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A I 'l l l i .
1951
How We Finance
Home Improvements
— Fage 16
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
NEW BANK SERVICE IN ACTION— See Page 17
OFFICERS
Jam
E. H
es
a m il t o n
,
Chairman Executive Committee
S . E . C o q u il l e t t e ,
YOU ARE INVITED
to hear The Merchants
National Hour over
WMT, 9 to 10 each
Sunday evening . . .
an outstanding pro
duction used to pro
mote banking in Iowa.
Chairman of the Board
T.
John
H
a m il t o n
President
F red
W.
II,
R. D. B r ow n .
S m it h ,
Asst. Cashier
Vice President
O. A . K e arneiy ,
G eorge F. M il le r ,
Vice President
and Trust Officer
Asst. Cashier
S t a n l e y J. M o h r b a c h e r
Asst. Cashier
M a r v in R . S eilden
E verett C. P r a t t ,
Vice President
Asst. Cashier
R. W . M a n a tt,
C. F . P e r e m s k y ,
Vice President
Asst. Cashier
L. W . B r o u l ik ,
V ictor W . B r y a n t ,
Vice President
Asst. Cashier
J a m e s E . C oquilleitte ,
P etf.r B a il e y ,
Asst. Cashier
Cashier
G W N T W oo d
e
B
are
proud
to
Serve
a n k e r s
as
’ C
the
h o ic e
f If TODAY, MORE THAN HALF of the banks in Iowa are correspondents o f The Merchants
National. This “ network” contributes to the business health o f the Midwest by providing
nationwide service for local bank customers.
Our “ network” of local banks is a network of
“ roots” that faithfully nourish community enterprise with unexcelled banking service.
You
are cordially invited to utilize our facilities for friendly, reliable correspondent service. Mer
chants National service is strengthened by 70 years o f experience and by our high regard for
the paramount contribution local banks make to the American economic system.
THE
Merchants National
C E D
A K
K A
P
I D
S ,
t
O W
BANK
A
Member Federal Deposit Insurance Corporation
N o 765
N orthw estern Banker, published m onthly by the N orthw esternB anker Company, at 527 Seventh Street, Des Moines, Iowa. Subscription,
$3.00 per year. Entered as Second Class Matter January 1, 1895, at the Post Office at Des Moines, Iowa, under Act of March 3, 1879.
35c per copy,
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Federal Reserve Bank of St. Louis
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
. . .
fir s t c h e c k I e v e r w r o te
“It means a lot to me . . . and it goes a long way back!" » » An old
check, and like many others dated well before the turn of the century,
it enjoyed the protection offered by La Monte Safety Paper. For this
famous line has been in continuous production since 1871, the year
in which George La Monte perfected the original safety paper for
checks. » » Today La Monte Safety Papers are used in huge volume
by quality-conscious banks and corporations everywhere. Your lithog
rapher will gladly show you samples or you may write us direct.
A C h eck Paper All Your Ow n
Thousands o f banks and many of the larger corporations use La M on te
Safety Papers with their own trade-mark or design made in the paper
itself. Such i n d i v i d u a l i z e d ch eck paper provides maximum protection
against both alteration and cou nterfeitin g—makes identification positive.
TH E
WAVY
LIN ES ®
ARE
A
LA M O N TE
TR A D E-M A R K
No rthw e ste rn Banker, A pril, 1951
4
—your important sendings can
be on their way WITHIN 30 MINUTES
y
That s the kind of service your special attention”
items get when you address them to our Lock Box
R R (Rapid Router). And here’s why:
^
would — mail them with a separate letter of trans
mittal to:
LOCK BOX R R
CHICAGO 90
ILLINOIS
l he post office sorts mail to Lock Box R R
separate from our regular mail.
We collect from our "Rapid Router” box at
frequent intervals —from early morning to late
evening — seven days a week.
^
Items are delivered immediately to experienced
personnel at our Rapid Router desk who se
lect and put into effect the fastest means of
making presentation.
/|
They are immediately microfilmed and sent
on their way — often within thirty minutes of
the time we receive them.
you would like your important sendings to re
ceive this kind of service — and we are sure you
If
Upon request, we will send you a supply of printed
envelopes that will have your return address on the
corner card.
We will be glad to handle your important send
ings via Rapid Router, whether or not you have
established a correspondent relationship with us.
DSVISION F
The Bank s and Ba nkers Division
J o h n .1. A n t o n
G
aylord
M
e l v in
H. T
h ie s
V e r n e L . B a r t l in g
Edw ard D
ecker
C harles F. N
ew hall
Jo h n S. G l e a s o n , J r .
V ic t o r C .
von
M
e d in g
L a w r e n c e J. B e r r y
H . St a n l e y P ic k f o r d
E r n e s t J. H u l t g r e n
E d w a r d E . B r o w n , Chairman o f the Board
J a m e s B. F o r g a n , Vice-Chairman
H a r o l d V . A m b e r g , f ice-President
W
alter
1 ice-President
/ ice-President
Asst. Vice-President
Asst. Vice-President
Asst. Vice-President
Asst. Vice-President
Asst. Vice-President
Assistant Cashier
Assistant Cashier
Assistant Cashier
Assistant Cashier
T
A . F r e e m a n , Jr .
H o m e r J. L i v i n g s t o n ,
President
H u g o A . A n d e r s o n , Vice-President
M. H e y m a n n , Vice-President
H
erbert
P. S n y d e r , Vice-President
A
The First National Bank of Chicago
De arbo rn, Monroe a n d C la r k Streets
y
B u ilding With C h ic a g o Since 1863
MEMBER
FEDERAL
D EPO SIT
IN SU R A N C E
COR POR ATION
<
N o rth w e ste rn Banker, A pril, 1951
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
5
Can you find your
in each of these pictures?
1. LOOK CLOSELY . . . your bank is behind the proud
look in the eyes o f these parents. For wasn’t it at
the bank that their savings accounts grew to make
this day possible? Over 65,000,000 savings accounts
in American banks provide a safe place for security
to find reality, for dreams to come true.
2 . BEHIND THAT COMBINE you’ll find your bank again
. . . working with the farmer to help him produce
more for others and better his own living. He depends
on your bank (and his) to help him purchase new,
labor-saving equipment . . . buy cattle, sheep and
hogs for fattening and resale to the market.
3. THE REAL "FOUNDATION" for this new plant is the
4. YES, YOUR BANK is responsible for making that
sound commercial bank loan that took it o ff the
blueprints and made it a reality. Your bank is a
partner in your com m unity’s growth. N ot only in
helping finance expanded facilities but also in the
daily and seasonal operation o f businesses.
smile just a little wider on this happy father’s face.
F or your bank is ready to ease the load o f doctor
and hospital bills, as well as other emergency ex
penses, with a personal loan at low-cost bank rates
. . . which can be repaid in small payments.
EVERY AMERICAN with a bank deposit or
even one share of bank stock has an im
portant stake in American banking. Here
are just a few of the vitally important
services your banking system offers in
return: Checking Accounts • Corporate
and Private Trusts • Payroll Accounts •
Agency Accounts • Stock Registration and
Transfer Services • Collections and Drafts
• Pension Plans • Night Depositories •
Information Services, and many others.
Over 70% of the nation's banks (and
leading businesses) rely on Mosler vaults,
record safes, and other protective equip
ment. For no Mosler Bank Vault has ever
failed to give complete protection.
5. AND, YOU RECOGNIZE the one safe place to keep
your Government Bonds— your bank’s safe deposit
vault (very likely built by M osler). A safe deposit
box is the place to keep all o f your securities,
insurance policies, wills, birth certificates . . . any
papers or treasures that you can’t risk losing.
MMosler
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Federal Reserve Bank of St. Louis
6. AND NOW . . . even drive-in banking! Swing in
and complete your banking transaction without
g ettin g o u t o f y ou r car. M osler d rive-in bank
installations make it as safe as it is convenient.
Could there be any more convincing evidence o f
the modern, progressive spirit o f today’s banks?
R e p r in t s o f th is a d v e r t is e m e n t a r e a v a ila b le on
request. A d d re ss The M o sle r S a fe C o m p a n y , D e p t. L4,
H am ilton, O h io .
œm / '/as/díj
SINCE 1848
N o rthw e ste rn Banker, A pril, 1951
6
IT PAYS TO HAVE AN
effective connection
W hen you're concerned with the flow of water— or
of
credit— effective
connections
result
efficiency and better all-around results.
in
greater
From long
experience, Iowa hankers have found that the Bankers
Trust is a highly effective connection in Des Moines.
Bankers Trust Company
6th & LOCUST
DES MOINES
Member Federal Reserve System
Member Federal Deposit Insurance Corporation
•
DIRECTORS
PAUL
B E E R ...................
T H O S . A. B U R C H A M , (VI.D
F. W . H U B B E L L ...................
J. W
H U B B E L L ..................
E. J. L I N D H A R D T
S. F. M c G I N N ......................
R E E L ..................
F . R O S E N F I E L D ..........
JOHN
D. S H U L E R
N o rthw e ste rn Banker, A pril, 1951
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
E q u it a b l e
V.
P. a n d
Gen.
L ife
D a ir y
Co.
In s .
................... V i c e
P .,
P r e s id e n t
P -,
o f t h e B o a rd
B y -P r o d u c t s ,
Ta n gn e y
............... P r e s .,
C o . o f Io w a
M g r ., J e w e tt L u m b e r C o .
N a t io n a l
................... V .
.
S. C. P I D G E O N .....................
RUSSELL
. P r e s .,
. . . . V.
E. T . M E R E D I T H , J R . . . .
.
F ly n n
. .............................................................R a d i o l o g i s t
............... P r e s ..
F. S. L O C K W O O D ................
J.
. .
The
.......................................... C h a i r m a n
G E R A L D A . J E W E T T ...........
S H IR L E Y P E R C IV A L
OFFICERS
................... P r e s i d e n t ,
&
M c G in n
M e r e d it h
G re e n
T ru s t
P u b lis h in g
C o lo n i a l F u r n a c e
.................................. P r e s i d e n t ,
of
O f fic e r
H o t e ls C o .
............................................................................
.C h a ir m a n
In c .
B o a rd ,
Y e llo w
S h u le r
Co.
................C h a i r m a n
o f t h e B o a rd
S. C. P I D G E O N
.....................................................
F. S. L O C K W O O D
V ic e
C. W . M E S M E R
............................................V i c e
F. C. A T K I N S
L. N E V I N
WM.
LEE
. . .
P r e s id e n t
V ic e
O f fic e r
P re s id e n t
P re s id e n t
& C a s h ie r
..........................................V i c e
P re s id e n t
ELLISO N . . .
G. A. M O E C K L Y .
P re s id e n t
&> T r u s t
V ic e
P re s id e n t
............................................V i c e
P re s id e n t
A. F. E R I C K S O N
................................... A s s i s t a n t
C a s h ie r
J.
..............................
C a s h ie r
B. M O N A H A N
A s s is ta n t
P r e s id e n t
Cab Co.
Y o u n k e r B r o s .,
. , ................... P r e s i d e n t ,
Co.
J. W . H U B B E L L
Coal
In c .
Co.
S. G. B A R N A R D
A s s t.
S e c y ., & T r u s t O f fic e r
M. N. B A I R D
..............................
A s s is ta n t
C a s h ie r
R. K. P O P P L E
................................... A s s i s t a n t
C a s h ie r
7
t i fa r E ditar
w ifiT PH1ÜMtf III VJ/ n il 1JA
r w Æ l I M I J1U
JiíLMv
DES MOINES
Oldest Financial Journal West of the Mississippi
The following letters are from
Northwestern Banker readers. Your
views and opinions on any subject
are welcome in this column.
"Created a Sensation"
“ I can’t tell you liow much we appreciate
the wonderful news story you gave us in
the February issue of the N o r t h w e s t e r n
B a n k e r . Our president, Mr. Reynolds, Jr.,
was really thrilled on seeing it and especially
since our bank was featured on the cover
o f your magazine. No doubt about it, it
created quite a sensation around the bank.”
B. F. Conn, Vice President,
First National Bank, Palm
Beach, Florida.
"Resolution Adopted"
“ At a recent Jackson County Bankers
Association meeting the following resolution
was adopted:
“ ‘Whereas, there are many Mutual Sav
ings and Loan Associations, Mutual Savings
Banks, Federal and State Chartered Credit
Unions, Production Credit Associations, Na
tional Farm Loan Associations and various
government corporations organized to pro
vide government capital, as well as many
other forms o f cooperatives now exempt
from the payment o f federal income taxes,
which situation results in unfair advantages
over non-exempt taxpaying bodies:
“ ‘And whereas, the Congress o f the Unit
ed States is now searching for new fields
o f revenue to finance the increased defense
spending on a pay-as you-go basis,
“ ‘Now, therefore, be it resolved, that the
Jackson County Bankers Association go on
record as being opposed to the tax-exempt
status o f said cooperative ventures, and
hereby recommends to the Congress o f the
United States that such exemptions be abol
ished, thereby aiding our free enterprise
system as well as obtaining new sources of
untouched revenue.’
“ I believe that if every county association
in the state would adopt some such resolu
tion, contact their congressmen, then contact
other states it might help push this thing
along.”
Fber V. Flint, Cashier, A n
drew Savings Bank, Andrew,
Iowa.
"Behind the Scenes"
“ Quite often very interesting incidents
happen behind the scenes at any important
convention. I was toastmaster at the large
banquet at the last Iowa bankers convention
(Turn to page 8, please)
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Federal Reserve Bank of St. Louis
IN
THIS APRIL,
•
1951,
56th Year
•
No. 765
ISSUE
EDITORIALS
A cross the Desk from the Publisher........................ ............................. 12, 13
FEATURE ARTICLES
Dear E ditor .........................................................................................................
Conventions ..................... ........ ...... .......................................... ............... .........
F rontispage— Spring Hues ............ ...............................................................
How W e Finance Home Im provem ents......................... John O. E lm er
Lobby Services Our Customers Like..............................K . E. Johnson
“ Farm Clinic” Sponsorship Is a Good Investm ent fo r Banks............
Public Service P rojects Pave W a y fo r R egular Bank Prom otion....
______ ______ ________ ____________ _________________ James C. Shelor
Bankers Convene to Discuss A gricu lture and A ssociation A ffairs...
Bankers Y ou K now — Calvin W. A u ra n d ....................................................
News and View s o f the Banking W orld ......................... B en H aller, Jr.
Independent Bankers to Meet at Mobile, A labam a................................
Bank W om en Division M eeting......................................................................
7
8
15
16
17
18
19
20
21
22
26
30
BONDS AND INVESTMENTS
Turbulence o f M arch......................................................Raym ond T rig ger 31
INSURANCE
Selling Ideas fo r Banker A g en ts................................................................... 35
STATE BANKING NEWS
M innesota News ......................................................................-............ ......— 41
Tw in City N ew s.......................................................................................... 42
South Dakota N ew s..................
45
Sioux Falls N ew s....................................................................................... 45
N orth Dakota N ew s..............................
47
Nebraska News .................................................................................................. 49
Group M eetings Schedule...................................................................
49
Omaha News ......
50
Lincoln News ............ .................................. — .................... ...... -...... —- 54
Iow a News ......
59
Group M eetings Schedule........................................................................ 59
Des Moines News .................................................................................... 64
In the D irectors’ R oom ............................
65
Is Faulty F iling o f T ax Return A lw ays Evidence o f F ra u d ?............
................... ...................... ................ ..... ..Legal Questions and A n sw ers 66
NORTHW ESTERN
BA N K ER
527 Seventh S t., Des Moines 9. Iowa, Telephone 4-8163
R A LPH W . M O ORHEAD
C LIFFO R D DE PUY
A ssociate Publisher
Publisher
M ALCO LM K. FREELAN D
BEN J. H A LLE R . JR.
HEN RY H . H A Y N ES
A sso ciate Editor
A ssociate Editor
Editor
SA D IE E. W A Y
H A Z E L C. STEPH EN SO N
ELIZA B E T H CO LE
A uditor
Circulation Department
A dvertising Assistant
JO S E P H W . FR A N K S
PA U L W . S H O O LL
Field Representative
Field Representative
NEW YORK O F FIC E
Frank P. Syms, Vice President, 505 Fifth A ve ., Suite 1806
MUrray Hill 2-0326
DE PUY PUBLICATIONS: Northwestern Banker, Underwriters Review,
Iowa-Nebraska Bank Directory.
N o rthw e ste rn Banker, A pril, 1951
8
DEAR EDITOR
(Continued from page 7)
FIGURES OF SIGNIFICANCE
O n the theory that the more customers we sell the healthier our
business will be, we attach great significance to the average number
o f banks billed each month. Below are the figures for the past ten years.
1941
1942.
19431944194519461947194819491950-
-4,153
-4,297
-5,049
-5,225
-5,883
-6,606
and there were about 1,000 present with Sec
retary of the Treasury John Snyder as the
speaker.
“ As the program was about to begin, the
head man of the secret service men guarding
the secretary sent word to me to ask those
present to remain seated at the close o f the
banquet until Mr. Snyder had withdrawn. 1
showed this request to Mr. Snyder and he
smiled and said, ‘Forget it, I ’m just one of
you folks.’ I thought this was an interesting
sidelight.”
L. A. Andrew, 1600 Ilinman
Avenue, Evanston, Illinois.
"Excellent Story"
■7,101
■7,418
•7,629
8,104
A t some time during 1950 we made some checks for 10,767 banks.
Our more cautious people feel that the law o f diminishing returns will
soon make itself felt, while our more optimistic eager beavers point
out that there still are 4,008 banks that do not enjoy DeLuxe service.
This writer is no prognosticator but recognizes in such current figures
certain comparisons which make powerful advertising ammunition.
“ The March issue o f the N o r t h w e s t e r n
B a n k e r contains an excellent story on our
Bank Tour Program. I hope that many
Kansas bankers have the opportunity of
seeing this story.
“ Although we attempted to complete the
tours during the fall, most of the local Bank
Tour managers prefer to wait until March
and April. We are now receiving five or
six reports of completed tours every day.”
Carl A. Bowman, Secretary,
Kansas Banlcers Association,
TopeTca, Kansas.
(Turn to page 10, please)
V Deluxe
M anufacturing Plants a t:
N E W Y O R K . P A O L I, C L E V E L A N D , C H IC A G O , K A N S A S C IT Y , ST . P A U L
C O N l E N T IO N S
CHECK PRINTERS
cOne.
WÊÊÊÈÈÈÊÊÊÎÊÊÈËiÊSÊÊÊÊËÊMiÈSÊÊÊËÊÈÊà
Your Lawrence man
offers you this
inventory Survey
Next time inventory figures in a loan application, call
in your Lawrence man. H e’s as near as your telephone.
From his experience with inventories in many lines,
he can determine for you if a given business lends
itself to field warehousing.
W h y not call on his experience?
LA W REN CE SYSTEM
Nationwide Field Warehousing
FACILITATES LOANS AGAIN ST INVENTORY
S A N F R A N C IS C O
C H IC A G O
N EW YO RK
3 7 DRUM M ST.
1 0 0 N . LA S A LL E ST.
7 2 W A L L ST.
O ffic e s In A ll P rin c ip a l C itie s
N o rthw e ste rn Banker, A pril, 1951
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
April 9-10, Annual Convention, Inde
pendent
Bankers
Association,
Mobile, Alabama.
April 22-24, Spring Meeting ABA
Executive Council, French Lick
Springs Hotel, French Lick, Ind.
May 6-9, Assn. Reserve City Bankers,
The Greenbrier, White Sulphur
Springs, West Virginia.
May 7-9, Annual Convention Missouri
Bankers Assn., Kansas City, Hotel
Muehlebach.
May 11-12, Annual Convention South
Dakota
Bankers Assn., Sioux
Falls, Cataract Hotel.
May 25-26, Annual Convention North
Dakota Bankers Assn., Fargo.
June 4-8, American Institute of Bank
ing, Pittsburgh.
June 12-14, Annual Convention Illinois
Bankers Assn., St. Louis, Hotel
Jefferson.
June 13-14, Annual Convention Minne
sota Bankers Assn., Minneapolis,
Hotel Radisson.
June 18-20, Annual Convention Wis
consin Bankers Assn.. Milwaukee,
Hotel Schroeder.
September 30-October 3, Annual Con
vention American Bankers Assn.,
Chicago, Stevens Hotel.
October 11-12, Annual Convention
Nebraska Bankers Assn., Omaha,
Hotel Fontenelle.
October 21-24, Annual Convention
Iowa Bankers Association, Des
Moines, Hotel Fort Des Moines.
November 12-15, Annual Convention
Financial Public Relations Assn.,
Hollywood Beach Hotel, Holly
wood, Florida.
A
M
E
R
th e J = ^ e d e e T r ie c l c a p t iv e
Almost every house was burned, many townspeople were slain, many others
taken captive in the Deerfield massacre of 1704. Rushing forward, stopping,
then rushing on again so that the sound of their feet on the snow might simulate
gusts of wind, French and Indian marauders had approached the sleeping town.
Then climbing on snowdrifts, they leaped over the stockade. Taken by surprise,
the citizens were overwhelmed. Next morning more than a hundred captives were
marched off through the icy wilderness to Canada.
~ b h ly u J lä il ö t u
Among those who suffered greatly was Deerfield’s pastor, the Reverend
John Williams. He and his family were dragged from their beds and taken captive,
his home burned, two of his infant children killed outright. On the first day’s
journey his wife was slain as were others of the weak and aged. In Canada,
Williams and his surviving children were separated. After two years he was
ransomed and later described his ordeal in a book, “ The Redeemed Captive.’
Rejecting calls from other towns, Williams returned to Deerfield where
his parishioners built him the above home to replace the one that was destroyed.
Possibly because of his past bitter experiences it is said Williams insisted that a
secret passage be built around the chimney, running from cellar to attic.
Williams’ eight-year-old daughter Eunice who was adopted by Indians on
arrival in Canada refused to be ransomed and eventually married into the tribe.
Though she paid brief visits to Deerfield in later years, she could not be per
suaded to abandon Indian customs, preferring squaw attire to other clothing and
showing a partiality for sleeping on the floor instead of in a bed.
T om ahaw k-pierced 3” oak
d oor o f S h eld on ’ s tavern may
still he seen in D eerfield .
Parson Williams’ house, where he lived from 1707 to his death in 1729, is
now owned by Deerfield Academy. It is one of twenty pre-Revolutionary homes in
Deerfield — all sturdy reminders of the courageous Massachusetts colonists.
The Home, through its agents and
brokers, is America’s leading
insurance protector of American homes
and the homes of American industry.
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Federal Reserve Bank of St. Louis
»THE HOME»
Home Office: 59 Maiden Lane, New York 8, N. Y.
FIRE
•
AUTOMOBILE
•
MARINE
The Home Indemnity Company, an affiliate, writes Casualty Insurance, Fidelity and Surety Bonds
Copyright 1 9 5 1 . Tlie Home Insurance Company
. 1 d d t •vsses B a n k e r s
Uniquely Qualified
to m e e t y o u r
sp e c ia l n eed s
Nearly 200 bankers o f Kansas
City, Missouri, and Kansas City,
Kansas, attended a meeting of the
Bankers Club o f Kansas City last
month to hear Dwight Michener,
director o f research, Chase National
Bank, New Y ork City. Mr. Michener’ s appearance was sponsored by the
City National Bank and Trust Com
pany o f Kansas City. He discussed
the present trend of inflation in view
o f the nation’ s armament program.
Mr. Michener is shown at right in
the above picture visiting with
James F. McPherson, vice president
o f the City National Bank and presi
dent of the Bankers Club of Kansas
City.
DEAR EDITOR
(Continued from page 8)
Qualified by experience . . . since
1853.
Qualified in size . . . largest bank in
W isconsin; long liigli on the list o f tbe hundred
largest from coast to coast.
Qualified by complete
facilities and unparalleled statewide contacts . . .
uniquely qualified for complete and helpfu l
service that often goes far beyond the ordinary
limits of mere routine efficiency.
B A N K S AND BAN K E R S
DIVISION
George T. Campbell - V ice President
Robert A. Zentner - V ice President
Donald A. H a r p e r ......................
- - - Assistant V ice President
Mark A. Rusch - Assistant Cashier
Northw estern Banker, A pril, 1951
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
First
Wisconsin
N ational
Bank
OF
C H A R T E R No. 6 4
MILWAUKEE
/ Established 1853
Member of the Federal Deposit Insurance Corporation
"Set Out Facts"
“ Your letter to ‘Dear Philip Murray,’
Set out facts that give all some worry,
For when classes organize,
Unless they are wise,
Their demands might raise all costs in a
hurry.
“ Arbitrary power is a dangerous thing,
Tt is the ‘music’ Mr. Stalin does sing.
But laborers, our friends,
Can make some amends,
And let all unfairness take the wing.
“ Your letter, a clear statement o f fact,
Should go out to all, and counteract,
By the strength of the masses,
The organized classes
That selfishly plan a dangerous pact.”
W. 0. Peed, 498 Kensington
Place, Pasadena 3, Cali
fornia.
( E d it o r ’ s N o t e : Mr. Reed is referring
to Publisher Clifford De Puy’s editorial,
“ Dear Philip Murray,” which appeared on
page 8, February, 1951, N o r t h w e s t e r n
B a n k e r .)
Dividend
The board of directors of Guaranty
Trust Company of New York has de
clared a quarterly dividend of $3 per
share on the capital stock of the com
pany for the quarter ending March 31,
1951, payable on April 16, 1951. to
stockholders of record at the close of
business March 15, 1951.
11
SERVICE TO
CORRESPONDENTS
Credit information
Every hour o f the day the facilities o f the Chase are being em ployed
Around the clock mail
pick-up
in the service o f correspondent banks. T h rou gh branches,
Quick collection o f items
representatives and overseas correspondents Chase provides
Participation in
local loans with
correspondent hanks
service o f w orld -w id e scope.
Chase is a banker’s bank, with the personnel experience, and
equipm ent to serve correspondents around the world. . .
around the clock.
Dealers in State and
Municipal Bonds
Execution o f security
orders
Analyses o f investment
portfolios
THE CHASE NATIONAL BANK
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
O F T H E C IT Y O F N EW Y O R K
Member Federal Deposit Insurance Corporation
Safekeeping o f securities
Full foreign services
Many personal services
No rthw estern Banker, A p ril, 1951
A cross Ilie Desk
From llie P11I1I¡slier
j/.
(jJ iJ U icw L J 'td & J x iq h L :
United S tates S enator o f A rkansas.
Your committee investigating the Reconstruc
tion Finance Corporation has brought to “light”
some very interesting “ deals” and “ inside manip
ulations” to secure loans from this government
agency.
But the N orthwestern B anker asks the ques
tion Why should the R.F.C. be continued?
Why
should the R.F.C. be allowed to make further
loans? Why shouldn’t the R.F.C. be liquidated
at once?
The R.F.C. was created at the suggestion of
Herbert Hoover during the depression, to help
banks, railroads, utilities and other worthy en
terprises, which needed financial help, that only
the R.F.C. through government assistance could
furnish. Incidentally, the banks were the first
group to pay back their borrowings which con
sisted primarily of preferred stock in their own
institutions.
The R.F.C. was an emergency piece of legisla
tion—and there is no reason why it should be
continued at this time—it should be dissolved
at the earliest possible moment.
Any legitimate loan can now be made through
the banks of the nation— and if the loan won’t
pass the loaning comittee of a bank or a group
of banks, then the loan should not be accepted
by the R.F.C.
No rthw e ste rn Banker, A p ril, 1951
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Why should the R.F.C. be made the “ dumping
ground” for loans that banks believe are un
sound or are unnecessary?
Why should the taxpayers’ money be poured
down a financial rat hole for loans which are no
good and non-liquidating?
Senator Paul Douglas, Democrat of Illinois,
said sometime ago that the only requisite for an
R.F.C. loan seemed to be that it should be “big
and bad.”
Why should $37,500,000 have been loaned to
the Lustron Corporation when the president of
that firm himself invested only $1,000?
Why should the Texmass Company have been
loaned $10,000,000 only to go into receivership a
few weeks later?
Why should the Kaiser-Frazer Corporation, the
Waltham Watch Company, the Harrington &
Richardson Arms Company and dozens of others
have been granted loans by the R.F.C.?
These firms represented no group upon which
our national welfare depended— and if they did,
and if they were asking for sound loans, then
they could get them from the banks, and if the
loans were unsound then they should not have
been granted at all.
On top of all of this, Senator Fulbright, the
wire pulling and inside politics going on in
Washington to get R.F.C. loans approved, makes
it all the more imperative that the R.F.C. be put
out of business—be liquidated and cease to op
erate. Any other plan under the circumstances
is ASININE.
(b& wu {Rjcu^
TYliU & A.:
V ice P residen t, F ir st N ational Bank in St. Louis.
In the February issue of the N orthwestern
B anker there was an article on “ Why Our Bank
Is Closed on Saturday Afternoons” by T. F.
Jacobson who lives in a town of 1,600 population.
In your bank, Mr. Miller, you started all day
Saturday closings about four and a half years
ago, and as you recently pointed out “Instead
of being criticized for closing Saturdays, custom
ers congratulated us for extending to our em
ployes the same privileges enjoyed by others.
“From the very start we have operated a crew
in our mail and transit departments on Satur
days for the purpose of picking up all incoming
mail and dispatching the out-of-town items for
collection the same day.
“ Strangely enough, we are now handling in
5 working days a heavier volume of business
than we formerly handled in 6. Of course, the
Saturday crew alleviates the situation to a great
extent. But the fact remains that the employes
who are working 5 days are accomplishing more
than they did before Saturday closing. Saturday
13
closing lias enabled tlie bank to retain the services
of employees who would otherwise have resigned,
and this has undoubtedly resulted in the bank
attracting applicants of a higher type.”
It is the belief of the N orthwestern B anker
that the 5-day week in the cities and at least the
5^-day week in the smaller towns is a definite
trend in the modern streamlined banking of to
day. Customers are satisfied, and are transacting
just as much business, if not more, without de
pending on Saturday openings in the cities.
Employees of banks appreciate the shorter
work week which is enjoyed by most industrial
companies in their own cities. Also with the im
provement in modern labor saving machines for
banks, more work can be done quicker.
So the N orthwestern B anker believes, Mr.
Miller, that many banks both large and small,
will continue to follow the example set by your
bank, and by other similar institutions. It is the
trend of the times.
CDsuxa , ¿ d w a J itL
J . J jjJj l :
V ice P resid en t o f C ity N ational Bank and T rust Com
pany, Kansas City, M issouri.
Time saving devices for banks are more im
portant today than ever before, because of a need
for greater speed in bank transactions, as well as
the problem of a shortage of help resulting from
the war situation.
The motion picture which you have prepared
showing the operating methods in smaller banks,
should do much to educate bankers on how they
can improve their internal operations by using
up-to-date labor saving machines in their banks.
In your film you show among others the fol
lowing transactions:
1. An elementary proof system adaptable to
any bank handling 1,000 items or more per
day.
2. Single posting bookkeeping with special em
phasis on good sorting methods and stop pay
ment systems.
3. The time saving of service analysis result
ing from the use of posting machines.
4. A simplified general bookkeeping system in
which the trial balance, daily statement, gen
eral journal and note journal are com
bined into one record with each journal
keyed to the trial balance, and daily state
ment by line numbers in order to facilitate
the training of a new general bookkeeper.
5. Another time saving device which is a wide
carriage typewriter with a front feed platen
for use in issuing official checks of a bank.
This machine enables a bank to combine all
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
of its draft and cashier’s check registers into
one columnized register which is prepared
as a carbon copy of the check itself.
6. The validation of deposit tickets with a win
dow teller machine, which shows that if a
bank had a central proof system, and had
educated its customers to prepare their own
deposit tickets, an average of 20 per cent
additional saving in time could be effected
by the use of window teller machines for vali
dating deposits.
Here is a film which should be shown at group
and regional bank meetings as well as state con
ventions, and the N orthwestern B anker con
gratulates you, Mr. Lyle, on the fine work you
have done in preparing this helpful picture of
bank operations for small banks.
(D
sucV p
J
jd c o
JL
S
o t iI u lM l . :
“ Selling banking to the ladies.”
This might well be the slogan for the bankers
today who are conducting forums, luncheons,
teas and lecture panels to which they have in
vited the women of their communities.
The idea is an excellent one, and the N orth
western B anker has published numerous articles
on these various “ Women’s Finance Forums” held
by banks throughout the country.
Women are the beneficiaries of the estates, of
the life insurance and the stocks and bonds owned
by their husbands, and are large holders of com
mon stock in many of our big and little corpora
tions.
Women are eager for more financial informa
tion as indicated by the tremendous attendance
at all of these forums.
It is a good sign.
When the lectures are over, comments are not
only favorable but enthusiastic, according to
your reports, Mr. Banker, and from the stand
points of tangible business results, long-range
good-will endeavor, and widespread interest cre
ated, the venture is thoroughly worthwhile.
So the N orthwestern B anker suggests that
“ Selling banking to the ladies” will “ pay divi
dends” in more ways than one— and besides, the
ladies, “ God bless ’em,” rule the men, and run
the nation anyway, even if only hv “ remote con
trol.”
No rthw e ste rn Banker, A p ril, 1951
14
Keeping constantly on the
"LOOKOUT*' for the good of
our correspondent customers
keeps the wOUTLOOK"
of our correspondent
business good.
C E NT R A L NATI ONAL BANK
Northw estern Banker, A pril, 1951
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
and T ru st Com pany
Des Moines, Iowa
Member Fed eral Deposit Insurance C o r p o r a t io n
15
Spring Hues
I f you would lik e extra co p ie s o f this p ictu re w e w ill be glad to send them to y o u w ith our com p lim en ts.— The N orth w estern B anker.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
No rthw e ste rn Banker, A p ril, 1951
16
H me W e Finance
Hm ne
M inproee
À
What It Costs to Make FH A Loans
By JOHN O. ELMER
Assistant Vice President
American Trust Company
San Francisco
J O H N O. E L M E R
“ 1000 loans for $600,000 a m onth”
HILE my bank does not do a
large volume business in Title
I, our experience has extended
over a considerable period of time.
We began making FHA Title I loans
soon after the initial legislation was
passed in 1934, and since then have
made about 115,000 loans for slightly
over $50,000,000. Presently, we put on
our books about 1,000 loans for $600,000 a month.
W
Title I loans have a value to us out
of all proportion to their relative share
of our total volume. They were the
key to our entry into the installment
loan field, and they provided us with
a means for learning some of the rudi
ments of the consumer credit business
without parting with our shirt.
loan? We have done some work on it
and offer these figures only as approxi
mations and not as definite and final
conclusions.
We believe it costs about $16 to
place a dealer-originated FHA loan
on the books and carry it for one year.
This is exclusive of the cost of insur
ance. The per month cost of the ac
count beyond that is about 60 cents, so
the 18-month cost figure is $19.60, and
the 24-month figure, $23.20.
Assuming these figures to be right,
and using a net figure of 414 per cent
discount, we then arrive at these
break-even points:
For a 12-month loan—$376
For an 18-month loan—$307
For a 24-month loan—$273
Now, if there is anything wrong
with these figures, it is that they are
too low, because they are based on a
cost study made more than a year ago.
Our efficiency has increased since then,
but so has our basic salary cost; for
the purpose of this discussion, we can
assume that these two factors offset.
There is also room for considerable
variance in costs from bank to bank,
and it is probable that a moderate
sized, self-contained unit is able to
operate more cheaply than we can in
our branch system.
Whether you agree with these fig
ures or not, they at least provide evi
dence that it takes a fair sized Title 1
loan to pay its way and return its
reasonable share of the profits you
expect from your department.
We find that about 48 per cent of
our business is under $250 and 78 per
cent is under $500. This means that a
very high proportion of our loan vol
ume is so small that we either take it
at a loss or realize a very small profit.
-i
Low-profit Business
In seeking a solution as to what to
do with this low profit business, we
can choose between eliminating the
small size loans, raising the rate, sub
stituting a bank plan with a sliding
rate adjusted according to the size of
the loan, or simply depending on a
high enough average loan to produce
an over-all profit.
(Turn to page 27, please)
A
Home improvement loans will al
ways have an important place in the
consumer credit department of banks.
The degree of importance in the case
of any single bank will depend on a
fundamental policy decision as to
whether or not the bank is willing to
campaign aggressively for business
and also to encourage a dealer pro
gram. If the bank is unwilling to
make both of these decisions, then any
hope of substantial volume must be
forgotten, because an aggressive deal
er program will produce three or four
times the volume that can be obtained
under the best conditions from overthe-counter transactions.
What are the relative advantages of
a modernization program based on
FHA Title I as compared to a bank
program that is not insured? In our
bank, we have tried both and presently
are almost exclusively on a Title I
basis.
What does it cost to make an FHA
N o rthw e ste rn Banker, A p r il, 1951
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
“THERE IS nothing more constructive than a modernization loan,” says John
O. Elmer, author o f this article. “ None is o f such direct and lasting benefit to the
community as well as the borrower.” A typical home improvement is pictured
above, which shows an extra upstairs room in the process o f construction.
A
17
■ CONVENIENT— On Saturdays, or on
other days when numerous pay-checks are
cashed, the regular customer is a little
resentful that he, too, must stand in line
to make a deposit. So the Kansas State
Bank established a roving teller system to
accept deposits only, which has resulted
in much faster service. ------------------------
L o b b y Services
O ur t'usU uucrs L ib e
Highchairs for Children, and Lobby
Tellers for the Depositor Who Is in a Hurry
Written Especially for The NO R TH WES TERN BANKER
By K. E. JOHNSON, Assistant Cashier
The Kansas State Bank, Wichita
HE service we most recently in
augurated is a high chair service.
We have placed high chairs be
tween our teller’s windows in order
that mothers who so desire may place
their child in the chair while trans
acting their business. (See cover
photo.)
Another service which we have had
in operation for several years is our
roving teller. After studying our
lobby traffic problem we found that
many people desired only to deposit
their pay check. By using our rov
ing teller we are able to take the
teller to these people, thus giving
them faster service and the custom
ers who must get to the teller’s win
dow can do so in a shorter length of
time. We use this service particu
larly on Saturdays and when the lobby
becomes congested. Our roving teller
has taken as high as 300 deposits on
a Saturday morning.
T
We also have in operation a weekly
employes’ meeting. At these meetings
we discuss problems or ideas anyone
may have. Instruction is given on
customer courtesy, as well as informa
tion about the bank and its objectives
so our employes will be better in
formed and feel they are part of a
team. Occasionally, we have outside
speakers at these meetings, training
films of a public relations nature, and
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Federal Reserve Bank of St. Louis
from time to time our own employes
conduct the meetings.
Free coffee and breakfast rolls are
provided for our employes at these
meetings, as well as every morning
between the hours of 8:00 and 10:00,
supervised by a maid. This has an
indirect selling effect, in that it helps
build the morale of our employes.
They become better acquainted during
these brief periods over a cup of
coffee and this has a tendency to cre
ate more harmonious operations with
in the bank.
One of our employes recently sug
gested that because our tellers cash
pay roll checks for a number of non-
ON TH E COVER
r s . s . i'.
M
M cK i n n e y , wife
of the vice president of the
Kansas State Bank of Wichita, is
shown with their daughter, Mar
garet, demonstrating one of the
new high chairs placed in the
bank’s lobby. The chairs are to
aid mothers who visit the bank
to transact business. The chairs
have a toy attached to entertain
the youngsters while their moth
ers complete their banking busi
ness for the family.
customers, they have an opportunity
to observe those who feel would be
good customers. As a follow-through
on this suggestion, we are sending let
ters to the people designated by the
tellers, inviting them to open an ac
count with us.
The following is how the letter
reads:
Hello, M r .............................. :
“I cannot resist the impulse to write
you this letter, because after you left
the bank the other day, I suddenly
realized how very nice it woidd be
to have you as a Kansas State Bank
customer.
"A complete individualized service
awaits you at Kansas State, and I be
lieve you will be especially interested
in our ‘bank by mail’ service during
the present time when you are no
doubt working long hours.
“ You may open your account by mail
if you so desire, or ivhen you come
to the bank, hand the enclosed card
to one of our ‘new accounts’ officers.
This will serve to inform them I per
sonally invited you to join us.”
The card enclosed with the letter
is the average sized business card,
with the bank insignia centered in
the card dimensions. The teller writ
ing the letter merely signs his or her
name in ink in the lower right-hand
corner.—The End.
N o rthw e ste rn Banker, A p ril, 1951
■ CLINIC SPEAKERS— The host and four
speakers who addressed the Farm Clinic
sponsored in Tekaiuah, Nebraska, last
month by the First National Bank o f Tekamah are pictured (le ft) as they visit in
formally before starting the afternoon ses
sion. L eft to right are: Robert I. Stout,
president o f the First National of Tekamah; Dr. L. E. Hanson, professor o f animal
husbandry, college o f agriculture, Univer
sity of Minnesota, Minneapolis; E. H.
Dunaway (standing), field service office
manager, Social Security Administration,
Omaha; Dr. Randall T. Klemme, vice presi
dent, Oklahoma A. & M., Stillwater, Okla
homa, and Howard J. Grämlich, general
agricultural agent, Chicago and Northwest^ --------------- ern Railway System, Chicago.
-V
-V
'Farm 1 U n ir” S pon sorsh ip Is a
Iwaad la r r s tm r a f far Itaalis
First National of Tekamah, Nebraska, Is Host at
Farm Meeting for More Than 600 Farmers
By BEN HALLER, JR.
Associate Editor
The Northwestern Banker
V
A
IF THERE are any bankers still wonI dering about the value of bank' sponsored farm meetings, then the
experience of Robert I. Stout, presi
dent of the First National Bank in
Tekamah. Nebraska, should help con
vince them that such an undertaking
is well worth while.
Last month more than 600 farmers
thronged into Tekamah’s new city
auditorium for an all-day meeting to
hear experts report the latest develop
ments in farming and farm operation.
For the staff of the First National
Bank it was the climax of several
months of planning. For the speak
ers it was an opportunity to have
direct contact with the producers of
America’s greatest wealth. And for
the farmers of Burt county it was the
first opportunity they have had for
such a get-together to discuss prob
lems affecting their daily operations.
County Seat
Noting the success with which oth
er banks had met in sponsoring a
“ Farm Clinic,” Mr. Stout determined
last fall to bring a similar program
to Tekamah, the county seat, since
no other meeting of this type was
available for his customers and other
farm operators.
He lined up four speakers on impor
tant subjects, contracted for use of
the new city auditorium, made ar
No rthw e ste rn Banker, A pril, 1951
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
rangements to have a hot meal served
at noon, then sent out 900 to 1,000 in
vitations. A sunny, dry day brought
out a crowd of more than 600 persons.
Needless to say, Mr. Stout and his
associates were well pleased with the
response and to the reception given
the speakers. The program started
on time, at 10:15 a. m., and ran exactly
on schedule from then until comple
tion of the meeting at 3:30 p. m.
Farm Social Security
The first speaker on the program
was E. H. Dunaway, manager of the
Omaha field office for the Social Se
curity Administration. Mr. Dunaway
explained the new Social Security
law, which now includes farm em
ployes. He pointed out that to be cov
ered under the new provisions of the
act, farm employes must work for a
90-day “qualifying quarter” for the
same employer. Income during this
period is not taxable, but at the end
of the second quarter (90-day period)
the farm owner must deduct IV2 per
cent of wages paid, provided the sal
ary was $50 a month or more, then
match it with another IV2 per cent
from his own funds, the same proce
dure followed by other employers.
The points emphasized in Mr. Dun
away’s talk are outlined in a pam
phlet identified as “Circular A, Janu
ary, 1951” and entitled “Agricultural
Employer’s S o c i a l Security Tax
Guide.” This is issued by the Bureau
of Interna] Revenue of the United
States Treasury Department and is an
excellent and handy guide for bankers
with farm customers.
Farm Outlook Good
The “ Immediate and Long-Run Out
look for Agriculture” was discussed
by Dr. Randall T. Klemme, vice presi
dent of Oklahoma A. & M., Stillwater,
Oklahoma. Dr. Klemme said the short
term outlook for farm income is ex
cellent, based on a high level of em
ployment which gives more people an
opportunity to buy farm products.
Regarding the long-term outlook, Dr.
Klemme prefaced his remarks by
pointing out that in the past 20 years
there has been a shift in dietary hab
its of people from heavy consumption
of pork to a greater consumption now
of beef; in addition, the production of
cattle (including dairy cattle and beef
of all kinds) is not keeping pace with
the human birth rate, consequently
there won’t be any surplus of beef
during the next 30 years or more, even
for our own population. The ratio
today is about .6 of one cow unit per
100 people in the U. S., which is al
most the lowest point in the past 40
years.
In view of the above facts, Dr.
(Turn to page 53, please)
A
19
P abtie Service P rojects P o re
W a y for
H eya ia r Hank P rom otion
Two Current Programs Gaining
County and Statewide Good Will
W ritten E specially fo r
The N O R T H W E S T E R N B A N K E R
By JAMES C. SHELOR
Vice President
The Fulton National Bank
Atlanta, Georgia
N AN effort to bring the services of
the Fulton National Bank to the at
tention of people in Atlanta and
Fulton county, we strive continuously
to use those mediums which have hu
man interest appeal and are of bene
fit to the public. We feel that our
bank receives an abundance of good
will from this type of promotion,
which creates a ready receptiveness
by the public to our carefully planned
campaigns conducted on behalf of our
various banking departments.
The two main programs we are pro
moting at the present time are the
“ Pine Tree Planting Program” and
“ High School Savings Banks,” and
typical of the advertising campaigns
to sell a specific bank service is our
“ Life Insured Savings Plan.”
1
have brought forth commendation
from hundreds of Georgia’s business
and agricultural leaders, as well as
scores of others throughout the na
tion. The railroads have given splen
did cooperation on this project and
many friends have been made over
Georgia for the Fulton, both among
the railroads and the banks.
H I G H SCHOOL S A V I N G S
* BANKS. Last year the Fulton
National opened six high school sav
ings banks, which are operated as
a student-owned enterprise. Our bank
volunteered to help each school char
ter its own bank and this plan has
proved so successful that a total of
18 banks are now in operation in the
high schools of Atlanta and Fulton
county.
Each bank is open one day a week
at the school and is operated by three
students who are paid from the earn(Turn to page 38, please)
PINE TREE PLANTING PRO» GRAM. This reforestation project
began under the leadership of Erie
Cocke, president of the Fulton Na
tional, who enlisted the cooperation of
forestry leaders, railroad officials and
Georgia banks in increasing the state’s
forestry production. The object of
this five-year program is to increase
the planting of pine seedlings from
the present 35 million a year to more
than 100 million annually.
To initiate the program, the Fulton
National Bank sponsored a luncheon
meeting for all interested forestry and
railroad leaders. The response was
enthusiastic. Fulton National officers,
in conjunction with representatives of
the State Forestry Commission, The
University Extension Service, The U.
S. Forestry Service, the Soil Conserva
tion Agency and the railroads, con
tacted more than 240 banks through
out Georgia which have endorsed this
program and purchased tree planting
machines for free use by farmers in
their communities.
About 157 tree planters have been
bought by community banks in Geor
gia, some jointly, and these are loaned
to farmers without charge. Results
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Federal Reserve Bank of St. Louis
PLANTING o f pine tree seedlings is a statewide civic project initiated in
Georgia by the Fulton National Bank of Atlanta. In the above picture Erie Cocke
(le ft ), president, and J. C. Shelor (center), vice president, both of the Fulton
National, are given a demonstration of the tree planting machine which their bank
purchased for free use by the farmers of Fulton County.
No rthw estern Banker, A pril, 1951
20
-V
Hankers Convent* to Hisenss
At/rien!tnre and Association Affairs
A
Central States Conference and A. B. A. Agricultural Commission
Hold Annual Meetings in Des Moines
WO bankers’ meetings of national
importance w e r e held in Des
Moines late last month, the annual
executive session of the Agricultural
Commission of the American Bankers
Association and the 40th annual meet
ing of the Central States Conference,
which includes officers of state bank
ers’ associations from 16 midwest
states.
T
Central States Conference
CENTRAL STATES CONFERENCE— These men attended the Central States
Conference in Des Moines. From left to right they are, seated, Carl E. Bahmeier,
Jr., executive secretary and treasurer of the South Dakota Bankers Association,
Huron; J. H. Pullman, president o f the Iowa Bankers Association, and vice presi
dent o f the Fremont County Savings Bank, Sidney, Iowa, and William H. Mitten,
vice president o f the Nebraska Bankers Association, and president o f the Stephens
National Bank, Fremont, Nebraska.
Standing, Earl H. Wilkins, president of the Nebraska Bankers Association and
president, Geneva State Bank, Geneva, and Carl G. Swanson, secretary o f the
Nebraska Bankers Association, Omaha, and the newly elected first vice president
o f the Central States Conference.
With the organization founded in
1912 and its area, including what is
termed the north central Mississippi
Valley states, states represented in the
Central States Conference are Arkan
sas, Colorado, Illinois, Indiana, Iowa,
Kansas, Kentucky, Michigan, Minne
sota, Missouri, Nebraska, North Da
kota, Ohio, Oklahoma, South Dakota,
and Wisconsin.
While all officers of associations of
the states named above are members,
the Central States Conference elects
its official staff from secretaries of
these states. New officers of the Con
ference named at the Des Moines
meeting are James C. Scarboro, Colo
rado, president; Carl Swanson, Ne
braska, first vice president; Robert E.
Pye, Minnesota, second vice president,
and Jeff Burnett, Arkansas, secretary
and treasurer.
Agricultural Commission
AGRICULTURAL COMMISSION— Here are members of the American Bankers
Association Agricultural Commission, and their guests, suspending their discussion
for a moment while they have their picture taken. Seated at the head o f the table,
facing the camera, lower right, is W. W. Campbell, chairman o f the commission,
and president o f the National Bank of Eastern Arkansas, Forrest City.
The Agricultural Commission of the
American Bankers Association is one
of the association’s working groups,
and this year is headed by W. W.
Campbell, president, National Bank
Eastern Arkansas, Forrest City, as
chairman. It is composed of repre
sentative bankers and educators cov
ering every part of the United States.
Its work is the promotion of construc
tive relationships between banking
and agriculture to advance the wel
fare of farm communities.
Members of the Agricultural Com
mission at the meeting included: W.
W. Campbell, president of the National
Bank of Eastern Arkansas, Forrest
City, Arkansas, chairman; J. H. Bloedorn, president, Farmers State Bank,
Fort Morgan, Colorado; Hubert P.
Burdette, president, First National
Bank, Mount Airy, Maryland; Frank
H. Coward, executive vice president,
(Turn to page 26, please)
4
V
-<
N o rth w e ste rn Banker, A p ril, 1951
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
T
21
B a n k ers You K note
Calvin W .
. I urn nil
President
Iowa-Des Moines National Bank
Des Moines, Iowa
. . . an extraordinary combination of talents
H E N Calvin W . Aurand assumed
the presidency of the Iowa-Des
Moines National Bank in January of
this year, he brought with him an
extraordinary combination of talents
— a detailed knowledge of every bank
ing operation, an understanding and
appreciation of human relationships,
and a rare amount of executive abil
ity.
W
Among his associates and wide ac
quaintanceship of banker friends, Mr.
Aurand is recognized as a real bank
er’s banker. Upon graduation from
college at the age of 21, he selected
the field of banking as his vocation
and wasted no time in starting to learn
all he could about the business. At
the age of 46, just 25 years later, his
never-ceasing energy, tireless ambi
tion and splendid record of accom
plishment resulted in his election as
president of Iowa’s largest bank, the
Iowa-Des Moines National, which has
deposits in excess of $122,000,000.
Mr. Aurand is celebrating his 47tli
birthday this month. He was born
April 15, 1904, in Minneapolis. He
received all his formal education in
that city, graduating from the Uni
versity of Minnesota in 1925 with a
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Federal Reserve Bank of St. Louis
Bachelor of Arts degree. W hile at
Minnesota he joined Alpha Delta Phi
fraternity.
In September of that year he started
work with the Midland National Bank
of Minneapolis in the credit depart
ment. He worked in various divisions
of the bank and was elected assistant
cashier in 1933. He became a vice
president in 1938, then in 1941 was
selected as vice president and treas
urer of the Northwest Bancorporation
of Minneapolis, with which Midland
National and the Iowa-Des Moines Na
tional are affiliated.
His election as a Bancorporation
officer was in recognition of his exten
sive knowledge of detailed operations
in the various bank departments. In
addition, his capacity for mutual un
derstanding with employes and cus
tomers filled another essential re
quirement of his new job. His four
years with the Bancorporation af
forded him an unusual opportunity
for close association with the activities
of a lax-ge number of banks of all sizes.
This expei’ience gave him a much
broader grasp of bank management
and problems at all levels and pro
vided a good polish to his fine execu
tive ability.
In 1945 he returned to the Midland
National as a vice president and di
rector. He remained with that bank
until becoming president of the IowaDes Moines National early this year,
succeeding Herbert L. Horton, who
continues in an active capacity as
chairman of the board of directors.
Mr. Aurand has been active for
ixxany years in Minneapolis Com
munity Chest campaigns, serving as
co-general chairman one year. He is
a past president of the Minneapolis
Health Action Committee, a voluntary
organization of citizens interested in
public health. He was also a director
of Associated Industries, Incorpor
ated, an organization which repre
sents employers, and on many occa
sions handles wage negotiations for
members.
Mr. Aurand was married September
8, 1928, to Eleanor Kingman. They
have three children, Calvin W ., Jr.,
21, Elizabeth K ., 18, and Benjamin
K ., 10.
When Mr. Aurand finds time for a
little relaxation he lias three hobbies
to enjoy— hunting, tennis or garden
ing. His political affiliation is Re
publican.
N o rth w e ste rn Banker, A pril, 1951
N ew s
anti
OF THE BANKING WORLD
By BEN H A L L E R , JR.. A ss o c iate Ed itor
T LONG last we’ve discovered
the origin of the 40-hour week.
Howard Gramlich of Chicago,
general agricultural agent for the Chi
cago and Northwestern, says, “ It all
started with Robinson Crusoe. He had
all his work done by Friday!”
A
* * *
The N o r t h w e s t e r n B a n k e r passes
along to the banking world the chal
lenge of the Farmers Bank of Clatonia,
gow, K.G., K.T., who is bank chair
man, penned a verbal hat-doffing to
the United States in which he said:
“The speed and extent of the progress
recorded thus far must be ascribed
very largely to the immense contribu
tion made, directly or indirectly, by
the United States of America. It has
indeed been a political miracle of mod
ern times that the United States, re
versing her long-standing policy, has
accepted with astonishing prompti
tude, and expressed in munificent and
decisive action, the responsibilities of
leadership in world affairs. Let us
look for a moment at the variety and
scale of the material contribution made
by the United States to economic re
covery, particularly in the war-rav
aged countries of western Europe.”
This literary “ moment” took up
quite a little space, naturally, then
Chairman Linlithgow said Britishers
can’t expect such aid indefinitely for
it “would be to cultivate an enervating
and chronically unhealthy habit of
mind.” But he inserts a hedge clause
by adding, “Equally, however, to pre
Mrs. Louise Steinmeyer poses pa
tiently for the cameraman before
cutting the cake on her 100th birth
day anniversary. The little fellow
with admiring eyes is Martin
Laurenze, a great grandson.
Nebraska. E. J. Chittenden, Cashier,
sent us a picture of Mrs. Louise Steinmeyer, who is shown cutting a cake
on her 100th birthday. Mrs. Stein
meyer is a director of the Farmers
Bank and is the widow of William
Steinmeyer, who helped organize the
bank 55 years ago, in 1896.
Mr. Chittenden believes Mrs. Stein
meyer is the oldest living bank direc
tor in the United States, possibly the
world. Her son, C. William Stein
meyer, is president of the bank.
Mrs. Steinmeyer has lived in Cla
tonia since she was 17 years old. She
assumed her husband’s position as
bank director when he died in 1911
and still has a very keen memory,
stating that she “can remember when
gold coins were common and when
there were no white pennies to annoy
bankers making change.”
sume the sudden cessation of Ameri
can aid would be to envisage the risk
of collapse of the painfully rebuilt
structure of economic and financial re
lations.”
The Lincoln Telephone and Tele
graph Company claimed recently that
shortly after the new “Time of Day”
service started at the National Bank
of Commerce in Lincoln, Nebraska
(page 33, F e b ru a ry N orthwestern
B anker), it was noted one night that
one of the lines into the Audichron
machine had been busy for a half hour.
A Lincoln switchman plugged his
“goat” into the line and heard a slight
ly inebriated gentleman trying to
make a date with the recorded female
voice giving the correct time.
* * *
Most Hon. The Marquess of Linlith
Health Service scheme came into oper
No rthw e ste rn Banker, A pril, 1951
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
T h e y ’ ve finally identified “The
It’s an Alaska King Crab
sent to Joseph Ashley, assistant man
ager of the Mosler Safe Company
wholesale division, by A. R. Burchandt of The Arctic Office Machine
Company in Anchorage. Alaska.
When Mr. Ashley said perplexedly,
“Now that I’ve got it, how do I cook
it?” he was not greeted with a “Get
out of here with that boom, boom,
boom” by his wife, as the song lyrics
state. On the contrary, it happens
that Mrs. Ashley is an old hand at
cooking Alaska King Crabs, reports it
a real delicacy and wonderful as a
salad.
The Alaska King Crab is a tough
Thing”
* * *
In
his annual report on 1950 operations
of the Midland Bank Limited, The
* *
patients assigned to him. for which
the British government paid him $3.40
per year. The maximum number is
4,000, which sets a doctor’s maximum
salary as general practitioner at $13,600. He reports that it is now known
as “three-minute medicine,” for that’s
about all the time that can be devoted
to each patient.
The Midland Bank report shows net
profit for 1950 amounted to 1,987,320
pounds ($5,564,496) of which 1,333,958
pounds ($3,735,082) were paid in divi
dends at the rate of 16 per cent for
the year.
Many bankers, doctors, businessmen
and other groups of Americans have
heard l)r. Ralph .1. Gam pell deliver
his talk, “ Socialized Medicine As I
Saw It in England.” In this talk Dr.
Gampell, who finally left England and
moved to the U. S., states, “The British
Hang out the flag department:
ation as the result of one of the most
elegant pieces of economic blackmail
that it will ever be my fortune to suf
fer.” Dr. Gampell says he had 3,200
Mosler Safe Company’s Joseph
Ashley measures “ The Thing” — an
Alaska K ing Crab.
nut to crack, but its shell at least can
be broken. Which is more than can
be said about Mosler safes — they
couldn’t even be broken open when
they were atom-bombed at Hiroshima!
* * *
Clarence Rye, former North wood,
Iowa banker, and for the past several
(Turn to page 36, please)
23
Meet
Our
New
Transit
Manager
Robert W. Priborsky
W e ’ d like you all to know Bob Priborsky, our Transit Manager.
H e looks young, but on the day this picture was taken he was celebrating
bis 19th anniversary with the bank.
H e ’ s doing a fine job, and we’ re proud of him.
Transit Department, too.
W e re proud of the
Speed, accuracy, direct sending— those are
our trademarks. W e d like you to meet Bob and visit the Transit Depart
ment the next time you’re in Omaha.
M EMBER F E D E R A L DEPO SIT IN SU R A N C E C O R P O R A T IO N
The Omaha National Bank
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
FA RN A M
AT
SEVENTEENTH
No rthw e ste rn Banker, A p ril, 1951
24
Il 7om en A tte n d Financial F oru m o f
C en tra l N a tion a l fían h in fíe s M o in e s
WOMEN’S FORUM— Pictured above are the 250 women who
attended the first session o f a series of Women’ s Forum meetings
sponsored by the Central National Bank & Trust Company, of
Des Moines. With a morning and evening session scheduled for
one day a week, for a six-weeks period, more than 400 women
—
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are registered for the financial planning program. The response
to the first meeting was very enthusiastic.
Noel T. Robinson, vice president and trust officer o f the
Central National Bank, and Walter L. Stewart, vice chairman
o f the board, presided at this first session.
BUSINESS
If
1
Financing farm customers is sound business for your bank
. . . and for the nation. When you provide farm banking
services, you are helping to create farm income and to
maintain the production of essential foodstuffs and materials.
__
American National officers are experienced in
helping agricultural banks. They are prepared to render
A
prompt decisions on participations in livestock, dairy
herd and crop loans. They can be of constructive assistance
to you in getting and keeping a profitable volume of
4
agricultural business.
You may gain by talking with us about this service.
Come in or write us at any time.
K
A m
e r i c a n
a n d
T ru st
V a fv o n < i/ B a n k
C o m p a n y
o f
C h ic a g o
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION
LA SA LLE S T R E E T AT W A S H IN G T O N , C H IC A G O 90
N orthw estern Banker, A p ril, 1951
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
T'
25
Local industries are calling upon their hanks for help in solving
an ever-widening variety o f financing problems.
How to keep abreast o f the needs
o f your custom ers
• Today, your customers are confronting
an ever-increasing number of problems . . .
and its complete range of correspondent
services of exceptional value today. Helping
and many of these problems challenge you as
correspondent banks to build more income-
never before. For as banks are called upon
producing business is one of Irving Trust’s
to counsel and serve in new and widening
important jobs.
fields, they must equip themselves to do so.
No doubt you have heard the saying,
"Y o u can always bank on Irving service.”
Supplementing their own experience and
facilities, many banks find Irving Trust’s
specialized knowledge in various industries
IR V IN G
W e are confident that any Irving corres
pondent will tell you that.
T R U S T
ONE W ALL S T R E E T
C O M P A N Y
• NEW Y O R K 1 5 , N. Y.
Chairman of the Board
R ichard H. W est , President
Domestic Banking Division, N olan H a r r ig a n , Senior I ice President in Charge
W illiam N . E nstrom ,
Serving the West
W
illiam
F eic k , J
ice President
Capital Funds over $118,000,000
M e m b e r F e d e r a i. D e p o s it I a s i r a n c e C o r p o r a t io n
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
H . M iller L a w d e r ,
Assistant Vice President
Total Resources over $1,200,000,000
M e m b e r o f t h e n e w c o a s t -t o -c o a s t
"BANK VÎTR E ”
S ystem
N o rth w e ste rn Banker, A p r il, 1951
V
26
fii#/#1pen den t R ankers to
M e e t at M ob ile. Alabam a
Members Will Convene at Admiral Semmes Hotel
As 17th National Convention Gets Underway
A
MONDAY, APRIL 9
9:00 Registration
Mezzanine Floor
12:00 Luncheon for the ladies of the convention party at Battle House
Y
Hall Room
B E N D u B O IS
President, F irst State Bank
Sauk Centre, M innesota
Secretary, Independent Bankers A ss’n
2:00 General Meeting of the Convention—C. R. Bell, president, Independent
Bankers Association
2:15 Address of Welcome—Ernest M. Megginson, Mayor, Mobile, Alabama
2:30 Address—C. R. Bell, president, IB A
3:0'J “Alabama”—James B. Allen, Lieutenant Governor of Alabama
3:30 “Let’s Take a Straight Look at the Future”—John Nuveen, John Nuveen
& Company, Investment Bankers
4:15 “ Independent Bankers’ Responsibility”—J. Leonard Townsend, solicitor,
Federal Reserve Board
5:00 Social Hour
6:30 Buffet Dinner
9:00 Dancing
TUESDAY, APRIL 10
A
Hall Room
10:00 “ Integrity, Are You Protecting This Risk Asset?”—Dr. Edison H. Cra
mer, Division of Research and Statistics, Federal Deposit Insurance
Corporation
10:45 “ Independent Banking”—James S. Peters, president, Bank of Manchester,
Georgia, and Member Executive Council IBA
11:15 General Discussion of Association Affairs
12:30 Luncheon for the ladies at Mobile Country Club
2:00 Report of Committees, Election of Officers
5:00 Social Hour
6:00 Banquet—C. R. Bell, ToastmasterAddress—John W. Snyder, Secretary of the Treasury
C H A R L E S C. R IE G E R
V ic e president
M arquette N ational, M inn eapolis
Treasurer, Independent Bankers A ss’ n
BANKERS CONVENE
New Y ork--64 Wall Street
550
N o rthw e ste rn Banker, April, 1951
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Chicago •-27 S. La Salle Street
San Francisco --333 California Street
&uuid<z •
Resources Exceed
\l Billion
(Continued from page 20)
Lapeer Savings Bank, Lapeer, Michi
gan; Frank H. Jenne, vice president
and trust officer, Hunterdon County
National Bank, Flemington, New Jer
sey: V. S. Marett, president, Gonzales
State Bank, Gonzales, Texas; Frank
R. McGeoy, Jr., president, Bank of
Greenwood, Greenwood, Mississippi;
Burr S. Swezey, president, Lafayette
National Bank, Lafayette, Indiana;
Jesse W. Tapp, vice president, Bank
of America N.T. & S.A., San Francisco,
California; John N. Thomson, presi
dent, Bank of Centerville, Centerville,
South Dakota, and George G. Ware,
president, First National Bank. Lees
burg, Florida.—The End.
4
-V
l'in mu-in ff H o m e Im p r o v em e n ts
(Continued from page 16)
The latter course is the line of least except for insurance charges, are near
resistance, but the proper solution ly the same as for FHA loans. To
probably lies either in discouraging this cost we must add a figure suffi
the smaller loans or in adopting a bank cient to create ample reserves for
plan with adjusted rates. I have heard credit losses. It is not easy to deter
that some institutions use their own mine what this should be. On the
plan on loans up to $500 and use Title face of it, net losses on this business
(after recoveries resulting from legal
I over that to accomplish the dual
purpose of better yield on smaller action and the foreclosure of security)
loans and better protection against should not exceed the rate of losses
credit losses on larger items. However, on personal loans. With us that has
we have never tried this approach; and been .301 per cent of volume over a
it would seem to me that it could re 16-year period. But this relationship
sult in some confusion and customer
dissatisfaction.
It is unfortunate that the Federal
Housing Administration cannot work
out a more equitable rate basis by set
ting a higher rate on the smaller loans
and a lower rate on larger loans. How
ever, in view of the opinions expressed
in Congress prior to the renewal of
Title I, there is obviously little hope
that anything can be done in this di
rection. The large loan will have to
keep on paying its own way plus the
way of the little ones.
will not stand up because of the
much longer maturities of moderniza
tion loans. Unlike purchase obliga
tions on automobiles, default is nearly
as frequent in the latter stages of
these loans as in early stages.
Neither can your provision for losses
be related to your Title I claim ratio.
This is a gross figure and the FHA has
consistently effected 50 per cent or
better in recoveries on claims.
Because we operate in an area in
which there has been great instability
and growth of population in recent
years, we would want about IV2 per
cent per annum for a reserve for
Finance Charges
What finance charges do we need
to make a bank plan work? Although
there would be some economies in re
duced accounting costs, the basic costs,
Assures Even More Rapid Collection of Your Important Sendings
1
P e r s o n a liz e d
p
JSCorrespondent |
■ | B a n k J e r v ic e J
B a s e d on a P o lic y
of Cooperation
— not
Competition
Under the direction of officials with
years of service in this field, assur
ing a knowledge of requirements
and valuable assistance.
nillie National
I nk as . Tursr
1MPANY
of
Established
IA IN O F F IC E ;
IA
vr
lem b er:
new
These items a d d re sse d to our sp e cial P. O . D raw e r 3 6 0 , a re
received s e p a ra te ly from our bulk m ail, get sp ecial attention,
handling and routing b y our trained personnel at our
“ Fast S e rv ic e ” desk and a re sp e e d e d on their w a y.
Just ad d re ss a s e p a ra te cash or collection letter and send it
to P. O . D ra w e r 3 6 0 , M ain Post O ffice , St. Louis. S p e cia l
prep rinted “ Fast S e rv ic e ” envelopes, re g u la r or A ir M ail, will g la d ly
be sent you upon request. Let us know to d a y how m any you require.
Whether you are a correspondent or not, it will pay you to try
“ Fast Service,” another example of the many advantages of
doing business with Mercantile-Commerce in St. Louis.
-to
MERCANTILE
1908
37 B ro a d St.
York Clearing House
Federal Deposit
Asso«W»’„ corporal
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
W ith some 3 0 0 mail trains and planes a rrivin g and d e p artin g
d a ily , plus frequent mail pick-ups, M ercan tile-Co m m erce’s d a y
and night, seven d a y s a w eek transit and collection service has
a lw a y s been fast. Now we offer even better, faster service
for your im portant collections, la rg e or unusual items, bill of
la d in g d rafts, ra ilro a d d rafts, gra in d rafts, etc.
__
Bank, and
ST. LOUIS 1
COMMERCE
Trust Company
M IS S O U R I
MEMBER FEDERAL DEPO SIT
IN SU RA N CE CO R PO RA TIO N
N o rthw e ste rn Banker, A p ril, 1951
28
losses. We would prefer to put this
amount, plus a 1 per cent flat hold
back, into a reserve account for each
dealer to give him an incentive for
properly screening and servicing the
paper he sells to us.
Beginning then with a basic cost
of $16, which was the FHA figure,
plus IV2 per cent for a reserve for
losses, we need a rate of 17% per cent
for a one-year loan of $100. At $250,
however, 7% per cent is enough, and
at $350, 6 per cent covers these costs.
But we cannot charge a $100 loan $17
even though we can justify it as a
cost. So here is a suggested schedule
of charges per $100:
1. $8 discount loans to $250.
2. $7 discount on loans between $250
and $500.
3. $6 discount on loans between $500
and $1,000.
4. $5 discount on loans between
$1,000 and $2,000.
5. A $10 minimum charge wherever
the discount rate or term of the loan
produces less than that amount.
You may challenge the necessity for
the provision of 1% per cent per an
num for credit losses. It is true that
the FHA with a premium rate of %
per cent per annum has been able to
pay all claims and administrative ex
penses and to show a profit as well.
But if you intend to handle a large
volume of unsecured dealer paper
For prompt, efficient service on
all items and collections, many midwestern bankers use the specialized
facilities of the Drovers National
Bank. These bankers have found
that the highly trained staff of the
Drovers does speed collections.
They appreciate the immediate
personal attention that each out-ofthe-ordinary item receives from an
experienced executive.
Your Inquiry Will Receive Prompt Attention
DROVERS NATIONAL BANK
DROVERS TRUST & SAVINGS BANK
UNI ON
STOCK
YARDS,
CHICAGO
Members, Federal Deposit Insurance Corporation
N o rth w e ste rn Banker, A p ril, 1951
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
without the power and prestige of the
Federal government behind you, both
as a deterrent to fraud and as an
effective collection force, then you
should have this much reserve. Good
experience may later prove it feasible
to reduce this charge.
Dealer Program
Within the last three years we ex
perimented with two dealers on a
bank modernization plan. Both pro
duced volume approximating $500,000.
In each instance we had a consider
able proportion of business in areas
beyond that covered by our branch
system, thus making collections more
difficult. With one dealer, losses were
well within a figure that would be
covered by a % per cent reserve.
On the other, the evidence is that we
will need the full 1% per cent per
annum to finally liquidate the account.
This is not a broad enough experience
to be conclusive, but the variation does
lead me to my next point.
If you have determined to build
volume through a dealer program,
whether by Title I or by a bank plan,
you must exercise great care in the
selection of your dealers. Unfortu
nately, a modernization loan program
is very susceptible to abuse by un
scrupulous dealers, and the frequency
of such abuses is much too high. The
FHA seeks constantly to reduce this
bad experience by various dealer
guides and other publications, by the
black listing of dealers and salesmen
and by the activities of their fieldmen.
But the real responsibility for bad
dealer practices still rests with us.
We can reduce bad dealer experience
by thorough investigation of each new
dealer. The investigation must cover
his business history, his financial re
sponsibility, and his professional abil
ity. This, plus routine spot checks
of job performance, are, of course,
required by FHA.
At the first sign of trouble in the
form of complaints from borrowers
about jobs poorly done, we must get
the facts about the case. If it reveals
poor workmanship, overcharging, un
kept promises, or any of the bonus
or model home dodges that are so
frequently tried, we should make ev
ery effort to stop the practices or
correct them, even though it means
losing the account in the process. Is
this a realistic attitude to take? If
you don’t, you become a party to
future abuses, and you can’t escape
that conclusion. In most states the
control of bad practices, where they
fall short of obvious fraud, is beyond
the regulatory power of any public
official.
Personal calls by you or your field
representatives are necessary to ac-
X
A
■6
V
29
quire the dealer accounts which you
need for a volume of business. I know
of no other way to get this business
and no form of advertising that will
do it for you the easy way.
Efficient and speedy clearance of
credit applications is fundamental to
holding such business as you acquire.
We appreciate what our competitors
have taught us in this respect. 1 can
assure you it’s an important part of
the program.
In conclusion, I would like to make
a bad pun and say there is nothing
more constructive than a moderniza
tion loan. Of all the types of con
sumer credit loans which we usually
make, none is of such direct and last
ing benefit to the community as well
as the borrower.
It is easy to recognize that these
loans make direct contributions, be
yond those of other loan types, to
the prosperity of the local community
in the form of wages for labor, in profit
for the sale of goods, and in better
ment of the value of real property.
For this reason we should develop
our modernization loan program fully
when world conditions once again per
mit us to do so.—The End.
Direct Contact with
§8Bil§
Correspondents
1 Throughout the Nation
&
■
■
M
We cordially invite you to join our
many correspondents who, through
the years, have found association with
us both pleasant and profitable.
Direct Subway Entrance
The First National Bank of Chicago,
coincident with the completion of the
Milwaukee - Dearborn - Congress sub
way, has finished construction work
on a direct entrance to the subway
from the bank at Monroe Street and
Dearborn. This new subway entrance,
a part of the First’s continuing pro
gram of improvement, will be open
from 7:30 a. m. to 7:00 p. m. for the
convenience of the public, the bank
building tenants, the bank’s customers
and employes.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Assuring Efficient
Handling o f Your
S o uth icestern B us iness
*
C a p ita l F u n d s O v e r 8 S 0 .0 0 0 .0 0 0
N o rth w e ste rn Banker, A p ril, 1951
V
30
H a n l s W n a u t a I H r i s i n a 3 § r e t i a tf
INAL arrangements are now being
made for the joint conference of the
Lake and Midwest Divisions of the
Association of Bank Women, to lie
held in Minneapolis, Minnesota, at the
Hotel Radisson on April 27th, 28th
and 29th. Members will come from
twelve states: Illinois, Indiana, Michi
gan, Ohio, Wisconsin, Iowa, Kansas,
Minnesota, Missouri, Nebraska, North
and South Dakota.
For delegates arriving on Friday, a
“get-acquainted supper” will be served
F
in the Gold Room of the Radisson at
6:30 p. m.
On Saturday morning, Miss Cath
erine Cleary, regional vice president
of the Lake Division and trust officer
of the First Wisconsin Trust Com
pany, Milwaukee, Wisconsin, will act
as moderator during the panel discus
sions, to be given by ABW members
on mortgage loans, trusts, personnel
problems, and public relations. The
four panel speakers are: Miss Kath
erine C. LaCaille, assistant cashier,
$9,000,000,000
IN
T H E 6 9 Y E A R S since this organization was
founded, as N. W
Harris & Co., we have supplied
thousands o f conservative investors — insurance com
panies, corporations, financial institutions, estates and
Traders National Bank, Kansas City,
Missouri; Miss Regina Timmer, as
sistant trust officer, Marine National
Exchange Bank, Milwaukee, Wiscon
sin; Miss Ann M. Goehler, Mississippi
Valley Trust Company, St. Louis, Mis
souri: Miss Emma M. Steinke, assist
ant cashier and manager, women’s
department, First National Bank, Osh
kosh, Wisconsin.
Miss Virginia A. Rehme, regional
vice president, Midwest Division, and
assistant cashier, Southern Commer
cial and Savings Bank, St. Louis, Mis
souri, will act as chairman of the
luncheon to be given at the Curtis
Hotel.
Miss Marion Mattson, national presi
dent of the association and assistant
cashier of the Northwestern National
Bank of Minneapolis, will preside at
the banquet to be given in the Gold
Room of the Hotel Radisson, Saturday
evening, April 28th. The guest speak
er will be John deLaittre, vice presi
dent of the Farmers & Mechanics Sav
ings Bank of Minneapolis, who will
stress public relations and thrift in
our present economy.
The conference will close with a
Sunday morning breakfast in the
Windsor Room of the St. Paul Hotel.
St. Paul, Minnesota. Miss Dorothy
McMillen, Midland National Bank of
Minneapolis, conference chairman, will
lead the group discussion of associa
tion activities and progress.—The End.
j*.
y
y
◄i
in dividu als—with conservative securities totalling
Two Vice Presidents
more than nine billion dollars.
which we are willing to invest our own funds’ ’ . . . our Invest
Election of Forrest W. Denning and
Emmert H. Sink to vice presidents
of California Bank has been an
nounced by Frank L. King, president,
following a recent meeting of the
board of directors. E. R. Quigley was
named assistant auditor and William
L. Abernathy was promoted to assist
ant manager of the bank’s Los Ange
les Sixth and Western Office.
ment Department has been privileged to serve many
New Commissioner
Pioneering the developm ent o f such securities . . . con
tinuously follow in g the rule o f "security o f principal as
the first requisite’ ’ .. .and offering to investors "issues in
investors and their families through four generations.
,
INVESTMENT DEPARTMENT
Harris Trust and Savings Bank
Organized as N. W. Harris & Co. 1882
• Incorporated 1907
115 WEST MONROE STREET, CHICAGO 90
M em ber F ed era l Reserve System
N o rth w e ste rn Banker, A pril, 1951
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
•
M em ber F ed eral Deposit Insurance Corporation
Iowa Governor William S. Beards
ley last month appointed Charles R.
Fischer of Onawa as insurance com
missioner for the state of Iowa. Mr.
Fischer’s name was sent to the state
senate for confirmation to the fouryear term commencing July I, 1951,
at an annual salary of $6,500. The
insurance department also has securi
ties supervision under its jurisdiction.
Mr. Fischer was Governor Beards
ley’s 1948 campaign manager and has
been a strong supporter of the present
administration. He has held the posi
tion of insurance commissioner under
two former governors.
He will succeed Sterling Alexander
of Mason City as insurance commis
sioner.
"T-
31
IN V E S T M E N T S
Turbulence o f M arch H id T h is:
/ . P r o // u ee d L o a r/ - T e r n » 2 3As.
2 . fir m a r c i! T e d 's P r ie r P e y y i n y .
:tm Sir s to r e d F e d .1* S ta b iliz e r .
/ . M esta rm i S u p p ly a n d fir m a m i.
By RAYMOND TRIGGER
Investment Analyst
New York City
N TWO major counts, the Wash
ington authorities contributed
unnecessarily to the confusion
and uncertainty surrounding the gov
ernment bond market in the early
days of March. The details in connec
tion with a proposed offer of “long
term 2%s” for outstanding 2 V2 s of
June and December of ’72/’67 were
withheld, although a promise was
made that they would be revealed on
March 19th. Actually, the Treasury
was panicked into a gun-jumping an
nouncement on March 8th.
The other key problem was whether
or not the Federal Reserve was to
continue pegging prices. This subject
was delicately avoided and no formal
statement has ever appeared. Worse,
for a few days—till March 8th—the
Federal did support the market in its
usual style, only to pull the pegs
abruptly. The question was asked, but
not answered: Why support a mar
ket for three days, while buying hun
dreds of millions of offerings, if non
support was in the cards and became
the fact after so brief a period?
ment Bonds and the Public Debt, as
serted that it was a constructive step
both for investors and as a means of
checking inflation. Strongly implying
satisfaction, he continued, “the offer
ing of a higher yielding government
security should make it possible for
savings institutions to increase their
efforts to induce a greater rate of sav
ings among more wage earners.”
O
Appraisal of 23As
However, the blunders of official
dom are water over the dam. An ap
praisal of the new 29-year 2%s may
be attempted. Their merits are of
little direct importance to commercial
banks, of course, since these investors
held only $432,000,000 of the some $19
billion outstanding at last report. But
the indirect implications are great. On
the face of it, there is no apparent
reason why almost all of the present
holders of the exchangeable 2%s
shouldn’t jump at the chance to turn
them in for 2%s. The decision of U. S.
Agencies and Federal Reserve Banks,
owners of almost $3.7 billion of 2%s
on November 30, 1950, is unpredictable
since the Federal Reserve, at any
rate, may wish to hold on to its 2%s
in order to be in a position to influ
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Urge insurance Support
ings, should that seem to be required.
On the other hand, the owners of
some $15 billion of 2 V2 S, insurance
companies, savings banks and “other”
investors, might logically be expected
to accept the exchange offer. “ Other”
investors probably contain a large
amount of pension fund money and
the like. The obligations of these
funds are fairly remote in the main
and easily calculable. Since these in
vestors were content with long-term
2%s, even though they were market
able, they ought not to balk at long
term 2%s, even though marketability
may be required only at a presumed
penalty by way of a switch into a
five-year IV2 per cent note and sale
of it, presumably at a discount of
perhaps 2-3 points.
In any case, prominent spokesmen
for the insurance and savings bank
segments have blessed the new offer
ing. Thus, Henry Bruere, chairman
of the Committee of the National Asso
ciation of Mutual Savings on Govern
And, Carrol M. Shanks, president of
Prudential Insurance Company and
chairman of the Joint Committee on
Inflation Control of the Life Insurance
Association of America and the Amer
ican Life Convention, offered, “ The
Joint Committee strongly urges all life
insurance companies to support the
exchange offering to the maximum
possible extent. The Joint Committee
believes that the new Treasury pro
gram is a significant step in the right
direction in the fight against inflation
and thinks that it will prove but the
the first measure, growing out of the
accord, in a continued vigorous pro
gram by Treasury and Federal Re
serve authorities to prevent a further
expansion of the money supply.”
As this is written, since the books
may be held open on the new ex
change till well into April, the final
extent of acceptance is not known,
but it is hard to see anything like
a cool, or tepid response. In any
case, as earlier intimated, the fate of
this exchange offer is of little direct
significance to commercial banks, al
though a dismal failure would create
confusion worse confounded and un
questionably be reflected in all seg
ments of the investment market.
Assuming, though, that the ex
change is largely accepted by holders
of 2%s, there remain major aspects of
the whole financial policy of the Wash
ington authorities to be considered.
In the first place, if some $19 billion
N o rthw e ste rn Banker, A pril, 795»
32
Investments
of long-term governments are, in ef
fect, taken off the market, the task
of the Reserve in maintaining orderly
government markets will have been
made immeasurably simpler. At the
same time, it will be presented with
a challenge, not new, but in abeyance
for a decade or so, of maintaining an
orderly, as against a rigid, market.
This shouldn’t he hard to do and it
was one of the major original concepts
when the Reserve System was first
created.
Flexibility for Reserve
Having in mind that the new unmarketables may be marketed by first
exchanging them for five-year notes
and selling the latter, it is clear that
the extent to which the owners of
the new 2%s turn them into cash—
“monetize” the debt—will be largely
governed by the penalty involved.
The long-term government yield may
he said to be anchored to the price
of five-year IV2 S and this has been crit
icized as one of the most ingenious
ways by which the authorities could
further fog the outlook. But, it is
also an easy and most effective way
by which the Reserve can induce or
deter credit expansion. It obviously
provides a much wanted degree of
flexibility to the operations of the
Reserve.
Unless there should develop some
wholly unlikely combination of cir
cumstances, the government bond
market is in a new phase and will
MUTUAL FUNK SHARES
For
\ our
Bank
Customers
When your customers inquire about stocks and bonds, we
suggest that you recommend their investigation of mutual
fund shares, so that they may obtain adequate diversifica
tion. W e will gladly furnish prospectuses on all Mutual
Funds whose management we can recommend, and which
may be sold in the State of Iowa.
Different funds are suitable for different investment ob
jectives. W e have statistical information on all mutual
funds. W rite or telephone at our expense.
Your inquiry will be referred only to one of the
members of our firm who has been in the investment
business twenty years or more.
. . . . . . . G rade & Company
I N V EST M E N T BA N K E R S
415 Equitable Building, Des Moines, Iowa
•
Telephone 4-7297
WHEEL0CK & CUM M INS, INC.
IO W A AND GENERAL MARKET MUNICIPALS
PUBLIC UTILITY, INDUSTRIAL AND RAILROAD SECURITIES
IO W A CORPORATE SECURITIES
UNDERWRITERS
DISTRIBUTORS
Members Midwest Stock Exchange
200 E quitable Bldg.
135 South LaSalle St.
DES MOINES 9, IO W A
CHICAGO, ILLINOIS
N o rthw e ste rn Banker, A pril, 7951
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
remain so for an indefinite period.
That is, the era of pegs, or rigid price
patterns, has passed and the Reserve
is to be given an opportunity to func
tion as a stabilizing element rather
than a bottomless pit into which a
limitless amount of governments may
be dropped and inflationary credit
lifted.
The only sufferers from the new
policy—and most of their pains, how
ever severe, are over—are those who
were coasting along with long govern
ments on the assumption that they
could always be dumped onto the Fed
eral Reserve and thus were, for prac
tical purposes, short-term holdings
yielding long-term income.
Markets Hold Up
Before an outline of what may be
ahead is attempted, it may be worth
a paragraph or so to touch upon some
of the highlights of the markets in
high-grade securities immediately fol
lowing the “accord” of the Treasury
and the Federal Reserve. They are
a noteworthy tribute to all who par
ticipated—the issuers, the underwrit
ers and the investors. Oversimplified,
the markets took the news in stride;
not perhaps without shortening stride,
but certainly without faltering. An
example was $60,000,000 of Borden
Company debentures. The yield was
some 15 basis points more than might
have been expected before the Treas
ury’s new 2%s were known, but the
financing went through on schedule.
Similarly, almost $10,000,000 of Massa
chusetts bonds — long-term tax-ex
empts—encountered keen bidding by
dealers and good investor-reception;
again at better yields—but the fact re
mains that issuers, underwriters and
investors had not retired to sulk, but
merely adjusted their price notions to
a new set of conditions.
These price “adjustments,” of course,
were most widely publicized in con
nection with governments, which fell
under par without, however, disabling
the financial machinery.
Markets
were maintained and they were fairly
orderly. In passing, volumes traded
during the transitional period were
not large and, particularly, only a
handful of government bonds were
sold on the New York Stock Exchange
whereas, on one day, September 6,
1939, a total of $72,317,000 par value
of governments were traded on the
Exchange. Since those days, a big
ger, broader and less costly market
has developed over-the-counter.
Fed Policy the Key
As to the future: Assuming that
the Federal Reserve has been restored
to its proper place as the arbiter of
credit and high-grade security prices,
the key is to be found in the probable
Investments
policy of this body. So far as can
be seen, and deduced from the record,
a realistic attitude will govern.
The Federal Reserve, in all likeli
hood, will be influenced by conditions
as it finds them. There is no one
level, or pattern of interest rates pre
ferred above another. Credit and busi
ness conditions will be taken into ac
count.
Although it is now nearly two years
old, the historic statement of the Open
Market Committee of the Federal Re
serve may still be taken as indicative
of present reasoning. There has been
no modification or retreat since June,
1949. At that time the committee
said, “Maintenance of a relatively
fixed pattern of rates has the undesir
able effect of absorbing reserves from
the market at a time when the avail
ability of credit should be increased.”
To implement this policy, the Reserve
abandoned its policy of a ceiling on
bond prices and let them rise in order
that cheaper money rates might stim
ulate demand for credit. A year later,
the policy was reversed as business
conditions and credit demands seemed
to indicate. There wasn’t much of a
problem involved when it was a mat
ter of letting interest rates drop and
bond prices rise. Now, under the
new dispensation, there shouldn’t be
33
I V e o ffe r
f o r sale
th e n otes of
th ese
re p re sen ta tiv e
fin a n ce
co m p a n ies
Aid Investment & Discount, Inc.
Akron, Ohio
Automobile Banking Corporation
will find this institution especially
well equipped to handle their Chicago accounts
prom ptly and efficiently. Our com plete facilities
Philadelphia
Bilderbaek Inv. Trust
Champaign, III.
S. W. Coe & Company
Springfield, Illinois
Colonial Finance Company
Lima, Ohio
are at your disposal.
Commercial Discount
Corporation
Chicago
C it y
N a t io n a l
H an k
Consolidated Finance Corp.
Indianapolis, Ind.
A M I T i l U S T C O M P A N Y o f i'h U 'tu jn
208 S O U T H
( MEMBER
LA S A L L E
STREET
FEDERAL D E P O S I T INS URA NCE
CORP. )
Contract Purchase Corporation
Detroit
Interstate Finance Corporation
Dubuque, Iowa
Interstate Securities Company
Kansas City, Mo.
Mercantile Acceptance
Corporation
San Francisco
Mercantile Discount Corporation
Chicago
Merchants Acceptance Co.
Chicago
National Discount Corporation
INVESTORS MUTUAL
INVESTORS SELECTIVE FUND
INVESTORS STOCK FUND
South Bend
North American Acceptance
Corporation
Chicago
Northern Illinois Corporation
De Kalb, III.
Securities Acceptance
Corporation
Omaha
Winter & Hirsch, Incorporated
Chicago
Prospectus on request from Principal Underwriter
INVESTORS D IV E R SIFIE D SERVICES
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
ESTA BLISH ED 1894 AS IN V ES TO R S S Y N D IC A T E
MINNEAPOLIS, MINNESOTA
ASH W ELL
& COMPANY
176 WEST ADAMS STREET
CHICAGO, ILL.
Commercial Paper
Collateral Loans
Northwesfern Banker, April, 1951
34
Investments
N A TIO N A L SU R E T Y C O R P O R A T IO N
F IN A N C IA L
STATEM ENT
D ecem ber
31st,
1930
ASSETS
Cash
in
B a n k s .............................................................................. $ 4,087,447.94
Marketable Securities:
Bonds of United States
Government
..........................................$15,488,171.48
Bonds o f States and Political
Sub-Divisions
...............................
Bonds of Dominion
of Canada
.
.
7,010,305.56
.
748,900.07
Preferred
Stocks
...............................
4,848,020.00
Common
Stocks
...............................
12,425,560.00
40,520,957.11
Capital Stock of National Surety Marine Insurance Corpora
tion, a wholly owned s u b s id ia r y .......................................
Premiums in Course of Collection,N ot Over
Accrued
Interest
90 days due
2,253,013.19
.
2,350,967.21
.........................................................................
82,564.90
Reinsurance and Other Accounts R e c e iv a b le ............................
253,430.20
Home Office B u i l d i n g ...................................................................
450,000.00
T O T A L A D M IT T E D
L IA B IL IT IE S ,
ASSETS
CAPITA L
. . . .
AND
Reserve for Losses and Loss Adjustment Expenses
Reserve for Unearned Premiums
$49,998,380.55
SURPLUS
. . . .
$ 8,561,429-06
...................................................
14,420,570.00
Reserve for Commissions, Expenses and T a x e s ......................
1,571,605.50
Capital Stock
Surplus
.................................................. $ 7,500,000.00
.............................................................
A n o th e r i n d i c a t i o n o f
Arizona’s grow ing economic
17,944,775.99
Surplus to P o l i c y h o l d e r s ..................................................
TOTAL
much of a problem when lower prices
and higher interest rates appear in
order. The Reserve is free to throw
its weight about on both sides of the
market.
This newly restored freedom to per
form its ordained functions should
work out well. If commercial bank
lending continues to expand, restric
tive measures may be expected. If,
on the other hand, a shortage of in
vestments suitable for institutions de
velops later this year, cheaper money
may follow in order to encourage bor
rowing. There will be wider fluctua
tions in the money market under the
new conditions, but this will be more
than compensated by the restoration
of the effectiveness of supply and de
mand—factors which can be weighed
and used as guides.
If governments should sell several
points under par, there will be no
cause for special alarm. After World
War I, Liberty bonds sold down close
to 80 and no one doubted that they
would be paid off at par, as they
were. Meantime, discount prices for
governments deter institutions from
selling bonds for the purpose of lend
ing the proceeds to borrowers who
will use the funds for inflationary pur
poses. At the same time, discount
prices are an added inducement to
purchases by serious investors, con
cerned mainly with income. It may
come to pass that all the turbulence
of March, 1951, will some day be
looked upon as a briefly painful but
ultimately beneficial period of transi
tion.—The End.
im p o rta n ce is re flec te d in
25,444,775.99
................................................................... $49,998,380.55
our year-end loan totals o f
$ 1 2 4 ,5 0 0 ,0 0 0 — 6 1 % of all
A r iz o n a b a n k loan s — an
Marketable securities are carried on the basis prescribed by the New York Insurance
Department — bonds being carried at amortized values and stocks at values based on
rates promulgated by the National Association of Insurance Commissioners. If marketable
securities, including those of National Surety Marine Insurance Corporation, a wholly
owned subsidiary, were carried at the December 31, 1950 market quotations, total assets
and surplus would be decreased by $247,363.22.
Bonds carried at $1,181,716.39 are deposited as required by law.
a ll-tim e h igh fo r us.
A R I Z O N A ’S ST A T E -W ID E B A N K
V A L L E Y NATDONAL B A N K
R E S O U R C ES $2 6 8 M IL L IO N
H o m e O ffic e — P h o en ix, A rizona
FEDERAL DEPOSIT INSURANCE CORPORATION
Northwest ern Banker, April, J95 7
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
35
IN S U R A N C E
Seil itiff i tien s for Hu a iter A fien is
S ell O ffic e
Mlurfflarfi P o lic ie s
TYPICAL instance describing
the good opportunities for sell
ing office burglary and robbery
insurance is told in Pointers by the
Ohio Casualty Company. You can
benefit from this, too:
An incident that happened in our
home town prompted the writing of
this lead article.
It was nearing five o’clock on a Sat
urday afternoon, and the eight floors
of the First National Bank Building
were practically deserted. Ralph “Cot
ton” Bonar, who runs a barber shop
on the fourth floor, decided to lay aside
his scissors and call it a week. As
he stepped out of his door he saw a
man crouching in front of the door of
an office at the other end of the cor
ridor.
Instinctively, Ralph ran down the
corridor, but the intruder heard him
coming and scampered down the
stairs. The chase resulted in a victory
for the pursued, who reached the
ground floor ahead of the pursuer and
disappeared in the Saturday afternoon
shopping crowd.
Ralph located the building custodian
and returned with him to the fourth
floor. Five other offices, all with lim
ited locks, had been ransacked, and in
one of them was found a bag contain
ing loot. In a dentist’s office a cash
drawer had been broken open and
emptied of its cash. In an insurance
office, mail had been rifled and cash
and checks stolen.
This true story illustrates only one
of the hazards to which business and
professional offices are exposed. There
are many other ways in which the con
tents of offices are exposed to loss.
Here’s one common example: offices
are opened in the evening for cleaning;
thieves secrete themselves during a
temporary absence of the charwoman
and loot the office at their lesiure after
she has completed her duties and left.
The office burglary and robbery pol
icy is a “package” policy with seven
insuring agreements. For a thorough
understanding of the coverage, we
suggest that you study carefully the
analysis of the policy.
A
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Don’t think of this policy as one for
tenants of big office buildings only.
There’s a good market for it in small
towns as well as in big cities. Offices
in small buildings, over stores or in
residences, are subject to even greater
own office with an office burglary and
robbery policy—records show that a
high percentage of insurance agents
do. It’s good business for you, for
more than one reason. Any sales talk
is made much more effective when
the agent can say, “ I carry this policy
myself; wouldn’t be without it.”
S ee l*olietjou 'n ers
E very office b u ild in g offers
you an opportunity
hazards. Agents in small towns have
many opportunities to sell this cover
age to doctors, dentists, etc.
One final suggestion: protect your
The BMA Bulletin, published by the
Business Men’s Assurance Company,
suggests the possibility of calling back
on old policyowners who arranged
their insurance on an income basis
and selling them an additional cash
sum for last expenses:
A great many men feel that in leav
ing insurance for their wives, it is
best to arrange the proceeds on an
income basis. This relieves the wife
of investment problems and avoids
the unpleasant possibility that some
one may persuade her to make an un
wise investment of large sums of cash.
This is often a wise procedure, but
adequate emergency cash in a lump
sum for immediate needs should also
itold A f / v n t s
S v in o ti
AGENCY SCHOOL— Agents of the Employers Mutual Casualty Company from
all over the country were in Des Moines last month to attend an agency school
sponsored by the home office. The five half-day sessions closed with a luncheon
at which Dr. George H. Haskell, educational director of the American Mutual
Alliance, Chicago, was the guest speaker.
Pictured above with Dr. Haskell are officers of Employers Mutual Casualty.
From left to right they are M. J. Wilkinson, vice president and superintendent of
agencies; Dr. Haskell; John W. Gunn, chairman and treasurer, and John F. Hynes,
president of the company.
Northwest ern Banker, April, 1951
36
Insurance
Open H o u se in S í. H a n !
OPEN HOUSE— More than 4,000 people were guests of the St. Paul Companies—The St. Paul Fire & Marine, St. Paul-Mercury Indemnity, and Mercury Insurance
Company— at an open house at their home offices in St. Paul, Minnesota. The
occasion was the completion of a new five-story building as an addition to the
former quarters, and the over-all renovation and decoration of the old building.
The picture above shows the new and modern appearance of one section of the
interior.
More than 2,000 employes and their families, stockholders and directors also
visited the home office, including all of the various departments. Each depart
ment had set up exhibits explaining its exact operation and organization.
be provided in order not to leave the
wife temporarily in a bad financial
situation immediately following her
husband’s death.
It should be remembered that if the
contract is set up on a lump sum
basis, the beneficiary can, if she pre
fers, elect an optional income settle
ment instead. On the other hand, if
the contract is set up on an income
oasis, the income payments must be
HIGH S P O TS IN H I S T O R Y
VER M O N T CLAIM ED
BY
made as directed and she cannot take
any part of the money in cash. Where
benefits are planned on an income
basis, it may be that the policyowner
has not provided sufficient cash to pay
off his debts and also take care of
other expenses immediately following
death. It maj^ also be that the cash
sum that was planned five or ten
years ago would be totally inadequate
today.—The End.
7: VERMONT
FRANCE
FORT TICON DERO GA CAP TU RED
Famous in history are the Green
Mountain Boys. They were organized
in 1 7 7 1 . They reached the peak of
their fame by canturing Fort Ticonderoga.
In 1 7 7 5 , commanded by
Ethan Allen , they forced the fort's
garrison to surrender.
bers o f two Indian tribes, lead a raid
against the Iroquois Indians.
In so
doing they discovered the lake which
now bears Champlain’ s name.
He
claimed the land for the French.
NEW S AND VIEW S
(Continued from page 22)
years located in Miami, Florida, as
vice president of the Little River Bank
& Trust Company, was a visitor at
the N orthwestern B anker office last
month. He had just returned from
California, where he had gone to bring
back to Iowa for burial the body of
his brother, Arne Rye. At one time
the latter had also been a banker in
Northwood.
A nephew, Arthur C. Rye, is asso
ciated with Clarence in the bank in
Miami.
* * *
A banker recently returned from a
European trip outlines the following
difference between “ optimists” and
“pessimists” in Berlin:
The optimist is learning how to
speak English.
The pessimist is learning how to
speak Russian.
* * *
Recently we received a copy of the
“Annual Report and Financial State
ments” of the Reconstruction Finance
Corporation and Subsidiary (Federal
National Mortgage Association) for
the fiscal year ended June 30, 1950.
The report is dated December 4, 1950,
and signed by W. Elmer Harber, chair
man. The 00-page report is replete
with statistics, charts and financial
statements, but even by reading be
tween the lines we can’t find any men
tion of “mink coats,” “pressure poli
tics” or “payoff jobs.”
Since the annual report goes to the
President, the President of the Senate,
and the Speaker of the House of Rep
resentatives, it was undoubtedly de
cided that these busy executives
should not be bothered with such triv
ial events.
* * *
At the recent annual meeting of the
Chicago Association of Commerce, Guy
E. Reed, executive vice president of
the Harris Trust and Savings Bank,
was installed as president of the asso
ciation. In his inaugural address he
declared that it is essential for busi-
DES MOINES BUILDING LOAN &
SAVINGS ASSOCIATION
Oldest in Des Moines
A L S O A H IG H SP O T . . .
210 6th Ave.
. . . in any insurance agent’ s career is when he join s H awkeye-Security &
Industrial’s great team. He know s that these tw o com panies are w orking
constantly to build m ore sales fo r him . . . prom pt, equitable settlements,
plus skilled field representatives to w ork closely with him, help build sales.
That’ s w hy the trend is to H aw keye-Security & Industrial.
H A W K E Y E -S E C U R I T Y
IN S U R A N C E
IN D U S T R IA L IN S U R A N C E C O .
Des Moines, Iowa
Horthwestern Banker, April, 1951
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
CO.
Dial 2-8303
ELMER E. M ILLER
Pres, and Secy.
HUBERT E, JAMES
Secy.
FOR Y O U R E N JO Y M E N T . . .
Listen to the
“ WORLD OF MUSIC”
KRNT, 1350 KC
I to 1:30 p.m., Sundays
Insurance
ness to exercise self-sacrifice and selfrestraint in meeting the double bur
den of civilian and military produc
tion, if America is to avoid “unbri
dled inflation’ and preserve its liber
ties.
“We are conscious,” he said, “that
in the battles ahead we can win the
battle of production, and lose for fu
ture generations the opportunities and
way of life with which we have been
blessed. We must preserve the atmos
phere of freedom so that the enter
prise of free men will have full play.”
Mr. Reed has long been associated
with the work of the Chicago Asso
ciation of Commerce, as a vice presi
dent and a director. He is also chair
man of the Chicago Crime Commission
and chairman of the American Library
Association Endowment Trustees.
* * *
The “sport” of name calling and
public accusations, most of it irre
sponsible and wild, has developed into
a national pastime. Many times each
person has wished he knew the per
sons involved so he could establish
in his own mind the validity or falsity
of the statements made, for too often
the accused does not have the facilities
to proclaim his innocence as publicly
as the one who finds it so easy to make
the charge.
A case like this occurred last month
when Iowa Democratic Chairman
Jake More issued a formal press re
lease charging the Merchants Mutual
Bonding Company of Des Moines was
in collusion with the governor’s office
in regard to applications of notaries
public for new commissions or else
there was a leak in the governor’s
office. A letter from the governor’s
office was mailed on a Monday morn
ing, advising notaries to send in $5 for
renewal of their commission. On
Wednesday of that same week, Elmer
Warner, secretary-treasurer of the
Merchants Mutual, sent a copy of the
letter to notaries bonded by his firm
(2,500 in Iowa), suggesting they trans
mit the renewal fee and the $3 bond
ing fee to his office and as a service
his firm would take care of their re
newal.
Mr. More thought this highly irregu
lar and made his accusation public
ly. He thought Mr. Warner’s letter
couldn’t have gone out so quickly
without advance notice of the gover
nor’s action.
For the information of N o r t h w e s t
e r n B a n k e r readers who saw the news
story carrying Mr. More’s ridiculous
charge to the detriment of Mr. War
ner’s character in the eyes of people
who don’t know him, let these facts
be reported:
renewal, a contract letting, or
scheduled renewal of any kind of
business.
2. Governor Wm. Beardsley is
a veteran Republican.
Mr. Warner is a staunch Dem
ocrat— his original home is Ver
mont.
4. From personal contact, we
know Mr. Warner’s ethics and
morals to be of the highest type
—morals and ethics that are so
badly needed today throughout
our government and in many
places in both political parties.
Let’s hope we have no “More” of
these stupid charges!—The End.
FINANCIAL
37
New Branch
A new branch of the Chase National
Bank was opened last month in Santurce, a suburb of San Juan, Puerto
Rico, bringing to four the number of
new branches the Chase has added
to its operations in the Caribbean
area during the past few months.
David Rockefeller and Otto T. Kreuser,
vice president at the Chase head office
in New York, flew to Puerto Rico to
be present at the opening ceremonies.
The Santurce Branch will be man
aged by Fred M. Allies, under the
supervision of Carl B. Brunner, sec
ond vice president, who is in charge
of all Chase operations in Puerto Rico.
STATEMENT
DECEMBER 31, 1950
A SSE TS
CASH ON H A N D A N D IN B A N K S ..................... $ 4,196,558.13
BO N D S: U. S. Governm ent.......................................... 34,596,600.09
Other B onds.................................................... 36,372,787.92
CASH A N D B O N D S ................................................................................8 75,165, 946.14
F IR S T M O R T G A G E LOANS ON R E A L E S T A T E .................... 35,608, 147.08
F. H. A. L O A N S .........................................................................................
46,778, 269.00
LOANS G U A RA N TE ED B Y VETE R AN S’ A D M IN IST R A T IO N
6,672, 634.57
H OM E OFFICE B U IL D IN G ................................................................
758, 400.00
10, 008.68
R E A L E ST A T E SALES C O N T R A C T S ............................................
S T O C K S ........................................................................................................
34, 505.00
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
BU T N OT Y E T D U E ........................................................................
985, 863.50
IN T E R E S T A N D R E N T S D U E ON IN V E S T M E N T S
114, 957.74
(None of which is past due more than 90 days)..............................
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
COURSE OF C O L L E C T IO N ............................................................
3,460, 027.08
LOANS TO P O L IC Y H O L D E R S ..........................................................
13,096, 408.60
T O T A L A S S E T S ................................................................................ $182,685,
LIABILITIES
P O L IC Y R E S E R V E S ................................................................................$165,780 ,199.43
1,289 ,279.45
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 ................
R E SE R V E FO R T A X E S ........................................................................
2,267 ,962.31
E SC R O W FU N D S (Deposited b y mortgagors for payment of
taxes and expenses).................................................................................
730, 739.50
R E SE R V E FO R A CC O U N T S N OT Y E T D U E ...............................
902. 339.96
P O L IC Y H O L D E R S ’ D IV ID E N D S ..............................................................2,547 ,948.35
2,122, 201.00
MASS H A ZA R D R E S E R V E FO R GR OU P IN S U R A N C E _____
R E S E R V E FO R F L U C T U A T IO N IN A SSET VALU ES A N D
IN M O R T A L IT Y ..................................................................................
1,948, 718.00
T O T A L ...................................................................................................$177,589, 388.00
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 V A IL A B L E
FO R FU 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 ...........................................................
309, 550.00
SU R P L U S......................................................................................................
4,786, 229.39
T O T A L L IA B IL IT IE S ..................................................................... $182,685,
ir☆ irAùû
General A merican L ife Insurance
company
SAINT LOUIS
1. It is only good business to
anticipate an insurance premium
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Northwest ern Banker, April, 19 5 F
38
Insurance
P u b lie S e r v ic e P r o je c t s /V u e
W a if f o r it c f f n la r Étant,; P r o m o t io n
(Continued fr om page 19)
ings of the bank. Each bank is in ern business operation. Our three
corporated separately and a charter is full-time Fulton employes visit a dif
granted by .Junior Achievement, Inc. ferent bank each day of the week and
Each bank has stockholders, directors help the students organize their bank
and a board; a president, a vice presi work and assist them generally.
dent and a secretary. The latter are
LIFE T N S U R E I) SAVINGS
elected by the students. Special de
* PLAN. In late 1950 the Fulton
posit books were printed for the stu National worked out a life insured
dents.
savings plan which guarantees a sav
The Fulton National employs three ings goal fixed by the individual. Each
people who devote their full time to customer sets his or her own savings
supervising and helping these banks, goal—$100, $250, $500 or $1,000—and
which runs into a big job, for one makes 50 regular monthly deposits in
student out of three has a savings ac amounts of $2, $5, $10 or $20 to cover
count. High school students are en the plan selected. In addition, the
couraged to save small amounts reg customer deposits 2 cents, 5 cents, 10
ularly with a definite goal in mind.
cents or 20 cents with each monthly
The accounts of each bank are au deposit for life insurance protection.
dited regularly by the Fulton Na The account draws interest at the
tional auditor. Besides encouraging regular savings rates.
the habit of thrift, these banks teach
Under the Fulton plan, any one
the students the functions of a mod- from age three months to 56 years, in
3
MERCHANTS
MUTUAL
good health, can open such an account,
without medical examination, merely
by signing a “good health” statement.
BO N D IN G
COMPANY
Elected Treasurer
Incorporated 1933
Home Office
2100 GRAND A V E N U E
IOWA •LITHOGRAPHING •COMPANY
FOUNDED BY GEORGE H. RAGSDALE -
■ EDWIN G RAGSDALE » SECRETARY
Des Moines, Iowa
515 TWENTY EIGHTH STREET
DES • M O IN E S
This is Iowa’ s oldest surety company.
The full amount of the savings goal
is protected, with the difference be
tween the balance in the account and
the goal set by the customer being
paid. The 60-year-old Life Insurance
Company of Georgia is underwriter of
the plan.
These first two promotional plans
geared to the “public benefit” idea,
and other types of public relations
brought our bank a total of 600 inches
of newspaper publicity in 1950. As
mentioned before, we are continuing
also our regular advertising schedules
on behalf of our general banking, trust
and correspondent departments, as
well as the special features illustrated
by our Life Insured Savings Plan.
We use newspapers, direct mail, post
ers and trade publications, but always
follow up each of these with personal
calls by officers from the bank.
We find that our promotion of civic
ideas like the “Pine Tree Planting
Program” and the “ High School Sav
ings Banks” opens the minds of At
lanta and Fulton county citizens to
our willingness to serve them. Then
when we go out to sell our own bank
services we find we have already bro
ken down the barriers and have
friends waiting for us.—The End.
Q U A L I T Y - E X P E R I E N C E .
A progressive company with experi
enced, conservative management.
• S E R V I C E
Announcement was made by Earl
E. Crabb, chairman and president of
Investors Diversified Services, Inc.,
Minneapolis, of the election of Harry
C. Thompson as treasurer of I.D.S.,
to serve as the company’s chief finan
cial officer. It is contemplated that
he will be elected a director of the
firm, the largest single factor in the
nation’s investment company field, at
the annual I.D.S. board meeting on
April 24th.
Mr. Thompson is a director of the
Chesapeake & Ohio Railway Company
See Your Allied Mutual Agent For
• Workmen's Compensation
• Public Liability
• Full Coverage Automobile
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.
Write us for the names of nearby agents
ALLIED MUT UA L
CASUALTY COMPANY
E. H. W ARN ER
Secretary and Manager
Harold S. Evans, President
W . W . W ARNER
4th and Park Streets
Assistant Secretary
Scarborough’s Chattel Mortgage Non-Filing Insurance
gives you the same protection afforded by actual filing
or recording—plus a very material saving of time,
money, and worry.
N orthwestern Banker, April, 195?
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
=
|
§
Des Moines 9, Iowa
S ca rb o ro u g h &
*T| C o m p a n y ,n“ ° Co
unselors
to
Banks
FIR S T N A T I O N A L B A N K B U IL D IN G . C H IC A G O 3, IL L IN O IS . STa*e 2 -4 3 2 5
Insurance
and a member of the C & 0 finance
committee and chairman of its retire
ment committee.
A former vice president of the
company is listed at $1,302,922, and
total assets at $1,739,715.
In addition to the company’s finan
cial responsibility as reflected in its
balance sheet, holders of warehouse
receipts are insured up to $2,000,000
against any loss in excess of $15,000
for which the company or its subsidi
ary may be legally liable, with a limit
of $1,000,000 at any one warehouse
location, automatically reinstated in
case of loss.
The field warehousing service of St.
Paul Terminal Warehouse Company
has made it possible for hundreds of
banks to extend accommodations to
valued customers in excess of open"
line limits to mutual advantage.
39
First Edition of "Bank Costs"
The widening interest in bank costs
today points to a strong demand for
the first edition of “Bank Costs,” now
being printed by The National Asso
ciation of Bank Auditors and Comp
trollers.
“Bank Costs” will be eight and onehalf by eleven inches and will contain
360 pages, including 160 tables, show
ing actual applications of a cost ac
counting procedure. It is being pre
pared in loose-leaf form to facilitate
the insertion of new or revised mate
rial, and is particularly adapted to
the heavy-duty, expandable “NABAC
Service Binder” now available at the
Chicago office.
H
H A R R Y C. T H O M P S O N
E lected treasurer of
Investors D iversified S ervices, Inc.
Chemical Bank & Trust Company of
New York, he has long been promi
nently identified with New York bank
ing circles. Throughout his banking
career he has specialized in trust fund
management and administration.
St. Paul Terminal
Annual Report
In its annual report based on oper
ations at the close of business in 1950,
the St. Paul Terminal Warehouse
Company shows total current assets
of $968,184, comprising cash of $246,196, bonds and other securities of
$505,733, and trade receivables of $216,255. Capital stock and surplus of the
A
L
T
Yes, halt in your busy work day and check the kind of insur
ance you are able to offer to your clients.
They look to you
to protect their investments, and their most cherished posses
sions— their homes.
Can you offer them a com plete line o f
insurance geared to their 1951 needs?
It is our sincere hope
that you can answer this in the affirmative.
W e stand ready here at Western Mutual to give you the
signal to “ GO” with a com plete line o f
Fire — A utom obile
★
Plate Glass
★
and
Personal Liability Insurance
A letter or phone call will bring an interested response
BO O K BIN D ERS
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Western Mutual
Insurance Co.
Ninth and Grand
Des Moines 8, Iowa
Northwestern Banker, April, 7951
40
"O u r c o i/ e c tio n / te r n s ?
l/ lteV e u s e d
B a n k ers T r u s t t ò r a to u t 2 0 ¿/ ea rs, / ta rry .
D id (/ou t r o ia th e y / n icroti/ n ? a// tr a n s it
ite m s p a y a t/ e o u ts id e o f i t e ta f o r k t o r
t/ ie ir c o r r e s p o n d e n ts 'p r o t e c t io n 7 "
jiiääSMMiXi.m
collection service through Bankers Trust
W here collections are concerned, it’s
T o further minimize delay, you
accuracy, speed and dependability
are invited to write us with a view
to securing full benefit from mail
that count.
W hen your bank sends its checks,
notes, drafts, trade acceptances and
bills o f exchange to us for collection,
you receive prom pt and dependable
service—tw enty-four hours a day. A ll
transit items payable outside o f N ew
Y o r k are m icr o film ed fo r y o u r
protection.
and express schedules —both rail and
air.
In addition, our experienced C ol
lection Department receives millions
o f coupons and bonds for collection
every year. N o matter how great our
volume may be, particular attention
is given to items that require special
handling. Coupons and bonds are
examined to expedite presentation
and minimize "returns.”
Through our experienced Foreign
Division, we can also give you fast
collection service on your foreign
items.
For full information on the co l
le ctio n service in w h ich y o u are
interested, please w rite B an k in g
D ep artm en t, Bankers Trust C o m
pany, 16 W all St.,
N ew York 15.
Modern, high-speed equipment,
plus careful w ork by experienced
personnel, insure that your bank ob
Ba n k e r s T r u s t Co m p a n y
tains the proceeds o f its collection
NEW YORK
items with maximum speed.
Banker, April, 1951
Digitized for Northwestern
FRASER
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION
41
Moves to Blue Earth
Minnesota
N EW S
W IL L IS A . PUTM AN
President
Duluth
New Credit Officer
Appointment of Joseph R. Eikenberry to direct operations of the Timepay Bank Credit plan at the Freeborn
County National Bank of Albert Lea,
Minnesota, has been announced by E.
T. Sletten, president.
Mr. Eikenberry goes to Albert Lea
from Minneapolis, where he has been
associated with the Community Credit
and Finance Company. Previously,
he was with the Universal C. I. T. Cor
poration at Grand Forks, North Da
kota, and with the Commercial Credit
Corporation in St. Paul and Sioux
Falls, South Dakota.
A native of Faribault, Minnesota,
Mr. Eikenberry went to high school
there and in Minneapolis and later
attended the University of Minnesota.
Elect New Cashier
R. B. Johnson, assistant cashier with
the State Bank of Clarks Grove in
Clarks Grove, Minnesota, for over 20
years, has been elected cashier to suc
ceed A. J. Lageson. After more than
30 years’ service with the State Bank,
Mr. Lageson resigned as cashier re
cently and left for Texas where he
plans to go into business.
C. C. Cavanaugh, formerly assistant
cashier of the Citizens State Bank at
Belle Plaine, Iowa, is the new assist
ant cashier of the Clarks Grove bank,
as reported previously in the N orth
w estern
B an k er .
Resigns at New Ulm
Walter J. Gareis, assistant cashier
of the State Bank of New Ulm, Minne
sota, has resigned to take up another
business connection.
Heads Wilmont Bank
E. L. Meyer has been elected chair
man of the board and president of
the First National Bank of Wilmont,
Minnesota. He fills the vacancy cre
ated by the death several weeks ago
of C. W. Becker, 80, who had been
president for 32 years. Mr. Meyer for
merly was vice president and cashier.
W. C. Meyer has been elected vice
president and O. C. Kuhl was advanced
from assistant cashier to cashier.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
RO BERT E. PYE
Secretary
Minneapolis
E. L. Meyer moved to Wilmont from
Fairmont in 1940. Mr. Kuhl started
with the First National of Wilmont in
1939 as a bookkeeper, serving in the
Armed Forces from 1941 to 1945.
Returns to Worthington
Elvin Thue, former agriculture in
structor in Worthington, Minnesota,
high school, will return to Worthing
ton some time between the middle of
April and May 1st to take over the
post of farm service officer with the
Worthington National Bank.
75th Anniversary
The 75th anniversary of the Citizens
State Bank of New Ulm, Minnesota,
was observed last month by officers
and personnel of the bank, business
houses in New Ulm and a number of
neighboring and Twin City banks.
Founded December 13, 1875, the bank
opened early in 1876 for business, be
came a private bank in 1883, then was
reconverted to a state bank in 1908.
Officers of the bank are: Frank H.
Retzlaff, president; Adolph G. Meile,
vice president; H. H. Prahl, executive
vice president; W. F. Huevelmann.
cashier, and W. E. Comnick and D. J.
Gollnast, assistant cashiers.
Kanabec Bank Remodeled
Completion of a three months’ re
modeling program at the Kanabec
State Bank in Mora, Minnesota, was
announced recently by Frank P. Pow
ers, president. An entirely new and
modern appearance now is presented
in the interior, featured mainly by
low type counters in front of tellers’
windows.
Much new equipment has been pur
chased, including a complete Recordak
system. A huge neon sign about four
feet high and 15 feet long has been
erected on the front of the bank.
Elect New Directors
Stockholders of the First National
Bank in Good Thunder, Minnesota, re
cently elected two new directors. They
are A. L. Prange and Viola Pautsch.
cashier. H. E. Glaeser continues as
president and Harry Barnard as vice
president.
Roger B. Kleven, formerly cashier
of the Freeborn County National Bank
at Albert Lea, Minnesota, has been
elected cashier of the First and Farm
ers National Bank at Blue Earth.
Mr. Kleven started his banking ca
reer at Brainerd in 1934 with the First
National Bank, where he worked until
joining the navy during World War
II. After returning from the navy, he
went with the Freeborn County Na
tional at Albert Lea. All of these
banks are affiliated with the First
Bank Stock Corporation of Minneap
olis.
Install Depository
B. B. Kotilinek, president of the In
ternational State Bank, International
Falls, Minnesota, has announced the
installation of a night depository for
use by customers. It is the first sys
tem used in that city.
Surplus Increased
Surplus of the First National Bank
of Albert Lea, Minnesota, was in
creased recently by transfer of $50,006
from undivided profits. R. W. Delany,
president, reports that capital now is
$100,000 and surplus is $150,000.
With Anoka Bank
D. H. Gregerson has been elected
vice president of the First National
Bank of Anoka, Minnesota. He has
moved to Anoka from Hudson, Minne
sota, where he held a similar position
with the First National Bank.
Mr. Gregerson is a native of Wiscon
sin and is a graduate of the School of
Banking at the University of Wisconson. He is married and has three chil
dren, one girl and two boys.
Joseph Underleak
Joseph Underleak, 96, veteran bank
er, lawyer and pioneer resident of
Chatfield, Minnesota, died at his home
recently following an illness of sev
eral weeks.
Mr. Under leak was born March 13,
1854, in Czechoslovakia a n d was
brought to the United States by his
parents when he was eight weeks old,
first settling near Racine, Wisconsin,
and moving to Chatfield in 1856. He
aided in organization of Chatfield’s
first bank and was president of the
First National Bank there for 34 years,
retiring five years ago at the age of
91.
Bank Remodeled
The interior of the Rock County
Bank at Luverne, Minnesota, has been
r e m o d e l e d and redecorated. The
changes made have enlarged the bank
ing lobby and office space.
Northwestern Banker, April, 195f
42
UGENE J. McNEEEY, president of
E
the Northwestern Bell Telephone
Company, O m a h a, Nebraska, was
elected a member of the board of di
rectors of the Northwest Bancorporation at the annual meeting in Minne
apolis.
All other directors were re-elected.
They are: James F. Bell, Harry A.
Bullis, John Crosby, Thomas Tj. Dan
iels, Donald C. Dayton, John B. Faegre,
Frank T. Heftelfinger, Clarence E.
Hill, John S. Pillsbury, Joseph F. Ringland, Augustus L. Searle, Harold
W. Sweatt, Valentine Wurtele and
J. Cameron Thomson, all of Minneap
olis; Wilfred E. Rumble and Walter
G. Seeger, St. Paul; Robert Congdon,
Duluth; Edward B. Cosgrove, LeSueur;
Ward Eucas, Winona; Fred Bohen, Des
Moines, and J. Morrell Foster, Ot
tumwa.
Mr. Thomson, president of the Bancorporation, said the percentage of
votes cast at the meeting was the larg
est in the corporation’s history.
He told stockholders that in spite
of higher operating expenses and
much higher income taxes, results for
1950 were the best in the corporation's
history.
“During the last year,” he said, “the
stock of the American Exchange Na
tional Bank of Virginia, Minnesota,
was offered to us and was purchased.
Deposits of this bank were assumed
by our affiliate, the State Bank of
Virginia. The American Exchange
National Bank subsequently was liqui
dated. We have no present plans for
expansion that would involve subs t a n t i a l expenditure of corporate
funds.”
* * *
Stockholders of the Produce Ex
change Bank of St. Paul have ap
proved a directors’ recommendation
for a stock dividend distribution on
the basis of one new share for each
held by a stockholder of record Janu
ary 9th.
Santo Speranza, bank president, who
announced the dividend, said the new
issue will bring the total shares out
standing to 1,000, and increase the
bank’s capitalization from $50,000 to
$100,000.
Directors also transferred $50,000
from undivided profits to surplus ac
counts, to raise the bank’s surplus to
$100,000.
* * %
Henry T. Rutledge, vice president
of the Northwestern National Bank
of Minneapolis, has been
elected a
director of the Minneapolis Chamber
of Commerce.
* * *
Customers at the First National
Bank of St. Paul now can get curb
service. Curb tellers, called “snor
kels” in banking circles after the peri
scope-like breathing devices on sub
marines, have been placed in a num
ber of eastern banks in recent years.
The St. Paul bank’s curb teller is
located on the Fourth Street side. The
device is operated by a bank teller in
a vault beneath the sidewalk. Teller
and customer see each other in mir
New Ideal Hospital and Surgery Plan
Covers your wife, children and other dependents.
Choice of $4.00, $8.00 or $12.00 Per Day for Hospital.
Choice of $75, $100 or $125 Surgical Schedule.
Fee of $4.00 Pays for $8.00 a Day Hospital Policy to
September 15, 1951.
Minnesota Commercial Men’s Association
2550 Pillsbury A ve . So.
Northwest ern Banker, April, 1951
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
M inneapolis 4, Minnesota
rors and communicate through a mi
crophone arrangement. Deposits and
passbooks are exchanged by means of
an electric elevator controlled by the
teller.
* * =t=
Two St. Paul bankers have been
elected to three-year terms as mem
bers of the board of directors of the
St. Paul Association of Commerce.
They are Rollin (). Bishop, president
of the American National Bank of
St. Paul, and Arthur E. Peters, vice
president of the First National Bank
of St. Paul.
* * *
Reuben C. Stoeckmann, St. Paul
banker, died in St. Paul recently at
the age of 50, following a heart attack.
He had been engaged in the banking
business in St. Paul many years, and
at the time of his death was vice presi
dent and cashier of the Northwestern
State Bank of St. Paul. He was as
sistant cashier of the Dayton’s Bluff
State Bank of St. Paul prior to join
ing the staff of the Northwestern State
Bank in July, 1933. He was a member
of the American Institute of Banking.
iji
5ji
“Thrifty ’50” is the title of the an
nual statement of the Farmers & Me
chanics Savings Bank of Minneapolis.
Printed in booklet form, it contains
numerous cartoon drawings picturing
functions of the bank and its growth
during the year. The idea came from
“The Marshall Plan and You” booklet
published in Holland, John de Laittre,
vice president, said.
The bank last year reached an alltime deposit high of $167,191,655. De
positors total 192,432. The bank made
a total of $21,889,271 in mortgage
loans.
* * *
Harry Yaeger, retired vice president
of the Federal Reserve Bank of Minne
apolis, died recently in Clearwater,
Florida, at the age of 78. Funeral
services were held in Clearwater.
A native of Montana, Mr. Yaeger
joined the federal reserve bank in
1919. He became vice president in
Minnesota News
1936 and retired the following year.
Before coming to Minneapolis he was
executive vice president of the Great
Falls, Montana, National Bank.
* * *
Joseph J . Manchak has been elected
an assistant cashier of the First Edina
State Bank, according to a recent an
nouncement hy Malcolm B. McDonald,
president of the bank. Mr. Manchak
joined the First National Bank of
Minneapolis in 1929 and has served on
staffs of various other banks in the
First group.
* * *
Bankers from 19 western Wisconsin
counties recently attended the 47th
annual meeting of Group One of the
Wisconsin Bankers Association at Ho
tel Lowry, St. Paul. Among the visit
ing delegation were Millard Barlow,
Bloomer, group president: Oscar Lindliolm, Hayward, group vice president;
Ralph Gilbert, Eau Claire, secretarytreasurer, and AY. F. Kirchner, Alma,
past president. Lloyd Leider served
as chairman of the host committee,
representing St. Paul clearing house
banks.
=t= * *
Mrs. Evangeline Mae Dwight, wife
of Floyd L. Dwight, vice president of
the First National Bank of Minneap
olis, died in Rochester, Minnesota, re
cently at the age of 44 after a long
illness.
* * *
George M. Rockwell, assistant cash
ier of the Federal Reserve Bank of
Minneapolis, reviewed provisions of
Regulation W at a luncheon meeting
of the Minneapolis Electric Appliance
Dealers Association.
* * *
Gilbert R. Falk, assistant secretary
and manager of the credit department
of the Northwest Bancorporation, has
been elected assistant vice president
of the Midland National Bank of Min
neapolis, Armilf Ueland, president, an
nounced recently.
Mr. Falk, 39 years old, entered the
employ of the Northwestern National
Bank of Minneapolis in 1925 as an
office boy and was employed by the
Northwestern Bancorporation in 1941
as credit analyst. He was promoted
to assistant secretary and manager in
1947.
A native of Newton, Iowa, he was
educated in the public schools and the
University of Minnesota, and has
taken American Institute of Banking
courses in banking.
=t= * *
General Harold Palmer Howard, for
mer custodian of the Federal Reserve
Bank of Minneapolis, died recently at
his home in Minneapolis at the age
of 84. Funeral services were con
ducted in Minneapolis.
*
*
George S. Henry, vice president,
First National Bank, and chairman of
the general convention committee for
the Minnesota Bankers Association,
announces membership of five com
mittees for the convention which will
be June 13th and 14th at Hotel Radisson, Minneapolis. The committees are
as follows:
43
Entertainment— Chairman, Kenneth
T. Martin, vice president, First Na
tional; L. P. Grisvoid, vice president,
Northwestern National; Silas Olson,
assistant cashier, Midland National,
and Otto Preus, assistant vice presi
dent, Marquette National.
Banquet—Chairman, E. Walter Engstrom, assistant vice president, Mid
land National; L. M. Broom, assist
ant cashier, Northwestern National;
George Coonrod, vice president, Mar
quette National, and R. O. Weyraneh,
assistant cashier, First National.
Ladies Entertainment — Chairman,
Miss Genevieve Howe, Marquette Na
tional; Miss Carmen Behmer, First
National; Miss Elaine Emires, Midland
National, and Miss Burdella Peters,
Farm ing, lik e B an kin g ,
is based on Sound Planning
Helps Farmers Build For The Future
Bankers, w h o every year are called u pon
to advise th eir p rogressive farm er c li
ents, k n o w that their o w n as w ell as the
farm er’ s future lies in soun d business
p la n n in g. T h ese bankers k n o w that
w h en a farm er m akes an investm ent in
quality, d ep en d a ble M M M O D E R N
M A C H IN E S , V IS IO N L IN E D T R A C
T O R S and P O W E R U N IT S , he's in
vesting in m achinery that w ill pay b ig
d iv id en d s in secu rin g a m ore stable
future for all.
Farmers Expect, AND Get, More In MM
F a rm e rs k n o w th at M M M o d e r n
M ach ines, prepare the grou n d correctly
. . . cultivate the cro p s p rop erly . . . and
harvest the cro p s right, o n tim e, every
tim e. Since M M farm m achines are d e
pen da b le, a p rogressive farm er can
plan his farm in g soundly. H e expects
an d receives m ore from M in n ea p olisM o lin e . . . a w ise investm ent fo r p r o
gressive farm ers everyw here.
BANKS fir SALE
W r it e (or our Bank P urchasers A pp licatio n . 3 you
o re in the m arket to bu y. M any fine opportunities,
now a v a ila b le . A ll n e go tiations confidential*
H EN RY H
B Y E R S, President
BANKERS SERVICE CO., INC.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Northwestern Banker, April, 1951
44
Minnesota News
Northwestern National.
Golf— Chairman, Keith M. Barnett,
assistant cashier, Northwestern Na
tional; A. W. Gray, vice president, Mid
land National; Ronald B. Harrison,
c a s h i e r , Marquette National, and
Stryk H. Onilie, assistant cashier, First
National.
Registration — Chairman, Signor R.
Silverness, assistant vice president,
Marquette National; Charles E. Corehran, vice president, First National,
and George C. Magnuson, assistant
cashier, Midland National.
* * *
Promotion of three officers and elec
tion of three others were announced
by Joseph F. Ringland, president, fol
lowing a meeting of the board of direc
tors of the Northwestern National
Bank of Minneapolis.
Raymond Clausen was promoted
from assistant vice president to vice
president. C. T. McGarraugh, a com
mercial loan officer, was promoted
from assistant cashier to assistant vice
president. Winston L. Molander was
promoted from assistant secretary to
assistant vice president. Paul W.
Noreen was elected assistant cashier
in the bank’s commercial division.
Malcolm G. Pfunder and Thomas K.
Conners were elected trust officers.
Mr. Clausen joined the bank in 1934,
Instantly AC CEP -ED •••
in over 1,800* Dining Cars
“ American Express Travelers
Cheques are instantly accepted
in all our dining cars,” says
Edward Wason, steward on the
N ew Y o rk C e n tra l’ s crack
Knickerbocker.
Your customers rely on you as their
banker to give them the best possible
service. When you sell them American
Express Travelers Cheques, you sell
them the very best—cheques that are
convenient as cash . . . and 100% safe!
T h e y C o m m a n d a World
of Service
Fm
American Express
originated the Trav
elers Cheque in 1891.
Through years o f
vigorous promotion and national ad
vertising, these cheques have become
the best known and by far the most
widely accepted in the world.
In stantly A ccepted
in a M illion Place s
As a result, at a million places—service
stations, restaurants, hotels; railroad,
bus and air terminals; shops and stores
all over the world—American Express
Travelers Cheques are instantly recog
nized and accepted.
* Total number o f dining cars in the
United States— 1,802. Source: Associa
tion o f American Railroads’’ Statistical
Summary, October, 1950.
THE M O S T W I D E L Y A C C E P T E D C H E Q U E S IN THE W O R L D !
A merican Express T ravelers Cheques
Northwest ern Banker, April, Î 9 S I
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
was made a trust officer in 1945 and
assistant vice president in 1948. Since
last October he has been concerned
principally with administration of
commercial accounts.
Mr. McGarraugh joined the bank’s
credit department in 1941, served in
the navy during the war and was
elected an assistant cashier in 1948.
Mr. Molander started with the bank
in 1936 and currently assists in man
agement of the bank’s bond portfolio
and mortgage department. He has lec
tured at the University of Wisconsin
and University of Minnesota schools
of banking and is a member of the
governmental securities committee of
the Investment Bankers Association.
* * *
Plans to increase vault facilities at
the Marquette National Bank of Min
neapolis were announced recently by
Russell L. Stotesbery, president. Six
new air conditioned coupon booths
and a large private room, suitable for
corporate coupon groups, were to be
ready in April. The 1,600 additional
square feet of basement floor space
needed for the remodeling was ob
tained from Thorpe Brothers, Mar
quette’s neighbor.
* * *
Alex Highland, active in northwest
banking circles for more than 30 years
before his retirement in 1942, died re
cently in Tucson, Arizona, at the age
of 67.
When he retired because of ill
health, he was president of the Empire
National Bank and Trust Company of
St. Paul. At one time he was execu
tive vice president of the First Na
tional Bank & Trust Company of San
Diego, California.
He started his career in 1905 as a
messenger for the Aberdeen National
Bank of Aberdeen, South Dakota; had
been successively half owner of the
First National Bank of Groton, Gro
ton, South Dakota; president of the
Stockyards National Bank of South
St. Paul and its affiliated companies,
and vice president and treasurer of
the Northwest Bancorporation of Min
neapolis.
John N. Peyton, president of the
Federal Reserve Bank of Minneapolis,
offers three guides for monetary and
fiscal policies to halt inflation threat
ening the American economy.
Writing in the bank’s annual report,
Mr. Peyton urged that government
expenditures for military and other
purposes be met to the greatest pos
sible extent by taxation; if securities
are to be issued to finance a treasury
deficit, they should be sold exclusive
ly, if possible, to non-bank investors;
total amount of credit should be re(Turn to page 47, please)
*>
_w
V
<
45
S io u x F a il ft iVeir#
W. BAKER, president of the
. First National Bank & Trust
Company, was elected a director of
the Queen City Fire Insurance Com
pany* * *
C. A. Christopherson, chairman of
the board of the Union Savings Bank,
spoke on “ Signs of the Times” at a
meeting of the Shrine Club.
* * *
Local bank clearings rose from $21,cation of Rapid City, South Dakota,
662,392.97 in February, 1950, to $25,died of a heart attack while leaving
779,623.60 in February of this year.
a sectional basketball tournament.
The increase amounted to 19 per cent.
The well-known business man, who
* * *
also was treasurer of the school board
Ralph M. Watson, president of the
and president of the Cosmoplitan Northwest Security National Bank, an
Club, died at the wheel of his car as nounced the election of Carl E. Voigt
he and his young son were returning as vice president and director of the
home from the high school gymna institution. Mr. Voigt, who had been
sium.
vice president of Northwest BancorHe suffered the attack while driv poration in Minneapolis since 1947,
ing. The car went out of control, side- moved to Sioux Falls April 1st.
swiping three parked cars before col
Also as a result of a recent directors’
liding with a fourth.
meeting, Paul Batcheller was elected a
director of the bank. He is a well
known feed and farm supply dealer
Bank Bond Sales
F. G. Grosz, executive vice president here, president of the Community
and cashier of Bowdle State Bank, Chest and a past president of the
Bowdle, South Dakota, was curious to South Dakota Feed Manufacturing
know the face value of Series E, F and Association.
Adolph Eodmell was advanced in
G U. S. bonds the bank sold since De
cember, 1941, when it first started to the bank from vice president and as
sell bonds. Bowdle is a city of about sistant trust officer to vice president
900 population, surrounded by a good and trust officer.
Charles D. Gregg was named assist
farming and livestock community.
ant
trust officer.
Here are the results:
John P. McQuillen resigned as vice
Sold Face Value Series E ....... $801,350
Sold Face Value Series G ....... 299,600 president, trust officer and director
Sold Face Value Series F ....... 168,175 of the Northwest Security to open
his own law office in the bank build
ing. He practiced law in Sioux Falls
Total .............................. $1,269,125
from 1931 to 1942, and had been with
This does not include any bonds
the bank since July 1, 1946, shortly
sold by post office or National Farm after his discharge from the armed
Loan Association outlets.
foi’ces.
Mr. Voigt, a veteran of World War
1 and a native of James, South Da
J. K. Kurle
J.
K. Kurle, director and chairman kota, was assistant cashier of the
of the board of directors of the Bowdle James Valley Bank at Huron from
State Bank, Bowdle, South Dakota, 1919 to 1924. In 1924 he was named
died last month of a heart failure.
assistant cashier of the National Bank
Mr. Kurle was a former mayor of of Huron, where in the following year
the city of Bowdle and a member and he became cashier. He became man
chairman of the board of education. ager of that bank when it was made
He had been engaged in the farm im a branch of the Northwest Security
plement and lumber business in Bow National Bank in 1935.
* * *
dle for over 40 years. He was also
Tony Westra, agricultural and live
very active in all civic affairs and was
regarded as one of the most valuable stock representative of the Northwest
Security National Bank, was a speaker
men in Bowdle.
W
Air Base Bank
A little over one year ago the air
base branch of the First National
Bank of the Black Hills, Rapid City,
South Dakota, was opened. Now the
branch, under the management of
Miles S. Wilson, is anticipating a
move to new and larger quarters to
more efficiently handle the volume of
banking which has grown by leaps
and bounds.
The bank has been located in out
moded quarters directly opposite the
base theatre.
Land Bank Meeting
Nile C. Kinnick, association service
director of the Federal Land Bank of
Omaha, was the principal speaker at
the Roberts county National Farm
Loan Association’s annual meeting at
Sisseton, South Dakota.
Invitations were sent to association
members and their families.
Leaves Dupree
After being connected with the
Farmers State Bank in Dupree, South
Dakota, for about 15 years, Wm.
Krikac severed his connection with
the bank recently and left for his
new home in Sturgis. Mr. Krikac
still has both land and cattle interests
in Ziebach county.
Remodeling
The First National Bank in Britton,
South Dakota, is having a remodeling
job done on the accounting room in
the rear of the building. The stair
way is being torn out and acoustical
wallboard is to be installed to cut
down the noise from accounting ma
chines.
Harold A. Vipond
Harold A. Vipond, secretary-treas
urer and managing director of the
First Federal Savings and Loan Asso-
T H E N A T IO N A L B A N K O F S O U T H D A K O T A
Huron
Member Federal Deposit Insurance Corporation
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Sioux Falls
Vermillion
Affiliated with FIRST BANK STOCK CORPORATION
Northwestern Banker. April, 1951
46
South Dakota News
at a public forum meeting in the high
school auditorium at Lennox, South
Dakota. The meeting was jointly
sponsored by the adult evening farm
class and two veterans’ on-the-farm
training classes.
* * *
Ross Hunt, vice president of the
National Bank of South Dakota, was
appointed South Dakota district gov
ernor of the Exchange Club. He is
a past president of the Sioux Falls
Exchange Club.
* * *
The Northwest Security National
Bank was successful bidder on a $72,000 bond issue of the South Sioux
Falls board of education. The bid
was at the rate of 1.75 per cent with
$51 premium. Three other local banks
also entered bids.
The bond issue was authorized last
fall for construction of an addition
to the school building. The addition
is well started and is expected to be
ready for opening of the new term
next fall.
* * *
Carl Taylor, director and member of
the executive committee of the North
ern Bank of Milwaukee, which he
helped organize, addressed the Sioux
Falls Knife & Fork Club, speaking on
“Our Priceless Heritage.” Recently
Mr. Taylor organized the Waukesha,
Wisconsin, State Bank, becoming its
first president. His dairy and live
stock farm near Waukesha is said to
be one of the finest in Wisconsin.
Senior Vice President
Ransom M. Cook has been named a
senior vice president of American
Trust Company, San Francisco, ac
cording to an announcement by James
K. Lochead, president.
Mr. Cook began his banking career
S T A T E M E N T OF C O N D IT IO N
NORTHWEST SECURITY
NATIONAL BANK
of S i o u x Falls, South Dakota
South Dakota's Leading Bank
December 30, 1950
R E S O U R C E S
C ash on Hand, in Federal R eserve Bank, and
Due from Banks and Bankers................................................ $11,617,624.26
U. S. Governm ent O bligations............................................... 18,339,054.08
1,171,433.04
State and M unicipal B onds........................................................
Other Bonds an d Securities........................................................
1,634.232.73
R A N S O M M. C O O K
Named senior vice president
A m erican Trust Company
$32,762,344.11
Stock in F ederal R eserve Bank in M inneapolis....................................................
45,000.00
Overdrafts ........................................................................................................................
4,666.06
Loans an d Discounts....................................................................................................... 13,874,174.72
Com m odity Credit Corp., Grain L oans..................................................................
321,866.15
Banking H ouses, Furniture and Fixtures.................................................................
422,396.30
Includes Banking H ouses at Sioux Falls, Brookings, Cham berlain, Dell
Rapids, G regory, Huron an d M adison, all clear of encum brance.
Interest Earned but Not C ollected ..............................................................
201,231.88
TOTAL
..............................................................................................................$47,631,679.22
L I A B I L I T I E S
Capital Stock— C om m on............................................................. $
Surplus ..............................................................................................
U ndivided Profits and G eneral R eserv es..............................
500,000.00
1,000,000.00
542.225.95
R eserve for Interest, Taxes, and Other E xpen ses...............................................
Interest C ollected but Not E arned............................................................................
Deposits:
Time .............................................................................................. $ 7.505,259.19
Dem and ....................................................................................... 37.074.688.38
U. S. W ar L oan............................................................................
658.051.17
$ 2,042,225.95
216,457.07
134,547.46
$45.238,448.74
TOTAL
..............................................................................................................$47.631.679.22
BRANCHES AT
BROOKINGS, CHAMBERLAIN, DELL RAPIDS,
GREGORY, HURON, MADISON
Affiliated with Northwest Bancorporation
Member Federal Deposit Insurance Corporation
Northwestern Banker, April, 1951
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
at Portland, Oregon, and joined the
foreign department of American Trust
Company in 1921. where he later spe
cialized in the marketing of bankers
acceptances. After several years of
experience in all phases of banking
he was appointed vice president and
manager of one of the bank’s country
branch offices.
In 1934 Mr. Cook established Ameri
can Trust Company’s office at Sacra
mento.
Mr. Cook moved to San Francisco
in 1940 as vice president and during
the last war he handled the bank’s
extensive V-Loan program. Since that
time he has been identified with the
bank’s commercial loan activities. In
his new capacity, he will also super
vise the foreign banking department.
Having done considerable traveling in
the bank’s interest, Mr. Cook has a
wide acquaintance among bankers.
47
president of the American
Trust Company, South Bend, Indiana;
William (). Heath, vice president of
the Harris Trust & Savings Bank of
Chicago; William D. Hall, vice presi
dent of the Detroit Bank, Detroit, and
S. H. Chelsted, vice president of the
People’s First National Bank & Trust
Company of Pittsburgh.
* =1= =t=
J. Cameron Thomson, president of
the Northwest Bancorporation, served
as general chairman of the 1951 Farm
Forum sponsored by the Minneapolis
Chamber of Commerce.
* * *
Louis S. Headley, recently retired
president of The First Trust Company
of St. Paul, St. Paul, Minnesota, has
been named head of the trust faculty
of The Graduate School of Banking
by Dr. Harold Stonier, director of the
School. The announcement was made
at the annual spring meeting of the
School’s faculty, held in the Hotel
Biltmore in New York last month.
Mr. Headley, long a close associate
of Gilbert T. Stephenson, succeeds to
the post as head of the G.S.B. trust
faculty held by Mr. Stephenson since
the inception of the school in 1935.
thews,
> o r l II H a k o l a
N EW S
G. A . K LEFSTA D
President
Forman
Convention Coming
Plans are going forward for another
tip top convention of the North Da
kota Bankers Association, to be held
in Fargo on May 25th and 26th. As
usual, headquarters will be at the
Hotel Gardner.
The hotel reservation committee
consists of W. R. Braseth, chairman,
Fargo National Bank; H. L. Johnson,
Dakota National Bank; George W.
Johnson, First National Bank, and R.
C. Harrington, Merchants National
Bank.
It is suggested that hotel reserva
tions be made as soon as possible.
H. D. Crosby, president of the First
National Bank, is general chairman
for the convention.
Soil Conservation
The handbook containing the rules
and regulations of the 1951 Soil Con
servation Achievement program for
county committees has been sent to
the members of the state and county
committees of this program. Each
Greater North Dakota Association
county director is the chairman of his
own county soil conservation achieve
ment program committee which in
cludes besides himself, members ap
pointed by the North Dakota Bankers
Association, the North Dakota Press
Association, the local county agent,
the district conservationist or work
unit conservationist appointed by him
and the chairmen of the county soil
conservation districts in the county.
County meetings will be held at the
call of the county director and re
ported to headquarters. This action
on the part of county committees in
sures an early start on the 1951 pro
gram.
Test Seed
A warning to farmers to test germi
nation qualities of grains, and espe
cially wheats, is voiced by a number
of agencies, governmental and pri
vate.
There are two explanations for poor
germination — frost injury and seed
being binned last fall with high mois
ture content. There is no way of de
termining germination qualities ex
cept by actual test, it is reported.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
C. C. WATTAM
Secretary
Fargo
In addition to testing for germina
tion, such agencies as the North Da
kota Agricultural College extension
service and the experiment station
urge use of fungicides before planting,
not only for cereal seeds, but also for
grass seeds, alfalfa, sweet clover and
soybeans. Fungicides, controlling dis
ease and decay, aid in germination.
Germination tests can be made on
the farm or lots of grain can be sent
to the State Seed Department, Fargo.
Special reasons for giving extra care
in selection and preparation of seeds
include the national emergency, the
continuing good market for grains,
and the drouth losses suffered by
grain farmers in the south central part
of the country.
TW IN CITY NEW S
(Continued from page 44)
stricted in order that future income
cannot be used to purchase goods
when demand is already inordinately
high.
These measures, he said, would help
withdraw from circulation the income
earned in production of defense goods
and would hold down the spending
stream to the limited supply of civil
ian goods available.
* * *
Emmett J. Erickson, assistant treas
urer of the Farmers & Mechanics
Savings Bank of Minneapolis, has
been nominated for a position on the
national executive c o u n c i l of the
American Institute of Banking by the
Minneapolis chapter. The election will
be held at the annual convention of
the AIB in Pittsburgh in June. Mr.
Erickson was president of the Minne
apolis chapter in 1942 and served on
the board of governors from 1939 to
1944.
* * *
Speakers at the conference of the
Financial Public Relations Association
in Minneapolis recently included Hugh
J. Bernard, Houston, Texas, associa
tion president, and S. G. Gale, vice
president and advertising director of
General Mills, Inc. Mr. Bernard is
vice president of the Second National
Bank of Houston.
Other speakers were L. L. Mat
Elects Maxwell Silver
E. Chester Gersten, president of The
Public National Bank and Trust Com
pany of New York, has announced
that Maxwell Silver of the public re-
M A X W E L L S IL V E R
N ew vice president of
P u b lic N ational Bank
lations staff has been advanced from
assistant vice president to vice presi
dent. Also that Harold C. Beppler
of the credit department at the main
office has been advanced to assistant
cashier.
N orthwestern
Banker, Apri l , 1951
48
F o r 95 Y ears
SOUND
BANKING SERVICE
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Northwest ern Banker, April, 1951
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
49
Receives Award
N e b r a s k a
N EW S
E A R L H . W IL K IN S
President
Geneva
Honor 4-H Leaders
One hundred and twenty-five per
sons attended the recent 4th Annual
Dinner honoring 4-H Leaders in Blair,
Nebraska, sponsored by the Washing
ton County Bank of Blair. This is
triple the attendance at the first meet
ing and is evidence of the growing
interest in the young men and women
who assume the responsibility for di
rection of local 4-H activities.
George T. Hedelund, vice president
of the Washington County Bank, or
ganized the annual dinners so these
leaders could be given deserved rec
ognition. Awards are presented at
the meeting to those with several
years of service and also for special
accomplishments. It used to be diffi
cult to get men and women to take
on the job of leader, says Mr. Hede
lund, but now there is a waiting list.
The recognition afforded by these an
nual banquets is undoubtedly an in
centive, he believes.
Two leaders received 4-H gold but
tons for 15-year service, one was hon
ored for 10 years of service, and 27
others recognized for two or five years
of service.
Mr. Hedelund presided over the
meeting, which included the awards
presentations, a talk by Mai Hansen,
farm service director of Station WOW
in Omaha, and local entertainment.
The Washington County Bank also
furnishes the 4-H magazine free to
all 4-H leaders in Washington county.
C A R L G. SW A N SO N
Se cretary
Omaha
Richard L. Baxter and Elsie E. Schipman, assistant cashiers.
Cozad
Following a change in officers of the
Cozad State Bank, Cozad, Nebraska,
the bank is staffed as follows:
C. T. Young, president; W. E. Young,
vice president; C. H. Richey, promoted
from assistant cashier to cashier, and
Robert W. Bredwell, promoted to as
sistant cashier.
Remodeling Completed
With the installation of the office
furniture the Citizens State Bank of
Pawnee City, Nebraska, has completed
the redecorating and remodeling of
the bank building.
Walls and woodwork of the bank
have been painted, an asphalt tile floor
laid, a new ceiling put on and fluores
cent lights installed.
Office fixtures, counter and teller
windows are all of walnut, as is the
office furniture.
One of the changes made from the
former arrangement is a small area
partitioned off in the southwest corner
of the main room that provides pa
trons a private place to open and use
their safe deposit boxes.
Change at Palisade
Mrs. A. J. Baxter was elected vice
president of the Frenchman Valley
Bank, Palisade, Nebraska, to fill the
vacancy in this position, following the
purchase of full interest in the bank
last February by its officers, who are
now as follows: A. J. Baxter, presi
dent; Margaret E. Baxter, vice presi
dent; Viron E. Baxter, cashier, and
Irrigation and livestock were the
topics for a farm meeting in Hastings,
Nebraska, March 28th.
Sponsoring the clinic were the City
National Bank of Hastings, the Adams
County Bank of Kenesaw and the
Roseland State Bank.
The meeting was held in the city
auditorium. Besides irrigation and
livestock, other subjects of interest to
farmers were discussed by agricultur
al specialists, including improved pas
tures through a livestock program,
fertilizers, farm leases, grass and seed
production, pasture management and
watershed treatment.
Closing the meeting was a panel
discussion by farmers.
All farmers in the area were invited
to attend the meeting, which was pre
sented in cooperation with the exten
sion service of the College of Agri
culture.
Host banks served a free lunch at
noon.
Here are the dates and meeting pi.ices for the 1951 Group Meetings of the Nebraska Bankers Association. The Group Meeting
Special Train will leave the Union Pacific station in Omaha at
8:35 a. m. on Monday, April 23rd, and will return to Omaha the
evening of Friday, April 27th.
G roup
2
3
5
6
4
1
rhe banking fraternity. They are available to you, along
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Meet in Hastings
N e b r a s k a G r o u p M e e t in tjs S c h e d u l e
Scarborough s planning and service are by-words in
with the broadest protection at the lowest cost.
Retiring Beatrice, Nebraska, Cham
ber of Commerce President Harold
Deitemeyer recently received the Bea
trice Junior Chamber Outstanding
award for 1950.
The award was announced at the
annual dinner meeting of the Cham
ber of Commerce, an event attended by
upward of 400 citizens.
Mr. Deitemeyer, vice president and
cashier of the First National Bank, is
a member of St. John’s Lutheran
Church, retiring Chamber president,
chairman of the bank management
committee of the Nebraska Bankers
Association, a director of the Y.M.C.A.,
and a World War II veteran.
D a te
Monday,
Monday
Tuesday,
Wednesday,
Thursday,
Friday,
M e e ti n g P la ce
April
April
April
April
April
April
23
23
24
25
26
27
Columbus
Norfolk
Lexington
Alliance
Holdrege
Lincoln
S ca rb o ro u g h &
Counselors to Banks
C o m p a n y Insurance
"
FIR S T N A T I O N A L B A N K B U IL D IN G • C H IC A G O 3, IL L IN O IS . STcte 2 -4 3 2 5
Northwestern Banker, April, 1951
50
LOW bid of l.l per cent interest
on $555,000 worth of municipal
bonds was accepted recently by the
Omaha City Council.
The bid was submitted jointly by
the First National Bank of Chicago
and the City National Bank and Trust
Company of Kansas City, Missouri.
Nine bids were received.
There are three separate bond is
sues in the total:
Fire equipment bonds, $100,000.
Sewer bonds, $250,000.
City auditorium bonds, $205,000.
The low bid was one-tenth of one
per cent below the low bid accepted
last year on the arterial highway bond
issue.
The other eight bidders on the cur
rent issues all quoted the same inter
est rate, 1.2 per cent.
* * >i=
Chris .1. Abbott, Hyannis, Nebraska,
banker and rancher, has been re
A
elected a director of the Mutual Bene
fit Health and Accident Association of
Omaha, one of the companion com
panies. W. A. Patterson, president of
United Airlines, was another director
renamed.
The companion United Benefit Life
Insurance Company re-elected to its
board James P. Lee, Omaha & Council
Bluffs Street Railway Company exec
utive and former Omaha banker.
* * *
Harold Sears of the National Com
pany of Omaha has been elected pres
ident of the Nebraska Investment
Bankers Association. He succeeded
Ferdinand Smola.
Other new officers include Cecil
Slocum, first vice president; Warren
Chiles, second vice president; John
Redelfs, third vice president; Bert
Heed, fourth vice president; Marshall
Barlow, secretary, and Harold Helme,
treasurer.
fORTHf
j
1k
'
0 S eries
fecuthes Assn.
'
1
At the annual meeting in Omaha
the association heard a talk by Don
Pettis on “Tax Trends.”
* * =f=
The Treasurer of the United States,
Mrs. Georgia Neese Clark, and Lieut.
Gen. Curtis E. LeMay, Commanding
General of the Strategic Air Com
mand at Offutt Air Force Base near
Omaha, both had a prominent part
in the formal opening of the new Bank
of Bellevue at Bellevue in the Omaha
suburban area, March 17th, St. Pat
rick’s Day.
Under construction since last sum
mer, the bank gives Bellevue, Nebras
ka’s first territorial capital, its first
banking institution since the 1850’s.
Distinguished guests invited in
cluded Governor Val Peterson of Ne
braska, United States Senator Hugh
Butler of Nebraska, whose home is at
Omaha; .1. F. McLain, Nebraska bank
ing commissioner, and Kenneth G.
Harvey, president of the Omaha Cham
ber of Commerce. Mr. Harvey also
is president of the Douglas County
Bank of Benson in the Benson area
of Omaha.
Mrs. Clark cut a green ribbon open
ing the doors of the bank at 10:00 a. m.
Before that ceremony, the honor
guests were welcomed at a program
in a theatre adjoining the new bank
building.
Bellevue business men wore green
ties in honor of the occasion and to
mark St. Patrick’s Day. Stores were
decorated in green.
The bank was to hold open house
during the entire day, according to
Hugh W. Campbell, vice president.
Special tours of Bellevue historic
spots, including the first Presbyterian
Church building in Nebraska, were
also planned. Souvenirs were to be
given all visitors.
Charles S. Heed, Omaha attorney,
heads the bank and was instrumental
in its organization.
* * *
Omaha banks increased their busi
ness done by check during the first
two months of the year by 49 per cent
over a year ago, the Tenth Federal
Reserve District reported.
Average increase for 40 banks in
cluded in the tabulation was 30 per
cent.
* * *
The Northwestern Bell Telephone
Company has increased its authorized
ADVERTISING AWARD— Karl Joens, left, of the Allen & Reynolds advertising
agency of Omaha; Tom Devaney, center, Omaha World-Herald, and Ellsworth
Moser, president of the United States National Bank, Omaha, are all happy about
the first place award from the Midwest Newspaper Advertising Executives Asso
ciation, based on the “ Most Usable Advertising Idea,” rvhich in this case was
a series of advertisements of the United States National Bank, prepared by the
Allen & Reynolds Agency. Three hundred campaigns from 32 newspapers in seven
states were submitted to the judges.
Nort hwest ern Banker, April, 1951
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
capital stock from $175,000,000 to $225,000,000.
The action was taken by stockhold
ers at their annual meeting in Des
Moines.
* * *
At a victory dinner to celebrate the
enrollment of 17,344 members of AkSar-Ben, Omaha civic organization, the
(Turn to page 52, please)
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Federal Reserve Bank of St. Louis
51
IF IT PERTAINS Til LIVESTOCK
W E CA N S E R V E Y O U "
S tock Y a rd s N a tio n a l B a n k
Omaha, Nebraska
M EM BER O F FED ER A L D E P O S IT IN S U R A N C E C O R P O R A T IO N
Northwest ern Banker, April, I9S1
52
Nebraska News
(Continued from page 50)
largest membership in its history,
guests included the Queen of Ak-SarBen, Miss Gertrude Stewart, and J. F.
McDermott, senior vice president of
the First National Bank of Omaha
and long-time worker for Ak-Sar-Ben.
Mr. McDermott recently returned to
his desk after a major operation. Miss
Stewart is the daughter of J. T. Stew
art, III, also senior vice president of
the First National Bank of Omaha.
In the ranking of teams, the one led
by Ak-Sar-Ben Governor AV. B. Millard
and Willard Hosford, Jr., ranked sev
enth, with 1,355 members.
* * *
Herbert J. Young of the trust de
partment of the First National Bank
of Omaha spoke recently before the
Omaha Cosmopolitan Club at the Cas
tle Hotel.
=!= * *
Mrs. Janies Gleason has been named
advertising manager of The Omaha
National Bank. Mrs. Gleason has been
associated with the public relations
department of the bank since 1947 and
CUMMINS ELECTRIC
CHECK ENDORSER
M RS. JAM ES G LE A SO N
Named advertising m anager of
Omaha N ational Bank
CUMMINS
ELECTRIC
CHECK
CANCELLER
Desk Model
Trouble Proof—
Fast— No
Operator Fatigue!
------- -★ ---------
M. I. (Bud) GREENSPAN
BUSINESS MACHINES &EQUIP. CO.
is editor of the employe magazine,
“Around the Bank.”
After her graduation from college,
she had three years of postgraduate
work at the Sorbonne in Paris and
took her Master’s Degree at the Uni
versity of Chicago. She has a wide
acquaintance in local advertising cir
cles.
* * *
Alvin E. Nelson, 57, assistant cash
ier in the personal loan department
of the Stock Yards National Bank, died
recently at an Omaha hospital. He
had been associated with the bank
for 38 years. He was a member of the
Masonic Lodge.
MINNEAPOLIS: 2728 Second Ave. South
OMAHA: 208 Patterson Bldg.
5{C
Harry E. Rogers, assistant vice pres
ident of the United States National
Bank of Omaha, retired recently un
der the bank’s pension program.
Mr. Rogers headed the bank’s in
stallment loan department for 13 of
its 15 years.
President Ellsworth Moser of the
bank announced that Elmer A. Wenberg and Kurt J. Buck will be co-managers of the department. Mr. Rogers
was associated with the bank for 40
years. He had been assistant vice
president since 1940.
* =i= *
Arthur R. Larsen, an employe of
the Stock Yards National Bank of
Omaha for 22 years, has been elected
assistant cashier.
Mr. Larsen began with the bank as
a messenger boy.
His election to the assistant cashier
post was announced by W. A. Sawtell,
president of the bank.
* * *
Mr. and Mrs. Guy C. Kiddoo of Winnetka, Illinois, former Omahans, spent
several days at the Blackstone Hotel
recently. Mr. Kiddoo is a former
Omaha bank executive.
* * *
At a banquet recently in Omaha’s
Fontenelle Hotel, when \YT. O. Swan
son, Omaha clothing store head, was
honored by the National Conference
of Christians and Jews for “actively
fostering brotherhood and human un
derstanding,” the citation was pre
sented to him by Dale Clark, chairman
of the board of the Omaha National
Bank. Mr. Swanson is co-chairman
of the Omaha Chapter of the National
Conference.
* * *
An Omaha woman, as a gesture of
appreciation for “courtesy at the coun
ter,” sent a five-pound box of candy
recently to eight girls employed in the
savings department of the United
States National Bank of Omaha.
* * *
Airs. Bulah Meile, 71, wife of B. H.
Meile, former vice president of the
Omaha National Bank and mother of
Herbert Meile, vice president of the
Douglas County Bank of Omaha, died
IN ST. JO SEPH
No Other Bank Gives You
MORE* fo r YOUR MONEY
Than the
TO O TLE-LA CY
Northwestern Banker. April, 1951
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
Nebraska News
recently at Parker, Colorado. Three
other sons and a daughter also sur
vive.
* * *
A veteran of more than 25 years of
social welfare work, Daniel J. Monen,
was chosen president of the United
Community Services of Omaha at the
recent annual directors’ meeting. Mr.
Monen is vice president of the Omaha
National Bank. He is a graduate of
Creighton University Law School.
Edward W . Lyman, vice president
of the United States National Bank of
Omaha, was named vice president of
the United Community Services.
Among those elected to the board of
directors were Mr. Lyman and John
F. Davis, senior vice president of the
First National Bank of Omaha, threeyear terms, and Mr. Monen and Ed
ward F. Pettis, former Omaha banker,
two-year terms.
Gift to Scouts
A tract of four and a fraction acres
in size on a farm owned by H. P.
Haessler, cashier of the Leshara State
Bank, Leshara, Nebraska, has been
given by him to the Trinity Lutheran
Church scout troop. The tract is a
timber land. Mr. Haessler is a mem
ber of the congregation.
Minnesota, told the audience “ What’s
New in Swine Feeding and How Can
I Use It.” A native Minnesotan, Dr.
Hanson, was on the animal husbandry
staff for 10 years at Nebraska after
studying swine feeding methods in
Europe, particularly in Denmark. He
is a recognized authority in this field
and provided his audience with much
technical data and feeding formulas
to produce hogs most efficiently.
Eating Habits Changed
The windup speaker on the program
was Howard J. Gramlich, general agri
cultural agent for the Chicago and
Northwestern Railway System, who
lives in Chicago. Mr. Gramlich spiced
his “Current Cattle Comment” talk
with numerous and humorous stories
that ended the meeting in a light vein.
Mr. Gramlich also referred to the
change in the public’s eating habits.
He said a quick visit to any hotel,
restaurant, railroad dining car or pri
vate residence would confirm his state-
5th Anniversary
The Springfield, Nebraska, State
Bank marked its fifth anniversary re
cently.
Deposits have increased from $193,000 on the first day to $763,000 re
ported a short time ago. The capital
structure has advanced from $35,000
to its present figure of over $48,000.
Taylor Jarman is president, Otto
Nielsen is vice president, and C. R.
Caley is cashier.
"FARM C LIN IC" A SU CCESS
(Continued from page 18)
Klemme stated, “ That’s why I am
definitely ‘bullish’ about the long run
outlook.”
Dr. L. E. Hanson, professor of ani
mal husbandry at the University of
53
ment that more people today want
lean meat, and fat is being thrown out
with the waste.
He said his advice would be the
same as the policy followed by range
ranchers who won’t sell cattle as a
rule until fall so they can put on
weight quickly by grass feeding. Since
people want meat the year around,
stated Mr. Gramlich, the corn farmer
has a ready market for his cattle at
his own convenience. He also urged
farmers to make their own silage,
which can be done cheaply with the
farm machinery they now own.
Mr. Gramlich’s talk completed a day
of extreme interest on the part of the
hundreds of farmers in attendance.
At the conclusion of the meeting there
were many favorable comments.
Mr. Stout said he felt it was the
finest public relations work his bank
had ever undertaken and is one that
could be beneficial in any locality to
the bank and its customers alike.—
The End.
M i+tc& U t—
*7lte C tm tu te n ia l—
H e a d q u a rte rs tor
q u i c k a n d e f f ic ie n t s e r v ic e
in L in c o ln
(jD N T J N E N T A L R A T I O N A L
¡¡55»
Ba/ k
°f-
L IN C O L N
Member Federa] Deposit Insurance Corporation
*MORE personal service — *MORE types oi service — ‘ MORE
friendliness — ‘ MORE people who are interested in you.
NATIONAL BANK
E. H. SCHOPP
ASST. VICE PRES.
E. L. CRUME
ASST. VICE PRES
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Federal Reserve Bank of St. Louis
MILTON TOOTLE, IR.
ASST. CASHIER
GILBERT TOOTLE
ASST. CASHIER
S T. JOSEPH, M 0.
A . E. LA ROUFF
AUDITOR
Member Federal Deposit
Insurance Corporatism
Northwest ern Banker, April, 1951
54
INCOLN bank clearings for the
month of February totaled $32,250,582.22. This compares with $25,481,-
L
899.07 for the same month last year.
January - February totals for this
year showed an increase of $15,711,-
S O H l Û n m v& A A W ii^ (ijsuaA^
We Are Looking Forward to
Seeing You at the Group
Meetings of the
Nebraska Bankers Association
THE FIRST NATIONAL BANK OF LINCOLN
LINCOLN, NEBRASKA
M em b er F ed era l D e p o sit Insu rance C orporation
090.38 over a similar period for last
year. The two-month total for 1951
is $70,621,220.70 as compared with $54,910,130.31 for 1950.
February clearings for each year
were less than for January, but gained
this year over 1950. The January to
tal for 1951 of $38,370,638.48 compares
with $29,428,231.24 for the same month
in 1950.
* * *
Recently the National Bank of Com
merce, Lincoln, had its First Annual
Correspondent Bank Forum. Invita
tions were sent to all the correspond
ents of the bank and three hundred
b a n k e r s throughout Nebraska ac
cepted the invitation. It was a oneday forum, with registration from
9:00 to 10:00 in the morning. The pro
gram started at 10:00 and was packed
full of down to earth information on
every-day problems in a bank. Each
speaker was given 30 minutes to de
liver his talk and an additional 15 min
utes for a question and answer period.
John W . Johnson of the wage and
hour division at Kansas City, Missouri,
started off the program with a talk on
“Wage and Hour.” He also got into
the discussion of the new wage hour
freeze.
Albert A. Held, executive vice presi
dent, National Bank of Commerce,
talked on making loans on life insur
ance policies.
I). W. Woolley, vice president, Fed
eral Reserve Bank, Kansas City, talked
on “ Regulation ‘W ’ and Regulation
‘X ’ ”
After lunch Carl 1). (ianz, vice presi
dent, National Bank of Commerce,
talked on “ Chattel Mortgages” and
started a lively discussion afterwards.
The next speaker was Melvin Todd,
first vice president of the Cornbelt
Live Stock Feeders Association, who
discussed with the group live stock
feeding and the impending legislation
on agriculture.
The next speaker, L. M. Schwartz,
executive vice president, Citizens State
Bank, Paola, Kansas, talked on “ Cus
tomer Relations.” After this, Byron
Dunn, president of the National Bank
of Commerce, summed up the day’s
proceedings and conducted a question
hour.
At 5:30 the delegates attended a so
cial hour and at 6:30 a dinner. After
dinner William E. Phiefer, Jr., D.D.,
of the Central Presbyterian Church of
Kansas City, Missouri, gave a very en
tertaining and inspiring talk entitled
“The Man for Tomorrow.”
YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE. VAULT AND
TIMELOCK EXPERTS
F. E. DAVENPORT & CO.
OM AHA
N o r t h w e s t e r n B a n k e r, A p r i l , 1951
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Federal Reserve Bank of St. Louis
s.
4
A
Nebraska News
55
De Maio Appointed
John J. L. Dennen, pioneer in the
field of foreign remittance, has retired
from his position as assistant vice
president of American Express Com
pany and the American Express Com
pany, Inc.. Ralph T. Reed, president,
has announced. As his successor, Mr.
Reed appointed Vincent De Maio to
the position of assistant vice presi
dent. Mr. De Maio formerly was man
ager of the service division of the
American Express foreign remittance
and exchange department.
Mr. Dennen, who began his career
with American Express in 1900 as a
sorting clerk in the waybill depart
ment, was the originator of the foreign
money order, for the transmission of
funds to foreign countries by mail and
cable. The business he had pioneered
weathered two world wars and a
world-wide depression and today con
tinues as a major activity of American
Express.
FORUM—A view of a part of the delegates attending the National Bank of
Commerce First Annual Correspondent Bank Forum in Lincoln.
W. W. Woolley, vice president, Federal Reserve Bank, Kansas City, is address
ing the group on Regulations X and W.
Q jtw sudiqajtsi
A d d re s s o jra p h
d ite m i
S a v in x fA ,
A ddressing b y hand or typ e
writer method costs 10 times as
much a s the modern Addressograph method.
the Nebraska Group Meeting
April 23 to April 27
See our representatives
Carl Ganz, Vice President
Glenn Yaussi, Vice President
A d d ressoa ra p h
TPAOf MARK PEG US
PAT o l
rm m J
I
O M A H A — DES M OINES
DAVENPORT
NATIONAL BANK of COMMERCE
LIN CO LN , NEBRASKA
49 Y e a r s at 13th and O Stree ts
Home of C om ple te Banking Servic e
BANKS
Organ ized Aug. 4, 1902
Bought and Sold
Confidentially and with becoming d ign ity
BANK
EM PLO YEES
P L A C ID
4& Years Satisfactory Service
C H A R LE S E. W A LTERS CO.
O M A H A , N EB RA SKA
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Federal Reserve Bank of St. Louis
Northwestern Banker, April, 1951
56
À
Nebraska News
imttrintf N a tion a l lg Svtd
A. N. Mathers, who has piloted the
Gering National Bank, Gering, Ne
braska, for 41 years, last month sold
the controlling stock to former Ne
braska Governor Dwight Griswold,
who became president and active man
ager.
Approximately a quarter of a mil
lion dollars was involved in the sale.
J. G. Elliott, Scottsbluff insurance
man, and Brigadier General Warren
Wood of Gering, assistant commander
of the 34th Division of the Nebraska
National Guard and publisher of the
Gering Courier, are associated with
Mr. Griswold in the purchase. Mr.
Mathers retained some stock and will
continue as chairman of the board of
directors. The sale was negotiated by
Bankers Service Company, with offices
at Des Moines, Iowa, and Colorado
Springs, Colorado.
In announcing the sale Mr. Math
ers, who is nearing his 70th birthday,
said 40 years at his desk had sapped
his strength and his health had been
impaired d u r i n g recent months.
Through the years he has been domi
nant in the policies which have made
the bank an outstanding success but
he also found time to engage in other
activities. He was the first mayor of
Gering, a leader in the development
OFFICERS
G. E. Porter
Chairman of the Board
J. A . Greenfield
President
T . J. McCullough
Vice President
M. E. Blanchard
Cashier
H. H. Broadhead, Jr.
Assistant Vice President
L. J. K om er
Assistant Cashier
Northwest ern Banker, April, 1951
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
of irrigation and past president of the
State Irrigation Association, past pres
ident of the Valley Chamber of Com
merce, f o r m e r representative and
D W I G H T P. G R IS W O L D
N ow controls
G ering N ational Bank
speaker of the house in the Nebraska
legislature, and in 1930 was president
of the Nebraska Bankers Association.
His advice and counsel will be valuble to the new owner.
Dwight P. Griswold was governor
of Nebraska f r o m January, 1941,
through 1946. He is well versed in
the banking business. His father, D.
H. Griswold, homesteaded near Harri
son in Sioux county, Nebraska, before
the railroad arrived and operated the
first bank in Harrison from 1890 to
1900. Later the elder Griswold moved
to Gordon, Nebraska, and was presi
dent of the First National Bank until
his death in 1928. Dwight Griswold
kept books in the bank during sum
mer vacations while attending school,
later became assistant cashier and
after two years of service in World
War I was made cashier, serving in
that capacity for eight years. He then
purchased the Gordon Journal and
served as its editor and publisher
while remaining as chairman of the
board of directors of the bank, the
largest on the Northwestern Railroad
west of Norfolk and about the same
size as the Gering National, whose
last published statement showed total
assets in excess of five million dollars.
Governor Griswold is past president
of the Nebraska Press Association, a
past state commander of the American
Legion and was appointed by Presi
dent Truman to head the American
mission for aid to Greece following
the end of World War II. He moved
to Scottsbluff about a year ago.
A
Assistant Sales Manager
Our Special Background
Through the long experience of our
officers in the livestock industry, this
bank is especially adapted to help
you and your customers in the pro
duction and marketing of live stock.
Any bank located in the St. Joseph
market area can make valuable use
of our facilities. W e invite you to use
them.
Otis A. Kendall has been appointed
assistant sales manager for tabulating
machines, management controls divi
sion, Remington Rand, Inc., it was an
nounced by H. W. Millang, accountingtabulating sales manager.
-V
District Manager
The St. Paul Terminal Warehouse
Company has appointed George V.
Mickelsen as district manager in its
Des Moines office, according to an an
nouncement by R. C. Schall, vice presi
dent of the company. Mr. Mickelsen
will represent the company in Iowa,
northern Missouri, and western Illi
nois.
Mr. Mickelsen, a native of Northfield,
Minnesota, served four and one-half
years with the 34th Division in the
H EN RY H
BYERS
President
BANKERS SERVICE CO., IN C
BOX 1435
•
DES MOINES 5 IO W A
•
TELEPHONE 1-7800
y.
y
Nebraska News
European Theater, and became asso
ciated with the St. Paul Terminal
Warehouse Company in 1948, follow
ing his graduation from the Univer-
pied new and enlarged facilities in
Chicago. More than $600,000 is in
vested in the total program to date,
according to A. Richard Todd, execu
tive vice president in charge of manu
facturing.
“Aim of the decentralization plan,
which has been greatly accelerated
since heightened international tension
has raised the possibility of enemy
attacks, is to provide Todd check cus
tomers in any part of the country with
57
ten independent sources of supply,”
Mr. Todd said.
Until recently the nine Todd branch
plants have been limited in the kinds
of printing they could do and the
types of check they could manufac
ture. When the expansion and decen
tralization program is completed, each
branch will duplicate as closely as
possible facilities of the main plant
in Rochester, so that each branch can
operate independently.
the Simplified
No Minimum
Balance
C heck Plan
U nited States Check B ook Company
OMAHA
1311 HOWARD ST.
G E O R G E V . M IC K E L S E N
N ew D istrict M anager, St. Paul Term inal
W arehouse, D es M oines
THE I O WA GROUP
sity of Minnesota with a bachelor of
science degree from the college of
education.
With St. Paul Terminal, Mr. Mickelsen has been servicing accounts in
Minnesota, North Dakota, Upper Mich
igan and Missouri. He is married and
has one daughter.
IO W A M U T U A L INSUR AN C E COM PANY
Since 1900
IO W A M U TU AL C A SU A L T Y COM PANY
Guard Against Attack
An intensified program of branch
plant expansion and decentralization,
aimed at safeguarding its customers’
sources of supply against possible
enemy attack, has been announced by
the Todd Company, Rochester, New
York, manufacturer of protected, in
sured checks.
The program gained new impetus
on April 1st, when the company occu-
i
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Federal Reserve Bank of St. Louis
DeWiit. Iowa
Multiple Lines — Non-Assessable Policies
Agency Companies
irst National
B a n k of Omaha
Oldest National Bank From Omaha W est
Mem be r
F ed era l
Deposit
In su ra nc e
C or p or a tio n
Northwestern Banker, April, 1951
58
LIVE STOCKS-BANK
O M A H A ,
T H E
B A N K
M em ber
of
Northwestern Banker. April, 7951
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
OF
F ed eral
N E B R A S K A
F R I E N D L Y
R eserve
and
F ed eral
2 4 - H O U R
D e p o s it
In su ra n c e
S E R V I C E
C o r p o r a tio n
59
Elected President
I <» h a
N E W S
J. H . PULLM AN
President
Sidney
Joins Mt. Ayr Bank
Raj- Jayne, formerly vice president,
Decatur County State Bank of Leon,
Iowa, from which position he resigned
January 1, 1951, was made cashier of
the Security State Bank, Mount Ayr,
Iowa, at the last regular board meet
ing, according to H. M. Ross, president
of Security State.
New Officers
R. M. Whitehead has been elected
executive vice president and cashier
of the Ainsworth State Bank, Ains
worth, Iowa. Other promotions were
those of Cleo Orris and Virgil Hering
as assistant cashiers.
With Alton Bank
E. S. Kiernan, cashier of the Alton
Savings Bank at Alton. Iowa, reports
a new addition to the bank staff. Miss
Aclele Jungers, who is in the book
keeping department. Miss Jungers is
a recent graduate of St. Mary’s high
school at Alton.
Riverside Bank Sold
Last month Iven H. Cummings,
president of the Peoples Trust & Sav
ings Bank of Riverside, Iowa, sold his
stock in the bank, together with his
home in Riverside and his insurance
business to G. B. Kirchner of Britt.
Iowa. Mr. Kirchner assumed Mr. Cum
mings’ position as president and his
son, Don F. Kirchner, was elected to
the position of cashier.
State Bank Changes
The following changes have taken
place in the status of Iowa chartered
banks, according to Newton P. Black,
superintendent of the Iowa Depart
ment of Banking:
Guaranty Bank & Trust Company,
Cedar Rapids, increased capital from
$200,000 to $400,000 by a stock divi
dend.
Delhi Savings Bank. Delhi, in
creased capital from $20,000 to $30.000
by sale of new stock.
Buffalo Savings Bank, Buffalo, in
creased capital from $15,000 to $30,000
by a stock dividend.
Central State Bank, State Center, in
creased capital from $60,000 to $75,000.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
FRANK W A RN ER
Secretary
Des Moines
Preferred stock of $30,000 was retired.
Common stock was increased $45,000
by a stock dividend.
Miles Savings Bank, Miles, increased
capital from $30,000 to $60,000 by a
stock dividend.
25th Anniversary
The Jefferson State Bank of Jeffer
son, Iowa, celebrated its 25th anniver
sary last month with an open house
for its customers and friends. Despite
inclement weather, 3,000 people passed
through all departments of the bank
and during rush periods a line was
formed outside the bank waiting en
trance. Great interest was shown in
a 25-inch birthday candle, with all
visitors contesting over the length of
time the candle would burn. Many
visitors examined carefully displays
of United Nations currencies and early
Iowa bank notes furnished by Chase
National Bank of New York for the
occasion, and also a display of coun
terfeit bills furnished by the FBI.
At a dinner in the evening, R. H.
Maloney, executive vice president;
Thelma I. McClure, assistant cashier,
and Albert J. Robertson, director,
were honored for their 25 years of
service to the bank with appropriate
gifts. W. H. Brenton, president and
director, and G. C. Kelly, vice presi
dent and director, also completed 25
years with the bank.
Leo O’Brien has been elected pres
ident of the Security State Bank at
Independence, Iowa, to succeed his
brother, R. J. O’Brien, who passed
away last fall. Howard D. Rawson
and Clyde Elliott were elected as new
directors to fill the vacancies caused
by the death of R. J. O’Brien and the
resignation of Roger L. Wheeland,
who is now associated with the New
ton National Bank.
Arthur A. Satterlee is vice president
and John Corcoran. Jr., is cashier.
George F. Schilling
George F. Schilling, 87, died at Mu
nicipal Hospital, Tampa, Florida, re
cently. He had been spending the
winter in Florida as usual in past
years.
He helped organize Central State
B a n k , State Center, Iowa, which
opened January 2, 1902, was elected
a director and served continuously for
nearly 50 years since its organization.
He was in the hardware and ma
chinery business in State Center for
many years, in partnership with his
brother, F. H. Schilling.
Mr. Schilling was a Mason and a
member of Za-Ga-Zig Temple, Des
Moines.
Mâke Improvements
Some attractive improvements have
been made in the office of the Citizens
State Bank in Donnellson, Iowa.
Improvements include removal of
the high cages around the counters,
lowering of the ceiling and installation
of acoustic tile material in place of
the former metal panel ceiling, rewir
ing the entire bank building, installa
tion of fluorescent lighting and redec
orating the interior of the banking
offices.
A new National Cash Register book-
Mmtu twroup M e e t in g s S ch ed u le
The hotel or country club in each town where meetings will be
held, and the definite programs to be given have not been an
nounced. W hen this inform ation becomes available it will he p u b
lished in forthcom ing issues o f the N O R TH W E ST E R N BANKER
for your convenience.
7
Date
Tuesday,
Wednesday,
Thursday,
Friday,
May 8
May 9
May 10
May 11
M eeting Place
Council Bluffs
Chariton
Muscatine
Iowa City
4
3
2
6
Tuesday,
W ednesday,
Thursday,
Friday,
May
May
May
May
Decorah
Iowa Falls
Emmetsburg
Boone
Gron p
5
10
8
22
23
24
25
Northwestern Banker, April, 1951
60
loMNk Mews
y
keeping machine has been added to
the office equipment.
Southwest Iowa Meeting
James Pullman, Jr., was elected
president of the Southwest Iowa
Bankers Association at a dinner meet
ing in Essex. He is cashier of the
Fremont County Savings Bank at Sid
ney.
Other officers are Orville Thompson,
cashier, Page County State Bank, Clarinda, vice president; Lester Anderson,
assistant c a s h i e r . Houghton State
Bank, Red Oak, treasurer, and Mrs.
Joe Zdychnec, assistant cashier, Ran
dolph State Bank, secretary.
Louis R. Boettcher, cashier, Noda
way Valley National Bank, Villisca,
was the retiring president. About 125
bank officers and employes were there.
Three Promotions
The board of directors of the First
Trust and Savings Bank, Davenport,
Iowa, recently announced three pro
motions.
W. C. Siddle, vice president and
trust officer, has been given the addi
tional title of cashier. G. W. Thomp
son, assistant cashier, has been pro
moted to assistant vice president. E.
A. Meisenbach has been promoted to
assistant cashier.
r
Moves to Tama
A. H. Hochberger has resigned as
cashier of the First State Bank of
Audubon, Iowa, to accept a position
with the Tama State Bank at Tama.
Before joining the Audubon bank in
1949, Mr. Hochberger was associated
with the Cresco Union Savings Bank
in Cresco.
j»
A
Wells Spencer Short
Wells Spencer Short, 85, chairman
of the board of the Northwestern
State Bank at Orange City, Iowa, died
last month after an illness of two
weeks. He is survived by his widow
and one sister.
Mr. Short had been associated with
the Northwestern State Bank for 60
years, first as a bookkeeper in 1884,
then in 1904 he bought controlling in
terest in the bank and was chairman
of the board from that time until his
death. He retired as president in 1945.
N ew Chariton C ash ie r
Oliver Hagglund has been elected
cashier of the National Bank and
Trust Company in Chariton, Iowa, it
was announced recently by A. R. Hass,
president. Mr. Hagglund has been a
Chariton resident for a number of
years. He served in various capacities
for the FHA, then from 1945 to 1950
owned and operated a machinery store
in Chariton, after which he returned
to FHA supervisory work.
FOR
60th A n n iv e rsa ry
b a n k
The Henry County Savings Bank of
Mt. Pleasant, Iowa, recently passed
its 60th year since founding. Capital
at the time of organization in 1891
was $36,000, while today capital is
$100,000 and surplus is $150,000.
®*1®
New Director
„al Bank of W ater c
fin d «
^
■
hank
p r o m p t’e f f ^ n t —
'
_
CORPO.M>°*.
HE
ONAL
NK
1F
^
_
c t
iN
SURANC
Francis L. Cudahy, attorney, was
elected to the board of directors of
the Home State Bank of Jefferson.
Iowa, at the annual meeting recently.
With Northwood Bank
Paul G. Kruggel, formerly of Mason
City, is the new assistant cashier of
the Northwood State Bank, Northwood, Iowa, where he took over his
duties recently.
Bank Examiner
Carleton Groszkruger has accepted
a position as assistant bank examiner
W
L
RLOO
V.
YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE, VAULT AND
TIMELOCK EXPERTS
F. E. DAVENPORT & CO.
OM AHA
t-
N ort hwest ern Banker, April, 1951
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
2
I Government Securities j
I
and your Bank
|
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
T
HE management o f the p ortfolio o f United States Governm ent
securities is a major job in every bank today. T o aid our corre
spondent banks in this task, we send them a weekly quotation sheet,
buy and sell governm ent securities for them as agent without fee and
if desired h old the securities in safekeeping without charge.
This is only one o f many services we have been rendering banks
and bankers throughout the M iddle West for over three-quarters o f a
century. W e shall be pleased to explain these services in m ore detail.
¥ //i e
LIVE STOCK
BANK
^ Y a tìo ìia /
C
^ /l€ C € ta O
ESTABLISHED 1868
U N ION
STOCK YARDS
Northwestern Banker, April, 1951
62
Iowa News
for the Federal Reserve Bank of Min
neapolis, Minnesota. He assumed his
new duties March 1st.
Mr. Groszkruger will spend a con
siderable amount of his time examin
ing banks in Montana, South Dakota,
North Dakota, Minnesota, Wisconsin
and northern Michigan.
He worked in the bank at Collins,
Iowa, for eight months and then ac
cepted a position in the Citizens State
★
Bank in Belle Plaine, where he has
been for the past three and a half
years, more recently as assistant cash
ier.
Kenneth Fidler will succeed Mr.
Groszkruger as assistant cashier.
Jonas B. Buser
Jonas B. Buser, 84, of Conesville,
Iowa, died last month of a heart at
tack at his home. He was president
★
★
Our “Latchstring Is Out”
of the Louisa County National Bank
at Columbus Junction. He was a for
mer state senator from Louisa and
Muscatine counties.
Frank Williams Dies
Frank D. Williams, president of the
First National Bank of Iowa City, died
last month after a long illness. Mr.
Williams was a native of Hampton,
Iowa, and attended both Grinnell Col
lege and the University of Iowa, grad
uating from the State University.
He was a director of the Federal
Reserve Bank of Chicago for 10 years
and was active in the affairs of the
Iowa Bankers Association.
Jeffers Promoted
Our forefathers tell of the interesting practice of
leaving the latchstring hanging outside the cabin
door. While we can't actually leave our key hang
ing outside for 24 hours daily, the "latchstring'' idea
is still an important policy in this bank. As our corre
spondent, you are welcom e any time, and we are
truly at your service, night or day.
Walter W. Jeffers, who has repre
sented The National City Bank of
New York in its mid-west territory,
last month was appointed assistant
You will find a most satisfactory correspondent
relationship here at the First National Bank in Sioux
City.
J. T. Grant.
President
W . L. Tem ple, Vice President
J. R. G raning, Cashier
E. A. Johnson, Assistant Cashier
President
Assistant Cashier
Assistant Cashier
E. E. Snell, Assistant Cashier
E. V. Hoffman, Assistant Cashier
H. V. Bull, V ice
H. H. Strifert,
K. J. Shannon,
NATIONAL
BANK
W A L T E R W . JEFFERS
N ow assistant v ice president of
N ational C ity Bank
vice president of the bank. He was
previously an assistant cashier. Mr.
Jeffers graduated from Harvard Uni
versity in 1936 with an A.B. degree.
in SIOUX CITY
ACORN
Sale
Registers
"Accepted Sale Registers by Bank
Clerks Everywhere"
MEMBER FEDERAL RESERVE SYSTEM
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION
--------- ★
★
★
Scarborough’s Transit Cash Letter Policy now insures
against loss of "o n us’’ checks and pays "extra expenses”
in case o f loss. It saves far more than it costs. W rite
for details.
For information write
THE AC O R N PRINTING C O.
OAKLAND, IOW A
S ca rb o ro u g h &
C om pany
Co
to
Banks
RST N A T I O N A L B AN K B U IL D IN G . C H IC A G O 3, IL L IN O IS . STate 2 -4 3 2 5
Northwest ern Banker, April, 1951
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
63
A PLEASANT
BANKING
RELATIONSHIP
VALLEY BANK A N D T R U S T C O M P A N Y
DES M O I N E S
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION
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Federal Reserve Bank of St. Louis
Northwestern Banker, April, 1951
64
IMME ¡» » ff
IMME
>jjjî
iB S M
L p9®Sitß
ll<kK .UoillON New s
LARGE contingent of Des Moines
A
bankers attended the National
Installment Credit Conference in Chi
cago last month, including the follow
ing:
Robert K. Popple, assistant cashier,
and Hugh Van Hoesen, installment
credit department, Rankers Trust
Company.
Warren Ferguson, assistant cashier,
Capital City State Bank.
Arthur T. Don ho we, vice president,
and I). D. Keller and G. W. Bartmess,
Jr., assistant cashiers, Central Nation
al Bank and Trust Company.
Gerald O. Nelson, vice president,
lowa-Des Moines National Bank.
Carl K. Frederickson, cashier, State
Bank of Des Moines.
Ray Thompson, vice president, and
George AV. Gill, assistant cashier, Val
ley Bank and Trust Company.
* * *
The First Federal State Bank has
lengthened its banking hours on Fri
days so that patrons now find the
bank open from 9:00 a. m. to 8:00 p. m.
The added hours were for the con
venience of customers, since the bank
is closed all day Saturdays.
* * *
A would-be fast check artist was
snagged at the Bankers Trust Com
pany last month before he could get
away with his plan to withdraw $1,000
in cash. The man opened an account
with Bankers Trust one morning for
$50. That same day he deposited a
check for $1,300, drawn on the Dysart
National Bank. Bankers Trust em
ployes and officers became suspicious
and phoned the Dysart National, learn
ing that the man was unknown to
the Dysart bank and had no account
there.
The following morning the “new
customer” returned to Bankers Trust
and made out a check for $1,000 cash,
to be withdrawn from the account to
which he had deposited the $1,300.
Trouble began to happen for him at
that time. He signed the wrong name,
writing “Patterson” instead of “Peter
son” as he had opened the account,
then local police officials stepped in
and arrested him. Since the check
had not been actually cashed, he was
taken to court, tried and convicted on
the lesser charge of impersonating a
police officer. He had stated when
opening the account that he was an
officer. He was sent to jail for 30
days.
* * *
The Valley Bank and Trust Com
pany last month inaugurated a new
type of employe training program
when all members of the staff, exclud
ing officers, attended a dinner meeting
at the Des Moines Club. Bob McGee,
note teller, is moderator of the pro
gram and was speaker at the first
meeting. He discussed “ Iowa Bank
ing History,” a subject which was the
theme of his thesis submitted at the
Wharton School of Finance.
The dinner meetings will be held
once each month, at which time a
department head or officer will explain
the functions of every job in the bank,
so that each employe can visualize
the over-all operations of the bank
and how his own job fits into the
pattern of bank activity. Each talk
will be followed by a discussion pe
riod to bring out specific points not
covered by the speaker.
The meetings are for employes and
officers are invited to the meetings
only as the speaker of the evening.
* * *
L. Nevin Lee, vice president of
Bankers Trust Company, reported last
month that Polk county had exceeded
its goal of $175,130 for the American
Red Cross, with a total of $178,188.
Mr. Lee was chairman of the 1951
Fund Compaign for Polk county. Fol
lowing over-subscription of the county
goal, he received this wire from David
Sarnoff, national chairman of the Red
Cross 1951 Fund Campaign:
“Congratulations to you and all your
associates on an excellent perform
ance. I understand Polk county is
the second Red Cross chapter of its
size to report success in the 1951
Fund Campaign. This is a fine tribute
to the generous and patriotic support
of your community.”
=i= *
Marilyn Jean Framness and Clark
A. Colby were married in Des Moines
last month. The bride is the daughter
of Mrs. R. Framness, veteran teller
at the First Federal State Bank.
*
=N
=t=
Two well-known veteran employes
of the lowa-Des Moines National
Bank, one of them retired, died last
month. James Burson, 69, former as
sistant cashier, who retired last year
after 46 years’ service with the bank,
died at Iowa Lutheran Hospital in Des
Moines after illness forced him to re
turn from a vacation in Atlanta, Geor
gia. He is survived by his widow,
Irma; three daughters, a brother, a
sister and five grandchildren.
William Frank Howell, 57, assistant
cashier at the lowa-Des Moines Na
tional, died of a heart attack at his
home. He was also treasurer of the
Iowa Building and Loan Association.
He is survived by his widow, two
brothers and one sister.
*
*
*
John B. Monahan, assistant cashier,
Bankers Trust Company, was listed
last month as one of Iowa’s all-time
basketball greats. His record of being
selected three successive seasons as a
player on the All-Missouri Valley team
was the basis of his nomination for
the Iowa Hall of Fame. Mr. Monahan
played for Drake University in Des
Moines.
* * *
Edward A. Slininger, 71, former Des
Moines banker, died in Los Angeles
last month after a lengthy illness. Mr.
Slininger was vice president of the
Peoples Savings Bank in Des Moines
until it was consolidated with Bank
ers Trust Company in 1928.—The End.
BANKS ?n°dusG
oH
L£
OVER 25 YEARS OF EFFICIENT
CONFIDENTIAL PERSONAL SERVICE
ASK A N Y MID-WEST RESERVE CITY BANKER
HENRY H
M A R Q U E T T E fta fa u r f B A N K OF Mi n n e a p o l i s
Northwestern Banker, April, 1951
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
B Y E R S . President
BANKERS SERVICE CO., INC.
BOX 1435
•
DES MOINES 5 IO W A
•
TELEPHONE 3-7800
65
In the
DIRECTOR’S
ROOM
Lost Cause
Behind the News
A Washington matron once boasted
she could make President Coolidge
talk. Cornering him at a dinner, she
sought to make good her boast.
“Oh, Mr. President,” she said, try
ing to disarm him with frankness, “ I
have made a bet that I can make you
say at least three words.”
“You lose,” Coolidge replied.
Gentleman of the Jury
A traveler one night found himself
obliged to remain in a small town on
account of a landslide on the railway,
caused by heavy rain which was still
falling in torrents.
The traveler
turned to the waitress with: “ This
certainly looks like the flood.”
“The what?”
“ The flood. You’ve read about the
flood, and the ark landing on Mount
Ararat, surely.”
“Mister,” she returned, “ I haven’t
seen a paper for three days.”
A young lawyer was presenting his
first case in court. It was a simple
damage suit of a farmer against a rail
road company whose train had killed
24 of his hogs, but the youngster was
trying to dramatize it.
“Just think of it, gentlemen, 24
hogs,” he stated impressively, “Twen
ty-four! That’s twice the number
there are on the juryf”
Mystery
A man was discovered by his wife
one night standing over his baby’s
crib. Silently she watched him. As
he stood looking down at the sleeping
infant, she saw in his face a mixture
of emotions—rapture, doubt, admira
tion, d e s p a i r , ecstasy, incredulity.
Touched and wondering alike at this
unusual parental attitude, the wife
with eyes glistening arose and slipped
her arms around him.
“A penny for your thoughts,” she
said, in a tremulous voice. He blurted
them out:
“For the life of me, I can’t see how
anybody can make a crib like that for
$3.49!”
Equal
A woman with a dog in tow was
preparing to board a train.
“I suppose,” she said to the train
conductor, “if I pay fare Tor my dog
he will be treated the same as other
passengers and be allowed to occupy
a seat?”
“ Of course, madam,” the conductor
replied, politely, “he will be treated
the same as other passengers, and can
occupy a seat, provided he does not
put his feet on it.”
A customer sat down at a table in
a smart restaurant and tied a napkin
around his neck. The scandalized
manager called a waiter and instructed
him, “Try to make him understand, as
tactfully as possible, that that’s not
done.”
Said the thoughtful waiter to the
customer: “Pardon me, sir, shave or
haircut, sir?”
i>
IN D E X OF
A D V E R T IS E R S
April, 1951
A
A c o rn P r in tin g C o m p a n y ....................................62
A d d r e s s o g r a p h S a les A g e n c y ..........................55
A llie d M u tu a l C a s u a lty C o m p a n y ................ 38
A m e r ic a n E x p r e s s C o m p a n y ............................ 44
A m e r ic a n N a tio n a l B a n k and T r u s t
C o m p a n y — C h ic a g o ...........................................24
A s h w e ll and C o m p a n y ........................................... 33
li
B a n k o f M o n t r e a l................................................... 26
B a n k e r s S e rv ic e C o m p a n y , In c ...................
............................................................... 43, 46, 56, 64
B a n k e r s T r u s t C o m p a n y — D es M o i n e s .. 6
B a n k e r s T r u s t C o m p a n y — N e w Y o r k . . . .40
B u sin e ss M a c h in e s and E q u ip m e n t Co. .. 5 2
D a v e n p o rt, F . E. an d C o m p a n y ............ 5 5 ,6 0
D e L u x e C h eck P rin te rs , In c ............................. 8
D e s M o in e s B u ild in g -L o a n an d S a v in g s
A s s o c ia tio n .............................................................. 36
D r o v e r s N a tio n a l B a n k ..................................1 ..2 8
r
F ir s t
F ir s t
F ir s t
F ir s t
F ir s t
F ir s t
F ir st
N a tio n a l
B a n k — C h ic a g o ............... 4
N a tio n a l
B a n k — L in c o ln ..................54
N a tio n a l
B a n k — O m a h a ................... 57
N a tio n a l B a n k in St. L o u i s .................. 29
N a tio n a l B a n k — S io u x C i t y ................ 62
St. J osep h S tock Y a r d s B a n k ............. 56
W is c o n s in N a tio n a l B a n k .....................10
G
Gentle Hint
u
M a rq u e tte N a tio n a l B a n k ................................... 64
M e rc a n tile -C o m m e r c e B a n k and T r u s t
C o m p a n y ...................................................................27
M e rc h a n ts M u tu a l B o n d in g C o m p a n y ... 38
M e rc h a n ts N a tio n a l B a n k .................................. 2
M in n e a p o lis -M o lin e P o w e r Im p le m e n t
C o m p a n y ...................................................................43
M in n e s o ta C o m m e rc ia l M e n ’ s A s s n ...........42
M o sle r S a fe C o m p a n y ............................................ 5
N
N a tio n a l B a n k o f C o m m e r c e ........................... 55
N a tio n a l B a n k o f S ou th D a k o t a ................... 45
N a tio n a l B a n k o f W a t e r l o o ..............................60
N a tio n a l S u r e ty C o r p o r a tio n ............................ 34
N o r th w e s t S e c u rity N a tio n a l B a n k ..........46
O
G e n e ra l A m e r ic a n L ife In s u ra n c e Co. . . . 3 7
G ra e fe and C o m p a n y ............................................. 32
O m ah a N a tio n a l B a n k ...........................................23
H
P u b lic N a tio n a l B a n k and T r u s t C o ............27
H a r r is T r u s t and S a v in g s B a n k .....................30
H a w k e y e -S e c u r it y In su ra n c e C o m p a n y ..36
H o m e In s u ra n c e C o m p a n y ........................ .. . . 9
R e p u b lic N a tio n a l B a n k — D a l l a s .................. 29
I
S c a rb o r o u g h an d C o m p a n y ............... 3 8 ,4 9 ,6 2
S to c k Y a rd s N a tio n a l B a n k — O m a h a . . . . 51
P
I n v e s to r s D iv e rsifie d S e rv ic e s In c ................33
lo w a -D e s M o in e s N a tio n a l B a n k .................. 68
Iccwa L ith o g r a p h in g C o m p a n y ....................... 38
Io w a M u tu a l C a s u a lty C o m p a n y .................. 57
Ir v in g T r u s t C o m p a n y ...........................................25
C
K
C e n tra l N a tio n a l B a n k an d T r u s t Co. . . . 1 4
C h a se N a tio n a l B a n k ............................................. 11
C ity N a tio n a l B a n k an d T r u s t C o m p a n y
— C h ic a g o .................................................................33
C o n tin e n ta l Illin o is N a tio n a l B a n k and
T r u s t C o m p a n y ........................
67
C o n tin e n ta l N a tio n a l B a n k — L in c o ln . . . . 53
K och B r o t h e r s ............................................................39
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
A Plurality ■
If more than one mouse is mice
and more than one louse is lice, then
you’ll agree that more than one spouse
is spice.
R
S
T o o t le -L a c y N a tio n a l B a n k ....................... 5 2 -5 3
IT
U n ite d S ta te s C h ec k B o o k C o m p a n y . . . . 57
U n ite d S ta te s N a tio n a l B a n k — O m a h a . . . 48
1,
V
V a lle y B a n k and T r u s t C o m p a n y .................. 63
V a lle y N a tio n a l B a n k — P h o e n ix .....................34
L a M on te , G e o rg e an d S o n ................................ 3
L a w re n c e W a r e h o u s e C o m p a n y .................... 8
L iv e S to c k N a tio n a l B a n k — C h ic a g o . . . . 61
L iv e S to c k N a tio n a l B a n k — O m a h a ........... 58
W a lt e r s , C h a rle s E ., C o m p a n y ....................... 55
W e s t e r n M u tu a l In s u ra n c e C o m p a n y ... 39
Wrh e e lo c k and C u m m in s ......................................32
W
N o rthw e ste rn Banker, A p ril, 1951
66
LEGAL
Is Faulltf Fil in ff ni Tax H e! urn
A I tra ifs
Evidence ni Fraud?
volver and shoots and injures another.
Can the injured person recover com
pensatory damages from the insane
person and his estate under the gen
eral rules of law applicable to such
situations?
Q.
Kerr, a banker, filed a federal
income tax return which contained
v a r i o u s deficiencies. Subsequently
these were paid by him. Tbe revenue
people sought to collect, in addition,
a penalty of 50 per cent under the law
which runs to the effect that such a
charge is in order if any part of a
deficiency is due to fraud. The defi
ciencies were not the result of bad
faith, intentional wrong doing, and sin
ister motives on Kerr’s part, although
the revenuers suspected that they
were. Could the penalty charges be
collected?
No. The responsibility for filing a
correct federal income tax return is
that of the taxpayer, hut a failure to
file a correct return does not neces
sarily constitute fraud. Fraud implies
had faith, intentional wrong doing,
and a sinister motive. It is never
imputed or presumed and the courts
should not sustain findings of fraud
upon circumstances which at the most
create only suspicion.
Q.
Suppose that, in the preceding
question, Kerr had actually b e e n
guilty of fraud in making his income
tax return and that this had been dis
covered and that the 50 per cent pen
alty had been assessed. Suppose fur
ther that Kerr had died before the
penalty had been collected. Would his
estate have been liable for it?
Yes. In the early cases on the sub
ject liability for additions for fraud
to deficiencies in federal income taxes
was not considered to survive the tax
payer’s death. The rule now, how
ever, is that such liability survives
the death and is enforceable against
the taxpayer’s estate.
Q . Buckley, a banker, became inter
ested in horseback riding as an in
cident to keeping in top flight physi
cal condition. In hiring a horse from
a riding academy the owner, without
saying anything about it, assigned to
him an animal that was unsuitable
N o rthw e ste rn Banker, A pril, 1951
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Yes. By the great weight of author
ity an insane person is civilly liable
for his torts. A person who is dam
aged should be compensated for his
damages. The fact that an insane per
son, theoretically, is not capable of
having an intent to injure, will not
permit him to escape liability because
intent is not a necessary element of a
cause of action in a civil case of this
type.
This and Other Timely Legal
Questions Are Answered
by the
LEGAL DEPARTMENT
of the
NORTHWESTERN BANKER
and dangerous. Because of those pro
pensities Buckley became involved in
a spill and was seriously hurt. Could
he recover from the owner for his
damages?
Yes. The relationship between a liv
eryman and his customer is that of
a , bailor and bailee for hire, and the
bailor assumes the liability which a
contract of bailment imposes. He
owes a duty to furnish a horse which
is reasonably fit and suitable for the
purpose for which it is let. If he
knows, or in the exercise of reason
able care should know, that a horse
is unsuitable or dangerous, he is liable
for injuries resulting from any vicious
propensities of the animal. Iowa.
Wisconsin, Indiana and Kentucky are
among the jurisdictions so holding.
Q . Suppose that a trust- company is
appointed guardian of the estate of an
insane person and that the insane per
son subsequently gets hold of a re
Q
Franco, a banker, was also in the
business of installing refrigeration
equipment. He hired a salesman on
a commission basis to solicit installa
tions. The salesman secured a job
which was duly installed. The pur
chaser paid all but part of the pur
chase price.
Franco, without the
knowledge of the salesman, voluntar
ily released any claim for a lien he
might have. Franco did not, however,
pay the salesman his commission. It
was understood between Franco and
the salesman at the time of his em
ployment that Franco would make
any collections and would not pay to
him his commissions until he. Franco,
was paid for the jobs that were ob
tained. Was Franco, nevertheless, lia
ble for the commission?
Yes. The action of Franco in re
leasing the lien without the sales
man’s knowledge placed Franco in a
position where he could not validly
withhold the payment of his sales
man’s commission until he, Franco,
was paid in full. To put the matter
another way, Franco should not be
permitted to voluntarily do an act that
would make collection of the unpaid
balance more difficult or impossible,
and then plead non-payment thereof
as a defense in an action against him
for commissions clue.
Call on the
Continental Illinois
Bank
whenyou buy or sell
Governments and
Municipals
The complete facilities of
our Bond Department are
at your disposal.
On your next visit to
Chicago, our officers will
welcome an opportunity
to review and discuss your
list of security holdings.
Continental Illinois National Bank
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Federal Reserve Bank of St. Louis
and Trust Company of Chicago
LOCK BO X H, C H IC A G O 9 0 , IL L IN O IS
M em ber Federal Deposit Insurance Corporation
1
. . . IS AM INDUSTRIAL STATE, TOO!
SO LAR A IR CR AFT CORPORATION in Des Moines operates this block long seven-story plant
of approximately 300,000 square feet. At present 100 per cent of its production is for the
armed services— principally jet engine components. Normally the company also tabricates
commercial articles of stainless steel and other non-corrosive metals.
Iowa is widely regarded as a great agricultural
State. Not generally recognized is the fact that
industry has firmly established itself in Iowa.
In 1950 the estimated value of manufactured
products was $2,500,000,000 compared to the
cash farm income estimated at $2,000,000,000.
This wholesome balance between industry and
agriculture benefits all Iowa.
The Iowa-Des Moines National Bank welcomes
opportunities to join with other Iowa Banks in
serving agriculture and industry and in financ
ing needs beyond local loan limits.
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Federal Reserve Bank of St. Louis
'S om /c
FOUNDED 1868
@FedFRASER