Full text of The Northwestern Banker : April 1975, 82nd Year, No. 1339

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OBTHWESTERN
i&CIMÿV
APRIL
1975

IN THIS ISSUE:

Potential Deposit Growth

How to Comply with OSHA

Future of Credit Life

Lease Insurance and Banks

Ken Benda Heads Independent Bankers Association—

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

Page 51

...call the RoblemSolvets
at Marcharts National Bank: 1-800-332-5991.
Merchants National Bank

A BANKS OF IOWA’ BANK

C edar Rapids, Iowa 52401

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

Whyareiftyou making moremoney
ininternational banking?
Some banks are not in the business of in
ternational banking. Others are doing a little,
and still others are doing a good amount. But
many of these banks are not achieving their
full new business potential.
Perhaps that’s because international bank
ing can be confusing, complex and potentially
risky, what with foreign countries, foreign cus
toms, foreign languages and foreign currencies.
But when you weigh these factors against
the money to be made, international banking
can make a lot of sense. Especially when you
have the help of Chase. We can take much of
the confusion and unfamiliarity out of it for you,
and can also explain the risks involved. After
sixty years of doing business internationally
there’s little that’s foreign to us.

The First Step
Well help you uncover opportunities in
your own trading area. Are there large ethnic
population groups sending money overseas?
Or importers or exporters? If so, there are
international banking opportunities on your
doorstep. And there’s no reason not to go after
that business. For example, if you don’t offer
your own international payments and transfers
or letter of credit services, use ours. We ll
help you with the transactions and supply you
with the necessary forms, some imprinted with
your bank’s name. Turn those opportunities
into customers. Well do the work. You’ll get
all the credit and the profit potential.

Onward and Upward
As your business expands, well serve as
your backup for any service you don’t yet un
derstand or don’t want to do yourself, be it
collections, trade development, foreign ex
change or whatever. And we offer some unique
services too.
Like our new foreign draft service that
gets your drawing advices overseas almost
twice as fast as any other bank.
And we make it easy for you to interact
directly with our international experts through
our Contact Directory, which leads you to the
right person with the right answers.

Hither and Yon
When you want to expand beyond your
trading area, well help you establish an off
shore office, Edge Act subsidiary or even a
branch in another country. After all, we’ve had
a lot of experience. We established our first
overseas office over fifty years ago and now
have representation in over 2,000 locations in
98 countries and territories, including the first
American banking office in Moscow in over
fifty years.

And now a word for our
Relationship Manager
We can provide this kind of experienced
help no matter what stage of international
banking you’re at. And the key to it is our
Relationship Managers. They have helped over
2,200 of our domestic correspondents in vari
ous aspects of international banking and they
can help you, too.
Your Relationship Manager will be in con
tact with all levels of your bank, so he’ll better
understand your needs and make Chase’s ex
pertise work for you. He’ll suggest new busi
ness opportunities, put Chase specialists in
touch with your international people and make
sure that all operations go smoothly for you.
From helping you get the business, to ways to
handle it, to what to do with the money you
make. There’s no limit to what he can do for
you, because there’s no limit to the ways Chase
is willing to back hint up.
So call your Chase Relationship Manager
collect at (212) 552-3192. He’ll help you make

The new Chase Relationship Manager:
He can do more for you because were doing more for him.
Member FDIC

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Federal Reserve Bank of St. Louis

N o rth w e s te rn B anker, A p ril 1 9 75

Conventions
Calendar

Oldest Financial Journal Serving
The Central and Western States

for your April, 1975 reading
82nd Year

No. 1339

FEATURE ARTICLES

31
32
36
40
41
42
46
50
51
56

Mini Banks Operate in Kroger Stores
Inside Track for Potential Deposit Growth
Fiduciary Liability and the Pension Reform Act of 1974 —
R obert A . Carney
Will Regulators Remove Profit, Destroy Credit Life? —
Charles M. Spinning
FACTS - Not Fiction, Fantasy or Conjecture—Lewis H.
Gregg
Points for Banks To Remember to Comply with OSH A —
L. W. Duncan
Lease Insurance Influences IDR Bond Investors, Guaran
tees Corporate R ent—Jam es W. Fletcher
Crop Hail Industry’s 1974 Premiums Top $258 Million
Electronic Funds Tranfer Viewed by Independent
Bankers —Malcolm Freeland
Are You Ready for Disaster?—John M usatto
REGIONAL BANKING NEWS

Illinois News 63 83 Wyoming News
Chicago News 64 84 Idaho News
Minnesota News 69 84 Washington News
Twin City News 72 85 Oregon News
South Dakota News 78 85 U tah News
North Dakota News 79 87 Nebraska News
Colorado News 80 98 Omaha News
Montana News 82 111 Iowa News
120 Des Moines News
OTHER FEATURES

63
87
123

Illinois Bankers Convention Program
Nebraska Bankers Convention Program
Bankers Market Place
NORTHWESTERN BANKER

3 0 6 1 5th Street, D e s M o in e s, Io w a 5 0 3 0 9 . Phon e 5 1 5 — 2 4 4 - 8 1 6 3

Editor

Publisher
M a lc o lm

K. Free land

Advertising Assistant
S h e rri N ie lse n

Field Representative
A I K e rb e l

Ben H alle r, Jr.

Circulation Department
De e T im m e rm a n

Field Representative
Paul M a st e rs

Associate Editor
Linda L. Larson

Auditor
B e rtha S o d e rq u ist

Field Representative
G le n H ic ks

No. 1339. N orthw estern B anker is p u b lish ed m onthly by th e N orthw estern B anker C om pany, 306
F ifte en th Sttreet, Des M oines, Iow a 5 0309. Subscription $1.00 p e r copy, $10 p er year. Second class
postage p a id a t Des M oines and a t ad d itio n al m ailing office. A ddress all m ail (subscriptions, change of
address Form 35 7 9 , m anuscripts, m ail items) to above address.

Digitized
FRASER
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rth w
estern B anker, A p ril 1 9 75
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Federal Reserve Bank of St. Louis

Apr. 7-9—ABA National Instalment Credit
Conference, Conrad Hilton Hotel, Chi
cago.
May 4-6—Illinois Bankers Association An
nual Convention, Palmer House, Chi
cago.
May 4-6—Nebraska Bankers Association
Annual Convention, Omaha Hilton,
Omaha.
May 7-9—North Dakota Bankers Associa
tion Annual Convention, Grand Forks.
May 11-14— ABA National Operations &
Automation Conference, Americana Ho
tel, Bal Harbour.
May 15-16—South Dakota Bankers Asso
ciation Annual Convention, Holiday Inn,
Aberdeen.
May 15-17— NABW Northwestern Regional
Conference, Washington Plaza Hotel,
SciittlCt
May 18-20—BAI 26th Northern Regional
Convention, Galt House Hotel, Louis
ville, Ky.
May 23-25—NABW Western and Rocky
Mountain Regional Conference, St.
Francis Hotel, San Francisco.
May 25-30— BMA Essentials of Bank Mar
keting Course, University of Colorado,
Boulder.
May 25-June 6— BMA School of Bank
Marketing, University of Colorado, Boul
der.
June 4-6—NABW Lake, Midwest and
Central Regional Conference, Holiday
Inn, Bismarck, N. D.
June 4-8— Colorado Bankers Association
Annual Convention, The Broadmoor,
Colorado Springs.
June 8-10—Nevada Bankers Association
Annual Convention, Sahara Tahoe Hotel,
Lake Tahoe.
June 9-11— Minnesota Bankers Association
Annual Convention, Arena-Auditorium,
Duluth.
June 11-13—Wyoming Bankers Association
Annual Convention, Jackson Lake Lodge,
Moran.
June 15-18— Idaho Bankers Association An
nual Convention, Sun Valley Lodge, Sun
Valley.
June 18-21—Utah Bankers Association An
nual Convention, Main Lodge, Sun Val
ley.
June 19-20—Oregon Bankers Association
Annual Convention, Sunriver Lodge, Sunriver.
June 19-21—Montana Bankers Association
Annual Convention, Jackson Lake Lodge,
Moran.
June 22-24—Washington Bankers Associa
tion Annual Convention, Tyee Motor Inn,
Olympia.
August—IBAA Senior Bank Officer Semi
nar, Harvard University.
Sep. 29-Oct. 2—BMA Annual Convention,
Las Vegas Hilton, Las Vegas.
October—IBAA Junior Bank Officer Semi
nar, Ball State University, Muncie, Ind.
Oct. 4-8— ABA 101st Annual Convention,
New York.
Oct. 17-18—Association of Registered Bank
Holding Companies Fall Meeting, Kahala
Hilton Hotel, Honolulu.
Oct. 26-29—Iowa Bankers Association 89th
Annual Convention, Hotel Fort Des
Moines, Des Moines.
Oct. 26-29—BAI 51st Annual Convention,
Marriott Motor Hotel, Atlanta.
Nov. 10-13—Robert Morris Associates 60th
Fall Conference, Hyatt Regency, Atlanta.

Oops! His orders are pouring in but it
will take a smooth cash flow to cover his
new customers.
He’ll need to dip-in to more warehouse
space so he can mix in some more
inventory.
You tell him again it’s still time to call
Talcott in Minneapolis.
Our Business Finance Division is primed
to give him full flexibility in cash
support.
We can be his helper and get him cash to
pay his bills and restock.
As a banker you know Talcott’s
Minneapolis experts can come to his
aid with financing.
So remember, before he takes the next
step, tell him it’s time to call Talcott.
For more information contact James Talcott, Inc.,
Business Finance Division, 820 Northwestern Bank
Building, Minneapolis, Minnesota 55402.
(612) 339-7711.

Tell him to call Talcott.
He’s laying it on thick.
His business has a great new product,
and he’s spreading his sales message in
every comer of his market.
But, it’ll cost him plenty of green.
And his receivables tend to be sticky,
his bank balance is thin, and he could
end up with an empty bucket. So he’s
come to the bank for more cash than you
can supply.
You tell him it’s time to call Talcott in
Minneapolis.
We hate to give the brush to customers
whose financing needs are stiff. Our
Business Finance Division might custom
blend a loan for him.
We’re experts at stirring up collateral
he didn’t think he had.

Still tell him to call Talcott.

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

Melamed Says CFTC Must Maintain
Exclusive Regulation of Futures Markets
EO Melamed, chairman of the International Monetary Market of
the Chicago Mercantile Exchange, re
cently warned that it is imperative the
new Commodities Futures Trading
Commission (CFTC) maintain exclu
sive jurisdiction over the nation’s fu
tures markets.
“No other method of regulation over
this complex industry would make
sense,” he declared, speaking to legal
experts, brokerage firm executives and
businessmen attending a Conference
on the CFTC Act of 1974.
“Any form of dual regulation is
bound to have severe adverse effects,
not only on the business of futures, but
on the primary industry it serves —
the agricultural complex of the United
States.
Noting that it has been an increasing
pattern for the states to pass legisla
tion (for revenue raising purposes)
overlapping that of the federal govern
ment, he commented: “Clearly, if any
thing can single-handedly disrupt and
cause the demise of this industry, it is

this very type of burdensome and
costly multiplicity of regulation.”
The I.M.M. chairman said the dual
regulation question is one of two “gray
areas” concerning the CFTC, which
is scheduled to go into effect April
23, 1975.
A second hazy spot concerns the
regulation of gold and silver not traded
on futures markets. Mr. Melamed said.
Under the CFTC Act, the com
mission will assume jurisdiction over
these two commodities, which today
— at least in markets other than
futures — are governed by the
Securities and Exchange Commission.
Still, the SEC seeks to regulate socalled “leverage contracts” and there
fore would be ministering to the same
area as the CFTC under its Section
217.
“My own belief is that Congress
intended Sec. 217 to confer exclusive
jurisdiction to the CFTC in regard
to leverage cash contracts of gold and
silver,” he said.
Mr. Melamed believes that the

treatment of gold and silver under the
CFTC will be “no different than
another metal or comodity” and “at
the moment . . . this is consistent with
our overall national policy.
“From past performance, however,
I would guess that it was an inadvertant occurrence,” he said, as
“consistency is not the long suit of
government.”
In addition to the various criss
cross of legislation between the
federal and state governments, there
has been additional regulation by
government agencies, such as the
Federal Reserve Board, the Comp
troller of the Currency, the Federal
Deposit Insurance Corporation, the
Federal Trade Commission, the Justice
Department, the Postal Inspection
Service and the SEC, he pointed out.
“We can, thus, anticipate a host
of regulations of every kind and form
which will apply to sales of gold and
probably silver in the coming months
of 1975,” Mr. Melamed said. He
declined to speculate on what kind of
regulation will be forthcoming but
he inferred there will probably be more
“inevitable contradiction and confliction.”

service

in the tradition of excellence.
All credit insurance programs are not created equal! So in order for us to continue
to grow, we know we ha^e to perform. And we do. We provide service.
Now, “service” is a nice word to banty around — it sounds great.
But when we say service, we mean service . . . and we’d like you to know how good
our service to you really can be. In the tradition of a Mutual of Omaha Company.
After all, a credit insurance program is only as good as the servicing behind it.
So if your credit insurance program isn’t doing all you thought it would, write us.
Or call us. Collect. Today.

St. P o u lf)
Hospital & Casualty

4 Mutual nf Omaha Company

Dodge at 33rd Street • Omaha, NB 68131 • (402) 342-7600, Ext. 2910
Home Office: P.O. Box 1711 • St. Paul, MN 55111 • (612) 854-4515
N o rth
estern B an ker, A p ril 1 9 7 5
Digitized
forwFRASER
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

O■

Working together
It's the way we do business best: your
people getting to know ours, learning about
our expertise, building trust. It simplifies
business. And the world of fixed income
securities — municipals, corporates,
governments — is a complex one. A big
reason we're a leader is because our people
are knowledgeable experts — some of the
best in the business. Men who believe in
straight talk. And that's the straight of it. If
you'd like to know more about us, call
our man for your state, or ask him to send
you "A Little Information for Investors."

Jim Howard, Vice President,
Our man for Iowa and Nebraska

HIBBARD, O'CONNOR & WEEKS, INC
INVESTMENT BANKERS
Tenth Floor, 1300 Main Street, Houston, Texas 77002
Phone: 713/224-9664 Toll-Free 1-800-231-3566
Houston
New York
Fort Lauderdale

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Federal Reserve Bank of St. Louis

N o rthw estern

Banker,

A pril

1975

A m erican Express
versus ortli nary
The m ost widely
accepted Travelers
Cheque in Am erica

R efunds during
bank hours

BANK
AMERICA

YES

FIRST
NATIONAL
CITY

YES

AMERICAN
EXPRESS

YES

BARCLAYS

YJLFL<Js

Brand o f
Travelers C heques

O n ly A m e r ic a n E xpress T ra v e le rs C h e q u e s p ro v id e y o u r c u s to m e rs e x tra servi|
American Express Company

“All Travelers Cheques
are not the same.”
N orthw estern

B anker, A pril

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

1975

Whatever other travelers cheques can do, we can
do better.
We’re the American Express Travelers Cheque.
We’re good at more places across America than any other
travelers cheque.
We re good at over 48,000* more restaurants.
We’re good at over 13,000* more hotels and motels.
We’re good at over 59,000* more service stations.
All of these facts are documented in the A.C.
Nielsen Company Survey, “A Report on the Leading
Travelers Cheques in America.” (If you’d like a free summary,
just send your name and address to Nielsen Summary, P.O.
Box 107, Bowling Green Station, New York, N.Y. 10004

Travelers Cheques
travelers cheques.
R efunds on
holidays

R efunds at
night

R efunds on
w eekends

YES

p ierg en cy re fu n d s o f u p to $ 1 0 0 a t n ig h t, o n w e e k t n d s a n d h o lid ay s.

{80 ■851

.0 ( ) 6

JIJ
Is I , „ __ „ ■ ■
>;aopo-ooQ 5*: <
and we’ll send you one.)
But where we’re better isn’t the only reason why
we’re better.
We’re the only Travelers Cheque that gives refunds

at night. And on weekends. And on holidays.To get a refund
during these times, all your customer has to do is pick up the
phone, call 800-221-7282 and report the loss.The American
Express Company can arrange for him to pick up an
“Emergency Refund”SM
of up to $100 at one of more than 1,450
conveniently located Holiday Inn
refund locations across America.
The American Express
Travelers Cheque. Because what ^OJVlERIQQJ^l
other travelers cheques can do,
we can do better.
* Figures projected from a sample selected and
questioned by A.C, Nielsen Co., in March 1971.
Northw estern

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

Banker,

A pril

1975

Bank Promotions and Changes
1 3 ROMOTIONS and other news an- tions divisions in the New York
nouncements have been made by Banking Group, while Mr. Roberts
the f o l l o w i n g is in charge of commercial lending to
banks:
a variety of commercial and industrial
Bank of Ameri companies. Mr. Long joined the bank
ca, San Francisco: in early 1972 as an assistant vice
George E. Kubin president and deputy director of the
has b e e n ap data processing center. Mr. Roberts
pointed vice presi joined the bank as a trainee in the
dent and manager national division in 1957, in 1961 was
of Bank of Ameri made an olficer, and in 1967 was
ca International named a vice president.
of Chicago, the
LaSalle National Bank, Chicago.
G. E. KUBIN
Edge Act interna The bank has announced the ex
tional banking subsidiary of Cali pansion of its board and the appoint
fornia’s Bank of America, Inc. Mr. ment of James J. Glasser as a director.
Kubin, assigned to international bank Mr. Glasser is president and chief
ing duties since joining the bank in operating officer of General American
1957, assumes the post after four years Transportation Corp. (GATX) and
with the bank’s former multinational has extensive legal and leasing ex
and now world banking division in Los perience.
Angeles where he was a vice president
Mercantile
Bancoporation,
St.
specializing in American investments Louis: Donald E. Lasater, chairman
for overseas companies.
and chief executive officer of Mer
First National City Bank, New cantile Bancoporation, Inc., and its
York: Charles E. Long and Donald lead bank, Mercantile Trust Co.,
M. Roberts have been named senior has been granted leaves of absence
vice presidents. Mr. Long heads the from his positions pending the out
checking and consumer credit opera- come of indictments for perjury.

Mr. Lasater was indicted recently
by a federal grand jury in Kansas City
on four counts of perjury. The grand
jury is investigating possible wrong
doing by the administration of Warren
E. Hearnes, former Missouri governor.
Harrison F. Coerver, vice chairman
of Mercantile Bancoporation and
president of Mercantile Trust, will
serve as chief executive olficer of
both corporations,
The bank also has announced the
following promotions: James E. Denny
and J. Robert Fitzsimmons, assistant
vice presidents; Martha S. Young,
accounting officer; Kenneth N. Berjer,
consumer credit officer; David A.
Pickerill, assistant cashier; Jane D.
Brown, assistant trust officer and Carol
Ann Brouse, assistant data processing
officer.
United Missouri Bank of Kansas
City: R. Crosby Kemper, chairman,
has announced the following changes:
Dan S. Spencer, Jr., head of the opera
tions department, was promoted to
executive vice president. He joined the
bank in 1969 after 15 years with
branches of the Kansas City Federal
Reserve Bank.
Five assistant vice presidents were

Continental Western teamwork
puts you
out in
front.

CONTINENTAL WESTERN INSURANCE COMPANY
Phone [515] 278-3000

CONTINENTAL WESTERN LIFE INSURANCE COMPANY
Phone (515) 278-3345

HOME
BUSINESS
AUTO
LIFE

N orthw estern

Banker,

H om e O ffices:
11201 Douglas Avenue (Interstates 35-80), Des Moines, Iowa 50322
D IVISION S OF CONTINENTAL W ESTERN INDUSTRIES, INC.

A pril

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Federal Reserve Bank of St. Louis

1975

Some of our
best customers
are other bankers
When financial experts need expert financial
advice, it’s no coincidence that so many come to
Bank of America. Our solidly established pro
fessional experience provides outstanding service
in every facet of correspondent banking. Service
that’s at your disposal around the clock and
around the world.
We’ll handle all your correspondent banking
needs; process your transit quickly; provide a
wide variety of securities services; offer advice
and counsel; and keep your customers as happy
with you as ours are with us.
So why not ask another banker about Bank
of America? Chances are, he’s already one of our
best customers. Then for more details, contact our
regional correspondent banking specialists at:
Bank of America Center, 555 California St., San
Francisco 94137 (415) 622-6142; or Bank of
America Tower Bldg., 555 South Flower St.,
Los Angeles 90071, (213) 683-3288.
B A N K o f AMERICA f

J J

C o rre sp o n d e n t B ank S e rv ice

BANK O F AMERICA NT&SA •MEMBER FDIC

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Federal Reserve Bank of St. Louis

promoted to vice president. They at
Lyman C. Bacon and Robert F
Henricksen. commercial loans: Thain
T. Anderson and Michael T. Fleming
new business, and Janet Sue Epperson
trust investment. Named assistan
vice presidents are Michael R. Harl
David C. Shindeldecker, Barbara A
Carlson. Rodney G. Horton, Phi Hi
D. Straight, Thomas J. Wood, III
Michael L. McAuley, Terry R. Post
M. M. Aslin, Robert L. Widlund, an<
W. David Van Aken.

FEDERAL

BJLL

STRAPS

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bands in case lots. Constructed of the finest of materials — extra
strong, high quality Kraft stock plus the finest Tapioca gum m ing —
they offer the maximum in performance and protection. Due to their
trouble-free history, they have become the favorites of tellers, pur
chasing agents, executives and others concerned w ith the gathering
and protection of currency.
M id-band design is available in Brown Kraft in the follow ing sizes
and w ith denominations printed in designating colors: $25 Orange,
$50 Light Blue, $100 Brown, $2 00 Black, $2 50 Dark Green, $3 00
Light Green, $5 00 Red, $1,000 Dark Blue, $ 2 ,0 0 0 Orange, $5 ,0 0 0
Purple, Blanks —(No Denomination), Brown Kraft.
Other fine "Steel-Strong" products include Coin Wrappers, Colored
Bill Straps, Pre-Banded Bill Straps, Banding Straps, Shipping Tags,
Lead Seals, Seal Presses, Coin Counters, Coin Packaging Trays, Post
Currency Racks, Coin Storage Trays and Tellers' Moisteners.
For Details on "S te e l-S tro n g " Products Call Your Dealer or Send
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M O N E Y THE

N orthw estern B a n k e r , A p r i l 1 9 7 5

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Federal Reserve Bank of St. Louis

FI NEST

" S T E E L - S T R ON G

Commercial Lending School
Scheduled for April 27
More than 100 bankers from acros
the country will attend the first o
two resident sessions for the grad
uating class of Fall, 1975, of the Na
tional Commercial Lending Graduati
School.
The session will be held Apri
27 — May 2 at the Oklahoma Cente
for Continuing Education, University
of Oklahoma, Norman.
A. Robert Abboud. chairman o
the American Bankers Association’
(ABA) commercial lending division
which sponsors the school, explainer
the school’s curricular structure. "The
school is designed not only to provide
the students with the latest manage
ment methods and analytic tools foi
their credit-granting task but also te
stimulate continued professional de
velopment,” he said.
Mr. Abboud, who is also deputy
chairman of the board of The Firs
National Bank of Chicago, saic
the graduate school is oriented te
experienced bank commercial lending
officers and offers a manageria
perspective of lending to business
and industry.
Master Charge Domestic
Volume Up 25.5%
Domestic dollar volume on the
Master Charge card for the year 197^
reached on all-time record high o
$9.88-billion, an increase of 25.5%
over 1973 results, according tc
Interbank Card Association, license
of the Master Charge card.
Retail sales volume increased 24.3%
to $8.67-billion and cash advance
volume 35.3% to $ 1.2 1-billion.
Outstandings for the year endec
December 31 were $4.81-billion uf
27.7% from the $3.77-billion reporter
at the end of 1973. The average
outstanding balance per active account
was $352.74, up I 1.9% from $315.27

“Sometimes I send Daisies, or Tulips.
Then again, Violets seem just right.
These are just a few of my
favorite flowers depicted in
DeLuxe Check Printers’
Springtime Series. So, thanks
to my banker, I can use more
than money to pay my bills,
I can use Dogwood in bloom.
Springtime is just one of a

MAHy W
sOjs » .

series of Distinctive Checks
from DeLuxe. Checks that let your
customers express their per
sonality in flowers. Americana,
10l
wildlife and more. It’s their
choice. Ask your DeLuxe repre
sentative. He’ll help you
display and promote colorful
Distinctive Checks from DeLuxe.
“I’m glad my banker did.”

CHECK PRINTERS, INC.

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Federal Reserve Bank of St. Louis

N orthw estern

Ban ker, A p ril

1975

Stults Says Inflation and Recession
Are Not Causes of Economic Woes
and recession are not
I NFLATION
the causes of economic problems

but are only “by
products resulting
from the lack of
understanding of
how our free en
terprise s y s t e m
works,” said Al
len
D. Stults,
chairman, Ameri
can N a t i o n a l
Bank & Trust Co.,
STULTS
C h i c a g o . Mr.
Stults was speaking before an Ameri
can Legion convention honoring In
dianapolis banker Francis Polin.
The former president of the Ameri
can Bankers Association said the low
level of economic literacy of the gen
eral public as well as among elected
representatives reflects in actions which
are detrimental to the long range best
interest of the country.
“There is little understanding and
considerable misconception of cap
italism, or free enterprise system,

N o rthw estern

Banker, A pril

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Federal Reserve Bank of St. Louis

1975

edge by continual clarification and
dissemination of economic truth and
fact,” he said. “It is only in this man
ner that the by-products of our
economic system can be kept in
balance.”

and the role of profits in making the
system function for the benefit of
society as a whole,” he commented.
“This results in well meant but mis BMA Publishes
guided criticisms, recommendations Suppliers Guide
and actions.”
The Bank Marketing Association’s
“Government involvement in any Information Services Department has
segment of business will always be just released a new publication, “The
detrimental,” he said. “The evidence Bank Marketers’ Guide to Suppliers
is ample and documentation ir and Services.” The directory lists
refutable. Our agricultural and trans hundreds of sources able to help banks
portation industries, our postal system in their varied marketing activities.
all give sad testimony to this fact.
Tn response to frequent requests
Further verification will be seen when by member banks, BMA’s Informa
we assess government’s intervention tion Center has for the first time
in our energy industries.”
condensed this material into a compact
“The rugged American individual 57-page publication. All listings pre
ism demonstrated by people like Fran sented in the new directory have been
Polen is essential to the understanding compiled, checked and updated.
and development of our economic
“The Bank Marketers’ Guide to
system. Unfortunately, we do not and Suppliers and Services” is available
will not experience that individualism to BMA members for $7; non
and, therefore, a good general knowl members, $12. Requests for this publi
edge of economics is not prevelant.
cation should be directed to Order
“Recognition of this reality places Department, Bank Marketing Associa
an obligation on the business com tion, 309 West Washington Street,
munity to discharge economic knowl Chicago, 111. 60606.

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Federal Reserve Bank of St. Louis

YOUR PERSONAL BANKING NEWSLETTER
reflects the quality of your bank, your staff, and
your personal banking services. I t’s interesting,
fresh, colorful and helpful . . . the cover of this bro
chure was the cover on our first issue.
YOUR PERSONAL BANKING NEWSLETTER
will enable your customers and prospective cus
tomers to become more aware and adept at hand
ling their financial affairs, through the marketing
of your bank services in a warm easy-to-digest
editorial tone comparable to the welcome, sincer
ity and helpfulness one expects from Personal
Bankers. We want your customers to feel your bank
recognizes and appreciates them by communicating

with them on a designed, regular, quarterly basis.
And there’s more. We want your customers to feel
they know their Personal Bankers! Each issue enables
your bank to feature a member of your Personal
Banking team. And you can use the newsletter as a
training tool for staff and departmental meetings . . .
to sell and cross-sell specific bank services.
Personal Banking isn’t new . . . but it’s a sound
banking philosophy. A way of banking involving
bank management, staff and customers. The key is
communications. YOUR PERSONAL BANKING
NEWSLETTER compliments an active marketing
program.
4*

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ASK

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TAKE ACTION
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your bank’s services
What’s the investment?
Subscription to YOUR PERSONAL BANKING NEWSLETTER includes exclusive use in your city,
full color printing and full personalization . . . there’s no reference to the publishing company. It’s
your bank’s newsletter. Page 4 features your Personal Banker, name and title, and your personally
written message . . . selling savings, time CD’s, checking accounts, special happenings, premium pro
motions, new services, money management ideas, or whatever you prefer.
YOUR PERSONAL BANKING NEWSLETTER may be distributed as a statement stuffer or on a direct
mail basis. Our suggestion is that we handle it by direct mail to your customers on a quarterly basis.

Base Quarterly
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price per customer

Customer Subscriptions
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of copies/issue

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19 4

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254
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THERE’S NO ADDITIONAL COST for your Personal Banker photo, name, title and your personally
written marketing message on page 4. The art work, graphics and layout are a part of the newsletter.
We suggest that you write a fresh marketing message and (if you want to) change Personal Bankers on
each issue . . . no additional cost. The Personal Banker concept doesn’t cost more. It pays! And the
publishing company isn’t referred to in the newsletter. The reason: it’s your bank’s newsletter.
DIRECT MAIL SERVICE is available. If your bank provides mailing labels in zip code order, cost is
only 24 per newsletter for affixing the labels, sorting, tying and delivering to the post office, plus ac
tual postage. If you prefer the direct mail service to include production of the mailing labels and
handling and mailing, the quarterly rate is 4 4 per newsletter, plus actual postage. Initial set up cost for
processing names, addresses and zip codes is determined by the number processed: 8 4 each for 10,000
customers or more; 94 each for 5,000 to 10,000; lOqf each if less than 5,000 customers. Subsequent
additions or changes are 104 each; deletions 64 each.

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PERSONAL BANKER

Don Jordahl
Publisher
HELLO! I'm the publisher of YOUR PERSONAL BANKING NEWSLETTER. I know
the value of marketing and communications in the banking business...........I've been a
banker since 1960. Most recently I was Senior Vice President, Marketing Officer and a
Director of a Brenton Bank in Des Moines. I'm a graduate of Iowa State and the Wis
consin Graduate School of Banking. I've enjoyed teaching American Institute of Bank
ing classes plus serving as president of the Des Moines AIB Chapter.
Personal Banking Communications, Inc., is a new company. We incorporated on
January 29, 1975. To assist in publishing our newsletter, I enjoy a professional associa
tion with Creative Services, Inc., a communications and specialized publishing company
supported by a professional staff of 6 editors and 3 artists. Their clients include Borden
Chemical, Massey-Ferguson, DeKalb, Monsanto and the Iowa Development Commission.
As a subscribing bank, YOUR PERSONAL BANKING NEWSLETTER is your bank's
newsletter. It reflects your bank. Your picture or the picture of one of your associates
would be featured above. You're encouraged to write your own marketing message
for this space . . . putting the marketing spotlight where you want it.

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C|T Y ______________ ________ STATE __________ ZIP

Mail Card for FREE COPIES of
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r sm
M

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IOWA

B USI NE SS REPLY MAIL
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POSTAGE WILL BE PAID BY
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PERSONAL BANKING COMMUNICATIONS, INC.
P. O. BOX 2701
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Federal Reserve Bank of St. Louis

Corporate News
ROMOTIONS and other an
P
nouncements have been made
by the following business firms:

Mosier, Hamilton, Ohio: Loren R.
Watts has been appointed vice presi
dent, field operat i o n s of this
A m erican-S tand a r d Company.
Mr. Watts came
to the company
from Vendo Com
pany in Kansas
City where he was
vice
president,
corporate s a l e s
L. R. WATTS
and marketing. In
his position Mr. Watts will direct all
domestic field sales, installation and
service operations as well as a number
of important: company support activi
ties at the Hamilton headquarters.

Russell have been named executive
vice presidents of NBT, which ad
ministers the U. S. BankAmericard
program. Each will assume executive
responsibility, under a new corporate
structure, for three of the company’s
six divisions and will report to D. W.
Hock, president.
Mr. Katz will be responsible for
the law, international and finance divi
sions; Mr. Russell will be responsible
for the operations, development and
marketing divisions.
David A. Wagman, vice president,
has been named to replace Mr. Katz
as head of the law division and general
counsel. David A. Huemer, vice presi
dent, will assume Mr. Russell’s pre
vious responsibilities as head of the
operations division.
Executive Vice President John A.
Dillon will have responsibility for
acquisition of new members, in
dustry relations and special projects.

Central States Health & Life
Co., Omaha, Nebr.: The company has
announced the following promotions to
officer status: Leo B. Weckerlin,
assistant vice president and manager
of agency administration; Richard
A. Onken, assistant secretary and
manager of systems, and William
Michael Kizer, assistant treasurer
and manager of corporate accounting.
Credit Systems, Inc., St. Louis:
Michael W. Gegen, vice president of
the First National Bank of Kansas
City, has been elected a director of
National BankAmericard, San Fran
Credit Systems, the operational center
for Master Charge credit card in the cisco: Bennett R. Katz and Charles T.
midwest.
Docutel Corporation, Irving, lex.:
George Briggs has been elected a
director replacing James T. Callier,
James Talcott, Inc., New York:
Jr., who resigned to join McKinsey &
James L. Tonius has been elected
Company. Mr. Briggs is senior vice
a vice president of the business
> president and manager of the mar
finance
division. He joined the com
keting planning division of Seattle First
pany
in
1965 and was operations man
National Bank.
ager of the business finance division’s
Financial Insurance Service, Inc.,
Los Angeles district office.
B. R. KATZ
C T. RUSSELL
Des Plaines, III.: Wm. Chris Eickhof,
Jr., has b e e n
elected president.
He had been ex
ecutive vice presi
dent and director
since the firm’s in
ception in 1969.
During the past
six years, he has
been charged with
underwriting op
erations as well
as claims supervision. Mr. Eickhof,
> former owner of the Columbus, Ohio,
insurance agency was with Travelers
Indemnity Co. earlier in his career, at
. the Richmond, Va.; Chicago and Okla
homa City branches.
►
i
Kirchner, Moore and Company,
We're 57 miles from Tucson and12 miles from Nogales. That puts
you right in the middle of beautiful Rio Rico's 60,000 acres...atop
Denver: Robert M. Kirchner, founder
a mountain.
of the company, has been named hon
Every guest room is decorated with a panoramic view. The food
orary chairman of this municipal bond
is a little American, a little Mexican and a lot of deliciousness. Real
firm’s board. Taking his place as
Cowboys will lead you to our riding stables.
And you’ll have our 9 hole
'■'* chairman is Ronald L. Moore who has
golf course, heated swimming
shared the board chairmanship with
pool, tennis, shuffleboard, and a
Mr. Kirchner for the past several
big, friendly cocktail lounge for
socializing. Oh yes, you'll also
4
years.
have the charm and. shopping
MoAmCo Corp., Minneapolis: Mac
buys of Mexico at your doorstep.
D. Hoy, 58, has been elected president,
Were one resort that really
replacing Robert T. Wienert, 44, who
b o rd e rs . . . on the fantastic!
A Sun Country Resort
resigned. My Hoy founded and was
Atop a mountain in Southeastern Arizona. For information and
president of Nantucket Leasing Co.
reservations, telephone: Outside of Florida, TOLL FREE 800-327-6862.
T O I I F R F F R 0 0 -4 3 2 -0 2 3 7 Ir
in Minnetonka, Minn.

Golf, tennis,
and a lot of horseplay!

In H n r l H a

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Federal Reserve Bank of St. Louis

N o rthw estern

Banker,

April

1975

\bur customers can save

up to $48 in May
with the
FIRSTNATIONALCITY
TRAVELERSCHECKS
UNUSUAL OFFER

N o rthw estern

Banker,

A pril

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Federal Reserve Bank of St. Louis

1975

YOUR CUSTOMERS SAVE
AND YOU RECEIVE YOUR FULL REGULAR COMMISSION
From May 1 through May 31,1975 your customers can buy
up to $5000 worth of First National City Travelers Checks
for a fee of only $2.

The Big New First National City Travelers Checks
National Advertising Campaign.
First National City Travelers Checks will be spreading the word to support your sales efforts
with the largest Unusual Offer consumer advertising campaign ever.

IN NATIONAL MAGAZINES

— Playboy— Ebony—
U.S. News & World Report— Newsweek—
Cosmopolitan— Essence— Modern Bride— Travel

Money— Southern Living— Golf Digest
—Heol
People— Esquire—
Sunday Newspaper Supplements.
A total readership of over 175,000,000.

Plus,The New Excitement: For The First Time, A Hard Selling
Commercial Will Be Seen On NETWORK TELEVISION
Promoting The Unusual Offer
NBA Basketball— NHL Hockey and World
Championship Tennis— for a total of
more than 138,000,000 viewers.
What Impact!

On such shows as: CBS Movies— The
INDY 500— The INDY 500 Time Trials—
Wide World of Sports— The Danny
Thomas Golf Classic— ThePreakness—

ADVERTISING AND PROMOTION KIT
And to help you tie in with our
national advertising,
First National City
Travelers Checks will send
you free materials
• Ad glossies for local use

that you can use to target
the message in on your local market.
D o n ’t m iss this o p p o rtu n ity fo r
big sa le s an d profits.
*

Radio Scripts

•

Counter Cards

For details write to Citicorp Services, Incorporated,
399 Park Avenue, New York, N.Y, 10022 or call COLLECT (212) 559-0542.

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Federal Reserve Bank of St. Louis

N o rthw estern

Banker, A p ril

1975

New Film Updates Bankers on EFT Progress
t t r p H E FUTURE in Your Hand,”
X is the title of an educational
film on the subject of electronic
funds transfer systems recently released
and distributed by The Graduate
School of Banking at the University of
Wisconsin, Madison. The film, accord
ing to Carl A. Bowman, chairman,
board of trustees, is intended primarily
for banker audiences and is a timely
and authoritative review and projection
of what EFT is, and can be, to banks
of all sizes.

This 27-minute color film, with
an accompanying brochure, discusses
the historical evolution of EFT;
illustrates systems now in existence;
describes the competitive and legis
lative environments in which EFT
systems are being developed; identi
fies advantages of EFT to the banker,
retailer and consumer; and provides
a glimpse into the future as seen by
noted bankers, regulatory officials
and financial scholars.
Featured in the film are: James

We build banks. But we don’t just build banks.
There’s a lot more to it than that, as our new
symbol indicates.
Our service to financial institutions is many
sided. It involves the careful, efficient integration of
four elements to produce a new building. We bring
together the client, the marketing consultation, the
architectural engineering skills and the construction
know-how and experience that results in satisfying,
esthetically pleasing, econom ical and functional bank
buildings.
And so, our new symbol. One element tying to
gether four areas into an interesting, synergistic unit—
the whole that is greater than the sum of its parts.
W rite or call fo r complete information
on full service building, the BOA way.

BRNK CDNSULTRNT5 OF RMERICR
H.Q.: 6464 W. 14th Ave.. Denver, Col., 80214. 303-232-7498
Midwest: 2701 A lgo n q uin Rd.. R olling Meadows, III. 60008. 312-394-5370
S.W.: 4230 LBJ Freeway. Dallas. Tex.. 75234. 214-387-2999
S.E.: 452 Londonberry Rd.. N.W .. Atlanta. Ga.. 30327. 404-252-6125
N orthw estern

Banker,

A p ril

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Federal Reserve Bank of St. Louis

1975

Smith, Comptroller of the Currency;
Professor Paul R. Nadler, Rutgers
University, John Reed, First National
City Bank, New York; John Fisher,
City National Bank & Trust of Colum
bus; John Dean, First Federal Savings
& Loan of Lincoln, and Fred Meyer,
Fred Meyer Discount Centers of
Portland, Ore.
Russell C. Browne, formerly of
The Omaha National Bank and now
advisor for payments systems to the
Comptroller of the Currency, served
as technical consultant on the film,
produced by Sight & Sound, Inc. of
Omaha, Nebr.
Purchase price for the film is $150
for members and banks of the Central
States Conference of Bankers Associa
tions, or $200 to others within or
serving the banking industry. Bro
chures are $5 per hundred. An intro
duction and discussion guide is pro
vided free-of-charge.
Further information on the avail
ability of film prints and brochures
can be obtained from The Graduate
School of Banking, 122 West Washing
ton Avenue, Madison, Wis. 53703
(608/256-702 L).

BMA Forms Advertising
Ethics Committee
C. Harry Domrn, president of the
Bank Marketing Association and vice
president, Girard Bank, Philadelphia,
announced the formation of the bank
advertising ethics committee to ex
amine the possibilities of abuse in
advertising practices within the bank
ing industry and, if so, to determine
the best way to correct those abuses.
Chairman of the committee is
Jack W. Whittle, vice president
marketing, Continental Illinois Na
tional Bank, Chicago.
Members of the committee are
Alan Eirinberg, first vice president,
Exchange National Bank of Chicago;
Joseph A. Hall, vice president. Chemi
cal Bank. New York City; Susan Horn,
director of marketing, Citizens Na
tional Bank of Macomb, 111.; Fairfax
Randolph, vice president and director
of marketing. Marine National Bank,
Erie, Penn.; Richard M. Rosenberg,
senior vice president, Wells Fargo
Bank, San Francisco, and James B.
Watt, senior vice president-consumer
banking, Essex County Bank and
Trust Company, Lynn, Mass.
Participating for the American Bank
ers Association is Kenneth DeCesare,
advertising director.

□

ÆX[d)Z$\
OFFICIAL

¡sst

GUIDE

GUlDg-

□
W hen we analyze the used car tra n s a c tio n s
of tho u sa nd s of new ca r dealers each m onth,

im p o r t s

b u ild in the fig u re s fro m m a jo r auctions,
a d ju st fo r regional d iffe re n c e s and
sp e cia l c ircu m s ta n c e s . . . then feed ita ll
into our IBM 360 . . . the results beat
g u essw o rk every tim e.
O ur G uide is a ccu rate, tim e ly, dependable,
essential to everyone w ith a business
inte rest in the used car. Use it p ro fita b ly.

12 Issues a Year

Every 30 Days

A REGIONAL EDITION FOR YOUR MARKET

SUBSCRIPTION RATES

SUBSCRIPTION ORDER FORM
National

Automobile

Dealers

2000 K Street, N.W.

Used

Car Guide

Washington,

Co.

D. C. 20006

Please enter our order fo r . . . New □ Additional □
Annual Subscriptions to the N.A.D.A. Official Used
Car Guide, issued every 30 days.

1 sub. ________ 15.00
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3 sub.

..........

4 sub.............

49.25

5 sub. .............. 58.00

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□ Will remit on receipt of invoice

C ity ........................................................State.................................. Zip Code

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.........

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

Northw estern

B anker, A p ril

1975

Nadler Teils Bankers To Limit Diversity
liquidity and lack of di
C APITAL,
versity will be the hallmarks of
the su ccessfu l
bank in 1975, ac
cording to Dr.
Paul Nadler. In a
keynote luncheon
before U n i t e d
Bank of Denver’s
second a n n u a l
C o rre sp o n d e n t
Banking Seminar,
the Rutgers Uni
versity professor
said, “Given the nature of the present
outlook for the economy, efficiency in
spread management and a conscien
tious approach to restrict banking per
formance will mean the difference to
small and medium sized banks in the
coming year.”
Mr. Nadler said the goals of banking
in 1975 are to win the public’s con
fidence, reduce the public’s confusion
about who manages the monetary
policy and beat the competition with
out giving away the bank.
Included in the program attended by

Concerned about...

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FOR DESCRIPTIVE BROCHURE,
Phone or write Harry Anderson, President

N o rthw estern

Banker,

A p ril

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Federal Reserve Bank of St. Louis

1975

According to Mr. Hazelrigg, plan
ning is more than putting numbers on
paper. Reviewing past experience,
estimating future performance and
measuring success all are facets of
the planning process. He stressed
that the planning process should
encompass programs which will
achieve both the financial and nonfinancial goals of the bank.

more than 145 bankers from through
out the Rocky Mountain region, were
United Bank of Denver’s Bill Loring,
senior vice president, credit manage
ment division, speaking on, “Managing
Loans in 1975”; Carroll Speckman,
senior vice president, funds manage
ment division, “ Managing Assets
and Liabilities” ; Chuck Hazelrigg,
Allow Time
senior vice president, commercial
Mr. Hazelrigg said in order for
banking division, speaking on “Plan the planning process to be effective,
ning To Meet the Profit Challenge”; a bank must allow plenty of time for
and Dick Kirk, executive vice presi the development of the plan, establish
dent, addressing the topic of “The a form and description for the plan,
Profit Outlook.”
forecast the economic environment,
During a panel discussion which develop accountable profit centers,
followed their presentation, the four communicate the plan and gain the
bank officers joined Dr. Nadler in commitment of those who will con
answering questions from bankers tribute to its achievement.
attending the seminar. Don Buchanan,
“The planning process could be
senior vice president, operations divi either formal or informal but the end
sion, United Bank of Denver, con rewards of the planning process are
cluded the seminar with a discussion seeing the results and making the plan
of the topic, “Preparing Your Bank happen.”
for EFTS.”
During his presentation on future
Year of Challenge
loan management, Mr. Loring stressed
Mr. Kirk pointed to 1975, as a
the need for limiting credit and careful year of greater challenge than 1974.
management of present loan portfolios. He said banks are competing for the
He said that areas particularly hard capital resources with every major
hit by present economic conditions industry. He pointed to profits as
will show improvements during the being important for attracting compe
year in their abilities to repay their tent personnel, building needed capital,
loans, but loan losses and foreclosures satisfying regulating requirements and
will show a marked increase.
fulfilling the desires of the stockholders.
Mr. Loring said the prudent banker
“The profit picture will be varied
will be looking to make more secured in ’75, just as it has been in 1974,”
loans in 1975 and, though primarily Mr. Kirk noted, “but sound asset/
will be looking to borrowers to work liability planning and management
out their credit problems if and when will make the difference in the coming
trouble occurs, will be prepared to year.” He went on to outline a number
move promptly on problem situations. of areas which could heavily influence
the profit outlook.
Assess the Situation
EFTS will allow banks to not only
Mr. Speckman, told the cor have a larger share of the consumer
respondent bankers they must assess credit market, but will improve the
their own situations and determine for convenience of banking for bank
themselves what spread and ratios customers while reducing the labor
they wish to maintain. He stressed intensity of the banking industry,
the need to develop a liquidity plan according to Mr. Buchanan.
and pursue its implementation.
Speaking on the impact of EFTS on
Acknowledging the difficulty of banks under $75 million, Mr.
1974, he said a good banker must Buchanan noted that retail merchants
recognize the need to manage his assets have captured a large part of the
and liabilities, control his growth and consumer credit market. He said that
strive for consistently good profit.
bankers must move toward EFTS be
Mr. Hazelrigg stressed the need for cause of the competition for the con
efficient and realistic planning. He sumer’s dollars; in order to reduce the
said at United Bank of Denver the cost of retail banking; because of the
planning process provides direction for economics of converting to EFTS; and
the coming year in the perspective of because of the benefits realized by the
long range goals.
government in implementing EFTS.

INDIVIDUAL BANKS
COMMITTED TO MUTUAL GROWTH

The Continental
Correspondent Community
Portfolio Advisory
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• Expert Analysis • Timely Evaluations
• Profitable Recommendations
• Continuous Follow-Up
Where correspondents share
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investment opportunities.

—y-

CONTINENTAL BANK
CONTINENTAL ILLINOIS NATIONAL BANK AND TRUST COMPANY OF CHICAGO

231 SOUTH LA SALLE STREET, CHICAGO, ILLINOIS 60693

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Federal Reserve Bank of St. Louis

N orthw estern

Ban ker, A p ril

1975

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

“The key difference between our
Directors’& Officers’ liability insurance and
others is an exclusive combination of features
that give banks total coverage.”
Dennis L ayne,
Chief Operating
Officer, D & O
D ivision of MGIC
Indemnity Corp.,
explains how our
highly specialized
D irectors’ and
O fficers’ liability
policy provides
com prehensive
protection for banks
w hen a law su it
strikes.

“Each of MGIC’s special
features—in combination
with “standard” features—
interacts to provide exclu
sive total protection. Very
important is waiver of
exclusions. If your board
legally indemnifies your
officials, exclusions which
would otherwise limit cov
erage no longer apply. Also,
deductible options from
$2,500 to $20,000 or more
provide higher coverage at
very low cost. Other features
include protection for retired
officers and directors, and
an extended coverage option
with full original limits of
coverage when a policy is
cancelled or not renewed.
“ Perhaps the most im
portant difference
between our policy and
others is the w ay our
individual limits can pro
tect you in case of
lawsuits.

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

“As an example, let’s take a
million-dollar coverage pol
icy. Most provide just a
simple total annual limit of
one million dollars. Not ours.
MGIC lets you choose a
million dollars of coverage
for each individual director
or officer, no matter how
many you have. This means
many millions of extra cov
erage in case of multiple
lawsuits in a given year.
“ Should a lawsuit strike,
we support you all the
w ay—the way you want.

“Some D & 0 insurers take a
very strong stand and take
over the case, period. Some
avoid any involvement.
We like to act as a helpful
partner. For example, when
you tell us about a lawsuit,
you have the right—with our
approval—to select counsel.
Then we’ll work with you
on any significant steps that
are taken. What we don’t
like to do is take control,
because we believe no out
sider should determine the
proper course for you in such
a serious situation. After all,
it isn’t only money that’s
involved, the reputations of
the individuals and the
institutions also are at stake.
“ Ours is the one policy
specifically designed for
banks.

“When you buy from us, you
get insurance specially tai
lored to your needs, right
down to the application
form. As a subsidiary of
MGIC Investment Corpo
ration (a respected member
of the financial community),

we are thoroughly familiar
with bank operations and
needs. Our underwriting, we
think, is of higher quality
due to this expertise. So,
when you join the more than
1,400 financial institutions
insured by MGIC, you’re
keeping good company.
“ For a point-by-point
comparison between
MGIC and any other D & O
policy, wxe ’ll be happy
to talk with you, or your
attorney.

“You may feel more com
fortable having your attor
ney contact us because he’s
the expert you head for fast
when threatened with a law
suit. And he’s probably best
qualified to help you make
the right decisions on cover
age. He’s also probably best
able to show you what we
mean by “total protection”
and why, dollar-for-dollar,
you get a better value with
MGIC Directors’ and Offi
cers’ liability insurance. So
for the full story, I suggest
either you or your attorney
call me or our Marketing
Director, Art Barnard,
toll-free, at 800-558-9900.
Or write today.”

MGIC

Total D & O liability protection.
And we mean total.
M G IC Indemnity Corporation

A Subsidiary of MGIC Investment Corp.
MGIC Plaza, Milwaukee, W l 53201
N orthw estern

B an ker, A p ril

1975

Improves w ith time.
Correspondent banking is ^ d n ta g e idea. And it keeps getting
better because banks like Citibank work]at making it better. We can help
your bank develop better profit planning and budgeting systems.
Implement new approaches in areas such as employee motivation and
personnel practices. Accelerate the movem ent of money.
But changing to m eet challengesks only one side of the coin.
Correspondent banking continues to flourish because its basic concept
remains as valid and viable as it ever was : to let banks extend their
services without over-extending1their resources.
So we say "Good Health" to correspondent banking. And if you'd
like to discover how our bank can help your bank have a great year—get
in touch with your Citibanker at our Correspondent Bank Department,
399 Park Avenue, New York, tfj.Y. 10022^ o r call (212) 559-2411.

F IR S T N A T IO N A L C 0 Y B A N K f
Ba nkers e v e e y w K ^ ii fuÄ lÄ it i’ba nk”

ii* * y o f t

product of u.s.a. bottled in usA-

N o rth w e s te rn Ban ker, A p ril
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Member FD.I.C.
1975

“Mini-Banks” Operate in Kroger Stores
pioneer concept known as the
A
“mini-bank” has been introduced
in the Cincinnati, Ohio, area by The
- > Central Trust Company, N.A., The
Kroger Company and Mosler Safe
Company.
,■
Certain to be controversial in some
states, the mini-banks are Central
Trust automated teller facilities, manu
factured by Mosler, to be located in
side selected Kroger stores on an ex' > perimental basis. Installation costs are
said to be $60,000 each. Annual
operational costs will run about
„ $30,000.
Comptroller of the Currency James
' > E. Smith issued statutory and regula
tory guidelines late last year author
izing national banks to operate Point
► of Sale Terminals (POS) and un
manned money transfer systems. The
* mini-banks follow these guidelines,
A with the exception that customer rela
tions personnel will instruct customers
-- in the use of the Tellermatic equip
ment manufactured by Mosler.
Modular Units
Oliver W. Birckhead, president of
' -1 Central, stated that each mini-bank
will occupy an area about five feet
by 15 feet in its respective Kroger
^ store. Construction of the mini-banks
will be in modular units by Cincinnati
" Fixtures, Inc.
a

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

SHOWN are (I. to r.): James P. Herring,
pres., The Kroger Co.; R. William Ayres,
Jr., pres., Mosler Safe Co., & Oliver W.
Birckhead, pres., The Central T rust Com
pany, studying a rtis t’s conception and
plans fo r Central T ru st’s m ini-banks. M ini
banks are autom ated banking facilities,
fea tu ring M osler T ellerm atic equipm ent,
to be located inside Kroger stores.

The Kroger locations will reflect
the bank’s effort to place banking
facilities where they are most acces
sible to customers, according to Mr.
Birckhead. He anticipates popular
acceptance of the new concept and is
therefore evaluating potential sites
in Hamilton county for additional
mini-banks. According to the Comp
troller’s regulations, they are not
construed as branch offices. Whether

or not Central will expand the service
across the Ohio state line into Ken
tucky remains to be seen. Many of
Central’s customers reside in Kentucky.
Central considers the mini-bank
concept an opportunity to reduce
costs and at the same time offer
customers additional convenience.
Kroger stores are open from 8 a.m.
until midnight. Correspondents of
Central will be offered an opportunity
to adopt the system. The equipment
is not on-line. Instead, it makes
use of perforated tape within each unit.
M e c h a n ic s

The customer uses a Central Trust
Master Charge or Central Card and en
ters a personal four-digit code number.
The four-digit code is as highly person
alized as a signature. A series of illu
minated step-by-step instructions guide
the customer through his transaction.
Mosler Tellermatic will dispense
cash to customers from checking
or savings accounts. It allows custom
ers to make cash or check deposits,
make mortgage payments, automobile
instalment payments, pay utility bills
and it will transfer funds from one
account to another. A receipt fully
documenting each transaction is issued
when the customer concludes his
business and his card is returned.
— End
Northw estern

Ban ker, A p ril

1975

HE Pension Reform Act of 1974, signed by President
Ford in September, provides an opportunity for
banks to offer new services to their customers.
Many individuals are now eligible to create tax shelters
to provide income in retirement years. The banking indus
try has been given the inside track to provide these services
and should start planning a program now to meet the
competition.
Two provisions in the PRA will provide the oppor
tunities:

Pension Reform Act:

Inside Track

1 • The act now permits employees not covered by
private pension plans to save or invest up to 15 % of their
income, tax-free, for a maximum of $1,500.00 each year,
to finance their retirement. This will be known as an
“Individual Retirement Account.”

For Potential
Deposit Growth

By COLLIN W FRITZ
Banking Consultant
Des Moines, la.

2 * The so-called Keogh plan or HR 10 has been
liberalized for full or part-time self-employed persons.
It enables them to put aside a tax-free 15% of their
income, up to $7,500.00 from income of $50,000 or more,
in their own retirement plans.
Until passage of the new acts, the maximum was only
10% or $2,500.00. Now the act permits self-employed
persons earning between $750.00 and $5,000.00 to put
aside a flat, tax-free $750.00 and anyone earning less
than $750.00 from self-employment, to save it all.
Many workers who moonlight could take advantage of
the act and pay little or no income taxes on their outside
income.
Yearly contributions to a Keogh Plan can be made to
a trust, life insurance annuity, U.S. Treasury Retirement
Bonds or to custodial accounts in banks, i.e. savings
accounts or TCDs.
Individual Retirement Accounts have limited invest
ment opportunities to the participants — either savings
accounts or TCDs or U.S. Treasury Retirement Bonds.
This program at least limits your competition to the
saving» & loans and the U. S. Treasury Bond program.
The money contributed to either a Keogh Plan or IRA
Plan cannot be withdrawn before age 59V2, except in

SELF EMPLOYED TAX FREE RETIREMENT POTENTIAL
Based on a 7 1/2% C e rtifica te , in te rest com pounded co n tin u o u s ly
Annual A m ou nt
Deposited

6 yrs.

10 yrs.

15 yrs.

20 yrs.

25 yrs.

30 yrs.

$ 1,000

$ 7,296.89

$ 14,341.81

$ 26,709.11

$ 44,703.43

$ 70,885.00

$108,978.90

1,500

10,945.34

21 .512.72

40,063.67

67,055.15

106,327.50

163,468.41

2,500

18,242.23

35.854.56

66.772.78

111,758.57

177,212.50

272,447.35

3,500

25,539.12

50,196.34

93,481.89

156.462.00

248,097.50

381,426.29

4,500

32,836.01

64.538.15

120,190.99

201,165.43

318.982.50

490.405.23

5,500

40,132.90

78.879.96

146,900.10

245,868.86

389,867.50

599,384.17

6,500

47,429.79

93,221.77

173.609.21

290.572.29

460,752.50

708,363.11

7,500

54.726.68

107,563.57

200.318.32

335,275.72

531.637.50

817,342.05

Digitized
N o r tfor
h w FRASER
e s te r n B an ke r, A p ril
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1975

ye-

Bob Ramaley, North Central Life Assistant Vice-president, is shown discussing group mortgage
insurance with Harlan Nygaard, president, Knutson Insurance Agency, Minneapolis

THINK OF BOB
AS YOOR MAN
ON 00R PAYROLL!
Bob Ramaley is a North Central Life Redcoat. A dedicated
insurance professional in the fullest sense of the word. Although
we carefully selected him and pay him, he really works for y o u .
His job is to show you how to effectively and p r o f i t a b l y mer
chandise insurance services to your customers right along with
your savings, cheeking, lending and other services.
Bob is backed by a team of home office pros whose blended
skills form the ultimate in customer collaboration — “Red
Coat Service”.

r-i

“Red Coat Service”, (exclusive with North Central, and one
of the reasons why we re considered the leader in insurance
through financial institutions), provides tailored-to-your-needs
insurance programs; creates direct mail and point-of-purchase
materials for you; shoulders your administrative and book
keeping chores; and, where necessary, even totally trains
your staff.
And, importantly, “Red Coat Service" gives you access to
the Red Coat Desk — North Central's unique, toll-free, direct,
national HOT-LINE system that links you to our home office

and makes available three vital benefits: (1) NO-LIMIT CRED
ITOR INSURANCE. A program that allows you to get im
mediate over-the-phone approval for extended coverages
beyond the limits for which you normally can contract. (2)
INSTANT RATE CALCULATIONS. North Central can solve
your complicated rate problems in a moment, via computer,
whenever you have need for immediate calculations. (3) Instant
answers to your questions from NCL’s Red Coat specialists.
North Central sets the whole thing up for you. And continuallv solves any problems for you as you go along.
What do you do? Make money! And protect your customers
from the unexpected.
For more information on how Bob, or any other of North
Central’s expert fieldmen can work for you, call the Red
Coat Desk at the numbers shown below:
Wis., N. Dak., S. Dak., la., Nebr. ■(8 0 0 ) 32 8-16 12
Minn -(8 0 0 ) 7 9 2-10 30; All Other Areas -(8 0 0 ) 328-9117

North Central Life Insurance Company
NORTH CENTRAL LIFE BUILDING, 275 EAST FOURTH STREET. ST PAUL. MINNESOTA 55101

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

N o rthw estern

Banker, A p ril

19 7 9

34
If you contributed $7,500 each year, you would have*
After 5 Years
Annual
Interest
Rate

Tax-Free
Account

Taxable
Account

$41,440

$19,710

5V2%

41,860

6%
61/2 %

After 10 Years
Tax-Free
Account

After 20 Years

After 30 Years

Taxable
Account

Tax-Free
Account

Taxable
Account

Tax-Free
Account

Taxable
Account

$ 94,330

$42,010

$248,000

_______
$ 95,790

$498,290

$164,630

19,810

96,570

42,500

261,510

98,240

543,270

171,350

42,280

19,910

98,860

42,990

275,890

100,760

592,936

178,410

42,700

20,010

101,210

43,490

291,190

103,360

647,810

185,810

‘ A s s u m e s ta x p a y e r is in 5 0 % ta x b ra c k e t.

If you contributed $1,500 each year, you would have*
After 5 Years

After 10 Years

After 20 Years

After 30 Years

Annual
Interest
Rate

Tax-Free
Account

Taxable
Account

Tax-Free
Account

Taxable
Account

Tax-Free
Account

Taxable
Account

$8,290

$6,060

$18,870

$13,350

$49,600

$32,640

$ 99,660

$60,520

51/2%

8,370

6,110

19,310

13,590

52,300

33,940

108,650

64,430

8,460

6,150

19,770

13,820

55,180

35,290

118,590

68,630

61/2%

8,540

6,200

20,240

14,070

58,240

36,710

129,560

73,160

Tax-Free
Account

Taxable
Account

‘ A s s u m e s t a x p a y e r is in 2 5 % t a x b r a c k e t .

case of death or disability, without severe tax penalties.
Withdrawals from a retirement account must begin be
fore age 70V^. Most retirees, it is assumed, will be in lower
tax brackets when they withdraw their funds and finally
pay taxes on them.
Under the new law, many older persons will retire with
much more income than they otherwise could have hoped
for. A hypothetical participant, under the old law, could
have contributed $2500.00 a year for 30 years at a return
of 5% and would have received a monthly check at
retirement of $1,400.00. Under the new law the partici
pant could contribute $7,500.00 per year at the same rate
of return and receive a monthly check of more than
$4,000.00 per month upon retirement. In most cases, this
is in addition to his social security payments.
The “Iowa Bankers Insurance and Services Inc.”
owned by all Iowa banks, has submitted a prototypemaster plan to Internal Revenue for both Keogh plans
and Individual Retirement Accounts. They will act as
trustee of the plans for all Iowa banks desiring to partici
pate.
The banks will then serve as custodians of the funds
contributed by their customers. At the present time, Iowa
banks are limited to one year certificates involving trust
funds or the use of savings accounts. Recommendations
have been made by the Iowa Bankers legislative com
mittee to the legislature to extend the investing limits
regarding trust funds.
The marketing targets under the Keogh plans will be
farmers and professional people in the rural areas,
along with the small businessman. The IRA plans should

,N o r t h w e s t e r n B a n k e r , A p r i l
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1975

prove very attractive to employees of small businesses
and those primarily around age 50 who are most con
cerned about retirement income. Both husband and wife
who are eligible under IRA rules could create their own
plans, thereby substantially reducing present tax rates.
Employees of small businesses desiring to enter an IRA
plan may have their contributions deducted by the em
ployer and deposited to their account in the local bank.
They would then receive the lower tax bite on the weekly
basis. Social Security contributions remain on the gross
wage rate paid to the employee.
An unmarried employee whose taxable income is
$10,000 a year will be able to contribute $1,500
to his retirement account, reducing his taxable income to
$8,500 and his federal income tax reduced by $125.00.
In higher brackets the tax savings is much more sub
stantial. A $20,000 employee can reduce his tax bill
by $540.00 if he contributes $1,500 to his plan; in effect,
the government finances more than one-third of his
contribution.
The Iowa Bankers Insurance and Services Corp. will
hold a series of meetings throughout Iowa explaining
in detail the mechanics of serving as custodial agents of
its plan. Included in the program will be marketing pro
cedures and aids for the plan, along with an explanation
of the accounting and reporting requirements necessary
to meet the regulations.
The Pension Reform Act has created the opportunity
for banks to provide new services to their customers
with great potential deposit growth based on a sound
foundation. — End

N o m atter w hat
the econom y does
in the next 5 years.
\bur home improvement
loans can be
fully profitably
insured against loss.

~ -í

Complete protection. Against recession,
unemployment, strikes, divorce,
sickness and every conceivable cause
of default on your HIL portfolio. Insured
Credit Services, w orld's largest private
insurance source for home
I N S U R E D C R E D IT
improvement loans, currently offers
S E R V IC E S
this invaluable protection to over 1,000
leading banks. Call or w rite W illia m F.
IN C .
307
N.
Michigan
Ave.;
Chicago,
Illinois 60601
312/263-2375
Schumann, President, for complete
\merica's
No.
1
insurer
of
home
improvement
loans.
details.

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

N o rthw estern

Ban ker, A p ril

1975

Fiduciary Liability
and the
Pension & Reform Act
of 1974

ROBERT A, CARNEY
President and Attorney
Insurance Programmers, Inc.
Chicago, HI.
^

OU may have seen a number of advertisements by insurance companies and their agents concerning a new
insurance companies and their agents concerning a new
liability coverage to protect the fiduciaries of pension and
welfare plans from personal liability. The scope of the
new Pension and Reform Act of 1974 has made it neces
sary for fiduciaries under the act to consider the need
for insurance protecting their personal assets. The new
act provides a special problem for those financial insti
tutions which act as fiduciaries for pension and welfare
plans of others. It is a much larger problem for a financial
institution than it is for other companies who are only
concerned with their own pension and welfare plans and
not the plans of others.
We need to clarify some of the definitions in the new
law and put the law in perspective with current insurance
coverages being offered by various insurance companies.
What plans are covered by the new Pension & Reform
Act of 1974? The act defines employee welfare benefit
plan as any program established by an employer for

After reviewing the answers to these questions you
can see that the act is intended to be inclusive and
by rough count include over a million employee welfare
benefit plans, which will include well over one million fi
duciaries who have become fiduciaries by name or by their M
own activity.
What duties does a fiduciary have to the participants, < *beneficiaries and the plan? References are made that the
fiduciaries duties are to act in accordance with the prudent
man rule. Basically the rule of a prudent man is to act
with diligence, care, skill and prudence as any prudent
man would act in like capacity under conditions prevailing
at the time.
It would appear over the last decade that the prudent
%man rule has been expanded by the courts to a prudent
expert rule. It is no longer possible for a fiduciary to invest
in the safest of securities and claim that he was acting
as a prudent man. Such an investment can be construed
as an ordinary investment that anyone could make and

“ It is no longer possible for a fiduciary to invest
in the safest of securities and claim that he
was acting as a prudent man.”
the purpose of its employees or their beneficiaries,
including medical, surgical hospital care for sickness,
accident or disability, death, unemployment or vacation
benefits. It also includes training programs, scholarship
funds or any funds that provide retirement income to
employees or results in deferred income to employees.
The definition would include both insured and uninsured
programs.
Who is a Fiduciary?
Who is a fiduciary under the new law? You will see
by reading the act that a fiduciary can not only be the
person or corporate trustee named as a fiduciary in the
plan but one can be a fiduciary by mere conduct relative
to some aspect of the plan. The exercise of authority
or control in management or disposition of plan assets
or giving investment advice for compensation or
exercising responsibility for the administration of a plan
will automatically classify a person or company as a
fiduciary.
N o r t hfor
wes
tern B anker, A pril
Digitized
FRASER
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Federal Reserve Bank of St. Louis

1975

that the fiduciary who is receiving compensation must
exercise his knowledge and experience to invest or
manage as a prudent expert.
The Pension and Reform Act of 1974 specifically in
dicates that a fiduciary must:
(A) Discharge duties solely in the interest of the
beneficiaries and participants of the plan.
(B) Adhere to the documents and instruments governmg the plan.
(C) Diversify investments to minimize loss.

-4

Prohibited Transactions
In addition to the duties so specified there are transactions that are prohibited by a party-in-interest. A partyin-interest is broadly defined to include employers of plan
participants, persons rendering services to the plan,
the officers, agents, fiduciaries and employees of a plan
and relatives, agents and joint venturers.
The transactions that are prohibited include:

*
v‘

^
^
f

*
-

(A) A sale, exchange or lease of property between the
plan and a party-in-interest.
(B) The furnishing of goods, services or facilities be
tween the plan and a party-in-interest.
(C) A loan or extension of credit between the plan
and a party-in-interest.
(D) A transfer of assets of the plan to a party-ininterest or a transfer for the use or benefit of a party-in
interest.
A fiduciary is prohibited from:
(A) Dealing with the assets of the plan for his own
account.

“Civil liability imposed upon a
fiduciary is inclusive of his personal
assets . . . but the plan can pur
chase insurance to cover the

potential fiduciary liability."

(B) Receiving any compensation for his own account
from any party dealing with the plan in connection with
a transaction involving plan assets.
*
(C) Acting in any transaction involving a plan on
t behalf of a party whose interests are adverse to the
interests of the plan, its participants or beneficiaries.
The civil liability imposed upon a fiduciary is inclusive
of his personal assets and where he has breached his
fiduciary duties, a suit can be brought by the Secretary
of Labor, a participant, beneficiary or another fiduciary
of the plan. The plan cannot contain a Hold Harmless
^ Agreement to protect the fiduciary but the plan can pur
chase insurance to cover the potential fiduciary liability.
The purchase of the insurance by the plan can only be
► made if there is recourse against the fiduciary for any
loss. Therefore, the employer or the fiduciary will have
~ to purchase his own insurance protection.
What is available under your present insurance to pro
tect against potential fiduciary liability and what other
> insurance should be carried to protect the fiduciary from
his civil liability?
a

Endorsement
*
A number of insurance carriers who provide the
Comprehensive General Liability coverage for the bank
also provide an endorsement referred to as Employee
> Benefit Plan Liability insurance. This endorsement pro
vides errors and omissions coverage in the administration
*
of employee benefit programs but does not cover wrong*
ful acts of the fiduciaries such as mismanagement of the
plan assets. This endorsement is very limited in respect
► to the potential liability of a fiduciary.
Another alternative that many have suggested will offer
protection is the Directors & Officers Liability insurance
■s carried by the bank to protect its officers and directors
from personal liability. There is considerable doubt that
** this coverage will protect the fiduciaries on the bank’s
own pension and welfare plans because they are generally
not named as an insured in the policy and any interpreA tation of the policy wording would lead you to believe
that only wrongful acts are covered involving their capac
ity as a director or officer of the corporation.
^
There is another question involving whether the trust

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

officer is personally protected under the Directors &
Officers Liability Policy for judgments and legal fees
for violations of the Pension and Welfare Reform Act
of 1974. Most Directors & Officers Liability Policies cover
the trust officer acting in any capacity within the trust
department and therefore would not exclude activities
involving the Pension and Reform Act of 1974.
Trust Dept. Insurance
Further coverage can be provided to the trust depart
ment of your bank by purchasing a Bank Trust Depart
ment Errors and Omissions Policy. This specific coverage
applies to the corporation and in several forms can be
extended to cover the trust officers, employees, and direc
tors acting within the scope of the trust department. Most
suits involving trust departments of banks are brought
primarily against the trust department rather than any
specific individuals. This policy would protect both the
trust department and the individuals involved from any
actions brought by a plaintiff whether under the Pension
Reform act or otherwise.
If the bank’s own pension and welfare plans are
entrusted to the trust department of the bank, then there
is no need for a separate Fiduciary Liability Policy. The
bank trust department Errors and Omissions Policy would
pick up the fiduciary liability imposed by the Pension and
Welfare Act of 1974.
In the event that the bank does not have a trust
department acting as a fiduciary for its own plans, then
there is a need for a Fiduciary Liability Policy protecting
all the designated and non-designated fiduciaries con
nected with each plan. The policy should be broad enough

“ It would be wise to have someone
who has been professionally involved
with the exposures . . . advise you on
policy forms that should be under
consideration in your bank.”
to cover all liabilities of the fiduciary whether under the
Pension and Reform Act of 1974 or other involving state,
federal or common law.
The Fiduciary Liability Policy or any policy by a similar
name has been formulated because of the Pension and
Reform Act of 1974 and thus may not be stabilized.
Many of the insurance companies have changed their
forms a number of times in the last few months. The
forms are, therefore, not uniform. The same can be said
for the Directors and Officers Liability Policy and the
bank trust department Errors and Omissions Policy, but
for reasons other than the coverage is new.
It would be wise to have someone who has been pro
fessionally involved with the exposures in all these areas
review your exposures and advise you on the policy forms
that should be under consideration in your bank. This
article cannot be inclusive of all the exposures that are
now revealed under the new law. The scope and potential
liability is sizeable and under the protection and en
forcement of the Secretary of Labor. We do expect
numerous litigation and some sizeable judgements. Pro
tect yourself accordingly and with proper advice.—End
N o rthw estern

Ban ker, A p ril

1975

How
Synergetic is
M oiAm erica?

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

Being synergetic is the briefest way of saying that we
work together smoothly.
We are a registered bank holding company of
fering diversified financial services in the areas of
commercial banking (Jackson State Bank & Trust,
Maquoketa, Iowa; First Trust and Savings Bank,
Wheatland, Iowa), consumer finance (Morris Plan),
leasing (LeaseAmerica Corporation), venture capital
(MorAmerica Capital Corporation) and commercial
mortgage financing (MorAmerica Mortgage Com
pany.) We serve the nation.

MorAmerica Financial Corporation
Peter F. Bezanson, President
200 American Building
Cedar Rapids, Iowa 52401
AC 319-363-0261

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Federal Reserve Bank of St. Louis

Will Regulators Remove
Profit, Destroy Credit Life

By CHARLES M. SPINNING
Assistant Vice President
The Credit Life Insurance Company
Springfield, Ohio

■ The Credit Life was founded in 1925 and issued the first group credit life in
surance policy in the United States. The author states, “During the first 50 years
of operation we have devoted all our time and talents to the specialized field of
credit insurance and have witnessed the birth and growth of regulation and its
effect upon marketing.”
RUE regulation of credit in
surance began with the Model
Bill which was adopted in 1959
by the National Association of In
surance Commissioners, hereafter re
ferred to as NAIC. This regulation
corrected inadequacies of forms, meth
ods of filing and supplying information
to debtors. It established the right of
the Commissioners of Insurance of the
various states to approve forms whose
rates “would be reasonable in relation
to benefits provided.” This approach
proved to be inadequate in that no
standard had been established by the
Model Bill for reasonableness of
rates.
As a result of this flaw, the next
major step in regulation was the adop
tion of the Richmond Resolution by
the NAIC in 1966. This resolution,
which was offered to the NAIC by
Credit Insurers, defined reasonable
ness as any premium which would
produce, or is expected to produce, at
least a 50% loss ratio, i.e., half of the
premium would be expected to be re
turned to debtors in the form of claim
payments.
Since 1966, several states have
adopted the 50% bench mark as the
sole criterion for rate making. A few
states have added the need to consider

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h w FRASER
e s tern B anker, A pril
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Federal Reserve Bank of St. Louis

1975

compensation for the producers and
insurance companies, thus attempting
to establish the minimum and maxi
mum compensation for both creditors
and insurance companies.
In 1969, California adopted a regu
lation which acknowledged variable
loss ratios produced by various types
of creditors and this regulation estab
lished banding of rates. Five basic
groups were established by California
regulation with rates ranging from 50
cents per 100 per year for auto dealers
to 65 cents per 100 per year for second
mortgage business. California, also, set
out methods for deviating each rate
based upon the actual experience for
each case. A case, as defined under the
California regulation, may be one
creditor or many creditors who pro
duce a certain amount of earned pre
mium in a given time frame.
At the December, 1974, meeting of
the NAIC the new morbidity study re
vealed that the current accident and
health rates are inadequate and should
be increased if the coverages are to be
continued. The Long Term Subcom
mittee recommended new life rate
structures for terms in excess of five
years and they suggested a rate by age
and class of business, as well as estab
lishing the premium calculation on the

net unpaid balance of the loans. This
method would exclude unearned inter
est charge payments by the insurance
companies.
What then does this mean to the
banking industry? As you can see, the
thrust of regulation has been to reduce
rates, reduce profits, and increase
benefits. All of these by themselves are
positive steps; however, regulators
must be made aware of the fact that
the creditors are of primary im
portance in the marketing of credit in
surance, and are entitled to a fair re
turn for their investment of time and
resources needed to effect marketing
these valuable products.
We look upon the financial institu
tions of the country as vital to the
marketing of our product. We feel the
compensation must be sufficient to
guarantee our continued success in of
fering this valuable product to the con
suming public. In recent years, we
have been concerned by the attempts
of regulators to remove the profit in
centive from the marketing of credit
insurance. Recent recommendations
suggest that creditors should be placed
in a fiduciary capacity in the marketing
role, removing compensation for their
efforts. We feel that if our products are
to be marketed successfully, the cred
itors must be adequately compensated.

41
The credit industry has been criti
cized in recent years because of high
penetration figures. These same critics
suggest that our products are forced
upon consumers who are in an inferior
bargaining position. We feel that our
product is valuable and desirable for
consumers and that, since July, 1969,
its cost has been totally disclosed to
all potential purchasers and the cover
age has been requested by them.
It is strange that Regulation Z,
“Truth in Lending,” tends to be ig
nored by critics. When these same con
sumers were questioned by Ohio Uni
versity in a nation-wide poll of
consumers, in excess of 90% indicated
that they would recommend coverage
to a friend and also that they would
want the coverage on future loans. In
fact, to quote the Ohio University
study, “It is the strong demand for
credit insurance and not the inferior
bargaining position of borrowers in
consumer credit transactions that ex
plains the high penetration ratio credit
life insurance and the growing penetra
tion of accident and health insurance.”
Regulators should take great care
to assure the continued marketing of
this valuable product through financial
institutions, as it is available through
no other media. By severely limiting
compensation to creditors, credit in
surance could pass from existence.
Let’s look at the average credit life
insurance policy. The policy is issued
to a man age 39, for $1,300.00, for a
term of 30 months, total premium, as
suming a 75 cent per 100 per year
rate, of $24.31. Total compensation
available to a creditor would range
from $9.00 to $11.00. To complete
this transaction, the bank must disclose
the cost of the insurance to comply
with Regulation Z, “Truth in Lend
ing.” Then, if the coverage is desired,
the creditor must issue and deliver a
certificate of insurance, within 30 days,
to the debtor in compliance with the
state regulations and report the certifi
cate to the insurance company.
Eventually, the creditor may be re
quired to compute and pay a refund
in the event of prepayment, renewal
or refinancing and report that refund
to the insurance company. If there is
a claim, the bank must see to the com
pletion of the claim forms and forward
them to the insurance company. In ad
dition, upon receipt of payment from
the insurance company, they must
close out the note and contact the
estate to return any excess benefits.

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Federal Reserve Bank of St. Louis

FACTS Not Fiction, Fantasy or Conjecture
By LEWIS H. GREGG
Executive Vice President
Minonk State Bank
Minonk, III.
happens when the largest Federal Savings and Loan Association
Wr HAT
in Central Illinois opens its first branch office in Illinois in your town
of 2,500, in which yours is the only bank?
We approached the problem, if you want to call it that, with the
typical small town philosophy of competitive business— “Live and let live.”
Already paying the highest legal rates on time deposits, we knew emphasiz
ing them wasn’t going to interest the prospective investors at our desks.
To keep the money from going to our new
competitor we pushed the purchase of U.S.
Government and Agency Securities through
our bank. The short term rates were better
than the permissive rates of the savings and
loan and we charged a comfortable fee in
completing the purchase. We didn't get a
deposit, our competitors didn’t get a deposit,
but we got a fee,
Loanwise, our new competitors presented
no problem. Since opening their office on
October 29, 1973, they have made two real
estate loans in our community. During that "S ta tistica lly, our demand de
same time we have made 60 residential real posits have increased 3 .4 7 % ,
estate loans and helped eight farmers pur savings accounts 1 .5 6 % ,
chase 528 acres of land with farm real estate CD’s 1 4 .0 2 % , and loans
2 7 .4 % .”
loans.
Armed with these loan facts, we were able to convince our local
school board to give our bank its time deposits, even though the Federal
Savings and Loan was making a concerted effort to get this time money by
offering higher rates and bringing in their home office expert to talk to the
board.
Statistically, at the end of January, 1975, since October 29, 1973, the
opening date of the Federal Savings and Loan office in our town, our
demand deposits have increased 3.47% ; our savings accounts have in
creased 1.56%; our certificates of deposit have increased 14.02%; our
loans have increased 27.4% and our loan to deposit ratio has increased
from 45.67% to 54.07%.
In summary, when people, mostly bankers, ask us how the branch
office of the savings and loan has affected us, our stock answer is: “Let’s
say they have not helped us, but at the same time they have not hurt us.”
The deposits they are getting are those we wouldn’t get anyway. A large
amount of them are brought in from out of town. Our local owners report
they see a lot of unfamiliar faces shopping in their stores. All of the money
the local office receives passes through their checking account at our bank.
It doesn’t stay very long as it is transferred to its depository in the city
where the main office is. However, we do enjoy the float.
In conclusion, maybe we independent bankers should stop fighting
the S&L branching and concentrate on EFTS where we must get in on the
ground floor if we are to compete and survive.— End
In summation, we would suggest
that we are not opposed to regulation
if needed. However, when it endangers
our marketing, it could remove a valu
able product from the market place.

Therefore, regulators should be sensi
tive to profit needed for both the in
surance company and the financial in
stitutions involved in the transaction.
— End
N o rthw estern

Banker,

A p ril

Í975

Points for Banks
To Remember to

By L. W. DUNCAN
Vice President
Employers Mutual Companies
Des Moines, la.

Comply with OSHA
THE AUTHOR is vice president, fo r Risk Im provem ent and Payroll A u d itin g fo r
E m ployers M utual, long a leader in in d u stria l safety. Representatives of his departm ent,
w orking w ith the p o lic y h o ld e r and the agent, have aided many businesses in
understanding and co m p lyin g w ith the com plex OSHA federal law, at no cost to the
p o licyh o ld e r. B ill Duncan holds a B.S. degree in C ivil Engineering and is a C ertified
Safety P rofe ssion al. He has been a stud ent of in d u stria l safety since 1955.

SHA has now come of age. In
the ensuing years since its
inception in 1970, many of the
fears th a t were present with the
launching of the Occupational Safety
and H ealth A ct have since faded
away, and slipped from the everyday
consciousness of the busy executive.
B ut...O S H A is still very much
alive and well, and quite a far cry
from the dorm ant figure many of us
may be thinking of. In fact, OSHA is
now adm inistered for the Federal
Government in m any localities by
state authorities, which means th a t
there are m any more compliance
officers available than originally,
and many of these state jurisdictions
have instituted additional safety
specifications over and above the
many Federal standards.
W hat, then, are the ram ifications
for the banking industry of the
Occupational Safety and Health
situation as it now stands? Simply
this: your workplace is now even
more likely to be the scene of a
compliance officer’s visit, and may
now be subject to a more rigid set of
safety and health standards than
you originally bargained for!

Safety Item s for O SHA

Let us examine briefly some of the
safety items which m ight come
under the scrutiny of an OSHA
inspector:
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Federal Reserve Bank of St. Louis

1. O cto p u s w irin g in a n d
around your clerical areas,
with its atten d an t tripping
and electrocution hazards.
2. Sturdy step ladders and step
stools in your filing areas.

3. Adequately marked em er
gency exits.
4. Safe s ta irw a y s in c lu d in g
non-slip steps and sturdy
handrails.
5. An adequate supply of fire

ENVIRO NM ENTAL sam ple taken from the breathing zone of an em ployee in a plant
insured fo r w o rkm en’s com p en sation by Em ployers M utual is analyzed by an EMC
ch e m ist. The Gas C hrom atograph pictu red is ju s t one m achine of the vast am ount of
equipm en t used by the firm ’s Risk Im provem ent sta ff. A lth o u g h a high cost departm ent,
it is operated by EMC at no cost to p o licyh o ld e rs to assist them in reducing safety and
health hazards, re su ltin g in im proved insurance risks.

Want to Increase Your Installment Loan Department Yields?

Richard D. Beatty, Sr.

■ -

Manager
M odernization Credit Insurance Division

D ick is the man you w a n t! He is manager o f ou r
P ro p e rty Im p ro ve m e n t Loan Insurance D ivision . . . o r
ganized to meet the needs o f a gro w in g num ber o f
Am ericans w h o are expanding or rem odeling th e ir
present homes because o f the ever sk y ro c k e tin g costs o f
new homes. This is anothe r exam ple o f how Central
N a tion al is c o n sta n tly designing new pro du cts to f it the
needs o f the tim es. It is also ty p ic a l o f the in no vative
pro gra m m ing th a t is one o f the big reasons w h y Central
N a tion al is generally recognized as the num ber one
specialty insurance in s titu tio n in the c o u n try .

D ick is a loan insurance professional in the tru e sense o f
the w o rd . His ba ckground o f 18 years in the fie ld
includes:

Nine years as a new business representative and Ipranch
manager w ith n a tio n a lly -k n o w n finance com panies.
Six years as in s ta llm e n t loan manager and o ffic e r fo r
west coast national banks.
Three years as vice president o f a n a tio n w id e P roperty
Im p ro ve m e n t Insurance Program.
D ick w ill help you im p le m e n t o u r new 100% guaranteed
P rop erty Im p ro ve m e n t Loan Insurance Program in to
your
In sta llm e n t
Loan
D e pa rtm e nt . . . a program
sp e cifica lly ta ilor-m ad e to f it the unique needs o f y o u r
fin a n cia l in s titu tio n . This should prove to be a very
active and p ro fita b le m arke t fo r you d u rin g the n e xt few
years.

Call Dick collect (402) 344-7600. You will be glad you did!
/ C R E D IT L IF E A N D D IS A B IL IT Y
J HOUSEHOLD CONTENTS
J IN S T A L L M E N T SA LES F L O A T E R
J P H Y S IC A L D A M A G E
/ V E N D O R S S IN G L E IN T E R E S T
/ P R O P E R T Y IM P R O V E M E N T LO A N IN S U R A N C E

y
>

A U T O M O B I L E S — M O T O R C Y C L E S — S N O W M O B I L E S — M O T O R B O A T S — M O B I L E H O M E S —T R A V E L T R A I L E R S — F U R N I T U R E A P P L I A N C E S — F A R M M A C H I N E R Y — L I V E S T O C K M O R T A L I T Y — C O N T A C T L E N S E S —A l R C R A F T T I T L E — L E A S E G U A R A N T E E

*
*
,X

-iV

THE CENTRAL NATIONAL INSURANCE GROUP of OMAHA
105 South 17th Street

Omaha, Nebraska 6 8 1 0 2

Telephone (402) 34 4-7 6 0 0

A F id e lity C o rp o ra tio n G roup o f C om panies
Maurice G. Olson
President and Chairman

• The Central National Insurance Company of Omaha
• The Insurance Company of Florida
• The Protective National Insurance Company of Omaha
• Security Assurance Company, Scottsdale, Arizona
• Fidelity Bankers Life Insurance Company, Richmond, Virginia (Credit Insurance Division)

V .

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Federal Reserve Bank of St. Louis

N o rthw estern

Banker,

A pril

1975

e x tin g u is h e rs w hich are
freshly charged and m ounted
in accessible locations plainly
marked.
If your branch locations have
landscaping which is tended
by your own grounds keep
ers, then m anicuring equip
m ent m ust meet several
safety criteria, and lawnmower gasoline m ust be
stored in U.L. listed “ safety
c a n s ’’—n o t th e sim p le,
square tin types w e’re all
accustomed to at home.
If your organization has its
own m aintenance staff, the
e le c tric a lly pow ered to o ls
and appliances used by these
employees m ust be provided
with electrocution protec
tion.
If scaffolding is used in the
co u rse of rem o d e lin g or
m aintenance, it m ust be of
sound construction and erec
te d in a c co rd a n ce w ith
published standards.
You should have at least two
persons on your staff who are
F irst A id-trained and who
h a v e u p -to -d a te tra in in g
cards as proof. A wellstocked F irst Aid kit is also
an asset even though a
d o c to r ’s office m ay be
nearby.

Farmers Mutual Hail Writes
$926.3 Million in Premiums
Officers and three directors of
Farmers Mutual Hail Insurance Company were re-elected recently at the

The “ General D uty Clause’’ of
OSH A states simply th a t the
employer m ust provide a “ .. .safe and
healthful place’’ for his employees to
work. Under the provisions of this
clause, many employers have re
ceived citations and fines for safety
hazards which are not specifically
alluded to in the published s ta n
dards. These m ight be such items as
a worn and wobbly chair still in use
by an employee, or unsecured file
cabinets th a t may topple over on an
employee who forgets and pulls out
two heavily-loaded drawers a t the
same time.
Of course, these few paragraphs
are by no means m eant to represent
the final word in the state of the art
as respects OSH A, b u t they are
in te n d e d to a g a in rem in d th e
banking executive th a t OSH A is still
with us, and of his responsibility
under the Occupational Safety and
Health Act to provide a safe environ
m ent for his employees to work; and
to remind us all th a t our initial
safety efforts were possibly not th a t
all-encompassing to begin with, and
th a t we certainly can’t afford to rest
on our laurels a t this point!
Training is an im portant ingre
dient in accident prevention. , A
well-informed and alert supervisory
force is one of your best tools for
m aintaining a ...“ safe and health
ful’’...place for em ployees. -End

Hartog, Des Moines, and Perry
Rutledge, Adel.
Officers re-named were: Max D.
Rutledge, president; F. W. Benson,
Donald D. Bockelman, David A.
Rutledge, Perry Rutledge, and J. E.
Streepy, vice presidents; Albert Rut
ledge, vice president and secretary;
Dale Den Hartog, treasurer; Ray S.
Olson, assistant secretary; and Albert
Carter, assistant treasurer.
Max Rutledge reported that the
company set an all-time record of
over $926.3 million of crop hail in
surance in force during 1974 to lead
the insurance industry nationally in
this type of coverage. The $232.4
million growth represented a 33% in
crease over 1973. Mr. Rutledge
reported also that surplus to policy
holders increased to an all-time rec
ord of $24.3 million. The company
reported over 20,000 claims paid
to policyholders during the year.
The company writes crop hail
insurance in nine midwestern states,
and also writes turkey insurance,
and provides reinsurance coverage
nationally.

Heads Credit Card Group

company’s 82nd annual meeting at
the firm’s office, 2323 Grand Avenue,
F)es Moines.
Directors re-elected were: F. W.
Benson, Sheldon, fa., Dale Den

William Bates, Jr., vice chairman of
the Philadelphia National Bank, has
been elected chairman of National
Bank Americard Incorporated (NBI),
the membership corporation which
administers the U.S. BankAmericard
program.
Mr. Bates succeeds Guy W. Botts,
chairman and chief executive officer
of Barnett Banks of Florida, Inc.,
Jacksonville.

000200000200001001

BOX 1820

N o r t hfor
w e sFRASER
tern B anker, A p ril
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Federal Reserve Bank of St. Louis

1975

F A R G O , NO. D AK .

58102

Ben Adam s
Missouri

Art Krebs
Arkansas-Louisiana

Jack House
Iowa

Duncan Kincheloe
Texas-Oklahoma

Paul Libbert
Missouri

Verne Schw eder
Kansas City Metropolitan

Straight
Nebraska Colorado

Jack Beets
Kansas

Tom W ood
Kansas

E. L. Burch
Vice President

K
.A

À,

We have a tiger
in your territory.

Don Thom ason
Senior Vice President

Our symbol of strength and
solidity is getting us everywhere.
People like a leader. And
when that leader can also get
behind a problem and give it a
push toward a practical solu
tion-w ell, that’s United Mis
souri Bank for you.
And for you, all the way.
We are ready to come to you

Bob Widtund
Oklahoma

to help you with your credit
overlines, to help you design
your pension and profit sharing
plans, to help you with your
municipal and government bond
portfolios, and to show you the
many ways our expanded agri
business department can help
you with your farm customers.
Call us at 816-221-6800.

Dave Van Aiken
Kansas

united m isso uri bank of kan sas city, n. a.
None of the others come close.

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N o rth w e s tern Banker, A p ril

1975

46
bond buyers desire to be passive
investors and the additional security
provided by a lease guarantee policy
can be the extra protection dem and
ed by them .
Lease insurance guarantees the
corporate te n a n t’s rent to the
m u n ic ip a l la n d lo rd . T he re n ta l
income can be insured for a lease
term from five to 20 years. The
am ortization period of the bond issue
is structured to coincide with the
lease term.
The lease guarantee policy is
assigned to a trustee, usually a
commercial bank acting as paying
agent and servicer for the bond
holders. Any claim paym ents will be
paid directly to the trustee and will
cover the principal and interest
Written Especially for
paym ents due the bondholders, and
The Northwestern Banker
in som e ca se s in clu d e h a z ard
insurance and real estate taxes.
By JAMES C. FLETCHER
M arket conditions were deteriora
Vice President
ting in A ugust, 1974, when CLIC
Commercial Loan Insurance Corp.
insured a $595,000 IDR bond issue
Milwaukee, Wis.
sponsored by the City of M inneapo
lis. CLIC insured a 20 year lease
between the city and Wilcox Paper
Co., of Minneapolis. Wilcox is a 52
year-old wholesale paper distributor
for a five-state upper midwest
region.
The guaranteed aggregate rent is
A RKET conditions at the portion of the risk stem s from the $1,469,875, which is equal to the
tim e of the offering often fact th a t m ost IDR issues are principal and interest due the
influence investor attitudes b a sic a lly real e s ta te fin a n c in g bondholders over the life of the issue
toward industrial revenue bonds. packages, involving a lease between and the real estate taxes. Premium
The yield m ust be structured to give a municipal landlord and a corporate costs for the lease insurance were
the investor a good return, yet not so tenant. As such, an IDR issue $47,000. T hat included the cost of
high th a t there appears to be should provide additional security to e x te n d e d c o v e ra g e , w hich will
excessive risk in the issue.
the investor other than the credit of provide paym ent of expenses in
The high risk generally associated the corporate tenant.
volved in removing the tenant, and
with ID R bonds makes some issues
In m ost instances, the ability of re fu rb is h in g an d re re n tin g th e
d iffic u lt to sell w ith o u t som e the (lender) investors to foreclose facility in the event of a default.
measure of added security. A m ajor may be sufficient. However, m ost

Lease Insurance Influences
IDR Bond Investors,

Guarantees Corporate Rent

U se of Proceeds

THIS 30,000 squ are -fo ot w arehouse and o ffic e b u ild in g is the new d is trib u tio n center for
W ilco x Paper C om pany, w hose market in clud es a five-state upper m id w est region. The
b u ild in g was financed by a $595,000 in d u s tria l revenue bond issue, sponsored by the C ity
of M in ne apo lis, and the lease paym ents have been insured by C om m ercial Loan
Insurance C o rpo ra tion , M ilw aukee.
N o rfor
t h wFRASER
e s t e r n B a n k e r , A p r i l 19 7 5
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Federal Reserve Bank of St. Louis

The bond proceeds were used to
purchase a 200,000 square foot tract
of reclaimed land in an industrial
development district operated by the
Minneapolis Port A uthority, and
construct a 30,000 square foot office
and warehouse building. The build
ing is a steel frame, one-story
structure built on reinforced concrete
footings and slab. The walls are
made of precast concrete over a
structural steel frame. The building
has a flat roof of structural steel
construction, with steel decking,
insulation and ta r and gravel roofing
scuppers, and downspouts.
Moore, Ju ran and Company, Inc.,
Minneapolis, purchased the bonds

Kbu loaned him
$100,000 on his cattle.
N ow w h at?

You shouldn’t have to worry. Regardless of how wildly
prices fluctuate, you can safely loan money on collateral of
cattle, hogs, eggs, potatoes, butter, milo or lu m b e rprovided your customer has hedged his commodities with
futures contracts on the Chicago M ercantile Exchange.
Hedged commodities are convertible into cash for a fixed
amount regardless of m arket conditions. Therefore you can
safely loan up to 100% of the hedged value. T hat’s good
for everybody—your bank and your customer.
O ur free booklet, “Price and Loan Protection Through
Hedging” is must reading for bankers with agricultural
accounts. O rder as many copies as you need with
the coupon.

MERCANTILE EXCHANGE
g I CHICAGO
444 West Jackson Blvd., Chicago, Illinois 60606
D e p t. 3 4 2 6

G e n tle m e n :

.c o p i e s o f “ P r ic e a n d
P le a s e s e n d m e .
L o a n P r o t e c t io n T h r o u g h H e d g in g .”

Name

A d d ress

C ity

S ta t e

Z ip
-J

A F E D E R A L L Y LICENSED C O N T R A C T M A R K E T

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N o rthw estern

Banker,

April

1975

48
□ THE AUTHOR has been vice president and d ire c to r of sales fo r CLIC and MGIC
Ind em nity C o rp o ra tio n ’s lease insurance program since February, 1974. CLIC is the
n a tio n ’s largest provider of com m e rcial m ortgage and lease insurance. Both firm s are
w h o lly-ow ned su b sid ia rie s of MGIC Investm ent C o rpo ra tion . Mr. F letche r joined MGIC
Ind em nity in 1968 as regional director-d evelop m ent fo r its lease program in New York and
New Jersey. He transferred to the home o ffic e in M ilw aukee in 1970. was named
assista nt vice president in 1971 and later became vice president.

Lease Insurance. . .
and sold them on comm itm ent to a
group of investors which included
commercial banks, insurance com
panies and individuals. The First
National Bank of Minneapolis was
named trustee and paying agent for
the issue, which sold at an average
interest of 7.50 percent.
Almost Entire Cost Financed
Normally, corporate tenants bene
fit the m ost from the reduced
borrowing costs associated with I DR
financing. In this case, however, the
ability to finance alm ost the entire
cost of the project was more
im portant to the corporate tenant,
according to Thomas M ast, Wilcox
president.
Moore, Ju ran and CLIC were able
to structure an issue of $595,000
based on a real estate appraisal
indicating fair m arket rental value of
about $1.25 per square foot per
annum . This was $20,000 more than
the original financing package and
perm itted Wilcox to finance 100% of
construction cost, with sufficient
funds left over to build a rail spur
and purchase additional land for
expansion. Wilcox then was able to
use cash for purchasing m aterial
handling equipm ent, eliminating the
need to increase its debt burden
beyond the am ount of the bond
issue.
Lease insurance enhanced the
m arketability for the Wilcox offering
at a time when interest rates on
general obligation bonds were rising
rapidly, recalled Thomas Moore,
m anager of the CLIC-insured issue.
The spread between general obliga
tions and the traditionally higheryielding IDRs became so small th a t
is was difficult to a ttrac t investors.
Yield Became Competitive
The security provided by lease
insurance made the yield on the
Wilcox offering com petitive with
other quality issues, said Mr. Moore.
The Wilcox issue still offered a little
more yield to the investors than the
N o r t for
h w eFRASER
stern B anker, A pril
Digitized
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Federal Reserve Bank of St. Louis

1975

American Express Adopts
New Corporate Identity
American Express Company has
unveiled a new corporate-wide identity
program, a communications system
designed to bring the company and
its services under a highly identifiable
banner. The focal point of the program is a bold new logotype de
signed to create a strong public
awareness on an international basis.

return on general obligation bonds.
A t the same time the interest rate
was not too high to make it
unm anageable for the corporate
tenant.
The Wilcox offering was an ideal
use of the I DR finance vehicle
because the project will increase
employment and generate at least
$300,000 in taxes for the city of
Minneapolis over the next 20 years.
The size of the issue was well within
the $5 million lim itation set by
Congress in 1969 to qualify the I DR
bond instrum ent for tax-exem pt
statu s. That provision limits the
AMERICANI
am ount of capital investm ent to $5
million for a three-year period before
and after construction.
The eligibility requirem ents for
lease insurance limit the aggregate
ReiseOócnywaaaHue
nyreujecTBMH
b iir o
am ount of insured rent to $5 million.
Normally, this will limit the face
am ount of the bond issue to about
$2.5 million. In some cases, hazard
The new identification system was
insurance premiums and real estate
developed for American Express by
taxes can be insured.
Lippincott & Margulies, Inc. and
its European affiliate, Lippincott &
Insurance Offers New Dimension
As pointed out earlier in the Margulies, Ltd., international con
Wilcox case, IDR financing perm its sultants specializing in corporate com
funding of 100% of construction munications, marketing and design.
costs. These costs can include the
The program is more complicated
normal fees as well as insurance than most because of the need to
premiums. CLIC limits its insurance address itself to a variety of languages
coverage to 100% of construction and cultures reflecting American Ex
costs or fair m arket economic rent, press’ worldwide activity, and also
whichever is less. IDR financing also different regulations on a country to
perm its funding for equipment; country basis, according to Walter P.
however, the proceeds used for the Margulies, president of the U. S.
purchase of equipm ent cannot be consultant firm.
guaranteed by lease insurance.
In, addition to the new logotype, a
The am ount of borrowing through new system of advertising identification
IDR bonds suggests th a t the was developed tying together Ameri
concept of collateralizing this in can Express and many of its divisions
strum ent with lease insurance has including Travel Service, Card and
added a new dimension to industrial Travelers Cheque, each having its
development throughout the coun own specific audiences and needs 4K
try. To date, CLIC has insured 54 requiring specific marketing solu
issues and has issued com m itm ents tions. In practice, these systems cor >
to insure about 30 more projects now relate with the new corporate logo to
under construction. No losses have more effectively project American
incurred on CLIC-insured bond Express Company’s association with
issues. —End
its divisions.
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Division of W alter Kidde & Company, Inc.
Cedar Rapids, Iowa 52406

W
emakemoreof thethingsyouneedthan anyoneelse intheworld.

Crop Hail Industry’s 1974 Premiums Top $ 2 5 8 Million
A CROP HAIL insurance summary for 1974 shows
that Iowa led the nation in written premiums with
volume of $46,922,546, while a total of seven of the top
10 states in premium volume are located in N o r t h w e st
ern B anker area.
The intensity of hail damage during 1974 also was
evident from the extremely high loss ratios recorded. The
loss ratios in most states exceeded those for 1973. In
Iowa, for example, 1974 losses were $42,772,343 for a
loss ratio of 91.15% . This compared to a 1973 loss ratio
of 49.08% on written premiums of $37,518,393.

State
Iowa
Illinois
Minnesota
Kansas
North Dakota
Nebraska
Texas
North Carolina
South Dakota
Montana
Missouri
Idaho
Wisconsin
Washington
Colorado
Oregon
Wyoming
Utah
Nevada

Rank By
Premium
Income
1
2

3
4

5
6
7
8
9
10
11
15
17
20
21
28
31
39
42

Statistics for the crop hail insurance industry for stock
and mutual companies are based on reports made to Crop
Insurance Research Bureau, Evanston; Crop Hail Insur
ance Actuarial Association, Chicago; American Agricul
tural Insurance Company, Park Ridge, 111., and Hail
Insurance Services, Ormond Beach, Fla. The industry
premium total for 1974 was $258,488,873.
The following chart shows figures for the top 10 states
by 1974 premium volume, as well as all states in N o rth
w e st e r n B anker area (states in bold type) and adjoin
ing midwestern states, indicating their 1974 national rank:

1974
Premiums

1974
Losses

1974
Loss
Ratio

1973
Premiums

1973
Loss
Ratio

$46,922,546
31,218,662
20,746,982
19,707,185
17,773,930
16,899,741
15,304,953
10,117,748
8,175,163
7,141,489
6,923,693
4,350,927
3,799,204
2,707,885
2,614,144
921,422
585,179
48,692
20,800

$42,772,343
29,424,824
10,343,961
12,570,397
12,016,188
7,701,654
11,088,610
8,310,034
3,853,560
7,780,124
2,670,346
581,631
3,002,136
591,096
1,149,812
53,154
98,693
18,841

91.15
94.25
49.86
63.78
67.61
45.60
72.45
82.13
47.14
108.90
38.57
13.37
70.02
21.83
43.98
5.77
16.87
38.69

$37,518,393
23,751,469
15,593,021
13,100,817
11,626,198
12,968,008
10,762,387
9,622,495
5,382,300
3,950,013
4,600,026
3,009,565
2,504,764
2,048,561
2,406,374
675,380
319,426
28,160
1,149

49.08
91.59
53.17
23.74
54.14
35.12
52.81
49.95
44.69
70.06
52.59
39.89
49.05
23.15
53.09
11.86
84.41
159.47
—

—

Directors’ and Officers’ Liability Insurance
Many believe that buying this type of cover
age is like buying automobile insurance. The
first decision is the most difficult— whether to
buy it. Once this is decided then it is simply
purchasing a policy that states— “ Directors'
and Officers’ Liability Insurance.”
This could be an error in judgment, since
there are a number of important differences
between the current policy forms. This is the
type of error (wrongful act) you are trying to
insure against. Consult . . .

INSURANCE PROGRAMMERS, INC.
3 2 7 South LaSalle Street, Chicago, Illinois 6 0 6 0 4
Tel. No. 312 9 3 9 -3 3 6 6
R o b e rt C a rn e y

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N o rth w e s te rn B an ker, A p ril 1 9 75

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Federal Reserve Bank of St. Louis

51
new a n d p e rh a p s a m ore
formidable foe, known as EFT S,
was faced by over 2,900 members of
the Independent Bankers A ssocia
tion of America as they held their
45th annual convention in Las Vegas
last m onth. B ranching and m ulti
bank holding company activity held
the spotlight at previous conven
tions.
Em bree K. E asterly, president of
Capital B ank & T ru st Company,
B aton Rouge, L a., IBAA president,
told the delegates th a t the associa
tion has participated in a Congres
sional hearing on a m oratorium bill
th a t would suspend E FT S activity
until the N ational Commission on
Electronic Funds Transfers has
subm itted its recom m endations.
“ W hen C o n g re ss c re a te d th e
com m ission,” said Mr. Easterly,
‘‘the intent was th a t there be no
action by federal agencies in this
field until the commission had
completed its report. However,
Congress left the door open a crack
by perm itting E FT S activity upon a
limited and experim ental b a sis.”
The Louisiana banker asserted
th a t the Com ptroller of the Currency
“ then swung the door wide open in
December by issuing an interpretive
ruling allowing the installation of
C u s to m e r-B a n k C o m m u n ic a tio n
Term inals (CBCTs) by national
banks w ithout regard for state
branching laws and w ithout geo
graphic restrictio n s.”

CALL to
Easterly.

order

Pres.

Embree

Independent Bankers
Elect Kenneth Benda;

New Officers

K enneth J . Benda, president,
H artw ick S tate Bank, Hartw ick,
la ., was advanced to the presidency,
succeeding Mr. Easterly. Charles O.
M addox, J r., chairm an and presi
dent, Peoples Bank, W inder, G a.,
takes over the position of first vice
president from Mr. Benda. The new
second vice president is Edw ard A.
T rautz, president, E a st Lansing
S tate Bank, E a st Lansing, Mich.
Elected treasurer for a two-year term
was W illiam P. Givens, president,
M erchants N ational Bank, Muncie,
Ind.
Following service in W orld W ar II
as a Naval officer, Mr. Benda began
his banking career in 1945 at the
H artw ick S tate Bank where he has
served as owner and officer. He has
been chief executive officer of his
bank since 1954.
The association adopted a variety

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Federal Reserve Bank of St. Louis

Show Concern Over EFTS

B y MALCOLM FR E E L A N D
Publisher

N o rth w estern B anker, A p ril 1 9 7 5

John Benesch, Am erican N at’I, Riverton,
W yo., and Alvin Olson, D ubois N at’l,
D ubois, W yo.

of resolutions, ranging from a call for
establishm ent of a national food
policy to rejection of a proposal for
allocation of credit.
B ut it was E FT S th a t gave the
convention its them e. Delegates
showed special interest in the EFTS
seminar conducted by four panelists.
The emergence of electronic banking
in N ebraska was discussed by H. L.
G erhart, president, F irst National
Bank, Newman Grove, Nebr. He
talked about the electronic term inals
installed in H inky Dinky grocery
stores by a federal savings and loan
and about the law suits by N ebras
k a ’s attorney general and others
charging th a t such installations
violate both state and federal law.

CHARLIE Starks,
Keensburg, Colo.

C itizens

State

Bank,

through com puters owned by the
governm ent or private financial
institutions.
“ We comm unity bankers m ust
find w ays to a d a p t e le c tro n ic
banking so as to best serve the
public,’’ said Edw ard A. Trautz,
president of E a st Lansing State
Bank in M ichigan, who explained
the federal governm ent’s DirectDeposit Program for social security
beneficiaries, a program which will
be implemented nationwide later this
year.
Mr. Trautz pointed out th a t in
order to participate in an electronic
paym ents system , bankers m ust
become members of an autom ated
clearinghouse. The main beneficiar
ies of an autom ated clearinghouse
E FT S Problems
will be larger banks, • conceded Mr.
A n o th e r p a n e lis t, R o b e rt E . Trautz, because costs are reduced as
K night, research officer and econo volume of electronic items cleared
m ist at the Federal Reserve Bank of increases. Nevertheless, he said,
K ansas City, Mo., said th a t in small banks m ust have access to the
designing an electronic banking electronic system .
system it is im portant to preserve
the individual’s freedom in how to
make or receive paym ents.
OUTLOOK was described by Dr. W alter
A fter discussing the background Heller (le ft) show n w ith Pres. Easterly.
an d d e v e lo p m e n t of e le c tro n ic
banking, Mr. K night pointed out
th a t m any fundam ental problems
rem ain to be solved, among them the
legality of using a savings account
like a checking account a t a
p o in t-o f-s a le e le c tro n ic te rm in a l;
sharp consumer dissatisfaction w ith
reduced personal control over fi
nances; the cost of justification of a
broad electronic system ; security
problems and the potential for
com puter fraud; and the great
potential for infringem ent upon our
basic freedoms as transactions flow
N o rth w estern B anker, A p ril 1 9 7 5

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Federal Reserve Bank of St. Louis

C. STUART Moore and Murray Moore,
S tockm e n’s Bank, Cascade, M ont.

The correspondent b an k ’s role in
helping smaller banks hook into an
E FT system was discussed by
William J . Davis, vice president and
m anager of the correspondent bank
division at American N ational Bank
and T rust Company of Chicago.
Mr. Davis said th a t correspondent
banks could help by providing a
means of access into an E F T system
through the larger b an k ’s com
puters. He added th a t a correspon
dent bank could also act as a
te c h n ic a l c o n s u lta n t to s m a lle r
banks, providing educational assis
tance and staff training.
A m ajor resolution adopted by
IB A A strongly endorses a m oratori
um bill (S. 245 and H .R . 1619) in
Congress which would stop use of
EFTS for deposit and non-preauthorized loan activities by federallyinsured institutions of all types
during the period of the E FT S
Commission Study, which extends
to October, 1976. (The American
FORUM fo r buyers and sellers was
described by Robert D. Dixon, pres., Rolfe
State Bank, Rolfe, la.

FIRST Banks of St. Joseph, M o., reception
attended by Mr. & Mrs. Carl Riggs, pres.,
T ing le y State Sav. Bk., T ing le y, la.; L. L.
Arendt, pres., G ibson Sav. Bk., G ibson,
la.; Paul Light, v.p ., G ibson Sav. Bk.;
Roger Haggerty, pres., host bank; Janet
Arendt, and Betty Light.

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DROVERS N at’l Bank, C hicago, breakfast fin d s Bernard Miller,
v.p., host bank; Neil & Jeannette Milner, exec, v.p ., Iowa
Bankers A ssn., Des M oines.

HOW ARD Peters, pres., A m erican State Bk., W essin gton
S prings, S. D.; Erling Haugo, pres., Valley N at’l Bank, Sioux
F alls; Bob Clausen, v.p ., Valley N at’l, and Art Haessig, v.p.,
Am erican N at’l Bank, St. Paul.

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Federal Reserve Bank of St. Louis

SOUTH Dakota bankers included Mr. & Mrs. Fredric Cozad &
Herbert Hudson, all of B lackpipe State Bank, M artin.

SHOW N are Carleton C. Van Dyke, pres., F irst Tr. & Sav. Bk.,
Remsen, la.; Robert D. Dixon, pres., Rolfe St. Bank, Rolfe, la.,
& F. Douglas Campbell, pres., State Sav. Bank, Caro, M ich.
N o rth w e s te rn B anker, A p ril 1 9 7 5

EFTS PANEL included (show n from left): Robert E. Knight, e co n o m ist, Federal Reserve Bank of Kansas C ity; H. L.
Gerhart, Jr., pres., F irst N at’I Bank, Newman Grove, Nebr.; Lewis I. Markus, e co no m ist from IBAA, W ashing to n, D. C.
(organizer of the panel); W illiam J. Davis, v.p., Am erican N at’l Bank & Trust Co., C hicago, and Edward A. Trautz, pres.,
East Lansing State Bank in M ichigan.

Bankers Association opposes the
m oratorium.)
“ The basic problem in m aintaining
the independence of banks is how to
arrange for the orderly transfer of
ownership and succession of bank
m anagem ent w ithout surrendering
the bank to a large m ultibank
holding com pany.”
T hat was the core of a report
presented by Robert D. Dixon,
chairm an of the IB A A ’s bank
ownership and m anagem ent succes
sion subcom m ittee, and president of
the Rolfe State Bank, Rolfe, la. Mr.
Dixon said th a t his comm ittee will
establish a forum or sem inar-type
program for buyers and sellers of
banks and for people involved in
m anagem ent succession. The date
and place for the forum is to be
announced.
Banking legislation in prospect
was discussed by Thom as C. Brickie,
IBAA legislative counsel.
Mr. Brickie labeled as regulatory
tyranny rulings by federal appoin

tees which flout Supreme Court
decisions, Congressional policy, and
the law of the land. He said IBAA
would do its best to correct such
unauthorized misuse of regulatory
power.

and food grains to stabilize prices for
the benefit of the consumer and
farmer.
W alter W. Heller, former chair
man of the President’s Council of
Economic A dvisors, told the dele
A g Picture
gates in a convention address th a t
The agricultural economic picture the country is in an economic decline
was described by P at DuBois, but did not view it as a depression.
chairm an of the IBAA agriculture“ All three forces th a t fastened the
rural America comm ittee and presi m onstrous double-digit inflation on
dent of the F irst S tate Bank of Sauk us in 1973-74 are abating in 1975,”
Centre, Minn.
said Dr. Heller, who is on the faculty
Noting the rapid decline in farm of the U niversity of M innesota.
prices within the last year, Mr.
Discussing the energy crunch, Dr.
DuBois challenged the bankers “ to H eller sa id he fav o re d A ra b
compare your b ank’s operation in investm ents in this country, with
light of your farm custom ers’ certain reservations.
difficulties. W hat would happen to
Arabs should not be allowed to
your operation if your deposits invest in any type of defensive
declined 30% last year?”
industries and they should not be
He said the farm er is caught on perm itted to boycott the Jew ish
the one hand between those who communities or Jew ish supporters.
advocate a supply and demand
The association’s 46th annual
m arket system , and on the other convention will be M arch 14-18,
hand by those who advocate supply 1976, a t the Sheraton W aikiki in
m anagem ent with a reserve of feed Honolulu.

AMERICAN N at’l Bk., C hicago, reception fin d s (from I.): Mr. &
Mrs. Tom Kniep, pres., The Poplar Grove St. Bk., Poplar Grove,
III.; Mr. & Mrs. Richard S; Durkes, pres., C ity N at’l Bank & Trust
Co., D ixon, III., & Allen & Betty Stults, ch m n ., host bank.

N o rth w estern B anker, A p ril 1 9 75

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Federal Reserve Bank of St. Louis

BANKERS Trust Co., Des M oines, breakfast (from le ft): Tom
W right, pres., & Ben Eilders, sr. v.p., host bank; James Lipton,
exec, v.p ., Ida C o un ty St. Bk., Ida Grove, la., & Ben E.
Summerwill, pres., Iowa St. Bk. & Tr. C o., Iowa C ity.

Forms New Chicago
Insurance Corporation
Richard T. Hepworth, former presi
dent of Financial Insurance Service,
Inc., and one of
the founders of
that company, has
formed a new
insurance corpo
ration under his
own name. R. T.
Hepworth Com
pany will be head
quartered in the
Chicago area at
R. T. HEPWORTH
2340 River Road
in Des Plaines.
Opening at the same time and at the
same address will be Insureco Mid
west, Ltd., a joint venture with Insure
co, Inc. of Burbank, Calif. Mr. Hep
worth will be in charge of that compa
ny’s business in all areas east of the
Rocky Mountains.
The Insureco System, now five
years in operation, is an automated
insurance management concept — a
computerized monitoring system that
reports the insurance status of auto,

truck, trailer and other types of loans
on movable chattels.
The United California Bank was the
first to adopt the Insureco System
which now operates in all 42 of its
finance centers. Twenty-two banks
affiliated with Western Bancorporation
are expected to be in the Insureco
System soon. Insureco is now ex
panding it’s computer capacity to
enable it to service many Eastern
and Midwestern banks which are
expected to enroll through the efforts
of R. T. Hepworth Co. and Insureco
Midwest, Ltd.
Mr. Hepworth, an executive of
Scarborough & Co. and Marsh &
McLennan, Inc. before his association
with Financial Insurance Service,
has spent most of his professional life
in the banking insurance field. He was
instrumental, in developing kidnapransom insurance for bankers and has
contributed many innovations to the
field of single-interest coverages.
Asked about his immediate plans
for new business, Mr. Hepworth said,
“We are prepared to program the In
sureco System for banks of virtually

any size, anywhere. In addition to the
computer track that makes it efficient,
we will provide a participating de
ductible coverage. That means that the
borrower as well as the bank can
participate in what was formerly
single-interest insurance. With the
borrower sharing the deductible, banks
can avoid permanent repossession
losses in as many as 69% of all cases.”
The R. T. Hepworth Company
plans to offer a broad range of bank
insurance coverages, adapting to their
constantly changing needs.

Indiana Bank Stays Open
24 Hours Every Day
Colonial National Bank in New
burgh, Ind., now provides aroundthe-clock banking complete with per
sonal teller service.
Customers get 24-hour service by
using the bank’s mini-lobby which is
separate from the main office, or
through the bank’s drive-in banking
facility equipped with a drive-in
window and three Diebold Visual Auto
Teller RI remote banking systems.

82nd ANNUAL FINANCIAL STATEMENT
December 3 1 , 1974
ADMI T TE D

v-y

Àx

ASSETS

Bonds: (Amortized)
Government ................................... $ 3,889,814
State, County and Municipal . . . . 19,085,935
All O th e r........................................ 9,266,434 $32,212,183
Stock: (Market — N.A.I.C.)
Preferred.........................................$
67,325
Common .........................................
371,301
438,626
Real Estate — Including Home Office Building . .
800,065
Cash and Bank D eposits.......................................
843,602
Agents Balances and Reinsurance Receivable . . . . 5,736,266
Interest Due and A ccrued...................................
427,315
All O th e r................................................................
68,974
TOTAL ........................................................... $40,557,031
MAX D. RUTLEDGE, President

L I A B I L I T I E S

AND

S URP L US

Reserves for
Losses and Loss Expense...................................... $ 5,866,040
Contingent Commissions ....................................... 2,425,791
Taxes (Other Than Federal Income) ..................
452,886
Unearned Premiums ...........................
3,817,156
Funds Held Under Reinsurance Treaties............
568,267
Reinsurance Balances Payable ............................. 2,874,006
All O th e r................................................................
201,147
TOTAL LIABILITIES .................................. $16,205,293
Surplus as Regards Policyholders ............................... 24,351,738

TOTAL ........................................................... $40,557,031
DALE DEN HARTOG, Treasurer

ALBERT RUTLEDGE, Vice President & Secretary
Home Office 2 3 2 3 Grand Avenue, Des Moines, Iowa 5 0 3 1 2
1‘A

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19 7 $

Are You Ready for Disaster?
JOHN MUSATTO
Account Executive
Scarborough and Company
Chicago, III.
VV7 HAT happens if your bank is
** damaged or destroyed by fire, ex
plosion, earthquake or other disaster?
Obviously, you carry insurance on the
building and contents, but do you have
emergency plans that can be imple
mented so your operations can con
tinue — though perhaps not as
smoothly as before?
Planning for emergencies is the most
important element in handling an
emergency. Any disaster or emergency
plan has to be thorough and thorough
ly communicated to bank personnel.
Questions
Some general questions may be used
as guidelines to aid management in
determining the adequacy of an exist
ing plan or in drawing up one for the
first time:
Who would make major repairs if
damage to the bank occurs?

Have alternate ways to serve cus
tomers in the event the bank building
is destroyed completely — or even
partially — been arranged?
Have the availability, cost, and us
ability of alternate facilities been
checked in the event the bank building
is partially damaged or completely
destroyed?
Has a check list been made of things
to do as the threat of disaster grows
— possible flood, wave of violence, fire
spreading?
Have key employees been briefed
in steps to take in an emergency?
Is it clear to all directors, officers,
and employees who would take charge
if the chief executive officer is not
available?
Are copies of key records kept
someplace other than in your bank
building?
Have arrangements with suppliers or
correspondent banks for equipment
and personnel been made in the event
of a disaster?
What supplies are currently used

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m o n th ly b u lle tin helps you m ake it w o rk . Give y o u r fa rm c u s to m e rs
th is cha nce at g re a te r p ro fit w h e n th e m a rk e t rises, and p ro te c tio n
ag ainst losses w h e n it d ro p s. W rite o r call us fo r details.

. ---------- --------------- -----FREE B I-M O N T H L Y
M A R K E T REPORT
A nalysis o f c o m m o d itie s
and fo re ca sts,
fre e to you and fa rm e rs.

Member, principal commodity
exchanges. Call Lee Brooks;

(6121 340-6961

Dependable Commodity
Services, Inc.
2120 IDS Center, Minneapolis, Minn 55402

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197S

and who are the vendors?
As supplies, particularly printed
forms, are difficult to obtain on short
notice, has an off-site back-up of criti
cal supplies been provided?
Who has the back-up samples of
each supply item and where are they
located?
Has a back-up copy of the Disaster
Plan been stored in an off-site loca
tion?
Is there insurance protection in
force covering the additional costs of
doing business at the original or a sub
stitute location after the premises
and/or its contents have been dam
aged or destroyed?
Insurance

An important element in your con
tingency planning is adequate in
surance protection. Obviously, no
disaster plan, no matter how compre
hensive or elaborate, should be relied
on exclusively to your possible detri
ment. Insurance is needed to back up
and supplement your disaster plan
to cover the additional cost of doing
business after the premises, either the
building or its contents or both, have
been damaged or destroyed.
This particular form of insurance
protection needed is called “Extra Ex
pense” insurance.
As part of your emergency plan
ning, extra expense insurance is
needed:
• To enable the continuance, as
nearly as practicable, of the normal
conduct of business;
• To retain good will by continuing
to offer banking services;
• To sustain the pressure of com
petition during business suspension;
• To conform with various state
banking acts and regulations which
make it mandatory for banks to remain
open for business, except on holidays.
Scarborough & Company, Bank In
surance Counselors and Specialists, of
fers Extra Expense insurance on an
“All Risk” form. While other policies
may cover only losses by fire, lightning,
extended coverage and vandalism and
malicious mischief, the All Risk form
covers loss from ANY cause includ
ing perils not covered by other poli
cies. These might include flood, earth
quake, explosion, sprinkler leakage or
water damage, collapse of building, etc.
— End

"We have been very pleased with our new building . . .
We th in k this b uilding program is a real asset to the
com m unity. Bank Building did a real fine jo b in handling the
program fo r us. It takes a lot o f coordination to manage a
program like this, and the results have been gratifying to us."
Sam Bailey, President
Broken Bow State Bank
Broken Bow, Nebraska

W e're the people who organize growth.

Bank Building
Corporation
1130 Hampton Avenue • St. Louis, Missouri 63139
Doug Carr
Omaha

Roy W ingers
W aterloo

(402) 89 5-0 2 1 1

(319) 2 5 3 -6 9 6 9

I want to know more about Bank Building Corporation
in the area of:
□ Remodeling □ New Building □ Branch
□ Market Study
Name_________________________________________________________
In stitu tio n __________________________________________ _
Address_______ ________________________________________________

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Federal Reserve Bank of St. Louis

City

___________________ State_________________ Z ip ___________

Dawson Hail, Fargo, Reports
Record Risk Volume in 1974
Dawson Hail Insurance Company of
Fargo, N.D., completed its 58th season
with a record vol
ume of crop hail
insurance. Presi
dent Jim Dawson
reports that the
firm carried $75,000,000 in crop
risks in N o r t h
Dakota, Minneso
ta, South Dakota,
Iowa, and Nebras
J. DAW SON
ka.
Over 500 bank-related independent
insurance agencies produced the bulk
of the business in the five state area.
Dawson Hail employs 40 adjusters on
a per diem basis during the hail loss
season. These adjusters receive special
training at the Dawson Hail Adjusters
School and through the use of the
Dawson Hail Adjuster’s Guide, a 500page instruction book for adjusters that
is in use in 19 foreign countries.
Policies in 1975 will be issued in

examine bank customer records is
“grave cause for concern.”
The Supreme Court ruling (U.S.
v. Bisceglia), announced February 19,
gives the IRS authority to issue the
“John Doe” or no-name summons to
a bank for the purpose of examining
a broad range of customer records.
This could be done to discover the
identity of an unknown individual
who might have been a party to a
transaction suggesting possible lia
bility for unpaid federal taxes.
The case came to light when the
IRS sought to examine the cash ex
change and deposit records during
a 30-day period of all customers of
the Commercial Bank of Middlesboro,
Ky. The examination was conducted
to discover the identity of the person
Supreme Court Decision
or persons who deposited or exchanged
Causes Bankers Concern
Willis W. Alexander, executive $40,000 in old $100 bills and to
vice president of the American determine whether an unpaid liability
Bankers Association (ABA), said for federal taxes existed.
“Because of our concern with the
recently that the U.S. Supreme Court
importance
of preserving the con
decision giving to the Internal Revenue
fidentiality
of
bank customer records
Service (IRS) the power to use a
so-called “John Doe” summons to against overly zealous or unauthorized
government investigation, the ABA
filed an Amicus Curiae brief in support
of the bank’s refusal to make these
records available,” Mr. Alexander
stated.

the name of Dawson Hail Insurance
Company and the Regent Insurance
Company. Lloyds of London carries
31 % of the insurance pool and along
with 17 other companies, this pool
provides each policy with financial
stability and Dawson with unlimited
capacity.
Dawson Hail Company officers and
personnel include, James Dawson,
president, who is also a director of the
Hunter, N.D., Security State Bank;
Robert Dawson, vice president, who
is also director of the First National
Bank of Fargo, N.D.; Lyle Askerooth,
vice president; Pearl Burley, treasurer;
Tom Dawson, director, and Charles
Fosberg, special agent.

To Head ABA Bank
Investments Division

Prestige
Programs Pay
Specialists in
□ Credit Life Insurance
□ Credit Disability Insurance
□ Personalized Claim Service
□ Sales Training by
Experienced Personnel

More Money in
Your Pocket
1300 North Meacham Road
Schaumburg, Illinois 60172

USLIFE CREDIT LIFE INSURANCE COMPANY
Credit Insurance D ivision for
General United Life Insurance Com pany
Des M oines, Iowa

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1975

The investments division of the
American
Bankers
Association
(ABA) has elected D. Dean Kaylor,
senior vice president of the National
Bank of Detroit, as its chairman and
Samual B. Stare, senior vice president
of Union Bank, Los Angeles, as its
vice chairman for 1975-76.
Both men will assume their new
positions at the conclusion of the
1975 ABA Convention next October
in New York City.

Elected President of
ABA Trust Division
Ray F. Myers, executive vice presi
dent for trust and investment services
for the Continental Illinois National
Bank & Trust Co., Chicago, has been
elected president of the trust division
of the American Bankers Association.
Elected to succeed Mr. Myers as
vice president of the trust division
is James W. North, executive vice
president of the Chase Manhattan
Bank, New York City,

Ubar A go
Yòu Didn’t
Know Our Nam e
Today
We’re Number
2
Last year we did m ore than change our name.
In 1974 the insurance s u b s id ia rie s of U nited G uaranty C o rp o ra tio n m oved s o lid ly into
the num ber tw o p o sitio n in the private m ortgage insurance ind u stry m easured by new
re sid e n tia l insurance w ritte n .
It means we m ust be doing som ething right.
M aybe service.

U n ite d
Guaranty Corporation
826 North Elm, Box 21567, Greensboro, North Carolina, 27401/(919) 273-6961
Contact: United Guaranty Residential Insurance Co., P.O. Box 778, Bettendorf, Iowa 52722. In Iowa (800) 292-0047.
In States bordering Iowa (800) 553-8976.
United Guaranty Residential Insurance Co., 300 Morgan Building, Portland, Oregon 97205,
In Washington and Idaho (800) 547-1064, In Oregon (800) 452-7697.
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197S

Introduces New Mortgage Insurance Program
program providing special
A NEW
mortgage insurance coverage for
lenders participating in government
mortgage loan programs has been
introduced by Continental Mortgage
Insurance, Inc., Madison, Wis., a
subsidiary of CMI Investment Corp.
Under the new program, described
by the company as “Letter Perfect
Protection,” lenders planning to sell
mortgages to the Federal National
Mortgage Association, Government
National Mortgage Association or
Federal Home Loan Mortgage Cor
poration may obtain insurance cover
age tailored to the requirements of the
three agencies at a reduced premium
rate.
FHLMC and GNMA require that
conventional mortgages which they
purchase carry private mortgage in
surance on the amount exceeding 75%
of loan to value ratio while FNMA
requires insurance on the amount
exceeding 80%.

first year and Va % thereafter).
On 80 to 90% loans, the single 15year premium has been reduced to 2%
(compared with 2-Va % for standard
20% coverage) while the annual
premium has been reduced to 4/10%
the first year and Va % thereafter.
For loans to be sold to FNMA,
CMI’s new program provides 16%
insurance coverage of 90 to 95% loans
and 12% coverage of 80 to 90% loans.
Single premium for the higher ratio
loans is 2-Va % while the annual
premium is 5/8% the first year and
Va % thereafter. Single premium on the
80 to 90% loans is 1.85%, while the
annual premium is a constant Va %.
In conjunction with its program for
FHLMC, GNMA and FNMA in
sured mortgages, CMI has also intro
duced a new standard coverage under
which the company insures the top
10% of mortgages having loan to value
ratio of 80% or less for an annual
premium of .15%.

Coverages

CMI’s new program provides 22%
coverage of 90 to 95% loans and 17%
coverage of 80 to 90% loans to be
sold to FHLMC or GNMA. On the
90 to 90% loans, the single 15year premium has been reduced to
8/10% the first year and Va % there
after. (For standard 25% coverage,
the single 15-year premium is 2 - 3/ a %
while the annual premium is 1% the

Options

Lenders using CMI’s standard 20
or 25% coverage have the option of
converting the insurance to the lower
government minimums, at the lower
premium rate, on mortgages which
they decide to sell to one of the
government agencies.
To further assist lenders, CMI
has developed a single-page appli

SOLID STATE

D TIME and TEMPERATURE D
DAKTRONICS
INC.

DAKTRON1CS
INC.

DISPLAYS
V

m m m M , COMMUNITY fj

T RUS T

B A N K - ! jff

■ * * * . '■ .

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DAKTRONÎCS
INC.

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Call or Write
tor
Complete information

Banker,

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Federal Reserve Bank of St. Louis

1975

;

SiSfes .

DAKTRONICS, INC.
P.O. Box 299
BROOKINGS, S , D. 57006
(605) 692-6145

cation form on which all rates and
coverages are detailed in simple chart
form.
CMI now offer a free computer
service enabling lenders to match their
loans with FHLMC underwriting re
quirements and help to eliminate
errors that could result in rejections.
The company said that its new
rates and coverages have been filed in
all 50 states and will become effective
as soon as approved by the individual
state insurance departments. They
had been approved in 38 states as
of March 1.

Chicago Bank Offers
Special Discount Coupons
With more people looking for re
bates and special discounts these days,
The First National Bank of Chicago
has come up with a way to boost
saving for a rainy day and spur money
saving spending at the same time.
The bank is offering a handy pocket
folder of “Get Ahead” coupons to
customers depositing $200 or more in
a new or existing savings account.
In the money-saving offer are 36
coupons for special premiums and
discounts ranging from $1 on a $20
grocery order to 50% on tickets to
Chicago Cougars games, with 10, 20
and 30% discounts on other items
in between. The coupons are good at
over 2,000 Chicago area appliance,
carpet, tire, clothing, jewelry, lumber,
flower, shoe, drapery, drug, paint,
hardware and auto stores, as well as
theaters, restaurants, rental cars, mo
tels and tours.
“This program is designed to
encourage both thrift and economy,”
said Alex W'. (Pete) FIart, vice presi
dent of the bank’s retail marketing
division.

Fed Proposes To Amend
Regulation Y
The Board of Governors of the
Federal Reserve System recently pro
posed
to amend Regulation Y —
regulation of bank holding companies
— to clarify the circumstances under
which a bank holding company may
acquire assets of another company
without prior Board approval,
The amendment proposed by the
Board would require prior Board
approval for any acquisition of all
or substantially all of the assets of
a company, or a subsidiary, division,
department or office of a company.

To be a going, growing airline,
you’ve got to keep doing things
better. That’s why you’ll like
w h at’s new on O zark Air Lines.

More jets. More nonstop flights.
Colorful new interiors. More
legroom, more comfort, better
looks. Our meals? Ask an Ozark
passenger about our new
International Flair dinners. Or our
wlne-and-cheese baskets. Fly
on Ozark Air Lines; you'll see.
We're going all out to give you the
kind of flight you're looking for. Which
is one good reason we're one of
America's fastest-growing airlines.

Cali your travel agent or

OZARK

AIRLINES

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1975

~j|
Copeland Schmidt

D a ta P ro c e s s in g D iv is io n ,B e v e r ly B a n c o r p o r a tio n
1 3 0 8 W . 1 0 5 th S t., C h ic a g o , 111. 6 0 6 4 3
D e a r C ope:
P le a s e s e n d m e c o m p le te in f o r m a t i o n o n h o w w e
c a n e c o n o m ic a lly c o m p e te a n d b e tte r s e rv e o u r
c u s to m e rs t h r o u g h B e v e rly ’s d a ta p r o c e s s in g s y s te m s.
N A M E _________________________ ____________________—

Data Processing Division, Beverly Bancorporation. A
recognized leader in hank automation. Let us show you
how your hank can economically compete and better serve
your customers.
Return the coupon or call Copeland Schmidt direct at
(312) 881-2500 and we’ll give you the straight facts. It’s
that simple. What more can we say?

B A N K ___________________________________________________

! D aTa PROcessiNG d iv is io n ,

A D D R E S S _____________________________________________

| BeveRLY BaNCORPORaTION, INC.

STATE _

PHONE

Z IP

1308 W. 105th St., Chicago, 111. 60643, 312-881-2500
WE DO TODAY WHAT OTHERS PROMISE FOR TOMORROW

what more can we say?
“I’m excited about the fast changes
in the EFTS area, and being with
Beverly, we bought the data proces
sing capability we need now and have
available to us any future capability
we deem necessary, to compete and
better serve our customers."
David A. Shern
President
Mid America Bancorporation, Inc.
St. Paul, Minnesota

“With the on-line central information
file provided through Beverly Bancorporation’s Data Processing Division
system, we have integrated our cus
tomer information which has helped
make our marketing dollars much
more productive.”
Robert Effinger
President
Oak Brook Bank
Oak Brook, Illinois

“Beverly’s Data Processing Division
service staff knows the processing
problems of a smaller bank and that
expertise is both important and essen
tial to us.”
James B. Lund
President
Matteson-Richton Bank
Matteson, Illinois
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1975

“Our decision to go with Beverly’s
Data Processing Division was simple
— they gave us the most for our data
processing dollar.”
Donald L. Menefee
Executive Vice President
Mid-West National Bank
Lake Forest, Illinois

“Through Beverly Bancorporation’s
unique regional data processing sys
tem, a small independent bank like
ours has the capabilities of large so
phisticated machinery and programs
which we obviously couldn’t afford to
assemble ourselves.”
Ora G. Jones
President
Goodhue County National Bank
Redwing, Minnesota

84th Annual Convention -

Noon

Illinois Bankers Association
May 4-6, 1975

P. M.
6:00
6:00

Palmer
House,
Chicago

W. O. KURTZ
Pres.

R. C. SCHRIMPtE
Exec. V.P.

BOUT 1,000 bankers and wives are expected to at
A
tend the 84th annual convention of the Illinois Bank
ers Association May 4-6 at the Palmer House in Chicago.
William O. Kurtz, president of the IB A and president,
Metropolitan Bank & Trust Co., Chicago, has announced
a distinguished list of speakers to address the convention.
They include The Hon. Henry C. Wallich, member of the
Board of Governors, Federal Reserve System, Washington,
D. C.; The Hon. James E. Smith, administrator of national
banks, Washington, D.C., and The Hon. Michael J. Howlett, Secretary of State, Springfield, III.
Other feature speakers will include George Auble, Chi
cago, and James Edward True, St. Louis, who will give an
“EFTS Update,” and R. William McNealy, group vice
president with American Motors Company, Detroit.
The nominating committee had submitted the following
names for 1BA officers at press time: President— Arthur
F. Busboom, president, Bank of Rantoul; First Vice Presi
dent— Ray G. Livasy, president, Millikin National Bank,
Decatur; Second Vice President (three candidates to date)
—B. F. Backlund, president, Bartonville Bank; Joseph
Connelly, president, Westchester Trust and Savings Bank,
and John R. Montgomery III, president, Lakeside Bank,
Chicago; Treasurer— G. Wallace Rich, president, First Na
tional Bank, Cobden.
The complete program follows:

Sunday, May 4
Registration, Palmer House.
Exhibit areas open.
Past Presidents and Treasurers Dinner.
Dinner for wives of Past Presidents and Treasur
ers.

A ^
9:30

Monday, May 5
First General Session.
Presiding— William O. Kurtz, president, Illinois
Bankers Association; president, Metropolitan
Bank & Trust Co., Chicago.
“A View from the Comptroller’s Office”— Hon.
James E. Smith, Administrator of National Banks,
Washington, D. C.
“EFTS Update— Progress and Plans”— George
Auble, director of payment systems, Midwest
Automated Clearing House Association, Chicago,
and James Edward True, executive director, Mid
western America Payments Exchange, St. Louis.
“75th Anniversary Message from AIB”— George
Alexander, executive councilman, AIB District
11; Continental Bank, Chicago.
12:00 50-Year Club Luncheon.
12:00 Ladies Luncheon.
P. M.
3:30 Council of Administration Meeting.

A^
9:30

Tuesday, May 6
Second General Session— Pres. Kurtz presiding.
“A Positive View of the Economy”— Hon. Henry
C. Wallich, Board of Governors, Federal Reserve
System, Washington, D. C.
“State of the State”— Hon. Michael J. Howlett,
Secretary of State, Springfield, 111.
Address— R. William McNealy, group vice presi
dent, North American marketing, American Mo
tors Company, Detroit, Mich.
12:00 Luncheon.
P. M.
2:00 Annual Meeting and election of officers.
7:00 Banquet and Dance.
Music by Glenn Miller Orchestra, directed by
Buddy Morrow.— End

You Will See Them at the 84th Annual
Illinois Bankers Association Convention
'T ' HE following metropolitan bankers
and service and equipment deal
ers have indicated that they will be
attending the Illinois Bankers Asso
ciation’s 84th annual convention in
Chicago May 4-6.
New York
Bank of New York: Pete Kronberg,
assistant treasurer.
Chase Manhattan Bank: Ernie
Church, assistant treasurer.
First National City Bank: Donald
P. Fogerty, account officer.
Irving Trust Company: Francis W.
Rode, III, assistant vice president.
Manufacturers Hanover Trust Coni
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Federal Reserve Bank of St. Louis

pany: George R. Bennett, vice presi
dent, and John F. Richards, assistant
vice president.
St. Louis
First National Bank: Clarence C.
Barksdale, president; Richard F. Ford,
executive vice president; Paul M. Ross
and Frank K. Spinner, senior vice
presidents; Richard M. Rathgeb and
Michael D. Flier, assistant vice presi
dents, and Charles L. Mountz, region
al banking representative.
Mercantile Trust Company: Lynn
LI. Miller, executive vice president;
James A. Smith and David T. Stoecker, vice presidents, and Jerald L.

Fleschner, assistant vice president.
Bank Equipment and Other Firms
Bank Building Corporation: George
Cardis and Richard Engstrom, con
sultant services managers, northern
division; Lyle McEldoon and Howard
Rapp, consultant service managers,
central division.
Bank Consultants of America: R. L.
Schutt, Doug Baker, Wayne Shaw,
Harry Myers, Marvin Knedler, and
Chuck Loop.
HBE Bank Facilities Corporation:
Ted Luecke, president; Francis E.
Howell and Robert J. Burk, client
service representatives.
SLT Warehouse Company: Bob
Dolan and Larry Morice.
N o rthw estern

Banker,

A p ril

1975

Illinois N e w s

Glendale Heights Bank
Elects President
David L. Brewer has been elected
president and director of the First Se
curity Bank of
Glendale Heights.
Formerly execu
tive vice presi
dent, Mr. Brewer
has been chief
executive officer
of the bank since
its inception in
April of 1972.
Prior to that he
D. !.. BREWER
served as assistant
vice president of the Bank of Naper
ville. He is a 1964 graduate of North
Central College in Naperville.

Bank of Sugar Grove
Holds Grand Opening
More than 2,000 people recently
were welcomed to the grand opening
of the new Bank of Sugar Grove,
Cross Street and Illinois Route 47,
with an abundance of free refresh
ments, balloons, pens and carnations.
The opening included a special free
checking account offer for new
customers which entitled individuals

owner of the Manor at Willoway in
Naperville; Leigh Sauer, Jr., of
Sugar Grove, a farmer; and G. Ward
Steams, president of the Bank of
Naperville.

To Head DeKalb Bank
John R. Kuiken recently was elected
president of the First National Bank in
DeKalb. H e n r y
M. Meier, presi
dent and v i c e
chairman, became
chairman of the
board.
Mr. Kuiken, a
native of Illinois,
joined the bank
in O c t o b e r of
1959 to head the
agricultural loan
division. His field expanded rapidly to
mortgage and business loans and then
into the restructuring of the data pro
cessing operations for new fields of
computer activity.

Executive Changes at
Commercial Nat’l, Peoria
The formation of a commercial
banking division to be headed by
Robert T. Stevenson, Jr., vice presi
dent, has been announced by David
E. Connor, president of the Com
mercial National Bank of Peoria.
Included in the new division is the
metropolitan department to be headed
by John E. Weidman, vice president
and former head of the bank’s com
mercial loan department. Another new
department, to be known as the
Illinois department, will have responsi-

division will be the real estate depart
ment headed by Robert W. Iber,
assistant vice president, Also to be
supervised by Mr. Stevenson will be
the loan review and administration
department headed by Ralph N. Kent,
assistant vice president, formerly re
sponsible for the credit and note de
partments.

Chicago News
AMUEL
Sax, chairman and
S
chief executive officer of the Ex
change National
Wm.

B a n k , has an
nounced the elec
tion of five offi
cers. They are
Bernard
W.
Owens, commer
cial banking, to
v i c e president;
Jerome Ex and
Donald H. Reisse,
B. W . OWENS
auditing and John
F. Fitzgerald, commercial banking, to
assistant vice presidents; and Theodore
Yosha, to manager of data processing
in theinternational banking depart
ment.
*

Seaway National Bank has elected
Ernest Bush and Howard C. Medley,
Sr, to its board of directors, according
to Richard Linvard, president.
Mr. Bush is owner and president
of Bush Construction Company. Mr.
Medley
is
president of Medley’s
Moving Van Lines.
*

N o r tfor
h wFRASER
e s tern Banker, April
Digitized
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Federal Reserve Bank of St. Louis

1975

Janice L. Barnay recentlyjoined the
Michigan Avenue National Bank as
assistant director of marketing, accord
ing to Robert F. Ghana, vice president
and marketing director. Ms. Barnay
previously was with Central National
Bank in Chicago.

G. WARD Stearns, chmn., Bank of Sugar
Grove, Arlyn jah r, city mayor and Fred
erick R. Mason, c.e.o., prepare to cut the
ribbon signifying the official opening of
the new bank.

opening an account before April 1 to
no service charge checking until April
I, 1976.
Total authorized capital for the
new bank was $650,000 which was
raised through the sale of 26,000
shares of stock sold at $25 per share.
Directors of the bank are: John
J. Case, president of Agrinetics,
Inc.; Russell E. Flanders of Elburn,
a farmer; Eldon H. Hatch, a realtor;
Raymond L. Larson of Maple Park,
a farmer; James Polivka of LaFox,

STEVENSON

HESSING

HART

bilities for correspondent bank ac
counts, agri-business relationships and
commercial customers outside the TriCounty area. Brock L. Hessing, vice
president in the commercial loan
department, will head this department.
Harley E. Hart, vice president in
charge of the time-pay department,
will head a new dealer finance de
partment. Also included in the new

:Js

LaSalle National Bank has an
nounced the following promotions to
assistant vice president; Thomas H.
Benjamin, Christopher J. Koegei and
Michael Reba, municipal bond depart
ment, and Robert E. Eredenburgh,
national division.
Other promotions include Linda J.
Bobert to investment officer, munici
pal bond department and Rodney E,
Miller to loan officer, metropolitan
division A.

"A m an’s got to get som e m ud on h is b oots
before lie’s any u se out here.”
l h e city is the city.
The country is the country.
T hat’s a difference we’ve always
appreciated at American National.
And so we offer our correspon
dents several unusual services
specially developed to meet the
needs of banks outside the big city.
For example, we have an
automated bond accounting service
that can streamline your investment
pricing, and the accounting on your
whole investment portfolio.

And we can offer you a whole range of
management tools, from expense
reporting systems to employee
benefit programs.
W e’ve also staffed our corre
spondent department with people
who understand the unique needs
of a small city bank. From personal
experience.
One of them is Mike Byrne.
And we hope you’ll call him the
next time you need the kind of help
that only a big-city bank can offer.

THE
AND TRUST COMPANY OF CHICAGO
L aS alle a t W a sh in g to n /L a S a lle a t W a c k e r 6 0 6 9 0 /P h o n e (3 1 2 ) 6 6 1 '5 0 0 0 /M e m b e r FD1C

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Federal Reserve Bank of St. Louis

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Banker, A p ril

197S

Illinois N e w s

To Head Willowbrook Bank
First Security Bank, Willowbrook,
now under construction at 100 E.
Plainfield R o a d ,
h a s announced
the appointment
of J o s e p h P.
Geary III of Bev
erly Hills to chief
executive officer.
Mr. G e a r y ,
who will carry the
title of executive
vice president and
p GEARY
c a s h i e r , wa s
formerly vice president assigned to the
commercial lending division of the
South Shore National Bank in Chicago.
He had been with that bank since
1963.
The new bank will be located in an
8,000 square foot, building on two
levels with ample drive-up and park
ing facilities.
BMA Plans 15th Chapter
In Central Illinois
The 15th Bank Marketing Associa
tion chapter recently was formed in
Central Illinois.
The Central Illinois chapter serves
banks in the Peoria, Bloomington,
Springfield, Pekin and Galesburg
areas of the state.
Newly elected officers are: president
— Hazen M. Allen, vice president,
Commercial National Bank, Peoria;
first vice president — Ron Sides,
marketing department, Springfield Ma
rine Bank; second vice president
— H. Ray Moore, vice president,
First Galesburg National Bank and
Trust; Secretary — Rosalie Danielson,
marketing department, Citizens First
National Bank, Princeton; and trea
surer — Robert H. Baker, vice presi
dent, Jefferson Trust and Savings
Bank, Peoria.
Chapter directors are: Ray E.
Baxter, assistant vice president, Peo
ples Bank of Bloomington; Susan G.
Horn, director of marketing, Citizens
National Bank of Macomb; Jack
Ewing, assistant vice president, Union
National of Macomb; Donald Ras
mussen, assistant vice president, Herget National Bank of Pekin; Ray
Thuranger, assistant vice president,
First National Bank and Trust Com
pany, Pekin; Eugene E. Janssen,
assistant vice president, South Side
Trust and Savings Bank, Peoria;
Penny Klein, marketing division, Jef
ferson Trust and Savings Bank, Peoria;

N o rth w e s tern B anker, A prii
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Federal Reserve Bank of St. Louis

1975

Shirley A. Garzee, marketing depart
ment, South Side Trust and Savings
Bank, Peoria; Fred Block, Block and
Company, Washington; Sally Givens,
Ross Advertising, Peoria; William
C. Rodgers, assistant vice president,
Commercial National Bank, Peoria;
and Richard K. Riedel, sales repre
sentative, First National Bank, De
catur.

Sporer Heads IBA
Consumer Credit Division
Thomas A Sporer, vice president of
the American National Bank in Chica
go, was elected
president of the
Illinois Bankers
Association (IBA)
consumer credit
CPI m m
division at the di
vision’s a n n u a l
meeting at the
Peoria Hilton Ho
tel recently.
His term be
T. A. SPORER
gins July 1, 1975.
Other officers elected include first vice
president, Robert G. Streuter, vice
president, City National Bank, Murphysboro; second vice president, Law
rence A. Wilson, vice president, City
National Bank and Trust Company,
Dixon, and secretary, Norman C.
Peterson, IBA, Chicago.
Executive committee members elect
ed for a three-year term are B. J.

Receives Award

THE Honorable Edward Brooke (left),
U. S. senator from Mass, joined by V. P.
Nelson A. Rockefeller (center), congratu
lates Dempesy J. Travis, Chicago busi
nessman, recipient of a Black Enterprise
Achievement Award from Black Enterprise
Magazine. Mr. Travis is a dir. of Seaway
N at’l Bank, Chicago, heads Sivart Mort
gage Company, is founder and pres, of
Travis Realty, and is a former pres, of
the United Mortgage Bankers Assoc.

King, assistant vice president, Herrin
Security Bank and James N. Brasel,
assistant vice president, First Na
tional Bank, Woodstock. Elected for
a two year term is Robert Ritter,
manager, instalment loan department,
Bank of Pontiac.
Mr. Sporer’s career began somewhat
differently than most of the IBA
division’s presidents. From 1945-47
he held the position of “player” for
the New York Yankees. In 1947 his
financial career began as vice presi
dent of Universal C.I.T. Credit
Corporation. He entered banking in
1968 as office manager, marketing
and financial services division at the
American National Bank, Chicago.
In 1969 he served as instalment loan
officer; 1969-72 he served as second
vice president and from 1972 until
present as vice president and division
head.

To Organize CitiBank
In Champaign
A permit to organize has been
issued to the CitiBank in Champaign,
303-311 West Kirby Street, Cham
paign, Champaign County.
Organizers are: Durward G. Judy,
Kenneth W. Stotler, John L. Franklin,
Lloyd R. Worden, Jr., Lewis H.
Clausen, all of Champaign.
2 Promoted at
Naperville Bank
John Herod has been promoted
to vice president and cashier of the
Suburban Bank of Naperville. Prior
to joining the bank, Mr. Herod spent
14 years in operations at LaSalle
National Bank.
Also announced was the appoint
ment of Betty Koudelik as assistant
cashier. She formerly was head teller
at Citizens National Bank of Downers
Grove.
Bank of Elmhurst
Names Vice President
Rita M. Hoffmann has been pro
moted to vice president in charge of
real estate lending at the Bank of Elm
hurst, according to William T. Giova,
bank president.
Mrs. Hoffmann has been with the
bank since it opened in 1969 starting
as a note teller. She most recently
was vice president. Prior to joining
the bank in 1969 she was associated
with North America Federal Savings
and Loan.

Bank on
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o p p o rtu n itie s.
That makes us different.
W e ’re big on the little th in gs fo r
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We know that som etim es small
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Where you count.

M E R C R n n is
B R fK
Central Group, Banking Dept. • Mercantile Trust Co. N.A.
St. Louis, Mo. • Member F.D.I.C.

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Federal Reserve Bank of St. Louis

N o rthw estern

Banker, A p ril

1 9 75

Jon will help you open house
and up deposits.
Our Jon Bjornson heads an exclusive Northwestern Bank service called
O peration O pen House. With it, he can pro du ce any kind of d e p o sit
building prom otion you have in mind.
From a new service introduction to an in-bank ice cream social, Jon
handles the details. M edia schedule. Tim etable. The works.
Next tim e you want to draw a crowd, write Jon for help. At the
Northwestern National Bank, M inneapolis, 55480. Or call him
At (612) 372-8558.

W e take your business personally.
Helping you change things for the better.

® Northwestern
U national Bank

Of Minneapolis

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Federal Reserve Bank of St. Louis

Member FDIC

69
responsibility is in the instalment
lending department.

Minnesota
News
G. M . PIESCHEL
T. L. JEFFERS

President
Exec. V.P,

Springfield
M inneapolis

To Hold Community Bankers Seminar
To Increase Deposits and
H OW
Profits is the topic of the Com
munity Bankers Seminar to be held
April 15 and 16 at the Radisson South
Hotel in Minneapolis. The meeting is
sponsored by the Bank Marketing As
sociation (BMA) and the Minnesota
Bankers Association in cooperation
with the Minnesota chapter of BMA.
Registration begins at 12:30 p.m.
Tuesday, April 15, in the Great Hall
Foyer followed by the general session
at 1:30. Some of the topics to be dis
cussed include Management by Objec
tives and Employee Relations; Mar
keting & Public Relations: A Profit
able Management Tool; EFTS; and
Future Environment for Bank Market
ing.
A large part of the meeting will be
devoted to workshops on such subjects
as Communicating with the Media —
Radio, Newspaper & Banking Publi
cations; How To Do Cross-Selling/Employee Communications; Market
Segmentation; How To Market to the
Agri-Business Community; How To
Deal with Consumerism, Community
Relations; Profit Planning, Premiums;
and Packaging.

of electrical appliances and equipment
and electrical and plumbing con
tracting, Mr. Welker is president of
Welkers, Inc., in Montevideo and
Key Business Products in Willmar.

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Federal Reserve Bank of St. Louis

Savage Bank Names
Assistant Cashier
Bob Lexvold, president of the
Security State Bank of Savage, has
announced the promotion of Marion
A. Buscher to assistant cashier. Ms.
Buscher joined the bank in 1971
as supervisor of bookkeeping. She
has had approximately 20 years of
banking experience.

Columbia Heights Bank
Promotes 3 Officers
Karl D. Stotesbery, president of
the Marquette State Bank of Columbia
Heights, has announced the promo
tions of three members of his officer
Stillwater Bank Names
staff: W i 11 i a m
Laing to execu
Wilcox Director
Richard S. Wilcox, Jr., president
tive vice president,
of Wilco, Inc., has been elected to
M. L, Grotewold
the board of the Northwestern State
to vice president
Bank of Stillwater. The announcement
and D a v i d B.
was made recently by J. C. Graham,
Carstensen to as
president.
sistant vice presi
dent.
Mr. Laing has
G. Oosterhuis
been vice presi
W . LAING
Funeral services were held re
dent at the bank
cently for Gerald Oosterhuis, vice
since January of 1974 coming to the president of the Oglivie State Bank.
bank after 13 years with the North
Mr. Oosterhuis had been employed
western State Bank, Osseo. In addition at the bank for 27 years. He was
to administrative duties, he is responsi a past president of the 6th District
ble for the commercial and real estate Minnesota Bankers Association.
lending areas.
Norwood Bank Director
Leonard (Dick) Lano has been
appointed to the board of Citizens
State Bank of Norwood. He is a
partner in Lano Brothers Implement.

Elected at Hoyt Lakes
Charles A. Stiles has been named
a director of the First National Bank
of Hoyt Lakes. Mr. Stiles is assistant
general manager of Pickands, Mather
and Company.
Montevideo Bank Elects
Three New Directors
O. B. Rekow, president, has an
nounced the election of Norman
Bosch, Luthard Molde and Ray
Welker to the board of First National
Bank in Montevideo.
Mr. Bosch is engaged in dairy,
beef feeding and cash crop production
northeast of Montevideo. Mr. Molde
is a partner with his brother in a
firm engaged in the sale and service

Named at Montevideo
Gary D. Radei has been appointed
an assistant vice president of the First
National Bank in Montevideo, accord
ing to O. B. Rekow, bank president.
He joins the bank after four years
with Gambles Continental State Bank
of St. Paul where he served as vice
president and lending officer.

M , l . GROTEWOLD

D. B. CARSTENSEN

Mr. Grotewold has been instalment
loan manager since December of 1973.
He will have full responsibility for
the instalment loan portfolio.
Mr. Carstensen joined Marquette
as an instalment loan officer in April
of 1971. He formerly was with IDS
Credit Corp. for five years working
in its Detroit, Cleveland and Min
neapolis offices. His primary area of

Pat Kirby Joins
Waterville Bank
Pat Kirby has joined the Citizens
State Bank of Waterville as loan
officer. Mr. Kirby, a native of Fonda,
la., formerly was employed by the
Federal Deposit Insurance Corpora
tion.
Willis E. Weber
Funeral services were held recently
for Willis Eugene Weber, 51, executive
vice president of the State Bank of
Springfield.
Northw estern

Banker,

A pril

1975

WS» .

N o rth w e s tern B anker, A pril

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

J9 7 S

When Dick Holm es
comes in three hours
late for dinner
ift your problem .
It might be any banking problem . . . a
question about our HR10 program . . . or
should you install a computer terminal.
Dick Holmes will gladly miss dinner for a
chance to discuss your problems with you.
And often the best time is after you close
your bank for the day. Your phone isn’t ring
ing off the hook then. You can sit back and
take time to tell Dick what’s on your mind.
He’ll listen.
Marquette men are good listeners. And,
because th e y’ re good bankers, too, they

have the capacity to understand what you’re
saying.
Which is how problems get solved.
Dick himself may not have the solution in
his back pocket. But he knows where to look
for it. And he has a whole stable of able bank
ers behind him who are interested in helping
him find it.
For Dick Holmes and other Marquette
Correspondent bankers, bankers’ hours start
after bankers’ hours.

We d o th i n g s y o u r w ay.

Gary B Wollan

Avery G Fick

Bill Addington

Bill Rosacker

Dick Holmes

Len Erickson

370-2154

370-2166

370-2165

370-2164

370-2167

370-2168

Correspondent Banking Department

A MamietffiNaMMBaN
777 Marquette Avenue, Minneapolis, Minnesota 55480

T h e Ba n k A m e r ic a r d Ba n k

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Federal Reserve Bank of St. Louis

N orthw estern

B an ke r .

N. Wolfe, 58, has been
R OBERT
elected chairman of the board of
th e E a s t e r n
H e i g h t s State
Bank, St. Paul,
succeeding L y l e
H. Fisher who
died in December
of 1 9 7 4. Mr.
Wolfe is a 3M
Company v i c e
president of man
agement informa
tion.
Also announced was the election of
Ralph D. Ebbott, 47, 3M Company
vice president of management informa
tion, to the board. His election brings
the bank’s number of board members
to six.
The bank was established by 3M in
1958.
* * *
Roger L. Hale, president of Ten
nant Company, floor maintenance
equipment manufacturer, has been
elected to the board of First National
Bank of Minneapolis.
Previously, since 1970, he has
served on the advisory committee of
the bank’s West Broadway office.
Mr. Hale also is on the boards of
the Valspar Corporation and the

A u to m o biles
T ru ck s
(2 t o n o r less)
H ou se h old G o o d s
Farm M a c h in e r y
M o to rc y c le s

Walker Art Center and is a member
of the Citizens League.
Also announced was the election of
Frank B. Krause as a senior vice
president. He becomes deputy head
of the trusts and investment manage
ment group and will continue in charge
of the trust administration department.
A graduate of Carleton College and
the University of Minnesota Law
School, he joined First Minneapolis’
trust staff in 1941. Since 1963 he has
been vice president and senior trust
officer.
*

John E. Morgan has been promoted
to director of marketing services at
F i r s t National
Bank of Minne
apolis. For the
past year he has
been the bank’s
advertising man
ager.
Prior to joining
First Minneapolis,
Mr. Morgan was
w
i t h CampbellJ. E. M ORGAN
Mithun advertis
ing agency as account manager, and
also with International Timesharing
Corporation.

M o b ile Homes
R E C R E A T I O N A L VE HIC LE S
S n o w m o b ile s
B oats a n d M o to rs
T ra ve l Tra ile rs
M o to r Homes

■■

SE LOANS AGAINST PHYSICAL DAMAGE LOSSE

w rite: G.D. VAN W AGENIN C
1006 Northwestern Bank Bldg., Minn
(6 1 2 ) 333-2261
N o rth w estern B an ker, A p ril 1975

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Federal Reserve Bank of St. Louis

_______

Mr. Morgan is a life-long resident of
Minneapolis and a graduate of St.
Thomas College. He resides in Wayzata.
* * *
Funeral services were held recently
for Clarence E. Drake, 95, former
vice president of Northwestern Na
tional Bank. Mr. Drake was born in
Iowa andcame to Minneapolis in
1900. He joined the Minnesota Loan
and Trust Co. in 1912.
* * *
Northwest Bancorporation has an
nounced the promotions of Ronald R.
Hedger, Clifford S. Jacobson and
Anita M. Johnson to assistant vice
presidents and Dean H. Hoppe to
personnel officer.

HEDGER

JACOBSON

JO H N SO N

Mr. Hedger joined the bank in
1966, was elected investment officer
in 1970 and joined the investment
department in 1972.
Mr. Jacobson began his career
with Banco in 1969 as a credit analyst.
He moved to Northwestern National
Bank Southwest in 1971 and is now
in the commercial loan division.
Ms. Johnson joined Banco in 1960,
was elected assistant secretary in 1968
and investment officer in 1971.
Mr. Hoppe previously was with the
Iowa-Des Moines National Bank,
Banco affiliate.
V Tvron K. Fstlick has joined the
I*) First National Bank of Minneapolis
! as an investment officer in the personal
Intrust portfolio management division

There must
be a reason
over 250 other
lenders have turned
their student loan
administration over
to First Minneapolis.

Paperwork is just one of the burdens of student loan administration. It takes scores of
man-hours, training, and proper equipment
just to get the job done.
That’s why so many lenders have turned
this task over to the Student Loan Servicing
Center of the First National Bank of Minneapolis. We’re specialists in handling all

administration details. And our experience
with lenders of all sizes has proven that we
can save you money. And make your student loan program more profitable for you.
It may be well worth your while to
bundle up your student loan
problems and call us collect at
(612)370-4035.

First
Minneapolis
Student Loan Servicing Center, First National Bank of Minneapolis
120 South Sixth St., Minneapolis, Minnesota 55402
•
Member FDIC

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Federal Reserve Bank of St. Louis

Northw estern

Banker,

A p ril

1 97 5

M innesota N e w s

of the trust investment division. Since
graduating from Butler University,
he had been a portfolio manager at
the Merchants National Bank and
Trust Company in Indianapolis.
'h
H
*
Paul Gubrud has been promoted to
vice president of Dain, Kalman &
Quail, Incorporated, in the firm’s in
stitutional bond department.
Mr. Gubrud joined the company in
1971 and has specialized in working
with banks on their municipal, gov
ernment and corporate bond portfolio
requirements in northern Minnesota,
northwestern Wisconsin, North Dako
ta and north central Iowa. He was
named an assistant vice president in
August of 1974.

State Bank of Hamburg
Names President, Chairman
The State Bank of Hamburg has
advanced Henry C. Reget from presi
dent to chairman and has advanced
Kenneth Oelfke to president.
Mr. Oelfke joined the bank in
August of 1966 and was named
cashier in January of 1967 and execu
tive vice president in February of
1969. Prior to joining the bank he

was manager of the Hamburg Co
operative Association.

Promoted at Albert Lea
Gordon L. Bickle, president of the
Freeborn National Bank of Albert
Lea, has announced the promotions
of James G. Brisbane and James
Schindle.
Mr. Brisbane was promoted from
assistant manager of the instalment
loan department to assistant cashier
and assistant manager of the depart
ment. Mr. Schindle was promoted
from adjuster to personal loan officer
of the instalment loan department.
Theo. A. Sletta
Funeral services were held recently
for Theo. A. Sletta, president of the
State Bank of La Salle.
Mr. Sletta, a graduate of St. Olaf
College, had worked with federal
farm loans from 1930 to 1934 and had
served as cashier, bank manager and
president of the La Salle bank from
1935.
Clarissa Bank To Expand
The Farmers State Bank in Clarissa
has announced plans to enlarge its

facilities by extending into the building
next door according to Merle Larson,
bank president. Plans call for more
offices, larger lobby area and book
keeping areas.
Architects for the remodeling pro
cess will be Madsen and Associates
of Battle Lake.

Promoted at Williston
Norma Maxwell has been promoted
to assistant trust officer at the First
National Bank & Trust Co. of Wil
liston. She has been secretary for the
trust department since its organization
in 1970.
Springfield State Elects
Schmitz President
The Springfield State Bank has
elected Glenn Schmitz executive vice
president replacing the late Willis
Weber. Mrs. Fidelis Steinke, assistant
cashier and a bank employee for the
past 24 years, has become cashier, the
position formerly held by Mr. Schmitz.
Ray Bielen has been appointed agricul
tural representative, a new position.
Mr. Schmitz is also a director of the
bank. He attended the Graduate School
of Banking at the University of Wis
consin, Madison, 1965-67.

IN T R O D U C IN G
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one. Business tem po and cash
flow varies according to seasons,
industry, weather cond i
tions and other variables.
T h a t’s w h y at A B I. we
tailor-m ake a lease and rental
schedule to best fit your individual needs.
O ur affiliation with Am erican Bancorporation, Inc., gives us the financial
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acquiring a $25,000 asset or a m ulti-m illion dollar equipm ent package, we
realize your company's financial needs are uniquely yours. So talk to one of
our personal representatives and try on an ABI “ tailor-m ade lease for size.
Call 298-6009 for an appointm ent.

l e a s in g

c/IBI LEASING CORP

A Subsidiary of
American Bancorporation, Inc.

1200 American National Bank Building • 370 Minnesota Street • St. Paul, Minnesota 55101
Digitized
N o r tfor
h wFRASER
e s tern B an ker, A pril
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Federal Reserve Bank of St. Louis

197S

Community Bankers Seminar
Scheduled for April 1 5 - 1 6

10:30
10:45
11:45

P. M.
1:30

THE program committee includes (left to right): Chmn. S. R.
Wheaton, exec, v.p., First Nat’l Bank, Elk River; Richard A.
Erickson, a.v.p., Midland Nat’l Bank, Minneapolis; Warren
Hinze, pres., First Edina Nat’l Bank; and Monroe Stenerson,
v.p., Richfield Bank & Trust Company.
Radisson South Hotel, Bloomington
Tuesday, April 15
P. M.
12:30 to
1:30 Registration— Great Hall Foyer
1:30 W elcome & General Session— Great Hall East
Management by Objectives & Employee Relations—
Louis A. Seiberlich, Jr., senior partner, Omnisystems,
Inc., Milwaukee, Wise.
Marketing & Public Relations: A Profitable Management
Tool— C. Bernard Jacobs, chairman and chief executive
officer, National City Bank of Minneapolis
3:30 Informal Discussion & Break
3:45 Workshops
Communicating with the M edia— Great Hall E a s t Radio, Newspaper & Banking Publications— Curtis
Beckmann, news director, WCCO Radio, Minneapolis;
John F. Callender, vice president and sales manager,
American Newspaper Representatives, Inc., Minneapo
lis, and Malcolm Freeland, president, Northwestern
Banker, Des Moines, la.
How To Do Cross-Selling / Employee Comm unications—
Veranda I & II — Louis R. F. Preysz, III, marketing &
personnel officer,
Security First National
Bank,
Sheboygan, Wise.
Market Segmentation— Veranda III & IV— Rob McCampbell, assistant vice president, Marquette National Bank,
Minneapolis
5:30 Cash Bar
6:30 Minnesota chapter, BMA, Dinner (not included in
registration fee).
Wednesday, April 16
A. M.
7:30 to
8:30 Registration — Great Hall Foyer
8:00 Breakfast & General Session — Great Hall East
EFTS— What is Happening in Educating the Consumer:
Are We Becoming More Successful?— Russell C.
Browne, Jr., advisor for payment systems, Office of the
Comptroller of the Currency, W ashington, D. C.
9:30 How To Do It Workshops
How To Market to the Agri-Business Community — Great
Hall East— Richard S. Goos, vice president, First
National Bank, Council Bluffs, la.
How To Deal with Consumerism— Veranda I &
II— Thomas J. Prosser, president, Marine National Bank,
Neenah, Wise.
Community Relations— Veranda III & IV— Mark Dignin,
marketing executive, Farmers & Merchants Bank,
Menomonee Falls, Wise.

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Federal Reserve Bank of St. Louis

2:15
3:00
3:15

Informal Discussion & Break
9:30 Workshops Repeated
Lunch— Great Hall East— Would You Rather Fight Than
Switch? — Richard H. Stebbins, president, Richard
Stebbins & Associates, Inc., Minneapolis
How To Do It Workshops
Profit Planning — Great Hall East— Rodney S. Brutlag,
vice president and director, community banking
division, Bank Marketing Association, Chicago.
Premiums— Veranda I & II— Jerry S. Maples, executive
vice president, Jackson State Bank & Trust Co.,
Maquoketa, la.
Packaging— Veranda III & IV— Gary A. Scott, vice
president, marketing, Citizens Bank & Trust Company,
Park Ridge, III.
1:30 Workshops Repeated
Informal Discussion & Break
Wrap Up/Evaluation — Great Hall East
Future Environment for Bank Marketing — Alex W. (Pete)
Hart, vice president and director of retail marketing,
First National Bank, Chicago
“'My Financial Career”— movie made available through
Bank Marketing Association.

CASUALTY
UNDERWRITERS, Inc.
498 M etro Square — 7th & Robert Streets
St. Paul, Minnesota 55101

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Northw estern

Banker,

A p ril

1975

M innesota N e w s

Hastings Bank Appoints
Dotson and Storey
Arvid B. Evensvold, president of
the First National Bank of Hastings,
has announced the appointment of

MBA Scholarship Recipient

the board of the First National Bank
of Lakefield. He fills the seat that has
been vacant since the departure of
Douglas Lee, former president of the
bank.

Named to NW Board
At Austin
Edmund E. Smith has been elected
a director of Northwestern State Bank,
Austin, according to Carl W. Beireis,
bank president. Mr. Smith is publisher
of the Austin Herald.

D. DOTSON

B. B. STOREY

David Dotson as assistant vice presi
dent and assistant trust officer and
Bruce B. Storey as assistant vice
president.
Mr. Dotson has been associated
with the First National Insurance
Agency since November of 1973. He
also is an agent and manager of the
First Agency of Hastings. Mr. Storey
formerly was an instalment loan
officer at Citizens Bank and Trust
in Hutchinson.

Lidgerwood Bank
Elects 2 Directors
Two new members have been
named to the board of directors of
the First National Bank of Lidger
wood, according to Darwin Ronngren,
bank president. They are Leo Ehli,

THE 1974-75 recipient of the Minn. Bank
ers Association Graduate Fellowship Award
in banking & finance at the University of
Minn, was announced by G. M. Pieschel
(left), MBA pres., as Lee B. Skold (right),
Hopkins. $2 ,500 was presented to Mr.
Skold, a student at the University's Grad
uate School of Business Administration.
He attended Northwestern University and
received his bachelor's degree in business
admin, from the University of Minn, in
June of 1974.

owner of Movius Insurance Agency
and real estate broker, and Elmer
H. Frank, owner of Walby F'uneral
Home in Lidgerwood and Wipperman
Funeral Home in Hankinson.

Emmons Bank Director
Clifton C. Cavanaugh, vice presi
dent and manager of First National
Bank of Emmons, has been elected a
director, according to Herbert A.
Lund, bank president.
Mr. Cavanaugh has been the bank’s
manager since 1973 and formerly was
cashier of the State Bank of Clarks
Grove.
Fills Vacany on
Lakefield Board
Lloyd Kruse, president of K & S
Construction and vice president of
Hugo Schulz, Inc., has been elected to

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All inquiries strictly confidential.

Northwestern
Banker, A p ril 197$
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Austin Bank Opens
New Facility
Grand opening of the second and
major phase of the First National Bank
of Austin’s three-part building program
was held recently.
The new 23,000 square foot, twolevel structure, is the fourth new facility
since the bank was founded in 1868.
First phase of the program was the
construction of a drive-in facility. The
old bank will now be razed and recon
structed to house the Austin National
Co. and the First National Travel
Agency, thereby completing the third
phase.
Increases Capital
First State Bank of Freeborn has in
creased its capital stock from $50,000
to $100,000 by stock dividend.
Promoted at Ivanhoe
Agnes E. Rybinski has been named
assistant cashier of the State Bank of
Ivanhoe. She has been with the bank
since March 23, 1959.
State Bank of Byron
Names Assistant Cashier
James R. Anderson has been ap
pointed assistant cashier of the State
Bank of Bryon, according to R. F.
Williams, president.
Mr. Anderson joined the bank in
July of 1973 and has served as a teller
and management trainee.

A u to m a tic Teller M ach in es
In the seven-state area, 96% of the banks do not offer 24-hour service through auto
mated teller machines. Among the largest banks, however, 4 out of 10 do employ this
service.
Only 3% of those not presently using automated teller machines foresee installing them
in 1975.
1. DOES YO UR BANK OFFER 24-H O U R SERVICE T H R O U G H THE USE OF
A U T O M A T E D TELLERS?
Response:

All Banks

Yes

No A n s w e r

T o tal

100

2. IF NOT, DOES YOUR BANK PLAN TO INSTALL SUCH FACILITIES D U R
ING 1975?
Response:

All Banks

Yes

N o t C e rtain

No A n s w e r

T o tal

100

Correspondent
Bank
Division
Your bottom line is our top pri<

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Federal Reserve Bank of St. Louis

N o rth w estern B anker, A p ril 1 9 75

South Dakota
News
HENRY B. SCHELLE

President

J. I. MILTON SCHWARTZ

C ham berlain

Secretary

Huron

Mitchell Bank Announces
Officer Promotions
Boyd Knox, chairman and president
of the Commercial Trust and Savings
Bank, has an
nounced the pro
motion of three
officers to vice
presidents and a
number of other
title changes.
Prom oted to
v i c e presidents
are Donald D.
Ditmanson, Rich
ard V. Martin and
Bruce G. Meyer. Assistant cashiers
who were promoted to assistant vice

R. V. MARTIN

Promoted to vice president and
cashier at the main office is Gerald
B. Feldhaus. He will be in charge
of lending activities.
Clarence B. Erickson, who re
cently completed 27 years with the
bank, was promoted to manager of
the 41st Street office. Lawrence Behl
was appointed credit manager.

Aberdeen Bank
Elects 3 Officers
C.P. (Buck) Moore, president, First
National Bank of Aberdeen, has an
nounced the election of the following
three officers: Don Anderson, agricul
tural loan officer; Tim Melin, assistant
vice president and trust officer, and
Alan Shippee, trust officer. All three
are at the bank’s main office.
Mr. Anderson, a native of Klemme,
la., joined the bank in the agricutural

lending area in April of 1974.
Mr. Melin, a native of Minnesota,
comes to Aberdeen from Northwestern
National Bank, a Banco affiliate, where
he served as trust officer. He graduated
from the University of Minnesota in
1969 and joined Northwestern Bank in
1967 working in teller, operations and
trust areas. His appointment is effective
April 24.
Mr. Shippee, a native of Providence,
R. L, is a graduate of Carthage College,
Kenosha, Wise. He joined the trust de
partment of First National Bank of
Lake Forest, 111., in 1968, and from
1971 until the present was trust officer
with the First National Bank of
Evanston, 111.

First Dakota, Yankton,
Announcements
At the annual shareholders’ meeting
of First Dakota National Bank of
Yankton, the board accepted the res
ignation of Hugh C. Danforth, honor
ary chairman, and elected as director,
in his place, his daughter, Sara D.
Assland.
N. C. Gross, chairman, also an
nounced that the new drive-in facilities,
which will include four lanes of traffic
south of the bank, will be completed
this summer.

B. 6 . MEYER

presidents are James A. Ahrendt,
Vernon M. Wulf and Keith D. Lunde.
Mr. Wulf also is auditor. Appointed
assistant cashiers are Robert E. Young
and Gary L. Slade.
Mr. Ditmanson joined the bank in
1966 as agricultural representative,
was named assistant cashier in 1967
and promoted to assistant vice presi
dent in 1969.
Mr. Martin began employment at
the bank in 1963 as manager of the
instalment loan department.
Mr. Meyer joined the bank in 1969
as manager of the instalment loan
department, a position he continues
to hold.

Union Bank Promotions
Charles D. Rogness, chief executive
officer at Union Bank & Trust Co.
of Sioux Falls, has announced three
staff changes.
N o rth w estern B anker, A p ril 1975

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Federal Reserve Bank of St. Louis

SHOWN is R. H. Garry (left), pres. & t.o., Security Bank & Trust, Webster, presenting an
award to Thos. E. Porter (center) for his nearly 43 years of service to the bank.
Catherine Porter is on the right.

Webster Bank Hosts Tom Porter Day
fT , HE Security Bank and Trust Co.,
-*■ Webster, recently hosted a “Tom
Porter Day” honoring Thos. E.
Porter for his nearly 43 years of
service to the bank. Mr. Porter began
his banking career in Webster in 1932
when he was elected assistant cashier.
In 1942 he was elected president and

in 1965 chairman, a position he held
until his retirement on January 16.
Nearly 300 people gathered to offer
their regards to Tom and his wife
Catherine while sharing coffee and
cake with them. Mr. Porter was pre
sented a framed Resolution of Appre
ciation from the board.

79
vice president; L. A. Nelson, cashier,
and Gary Nelson, R. M. Johnson and
Mary Ann Wing, assistant cashiers.
Directors elected are M. T. Nelson,
L. A. Nelson, W. R. Nelson, Gary
Nelson and L. M. Nelson.

North Dakota
News
E. E. K A U TZM A N N
W . J. OANER

President
Secretary

M andan
Bismarck

Bank of Kirkwood Plaza
Opens for Business
The new Bank of Kirkwood Plaza
opened recently on the first floor of
Kirkwood Office Tower in Mandan.
The bank has four drive-up lanes.
Bank officers are James H. Kelly,
president; Gerald P. Wilier, vice
president and cahier, and Magie A.
Silbernagel, assistant cashier. Board
members are Gerald W. McCoy,
chairman; Mr. Kelly, president; Paul
C. Wachter, secretary, Ned Nastrom,
treasurer and James P. Wachter, vice
president.
Mr. Kelly, a native of Chicago, has
held executive positions in banks in
Colorado, Dickinson and Bismarck.
Mr. Wilier began his banking career
in 1967 in Dickinson. He has held
executive positions in a bank in Mis
soula, Mont.
Ms. Silbernagel started her banking
career with the Bank of America,
Los Angeles. Since then she has been
associated with banks in Rhame and
Bowman and the First National
Bank and Trust Co., Bismarck.
Merchants Nat’l, Fargo,
Holds Open House
Merchants National Bank and Trust
Co. of Fargo recently held an open
house to show the extensive re
modeling of its main lobby.
The lobby refurbishing was the
final step in a year-long remodeling
program which included installation
of six new drive-in stations and the
launching of 24-hour banking in a
building constructed in the bank’s
parking lot.
A1 K. Simpson is the bank’s presi
dent.
Fargo National Bank
Promotes 5 Officers
Mike Kitzman and Jack Lavin
recently were promoted to vice
presidents of the Fargo National
Bank and Trust Company. Other
promotions included James E. Hanson,
assistant manager of the data pro
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Federal Reserve Bank of St. Louis

cessing department; David L. Redmann, assistant auditor and Richard
Cast, trust officer.
Mr. Kitzman, who joined the bank
in 1966, has been assistant vice presi
dent for the past year. He originally
was with the savings department,
transferring to instalment loans in
1967. In 1971 he was promoted to
assistant cashier.
Mr. Lavin joined the bank in June
of 1974 after eight years with the
Comptroller of the Currency. He
has been assistant vice president.

Security State, Hunter,
Changes Ownership
Ownership and management of
the Security State Bank of Hunter
have been changed. Officers are
Curtis J. Haarsager, president; Robert
C. Lauf, vice president; Alfred H.
Martin, cashier and manager of the
Galesburg station, and Bernice Peihl,
assistant cashier.
New directors elected include Ro
bert C. Lauf, Prudential Insurance
Co., Fargo; James R. Dawson, Daw
son Insurance Co., Fargo; W. O.
Brown, president, Security State Bank,
Hannaford; and Messrs. Martin and
Haarsager.
Advisory directors elected include
Robert C. Dawson, Dawson Insurance
Co., Fargo, and D. V. Anderson,
executive vice president, Litchville
State Bank.
Mr. Haarsager formerly was with
the Federal Deposit Insurance Corp.
as an examiner stationed in both Fargo
and Brainerd, Minn. Prior to that he
had been with the First National
Bank & Trust Co., Fargo.
Mr. Martin was assistant cashier
and manager of the Galesburg station
prior to the change of ownership.
Scandia American Bank,
Stanley, Names Officers
M. T. Nelson has been named chair
man and president of the Scandia
American Bank of Stanley. Other
officers named include W. R. Nelson,

Richardton Bank Elects
Schwartz Director
Ronald Schwartz has been elected
to the board of the Farmers State
Bank of Richardton, according to
Francis C. Forster, bank president.
Mr. Schwartz is a partner in the Draeb,
Draeb and Schwartz law firm which
maintains offices in Hebron and
Richardton.
Controlling Interest in
Goodrich Bank Sold
Controlling interest in the First
State Bank of Goodrich has been sold
by the Edmund A. Schauer Trust
to Edwin C. Richter, Ida F. Richter
and Paul A. Richter of Glen Ullin
and Regent.
The board has been reorganized
with Edwin C. Richter elected chair
man and Paul A. Richter named
president.
Named at Wahpeton
Clair W. Hudson, general manager
of Lillegard’s Inc., has been elected to
the Wahpeton National Bank’s board
of directors, according to W. M. San
ger, bank president. J. R. White and
Charles Coghlan recently retired from
the board.
Bismarck Bank
Promotes 3
Robert P. Hendrickson, president of
First National Bank and Trust Com
pany, Bismarck, has announced the fol
lowing three promotions: Ella Nordby,
manager of the motor bank, Second
Street and Thayer Avenue; Charles E.
Wittenberg, trust operations officer,
and Stan Engel, instalment loan officer.
Gene Hamilton
Joins Medora Bank
Gene Hamilton has joined the
Farmers and Merchants Bank, Medora,
as a loan officer. He has five years of
banking experience having worked in
the First Bank system in Cando and
Langdon.
Mr. Hamilton has a degree in busi
ness administration from the Univer
sity of North Dakota at Grand Forks.
He is a native of North Dakota.
N o rthw estern

Banker,

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1975

Colorado
News
N. BERNE HART
D enver
President
Colorado Bankers Association

loan officer, according to Robert M.
Gilbert, president and chairman.
Mr. Haney comes from the First
National Bank of Southglenn where
he managed the real estate loan
department as a mortgage loan officer.
He worked in the instalment loan
department/Master Charge and be
came loan officer in 1972.

Pueblo Bank Names
came to Colorado Springs in Sep Senior Vice President
Jefferson B&T Sold
John A. Dahlstrom and Gilbert tember of 1972 relocating from The
James C. Davis has been promoted
L. Shelton have acquired all of the First National Bank of Salida. Prior from vice president to the new position
stock of Jefferson Bankshares of to that, he was a bank examiner for of senior vice president of the Republic
Colorado, inc., a bank holding com the Comptroller of the Currency. Mr. National Bank of Pueblo.
pany which owns over 95% of the Winslow is president and owner of
Mr. Davis joined the bank in 1970
stock of Jefferson Bank & Trust Winslow Volkswagen.
as an assistant cashier, advancing
Company.
to cashier in 1971. He was promoted
Robin Bailey, former president and Central Bank Opens
to vice president and named to the
chairman, has been named as special Expanded Drive-In
board in 1973.
consultant to the bank. Mr. Dahlstrom,
Central Bank and Trust Co.,
Mr. Shelton and Charles R. Canfield Denver, has opened its expanded First of Denver Offers
have been elected directors of both the drive-in banking facility at the corner Home-Study Course
bank and holding company. Mr. of 14th and Lawrence Streets down
Personal Financial Planning, a
Dahlstrom is a practicing attorney with town.
computerized home-study course, is
the firm of Parsons, Behle and Latimer
The additional eight teller windows now being offered exclusively by The
in Salt Lake City, Utah. Mr. Shelton brings to 18 the number of locations First National Bank of Denver in a
is chairman and president of Tracy- to serve drive-in customers. In addi seven-state region, according to Roger
Collins Bank & Trust Company of tion, the entrance from Lawrence has D. Knight III, vice president.
Salt Lake City. Mr. Canfield formerly been widened to six lanes to accom
The program, which allows custo
was executive vice president of Tracy- modate as many as 60 cars.
mers to set their own pace, covers six
Collins Bank. He was elected chairman
Main feature of the expanded fa subjects: investments, employment
and president of Jefferson Bank & cility is a lightweight 100-by-5 0-foot benefits, building a financial founda
Trust Company.
airframe roof under which four tellers tion, taxes, gifts and property owner
will serve eight cars from two central ship, trusts and wills and plans and
control booths.
Security State, Sterling,
prospects.
Architects were W. C. Muchow and
Celebrates 50th Year
Each lesson is mailed. It contains
Security State Bank of Sterling Associates of Denver. Contractor was a booklet, which takes about two hours
recently held a four-day nostalgic J. R. Howell and Co., also of Denver.
to read, as well as a quiz testing
celebration of its fiftieth anniversary.
the customer’s knowledge. The an
Several special events organized by Joins First of Greeley
swers are critiqued by a computer,
the bank focused on historical themes,
David M. Haney has joined the then mailed to the customer with the
including everything from a multi- First of Greeley as a commercial next lesson.
media presentation of Sterling and
Colorado landmarks to a collection
of Old West privies.
Record Set at Central Bank’s Drive-In
Robert E. O’Connell is president
of the bank.
Colorado Springs Bank
Names 3 Directors
Alan Noyes, president of East
Bank of Colorado Springs, has an
nounced the election of three new
directors. They are E. Hale Adams,
Jr., Douglas ML Williams and Philip
A. Winslow.
Mr. Adams, vice president, joined
the bank in December after serving
as vice president of the correspondent
bank department of The First National
Bank of Denver. Mr. Williams, vice
president and cashier for East Bank,
Northw estern

Banker,

A pril

I9 7 S

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Federal Reserve Bank of St. Louis

DENVER'S Mayor, Bill McNichols (left) and Bronco Coach John Ralston (center) were
special guests at the official dedication of Central Bank and Trust Co. newly expanded
18-station drive-in facility banking area recently. They were passengers in the twomillionth car to be served by the facility driven by Max G. Brooks, bank chmn.

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our legroom. Ozark has
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its aircraft, to provide more
comfort for all its passengers—
including the longer-legged ones.
There's just ONE class service on
Ozark now—it's A-num ber-one—
offering better seating and
better reasons for your Ozark
flight to be NICE GOING.
(Or nice com ing back.)

Call your travel a g e n t or

OZARK
AIRLINES
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19 7 S

82
career began in 1962 with the Billings
State Bank, which later merged with
the First National Bank and Trust

Montana
News
T. A. VASHUS

President

G lendive

J. T. CADBY

S ecretary

H elena

G roup M eetings Scheduled fo r M ay 3 -1 0
ROUP MEETINGS for the Montana Bankers Association will
be conducted May 3 to 10, according
to a schedule released by the MBA
last month.
“The Flying Circus,” made up
of association officials, correspondent
bankers and service representatives
of bank-oriented firms, will travel
to the meetings in a new 43-passenger
bus chartered for the trip. Their bus
will leave Helena on Friday, May 2,
headed for the first meeting at Huntley
Lodge in Big Sky on Saturday, May
3. The bus will return to Helena on
Sunday, May 11.
All business meetings will start
at 2 p.m. or 3 p.m.. All receptions
and dinners will start at 6 p.m. There
will be a dance after the dinner at
each meeting except the final meeting
Friday, May 10. The business program
schedule is:
“State Association Report” —
Tully Vashus, president, Montana
Bankers Association and president,
First National Bank, Glendive.
“By-Laws Revision” — Roger
Ulrich, immediate past president of
the MBA and president, First State
Bank, Malta.
“Face of the Future — Banking
1985” — ABA film.
“Legislative Review” — John Cadby, MBA executive manager, Helena.
Speaker — Ben Havdahl, public
relations manager, Conoco, Denver,
Col.
“BankPac Review” — Fred Fland
ers, president, Bank of Montana,
Helena.
The meeting schedule follows:
May 3 — Groups 6 & 7, Convention
Center, Big Sky.
May 5 — Group 2, Elks Club,
Sidney. (Preceded by golf tourney at
Sidney Country Club.)
May 6 — Group 4, Airport Golf
Club, Wolf Point. (Preceded by golf
tourney at Airport Golf Club.)
May 8 — Group 1 & 5, Heritage
N o rthw estern

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Federal Reserve Bank of St. Louis

1975

Inn, Great Falls. (Preceded by golf
tourney at Meadow Lark Country
Club.)'
May 10 — Group 3, Venture Inn,
Libby. (Preceded by golf tourney at
Cabinet View Golf Course.)

i . R. HODGSON

P. M AHONEY

Company. Prior to moving to Billings
he was with Northwest Bancorporation’s credit department in Minneapo
lis.
Mr. Mahoney joined First Na
tional’s instalment loan department in
1956 and was instrumental in setting
up the bank’s computer operations
system. He is past president of the
American Institute of Banking.

Security Bank, Billings,
Promotes 6 Officers
Warren F. Vaughan, president of the
Security Bank of Billings, has an
nounced the pro
motion of six of
ficers. Tom Scott Eastside Bank Promotes
was named vice 3 in Great Falls
president; F r a n
Bruce K. Miller, president of the
Snowden, secur Eastside Bank of Montana, Great
ities officer; Pat Falls, has announced the recent
Gentle, i n s t a i ment loan officer;
Agnes Hoffman,
mortgage loan of
T. SCOTT
ficer, and Jim
Smith and Dave Jorgenson, agri-busi
ness officers, Tom Jochim, instalment
loan officer.
Mr. Scott spent several years at the
Bank of Commerce in Sherdian, Wyo.,
prior to joining the Security Bank in
R. i . KENDALL
M . D. AAGENES
November of 1970. He is a graduate
of the University of Wyoming at promotion of three of its employees:
Laramie.
Russell J. Kendall to vice president
and cashier, Morris D. Aagenes to
Bancorporation Elections
assistant vice president and instal
Bancorporation of Montana has ment loan officer and Vincent B.
elected Molly A. Sanderson assistant Taylor to assistant cashier.
secretary and Lois K. Tinney assis
Mr. Kendall was formerly asso
tant controller, according to Charles ciated with Central Bank of Montana
W. Rubie, president and chief execu and Pondera Bank of Montana as
tive officer.
cashier before joining Eastside in
1972 as assistant vice president
and cashier. Mr. Taylor joined the
Billings Bank Advances 3
AI Winegardner, president of First bank in May of 1973 in the manage
National Bank of Billings, has an ment trainee program. In November
of 1973 he moved to the instalment
nounced three employee promotions.
James R. Hodgson was promoted loan department.
Mr. Aagenes began his career as
to divisional vice president, Pat
Mahoney to vice president, and Louise an instalment loan officer with the
1st National Park Bank, Livingston,
Cook to assistant cashier.
Mr. Hodgson’s Billings banking in 1967.

83
tional Bank, according to Harold
Walters, bank president. Mr. Higday
is vice president and general manager
of Cheyenne Light, Fuel and Power
Company.

Wyoming
News
R. W . MIRACLE
M. C. MUNDELL

President
Secretary

Casper
Laram ie

Preston To Head New
Rock Springs Bank
Robert V. Preston has been named
executive vice president and chief
executive officer of the soon-to-beopened Bank of Wyoming, N. A.,
Rock Springs, according to Paul L.
Howes, president of Wyoming Bancorporation, parent company of the
new bank. Mr. Preston has been a
banker for 13 years.

Henry Hewitt to vice president and
cashier and Robert Adams to vice
president.
Mr. Hewitt has been with the
bank since October of 1969 and
previously served as assistant cashier
and cashier. Mr. Adams joined the
bank in June of 1969 and was assis
tant cashier and assistant vice presi
dent before becoming manager of
the instalment loan department.

Chugwater Bank Elects
John Baker Director
John L. Baker, area farmer, re
cently was elected to the board of the
First National Bank of Chugwater.
Mrs. LaVerne McGuire was elected
assistant cashier.

Hilltop National Bank
Announces Promotions
Marion D. Ellis has joined the
Hilltop National Bank, Casper, as
executive vice president, according
to N. P. Van Maren, Jr., president.
Other promotions announced include:
Murray E. Hanway, operations officer;
Wilson C. Durham, assistant opera
Jackson
Hole
Director
tions officer; Judith G. Doing, auditor;
Wybanco Names
Peter B. Mead, area rancher and and Audrey C. Oellrich, commercial
Director, Officer
long-time resident, has been elected
E.
John Diedrich has been named to the board of directors of The First loans and Janet E. Summerford, instal
vice president of investments for National Bank of Jackson Hole. The ment loans.
Mr. Ellis comes to Hilltop from the
Wyoming Bancorporation (Wybanco), announcement was made by Chadwick
First
State Bank, Cody, Wyo., where
Cheyenne-based registered multibank H. Carpenter, chairman.
he
had
been vice president and cashier.
holding company.
Prior
to
his tenure there, he was with
A veteran of 25 years in banking,
the
Federal
Reserve Bank of Min
Elected
at
Cheyenne
Mr. Diedrich began his career at
neapolis
where
he was assistant exam
James
L.
Higday
has
been
elected
the Colorado National Bank in Denver
iner.
a
director
of
the
East
Cheyenne
Na
in 1949. From 1951 to 1972 he was
associated with Central Bank & Trust
Company in Denver where he rose
to vice president and manager of
the investment division. In 1972 he Wyoming Nat’l, Gillette, Holds Open House
became president, director and chief A
N OPEN house celebration was floors, a basement and ground level
executive officer of the American
held recently in the new building of 5,400 square feet each. The bank
Heritage Bank and Trust Company in
of the Wyoming National Bank of occupies 3,630 square feet of the main
Colorado Springs.
Wybanco also announced the elec Gillette, according to M. Hale Kreycik, floor. There are 3,940 square feet
of finished basement with the remainer
tion of Patrick J. Quealy as a director. bank president.
Construction on the bank’s per- to be used for future expansion,
Mr. Quealy is president of Quealy
manent quarters began last October.
The bank features four drive-up
Services, Western Oil Refining Co.,
During this period the bank con- windows, two vaults, night depository
and Tip Top Finance Co. all of
Kemmerer. He also is chairman of the ducted business from a mobile unit and a community room,
situated adjacent to the new building
General contractor was Roche
First National Bank of Kemmerer
site. The bank opened on October Constructors, Inc., of Greeley, Colo.
which recently became affiliated with
18, 1974.
Architect-planners were Gorder, South
Wyoming Bancoporation.
The new building consists of two & Associates of Casper and Gillette.
Grand Opening at Burns
Grand opening was held recently
at the Farmers State Bank of Burns.
Dennis Wallace is the bank’s presi
dent.
First National, Rawlins,
Promotes Hewitt, Adams
George Mcllvaine, president of
the First National Bank of Rawlins,
has announced the promotions of

SHOWN i$ the new building for the Wyoming National Bank of Gillette.
N o rthw estern

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Federal Reserve Bank of St. Louis

Banker,

A p ril

1975

State Bank of Green River
Elects Stewart Director
Thomas L. Stewart has been elected
to the board of the State Bank of
Green River. He was an area resident
in his youth and returned last April as
senior vice president of the bank.
Mr. Stewart began his banking
career with the First Security Bank
in Rock Springs in 1946. He later
joined the First National Bank in
Denver and the Wyoming National
Bank in Casper where he stayed for Bank of Idaho Promotions
21 years. From 1948-53 he was an
Lonnie G. Bailey and Douglas
assistant national bank examiner.
M. Kelly have been elected senior vice
presidents and regional administrators
First Cheyenne State
for Bank of Idaho, Boise, according
Promotes 2 Officers
to Joseph Bianco, bank president. Mr.
Ralph L. Owen, president of First Bailey has charge of the northern
region and Mr. Kelly the southern
Cheyenne State Bank, has announced
region.
Both men joined the bank in
the promotions of Mai R. Burnside
1972.
to assistant vice president in charge
of lending operations and Jean Butler
Twin Falls Bank
to cashier.
Mr. Burnside joined the bank in Elects 1975 Officers
Curtis T. Eaton, chairman and
May of 1972 as an assistant cashier
in the instalment loan department. president of the Twin Falls Bank &
Trust Company
He holds an associates degree in
announced re
business administration from Laramie
cently the election
County Community College. Mrs.
of officers for
Butler, who will head the operations
1975 at that in
department, is an 11 year veteran of
stitution.
the banking business. Prior to joining
Those elected
the bank at its inception in October
to new positions
of 1968, she was associated with
included H e l e n
Cheyenne National Bank.
McCallie as se
nior vice presi
First National, Casper,
dent, g e n e r a l
Announcements
Mickey L. Asbell has joined the credit. Mrs. McCallie was formerly a
First National Bank of Casper as vice president and will continue in her
a commercial ioan officer and Karl additional duties as secretary of the
K. Pingel has been promoted to corporation.
Elected as assistant vice presidents
assistant trust officer, according to
were: A1 Jossis, manager of data
Henry A. Hitch, bank president.
Mr. Asbell formerly was associated processing; Norma Prestidge, co
with the Wyoming National Bank of ordinator of operations; and Helen
Gillette. Mr. Pingel was with the C. Tulloch, assistant manager, Blue
First National Bank of Chicago before Lakes office.
In addition, newly appointed offi
joining the Casper bank.
cers included: Lynn R. Baird, instal
ment loan officer; William C. Runty,
Skyline Bank Board
collection officer; Thomas E, Steele,
Elects New Director
Theodore Washburne has been trust officer; and Soren Andersen, loan
elected a director of the United Bank officer at the Blue Lakes office.
of Skyline, according to Terrence
J. Ryan, president.
Idaho First National
Mr. Washburne, now a private Elects 2 Directors
real estate investor, was a senior vice
Thomas C. Frye, president of The
president of the United Bank of Idaho First National Bank, Boise,
Denver and had been associated with has announced the election of two new
that bank for 20 years.
directors. They are Peter T. Johnson,
His election enlarges the board to president of the TRUS JOIST Corpo
six members.
ration, and Philip B. Soulen, president
Northw estern

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19 7 5

of Soulen
Weiser.

Livestock Company of

To Head Idaho Bank
Computer Office in Boise
Idaho Bank & Trust, Pocatello,
recently began a computer satellite
operation in Boise and named James
B. (Jim) Andersen to head the depart
ment as data processing officer.
IB A Calendar
May 2-3 — Young Executive Bank
ers Convention, Rodeway Inn,
Boise.
June 15-18 — Annual Convention,
Sun Valley Lodge, Sun Valley.

Washington News

R. E. BANGERT
S eattle
President
W ashington Bankers
Association

Named at Ranier Bank
John S. Hinchman has joined
Rainier National Bank, Seattle, as
senior vice presi
dent in charge of
the national divi
sion of corporate
banking.
Mr. Hinchman
previously w as
vice president and
head of the cor
porate finance di
vision at First Na
j . S. H IN C H M A N
tional Bank of
Chicago. He also has been a partner of
Blyth Eastman Dillon, and a vice presi
dent in commercial banking of The
Northern Trust Company of Chicago.
Tacoma Bank Opens in
New Headquarters
United Mutual Savings Bank, Ta
coma, recently held a month-long open
house in its new, seven-story head
quarters building. The dedication
ceremony of the $1.6 million edifice
was highlighted by the sealing of a
time capsule containing memorabilia

85
office at 20 Division Avenue
Eugene.

Utah
News

First of Oregon Opens
New Redmond Facility
First National Bank of Oregon,
Portland, recently opened a new
$340,000 building for its Redmond
branch.
The 4,250 square foot structure
features complete banking services.
The office is managed by Carl Leth,
a bank employee since 1968. It
replaces the existing temporary office
which was opened in May of 1973.

United Mutual Savings Bank of Tacoma.

of the bank since its founding in 1916.
Notable attributes of the building in
clude exterior precast concrete panels,
sandblasted to achieve the surface
texture, each weighing about 10 tons;
landscaping of native rhododendrons
and Linden trees in raised planters;
and a large fountain.
The interior decor consists of riftsawn Appalachian white oak and Bel
gium linen accented by brightly
colored furniture. The ceilings on the
main lobby levels were designed to
provide an incandescent look due to
the number of gray days experienced
by the Pacific Northwest.
Architects Lea, Pearson & Richards,
Project architect Douglas Babbit and
Macdonald Building Co., all of
Tacoma, collaborated in constructing
the building which took 682 days to
complete.
The building is headquarters for
12 branch offices and houses the
main office and administrative staff.

CALVIN H. SWENSON
Lehi
President
Utah Bankers
Association

Zions 1st Nat’! Promotions
Roy W. Simmons, president of
Zions First National Bank, Salt Lake
City, has announced the following
appointments: Ralph B. Hibler, sec
ond vice president, Master Charge
department; Sharon L. Clark, assis
tant vice president, Master Charge;
Thomas R. Atkin, assistant vice
president, collection department for
instalment loans; Curtis B. Kindred,
second vice president and manager
of dealer financing for instalment
loans; Fred J. Nydegger, loan officer,
and Michael D. Larson, loan and
operations officer.

Opens New Office
First National Bank of Oregon,
Portland, recently marked the com
pletion of its new $750,000 Washing
ton Square branch building with an all
day open house, according to Donald
Pieters, manager.
The new two-story structure features
over 13,000 square feet of floor space
with 13 teller stations, safe deposit
facilities, two drive-in windows, night
depository and a First Day and Night
Teller.

]

'S-ts reason enough
fora trip ta Cfhicaqo
■ M o d ern ele g an c e w ith a tru ly
F ren c h flair.
■ T h e e lite a tm o s p h e re of a n exclusive,
in te rn a tio n a l h o te l.
*

S p a c io u s s u ite w ith its ow n all-e le ctric
k itc h e n /b a r fo r g ra c io u s e n te rta in in g .

' ■ * > / * S to *A « U
for

tru e

P a ris ie n n e

to n e

h a u te

c u is in e .

Oregon

■

C o m p lim e n ta ry c o n tin e n ta l
se rv e d in y o u r s u ite .

News

O v e rlo o k in g s h o re of L a k e M ich ig an .
A d j a c e n t to b u s i n e s s L o o p a n d
sh o p p in g .

b re a k fa s t

ALDEN L. TOEVS
C orvallis
P resident
O rego n Bankers
Association

U.S. National Opens
2 New Offices
The United States National Bank
of Oregon, Portland, has opened a
new drive-in branch at 11543 S. W.
Pacific Highway in Tigard, and an

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Federal Reserve Bank of St. Louis

30 Floors of Dramatic Suites
— and Master Bedrooms

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WRITE TODAY FOR COLOR BROCHURE AND TARIFF

CONTACT WILLIAM C. WOLF, Gen’l Mgr. (312) 943-1111
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N orthw estern

Banker,

A p ril

1975

86
1

p
10

,6t

0
c

u
13

u
s

R
12

US National
Bank
OMAHA
N o rthw estern

B an ke r, A pril

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Federal Reserve Bank of St. Louis

1975

u S

C
E

E
9

FULL
SERVICE
IS NO
PUZZLE!

ACROSS

DOWN

1. The toll free number for cor
respondent bankers In Ne
braska.
2. The toll free number for cor
respondent bankers In states
adjoining Nebraska.
3. The U.S. National Bank's
' team' that services over 300
correspondent banks and
keeps In regular contact by
phone and in the .
4. Jay Bordewick is .
of Correspondent Bank Di
vision.
5. Payroll, Commercial loans, In
stallment loans, DDA. Savings,
CD’s, Mortgage Loans, and
Bond Portfolio Analysis are
that
the U.S.N.B. provides corre
spo nd en t custo m e rs (2
words).
6. The U.S.N.B. is a “ full service"
institution fo r________
banks.
7 The United States National
Bank is in
8. Come in and have coffee or a
one at
the convention.
9. The bank that paid for this
advertisement.

10. Daily clearing of transit items,
federal and regional for the
fastest availability of funds —a
service of the U.S.N.B. (2
words).
11. The bank credit card service
available through the U.S. Na
tional Bank (2 words).
12. See you at the Nebraska State
Convention
4, 5, & 6.
13. There are nine men in the
Correspondent Banking Divi
sion of the
__
in
Omaha.
14. Respondent Banks alwayscan
rely on the
for
help in just about anything.
15. Purchase of Excess Funds,
Transfer of Funds, Bank Stock
Loans, Certificates of Partici
pation, Currency and Coin,
tickets to football, baseball,
shows, etc., are some of the
the
U.S. National Bank provides
(2 words).
16. Estate Planning, Safekeeping,
Pension and Profit Sharing
Plans, and Investment Counciling are_
the U.S. National Bank pro
vides (2 words).

78TH ANNUAL CONVENTION

Nebraska Bankers
Association
R. E. ADKINS
President

R. E. BURKLEY
Vice President

Omaha Hilton Hotel
May 4, 5, 6,1975

R. E. HARRIS
Executive M a n a g e r

MAJOR look at the nation’s energy requirements
and consideration of important changes in articles
and by-laws of the NBA will highlight the 78th annual
convention of the Nebraska Bankers Association in
Omaha next month. The meeting will be held May 4-6
at the Omaha Hilton hotel. Presiding at all sessions will
be NBA President Richard E. Adkins, president of the
Osmond State Bank. Vice president the past year has
been Robert E. Burkley, chairman and president, First
National, Fairbury. Robert E. Harris is executive
manager.
Featured on the energy program will be Yousef
Alireza, a Saudi Arabian oil executive, who will fly in
from that nation for the convention; Dr. Samuel J.
Tuthill, energy spokesman for the Midwest Governors
Conference, and Frank Ikard, president of the
American Petroleum Institute.
One of the important by-law changes to be discussed
is in the election process. The nominating committee
would continue to be made up of a member of each of
the present six NBA groups, but would also have the

three living immediate past presidents. This committee
would meet at least 30 days prior to the annual
convention and make its nominations known to the
membership at least 10 days prior to the convention.
Nominations still could be made from the floor. The
vice president also would be designated as PresidentElect, thus each year a new vice president only would
be elected. The fiscal year would be changed from
October 1 to May 1, and all committeemen would have
terms of two years, with half appointed each year by
the president. Another major change would expand the
executive council from two Omaha representatives to
four, with at least two from banks of $200 million assets
or less to assure suburban bank representation. Also,
Lincoln membership on the council would expand from
two to three, with at least one from a bank with assets
of $200 million or less. The meeting of Monday after
noon, May 5, will be devoted entirely to these changes,
elections and other business. Any by-law and article
changes on elections would not be effective until the
following convention.

CONVENTION PROGRAM
Sunday, M ay 4
P. M.

Noon
2:00
6:30

Registration—Mezzanine (until 6:00 p.m.).
Executive Council meeting.
Executive Council, Past Presidents’ Dinner.

12:00

M onday, May 5
A. M.

P. M.

7:30
7:30

2:00

Breakfast—NBA County Representatives.
Breakfast—Wisconsin Graduate School of
Banking and Colorado School of Banking.
Present and past students.
8:00 Registration—Mezzanine.
9:00 B usiness Session. P re s id in g —R ichard E.
Adkins, president, Nebraska Bankers Associa
tion; president, Osmond State Bank.
Welcome—Omaha Mayor Ed Zorinsky.
9:30 Dr. Samuel J. Tuthill, chairman, Task Force on
Midwest Energy Requirements and Environ
mental Protection, Midwest Governors Confer
ence; head of Iowa State Geological Survey,
University of Iowa, Iowa City.
10:15 Coffee Break.
10:45 Address— Yousef Alireza, manager, project
evaluation, Petromin (General Petroleum &
Mineral Organization), Riyadh, Saudi Arabia.
11:15 Report —William Riley, director of banking,
State of Nebraska, Lincoln.

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Federal Reserve Bank of St. Louis

4:30
6:30

Legislative Report—Sen. J. R. Murphy, chair
man, Banking, Commerce and Insurance
Committee, Nebraska Legislature.
Luncheon—Main Ballroom.
Address —Frank Ikard, president, American
Petroleum Institute.
Business Meeting. Discussion of proposed
changes in by-laws and articles; election of
officers.
Hospitality suites open following conclusion of
business session.
B anquet—President Adkins presiding.
Entertainment and dinner music by Omaha
Symphony.
Tuesday, May 6

A. M.

7:30
9:00
9:30
10:15
10:45
11:15

Delegates’ Breakfast.
Speaker to be announced.
Address —Gerald M. Lowrie, executive direc
tor, ABA government relations division.
Coffee Break.
Address—Frank Blair of NBC “Today” show.
Address —The Hon. George Nigh, Lt. Gov. of
Oklahoma.
N o rth w e s te rn B an ker, A p ril 1 9 7 5

N ebraska

N ew s

You Will See Them at the 78th Annual
Nebraska Bankers Association Convention
r P H E following metropolitan bankers, investment men and service
equipment dealers have indicated they
will be attending the 78th annual
Nebraska Bankers Association Con
vention in Omaha, May 4-6.

Kansas City
Commerce Bank of Kansas City:

Chicago

P. V. Miller, Jr., president; Fred N.
Coulson Jr., senior vice president;
Tom C. Cannon and Edwin B. Lewis,
vice presidents.
First National Bank: William Dex
ter, senior vice president.

American National Bank & Trust
Company: Michael J. Byrne, corre

United Missouri Bank of Kansas
City: Don V. Thomason, senior vice

spondent officer, and Warner B. Frohman, agricultural officer.
Continental
Bank:
George L.
Schueppert, vice president, and Wil
liam D. Michael, correspondent bank
officer.
First National Bank: R. Garth Dunn,
Jr., vice president, and John W. Ballentine, loan officer.

president, and John House, assistant
vice president.

The

Northern

Trust

Company:

Frederick C. Pullman, vice president;
Philip J. Carlson and Orrin A. Wilson,
second vice presidents.
Denver
Central Bank & Trust Co: Don

Echtermeyer, vice president; Bill Tumelty, correspondent bank officer.
Colorado National Bank: William
J. Fleming, vice president.
First National Bank: Jerome B.
Woods, vice president; Jack G. Haselbush, assistant correspondent banking
officer.
United Bank of Denver: Don Pet
ring, correspondent bank officer.

Lincoln
National Lincoln:

Burnam
Yates, chairman; William C. Smith,
president; Jack Moors and Walter
Nolte, executive vice presidents; David
Patrick and Robert Northrop, senior
vice presidents: Chas. Leffler, Eames
Irvin, Duane Schainost, James Bullock
and Dale Young, vice presidents.
National Bank of Commerce: Glenn
Yaussi, chairman, and Jim Stuart, vice
chairman, NBC Co., Bank officers —
Paul J. Amen, chairman; J. D.
Schiermeyer, president; James F. Nissen, Herman A. Brockmeier and Ross
Hecht, executive vice presidents; Wil
bur H. Baack, Robert L. Hans and
Robert S. Hinds, senior vice presi
dents; Jack Julian, Richard D. Wible,
Dale L. Blanchard, Richard J. Stchly,
Michael T. Higgins, vice presidents;
Duane L. Nelson, Richard P. Nelson,
Jim Norris, Ray Weilage, assistant vice
presidents; Ronald D. Peterson, inter
national banking officer; Walt Yetter,
First

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LIFE

marketing officer; Scott Sipherd, mar
keting department.
New York
Bank of New York: John Hunter,

assistant vice president.
Chase Manhattan Bank: J. J. La-

Russo, second vice president.
First National City Bank: Frank J.
Utting, vice president, and John J.
Fauth, account officer.
Manufacturers Hanover Trust Com
pany: David S. Tackett, vice president,

and Earl H. Lundin, Jr., assistant vice
president.
St. Joseph
National
Bank:

Benton
O’Neal, senior vice president, and Earl
N. Haldeman, III, assistant vice presi
dent.
First Stock Yards Bank: John E.
Kara, executive vice president; Philip
R. Miller, vice president.
First

Sioux City
First National Bank: Chas. H. Wal

cott, executive vice president; Gary W.
Stevenson, vice president, and Douglas
L. Van Meeteren, correspondent bank
officer.
Northwestern National Bank: Jerry
Just, vice president, and John Thom
son, marketing officer.
Security National Bank: Thomas C.
Horn, executive vice president; R. E.
Hagen, vice president, and Jim Hongslo, correspondent bank officer.
Toy National Bank: Rich A. Breyfogle, vice president, and Leo Stavas,
assistant vice president.
San Francisco
Bank of America: James L. Peters.
Bank Equipment and Other Firms
Bank Building Corporation: Doug
las Carr, consultant services manager,
central division.
First Mid America, Inc.: Lawrence
A. Carlson, senior vice president; Gary
W. Fenster, John J. Frenking, Merrill
R. Johnson, David C. Kuehl, Edwin
G. Milder, Michael L. Scherr, Eldridge B. Scurr and Raymond E
Sharpe.
Robert E. Schweser Company, Inc.:

William March, president; Frank E.
Williams, executive vice president, and
Robert E. Roh, vice president.
NYTCO Services, Inc.: Mike Meyer,
vice president; Chuck Distler and Steve
Mashek, all of Omaha office.

Joins Nebraska State, Ord
Greg Stine has joined the Nebraska
State Bank of Ord as vice president
and trust officer.

Solving problems
involving the establishment
and administration of
Demand Deposit
Accounting

One more way
we are uniquely
equipped to
help you.

FIRST N A T IO N A L L IN C O L N
Box 81008 • Lincoln, NE 68501

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N o rth w e s te rn B an ker, A p ril 1 9 7 5

N ebraska

News

Nebraska Group Presidents Report on
Area Farm and Financial Conditions
W. W. COOK, JR.
President
Beatrice National Bank & Trust Co.

President
Group 1
I T appears as though the 1975 year

will be most critical for the Group I
area. The area encompassing Group
I banks caught the brunt of the 1974
drought. Most of the farmers in the
area were able to harvest at least
a partial crop; and, with the prices
being rather high at the time of harvest
many of the farmers came out better
cash-wise than they had anticipated.
Our farm customers are now
approaching the 1975 row crop season
with mixed emotions. With the in
creased prices on feed, fertilizer and
fuel, a substantial investment will
be necessary to plant the spring crops.
If this area were to have another dry
season in 1975, there would be a
number of farmers who would have
a hard time. As mentioned above, most
of them could not stand another
drought in 1975. Expansion of irriga
tion systems in the area will be of some
help.
Farm customers in the Group I area
taking the hardest brunt of 1974 farm
prices were our cattle feeders. Many
feeders sustained large losses and have

We can h e l p y o u

been helped somewhat by the govern
ment insured loan program and the
disaster loans. There are fewer cattle
on feed in our area and feeders are
quite apprehensive on putting re
placement cattle in their feed yards.
This year will continue to be a most
difficult time for the cattle feeders.
A brighter outlook appears to be in
store for the hog feeders. Prices are
good on the finished animal, but, of
course, feed prices are high which
reduces the total profit for the hog
feeder.

a slow down in production is noted.
1975 does not appear to be a banner
year for agriculture in general. High
costs of seed, fertilizer, chemicals
and fuel will again put the squeeze
on the farmer. The grain farmer had
a banner year in 1974 if he marketed
his crop at the peak. 1975 price will
be somewhat lower. The dryland
farmer in many cases cannot survive
another dry year. The irrigator will
make it if he avoids a disaster such as
hail or some other catastrophe.
Cattle feeding is down in our area,
many feeders depending on dryland
crops are not feeding because they can
not see a profit at the present market
situation.
Our subsoil moisture has been de
G ROUP 2 is a very diversified area.
pleted and dryland farmers are being
It has industrial, commercial and cautious about crop expenses for 1975.
agricultural areas. All are not without Poor crops in 1975 will tax their
some degree of difficulty. It is fortunate credit ability to hang on for another
that Group 2 is not heavily industrial year. Lower cattle prices have aggra
ized or commercialized but the present vated their plight. The only bright
recession as such will have its effect. outlook is hog production. Feeders
Unemployment as yet is not as serious are selling for dollar a pound and are
as in the larger metropolitan areas but the only ones that are making money
at the present time. Hog production
may be overdone, as bred gilts are
. . .
selling as high or higher than bred
cows.
It will be difficult in 1975 for
banking to show a profit. This is
especially true for small banks that
are paying interest on 62 to 65% of
their deposits and with loan volume
dropping. Bankers may have to look
for higher income loans such as instal
ment loans on machinery and leasing
of farm machinery and pivot irrigation
systems.
1975 is not a year for great
optimism.
H. KEITH NEWTON
Executive Vice President
The Albion National Bank

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NBA and IOW A GROUP MEETINGS

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Federal Reserve Bank of St. Louis

I feel that the over-all economic pic
ture in the Group I area compares
more favorably than other areas. Agri
cultural production is still the back
bone of the area but the manu
facturing plants in the small com
munities take up some of the slack
that could be lost in farming opera
tions. Recent press releases indicate
growing unemployment in the larger
cities included in the group but these
unemployment figures are still much
below the national average.
In summary, it would appear that
this area can anticipate an average
year economically if spring rains are
sufficient and if our manufacturing
companies continue to produce at near
full capacity.

NSC

hopes you will attend the

GALA AFFAIR
of the year!

★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★

May fourth through sixth.

Hilton Hotel, Omaha

NEBRASKA BANKERS ASSOCIATION
Convention

★

A Riverboat Extravaganza!!!
Meet your colleagues.
Talk shop.

be sure to visit

NBC Riverboat
Casino Hospitality Room
A REJUVENATING EX PER IENCE FOR ONE AN D ALL!
See you there.

NBC

N atio n al B a n k o f Com m erce

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

N eb ra ska N e w s

F irst S tate Bank, Enders, Rem odels, Expands

THIS one-story building for the 1st State Bank in Enders was recently opened. The
2,400 sq. ft. building was partially remodeled and about 800 sq. ft. were added includ
ing 3 offices, storage room and restroom. On the exterior, brick & granite were used to
match the existing front. Bank Building Corporation, St. Louis, was the consultant and
construction manager for the project, and Wiburn C. McCormick was the architect.

CHARLES E. FROELICH
Assistant Vice President
First National Bank,
O'Neill

President
Group 3

BELIEVE that 1975 will be a
year of overall improvement for

the banking industry. Banks should
have an opportunity to rebuild much
of the liquidity that was reduced in
1974.
Continued high interest rates and
less severe loan demand should pre
cipitate this and increase bank earn
ings. We all realize that loan losses
in the cattle industry, especially the
feeding program, will affect our
economic growth, but we should ex
pect an off-set with the increased
productivity of commercial feed in
our area.
Actual costs to the agriculture
community will remain high, with
great emphasis on even higher fuel

JUSTthe man you're looking for!
Jerry Just

NORTHWESTERN
BANK
Of Sioux City
An Affiliate of Northwest Bancorporation

N o r tfor
h w FRASER
e s t e r n B a n k e r , A p r i l 1 9 75
Digitized
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Federal Reserve Bank of St. Louis

and fertilizer costs. These factors
coupled with low cattle prices for at
least the first three quarters of this
year will create higher demand for
operational type loans and less for
speculative borrowing.
I, therefore, feel that acute demand
we had early in 1974 has diminished
and should give us in the banking in
dustry a great opportunity to strength
en individual bank balance sheets.
We will approach the fourth quarter
of this year with guarded optimism for
the farm and ranch segments of our
economy. With inventory replacements
running higher at that time, job
opportunity and investment capital
should increase, bringing about a
stabilization in prices. For our area,
a slow recovery is in sight.
RAY VAN NORMAN
Vice President
Minden Exchange Bank & Trust Co.

President
Group 4

66nn HE squeeze appears to be on
-*■ again — and this time the fate
of the nation’s entire agricultural
economy hangs in the balance.”
I believe the above statement sum
marizes the situation throughout the
Nebraska Group 4 area. This area’s
economy is dependent almost entire
ly on agriculture, and on agriculturallyrelated industries.
After two years of good conditions
for grain farmers (especially those
who irrigate and were not hit hard by
the drought), present indications are
that the honeymoon is over.
Farmers are faced with astronomical
production costs for 1975. This fact,
coupled with the mystifying, dramatic
fall in grain prices, lends credence to
the possibility of a major cutback in
production acres for the upcoming
crop year. It is a little difficult for a
farmer to heed the “feed the world”
call if he can not receive a break-even
price for what he produces.
We all know the catastrophic con
dition of the beef industry. Those who
have survived are looking ahead with
a little more optimism than a year ago

Banking has changed dramatically in the last five years, and First National has
changed with the times!
Our computer services division is just one example. Experienced and competent
men like Loren Larsen, Bob Schmith and Darrell Elkins will work with you to
provide computerized customer accounting programs and a record maintenance
system to meet your bank’s needs.
To keep you ahead, we’re continually investigating new techniques in such
developing areas as automated accounting, P. O. S. (Point-OfSale Terminals), and automated clearing houses.
Together, we’ll keep pace with the times. Call
Gary Stevenson or Doug Van Meeteren, today!

FIRST N A T IO N A L B A N K
DEPOSITS INSURED TO $40,000 BY F.D.I.C.

in Sioux City

See you at the Nebraska Bankers Convention!
GARY STEVENSON
Vice President

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

DOUG VAN MEETEREN
Correspondent Representative
N o rthw estern

Banker, A p ril

1975

Nebraska News

but it will take years to recoup the cause prices to stabilize, and possibly
losses inflicted during the past 18 drop off, in the next year.
months.
Bank deposits in the area showed
A decline in hog numbers through substantial increases in 1974. Loan
out the farm belt points to the possi demand diminished at the end of the
bility of moderate profitability in the year, but indications are that higher
next few months, and the farmer production costs — along with the
who has been in the business on a fact that many farmers are holding
continuing basis should reap the grain for higher prices — will create
benefits this time around.
a lot of pressure on loan-deposit ratios
Farm land prices in the area ex in the near future.
ceeded the percentage of national
Retail sales in the Group 4 area,
upward trend during the past 12- with inflation factors considered,
month period. Uncertainties in the showed healthy increases during 1974.
total agricultural picture will probably Businessmen in 1975 seem to have a

cautious attitude, and are hoping to
hold even on volumes while trimming
operating costs wherever possible.
In summary, it is my opinion that
this area is looking to our govern
mental center for some ray of hope.
The “credibility gap” as concerns
economics has reached the proportions
of the Grand Canyon. The question of
central concern here is: “Does the
world need the food we can produce?”
And, if so, “Is this food worth the
price it costs to produce it?”
In the answer to these questions
will be found the key to 1975, and
to all years in the future, for all
business — farming, retail and indus
try — in this area.
K.
A. WHALEY
Executive Vice President
Farmers State Bank
Sargent

XTREMELY Optimistic” were
the words used last year to
describe the agricultural and business
conditions of the Group 5 area.
The same words are still pertinent
over the long term. We have many
resources. In one publication the years
1975-2,000 are predicted to bring
more growth than the last quarter
century.
For the most part Group 5 is an
agricultural area. We say “livestock
is the backbone of our economy” but
with the development of irrigation,
the production of grain and hay have
become significant.
For several years prior to 1975
livestock prices have been favorable.
During the same period rainfall has
been fairly adequate aiding our ability
to produce crops. Grain prices im
proved for 1973 and 1974 for those
who sold their crops. Profits were up
increasing cash flow. In cases, to
avoid excessive income tax, capital
purchases were made and future debt
accepted.
When living becomes too easy over
too long a period we are inclined
to become lax. Our wants take preeHi

Actually, our 50th year in business isn't all that different from our
first 49 years. KPSP has always been dedicated to the highest stan
dards of investment service. Our most vital concern has been the
support of the business community and governmental bodies in our
part of the Midwest.
So when you see us at the Nebraska Bankers Convention, w ell be
the ones with the big smiles on our faces-celebrating our Golden
Anniversary in business. Hope to see you there.
• joe Soshnik
• Glenn johnson

• Tad Dunham
• Stu Howerter

* Ted Thull
• George Easley

KIRKPATRICK • PETTIS
SMITH • POLIAN • INC.
1623 Farnam Street, Suite 700, Omaha, Nebraska 68102 402/344-4900

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Federal Reserve Bank of St. Louis

1975

N eb ra ska N e w s

edence over our needs. Our business
can survive with less management
and efficiency.
Now we are in a period of adjust
ment. With the decline in livestock and
grain prices while production costs
continue to rise, it doesn't take a
banker to recognize profit margins are
greatly curtailed. The amount of rain
fall received in the next 90 days will
improve or compound the existing con
ditions.
Most of our people in the area
have equity in their operations and
will continue to operate. Margins of
profit are expected to be low with
debt reduction difficult. Inventories of
vehicles, machinery, and irrigation
equipment seem to be adequate. In
some cases, it appears to be a buyers
market. Supplies of fertilizer and seed
corn are expected to be sufficient
though more costly.
When I returned from service after
World War 2, my banker advised
“Hold your cards close to your belly.”
Thirty years later 1 would give the
same counsel. Well-planned borrow
ing, good management in operations
and that little extra effort are always
an asset.

If it takes more management,
more efficiency, more effort to show
a profit, let's rise to the occassion and
continue to be leaders in our field.

agriculture conditions, excluding a
few non-agriculture industries; and
the latter will certainly come under
the influence of our current recession.
The Federal Land Bank is doing
a “land office business” as it is being
WILLIAM S. OLSON
flooded with real estate loan applica
Executive Vice President
tions. Insurance companies have been
Nebraska State Bank
limited to corporations on their loans
Oshkosh, Nebr.
because of the Nebraska usury rate.
These real estate loans could be at
tributed to cattle losses; capital de
mands beyond individual bank limits;
the normal land transactions; and
other isolated reasons.
It should also be mentioned that
American Beef Packers, Inc., and
The Great Western Sugar Company
continue to owe a few million dollars
in this area. The Farmers Home
Administration has come to our rescue
ARM and business conditions in on a few marginal lines with their
the Group Six area might best emergency programs plus regular
be described as precarious in the loans.
In 1974, we received approximately
spring of 1975. The cattle industry
is in an absolute depression, affecting 58% of our normal rainfall which has
most of the banks in Group Six. been followed by a dry winter. The
The prospects for any cash crop profit winter wheat is holding; but without
in 1975 are sliding as prices fall from the usual spring rains, severe damage
their record highs. Our main streets and low production will follow. That
are almost a direct reflection of our is possibly why a few of our pro-

S e e you a t the N .B .A . C onvention
C h il e s , H

e id e r

& Co., INC.

MEMBER NEW YORK STOCK EXCHANGE, INC.
1300 WOODMEN TOWER
OMAHA, NEBRASKA 68102 ■ (402) 346-6677

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Federal Reserve Bank of St. Louis

N o rth w e s te rn B a n k e r , A p r i l

1975

N eb ra ska N e w s

H oldrege Bank Holds G rand O pening

NEWLY remodeled and enlarged First National Bank of Holdrege.

ducers held the 1974 crop as it ex
ceeded the $4 price.
Our corn is primarily all irrigated.
Should the corn price continue its
decline below $2.50 and with crop
projection of 100 bu. average per
acre, it could suddenly become nonprofitable. Beans had been classified
a “winner,” until some of the dealers
started limiting their purchases. Sugar
beets, for those with the special
machinery and skills, seem to be the
most promising.
From about September of 1973 to

February of 1975 feeding cattle
has been a nightmare. Losses have
ranged from $200 to $30 per head.
Excessive numbers led to a cattle price
decrease, which triggered liquidation,
which in turn has fueled the price
depression. When will it recover? If
it rains near the normal amount, if
exports are limited, if cow numbers
or total numbers are less than pro
jected by USDA, if feed costs continue
to decrease, and (possibly other
factors), the feeder may start breaking
even one of these days. While the

T o g e t t h e m ost o u t o f y o u r i n v e s t m e n t
d o ll a r s , use c o m m o n s e n s e . . .

Call the experts!

They are always as near as your tele
phone — and also will be seeing you
during the NBA Convention in O m aha,
M ay 4 -6 .
Bill D aly

M ik e Van Horne

Don Anderson

C. W i l l i a m
INVESTMENT
1816 DOUGLAS STREET

N orthw estern

B anker, A p ril

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Federal Reserve Bank of St. Louis

Daly & ca.
SECURITIES

OMAHA, NEBRASKA 68102

MUNICIPAL BONDS
1975

•

R o y G. t e i b e e

STOCKS

(402) 346-8900
•

MUTUAL FUNDS

National Bank of Holdrege
F IRST
recently held a grand opening of its

remodeled quarters. Because the bank
needed to expand its officers’ area,
lobby, safe deposit vault, and driveup facility, the bank acquired adjacent
property for its remodeling project
and an 1,800 square foot addition.
The existing design was extended
on the exterior as well as on the
interior where carpet and tellers’
fixtures were reused.
Bank Building Corporation, St.
Louis, was the consultant and con
struction manager for the remodeling
and the addition. Wilburn C. Mc
Cormick was the architect.

producer might have to wait until 1977
before he receives some encourage
ment.
It has become a most difficult
period for Group Six bankers and
their customers. As a bank examiner
recently explained to me, “1 dread
the approaching year as an examiner.”
He was making reference to the severe
cattle losses, higher costs but lower
income on cash crops, and the national
economy. We will have to start looking
at land equity positions on many of
our customers over the next year or
so. If land prices do not continue to
inflate, net worths will shrink.
In summary, we must be most
cautious during this period of adjusting
supply and demand of agriculture
products, high costs of operation,
and the need for new confidence in
our national economy to support the
consumer’s food buying power. The
farmer and rancher should hope for
an income tax rebate law in 1974
as most of them will probably be in
a negative position in 1975.
Finally, the long range picture
could be excellent for Group Six farm
and business conditions as the food
demand will continue to increase.
And for that reason, we can and
will survive this depressed period.
Meanwhile, let’s hope it rains one of
these days.

North Platte Bank
Promotes Jensen, Wilson
James Jensen has been promoted
to vice president and cashier and
Carroll Wilson to assistant cashier
at the First National Bank and Trust
Co., North Platte. Mr. Jenson is in
charge of bank operations and has
been with the bank for 15 years. Mr.
Wilson has been with the bank for 20
years.

first n a tio n a l p e o p le .

A background of 26 years in the agricultural chemical business makes Bob Brown a real
asset to our correspondent banking department.
Bob spends most of his time on the road sharing his agri-business expertise with our
correspondent banks in Eastern Nebraska and Western Iowa. He believes in personal
contact. It's the best way to make sure you get all the service you need.
Let Bob Brown put his knowledge to work for you. Give him a call anytime. Toll free.

©
first n a tio n a l b a n k
of om aha
you're in first n a tio n a l territory
In Nebraska call us Toll Free at 800-642-9907 From States adjacent to Nebraska call us Toll Free at 800-228-9533.

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

Northw estern

Ban ker, A p ril

1975

Omaha News

r 1 1HE American National Bank
Morris F. Miller, chairman of the
recently held the grand opening of holding company and the bank, will
its newest facility at 90th and Maple assume duties of acting chief executive
Streets beginning with a green ribbon officer of the bank until a special com
cutting (composed of $5 bills), mittee of directors presents its recom
according to John M. Shonsey, board mendations for a successor “in the near
chairman.
future,” a spokesman stated.
The opening marked the beginning
Mr. Starr joined the bank in May,
of the use of the bank’s new name. 1969, moving from a bank in Detroit,
Since December of 1964, the Ameri Mich.
* * *
can National Bank had been known
as the West Omaha National Bank.
Cliff R. Rahei has announced the
* * *
reorganization of Rahei, Knack and
Frank O. Starr has resigned as presi Company under the new name of
dent and director of Omaha National First Omaha Securities Corp.
Corp. and as presi
Mr. Rahei is president of the firm.
dent and chief ex Other officers are Robert Perelman,
ecutive officer of vice president; J. Joe Ricketts, secre
The Omaha Na tary, and Ernest Field, treasurer.
tional Bank. The
Mr. Rahei said Mr. Perelman and
5 1-year old ex Mr. Ricketts, both formerly account
ecutive will be executives in Omaha with large
come chairman, New York Stock Exchange firms,
p r e s i d e n t and have recently joined the new company.
chief executive of The new firm has increased capital
ficer of Jefferson ization and all officers are full working
F. O. STARR
Bank and Trust in partners.
Denver, Colo.
First Omaha Securities Corp. is

believed to be the first Nebraska in
vestment firm to operate under the
new reduced commission basis re
cently implemented within the securi
ties industry. Mr. Rahei said they have
been reduced between 250% and 50% .
The company will continue at the
former address, 1611 Farnam Street,
and retain the same phone number,
345-7000.
James A. Irving, chairman and pres
ident of The First West Side Bank,
has
announced
the promotions of
Ronald Hale to
executive
vice
president, Patrick
M. Conway to
senior vice presi
dent, and Charles
R. Berry to as
sistant vice presi
dent and manager
of the Crossroads
Shopping Center facility.
Mr. Hale is commercial loan and
investment officer and a bank director.
He joined the bank in 1965. Mr.

P. M. CONWAY

C. BERRY

Conway joined the bank in 1961 as
supervisor of the bookkeeping depart
ment. He also has served as cashier
and presently serves on the board. Mr.
Berry is a graduate of the University of
Nebraska at Omaha and joined the
bank in 1973.

First Mid America, Qmaha-Lincoln based investment bankers, has
announced the election of John J.
Frenking as a senior vice president.
Mr. Frenking, a 1958 graduate of
Creighton University, has been asso
ciated with First Mid America in its
Omaha office since 1971. He is re
sponsible for the government bond
department.
*

Funeral services were held recently
for Clen L. Coon, retired purchasing
N o rfor
t h wFRASER
e s tern B anker, A prii
Digitized
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1975

O R C H ID S

s E X P E R T IS E

at the Nebraska Convention
Kansas Suite, Omaha Hilton

PATRICK H. RENSCH
Vice President and
Counsel
WILLIAM MARCH
President

HARRY E. COE
Vice President

FRANK E. WILLIAMS
Executive V.P.

C. W. POORE, JR.
Sec.-Treas.

MARY GENE TROYER
Asst. Sec.-Treas.

ROBERT E. ROH
Vice President

WM. (BILL) ABTS
Representative

JAMES E. BRADLEY
Representative

WAYNE RASMUSS
Operations Manager

THOMAS B. MEHL
Representative

MIKE MULLEN
Representative

It’s traditional . . . like

SCHWESER SERVICE
It has been our pleasure to present these orchids for nearly 20 years . ..
and we have been helping to build and improve cities, counties,
schools and industry in Nebraska for more than 30 years. Schweser
Service, like Schweser orchids, are traditional in Nebraska.

(402) 344-4611

TOLL FREE 800-642-8438

INVESTM ENT BANKERS - UNDERWRITERS
Member of the Securities Investor Protection Corporation

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Federal Reserve Bank of St. Louis

N o rthw estern

B an ker, A pril

1975

100

agent at the First National Bank. Mr.
Coon, 83, joined the bank in 1912 and
retired in 1959.
*
*
First National Bank has announced
the following promotions: Elias J.
Eliopoulos, director; AI C. Drouillard,
second vice president, commercial

E. ELIOPOULOS

A. DROUILLARD

accounts, and Denny M. Dickinson,
loan officer.
Mr. Eliopoulos, who joined the
bank in 1969, serves as vice president
and head of the operations division.
He is a native of Athens, Greece, a
graduate of Creighton University,
and he received his masters degree
from the University of Nebraska.
Mr. Drouillard is a business de
velopment officer in the corporate
accounts department. He has been with
the bank since January 15, 1953.
Mr. Dickinson is in the instalment
loan division and also works in the
newly formed leasing department.
❖

:¡=

U. S. National Bank, Northwestern

National Bank and Center Bank
sponsored The Royal Shakespeare
Company’s Omaha appearance March
11-16 direct from Stratford-on-Avon
in England. The performances sold
out.
A presentation of the University
of Nebraska at Omaha, this ap
pearance was one of only three stops
in the United States by the main com
pany of more than 50 people, con
sidered to be the world’s finest
English-speaking theatrical company.
The three Banco Banks offered a
special 10% discount on tickets
to encourage attendance.
* * *
Hal Childs, well-known in Nebras
ka and Iowa investment circles,
has elected to
take semi-retire
ment from Chiles,
Heider & Co.,
Inc., Omaha in
vestment firm. He
will continue to
represent the com
pany with bankers
on a limited basis
at bank meetings
H. CHILDS
and other bank
functions.
He is a native of Lenox, la., where
his father, Fred Childs was president
of the First National Bank. Prior to
World War II, Hal Childs was as
sociated with his father in the State
Savings Bank at Carson and served as
its president for a short time.

O m u A a ï/e c ff ttfie é
(FORMERLY RAHEL, KNAC K & CO.)

INVESTMENT BANKERS
Underwriters and Distributors
Municipal Securities— Corporate Securities

REDUCED COMMISSIONS ON STOCK TRANSACTIONS
Cliff R. Rahel

Bob Perelman

E. G. "Ernie" Field

Joe Ricketts

N o rth w e s tern B anker, A pril
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1975

Russell C. Browne has resigned as
vice president at The Omaha National
Bank to become an assistant to Comp
troller of the Currency Janies E. Smith,
working in the area of electronic bank
ing. He was scheduled to join the
Comptroller’s office in Washington,
D.C., on March 1.
Mr. Browne also will represent the
Comptroller on the National Study
Committee created by Congress to
make a two-year review of EFT.
* * *

Leslie C. Opper
Funeral services were held recently
for Leslie C. Opper, retired deputy
director of the State Banking Depart
ment.
Mr. Opper, 87, served as deputy
director from August 16, 1943, until
January 1, 1961, when he retired.He was state banking examiner from
1920 to 1923 and served as national ”
bank examiner for the Tenth Federal
District from 1924 to 1929.
* * *

Construction Begins on
Springfield State Bank
Construction has begun on a new
$275,000 office for the Springfield
State Bank.
The new building, with 6,200 square *
feet of space, will be located on a^
two-acre site at Sixth and Main Streets.
It will have a brick exterior with *
bronze glass panels. Midwest Bank
Builders and Designers of Omaha is
the general contractor for the project „
which is scheduled for completion
July 1.
* * *

Howard C. Hanson

OMAHA, NEBRASKA
1611 Farnam Street

Upon returning from service, Mr.
Childs joined an Omaha bond firm. He
resigned there in 1960 as vice presi- v
dent to join Chiles & Co. as vice presi
dent, continuing there in the same
position after the firm name was
changed to Chiles, Heider & Co.
in June, 1970. During his 30 years
in the investment business Mr. Childs
established a wide friendship with
bankers in upper midwest states.
r
He attended the University of
Nebraska and was a member of the
Innocents Society honorary group
during his senior year.

(402) 345-7000

Funeral services were held recently
for Howard C. Hanson, 70, president
and chairman of the Blair Bank since
1929.

101

THE CORRESPONDENT DEPARTMENT OF
THE TOY NATIONAL BANK IS LOOKING
F O R W A R D TO SEEING YOU AT THE
NEBRASKA

STATE

CONVENTION

OMAHA AND THE SOUTH

DAKOTA

STATE CONVENTION IN ABERDEEN.

TOY NATIONAL BANK
SIOUX CITY, IOWA

OMAHA
NEBRASKA

We Want to get Involved with you in Aberdeen and Omaha.

T O Y NATIONAL. BANK
FOURTH AMO NEBRASKA • SIOUX CITY, IOWA 51102

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Federal Reserve Bank of St. Louis

N o rthw estern

B an ke r, April

1975

102

Nebraska

News

o f the N o r t h w e s t e r n B a n k e r

News

letter.

William F. Grosser, president of
Interim ancial Systems, Inc., Holly-,
wood, Cal., gave a “National Over
view of EFT,” based on his experience
gained as a consultant to projects
in Wisconsin and California, as well
as with the Federal Home Loan Bank
Board and First Federal S&L, Lincoln.
He said EFT is gaining priority
and is here to stay — “it’s not going
away.” He gave a review of experience
gained in various places that have ex
perimented with EFT, citing volume
flow and service provided, as well
as competing with S&Ls who have*
RICHARD Doolittle (second from left), exec, dir, of Graduate School of Banking at the been given pretty much of a free
University of Wisconsin, reviews with Nebraska Bankers Assn, officials the literature on rein by the FHLBB to develop elec
the GSB’s new film, “The Future in Your Hand," which had its premiere showing at
tronic systems.
the NBA Bank Management Conference. Left to right are: Robert Burkley, NBA v.p.
He said “S&Ls feel they have to get
and chmn. & pres, of 1st Natl., Fairbury; Mr. Doolittle; Dick Adkins. NBA pres, and pres,
of Osmond State, and Bob Harris, NBA exec, mgr., Lincoln.
into this (EFT) for survival. The
big advantage still weighs in favor
of commercial banks. The big ad
vantage that S&Ls have is that they
are mostly on-line. In California,
for example, they are 96% on-line.
By BEN HALLER, JR.
Other than this, commercial banks
Editor
have the better experience in all as
pects of banking and service to *
customers.
A CONCENTRATED look at many ly opposed opinions about the urgency
“The crucial time is here in Ne
phases of electronic banking of developing EFT either on a state
was provided for Nebraska bankers wide or a national level. Howard Bell, braska — you can’t stand still. If
who attended the Nebraska Bankers executive director of the Independent you do, you will stagnate. Don’t stand
Association’s annual Bank Manage Bankers Association of America, with for a moratorium. This merely lets
ment Conference early last month in headquarters in Sauk Centre, Minn., competitors develop programs, train
Lincoln.
gave his reasons why the proposed their people and take over in
The program offered the viewpoint two-year moratorium should be ob Nebraska, serving your customers.
of independent bankers, a national served. John Dean, president of First . . . What’s trying to be done is save
view of EFT from a national con Federal Savings & Loan, Lincoln, S&Ls so they can serve their customers
sultant, a practical view of TMS and developer of the TMS program, and their purposes . . . I urge you
from its founder, and a look at the gave his reasons why EFT develop just to do your own thing and do it
operations and legislation of NETS ment should proceed as rapidly aggressively.
“Will EFT hurt small banks?
in its current stage.
as possible. Digests of their comments
Presiding at the one-day conference were presented in the March 24 edition Definitely no! Everyone has different'
views and perspectives.”
was Ted Armbruster, chairman of the
He commended the NETS program,
NBA committee on bank management,
stating smaller banks were lucky
insurance and protection. He is
to have access to it and at low cost,
also president of the Nebraska State
with service to their customers as they
Bank & Trust, Broken Bow.
travel anywhere in the state. He Richard Adkins, president of the
cautioned bankers not to be fearful
NBA and president of the Osmond
of sharing of the system and predicted
State Bank, quickly reviewed the
that by 1980 they will be doing this
Nebraska Electronic Transfer System
not only with EFT but with other
(NETS) from its inception one year
facets of banking.
ago, stating “it is the only system
He closed by urging bankers to do
permitting participation by all Ne
their homework, get involved, do
braska banks. The difference is at
it in unity, and build NETS with the
the terminal in pricing and adver
customer in mind.
tising, and gives equality between
state and national banks. It permits
The afternoon program was devoted
banks to compete with S&Ls instead HOWARD Bell, exec. dir. of the IBAA, re to several excellent presentations on
of just with each other.”
film. “NETS Phase II — Where We
views the position of independent bankers
Two speakers expressed diametrical on EFT programs.
Are” was presented by George Dish-

Nebraskans Take Thorough Look at EFT

Digitized
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r t h FRASER
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197S

103

Yep, we ll be there...at
the Nebraska State
Bankers Convention,
May 4-5-6 in Omaha.
We’ve been so busy
lately that it didn’t look
like we were going to
make it, but here we
c o me ! T he w a g o n
wheels are rollin’ and
we re lookin’ forward
to meeting our fellow
bankers in the state
for some hob-nobbin’
and a real good time.
Just look for Don,
Frank and Bill. You’ll
recognize us —we’ll be
the ones in the funny
hats. Giddap!
P.S. —save us some
vittles!

Northwestern National
Bank
of Omaha

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N o rth w e s te rn B an ker/ A p ril

19 7 S

104

Nebraska

News

THE CUMULATIVE BANKING
EXPERIENCE OF OUR BOARD
OF DIRECTORS IS MEASURED
IN CENTURIES, NOT IN YEARS:
PACKERS NATIONAL BANK
B O A R D OF D I RE CT O RS

1975
KENNETH N. BARNARD, President, Farmers & Merchants Bank, M illigan.
Nebraska • E. L. BURKE, III, Executive Vice President, Genoa National Bank, Genoa,
Nebraska • D. CLARKE CASEY, President, First N ational Bank, Johnson,
N e b ra ska • M. W. D U N LA P, P re s id e n t, F a rm e rs S ta te B a n k, D o u g la s ,
Nebraska • DONALD E. DWORAK, Senior Vice President & Cashier, Packers National
Bank, Omaha, Nebraska • HENRY MAX GRAMANN, Vice President & Cashier,
Adams State Bank, Adams, Nebraska • LEONARD V. HASSENSTAB, Cashier,
Farmers State Bank, H umphrey, Nebraska • STEPHEN A. JOHNSON, Vice President,
Johnson C ounty Bank. Tecumseh, Nebraska • RUSSELL E. KENDALL, Chairman of
the Board, Packers National Bank, Omaha, Nebraska • JOHN E. KNIGHT, President.
Packers National Bank, Omaha, Nebraska • LADDIE J. KOZENY, Vice Chairman of
the Board, Packers National Bank, Omaha. Nebraska • ROBERT C. LARSON,
President, State Bank of Cairo, Cairo, Nebraska • ELBERT LOEWENSTEIN,
President, Stam ford Bank, Stam ford, Nebraska • PAUL L. MERKER, Merker Realty
Company, Omaha, Nebraska • VICTOR L. MICHEL, Vice President & Cashier, York
State Bank, York, Nebraska • CHASE NEUMANN, President, Farmers & Merchants
National Bank, Oakland, Nebraska • ALLEN NORRIS, Executive Vice President,
Adams C ounty Bank, Kenesaw, Nebraska • FRANCIS G. NOVAK, Executive Vice
President, Bank of Brainard, Brainard, Nebraska • JAMES H. OLIVER, President,
Ravenna Bank, Ravenna, Nebraska • LESTER W, [BILL] SOUBA, President, David
C ity Bank, David City, Nebraska • DALE STINE, President, N orth Loup Valley Bank,
North Loup, Nebraska • ROGER L. WEISS, Executive Vice President, Com m ercial
National Bank, A insw o rth , Nebraska • HUGH F. WILKINS, President & Trust Officer,
Geneva State Bank. Geneva, Nebraska.

23 Reasons Why We’re
Really a Bankers’ Bank

Packers National Bank
24th and “O” Streets
OMAHA, NEBRASKA 68107
402-731-4900

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m e m b e r f . d . i .c .

1975

800-642-9980

JOHN Dean (left), pres., First Federal S&L,
Lincoln, explains a point to Ted Armbruster (standing), chmn, of the conference
and pres., Nebraska State B&T, Broken
Bow, and William F. Grosser, pres., Interfinancial Systems, Inc., Hollywood, Cal.

man, director of corporate develop
ment, First Data Resources Corp,,
Omaha, and William Esping, presi
dent of First Data. This firm is the
one that has helped the NBA develop
NETS and offers computer consulta
tive service to financial institutions.
The slide presentation went completely
through NETS with a total update.
Bill Brandt, legal counsel for the
NBA, reviewed bills pending at that
time in the Nebraska legislature aimed
at revising state laws to permit banks
to operate NETS and other electronic
services. An extensive question and
answer period followed his brief
review.
The premier showing of a new
film "‘The Future in Your Hand” was
made at this NBA meeting. It is
a 27 minute color movie designed
to be shown to banker or other groups,
and is totally adaptable to TV showing
because its 27-minute length fits
TV requirements that allow for com
mercials in a half-hour show. The
film interviews several recognized
bankers and S&L personalities with
extensive experience in EFT work,
and details the flow of a customer’s
business as it is handled in various
ways by EFT facilities.
The final presentations were made
by Omaha and Lincoln bankers who
have worked for many months on the
Midwest Automated Clearing House
Association located in Kansas City
and serving Nebraska, Kansas and
western Missouri. MACHA will soon
be operational and the slide film
presented key aspects of interest to
banks being urged to join the
system. — End

Get to know
BUI Fleming.
He's a Rocky Mountain
correspondent
banker.
A correspondent banker who knows your area
like the back of his hand can offer an even
stronger helping hand. Because he knows the
degree and direction of commercial growth.
The goals and needs of the people. And the
background which could influence today’s
decisions.
Bill Fleming knows the Rocky Mountain area.
He graduated from Wyoming University.
Worked with banks in both Sheridan and
Laramie. And then brought this knowledge of
the Rocky Mountain area to us. Alm ostadecade
ago. Since then, he has had experience with
almost every correspondent service. And this
can b e o f great service to you. So, call him soon!

mmmm
I CNR 1
I
1

i£ £ j COLORADO
NATIONAL BANK
17th and Champa, Denver, Colorado 80202
Phone (303) 893-1862

See you at the Nebraska Bankers Convention, May 4-6,

at the Montana Bankers Convention, June 19-21, and the Wyoming Bankers Convention, June 11-13.
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106

Nebraska

News

LEFT — Jerry Nordbrock, chmn., NBA instalment credit comm, and pres., First State, Gothenburg; Vollis Summerlin, NBA inst
comm, member and 2nd v.p., 1st Natl., Omaha; Milan Hiben, v.p., American Natl., Chicago, and Dr.
Wayne Dobson, Abbott Pro
fessor of Banking, U. of Nebraska, Lincoln. RIGHT — Larry McCormick, sr. v.p., Keith County B&T, Ogallala; Judith Page, 2nd
v.p., The Omaha Natl., and James Hamill, a.v.p., McCook Natl.

Nebraska Instalment Loan Officers
Told about Competitive Threats
By BEN HALLER, JR.
Editor

lending personnel
I NSTALMENT
of Nebraska banks met in Omaha
recently to hear a dozen speakers dis
cuss topics ranging from competitive
threats to basic credit policies.
Jerry Nordbrock, chairman of the
committee on instalment credit for
the Nebraska Bankers Association,
sponsor of the event, said, “We have
a whole new ball game today. One year
ago we were talking about rising Fed
Fund rates and the prime rates. Today,
Fed Funds and prime rates are down,
we have unemployment and our
question is how are we going to get
our instalment loan payments from
people with no jobs.” Mr. Nordbrock
is vice president of the First State
Bank, Gothenburg.
Three bankers participated in the

panel on “Competitive Threats 19751980.” Lyle Raasch, vice president,
North Side Bank, Omaha, talked about
the threat of credit unions. He said
they are actively soliciting and getting
increased money and have been
making loans extensively at the maxi
mum 12% rate. However, credit
unions offer free credit life on all loans
and each customer gets a refund, pres
ently averaging 20% , thus effectively
reducing the loan rate to 9% .
George Barlow, vice president, First
National Lincoln, discussed the threat
of S&Ls, not only the more recent
drive for deposit dollars via TMS, but
S&Ls expansion into such loan areas
as mobile homes and “equipping”
loans.
John Burnham, vice president,

“ COMPETITIVE Threats'’ panelists— George Barlow, v.p., First National Lincoln; John R.
Burnham, v.p., U. S. Natl., Omaha, and Lyle A. Raasch, v.p., North Side Bank, Omaha.
N o for
rthw
estern B anker, A p ril
Digitized
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1975

United States National Bank, Omaha,
devoted his time to the threat of in
surance companies making auto loans
in company with the underwriting of
the auto insurance coverage. “When
you lose one of these customers,” he
stated, “you lose one of your best
prospects.”
A1 Peithman, vice president and
secretary, NBC Leasing Co., Na
tional Bank of Commerce, Lincoln,
discussed “Leasing — A New Instal
ment Tool.” He reviewed the various
options available to those who need
equipment of any kind — cash, getting
a loan, leasing, short-term rental.
“There is no way to make money by
owning equipment,” he said, “but
by using it. In leasing, you start right
out with no equipment capital.” He
said leasing can be used especially by
a young business that’s trying to grow
faster than it’s able. Also, he said,
it’s better if the cash flow permits
to borrow and buy outright.
Mr. Peithman issued a caution to
banks and their customers. “Make sure
you’re leasing and not buying. Be sure
you have a document for the IRS
that shows it’s a true lease. Otherwise
it’s a conditional sale.”
Two economic talks gave the
audience a look at the consumer from
a national and state viewpoint. Milan
Hiben, vice president, American Na
tional Bank, Chicago, reviewed the
national scene. He said “gloom and
doom” talk has had the effect of
bringing down inflation from 12% to
7% . Also, he noted, the high un
employment in Detroit shows that
the unions may have priced themselves
out of existence. He said we still
have over 80 million people employed
“and that should carry' this economy.”
Dr. L. Wayne Dobson, Abbott

N ebraska

JERRY K. Miller, a.v.p., American Natl.,
Omaha (formerly West Omaha Natl.), and
Dck Beatty, mgr., modernization credit
ins. div., Central Natl. ins. Co., Omaha.

Professor of Banking, University of
Nebraska, Lincoln, gave a view of
“The Consumer and the Economy of
Nebraska.” He sees an upswing by
the fourth quarter of 1975. Dr.
Dobson said the Fed is still making the
same mistakes it has made repeatedly
in the past 10 years. He thinks con
sumer confidence appears to have
bottomed out, and still feels inflation
is a longer term inflation threat.
“ Basic Credit Policies” were scruti
nized by Larry McCormick, senior
vice president, Keith County Bank
& Trust Co., Ogallala, and James
Hamill, assistant vice president, Mc
Cook National Bank, McCook.
Judith Page, second vice president,
The Omaha National Bank, reviewed
“Consumer Credit for Women and
the Truth in Lending Act.”
The meeting was concluded by
William B. Brandt, NBA general
counsel, who discussed current legis
lation and court decision.—End

Snider of Bellevue. Three other smaller
butterflies join with the large unit
and will rotate with movement of air
currents in the building. The bank has
adopted the distinctive emblem be
cause Papillion is the French word
for butterfly.
Interior decorating stresses the
colors of maroon, gold and white which
are Papillion school colors.
The lower level includes a Friend
ship Room which is available for
organization meetings, an employee
lounge, bookkeeping and proofroom,
storage vault and restrooms.
Construction on the new building
began in December of 1973.
The bank’s drive-in facility on West
Second Street has been remodeled
to provide walk-in windows for the
convenience of downtown customers.
General contractor for the project
was Timmons Contracting Corp.,
Omaha.

107

News

Mr. Bosselman is associated with
Bosselman Truck Plaza, Bosselman
and Eaton, Inc., B. & E. Distributing
Co. and Lemke Oil Co. Mr. Giesen
hagen is owner-operator of the Mid
Plains Construction Co.

Farmers State, Lexington,
Announces Promotions
The Farmers State Bank & Trust
Company of Lexington has announced
the promotions of James D. Bishop
to assistant vice president and Mrs.
Harold DeWall to assistant cashier.
Mr. Bishop, who joined the bank
in February of 1973, had been serving
as assistant cashier. He previously was
associated with the National Bank
of Neligh for one year. Mrs. DeWall,
who has been with the bank for 10
years, previously was supervisor of
the bookkeeping department.

Name Assistant Cashiers
At David City Bank

Directors at Grand Island
Fred A. Bosselman and Robert
W. Giesenhagen have been elected
to the board to Commercial National
Bank and Trust Company of Grand
Island.

Two employees of The First Na
tional Bank, David City, have been
promoted to assistant cashiers. They
are Mary' Lou Stallings and Virginia
Brockevelt.

Serving the Midwest...
FIRST MID AMERICA INC.
• Municipal Bonds * Fiscal Agents

Bank of Papillion Opens
In New Building
The new Bank of Papillion, four
times larger than the former building,
was opened recently with a formal
ribbon-cutting ceremony and an open
house.
The dark brown brick, glass and
steel structure cost about $570,000.
Located at 1200 Golden Gate Drive,
the new bank contains almost 12,000
square feet of space. Four drive-in
lanes are in operation along with eight
teller windows on the inside. Two
thousand safety deposit boxes are
provided with space for an additional
1,000 boxes, according to Eugene
Tschida, bank president.
A highlight of the decorating is a
butterfly mobile in the lobby, de
signed and created by Major John

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Federal Reserve Bank of St. Louis

• Corporate Bonds • Listed and Unlisted Securities
• Government
Agency Bonds

• Investment Banking

Municipal Bond Departm ent
100 Continental Building
19th & Douglas
Om aha, N ebraska 68102

Thoughtful^¿ t ä g ig
for your
money

FSfCfcf

—-¿ ¿ I
.
^ g fllv l

America

Member New York Stock Exchange, Inc.
and other Principal Stock and Commodity Exchanges
C O R P O R A TE A N D M U N IC IP A L B O N DS * G O V E R N M E N T A G E N C IE S
STO CK S • C O M M O D IT IE S * O P T IO N S * IN V E S T M E N T B A N K IN G
O m aha • Lincoln • C olum bus • Grand Island • Hastings • Atlantic
C edar Rapids • Des Moines • Fort Dodge • Sioux City • Kansas City • C hicago

N o rthw estern

Banker,

A p ril

1975

108

Nebraska

News

HOST Don Ostrand, v.p. & head of 1st Natl, of Omaha's correspondent bank div., welcomes the 1,300 guests. Two of the speakers
were Robert E. Rust (left center), extension meat specialist, Iowa State University, Ames, and Bill Chapman (right center), owner of
Chapman Commodities, Omaha. In photo at right are Curt Robertson, Bayard, la., who sold his National Grand Champion Steer
“ Mamliner” at the International Livestock Exposition in Chicago last fall for $21,500; Leonard Siedhoff, exec v p & cash Farmers
State, Bayard; Wagonmaster Merv Aagerter, and John Siedhoff.

a position of major importance in the
livestock feeder’s business.
Mr. Chapman gave an example
of the farm owner who approaches
his banker, presents his financial
statement and obtains approval for
"D EEF GRADING was scheduled beans and slaw, accompanied by a a loan, at which point the banker
some time ago as one of the key country western combo, the program will say, “What will this financial
topics at First National Bank of Oma resumed on a light note featuring statement look like six months from
ha’s 10th Annual “Chuck Wagon Roger A. Hollrah, owner of the Mid now?”
Roundup,” and it turned out to be west Auction Service at St. Charles,
This demonstrates the need for
most timely. After Robert E. Rust, Mo. Better known as The Country good forecasting, he said, but the last
extension meat specialist at Iowa State Colonel, he entertained the audience 20 months have been unmatched with
University, Ames, had prepared most with his country stories.
their extreme highs and lows in prices
of his talk, the USDA announced it will
New production and marketing paid, climbing costs of production
institute its new beef grades on April techniques were explored by Bill and interest rates for cattle and grains.
14. Mr. Rust revised his talk accord Chapman, owner of Chapman Com
“The problem now,” he said “is
ingly and the 1,300 registered for the modities, Omaha, and a co-owner of this: ‘Can the livestock feeder-grain
Roundup, a new high attendance, got Rufenacht, Bromagen & Hertz, Inc., farmer or banker shoot from the hip
a preview of the new ground rules.
a commodity clearing house in Chi like their fathers did?’ ” Hedging is
He gave a thorough review of beef cago. He discussed the futures market an answer, he stated, and shifts the
grades and what they mean to the and gave a down-to-earth presentation risk to someone else.
livestock man and his production on why he feels hedging has assumed
The majority of commodity futures
goals.
brokers have never seen a steer,
Following this, a practical demon
Mr. Chapman pointed out, so they
stration of beef grading was given
must resort to accepted measures
in the sale ring by two USDA grading
in the market, called technical analysis,
specialists. They went through the
utilizing all kinds of auditing pro
official rules governing placement and
cedures, mathematics, computer and
delivery of futures contracts, and
financial reports, as well as weather
pointed out on the demonstration
and demand cycles. “Our job,” he
cattle the features they look for as
said, “is to correlate and interpret
plus or minus factors in judging.
this information as hedging. Hedging
This demonstration was concluded
is the life and A&H insurance for
with a contest among the audience
livestock and grain men, and for their
to guess the combined weight of the
bankers. Hedging is price insurance.
last two critters shown in the ring.
Hedging is a sophisticated pre-selling
Their combined weight was 2725#
of your products.”
and about 10 guessed the weight cor
Mr. Chapman said he has employed
TWO stars of the show look like they are
rectly.
a computer analyst for the past three
trying to estimate the weight of the more
After the typical man-size Roundup than 1,000 bankers and livestock men up years, using a highly technical analysis
luncheon of barbecued beef, baked in the stands of the sale barn!
of volume, open interest and mo-

New Beef Grades and Futures Market
Featured at ‘Chuck Wagon Roundup’

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1975

Nebraska

WAGONMASTER Merv Aegerter (left), v.p.,
1st Natl, of Omaha, discusses some busi
ness before the Roundup with Irvin T.
Omtvedt, who joined the U. of Nebraska
recently as chmn., Animal Science dept.

mentum, created by a young German
scientist who has been studying futures
for about 10 years. In addition, Mr.
Chapman has two meteorologists who
can plot weather up to two years in
advance and have plotted the demand
cycles for the past 25 years on eight
different commodities.
“The thing that most people for
get,” Mr. Chapman stated, “is that
weather is the most overriding factor
in any commodity market. (These two
meteorologists) incorporate three dif
ferent cycles in making up the demand
cycles for a commodity — human
behavior, seasonal economical cycles,
and weather cycles."
He showed how rising temperatures

Meet Ed, Gene, Wilma and Jim.

109

News

in the high ranges of 90 to 100 degrees
curb the appetite, but lower tempera
tures are invigorating, thus stimulating
the appetite. Multiplying this factor by
200 million people “you can see why
our market can fluctuate on a human
behavior element alone.” If extremely
hot weather strikes, he noted, con
sumption of meat slows down, disrupt
ing the normal marketing demand and
creating temporary oversupply. There
fore, projection of weather cycles be
comes a critical issue in futures fore
casting.
Based on these analyses, Mr. Chap
man then pursued the use of this
data in practical forecasting situations
for upcoming months. — End

At your service

sm
MS
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■ ■.

Good business depends on good bankers.
That’s why the Banks and Bankers Division
at Security National Bank stays up-to-date on all
the services you might need.
But most important, we can give you the service
you need whenever you need it. That’s what
we re here for. Phone:712-277-6517

Security National Bank
6th & Pierce Street, Sioux City, Iowa

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N o rthw estern

Banker,

April

1975

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cultural representative. He formerly
was with the Union State Bank of
Winterset.
Farmers Savings Bank is a member
of Hawkeye Bancorporation.

Iowa
News

United Home, Mason City,
Announcements

J. L. CAMPBELL, JR. P resident Hum boldt

NEIL MILNER

Exec. V.P.

Des Moines

Iowa ACH Joins NACHA
The Iowa Automated Clearing
House Association has been organized
with headquarters in Des Moines and
expects to be in operation within the
near future. The IACHA also joined
the National Automated Clearing
House Association last month, be
coming the 20th member of that
. organization, which was established
last June 20. The four charter
v members were the Upper Midwest
Automated Clearing House Associa
tion (UMACHA) based in Minneapolis-St. Paul, California, Georgia and
New England.
Further details concerning the
( IACHA will be announced within the
near future as organizing banks furnish
information to all potential partici
pating banks in the state. Other auto
mated clearing houses in the midwest
_ are located in Chicago, St. Louis,
Kansas City and Denver.

include: remodeling the basement to
accommodate the accounting depart
ment and a staff meeting room, moving
the present drive-up facility, a twostory addition; consolidating all teller
functions in one area; and building
11 offices. Mr. Smith said the building
will be 20,000 square feet.

Altoona Banker Retires
Wayne Rowland, vice president
and cashier of the Altoona State
Bank, recently retired. He and his
wife, Margaret, have moved to Fonda.
He had been with the bank for five
years.

Joins Grundy Center Bank
Doug Van Dyck has joined the
Farmers Savings Bank of Grundy
Center as vice president and agri

United Home Bank & Trust Co.,
Mason City, has elected two new di
rectors. They are Carl E. Woollums,
president of Brakke and Woollums
Implement, Inc., and J. W. Mackin,
president and general manager of
Mason City Builders Supply.
Also elected were Rich Davis,
data processing officer, Larry Pieri,
assistant operations officer and Helen
Ellis, assistant operations officer. Mr.
Davis joined the bank February 1,
1975, after spending 10 years with
Central National Bank & Trust Co.,
computer center division in Des
Moines. Mr. Pieri came to the bank
from the Banco system.
The bank recently held a grand
opening for the new financial center
located at 30- 1st Street S.W. This
is the new headquarters for the instal
ment loan department. It is located
within the same block as the main
bank and attached to the drive-in fa
cilities.

„ Joins Waterloo Bank
Janet Henryson has joined the
Waterloo Savings Bank as auditor.
Miss Henryson formerly was with
the Central National Bank and Trust
Company of Des Moines as staff audi
tor-data processing. She is a 1972
v graduate in industrial administration of
Jowa State University, Ames.

Lost Nation Bank
Holds Open House
First Trust and Savings Bank, Lost
* Nation, recently held an open house
in its new facilities. The building
features the town’s first drive-in and
night; depository service. A concrete
parking lot also is provided.

" Marshalltown Bank
,To Remodel, Expand
Tom Smith, president of Fidelity
u Savings Bank of Marshalltown, re
cently announced a $900,000, twoyear remodeling and expansion project
set to begin at the bank.
Some of the improvements will

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SHOWN is the interior of the newly remodeled Security State Bank in Keokuk.

Keokuk Bank Completes Remodeling Project
Remodeling of the ground floor of
Security State Bank in Keokuk has
been completed, according to Richard
A. Bishop, bank president.
The interior includes vinyl covered
wallpaper with shades of red which
blends with wall covering of handlaid cork. One of the unique features

in the lobby, which has been doubled
in size, is a gas-fed fireplace flanked
by high back chairs and a sofa.
Building contractor for the project
was Donald Klapprott, Quality Build
ers of Keokuk with decorating done
by Bob Pohl of interiors, Inc., of
Burlington.
N o rth w e s te rn B an ker, A p ril

1975

112

Iow a

News

Albert F. Droll
Funeral services were held last
month for Albert F. Droll, president of
the Hills Bank
and Trust Com
pany. He was 71.
Known as one
of Iowa’s most in
novative bankers
and businessmen,
Mr. Droll was ac
tive in the Hills
community for 53
years, joining the
A. f . DROLL
bank in 1921. He
attended business college in Muscatine.
Under his direction, the bank grew to
$30 million in total assets.

Special tribute was paid Mr. Droll
by the Johnson County Farm Bureau
in 1972 when it named Mr. Droll as
the outstanding agri-businessman of
the year. Active in community and
University of Iowa affairs, he was an
original member of the U of I scholar
ship fund. Memorial contributions are
being directed to the U of I Founda
tion.
He is survived by his wife, two
brothers and a sister.

Director Named at
First Nat’l, Ottumwa
First National Bank of Ottumwa
has elected Jon Kneen to its board
of directors. An Ottumwan since 1963,

IF
YOUARE A BANKER
IN A COMMUNITY
OF UNDER 10,000

THE “THANK YOU”
BANK CLUB WAS
DESIGNED FOR YOU!
The “Thank You” Bank Club is a profession
ally engineered, continuous advertising package
aimed at rapidly increasing—and holding—a
large num ber of demand deposit accounts at
your bank. It will help you:
Build Community Goodwill
Bring in New Customers
Increase Traffic in Nearly All Bank
Departm ents

AND DO IT PROFITABLY!
The “Thank You” Bank Club features checking
account benefits, group travel and insurance for your
custom ers. To you, it offers a continuous, wellserviced community advertising campaign
at LOW, LOW Cost.
Get in touch with us today to learn how
your bank can better serve your community
- a n d do it profitably!

M AIL THIS COUPON TO
Bill Moler,
Box 934,
Maquoketa,

Iowa 52060.

.Title

Zip
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Mr. Kneen is a co-founder of Al-Jon,
Inc., and serves as company president.
Affiliate companies are Al-Jon Sales,
Al-Jon International Limited and
Al-Jon Marketing.

Sioux City AIB Presents
Customer Relations Seminar
“What do you say after you smile” „
is the topic of a Customer Relations
Seminar b e i n g "
sponsored by the
Sioux City chap
ter of the Ameri
can Institute of
Banking for its ’
l o c a l members,»
a c c o r d i n g to
Thomas
Van D y k e, assistant
cashier of the
T. V A N DYKE
Toy N a t i o n a l ^
Bank. The seminar will be held
Wednesday evening, April 30, at 7‘
p.m. at Epply Auditorium.
Ted Dreier of Dallas, Tex., will con
duct the meeting. He specializes in
customer relations’ seminars and is
known for his practical and entertain
ing approach.
4
Some of the topics to be covered are
Developing that Person to Person
Treatment, High Speed Public Rela
tions, Assisting the Irate Customer,
Masks We Meet in Our Work, and Im
proved Communications and Develop
ing Public Relations’ goals.
Mr. Van Dyke says this seminar is
open to all bankers and information
may be obtained from Wayne Johnson,
president of AIB, at Security National
Bank in Sioux City. Cost will be $7 per
person.

Fort Dodge Bank
Appoints 4 Directors
Peter Garatoni, president of the Un
ion Trust and Savings Bank of Fort
Dodge, has announced the appoint- -<
ment of four men to the bank’s board
of directors. They are Jerry A. Dia
mond, owner of Diamond’s, Inc.; Dr.
Arnold M. Oosterhuis, orthodontist;
Stanford W. Griffith, architect, and
Russell F. Roskens, general manager
of the Kersten Clinic.
Mr. Griffith filled the vacancy crem
ated by the retirement of R. E. Kautzky. Mr. Kautzky, vice chairman, had
served for 25 years, since the forma
tion of the bank in 1949. He will con
tinue in an advisory position as direc
tor emeritus.

113

During the last few years especially, more and
more banks have named us their correspon
dent bank.
And we couldn ’t be happier.
Because, you see, w e ’ve really prepared
ourselves to be a major correspondent bank.
Take the areas of proof of d e p o s it. Or
transit work. Or collection of checks.
Or com puter work.
Any correspondent banking problem you
have, we can handle.
So th a t’s why we say — w e ’re happy to be
named correspondent.

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114

Iow a

News

of the speakers at the Agricultural Credit Conference included Robert Pim (left), state dir'., FHA, and a panel (right) which included Richard Goes, v.p., 1st Nat’l, Council Bluffs; Arlie Pierson, v.p. & farm rep., LeMars Savings; Kenneth EJurke, v.p. & sr.
trust officer, Citizens 1st Nat’l, Storm Lake, and William Carter, pres., Nat’l Bank and Trust Co., Chariton.

Emergency, Disaster Loans Discussed at
IBA’s Agricultural Credit Conference
"O ANKING under adverse condilions, the economy and emergen
cy and disaster loans were topics of
discussion when Iowa bankers got to
gether recently for the annual Agricul
tural Credit Conference sponsored
by the agricultural committee of the
Iowa Bankers Association. The meet
ing, which had 177 registrants, was
held in the Memorial Union on the
Iowa State University campus, Ames.
Extreme weather, coupled with a
drop in cattle prices, has caused seri
ous problems for Iowa farmers which,
in turn, has caused problems for Iowa
bankers.
“How far in debt can I go?” is a
frequent question asked of bankers,
according to Dr. Michael Boehlje, as
sociate professor at Iowa State. He
discussed tools for analysis in agricul
tural credit stressing the importance of
cash flow budgets.
The final answer to the question is
“How much can you repay?”, he
commented reminding bankers that
repayment capacity comes from cash.
Cash Flow
“A cash flow analysis answers four
basic questions,” he said. “When is
cash available? How much is avail
able? When do cash deficits occur?
How much are they?” These questions
must be answered in order for the
banker to match repayment capacity
with the requirements of loans, he sug
gested.
Mr. Boehlje listed eight advantages
of cash flow budgeting. It; is a budget
based on a plan, identifies seasonal
peaks in borrowing, determines repay
ment capacity, fits the payment plan
to the business, develops net income
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and financial structure projections,
tests a plan for profit and security, is
a basis for financial control and pro
vides a communication between the
borrower and lender.
Robert Pim, state director of the
Farmers
Home
Administration
(FHA), Des Moines, encouraged
bankers to use the emergency live
stock loan program which is a result
of legislation passed in August of
1974. He outlined the provisions of
the program for the bankers and then
gave a summary of what the FHA ac
complished in Iowa in 1974.
Some of those using the emergency
FHA loan programs were the bankers
who spoke in the afternoon panel
titled “Banking Under Adverse Condi
tions,” moderated by Mel Shanda,
president and trust officer of Perry
State Bank.
Panel
Panel members included William
Carter, president, National Bank and
Trust Co., Chariton; Kenneth Burke,
vice president and senior trust officer,
Citizens First National Bank, Storm
Lake; Arlie Pierson, vice president and
farm representative, LeMars Savings
Bank, and Richard Goos, vice presi
dent, First National Bank, Council
Bluffs.
Mr. Carter said that some of the
problems in his area, where beef is the
primary enterprise, are equity loss in
cow herd (50% drop in value from last
year) lending limits, cash loss in feed
ing and backgrounding, increasing cost
of inputs and little or no loan reduc
tions.
National Bank & Trust Co. is work

ing closely with the FHA in emergency
livestock loan program, he said, and
is also “encouraging people to apply
for FHA emergency crop loans. Other
ways of coping with the problem are
to encourage farm customers to ob
tain real estate refinancing, to ask them
to borrow on life insurance policies
and to insist that they take out crop in
surance.
I hese are short term answers and
will buy time, he commented. For the
longer term, the bank is encouraging1
“more farm diversification, business
analysis, increasing research especial
ly in marketing, soil conservation and
crop rotation.”
Questions To Ask
The second panelist, Mr. Burke,
mentioned several questions the bank
er should ask himself when faced by
a farmer in need of another loan. “Is
he willing to pledge all of his assets as
collateral? Did he do well in good "
times? Is he willing to sacrifice? Have
I, as his banker, been to his farm?
Mr. Pierson said that he had founds
a limitation to cash flow analysis.
“There is a tendency to be ovef
optimistic," he commented adding that
bankers must visit farms and mort
gaged property, watch for unlisted
debt, and discuss living priorities with
the farmers.
Mr. Goos said that farmers in his.
area had lost a tremendous number of
cattle and that his bank is working
with the FHA, encouraging farmers to
take crop insurance and to tighten up
on money procedures.
Earl Henderson, chairman of the
agriculture credit conference sub
committee presided over the meeting.
He also is vice president of the Union
Trust & Savings Bank of Ford Dodge.
Jack Campbell, president, IBA and
president of the Humboldt Trust &
Savings Bank, gave the welcome.

Iowa

News

115

Ag Conference Photos

LEFT— Doug VanMeeteren, correspondent rep., 1st Nat’l, Sioux City; W. G. Groeneweg, a.v.p., Citizens State, Sheldon; Max Kiernan,
pres., Alton Savings; Lauren Kaemingk, 1st Nat'l, Sioux Center; Edwin B. Roetman, a.v.p., American State, Sioux Center. Right—
Ray A. Brown, cash., Home Trust & Savings, Osage; Rollin R. Harder, Poweshiek County Savings, Brooklyn; Richard Galloway, cash.
& farm rep., Community State, Rockwell, and Roger E. Custer, a.c., 1st Nat'l, Mason City.

LEFT— Ed Flaherty, la. Savings, Coon Rapids; Larry W. Jensen, cajSh., Iowa Savings, Coon Rapids; Bill Campidilli, ag. loan officer,
Perry State, and Ed Kenney, mgr., Jamaica office, Perry State. Right— George Milligan, v.p., lowa-Des Moines Nat’l; Mel Hackenmiller, cash., Stacyville Savings; Mark Christen, a.c., Merchants Nat’l., Cedar Rapids, and Donald Moore, drr., Security Bank & Trust,
Decorah.

4.EFT—J. Joe Wright, v.p. & farm mgr., Central State, Muscatine, and Harold E. Marsh, v.p. & farm rep.. Second Nat'l, Eldora. Cen
ter— Robert L. Emerine, sr. v.p., 1st Nat'l, Council Bluffs, and D. F. Kuiken, v.p. & cash., Atlantic State. Right Richard Bayless,
exec, v.p., Andrew Savings; Richard Eggers, Andrew Savings, and Donald H. Henningsen, v.p., Jackson State B & T Co., Maquoketa.

Other speakers included Dr. Dennis
Starleaf, professor of Iowa State;
Representative Andrew Varley, as
sistant minority leader, House of
Representatives; Bill Hess, vice presi
dent, Iowa State Savings Bank, Knox
ville; Cortland Peterson, assistant to
the superintendent, Iowa Banking BeApartment, Des Moines; Everett B.
Stoneberg, extension economist, De
partment of Economics, Iowa State;
Dr. Marvin Anderson, executive di
rector, World Food Conference; Dr.
Neil E. Harl, professor of economics,
Iowa State, and John Acres, humorist,
world traveler and lecturer.

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Federal Reserve Bank of St. Louis

Union Bank, Ottumwa,
Announces Changes
Lyle A. Hellyer and Don Otis have
been elected to the board of directors
of Union Bank and Trust Company
of Ottumwa. Mr. Hellyer is president
of Indian Hills Community College
and Mr. Otis is owner-manager of
the Brown’s Shoe Fit Co.
The bank also has announced the
promotions of Leonard A. Davidson
and Robert J. Laughrige to senior
vice presidents; Gerald G. Retzlaff to
vice president and Kay Bitner to
assistant cashier.
Mr. Laughrige has been associated

with the bank since 1951. He has
served in the instalment loan depart
ment and since 1965 has been a com
mercial and real estate loan officer.
Mr. Davidson joined the bank in 1937
and since 1948 has been head of
the instalment loan department.
Mr. Retzlaff joined the bank in 1972
and serves as the farm loan officer.
He previously was assistant vice
president. Ms. Bitner joined the bank
in 1964 in the bookkeeping depart
ment and recently has been the super
visor of the proof and transit depart
ment. She currently works in the
customer service department.
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116

Iow a

News

Joins Dubuque Bank
As Trust Officer
William G. Kruse, president of the
First National Bank of Dubuque, has
announced the appointment of Brian
R. Brannon as a trust officer.
Mr. Brannon formerly was a trust
officer at the Iowa State Bank and
Trust Company of Iowa City. He
graduated with a BA degree from
the University of Iowa, Iowa City,
in 1966, and received his JD degree
from the University of Iowa, College
of Law in June of 1973.

Construction Begins on
Oskaloosa Bank
Construction has begun on new
facilities for the Iowa Trust and
Savings Bank of Oskaloosa. The
one-story structure will contain 12,000
square feet.
The new facilities will replace
the present bank which will be sold
and the present drive-in bank, next
to the new structure, which will be
torn down. A parking lot is planned
for this area, according to Herb
Sauter, president.
The first floor of the bank will
accommodate the teller area, book
keeping space, safe deposit boxes,
the vault and offices and will feature
a paved brick area with the rest of
the floor space carpeted. The basement
will be left unfinished to allow for
additional expansion of office space.
Three drive-in windows are planned.
Roth Associates Construction Com

pany of Storm Lake is the main con
tractor for the new facility which will
provide three times the area now
available. Architects are McConnellSteveley-Anderson of Cedar Rapids.

in the upper midwest and southwest y
where he has built a large clientele
among hundreds of banks.
>

Tom Hagan & Associates
Personnel Firm 5 Years Old
The fifth anniversary of Tom Hagan
& Associates, Kansas City, Mo.,
was observed on March 9. The
firm provides clerical and executive
personnel service for banks in the
midwest and southwest. Tom Hagan,
founder and owner of the firm, said it
is licensed and bonded.
While working as a bank officer
in Kansas City, Mr. Hagan was
personally aware of the need for a
specialist in the bank personnel
field and founded the firm originally
as a sideline, placing clerical personnel.
However, within a short time, a
growing number of banks recognized
the advantage of having an ex
perienced banker assist them in
screening applicants or conducting a
search for candidates with particular
qualifications, and the Hagan firm’s
growth exceeded all original expecta
tions.
An additional service offered by
the firm is Hagan’s Helpers, a large
crew of qualified office workers who
are scheduled as needed for extra
office work or as vacation helpers.
Mr. Hagan has continued to special
ize in placement and recruitment of
bank officer personnel, concentrating

S p e c i a l i z a t i o n T a k e s The G u e s s w o r k Out
Of Building Or Remodeling P r o j e c t s . . . . . . .

More Financial Institutions In
Iowa Use The Specialized
Services Of The KIRK GROSS
COMPANY Than Any Other
Planning Service

Frey Elected Cashier
At Maquoketa Bank

First NatT, Council Bluffs,
Announces New Officers
Dale Ball, chairman, and Hal Booth,
president of the First National Bank
of Council Bluffs, have announced the
following new officers: Vern Knop,
formerly assistant cashier, elected ^
senior operations officer; Natalie An
derson, personnel officer; Janet Bohnet, Mary Carlile and Jean Christensen,
operations officers, and Robert Olson,
marketing officer.

ACORN
110 EAST 7TH ST. * WATERLOO, IOW A 50705
PHONE (319) 234-6641

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Federal Reserve Bank of St. Louis

1975

Registers

"A cc ep ted S a le R e g isters b y B ank
C lerks E v e ry w h e re "
For in io r m a tio n w iitn ■

THE ACORN PRINTING CO.
Oakland, Iowa

You can almost hear us growing

Shhhh . . .
You can almost hear us growing.
W e are the largest bank in Northeast Iowa. But
sometimes growth alone is not enough.
W e have an experienced, conservative management
team and maintain membership in the FDIC and F.R.S,
But sometimes even growth plus safety is not enough.
They don’t seem to amount to a hill of beans if you get

lousy service; or worse yet, your correspondent bank fouls
up your account just when you were counting on them.
That’s why we also offer something that no other bank
in the Tri-State area has; our people . . . they have what
you want in a correspondent bank. Not only are they
knowledgeable and helpful — they have the greenest
thumbs in the area.

CHRISTY ARMSTRONG
President

ROBERT G. SCOTT
Senior Vice President

LEO F. KANE
Executive Vice President

KEITH DRALLE
Assistant Vice President

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Federal Reserve Bank of St. Louis

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1 9 75

118

Io w a N e w s

1975 Iowa Group Meetings
Date

Group

Place

M ay 5

D es M oines

M ay 6

M arshalltown
Davenport

May 7

May 8

Dubuque

May 19

Council Bluffs

2
.

12
3

May 20

Fort D odge

M ay 21

O koboji

M ay 22

Clear Lake

Joins Staff of Iowa Bankers
Insurance and Services, Inc.
William D. Carr has joined the staff
of Iowa Bankers Insurance and Ser
vices, Inc., ac.
cording to Ed
-■> Lenaghan, exccuJf
1
tive vice president
. •' o f t h e
D es
M o i n e s - based
firm. IBIS han
dles the various
insurance
p r og r a m s of the
Iowa Bankers Asw . d. carr
sociation.
Mr. Lenaghan
also announced that Mr. Carr will
represent IBIS with banks in the west
ern part of the state. Jon Grindle, who
has been a member of the staff for
several years, will provide liaison with
banks in the eastern half of the state.
Mr. Carr is a native of Jersey City,
N. J., where he received his schooling,
graduating from the New York

Northw estern

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Federal Reserve Bank of St. Louis

1975

Institute of Finance with a B. S. degree
in Business Administration. For the
past 14 years he has been with Con
tinental Insurance Co., New York. He
was assigned to the Kansas City, Mo.,
office seven years ago and has been
bond superintendent there the past
four years. Prior to joining Continental
Insurance, Mr. Carr was with Eastman
Dillon Co. investment firm for two
years and with U. S. Gypsum Com
pany for seven years.

Joins Glidden Bank
R. H. Van Horn, president of the
First National Bank in Glidden, has
announced the addition of Don Northrup as manager of the bank’s insurance
agency. He previously was a special
agent for Iowa Mutual Insurance Co.
in Storm Lake.

Cedar Rapids Bank
Promotes Two
Two promotions at the Brenton
Bank and Trust Company of Cedar

Rapids have been announced by Don
ald C. Nebergall, bank president.
Gary L. Stohlmann has been elected
assistant vice president and Jane G.
Chadima has been elected marketing
director.
Mr. Stohlmann has been with the
bank since obtaining his Masters degree
in business administration from the
State University of Iowa in 1973.
Mrs. Chadima joined the bank as a
teller in 1973. For the past year she'
has been in charge of new accounts and
the bank calling program. She attended
the University of Iowa.

Traer Banker
Becomes CCL
William C. Talen, president, Farm
ers Savings Bank of Traer, recently
was designated a Certified Commercial
Lender (CCL) during an award cere- t
mony at the National Credit Con
ference held in New York. Require
ments for the CCL, which was initiated
this year by the American Bankers As
sociation, include a minimum of 15
years experience in commercial lend
ing.
Mr. Talen was a member of the
charter class of 200 bankers from
throughout the country.

Basic Trust School
Scheduled for July 13-18
The Iowa Trust Association, Kan
sas Trust Division, Missouri and
Nebraska Bankers Associations, in'
cooperation with The University of
Nebraska and the Nebraska Center
for Continuing Education, will hold
the Basic Trust School, July 13-18.
The school is designed to provide the
essentials of basic trust operations. „
Employees of banks who are
members of the Iowa Trust Associa
tion and trust departments of member
banks of the Missouri, Kansas and
Nebraska Banking Associations are
eligible to attend.
Participants will register at the'
Nebraska Center for Continuing Ed
ucation, second floor, after 3 p.m.,
Sunday, July 1. A dinner at 6 p.m.
will be followed by a short orientation
program.
Enrollment is limited to 60 students,^
15 from each of the four sponsoring
groups on a first-come, first-serve
basis. Formal classes will meet for
approximately seven hours each day
for a total of five sessions with
some evening programs.

119

Worthwhile
endeavors
always
take
extra effort
Extra effort is the principal ingredient we put into every correspondent
banking endeavor. Enterprise of this sort has characterized our service
since the first days more than ninety years ago when cattlemen
arriving in Chicago made The Drovers their headquarters bank. We
pioneered in crediting their newly-earned cash to banks back home and
thus built strong ties of trust and integrity with banks from the Midwest
to the Rockies.
In Drovers Country you’ll find experienced help for just about every
known correspondent banking need including loans and overlines,
clearings and transit services, bond and investment portfolios.
W on’t you call to tell us how we can exert extra effort on your behalf?

iiie D

r o v e r s

National Bank of Chicago
Illustrated above is Frederic Reming
to n 's " C u tt in g O ut A S te e r ." A
14 x 17-inch reproduction suitable
for fram ing is available w ithout cost
or obligation upon request.

47th & Ashland Ave. • Chicago, Illinois 60609 • Phone (312) 927-7000
• Member Federal Deposit Insurance Corp. • Member Federal Reserve System
• Member Chicago Clearing House Association

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Federal Reserve Bank of St. Louis

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A p ril

1975

of 1973. Approval was granted by the^J
Comptroller of the Currency in Jan-^
uary of this year.
On March 1, 1975, all offices o&
the Highland Park State Bank became
offices of Valley National Bank. ^

Des Moines News
D ANKERS Trust has announced the
election of the following seven of
ficers: Leo E.
Herrick, assistant
vice president and
trust officer; Dan
J. Botnar, Russell
Curtis and Ray
Davis,
assistant
trust
officers;
Ronald J. Dietrick, trust systems
officer; George F.
L. E. HERRICK
Tomlinson, pro-

D. J. BOMAR

R. DAVIS

G. F. TOMLINSON
N orthw estern

r . c u r t is

R. J. DIETRICK

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Federal Reserve Bank of St. Louis

d . w eller

19 7 5

gramming manager and William D.
Weller, systems analyst.
Mr. Herrick joined the bank in 1961
and has worked in the trust department
since 1965. Mr. Bomar joined the bank
in 1969. Mr. Curtis, who was pre
viously associated with the law firm of
Claypool and Claypool in Williams
burg, came to the bank in 1974. Mr.
Davis joined the bank in 1974 from
Lamson Brothers of Des Moines.
Mr. Deitrick has been with the bank
since 1974, Mr. Tomlinson since 1964
and Mr. Weller since 1966.
Forest T. Lewis has been elected
president and trust officer of Plaza
State Bank, ac
cording to Paul
T. M a n n i n g ,
chairman.
Mr. Lewis, who
joined the bank
in 1965, formerly
served as execu
tive vice presid e n t. He pre
viously was as
F. r. LEWIS
sociated with Iowa
State Bank in Des Moines and State
Bank in Terril. He is past president of
both the Merle Hay Merchants As
sociation and the American Institute of
Banking.
* * *
Charles O. Russell, president of
Highland Park State Bank, recently
was elected a director of Valley Na
tional Bank. In other action, all
officers of Highland Park State Ban,k
were elected officers of Valley National
Bank.
These actions were occasioned by
the merger of the two banks. The
agreement to merge was first announced by the two banks in August

Bankers Trust has announced the
transfer of Donald F. Carmody, assis
tant vice president,
to the correspon
dent bank depart
ment f r o m the
commercial loan
department. Mr.
Carmody has been
with the b a n k
since 1969 and
has worked in the
commercial lend
D. F. CARMODY
ing area s i n c e
1972, most recently as commercial
lending officer. Previously, he wa*&
credit analyst.
Governor Robert Ray recently ap
pointed Mary Holstad, 55, to the Iowa
Commerce Com
mission for a sixyear term. Mrs.
Holstad is an in
vestment officer
for Central Na
tional Bank and
Trust Co. and is
the first woman
ever appointed to
the three member
M . F. HOLSTAD
commission which
regulates the states utility rates.
Her appointment is subject to con
firmation by the Iowa Senate.
Mrs. Holstad is a graduate of East,
High School, attended Drake Univer
sity, and is a graduate of the Universify
of Wisconsin’s School of Banking in
Madison.

Eagle Grove State Bank
Names Vice President
David A. Rouse, president of the
Eagle Grove State Bank, has an- |
nounced the addition of Allan Frevert
to the bank’s staff as vice president and
senior agricultural representative. He*
replaces Neal Conover who resigned.
Mr. Frevert formerly was with the
Webster City Production Credit As
sociation for the past 12 years most
recently as senior agricultural loan of
ficer and president-treasurer for the
association.

Availability increases
your earnings.
We feel our availability
schedule is the best
in the continental U S .
For more details, call our Correspondent Bank Department toll free 800-362-1615.

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Central
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CUST

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

National Bank & Trust Company

DES MOINES (515)243-8181 MEMBER FDIC
AT S IX T H /F IF T H & GR A ND / 35TH 8, IN G E R S O LL / W EST DES M O IN E S
s £ A F F IL IA T E D w it h CENTRAL NATIONAL BANCSHARES. INC.

122

Bankers Market Place
Bank Equipment has
M EILINK
introduced a new Pass Through
designed for security,
and appearance.

convenience

The brushed stainless steel front
compliments virtually any interior de
sign concept. Rugged double doors are
engineered for security; both doors
cannot be open at the same time. Di
mensions of the inner chamber allow
abundant room for money bags and
other bulk transactions.
Meilink Bank Equipment, with
headquarters in Toledo, Ohio, manu
facturers Sentinel visual drive-up sys
tems, TV drive-up systems, and an ex
panding line of other related banking
equipment.
International Monetary Mar
T HE
ket of the Chicago Mercantile Ex
change has just released a revised edi
tion of its “Understanding Futures in
Foreign Exchange” brochure.
The 48-page booklet updates and
adds to an edition first published in
July, 1972. It is offered without charge
to the public.
As a basic primer on a complex sub
ject, the booklet’s five chapters cover
such material as The System of Inter
national Payments, Reading and Un
derstanding Foreign Exchange Quota
tions, Speculating in Foreign Curren
cies, Hedging in the Futures Market,
and Fundamental Factors in Foreign
Exchange.
Industries has got the
R OYALTY
spirit . . . . the Spirit of ’76, that
is.
A pair of the company’s best sell
ing coin banks has donned colonial
Northw estern

Banker, A p ril

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Federal Reserve Bank of St. Louis

J9 7 5

garb to become George and Martha.
This popular pair has had tremendous
appeal to families with young children
and is expected to score high again as
George and Martha in bicentennial
bank promotions.
Royalty coin banks are manufac
tured exclusively for financial institu
tions and are not sold elsewhere. They
are non-toxic, unbreakable and made
by Royalty Industries in Hialeah, Fla.
EFEBURE has announced the
development of a unique new
telephone line monitoring system, the
LM 3800, to help improve the security
of financial institutions. This line
monitoring system protects the most
vulnerable segment of a security sys
tem.
LeFebure’s LM 3800 system sends
a succession of unrelated random
audio frequency signals from a central
station unit to a premise unit that are
virtually impossible to duplicate. Sig
nals are transmitted over the telephone
line. If the premise unit receives the
signal in a p re-determined period of
time, it returns an entirely different fre
quency signal to the central unit.
There’s a constant “check and re
check” between the two locations.

If a signal is not received in the time
frame assigned (or they are out of
phase) a signal lamp and audio alert
are activated at the central unit, indi
cating possible line tampering or trou
ble in the system. A true alarm at the
premise activates a constant electric
signal at the central station and ener
gizes an alarm lamp and audio alert.
An alarm condition over-rides all cir
cuits.
An exclusive feature of the LeFebure LM 3800 system is the testing
capacity. A security officer can test the
system at any time. This activates all
transmitters and receivers in the sys
tem. A meter reading verifies that the
total system is operating properly.
LeFebure’s LM 3800 system may
be connected to an existing or new
alarm system. An individual control
is used for each installation at the cen
tral station, instead of a common com
plex for all alarm systems to increase
reliability and security.
Each installation of an LM 3800

system is unique because pulses and ^
audio frequency are determined by a
matched set of circuits that are not du
plicated in any other installation. This>
assures greater security.
/
fT , HE Mosler century1'1 Alarm Systern is featured in a new full-color
brochure recently published by Mosler.

Integral major components for the
basic UL-certified century system in
clude a central control panel, program
clock, outside bell, audio protection,
police reporting, vault door con
tact, thermostat and vault ventilator
contact. The connected bank burglar4
alarm system with outside bell and HiLine Security. The Grade A configura
tion is a local bank burglar alarm sys
tem with outside bell —• lower line
security can be added for remote police
reporting. The century system is engi-.
neered to interface with camera sur
veillance systems and supplementary'
detection systems.
of the toughest and most ex
O NEpensive
problems in money
rooms today has been eliminated by
the introduction of Brandt’s ne\w
Model 854 Currency Counter.
At speeds as high as 1,500 bills per
minute, the Model 854 can count and
batch unfit currency.
The unit can process unbelievably
poor, rag-like currency.

»
“ R ig h t no w , m o s t o f o u r b ra n c h e s a re in
s h o p p in g c e n te r fa c ilitie s w h e re th e r e is a
m a jo r s u p e rm a rk e t. T e lle r - M a tic e n a b le s us
to g o s tra ig h t to th e c u s to m e r.”

“ Y o u can no lo n g e r say th a t C e n tra l T ru s t is lik e a n y o th e r b a n k .
T o d a y , o u r C e n tra l C ard p ro g ra m u s in g th e T e lle r - M a tic is g o o d
e n o u g h , s tro n g e n o u g h and m a rk e ta b le e n o u g h to m o tiv a te p e o p le
to a c tu a lly c h a n g e b a n k s !”

“ T e lle r - M a tic is m o re th a n ju s t an e x o tic
b a n k in g m a c h in e . W ith us, it s th e fo u n d a tio n o f o u r b ro a d re ta il m a rk e tin g p a c k a g e ,

"We’re doing some innovative things
with Teller-Matic...
like putting them inside Kroger supermarkets!’
Robert Klingler, Vice President, Retail
Banking, at Central Trust Company,
Cincinnati, Ohio, discusses his choice of
the Mosler Teller-Matic® automatic teller.
Central Trust Company, with 32 branch
offices located throughout Hamilton Coun
ty, ranks as one of Cincinnati's largest and
most progressive banking operations.
Central Trust was the first Cincinnati
bank to offer customers around-the-clock
automatic teller services through Mosler
Teller-Matic, and more recently, launched
its Central Card - a retail card program that
is unique in the industry.
The Kroger installations—and why.
“ Currently, we have 12 Teller-Matic instal
lations, all of these
th rough - the - wall,
walk-up installations
at branch sites. But
I w ould anticipate
that all future instal
lations will be in
locations that are
hardly traditional in
banking. By that I
mean we have plans
forand commitments
to numerous TellerMatic installations in new kinds of hightraffic areas, such as Kroger supermarkets.
“The Kroger installations will have a
special appeal to us. The banks and super
markets are both once-a-week markets,
and we feel the tie-in is a natural one. The
supermarket attraction is enormous. Most
of our branches are in shopping centers
near major supermarkets. Now we’re
taking the next logical step and establishing
installations inside the supermarkets. It's
all based on our philosophy of making the
bank available to the customer when and
where the customer chooses to take ad
vantage of his money.
“ We can do this with Teller-Matic. And
that’s the future of retail banking, not the
$300,000 full-service branches.
Labor costs and the Teller-Matic. One
of our recurring problems is that we have
a tremendous amount of expense tied up in
salaries, and we simply felt that we had to

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

try to reduce the labor content of our ser
vices. Does this mean going to a less per
sonal type of banking? Not really. The
Teller-Matic is ideal for routine transac
tions where there is a premium on speed,
convenience and efficiency. But in situa
tions where personal involvement is im
portant, we fully believe in using people.
Our automatic tellers handle a large portion
of the routine transactions, making it possi
ble for our people to devote more time to
customers requiring personal banking.
It allows us to provide convenient, efficient
banking services with a smaller labor
content.
How the Teller-Matic choice was made.
“At the point when we were investigating
automatic tellers ... another manufacturer
actually had the lion’s share of the market.
But we decided to go with Mosler TellerMatic. We did so with the belief that Mosler
could not afford to enter this market without
being successful right from the outset.
They have a commitment to the banking
industry, and they had to have made a
financial and personnel commitment to
keep their product competitive. They deliv
ered everything they promised.
Day-to-day operations and reliability
experience. “The big difference, we feel,
is inside. Without any question, the Mosler
equipment is the best we have seen from
an internal operation standpoint: balancing,
handling the total internal operation, and
interfacing with our
computer operations
system.
“The other big fac
tor is the amount of
downtime. The im
portance of keeping
an automatic teller
operating ca n ’t be
over - emphasized.
You d o n ’t have to
turn a customer off more than once with
this type of equipment to lose him forever
as a potential user. We keep track of each
installation on a monthly basis, and I can
tell you that we’ve had far fewer problems
in keeping our equipment operating than

users of competitive equipment. I can say
that because Central
Trust does a great
deal of processing
for other credit card
operations, so we are
well aware of the
problems with com
peting equipment —
and downtime is high
on the list.
Marketing advan
tages and cost jus
tification. “We didn’t
try to approach automatic teller systems
on a cost justification basis. Our usage on
the equipment is very satisfactory to us,
and hasgrown steadily from the beginning.
“The interesting aspect of the usage
we've measured is that the Teller-Matic
has consistently generated more dollars
in deposits than in withdrawals. This is
evidence that customers are using it for
many types of transactions, not just as a
source for emergency cash. To a large
portion of our customers, the Teller-Matic
is 'the bank.’
Report on Mosler Teller-Matic service.
“The most positive thing I can say about
Mosler is that they’ve delivered a system
that works and they’ve backed it up. This
goes back to the downtime factor. If the
equipment had bugs in it . . . if Mosler
d id n ’t back it up with real service, the
program would have been a disaster.
“ But it wasn’t. We consider it an enor
mous success. We have the Teller-Matic
and we are definitely pleased. What more
can I say?”
For more information on the extraor
dinary Mosler Teller-Matic, write Mosler,
1561 Grand Boulevard, Hamilton,
Ohio 45012.

Mosler
An A m erican-S tandard Company

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OUR
Yes. pick on the leader and let us help you
with any banking problem. George Milligan.
Bob Buenneke. Dwayne Smith. Bernie
Kersey, John Zdychnec. Dorothea Wolfe
and Voldy Vanags are the experts who will
take care of your every banking need

Iowa-Des Moines National Bank
An Affiliate of Northwest Bancorporation

7th & Walnut

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Federal Reserve Bank of St. Louis

245-3131

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