Full text of The Northwestern Banker : April 1952, 57th Year, No. 777

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A P R IL
1952

Why Our Bank
Sponsors “ Will
— Page 15

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

FINANCIAL PUBLIC RELATIONS PANEL DISCUSSION

Cornerstone

of the

A m eri

can economic system and servant of community progress are
the responsibilities of our nation’ s local banks.

By contribut

ing to the financial stability of the community and working
for the progress of individual customers, independent banks
foster our system of opportunity and freedom.

In Iowa more

than half of the local banks are correspondents of The
Merchants National . . . a connection which enables them to
provide unexcelled, nation-wide service for customers.

TH E

M erchants National
CEDAR

RAPIDS,

BANK

IOWA

- rr
;iHh " f ;

'fi,

I :

mi', il ii,

i 1 tr,

YOU ARE INVITED
to hear The Merchants National Hour over
WMT, 9 to 10 each Sunday evening . . . an
outstanding production used to promote banking
in Iowa.

G ra n t W ood

No. 777. Northwestern Banker, published monthly by Northwestern Banker Company, at 527 Seventh Street, Des Moines, Iowa. Subscription,
35c per copy, $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.

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Federal Reserve Bank of St. Louis

. . .

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Federal Reserve Bank of St. Louis

and

thisputs m e on firm ground

A bank, when it backs the business activities of a customer, is exercising
a very necessary function in the economic picture. No less necessary
to modern business is the important function of the safety papers used
for bank checks and other negotiable documents. And it is a matter of
pride with us that for over 80 years the quality and safety features of
La Monte Check Papers have been so well received by the banking and
business world.
A Check Paper All Your O w n
Thousands of banks and many of the larger corporations use La M onte
Safety Papers with their own trade-mark or design made in the paper
itself. Such i n d iv id u a l iz e d check paper provides maximum protection
against both alteration and counterfeiting—makes identification positive.

T H E W A V Y L I N E S ® ARE A L A M O N T E TR A D E -M AR K

Nort hwest ern Banker, April, 1952

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Federal Reserve Bank of St. Louis

M O D E L 11-EN

.and e/ffitfon a l combines these 8 features on one machine !
On average listings these 8 features, combined,
save hundreds of motions every hour.
The more of these features a machine has; the
more time and effort will be saved every hour
the machine is in use. Isn’t it reasonable, then,

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TH E N A T IO N A L
Federal Reserve Bank of St. Louis

to get the only adding machine that combines
all 8 features —the National? Call the local

National factory branch, or dealer, for a dem
onstration. Models and prices to fit your needs.
(There’s no obligation to buy.)

C A S H R E G IS T E R C O M P A N Y , D A Y T O N 9 , OH IO

Q /ffä ttcn a l
ADDING MACHINES

•

(ASH REGISTERS

ACCOUNTING MACHINES

Through correspondent banks and through branches and
representatives, Chase makes banking facilities available to
customers in all parts of the world reached by American business.
Current trade information from every commercially important
area is gathered from these and other sources for
the benefit of Chase correspondents and their customers.

SERVICE TO
CORRESPONDENTS

Credit information
Around the clock mail
pick-up
Quick collection of items
Participation in
local loans with
correspondent hanks
Dealers in State and
Municipal Bonds

THE CHASE NATIONAL BANK
O F T HE C I T Y O F N E W Y O R K

Execution o f security
orders
A nalyses of investment
portfolios
Safekeeping of securities

HEAD O F F I C E : Pine Street corner of N a s s a u , N e w York
Full foreign services
Twenty-seven bronches in g reater N ew York
Member Federal Deposit Insurance Corporation

Northwestern Banker, April, 1952

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Federal Reserve Bank of St. Louis

Many personal services

ifv u r U d ii uv

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.

"A Job Well Done"
“ Please accept my personal thanks for the
thorough and efficient manner in which you
handled your assignment in connection with
our FPRA Meeting in Des Moines.
“ Judging from the many fine compliments
received, both by word of mouth and by let
ter, the meeting was apparently a success.
Because of your splendid contribution as a
member of the local committee, you are en
titled to your full share of the credit and
the commendatory expressions from those in
attendance.
“ My deepest appreciation to you for a job
well done and for which you should feel just
ly proud.”
Frank Warden, Vice Presi
dent, Central National Bant:
and Trust Company, Des
Moines, Iowa.

"Read With Interest"
“ I have read the N o r t h w e s t e r n B a n k e r
for March with interest. You are to be con
gratulated. Keep going.”
Ben S. Summerwill, Presi
dent, Iowa State Bank #
Trust Company, Iowa City,
Iowa.

"Best In the Field"
“ I would like to comment on the general
excellence of your magazine, the N o r t h
w estern B an ker.
Due to the geographical
factors involved, we don’t often see the
N o r t h w e s t e r n B a n k e r in these parts, but
I do want to say it is one of the very best
we’ve ever seen in the field.
“ I was particularly impressed with Mr.
De Puy’s editorial ‘Dear Herbert Hoover,’
which reflects an attitude which, if shared
by enough others, may yet mean the saving
of this country.”
Jefferson Lyon, Public Belations, 1060 Broad Street,
Newark, New Jersey.

ON THE COVER
Nearly three hundred bankers, in
vestment men and advertising agency
representatives gathered at Hotel
Savery in Des Moines last month to
participate in the regional conference
of the Financial Public Relations As
sociation. A highlight of any FPRA
(Turn to page 8, please)

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Federal Reserve Bank of St. Louis

•

57th Year

•

No. 777

IN THIS APRIL, 1952, ISSUE
EDITORIALS
Across the Desk from the Publisher............................................ 10, 11

FEATURE ARTICLES
Dear Editor .......................................................................... ...........
On the Cover ....................................................................................
Frontispage—One Damp Thing After Another................................
Why Our Bank Sponsors “ Will Day” ........................ M. W. Dunlap
Modern Midwestern Banks Built for Peak Operating Efficiency..16,
News and Views of the Banking World................... Ben Haller, Jr.
How Veterans Can Be Helped to Secure Sound Farm Financing....
........................................................................ Walter T. Robinson
FPRA Regional Conference Draws 300 to Des Moines.....................
Bankers You Know—L. M. Giannini................................................
Independent Bankers Convention Plans..........................................
Tax Investment Considerations.................... W ayne Hummer & Co.

7
7
13
15
17
18
19
20
22
24
28

BONDS AND INVESTMENTS
Money Seeking Investment Continues to Flow.... Raymond Trigger 33

INSURANCE
Selling Ideas for Banker Agents....................................... ................ 38

STATE BANKING NEWS
Minnesota News ..... ........... .............................................................
Twin City News.........................................................................
South Dakota News...................................
South Dakotans Attend Clinic...................................................
Sioux Falls News........................................................................
North Dakota News...........................................................................
“ Oil and Banking” Panel to Feature N. D. Convention............
Montana News ...................................................................................
Nebraska News .................................................................................
Nebraska Groups Program .......................................................
Omaha News .........................
Lincoln News ......
Iowa News ............................................................................
Group Meetings Schedule................. .......... .......................... .
Des Moines News........................................................................
Conventions ...................
In the Directors’ Room......................................................................
Can a Trustee in Bankruptcy Continue Business Operations?—
Legal Questions and Answers.......................

41
42
45
45
45
47
47
48
51
51
52
56
59
59
62
68
69
70

NORTHWESTERN BANKER
527' Seventh St., Des Moines 9, Iowa, Telephone 4-8163
CLIFFORD DE PUY
RALPH W. MOORHEAD
Publisher
Associate Publisher
HENRY H. HAYNES
BEN i . HALLER, JR.
MALCOLM K. FREELAND
Editor

Managing Editor

ELIZABETH COLE

HAZEL C. STEPHENSON

SADIE E. WAY

Advertising Assistant

Auditor

Circulation Department

Advertising Director

PAUL W. SHOOLL

JOSEPH W. FRANKS

Field Representative

Field Repreesntative

NEW YORK OFFICE
Frank P. Syms, Vice President, 505 Fifth Ave., Suite 1806

MUrray Hill 2-0326

DE PUY PUBLICATIONS: Northwestern Banker, Underwriters Review,
Iowa-Nebraska Bank Directory.
Northwestern Banker, April, 1952

ON THE COYER

the Borrower
AMVv

and Lawrence

BANK LOAN based on inventory was first
secured by Lawrence field warehouse receipts in 1914.
Since that time, Lawrence receipts have secured
the loans of some 30 ,0 0 0 borrowers with banks
throughout the 48 states.
Our experience with a great variety of invento
ries, under perennially changing credit conditions,
stands behind the service that Lawrence oilers you
today.
Next time you find that inventoiy is a factor in
a loan application, why not call the Lawrence office
nearest you? Bankers throughout the country have
been doing this for 38 years.

(Continued from page 7)
meeting is the series of panel discus
sions, which allows members to sit
down with others interested in the
same kind of problem and exchange
information on successful and practi
cal methods of operation.
Each panel has from four to six
participants, presided over by a chair
man, with free discussion and sug
gestions from the floor. One of these
panels at the Des Moines meeting is
pictured on the front cover of this is
sue of the N o r t h w e s t e r n B a n k e r . The
panel was discussing commercial de
velopment.
From left to right in the photograph
are: E. W. Eraack, vice president, Dav
enport Bank and Trust Company,
Davenport, Iowa; T. Arthur Williams,
assistant vice president, Central Bank
and Trust Company, Denver, Colorado;
A. J. Rhodes, panel chairman and vice
president, Omaha National Bank, Oma
ha, Nebraska; Emmons W. Collins,
vice president, First & American Na
tional Bank, Duluth, Minnesota, and
William Buxton, III, president, Peo
ples Trust and Savings Bank, Indianola, Iowa. The sixth member of the
panel, J. M. Patton, president, Mitchell
National Bank, Mitchell, South Dakota,
is just out of the picture at the left.
Mr. Patton was vice chairman of the
panel.
For additional pictures and story,
see Page 20.

Supervise Loans
Horace C. Flanigan, president of
Manufacturers Trust Company, an
nounces that David D. Austin, vice
president, has been named to super
vise branch loan activities for the
bank’s Manhattan offices, succeeding
Isaac B. Hopper, who has retired.
Mr. Austin became associated with
Manufacturers Trust Company in 1922
and has been a vice president of that
institution since 1930.

Assistant Cashier

L A W R E N C E SYSTEM
Nationwide Field Warehousing

FACILITATES LOANS AGAINST INVENTORY

SAN FRANCISCO
37 Drumm St.
CH IC A G O
100 N. LaSalle St.
N EW YORK
72 Wall St.
Offices In All Principal Cities
[Ü ftM lH fe É á M M M fl
Northwestern Banker, April, 7952

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Federal Reserve Bank of St. Louis

The First National Bank in St. Louis
announces the promotion of Roman
Beuc to the position of assistant cash
ier. He has served in various depart
ments of the bank since 1921.

Promotion
Irving Trust Company has an
nounced the promotion of Frank E.
Conant from assistant vice president
to vice president. Mr. Conant will be
in charge of the company’s new
branch office at 39th Street and Madi
son Avenue, which is expected to be
opened early this spring.

"The way we do /t, Larry, is to hai/e
our brokers deliver the secu rities
to d a rte rs Trust in A/ew York Tor
o u r Custodian A cco u n t i t sai/es

H e r e ’s a s a f e , e a s y w a y to h a n d le
A s you know , the details involved in
properly handling securities—either
your bank’s or your customers’—can
be troublesome and time-consuming.
W h e n you have a Custodian A c
count at Bankers Trust you free your
self o f the details in connection with
the technical servicing and physical
safeguarding of these securities.
In addition, our location in the
nation’s key securities market gives
you two important advantages when
secu rities are pu rch ased or so ld —
m in im u m ex p osu re to risk and
speedy physical handling.
Servicing of securities in a Cus
todian Account includes the collec
tion and crediting o f maturing or
called securities and a ll i n c o m e purchase and sale, receipt and de

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Federal Reserve Bank of St. Louis

{

y o u r b a n k ’s se c u ritie s
y o u r c u s to m e rs ’ se cu ritie s

livery of securities as you d ir e c tn otice o f su b scrip tio n r ig h ts and
exchanges. U pon completion of all
transactions you receive detailed ad
vices that contain the necessary data
for tax reports.
Your orders to buy or sell w ill be
handled by Bankers Trust if you de
sire, or you may place them with
your own brokers or dealers.
Securities in a Custodian Account
are lodged in our modern vaults,
kept separate from those in other

accounts and are always under your
complete control.
Hundreds o f out-of-tow n banks,
co rp o ra tio n s, e d u ca tio n a l in stitu
tions, insurance companies and sim i
lar organizations are using this safe,
tim e -sa v in g m eans o f h a n d lin g
securities.
W ith o u t obligation, you are in
vited to write for complete infor
m a tio n . Please address C u sto d ia n
Division, 16 W a ll Street, N e w York
15, N . Y.

Bankers T rust Company
NEW

YORK

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

Nort hwest ern Banker, April, 7952

o
the banking department in such manner as to pro
tect the public interest, and the interests of de
positors, creditors, shareholders and stockholders.
There is no reason to believe that the stockholder
was intended to be the least of these.
“ Bank earnings are still too low, relatively, but
the reasons are different Interest rates have gone
up in the last 12 months. The Federal Reserve
wrenched itself free last March of the restraining
hand of the Treasury. Gross earnings have im
proved noticeably, but now something else has
happened. It has been said of human nature that
when you pinch her one place she bulges out in
another. So it is with bank earnings; once gross
began to improve, the higher tax rate came along
to take the gain away. If last year could produce
the miracle of an unpegged Government securities
market, this year may show that it can perform a
miracle of its own by seeing that something is
done about bank taxes.”

Let’s hope that in this session of Congress the
question of reducing the taxes on bank earnings
will be adjusted on a fair and satisfactory basis.

Across the Desk
From tlie Publisher
<

ÜJUUwtl (L. c tyotL:

State Superintendent of New York Banks.

In a recent discussion of bank stocks and bank
earning's you mentioned that many banks “con
tinue to be worth more dead than alive.”
Thus, their liquidating value was worth more
than their book value. This has been primarily
because some bank stockholders have found it is
more advantageous to sell their controlling stock
to other institutions, which in turn has resulted in
a merger of the banks involved. There was more
money in liquidation than in continuation. Obvi
ously this should not be so.
It has been caused in a large measure by in
creased Federal taxes which have reduced earn
ings.
On this subject, Mr. Lyons, you said: “ Thus we
come again in the end to this question of earnings.
Now that the quality of assets is higher than ever
before, a better return on capital is all that stands
in the way of banking in New York State attain
ing a matchless position of strength. I urge that
you do whatever lies within your power after the
claims of the staff and depositors have been met,
to improve the lot of stockholders. A ready flow
of capital into bank stock spells strength for bank
ing.
“ It is the declared policy of New York State in
banking, that the business of all banking organiza
tions shall be supervised and regulated through
Northwestern Banker, April, 1952

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Federal Reserve Bank of St. Louis

As an example of what happened to one bank—the Chase National— last year, here is its report to
stockholders and the taxes it paid the Federal
Government:
1. Earnings before taxes were $6.36 per share.
2. Earnings paid for Federal and State taxes were
$3.45 per share.
3. Earnings after taxes were $2.91 per share.
4. Dividends paid to stockholders were $1.80 per
share.
Thus the Chase National’s tax bill of $25,531,000
was almost double the total paid in dividends of
$13,320,000 at the rate of $1.80 per share.
As you mention, Mr. Lyon, “ A ready flow of
capital into bank stock spells strength for bank
ing,” and with this theme the Chase National also
agrees when in its report it says: “ Many banks
could use additional capital in order to maintain
adequate ratios of capital strength to risk assets
and deposits, and to continue their vital job of
supplying credit.
“But Federal taxation— especially the excess
profits tax— bears down so severely on bank earn
ings that bank stocks have been selling substan
tially below their book values. As a result, it is
increasingly difficult to attract new capital in the
highly competitive investment market, except by
offering stock at a price substantially less than the
fair values represented in the shareholders’ equity.
“ The large banks in the financial centers are
near the bottom of the scale among all the nation’s
major industries in the average return earned on
the capital the owners have to risk. Because of the
abnormally low earnings obtainable under the
present tax law, they cannot build up capital

11
funds from earnings at an adequate rate and at
the same time pay satisfactory dividends.
“ It is in our country’s interest that its banks
should maintain the capital strength and growth
which will enable them to fulfill their responsi
bilities to the public as well as to their owners and
employes.”
So, Mr. Lyon, it is obvious from your conclu
sions and those of the Chase National officials that
the following suggestions are worthy of further
consideration :
1. Reduce the Federal excess profits tax on com
mercial banks.
2. Bring bank earnings on capital invested more
in line with other business institutions.
2. And so make the purchase of bank stock more
attractive and desirable.
To these objectives the best efforts of your bank
ing department as well as all the others in the
United States will have to be concentrated if the
desired results are to be obtained. Banks should
certainly be worth more alive than dead.

Q siW l . Q j i &a s l

9C.

Author of “Fifty Billion Dollars.”

A fter hearing of the many scandals in connec
tion with securing loans from the R.F.C. in recent
years, it is quite refreshing to read your book
which tells of your “ Thirteen years with the
R.F.C. from 1932 to 1945.”
A t least you were honest and just, in loaning
the taxpayers’ money, and you have every reason
to be proud of your record, even if Franklin
Roosevelt cynically called you “ Jesus H. Jones.”
Although the R.F.C. is in its 20th year, and the
N orthw estern
B anker
believes it should be
liquidated now, we were interested in reading
again President Herbert H oover’s message to
Congress of December 7, 1931, recommending the
establishment of the R.F.C. and suggesting “It
should be placed in liquidation at the end of two
years.” The Act became law January 22, 1932.
In the 11 years before the R.F.C. was estab
lished, more than 10,000 banks in the United
States went out of business, and was as you say,
“a truly shameful record for the richest country
on earth.”
As you also pointed out, “ The American people
had only themselves to blame for many of their
bank failures. Some of the ill winds, however,
had blown in upon them across the Atlantic.
England’s decision to go off the gold standard in
September, 1931, following the collapse of the
exchanges in Central Europe, set off a tremendous
testing of our own gold position. * * * During the
six weeks immediately following Great Britain’s
abandonment of the gold standard, 15 per cent
of the monetary gold in the United States was

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Federal Reserve Bank of St. Louis

loaded into ships and sent overseas, a movement
without precedent.”
Your first loan from the R.F.C. was made in
February, 1932, to the Bank of America, San
Francisco, for $15,000,000 and between then and
July 15, you loaned them $68,488,644. A year
later or on June 28, 1933, “ these loans were en
tirely repaid.”
The philosophy back of your entire program,
Mr. Jones, is best expressed, the N o r t h w e s t e r n
B a n k e r believes, when you say “Obviously a dis
tressed country could not support an unsound
banking system, but a sound banking system could
support a distressed country.”
Your chapter on the “ Dawes Bank Loan” was
very enlightening since, “ Even now 18 years later,
my associates of those disastrous days tell me that
frequent inquiry is made at the R.F.C. headquar
ters as to how the Dawes loan has panned out.
“ Though there were times during the middle
1930’s when I thought we might have a substan
tial loss, the loan has panned out very well. The
R.F.C. has collected the entire $90,000,000 loan,
plus more than $10,000,000 interest in addition to
several millions of expenses in connection with the
liquidation.”
On the political side your reference to F.D.R.
was as we always thought he was, “ A total poli
tician.” In your words, “ I do not understand
exactly what Secretary o f State Dean Acheson
meant recently by ‘total diplomacy’ but I under
stand perfectly what is meant by Total politician’
— Franklin D. Roosevelt. He employed all the arts
known to politics, in getting and holding the con
fidence of a great majority of the American people,
and along with it, the hatred of others— a hatred
upon which he capitalized. He changed his tactics
whenever politics seemed to dictate, and with no
intention of leaving the White House until voted
out— or carried out. In his twelve years in the
Presidency he never looked back and never ex
plained.
“ One serious problem with Mr. Roosevelt after
the start of W orld W ar TI in 1939 was that lie
was always fighting two wars at the same time,
the political struggle for the presidency, which
he never lost sight of, and the military conflict.
Regardless of his oft repeated statement, T hate
war,’ he was eager to get into the fighting since
that would insure a third term.”
At 78 years of age, Mr. Jones, you can know
that you did a big job in an honest and consci
entious manner, and for which the American pub
lic should ever be grateful.

Nort hwest ern Banker, April, 1952

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When it comes to serving
the best interests of our
Correspondents, we plow a
straight, unwavering furrow.

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Federal Reserve Bank of St. Louis

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Federal Reserve Bank of St. Louis

is printed on each check when you sell
First National Bank of Chicago Travelers Checks ?
A
And — First National Bank of Chicago Travelers Checks
are being advertised in h o l i d a y and n a t i o n a l g e o g r a p h i c .
Why not call or write us about handling First National
Bank of Chicago Travelers Checks? You’ll find it pays.

c
4

You’ll find, too, you’re better equipped to give more
service to your customers when you take advantage of all
the many important services offered by The First. In
addition to Travelers Checks, these include . . .
Complete Clearing and Collection Service • Rapid Router
Service
At no cost to you, your bank name is printed on every
check when you sell First National Bank of Chicago Trav
elers Checks. This adds prestige to your bank’s name and
gives you widespread publicity on every transaction, for
our travelers checks are used and accepted throughout
the world — and have been for over 40 years !

E dw ard E. B ro w n ,

arold

V. A

Vice-Chairm an

mberg,

Vice-President

omer

Loan Participation

• Bond Department

Procedure Surveys

• Assistance in Handling New Types

Remodeling and Modernization
Advertising

•

Operational

Public Relations and

Credit Information

Conferences

•

Correspondent

Assistance in Special Events

C hairm an o f the Board

j . L iv in g s t o n ,

H ugo A. A

Complete Foreign Banking Service

o f Loans • Wire Transfers • Safekeeping Service • Bank

Not only that . . . you keep the entire sales commission
when you sell the First’s Travelers Checks.

Jam es B. F org an ,

•

n d erso n ,

President

Vice-President

alter

eym ann,

Vice-President

P. Sn yd er,

Vice-President

M. H

erbert

The First National Bank of Chicago
D e a r b o r n , M on roe a n d C la r k Streets
Bu ild in g w it h C h i c a g o since 1 8 6 3
MEMBER

FEDERAL

D EPO SIT

IN SU RA N C E

C ORPORATION

Northwestern Banker, April, 1952

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Federal Reserve Bank of St. Louis

LEGAL ASSISTANCE in preparing a will is pro
vided for customers of the Farmers State Bank, Doug
las, Nebraska, as a free service of the bank every three
or four years, as shown in this picture. The bank
decided it was better to have its customers’ wishes
made clear in a will drawn by an attorney, rather than
have any customer die without a will and leave an
estate tied up in legal snarls.

117i1/

Our B ank Sponsors B u y

Customers Get Wills Made Free by Bank-Paid Attorney
HE idea of a “Will Day” came to
this writer several years ago and
was brought about by various facts
and circumstances which are more or
less common in a small community
where there is no attorney.
As most small town bankers know,
our customers come to us for infor
mation on various subjects that trou
ble them. In our particular case it
was not that we were so well versed
on various subjects, but because they
had no other place to go. Some
country bankers may be better quali
fied than we were.

Written Especially for
The Northwestern Banker

By M. W. DUNLAP
Cashier, Farmers State Bank
Douglas, Nebraska

M. W . D U N L A P

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Federal Reserve Bank of St. Louis

On many occasions our customers
came to us with the desire to make
a will, and would ask about some par
ticular matter that was of special in
terest to them. Sometimes we knew
the answer, other times we felt it
necessary to contact our attorney for
his opinion.

Further Questions
When we would write our attorney
for particular information, often the
answer led up to another question or
a change in the customer’s desire,
which would cause us to contact our
attorney again. Ofttimes the custom
er would lose interest in making the
will and would just let the matter
rest with no will made.
We had one occasion when a woman
came into the bank to have her will
made. After discussing the matter for
a time she decided to go home, think
it over and would be back. Before
the week was over she was found dead
but not before she had made out a
will along the lines we had talked of.
In fact, we think she made the will
the night she died. However, she left
out a very important fact. She had no
witnesses on the will and, of course,
it was not accepted in court and the
various things she had told me she
wished to do were left undone.
Then we had another case where,
after revising the will for our cus
tomer through making several new
wills, one was finally agreed upon and
made out, then taken home by the
customer. Upon death the will was
presented to the court. It had obvi
ously been tampered with, and was

now the basis for a good family quar
rel, which took place on schedule.
We had several other occasions
when a person talked of a will but
put off making it until he or she had
passed away with the will not made.

Led to "Will Day"
All of this led us to believe that it
would be a good idea to set a certain
day and call it “Will Day” and notify
our customers that on that day our
attorney would be at our bank all day
to discuss, advise or make wills for
everyone interested in any way in the
matter.
We also notified our customers that
this would be done free of charge for
them, and that they were welcome to
consult our attorney or have their
will made out on the spot without cost
or obligation of any kind. We talked
the matter over with our attorney and
he was glad to cooperate with us in
the matter and come to our bank. We
then wrote a letter to everyone whom
we thought might be interested, noti
fying them of the date, who our attor
ney was and the service we proposed
to give them, stressing the fact that
our attorney was trained to give them
proper legal information on all mat
ters pertaining to wills, estates, etc.
Of course we did not contact all of
ours customers for various reasons.
However, we found that about 15 per
cent of those we wrote to came in on
“Will Day” to talk to our attorney, and
of these about two-thirds made out
a will.

No Influence Used
Our attorney received some business
through these contacts as attorney.
(Turn to page 68, please)
Nort hwest ern Banker, April, 7952

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New quarters of the Exchange State Bank of Kansas City,
Kansas, will be one of America’s finest examples of contemporary
modern bank architecture. Unusual full-length windows, all of
which are stationary, are being custom made, encased in alumi
num. Corner of roof is supported by a stainless steel pillar
(foreground).

Interior of Exchange State Bank will offer finest customer
service and comfort. Dark blue ceiling with recessed spotlights
lends dramatic effect to main lobby. Recessed fluorescent panel
fixtures are housed under mezzanine. Entire building— interior
and exterior—was planned and designed by Bank Building &
Equipment Corporation, and will be completed this spring.

M o d e m M id w estern B unks B u ilt
F o r P eak O perating
Architect’s sketch of First National Bank in St. Louis as it will look on completion of five-million-dollar modernizing and con
struction program. The bank’s present six-story building will be completely remodeled, and a new five-story building will be added.
Working areas will be reproportioned to attain maximum efficiency, smoother work flow.

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Federal Reserve Bank of St. Louis

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THE STORY and pictures on this and the
opposite page, show how bankers of the
middle west are modernizing their banking
quarters. They are from the files of the
Bank Building and Equipment Corporation
of America, the world's largest bank
building organization.

■

t
Ills

I r

Attractive Design Also Instrumental in
Profit Rise of New Banking Quarters
HESE pictures graphically illustrate the trends in
building and modernizing Midwestern banks. All were
designed and executed by the country’s largest organi
zation of bank building and modernization specialists,
Bank Building & Equipment Corporation of America, a
St. Louis firm operating nationally. All these projects
have the same objective: to increase operating efficiency,
reduce overhead, and to provide pleasant surroundings for
the banks’ customers.
The Bank Building & Equipment Corporation now has
approximately 160 banks under way throughout North
and Central America. In the past six years alone, it has
averaged one new quarters project every three days. The
company, headed by J. B. Gander, maintains divisional
offices in New York City, San Francisco, Atlanta, and
Miami. It has completed over 2,000 projects in its 39 years
of operation.
Because of its huge facilities, including the world’s
largest assemblage of licensed architects, the company
can offer equal services to large and small banks.
The unusual designs shown on these pages spring from
the company’s large staff of architects and designers who
spend their time exclusively on bank designing.
The company recently published the results of a survey*
among banks they had modernized. Deposit totals for
all banks interviewed showed an increase averaging 33.7%
since modernization. Savings accounts were up 19.8%
and checking depositors increased 20.6%. Operating effi
ciency and customer service increased proportionately.
It has proved, almost without question, that modernization
is just plain good business!

*Copies of this survey, “What Happens After a Bank
Modernizes,” are available from N orthw estern Banker.
No obligation.

New lobby of the People’s Savings Bank of Evansville,
Indiana, is highlighted by a large white plaster mural of the
“ Spirit of Commerce.” Various supporting murals depict labor,
education, architecture, engineering, etc. Counter space was
doubled by modernization, now has eleven teller stations.

YÍ

New quarters of the Millikin National Bank, Decatur, Illinois,
as well as those of most Bank Building and Equipment Corpora
tion jobs, are completely air conditioned. Drapes and Venetian
blinds lend cordial touch to back-counter areas. Teller counters
are of the low sloping die front construction; wickets are dec
orative metal. Flooring is terrazzo. Low plate glass and metal
railings separate portion of officers’ section from main banking

A complete new quarters project was recently executed on the
Citizens National Bank and Trust Company, of Piqua, Ohio.

Colorful carpet, shown below in main lobby, makes the bank’s
new interior .one of the most modern in the nation. Note sloping
front, natural grain of teller counters, glass partition at end
of lobby. Check desks are original design of Bank Building &

Board room of the Alton Banking and Trust Company, Alton,
Illinois, is connected to convenient kitchenette by Modernfold

Equipment Corporation of America.

Bank Building & Equipment Corporation.

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

. |£* ••

doors. The bank, known to Altonians as the Wedge Bank, was
completely modernized from basement area to second floor by

18
-J

N ew s and Views
OF THE BANKING WORLD
By BEN HALLER, JR., Managing Editor

DWARD R. ERNST has been ap
pointed to succeed John H. F.
Turner as superintendent of the

Bank of Montreal’s foreign depart
ment. Mr. Turner has been named
assistant general manager in charge
of the bank’s western division.
Mr. Ernst was formerly assistant su
perintendent of the Bank of Mon-

E D W A R D R. ER N ST
New superintendent of foreign department,
Bank of Montreal

treal’s foreign department, a job which
took him to many parts of the world,
including Australia, New Zealand,
Honolulu and Fiji. From 1928 to
1943 he was attached to the bank’s
important New York agency.
=K 4= *
When the Bank of America branch
in Salinas, California, loaned James
Boyer $400 last month to paint his
house and garage and build a fence,
the loan was of more than passing in
terest. It was entered on Bank of
America’s loaning records as the
bank’s one millionth Title I FHA loan,
according to L. M. Giannini, president.
Since 1933, when this category of in
sured loan was legalized by the Fed
eral government, Bank of America has
loaned out $408,020,790 to Californians
for the repair and rehabilitation of
their residential and business prop
erties. These loans averaged $408
each, and practically all were under
the $2,500 single-residence limit.
* * *
The First National Bank in St. Louis
last month began sponsorship of one
of television’s most stirring action
programs. It is “The Big Picture,”
the Army’s official television report to
Northwestern Banker, April, 1952

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Federal Reserve Bank of St. Louis

the American people on the United
Nation’s campaign in Korea. The se
ries runs for 13 weeks, with each
half-hour sequence covering approxi
mately one month’s fighting in Korea.
“The Big Picture” is based upon
film taken in combat by armed service
cameramen and was used for official
training purposes before being re
leased for television. It gives a closeup of military operations seldom, if
ever, seen by the general public.
Action in these films is so realistic
that viewers will find themselves duck
ing a mortar blast occasionally.
The First National Bank sponsors
the film as a public service, with no
commercial announcements.
* * *
During the 39 years of the Federal
income tax, the per capita Federal tax
burden has grown from $3.38 in the
“pre-income tax” year 1912 to $326.82
in 1951 for every man, woman and
child in the country, according to Com
merce Clearing House. Here’s a table
showing the per capita tax burden for
representative years based on total
Federal tax collections and popula
tions for respective years:
Fiscal
Federal Tax
Year
per Capita
1866 ......................... $ 8.67
1870 .........................
4.77
2.47
1880 .........................
1890 .........................
2.26
1900 .........................
3.88
1912 .........................
3.38
1917 .......................... 7.92
1920 .......................... 50.81

Fiscal
Year
1925
1931
1932
1933
1940
1942
1945
1951

sion test, dropped three stories, then
safe experts get a crack at trying to
open the safe with burglar tools.
Diebold has described the various
tests for its lines of safes, and answers
all possible questions on this protec
tive equipment in three folders that
can be obtained directly from the firm
at Canton.
* =1= *
At a recent meeting of the board of
directors of George La Monte & Son,
Ltd., Canada, George V. La Monte, Jr.,
was elected president. Mr. La Monte

-i.

Federal Tax
per Capita
$ 22.65
19.57
12.48
12.89
40.57
96.78
312.86
326.82

* * *
Staff members of the California
Bank’s Van Nuys office heeded the
motto of the nation’s postal carriers
recently and went at their work un
daunted by the worst California storm
in the past 62 years. When they ar
rived the day after the storm, the staff
found two inches of mud and water
on the floor, but the facilities were
kept going and employes opened nine
new accounts, handled $130,000 in de
posits and $43,000 in cash during the
day’s business.
* * *
Want to test your safe? Heat it to
1700 degrees F. for one hour, drop it
three full stories on a pile of rubble,
reheat to 1700 degrees for one hour,
then inspect it to see if papers inside
are still intact!
Maybe that seems ludicrous to the
average person, but that’s what the
men at Diebold, Incorporated, manu
facturers of safes, chests and vault
doors in Canton, Ohio, do as routine
work. In addition, Diebold’s four hour
Class A safe gets 2000 degrees for four
hours, then is subjected to an explo

GEO RG E V . L A M O N T E , JR.
Now president of George La Monte & Son,
Ltd., Canada

also is a director of the company,
which is a subsidiary of George La
Monte & Son of Nutley, New Jersey.
Both companies have long supplied
banks in the United States and Canada
with safety papers for checks, the
parent company since 1871, when
George La Monte, the founder, in
vented safety papers, and the Cana
dian subsidiary since 1916. George V.
La Monte, Sr., is president of the par
ent firm at Nutley.
* * 4=
Just 450 years ago Columbus discov
ered Panama but he wouldn’t know
the place now. The small republic,
about the size of the state of Maine, is
criss-crossed with railroads and high
ways in addition to the fabulous Pan
ama Canal, which was first started in
1882 by the French, taken up again in
1904 by the United States and com
pleted in 1914, although not formally
opened for traffic until 1920.
(Turn to page 34, please)

19
veteran starting in farming needs more than just a loan; he needs to he financed under a plan of
farm operation that provides for debt retirement from earned income.

In some cases he needs super

vision and guidance."

lit*tv V eterans # an
H elped
To
Secure Sound Farm Financing
Loan Program Has Future Possibilities Since Only
Small Percentage of Veteran Farmers Have Made G. I. Loans
By WALTER T. ROBINSON
Loan Guaranty Officer
Veterans Administration
Des Moines, Iowa
T IS not the purpose of this analysis
to make it easier for veterans to
become involved in debt at high
prices or to encourage loose credit,
but rather to improve a procedure un
der which lenders will he encouraged
to make loans to veteran farmers on
a sound basis, resulting in construc
tive financing.

' Of the two types of agricultural
credit, personal property farm loans
and real estate mortgage indebtedness,
the barnyard operating type of loan to
start a veteran in the farming busi
ness is most frequently used and, be
cause of its nature, presents numer
ous problems. The real function of
this type of credit is to assist in plac
ing the tools and materials of produc
tion in the hands of veterans who can
make constructive use of them.

Farming Scientific
Through research by agricultural
experiment stations and other agen
cies, farming has become a scientific
enterprise. In order to operate effi
ciently and compete in the market
place, a farmer today must understand
soil management, hybrid seeds, proper
breeding of livestock, the use of lime
and fertilizer, and approved market
ing methods. Successful operation of

likewise had to change. The old
“ David Harum” horse-trading philos
ophy of credit, based on determining
the least amount a borrower could get
along with, and then loaning him half
that amount, possessed a basic ele
ment of safety but did not go far
enough. A veteran starting in farm
ing needs more than just a loan; he
needs to be financed under a plan of
farm operation that provides for debt
retirement from earned income. In

some cases he needs supervision and
guidance. In this connection recogni
tion should be given to benefits de
rived from the vocational on-the-farm
training program which, in many
areas, has been of assistance to vet
erans starting in farming with the
aid of G.I. loans.

1■ The

general purpose of this study
and analysis is to briefly outline the
effectiveness of the program hereto-

fore, indicate its further potential, and
make recommendations as to:
A. Desirable procedural changes,
B. Desirable regulatory changes, and
C. Required legislative enactments
which would be beneficial in ob
taining broader participation on
the part of private lenders, re
sulting in a more constructive
type of financing and sounder
credit, in order that veteran
farmers might derive to a fuller
degree the benefits of the act as is
intended by the legislation.
2 . The source of information on
which these recommendations are
made is the personal experience of the
writer with information secured by
direct contact and interviews with
loan guaranty officers, officials of the
Federal Land Bank, Production Credit
Corporation, Farmers Home Adminis(Turn to page 30, please)

a farm today calls for a much larger
investment in personal property and
working capital than was the case sev
eral years ago when a few horses,
some secondhand machinery and a few
cows and brood sows, representing a
small investment, would start a farm
er in business.

As farming practices have changed,
the methods of farm financing have
EDITOR’S NOTE: This is a study
and analysis of farm loan operations
under Section 502 of the Servicemen s
Readjustment Act, with recommenda
tions by the author.

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Federal Reserve Bank of St. Louis

SUCCESSFUL operation of a farm today calls for a much larger investment
in personal property and working capital than was the case several years ago when
a few horses, some second hand machinery and a few cows and brood sows would
start a farmer in business. Now young veterans must purchase heavy equipment
like the tractor above.
Northwestern Banker, April, 1952

THE OUTSTANDING- FEATURE of the Financial Public
Relations Association regional conference in Des Moines last
month was the series of departmental sessions, presided over
by a chairman, and conducted on a panel basis, each panelist
presenting his views on the departmental topic, then answering
questions from the floor.
The Trust Development panel (upper left) was the first to
get under way. From left to right are: Jim Zimmerman, adver
tising manager, United States National Bank, Omaha; William
O. Heath, vice president, Harris Trust & Savings Bank, Chicago,
a panel member; John L. Chapman, vice president, City National
Bank & Trust Company, Chicago, panel chairman; Roland H.
Tornblom, vice president and trust officer, City National Bank,
Council Bluffs, Iowa, and Howard J. Johnson, vice president,
American National Bank and Trust Company, Chicago, a panel
member.
The Publicity and Advertising panel (upper right) had a full

house. This panel was under the chairmanship of Richard H.
Stebbins (center), advertising manager, Northwestern National
Bank, Minneapolis. Two panel members shown are Ralph K.
Brown (left), advertising manager, Mercantile Trust Company,
St. Louis, and Lew W. Ross, president, Council Bluffs Savings
Bank, Council Bluffs, Iowa.
The Staff Relations panel (lower left) had as its chairman
Moses M. Shaw (left), director of public relations, South East
National Bank, Chicago, assisted by William N. Mitten, also

at table, president, First National Bank, Fremont, Nebraska.
Closing the one-day meeting was the banquet addressed by
Gen. Luther L. Hill (lower right), publisher, Des Moines Reg
ister and Tribune. .Seated at Mr. Hill’s right is W. Harold
Brenton, vice president, American Bankers Association, and

president of State Bank of Des Moines, who presided at the
dinner.

I ’l 'i r I R egion a l C onference
D raw s
3 0 0 to D es M o in es
EARLY 300 bankers, all of them
interested in bank advertising
and bank public relations, came
to Des Moines last month to attend a
regional conference of the Financial
Public Relations Association. The oneday meeting was divided into a general
session in the morning, five depart
mental sessions in the afternoon, and
the dinner and after-dinner speaker in
the evening.

The conference was attended by the
five officers of FPRA, four of whom
spoke at the morning meeting, with
President S. L. Chelsted addressing the
luncheon. Preston E. Reed, executive
Northwestern Banker, April, 1952

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Federal Reserve Bank of St. Louis

vice president of FPRA, from Chicago,
also attended.
Advance registrations included 17
from Illinois; Iowa, 167; Kansas, 1; Mis
souri, 3; Minnesota, 13, Nebraska 17;
South Dakota 3; and miscellaneous
states, 8. Many more attended who did
not register until they came to Des
Moines for the meeting.
The five regional sessions, held si
multaneously, were on the subjects of
Commercial Development; Publicity
and Advertising; Savings and Mort
gages; Staff Relations; and Trust De
velopment. R e g is tra n ts remained
through the entire departmental ses
sion or visited several of the sessions,

as they wished. It appeared that the
Commercial Development and the Pubdicity and Advertising sessions were
the best attended. A picture taken of
the panel conducting the Commercial
Development session appears on the
cover of this issue of the N o r t h w e s t
ern

anker.

W. Harold Brenton, president of the
State Bank of Des Moines, and vice
president of the American Bankers
Association, presided at the banquet
and evening meeting, with General
Luther L. Hill, publisher of the Des
Moines R egister and Tribune, as the
featured speaker on the subject, “A
Publisher Looks at Banks.”—The End.

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Federal Reserve Bank of St. Louis

Fast item presentation

is the first duty of

our Transit Department. John Dugick keeps
your items flowing constantly. Take advantage
of our direct sendings to save time and money.

Member Federal Deposit Insurance Corporation

Nort hwest ern Banker , A p r i i 1952

-y

Bankers You Know

#>. >1. iwiunnini
President
Bank of America
San Francisco, California
Field general, chief of staff, planner and strategist
I A W R E N C E M A R IO G I A N N I N I,
1__president of the Bank of A m erica,
was born in San Francisco on N ovem
ber 25, 1894, and was within one
m onth of his tenth birthday when his
fam ous father, A . P. Giannini, uncer
em oniously opened the door of a tiny
ex-tavern on the edge of the city’s
financial district and declared him self
in business as a banker.
L. M ., as he is known around the
bank and to his close friends, im m edi
ately let it be known he was liis dad’s
partner in m aking the bank a success.
H e knew his father had m ixed a busi
ness career with school studies as a
youth and he was eager to do the
same, but the elder Giannini decreed
that the lad be well schooled.
W e ll schooled he was, forging
through grade school, high school,
foreign travel and the University of
C alifornia, emerging with the degree
of LLB from the Hastings College of
Law in 1920.
The little bank grew rapidly, life
was fu ll of exciting events, and the
young L. M . was absorbing a great
fund of general banking knowledge.
From the tim e he could add and sub-

tract he was a constant and popular
visitor at the hank and its increasing
num ber of branches. H e seized o p
portunities to understudy clerks, tell
ers and m inor executives, worked part
time during the class year and fu ll
tim e during vacations, and by 1918
could no longer be denied a form al
place in the active life of the bank.
H e was put on the payroll in hum ble
capacity as a clearings clerk.
His interest in the individual em
ploye caused him to sponsor such
benefits as the Bankamerica Club for
social and athletic activities; the
Bankamerican Fam ily Estate plan,
which provides a program to pay
most of the cost of group life insur
ance, retirement pensions, hospital
and surgical coverage, and a profitsharing plan which provides substan
tial extra income for an em ploye’s
retirement years.
By the end of his first ten years
on the actual payroll, L. M . had
achieved m em bership on the bank’s
general executive comm ittee and had
been made vice chairm an of the board
of directors. On A p ril 7, 1929, he
married Anna Mercedes Collins. In

February of 1930 he succeeded his
father as president of Transamerica
Corporation, holding com pany which
at that tim e held the stock of Bank
of A m erica.
On February 15, 1932, L. M . was
appointed senior vice president of the
Bank of A m erica. On January 14,
1936, he was elected president o f the
bank and under his leadship that in
stitution has grown great in public
service, passing all other non-govern
ment banks in the volum e of construc
tive banking transactions, achieving
unsurpassed totals in deposits, loans,
capital funds and total resources, and
contributing vastly to both wartime
and peacetime productive efforts of
all branches of the national and local
economy.
Th e L. M . Giannini fa m ily hom e
is maintained at 29 A therton Avenue,
A therton, California, a suburban com
m unity, and a city apartment is m ain
tained at 945 Green Street in San
Francisco. There are two daughters:
A n ne, born in July, 1930, and V ir
ginia, born in M ay, 1932.

W h ile the demands on his tim e are

(Turn to page 32, please)

Northwestern Banker, April, 1952

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Federal Reserve Bank of St. Louis

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Federal Reserve Bank of St. Louis

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Nort hwest ern Banker, April, 1952

- J'

Independent Bunkers Announce
Convention Plans for M a y 131-20
IMING at the largest annual con
vention in the history of the In
A
dependent Bankers Association, the

course, top-flight entertainment for as
sociation members, their wives and
families. The program in detail will

officers and members of the general
convention committee expect to at
tract 2,000 independent unit bankers
from all the 48 states to the three-day
meeting to be held in Minneapolis on
May 18th to 20th.
Carl R. Pohlad, vice president of the
Marquette National Bank of Minneap
olis, has been appointed general chair
man of the convention.
The appointment was made by Guy
Sturgeon of Sheridan, Wyoming, pres
ident of the association. Mr. Pohlad
replaces the late Charles C. Rieger,
who was to have served as general
convention chairman. Mr. Rieger was
vice president of Marquette National
and head of the bank’s department of
banks and bankers.
The program, now being formulated
through the office of Ben DuBois, sec
retary, will feature several nationallyprominent speakers from the fields of
banking, industry and politics and, of

be published in the May issue of the

CARL R. P O H L A D
Independent Bankers
convention general chairman

orthw estern

anker.

The several convention committees,
and their chairmen, have been named
as follows:
Entertainment — F. R. Schlichting,
president of Drovers Exchange State
Bank, South St. Paul.
Finance—R. O. Bishop, president of
American National Bank, St. Paul.
Golf — A. W. Sands, president of
Western State Bank, St. Paul.
Hotel Reservations—C. Herbert Cor
nell, president of Fidelity State Bank,
Minneapolis.
Ladies’ Entertainment — Miss Gene
vieve Howe of Marquette National
Bank, Minneapolis.
Program—R. J. Julkowski, president
of 13th Avenue State Bank, Minneap
olis.
Publicity—H. S. Woodward, execu
tive vice president of Columbia
Heights State Bank, Minneapolis.
Reception — Charles J. Ritt, presi
dent of Midway National Bank, St.
Paul.
Registration — R. R. Nelson, vice
president of Camden Park State Bank,
Minneapolis.
Transportation — W. G. Kirchner,
vice president of Richfield State Bank,
Richfield.

^ ^O U R BANK

(

wants speed when it

presents a check or note for collection. The kind
of speed that means prompt presentation and

earliest availability of funds.
At American National we’re prepared to pro
vide that kind of action. Our staff is experi
enced, dependable, skilled at operating the high

service

speed machines that make swift service possible.
W e welcome your inquiry with the view to secur
ing you the most advantageous mail and express

geared

scheduling—both by rail and air.

to your need
for speed

A m e ric a n I%aI f o n a i B a n k
am/ Trust Company of Chicago
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

LA S A L L E AT W A S H I N G T O N , C H I C A G O 9 0 , I L L I N O I S

r
Northwestern Banker, April, 7952

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

N O W is the time
to capitalize on
this opportunity!
REACH FOR YOUR PEN TO D A Y-A N D
WRITE YOUR ORDER FOR THE FINEST
SALES AIDS IN THE HISTORY OF
AMERICAN EXPRESS TRAVELERS CHEQUES

Proven successful
in thousands of Banks!
This promotion kit was mailed to
all banks during February. If yours
hasn’t come to your personal atten
tion, please write to Olaf Ravndal,
Vice President, American Express
Company, 65 Broadway,
New York 6, N. Y.

It** t
If*“

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

The 1952 American Express Travelers Cheque promotion
program is thoroughly tested. Similar material used last year
resulted in “success stories” from banks across the nation. On
the basis of their reports, every item offered this year has
been tailored to do an even bigger job of making new
friends for your bank. It's the greatest coordinated campaign
ever presented by American Express—packed with proven
power to do a local job.

Y O U R 1952 A M E R I C A N E X P R E S S P O R T F O L I O
O F F E R S YOUR BANK T H E S E TE ST ED S A L E S AIDS!
•
•
•
•

Leaflets for statement enclosure!
Colorful point-of-sale displays!
Newspaper mats for local advertising!
Complete radio commercials!

«S í

Most of this material is good for use all year round. But the vaca
tion season is at hand! To insure receipt of imprinted leaflets in
time for May 31st statements . . . and other material for June and
July use . . . send now for the quantities you will need!

***’*!#?

nona
hoy*l fefe with,,

;

A merican E xpress T ravelers C heques
MOST WIDELY ACCEPTED CHEQUES IN THE WORLD
Nort hwest ern Banker, April, 1952

Public National Promotion
E. Chester Gersten, president of The
Public National Bank and Trust Com
pany of New York, announced that
George A. Friedle, manager and head
of the consumer credit department,
was promoted to vice president, and

in the consumer credit department
were Alfred D. Celia, George A. Evans
and Frank Korinek, promoted to as
sistant cashiers.

Increase Capital
Through the isuance of a 25 per cent
stock dividend, the Drovers National
Bank of Chicago increased its capital
stock from $1,000,000 to $1,250,000, and
the Drovers Trust and Savings Bank
increased its capital from $500,000 to
$625,000. Both capital increases were
voted at the February, 1952, stockhold
ers’ meetings. The combined resources
of the Drovers Banks are well over
$ 100,000,000.

Named Controller

CORRESPONDENT
ACCOUNT COVERS
CALIFORNIA

GEO RG E A. F R IE D L E
Promoted to Vice President

William Cohen, assistant manager in
that department, promoted to assist
ant vice president. Other promotions

Advancement of Howard A. Leif to
the post of controller of the Bank of
America was announced by L. W.
Giannini, president of the institution.
Mr. Leif began his career with the
bank as a bookkeeper at the Hum
boldt branch in San Francisco in 1923.
After progressing through various
branch positions he was made an in
spector for the bank in southern Cali
fornia. In 1948 he returned to the
San Francisco Head Office as chief in
spector and auditor, and it is from this
position he now moves to the control
ler’s office.

O n e account with Bank of
America (in either Los An
X

geles or San Francisco) gives
you direct routing through
out the state—enabling you
to send your items direct to
more than 300 communities.
This time-saving service
is m ade possible in C a li
fornia by Bank of Am erica’s
state-wide system of branch
banking.
B a n k of A m e r ic a
T r a v e le r s C h e q u e s
a r e k n o w n a n d h o n o re d t h r o u g h o u t
the wo rld. Sell them to your customers.

Poorly trained bookkeepers make more
costly errors— hurt customer relations!
Thoroughly trained bookkeepers are any
bank’s most valuable hidden assets!
EnterTRAINment’s Bookkeeper Program is
reducing error frequency and training
better bookkeepers for many alert banks.
A request on your letterhead brings the
success-tested facts without obligation.

iBank of America

NA TIO NA L J avSiV g ! ASSO CIATION
MEMBER

FEDERAL DEPOSIT

INSURANCE

CORPORATION

Northwestern Banker, April, 1952

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

S * t t e n lr a in * K e * t t , inc.
Directors: Arthur J. Linn, Edwin G. Uhl, James E. Potts

7 3 4 15tli St., N.W., Washington 5 , D. C.

C on tin en tal Illinois
Bank w elcom es the
opportunity to handle
you r orders f o r the
p u rch a se or sale o f
U. S. Government,
State and Municipal
securities.

Continental Illinois National Bank

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

and Trust Company of Chicago
LOCK BOX H, CHICAGO 90, ILLINOIS
M em ber Federal Deposit Insurance Corporation

Nort hwest ern Banker, April, 1952

Tax Investment Considerations
By WAYNE HUMMER & CO.
Chicago
OW that we are in the new year
the time is opportune for banks
to review carefully the 1952 budget.
In the preparation of a budget, we
assume that most banks first deter
mine what their net income should be,
based upon the results during the last
year or two. With this information
the usual procedure is to then list all
operating costs. While these items for
the most part are more or less fixed,
nevertheless, continued study often
reveals possibilities for reducing a
number of items. For example, the
purchase of new equipment frequently
makes it possible to reduce the em
ployes’ salary item.

Fortunately, we can control our in
come to a greater extent. We all know
the average rate of interest on the
various classes of loans and also the
effect of a change in interest rates on
our income from loans. While condi
tions vary in different localities, it is
frequently possible to increase interest
income either through an increase in
loans, or increased interest rates, or
both. Inasmuch as interest from loans
is the principal source of income for
most banks, certainly banks are en
titled to charge rates of interest suf
ficient to provide whatever income is
budgeted from this source. At any
rate, the minimum amount of income

Serving both Industry
and Agriculture
Located in the heart o f the Union Stock Yards
and Chicago’s great Central Manufacturing
District, we have served farmer and manufac
turer as well as hundreds o f correspondent
banks for over three-quarters o f a century. This long and
varied experience is at your disposal. If you are seeking a
Chicago connection,, we cordially invite you to write us.

T/e

LIVE STOCK
tA alicna/ BA N K

necessary on loans should be budg
eted.
The other principal source of bank
income is from bonds and securities.
Bonds offer an opportunity not only
to secure income, but also to control
the Federal tax bill, at least to some
extent, through the purchase of taxfree issues. Also, now that many
government and corporate bonds are
selling at a discount, there are oppor
tunities to minimize taxes by conver
sion of ordinary income taxable at
regular rates into capital gain income
taxable at 26 per cent. Every bank,
regardless of size, therefore, should be
interested in converting as much in
come as possible into capital gains.
This is particularly true since the
first bracket corporate rate has been
increased to 30 per cent. Earnings
in excess of $25,000 are subject to a
52 per cent tax, or just double the
capital gain rate. This compares with
an 82 per cent tax rate on any earn
ings in excess of $25,000 subject to
excess profits taxes. For the latter
banks there appears to be no alterna
tive than to consider tax free issues
and discount bonds to minimize taxes.
We continue to urge banking institu
tions to study their tax bracket and
to compute their returns on new in
vestments after taxes rather than be
fore. This should be determined at
the beginning and not the end of the
year.

Field Warehousing
Organized last December as the Na
tional Field Warehouse Company, the
organization has recently incorporated
and is now known as the National
Field Warehouse Corporation. Head
quarters are in New Orleans.
Officers of the Corporation are Jay
Weil, Sr., president; Stanley D. Hart,
executive vice president, and ©eorge
Borresen, vice president. While the
Corporation is planning to do business
in all states, at the present its activi
ties are mainly confined to the south.
Mr. Weil has been associated with
field warehousing for more than 30
years and has been one of the princi
pal developers of the industry.
Mr. Hart is also nationally known
in all branches of field warehousing
and has traveled extensively in the
interests of the industry. He will con
tinue to travel widely, installing new
offices and supervising the operations
of field warehouses.

tr r a y o

ESTABLISHED 1868

UNION STOCK YARDS

A l e n tie r Federal D eposit Insurance Corporation

Northwestern Banker, April, 1952

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

Dividend
The board of directors of the Harris
Trust and Savings Bank, Chicago, de
clared a quarterly dividend of $3 on
the capital stock of the bank, payable
April 1, 1952, to stockholders of rec
ord March 17, 1952.

Jackson Becomes Director
T. Stanley Jackson, since 1947 asso
ciated with the American Express
Field Warehousing Corporation as
vice president, has also been named
a director of the Corporation, as an
nounced from the home office in New

T. S T A N L E Y JACKSON
Elected a director

kl nf\A \\ P .W

York. Mr. Jackson, from his North
west Division office for the Corpora
tion in Minneapolis, has charge of ten
states in that area.
Following 20 years of association
with the Canadian Bank of Commerce
in Canada and the United States, Mr.
Jackson for the past 20 years has been
closely connected with field warehous
ing, having a wide acquaintance with
banks and bankers throughout the
nation.

important to you?

May Dividend

ing service, special information, or off-the-beaten-

S prompt, efficient collection of
Wisconsin checks and drafts
Do you ever need first-hand

facts about sources of supply in Wisconsin? . . .
credit information? . . . market data? . . . who’s
who ?
Whatever your requirements — routine bank

The board of directors of the City
National Bank and Trust Company of
Chicago, at its regular March meeting
declared a dividend of 45 cents per
share of stock, payable on May 1, 1952,
to shareholders of record at the close
of business on Monday, April 21, 1952.

patli assistance — the chances are that the facil
ities, long experience and statewide contacts of
the First Wisconsin National Bank of Milwaukee
can supply the answer.
Established in 1853, this bank is the largest in

Bank Women
The annual convention of Associa
tion of Bank Women will be held at
the Hotel Dennis, Atlantic City, New
Jersey, September 25th to 28th, as an
nounced by President Nancye B.
Staub. This association is the only
national organization of women bank
ers.
Sara Baylis Johnson, director of pub
lic relations and a director of the
Bank of Rockville Centre Trust Com
pany, Rockville Centre, New York,
has been named general convention
chairman by President Staub.

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

the state . . . long high on the list of the largest
banks in America . . . with unparalleled corre
spondent contacts throughout Wisconsin.

•Mem ber of ■
the Federal Deposit
Insurance Corporation

FIRST WISCONSIN
NATIONAL BANK
O F

M I L W A U K E E
Northwestern Banker, April, 7952

How Veterans Van He Helped
To Secure Situ ml Farm

It is apparent that the farm loan un
der this program has future possibili
ties provided better cooperation can
be obtained through private lenders.

(Continued from page 19)

tration, professors of farm manage
ment in the Extension Department of
Agricultural Schools, economists, sec
retaries of state bankers associations,
lenders — including both bankers and
Production Credit Association secre
taries—and veterans engaged in farm
ing with the assistance of G.I. loans.
In obtaining this information and
making these contacts, trips have been
made to Ames, Iowa; Columbia and
St. Louis, Missouri; Omaha and Lin
coln, Nebraska; Minneapolis and St.
Paul, Minnesota; Wichita, Kansas, and
the Central States School of Banking
at the State University, Madison, Wis
consin.
3 . It is recognized that the present
demand for farm loans is on the de
cline for the following reasons:
A. Four years have elapsed since
the occasion of hostilities on July
25, 1947. Many farm-minded vet
erans have already made their
start in farming and have either
become established with the aid
of a G.I. loan or a conventional
loan.
B. Present lack of interest on the
part of lenders because of ad
vancing interest rates and a gen
eral tightening up of money due
to an over-extended credit posi
tion in the case of many lenders.
C. Lenders, along with the general
public, have become accustomed
to young men going into the serv

ice and the patriotic incentive to
be helpful has about disappeared.
Business reasons predominate in
the making of loans.
D. As of July 25, 1951, there had
been 61,546 farm loans approved
in the total amount of $237,887,104. As of the same date, 2,717,000 loans of all types had been
approved in the total amount of
$15,912,783,238, farm loans repre
senting 2.3 per cent of this total.
While approximately 17.5 per
cent of eligible veterans have
made loans under the program,
only .4 per cent have made farm
loans. In five midwest states in
the corn belt the number of farm
loans made is equal to 2.1 per
cent of the total number of farm
ing units.

The relationship of loans paid in full
to loans closed, indicates that 36.5 per
cent of all farm loans have been paid
in full. At the close of 1945 claims
paid equaled 1 per cent of loans closed.
As of July 25, 1951, this relationship
had increased to 2.5 per cent.
While the volume trend is definitely
down, it would appear that only a
small percentage of veteran farmers
have been able to make use of the
G.I. farm loan. In some localities they
have been made conventional loans
with a co-signer on the note, Many
of these veterans have prospered and
will have their entire entitlement
available for the purchase of a farm.

You should enjoy the luxury
of this five million dollar
vacation paradise . . . hun
dreds of gorgeous acres and
palm trees . . . on the ocean
between Ormond and Day
tona Beach.
Complete resort facilities . . .
recreations,
amusements
and
gorgeous sightseeing.
THE WORLD'S LARGEST FAMILY RESORT

DAYTONA

BEACH,

FLORIDA
Northwestern Banker, April, 1952

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

4 . There are two distinct types of
farm credit—personal property farm
loans and real estate loans, both of
which are eligible under the act. Rec
ommendations will be made first on
personal property loans, which type
is in greater volume and presents
more problems, both from a credit
and operating standpoint, than real
estate loans, which will be dealt with
separately.
A. Personal property farm loans are
made largely through country
banks and Production Credit As
sociations, both supervised lend
ers. A recent report of the Bu
reau of Agricultural Economics
states that commercial banks ac
count for three-fourths of the
entire short-term f a r m debt,
which has more than doubled
since 1945. Production Credit As
sociations are probably the next
largest supervised source for this
type of credit. They have not
participated in the program as
generally as country banks for
the reason that their general cus
tom and practice is to make loans
for one year and then renew the
loan, based on a pre-arranged re
payment schedule.

Summary
Personal Property Loans
1. Lenders are not acquainted with
possibilities as to rate of interest and
security under the insured credit plan
of operation.
Fuller participation
would have been obtained had a better
job of education been performed in
the earlier stages of the program. The
potential would be materially in
creased should Korean war veterans
be included under the benefits of the
act.
2. Interest Rates. The interest rate
is not commensurate with the work
and supervision required. Should be
increased to 5 per cent. This would
involve a legal enactment.
3. Guaranty. The guaranty is not
adequate as related to present costs.
Should be increased to $4,000. This
would involve legal enactment.
4. Appraisals. The appraisal meth
od is satisfactory.
5. Forms. Forms and paper work
are in the main satisfactory. A few
changes in forms are suggested.
6. Permissible Charges. To gain the
objectives of fuller participation and
better supervision, two changes are
recommended:
(a) Allow the lender to make a flat
charge of 1 per cent of the

31
amount of loan at the time of
closing.
(b) Permit an inspection charge of
$15 or one-half of 1 per cent of
unpaid balance of loan, which
ever is greater. This would in
volve a change in regulations.
7. Reporting of Defaults. Require
that defaults be reported within 30
days in the case of loans where pay
ments become due not more frequent
ly than six months. This would in
volve a change in regulations.
8. Maturity. Reduce maximum ma
turity to five years. This would in
volve a change in regulations.
9. Guaranty Commitment for Oper
ating Doans. The plan contemplates:

The present status of the program
and changed economic conditions
make it advisable that certain changes
be made if the program of farm loans
to veterans is to meet its full objec
tive, throughout the remaining six
years of operation.—The End.

New Director
B. E. Kinney, president of The H.
D. Lee Company, was elected a mem
ber of the board of directors of City
National Bank and Trust Company,
Kansas City, by the bank’s stockhold
ers. Mr. Kinney takes the place on
the board left vacant by the death of
R. B. Gaywood, who was president of
the Lee Company.

Mr. Kinney has been with the Lee
Company 33 years, having gone to
work there after his discharge as a
lieutenant of infantry in 1919. He
has served several terms as president
and chairman of the board of the
Union Garment Manufacturers Asso
ciation of America.

Officers Named
At a meeting of the board of direc
tors of The National City Bank of
New York, Gaillard B. Smith was ap
pointed an assistant vice president,
and B. Douglas Hill was appointed an
assistant cashier. Mr. Smith will be
located at the Head Office and Mr. Hill
in the middle western district.

(a) Reservation of entire entitle
ment in name of lender.
(b) Prior approval of an application
to finance a veteran, based on a
farm plan.
(c) Liquidation of the debt from
farm income over a definite pe
riod as a foundation for future
independent operation by the
veteran farmer.

Summary
Real Estate Mortgage Loans
1. Source of Credit. Insurance com
panies and commercial banks are the
main sources of credit. Insurance
companies appear to be making a bet
ter type of loan than the local banker.
An insurance company loan is general
ly on a self-sustaining farm with ade
quate cash payment to back up the
guaranty. The local bank is more in
clined to make loans on non-economic
units, often for part-time operations,
due perhaps to inadequate size of
guaranty and local pressure.
2. Interest Rate. While not in line
with present yields, it is believed that
this condition may adjust itself, and
no change in rate is recommended.
3. Guaranty. Increase the maximum
available to $8,000—leave the guaranty
at 50 per cent. This would involve a
legal enactment.
4. Permissible Fees

and Charges.

Make permissible a flat charge of 1
per cent of the amount of loan or $50,
whichever is greater. This would in
volve a change in regulations.
5. Processing and Forms. Satisfac
tory, with a few minor changes to
forms.
(i. Appraisal. Present plan satisfac
tory, with emphasis placed on obtain
ing qualified farm appraisers.
7. Defaults and Claims. Require re
porting of defaults within 30 days on
any loan calling for payments in pe
riods of not less than six months.
In making suggestions and recom
mendations, it is not intended to cre
ate the impression that the farm loan
program is not working satisfactorily
at the present time.

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

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

DRGYERS N A TIO N A L B A N K
DRO VERS T R U S T 0 S A V IN G S B A N K
U N I O N

S T O C K

Y A R D S ,

C H I C A G O

Members, Federal Deposit Insurance Corporation

Northwestern Banker, April, 7952

Two Directors
Following the meeting of the board
of directors of The Inter-State Nation
al Bank, Kansas City, David T. Beals,
president, announced the election of
Dr. Franklin Murphy, chancellor of
the University of Kansas at Lawrence,
Kansas, and Robert W. Wagstaff, exec
utive vice president of The Vendo
Company of Kansas City, Missouri, as
directors.

Building Changes
Certain changes in the new Republic
National Bank Building in Dallas have

been announced by Fred F. Florence,
president of the Republic Bank.
Two additional floors have been
added to the section facing Pacific and
Ervay Streets and other changes made
in the exterior appearance of the
building base, all of which adds mate
rially to the beauty of the structure,
and will further enhance its place in
the already impressive Dallas skyline.
Floor space has been increased to 822,000 square feet and will enable the
bank to expand facilities as future
needs arise.
The first structural steel for the new

building has been placed into position
by the American Bridge Company,
subsidiary of the U. S. Steel Corpora-

What the new building of the Republic Na
tional Bank will look like when completed.
Several changes have been made from the orig
inal plans.

tion. Some 3,000 tons will be used for
the four basement levels, and it is ex
pected that this phase of construction
will be completed on or about May 1st.

BANKERS YOU KNOW
(Continued from page 22)

tremendous and liis daily business
schedule would break the back of any
ordinary m an, L. M . takes tim e for
personal service in the general w el
fare. H e is either an officer, director,
or m em ber of m ore than fifty differ
ent business, civic, and social enter
prises and activities, w hich gives some
idea of his untiring perform ance in
the realms of public service.

’’FOR THE TIME OF YOUR LIFE"

| Biloxi, Mississippi * Directly on the Gulf of Mexico (
Plan to spend carefree days this winter af Hotel
Biloxi a year ’round vacation resort. Every resort
^ activity is here to enjoy, plus splendid accommo-/
Sf
dations and excellent food,
rttl
C O LO N IA L ROOM for your dining pleasure.
CREO LE ROOM for nightly dancing.
AMPLE PARKING AREA—GULF COAST RENT-A-CAR at Hot^T
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FOR RESERVATION INFORMATION

Hit See your Travel Agent or write direct for folder X
Louis P. Woods, Mng. Dir., Hotel Biloxi,
Biloxi. Miss.

m
Northwestern Banker, April, 1952

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

itfi

A trem endously m odest m an, and
one who insists on m inim izing his
m any abilities, L. M . Giannini has one
particular accom plishm ent that is
outstanding— his ability as a banker.
For m any years, while his father,
A . P. Giannini, was the field general.
L. M . was the chief of staff, the plan
ner and strategist, m aking up the per
fect team. W h e n he assumed the
presidency of the Bank of A m erica
early in 1936 he assumed fu ll leader
ship m ore and more. For the past ten
years, the period of the greatest and
most impressive growth of the Bank
of A m erica, L. M . has been the leader
o f an earnest and efficient organiza
tion. A t any gathering of em ployes
his appearance is inspiring, his word
is magic.

IN V E S T M E N T S

M on ey
Continues

S eek in y in vestm en t
to ilo iv

Good Portfolio Strategy Suggests Going Slow on Long-Term
Purchases, in Order to Take Advantage of Periodic Rising Yields
By RAYMOND TRIGGER
Investment Analyst
New York City
the new-year reinvestment market for
a public issue of $15,000,000 of convert
ible preferred stock, but got accommo
dation in a private placement of long
term debt of twice the amount on a
3% per cent interest basis.

LTHOUGH investment money
keeps piling up at an increas
ing rate, and although some
slackening of business activity is vis
ible as well as the end of shortages
in certain key materials, the bond
market’s reflection of these bullish
factors is inconstant. Regardless of
the pull of certain economic cross
currents, the run of the money tide at
the moment still tends toward higher
yields. Delayed-action repercussions
of inflationary kind lurk in the defense
spending that lies ahead; and the in
ternational commitments of United
States capital for export remain a seri
ous challenge to our money market for
a period whose end cannot be fore
seen.

Utilities

Rising Yields
Nevertheless, money seeking invest
ment in prime corporate and other
risks is flowing at such a rate that any
momentary lull in capital requisitions
brings reaction at once in a settling
of yields. This happened in the “Janu
ary reinvestment demand,” which,
while holding over, is no longer equal
to the new issue coming to market.
For the present, it would seem to be
good portfolio strategy not to be stam
peded into long-term purchases during
such market lulls, but instead to take
full advantage of the rising yields
likely to accompany the recurring peri
ods of new-issue congestion that still
seems to be ahead. The month of
March is a good instance of such con
gestion.
Facing the spring of 1952, the pri
mary market for new corporate securi
ties must cope with the heaviest
requisitions for new capital since the
Federal Reserve System last spring
unpegged the market for government
securities. More than $1,000,000,000, in
cluding the March total, is to be raised
on bond issues by the summer and up
wards of $200,000,000 by the sale of

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

new common and preferred stock. This
aggregate includes, of course, the $550,000,000 issue of American Telephone
and Telegraph debentures on which
the company stockholders will vote
this month.

Private Placements
As for private placement accommo
dations, insurance companies, with a
backlog of $4,500,000,000 of lending
commitments at the beginning of the
year, are making further new commit
ments at the rate of $700,000,000 a
month. Indications are that the pres
ent backlog may be shrunken by take
downs ■of about $3,000,000,000 by the
end of June. All this means that insur
ance companies in general are under
no compulsion to accept the yields
designated for debt issues being offered
publicly; in fact, the top-ranking com
panies are out of the market altogether.
The competition between the public
and private markets for institutional
money was brought into relief when
the Marshall Field Company missed

The rise of public market yields in
the face of the big capital requisitions
was reflected strikingly in the pricing
of a succession of major negotiated
underwritings of industrial debt securi
ties that reached the market early in
March. For $25,000,000 of AA-rated In
terstate Oil Pipe Line bonds, under
writers designated a yield of 3.14 per
cent; for $50,000,000 of A-rated Ameri
can Tobacco Company debentures, 3.31
per cent; for $25,000,000 of AA-rated
Inland Steel Company mortgage bonds,
3.20 per cent; and for $10,000,000 of Arated United Biscuit Company obliga
tions, 3.22 per cent. Banking syndicates
bidding for public utility issues took
the cut, with the result that yields of
all grades of prime utility new-issue
risks rose in the first weeks of March
by % of 1 per cent to X
A of 1 per cent.
The yields in the secondary market,
which tend to trail those of the newissue market, gave ground, too, but
only slightly compared with the new
issues.

New Experience
This abrupt zigzagging of corporate
yields in response to bulges in the sup
ply of or in the demand for invest
ments is something of a new experi
ence for the postwar market to cope
with. However tempting to market
clairvoyants, the abrupt movement of
yields upward or downward need not
carry at all any preview of a new secu
lar trend. It may well be that the
current sensitivity only stems from the
fact that the Federal Reserve System
is no longer underpinning the bond
market with its vast resources. In
time, the new sensitivity may be reNorthwestern Banker, April, 1952

Investments

garded as a normal symptom of true
“stability” instead of “instability.” The
change from the “fixed stability”—or,
to state incorrectly, the fixity—of the
past decade is not easy to get used to.

The refinancing was successful in
the sense that 91 per cent of the called
2 V 2 s were exchanged, but this out
come was due only to the fact that the
Federal Reserve entered the market
and bought $292,000,000 of the ex
changeable bonds which were offered
to the market by corporations and
other investors preferring cash. Marketwise, the 2% per cent interest rate
represented generous terms, and the
exchange “rights value” that at once
accrued to the called bonds was in it
self an incentive for corporations and
other short-term investors to sell out
the old issue at the premium developed
by its exchange privilege.
But regardless of how the market
test was handicapped by the coinci
dence of the March 15 tax squeeze, the
fact that 40 per cent of the called bonds
were not willingly turned in by pri
vate investors for the new 2%s hardly
bespeaks any great hunger for the
type of security which the Treasury
saw fit to offer. A concurrent offer of
new eleven-and-one-half-month certifi
cates of indebtedness in exchange for
$9,524,000,000 of maturing certificates
resulted in 93 per cent of the issue be
ing turned in, with the Federal’s share
totaling $3,817,000,000, of which $657,000,000 was bought in the open market
from investors after the terms of the
exchange were announced.

Treasury Cautious
The inconclusiveness of the capital
market’s present status was reflected
in the cautious approach of the Treas
ury to its major spring financing prob
lem. Option to call $6,335,000,000 of 2
per cent bonds on June 15 was passed
up, as the market had expected; but
the Treasury decided, too, not to call
$1,500,000,000 of 21/4 per cent bonds of
1955-1952. This marked the first time
that a callable bond bearing interest
of more than 2 per cent had been let
run since the war’s end. More signifi
cant, however, was the parallel deci
sion of the Treasury to refund $1,023,568,350 of 21/2 per cent bonds called
for payment March 15 into 2% per cent
bonds payable in seven years and call
able in five. This marked the first
issue of marketable bonds by the
Treasury since 1945.
The decision to issue a new market
able bond was taken to reflect the
continued tenure of the Treasury-Fed
eral Reserve accord, which has just
had its first anniversary. Possibly, it
reflected a wish to test the receptive
ness of the market to a new supply of
intermediate term investments of
bank-eligible kind. If so, the timing
was handicapped because its success
as an exchange offer would be neces
sarily clouded by the concurrent mon
ey pinch of the year’s major tax period.
Corporations holding the called bonds
as a source of March 15 tax money
would be called on to leave the funds
invested instead in a security having
a minimum term of five years.

Deficit Financing a Guess
The prospect of substantial new defi
cit financing by the Treasury either
before or after the end of the fiscal
period on June 30 continues to provoke
much conjecture, even though the fac
tors on which such need for money
would rest—namely, the aggregate of
spring tax collections and the rate of
speed-up in defense spending—cannot

M U T U A L IN V E S T M E N T F U N D S

M U TU AL
STOCK FU N D
SE L E C T IV E FUN D
F A C E -A M O U N T C E R T IF IC A T E C O M P A N Y

^ Y Y i i /< Y j S Y N D IC A T E OF A M E R IC A
☆
P r o s p e c tu s e s o f th e s e c o m p a n i e s a v a ila b le a t o f f ic e s
in 148 p r i n c ip a l c itie s o f t h e U n i t e d S t a t e s o r f r o m
th e n a tio n a l d is tr ib u to r a n d in v e s tm e n t m a n a g e r.

D IV E R S IF IE D S E R V IC E S , IN C .
Established 1894

MINNEAPOLIS 2, MINNESOTA

be surmised reliably at this time. Bar
ring an unexpected relaxation in inter
national tension, the hunch persists
that the Treasury cannot long delay
beyond the summer big requisitions
on the market. Unless a softening of
the internal economic structure should
by that time set in measurably, driving
bond prices up and yields down, it is
not likely that the Treasury to start
with, will venture beyond the aug
mented sale of discount bills—both tax
anticipation bills and otherwise—to
raise what new funds may be needed.
There is plenty to suggest that the
Treasury and the Federal Reserve are
not convinced that the present harden
ing of money cost will have a tenure
long enough to make the Treasury
borrow substantially new funds in the
long-term market at the 3 per cent
money, cost which a projection of pres
ent market conditions would at the
least require.—The End.

Northwestern Banker, Apri l, 1952

NEWS AND VIEWS
(Continued from page 18)

When traffic did begin to pass
through the canal, excellent banking
facilities were found at each end of
the canal, which was first blueprinted
in almost its exact present form by
Balboa in 1515 A.D. The National City
Bank of New York maintains three
branches there, one in the city of
Panama, one at the Atlantic terminus
of the canal, Cristobal, and one at the
Pacific terminus, Balboa. Leigh R.
Cramer, city of Panama branch man
ager, heads the Isthmian branch oper
ations.
* =t= *
San Francisco’s oldest bank, indeed
the oldest in the west, celebrated 100
unbroken years of banking last month.

-v

Wells Fargo Bank & Union Trust
Company, standing at the head of

Montgomery Street, only a few blocks
south of the shuttered, red brick build
ing it occupied in 1852, was founded
as Wells Fargo & Company, Banking
and Express.
From the first, Wells Fargo played
a leading part in the commercial de
velopment of the west. With its ex
press business, Wells Fargo carried

— — Oldest in Des M oines-- —....
Your Savings Account
Now Insured Up To

$10,000
By Federal Savings & Loan
Insurance Corporation

Des Moines Building-Loan &
Savings Association
ELMER E. M ILLER
Pres, and Secy.

210 6th Ave.

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

HUBERT E. JAMES
Vice President

Dial 2-8303

-f

Investments
precious metals, mail, freight and pas
sengers between San Francisco and
the gold and silver “diggin’s,” wher
ever they were.
I. W. Heilman, a grandson of Isaias
W. Heilman, became the 15th president
of Wells Fargo Bank in October, 1943,
carrying forward a family tradition of
banking begun in 1868.—The End.

National Cash Register
Commenting on the activities of the
National Cash Register Company of
Dayton, Ohio, an article in a recent
issue of Investor’s Reader, house or
gan of Merrill Lynch, Pierce, Fenner
& Beane, reads in part:
Along with a Singer sewing machine
and Coca-Cola, a National cash regis
ter ranks among the most widely used
U. S. products in the world. From
busy department stores in New York
and Paris to outlying trading posts in
Laborador and Rhodesia, the registers
of National ring up sales in 92 coun
tries.
While the registers record every
thing from Thai bahts and Japanese
yen to British shillings and Austrian
schillings, they all help ring up dol
lars for the National Cash Register
Company of Dayton, Ohio, its 15,000
stockholders and its 33,000 employes
throughout the world. Last year NCR
(the company uses this symbol but on
the Big Board it is just NC so the tick
er can move faster) racked up world
wide sales of $212,000,000. These shat
tered the former record of $170,000,000
in 1950 and dwarfed the prewar peak
of $58,000,000 in 1929. Overseas sales
contributed $68,000,000 to 1951 sales v.
$46,000,000 in 1950 and $23,000,000 pre
war.
Despite the company’s name, cash
registers are only one component of
this mighty volume. NCR started to
branch into accounting and bookkeep
ing machines 30 years ago. Now these
billing, pay roll, bank posting, etc.,
machines account for about 40 per
cent of all sales and most NCR men
think the accounting machines will
eventually be the company’s biggest

item. NCR has also entered the add
ing machine business, which repre
sents around 5 per cent of total opera
tions but is growing.

Prospects Good
For 1952 as a whole, “export trade
should continue in good volume and
may run moderately ahead of last
years,” says the Bank of Montreal in
its Business Review, devoted to an
analysis of Canada’s trade picture for
1951 and the prospects for the year
ahead. While pointing to “elements
of uncertainty,” the Bank of Montreal
regards it as probable that “ Canada’s
over-all deficit in trade goods and serv
ices should this year be measurably
smaller than in the year passed.”
The first half of 1951 began, the bank
recalls, with the unexpected reappear
ance of a “very large adverse balance
of commodity trade with our nearest
neighbor.” But, in the second half of
the year, the merchandise deficit in
trade with the U.S.A. “narrowed rap
idly” and “exports to all countries
ran substantially in excess of total
imports, thus completely reversing the
earlier and rather disturbing picture.”
The sharp reversal of the balance of
trade with all countries was caused,
in large measure, the Bank of Mon
treal states, by a “further upturn in
an already rising export curve” and by
a “clearly defined break in the for
merly buoyant course of imports.”
This improved trade balance ac
counted, in part, for the gradual
strengthening of the Canadian dollar
in the second half of the year.

IV e o ffe r
f o r sale
the notes of
these
representative
finance
companies
Aid Investment & Discount, Inc.
Akron, Ohio

Automobile Banking Corporation
Philadelphia

Bilderback Inv. Trust
Champaign, 111.

S. W. Coe & Company
Springfield, Illinois

Colonial Finance Company
Lima, Ohio

Commerce Acceptance Co.
Atchison, Kansas

Commercial Discount
Corporation
Chicago

Consolidated Finance Corp.
Indianapolis, Ind.

Contract Purchase Corporation
Detroit

Interstate Finance Corporation
Dubuque, Iowa

Interstate Securities Company
Kansas City, Mo.

Mercantile Acceptance
Corporation
San Francisco

Mercantile Discount Corporation
W

ayn e

um m er

& Co.

C H IC A G O

Chicago

Merchants Acceptance Co.
Chicago

Mossier Acceptance Co.
Houston, Texas

INalional Discount Corporation
South Bend

North American Acceptance
Corporation
Chicago
NEW YO RK

STO C K

EXCH ANGE

Northern Illinois Corporation
De Kalb, III.

Securities Acceptance
Corporation
Omaha

Winter & Hirscli, Incorporated

FIRST OF IOWA CORPORATION
IOWA AND GENERAL MARKET MUNICIPALS
PUBLIC UTILITY, INDUSTRIAL AND RAILROAD SECURITIES
IOWA CORPORATE SECURITIES
UNDERWRITERS

DISTRIBUTORS

200 EQUITABLE BUILDING
DES MOINES 9, IOWA
Phone 4-7158

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Federal Reserve Bank of St. Louis

Chicago

A SH W ELL

& COMPANY

176 W E ST ADAM S STREET
CHICAGO, ILL.
Commercial Paper

Collateral Loans

Nort hwest ern Banker, April, 1952

L s t -transit k H * *
E

ve r y

D A Y you face the possibility of losing

your transit letters en route to out-of-town
banks. But you’ll be able to take all such losses
ivithout a loss . . . when you have Recordak
microfilm copies.
From these photographically accurate
and complete records, Recordak will produce
facsimiles which will be honored in lieu of the
original checks. And the job will be done
promptly . . . free of charge— in accordance with
Recordak’ s established policy covering all transit
l.W h en transit letters are reported lost

items lost or destroyed en route.

destroyed en route, simply send your Recordak
Microfilms to the nearest Recordak Processing
Center— and relax.

2. Recordak maintains

24 strategically located

2, In short order

you’ll receive photographically accurate and

Film Processing Centers . . . where skilled tech

complete facsimiles of the lost transit items . . . will be able to

nicians work with specially designed professional

send out a duplicate transit letter in the next mail.

equipment. Your assurance o f prom pt service . . .

top-quality resu lts.

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Federal Reserve Bank of St. Louis

Thus, you’ll save time, effort, dollars . . . and spare your de
positors considerable inconvenience.

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Federal Reserve Bank of St. Louis

laced p 'omP it
fc h a y e -

Facsimiles are
produced from
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copies.

Write today for a free copy of " I n
Bank After Bank After B ank.” It gives
details on Recordak services and systems
. . . and the complete line of Recordak
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originator of modern microfilming—
and its application to banking systems
"Recordak” is a trade-mark

IN S U R A N C E

Sell in y id ea s far H anker A gen ts
insure Valu able Heeords
B ERNARD C. McMULLEN, super
intendent in the Employers’ Group
home office burglary and plate glass
department, relates in The Em ployers’
Pioneer the story of how one of their
agents showed an architect friend what
a loss it would be if his expensive
plans and drawings for a big project
were lost or destroyed. He points out
other prospects:
Architects aren’t the only ones who

Nowadays, there are all kinds of valuable papers
around, particularly with reactivation of defense
plants.

need coverage against destruction of
valuable papers. “Valuable papers” as
used in the policy can mean books,
records, maps, drawings, abstracts,
deeds, mortgages, manuscripts, docu
ments and similar written, printed or
otherwise incribed papers and docu
ments used by the insured in his busi
ness.
Even a quick review of your clients
will indicate whether or not among
them is a prospect or two for a de
struction of valuable papers policy.
“We microfilm our records and im
portant documents,” some of them
might object.
A corporation official, for example,
said to one agent, “ If these books are
lost, we have photographic copies
which will enable us to reproduce
them.”

“ How much will it cost you to do
this? Do you have insurance for
that?” the agent asked.
The official had to admit that he
hadn’t thought about that particular
angle. He further admitted that re
producing the books even from photo
graphic copies would run into consid
erable money.
Microfilming, photocopying, or re
producing drawings, documents, maps,
etc., by any other method, does not
provide the complete protection many
a client should have. Of course, any
such method of retaining a record is
invaluable. But once the originals are
lost, reproducing a duplicate set of
plans from photocopies, for instance,
can be a costly job. With a destruction
of valuable papers policy, however,
an insured who has microfilmed his
records is sure at least of having his
records reproduced at no cost to him
if they should be destroyed.
Such a policy can come in very
handy. It provides coverage for all
loss, or destruction of, or damage to
valuable papers while they are within
the insured’s premises. There is, how
ever, a war exclusion clause that
should be pointed out. A good selling
point though is that coverage is also
provided when because of imminent
danger of their destruction, such
papers are removed to a safer place.
Outside premises coverage is also
available.
Nowadays there are all kinds of val
uable papers around, particularly with
the reactivation of defense industries.
There are government offices, defense
projects, engineering concerns, ship
builders and many others who handle
valuable papers. There are manufac
turers working on defense projects.
It’s a field worth looking into as far
as the destruction of valuable papers
policy is concerned.

Scarborough’s Loss Prevention program will save your
bank many headaches and many dollars. It is yours
along with the broadest protection at the lowest cost.

S a les M e s s a g e
F o r ita s in e s s F ir m s
A brief, descriptive message of an
important line of commercial coverage
for your customers is suggested by
Travelers’ Protection in this fashion:
A pound of paper was picked at ran
dom from t h e accounts receivable
ledger of an appliance distributor.
A few seconds with an adding ma
chine disclosed that the sheets in the
pile recorded open accounts worth
$94,226.53 to this business.
A pound of your ledger sheets might
not represent this much — or they
might represent a lot more. But we
believe you’ll agree that—pound for
pound—your accounts receivable ledg
er is the most valuable paper your
business owns.
It is a source of ready cash—an as
surance that you’ll be able to keep on
doing business. And if these records
should be destroyed by fire, flood, ex
plosion, or lost through burglary or
theft, your business would be in a
tough spot.
You need never run that risk. Ask
us about Accounts Receivable Insur
ance.

in c r e a s e L im its
On A a to P o lic ie s
Ways agents can help offset the bad
experience in auto lines are outlined
in American A rrow by the American
Casualty Company of Reading, Penn
sylvania':
It is one of the more irritating as
pects of the insurance business that
the line which produces the greatest
volume with the least effort is one
which at best permits the industry to
break even, and more frequently yet,
shows up in the form of ominous red
figures on the balance sheets.
It happens, however, that it is with
in the province of every agent to do
his part in making automobile cover-

rg i S c a r b o r o u g h &
■1C o m p a n y
c°

unselors to Banks

FIRST N A T I O N A L BANK B U I LD I N G • C H I C A G O 3, IL L I N O IS . STate 2- 43 2 5

Northwestern Banker, April, 1952

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

Insurance
age at least moderately profitable, by
doing these four things:
1. Consider limits of $10/20 as the
minimum standard limits on any pri
vate passenger or commercial car.
2. Consider $500 medical payments
as the minimum which you will write.
3. Sell still higher limits whenever
possible: i.e., $25/50; $50/100 and
$100/300. The added cost is negligible.

P e r s o n a l N o te s
L e n d In fo r m a lity
A word in behalf of the informal
note, and its value to you, comes from
Ohio Casualty Pointers:
Students of the technique of directmail promotion have learned that an
informal note, written on a sheet from
a scratch pad, often produces better
results than the more formal and
lengthier letter. For example, a pen
cilled note like this, clipped to a pam- phlet or to a medical payments or
similar broadening endorsement:
JIM: You need this. Please call
me if you’d like to discuss it .—
JOE.

Here are three ways that local agen
High limits are particularly important cies are increasing their service or
to the man who has a big bank account premium volume, as related by The
and considerable property. He is al Maryland Casualty Company, in The
ways a target for an inflated damage Marylander:
award.
1. Looking for a way to increase
4.
In those states where permissible, automobile B.I. limits? When 200 of
write automobile liability coverage on his auto policyholders overlooked his
the “comprehensive” (CP) form . . . recommendation that they increase
or in areas where the CP policy is not their limits, Neal Morgan of Heflin,
available, furnish comprehensive per Alabama, mailed an explanatory letter
sonal coverage on a separate policy.
and an endorsement increasing their
No agent would dream of suggesting limits to $10/25,000. In only two cases
a $2,500/5,000 automobile liability pol did he receive objections, and many of
icy to a client today, even if it were his clients thanked him personally for
available. Yet, in effect, that’s exactly taking care of their interests.
what you do every time you renew or
2. Thanking your clients for their
white a new auto policy with $5/10 business brings big returns. Whenever
limits. It gives just exactly half the he sells a policy, M. R. Rankin of De
protection the same policy did five catur, Alabama, sends each policyhold
years ago!
er a blotter with the message: “ Thank

. . . the TYPE THAT BANKERS RECOGNIZE!

Bankers who are leaders in hundreds o f pros
perous communities throughout the entire western
h alf o f the nation, voice their approval o f N ational
Reserve L ife ’s result producin g “ B anker’s Plan.”
These men recognize and appreciate the strength and
stability o f our com pany.
W rite today . . . fo r complete details on how our
“ B anker’s Plan ” can produce profits fo r you. Be
affiliated with N ational Reserve L ife . . . the com
pany th at’s m arch ing forw a rd with the greatest
expansion program in our history!

#
M

A A \
1

a t io n a l

e s e r v e

TOPEKA

•

SIOUX FALLS

JpesuCUnq. m »ne (ff the Cf.'ieateii new wealth pAoducutcj. a/ieai m the
Pnited Statei
iltheie the ipaüt of the pumeen. itili pAevculi

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Federal Reserve Bank of St. Louis

LARGER
INCOME
FOR ALL
BANKERS
Yes, there is EXTRA MONEY
for you as a banker if you will
look into our plans especially
designed to help your custom
ers.
Hardly a day will go by that
you will not have the oppor
tunity to provide extra service
and counsel to the people of
your community resulting in
LARGER INCOME for you.
Lots of bankers are provid
ing this service to their custom
ers right now. Why can’t you?
Learn the facts about how
easy it is to earn a LARGER
INCOME by writing to Charles
Hoffman, Director of Agencies.
This is worth doing TODAY.

FARMERS L I F E
INSURANCE COMPANY
1922 Ingersoll, Des Moines, la.

L I F E IN S U R A N C E C O M PA N Y

you. We believe it is good business
for you to place all your insurance in
the hands of one agent, and naturally
we hope that agent will be us. Thank
you for your business.”
3. Have you ever had trouble un
derstanding a client as he tries to ex
plain an automobile accident? George
F. Bacon and Harry Hasler of the
Bacon-Hasler Company of El Dorado,
Kansas, solved the problem by paint
ing the top of their counter to resem
ble street and highway intersections
and then purchasing several toy auto
mobiles. Now their clients can show as
well as tell them how any auto acci
dent occurred.

T h r e e id e a s
To fto o st A g e n c y

Stretch the auto premium dollar with
these four steps.

1»
Recommended by Best's and Dunn's
Insurance Reports

Nort hwest ern Banker, April, 1952

our

payroll,

but he works fo r y o u ...

-A

our man at the

IRVIN«

-f

knows your needs, sees from your point of view.
H ere’s you r man . . . and the district he serves:
W
NORTHEAST:

F. D

il l ia m

C. A

lbert

oyle,

Vice P resident

ollenhagen,

A sst. Vice President
D

a v id

K. D

arcy,

J r .,

A sst. Secretary

At his command are world-wide resources and serv
ices to build additional income and good will for

you. Consider the Irving representatives who cover
your territory as members of your own staff, always
ready to assist— whether in the smallest details or
in projects of major importance.

Vice P resident
D o u g l a s E . M c N a m a r a , Vice President
J o h n J . M c S o r l e y , A sst. Vice President
J o h n W . C r e i g h t o n , A sst. Secretary
C h a r l e s W . H a g g e r t y , Representative
S id n e y W . C o e ,

CENTRAL
STATES:

WEST:

F e ic k ,

il l ia m

II. M

il l e r

J o se p h S. M
SOUTHEAST:

SOUTHWEST:

eorge

ic h o l a s

a u r ic e

o ss,

W. D
U

C. T

Vice P resident
A sst. Vice President
Representative

J r .,

ie t z ,

s t in ,

Vice P resident
A sst. Vice P resident

hom pson,

F r e d e r ic k W . B a k e r ,

Nort hwest ern Banker, April, 7952

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Federal Reserve Bank of St. Louis

Vice President
Vice P resident

L aw der,

I IEV I M . T R U S T
COMPANY
ONE W ALL S T R E E T

•

NEW YO R K

1 5 . N, Y .

Capital F unds over $120,000,000
T o ta l R esources over $1,300,000,000
W illiam N. E nstrom, Chairman o f the Board
R ichard H. W est , President

-i

Domestic Banking Division
N olan H arrigan , Senior Vice President in charge
M EM B ER FEDERAL DEPOSIT INSURANCE CORPORATION

Redecorated

M in n e s o ta

NEWS
S. J. KRyZSKO
President
Winona

New Management
The State Bank of Buffalo Lake,
Minnesota, is now under new manage
ment. Officers are H. L. Funk, presi
dent; Helen Funk, vice president; H. C.
Slagerman, cashier; Floyd Schraan and
Ruth Walter, assistant cashiers; Bea
Kingsburg, teller, and Norine Blaesing, bookkeeper.
The new president is well known as
an auctioneer; Mr. Slagerman of Ste
phen, Minnesota has been in banking
for over 20 years and will move to
Buffalo Lake at a later date. Mr. Schra
an is a Buffalo insurance man.
After being associated with the State
Bank for over 50 years, H. G. Eiselein
and F. N. Prelvitz are retiring, having
sold their stock to Funk and Slager
man. Some changes in fixtures and
lobby arrangements will be made from
time to time.
Both Mr. Eiselein and Mr. Prelvitz
are now on extended vacations. Mr.
Eiselein is also president of the Currie,
Minnesota, State Bank, and will con
tinue to maintain his interest in that
institution.

Named Director

Adolph Lundin, prominent Mankato,
Minnesota, contractor, was elected to
the board of directors at the National
Bank of Commerce at a board meeting,
according to an announcement by F. A.
Buscher, president.
Mr. Buscher said in his formal an
nouncement that Lundin’s election is
a “continuation of the bank’s policy of
enlarging our board of directors by the
addition of local representative busi
ness and professional men.”
Other Bank of Commerce directors
are T. M. Coughlan, Thomas McGov
ern, Frank A. Landkamer, Harold W.
Schmidt, Leas Schwickert, Russell A.
Christianson, Neal J. Ryan and Mr.
Buscher.
Mr. Buscher also announced that the
directors voted to increase the capital
account by $100,000, thus giving the
bank a total capital structure in excess
of $500,000.

60th Birthday
The 60th anniversary of the founding
of the State Bank of Cokato, Minne
sota, was observed last month.

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Federal Reserve Bank of St. Louis

FLOYD W. LARSON
Secretary
Minneapolis

The bank first opened its doors for
business on March 2, 1892, fourteen
years after Cokato was incorporated as
a village.
In observance of the anniversary,
coffee was served at the bank. The
public was invited to inspect the newly
completed bookkeeping department.
The observance also marked the 60th
anniversary of the insurance depart
ment of the bank. Among letters of
congratulation received was a message
from John Diamond, president of the
Insurance Company of North America,
in Philadelphia, pointing out that 60
years have passed since the Phila
delphia company authorized represent
atives of the Cokato bank to act as its
representatives.

Alber J. Kehrer
Alber J. Kehrer, 72, Norwood, Minne
sota banker 40 years and a member of
the school board for 30 years, died re
cently in the municipal hospital at
Glencoe.
He was president of the Citizens
State Bank at Norwood.
Surviving are his wife, Margaret;
three sons, Fabian and Donald, Nor
wood, and Ronald, Manhattan Beach,
California, and a daughter, Mrs. Wilmer Gillespie, Minneapolis.

Rates Increased
Higher interest rates will be paid to
depositors henceforth at the First Na
tional Bank and the First State Bank,
in Le Center, Minnesota.
Two per cent interest will be paid on
time certificates of deposit running 12
months.
One and one-half per cent will be
paid on savings accounts.

Vacation Tour
Fred W. Potter, executive vice presi
dent of the First National Bank, Vir
ginia, Minnesota, and Ralph Lambert,
assistant cashier, have been on a
month-long trip which took them as
far south as Key West, Floria. They
visited in Iowa City, Iowa, enroute to
New Orleans where they spent some
time before continuing around the gulf
to St. Petersburg and Miami and then
to Key West. Their trip home was
through the Great Smokey Mountains.

The Farmers and Merchants State
Bank of New York Mills, Minnesota,
has recently undergone a redecorating
program. The newly finished work
gives the bank a very neat and impres
sive appearance. The walls have been
done in a deep green and the lobby in
a deep red. The effect, contrasted by
the newly installed, well-lighted win
dows, is very pleasing.

On Bank Staff
Chuck Randall, 22, graduate of St.
John’s University, has become a mem
ber of the staff of the First State Bank
in Albany, Minnesota. The young
banker is a former resident of Little
Falls, and moved to Albany recently.
He was married in December, 1951,
just before receiving his degree in Eco
nomics from St. John’s.

Pay More Interest
Agreement to increase the interest
rates on time certificates of deposit
and savings deposits was reached by
the LeSueur, Minnesota, County Bank
ers association at a meeting held at
the Citizens State Bank at Montgom
ery.
Interest rate on 12-month time cer
tificates was raised to two per cent. On
6-month time certificates the rate was
increased to IV2 per cent. The new
rate on savings deposits will be IV2 per
cent. All have previously been one per
cent.

Contest Winners
The Citizens State Bank of Clara
City, Minnesota, has announced the
winners of the essay contest which it
sponsored..
Winning first prize of $15 for writing
the best paper on the theme, “ I Like
Clara City Because” was Dale Hayunga. Second prize winner was Ruth
Schjeldahl, winning $10; and third was
Shirley Goldenstein, winning $5.
There were ten prize winners of $2
each.

To Remodel
The first steps have been taken in
the remodeling project for the North
western National Bank in Litchfield,
Minnesota. Because of the extent of
the remodeling program the concern
will move to a new location for 90
days while workmen rush the project
along. The bank will do business in
the building occupied by the Litchfield
Ice Cream company next door to the
Super Valu grocery.

MORE MINNESOTA NEWS
ON PAGE 48
Nort hwest ern Banker, April, 1952

iULJAN B. BAIRD, president of the
J First National Bank of St. Paul, is
one of four candidates for election as
alumni fellow of the Yale Corporation,
according to a recent announcement
by Yale University.
Yale alumni will vote by mail ballot.
Results will be announced at the
alumni reunion in June.
Mr. Baird also is a member of the
board of directors of the First Bank
Stock Corporation and of the First
Trust Company. He also is active in
civic work. A 1915 graduate of Yale,
he was president of the Northwest
Yale Alumni Association in 1946.
* * *
Richard H. Stebbins, advertising
manager of the Northwestern National
Bank of Minneapolis, participated in a
recent regional conference of the Fi
nancial Public Relations Association
at Des Moines. He was chairman of
the departmental session on advertis
ing and publicity.
* * *
Peter D. Esau, assistant secretary of
the Farmers & Mechanics Savings
Bank of Minneapolis, was a member of
the panel at a National School Savings
Forum in New York recently, in con
nection with the 50th anniversary sav
ings and mortgage conference of the
American Bankers Association.
* * *
Albert J. Kehrer, president of the
Citizens State Bank of Norwood, near
Minneapolis, died of a heart attack re
cently at the age of 72. He had been
associated with the bank for 40 years.

Walter V. Dorle, president of the
Northwestern State Bank of St. Paul
and a member of the advisory council
of the Northwest Bancorporation, was
elected a member of the board of direc
tors of the North Central Life Insur
ance Company of St. Paul.
* * *
E. O. Jenkins, president of the First
Bank Stock Corporation, and Mar
guerite A. Ryan of Minneapolis were
married recently. They spent their
honeymoon in Chicago, Biloxi, Missis
sippi, and at the Cloisters, Sea Island,
Georgia, and are living at 2837 E. Lake
of the Isles Boulevard in Minneapolis.
=fs * *
Winston Molander of the Northwest
ern National Bank of Minneapolis was
one of six persons who took part in
a panel discussion at a public forum
recently at Macalester College in St.
Paul.
* * *
Several St. Paul area bankers are
assisting J. G. Goblisch, vice president
of the First Grand Avenue State Bank
of St. Paul, with arrangements for the
regional conference of the National
Association of Bank Auditors and
Comptrollers in St. Paul, May 22nd
through 24th. Mr. Goblisch is general
chairman.
Assisting are AY. H. Kortum, vice
president of the Western State Bank of
St. Paul, finance chairman; F. AAT. Mau
ke, comptroller of the First National
Bank of St. Paul, program chairman; E.
J. Haugberg, assistant auditor of the
First National Bank, registration

chairman; F. E. Paul, auditor of the
First Trust Company, hotel reserva
tions chairman, and R. A. Johnson, as
sistant cashier of the Drovers National
Bank of South St. Paul, women’s chair
man.
* * *

-c

Charles C. Rieger, vice president of
the Marquette National Bank of Min
neapolis and national treasurer of the
Independent Bankers Association, died
recently at the age of 69.
A vice president of the bank for five
years, Mr. Rieger was head of Mar-

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Northwestern Banker, April, 1952

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Federal Reserve Bank of St. Louis

Minneapolis 4, Minnesota

quette’s division of banks and bankers.
He formerly was president of the in
vestment house of Rieger, Jensen &
Company of Minneapolis and also was
previously a vice president of J. M.
Dain & Company. He was a member
of the Minnesota Bankers Association.
Funeral services were held in Min
neapolis.
* * *
C. E. Johnson, president of the Em
pire National Bank of St. Paul, has

Minnesota News
been elected to a three-year term as
a member of the board of directors of
the St. Paul Association of Commerce,
starting April 15th.
* * *
Lyman E. Wakefield, Jr., assistant
vice president of the First National
Bank of Minneapolis, has been elected
a vice president of the Minneapolis
Chamber of Commerce. Henry T. Rut
ledge, vice president of the Northwest
ern National Bank of Minneapolis, is
the retiring president of the Chamber.
* * *
John P. Knutson, assistant vice pres
ident and manager of the credit de
part, was elected vice president of the
Midland National Bank of Minneapolis
at a recent meeting of the bank’s board
of directors.
Mr. Knutson entered the employ of
the bank in 1930 and took a leave of
absence in 1942 to serve in World War
II. He returned to the bank in 1946
and was elected assistant cashier in
November of that year. He was placed
in charge of the credit department in
January, 1950, and was elected an as
sistant vice president.
He has a graduate certificate from
the American Institute of Banking.
* * *
Three Minneapolis bankers have
been elected to the board of directors
of Downtown Auto Parks, Inc., opera
tors of two open-deck parking garages
in downtown Minneapolis.
They are P. R. Harrison, real estate
officer of the First National Bank of
Minneapolis; Goodrich Lowry, execu
tive vice president of the Northwest
ern National Bank of Minneapolis, and
Lyman E. Wakefield, Jr., assistant vice
president of the First National.
* * *
Officials of Twin Cities banks agree
that the voluntary credit restraint pro
gram, sponsored by the Federal Re
serve Board, achieved its stabilization
goals during its first year.
The national program is headed by
Oliver Powell, former Minneapolis
banker and now one of the Federal
Reserve board governors. Julian B.
Baird, president of the First National

Bank of St. Paul, is chairman of the
voluntary credit restraint committee
in the Ninth Federal Reserve District.
* =t= *
Gordon Murray, president of the
First National Bank of Minneapolis,
hailed “the first year’s experience as a
triumph for voluntary restraint.”
J. F. Ringland, president of the
Northwestern National Bank of Min
neapolis, said the program “has been
an effective instrument in combating
inflation.”
Arnulf Ueland, president of the Mid
land National Bank of Minneapolis,
said voluntary controls have been ben
eficial to would-be borrowers, even
when loan requests are discouraged.
Russell L. Stotesbery, president of
the Marquette National Bank of Min
neapolis, said the program “has done
the job of helping to control inflation;

the response has been 100 per cent.”
Other St. Paul bankers on the com
mittee included Rollin O. Bishop, pres
ident of the American National Bank
of St. Paul, and Edward C. Brown, sen
ior vice president of the First Na
tional.
* * *
The Federal Reserve Bank of Min
neapolis announces the retirement of
Walter H. Turner, assistant cashier,
because of ill health.
Mr. Turner has been associated with
the Reserve Bank since 1916, except
for a period of army service during
World War I, and has been an officer
of the bank since 1942. He intends to
make his future home in Van Nuys,
California.
* * *
Appointment of Donald R. Karowski
and Harry W. Wellner as assistant

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M inneapolis, M inn.
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FEDERAL

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DEPOSIT

IN SU R A N C E

CORP.

5 5 0 StoncAe* /tenate &x*«zd<l • Resources Exceed $2 Billion
Nort hwest ern Banker, April, 7952

Minnesota News

cashiers of the Northwestern State
Bank of St. Paul was announced re
cently.
Mr. Karowski, who joined the bank
staff in 1941, has been a note and draft
teller for the past three years. Mr.
Wellner, with the bank since 1945, has
been manager of the bank’s install
ment loan department since 1951.
* * *
Ralph W. Cron ley has been named
editor of the Marquetter, employe
house organ of the Marquette National
Bank of Minneapolis, according to a
recent announcement by Russell L.
Stotesbery, president.
He succeeds David E. Alar, assistant
cashier, who has left the bank to move

to San Francisco. Mr. Alar had been
with the bank since 1946. Mr. Crouley
joined Marquette’s installment loan
department in 1950 and was promoted
to assistant cashier in the commercial
department last August.
* * *
Barbara Pendleton, assistant cashier
of a Kansas City, Missouri, bank and
national women’s chairman of the
American Institute of Banking, was
speaker at the annual spring style
show and dinner sponsored by the
women’s division of the St. Paul A.I.B.
chapter recently.
Miss Pendleton was guest at a re
ception at the home of Marguerite
Brawley, second vice president of the

St. Paul chapter, who was chairman of
arrangements.
* * *
Otto H. Preus, assistant vice presi
dent of the Marquette National Bank
of Minneapolis, has been elected vice
president.
Mr. Preus joined Marquette’s departmen of banks and bankers in 1948

STA TEM EN T OF CONDITION

NORTHWEST SECURITY
NATIONAL BANK
of Si oux Fall s, South Dakota

South Dakota’s Leading Bank

A-

December 31, 1951

O T T O H. PREUS
Elected vice president

R E S O U R C E S
Cash on Hand, in Federal Reserve Bank, and
Due from Banks and Bankers...............................................$13,219,830.75
U. S. Government Obligations................................................... 15,895,064.48
State and Municipal Bonds....................................................... 1,374,016.29
Other Bonds and Securities....................................................... 1,022,233.93
$31,511,145.45
Stock in Federal Reserve Bank in Minneapolis.................................................
45,000.00
Overdrafts .....................................................................................................................
8,138.34
Loans and Discounts.................................................................................................. 16,327,955.35
Commodity Credit Corp., Grain Loans..................................................................
50,337,44
Banking Houses, Furniture and Fixtures.............................................................
618,357.42
Includes Banking Houses at Sioux Falls, Brookings, Chamberlain, Dell
Rapids, Gregory, Huron and Madison, all clear of encumbrance.
Interest Earned but Not Collected..........................................................................
176,739.12
Customers' Liability on Letters of Credit.............................................................
42,150.00
TOTAL ...........................................................................................................$48,779,823.12
L I AB I L I T I E S
Capital Stock— Common ............................................................ $ 500,000.00
Surplus .............................................................................................. 1,000,000.00
Undivided Profits and General Reserves...............................
634,717.93
Reserve for Interest, Taxes, and Other Expenses..............................................
Interest Collected but Not Earned..........................................................................
Deposits:
Time .............................................................................................$ 7,848.167.47
Demand ....................................................................................... 37.770,443.44
U. S. War Loan..........................................................................
473,810.02
Letters of Credit............................................................................................................

$ 2,134,717.93
362,019.75
148,514.51

$46,092,420.93
42,150.00

TOTAL ...........................................................................................................$48,779,823.12
BRANCHES AT

BROOKINGS, CHAMBERLAIN, DELL RAPIDS,
GREGORY, HURON, MADISON
Affiliated with Northwest Bancorporation
Member Federal Deposit Insurance Corporation

and in his new senior capacity will
continue active in this department.
Prior to joining the bank he was
cashier of the State Bank of Cokato,
Minnesota, for nine years. He former
ly was associated with the Bankers
National Bank of Minneapolis and the
Payday National Bank. From 1924 to
1933 he served with the Minnesota
state banking department.
* * *
Gordon Murray, president of the
First National Bank of Minneapolis,
has been appointed a member of the
Ninth District commercial banking
voluntary credit restraint committee.
He previously had served as an alter
nate member.
Rufus W. Hanson, vice president of
the First National, has been appointed
alternate member.
* * *
John E. Nelson has been elected a
mortgage loan officer of the Marquette
National Bank of Minneapolis by the
bank’s board of directors, Russell L.
Stotesbery, president, announced re
cently.' Mr. Nelson has been associ
ated with the bank since 1946 as a
home loan consultant.
* * *
Henry Verdelin, former Minneapolis
banker, has been appointed senior vice
president of the San Francisco Bank
in San Francisco. Mr. Verdelin now
is a vice president of the Mutual Life
Insurance Company of New York.
(Turn to page 46, please)

Nort hwest ern Banker, April, 1952

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Federal Reserve Bank of St. Louis

-A

S o u th D a k o ta

NEW S
J. M. PATTON
President
Mitchell

CARL E. BAHMEiER, JR.
Secretary
Huron

South Dakotans Attend Clinic
B LIZZARD conditions limited attend
ance at the third annual Bank Man
agement Clinic in Huron last month
to 95 bankers, but those in attendance
were enthusiastic in endorsing the
clinic as having produced the best pan
el of speakers at any association meet
ing such as this. The clinic was spon
sored by the South Dakota Bankers
Association.
In addition to the formal talks de
livered by bankers and business men
with sectional and national reputa
tions, the bankers had an opportunity
to discuss mutual problems with oth
ers from banks of their own size.
These “size group” discussions were
well attended and brought out an
swers to many questions that have
come up in numerous banks.
George Toft, cashier, Commercial
Trust and Savings Bank, Mitchell, and
chairman of the bank management
committee, presided at the opening
session. He introduced J. M. Patton,
president of the Mitchell National
Bank and president of the South Da
kota Bankers Association, who wel
comed the group.
“Consumer Credit — Banking’s Op
portunity” was the topic discussed by
Elwood Brooks, president of the Cen
tral Bank and Trust Company, Den
ver, the first morning. That afternoon
three Chicago bankers addressed the
crowd. Gaylord A. Freeman, vice pres
ident, First National of Chicago, re
viewed “Capital Investments” ; Joseph
B. Fitzer, assistant cashier, Continen
tal National of Chicago, discussed
“ The Triangle of Management” and C.
A. Hemminger, public relations direc
tor at American National of Chicago,
outlined “ Modern Bank Advertising.”
The following morning bankers
heard John Bishop, vice president, Re
public National of Dallas, talk about
“Automobile Financing.” Charles McCumsey, J. I. Case Company, Racine,

Wisconsin, discussed the relationship
between “Bankers and Farm Machin
ery,” and Robert Eckman, district rep
resentative in Chicago for Westinghouse, gave his views on “ Installment
Financing.”
Internal operations were discussed
by two authorities in auditing proce
dures. A. S. Chavez, comptroller, Live
Stock National of Omaha, told about
“ The Psychology of Bank Embezzle
ment,” and Alvin J. Vogel, vice presi
dent and coordinator of administration
at the Central National in Chicago, dis
cussed “Bank Operations.”
Following these two talks were the
“ size group” discussions, broken up
into two groups of banks up to $3,000,000 in resources, and those over $3,000,000 in resources.
Two additional drawing cards at
the clinic were the displays of bank
equipment by manufacturers and the
A.B.A.’s “ Forum in Print,” which is
a display of outstanding bank adver
tising.
Bank equipment manufacturers at
the clinic were: Addressograph Sales
Agency, Omaha; Business Machines &
Equipment Company, Minneapolis; LeFebure Corporation, Cedar Rapids,
Iowa; Monroe Calculating Company,,
Orange, New Jersey; National Cash
Register, Dayton, Ohio, and Recordak
Corporation, New York.—The End.

Moves to Centerville

George B. Smith, formerly cashier of
the Farmers State Bank in Elgin,
North Dakota, has moved to Center
ville, South Dakota, where he is now
cashier of the Bank of Centerville.

Meet at Clear Lake
Members of the Deuel-Hamlin Coun
ty Bankers Association met at the
Deuel County National Bank in Clear
Lake, South Dakota, last month for
their regular quarterly meeting. Ar

thur J. Peterson, assistant cashier of
the Deuel County National, is presi
dent of the group and presided over
the meeting.
Those in attendance were: Laurence
Gratz, assistant cashier, Farmers State,
Estelline; Frank A. Olson, president,
Bank of Toronto; Harold Heidemann,
Deuel County National, Clear Lake;
C. G. Martinson, cashier, Bank of
Toronto; A. C. Berger, president, Deuel
County National, Clear Lake; Lynn
D. Kalvig, assistant cashier, Commu
nity State, Hayti; Daryl Alseike, Farm
ers State, Estelline, and secretarytreasurer of the association; Don Gullickson, Community State, Hayti, and
Claude Force, Clear Lake.

Farm Loan Meeting
H.
E. VanHorn, president of the
Federal Land Bank of Omaha, was
the principal speaker at the annual
stockholders’ meeting of the Charles
Mix-Douglas counties National Farm
Loan Association recently in Pickstown, South Dakota.

Addresses Crop Group
Carl E. Bahmeier, Jr., executive sec
retary, South Dakota Bankers Asso
ciation, was the speaker at a recent
meeting of the Minnehaha County
Crop Improvement Association in Garretson, South Dakota. Mr. Bahmeier
stressed the importance of land con
servation in view of the necessity of
feeding the nation’s increasing popu
lation.

New Assistant Cashier
Joel Babb has been promoted from
bookkeeper to assistant cashier at the
Security State Bank in Wakonda,
South Dakota.

S io u x F a lls N e w s
r RANK .T. CINKLE, vice president

1 of the National Bank of South Da
kota, was named finance chairman for
the Cosmopolitan Club’s Spring Carni
val and Food Show, scheduled for
April 22nd to 26th.
* * *
Henry S. Lehr, auditor of the Na
tional Bank of South Dakota, and
Gordon Curren of the Northwest Se
curity National Bank, attended a short
course in central banking at the Fed
eral Reserve Bank in Minneapolis.
* * *
James B. Lambertson, a former

TH E N ATIO N AL BAN K OF SOUTH DAKOTA
Huron
M e m b e r F e d er a l D e p o sit In su ra n ce C orpora tion

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Federal Reserve Bank of St. Louis

Sioux Falls

Vermillion

A ffilia ted w ith F I R S T B A N K S T O C K C O R P O R A T I O N

Nort hwest ern Banker, April, 1952

South Dakota News

Sioux Falls banker, died at his home
in Los Angeles at the age of 71. Fun
eral services were held in Los Angeles
and burial was made at DeWitt, Iowa.
A native of Ames, Iowa, Mr. Lambertson entered the banking business
in Iowa as a young man. He moved
to Sioux Falls shortly after the turn
of the century and became cashier at
the old Sioux Falls Savings Bank in
1911. Later he was selected to be
western representative of the National
Bank of Commerce of New York. In
1919 he became a cashier at the Secu
rity-National Bank & Trust Company
here.
Mr. Lambertson went back to Iowa
in the late 1920’s before returning to

South Dakota in 1929 to become as
sistant superintendent of state banks.
Four years later he was chosen as
examiner in charge of the state bank
ing department’s liquidating office in
Sioux Falls. At one time he was pres
ident of the South Dakota Bankers
Association.
* * *
Mr. and Mrs. T. N. Hayter returned
from a month’s vacation in Browns
ville and other points in Texas. Mr.
Hayter is vice president of the First
National Bank & Trust Company.
* * *
Local bank clearings increased from
$25,779,623 in February, 1951, to $26,678,483 in February, 1952.—The End.

(D illC b m M a i
MEANS

BE T T E R

School In Huron
The South Dakota Bankers Associa
tion’s Agricultural School will be held
in Huron, April 9th and 10th. In
cluded among the speakers will be Dr.
Earl Butz of Purdue University, as
the speaker at the barbecue supper.
Dr. John W. Headley, newly appointed
president of South Dakota State Col
lege, will be the luncheon speaker on
Wednesday.

Becomes Auditor
S.
Sloan Colt, president of Bankers
Trust Company of New York, has an
nounced the promotion of Morris Au
gust Engelman to the position of audi
tor.
Mr. Engelman came with Bankers
Trust Company in 1927 and was made
an assistant auditor in 1946.
He is a native of New Jersey. He
was graduated from the Wharton pub
lic schools and attended the American
Institute of Banking.

TWIN CITY NEWS
(Continued from page 44)

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ccl

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Member Federal Deposit Insurance Corporation

Northwestern Banker, April, J952

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He joined the First National Bank
of Minneapolis in 1917 and became an
officer in 1923. While in Minneapolis
he was elected national president of
the American Institute of Banking for
1936 and 1937. He joined Mutual Life
in 1940.
=t= * *
Kenneth A. Wales has been named
executive secretary of the Minneapolis
chapter of the American Institute of
Banking, according to a recent an
nouncement by Ralph Emerson, chap
ter president.
He succeeds Lloyd F. Wilkes, who
resigned to become tax research coun
sel for the Minnesota Taxpayers Asso
ciation.
Mr. Wales, who has been school sav
ings director for the Farmers & Me
chanics Savings Bank in Minneapolis,
assumed his new duties April 1st. He
has been active in A.I.B. affairs and
holds pre-standard and standard edu
cational certificates from the organi
zation.
* * *
Henry S. Klingman, president of the
Farmers & Mechanics Savings Bank
of Minneapolis, participated in a panel
discussion during a forum on “Thrift
—Basis of the American Economy,” at
Gustavus Adolphus College, St. Peter,
Minnesota. The meeting was spon
sored by the college in cooperation
with the National Thrift Committee.
* *
Alice Foss, director of advertising
and public relations of the Farmers &
Mechanics Savings Bank of Minneap
olis, was elected president of the Twin
Cities Financial Public Relations Asso
ciation at the group’s annual meeting.

47
similar position in a bank at Moor
head, Minnesota.

X o r tli D a k o ta

NEW S
A. R. WEINHANDL
President
Minot

C. C. WATTAM
Secretary
FarS °

"O il and Hanking99Panel to be a
Feature at 2V. O. Convention
Dates Are May 9th and 10th at Bismarck
for registration at
the North Dakota Bankers Asso
ciation’s annual convention May 9th
and 10th at the Hotel Patterson in Bis
marck have been mailed by C. C. Wattam, association secretary.
The advance announcement on the
convention revealed that a top feature
at the meeting will be a panel discus
sion on “ Oil and Banking.” Other fea
tures will be a visit to Garrison Dam
the morning of May 9th, a golf tourna
ment at Apple Creek Country Club
that afternoon, and a dinner for the
ladies at the Prince Hotel that eve
ning, while a stag smoker is being
held for the men at the Country Club.
The ladies will have a luncheon at the
Country Club Saturday, May 10th,
while convention sessions and lunch
eon continue at Hotel Patterson. The
two-day convention w i l l conclude
with a social hour, banquet and a
dance, the latter to be at American
Legion Hall.
Chairman of the hotel reservations
committee is George Thompson, assist
ant manager of the credit department
at the Bank of North Dakota in Bis
marck.

p p l ic a t io n s

zens State Bank, succeeding W. S.
Raymond, who is now president. Mr.
Gergen had been with the Bank of
Webster for 19 years.

Seek Scranton Charter
Formation of a state bank at Scran
ton, North Dakota, in Bowman county,
is proposed in an application to the
state banking board.
State Examiner John A. Graham
said the board will conduct a hearing
in Bismarck April 9th on the proposal
for the Farmers Bank of Scranton with
a proposed total capitalization of $40,000.
Organizers include T. A. Düse, E. I.
Butler, Pat Whalen, W. D. Cooledge,
all of Scranton, and Henry Bublitz of
Buffalo Springs, North Dakota.
Mr. Graham said Scranton has not
had a bank since 1939. The 1950 fed
eral census credits the town with a
population of 360. Scranton is located
in the extreme southwestern county
of the state and is 14 miles east of
Bowman, the county seat.

Rejoins Jamestown Bank
Clifford R. Erickson has rejoined the
staff of the National Bank of James
town in Jamestown, North Dakota,
where he was employed from 1941 to
1947. He has been with a commercial
business since 1947.

Leaves Minnewaukan
Pernell Canton has resigned as cash
ier of the Farmers State Bank, Minne
waukan, North Dakota, to accept a

Adam Lefor
Adam Lefor, 71, former North Da
kota state official, died at his home in
Salem, Oregon, last month.
Mr. Lefor, a former state bank ex
aminer, was manager of the state fire
and tornado fund and was active in
western North Dakota political and
banking circles.
Mr. Lefor was credited with found
ing the town of Lefor in Stark county.

From Chicago to Korea

Bismarck-Mandan bankers have com
mittees working on other phases of
the convention and they announce
that the program is practically com
plete. This will appear in the next is
sue of the N o r t w e s t e r n B a n k e r . T w o
of the speakers announced so far are
W. Harold Brenton, vice president of
the American Bankers Association and
president, State Bank of Des Moines,
Iowa, and William A. Irwin, economist
with the American Bankers Associa
tion, New York City.

Moves to Ray
R. A. Gergen, assistant cashier, Bank
of Webster, Webster, North Dakota,
has moved to Ray, North Dakota,
where he is now cashier of the Citi

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Federal Reserve Bank of St. Louis

Homer J. Livingston, president of the First National Bank of Chicago, was the
first o f 738 officers and employees of the bank who donated blood when a Red
Cross bloodmobile visited the bank last month. The three-day program was spon
sored by the bank’ s American Legion Post No. 985 in cooperation with the Ameri
can Red Cross.
Blood donated through the Post was flown by the Defense Department as whole
blood to the Korean Area for immediate transfusions to combat men who have
been wounded or disabled on the battle line.
Nort hwest ern Banker, April, 7952

North Dakota News

He built most of the buildings in
the town, including a bank. He also
established banks in Dickinson, Belfield and Gladstone. He also had sev
eral farms.
He moved to Dickinson in 1927
where he operated the Farmers State
Bank. He was state bank examiner
from 1933 to 1939 when the Nonparti
san League controlled the state ad
ministration.
Mr. Lefor was nominated for an
other four-year term as bank examiner
in 1938 by Governor William Langer,
now U. S. Senator. The 1939 state sen
ate refused to confirm the appoint
ment.
Mr. Lefor also served for a time as
manager of the state fire and tornado
fund of the state insurance depart
ment under the late Oscar Erickson.
He had been living in retirement for
the past few years in Salem. He
leaves his widow and two daughters,
Mrs. Mike Raschko and Mrs. Anthony
Becker, all of Salem and formerly of
Dickinson.

30 Years of Service
Haakon M. Weydahl, president,
Bank of Killdeer in Killdeer, North
Dakota, completed 30 years of service
to that community last month. He
moved to Killdeer in March, 1922, as

vice president of the bank. At the
last meeting of the board of directors,
his son, Earl, was advanced from as
sistant cashier to vice president.
Mr. Weydahl has been very active
in civic work in addition to his duties
at the bank.

Generally speaking, we believe a bank
should sell personalized checks rather
than provide them at no cost, but we
are told by an increasingly large number
of bankers that the time saved in han
dling checks which are imprinted more
than offsets the extra expense. W e don’t
know enough about bank operating costs
to debate this point, and indeed we
have no desire to do so because we like
the business.

Northwestern Banker, April, 1952

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

County Association

The Security State Bank, Wishels,
North Dakota, completed installation
of safety deposit boxes in its vault.
This is in conformity with its policy
to further extend its services to the
community. The safety deposit boxes
may be rented by individuals on an an
nual basis. They meet an urgent need
for protective safe keeping of valu
ables from loss by fire, theft or burg
lary.

Martin County bankers have reor
ganized the Martin County (Minne
sota) Bankers Association, which has
been dormant since the early part of
World War II, when gasoline rationing
and other restrictions put a crimp in
travel.
C. F. Holden of the Martin County
National Bank of Fairmont was re
elected president of the association.
E. A. Fenrich of the People’s State
Bank of Truman was elected vice pres
ident, and Harold W. Folk of the Wel
come State Bank was elected secretarytreasurer.

New Machines

Anniversary

Install Boxes

Union National Bank of Minot, North
Dakota, has put into operation auto
matic bank tellers’ machines.
This added service to customers will:
1. Eliminate passbooks, and give cus
tomers a registered receipt for each
deposit.
2. Speed up service.
3. Minimize errors'.
4. Make records even more confi
dential, each transaction being regis
tered by number rather than by name.

SPIRALING
Interest in the subject o f providing
imprinted checks to all customers ap
pears to be quickening among bankers
at this time. Another large metropolitan
bank is just starting to furnish this
service to some forty thousand accounts
who up to now have been using con
ventional stock checks, and we observe
that we are more frequently discussing
this topic.

MORE MINNESOTA NEWS

Whether imprinted checks are sold or
given away, there is no question but
what they are better than checks which
have to be sorted and filed by signature
only, and since the operating costs in
banks are constantly mounting, just as
they are in industry, any reasonable
investment that will hold them in line
is perhaps money well spent.
In any event, the trend appears to be
definitely towards m ore im printed
checks, which o f course involves the
need for a dependable source o f supply
for the printing. W e can handle almost
any kind or size o f imprint job, whether
it be one order for forty checks or one
hundred thousand orders for two hun
dred checks each. During the course o f a
year we produce well over two million
imprint orders and there is always
room for another million.

Last month Ray Meyer, vice presi
dent, State Bank of Faribault, Minnsota, celebrated the 25th anniversary
of his association with the institution.
He started with the bank in 1927 as an
assistant cashier.

Resigns
Sam Shulman, who has served as
assistant cashier of the Union State
Bank, Brown’s Valley, Minnesota, since
November, 1950, resigned that position
and has accepted a position as cashier
of the Farmer’s State Bank at Elgin,
North Dakota. Mr. Shulson took over
his new duties as cashier at Elgin last
month.
Mrs. Shulson will remain in the Val
ley until housing is secured for them in
their new location.

Installs Recordak
O. H. Schwirtz, president of the
Arlington, Minnesota, State Bank, an
nounces the installation of a Recordak
machine for the convenience and serv
ice of the depositors.

Director Change
The board of directors of The Na
tional City Bank of New York an
nounced the retirement of Colonel Ed
ward A. Deeds as a director of the
bank and the election of Stanley C.
Allyn as a director to succeed him.
Colonel Deeds, who is chairman of the
National Cash Register Company, has
served the bank as a director for more
than 23 years. The board adopted a
resolution accepting his resignation
with deep regret.
Mr. Allyn is president and director
of the National Cash Register Com
pany. A native of Wisconsin, he was
graduated from the the University of
Wisconsin in 1913 and was awarded
an honorary LL.D. by the University
in 1946. He joined the National Cash

Montana News
Register Company in December, 1913,
became comptroller in 1917, treasurer
in 1926, executive vice president and
general manager in 1931, and president
in April, 1940.

Here's some
'FIRST" Friends
You should Know

sh ow ers

' ^
v
\

bring May

flowers and the occasion of many

Declare Dividend
The board of directors of Guaranty
Trust Company of New York have
declared a quarterly dividend of $3
per share on the capital stock of the
company for the quarter ending March
31, 1952, payable on April 15, 1952, to
stockholders of record at the close of
business March 14, 1952.

#
A p r il

annual meetings...
To each and every one of which we send
ELMO
THOMPSON

the warmest. greetings....

lift

You know, of course, that the FIRST
of TULSA is nationally known
JOE BYRD

As one of the best correspondents you
could possibly have on an oil loan 1
mi

¡vr*

But we also want you to remember

With Whitefish Bank
John R. Cloud of Wolf Point, Mon
tana, has joined the staff of the First
National Bank of Whitefish. He will
be a salesman for the Whitefish Insur
ance Agency, recently established by
T. J. Sillers, bank president.
Mr. Cloud graduated in March, 1951,
from Montana State University, where
he majored in busines administration.
He was formerly employed by the
Commercial Credit Corporation in Mis
soula.

This month, next, and even ’way
HARRY LANE

past next September
That in Real Estate,
Farming,
DICK WAGNER

Instdll Check Printer
The Conrad National Bank at Kalispell, Montana, is the first bank in
northwest Montana to install a Todd
Company personalized check imprint
er. Conrad National customers have
been availing themselves of these new
checks and the bank makes no charge
for personalizing them.

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

Wholesaling

Retailing,

Construction

and so forth
The chances are you’ll go forth

Miners National Changes
Three new directors were elected
recently by stockholders of the Miners
National Bank in Butte, Montana.
They are O. R. Rubie, president of the
Citizens Bank of Havre; his son, Rich
ard Rubie, also of the Citizens Bank
of Havre, and H. W. Pribnow, who
has moved to Butte as executive vice
president of the Miners National. He
was formerly a Minnesota banker.
Officers elected by the directors are:
A. J. Lochrie, president and trust offi
cer; Mr. Pribnow, executive vice presi
dent and assistant trust officer; T. J.
Fenlon, cashier; H. A. Kenck, assistant
cashier and assistant trust officer; H.
L. Temby, assistant cashier, and A. O.
Taylor, assistant trust officer.

Cattle

And do better if this thought
DEAC RHODES

you've nursed in and around Tulsa,
it's both pleasant and profitable
to think...FIRST!

THE

FI RST

N A T I O N A L BANK
AND TRUST
O

MEMBER

T
FEDERAL

COMPANY
U

D EP O SIT

IN SU R A N C E

A
CORP.

When in Tulsa, You are cordially invited to visit
our new building. See the FIRST mural interpre
tation of the famous Oklahoma Runs.
Nort hwest ern Banker, April, 1952

COMPLETE CORRESPONDENT FACILITIES
•
COMPLETE CORRESPONDENT FACILITIES
•
•
COMPLETE CORRESPONDENT FACILITIES

COMPLETE CORRESPONDENT FACILITIES

•
COMPLETE CORRESPONDENT FACILITIES

COMPLETE CORRESPONDENT FACILITIES

•

COMPLETE CORRESPONDENT FACILITIES

•

COMPLETE CORRESPONDENT FACILITIES

• COMPLETE CORRESPONDENT FACILITIES • COMPLETE CORRESPONDENT FACILITIES • COMPLETE CORRESPONDENT FACILITIES •

# COMPLETE CORRESPONDENT FACILITIES • COMPLETE CORRESPONDENT FACILITIES • COMPLETE CORRESPONDENT FACILITIES •
Northwestern Banker, April, 1952

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

51
Mr. Griswold added that the total of
$425,000 in capital invested, which in
cludes $125,000 in undivided profits,
reflects a healthy growth in the 42year-old bank. It is the only bank
in Gering.

Conservation Meeting

Nebraska Groups t^rof/ram
N ANNOUNCEMENT from Carl
Swanson, secretary of the Nebras
ka Bankers Association, advises that
arrangements for the series of Ne
braska Group Meetings, which start
this month on the 21st in Lincoln, are
practically complete. With the excep
tion of a change in speakers at Nor
folk, the program as it appears below
is standard for the other five meetings.
Dates and cities are shown elsewhere
on this page.
The Question and Answer Panel,
which will be held at five of the meet
ings, will discuss the topics of “Wills
and Estates,” “Joint Ownership of
Property,” “Deposit Agreements and
Signature Cards,” and other subjects
on bank management. Members are
urged to send in to Carl Swanson, or
present themselves at the meetings,
questions on any other subjects they
would like to have discussed.
The blanket program, with the ex
ception of Norfolk, reads as follows:

Program
lOc 00 A. M. Registrations.
12:30 P. M. Luncheon.
Presiding, the group president.
Introductions.
Remarks—Wm. N. Mitten, president,
Nebraska Bankers Association.
Remarks—J. F. McLain, Director of
Banking, State of Nebraska.
“ Soil Testing” (this topic not provided
for at Lincoln)—R. L. Voss, chair
man of the committee on agricul
ture, will speak at Fremont.
Howard Peterson of Grand Island
has been secured for Group Three.
Fred L. O’Hair, executive director
of Nebraska Conservation Founda
tion, Inc., will speak at North Platte,
Sidney and Hastings.
Dan Monen, vice president and chair
man of the trust committee of the
Omaha National Bank, will speak at
Norfolk.
Note: J. Francis McDermott, senior
vice president of the First National
Bank of Omaha, will be the banquet
speaker at Norfolk—Group Three.
“Question and Answer Panel” (pro
grams for Groups One, Two, Four,
Five and Six).
Burham Yates, president, First Na
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

tional Bank of Lincoln, moderator.
Elmer DeKay, vice president of the
Continental National Bank of Lin
coln.
Carl D. Ganz, vice president and
trust officer, National Bank of Com
merce of Lincoln.
Report of Committee on Resolutions.
Report of Committee on Nominations.
Adjournment.

Social Hour
Banquet — Toastmaster and other ar
rangements at the discretion of the
group officers.
“ Skulduggery at the Old Crossroads,”
Art Briese, Hot Springs, Arkansas.
(Mr. Briese will not appear at the
Norfolk meeting.)

Capital Increase
Dwight Griswold, president of the
Gering National Bank, Gering, Ne
braska, announced that the Federal
banking authorities have approved an
increase in capital for the Gering Na
tional to $150,000. Surplus has been
fixed at $150,000.
The increase was authorized at the
recent annual meeting of the board of
directors, bringing the ratio of capital,
surplus and undivided profits to de
posits to one of the highest in the
state.
At the same meeting Dale Sorensen
was named vice president in addition
to his position as cashier.

Over 250 persons attended the sec
ond annual Lincoln County Soil Con
servation District meeting held recent
ly in North Platte.
Toastmaster was Ed Kratzenstein,
who gave recognition to co-sponsors of
the lunch meeting. Co-sponsors were
the First National Bank, McDonald
State Bank, Bank of Brady, Farmers
State Bank of Wallace and the First
Security Bank of Sutherland.
Speakers on the program were Soil
Conservation Service teechnicians and
members of the board of directors.

C. B. Hroch
Charles B. Hroch, 64, cashier of the
Bank of Wilber, Nebraska, since 1922,
died suddenly in his home.
Mr. Hroch, who came to Wilber with
his parents at the age of 16, had been
employed by the bank since 1910 when
he took the post of assistant cashier.

Becomes Examiner
Harold E. Hackstock has accepted a
position as an assistant national bank
examiner. He will be with the Treas
ury Department office of the Comptrol
ler and will headquarter at Kansas
City, Missouri.
Mr. Hackstock will specialize in ex
amination of trust procedures of banks
in the Tenth Federal Reserve District,
which have trust departments. The
Federal Reserve District is comprised
of Nebraska, Kansas, Colorado and
Wyoming and parts of New Mexico,
Oklahoma and Missouri.
Mr. Hackstock has been senior teller
at Fremont National Bank. He joined
the bank in 1942 and has served there
since that time with the exception of
three years’ military service.

1 9 5 2 X e b r n s k n G rou p iïleetin tjs
The following are the meeting places and dates for the 1952
series of Group Meetings of the Nebraska Bankers Association.
G rou p

C ity

D a te

One

Lincoln

April 21

Two

F remont

April 22

Three

Norfolk

April 22

Five

North Platte

April 23

Six

Sidney

April 24

Four

Hastings

April 25
Nort hwest ern Banker, April, 1952

\
52

MAHA has opened a new and in
tensive drive for more industries
in 1952. A city-wide committee of
business and industrial executives
was named. From that group an exec
utive committee was chosen.
Among the vice chairmen of the
executive committee is E. F. Pettis,
former banker and now a department
store executive. Mr. Pettis is chair
man of the Omaha Development Coun
cil.
The new program is known as BIG
(bigger industrial growth).

Executive committee members also
include AV. Dale Clark, chairman of
the board of the Omaha National
Bank; Ellsworth Moser, president of
the United States National Bank of
Omaha, and Fred A\r. Thomas, presi
dent of the First National Bank of
Omaha.
The general chairman for BIG is
Morris Jacobs, advertising firm head.

The Committee of ’52 added eight
new members after the drive got un
der way. Among them was Chris Ab

OFFICERS
G. E. Porter
Chairman of the Board

At Your Service!

J. A. Greenfield
President

The rise and fall of live stock prices

T. J. McCullough
Vice President

often presents a loan problem to

M. E. Blanchard
Cashier

banks in feeder areas. This bank is
glad to help you when you require

H. H. Broadhead, Jr.
Assistant Vice President

assistance on your ''overlines.''

L. J. Komer
Assistant Cashier

FERST

ONLY BANK IN THE YARDS ”
Member Federal Deposit Insurance Corporation

SCARBOROUGH Associates G roup Insurance Plan
covers the entire bank staff, including Directors. It
provides the most complete benefits at lowest cost. Let
us send you the details.

bott, Hyannis, Nebraska, banker and
rancher.
* * *
J. Francis McDermott, senior vice
president of the First National Bank
of Omaha and reigning King of AkSar-Ben, told 300 clothing and jewelry
wholesale buyers at Omaha that 1952
“promises to be a good year for con
sumer purchasing.”
He was the guest at a luncheon
sponsored by the Central West Market
Association at the Paxton Hotel.
He said that one of the reasons for
buyer resistance during the past year
was the rush of buying that immedi
ately followed the outbreak of the
Korean War. People committed them
selves to time-payment buying, he
stated, and “now most of the 18-month
payments are over.”
He said that the buying rush caused
high prices, followed by a declining
market, and “people seldom buy on a
declining market.”
* * *
A. J. Rhodes, vice president of the
Omaha National Bank, has been
elected first vice president of the Yel
low Tie Club, an organization of Oma
ha Chamber of Commerce good will
trippers.
* * *
Seventy-four years ago, John H. Bexten, then 18, came to Nebraska “dying
of consumption.”
While waiting to see if the doctors’
predictions were correct, Mr. Bexten
spent 43 years with the First National
Bank of Omaha and 24 years in retire
ment.
He died recently at an Omaha rest
home at the age of 92.
Starting with the bank as a book
keeper in 1886, when the institution
was housed in a small frame building
near Thirteenth and Farnam Streets,
he worked his way up to cashier. He
was widely known throughout the
Omaha territory.
* * *
Edward AW Lyman, vice president
of the United States National Bank of
Omaha, was named president of the
United Community Services of Omaha
at the anual meeting in the Blackstone
Hotel. He had been vice president
and was budget chairman last year.
John F. Davis, vice president of the
First National Bank of Omaha, was
elected treasurer. E. F. Pettis, former
banker and now a department store

P R O V ID IN G G R O U P L IF E , A C C ID E N
T A L D E A T H A N D D IS M E M B E R M E N T ,
A C CID EN T A N D S IC K N E S S , H O SP IT A L
A N D S U R G IC A L B EN EFIT S

FIR S T N A T I O N A L B A N K B U I L D I N G , C H I C A G O 3 , I L L I N O I S

Northwestern Banker, April, 7952

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

Bank is an organization of people that provides a
variety of services to its patrons . . .

‘7

have

hut o n e

la m p

w h ic h

m y

feet

a r e g u id e d ,

and

th a t

th e

la m p o f

E x p e r ie n c e ”

P atrick H enry

E x p e rie n c e
is a controlling factor in the quality of our service.

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

Nort hwest ern Banker, April, 1952

Nebraska News
i

executive, was named secretary. Daniel J. Monen, vice president and trust
officer of the Omaha National Bank,
the outgoing president, was honored
for his work in the record-breaking
Community Chest drive last fall. He
was given an “Oscar.”
The 20 Year Club of the Omaha
National Bank, composed of 82 of the
bank’s 300 employes, admitted three
new members recently at the annual
dinner at the Blackstone Hotel.
They are Elsie Christenson, Robert
Priborsky and Leonard Whitman. The
club elected as directors Miss Christen
son, Anna Peterson and Charles Ja
cobson.

=(= * *
Guy E. Reed, executive vice presi

dent of the Harris Trust and Savings
Bank of Chicago, native Nebraskan
and widely known throughout the na
tion as a public speaker, addressed the
University of Nebraska’s Omaha Alum
ni Club Charter Day dinner at the

Blackstone Hotel in Omaha recently.
Mr. Reed was born at Holdrege,
Nebraska, and was graduated from the
University of Nebraska in 1911.
He is a director of the Chicago Crime
Commission.
=t= * =t=
Florida was chosen as the vacation
destination by Mr. and Mrs. Wade R.
Martin, where they spent several
weeks during March visiting with Mr.
Martin’s sister, at Miami Beach. Mr.
Martin is vice president of the Live
Stock National Bank of Omaha.
* * *
The Omaha City Comptroller rec
ommended to the city council that it
sell nearly $2,000,000 in city improve
ment bonds to the Kirkpatrick-Pettis
Company, Omaha investment firm.
The firm, acting for a four-firm com
bination, submitted the apparent low
bid. There were 11 bids. Under the
Kirkpatrick-Pettis bid, the net cost to
the city would be 1.2906 per cent, in
interest.

A * JUncol+i--- *7Ue. GarU i+iental

S E R V IC E ...
The measure of growth—

Last June, a $1,200,000 issue of City
Auditorium bonds was sold at a cost
to the city of 1.6 per cent.
* >1= *
L. Dale Matthews, vice president
and executive officer of the North Side
Bank of Omaha, has been reappointed
to a six-year term on the North Omaha
Bridge Commission by the Douglas
County Board. His two-year term is
expiring.
=1= * >H
A new ranch type home is being
completed for Mr. and Mrs. J. C. Rahel
west of Omaha at 8423 Loveland Drive.
Mr. Rahel is first vice president and
treasurer of the Wachob-Bender Com
pany, investment banking firm. There
will be a formal garden on the
grounds.
The exterior of the house is of 12inch red cedar siding, painted graygreen, with shutters and doors of
white. The entrance hall is paved
with split bricks. There is a corner
fireplace of Colorado stone.
* * *
Mrs. Otto H. Schurman, 78, widow
of a Fremont, Nebraska, banker who
moved to Omaha after his retirement,
died at her home in Omaha recently.
She was the mother of Mrs. Wallace
E. Spear, whose husband is trust offi
cer of the First National Bank of
Omaha.
=t= * *
David F. Davis, vice president of
the Omaha National Bank, was elected
secretarjMreasurer and was re-elected
a director of the Florence Home for
the Aged at Omaha at the annual meet
ing.
W. B. Lane, attorney, was named
president of the board of trustees,
succeeding Harry E. Dickinson, presi-

-F

(Co n t i n e n t a l R a t i o n a l

BaNK
LINCOLN

B A N K S

a
B „°du sGo H
L5

A C O N F ID E N T IA L , P E R S O N A L SERVICE
F O U N D E D O N 25 Y E A R S E X P ER IEN C E

Bankers Service Company

Member Federal Deposit Insurance Corporation

HENRY H. BYERS. Pres.
Lock Bos 1435
DES MOINES 5. IOW A

N. B. SHAFFER. V.P.

E. G. UNTIEDT. V.P.
Lock Bos 1421
COLORADO SPRINGS. COLO.

IN ST. JOSEPH

No Other Bank Gives You

MORE* for YOUR MONEY
Than the

T O O T L E -L A C Y
GRAHAM G. LACY MILTON TOOTLE
CH. OF THE BOARD

PRESIDENT

R. E. WALES
EXEC. V. P.

FRED T. BURRI

E. H. SCHOPP

E. L. CRUME

VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT

V
Northwestern Banker, April, 1952

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Federal Reserve Bank of St. Louis

Nebraska News
dent for 15 years. An honorary office
of board chairman was created for
Mr. Dickinson.
* * *
Arthur H. Wiesenberger, New York
investment banker, visited Omaha re
cently to look at some of the 20 gifts
he has sent to the Joslyn Art Museum
since 1945. It was his first visit to
the Joslyn Museum.
When a group of New York art pa
trons became dissatisfied with what
Mr. Wiesenberger called the Metropol
itan Art Museum’s “antiquated meth
ods,” they decided to protest by send
ing objects from their private col
lections to “progressive” museums
throughout the nation.
Joslyn was one of the museums
chosen.
* * *
The annual party of the Omaha Na
tional Bank’s George Washington Club
was held recently at the Blackstone
Hotel in Omaha, with Vice President
A. J. Rhodes of the bank in charge.
Members of the club are boys and
girls up to age 14 who have found
money or other property which has
been lost, and who have turned it in
to their teacher.
Mr. Rhodes got the idea in 1947.
The club started with six members
and now has around 300.

Omaha business leaders directing a
drive for more industry in the area
heard more about oil development re
cently.
A Texas banker who had toured
the west north-central states and who
thinks Omaha is a natural center for
developing oil fields, spoke to the 81member Committee of ’52 March 11th
at the Omaha Chamber of Commerce.
He is Robert Kneebone, vice presi
dent of the National Bank of Com
merce of Houston. He believes Omaha
could be a major oil refining and proc
essing center.
* >i= *
J. Francis McDermott, senior vice
president of the First National Bank
of Omaha and King of Ak-Sar-Ben,
has completed 33 years with the First
National.
He has been with the bank continu
ously except for two tours of military
duty in both world wars.
* * *
Among the Ak-Sar-Ben membership
drive teams which reached their goals
before the drive ended was one headed
by Ellsworth Moser, president of the
United States National Bank of Oma
ha, and Julius J. Alms. Mr. Moser is
a governor of Ak-Sar-Ben.
* * *
The conference of The Lake & Mid-

West Divisions of the Association of
Bank Women will be held in Omaha,
Nebraska, April 25th, 26th and 27th,
at the Fontenelle Hotel. Principal
speakers will be Mrs. Mabelle Ken
nedy, assistant treasurer of the United
States, and J. Francis McDermott, Sr.,
vice president of the First National
Bank of Omaha.
* * *
The Omaha National Bank, executor
of the estate of James R. Cain, 74,
retired vice president of the bank,
recently took district court action
against Douglas County Treasurer
Carl W. Jensen, to prevent his collect
ing taxes on certain stocks held by
the estate.
Mr. Cain died in September, 1950, at
Long Beach, California.
The bank alleged that the county as
sessor levied personal property taxes
of $924 against stocks in four compa
nies held by the estate when the com
panies are “domestic” firms, stock of
which is not assessed against the
owner.-—The End.

Change at Brainard
Gene B. Doeckal, who has been em
ployed as bookkeeper at the Bank of
Brainard, Nebraska, since last May, re
signed his position to enlist in the
U. S. Army Air Force. Taking his
place at the bank is Mrs. Valina Dus.

*MORE personal service — *MORE types of service — *MORE
friendliness —

*MORE people who are

interested in you.

NATIONAL BANK
MILTON TOOTLE. JR.

CHAS. BURRI

VICE PRES. & CASHIER

ASST. VICE PRES.

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Federal Reserve Bank of St. Louis

GILBERT TOOTLE

A. E. LABOUFF

ASST. VICE PRES. ASST. CASHIER & AUDITOR

ST. JOSEPH, MO.

PAUL R. ABERSOLD PHOEBE BUZARD ROBERT DOUGLAS
ASST. CASHIER

ASST. CASHIER

TRUST OFFICER

Member of Federal Deposit Insurance Corporation

Northwestern Banker, April, J952

Our officers welcome the op

total capital structure of $143,000.
In addition, action was taken to
change the articles of incorporation
raising the authorized capital stock
from $50,000 to $100,000.
The rapid growth of northeast Lin
coln is demanding enlarged facilities
also and Citizens State is planning to
build additional room and to remodel
bank fixtures.
* * *
Carl Ganz, vice president of the
National Bank of Commerce, spoke on
“Wills and Estate Taxes” at the Lin
coln Credit Women’s Breakfast Club.
The meeting was held at the Cornhusker. Hotel.
Miss Virginia Kenyon presided at
the meeting and Mrs. Helen Kane, pro
gram chairman, presented the guest
speaker.
Post-convention c o m m e n t s were
made by Miss Kenyon concerning the
Sixth District Convention of the Con
sumers Credit Association.
* * *
Lincoln’s February bank clearings
increased $2,188,942 over the corre
sponding month last year, the Clearing
House Association reported. The fig
ures are: February, 1952, $34,439,574,
and February, 1951, $32,250,582.
Total for the first two months of the
year also shows a gain of $2,346,582.
The comparative figures are: 1952,
$72,967,802, and 1951, $70,621,220.
* * *
Edgar F. Suavely, 76, Lincoln, a re
ligious, political and financial leader
in the city, died recently.
He had served as secretary of the
Lincoln Savings and Loan Association,
the Homestead Bond and Safe Deposit
Company, the Security Savings and
Loan Association and had aided in
organizing the old Lincoln State Bank.
He served a term as president of the
State Association of Building and
Loan Associations.

portunity of giving you quick,

Depositories

a . KNIGHT, president of
the Citizens State Bank of Lin
coln, announced that by action of the
stockholders and directors the capital

G EORGE

stock of the bank has been increased
from $30,000 to $50,000. The surplus
remains at $50,000 and the undivided
profits at $43,000, giving the bank a

efficient correspondent serv
ice . . . plus friendly counsel
. . . plus a genuine interest in
your problems.

The Farmers State and First Na
tional Banks in Aurora, Nebraska,
have placed orders for the installation
of after hour depositories. This will
permit bank customers to make depos
its of cash and checks at any time
when the bank is closed.

Soil Test Service

THE FIRST NATIONAL BANK OF LINCOLN
LINCOLN, NEBRASKA
Member Federal Deposit Insurance Corporation

The First National Bank, Beatrice,
Nebraska, announced it has made ar
rangements with the University of
Nebraska College of Agriculture Soil
Testing Laboratory to act as a “clearYOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE. VAULT AND
TIMELOCK EXPERTS

F. E. DAVENPORT & CO.
OMAHA

Northwestern Banker, April, 1952

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Federal Reserve Bank of St. Louis

Nebraska News

ing house” for farmers’ soil samples
in that area.
Containers and instruction sheets
may be picked up at the bank. Soil
samples and information sheets are
returned to the bank, which forwards
them to the university. When the
analysis has been made, a duplicate
of the report may be picked up at the
First National. The fee will be 50
cents, rather than the usual $1.00.

Emil Dwehus
Emil Dwehus, 82, Dannebrog, Ne
braska, banker for 45 years, died re
cently at Pueblo, Colorado.
Mr. Dwehus had been visiting a
daughter, Mrs. Ray E. Isaacson. He
retired a year ago as cashier of the
State Bank.

Going Up
The First National Bank of Holdredge, Nebraska, has climbed during
the past year to 2,526th in size in the
United States. The bank moved up
from 2,607th position over the nation
the previous year, based on deposits,
financial reports show.

H. E. SWEDBURG
Vice President

MYRON WEIL
Vice President

See our representatives, Myron

With Genoa Bank

W eil and H. E. Swedburg, at the

Mrs. Tom Kenyon has accepted a
position with the Genoa, Nebraska,
National Bank. She started last
month.

Nebraska

group

meetings

from

April 21st to April 25th, inclusive.

Lobby Depository
A lobby depository, designed to
overcome waiting in line for custom
ers, has been installed in the McDon
ald State Bank, North Platte, Nebras
ka, it was announced by President
J. Y. Castle.

NATIONAL BANK of COMMERCE
LINCOLN, NEBRASKA
50 Years at 13th and O St reet s
Home of Compl et e Banking Service

French Nominated
Horace S. French has been nomi
nated by the board of governors of
the Chicago District for the office of
vice president of the Illinois Bankers
Association.
“ The Colonel,” as he is known to his
many friends, spent the early portion
of his more than 30 years in banking
as a country banker and as a national
bank examiner.
In 1933 he represented the Comp
troller of the Currency in the Seventh
Federal Reserve District, supervising
the qualifications of banks licensed to
reopen, and from August, 1934, to
date has served as president and di
rector of the Manufacturers National
Bank of Chicago.

BANKS
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OF C O N FID E N TIA L

AND

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Northwestern Banker, April, 1952

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Federal Reserve Bank of St. Louis

59
the Security National Bank, Sioux
City, Iowa.
R. G. Collins, vice president of the
First National Bank of Chicago, was
the speaker.
The talk treated the various kinds
of bonds and stocks and the principles
of investment.

Complete Remodeling
Presidential Candidate
As mentioned briefly elsewhere in
this issue, members of Group Eleven
at the annual meeting in Burlington
in February, endorsed Lee Holland,
vice president of the Washington State
Bank, Washington, Iowa, as a candi
date for president of the Iowa Bank
ers Association, election to take place

ton; Frank Kos, cashier, Washington
State Bank, and Charles Bosier, vice
president, Burlington Bank & Trust
Company.

Add To Surplus
Jon A. Nelson, cashier of the Farm
ers State Bank, Luverne, Iowa, states
that the board of directors has added
$25,000 to the bank’s surplus. Figures
now stand at capital, $25,000; surplus,
$50,000, and undivided profits of $29,567.

McDonald Honored
Last month, W. A. McDonald cele
brated his 25th anniversary as a di
rector and associate of the Jefferson
State Bank, Jefferson, Iowa. Mr. Mc
Donald is active in his office of vice
president. The event was celebrated
with a surprise dinner, at which 32
were present, including all the staff,
their wives and husbands, together
with Mr. McDonald’s son, Kenneth and
his wife, Mrs. Alice G. Brenton, Jr.,
Mr. and Mrs. Albert J. Robertson, Mr.
and Mrs. G. C. Kelly and W. H. Bren
ton. A beautiful “anniversary” clock
was presented to Mr. and Mrs. Mc
Donald to mark the occasion.
LEE H O LLAN D
Candidate for President
Iowa Bankers Association

Forum Speaker

E. J. Paul, vice president of the Fi
delity Savings Bank, Marshalltown,
Iowa, states that remodeling of his
bank, including new fixtures, lighting
and expanded facilities, is completed.
The Fidelity Savings Bank is cele
brating its anniversary this year—60
years of uninterrupted or restricted
service.

No New Cashier

Paul Groszkruger, president of the
Citizens State Bank, Belle Plaine,
Iowa, advises that the bank will not
elect a new cashier at the present
time, to replace A. J. Bird, who has
gone to Tama as vice president of the
Tama State Bank. In addition to Mr.
Groszkruger as president, officers of
the bank are Wesley Mansfield, vice
president; M. D. Dreibilbis, Lee Rich
ards and Feme Throndsen, assistant
cashiers.

Annual Meeting
The stockholders of the Benton
County Savings Bank, Norway, Iowa,
held their stockholders’ meeting last
month. The following officers were
re-elected: Henry O. Schloeman, pres
ident, and John C. Schulte, vice presi
dent. The stockholders also voted to
increase the capital stock from $15,000
to $30,000 by a 100 per cent stock
dividend.
The annual directors’ meeting fol
lowing the above meeting re-elected
Prestiss G. Folvag, cashier; Homer
Monk, assistant cashier, and Colleen
Dyrland and Mary Volz, tellers.

A Chicago banker discussed bonds
at the annual meeting of the State
and stocks in the third of a series of
Association in Des Moines next Octo
weekly financial information pro
ber.
Mr. Holland has been a banker since grams presented for business men by
1918, and in 1921 became associated
with the Washington State Bank. Dur
1U 52 i o t r n G r o u p M e e t in g s
ing past years he has been on many
standing committees of the Iowa
The hotel or country club in each town where meetings will be
Bankers Association and has been
held, and the definite programs to be given have not been an
both secretary and chairman of Group
nounced. When this information becomes available it will be pubEleven. He, of course, has held nu
lished in forthcoming issues of the NORTHWESTERN BANKER
merous civic offices in the city of
for your convenience.
Washington.
The committee of bankers named to
Meeting Place
Date
Group
further Mr. Holland’s campaign is as
Alhia
May 6
Tuesday,
10
follows:
Council Bluffs
May 7
Wednesday,
5
E.
A. Ebersole, vice president and
Grundy Center
May
8
Thursday,
7
cashier, State Central Savings Bank,
Maquoketa
May 9
Friday,
8
Keokuk; Ralph Eastburn, president,
Iowa State Bank, Fairfield; John
West Union
May 20
Tuesday,
4
Budde, president, Henry County Sav
Mason City
May
21
Wednesday,
3
ings Bank, Mt. Pleasant; Lee Huston,
Fort Dodge
May 22
Thursday,
2
executive vice president, Columbus
Marshalltown
May 23
Friday,
6
Junction State Bank; Frank Crone,
president, National Bank of Washing

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Federal Reserve Bank of St. Louis

Nort hwest ern Banker, April, 1952

Iowa News

Burlington Open House
Recently the Burlington Bank &
Trust Company, Burlington, Iowa, had
a successful open house to celebrate
the completion of its remodeling pro
gram. There were at least 3,000 peo
ple who came in between the hours
of 3:30 and 8:30.
The bank started the project a year
ago last January and first built a book
keeping department and book vault in
the adjacent building, owned for many
years. This was completed in the late
summer. It also put in a small recrea
tion room for employes, complete with
kitchenette. Then the bookkeeping
department was moved from the main
banking room into the new part, which
has complete new fixtures, lighting
and air conditioning.
In the main banking room were in
stalled new wooden fixtures of nat
ural walnut. The trust department
was moved into the space formerly oc
cupied by the bookkeeping department
and the officers’ space was enlarged.
The bank put in complete new light-

ing, lowered the ceiling, and the whole
room was completely redecorated. Re
modeling has given much additional
working space.
The architects were Morgan and
Gelatt and the general contractor, Carl
A. Nelson & Company, both local firms.
At the time of the open house the
bank made an increase of capital from
$200,000 to $300,000 by transferring
$100,000 undivided profits to capital ac
count and declaring a 50 per cent stock
dividend.

County Election
Herman Elsenbast, cashier of the
Graettinger, Iowa, State Bank, was
elected president of the Palo Alto
County Bankers Association. He suc
ceeds George Freeman, cashier of the
Cylinder State Bank.
K. A. Reeves of the Iowa Trust and
Savings B a n k , Emmetsburg, was
named secretary and treasurer. All
banks of the county were represented
at the meeting except the Iowa State
Bank of West Bend.

George Benner, prominent Montrose
farmer and business man, and a direc
tor of the Keokuk Savings Bank, is
in charge of the Montrose operation,
which gives that community its first
home banking service since the de
pression days.

Council Candidate
J. F. Kennedy, president of the First
National Bank, New Hampton, Iowa,
and past president of the Iowa Bank
ers Association, has announced him
self as a candidate for a member of
the American Bankers Association
Executive Council when election takes
place at the A.B.A. in 1952 annual con
vention.
His candidacy is announced to suc-

50 Years

\i\ lntinuile

personalized

Correspondent
Bank Service
B a s e d on a P o l i c y
of Cooperation
-n o f Competition
Under the direction o f officials w ith
years of service in this field, assur
ing a know ledge of requirements
and valuable assistance.

Hundreds of friends from Buena
Vista county and northwest Iowa vis
ited the Citizens First National Bank
in Storm Lake, Iowa, to help George
and Harry Schaller celebrate the 50th
birthday of the bank which George
Schaller and his father, Fred, pur
chased in 1902. Flowers from other
concerns and individuals filled every
available space in the bank.

Cashier Resigns
C. E. Waters has resigned his posi
tion as cashier of the Hartford-Carlisle
Savings Bank in Carlisle, Iowa. His
future plans are as yet indefinite, al
though he with Mrs. Waters and Mrs.
Julia Gross will be leaving Carlisle in
the near future.

V SR A N » TRU ST
ompan*

new

vork

A new business was added in Mont
rose, Iowa, when the Keokuk Savings
Bank and Trust Company opened its
Montrose office in a new building
erected for that purpose, Edward K.
Johnstone, president, announced.

Established J90«
vIAIN

Member:

OFFICE: 57
xT

York Clearing House
federal Deposit

s t a n c e Corporal _

YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE. VAULT AND
TIMELOCK EXPERTS

F. E. DAVENPORT & CO.
OMAHA

Scarborough’s planning and service are by-words in

the banking fraternity. They are available to you, along

with the broadest protection at the lowest cost.

ceed the post of W. W. Blasier, Farm
ers State Bank, Jesup, Iowa, whose
term on the council expires this year.

County Meeting

Montrose Office

ubile Nati««»'

J. F. K E N N E D Y
Candidate for executive council
of A .B .A .

Robert Webb, assistant cashier of
the Sheffield Savings Bank, has been
elected secretary of the Franklin Coun
ty, Iowa, Bankers Association. W. S.
Norton, vice president of the Hampton
State Bank, was elected president of
the group, succeeding H. O. Webb,
cashier of the Sheffield Bank, who
served in that capacity during the past
year. Henry E. Janssen, vice presi
dent of the Farmers State Bank at
Dows, was elected vice president of
the association.

Scarborou gh &
*T|§ C o m p a n y lns"'<‘nce c°°

iunselors

to B a n k s

FI RS T N A T I O N A L BANK B U I LD I N G • C H I C A G O 3, I LL I N O IS . STale 2 - 4 3 2 5

Nort hwest ern Banker, April, 1952

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Federal Reserve Bank of St. Louis

p
É

/ V
jf i c

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ie

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n

t l) u

V
o

r s

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1917 • Our 35th Year o f Service • 1952
Northwestern Banker, April, 7952

62
3:15
3:25

Recess.
“Your Bank and Wage Stabili
zation” — Claude V. McBroom,
director of manufacturing, Mer
edith Publishing Company.
3:55 “Systematic Aggressiveness” —
Albert J. Robertson, senior vice
president.
4:30 Recess.
5:30 Social Hour—Des Moines Room.

Evening Session
Terrace Room
Dinner.
“Outlook for Interest Rates”—
George B. Roberts, vice presi
dent, The National City Bank of
New York.
* * *
More than 200 men attended each of
the eight sessions of the Central Na
tional Bank and Trust Company’s
“Men’s Finance Forum,” which was
scheduled to conclude with the final
meeting on April 8th. The Forum was
held on Monday and Tuesday nights
during four successive weeks. It was
necessary to hold two meetings in
stead of one each week as originally
planned because of the nearly 500 reg
istrants.
The “Men’s Finance Forum” was
held by popular demand because of
the great interest evidenced following
the Central National’s “Women’s Fi
nance Forum” last year.
Noel T. Robinson, vice president and
trust officer of the Central National,
presided over each of the meetings and
introduced the speaker at the four
meetings. Walter L. Stewart, vice
chairman of the board of directors at
the Central National, welcomed the
guests at the opening session, and Ed
win F. Buckley, president, was sched
uled to conclude the Forum with his
closing comments on the success of
the meetings.
Each man attending the Forum was
provided with a printed, spiral-bound
notebook containing a complete pro
gram for the four weeks, and thumbindexed with each speaker’s name. A
separate section was devoted to each
of the speakers, and contained an out
line of the talk to be given, with sev
eral pages for notes. One of the bestliked features of the Forum was the
“Question and Answer” period imme
diately following each talk.
The four topics covered were life
insurance and social security, wills
and estates, investments, and taxation
of estates.
* *
John W. Vosick, assistant cashier,
First Federal State Bank, has resigned
to accept a position as examiner with
the First Service Corporation of Min
neapolis. Mr. Vosick has taken up his
new duties and will move his family
to Minneapolis within a short time.
6:30

INVITATIONS have been sent to
I bankers all over Iowa by the IowaDes Moines National Bank to attend a
Correspondent Bank Conference in
Des Moines on Wednesday, April 16th.
Registrations coming to the bank by
return mail indicate that approximate
ly 300 bankers will be on hand at
Hotel Savery for the one-day confer
ence, the first state-wide meeting of
its kind in Iowa.
In revealing the program for the af
fair, Calvin W Aurand, president of
the Iowa-Des Moines National Bank,
pointed out that the nine speakers will
deal with the practical aspects of
every-day banking problems.
Headlining the program is George B.
Roberts, vice president and economist
of The National City Bank of New

York, who will be the banquet speaker.
He will discuss “Outlook for Interest
Rates.”
The meeting will start at 1:00 a. m.
with an address of welcome from Mr.
Aurand. He will be followed by two
speakers from the bank’s official staff.
Two speakers are scheduled for the
luncheon session and four speakers
will complete the afternoon program,
including two talks by officers of the
bank.
A social hour will precede the din
ner. The complete program follows:

Morning Session
10:30
11:00
11:10
11:45
12:15
12:30

lor the
d liic e

Des Moines Room
Registration.
Address of Welcome — Calvin
W. Aurand, president.
“Consumer Credit Operations”
Gerald O. Nelson, vice presi
dent.
“ Commodity Loans — Ware
house Receipts,” John DeJong,
vice president.
Recess.
Luncheon—Terrace Room.
“ Iowa Bank Survey” — Henry
Kroeger, Director of Research
and The Iowa Poll, Des Moines
Register and Tribune.
“Telling the World Effectively”
— Arthur Brayton, secretary,
Des Moines Convention Bureau.

Afternoon Session

KOCH
BROTHERS
GRAND AVE. AT FOURTH

Des Moines Room
2:15 “ Cattle Feeders’ Outlook and
Problems”—Rex Beresford, Ex
tension Specialist in Livestock
and Marketing, Iowa State Col
lege, Ames.
2:45 “Trust Services for Iowans”—
Clyde H. Doolittle, senior vice
president.

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Nort hwest ern Banker, April, 7952

Iowa News

Bunk Families Take a Tour

ginia, where Mr. Brown attended a
meeting of the Agricultural Commis
sion of the American Bankers Associa
tion. Mr. Brown had a part on the
program.

Women's Forum
A total of 1,720 women attended the
four sessions of the Women’s Forum
sponsored by the Poweshiek County
National Bank, Grinnell, Iowa. The
fourth and last session was attended
by 425 women and 31 children were
given nursery care while their moth
ers absorbed advice on investments
given by Professor J. W. Charlton of
Grinnell College.

}

Resigns
PART o f the 439 persons who attended “ Family Bank Night” at the Iowa-Des
Moines National Bank are getting an idea of the collections department operations
from A1 Rodine (left foreground). The purpose of the fam ily affairs was to let
mothers and fathers, husbands and wives and children become acquainted with
the Work the members of their families are doing in the bank.
Run strictly on an informal basis, the guests were conducted in small groups
through the bank, where members of each department were on duty to explain
the individual operation o f the department and how it fits into the over-all service
the bank provides the public. Highlight of the evening for the 69 youngsters was
“ Cowboy Theatre,” which on more formal occasions is the directors’ room. On
“ Family Night” however, the walls resounded to the laughter of the kids as they
watched cowboy movies and cartoon shorts while munching popcorn and potato
chips in true Saturday matinee style.
President Calvin W. Aurand spoke a few words of welcome to the crowd, other
wise the entire evening consisted of peeking into every nook and cranny of the
bank, winding up with a buffet supper served in the main lobby from the bank’s
large statement counter.

D. W. Johnson

MERCHANTS
MUTUAL

BONDING
COMPANY

Services for Daniel W. Johnson, 75,
chairman of the board of directors of
Farmers & Merchants Bank, Ottumwa,
Iowa, were held last month.
A lifelong resident of Wapello coun
ty, he was a member of the Agency
Methodist Church and Masonic orders.
Survivors include his wife, two daugh
ters, two sons and two grandchildren.

Incorporated 1933

Spoke In Virginia
Home Office
2100 GRAND AVENUE
Des M oines, Iowa

This is Iowa’s oldest surety company.
A

progressive

company with experi

enced, conservative management.
W e are proud of our three hundred
bank agents in Iowa.
To be the exclusive representative of

Walter L. Brown, manager of the
Farm Service Department of the Com
munity National Bank & Trust Com
pany, Knoxville, Iowa, and Mrs. Brown
returned from a trip to Roanoke, Vir

Edward J. Wood has tendered his
resignation as assistant cashier of the
First National Bank of Logan, Iowa.
The resignation will be effective June
1st.
Future plans of Mr. Wood are some
what indefinite, he stated, although he
plans to move to Colorado.

Leaves Boone
Stan Miller, assistant cashier of the
Boone State Bank, in Boone, Iowa,
for the past two years and a member
of the bank staff for three and one-half
years, has left the employ of the bank.
Mr. Miller said he had no definite
plans for the future, but said he plans
to remain in the banking business.

C. A. Williams
C. A. Williams, chairman of the
board of the Mahaska State Bank,
Oskaloosa, Iowa, died following a
heart attack while vacationing in Cali
fornia.
He was also vice president of the
Hawkeye Lumber Company of Oska
loosa and chairman of the executive
committee of the Bituminous Casualty
Company of Rock Island, Illinois.

It’s not only the Irish that put store
in St. Patrick.
Take W. L. Spencer, president of
the Oakland, Iowa, Savings Bank. He
is English as tea and crumpets and
his only Irish is that which rubbed
off on him as he grew up in the Irish
community of Neola.
Mr. Spencer has an Irish green bow
tie that he bought something over 25
years ago. Each St. Patrick’s day

BANKS
W. W . W ARNER
Secretary-Treasurer

N o r t h w e s t e r n Ban ke r, A p ril,

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Federal Reserve Bank of St. Louis

a nd U s t / l D

A C O N F ID E N T IA L , P E R S O N A L SERVICE
F O U N D E D O N 25 Y E A R S E X P ER IEN C E

Bankers Service C ompany
HENRY H. BYERS, Pres.
Lock Box 1435
DES MOINES 5, IO W A

7952

That Green Tie

this company is an asset to your bank.

E. H. W A R N E R
President and Manager

N. B. SHAFFER, V.P.

E. G. UNTIEDT, V.P.
Lock Box 1421
COLORADO SPRINGS. COLO.

Iowa News

since then he carefully takes it from
the tissue paper wrappings and wears
it proudly.

ley, Manchester, Jesup, Independence,
Edgewood and Colesburg were repre
sented.

dent of Central National Bank and
Trust Company, Des Moines.

Savings Bond Director

Mrs. Henry Donhowe

Lobby Service

C. E. Bradley, president of the Page
County State Bank, Clarinda, Iowa,
has been appointed east Page county
chairman of the savings bond division
by Roger F. Warm, state director.
Mr. Bradlay was born in Taylor
county, but has lived in Clarinda for
the past 35 years. He is a past presi
dent of the Page County Bankers Asso
ciation and currently is serving as
vice president of the local Kiwanis
Club.

Mrs. Henry Donhowe, 76, whose late
husband was a banker, auctioneer and
former state representative, died in
Story City, Iowa, of a heart ailment
and pneumonia which developed fol
lowing a hip injury suffered several
weeks ago.
She had lived in Story City 56 years.
Survivors are a daughter in California
and two sons, Earling of Hampton,
and Arthur T. Donhowe, a vice presi

The First Trust and Union Savings
Bank, Sigourney, Iowa, has placed an
adding machine in the banking room
lobby with a sign “This adding ma
chine is for your convenience.” The
adding machine is for customer use
and all are invited to use it. This is
a new service and as far as is known
is unique. It is expected to be quite
a help for the bank’s depositors in
making up their deposit tickets.

With Billings Bank
C. Glenn Rye, formerly of Northwood, Iowa, has taken a position as
vice president of the Midland National
Bank at Billings, Montana, where he
took over his duties March 15th.
Mr. and Mrs. Rye and three children
moved from Northwood to Des Moines
about one and one-half years ago. He
was executive vice president of the
Federal State Bank until last summer
when he sold his interests. Prior to
that he was examiner for the FDIC.

Dinner Speaker
The central Iowa chapter of the
National Association of Purchasing
Agents held a dinner meeting in Des
Moines where Charles Carey, vice
president of the Harris Trust & Sav
ings Bank, Chicago, Illinois, spoke on
“ Economic Relation of Business and
Finance.”

In Fremont Bank
Elmer Agena is in Fremont, Iowa,
to asssume a position at the Farmers
Savings Bank. He went there from
Allison where he has been employed
in a bank the last five years. Prior
to being in Allison he was in the Army
for three and a half years.

THE

WATERLOO
S A V IN G S BANK
Member— Federal Reserve System and
Federal Deposit Insurance Corporation

WATERLOO, I O W A
★
You are invited to make use of
the facilities of this bank when
ever you have financial matters
requiring attention in the
Waterloo area.

★

County Meeting
Last month bankers and banking of
ficials of Delaware and Buchanan
counties were in Manchester, Iowa,
and enjoyed a period of pre-dinner
sociability and heard an entertaining
address by W. W. Blaiser, retired pres
ident of the Farmers State Bank of
Jesup and former president of the
Iowa Bankers Association. At this
meeting the towns of Earlville, Row

Harry G. Northey, Chairman of the Board • Clarence E. Campbell,
President
•
Robert W. Waite, Vice President
•
Carleton Sias,
Vice President • V. Spalding Miller, Vice President and C ash ie r •
Francis R. LaBarre, Vice President and Trust Officer.

POINT-OF-USE

FIRE PROTECTION
FOR

ALL

YOUR

RE C O R D S

PR INTERS* STATIONERS
C O U N C IL
E xclu siv e

BLUFFS.

IO W A

S haw -W a l k er

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Dealer

PHONE

5521

S.W .

Io w a

5 0 Y e a r s C o n tin u o u s S e r v ic e
Northwestern Banker, April, 1952

Iowa News

Winners in Des Moines A .l.B . Contest

WINNERS in the annual proficiency contests sponsored by
the Des Moines Chapter of the American Institute of Banking
are pictured above. At left are first place winners in each of
the contests. Prom left to right the girls are: Pat Lowe, Capital
City State Bank, adding machine contest winner; Beverly
Briggs, Bankers Trust, adding machine contest winner (two
years experience or less), and Hilda Hart, Central National,
typing contest winner. In center rear is Bert Poepping, IowaDes Moines National, money counting contest winner. At left
rear is Don Prunty, at right rear is Willard Dann, and at

extreme right is Arnold Dressier, all of Central National, win
ners of the adding machine relay contest.
In picture at right, eight other winners in the typing contest
watch Hilda Hart, Central National, show how she won first
place. Seated are Leona Sutton and Antoinette Beswick, both
of Bankers Trust. Standing, left to right, are: Joan Murray,
Bankers Trust; Roine Duncan and Ruth. Roline, Iowa-Des Moines
National; Marie Hulderson, Central National; Doris Olson, Iowa
State Bank, and Bernita Conway, Iowa-Des Moines National.

ORE than 75 persons turned out
for the annual adding machine,
money counting and typing contest
sponsored last month by the Des
Moines Chapter of the American Insti
tute of Banking. The contests were
held in the main lobby of the Iowa
State Bank.
The winners in each contest and
their prizes were:

W H Y
YOUR BEST BUY

Adding Machine Contest

Block from Times Square . . . Walking
distance to everything worthwhile.

First, Pat Lowe, Capital City State
Bank, $15; second, Joe Mantz, Bankers
Trust, $10; and third, Paul Griffith,
Bankers Trust, $5.

Adding Machine Contest
(Two years experience or less)

NEW YORK
1400 Rooms, each with
Tub and Shower, from .

$350

First, Beverly Briggs, B a n k e t s
Trust, $10, and second, Lola Sheldon,
Bankers Trust, $7.50.

Adding Machine Relay Contest
First, Willard Dann, Don Prouty
and Arnold Dressier, Central National
Bank, $5, and second, Malcolm Bacon,
Joe Mantz and Paul Griffith, Bankers
Trust, $3.

Money Counting Contest
First, Bert Poepping, Iowa - Des
Moines National Bank, $10; second,
Jerry Hagman, Captial City State
Bank, $7.50, and third, Malcolm Bacon,
Bankers Trust, $5.

MARQUETTE
t t ^
OF

B A

MINNEAPOLIS

Northwestern Banker, April, 1952

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

S t w a y 'p ite a d
acCefcettcCeat
'Saa& e'i

t&e
MEMBER
FEDERAL
DEPOSIT
INSURANCE
CORPORATION

Typing Contest
First, Hilda Hart, Central National
Bank, $10; second, Ruth Roline, IowaDes Moines National, $7.50, and third,
Roine Duncan, Iowa-Des Moines Na
tional, $5.

Joint Meeting
Members of three important com
mittees of the Iowa Bankers Associa
tion are planning a joint meeting at
Iowa State College in Ames on Friday,
April 18th. The meeting will start
at 9:00 o’clock in the morning and
will be held in Room 206 of the Me
morial Union Building.
The committees included are the
agricultural committee, the agricultur
al credit school committee, forestry
committee and the county agricultural
planning committee has also been
asked to take part.

Southwest Election
Orville Thompson, cashier of the
Page County State Bank, Clarinda,
Iowa, was elected president of the
Southwest Iowa Bankers Association
at a recent meeting.
Thirteen Clarinda bank personnel
were among 110 officers and employes
who attended the dinner meeting.

A C O RI \ N
±V

Registers

"A ccepted Sale Registers by Bank
Clerks Everywhere"

For information

w r ite

THE ACORN PRINTING CO .
OAKLAND. IOWA

Iowa News
Other new officers are: Winfield
Mayne of Red Oak, vice president;
Evelyn Sunderman of Clarinda, sec
retary, and Fred Kahl of Mineola,
treasurer.

Dies In Chicago
James Altwege, 49, Redfield, Iowa,
banker, died in a Chicago hospital aft
er suffering a heart attack in a Loop
restaurant.
Mr. Altwege was in Chicago for the
National Installment Conference of
the American Bankers Association. He
was manager of the Dallas County
Bank in Redfield.

Modernization

George M. Bechtel
George M. Bechtel, Davenport, Iowa,
banker and long prominent in finan
cial circles in the midwest, died there
last month. He was 83 years old.
Founder of the First Trust and Sav
ings Bank, he had retired from the
presidency of the institution in Janu
ary, 1947, when his son, Harold R.
Bechtel, succeeded him.
A native of Harrison county, Mis
souri, he was born April 1, 1858, and
spent his childhood in Nevada, Iowa,
going to Davenport in 1890.

Elected President
The board of directors of the Plaza
Bank of Commerce, Kansas City, Mis

An office modernization project cost
ing $10,000 is nearing completion at
the Iowa Trust and Savings Bank, Emmetsburg, Iowa, making it one of the
finest bank quarters in northwest
Iowa.
The high ceilings throughout the
quarters have been lowered four and
a half feet and the new ceilings, an
acostone tile type, is the latest in
bank furnishings. Designed to absorb
sound, the light colored tiles have
reduced noise from posting and adding
machines by 60 per cent, President
Charles J. Spies said.
All of the rooms have been Redec
orated in a pale green and the direc
tors’ room has been remodeled. New
rest rooms have been installed with
tile walls, and new linoleum floor cov
ering will be laid in the officers’ room.

Paul A. Buenneke, who was assist
ant cashier of the Maynard, Iowa,
Savings Bank, enlisted in the Army
and Donald W. Buenneke, formerly of
The Walker State Bank, is now assist
ant cashier of The Maynard Savings
Bank. He is also manager of the
Hazleton office. The office will now
be on a full day schedule. Formerly
it was open only a half day.

B U I L D I N G
A

FOUNDATION
OF

SERVICE

Resigns As Cashier
C. E. Waters has resigned his posi
tion as cashier of the Hartford-Carlisle Savings Bank, Carlisle, Iowa.
His resignation became effective last
month. His future plans are indefi
nite.

Edward M. Dobler, 39 of Vail, Iowa,
recently joined the staff of the OkeyVernon National Bank in Corning, as
a vice president.
From 1929 through 1938, Mr. Dobler
was a junior officer in the Westside
State Savings Bank, Westside. From
1939 to 1951 he operated his own 160
acre farm near Vail.

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Federal Reserve Bank of St. Louis

souri, at a recent meeting elected Ar
thur B. Eisenhower as a director and
president, succeeding the late George
W. Dillon.
Mr. Eisenhower will continue as
director and executive vice president
of the Commerce Trust Company of
Kansas City. He has long been iden
tified with the banking fraternity of
Kansas City. His original banking ex
perience began on May 1, 1905, with
the National Bank of Commerce. He
has worked in practically every de
partment of Commerce Trust Com
pany, was elected assistant cashier in
1917 and executive vice president in
January, 1948, the position he now
occupies.

BANKS

Change At Maynard

Vice President

Member . . .
Federal Deposit
Insurance Corporation
Federal Reserve System

NATIONAL
~-5
-y-j

BANK

OF W A T E R L O O

Northwestern Banker, April, 1952

WHY OUR BANK
SPONSORS "W ILL DAY"
(Continued from page 15)
When the time came for the will to
be probated, we were named in some
instances as executor, although we
stressed the fact that anyone wishing
to make a will was under absolutely
no obligation to either our attorney
or anyone else, and we made absolute
ly no effort to influence our customers
in any way as to who would act as
attorney or executor of the will.
We do not have “Will Day” every
year, as a community no larger than
ours does not warrant this, but about
every three or four years we hold a
“Will Day.”
We have found that it
relieves us of much of the responsi
bility of helping our customers get
legal wills drawn and having them
drawn in such a way as to give the
customer the wishes and desires that
they may have when the time comes
for the will to be probated.
We also find that it helps our cus
tomers to get a will made, rather than

IN H E X OF
A D V E ItT IS E K S

to keep putting it off, and we believe
it has helped our community to settle
estates with as little friction as could
be reasonably expected. While this
has not been any big thing, we do
feel that it has made for good will
with our customers and has helped
the participants and their families to
settle the various estates with good
will and less trouble.—The End.

1952 Summer Session
Final plans for the 1952 summer ses
sion of The Graduate School of Bank
ing were made when the school’s fac
ulty held its annual meeting. This
year’s session of the G.S.B., a school
of advanced study for bank officers
sponsored by the American Bankers
Association, will be held at Rutgers
University, New Brunswick, New Jer
sey, June 16th through June 28th.
Seventy-four faculty members and
special lecturers attended the annual
meeting, along with representatives
of the A.B.A. and Rutgers staffs. The
total teaching staff for the summer
session will number over 60 faculty
members and 21 special lecturers.
i
In v e s to r s D iv e rsifie d S e rv ic e s, In c ............... 3 4
lo w a -D e s M oin e s N a tio n a l B a n k .................. 72
Io w a L ith o g r a p h in g C o m p a n y ..........................64
Io w a M u tu a l In s u ra n c e C o m p a n y ............ 4 3
I r v in g T r u s t C o m p a n y ...........................................4 0

Iv
APRIL. 1952

K och

B r o th e rs

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

L
A

A c o rn P rintin g- C o m p a n y ................................... 66
A m e r ic a n E x p r e s s C o m p a n y ............................ 25
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 .. .24
A s h w e ll and C o m p a n y ........................................... 3 5

L a M o n 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
H o te l L i n c o l n .............................................................. 6 6
L iv e S to c k N a tio n a l B a n k — C h ic a g o ..........28
L iv e S to c k N a tio n a l B a n k — O m a h a ............ 58

B a n k of A m e r i c a .......................................................26
B a n k B u ild in g and E q u ip m e n t C o r p .! ! ! . 1 1
B a n k o f M o n t r e a l.................................................... 4 3
B a n k e r s S e rv ice C o m p a n y , I n c .. . . . . . 54-^64
B a n k e r s T r u s t C o m p a n y — D e s M o in e s . . .61
B an kers T ru st C om pany— N ew Y o r k . . . . 9
H o te l B ilo x i .................................................................32

66
M a rq u e tte N a tio n a l B a n k ...........................
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 . ! ! !64
M e rc h a n ts N a tio n a l B a n k ................................
2
M idland N a tio n a l B a n k ........................................ 4 3
M in n e s o ta C o m m e rc ia l M e n ’ s A s s n . . . . . . . 4 2
M o sle r S a fe C o m p a n y ............................................. 23

C
C e n tra l N a tio n a l B a n k and T r u s t C o ......... 12
C e n tra l R e p u b lic C o m p a n y ...............................5 7
C h ase N a tio n a l B a n k ............................................ 6
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 ................................................................ 32
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 .................................................... 27
C o n tin e n ta l 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 f C o m m e r c e ............................ 5 7
N a tio n a l B a n k o f Sou th D a k o t a ........... .
45
N a tio n a l B a n k o f T u l s a .......................................4 6
N a tio n a l B a n k o f W a t e r l o o ...............................67
N a tio n a l C ash R e g is t e r C o m p a n y . . . ! . . 4 - 5
N a tio n a l R e s e r v e L ife In su ra n c e C o............ 3 9
N o r th w e s t S e c u rity N a tio n a l B a n k ............ 4 4

D a v e n p o rt, F . E ., and C o m p a n y .....................56
D e L u x e C h eck P r in te r s, In c .............................. 48
D e s M oin e s B u ild in g -L o a n and S a v in g s
A s s o c ia tio n .............................................................. 3 4
D r o v e r s N a tio n a l B a n k ......................................31
E

O
O m a h a N a tio n a l B a n k ...........................................21

1*
P u b lic N a tio n a l B a n k and T r u s t C o ............60

R
R e c o rd a k C o rp o ra tio n

................................. 3 6 -3 7

E llin o r V illa g e ......................................................... 30
E m a r in e s
..................................................................... 65
E n te r tr a in m e n t, In c ................................................. 26

S c a rb o ro u g h and C o m p a n y ................ 3 8 -5 2 -6 0
S to c k Y a r d s N a tio n a l B a n k — O m a h a . . . . 53

F a r m e r s L ife In su ra n c e C o m p a n y . .............. 39
F ir s t o f Io w a C o r p o r a tio n ................................... 35
F ir s t N a tio n a l B a n k — C h ic a g o ....................... 14
F ir s t N a tio n a l B a n k — L in c o l n ..........................5 6
F ir s t N a tio n a l B a n k — O m a h a ..........................55
F ir s t N a tio n a l B a n k and T r u s t C o m p a n y
— T u ls a ..................................................................... 49
F ir s t St. Josep h S to c k Y a r d s B a n k —
Sou th St. J o s e p h ........................
52
F ir s t W is c o n s in N a tio n a l B a n k .....................29

T o o t le -L a c y N a tio n a l B a n k ....................... 5 4 -5 5

II
H u m m e r, W a y n e , and C o m p a n y .....................35

Northwestern Banker, April, 1952

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Federal Reserve Bank of St. Louis

U n ite d S ta te s C h eck B o o k C o m p a n y ..........62
U n ited S ta te s N a tio n a l B a n k — O m a h a . .. 50
V

V a lle y B a n k an d T r u s t C o m p a n y .................. 63

W
W a lt e r s , C h a rle s E ., C o m p a n y ................. .. . .57
W a t e r lo o S a v in g s B a n k ......................................65

C O N V E N T IO N S
April 20-22, A .B .A . Spring Council
Meeting, W hite Sulphur Springs,
W est Virginia, Greenbrier Hotel.
April 21-25, Nebraska Group Meetings,
Special Train, towns announced in
this issue.
May 6-9, Iowa Group Meetings, first
series (towns announced in this
issue).
May

7, Regional Meeting, Financial
Public Relations Association, Des
Moines, Hotel Savery.

May

7-9, Annual Meeting, Kansas
Bankers Association, Topeka.

May 9-10, Annual Meeting, North Da
kota Bankers Association, Bis
marck, Hotel Patterson.
May 12-14, Annual Meeting, Missouri
Bankers Association, St. Louis.
May 18-19-20, Annual Convention, In
dependent Bankers Association,
Minneapolis, Hotel Nicollet.
May 20-23, Iowa Group Meetings, sec
ond series (towns announced in
this issue).
May 23-24, Annual Convention South
Dakota B a n k e r s Association,
Mitchell, Hotel Lawler.
June 2-4, Annual Meeting, Illinois
Bankers Association, Hotel Sher
man, Chicago.
June 2-6, American Institute of Bank
ing, Houston, Rice Hotel.
June 6-7, Annual Convention, W y om
ing Bankers Association, Saratoga,
Saratoga Inn.
June 11-12, Annual Meeting, Minne
sota Bankers Association, St. Paul,
St. Paul Hotel.
June 15-28, Graduate School of Bank
ing, Rutgers.
June 16-18, Annual Meeting, W iscon
sin Bankers Association, Milwau
kee, Hotel Schroeder.
June 19-21, Annual Meeting, Montana
Bankers Association, Glacier Na
tional Park, Many Glacier Hotel.
July 28-August 9, School of Financial
Public Relations, Chicago, North
western University.
September 26-28, Association of Bank
W om en, Annual Convention, A t
lantic City, New Jersey.
September 28-October 1, Convention,
American
Bankers Association,
Atlantic City.
October 19-20-21-22, Annual Meeting,
Iowa Bankers Association, Des
Moines, Hotel Fort Des Moines.
October 20-23, Financial Public Rela
tions Association, Coronado Beach,
California, Coronado Hotel.
October 27-30, National Association of
Bank Auditors and Comptrollers,
Annual Convention, Milwaukee,
Hotel Schroeder.
November 10-11, Annual Convention,
Nebraska
Bankers
Association,
Lincoln, Hotel Cornhusker.
November 13-14, Mid-Continent A .B .A .
Trust Conference, Dallas, A d o l
phus Hotel.
November 30-December 5, Investment
Bankers Association, Annual Con
vention, Hollywood, F l o r i d a ,
Hollywood Beach Hotel.

Too Natural
Nothing annoys a woman so much
as having her friends drop in to find
her house looking like it usually does.
It’s Really Bad
Patrick Henry thought “ taxation
without representation” was bad. He
should see it with representation!
No Trouble at All
Politician: My boy said he’d like a
job in your department.
Officer: What can he do?
Politician: Nothing.
Officer: Good! That simplifies mat
ters. We won’t have to break him in.
Two W ay Deal
The man who complains that a dol
lar won’t go as far as it used to won’t
go nearly as far for the dollar as he
used to.
Observation Post
The average leg has lengthened 1%
inches in 30 years, say an authority.
Maybe it is due to the leg forever be
ing pulled.—Barnstable Patriot. There
would be fewer arguments if we tried
to determine what’s right instead of
who’s right.— Taunton Gazette. If cars
are built any lower, how can they run
over pedestrians?—WashingtonTimesHerald. Told that mummies eight feet
tall have been exhumed in the west, a
basketball fan figures the boys struck
a prehistoric Y.M.C.A. — New Haven
Register. Business will be better when
shoe soles wear out faster than trouser
seats.— The Houghton Line.
Luck is something that usually
comes to a fellow who has been work
ing hard for years making a place to
receive it.—Woonsocket Call. Music
being used to relax surgery patients
will probably be referred to as opening
numbers.—Pathfinder. Urey, the nu
clear wiz, thinks life is possible on
other planets. Given a little peace and
quiet, it would be on this.—Cedar Rap
ids Gazette. We’re in favor of the gov
ernment balancing its budget, but we
don’t exactly approve of it being done
while unbalancing ours.—Washington
Times-Herald.

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Federal Reserve Bank of St. Louis

Spring Conipltunt
A cold is both positive and negative;
sometimes the eyes have it and some
times the nose.
Priceless Advice
A clergyman met one of his miserly
parishioners during the week and as
the two passed the time of day the
minister asked the fellow how he had
liked the services on the preceding
Sunday. The stingy parishioner re
marked that he thought the parson
had been far below his usual form in
preaching, that his wife thought the
organist rather erratic in his playing,
that his son didn’t care for the compo
sitions sung by the choir and that his
daughter thought the ventilation very
bad.
He summed it up by saying that the
whole family thought the service
much too long.
After a moment of silence following
this blunt appraisal, the good parson
replied, “Yes, all that might be true—
but you’ll have to admit it was worth
your dime.”
Food for Thought
The darkest hour in any man’s life
is when he sits down to plan how to
get money without earning it.—Hor
ace Greeley.
My reading of history convinces me
that most bad government results
from too much government.—Thomas
Jefferson.
Too many people are thinking of se
curity instead of opportunity. They
seem more afraid of life than of death.
—James F. Byrnes.
Mature
It was long after midnight. The
author looked haggard and worn. He
had been working on his novel.
“ Darling,” called his wife, “are you
coming to bed?”
“No,” muttered the author. “ I’ve
got the pretty girl in the clutches of
the villain and I want to get her out.”
“How old is the girl?” asked his
wife.
“ Twenty-two,” informed the writer.
“Then put out the lights and come
to bed,” snapped the wife. “ She’s old
enough to take care of herself.”

A Kremlin Gremlin
One big drawback in overcoming ig
norance is that ignorance does not
recognize itself and for that reason
isn’t interested in learning.
Practice
The duffer took a death-grip on his
five iron, and with a mighty swing suc
ceeded in tearing up a large chunk of
turf which traveled farther than the
ball. Walking forward, he picked up
the piece of turf, and with a scared
look asked the caddy for advice:
“What shall I do with this?”
The caddy regarded him with a
stony stare and replied, “ If I were you,
I’d take it home to practice on.”
It’s Just Your Attitude
“Good heavens,” said a guest at a
cocktail party, “look at that long and
lanky girl over there.”
“ Hush,” whispered his host. “ She
used to be long and lanky, but she just
inherited a million bucks; now she’s
tall and stately!”
Ignorant
The long dreamed of trip had come
true and here he was sitting in a fa
mous restaurant in Paris. He puzzled
over the menu, wondering what those
odd terms would look like served on
a plate.
“ Servez-moi . . . Je desire,” he stam
mered, trying to recall some of the
phrases he had been learning.
“Pardon me,” said the waiter, hop
ing to relieve the situation, “but I do
not speak French.”
“Well, don’t just stand there,”
snapped the tourist. “ Send me some
one who does.”
Recom pense
An Englishman who came to the
United States after World War II took
out citizenship papers. He was visited
by an English relative who repri
manded him for becoming an Ameri
can citizen.
“What have you got to gain?” he
demanded.
“Well, for one thing/” said the new
citizen, “ I win the American Revolu
tion.”
Northwestern Banker, April, 1952

Can a Tra.stet» in
t'antinue Hu.sine.ss O perations?
Th is and Other Questions Are
Answered by Our Legal Department

A cabinet factory came to owe a
bank, as well as others, considerable
sums of money. It was unable to pay
them and went into bankruptcy. A
director of another bank was ap
pointed its bankruptcy trustee. Did
such appointment, without more, em
power the trustee to continue the cab
inet factory in business or was he
obliged to liquidate it promptly?

A bankruptcy trustee is not empow
ered merely by virtue of his appoint
ment to conduct the business of the
bankrupt. The continued operation
of a bankrupt’s business is a matter
within the sound discretion of the
court having jurisdiction over its af
fairs. If such court does not order the
bankrupt’s business continued, the
trustee is under legal obligation to
liquidate it promptly.

An Iowa banker left his property
to his wife for life, with full right to
sell, mortgage, and deal with it for
her interest. At her death it was to
be divided equally between their chil
dren and his children by a former mar
riage. Subsequently, the widow con
veyed a valuable farm which was a
part of the estate equally to their chil
dren. She had plenty of money and
there was nothing in her interest re
quiring the transfer. Actually, the
conveyance was made to cut out the
decedent’s children by his former
marriage. Was the deed a valid one?

No. The life tenant had very broad
powers in dealing with the property.
As long as she exercised discretion in
line with her interest her actions were
final and conclusive. A necessary ele
ment, however, was that she act in
good faith. Obviously, the deed in
question was not made in good faith
because it was made to defeat the pur
pose of the testator and to annul rights
of other remainder men. In view of
this the conveyance was not one that
she could make and it therefore was
not valid.
Northwestern Banker, April, 1952

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Federal Reserve Bank of St. Louis

an operating company for 15 years.
During the lifetime of the owner it
had come to be his practice to let this
company operate the institution. The
lease was duly approved by the appro
priate court after full hearing and
notice to all concerned. In 1950 the
trust ended because of the death of the
widow and son. Was the lease good
for the remaining five years?

piaiaiBitY

LEGAL DEPARTMENT
of the
NORTHWESTERN BANKER

. A Nebraska bank director entered
into a long-term agreement with a sell
ing organization whereby it agreed to
market certain toilet articles manufac
tured by him. The selling organiza
tion did not live up to the agreement
and the bank director sued to have the
contract declared forfeited. After fil
ing suit he accepted certain benefits
under the contract. Did be thereby
waive any right he might have had to
declare the contract rescinded?

Yes. The Nebraska Supreme Court
has so held in a recent decision involv
ing analogous facts pointing out that
the rule is thoroughly established that
an assertion of a recision is nullified
by the subsequent acceptance of bene
fits growing out of a contract claimed
to have been rescinded. In so holding
the court cited various authorities as
precedents, including decisions from
Wyoming and Arkansas.

The owner of a South Dakota ho
tel named his banker trustee of his
estate. The trustee had broad powers
and the trust was to exist during the
lives of the hotel man’s wife and son.
In 1940 the trustee leased the hotel to

Yes, according to a recent analogous
decision by the South Dakota Supreme
Court in which various decisions, in
cluding one from Wisconsin, are cited
in support of its position. The court
in so holding said that it recognized
a conflict in the authorities but be
lieved the better rule to be the one
which permits trustees to make leases
beyond the periods of their trusts if
in so doing they give effect to the
scheme and intent of the trustor. Such
rule is held to be applicable in this
instance.

Brown bought some wheat from
Black, giving him a check therefor
concurrent with the delivery. Both
parties intended it to be a so-called
cash transaction. The check did not
clear, due to insufficient funds. Sev
eral days later Brown received funds
and the check was paid. A little later
Brown was declared bankrupt and his
trustee sought to recover the amount
of the check from Black, claiming that
in its payment he had, under the law,
received a preference. Was the trans
action of such a type that the trustee
should prevail?

No. If Black had extended credit to
Brown and had received a preferential
payment, the trustee would have been
in a position to effect a recovery. This,
however, he did not do, as the trans
action was a cash one even though
a check was used. The fact that the
check was not paid when first pre
sented did not change the original in
tent of the parties that there should
be a cash sale and make it one in
which credit was extended.

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Headquarters: S T . L O U IS , 9th & Sidney Sta. • Offices in: N E W Y O R K , 103 Park A v e . , N. Y. City ♦ A T L A N T A , Western Union Bldg. • S A N F R A N C IS C O , Mechanics Institute Bldg.

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Federal Reserve Bank of St. Louis

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Federal Reserve Bank of St. Louis

FOUNDED 1868

Full text of The Northwestern Banker : April 1952, 57th Year, No. 777

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