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How to Set up Reserves for Bad Debt Losses—Pas® https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis TRADING FLOOR, NEW YORK STOCK EXCHANGE "Cornerstone" of the Community • America's Local Banker • • The local banker is the pillar of his community . . . helping to turn the wheels of business with each transaction. The independent banking system has become a symbol of our American W a y of Life. By encouraging free enterprise in his community, the local banker fosters the economic system which has made America the strongest nation on earth. Throughout Iowa more than half of the banks (58%) are corre spondents of The Merchants National. This connection enables bankers to provide nation-wide service for their customers. Each member of the growing "network’' of Merchants National corre spondent banks strengthens their service by combining an intimate knowledge of their community with unexcelled facilities, reliable counsel and adeguate resources. THE MERCHANTS NATIONAL = I I A N K = O F F I C E R S JAMES E. HAMILTON, Chairman Executive Committee S. E. COQUILLETTE, Chairman of the Board JOHN T. HAMILTON II, President MARK J. MYERS, Vice President FRED W . SMITH, Vice President GEORGE F. MILLER, Vice President and Trust Officer MARVIN R. SELDEN, Vice President R. W . MANATT, Vice President L. W . BROULIK, Vice President PETER BAILEY, Cashier R. D. BROWN, Assistant Cashier O. A. KEARNEY, Assistant Cashier STANLEY J. MOHRBACHER, Asst. Cashier EVERETT C. PRATT, Assistant Cashier C. F. PEREMSKY, Assistant Cashier VICTOR W . BRYANT, Assistant Cashier JAMES E. COQUILLETTE, Assistant Cashier Cedar Rapids Iowa Member Federal Deposit Insurance Corporation N orthwestern Banker, published m onthly by the N orthw estern Banker Company, at 527 Seventh Street, Des Moines, Iowa. Subscription 35c per copy, $3.00 per year. Entered as Second Class M atter January 1, 1895, at the Post Office at Des Moines, Iowa, under A ct o f M arch 3, 1879. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3 SA Even to bankers and men accustomed to dealing in figures, it is difficult to visualize an y operation in terms of “ billions” . For e x am ple, without prior recourse to a pencil, you m ay be surprised to learn that if a fund started to accumulate Ja n u a ry first, 1 A . D. at the rate of $1 A MINUTE it would not reach the billion mark for over 1900 years — or to be specific, until April 29, 1902. It is c o n s e r v a t i v e l y e s t i m a t e d th a t this nation is now using more than A BILLION CHECKS A M O N T H - w e l l over 33,000,000 checks a day. This vast traffic indicates the tremendous impact of the check on the lives of our people — and its unique value to banks in their public relations programs. All of which e x plains w h y so m any banks specify La Monte, the standard of quality and safety in check protection. WAVY tttm ® Att. A LA/ÄÖNTJ; T»AÖ£-MAR* A Check Paper All Yov.r Own 1111 Thousands o f hanks and many o f the larger corporations use La Monte Safety Papers with their own trade-mark or design made in the paper itself. Such INDIVIDUALIZED check paper provides maximum protection against both altera tion and counterfeiting — makes identification positive. III l l l l l t t W i t t i l i l i i l M i i i l l i l S i S https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M : « fS llli Northwestern Banker, April, 1949 Qw m ^j J; ■S ^TéÎMjù^WUÉmmwin approval from the nation’s banks Over 1300 banks are winning customer goodw ill and speeding internal accounting with Burroughs Commercial Teller’s Machines. Modernize your teller operations with this fast-growing service. Call your Burroughs office today. T k tee y e c M ’ ex fijeu m cc ¿ n d ic a & j" A saving o f 20% in time needed to wait upon customers . . . bookkeeping department can pick up accumulated deposits and checks from tellers at any time, insuring continuous operation o f bookkeeping department . . . proofs o f day’s work arrived at quickly . . . automatically gives tellers and auditor a detailed machine posted blotter o f transactions . . . the amount o f each cashed check (the figures o f which may have been poorly written) is registered at the time o f cashing, giving the proof department, book keeper and statement clerk the exact amount for which the check was taken by the teller.” The Second National Bank Paterson, New Jersey ' 9/Ute than fajfyiMcd chvi evpetX aX i& n A .'' "O u r tellers can handle more customers in less time . . . lines move faster on busy days. Receipting o f deposits is particularly hastened when more than one duplicate is required. Tellers find these machines save time in proving at the close o f the day. They have a more complete journal record . . . which is helpful when they find it necessary to check for errors. Customers share with us the feeling that the use o f these machines has modern ized our method o f receipting for deposits.” City National Bank and Trust Company Kansas City, Missouri WHEREVER TH E R E ’S BUSINESS T H E R E ’S Northwestern Banker, April, 1747 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Burroughs To countless property owners, The Home is peisonified by the hard-working representative ri neighborly who takes an interest in their problems and their protection— the man who lives down the street, property insurance company reports -------- Directors-------L ewis L. C larke Banker C harles G. M eyer The Cord, M eyer Company W illiam L. D eB ost Chairman, Union Dime Savings Bank who serves on civic committees, the man who E dwin A. B ayles brings piompt financial relief to policyholders R obert G oelet when disaster strikes. That is The Home, in its G eorce M cA neny Lawyer most fundamental sense. Real Estate Vice Chairman, Wills & Trust Committee, Title Guarantee & Trust Co. G uy C ary Now, more than ever, The Home is a “ grass to the Public: Lawyer H arold V. S mith roots” company. Ten file-marine insurance com President H arvey D. G ibson panies which were previous affiliates, last year President, Manufacturers T'rust Company were merged into The Home. The balance sheet F rederick B. A dams ^ ^ ebster defines “ neighbor” as one who lives shown is the first complete one issued by the en- R obert W . D owling nearby; is associated with othei's on friendly larged Home organization. This is rightly of in G eorge G und terms. terest to the public, because The Home is by far H arold H. H elm Chairman o f Executive Committee, Atlantic Coast Line Railroad Co. President, City Investing Co. President, Cleveland Trust Co. By that definition. The Home is truly a neigh borly property insurance company. Through its the leading insurance protector of American homes and the homes o f American industry. President, Chemical Bank & Trust Co. C harles A. L ouchin Vice President & General Counsel I van E scott Vice President forty thousand representatives, The Home lives C. S tevenson N ewhall Chairman of Board, Pennsylvania Co. of Philadelphia in and serves cities, towns and hamlets in every P ercy C. M adeira , J r . state o f the Union. P resident President, Land Title Bank & Trust Co. E arl G. H arrison Lawyer J ohn A. S tevenson President, Penn Mutual Life Ins. Co. BälsnCG Sheet C hampion M cD owell D avis President, Atlantic Coast Line Railroad Co. December 31, 1948 W arren S. J ohnson A D M IT T E D ASSETS Cash in Office, Banks and Trust C o m p a n ie s ..............................................$ 31,027,607.07 United States Government B o n d s .................................................................. 107,440,297.48 Other Bonds and S t o c k s ................................................................................. 122,046,607.25 Investment in Associated C o m p a n y ............................................................. 6,871,511.16 First Mortgage L o a n s........................................................................................... 3,126.58 Real E s t a t e .......................................................................................................... 4,330,868.09 Agents" Balances, Less Than 90 Dtfys D u e ................................................... 10,811,751.20 Reinsurance Recoverable on Paid L o s s e s ..................................................... 706,975.90 Other Admitted A s s e t s ...................................................................................... 2,006,693.37 Total Admitted A s s e t s ............................................................................ $285,245,438.10 L IA B IL IT IE S Reserve for Unearned P r e m i u m s .......................................................................$141,729,267.00 Reserve for Losses ........................................................................................... 33,879,862.00 Reserve for T a x e s ................................................................................................ 9,000,000.00 Liabilities Under Contracts with \\ar Shipping Administration . . . . 2,888,128.21 Reinsurance R eserves........................................................................................... 1,493,633.18 Other L i a b i l i t i e s ................................................................................................ 2,417,432.63 Total Liabilities Except C a p i t a l ........................................................$191,408,323.02 C a p it a l.................................................................................$2 0 ,0 1 3 ,5 9 5 .4 9 S u r p l u s ............................................................................ 7 3 ,823 ,519 .59 Surplus as Regards P o l i c y h o l d e r s .............................................. 93 ,8 3 7 ,1 1 5 .0 8 T o t a l .......................................................................................................... $285,245,438.10 PROPERTY *THE HOME* IN S U R A N C E https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis President, Peoples Savings Bank & Trust Co. of Wilmington, N. C. R oger W. B abson Chairman of Board, Babson s Reports, Inc. R obert B. M eyer The Cord M eyer Company H enry C. B runie President, Empire Trust Company H arbin K. P ark • President & Director, First National Bank o f Columbus, Georgia B oykin C. W right Lawyer NOTES: B o n d s c a r r ie d at $8,143,395.33 Amortized Value and Cash $80,000.00 in the above bal ance sheet are deposited as re quired by law. All securities have been valued in accordance with the requirem ents o f the N ational Association of Insurance Commis sioners. Assets and Liabilities in Canada and Jamaica, B.W.I. have been adjusted to the basis of the free rate of exchange. Based on De cember 31, 1948 market quotations for all bonds and stocks owned, the Total Admitted Assets would be increased to $285,403,703.37 and the p o lic y h o ld e r s ’ surplus to $93,995,380.35. F IR E • M A R IN E A U T O M O B IL E Home Office: 59 Maiden Lane, New York 8, N. Y. The Home Indemnity Company, an affiliate, writes Casualty Insurance, Fidelity and Surety Bonds. 6 MPANY NATIONWIDE FIELD WAREHOUSING Lawrence warehouse receipts, issued on the borrower’s inventory, protect the lender with collateral which is fundamentally sound. Lawrence is the largest, strongest and most expe rienced organization conducting nationwide held warehouse operations. Annual Report as o f December 3 1,19 48 SAN FRANCISCO LOS ANGELES PORTLAND SEATTLE ASSETS CASH IN BANKS A N D O N H A N D A cco unts an d D e p o s it s w it h N 5 141,377.08 . . . 1,684,923.93 . 4,853.80 _______________ . $ i , 8 3 i , i 54.8 i WAREHOUSE A N D OFFICE E Q U I P M E N T .................... 180,421.47 current A ssets C o s t ............................... $344,201.02 Less Reserve for Depreciation . . . FRESNO . . 163,779-55 OTHER PHYSICAL A S SE T S ............................................. D CHICAGO eferred Ch a rg es to Fu t u r e O p e r a t io n s . . 21,897.53 2 8 1,5 2 0 .9 2 Prepaid Insurance..............................$ 65,927.16 Inventory of Supplies.. 46,670.81 Improvements to Leased Property . . 70,968.00 Other Prepaid Expenses . . . . . 97,954.95 HOUSTON DALLAS NEW ORLEANS . . STOCKTON PHOENIX . c o m p a n ie s o t e s r e c e iv a b l e In s u r a n c e To tal SPOKANE . D iscount o n Preferred s t o c k ......................... To tal DENVER a sse t s 10 ,868.30 .............................................. $ 2 ,3 2 5 ,8 6 3 .0 3 DES MOINES KANSAS CITY ST. LOUIS CLEVELAND CINCINNATI NEW YORK BUFFALO BOSTON LIABILITIES A N D N E T W O R T H Accounts N p a y a b l e o tes p a y a ble to ATLANTA CHARLOTTE b a n k s ..................................................... 17 5 ,0 6 7 .0 5 5 2 7 ,0 0 0 .0 0 A ccrued T axes - N o t D u e .................................................... 2 9 7 ,4 9 4 .4 5 Income Tax withheld from Employees . $ 89,715.43 Social Security T a x e s ......................... 103,363-41 Federal Taxes on 1948 Income . . . 95,655.22 Other Federal, State and LocalTaxes 8,760.39_____________ T o tal PHILADELPHIA PITTSBURGH ..................................................................$ l ia b il it ie s .......................... $ N et w o r t h ..................................................................................... 999, 561.50 1 ,3 2 6 ,3 0 1 . 5 3 Preferred Stock-—16,409 Shares — $25.00 par v a l u e ............................. $410,225.00 Common Stock— 25,784 Shares . . Earned Surplus................................... 373,520.00 542,556.53_____________ W ASH IN GTO N, D. C. T o t a l L ia b il it ie s MANILA, P. I. Northwestern Banker, April, 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis and N et w o r t h ................................. $ 2 ,3 2 5 ,8 6 3 .0 3 7 N um ber three o f a series BANK-MONEY Electrification— the march o f kilo watts across the land— is an index o f a nation’s progress— but before the current flows, money must flow and flexible bank credit plays an indispensable part. The Chase has been a leader in supplying Bank-Money for the march o f kilowatts. T o provide this important service, the Chase for nearly two decades has maintained a special department dealing exclusively with the nation’s electric and gas companies. CHASE UTILITY LOAN PERCENTAGE INDEX l/U 160 150 140 130 no 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 A V ER A G E 1939 = 100 Chase credit is constantly bringing to more and more homes and industries throughout the nation— current that flows at the turn of the switch. THE CH ASE https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N A T IO N A L B A N K O F THE C IT Y O F N EW Y O R K Member Federal Deposit Insurance Corporation d ßffjt/o c a n / u n r/ en /Ziert bebnice /o ctfo/e/jtert / y rrt /i t y Z c/icrte Northwestern Banker, April, 1949 8 y V J- k Y O U R B A N K ’S BO N D ACCO UN T * T ODAY, business and economic regulations—interest rates—earnings movements provide favorable oppor conditions are undergoing sig —and general economic trends. tunities. nificant changes. You will want to be A fter careful study, our Bond sure your bond account is analyzed Department draws up a detailed recommendations for your bank now with a view to the conditions analysis which recommends what to Simply write Bond Department, that lie ahead. buy and what to sell. In addition, we Bankers Trust Company, 16 Wall can advise you on the arrangement Street, New York 15, to make the of maturities, and suggest switches necessary arrangements. There is no from one issue to another as market charge or obligation. In making specific recommenda tions to your bank on the composition of its bond account, our specialists evaluate the following factors— We will be glad to give you specific Volatility of deposits—liquidity of bond account —trends in loans and deposits —nature of deposits —pros pects for loan expansion —Treasury and Federal Reserve policies —tax Northwestern Banker, April, 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Ba n k er s T rust Company NEW YORK M EM B E R FED ER A L DEP OSIT I N S U R A N C E C O R P O R A T IO N A c 9 New Directors « Two new directors of the Financial Public Relations Association w e r e elected at the mid-year meeting of the board of directors at Detroit, Michigan last month. Floyd L. Dwight, vice president, First National Bank, Minneapolis, Min nesota, was elected to fill the unex pired term of Maynard D. Conklin, former trust officer of the Fifth Third Union Trust Company, Cincinnati, Ohio, who has joined the Champion Paper & Fibre Company, Hamilton, Ohio, to handle estate planning for company officers. Rod Maclean, assistant vice presi dent, Union Bank & Trust Company, Los Angeles, California, will serve the remainder of the year in place of Jerrolcl Owen, who resigned as director of public relations, Central Bank, Oak land, California, in order to join mer chandising Factors, Inc., of San Fran cisco. Burroughs Report ì How Burroughs profits were used to help finance an intensive two-year pro gram of modernization was the princi pal subject of the company’s 1948 annual report mailed recently. In his letter to stockholders, John S. Coleman, president of the company, said that this two-year modernization program had created new jobs and increased unit production. During the last two years, Mr. Cole man said, Burroughs’ profits totaled $18,837,909. Of this amount, 39 per cent, or $7,477,643, was paid to stock holders in dividends. The remainder, or $11,360,266, was used to help finance the modernization program and the in creased production which it achieved. “During the last two years,” Mr. Coleman wrote, “out of the profits re ceived by the company, $4,902,000 was spent for new tools, dies and fixtures; $3,354,000 for new machinery and equipment, and $2,751,000 for new plant. That was a total new invest ment in two years of approximately $730 for every employe in the organi zation.” In discussing the future, Mr. Cole man said that the company plans to “ introduce several new lines of ma chines within the next two or three years” and that these are “designed to broaden the market for the company’s products and to maintain business vol ume at a continuing high level.” He said, “With the gradual elimina tion of the accumulated backlog of demand which followed the war, Bur roughs operations are now returning to what might be expected under nor mal peacetime conditions.” https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis DES MOINES O ldest Financial Journal West of the Mississippi • 54th Year • No. 741 IN THIS APRIL, 1949, ISSUE EDITORIALS Across the Desk from the Publisher.................................................. 10, 11 FEATURE ARTICLES Frontispage .... .................................................... ....................................... 4 Big Steps in Planning Your Government Bond P ortfolio........... ........................................................................................... R. II. Wayne News and Views o f the Banking W orld............. Ralph W. Moorhead They Came on Horseback to Make a Loan............... Mrs. Ruth Morse How to Set Up Your Bank’s Reserves for Bad Debt Losses........... ......................................................................... ..Laurens Williams Don’t Waste Your White Space................................Browne Sampsell Is a Father and Son Partnership Recognized for Income Tax Purposes?— Legal .......................................... .................................... Bankers You Know— W. B. Millard, J r................................................. Independent Bankers Hold Annual Convention.................................... 13 15 16 17 18 19 20 23 26 BONDS AND INVESTMENTS Equipment Trust Certificates Are Excellent Bank Investments..... .................................................................................Raymond Trigger 33 INSURANCE 4 Reasons Why Life Salesmen Should Be Happy............................ ...................................................................Harold M. Stewart, C.L.U. 37 STATE BANKING NEWS Minnesota News ........................................................................................... Twin City News................................................................................... South Dakota News................................................................ Sioux Falls News................................................................................. North Dakota News.......................... Nebraska News ................................ Omaha News ................................ Iowa News .................................................................................................... Des Moines News................................................................................. Conventions ......................................................... 41 42 45 45 47 49 52 57 62 64 IN THE DIRECTORS' ROOM A Few Short Stories to Make You Laugh.............................................. 66 NORTHWESTERN BANKER 527 Seventh St., Oes Moines 9, iowa, Telephone 4-8153 RALPH W. MOORHEAD CLIFFORD DE PUY Associate Publisher Publisher HENRY H. HAYNES Editor ELIZABETH COLE A dvertising Assistant PAUL W, SHOOLL Field Representative BEN J. HALLER, JR. Associate Editor HAZEL C. STEPHENSON Auditor MALCOLM K. FREELAND Associate Editor SADIE E. WAY Circulation Department JOSEPH W. FRANKS Field Representative NEW YORK OFFICE Frank P. Syms, Vice President, 505 Fifth Ave., Suite 1805 MUrray Hill 2-0325 DE PUY PUBLICATIONS: Northwestern Banker, Underwriters Review, Des Moines Insurance Directory, Iowa-Nebraska Bank Directory. Northwestern Banker, April, 1949 10 > growth of federal expenditures has been ac companied by a spreading of federal taxation into more and more different sources of revenue. Going back all the way to the establishment of the federal income tax, by constitutional amend ment, thirty-five years ago, the Federal Govern ment has increased its total tax tremendously not only by exploiting this tax source to the hilt but by reaching out into numerous new fields through a variety of payroll taxes, excise taxes, estate taxes and gift taxes. Today the sumtotal of federal, state and local taxes has risen to the staggering figure of $54 billion, compared with $15 billion in 1938, and $10 billion in 1929. > K Tax Collections in the United States (In Billions of Dollars) Year Federal State Local Total 1929 $ 3.3 $2.0 $4.8 $10.1 1938 6.9 3.8 4.6 15.3 1948* 40.0 7.9 6.0 53.9 *Partly estimated. Across the Desk From the Publisher (Dsuvl díowwucL Sh&psüuL: President, National City Bank of New York As the N orthwestern B anker has pointed out many times, it is imperative that we do some thing to reduce our federal government expenses. In a recent article in your “ monthly letter” it was emphasized that a very small part of our total taxes go to state and local government in comparison with the amount which goes to our federal government. The break-down of these figures was about as follow s: 1. 2. 3. 4. Total taxes Federal, State and local .54 billion Federal Government receives..... . 40 billion State Governments receive.............. 8 billion Local Governments receive................ 6 billion Our difficulty, Mr. Sheperd, is that, whether it is labor that wants increased wages or agricul ture that wants increased parities, or even some bankers who want more bank loans guaranteed by Uncle Sam, they all go to Washington and ask for legislation which will accomplish these pur poses. These demands in turn increase our federal taxes, and so long as we have a “ spending” presi dent who seems to pay little regard to ways of reducing expenses, it will probably be some time before this trend is changed. Your letter pointed out that “ the enormous Northwestern Banker, April, 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis “ It will be seen that of the overall total of $54 billion taxes collected from the people in every locality of the country, $40 billion, or ap proximately three-quarters, goes to the Federal Government. The 48 States get 15 per cent. Only by continuous education and presentation of the facts to the general public, can we expect to improve our fiscal policy. AYhen that will be, nobody seems to know— but it must be done. (bowv VYIczaIl CL. Showtv: E xecutive Vice President Harris Trust and Savings Bank, Chicago In a recent discussion on bank credit policies, you pointed out that bankers today have obliga tions to four distinct groups, and these are: 1. Depositors 2. Stockholders 3. Helping nation maintain economic soundness. 4. Keeping our borrowing customers out of trouble. As you put it, “ Our primary obligations are to our depositors and stockholders. Today two other responsibilities weigh heavily on us. These are the important parts we can play in helping the nation maintain economic soundness and sta bility, and our obligation to keep our borrowing customers out of future financial trouble. The success with which we achieve these objectives will be the measure of our ability as bankers. “ A wise bank credit policy does not mean a restrictive credit policy. It does not mean a sharp curtailment of loans. It means a selective credit policy— a careful culling of credits and i 11 loan applications from the viewpoint of the safety and productiveness of the loan, the finan cial condition of the borrower, and the liquidity of his business when the loan is repaid. “ So long as the national objective continues to be one of maintaining full production, maximum employment and high income, a pronounced re duction in the amount of bank credit outstand ing is not only impracticable but also virtually impossible. A sharp decrease in the volume of loans could occur only if there is a marked re versal of present inventory policies by business, or a sharp drop in construction and the volume of agricultural and industrial production.” It is the opinion of the N orthwestern B anker that the 4th item of keeping your borrowing cus tomers out of future financial trouble is probably as important as any because if we keep our econ omy sound by keeping our loans in good shape the rest of the problems will help to solve them selves. After all, a sound national economy cannot ex ist on an unsound individual or private economy. (D sucvl d ta n / ii& W L S n u iJ v : Associate Editor Saturday Review of Literature The suggestion contained in a recent editorial of yours that “ the impoverished land itself can be made a new frontier of hope” throughout the world has interesting implications although we doubt that such an easy solution could be found to our battle with the Communistic ideas which seem to be permeating many countries. You emphasize that “ the modern plow and har row, with a tractor in front of them, may be better symbols of the future than armies equipped and trained by this country and a revived middle class. With our wealth, our mechanical ingenuity, and our knowledge of scientific agriculture, with the pressure we can apply to obdurate and medieval governments, which would collapse when our aid was withdrawn, we might hope to promise more to the millions whose only outlook is misery, toil, and death by starvation, than can all of Russia’s slogans. The impoverished land itself can be made the new frontier of hope. If this be revolution, let it come! But let it be guided by the Western world, so that it may bring with it freedom, and the other almost forgotten benefits promised by the Atlantic Charter, by virtue of which the world had the right to assume we fought and won the war. ’ ’ Someone once said that you will not find Com munism or Socialism in a land where people own their own farms and their own homes, and we think this is true, and is in line with what you are saying, but the problem is to put the tractors and https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis the farm equipment into the hands of individuals in every land because, first of all, they would have to own some land which they could farm, and second, they would have to have the finances to purchase the equipment. Your answer to that probably would be that since the Marshall Plan is spending billions, we could likewise buy up land and give it to them, but we doubt if this could be easily arranged. Certainly we do endeavor to encourage the peo ple of other nations to be self-sufficient, but it is not completely an agricultural problem. (frm A , ^ s u fiq s L J jc u v I m v , (PPl . ( D .: Consulting Psychologist No matter how old any of us are, we all want to stay young and feel young, and therefore we were quite interested in your program to ac complish that purpose, and which included this interesting schedule: “ Plan your life: Look ahead; decide what you want to be 10 years hence, then make plans to achieve that goal. “ Simplify your life: Get rid of nonessentials. ‘ Our life,’ says Thoreau, ‘ is frittered away in detail. . . . Let your affairs be as 2 or 3, not 100 or 1,000, and keep your accounts on your thumb nail. ’ “ Watch your diet: Fat around the middle means fat above the ears— overeating slows down your mind as well as your body. “ Broaden your interests: Keep learning new things; develop sources of personal power that don’t depend on muscular prowess or bursts of energy. Use your brain instead of your brawn. “ Make Friends: Don’t limit your contacts to your own family or your own generation. Join at least one club not connected with your work. Have a creative hobby : The enthusiasm you work up for it will keep you young in mind. What’s more, many a man has found a second and even more profitable vocation in beekeeping or cabinetmaking or some other pastime entered into for the sheer fun of it. “ Cultivate a sense of humor: Listen to humor programs on the radio. Make a scrapbook of the best cartoons and funny stories you’ve en countered.” Perhaps what you have to say, Dr. Lawton, could all be summed up in one sentence, “ don’t take yourself too damn seriously.” 12 Proofing 5 0 ,0 0 0 Items a Day $ In the "p r o o f" departm ent— deposits, cash let ters an d other items are given their primary han dling an d sorting. It also supplies other departm ents with p red eter m ined totals on their work. A n a v era g e of 50,000 to 60,000 checks p a ss through the proof departm ent daily- CENTRAL NATIONAL BANK and Trust MEMBER Northwestern Banker. April, 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis C o m p a n y - Des FEDERAL DEPOSIT INSURANCE Moines, CORPORATION I owa 13 l i yo u would lik e extra co p ies of th is p ictu re w e w ill be glad to sen d them https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis to you with our com p lim en ts.— The N orth w estern B anker. Northwestern Banker, April, 1949 14 > From one banker to another • • • • •• This will indicate that on the 2nd of January we will have had an account with The First National Bank for 75 years. It may seem a long time, but I have never had an occasion to note during all these years a more pleasant relationship, and I know of no reason why this should not continue for many years more. f -f- > y Your bank is cordially invited to use The First National Bank of Chicago as your correspondent. Every effort will be made by us to promote and maintain the kind of helpful cooperation that brings us letters like the one quoted above. The First National Bank of Chicago Building with Chicago and the Nation Since 1863 Northwestern Banker, April, 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A 15 4 B ig Steps in P G overnm ent B on d P ortfolio How to Arrange Maturity Distribution So You Will Have Funds When They Are Needed and Wanted By R. H. WAYNE Assistant Vice President Harris Trust and Savings Bank, Chicago OU don’t have to be an expert to manage a government bond port folio. This is proven by the fact that most banks have done, without “expert” advice, a good job in handling their own government bond accounts. There is no problem of credit involved in the management of such a portfolio and this makes it relatively easy. The size of the portfolio does not make too much difference. Our bank’s government bond account averages about $180 to $190 million. However, our problems aren’t any different fun damentally from those of a bank with a much smaller holding in govern ments. We hold our governments for the same reason every bank does, whether it be a large or a small bank; liquidity and earnings. Government portfolio management revolves around these two factors. Either one can be increased at the expense of the other. Whether liquid ity should be increased at the expense of earnings or whether earnings should be increased at the expense of liquidity depends upon the individual circum stances of the individual bank. It sim ply boils down to a question of arrang ing the maturity distribution so that funds will be available when they are needed and wanted. There are other considerations, such as the need for tax exemption, but these really are secondary. For my part, I believe the moral of all the recent events in the govern ment bond market is to run your port folio in such a way that your bank is never too dependent on the main tenance of a price support program in order to insure the liquidity of your portfolio and to protect the solvency of your bank. y Local Problems Important The background and problems and apparent needs of an individual bank should be important factors in the planning of its portfolio. No two banks are exactly alike as to their potentialities or their problems. Ev ery bank should give very careful con sideration to the local conditions under which it is operating and should de sign an investment program in the https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis will have another factor, the earnings needed or desired from your portfolio. How do you deside your future de posit trend? You know your custom ers, their plans and their hopes, and you know how prosperous they are. You can make some pretty good esti mates of what the future may hold for some of them. In some banks it is possible to review all of your ac counts to determine how much “fluff” you have. If this is possible, you should have a fairly good idea of what portion of your deposits you might be called on to pay out in a reasonably short time. If a detailed study of this kind is not feasible you can approach this problem in a different way, although a much less accurate one. It will give you a very interesting picture if you make a simple computation to show the ability of your bank to meet a loss of various percentages of your deposits from your cash and securities due or callable in various periods. For example, you can make certain arbi trary assumptions. See how you would stand if you lost 10, 25 or even 50 per cent of your deposits in the next few years. Assume that after your de R. H. W A Y N E posits had declined you would still “ Y ou don’ t have to be an econ om ist” need about 20 per cent of your lower deposit figure in cash. How would program devised is bound to fall short of its objectives at times. But it is so your present cash and maturities in much better to have a program to fol the next few years permit you to meet low, in spite of any shortcomings that such declines as these? The results it may have, rather than to have no of such a study may be very revealing. program at all. Typical Portfolio Review We recently were asked to review Fow can an investment plan be . developed? Let’s begin with the the government portfolio of a bank premise that the foremost considera that was fairly typical. Present depos tion is liquidity. Every bank wants to its of the bank were $3,000,000. A few be in a position to raise in a short years ago deposits were just about half time sufficient funds to meet any pos of this but, like most banks, they had sible needs. Therefore, to devise a expanded greatly during the war pe riod. About 25 per cent of these de program which will place it in this position, the bank should attempt to posits were in loans and no further estimate what these needs might be. material increase was expected. Twen When you consider this your first ty per cent of deposits were in cash thought, of course, will be the prob and due from banks. Most of the rest were invested in governments. Be able future deposit trend of your bank. You will also consider your potential cause the management of the bank was conservative and because it ex loan expansion, if any, in addition to the possible or probable need for funds pected a decline in deposits some time (Turn to page 62, please) for other purposes. Obviously, you light of these, as well as the over-all condition of our economy. When you speak of a planned pro gram it may sound rather complicated. It doesn’t have to be. Further, any I Northwestern Banker, April, 1949 16 \i*n%s and Vii*lift OF THE BANKING WORLD By RALPH W. MOORHEAD, Associate Publisher A p p o in t m e n t of Irving l. Greene of Rochester, N. Y., as payroll savings consultant of the U. S. Treasury department has been announced by Raphael H. O’Mal ley, director of payroll savings. Mr. Greene, who is assistant general sales manager of the Todd Company, Rochester, N. Y., will help enlist the support of the office equipment indus try, and will act in an advisory capac ity for payroll savings plans covering all types of business and industry. Television is already well on its way to becoming a billion-dollar-a-year in dustry, according to a recent bulletin of The Northern Trust Company, Chi cago. In a review of the industry, the bul letin reports that the spectacular prog ress in the field is indicated by the growth in output from only 6,500 sets in 1946 to 178,000 in 1947 and 850,000 in 1948. “ It is generally estimated that this year 2 million sets will be pro duced” the Bank observes. “New England Son” is the title of a new book, featuring the biography of Albert Wiggin, former president of the Chase National Bank. It was writ ten by Mr. Wiggin’s daughter, Marj orie Wiggin Prescott, who has traced her father’s career from his boyhood in a New England parsonage to his ultimate fame as president of the Chase and delegate to the Bank of In ternational Settlements. When Mr. Wiggin first went with Chase in 1904, it had only 125 em ployes and no branch offices. During his presidency it became the world’s largest bank. In the opinion of the experts, a relatively high stock market is un likely so long as war tension exists. At last month’s convention of the National Federation of Financial An alyst Societies, Justin F. Barbour of Barbour’s-Dow Theory Service, Chi cago, said “A bull market probably will not occur until we can antici pate the end of the war economy.” Hanks Sponsor Morivi Exhibit SPON SO R M O D E L E X H IB IT — Cedar Rapids’ five banks created a tremendous amount of news interest last month when they displayed a cooperative exhibit at the second annual Midwest Agriculture and Industry Exposition in Cedar Rapids. The exhibit, pictured above, was entitled “ Y ou r Bank H elps Y ou Buy, B u ild and G row .” Chairman of the public relations committee for the project was D a vid Rnml, vice president of the Guaranty Bank and Trust Company. Construction chief was B rett Dishong, assistant cashier of the Peoples Bank and Trust Company. The other three banks, First Trust and Savings Bank, Merchants National Bank and United State Bank, all contributed greatly to the success of the exhibit. The display itself included a miniature railroad, a farm, a town and an indus trial area; the idea being that banks help agriculture, industry and individuals to buy, build and grow. The exhibit drew by far the largest number of people of any exhibit at the Fair for the second straight year. It is expected that they will put the entire exhibit on display at the annual State Fair in Des Moines and again at the Mid-Winter Fair next year. Much favorable publicity was given to the banks through a full page ad an nouncing the exhibit and an excellent humorous feature article with picture that appeared in the Cedar Rapids G azette. Northwestern Banker, April, 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis John H. Lewis, New York analyst, said “Unless war tension diminishes, cautions will be engendered in the minds of investors which will prevent a bull market of any important scope or duration.” C. L. Fredrickson, president of The Live Stock National Bank of Sioux City, Iowa, has announced the election of George A. Neal to the board of di rectors of The Live Stock National Bank. Mr. Neal is president of the Sioux City Gas & Electric Company and the Iowa Public Service Company. He is president of the Chamber of Com merce at the present time and is a past president of the Sioux City Trac tion Company. Mr. Neal also is a di rector of the Chicago, St. Paul, Min neapolis & Omaha Railroad and of the First Federal Savings & Loan Associa tion of Sioux City. Mr. Neal has served as Potentate of Abu Bekr Shrine and as president of the Rotary Club. He is a graduate of Kansas University with a Bachelor of Science degree. He is a member of the Sioux City Country Club, Sioux City Club, and all Masonic bodies. Thrift is still the basis of our de mocracy, for democracy depends upon the character of its citizens and charafter in turn depends upon hard work and the self-respect of self-earned se curity. William A. Marcus, senior vice presi dent of the American Trust Company, San Francisco, and president of the savings and mortgage division of the A. B. A. emphasized this point at the annual meeting of the conference last month saying, “The aggregate of sav* ings, both of individuals and of busi ness, provides the means for estab lishment of new industries, for re search, and for expansion of existing facilities. Savings, as a matter of fact, are the sole means of creating more jobs and more products, thus provid ing for our increasing population, raising the national income, and im proving our standard of living.” Harry E. Emerson, president of the Illinois Bankers Association, believes the five day work week for bank em ployes is a trend of the times. He says: “Bank management recognizes, that bank employes are no different than employes in other lines of busi(Turn to page 54, please) y ■f w T >- / 17 T h ey Came on H orseba ck to M a k e a Loan Pioneer Ranchman and Banker Describes the Early Days in the Sandhill Country of Nebraska By MRS. RUTH MORSE Omaha ICTURES of cattle and scenes of ranch work were spread across Tom Hamilton’s desk as we talked, a sheaf of legal papers lay by his hand, and opened between us was a yellowed newspaper. President of Citizens State Bank of Thedford. Nebraska, he had just told me that a ranch country banker’s view point was like a patchwork quilt. When I asked him why, he settled back in his chair, nodded through the open door toward the cashier and a customer. “Out there we have people arrang ing for money to build or buy or ex pand,” he said. “ Some of them are clearing their mortgages, and some times it’s not that simple.” Problems and factors of Nebraska ranch country are as varied as crazyquilt pieces, he went on. Beyond his bank’s service area are state and na tional influences, and it’s all a part of the pattern. One national event influencing Mr. Hamilton’s very early years was the unsettled period following the Civil War, when bushwhackers of the Mis souri timber country robbed and ter rorized families on farms. “ Most families lived in log cabins, and none of us had much money,” Mr. Hamilton said. “ My father had split a log and hollowed it to make cradles for my twin brother and me; the most comfortable home might be so because someone had arranged it that way, but there wasn’t much to carry off.” Stories around the neighborhood fol lowed the bushwhackers’ visits to oth er homes . . . they’d taken all the dishes and bedding from one home, and the last piece of bacon from an other. When they came to the Ham ilton cabin, they tramped the feather beds with their muddy boots and scat tered straw ticks in the yard, hunting food or valuables that might be so hidden. In a visit to Mr. Hamilton’s Grandfa ther Buster, the outlaw group smashed the kitchen stove and wrecked the grandmother’s l o o m , throwing the pieces into the river. A council of the relatives resulted in both families P https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis moving to Nebraska City, where the men worked for a saddlemaker. “ My brother, Henry, was eleven years old then”—the veteran banker and ranchman shifted the papers on his desk—“he was herding our cattle T O M H A M IL T O N “ H is cradle a hollow ed lo g . . .” outside of town a little way, and when he didn’t come back at sundown, they went to look for him, found him dead beside a creek with two bullet holes in his head, and our cattle had been stolen.” Andreas’ “ History of Nebraska” tells of the trial of Casper Diercks, captured after his sale of the Hamilton cattle and brought back to Nebraska City, where aroused citizens awaited him. Pioneer Justice The court process was a master com bination of order and speed, amd Diercks was sentenced to hang at six o’clock on the evening of the trial. A scaffold was built in the court house square, and in the early August evening the crowd stood watchfully silent; a prayer was offered by the Rev. H. F. Davis, and Grandfather Buster laid the rope around the neck of “Cash” Diercks. “ I didn’t come to the sandhills until 1898,” Hamilton answered my ques- tion. “ I filed on 160 acres, twelve miles north of Thedford, and we lived in a sod house for quite a while.” His production of mixed cattle was in part nership with his four brothers, he added, and they branded 5B on the right hip. Cattle companies had been using free range over large areas and, as homestead entries cut deeper into the big tracts, many owners hoped for passage of a lease bill. “ I was a homesteader, and one of the small operators,” Mr. Hamilton smiled in recollection. “J. H. Edmiston was chairman of the National Independent party, and in close asso ciation with Congressman Neville. We thought we’d ask Neville to introduce a homestead bill as backfire against the idea the big ranchers had in mind.” A meeting was called, and twentytwo members of Nebraska Stock Grow ers Association drew up a letter sug gesting that Neville ask for 640 acres in the homestead bill. “ I was late getting to the meeting,” he said, “but they held it open for me, and when I did get there they had the letter ready to send.” He shook his head, still smiling, and stirred the cattle pictures we had spread on the desk. “ I didn’t think they’d asked enough,” he went on. “ I told them it would take ten acres to a head of grazing cattle for the year round, and take 100 head to keep an average family of five persons. They agreed to my suggestion that we ask for two sections, and the letter went that way to Neville.” The bill was introduced by Neville, but wasn’t passed until Congressman Kincaid renewed the action after his election, Mr. Hamilton said. “ The two-section bill made the first hitch, but the Senate cut it in two and made it 640 acres. Their Isolated Tract law at that time provided that * 120 isolated acres could be advertised and sold to the highest bidder; Kin caid got that increased to 480 acres.” The 5B partnership was dissolved as the four older brothers moved from the sandhills, and Mr. Hamilton and (Turn to page 27, please) Northwestern Banker, April, 1949 18 H ow to Set f R eserves pHank's fo r Rad L osses y A Review oí "Charge-Off" and "Reserve" Methods and What Internal Revenue Commissioner's Ruling Means to Banks By LAURENS WILLIAMS, Attorney Young & Williams Omaha INCE enactment of the Revenue Act of 1921, all taxpayers, includ ing banks, have had the option of treating bad debts in either of two ways for income tax purposes: 1. By taking a deduction for specific bad debts, which commonly is called the “charge-off’* method, or 2. By taking as a deduction an addi tion to a reserve for bad debts, com monly called the “bad debt reserve” method. Under the “charge-off” method, when a specific debt becomes worthless the asset representing the debt, whether it be a note, an account receivable or in other form, is “written-off.” It is eliminated from the assets. It is so “charged-off” by debiting a profit and loss account, usually called “Chargeoff for Bad Debts,” and crediting the notes receivable, accounts receivable or other asset account in which it has been carried. Thus, an expense — a debit to a profit and loss account—and thereby a deduction from income is created. Under the “reserve” method, you do not look primarily to specific losses in the particular year. Rather, a “bad debt reserve” account is created. This “ Bad Debt Reserve” account is not capital account, it is a valuation account, even though it is a reserve against loss of S capital, not loss of income. It is cre ated by debiting profit and loss with an amount determined by reference to the bad debt experience of the partic ular institution and crediting the “bad debt reserve” account. Thus, again, an “expense”—a debit to profit and loss — a deduction from income, is created. How to Change Incidentally, in the year in which a taxpayer changing from the specific charge-off method to the reserve for bad debt method makes the change, he takes as a deduction both his specific bad debt deductions for the year and the amount of his reserve for bad debts. And further, incidentally, you must apply to the Commissioner of Internal Revenue, at least 30 days be fore the end of your tax year, for per mission to change from one method to the other. You cannot change with out permission. After a reserve for bad debts is es tablished and the taxpayer is on the reserve method of treating bad debts, as specific debts become worthless, the asset account in which such debt has been carried is credited with the amount of such debt which then is written off by charging it against the reserve for bad debts. The asset ac count is credited, the bad debt reserve T h e N ew R e s e r v e M e t h o d R u le Does This: 1. It recognizes that a bank’s average loss experience over a 20-year period is a fair measure of the losses it may reasonably expect to incur on its loans outstanding at the end of a given year. 2. It sets up a specific formula for determining what is a “ reasonable addition to reserves” in the case of banks, and 3. Puts a ceiling on the amount of reserve for bad debts which can be accumulated. Northwestern Banker. April, 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis is debited. As debts which previously have been written-off are collected, the amount of the recovery is credited to the reserve for bad debts account. The amount of the recovery is not, there fore, taxable income. It simply oper ates to increase, to the extent of the recovery, the bad debt reserve. To put it in its entirety, a bad debt recov ery is handled by debiting cash and crediting reserve for bad debts. Re sult: not taxable income. + V Charge-off The charge-off method has been in rather general use by banks. It is considered unsatisfactory by many taxpayers for a good many reasons. In the first place, use of that method by taxpayers has involved constant dispute between taxpayers and repre sentatives of the Internal Revenue Department because, prior to 1942, a deduction could be taken for a specific bad debt only if two requirements were met: (a) First, that the debt was actual ly ascertained to be worthless during the taxable year. (b) That it was actually charged off within the taxable year. By the 1942 amendment the actual charge-off requirement was eliminated so that presently a deduction is al lowed upon the single test that the debt has become worthless during the taxable year. The principal difficulty with the charge-off method is that of determin ing the year in which worthlessness occurs. A A 4 A Reserve Method Sounder The other method, the reserve meth od, accountants generally agree is a sounder method of treating bad debts for income tax purposes and for gen eral business purposes because it tends to level off the charge-offs and avoid peaks and valleys. It has been avail able to taxpayers generally since 1921, including banks. The principal difficulty with the re serve method, as related to banks, has been that the average revenue agent has been unable to see eye to eye (Turn to page 30, please) < 19 When you sit down to write your ads, it isn’t the bank, its competitors, or your own advancement that should be uppermost in your thoughts and imagination, but the public you hope to serve. Get John Q. Public in the center of the picture. Èhm V W a ste Your W h ite Spaee Let Your Advertising Copy Tell the Complete Story of What You Can Do for Your Customers By BROWNE SAMPSELL HITE space,” says Margaret Lee R u n beck , distinguished American writer, “is a most costly thing. So the thing written must be more valuable than the white space on which it is written.” That the thing written should be more val uable than the space is indisputable. Can you imagine a grocer using his white space to say “Buy beans.” When the grocer advertises beans, he tells the kind—navy, kidney or string—that he has for sale; states whether they are canned, dried or baked, and a smart grocer dresses up the facts with colorful, descriptive wordage to attract attention and to arouse purchasing de sire for his particular beans. If the grocer does this to advertise a uni versally known and desired product, certainly the banker needs to paint a vivid word picture of the services he renders, but cannot exhibit as the grocer can his beans, and which even in this sophisticated age remains a mystery to many a John Doe. The banks of a town render sub stantially the same service, yet each bank has a different atmosphere and a different way of rendering the same services. These small differences per sonalize a bank, set it apart and they should appear in the bank’s advertis ing copy . . . provided they are a credit to the bank and a help to the customer. But as a copy writer I find banks most reluctant to publicize their individuality. They want to appear exactly alike; “just say we’re a friend ly bank,” is as far as they’ll go. Some times they hide the fine points of their W https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis service under apologetic expressions like “Giving the best service we can.” If that isn’t wasting costly white space, what is? There is no need to advertise limi tations; John Q. Public spots ’em easily enough. The fact is, the entire personnel of a progressive bank works constantly to better and broaden its services. Such an institution can, with a clear conscience, make statements such as “Our one aim is to give you more and better service.” Or “We will welcome the opportunity to serve your best financial interests.” Examples Often space is wasted by ads like: “ Don’t let your small valuables and important papers be lost or stolen. Rent a safe deposit box—We’ll give you good service” . . . which serves probably as a feeble reminder to some one sold on the advertising bank and intending to use the vault service some time . . . but for the man in the street you had better give specific details. Tell him the kind and the extent of protection your vault gives, the reasonable cost of a box, the pri vacy, etc. During the war when there was such a demand for safe deposit boxes to keep war bonds in, I was amazed at the number of persons who had no idea what a safe deposit box was like. Again you waste your space when you talk in one ad about several dif ferent services . . . i.e., you start off about saving money, switch to per sonal loans, and . wind up shouting about your vast - resources, prestige, etc. Such ads confuse because they do not give a clear picture of anything. Remember the old rule about two thoughts in one sentence? That’s what I. mean. You waste your space when you merely generalize. In a study of the ads of the year I came across Christ mas Club copy to the effect that since a Christmas Club is all right for chil dren and grown-ups, too, it must be all right for every thrifty body. Don’t you think that most mentally mature adults would prefer a more detailed, explicit ad such as: “A Paid-In-Advance Christmas — Christmas is bliss indeed . . . if you have cash for holiday shopping, funds for Christmas charities, and money for year-end obligations. The certain, pleasant way to have a financially free Christmas next year is to join our 194-Christmas Club,” and so on. Special Advertising Another ad which strikes a new note in Christmas Club advertising and shows how a club member is helped in other ways besides savings, reads: “Your Financial Standing . . . is helped by your Christmas Club mem bership. It is an evidence of your foresight and your commitment to pur poseful saving, and is taken into con sideration by the bank when you ap ply for references or a loan. We shall be happy to enroll you today in one or more of our eight Christmas Club classes.” With the permission of The Real Estate Trust Company of Philadelphia (Turn to page 40, please) Northwestern Banker, April, 1949 20 LEGAL X Is a F a th er and Son Heeoijnized fo r Mneonte Tax P u rp oses? Q . Martel, a rancher and banker, owned, with a partner who was not a blood relation, a fine herd of cattle. The two of them had been in business a long time. The partner decided to retire and sold his interest to Martel, who in turn conveyed such interest to his four sons. Martel and they oper ated the cattle raising business as a bona fide partnership. Would the operation, because of the father and son family relationship, be recognized as a partnership for income tax pur poses by the federal authorities? Yes. When a family partnership is entered into on a bona fide business basis and not for the purpose of evad ing, avoiding, or dividing income tax it will be recognized as a partnership for income tax purposes even as it is recognized in the law as a partnership for all other purposes. Neither the Constitution, the statutes, nor public policy requires that partnerships be tween fathers and sons be discour aged. Q , Brown, a retired North Dakota banker, died a resident of that state leaving a will which he had drawn up by himself in his own handwriting. After making various specific bequests the instrument provided that the in come from the remainder of his prop erty should go to Livingston. No limitation of time or amount was in serted. Did this mean that Livingston received absolute title to the property constituting the remainder of the estate? There was no further pro vision in the will or anything in the testator’s circumstances to the effect that she should not do so. Yes. The North Dakota Supreme Court has held in a recent decision that a similar will provision consti tutes the bequest of the fund and properties from which the income was to be derived. It is a well estab lished general rule that a gift of the income or interest of a fund without limitation as to time is, where no other distribution is made thereof, a gift of the principal. The reason is that where one has an unlimited right to the income there is no room for a right of property in any one else. Northwestern Banker, April, 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis This and Other Timely Legal Questions Are Answered by the LEGAL DEPARTMENT of the NORTHWESTERN BANKER Q. The daughter of a Nebraska banker married and one child was born of the union. She and her hus band were living in that state at that time. The marriage did not develop as planned and she sued for divorce. Shortly thereafter she had an offer of a good position in another state. The former husband was contributing to the child’s support, but the primary burden of supporting the child was hers. Could the Nebraska court per mit the mother to take the child, who Avas still a minor, to another jurisdic tion? Yes. In a divorce case it is gen erally the best policy to keep minor children within the jurisdiction of the court dealing with the proceedings. The welfare of the child, however, should receive the paramount consider ation in the determination of this and the policy should yield to the child’s best interests. In a recent decision the Nebraska Supreme Court, apply ing this law in circumstances some what similar to those outlined in the question, approved the taking by the mother of the child to another state. G h Corner, a hanker, also owned and operated a lumber yard. He fur nished an industrial account with cer tain lumber which it used in a build ing. Payment therefor was not made and Corner perfected a materialman’s lien against the property. Subse quently the U. S. Government per fected a lien against all property of the debtor for unpaid taxes due to it. Shortly thereafter the debtor went into bankruptcy. Its main asset was the building. Should Corner’s lien take priority over that of the Govern ment? Yes, according to a recent U. S. Cir cuit Court of Appeals, Sixth Circuit, decision. In so holding the Court pointed out that mechanics’ and ma terialmen’s liens are in a favored class because of the benefit which has been received by the property improved; that the essential principle upon which such liens rest is that of unjust enrichment; and that equitable con siderations favor according the pri ority sought in this instance. * Q i. The son of a South Dakota bank er procured certain life insurance in which his father was named bene ficiary. The policy provided that, if the insured’s death resulted from par ticipation in aeronautics, no payment would he made thereunder. It did not, however, provide that hazards result ing from war were excluded. The in sured was killed while a crew member of a navy plane which crashed on an unauthorized flight over enemy-held territory in the Pacific area, probably as a result of Japanese anti-aircraft fire. Could the father recover under the policy? Yes. The South Dakota Supreme Court recently had before it an anal ogous situation and decreed a re covery. The policy was to be inter preted to mean that the liability of the insurer was excluded only when the cause of death was incident to an ordi nary risk of aeronautics. The death of the insured resulted from a risk of war, and not from participating in aeronautics and, since war risks were not excluded by the policy, it was proper that the beneficiary recover. G . A bank clerk was living in an apartment in a rental area subject to federal control under the Housing and Rent Act and other related legislation^ His landlord, in violation of the stat utes and applicable regulations, dis continued providing hot water and heat. A federal court injunction Avas obtained against him to restrain him from such Avithholding. Such injunc tion AA as ignored and the landlord Avas committed to jail by the court issuing the injunction until he should comply Avith it. Was it Avithin the court’s poAver to do this? (Turn to page 38, please) r < 21 clfsia A / L . .......................... a latch string, hanging on the outside of a door, signified a friendly home— a home that would greet you with a warm-hearted welcome and true hospitality. J o d a i^ . . . . . although the latch strings have been gone for many, many years, we extend to you that same warm-hearted welcome, that same sincere hospitality at our hank. In a sense, our latch string is always out. W e d like to see you more often. W e ’ d like you to feel that The Omaha National Bank is your “ headquarters” when you are in Omaha. The Omaha National Bank Member Federal Deposit Insurance Corporation https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis FARNAM AT S EV E NT E E N T H Northwestern Banker, April, 1949 22 White Advanced Outstanding Roy B. White, formerly assistant ad vertising manager of American Ex press Company, has been appointed assistant vice president, financial sales department, according to Ralph T. Reed, president. Mr. White joined American Express IN W I S C O N S I N First in W isco n sin ; first in size, facilities, scope o f service, and state-wide correspondent contacts . . . 27 th in size am on g all banks throughout the nation. • In addition to unparalleled correspondent service in W i s c o n s in and U p p e r M i c h i g a n , the First W isco n sin maintains correspondent relationships with leading banks in key cities o f M innesota, Iow a, N orth and South Dakota, and other states. R O Y B. W H I T E , JR. N ow an A ssistant V ic e P resident as assistant advertising manager in March, 1946, after serving five years in the U. S. Army, including service as major in the Field Artillery Intelli gence in Europe. For two years prior to joining the army he was an assist ant buyer for R. H. Macy, Inc. A graduate of Howe Military School and Dartmouth College, the latter class of ’39, Mr. White is a member of Phi Kappa Psi, the Advertising Club of New York and the Broad Street Club. "How to invest" FIRST WISCONSIN NATIONAL BANK of Milwaukee “How To Invest” is the name of a new booklet published recently by Merrill, Lynch, Pierce, Fenner & Beane. The booklet is a 32-page book let and looks at the entire problem of investment, pointing out the basic principles that a beginner should know and an experienced investor should review. Copies of the booklet, either single or in bulk, are available without charge to anyone writing Merrill, Lynch, Pierce, Fenner & Beane, 70 Pine Street, New York. Promotion Member Federal Deposit Insurance Corporation Northwestern Banker, April, 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Appointment of Gustav Riedlin to assistant vice president and manager of the foreign department of California Bank, Los Angeles, was announced by Frank L. King, president, following the regular monthly meeting of the board of directors. 23 Bankers You Know IV. Mi.Millard President, The Omaha National Bank Omaha “ Continues the fine hanking tradition of a distinguished pioneer family” HEN W. B. Millard, Jr., was elected president of the Omaha W National Bank of Omaha at the an nual meeting in January, he became the fifth president in the history of this 83-year-old Nebraska bank. He continues the fine banking tradition of a distinguished pioneer family that was begun when his great-uncle, Ezra Millard, helped organize the Omaha National Bank and was elected its first president in 1866. His grand father, Joseph H. Millard, served the Omaha National as president from 1884 to 1917. Mr. Millard has been associated with the Omaha National since his graduation from Yale University in 1924. During his 25 years with this institution he has always been very popular among officers and em ployees, all of whom sense his ex treme fairness and willingness to co operate, particularly on any contro versial issue. More than half of the bank employes call him by his nick name, “ Bob.” They find in him a willing listener to their problems and know he will give all possible consid eration to any matters they bring up. Mr. Millard’s capacity for handling a job thoroughly by f o l l o w i n g https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis through on all details is evidenced by the remodeling program now in prog ress in the bank. This extensive p roj ect has been under his personal super vision, and the basic factor has been his desire to improve working condi tions within the bank. He meets the many problems of this three-floor remodeling job with renewed vigor each day, refusing to let the scores of details dampen his well-known sense of humor. He was born in Omaha September 24, 1900. He attended Tome School, Princeton Preparatory and Y ale Uni versity, receiving his Bachelor of Laws degree from Yale in 1924. His first position in the Omaha National Bank wTas as a clerk. In 1927 he was elected assistant cashier and two years later was promoted to vice president. He served in this po sition from 1929 until 1946, with the exception of three years and five months spent in the Army during World War II. After service with the Signal Corps and later the Finance Department, he returned to inactive duty as a lieutenant colonel. In June, 1946, he was elected senior vice presi dent. When he took office as presi dent in January, deposits of the Omaha National were $144,812,559 and total capital accounts were nearly $7,500,000. Mr. Millard’s talent for getting things done is much in demand by Omaha’s civic and business groups. He was crowned King of Ak-Sar-Ben in 1941 and reigned over this nation ally known civic association until the annual coronation ball was resumed in 1946, the longest reign in the organ ization’s history. At the annual meet ing last fall he was elected president of Ak-Sar-Ben. He is president of the board of regents of Creighton University, and is a member of the lay advisory board of Creighton Me morial St. Joseph’s Hospital, the board of trustees of Forest Lawn Cemetery Association, the Chamber of Commerce, the Greater Omaha Association and the finance commit tee of the American Legion’s Post No. 1 in Omaha. His other business affiliations are directorships with the Omaha and Council Bluffs Street Railway Com pany, Carpenter Paper Company and the Bankers Life Insurance Company of Nebraska, Lincoln. Mr. Millard is a registered Republican. His main hobby and recreation is golfing, Northwestern Banker, April, 1949 24 V A E A New Era In T ravelers C heque P romotion Biggest Magazine-Newspaper Campaign Ever Launched for American Express Travelers Cheques V r Reaches 4 0 ,0 0 0 ,0 0 0 Circulation Ail intensive campaign to attract mil Nation-wide Coverage —American Ex lions of new buyers of American Express Travelers Cheques is blanketing the coun try. Month after month, eye-catching ad vertisements in national magazines and in metropolitan newspapers in every large city are urging people everywhere to carry American Express Travelers Cheq ues whenever they travel—thus creating new customers for your hank. press Travelers Cheque advertisements appear consistently in Life, Collier s, The Saturday Evening Post, with seasonal high spots in Holiday, Time, and National Geographic. They also appear in 101 Sun day newspapers in 92 cities. This strong combination reaches families in every market from coast to coast. Hard-selling Ads —These American Ex press Travelers Cheque quarter-page ad vertisements are illustrated by such noted cartoonists as Ted Key, Whitney Darrow jr., and Helen Hokinson. High readership is assured, because more men and women read comic cartoons than any other reg ular feature. -f A t Full - page, Full - color—Supplementary full-page advertisements will highlight the campaign in April and June. These advertisements, to appear in Life, Collier’s and The Saturday Evening Post, will use full-color human interest paintings by famous Saturday Evening Post cover art ists George Hughes and Steven Dohanos. l%p RESS world Throughout the year, appealing car toon advertisements like these in varying sizes are promoting your sales of Amer ican Express Travelers Cheques in Life, Collier’s, The Saturday Evening Post, and 101 Sunday newspapers. iExprès*»*0 19smart city’ Exprès* > woro .. .Kem. i ° 5r . * » »«> “c“ C " And » r 1»y"“' sl5" lnc»\>. or if" j von a„d«poc•"k' ä Novo e*") • ,ccl von. W> ihW«de n-ny W »P ,eT, Chen«'» “ . „1 .0 "*«»• nly15 W est.«1 '•’"'o“"°JS, O ,tO ot" *i * SAFE' CONVENU"’ *' ï sPRESS WORLD* rwidü* Northwestern Banker, April, 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis < 25 ...si. ■8ÈÉ A Complete Brochure should reach your bank in April. It contains a wide selection of promotion pieces. If, for any reason, you do not receive your brochure, write to: W. H. Stetser, Vice President, American Express, 65 Broadway, New York 6, N. Y. r/// - / * * * < 4 5 * * * ^ 3*5** Promotion Aids Now Available to Help You Serve Regular Customers and Win New Ones A complete portfolio of available promotion pieces is being mailed to every one of our bank agents. The pieces are designed to tie in closely with the national advertising for American Express Travelers Cheques . . . using the same appealing cartoons and full-color paintings. Some of these sales aids include: Posters by George Hughes and Steven Dohanos Attractive statement enclosures Blotters for bank counters and writing tables Placards and display suggestions Mats for local newspaper advertising Radio commercials for local stations With our consistent and intensive national campaign, we are confident you can look forward to a real increase in new customer demand for American Express Travelers Cheques. We have tried to design in tegrated, local aids that will help you obtain a good share of increased American Express Travelers Cheque business. We trust you will like them and will feel free to order all you can use. A merican E xpress T ravelers Cheques https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The Most Widely Accepted Cheques in the W orld Northwestern Banker, April, 1949 indepen den t Hankers it aid A nnual Vanrentian Central Western Area Well Represented in Meeting in Biloxi, Mississippi WELL-KNOWN Iowa banker, E. E. Manuel, president of the George State Bank at George, Iowa, was elected president of the In dependent Bankers Association last month at its annual convention held in Biloxi, Mississippi. Mr. Manuel for several years has been very active in the work of the Association and the past year has been vice president. Other newly elected officers are C. R. Bell of Anniston, Alabama, and Guy Sturgeon of Sher idan, Wyoming, both of whom were named vice presidents. It is expected that Ben DuBois, well-known Sauk Centre banker, will be renamed secre tary and that Harry Lee of Browerville, Minnesota, will be re-elected treasurer. Both of these offices are handled by appointment by the Coun cil of the Association. A More than 400 bankers attended the Biloxi meeting at which the Inde pendent Association adopted a resolu tion opposing branches for Savings and Loan Associations except where they are specifically permitted by state laws. Two other resolutions were adopted, one of which supports the bill in congress for the conversion of na tional banks to state chartered insti tutions, the other resolution opposing “preferential treatment” for the Fed eral Reserve Board not granted as well to the comptroller of the cur rency and the Federal Deposit Insur ance Corporation. Most of the speakers at the Biloxi meeting also advocated more aggres sive opposition to branch and holding company banking, and expressed their opposition to the movement now on E. E. M A N U E L H eads Independent Bankers FIELD WAREHOUSING Provides: See You Aboard the . . . warehouse receipts against an inven NEBRASKA BANKERS tory stored on the customers’ premises. G R O U P T R A IN TOM C. CANNON We District Manager invite inquiries and investigation. St. Paul Terminal Warehouse Co. DES MOINES OFFICE 511 Iowa-Des Moines National Bank Bldg. OMAHA OFFICE 1105 First National Bank Building T. C. CANNON District Manager Telephone Atlantic 9611 Northwestern Banker, April, 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 425 East 8th Street. St. Paul, Minnesota OFFICES ALSO LOCATED IN MINNEAPOLIS MILWAUKEE CHICAGO DETROIT 27 foot in Washington to consolidate the three bank supervisory agencies which they feel would be a further step toward banking monopoly. A large delegation of hankers from Minnesota, North and South Dakota and Iowa attended the Biloxi meeting. Prominent in arranging various con vention entertainment and transpor tation were officers of the Marquette National Bank of Minneapolis, includ ing president Russell L. Stotesbery and vice president Charles C. Rieger. They, in conjunction with Charles C. Kuning, vice president of the Ameri can National Bank and Trust Com pany of Chicago, staged a get together and social hour in the Sky Lounge of the Buena Vista Hotel for visiting bankers. Convention speakers said in part: LEO W. SEAL, president, Hancock Bank, Bay St. Louis, Missouri: “The records show that every nation in his tory that taxed its people over 30 per cent of the national income soon went bankrupt or was ruled by a dictator or tyrant.” “A new concept of the tax function has prevailed in Washington for the past 16 years.” “The Government today considers taxation as an instrument to equalize income, prevent inflation, maintain full employment and control the busi ness cycle. These concepts are a very essential part of the social revolution which is now taking place in this na tion under the false name of progress.” CARROLL F. BYRD, chairman, First National Bank, Willows, Cali fornia: “ If the present trend toward banking monopoly is permitted to con tinue to spread in the United States, it becomes progressively easier for left wing advocates of Government absorption of our free enterprise sys tem to make a case, and the pattern for socialization of all business and industry is prepared.” SENATOR JOHN STENNIS, Missis sippi: “ I am opposed to any effort to curtail or restrict the individuality or integrity of the Federal Deposit In surance Corporation. “The FDIC has served us well in its present form, and it should not be merged with any other agency or otherwise consolidated under the Hoover Commission program.” (Continued from page 17) his sons, Earl and Lloyd, went on ac quiring land and producing livestock under the firm name of T. P. Hamilton and Sons, with their 5B brand so ad vertised. When an isolated tract was bought by Lloyd at the minimum price of $1.25 an acre, objections were filed and the claim made that the 13-yearold youth had no use for the land. Documents supported his claim to partnership in the association of father and sons, and the sale was approved in Washington. “A ruling was made then that such tracts had to be advertised by the name of the would-be purchaser,” Mr. Hamilton smiled. “ Soon after that, a stipulation added the provision that said purchaser had to be 21 years old.” The Hamilton partners further influ- prom ptly and efficiently. Our complete facilities are at your disposal. a t io n a l Our President, Henry H. Byers, rep resented the former owner, F. E. Duroe, when Mr. Untiedt bought the bank eight years ago. We are very proud of the letter Mr. Untiedt wrote us re cently when his sale to W. B. Hargleroad, Jr. and E. W. Youell, Ir. w as effected. (See story elsewhere in this publication.) We quote the letter here with his permission. "You have often said that there is more to selling a bank than just finding a man who wants to buy one. well equipped to handle their Chicago accounts N When for health reasons E. G. Untiedt, retiring President of the State Bank of Terril, located in Terril, Iowa, decided to sell his bank, it w as not by chance that he selected Bankers Serv ice Company to negotiate the sale. "I want you to know that Mrs. Untiedt and I greatly appreciate the w ay you have handled the sale of our bank, especially from the tax angle. will find this institution especially it y Says E. G. Untiedt THEY CAME ON HORSEBACK TO MAKE A LOAN Out hantons C "Y O U R SERVICES M OST VALUABLE" B ank "You have certainly proved it here. Your services have been most valuable to us." If, because of advanced age, ill health or other reasons, you are thinking of selling your bank, we invite you to confer with us in confidence with the assurance that no one will be told of your plans until you have authorized us in writing to do so. A M » TRUST CO M PAN Y https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Bankers Service Co. HENRY H. BYERS, President HARRY B. GIPSON, Vice President Register & Tribune Building Des Moines 9, Iowa Northwestern Banker, April, 1949 28 V enced laws concerning isolated tracts when Earl filed on a unit near Thedford. Later legislation regarding the arrangement of such tracts made the isolation of this acreage open to ques tion, and the decision in young Ham ilton’s favor was based on the slim margin of nine days the land had been isolated prior to his filing. “After that occurrence, provision was made that acreages must be iso lated for two years prior to such filing, and that they were to be sold for not less than double minimum, or $2.50 an acre,” the ranchman recalled. “ It was further ruled that a fieldman should visit such tracts, and that his appraisal of value would indicate the selling price.” Stetson, But no Toga A skim through the ranchman’s files explains a smiling observation made by Judge Quigley to the effect that Tom Hamilton wore no toga and made no laws, but caused a few to be passed. One such provision was added to the homestead laws as a result of Mr. Hamilton’s activity. A mental incom petent filed on a homestead, the ranch man explained, and had arranged with an eastern syndicate for immediate re linquishment which would allow him to speculate with the rights. “He didn’t get to dispose of the re linquishment right away, so his back ers had to build a shanty and buy a horse and buggy for him,” Mr. Ham ilton went on. “ I dug a well for him, Services for Banks Our booklet, “ Your Correspondent Bank,” describes the services we offer banks. We shall be pleased to send you a copy. Harris Trust and Savings Bank Organized as N. W. Harris & Co. 1882 • Incorporated 1907 115 West Monroe Street, Chicago 90 M em ber Federal Deposit Insurance Corporation Northwestern Banker, April, 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis in exchange for a year’s leasing of his land.” When later Mr. Hamilton was ap pointed guardian of the homesteader, the man was taken out of the state to prevent his qualifying for ownership. This process of “proving up” was carried on by Mr. Hamilton in his capacity of guardian, and when he lo cated the man in Montana, he had him brought back to Thedford. “There w e r e investigations, of course,” said Mr. Hamilton. As we closed the file, my host grinned across it. “The decision allowed me to make proof, and it was then a ruling was made forbidding mental incompetents to file on such acreages.” Nebraska had pulled its industries from the slump following World War I, and expansion was general in live stock and crop production. Alliance was a trading and medical center im portant to people of the Thedford area, and visits there included sights of great potato storage cellars under con struction. Red Triumphs were bring ing growers into prosperity, one out standing case being that of C. P. Mann, who bought seed at 18 cents a bushel one spring and raised 20.000 bushels of potatoes to sell at $1.00. Affairs in the bank at Thedford needed extensive readjustment, so Mr. Hamilton’s first official connection with the business was that of vice president in 1928. A lifetime interpst in world affairs and consideration of ranch country problems advanced his leadership, and in 1930 he was elected to the bank’s presidency. Reorganization included reliance on assets of Mr. Hamilton’s twin brother, Jim, then a resident of Cleveland. Okla homa, and owner of three producing oil wells. “ Our rating was good, and we had the confidence of our customers,” the banker recalled. “ Mr. Sanders of the Nebraska banking department sent us Jess Norwood as cashier, and he brought the bank into fine shape . . . I mean stock brought up to 200 cents on the dollar.” The bank’s solid and widespread service is a dream come true to Mr. Hamilton. As we drove with the Nor woods toward his ranch home, he talked of the country’s development since Kincaid days. “There’s always been need of a good bank,” he said, as we passed an old Kincaid (homestead) site. “Cash was scarce when this part of the country was settled. Over by Hyannis a cou ple of ranchers named Tom Lynch and Jim Forbes made quite a few loans to settlers. “A man could be visiting at one of their ranches, and see someone coming 4 v i y 't i < i y 29 • individual ledgers • general ledgers • daily financial statements • regular, and FH A, mortgages • loans and discounts • payroll • trust records this National Multiple-Duty y -jji/tfJb M it/ Accounting Machine w ill post them g j j ! . • • • And it can be changed from one job to another in a matter of seconds! One form bar is merely removed and replaced with another. Be cause this machine has standard keyboards, it can be operated by anyone who can type and run an adding machine. In a small bank, a single National M ultiple-Duty Accounting Machine can be kept busy all day handling all seven of the jobs noted above. In a larger bank, separate machines can be assigned to handle any one, or more of them. National provides a complete line of accounting machines to meet the needs of e v e r y department of e v e r y bank. O f the 100 largest banks in this country, 94 use Nationals. A 64-page booklet describing the National line is available FREE from your local National representa tive. You will find it interesting— and most useful for reference when accounting problems arise. G/fjStiofuU ACCOUNTING MACHINIS CASH R t G I S r m THE N AT I O NA L C ASH https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis REG ISTER COMPANY, DAYTON ♦ ADDING MACHlNtS 9, O H I O Northwestern Banker, April, 1949 30 on horseback to negotiate a loan,” he recalled. “ So many folks had just moved to the country, Forbes or Lynch had to depend on their judg ment of a man for himself, but usually guessed it right.” We recalled stories of a few years later when a woman near Hay Springs limited her loans to married men, and then only if she knew and approved the wife’s parents. “ It’s a point to consider,” Mr. Ham ilton admitted. “ In our bank we’ve loaned money to men who died before the account was settled, and their wives have paid every cent of it.” Depression Years Depression years were a severe test, he went on musingly; sometimes a good man went under through a vi cious combination of factors. “ It’s like that crazy quilt I was tell ing you about, with each piece show ing up the color of the one beside it . . . you have to consider a lot of things, and so does your banker, be fore you know whether to sell or bor row, and which is better to mortgage, your land or your cattle.” Good credit used wisely had helped his own business through the depres sion, Mr. Hamilton told us. He had developed a fine grade of Herefords with sire lines through such famous names as Beau Randolph, Domino and Mischief’s Return. Shorthorn crosses had helped bring some of the cattle into top markets and prize-winning lists, “ . . . But it seemed like every time I counted my cattle, I was short, during that worst period,” he said. “A couple of times I was able to iden tify a thief and take care of him, but I wasn’t always so lucky. Some men sold down to nothing in those times; some borrowed, and that’s what I did.” We spoke of the producer along the Niobrara who now runs two large Minili1iillllln# iiiiiiiiiiinimiiiiimii THE FIRST N A TIO N A L BANK IN ST. LOUIS tf* AV* ET. LOU IS' LARGEST BANK ©Vv v i>V ft* Northwestern Banker, April, 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Personnel trained to fulfill all corre spondent banking needs assures fast, dependable service to correspondents of the First National Bank in St. Louis. We cordially invite you to call on us for complete correspondent Member Federal Deposit Insurance Corporation ranches, but called himself “cattle poor” during the thirties. “That’s what I mean.” Mr. Hamil ton’s eyes reflected his satisfaction in the friend’s achievement. “That fel low told me that once he sat in his jitney on a street in Gordon and was hungry for a candy bar he couldn’t afford. He operated on borrowed money and had to figure close, but when cattle came up he cleared his loans. Now he uses a good plane to fly b a c k and forth between his ranches.” A light plane droned above the sand hill meadow a little later, and Mr. Hamilton identified the ranchmanpilot. “He used to hunt coyotes on horse back, and later with his hounds in a pick-up,” he said. “ Used to come into t h e bank to collect his bounty. Wouldn’t be surprised if he shoots ’em from the air now.” A few ranchmen have done just that since the blizzard of ’49 drove more eagles from the Dakotas into Nebraska, and their appropriation of the rabbits has left the coyotes even hungrier and bolder in calf slaughter. Mr. Hamilton pursues his policy of the patchwork quilt viewpoint, consid ering many angles as he works on the new problems. At the age of 87, he reads without glasses through a wide range of publications, channeling the news into consideration of local needs. Throughout his business area he will be longest remembered for his courage and unselfishness in establish ing a bank in years when such a ven ture didn’t look most favorable. We were told the story of the con ference by a man active in its session, and he recalled that Mr. Hamilton and his son had come with a small group of neighbors to arrange for establish ment of the bank. He was warned by men of experience of the hazards of the business under circumstances of the time, but his purpose was un shaken. Finally he was asked if he fully realized the risk, and if he were will ing to pledge his own hard-earned re sources to the undertaking. “And his answer,” said our inform ant, “was just what you would expect when you knew Tom Hamilton and his direct approach to problems. All he said was, ‘That’s what I came here to do.’ ”—The End. HOW TO SET UP RESERVES FOR LOSSES (Continued from page 18) with bank management on determina tion of what is a reasonable reserve for bad debts. The average agent is ac customed to examining businesses 31 generally — commercial enterprises — and therefore ordinarily expects a re serve to be based on a three- to fiveyear loss experience. Further, the average agent does not always understand that the extension of credit is a bank’s business, whereas it is but an incident to most businesses. The whole problem, economically, therefore, of a bank’s reserve for bad debts is entirely different than that of an ordinary business. New Reserve Method As you know, thanks to the work of the Nebraska Bankers Association and the American Bankers Association through its committee on federal leg islation and its subcommittee on taxa tion, following numerous conferences with the Commissioner of Internal Revenue, on December 7, 1947, the commissioner issued a Mimeograph No. 6209 entitled “ Reserve Method of Accounting for Bad Debts in Case of Banks,” which sets up a formula and a procedure for determining the allow able reserve for bad debts and what additions to such reserve will be al lowed, which the commissioner says will be approved in the case of a bank. The formula is based on the average loss experience on the loans of the individual bank over the past twenty years. It establishes a recognized ac counting procedure on which banks are entitled to rely. If banks and reve nue agents apply it in the spirit in which it appears to have been promul gated, it ought to eliminate most of the controversy which heretofore has arisen when such method of treating bad debts is used. What it does is this: 1. It recognizes that a hank’s average loss experience over a twenty-year period is a fair meas ure of the losses it may reasonably expect to incur on its loans out standing at the end of a given year, 2. It sets up a specific formula for determining what is a “reas onable addition to reserves” in the case of banks, and 3. Puts a ceiling on the amount of reserve for bad debts which can be accumulated. What New Rule Says It says this: A period of 20 years, the taxable year and the 19 preceding years, is a sufficiently long period of a bank’s experience to cover a reasonable cycle of good and bad years. Therefore, the taxpayer-bank’s own actual expe rience during that time is indicative of the probable annually occurring losses from bad debts that bank will have. So, to determine what is a “reasonable” reserve for bad debt loss https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis es, we will be guided by the particu lar bank’s own experience. We will determine the permissible amount of reserve for bad debts, and the permis sible “reasonable annual addition” to reserve for bad debts in this way: First, we will use a “moving aver age experience factor” to determine what portion of the outstanding loans of the bank at the end of its tax year probably will become “bad” and have to be written off eventually as worth less. That “moving average experi ence factor” is to be determined from the actual experience of the particular bank. Incidentally, the word “moving” means only that the “average experi ence factor” changes each year, be cause, of course, each year in deter mining your “average experience fac tor” you include the taxable year and the 19 preceding years. Thus, in 1948 you would have used the years 19291948, inclusive. In 1949 you will use the years 1930-1949, inclusive. Since the ratio of your losses to your loans in 1929 doubtless was different than will be that ratio in 1949, your “aver age experience factor” for 1929-1948 was different than your “average ex perience factor” for 1930-1949, hence the factor “moves” or changes each year. THE DROVERS “ YELLOW BOY ADVICE IS W ELL KNOWN TO BANKERS WHOSE CUS TOMERS SHIP LIVESTOCK TO CHICAGO. IT IS THE SYMBOL OF FAST, FRIENDLY SERVICE IN COLLECTING LIVESTOCK DRDYERS RATIONAL BANK DRDYERS TRUST & SAVINGS BANK Northwestern Banker, April, 1949 32 Determining Experience Factor The “moving average experience factor” is determined in this way: (a) For each of the 20 years in volved you determine what the ratio was between net bad debts for that year—that is, the net between that year’s bad debts and that year’s re coveries of bad debts previously writ ten off—and the eligible loans out standing on your books at the end of that year, meaning by “eligible loans,” your loans and discounts, not securi ties and excluding loans which were 100 per cent insured by the federal government, and excluding also any loans that were not comparable in na ture to the loans you had outstanding at the end of the taxable year. Hav ing determined the ratio of net losses to loans and discounts for each of the 20 years, you simply determine what the average ratio was by adding the ratios together and dividing by 20. The result is your “moving average expe rience factor.” Or you can do it another way. You can add together the total amount of the loans and discounts at the end of each of the 20 years, and divide that sum into the sum of your net bad debts for the 20 years, and use that resulting figure as your axerage expe rience factor. Either way is accept able so long as you use the same meth od consistently. The first is an aver age of ratios, the second is a ratio of totals for the 20 years, and they will produce different factors, so you should try both before deciding which to use. Having determined your average ex perience factor for the year, the aver age percentage of your outstanding loans and discounts at the end of each year during the period which became worthless, you simply multiply the sum of the eligible loans and discounts outstanding at the end of the taxable year by that percentage and the result is the amount of your permissible re serve for bad debts in the year you change to that method, and the mini mum amount you will be entitled to maintain thereafter. Ruling Applies to All dor an enlightened nation Young America is served by the most extensive public school system in the world— a distinguished national asset bringing education within the reach of all. It is a created asset, financed in great measure through the sale of bonds issued by communities, counties, states and other taxing districts. Halsey, Stuart & Co. Inc. for many years has been identified with municipal bonds of this type, making them available to thousands of banks and conservative investors. Their desirability as investments has been maintained by demonstrated safety through the years together with their valuable exemption from federal income taxes. Send without obligation for our latest offering list. REPRESENTATIVE SCHOOL BONDS Cleveland Heights City School District, Ohio Lane County, Oregon, School District No. 4 (Eugene) V/2 % Bonds 2 & 2Yt% Bonds Colorado Springs, Colorado, School District No. 11 114 & 1 / 2 % Bonds V/4 % Bonds Evanston, Illinois, Township H.S. District No. 202 2Vs% Bonds Houston, Texas, Independent School District 2 Scranton, Pennsylvania, School District Three Elected to Board Tacoma, Wash., School District No. 10 2Vi, 2Va & 3% Bonds W ausau, Wisconsin / 2 , 2M & 3% Bonds V/2 % School Bonds HALSEY, STUART &, CO. I n c . m SOUTH LASALLE STREET. C HICA G O 90 Northwestern Banker, April, 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • 3 5 WALL STREET. NEW YORK 5 • AND OTHER The principles I have previously ex plained concerning the treatment of debts subsequently charged off and re coveries of debts previously charged against the reserve are applicable to taxpayers generally and, of course, ap ply fully to banks in subsequent years of operation under the reserve method. Recoveries are credited to reserve for bad debts, charged to cash. Debts which become worthless are debited to reserve for bad debts, and the asset account is credited. On January 24, 1949, the Commis sioner of Internal Revenue issued an other ruling on this subject, being I. T. 3936. This I. T. states that re serves for bad debts established by banks for Federal income tax purposes should be reflected in the regular books of account, rather than on aux iliary records. It also states that if a bank which changes to the reserve method of accounting for bad debts previously has set up on its books con tingent reserves or allocations of sur plus against bad debt losses which have not been recognized for Federal income tax purposes, such bank may create bad debt reserves out of such items of contingent reserves or alloca tions of surplus without loss of per missible deductions from taxable in come on account of creation or addi tion to a bad debt reserve.—The End. PRINCIPAL CITIES Election of two zone sales managers and a branch plant manager to the board of directors of the Todd Com pany, Rochester, New York, was an nounced following the annual meeting. Named to the board were George H. McGill, manager of the Boston sales office; Robert E. Hall, Jr., manager of the Atlanta sales office, and Charles P. Hopley, manager in Denver. 33 Equipment Trust Are Exceltent Hunk investments Ce History of Rail Financing Shows Rolling Stock Is Essential and Earns Its W ay By RAYMOND TRIGGER Investment Analyst New York City ERHAPS a forerunner of all leasepurchase, or pay-as-you-use plans, were railroad equipment trust cer tificates. The first of these unusual investments were issued in the United States more than 75 years ago. They have stood the test of time and have been polished and perfected during the generations. The general under lying principles appear to be wholly sound. A piece of capital equipment, endowed with earning power, destined to continue earning for many years, is a high class investment. In the nature of things, not every investor, individual or corporate, fan cies the idea of ordering and paying for a freight car, although it may readily be admitted that such a hum drum, yet vital, link in the nation’s transportation sj^stem likely would prove sound and profitable. By way of an equipment trust, though, any investor can own a proportionate share, usually in multiples of $1,000, in the rolling stock of almost any of the country’s railroads. P This is a discussion of factors affecting your investment port folio. If you have any questions, or if you find yourself in dis agreement with comments here in, your letters, addressed to the NORTHWESTERN BANKER, will be welcome and will be answered here if the subject matter is of general interest. Under no cir cumstances will the editor of this column discuss specific securities. Title Held in Trust ligations reflects the needs and wishes of the users, the country’s railroads. The amount outstanding, as noted, is the remainder after regular annual payments. Both figures are small in relation to corporate financing in the United States. Nonetheless, there is today, as there has been for decades, a small minority of informed investors who prize rail equipment issues. These obligations have, in fact, a record which fully justifies the high regard in which they are held. Strictly, perhaps, the investor does not own the equipment, but title there to is normally held in trust for him until the user, the railroad, has com pleted all payments and has returned to the investor his interest and prin cipal. Also, strictly, the income re ceived by the investor is called divi dend rather than interest. Despite the fundamental appeal of railroad equipment trust certificates, their merits are not widely known. One reason is that, although some $4 billion par value have been created and sold to investors, only about $1.5 billion are presently outstanding. Just as an individual pays for an automo bile in installments over the months and, with every payment, reduces the outstanding debt, so a railroad, leasing equipment pays off in part—anywhere from a tenth to a twentieth—every year. The total of rail equipment ob- Loss to investors in rail equipment obligations has been trifling. The only discoverable case of a loss of part of the principal happened more than ten years ago. Something less than 60 per cent of face value was salvaged and distributed among certificate owners. In the case of two other railroads, cer tificate holders did suffer, or accept a reduction in the dividend rate. These are the recorded exceptions and they occurred in the long depression of the ’30s. Otherwise the record is without blemish. The most trying time for a railroad to maintain its obligations to investors is during bankruptcy. Equip ments have been tested under such circumstances many times. Barring a few minor and temporary delays, how ever, all the roads which got into fi nancial difficulties in the great depres https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Losses Trifling sion made regular and full payments to holders of equipment certificates, except for the three cases mentioned. A record such as is held by railroad equipment certificates does not just happen. A moment’s consideration will suggest the two prime reasons. One is that the major purpose of a railroad is to move goods. Various facilities are necessary, workers are essential, engines to haul trains is vital, but a freight car in which to carry the goods is the key factor. Roll ing stock is essential. The other consideration is that a freight car has a definite earning pow er. There is, in fact, the system of per diem charges which illustrates this. When a freight car is on the lines of a railroad which does not own or lease it, a daily charge is made. Naturally, when the roads think the charge is high, they endeavor to keep other’s freight cars moving from their lines as fast as possible. When the business available makes a per diem charge seem relatively low, cars are kept on the per-diem-paying lines as long as possible. Canada and the United States have even wrangled a little, at times, as to which was hold ing the other’s cars unduly long. In sum, rolling stock is essential and it earns its way. Technical Aspects Certain of the technical aspects de serve attention. To begin with, the holders of railroad equipment trust certificates are not protected by a mortgage on the rolling stock. The certificate represents actually owner ship of valuable and profitable equip ment. The railroad using the equip ment does not own it; it rents it from a trustee in whom title is vested for the benefit of the certificate holders. This arrangement prevails under the “ Philadelphia” plan, under which al most all railroad equipment financing has been done in recent years. There Northwestern Banker, April, 1949 34 Investments V are others of less interest; the “ New York” plan, essentially a conditional sales agreement, and chattel mort gages. The rental paid by the railroad is sufficient to meet the regular divi dends and installments on principal. When, but only when, the final divi dend and the final principal payment has been made, title passes to the rail road which has been using and pay ing for the equipment. There are usually additional safeguards sur rounding the investment. The rail road using the rolling stock may guar antee by endorsement the principal and dividends payable on the certifi cates. The road is bound, frequently, to keep the equipment insured and repaired and undertakes other impor tant protections to the investor. The potential investor in railroad equipment certificates will consider the term of the obligation, the down payment and the interest rate. The last is normally closely in line with the yield from other high grade serial obligations, modified somewhat by the first two considerations. Basis of Issue Most rail equipment certificates are issued as one-to-10 or one-to-15 year obligations. The down payment ranges from practically nothing to as much as one-third of the cost of the new equipment. These are important mat ters, but they do not automatically resolve themselves. On the question of the term of the obligation, certain types of equipment are expected to have a longer life than others. For example, a class A box, stock and poultry cars is expected to have a useful, depreciable life of 35 years. Against this, a class C refrigerator car is accorded a useful, depreciable life of 21 years. An obligation maturing serially over 15 years issued in con nection with the former may be as sound, or sounder, than one having a life of from one to 10 years, but resting on the latter type of equip ment. In theory, at any rate, the higher the down payment, the safer the re maining lien. Against this may be measured the return afforded by the investment. The thinner the margin, the higher the yield, of course. But, just because the original margin is thin, it does not follow that the rail road leasing the equipment is dubious as to its value and usefulness. It may be no more than a reflection of P rospectus on request fr o m P r in c ip a l U nd erw riter IN V E ST O R S SY N D IC A T E M in n e a p o lis , M in n eso ta the road’s current financial position. If this is extremely easy, the road may elect to make a relatively large down payment and limit the term to 10 years. The cost to the road would be proportionately lower than the cost to a road which had better uses for its cash and therefore made a small down payment and spread ma turities over 15 years. Incorporated M em b ers Chicago Stock Exchange Underwriters and Distributors of Investment Securities 200 Equitable Building Phone 4-7158 Teletype DM 184 135 South LaSalle Street Phone Andover 6700 Teletype CG 245 DES MOINES, IO W A CHICAGO, ILLINOIS Northwestern Banker, April, 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis > Rolling Stock Is Test In the final analysis the quality of a railroad equipment trust certificate rests on the rolling stock. It is there fore an important safety factor that most certificates run to less than onehalf of the depreciable life of the equipment. Additionally, that depreci able life is, almost always, notably shorter than the actual and useful life of the equipment. It is probable that every railroad owns equipment, acquired with the aid of an issue of rail equipment certificates long since paid off and forgotten, which is still more than earning its way although it has outlived its “depreciable” life. In practice, it will be found that, even if the railroad using the equip ment goes bankrupt the court will see to it as a matter of routine that the carrier continues to function, in the public interest, if for no other reason, and a road cannot function without rolling stock. But that rolling stock on which all equipment certificates have not been paid is not the property of the railroad using it. The rent and the annual installments have to be paid. If, as is customary, equipment trust certificates are issued in connec tion with new rolling stock—this is just the equipment which the railroad, be it solvent or in the hands of the court—will hang onto longest because it is the most productive. Further, and in the remote contin gency that the bankrupt railroad has to relinquish the equipment, new or relatively new equipment will be in greater demand by other carriers be cause they are more efficient tools and require fewer repairs and a smaller upkeep. The trustee, under these un likely and extreme circumstances, still should be able to rent or sell this equipment. Another Angie WHEELOCK & CUMMINS A There is another angle that is in teresting. Railroad equipment ulti mately wears out or costs more to patch up than it can earn. But not in the early years of its life. If, for example, equipment is leased by a road with the aid of a 15-year 20 per cent down payment arrangement, that rolling stock may be just as useful and therefore just as valuable when it is only five years old as when it was new. But at the age of five years the original 80 per cent borrowing, by 7- A i Investm en ts virtue of five annual principal pay ments, will be cut to 53V3 per cent, with a corresponding reduction in an nual dividends. The “ margin” or “ equity” on this basis will have risen from the initial 20 to 46% per cent. Even if it is insisted that the equip ment has suffered some wear and tear in those first five years of service the “ equity” will, nevertheless, be double, or thereabouts, what it was originally. Thus, remaining outstanding certifi cates resting on specified rail equip ment may be better protected after five annual reductions have been made than when the rolling stock was new. This, in its turn, may explain why it is seldom that holders of rail equip ments will part with them and why, should they come to market, they ordinarily command excellent prices. There are, of course, large commercial bank buyers of serial rail equipments who do not choose to go beyond the 10-year maturities. But logically, they would be glad to replace maturing certificates with outstanding obliga tions that have become 10-year maturi ties with the passage of time. Here, then, is another contribution to the strength of the bid side of the rail equipment market. There have been occasions in the past when the medium and smaller commercial banks have been virtually frozen out of the market for new rail equipments. Often enough, it is be cause some large metropolitan bank has outbid dealers and taken an entire new issue. Such a purchase must be for investment and commercial banks https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 35 are not permitted to “trade” equip ments as they may governments and municipals. 1948 Issues High There have also been years in which relatively few new issues of rail equip ments were marketed. In 1948, how ever, 78 issues of equipments totaling $426,502,000 were sold by the country’s railroads. All but one were purchased by investment bankers and the single exception was a small issue. Distri bution of the issues bought by dealers was widespread and many a medium sized bank was able to purchase a few rail equipments for investment. As a consequence of the changed attitude of the large commercial banks, leading dealers in rail equipments have a fair inventory on hand from which the prospective investor may make his selection of desired maturi ties and credit standings. The out look, at least through 1949, is for an excellent flow of new rail equipment obligations from a number of the country’s leading railroads. Thus, the year may well offer an opportunity to the investor, seldom available, to se lect maturities and the obligations of roads which particularly appeal.—The End. in rp si m en i JVews LARGE number of middlewest investment bankers attended the Central States Group Meeting of In vestment Bankers of America at the Drake Hotel in Chicago last month. The Central States Group is comprised A IV e offer fo r sale the notes of these representative finance companies Aid Investment & Discount, Inc. A kron, Ohio Automobile Banking Corporation Philadelphia Colonial Finance Company Lim a, Ohio Commercial Securities Company B aton R ou g e, L a. Consolidated Finance Corp. Indianapolis, Ind. Contact Purchase Corporation D etroit Interstate Finance Corporation Dubuque, Iow a Interstate Securities Company Kansas City, Mo. Liberty Loan Corporation Chicago Mercantile Acceptance Corporation S a n F rancisco Mercantile Discount Corporation Chicago Manufacturers & Jobbers Finance Corp. Shelby, N. C. SHORT MEMO . . . Apparently our booklet called “ How to Invest” has helped a lot of people. Mossier Acceptance Company N ew Orleans National Discount Corporation South B en d : North American Acceptance Corporation Chicago It’s a thirty-two page look at the whole problem of investing, points out the basic principles any beginner should know— and experienced in vestors should review. We thought your friends and depositors might like to see it. So bulk copies are available with out charge. If you’d like some, just write— Northern Illinois Corporation D e Kalb, III. O ’ Dea Finance Company D ee M oines Securities Acceptance Corporation Omaha Southwestern Investment Company Amarillo, Tex. Winter & Hirsch. Incorporated Chicago Department W H -io M errill L yn ch , P ierce , F enner & B eane U n d e rw rite rs a n d D istrib u to rs o j In v estm en t S e c u ritie s B r o k e r s in S e c u ritie s a n d C o m m o d ities 70 Pine Street, New York 5, N. Y. Offices in 96 Cities A SH W ELL & COMPANY 176 WEST ADAMS STREET CHICAGO, ILL. Commercial Paper Collateral Loans Northwestern Banker, April, 1949 36 Investments y of investment men in Illinois, Indiana, Iowa, Nebraska and Wisconsin. Andrew M. Baird, A. G. Becker and Company, Chicago, was chairman of the meeting. The municipal forum was conducted by Art Evans of the Continental Illinois National Bank of Chicago. Bond men are looking forward to the coming issue of the Iowa Soldiers Bonus bonds. Iowa Attorney General FINANCIAL Larson was in Chicago last month con ferring with Chapman-Cutler, bond at torneys, on technical points of the issue. Before any bonds can be issued, the Iowa Supreme Court must rule on the legality of an amendment passed by this year’s Iowa legislature which would pay $50,000,000 of the expected $85,000,000 required for the bonus from surplus funds. This would leave $35,- STATEMENT The bureau of securities of the Ne braska Banking Department has is sued “cease and desist” orders against several Canadian securities brokers. The department said the companies were not licensed or registered to do business in Nebraska, and added that solicitations “appear to be in violation of the State Blue Sky Law.” DECEMBER 31. 191« ASSETS CASH ON H A N D A N D IN B A N K S ..................... $ 5,186,464.30 B O N D S: U. S. Governm ent.......................................... 48,349,457.63 Other B onds..................................................... 17,565,399.14 CASH A N D B O N D S ................................................................................ * 71,101,321.07 F IR S T M O R T G A G E LOANS ON R E A L E S T A T E .................... 39,288,726.09 F. H. A. LO A N S .......................................................................................... 33,627,096.25 LOANS G U A R A N T E E D B Y V E T E R A N S ’ A D M IN IS T R A T IO N 7,919,786.90 H O M E OFFIC E B U IL D IN G ................................................................ 790,000.00 O T H E R R E A L E ST A T E A N D SALES C O N T R A C T S .............. 262,591.77 S T O C K S ........................................................................................................ 227,206.00 IN T E R E S T A N D R E N T S ON IN V E S T M E N T S A C C R U E D B U T N OT Y E T D U E ......................................................................... 809,460.47 IN T E R E S T A N D R E N T S DU E ON IN V E S T M E N T S (None of which is past due more than 90 d a y s ).............................. 114,295.92 O T H E R ASSETS, P R IN C IP A L L Y N E T P R E M IU M S IN COU RSE OF C O L L E C T IO N ............................................................ 2,406,554.53 LOAN S TO P O L IC Y H O L D E R S .......................................................... 13,975,787.01 T O T A L A SSET S................................................................................. $170,522,826.01 LIABILITIES G eneral A IvTvT 1 a q vr|^ m e r ic a n W A L T E R L if e I n s u r a n c e Co m p a n y W . H E AD, PRESIDENT S a i n t Louis Did you know that this company pioneered in putting Bank Insurance on a scientific basis and forcing rate reductions ? Ask us about our counseling service. F IR S T N A T IO N A L B A N K B U IL D IN G Northwestern Banker, April, 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • C H IC A G O Six Omahans have organized an in vestment service designed to “pull dollars out of the sock” and put them into something less battered by in flation. The company is EPOC, Inc. Victor E. Spittler, attorney, said it stands for “ Encouragement of Private Owner ship of Capital.” The purpose is to make available “tangible forms of wealth best suited to withstand the ravages of the present era of patent medicine money schemes.” Mr. Spittler said EPOC aims to be the channel for investment in precious gems and metals. The six stockholders listed capital at $25,000, of which $10,000, they said, was paid in. Harold Smith, an associate of Buf fett and Company, Omaha investment bankers, is president of EPOC. Mr. Spittler is secretary. Carl A. Falk of Buffett and Company is treasurer. Scarborough & Company Insurance Counselors 3, I L L I N O I S * K V r A P O R T IO N OF C U R R E N T Y E A R ’S E A R N IN G S A VA IL A B L E FOR F U T U R E D IV ID E N D D E C L A R A T IO N TO P A R T IC I P A T IN G P O L IC Y H O L D E R S ........................................................... 211,500.00 N E T E A R N IN G S TO BE D IS T R IB U T E D TO P O L IC Y H O LD E R S IN A C C O R D A N C E W IT H T H E PU RC H A SE A G R E E M E N T ........................................................................................ 2,038,681.09 SU R P L U S ...................................................................................................... 3,294,321,66 T O T A L L IA B IL IT IE S ..................................................................... *170,522,826.01 ^ A. Joseph Kadlecek of Omaha, sales manager for Smith-Polian and Com pany, investment banking firm, has been elected a director of the AlabamaCalifornia Gold Mining Company. Another Omahan who is a new di rector of the gold mining concern is Paul Van Valkenburgh, assistant re gional manager for the General Motors Acceptance Corporation at Omaha for 20 years. PO L IC Y R E S E R V E S ................................................................................ $157,162,827.75 MASS H A ZA R D R E S E R V E FO R GROU P IN S U R A N C E -----1,633,506.00 P R E M IU M S A N D IN T E R E S T P A ID IN A D V A N C E .............. 1,177,682.38 R ESE RV E FO R T A X E S ........................................................................ 1,448,266.32 E SC R O W FU N DS (Deposited b y mortgagors for payment of taxes and expenses)........................................................... 472,476.30 R E SE R V E FO R A CC OU N TS N OT Y E T D U E ............................ 866,013.55 P O L IC Y H O L D E R S ’ D IV ID E N D S ..................................................... 2,217,550.96 T O T A L ................................................................................................... $164,978,323.26 ■ ■■—--- 000,000 in bond issues needed to pay the remainder. The legislature’s amendment stipu lates that this amount would be sold in blocks of $8,750,000 each, so as to pay the bonuses as required, then issue an additional block in the same amount as the money is needed. It is not known when the Supreme Court will hand down its ruling on the matter, but it is expected to take two or three months. The original measure, approved by Iowa voters last fall, was to pay the soldiers bonus to World War II veterans and provided for issuance of bonds for the entire amount of the bonus. STATE 2 4325 to Banks ■4 i 37 IN S U R A N C E 4 Ilea sons W h y Life Salesmen Should He H a ppy 1— Population Increasing 2— There Are More Families 3— Family Income Higher 4— Income Brackets Higher By HAROLD M. STEWART, C. L U. Exec. Vice President Prudential Insurance Co. H A R O LD M. S T E W A R T “ Business Should Be G ood ” T IS through the continued coura this year. If we build our military geous spirit of men made free forces more, there will, of course, be through free enterprise that we can bidding for men and materials. Much make 1949 a strong and sound year for of our future depends on a few men America’s commerce. This year we behind the iron curtain thousands of must continue to prove the merits of miles away. industriousness and initiative. This is No improvement can be looked for especially important to both you and in the tax picture, so, for nearly all me because we are in favor of keep individuals, the creation of an estate ing the American Agency System, and by life insurance is the only way left. we know that the best way to defend In the year ahead, people still will and enlarge the Agency System is to have money, but they’ll be more selec constantly improve the quality of our tive in their disposition of it. service. It has been interesting to me to This year business should be good, note also some long-range trends in but competition will be increased to America, which I think should give squeeze the marginal men. We must you encouragement about the outlook make sure that none of us is in this in 1949 and beyond. group. I have in mind these facts: More money probably will continue One—The population of the country to be placed in plant expansions and is increasing. in improvements to increase the pro Two—The number of families is in ductive wealth of the country. This will help to keep our economy in prop creasing at a rate more rapid than the er running order, and life insurance population. Three—Income per family is higher. companies will do their share of this investing. Four—There are more families in Mortality rates should continue to the middle income brackets; fewer in be favorable. It is interesting to note the high and low brackets. that from 1925 to 1946, death rates These trends add up to more pros went down 14% per cent. Our life pective policyholders with more money expectancy is currently increasing al to save in the form of insurance. most five months every year. Because of their experience with Persistency should continue to be boom-and-bust times, people today are good; incomes are up, and public ac more cautious than in past times of ceptance of the necessity of life in prosperity and this has a stabilizing surance is constantly increasing. Much influence on our economy. People are will depend on our armament program more serious minded now than they https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis were when times were prosperous in the past. This places them in a better frame of mind for life insurance. The Social Security base will al most certainly be broadened, and this will make an even larger block of our people more conscious of their need for life insurance. We all know how Social Security has boosted interest in life insurance. Soon the coverage may well spread over almost 100 per cent of our working force. We are fundamentally in a service market. We have found that the life insurance market is largely what the underwriter himself makes it. He can, to a large extent, determine the size of the sale. We know that with the latest training methods, or represent atives can greatly increase the amount of insurance owned by the family. With modern training methods, the $1,000 and $5,000 habits are changed into real programming procedures. The fact that many times a second sale is made to the same person with in a few months of the first, too fre quently by another insurance man, shows that the first man could have done a better job the first time. Wouldn’t it have been better if each man served one client with a good program, rather than have both under writers make a sale to two prospects? The money is there, the need for life insurance is there, the people are receptive to your story. There will be more children, more homes, more Northwestern Banker, April, 1949 Insurance jobs. They all set the stage for more insurance. The year can be a good one, a chal lenge that I’m sure you can meet suc cessfully.-—The End. Annual Meeting Assets, surplus and premium vol ume of Employers Mutual Casualty Company all reached new highs dur ing 1948, according to figures an Bank Insurance Problems? Expert advice, excellent coverage and an excellent company. You get all this when you insure with the S a in t P a u l-M ercu ry Indemnity Company. Call a Saint Paul agent! B A N K ER S BLANKET BONDS nounced by President John F. Hynes at the company’s annual meeting at its home offices in Des Moines. Admitted assets increased to $16,320,000, for a gain of $3,054,000 over 1947. The surplus reached a total of $3,059,793, an increase of $917,000. Pre mium volume in 1948 set a new high of $13,630,000, for a gain of $1,700,000 over the previous year. President Hynes announced that the company now has 415 employes, oper ates in 23 states and has branch offices in 14 states. Branch offices are located in Chicago, Illinois; Omaha, Nebraska; Minneapolis, Minnesota; Wichita, Kan sas; Philadelphia, Pennsylvania; Den ver, Colorado; Lansing, Michigan; Charlotte, North Carolina; Jackson. Mississippi; Dallas, Texas; Kansas City, Missouri, and Milwaukee, Wis consin. All officers of the company were re elected at the annual meeting. Besides President Hynes they are: John W. Gunn, chairman of the board and treasurer; M. J. Wilkinson, vice presi dent and superintendent of agents; W. J. Hynes, secretary, and W. Z. Proctor, general counsel. Director re-elected for three-year terms were John W. Gunn, Carl Muelhaupt, Dr. L. E. Kelley, Amos C. Pear sall and W. Z. Proctor, all of Dos Moines. Harry Wilkinson SAINT PAUL-M ER III WEST FIFTH ST Iowa’s Largest Exclusive Hail Insurance Company STATEMENT OF CONDITION At Close of Business, December 31, 1948 ADMITTED ASSETS: Cash in. Banks and Home Office...............................................................$ 487,429.95 U. S. Government and Other Bonds........................................................... 1,467,036.47 Accrued Interest ........................................................................................... 5,595.88 Total Admitted Assets.............................................................................................. $1,960,062.30 LIABILITIES: Reserve for Unpaid Losses and Adjustable Expense............... ..............$ (Losses incurred and in process of adjustment) Reserve for Taxes........................................................................................... Contingent Commission ................................................................................ 25,000.00 Total Liabilities ............................................................................................ $ 94,822.15 39,822.15 30,000.00 Policyholders' Surplus ..................................................................................... .............. $1,865,240.15 $1,960,062.30 A Few Desirable Locations For Agents Square Deal Insurance Company (Mutual) C. FRED MORGAN, President Liberty Building N o r t h w e s t e r n B a n k e r , A p r i l , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Des Moines 8, Iowa Harry Wilkinson, 90, retired editor and publisher, died in Chicago. March 18th. For 43 years before his retire ment in 1941, he published the Chicago Banker, a weekly. Until recent years he was a familiar figure at conventions of the American Bankers Association, and he had a wide acquaintance among bankers. Mr. Wilkinson became city editor of the Pittsburgh Times in 1883 and of the Chicago Daily News in 1892. A year later he became editor and pub lisher of the Chicago Daily Globe, and in 1898 of the Chicago Banker. He is survived by his widow, Mary Wardell Wilkinson, and by one son, William C. LEGAL QUESTIONS (Continued from page 20' Yes. The landlord was guilty of contempt of court in failing to provide hot water and heat to the apartments as directed by the injunction and it was proper for the federal court issu ing the injunction to commit him to jail until he should do so. The U. S. Circuit Court of Appeals, Fifth Cir cuit, has so held in a recent decision involving similar facts which came to it on an appeal which was taken by an Illinois landlord.—The End. Insurance 39 Organize "Trail M a z e r s" ila b MONEY SAVED “ T R A IL B L A Z E R S ” -—Left to right in the front row: Edmund S. Jones, Mrs. Grace Johnson, Ethelynde Kelly, Mabel Dahl, Gina Nilsen, Lucile Evans, Morris S. Sampson, Mrs. Ruth Wittich, Earl D. Cardie. Back row: Arthur W. Erickson, Wm. P. Kunze, Merth E. Mortenson, Ralph W. Manuel, Signor R. Silverness, Harold R. Higley, Ruth M. Anderson, Carl N. Brackey, Paul W. Petterson, Mrs. Ella Hallgrain, Frederick F. Zander and Russell L. Stotesbery, president of Marquette National Bank. of the “ Trail Lake Insurance Agency and Bank Blazers,” a group composed of Shares, Inc. officers and employes with more than Twenty of the 21 men and women 15 years of service at Marquette Na eligible for membership in the group tional Bank of Minneapolis and its were present at the organization meet affiliated banks and insurance agen ing. Oldest in point of service was cies, was completed at a recent meet Frederick F. Zander, vice president of ing at Minneapolis Athletic Club. Marquette National Bank, whose asso Members of the Marquette family ciation goes back 33 years. represented in the “ Trail Blazers” are Edmund S. Jones, a vice president Marquette National Bank, Marquette of Marquette Bank, was elected presi Insurance Agency; University Nation dent of the new organization. Other al Bank, University National Agency, officers are Arthur W. Erickson of Uni Chicago-Lake State Bank, Chicago- versity National Agency, vice presir g a n iz a t io n O Financial Security is the goal of all of us in today's rapidly changing picture. As financial advisors to your many clients, you are, of course, interested in protecting their best interests and your own. The fact that better than 200 b a n k e r s are included among our agents leads us to feel that the insurance program we have to offer will meet your most stringent requirements. W e offer a full line of FIRE, AUTOMOBILE, AND PLATE GLASS INSURANCE. S i A v d l y AN AGENCY COMPANY • Automobile • Workmen's Compensation • Public Liability Insurance WESTERHMUTUAL FIRE INSURANCE COMPANY ALLIED M U T U A L CASUALTY COMPANY Harold S. Evans, President Hubbell Building https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Ninth & Grand Des Moines 8, Iowa Des Moines 7, lowc Northwestern Banker, April, 1949 40 in Intimate P e r s o n a liz a Correspondent B a n k S e r v ic e B a s e d on a P o l i c y of C o o p e ra tio n —n o t C o m p e t i t i o n Under the direction of officials with years of service in this field, assur ing a knowledge of requirements and valuable assistance. P u b lic COMPANY Nati»»»] OF NEW Established 1 9 0 « M A IN M M em ber: O F F IC E : „ 37 B ro o d S t. York C l,O 'M » « " • ' led era i Depostt Assoct^on’ F tton ---- dent, and Mrs. Ruth Wittich, Mar quette Insurance Agency, secretarytreasurer. Terms are for one year. Named to the board of directors were: William F. Kunze, vice presi dent and trust officer of Marquette Bank Trust department, one year; Mr. Zander, two years, and Miss Mabel Dahl, also of Marquette, three years. A new member will be elected to the board each year. Russell L. Stotesbery, president of Marquette, was elected an honorary member. Free life insurance on all loans up to $2,500, covers any unpaid balance in case of borrower’s death. “ So . . . if you need extra money, see Mr. Hough in Room 215. He’s a very understanding man.” Positive Statement Nothing vague, confusing or preachy about this ad. It tells John Doe not what he must do, but what the Trust Company will do for him. “ Too long,” objected a bank officer to whom I showed this example of meat and red blood copy. “ People won’t take time to read ads that long.” Oh, but they will, Mr. Banker, if they are written as interesting and in formative as this one. It isn’t a wordy ad. Like all good banking copy it presents solid facts, has a selling mes sage simply told with a direct appli cation to a specific service. It gives all the details of that serv ice, even to the name of the person to see and the number of his room. It pays to be explicit . . . to state every way in which a service can be potentially valuable to a prospective customer. A new announcer on our local radio station said that he was sold on opening a checking account at our bank by reading plugs like this: “ If you’re looking for a checking ac count with no minimum balance re(Turn to page 46, please) DON'T W ASTE SPACE (Continued from page 19) I quote one of its ads which I consider an outstanding example of worthwhile advertising: “Don’t Wonder If W e’ll O.K. A Loan to you. Come in and ask us about it! “ Have you a sudden or special need for ready money? A flock of bills to pay . . . eyes on a new car . . . an improvement or appliance for your home? “We have several types of loans to meet your need. For instance, we make personal loans from $100 to $3,500 on your signature alone. No red tape, collateral or embarrassment. You repay in convenient installments. W e act as Chicago “ host’" for corre spondent banks everywhere, of every size. Meeting the requirements of these banks, and their customers, is an Ameri can National tradition. If you or your depositors have inter ests in Chicago, our experience and location can he of help to you. In every instance, we offer prompt, experienced, interested cooperation that many banks have found of unusual value. Your inquiries are invited regarding any phase of this service. fo r y o u N o r t h w e s t e r n B a n k e r , A p r i l , 7949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis AMERICAN NATIONAL BANK AND T R U S T COMPANY OF CHI CAGO M EM BER FEDERAL D EP O SIT IN SU R AN C E C OR PO RATIO N LA S A L L E AT W A S H I N G T O N , CHICAGO 90 41 M innesota NEW S M. O. GRANGAARD President Minneapolis Resigns at Detroit Lakes John Pearson, assistant cashier at the First National Bank, Detroit Lakes, Minnesota, will leave the bank May 15th to launch his own business. He will be succeeded at the bank by Carl Lehne, for years cashier of the First State Bank of Audubon. Mr. Lehne joined the staff at the bank last month. Mr. Pearson will open an office above the bank and in the near future will serve as a special representative of the Northwestern National Life Insurance Company of Minneapolis. He will also continue his income tax work. Mr. Pearson will continue to serve as director of the First National Bank. He has been associated with the First National Bank for 10 years and was with the Northwestern Bank in Minneapolis for two years. Purchase Grashuis Interests J. P. Berghuis, John B. Stager and John L. Kroeger have purchased the interests of the late William D. Gras huis in the Citizens State Bank of Clara City, Minnesota. Mr. Grashuis had served as president of the bank until his death a short time ago. Mr. Berghuis, a native of that com munity and a prominent farmer and business man, is the new president of the Citizens State Bank. Mr. Kroeger is the new vice president and Mr. Stager will remain as cashier. John Caspers was re-elected assistant cash ier by the new officers. Bank Debits Down Bank debits in the Ninth Federal Reserve District in February were 5 per cent less than for the same period a year ago, the Federal Reserve Bank of Minneapolis reported last month. Debits for 133 cities with comparable figures for both years were $2,261,302,000, compared to debits of $2,382,150,000 last year. Minnesota’s debits were $1,591,432,000, off 8 per cent from last year. South Dakota debits were down 1 per cent; western Wisconsin debits down 5 per cent. Debits in Montana, northern Michi gan and North Dakota all showed a 4 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $100 par value, and a stock dividend of one-fifth share was declared. The $10,000 increase in paid-up capital was transferred from the undivided profit account, Mr. Talen said. Ninth District Conference ROBERT E. PyE Secretary Minneapolis per cent gain for the month over last year. Minneapolis showed a 9 per cent drop in February debits compared to last year, while St. Paul dropped 7 per cent. Clarence Nystrom Clarence Nystrom, 43, former Eveleth, Minnesota, banker, died of a heart attack last month in Maryville, Missouri, where he had been cashier of the Nodaway Valley Bank for two years. Mr. Nystrom was reared in Eveleth, attended high school and junior col lege there, then was graduated from the University of Minnesota. He taught school in Eveleth, St. Louis county schools, and Duluth and had worked in the Miners National Bank in Eveleth. Pius D. Beaulieu Funeral services were held last month for Pius D. Beaulieu, 65, promi nent southern Minnesota banker for 30 years. Mr. Beaulieu was born in Waterloo, Towa, in 1883. He moved to Austin in 1909 as cashier of the Austin Na tional Bank serving in that capacity until 1926, when he took the position of cashier and vice president at the National Citizens Bank at Mankato. He returne to Austin in 1932 to assume the presidency of the Austin State Bank, holding that title until last January 1st, when he became board chairman. Mr. Beaulieu was a prominent civic leader, and a leader in charitable works and bond drives. He is survived by his wife, and sons, Richard and Robert, of St. Paul. Increase Capital at Eyota The Farmers State Bank of Eyota, Minnesota, has increased its capital account from $20,000 to $30,000, it was announced recently by Clare Talen, president. The increase was voted by the stock holders at the annual meeting and subsequently approved by the Minne sota state banking commission. All outstanding shares of $80 par value were called in and reissued at Secretary of the Treasury John W. Snyder will be the headline speaker at the Federal Reserve Bank’s annual conference of Ninth District bankers in Minneapolis, April 23rd, J. N. Pey ton, president of the bank, announced. More than 1,000 bank executives from six Northwest states are expected to gather at the Hotel Nicollet to hear Secretary Snyder, Dr. Emerson P. Schmidt, director of economic research for the United States Chamber of Com merce, and George Grim, Minneapolis Tribune columnist and WCCO news commentator. Other speakers will in clude Mr. Peyton and two members of the bank’s staff, Dr. J. Marvin Peter son, director of research, and Franklin L. Parsons, associate director of re search and agricultural economist. Also on the program is John Ford, news commentator for Station WTCN, who will act as moderator of a quiz session for which questions will be furnished by the visiting bankers and answers will be given by members of the bank’s staff. Every bank in the Ninth Federal Reserve District — Minnesota, Mon tana, South Dakota, North Dakota, northern and western Wisconsin and upper Michigan—has been invited to send a representative to the one-day conference, ninth such meeting since 1938. The business program will be pre ceded by registration and luncheon and followed by a reception and din ner. In the evening bankers will be guests at the Ice Follies of 1949. New Cashier at Wabasha At the annual stockholders’ meeting of the First State Bank of Wabasha, Minnesota, all directors were re elected. E. G. Koopman was elected cashier to replace William Witte, who has resigned. Other officers and employes elected are as follows: A. J. Doffing, presi dent; G. B. Hirschy, vice president; L. L. Meyer and W. B. Webb, Jr., as sistant cashiers. Becomes Cashier Donald C. Bailey, formerly of Min neapolis, began duties as assistant cashier at the Windom State Bank, Windom, Minnesota, last month. He was previously with the Minne haha National Bank in Minneapolis. N o rth w e ste rn Banker, A p ril, 1949 42 >- A each. Mr. Thomson told the stock holders that confidence is the key to the general business outlook. HE Minnesota Bankers Associa tion, headed by M. O. Grangaard T of the First National Bank of Minne apolis, has published a brochure, “ Min nesota Spans a Century,” as its con tribution to the state’s Territorial Cen tennial observance this year. Copies of the booklet were to be dis tributed free of charge at more than 300 Minnesota banks to depositors, members of civic and service clubs and school children. The publishing venture was under taken with the co-operation of the Minnesota Historical Society’s centen nial office. Marian Eileen Stotesbery, daughter of Mr. and Mrs. Russell L. Stotesbery of Minneapolis, was married to Ver non W. Skallerud of Minneapolis re cently in the first wedding performed in the new Mount Olivet Lutheran Church of Minneapolis. Miss Stotesberv’s father is president of the Mar quette National Bank of Minneapolis. Bussell J. Hopley of Omaha, Ne braska, president of the Northwestern Bell Telephone Co., was elected a di rector of the Northwest Bancorporation at the annual meeting of stock holders in Minneapolis, according to an announcement by J. Cameron Thomson, president. Mr. Hopley is a director of the United States National Bank of Omoha. His election increased Banco’s board of directors to 23. All other directors were re-elected. They are James F. Bell, Fred Bohen, Harry A. Bullis, Business in the Ninth Federal Re serve held its own in February, ac cording to the Minneapolis Federal Reserve Bank’s report last month on bank debits for the district. Total debits for 133 cities in the district were $2,261,302,000, against $2,382,150,000 in February, 1948, a decline of 5 per cent. However, January debits for the cities were off 11 per cent compared with January, 1948. For the two month period, debits of the 133 cities were $5,003,019,000 this year against $5,459,085,000 in 1948, a decrease of 8 per cent. N ew R U S S E L L J. H O P L E Y D irector, N orthw est B an corporation Robert Congdon, Edward B. Cosgrove, John Crosby, Thomas L. Daniels, G. Nelson Dayton, John B. Faegre, J. Morrell Foster, Frank T. Heffelfinger, Clarence E. Hill, Ward Lucas, Edgar M. Morsman, Jr., John S. Pillsbury, Joseph F. Ringhimi, Wilfrid E. Rum ble, Augustus L. Searle, Walter G. Seeger, Harold W. Sweatt, Valentine Wurtele and Mr. Thomson. The stockholders also voted to change the shares of stock of the cor poration from shares without par value to shares of the par value of $10 SPECIAL OFFER Accident Insurance, $5000 Principal Sum for only $2.00 Paid Up in Full to the Middle of next September. MINNESOTA COMMERCIAL MEN'S ASSOCIATION 2550 Pillsbury Ave. So. N o r t h w e s t e r n B a n k e r , A p r i l , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Minneapolis 4, Minnesota The Midland National Bank of Min neapolis will celebrate its 40th anni versary May 17th, according to a recent announcement by Arnulf Ueland, president. The bank has completed the first step of a remodeling program started in 1947. Expenditures for new equip ment and remodeling thus far total $200,000, Mr. Ueland said. These in clude a 30 per cent increase in the ex ecutive officers’ space on the main floor, a new transit department, lounge and dining room on the second floor and a “penthouse” on the roof for air conditioning equipment. Midland, the third largest bank in Minneapolis, originally was chartered under the name of Scandinavian American National Bank and opened for business May 17, 1909. It con solidated with the National City Bank in 1917, the name was changed to Midland National and the bank moved to its present site. Deposits have in creased from $20,309 at the time of the bank’s founding to $57,558,755 as of last December 31st. The First Hennepin State Bank of Minneapolis will be moved about August 1st to larger ground floor quar ters at Third street and Hennepin Avenue, Minneapolis, according to a recent announcement by Victor F. Rotering, president. The bank now is i 4 i < t 43 Minnesota News located at Hennepin and Washington avenues. Organized in 1929, First Hennepin is affiliated with the First National Bank of Minneapolis. It has deposits of about $4,000,000. Officers in addition to Mr. Rotering are G. E. Rydel], vice president; Ralph V. Hagen, cashier, and Donald W. McGregor and J. Homer Thompson, assistant cashiers. nouncement by Joseph F. Ringland, president, following a meeting of di rectors. Mr. Stennes began his banking career with the Bankers Trust Co. of New York and came to Minnesota with the state tax commission in 1932. He joined Northwestern’s trust depart ment in 1943 and has been trust officer since January, 1946. Serge Chermayeff, famed designer, was brought to Minneapolis recently under sponsorship of the Home Insti tute Club of the Northwestern Na tional Bank of Minneapolis. Mr. Chermayeff, wrho is president and di rector of the Institute of Design, Chi cago, addressed a public meeting spon sored by the club on the topic, “Are Our Houses Fit to Live In?” Fenton W. Blomquist, president of the Northwestern State Bank of St. Paul, died of a heart attack recently at the wheel of his automobile. Mr. Blomquist, who was 58 years old, had been president of the bank for many years. He started there as cashier in 1916. Succeeding him as president was Walter V. Doric, who had been vice president. Mr. Dorle started his career as a messenger. Arthur H. Quay, a vice president of the First National Bank of Minne apolis, talked on “Financial Require ments for Bank Credit” at a recent meeting of the Twin Cities chapter, National Association of Cost Account ants, in Minneapolis. Chester D. Seftenberg, vice presi dent and trust officer of the First and American National Bank of Duluth, spoke recently at the 27th annual con vention of the Minnesota Federation of Engineering Societies in Minne apolis. Joseph E. Stennes, trust officer, was promoted recently to assistant vice president of the trust department of the Northwestern National Bank of Minneapolis, according to an an C arazÈ ünË rai M ODERN M A CH IN ERY Model " U L . 7 8 Will Step-Up Profits for You! D A V ID A N D G O L IA T H — In the trick shot above, Jim B arickm an (left) sticks out his hand to pre vent G eorge M ikan from sinking a basket. This picture is a “ trick shot” for two reasons. The first is that Mr. Barickman is an employe of the Northwestern National Bank, Minneapolis, and contents himself with hustling up and down the floor with the bank team, which plays preliminary games to the Minne apolis Lakers professional basket ball games. But Mr. Mikan, who approaches the 7-foot mark flatfooted, is the famous Mikan of AllAmerican fame and who now plays center on the Lakers. The second reason is that this is the well-known “ Mikan trick shot,” a pivot toss that has cost many an opponent two points. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The 3 to 4 plow Model U provides economical power for drawbar, power lift, belt pulley and, power take-off applications. Variable speed governor, five forward speeds, swinging-type drawbar, and adjustable rear tread economi cally adapt the U for any farm task. Drop-forged steel crankshaft and connect ing rods operate on precision-type bearings. Gears, shafts, and bearings operate in oil bal h; extra large capacity oiling system provides positive lubrication and seals out dirt. Model U ’s special steering mechanism offers easy handling, quick turning and lining-up at row ends. Hand operated over-center clutch provides easier, safer implement hitching and belt work. M M Quick-On—Quick-Off Tools are easily and simply attached to the M M Model U. O P T I O N A L U N I - M A T I C P O W E R — New hydraulic control mechanism raises or lowers farm implements automatically, permits pre selection or changing tool depth or height of cut. Tested safety features for both operator and machines free operator’s hands and feet for greater safety. Operation is controlled by easy-to-reach, simple-to-use, finger-tip lever. Uni-M atic Power reduces fatigue, labor, and drudgery. See Your Neighborly Neighborhood Universal U and MM Wheatland Disc Plow with Seeder Cut Soil Preparation Costs Standard U and MM Drill Plant Uniform Seed Bed Faster MM Deal er For Complete Facts. U NI-M ATIC POWER G e ts M o r e W ork Done E v e r y H o ur Minneapolis-M oline M I N N E A P O L I S 1, M I N N E S O T A N o rth w e ste rn B anker, A p ril, 1949 44 Minnesota News Mr. Seftenberg is a lieutenant colonel and commanding officer of the 241st composite squadron, air reserve, and vice president for air affairs of the Minnesota department, Reserve Officers Association of America. Harvey R. Weesner of Minneapolis, a director of the First National Bank of Minneapolis, died recently after an illness of two weeks. He was 82 years of age. In addition to his banking duties, he was chairman of the hoard of directors of the Wabash Screen Door Company of Minneapolis. Malcolm B. McDonald of the First National Bank of Minneapolis spoke 3L B A N K CARL Three Twin Cities bankers were among the 100 living great Minne sotans chosen recently in a statewide poll conducted by the Minnesota Junior Chamber of Commerce in con nection with the state’s Territorial Centennial celebration. They are Otto Bremer, chairman of the board of directors of the American National Bank of St. Paul; C. T. Jaffray, a director and past chairman of the board of the First Bank Stock at tie L. F R E D R IC K S E N President YARDS The “Yards” Bank M A R K A. W I L S O N V ic e President Make sure of prompt returns on your livestock items in the Sioux City market by sending them direct to the Live Stock National Bank— the only bank in the Sioux City stock yards. C L I F F O R D L. A D A M S V ic e President W I L L I A M C. S C H E N K A sst. V . Pres, and Cashier J O H N S. H A V E R A sst. Cashier Our location, live stock experience and complete correspondent facili ties, insure prompt service at this end of the line. W e invite your account here in Sioux City. J A M E S L. S M IT H A sst. Cashier and A ud itor K I N L E Y W . S M IT H A sst. Cashier STAN LEY W . EVANS A sst. Cashier https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis recently when the new second floor addition to the North Side branch of the YMCA was dedicated in Minne apolis. Mr. McDonald is president of the Minneapolis YMCA. 4 SIOUX CITY MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION ■I ' ’ ■ * Corporation, and R. C. Lilly, chairman of the board of the First National Bank of St. Paul. X George J. McKasy and Randall 1. Stockwell have been elected vice presi dents of the Liberty State Bank, St. Paul. Both men previously were as sistant cashiers in that bank and have been employed there for several years. A William G. Kirchner, vice president and cashier of the Richfield State Bank and Trust Company, and one of the organizers of the Minneapolis subur ban bank, resigned last month to en gage in other business. He was suc ceeded by John S. Caldwell, formerly assistant cashier. The name of the bank also has been changed through amendment to the bank’s articles of incorporation to read, “ Richfield State Bank.” Legal liability limit of the bank was raised to $4,000,000. Winners of a recent personality con test among girl employes of all 10 Northwestern Banks of Minneapolis were Miss Claire Waterman, North western National Bank, and Miss Helen Lyngen, Fifth Northwestern National Bank. The two girls were presented with sterling silver gift bracelets and were feted at the cele bration held during the intermission of a Minneapolis hockey game. Sponsored by the EON Club (Em ployes of Northwestern Banks of Min neapolis), the contest was judged on personality traits, such as ability to get along with fellow workers, ability to treat customers friendly and en thusiastically, and ability to do re spective jobs well. Á Form 25-Year Club Veteran members of the City Na tional Bank of Duluth, Minnesota, were honored at ceremonies formally estabishing the institution’s new Twentyfive Year Club. The dinner will become an annual event, open only to staff members with 25 or more years of service. Eleven qualified for membership at the organizational meeting. Their length of service ranges from 28 to 46 years. Herman C. Matzke, president, heads the group with a 46-year record, followed by Robert H. Magie, cashier, 40 years; George R. Macaskill, assistant cashier, 40; Thom as Johnson, trust officer, 37; Ray O. Jacobson, 35; Anne K. Gilleland, 35; Edwin B. Bredeson, 31; Caroline Bar tholdi, 30; Mario Summers, 30; Ebba Berg, 20, and Gertrude L. Haley, 28. William A. Gray, vice president, spoke and presented inscribed wrist watches to the guests of honor. i 45 South D akota NEW S J. M. LLOYD President Yankton Move Into New Bank CARL E. BAHMEIER, JR. Secretary Huron Tiro-Huy School Hunkers Dates Are April 6th, 7th at Brookings TWO-DAY Bankers Short Course and School will be conducted April 6th and 7th at the South Dakota State College in Brookings under the sponsorship of the agricultural com mittee of the South Dakota Bankeis Association. The meetings will be devoted to var ious phases of farming and live stock operations with members of the Col lege agricultural school staff handling individual subjects. The program is as follows: A April 6, 10:00 A. M. Carl J. Odegard, Presiding Ball Room, Pugsley Union Welcome—Fred H. Leinbach, presi dent South Dakota State College. Response—J. M. Lloyd, president, South Dakota Bankers Association. Banker’s Role in Building a Pros perous Agriculture—Stanley Morril, Agricultural Agent, National Bank of South Dakota. An Analysis of the Various Proposed National Farm Programs—A. M. Eberle, Dean of Agriculture, South Dakota State College. April (j, 1:30 P. M. E. Schouweiler, Presiding Ball Room, Pugsley Union Farm Management Session Recent Trends in Weed Control (airplane-ground spraying)—Lyle Derscheid, Assistant Professor Agronomy Department. Recent Trends in Grasshopper Con trol—E. C. Severin, Head of Ento mology-Zoology Department. Managing the Farm Successfully in a Falling Market—Russell Olson, As sistant Professor Agricultural Eco nomics. Farm Buildings—Tools or Tomb stones (recent trends in farm build ings and planning of farmsteads)—H. H. DeLong, Head Agricultural Engi neering Department. Your home is worth more i f ......... ? (Demonstration on how to improve home grounds)—Leonard Yager, As sistant Horticulturist. Tour: Clinic—will inspect an actual farm. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis permanent school fund by $23,541 last month, officials announced at Pierre. Whenever dividends in connection with liquidation of a bank remain un claimed for 10 years the money goes to the school fund. April 6, 6:30 P. M. Max Gutz, Presiding Livestock Judging Pavilion Barbecue. What’s Ahead for Agriculture— Franklin L. Parsons, Agricultural Economist, Federal Reserve Bank. Stock Judging Contest—John Liebel and Staff, Animal Husbandry Depart ment. April 7, 9:00 A. M. E. B. Dwight, Presiding Ball Room, Pugsley Union Soil Conservation Session Effect of Geologic Pattern on the Major Soils of South Dakota (illus trated)—Fred Westen, A s s i s t a n t Agronomist. Can Other Tillage Methods Compete With the Plow—Ralph Cline, Soil Con servation Service. Legumes and Grasses in Maintain ing and Improving Soil Fertility L. F. Puhr, Professor, Agronomy Depart ment. Intensive Farming With Irrigation (illustrated)—S. A. McCrory, Head Horticulture Department. Stabilizing Crops and Livestock Pro duction Through Grasses and Leg umes (illustrated)—W. W. Worzella, Head Agronomy Department. April 7, 1:30 P. M. L. A. Pier, Presiding Ball Room, Pugsley Union Livestock Session Twenty Full Sisters from Each of Our Best Cows Each Year (illustrated) —Arthur Dracy, Assistant Professor Dairy Department. Feeding and Breeding Livestock for Profit—Leslie Johnson, Head Animal Husbandry Department. More Milk Cows in South Dakota— Philip Kelly, Head Dairy Department. Tours—Beef feeding experiments; hog breeding experiments; tree plant ing demonstration; the bull stud grows; a new look at calf feeding; new green houses. Transfer Unclaimed Dividends Unclaimed dividends from 60 closed banks in South Dakota enlarged the The Bank of Kimball, South Dakota, opened up for business in its new quarters recently. A new modernistic front has re placed the old one and the interior is completely new and streamlined for efficient handling of the bank’s affairs. There are private conference and di rectors’ rooms, plenty of storage and working space, in addition to a large lobby, several times greater than the crowded quarters of the old bank building owned by the city. Remodel Springfield Bank Remodeling of the interior of the Springfield State Bank, Springfield, South Dakota, was completed recently. All fixtures were remodeled or re placed. Grillwork surrounding tellers’ cages was discarded and low, modern ized glass panels were installed. An extra tellers’ window was added to increase customer facilities in the bank. S io u x F a lls N e w s IOUX FALLS banks in 1948 re S ported total check volume of $881,237,000, an all-time high total, 14.5 per cent in excess of 1947 and 285 per cent more than the 1940 figure. For Sioux Falls, December, 1948, was the largest December in history with check payments amounting to $77,791,000 or 1.6 per cent ahead of December, 1947. C. A. Christopherson, chairman of the board of directors of the Union Savings Bank and former South Da kota congressman, accepted the gen eral chairmanship of the $500,000 building campaign for the Crippled Children’s Hospital and School in Sioux Falls. Tom S. Harkison, president of the National Bank of South Dakota and potentate of El Riad Shrine, presided at a large gathering addressed by Im perial Potentate Galloway Calhoun of Tyler, Texas. Dr. S. A. Donahoe, a director of the National Bank of South Dakota, was named to a local Ducks Unlimited committee. Local b a n k c l e a r i n g s which amounted to $22,050,050 in February, N o rth w e ste rn B anker, A p ril, 19 49 46 Sou th D akota N ew s y; 1948, dropped to $20,513,958 of this year. The decrease was attributable mainly to a $727,739 drop in valuation of livestock received by the Sioux Falls stockyards. T. N. Hayter, vice president of the First National Bank and Trust Com pany, with Mrs. Hayter, spent a threeweek vacation in Miami, Florida. W. C. Duffy, president of the Union Savings Bank, accompanied by Mrs. Duffy, spent two months this winter in Florida. They made their headquar ters at Coral Gables. H. O. Engen, vice president of that bank, attended a convention of the Independent Bank ers’ Association in Biloxi, Mississippi, while on vacation with Mrs. Engen. DON'T W ASTE SPACE (Continued from page 40) quirements and no service charges, one of o u r ....... checking accounts is the one for you. Only one charge . . . $1.00 for a book of checks to use as needed . . . no time limit on them. Today is the day to buy your . . . . check book.” Writing Copy The writing of advertising copy for a bank requires a lot of preparatory thinking and a lot of imagination. When you sit down to write your STATEM EN T OF CONDITION NORTHWEST SECURITY NATIONAL BANK of Sioux Falls, South Dakota South Dakota’ s Leading Rank December 31, 1943 R E S O U R C E S Cash on Hand, in Federal Reserve Bank, and Due from Banks and Bankers..............................$11,411,395.10 U. S. Government Obligations................................. 19,616,261.79 State and Municipal Bonds...................................... 798,122.40 Other Bonds and Securities..................................... 1,269,679.08 Includes B anking Houses at Sioux Falls, B rookings, Chamberlain, Dell Rapids, Gregory, Huron and Madison, all clear o f encum brance. Interest Earned but Not Collected.................................................... Customers’ Liability on Letters of Credit........................................ 164,351.65 36,000.00 T O T A L ........................................................................................... $45,773,931.30 L I A B I L I T I E S Capital Stock— Common ..........................................$ 500,000.00 Surplus ....................................................................... 1,000,000.00 Undivided Profits and General Reserves. . . . . . . . . 392,195.52 $ 1,892,195.52 134,254.54 68,590A6 43,642,890.88 Letters of Credit................................................................................... 36,000.00 T O T A L ........................................................................................... $45,773,931.30 BRANCHES AT BROOKINGS, CHAMBERLAIN, DELL RAPIDS, GREGORY, HURON, MADISON A ffiliated with N o rth w est B ancorporation M em b er F ed era l D e p o sit Insu rance C orporation N o r t h w e s t e r n B a n k e r , A p r i l , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis k V- T > Insurance Plan $33,095,458.37 Stock in Federal Reserve Bank in Minneapolis............................. 45,000.00 Overdrafts ............................................................................................ 2,707.90 Loans and Discounts............................................................................. 11,008,600.30 Commodity Credit Corp., Grain L o a n s .......................................... 1,189,313.08 Banking Houses ............................................................. 232,500.00 Reserve for Interest, Taxes, and Other Expenses......................... Interest Collected but Not Earned.................................................... Deposits: Time .....................................................................$ 7,312,130.84 Demand ................................................................ 35,777,759.98 U. S. War Loan.................................................. 553,000.06 ads, it isn’t the bank, its competitors, or your own advancement that should be uppermost in your thoughts and im agination, but the public you hope to serve. Get John Q. Public in the cen ter of the picture . . . then write as though you were talking across the table to a group of business associ ates. Be informal, conversational; speak the language of the people, but don’t talk down to them. Try to get some of that attention-attracting, in terest-holding, easy-to-read style of to day’s colorful nonfiction into your ads. Paint a word picture of the services a good bank renders the individual and the community. Don’t keep John Doe in the dark about your bank’s practices and policies. Tell him the requirements he’ll have to meet to open and maintain a checking account, to borrow money. Explain why the bank has to charge for certain services, but keep always before his eyes in bold, black type the benefits he’ll receive from the use of all your banking facilities. To educate the public to use the service of a sound, progressive bank is to do something definitely construc tive for both individual and commu nity. Let’s do a good job of it in ad vertising copy that has something sig nificant to say . . . and says it with sound, sincere simplicity.—The End. More than a year ago the Manufac turers Trust Company of New York arranged a correspondent bank group life insurance plan for its correspond ent banks through the Metropolitan Life Insurance Company and the Equi table Life Assurance Society of New York. The bank recently as trustee ren dered a report on the first fiscal year of the plan. At the end of the first year there were 213 participating banks with 1,898 of their employes insured for more than $5,500,000. W. Wottrich, vice president, in his report says, “We are delighted with the en thusiasm with which our correspond ent banks and their employes have taken advantage of this insurance plan.” -A 4 X 205th Dividend At a recent meeting of the executive committee of the board of directors of The Northern Trust Company, Chi cago, the regular quarterly dividend of 4% per cent ($4.50) was declared payable April 1, 1949, to stockholders of record at the close of business March 15th, the transfer books being closed at two o’clock p. m. March 15, 1949, and opened at nine o’clock a. m. March 16, 1949. f 47 another, wherever the records to be copied are located. There are no de lays or interruptions in normal routine caused by sending records to a special department or to an outside source for copying. They can be copied and re leased for active use or returned to the files in a few seconds. The pos sibility of loss is reduced, confidential information is protected. Tw o Banks Increase Capital Two North Dakota state banks were given permission to increase their common stock recently, J. A. Graham, state examiner, said. He announced the state banking board had approved an increase in common stock from $25,000 to $35,000 for the First Security Bank of Under wood and from $25,000 to $50,000 for the Scandia-American Bank of Stan ley. Resigns From Fargo Bank E. Maine Shafer, assistant cashier of the First National Bank and Trust Company, Fargo, North Dakota, since 1946, resigned last month to become sales manager for the Brady Motor Company in Fargo. Legislative News A general bulletin from the office of C. C. Wattam, secretary of the North Dakota Bankers Association, gives a review of legislative news from the state legislature, including informa tion on the “par clearance bill” passed. The bulletin says, “ H. B. 97, the socalled “ anti-par clearance bill,” which passed the House 81 to 30 and the Sen ate 39 to 9, was signed by the gover nor and, carrying the emergency clause, went into effect on the day it was signed, February 26th. Please note that all checks payable to the state of North Dakota or any political subdivision or any agency of either or both must be paid at par.” The bulletin also brings attention to several other bills pertinent to bank ing. Among them are the following: S. B. 117 permits destruction of bank records, excepting only ledger sheets showing unpaid balances, after six years, and provides that anyone hav ing a claim against a bank must make a demand in writing for a settlement and adjustment of it within the sixyear period, again excepting claims for unpaid balances, or action thereon is barred. S. B. 125 authorizes deferred post ing. This is the act recommended by the American Bankers Association. A study of the provisions of the bill will explain the same fully. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis H. B. 114 is the “book marking” statute, which provides for prior lien on accounts receivable. H. B. 167 validates transactions of banks taking place on a legal holiday. H. B. 175 extends time for filing federal estate tax returns to fifteen months to correspond with federal law, and also provides that, where bank pays proceeds of joint account to sur vivor, it shall not be liable for fine, tax and penalty unless it can be shown that it was knowingly done in violation of law. The law prior to this time pro vided for such fine and penalty unless bank making payment withheld suffi cient amount to pay estate tax owing by deceased party to the joint account. No more space is required for the Record Dexigraph than for an ordi nary desk. It plugs into any standard 110 volt electrical outlet. Special wir ing or plumbing of any kind is not required at point-of-use. Any record up to 9% x 14 inches can Award Soil Contest Prizes President Arne A. Gregor met with the Soil Conservation Administrators at Bismarck, North Dakota, recently where the Greater North Dakota Asso ciation awarded the winners in last year’s soil conservation contest the $1,000 in cash prizes, and the North Dakota Bankers Association presented plaques. Both organizations also joined in presenting achievement certificates. The Soil Conservation Achievement Program is sponsored by the Greater North Dakota Association, cooperating with the North Dakota Bankers Asso ciation, the North Dakota Press Asso ciation, the North Dakota Soil Con servation Supervisors Association, the Extension Department of NDAC, and the United States Soil Conservation Service. The contest is divided into five districts. be copied with the Record Dexigraph at same size or at any of five reduc tions down to 50 per cent of original size. Larger records up to 14 x 17 inches can be copied at various smaller sizes for easier handling and filing. Or, any number of smaller documents not exceeding those total areas can be copied simultaneously. Improved Photocopy Camera F.P.R.A. Convention Greater copying versatility, greater ease of operation, and complete mobil ity to permit point-of-use operation are among the advantages offered by an improved high-speed photocopy camera announced by the Photo Rec ords Division of Remington Rand, 315 Fourth Avenue, New York, New York. Known as the Record Dexigraph, this camera is specifically designed for copying all kinds of business, govern ment and institutional records. The Record Dexigraph can be rolled on casters from one department to With the Remington Rand Rec ord Dexigraph shown above, the average operator can make 300 ex posures or 150 fully processed photo copies in an hour. Allen Crawford, president, Financial Public Relations Association, and vice president, Bankers-Equitable T r u s t Company, D e t r o i t , Michigan, an nounces that the association’s 34th An nual Convention will be held in the Edgewater Beach Hotel, Chicago, Illi nois, October 19th, 20th, 21st and 22nd of this year. During the war the annual exhibit of financial advertising was discon tinued. This year this exhibit will be renewed as a major feature of the con vention. N o rth w e ste rn B anker, A p ril, 1949 48 For 93 Years SO U N D Com plete BA N KIN G SE R V IC E C o rresp o n d en t MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION P ill N o r t h w e s t e r n B a n k e r , A p r i l , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis F a c ilities 49 N would be of definite value to all farm ing communities and that bankers would be doing their communities a service to become engaged in such activity. e b r a s k a NEW S CARL G. SWANSON Secretary Omaha J. R. KENNER President Hebron dinner given by Mr. and Mrs. J. R. Kinder of Lincoln. Mr. Kinder is pres ident of The Tilden Bank. Guests were employes of the bank and members of the board of directors and their wives. Mr. and Mrs. Ryan were presented a gift, while Mr. Ryan received many messages and bouquets of flowers from banker friends. New Cashier at Emmet William P, Dailey, veteran cashier of the Emmet State Bank, Emmet, Nebraska, disposed of his interest in the bank and resigned as cashier last month. Mr. Dailey’s interests in the banking institution was purchased by H. F. Mullen and John Conard of Emmet, and Mr. Mullen has been elected cash ier to succeed Mr. Dailey. He has already assumed his duties. Mr. Dailey, who has been with the bank in Emmet for some 40 years, has been in ill health recently and resigned so that he may enjoy some leisure time in a warmer climate. H. J. Birmingham of O’Neill is presi dent of the Emmet bank. He also heads the First National Bank of Atkinson. Mr. Conard, Emmet post master and business man for many years, has been elected vice president of the Emmet bank. Mr. Mullen, the new cashier, has been employed in the bank for some time. Conduct Farm Programs Bank Debits Down Banks of five Nebraska cities which are included in the Tenth Federal Re serve District all showed decreases in bank debits during January of 1949 in a comparison with debits during the same month of 1948. Figures released last month by the Federal Reserve District showed Lin coln having the smallest decrease, one of 3 per cent. Fremont was next with a decrease of 13 per cent. Other drops were Omaha, 17 per cent; Grand Is land, 18 per cent, and Hastings, 19 per cent. Tilden Banker Honored J. J. Ryan completed 40 years of continuous service with The Tilden Bank, Tilden, Nebraska, last month. In honor of the occasion Mr. Ryan, vice president, was entertained at a A series of eight programs for the information of farmers in the vicinity of Cozad, Nebraska, was completed the first week in April when a discussion on “Terracing and Contour Farming” was conducted in the Cozad city hall. The program was under the sponsor ship of the Cozad Chamber of Com merce, with W. E. Young, vice presi dent of the Cozad State Bank, as chair man of the project. Mr. Young reported last month that the first meetings were well attended, with the exception of one, and said between 400 and 500 were expected for an evening meeting on “ The Lower Platte River Basin Plan and How It Might Affect You,” this meeting being conducted by the area engineer for the Bureau of Reclamation. Other subjects in the series covered “ Soil Fertility and Commercial Fertil izer” ; “Work of Soil Conservation Service in Dawson County” ; a film en titled “Thirsty Acres,” shown by Un ion Pacific Railroad and concerning irrigation methods; a tour of the Un ion Pacific’s Agricultural Improvement Display, which was set up in a U. P. car and contained information on in secticides, weed killers, general farm practices, colored films and problems of livestock feeders; “Weed Controls,” and “ Fire Control and Prevention” with films and display of new equip ment. Mr. Young feels that this program Bid you know that adoption of our Cash Letter insurance enables you to' dispense with detailed Cash Letter transcripts and keep only a duplicate adding machine tape? Ask us for details. F IR S T N A T IO N A L . B A N K https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis B U IL D IN G Add Two Improvements • C H IC A G O The National Bank of Commerce in Lincoln, Nebraska, has completed two improvements in the interior of the bank. New “ Slim Line” lights have been installed in the ceiling to give greatly increased daylight lighting and eliminate glare. These new fixtures replace old ones that hung from the ceiling and had proved insufficient for proper working conditions. President Byron Dunn reports a great deal of interest has been evi denced in the new lighting arrange ment by visitors from other cities who have had pictures taken of them to take back to their local electric deal ers for display. The second improvement in the bank has added more space and two savings windows. The bank took over a small shop at the rear when the lease expired and installed two savings windows and a desk for cashing E, F and G bonds. Wallace Robertson Wallace Robertson, 79, prominent banker and long-time resident of Bea trice, Nebraska, died last month. He had been in failing health several years. He was chairman of the board of the Beatrice National Bank at the time of his death. Born June 30, 1869, at Cambridge, New York, Mr. Robertson moved with his family to Beatrice in 1878. He la ter took a job as clerk with the Bea trice National Bank and became cash ier in 1906. In 1916 he succeeded D. W. Cook, Sr., as president. He held the post for 30 years until he was named chairman of the board. Legislative Action The Nebraska legislature last month killed a bill which would have per mitted banks to close on Saturday and other days, in addition to Sundays and public holidays. The same committee indefinitely postponed a bill that would have al lowed banks to set up branch offices to receive deposits and cash checks in towns that have no banks. Scarborough & Company Insurance Counselors 3, I L L I N O I S STATE to Banks 2 4325 N o rth w e ste rn B anker, A p ril, 1949 50 Nebraska News Q jw sL id u }jcrisi Addressjjjjraph S o v in q A . Addressing by hand or typewriter method costs 10 times as much as the m odern Addressograph method. A d d r e s s o g r a p h TRADEM ARKRSGUSPATOK m ill.F f OMAHA — DES MOINES DAVENPORT A third measure, LB 502, to allow state, municipal or civil service em ployes to purchase any form of group life, hospital, sickness or accident in surance through monthly salary de ductions likewise felt the committee’s knife. After a brief hearing the banking committee moved three bills to gen eral file. Under LB 301, introduced by Sena tor Cliff Ogden of Omaha, a procedure is set up for federal building and loan associations to convert to state-char tered organizations. Another bill introduced by Senator Ogden, LB 302, requires the depart ment of banking to issue a certificate of approval before a building and loan association can be organized. This cer tificate is to be based on the character and responsibility of the organizers, its need and probable usefulness and suc cess in the community. LB 119, increasing from 20 per cent to 50 per cent the amount banks are required to restore to surplus funds, was approved after the committee was told it was timed at correcting a dis crepancy in the present laws. Returns to St. Paul N. J. Paul has returned to the St. Paul National Bank, St. Paul, Nebras ka, after an absence of over a year. He repurchased stock he had previous- ly sold to By ran Jensen and again be comes identified with the institution that was founded by his grandfather, the late N. J. Paul. Mr. Paul will again be vice presi dent. James Olsen, former county treas urer, who has been associated in the bank the past year, will not be with the institution. Blair Bank Plays Host The Washington County Bank, Blair, Nebraska, was host last month to the 4-H leaders of the county, and their husbands or wives, at a recognition dinner. This is the second year that the bank has sponsored this event. About seventy leaders or members of their families attended. In welcoming this group, George Hedelund, vice president of the bank, said that there was no more unselfish group than the local 4-H leaders and that it was clear that many of the awards received by the 4-H members could be traced directly to the in terest displayed by the leaders in guiding them in their projects. He also noted with approval the growth of soil conservation as 4-H projects, citing this as a phase of farming with which not only the future farmer, but all who dwell in rural communities must be familiar. Several awards were presented dur ing the meeting. Manages Amherst Bank OFFICERS G. E. Porter Chairman o f the Board J. A . Greenfield P resident T. J. McCullough V ice P residen t M. E. Blanchard Cashier L. J. Kom er Assistant Cashier H. H . Broadhead, Jr. Assistant Cashier Heart of the Market Located in the heart of the live stock > Dr. R. L. Hart took over active su pervision of the First National Bank of Amherst, Nebraska, last month fol lowing the death of A. H. Czenkusch, cashier and director. Dr. Hart is presi dent and chairman of the board of the bank. y V A: business the First St. Joseph Stock Yards Bank offers you rapid transit service and up-to-date information on the live stock industry. Elect New Cashier At a meeting of the board of direc tors Raymond Grosse was named cash ier of the Commercial State Bank, Ce dar Bluffs, Nebraska. He succeeds E. H. Henderson who retired. T F. E. Neeley Franklin Earl Neeley, 58, vice presi dent and cashier of the Gering Na tional Bank, Gering, Nebraska, died last month at his home in that city. Mr. Neeley had been ill for about six months. He had been associated with the bank for nearly 37 years. B A N K S Bought and Sold Confidentially and with becoming dignity BANK EMPLOYEES PLACED 44 Years Satisfactory Service ONLY BANK IN THE YARDS” Member Federal Deposit Insurance C orporation N o r t h w e s t e r n B a n k e r , A p r i l , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis B CHARLES E. WALTERS CO. OMAHA. NEBRASKA t https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 51 e r ta in s e r v e THE ONLY BANK IN OMAHA'S GREAT UNION STOCK YARDS Member of Federal Deposit Insurance Corporation N o rth w e ste rn B anker, A p ril, 1949 52 * vice president of the United States Na tional Bank, and the late Herbert M. Bushnell, an Ak-Sar-Ben Governor. Mr. Bushnell, who was president of the United States National, died be fore the.drive got under way. Gen eral Drive Chairman is E. F. Pettis. E. STODDARD, presi dent of the Union Pacific Rail road, has been elected a member the board of directors of The Omaha National Bank. The announcement was made by Dale Clark, chairman of the board. Mr. Stoddard was born in Auburn, A RTHUR His first job in Gothenberg, Nebras ka, at a salary of $30 a month, led to another as agent at Hay land, Nebras of ka. By 1942, he had become superin tendent of the Wyoming division. During World War II he headed an Army railway branch in Iran, from 1942 to 1946. Upon his return to the Union Pacific he was named superin tendent of the Kansas division, and has climbed steadily up the ladder to the presidency of the Union Pacific Railroad, having taken over that office March 1, 1949. The appointment of T. B. Strain, president of the Continental National Bank of Lincoln, as head of the Ne braska Savings Bond Advisory Com mittee, was announced recently by the Treasury Department. He succeeds Allen T. Hupp of Oma ha, secretary of the Associated Re tailers of Omaha, who resigned. Mr. Strain has been associated with the Savings Bond program since its inception. He had served as Lancas ter County Advisory Committee chair man and as a member of the State Committee. ARTHUR E. S T O D D A R D D irector Nebraska, in 1885. His career with the Union Pacific began in 1916 as a student helper, and except for two years military service in World War I, and four years in World War II, he has been continuously with that rail road. Home from a month’s trip to Florida are Mr. and Mrs. Lawrence Blinker of Omaha. Mr. Brinker is an invest ment banker. They vacationed at Miami Beach. Second team to reach its goal in the Ak-Sar-Ben membership drive was that headed by Richard H. Mallory, Ex Congressman Howard Buffett, Omaha investment banker, is one of four persons named as beneficiaries in the will of his uncle, Frank Buffett, 75, who died last month. Howard, George, Fred W. and Alice Buffett, are be queathed quarter interests in the es tate, estimated at $100,000 Frank Buffett was a veteran Omaha grocer. Mr. and Mrs. Ray R. Ridge returned home recently after a three weeks’ vacation at the Inn at Rancho Santa Fe, California. Mr. Ridge is senior vice president of the Omaha National Bank and former president of the Omaha Chamber of Commerce. Tom McGrath has been appointed to the new business department of the Omaha National Bank. He has been an employe of the bank eight years. W. Dale Clark, chairman of the board of the Omaha National Bank, was one of the incorporators of a non profit charity organization headed by Eugene C. Eppley, Omaha hotel man. It is called Eugene C. Eppley Foun dation, Inc. Others are Mr. Eppley, Elton C. Loucks, Clarence L. Landen, finance corporation head, all of Omaha, and Fred W. Eckert, Kenilworth, Illinois. Ellsworth Moser, president of the United States National Bank of Oma ha, has been named to the Board of Governors of the Knights of AkSarBen. Mr. Moser will succeed on the board the late H. M. Bushnell, who was president of the United States Na tional at the time of his recent death. Ak-Sar-Ben King W. D. Lane was elevated to vice president of Ak-SarBen to succeed Mr. Bushnell. IN ST. JOSEPH No Other Bank Gives You M ORE* for YOUR M O N E Y Than the TOOTLE-LACY N orthw estern B a n k e r , A p r i l , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MILTON TOOTLE FRED T. BURRI PRESIDENT CASHIER > R. E. WALES VICE PRESIDENT GRAHAM G. LACY CH. OF THE BOARD r l < Nebraska News Governor E. F. Pettis, former bank er, succeeds Mr. Lane as secretarytreasurer. Ak-Sar-Ben President W . B. Millard, Jr., new president of the Omaha Na tional Bank, said that Mr. Moser’s selection as a member of the Board of Governors was based on his long rec ord of civic activities. The Douglas County Bank of Omaha has jumped 1,088 places in its standing among the largest 2,000 banks in the nation. The Douglas County Bank was 1,007th in size at the end of 1948; compared to 2,095th at the end of 1947. The bank had deposits of $8,739,819 as of December 31, 1948. Mrs. Alta Smith, 82, resident of Omaha 50 years and a former instruc tor at Brownell Hall, Omaha girls’ school, died recently. She was the mother of Mrs. Richard H. Mallory, whose husband is vice president of the United States National Bank of Oma ha; Mrs. Winnifred Ross, also of Omaha; Mrs. William E. Van Dorn, Pasadena, California; George CasselsSmith, Baltimore, Maryland, and Hugh Smith of Chicago. Burial was at Papillion, Nebraska. Emil E. Placek, president of the First National Bank of Wahoo, will speak at the sessions. The Association will push its soil conservation program, which was launched at the annual convention in Omaha last year. The will of Herbert M. Bushnell, late president of the United States Na tional Bank of Omaha, was admitted to probate in Douglas County Court at Omaha recently. Mr. Bushnell left the entire estate to his widow, Rosella Barbara Bushnell. No estimate of the estate was given. Major W. A. Sawtell, Jr., attorney, whose father is president of the Stock Yards National Bank of Omaha, was general chairman of the annual dinnerdance sponsored by the Omaha Re serve Officers’ Association in connec tion with National Security Week. The event was held at the Birchwood Club in Omaha. The annual fun night party of the Omaha Downtown Lions Club was in charge of the ladies. Mrs. John Eauritzen, wife of the club president, took over the chair from her husband, who is vice president of the First Na tional Bank of Omaha. The hilarious program was a travesty on men’s meetings. A “famous French de signer” also introduced “new fashions for men,” including fetching costumes for hunters, fishermen and the beach. E. N. Van Horne, president of the Federal Land Bank of Omaha, spoke on “ Credit to Agriculture” at a recent luncheon of the Omaha Rotary Club at the Fontanelle Hotel. The Omaha National Farm Loan • Duplicate batik deposit books • Tellers cash tickets /9 „ N e b r a/ s kSa SI»8 a9l e s b o o k INCE Lincoln 9 * t J littc a U t — Bank clearings in Omaha during February totaled $424,607,061, a 9 per cent drop from February, 1948. Bank debits were $384,735,749, a drop of 7.8 per cent from February last year. 53 Nebraska G a * ttin e * ita l ■ G la d i COLLECTION SERVICE IN LINCOLN, Spring meetings of the Nebraska Bankers Association will begin April 18th at Lincoln, according to Carl Swanson, secretary of the Association. Bankers will make a week’s train trip through the state to attend six group meetings. Other meetings will be April 19th at Hastings, April 20th at Alliance, April 21st at Broken Bow and April 22nd at Columbus and Norfolk. The April 22nd (Arbor Day) meeting at Norfolk is tra ditional. Banks are closed on that day. USE Member Federai Deposit Insurance Corporation ’ MORE personal service — ’ MORE types of service — *MORE friendliness — ’ MORE people who are interested in you. NATIONAL BANK E. H. SCHOPP ASST. VICE PRES. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis E. L. GRUME ASST. VICE PRES. MILTON TOOTLE. JR. ASST. CASHIER GILBERT TOOTLE ASST. CASHIER S T. JO S EP H , M O . A. E. LA BOUFF AUDITOR M em ber F e d e ra l D eposit Insurance Corporation N o rth w e ste rn B anker, A p ril, 1949 54 Nebraska News Association is in the best financial con dition in its history, members were told at their annual meetings in Elkhorn, near Omaha. Kenneth G. Baker, secretary-treas urer, said that a reserve program is “building up a buffer to protect stock holders from losses that might develop in the future.” He reported that the Association has paid $24,694 in dividends to its mem bers in the past four years. Otto M. Boettger of Omaha and Arthur Abraham of Valley were re elected directors for three-year terms. Franklin R. Coekerill of Springfield was elected to serve the unexpirecl term of George W. Meredith of Gretna, who paid his loan in full during 1948 and became ineligible to serve on the board. 75th Anniversary The Schuyler State Bank of Schuy ler, Nebraska, was 75 years old last month. The bank opened for business on March 2, 1874, under the name of Sumner, Smith & Company. Organiz ers were Charles E. Sumner, William H. Sumner, Olney J. Smith, L. C. Smith and Judge J. W. Brown. The institution began business with a capital of $5,000 and the banking house was located across the street from the present bank building. In 1884 the bank decided to nation alize and increase its capital to $50,000, and also to take in additional stockholders. Schuyler National Bank was the name chosen. The present building was erected in 1885 at a cost of $25,000. The bank changed from a national to a state bank and became known as the Schuy ler Bank in June, 1916. Totals at close of business on the opening day were $7,191. The totals at the close of business on the bank’s seventy-fifth anniversary were $3,838.175. 4 6 Y E A R S S E R V IC E W e invite you to use our com plete correspondent services. NATIONAL BANK «f COMMERCE LINCOLN, NEBRASKA 46 y e ars a t 13th a n d O S t r e e t s N o r t h w e s t e r n B a n k e r , A p r i l , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Present officers are: J. A. Prokes, president; Joseph Krejci, vice presi dent; Jos. M. Rogers, cashier, and J. L. Hampl, assistant cashier. The directors are: J. A. Prokes, L. F. Otradovsky, Joseph Krejci, D. E. Westover and Jos. M. Rogers. Continental Anniversary Families of employes, stockholders and directors of the Continental Na tional Bank of Lincoln, Nebraska, were entertained at an open house at the bank last month, marking the institution’s 40th year. Officers of the bank were hosts to nearly 500. They conducted the guests on a tour of the bank and then pro vided refreshments at the Cornhusker Hotel. Addresses Loan Groups E. N. Van Horne, president of the Federal Land Bank of Omaha, ad dressed Farm Loan Association meet ings in Chadron and Valentine, Ne braska, last month. Several hundred farmers and ranchers attended each of the meetings which were the annual stockholders’ meetings. Lincoln Men Aid Scouts E. A. Becker, vice president of the Continental National Bank, Lincoln, has been elected president of the Corn husker Council Boy Scout Trust, Inc. He succeeds Judge Edward F. Carter of the Nebraska supreme court. Al bert Held, vice president of the Na tional Bank of Commerce, has been elected to the board of trustees of the fund. NEWS AND VIEWS (Continued from page 16) ness. Bank clerks, bookkeepers, tell ers, typists, and stenographers all do work similar to the corresponding jobs of their friends in other lines of busi- 55 ness with the exception that they usu ally do more of it.” Mr. Emerson says further, “Bankers fully realize that banks are service in stitutions and prosper in proportion to the service they render to their communities. Business men and other hank customers will not be inconveni enced by the proposed legislation for permissive five-day work week be cause the banker in every community knows the bank service needs of its customers and will continue to render the best possible banking service to its patrons. This has been demon strated in the 24 other states that have such legislation.” However, says Mr. Wessling, “This picture will greatly change in the years to come. Everywhere we see evidence that trust business is a grow ing business. Quarters are being en larged and remodeled: staffs are in- WHAT CAN YOU DO WITH $ 6 .8 0 ? j | Burroughs Adding Machine Com pany has appointed to its newly created position of Director of Re search, Dr. Irven Travis, a professor on the faculty and formerly supervisor of research of the University of Penn sylvania’s Moore School of Electrical Engineering. The appointment was announced by Raymond G. Bower, Burroughs vice president in charge of engineering. Dr. Travis, while continuing as a professor at the University of Penn sylvania, will assume direction of a new Burroughs research laboratory to be established in the near future in the Philadelphia area, chiefly for work in the field of electronic computing devices. Shareholders of the Bank of Amer ica, at a special meeting in San Fran cisco, voted in favor of the issuance of a common stock dividend on the basis of one additional share for each five shares owned. This dividend has the effect of in creasing the common capital structure of the bank from 8,531,710 shares out standing to 10,238,052 shares, and in dollar amount from $106,646,375 to $127,975,650. The additional funds put into common capital are to be supplied from previous earnings now in undi vided profits. D. R. Wessling, president of Wess- ling Services, believes there is a tre mendous challenge ahead for the trust departments of banks. He points out that according to a survey made by the Reserve City Bankers Association a short time ago, 54 per cent of their customers did not know the functions of a trust department, only 19 per cent had made a will, and only one per cent had named a corporate executor. creasing; advertising b u d g e t s are growing. All of this has brought a keen demand for trust officers. The young man who is about to launch his life’s work will find opportunity galore in this field of banking.” i 1 | i i Now there’s a heading that’s in triguing, if we do say so ourselves. It is directed to men who operate small banks — those having less than one thousand accounts. W ell, here’s something you can do with $6.80 . . . not by spending it but by investing it. You can arbi trarily pick out six names from your group of customers who now use conventional end stub pocket checks. You can then order from us two hundred Personalized Checks for each (the six orders will cost you $6.60 plus 20 cents postage), Then, as these six people drop into the bank, you can tell them what you have done and ask them how they would like to buy the checks for $1.35. Suppose they all refuse. Then you are out $6.80 .. . and our face will be very red. But suppose they all buy... then you take the $6.80 and repeat the operation. And after you've done it five or six times you’ll have enough surplus to buy twelve orders at a time. First thing you know all your customers will be using Personalized Checks and your check expense will move over to the income side. T o o slow tor you? Well perhaps. But just for fun, why not try it? M anufacturing Plants a t: NEW Y O R K , C L E V E L A N D , C H IC A G O , K A N S A S C I T Y , ST. PAUL CHECK PRINTERS cfine. W HEN NEEDED SEASO NAL LOANS ARE THE "B O T T L E N E C K " IN A BUSINESS Banks may safely and profitably extend accommodations when Warehouse Receipts, issued by the WILLIAM H. BANKS Organization, are used as collateral. The Borrower's Inventory, represented by such Warehouse Receipts, need not be moved from his premises. Thus the whole procedure is fast, economical and efficient. Write or 'phone us today for details. DIVISION OFFICES Des Moines, Iowa it St. Louis, Mo. Grand Rapids, Mich. it Madison, Wis. Fayetteville, Ark, it * Angola, Indiana Weslaco, Texas YOUR STATE BANKERS ASSOCIATION OFFICIAL SAFE, VAULT AND TIMELOCK EXPERTS F. E. DAVENPORT & CO. OMAHA https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o rth w e s te r n B an ker, A p ril, 1949 5() "him and his short cuts! . . . . . . "I tell ya, Al, it's maddening! expert . . . that's ok. Bein' an efficiency- Going around to the Live Stock: National’s correspondent banks to advise them on in ternal operational problems . . . that’s ok! But when he starts showing these banks so many short cuts to fast, accurate banking that the machines can't keep up . . . then that’s going too far!!! Next thing they'll be wantin' 'em jet-propelled!'' Honestly, our Internal Operations Survey can't speed, up banking that much . . . but it can eliminate bottle necks where they exist! The survey is free— write and ask to be included! LIVE STOCK O MA H A , BANK NEBRASKA The Bank of Friendly 2 4 - H o u r Servi ce Member of Federal Reserve and Federal Deposit Insurance Corporation N o r t h w e s t e r n B a n k e r , A p r i l , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 57 IO elder Bielenberg had been a director of the bank for 30 years. W il NEW S H A RRy W. SC H A LtER President Storm Lake Greene County Meeting The Greene County, Iowa, Bankers Association were hosts last month to the bank officers and directors of Greene County and the bank officers from Boone, Ogden, Glidden, Carroll, Lake City, Farnhamville, Gowrie, Lanyon, Harcourt, Perry, Bagley, Bayard, Coon Rapids, Yale, Rockwell City, Panora and Guthrie Center at a dinner held in the K. C. hall in Jefferson. The subject of the meeting was con servation of the greatest asset that any of the banks have, the soil, and Tom Kelly, a conservationist and chalk talk artist gave an illustrated lecture of real interest to the bankers and their guests. In addition to bankers, the soil con servation technicians and the soil con servation commissioners were also in attendance along with the editors of the county newspapers. N. P. Black Reappointed Newton P. Black was reappointed superintendent of banking in Iowa last month by Governor William S. FRANK WARNER Secretary Oes Moines from June 30th. He became superin tendent of banking April 9, 1946, when he succeeded the late Melvin W. Ellis. Doubles Capital Stock The Farmers State Bank of Jewell, Iowa, had its capital stock doubled last month, making capital $100,000 and surplus $50,000. This is the sec ond time in less than five years that the Farmers State Bank has doubled its capital. The bank carries an ex cellent loan record for banks of its size and the increased capitalization was made to afford better operations. The bank also operates an office at Ellsworth. The Security Savings Bank of Eagle Grove, Iowa, began its second halfcentury of banking last month with a renewal of its charter for another 50 years and an increase in its capital from $50,000 to $100,000. Total capital, surplus and undivided profits now are over $250,000. Deposits are $4,230,000, and total resources are $4,484,000. At the regular monthly meeting of the board of directors of The State Central Savings Bank, Keokuk, Iowa, J. H. Hanan of Farmington was elected second vice president. Mr. Hanan formerly was an assist ant cashier in the Des Moines Valley State Bank of Farmington, which was consolidated with the State Cen tral Savings Bank recently. An office of the latter hank is now maintained in Farmington. Heads Rawley Bank L. D. Wallace, druggist at Rowley, Iowa, was recently elected president of the Rowley Savings Bank to take the place of P. C. Thedens who died during the past year. Beardsley. Mr. Black, who is also president of the Perry State Bank, was appointed for a full four-year term https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis E. G. Untiedt, who has been presi dent and active manager of the State Bank of Terril, Iowa, since April, 1941, announces that he has sold the controlling stock of the bank to W. B. Hargleroad, Jr. of Omaha, Nebraska, and E. W. Youell, Jr. of Tekamah, Nebraska. Mr. Hargleroad has been elected president of the bank and member of the board of directors and Mr. Youell has been elected executive vice presi dent and active manager of the bank. Mr. Youell was born and reared on a farm, is a graduate of the University Pass 50-Year Mark New Officers at Keokuk N. P. B L A C K R eappointed superintendent of Iow a B anking Departm ent Sells Terril Bank New Director at Schleswig Bart Bielenberg has been elected a director of the Farmers State Bank of Schleswig, Iowa, to fill the vacancy created by the recent death of his father, William Bielenberg, 65. The E. w. Y O U E L L , JR. E xecu tiv e V ic e President of Nebraska, and is a former high school athletic coach. He was a field man with the Federal Land Bank of Omaha for five years, spent three and one-half years in the Army, serving overseas and on January 1, 1946, en tered the employ of the First National Bank of Tekamah, Nebraska, which has assets of approximately $4,000,000. Two years later he was elected assist ant cashier. Mr. Hargleroad is manager of the mortgage loan department of the Serv ice Life Insurance Company of Omaha and will continue there in that ca pacity. Prior to joining the Service Life Insurance Company he was en gaged in the banking business for 18 years. Mr. Untiedt has no immediate plans for re-engaging actively in the bank ing business but will take a wellearned rest with a view of improving his health. However, he will continue as president of the Citizens State Bank of Webb, Iowa, and as a director of N o rth w e ste rn Banker, A p ril, 1949 58 Iow a N ew s the First National Bank of Wilmont, Minnesota. The sale of the State Bank of Terril was negotiated by the Bankers Service Company of Des Moines, Iowa. The last published statement of the bank showed $25,000 capital, $25,000 surplus, $26,000 undivided profits, and $1,188,000 in deposits. FOR SALE— Old established 2% million dollar bank and insurance agency in rich dairy section. Room fo r two top positions. Write HMF Northwestern Banker, 527 7th St., Des Moines, Iowa. ★ ★ Heads Sioux City A.I.B. George A. Rehder Malcolm Erickson was elected presi dent of the Sioux City chapter of the American Institute of Banking at a dinner meeting in Sioux City last month. Other officers named were L. C. Jen sen, first vice president; Leslie Olson, second vice president; Miss Eunice Koenig, secretary, and Lawrence Oemig, treasurer. Miss Jane Moline was elected chairman of the women’s committee. Plans were discussed for selection of delegates to the organization’s na tional convention in Portland, Oregon, next month. George A. Rehder, 64, vice president of the Lincoln Savings Bank of Rein beck, Iowa, and manager of that bank’s office in Lincoln, died at his home last month. He became associ ated with the Lincoln Savings Bank in Lincoln in 1918 as assistant cashier, later becoming cashier. In 1934, when the bank merged with a Reinbeck in stitution, he became vice president but continued to manage the Lincoln of fice. ★ Factory, Farms or Feedlot Items Correspondent service at the First National Bank in Sioux City is both general and specialized, to care for all sorts of items, including grain and live stock business. First National officers are skilled in farm and livestock matters. They are egually at home in factory, farm or feedlot. W e invite you to use this bank for all your Sioux City items including livestock, grain and hay proceeds. A. G. SAM, President J. T. Grant, Vice President E. A. Johnson, Assistant Cashier J. R. Graning, Cashier H. H. Strifert, Assistant Cashier W. L. Temple, Assistant Vice President K. J. Shannon, Assistant Cashier J. Ford Wheeler, Auditor Votât N A T IO N A L BANK in SIOUX CITY Let Bettendorf Contract A $60,000 contract covering construc tion of the remainder of the Betten dorf Bank and Trust Company, Bet tendorf, Iowa, has been awarded to Summers Construction Company of that city, it was announced last month by W. E. Bettendorf. A previous contract for $26,000 cov ered the vault, first floor and base ment. Most of this work has been finished. The final contract covers all items for completion of the bank building except furnishings and fit tings for the bank itself. No definite date has been set for the opening of the bank but it is ex pected that construction will be com pleted to permit opening late in the spring. New President at Baxter Directors of the State Savings Bank of Baxter, Iowa, have elected Dr. James McKenzie president to fill the vacancy caused by the death of M. J. ICettenhofen. Dr. McKenzie has been vice president. Calvin Noah was elected as the new vice president. Other officers active in the manage ment of the bank are A. F. Agena, cashier, and H. F. Sturges, assistant cashier. Remodeling Kalona Bank Remodeling of the Farmers Savings Bank of Kalona, Iowa, was started re cently by contractor R. A. Martineau of Muscatine. A new entrance is be ing constructed and the interior will be rebuilt and rearranged. Resigns at New Hampton Harvey J. Kolthoff resigned his posi tion as assistant cashier of the First National Bank of New Hampton last month and has opened an office in New Hampton offering general tax work and bookkeeping service. Henry County Officers MEMBER FEDERAL RESERVE SYSTEM MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION ★ N o r t h w e s t e r n B a n k e r , A p r i l , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ★ ★ C. R. Atwell, president of the Mount Pleasant Bank & Trust Company, Mount Pleasant, Iowa, has been elected president of the Henry County Bankers Association. R. C. Eckley, as- https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 59 S in c e 1 8 6 8 — when this bank was founded, we have handled the accounts of practically every type of industry in the Chicago area. This long and varied experience has proved of value to our many correspondent banks throughout the middle west. We cordially invite you to write or call on us. LIVE STOCK ■ BANK a/* tA a fio n a f E ST A B L ISH E D 1 8 6 8 U N IO N S T O C K Y A R D S M em ber Federal Deposit Insurance Corporation N o rth w e ste rn Banker, A p ril, 1949 60 Iowa News sistant cashier Farmers State Bank, New London, is vice president, and Orville Allender, assistant cashier Henry County Savings Bank, Mount Pleasant, secretary-treasurer. Iowa, was elected president of the Tama County Bankers Association at a meeting in Dysart. He succeeds George Elwell, cashier of the Farmers Savings Bank of Garwin. La Verne Staker, assistant cashier of the Farmers Savings Bank of Garwin, is the new vice president, and Arlo Hansen, of the Lincoln Savings Bank, Reinbeck, succeeds Mr. Bran son as secretary-treasurer. Change in Ruthven Hours The Ruthven State Bank, Ruthven, Iowa, will remain open during the noon hour each day of the week, and close Saturday afternoons. The change in hours is being made to give the public continuous service throughout the day. Heads Boone C. of C. Chosen to head the Boone, Iowa, Chamber of Commerce for the new year is Morris Miller, vice president of the Boone State Bank and Trust Company, who has served as a mem Elect Tama County Officers I. R. Branson, assistant cashier of the First National Bank of Traer, xS OEPORT j# WE ° ME MB E R Clinton County Meeting -v ' W s»Ò si* ' \eteW , e0t ,«e sV 0tVàe co* F E D E R A I DE P OS I T I N S U R A N C E Did you know that your Banker’s Blanket Bond does not protect your Cash Letter while it is in transit by mail or express? Ask about our Cash Letter Policy, which fills the gap. F IR S T N A T IO N A L B A N K B U IL D IN G N o r t h w e s t e r n B a n k e r , A p r i l , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis b e to - * tate t .a « * * * 6x ° ut • The First Nashua State Bank, Nashua, Iowa, is undergoing extensive remodeling, the work being done by the R. A. Stoltz Construction Com pany of New Hampton. The work includes cutting down the old cage type fixtures to a new mod ern style. Fluorescent lighting will be installed. The walls and ceiling will be redecorated, the varnish re moved from all the mahogany wood work, which is to be waxed and left with the natural grain of the wood showing. Stanley A. Haw, president of the Haw Hardware Company, has been elected president of the Fidelity Sav ings Bank of Ottumwa, Iowa. Mr. Haw’s election was announced following a meeting of the board of directors in which Eugene Wulfekuhler, Sr., Fidelity president since 1943, was named chairman of the board. The board also announced the pro motion of Donald M. Rowe to the posi tion of executive vice president, and said that Mr. Wulfekuhler’s new office as board chairman is preliminary to an extended leave of absence. C. R. Colton will remain as cashier and vice president of the bank with no change in other officer personnel. A* ^ Remodeling Nashua Bank Heads Ottumwa Bank U N IT # o** to & <** ■ oY VtVes ÎOÏ Y tv viO' .OÇV o * * * . eS 6 ° t0 V’ teinc ber of the board the past year. The new president was to take office April 1st. C H IC A G O ca« ^ Fifty officers and directors of banks represented in the Clinton County Bankers Association met in Clinton, Iowa, at a dinner meeting last month for their annual meeting. L. J. Derflinger, president of the Clinton National Bank, was elected president of the association. Other newly elected officers are: Walter Thiele, cashier of the Union Savings Bank, Grand Mound, vice president; Emil Johannsen, assistant cashier of the City National Bank, Clinton, treas urer; and Robert J. Burns, assistant cashier of the Clinton National Bank, secretary. President Derflinger appointed the county legislative committee consist ing of J. Yvo Floerchinger, executive vice president of the De Witt Bank and Trust Company, chairman, and Mr. Thiele and Mr. Johannsen. ’ , , Voo 4 "P \¿VeY C O R P O R A T I O N Scarborough & Company Insurance Counselors 3, I L L I N O I S * STATE 2 4325 I, f i S i to Banks 61 PRO M PT S E R V IC E IN DES MOINES VA LLEY BANK AND T R U S T C O M P A N Y DES M O I N E S MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orth w estern B a n k e r , A p r i l , 1949 62 Iowa News Attorney E. C. Halbach, a director of the Clinton National Bank, gave an interesting and informative talk on the Federal Estate Tax Law. Moves to Indianola C. D. McCoy, executive vice presi dent of the Warren County Bank and Trust Company of Indianola, Iowa, an nounces that Stanley M. Hogshead has been added as a vice president of the bank. Mr. Hogshead had been an officer of the Palo Alto County State Bank of Emmetsburg and was man ager of the Mallard office. At a recent meeting of the board of directors Mr. Hogshead was elected a vice president of the bank and will be associated with Mr. McCoy, execu tive vice president, and Clark Mahr, cashier, in the management of the bank. William Zunkel, executive vice president of the Palo Alto County State Bank, announced that Alvah Jorgensen of Exira will succeed Mr. Hogshead as assistant cashier and manager of the Mallard office. V i 0 *>s M o i n v s eorge jo r g en sen , vice presi G dent of the Iowa-Des Moines Na tional Bank, was re-elected treasurer of the Des Moines Independent School District last month. This is Mr. Jor gensen’s second term of office. W. J. Goodwin, chairman of the board of the Central National Bank and Trust Company, has returned to Des Moines after spending a month in Florida. Mr. and Mrs. E. F. Buckley also have returned to Des Moines, having spent the last three weeks of March in Phoenix. Mr. Buckley is president of the Central National Bank and Trust Company. Serving 4 States W e are humbly grateful for having earned the good will of so many bankers in Iowa, Nebraska, South Dakota and Minnesota who have chosen us as their Sioux City correspondent. W e know they depend on us. And we leave no stone unturned to help them in unusual matters as well as in day-to-day transactions. This same service awaits you if you are looking for a connection in Sioux City. Your inquiries are welcomed. NATIONAL RANK Member Federal Deposit Insurance Corporation THE STRONG MEMBER N o r t h w e s t e r n B a n k e r , A p r i l , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis BANK MINNEAPOLIS FRIEND FEDERAL OF DEPOSIT THE I NDEPENDENT INSURANCE r A 4 BIG STEPS IN PLANNING BOND PORTFOLIO < S ¿ cn * # ' (? ¿ ¿ y OF Albert J. Robertson, vice president, and Sherman W. Fowler, assistant vice president of the Iowa-Des Moines National Bank, attended the Central States Group Meeting of the Invest ment Bankers of America in Chicago last month. 4 John de Jong, vice president of the Iowa-Des Moines National Bank, is cochairman of the 1949 fund raising campaign for the Des Moines Art Cen ter. Henry Fraukel, head of Frankel Clothing Company, is chairman. (c a sc u m rr M A R Q U E T T E W. Frank Howell, assistant cashier of the Iowa-Des Moines National Bank, was taken to his home last month after suffering a slight stroke while at the bank. He was reported recovering nicely. X- BANKER" CORPORATION (Continued from page 15) —no one knew when, it had a relative ly large amount of its governments concentrated "in the one-year bracket. Of its total government portfolio of $1,600,000, $600,000 were due in one year, and $800,000 more were due or optional in the two- to five-year brack et, spread fairly evenly as to-maturities. > Y O U R STATE B A N K ER S A S S O C IA T IO N O F F IC IA L S A F E , V A U L T A N D TIM ELO C K EXPERTS F. E. DAVENPORT & CO. OM AHA t Iowa News Because the management felt it could not accurately estimate expected deposit losses from an analysis of their accounts, we made some computations which interested them greatly. We assumed first a deposit decline of 25 per cent, or $750,000, leaving deposits at $2,250,000. Since they felt they would still require 20 per cent of their lower deposit level in cash, $450,000 this plus the anticipated deposit de cline of $750,000 made a total cash requirement of $1,200,000. To meet this they had cash at the present time of $600,000 and one-year governments of $600,000, exactly the theoretical need if 25 per cent of deposits evaporated in one year. All of the directors antici pated a deposit decline of at least this amount, hut none of them expected it this soon. When you have worked out a ma, turity distribution for your gov ernment portfolio which you think fits your needs, it will be interesting for you to check this distribution with that of banks in a good cross section of the country. Every month the Treasury Bulletin, which you can se cure for the asking, carries a survey of the ownership of marketable gov ernment securities held by about 7,300 commercial banks. 1 don’t mean to imply that your maturity distribution should coincide with the average. Local conditions should, of course, play an important part in the planning of your portfolio. However, these figures are interesting and give you an opportunity to check your planning against the composite judgment of a good many bankers. So we figured how they could meet a decline in deposits of 50 per cent, taking them back to $1,500,009. Twen ty per cent of this deposit level would be $300,000 for their cash requirement and the $1,500,000 deposit decline added up to a possible cash need of $1,800,000. Their present cash and one-year governments would supply $1,200,000 of this and governments op tional in the second, third and fourth years were enough to make up the balance. Option Dates or Maturities? Good Community Factors In recent years the community in which this bank was located had grown. The Chamber of Commerce had been active and a factory had been attracted to the town. Not even the most pessimistic director could foresee a deposit decline of 50 per cent in four years. But the bank was in shape to meet one through maturities alone. And. in addition to this, they held other relatively short governments which could have been sold if neces sary. This bank was overemphasizing li quidity at the expense of potential earnings. A simple computation such as this, even though it is based entirely on guesswork, may give you courage to extend your maturities somewhat or it may show up potential weaknesses in your picture if the one-way street we have been following for some time turns a corner. However, conceding that this is only guesswork, if you seriously study some of these factors you will have established a basis upon which you may then begin to develop a logical investment program. By re viewing your estimates of deposit trends occasionally you can revise your guesses and make your program con form to your reviewed ideas. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Should you use option dates or 3■ maturities of governments when you work out a program of staggered maturities? I feel that in a break down of this kind the probable time when the funds will be available to you is the important factor rather than the maximum time the govern ment may, if it chooses, allow the in- ENVELOPES G e a r e d to the B a n k in g B u sin ess 63 CLIENTS’ FUTURE? . . . JUST ACROSS THE BORDER American business men are finding that Canada offers them vast opportunities for expansion. Here are the figures: annual im p o r ts .......... $2 Vi billion annual exports .......... $3 billion wages & salaries. . . . $7 billion gross national product $15 billion And Canada has immense resources yet to be developed— in raw materials and abundant, economical power. Since 1817, the Bank of Montreal has been helping Canada grow ... has grown with her. We stand ready to answer any specific questions you or your clients may want to ask, so talk Canada with us. We ll be pleased if you will call on us through our offices in New York, Chicago or San Francisco, or through our Foreign De partment in Montreal. * * * SEN D FOR YO U R F R E E CO PY As a starter, this 100-page, fact-filled booklet C A N A D A T O D A Y , will an swer a great many of your qu estion s about C a n ad a’s people, her industries and her resources. Write today for Booklet C-54 to any of our U.S. offices,or to ourForeign Department in Montreal. BANKERS FLAP . .. s e a l s quickly a n d s ta y s s e a le d . Pr otect bulky mail in t h e s e s t r o n g shouldered, w ide seam ed, deeply g u m m e d e n v e l o p e s . W rite fo r s a m p l e s a n d prices. B a n k of M ontreal Canada’s First ‘Bank In Canada since iS i/ .. . In U.S. since 1859 u. s. NEW Y O R K ..........................64 Wall St. CHICAGO................ 27 S. La Salle St. SAN FRANCISCO - 333 California St. t *ADC ms#k Tension Envelope Corp. New York 14, N. Y. Minneapolis 1, Minn. St. Louis 10, Mo. Des Moines 14, Iowa Kansas City 8, Mo. HEAD OFFICE MONTREAL LONDON 47 Threadneedle S t., E. C. 2 9 Waterloo Place, S. W. 1 R E S O U R C E S O V ER $ 1 ,9 0 0 ,0 0 0 ,0 0 0 N o rth w e ste rn B anker, A p ril, 1949 64 Iowa News V vestment to run. For this reason, in most cases, I would prefer to use the option date. you prepare your maturity 4• When schedule you must decide where you can most logically place your nonmarketable issues such as savings b o n d s and depositary bonds. Of course, these may be redeemed entire ly at your option whenever you wish and you could make a strong case for listing these under your securities due within one year. However, if you do this you may have a tendency to hold a smaller amount of very short mar ketable issues than you may need from time to time. Under these cir cumstances you would certainly not wish to redeem these nonmarketable issues because you would be giving up unusually good income that you could not replace. So, I prefer to list such bonds under their actual maturity dates but, of course, to keep in mind that there is no actual market ex posure in holding them. When you have reached this point you have an investment plan. This can easily be put down on paper as a desired liquidity statement and can be compared from time to time with your actual figures. This statement of desired liquidity will be of great assistance to you from day to day when you have money to invest or if you need to raise money for any pur pose. To summarize, this business of man aging a government portfolio isn’t too > C O N V E N T IO N S A pril 18-22, Group Meetings, Nebraska Bankers Association. A pril 23, Federal Reserve Bank Con ference, M inneapolis, Hotel N ic ollet. A pril 24-26, A.B.A. Executive Council, French Lick, Indiana, French Lick Springs Hotel. A pril 27-28, Annual Meeting, Central States Conference, French Lick, Indiana, French Lick Springs Hotel. May 6-7, Annual Convention, South Dakota Bankers Association, A b erdeen, A lon zo W ard Hotel. May 9-11, Annual Meeting, Missouri Bankers Association, Kansas City, H otel M uehlebach. May 10-13, and May 24-27, G roup M eet ings Iowa Bankers Association. May 18-20, Annual Meeting, Kansas Bankers Association, Kansas City, Missouri. May 30-June 3, A .LB. Annual M eet ing, Portland, O regon, H otel Multnomah. June 8-9, Annual Convention, M inne sota Bankers Association, St. Paul, Hotel St. Paul. h e a s t c r n June 13-17, 47th Annual Convention, Am erican Institute o f Banking, Portland, Oregon. June 15-16, Annual Convention, Illi nois Bankers Association, St. Louis, Hotel Jefferson. June 17-18, Annual Convention, North Dakota Bankers Association, M i not, Clarence Parker Hotel. June 20-22, 53rd Annual Convention, W isconsin Bankers Association, Milwaukee, Schroeder H otel. June 20-July 2, Graduate School of Banking, Rutgers University. August 22-September 23, Central States School of Banking, Univer sity of W isconsin. Madison. O ctober 11-12, Annual Convention, Nebraska Bankers Association, Lincoln, H otel Cornhusker. O ctober 17, 18, 19, 63rd Annual Con vention, Iowa Bankers Associa tion, Des Moines, H otel Fort Des Moines. NATIONAL BANK WATERLOO N o r t h w e s t e r n B a n k e r , A p r i l , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis O ctober 19-22, Annual Convention, Financial P u blic Relations Asso ciation, Chicago, Edgewater Beach Hotel. O ctober 23-26, 25th Convention, Na tional Association of Bank A u di tors and Com ptrollers. O ctober 30-November 2, 75th Annual Convention, Am erican Bankers Association, San Francisco. (C on vention headquarters to be an nounced later.) A * fowa News difficult or too complicated. You need have no worries about the credit of the borrower. You don’t have to be an economist. You can follow a few readily available figures published by the Federal Reserve Banks weekly and by the Treasury and the Federal Re serve monthly to see which way the wind is blowing and whether your pol icies are in general in line with other banks. Your city correspondents will always welcome the opportunity to 65 discuss your portfolio problems and I am sure can give you a great deal of help. Your local conditions are all impor tant to consider against the back ground of the country generally. Any investment plan, even though care fully thought out, should be reviewed and revised as conditions change. Whether it is a very detailed invest ment plan or a general one, have some definite program.—The End. N of A D V E R T IS E R S N a t i o n a l B a n k o f C o m m e r c e ............................ 54 N a t i o n a l B a n k o f W a t e r l o o ...............................64 N a t i o n a l C a s h R e g i s t e r C o m p a n y .................. 29 N e b r a s k a S a l e s b o o k C o m p a n y ....................... 53 N o r t h w e s t S e c u r i t y N a t i o n a l B a n k ............ 46 o O m a h a N a t i o n a l B a n k ...........................................21 P P u b l i c N a t i o n a l B a n k a n d T r u s t C o ......... 40 A P R I L , 1949 A A d d r e s s o g r a p h S a l e s A g e n c y ............................ 50 A l l i e d M u t u a l C a s u a l t y C o m p a n y ...................39 A m e r i c a n E x p r e s s C o m p a n y . ..................... 2 4 - 2 5 A m e r i c a n N a t i o n a l B a n k a n d T r u s t C o.— C h i c a g o ..................................................................... 40 A s h w e l l a n d C o m p a n y ...........................................35 B B a n k o f M o n t r e a l .................................................... 63 B a n k e r s R u b b e r S t a m p , I n c .............................. 65 B a n k e r s S e r v i c e Co., I n c ..................................... 27 B a n k e r s T r u s t C o m p a n y — D e s M o i n e s . . . 67 B ankers Trust C om pany— N ew Y o r k . . . . 8 B a n k s , W i l l i a m H ., W a r e h o u s e s , I n c ......... 55 B u r r o u g h s A d d in g M a ch in e C o m p a n y ... 4 C C entral N ational B an k and T ru st C 0 ....1 2 C h a s e N a t i o n a l B a n k ............................................ 7 C ity N ational B an k and T ru st C om p a n y — C h i c a g o ....................................... ....................... 27 C o n t i n e n t a l N a t i o n a l B a n k — L i n c o l n . . . . 53 D D a v e n p o r t , F . E., a n d C o m p a n y ............. 5 5 - 6 2 D e L u x e C h eck P rinters, I n c ......................... 55 D es M oines B u ildin g, L oa n and S avings A s s o c i a t i o n .............................................................. 65 D r o v e r s N a t i o n a l B a n k ........................................ 31 F F irst N ational B a n k — C h i c a g o ................ 14 F irs t N ation al B a n k — O m a h a . .................54 F irst N ational B a n k — St. L o u i s ..............30 F i r s t N a t i o n a l B a n k — S i o u x C i t y .................. 58 F i r s t St. J o s e p h S t o c k Y a r d s B a n k ............ 50 F i r s t W i s c o n s i n N a t i o n a l B a n k ................... 22 G S St. P a u l M e r c u r y I n d e m n i t y C o m p a n y . . .3 8 St. P a u l T e r m i n a l W a r e h o u s e C o m p a n y . .26 S c a r b o r o u g h a n d C o m p a n y ................. 3 6 - 4 9 - 6 0 S e c u r i t y N a t i o n a l B a n k — S i o u x C i t y ..........62 S q u a r e D e a l I n s u r a n c e C o m p a n y .................. 3S S t o c k Y a r d s N a t i o n a l B a n k — O m a h a . . , . 51 T T e n s i o n E n v e l o p e C o r p o r a t i o n ....................... 63 T o o t l e - L a c y N a t i o n a l B a n k ....................... 5 2 - 5 3 U U n i t e d S t a t e s N a t i o n a l B a n k — O m a h a . . . 48 V V a l l e y B a n k a n d T r u s t C o m p a n y ................ 61 W W a l t e r s . C h a r l e s E., C o m p a n y ..........................50 W e s t e r n M u t u a l F i r e I n s u r a n c e C o ............. 39 W h e e l o c k a n d C u m m i n s ......................................34 DES MOINES BUILDING-LOAN & MERCHANTS M U T U A L BONDING COMPANY Incorporated 1933 Home Office SAVINGS & LOAN BUILDING H Des Moines, Iowa I I n v e s t o r s S y n d i c a t e , I n c .................................... 34 I o w a - D e s M o i n e s N a t i o n a l B a n k .................. 68 I o w a L i t h o g r a p h i n g C o m p a n y ........................ 65 Iv Koch B rothers ......................................................... 65 L L a M o n t e , G e o r g e a n d S o n ................................ 3 L a w r e n c e W a r e h o u s e C o m p a n y .................... 6 L i v e S t o c k N a t i o n a l B a n k — C h i c a g o ..........59 L i v e S t o c k N a t i o n a l B a n k — O m a h a ............ 56 L i v e S t o c k N a t i o n a l B a n k — S i o u x C i t y . . 44 Oldest in Pes Moines 210 nth Ave. Dial 2-830,1 ELMER E. MILLER Pres, and Sec. HUBERT E. JAMES Asst. Sec. FOR YOUR ENJOYMENT . . . Listen to the “ WORLD OF MUSIC” KRNT, 1350 KC G e n e r a l A m e r i c a n L i f e I n s u r a n c e C o . . . . 36 H a l s e y , S t u a r t a n d C o ., I n c .............................. 32 H a r r i s T r u s t a n d S a v i n g s B a n k .....................28 H o m e I n s u r a n c e C o m p a n y ............................. 5 SAVINGS ASSOCIATION 1 to 1:30 p.m. Sundays ' This is Iowa’ s oldest surety company. A progressive company with experi enced, conservative management. We are proud of our two hundred and fifty bank agents in Iowa. To be the exclusive representative of this company is an asset to your bank. ’■ ■■ e . - : ■. ■ M M a r q u e t t e N a t i o n a l B a n k ....................................62 M e r c h a n t s M u t u a l B o n d i n g C o m p a n y . . . .65 M e r c h a n t s N a t i o n a l B a n k .................................. 2 M e r r i l l L y n c h , P i e r c e , F e n n e r & B e a n e . . 35 M in n eap olis-M olin e P o w e r Im plem en t C o m p a n y ................................................................... 43 M i n n e s o t a C o m m e r c i a l M e n ’ s A s s n ............... 42 M i s s i s s i p p i V a l l e y T r u s t C o m p a n y ............ 60 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis E. H. WARNER Secretary and Manager W. W. WARNER Assistant Secretary Northwestern Banker, April, Ì949 66 DIRECTOR’S ROOM Double Trouble A small Wisconsin paper printed the following correction: “Owing to a typographical error, our paper carried a notice last week that Mr. John Jones was a defective on the police force. We regret the error. Mr. Jones is really a detective in the police farce.” The Straight of It Confused Groom: I was asked to buy either a casserole or a camisole. I can’t remember which. Clerk: That’s easy. Is the chicken dead or alive? Enthusiasm First Motorist: I love the beauties of the countryside. Second Motorist: So do 1. Some times I give ’em a lift. M asted Flattery Mike: ’Tis a fine lad you have there. A magnificent head and noble features. Could you loan me a couple of dollars? Pat: I could not. ’Tis me wife’s child by her first husband. Lingrateful! The young wife greeted her husband affectionately when he returned from the office. “ Poor darling!” she cooed. “ You must he tired and hungry. Would you like some nice soup, tender chops with golden brown potatoes and green peas and mushrooms on toast?” “No, darling,” he replied. “ Let’s save the money and eat at home.” All Out of Breath Following is a typical phone call be tween two law firms: Phone rings: “ This is Perkins, Park ins, Peckam and Potts—Good morn ing.” “ I’d like to talk to Mr. Perkins, please.” “Who is calling, please?” “ Mr. Pinckam of Pinckam, Petum, Popum and Pogg.” “One moment, please. I’ll give you Mr. Perkins’ office.” “ Hello, Mr. Perkins’ office.” “ I’d like to talk to Mr. Perkins.” “ Mr. Perkins? I’ll see if he’s in. Who is calling please?” Northwestern Banker, April, 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis “ Mr. Pinckam of Pinckam, Petum. Popum and Pogg.” “ One moment, please, Mr. Pinckam. Here is Mr. Perkins. Mr. Pinckam on the line, please.” Okay, Mr. Perkins. I have Mr Pinckam of Pinckam, Petum, Popum and Pogg on the line. Go ahead, please.” “ ’Lo, Joe. How about lunch?” “Okay. ’Bye.” Truth The average man can detect a rattle in his car a lot quicker than one in his head. Let’s Settle It There would be fewer arguments if we tried to determine what’s right in stead of who’s right. Prerogative A five-year-old daughter was “help ing” her daddy at the work bench in the cellar, when he finally tired of her incessant chatter and questions. He asked her patiently to be quiet for a while. “ I don’t have to be quiet,” she stated importantly. “ I’m a woman.” Habit Forming An archeologist says Europe touched America millions of years ago. The custom has not been abrogated by the intervening centuries. M ho’s Riding Here? Pat climbed up on a horse for his first riding lesson, and the horse started to balk. Looking overside, he discovered the horse had caught a back foot in the stirrup, and he said to the horse very disgustedly, “Begorry. if you’re goin’ to get on. I’m goin’ to get off!” r f Progressive An autoist stopped at a wayside farm and said he would like to buy a chicken. In due course, the farmer handed it to him, saying, “Four pounds —$1.40.” “Only 35 cents a pound?” asked the customer. “Yep,” said the farmer, “prices are born out here, but raised somewhere else.” No Depth Trying to explain the reason for worldwide disagreement, one Indian said to another, “ W h e n nations smokeum pipe of peace, no one inhale.” N u ß Said “Boulder!” The word came out of the clergyman’s mouth a split second after the hammer landed on his finger. “What’s that mean?” asked his wife, curiously. “ Biggest dam in the world.” was the answer. Culinary Crime Husband: Who spilled the mustard on this waffle, dearest? Wife: Oh, how could you? This is my lemon pie. First Choice Stranger (of a little boy): Who are those beautiful little girls? Little Boy: Oh, they’re the doctor’s children. He always keeps the best ones for himself. Is There Another? “Do men like talkative women or the other kind?” “What.other kind?” 4 I wr IMPORTANT to all Iowa To Iowa bankers, Des Moines is far more than a place to clear items, or hold conventions. As Iowa’s capital, Des Moines is a natural center of activities that affect business and banking interests throughout the state. Regardless of size or location, any Iowa bank has much to gain by having an account with Bankers Trust, Des Moines. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis BANKERS TRUST COMPANY 6th and Locust Des Moines, Iowa M em b er F ed era l D e p o sit In su ra n ce C orporation M em b er F ed era l R e s e r v e S ystem A STRONG, D EP EN D A B LE CORRESPONDENT CONNECTION T L Since 1875, through good times and bad, Iowa Banks and Bankers have learned that they can route their Des Moines business to the Iowa-Des Moines National Bank with complete assurance that every detail will be handled promptly and sat isfactorily. V Total Resources Over One Hundred Million Dollars IOWA-DES MOINES NATIONAL BANK u DES M OINES FOUNDED Member Federal Deposit Insurance Corporation .• '• , -■: V , ' ' ■ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ■ 1875
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