Full text of The Northwestern Banker : August 1972, 79th Year, No. 1307

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NORXHWESTERN
AUGUST

1972

Break Ground for New Financial C en ter
—

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

P ag e 8 0

o make

Putting it
all together
goootkingshappen
in
Io7

Statement o f Condition JUNE 30
ASSETS:
Cash and Due from B a n k s --------------------U S. T reasury S e c u ritie s -----------------------O bligations of o th e r U S. G overnm ent
Agencies and C o rp o ra tio n s ---------------O bligations of States and Political
S u b d iv is io n s _________________________
O ther S e c u ritie s -----------------------------------Federal Funds S o ld ____________________
L o a n s ---------------------------------------------------Bank Prem ises and E q u ip m e n t------------O ther Real E s ta te ---------------------------------Accrued In te re st R e ce iva b le ----------------Prepaid Expenses and O th e r Assets —

Board o f Directors

1972 (U n au dited )

$ 66,566,363
29,074,472

Duane A rnold
C h a ir m a n o f t h e B o a rd & P re s id e n t,
Io w a E le c tr ic L ig h t & P o w e r C o m p a n y

J. C. B lackford

12,603,889
62,442,671
1,852,764
16,300,000
194,679,202
9,628,275
1,176,031
2,911,179
1,676,742
$398,911,588

Total R e so u rce s _______________________

D ir e c to r ,
U n io n B a n k & T r u s t C o m p a n y

James E. C o q u ille tte
P r e s id e n t.
T h e M e r c h a n ts N a tio n a l B a n k

Edw ard B u rch e tte
C h a ir m a n o f t h e B o a rd .
V a lle y B a n k & T r u s t C o m p a n y

George C. F oerstn er
P r e s id e n t.
A m a n a R e fr ig e r a tio n . In c

John T. H a m ilton , II

LIABILITIES:
Demand D e p o s its ______________________
Time D e p o s its _________________________
Federal Funds P u rc h a s e d --------------------O ther B orrow ed M o n e y ------------------------Unearned In c o m e ______________________
O th er L ia b ilitie s -----------------------------------M in o rity In te re st in Consolidated
S u b s id ia ry __________________________

$176,442,463
155,241,793
17,400,000
-0 -

4,437,146
4,006,622
733
$357,528,757

Total L ia b ilitie s ---------------------------------RESERVES ON LOANS:
Reserve fo r Losses on L o a n s ---------------CAPITAL ACCOUNTS:
Capital Stock. Common. No Par Value
Stated Value $2 50 per share:
A uth orize d 6.0 00.00 0 shares:
Issued 1.492.500 shares
S u rp lu s -----------------------------------------------U ndivided P r o fits ---------------------------------

3,460,954

3,731,250

C h a ir m a n o f th e B o a rd .
T h e M e r c h a n ts N a tio n a l B a n k

E. H ow ard Hill
C h a ir m a n o f t h e B o a rd .
ID P a c k in g C o m p a n y

O scar E. Johnson
S e n io r P a r tn e r .
J o h n s o n . S t u a r t. T in le y . P e te r s & T h o rn

F. Forbes O lberg
P r e s id e n t.
B a n k s o f Io w a . In c

B. T. P e rrine
S e n io r P a r tn e r .
S im m o n s . P e rr in e . A lb r ig h t & E llw o o d

Neal A. Sands
V ic e C h a ir m a n o f th e B o a rd .
V a lle y B a n k & T r u s t C o m p a n y

Ed H. S petm an, Jr.

Total C a p ita !-------------------------------------

15,462,875
18,727,752
$ 37,921,877

Total Lia b ilitie s. Reserves and Capital

$398,911,588

P re s id e n t.
C o u n c il B lu ffs S a v in g s B a n k

Max von S chra de r
C h a ir m a n o f th e B o a rd .
U n io n B a n k & T r u s t C o m p a n y

THE MERCHANTS NATIONAL BANK / UNION BANK & TRUST C O M PAN Y/VALLEY BANK & TRUST COMPANY / COUNCIL BLUFFS SAVINGS BANK
C e d a r R a p id s

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

O ttu m w a

D e s M o in e s

C o u n c il B lu ffs

“ IN 1971, NORTH CENTRAL LIFE
PAID OUT OVER $4 0 ,0 0 0 TO OUR INSTALLMENT
LO A N CUSTOMERS IN LIFE INSURANCE
A N D DISABILITY BENEFITS.”

D O N A L D L. L A U T E N S C H L A G E R , V ic e President
A p p le to n State B ank, A p p le to n , W isconsin

■ " A n d because it makes go o d sense. To both
the customerand the bank. FACT: N o rth C entral
Life Insurance Com pany has made it easy to
sell this kind of com plete protection. C re d it
Life Insurance on both the b o rro w e r and his
w ife . (If she dies, the loan is p a id in fu ll.) A n d
D isability Insurance on the b o rro w e r. If h e ’s
sick or injured and ca n ’t w o rk, his payments
a re made for him until he can return to w o rk.
FACT: W e sell the ‘C re dit
L ife /D is a b ility Pack
a g e ’ to more than
80% of our in sta ll
ment loan custom
ers. A n d a la rge
share of our cus

tomers buy ‘Jo in t L ife ’ for th e ir w ives, too.
W e recommend it. FACT: W e recommend com
p le te coverage on every kind of installment
ioan. Cars, boats, snowm obiles, c o lo r T V ’s,
furniture, d e b t co nsolidation, vacations . . .
loans for any w o rth w h ile purpose. FACT:
Even if the loan is for more than $ 10,000,
N orth C entral Life has a ‘ H o t L in e ’ to help you
sell a ‘ Package’ to your la rg e r b orrow ers. W e
use it. FACTbjThe 'C re d it L ife /D is a b ility Pack
a g e ’ improves our y ie ld . Substantially. W e
b e lie ve in the program. FACT: If you w o u ld
like to kn o w more a b o ut ‘the Package’ from
a b a n ker’s po in t of v ie w , call or w rite the
N o rth C entral Life Insurance Company, or call
me pe rso n a llya t 4 1 4 /7 3 9 -3 6 0 1 , Extension 4 9 ."

The Leader in insurance through lending institutions.

NDRIH CENrRIL LIFE INSURANCE C Q M M N Y
275 East Fourth Street, St. Paul, M innesota 55101 ■ 6 1 2 /2 2 7 -8 0 0 1

NCL-8723

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Federal Reserve Bank of St. Louis

A l l insurance co v e ra g e subject to the terms o f the specific p olicies involved.

N orthw estern

Banker,

August,

1972

we w orry cibout you.
We worry because floorplanning mobile homes can be a tough, tricky
business. Tough, trying to keep all the loose ends tied
together, and tricky, because it involves doing some things you usually
don’t have to worry about with your other loan programs.
But it’s well worth the risks and
the worry. Especially if someone
else is doing all the worrying and
taking most of the risks.
Someone like us.
If you’re buying mobile home
paper; wholesale or retail, we can
reduce your risks to almost nothing.
Our Lenders’ Indemnity Program
includes credit insurance, credit
life, vendors’ single interest,
non-filing coverage insurance and
wholesale fraud protection.
We can’t guarantee to take all

484848532353534853235323482353 the risks out of mobile home

lending. No one can. But with
the proper planning and
protection, mobile home loans will
rank with the safest and surest
paper in your portfolio. To see how
to do it, send for our booklet:
Lenders’ Guide to Mobile Home
Insurance. Just write us, use the
coupon below, or call toll-free at
800-243-6000 (in Connecticut,
dial 800-942-0655) to get your
free copy.

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

5
*

C o m p letes 6 0 Y ears w ith
T h e N o rth w estern B a n k er

With this August, 1972, issue, Clif
ford De Puy completes his 60th year
of association with the N orthwestern
B anker . N ow in
its 77th year, it
is the “Oldest fi
n a n c ia l jo u rn a l
serving the cen
* tral and western
states.”
Mr. De Puy becam
e p u b lis h e r
>
in August, 1912,
at 25 years of
C. DE P U Y
age when his fa
ther, Emerson De Puy, died. The
senior Mr. De Puy had purchased the
N orthwestern B anker in 1900 and
served as publisher until his death in
1912.
Clifford De Puy continued as owner
and publisher until selling the N orth
w estern B anker , the Iowa-Nebraska
Bank Directory and the Underwriters
^ Review in February, 1958, to long
time employees Malcolm Freeland
and Ben Haller, Jr., who are now pub
lisher and editor respectively.
For many years Clifford De Puy
wrote the editorials each month which
appeared under the heading “Across
the Desk from the Publisher.”
He is past president of the Adver
tising Club of Des Moines, the Rotary
Club and the Greater Des Moines
Chamber of Commerce and is a former
member of the Des Moines Public
Library board of trustees.
At the present time Mr. De Puy
**■ comes to his office every day when he
is in Des Moines. In recent years he
and Mrs. De Puy have spent consider
able time traveling to various coun
tries around the world.

A B A F avors
B en efit S tan d ard s
Standards should be established for
all persons who handle or control em
ployee benefit funds, an American
Bankers Association witness told the
Senate Labor Subcommittee recently.
John M. Cookenbach, president of
the ABA’s Trust Division, said that the
association “supports the establishment
of fiduciary standards which apply not
only to all trustees of employee bene
fit funds but also to anyone who han, dies or controls employee benefit
funds.”

O ld est F in a n c ia l J o u r n a l S erv in g
T h e C entral and W estern States

for your AUGUST, 1972, reading

79th Y e a r

No.

1307

FEATURE ARTICLES

8
16
21
22
25
26
27
36
39

Expect 10,000 at ABA Convention in Dallas October 7-11
Corporate News
Nebraska Supreme Court Upholds Verdict for
Bank of Valentine Cashier
How to Improve Profit Planning in the Small Bank—Howard G. Johnson
DISC — Domestic International Sales Corporation—
Lewis E. Davids
How to Cut a Kite String— George W . Dennis
Life Insurance Executives Defend Private Pension System—
A N o r t h w e s t e r n B a n k e r Survey
Bank Promotions and Changes
Mercantile Trust Hosts Bankers at Baseball Party
STATE B A N KIN G NEW S

Illinois
Minnesota
Twin City
South Dakota
North Dakota
Montana
Colorado
Nevada
Wyoming

News
News
News
News
News
News
News
News
News

41
48
50
54
55
56
56
56
58

Washington News
Oregon News
Utah News
Idaho News
Nebraska News
Omaha News
Iowa News
Iowa Independent Convention
Des Moines News

58
58
60
60
63
64
71
72
80

OTHER FEATURES

60
86
86

Convention Calendar
In the Directors’ Room
Index of Advertisers

N O RTH W ESTERN

BAN KER

3 0 6 15th Street, Des M oines, Io wo 5 0 3 0 9 , Phone 5 1 5 — 2 4 4 -8 1 6 3

Chairman
Clifford De Puy

Publisher

Editor

M alcolm K . Freeland

Ben H a lle r, Jr.

Associate Editor
Linda L. Larson

Advertising Assistant
M ildred Savich

Field Representative
AI Kerbel

Circulation Department
Lena Sutphin

Field Representative
Paul M asters

Auditor
Bertha Soderquist

Field Representative
G len Hicks

No. 1307. Northwestern Banker is published monthly by the Northwestern Banker Company, 306 Fifteenth Street, Des Moines, Iowa 50309. Subscrip
tion 5 0 ¿ per copy, $6 per year. Second class postage paid at Des Moines and at additional mailing office. Address all mail (subscriptions, change of
address, Form 3579, manuscripts, mail items) to above address.

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

N orthw estern

B anker, August,

1972

A M innesota b a n k needed help in
a rra n g in g $1 2 5 ,0 0 0 line fo r a local
construction com pany. W e w ill
lend $ 7 5 ,0 0 0 .

W e a re helping a $ 5 0 m illion Illinois
b a n k by p articip atin g in a $ 5 0 0 ,0 0 0
ine fo r an a re a h a rd w a re co m p an y.
W e w ill lend $ 3 0 0 ,0 0 0 .

A T e xa s bank needed help in
a rra n g in g up to an e x tra $1 m illion
fo r a lo cal utility company,- so
The First m ade another loan.

A co m p a n y in H a w a ii is in need o f
$3 m illio n term loan. W e w ill
lend $ 2 ,3 0 0 ,0 0 0 .

THE FIRST LENDER
N evin Bowser and A n d y N ie lo head t j
team th a t serves the Northwest.

o r t hFRASER
w este rn B a n k e r, August,
DigitizedN for
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1972

To assist o u r co rre sp o n de n t's
liq u id ity , w e a re p a rtic ip a tin g w ith a
M ich ig a n b a n k in a $ 4 3 0 ,0 0 0 loan fo r
a lo ca l sh o p ping center. W e a re
le nding $ 3 0 8 ,0 0 0 .

WE'RE HELPING
ALL ACROSS THE U.S.A.
Nevin Bowser and Andy Nielo and
their team have helped banks in
the Northwest meet their customers'
commercial loan needs, just as
their associates at The First have
helped banks all over the country.
They're ready to help you
with all types of loans and
overlines —term, interim construction,
holding company operations, working
capital. O r your First correspondent banker
may suggest participating in some of your
existing loans to ease the liquidity
of your bank.
When you need loan assistance,
commercial or agricultural, your
correspondent banker at The First can
get right to work finding the plan best
g-,: ■ suited to you.
| ji ; So talk to a banker whose only customer
y / is his correspondent —you.
|f|
Phone (31 2) 732-4110.

{/$

The' _
First National Bank
of Chicago
Member FDIC
One First National Plaza
Chicago, Illinois 60670

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Federal Reserve Bank of St. Louis

N orthw estern

Banker,

August,

1972

E xpect 10,000 a t ABA
C onvention in D a lla s O ctober 7-11

DVANCE registration for the 98th
annual American Bankers Con
vention passed the 9,000 level last
month. The convention is scheduled
for Dallas, October 7-11.
ABA officials expect more than 10,000 registrants at the convention in the
new $33 million Dallas Convention
Center.
The Convention Center will be the
hub of all activities. Its East Hall will
house the ABA’s registration center,
message center, women’s activity cen
ter, and a special educational theatre.
The center’s West Hall houses four
“nationality” restaurants — French
New Oreleans, Western Barbeque
Ranch, Italian Villa, and German
Bierstube — as well as the exhibit
hall, large central lounge, and ex
hibitor’s service center. In addition, the
city has many more restaurants with
international flavor.
The center’s 70 meeting rooms,
which are capable of seating from 25
to 25,000 people, insure adequate
space for the convention’s general ses
sion and the smaller working sessions.
Social events scheduled for bank-

ers and their wives include three dif
ferent Broadway musicals, a pro foot
ball game, a fellowship breakfast, and
two receptions.
There will be an early dinner per
formance and a late cocktail per
formance of each musical Saturday
through Tuesday. Two of the shows
will be performed in hotel theaters that
offer a combined seating capacity of
1,250. The third show will be per
formed in the 1,700 seat Convention
Center Arena. Attendance at two of
the shows is covered by the registra
tion fee.
Following
Sunday’s
fellowship
breakfast, conventioneers will have an
opportunity to watch the world
champion Dallas Cowboys play the
Pittsburgh Steelers at the Cotton Bowl
Stadium. A large block of reserved
tickets will be made available to regis
trants during July. Transportation to
and from hotels, the convention center,
and the stadium has been arranged.
Special programs are planned for
the ladies. Crafts centers and beauty
boutiques will be among the activities
designed for them.

MÍNIMUM

Risk
B A N k iN q
Suite 200, 221 Scott Street
Wausau, Wisconsin 54401

" . . . o ffe rs p ra c tic a l, n o t p h ilo s o p h ic a l o r th e o re tic a l in fo rm a
tio n . . . "

MIDWESTERN BANKER MAGAZINE
FRONT COVER STORY
DECEMBER, 1971 ISSUE
"C o m p re h e n s iv e and p ro v id e s th e k in d o f in fo rm a tio n w e w o u ld
lik e to have in th e im p ro b a b le e v e n t w e w e re s u d d e n ly p r o
c la im e d s e c u rity o ffic e r in a b a n k ."

R. W. POQUETTE, EDITOR
BANK NEWS MAGAZINE
JANUARY, 1972 ISSUE
N orthw estern

Banker,

August,

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

1972

Some 6,300 of the city’s 27,000
first-class hotel rooms have been set
aside for the ABA in five hotel com
plexes near the convention center.
Each hotel will house various conven
tion activities.
Six centrally-located information
centers will provide the latest data on
“what’s going on where, and when.”
To insure easy access to the conven
tion’s myriad activities, more than 600
taxis will be available to ABA conven
tioneers on a 24-hour basis. Special
air-conditioned shuttle buses have al
so been arranged for transport to and
from hotels, the convention center and
other centers of activity.
Dallas is readily accessible from all
parts of the nation. The city’s Love
Field Airport handles 800 flights daily
and is served by eight major airlines
and five commuter airlines.
In addition to convention activities,
ABA members can also visit such local
attractions as Six Flags Over Texas,
one of the most spectacular family
amusement areas in the nation; World
of Animals, the nation’s reserve of
African wild animals; and Seven Seas
amusement park, the largest inland
marine park in the nation.

P R A C T IC A L S E C U R IT Y C O U R S E S IN :
•

kidnap-extortion

•

personnel training

•

cash control
internal controls

•

bomb threats

•

facial identification

•

security equipment

•

fair credit reporting
act

police & FBI
investigation

•

panel discussions

R e g istra tio n Lim ited
Iowa Bankers Association Sponsored School:
September 26 & 27, 1972
Johnny & Kay’s Hyatt House
Des Moines, Iowa
Illinois Bankers Association Sponsored Schools:
October 18 & 19, 1972
Ramada Inn
Champaign, Illinois
October 25 & 26, 1972
Regency Hyatt House
Chicago, Illinois

Here are IOOO
good reasons for
your bank to have
a'duetoPaccount
w ith ours.
O ver 40% o f all checks processed in
California flow through Bank o f America’s 1000
branches. This means we can handle your
“due to” account faster and m ore efficiently.
Availability is cut to a m inim um . For details
about this and m any other correspondent
services, w rite directly to Chuck Simek,
Assistant Vice President, Bank o f America
Center, San Francisco, California
(415) 622-3456.

B A N K o f AMERICA
Correspondent Bank Service

•BA N K OF AMERICA N .T .& S .A . MEMBER F .D .f. C *

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Federal Reserve Bank of St. Louis

N orthwestern

Banker,

August,

1972

Views Long-R ange B an kin g Trends
ISCUSSING the future of com
D
mercial banking in the United
States, Edward L. Palmer, chairman of
the executive com
mittee, First Na
tional City Bank,
s a i d technolog
ical changes will
give the American
banking scene an
entirely new look
by the year 2,000.
The U.S. banking industry, for
f L pAlMER
example, will very
likely operate on a nation-wide rather
than on a state-wide basis as it does
now, he said, and U.S. banks will be
even more deeply involved in multina
tional syndicate financing and in fi
nancial services.
“The diversity of banking activities
will blur the sharp demarcation be
tween all financial institutions . . . and
the banker of the future will manage
a broad-ranging cluster of financial
services for all manner of companies
and individuals.
“There will, as a result, be more
competition between banks and other

financial institutions such as insurance
companies and credit unions as all
competitive services are crossed over,”
he added.
And while the duplication of present
overlapping
regulatory
authorities
dwindles, the banker told symposium
participants, technological advances
will revolutionize the entire payments
mechanism, leading to a paperless
payment system or the checkless so
ciety.
“American bank managers in the
year 2,000 will be business generalists,
managing not one business but many
. . . while the stock of commercial
banks and bank holding companies
will have investment qualities far dif
ferent from those they possess today
and with a far greater spread in priceearnings ratios, he predicted.

C hicago M ercan tile V o lu m e
R each es R eco rd L evel
Trading volume on the Chicago
Mercantile Exchange in June estab
lished an all-time record for any month
in the 53-year history of the exchange,
Everette B. Harris, president, an
nounced.

The C.M.E. also set a new record
for any first half in its history.
June volume totaled 413,907 trades, r
up 44.0 percent from the 287,475 of
1971 and 5.3 percent above the pre
vious one-month record of 393,230 «
contracts traded in January, 1972.
Six-month volume was 2,228,278,
or 37.5 percent above the 1971 period-«
when there were 1,620,502 trades and
16.5 percent above the previous sixmonth mark of 1,921,663 established ,
in 1970.
Neither the June or six-month total
includes trading on the exchange’s new
International Monetary Market.

P lan M erchant B an k
First National City Corporation,
parent of First National City Bank in
New York, plans to establish an inter
national merchant bank in London. *
The new bank would engage in all
international banking and financial ac
tivities normally provided by London
merchants banks.
Managing director of the new bank,
which will be known as Citicorp International Bank Limited, will be George
E. Putnam, presently senior vice presi
dent in charge of Citibank operations
in Europe.

Mr. Banker: During 1971 over 100 midwest bankers have chosen our Credit
Insurance Program for their use. Here are some of the reasons why—
-------- W e offer the fa stest and fin est serv ice fo r y o u an d y o u r cu sto m ers.
— ---- O ur fu lly co m p u te riz e d p ro g ra m is easy to a d m in ister, sa v in g y o u
tim e and m o n ey .
-------- T h e e c o n o m ie s o f o u r cred it in su r a n c e o p era tio n are p a ssed on
to y o u .
-------- W e offer p eace o f m in d fo r y o u , as th e c o m m u n ity b a n k er, by a llo w
in g y o u to offer y o u r cu sto m ers th e fin est and m o st c o m p le te cred it
in su r a n c e p ro g ra m .
If you’d like to investigate our fine program further, please call collect (515-2783311) to:
PAUL T. W O LD
Vice President
DON BROW N
Eastern Representative

MEL ZOERB
Western Representative

C urrently licensed in Colorado, Iowa, Minnesota, M issouri,
M ontana, Nebraska, North Dakota and South Dakota.

C O N TIN EN TA L

W EST ER N

L IF E IN SU RA N C E CO M PA N Y

Urbandale, Iowa
N orthw estern

B an ker,

August,

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

1972

Now! An absolutely accurate, simple
to operate, com pletely portable currency
verifier. The Brandt 802 handles hundred
bills a minute — has double detection
se n so rs— and signals with a red light
when verification doesn’t agree
with pre-count.

Write for Bulletin BAC-811.

New Brandt
Currency Verifier

For the verification of incoming,
outgoing and in-house currency
S IN C E

1890

RAN DX
Watertown. Wi sconsi n 5 3 0 9 4

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Federal Reserve Bank of St. Louis

i nc

B R A N D T®
C A S H IE R ®

N ew F in an cial S u rvey by H arris B an k
NEW INDICATOR category for
business economic conditions —
executives for financial institutions —
is being introduced
via the results of
a national survey
c o m p l e t e d by
Harris Trust and
Savings B a n k ,
Chicago. It is the
first time an opin
ion poll has been
specifically
directed
to top
C. M. B Ü S S
level executives of
banks, savings and loan associations,
brokerage and bond houses, mortgage
banking firms, insurance and finance
companies, and real estate investment
trusts.
The financial institution executives
foresee an optimistic picture over the
next six months for business and cor
porate profits, consumer conditions,
and Phase II effect. They have mixed
reaction about whether additional
government controls would benefit the
economy.
Charles M. Bliss, executive vice
president and head of the banking de
partment, presented the survey results.

Business/Corporate Profits
An increase in business activity to
at least year end is seen by 84% of the
money men, who agree that the U.S.,
is undergoing a broad-based economy
recovery. More than three-fourths of

those surveyed predict that a higher
prime rate and higher short-term inter
est rates are on tap for the near fu
ture. (Since this survey was completed,
some major banks have raised prime
rates to 5Vi per cent.)
Unemployment is expected to de
crease in the opinion of 45% who
were polled, while 17% see an up
swing in the out-of-work force.
The interviewees split almost evenly
on whether or not the Dow Joes In
dustrial Average would be higher or the
same on December 31 as it was at mid
year — 44% say it will increase.
46% say it will be the same. Six per
cent fortell a decrease, and the remain
ing 4% have no opinion.
Inflation, the bugaboo of Phase II,
will continue at its present pace to the
end of the year, according to 71% of
the financial intermediaries. However,
22% see the probability of a decreased
rate of inflation. By contrast, many
economists expect greater inflation
over the remainder of the year.
Seventy-five percent of the re
spondents foresee a general increase
in corporate profits for 1972. As far
as profits for their own companies,
65% of the financial people have a
bright outlook for the bottom line.
The consumer outlook for the next
six months looks good to 69% of the
financial people polled with 80% ex
pecting an increase in consumer spend
ing.
Along with spending more, the con

We catch every change.
Do you?
There have been no less than
10,829 significant changes in
v o l v i n g new b a n k s , new
branches, mergers and changes
of top executives since the last
edition, six months ago.
Put another way, this new edi
tion eliminates 10,829 opportu
nities for your bank’s employees
to make a mistake.
But only if you order enough
new editions to go around.

R A N D M cN A LLY
Bank Publications Division
Box 7600, Chicago, III. 60680
10 East 53rd Street, New York, N.Y. 10022
206 Sansome St., San Francisco, Calif. 94104

N orthwestern

Banker,

August,

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

1972

sumer also will save more, according
to 80% of the interviewees. This will
take place, they feel, because consumer
spending will be financed through in
creased borrowing.
Sixty-three percent of those polled
predict greater demand for new resi
dential housing, and 46% look for a
moderate increase in the mortgage
rate, while 50% see this rate remain
ing stable.
Top managers of financial organiza
tions feel more strongly than do
corporate executives as a whole that
Phase II is effectively controlling
wages, prices, and inflation.
According to the Harris Bank sur
vey, Phase II is considered as an ef
fective control on wages by 73% of
the respondents, on prices by 75% ,
and on inflation by 68% . This is in
sharp contrast to a recent McGrawHill study of top-level businessmen. In
it, the favorable response rate on
Phase II as a control on wages was
30% , on prices was 29% , and on in
flation was 46% .
However, as predictors of Phase II’s
effects on corporate profits, 40% of
the financial institution executives
proved accurate “weathervanes.” They
said profits would rise — which they
did, substantially — when most
economists had predicted profits would
remain stable.
In the area of government controls,
the Harris Bank survey shows that
57% of financial intermediaries favor
wage and price controls, while 40%
oppose them.
Seventy-five percent are against any
control on the prime rate, 73% oppose
control of profits, and 57% express
opposition to rent control.
Most of those favoring any types of
controls say they should be enforced
only for the next six to 12 months.
About the Survey
The Harris Bank’s three-page survey
questionnaire was mailed during the
second week in May to a national ran
dom sample of 2,000 financial institu
tion executives who are vice presidents
or higher level officers of their com
panies.
The response rate of 34% (636 per
sons) was unusually high for a survey
of this kind, and the composition of
the respondents closely matched that
of the whole sampling. Responses were
cut off after 11 days, to insure time
liness of the reported results.
Similar surveys will be made on a
continuing basis by the bank.

Bankers: ■
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Name
Address

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Federal Reserve Bank of St. Louis

City

m
State

Zip

N orthw estern

Banker,

August,

1972

(T1

The lines went around the block at American Express Company S.A.I., Piazza de Spagna No. 38, Rome, Italy.,

N o rth w e ste rn B a n k e r, Au gu st,
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1972

THE DAY YOUR CUSTOMERS
WERE GLAD TO HAVE A LINE TO STAND IN.

STRANDS
AMERICANS
ABROAD.

«
i

its subsidiaries extend to your
custom ers a broader range of
services th an any other trav elers
cheque issuer in the world.
H ere are a few reasons you
should recom mend them.

THE MOST RESPONSIVE REFUND
SYSTEM IN THE WORLD.

P-

If your custom er’s A m erican E x
press T ravelers Cheques are ever
lost or stolen, he can get a refund
—usually on the same day he re
ports the loss a t any one of the
885 A m erican E xpress Company,
subsidiary or representative of
fices around the world.
N o te : Each office is staffed
w ith E nglish-speaking personnel
fo r your custom er’s convenience.

MONETARY INSTABILITY CAUSES
WIDESPREAD PROBLEMS
H O M E - a u g u s t 16 - A fresh wave of mone
tary uncertainty swept around the world to
day. For people travelling: overseas, caught
at the height of a record-setting tourist sea
son, it was a bombshell.
Travelers encountered widespread prob
lems due to the absence of stable rates of
exchange. One American reported he was
even unable to purchase film and postCj
because

REFUNDS 365 DAYS A YEAR

Few overseas trav elers will
fo rg e t th is day. The m onetary
paralysis struck everyw here. In
some countries the banks w ere
closed. In m any countries the
foreign exchange m arkets did not
open. A t those hotels, shops,
re s ta u ra n ts and ticket counters
w here trav elers w ere able to
exchange th e ir money, it was
usually a t an unfavorable rate.
F o r people carry in g A m eri
can E xpress T ravelers Cheques,
it was a different story. A m erican
E x p ress Com pany and subsidi
a ry offices thro u g h o u t the w orld
stayed open and kept cashing
A m erican E xpress T ravelers
Cheques a t a fa ir ra te of ex
change. So A m erican E xpress
custom ers w ere able to w eather
the financial chaos w ith a m ini
mum of inconvenience. (The lines
a t A m erican E xpress Company
an d subsidiary offices w ere long,
b u t people didn’t seem to m ind.
They w ere g rate fu l to have a
line to stand in.)
A ugust 16,1971. A day of
crisis fo r A m ericans abroad. E x
cept fo r the custom ers of A m eri
can E xpress.

The A m erican E xpress T ravelers
Cheque has an em ergency sys
tem called R efu n d 365SMth a t can
provide a p a rtial refund of up to
$100 on weekends and holidays
in key travel areas th roughout
the world. Most other travelers
cheques can’t be refunded outside
norm al banking hours. In some
countries, the num ber of week
ends and holidays when banks
a re n ’t open totals as m any as 120
days. T h a t’s fo u r m onths out of
the year those trav elers cheques
can’t be refunded.
AMERICAN EXPRESS, THE WORLD'S
MOST ACCEPTED TRAVELERS CHEQUE

The A m erican E xpress T ravelers
Cheque is welcomed from Auck
land to Zurich. Because of its
name, our Cheque is as negotiable
in out-of-the-w ay places as it is
in the m ajo r cities of the world.
W hich is one reason m ore of our
T ravelers Cheques are used th an
all others combined.

BACKED BY THE WORLD S LARGEST
TRAVEL COMPANY

If your custom er carries our
T ravelers Cheque, he will have
the global netw ork of Am erican
E xpress Company, subsidiary
and rep resen tativ e offices a t his
service. In addition to cashing or
refunding T ravelers Cheques,
these offices provide a full range
of travel-oriented services: tra n s
portation, car rental, and hotel
re se rv a tio n s; p assp o rt and visa
in fo rm a tio n ; sightseeing tours.
THE ONLY TRAVELERS CHEQUE
ISSUED IN FIVE DIFFERENT CURRENCIES

The A m erican E xpress T ravelers
Cheque can be purchased in U. S.
dollars, C anadian dollars, Swiss
francs, pounds sterlin g and
Deutsche m arks. I t ’s the only one
issued in all these im p o rtan t
currencies.
WHAT AMERICAN EXPRESS TRAVELERS
CHEQUES CAN DO FOR YOU

They insure custom er satisfac
tion. The kind of satisfaction
th a t allows the relationship you
have w ith your custom er to
continue untarnished. And in his
lifetim e, a custom er will come to
you fo r his m ortgage, car loans,
personal loans, home im prove
m ent loans, etc.
W hy jeopardize your relation
ship w ith him because he has an
u n fo rtu n a te incident w ith the
w rong trav elers cheque?
W ith A m erican E xpress you
can re st assured he has the rig h t
T ravelers Cheque.
W hether your custom er is
trav elin g dom estically or abroad,
m ake sure you recom mend A m er
ican E xpress T ravelers Cheques
fo r his next trip . Because all tra v
elers cheques are not the same.

ALL TRAVELERS CHEQUES
ARE NOT THE SAME

We would like you to consider the
A m erican E xpress T ravelers
Cheque as an extension of the
service arm of your bank.
A m erican E xpress Company and

A M E R IC A N

EXP R ES S

The Travelers Cheque
N orthw estern

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

Banker,

August,

1972

Corporate News
and other news an
P ROMOTIONS
nouncements have been made by
the following firms:
CMI investment Corp., Madison,
Wis.: Keith A. Yelinek, Joseph F.
Schmitt, Jack Kronemeyer and David
Totzke have been promoted to posts
with CMI insurance subsidiaries.
Mr. Yelinek has been named vice
president — corporate development, of
Continental Mortgage Insurance, Inc.
Continental is the nation’s second larg
est private insurer of residential mort
gages. He was formerly vice president
and treasurer of the Rural Insurance
Companies, and had previously served
as a trust officer of the American Ex
change Bank.
Mr. Kronemeyer has been appointed
coordinator of claims for CMI Credit
Insurance, Inc., a leading insurer of
mobile home credit loans. Formerly he
was claims manager for Foremost In
surance for five years. Prior to his em
ployment with Foremost, he was em
ployed in various sales and production
capacities for a manufacturer of travel
trailers and mobile homes. He also
served for ten years as an officer of the
Union Bank in Grand Rapids, Mich.,
where he headed the collection depart
ment.
Mr. Schmitt has been named staff
attorney for the CMI subsidiaries. Be
fore joining CMI he was a member of
the Madison City Attorney’s staff.
Mr. Totzke will be CMI Credit’s of
fice manager. Formerly a loan officer
with the First National Bank in Three
Rivers, Mich., Mr. Totzke has had ex
tensive experience with installment
credit and finance.
Diebold, Inc., Canton, Ohio: Robert
P. Barone has been named product
manager of remote banking equipment,
according to Earl
F. Wearstler, vice
president and gen
eral manager of
the bank division.
M r . Barone’s
initial assignment
with Diebold was
as assistant man
ager of marketing
and product plan
ning, bank divi
sion. In this post he worked mainly
with future remote banking equipment,
N orthw estern

Banker,

August,

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

1972

gaining, Mr. Wearstler said, “valuable
experience he will bring to his new
post.”
Prior to joining Diebold, Mr. Barone
served as manager, market planning
control for National Cash Register Co.
in Dayton. He also had been manager,
marketing stategy and account repre
sentative for NCR and, earlier, mar
keting team manager with Xerox Corp.
Excel Investment Co., Bettendorf,
la.: Ronald H. Coelyn has been ap
pointed vice-president of finance, it
was announced by company president
Thomas Hemphill.
Mr. Coelyn, a graduate of the Uni
versity of Illinois, had previously been
with the Chicago office of Haskins and
Sells, Certified Public Accountants,
where he handled companies in the
mortgage guaranty insurance field.
Mosler Safe Co., Hamilton, Ohio:
Four executive promotions have been
announced.
William D. Smith has been named
director of finance and treasurer of the
company, according to Executive Vice
President R. William Ayres, Jr. He
was formerly director of finance for the
security, graphic arts and building spe
cialties business area of AmericanStandard, Mosler’s parent company. In
his new position he will be responsible
for all Mosler accounting and financial
functions.
Mr. Ayres also announced that Per
ry A. Newcomb has been appointed
director of industrial relations and per
sonnel. He will be responsible for all
company industrial and employee rela
tions activities, and he was previously
director of industrial relations for the
security, graphic arts and building spe
cialties business area of American
Standard.
In the sales and service division,
Joseph MacDonald, vice president and
general manager announced the pro
motions of Edward J. Mulvey to gener
al manager, national service organiza
tion, and Dean R. More to general
manager, national sales and installa
tion. Mr. Mulvey was most recently
director of marketing, Mosler Airmatics Systems Division, Wayne, N. J.,
and Mr. More was previously South
west Regional sales manager for
Mosler.
NYTCO Services, Inc., St. Paul:
John G. Hogan and Mike Meyer have
been named assistant vice presidents
of the company.
Mr. Hogan has been with the com
pany since 1965. He services bank and

M. M EY ER

J. G . H O G A N

industrial accounts in Minnesota, Wis
consin and the Dakotas. He attended
St. Thomas College and the University
of Minnesota.
Mr. Meyer was named head of
NYTCO’s Omaha regional office. A
graduate of the University of Nebras
ka, he has been with the company
since 1970. He is well-known in the
Omaha area as an official for area high
school basketball.
Platt, Tschudy, Norton & Co., Inc.,J
Minneapolis: A new alignment of of
ficers has been announced by the in
vestment management firm.
New chairman of the board is Stan
ley K. Platt. Richard H. Tschudy has
been elected president.
Others newly named officers are:
Charles Webster, senior vice president;
Wayne D. Kilgore, vice president; A.
Arthur Kaese and Charles H. Stod
dard, Jr., assistant vice presidents;
Douglas R. Platt, treasurer, and Lor
raine M. Kosslak, secretary.
Piper, Jaffray & Hopwood, Inc.,
Minneapolis: Thomas A. Sherman has
joined the company as a vice president.
The announcement was made by Pres
ident George Fox.
Mr. Sherman will work in the area
of tax-sheltered investment programs
and various area of company manage-.;
ment. He was formerly a partner in the
accounting firm of Lybrand, Ross,
Bros., & Montgomery, Minneapolis.
Janies Talcott, Inc., Chicago: Frank
J. Pope has been elected an assistant«:
vice president, it was announced by G.
Pat Bacon, vice’
p r e s i d e n t and
manager of the
Chicago District
office of the na*
tionwide finance
organization.
Mr. Pope is
credit manager for
the Chicago office
w
h i c h services
F. J . P O P E
businesses in Illi
nois, Indiana, Wisconsin, Eastern
Missouri and Western Kentucky.

v ■
C

■-■

Walter E. Heller & Compa
105 West Adams Street, Chicago, Illinois 6061
New York • Boston • Philadelphia • Baftimon
• Syracuse • Detroit • St. Louis • Atlanta «
Miami • Tampa • Birmingham • New Orleans
• Dallas • Phoenix • Los Angeles •
San Francisco • Portland • San Juan, P.R.
Heller services also available through Heller
companies in Canada and eighteen other
countries around the world.

•

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

*;Jt's embarrassing when p good
customfer, Kjngocfd relrspfi, needs more
money than aoanfccares to je n d . And
disturbing that he may go elsewhere.
A Heller-bank participation can solve
that problem peatly, w ith yotir bank
supplying part of the financing, and the
rest supplied by Heller. W ith this
cooperative approach, you keep your
good depository relationship . . . your
position is secured . . . and you also
demonstrate your ability to handle larger
loan requests to the entire community.
Heller has been working w ith banks in
this way form ore than 30 years. The
results have been mutually satisfying and
profitable. If you're of a mind to think
biggèr, think of Heller.

N orthw estern

B an ker,

August,

1972

W hat Bugs You A b o u t M oney?
A sk N a tio n a l C ity S ervice C en ter
NTRODUCTION of what is termed
“the first financially-oriented consum
erism program of its kind in the Twin
Cities” was announced recently by Na
tional City Bank of Minneapolis.
The program will assist consumers,
both customers of the bank and non
customers alike, with any kind of
money problems that concern them.
Answers to questions such as, “How
can 1 get my money back on the $5 bill
that just went through the wash in my
husband’s pants pocket?” or “How
many pesos can I get for an American
dollar while I’m on vacation in Mex
ico?” will be available along with an
swers to the more ordinary questions
about savings accounts, loans, etc.
The theme of the National City con
sumerism campaign and the bank’s
new Consumer Service Center will be
“Tell us what’s bugging you about
your money problems, so we can serve
you better.”
The Consumer Service Center will
be staffed by specially-trained “ladybugs,” young ladies who will answer
questions, listen to inquiries and accept
ideas from consumers on all subjects
that concern money. Many of the in-

paign gets underway, ideas suggested
by some of the consumer inquiries
might be used to develop new and bet
ter banking services to be offered in
the future by National City, according
to Mr. Jacobs.

Y o u can re n t
T h is ad v an ced A M S
A u t o m a t ic
C o in W ra p p e r
(w it h an o p tion
to buy)

Fo r $95
per month
p lus
six m ills
per roll !

T ax R u lin g On T ru sts
NATIONAL C iTY BAN K

“ LADYBUG” Penny Kalar helps consum ers
elim inate “ bugs” in th e ir finances.

quiries will be answered immediately,
but on the more technical questions,
the “ladybugs” will gather the required
information from sources inside and
outside the bank and reply to con
sumers within 48 hours.
In describing National City’s in
volvement in the consumerism move
ment, C. B. Jacobs, chairman of the
board, said, “The depth of our com
mitment to serving the present and fu
ture needs of Twin City area con
sumers is indicated by the fact that all
of our people have recently completed
a nine-week course aimed at improving
our customer service.
“We have also set up and staffed an
entire department that will be devoted
exclusively to consumer service, and
we are devoting our entire advertising
and promotion budget to a campaign
designed to get consumers to ask us
for information about their money
problems.”
The bank expects that, as the cam

A potentially valuable estate plan
ning device — one which the Govern
ment claims will “open a substantial
loop-hole in the estate-tax law” — has
been upheld by the U.S. Supreme
Court.
In a 6-3 decision, the Court rules
that stock transferred to an irrevocable
trust is not includable in the gross
estate of a controlling stockholder who
during his lifetime retained the right
to vote the transferred shares, veto the
trustee’s transfer of the stock, and re
place the trustee.
The Court’s dissenters said they be
lieve Congress ordered that, “if one
wishes to avoid a tax at death, he must
be self-abnegating enough to totally
surrender his property interest during
life.”

ABA P la n s In v estm en t
C o n feren ce In 1 9 7 3
The American Bankers Association
has announced plans for its first na
tional Bank Investments conference.
ABA member banks’ investments in
securities for their own accounts total
more than $160 billion.
George W. McKinney Jr., chairman
of the new division, said the three-day
conference, scheduled at Stauffers
Riverfront Hotel, St. Louis, Feb. 28March 2, 1973, will mix nationally
known speakers with a variety of
specialized workshops. The program
will be tailored to meet the needs of
senior officers who handle investments
for the 13,350 member banks of the
Association.

INSTALMENT DEPARTMENT
PROFITS
More important than ever before!

PROTECT THEM
All the latest features of the new AMS
Model C System. Write Cummins-Chicago,
4740 N. Ravenswood Ave., Chicago, IL
60640; or call (312) LO 1-6600.
m Business Ano banks

since test

'Cum m ins
CUM M IN S-C HIC AGO

C O R P O R A T ION

A CUMMINS-ALLISON
COMPANY
4740 N. Ravenswood Ave. • Chicago IL 60640 [312) 561 6600
S A L ÍS AND SERVICE in ALL PRIN CIPAL C ITIE S

29-1289
N orthw estern

Banker, August,

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

1972

Several hundred Upper Midwest banks utilize our single interest coverage,
which we originated many years ago. No checking for primary insurance.

Instalment lending protection is our only business.

Call or W rite: G. D. VAN WAGENEN CO.
1006 N.W. Bank Bldg., Minneapolis 55402
(612) 333-2261

Morgan Guaranty Trust Company
OF

NEW

YORK

C o n so lid a iv d stu tvm n n t o f co n d itio n

D irecto rs

Jun e 3 0, 1 9 7 2

ELLMORE C . PATTERSON
C h a ir m a n o f th e B o a rd

A ssets

Cash and due from b a n k s .............................
U. S. Treasury securities...................................
Obligations of U. S. government agencies .
Obligations of states and political subdivisions
Other investment secu rities.............................
Trading account s e c u r itie s .............................
Federal funds sold and securities
purchased under agreements to resell .
Loans .....................................................................
Bank premises and e q u ip m e n t.......................
Customers’ acceptance liability.......................
Other a sse ts.........................................
Total a s s e t s ...............................................

$ 4,196,871,348
716,192,923
37,683,286
701,670,452
257,678,436
149.075,858
10,266,000
7,234,128,517
83,514,280
257,947,535
483,740,289
$14,128,768,924

W A L T E R H. P A G E
P r e s id e n t

J. PAUL AUSTIN
C h a ir m a n o f th e B o a rd
T h e C oca-C ola C o m p a n y
R. M A N N I N G B R O W N J R .
C h a ir m a n o f th e B o a rd
N e w Y o r k L i fe I n s u r a n c e C o m p a n y
C A R T E R L. B U R G E S S
C h a ir m a n o f th e B o a rd
S k y C h e fs , In c .
F R A N K T. C A R Y
P r e s id e n t
I n te r n a tio n a l B u s in e s s M a c h in e s C o r p o ra tio n

¡.¡a b ilitie s

Demand d e p o s it s .................................................... $ 4,386,876,337
Time d e p o s it s ..............................................
2,258,723,477
Deposits in foreign o f f i c e s ...................................
4,070,878,183
Total d e p o s i t s ..............................................
10,716,477,997
Federal funds purchased and securities
sold under agreements to repurchase .
1,229,366,000
Other liabilities for borrowed money . . . .
133,339,884
Accrued taxes and expenses...................................
116,394,887
Liability on accep tan ces........................................
287,631,956
Dividend p a y a b le ........................................
14,597,440
Convertible debentures of a subsidiary
( 41/ 4 % , due 1 9 8 7 ) ....................... . .
50,000,000
Mortgage p a y a b le ....................................................
16,878,636
Other l i a b i l i t i e s ........................................
407,461,937
Total lia b ilitie s .................................................... $12,972,148,737
Itese rce

For possible loan l o s s e s ......................................... $

116,720,296

C a p ita l aceoants

Capital notes ( 6 % % , due 1 9 7 8 ) ............................. $
100,000,000
Capital notes ( 5 % , due 1 9 9 2 ) .......................
94,000,000
Equity capital:
Capital stock, $25 par value (9,123,400 shares)
228,085,000
Surplus .....................................................................
336,500,000
Undivided p r o f it s ..............................................
281,314,891
Total equity capital..............................................
845,899,891
Total capital a c co u n ts........................................
1,039,899,891
Total liabilities, reserve, and capital accounts $14,128,768.924
A s s e ts c a r rie d a t $ 1 ,4 5 9 ,6 5 7 ,0 7 3 in th e a b o v e s ta t e m e n t w e r e p le d g e d as c o l
la te r a l fo r b o r r o w in g s , to q u a lify fo r fid u c ia r y p o w e r s , to s e c u r e p u b lic
m o n ie s a s r e q u ir e d b y la w , a n d fo r o th e r p u r p o s e s .
M e m b e r , F e d e ra l R e s e r v e S y s te m , F e d e ra l D e p o s it I n s u r a n c e C o rp o ra tio n

2 3 W a l l Str e et, F ifth A v e n u e a t 4 4 t h Str eet ,

A V 'tr Y o r k

M adis on A v e n u e at 5 8 th Street , 4 0 R ocke fe ll e r Plaza,
Park A v e n u e at 4 8 th Str e et
A b ro a d

Lo n d o n , Paris, B ru sse ls, A n t w e r p , Fra n kfu rt,
D ü s se ld or f, M u n ic h , Z ü rich, M ila n a n d R o m e
(B a n c a M o rg a n V o n w il le r S.p.A.), T o k y o , N a s s a u
R e p r e s e n ta t iv e offices in M adri d, Beirut, S y d n e y ,
H ong Kong , Säo Paulo, C arac as

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Federal Reserve Bank of St. Louis

W. G R A H A M CL A Y T O R JR.
P r e s id e n t, S o u th e r n R a ilw a y S y s te m
E M I L I O G. C O L L A D O
E x e c u tiv e V ic e P r e s id e n t
S ta n d a r d O il C o m p a n y ( N e w J e rs e y )
C H A R L E S D. D I C K E Y J R .
C h a ir m a n o f th e B o a rd
S c o tt P a p e r C o m p a n y
J O H N T. D O R R A N C E J R .
C h a ir m a n o f th e B o a rd
C a m p b e ll S o u p C o m p a n y
LEWIS

FOY

P r e s id e n t, B e t h le h e m S te e l C o rp o ra tio n
T H O M A S S. G A T E S
C R A W F O R D H. G R E E N E W A L T
C h a ir m a n , F in a n c e C o m m itte e
E. I. d u P o n t d e N e m o u r s & C o m p a n y
H O W A R D W. J O H N S O N
C h a ir m a n o f th e C o r p o ra tio n
M a s s a c h u s e tts I n s t i tu t e o f T e c h n o lo g y
DO NA LD P. K I R C H E R
P r e s id e n t, T h e S in g e r C o m p a n y
R A L P H F. L E A C H
C h a ir m a n o f th e E x e c u tiv e C o m m itte e
JO H N M. M E Y E R JR.
HOWARD J. M OR GEN S
C h a ir m a n o f th e B o a rd
T h e P ro c te r & G a m b le C o m p a n y
T H O M A S L. P E R K I N S
C h a ir m a n o f th e T r u s te e s
T h e D uke E n d o w m en t
De w i t t p e t e r k i n j r .
V ic e C h a ir m a n o f th e B o a rd
D O N A L D E. P R O C K N O W
P r e s id e n t
W e s te r n E le c tr ic C o m p a n y , In c o r p o r a te d
T H O M A S RODD
V ic e C h a ir m a n o f th e B o a rd
O L C O T T D. S M I T H
C h a ir m a n , E x e c u tiv e C o m m itte e
o f th e B o a rd o f D ire cto rs
A e tn a L ife a n d C a s u a lty C o m p a n y
H E N R Y S. W I N G A T E
D ir e c to r a n d C h a ir m a n A d v is o r y C o m m itte e
T h e I n te r n a tio n a l N ic k e l C o m p a n y
o f C a n a d a , L im ite d

N orthwestern

B an ker,

August,

J 972

The Bank for Banks says:
‘If you don’t see what you want,
ask for it!’
Chemical Bank’s own trust investment group works with some
$6 billion of other people’s money. We have 23 Analysts,and
11 Vice Presidents who make up a Senior Policy Committee
with investment experience totaling 275 years. Their full-time
concern is to decide how best to invest this $6 billion.
And while others may do a comparable amount of research
for their own use, Chemical is one of the few major banks that
shares so much of this investment information with subscribing
Correspondent banks. It’s an impressive amount of informa
tion, too. In a typical year, we may publish up to 100 separate
issues covering these four investment areas: Market Ratings, a
report (updated weekly) on some 250 stocks, as well as com
ments on specific situations; Investment Forecast; Industry
Studies; and Special Reports (topical subjects of immediate
interest).

Some subscribers to our Trust Investment Advisory Service say
we provide more information than they need. Others say they
not only use it all, but frequently call Vice President Hugo
Heuermann for more. Often, callers are further referred to the
particular Analyst who knows the subject in depth.
The Bank for Banks helps you do more for the money
in trust with you through this combination of written and
personalized information service. The information we
provide is yours to use —as much or as little of it as you may
need. And if you don’t see what you want, you have only to
ask for it.
We have a new booklet that describes our service in some
detail. Ask your National Division Representative for a copy;
call Mr. Richard McGoldrick at (212) 770-2063. or write to
him at 20 Pine Street, New York, N.Y. 10015.

ChEMICAL
We do more for your money.

N o rth w este rn B an ker, August,
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1972

NebraskaSupreme Court
Upholds Verdict for
Bank of Valentine Cashier
>
N A DECISION with far-reaching
implications, the Nebraska Su
preme Court has determined that
Frank Colburn, who was cashier and
a director of the now defunct Nebraska
State Bank of Valentine, Nebr., was
not negligent in his duties and should
not be held liable in any way for the
embezzlement of approximately $4
million by the then president of the
bank, Richard L. Davenport.
As president of the bank, Mr. Dav
enport had embezzled the above
amount, the bank was closed October
29, 1964 by the Nebraska department
of banking, and Mr. Davenport sub
sequently was found guilty and sen
tenced to the Nebraska penitentiary,
from which he has now been released.
Mr. Colburn, a 35-year employee
of the bank, was cashier of the bank
since 1930. The Nebraska department
of banking, in its later efforts to re
cover as much of the loss as possible,
sued Mr. Colburn for liability in his
positions as both cashier and director,
alleging negligence in the performance
of his duties for not having discovered
and reported the embezzlement.
A lower court jury found for Mr.
Colburn. However, the judge set this
verdict aside on the grounds of obvious
error and that the verdict controverted
facts and found for the department of
banking. Mr. Colburn’s attorneys ap
pealed the district court ruling to the
Nebraska Supreme Court. This resulted
in a split decision favoring Mr., Col
burn. The department’s appeal to the
Nebraska Supreme Court for a rehear
ing based on 34 alleged errors was de
nied last month and the case was re

-c
x

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Federal Reserve Bank of St. Louis

manded to the district court with in
structions to reinstate the original jury
verdict.
Banking authorities feel that the lat
est Nebraska Supreme Court decision
has far-reaching implications for it
leaves unanswered many important
questions.
In the majority opinion, the Nebras
ka Supreme Court stated in part:
“Richard L. Davenport testified, by
deposition, that sometime after 1948
he commenced the misapproriation of
bank funds. By 1950 or 1951 the bank
had become insolvent. His method of
operation involved the use of notes and
property statements that had been
signed in blank by customers of the
bank. He would fill out the notes and
property statements and then insert the
notes into the flow of daily transactions
of the bank or send them directly to
a correspondent bank. An account
might be opened to receive the pro
ceeds from the spurious note. The pro
ceeds from the notes would be trans
ferred by use of debit memorandums.
When monthly statements were made
he would hold the statements or have
them remade so that the accounts
would appear to have proper balances.
“The embezzlement was difficult to
discover because the transactions ap
peared to be regular on their face. The
signatures were genuine and the prop
erty statements seemed to justify the
loans. The bank did a large volume of
business and occasionally had a mil
lion-dollar day. On a typical day there
would be 3,000 or more bookkeeping
entries of which only 4 or 5 might re
late to spurious transactions. Notes

that were placed directly with corre
spondent banks would appear only in
the total remittances for the day. The
matter was further complicated in that
some of the notes were valid in part.
“Colburn had his desk near the
front door of the bank and devoted a
large part of his time to an insurance
business that he had operated since
1930 and as a partnership with Daven
port. His other duties included super
vision of the bookkeeping department
and the cash in the bank. The loans
were handled by Davenport although
Colburn occasionally handled small
transactions. Davenport opened all the
mail and kept many of the records in
his office in a locked file.
“Although Colburn had been the
cashier of the bank for nearly 35 years,
he was not familiar with statutes or di
rectives of the Department of Banking
concerning the duties of the officers
of a bank. His understanding was
based upon his experience in the bank
and his association with the Daven
ports. He had complete confidence in
Richard L. Davenport, as did the other
officers, employees, and customers of
the bank.”
The Supreme Court opinion stated
further:
“In addition to the evidence which
has been summarized, the following
matters were of significance in this
case. The defendant owned only about
4 percent of the stock. The Deputy Di
rector of Banking testified that Daven
port dominated the affairs of the bank
SUPREME COURT . . .
( Turn to Page 68, please)
N orthw estern

Banker, August,

1972

How to Improve Profit Planning
In the Small Bank
By HOWARD G. JOHNSON
Partner
Price Waterhouse & Co.
Buffalo, New York
. . . delivered before the Southern
Regional Convention of the Bank A d
ministration Institute in Tulsa, Okla
homa.

ECENTLY I was looking at an
issue of a national bank maga
zine. I was drawn to the first ar
ticle listed on the cover. It is titled
“Bank Stocks — Views of Top Bank
ing Analysts.” It was written by a stock
market specialist. I expected the
author to discuss price earnings ratios,
forecasts of interest rates, bank growth
trends, and similar matters. And in
deed he did. But he also brought
another factor into his analysis of bank
stocks. That factor was profit planning.
In fact, the author states, “As an
analyst, I have found that a bank with
a good . . . profit plan generally has the
best earnings performance.” He goes
on to say, “Bankers used to view
themselves as helpless victims of their
local environment, government fiscal
trends and the policies of the Fed,
. . . (but) sophisticated investors are
learning that some managements can
plan their way around . . . (these
things). The stocks of these banks
command premium prices. . .” This is
a powerful testimonial! One that
should impress every banker!
Possibly your reaction is, “Fine. We
agree. But how do we approach it?
What is important in starting?” Fore
most, bank management has to adopt
what I call “the planning philosophy.”
Whereas in the past, the banker might
have budgeted and forecast what he
thought would happen, he now has to
adopt a philosophy of planning what
he thinks he can make happen. This
is the essence of sound profit planning
. . . finding ways to make profits hap
pen.
The actual experience of one par
N orthw estern

Banker,

August,

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

1972

ticular bank may serve to illustrate
what “the planning philosophy” is and
what it can accomplish. Based upon
its long-range growth plan, the bank
had a target of earning $5.00 per
share for the coming year. But . . . lo
and behold . . . with increasing
salaries, higher costs for deposits, less
attractive loans, and other less favor
able conditions than in the past, the
preliminary budget and profit plan
projected much lower earnings. Pre
liminary planned earnings were 900
short of the $5.00 target. This was also
less than actual earnings for the cur
rent year.
Everyone was a bit startled. What
was the problem? Well, the most
serious problem was that this was not
really a plan . . . it was a forecast
. . . probably a very realistic forecast
based upon existing costs, business mix
and other conditions. However, profits
wouldn’t increase from that forecasted
$4.10 level just because someone
thought they should. If they were to
increase, management would have to
find a way to make them increase. So
in this particular case, management be
gan to do just that . . . search for ways
to make profits increase.

A number of important steps were
taken:
(1) Each department head was re
quested to review personnel costs in
order to decrease or justify staff levels
and salary increases.
(2) The emphasis of the marketing
program was modified . . . particular
ly to attract larger numbers of the
more profitable demand deposits and
installment loans.
(3) Fee policies and rate structures
were reviewed. Plans were made for
higher charges in certain cases and for
fewer waived fees.
(4) Plans for a number of major
expenditures were deferred.
Various other steps too numerous
to mention were taken. The profit
plan was modified to reflect all the
changes and it was summarized a sec
ond time. Planned earnings were only
250 short of the $5.00 target. Now it
was more a plan than a forecast.
But still, management was not satis
fied. They decided upon a number of
additional steps:
(1) Fees at certain branches still
seemed unusually low. They were
analyzed for the largest customers. As
a result, service charges and com
pensating balances were renegotiated
in a number of cases.
(2) Expected staff increases still
seemed unusually large in certain de
partments. They were analyzed and as
a result, some of the planned increases
were deferred or eliminated.
(3) Additional funds were ear
marked for tax-free municipal securi
ties which were the highest yielding in
vestments for this bank.
The final, approved profit plan indi
cated earnings of $4.90 per share. This
was less than the $5.00 target, but a {
lot better than the original forecast of
$4.10. Management had indeed made
profits increase. The story has a par
ticularly happy ending. Profits for the
bank that year actually exceeded the
$4.90 profit plan by several cents. The
disciplines of the planning philosophy

23
T had improved performance for the
bank.
Once there is the determination to
make profits happen, the next step is
to find the tools that will facilitate the
process. There are probably many
tools that might be discussed . . . such
things as responsibility accounting,
various paperwork routines and proce
dures, well-defined organization struc
tures, etc. But we would like to call at
tention to one fairly new and modern
tool that can often be of major im> portance. That tool is “the financial
planning model.” It can have a major
' impact in profit planning by allowing
numerous alternative courses of action
to be evaluated quickly and easily.
“The Financial Planning Model”
As background, we might pose two
% questions, “What are models?” and
more particularly, “What are financial
planning models?”.
A model is a representation of
something that either does exist, will
a exist, or someone wants to exist. It
may be something that others wish to
use as a standard to imitate, or to
measure actual conditions against. A
model may be a representation that is
easier to understand or modify than
the real thing. These are examples of
that type of model.
Many of us have built model cars
and we’ve all used maps. Money itself
is a kind of model representing future
claims on goods or services. It is far
less trouble to carry cash with us than
bushels of wheat. It is easier to under
stand the relationship between cities
A by using a map than by inspecting the
physical area. It is simpler to modify
a clay mock up of a newly designed car
than to reshape the metal fender.
A financial planning model is a spe
cial type of model. It is designed to aid
r management in forecasting the future
and in the analysis of possible alterna
tive actions. The executive, as he
plans, is faced with incomplete knowl
edge of the future. It is difficult to
judge alternatives unless you can
visualize the impact of each potential
action upon the end result. This is
where the model becomes an invalu
able aid. With it, for example, the
executive might obtain an estimate of
earnings per share under a series of al
ternative business mixes on conditions.
Many modeling systems are avail
able today. Large banks often design
r unique modeling systems for their own
operations and maintain them on their
in-house computers. Small banks often

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Federal Reserve Bank of St. Louis

obtain more general types of modeling
systems at small cost from cor
respondent banks or others. The BAI,
as you probably know, has a modeling
system; many software houses have
them for sale. Typically, these general
systems consist of a series of computer
programs to be run on a time-sharing
computer many miles from the bank.
The planner, however, can remain at
the bank and introduce information,
make changes and print-out results on
a terminal.
How does a modeling system work?
Every system is a little different.
Typically, the information entered in
to the system over the terminal in
cludes such data as —
. . . the income statement and state
ment of condition for the most recent
period and several prior periods.
. . . planned management actions for
coming periods, such as information
concerning the opening of a new
branch or the marketing of a new issue
of capital notes.
. . . various assumptions, such as the
expected rate of growth, interest rate
levels for various types of items,
liquidity or other ratios to be main
tained, and other “ground rules” for
the computer.
The computer programs use this in
formation to forecast and print-out
such financial statements as requested
for future periods. The benefit, of
course, is the speed with which the im
pact of alternative conditions can be

available for evaluation by the bank
planner.
For example, the planner could ask
the modeling system such things as —
. . . What would be the result on net
operating earnings if the prime rate
went up 1%, or down 1%, halfway
through the year?
. . . If we decided to increase in
stallment loans from 15% to 20% of
our earning assets, and reduce mort
gages accordingly, what would be the
result on net income . . . on bad
debts?
. . . If we opened three new branch
es during the year, what would be the
impact on our total footings. . . . on
liquidity ratios . . . on earnings? What
would the effect be depending upon
which locations were chosen, whether
the branch facilities were owned or
leased, whether the locations would
lend themselves to the promotion of
certain types of business?
Undoubtedly, the planner could
answer these questions and other
similar ones with a series of manual
calculations if he wished. But what if
he was considering the impact of 20
or 30 such questions, individually as
well as in various combinations. He
would probably spend several days do
ing manually what the computer sys
tem could do in several hours. Such
timesaving allows him to consider
many more alternatives with greater
care than he could on a purely man
ual basis.
N orthw estern

B an ke rt August,

1972

DEFINITION: Establish Financial and Quantitative Goals
DELEGATION: Fix Responsibility for Accomplishment
Increase Profits
by 15%

1
Senior V. P.
Banking Offices

Senior V. P.
Earnings Assets

Senior V. P.
Trust

Senior V. P.
Marketing

Senior V. P.
Administrative
Services

I_____ I_____ ______I_____ 1
Increase
Increase
Demand Deposits Consumer Loans
by 15%
by 10%
1
Open 5
New
Branches

*
Obtain 10
New
Auto Dealers

Increase nonStatutory Trust
Rates by 6%

Establish EDP
Payroll and
Billing Service

Establish
Monthly Branch
Profit Reporting

*
Obtain 5
New
Corporate Trust
Accounts

Develop
New
Advertising
Program

I
Implement
Clerical Work
Measurement
Program

Once there is the determination to
make profits happen, and the various
alternative courses of action have been
thoroughly considered, the final step
is to institute the management con
trols that will facilitate the realization
of planned goals. In the end analysis,
the management control can be re
duced to two basic phases. We often
refer to them as the two D’s: defini
tion and delegation.
Definition involves approving the
specific goals and a network of steps
to achieve them. Most of the goals in
the profit plan are financial, such as
increasing revenue or reducing costs
in a particular department. However,
other goals might be nonfinancial,
such as reducing personnel turnover
or increasing productivity in a particu
lar area.
The overall profit plan might in
clude a goal of increasing profits by
15%. The network of supporting
plans might include various steps, such
as the following:
Increase demand deposits by 15 per
cent.
Increase consumer loans by 10 per
cent.
Increase trust rates by 6 per cent.
Establish EDP payroll and other
services for customers.
Establish monthly branch profit re
porting.
The second “D,” delegation, in
volves fixing responsibility for accom-

N o rth w este rn Banker, August,
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Federal Reserve Bank of St. Louis

1972

plishment of each of the various steps
in the network. In the illustration above, delegation of responsibility is
shown by superimposing an organiza
tion structure on the network of goals.
The various senior vice presidents
are responsible for the individual steps
required to meet the overall goal.
Similarly, lower level responsibilities
are fixed with individual officers and
managers. Once accountability for per
formance is fixed, and progress report
ing is established, the bank is usually
well on its way to meeting its profit
planning goals.
In summary, effective profit plan
ning is a management philosophy more
than a system. It is a philosophy of
making profits happen. There are
many tools that enter into making
profit planning successful. One of the
more useful tools is financial model
ing . . . which allows the planner to use
the power of the computer to help
study the impact of many alternative
courses of action. Once the plan is es
tablished, accountability and per
formance measurement are the keys
to achieving the planned objectives.
Sound profit planning is not easy —
it is time consuming and takes a con
siderable amount of effort and atten
tion. But, as the stock market analyst
pointed out, if it is effective, it can lead
to superior earnings performance.
— End

Plan K ansas City C o n feren ce
R. Crosby Kemper, Jr., chairman of
the board of City National Bank and
Trust Company of Kansas City, has
announced d e
tails surrounding
the upcoming City
National Corre
spondent Bankers
and
Corporate
Treasurers C o n
ference to be held
August 19 and
20. Mr. Kemper
pointed out that R. C. K EM P ER , JR .
since the confer
ence was scheduled in between the
Democratic and Republican National
Conventions, the general theme of the
conference would be geared to the up
coming elections. This theme was used
in the invitations as well as the selec
tion of guest speakers and entertain
ers. Highlighting the two-day affair will
K î» o n

a ftp i-n n n n

hn«inp>;<;

s e s s io n

and

an evening of entertainment and a
Kansas City Royals baseball game.
Plans call for a Saturday luncheon
at the Hotel Muehlebach followed by
a business session at the Music Hall
of the Municipal Auditorium. Included
in the business session will be a key
note address by Edwin Newman,
NBC-TV News Correspondent. Mr.
Newman will be coming to Kansas
City directly from Miami where he is
preparing to assist in the coverage of
the Republican National Convention.
A panel of City National Bank officers
is also on the schedule. This discus
sion, entitled “A Vote for Profit,” and
covering the major areas of banking,
will be moderated by Ben B. Schifman, X
financial vice president of the Kansas
City Star. That evening the guests will
be treated to a dinner at the Hotel
Muehlebach, followed by an assort
ment of entertainment. They are in
vited to relive the Glenn Miller era
with the smooth vocal stylings of Ray
Eberle and the delightful Modernaires
with Paula Kelly. Then they can snap
back to the now generation with the
unconventional politicking of David
Frye, political mimic and humorist. 4
The evening will wind up with dancing
to the music of Tony DiPardo and his
Orchestra.
Mr. Kemper said that “Judging from
the turnout at our 1968 conference,
we expect about 1,500 guests to join
us for a weekend of business and
pleasure.”

DISC - Domestic
International
Sales Corporation

By LEWIS E. DAVIDS
Hill Professor of Bank Management
University of Missouri
Columbia, Missouri

HE TERM “DISC” is starting to
appear with some regularity in
banking publications. This ab
breviation for Domestic International
Sales Corporation is the result of a
a congressional act, the Revenue Act of
1971. It has as its goal the stimulation
of and expansion of exports.
Originally many bankers thought
DISCs would be of most value and use
to large city banks at the major ports
of entry into the United States, such
as Boston, New York, Philadelphia,
Portsmouth, Ft. Lauderdale, New Or
leans, Los Angeles, and San Francisco.
This has not been the actual result,
however. It is true that banks in those
areas have had more opportunity to
-i help finance exports and imports than
banks in the heartland of America.
* However, a surprising number of in
land banks are finding that their manu
facturing and agricultural customers
have interest in the DISC program.

Income Tax Deferred
It is for this reason that bankers
should be able to provide customers
with adequate information on the
topic. DISC is important to your cus
tomers and the U.S. because under it
federal income taxes will be deferred
on export profits as long as these
^profits are used and retained in the ex
port related activities of the domestic
firm.
Thus, many producers and manu
facturers in the U.S. who were content
to limit themselves to domestic pror duction and sales now recognize that
with DISC, higher profits can be
achieved by a stimulation of their ex

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Federal Reserve Bank of St. Louis

ports. In effect, under a DISC opera
tion the domestic company establishes
a subsidiary solely for the purchase of
goods from the manufacturer or other
manufacturers.
Through this separate corporation it
resells the products abroad. The com
pany may even do this on a commis
sion basis. It can lease or sublease
American property to foreigners. It
basically comprises a bookkeeping
transaction which spins off a profit
center solely attributable to exports.
The tax advantages are considerable
and fairly technical. For purposes here
we cannot go into great detail about
them.
Anyone interested in tax advantages
should consult his tax attorney or ac
countant.
No Tax Imposed
In a general sense, however, the
major factor is that there is no tax im
posed on either the parent firm or the
shareholders of the parent firm from
the profits earned by the DISC until
they are actually distributed.
Even then there are certain other
advantages. The shareholders of the
DISC’S corporation are receiving over
half the earnings currently whether or
not they are distributed. The remaining
half may be retained by the DISC, sub
ject to no shareholders liability and re
invested either in that or in ExportImport Bank obligations, or loaned to
producers in the U.S. for financing ex
port related activities.
This permits the parent company,
government agencies or other ex
porters to have an attractive source of

funds without the shareholders of the
DISC being taxed. The DISC may al
so purchase the export goods from its
parent under a special rule which per
mits it to earn the greater of 4% of
sales or 50% of combined income at
tributable to the manufacturer of the
sale of products through the DISC.
May Lend Earnings
Also, an additional profit equal to
some one-tenth of the export promo
tion expenses is carried into the profit
column without taxation. A DISC
may also lend the earnings which it has
retained to its parent company and still
not suffer a loss of the tax-deferred
status on this portion of its earnings,
provided these producers loans are
used to finance further exports.
It can be seen by the foregoing re
marks that there is a significant
potential profit and low taxes. There
is hardly a banker or a bank in the
United States of any consequence that
does not have a customer or two that
would benefit from the formation of
the DISC. It is so new, however, that
it may take some time for the knowl
edge of it to permeate the community.
Suggestion: One of the best sellers
of the U.S. Government Printing
Office is DISC Domestic International
Sales Corporation, A Handbook for
Exporters. For 40£ the Superintendant of Documents of the U.S.
Government Printing Office, Wash
ington, D. C., 20402, will provide you
D ISC . . .

( Turn to page 82, please)
N orthw estern

Banker,

August,

1972

How to Cut
a

KiteString
<
By GEORGE W. DENNIS
Vice President
Manufacturers Hanover Trust Company
New York, N.Y.
3. FRB, N.Y., receives $3,000
HE MORE sophisticated kiter — Trenton — $3,000 drawn by Baker.
4.
Baker deposits Abie’s check forcheck from FRB, Philly, and Charges
and the more dangerous one —
N.Y. bank’s Reserve account.
$3,000 in N.Y.
is the Check Kiter.
Day Three —
4. FRB, Philly, receives $3,000
This guy’s more sophisticated be
1.
FRB, N.Y., receives $2,000 check from FRB. N.Y., and Charges
cause he knows the check processing
-4
routine and he’s more dangerous be check from FRB, PHILLY, and Trenton’s Reserve account.
5. FRB, Philly, receives $4,000
cause of the amounts that can get in Charges it to Reserve account of N.Y.
check from Trenton and Credits Tren
bank.
volved.
ton’s Deferred account.
Somehow or other I can’t imagine
6. FRB, N.Y., receives $4,000
a banker being sleepy enough not to
check from N.Y. bank and Credits
recognize that something must be
N.Y. bank’s Deferred account.
amiss if a customer were to deposit say
7. Able deposits $5,000 check in
$25,000 in cash every day, but I’ve
Trenton drawn by Baker.
seen more than one check kiting
8. Baker deposits $5,000 check
scheme where a bank was on the short
drawn by Able.
end of half a million dollars when the
Day 5 is the critical day Able walks
string was cut.
into Trenton and asks the teller to cash
How The Kite Works
a check for $5,000.
How does a check kite work? In its
Now let’s see, he has — one and
simplest form, there are three par
two is three and three and three is six
ties —
and four is ten and five is fifteen —
The Kiter
minus two is $13,000.
The victimized bank
Of course, Baker does the same
And a com-plis-i-tor bank
thing.
Here’s how they operate:
They both fly to Miami where they y
Able Kiter opens an account at the
loll
on the beach ogling the pretty^
Trenton. National Bank with a cash de
maids in the brief bikinis!
posit of $1,000.
OK, now we know how to fly a
Baker Kiter (Abie’s brother) opens
2. FRB, Philly, receives $2,000 Check Kite. Just deposit worthless
an account with the Greater National
Bank of N.Y. with a cash deposit of check from FRB, N.Y., and Charges checks in your account and draw
it to Reserve account of Trenton bank. against them before they bounce.
$ 1, 000 .
Let me tell you that the case I cited
3. FRB, Philly, receives $3,000
This entitles each of them to a nice
new check book and without further check from Trenton and Credits Tren was a simplified version of a real life
case.
ton’s Deferred account.
ado, they go to work.
Can you visualize what it would
4. FRB, N.Y.,
receives $3,000
On Day One —
1.
Able deposits in the Trentoncheck from N.Y. bank and Credits look like if there were legitimate trans
actions going on at the same time as
Bank a $2,000 check drawn by Baker. N.Y. bank’s Deferred account.
the
Kite?
5.
Able
deposits
another
check
in
2.
Baker deposits in the New York
How do we cut the string?
Bank a $2,000 check drawn by Able. Trenton — $4,000 drawn by Baker.
First, it is essential that you have a
6. Baker deposits another of Abie’s
Shortly After the Sun Rises on Day
system for recording “uncollected"
checks; this one for $4,000.
Two —
funds” — the time that it takes for a
Day Four —
1.
FRB, Philadelphia, receives
1. Greater National Bank receives check to travel to the bank on which
$2,000 check from Trenton and
$2,000 check from FRB, N.Y., and it is drawn plus the time that it will
Credits Trenton’s Deferred account.
2.
FRB, New York, receives $2,000charges Baker’s account.
2. Trenton receives $2,000 check
check from N.Y. Bank and Credits
KITE STRING . . .
from FRB. Philly, and Charges Abie’s
NY’s Deferred account.
( Turn to page 54, please)
Able deposits another check in account.
Digitized for3.FRASER

https://fraser.stlouisfed.org
N o rth w e ste rn ! B a n k e r , A u g u s t ,
Federal Reserve Bank of St. Louis

1972

Life Insurance
Executives Defend
Private Pension System

A N o r t h w e s t e r n B a n k e r Survey

R A LP H

N A D ER

WEEKS, consumer advocate Ralph Nader
I NhasRECENT
attacked the private pension system with serious
charges and is reported as stating: “The private pension
system is one of the most comprehensive consumer frauds
that many Americans will encounter in their lifetime.”
He supports his statement with “facts and figures” such
as these:
1. At least one-half of all persons participating in pri
vate pension plans will not receive pension benefits
when they retire.
2. More than one-half of all persons who do receive
benefits will receive less than $1,000 per year.
3. The majority of pensions do not provide for benefits
for widows or widowers — or provide very limited
benefits.
4.
The vast $151 billion system — heavily subsidized by
an annual Federal tax subsidy of over $8 billion — is
hurting too many people unnecessarily and unfairly.
THE UNDERWRITERS REVIEW, a companion maga
zine of T he N orthwestern B anker which serves the in
surance industry throughout the midwest, contacted the
chief executive officers of several leading life insurance
companies and asked for their comments in response to

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

this charge to the commercial banking industry. The com
ments of these life insurance executives are presented here
for our banker readers:

H . G. A LLEN

President
The Bankers Life
lies Moines, loum
assertions, such as Mr. Nader’s, that “the
E XTREME
private pension system is one of the most com
prehensive consumer frauds that many Americans will en
counter in their lifetime” are not responsible statements.
The demagogic nature of such a statement obscures the
real issues.
Senator Jacob Javits has for many years been a lead
ing advocate of legislative changes to strengthen the priN orthw estem

B an ker,

August,

1972

28
vate pension system and minimize the particular points of
weakness in that system. He has been one of the sharpest
critics of the private pension system. Senator Javits in a
recent Senate speech regarding Mr. Nader’s comments said
such accusations are a “gross misrepresentation and a
great disservice to the thousands of business and labor
leaders and others who have poured years of hard effort
into improving and strengthening private pension plans.”
Mr. Nader’s generalization that at least one-half of
persons participating in private pension plans will not re
ceive pension benefits when they retire is a clear-cut
example of obscuring the issues. It is undoubtedly true
that persons age 16 to 25 who are nominally “covered”
under their employer’s pension plans, but most of whom
will move from their present jobs after a year or so of em
ployment, will not receive pensions from their present
employer.
It is definitely not true of persons age 60-64 who are
covered under their employers’ pension plans, because al
most 100% of such employees will receive pension bene
fit when they retire. This point was clearly made in a re
sponsible study published in 1971 by A. S. Hansen, Inc.,
a reputable firm of consulting actuaries.
Similar obscurity and confusion exist in Mr. Nader’s
other generalizations.

tirement. As we look at today’s inputs, the individual plans
we write show a pattern of about 25% of compensation
guaranteed together with substantial death benefits for the
widow. Within today’s framework, we think these current
plans offer good value for the funding of retirement.
We see a place for variable and guaranteed benefits
combined with death benefits for beneficiaries. It is my
opinion that we can do more with portable paid-up
policies that will fund benefits earned with multiple em
ployers. We think of private plans as valuable supplements
to the basic social security retirement benefit. We have no
present intention of being deterred by Mr. Nader or any
one else in our determination to promote the use of such
plans among small businesses and professional groups.
Thank you for the opportunity to respond. Obvious
ly, in times when the dollar is being treated as a short term
instrument, it has been harder to look good after a long
cycle funding period.

R . W . F R IE D N E R

President
Washington National Life
Insurance Company
Evanston, Illinois

FRANCIS E. FERGUSON
President
The Northwestern Mutual
Life Insurance Company
Milwaukee, W isconsin
COMPANY is a rather special situation, since
T HIS
we operate exclusively in the indiviudal policy field.
We are convinced that what we do in the area of qualified
plans is socially beneficial and offers good value to the em
ployer and employee alike. Our current pension payments
involve 10,700 checks a month for an average amount of
$106.00. We all wish there were more of them and that
their average size were greater, but the recipients proba
bly look forward to their arrival.
This information, like some of the figures provided
by Mr. Nader, looks only at the outputs of plans, most of
which were written many years ago. As I read Mr. Nader’s
statements, he is not focusing on today’s plans or the in
puts of today; he is criticizing the system as it was.
Basically, this was a management centered system.
These plans rested on a philosophical base that pensions
were to be paid to those who stayed. The funding took
terminations into consideration. Thus, as a group, these
plans were biased against vesting and portability. Often,
probably usually, the alternative to the pension plan
adopted was no pension plan at all. Early vesting of em
ployer contributions would have priced most such plans
out of the market.
In the meantime, the climate has changed. Public
policy and government regulations have moved us in the
direction of greater employer contributions and a
philosophy that this is deferred income to be paid after re
orth w este rn Banker, August,
DigitizedNfor
FRASER
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1972

MY VIEW the private pension system is playing an
I Never
increasing part in providing retirement benefits
to American workers.
Contrary to being a comprehensive consumer fraud
as alleged by Mr. Nader, the benefits provided by private
pension plans have increased dramatically over the past
20 years. In 1950, these plans covered 9.8 million workers x
with slightly less than one-half million workers receiving
pensions. At the end of 1970, 30.3 million workers were
covered and 4.7 million persons received pensions
amounting to $6.7 billion. Today, over 50% of the Ameri
can work force is covered by private pensions.
Insofar as benefits for widows or widowers are con
cerned, it must be recognized that almost every company *
is limited as to the amount of money whUh can be spent
on a pension plan. Priorities are established and once the
goal for retirement benefits for the employees is reached,
such additional benefits as disability income and a widow’s
benefit are provided. Until that time it must be recognized *
that it is the individual responsibility of the employee to
obtain personal insurance to guard against an untimely
death.
We, in the insurance industry, have an obligation to
point this out to both employers and employees and to
work together to fill this gap. We should also stress the ad
vantages of the private insured pension system — expert
administration by an insurance company, guaranteed an—
nuity feature, etc. — which provide the greatest protection
for employees.
I strongly feel that private pensions are a natural
outgrowth from our private enterprise system. The
abandonment of private pensions in favor of social security
would undoubtedly have an adverse effect on our,
economy.

DELUXE

PERSONALIZED CHECK DESIGNS

>■

SCENES
Scenic Americana
JAMES C. MORRISON

MARY A. MORRISON

1765 SHERIDAN DRIVE
YOUR CITY, U.S.A. »06

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YOUR CITY, U.S.A. 60618

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D E L U ^ % i t ( J H T a £ . S > U f e ’B a u lk
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JA M E S G . M O R R IS O N
1765 SHBRIDAN DRIVB
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1AMES C. MORRISON
1765 SHERIDAN DRIVE
YOUR CITY, U. S. A. 60618

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Federal Reserve Bank of St. Louis

SALES HDQTRS. • 3440 N. KEDZIE, CHICAG O , ILL. 60618
STRATEGICALLY LOCATED PLANTS FROM COAST TO COAST

Urge C hange In F ed G u idelin es
On P u rch ase o f B ank Stock
XTENSIVE revision of the Fed
eral Reserve Board’s guidelines for
use in approving formations of onebank holding companies was urged on
the Board last week by bankers and
banker groups.
The hearings were called after the
Board received complaints that its
guidelines had been applied by the
Reserve banks in
a “more restric
tive manner than
is desirable” and
that they result in
“u n d u e adverse
effects on t h e
transferability of
bank stock.”
E u g e n e H.
Adams, president
elect of the ABA,
told the Federal Reserve Board that,
“Realistically, we believe that in terms
of the realities of midwestern banking
structure and bank stock market con

ditions these guidelines effectively deny
the use of the one-bank device to the
majority of our nation’s smaller
banks.”
Mr. Adams challenged the guide
line that restricts the amount a hold
ing company can borrow to buy the
voting shares of a bank. He maintained
that the Federal Reserve should not
make blanket determinations of the
credit worthiness of all bank stock
purchasers, and contended that credit
worthiness should be decided on a
case-by-case basis by the lender.
“In our opinion, the decision as to
how much indebtedness a holding
company may incur belongs to the
lender and borrower, and must and
should be made in the marketplace.
We see no reason for treating this kind
of an extension of credit any differ
ently from any other,” said Mr.
Adams, who is also president of the
First National Bank of Denver.

STO P-LO O K-CO M PARE

He proposed that maximum loan
periods be extended to 15 years from
the present 10 years. “Again, we be
lieve that repayment provisions and
terms are a credit determination which
should be made by the lender and bor
rower in light of individual circum
stances,” Mr. Adams said.
Adams objected to a guideline limit
ing interest and amortization payments
to 50 per cent of the holding com
pany’s share of the bank’s after tax in
come. He said that other holding com
pany income should also be taken into
consideration, and that the portion of
bank earnings available for debt serv
ice should depend on the adequacy of
the bank’s capital.
He called for clarification and
elaboration of the guidelines requiring
a holding company to extend an
“equitable” offer to all shareholders
when seeking control of a bank, and
urged the Board to make it clear that
the guideline will not be applied retro
actively.
“We are concerned that it could
conceivably be interpreted as requir
ing a ‘tender offer’ and that a holding
company would be required to acquire
all of the shares of a bank tendered,”
said Adams. “We urge the Board to
clarify percentage of a bank’s shares
it will acquire.”

N ew C urrency V erifier

(It’s later than you think)

Saturday, October 7 —

Leave Minneapolis, #133Y at 3:25 P.M.; arrive
Dallas at 5:25 P.M. Round trip: $489.00 per person.
Sunday, October 8 — Leave Des Moines, #235Y at 8:00 A.M.; arrive Dallas
at 11:05 A.M. Round trip: $469 per person.

Above Including Extended Tour
Thursday, October 12 — Leave Dallas for extended tour to Mexico City (stay

at beautiful Camino Real Hotel 4 days) then to the new Beachside Plaza
International Hotel in Acapulco for 3 days.

Round Trip to Dallas for Convention Only
Saturday, October 7 —

Leave Minneapolis, #133Y at 3:25 P.M.; arrive
Dallas at 5:25 P.M.
Thursday, October 12 — Leave Dallas, #132Y at 12:35 P.M.; arrive Min
neapolis at 2:36 P.M. Round trip: $91.00 per person.
Sunday, October 8 — Leave Des Moines, #235Y at 8:00 A.M.; arrive Dallas
at 11:05 A.M.
Thursday, October 12 — Leave Dallas, #3 8 at 3:20 P.M.; arrive Kansas City
at 4:33 P.M. Leave Kansas City, #256 at 5:15 P.M.; arrive Des Moines
at 5:55 P.M. Round trip: $71.00 per person. For further information,
write or call:

TR A V EL,

INC. or OTTO

612 338-5667

Marquette National Bank

111 Marquette Avenue

B an ker,

PREUS

612 370-2167
c/o

N orthwestern

August,

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

Minneapolis, Minnesota 55480

1972

<
<

Special Deluxe Tour to A.B.A. 98th Annual Convention
Dallas, Texas, October 8-12
All Flights on Braniff International Airline

MARQUETTE SEDARD

The new Brandt 802 designed for
the vertification of incoming, outgoing
and in-house currency. The machine
is simple to operate with “counter
readout” and automatic “shut off”
when currency supply is depleted. It
is completely portable; weighs less than
24 pounds. The machine counts 300
bills a minute. Accuracy is assured by
a patented sensing system that acti
vates a red warning light if more than
one bill passes through the machine
on a single count. Smartly and con
veniently designed, this machine is at
tractively finished in soft, non-re
flecting Desert Tan color. For com
plete information write for Bulletin
BAC-811.

H o w would you like to tap
the investment know-how of a
$5.3 billion trust departm ent?
The Institutional Investment Service at
the Harris is now providing more than 200
bank trust departments with digests of
the financial and economic research pre
pared by Dr. Beryl Sprinkel and his staff to
guide our own trust department in man
aging $5.3 billion worth of trust assets.
IIS brings you regular, easy-to-read re
ports—complete with Buy/Sell/Hold
recommendations—on our list of 180 quality common stocks. You
can have as crisp or elaborate a review as you wish, depending on
whether you subscribe to our Mini-Service, Common Stock Service,
Abbreviated Service or Full Service. The cost is low, and payment
can be arranged on either a fee or balance basis.
If your trust department invests in common stocks at all, you owe
it to yourself to see an IIS presentation. To set it up, contact your
Harris banker, or call Jerry Jurs at 312/461-7612 or Fred Young at
312/461-7525. Or, write for a copy of our new IIS booklet.

HARRIS BANK P I
Harris Trust and Savings Bank j ~

111 West Monroe Street, Chicago, Illinois 60690. Organized as N. W. Harris & Co., 1882. Member F.D.I.C Federal Reserve System.

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Federal Reserve Bank of St. Louis

f-^ T ;S

”

N orthw estern

B an ker,

August,

1972

In su ran ce P lan A id s M u nicipals
HE securities of the nation’s local
T
governments have an excellent
record of payment. Nevertheless, the
market for the medium quality bonds
of smaller, lesser known public issuers
needs reinforcement, Frank C. Carr,
president of American Municipal Bond
Assurance Corporation, told those at
tending the annual meeting of the Na
tional Association of Counties in Mil
waukee.
The insurance/guaranty program
initiated last year by AMBAC is de
signed to fortify the market for medi
um quality bond issues of smaller
cities, counties, school districts and
other public agencies and to upgrade
these issues. AMBAC is a subsidiary
of MGIC Investment Corporation,
Milwaukee, whose subsidiaries are
major providers of residential and
commercial/industrial mortgage and
lease guarantees and other financial
services.
“Municipal bond insurance is now
regarded in the market not as a reflec
tion on an issuer which otherwise
might not have been able to sell its
bonds, but as a means by which alert
officialdom of smaller public agencies
can upgrade their bond issues, broad

AMBAC’s ability to serve this market,
Mr. Carr said. One is the increase in
AMBAC’s capital to $17,500,000
which makes possible a substantial increase in size of issue AMBAC can in
sure and fortifies the value of the in
surance/guaranty. AMBAC will in
sure municipal bond issues, as well as
tax secured issues, which meet its
credit standards for insurance, up to
$12 million par value.
The other is the elimination of ap
plication and original commitment
fees. This allows the local government
to apply for insurance on a new bond
issue and obtain a commitment with
out payment of fees. If the government
then decides to issue the bonds with
out insurance, no obligation results. If
the bonds are issued with insurance,
fees become payable at the time the
bonds are issued.

en their market and improve net in
7
terest cost,” Carr told his audience.
“Banks and investment bankers have
come to realize that AMBAC in
surance is not designed to make ‘good
issues out of bad issues.’ Rather, it is
<
conceived to make good issues better
and to afford small and medium size
public borrowers access to a larger and
improved market.”
Carr said this achieved the provi
sional AA rating assigned by Standard
v
and Poor’s to insured municipal issues
which otherwise would be lower rated.
»
This reduces interest cost and widens
the market, since banks, which buy
two-thirds of all new municipal bond
issues, prefer ratings of A or better for
the issues they purchase.
The AMBAC program has met
steadily increasing acceptance since its N ew D e lu x e C heck P lan t
inception, Mr. Carr said. In 1971, in
DeLuxe Check Printers, Inc. has
less than half a year of operation, it leased 15,000 square feet of office and
issued policies in the amount of ap manufacturing space in the Springfield,
proximately $414 million, in the first Massachusetts area to be used for
quarter of 1972 it issued policies in the bank-check printing operations.
amount of some $1214 million and in
It is expected that the Springfield <
the second quarter of this year it has plant will be ready by early October
issued policies in the amount of ap to serve banks in Western Massachu
proximately $3034 million.
setts, Vermont and other areas best
Two recent developments strengthen served from the new location.

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YOUR DEPOSITS
W ITH

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FIRST SECURITY BANK & TRUST
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Federal Reserve Bank of St. Louis

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C ity, Io w a
K laus,

President

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Just likeTalcott a n d banks.”
Your bank and Talcott—a perfect match.
Instead of a straight “ No” to a potentially
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“ Talcott” and know you’ll be able to say
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Federal Reserve Bank of St. Louis

N orthw estern

B an ker,

August,

1972

M ercan tile T ru st H osts B an kers a t B a seb a ll P a r ty

SEVERAL HUNDRED bankers and th e ir wives from Illinois, Iowa, M issouri and other surrounding states attended the 21 st Annual
Baseball Party held by the M ercantile T rust Company in St. Louis. Bankers attended the “ Bull Pen Session” at S tau ffer’s River
fro n t Inn during the afternoon, where they were welcomed by Jam es A. Sm ith, v. p. in charge of M ercantile’s correspondent bank
division. Addressing the business session were Donald E. Lasater, chm n. of M ercantile; Daniel H. Gray, senior staff consultant,
A rth u r D. Little, Inc., Cambridge, Mass., and Donald P. Jacobs, chm n. finance dept., N orthw estern University, Evanston, III., who
was co-chmn. of the P resident’s Com m ission on Financial S tructure and Regulation (H u n t Com m ission). The m eeting was held on
two separate days to accom m odate guests from d iffe re nt geographical areas. Following a buffet dinner, everyone adjourned across
the street to Busch Stadium where the St. Louis Cardinals obliged by w inning th e ir games both nights. Pictured above, le ft to
right, are: LEFT— Mr. Sm ith, Mr. Gray, Mr. Jacobs and Mr. Lasater. RIGHT— James J. Reedy, v.p. fo r lllinois-low a division, Mer
cantile Trust, and Mrs. Reedy, w ith Charles H. Walsh, pres., and Richard J. Nachazel, v.p., both w ith Farmers & M erchants B&T,
Burlington. Pictured below are: LEFT— Jerald L. Fleschner, corr. bk. off. w ith M ercantile, and Mrs. Fleschner; Mrs. Ebersole and Ed
Ebersole, t.o. & dir., State Central Savings, Keokuk, la., and Robert Berg, v.p., Iowa State B&T, Fairfield, la. RIGHT— Lawrence F.
Gallo, corr. bk. off. w ith M ercantile, and Mrs. Gallo; Guy Cheatham, pres., Sheridan Bank of Peoria, and Mrs. Cheatham; W. K.
Crawford, pres., Murphy-W all State B&T, Pinckneyville, III., and Mrs. Mary F. Ringel, a.c., Sheridan Bank of Peoria.

FR B L im its H o ld in g
F irm s P ro p erty
M an agem en t
The Federal Reserve Board has de
cided that property management serv
ices are not a permissible activity for
bank holding companies — at least to
the full extent originally proposed.
However, the FRB said its action did
not limit the authority presently con
ferred by law or regulation on banks
and bank holding companies to en
gage in property management with re
spect to properties held in a fiduciary
capacity; properties owned by the
BHC or its subsidiaries for conducting
its own bank and related operations;
N orthw estern

Banker, August,

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

1972

and properties acquired as a result of
a default on a loan.
Meanwhile, FRB has received a
recommendation that BHC's be per
mitted to furnish courier services, sub
ject to certain restrictions, but not
. . . for the present . . . armored car
services.

O ffers L iability C overage
New York Guaranty Corporation, a
subsidiary of MGIC Investment Cor
poration, has announced the nation
wide availability of a program of per
sonal liability insurance for directors
and officers of commercial banks. Sub
sidiaries of MGIC Investment Cor

poration, a publicly-held NYSE listed
corporation, specialize in financial
guarantees and presently serve the
banking industry through residential
and commercial lease guarantee in
surance and mobile home credit in
surance.
This new program will be made
available for smaller and moderate
sized banks with deposits over $2 mil
lion but not exceeding $100 million.

O p p o se FDIC Increase
The American Bankers Association
has opposed a bill that would raise
deposit insurance coverage to 100 per
cent on government funds.

N ew BAI A p p o in tm en ts
Five new district directors and
twenty-five new state directors of Bank
Administration Institute have been an
nounced by BAI President, Charles E.
Arner, senior vice president, First Na
V tional Bank of St. Paul, Minnesota.
New district directors and states fall
» ing under their jurisdiction in the
NORTHWESTERN BANKER area
include:
District Five — C. Brown Allen,
Vice President & Auditor, Kentucky
Trust Company, Louisville, Kentucky,
(Illinois, Indiana, Kentucky, Michi
gan, Ohio).
District Seven — Richard C. Ken
nedy, Vice President, The American
National Bank of Denver, (Colorado,
Kansas, Nebraska, New Mexico, Wyo
ming, Missouri).
District Nine — Eugene F. Nelson,
Vice President & Auditor, Bank of the
West, Bellevue, Washington, (Alaska,
Idaho, Montana, Oregon, Washing
ton).
The following state directors have
been named to two-year terms:
Colorado
Mr. William L. Scoggins,
Auditor,
Greeley National Bank,
Greeley, Colorado
Idaho
Mr. Rex Betts,
Auditor,
Idaho First National Bank,
Boise, Idaho.
Illinois
Richard E. Nylander,
(S President,
First National Bank,
A Northbrook, Illinois.
Nebraska
Eugene W. Bortz,
President,
Bank of Panama,
Panama, Nebraska.
Oregon
Nadine Bennett,
Supervisor,
U. S. National Bank of Oregon,
Eugene, Oregon.
Washington
William E. Sylvester,
Senior Vice President,
Old National Bank of Washington,
Spokane, Washington.
Wyoming
Howard J. Baker,
Assistant Vice President,
Jackson State Bank,
Jackson, Wyoming.

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

T H E M O N EY
M ARKET
A m o n th ly r e p o rt fro m th e M oney M arket C en ter o f
The F irst N ational Bank o f Saint Paul. A service fo r all in ves
to rs. For p erso n a l h e lp call d ir e c t 6 1 2 - 2 9 1 - 5 6 5 9 .

By RONALD OLSON

Vice President, Securities U nderwriting and Investm ent Services Division
F u ll serv ice is a fa m ilia r p h ra s e to
a ll of us in th e b a n k in g and finance
business. Our
t h o u g h t for our
M oney M a rk e t col
um n th is m o n th is
to rev iew w ith you
ju st how much
“fu ll se rv ic e ” o u r
Investment Ser
vices a n d S e c u ritie s
U n d e rw r itin g D e
p a rtm e n t offers you
RONALD OLSON
as a b a n k ,c o r p o r a
tio n or in d iv id u al c u sto m er.
■ F ir s t an d fo re m o st is a sta ff of
officers, in v e s tm e n t c o n su lta n ts, secu
rity tr a d e r s an d b ack office p erso n n e l
to ta lin g 65, w ho tr u ly “ w a n t you to
do w e ll” and, in th e p ro cess, m ak e a
p ro fit on y o u r in v e stm e n ts.
■ O u r In v e s tm e n t D e p a rtm e n t
m ak es av a ila b le to y o u —f o r p u rc h a se s
an d sales, on a p e rm a n e n t o r d a y -to d ay b a sis — a ll b a n k -elig ib le in v e s t
m e n t se c u ritie s.
T h is inclu d es T re a s u ry B ills on a
su b sc rip tio n b a sis o r in th e open m a r
k e t. (W e w ill even a s s is t you in .sub
m ittin g y o u r TT & L su b sc rip tio n s.)
W e also m a k e sa m e -d a y m a rk e ts in all
g o v e rn m e n t n o tes a n d bonds, th e re b y
e lim in a tin g th e co st to you of o ne-day
d elays.
■ N e x t, w e h av e g o v e rn m e n t a g e n
cy bonds, in clu d in g th e n ew er G NM A
p a ss -th ro u g h s w ith m o n th ly p a y m e n ts.
A n added fe a tu re fo r c u sto m e rs who
have m a tu rin g ag en cies an d o th e r se
c u ritie s is t h a t each c u sto m e r receiv es
tw o n o tices — one w ritte n an d th e
s e c o n d a p e r s o n a l p h o n e c a ll — so
m oney d o esn ’t w ind up u n -in v ested .
■ C om m ercial P a p e r is a v a ila b le —•
e ith e r p rim e n am es o r local com panies
t h a t w ould c a rr y o u r le tte r of cre d it.
■ S eco n d ary N e g o tia b le CD ’s a re
offered on m a n y of th e m a jo r b an k s.
T his is a ra p id ly g ro w in g in v e stm e n t
vehicle in o u r u p p e r m id w est.
■ A new in v e s tm e n t in s tru m e n t,
p a rtic ip a tio n s in F a rm e rs H om e A d
m in is tra tio n L o an s, a re offered on a
p e rm a n e n t or d a y -to -d a y b asis. J u s t
a n o th e r w ay to keep y o u r sh o rt-te rm
m oney w o rk in g .
■ U p -to -th e -m in u te F e d e ra l F u n d s
m a rk e ts a re m a in ta in e d d aily fo r b o th
p u rc h a se s an d sales.
■ M unicipal bonds (o u r sp e c ia lty
a s one of th e la r g e s t d e a le r an d new issu e m a n a g e rs in th is a re a ) inclu d e:
1. G o v ern m en t-G u a ra n teed P ublic
H ousing A uthority N otes.
2. S h o r t-te r m m u n ic ip a l n o te s —
either ou trigh t purchase or w ith
a “p u t” option.

3. R e g u la r n ew is s u e s on u p p er
m idw est bonds and a grow ing
a v a ila b ilit y o f n a tio n a l b onds
through our increased diversifica
tion w ith national underw riting
syndicates.
■ S a fe k e e p in g o f se c u ritie s a t m in
im al co st — g u a ra n te e s p ro te c tio n and
p ro p e r co llection of p rin c ip a l and in
te r e s t w hen due.
■ S e c u rity p ro c e ssin g fo r sales and
p u rc h a se s— p a y m e n t a g a in s t good de
liv e ry an d d e liv ery a g a in s t collected
fu n d s only. (T h is w as d iscussed in th is
colum n la s t m o n th by D ick P rin g le ,
M a n a g e r of o u r S e c u ritie s C learance
D e p a rtm e n t.)
■ E fficient w ire tr a n s f e r of fu n d s
th r o u g h o u t t h e U n ite d S t a t e s a n d
fo re ig n b a n k -se rv e d c o u n tries.
■ S tock an d bond tr a d in g as a g e n t
fo r b a n k o r acco u n t c u sto m er. A lso,
som e th ird -m a rk e t tr a d in g c a p ab ilities,
w h e re w e can o fte n save you m oney.
■ B ond In v e s tm e n t P ro g ra m — curx-ently b ein g used by som e 150 b an k s
to p ro v id e:
1. M anagem ent reports to a ssist in
decision-m aking regarding pur
chases or sales.
2. A ccounting and transaction re
ports and resu ltan t balances.
3. F u ll accrual reports.
4. T otal picture of secu rities owned,
ratin gs, m aturities and consequent
appreciation or depreciation.
■ Secux-ity tr a d in g p ro g i'am — com
p u te riz e d p ro g ra m f o r e sta b lish in g
p ro fits or losses a n d re s tru c tu rin g of
m a tu ritie s a n d /o r yields.
■ M ailin g s to c u sto m e rs and p ro s
p e c t s : q u o te s h e e t s on g o v e r n m e n t
bonds, n o te s an d Treasux-y B ills (tw ice
w e e k ly ); c u rre n t o fferin g s on m u n ici
p al bonds an d public n o te s (w e e k ly );
co m p lete m o n ey max-ket quote sh e e t
(w e e k ly ).
Fix-st of S a in t P a u l h a n d les secux’itie s in excess of a billion d o llars a
m o n th an d h as e sta b lish e d com m uni
ca tio n s an d ra p p o r t w ith all of th e
m a jo r se c u ritie s d e a le rs in th e U n ited
S ta te s.
M ost im p o rta n t, w e sex-vice w h a t w e
sell, u n lik e m a n y w ho sell and fox-get.
T h is is one of th e m a in re aso n s I
know w e can do a n ex cellen t job w ith
a n y in v e s tm e n t re q u ire m e n t o r s itu a
tio n you as a b an k , corpox-ation o r in
div id u al m ig h t e n co u n te r. A ll of xxs
in th e In v e s tm e n t S erv ices and Secu
ritie s U n d e rw ritin g D e p a rtm e n t w a n t
an d can a s s is t you to do w ell. T hrow
u s a c h a l l e n g e . My n u m b e r is
612 -291-5662.
N orthw estern

B anker,

August,

1972

B ank P rom otion s a n d C hanges
1 3 ROMOTIONS and changes have
■ been announced by the following
metropolitan banks and bank groups:
Bank of America, San Francisco:
President A. W. Clausen has an
nounced the appointment of Kendel A.
Chance as cashier of the bank.
Mr. C hance,
who has been
with B a n k of
America s i n c e
1936, was former
ly vice president
in the cashier’s
department.
He
will continue to
work closely with
#
C. H. BaumhefK. A. CHANCE
ner, vice chair
man of the board and the bank’s senior
financial officer.
The promotions of Bruce R. Bleeker
and Barry T. Galvin to vice president
in the national division were also an
nounced. Mr. Bleeker joined the bank
a year ago after seven years with banks
on the East Coast. Mr. Galvin joined
the bank in 1968 after eight years with
the Agency for International Develop
ment in Washington, D.C., Peru and
Brazil.
In the bank’s legal department, El
don C. Parr was appointed vice presi
dent and assistant general counsel. Mr.
Parr, who joined the bank in 1954, will
serve as Northern California adminis
trative head of the legal department.
Also in the legal department, C.
Thorne Corse was advanced to vice
president and senior counsel, and Fred
C. Hoffman was promoted to senior
counsel. Mr. Corse, who also joined
the bank in 1954, is a graduate of Yale
University. Mr. Hoffman, a graduate
of California at Berkeley, joined the
bank staff five years ago.

Bankers Trust Company, New
York: Vernon E. Jordan, Jr., has been
elected to the board of directors of the
bank., He is executive director of the
Urban League.
Central National Bank, Chicago:
Larry L. McDonald recently joined
Central National Bank, Chicago, as a
vice
president
in the agricultural
banking depart
ment, announced
Frank E. Bauder,
chairman of the
bank.
Mr. McDonald
was formerly with
the El C e n t r o
branch of t h e
L. L. M c D o n a l d
Security
Pacific
National Bank where he served as
assistant vice president. His major ac
tivities were directed toward com
mercial lending, with specialization in
agriculture.
The Chase Manhattan Bank, New
York: James J. O’Donnell and Mario
Capra have been promoted to vice
president in the administrations group
and operations department respective
lyMr. O’Donnell is the purchasing di
rector for Chase Manhattan. He joined
the bank in 1959 as a systems analyst.
In 1961 he became an employment
representative for the personnel admin
istration and a personnel assistant for
the central operations group two years
later. In 1964 he was appointed as as
sistant treasurer of banking operations
and promoted to second vice president
in purchasing in 1968.
Mr. Capra’s group is responsible for
the processing of almost two million
deposit checks that are cleared through
the bank daily. He joined the Chase

BANKERS USE OUR NEW REDICASH HOSPITAL
INCOME PLAN
$100-$150 or $200 PER WEEK GTD. RENEWABLE
FOR
INDIVIDUAL — MARRIED COUPLE — FAMILY
WRITE FOR ATTRACTIVE RATES

AM ERICAN

BEN EFIT

IN SURAN CE

CO.

FOUNDED 1905

2550 Pillsbury Ave.

Mpls. 55404

Tel. 612— 823-7237

NO AG EN T W ILL C A LL UNLESS REQUESTED

N orthw estern

B an ker, August,

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

79 7 2

National Bank (now Chase Manhat
tan) in 1928. He became the supervi
sor when the methods research depart
ment was organized in 1953. Three
years later he was appointed an assist
ant treasurer and was promoted to sec
ond vice president in 1961.
City National Bank & Trust Co.,
Kansas City: Following a recent board
meeting, R. Crosby Kemper, Jr., chair
man, announced the promotion of
three officers and the election of two
new officers.
Thaine T. Anderson and Eugene J.
Calcara were promoted to assistant
vice president. Mr. Anderson is in the
metropolitan area group of the busi
ness development department. Mr.
Calcara, who has been with the bank
since 1947, is in the installment loan
division.
In the trust department, John F.
Thomas was promoted to senior mu
tual funds operations officer. He was
elected assistant trust operations officer
in 1968 and trust operations officer in
1970. Michael T. Dowd was elected
mutual funds operations officer. He
has been with the bank since 1967.
In the electronic data processing di
vision, Gary D. Horne was elected pro
gramming officer. He joined the bank
in 1966.
It was also announced that Robert
H. Lange, president of the R. B. Jones
Corporation, has been appointed an
advisory director of the bank. He has
been associated with R. B. Jones since
1950. It is the seventh largest insur
ance brokerage firm in the United
States.
Federal Reserve Bank of Chicago:
Arthur J. Friga_ _ _
ard, senior repre
sentative of the
bank, has taken
early retirement
after 35 years of
service. He has
represented t h e
bank in Iowa
since 1960, and
was also assigned
A . J . F R IG A A R D
to Wisconsin in
1965.
First Bank System, Minneapolis:
Larry A. Randall has been appointed
personnel officer, personnel-manpower
planning division. He was formerly
with Control Data Corporation, Min
neapolis, where he was a manpower
development administrator.
First National Bank, Si. Louis:
Three officers have been promoted and

Security believes bank equipment
manufacturers have held things up
long enough. So we've initiated a
unique program to deliver the equip
ment we make in 30 to 60 days,
instead of the industry’s “normal”
4-6 months. To do it, we have estab
lished regional warehouses that stock
the kind of products other manufac
turers make you wait for.
And, that’s just one of our firsts.
We also originated the Free Safe

Deposit Box Program. Completely
stainless steel vault doors with a builtin emergency vault ventilator. The
aluminum safe deposit box. And a
coordinated service program from the
same national netw ork of experi
enced, independent dealers you buy
from. So you get sales and service
from a single, reliable source in your
local area.
Security offers all this in addition
to a unique, full product line that

includes everything from vault doors
to remote banking systems. Unique
because Security’s products have
built-in extras you’d normally pay
extra for. Except our extras are free.
Write today for Security’s com
plete product/service information
package. We’re out to give you exact
ly what you want, when you want it.
secuR uyi

CORPORflTIOm

1202 McGaw Avenue
Santa Ana, Calif. 92705
(714) 549-0394.

This bank was held up
6 months before it opened.

m m te

OF YOUR

N EW B A N K
Ismm
Wet*

mm*

,* -9*'

'4t.

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

one staff member was elected an officer
of the bank.
Robert C. Schmidt, Jr., commercial
banking officer, Roger E. Kahn, data
processing officer, and O. William
Wing, Jr., manager, credit department,
were promoted to assistant vice presi
dents, and Barbara Ann Vandivort,
electronic data processing department,
was elected a data processing officer.
Mr. Schmidt joined First National
in 1967, and was elected commercial
banking officer in 1970. He is assigned
to commercial banking Division III,
which includes Eastern national ac
counts.
Mr. Kahn has been with the bank
since 1967, and was elected data proc
essing officer in 1969.
Mr. Wing, who has managed the
bank’s credit department since 1970,
has been with the bank since 1969.
Miss Vandivort is a project systems
analyst. She joined the bank in 1965
as a programmer in the systems de
partment.
First National City Bank, New
York: Five vice presidents have re
cently been named in various depart
ments.
M. Allyn Gallup, Jr., and John K.
Hammes were promoted in the corpo

rate banking group. Mr. Gallup is a
unit head in the information systems
and electronics department, and Mr.
Hammes is in charge of engineering
in the metals and mining department.
Henry R. Brenner was promoted
and is in charge of developing person
nel programs and providing personnel
consulting services. He joined the bank
only recently, and was formerly with
Xerox, Rochester, N.Y.
Thomas C. Dittrich, who heads the
credit review department in the comp
trollers division, was also elected vice
president. He has been with the bank
26 years and has also served as an ac
countant and assistant comptroller in
the credit review department.
Also promoted was Serge Bellanger,
who is in charge of world corporate
relations for Europe in the European
division of the international banking
group. He is a native of France and
joined the bank in 1965 in the bank’s
Paris branch.
First Wisconsin National Bank, Mil
waukee: The election of Neil Johnston
as senior vice president has been an
nounced.
Mr. Johnston, formerly senior vice
president and treasurer of Employers
Insurance of Wausau, Wis., will head

the investment division upon the re
tirement in December of Edwin J.
Wigdale, senior vice president.
It was also announced that H. James
Sceales, senior vice president, was
given the additional title of cashier.
Mr. Sceales is also responsible for the
credit policy of the credit division and
credit review.
Harris Trust & Savings Bank, Chi
cago: It was announced that Senior
Vice President Lambert W. Bredehoft
has become head of the bank’s interna
tional banking group. This includes the
Chicago division, London branch, and
Harris Bank International Corp. in
New York, an Edge Act subsidiary.
Mr. Bredehoft was formerly in
charge of the United States group. He
has been succeeded in that post by Ed
ward K. Banker, vice president. Mr.
Banker was previously in charge of Di
vision 7 of the U.S. group, which cov
ers businesses and banks in a 28-state
area.
Forbes M. Taylor has been named
to head Division 7. Mr. Taylor, a vice
president, will head the division that
includes the midwestern states of Ar
kansas, Kansas and Nebraska.
LaSalle National Bank, Chicago:
The promotion of five officers and the
election of four new officers has been
announced by Milton F. Darr, Jr.,
chairman, and Frank G. Price, presi
dent.

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8900 M an ch ester Road

N o r for
t h wFRASER
este rn B an ker, August,
Digitized
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1972

•

S t. Louis, M isso u ri 63144

E. P. M R O Z

J . L. W O O D W O R T H

Named vice presidents were Eugene
P. Mroz in the operations group and
John L. Woodworth in the commer
cial loan division.
Three assistant vice presidents were
named. They are: Lee P. Gubbins,
commercial loan division, and George
E. Brown and Ronald J. Stammer in
the operations group.
The new officers are: Frank E.
Baird, marketing officer, William H.
Cole, training officer in the personnel
department, and James R. Daly and
Henry J. Kaliszewski, operations offi
cers.
Manufacturers Hanover Trust, New
York: Paul J. Hanna has been elected
senior executive vice president of Man-

ufacturer’s Han
over Corp., the
bank’s p a r e n t
company.
Mr. Hanna was
formerly se n io r
vice president in
charge of Region
I of the bank’s
national division.
In his new post he
will assume re-

J. W . CH ERRY

J . J. S U L L IV A N

sponsibility for planning and imple
menting the holding company’s upstate
banking expansion and will have direct
supervision of those entities as they are
formed or acquired.
James W. Cherry and John J. Sulli
van were named senior vice presidents
in the national division. Mr. Cherry
becomes responsible for Region IV,
covering much of the Southeastern
states, and Mr. Sullivan succeeds Mr.
Hanna as head of Region I, covering
New England and parts of New York,
Pennsylvania and New Jersey.

S u p e r v iso r ’s E d u cation al
P la n
The board of directors of the Con
ference of State Bank Supervisors has
adopted an educational program de
signed to assist outstanding state bank
examining personnel in preparing
themselves for assumption of top level
responsibilities in banking depart
ments.
“Candidates for this program will
be nominated by their respective State
bank supervisors using nomination
forms provided by CSBS.
Two candidates will be selected each
year to attend one of the many avail
able advanced banking schools which
have three year curriculums.

Which
way 'liiii1^
will the
economic
winds
blow?

jm,

No matter which way they blow, experience shows there
are some things you can count on . . .
Like B. C. Ziegler and Company institutional bonds.
Since 1913, we have underwritten $1.3 billion in
institutional financing, with never a default in principal
or interest.
Our issues offer a wide choice of serial maturities,
from one to fifteen years. Current yields are up to 8%.
And interim paper is available from 30 days to 9 months.
Sound, secure investments like these belong in the
portfolios of your bank, and your bank's customers.
For our latest offerings, write or telephone collect.4
Offices in leading cities, coast to coast.

$ 4 7 B illio n C on su m er
C redit
r

Commercial banks had more than
$47 billion in consumer credit out
standing as of May 1, making them the
nation’s instalment lending leaders, an
American Bankers Association Offi
cial reported.
N orthwestern

Banker,

August,

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Federal Reserve Bank of St. Louis

1972

B. C. ZIEGLER and COMPANY
West Bend, W isconsin 53095 • Phone (414) 334-5521

Creative Financing for America's Hospitals

The profitable business of accounts
receivable financing.
If your correspondents aren’t helping
you with it, it could be costing you
plenty.
At Exchange National Bank, we offer all the correspondent banking services you’re
used to.
We offer you two of the most experienced representatives in the Midwest:
Vice Presidents Ed Delaney and Lou Hanson.
But more than that, we can show you how to profit from high return growth areas.
Such as accounts receivable financing. Other banks, in the search for additional business,
have suddenly “discovered” accounts receivable financing.
Exchange National Bank has been doing it since the 1920’s. And doing it so well that we
have over $40 million in lines outstanding with retailers, distributors, manufacturers,
large and small.
To find out what we can do for you, call Ed Delaney or Lou Hanson collect.

M Exchange
National Bank
E xcha n g e N a tional B a n k

C h ic a g o

La Salle and Adams, Chicago, Illinois 60690
Phone: (312) 332-5000; M ember F.D.I.C.

N orthw estern

Banker, August,

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Federal Reserve Bank of St. Louis

1972

Illinois
NEWS
J O H N F. M cK N IG H T P r e s id e n t

O a k P a rk

R O B ER T C. SC H R IM P LE E x e c . V . P. C h ic a g o

C hicago B an k er W ill H ead
E lg in N a tio n a l B ank
Robert P. Abate has been named
president and chief executive officer of
the Elgin National Bank.
Mr. Abate, who
also becomes a
major sharehold> er of the $30 mil
lion bank, was
group vice presid e n t of t h e
American Nation
al Bank & Trust
Co., Chicago, be
fore joining the
bank.
A nationally recognized authority on
installment financing and education
loans, Mr. Abate has been tapped by
both Presidents Lyndon Johnson and
Richard Nixon to serve in an advisory
capacity to the U.S. Office of Educa
tion. He also has served on the advisory
> committee to the Illinois State Scholar
ship Commission on guaranteed stu> dent loans.
A graduate of DePaul University,
Chicago, he received his MBA from the
* University of Chicago. After spending
11 years with General Finance, he
joined the American National Bank in
a 1961 as manager of their industrial di
vision. In 1962 he was promoted to
group vice president. In addition, he
r headed the bank’s marketing division.

T w o O fficers N am ed
William T. Karrow and William E.
Horn have been promoted to assistant
cashiers at the Bank of Naperville.
Mr. Karrow is a member of the cus~ tomer service and marketing depart
ments. He joined the staff a year ago
after serving as an instructor in busi** ness administration at Dana College,
y Blair,7 Nebr.
Mr. Horn, who has been with the
t bank for two years, is in the install
ment loan department.
1 It was also announced that Paul A.
r Hartman and Dale N. Litcher have
joined the bank’s commercial loan de

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Federal Reserve Bank of St. Louis

partment. Mr. Hartman was formerly
a bank examiner in the Chicago area
for the FDIC, and Mr. Litcher was
with Percy Wilson Mortgage and Fi
nance Co., Chicago.

R em o d el B ank o f E lm h u rst
An extensive interior and exterior
remodeling project is currently taking
place at the Bank of Elmhurst. When
completed, the project will double the
size of the main lobby and add new of
fices on the lower level of the building.
President William T. Giova noted
the bank’s rapid growth as a factor in
the expansion. Total assets have grown
from $10.6 million at the end of last
year to $14 million at the present time.
The bank recently conducted a third
anniversary open house.

B lu e Islan d B ank N am es
D e v e lo p m e n t O fficer
Richard T. Wojcik, president, Coun
ty Bank and Trust Company, Blue Is
land, has announced the appointment
of John L. Slager
as business devel
opment officer.
Mr. Slager has
been with House
hold Finance for
26 years in con
sumer credit and
as new business
supervisor.
He
has been ac
J . L. SLA G ER
tive in the de
velopment of new business in Illinois,
Indiana, Wisconsin, Minnesota, Texas,
Florida and Georgia.

P u llm a n B ank & T ru st
H old s C orporate S em in a r
A seminar sponsored by Pullman
Bank & Trust Co., Chicago, was held
recently at Olympia Fields Country
Club. The topic of the seminar was
“Problems of Corporate Ownership
Changes,” and was attended by cor
porate and business executives from
throughout the Chicago area.
The purpose of the meeting was to
point out the problems relating to the

transfer of ownership or the disability
of the owner of closely held businesses
and how these problems can be solved
through the use of certain insurance
programs.
Presiding over the meeting was
Frank LeGere, CLU, who is currently
working with the Pullman Agency,
Inc., as financial consultant. He has
been associated with the insurance
business for over 16 years and has
worked with securities for over 10
years. He was assisted at the seminar
by William Boas, an employee of Con
tinental National American who has
worked closely with Mr. LeGere in his
capacity as financial consultant.

N a m ed V P at P eo ria
Lester A. Kassing, president, Jeffer
son Trust & Savings Bank, Peoria, has
announced the election of Thomas C.
Biever as vice
president, invest
ments. Mr, Biever
will supervise in
vestment strategy
and trust portfo
lio management.
Mr. Biever was
formerly with the
F i r s t National
Bank of Barring
T. C. B IEV ER
ton, where he had
similar responsibilities.
He is a graduate of the University
of Notre Dame and holds an MBA de
gree in investment finance from Loy
ola University of Chicago.

B ank S p o n so rs S tu d en t L oan
F u n d at N ew U n iv ersity
A short-term student loan fund has
been provided as a public service by
Matteson-Richton Bank, Matteson, to
the new Governors State University.
President James B. Lund of MattesonRichton Bank recently presented a
check for the non-interest bearing loan
of $10,000 to Richard S. Allen, co
ordinator of financial aids at the uni
versity, and William E. Engbretson,
president of the school.
The loan fund will be administered
by the university’s Office of Student
Financial Aid. It will be returned to
the bank after seven years when insti
tutional size will be fully established.
Mr. Allen said the short-term loans
will primarily assist students who are
heads of households to help stabilize
their financial situation while they at
tend the university. The loans will not
exceed $300 per student.
N orthw estern

B an ker, August,

1972

Illinois N ew s

P lan E lm h u rst R em o d elin g P ro je ct

Mrs. Norton has recently graduated
from the Stonier Graduate School of
Banking at Rutgers in New Jersey. Al
so a graduate with honors from The
American Institute of Banking in 1969,
Mrs. Norton is a member of the As
sociation of Chicago Bank Women.
She has been with Oak Park Trust for
over 10 years.
Mr. Rogers joined the bank in
March. He holds a Bachelor of Science
degree from Purdue University and a
J. D. degree from DePaul University.
He is a member of the Illinois and
Chicago Bar Associations.

B reak G round fo r N ew
B ank in B o lin g b ro o k

ARCHITECT’S drawing shows how the Bank of Elm hurst w ill look afte r expansion and
rem odeling project is com pleted.

G ro u n d b rea k in g H eld
F or N ew A d d iso n B ank
A groundbreaking ceremony was
held recently at the site of the pro
posed First Security Bank of Addison.
In addition to bank officials, several
local officials from the Addison, Lom
bard and Villa Park areas took part
in the ceremony.
The new bank will have a 3,500
square-foot building on two levels with
modern pneumatic tube drive-up facili
ties, two vaults and parking. It is lo
cated at the corner of Westwood and
North Avenue in Addison. Sundene
Construction Co. of Glen Ellyn is the
contractor.
William T. Giova is president of the
new bank. Mr. Giova is also president
of the Bank of Elmhurst.

A m algam ated N am es V P
Lewis T. Stein has joined the staff
of Amalgamated Trust & Savings Bank
of Chicago as vice president for com
mercial business
development, ac
cording to Eugene
P. Heytow, presi
dent.
Mr. Stein was
formerly with the
Exchange Nation
al Bank, Chicago,
in a similar posi
tion for f o u r
I . T. STEIN
years. Prior to
that he was with Allied Radio Corpo
ration.
Mr. Stein is a graduate of North
western University’s business school.
n ofor
r t h FRASER
w e s te rn B an ker, August,
Digitized
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Federal Reserve Bank of St. Louis

1972

He has served as associate general
chairman of the Jewish United Fund,
and is a member of the American In
stitute of Banking.

O fficer N am ed at B ank
O f C om m erce and Indu stry
President Richard P. Larsen of the
new Bank of Commerce and Industry
has announced the appointment of
Charles Peppi as assistant vice presi
dent.
Mr. Peppi will assist customers with
banking problems, open accounts and
represent the bank at community or
ganization meetings and civic func
tions.
Prior to joining the bank, Mr. Peppi
was an assistant cashier with the
Columbia National Bank of Chicago.
Earlier, he held a variety of positions
at Pioneer Trust & Savings Bank and
Chicago National Bank, now part of
Harris Trust & Savings Bank.

N am e V P at Oak Park
Following a recent meeting of the
board of directors of Oak Park Trust
and Savings Bank, Wallis Austin, board
c h a i r m a n an
nounced the pro
motion of Sophia
R. Norton to vice
president a n d
head of the cus
tomer investment
service d e p a r t ment.
Jack A. Rogers
was named assist
ant trust officer.

Groundbreaking ceremonies were
held recently in Bolingbrook for the
new Heritage Bank. Attending the
ceremony were bank officials, con
struction officials, and local business
men.
The building is being constructed by
Egyptian Construction Co., Inc., and
it is anticipated that the bank will be
in operation by October 31, 1972.
Michael P. Walsh is president of the
bank.

In d ia n a B a n k er N a m ed to
W h eaton N a tio n a l P o st
Carl H. Michel has been named
comptroller of the Wheaton National
Bank, according to President Robert
W. Schnack.
Mr. Michel was
formerly c o m p
troller at t h e
Hoosier S t a t e
Bank of Indiana,
Hammond, where
he has b e e n
comptroller since
1965. Prior to
C . H. M IC H EL

t h i,t

hue

w as

t e a c h e r in the
Hammond public school system.

C elebrate A n n iversary
At H eritage B ank

95{.

That's fine . . . as long as you do n 't come
across that rare individual w ho'd rather
fid d le around than tend to business.

Some Officers
and Directors
Play a Little

Financial Insurance Service, Inc. now offers
a new tw o-part form that not only contains
all the excellent features of our w ell known
D irectors’ and O ffice rs' L iability coverage,
but provides better protection fo r the
in n o c e n t director as w ell.
D irectors' lia b ility is n o t the same as
o ffic e rs ' lia b ility . It could be to your
advantage to learn how we see the difference
in terms of ÿour own cost and coverage.
"D o n 't ask for financial insurance service.
A s k for Financial Insurance Service, In c."

F IN A N C IA L IN S U R A N C E

S E R V I C E , IN C .

2 9 0 0 EAST DEVON AVENUE • DES PLAINES, ILLINOIS SDOIS •

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N orthw estern

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B an ker, August,

1972

Illinois N ew s

C hicago B an k er N am ed to
K iw an is In tern a t’l P ost
Roy W. Davis was recently elected
treasurer of the 270,000 member
Kiwanis International organization at
the group’s 57th
annual convention
in Atlantic City,
N. J. Mr. Davis
is vice president
of the Continental
Illinois National
Bank.
He is a twentythree year veteran
of Kiwanis and
R. W . D A V IS
has been president
of the Kiwanis Club of Chicago, a
governor of Kiwanis’ Illinois-Eastern
Iowa District, chairman of several in
ternational committees and both a
trustee and vice president of Kiwanis
International.

5 7 Y ears at C hicago B ank
George O. Carlson, senior vice pres
ident at the Chicago City Bank & Trust
Company, recently celebrated his 57th
anniversary with
the bank, accord
ing to Gavin Weir,
president.
Mr. C a r l s o n
began his career
with Chicago City
in 1915, starting
as a messenger.
He held virtually
every post in the
bank t h r o u g h
the years, including bookkeeper, teller
and cashier. He became a vice presi
dent in 1958, and was advanced to his
present post in 1969.

J o in s Old O rchard B ank
John D. Gateley has joined the staff
of Old Orchard Bank & Trust Com
pany, Skokie, as vice president in the
business banking
and loan depart
ment. The an
nouncement was
made by Louis E.
Rieger, bank pres
ident.
Mr. G ateley
has more than 10
years of banking
experience in the
J . D. G A T E LE Y
Chicago area in
the commercial and consumer lending
fields. He has been with the Pullman
Banking Group, Mid-America Nation
N orthw estern

B an ker, August,

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Federal Reserve Bank of St. Louis

1972

al Bank, Oak Park Trust & Savings
Bank and Pioneer Trust & Savings
Bank.
He is a graduate of DePaul Univer
sity and the American Institute of
Banking.

Art E x h ib it at H in sd a le
The Bank of Hinsdale recently held
an art exhibit of 15 paintings by Hins
dale artist Linda Layman.
Mrs. Layman, who calls herself a
“leisure-time dabbler,” has been dis
playing her works at the Community
House in Hinsdale for more than 20
years. She also exhibited her paint
ings at the Bank of Hinsdale four years
ago.

O pen C on tin en tal B ank
L easin g F acility
Continental Illinois Leasing Cor
poration, Chicago, subsidiary of Con
tinental Illinois Corporation, Chicago,

announced its official opening and the
election of its officers.
CILC manages all domestic leas
ing activities for Continental Illinois
National Bank and Trust Company
and other Continental Illinois affiliates,
as well as for its own account. The
lease portfolio and outstanding com
mitments under CILC management to
tal more than $100 million. CILC al
so serves in a liaison capacity with the
overseas leasing activities of Conti
nental Illinois’ merchant banking net
work.
The new CILC officers are: George
R. Baker, chairman; Gerald K. Berg
man, president; Joe M. Nachbin,
executive vice president; Arthur P.
Langendorff and Val F. Pautz, vice
presidents; John H. Beirise, second
vice president; Terrance J. Bruggeman,
leasing officer; Leo B. Engemann, sec
retary and treasurer; and Kevin J. Hallagan, assistant secretary and assistant
treasurer.

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A good incentive program can
brighten that corner where you are...
even on a cloudy day.
Amazing how a well-planned incentive
program boosts morale—stimulates
tellers, officers, everyone—makes them
cheerier, more alert—results in steppedup sales of bank services.
Of course a lot depends upon goals,
point systems, prizes and so on. A theme
is important, too. And sometimes,
letting the public in on what’s happening
is also a plus factor. Point is, there is
no one, all-purpose, incentive plan
applicable to every situation and equally
effective for every bank.
At American National, through
careful planning (and some painful trial
and error experience), we’ve arrived at
a very workable program for ourselves.
We’ll gladly pass it on to you.
Or, if your problems and goals are
different we’ll be happy to put you in
touch with some people who’ve been
through it before.
Let’s discuss it soon.
Ask Roy West (661-5047) to tell you about
the prizes in our awards catalog.

The Idea Bank
American National Bank
and Trust Company of Chicago
LaSalle at Washington 60690
Phone (312) 661-5000 Member FDIC

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Federal Reserve Bank of St. Louis

N orthw estern

B an ker, August,

1972

N orthw estern

B a n k e r, August,

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Federal Reserve Bank of St. Louis

1972

What kept
Lund American in its
own home town?
A business that employs 75 people is important to a
town of 828.
New York Mills, Minnesota, is such a town. It is
about 165 miles northwest of the Twin Cities and it
is the home of Lund American, Inc., makers of Lund
boats.
A critical expansion point for Lund came in 1958.
G. Howard Lund, President, wasn't anxious to merge,
sell or leave New York Mills, but he needed money.
So he turned to his local bank, Farmers and Mer
chants. They called the Marquette National Bank in
Minneapolis. Marquette said, "Go ahead."
That threesome has been going ahead every year
since then. Every year. Fourteen years of loans for
short term capital needs, with an occasional long
term loan when that need arose.
1968 was one of those occasions.
Lund saw that the leisure market was expanding to
include larger, more luxurious boats than the light

runabouts and fishing craft that formed the basis of
Lund's business. And they saw in Shell Lake Boat
Works of Shell Lake, Wisconsin, a source for this
type of boat.
Lund purchased Shell Lake Boats with the help of
bank financing.
Farmers and Merchants and Marquette shared the
loan.
In 1969 Lund stock went public and Marquette was
named Transfer Agent and Registrar.
Today Lund is still growing with sales near $3,000,000
annually. It has stayed in New York Mills and con
tinues to bank there.
Local banks all across the Upper Midwest are anx
ious to keep local business local and alive. It's one
of the better ways they can discharge their responsi
bility toward their community.
Marquette is equally anxious to help independent
banks do that job. Local banks can look to Marquette...

We help keep business in your town

Garv B Wollan

Avery G. Fick

Otto H. Preus

Bill Addington

Bill Rosacker

Len Erickson

Lome Newhouse

370-2154

370-2166

370-2167

370-2165

370-2164

370-2168

370-2169

Marquette National Bank Ak
Correspondent Banking Department • 777 Marquette Avenue
Minneapolis, Minnesota 55480 • (612) 370-2161

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Federal Reserve Bank of St. Louis

Member f d ic

N orthwestern

B an ker,

August,

1972

Minnesota
NEWS
JO H N

N A SH

T. L. JE FFE R S

P re s id e n t
E x e c . V . P.

St. P au l
M in n e a p o lis

A p p o in tm en ts at V alley
Two appointments to the Valley Na
tional Bank’s staff in North Mankato
were recently announced by John N.
Maiers, president.
Michael E. Newland was elected as
sistant vice president in charge of the
installment loan department. Mr.
Newland was formerly employed by
Commercial Credit in Mankato.

capital stock by sale of new stock:
—Merchants & Miners State Bank of
Hibbing, from $450,000 to $550,000.
—Moorhead State Bank, from
$225,000 to $250,000.
—Security State Bank of Pillager,
from $37,500 to $50,000.

A ccepts P o sitio n at P ierz
Larry G. Noeldner has accepted the
position of assistant cashier at the
Farmers and Merchants State Bank in
Pierz.
He has 10 years of banking experi
ence, the most recent being manager
of the bookkeeping and proof de
partments at the First State Bank of
New Brighton.

R ichard C. R ose P ro m o ted
M . E. N E W L A N D

D. M. ZELLM ER

Dennis M. Zellmer joins the bank’s
staff as assistant cashier in the install
ment loan department. Mr. Zellmer
recently returned from Okinawa where
he served as captain in the United
States Air Force.

C hanges at N o rth field
Walter Strangman, cashier of the
Northfield National Bank for the past
five years, has accepted an official po
sition with the First State Bank of
Paynesville.
The board of directors of the Northfield, bank appointed Gary L. Wickre
cashier and manager of the time-pay
department. Wickre has been with the
bank for the past three years as assist
ant cashier and auditor.
Wayne A. Finnern was appointed
assistant cashier by the board of direc
tors. Finnern has been associated with
the First Minnehaha National Bank of
Minneapolis.
The Paynesville and Twin City
banks are affiliated with Northfield Na
tional Bank through the First Bank
System, a regional holding company.

Increase C apital Stock
The Department of Commerce of
Minnesota has authorized the follow
ing banks to increase the amount of
N orthw estern

B an ker, August,

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Federal Reserve Bank of St. Louis

1972

Richard C. Rose has been promoted
to assistant vice president of The
American National Bank in Little
Falls, Glenn G. Howes, bank presi
dent, recently announced.
Mr. Rose will continue as manager
of the bank’s timepay department.
Previously he was associated with First
National Bank of Minneapolis and was
a credit analyst for First Bank System,
the regional bank holding company
also headquartered in Minneapolis.

B eu n in g to F irst State
Roger Beuning has joined the staff
of the First State Bank of Sauk Centre,
according to Pat DuBois, president.
Mr. Beuning was previously em
ployed at the Marquette National Bank
of Minneapolis as a trainee in many
phases of that bank’s operations.

D u lu th P ort A n n o u n ces
5 A p p o in tm en ts
C. Thomas Burke, executive direc
tor of the Seaway Port Authority of
Duluth, has announced the following
appointments to the Authority staff:
Roy W. Harnish as manager, port
promotion. He joins the Authority af
ter nearly 20 years in broadcasting. In
his new position, Mr. Harnish will as
sist Burke in developing interest in
Duluth port activities.

A.
H. Ames, Jr. as assistant traffic
manager. Previously Mr. Ames was as
sociated with Nordship Agencies, Inc.
in Milwaukee, engaged in operations
and traffic duties involved with serv
ing vessels and cargo, both import and
export. He has also worked with the
Milwaukee Harbor Commission spe
cializing in port promotion, ICC peti
tions, rate studies and statistical in
formation.
Mark Allen as the second field rep
resentative in the Authority’s midwest
trade office in Minneapolis. A Milwaukean, Mr. Allen has been district
manager for D. C. Andrews Interna
tional, a freight forwarding company.
He was also a ship’s foreman and car
go expeditor for a Milwaukee steve
doring firm and a rate and route clerk
in the Chesapeake and Ohio Railroad’s
Milwaukee office.
Phillip Tyson as assistant account
ant. He has been engaged in account
ing work in Duluth for 15 years.
Arvid Morken as manager, informa
tion services. Since April, 1970, Mor
ken has been assistant public relations
director. He formerly was a marine
columnist and reporter for the Duluth
Herald and News-Tribune.

H old G rand O p en in g
F o r H a m b u rg B ank
The new bank building housing the
State Bank of Hamburg was recently
completed and a grand opening was
held to mark the occasion.
The bank moved into the new quar
ters on May 1. Free prizes and refresh
ments were given away during the
grand opening. Henry C. Reget is pres
ident of the bank.

M oorh ead B ank P ro m o tes
Larry A. B e x e ll
Larry A. Bexell has been advanced
to assistant loan officer at the Moor
head State Bank, Dennis W. Troff, ex
ecutive vice president, announced.
Mr. Bexell joined the bank staff in
January this year and previously had
been employed in the Commerce De
partment, Banking Division, State of
Minnesota.

W alls E lected to B oard
J. R. Pellikka, president of the First
National Bank of Ely, has announced
that Ronald W. Walls was elected to
the board of directors.
Mr. Walls taught school in Mapleton. He was admitted to the practice
of law in 1969 and has been self-em
ployed in Ely since then.

lili 1

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IHM«
\\X)\ SHU

LETTERS
OE CREIM I

s.*A
JNS /vXVOVi'

»*nu
u-t
vv»M

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But with the right problem-solving informa
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tional Banking Department (612-372-8123).
Drawing upon up-to-date information gathered
through our foreign correspondent bank net
work, one o f our experts will help you resolve
your problem. Whatever country-whatever

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transaction it involves.
One phone call and you have our world
o f information in your hands. So when you
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Correspondent Banking Department

Northwestern
National Bank
of Minneapolis

Members FD1C

* im i i ¡ lili lililí i

IPER, Jaffray & Hopwood, Inc.
and Seattle-Northwest Corp., Se
attle, Wash, have signed a letter of in
tent under which Piper will acquire the
business and assets of Seattle-North
west in exchange for 26,700 shares of
Piper common stock.
Seattle-Northwest, founded in 1970,
is the leading municipal bond under
writer and dealer in the Pacific North
west with 13 employees and approxi
mately $800,000 gross revenue in fis
cal 1972.
Piper just recently announced an
agreement in principle calling for a
merger with Herron Northwest, Inc.,
member firm of
New York and
American Stock
Exchanges w i t h
offices in Seattle
and P o r t l a n d .
Harry C. Piper,
Jr., chairman, said
that “S e a t t l e Northwest a n d
Herron Northwest
H. C . P IP E R , JR .
will complement
each other and extend Piper’s full line
of investment services and securities
into the Pacific Northwest.” Mr. Piper
was recently named a director of the
New York Stock Exchange Board after
serving two terms as governor.
* * *
The appointment of Jerome S.
Donndelinger to the municipal bond
department in the Minneapolis home
office has been announced by Dain,
Kalman & Quail, Inc. Mr. Donndeling
er was formerly with Juran & Moody’s,
Inc., St. Paul office. He is a member
of the Twin City Bond Club and for
merly served on their board of gover
nors.
* * *
Two new board members have been
elected at the Guaranty State Bank,

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Federal Reserve Bank of St. Louis
N orthw estern

Banker, August,

1972

Robbinsdale, according to President
Walter C. Rasmussen.
The new directors are Henning M.
Nelson and David C. Walden. Mr. Nel
son is president of Henning Nelson
Construction Co., Robbinsdale, and
Mr. Walden is owner and president of
Walden Furniture Co., Robbinsdale.
* * *
Several promotions and election of
new officers have been announced at
the First National Bank of St. Paul by
President Philip

vision ' H, securF

joined the bank in
R. O . O L S O N
1 9 6 8 following
five years with the Northwestern Na
tional Bank of Minneapolis. He has
been an assistant vice president since
December, 1971.
Alfred E. Lemker, administration,
and Robert J. Timm, Division M, real
estate, have been named assistant vice
presidents. Mr. Lemker joined the
bank in 1969 following 15 years as an
accountant with the United States Steel
Corporation. He has been an account
ing officer in the bank since December,
1969. Mr. Timm has been a senior

R. J . TIM M

A . E. LEM K ER

loan officer since he joined the bank
in October, 1971.
William J. Latusky has been named
a bond portfolio officer, bank bond
portfolio administration.
Five men have been named invest
ment officers in Division H, securities
underwriting and investment services.
They are: Jerome J. Borovansky, Kit
B. Svee, Clayton L. Johnson, Roy T.
Ziegler and Richard E. Pringle.
* * *
Odin A. Sather has retired as vice
president of Northwestern National
Bank Southwest, Bloomington, after a
43-year banking career.
Mr. Sather began his career in 1929
at the Lincoln office of the Northwest
ern National Bank and remained there
until 1953 when he transferred to the
newly-chartered Northwestern Nation
al Bank of Bloomington-Richfield.
He was recently honored at a retire
ment celebration by friends and busi
ness associates.
* * *
Charles J. Spies has been appointed
trust auditor of Bank Shares, Inc.,
Minnesota based bank holding com
pany.
Since 1963 Mr.
Spies has been a
m e m b e r of the
audit staff at Marq u e t te National
Bank,
Bank
Shares’ major sub
sidiary. Prior to
joining Marquette,
he served as a
c. J . SP IES
bank examiner for
Northwest Bancorporation and the
Iowa Department of Banking.
* * *
It was announced that Joseph R.
Rousseau has been named vice presi
dent at Gambles Continental State
Bank.

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Federal Reserve Bank of St. Louis

M innesota N ews

C levelan d B an k A dds
C rook ston Man to Staff
Tom Lassonde has joined the staff
of the Peoples State Bank at Cleveland
and will be working with both insur
ance and sales, according to an an
nouncement by Lowen Richter, bank
president.
Mr. Lassonde has been employed
for four years with the Crookston offict of the Thorp Loan and Thrift Co.,
serving as office manager for the past
year and a half.

S u p erv iso rs N a m e W illiam s
ARCHITECT’S drawing of the new home planned fo r the Farmers and M erchants State
Bank of New York Mills.

N ew York M ills B ank U nder C onstruction
Farmers and Merchants State
T HE
Bank, under construction in New
York Mills, will be completed in the
spring of 1973, according to E. H.
Buerkle, senior president.
The bank will be located at Walker
Street and State Highway 10, the
former site of the Merchants Hotel. It
will have two levels totalling 6,510
square feet.
Dykins-Handford, Inc., Minneapolis
architects of financial buildings, de
signed the bank.
A new service, auto banking and a
night depository, will be available for
Farmers and Merchant’s customers at
the west drive-up window. Under
ground requirements for a future re
mote visual drive-in facility will be in
stalled as part of the initial construc
tion, according to the architects.
Facilities located on the first level
will include a display dias on the
south-east side, two private offices, a
closing room which could double as
a private office, cash safety deposit
vault, safety deposit booths, bookkeep
ing room and a book vault behind the
five tellers’ stations. In addition, there
will be a double check desk and a sitdown tellers’ station, manned by an all
purpose teller who will also service the
needs of the safety deposit customers.
The bank, now has $7 million in
assets. It was founded in 1916 by a
group of New York Mills businessmen.
The bank closed in 1924 and later re
opened under the leadership of E. H.
Buerkle, Sr., who had been serving as
a liquidator with the Minnesota State
Banking Department.
The bank now employs 11. Officers
are: E. H. Buerkle, president, E. H.
N orthw estern

B an ker, August,

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

1972

Buerkle II, vice president, R. W.
Jacobson, cashier, and W. A. Asmund,
assistant cashier. Members of the
board of directors include: E. H.
Buerkle, chairman, E. H. Buerkle II,
R. W. Jacobson, M. A. Miller and Dr.
R. J. Morstad.

John Day Williams, Oklahoma’s
Commissioner of Banks since August
1969, has been elected second vice
president of the Conference of State
Bank Supervisors by its board of direc
tors, it was announced by President
and Board Chairman Robert P. Briggs.
Mr. Williams, 43, fills the vacancy
created by the resignation of William
T. Dentzer, Jr., as superintendent of
banks of New York.

O p e n in g M o n tg o m ery Bank
J o in s First S ecurity
Robert Bremer has joined the staff
at the First Security State Bank of
Sleepy Eye as assistant cashier and in
stallment loan manager.
For the past five years he has been
manager of Thorp Loan and Thrift in
St. James.

Construction has been completed at
the new Bank of Montgomery, and the
bank is opening for business this
month.
Nearly 400 local and area residents
have purchased stock in the new bank,
which has total capitalization of $600,000.

Form M oAmCo L ife C om pan y
ORMATION of MoAmCo Life
F Insurance
Co., a wholly owned sub
sidiary of MoAmCo Corp., Minne
apolis, Minn., was announced by David
Fleming, president and chief executive
of the parent company.
MoAmCo Life underwrites credit
life insurance policies on mobile home
and recreational vehicle loans which
MoAmCo Corp. originates and serv
ices through its Indemnity Division.
MoAmCo Corp., as agent for other
insurance companies, placed credit life
policies aggregating $36 million in face
value during the 12 months ended
April 1. Of that business, $9.5 million
will be ceded back to MoAmCo Life
Insurance Co. by Old Republic Life
Insurance Co., Chicago, 111. Negotia
tions are under way with other com
panies for ceding of additional policies.

By forming its own insurance com
pany, MoAmCo Corp. expects to de
rive increased earnings from an addi
tional share of premium income and
the investment of reserve funds, Flem
ing said.
MoAmCo Life, a legal reserve in
surance company with capital and sur
plus of $150,000, can provide a maxi
mum of $15,000 coverage for each in
dividual borrower insured.
Robert T. Wienert, was named
president and a director of MoAmCo
Life. Mr. Wienert is senior vice presi
dent and a director of MoAmCo Corp.
and heads its Indemnity Division.
Arvid Rued, was named executive
vice president, secretary and a director
of MoAmCo Life. Mr. Rued, vice
president-marketing of the Indemnity
Division, is in charge of operations for
the insurance company.

Minnesota News

John P. Knutson, Midland National
Bank president, has announced the
promotion of Frank N. McKean from
assistant cashier to assistant vice presi
dent, and the appointments of Mich
ael E. Bodeen, William J. Breit and
Gordon J. Spartz as assistant cashiers.

F. N . M cK E A N

M. E. BO D EEN

W . J . BREIT

G. J. SPARTZ

Mr. McKean joined Midland Na
tional in 1964 and has worked in the
credit department, profit improvement
programs and operations department,
where he was responsible for bank re
serves, federal funds and wire transfer.
In his current assignment he will
supervise the operations department
activities that include transit, book
keeping, data processing, messengers
and analysis functions.
Mr. Bodeen joined the bank in
1970. His responsibilities will continue
in the area of purchasing, supplies and
addressograph functions as well as
other operating services.
Mr. Breit’s responsibilities will be
in the mortgage loan, commercial loan,
foreign transaction and customer serv
ice functions. He joined Midland Na
tional in 1970 and has had experience
in the credit department, collateral-dis
count and installment banking depart
ments.
Mr. Spartz is responsible for the ac
counting department, bank reserves,
federal funds and wire transfer opera
tions of the bank. He joined the bank’s
staff in 1967.
:-í

Peter R. Spokes, corporate planning
vice president at the Northwestern Na
tional Bank of Minneapolis, was
named chairman of the Minneapolis
Area Red Cross chapter at its annual

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

meeting recently.
❖ *

Donald G. Wachholz, assistant vice
president, has returned to the corre
spondent division at the First National
Bank of Minne
apolis. In his new
position he will
be serving banks
and bankers in
Wisconsin a n d
Upper Michigan.
Mr. Wachholz
joined the bank
in 1957. After
serving in the
management
training program he spent four years
in the controller’s department and
eight years in correspondent banking.
For the past two-and-a-half years he
has been assigned to the bank’s bond
department where he has been in
charge of installations and operations
of the bank’s computerized bond port
folio services now in use by some 165
Upper Midwest banks.
❖ * *
Ray E. Wheeler has been elected
vice president of Mid America Bancorporation, St. Paul, and chairman of
the Mid America State Bank, Mendota Heights. Mr. Wheeler was for
merly with Economics Laboratory,
Inc.
:i:

B an k ers R eceiv e
5 0 -Y ear A w ard
Twelve Minnesota bankers became
members of the Minnesota Bankers
Association Pioneer Club and received
a plaque in honor of their 50 years of
service in banking during the Min
nesota Bankers Association (MBA)
82nd annual convention recently held
in Duluth.
Citations were presented to new 50Year Bankers by pioneer and past club
president D. Fay Case, resident of the
Security State Bank, Cannon Falls.
Mr. Case said the award “is in rec
ognition of 50 years of service by an
outstanding banker, and is a token of
the Minnesota banking industry’s sin
cere respect and thanks for many years
of service to the public and banking
industry.”
New members inducted into the ex
clusive “50-Year Bankers” organiza
tion include: Milton O. Lyngholm,
First National Bank, Crookston; L. P.
Wagner, First National Bank, Jackson;
C. H. Sanderson, Jasper; George H.

Dinkel, First National Bank, Long
Prairie; Gordon H. Olson, First
Bloomington Lake National Bank,
Minneapolis; William H. Grell, First
State Bank, New Germany; I. J. Muggli, Farmers & Merchants State Bank,
Paynesville; W. A. Garratt, Farmers
& Merchants State Bank, Preston;
Frank J. Thul, First National Bank,
St. Charles; A. S. Birkemeyer, State
Bank of Springfield; Clarence J.
Elsenpeter, First National Bank, Walk
er; and S. J. Kryzsko, Town & Country
State Bank, Winona.

G arm ann P ro m o ted at
O w aton na S ecu rity B ank
Mrs. Marlene Garmann has been
promoted to accounting officer of the
Security Bank in Owatonna, according
to A1 Severson, president.
In her new position, Mrs. Garmann
will be responsible for all bank ac
counting.
She began her banking career with
the First National Bank of Elmore and
joined the staff of Security Bank in
1964. Mrs. Garmann has worked in
all operating departments of the bank
as well as acting in the capacity of
teller and head bookkeeper.

R etired B ank
P resid en t D ies
Charles O. Bennett, 75, retired pres
ident of Northwestern State Bank of
Montevideo died June 27 at the Chip
pewa County-Montevideo Hospital of
a cerebral hemorrhage.
Born in North Dakota, he began his
banking career as a bookkeeper in the
First State Bank of Edmunds, N.D. in
1919. After 10 years there, Mr. Ben
nett joined the James River National
Bank in Jamestown as agricultural rep
resentative.
In 1934, he became a special repre
sentative of the Northwestern National
Bank of Minneapolis for a four-state
area. Mr. Bennett had been affiliated
with the Northwestern State Bank of
Montevideo since 1940, then known
as the Union State Bank.

C on stru ction B eg in s
President Gladden Redding of the
Windom State Bank, Windom, has an
nounced that construction has begun
on the bank’s new home office. Mr.
Redding said the bank should be com
pleted and ready for occupancy in
about 10 months. Peterson-Madson
Construction Co. are general contrac
tors.
N orthw estern

B an ker, August,

1972

54
KITE STRING . . .
(Continued from page 26)

South Dakota
NEWS
M O R R IS

N EIL M ILN ER

W IN T E R

P re s id e n t

S e cre ta ry

A ndes
H u ro n

J o in s P ierre N ation al
Dennis Fargen has been named in
stallment loan officer at the Pierre Na
tional Bank, Pierre.
Mr. Fargen is a
graduate of North
ern State College,
Aberdeen. He has
been with the de
partment of bank
ing and finance of
the State of South
Dakota as an ex
aminer, and is a
F irs t Lieutenant
D. FA R G E N
in the South Da
kota National Guard.
in addition to his duties as install
ment loan officer, he will have charge
of the student loan program at the
bank.

R ed field A dds E vjen
Gary Evjen, a 1972 graduate of
Northern State College, has joined the
staff of the Redfield branch of the First
National Bank of Aberdeen.
Mr. Evjen will be training in vari
ous areas of the bank, according to El
mer Goetz, vice president and branch
manager.

P la n 1 9 7 3 SD B A T o u r
South Dakota bankers will hold
their Mid-Winter Management Con
ference, February 8-16, in Torremolinos on Costa Del Sol, Spain.
The tour includes transportation
from Sioux Falls to Malaga and return
via Trans International Airlines DC8 jet. First Class dinner and cocktails
will be served both ways. Seven nights
accommodations at the new luxurious

Aloha Playa Hotel located on the
beach will be provided.
This tour is open only to members
of the South Dakota Bankers Associa
tion, their spouses, children and par
ents residing in the same household as
a member. Passports will be necessary
for this trip. Tour cost is $330.
Costa del Sol located on southern
most tip of Spain, is famous for mag
nificent beaches, cosmopolitan resorts,
primitive fishing villages, luxuriant
sub-tropical valleys and towering
mountains, the guardians of the
Coast’s fabulous weather. Swimming,
golfing and fishing are year-around
pursuits.

W estern B ank A p p o in ts
Sw eetm an as D irector
The board of Western Bank in Sioux
Falls announced recently the appoint
ment of Richard C. Sweetman to the
board of directors.
Mr. Sweetman
is a lifetime resi
dent of S i o u x
Falls and a grad
uate of Washing
ton High School
and the Univer
sity of N o t r e
D a m e . He is
p r e s e n t l y the
R. C. SW EETM A N
p r e s i d e n t of
Sweetman Construction Company, the
president and chairman of the execu
tive board of Ramkota, Inc. and the
vice president of Concrete Materials.
Mr. R. C. Sweetman succeeds his
father, R. S. Sweetman, as a member
of the Western Bank board of direc
tors.

1972 South D akota G roup M eetings
Group
4
5
3
1
2

Date
September
September
September
September
September

N orthwestern

B an ker, August,

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

11
12
13
14
15
1977

Place
Mobridge
Rapid City
Chamberlain
Sioux Falls
Aberdeen

Site
Mobridge Country Club
Howard Johnson’s
Lee’s Motor Inn
Minnehaha Country Club
Sheraton Motor Inn

take to come back if it bounces.
In New York City, a check drawn
on one Clearing House bank and de
posited in another has a three day
cycle. If it is deposited on Monday (af
ter 10 AM), it will be exchanged at
the Clearing House and paid for on
Tuesday at 10 AM.
The bank on which it is drawn has
until 11 PM on Wednesday to return
it to the presenting bank.
The smart N.Y. City Baker delays
a Monday deposit of a Clearing House
check until Thursday.
In the case of the Trenton and New
York banks, 8 days delay appears to
be appropriate.
Second, having established a system
for recording uncollected funds, the
next step is to see to it that the system
is followed. If the system calls for peo
ple to analyze the deposit and to re
cord the delay, it is important that they
do an effective job.
Although almost everyone now does
his demand deposit bookkeeping by
computer, not all of us have fully auto
mated transit systems which calculate
the appropriate delays.
Thirdly, when an account is referred
as drawing into uncollected funds, re
member that it is a potential kite. The
decision of whether to pay or return
an item which causes the referral
should be made on the basis of knowl
edge of what was deposited.
Was it a check drawn in the normal
course of business? or
Was it a check drawn to fly a kite?
The officer who pays an item be
cause we got paid for a deposited item
and because of the credit worthiness
of his customer runs the risk that the
deposited item will be returned unpaid.
It’s one thing to grant a loan — at rJ
least you get interest for the risk you
take. But it’s another thing to close
your eyes and grant an interest free
loan through the medium of a kite.
And finally — and once again:
Know Your Customer
Remember what the Comptroller
said in his policy guidelines for nation
al bank directors;
“Kiting is a method whereby a de r
positor ............... utilizes the time re
quired for checks to clear to obtain an
unauthorized loan without any inter
est charge.”
Don’t be on the short end of the
string when someone cuts it in two! —
End

North Dakota
NEWS
D A N IE L J . LE S S A R D
W . J . D A N ER

P r e s id e n t

S e c re to ry

G ra fto n
B is m a rc k

B u sin ess G raduate J o in s
B ank o f N orth D akota
H. L. Thorndal announced that Ed
ward B. Sather has joined the Securi
ties Department of the Bank of North
Dakota.
He will be working with Charles F.
Campbell, vice president and manager
of the securities department, and John
A. Dewald, investment coordinator.
Mr. Sather, 26, graduated from the
University of North Dakota this spring
with a B.A., B.S. degree in business ad
ministration.

P a sses $ 6 M illion
M ark in In co m e
The Bank of North Dakota recently
passed the six million mark in income
from oil leases, bonuses and royalties,
according to H. L. Thorndal, presi
dent.
Since the first lease payments were
first received in 1948, the bank has re
ceived from bonuses, $2,393,566.57;
from rentals, $1,012,552.84; from roy
alties, $2,596,053.02, making a total
of $6,002,172.43.
The bank holds approximately 750,000 mineral acres throughout North
Dakota. Land was acquired through
a land loan program in the 1920’s and
foreclosures in the 1930’s.
The Bank of North Dakota deliv
ered $1,625,000 to the state treasurer
for transfer to the state’s General Fund.
This represents one-fourth of the bank’s
appropriated $6,500,000, which will be
delivered to the General Fund during
this biennium.
The Bank of North Dakota had net
operating profits of $4,839,000 in
1971 and also received $675,000 from
a one-time transfer by assuming the as

ley Chapter of the Bank Administra
tion Institute comprising 22 area banks
in North Dakota and Minnesota.
Other officers elected are: Larry
Kohler of Valley State Bank, Oslo,
Minn., vice president; Willis Travers
of Walsh County Bank, Grafton, N.D.,
treasurer and Dennis Larson of First
National Bank in Grand Forks, secre
tary.
Newly-elected directors are Good
sets of the Judge A. M. Christensen
win Helseth of Community National
Project at Burlington, N. D.
So far, in 1972, the bank’s earnings Bank in Grand Forks and Jim Haug
are exceeding last year’s by over of Union State Bank, Thief River
Falls, Minn. Holdover directors are
$500,000 on the same date.
Richard Wilheimi, Park River, N.D.,
State Bank and Ernest Hilkey of First
F argo B ank O fficer
National Bank of Crookston, Minn.
H eads A m erican L egion
Mr. Walth has been employed with
William C. Sweeney, Jr., assistant Valley Bank & Trust Co. since gradu
vice president of the Merchants Na ating from high school. He is also a di
tional Bank & rector of the Red River Valley Institute
T r u s t Company of Banking and secretary of the Grand
of F a r g o, was Forks Exchange Club.
elected d e p a r t ment commander
H irsch E lected
of the N o r t h
T
o T o p P o st
Dakota American
A. L. Hirsch of Bismarck has been
Legion at the de
partment’s annu elected executive vice president and
al convention in manager of the newly incorporated
W . C. S W E E N E Y , JR .
North Dakota State Development
Bismarck, N. D.
Credit Corporation, it has been an
nounced by Richard T. Carley, presi
S o rlie E lected D irecto r
dent. Mr. Hirsch, 56, is a licensed real
A. Glenn Sorlie, publisher of The estate broker in North Dakota and
Bismarck Tribune, has been elected a Minnesota, and was an officer of the
director of The First National Bank Dakota National Bank of Bismarck for
and Trust Company of Bismarck.
23 years.
The election was announced by
He was on the Board of Governors
Robert P. Hendrickson, president of of the Missouri Valley Chapter of the
First National.
American Institute of Banking.
Sorlie is a former director of the
The North Dakota State Develop
Northwest Daily Press and the Associ ment Credit Corporation has been es
ated Press Managing Editor’s Associa tablished under a state law which al
tion. He is also a member of the lows all banks, insurance companies,
American Newspaper Publishers Asso savings and loan associations and oth
ciation, Inland Daily Press and the er lending institutions to create a loan
North Dakota Press Association.
pool for development and expansion
of industry and agriculture in the state.
This will be provided by participating
B a n k in g G roup E lects
lending agencies committing up to 2V2
W alth as P resid en t
per cent of their capital and surplus
James Walth of Valley Bank & to the pool. The corporation will qual
Trust Co. in Grand Forks has been ify as a small business investment cor
elected president of the Red River Val poration and participate with the
Small Business Administration.

1972 N orth D akota G roup M eetings
Group
Northeast
Northwest
Southwest
Southeast

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

Date
October
October
October
October

17
18
19
20

Place
Devils Lake
New Town
(Undecided)
(Undecided)

S c h e d u le L en d in g S c h o o l
The two-week resident session of
The National Commercial Lending
School will be held on the campus of
The University of Oklahoma, Norman,
November 27 through December 8.
1972.
N orthwestern

B an ker, August,

1972

Montana
NEWS
B. G . P A IG E

P re s id e n t

R. C . W A L L A C E

P h ilip sb u rg

S e c re ta ry

H e le n a

N am e W om an O fficer

B an k ers E lect O fficers

The promotion of Lillian M. Knudson to installment loan officer of Mon
tana Bank, Great Falls, was announced
recently by Vern Hendershott, presi
dent. Mrs. Knudson joined the bank
in 1956 in the installment lending di
vision. She has been active in AIB and
numerous civic organizations.
Mr. Hendershott also announced the
retirement of George Huston, vice
president and commercial loan officer,
as of July 1, after working in banking
in Great Falls for 44 years. Mr. Hus
ton has been a director of Montana
Bank since 1949 and will continue in
that capacity.
Assuming the duties of commercial
loan officer is R. Lee Shockley, who
will also continue his responsibilities
of marketing and public relations vice
president. Mr. Shockley started with
the bank in 1941 as a messenger.

The Rocky Mountain Chapter of
Robert Morris Associates — the na
tional association of bank loan and
credit officers — has elected new of
ficers for 1972-73.
They are president, Dari G. Hob
son, Central Bank & Trust; first vice
president, Robert S. Pulcipher, First
National Bank of Denver; second vice
president, Leo Giles, United Bank of
Denver; secretary, Gary L. Bradley,
First National Bank of Colorado
Springs; treasurer, William A. Maltby,
Colorado National Bank, and immedi
ate past president, Jack L. Panter,
American National Bank.
Directors are Harry Kountze, Col
orado National Bank; James Osbourn,
Central Bank & Trust, and Robert
Priester, United Bank of Denver.

Colorado
NEWS
DALE R.

H IN M A N
G r e e ly
P re s id e n t
C o lo ra d o B a n k e r s A ssn .

University of Colorado, was named
vice president in the commercial bank
ing division. He has been associated
with the United Bank of Denver since
1962 and has worked with bank in
vestments since 1969.
Charles H. Powers has been named
vice president in charge of a new com
mercial loan collection activity. He is
a graduate of the University of Idaho
and its School of Law.

D. P. SM ITH

C. H. P O W E R S

Jed J. Burnham was named com
mercial banking officer. He joined the
credit department of United Bank in
1970 and is assigned to the national
accounts market in the commercial
banking division.
Richard D. Moore, named trust in
vestment officer, is a graduate of the
University of Colorado and was asso
ciated with Financial Programs Inc.
and the First National Bank of Chica
go before joining United Bank.
Joseph L. Barrow, Jr., a University
of Denver graduate, has been pro
moted to trust officer in charge of de
velopment and marketing for the trust
banking division. He joined the bank
in 1968 and is also marketing council
chairman and a member of the bank’s
urban affairs council.

N evada N ew s
T w o E lected O fficers
Melvin J. Roberts, chairman of the
board of the Colorado National Bank,
Denver, has announced the election of
two new officers of the bank.
Michael L. Collins has been named
operations officer. Mr. Collins joined
the bank in 1970. He is now a man
ager in the remittance banking, book
keeping and cash items areas of the
bank. He is a graduate of Colorado
State University.
Billy E. Wickham was named inter
national operations officer. Mr. Wick
ham has been with the bank since
1961 and last year moved to the bank’s
expanded international department
where he will continue to handle gen
eral operations.
N orthw estern

Banker, August,

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

1972

N am ed V ice P resid en t
James F. Sommer has been named
a vice president of First Trust Corp.
of Denver.
Mr. Sommer has 1 1 years experience
in finance, primarily in positions with
Boettcher & Co. and E. F. Hutton &
Co. From 1970 to 1972 he specialized
in tax shelter investment work and the
development of institutional accounts
for management by investment coun
seling firms.

U n ited B ank M akes
F ive A p p o in tm en ts
The board of directors of the United
Bank of Denver has announced five
appointments.
Doyle P. Smith, a graduate of the

P la n N ew R en o B u ild in g
Construction has started on the new
head office building for Security Na
tional Bank in Reno. The building will
be at South Virginia and Liberty
Streets.
The old head office on First Street
will become a branch office and this
will make 11 banking offices Security
has in Northern Nevada. The building,
designed for an eventual nine floors will
currently consist of four stories with a
lower level of 68,000 square feet. Com
pletion is scheduled for 14 months. Ad
equate above ground parking will be
provided. The application of First Na
tional Bank of Nevada for a branch at
Sun Valley has been approved by the
office of the Comptroller of Currency.

We get off the mark fast when it comes
to check collections, cash letters and
clearing. But we don't rest on our
laurels. Because our step-lively
Correspondent Bank Department knows
the banks we serve in a 12-state area
expect us to keep finding ways to make
our fast service even faster.
We're doing just that.
And speed, efficiency and know-how

are the hallmarks of our other services,
too. Including loan participation,
credit analysis, real estate packages,
trust services, CD's, personnel review
and special services.
Want to know more about us ? Just ask!
You'll discover First of Denver, the
largest correspondent banker in the
entire Rocky Mountain West, really
delivers.

W hen speed counts
in transit transactions.
First of Denver delivers.

First of Denver
The First National Bank of Denver
P. 0. Box 5808, Denver, Colorado 80217
Phone (303) 893-2211

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Federal Reserve Bank of St. Louis

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Banker,

August,

1972

58
buildings, one in Portland and one in
Salem, Ore.
With 30 U-Bank units already in
operation at branches throughout Ore
gon, U.S. National Bank now has the
B ER N A R D R. W EB ER
nation’s largest installation of these
Cheyenne
convenience outlets.
P re s id e n t
W y o m in g B a n k e r s A ssn .
The approvals, which climaxed an
eight-month review by the Comptrol
ler’s staff, mean a new era of banking
convenience for thousands of the
Puget Sound National Bank.
bank’s customers in Portland and
C on stru ction C ontract
Directors of the four banks have ap Salem. The off-premise U-Bank ma
S ig n ed in Jack so n H ole
proved the merger agreements. The chines will be on main pedestrian thor
The First National Bank of Jackson
mergers now require the approval of oughfares at the Eastport Plaza in
Hole will have a new home by yearthe stockholders of the four institutions Portland and Lancaster Mall in Salem.
end, according to Chadwick H. Car
and of the regulatory agencies before
U.S. National Bank has been a
penter, chairman, and Robert T. Noel,
becoming effective.
pace-setter in introducing and enlarg
president.
Plans call for the three state banks ing automated seller service. Early in
A construction contract was signed
to become offices of the Puget Sound 1970, the bank, through surveys and
recently with Bancroft Construction
National Bank which will increase advertising, asked for responses con
Co., Inc., Pinedale, for a new bank
Puget Sound’s branches to 32.
cerning customer desires.
building to be located at the corner of
These surveys confirmed the fact
Glenwood and Pearl. The 8,200
that
the life-style of many Oregonians
square-foot structure will cost in ex D isa p p ro v es A p p lica tio n
desire
longer banking hours, and the
The
Office
of
the
Comptroller
of
the
cess of $350,000.
decision
was made to purchase and in
Currency
has
disapproved
an
applica
The new bank building will feature
stall
33
self-service banking facilities
tion
by
The
National
Bank
of
Com
a moss rock exterior and open-beam
to
enable
customers to carry out many
construction with large areas of glass merce of Seattle for a branch bank in
banking
transactions
at any hour of the
King
County.
taking advantage of a norther expo
day or night, any day of the week.
sure. The central theme of the interior
Each facility cost about $30,000
is a large fireplace with coffee service Oregon N ew s
and was installed at a present branch
and courtesy telephones for customer
location on a well-lighted outside wall.
convenience. The large community F iles $ 2 5 M illion
Inventing and copyrighting the name
room with front entry way is designed C apital N ote O fferin g
for convenient access and will be
United States National Bank of Ore “U-Bank” for its automated tellers, the
equipped for varied community activi gon announced that it has filed with bank carried out an intensive promo
ties.
the Office of the Comptroller of the tion using television spots produced in
Currency a preliminary offering circu Oregon as well as newspaper and radio
lar relating to a proposed public offer advertising.
M ark 1 0 0 th A n n iversary
Current U-Bank equipment is capa
The Wyoming Stockgrowers Associ ing of $25-million of capital notes due ble of handling 90% of normal teller
ation recently celebrated its centen July 15, 1980.
The capital notes may not be re transactions, including cash withdraw
nial celebration in Cheyenne. During
deemed
prior to October 15, 1979 and als, deposits, payments and transfers.
ceremonies marking the occasion at
The new off-premise locations are in
the State Capitol, A. H. Trautwein, will be subordinated to deposits and major regional shopping centers with
chairman of Wyoming Bancorporation, certain other liabilities of the bank. Net nationally-affiliated retail stores as an
presented a gold medallion to Gover proceeds from the sale will be added chors. United States National is repre
nor Stan Hathaway in behalf of Chey to the general funds of the bank for use sented in both centers by conventional
enne National Bank, East Cheyenne in its banking business.
United States National Bank of Ore branch facilities. User criteria de
National Bank, First Cheyenne State
veloped by the bank in the test phases
Bank and other member banks of Wy gon is primarily engaged in a commer of U-Bank indicated that neither of the
cial banking and trust business. Meas
oming Bancorporation.
ured by total deposits at December 31, shopping center branch locations met
1971, the bank is the second largest the criteria for consumer acceptance,
W ashington N ew s
in Oregon and the 38th largest in the because of remoteness from main foottraffic areas.
nation.
B anks A n n o u n ce
The bank expects to install the free
M erger P lan s
standing units in Portland and Salem
Agreement for the merger of Eaton- O regon B an k T o Install
in the near future.
ville State Bank, State Bank of Mor U -B ank A u to m a ted T ellers
United States National Bank of Ore A p p lica tio n is R ejected
ton, and the Orting State Bank with
The United States National Bank of
the Puget Sound National Bank in gon has recently received approval
Washington has been announced joint from the United States Comptroller of Oregon’s application for a branch bank
ly by Kelly Hagen, president and chair Currency to install two of its U-Bank in North Bend has been disapproved
man of the boards of the three state automated teller machines at free by the Office of the Comptroller of the
banks, and Reno Odlin, chairman of standing locations away from branch Currency.

Wyoming NEWS

N orth w e s te rn B an ker, August,

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

1972

In case
of
emergency,
call
this number

303W 33456
When you need banking help in a hurry, call this
number for action. One call is all it takes. Your Central
Bank Correspondent will give you prompt and
accurate response. If he’s not there, another member
of the team will be. That way, we never leave you
hanging when you need help.
Don E c h te rm e y e r

Jo h n E d m is to n

B ill G o s s e tt

L arry M atthes

THECENTRAL6^ K
15th and Arapahoe Streets • Denver, Colorado 80217 • 303/893-3456

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Federal Reserve Bank of St. Louis

N orthw estern

B an ker,

August,

79 7 2

Utah News
U tah B an k er D ies
Morris W. Glover, 65, a prominent
Northern Utah banker, died in a Salt
Lake City hospital after a long illness.
He was vice president and manager of
the Brigham City office of First Se
curity Bank of Utah, N.A.
Mr. Glover began his banking ca
reer with the First National Bank of
Brigham City in 1927 and was serving
as assistant cashier when the bank was
acquired by First Security in 1943. He
was elected assistant manager in 1949,
assistant vice president in 1958 and
has served as vice president and man
ager since 1964.

First S ecu rity P r o m o tio n s
Roscoe M. Grover, senior vice pres
ident and supervisor of First Security
Bank’s Salt Lake division has an
nounced the following promotions af
fecting officers of First Security Bank
of Utah, N.A.
Jerry A. Duffin, formerly assistant
manager, Sugar House office, was
elected assistant vice president and
manager, Eighth South office.
David J. Gomez, formerly assistant
manager, Valley Fair office, has been
elected manager of that office, succeed
ing Michael S. Burraston, who has

CONVENTIONS
ABA—American Bankers Association
AIB—American Institute of Banking
ARBHC — Association of Registered
Bank Holding Companies
BAI—Bank Administraton Institute
BMA—Bank Marketing Association
CSBS—Conference of State Bank Super
visors
IBAA—Independent Bankers Association
of America
NABW—National Association of Bank
Women
RMA—Robert Morris Associates
Aug. 6-19—Graduate School of Banking,
University of Wisconsin, Madison.
Aug. 13-18—ABA National Mortgage
School, Ohio State University, Colum
bus.
Aug.
14-25—ABA National
Trust
School, 11th Annual Session, North
western University, Evanston, 111.
Aug. 20-Sep. 1—Pacific Coast School of
Banking, University of Washington,
Seattle.
Sep. 6-9—ABA 46th Annual Western
Trust Conference, Del Monte Hyatt
House, Monterey, Calif.
Sep. 10-13—ABA National Credit Card
Conference, Brown Palace, Denver.
N ofor
r t hFRASER
w este rn Banker, August,
Digitized
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1972

been named assistant manager of the
bank’s Sugar House bank.
Robert D. Sturges, who has been
taking the bank’s management training
program, was named assistant man
ager, South State Street office.
Romney Stewart was elected com
mercial loan officer, Main at First
South, and Richard L. Charles, was
named mortgage loan officer, Main at
Fourth South.

N am e C hanges
The Office of the Comptroller of the
Currency has approved the title change
of the Moab National Bank to the First
Western National Bank.

A p p ro v es A p p lica tio n s
The Office of the Comptroller of the
Currency has approved applications by
the Zions First National Bank in Salt
Lake City for branch banks at Main
Street in Duchesne and First North
and Main Streets in Roosevelt.

H u g h es J o in s Staff
Max Hughes has joined the staff of
Utah Mortgage Loan’s Salt Lake City
office, it was announced by George H.
Champ, president of the Logan, Utah
based firm. His title will be assistant
vice president.
A Salt Lake City native, Mr.
Hughes has 25 years of experience in
Sep. 17-20-—ABA National Personnel
Conference, Sheraton-Dallas Hotel,
Dallas.
Sep. 17-21—NABW 50th Annual Con
vention, Palmer House, Chicago.
Sep. 24-27—BAI 48th Annual Conven
tion, Muehlbach Hotel, Kansas City.
Oct. 6-7—ARBHC Fall Meeting, Fair
mont Hotel, Dallas.
Oct. 7-11—ABA 98th Annual Conven
tion, Dallas.
Oct. 15-18—RMA 58 th Annual Fall
Conference, Americana Hotel, Bal
Harbour, Fla.
Oct.
16-18—MTM Association for
Standards and Research Annual Con
ference, Royal Coach Inn, Atlanta, Ga.
Oct. 22-25—Iowa Bankers Association
86th Annual Convention, Hotel Fort
Des Moines, Des Moines.
Oct. 29-Nov. 2— BMA Annual Conven
tion, Americana Hotel, Bal Harbour,
Fla.
Nov. 12-15—ABA 21st National Ag
Conference, Denver Hilton Hotel,
Denver.
Nov. 16-17—ABA 41st Annual MidContinent Trust Conference, Drake
Hotel, Chicago.
March 18-21, 1973 — Independent Bank
ers Association of America — 43rd
Annual Convention — San Francisco
Hilton Hotel, San Francisco.

the mortgage and real estate field with
Prudential Insurance Company as
mortgage loan inspector, appraiser, re
gional appraiser and associate manager.

Idaho News
F irst S ecu rity E lects
H aw k in s V ice P resid en t
Ralph W. Hawkins has been elected
assistant vice president of First Se
curity Bank in Moscow, Idaho.
The announcement was made by
Robert L. Andersen, senior vice presi
dent and supervisor of the northern di
vision of First Security Bank of Idaho,
N.A.
A native of Montana, Mr. Hawkins
is a graduate of Rocky Mountain Col
lege where he received a degree in eco
nomics and business. He has been as
sociated with First Security since 1965,
joining the banking organization in
Grangeville. From 1966-67 he served
as assistant manager of the bank’s
Craigmont office and was transferred
to Moscow in 1967. He has served as
commercial loan officer since June of
1970.

S tudy Farm In c o m e and
D ebt G ains Sin ce 1 9 5 0
Farm income has made tremendous
gains in recent years — primarily due
to a much larger volume of marketings
— but the costs of farm production
have risen even faster, according to
Blaine W. Bickel in the June Monthly
Review of the Federal Reserve Bank
of Kansas City.
Cash receipts from farm marketings
reached $51.6 billion last year, com
pared with $28.5 billion in 1950. But
production costs currently take 73
cents of each dollar of income, com
pared with 59 cents in 1950.
Furthermore, Mr. Bickel points out,
the number of smaller farms — those
with sales of less than $10,000 — has
been decreasing rapidly. These farms
are receiving a smaller portion of farm
income each year, while larger farms
have been increasing in relative impor
tance in both numbers and share of
cash receipts and net income.
Financing this growth has pushed
farm debt (excluding CCC loans) to A!
a level above $60 billion, or 2.5 times
the 1960 debt and 5.5 times the 1950
level. Part of this increase is due to the
higher costs of land, machinery, and
livestock. But farmers are also financ
ing a larger proportion of their total
operations than in the past.

Get to know Lolita Hansen.
Portfolio management
is her specialty.
Portfolio management takes a great deal of
knowledge, skill, experience and a good
“ feel” for what’s right. Or wrong. But these
are the kinds of challenges some people thrive
on. And these are the kinds of people who
make the best correspondent bankers.
People like Lolita Hansen.
With more than 26 years’ experience, she
knows her business. Inside and out. And can put
that knowledge to work. For you. If her specialty
can be of special help to you, call Lolita.

COLORADO
NATIONAL BANK
17th and Champa, Denver, Colo. 80202
Phone: (303) 893-1862

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Federal Reserve Bank of St. Louis

N orthw estern

Banker,

August,

1977

IT’S NOT H EA V Y .. .
IT’S OUR BUSINESS
Take a load off your mind and let
U.S. National Bank help you solve
your banking problems. We under
stand your individual needs &nd are
experienced in figuring out how to
make our services work best for you.
We help lighten the load for nearly
300 banks in 10 states.
402 536-2077

★★★
U.S.

NATIONAL

BANK

N o rth w este rn B a n k e r, August,

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

1972

OMAHA

63
according to President Duane W.
Acklie.
Mr. H e r b o 1sheimer is a grad
uate of W a y n e
State College and
Northeast V o c a
tional Technical
School, and is a
Vietnam veteran.
He joined the
^
bank in Apiil ot j H E R B O LS H e i m e r
this year, having
previously been associated with Allis
Chalmers of Milwaukee, Wis.

Nebraska
MAYS
R. E. EMMETT

P re s id e n t

W . H. O ST ER B E R G

E x e c . M g r.

A ra p a h o e
O m aha

Broken Bow S ta te B ank
A n n ou n ces B u ild in g P lan s
T> LANS for a new building program
for the Broken Bow State Bank
in Broken Bow were recently an
nounced by Sam Bailey, president.
Bank Building Corporation is the con
sultant for the new project and Wil
burn “C.” McCormick, an associate of
Bank Building, is the architect.
The project involves the construc
tion of a completely new facility on the
existing site without interrupting nor
mal business.
The first phase of the project will
include moving to temporary quarters
in the theater building next door to the
bank and the construction of a vault
adjacent to the theater.
The present quarters will then be
demolished and new quarters con
structed around the vault on the pres
ent site.

The theater building to be used as
temporary quarters will then be demol
ished and replaced with complete park
ing and drive up facilities.
The contemporary design has a
western motif. The exterior is a rustic
brown face brick with a wood timber
stripping.
The check desks from the original
banking facility will be utilized in the
new interior, blending the bank’s al
most 75 years of history with the new
contemporary design. A sloping wood
ceiling is angled over the tellers area.
The interior includes four teller fix
tures (expandable to four) of red oak.

B ank o f N o r fo lk
N am es A u d ito r
James Herbolsheimer has been
elected auditor at the Bank of Norfolk,

B ank P r o m o tes T w o
Donald McMullen has been named
senior vice president, and Robert H.
Everett was promoted to vice president
at the First National Bank of Bellevue.
Mr. McMullen, formerly vice presi
dent, is manager of the bank’s mort
gage loan department. Mr. Everett is
manager of the installment loan de
partment and is assistant commercial
loan officer. He was formerly an as
sistant vice president.

S id n ey B a n k er D ies
James Brumfield, a well-known Sid
ney banker, died at an Oshkosh hospi
tal recently following a heart attack.
Mr. Brumfield, 40, was vice presi
dent and cashier at the Sidney Na
tional Bank.

.......---------------------

EXTERIOR design of the new fa c ility planned fo r the Broken Bow State Bank is pictured at left. The in te rio r is pictured in the
sketch at right, fea tu ring a sloped wood ceiling over the te lle r area.

1972 N ebraska G roup M eetings
Group
6
4
5
3
2
1

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

Date
Sept.
Sept.
Sept.
Sept.
Sept.
Sept.

19
20
21
26
27
28

Place

Site

Scottsbluff
McCook
Kearney
Norfolk
Fremont
Lincoln

Elks Club
Elks Club
Holiday Inn
Elks Club
Valley View Country Club
Radisson-Cornhusker Hotel
N orthw estern

Banker,

August,

79 7 2

Jo h n s o n has resign ior agricultural loan officer and head
ed as executive vice president of of the ag loan department. He is a rec
the Omaha National Bank to become ognized expert in agricultural and com
senior vice presi mercial lending, having taught ag lend
dent of the Union ing at the University of Wisconsin
National Bank in Graduate School of Banking and is
Springfield, Mo. presently teaching Commercial Lend
Union Nalional is ing at the University of Colorado
Southwest M i s- Graduate School of Banking.
* * *
souri’s l a r g e s t
John
A.
Miller
andHoward A. Nel
bank, with total
assets of $130 son have been named vice presidents
at the United States National Bank,
million.
i 4
heading a list of promotions and of
Mr.
Johnson
is
R. E. JO H N S O N
ficer
appointments announced by Pres
head of Omaha
National’s commercial banking divi ident Edward W. Lyman.
sion consisting of five departments: in
ternational, mortgage loan, commercial
installment loan, agricultural lendingcorrespondent banking, and com
mercial loan. He is also chairman of
the computer priorities committee,
chairman of the loan policy commit
tee, a member of the investment com
mittee, and a member of the executive
management committee.
J . A . M ILLER
H. A . N E LSO N
He joined Omaha National in 1957
after serving 10 years with a major life
Mr. Miller has become manager of
insurance company. Since he has been U. S. National’s investment depart
with the bank he has been senior com ment. He joined the bank in 1967 as
mercial loan officer and head of the assistant trust officer. Prior to that he
commercial loan department, and sen- was with Woodmen of the World In-

obert e.

MUNICIPAL BONDS
Chiles, Heider &Co., I nc.
MEMBER NEW YORK STOCK EXCHANGE , INC.
1300 WOODMEN TOWER
OMAHA, NEBRASKA 68102 ■ (402) 346-6677
O th e r O ffic e s L o c a te d in

Lexington, Nebraska
N orthwestern

B an ker, August,

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

1972

•

Vermillion, South Dakota

surance Co. as a senior security analyst
and assistant mortgage loan officer
manager.
Mr. Nelson becomes manager of the
bank’s mortgage loan department in
the loan division. He joined the bank
in 1965 and has held titles of assistant
cashier and assistant vice president.
Lee J. Bachand, Robert R. Culver,
and Eugene D. Exceen were named
assistant vice presidents. Mr. Bachand,
formerly assistant cashier, joined the
bank in 1965. He is head of the data
processing sales section. Mr. Culver is
a loan officer in the mortgage loan de
partment. He joined the bank in 1964.
Mr. Exceen, who also joined the bank
in 1964, is systems sections manager
in the data processing services depart
ment.
Several promotions were made in
the bank’s trust division. Donald L.
Jorgensen, manager of trust opera
tions, was named trust operations of
ficer. He began with the bank in 1952
as a commercial teller, and has since
held positions in the stock transfer sec
tion, accounts service section and trust
department.
Ben W. Stanislav was named trust
officer. Mr. Stanislav, who manages
the tax department, came to the bank
in 1969. Prior to that he had served
as staff auditor for two public account
ing firms in Omaha.
Also in the trust division, Paul D.
Kadavy and Gan R. Oloff were named
assistant trust officers, and Larry D.
Loneke was appointed assistant trust
operations officer. Mr. Kadavy has
been trust administrator since he com
pleted the bank’s management trainee
program in 1970. Mr. Oloff is account
administrator in the trust division. He
has been with the bank since 1960. A
Mr. Loneke, who has been with the
bank since 1963, is assistant manager
of trust operations.
In the operations division, Edmund
L. Arkfeld, F. Dale Johanson, Ann
Lament, Edward Ostransky and An
thony M. Payne were named assistant
cashiers.
Mr. Arkfeld is manager of the
bank’s accounting department. He was
formerly a credit analyst in the loan
services department.
Mr. johanson is a sales representa
tive in the data processing services de
partment.
Miss Lament, who has been with the
bank 29 years, is teller manager at the
bank’s main office.
Mr. Ostransky has been manager of
the Bank Cash Center and its drive-

F irst Forecast.
Sometimes you have a commercial customer who
would like a preview of the financial future
of his business.
Our Commercial Loan Division can provide it for
you. With First Forecast...a computer-supported
program designed to quickly and inexpensively
provide your customer with the benefits of
sophisticated financial planning.
With First Forecast, your customer can explore
the impact various factors will have on the
future of his business.
It can be used to pre-test management decisions.
Run through alternate money plans. For next
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Obviously, it can be very helpful to you in
making loan decisions.
For complete information on how First Forecast
can benefit you and your customer, write or call
our Commercial Loan Division. (402) 471-1222.
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to provide.

A margin
of difference
F IR S T
N A T IO N A L
BANK
L IN C O L N
Box 81008 —Lincoln, Nebraska 68501 Member, F.D.l.C.

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Federal Reserve Bank of St. Louis

N orthw estern

B anker,

A ugust,

1972

Nebraska News

Completion of the new bank is
scheduled for spring, 1973. A.S. Battiato Construction Company is the gen
eral contractor.
* * *
J. Peter Jeffrey, president of West
Omaha National
Bank, announces
that William A.
Waldie has joined
the staff of the
bank, in charge
of new business
development.
Active in the fi
nancial field over
17 years, Mr.
W . A. W ALDIE
W a l d i e is an
Omaha native,
* * *
Loans at Omaha’s seventeen com
mercial banks showed an increase of
22.5 per cent on June 30 compared
with a year ago, and deposits showed
a 9.9 per cent increase for the same pe
riod.
Kermit Hansen, executive vice presi
dent of the U. S. National Bank, said
the percentage hikes are indicators “of
a strong, steady economy.”
Loan volume rose from $667 in
mid-1971 to $817 million in mid-1972
for the Omaha Banks. Total deposits
increased in the same period from
$1.02 billion to $1.12 billion.
Chemical Bank of New
nation’s sixth largest, has
the right to copy the data
system developed by First
sources, Inc., of Omaha to

York, the
purchased
processing
Data Re
handle the

billing of Master Charge customer ac
counts.
The FDR operation is a series of
about 50 computer programs used to
handle accounting for credit card cus
tomers.
FDR was formed as an independent
corporation by several current FDR
executives and the MidAmerica Bankcard Association, MidAmerica Bankcard was organized in 1969 by seven
banks, including the Omaha National
Bank and the U.S. National Bank of
Omaha.
SUPREME COURT . . .
(Continued from page 21)
and that Colburn ‘was never in a posi
tion to get anything done.’ He charac
terized the defendant as ‘not much
more than a figurehead cashier.’
“At no time did the Department of
Banking suspect that there had been
an illegal diversion of funds. The de
partment thought Davenport was a
poor loan man and that his loan policy
would eventually destroy the bank.
This is the same matter that concerned
the defendant and caused him to call
the Deputy Director of Banking on
May 19, 1964. . .
“. . . As we view the record, a rea
sonable trier of fact could find that the
plaintiff had failed to prove that the
loss was caused by negligence of the
defendant in failing to detect and dis
cover the embezzlement by Richard L.
Davenport.
“It is unnecessary to consider fur
ther the issues raised by the cross
appeal.

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1972

“The judgment of the district court
is reversed and the cause remanded
with directions to reinstate the verdict
and dismiss the action.”
justice J. Clinton wrote a dissenting
opinion which stated:
“I respectfully dissent. The record 1
believe dislcoses that the defendant
Colburn, as a director of the bank, ex
ercised not the slightest degree of care
to prevent or detect defalcations such
as here occurred. The record shows
that from the time he first became a
director he abdicated completely his
responsibilities as such and left the en
tire, complete, and absolute control of
the bank in the hands of the bank man
ager. He did not in all those years even
suggest a director’s audit with inde
pendent random verification of ac
counts and loans. He did not suggest
any of the internal controls which
might prevent, discourage, or lead to
the detection of defalcations. A bank
directorship is not an honorary posi
tion. Depositors and stockholders rely
upon the directors to fulfill their obli
gations. Directors who do not wish to
exercise their responsibilities should
resign if they wish to avoid responsi
bility for their defaults. Colburn was
negligent as a matter of law because
he did not exercise even slight care.
Gibbons v. Anderson, 80 F. 345;
Gamble v. Brown, 29 F. 2d 366, Cert,
den. 279 U. S. 839, 49 S. Ct. 253, 73
L. Ed. 986; Bank of Commerce v.
Goolsby, 129 Ark. 416, 196 S. W.
803; 25 A. L. R. 3d, Directors — Lia
bility for Defalcations, S. 18, p. 1011;Atherton v. Anderson, 99 F. 2d 883;
Anderson v. Bundy, 161 Va. 1, 171
S. E. 501; Lippitt v. Ashley, 89 Conn.
451, 94 A. 995.
“I do not suggest, of course, that
one director alone can take appropri
ate precautions without the joinder o fT
the majority of the directors. Proksch
v. Bettendorf, 218 Iowa 1376, 257
N. W. 383. In this case the record
shows that all of the directors abdi
cated their responsibilities. Under
these circumstances whether the de- a
fendant could have done anything ef
fective to prevent or to earlier detect
the defalcations is open to debate..
Therefore, whether the defendant’s
negligence was the proximate cause of
the bank’s losses presented a jury ques
tion. The trial court properly set aside
the verdict and on retrial only the
questions of proximate cause and the
amount of damages, if any, would be
jury questions.”— End

Call Frank S M in our
Agricultural Department
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p ic t u r e d b e l o w . .. a t (4 0 2 ) 7 3 4 - 1 2 3 4 .

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B O

Northwestern
National
Bank
Omaha, Nebraska

Frank Sibert

Bill Graves

Vice President

Omaha, Nebraska
402-734-1234
Paul Mauer

Dan Rishel

Vice President

Asst. Vice President

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W E’RE
RESOURCEFUL!

. . . resourceful
enough to provide
for all your co rre
spondent banking
needs. Get to know any one of
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BANK
BANKERS TRUST
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71
dealers who are not members of the
Midwest Stock Exchange and could
not trade on the Exchange in the stock
of Hawkeye Bancorporation while it
was listed on the Regional Exchange.

Iowa
NEWS
T. H. HUSTON

P re s.,

T o y C ontrol C hange

Colum bus Junction

A. E. LINDQ UIST, JR . Ex. V .P . Des M oines

A r t L in d q u ist A n n ou n ces R e tire m e n t;
Iow a C om m ittee Seeks R ep la cem en t
RTHUR E. Lindquist, Jr., execu
A
tive vice president and secretary
of the Iowa Bankers Association, an

cient, and adequate office space was
provided. All of this, under Mr. Lind
quist’s direction, has been progressive
and innovative.
After about December 1972, Art
and his wife, Dean, will make their
home at 1787 San Pablo Drive, Lake
San Marcos, north San Diego county,
California 92069.

J. William Van Dyke, chairman of
the board of The Toy National Bank,
Sioux City, has announced that there
has been a change in the controlling
interest of the bank.
Founded in 1912 by James F. Toy,
the bank has remained under the con
trol of the Toy family since its organ
ization. Mr. Van Dyke, who is the
grandson of the founder, and his son,
John W. Van Dyke, Jr., a vice presi
dent of the bank, have purchased the
interest of the other family members.
Management changes were an
nounced last January, and L. H. Olson
was advanced to president and chief
executive officer at that time. The bank
management plans an expansion pro
gram soon. It is anticipated that Toy
will plan to build a new building in
downtown Sioux City.

nounced to the Council of Administra
tion last month that he plans to retire
from his position on or about Novem
ber 15, 1972. He will not be a candi
date for re-election at the Iowa Bank
ers Convention in October.
Mr. Lindquist came to his present
position in November, 1966, after T ru st R ep N am ed at
serving with the correspondent bank N a tion al o f W aterlo o
department of the American National
The appointment of George D. Scul
Bank and Trust Company, Chicago. ly, Jr., as trust representative at the
Previous to his association with Ameri National Bank of Waterloo has been
N o rth w est to P u rch a se
can National, he was a vice president announced by R.
B e tte n d o r f B an k & T ru st
in the correspondent bank department L. Kilgore, presi
Henry T. Rutledge, chairman of
of The Merchants National Bank, dent of the bank.
Northwest Bancorporation, Minneapo
Cedar Rapids. He has had a close as
Mr. Scully, a
lis, and Ralph U. Heninger, president
sociation with Iowa banks and bankers native of Water
of
Bettendorf Bank & Trust Co., have
for some 25 years.
loo, r e c e n t l y
announced that an agreement in princi
The Council of Administration has graduated f r o m
ple has been reached respecting a pro
named a five-man committee to select the Drake Uniposed exchange of stock of the bank
a successor to Mr. Lindquist. They v e r s i t y L a w
for stock of Northwest Bancorpora
are John Chrystal, president, Iowa School, and was
SCULLY, JR.
tion. Mr. Heninger stated that the
Savings Bank, Coon Rapids; LeRoy admitted to the
board of directors of the bank has ap
Mohr, executive vice president, Miles Iowa Bar in June.
Savings Bank; Don Noller, president, He had completed his undergraduate proved recommending to the stock
First National Bank, Evansdale; Jack work in Business Administration at the holders of the bank their favorable
consideration of the exchange.
Nielsen, vice president, First National University of Iowa.
It was stated that the ratio of ex
Bank, Mason City, and Ferd E. Skola,
change would probably be in the
president, Farmers Savings Bank, Ka A ss’t T ru st O fficer
Maxine Bartz has been named as neighborhood of 1.3 shares of North
tana.
Mr. Lindquist succeeded Frank sistant trust officer of the First Na west Banco stock for each share of
Warner as secretary of the association tional Bank of Council Bluffs. Mrs. stock of the bank, and noted that ap
— and in doing so — he filled the Bartz has been with First National for plication by Northwest Banco to make
the exchange would have to be ap
shoes of a man who had headed the seven years.
proved by banking regulatory authori
Association since 1916 . . . a 50 year
H
aw
k
eye
S
tock
ties.
span. During Mr. Lindquist’s term of
office, the Iowa legislature started an Off M idw est E x ch a n g e
Paul H. Dunlap, president of Hawk- 5 0 Y ear B a n k er H o n o red
nual sessions, which with the multitude
A party was held recently at the
eye
Bancorporation, Des Moines-based
of other changes in the banking busi
Audubon
Golf and Country Club,
registered
bank
holding
company,
an
ness, doubled the load for the secre
nounced that as of July 17, 1972 Audubon, in honor of A. A. Kruse, ex
tary’s office.
In the past six years, changes have Hawkeye Bancorporation is delisting ecutive vice president of the First State
occurred in the staff and committee or from the Midwest Stock Exchange and Bank, Audubon. Mr. Kruse, who is
ganizations and the funding of the As will thereafter be traded on the over- celebrating his fiftieth year with the
bank, was presented with a golf cart.
sociation’s activities. The Association the-counter market.
Approximately
50 local bankers and
Hawkeye asked to delist and have
was incorporated and the insurance ac
bankers
from
Omaha,
Des Moines and
its
stock
traded
over-the-counter
be
tivity was placed into a separate, selfsustaining entity. New, modern, effi cause of the large number of securities Chicago attended the party.

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Federal Reserve Bank of St. Louis

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1972

I owa News

SPEARHEADING the Iowa Independent Bankers convention were, from left: Pres. Dean
A. Knudson, Iowa pres.; H. L. Gerhart, Jr., pres., Independent Bankers Association of
America, and Robert Dixon, Iowa state director.

In d ep en d en t B ankers Seek More
R estrictio n s On H oldin g C om panies
B y MALCOLM FREELAND
P u b lish er

URTHER restrictions of multi
bank holding companies will be
sought in the 1973 session of the Iowa
legislature.
This fact was clear, as over 300 del
egates attended the first annual con
vention of the Iowa Independent
Bankers in Okoboji last month.
Two general business sessions were
loaded with speakers oriented to the
unit banking system. It was not the
time or place for advocates of either
branching or multi-bank holding com
panies! One speaker — Jack Edge,
president, State Savings Bank, Baxter,
even suggested that Iowa independents
resign membership in the Iowa Bank
ers Association and throw all of their
support to the newly-organized Iowa
Independent Bankers, headed by Pres
ident Dean A. Knudson, president,
University Bank and Trust Company,
Ames.
Mr. Knudson was re-elected as pres
ident of the Iowa Independents. He
will serve with the same 20-member
executive council, and the other offi
cers of the Association will continue
in their same capacity. They are: vice
president, Don Kirchner, president,
Peoples Trust and Savings Bank, Riv
erside; secretary, G. M. Barnett, Jr.,
president, Guthrie County State Bank,
Guthrie Center, and Christy Arm
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Federal Reserve Bank of St. Louis

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strong, executive vice president, Amer
ican Trust and Savings Bank, Du
buque.
Iowa Independent Bankers have re
solved that multi-bank holding com
panies should be individually limited
to a lower percentage of total Iowa
bank deposits (now 8 percent) and the
collective holdings of multi-bank hold
ing companies should not exceed 50
per cent of the total Iowa bank de
posits. Furthermore, they have urged
the superintendent of banking to take
a position with the Federal Reserve
Board on each application for enlarge
ment in size or number of multi-bank
holding companies.
Independent banking vs. holding
companies was the major discussion
topic of the convention, and John

KEY ADDRESS was given by Sen. Jack
M iller, right, shown w ith Pres. Dean A.
Knudson.

Bowyer, professor of finance, Washington University. St. Louis, wasted no
time in setting the pattern by posing
this question:
“ Is it possible to receive an offer of
double book value for your bank and
end up receiving as little as 53 per cent
of the book?
Mr. Bowyer claimed that this was
exactly what was happening in a num
ber of acquisitions being made by multi-bank holding companies in Florida.
He gave the example of First of Orlan
do Corporation and labeled it “instant
insanity.” He showed that the holding
company’s stock was now 28 times
earning or 3.75 times book . . . and in
dicated that if First of Orlando offered
double book for a unit bank, the
owners would actually receive 53 per
cent of book when a stock trade was
made! He reminded delegates that the
investment community was interested
in earnings per share and rate of
growth — and not book value.
Holding company banking in Flor
ida was further described by Walter
L. Law, executive secretary. Independ
ent Bankers of Florida. Mr. Law described situations where unit banks
were denied access to participations
with city correspondent due to pressure
from multi-bank holding companies.
An answer to the problem came
from Dwight Willard, president, Farmers Trust & Savings Bank, Spencer,
who described how his bank was working with other community banks outside of the immediate trade area of
Spencer in arranging loan participations.
President’s Address
In his keynote address, President
Knudson traced the history of inde
pendent banking and the formation of
the Iowa Independent Bankers. He re
minded delegates that Iowa independent banks that a well-managed small
or medium sized independent bank can
compete in its own home market
against all comers, whether they be
from outside branches under a liberalized branching law or from units of a
holding company. He further suggested
that if the experience and innovative
management is present and if the basic
desire of the bank is to serve its mar
ket, then it really should have very littie, if anything, to fear from outside
competition.
Banking Bill Panel
Stanley R. Barber, past president of

N
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A m e ric a n T ru s t and Savings Bank
DUBUQUE, IOWA

STATEMENT OF CONDITION
June 30, 1972

ASSETS

Cash
U. S.
U. S.
U. S.

..............................................................
Government Securities ....................
Public Housing B o n d s....................
Agency B o n d s....................................

$10,360,809.98
$16,651,601.89
3,781,778.13
4,228,406.98
24,661,787.00
4,549,685.98
112,500.00
3,500.000.00
35,337,745.90
1,319,418.19
18,992.06
959,919.26
$80,820,858.37

Municipal Bonds ........................................
Federal Reserve Bank Stock ....................
Federal Funds S o ld ....................................
Loans ...........................................................
Bank Premises & E q u ip m e n t....................
Customers Liability on Letters of Credit
Accrued Interest & Other Assets ............
LIABILITIES

Capital Debentures .
Equity Capital:
Capital Stock ..
Surplus ..............
Undivided Profits

850,000.00
1, 000 , 000.00

2,750,000.00
1,351,990.34
5,951,990.34
348,878.24
18,992.06
365,489.61
732,154.03
1,101,975.84
72,301,378.25
$80,820,858.37

Reserves ...................................................
Liabilities under Letters of Credit
Provision for Taxes, Interest & Expense
Unearned Discount on Loans ..............
Other L iab ilities....................................
Deposits ...................................................
j . b r u c e M cD o n a l d
D. B. CASSAT
H onorary Director— Am erican Vice-P resident & S ecretary
A. Y . McDonald Mfg. Co.
Finance Syste m s, Inc.
LO U IS H. PFOHL
PAUL D. DALE
The Fischer Com panies
Chairm an of the Board—
♦CHARLES J. SCHRUP
Therm olyne Corp.
Exe cu tiv e V ice President
D. W . ERNST
N ICH OLA S J. SCHRUP
Chairm an of the Board
President
M AURICE A. FRAHER
R. W. STEELE
Retired Director— Deere &
President— Interstate P ow er
Co.
Com pany
C. P. FRÖMMELT
H. W . W AHLERT
Chairm an of the Board—
Chairm an of Board—
Frömmelt Industries
Dubuque Packing Co.
ROBERT J. GERSTEN BERGER
V ice President— Deere & Co. ROBERT C. W AHLERT
President— Dubuque
♦ R O Y F. GLAB
Packing Co.
Ex e cu tiv e Vice Pres, and
C YR IL H. W IS S EL
Secretary
President— H & W Motor
TRUST DEPARTMENT
W . N. GLAB
Presiden t— Morrison Bros. Co,
E x p re ss Co.
CHARLES J. SCHRUP
Exe cu tiv e V ice President and N. J. GRETEM AN
Special Consultant
Trust O fficer
COURTLAND HILLYA RD
LEO J. M EIER
President— M idland
V ice President and
Laboratories
Trust O fficer
♦ROBERT G. HÖLSCHER
H O N O R A R Y DIRECTORS
V ice President
BOARD OF DIRECTORS
OTTO F. HENKER
M. L. KA PP
R etired
Chairm an oi Board,
♦CHRISTY F. ARM STRONG
Interstate P ow er Com pany C. J. KLEIN SCHM IDT
Exe cu tiv e V ice President
Retired
W . J. KLAUER
♦FRANK H. BERTSCH
♦Member of the Trust
P residen t— K lauer
President— Fle x stee l Ind.,
Com m ittee
M anufacturing Co.
Inc.

OFFICERS

D. W . ERNST
Chairm an
Chief Exe cu tiv e O fficer
N ICH O LA S J. SCHRUP
President
CHRISTY F. ARM STRONG
E x e cu tiv e V ice President
R O Y F. GLAB
Ex e cu tiv e Vice President and
Secretary
Senior V ice Presidents
W . G. BAUM HOVER
LEO F. KAN E
ROBERT G. SCOTT
JAM ES L. R ILEY
C ashier and Asst. Secretory

A m e ric a n T ru s t
and Savings Bank
DUBUQUE, IOWA

Member FDIC, Federal Reserve

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System

B anker,

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1972

I owa News

COMMODORE of the Iowa Lakes Area
Navy presents special honor to Pres.
Dean A. Knudson.

the Independent Bankers Association
of America, and president, Wellman
Savings Bank, served as moderator of
a panel discussion on the Omnibus
Bank Bill passed by the 1972 Iowa
legislature. He indicated that the bill
was not the best — but it was more re
strictive for multi-bank holding compa
nies than if the independent bankers
had sat on the sidelines. Comments
were made by four panel members as
follows:
Jack Rigler, president, Central State
Bank, Muscatine, described the high
lights of what the bill does and in do
ing so, he asked if it is constitutional
to allow Northwest Bancorporation to
be the only out-of-state exception in
acquisition of more Iowa banks.
John Chrystal, president, Iowa Sav
ings Bank, Coon Rapids, described the
likely effects of the bill. He thought
that the exception made for Northwest
Bancorporation will not have any great
effect unless some judge decides that
what is good for Banco is good for all
out-of-state holding companies. Then,
he said, it would have a massive effect.
Mr. Chrystal said it is conceivable that
the $2 or $3 million banks may have
to move to county seat towns and op
erate an office in the smaller commu
nities . . . particularly where there is
only one bank in a county seat now.
He refuted the idea set forth by some
holding companies that the credit
needs of the state are not well taken
care of now, and he suggested that

growth of holding companies will be
dependent on their ability to increase
net income. He predicted a decline in
the number of charters, a reduced
number of new charters, and a reduc
tion in premiums paid for suburban
banks — all due to the new bill.
Oliver A. Hansen, superintendent of
banking, warned bankers that they
should be more interested in legislation
before it is passed, rather than waiting
to complain after the bill is on the
books. He discussed the urban com
plex phase of the bill, warning that aplicants for future parking lot offices
must show that there will be adequate
parking. He also warned that a present
location may be outmoded in 10 years
— so applicants should consider this
when making a substantial capital in
vestment. Looking at multi-bank hold
ing companies, Mr. Hansen said that
since they must make an offer to all
stockholders, many acquisitions may
not be profitable.
Jack Edge, president, State Savings
Bank, Baxter, threw the real bomb at
delegates. Mentioning that he was
speaking only for himself, he recom
mended that independent bankers form
their own state organization and pos
sibly resign from the Iowa Bankers As
sociation. He further recommended
that independent bankers do business
with city correspondent banks that are
independent in nature. He outlined the
deposit picture for the six major multi
bank holding companies in Iowa, men
tioning that as of the convention they
controlled 22.67 per cent of the state’s
total deposits.
Senator Jack Miller
“One place that can stand reform
better than anyplace else is the Con
gress of the United States.”
This was the statement made by
U.S. Senator Jack Miller, who spoke
at the opening business session. Sena
tor Miller described the massive spend
ing binge, and labeled it as a disease
of epidemic proportions.
H. L. Gerhart, Jr., president of the

SPEAKERS included, from left, W alter
Law, Don Kirchner, and Richard Berglund.

Independent Bankers of America, and
president, of the First National Bank,
Newman Grove, Nebraska, described
the successful fight against multi-bank
holding companies conducted by his
home state. He criticized the permis
sive tactics followed by regulatory
agencies and particularly the Federal
Reserve Board of Governors. He at
tacked Gov. George Mitchell for say
ing that the present banking structure
had outlived its usefulness as far as
meeting farm credit needs. He again
challenged the debt-equity guidelines
established by the Fed for bank stock
purchasers. In conclusion, he congrat
ulated the Iowa group for starting its
own organization.
Convention Site
Okoboji proved to be an outstand
ing location for the Iowa Independent
Bankers, and they intend to return
next year. Boat rides, golf, and out
door barbeques occupied the “spare”
time for delegates and their wives.
Robert Dixon, Iowa director, Inde
pendent Bankers of America, served
as co-chairman of the golf committee,
along with Keith Campbell, president,
Citizens State Bank, Sheldon. (Keith
didn’t let the trophy for low net get '
away — and won it by firing a 71.)
Joe Picken, Jr., vice president, First
National Bank, Ames, won the trophy
for low gross. — End.

7 5 th A n n iv ersa ry
The Fairbank State Bank, Fairbank,
celebrated its 75th anniversary recent
ly with an open house, which was at
tended by more than 550 persons. The
celebration included drawings for spe
cial door prizes.

N am ed to B oard

PANELISTS on Iowa Independent Bankers program included, from left: Jack Rigler, John
Chrystal, Stan Barber, Oliver Hansen, and Jack Edge.
N orthw estern

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Federal Reserve Bank of St. Louis

1972

The Dubuque Bank & Trust Com
pany has announced that Charles E.
Stoltz has been elected to the board of
directors of the bank. Mr. Stoltz is vice
president of the Dubuque Packing
Company.

We valuf the roots we put down ninety years ago when cattle
men made The Drovers their headquarters bank in Chicago. We.
pioneered in crediting their cash to banks in theif^Tiome towns.
Thus was established a mutual exchange of trust and integrity
with banks throughout the Midwest. We’ve helped each other
grow. We know the sort of service they need, be it loans and
rlines, clearings and transit services, bond and investment
rtfolios, or other banking situations that call for experienced
help. Also, we season our correspondent service with plenty of
fresh, creative thinking and just the right amount of personal
attention. Yessir! As a correspondent bank, you can be sure of
driving a better deal in Drovers Country.

Building More Business
for Midwest Banks
since 1883

Thet) ravers

National B ank of Chicago

47th & Ashland Ave. • Chicago, Illinois 60609 • Phone (312) 927-7000
»

Member Federal Deposit Insurance Corp. • Member Federal Reserve System
• Member Chicago Clearing Flouse Association
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Iowa News

S econ d Y ear C lass , 1972 A g r ic u ltu r a l C red it School

1st. row: James C. Stock, Farmers & M erchants Savings, Lone Tree; Jerry N. Trudo, M erchants National, Cedar Rapids; Gene
G. Karstens, First State, Audubon; John H. Collison, Iowa D epartm ent of Banking, Des Moines; Conway Norm an, The Omaha N ation
al, Omaha, Nebr.; Joe L. Parrish, Jr., Federal Reserve Bank, Ames; Ronald D. Harder, First National, Jackson, Minn.; Fred L. Axmear, FDIC, Mason City; Gary A. Liess, FDIC, Kearney, Nebr.; Robert D. Gulling, Farmers Savings, M itchellville; Ross W. Stuedem ann, First National, Clinton
2nd. row: Jim Arendt, Peoples Savings, Montezuma; Thomas M atthaidess, Omaha National, Omaha, Nebr.; Bob Swedlund,
C om m unity State, Paton; Elm er J. Draker, Hills Bank & T rust Co., Hills; Don Rodgers, H oughton State, Red Oak; Harold T hom p
son, Randall State, Randall; Jim Chelesvig, First State, Belmond; D:ck Gray, Area Ext. specialist, Ft. Dodge; Calvin Spencer, State
Bank & Trust Co., Council Bluffs; Stephen B. Tudeen, Farmers State, A lb urn ett
3rd. row: Larry W angrud, U.S. Treasury, Norfolk, Nebr.; Robert H. Lage, N orthw est Bank & T rust Co., Davenport; Roger Auestad, Story County State, Story City; Ron Kocher, Cresco State, Cresco; Richard Mikelson, H u m bo ldt T rust & Savings, H um boldt;
Robert Engel, Security State, Sheldon; James L. C uttell, George State, George; Roger W. Schm idt, Palo Alto County State, Ayreshire;
Don M. Schuchart, Benton County Bank and Trust Co., Vinton; Max Vande Lune, Poweshiek County National, G rinnell; Robert M.
Sneden, Spencer National, Spencer; Glen Sm ith, National Boulevard Bank, Chicago, III.; Roger Underwood, G uthrie County State,
G uthrie Center
4th. row: Bill Speak, Bank of Neosho, Neosho, Mo.; Stan Honken, Citizens State, Clarinda; je rry Johnson, Tama State, Tama;
Jim Rhodes, First C om m unity Bank & Trust, Traer; Ray A. Brown, Home T rust & Savings, Osage; M onte R. Cue, Farmers State
Savings, Independence; Norm Gerdes, Maquoketa State, Maquoketa; Lewis White, FS Services, Inc., Bloom ington, III.; Wallace
Groeneweg, Citizens State, Sheldon; Alan Johnson, Central State, Elkader; Don Houg, Central State, Elkader; George Teipe, Fed
eral Reserve Bank, Oak Park, III.; Craig Riggs, Tinley State Savings, Tinley Park, III.
Not pictured: Fred Bement, State Bank o f Vinton, Vinton; Jack Shemat, Central Trust and Savings, Cherokee, and Jim Stockwell, First National, Bayard, Nebraska.

M ortgage B an k ers E lect
Loren Dorr, senior vice president
of the Des Moines Savings and Loan
Association, Des Moines, was recently
elected president of the Iowa Mortgage
Bankers Association at the group’s an
nual meeting at Lake Okoboji.
Earl Youngstrom, president of the
Community State Bank, Clear Lake,
was elected vice president, and Charles
J. Drees, vice president of Iowa Securi
ties Co., Des Moines, was named sec
retary-treasurer.
Those elected to the board of gover
nors are: John Benoit, Equitable Life
of Iowa, Des Moines; Dean Hannam,
Valley Bank & Trust Co., Des Moines,
Larry Hill, Iowa Securities Co., Cedar
Rapids; William Landholt, lowa-Des
Moines National Bank, Des Moines;
Larry Moser, Peoples Mutual Savings
and Loan, Waterloo, and James A.
Dowing, Security National Bank, Sioux
City.

T ru st G roup E lects
Joe D. Young, senior vice president
and senior trust officer of the Central
National Bank & Trust Co., Des
Moines, was elected president at the
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Federal Reserve Bank of St. Louis

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recent annual meeting of the Iowa
Trust Association in Burlington.
Other newly elected officers of the
association are: John R. Burrows, vice
president and trust officer of Bankers
Trust Co., Des Moines, vice president;
Jack R. Schreiber, assistant vice presi
dent and trust officer, Central National
Bank, Des Moines, secretary-treasurer,
and Dee Frost, senior vice president,
lowa-Des Moines National Bank, Des
Moines, chairman of the executive
committee.

S to ck p o rt B an k S o ld
It was announced that two Koekuk
bankers, Bill Logan and Fred O’Brien,
have purchased controlling interest in
the Iowa State Bank, Stockport, from
Hugh and Mildred Newman. Mr.
Logan is president and Mr. O’Brien
is vice president and cashier at the
State Central Savings Bank in Keokuk.
Mrs. Newman is president of the
bank and has been with the bank since
it was organized in 1928. Her father,
Sam Watkins, was one of the or
ganizers, and served as president from
1932 to 1971. Mrs. Newman has
served as a director of the bank since

1956, and succeeded her father as
president in 1971.
Mr. Newman has served as a direc
tor of the bank since 1936 and has
been cashier of the bank since 1957.
Mr. and Mrs. Newman will both re
main active in the bank as well as in
the Newman Insurance Agency, which
was included in the stock transfer.

K a lo n a B a n k er H eads
$ 5 6 , 0 0 0 Fund D rive
A local fund drive to raise $56,250
for rebuilding the Chef Quik Co. plant
in Kalona has succeeded, partly due
to the efforts of Ferd Skola, president
of the Farmers Savings Bank, who
headed the drive.
The $56,000 was needed to demon
strate community support for the Chef
Quik Co. before it could be eligible for
$850,000 in government and private
loans. The company’s plant burned
here last February and the town was
in danger of losing its major industry
if funds were not raised.
About 100 area residents were em
ployed at the plant before the fire, and
company officials hope to raise that
figure to 150 by April 1, 1973.

These Iowa Bankers work
with LaSalle in Chicago
to build business for Iowa banks
■ L aS alle’s c o rre sp o n d en t balances continue to
climb in 1972.
Two big reasons are Cy Kirk and Max Roy, two
Iowa bankers who work with LaSalle correspondent
banks in Iowa. These life-long Hawkeyes know Iowa
and Iowa credits.
They keep our business growing by helping busi
ness grow in the correspondent banks they serve.
If you would like to find out what Cy Kirk or Max

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Roy can do for your bank and for Iowa, call them in
Chicago at (312) 443-2774. Or call at hom e; Cy Kirk
at (815) 398-9521; M ax Roy at (319) 338-5224.

© LaSalle ©
...th e bank on the move
LaSalle National Bank, LaSalle Bank Building
135 S. LaSalle Street, Chicago, Illinois 60690 • Phone (312) 443-2774
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I owa News

NEIL HARL, ISU ag ricu ltural econom ics professor and m em ber of the Iowa Bar, makes
his p o in t about estate planning during the recent cred it school.

D iscuss N ew F in an cin g M ethods a t
27th A n n u a l A g C redit School
M

ODERN-DAY farming technology
has changed considerably from
that used just 20 years ago, so how
does the banker
change his system
and methods to
continually meet
the farmer’s fi
nancial n e e d s ?
Iowa Superintend
ent of Banking
Oliver Hansen, a
Durant
banker,
had some sugges
O . A. HANSEN
tions at the re
cent 27th annual Agricultural Credit
School at Iowa State University.
Speaking to 108 commercial lenders
and bank examiners from Iowa and
near-by states, Mr. Hansen said fi
nancing agriculture requires constant
study, allertness and innovation. As
farmers require larger loans with a
lower ratio of assets to liabilities, bank
ers should be looking for potential
partners to share the risk and loan
volume.
The superintendent singled out the
Farmers Home Administration and the
Intermediate Credit Bank as potential
partners among federal agencies. He
told his audience that Farm Credit Sys
tem agencies are strong competitors
with banks but cooperation with them
might be possible if certain road blocks
Digitized
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Federal Reserve Bank of St. Louis

Î9 7 2

are removed. Bankers can also help
their clients receive credit services that
are currently unavailable at their bank,
through various programs of the FHA.
Do a little investigating.
Life Insurance Companies
Participation with life insurance
companies is another way to assemble
the needed financing for today’s farm
er, Mr. Hansen stated. Unfortunately
many companies are not very inter
ested in making farm loans. “Perhaps
if we can convince them to return a
larger part of their premiums to the lo
cal communities instead of sending it
all out of Iowa, we will be able to work
together.”
Then there are other untapped

sources for credit from outside the nor
mal agricultural channels. The super
intendent cited at least one large bank
that had started a move in this direc
tion and he predicted more would fol
low. This is one of the really promising
ways to assemble new money for farm
loans.
The bank superintendent went on
to urge extra care in managing farm
loans. Get to know your customers
better. Require complete financial
statements that are taken at the same
time each year and consequently can
be compared from year to year. Also
try to get out on-the-farm more often.
Many problems and losses can be
avoided if the banker reads the “signs”
generally apparent by on-the-farm visi
tations.
Term Agreements
The state official also suggested that
the bankers take a new closer look at
term agreements for their preferred
customers. “We need to meet the com
petition of other farm lenders and save
our customers extra trips into town for
small loans. Why make the farmer who
is worth say 150 thousand dollars
make a trip to your office to borrow
an extra thousand dollars for some
thing?”
Lenders might consider setting up
a line of credit in a special account for
specific uses. Then as items come in,
they can be identified with the intended
uses, the official from Des Moines said.
Bankers also need to make term agree
ments for realistic periods of time and
expect the loan to be paid off at the
end of the agreement. Demand that the
wife sign the agreement and provide
for non-payment penalties.
Annual Projections
Mr. Hansen strongly recommended
that bankers urge farmers to make esti
mated annual projections. The phrase

NO, these students at the two week ag ricu ltural cred it school did not com m ute by bus
each m orning. They are taking part in one of several field trips to view farm manage
m ent practices and visit w ith farm ers.

I owa News

coined by the superintendent replaces
the term “cash flow statements,” since
as Mr. Hansen put it, “Farmers have
n’t accepted the cash flow concept.”
One important asset of estimated an
nual projections will be to show the
debt load capacity of your client and
prevent over-extended credit.
The Iowa bank superintendent was
the first of several guest lecturers to
speak during the two week school
sponsored by the Iowa Bankers Asso
ciation and Iowa State University. H.
B. Howell, ISU economist in farm
management, said the school plays a
significant part in the in-service train
ing program for most Iowa banks con
cerned with agricultural lending. Since
1946, the annual sessions have attract
ed 841 enrollees.
The extension specialist said that
during the first year’s session those at
tending are exposed to farm manage
ment, farm appraisal and marketing.
The second year is devoted to agricul
tural credit and economic policy. In
addition, each year agricultural pro
duction problems and guest lecture«
are presented.—End

“G et to know y o u r custom ers. “

school students received hours of estate planning dis
cussion from Neil Harl.

C redit

C o n stru ction B eg in s on
B e tte n d o r f B an k B u ild in g
Construction has begun on the new
office building which will house the
Duck Creek office of the Bettendorf
Bank & Trust Company. The new
building, to be known as the Betten
dorf Bank Building, will include 5,200
square feet of bank space. The remain
ing 40,000 square feet will be sub
leased.
Ralph U. Heninger, bank president,
said that the bank hopes to have the
branch office in full operation by De
cember 1, 1972. The facility will in
clude safe deposit boxes, drive-up tell
ers and walk-in banking services.
There will be a covered climatized mall
for shopping convenience as well as two
cinemas, each seating 300 people.

CREDIT school administrators Herb Howell and Everett Stoneberg flank a speaker at one of the several field trip stops.

P. O . BOX 3 6 4 4

A COMPLETE

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T. M O O RE

Des Moines News
ceremonies
for The Financial Center, the
$21 million, 25-story future headquar
ters for both the Iowa-Des Moines Na
tional Bank and the Des Moines Sav
ings and Loan Association, were held
recently at the construction site at 7th
and Walnut in downtown Des Moines.
Participating in the ceremonies
were: Robert L. Maddox, first vice
president of the Des Moines Chamber
of Commerce, John R. Fitzgibbon,
president of the Iowa Des Moines Na
tional Bank, Richard L. Bryan, presi
dent of Des Moines Savings, Developer
David Murdock, Mayor Richard Ol
son, Des Moines City Councilmen and
local business executives.
The Financial Center, which is
scheduled for completion in late 1973,
will include a 23-story tower over a
two-story base. The area will cover
more than 500,000 square feet, and
will include a 260 car underground
parking garage.
* * *
A new director and four new officer
assignments have been announced at
the Iowa-Des Moines National Bank
by President John R. Fitzgibbon.
Dr. Wilbur C. Miller was elected to
G

r o u n d b r e a k in g

D. N. W ALTHILL

W . C. MILLER.

J . W . D AVID SO N

A. C. BRAGA

the board of directors of the bank. Dr.
Miller is president of Drake Universi
ty, Des Moines, and is a former vicechancellor for academic affairs and
dean of the faculty at the University
of Denver, Denver, Colo.
Frederick D. DeVries was elected
vice president and will head bank of
fice operations. He joined the bank in

We can help you . . .

U N D E R W R IT IN G

Public stock offerings
All bonds

Private corporate placements
Debenture offerings

F. DE VRIES

1968 and since 1970 has been head
of Master Charge.
John W. Davison was named to suc
ceed Mr. DeVries as managing officer
of Master Charge. He has been respon
sible for the operations section of Mas
ter Charge since joining the bank in
1971.
David W. Walthall, operations offi
cer, has been named manager of the
personal banking department. He has
most recently been in charge of special
services in the bank operations divi
sion department.
Alan C. Braga, bond investment of
ficer, was elected cashier of the bank
effective September 1, replacing John
R. Scroggs, who will retire.
C. Tom Moore was named man
aging officer of the bank’s Euclid of
fice. He had been with the Master
Charge Department and had been as
signed to the Euclid office since it
opened in 1969.
It was also announced following a
board meeting that the bank has is
sued a 100% stock dividend.
* * *
Richard C. Lee, chairman of the
board and chief executive officer of
Capital City State Bank, announced
that Richard E.
Sargent has been
elected t o t h e
bank’s board of
directors., Mr. Sar
gent is president
of E. I. Sargent
Quarries, Sargent
Investment Com
pany, Sargent Helicopters, and I &
R E sarg en t
M, Inc.
Sargent, a graduate of East Des
Moines High School, attended Simpson
LEGAL FORMS
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print. Special forms then stocked
for prompt shipment on re-orders.
IOWA LEGAL BLANK
& PRINTING CO.
Box 238, Webster City, Iowa

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When you
need a little help
call us
on our toll free
w ats
number
800 - 362-1615

Correspondent Bank
Department

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Federal Reserve Bank of St. Louis

Central National Bank 8- Trust Company
LOCUST AT SIXTH AVENUE, DOWNTOWN DES MOINES, PHONE 243-8181. MEMBER FDIC.
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College and Drake University and
served in the U.S. Army C.I.D. Divi
sion from 1953-55 before joining E. I.,
Sargent Quarries Company. Incorpo
rated in 1920, Sargent Quarries was a
division of Sargent Feed Company,
founded by Dick Sargent’s grandfather
in 1888.
x

J. Locke Macomber, president of
the Valley Bank & Trust Company, has
announced several staff appointments.
Jennie W. Foster has been named
trust operations manager. She has been
with the bank’s trust department since
1958 and has over 40 years experience
as a legal secretary.
Helen Harmon, who has been with
the bank since 1965, was named head
of customer relations, Regency office.
She is the widow of Henry Gadd Har
mon, a former president of Drake Uni
versity.
Sara Hausman was appointed em
ployee benefits manager. She has been
a legal secretary since 1926, and has
been with the bank’s trust department
since 1955.
Martha Heldenbrand was appointed
manager of customer accounts depart
ment. She joined the bank in 1953 fol
lowing service at the Davis County
Savings Bank, Bloomfield.

Donna White was appointed man
ager of the personnel department. She
joined the bank staff in 1958 as an ex
ecutive secretary.
X

Timothy Florer, formerly of the
Iowa State Bank, has joined the staff
of the First National Bank of West Des
Moines as an officer trainee.
ijc
George C. Koss, a Des Moines civic
leader and a director of the Iowa-Des
Moines National Bank, died recently.
Mr. Koss, 66, was president of Koss
Construction Co. for 26 years and had
been the company’s chairman since
last month.
Mr. Koss served as president of the
Associated General Contractors of
America, Inc., in 1955. In 1952 he
won the Des Moines Tribune Com
munity Service Award, being cited for
his service on the city Plan and Zon
ing Commission and with the Ameri
can Red Cross, Edmundson Art Foun
dation, Chamber of Commerce and
Community Chest. He was also a trust
ee of Drake University, Des Moines.
X X X
Hawkeye Bancorporation has de
listed from the Midwest Stock Ex
change, it was reported. Stock from the
firm will now be traded on the overthe-counter market.

FIRST NATIONAL BANK OF MUSCATINE
M uscatine, Iow a
STATEMENT OF CONDITION
JUNE 3 0 , 1972
ASSETS
Cash a n d D u e fro m B anks
U n ite d S tates G o v e rn m e n t S e c u ritie s ...........................
S ta te , C o u n ty a n d O th e r M u n ic ip a l O b lig a t io n s .....................
F e d e ra l R eserve B a nk S to ck
Loans
.............................................
B a n k, P a rk in g Lot O ffic e an d F ix tu re s ...........................................
O th e r Assets
...........................
In c o m e E a rn e d b u t N o t C o lle c te d ...............................................

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

7 ,2 8 0 ,4 2 6 .8 5

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

4 6 6 ,6 6 2 .9 3
2 8 7 731 72
3 9 1 ,0 7 1 .5 1

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

$ 4 6 ,9 6 0 ,5 6 5 .6 7
LIA B ILIT IE S
C a p ita l

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

R eserve f o r Loan Losses . .
In c o m e C o lle c te d b u t N o t E a rn e d
D e p o s its

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

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

1,0 0 0 0 0 0 0 0
1 ,3 7 1 ,4 0 3 .5 6
4 5 5 ,2 1 9 .8 6
4 6 6 ,9 1 0 .4 8
4 4 5 ,6 8 9 .0 2
4 2 ,2 2 1 /3 4 2 .7 5
$ 4 6 ,9 6 0 ,5 6 5 .6 7

OFFICERS
C. D. O B E R W O R T M A N N
C h a irm a n o f th e B o a rd

G E O R G E A . SHEPLEY
P re s id e n t
S. D. HERZBERG
V ic e P re s id e n t—
In s ta llm e n t Loans
M A R G A R E T M A TH E S
A s s is ta n t V ic e P re s id e n t
a n d A s s is ta n t T ru s t O ffic e r
L. G . SULZBERGER
A u d it o r
TELFORD D IN D IN G E R
M a n a g e r , P la za O ffic e

JA C K ELLIS
V ic e P re s id e n t a n d C a s h ie r
MYLES BEITZ
A s s is ta n t V ic e P re s id e n t
a n d Farm M a n a g e r
H. W . O G IL V IE , JR.
Loan O ffic e r
L O U IS RECHTFERTIG
Loan O ffic e r
O ZELLE TE M P LEM AN
M a n a g e r, D o w n to w n O ffic e
M e m b e r F e d e ra l R eserve S ystem

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Federal Reserve Bank of St. Louis

1972

H. E. LE M K AU
E x e c u tiv e V ic e P re s id e n t
LARRY M . H O W E
V ic e P re s id e n t a n d

T ru s t O ffic e r
JA M E S V . P U LLIA M
Loan O ffic e r
LEO K O SS IV ES
A s s is ta n t A u d it o r
D O N N A GRELL
M a n a g e r , B o o k k e e p in g D e p t.
J O MERCER
A s s is ta n t S e c re ta ry
M e m b e r F e d e ra l D e p o s it In s u ra n c e C o m p a n y

DISC . . .
(Continued from page 25)
with information on how a DISC may
be formed and operated.
For our purposes here, however, it
should be recognized that only a very
modest amount of money is involved.
In my estimate, a DISC could be
formed for as little as $3000. Five
hundred dollars of the $3000 would
probably be needed in the legal ex
pense of formation and chartering
which is legal in all 50 states. The
other $2500 could be held in abeyance
until the corporation was in operation,
since the capital structure of a DISC
calls for a minimum of $2500 of capi
tal and only one class of stock.
Before the DISC program was im
plemented, the U.S. Treasury made
several projections. One was that it
would take two or three years for the
knowledge of this program to become
widespread enough to be effective.
However, at this point of one year
since the act has become effective, a
large number of DISCs have been
initiated. We are estimating at this
point that within a year or so approxi
mately $1 billion and a half of addi
tional exports will be generated
through this program and possibly in
the magnitude of something around
800,000 jobs would be created to pro
vide the material for these exports.
Conclusion: The DISCs are new.
The average banker can and should
be in the leadership in his community
in recommending these to his custom
ers. This is an opportunity that should
not be overlooked. The banker who
has helped his customers develop
these programs is in a position of ob
taining a market segmentation simply
by being there first. His customer has
made a profit from increased sales.
This means more local jobs and a more
healthy local and material economy.
—End

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I owa N e ws

P r o m o tio n s A n n o u n c e d at
C oun cil B luffs S avin gs
The promotion of one officer and
the appointments of two new bank
officers have been announced at the
C o u n c i l Bluffs
Savings Bank by
Ed H. Spetman,
Jr., president.
T h o m a s D.
Whitson has been
promoted to vice
p re s id e n t and
trust officer and
will now head the
bank’s trust dep a r t m e n t . He
joined the bank in 1963 and has
worked in the real estate loan depart
ment, the commercial and farm loan
department, and the trust department.

J. D. SENS

has been appointed farm manager. He
is a graduate of Iowa State University.

J o in s B an k in M apleton
J. R. Welch, president, First State
Bank of Mapleton, has announced that
Thomas S. Martin has joined the bank
staff as vice president.
Mr. Martin, a native of Conrad
where his father is executive vice presi
dent of the First State Bank, was for
merly with the Merchants National
Bank in Cedar Rapids. He had been
with that bank since 1965, including
three-and-a-half years in the corres
pondent department.

P r o m o te d at J efferso n
Douglas McDermott has been pro
moted from cashier to vice president
and cashier at the Home State Bank
of Jefferson. He is currently in charge
of personnel and internal bank opera
tions with loaning functions and will
assume more lending and management
duties in his new position, according
to Gerald Clause, bank president.
Mr. McDermott joined the Home
State Bank in 1969 as assistant cash
ier. Prior to that he had been with
banks in Winterset and Sac City.

C. S. LOVSTAD

John D. Sens was named assistant
trust officer. He is a graduate of North
east Missouri State College and the
Drake University Law School. He also
holds a masters degree from the Uni
versity of Kansas.
Craig S. Lovstad, a native of Manly,

R ed field B ran ch H ead
Roger Perry has been appointed
Redfield branch manager of the Dallas
County State Bank of Adel. Mr. Perry,
who was also named assistant cashier,
has been at the bank’s Dexter office
for the past 11 months.

CENTRAL TRUST AND SAVINGS BANK
ELD R ID G E, IO W A
June 30, 1972
ASSETS
Cash in Vault and due of Banks ...................................................
$ 1,100.054.61
United States Government Securities ...............................................
741,944.75
Iowa and Illinois Municipal Securities .......................................
1,141,022.10
$ 2,983,021.46
Cash and Securities .....................................................
Real Estate Mortgages in Scott County .........................................
$ 3,251,259.01
Livestock, Grain, Commercial and other Loans .........................
5,319,251.69
Various Installment Loans ................................................................
957,814.26
Student Loans ......................................................................................
314,185.85
Customer Overdrafts ..............................................................................
1,130.49
$ 9,843,641.30
Loans Outstanding ......................................................
Affiliate Building Corporation Stock .............................................
$
162,500.00
107,024.33
Furniture, Fixtures, Machines, Lock Boxes ...............................
996.90
Accrued Interest on Securities Purchased ...... ............................
$ 270,521.23
Other Assets ....................................................................
TO TA L
.................................................................
$13,097,183.99
L IA B IL IT IE S
$ 3,783,892.99
Demand Deposits ..................................................................................
2,839,710.59
Savings Deposits ....................................................................................
5,308,413.25
Savings Certificates ................................................................................
$11,932,016.83
Total Deposits ..................................................................
92,201.64
Discounts Collected, Not Earned ...................................................
$ 200,000.00
Capital Stock, 2000 Shares Common ...............................................
500,000.00
Surplus Fund ................................................... ........................................
253,019.03
Undivided Profit Account ....................................................................
119,946.49
Special Reserves ............................................. ......................................
$ 1,072,965.52
Total Capital Accounts ...............................................
$13,097,183.99
TO TA L
..................................................................
O F F IC E R S
H E R B E R T SC H N E C K L O TH , B o a rd Chm .
D O NA LD H . H A M A N N , V ice P re sid e n t
R O B E R T J. TA N K , P re sid e n t
B E R N IC E F. W U L F . A ssista n t V ice P re sid e n t
JA M E S R . TA N K , E xecutive V ice P re sid e n t
K E N N E T H L. OETZMAJNN, C ash ier
D A V ID E . S T E P H E N S , S enior V ice P re sid e n t
Member Federal Deposit Insurance Corporation

o rFRASER
th w estern B a n k e r, A ugust,
Digitized Nfor
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1972

IN A C o rp o ra tio n to
B uy L aw rence S ystem s
INA Corporation, Philadelphia, has
agreed in principle to acquire Law
rence Systems, Inc. a national com
pany which provides services to finan
cial institutions, manufacturers, and re
tailers. The final agreement would be
subject to the approval of Lawrence
stockholders.
Although the exact price of the
transaction was not made public, of
ficials of INA Corporation said the^
amount was “in the area of $16 mil
lion.”
Louis E. Tippet is chairman and
chief executive officer of Lawrence
Systems. Arthur B. Adams is presi
dent. Both men have been with Law
rence for more than 30 years.
It was pointed out that the Law
rence Systems agreement followed, by
just a week, disclosure of INA Cor
poration’s plans for merging its wholly
owned investment banking subsidiary,
Blyth & Co., Inc., with Eastman Dil
lon, Union Securities, Inc., another
major Wall Street house. INA Cor
poration will own a large minority in
terest in the new organization, Blyth
Eastman Dillon, with an option to buy
complete control over the next four
years.
A San Francisco-based company, f
Lawrence Systems operates through 47
offices in the continental United States
and in Puerto Rico, Toronto, and Van
couver.
Its services include inventory con
trol, accounts receivable control, and^
document control — activities gener
ally referred to in banking and factor->
ing as “collateral control services.”
Lawrence Systems also provides'*
uniformed guard services in Portland,
Seattle, San Francisco, Long Beach,
Anaheim, and Salt Lake City.
r
A subsidiary of Lawrence Systems
has several security devices in the de
velopment stage.
INA Corporation is a financial serv
ices comlex of companies, based in
Philadelphia. Its more than 50 sub-*
sidiaries include companies in the
fields of life insurance, property and
casualty insurance, insurance-related
services, investment banking, invest
ment counseling, money management,
stock brokerage, real estate develop
ment and management, construction,"
devices and systems for preventing and
extinguishing fires, and health care.
Operating in 110 countries, INA is onei
of America’s largest corporations.

I o wa Ne ws

P lan N ew B u ild in g fo r Lone Tree

by officers and directors of the bank
at a dinner. He is a past president of
the Central Iowa Conference of the
Bank Administration Institute.
C. Roger Alley, chairman of the
bank, announced that Joseph C. Picken, Jr., has been named to the board
of directors to replace Mr. McNeil.
Mr. Picken is a former professor of
biochemistry and veterinary physiology
at Iowa State University, and has been
a vice president of the bank for more
than four years.

B re n to n B ank O p en s
ARCHITECT’S DRAWING fo r Farmers and M erchants Sav. Bk., Lone Tree.

H o ld A u to m a tio n S c h o o l
About 25 Iowa bankers attended the
recent three-day Bank Automation
School held at the University of North
ern Iowa, Cedar Falls. The school is
sponsored jointly by UNI’s Extension
Service and the Iowa Bankers Associ
ation. Director of the school is Glenn
L. Hansen, assistant professor of bus:
ness education at UNI.

H o m e r M cN eil R etires
F ro m F irst o f A m es
Homer P. McNeil, a veteran of 48

years in the banking business, has re
tired as senior vice president, secre
tary and director at the First National
Bank of Ames.
Mr. McNeil first joined the bank in
1924, serving as bookkeeper, auditor
assistant cashier and cashier. In 1956
he left Ames to join the Rocky Moun
tain Bank of Denver, Colo. He re
turned to Ames in 1966, when he was
named senior vice president and head
of banking operations at First Na
tional.
Mr. McNeil was honored recently

Brenton Bank & Trust Co. has
opened for business at a temporary lo
cation in Cedar Rapids at A Ave. and
Second St. N.E. It is the seventeenth
bank operated by the Brenton Bank
chain of Des Moines.
Mayor Donald J. Canney cut a rib
bon composed of 100 $1 bills which
were then donated to charity.

Join the

Continental
W e s te r n

For a Perm anent Refresher
CONTINENTAL WESTERN INSURANCE COMPANY
Phone (515) 278-3000
O
HOME
BUSINESS
AUTO
LIFE

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Federal Reserve Bank of St. Louis

CONTINENTAL WESTERN LIFE INSURANCE COMPANY
Phone (515) 278-3345
N ew Home Offices:
11201 Douglas A venue (Interstates 35-80), Des M oines, Iow a 50322
DIVISIONS OF CONTINENTAL WESTERN INDUSTRIES, INC.
N o rthw estern

B anker,

A ugust,

1972

R em em b er W h en ?
You’re old enough to remember the
real America if you can remember
when you never dreamed your country
could lose.
When you left your front door open.
When you went to church and the
preacher preached from the Bible.
When a girl was a girl — when a boy
was a boy — and you could tell
them apart.
When even the word “Socialism” was
a dirty word.
When the poor were too proud to take
charity.
When a nickel was worth five cents.
When you bragged about your home
town — your state — and your na
tion.
When the flag was a sacred symbol.
When this Government stood up for
Americans.
When a man who went wrong was
blamed — not his mother’s nursing
habits or his father’s income.
When everyone knew right from wrong
— even Harvard Professors.
When things were not perfect and you
didn’t expect them to be.
When people still had the capacity for
indignation.

IN D E X

A D V E R T IS E R S

A
Acorn Printing Company ..................................... 82
American Benefit Insurance Co......................... 36
American Express Companv ......................... 14-15
American National Bank and Trust Co. —
Chicago .................................................................. 45
American National Bank and Trust Co. —
St. Paul ................................................................ 51
American Trust and Savings Bank — Dubuque 73
B

Bankers Trust — Des Moines .............................. 70
Bank of America ....................................................
9
Banks of Iowa, Inc................................................ 2
Brandt, Inc.............................................................. 11
C
Central Bank — Denver ....................................... 59
Central National Bank and Trust Co. —
Des Moines ......................................................... 81
Central Trust and Savings Bank — Eldridge . . 84
Chemical Bank ......................................................... 20
Chiles, Heider & Co., Inc.................................. 64
o r t hFRASER
w e s t e r n B a n k e r , A u g u s t , 1972
DigitizedN for
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Federal Reserve Bank of St. Louis

When sick meant that you were not
feeling well.
When people expected less and valued
what they had more.
When everyone was not entitled to an
annual wage whether he worked or
not.
When a man’s word was his bond.
When America was the land of the free
and the home of the brave.

C o n ta g io u s B ite
Julie was going to visit her aunt,
who was recovering from an illness.
Julie’s mother was giving her final in
structions. “Don’t stay too long,” she
said, “and if your auntie asks you to
dinner, say you have already dined.”
When Julie arrived at auntie’s she
was asked: “Julie, will you stay and
have a bite?”
“No thank you — I have already
bitten,” Julie replied politely.

N ew L o o k
Rick: “Your wife used to be very
nervous, but now she doesn’t show a
sign of it. What did you do for her?”
Dick: Found a new doctor who
cured her in a hurry. He just told her
that nervousness is a sign of old age.”

Colorado National Bank ....................................... 61
Continental Western Insurance Company . . . . 85
Continental Western Life Insurance Company 10
Cummins-Chicago Corporation ......................... 18
D
DeLuxe Check Printers, Inc................................... 29
Doane Agricultural Service, Inc.............................. 38
Drovers National Bank — Chicago ..................... 75
E
Exchange National Bank — Chicago ................ 40
Execudec, Inc............................................................
8
F
Financial Insurance Service, Inc......................... 43
First National Bank — C h ica g o ......................... 6-7
First National Bank — D en v er.............................. 57
First National Bank — Lincoln ........................... 67
First National Bank — M u scatin e....................... 82
First National Bank — Omaha ........................... 65
First National Bank — St. P a u l ........................... 35
Foremost Insurance Company .............................. 4
H

Harris Trust and Savings B a n k ........................... 31
Heirloom Bible Publishers .................................. 32
Heller, Walter E., Co............................................... 17

Interstate National Companies ...........................
Iowa-Des Moines National Bank .............
Iowa Legal Blank & Printing Co........................
K
Kooker, E. F., Associates .....................................
L
LaSalle National Bank .........................................
Lincoln Benefit Life Company ...........................

13
88
80
85
77
68

W h at W e d d in g ?
One girl to another: “Well, it’s true
we are having a little disagreement. I
want to have a big church wedding and
he wants to break off the engage
ment.”

T h e M ea n in g o f L ife
Anyone can carry his burden, how
ever hard, until nightfall. Anyone can
do his work, however hard, for one
day. Anyone can live sweetly, pa
tiently, lovingly, purely, till the sun
goes down. And this is all that life
really means.
— Robert L. Stevenson

In n o c e n t R em a rk
Brother: “I thought I told you not
to tell Mom how late I came in last
night.
Sister: “I didn’t tell her. I just told
her I was too busy setting the break
fast table to notice the time.”

O u td ated P r o v e r b ?
Nothing succeeds like success. How
ever, failure may be more helpful in
getting a government-approved loan.

M
1
Mail Order Mart .................................................. 44
Marquette National Bank .............................. 46-47
Marquette Sedard Travel Inc................................. 30
Morgan Guaranty Trust Company ..................... 19
N
North Central Life Insurance C om p any............ 3
Northwestern National Bank — Minneapolis . . 49
Northwestern National Bank — O m a h a ............ 69
O
Omaha Printing Company ..................................... 66
P
Packers National Bank — O m a h a ....................... 66

Rand, McNally ......................................................... 12
S
Security Corporation .............................................. 37
Security National Bank — Sioux C i t y ................ 83
T

Talcott, James, Inc..................................................
Triad Sign Service ..............................................
U
United States Check Book Company ................
U. S. National Bank — Omaha .........................
V
Valley National Bank of Arizona .......................
Van Home Investments, Ine..................................
Van Wagenen, G. D., Co......................................
Y
Yale Bank Service Division ......................... 66,
Z
Ziegler, B. C., and Company ............................

33
32
79
62
87
80
18
82
39

Here’s how we looked
at mid-year.

STATEMENT OF CONDITION
At the close of business June 30, 1972
CASH

(Com pared w ith June 30, 1971)

RESOURCES

Cash on Hand and Collection Items
On Deposit in Federal Reserve
and Other Banks
TOTAL

,004,076
,210,139
$ 305,214,215

BONDS AND INVESTMENTS
U.S. Government
States and Political Subdivisions
Federal Agencies
Other Securities
Money Market Investments
TOTAL

131,798,532
354,770,382
24,172,815
2,145,424
39,319,038
$ 552,206,191'

, Bonds and Investments
up 10.6%

LOANS
Agricultural and Livestock
Commercial and Industrial
Instalment Loans
Credit Card Loans
Mortgage Loans
TOTAL

OTHER
Accrued Interest Receivable
Bank Premises and Equipment
(Net of Depreciation)
Customer’s Acceptance Liability
Other Assets
TOTAL

TOTAL RESOURCES
DEPOSITS
Demand Deposits

$ 163,998,652
462,371,187
357,364,961
47,023,831
338,556,407
$1,369,315,038x
$

17,222,193

lo an s up 15.1%

.Resources up 18.5%

66,531,202
37,152,746
8,131,091
$ 129,037,232
$2,355,772,676/

LIABILITIES

Individuals, Businesses and Banks
U.S. Government and
Other Public Funds
Total Demand Deposits

$ 695,852,361

.Deposits up 12.5%

61,483,505
$ 757,335,866

Time Deposits
Savings Accounts
Certificates of Deposit — Regular
Certificates of Deposit — Public Funds
Total Time Deposits
TOTAL DEPOSITS

$ 421,425,932
692,814,419
53,617,365
$1,167,857,716 /
$1,925,193,582'

.Capital up 7.2%

OTHER LIABILITIES
Funds Borrowed and
Repurchase Agreements
Unearned Income
Acceptances Outstanding
Accrued Expenses and Reserves
Accrued Income Taxes
Other Liabilities
TOTAL OTHER LIABILITIES

RESERVES ON LOANS
Reserve for Possible Loan Losses
(Under Treasury Tax Formula)

CAPITAL ACCOUNTS
Convertible Capital Notes
Equity Capital
Capital Stock ($2.50 Par Value)
Surplus
Undivided Profits
Total Equity Capital
TOTAL CAPITAL ACCOUNTS

TOTAL LIABILITIES AND CAPITAL

185,804,000
43,211,772
37,152,746
7,139,821
6,387,869
3,365,257
$ .283,061,465
$

17,846,136

13,076,600

22,158,385
52,052,946
42,383,562
$ 116,594,893
$ 129,671,493'
$2,355,772,676
$

One word sums it up. Growth.
The s p e c ific s are h e re : a ll
indices are up substantially.
Again in the firs t half of 1972,
Valley Bank is a growing bank
helping Arizona grow.
The photo shows how our
new headquarters complex —
Valley Center — looked at mid
year. We’ ll be moving in this
fall.

VALLEY NATIONAL BANK OF ARIZONA

Earl L. Bimson, President

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

Home Office: P.0. Box 71, Phoenix 85001
MEMBER F. D .l .C .

YES, WE’RE GROWING
JUN E 30, 1972

RESO URCES

L IA B IL IT IE S AND C A P IT A L

C a s h a n d D u e f r o m B a n k s ..................................................... $ 1 4 0 . 0 1 5 . 5 5 8

D e p o s i t s ...........................................................................................$ 3 6 2 , 4 0 1 , 8 3 6
S e c u r itie s S o ld u n d e r A g r e e m e n t s to R e p u r c h a s e
22,931,000
F u n d s B o r r o w e d ..........................................................................
19,220,000
1,555,336
A c c r u e d T a x e s a n d O t h e r E x p e n s e s ...............................
U n e a r n e d I n c o m e a n d O t h e r L i a b i l i t i e s .........................
9,495,719

U .S . G o v e r n m e n t S e c u r i t i e s ................................................

23,516.273

S tate and M u n ic ip a l S e c u ritie s

54,967,353

O t h e r S e c u r i t i e s ..........................................................................

1.363,162

F e d e r a l R e s e r v e B a n k S t o c k ...............................................

4 5 0 ,0 0 0

L o a n s a n d D i s c o u n t s .................................................................

2 15 ,245 ,47 6

D i r e c t L e a s e F i n a n c i n g ...........................................................

1,556,377

B a n k P r e m i s e s a n d E q u i p m e n t ..........................................

2,656,042

O t h e r A s s e t s ..................................................................................

2.625.936

T otal R e s o u rc e s

S 4 4 2 . 3 9 6 .1 77

$41 5 , 6 0 3 , 8 9 1
R e s e r v e f o r P o s s i b l e L o a n L o s s e s ....................................$

3,659,446

C a p i t a l N o t e ...................................................................................$
C a p i t a l S t o c k .................................................................................
S u r p l u s .....................
U n d i v i d e d P r o f i t s ........................................................................

3,000,000
4,000,000
11,000,000
5,132,840

T o t a l C a p i t a l F u n d s ................................................................$ 2 3 , 1 3 2 , 8 4 0
T o t a l L i a b i l i t i e s a n d C a p i t a l ...............................................$ 4 4 2 . 3 9 6 , 1 77

Let us help your bank grow . .. contact Dale Luckow. Bob Buenneke, George Harnagel. Brock Hessing, Bernard Kersey,
or Dwayne Smith.

IO W A -DES M O IN ES N A T IO N A L B AN K
SIXTH & W A L N U T 50309
PHONE 284-8686

M e m b e r F e d e ra l D e p o sit In s u ra n c e Co rp o ra tio n

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Federal Reserve Bank of St. Louis