at a price equal to
its capitalized income. This is the
true value of any building. It is worth
no more than its earnings show.
RECENT survey of office build­
ings shows that a profitable net
income may be expected for a period
of about 28 years. Beyond this age,
the net income decreases until finally
it will pay only the interest and taxes
on the land value. The building is now
obsolete and its only value is its sal­
vage to the wreckers.
Notice that obsolescence refers to
the economic end of the structure. It
may be in good physical repair. Phy­
sical decay we call depreciation.
To keep a bank building from be­
coming obsolete, its rental value must
be maintained at and beyond its crit­
ical age. This may be accomplished
in several ways:
1. Direct increase of the area on the
same ground area by adding stories.
2. Enlarging the building by using
adjacent property, permitting the re­
taining of valuable tenants desiring
increased area on one floor.
3. Changing the type of the build­
ing so as to accommodate other types of
tenants.
4. Remodeling so as to provide ad­
ditional stores at higher rents.
5. Finally, demolish and clear the
site for a larger and finer structure.
The rearrangement of the various
members of a building frame is most

A

Private W ire Connections to Principal Cities

CHICAGO

M ay, 1929

a n k e r

May, 1929

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easily accomplished in a steel struc­
ture because it is built up of pieces
that can again be separated from their
positions. We say the frame is artic­
ulated. Also, it is a comparatively
simple matter to build or add strength
to a steel member.

S illllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllH IH IIIIIIIIIIIIIIIIIIIIIIIIIIIIIH IM lim iM llllllllllM IIIIIIIU IIIIIIM H IIllllllH llllllllllllH M Itt

ANY buildings have been saved
from obsolescence by one or the
other of these schemes. Six stories
are being added to the Advertisers’
Building in Chicago to save it from
the wrecker. Probably the most strik­
ing case of remodeling is that of the
First National Bank Building in Chi­
cago. Here not less than three build­
ings have been changed into one. The
masonry of the lower part of the out­
side walls has been changed to be uni­
form in appearance. Corridors have
been brought into alignment. New
banks of elevators have been added.
The purpose of it all was to increase
the bank’s public room. This great
work room now extends through three
buildings and has entrances on three
streets. It was necessary to remove
columns supporting tremendous loads
and to substitute new ones at other
locations. This bank was able to ex­
pand its working area tremendously
and still maintain the appearance of
this space as though it had been built
in one unit. Only a steel frame per­
mits such great rearrangements and
the substitution of members under
large loads.
In building a bank structure, con­
siderable thought should be given to
the future. Every banker expects his
business to expand. Can the bank
room be expanded? I f the business
should outgrow the possibilities of the
present location, can the building be
accommodated to other occupancies?
Build with structural steel for strength
and security.

to our Chicago office where he will continue to super­
vise our Southwest territory, and the appointment of

w

M unicipal B on d D epartm ent
R. H. Bergren, formerly manager
o f the Chicago office of R. M. Grant
& Company, has become associated
with the municipal bond department
of H. M. Byllesby & Co, it is an­
nounced by J. G. Sheldon, manager of
that department. Mr. Bergren is
widely known in municipal bond cir­
cles, having been active on La Salle
Street for nineteen years.
There are at the bottom but two pos­
sible religions—that which rises in the
moral nature o f man, and which takes
shape in moral commandments, and that
which grows out of the observation of
the material energies which operate in
the external universe.—Froude.

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

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i

MR. H E N R Y T . D U N N

M

Bergren W ith H . M . B yllesby

. e are pleased to announce the transfer of

M R. JO H N W . D IE T Z

as manager of our St. Louis office
-

|

M R . G . F. ABRELL

MR. J. W . KUHLM AN

M R . W IL L A R D W . H A LL

M R . F. M O R ELL R U G t

M R . W . W . SEIB ER T

have become associated with us in our
retail sales department.

G. L. Oh rstro m 6 Co.
44 ,
Street
New York

Liberty Central Bank Bldg.
St. Louis

231 South La Salle Street
Chicago
:

Minneapolis
Lot Angeles

Milwaukee
San Francisco

Kansas City

Grand Rapid*
Philadelphia

Defcwit
Boston

.................................................................. ............................................. ........................ ..................miimmmmiifiiffmirmimiimmmmr

W ANTED
A Chicago Investment Securities House, han­
dling a general line of Public Utility, Railroad,
Foreign and Industrial Bonds, including their
own originations desires representation in the fol­
lowing cities and adjoining territory:—
M IL W A U K E E
R A C IN E -K E N O S H A
J A N E S V IL L E -B E L O IT
M A D IS O N
W AUSAU
L A CRO SSE
S U P E R IO R
E A U C L A IR E
GREEN B AY
F O N D D U L A C -O S H K O S H
M A N IT O W O C
SHEBOYGAN
Exceptional opportunity for men qualified by
character, enthusiasm and ability to develop into
executive positions with a progressive, well-estab­
lished financial house.
W rite in confidence to

ALBERT FRANK & C O M P A N Y
eAdvertising
134 South La Salle Street

C H IC A G O

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OLIVE STREET NOTES
By James J. W engert
................................................................................................................................................................................................................................................................................................... m i n i

C. F. Cooley, Jr., has been appointed now completed, and the firm now oc­
advertising manager of Mark C. Stein­ cupies practically the entire third floor
berg & Company. Mr. Cooley was of the building. Among the improve­
formerly with the Missouri State Life ments are a new director’s room, fin­
Insurance Company.
ished in French Walnut, a new con­
Enlargements to the quarters of ference room, and two new private of­
Stifel, Nicolaus & Co. in the Boatmen’s fices. A special feature is a complete­
Bank Building which have been going ly equipped kitchen and dining room.
forward for the past three months are Another unusual feature is a private

M a y, 1929

elevator from the firm’s offices to the
lobby and vault floor of the Boatmen’s
Bank Building.
G. Alex Hope, of the Oliver J. An­
derson & Co., has been elected presi­
dent of the Downtown Lions’ Club
for the ensuing year.
Edward D. Jones & Company have
doubled the amount of office space
which is being occupied by the firm
in the Boatmen’s Bank Building, and
four new men have been added to the
sales force. Frank Keough, Fred Shu­
maker and Wm. Griesdieck have been
added to the city sales force, and Wm.
Floreth has been added to the sales
force for Southern Illinois. Emmett
Byrne is a new addition to the trading
department. One of the features of
the enlarged offices is a specially de­
signed switchboard whereby direct
phone connections with thirty banks
and dealers are obtained simply by
moying a small lever. Both incoming
and outgoing calls may be handled
through this switchboard without dial­
ing or calling a number.
Richards & Company have an­
nounced that Julian S. Polak is now
associated with the St. Louis office of
the firm.

Standard Oil m illio n s a r e g r o w i n g g r e a te r
e v e r y y e a r . A s s e t s o v e r F o u r B illio n D o l ­
la rs.
A c c u m u la t e d s u r p lu s e s o v e r O n e
B illio n D o lla r s . Y o u h a v e b a c k o f y o u r
in v e s tm e n t th e w e a lt h o f S t a n d a r d O il
w h e n y o u h o ld th e c o m p o s it e o f 16 3
S h a r e s o f th e S t o c k s o f 31 S t a n d a r d O i l
C o m p a n ie s .

T

ru stee

S

t a n d a r d

O

il s r a r e s

D’Oench, Duhme i Co., i„c.


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Federal Reserve Bank of St. Louis

8

315 North Seventh Street
St. Louis

Reinholdt i Co.
8

Boatmen’s Bank Building
St. Louis

Mark C. Steinberg & Co. have an­
nounced that H. Harriss Long is now
associated with the firm as manager of
the trading department.
Reports have been heard to the ef­
fect that a large Chicago investment
banking house is contemplating open­
ing a new bank in St. Louis. Still an­
other report indicates that large Cal­
ifornia banking interests are contem­
plating the very same thing.
Gene Erwin has joined the sales staff
of the bond department of the Lafay­
ette-South Side Bank and Trust Com­
pany.
Taussig, Day, Fairbank & Co., Inc.,
have announced the removal of their
offices from the Merchants Laclede
Building to 740 Boatmen’s Bank Build­
ing.
Chester J. Dillon has joined the staff
of the St. Louis office of George M.
Forman & Company.
Lorenzo E. Anderson & Co. have an­
nounced that James B. Bergs is now
associated with their organization.
Louis I. Muckerman has joined the
sales organization of Hawes & Com­
pany, Inc.

May, 1929

Bandit P ro o f Equipment
Inspires Confidence
(C o n tin u e d fro m page 16 )

folded flour sack, into which the cash­
ier, without hesitancy, immediately
placed all the money in his cage, the
bandit backing out and into a waiting
automobile.
Another hold-up in the outlying dis­
trict of Detroit was somewhat similar.
The bullet-proof window was divided
in the center, the bottom part opening
in. This bandit carried a “ jimmy”
hooked on the inside of the armpit of
his coat. He approached the window
with the jimmy in one hand, a gun in
the other. It took only a split second
to insert the jimmy between the glass,
and with an upward wrench the bottom
glass fell in and the gun covered the
astonished cashier.
I wish to make clear that any wicket
that opens is not bandit proof. These,
fellows are smart; if you do not think
so, have patience; your turn will prob­
ably come.
Bank guards in strategic locations,
protected behind steel enclosures, with
or without signal systems, are but
partially effective. A bank in Indiana
on April 12th, was robbed of $10,000,
the cashier forced to carry the money
to the waiting automobile. The bank
guard could not shoot for fear of
wounding the cashier. April 3rd, a
bandit presented a note to a cashier
in a Detroit bank, a gun in his coat
pocket, pointing to the cashier, he ob­
tained about $2,000, notwithstanding
the guard was signaled and acknowl­
edged same, he could not pick out the
bandit from others in the lobby. Just
more evidence that the enclosing of
the entire fixture, window and door
openings that will protect the cages
and entire work space against intru­
sion and gun fire from the outside, is
the only sure method against hold­
ups. When you stop to think of the
hold-ups of Denver and Los Angeles
banks recently by women, it is just
more evidence of how easy it is to
rob a bank; the get away is the only
problem. The method of presenting
a written demand to the cashier is be­
ing used more and more. This fellow
is called a note bandit.
My thought is that banks would do
well to give such installations serious
thought when contemplating improve­
ments. This installation can be ar­
ranged in your present fixtures for one
window or more. High powered auto­
mobiles and good roads are proving
advantageous to this method of ban­
ditry. When the premises are equip­

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Federal Reserve Bank of St. Louis

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a n k e r

B.
Glenn Gulledge, assistant cashier
of the Marion Trust and Savings Bank,
discovered that jurors had nothing to
do from adjournment time in the after­
noon until bedtime. He found they
were not allowed to read the news­
papers, and had little with which to
amuse themselves, so as soon as he was
released he purchased checkers and
checker boards and other games. He
also provided extra mirrors and a new
supply of towels. All have been do­
nated for the use of the jurors of the
county.

ped with a one hundred per cent ban­
dit and bullet-proof i n s t a l l a t i o n ,
against daylight hold-ups, a discount
of twenty per cent is granted, provided
a standard form of burglary and rob­
bery policy is carried. This discount
can not be granted on blanket bonds.

Banker D onates Checkers
for Jurors
Williamson County, Illinois, jurors
locked up overnight can play checkers
to pass the time away, as the result
of a Marion banker’s having been
forced to serve upon a petit jury for
one week.

Many men mistake custom for truth.

S a in t L o u is

cAnnounces
the formation o f the

to

ta k e

tiv it ie s

over
of

M ortg a g e

th e

th e
L oan

b u s in e s s

B ond

and

ac­

D e p a rtm e n t,

D e p a rtm e n t,

and

S p e c ia l T a x D e p a r tm e n t o f th e T r u s t
C om pany.

T h e e n t i r e p a id in c a p i t a l s t o c k o f $ 1 ,0 0 0 ,0 0 0 .0 0 is
ow ned by
The

th e M is s is s ip p i V a lle y T r u s t C o m p a n y .

C om pany

w ill

tra n sa ct

a g e n e r a l in v e s tm e n t

b u s i n e s s , a n d w i l l b e l o c a t e d in t h e p r e s e n t q u a r t e r s
o f th e B o n d D e p a r tm e n t o f th e M is s is s ip p i V a lle y
T ru st C om pany.

84

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W. H. YOUNG

B

M ay, 1929

a n k e r

8c

BROS., Inc.

ST . L O U IS , M O .

K A N S A S C IT Y , M O .

705 Olive St.

Commerce Bldg.


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

Dealers in
Diversified Investment Securities

BRANCH OFFICES
Joplin, Mo.
202 Joplin Nat’l Bk. Bldg.

St. Joseph, Mo.
312 Corby Bldg.

Jefferson City, Mo.
Central Trust Bldg.

Marshall, Mo.
Bk. of Saline Bldg.

Columbia, Mo.
Exchange Nat’l Bk. Bldg.

Sedalia, Mo.
Bothwell Hotel

Moberly, Mo.
518 W est Reed St.

Lexington, Mo.
Traders Bk. Bldg.

Springfield, Mo.
1028 Landers Bldg.

Wichita, Kan.
505 First Nat’l Bk. Bldg.

Topeka, Kan.
209 Kresge Bldg.

Newton, Kan.
107 W est 5th

Hutchinson, Kan.
Morgan Bldg.

Salina, Kan.
Nat’l Bk. of Am. Bldg.
Kansas City, Kan.
601 Huron Bldg.

M a y , 1929

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............................ ............... ........ mi...... ................................miiiiiiiiiii...... ......................llllllllllllllimillllimiiiilllllliiiiiiiiiiiiiiiiiiiiii'iii'H*'""'"'..... iiiiiiiiiiii

CURRENT QUOTATIONS
On a representative list of H IG H G R A D E

R A IL R O A D ,

P U B L IC

U T I L I T Y , IN D U S T R IA L , C A N A D I A N and F O R E IG N B O N D S
Furnished by CAMP, T H O R N E & CO., Inc., 29 South La Salle Street, Chicago

Security
Bid
Alabama 'Pr. Co., 5s, 1951................ 100%
Alberta, (Canada), 4% s, 1956........... 91%
Amer. Chain Co., 6s, 1933................ 97%
American Radiator, 4%s, 1 9 4 7 .... 97%
Amer. Roll. Mills Co., 5s, 1 9 4 8 .... 953%
Amer. Smelt. & Refg. Co., 5s, 1947.101%
Amer. Sugar Refg. Co., 6s, 1937...103%
Amer. Tel. & Tel., 4%s, 1933........ 983%
Amer. Tel. & Tel. Co., 5s, 1960____103%
Amer. Tobacco Co., 4s, 1951.......... 87
Anaconda Cop. Min. Co., 6s, 1953..104%
Appalachian Elec. Pr. Co., 5s, 1956 98%
Appalachian Pr. Co., 5s, 1941........... 99%
Argentine, 6s, 1958............................ 99%
Associated Oil Co., 6s, 1935............. 101%
Atch. Top. & S. Fe Ry., 4%s, 1962. 98
Atl. Coast Line R. R., 4s, 1 9 5 2 .... 91%
Australia, 5s, 1955...............
95%
Austrian, 7s, 1943............................... 102%
Baden Consol. Mun., 7s, 1951.......... 96%
Bald. Loco. Wks., 5s, 1940............. 106%
B. & O. R. R „ Ss, 2000................ 102%
B. & O. R. R., 4%s, 1933................ 98
Batavian Pet. Co., 4%s, 1942.......... 91%
Bavaria, Germany, 6%s, 1945......... 94%
Belgium, 6s, 1955.............................. 99%
Bell Tel. Co., Canada, 5s, 1955........101
Bell Tel. Co., Penn., 5s, 1948..........103%
Berlin (Germany), 6%s, 1950.......... 95%
Berlin È. E. & Und. Rys., 6%s, 1956 90%
Beth. Steel Corp., 5s, 1936................. 99%
Bolivia, Rep. of, 7s, 1969...............
88%
Boston Cons. Gas Co., 5s, 1 9 4 7 .... 100%
Brazil, 6%s, 1957.............................. 94%
Bremen (Germany), 7s, 1935..........100
Brisbane, Australia, 5s, 1957............ 91%
British Columbia, 4% s, 1951.............. 91%
Brooklyn Borough Gas, 5s, 1967.. 100%
Brooklyn Edison, 5s, 1949................103%
Brooklyn Union Gas, 6s, 1947........117%
Buenos Aires, 6%s, 1955................. 101%
Buenos Aires, Prov., 7s, 1952........... 99%
Buffalo Gen. Elec. Co., 5s, 19 39... 102%
Bush Terminal Bldg., 5s, 1960.......... 99%
Butte Electric Pr. Co., 5s, 1 9 5 1 .... 102%
Calif. G. & E. Co., 5s, 1937................ 99%
Calif. Pet. Corp., 5%s, 1938............. 101%
Canada, 4%s, 1936............................ 97%
Canad. Nat’l Ry. Co., 4% s, 1 9 5 7 ... 94%
Canad. Pacific Rys., 4%s, 1 9 4 6 .... 98%
Carolina Pr. & Lt. Co., 5s, 1 9 5 6 .... 99%
Cauca Valley, Dept, of, 7s, 1948. .. . 89%
Cent, of Ga. Ry,, 5s, 1945................. 100%
Cent. 111. Lt. Co., 5s, 1943............100
Cent. 111. Pub. Serv., 5s, 1956.......... 97%
Cent. New Eng. Ry., 4s, 1961.......... 79%
Cent. Pacific Ry., 5s, 1960................. 101%
Cent. Pr. & Lt. Co., 5s, 1956.......... 96%
C. & O. Ry. Co., 5s, 1939.................. 102%
C. B. & Q. R. R „ 4s, 1949.................. 91%
Chgo. Mem. & Gulf R. R., 5s, 1940. 96
C. Mil. & St. P. Ry. Co., 4s, 1989. .. 83%
C. & Nor. Wes. Ry., 4%s, 2 0 3 7 .... 94%
C. R. I. & P. R. R., 4s, 1934............ 94%
Chgo. Union Stat., 4%s, 1963.......... 97%
Chile, 6s, 1960.................................... 92%
Chile Mtge. Bank of, 6%s, 1 9 5 7 .... 97%
Cincinn. St. Ry., 5%s, 1952.............. 98
Cities Service Co., 5s, 1966.............. 88%
C. C. C. & St. L. R. R „ 4s, 1 9 93... 88%
C. C. C. & St. L. R. R., 4% s, 1977.. 93
C. C. C. & St. L. R. R., 5s, 1963____100%
Clev. Union Term., 5s, 1973............. 103%
Cologne (Germany), 6%s, 1 9 5 0 .... 94%
Colombia, Rep. of, 6s, 1961............ 87%
Colorado Pr. Co., 5s, 1 9 5 3 ... ......... 99
Columbia Gas & Elec., 5s, 1 9 5 2 .... 99%
Columbus Ry. Pr. & Lt., 4% s, 1957 92%
Commonwealth Ed. Co., 4%s, 1956. 96%
Connecticut Lt. & Pr. Co. 4% s, 1956 99%
Cons. Gas, N. Y „ 5%s, 1945............ 105%
Consumers Pr. Co., 5s, 1952......... .102%
Copenhagen (Denmark), 5s, 1952.. 94%
Costa Rica, 7s, 1951.................. » . . . 93%
Cuba Railroad, 5s, 1952.................... 89%
Cuba, Rep. of, 5%s, 1953................. 100%
Cudahy, Pack. Co., 5s, 1946............ 99%
Cumberland Co. Pr. & Lt. 4% s 1956 91%
Czechoslovak, 8s, 1 9 5 1 . . . . . . . . . . . . 110%


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

Asked
101
93
98
95%
95%
101%
103%
98%
103%
87%
104%
98%
100
99%
101%
98%
92
95%
102%
96%
106%
102%
98%
91%
95
99%
101%
103%
95%
91
100
88%
101
943%
100%
91%
93
100%
103%
118
101%
100
103
100
102%
100
101%
97%
94%
98%
99%
89%
100%
100%
97%
80
101%
96%
103
92
96%
83%
94%
94%
97%
93
97%
98%
88%
88%
93%
1003%
101%
95
88
99%
99%
93
97
99%
106
103
95
94
90
100%
99%
91%
110%

Security
Bid
Danish Con. Mun. Loan, 5%s, 1955 98%
Delaware & Hudson Co., 4s, 1943.. 92%
Denmark, 5%s, 1955........................ 99%
Denmark, King of, 6s, 1942............. 103%
Denver G. & E. Lt. Co., 5s, 19 51... 99%
Det. City Gas Co., 5s, 1950.............. 99%
Detroit Edison Co., 5s, 1949............. 102%
Dominican Republic, 5%s, 1 9 4 2 .... 95%
Duquesne Lt. Co., 4%s, 1967.......... 99%
Dutch East Indies, 6s, 1947............. 102%
Edison Elec. Ilium., 4%s, 1 9 3 0 .... 98%
Elec. Pr. Corp. (Germany) 6%s 1950 93%
Finland, Rep. of, 6s, 1 9 4 5 ................ 94%
Fla. Pr. & Lt. Co., 1st. 5s, 1954----- 91%
Ft. Worth Pr. & Lt. Co., 5s, 1931. . 99%
France, 7s, 1949................................... 107%
General Elec. Co., 3%s, 1942.......... 945%
Gen. Motors Acc. Corp., 5s, 1930.. 98%
General Pet. Corp., 5s, 1940............. 100%
Ga. & Alabama Ry., 5s, 1945.......... 85%
Georgia P. Co., 5s, 1967.................... 97%
Georgia Ry. & El. Co., 5s, 1932___ 100
German, 7s, 1949................................. 105%
German Cen. Agr. Bank, 7s, 1950.. 97%
German Con. Mun. Loan, 7s, 1947.. 96%
German Ge. Elec. Co., 6%s, 1940..119%
Goodyear T. & R., 5s, 1957.............. 94%
Grand Trunk West. Ry., 6s, 1936.. 103%
Grt. Nor. Ry. Co., 4%s, 1976.......... 95%
Great Western Pr. Co., 5s, 1946. .. .100%
Greek Gov’t, 7s, 1964........................ 97%
Gulf Oil Corp., Pa., 5s, 1947............. 100%
Haiti, Republic, 6s, 1952.................. 98%
Hamburg, Germany, 6s, 1946.......... 95%
Hocking Valley R. R., 4% s, 1999.. 96%
Hudson County Gas Co., 5s, 1949..101%
Humble Oil & Refg. Co. 5%s, 1932.101%
Hungary, Kingdom, 7%s, 1 9 4 4 ....1 0 0 %
Hungary Municipal, 7%s, 1 9 4 5 .... 92%
Idaho Power Co., 5s, 1947................ 99%
111. Bell Tel. Co., 5s, 1956................. 102%
111. Cent. Ry., 4%s, 1966.................. 98%
111. Pr. & Lt. Co., 5s, 1956.............. 933%
111. Steel Co., 4% s, 1940...................... 97%
Ind. Mich. Elec. Co., 5s, 1957........... 100%
Ind. Pr. & Lt. Co., 5s, 1957............ 98%
Inland Steel Co., 4%s, 1978............ 91%
Internat. Paper Co., 5s, 1947.......... 93%
Internat’l Ry. C. A., 6%s, 1 9 4 7 .... 95%
Interstate Pr. Co., 5s, 1957.............. 92%
Iowa Pub. Serv. Co., 5s, 1957........ 93%
Italy, 7s, 1951.................................... 96%
Japanese Gov’t, 6% s, 1954............... 100%
K. C. Pr. & Lt. Co., 5s, 1952............. 102%
K. C. Southern Ry. Co., 5s, 1950.» 98
K. C. Term. Ry. Co., 4s, 1960.......... 87%
Kansas Pr. Co., 5s, 1947.................. 94%
Laclede Gas Lt. Co., 5s, 1934........... 100%
Lehigh Valley R. R., 4%s, 2 0 0 3 ... 94%
Ligg. & Myers Tob. Co., 5s, 1951..102%
Lorillard Co., 5s, 1951...................... 84%
L. & N. R. R. Co., 4s, 1940.............. 93%
Louisville G. & E. Co., 5s, 1952____102%
Louisville Lighting Co., 5s, 1953...100
Lyons, City of, 6s, 1934...........
99%
Maine Cent. R. R., 4%s, 1935.......... 94%
Manitoba Power Co., 5%s, 19 51... 98%
Mass. Gas Co., 4%s, 1931................ 98%
Mich. Cent. R. R, Co., 5s, 1 9 3 1 .... 99%
Mid. Steel & Ord. Co., 5s, 1936_____99%
Milwaukee Gas Lt. Co., 4%s, 1967. 96%
Minnesota Pr. & Lt. Co., 5s, 1955.. 91%
Minn., St. P. & S. S. M. Ry. 4s 1938 86%
Miss. Riv. Pr. Co., 5s, 1951............ 99%
Mo., Kans. & T. R. R „ 4s, 1990. .. . 84%
Mo. Pac. R. R „ 5s, 1 9 7 7 .......... . . .
98%
Montana Power Co., 5s, 1943......... 100%
Montevideo (Uruguay), 7s, 1 9 52... 100%
Montreal (Canada), 4%s, 1 9 4 6 .... 92%
Morris & Co., 4%s, 1939.................. 86%
Mutual Fuel Gas Co., 5s, 1947......... 102%
Narragansett Co., 5s, 1957.............. 99%
National Press Bldg., 5%s, 19 5 0 ... 95%
National Tube Co., 5s, 1952............. 101%
Netherlands, 6s, 1954........................ 99%
New Brunswick (Can.), 4%s, 1936. 96%
New Eng. G. & E. Co., 5s, 1947___ 93%
New Eng. Tel. & Tel. Co. 4%s, 1961 99%

Asked
99
92%
100
103%
100
100
102%
96
99%
102%
983%
94
95
913%
99%
107%
943%
98%
100%
86
973%
100%
105%
97%
96%
120
94%
103%
95%
100%
98
101
99
95%
97
102
101%
100%
93
100
103
983%
94
97%
100%
98%
91%
93%
95%
92%
94
96%
100%
102%
98%
88
94%
101
95
102%
84%
94
102%
100%
100
94%
99
98%
99%
99%
96%
92
87
100
84%
98%
101
101
93%
87
103
100
96%
101%
99%
97%
93%
99%

Security
Bid
Newfoundland, 5%s, 1942..................101%
N. Orleans Term. Co., 4s, 1 9 5 3 .... 89%
New South Wales, 5s, 1958............... 91%
N. Y. Cent. Lines, 4%s, 2013.......... 98%
New York Edison Co., 5s, 19 4 4 ....1 0 2 %
New York Pr. & Lt. Co., 4%s, 1967 933%
N. Y. Tel. Co., 4%s, 1939................ 98%
Niagara Falls Pr. Co., 5s, 1932........ 102%
Nor. Ind. Pub. Service Co. 5s, 1966.100%
Nor. Pac. Ry. Co., 4s, 1997............... 89%
Nor. States Pr. Co., 5s, 1941.......... 100%
Norway, Kingdom of, 5%s, 1965...100%
Nuremburg, City of, 6s, 1952........... 86%
Ohio Pr. Co., 5s, 1952...................... 100
Ohio Riv. Edison Co., 5s, 1 9 5 1 .... 99%
Ontario, Prov. of, 4%s, 1931........... 96%
Ontario Power Co., 5s, 1943............ 99%
Oreg. Wash. R. R, &Nav. Co. 4s, 1961 87%
Oslo, Norway, 5%s, 1946................. 95%
Pacif. Coast Pr. Co., 5s, 1940.......... 99%
Pacif. Gas & Elec. Co., 5s, 1942____101%
Pacif. Tel. & Tel. Co., 5s, 1952......... 103%
Panama, S ^s, 1953..............................101%
Penn. Central Lt. & Pr., 4%s, 1977. 92%
Penn. R. R. Co., 5s, 1964....................102
Penn., Ohio & Det. R. R „ 4%s, 1977 95%
Penn. Pr. & Lt. Co., 5s, 1953............101
Peoples Gas Lt. & Coke Co. 5s 1947.102%
Pere Marquette Ry., 5s, 1956.......... 103%
Peru, 6s, 1960..................................... 87%
Phila. Elec. Co. (P a.), 4%s, 1967.. 98
Pillsbury Flour Mills Co., 6s, 1943.104%
Potomac Edison Co., 5s, 1956......... 97
Pressed Steel Car Co., 5s, 1933......... 95%
Prussia (Germany), 6%s, 1951......... 87%
Pub. Service Elec. & Gas, 4%s, 1967 97%
Queensland (Australia), 7s, 1941..108%
Republic Iron & Steel, 5s, 1 9 4 0 ....1 0 1 %
Rhine-West. Elec. Pr., 7s, 1950____103%
Rio Grande Do Sul, 7s, 1966............. 96%
Rio de Janeiro, 8s, 1946...................... 105%
Rotterdam, (Holland), 6s, 1 9 6 4 .... 103%
St. L., Ir. Mt. & So. Ry., 5s, 1931. . 99%
St. Paul Gas Lt. Co., 5s, 1944............100%
St.'PaulUnion Stk. Yds. Co. 5s, 1946 99
Salvador, 8s, 1 9 4 8 ... .........................109%
San Joaquin Lt. & Pr., 5s, 1 9 5 7 ....1 0 0
San Paulo, City, 8s, 1952....................112%
San Paulo, State, 8s, 1936..................105%
Saskatchewan, Prov., 5s, 1943......... 98%
Sauda Falls Co., 5s, 1955.................... 101%
Saxon Pub. Wks., 7s, 1945............... 98%
Shawinigan Wtr. & Pr. Co. 4% s 1967 92%
Shell Union Oil, 5s, 1947.................. 97%
Sherman Hotel Co., 5%s, 1930........ 99
Siemens & Halske, A. G., 7s, 1936. . 99%
Sinclair Pipe, 5s, 1942....................... 93%
Sixty-one Broadway Bldg. 5%s, 1950 99%
Solvay Amer. Inv., 5s, 1942............. 96%
Southern Bell Tel. &Tel. Co. 5s, 1941.102%
Southern Calif. Edison Co. 5s, 1951.101%
So. Pac. Ry., 4%s, 1968..................... 94%
Southern Ry. Co., 4s, 1956............... 88%
Southwest Bell Tel., 5s, 1954.
.102%
Stand. Oil Co. N. Y „ 4%s, 1 9 51... 96%
Stand. Mill. Co., 5%s, 1945................ 99%
Sun Oil Co., 5%s, 1939.............
100%
Swedish Gov’ t, 5%s, 1954.................. 103%
Swift & Co., 5s, 1944.......................... 101%
Swiss Gov’t, 5%s, 1946........................ 102%
Texas Pr. & Lt. Co., 5s, 1937........... 99%
Toronto, Canada, 5s, 1934................. 97%
Union Oil Co., Calif., 5s, 1935.......... 98%
Union Pac. R. R., 4s, 1947.................. 93%
U. K. Gt. Br., 5%s, 1937.................... 102%
United Steel Wks., 6%s, 1951.......... 86
Urugray, 6s, i9 6 0 .............................. 98%
Utah Lt. & Tr. Co., 5s, 1944.............. 95%
Va. Ry. & Pr. Co., 5s, 1934............... 98%
Wabash Ry., 5s, 1976.......................... 100%
Wash. Wtr. Pr. Co., 5s, 1939............ 101%
West Penn. Pr. Co., 5s, 1946............ 101%
Western Electric Co., 5s, 1944.......... 102%
Western Md. Ry., 4s, 1952................ 79%
Western Pacif. R. R., 5s, 1946.......... 98%
Western Union Tel. Co., 4%s, 1950. 97%
Wheeling Steel Corp., 4%s, 19 53... 86%
Winnipeg (Canada), 4%s, 1 9 4 6 ...» 91%
Yadkin River Pr. Co., 5s, 1941........ 100
Youngstown Sheet & Tube 5s, 1978.100%

Asked
102%
90
91%
99
103
93%
99
102%
100%
89%
100%
100%
86%
100%
99%
97%
100
875%
95%
100
101%
103%
101%
92%
102%
95%
101%
103
103%
87%
98%
105
97%
95%
88
98
108%
101%
103%
97
105%
103%
100
100%
99%
110
100%
112%
105%
100
101%
98%
93
98
99%
100
93%
99%
96%
102%
101%
94%
88%
103
96%
100
100%
104
102
103
100
98%
98%
93%
103
86%
98%
95%
98%
100%
101%
102
102%
79%
98%
98
87
93
100%
100%

86

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B

May, 1929

a n k e r

St. Louis Stock Exchange

Listed
Bonds
W e are prepared to
furnish accurate quota­
tions, and prompt execu­
tions of buying or selling
orders for listed bonds.
The experience acquired
d u r i n g our fifty-two
years in the investment
field is also at the dis­
posal of our clients.

Francis, Bro.
& Co.
Established 1877

Boatmen’ s Nat’l Bank ....................
First National Bank ..........................
Lafayette-South Side B a n k ..............
Merchants-Laclede Nat’ l ..................
Nat’l Bank of Commerce..................
State National Bank..........................
Nat’l Bk. Commerce, C -D ................
Franklin-American Trust ................
Mercantile Trust ................................
Mississippi Valley T r u s t ...................
St. Louis Union T r u s t ......................
Mercantile Trust, C -D ......................
A. S. Aloe Co., P fd ............................
Alligator, Com ....................................
Baer, Sternberg & Cohen, C o m .__
Bentley Chain Stores, C om ................
Michigan-Davis ..................................
Boyd-Welsh Shoe ..............................
Brown Shoe, P fd ................................
Brown Shoe, Com ..............................
Bruce (E. L .), Com ............................
Burkart Mfg., P ref..............................
Burkart Mfg., Com ............................
Champion Shoe Mach., P fd ..............
Chicago Ry. Equip., C om ................
Chicago Ry. Equip., P fd .............
Coca-Cola Bottling, S ec....................
Consolidated Lead & Zinc, “ A ” . . . .
Corno Mills C o..................................
Elder Mfg., “ A ” ..................................
Elder Mfg., Com ................................
Ely & Walker Dry Goods, 2d P fd ..
Ely & Walker Dry Goods, C o m ....
Fred Medart Mfg., Com ....................
Fulton Iron Works, P fd ....................
Fulton Iron Works, Com ..................
Globe-Democrat, P fd ..........................
Granite Bi-Metallic ........................ .
Hamilton-Brown S h o e ......................
Hussman Ligonier, Com ....................
Huttig S. & D., C om ..........................
Hydraulic Press Brick, P fd ..............
Hydraulic Press Brick, Com ..........
International Shoe, P fd ....................
International Shoe, Com ..................
Johansen Shoe ....................................
Johnson-S. & S. Shoe........................
Knapp Monarch, P fd ..........................
Knapp Monarch, C om ........................
Laclede-Christy Clay Prod., P fd ....
Laclede Gas Light, P fd ......................
Laclede Steel C o..................................
Landis Machine, C om ........ ................
Mahoney-Ryan A ir c r a ft ....................
Moloney Electric “ A ” ......................
Mo. Portland C em en t........................
Marathon Shoe, Com..........................
Nat. Bear. Metals, P fd ......................
Nat. Bear. Metals, Com ....................
Nat. Candy, 1st P fd ..........................
Nat. Candy, Com .......... .....................
Nicholas-Beazley ............ , . .................
Pedigo-Weber Shoe ..........................
Rice-Stix Dry Goods, 1st P fd ..........
Rice-Stix Dry Goods, 2nd P fd ..........
Rice-Stix Dry Goods, C om ..............
Scruggs-V.-B. D. G., 1st P fd............
Scruggs-V.-B. D. G., 2nd Com ........
Scruggs-V.-B. D. G., Com ................
Scullin Steel, P ref..............................
Securities Inv., C om ..........................
SielofT Packing, Com ..........................
Skouras Bros. “ A ” ............................
Southern Acid & Sulphur, Com ........
Southwestern Bell Tel., P fd ..............
Stix, Baer & Fuller, C om ..................
St. Louis Amusement “ A ” ................
St. Louis Car, P fd ..............................
St. Louis Car, Com ............................
St. Louis Public Serv., Pfd. “ A ” . . .
St. Louis Pub. Serv., C om ................
Steinberg Drug Stores................ :. .
Wagner Electric, Com ......................
Wagner Electric, Com., Buyer 60. .

Par
Value
100
100
100
100
100
100
100
100
100
100
100
100
100
No Par
No Par
No Par
No Par
No Par
100
100
No Par
No Par
No Par
100
25
25
No Par

A p r il 20
S a le P r ic e
200

176
239

30
3754

5^2
10 2
4 7p ;

100
100

No Par

100

25
No Par

28J4

100
No Par
100
10

25
No Par
No Par

100
100
100

No
No
No
No
No

Par
Par
Par
Par
Par

100
100
100

26
1754

64 y 2

100
9954

25
5
No Par
25
25

2054
57^4
44 54

No Par

9754

100
100

N o Par
5
N o Par

20

N o Par

21H

25
Par
Par
Par
Par
Par

1754

100
100

100
100

No
No
No
No
No

34

100

No Par
No Par

3354

100
10

No Par
N o Par
No Par
15

4454

M o n th ’s R a n g e P r ic e
H ig h
Low
200
200
372
385
370
370
345
345
17 5
183
2 10
2 10
175
176
23054
239
585
585
381
387
523
530
580
585
10 3 5 4
10 4
27
2554
754
754
30
32
14
31
37J4
3854
118
119 5 4
39
43
43
44
16
1754
754
10 2
10554
7
8
17
18
48
3954
1354
115 4
19 1
2 OO54
72
75
30
33
86
86
28%
2854
25
2354
5 54
115
59c
1654
22
1754
68
354
106
63
3854
55
39
23
100
9954
4954
5154
1754
5454
43
41
10 1
77
105
21
1954
29
105
96
2054
75
75
17 %
33
30
1654
4254
46
117 5 4
3254
20
103
22
77
1954
5254
4254
44 54

6 Y2
116
65c
1854
27
19
70
354
10754
69
3854
58
3954
24
100
IOO 54
5354
60

2 15 4

5854
4754
42
I O I 54
99 H

105
24
215 4
30
106
98
22
7554
75
183/4
36
34
1654
4254
51
120
35
20
103
23
79
215 4
5254
4854
4954

Sa le s
fo r
M o n th
26
367
10
27
848
35
67
13
60
146
57
42
170
2035
130
1065
669
180
59
78 1
303
176
419
128
103
160
22 6 1
5607
133
224
160
68
3323
775
255
48
775
975
3335
290
707
230
325
114 4 1
250
170
304
160
12 2
209
12954
30 51
6775
6612
3026
130
200
1 4 17
135
4436
4256
240
105
54
6326
80
70
883
3 16 1
650
75
100
12 2
567
953
150
80
71
10854
1458
310
15828
600

Investment Securities

R IC H A R D S & C O M P A N Y
Fourth & Olive Streets
ST. L O U IS
Kennedy Building
TULSA


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

CHestnut 0922

Security Bldg., St. Louis
P R IV A T E
M embers :
N ew York Stock Exchange
Chicago Stock Exchange
St. Louis Stock Exchange

W IR E S
N ew Y o r k Offices:
37 ¡Vail Street
250 Park Avenue

W. Arthur Stickney, Resident Partner

87

M id - C o n t i n e n t B a n k e r

M ay, 1929

.'i m i m m i i m i i i i m im ii iiiiii iiiii iiiii iiiim iiiim i iiiim iiiim i iim im iiim m m m iiim m i iiiii iiiii ij j

Municipal Bonds

G. H. W ALKER & CO.
BONDS

nI
Safetyo f Principal
All Maturities

[

Government,

.

Municipal,
Public Utility,

All Denominations
TaxExemption

Railway,
Corporation

\

to 6.00 per cent
Direct private wires to all principal markets

«

|

service in buying and selling listed bonds.

JVrite for offerings and Bank Discounts
J liiiiiim iim im iiiiiiiiiiiim iin iiiiiiiii

enable us to render prompt and efficient

3 keJ6 mIncorporated
ckeU1910
J8 o m l(it

M e m b e rs N e w

Y o r k , St. L o u is and

C h ica g o S to ck E x c h a n g e s

MUNICIPAL BONDS
B R O A D W A Y and LOCUST

N a tio n a l B an k o f C o m m e rc e B ld g.
St. L o u is
C H IC A G O

NEW

St. Louis, Mo.

YORK

D E T R O IT

|

IIIIIIIIIIIIIIIIIIIIIIIIIIIIIHIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIMMIIIIIIIIIIIIIIIIIHIIIIIIIIIIIIIIIIIIIIIIIIIII*^

N. L. ROGERS
COMPANY

P u b lic

U tility

an d

S e c u r itie s

(INCORPORATED)

T h is c la s s o f s e c u r it ie s o f f e r s o p p o r t u n it ie s f o r in ­
v e s tm e n t in a g r o u p w h ic h h a s s h o w n tr e m e n d o u s
d e v e lo p m e n t o v e r th e p a s t d e c a d e .

T h e c o n s o lid a ­

tio n s ta k in g p la c e , a n d c o n t in u e d in c r e a s e in th e

INVESTMENT
SECURITIES

c o n s u m p t io n o f e le c tr ic a l e n e r g y g iv e e v e r y in d i­
c a t io n o f th e c o n t in u e d p r o s p e r it y f o r th e u tility
g rou p .

Send fo r our list of
utility recommendations

H.LRUPPERT & COMPANY
(IN C O R P O R A T E D )

MEMBER S ST .LOUIS ST OCK EXCHANGE

I N V E S T M E N T S E CURI TI ES

Underwriters and
D istrib u to rs o f
®o n d s and Stocks

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Federal Reserve Bank of St. Louis

PE O R IA
DECATUR
DANVILLE

4 C E
MAIN 1082

PINE

STREET

ST. L O U I S

MAIN 1082

cDirect cPrirvate Wires to cAll ^Principal <5Markets

M id - C o n t i n e n t B a n k e r

To Our
Banker Friends
V ° U ^ave received a number of letters from us recommending
A the purchase of Cities Service Company Common Stock, which
has more than doubled in market price since we first recommended
it a year ago.
You may have thought it unusual for a House like ours, specializ­
ing in high grade investment bonds, to recommend a Common
Stock so persistently and frequently as we have in the past. The
reason for this seeming departure from our regular and established
policy lies in the fact that C ities Service Company Common Stock
is, in our opinion, an unusual investment security'with a high yield
and very unusual promise of materially increasing in market price.
A few of the outstanding reasons why we departed from our policy
of recommending only high grade bonds and why we urge the
purchase of this Common Stock are the following:
Cities Service Company is one of the two largest companies in the
United States from the standpoint of number of security holders;
one of the three largest companies in point of number of shares of
stock outstanding; one of the ten largest companies in point of as­
sets; is second largest producer of natural gas; second largest oil
producer; and is one of the leading electric light and" power
companies.
The foregoing reasons and many others of equal significance make
this stock one of the most attractive from an investment stand­
point. The Common Stock has just been split four for one and
the new stock is selling on the Exchange around $29.50 a share,
equal to SI 18.00 a share on the old stock. W e again recommend
the purchase of the new Cities Service Company Common Stock and
urge you to buy as many shares as you can.
As we are in a position to execute your order and keep you advised
at all times of developments affecting this stock, we suggest that
you have us execute your order.

TRUE SECURITIES CO,
David O. True, President

231 South La Salle Street


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Federal Reserve Bank of St. Louis

Telephone Central 6556

C H IC A G O

M a y, 1929

89

M id - C o n t i n e n t B a n k e r

May, 1929

M arket vs*
Many Small Investors Pay a Premium of From One and a
H alf to Two Points For an Active, Fluctuating Market
HERE is a big difference between
stability of market and market­
ability. A great many small investors
pay a premium of from one and a half
to two points for an active fluctuating
market, thereby getting a security that
is listed on one of the large exchanges
of the country. This listing of a se­
curity on one of the principal ex­
changes, naturally does not in any
way change the security itself, as the
exchange simply gives its members the
privilege of dealing in this particular
security on that particular exchange.
I f there are more buying orders than
there are selling orders, the security
in question naturally advances on the
market. While if there are more sell­
ing orders than there are buying or­
ders, the reverse condition arises.
There is a big list of stock and bonds
classed as high grade investment se­
curities that are not listed on any ex­
changes as they are sold strictly for
investment and after once placed they

T


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Federal Reserve Bank of St. Louis

By CARROLL S. FELTER
Robert S. Strauss & Co.

are seldom dealt in. Municipal bonds
come in under this category, such as
the issues of the city of New York,
Chicago, Los Angeles, Detroit, Pitts­
burgh and Cleveland, or the bonds of
the commonwealth in the state of New
York, Illinois, Pennsylvania and Mass­
achusetts besides the lesser obligations
of the numerous other small cities,
small towns, school districts, drain­
age districts, etc.
Naturally a great many of these secu­
rities are classed among the very high­
est type of bonds obtainable but you
do not find them listed on any ex­
changes nor having an active fluctuat­
ing market.
NOTHER type of bond that comes
into this group of investments,
is the hundreds of millions of dollars

A

_

( COMPLETE

IN V E S T M E N T

worth of first mortgage real estate
bonds. This latter group of securities
are sold strictly to investors for in­
vestment. Therefore the first requi­
site that a buyer looks to is the ques­
tion of security of principal; second,
of yield. Both are high in this type
of security, and because there is no
opportunity, so to speak, of an ad­
vance in price in this type of bonds,
the investor naturally receives a much
more satisfactory yield than he would
on a listed bond of the same ratio of
safety and as the majority of real es­
tate bonds only are tax exempt for
the two per cent nominal tax, and the
income tax of several states by vir­
tue of refund by the borrower they
yield a much more satisfactory yield
than a municipal bond that has other
tax free privileges. They, therefore,
are splendidly suited to the small in­
vestor who is not burdened with sur­
tax. A result of these facts was
shown in a recent survey o f the M id -

SERVICE

)

Fletcher
American Company
Indiana's Largest Investment House

A F F I L I A T E D

W I T H

T h e F le tc h e r A m e r ic a n N a t i o n a l B a n k
Largest B an \ in Indiana
i
I
DETROIT

I N D I A N A P O L I S

LOUISVILLE

90

M id - C o n t i n e n t B a n k e r

May, 1929
C o n tin e n t B a n k e r fr o m

AMERICAN YVETTE CO., INC.
A C H A IN SY S T E M

Preference and Common Stocks listed on Chicago Stock Exchange.
We recommend the purchase of these securities for yield and profit.
Complete information will be furnished on request.

E. H. OTTMAN AND COMPANY, Inc.
Inrestment Securities

Bankers Building

CH ICAGO

th ree
ou t
n en t
tio n ,
sold

th ou sa n d

a rep ort o f

q u e stio n n a ire s

sen t

to th e b a n k s in th e M id -C o n ti­
te r r ito r y . I n a n sw er to th e q u e s­
“ O f th e to t a l a m ou n t o f b o n d s
to y o u r cu s tom ers in th e p a st

y e a r, w h a t w a s th e p e r ce n ta g e o f th e
fo llo w in g c la s s e s ? ” G o v e rn m e n t b o n d s
led b y 29.83 p e r cent. T h is h igh p e r ­
cen ta g e w a s u n d o u b te d ly due to th e
f a c t th a t a g re a t m a n y sm a ll b a n k s
are in clin e d to re co m m e n d L ib e r t y
b o n d s o n ly b eca u se th e y d o n o t h ave
to g o th rou g h th e tr o u b le o f in v e s ti­
g a tio n . A ls o , as th e y ie ld is sm all, it
d o e s n o t m a k e a r e a l c o m p e titiv e in ­
v e stm e n t f r o m a \deld sta n d p o in t, in
co m p a ris o n w ith th e ir ow n sa vin g s

GATESWORTH
APARTMENT HOTEL
At

th e

U n io n

B o u le v a r d

E n tra n ce

to

F orest

N o th e r w o rd s , th e rea son w h y first

P ark .

St. Louis, Mo.
T h e G a t e s w o r t h a f f o r d s th e m o s t id ea l liv in g c o n d it io n s
f o r b o t h p e r m a n e n t a n d tr a n s ie n t g u e s ts .
A ccom m od a­
tio n s r a n g e f r o m H o t e l R o o m s a n d S u ite s , t o c o m p le t e ly
fu r n is h e d a n d s e r v ic e d S e v e n - R o o m A p a r t m e n t s .
T h e G a t e s w o r t h is r e a d y a n d e q u ip p e d t o s e r v e y o u f o r
a n y le n g th o f tim e f r o m a d a y t o a y e a r .

Daily Rates from $3.50.
Apartments $115.00 to $300.00 per month.


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Federal Reserve Bank of St. Louis

a ccou n ts . O f c o u rse on th e o th e r
hand, there are a g rea t m a n y bankers
w h o are n a tu r a lly m o re in te re ste d in
th e w e lfa r e o f th e ir c o m m u n ity th an
th e y a re in a n y selfish m o tiv e s, as
th e y n a tu r a lly rea liz e th a t th e g ro w th
o f th e ir b a n k is lim ite d b y th e w e a lth
o f th e c o m m u n ity th e y serve. T h e y
are t h e r e fo r e in te re ste d p r in c ip a lly in
seein g th a t th e su rp lu s w e a lth o f th e ir
c o m m u n ity is p r o p e r ly in v e s te d w h ere
it is sa fe an d w ill b rin g in a reason ­
able in com e.
T h is s u rv e y sh ow s th a t re a l estate
b o n d s w ere se co n d in p o p u la r it y w ith
25.57 p e r c e n t ; in d u stria ls ca m e th ird
w ith 16.30 p e r c e n t ; p u b lic u tilitie s
fo u r t h w ith 12.54 p e r c e n t; m u n icip a ls
11.84 p e r c e n t; fo r e ig n s 1.75 p e r c e n t;
ra ils 1.25 p e r cen t an d jo in t s to ck la n d
b a n k at .92 p e r cent. U n d o u b te d ly ,
th e rea son w h y rea l esta te b o n d s m a de
su ch a w o n d e r fu l s h o w in g in th is r e ­
p o r t in th e M id -C o n tin e n t te r r ito r y ,
is b eca u se th is ty p e o f s e c u rity has
g o n e th rou g h tw o w a rs an d th ree
p a n ic s an d s to o d th e a c id test o f tim e.
A ls o , th e y ie ld is m u ch g re a te r f o r
the same ra tio o f secu rity th an is
fo u n d in th e o th e r ty p es.

I

m o r tg a g e rea l esta te b o n d s a re so
p o p u la r a m o n g th e in v e s tin g p u b lic
th rou g h th e ir b a n k s in th e M id -C o n ­
tin en t te r r ito r y , is on a cco u n t o f
th e ir s ta b ilit y o f m a rk e t in c o m p a ri­
son w ith m a rk e ta b ility , to g e th e r w ith
th e s a t is fa c t o r y y ie ld th a t is o b ta in ­
a b le in th is ty p e o f b on d .
F o r a n y s e c u r ity th a t is w e ll se­
cu red an d has an a ttra ctive in com e o r
y ie ld , it sh ou ld b e p o s s ib le to a lw a ys
lo c a t e a m a rk et, eith er o v e r th e co u n ­
te r o r th ro u g h th e h ou se o f issue.
T h is m a rk et is n o t an a c tiv e flu ctu ­
a tin g m a rk et, as th e b u y e r has to b e
lo c a te d f o r th e s e c u rity in q u estion .
T h is m a y ta k e tw o o r th ree d a y s o r
in f a c t , a w eek o r sev era l w eek s. T he
sam e w o u ld b e tru e, i f y o u o w n th e

May, 1929
most valuable piece of property in the
city of Chicago and you wanted to
raise money on this property either
through sale or through loan. It
would undoubtedly take you several
weeks to consummate a trade or loan.
This would not in any way reflect
against the property itself or the se­
curity in question. On the other hand,
take the situation in the listed bond
market during the recent high call
money market. As this type of list­
ed bonds were not only bought from
an investment standpoint, but also
from a speculative standpoint, as soon
as there was an advance in the money
market, this type of bonds declined
so that the investors who had bought
them strictly from an investment
standpoint, and who were forced to
sell at this time, found themselves con­
fronted with a substantial loss from
their purchase price. At the same
time, they had only received a small
yield during the time they held the
bond in their possession, as they had
paid, as stated above, from one and
a half to two points for the market­
ability feature of their investment.
This decline in the market did not
reflect against the security as the
bonds in question, in the majority of
cases, were just as good as when they
were put out. But the decline in the
market was due to high money rates.
These fluctuations in money rates do
not effect to such an extent the se­
curities that are bought strictly from
an investment standpoint and are not
actively dealt in on any exchange.
It usually takes from six months to a
year or a drastic change in the gen­
eral money market to be reflected in
the first mortgage real estate bond
field.

T THEREFORE

the writer claims
that for the average small inves­
tor, it is far better for him to receive
higher yield, looking naturally first to
security then to sacrifice yield for
marketability, that he does not expect
to use except in an emergency. And
as this emergency very often arises
during a financial depression or tight
money market, he may find that his
purchases of marketability under such
conditions, work to his detriment as
he may be forced to take a material
loss of principal in selling, on account
of general money conditions.
Another interesting feature in con­
nection with first mortgage real estate
bonds, is the fact that this type of
security is practically the only bond
on the market that is finished financ­
ing. In other words, you take a fif­
teen year loan on a modern office build­
ing today, that is just being built, the
building is figured to last from forty


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Federal Reserve Bank of St. Louis

M id - C o n t i n e n t B

an ker

The New Morrison, when completed, will be the world’s
largest and tallest hotel— 45 stories high, with 3,400 rooms

Chicago’s

M O R R ISO N
H OTEL
Corner Madison and Clark Streets
Tallest Hotel in the World, 46 Stories High
Closest in the City to Stores, Offices, Theaters and Railroad

1944 Rooms, $2.50 Up
— all outside, with bath, running ice water, telephone, bed-head lamp, and
Servidor. A housekeeper on every floor. All guests enjoy garage
privileges.
JVrite or wire for reservations

TERRACE GARDEN, MORRISON HOTEL

91

92

M id -C o n t i n e n t B a n k e r

How to bring
o c e a n

to your
With American industry daily taking a more
active part in foreign trade, you never know

M ay, 1929
to sixty years, while the loan is usual­
ly about fifteen years. During the life
of the loan, there is no opportunity or
need for additional capital for capital
investment, but during the life of the
loan, the loan will be materially re­
duced. Public utilities, rails, or indus­
trials, by nature of their business, if
they are making a success, are going
faster than they can earn money for
capital investment so that they are
compelled to go to the public from year
to year for additional funds which in­
creases outstanding capital liability by
the sale of some form of security. In
other words, a public utility that has
outstanding ten millions today, is apt
to have outstanding fifteen or twenty
millions in the next ten years. So that
a banking house, in making this type
of loan, has to consider the ability of
the company to borrow money in the
future when funds are needed. This
is one point that the real estate bond
buyer is not confronted with as out­
standing capital liability in real estate
loans is decreased and not increased
during the life of the security he buys.
In buying securities, the investor
will do well to analyze his own situa­
tion and see whether or not it would
pay him to pay a premium for a
marketability feature or whether he
prefers a high yield with a more stable
market with the same security of his
principal.

when your customers may come to you for in­
Shawm ut In vestm en t Trust

formation about foreign banking facilities.
On such occasions you may use the Seaboard’s
Foreign Department as your own. Through it
you can investigate foreign markets, obtain
credit inform ation, open com m ercial and
travelers’ letters o f credit, make foreign collec­
tions, establish current and time deposit ac­
counts and make foreign remittances payable
in every city o f the world. Send for the Sea­
board booklet on foreign banking facilities.

The

S e a b o a rd
OF
M a in

O ffic e :


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Federal Reserve Bank of St. Louis

THE

CITY

BROAD

N a tio n a l
OF

AND

B ank

NEW YORK

BEAVER

STREETS

Show s Large Earnings
The Shawmut Bank Investment
Trust, Boston, the first investment
trust to be organized by a national
bank, has just issued its report for the
second year o f operation which re­
flects a very satisfactory result.
Total income for the year ended
February 28, 1929, on an investment
of $6,000,000 was $1,338,067.07; $365,584.20 from interest and dividends and
$972,482.87 being net gain from sale
of securities. Net earnings after in­
terest, expenses and taxes were $887,611.18, equivalent to $11.84 a share on
75,000 shares of no par value stock.
It is interesting to note in this con­
nection that this stock accompanied
the debentures and was received by
the original purchasers without cost to
them.
The trust had additional unrealized
appreciation in securities held Feb­
ruary 28, 1929, of $1,268,960, equiva­
lent to $16.92 a share. On February
28, 1929, approximately 33 per cent of
the trust assets were in cash and call
loans, 38 per cent in bonds and pre­
ferred stocks, and 28 per cent in com­
mon stocks.

May, 1929

93

M id - C o n t i n e n t B a n k e r

Examiner Smudge Meets
With the Board
(Continued from page 20)

country banking, haven’t you, Mr.
Smudge ?
Smudge: Yes; eight years.
Chairman: Well, then, I know your
report will be a fair one. But I don’t
want you to underrate our board of
directors. Take Mr. Williams, now;
he really hears a lot more than he
pretends. His deafness comes in
pretty handy sometimes, when some­
thing comes up that he doesn’t partic­
ularly care to hear. And Bently— he
appears to waste a lot of time, but as
he rambles along with his reminis­
cences, he is usually making up his
mind about something, and when the
time comes, he’s ready with his deci­
sion. Jackson, too— he doesn’t say
much, but you can’t beat his judgment
on a loan. We depend, probably more
than we realize, upon his opinion when
a new application comes up.
Smudge: Yes, I worked with a board
quite a lot like yours, myself, and I
think I have them sized up pretty well.
But I ’ve been wondering just how you
feel about that $300 annual interest
I lost you on the Griggs notes. It

seemed too bad, the way that turned
out, but there wasn’t anything I could
do.
Chairman: Oh, we ’ll fix that up all
right. W e’ll get “ J. H .” to sign up
new notes with the boys for the legal
amount, and he will carry the balance
himself. Even if he doesn’t, the $300
“ fine” will teach us to watch our
limits a little more closely. I think
“ J. H .,” at the time, thought you
were just another edition of the last
examiner we had here, and was glad
of the chance to “ show off” at your
expense.
Well, I hope to see you again, Mr.
Smudge.

M ercantile Trust
Lewis D. Dozier, Jr., president of
the Pawnee Wood Heel Company, has
been elected a member of the board of
directors of the Mercantile Trust Com­
pany, according to an announcement
by Geo. W. Wilson, president of the
Mercantile.
The late L. D. Dozier, Sr., was one
of the founders of the trust company
in 1899, being a member of the first
board of directors. The election of
his son to the board makes the third
founder’s son to be included in the

Capital, Surplus and Undivided Profills $ 5 0 ,0 0 0 ,0 0 0

ORMED by consolidation o f Security Trust &

F

Savings Bank and Los Angeles-First National
Trust and Savings Bank, combining two o f the
oldest and largest banks of Southern California.
The Security-First National is fully
equipped to do every kind of bank­
ing business, and has branches
extending from Fresno and San
Luis Obispo to the Imperial Valley.
H E N R Y M . R O B IN S O N
Chairman o f the Board


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

Only the Yeo Rotary Can
Give Absolute Proof
of Deposit

D ozier Is D irector o f

EC U R I T V -F lIÏ S T lA T IO M L
Ba n k o f Lo s An g eles

S

Y e o — Th e O rig in a l R o ta ry

J. F. S A R T O R I
President ami Chairman o f
the Executive Committee

T h e proof-ofdeposit c a r d
and identifica­
tion punch are
an e x c lu s iv e
c o p y r i g hted
feature of the
new Yeo Ro­
tary.

And this is not the only exclusive feature
of the new Yeo Rotary Victory Night De­
pository. Its rotary weighs 1000 lb., and its
cylinder walls are 3V2" thick. It provides
electrical protection for banks that are so
equipped.
Its deposit chest is dynamite
proof. It is 100% watertight, 100% crookproof from within and 100% burglar-proof
from without. In short, the new Yeo Victory
Rotary Night Depository is better, stronger,
safer. And it has no upkeep cost!
Manufactured and Installed by

Bank Vault
Inspection Co.
Samuel P. Yeo, President
Offices: 5 South 18th St., Philadelphia, Pa.
Sales Engineers in A ll Principal Cities

M ail C ou p on !
Bank Vault Inspection C o.,
5 South 18th St., Philadelphia, Pa

I

(check square for information desired)

□ Please send complete information on
the Yeo Rotary Night Depository.
□ Please quote on installation from at­
tached plans.
Name ........................
Name of Bank .........................................
Address
City

. ..
5— MCB

■ ■ V e o - T h e O rig in a l R o ta ry 1

94

M

present directorate, the others being
Festus J. Wade, Jr., son of the first
president of the company, and Oliver
J. Anderson, son of Lorenzo Anderson,
who was a vice-president of the Mer­
cantile at its inception.
Officer, Do Your Duty
Policeman: “ Judge, this man is ar­
rested for gambling and being drunk. ’ ’
Drunk: “ Your Honor, ‘ Man’s inhu­
manity to man makes countless thou­
sands mourn.’ I ’m not as debased as
Swift, as profligate as Bryon, as dis­
sipated as Poe, or as debauched as— ”
Judge: “ That will do. Thirty days;
and officer, take a list of those names
and run them in; they’re as bad as
he is. ’ ’
1

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Why Business Men
Are Failing
(Continued from page 12)

to thousands every year because hunch,
hit and miss methods, and rule of
thumb procedure are followed.
HE small business man is not
equipped, himself, to apply scien­
tific method to his various problems;
he is not a specialist in the various
lines of his business. But scientific
method must be applied if failure is
to be turned into success. The indi­
vidual business man can afford to pay
for some of the services of outside spe­
cialists himself. In the case of other

T

COOPERATION

In the days p r io r to the advent o f
steam pumping engines, the Deluge
Fire Company N o. 3 was one o f the
leading companies. It was com posed
o f fifty-two men, twenty-six to each
side o f their engine, which was drawn
and operated by hand.

N July 29, I8 6 0 the first steam fire engine was
delivered to the city o f Nashville. Before that
date the citizens had volunteered their services for the
protection, each o f the others property.
The spirit o f cooperation and unselfishness manifested
by those volunteer fire companies is the same spirit
w hich has brought Nashville from a backwoods set­
tlement to a mighty city

/1

< the spirit that surmounts

every obstacle in the path o f municipal progress. It is
the spirit w h ic h has built such institutions as the
American Banks whose more than 30,000 depositors
today twice outnumber the population o f Nashville in
1860.

LightingtheIVayi. futureProgress
This Airways Bea on, placed atop
it Building, may
ince o f 40 miles.

Such a number o f satisfied customers must mean that we
offer an exceptional banking service. May w e serve you?

æA m er ig a n

B a n ks

^ m o n e a n N a iton a l N A S H V I L L E -


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

tAmerican

National Company

(AFFI LI ATED)

1

*

Company

M ay, 1929
services he can contribute together
with other members of his association
(last year 70 trade associations spent
$15,000,000 for research work— a large
amount in the aggregate but a trifling
sum for each business man personally)
and secure the scientific answer to the
question: how to increase profits.
The sound business executive will in­
crease the application of science to
his business during the coming year.
He will plan to do what thousands of
other executives are already doing
throughout the country, namely, to set
aside a certain appropriation for re­
search work on his individual busi­
ness problems. He will realize that
scientific research is just as necessary
in his business as is advertising. He
is spending all the way from $1,000 to
$100,000 for advertising to stimulate
the sales end of his business, and he
realizes that a sum equal to at least
a small fraction of that amount is
worthwhile in stimulating and making
more efficient the other ends of his
business. He is spending hundreds or
thousands of dollars for fire insurance,
not because he expects to have a fire
but just to be safe. He will spend a
small sum for research work to be
done on his business, not perhaps be­
cause he thinks it is making less than
it could, but just to be safe. He
knows that the methods of the great
corporations are the methods of scien­
tific research and he is not going to
let himself be deprived of those meth­
ods in his own business.

Should Statements Be
Required?
(Continued from page 10)

may expect to find on the other side
of the statement, too much money owed
either in accounts payable or bank
loans, and in that case the creditors
are furnishing capital funds. An­
other important thing to know, which
an operating statement will disclose, is
the cost of doing business. Without
this information no business can safe­
ly proceed.
I have gone into detail in regard
to statements from firms and corpora­
tions, because I am so thoroughly con­
vinced of the importance of securing
auditor’s statements, not only from
the standpoint of furnishing the bank
the necessary information needed to
pass on loans, but from the standpoint
of the good it is going to do the bor­
rower. I have observed that the own­
er of a business dislikes to admit that
there is anythng wrong with his busi­
ness or the way he conducts it, but ob­
servation and experience has taught

M ay, 1929
me that many enterprises have been
saved from ultimate failure, which in
many instances would have meant loss
to the bank through the presentation
of unwelcome facts revealed by the
auditor’s operating statement. They
have been compelled to face the facts,
and when done in time, have been en­
abled to make the needed corrections
and go on to success.
In conclusion, permit me to add this
thought, a bank to measure up to its
fullest responsibility and e n d u r e
through economic changes, over which
it has no control, must adopt a sound
and thorough loan policy, and in my
judgment, the requirement of financial
statements, in the manner in which I
have attempted to outline, will do much
to further such a policy, and be the
means of helping to solve one of the
greatest problems in the conduct of a
bank, namely, that of making safe
loans.— From address before Missis­
sippi Valley Conference on commercial
bank management, Chicago, March,
1929.
___________________

provide for the expansion of facilities
contemplated in the merger plans.
The Barnett National Bank was
formed in 1877 by W. B. Barnett,
father of Bion H. Barnett and has
continued under the management of
the Barnett family since its inception.
The Florida National Bank was
founded in 1894 as the Southern Sav­
ings and Trust Company. At that
time Mr. Perry came with the bank
as secretary and treasurer, starting
his banking career in Jacksonville.
In 1905, Mr. Perry was made vicepresident, and the name of the bank
was changed to the Florida Bank and
Trust Company. In 1906, a national
charter was granted, and the name
again changed to the Florida National

Statem ent o f U nion National
o f Pittsburgh
The last statement of condition of
the Union National Bank of Pittsburgh
shows total resources in excess of $27,000,000. Capital is $2,000,000 and sur­
plus and undivided profits are in ex­
cess of $6,000,000.
Deposits are more than $26,900,000
and trust funds invested are shown at
more than $16,700,000.

and some find an additional use . . . that o f creating a
favorable public opinion toward their hank.
Y ou can make your checks say what you want the pub­

Is A n n ou n ced


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

Bank. Mr. Perry was elected presi­
dent in 1913, and under his direction
the bank has grown so rapidly that
physical expansion of quarters has
been necessary each year for the past
three years.

U 1 HK VOIR CHECKS
S A Y W H A T VOli
WANT THE PlIB 1.1C
TO THINK. Some banks use their checks as withdrawal forms alone;

M e r g e r o f Florida Banks
A merger of far-reaching effect in
Florida and the South was consum­
mated April 17 when the directors of
the Florida National and the Barnett
National Banks off Jacksonville ap­
proved a consolidation of the re­
sources and facilities of the two insti­
tutions. This merger combines the in­
terests of Jacksonville’s two oldest
banking houses and creates the largest
bank in Florida with resources of ap­
proximately $45,000,000 The name of
the new institution will be the Florida-Barnett National Bank of Jack­
sonville.
The executive officers of the new in­
stitution will be : Arthur F. Perry,
president of the Florida National
Bank, chairman of the board of the
new bank; Bion H. Barnett, chair­
man of the board of the Barnett Na­
tional Bank, chairman of the execu­
tive committee; W. R. McQuaid, pres­
ident of the Barnett National Bank,
president of the new bank.
The merger is contingent upon the
passage of an amendment to the Flor­
ida State Banking Act, which will be
introduced at the current session of
the legislature, and which provides
that a bank formed by the merger of
two or more banks in one town or
city may transact business in two
banking houses, formerly utilized by
the banks uniting. The passage of
this act is necessary to the consolida­
tion because neither o f the present
buildings is large enough to accommo­
date the combined organizations and

95

M id - C o n t i n e n t B a n k e r

lic to think about your bank . . . that yours is a hank o f
character, safety,
strength and pro­
gressiveness. For
checks are cap­
able o f saying all
these tilings—are
fully capable of
favorably reflect­

PAY
TO T M i
ORDIR. O f

D.Q.LU&S

ing the standing
o f your hank.
Checks made
o n La M o n te
N ational Safety
Paper(tlie major­
ity o f hanks in
the leading cities
o f the country use
La Monte Safety
Paper) have the

happy faculty o f presenting your hank in
its most favorable light. They convey a
proper intimation o f a hank’s standing;
are recognized by hankers and business men alike as
the standard o f comparison. And they are safe; protected
on both sides from mechanical or chemical erasure.
Send for the booklet we’ ve prepared for you. It’s
free for the asking. W e’ ve shown in it how oilier banks
have used La Monte National Safety Paper — how they
have taken advantage o f its line appearance and pleasing
colors—to achieve really distinctive checks.
Identify National Safety Paper by its wavy lines.
George La Monte & Son, 61 Broadway, New Y o rk .

LA M O N T E
N A TIO N A L S A F E TY PAPER FO R C H E C K S

96

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anker

Keenly alive to the responsibility
of its name, history and position,
the First National Bank of Chicago,
with First Union Trust and Savings
Bank, offers correspondents every
advantage which resources, experi­
ence, facilities and modem man­
agement can supply in a Chicago
banking connection.

The First N ational
Bank o f Chicago
Affiliated

™

First U nion Trust
and Savings Bank
FR AN K O. W ETM ORE

FREDERICK H . R A W SO N

H AR RY A . WHEELER

CHAIRM AN

MELVIN A . TRAYLOR

CH AIRM AN

VICE-CHAIRMAN

PRESIDENT

E D W A R D E. B R O W N

JOHN P. OLESON

CRAIG B. HAZLE W O O D

VICE-PRESIDENT

VICE-PRESIDENT

VICE-PRESIDENT

D ivision F

—

BENTLEY G. M cC L O U D
VICE-PRESIDENT

Banks and Bankers

JOHN F. HAGEY

GEO. H . D U N SCOM B

JOHN J. A N T O N

NICE-PRESIDENT

VICE-PRESIDENT

ASST. VICE-PRESIDENT

TH O M AS J. N U G E N T
ASST. VICE-PRESIDENT

LELAND L. HOBBS

E D W A R D J. JENNETT

ASSISTANT CASHIER

MELVIN H. THIES

ASSISTANT CASHIER

ASSISTANT CASHIER


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

ILLINOIS GROUP MEETING SECTION
Program fo r G rou p M eetin gs

Illinois Group Meeting Schedule

o f Illinois Bankers
Morning Session
9:00 a. m. Registration
Call to order and routine busi­

10:00
ness.
10:30 “ The Essentials of Bank Pro­
tection. ’ ’
R. C. Saunders, manager protec­
tive department, Illinois Bank­
ers Association.
11:00 “ Bank Management.’ ’
Hon. Oscar Nelson, auditor of pub­
lic accounts.
11:30 Question Box.
Under leadership of local banker.
12:15 Observation by the president
and presentation of Federation cer­
tificates.
Omar H. Wright, president, Sec­
ond National Bank, Belvidere.
12:45 Reports of committees on res­
olutions and nominations.
Election of officers.
1:00 Luncheon.
To be followed by installation of
newly elected officers.
There will be some diversion from
this in one or two of the groups where
they may provide some special features.
Group Ten will have an address on
“ Regional Clearing House Associa­
tion’ ’ by O. M. Karraker, president,
First National Bank, Harrisburg.

Williams,

M cR ee

&

C o.

D ate
M ay 13
M ay 14
M ay 15
M ay 16
M ay 17
M ay 20
M ay 21
M ay 22
M ay 23
M ay 24
M ay 28

Group N o
7
6
8
9
10
5
2
1
3
4
11

Place
Sullivan
Charleston
B eardstow n
C ollinsville
M etropolis
D w igh t
G alesburg
Sheffield
O regon
Batavia
C hicago

C CHICAGO
BATAVIA

Is

N e w St. Louis H o u s e
Williams, McRee & Co., Inc., an­
nounce the formation of a corporation
conducting a general investment bank­
ing business and financing real estate
mortgages with offices in the FranklinAmerican Trust Building, St. Louis.
The organizers of the company are
Eugene P. Williams and Henry McRee,
who are well known in the Southwest.
Mr. Williams, while with the First
National Co., St. Louis, was in direct
charge of the mortgage loan depart­
ment through which were created and
financed some of the larger buildings
both in St. Louis and throughout the
Southwest.
Mr. Williams continued actively in
the First National Co. after its organ­
ization and was a vice-president and
director of that institution until he re­
signed from the company to go into
business for himself.
Henry McRee received his invest­
ment training with the investment di­
vision of the Harris Trust and Savings
Bank in Chicago in 1910, later coming
to St. Louis as one of their local rep­
resentatives.

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

^

C

H

A

R

“d|fcUrjfcili\ ‘
\ it

L

E

S

T

O

(M etropolis
97

N

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Come to Batavia
Y ou Are Expected!


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

— a n d w e s u g g e s t th a t th e P r e s id e n t, th e
V ic e - P r e s id e n t s , th e C a s h ie rs a n d A s s is t a n t
C a s h ie rs all a tte n d th e G r o u p 4 m e e t in g —
a n d y o u m ig h t
D ir e c t o r s .
Y ou

w ill b e

even

b r in g

g e n u in e ly

th e

w e lc o m e ,

B oard

and

of

th e

fr ie n d ly d is c u s s io n o f m u tu a l p r o b le m s w ill
b e n e fit e v e r y b a n k e r p re s e n t.
B a ta v ia a w a its y o u r c o m i n g o n M a y 2 4th
w it h rea l p le a s u re — as th e se b a n k s a w a it th e
o p p o r u n it y o f s e r v in g y o u o n th a t d a y — a n d
in th e fu tu r e .

First National Bank
Established 1 8 9 1

Batavia National Bank
Organized 1 9 0 9

Batavia, Illinois

Group Four Meets at
Batavia National Bank and First National Bank
W ill Be Hosts to Group Four Bankers on May 24

HE bankers of Group Four will,
on May 24, bold their annual
meeting at Batavia in the beautiful
Fox River Valley. The meeting will
be held in the high school auditorium.
The Batavia National Bank and the
First National Bank, who are hosts for
the occasion, have the hearty support
of the whole community in extending
hospitality.
Batavia, situated 36 miles Avest of
the Chicago Loop District, was first
settled in 1834. Its present popula­
tion is 5,600 people and it is a city of
beautiful homes, fine churches and has
a school system known far and wide
for its excellent Avork.

T


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

BataA’ia is proud of her many suc­
cessful manufacturing industries, whose
output reaches into the millions and
employment is given to about 850 peo­
ple. The manufacturing interests of
this city are closely aligned with the
banks, many of the corporation heads
being directors of the banks. Rail­
roads leading into Batavia include the
Chicago & Northwestern, Chicago, Au­
rora and Elgin Electric and the C. B.
& Q.
The beautiful valley along the Fox
River extends nearly 50 miles north
and 50 miles south of Batavia.
Batavia is served by two strong
banks, the Batavia National and the

Public School, Batavia, Illinois.

First National Bank. The First Na­
tional is capitalized at $100,000 and
total resources are over $2,000,000.
Capital of the Batavia National is
$100,000 and deposits are over $1,500,000. Both are honor roll banks.
Officers of the First National are:
C. D. Newlin, president; H. N. Wade,
vice-president; B. B. Paddock, cashier;
A. V. Kelley and E. R. Nelson, as­
sistant cashiers.
Officers of the Batavia National are:
H. T. Windsor, president; N. L. John­
son and J. M. Augustine, vice-presi­
dents; W. E. Beem, cashier; W. R.
Johnson, assistant cashier.

100

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Where you can drink of

Nature’s Greatest IlealfhWalers
Am id Surroundings o f Unsurpassed
Comfort and Elegance1
Visitors to this finely appointed, luxurious hotel acclaim it
one o f the very finest resort hotels in America. Refurnished,
redecorated and equipped with unsurpassed elegance, The
Elms will appeal to the most fastidious or most critical guest.
Here you can tone up your system, regain your health with
our world famous mineral waters and baths and if you wish,
enjoy all the pleasures o f resort life, golfing, swimming,
horse-back riding, boating, tennis, etc. For reservations or
beautifully done book, fully illustrating the beauties o f The
Elms and Excelsior Springs, write, wire or phone F. F. Hagel,
Managing Director.

The Elms is only 28 miles from
Kansas City, nestling amid sur­
roundings of natural beauty,
with paved highways leading
in all directions.

O n e o f th e “W o r ld s M o s t T a m m s M i n e r a l S p r in g s T e s o r t s

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

M ay, 1929

M

W inegardner N o w W ith Stock

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r

Yards Bank, Chicago
The Stock Yards National Bank of
Chicago announces that Paul R. Wine­
gardner will be associated with them
on and after May the first.
Mr. Winegardner was with the Fed­
eral Reserve Bank of Chicago for more
than eight years, later entering the in­
vestment banking field with William
R. Compton Company, Chicago, from
which company he goes to the Stock
Yards National.
During his long service with the
Federal Reserve Bank and with W il­
liam R. Compton Company he has
made a very wide and favorable ac­
quaintanceship among bankers in the
Seventh Federal Reserve District with

Investment Counsel
for Banks
Banks th r o u g h o u t the M id d le W e s t are
c o r d ia lly in v ite d to c o n s u lt the P e o p le s
Securities Com pany at any time concerning
investments.
PAUL

R. W IN E G A R D N E R

his genial personality and ability to
understand country banking condi­
tions.
For several years he delivered many
interesting and instructive talks on
banking and investment topics before
county bankers federations, chambers
of commerce, clubs, colleges, county
farm bureaus, etc., and will again, in
his new connection, be available for
this purpose.
Mr. Winegardner will be assigned
to country bank business for the Stock
Yards National, covering a part of Il­
linois and Indiana and all of Wiscon­
sin.

W e are always glad to give facts and sta­
tistics from o u r data on the investment mar­
ket in general o r on specific b o n d issues... to
report business trends o r the con dition o f a
certain industry o r type o f business . . . to
recom m end current offerings suitable fo r re­
sale to customers o r to study the investment
needs o f an individual bank and recom m end
the issues that best m eet those needs.
Requests fo r investment counsel w ill re­
ceive the personal attention o f our officers.

PEOPLES
SECURITIES
A F F IL IA T E D

Who Wins?
Big Business M an: ‘ ‘ Can’t you
read? The sign on that door means
Private. ’ ’
Book Agent: “ I know— and I ’m
glad i t ’s there. I f there’s anything I
hate, it ’s being interrupted when I ’m
talking to a prospect.”

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Federal Reserve Bank of St. Louis

sm

COMPANY
W IT H

PEOPLES TRUST AND
SAVINGS BANK

--------------------------------OF C H IC A G O ------------------------------EARLE H. R E Y N O L D S , ^President

102

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COLLINSVILLE WELCOMES YOU


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Federal Reserve Bank of St. Louis

The Bankers o f Collinsville extend to the members o f Group Nine, a
most hearty and sincere invitation to attend the Group meeting to be
held in Collinsville on Thursday, May 16, 1929.
W hen you arrive in Collinsville, you will find a most hearty welcome
awaiting you.
Y our friends will be here to greet you and you can
talk over with them the important matters that you planned to see
them about for sometime.
W e have prepared a good and profitable program that will be o f such
interest that you wall be glad that you came and last but not least, the
Menu has not been overlooked and a good and bountiful meal will
be awaiting you including the famous “ Collinsville Cherry-pie-a-la
mode.”
The Bankers o f Collinsville also invite you to inspect their commodious
and up-to-date Bank Buildings.
W e are counting on all o f the Officers and Directors o f the member
Banks to be present on that day.
Come early and stay as long as you can as you will enjoy the hospitality
o f Collinsville.

First National Bank
Collinsville, Illinois

State Bank of Collinsville
Collinsville, Illinois

Group Niue Meets at Collinsville

First National Bank, Collinsville.

C OLLINSVILLE, a thirty minutes
drive from downtown St. Louis,
is one of the most thriving of the
suburbs of that great city. It has ten
t h o u s a n d hospitable inhabitants.
While many of these hold excellent po­
sitions in the metropolis, the city’s
own industries form the basis of sup­
port for the majority of its population.
In former years, coal mining was the
principal industry. However, in re­
cent years the establishment of lead
and zinc smelters, a large catsup and
food packing plant, a dress factory em­
ploying several hundred women, brick
yards, and a poster printing plant have
given employment to a substantial

State Bank of Collinsville.

number of people. The city has a
well-developed business community,
capable of supplying the needs of the
people, and their prosperity has been
evidenced in the large growth of the
city’s banks.
The city’s two banks, the First Na­
tional Bank and the State Bank of
Collinsville, are both housed in modern
buildings, built for their own use.
The First National occupied its new
home only a month ago, and there is
no finer building of its kind in South­
ern Illinois.
Collinsville is located on Illinois
State Highway No. 11, U. S. Highway
No. 40, running from St. Louis east

towards Indianapolis, and there is a
connecting paved road between No. 11
and No. 4 at Edwardsville, giving per­
fect paved highways, three directions.
Within a short time there will be fin­
ished a southern connection with
Routes Nos. 12 and 13.
Collinsville’s business men were
pioneers in promoting hard roads, and
one of the first pieces of state high­
way was paved near the city.
Collinsville is located just on the
brow of the Mississippi River bluffs,
overlooking the American Bottoms.
It is an ideal residence city, and is be­
ing looked upon more and more by St.
(Continued on page 105)

W ill Attend Illinois Group Meetings

PAUL A. SCHLAFLY
Chairman of Board, Union Trust Co., East
St. Louis


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

P. W. EDWARDS
A. G. Edwards & Sons, St. Louis

WALTER H. LAND
Vice-President, National Stock Yards
National Bank

103

Lombard College and Campus, Galesburg, Illinois.

Knox College and Campus, Galesburg, Illinois.

minois, was picked
out by Edward Bok, the author, as
one of the four ideal American cities,
one of the four most desirable cities in
which to live; ideal in its opportunities
for real living by men, women and chil­
dren.
This ideal American city will on May
21, 1929, extend its cordial greetings of
welcome and its wholesome hospitality
to the bankers of Group Two of the
Illinois Bankers Association, who will
convene for their annual meeting at that
time.
The visitors will find Galesburg to be
a very interesting city, constructed on a
five fold basis of Railroads, Industries,
Colleges, Agriculture and Commerce.
Constructed on this firm foundation it
has progressed and grown substantial­

G

alesburg,

ly. It was in 1837 that a group of New
Yorkers came to this part of Illinois
and founded at one and the same time,
the city of Galesburg and Knox College.
Galesburg now represents a city of
30,000 progressive inhabitants; out­
standing as a cultured community for
reason of its educational institutions,
substantial for reason of its agricul­
tural background, its commerce in the
distribution of merchandise by whole­
salers and retailers, its many diversified
industries, its strong and influential
financial institutions, and because of its
largest industry, the railroads. When
the C. B. & Q. R. R. Company laid its
first tracks and established itself in
Galesburg, in 1854, it opened the op­
portunity to make Galesburg an indus­
trial community and some of Gales­

burg’s largest and most successful man­
ufacturing industries were organized
and started then. In 1887 there was
added to Galesburg’s splendid railroad
facilities the main line of the Santa Fe
Railroad Company, extending from
Chicago to the far Southwest.
The Purington Paving Brick Com­
pany has what is said to be the largest
paving brick manufacturing plant in the
United States. Steam engines and the
famous Ross Boilers are two of the
main products manufactured by the
Frost Manufacturing Company of
Galesburg.
The Rowe Manufactur­
ing Company has the distinction o f be­
ing a producer of more farm gates
than any other city. Other manufac­
turing plants include: The Galesburg
Coulter-Disc Manufacturing Company,

ewe ‘welcome
Group Two to Galesburg
W e know you will enjoy yourself while here and profit by the busi­
ness meeting. Galesburg welcomes you.
THE DATE

Tuesday, ¿May 21st

First Galesburg National Bank
104

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

GALESBURG, ILLINOIS

8C

Trust Company

M ay, 1929
makers of coulter-discs and other agri­
cultural
implements;
the
Pioneer
Creamery Co., makers of “ Corn Belt
Butter” ; the Winslow Boiler and En­
gineering Company; the Willis Manu­
facturing Company, and the Hawkinson
Manufacturing Company.
Galesburg is well served by its four
substantial banks, having total deposits
of more than $15,721,690 and resources
of $17,954,858.65 and in addition there­
to there are listed among Galesburg’s
financial institutions four active build­
ing and loan associations.
For conventions, large or small,
Galesburg is especially well equipped.
Its convenient geographical location,
its splendid railroad facilities, and its
several paved highways leading from all
directions into Galesburg, make it very
accessible from any part. With its
spacious Armory, and its auditorium
with its splendid hotels, its fine clubs,
this “ City Surrounded by Colleges,” as
one American writer has described it,
has not only the physical equipment
needed, but a personality unusually at­
tractive and interesting to visitors.
Galesburg, the railroad center, the col­
lege city, the industrial and commercial
community, the city of beautiful homes,
fine public buildings and churches, his­
torically famous for the Lincoln-Douglas Debate, held here in 1858, progres­
sive and growing city where people en­
joy living, invites you and extends its
cordial greetings of welcome.

Cjroup Nine Meets at
Collinsville

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anker

Paul G. Brown has been elected
cashier of the First National Bank of
Sparta following the resignation of
W. F. Clendenin.
The three banks of Downers Grove,
according to their recent statements,
show an increase of over $100,000 in
deposits during the last three months.
Byron C. Thorpe, who is president
of the Berwyn Trust and Savings
Bank, Twelfth Street State Bank of
Berwyn, the Cicero Trust and Savings
Bank, and a director of the Security

National Bank of Downers Grove, has
been elected mayor of Berwyn.
A new building is being erected to
house the Commercial State Bank of
Waterloo.
The recent statement of condition
of the Peoples Trust and Savings Bank
of Chicago shows total resources in
excess of $34,200,000, deposits of over
$26,000,000 and capital of $2,500,000.
Loans are over $26,000,000 and surplus
and undivided profits are over $1,490,000.

Depositors are
the Selling Agents
of Y ou r Depositors
O ur

In the last 25 years, the total
am ount realized from the sale of live
stock shipped into the U nion Stock
Y ards and sold on the open market
was $11,750,000,000 — and the N a­
tional D ebt is on ly $17,000,000,000.

(Continued from page 103)

Louis business men who desire a resi­
dence away from the crowded centers.
Its fine schools and churches, and its
unsurpassed water supply, which comes
from deep wells at the foot of the
bluffs, add to its attractiveness.
The First National Bank of Collins­
ville has resources of more than $2,100,000, deposits of more than $1,800,000 and capital of $100,000. Sur­
plus and profits are in excess of $140,000, making it an honor roll bank.
Officers are: A. C. Gauen, president;
M. G. Peers, vice-president; W. L.
Ivaemper, cashier; E. Rosevear and J.
B. Schnieder, assistant cashiers.
The State Bank of Collinsville has
resources in excess of $1,400,000, de­
posits of more than $1,200,000, and
capital of $100,000. Officers are: W.
E. Hadley, president; Chas. Maurer,
C. A. Hartman and O. L. Lumaghi,
vice-presidents; G. G. McCormick,
cashier; Mary A. Meyer and Robert
Ittig, assistant cashiers.

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

M any thousands of this gigantic
sum w ere paid to you r clients.
W h y not handle at least this p or­
tion of you r C hicago exchange
through this bank w h ich is located in
the heart of the U nion Stock Y ards?
W e can save you time and m oney.

THE STOCKYARDS NATIONALBANK
THE STOCK YARDS TRUST & SAVINGS B A N K

of

C H IC A G O

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at Dwight

D WIGHT, Illinois, meeting place for
bankers of Group Five of the Ill­
inois Bankers Association on Monday,
May 20th, isn’t the largest city in that
part of the state, but officers of the
Bank of Dwight and the First National
Bank of that city guarantee that the
day of the group meeting will not be a
“ blue” Monday in Dwight.
John J. Doherty, vice-president of the
First National Bank of Dwight, says
that things are being planned to make it

an enjoyable occasion, and we will quote
from a recent letter from him:
“ We are accustomed to visitors. The
first distinguished guest we ever enter­
tained was the Prince of Wales in the
year 1860. This was the Prince who
later became King Edward VII, suc­
ceeding Queen Victoria. Dwight was so
wild at the time that the Prince remain­
ed with us for three weeks. At that
time, the country around Dwight
abounded in chickens, although we had

no night clubs. We have been attract­
ing visitors in one way or another ever
since.
“ Many of our visitors now stay four
weeks. They are patrons of the fa­
mous Keeley Institute which after a
period of fifty years is still performing
its services to humanity. Dr. Keeley,
the founder of the institution which
bears his name, was a genius in medi­
cine. He was recognized by his con­
temporaries in the medical profession
as a leader in general practice as well
as in the treatment of nervous diseases
and inebriety.
“ Since the establishment of the
Keeley Institute, over four hundred
thousand people have taken the treat­
ment, and in 1928, more patients came
to Dwight than in any year since 1910.
In view of the present probihition
laws, this must spell something, but we
don’t know what. At present the In­
stitute is being remodeled and new
quarters are being added to care for the
growing business. Dr. J. H. Oughton,
a son o f one of the original founders, is
now head of the organization.
“ Another institution located here, is
the United States Veterans Hospital,

I D w ight I s Expecting You I
|

Y o u ’ll be surprised at some o f the things that Dwight has
in store for those who attend the meeting o f
G roup Five, M onday, M ay 20th

i
:

___

i

___

§

‘D on’t Fail to Come
I
=
I
|
I

I

.

[

Y o u w ill h a v e an o p p o r t u n it y to v is it o u r c o m m u n it y , a n d w e w ill

h a v e an o p p o r t u n it y to s h o w y o u a rea l g o o d tim e. W e h a v e m a d e
e v e r y e ff o r t to a r r a n g e a p r o g r a m th a t w ill r e a lly p le a se y o u ; a p r o g r a m th a t w ill first im p r e s s y o u w it h its p r o fita b le n e s s — a n d th e n
a ft e r th a t, a p r o g r a m o f e n te r ta in m e n t th a t w ill m a k e y o u g e n u in e ly
g la d th a t y o u ca m e .
’

‘Bank of © w ight

|


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

hirst Bfational B an k
Dwight,

Illinois

j
§
[

j

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107
$21,000,000, capital stock of $1,350,000 and deposits of over $18,000,000.
The combined resources of the Stockyards National and the Stockyards
Trust and Savings Bank, its affiliated
institution, are $31,400,724.62. Com­
bined deposits are over $26,000,000.
The recent statement of condition of
the Central Manufacturing District
Bank of Chicago shows total re­
sources of over $13,000,000 and de­
posits in excess of $10,000,000. Capi­
tal stock is $600,000 and since the sur­
plus and undivided profits exceed the
capital, it is an honor roll bank.
A new building is to be erected for
the Lake County State Bank of Wau­
kegan.

Bank of Dwight, Dwight, Illinois

which accommodates about 250 patients.
The soldiers and sailors of all wars in
which the United States engaged, are
entitled to hospitalization here. This
hospital is in charge of Dr. Frank N.
Gordon.
“ Dwight was the life long home of
Edward Kemeys, the noted animal
sculptor. The two massive lions which
guard the entrance to the Art Institute
on Michigan Boulevard in Chicago were
carved by Mr. Kemeys.
“ Dwight is 70 miles southwest of Chi­
cago, on the Chicago & Alton and New
York Central railroads. Three state
roads intersect Dwight, giving ingress
and egress at six points of the compass.
The most distant point in Group Five
is less than two hours by auto. It is an
important grain center. More than a
million bushels of grain a year are ship­
ped from here.
“ Come and let us tell you the rest, if
you care to listen, and if not, we won’t
bore you.
“ And now for the last plea. We
have the sportiest golf course this side
of St. Andrews. We will be through
in time to give you a couple of rounds.
There are five liquid hazards, all water.
All rules will be suspended for the day.
Putts will be conceded and nobody will
care how you address the ball either
before you hit it, or after.”
That, we think, constitutes a very
good invitation, but you should also
know something concerning the two
banks that will act as hosts to the visit­
ing bankers.
The Bank of Dwight is one of the old­
est banks in the state. Its resources are
approximately $1,000,000, and its of­
ficers are: Edward McWilliams, presi­
dent; John P. and Charles D. McWil­
liams, vice-presidents; Louis A. Weicker, cashier; and H. J. West and A. S.
Lower, assistant cashiers.

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

The First National Bank has re­
sources of approximately $1,500,000,
and its officers are : Frank L. Smith,
president; J. H. Oughton and John J.
Doherty, vice-presidents; E. M. Hoff­
man, cashier; and J. J. Spandet and
F. A. Haise, assistant cashiers.
The recent statement of condition of
the First Bank and Trust Company of
Cairo shows total resources in excess
of $2,900,000, capital stock of $250,000 and deposits of more than $2,360,000. Officers of the bank are: Reed
Green, president; W. H. Wood, 0. B.
Hastings and H. E. Halliday, vicepresidents ; H. R. Aisthorpe, cashier
and secretary; H. C. Steinel, H. E.
Emerson and V. M. Brown, assistant
cashiers.
The last statement of condition of
the Stockyards National Bank of Chi­
cago shows total resources in excess of

The new building of the Glencoe
State Bank has been completed.
Laurence Fishel has resigned as as­
sistant cashier of the Hopedale Na­
tional Bank.
The First State Bank of Greenview
has recently installed a new nest of
safety deposit boxes.
The River Forest State Bank re­
cently held formal opening of its new
building.
Two North Carolina darkeys were
discussing the local banker.
“ Dey say he’s kindah tight,” said
one.
“ Tight nothin’, ” said the other.
“ Dat man’s as lib ’l as dey makes ’em.
He loan me five dollahs two yeahs ago
and he ain ’ nevah ast fo ’ it yet.
E b’ry Sat’day I goes ’roun’ and pays
him two bits intrust and he says foh
me not to worry ’bout dat principal.
Dat banker shuah am white!”

108

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IL L IN O IS

NOTES

1111111111111111111111111111111111111111111111111111111111111111111111111111111111

The recent combined statement of
the Drovers National Bank and the
Drovers Trust and Savings Bank of
Chicago shows total resources in ex­
cess of $29,000,000 and deposits of
over $25,500,000. Capital stock is $1,350,000 and surplus and undivided
profits are over $1,500,000, making it
an honor roll bank.
The Brwyn Mawr State Bank of Chi­
cago has been bought by the John Bain
interests.

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Robert H. Sloan has been elected an
assistant cashier of the Peoples Trust
and Savings Bank of Elmhurst and
Miss Ruth Robertson has been elected
secretary and assistant manager of the
real estate loan department.
The deposits of the four banks of
Monmouth total over $6,800,000, ac­
cording to their recent statements of
condition.
The recent statement of condition of
the First National Bank of Marion
shows total resources in excess of $2,400,000 and deposits of over $2,100,000. Surplus equals the capital of

M ay, 1929
$100,000, making it one of Illinois’
honor roll banks. Officers of the bank
are: Shannon Holland, president;
Joab Goodall, vice-president; L. C.
Campbell, vice-president and cashier;
W. S. Burkhart, B. E. Mitchell, Sara
FitzGerrell, Edith Roberts and W. W.
Frick, assistant cashiers.
The deposits of the seven national
banks of Rockford total $32,833,465.10, according to their recent state­
ments of condition.
The last statement of condition of
the Monroe Center State Bank shows
total resources in excess of $630,000
and deposits of more than $500,000.
The Farmers State Bank of Tus­
cola celebrated its twenty-fifth anni­
versary April 4.
Anna M. Lawless, cashier of the
Farmers Bank of Liberty for the past
nine years, has resigned and Jesse E.
Kline, assistant cashier, has been
elected cashier.

O U may feel that your
business is entitled to
the personal attention
and individual treatment found
so valuable by those banks
w hom w e now serve.

Y

If so w e will be glad to outline
the advantages in nam ing us
your Chicago correspondent.

THE NORTHERN
TRUST COMPANY
In the Heart of the Financial District

C H IC A G O
N O R T H W E S T CORNER LA SA LLE AND MONROE STR EETS


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

The recent statement of condition of
the Citizens State Bank and Trust
Company of Edwardsville shows total
resources in excess of $1,300,000 and
deposits of over $1,100,000. Capital
Stock is $100,000. Officers of the bank
are: II. P. Hotz, president; Chas.
Schmidt and Louis May, vice-presi­
dents; W. L. Duckies, cashier; A. C.
Boeker and Edw. H. Poos, assistant
cashiers.
The recent statement of condition of
the First National Bank of Columbia
shows total resources in excess of $1,180,000 and deposits of over $1,000,000. Capital stock is $50,000 and sur­
plus and profits are in excess of $66,000, making it an honor roll bank.
Michael E. King, 71, chairman of
the board of the Second National
Bank of Danville, died recently at his
home in that city.
Officers elected for the coming year
for the Monroe County Federation of
Banks are: H. N. Kunz, president;
Philip Klein, vice-president; J. F.
Schmidt, secretary; L. W. Bode, treas­
urer.
John Butzow has been elected cash­
ier of the Kingston State Bank.
The name of State Bank of Pawnee
has been changed to the Pawnee State
Bank, and is capitalized for $50,000.
The building of the First National
Bank of Libertyville has been remod­
eled.
The Potomac National Bank and the
Goodwine State Bank have been merg-

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B

ed. Officers of the bank are: U. S.
Goodwine, president; Cora G. Rice,
vice-president; Albert Rice, cashier;
Palmer Smith and M. M. Goodwine, as­
sistant cashiers.

new account during the bank’s drive
for new business.

Lee Rust has been succeeded as pres­
ident of the McLean County Bank of
Bloomington by his son, Walter Rust.

The First National Bank of Altaniont recently installed a new vault
ventilator.

The Raymond State Bank has been
absorbed by the First National Bank
of Raymond.

The Basco State Bank and the Har­
mony State Bank of Denver have been
moved and will continue business at
Basco. The officers of the new bank
are: Sam Naylor, president; Albert
Neagelin, cashier.

A new building is to be built for
the Commercial Savings Bank of Mo­
line.
Riley S. Young has been elected
president of the Walworth County
Bankers Association and Kenneth
Goodrich has been elected secretary
and treasurer.

109

anker

The First National Bank of Potomac
and the Goodwin State Bank have con­
solidated.

The State Bank of Beverly Hills re­
cently held formal opening of its new
banking home.

A new bank to be known as the Up­
per Avenue Bank is being organized in
Chicago with a capital of $250,000.
The recent statement of condition of
the Tallula State Bank shows total re­
sources of nearly $300,000, deposits of
over $240,000 and capital of $50,000.
C. E. Greene is cashier of the bank.
A new burglar alarm is being in­
stalled in the Danforth Banking Com­
pany of Washington.
H. H. Windsor, Jr., has been elected
a director of the Lake Shore Trust and
Savings Bank of Chicago.
Robert H. Stone has been elected
assistant cashier of the Peoples Trust
and Savings Bank of Chicago.

The Montgomery County Loan and
Trust Company of Hillsboro recently
celebrated its sixtieth anniversary.
Glenn Craddock has been elected
cashier of the First National Bank of
Morrison to succeed Mayor Van Osdol.
More than 10,000 people called to
extend their congratulations on the for­
mal opening of the South Ashland Na­
tional Bank, Chicago, on April 3.
R. M. Crittenden has resigned as
president of the First National Bank
of Benton.
The State Bank of London Mills has
purchased the Farmers State Bank of
Ellis.
A new $350,000 building is being
erected for the State Bank of Pala­
tine.
The Peru State Bank is giving an
umbrella to every person opening a

W ill A tten d

Illinois

G rou p M eetin gs

Complete Service
NNUMERABLE facilities are here. Some
perhaps seldom needed —but always avail"
able to meet any emergency. Our facilities
have been developed, here and abroad, in 67
years of studying your need for service.

I

A bank where transactions are friendly and
congenial and it is a pleasure to do business.

The Foreman National Bank
The Foreman Trust A n d Savings Bank
L a Salle and W a sh in g to n Streets, Chicago

RESOURCES

W ITHOUT
JOHN B. C LARK
Vice-President and Bond Officer, Union
Trust Co., East St. Louis


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

EXCEED

125

M ILLION

DOLLARS

T H E A I D OF C O N S O L I D A T I O N

110

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sat

O fficial Publication o f the St.Louis Chapter

Z

=

AMERICAN INSTITUTED BANKIN G :£ = = M

14

May, 1929

NUMBER

A. C. EIEDELL, Editor and Executive Secretary, 316-324 Merchants Laclede Bldg. R. N. ARTHUR, President, Missis­
sippi Valley Trust Co. MISS MARGARET S. COONS, Associate Editor, 1st National Bank.
Notices intended for publication should be in the hands of the Editor the fifteenth of each month. Write on only one
side of paper and double space. Chapter Headquarters, 316-324 Merchants Laclede Bldg. CHestnut 9280.
LEGAL TENDER is published to promote good fellowship among Chapter members, to record the activities of the Chapter
generally, and to maintain the high ideals of the American Institute of Banking along educational lines of endeavor.

Tulsa— the C onvention

C ity!

When delegates from St. Louis meet
with approximately 3,000 other bank­
ers in the American Institute of Bank­
ing, to be held in Tulsa June 10-14,
they will witness the result of one of
the most spectacular developments ever
experienced by a city.
Today, a city of 170,000 souls, Tulsa
was only a straggling cow-town of less
than 1,400 population in 1900. The
present skyline, dominated by the 28story Exchange Bank tower, has, al­
most overnight, evolved from the rag­
ged line of false-fronted, one-story,
frame structures that lined its main
street within memory of many present
citizens.
Oil, of course, provided the first im­
petus for development, and it is a
curious fact that, for several years,
the more conservative citizens of the
community did all within their power
to discourage the development of the
oil fields.
Midway of the decade between 1900
and 1910, oil was discovered near Red
Fork—now a part of the city— and
Tulsa became, for a time, a “ boom
town.” In the six years between 1904
and 1910, the population of the town
increased six-fold. In the next ten


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

years, the population increased to more
than 72,000.
It was during this period that the
city began to
lose the a s ­
pects of a
“ boom town,”
and to take on
the character­
istics of solid
growth. D e ­
velopment bec am e more
soundly financ­
ed, the g e t rich-quick type
o f promoter
Tulsa,
was w e e d e d
out, and the city passed from the boom
stage to the permanent city role with­
out any more serious financial depres­
sion than was being felt in other parts
of the country.
With this transition, industries and
institutions began to take over the de­
velopment of the city where the pro­
moters were leaving off, and, while oil
and oil development still remain the
dominant interests of the community,
other factors were operating to ren­
der the city more or less independent
of the fluctuations in the petroleum
market.

Co-incidental with the financial and
industrial expansion of Tulsa, there
was ushered in an era of city develop­

the Frontier Town.

ment and construction. Pure water
was brought from Spavinaw River, 60
miles away in the hills. Public util­
ities companies took another hitch in
their belts and began to catch up with
the demand for service which was put
upon them.
A boulevard system was planned and
begun, and a park system began to
take shape. In the down-town dis­
tricts, vacant lots became scenes of
feverish activities as buildings, ten,
fifteen, twenty-four and finally twen­
ty-eight stories in height began to rear
against the skyline. It was a race be­
tween business and
";Jî*ÎÎ
the city- That race
is still in progress,
with new b u s i ­
nesses and indus­
tries locating in
Tulsa continually,
and a continuous
program of con­
struction u n d e r
way to provide ac­
commodations for
them.
The present-day
Tulsa is a wellbalanced munici­
pality with more
than 200 miles of

M ay, 1929

paved streets. Such industries as oil
refineries, an aircraft factory, glass
plants, salt plants, tool factories and
machine shops—to mention only a few
— are located within the limits of the
metropolitan district. The recent or­
ganization of a large industrial finance
corporation assures the city of more
industries in the near future.
Four railroads serve the city, the
M. Iv. & T., Santa Fe, Frisco, and
Midland Valley. At the present time,
the first three are combining with the
city to build a new union station at
a cost of approximately $3,000,000.
From a cultural viewpoint, Tulsa
has progressed far from the straggling
cow-town of thirty years ago. There
are a total of ten junior and senior
high schools as well as Tulsa Univer­
sity, formerly Kendall College. This
latter institution boasts an enrollment
of about 1,500 students. The Chicago
Civic Grand Opera Company appears
annually in this city.
Tulsa is also the home of radio sta­
tion KVOO, from which programs are
broadcast daily.
The meeting of the American Insti­
tute of Banking in Tulsa marks a new
milestone in the city’s development,
manifesting, as it does, the financial
importance of the oil city. Probably
for that reason, as much as any other,
the banks of Tulsa are making exten­
sive plans for the entertainment of
guests on the scale that has always
prevailed in that section of the coun­
try. In other words, there will be true
southwestern hospitality awaiting the
city’s 3,000 visitors.

Data fo r the D elegate
According to present arrangements,
the St. Louis delegation will leave for
Tulsa at about 9:00 p. m., Sunday,
June ninth, thus arriving in the con­
vention city at 9 :00 a. m. on Monday.
This will give us ample time to see to
our hotel accommodations, registration
for the convention proceedings, and
such other matters as may claim our
attention. We should be free of these
details before noon.
Reservations have been made for
our delegation at the Hotel Mayo,
which has been designated as the head­
quarters hotel of the convention. It
is important that each delegate get in
touch with the secretary of our chap­
ter at once, so that hotel reservations,

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

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Pullman accommodations, and other
details may be arranged for as soon
as possible. We should also have some
definite information as to the Depart­
mental Conferences by the middle of
May. It is urged that all members
read the April Bulletin from cover to
cover, as it contains a great deal of
valuable information.
It is believed that the following is
a reasonable approximation of the cost
for one delegate to the convention.
Railroad Fare ................... $22.94
Lower Berth (both w ays). . 10.50
Meals on Train....................
3.00
Hotel (5 days @ $ 4.5 0)... 22.50
Meals (5 days @ $3.50). . 17.50
Registration Fee ..............
5.00
Total ....................... $81.44
The hotel rate given above is based
on the assumption that double rooms
will be used, as the minimum rate for
single rooms at the Mayo is $6.00 per
day. The registration fee for guests
is $10.00. In case a delegate intends
to take one or more guests to the con­
vention, such information should be
given to the secretary as soon as pos­
sible.

G ood ell W in s Local Public
Speaking C ontest
As has become the custom, the third
National Public Speaking Contest for
the Giannini prizes is to be held at
the Tulsa convention in June. The
country has been divided into nine dis­
tricts, in which the preliminaries will
be held, the nine winners going to
Tulsa for the finals. Each chapter
may send one speaker to the prelimi­
nary contests. The eliminations for
the fifth district, which includes St.
Louis, will be held in Minneapolis on
or before May 15.
Mr. Dan D. Goodell, of the First Na­
tional Bank, East St. Louis, has been
declared the winner of our local con­
test, and he will go to Minneapolis as
our representative. Dan has applied
himself well in our class in effective
speaking, and we may rest assured that
he will give a good account of himself
in Minneapolis. Although the compe­
tition is always of the hardest, we
have reason to hope that he will go on
to win at Tulsa.
Needless to say, Dan has the good
wishes of every member of our chapter.

A.

I.

B.

W o m e n ’s

Bridge

Party a H u g e Success
On Saturday, April 6th, under the
auspices of the Women’s Committee
of the A. I. B., 248 members and
friends gathered at Vandervoort’s Tea
Room and enjoyed a delightful after­
noon at bridge. Refreshments were
served and a daintily tied box of four
beautiful handkerchiefs was the prize
for each table.
With the first announcement of the
party the statement was made that the
proceeds would be turned over to the
chapter.
Members of the committee were con­
stantly answering such remarks as:
“ How can you make any money off
this party ? ” “ Who planned all of
this?” “ I didn’t know the A. I. B.
parties were so n ice!” “ This is my
first A. I. B. party but I don’t intend
to miss another! ’ ’
No plans have been made for another
bridge party, but quite a number have
suggested that another be given.

T h e N ew s M u st Wait
At the time our April issue went
to press, nominations for chapter of­
fice and for our delegation to the Tulsa
convention were not yet completed, and
this issue was printed before the elec­
tion of April 26. Thus nothing is to
be gained by printing the list of nom­
inations at this time, as the news has
already been conveyed to each member
of the chapter by means of a personal
notice. The chapter election and the
annual dinner will be over before this
issue of legal tender is placed in your
hands, but we must wait until the June
issue for formal news of these events.
All members shall be duly notified
of the result of the election, so we will
not suffer greatly because of the fact
that we have only a monthly publica­
tion. The news of the election will
surely be worth the necessary waiting.
A proud man is satisfied with his
own good opinion, and does not seek
to make converts to it. Pride erects
a little kingdom of its own, and acts
as sovereign in it. Hence we see why
some men are so proud they cannot
be affronted, like kings who have no
peer or equal.-—Hazlitt.
I t ’s better to be born industrious
than lucky—but much less profitable.

112

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Security - First

National

D eposits $ 5 5 0 ,0 0 0 ,0 0 0
Publication of the official statement
of condition of the Security-First Na­
tional Bank of Los Angeles as it start­
ed business on April 1st, revealed to­
tal deposits of $553,985,630 and total
resources of $624,567,254. The bank
was formed by a consolidation of the
Los Angeles-First National Trust and
Savings Bank and the Security Trust
and Savings Bank.
Principal items among the resources
include loans and discounts to the to­
tal of $353,999,577; U. S. Government

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securities, $79,377,921; other bonds and
securities, $58,596,454; cash and due
from banks, $96,360,586, while the
bank premises, including branches, are
valued at $14,651,467.
The bank began operations with a
capital of $30,000,000, surplus of $15,000,000, undivided profits of $5,000,000, reserves of $2,939,130, a special
contingent fund of $3,200,000, and ac­
ceptance and letters of credit liability
of $11,983,460.
At the first meeting of the board of
directors of the Security-First National
Bank the following were elected as the
Executive Committee: J. F. Sartori,

chairman; Henry M. Robinson, vicechairman; Wm. H. Allen, Jr., Arch W.
Anderson, M. N. Avery, H. C. Barroll,
Geo. I. Cochran, John T. Cooper, Ed­
ward Elliott, Geo. E. Farrand, Ralph
B. Hardacre, W. D. Longyear, John B.
Miller, James R. Page, A. B. Ruddock,
Herbert H. Smock, W. H. Thomson,
Charles H. Toll, Geo. M. Wallace,
James E. Shelton, secretary and E. W.
Pugh, assistant secretary.

M a rley

H a ir or sen

Joins

C o d y Trust C om p a n y
Announcement is made of the ap­
pointment of Marley Halvorsen, for­
mer assistant manager in charge of
sales in the real estate loan depart­
ment of the Chicago Trust Company,
as manager of retail sales for Cody
Trust Company, Chicago.
Though not yet in his thirties, Mr.
Halvorsen has established an enviable

AN INTERESTING
PARALLEL
This will interest Southern bankers:
T h e joint ownership-individual operation plan just concluded be­
tween the National City Bank and the Farmers Loan and Trust
Company o f N ew Y o r k —
n o w th e nation’s la rg e s t
b a n k in g g r o u p — c lo s e ly
parallels the arrangement by
which the U nion Planters
and the Manhattan Savings
Bank

&

Trust

Company

recently joined forces to give
Tennessee its largest and
m o s t h ig h ly c a p ita liz e d
bank.
M ARLEY

U n io n P l a n t e r s
B A N K 6c T R U S T C O M P A N Y
MEMPHIS, TENN.
cAffiliated "with

Manhattan Savings Bank 8i Trust Company


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

Combined Capital Funds

$11,200,000.00
F o r w a rd with ¿¡Memphis— Since ’6 9

H ALVORSEN

reputation in the real estate field.
His connection with the Chicago Trust
Company covers a period of twelve
consecutive years. He became asso­
ciated with the real estate loan depart­
ment of the Chicago Trust Company
early in 1917. Two years later, when
Arthur B. Cody and Hiram S. Cody
joined the Chicago Trust Company as
managers of the department, young
Halvorsen threw himself whole-heart­
edly into their plan for building up
its sales to the volume to which the
Codys felt it was entitled.
He has a wide— and ever widening
— circle of friends in the real estate
loan field. He understands the impor­
tance of rendering real service to his
growing clientele. With his wife and
little daughter, he lives in a charming
home of his own in Indian Hill Es­
tates.

TENNESSEE CONVENTION SECTION

Tennessee Bankers W ill Meet at
Nashville* May 940
HERE the spirit of hardy pio­
neers cut from the Avilderness
the location of a mighty city, where
Andrew Jackson lived, fought, raced
his horses, followed the hounds and
finally lay down to spend the time un­
til earth’s heroes shall rise, where
the spirit of the old South still mingles
with the progress and industrial ad­
vancement of the new, there stands
Nashville, Tennessee, “ In the Dimple
of the Universe.”
Sheltered from the winds and storms
by a rim of beautiful foothills that
completely surround one of the richest
agricultural valleys in the world, in the
heart of the great “ Middle Tennessee
Basin” Nashville has continued to
grow and prosper from a little village
of the early days to a magnificent and
beautiful city of some 136,900 people
within its corporate limits and an ad­
ditional forty thousand living in its
densely populated suburbs. It is a
city well built, with beautiful homes,
artistic public buildings, magnificent
educational institutions, a Avell diversi-

ing the will of its people, their spirit
to do and willingness to cooperate.
Never a boom city but throughout
its history maintaining and holding to
a steady growth in population, beau­
tiful structures and artistic homes,
Nashville today stands as foremost in
the ranks of Southern cities and here
bankers will gather on May 9 and 10
for the annual convention of the Ten­
nessee Bankers Association.

W

BRIEF glance at what the visitor
will find in Nashville would not
be amiss. Nashville is a city of 23.4
scjuare miles within its corporate lim­
its, ha\Ting just extended its city lines
to include two beautiful suburbs of
home sections that have heretofore not
been an actual part of the city, yet en­
joying all privileges of the city. It
has 372 miles of streets Avithin its bor­
ders, 93 miles of which are paved, 285
miles of water mains, 238 miles of
sewers, 263 miles of gas mains, 108
miles of street railway augmented by
22 miles of bus line connection, and

A

American Trust Company Building,
Nashville.

fied industry, a people of hospitality
who love their city and welcome the
visitor to its doors. A city built, not
of bi'ick and mortar alone, but includ­

N A T I O N A L B A N K C H A R T E R N O . 336

Y our Items fo r

The

First National
Bank

NASHVILLE
a n d th e N a s h v ille t e r r it o r y w ill
b e h a n d le d to y o u r e n tire s a tis ­
fa c t io n b v th e T H I R D
NA­
T IO N A L B A N K .

Madison Avenue at Second St.

M E M P H IS ,

TENN.

T\ /T A K E this strong bank
-lA-*- your Memphis Corre­
spondent, and be assured of
facilities, services and re­
sources to completely serve
your every need.

Y o u r N a s h v ille a c c o u n t — o n e o f
y o u r m o s t im p o r t a n t — w ill re ­
c e iv e th e sp e cia l a tte n t io n w h ic h
it s h o u ld h a v e w h e n th e T h ir d
N a tio n a l B a n k is y o u r c o r r e ­
s p o n d e n t in th is s e ctio n .

T h ir d
National B a n k
Fo u r t h Av e . At C h u r c h S t .

Resources: More Than25Millions

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

N A S H V IL L E „ T E N N .

113

114

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The Parthenon, Nashville, Tennessee.

everything that goes to make np a real
city. It has 24 parks and playgrounds,
containing 2,484 acres of land, in one
of which is an eighteen hole golf course,
and in another stands the only exact
replica of the old Grecian Parthenon
to be found in the world. It has five
national banks and eight banks and
trust companies, the total resources
thereof being $139,989,602, total de­
posits of $87,601,125 and clearings

for 1928 of $1,179,685,804. The sta­
tistics for 1928 showed assessed valua­
tion of real estate in the city of $169,623,822; real estate transfers, $25,054,875; building permits $5,472,273; and
post office receipts $1,863,177. Nash­
ville has 321 industrial establishments,
employing 22,000 and an annual pay
roll of $20,000,000 and manufactured
products each year valued at $100,000,000.

F ourth & F ir s t
N ational Ban k
Nashville, Tennessee

Nashville was the home of the first
rayon manufacturing plant in the
South, the Dupont Rayon Company lo­
cating a plant at Old Hickory, the site
of the famous powder plant erected by
the government during the war, this
industry having since developed into
one of the largest in the country and
employs approximately 5,000 people.
Old Hickory is now an industrial city
of 12,000 people. Nashville makes
more self rising flour than any other
city in the South and grinds more
wheat than any other city in the South,
being one of the largest flour centers
in the country. Nashville has more
grain handling facilities and elevators
than any other city in the South, leads
the South in the manufacture of
stoves, smoking tobacco, shoes, com­
mercial fertilizer, work garments and
cement. It is the South’s largest and
one of the nation’s largest coffee roast­
ing centers, and the South’s agricul­
tural, poultry and egg center. Nash­
ville is the center of the printing indus­
try in the South, having large and
complete plants in all branches of this
industry and more religious periodicals
are published here than in aijy other
city in the world. Nashville makes
more steel river barges than any other
inland city in the country, has large
furniture interests, makes more hosiery

Cfjase Jtational Panfe
of the City o f s^ e fw Y ork
Pine Street Corner of Nassau
Capital
Surplus and Profits
Deposits (March 27, 1929)

$ 61,000,000.00
79,937,918.04
1,048,009,157.21

OFFICERS
A l be rt H . W ig g in

Chairman of the Board
R obert L . C l ar k so n

J o h n M cH u g h

T h e Banks That Have
Stood the Test o f Tim e

C A P IT A L A N D SU RPLU S

$ 7 * 2 6 4 9OOO.OOj

Chairman of the Executive Committee

Samuel H. M iller
William E. Lake
Carl J . Schmidlapp
Charles A . Sackett
Reeve Schley
Hugh N. Kirkland
H enry Ollesheimer
Jam es H. Gannon
Jam es T. Lee
William E. Purdy
Sherrill Smith
George H. Saylor
A lfred C. Andrews
M. Hadden Howell
Robert I. B arr
Joseph C. Rovensky
George E . W arren
Ruel W. Poor
Edwin A . Lee
George D. Graves
Leon H. Johnston
Fran k O. Roe
H arry H. Pond
W illiam H. Moorhead
Horace F . Poor
Samuel S. Campbell
Edward E . Watts
Vice-President and Cashier
W i l l i a m P. H olly
SECOND

NASHVILLE
T

rust

Co.

Nashville, Tennessee


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

President

V I C E -P R E S I D E N T S

V I C E -P R E S I D E N T S

T. A rthur Pyterm an
Frederick W . Gehle
Ambrose E . Impey
A lfred W. Hudson
Robert J . Kiesling
Jam es L . M iller
Lynde Selden
Joseph Pulverm acher
Thomas B . Nichols
Franklin H . Gates
George S. Schaeffer
A rth ur M. Aiken
J . Sperry Kane
,S. Frederick Telleen
George A . Kinney
Otis Everett
George G. M ilne, J r .
H arold L . V anK leeck
Frank M. Totton
Comptroller
T ho m as R it c h ie

Foreign and Trust Department Facilities

M ay, 1929

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than any other city in the South and
is the largest meat packing center in
the South, slaughtering annually more
than 400,000 head of animals.
S an educational center, Nashville
can nowhere be surpassed. The
city boasts educational facilities that
will enable a child to start in the kin­
dergarten, take a full public public
school and high school course and al­
most any desired degree without leav­
ing the city of Nashville. Embraced
in this chain of education will be
found 40 public or city schools and
high schools with 537 teachers and 26,000 students. The institutions for
higher learning, including preparatory
and similar institutions, number 38 and
their combined assets amount to more
than $28,000,000, and bring to Nash­
ville more than 10,000 nonresident stu­
dents each year. Among the insti­
tutions of this class will be found such
noted institutions as Vanderbilt Uni­
versity, George Peabody College for
Teachers, Ward-Belmont School for
Young Ladies, Scarritt College for
Christian Workers, Southern Graduate
College of Y. M. C. A., St. Bernard
Academy, St. Cecelia Academy, Trevecca College, David Lipscomb College,
Nashville Conservatory of M u s i c ,
Southern Printers School and other

A


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

Tennessee State Capitol, Nashville.

institutions. Among the institutions
for negroes will be found Fisk Uni­
versity, Meharry Medical College, Wal­
den University, Roger Williams Uni­
versity and two negro Baptist Theolog­
ical Seminaries.
Nashville has many points of inter­
est for the visitor. The only exact
replica of the Parthenon to be found
in the world, is located in Centennial
Park, considered one of the foremost

pieces of architecture to be found any­
where. The Hermitage, the old home
of Andrew Jackson, is located twelve
miles from Nashville and is maintained
just as it was at the time of Jackson’s
death. William Driver, old New Eng­
land sea captain who named the Amer­
ican Flag “ Old Glory,” is buried in
the old city cemetery. The Tennessee
War Memorial Building, erected joint­
ly by the state of Tennessee, city o f

116

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Nashville and Davidson County as a
memorial to the soldiers and sailors
of the late war, is located in the heart
o f Nashville’s business district and
contains the James K. Polk Memorial
and the Tennessee Historical Society
Museum. The Tennessee State Capitol
is considered one of America’s great­
est bits of architecture and is located
on the highest spot in the city.
Nashville always welcomes the vis­
itor with true Southern hospitality and
this will be true of the welcome for
the Tennessee Bankers when they
gather in the capital city«for their an­
nual meeting.

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iiiiiim iiiiim iiiiim im iiiim iiiiiiiiim iiiiim iiiiim iiim im im iii

T EN N ESS EE

NOTES

m iiiiiim iiiiiiiiiiiiim iim iiim m m iiiiiiiiiiiim iiiim m iiiim iiii

C.

C.

Nottingham,

executive vice-

president of the First National Bank
of Chattanooga, died April 6 at his
home in that city.
Plans are being made for an addi­

tion to the building of the Murfrees­
boro Bank and Trust Company.
The

Fidelity-Bankers

Trust

Com­

pany is the name of the new bank
formed by the merger of the Fidelity
Trust Company and the Bankers Trust
Company of Knoxville.

The recent statement of condition of

the American Banks of Nashville
shows total resources in excess of $33,700,000, deposits of more than $25,800,000 and capital of $2,500,000.
The Greene County Bank of Green­

ville opened a branch office at Baileyton on April 17.
A t a recent meeting of the board

of the Farmers State Bank of Jasper,
A. L. Robertson, cashier, was elected
vice-president ; W. N. Hackworth, as­
sistant cashier, was elected cashier ;
Miss Nell Robertson was elected as­
sistant cashier.
The First National Bank of Paris

has changed its name to the First
State Bank and Trust Company.
The recent statement of condition of

the Graysville Bank at Graysville
shows total resources in excess of
$110,000, deposits of more than $80,000 and capital of $22,000. Officers of
the bank are: S. G. Hutcheson, presi­
dent ; L. M. Grimsley and T. E.
Downey, vice-presidents; K. F. John­
son, cashier; Miss Bertha Teague and
Miss Merle Morgan, assistant cash­
iers.
The building of the First National

Bank of Harriman is being remodeled.
The recent statement of condition

of the First National Bank of Chatta­
nooga shows total resources in excess
of $30,000,000, capital of $2,500,000
and deposits of more than $20,000,000.
The recent statement of the Bank of

A new banking home is rising at Second

Gleason shows total resources in excess
of $230,000, deposits of more than
$189,000 and capital of $20,000. Since
surplus is ecpial to the capital it is an
honor roll bank. Officers of the bank
are : W. B. Bynum, president ; J. C.
Ammons, vice-president; R. W. Bandy,
cashier; M. E. Fanning, assistant
cashier.

and Monroe to house our nine efficiently
The Springfield Bank at Springfield

operated departments under one roof.

is installing a new vault door.
L. A .

Sparks has been elected as­

sistant cashier of the Citizens Bank
of Daisy to succeed Macon L. Roberts,
who recently resigned.

Bank OF Co m m erce
and Trust Company
MEMPHIS

CAPITAL,SURPLUS AND UNDIVIDED PROFITS
$ 5 , 0 0 0 , OOO. OO


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

C. C. Cocke has been elected a direc­

tor of the First National Bank of
Clarksville.
The recent statement of the Citizens

Bank of Lafayette shows total re­
sources in excess of $340,000, deposits
of more than $278,000 and capital of
$30,000. The Citizens Bank is install-

M

M ay, 1929
ing a new burglar-proof vault. Also
new fixtures are being installed and
the interior of the building remodeled.

Facts C oncerning the
C onvention
Registration for the convention will
be held at both the Hermitage Hotel
and the Andrew Jackson Hotel. All
meetings will be held in the audito­
rium of the War Memorial Building.
Addresses of welcome will be given
by Governor Henry H. Horton and
Edward Potter, Jr., president of the
Nashville Clearing House. Response
will be by A. F. Frierson, cashier of
the City National Bank of Knoxville.
Frank W. Simmonds, deputy man­
ager of the American Bankers Associa­
tion, will speak on “ Competition versus
Group Cooperation. ’ ’
Dr. H. A. Morgan, president of the
University of Tennessee, will make a
short address, elaborating on the re­
port of the Agricultural Committee,
his topic being “ Tennessee Banker’s
Part in Agricultural Development.”
Alexander Hall, secretary-treasurer
of the Robert Morris Associates, will
have as his topic “ Dollars and Sense,”
and he will discuss credit departments
for banks.
A tax conference will be held the
afternoon of the first day.
The convention will nominate five
bankers for superintendent of banks.

W ill A tten d C onvention
at M em p h is

id - C o n t i n e n t

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Addresses

National

C ham ber o f C om m erce G rou p
John G. Lonsdale, president of the
National Bank of Commerce in St.
Louis, presided at a round-table con­
ference on “ Business Finance and
the Credit Supply,” held in Washing­
ton in connection with the seventeenth
annual meeting of the Chamber of
Commerce of the United States.
The round-table sub-topics were :
‘ ‘ Credit Supply and Speculation in
Relation to the Requirements of Busi­
ness” ; “ New Developments of Cor­
porate Finance” ; “ Community E f­

forts to Protect Purchasing Power
Through Investment Educating.”
Mr. Lonsdale is a director of the
national chamber, Department of Fi­
nance, and was sponsored for reelec­
tion by the St. Louis Chamber of
Commerce. In addition to being a di­
rector, he also has been serving as
chairman of the Committee on Aero­
nautics.
Mr. Lonsdale also delivered an ad­
dress before the gathering on “ The
Tax Dollar.”
Religion is civilization, the highest.—
Disraeli.

"Oldest and Largest”
means

More Than Ever
T h e c o n s o lid a t io n o f th e F ir s t N a tio n a l,
C h a t t a n o o g a , w it h th e C h a t t a n o o g a S a v ­
in g s B a n k & T r u s t C o ., m a k e s a b a n k , n o t
o n ly th e la r g e s t in E a s t T e n n e s s e e , w h ic h it
h as b e e n f o r y e a r s ; b u t th e la r g e s t a n d m o s t
c o m p le t e ly e q u ip p e d in e a ch p a r tic u la r d e ­
p a r tm e n t o f its a c tiv itie s .
W h e n y o u th in k o f a n y b a n k in g s e r v ic e in
E a s t T e n n e s s e e , th in k o f th e F ir s t N a tio n a l,
C h a tta n oog a .

THE FIRST NATIONAL BANK
OF C H A T T A N O O G A
"T A e Oldest and Largest Bank in East Tennessee”
H. R. RU TLAN D
Vice-President of the First National
Bank, Chattanooga, who will represent
his institution at the Tennessee Conven­
tion.


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Federal Reserve Bank of St. Louis

118

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cashier of the bank last October when
R. D. Cannon resigned.

Mississippi
Bankers
Convention

BILOXI
M A Y 14-15
MISSISSIPPI

NOTES

........................................................................................................... i n m i m i ..............

The recent statement of condition
of the Citizens Exchange Bank, State
Line, shows total resources in excess of
$45,900, deposits of more than $33,000
and capital of $10,000. W. S. Gandy
is cashier of the bank.

The recent statement of condition of
the Bank of Clinton at Clinton shows
total resources in excess of $126,000,
deposits of nearly $100,000 and cap­
ital of $15,000. S. A. Causey became


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

charge

on

unprofitable

ac­

The recent statement of condition of

The recent statement of condition of

the Bank of Shannon at Shannon
shows total resources in excess of
$208,000, deposits of over $180,000
and capital of $15,000. Officers of the
bank are: J. M. Thomas, president;
J, 1ST. Redus, vice-president; C. H.
Harris, cashier.

the Merigold Bank at Merigold shows
total resources in excess of $240,000,
deposits of more than $214,000 and
capital of $15,000. Since the surplus
is equal to the capital it is an honor
roll bank. Officers of the bank are:
A. B. Wiggins, president; Edgar
Brown, vice-president; S. A. Roberts,
cashier. The bank was organized in
August, 1927, and has paid 26 per cent
dividends up to the present time.

The recent statement of condition
of the Bank of Amory shows total re­
sources in excess of $680,000, deposits
of approximately $625,000 and capital
stock of $30,000. Surplus is $25,000.

The recent statement of condition of

i i i i i i i i i i i i i i n . i l ii i ...................... .

service
counts.

the Iuka Guaranty Bank at Iuka shows
total resources in excess of $550,000,
deposits of more than $500,000 and
capital stock of $25,000. R. A. McRee, Jr., is cashier of the bank.

The recent statement of the Bank
of Morton shows total resources of
more than $550,000, deposits in ex­
cess of $513,000 and capital of $21,000.
Surplus is $21,000, making it an honor
roll bank. Officers of the bank are:
W. D. Cook, president; T. W. Town­
send, vice-president; W. S. Still, cash­
ier. This bank recently installed a

The recent statement of condition
o f the Capital National Bank at Jackson shows total resources of more than
$6,650,000, deposits of over $5,400,000
and capital of $300,000. Since the
surplus of $325,000 exceeds the capital
it is an honor roll bank. Officers of
the bank are: Thad B. Lampton, pres­
ident ; W. M. Buie and Edward W.
Freeman, vice-presidents; S. C. Hart,
vice-president and cashier; R. L. Skin­
ner, assistant cashier.

The recent statement of condition of
the Columbus National Bank at Co­
lumbus shows total resources in ex­
cess of $2,000,000, deposits of over

Where You Can
Confidently Expert I
to Fin d the

S E R V IC E

|

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In t e r s t a t e T r u s t
_yin d B a n k i n g g >
c

NEW ORLEANS

LOUISIANA

1

Mo y , 1929

M

$1,760,000 and capital of $100,000.
Since the surplus and profits exceed
the capital it is an honor roll bank.
Officers of the bank are: John W.
Slaughter, president; Geo. P. Waller,
vice-president and cashier; E. R. Hop­
kins, trust officer; H. V. Wingfield and
T. E. Patton, assistant cashiers.

U nion Trust Officer G oes
W ith Financing H o u s e
E. M. Coen, assistant secretary of
the Union Trust Company, Cleveland,
left Monday, April 8th, to take up his
new duties as executive vice-president
of a newly organized financing com­
pany known as the Cleveland Accept­
ance Bank, with offices in Carnegie
Hall.
Mr. Coen had been with the bank
since 1919, having joined the old Un­
ion Commerce— one of the six banks
that went to make up the Union Trust
Company when it was formed in 1921.
He has been in the business extension
end of the work all these years.
Mr. Coen, who is thirty-four years
old, is married and lives with his wife
and five-year-old daughter at 1643
Crest Road. He is a graduate of Yale,
class of 1918.

id - C o n t i n e n t

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Sixty-Three Story Building to Be Erected
on Wall Street
JEGOTIATIONS have been com­
pleted whereby an immense 63story skyscraper, the tallest in New
York City and the highest bank and
office building in the world, will be
erected in the heart of the financial
district. Official announcement to this
effect was made recently by the own­
ers, an investment syndicate headed by
George L. Ohrstrom of G. L. Ohrstrom
& Company, Incorporated, investment
bankers, and including the Starrett
Corporation.
The new structure, to be known as
the Bank of Manhattan Building, will
occupy the greater portion of the block
bounded by Wall, Nassau, Pine and
William Streets. It will have a front­
age on Wall Street of about 150 feet,
extending from the United States As­
say Office to the Bank of America
building, and approximately 194 feet
on Pine Street; it will cover an area
of some 33,000 square feet. Upon its
completion, there will be only three
other buildings in this block, namely,
the Sub-Treasury, the Assay Office and
the Bank of America building, the lat­

ter being at the corner of Wall and
William Streets and extending north
to Pine Street.
The Bank of the Manhattan Com­
pany will occupy 100,000 square feet
of space in the new building. Pend­
ing completion of its quarters there­
in, the bank will move into temporary
quarters at 27 and 29 Pine Street.
Other tenants of the building will in­
clude the International Acceptance
Bank, International Manhattan Com­
pany, Incorporated, Field, Glore & Co.,
A. Iselin & Co., G. L. Ohrstrom & Co.,
Incorporated, Cadwalader, Wickersham
& Taft, J. A. Sisto & Co. and Aldred
& Co. Applications already received
from leading banking and other inter­
ests are said to be sufficient, if accept­
ed to take practically all of the rent­
able space in the new building.
With its 63 stories, surmounted by
a number of additional stories and ob­
servation tower, this giant skyscraper
of modernized French Gothic design
will rise 840 feet above the street level,
or about 36 feet higher than the
Chrysler Building now in process of

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Fourteen

j

Besides Banking Service

i

T had B. L ampton
Jas. A. A lexander
Edw. W. Freeman
P aul Chambers
Jos. H. Morris
F. W CtTbben^
Tohn W. Robinson

W. M. Buie
W. E. Guild
S. C. H art
T. M. H ederman
Carl Faust
C F. Kt.ttmb
Frank T. Scott

DIRECTORS

Capital National Bank


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

\

In O ur N e w B an kin g H o m e
F o r S e rv in g Your M ississip p i N e ed s

i
\
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The greater facilities o f our beautiful
and modern new banking home enable us
to extend the excellence o f our service in
greater fullness to our old and new
friends. Be sure to visit us when in this
vicinity and meamvhile send us your Mississippi items for our careful and prompt
attention.

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JACKSON, MISS.

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JA C K SO N , MISSISSIPPI

ABankofStrengthandCharacter

120

M

construction at 42nd Street and Lex­
ington Avenue, and 44 feet higher than
the Woolworth Building on Lower
Broadway. It will contain approxi­
mately 835,000 feet of rentable floor
space. Forty elevators, including pri­
vate elevators, will give ready access
to all floors.
In its new quarters, the Bank of the
Manhattan Company will have the
largest safe deposit vaults in New York
City, excepting possibly those of the
Federal Reserve Bank.
Starrett Brothers, Incorporated, one
of the subsidiaries of the Starrett Cor­
poration, will construct the new build­

id -C o n t i n e n t

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ing from plans prepared by H. Craig
Severance, with Yasuo Matsui as as­
sociate, and Shreve & Lamb as con­
sulting architects.
Financing in connection with this
undertaking will be handled by a bank­
ing group headed by G. L. Olirstrom
& Co., Incorporated. The land and
building to be erected thereon repre­
sent a total investment of approxi­
mately $20,000,000.
The properties controlled by the in­
vestment syndicate headed by Mr. Ohrstrom include some of the oldest and
best known landmarks of the financial
district. On the Wall Street side is

the 8-story structure at 34-36 Wall
Street, which was formerly the Gal­
latin Bank Building and is now known
as the Iselin Building; the 9-story
building at 38 Wall Street is the Mar­
shall Field Building; the Bank of the
Manhattan Company Building at 40
Wall Street and adjoining the Bank
of Amei’ica is a 13-story structure.
The Pine Street side of the plot in­
cludes the 13-story building at 25 Pine
Street which is next to the United
States Sub-Treasury Building and is
occupied by the Hooker Electrochemi­
cal Co.; the 12-story building at 27 and
29 Pine Street erected some thirty years
ago by Spencer Trask & Company. For-

S in c e 1852-

Safe and
Friendly
Service that
w ill please
you .
Architect’ s Drawing, Bank of Manhattan
Building

COLUMBUS
National Bank

merly, Kuhn, Loeb & Co. had their
headquarters in the 12-story structure
at 31 and 33 Pine Street, which is now
known at the Redmond Building. All
these buildings will be replaced by the
new skyscraper.

Italian Bank O p en s Offices

C O L U M B U S , MISS.

in N e w Y o rk

Jno. W. Slaughter, President Geo. P. Waller, Vice-Pres. & Cashier

The Banca Nazionale di Credito,
Milan, one of the leading financial in­
stitutions of Italy, announces that
Comm. Augusto Castiglioni, one of its
managing directors, will hereafter be
permanently located in this country
and has opened offices at 76 William
Street, New York, in order to repre­
sent the bank in the United States.

Largest N ational Bank in N ortheast M ississippi


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Federal Reserve Bank of St. Louis

May, 1929

Continental

M

Illinois

id - C o n t i n e n t

Bank

B

121

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and Trust

Company Vault Space Enlarged
N extension to the vault work in
the building formerly occupied
by the Illinois Merchants Trust Com­
pany of Chicago, just prior to the con-

A

usual two combination locks and a
large four-movement time clock. Both
door and vestibule are thoroughly
safeguarded against every known
method of attack that might be em­
ployed by the burglar or the mob.
At either side of the vault, rec­
tangular doors that correspond in every
detail of defensive strength to the
main entrance, provide additional en-

trances, and at the back of the vault
is the opening which has been made
for the extensions completed just prior
to the merger mentioned above.
The passage-way to this new section
is barred by a grille and gate, and the
entrance is protected by a massive cir­
cular vault door which is a duplicate
of the door at the main entrance to
the vaults. In addition, a twelve inch
door has been provided for an addi­
tional trunk vault, and a ventilating
system similar to that in the old vaults,
has been installed in the new bank
vault.
This ventilating system provides re-

G u a ra n ty T r u s t C o m p a n y
of N e w Y o r k
140 Broadway

Main entrance to safe deposit vault,
Continental Illinois Bank and Trust Co.

solidation of the Illinois Merchants
Trust Company and the Continental
National Bank and Trust Company as
the Continental Illinois Bank and
Trust Company, gives the merged in­
stitutions the additional facilities of
1150 square feet of floor space as well
as 1,230 new safe deposit boxes and
two new vault doors.
The additions were made by the
Herring-Hall-Marvin Safe Company
which built and installed the main
safety deposit and cash vaults a few
years ago.
The main safety deposit vault, which
originally had a floor space of 4,000
square feet and contained 25,000
bronze-surfaced boxes, is approached
through the three gates of a grille.
Back of the middle gate is the main
vault entrance which consists of a mas­
sive circular door and vestibule hav­
ing a clear opening seven feet two
inches in diameter. This immense en­
trance, with a total weight of fiftyfour tons, is fitted with a door twen­
ty-one inches in net thickness.
Viewed in connection with its bolt
frames, this door has a total mass
measurement to the eye of more than
two feet and a half from front
to back. When closed, the door is
locked into the vestibule by means of
twenty-four bolts, each four inches in
diameter, which are checked by the

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

LONDON

P A R IS

BRUSSELS

L IV E R P O O L

HAVRE

ANTW ERP

Condensed Statement, March 2 2 , 1929

RESOURCES
Cash on Hand, in Federal Reserve Bank,
and Due From Banks and Bankers..................... $171,031,148.15
U. S. Government Bonds and Certificates..........
75,558,497.66
Public Securities ............................................................
7,365,759.22
Other Securities ............................................................
21,767,078.93
Loans and Bills Purchased.........................................
457,304,383.21
Real Estate Bonds and Mortgages...........................
327,976.66
Items in Transit W ith Foreign Branches..............
8,276,114.39
86,854,137.54
Credits Granted on Acceptances...............................
Real Estate ......................................................................
9,675,655.75
Accrued Interest and Accounts Receivable..........
8,327,996.24
$846,488,747.75

LIABILITIES
Capital ...................................................... $40,000,000.00
Surplus .................................................... 50,000,000.00
15,078,324.08
Undivided Profits ...............................
$105,078,324.08
Accrued Dividend ..........................................................
Outstanding Bills ..........................................................
Bills P ay a b le....................................................................
Accrued Interest, Reserve for Taxes, etc..............
Acceptances ....................................................................
Deposits ..................................................$600,589,620.35
Outstanding Checks ........................... 39,252,769.79

1,445,000.00
624,965.00
3,000,000.00
9,643,930.99
86,854,137.54

639,842,390.14
$846,488,747.75

122

M

SHREVEPORT
A n Industrial
Center
GREAT many people are
i ncl i ned to think of
Shreveport purely as an oil and
lumber town, with very little
else in the way of industries.
It is true the oil companies, the
oil refineries, and the lumber
concerns are outstanding in­
dustries of Shreveport.
A

the second
largest glass plant in the
world is situated at Shreve­
port, large fertilizer companies,
packing houses, oil field sup­
plies, and many other industries
of sufficient size to entitle the
city to consideration are located
here.
H

A

ow ever,

p p r o x im a t e l y

20 0

manufacturing concerns
are now operating in Shreve­
port, with an annual output of
over $41,000,000 and the list of
different types of products dis­
tributed through wholesalers
and manufacturers includes
1,500 different classifications.
S UCH figures clearly estab­
lish Shreveport’s claim to
the title of “Industrial Center
of North Louisiana, South
Arkansas, and East Texas.”

id - C o n t i n e n t

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M a y, 1929

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movable hinged air ducts which enter
the rectangular door entrances when
the vault doors are open. These ducts
are connected with a distributing sys­
tem within the vault which insures a
constant supply of fresh air at a fixed
temperature.
The principal bank vault is also lo­
cated in the basement of the building
and is built with concrete walls, rein­
forcement and lining of the same
thickness and construction as those of
the safety deposit vaults. Entrance
to the main bank vault is through a
rectangular door and vestibule exact­
ly like those in the side entrances of
the safety deposit vault.

W. C. Pylant, cashier, W. W. Jones
and E. R. Campbell, assistant cashiers.
The recent statement of the Farmer-

ville State Bank of Farmerville shows
total resources of more than $670,000,
deposits in excess of $590,000 and cap­
ital of $30,000. Since the surplus and
profits are more than the capital, the
bank is an honor roll bank.
Bank debits in New Orleans for the

month of March totaled $340,691,000
as compared with $307,021,000 for the
corresponding period in 1928. Bank
debits for the first three months of
1929 showed an increase of $57,651,000 over the same period last year.

iim iiiim iiiiim iiim iiiiiiiiiiiiiiiim iiiiiiiiiiiiiiJ iiiiiiiiiiiiim iiiii

L O U IS IA N A

H. H. Hoag, manager of the Jen­

NOTES

nings Branch of the Calcasieu Nation­
al Bank, has announced that the new
building has been opened.

im iiiiiiim iiiiiiiiiiiim iiiiiiim iiiiiiiiiiiiiiiiiiiiiiiiim iiiiiiiiiim i

The recent statement of the Plant­

ers Bank and Trust Company of
Haynesville shows total resources in
excess of $2,700,000, deposits of more
than $2,500,000 and capital stock of
$100,000. Since surplus is $100,000,
the bank is an honor roll bank. Offi­
cers of the bank are: A. H. Southern,
president; F. E. Rankin, active vicepresident; C. E. Miller and S. L. Beene,
vice-presidents; J. G. Rankin, cashier.

Tracy L. Harrel has been elected a

director of the Bank of Winnfield to
succeed G. P. Long, who died recently.
A. G. Goodyear has been elected a

director of the Whitney-Central Bank
of New Orleans.
R. B. Womack,

The recent statement of the Bank

The recent statement of condition of

of Coushatta shows total resources in
excess of $890,000, deposits of approx­
imately $775,000 and capital of $100,000. Officers of the bank are: E. M.
Campbell, president; B. S. Stephens
and P. C. McLemore, vice-presidents;

ABLE

TO

A N Y W H E R E

68, president and

organizer of the Peoples Bank of Chat­
ham, Jackson Parish, died recently.
the Bank of Commerce and Trust
Company of Mansfield shows total re­
sources in excess of $3,100,000, de­
posits of more than $2,600,000 and cap­
ital of $200,000. Officers of the bank

SERVE
IN

THE

YOU
W O RLD

Capital & Surplus

*25 , 000,000
*

8

?

Commercial
National Bank
SHREVEPORT, LOUISIANA


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

T H E

N A T I O N A L

S h aw m u t B a n k
OF

B O S T O N

May, 1929

M

are : E. T. Robinson, chairman ; Ben
Johnson, president; R. T. Moore,
G. F. Provost and Frank Hunter, vicepresidents; W. F. Moore, cashier; J.
C. Coyle and Hall Peyton, assistant
cashiers.
111111111111111111111111111111111111111111111111111111111111111111111111111111111

A LA BAMA

NOTES

III! I IMI I III! l l l l l l l l l l l l l l l l l l M i n i IIIII 11III II 11III m i l l III III IMI 11 INI IIII

E.

W.

McLeod

has

been

elected

president of the Huntsville Bank and
Trust Company of Huntsville, succeed­
ing J. B. Woodall, resigned. Mr. Mc­
Leod has been vice-president of the
Henderson National Bank for the last
eight years.

id -C o n t i n e n t

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consolidated with the Bancamerica Cor­
poration.
Directors of the Traders National
Bank of Brooklyn have also met and
approved the agreement to consoli­
date with the Bank of America. Their
stockholders will also meet on May 16
to ratify the agreement.
The combined capital funds of the
Bank of America and Bancamerica
Corporation after consolidation will
be over $127,000,000, as compared to
$77,000,000 on December 31, 1928.
The capitalization will consist of 1,373,637 shares of $25 par value, hav­
ing a book value of approximately $92
per share, or an increase of about 20

per cent over the book value of $77
per share on December 31, 1928.
Headquarters of the merged insti­
tutions will be at 44 Wall Street,
which has been the location of the
Bank of America since 1812.

Studebaker

Com m ercial

Car

Sales Gain 9 3 Per C ent
Commercial car sales by Studebaker
Corporation during the first quarter
of 1929 increased 93 per cent over the
same period of last year, A. R. Erskine, president, stated recently. A
large portion of this increase he at­
tributed to sales of the new straight
eight bus introduced in January.

The First National Bank of Mont­

gomery is remodeling and making an
addition to its building.

FIRST NATIONAL BANK

The Merchants and Farmers Bank

of Gordo recently reopened for busi­
ness.

Bank

of

Am erica

and

BIRMINGHAM, ALABAMA
Capital
Surplus
Resources Over

Blair

National M erg er A p p r o v e d
The Bank of America consolidation
with Blair National Bank has now
had the formal approval of the direc­
tors of the two institutions, follow­
ing a meeting of directors of Blair
National Bank. Stockholders of the
Bank of America and of the Blair
National Bank will hold meetings si­
multaneously May 16 for the purpose
of ratifying the action of the direc­
tors.
Blair National Bank was recently
formed to take over the banking as­
sets of Blair & Co. The securities
business of Blair & Co., Inc., will be

$

1 ,5 0 0 ,0 0 0 .0 0
3 ,0 0 0 ,0 0 0 .0 0
4 9 ,0 0 0 ,0 0 0 .0 0

A Bank for Banks and Bankers as well as for
Corporations, Firms and Individuals
O F F IC E R S:
OSCAR W E L L S, President
K. W. B E R R Y, Vice-President
E. C. W O L T E R S D O R F , Ass’t Trust Officer
THOS. B O W R O N , Vice-President
PA U L A N G E L L, Ass’t Cashier
CHAS. F. ZU K O SK I, JR.,
W. D. R OBERTSON , Ass’t Cashier
Vice-President and Trust Officer
W. C. O’ F E R R A L L , Ass’t Cashier
F. S. FOSTER, Cashier
W A D E F LE E T W O O D , Ass’t Cashier
B. F. C LOW DU S, Auditor

New Orleans’
Oldest dSank

Welcomes the Opportunity
to serve banks and their
customers at the port o f
New Orleans

Established 1831

^CAN AL
B

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

a n k

a n d

T

r u s t

o f ¿ N fiw O r l e a n s

C

o.

Oklahom a Bankers to Meet at
Oklahoma City on May 21*22
A recent extension of the Frisco
c i t y , host on May
By ED. OVERHOLZER
lines from Quanah to Uloydada, Texas,
21 and 22 to the annual conven­
is opening this great livestock and
President, Oklahoma City
tion of the Oklahoma Bankers Asso­
agricultural territory to Oklahoma
Chamber o f Commerce
ciation, will present to the delegates
City merchants, wholesalers and man­
then assembled one of the most in­
teresting pictures of rapid, yet sound lines and a highway hard surfaced over ufacturers. Added impetus to the de­
development in all lines of any city all but about 15 miles is the Seminole velopment of this area as a part of
oil field, largest producing field in the Oklahoma City’s natural trade terri­
in the United States.
tory is given by the proposed Carlsbad
Situated in the heart of a rich agri­ world.
Cavern Highway, offering the shortest
cultural section as varied in its pro­
ITHIN six miles of the heart of route from Oklahoma City to El Paso,
duction as any like area to be found
the business district in Okla­ Texas. Prom Quanah to El Paso this
anywhere, Oklahoma City also is rapid­
ly becoming the center of the vast oil homa City is a well producing around road is now 75 per cent hard surfaced
producing area which is leading the 4,000 barrels daily of high grade pe­ and financed for hard surfacing.
Mid-Continent field in gross output.
troleum. The derrick of this well and
Construction of rail
O k l a h o m a c it y ’s
growth in popu­
extensions into the rich
lation has jumped 21,West Texas p l a i n s
651 during the past
country and promise
year, according to fig­
of early completion of
ures just released by
hard surfaced h i g h the R. L. Polk Co.,
ways into this and
publishers of city di­
other adjoining terri­
rectories.
tory, give Oklahoma
The total now is
City an excellent trib­
182,743 compared to
utary trade territory.
161,092 a year ago.
Such statements as
the foregoing mean lit­
The 1920 census figures
tle, however, especially
gave Oklahoma City a
to the “ hard-headed
population of 91,295.
banker, ’ ’ unless back­
On April 22, 1889, the
ed by facts and figures.
present site of the
Oklahoma consistent­
city was a bare prairie,
ly ranks s e c o n d o r
which blossomed into
third in the production
a tent and shack city
of the country’s two
A section of Oklahoma C ity’ s wholesale district.
of 10,000 by nightfall
major crops— c o 11 o n
with the opening of
and wheat. A 15-min­
ute ride by auto from Oklahoma City those of more than 35 others started Oklahoma to settlement. Skyscrapers
will give the visiting banker a view since the discovery, may be seen from and beautiful homes have now taken
of cotton and wheat growing in ad­ the windows of any of the larger the place of these crude temporary
hotels and office buildings of. the city. domiciles.
joining fields on the same farm.
Building permits serve as a barom­
Oklahoma produces more than half New wells producing either oil or gas
of the broomcorn grown in the world are being completed almost every day. eter of business conditions and in the
A circle drawn around Oklahoma case of Oklahoma City indicate healthy
and 60 per cent of the United States
crop. It ranks third in grain sor­ City with a 75-mile radius would in­ growth.
Total of permits has exceeded the
ghums, fourth in pecans, sixth in pea­ clude within its circumference an area
nuts, second in turkeys and seventh in producing approximately one-third of $1,000,000 mark for 23 consecutive
the nation’s output of oil and about months with one exception, August,
grapes among all the states.
1927. The total of March permits in
Oklahoma City is the seventh largest 80 per cent of the state’s total.
Daily increase in oil development to Oklahoma City was $2,104,280. The
livestock shipping center in the coun­
try. It also is the center of an area the north, west and south adds to the city has led the state and the entire
in which the dairy and poultry indus­ importance of Oklahoma City as a cen­ Tenth Federal Reserve District in
building permits since the first of the
tries are developing rapidly with un­ ter for this great industry.
All main lines of railroads entering year.
limited possibilities for future grain.
Total building permits for 1928 were
Oil
and Oklahoma are synonymous inOklahoma radiate from Oklahoma City,
the minds of many people, and prop­ helping to make this point the largest $18,158,635, giving the city the rank
erly so. Within 70 miles of Oklahoma distributing center of the state, as well of second among all cities of the en­
tire Soiitliwest. Building already in
City and connected with it by rail as the geographical center.

O

klahom a

W

1 24


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

May, 1929
sight for 1929 exceeds $21,000,000.00.
The recent report of Bradstreet
Company shows no other city in the
United States the size of Oklahoma
City having a larger amount of hank
clearings. This city’s total was $1,568,022,224.
The Southwestern Bell Telephone
Co. has constructed a 16-story build­
ing here during the past year. Mont­
gomery Ward & Co. is excavating
for a 10-story building. Arrangements
have been completed for the construc­
tion for the Bowman-Biltmore Hotel
Co. of a 25-story, $3,500,000 hotel.
Other large concerns are investing
many millions of dollars in Oklahoma
City in construction of large buildings.
Any city with such a record of de­
velopment as is Oklahoma City’s pre­
sents many interesting features to the
visiting banker. In addition to the
business development side, there are
many things to interest the visitor in
the way of recreation, side-trips, etc.
A 70-mile auto drive will take the
visitor to the heart of the Seminole
oil field. The famous Miller Brothers
101 Ranch is but a little more than
100 miles distant. About 100 miles
to the south is the Arbuckle Mountain
section of great scenic beauty. The
Kiamichi region in southeast Oklahoma
is a fishing ground of uncelled oppor­
tunity for the angler. Thirty-three
miles to the north at Guthrie is the
largest building exclusively devoted to
Masonry in the world.
About 35 miles to the west at Port
Reno is the U. S. Army’s largest re­
mount station and 120 miles to south­
west is Fort Sill with its school of fire
and near it Medicine Park, a beautiful
summer resort.
These are but a few of the points
to interest the visitor to Oklahoma
City.
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M

id - C o n t i n e n t

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posits of more than $30,000,000 and
capital of $2,500,000.
The Capital Hill State Bank of
Oklahoma City has increased capital
from $25,000 to $50,000.
The building of the First National
Bank of Frederick is being remodeled.
The recent statement of condition of
the Farmers State Bank of Ames
shows total deposits in excess of $160,000 and loans of $117,000, capital, sur­
plus and special reserve is $26,000.
Officers of the bank are: S. T. Goltry, president; S. R. Bowman, vicepresident; I. E. Hall, cashier.

R. E. Leavitt has been elected cash­
ier of the Federal National Bank of
Shawnee.
The recent statement of condition of
the Exchange National Bank of Tulsa
shows total resources of more than
$54,000,000, deposits in excess of $48,000,000 and capital of $2,000,000.
Since surplus and undivided profits of
$2,700,000 exceed the capital it is an
honor roll bank. Combined capital,
surplus and undivided profits of the
Exchange National Bank and the Ex­
change Trust Company total more than
$5,800,000 and the combined deposits
are in excess of $51,000,000.

oAn Im portant Occasion
O K L A H O M A B A N K E R S ASSIST
ST A T E C O N V E N T IO N
O K L A H O M A C I T Y , M A Y 21-22

SECURITY NATIONAL BANK
H EAD Q U A R TE R S for all you Bankers who like
to be where a lot of other good fellows congregate
O K L A H O M A C IT Y is well worth a visit.

A good

convention program is being arranged.
Come see us!

O K LA H O M A NOTES
m m iiiiM iiim iiiim m iim iim iiiiiiiiiiiiiim m iiim im iiiim m m

The recent statement of the First
National Bank of Muskogee shows to­
tal resources in excess of $8,000,000,
deposits of over $7,000,000 and capital
stock of $500,000.
W. C. Tucker has succeeded Homer
Hoffman as president of the Citizens
National Bank of Pawhuska.
John A. Smith, active vice-president
of the First National Bank of Ada,
has resigned.
The recent statement of condition
of the First National Bank and Trust
Company of Tulsa shows total re­
sources in excess of $33,500,000, de
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

S E C U R IT Y
N A T IO N A L B A N K
O K L A H O M A C IT Y , OKLA.

Serving N early 200 Banks

126

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id -C o n t i n e n t

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anker

The recent statement of condition of
the First State Bank of Tuskahoma
shows total resources in excess of
$136,000, deposits of more than $116,000 and capital of $15,000. G. E.
Glendening is president of the bank.

and capital of $100,000. Officers of
the bank are: L. B. Jackson, presi­
dent; H. C. Hughes and G. L. Berry,
vice-presidents; R. B. Thrift, cashier;
H. P. Johnson and H. F. Dodd, as­
sistant cashiers.

New officers of the Noble County
Bankers Association are: Ora Hall,
cashier of the Exchange Bank of
Perry, president; E. E. Blake, Citi­
zens State Bank of Morrison, vicepresident; Robert Wilson, First Na­
tional Bank of Perry, secretary.

The recent statement of condition of
the Washita Valley Bank of Fort Cobb
shows total resources of more than
$470,000, deposits in excess of $420,000
and capital of $25,000. Officers of the
bank are: Maye S. Myers, president;
D. L. Burket, vice-president; Margaret
Burket, cashier.

The recent statement of the Amer­
ican National Bank of Sapulpa shows
total resources of more than $1,400,000, deposits in excess of $1,200,000

The Prague National Bank at Prague
has increased its capital stock from
$25,000 to $50,000.

BERMUDA BOUND
-v/pleasuM

h ij) Jpmn the i/siit

May, 1929
The recent statement of condition of
the First National Bank of Hammon
shows total resources in excess of
$320,000, deposits of more than $280,000 and capital of $25,000. Officers
of the bank are: J. P. Thurmond,
president; S. T. Thurmond, vice-pres­
ident, W. A. Lewter, cashier; A. M.
Jones, assistant cashier.
Gail Corbett has been elected assist­
ant cashier of the First National Bank
of Britton.
The Farmers National Bank of Fort
Gibson has changed its name to the
First National Bank.
W. H. Wells has been elected presi­
dent of the First National Bank of
Beaver and John Miles has been elect­
ed cashier.
Officers of the Farmers and Mer­
chants Bank of Catoosa are: G. D.
Davis, president; J. F. Blair, vice-pres­
ident; Geo. S. Mays, cashier; Howard
Dearston, assistant cashier.
The recent statement of condition
of the First State Bank of Dustin
shows total resources of more than
$180,000, deposits in excess of $165,000
and capital of $15,000. Officers of the
bank are: D. W. Johnston, president;
Wm. Johnston, vice-president; W. N.
Melton, cashier; D. W. Peozotto, as­
sistant cashier.
J. D. Armour has resigned as assist­
ant cashier of the Pauls Valley Na­
tional Bank at Pauls Valley.
The recent statement of condition
of the First National Bank of Chatta­
nooga shows total resources in excess of
$200,000, deposits of more than $160,000 and capital of $25,000. Officers
of the bank are: T. G. Shaffer, presi­
dent; Squire Humble, vice-president;
F. C. Minton, cashier.

rJ ,H E R E

The American National Bank at
Ardmore has recently formed a trust
company in affiliation with the bank
which will be known as the American
Bank and Trust Company.

are two " B erm u d a s” —

with en joy m en t aplenty o n the
Ship as w ell as o n the Islan d . . . .
Y o u r winter vacation can start any
W e d n esd ay or Saturday w hen you
s te p

aboard

th e

fa m o u s

"F o r t

V ictoria” o r the new 2 0 ,0 0 0 ton

Swimming Puoi
Ms. Bermuda

m otorsh ip "B e r m u d a .”
ROUND T R IP
FARES FROM

70

Inclusive Rates
on Application

T h e B E R M U D IA N A . . . T h e S T . G E O R G E H O T E L
C en tres o f B e rm u d a ’ s Social an d Sp ortin g A ctivities
For literature, reservations, etc., address

F I TBermuda
l l XJ^ine
I iS S
34 W h ite h a ll S t. ( where Broadway begins) 563 F ifth A v e., N ew Y o rk . or any Authorized agent


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Federal Reserve Bank of St. Louis

The recent statement of condition of
the First National Bank of Britton
shows total resources in excess of
$300,000, deposits of more than $260,000 and capital of $25,000. Officers
of the bank are: R. M. Whisler, pres­
ident; S. L. Shintaeffer, vice-president;
J. Ross Wildman, cashier; Gail Cor­
bett, assistant cashier.
J. W. Shofner has been elected a
vice-president of the Capital State
Bank of Oklahoma City.
The Anadarko Bank and Trust Com­
pany is the new name of the Anadarko
National Bank of Anadarko.

May, 1929

M

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of Eastern Arkansas at Forrest City
has been started.

A R K A N S A S
NOTES
111111111111111111111111111111111111111111111111111111111111111111111111111111111
Troy Ramsey has been elected cash­
ier of the Bank of Lead Hill to suc­
ceed Jas. A. Hudspeth. Mr. Ramsey
was formerly connected with the First
State Bank of Marshall.

id - C o n t i n e n t

James H. Penick, cashier of the W.
B. Worthen Company, Bankers, Little
Rock, has announced the appointment
of Harold L. Haider as manager of the
savings department and outside repre­
sentative of the bank.

The recent statement of condition of
the North Arkansas National Bank of
Batesville shows total resources of
more than $780,000, deposits in excess
of $630,000 and capital stock of $100,000. Officers of the bank are: A. B.
Banks, president; J. C. Hail, vice-pres­
ident; F. T. Hunter, vice-president
and cashier; Théo. C. Justis, assistant
cashier.

L. S. Meyers has been elected pres­
ident of the DeWitt Bank and Trust
Company with Tom Davis as vice-pres­
ident and cashier and E. B. LaFarge,
vice-president.

A full line of
been adopted by
Rock and North
long to the Little
Association.

service charges have
the banks of Little
Little Rock that be­
Rock Clearing House

The Interstate National Bank of
Helena has purchased outright the
First National Bank of that city in a
deal involving approximately $2,000,000.
The Pocahontas State Bank and the
Randolph County Bank, the two larg­
est banks of Randolph County, have

L. R. Dearing and Miss Cora Doug­
las have been elected assistant cash­
iers of the First National Bank of
DeWitt.
The recent statement of condition
of the Bank of Bauxite at Bauxite
shows total resources in excess of
$139,000, deposits of over $115,000 and
capital stock of $20,000. Officers of
the bank are : A. B. Banks, president ;
Robert F. Lambeth, vice-president ; W.
A. Jennings, cashier; Mrs. LucyYoung, assistant cashier.
I.
E. Moore has been elected a di­
rector of the Farmers and Merchants
Bank of Rison.

H ourly M a il Service

New officers of the Poinsett County
Bankers Association are: Joseph Dean,
cashier of the Bank of Tyronza, presi­
dent ; A. J. Sharp, cashier of the
Farmers and Merchants Bank and
Trust Company of Marked Tree, vicepresident; J. M. Thompson, cashier of
the Bank of Harrisburg, secretary and
treasurer.

National Park Bank is located
across the street from the City Hall
Station o f the Post Office, and its transit
departm ent has m essengers constantly
bringing cash letters from correspondents
as soon as they arrive in N ew York.
'H E

■

The Citizens State Bank of Monette
has been reorganized. New officers of
this bank are: L. W. Finch, president;
W. D. O ’Farrell, vice-president; John
V. Hancock, cashier.
The Coming Bank and Trust Com­
pany and the First National Bank of
Corning have been consolidated. Of­
ficers of the consolidated bank are:
F. B. Sprague, president; Charles R.
Black, vice-president; Ewell Vandover,
cashier.
The Bank of Hartman, the Bank of
Clarksville, the First National Bank,
Clarksville, and the Farmers National
Bank of Clarksville have adopted a
service charge of 50 cents per month
on all accounts having a daily average
below $50.
Work on the new home of the Bank

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

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128

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been merged with E. Dalton, chairman
of the board; Dr. J. W. Brown, presi­
dent ; Ben A. Brown, vice-president;
J. D. Wells, cashier.
The Bank of Dermott and the Ex­
change Bank and Trust Company of
Dermott have been merged.
H. M. Jacoway and Henry Donham,
active vice-presidents and members of
the board of directors of the Peoples
Trust Company of Little Rock, have

id - C o n t i n e n t

B

May, 1929

anker

resigned as active officers of the bank.
A. B. Merritt, cashier of the Bank
of Sherrill, has been elected chairman
of the Jefferson County Bankers Asso­
ciation.
W. C. Hudson, president of the Na­
tional Bank o f Arkansas at Pine Bluff,
has been elected to head the Jefferson
County Cattle and Development Asso­
ciation.

B A N K O F N E W S O U T H W A L E S , A U S T R A L IA
E S T A B L IS H E D 1817

With which is amalgamated T H E W E S T E R N A U S T R A L IA N B A N K
Paid-Up C a p ita l....$ 37,500,000
Reserve fund............ 29,500,000
Reserve Liability of
P ro p rie to rs.......... 37,500,000
$104,500,000
=
$444,912,925

Aggregate Assets
Sept. 30, 1928

General Manager, A L F R E D C H A R L E S D A V ID S O N .
H E A D O FF IC E , George Street, Sydney, New South Wales.
L O N D O N O FFIC E , 29 Threadneedle Street, E. C. 2.
549 BRANCHES AN D AGENCIES in the Australian States, Federal Territory,
Zealand, Fiji, Papua, Mandated Territory o f New Guinea, and London.
AGENTS AN D CORRESPONDENTS THROUGHOUT THE W ORLD.

New

A U S T R A L IA
Population, 6,300,000; Area, 2,974,581 square miles; Sheep, 104,267,100; Cattle, 11,964,000;
Horses, 2,123,000; Imports, $740,024,445; Exports, $143,055,559.

Annual Value of Australia’s Products
Agriculture, $491,475,000; Pastoral, $596,860,000; Dairying, $234,899,800; Mining, $120,037,000; Manufacturing, $2,043,465,000; Total, $3,486,736,800
F O R E IG N B IL L S C O L LE C TE D — Cable remittances made to, and drafts drawn on Foreign
places DIR E C T. Circular notes issued. N E G O T IA B L E T H R O U G H O U T T H E W O R LD .

St. Louis Agents: N A T IO N A L BANK OF COMMERCE


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Federal Reserve Bank of St. Louis

Neill Ross has resigned as cashier
of the Clark County Bank at Gurdon
and Irving A. Blakely has been elected
to that position.
With bank savings per inhabitant in
the United States increasing 113.5 per
cent from 1918 to 1928, the state of
Arkansas leads all other states of the
nation with a per capita increase of
245.5 per cent for the period, accord­
ing to a table published recently by
the University of Arkansas Bulletin
of Public Service.
Work has been started on the new
home of the Merchants and Farmers
Bank of Junction City.
W. E. Lenon, chairman of the board
of the Peoples Trust Company of Lit­
tle Rock, has been elected president
of the Little Rock Clearing House As­
sociation. Other officers elected were:
Gordon N. Peay, chairman of the board
of the W. B. Worthen Company, Bank­
ers, vice-president; Perry Simpson,
cashier of the Central Bank, secretarytreasurer.
The recent statement of condition of
the First State Bank of Hatfield shows
total resources of more than $68,800,
deposits in excess of $48,000 and cap­
ital stock of $15,000. Officers of the
bank are: W. E. Watkins, president;
Mark P. Olney, vice-president; James
B. Rogers, cashier.
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiimmiiiiiiiiiiiii

KANSAS

NOTES

I IMII IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII

The Shawnee State Bank and the
Citizens State Bank, both of Topeka,
have been merged under the name of
the latter.

A ty p ica l industrial alcohol plant at
N ew O rleans

New Orleans
X X X III
Industrial Alcohol
N ew O r le a n s produced during the
year June 1927 to June 1928, exactly
4 2 ,1 4 4 ,3 1 3

p r o o f g a l l o n s o f com­

mercial alcohol, and s u p p lie d 52%
o f th e

to ta l

u sed

b y the United

States. W ith plant capacities for man­
ufacturing 108,353,856 gallons annually

The Chautauqua State Bank and the
Peru State Bank have been merged.
The Peoples State Bank and the
First National Bank, both of Rich­
mond, have been merged.
The Farmers State Bank of Scottsville opened May 1 with a capital of
$20,000. Lester Shamburg is cashier.
The First National Bank of Neodesha has been reorganized and the
new officers are: W. S. Pettit, chair­
man of the board; W. J. Small, presi­
dent; E. L. Chapman, vice-president;
C. M. Kimball, Sr., vice-president.

and storage f a c i l i t i e s for 5 ,2 5 9 ,7 6 8
gallons, New Orleans occupies a leading
position in the commercial
alcohol industry.

Hibernia Bank
NEW

CEh

Trust Co.

O R L E A N S , U .S.A .

Improvements are being made on the
building of the Caney Valley Nation­
al Bank at Caney.
Leslie W. Robinson, a director of
the Union Stockyards National Bank
of Wichita, is dead.
John T. Stewart has been elected a

M id -C o n t i n e n t B

M a y , 1929

129

anker

director of the First National Bank
of Wichita.

First

Will Marshall, cashier of the State
Bank of Leon, has been elected presi­
dent of the Butler County Bankers As­
sociation.

Effective as of April 1 , 1929, the
consolidation of two large Tampa
banks, the First National and the Na­
tional City, creates the largest na­
tional bank in south Florida. Total
resources are over $21 ,000 ,000 .
R. J. Binnicker, of the First Na­
tional, will continue as president of
the merged institutions and Charles
A. Faircloth, president of the National
City, has been elected a vice-president
of the First National. The name will
continue to be that of the First Na­
tional Bank of Tampa.
In 1883 when Tampa was a vil­
lage of but 800 population, T. C. Tal­

W. S. Booth, cashier and member of
the board of directors of the First Na­
tional Bank of St. Francis, has re­
signed from both offices and J. E. Uplinger, vice-president, has been elected
cashier. Ned Baker, assistant cash­
ier, has been elected vice-president and
member of the board, and Mrs. Bertha
McNitt has been elected assistant cash­
ier.
Maurice H. Wooden and Dr. G. M.
Wooden have purchased the control­
ling interest in the Farmers and Mer­
chants Bank of Argonia.

National and National

City o f Tampa M erge

iaferro and his associates founded the
Bank of Tampa, later to become the
First National. Capital was $25,000.
From that beginning the First Na­
tional has grown with south Florida,
aiding in the development of its ter­
ritory and distinguished by its pro­
gressive views, yet financially sound
and with conservative management.
The two institutions will occupy the
large modern banking quarters of the
First National in the thirteen-story
First National building completed but
two years ago. The First National
Corporation will move to the third
floor of the building to afford neces­
sary room for the expansion of bank­
ing activities.

T E E F IR S T G E N U IN E C H E C K P A P E R

The First National Bank of Augusta
recently moved into a new building.

THE

Otto Herold, vice-president of the
First National Bank of Seneca, has
been elected president of the bank to
fill the vacancy caused by the death of
Bracey Curtis. T. Richardson, cash­
ier, has been elected vice-president and

N EW SU P E R -SA FE TY

cashier.

HAS R E M AR K ABLE

F O L D A B IL IT Y

C. E. Wilson, assistant cashier of
the Cedar Point State Bank, has re­
signed.
The Farmers and Merchants Bank
of Washington has opened with A. W.
Moore as president and T. H. Eves as
cashier.
The Peoples State Bank and the
First National Bank, both of Leroy,
have been merged.
E. R. Morgan has been elected vicepresident and director of the Union
National Bank of Wichita.
Earle McKnown, has been elected
assistant cashier of the Commercial
State Bank of Bonner Springs.
The First National Bank of Chanute
has installed a night depository.
Glen H. Hill, president of the Kan­
sas State Bank of Ottawa, has been
elected president of the Franklin
County Bankers Association and Ralph
S. Hanes, assistant cashier of the same
bank, has been elected secretary.
John W. Sponable, assistant cashier
of the Miami County National Bank
at Paola, has been elected a director
of the bank.

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Federal Reserve Bank of St. Louis

T h e most frequent abuse a check
receives is folding. With the modern
widespread use of checks has come
multiplied handling and the need for
check paper that can withstand re­
peated creasing without weakening.
The new Super-Safety Paper, de­
signed for check use exclusively, has
remarkable ability to withstand con­
tinued sharp folding. Its foldability is
five times that of the usual check
paper. Bend and crease this fine new
paper as you will. Crush the fold flat
with your thumb-nail. It will take a great
deal of such punishment without a sign
of weakening, tearing, or cracking.
Other features of this superlative
new kind of check paper are its dura­
bility — at least seven times longer lived
than ordinary check paper . . . its fine
writing surface — smooth as satin, yet a
surface on which ink instantly takes
without blurring or running . . . its
strength — long tough fibers and little
sizing give this paper powerful resis­
tance to cracking or tearing.
Depositors appreciate distinction in

the checks their bank supplies. The new
Super-Safety Paper will be appreci­
ated both for its excellent appearance
and for the service of protection it pro­
vides for depositors’ funds. Erasure or
the use of ink eradicator is immediately
exposed. And to prevent counterfeiting,
The Todd Company guards every sheet
of the new Super-Safety Paper as the
government guards bank-note paper.
The coupon will bring you samples
and prices of this first genuine check
paper. See this handsome new SuperSafety Paper, available in six attrac­
tive colors— an unusually distinctive
paper available from no other source
but The Todd Company. Sold only on
individual order. Surprisingly low in
cost. A distinction for your bank, a
protection for your depositors. Every
banker will be interested in seeing the
handsome new Su p e r-S a fe ty Check
Paper and in putting it to comparative
tests. Complete information on request.
Return coupon today. Bankers’ Supply
Division, The Todd Company. (Est.
1899.) Rochester, Chicago, New York,
St. Paul, Denver, Dallas, Birmingham.

S u p p ly D iv isio n
5-29
T H E TODD C O M P A N Y
1 1 5 1 U niversity Avenue, Rochester, N. Y .
S e n d m e m o re in fo r m a t io n a b o u t
Super-Safety Checks m ade of the new
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B a n k ers’

Nam e of B a n k ____________ _____________ ■
Name of Officer______________ -________ —
Street___________________ —--------- ,-------Town ____________________S ta te ------------ .

130

M id - C o n t i n e n t B a n k e r

M a y , 1929

........................................................................... .........................................................................■■■■■■■■..................... ■ ■ i n n i ..................... m i ..................... ..... .............................. .

K en tu cky

Bank

N ews

.......................................................I..................m i ....................................... u l u l i l i ..................u m .......................... m i n i l i .......... u m ..............................................

A new building is to be erected for
the Cecilian Bank of Elizabethton.
The Newport National Bank of Cov­
ington recently held a formal opening
of its new banking home.

Frank C. Bell has been elected vicepresident and a director of the Bank
of Commerce at Lexington.

The recent statement of condition
of the Farmers National Bank of Som­
J.
W. Kinnaird has been elected pres­erset shows total resources in excess
ident of the Farmers and Merchants of $1,500,000 and surplus and profits of
$105,000.
Bank of Edmonton to fill the vacancy
caused by the death of J. A. Hamilton.
The recent statement of condition
The Bank of Lewisport recently held
formal opening of its new banking
home.
The First National Bank of Clinton
has established a trust department
with Miss Nancy A. Day as trust of­
ficer.
The recent statement of the FirstHardin National Bank of Elizabethton
shows total deposits in excess of $2 ,100,000 and total resources of over
$2,700,000.
William F. Steele has been elected
president of the Security Bank and
Trust Company of Maysville to suc­
ceed Capt. Horace J. Cochran, who
died recently.

of the Citizens National Bank of Som­
erset shows total resources of more
than $650,000 and deposits in excess of
$470,000.
Wm. Beckman has been elected a
director of the Foster Banking Com­
pany of Augusta to fill the vacancy
caused by the death of R. Y. Hill.
W. E. Keith has been elected presi­
dent of the Bank of Hopkinsville to
fill the vacancy caused by the death of
J. E. McPherson.

Judge Rollen Hurt has been elected
president of the Bank of Columbia.
Oscar Schwartz has been elected a
director of the Pearl-Market Bank and
Trust Company of Covington.
The National Bank of Lancaster re­
cently completed improvements to its
building.
The quarters of the Commercial De­
posits Bank of Winchester are being
enlarged.
The building of the Commercial
Bank at Liberty was recently de­
stroyed by fire.
The recent statement of condition of
the State National Bank of Maysville
shows total resources of nearly $3,000,000, deposits of over $2,450,000
and capital of $150,000. Since the
surplus and undivided profits exceed
the capital, it is an honor roll bank.
The Louisville Trust Company has
increased its capital stock from $1 ,000,000 to $1,750,000.

The capital of the First National
G.
W. Davidson & Company, Bank­ Bank of Murray has been increased
ers, and the Auburn Banking Com­ from $50,000 to $100,000 and the
pany, both of Auburn, have been con­ shares of the bank split into units of
solidated under the name of the lat­ $20 each instead of $100 as they for­
ter.
merly were.

L IB E R T Y BANK
AND TRUST
COMPANY

In Louisville

FIRST NATIONAL BANK
with affiliated group including

KENTUCKY TITLE TRUST COMPANY

is your logical city corre­
spondent. Prompt collec­
tion service. Requests for
confidential in fo r m a tio n
answered promptly.

L O U I S V I L L E

Nearly 100,000 Depositors


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Federal Reserve Bank of St. Louis

fO ldest 'N a tion a l dlank in the S outh’

M ay,

131

M id -C o n t i n e n t B a n k e r

1929

F. M. Holeman has been elected vice- with total assets of more than $800,president and a director of the Citi­ 000 .
zens Bank and Trust Company of
The commercial and savings depart­
Madisonville.
ments of the Inland Bank and Trust
Company have been merged under the
m i n ii ii i l i u m m i n i m i i m i m i i m i n i m i n i m i ii M i i i m i i i 11111" 1111
name
of the State Savings and Trust
I N D I A N A
NOTES
Company.
i n ......... ..... ....................................... ..........i n ............ m i .......... ..... ................m i .........

The Springport Bank has been pur­
chased by the Mt. Summitt State Bank,
and the two banks have been consol­
idated.

The Clark County State Bank of
Jeffersonville has started a new indus­
trial loan department.

Joseph Been has been elected a di­
rector of the Merchants and Farmers
Bank of Logansport.

Bluffton is soon to have two nation­
al banks.

The building of the Peoples State
Bank of Whitestown was recently de­
stroyed by fire.

The Farmers and First National
Bank and the Citizens State Bank,
New Castle, have installed new burglar
alarms.

Walter M. Haynes, lb, president of
the Peoples Bank of Portland since
1903, died recently at his home in that
city.
The Bargersville State Bank has been
organized with a capital of $25,000.
The Speedway State Bank has been
organized with a capital of $25,000.
The name of the Farmers Savings
Bank of Muncie has been changed to
the Lincoln Bank and Trust Company.
The Farmers and Merchants Bank
and the State Bank of Otterbein, both
of Otterbein, have been merged under
the name of the Union State Bank and

The capital of the First Trust and
Savings Bank of Hammond has been
increased from $500,000 to $1,000,000
and the surplus from $350,000 to $1,-

000,000.
Ray Martin, cashier of the Citizens
State Bank of Orleans, has been ap­
pointed county key banker for Orange
County.
The Farmersburg State Bank which
closed its doors a few weeks ago has
opened again for business.
L. E. Smith, 72, vice-president of
the First National Bank of Vevay,
died recently at his home in that city.

Complete
Investment Service

The Union State Bank of Morris­
town is planning to erect a new bank­
ing home.

The recent statement of the Indiana
National Bank of Indianapolis shows
total resources in excess of $32,000,000 , deposits of over $25,900,000 and
capital stock of $2,000,000. Since the
surplus and profits exceed the capital,
it is an honor roll bank.

Sloan Elected a Director o f
Guaranty Trust
William C. Potter, president of the
Guaranty Trust Company of New
York, on April 18, 1929, announced
that Matthew S. Sloan had been elect­
ed a director of the company. Mr.
Sloan is president of the New York
Edison Company and all of its affil­
iated electrical companies.
Automatic revolver— the earth.

The

HANOVER
N A T IO N A L

BANK

o f the

CITY

OF

NEW

YORK

H EAD OFFICE
PINE A N D N A SSA U STREETS
E S T A B L IS H E D

J a m e s G W il l s o n &

1851

Co.

IS O S O U T H T i m * S T R E E T
L O U IS V IL L E . K E N T U C K Y

C A P IT A L $10,000,000
Our nationwide investm ent w ire system en­
ables us to offer our Bank clients the best
buying and selling prices on securities in
any recognized market. W e invite you to
make use o f this service.


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Federal Reserve Bank of St. Louis

SU RPLU S and P R O FITS $22,000,000

Io -

M id -C o n t i n e n t B a n k e r

May, 1929

J. Russell W h ite W ill M anage St. Louis
Office o f Fenner & Beane
ENNER & BEANE, members of
the New York Stock Exchange
and other principal exchanges, have
secured a long term lease on the
ground floor of the Landreth Building,
4th and Locust Streets, St. Louis, and
extensive preparations are now under
way for the opening of a St. Louis
branch in these quarters on or about
May 15. The new office will be in
charge of J. Russell White, formerly
manager of the New York office of the
firm.
The home office of Fenner & Beane
is located at 60 Beaver Street, New
York, and divisional headquarters are
maintained at 818 Gravier Street, New
Orleans. The New York office is un­
der the direction of A. C. Beane, and
the New Orleans office is under the
direction of C. E. Fenner, both of
whom are senior partners and organ­
izers of the firm.
The new St. Louis office will be con­
nected with the firm’s extensive pri­
vate wire system covering the East,
South, Southeast and Southwest, with
branches and connections in more than
100 cities.
A feature of the St. Louis office will
be that as a branch of the New York

F


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Federal Reserve Bank of St. Louis

office, its activities will be devoted ex­
clusively to a commission brokerage
business—by that is meant that there
will be, at least for the present, no
sales department interested in street
selling of securities.
The firm, however, maintains in New
York a statistical department that
fiom time to time makes recommenda­
tions concerning the purchase and sale
of listed securities. This is not done,
however, until the statistical depart­
ment has made an extensive investiga­
tion of the company in question and
it is noteworthy that over a period of
time, recommendations made by this
depaitment have been uniformly ac­
curate. The services of this depart­
ment will be available to clients and
prospective clients without charge.
The new quarters for the St. Louis
office are being finished throughout in
genuine American Walnut. The New
^oik Projector Company will install
a screen of the largest size to show
sales on the New York Stock Ex­
change, and several tickers will be in­
stalled to furnish quotations from
other markets, including St. Louis
Stock Exchange, Chicago Stock Ex­
change, New York Curb, New York

J . R U S S E L L W H IT E

Cotton, St. Louis Grain and others.
Private wires will supply quotations
on coffee, sugar, cottonseed oil and
other commodity markets. In addi­
tion, there will be a broad tape carry­
ing the full market news service of
Dow, Jones & Co. through their Chi­
cago connection, the Chicago Journal
of Commerce.
Mr. White, who will manage the new
office, will be assisted by R. N. Mc­
Leod, who is being transferred from
the firm’s office at Independence, Kan-

SOOj
Room s [
800 Baths

Old Fashioned Hospitality
in a M odern Setting
In the Grand Central Section, 10 minutes
from Penn. Station, near Tim es Square,
Fifth Avenue shops and important com­
mercial centres and theatres.

cRadio in 8very Room_>
Single R oom s $3 to $5 per day
D ou b le R oom s $4 to $6 per day
i

S. G regory T aylor,

P r e sid e n t

O scar W . Richards,

M a n ager

SiilaMCNTCLAlP
N E W Y O R K C IT Y

May, 1929
sas, and by bis brother, R. L. White,
formerly manager of the firm’s office
at Dallas, Texas. There will also be
a stall of five or six customer’s men.
Mr. J. Russell White is a native of
Richmond, Virginia, and first entered
the brokerage business in that city
when he went with Thomas Branch &
Company. Later he spent eight years
with the Associated Press at Washing­
ton, D. C., and some time in Denver
where he was night news manager for
the Associated Press in charge of the
entire Pacific Northwest territory.
He reentered the brokerage business
in San Francisco in 1910 with E. F.
Hutton & Co., and remained there un­
til 1920 when he became identified with
the New York office of Fenner &
Beane, of which he became manager in
1925, remaining there until the pres­
ent time except for occasional trips
to supervise the organization of new
branch offices.
Mr. White now intends to make his
permanent residence in St. Louis, and
says that the friendliness and hospi­
tality of St. Louisans have made him
feel very much at home. Mrs. White
accompanied him to St. Louis, and at
present they are making their home at
the Coronado Hotel. Mrs. White was
formerly Miss Rosemary Shrove, of
Lexington, Kentuckj7.

133

M id - C o n t i n e n t B a n k e r

W eilern M illers M utual Fire Insurance
Com pany H as H a d Splendid Growth

Frank Fuchs to Address
A . / . B. Delegates
Frank Fuchs, advertising manager,
First National Bank in St. Louis, and
a director of the Financial Adver­
tisers Association of America, has been
selected as one of the principal speak­
ers for the American Institute of
Banking convention to be held in
Tulsa, Oklahoma, June 9 to 13.
Mr. Fuchs will address the delegates
on “ Advertising and Its Results.”
It is estimated that several hundred
will attend the convention, including
many of the country’s prominent
bankers.
The recent statement of condition of
the Lowell Bank, West Florissant and
Warne Avenues, St. Louis, shows to­
tal resources in excess of $4,850,000,
deposits of over $4,000,000 and capital
of $200,000. Since the surplus and
undivided profits exceed the capital it
is an honor roll bank. Officers of the
bank are: Wm. Koeneman, president;
Henry Mueller, vice-president and
cashier; L. L. Will, assistant cashier;
U. W. Klie, assistant cashier.
The advice of men who have made
fortunes is worth more to you than
that of those who tell fortunes.

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Federal Reserve Bank of St. Louis

C H A R L E S H. R ID G W A Y

ITH an increase in assets of ap­
proximately $45.000 during the
past year, and an. increase in income
of approximately $75,000, the Western
Millers Mutual Fire Insurance Com­
pany of Kansas City has made a splen­
did record under the capable manage­
ment of Charles H. Ridgway, secre­
tary. The company also increased its
insurance in force from approximately
$32,000,000 to approximately $42,000,000 during the year.
Since its organization in 1883 the
company has paid more than $2,300,000 in losses, without a single law­
suit. In addition, savings to policy­
holders since organization amount to
more than $3,430,000. The company
now has assets of more than $685,000.
In addition to carrying risks on
flour mills and elevators, the company
now handles general lines of insurance
on all classes of property. In addition
to fire insurance the company now
writes lightning, hail and windstorm,

explosion, water damage and sprink­
ler leakage.
Charles H. Ridgway is secretary and
general manager of the company. L.
S. Mohr is president, A. J. Eisenmayer,
vice-president, and E. D. Lysle is
treasurer.
Directors of the company include:
L. S. Mohr, Zenith Milling Company,
Kansas City; R. R. Clark, Aunt Jemi­
ma Branch of the Quaker Oats Co.,
St. Joseph, Missouri; H. S. Cowgill,
Cowgill Flour Mills, Inc., Carthage,
Missouri; A. J. Eisenmayer, Eisen­
mayer Milling Co., Springfield, Mis­
souri; George G. Sohlberg, Acme Mill­
ing Company, Oklahoma City; F. G.
Crowell, Hall-Baker Grain Company,
Kansas City; E. D. Lysle, J. C. Lysle
Milling Company, Leavenworth, Kan­
sas; William Kelly, Wm. Kelly Mill­
ing Co., Hutchinson, Kansas; R. C.
Jackman, Bowersock Mills & Power
Co., Lawrence, Kansas, and Charles H.
Ridgway, of Kansas City, secretary of
the company.

134


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Federal Reserve Bank of St. Louis

M id -C o n t i n e n t B

May, 1929

anker

a M enace
to B an ks
A recent incident in the eternal war
between banks and crime occurred in
a town in the state of Washington in
November, 1928, when thieves took
from a bank a nigger-head safe and kid­
napped a machinist to open it. Amongst
the loot was $2,820 worth of American
Express Travelers Cheques.
The secret service organisation of
the American Express was notified to
trail the robbers and working from
photos, three dangerous criminals were
identified. Within two weeks the first
American Express Cheque was cashed
at Joplin, Mo., and a fortnight later two
of the crooks were arrested with some
of the Cheques.
By January 12th two others of the
gang were arrested in Buffalo, N. Y.
They had $240 of the stolen American
Express Travelers Cheques and subse­
quent finger printing revealed that they
were none other than Whitey Walker
and Fred Nave. Walker was wanted
for bank robbery and the murder of a
bank president in Colorado City, and
Nave for the murder of three police «►
officers in Borger, Texas, and numerous
other bank robberies in Oklahoma.

The entire gang is now behind the
bars— permanently removed as a men­
ace to society. Crooks, as a rule, do not
attempt to negotiate or tamper with
American Express Travelers Cheques
for the American Express protects its
paper to the fullest extent. It is very
often revealed that persons stealing
American Express paper are dangerous
criminals or are often wanted by banks
on other charges. Their apprehension
and arrest is thus an outstanding serv­
ice to banks.

*

f r safety
J and spendability

A m e r ic a n

express
<Jravelers cheques
Steamship tickets, hotel reservations, itin­
eraries, cruises and tours planned and
hooked to any part o f the world by the
Am erican Express Travel Department

Texas Bankers W ill Meet
Galveston May 14 4 5 4 6
LL Galveston is proud that the
honor of entertaining the 1929
convention of the Texas Bankers As­
sociation has been bestowed upon this
city. Every one of our 63,000 inhab­
itants extend a sincere welcome and
invitation to make use of the facilities
offered by one of America’s leading
ports and resorts. That you may be
more fully acquainted with these fa­
cilities, we will deal briefly on a few
of the major subjects.
As every Texan knows Galveston is
one of the oldest cities in the state,
but despite this fact, its real develop­
ment has only be­
gun during the past
twenty-five y e a r s .
In that period of
time it has taken
its place among the
foremost ports of
the United States.
It is already recog­
nized as one of the
leading resorts of
this country and is
f as t becomi ng
known as an indus­
trial and commer­
cial center of im­
portance. The cour­
age shown by its
citizens in building
the magnificent sea­
wall, 7% miles long,
to protect the city
from any possible
damage and raising the grade of the
city some seventeen feet to further in­
sure safety, has had the admiration of
the world. But in addition to these
fortifications, the city has done many
things of a constructive nature that
could be properly boasted of in a city
of much larger size.
The achievements of a city are usual­
ly of primary importance to itself first,
secondly to the surrounding territory
and finally to the nation as a whole,
but in the case of Galveston, the situa­
tion is practically reversed. The fact
that Galveston exists, saves the ship­
pers of the midwestern United States
more than ten million dollars annually
in freight rates whether the shipper
uses this port or not. Investments in
Galveston are largely made with a view
to increase transportation efficiency

A


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Federal Reserve Bank of St. Louis

By E. S. H O LLID A Y
Chamber o f Commerce, Galveston

and thereby render a better service to
the interior people. The sincerity of
purpose on the part of the people is
more than apparent when one consid­
ers the fact that this port holds every
worthwhile record for transportation
efficiency and cargo dispatch in the
country. These records include quick
release of rail equipment, handling
cargo through the terminal, quick turn­
around of ships, minimum loss and

damage claims, and other records of
lesser importance. The secret of suc­
cess at Galveston, and the quick han­
dling of cargo lies in the close coopera­
tion between rail and water carriers.
TEAMSHIP service at the port is
not excelled by any other port on
the Gulf Coast, and in all probability
it is second only to New York. More
than sixty-five steamship lines radiate
from Galveston to 126 major ports of
the world maintaining a service com­
mensurate with the demands of the
shipper.
The coastwise service from the port
is excellent. Two lines operate be­
tween Galveston and New York, and
the third going through the Panama
Canal to the Pacific coast ports.
Galveston has a developed section of

S

waterfront slightly more than two and
a half miles long, or 13,750 feet. With­
in this area, however, by the slip plan,
there are 41,832 linear feet of wharves
within a thirty foot depth at the
docks. The undeveloped waterfront
adjacent to deep water amounts to
nearly twenty miles. Under the slip
system of development the potential
water frontage of Galveston is equiva­
lent to sixty-one miles.
The terminal facilities are of mod­
ern type and have been developed with
a view of facilitating the dispatch of
vessels. A ship loading here receives
her entire cargo at
one loading berth,
and it is not neces­
sary to make sev­
eral expensive shifts
to numerous piers
in order to receive
her cargo. Freight
is handled, in many
cases, direct f r o m
car to ship, and
when a ship leaves
its berth in l e s s
than thirty minutes
it is on the high
seas, a performance
possible in but few
American ports.
OR th e p a s t
numb e r
of
years Galveston has
had the distinction
of being the largest cotton port in the
world, handling annually for export
from 3,000,000 to 4,000,000 bales of
the staple. It also ranks first in the
handling of grain and sulphur.
In the total volume of foreign and
domestic commerce this port ranks
year after year among the first three
ports in the United States. Several
times it has attained the rank of sec­
ond port and always maintains this
position when foreign exports alone are
taken into consideration. Its business
runs nearly every year around the
mark of 10 ,000,000 tons, and is usually
valued at from $750,000,000 to $1,000,000,000.

Galveston’s banking and financial
institutions are among the largest and
most progressive in the state. They
offer exceptional facilities to business
interests engaged in foreign commerce.
135

136

M id - C o n t i n e n t B

They are a tower of strength for local
commerce and the development and the
accommodations which they offer can
not be excelled in the South.
Bank clearings reflect the financial
capacity of Galveston, and are an ac­
curate index to the enormous volume
to traffic which moves through this
city each year. Transactions handled
through Galveston Clearing House As­
sociation during 1928 reached an ag­
gregate of $1,804,222,000.
During the past five years, Galves­
ton has made the following gains rela­
tive to the city’s growth: Population,
30.1 per cent; telephone installations,
28.5 per cent; water connections, 31.7
per cent; postal receipts, 25.9 per cent;
school census, 34.1 per cent.
The romance of Spanish ages coupled
with American enterprises and art to­
gether with beautiful natural resources
in the form of climate, golfing, riding,
polo, boating, fishing, hunting and
other outdoor sports, go to make Gal­
veston one of the most interesting
winter and summer retreats on the
American continent.
Galveston has enjoyed a healthy
growth of population, industrial ac­
tivity, port activity and building ac­
tivity. It has beautiful paved streets,
excellent sanitary facilities, and its
schools rank second to none. It has
good churches, numerous industries,
parks, recreation facilities and social


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Federal Reserve Bank of St. Louis

anker

M a y, 1929

life, and these are indicators of its
prosperity.
Again, Texas Bankers, Galveston
bids you welcome!
m i i i i i i m i m i i i i m m i m m i M i i i m m i i i i i i i m u ii iiu iii iii i hi iiiiiin

T EX A S

NOTES

lllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllljy

The recent statement of condition of
the Republic National Bank of Dallas
shows total resources in excess of $46,000 ,000 , deposits of more than $36,600,000 and capital of $3,500,000.
The First State Bank of Kleburg
has merged with the First National
Bank of Mesquite and the latter in­
stitution has assumed all of the as­
sets and liabilities of the former.
The recent statement of condition of
the Surety State Bank of Blue Ridge
shows total resources in excess of
$114,000, deposits of more than $75,000 and capital of $25,000. Officers
of the bank are: J. A. Barnett, presi­
dent; A. H. Eubanks, vice-president;
Jesse Harben, cashier.
A new bank is being opened at
Rowlett with a capital of $17,500.
Everett S. Owens, president of the
North Texas National Bank of Dallas,
has been elected president of the Dal­
las Clearing House and B. S. McKin­
ney, vice-president of the American

Exchange National, has been elected
vice-president.
The First State Bank of Bryan is
planning to erect a new two-story bank
building.
Frank Kell has been elected a mem­
ber of the board of the American Ex­
change National Bank of Dallas.
The Security State Bank of Com­
merce has been opened with a capital
of $35,000. Officers of the bank are:
John T. Jackson, president; J. C. Lindley and W. T. Peck, vice-présidents;
J. M. Barnon, cashier.
The Citizens National Bank of
Brownwood recently moved into its
new six-story banking home.
The recent statement of condition of
the Buna State Bank at Buna shows
total resources in excess of $88 ,000 ,
deposits of more than $65,000 and cap­
ital of $20,000. J. I. Mixson is pres­
ident and D. E. Guntser is cashier.
The First State Bank of Carrolton
has been reorganized and is now
known as the Farmers and Merchants
State Bank. Officers are: R. L. Thorn­
ton, president; J. T. Rhoton, vice-pres­
ident; F. H. McMurray, cashier.
The recent statement of condition of
the South Texas Commercial Nation­
al Bank of Houston shows total re-

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137

M id - C o n t i n e n t B a n k e r

May, 1929
sources of more than $30,600,000, de­
posits of more than $27,000,000 and
capital stock of $1,500,000.

Plans are being made for the erec­
tion of a new $250,000 home for the
Austin National Bank of Austin.

E. M. Regan has been elected a di­
rector of the Security State Bank of
Pecos.

The capital stock of the Plainview
National Trust Company has been in­
creased from $10,000 to $25,000.

C. L. Culvert has been elected as­
sistant cashier of the State National
Bank of Groom.

The Farmers and Merchants State
Bank of Ladonia opened for business
recently with a capital stock of $25,000.

F. D. Newton has been elected vicepresident and cashier of the First Na­
tional Bank of Jacksonville to suc­
ceed C. F. Boles, who recently died.

The Citizens Industrial Bank of
Austin has increased its capital stock
from $25,000 to $50,000.
The recent statement of the Cibolo
Bank of Cibolo shows total resources
in excess of $240,000, deposits of more
than $195,000 and capital of $25,000.
Officers of the bank are: A. G. Janszen, president; Rev. C. Kniker, vicepresident; O. W. Rawe, cashier; Elmer
O. Schlather, assistant cashier.

The building of the First National
Bank of Edinburg is being remodeled.
The Fanning County State Bank and
the State National Bank, both of Bondan, have been consolidated.
George Kohler has resigned as a di­
rector of the First National Bank of
Mission.

The recent statement of condition
of the Blanco National Bank of Blan­
co shows total resources in excess of
$310,000, deposits of more than $230,000 and capital of $25,000. Since the
surplus is equal to the capital it is an
honor roll bank. Officers of the bank
are: G. W. Wall, president; Percy T.
Brigham, vice-president; Chas. E.
Crist, cashier.

I George D. Campbell, chairman of
the board of the Guaranty State Bank
of San Antonio, died recently in an
automobile accident.
S. C. Hogsett has resigned as cash­
ier of the Waggoner National Bank of
Vernon.

th a t’s a ll
you need
to k n o w /
E p p le y H o t e l s a re
k n o w n th rou g h ou t
th e
co u n try fo r
h o s p it a lity , c o u r ­
t e s y , s e r v ic e .
If
it ’ s a n E p p l e y
H o t e l , “ th a t’ s all
y o u
n e e d
to
k n o w !”
O m a h a , N e b ..........
L in c o l n , N e b ..........
N o r fo lk , N e b .. . .
S i o u x C ity , l a . . . .
M a r s h a llt o w n , la .
C o u n c il B lu f f s , la ,
C e d a r R a p id s , la .
S i o u x F a lls , S . D .

H otel
H o te l
H o te l
H o te l
H otel
.H o t e l
H otel
.H o t e l
H otel
H o te l
H o te l

The recent statement of condition
of the Buckholts State Bank of Buckholts shows total resources in excess
of $200 ,000, deposits of more than
$175,000 and capital of $25,000. Offi­
cers of the bank are: T. F. Hardy,
president; T. F. Criswell, cashier; Geo.
T. Graves, vice-president; Ed Kolba,
assistant cashier.
The First National Bank of Port
Arthur is planning a new three-story
banking home.
The building of the Guaranty Bank
of San Antonio is being remodeled.
The recent statement of condition
of the First State Bank of Barry
shows total resources of more than
$96,000, deposits in excess of $67,000
and capital of $25,000. Officers of the
bank are: W. T. Woodruff, president;
A. T. Watson, vice-president; L. C.
Heaton, cashier.
The recent statement of condition of
the Anson State Bank of Anson shows
total resources of more than $660,000,
deposits in excess of $580,000 and cap­
ital of $50,000. Officers of the bank
are: E. W. Harrell, president; C. B.
Brown and C. G. Rowell, vice-presi­
dents; B. L. Jones, cashier; A. A. Dun-

Playing Its Part in
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F o n t e n e lle
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L in c o ln
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Operated by

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Federal Reserve Bank of St. Louis

S haw -Wa l k e r

P R E S I D E N T

O F F IC E S

~

O M AH A
3 0 7 N . 4th Street

No. 932J4

S T . L O U IS , M O .

138

M id -C o n t i n e n t B a n k e r

M a y, 1929

wody, Jr., and R. M. Harrel, assistant
cashiers.
The Hemphill State Bank and the
First National Bank of Hemphill have
been merged.

W R IT E for
FREE S A M P L E S

The recent statement of condition
of the Alba National Bank of Alba
shows total resources in excess of
$220,000, deposits of more than $150,000 and capital of $40,000. D. S.
Armstrong is cashier of the bank.
The First National Bank of Kosse
has recently been reorganized and
changed its name to the Kosse Nation­
al Bank. Officers are: J. J. Suttle,
president; C. 0. Robertson, vice-pres­
ident; W. A. Jones, cashier.

See H ow
M any o f the
Foremost Banks
Obtain Business
b a n k s h a v e d is c a r d e d
th e c o m m o n m e t h o d s o f
g e t t in g b u s i n e s s T h e b o o k e n ­
title d —

M

a n y

"N ew Business for Banks”
b y K e r m a n a n d G riffin
— s h o w s h o w m a n y o f th e
f o r e m o s t b a n k s a c tu a lly o b t a in
th e m o s t p r o fita b le b u s in e s s
f o r th e ir C o m m e r c ia l, S a v in g s ,
S a f e D e p o s it , B o n d , a n d T r u s t
D e p a r tm e n t s .
Every plan is illustrated by one or
m ore exam ples taken from the
records of fifty named banks.
The book is filled with specific
suggestions for large and small
banks.

You may examine this 326-page
book for five days without cost.
Then, if you decide to keep it,
remit $5. Please use coupon below.

P rentice-H all, In c.,
70 F ifth A venue, New York, N. Y .
W ithout obligation to me, you may
send me a copy of “ N E W B U S IN E S S
FO R B A N K S ,” for five d ay s’ F R E E
E X A M IN A T IO N . W ithin that time, I
w ill either remit $5 in fu ll payment, or
return the book to you.
Firm ...................................................................
(Please Print)
Name ............................................................... .
A ddress ............................................................


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Federal Reserve Bank of St. Louis

STA TEM EN T
OF TH E
O W N E R S H IP
M A N A G E M E N T , C IR C U L A T IO N , E T C .,
R E Q U IR E D B Y T H E A C T O F C O N ­
G R E S S O F A U G U S T 24, 1912,
Of Mid-Continent B anker published monthly
at St. Louis, M issouri for A pril 1, 1929.
State of M issouri, City of St. Louis— ss.
Before me, a notary public in and for the
State and county aforesaid, personally appeared
Donald H. Clark, who, having been duly sworn
according to law, deposes and says that he is
the publisher of the Mid-Continent Banker, and
that the following is, to the best of his knowl­
edge and belief, a true statement of the owner­
ship, management (and if a daily paper, the
circulation), etc., of the aforesaid publication
for the date shown in the above caption, re­
quired by the A ct of A ugust 24, 19 12 , embodied
in section 4 1 1 , Postal Law s and Regulations,
printed on the reverse of this form, to -w it:
1. T hat the names and addresses of the pub­
lisher, editor, m anaging editor and business
managers a r e :
Publisher, Donald H. Clark, 408 Olive Street,
St. Louis, Mo.
Editor, Donald H. Clark, 408 Olive Street,
St. Louis, Mo.
M anaging Editor, Paul Edwards, 408 Olive
Street, St. Louis, Mo.
Business M anager, Jam es J . W engert, 408
Olive Street, St. Louis, Mo.
2. T hat the owner is : ( I f owned by a corpo­
ration, its name and address must be stated
and also immediately thereunder the names and
addresses of stockholders owning or holding one
per cent or more of total amount of stock. I f
not owned by a corporation, the names and
addresses of the individual owners must be
given. I f owned by a firm, company, or other
unincorporated concern, its name and address,
as well as those of each individual member,
must be given.)
Commerce Publishing Company, stockholders
as fo llo w s: Donald H. Clark, 408 Olive Street,
St. Louis, M o .; Jam es J . W engert, 408 Olive
Street, St. Louis, M o .; G. D. M athews, 405
Ridge Bldg., K an sas City, Mo.
3. That the known bondholders, m ortgagees,
and other security holders owning or holding
1 per cent or more of total amount of bonds,
mortgages, or other securities a r e : ( I f there
are none, so state.) None.
4. T hat the two paragraphs next above, giving
the names of the owners, stockholders, and se­
curity holders, if any, contain not only the list
of stockholders and security holders as they ap­
pear upon the books of the company but also,
in cases where the stockholder or security hold­
er appears upon the books of the company as
trustees or in any other fiduciary relation, the
name of the person or corporation for whom
such trustee is acting, is g iven ; also that the
said two paragraphs contain statements em brac­
ing affiant’ s full knowledge and belief as to the
circumstances and conditions under which
stockholders and security holders who do not
appear upon the books of the company as trus­
tees, hold stock and securities in a capacity
other than that of a bona fide ow n er; and this
affiant has no reason to believe that any other
person, association, or corporation has any in­
terest direct or indirect in the said stock, bonds,
or other securities than as so stated by him.
D on ald H. C l a r k , P u b l i s h e r .
Sworn to and subscribed before me this 5th
day of April, 1929.
(M y commission expires Jan u ary 25, 1930.)
(Seal.)
C a t h e r in e M. B a r r e t t .

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1525 Olive Street
St. Louis, Mo.

The Mid-Continent Banker
is the personal journal of
Banks and Bankers
in 12 States

If You Can
Answer
These Questions
—and answer them correctly your invest­
ment profits will show immediate im­
provement.
( 1 ) Is the trend of stock prices up— or
down?
(2) Is this a time to buy
stocks; what stocks?

or

to

sell

(3) A re long or short term
best investment now?

bonds the

The coupon is fo r your convenience in
securing authoritative information. I f
the answers to these questions interest
you clip it now. There is no obligation.

BROO
K M IRE
ECONOMIC SERVICE, Inc.
IS W*mt 45th S c , H r«r Y ork
Please send free Bulletin M .B .
Name

...................................................................

Address

...............................................................

M id - C o n t i n e n t B

May, 1929
IND EX

TO

National Shawmut Bank, Boston, M a s s... 122
National Stock Yard s National Bank, Stock
Y ard s, 1 11 .................................... ....................... 31
Natural B ridge Bank, St. L o u is.................... 33
Normandy State Bank, Normandy, M o........
44
Northern Bank Note Company, C h ic a g o .... 104
Northern T rust Company, C h i c a g o . . . . . . . . 108
Northwestern Trust Company, St. L o u is ... 42

AD VER TISERS

A llyn & Company, A . C., Chicago...............
65
American Banks, Nashville, Tenn................. 94
American Express Co., New Y o r k .................... 134
Ames, Emerich & Company, C h icag o .......... 62
Anderson & Co., Lorenzo E ., St. L o u i s . . . . 52
A rt C raft Shops, Inc., St. L o u is................ 138
Bankers T rust Company, New Y o r k . . . . . .
Bank of Commerce & T ru st Co., M em phis..
Bank of New South W ales, Sydney, A u s­
tralia ............................................................ ........
Bank V ault Inspection Co., P hiladelp hia..
Batavia, Illinois, Banks .................... .................
Berkowitz Envelope Co., Kansas C ity ...........
Boatmen’ s National Bank, St. L o u is...........
Brokaw & Company, Chicago..........................
Brookm ire Economic Service, New Y o r k ..
Burnes National Bank, St. Joseph, M o ... .
B u rr & Company, George H ., St. L o u i s . . . .

49
1 16

Ohrstrom & Co., G. L ., New Y o r k ...............
Ottman & Company, E. H ., Chicago...........

128
93
98
138
30
63
138
27
55

Peoples Trust & Savings Bank, C h ic a g o ... 10 1
Piccadilly Hotel, New Y o r k ............................ 136
Prentice-Hall, Inc., New Y o r k ...................... 138
Prescott, W right, Snider Co., Kansas City 42
Reinholdt & Company, St. L o u is..................
Richards & Company, St. L o u is ...................
Rogers & Company, N. L ., P eo ria...............
Rudolph Guenther-Russell Law , In c., New
Y o rk ..........................................................
Ruppert & Company, H. L ., St. L o u is.........

Caldwell & Company, N ash ville.................... 54
Camp, Thorne & Company, Chicago................ 50
Canal Bank & Trust Company, New Orleans 123
Capital National Bank, Jackson, M iss......... 1 19
Chapman & Company, P. W ., C h ic a g o .... 53
Chase National Bank, New Y o r k .................... 1 1 4
City Bank, Kansas C ity ........... .......................... 34
Clay County State Bank, Excelsior Spgs., Mo. 46
Cody T rust Company, Chicago........................
59
Collinsville, Illinois, B an k s........................; . . 102
Columbus National Bank, Columbus, M iss. 120
Commerce T rust Company, Kansas C ity. . 26
Commercial National Bank, Shreveport, La. 122
Continental Illinois Company, C h ic a g o .... 56
Couden Syndicate, Elliott R ., St. L o u i s . . . . 64

Edw ards & Sons, A . G., St. L o u is ...............
80
Elm s Hotel, Excelsior Springs, M o................... 100
Eppley Hotels Company, Omaha, Nebr........ 137
Equitable Bond & M ortgage Co., C h icag o .. 77
9
37
69
38
105
123
117
96
1 19
32
130
113
3
2
114
109
1 14
86

81
126

Guaranty Trust Company, New Y o r k ......... 12 1
General M otors Acceptance Corp., New Y o rk 64
Grant State Bank, St. L o u is............................. 42
H alsey, Stuart & Company, Chicago.............
Hamilton National Bank, C h a tta n o o g a ....
Hanchett Bond Company, Chicago...............
H anover National Bank, New Y o r k .............
H erring-H all-M arvin Sa fe Co., Hamilton,
Ohio ........................................................................
Hibernia Bank & T rust Co., New O rlea n s..
Hoagland-Allum & Company, Chicago.........
Hotel Gatesworth, St. L o u is.............................
Hotel M ontclair, St. L o u is...............................

60
1 15
87
13 1
48
128
59
90
132

Inter-State National Bank, Kansas C i t y . . . . 27
Inter-State T rust & Banking Co., New O r­
leans ...................................................................... 1 18
Jefferson Bank, St. L o u is...................................
Jon es & Co., Edw ard D., St. L o u is...............

35
65

K ansas City Stock Y a rd s Co., Kansas City
Knight, D ysart & Gamble, St. L o u is...........

28
58

35
Laclede T rust Company, St. L o u is...............
Lacy Company, L . D., St. L o u is.................... 42
Lafayette South-Side Bank, St. L o u is......... 40
LaM onte & Son, George, New Y o r k ........... 95
Leach & Company, A . B ., Chicago................ 80
Lee Hotels, Robert E ., St. L o u is .................. 132
Liberty Bank & Trust Company, Louisville 130
Low ell Bank, St. L o u is.....................................
33
M ercantile T rust Company, St. L o u i s . . . .
M erchants Laclede Nat. Bank, St. Louis. . .
Middle States Bond & Investm ent Co., St.
Louis ............................................................
M ississippi V alley Company, St. L o u i s ... .
Mississippi V alley Trust Co., St. L o u i s . . . .
M orrison Hotel, Chicago...................................
M ortgage & Securities Co., New O rle a n s.. .
National
National
National
National

Bank
City
City
Park


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Federal Reserve Bank of St. Louis

81
90

82
86
87
61
87

St. Louis Bank Building & Equipment Co.,
St. Louis ............................................................. 4-5
St. Louis National Bank, St. L o u is............. 37
Scruggs, Vandervoort & Barney Bank, St.
Louis ...................................................................... 37
Seaboard National Bank, New Y o r k ........... 92
Security-First Nat. Bank, Los Angeles, Cal. 93
Security National Bank, Oklahoma C it y .. 125
Shaw-W alker Company, St. L o u is .............. 137
Smith, Moore & Company, St. L o u is........._. 51
Steinberg & Company, M ark C., St. Louis
................................................................ 71-2-3-4-5-6
Stern Bros. & Company, Kansas C ity ......... 34
Stifel, Nicolaus & Company, St. L o u i s ... . 66
Stock Y a rd s National Bank, Chicago......... 107
Strauss & Company, Robert S., C h ic a g o ... 68
Studebaker Corporation, South Bend, Ind. 25

D ’ Oench, Duhme & Co., St. L o u is .............. 82
D rovers National Bank, Kansas C ity ......... 29
Dwight, Illinois B an ks........................................ 106

Federal Land Bank, St. L o u is........................
Federal Su rety Company, Davenport, Iow a
Fid elity Bond & Mortgage Co., St. L o u is ..
Fid elity Nat. Bank & Trust Co., Kansas City
F irst Galesburg National Bank & T ru st Co.,
Galesburg, Illinois ...........................................
F irst National Bank, Birmingham, A la .........
F irst National Bank, Chattanooga, T e n n ...
F irst National Bank, C h i c a g o . . . . . ..............
F irst National Bank, Jackson, M iss............
F irst National Bank, Jefferson City, M o ...
F irst National Bank, Louisville, K y ............
F irst National Bank, M em phis.......................
F irst National Bank, St. L o u is.....................
F irst National Company, St. L o u is................
Fou rth-First National Bank, N ash ville.........
Forem an Banks, C hicago...................................
Fourth-Side National Bank, N ash ville........
Francis, Bro. & Company, St. L o u is .............
Fran k & Company, Albert, C hicago.............
Fu rn ess Berm uda Lines, New Y o r k .............

139

anker

6

35
70
83
23
91
78

o f Commerce, St. L o u is ... 142
Bank, St. L o u is........................ 41
Company, New Y o r k .............
79
Bank, New Y o r k .................... 127

Third National Bank, N ash ville..._ ............. 1 1 3
Thompson & Company, G. W ., C h ic a g o ... 77
Thompson Securities Corporation, John R.,
Chicago ............................................................... 61
Todd Company, Rochester, N. Y ................... 129
Traders National Bank. Kansas C ity ........... 33
True Securities Co., Chicago..........................
88
Union & Planters Bank & Trust Company,
Memphis ............................................; .............. 1 1 2
Union T rust Company, E. St. Louis, 1 1 1 . . . 41
Vandeventer National Bank, St. Lo uis. . . .

40

Wade, J r ., Festus J ., St. L o u is.................... 58
Waldheim Platt & Co., St. L o u is .................... 80
W alker & Company, G. H., St. L o u is......... 87
Western M illers Mutual F ire Ins. Co., K an ­
sas City, M o.......................................................... 36
W hitaker & Company, St. L o u is.................... 14 1
W illiams, M cRee & Co., St. L o u is.................... 46
W illson & Company, Jam es C., L o u isv ille .. 1 3 1
W ise Company, The J . H ., St. L o u is......... 47
Young & Bros., Inc., W. H ., St. L o u i s . . . .

84

Kansas Convention at
H ays , M a y 2 3 -2 4
Speakers will appear before the an­
nual meeting of the Kansas Bankers
Association at Hays, May 23 and 24
will include:
Dr. W. A. Lewis, president, Teach­
ers College, Hays, who will speak on
“ Why Hard Headed?”
H.
S. Busick, Jr., president, Kansas
Bankers Association, will deliver the
annual address of the president.
Harry H. Rogers, president, Ex­
change National Bank, Tulsa.
Frank W. Simmonds, deputy mana­
ger, American Bankers Association,
New York City, who will speak on
“ Group Action in Modern Banking.”
W. C. Robinson, chairman of the
board, Security National Bank, Arkan­
sas City, Kansas, who will speak on
“ Banking Today and Yesterday.”
H. W. Koeneke, the incoming bank
commissioner for Kansas.
C. Q. Chandler, chairman of the
board, First National Bank, Wichita.
Hon Victor Murdock, editor, Wich­
ita Eagle.

Convention Calendar
State Bankers Conventions
Arkansas at Little Rock,
May 2-3
Tennessee at Nashville
May 9-10
Texas at Galveston,
May 14-15-16
Mississippi at Biloxi,
May 15-16
Pennsylvania at Atlantic City,
May 15-16
Missouri at Excelsior Springs,
May 16-17
Oklahoma at Oklahoma City,
May 21-23
Kansas at Hays,
May 23-24
Alabama at Montgomery,
May 23-24
Ohio at Columbus,
May 22-24
Maryland at Atlantic City,
May 23-24
Georgia at Atlanta,
May 29-30
South Dakota at Rapid City,
June 6-8
Wisconsin at Milwaukee,
June 10-12
North Dakota at Minot,
June 11-12
California at Sacramento,
June 12-15
Minnesota at Minneapolis,
June 17-19
South Carolina at Greenville,
June 18-20
Illinois at Aurora,
June 19-21
Kentucky at Paducah,
June 20-21
Virginia at Old Point Comfort,
June 20-22
Michigan at Charlevoix,
June 24-27
North Carolina at Asheville,
June 25-27
Indiana at Evansville,
September 11-12
Other Conventions
Reserve City Bankers at Detroit,
June 10-13
Financial Advertisers Association
at Atlanta
American Bankers Association
at San Francisco,
Sept. 30-Oct. 3

Kentucky Wins First Rank In
Banker-Farmer Activity
ENTUCKY has been awarded first
place in the ranking of state
bankers associations’ agricultural com­
mittee activities made by the Agricul­
tural Commission of the American
Bankers Association, it has been an­
nounced by Director D. H. Otis, of the
Commission.
Out of a possible one thousand
points, Kentucky scores 832, the high­
est of any agricultural committee in
any state for 1928, the announcement
says. The scoring schedule is as fol­
lows: agricultural committee confer­
ence, 100 points; appointment of coun­
ty key bankers, 100 points; financial
support of agricultural work, 100
points; bankers’ agricultural meetings,
200 points; number of boys and girls
or farmers pursuing definite project
work through bankers’ efforts, 500
points.
“ Kentucky scored 100 per cent in
the first four items mentioned,” said
Director Otis. “ At its committee con­
ference every committee member and
officer of the association was present.
The Kentucky committee appointed a
county key banker for each county in
the state. The reports show an av­
erage of over $5 per bank used in
agricultural work by bankers in Ken­
tucky during the year. The record of
agricultural meetings attended by
bankers shows an average of more than
one banker for each bank in the state.
In regard to the project score, Ken­
tucky reported 383 farmers engaged in
definite work through the influence of
the bankers.
“ This score card as originated and
sponsored by the Agricultural Commis­
sion of the American Bankers Associa­
tion, represents an effort to apply a
‘ measuring stick’ to the activities of
agricultural committees of state bank­
ers associations for the purpose of
crediting these committees with work
actually accomplished and also fur­
ther to stimulate greater effort accord­
ing to the ideals of banker-farmer
work.
“ Because of the splendid showing
made by the Kentucky committee, the
Agricultural Commission invited it to
cooperate with the Kentucky College
of Agriculture in presenting an ex­
hibit at the Executive Council meet­
ing of the American Bankers Associa­
tion at Biloxi, Mississippi, last month.
Representatives of the committee and
140

K


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Federal Reserve Bank of St. Louis

the college will appear on the program
of the Commission’s meeting at that
time. ’ ’

livestock. We arranged automobile
tours, for over 3,000 farmers and rural
high school students from sixty-four
counties, which included visits to in­
C. DORSEY, vice-president Lib- dustrial plants in Louisville handling
j erty Bank and Trust Company,
farm products or manufactures for the
Louisville, Kentucky, who is a mem­ farm. They also included the state
ber of the Agricultural Commission of capitol and the College of Agricultural
the American Bankers Association, at Lexington.
president of the Kentucky Bankers As­
“ The committee secured a special
sociation and formerly chairman of its freight rate in the state on registered
breeding cattle in less than car lots
one-half the regular rate. It prepared
livestock advertisements for 50 rural
banks for use in their local papers in
place of cut-and-dried advertising.
We furnished speakers for luncheon
clubs and farmers’ get-together meet­
ings, maintained a livestock exchange
listing purebred livestock for sale and
cooperated with the fat stock shows in
Louisville. Last year through the ac­
tivities of the association registered
bulls were offered by breeders as prizes
to the boys and girls.
“ Of course all of our activities were
not devoted to livestock, but also to
crops, building up soil, etc. We de­
voted a lot of time in making con­
tacts between the farmers, bankers and
the Agricultural College. The farmers
and bankers are better acquainted with
the college and using it more than
ever before.
F. C. DORSEY
“ Our outstanding activity was our
President, Kentucky Bankers Association
livestock train, the ‘ Purebred Special,’
agricultural committee, expressed the visiting in 1927 and 1928, fifty-four
gratification of his organization at the counties and having an audience of
award, when asked to comment on it. over 70,000 people. Of course it would
‘ ‘ This is not just a spurt which Ken­ have been impossible to run the trains
tucky put on last year, but a well- without the cooperation of the Dairy
planned, consistent program extending Products Association, the stockyards,
over the last six years,” Mr. Dorsey the fertilizer manufacturer, the boards
said. “ We began by impressing upon of trade, luncheon clubs and the rail­
the farmers and bankers the value of roads. As a result of showing fine
purebred stock. As a beginning we cattle on these trains, over 1,500 farm­
placed 120 ten day old dairy bull calves ers requested assistance in locating
with farmers who had never before purebred livestock, many communities
used purebred, distributed in thirty- are now waging campaigns to eradicate
five different counties. Later we placed the scrub sire, more than 150 head of
registered breeding stock with farmers purebred livestock have been purchased
in fifty-four counties. Kentucky now by the communities visited and breed­
has three counties, out of five in the ers report an increased demand for
w’hole United States, that have no registered sires from those counties.
Magazines and periodicals with com­
scrub sires.
“ Our committee published 40,000 bined circulation over two million have
livestock letters, for the use of 110 published articles about the train.
“ We are now working on a cam­
rural banks on each bank’s own sta­
tionery and signed by its president or paign to increase the corn yield in
cashier to be sent to their customers, Kentucky and to bring about closer
dealing with the advantages of better touch with the county agents.”

F

M id - C o n t i n e n t B a n k e r

May, 1929


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