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Federal Reserve Bank of St. Louis

D e c e m b e r
I IN » 5

Federal Reserve Bank of St. Louis


T o our many friends in banking...
oTVTerry Ghristmas - ' GH appycN ew GYear


C h icag o 6 0 6 9 0

• Fin an cial 6 -5 5 0 0

• M em ber F .D .I.C .

No. 942. Northwestern Banker is published monthly by the Northwestern Banker Company, 306 Fifteenth Street, Des Moines, Iowa 50309. Subscription 50c
per copy, $4 per year. Second class postage paid at Des Moines, Iowa. Address all mail (subscriptions, change of address, Form 3579, manuscripts,

items) to above address.
Federal Reserve Bank of St. Louis


Wins Mosler Contest

Oldest Financial Journal West of the Mississippi

for your DECEMBER, 1965, reading
71st Y e a r

No. 9 4 2


Across the Desk from the Publisher


Frontispage—“ Winter Scene”
New System Lets Bank Do Farm Bookkeeping
Are Short-Term New Business Campaigns Effective?
“ Yes”-—Henry C. Coleman
“ No”—Larry Ronson
Operating Under the Uniform Commercial Code—
Robert E. Johnson
Employee Compensation: How Banks Compare—Roy G. Foltz
Bankers You Know—K. A. Randall
Bank Holdups Are Increasing
How We Opened a “ New World” of Banking—Michael Braude
1966—Good, But Slower Growth—Larry Nothwehr



Twin City
South Dakota
North Dakota




Nebraska News
Omaha News
Iowa News
Des Moines News


In the Directors’ Room
Index of Advertisers

Jeannie Archer, an attractive drivein teller at the American Bank &
Trust Company, Baton Rouge, La.,
has been named
M i s s D riv e -In
T e l l e r in the
ei ght h a n n u a l
competition, spon­
sor ed nationally
by T he Mosl er
Safe Company.
As Miss DriveIn Tel l er , Mrs.
Archer will reign
during 1966 and
will attend vari­
ous banking functions. The grand
prize in the contest is an all-expense ,
vacation for two at the Condado
Beach Hotel in Puerto Rico with trans­
portation via Trans Caribbean Air­
Mrs. Archer was selected by a na­
tional vote of bankers following the
American Bankers Association Con­

15-17 — Operations R e s e a r c h
W orkshop, Palmer House, Chi­
cago, 111.
Jan. 31-Feb. 1— 18th National Credit
Conference. A m e r i c a n a Hotel,
New Y ork, N. Y .
Feb. 7-9— 47th Midwinter Trust Con­
The W a ld o rf-A sto ria ,
New Y ork, N. Y .
Mar. 21-23— 63rd National Savings
Conference, Sheraton-Chicago H o­
tel, Chicago, 111.
A pril 4-6— National Instalment Credit
Conference, Conrad Hilton Hotel,
Chicago, 111.
April 24-27— 6th National Mortgage
Conference, Leamington Hotel,
Minneapolis, Minn.
April 26-28, 1966— Independent Bank­
ers Association, 32nd annual con­
vention, The Dunes Hotel, Las
Vegas, Nevada.
May 12-13— Nebraska Bankers Associ­
ation 69th annual convention, at
Cornhusker Hotel, Lincoln, Nebr.
May 12-14— South Dakota Bankers
Association 74th annual conven­
tion, at Aberdeen, South Dakota.
May 30-June 3— A .I.B . National Con­
vention, El Cortez Hotel, San
Diego, Calif.
June 5-8— National Automation Con­
ference, Palmer House, Chicago,


306 15th Street, Des Moines, Iowa 50309, Telephone (Area Code 515) 244-8163



Clifford De Puy

Malcolm K. Freeland

Larry W. Nothwehr

Mildred Savich
Field R ep resen ta tive

AI Kerbel

Ben J . H a lle r, J r .
A ssocia te E ditor

A ssocia te E ditor
A d vertising A ssistan t

E ditor

Circulation D epartm ent

Lena Sutphin
Field R ep resen ta tive

Joe M. Smith

David L. Lendt
A u ditor

Bertha Soderquist
Field R ep resen ta tive

Paul Masters

Frank P. Syms, Vice President, 550 Fifth Avenue, New York 36, JUdson 2-7126
N o r t h w e s t e r n Banker, D e c e m b e r,
Federal Reserve Bank of St. Louis


June 13-15— Minnesota Bankers Asso­
ciation 76th annual convention at
Hotel Radisson, Minneapolis.
July 2-6— Montana Bankers Associa­
tion 63rd annual convention, at
Banff Springs Hotel on Lake
Louise, Alberta, Canada.
Oct. 16-19— 80th Annual Iowa Bankers
Convention, Fort Des Moines
Hotel, Des Moines, Iowa.
Oct. 23-26— 92nd Annual A .B .A . Con­
vention, San Francisco, Calif.
Nov. 13-15— 15th National Agricultur­
al Credit Conference, Leamington
Hotel, Minneapolis, Minn.



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ST. P A U L , M I N N E S O T A
Federal Reserve Bank of St. Louis














N o r t h w e s t e r n Banker, D e c e m b e r , 1965


.1 n iu n in r r - A Mil



Mivhatv T h em e
That law enforcement
agencies in the United States
should be given greater freedom in
the investigation and prosecution of
crime” will be the subject for the
1966 national debate program of the
American Institute of Banking.
A.I.B.’s debate topic is the same as
that being used this year in intercol­
legiate debate tournaments.
The A.I.B.’s annual debate program
gets underway this fall as individual
chapters throughout the country be­
gin qualifying debates. These quali­
fying debates are the first step in
choosing the teams which will com­
pete in the Robert C. Rutherford Na­
tional Debate Contest. The finals of
the contest will be held in San Diego,
Calif., next June as a part of the Insti­
tute’s annual convention.

Joins Correspondent Division
U-shaped bar travels over car, washing
quarter panels 12 times, front and
rear 4 times. Triple-action washing is
concentrated on hard-to-clean
parts. Jets underneath clean the
Jet-Cit-Thru is brand new and uncopied. It
stands alone, out in front, a tested and proved
way to make substantial profits in the car
wash business. Jet-Cit-Thru pre-spray applicator
loosens dirt for a perfect wash job. Specially
designed jet sprays clean the whitewall tires,
using an exclusive tire cleanser. The same
warm, soapy water that cleans the body sprays
underneath— cleaning the entire undercarriage.
Here is another important key to profits—
double duty for the water— no waste! Jet-CitThru is hard on dirt, easy on water bills!

Driver deposits coin, or pays attendant . . .
drives in between guide ra ils . . . stops. Opera­
tor starts Jet-Cit-Thru’s high pressure washing
cycle, directs power wash to specific parts of
car. After two-minute wash, driver pulls his
clean car through high velocity air dryer. Keys
to profit are here: simplicity, thoroughness,
speed. In less than three minutes the driver
pulls away in his clean, dry car! He is satisfied
and pleased.

Complete car is washed, bumper-to-bumper,



'c n

top-to-bottom. Nothing is missed! Yet nothing
but warm soft water and soap touch the car
at any point. No mechanical scratching, brush­
ing, scraping, or chain hook-up. No workers
touch the car or get in it. Wax and finish
are protected.

More than 15 years of experience in pressure
cleaning have gone into the development of
Jet-Cit-Thru. It is specifically engineered for
trouble-free performance, minimum mainten­
ance and low operating cost. All electrical
circuits meet national electrical codes.

One Jet-Cit-Thru bay takes little more space
than a one-car family garage. High profit
potential for one or two bay operations . . .
even with small land requirement. Each bay
can profitably wash 25 cars per hour.

Call, write, or wire for complete details and
personal appointment to see Jet-Cit-Thru in



o r t h w e s t e r n Banker. D e c e m b e r , 7965
Digitized forNFRASER
Federal Reserve Bank of St. Louis


PHONE 515 / 752 - 3696

Douglas C. Mills has joined the
correspondent bank division of the
American National Bank and Trust
Company, Chicago.
Mr. Mills has
been assigned to
work with Wil1i a m Al dr i c h,
a s s i s t a n t vice
president, in con­
t a c t i ng b a n k s
throughout Iowa,
Kansas, Nebraska,
Co l or ado, Mo n ­
tana, and Wyom­
D. c. M IL L S
A n a t i v e of
Galesburg, 111., Mills received a B.S.
degree in marketing from the Univer­
sity of Illinois in 1962, where he com­
piled a distinguished record in athlet­
ics. A seven-letter man in football,
basketball, and baseball, he was named
“Athlete of the Year” by the student
body of the university in his senior
Following graduation, Mills served
a year in the United States Army,
after which he worked in sales man­
agement for a prominent proprietary
drug company. He joined American
National in June of this year, being
assigned to the Personnel Division
prior to his recent appointment.

Retires in Los Angeles
Thomas B. Williams, vice president
and trust officer of Security First Na­
tional Bank’s head office trust depart­
ment, has retired after more than 34
years of service.


Now, you can save $1 or more per 100 ft. roll
of Recordak Microfilm. Simply order it without
the processing charge included, and let the
Recordak Prostar do the job automatically
right on your premises. In addition to the $1
plus saving on processing, you also eliminate
postal and messenger charges. And you in­
crease security too.
Now, you can see the pictures minutes after
microfilming documents. The Prostar turns
out 5 feet of film (with pictures of up to 1,450
checks) per minute.
Now, you can get archival film quality right on
the premiseswith the Kodak-built Prostar. Any­
one can insert the film in this self-threading,
"table-top” unit. It does the rest automatically.
Call your local Recordak office. Or write
Recordak Corporation, Dept. 0-12,
Broadway, New York, N. Y. 10003.
Federal Reserve Bank of St. Louis



N orthw estern

Banker, D e c e m b e r , 1965


Plan NABAC Conventions

ire you sure it

Merle V. Stone, pr e s i d e nt of
NABAC, The Association for Bank
Audit, Control and Operations, has
_ a n n o u n c e d the
U dates f or 1966
1; NABAC C o n v e n ­
The 17th north­
ern regional will
be held in Omaha,
May 8-11. F. Phi­
llips Giltner, exec­
utive vice presi­
dent of the First
National Bank of
F. P. G IL T N E R
Omaha, will be
g ener al c hai r man. Sheraton-Fontenelle will be headquarters.
The 20th western regional will be
held in Portland, Oregon, June 5-8.
Charles Walker, assistant auditor of
United States National Bank of Ore­
gon, will be general chairman. Port­
land Hilton will be headquarters.
The 42nd national convention will
be in New Orleans, November 6-9, at
the Jung Hotel.



a good buy?

Joins Studley, Shu pert

D id you get the bonds for the best price? D o they really fill
your portfolio needs? I f you got them from a N ational B ou­
levard representative, y o u ’ re sure on both counts, because
along with knowing his bonds he’s a trained portfolio analyst,
too. H e’ll make an in-depth study o f your investment port­
folio before suggesting specific bonds. T h at w ay he can tailor
bond recom m endations to your needs and make other sug­
gestions to strengthen your entire investment program.
Are N ational Boulevard representatives good portfolio ana­
lysts? W ell, one correspondent bank increased net operating
earnings b y 46.3% the initial year after our in-depth study.
And where our skill in the bond market is concerned, take
a look at N ational B oulevard’s own performance. We have
an impressive average o f 4 .9 % pre-tax investment return
over the past five years.
Are you interested in this kind o f individualized attention?
You can get the full story o f our investment portfolio analysis
services b y calling Charlie Schoeneberger at . . .





WRIGLEY B U ILD IN G -400-410 N. Michigan Ave.* Phone467-4100

Digitized Northwestern
for FRASER Banker, D e c e m b e r, 1965
Federal Reserve Bank of St. Louis


Peter V. Walker has joined Studley,
Shupert & Co., Inc., of Philadelphia as
investment officer and is assigned to
the Studley, Shu­
pert T r u s t In­
vestment Council
staff. The appointment was an­
nounced by Wil­
liam H. Shupert,
president of the
firm which spe­
cializes in trust
services for a na­
group of
P. V. W A L K E R
more than 230
community banks.
Mr. Walker most recently was
assistant to the resident manager of
the Philadelphia office of Van Strum
& Towne, investment counselors, and
previously was security analyst in
the trust department of FidelityPhiladelphia Trust Company.

Offer Time Chart
An up-to-date “World Time Chart”
has just been published by the Manu­
facturers Hanover Trust Company,
New York. It shows how to compute
time differences in over 125 countries.
Included also is a map of the time
zones in the continental United States,
Alaska and Hawaii.
Free copies of the brochure may be
obtained from the public relations de­
partment, Manufacturers Ha no v e r
Trust Company, 350 Park Avenue,
New York, N. Y. 10022.




Fine wood is like fine wine or fine leather. It has warmth, color and
subtle luxuriousness. W e ’ve seen fine wood used for the fronts of teller counters and for furniture with
handsome results no other material could match. □ Unfortunately, we’ve also seen wood used for undercounter installations, and the results were only temporarily admirable. The reason is that a bank’s needs
. . . and its under-counter requirements . . . tend to change. And re-arranging a wood under-counter
installation is somewhat like re-arranging a grand piano. □ This is one of the most telling arguments
on behalf of Diebold Modular metal under-counter equipment. Not only can you custom-design your in­
stallation, you can change and re-arrange the installation at will : there’s no cutting or sawing involved.
Everything fits. Everything works. And you choose the wood of your choice for your counter fronts.
□ If you’re considering a wood under-counter installation, consider, too, the fact that one day you’ll
probably want to change it. W ith Diebold under-counter equipment, you’ll be able to.
Federal Reserve Bank of St. Louis


DIEBOLD, Incorporated, C an to n , O h io 44701 Dept. B-123
G e n tle m e n :
Please send c o m p le te in fo rm a tio n on D ie b o ld M o d ­
u la r M e ta l C o u n te r E q u ip m e n t.


N am e
F irm
A d d re ss


Dl B - 3 0 4 5 -A

N o r t h w e s t e r n Banker, D e c e m b e r , 1965

First National has just recently com­
pleted a multi-story addition to its
original bank building and will now
expand further when the new struc­
ture is completed in 1967.
The project is being constructed by
Robert P. Ingram and Associates.

Mosler Appointment


for new building for First Natl. Bank, Kansas City.

1st N at ¡»m il « / ' K a n sa s I'it if
W ill K xpaad Kart liar

for a new 20W story office building adjacent to
the First National Bank building was
held at Tenth and Main Streets in
downtown Kansas City last month
with considerable fanfare before an
estimated crowd of 1,000 persons.
The project is part of the urban re­
newal that has been changing the
skyline of downtown Kansas City in


dramatic fashion. The 20 stories and
lower levels will provide rental offices
as well as in-building parking.
Participating in the ground-break­
ing was Barret Heddens, Jr., president
of First National, since his bank will
occupy a considerable part of the new
building. It will be tied in with ex­
isting quarters of First National im­
mediately next to the new building.

The appointment of Philip Zenner
to the newly created position of di­
rector of marketing-systems products
for The Mosler Safe Company has
been announced by John E. Hampel,
vice president-marketing.
Mr. Zenner has an extensive back­
ground in systems sales, computer
applications engineering, market de­
velopment management and sales
management. He will office in Hamil­
ton, Ohio.

Drew Brown
Drew Brown, 55, vice president of
the Mercantile Trust Company, St.
Louis, died last month. He had been
with the bank for 33 years, and was
most recently in the national accounts

United California Promations
Directors of United California Bank,
Los Angeles, have elected nine vice
presidents. They are: Kenneth E.
Bell, Glen A. Gunderson, W. T. John­
son, B. J. Larsen, Hugh Magnum,
B. M. Martin, Arch G. Meyer, Fletcher
T. Scott, and I. Barry Thompson.
Four of the men, Messers. Johnson,
Larsen, Mangum and Thompson, are
assigned to the international division.
The other men are assigned to offices
of the bank.

Granite On Tower

R equires M o d e rn S upplies To Do th e J o b R igh t
Designed by an experienced sales clerk, this outfit combines all the features
you require.
★ No Additional Listing
★ Receipts tor Each Buyer
No Posting of Accounts

A Buyers Like It


Speeds Up Settling


Pays For Itself


Com bats Skip Buyers


Versatile— Com pact— Practical


See how it works in the pictures above.
Plastic sorting cabinet is shown at left in left photo, mounted on steering wheel
desk. Beside it is plastic, double clip listing board for the listing clerk. Photo
at right shows sorting cabinet and writing desk mounted on steering wheel for
convenience of sales clerk. Sold on a Money Back Guarantee.

Telephone Nos. 536*2651 or 536*2522
W rit e Us fo r S a m p l e S h e e t s an d In form atio n

h w e s t e r n Banker, D e c e m b e r , J965
Federal Reserve Bank of St. Louis

A masonry material, possibly gran­
ite, may be used in the exterior of the
$80 million skyscraper of the First
National Bank of Chicago, according
to news sources in Chicago.
The bank has not r ul ed out
other materials, including aluminum,
painted steel and marble. A decision
is expected before the end of the year.
The building, 60-stories in height,
will use more than six acres of glass.

Comptroller Names Counsel
The Comptroller of the Currency
has announced the appointment of
Oscar Turner of Greenbelt, Maryland,
as regional counsel for the 10th Na­
tional Bank Region. Mr. Turner will
take up duties at the regional office in
Kansas City later this year.
Mr. Turner has been an attorney in
the Washington Office of the Comp­
troller of the Currency since June,



It seems like every day somebody
comes in to offer you a Creditor
Insurance Program and they’re
all about the same.
Nice neat packages that expect
you to turn your accounting
procedures upside down
to suit them.
Not Red Shield.

This program is so trouble-free
it even trains your people

When you sign up for a
Red Shield creditor insurance
program we work with you to
analyze you and your customers.
Then we offer professional
assistance that can speed up
and simplify your lending
operation, provide help on
procedures for credit insurance
accounting, servicing, promotion,
sales, and train your staff.


You get a full promotion package

Red Shield is carefully tailored
to your market

We know no two parts of the
country, no two lending
institutions share identical
needs. That’s why Red Shield is
designed on a special basis:
it’s uniquely flexible.
With special plans to fit every
special need, from car financing
to mortgage insurance.
Red Shield can do as much for
you as you wish. Or as little.
But wherever you use it
it builds business.
Federal Reserve Bank of St. Louis

The Red Shield program comes
complete with ads for your local
papers, direct mail, posters,
brochures and folders ready for
your imprint. It’s all ready to go
without extra staffing and
expenditure on your part. You
just put it to work earning profits
for you. And it’s easy to sell.


If you d o n ’t have it, write to any of these
com panies fo r more inform ation:

The North Central
335 M innesota St.
St. Paul 1, Minnesota
Maine Fidelity Life Insurance Co.
Portland, Maine

You can capitalize on its
nationally advertised name

Your customers already know
about Red Shield. They’ve seen
it advertised in magazines like
The Saturday Evening Post.
They know its symbol.

North Central Life Insurance Co.
St. Paul 1, M innesota
Royal Oak Life Insurance Co.
Pittsburgh, Pennsylvania
West Virginia Life Insurance Co.
Huntington, West Virginia

N o r t h w e s t e r n Banker, D e c e m b e r , 1965


Intvrnlurv lutrin A n a ly sis I/o»/,A t ! ith A t/ Credit C on feren ce
ORE than 700 bank agricultural
credit officers attended the 14th
National Agricultural Credit Confer­
ence in Denver last month.
The bankers were particularly in­
terested in a new “Farm Credit
Analysis Handbook,” which is being
published by the American Bankers
Association on a regional basis to pro­
vide bank lending officers and agri­
cultural representatives with guide­
lines for sound credit extensions to

farmers and ranchers.
The handbook is conveniently di­
vided into six parts.
Part I, entitled Obtaining the Infor­
mation, includes a newly designed,
four-section financial record, consist­
ing of a loan application, financial
statement, supporting schedules and
profit and loss statement. Also in this
part are guidelines for farm visits and
evaluating management.
Part II, entitled Analyzing Busi-

for BANK
T h e net incom e advantage offered b y
ta x -ex e m p t bonds continues to figure

ness, covers major factors influencing
farm earnings such as volume of
business, efficiency and enterprise
organization. This part includes a
somewhat new departure in agricul­
tural credit analysis—the use of basic
financial ratios for analyzing adequacy
of capital, performance and ability to
service debt. This part also stresses
the use of trend analysis of both
financial and management factors. It
includes a 10-year comparative anal­
ysis sheet listing important factors to
be evaluated.
Part III advances to the Annual
Farm and Credit Planning phase, pro­
viding instruments and guidelines for
making annual crop and livestock
projections and setting forth a cash
flow schedule, family budget, budget
summary and projected profit and loss
statement. A seven-section form is in­
cluded to facilitate the completion of
an annual farm and credit plan.
Part IV covers Budgeting as An Aid
to Decision Making. It provides a
look at both complete and partial
budgeting as a means of evaluating
profitability of alternatives.
Part V pulls the analysis together
for a Loan Decision. It stresses special
points to be considered before final
loan action is taken.
Part VI, entitled State Supplement,
is one of the most unique features of
the handbook. This supplement will
be provided by the agricultural college
in each state. It will consist of all
available specific management and
financial guidelines and will enable
you to compare individual loan appli­
cations with “average” and “good”
standards within your state.

p r o m in e n tly in th e in v e s tm e n t p la n ­
n in g o f m ost banks. Our offering lists
are w ell know n as a source o f these and
other in vestm en t quality bonds, notes,
debentures and equipm ent trust certifi­
cates—the obligations o f w ell established
public bodies and corporations.

H A L S E Y , S T U A R T & CO.

In c .


t h w e s t e r n Banke r, D e c e m b e r , 1965
Digitized for
Federal Reserve Bank of St. Louis

Joins Kansas City Bank
Richard S. Brigham has been elect­
ed a vice president of First National
Bank, Kansas City. Barret S. Heddens, Jr., presi­
dent, announced
the board action
to become effec­
tive December 15,
and indicated that
Mr. Brigham’s ac­
tivity would be
primarily in the
bank’s busi ness
development progra m fo r the
greater Kansas
City area. He will also be active in
the fields of advertising and public
relations, in which he has served First
National for several years through his
capacity as executive vice president
of Rogers and Smith Advertising.


In a Park Avenue conference room. A rare pause for a man on the road some 26,000 miles yearly.

Most of the top 100 corporations use him. Smaller companies give him $1 billion in business.

They say this is the age of committees.
If so, one of the world’s largest banks, Chemical New York,
is bucking the age in its approach to serving corporate cus­
tomers. Our approach is the “committee of one”—and it may
be one of the reasons our resources have increased two billion
dollars in the last four years alone.
Each of our bankers serving business throughout the coun­
try is an across-the-board banking expert, rather than a lim­
ited specialist. The result: Your time with him can be spent
getting things done.
Your Chemical banker serves not just one industry, but all
Federal Reserve Bank of St. Louis

industry in your area. (50% of our business accounts are smallto medium-size companies outside the New York area.) Fa­
miliar with businesses widely diversified in size, products, and
problems, he can cope quickly and thoroughly with yours.
If you could benefit from our kind of thorough banking
knowledge and personal attention, why not meet with our
“committee of one.” All you need do is to contact our man
serving your area, or National Divi.
sion, Chemical Bank New York Trust { , 11
1 11 9i
Company, New York, N Y. 10015. ^
The bank that works hardest for you.
▼▼ M O I *V
N orthw esiem

Banker, December, 1965


V i'f f H e r urti f o r C h ristin a s 11 nh
million Americans saved
one billion, eight hundred and
fifty million dollars in 1965 Christmas
Clubs and are now receiving checks
from some 10,000 banks and savings
In announcing the largest accumu­
lation ever, Christmas Club a Corpo­
ration also announced the results of a
survey to determine the personal rea­
sons that led these people to join the
Club last November. Forty-six percent
said that they joined because “Christ­
mas Club gives me money for Christ­
mas gifts just when 1 need it most.”
Another 45 percent stressed the fact
that their Club check represented

money they would not have saved
otherwise. Most of the members gave
several reasons, such as the ease of
putting aside a small sum each week;
the convenience of Christmas Club as
a method of saving for taxes, insur­
ance, etc.; the freedom from unpaid
bills after the holiday is over.
As in past years, the Corporation
made a study of how the members
will use the money and estimates that:
38% or $703,000,000 will be used for
Christmas Purchases
31% or $573,500,000 will go into sav­
ings and investment
13% or $240,500,000 will pay local
and federal taxes

6% or $111,000,000 will clean up
year-end bills
12% or $222,000,000 for miscellane­
ous expenditures
The new record in both membership
and dollars saved again demonstrates
that thrifty Americans want to pre­
pare in advance for the year’s biggest

To Sell Auto Licenses
Paul Powell, secretary of state, Illi­
nois, visited The First National Bank
of Chicago recently to tour the facili­
ties the bank has constructed to sell
1966 Illinois passenger automobile li­
cense plates. First National is the
first Illinois bank to make license
plates available for sale to the pub-

N E W 1966 A U T O P L A T E is displayed b y
Paul P ow ell, Illin ois Secy, o f State, right,
and H erbert V. P rochnow , pres., First
N atl. B ank, Chicago. The bank is the
first in Illin ois to assist in selling 1966
auto licenses.

‘ ' >* PM > :>W _
As all businesses are, so was
founded upon the dreams of visionary young m en
In 1915, w ith a n id ea a n d $300 in b o rrow ed m o n e y , W . R .
H o tc h k is s fo u n d e d D e L u x e C h e c k P r in te r s. It is, t h e r e ­
fo re, w ith m o d e s t y a n d g r a t it u d e t h a t w e sa y w e are 50
years o ld in th is w o n d e r fu l year o f 1965.
T h e r e is g re a t t e m p t a t io n , w h e n c o m p a r in g t h e p a s t w ith
th e p r e se n t, to d w e ll o n t o d a y ’s a c h ie v e m e n ts a n d to
re ca ll w ith p r o u d fo n d n e s s t h a t w e w ere o n c e very s m a ll.
P h y sic a l g r o w th is c e r ta in ly a m e a s u r e o f su c c e ss, b u t we
h av e n ever w a n te d g r o w th fo r th e sa k e o f g r o w th its e lf.
W e are a service o r g a n iz a tio n a n d it h a s a lw a y s b een o u r
p r im a r y a im to p ro vid e fa s t , d e p e n d a b le service to o u r
c u s t o m e r s . T h is is w h y w e h av e g ro w n .
W e h o p e t h a t th e D e L u x e o f to d a y is p r e t t y m u c h th e
s a m e as t h e D e L u x e o f y e ste r d a y . W e are o ld e r a n d w e
are larg er, b u t w e are y e t t h e s a m e , s t ill a n x io u s to serve
b e tte r in th e fu t u r e .
W e express o u r g r a t it u d e to a ll th o se w h o h av e c o n t r ib ­
u te d to o u r 50 years o f p ro g re ss— o u r b a n k c u s t o m e r s , o u r
e m p lo y e e s , a n d o u r su p p lie r s o f m a te r ia ls , e q u ip m e n t
a n d services.
D E L U X E C H E C K P R I N T E R S , IN C .

N o r t h w e s t e r n Banker, D e c e m b e r,
Federal Reserve Bank of St. Louis


lie, and the only source, other than
the State Motor Vehicle Registration
Bureaus, where license plates are
available on an over-the-counter basis.
The bank will begin sale of the plates
on December 1, 1965. Herbert V.
Prochnow, president of First Nation­
al, commented that “The license plates
are being sold as an additional service
for the bank’s customers.

New AIB Courses
The American Institute of Banking,
educational section of The American
Bankers Association, has announced
two new courses and an interim text­
book for an existing course.
The new courses are: “ Fundamen­
tals of Bank Data Processing,” which
will be ready for the spring semester,
and “Principles of International Bank­
ing,” which should be ready before
next summer.
“Fundamentals of Data Processing”
will be available in early December at
$8.25 for the student workbook and
required readings, from: American In­
stitute of Banking, 90 Park Avenue,
New York, N. Y. 10016.

Are all travelers checks equally
acceptable to retail stores across the country?
Noted independent research company
finds significant differences.
1 ,000 retail stores* th ro u g h o u t the U nited States were asked: "W h ic h o f the fo l­
low ing travelers checks w ould you be m ost w illin g to accept in paym ent for your
goods or services?”




■ 3 .6 %

4 .4 %


0 .3 %

T H 0 S . C O O K & S O N (B A N K E R S ) L td .

0 .4 %


■ ■ 7 .4 %


I 0 .6 %

* P a rt o f a n a tio n w id e su rvey of over 5000 c o m m e rc ia l e s ta b lis h m e n ts o f th e typ e s lis te d below. 718 c o m p le te d q u e s tio n n a ire s ^
w ere re ceive d fro m th e 1000 re ta il sto re s a nd a re used as th e 100% base in th is g ra p h .


For a copy of the complete 26-page survey report “Documented Reas­
surance” send in this coupon.

A survey was recently con­
ducted by the noted inde­
pendent research firm of
Erdos & Morgan, Inc. Its
purpose was to determine
which one of five different
travelers checks was most acceptable to
hotels, motels, restaurants, retail stores,
gasoline stations, airline and steamship
sales executives throughout the United
States —with special emphasis on Cali­
fornia and New York.
The findings are conclusive: when
you sell your customer American E x­
press Travelers C heques, you can be
sure he will be able to spend them for
goods and services.

To : M r. M . E. L ively, Vice President
A m erican E xp ress Com pany
65 Broadw ay, New Y o r k , N . Y . 10006

Please send a copy of the Erdos & Morgan, Inc.
report “Documented Reassurance” to:
Nam e


B ank N a m e ___ _______________________________________________

A dd ress

___________________________________________ _

C it y ______________________________________________S ta te _______

American Express Travelers Cheques
Federal Reserve Bank of St. Louis

N o r t h w e s t e r n Banke r, D e c e m b e r, 1965

E.D.P. businesses will
A i / Ita la
i* r o r r s s io i/ W o r k s hriculture
p toandserve
be o
as speakers and ses­
sion leaders.
l'fa a n r tl f o r S i. L o u is . M a r r h # / . 1.1
PROVIDE bankers with infor­
T Omation
by which they can evalu­

to the data processing needs of farm­
ers and other agriculturally oriented
businesses. Case histories will be pre­
sented by bankers already experi­
enced in farm data processing, and
provision will be made in the pro­
gram for concurrent sessions on areas
of special interest.
The workshop will include lectures,
panel discussions, workshop sessions,
special interest sessions and case his­
tories. Outstanding authorities in ag-

ate the use of their automated equip­
ment in providing services to agri­
cultural customers. The A me r i c a n
Bankers Association will hold an Ag­
ricultural Data Processing Workshop
on March 14-15, 1966, at the Chase
Park Plaza Hotel in St. Louis.
The workshop will expose bank
data processing specialists, farm spe­
cialists, and correspondent personnel

fo r
A g ric u ltu ra l

P rofessional


In d iv id u a l

R E C -C H E K is a p ro v e n re c o rd k e e p in g sys­
te m .
S a tis fie d

cu sto m e rs


e x p e rie n c e d

th e

ease and a c c u ra c y o f m a in ta in in g in co m e and
expense re c o rd s b y c o d in g .
C h e cks and d e p o s its are c o d e d ; R E C -C H E K
does th e rest.
In d iv id u a l

tra n s a c tio n s


Hans W. Wanders has been elected
president of National Boulevard Bank
of Chicago, effective January 1, 1966.
He succeeds Irving Seaman, Jr., who
will become chairman of the executive
committee and will continue as chief
executive officer.

I. S E A M A N

(The M o d e rn R e c o rd k e e p in g System )


Chicago Executive Change


H. W . W A N D E R S

It was also disclosed that Hugh M.
Driscoll, vice chairman, will retire at
the end of this year after more than
forty years of service.
In announcing the changes, Mr. Sea­
man cited the bank’s growth in de­
posits, in assets, number of accounts,
number of employees, and the con­
tinued growth of the near northside,
a most dynamic and exciting part of
Mr. Wanders, who has been elected
a director of the bank, joined National
Boulevard in February, 1965, as a
divisional vice president in the com­
mercial department. Prior to that
time he had eight years of Chicago
banking experience and is a graduate
of Rutgers University School of Bank­
Following graduation from Yale in
1947, he joined the General Electric
Company and later was with the
Plaskon Division of Libbey-OwensFord Glass Company. In 1955 he be­
came an associate in McKinsey and
Company, management consultants.
Mr. Seaman became president of the
bank in November, 1961. Under his
leadership National Boulevard has
shown a substantial growth in all
phases of its activity.

m o n th ly , g ivin g m o n th and y e a r-to -d a te to ta ls .
Franchises a v a ila b le .

C o n ta c t:

Box 59
Nevada, Iowa
N o r t h w e s t e r n Banker, D e c e m b e r, 1965
Federal Reserve Bank of St. Louis

Portland Banker Dies
Frank Holmes, Jr., former senior
vice president of the United States
National Bank of Oregon, died in
Portland last month. At the time of
his retirement, April 1, 1965, Mr.
Holmes was in charge of the business
development department, and had
completed 43 years as a U. S. National
staff member.
Federal Reserve Bank of St. Louis

G E O R G I A - P A C I F I C



it o í .1 I* Itut s T ra vel f a n ! "L o tta **

bility for the cheques until they are
signed by him in his office.

Bank of America has an­
nounced the introduction of a card

Plan Operations Workshop

of “avouchment” for valued custom­
ers of its travelers cheques seller bank
correspondents. With the card a cus­
tomer may draw up to $250 in travel­
ers cheques with a personal check.
Vern C. Richards, vice president in
charge of the bank’s world-wide trav­
elers Cheques sales, said the conven­
ience in the card lies with the person
who unexpectedly runs out of cash
away from home and has only per­
sonal checks to cover additional needs.
Mr. Richards said that Bank of
America would assure payment of the
personal check to any accommodating
The avouchment card is good for
$250 of B of A travelers cheques for
one time only. It must be surren­
dered to the bank accepting the per­
sonal check of the holder and will be
held by that bank until the check has
been cleared and paid.
Bank of America leaves it up to its
seller correspondents to select custom­
ers eligible for such a card. The
card has an expiration date of up to
one year, set by the issuing bank.
Earlier this year the bank devel-

An Operations Research Workshop
co-sponsored by The American Bank­
ers Association and NAB AC, The As­
sociation for Bank Audit, Control and
Operation, will be held in Chicago,
111., on December 15 through 17 at the
Palmer House.
Registration materials have been
mailed out to all banks with over $50
million in assets. Applications will be
accepted on a “first come” basis with
a maximum of 150 registrations for the

Name Chase Senior Officer

G L O B A L C A S H — P retty Carol Boedeker
dem onstrates the fro n t and b a ck side o f
B ank o f A m erica ’ s new “ avouchm ent
card,” a handy little item fo r the person
running out o f cash.

oped its VIP application for business
executives too busy to obtain their
own travelers cheques. Under the
application system he signs for the
cheques and sends his secretary to ob­
tain them. He assumes full responsi-

What is
the Canadian

Elect Boatmen’ s President

T h e G N P in C an ad a last year in ­
creased by 9 % over 1963 to $47
billion. I f you w ant to help clients
e x p a n d in t o th is f a s t -g r o w in g
m a rk et, B ank of M o n tre a l s
i n f o r m a t iv e m o n t h l y B u s i n e s s
R e v i e w can h e lp a n sw e r y o u r
questions. I t ’s you rs for th e asking.
F or details on the m a n y other
services offered A m erica n ban k ­
ers by C a n a d a ’s First B an k, visit
our nearest U . S. Office.

The Bank of
Montreal supplies
the answers


Ytb— W e d e l i v e r full s e r v i c e
banking to farmers, ranchers and

New York - Houston • San Francisco • Los Angeles



Northwestern Banker. D e c e m b e r, 1965
Federal Reserve Bank of St. Louis

David H. Morey has been named
president and chief executive officer
of Boatmen’s National Bank of St.
Louis, succeeding Harry F. Harring­
ton, who will continue as chairman.
Mr. Harrington had been president
of Boatmen’s since 1954 and chairman
since 1961.
Arthur F. Boettcher, senior vice
president in the commercial depart­
ment, was named chairman of the
executive committee. Hugh S. Hauck,
vice president, succeeds Mr. Morey as
senior vice president and trust officer.
David L. Colby and Ethan A. H.
Shepley Jr. were promoted from vice
president to senior vice president in
the commercial department.
Boatmen’s new president joined the
bank in 1931 and has served as senior
vice president and trust officer since

agribusinessmen. A franchise

CotxytACamacla..SpiwiAtKe. UJotfid
CH ICAGO: Board of Trade Bldg.
141 West Jackson Blvd.

Robert J. Pollock has been named
a senior vice president by Chase Man­
hattan Bank NA., New York.
Mr. Pollock heads the systems and
standards division of the bank opera­
tions department and has over-all
supervision of the bank’s automation
program, which at present includes 28
He joined Chase National Bank in
1927 as a page. He was appointed an
assistant treasurer in 1951, a second
vice president in 1953, and a vice
president in 1957.
Mr. Pollock is a member of the com­
mittee on automation of the Ameri­
can Bankers Association.


Christmas Club Totals
1 3 9 ,0 0 0 At Manufacturers
Over 139,000 New Yorkers received
checks totaling $17,657,000 in varying
amounts from their Christmas Club
accounts at Manufacturers Hanover
Trust Company.
Federal Reserve Bank of St. Louis







Chicago A d o p ts F reig h t P la n
TARTING January 1, 1966, some
80 Chicago area banks through
the Chicago Clearing House associa­
tion will adopt a freight payment sys­
tem. It will permit Chicago firms to
pay their freight bills automatically
through their bank.
Freight payment plans are not new,
however, the Chicago system is re­
puted to be the first time banks in a
major center have agreed to clear
freight bills among the banks.
Under the new freight payment
plan, the carriers will deposit freight
bills for shipper members of the plan
in the carrier’s bank. The bank will

credit the carrier’s account and pre­
pare drafts to be exchanged to the
shipper’s account. These drafts will
be cleared through the Chicago Clear­
ing House in the same manner as
checks, and copies of the bills will be
mailed by the bank or the carrier to
the shipper. In case of overpayment,
the shipper will submit a correction
form and draft and the bank will im­
mediately credit his account.

Advocate Chicago Branching
Chicago businessmen were told last
week that branch banking is imper­

ative for Illinois if the city’s financial
community hopes to compete success­
fully with New York and California.
James E. Day, president of the Mid­
west Stock Exchange; Donald M.
Graham, vice chairman, Continental
Illinois National Bank & Trust Co.;
and Gaylord A. Freeman Jr., vice
chairman, First National Bank, Chi­
cago, all alluded to the branching
issue at a conference exploring the
city’s growth as a financial center.

St. Paul Bank Emphasizes
International Banking
Greater emphasis will be placed on
international banking by the Ameri­
can National Bank and Trust Com­
pany, St. Paul, according to John F.
Nash, president.
Heading the increased activity will
be George Cobb, vice president of cor­
porate development and international

S A L U T E TO S W E D E N w as attended b y
le ft to rig h t: Sven W . Dahlman, dir. o f
In tern a tion al A ffairs, F ed era tion o f S w ed­
ish In dustries; John F. Nash, pres., A m er­
ican N ation al B ank and Trust Com pany,
St. Paul, and Elm er L. Anderson, chmn.,
H. B. Fuller Com pany, St. Paul.

services. He will be assisted by Tom
Sample, assistant vice president.
The bank’s officers and directors
hosted a luncheon recently honoring
a visiting Swedish trade mission. Mr.
Nash officially welcomed the members
of the group.
Highlighting the program was an
address by Elmer L. Anderson, chair­
man of the H. B. Fuller Company, St.
Paul, and former governor of Minne­

Acquires Mortage Firm

G et up to the m inute! Here’s the very latest summary of information about Arizona
. . . just off the press . . . current, accurate and dependable statistics. Data on agricul­
ture, banking, construction, education, employment, housing, manufacturing, mining,
population, real estate, retail trade, tourism . . . and much more. 48 pages of tables,
charts and maps. FREE for the asking. Write: Research Dept., Valley National Bank,
P. O. Box 71, Phoenix, Arizona 85001.

N o r t h w e s t e r n Banker, D e c e m b e r ,
Federal Reserve Bank of St. Louis


La Salle National Bank has ac­
quired one of Chicago’s oldest mort­
gage banking c ompani es, KranszNeuses Mortgage Company, founded
in 1885.
The purchase, for an undisclosed
amount of cash, was reported recently
by Harold Meidell, chairman. Three
years ago La Salle bought D. R. Beau­
mont Company, a mortgage banking
firm, and made Mr. Beaumont vice
president in charge of the real estate
loan department. Prior to that time
La Salle had no mortgage banking op­


$6.2 billion
in securities are kept
in permanent safekeeping
for the 2,150 of our
correspondents who
use this service.
Federal Reserve Bank of St. Louis

The Bank that is known by the correspondents it keeps
Member Federal D eposit Insurance Corporation

N o r t h w e s t e r n Banker, December, 1965





t*, '''v\


(Dsloa , g ic v M A .

j l .

S ja x m v :

Comptroller of the Currency, Washington, D. C.
With the administrators in Wonderland, D. C.
establishing guidelines for everything from the
aluminum industry to diaper factories, perhaps
it is time to reverse the procedure.
Viewing some of your more recent actions, it
seems to us that your office might be a good place
to start. Banks throughout America could well
establish some guidelines for the office of the Comp­
troller, and in doing so they may wish to reconsider
the benefits of a dual banking system with its builtin, self correcting mechanism to avoid monopoly.
It is evident that you are continuing to do every­
thing possible to thwart state laws, particularly in
in regard to branching.
We were pleased to see that the second U. S.
appeals court last month ruled that you are bound
by the letter of state law in approving national
bank branches.
The appellate court for the key District of Co­
lumbia agreed with an earlier decision that “ the
measuring stick of national branch banks is state
In a brief order, the court upheld a district court
ruling that you exceeded your authority granting
a de novo branch to First Security Bank of Utah
NA, Ogden, Utah. The state law limits branching
to offices resulting from mergers in all cities except
Salt Lake City where a home-office bank operates.
The court did not write an opinion to accompany
the order, which it handed down one week after
hearing oral arguments in the case brought by
Commercial Security Bank, Ogden.
The appeals court did, however, cite last month’s
opinion of the 10th Circuit Court of Appeals in
Denver, which reversed a lower court ruling, where
your position originally was upheld in an identical
case. That case was brought by Walker Bank and
Trust Co., Salt Lake City, against First National
Bank of Logan and your office.
Legal observers view the ruling in Washington,
D. C., as having national significance while the
Denver ruling has only regional effect.

N o r t h w e s t e r n Banker, D e c e m b e r ,
Federal Reserve Bank of St. Louis


jjtom the Pubftlaii0i
This is because the legal residence of the Comp­
troller, as a Federal Officer, is the District of Co­
lumbia, and you can be sued there no matter in
which states any contested action occurs.
Therefore, if the two appeals court rulings are
not contested in the Supreme Court, or if they are
upheld by that body, any bank which believes a
branch ruling of the Comptroller conflicts with
state law can enter suit in the District of Colum­
bia and have the force of the precedent-setting
Commercial Security ruling working in its favor.

O fiW c (jJ h iq h L ( p a lm w v :
Chairman, House Banking and Currency Committee,
Washington, D. C.
Following the close of the first session of the 89th
Congress, you are continuing your attack on bank­
ing. Now, you have called for “ a full-scale investi­
gation of all the lobbying activities of the American
Bankers Association, as well as all six banks seek­
ing retroactive exemptions from antitrust laws.”
In a speech before the Natonal League of Insured
Savings Associations, you added, “ lobbying activi­
ties of the A B A this year have been ‘more blatant
than anything I have seen in my 37 years in Con­
gress.’ A B A lobbyists were ‘spending money like
a bunch of drunken sailors.’ ”
Chagrined by what you termed a ‘rump session’
of your committee to illegally report out the bank
merger bill, you warned that you would not allow
your committee to be turned into “ a puppet show
for the A B A and its other big banker members or
any other vested interests.”
During the next two months, you will be calling
on members of the banking industry to “ join you
in this investigation.”
Knowing your background in attacking practi­
cally every other phase of the banking business,
including the Federal Deposit Insurance Corpora­
tion and the Federal Reserve, it seems to us that
bankers throughout the nation should think twice
before backing your efforts. You may have diffi­
culty in enlisting the support of your own com­
mittee members and your other colleagues in the

"You know Bank Building
Corporation is the financial
building expert,
but did you know. ..
'Mr. Jack Miner
Mid-Continent Division

that 80% of the cost of
building the Pikeville
National Bank and Trust was
spent with local contractors?'


I p liä j Ü


rm -

Bank Building Corporation did preliminary con­
sultation, overall design, interior furnishing, and
seryed as prime contractor in building the Pikeville
National Bank and Trust, Pikeville, Kentucky. The
cost of that project was money spent on all phases
of its design and construction, from the most
preliminary stage to opening day. And a full 80%
of the total cost was spent among sub-contractors
and suppliers in the Pikeville area.
The point is that you may employ the services of
the world's largest, most experienced financial
building specialist and still keep the greatest per­
If the planning of new or remodeled quarters is imminent,
consider these additional facts about Bank Building Cor­
poration: You may select any one or combination of our
services to suit your requirements. We, and we alone,
guarantee all cost estimates regardless of your location*
Federal Reserve Bank of St. Louis

centage of money spent in your own community.
Furthermore.this is not an isolated statistic selected
just for the ad . . . on a national average, 83.8% of
the total cost of complete building projects han­
dled by Bank Building Corporation remains in
the community.
*Mr. Miner will be happy to furnish you with com­
plete information about our company's operation.
Write directly to him at 1130 Hampton Avenue,
St. Louis, Missouri 63139. Or phone collect Area
Code 314, Ml 7-3800.


Home Office: 1130 Hampton Avenue, St. Louis, Missouri 63139
Offices in Atlanta • Chicago • Dallas • New York • San Francisco


The Central Rational Choir

To You And Your Family From
All Of Us At Central National Bank

o r t h w e s t e r n Banker, December, Ï965
Digitized N
Federal Reserve Bank of St. Louis

N o r t h w e s t e r n Banker, D e c e m b e r , 196S
Federal Reserve Bank of St. Louis

Plan B of M Ag Awards
A competitive $100,000 awards pro­
gram, to develop 50 leaders in Can­
ada’s farming communities in all parts
of the country, was announced by G.
Arnold Hart, chairman and president
of the Bank of Montreal.
Objective is to recognize and devel­
op farm leaders. A total of 50 awards
at $2,000 each will be given.

Bankers Trust Appoints
International Officers
Three appointments in the interna­
tional banking department of Bank­
ers Trust Company, New York, were
announced by William H. Moore,
chairman of the board of directors.
Max E. Gevers, first vice president,
was named deputy head of the inter­
national banking department; Ells­
worth Donnell, vice president, suc­
ceeds Mr. Gevers as head of the de­
partment’s foreign division; and Loren
D. Keys, Jr., vice president, replaces
Mr. Donnell as head of the Far East
group of the foreign division.

Joins Morgan Guaranty
John K. Sands has been named a
vice president of the Morgan Guar­
anty Trust Company, New York.
Mr. Sands, 43, formerly a general
partner in the investment banking
firm of W. C. Langley & Company, is
assigned to the unit that specializes
in counseling clients on mergers and
asquisitions. He was graduated from
the University of North Carolina in
1948 with a bachelor of arts degree.
Before entering investment banking,
he was in the management consultant

Valley o f Arizona Increase
The F irs t N a tio n a l B a n k, E. P eoria, III.

W e go a ll out
fo r y o u r cu stom ers
LeFebure makes Motor Banking attractive,
convenient and efficient for your customers,
and for you. Window units can be attractively
placed in any architectural styling. Glass

arrangement offers maximum visibility. The
transistorized sound system assures clear
com m unications im m e d ia te ly ! Smoothoperating drawer slides with a minimum of
effort and noise. Inside, select from LeFebure
under-counter units designed for efficient
teller function on all transactions. Write for
new Motor Banking booklet. LeFebure Corpor­
ation, Cedar Rapids, Iowa, 52406.




r t h w e s t e r n Banker, December, 1965
Digitized for
Federal Reserve Bank of St. Louis


Motor Banking



Authority to increase Valley Na­
tional Bank of Arizona’s capital stock
account from $15,509,490 to $16,604,398
by payment of a 10 per cent stock div­
idend will be sought from sharehold­
ers at the bank’s annual meeting Feb­
ruary 16.
Walter R. Bimson, Valley National
chairman, said the proposed stock div­
idend, which is subject to approval by
the Co mp t r o l l e r of the Currency,
would raise the institution’s outstand­
ing capital stock total from 6,037,963
shares to 6,641,759 shares, par $2.50.
Mr. Bimson noted that approval of
the proposed payment in stock would
mark the ninth consecutive year in
which Valley National has issued a
stock dividend, and the 10th such dis­
tribution in the last 11 years.
Valley National shareholders voted
a 10 per cent stock dividend and a
two-for-one capital stock split at their
annual meeting last February.
Federal Reserve Bank of St. Louis


O '^ o e ^ '

... f r o m

n o u r


F. D. /. C.

Northw estern

Banker, D e c e m b e r,



We know California business from head...

to toe.
From farming to retailing, mining to manufacturing,
Bank of America is a working partner in every major
field of California business. And this firsthand know­
ledge of the State’s econom y can prove invaluable to
you. W h en y ou have q u e stio n s a b o u t C a liforn ia
business prospects, plant sites, credit, collections or
investment opportunities, one of Bank of America’s
N o r t h w e s t e r n Banker, D e c e m b e r , 1965
Federal Reserve Bank of St. Louis

more than 800 branches will be close to the answer.
For com plete correspondent service, get in touch
with our National Division, 300 M ontgom ery Street,
San Francisco or 650 So. Spring Street, Los Angeles.



Ne«r System
Bo Farm Bookkeeping
Rec-Chek1® Adaptable to Other Accounts

COMPLETE record-keeping sys­
tem for farms, small businesses
and personal accounts has been
devised by Nevada National Bank of
Nevada, Iowa. This $8,000,000 deposit
bank in a town of 4,500 people in cen­
tral Iowa has trademarked the name
“ Rec-Chek” and copyrighted a system
that in practice is a by-product of the
normal check clearance procedure.
When Nevada National set up its
new computer center last fall, Sam
McHose, president, and his associates
began studying ways to further ex­
tend the facilities of the equipment to
the personal needs of bank customers.
Since Nevada National is the largest
farm lender in predominantly agricul­
tural Story County, it was logical that




For years one of the farm operator’s
biggest headaches has been proper
maintenance of records, not only for
his own use as a good businessman,
but for tax purposes. Kermit J. And­
erson, executive vice president and
head of the Nevada National farm de­
partment, has first-hand experience
with this knotty problem as owner of
a farm that does livestock feeding.
Even if a bookkeeping or tax serv­
ice prepares the farm operator’s rec­
ords for him, the farmer himself must

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C orn


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46 00

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by the

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Records Are Farm Problem

nrn _ ny 1/

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attention was given first to accommo­
dating farm cutomers. The service
now has been extended to personal
accounts and small business firms.

L im e

G a s , F u e l, a n d O il


H ay


In su ra n ce


In terest


S tra w


L a b o r H ir e d


M is c e lla n e o u s


O a ts a n d


P a t r o n a g e D iv .


S u p p lie s P u r c h a s e d


S w in e P u r c h a s e d

21 00

115 0 0

6 0 47

60 47

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W heat


S w in e R a is e d


T axes


U t i lit ie s

19 80

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1345 50
196 33

1786 57

8 2 5 48

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1125 00

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1 7 00 00
100 75

530 00

2 8 0 8 51

750 75

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1200 00

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S A M P L E m on th ly statem ent on Rec-Chek system lists all incom e and expense items
both i or the month and year to date. Checks not en coded w ith the special expense
or incom e accou nt num bers are listed separately. The entire statem ent also lists such
item s (w ith accou n t num bers) as pou ltry, repairs and m aintenance, seed, storage and
w arehouse, v e terin a ry and w ages received, as w ell as several other items. Customer
gets this statem ent each month as a printout from the ba n k ’ s data processin g system .
Federal Reserve Bank of St. Louis

initiate the original material on which
these records are based—checks, des­
ignating what the purchases are for;
receipts, memos and other paperwork
going into such bookkeeping. If he
does this work himself, he must make
all these entries generally by hand,
relying on an accumulation of papers
and his memory.
Nevada National pinpointed the
problem accurately as one of input
data—getting the necessary data on
paper right at the source. So the
Rec-Chek system keeps track of the
farm customer’s records through the
easiest method of input, his checking
account, and does the record-keeping
through the bank’s computer center.
Enter Code on Check

Each standard type of farm trans­
action receives an account number
just as is done in most businesses.
The names and numbers of the ac­
counts are printed on the back of the
checks and deposit slips he uses.
When a purchase is made for the farm
operation, the proper account number
is looked up on the back of the check
and entered in a specially printed
boxed area at the bottom on the face
of the check. If cattle purchased, for
instance, would be account 309, he
would merely enter 309 in the small
box and give the check to the seller.
When the check clears Nevada Na­
tional, this account number 309 is en­
tered into the system on that custom­
er’s records. Each check is kept track
of in similar fashion. At the end of
the month, the farmer gets a complete
categorized print out from the com­
puter in addition to his monthly state­
ment. It lists all check transactions
by account number, with cumulative
total if there is more than one pur­
chase in a given category, as well as
a total at the bottom of the column
for all farm business checks written.
A second column lists all checks and
money deposited, b e a r i ng account
numbers reflecting the source of farm
income. A third column gives a to­
tal for the year to date of all expenses

(Turn to page 101, please)
Northw estern

Banker, D e c e m b e r , Î 9 6 S


ANY bankers are convinced
that long-term programs are
the “best” (and sometimes the
“only” ) means of generating new busi­
ness simply because that has been the
accepted way of doing things down
through the years. It is my conten­
tion that such a view is, for the most
part, based upon the bankers’ resist­
ance to change.
For many years our industry was
noted for its refusal to change. Our
buildings were lined with marble and
our tellers’ windows were separated
from their customers by prison-like
steel mesh. This somehow made for
a psychological distance between cus­
tomer and employee that was more
of a barrier than the physical separa­
When the great depression of the
early 30’s closed many banks (and re­
member, there was no deposit insur­
ance in those days and bank stock
ownership carried double liability) we
were all tarred with the same brush.
The politicians, and a large percentage
of the public, were looking for a scape­
goat. And where could you find a bet­
ter one than a glassy-eyed ogre sitting
behind a big mahogany desk who had
never shown any interest in the com­
mon man? The banker was a “nat­
ural” and he bore the brunt of jokes
which made the people forget Henry
Ford and the Model T.
The monumental task of rebuilding
public confidence in banks and respect
for the people who operated them,
brought the bankers to the realization
that a sales job was necessary. And
they did a good sales job. The banker
has long since regained his place in
the sun and banks are enjoying almost
complete public confidence—it must
be admitted that FDIC has not exact­
ly hurt the cause.
The necessity to sell himself to the
public has alerted the banker to the
efficacy of selling the services of his
bank. And, after all, that is the only
thing we have to sell—service.
It is not enough that you render
service which is better than your corn­


Banker, D e c e m b e r, 1965
Federal Reserve Bank of St. Louis

Commercial Bank of
Daytona Beach, Florida

petitor’s and to sell it in a superior
manner to his. You must render
more and better service and sell it
more expertly than your own bank
did ten years ago, or five years ago,
or even one year ago.
How are we going to persuade the
customer to use the myriad of serv­
ices we offer today? We must sell.
A recent magazine article, for in­
stance, pointed out that the two most
successful mass merchandisers — de­
partment stores and super markets—
continually re-examine their selling
techniques. And that is exactly what
we bankers must do. It is difficult to
see how we can effectively sell our
many services without the use of
crash programs. It should be remem­
bered, however, that one of the things
involved in crash programs is adver­
tising that makes crash programs
It has been aptly demonstrated by
me r c h a n d i s e r s of over-the-counter
products — indeed, insurance, securi­
ties, automobiles, almost anything in
the spectrum of American economics
—that new products and new services
can be “sales engineered,” by properadvertising and marketing, to knock
the old and reliable product or service
into a cocked hat and become the
thing the public wants.
More and more bank services be­
come competitive, and a crash pro­
gram that’s well conceived and well
organized will fail if it isn’t properly
This, therefore, is a challenge to ev­
ery member of FPRA. He must ask
himself the soul-searching question:

“Am I opposed to crash programs
because I don’t think they will accom­
plish what management ivants, or am
I opposed because I don’t have a skill­
ful advertising and merchandising pro­
gram that will justify management’s
belief that the prograin is a good
Crash programs provide an opportu­
nity for the advertising and merchan­
dising people in banking and to ex­
tend their influence with general man­
agement, and such programs must be
included as a part of the meat and po­
tatoes of bank advertising and mer­
chandising, and if programs promul­
gated by public relations directors—
involving all the elements of people
persuasion are successful — it follows
that more and more public relations
and advertising officers will become
vice presidents and board members of
the banks they serve.
In conclusion, I submit the follow­
1. This is an era of change in our
business world and banks, bankers
and banking are a definite part of this
changing picture.
2. Bank services are expanding rap­
idly, both as to type and number.
3. With change and expansion in
banking, it behooves us to re-examine
our advertising and selling methods.
4. Crash programs are not yet wide­
ly used because of bankers’ reluctance
to change.
5. Crash programs lend flexibility to
the over-all advertising and public re­
lations effort which simply is not
available in the use of long-range pro­
6. Commercial bankers are rapidly
becoming convinced that they can no
longer afford to cater only to a few
large customers. The masses must be
served and the most effective way to
get them to come into the bank is
through crash programs.
The use of the crash program is a
new challenge, and certainly it will
widen our respective horizons if we
accept the challenge and make it work
in our own banks.— End.


ssociation Discuss Some Pro’s and Con’s

Business Campaigns Effective?
ANKS have been criticized in
the past for not utilizing many
of the techniques of industry
in the field of business development.
Similar criticism could also be leveled
at banks because of an inertia in uti­
lizing developments in the field of be­
havioral science, particularly in the
field of staff sales.
The use of short-term staff sales
programs, highlighted by the rivalry
of a contest, or sugar-coated by elab­
orate prizes, is the result of a belief
that bank employees will perform well
in the sales field only when there is
a tangible reward in direct relation­
ship to the individual efforts.
A short-term program that has a
definite beginning, and usually a wel­
come conclusion, is a compromise be­
tween the ideal staff program and one
with severe limitations. Usually a
bank is convinced that it is impossible
to maintain a never-ending sales effort
and, because of this belief, a short­
term program is selected.
All banks would prefer a continu­
ous staff sales effort that prevails
through the entire year. This is in
sharp contrast to having employees
involved in a contest with an ending
date and a feeling of “Well, I don’t
have to sell any more—I’m glad that’s


The question, therefore, is why
banks are willing to accept the phi­
losophy that they cannot motivate
their employees to solicit business on
a continuous basis. If this is so, and
the result is a compromise through
the use of short-term programs, bank
salesmanship has a definite limitation
with a contrast of periods in which
employees are supposed to sell and
periods in which they are not ex­
pected to sell.
To accept this concept of compro­
mise is to reject the findings of be­
havioral scientists in industry who
have determined that employees can
be motivated in many ways. It is sig­
nificant that banking has been willing
to use the findings of behavioral scien
Federal Reserve Bank of St. Louis

(which is against the concept of team
work) or questions as to whether the
new account was really solicited or
was walk-in business. In a full-time
program these elements are not sig­
nificant since even an unearned credit
does not give an advantage to the per­
son receiving the credit at the ex­
pense of the person who did not re­
Vice President
ceive the credit.
First National Bank
Quite obviously, if there is knowl­
o f Hawaii, Honolulu
edge at the staff level that a contest
is about to be launched, those who are
in a position to secure new business
tists in working areas other than staff for the bank would tend to delay the
selling. Well-designed machines, bet­ acquisition of accounts until after the
ter working environments, scientific contest had begun so that they could
illumination, pre-hiring tests, work receive the credits.
music are all the products of indus­
There are many banking transac­
trial research in behavior that have
tions that do not lend themselves to
been accepted by banks. However, the
a cut-off point. This promotes a
flaw lies in the fact that these findings
tendency for employees to go after
are primarily based upon the regard
business which is of an immediate na­
of a man as an adjunct of a machine,
ture and disregard the more involved
as distinguished from the more com­
but often more profitable transactions.
plex concept of an individual as a
The short-term contests also have
sales person.
to introduce temporary or
Another disadvantage of the short­
in contrast to a per­
term program is the pressure to close
where this is not
a sale during the period of the con­
test. The eager individual who knows
Pe r ma n e n t p r o g r a ms can and
that he must consummate the sale
within the next 48 hours so as to should have rewards. These can come
squeeze it in the contest period is go­ in the form of prizes that are earned,
ing to use undue pressure that may direct financial compensation, or, even
drive a prospect away. This need more important, recognition.
Behavioral science tells us that in­
doesn’t exist where the program is
continuous and the element of contest dividuals are goal seeking animals,
is missing.
and if the goals are defined and at­
Most short-term programs are based tainable, great effort will be exerted.
The continuous sales program lends
upon the concept of a contest. This
very word implies that there must be itself admirably to employee motiva­
winners and, consequently, losers. tion. Rewards can be tangible, they
During the contest there are many can be coupled with needed recogni­
who realize that they have no chance tion, and they can be cumulative.
of winning and as a result, they stop
But, above all, a continuous sales
trying. In these instances, the real effort defines business development
selling effort dwindles down to the as a basic, integral part of the job to
few who are in a strong leadership be done. Once an employee becomes
sales-minded he remains sales-minded
Another disadvantage of a contest in such a program, with ever-increas­
deals with the constant employee com­ ing alertness and sensitivity to busi­
plaints. There are questions as to ness development opportunities. —
who r e al l y s ol i c i t ed the account E n d .
N o r t h w e s t e r n Banker, D e c e m b e r, 1965


Mr. Johnson, responsible for a detailed study of the Uniform
Commercial Code prior to its becoming law in his state last
September, is well-acquainted with the measure's provisions. In­
asmuch as the Code will become effective in five-midwestern
states in July, 1966, his comments should prove helpful to bankers
looking forward to employing the benefits of the new law.

GREAT deal has been written
and said in the last few months
concerning the Uniform Com­
mercial Code. In this article I am
going to deal primarily with the com­
pletion of the forms necessary to per­
fect a valid security interest.
I believe that the very heart of the
Code is covered in Article 1-203 which
is entitled “Obligation of Good Faith.”
This is probably the shortest article in
the Code and very simply says, “Every
contract or duty within this act im­
poses an obligation of good faith in its
performance and enforcement.”
The repealer section of the Code not
only repeals the old chattel mortgage
laws, which are badly outdated, but
also does away with the volumes and
volumes of Case Law which have per­
verted the old basic laws to the point
where, in recent years, the average
banker really had no idea at all con­
cerning his position with reference to
collateralized loans.
The banking fraternity now has a
law whose basic principle is common
sense, good faith, and intent. If,
in our day to day work, we make
some errors, we will not necessarily
find ourselves at the mercy of an un­
friendly court since every court up
to this point seems to be willing to
follow the guide lines set forth in the
Code and to rely primarily on the in­
tent between the parties.
In recent years, I believe that all of
us have become somewhat lax in the
taking of collateral. The adoption of
the Uniform Commercial Code should
supply us with the incentive to do our
jobs properly in the taking of collat­
eral. It certainly supplies us with the
tools to do so.
The UCC provides us with the ve­


N o r t h w e s t e r n Banker, D e c e m b e r , ¡'965
Federal Reserve Bank of St. Louis

hicle for entering into financing which
has been practically impossible in the
past, such as inventory financing, and
gives us additional versatility in the
areas of accounts receivable and agri­
cultural financing. However, each
and every one of us needs to properly
learn the mechanics of operation un­
der the Code, and we certainly need
to do our homework properly.
Security Interest

In order to obtain a security inter­
est under the UCC three things must
be present.
First, we must have a properly exe­
cuted and filed Financing Statement.
Second, we must have a properly exe­
cuted security agreement. Third, there
must be indebtedness. Anytime these
three requirements are met we have
a properly attached security interest
as of the date of filing of the financ­
ing statement. (It should be noted
that the order in which the three re­
quirements come into existence is not
important, and that any time the three
requirements are met the security in­
terest attaches as of date of filing of
the Financing Statement.)
Since the filing date of the Financing
Statement is the key to the attaching
of the security interest, our first
thought should be given to its comple­
tion and filing.
Financing Statement

Many complex forms have been de­
signed to serve as Financing State­
ments; however, requirements of a
Financing Statement are relatively
simple and basically are as follows:
Financing Statement must contain:
1. Name and address of debtor.
2. Name and address of secured

3. Types of items of collateral.
4. Location of collateral if it is crops
or fixtures attached to real estate.
5. Must claim proceeds or products
of collateral if desired.
6. Signature of debtor.
7. Signature of secured party.
Article 9-402 of the Code says, “A
Financing St at ement substantially
complying with these requirements is
effective even though it contains mi­
nor errors which are not seriously
It should be noted here that the
Financing Statement need not be
dated since date of instrument means
nothing and control is by date of fil­
Since there seems to be confusion
in the minds of some people concern­
ing “proceeds,” we might look at Artile 9-306 of the Code which states the
following: “The word proceeds means
whatever is received when collateral
is sold, exchanged, collected, or other­
wise disposed of.” The term includes
the account arising when the right to
payment is earned under contract
rights. Whether the sale of collateral
was authorized or unauthorized the
secured party has a security interest
in the debtor’s cash and bank accounts
equal to the amount of cash proceeds
received and commingled or deposited.
This right exists even in the case of
bankruptcy proceedings provided the
proceeds were commingled or depos­
ited within 10 days before insolvency
proceedings were instituted.
I would like to point out here that
in the official comments on the Code
they say, “ A claim to proceeds in a
filed Financing Statement might be
considered as impliedly authorizing
sale or other disposition of the collat­
eral depending on the circumstances


Uniform Commercial Code
Vice President
The Omaha National Bank
Omaha, Nebraska

of the parties, nature of the collateral,
the course of dealing of the parties,
and the usage of the trade.” Even
taking into consideration the above
comments on proceeds I believe that
in the majority of cases proceeds
should be claimed.

The biggest deviation in the Code
among the states seems to arise in the
filing requirements; therefore, I am
not going to discuss filing location and
instead suggest that you obtain filing
instructions from your bank’s attorney
(see Article 9-401). I would, however,
like to point out that the Code says,
“ Presentation for filing of a Financial
Statement and tenderer of the filing
fee or acceptance of the statement by
the filing officer constitutes filing un­
der this law.” The Code also says,
“When a secured party has in good
faith attempted to comply with the
filing requirements but has not done
so correctly, Subsection 2 makes his
filing effective insofar as it was prop­
er and also makes it good for all col­
lateral covered by the Financing
Statement against any party who ac­
tually knows the contents of the im­
properly filed statement.” This sub­
section rejects the occasional decision
that an improperly filed record is in­
effective to give notice even to a per­
son who knows of it.
Security Agreement

Although there are in existence
many types of security agreements,
the basic requirements are few and
simple. We should bear in mind that
Federal Reserve Bank of St. Louis

the Security Agreement is the actual
contract between the debtor and se­
cured party and may contain any spe­
cial terms agreed to by the parties.
However, in order to comply with the
rules, the Security Agreement must
1. Date of execution.
2. Borrower’s correct legal name
and address.
3. Complete description of collateral
(use serial numbers or other iden­
tifying marks when available).
4. Complete legal description of lo­
cation of collateral (where needed,
i.e., crops, fixtures, etc.).
5. Signature of debtor.
6. Signature of secured party.
If the debtor is a partnership the
correct legal name of the partnership
should be inserted and at least one
general partner should sign with the
designation “general partner” attached
to his signature.
With regard to the validity of the
Security Agreement, Section 9-201 of
the Code says, “Except for special pro­
visions, Security Agreement is effectitve between parties against purchas­
ers of the collateral and against all
As opposed to the broad general de­
scription of collateral used in the Fi­
nancing Statement, Section 9-110 of
the Code says that the Security Agree­
ment must reasonably identify what
it describes.

In cases where collateral is not
owned by the debtor (c o lla te r a l
pledged by a third party), careful
study should be made of Article 9-112,
subsections a, b, c, d, and e, of the

Code, and I would suggest that in
these cases you obtain an opinion from
your bank’s attorney.

We should all bear in mind that the
Code makes little reference to notes
and refers instead to indebtedness.
This reference to indebtedness in­
cludes notes, drafts, overdrafts, post­
age charges, attorney’e fees, collection
costs, sale costs, etc. This basically
is the reason why, in the requirements
shown above, I have made no mention
of the necessity of indicating the
amount of indebtedness.
This specifically is not required un­
der the Code, and in my estimation
reference to the amount of indebted­
ness at any given time in the Security
Agreement might well constitute a
weakness in the instrument itself.
Special Benefits

The adoption of the UCC brings to
us not only a good common sense
method of obtaining a security inter­
est in collateral, but also brings many
side benefits. Among these are the
floating lien on shifting stock, a prior­
ity position when goods are com­
mingled, a lien on after-acquired prop­
erty, and others.
Section 9-205 of the Code deals with
the floating charge or lien on shifting
stock and specifically refers to the
case of Benedict vs Ratner and at­
tempts to invalidate Case Law dealing
with the control of collateral and proCOMMERCIAL CODE . . .

(Turn to page 90, please)
N orthw estern

Banker, D e c e m b e r , 1965


Hinployw 0 o ###¡tvusu/ ion

■ The following article is ex­
cerpted from a speech made by Mr.
Foltz before the recent annual
meeting of the Financial Public Re­
lations Association.
ACH of your institutions may
have a different p h ilo s o p h y
about compensation and bene­
fits. And what may be a recommended
program or an answer for one bank
may be entirely wrong for another in­
Therefore, I’m going to use a “Hol­
lywood” approach in presenting my
Now what is a “ Hollywood Ap­
proach?” Prior to 1965, film producers
were satisfied to make movies about
various segments of the Bible—“David
and Bathsheba,” “ Samson and Deli­
lah” are examples.
If you’ve been reading the newspa­
pers lately, you know Hollywood is
now making a movie called “The Bi­
ble” . They’re doing the whole book.
So, I’d like to try and give you the
whole book in highly condensed form
on compensation and benefits in the
banking industry. Perhaps together
we can construct a meaningful profile
of the banking industry’s practices in
this area and of how banking com­
pares with other industries. This may
help you in comparing your own
bank’s practices when stacked up
against the industry norms.
But before we start putting a statis­
tical skeleton together, let’s answer
some basic questions: What should
compensation and benefit programs
The easy answer is “pay for services
rendered.” It’s the easy answer . . .
but not necessarily the correct one.
Banking, like other industries, is faced
with a number of problems. It is con­
cerned with a “management squeeze”
in a competitive industry where peo­
ple and service are highly important.
This “management squeeze” is par­
ticularly critical today . . . and man­
agement must solve this problem for
a firm to continue growing.
The compensation and benefit pro­
gram is one answer to this problem.


N o r t h w e s t e r n Banker, D e c e m b e r,
Federal Reserve Bank of St. Louis


But highly important to the success
of the program are its construction
and objectives.
Compensation and benefits must be
looked at together . . . they must have
a “total compensation” orientation.
Because, while there is seldom a sub­
stitute for a good salary, the total
compensation package which includes
benefits, is important in helping man­
agement to attract, retain, motivate
and reward high caliber employees.
The compensation program today
must be a balance between salary and
benefits—each working to fill specific
needs. But how much is paid in sal­
aries and how much is paid in bene­
fits is as much a matter of manage­
ment viewpoint as it is of employee
$ 1M

$ 2M

$ 3M

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In setting its compensation pro­
grams, for example, management must
be attuned to the goals of its employ­
ees. Young employees are generally
aggressive and restless—interested in
top dollar and quick advancement.
Older employees may be more inter­
ested in greater pensions and other
benefits which build retirement “nest
Small, medium and large banks are
different not only in size but also in
the manner with which they approach
these considerations. And even banks
of the same size may have totally dif­
ferent compensation and benefit phi­
But how does banking over-all com­
pare with other industries? Let’s take
a look.
With respect to salaries, banking
generally has paid above or close to
the average paid by other industries.

In recent times, it has lost ground so
that it is not always even holding its
own. (See Graph I.)
Graph I

This graph, based on U. S. Depart­
ment of Commerce statistics, shows
the combined growth of average an­
nual pay since 1929 in banking and in
13 industrial classifications as well as
employees on the Federal payroll.
Let me give you some insight into
these comparisons.
In 1929, banking led all 13 classifica­
tions in paying an average of $1,969.
By 1947, a number of other industrial
classifications were passing the bank­
ing average of $2,860. And by 1963,
more industrial classifications had
passed the banking average. And this
is as good a spot as any to go off on
a tangent. I’d give about two to one
odds that most people outside bank­
ing—and perhaps some within the in­
dustry— would guess that there’s a
much wider gap between salaries in
banking and in other industries. In
short, we have an image that’s worse
than that warranted by the facts. Per­
haps you can help build a better image
for your bank.
There were many reasons why pay
in other industries went up faster.
The growth of militant unionism,
highly skilled job needs and more
acute competition are just a few.
But now, let’s take a look at the
other side of the coin and another
study—this one conducted by the U.
S. Chamber of Commerce.
In its study, the Chamber surveyed
19 separate manufacturing and non­
manufacturing classifications to deter­
mine the types of fringe benefits paid
in various industries. It began these
bi-annual studies in 1947. The last
study was conducted in 1963 . . . so
the figures for 1964 and 1965 have not
been released.
First, let’s take a look at what the
banking industry as a whole does
about benefits.
Benefits in the banking industry
have been consistently high. The in­
dustry has, in fact, been the leader.
Banking has paid amounts ranging

posed to cash compensation the “real”
value of the spread is even greater.
While this tax consideration is minor
at lower income levels, it becomes in­
creasingly major at the higher levels.

lo ir H a n k s C o m p a rt»
Vice President and Director o f Communications
Towers, Perrin, Forster & Crosby, //if .
Philadelphia, Pennsylvania

anywhere from 5 to 9 per cent more
of total payroll in benefits than the
average of all industries. And by 1961,
the banks surveyed were paying an
average of 33.5 per cent of total payroll
in benefit costs. There was a drop
of less than 1 percent in 1963. Many
of us will be interested to see whether
this drop continues when the Cham­
ber’s new study is released in 1966.
Now, let’s take a look at exactly
what is meant by the term “benefits”
itself . . . and what the banks in the
Chamber’s study were paying for:
(See Graph II.)
Graph 11

All banks surveyed in 1963 had life
insurance and medical plans. Almost
all had sick leave and pension plans.
Sixty-five per cent of the banks had a
profit-sharing plan, although it’s fair
to say these plans range from thin to
Profit-sharing is the plan most asso­
ciated with banking. Only about 21
per cent of all companies represented
in the study had any type of profitsharing plan. And the publishing and
printing industry was banking’s near­
est rival with 46 per cent of the firms

in this industry setting up profit-shar­
ing plans.
There are other types of benefit
costs, too, for paid holidays, vacations,
bonuses, paid leaves of absence and
tuition refund programs.
In all, 99 per cent of the banks sur­
veyed have paid holidays and 96 per
cent have paid vacations; 58 per cent
paid bonuses — the high percentage
suggesting that many undoubtedly re­
tain the Christmas bonus variety. Pay
for jury duty, military leave or for
personal reasons was provided by an­
other 64 per cent. And 73 per cent of
the banks surveyed had some type of
tuition-refund plan—an important ben­
efit in many banks to assist in the
training of potential executives.
The Whole Story

Now let’s add the two parts of our
story together — pay and benefits —
even though different industries or
companies were included in the re­
spective studies.
Using this measure, we tinci that the
average banking employee is nearly
$200 better off than the average for
industry. And because many benefits
include income tax advantages as op­

Life Insurance


M edical


Sick Leave


P ension s


P ro fit Sharing
Federal Reserve Bank of St. Louis


This, in a nutshell, gives you some
insight into the compensation and
benefits practices of banking. Gener­
ally, we can say that banking has
slipped from the number one provider
of pay in 1929 to just under the aver­
age in 1963. But we can also say that
it retains the number one spot in pro­
viding benefits and in total compensa­
We said before that compensation
and benefit plans should have a total
compensation orientation — they must
be a proper mix of cash dollars and
benefits. And these plans must have
specific objectives if they are to do the
most effective job possible. Yet it’s
surprising to see how many firms have
completely overlooked this total com­
pensation approach.
A bank, or any business for that
matter, is made up of old and young
employees, executives, typists and
clerks. While each may have his or
her own particular goals, effectively
designed benefit plans can be the mo­
tivating force that these people need.
Specific goals aside, most companies
today agree that a total compensation
approach is just pure good business
practice. A good wage and salary
structure helps the employee to pay
for the groceries while the benefits
help in time of necessity or in upgrad­
ing his own abilities. Together they
help the employee keep his mind on
the job. And in an industry like bank­
ing, where people and service are ex­
tremely important, it’s vital to over-all
growth and profitability.
I’d just like to make one other point
—no bank can do a good job of attain­
ing its compensation objectives unless
the entire compensation and benefit
program is effectively communicated.
Outstanding employees can’t be at­
tracted, retained and motivated when
they know little or nothing about
plans and policies. All the careful
planning and good intentions may go
down the drain if employees don’t
understand or know about them. In
fact, to gain the most favorable re­
sults, a bank’s compensation and ben­
efit program should be considered as
having value not only for employees
but also for families, the community
and even the stockholders—and there­
fore, must be effectively and extensive­
ly communicated. And this, I am sure,
is an area in which each of you can
bring your expertise to bear and be
of extra service to your own manage­
N o r t h w e s t e r n Banker. D e c e m b e r, 1965


Hankerm Yon K n oir



Chairman o f the Board
Federal Deposit Insurance Corporation
Washington, I). C.

ERHAPS one key to Mr. Randall’s personality, and
style of operation, lies in the fact that practically
everyone on the FDIC staff who comes into daily
contact with him calls him “Kay”—at his own request.
He feels more comfortable in an informal atmosphere
and he likes to stress the concept that the Corporation’s
activities are a team effort. Mr. Randall is young in ap­
pearance and has the informal approach which most
westerners and Mountain States people seem to possess.
It sets a “tone” for the whole Corporation.
He has said that, in his opinion, the professional staff
of FDIC is its biggest asset. One of his major efforts
since joining the Corporation has been to develop a
strong “second team” in support of the senior staff, many
of whom have grown up with the Corporation from its
earliest days. As a consequence, some relatively young
men have moved up rapidly to positions just under senior
staff, and one or two have been elevated to senior staff.
The workload is crushing and 10- and 12-hour days are
not uncommon, for either Mr. Randall or his top aides.
He likes to get away for a day or two in the mountains,
especially for skiing—but he went on a one-week vaca­
tion recently and found himself so busy seeing bankers
and dropping into corporation field offices that the new
rod and reel he packed and took along wasn’t opened.
He strongly believes in industry self-help, and pushes
the theme constantly in talks, formal and informal, with
the industry. He feels that, whenever and wherever the
industry can be persuaded to solve its own problems,
rather than accept solutions imposed by regulation or


■ Mr. Randall, a native of Ogden, Utah, was elected
F.D.I.C. cahirman April 21, 1965, succeeding Joseph
W. Barr, who had been nominated for the post of
Undersecretary of the Treasury. Mr. Randall had
served as an F.D.I.C. director since March 28, 1964,
when he had become President Johnson's first Re­
publican appointment. In 1963, following a succes­
sion of promotions, he was elected president of the
State Bank of Provo, Utah. The 38-year-old chairman
received both a B.S. and M.S. degree from Brigham
Young University.
t h w e s t e r n Banker, D e c e m b e r , 1965
Digitized Nfor
Federal Reserve Bank of St. Louis

by legislation, the industry is healthier and better served.
This leads him to an interpretation of the supervisor’s
role which is somewhat unusual. He looks upon the
supervisor as a teacher, as a guide and as a disseminator
of the best in banking techniques and policies. He feels
that the examiner has a duty not only to criticize but to
advise, not only to demand correction, but to teach tech­
nique and safeguards. His methods of operation, there­
fore, lead as far as possible to the use of persuasion rather
than the imposition of dogma or inflexible and unanswer­
able orders. This leads to a low-pressure approach which
may sometimes take a bit longer, but which leaves fewer
Perhaps his biggest contribution to the Corporation has
been his willingness to question procedures, methods and
techniques. This willingness to re-evaluate has led the
staff as a whole to a stimulating self-analysis and toward
a less rigid approach. Changes—some quite small, a few
of major importance—and above all, a change of attitude,
are apparent to anyone who served through the change
in administration within the Corporation.
“Yet, since this process is one which takes time, and
since Mr. Randall is relatively new in the chairman’s
office, it is too early to say where this will ultimately
lead. It can be said, however, that the Corporation’s
staff finds this an interesting place to work and likes the
present atmosphere,” according to one of Mr. Randall’s
Bankers’ Responsibilities

Mr. Randall places great emphasis upon the responsi­
bility of the banker to his community and to his nation.
Following, in his own words, are his feelings on several
“Perhaps the single biggest fact of life for bankers to­
day is that the world we live in is more competitive,
more challenging and changes more swiftly than at any
other period in history. The days of the horse and buggy
banker concerned solely with the sleepy routine of his
small town are long since past. Today’s banker, even

(Turn to page 46, please)

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Federal Reserve Bank of St. Louis


Bank Holdups A re Increasing

ANK bandits are receiving about
10 cents an hour for their ef­
forts, based on a 40-hour work
week, according to the Insurance and
Protective Committee of the American
Bankers Association. This figure came
to light earlier this year in a random
sampling of sentences given to 63
bandits involved in 58 holdups. Their
sentences totaled 933 years and one
for a life sentence for having stolen
$190,919, or about $3,030 per bandit.
This figures out at 15 years for each
bandit, whose average age was 29
when sen ten ced , and each man’s
“take” averaged only $202 a year or
$3.88 per week!
This kind of statistic doesn’t seem
to be too great a deterrent to would-be
bank holdup men for the crime rate
against commercial banks has con­
tinued to rise throughout 1965. The
number of bank holdups the first half
of 1965 was 462, up 87 from the same
period in 1964. This is almost a 20
per cent increase. The amount of
money taken in these holdups jumped
25 per cent, up $400,000 from $1,600,000 to $2,000,000, perhaps making an
extra allowance for inflation.


Vulnerable to Holdups

The one salient point brought out
in figures released by the A.B.A., the
Federal Bureau of Investigation, in­
surance companies or any other perti­
nent source, shows that banks are
increasingly susceptible to holdup at­

tempts as opposed to burglary at­
tempts after hours. (See accompany­
ing chart.)
Responsible banking leaders, the
FBI and other law enforcement offi­
cials are searching for the reasons for
the continued increase, while at the
same time trying to persuade more
banks to follow crime prevention
steps that are known to discourage
holdups and burglaries.
Most Are Rone Bandits

The A.B.A. points out that 85 per
cent of bank holdups are perpetrated
by lone bandits. This has been the
case almost exclusively in the mid­
west area served by the N o r t h w e s t e r n
B anker.
In Nebraska, for example,
four major holdups have occurred in
the past six months.
The worst for the entire nation, by
far, was the tragic holdup of the Farm­
ers State Bank in Big Springs, Neb.,
on June 4 when a just-graduated col­
lege youth from Kansas, Duane Pope,
entered the bank at high noon, or­
dered the four employees to lie on the
floor while he helped himself to the
cash, then calmly put a pistol to the
head of each employee and pulled the
trigger. Three died instantly, the
fourth miraculously survived and has
since testified in court from a wheel­
chair that young Pope was the trig­
ger man. Pope’s trial is still in prog­
ress in Lincoln, where court appointed
attorneys are pleading “not guilty by

Crimes of Violence Against Banks*


Increase ’61 over ’63

144 18%%
Total Crimes of Violence. ..
(Burglary and Holdup)
Total Losses—All Types. .. . . . .$4,514,000 $3,805,000 $709,000 18% %
Total Holdup Attempts . . . .
Successful Attempts . . . .
Unsuccessful Attempts ..
Total Losses (N et)........... ___$3,924,000 $3,371,000 $553,000
Total Burglary Attempts. ..
13 19%%
Successful Attempts .......
Unsuccessful Attempts ..
Total Lossesf ...........................$ 590,000 $ 434,000 $156,000
*Source: A.B.A. Protective Bulletin of May, 1965.
f Includes damage to premises and equipment.
N o r t h w e s t e r n Banke r, D e c e m b e r , J965
Federal Reserve Bank of St. Louis

reason of temporary insanity” in or­
der to avoid the death penalty being
sought by the U. S. District Attorney.
Omaha Holdups

Three other bank holdups centered
around Omaha within a 45-day period.
On September 29 a bandit took more
than $8,000 from the Farmers State
Bank in Elkhorn just west of the city,
at a time when the staff was prepar­
ing to move into the bank’s new build­
ing. On November 1 an armed rob­
ber entered the U. S. National Bank
of Omaha, located at one of Omaha’s
main downtown intersections and at
gunpoint took $3,600 from a fright­
ened woman teller. Scarcely two
weeks later a 52-year-old transient
from Chicago held up The First Na­
tional Bank of Omaha directly across
the street. He also wielded a gun
while taking an estimated $18,000
from a woman teller. Five hours la­
ter he was apprehended and had
$5,000 of the money with him. It was
not determined what happened to the
other $13,000, although the bonding
company had repaid the bank $18,732
within a couple of days. The robbery
occurred on Monday and the man was
sentenced to prison on Friday of the
same week.
Last month a Mason City, Iowa,
man was sentenced to 10 years in the
Federal penitentiary for armed rob­
bery of the American State Bank of
Mason City last April 30, when he
made away with $1,973.
Similar cases repeat the same pat­
tern time after time—a lone man who
threatens that he has a gun, explo­
sive, or other such device on his per­
son, enters a bank and usually ap­
proaches a woman teller. In about
half the cases he extends a note of
some kind demanding money. The
“loner” was responsible for 661 of the
attempted bank holdups in 1964 and
was successful in 503 cases. A.B.A.
records show, coincidentally, that 173
holdups were frustrated by alert bank
personnel and protective devices, re­
sulting in the immediate arrest in
most of the cases.

What will really deter, frustrate, or
solve a bank holdup? There is no
guaranteed method, but there are pro­
cedures developed from experience by
banking and law enforcement officials
that have proven to cut down the
The best way to eliminate bank
holdup losses, of course, is to prevent
bank holdups. Bankers can obtain
professional advice in this area from
several informed sources: the Ameri­
can Bankers Association, NABAC,
Federal Bureau of Investigation, the
local or state Bureau of Criminal In­
vestigation. and the manufacturers of
bank protective equipment.
Each of these groups have stand­
ard, practical procedures that can be
followed by banks of any size for max­
imum prevention of holdups and bur­
glaries. J. Edgar Hoover, director of
the FBI, has written two special arti­
cles on this very subject in recent
years for the N o r t h w e s t e r n B a n k e r .
The last of these, “Are You Fore­
armed Against Attack?” appeared in
the April, 1964, issue and included a
list of preventive suggestions by Mr.
Hoover titled, “Bank Protection Quiz.”
The Insurance and Protective Com­
mittee of the A.B.A. has regular file
materia] available to all banks to as­
sist in setting up proper safeguards
against holdups and burglaries. The
A.B.A. head office is located at 90 Park
Avenue, New York, N. Y. 10016.
NABAC also has gone extensively
into this problem. It has copyrighted
a booklet “Your Bank and Armed Rob­
bery” that serves as a manual for
banks of any size in reviewing protec­
tive devices and procedures, as well
as instructive chapters on what to do
during and after a holdup if one
should occur. NABAC is located at
205 W. Touhy Avenue, P. O. Box 500,
Park Ridge, 111.
New Equipment Available

Engineering assistance to coordi­
nate a preventive program with tested
and proven crime prevention equip­
ment is available from the leading
manufacturers of safe, vault and pro­
tective equipment. One device mar­
keted in recent years that has proven
spectacularly successful is the camera
monitor. Placed in strategic locations,
these cameras provide surveillance of
vulnerable areas and are generally ac­
tivated on a silent alarm by an em­
ployee. Completely unnoticed, the
cameras take motion pictures with ex­
ceptional clarity of the holdup in prog­
ress. Still pictures made from movie
film in several holdups have aided in
the early capture of the bandits.
The list of protective equipment is
lengthy, with each piece of equipment
Federal Reserve Bank of St. Louis

engineered to meet a specific need for
small banks as well as large. This
equipment has frustrated enough bur­
glars to the point where after-hours
break-ins (133 in 1964) total only
about 15 per cent of total crimes of
violence against banks.
In other words, any bank is much
more vulnerable to attack in daylight
when the doors are open than at night­
time when mechanical and electronic
devices maintain a near impregnabil­
ity. The principal fault in the latter
case is the banks who have not kept
their protective equipment updated.
In one bank, for instance, great care
was taken to have an adequate vault
door and alarm system installed, yet
a window with no bars was left in an
outside wall of the vault so fresh air
could be brought in when needed!
Uniformed Guards Help

The daylight holdup is best pre­
vented, according to the William J.
Burns International Detective Agen­
cy, Inc., by the presence of uniformed
guards. This could well be true, but
the two holdups occurring in down­
town Omaha in November were car­
ried out with uniformed guards both
inside the bank and at street level.
Professionals probably do steer clear
of such places since they present one
more obstacle to overcome, but the

W h en was the last time you said

majority of holdups are perpetrated
by “loners” who normally don’t con­
sider all these factors.
This uncertainty is the principal
reason why bank and law enforce­
ment leaders advise bankers to in­
struct employees to turn the money
over in case of holdup in order to
avoid bodily harm. No one can guard
against the unforeseen, unprovoked
attack that took place at Big Springs.
However, these officials state, to help
track down the bandit later, employ­
ees need to be trained to be observant
during a holdup, to trip a silent alarm
if possible, and to include “bait
money” with any cash given the hold­
up man. “Bait money” is marked
money kept in the regular cash
drawer for such an emergency. In
many banks, lifting the “bait money”
also trips a silent alarm that will alert
guards inside the bank as well as local
police, and this can also activate sur­
veillance cameras if installed.
With the continuing increase in
these crimes of violence against banks,
it would be well for bank managing
officers to review personally what
steps are in effect in their own banks
to prevent such holdups and burgaries, or to protect lives, cash and
property if such attempts are made.—


“ There must be
an easier w ay!”
There is

, with




N o r t h w e s t e r n Banker, D e c e m b e r , 1965


O f# o f f #*fl ff

f f o##*

"N ew W o rld 9 3 o f Hunk ini/
Commerce Trust Company opened a “new world"
of bank service merchandising at the same time
it opened its new Commerce Tower. Assistant Vice
President Braude explains the reasoning behind the
project and lists the steps taken to establish the
institution's Family Banking Center.

HE Commerce Trust’s Family
Banking Center, which opened
for business March 1, is the re­
sult of our conviction that our retail
customers desire one place for trans­
acting all personal banking business
and one officer to counsel them on all
Commerce Trust services. We feel,
for example, that someone wanting to
apply for an auto loan will appreciate
doing so with the same officer who
opened his checking and savings ac­
In addition, cross-selling opportuni­
ties among our customers represent
our greatest potential markets for re­
tail banking business. Once we have
sold a person on doing business with
Commerce Trust, our next goal should
be to make him a “total” customer.
By separating our commercial and
retail service areas, we are able to
provide faster, more efficient services
for both types of customers. This,
after all, is a general marketing trend
evident in separate gourmet shops in
super markets and separate college
shops in department stores.
While we have attempted to create
the ultimate in attractive surround­
ings, inasmuch as we believe that peo­
ple want to bank in a pleasant, alive
area, separation of commercial and re­
tail services and the provision of beau­
tiful surroundings are not enough.
To make it desirable for someone to
switch to Commerce Trust, new mar­
keting p a ck a g e s must be offered.
These packages must save our cus­
tomers money, time and effort.
new checking plan eliminating all
service charges if a balance of $200 is
maintained and one-stop teller service
coupled with statement savings are
but the first of these marketing ideas.


r t h w e s t e r n Banke r, D e c e m b e r , 1965
Digitized for
Federal Reserve Bank of St. Louis

tractive women tellers. These indi­
viduals were drawn from our standing
teller force on the basis of sales-mindedness, competence and appearance.
Services offered by the Family
Banking Center include the following:
• Opening of savings and checking
• Paying and receiving teller serv­
• Installment loans (and collection
of installment loan payments).
• Real estate loans.
• Sales of traveler’s checks, person­
al money orders and savings certifi­

W ritten

Especially fo r



B y M IC H A E L
A ss is t a n t V ic e
C om erce T ru sl
C om pan y
K ansas City,
M issouri

Physical Qualities

Our Family Banking Center oc­
cupies approximately one-half of the
main floor of Commerce Tower. It is
connected to the commercial lobby by
a floating stairway.
Interior design, under the direction
of Eleanor Le Maire Associates, Inc.,
New York, features a delightful har­
mony of colors, furniture, fixtures and
lighting to add comfort and distinction
to the Center.
Center Staff

The Center opened with six men oc­
cupying the desks in the Center’s pub­
lic area. All are young, aggressive,
sales-minded bankers who realize that
their future prospects hinge on the
amount of retail business they gener­
ate. They have all been thoroughly
trained in the various service depart­
ments of our bank and are able to
intelligently counsel customers on our
many services.
The Center also opened with 10 at­

Promotion of Center

A total of 3,000 persons work for
tenant firms in the building and more
than that number are employed by
firms in buildings within a block of
Commerce Tower. We feel that these
persons constitute a prime market and
our goal is for every employee of a
tenant or neighbor firm to be a Com­
merce Trust customer.
Before the Center opened, staff mem­
bers called on each tenant and neigh­
bor firm with the following purposes
in mind:
1. To obtain a list of all employees
so that a letter of welcome from Com­
merce Trust’s president and a folder
describing all bank services could be
sent to each person on the day a ten­
ant moved into its new quarters.
2. To a rra n g e group approaches,
such as employee meetings either at
their office or in Commerce Tower Au­
ditorium, over coffee, where we could
explain services we offer and answer
3. To simply ask how the Family
Banking Center could best serve their
4. Once situated in the new Center,
intensive solicitation of tenants and
neighbors continued. Every spare mo­
ment of staff members’ time is devoted
to making calls, conducting employee
meetings and selling additional serv­
ice to tenants and neighbors who open
5. On a continuous basis, contact is
maintained with officers of tenant and
neighbor firms and particularly with
personal officers so that we can get
more business from old employees and
the accounts of new employees who
join their firms.
Advertising and Promotion

The bank’s advertising campaign in
1965 has stressed retail banking and
has had as its theme, “ A Wonderful
World of Banking Is Yours at ComNEW WORLD . . .

(Turn to page 46, please)


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customers the very best in travelers check service and convenience. And they have the full backing
of First National City, the leader in world-wide banking. If you’re not offering all the benefits of
First National City to your customers now, write for full information today to: Travelers
Check Dept., First National City Bank, 399 Park Avenue, New York, New York 10022.
Federal Reserve Bank of St. Louis





M em ber Federal Deposit Insurance Corporation

N o r t h w e s t e r n Banker, D e c e m b e r , 1965


At 1st of Chicago Conference

HHili—G ood. tint S low er G row th

from across the country
were presented with a well or­
ganized and capably presented review
of the current business situation, plus
a look at several important areas of
bank management, by the First Na­
tional Bank of Chicago at their Con­
ference for Bank Correspondents held
last month.
This 19th Annual Conference was
attended by more than 1,400 hankers,
and the hosts very ably mixed busi­
ness with pleasure during the twoday affair.
Robert D. Murphy, chairman of the
board of Corning Glass International,
closely held the attention of those in
attendance at the annual dinner as he
reminisced on his days as a diplomat.
A veteran of 39 years in the United
States Foreign Service, Mr. Murphy
spent his early career in Western
Europe. During the 30’s he was as­
signed to the Paris Embassy and sub­
sequent transfers have taken him
throughout most of the world.
Mr. Murphy discussed his early re­
actions and contacts with Adolph Hit­
ler, traced World War II as it directly
touched him and closed with some ob­
servations on the national scene to­
day. All this was illustrated with his
own experiences, making it a most ef­
fective presentation of United States
foreign policy over the past 40 years.

Associate Editor

In his discussion of the current
world situation, Mr. Murphy urged
strong understanding and support of
the American foreign policy by the
American people. “ It is the disaf­
fected and unconvinced right here at
home that may provide our Achilles
The traditional look at 1966 was
provided by the vice presidents in
charge of the 11 lending divisions of
the First National Bank. In brief,
here is what they anticipate for the
coming year:
Spring farrowing is expected to be
up slightly next spring, but hog prices
are anticipated to hold strong most
of next year with a possible weaken­
ing late in the fall. Cattle feeders can
look to narrowed profits during 1966
as compared with 1965 because record
crops and increasing cattle numbers
will exert a downward pressure on
the fat cattle market. The auto in­
dustry is looking toward another rec­
ord year. Steel and aluminum indus­
tries are facing narrowing profits and
will attempt to raise prices. Install­
ment sales continue to expand and
consumer finance companies can ex­
pect another good year. Weather
problems are expected to lessen the
supply of some canned fruits and
higher prices can be expected on se­
lected items. The liquor industry con­

tinues to grow with rising incomes.
Housing will hold next year at cur­
rent, rather low levels, but mortgage
debt will continue to rise. Truck, rail
and air transportation industries all
look bright, with commercial airlines
showing the way. Freight shipment
and passenger travel continues to in­
crease and all three industries will
benefit. With the elimination of price
wars and other internal problems, the
petroleum industry is heading toward
a record year with outlooks even bet­
ter for 1966. Construction expendi­
tures will increase about 3 per cent
over last year and will continue into
the coming year with public construc­
tion leading the way. The areospace
industry, really just getting started,
faces low profits because of high re­
search costs. Merger and consolida­
tion will become important in months
and years ahead. Expenditures of
state and local governments will con­
tinue to rise by about 7 per cent an­
nually to meet the demands of more
people desiring more services.
Discussing the Trend in Banking,
Charles F. Newhall, vice president in
charge of Division F serving Banks
and Bankers, said, “Earnings gains
of all commercial banks for 1965 will
range widely, with average earnings
showing an increase of about 8 per
cent for the year compared to the
average gain of 10 per cent in 1964.”
He went on to say that earnings for
commercial banks for the first few
months of 1966 should increase at
about the same average rate as in
Mr. Newhall went on to warn that
the Federal Reserve might have no
alternative but to apply more credit
restraint in 1966 to avoid a further
weakening in our balance of payments
and an imbalance in the economy. It
would be wise for banks to anticipate
such action and prepare to alleviate
the resulting bind, he advised.
Seminar sessions were run on three
topics: Outlooks, Management and
Investments. Through the three ses­
sions of the Conference, bankers had
the opportunity to attend all three.

IT T H E F IR S T OF C H IC A G O ’ S Conference for Bank Correspondents, V ic von M eding,
-p (third from l e f t ) , reviews some of the inform ation gathered at the seminars with
'Tevin G. Bowser, a.v.p., First N a tl., Chicago; Ernest A . Kenny, Jr., v.p., Burlington
Ik. & Tr., Burlington, Io w a ; and C. R. Bailey, exec. v.p. and cashier, Jasper Co. Sav.,
Jewton, Iow a. This was M r. von M edin g’ s last Conference as he retired Novem ber
;0 after many years of service in First N a tio n al’s northwest division of the corre­
spondent bank department. This division, which M r. von M eding headed fo r several
rears, embraces the states served by the N O R T H W E S T E R N B A N K E R .
we stern Banker, D e c e m b e r, 1965
Digitized forN orth
Federal Reserve Bank of St. Louis

Officers of the First National Bank
presided and, for the most part, spoke
at the sessions. Morris A. Schapiro,
chairman of the board of M. A. Scha­
piro and Company, New York; C.
Richard Youngdahl, president of Au­
brey G. Lanston & Company, New
York; Frank L. Griffin, Jr., vice presi­
dent and actuary, the Wyatt Compa­
ny, Chicago; and Paul S. Nadler, asso­
ciate professor of finance, New York
University, were the guest speakers.
William J. Korsvik, vice president
of the First National Bank, summed


Can you translate this line?
Helga Müller can.
O ne indication of the scope of our activities in inter­

a correspondent, may call on. Through our w o rld ­

national business is the fact that we have more trans­

wide network of branches, affiliates, representatives

lators than there are letters in the alphabet. Thirty-four,

and correspondents, Chase can help you help your

to be exact. These translators in our International D e­

customers with any international service, from credit

partment, working in eleven languages, handle more

information on foreign firms to the actual handling of

than 45,000 foreign items and letters a month.

specific overseas transactions.

Chase Manhattan's extensive involvem ent in over­

The line above? It's German for “ You have a friend

seas trade and financing provides a specialized back­

at Chase M anhattan" — a fact w e'll be glad to dem on­

ground of experience and knowledge w hich you, as

strate to your bank in any appropriate language.
Federal Reserve Bank of St. Louis



National A ssociation




1 Chase M anhattan Plaza, New York, N. Y. 10015

M e m b e r Federal D e p o sit In sura n ce C o rp o ratio n
N o r t h w e s t e r n Banker, D e c e m b e r , 1965

up the entire outlook question with
the following three broad points:
1. The immediate outlook for busi­
ness is excellent . . . and it seems
highly probable that it will continue
good well into 1966;
2. The rising trend of capital spend­
ing, the most dynamic recent force in
our economy, is likely to level off to
a more modest total and rate of ad­
vance in the not too distant future,
3. Economic growth in the years
ahead—say to 1970—is likely to aver­
age nearer our historical trend of 3
per cent in contrast to the gains of
5 per cent we have enjoyed recently.

permitted in 97 per cent of conven­
tional plans, compared with 75 per
cent in 1953.

Mercantile Trust Promotions
Two correspondent bank men from
Mercantile Trust Company, St. Louis,
and a member of that bank’s Division
F were named officers. Dale F. Fagot
and Urban F. Myers III, both of the
banks and bankers department, and
F. Dean DeOgny were all named as­
sistant cashiers.

Corporate Pension Study
Corporate pension plans have be­
come more liberal in recent years in
their provisions governing vesting
rights, early retirement disability ben­
efits and normal retirement pay, ac­
cording to the “ 1965 Study of Indus­
trial Retirement Plans” conducted by
Bankers Trust Company, New York.
The 263-page book, prepared by the
bank’s Pension Trust Division, con­
tains a detailed study of 241 pension
plans adopted or amended between
1960 and 1965.
Vesting, for example, which allows
an employee to quit his job without
losing all his pension rights, now is

These practical investment sugges­
tions (based on actual cases) are
among the tools regularly supplied
Stud ley, Shu pert Trust Investment
Council Members. An invaluable aid
for developing trust account policies.
Community banks from coast to coast
regard Council Membership “ a
must.” Write for details.

In v e s tm e n t

860 Suburban Station Bldg.

C o u n cil
Phila., Pa. 19103

N o r t h w e s t e r n Banker, D e c e m b e r,
Federal Reserve Bank of St. Louis


Computers for FDIC
The Federal Deposit Insurance Cor­
poration is embarking on a computer
program designed to provide addition­
al tools with which to carry out its
Through computerization the Cor­
poration plans to develop information
which can be used in the analysis of
market penetration and concentration,
for cost studies and comparative stud­
ies of financial institutions by type,
size, or area, and in many other areas
pertinent to bank supervision.

Open New York Office
D. F. F A G O T


Mr. Fagot came to Mercantile from
a Lincoln, Neb., bank where he had
been assigned to the correspondent
bank department. For 10 years pre­
vious to this he was self-employed in
farming and cattle feeding. A former
student of the University of Nebras­
ka, Mr. Fagot returned this summer
to attend the School of Basic Banking
in that University. For some time
he has been the bank’s agricultural
representative assigned to banks and
Mr. Myers was associated with a
Chicago bank for eight years, two
years as management trainee and six
years in the international department.
Since coming to Mercantile he has
worked in banks and bankers depart­
Mr. DeOgny came to the bank as a
trainee in national accounts, and was
transferred this year to Division F
as a representative.

Bank Merger Pamphlet
Chairman Wright Patman of the
House Banking and Currency Com­
mittee has released a “Question and
Answer” document detailing the high­
lights of the issue of bank mergers.
It is entitled, “The Truth About the
Bank Merger Bill.” A total of 66
questions and answers are presented.
The hearings against pending bank
merger legislation are expected to
continue early in the second session
of the 89th Congress.

Continental-!llinois Elects


J osep h A la im o and William J.
Young, Jr., were promoted to second
vice presidents from investment offi­
Lynwood J. Larson, James D. Mc­
Williams, and Franklin H. Pierson
were named investment officers.

Continental-lllinois National Bank
and Trust C om pany, Chicago, an­
nounced its directors have promoted
two officers and elected three new
ones in its trust investment division.

Bank of America’s bank investment
securities division has opened a cor­
respondent office at 45 Wall Street in
New York City.
In announcing the opening, Alan K.
Browne, division vice president, said
C. Edward Pierson is heading the new
Mr. Pierson began his career in the
bank’s international banking depart­
ment in San Francisco in 1946.

Promote Former Iowan
Chauncey E. Schmidt, a native of
Oxford, Iowa, has
been p rom oted
from a ssista n t
vice president to
vice president of
the international
b a n k in g depart­
ment of the First
National Bank of
Chicago. He will
be transferred to
b a n k ’ s L on d on
C . E . S C H M ID T


Allied Mutual Agency Head
Arthur E. (Ed) Carty has been
named superintendent of agents by
Allied Insurance Group to fill the
vacancy occasioned by the death, last
month, of James Dunlop. Mr. Carty
has been field supervisor in Nebraska.
Dale Foltz, executive vice president
and director of Standard Reliance In­
surance Company, Lincoln, before it
was merged with Allied Mutual last
June, has been appointed manager of
Allied Insurance Group’s branch in
Gaylord Johnson, formerly a field
supervisor for Allied Mutual in Ne­
braska, has been promoted to Ne­
braska branch agency manager.

Ted Bosfield just received his Christmas Club check.
Now he’s putting some of it in his savings account.

Federal Reserve Bank of St. Louis

(^hristmas (^fub
-merriest wav to save /





(Continued from page 36)
in the smallest of farming communities, must be able
to relate his activities and his community’s activities to
the whole world.
“ The banker today more than ever must be the eco­
nomic leader of his community. A community stands or
falls on its economic health, and the banker who is posi­
tive in his leadership, whose bank does all it can to dis­
charge the financial needs of the community, can be the
greatest force possible for prosperity. Unfortunately the
banker who is satisfied with a highly liquid situation and
refuses to make necessary credit advances, can prove
to be a tremendous drag on any community.
“ Today’s fast-paced world requires every banker to
utilize as far as possible the new techniques available
both for service and for protection. At FDIC we are
directly concerned with the safety of a bank. We feel
that the day has long since passed when a bank can do
without sound programs of internal controls, preferably
buttressed by an internal audit program. Not only will
such programs help prevent loss for a bank, but they
give the banker an excellent cost-accounting tool, and
cost-accounting in this competitive age is becoming in
many instances the difference between full and profitable

“ N EW W O R L D ”

. . .

(Continued from page 40)
meree Trust.” Television, newspaper
and outdoor advertising have ben co­
ordinated to stress the beauty and
freshness of our Family Banking Cen­
ter and the money- and time-saving


• Bank-by-M ail
• Checkbooks
• Transit Mail


• Correspondence
• Drive-in Banking
• M ICB Systems
• Note Notices
• Payrolls
• Savings Books


• Statements
C all yo ur exp erien ced

s p e c ia lis t s

Tensio n envelope
s p e c ia lis t


operation, and a high-cost operation which can eat up
all earnings.
“We feel strongly that internal control and internal
audit should be buttressed by programs of direct verifi­
cation. . . .
“The Corporation feels it must always seek to upgrade
its own performance. Our justification for existence lies
in service—to the public, to the industry, and to the
“We support fully the concept of the dual banking sys­
tem, and it is only by strong state banking departments,
backed up by effective Federal organizations in a sup­
portive role, that such a system can be effectively con­
“ I have found my two years with the Corporation to
be broadening, stimulating, and provocative. I know of
few more challenging and exciting positions than that
I came from, serving as an officer of a small bank inti­
mately connected with the economic life of the commu­
nity it served. My years on an officer’s platform, han­
dling every type of problem and service the small town
banker may be called upon were rewarding, and I hope
someday to return to that life. But the contacts this new
position have given me, with bankers all over the na­
tion, and with banking areas of thought, big city and
small town alike, have been rewarding and continue to
be rewarding.”

features of our new services.
A letter from the bank’s president
has arrived for each employee of a
tenant firm on the day his firm moved
into Commerce Tower. The letter wel­
comed him and invited him to bank at
the Family Banking Center.
A new coordinated series of folders
describing all Commerce Trust retail
banking services was prepared to be
included with the president’s letters.
They have also been given to gain new
customers as part of our cross-selling
effort and they were distributed at the
group meetings held for tenant and
neighbor firms.
Personalized photographic cards for
all Family Banking Center tellers and
new accounts personnel were made
up, featuring a candid photo of the
teller or officer in the upper left hand
corner. After the first time one of
our people waits on a new customer,
he or she sends one of these cards with
a “welcome” message to that customer.
This helps us achieve our goal of
making every customer feel that he
has not only an officer with a personal
interest in him, but also a teller with
that same interest. Our officers and
tellers also use these cards to con­
gratulate cu sto m e rs on important
events in their lives and to sell them
on additional services.
Other Promotional Items

Des M o in e s F a cto ry and Sales O ffice :

T E N S IO N E N V E L O P E C O R P .
2 9 1 2 G ran d Ave.„ P . O . B ox 1 3 4 1
Des M o in e s. Io w a 5 0 3 0 5
Phone 2 4 4 - 2 1 3 1
S a le s O ffices: C e d a r R a p id s + Davenpor"
F a c t o r ie s : D es M o ines, K a n s a s C it y , S t . Louis,.
M e m p h is, F o rt W o rth , M in n e a p o lis,
So u th H a c k e n sa ck , N . j .
Federal Reserve Bank of St. Louis
N orthw estern


Decem ber,


Preview emblems were also worn
by all Commerce Trust officers and
staff members prior to the opening of
the Family Banking Center. These
were attractive globe-shaped pins an­
nouncing that “ A Wonderful New

World of Banking Is Coming.” Signs
of the same design were posted in the
bank’s quarters.
Sales orientation meetings were held
to encourage all bank employees to
do a complete selling job for the Fam­
ily Banking Center.
Informal sales contests have been
conducted to encourage public contact
with people in their cross-selling ef­
forts in the Center.
Finally, records of accounts opened
by all Family Banking Center staff
members, and of loans introduced by
them, have been maintained so that
proper recognition may be given in
order to foster a sales conscious atti­
tude on the part of every staff mem­

William F. Kelly
William F. Kelly, president of First
Pennsylvania Banking and Trust Com­
pany, Philadelphia, and past president
of the American
Bankers Associa­
tion, died recent­
ly. He was 58.
Mr. Kelly had
been ill for the
past three
He serv ed as
vice president of
ABA in 1962-63,
and president in
W . F. K E L L Y
1963-64. He or­
ganized the association’s consumer
credit committee in 1939. He was rec­
ognized in the industry as one of the
first exponents of retail banking.
Federal Reserve Bank of St. Louis

The F irst National B ank o f Chicago

N o r t h w e s t e r n Banker, D e c e m b e r , 1 9 6 §


\filin’ R eyio n u i A d v is o r y G roup
ard J. Lewis, president, American Na­
tional Bank & Trust Company, Eau
Claire, Wis., and John M. Rose, presi­
dent, Kellogg-Citizens National Bank
of Green Bay, Wis.

Comptroller of the Currency
James J. Saxon has named region­
al advisory committees to assist in a
continuing review of bank regula­
Committees of 12 bankers in each
of the 14 national bank regions will
complement the work of a national
advisory committee of 27 bankers an­
nounced in October.
Chairman, vice chairman and mem­
bers of the regional advisory commit­
tee for the N o r t h w e s t e r n B a n k e r area
are listed below:

Region 10

Region 9

Chairman: Joseph R. Hartz, presi­
dent, First National Bank of Stevens
Point, Wis.
Vice chairman: A. M. Eriksmoen,
president, Dakota National Bank of
Fargo, N. D.
John A. Moorhead, president, North­
western National Bank of Minneapo­
lis; Ora G. Jones, Jr., president, Goodhue County National Bank of Red
Wing, Minn.; C. Glenn Rye, president,
Northern City National Bank of Du­
luth (First Bank Stock Corp.), Minn.;
Mrs. E. A. Nachtwey, president, First
National Bank, Dickinson, N. D.; Fred
R. Orth, president, First National
Bank in Grand Forks, N. D.
E. Dahl, chairman, American
National Bank & Trust, Rapid City;
C. C. Lind, president, First National
Bank of Aberdeen (Northwest Ban­
corp.), Aberdeen, S. D.; Thomas P.
Hudson, president, First American
National Bank of Wausau, Wis.; Rich-

Chairman: John B. Mitchell, presi­
dent, First National Bank in St. Louis.
Vice chairman: Charles Young, pres­
ident, City National Bank & Trust
Company of Kansas City, Mo.
Calvin W. Aurand, president, IowaDes M oin es N a tion a l Bank, Des
Moines; R. L. Kilgore, president, Na­
tional Bank of Waterloo, Iowa; Rob­
ert Bunten, chairman and president,
Merchants National Bank of Topeka,
Kan.; Clarence Coleman, president,
Union National Bank of Wichita, Kan.;
B. L. Lohmuller, president, First Na­
tional Bank of Centralia, Kan.
Nation Meyer, president, First Na­
tional Bank, Hutchinson, Kan.; L. R.
Reynolds, Jr., president, First National
Bank of Joplin, Mo.; James B. Cooper,
president, Plainview (Neb.) National
Bank; Morris F. Miller, president,
Omaha National Bank, and Burnham
Yates, president, First National Bank
& Trust Company, Lincoln, Neb.
Region 12

Chairman: Melvin J. Roberts, presi­
dent, Colorado National Bank of Den­
Vice chairman: Frank O. Papen,
president, First National Bank of
Donna Ana County, Las Cruces, N. M.
H. A. McEvoy, president, Continen-

tal National Bank, Phoenix; Robert
D. Williams, president, First National
Bank of Arizona, Phoenix; J. D. Ack­
erman, chairman and president, Ex­
change National Bank of Colorado
Springs, Colo.; Robin B. Bailey, presi­
dent, First National Bank of Pueblo,
Colo.; R. K. Schumann, president,
West Greeley (Colo.) National Bank.
W. M. Gallaway, president, Farm­
ington (N. M.) National Bank; Roy
W. Simmons, president, Zion First
National Bank of Salt Lake City; D.
M. Crouse, president, American Na­
tional Bank of Riverton, Wyo.; Jackson F. King, president, First National
Bank of Casper, Wyo., and A. H.
Trautwein, president, Cheyenne Wyo.)
National Bank.
Region 13

Chairman: William E. Irvin, presi­
dent, Idaho First National Bank,
Vice chairman: Baker Ferguson,
president, Baker-Boyer National Bank
of Walla Walla, Wash.
D. H. Cuddy, president, First Na­
tional Bank of Anchorage, Alaska; L.
A. Frazier, president, Fidelity Nation­
al Bank of Twin Falls, Idaho; Forrest
Hedger, president, Great Falls
(Mont.) N a tion a l Bank; John E.
Tenge, president, Midland National
Bank of Billings, Mont.; Theodore Ja­
cobs, chairman, First National Bank
of Missoula, Mont.
E. J. Kolar, president, U. S. Nation­
al Bank of Oregon, Portland; C. Henri
Labbe, president, Great Western Na­
tional Bank, Portland, Ore.; Maxwell
Carlson, president, National Bank of
Commerce of Seattle; James E. Phil­
lips, president, First National Bank
in Port Angeles, Wash., and Dewitt
Wallace, president, Old National Bank
of Washington, Spokane.

.'Joes to National
boulevard Bank

M I D - C O N T IN E N T

T h in k
J S f U ü r í / z E * —— _
_ J jg B S S F B E T P O T S É * --

a n d tr u s t c o m p a n y

Digitized Nfor
t h w e s t e r n Banke r, December, 1965
Federal Reserve Bank of St. Louis

T U L S A , O K LA H O M A

Robert E. Kishler has joined Naional Boulevard Bank of Chicago as
m assistant cashier in the commercial
d e p a rtm en t, ac­
cording to an an­
n o u n ce m e n t by
Irving Seam an,
Jr., president.
A graduate of
L o y o la U n iv e r ­
sity, Mr. Kishler
has over 10 years
of experience in
various phases of
the banking field.
R . E . K IS H L E R





tended John Carroll University and
the American Television Institute and
presently w o r k in g toward his
cr-arlnntp rprtifiratp in A.T.B. studies.




“E una grande banca con una piccola
banca dentro. In any language, the big bank with the little bank
inside becomes a land of enchantment at Christmastime. Our annual exhibit
Traditions oi Christmas depicts Christmas customs around the world,
and will be on display for the pleasure of grown-ups and children alike, from
December 6 through 31. Come visit.
Federal Reserve Bank of St. Louis

j j Fl A 1 V K
Continental Illinois National Bank and Trust Company of Chicago
231 South LaSalle Street, Chicago, Illinois 60690 . Member Federal Deposit Insurance Corporation

©C.I.N.B. 1965

N o r t h w e s t e r n Banker, D e c e m b e r , J965



SI.Louis II oidi o ff

has been reached on
a plan for the consolidation of the
interests of St. Louis Union Trust
Company, First National Bank in St.
Louis, and General Bancshares Cor­
poration into a newly named bank
holding company—First Union Bancorporation—it was announced by offi­
cers of the three institutions.
The announcement was made by
David R. Calhoun, president of St.
Louis Union Trust Company; James
P. Hickok, chairman of First National
Bank, and Preston Estep, chairman of
General Bancshares.
It is anticipated that David R. Cal­
houn would become chairman of the
board and chief executive officer;
James P. Hickok would become presi­
dent, and Preston Estep would become
chairman of the finance committee of
F ir s t U nion Bancorporation. Vice
Presidents of First Union Bancorpora­
tion would be John B. Mitchell, presi­
dent of First National Bank; Jack G.
Butler, president of Bank of St. Louis
(a GBC Bank), and Eugene F. Wil­
liams, Jr., executive vice president of
St. Louis Union Trust Company.
First National Bank has total re­
sources in excess of $806,000,000 and

traces its origins back to 1856. Gen­
eral Bancshares Corporation, youngest
of the three firms, had its beginning in
1912. It has 10 banks in Missouri, Illi­
nois and Tennessee and total resources
of over $378,000,000.
The headquarters of First Union
Bancorporation would be in the offices
of the St. Louis Trust Company at 510
Locust Street.

Six LaSalle Changes
Six official changes have been made
by the LaSalle National Bank, Chi­
In addition to the appointment of
five new officers, Paul Davies, Jr., an
assistant cashier in the international
department, was promoted to assist­
ant vice president. He will continue
in the administration of international
banking activities. The new officers,
all named assistant cashiers, are Pat­
rick G. Anderson, Jr., manager of
the credit department; Edwin K. Balster, who heads the auto dealer sec­
tion of the bank’s installment credit
department; James Hamilton of the
regional loaning group and two mem­
bers of the bank’s data processing op­

eration, Bruno Marczyk and Eugene
Mroz. The latter two will serve as
assistant managers, systems and plan­
ning, and manager, data processing,

Massey-Ferguson, Inc. Expands
Massey-Ferguson Inc., as a further
expansion of its activities in the corn
belt, will undertake manufacture in
Wisconsin of a new suburban or
garden-type tractor.
In making the announcement in Des
Moines, J. G. Staiger, president, said
production of the tractor will begin

G A R D E N -T Y P E



M assey-

Ferguson, Inc.

Chicago \s

next month in the Algoma, Wisconsin
factory of Badger Northland Inc., a
subsidiary of MF Inc.

new and

“This will be the first time,” he said,
“that we have produced a tractor in
North America outside of our Detroit,
Michigan tractor plant.” The garden
tractor, a 10-horsepower unit known
as the MF 10, will be sold by MF in
both the United States and Canada.

Closest T o A ll
Conuenfion C e n t e r s

Elect 10th Fed Directors

Prestige accommodations on Michigan Avenue — facing
Lake Michigan and Grant Park — so close to business,
convention centers, shopping and sightseeing. Ideal for
business men, vacationers or families.
» Heated swimming pool, poolside food
and beverages * Free courtesy car
throughout downtown
• Free parking on premises
• Free wake up coffee
• Free Radio, TV * Free ice cubes
Home of famous Cafe French Market and Le Cave
Lounge — entertainment nightly. Sensible rates at all
times. Plan your next trip, or sales meeting now.

PHONE WA 2-2900— TWX: 312-431-1012
For reservations — write or phone directly,
or thru your travel agent.
Digitized for
t h w e s t e r n Banker, D e c e m b e r , 1965
Federal Reserve Bank of St. Louis

Write Dept.

Stanley Learned, president and chief
executive officer of the Phillips Pe­
troleum Company, Bartlesville, Okla.,
and Burton L. Lohmuller, president
of The First National Bank of Centralia, Kan., have been elected to the
board of directors of the Federal Re­
serve Bank of Kansas City for threeyears terms beginning January 1.
Mr. Learned succeeds K. S. Adams,
chairman of the board of Phillips
Petroleum, who has been a Federal
Reserve board director since March,
1954, and did not wish to be a candi­
date for re-election. Mr. Lohmuller,
a director since January, 1960, begins
his third term. Election of both di­
rectors was by 10th District Federal
Reserve member banks having capital
and surplus of $300,000 and under.


First National's Bond Department Offers Convenience and Speed
With just one phone call to our bond department, you can get a quote;
buy or sell and arrange for payment and safekeeping of securities. You don’t
even need to pick up a pencil. First National does all the work.
Our bond department now has its own computer which can give you,
on short notice, the net advantage of a tax trade. In addition, the department
can keep you informed on market changes and trends; appraise your holdings
and make timely, pertinent recommendations.
Are your municipal holdings adequate? If you want a prompt, thorough­
going evaluation and analysis of your position, we’ll be glad to review your
portfolio and give you our suggestions. This service is available for the asking.
When you call the bond department, the man you talk to is an “ answer
man’ ’ — a qualified investment specialist who will give immediate attention to
your needs. For added convenience, dial our bond ^ - i / |
n 1 i n r q
department direct. The number is area code
1 " JL* 3 \ )c L .
Federal Reserve Bank of St. Louis

Northw estern

Banker, D e c e m b e r, 1965

all good
lvish-est o r
the holiday




First National Bank of Minneapolis
Member Federal Deposit Insurance Corporation
Federal Reserve Bank of St. Louis



i n n e s o t a




S e creta ry


M B A P la n s “ S ch ool ni Ktanhuuj **
Uniform Code Meetings Also Scheduled
Northwestern Banker

plans are being
made by the Minnesota Bankers

Association for a “School of Banking”
for Minnesota bankers.
Kenneth Wales, executive secretary
of the MBA, made the announcement
about the school from the platform of
the 16th annual Junior Bank Officer
and Staff Conference held in St. Paul
last month. It has not as yet been
approved by the MBA executive coun­
Although there are over 800 stu­
dents in AIB study groups in Minne­
sota, a survey has shown that very
few of the smaller banks throughout
the state are sending personnel to the
Graduate School of Banking at Madi­
son, Wis. The Minnesota school would,
therefore, complement the Graduate
School at Madison and AIB studies
rather than conflict with them.
Mr. Wales explained that the MBA
school would run for one week over
a period of two years. Enrollment
would be held to about 50 students,
and the courses would cover basic in­
formation on banking. Registrants
would be required to have two years’
banking experience.

Uniform Code Meetings

Touching on other MBA activities,
Mr. Wales explained that the Area
TV Program is now being sponsored
by some 550 banks over 10 stations,
with a current annual budget of $320,000. Plans are being made for a se­
ries of meetings on the Uniform Com­
mercial Code in January, February
and April in conjunction with the
Minnesota Bar Association and the
University of Minnesota. A separate
series will also be scheduled on Arti­
cle Nine of the Code. The Code be­
comes effective in Minnesota in July,
Mr. Wales told the junior bank offi­
cers that the MBA was concerned
about many legislative problems, in­
cluding the certificate of title bill, the
truth in banking bill, and action to
strengthen the state banking depart­
ment in Minnesota. Currently the
Minnesota banking commissioner is
appointed for a six-year term. Salary
is $12,500 per year, and during the
past six years Minnesota has had fourdifferent commissioners.
The 16th annual conference was
packed with top name speakers, in­

cluding Arthur Erpelding, district 10
AIB executive councilman; Donald
Gregerson, president of the MBA;
George Wasem, immediate past pres­
ident of the ABA Savings Division;
Rudolf Fichtel, director, AIB, New
York; Merle Stone, p re s id e n t of
NABAC; Dr. A. Reuben Gornitzka, ex­
ecutive director of Direction, Inc.,
Palm Desert, Calif.; Ray Monsalvatge,
management consultant from Dayton, Ohio; Robert W. Beaupre, vice
president of the First National Bank,
Minneapolis, and Mr. Wales.
Mr. Beaupre presented a highly in­
formative talk on the subject of “Bank
Ownership—Chances and Prices.” He
stated that increased interest on time
money has not slowed the demand for
the purchase of bank stocks. Current­
ly, there are still about 25 buyers for
every seller, and most banks are sell­
ing for a premium of 10 to 20 per cent
above book, according to Mr. Beaupre’s experience. He explained that
regardless of whether you use the
“book value” approach or the “liqui­
dation” approach in evaluating bank
stock, you should look at the return
on your investment after salaries and
all expenses are paid. He expressed
concern over the McClellan bill (S.
2575), which would limit borrowing
on bank stock to 30 per cent of the
purchase price. He elaborated by
warning delegates that there are not
enough bankers who are concerned
about federal legislation. He made a
strong point for independent banking
and the individual enterprise system,
suggesting that all bankers take an
active interest in bills affecting bank­
ing now before Congress.—End.

Northfield Bank Officer
Donald E. Hanson has begun new
duties as assistant cashier at the
Northfield National Bank. A native
of Rochester, he had previously been
employed at Mankato.

pi k&m§
L E F T — R ay M onsalvatge, management consultant, D ayton,
Ohio, and J. P. Deimore, chmn., M B A -A .I .B . Educ. Comm., and
v.p., Olmsted County B k. & Tr. Co., Rochester. C E N T E R —
A rthur A . Erpelding, D ist. 10 A .I.B . exec, councilman, and asst,
treas., Farmers and M echanics Sav. B k ., M inneapolis, admires
Federal Reserve Bank of St. Louis

special award presented to him b y Truman Jeffers o f M inne­
sota Bankers Assoc. R IG H T — K enneth W ales, exec. secy, of
M innesota Bankers A ssn., and Robert W . Beaupre, v.p.} First
N ational Bank, M inneapolis. M r. W ales, M r. M onsalvatge and
M r. Beaupre were featured speakers at the Conference.
N o r t h w e s t e r n Banker, D e c e m b e r, 1965


Twin City N ew s


MAJOR new service has been of­
A fered
by the Federal Reserve
Bank of Minneapolis to its member
banks, according to Hugh I). Galusha,
Jr., president. The service—The Func­
tional Cost Analysis Program — has
apparently interested the banks, he
reported, inasmuch as 65 per cent of
them have indicated a willingness to
participate in meetings at which the
program is to be explained in detail.
During the next two months, such
meetings will be held in four cities in
Montana, two in North Dakota, four
in South Dakota, two in Michigan,
one in Wisconsin and seven in Minne­
sota. Details of the dates and places
of the meetings will be forwarded to
the member banks in the near future.
Under the proposed program, initi­
ated in the First District approximate­
ly eight years ago and recently intro­
duced within the Seventh District,
bankers provide the Fed with various
data compiled on worksheets provided
by the Fed. Electronic data processing
machines are subsequently employed
by the Fed to print out individualized
reports for each of the participating
banks. In addition to providing each
bank with computerized costs, the
analysis will compare each bank’s fig­
ures with 10 additional banks selected
by the computer — five immediately
higher and five immediately lower—
on the basis of their similarity within
each area studied.
* * *
Re-election of two directors of the
Federal Reserve Bank of Minneapolis
was announced recently by Atherton
Bean, chairman of the board. The
directors are Curtis B. Mateer, execu­
tive vice president, Pierre National
Bank, Pierre, S. D., and John H.
Toole, president, Toole and Easter
Company, Missoula, Mont.
* % *
Metropolitan Airport State Bank,
Minneapolis, has been authorized to
change its name to Metropolitan State
Bank. In addition to changing its
name, the bank has changed its loca­
N o r t h w e s t e r n Banker, D e c e m b e r, 1965
Federal Reserve Bank of St. Louis

Savings and Customer Service Divi­
sion; Stanton M. Jorgens, to assistant
personnel officer in the Personnel De­
partment; Glenn S. Birkeland and
Iventon L. Grave to assistant secre­
taries in the Trust Department, and
C. Kirby Scroggins, to assistant man­
ager, St. Anthony Falls Office.
* * *
John W. Noble, Sr., president of
both the Normandy Motor Hotel and
Noble Realty C om pany, has been
named a director of University Na­
tional Bank, Minneapolis.
C. Bernard Jacobs, executive vice
president, National City Bank of Min­
neapolis, has been appointed treasur­
er of Discover America, Inc., a private
industry effort to encourage travel in
the United States.
* * *
The estate left by Edward G. Bre­
mer, president of the board of the
Commercial State Bank, St. Paul, has
been set at $882,029. Mr. Brewer died
May 4, at the age of 67, in Pompano
Beach, Fla.
He was the central figure in a cele­
brated kidnapping case in 1934 when,
on January 17, the gang led by Alvin
Karpis and Doc Baker held him for
$200,000 ransom. He was released un­
harmed February 7, 1934, in Roches­
ter, Minn., following the payment of
the ransom by his family.
* * *
John F. Nash, president, American
National Bank, St. Paul, has been
named general chairman of a public
fund drive to build a new lakeshore
Home of the Good Shepherd for girls
in North Oaks.
* * *
Named assistant vice presidents by
the board of directors were Newton K.
Arthur J. Holland, assistant vice
Fuller and Paul F. Colesworthy, both
president, Farmers and Mechanics
of the bank’s Commercial Division C, Savings Bank, Minneapolis, has been
and Gordon F. Clarke of the Install­ elected to a three-year term as gover­
nor of the Society of Real Estate Ap­
ment Banking Division G.
Others advanced were: David R. praisers. He will take office effective
Johnson to assistant cashier in the January 1, 1966.

tion. The bank was moved from 4943
34th Avenue S. to 4930 34th Avenue
* * *
John R. Montgomery, vice president
and trust officer of Midland National
Bank, has been presented his diploma
as a C h a rtered
L i f e Underwrit­
Following a
course of study
during the past
four years, Mr.
qualified for the
C.L.U. diplom a
after successfully
passing the fourhour
tion in each of the five parts of the
C.L.U. program.
Mr. Montgomery, who heads the
Midland National’s trust department,
is the only Chartered Life Underwrit­
er on the staff of any bank in Minne­
* * *
President Gordon Murray of First
National Bank of Minneapolis has an­
nounced the promotion of three com­
mercial department officers and the
advancement of five other staff mem­
bers to officer status.

Doug Johnson, John Ordos and Jack Weber give proof they have the equipm ent to help smooth out any banking problem.

Whatever the season

a call to M idland’s
Johnson, Ordos or W eber will find a fast answer to your banking
problems. Transits, investments, credits, operations, collections or
personal services o f any kind—these Midland correspondents will
hit the right trail fast. Next time you need modern full service
banking, give Midland a call.
Federal Reserve Bank of St. Louis


Midland National Bank
o f Minneapolis
Call 3 3 2 -0 5 1 1

• 4 01 S e c o n d A ve. So. • M in n e a p o lis , M in n . 5 5 4 4 0
M e m b e r F e d e r a l D e p o s it In s u r a n c e C o r p o r a tio n

Northw estern

Banker, D e c e m b e r, 1965


Minnesota News

Your man
At the


N ew Itniltlinff fo r


N E W H O M E of Farmers & M erchants State Bank, Preston. Officers and employees
recently moved into the new quarters, and last month held an open house celebration.

Farmers & Merchants State
Bank of Preston last month moved

Vice President

H e ’l l b e h a p p y
to h e lp y o u w it h

into its new building and opened for
business in its new quarters.
The new bank offers several new
services, including a drive-in window
and an after-hour depository facility.
The new single-story structure has a
basement and includes 4,000 square
feet of area on each level.
The bank had been housed in its
former facility since 1916.
Open house was held in the new
qunarters Saturday, November 20, ac­
cording to W. A. Garratt, president.
A. H. Langum is chairman of the
board and A. L. Christianson is vice
president and cashier.

N eed s!
" The Largest Independent
Full Service Bank
In the Upper M idw est”

Seventh and Robert
S aint Paul

Member Federal Deposit Insurance
Corporation • Federal Reserve System

N o r t h w e s t e r n Banker, December, 1965
Federal Reserve Bank of St. Louis

A remodeling and modernization
program begun several months ago at
the First National Bank of Carlton
has been completed and an open house
was recently held to celebrate the ac­
complishment. The bank building was
renovated inside and was also given
a new exterior.

Rochester Banker Charged

Larry E. Muldoon has been elected
an assistant cashier of the Rochester
State Bank. He will be managing of­
ficer of the installment loan depart­

A preliminary hearing was set for
late last month for Joseph S. Cotter,
vice president, First National Bank of
Rochester, charged with theft by false
The original report concerning Mr.
Cotter was made by the state public
examiner’s office. Examiner Robert
A. Whitaker told the Olmsted County
Board of Commissioners that the bank
executive had admitted embezzling
$75,000 in county funds during the
past seven years, in addition to $40,000 from other accounts.
At the hearing in St. Paul Federal
Court he pleaded guilty. Judge Ed­
ward J. Devitt referred the case for
presentence investigation.

Join Winona Board

Buys Redwood Falls Building

At a recent meeting of the board of
directors of The First National Bank
of Winona, action was taken to in­
crease the board by two members and
to increase the capital of the bank by
$500,000 by issuance of a capital de­
Added to the board were Donald W.
Gray, manager of H. Choate & Com­
pany, and Royal G. Them, president,
Them Machine Company.

The State Bank of Redwood Falls
has purchased the Redwood Turkey
Hatchery building in Redwood Falls
and has announced plans to open a
drive-in facility on the site. The bank
will take possession of the building
March 1, 1966.

Grant E. Anderson
Grant E. Anderson, director of the
American State Bank in Mankato, died
recently at the age of 48 years.

A ll of Y o u r
C o rre sp o n d e n t

Carlton Open House

New Rochester Officer

New Kenyon Officers
Two employees of the Security State
Bank of Kenyon have been elected as­
sistant cashiers, according to Arthur
M. Ellingson, president.
Duane Schaper, employed by the
bank since November 1, 1960, was
named assistant cashier and farm rep­
resentative and David Redfield, an em­
ployee since July 31, 1962, was named
assistant cashier and teller.

Charter Denied
The charter application for the pro­
posed Southwest Fidelity Bank &
Trust Company at Edina was denied
last month by the Minnesota Com­
merce Commission.
Chief objection to the application
was presented by Donald Judkins,
president of the First Southdale Na­
tional Bank, Edina. He pointed out
that only 24 per cent of his bank’s
present volume came from the pro­
posed bank’s trading area because it
is undeveloped and not densely popu­

Minnesota News

opening of the newly-com­
pleted drive-in banking facility





State Bank of Faribault held open
house late last month to celebrate com­
pletion of the bank’s new expansion
program which included a new addi­
tion to house an enlarged savings de­
partment and offices for the agricul­
tural and real estate departments.

To Brownsdale Bank

Celebrate 5 0 Years
An open house will be held Decem­
ber 18 to mark the 50th anniversary
of the Peoples State Bank, Milan, ac­
cording to President I. M. Thompson.

New III in Open House

Capital Increases

State Bank, New Ulm, last month
held a two-day open house marking
the completion of an extensive remod­
eling project for both the exterior and
the interior of the bank.
An adjoining business establish­
ment was taken over as part of the
project, nearly doubling the bank’s

Capital funds of Northwestern Na­
tional Bank of Hopkins were in­
creased $500,000 as a result of action
by the bank’s stockholders and direc­
tors last month, according to John
J. Tarasar, president.
Stockholders approved a board rec­
ommendation to issue $500,000 in 4%
per cent capital notes due in 1990.
Completion of the capital notes trans­
action was completed between the
bank and Northwest Bancorporation.
The $500,000 involved is part of the
proceeds of the $30 million in deben­
tures recently issued by Northwest
The State Bank of Worthington has
also been authorized to increase the
amount of its capital stock from $250,000 to $300,000 by stock dividend.




New Rochester President



Ray L. Roberts has been elected
president of the First National Bank
of Rochester, effective January 1, 1966,
succeeding Robert A. Bezoier, the
bank’s president for the past 11 years.
Mr. Bezoier, 65, will retire according
to the bank’s established policy. He
will, however, remain on the bank’s
board of directors.
Mr. Roberts, 52, has been an em­
ployee of the bank for the past 16%
years. He was named an assistant
vice president in 1955 after having
managed the time pay department for
Federal Reserve Bank of St. Louis

Your man
At the

Faribault Open House

Robert L. Smith, Jr., Austin, has
joined the State Bank of Browndale
where he has been elected an assist­
ant cashier.

The Security State Bank in Lind­
strom celebrated its 50th anniversary
last month with an open house for
customers and friends.


a total of six years. He was named
vice president in January, 1957, exec­
utive vice president in January, 1962,
and was elected a member of the
bank’s board of directors last Janu­

constructed by Western state Bank,
Marshall, was held last month in con­
junction with the bank’s 30th anni­
The two-window drive-in facility,
which features a pneumatic tube con­
nection with the main bank building,
is located adjacent to the city’s main
parking lot.
The two-day open house celebration
was held Friday and Saturday, No­
vember 26 and 27. More than 3,000
people attended, it was reported by
A. E. Persons, president.



GOP Fund-Raiser
Clifford Sommer, president, Secu­
rity Bank & Trust Company, Owatonna, is the state chairman for a $100a-plate Republican dinner scheduled
for January 25 in St. Paul. Mr. Som­
mer, a veteran fund-raiser, also headed
the $100 “Dinner with Ike” in 1960
and was party chairman for the “May
Day” fund drive earlier this year.

Assistant Vice President

H e ’l l b e h a p p y
to h e lp y o u w it h
A l l of Y o u r
C o rre sp o n d e n t
N eed s!
“ The Largest Independent
Full Service Bank
in the Upper M idw est“

S even th and R obert
S aint Paul

Member Federal Deposit Insurance
Corporation • Federal Reserve System

N o r t h w e s t e r n Banke r, D e c e m b e r , 1965

Minnesota News


( imi in issì o ti A p p ro vo * lli'inoriil
O f ISaiil,- ih n r tv r in F a irm on t


State Commerce Commission
approved the move by the
Northrup Peoples State Bank to the
community of Fairmont, approximate­
ly six miles from Northrup.
The bank’s proposed name change,
to State Bank of Fairmont, was also
approved following a recent hearing.
As was reported in last month’s
N o r t h w e s t e r n B a n k e r , petitions had
been circulated in the Northrup vicin­
ity in opposition to the application for

permission to move the bank and to
change its name.
The State Commerce Commission,
before which the hearing was held, is
composed of the commissioners of
banking, insurance and securities.
The bank will move its charter to
Fairmont where it will be located in
the projected Madsen Shopping Cen­
Presenting the petition for the move
and the change of name were Joseph

G. Horvei, executive vice president
and cashier; Attorney Charles R.
Zierke and members of the bank’s
board of directors.
All three Fairmont banks — Fair­
mont National Bank, First National
Bank and Martin County National
Bank — were represented by officers
and attorneys opposed to the change.
Their objections were based on the
premise that current banking facili­
ties in Fairmont are adequate for the

To Madison Lake Board
Ben Fasnacht, Madison Lake, has
been named a new director of Peoples
State Bank there. His father, the late
John Fasnacht, was a member of the
board for many years.

2 0 Years in Ogilvie
The Ogilvie State Bank last month
celebrated its 20th anniversary of
service to the community and the sur­
rounding area. A. Dan Fiala is presi­
dent of the bank.

New Ulin Board Member

First V.P.

Donald J. Gollnast, vice president
of Citizens State Bank, has been elect­
ed a director of the bank. He will
complete the term of the late Elmer
Backer. An employee of the bank for
the past 16 years, Mr. Gollnast was
promoted to cashier in 1960 and to
vice president upon the retirement of
Herb H. Prahl approximately two
years ago.


Banker Replies When
Council Suggests Bank


A.C. & Aud.





s io u x

N o r t h w e s t e r n Banker, D e c e m b e r ,
Federal Reserve Bank of St. Louis


cxT ir

A resolution to investigate “the pos­
sibility of establishing another bank
in the village of Rush City” by the
village council has brought a rebuttal
from H. R. Hommedal, Sr., president
of the State Bank of Rush City.
According to the minutes of the
meeting, the council was approached
by residents of the community who
felt there was “inadequate banking”
in Rush City.
The resolution said, “The Village
Council feels it would be for the eco­
nomic benefit of the Rush City area to
investigate the possibility of establish­
ing another bank in the town.”
According to Mr. Hommedal, no
council member had approached him
to investigate the bank’s policies. He
cited figures which reflected a growth
from $335,000 in loans and discounts
in 1947 to $1,412,000 at the present
time. He said that, during the same
period, deposits rose from $2,384,000
to $3,338,000. “ It seems we’re taking
pretty good care of the community,”
he commented.





Mr. Ode has been in a farm partner­
ship with two brothers.

Sm ith lia k o la

SBA-Banker Conferences



W atertown



State Banking Actions
The South Dakota Banking Com­
mission, at its regular monthly meet­
ing in November, approved a request
for change of location for a detached
drive-in facility for the Farmers and
Merchants Bank of Watertown. The
new location is at the corner of High­
way 212 and Second Street S. W.
Approval was granted to the Minor
County Bank, Howard, to amend its
articles of incorporation to extend its
corporate charter to February 15,
The First State Bank, Armour, was
given approval to amend its articles
of incorporation to operate branch
banks. The application to operate a
branch bank at Delmont will be acted
upon at a hearing to be held Decem­
ber 16 at the office of the Superintend­
ent of Banks.

New President at Pierre
Pictured here is Clarence E. Neuharth, whose elec­
tion as president
of the First Na­
tional B a n k of
P ierre w as re­
p o r te d in last
m o n th ’ s issu e.
Mr. Neuharth had
b een e x e c u tiv e
vice president of
F i r s t Nat i onal
sin ce 1960. As
C. E. N E U H A R T H
president, he suc­
ceeds Lyle L. Branch, 80, who died

Joins Yankton Bank
Delton Aasland has joined the staff
of the First Dakota National Bank,
Yankton, as a note teller. A native of
Wilmot, he graduated from the Uni­
versity of South Dakota in 1958. He
was employed by a Sioux Falls bank
from 1958 to 1962 and from 1962 until
1965 he was employed by banks in
Federal Reserve Bank of St. Louis

San Diego, California. Mr. Aasland’s
wife, Sara, is the daughter of Mr. and
Mrs. Hugh C. Danforth. Mr. Danforth
is vice president and cashier of the
First Dakota National Bank.

Joins Bank in Salem
Ralph Dybdahl, a native of Volga,
has joined the staff of the McCook
County National Bank, Salem, accord­
ing to Harvey Eichinger, executive
vice president. Mr. Dybdahl came to
Salem from Mitchell where, for the
past five years, he had been loan man­
ager for Associates Finance Company.

Former State Superintendent
Yankton Vice President
The board of directors of the Valley
State Bank of Yankton have an­
nounced that Oscar Brosz, Sioux Falls,
has assumed the position of vice presi­
dent of the bank. Mr. Brosz was
formerly executive officer of the State
Bank of Bellingham, Minn. From 1961
to 1965. Mr. Brosz served as South
Dakota superintendent of banks.

Watertown Open House
Nearly 8,000 persons attended the
Farmers and Merchants Bank of
Watertown two-day open house party
recently. The event marked the com­
pletion of a new bank building.

Tyndall Project Set
Plans to remodel and modernize the
Security State Bank, Tyndall, have
been revealed by Donald P. Laird,
president of the bank. The project
will include construction of a new
doorway, night depository and new
windows on two sides of the building.

To Sioux Falls Board
Robert W. Ode, Brandon, has been
named to the advisory board of the
Stock Yards Branch of Northwestern
National Bank. For the past 13 years,

Nearly 100 South Dakota bankers
attended Banker Small Business Ad­
ministration Conferences in Sioux
Falls and Rapid City recently. Prin­
cipal speaker at the Sioux Falls con­
ference was Tim Armstrong, loan
specialist, and at the Rapid City meet­
ing, George Saunders, area admin­
istrator, both from Denver.
The Sioux Falls meeting was opened
with a welcome from Curtis Lovre,
president, Northwestern N a tion a l
Bank, Charles Uncllin, executive vice
president of the First National Bank
of the Black Hills, opened the Rapid
City meeting, according to Gerald A.
Bruget, loan specialist, Sioux Falls.

Sioux Falls Manager
Erling Haugo, president of Valley
National Bank of Sioux Falls, has an­
nounced the election of H. G. Mosby
as manager of the
New Park Ridge
Branch of Valley
N a tion a l Bank
and of R. C. Hers1w i . 1- m i n i a . e i ’ f n i


the H a rrisb u rg


M r- M osby is

' ¿f’ ’


4» *



H .G . M O S B Y

\ ice president of
PH Valiev Na t i o nal



a n d




,b e ? n

manager of the
Harrisburg Branch. His successor,
Mr. Hersrud, is assistant cashier and
has been in the main office of the
bank for the past eight years.

Hot Springs Hits Mark
The American National Bank and
Trust Company, Hot Springs, last
month recorded deposits in excess of
$3 million, after five years in the com­
munity. The bank opened its Hot
Springs Branch October 24, 1960.

Francis G. Hyde
Francis G. Hyde, 72, lifelong resi­
dent of Vermillion and former assist­
ant cashier of the National Bank of
South Dakota there, died recently. Mr.
Hyde had been assistant cashier at the
bank for 43 years prior to his retire­
ment in 1958.


Banker, D e c e m b e r, 1965


South Dakota News
( -------------------------------------------- \

Your man
At the

F a rew ell T ribu te fur finUieliseu
than 200 bankers ended a
one-day bank management semi­

nar at Huron last month with a
farewell tribute to A. S. (Barney)
Gullickson, executive secretary of the
association who retired effective De­
cember 1.
Mr. Gullickson was succeeded in the
post by Roy W. Terwilliger, a native
South Dakotan, who had previously
served as secretary to the Greater
South Dakota Association.
Mr. Gullickson, who has accepted a
position as an assistant vice president
of the First Bank Stock Corporation,
where he will be in charge of public
affairs, was the object of several comN

o r t h

“ *


pliments paid by R. H. Walrath,
Watertown, president of the South
Dakota Bankers Association.
Mr. Walrath paid tribute to the
accomplishments of Mr. Gullickson’s
term and noted that both the asso­
ciation and the banking industry
throughout the state were benefited
by his leadership.
The association presented Mr. and
Mrs. Gullickson with a monogrammed
silver tray as a going away gift.

Sioux Falls SSoception
An open house reception was held
last month at the new Park Ridge
branch of the Valley National Bank,
Sioux Falls.

e s t e r n


Harris Bank Promotions

/¿Y E A R S
Assistant Vice President



H e ’l l b e h a p p y


to h e lp y o u w it h
A ll of Y o u r
C o rre sp o n d e n t
N eed s!
" The Largest Independent
Full Service Bank
in the Upper Midwest ’ ’



CECIL D. BARTHOLOW, President, W . E. Bartholow & Son
Construction Co., Huron
PAUL BATCH ELLER, President, Zip Feeds, Inc., Sioux Falls
ROBERT W. BEST, President, Best Business Machines, Inc.,
Sioux Falls
A. M. EBERLE, Dean of Agriculture, Emeritus, South Dakota
State College, Brookings
JOHN E. GRIFFIN, President, Lewis Drug Co., Sioux Falls
JACK O. HARRINGTON, Vice President and Plant Manager,
John Morrell & Co.
W . J. H El M ERMAN, Vice President, Northwestern National
Bank of Sioux Falls, Sioux Falls
JOE KIRBY, President, Western Surety Co., Sioux Falls
W ILLIAM R. LAIRD, Retired, Sioux Falls
ALBERT F. LARSON, President, Larson Hardware Co.,
Sioux Falls
C. A. LOVRE, President, Northwestern National Bank of
Sioux Falls, Sioux Falls
J. VIRGIL LOWE, Sioux Falls
PIERCE H. McDOWELL, President, Ho wait-McDowell, Inc.,
Sioux Falls
HENRY T. OUINN, Retired, John Morrell & Co., Sioux Falls
FRANCIS M. REAGAN, President, Regan General Agency,
Sioux Falls
J. E. RONINGEN, Vice President and General Manager,
Sioux Falls Stockyards Co., Sioux Falls
H IRAM G. ROSS, President, H. W. Ross Lumber Co., Sioux
A LVIN A. SCHOCK, President, Terrace Park Dairy, Sioux
CARL E. VOIGT, Sioux Falls
MAURICE B. WILSON, Chairman of the Board, Wilson
Storage and Transfer Co., Sioux Falls

S even th and Robert
Saint Paul

Member Federal Deposit Insurance
Corporation • Federal Reserve System

o r t h w e s t e r n Banker, D e c e m b e r , 1965
Federal Reserve Bank of St. Louis


“ D E L L R A P ID S - B R O O K IN G S

Harris Trust and Savings Bank,
Chicago, has announced the appoint­
ment of eight new vice presidents and
the addition of a planning officer.
The new vice presidents are: John
R. R. Roser, international banking
department; V. Scott Rice and George
R. Slater, banking department; C. Rus­
sell Cooper, operations department;
Preston T. Luney and Geoffrey W.
D isston , in v e s tm e n t department;
James E. Mandler and William H.
Spitler, trust department. All of the
new vice presidents have been with
the Harris as assistant vice presidents
with the exception of Mr. Roser, who
was with Empire Trust in New York
as vice president and head of the for­
eign banking department.
Robert F. Rebeck, formerly with In­
ternational Minerals & Chemical Cor­
poration, is a new planning officer
for the bank.

Promoted at Northern Trust
Two officer promotions have been
announced at the Northern Trust
Company, Chicago.
Edward D. McGrew, officer in charge
of the bond department, was appoint­
ed a senior vice president, and Ronald
A. Palmer, an operating department
officer, was named manager of the
check processing division.

Bank o f America Promotions
Peter M. Nelson has been promoted
to vice president in the national divi­
sion in Bank of America’s San Fran­
cisco head office. A veteran of 10
years with the bank, he holds nation­
wide credit responsibilities in the con­
struction, electronics and communica­
tions industries.

ative dry, with preventing a major
loss through sprouting.
“We were pretty pessimistic, but, in
spite of the wet September, in our
six-county area, the 1965 crop value
is estimated at $33.3 million. Income
from the 1964 crop was $27.9 million,”
Mr. Johnson reported.

X o rtli D ako ta




Heads Hereford Association


H old A tf C red it C on feren ce
Fourth Annual North Dakota
Bankers Association Agriculture
Credit Conference was scheduled for
Thursday and Friday, December 2 and
3, at Oak Manor Lodge, Fargo.
Among those featured on the pro­
gram was Ted P. Axton, chairman of
the American Bankers Association
Agricultural Committee and president
of the Lafayette Savings Bank, Lafay­
ette, Indiana.
G. C. Anderson, chairman of the
NDBA Agricultural Committee and
executive vice president of The Bank
of Tioga, presided at the conference.
Also in attendance was Gordon Weber,
president of the NDBA and president
of the Farmers State Bank, Lisbon.
Warren F. Vaughan, vice president
of Security Trust and Savings Bank,
Billings, Montana, was also on the
program to discuss the “Uniform Com­
mercial Code in Farm Lending.” The
Code goes into effect in North Dakoto July 1, 1966. Mr. Vaughan was also
a featured speaker, on the subject of
the Code, at the NDBA annual con­
vention earlier this year.
Fred Sobering, extension economist
with North Dakota State University,
discussed the “Outlook for Agricul­
ture in Ncrth Dakota.”
Guest speaker at the noon luncheon
Friday was Senator Milton R. Young
who considered “ Federal Farm Legis­
lation.” The Friday afternoon session
was devoted to a panel discussion of
“Credit Problems of Farmers.” Moder­
ator of the panel was H. M. Holte,
agricultural representative, Red River
National Bank, Grand Forks. Mem­
bers of the discussion group were the
following: Roy H. Johnson, assistant
vice president, Foster County State
Bank, Carrington; Clark Jenkins, agri­
culture department manager, Mer­
chants National Bank and Trust
Company, Fargo; Ray S k o rh e im ,
assistant vice president, First Nation­
al Bank, Minot; S. D. Jacobsen, presi­
dent, First State Bank, Sharon; and
Arden Burbidge, Park River farmer.
Presiding at the Friday evening
banquet was Henry Ness, agricultural
Federal Reserve Bank of St. Louis

representative, Fargo National Bank.
Chairman of the entire event was
Warren DeKrey, assistant vice presi­
dent, National Bank and Trust Com­
pany, Fargo.

Native Son to Return
To Grand Forks Bank
H. F. Buegel, Jr., vice president of
the Jamestown National Bank, James­
town, has been named to succeed
Lyle W. Anderson
as vice president
and a director of
the Red River Na­
tional Bank of
Grand Forks. Mr.
Buegel, a native
of Grand Forks,
was elected last
m o n t h b y the
board of directors
of the Red River
H. F. B U EG EL , JR.
National Bank.
Mr. Beugel attended grade and high
school in Grand Forks and was gradu­
ated from the University of North
Dakota with a degree in business ad­
ministration in 1950. He joined the
staff of the Red River National the
same year and, in 1952, became cashier
of the First State Bank, Canclo. In
1954, he joined the staff of Jamestown
National where he was to hold posi­
tions of assistant cashier and vice

Bank President Reports
On Minot’ s Improved Crops
George M. Johnson, president of the
First National Bank of Minot, last
month reported to the directors of
Northwest Bancorporation, paren t
holding company, that last August,
before five weeks of extremely wet
weather set in, it appeared that the
dry land farm crop in the Minot
vicinity would set new production
As it turned out, the crop was even
better than anticipated.
Mr. Johnson credited the cool
weather and tough stubble, which
kept the mown grains high and rel­

Lorin Duemeland, veteran Hereford
breeder and co-owner of Patterson
Land Company, Bismarck, is the new
president of the
A m e rica n Here­
ford Association.
Mr. D uem eland
was elected at the
organization’s an­
n ual b u s i n e s s
m e e tin g d u rin g
the A m e r i c a n
R o y a l Livestock
Show. “ No great­
in the
L. D U E M E L A N D
ca ttle b u sin e ss
can come to a man than to be elected
as an officer or director of this organi­
zation that represents the most pop­
ular beef cattle in the United States,”
Mr. Duemeland said.
Mr. Duemeland, 49, and his father,
George, in 1937 purchased the Patter­
son interests in three ranches located
in central North Dakota covering an
area of 24,000 acres. The land is now
owned by Mr. Duemeland and his son,
Skip. They run a 300-head herd of
registered Hereford cows and about
1,500 commercial Herefords.

Heads New York Office
Paul E. Balog has joined the New
York office of the First Wisconsin Na­
tional Bank of Milwaukee. The ap­
pointment was made to facilitate ex­
panding operations of the bank’s mu­
nicipal bond department in eastern
markets. The office in New York is
located at 26 Broadway.
The bank also announced a new
vice president in Milwaukee. He is
James E. Liek in the home loan divi­

Cooperstown Merger
The F.D.I.C. has approved an appli­
cation for the Binford State Bank,
Binford, to merge with Security Trust
Company, Cooperstown, under char­
ter of Binford State Bank with the
title of Farmers and Merchants Bank
in Cooperstown. Approval was also
granted to change the location of the
main office from Binford to Cooper­
stown and to convert the present
main office of the Binford State Bank
to a paying and receiving station.
N orthw estern

Banker, D e c e m b e r , 1965



Your man
At the




Vice President

H e ’l l b e h a p p y
to h e lp y o u w it h



H. Williams

William H. Williams, 62, former
president of the First Chouteau Coun­
ty Bank, Fort Benton, died last month
shortly after suffering a stroke.
Mr. Williams, who was born near
Marysville, grew up in FFelena and
began his banking career there as a
messenger for the Conrad bank at the
age of 15 years.
In 1929, when the Helena banks
merged, he became a teller for Mon­
tana Trust and Savings Bank and la­
ter was associated with the First Na­
tional Bank. In 1932, he transferred
to National Park Bank, Livingston.
From 1935 until 1941, he was cash­
ier of the First National Bank in
Miles City. He then became assistant
cashier of the First National Bank in
Great Falls and, 10 years later, ac­
cepted the presidency and manager­
ship of First Chouteau County Bank
in Fort Benton. He held that position
until his retirement in July, 1959.

A ll of Y o u r
C o rre sp o n d e n t
N eed s!
" The Largest Independent
Full Service Bank
in the Upper M idw est"

Moves to Chester
Elmer Lindstrom, cashier of the
Farmers and Merchants Bank, Rudyard, last month succeeded Bruce Mil­
ler as cashier of the Liberty Bank of
Montana, Chester.
Mr. Miller, who had been cashier
and second vice president of the Lib­
erty Bank, was transferred to Chi­
nook where he became managing offi­
cer of the Blaine Bank of Montana.
Mr. Lindstrom had been cashier of
the Rudyard bank since 1963. Prior
to that time, he was with the Citizens
Bank of Montana at Havre.

Heath, all of West Yellowstone, and
Philip R. Sandciuist of Bozeman.
The new bank will provide West
Yellowstone with its first direct bank­
ing and will be the only bank adja­
cent to Yellowstone Park.


NABAC Meeting Held
The Glacier Conference of the Asso­
ciation for Bank Audit Control and
Operation met Saturday, December 4,
at the Holiday Inn in Great Falls.
The meeting featured the following
Jack Dano, vice president, First National Bank of Great Falls, “What a
Bank Examiner Looks for in Internal
Controls” ; R. T. Smith, president,
First Madison Valley Bank, Ennis,
“Problems in Starting a New Bank”;
Norman Johnson, assistant vice presi­
dent, Montana Bank of Great Falls,
“Death of a Customer;” and an address
concerning control by an agent of the
Federal Bureau of Investigation.
A panel discussion was held follow­
ing the scheduled speeches. Featured
as the luncheon speaker was Richard
B. Reinholtz, educational consultant
for School District One in Great Falls.

Head Canadian Regions
The Canadian Imperial Bank of
Commerce has announced the appoint­
ment of C. M. Laidley as regional gen­
eral manager international at Toronto, and of R. D. Fullerton as regional
general manager, Saskatchewan at
Regina. Both men at times have been
attached to the bank’s New York agen­







New Yellowstone Bank

Seventh and Robert
Saint Paul
2 2 2 -6 6 6 6

Member Federal Deposit Insurance
Corporation • Federal Reserve System



D e c e m b e r , 1965
Federal Reserve Bank of St. Louis

The state banking department has
approved a charter for the First Se­
curity Bank of West Yellowstone,
ground has been broken for the con­
struction of the new building and offi­
cials report that the bank will hope­
fully open for business in May or
June, 1966.
The proposed bank will have a cap­
ital structure of not less than $150,000.
Incorporators of the institution are
Joe G. Eagle, Eugene W. Cheatley,
Calvin W. Dunbar and Donald J.

Offers TV Commericals
The Foundation for Commercial
Banks will offer “Full Service Bank”
television commercials to banks for
local cooperative campaigns as well
as for individual use for the first time
this year, Richard B. Beal, executive
director, announced.
Two series of commercials are avail­
able under the plan and will be leased
to banks on a first-come first-served
basis. Rental rates and other informa­
tion can be obtained from Foundation
headquarters in Philadelphia.




Little Kim was abandoned by her mother
in an alley o f Seoul, Korea. She was found
curled up behind a box, shivering, hungry
and frightened.
Her G.I. father probably doesn’t even
know she exists. And since Kim is a mixedblood child, no relative will ever claim her.
Only your love can help give little Kim,
and children just as needy, the privileges you
would wish for your own child.
Through Christian Children's Fund you
can sponsor one o f these youngsters. We use
the word sponsor to symbolize the bond of
love that exists between you and the child.
The cost? Only $10 a month. Y our love is
demonstrated in a practical way because your
money helps with nourishing meals . . . medi­
cal care . . . warm clothing . . . education . . .
understanding housemothers . . .
And in return you will receive your child’s
personal history, photograph, plus a descrip­
tion o f the orphanage where your child lives.
Y ou can write and send packages. Your child
will know who you are and will answer your
letters. Correspondence is translated at our
overseas offices.
(If you want your child to have a special
gift— a pair o f shoes, a warm jacket, a fuzzy
bear— you can send your check to our office,
and the entire amount will be forwarded,
along with your instructions.)
Will you help? Requests com e from or­
phanages every day. And they are urgent.
Children wrapping rags on their feet, school
books years out o f date, milk supplies ex­
hausted, babies abandoned by unwed mothers.
Since 1938 thousands o f American spon­
sors have found this to be an intimate, personto-person way o f sharing their blessings with
youngsters around the world.
Little Kim and children like her need your
love— w on’t you help? Today?

Sponsors urgently needed for children in:
India, Hong Kong, Korea, Japan, Formosa,
Federal Reserve Bank of St. Louis

Write today: Verbon E. Kemp

27 Years Service

Richmond, Va. 23204
I wish to sponsor a □ boy
□ girl in
(Country)_________________________________ or,
□ Choose a child who needs me most.
I will pay $10 a month ($120 a year)
I enclose my first payment o f $____________
Send me child’ s name, story, address, and
I cannot sponsor a child but want to give
□ Please send me more information

N am e____________________________________ __
State_________________________ Z ip-------------------

Government Approved, Registered (V F A 080) with Advisory Committee on Voluntary
Foreign Aid. Gifts are tax deductible.

N orthw estern

Banker, D e c e m b e r,



No problem

istoo small to receive
our personal attention

from George Alff, Don Ferrel, Ray Harper, Kent Olin
and all the folks at Denver U.S.

' t h a t 's

th e b a n k f o r m y m o n e y ! "

N o r t h w e s t e r n Banker, D e c e m b e r ,
Federal Reserve Bank of St. Louis


D e n v e r 17, C o lo ra d o


i 'olornrio

»w s

Colorado Bankers Assn.

/*o.s'.sf7»/c M p fim * / ‘V f/ I tis ir i f f
REATION of a new Federal Re­ meyer is the son of Herb Echtermeyer,
serve Bank district, with head­ senior vice president of the Omaha Na­
quarters in Denver, was reported lasttional Bank. A brother, James R.
month to be a definite possibility by Echtermeyer, is vice president of
John W. Snyder, vice president in American State Bank, Yankton, S. D.
charge of the Denver branch of the
Federal Reserve Bank of Kansas City.
Durango Bank Hearing
The new building which will house
Members of the Colorado Bank
the Denver branch is scheduled to be Board last month opened a hearing
under construction early next year. to determine whether Durango should
Mr. Snyder disclosed that the building have a third commercial banking in­
may be constructed to serve as a dis­ stitution. The hearing is on the appli­
trict headquarters.
cation of the owners of the Turner
While expansion of the Federal Re­ Industrial Bank of Durango to convert
serve System’s 12 present banking dis­ the institution into a full-service com­
tricts has been a topic of discussion mercial bank.
for several years, nothing official has
The move is opposed by the town’s
ever been announced and Mr. Snyder two other banks—the First National
emphasized that such an expansion re­ Bank of Durango, controlled by the
mains only a possibility.
well-known Pueblo banking family of
William M. and Helen Thatcher
White, and the Burns National Bank,
Echtermeyer to Denver
whose president is Don F. Delano,
Don Echtermeyer, former assistant Denver, former Central Bank vice
vice president and manager of the president.
credit department of Commerce Trust
Company, Kansas City, has been added
Wheat Ridge Appeal
to the staff of The Central Bank and
A court decision, which ordered the
Trust Company, Denver, according to
banking commissioner to
Max G. Brooks,
c h a ir m an a n d issue a charter to the proposed Wheat
president of Cen­ Ridge Bank, will be appealed to the
state’s supreme court, according to
Bloom, bank commissioner.
Mr. Echtermey­
As was reported in last month’s
er h a s b e e n
e l ec te d assistant N o r t h w e s t e r n B a n k e r , District Judge
v i c e p re s i d e n t George G. Priest had claimed, in his
and assumed his ruling, that the board and former
new dut i es De­ Banking Commissioner Frank Goldy
had acted arbitrarily in denying the
cember 1.
charter a year ago.
D. H. E C H T E R M E Y E R
The proposed bank would be headed
er graduated from
the University of Omaha in January, by Herman F. Feucht, retired senior
1959, with a B.A. degree in business vice president of the American Na­
and economics. He joined the train­ tional Bank, Denver.
ing program at Commerce Trust in
March of that year. After having
New Bear Valley Bank
worked in the bank’s credit depart­
Ground breaking and construction
ment for 18 months, he was promoted began last month on The First Nation­
to the correspondent bank department al Bank of Bear Valley’s new building.
and was assigned to call on bank’s in Part of the $5.5 million expansion of
the state of Kansas. He continued in Bear Valley Shopping Center, the
this assignment for three years before bank building will be contemporary in
returning to the credit department as design with a semi-formal circular
theme featuring a colonnaded court­
A native of Omaha, Mr. Echter­ yard and pool.

Federal Reserve Bank of St. Louis

A ksel Nielsen, pres., M ortgage In vest­
ments Co.; Douglas Johansen, James Sudler A ssociates; Gerald H, Phipps, pres.,
Gerald II. Phipps, Inc., and Thomas P.
O’Rourke, exec. v.p. & cash., The First
N ational B ank of Bear V alley , participate
in groundbreaking ceremonies fo r the
bank’s new building.

The bank, an affiliate of The Na­
tional Bank of Denver, opened in
temporary quarters in the Bear Val­
ley Shopping Center June 15, 1964.
Thomas P. O’Rourke, vice president
of The First of Denver, is executive
vice president and cashier of The
First of Bear Valley.

Investment Bankers Elect
Thomas P. Owen of Francis I. Du
Pont & Company’s Denver office, has
been elected chairman of the Rocky
Mountain Group of the Investment
Bankers Association of America.
Mr. Owen succeeds Paul W. Gorham
of the Denver office of Hornblower &
Weeks-Hemphill, Noyes.
J. William Sorensen, Boettcher &
Company, was elected vice chairman;
Richard Muir, Schwabacker & Com­
pany, Salt Lake City, was named vice
chairman and James Coughlin, Cough­
lin & Company, was elected secretarytreasurer.

Reserve Bank Cashier
Dan S. Spencer, Jr., Omaha, was
named last month as cashier of the
F e d e r a l R e s e r v e Bank’s Denver
Mr. Spencer succeeded Harvey L.
Stempel who retired November 30.
Succeeding Spencer is Robert D.
Hamilton, now planning department
manager at the Omaha branch.
Mr. Stempel joined the Denver
branch when it opened in 1918 and
had been cashier since 1952.

Honor and Promotion
Harley N. Patton, Jr., vice president
of Central Bank and Trust Company,
Denver, and head of the bank’s install­
ment loan department, has been ap­
pointed to the advisory board of the
American Bankers Association install­
ment credit committee for the 10th
Northwest ern

Banker. December, 1965


C o lo ra d o -W y o m in g


Federal Reserve District.
Dale Brooks, manager of the loan
and discount department of the bank,
has been elected an assistant cashier.
A full-time employee of the bank since
1959, he will continue as manager of
the loan and discount department.

Wyoming IVews
Wyoming Bankers Assn.

Io A .B .A . Committee
C. Joe Filler, senior vice president,
The First National Bank of Denver,
has been appointed chairman of the
A.B.A. Mortgage Finance committee,
according to Archie K. Davis, A.B.A.

Tidvall to Nevada
Preston E. Tidvall, a banking official
for 25 years and a deputy Colorado
bank commissioner for the past 10
years, has been appointed to the $15,000-per-year position of superintendent
of banks for Nevada with head­
quarters in Carson City.

New Directors, Officers
Four new directors and five officers
have been named by the Colorado
State Bank of Denver, according to
Elwood M. Kullgren, president.
The new directors, all added since
the bank consolidated with Citizens
Savings Bank October 15, include the
former president of Citizens Savings,
Ralph E. Nelson.
Others are Finlay M. Robinson,
Richard E. Pate, Jr., and William
Mr. Nelson was also named senior
vice president and four additional
former officers of Citizens Savings
were name d officers. They are:
Robert S. Anderson, vice president;
James K. Garrett and George R. McGeorge, assistant vice presidents, and
W. Wayne Jackson, assistant cashier.

Two Englewood Officers
Robert Frank, president of the
Englewood State Bank, Englewood,
has announced the election of Roland
Muhrer, 42, as vice president in
charge of business development and
Robert L. Casler as vice president in
charge of the bank’s newly-created
real estate loan department.

Seek Academy Bank
Plans for opening a commercial
bank at the U. S. Air Force Academy’s
community center were disclosed last
month with the filing of an application
for a national bank charter with the
regional comptroller of the currency
at Denver.
The proposed bank would be known
as the Academy Exchange National
Bank and would be an affiliate of the
Exchange National Bank of Colorado
N o r t h we s t e r n Banker, De c e mb e r ,
Federal Reserve Bank of St. Louis


New Lovell Building
The First National Bank of Lovell
moved into its new building at the
corner of Nevada Avenue and Third
Street last month. Five days later, to
celebrate the move and the bank’s
nearly 60 years of growth, officials and
employees were hosts at an open

Torrington Bank Gift
President A. C. Conger announced
recently that the First National Bank
of Torrington had donated a valuable
business machine to the Goshen Coun­
ty Community College. The machine
will be used to teach students the
operation of a technical machine used
in many business firms.

Advance Newcastle Officers
Elmer E. Mohl, president of the
First State Bank of Newcastle, has
announced the advancement of three
of the bank’s staff.
Andy Hansen, a veteran of 44 years
in banking and 42 years with the
First State Bank, was advanced from
vice president to senior vice presi­
dent; Robert E. Caudel, cashier, was
named vice president and cashier, and
Don Howell was elevated to the posi­
tion of assistant cashier.
The bank also again sponsored the
4-H Leaders Banquet last month at
Gulleys. Awards were presented to
the 91 volunteer leaders by the Jun­
ior Leaders.

Named Pinedale Director
Donald W. Jewett has been elected
a director of the First National Bank
of Pinedale. Mr. Jewett, a resident
of the area for 51 years, has been a
rancher for the past 35 years and is
president of the Jewett Land and
Livestock Company.

Rawlins Bank Honored
The First National Bank of Rawlins
has received an award honoring its
efforts in promoting the Diamond Ju-

Buy Lamar Bank
Four Lamar businessmen have an­
nounced their purchase of controlling
interest in the Valley State Bank of
Lamar from the corporation which
acquired it from James W. Egan and

bilee Year in Wyoming.
Among the p r o m o t i o n s w h i c h
earned the award for the bank was
an open house birthday party, in con­
junction with the bank’s 75th anniver­
sary, complete with 1890 costumes, a
re-enactment of the delivery of the
bank’s charter and a huge diamond
display piece which was later given to
the state.
(A picture relative to the birthday
celebration was featured on the cover
of the August, 1965, issue of the

orthw estern

B a n k e r .)

Bank Changes Charters
A recent announcement from the
State Bank of Wheatland revealed
that, effective January 1, 1966, the
name of the bank would be changed
to the First National Bank in Wheatland.

New Powell Bank
Construction was scheduled to be­
gin last month on the American Na­
tional Bank’s new $195.000 home in
A total of 240 days has been allowed
for the contractor to complete the
project, which would place the com­
pletion date for the new bank at July
15, 1966.
George Cooke, president, reported
that the new structure will have 5,700
square feet of floor space on the
ground level and will feature a full
basement with a hospitality room
which will seat approximately 125 per­
sons. The new, fully-carpeted bank
will feature a drive-in window and a
separate insurance agency office.

To Gillette Board
E. W. Record has been elected a di­
rector of the Stockmens Bank of Gil­
lette, according to Kenneth C. Naramore, bank president. Mr. Record has


. . .

(Turn to page 76 , please)
his associates in October, 1964.
Mr. Egan was named by a federal
grand jury in the collapse of the
Brighton National Bank.
The four are Leon C. Butler, Phil
Gilbert, John Y. Brown and Terry


This is The Salem National Bank and Trust
Company of Salem, New Jersey

This is
their “office”
New York

M r. George L. Hill
President and
Trust Officer
The Salem National Bank
and Trust Company
Salem, New Jersey

Like many banks o f all sizes. The Salem National Bank and

located, the experience and k now -how o f our staff are al-

Trust C om pany o f Salem, N ew Jersey, has a New Y ork

ways ready to help The Salem N ational Bank and Trust

“ office” through its correspondent relationship with First

C om pany serve its customers. H ow can your bank get these

National City. N ot only in New Y ork but in 43 countries

same benefits? W rite or call our Correspondent Bank D e­

on 5 continents where First National City branches are

partment (212-559-4832) and we will be pleased to visit you.
Federal Reserve Bank of St. Louis

Mem ber Federal Deposit Insurance Corporation

Uptown Headquarters: 399 Park Avenue

Downtown Headquarters: 55 Wail Street
No r t h we s t e r n

Banker, De c e mb e r ,




of tije
tlje ^easion
t *

the opportunity to ex­

press our thanks to our old
and n e w fr ie n d s fo r th e ir
loyalty and good will. W e sin­
cerely hope that we will have
the opportunity to extend our
help toward making the year
ahead a most successful and
prosperous one for you.

i^eagon’g #reetmg£ from...


anb all of pour otljer frirnbs at tlje ©mtcti States National tBanfe
Federal Reserve Bank of St. Louis


Charter Applications
The application of W. W. Joekel of
Lewiston to form the Lewiston State
Bank in that town to replace a cooper­
ative credit association has been de­
nied by State Banking Director Henry
E. Ley.
Mr. Ley held a hearing in Lincoln
last month on another application.
This one was for a state charter made
by Gerald H. TeKolste, of Firth, to
organize the State Bank of Firth. It
would replace the Firth Cooperative
Credit Association. The application
was supported at the hearing by a
Firth businessman who said he was a
spokesman for other business people
in the community.
An objection was filed by letter
from W. R. Judah, president of First
State Bank in neighboring Hickman.
Both towns are in Lancaster County.
Mr. Judah said Firth is adequately
serviced for banking needs by his
bank and those in Panama, Adams,
Martell and Hallam.
Mr. Ley’s decision is expected this

Joins Rising City Bank
John F. Bates has joined the Farm­
ers State Bank of Rising City in an
advisory capacity and has been elected
assistant vice president, according to
H. F. Garhan, president. Mr. Bates
has been a Nebraska banker for many
years. After a number of years of
banking experience, he then served as
a state bank examiner for 24 years.
He resigned in 1955 to join the First
National Bank of Omaha in the corre­
spondent bank department. He re­
tired from that post in 1960 and has
been living in Rising City.

Silver Anniversary
Russell L. Harris, senior vice presi­
dent of the First National Bank in
Holdrege was presented a watch by
L. J. Titus, president, upon the occa­
sion of Mr. Harris’ 25th anniversary
with the bank. The presentation was
made at a staff meeting honoring him
on the occasion.

elected president of the Alliance Ki­
wanis Club for 1966. He will take
office in January.

Open House at Holdrege
Residents of Holdrege and surround­
ing area were invited to open house
at First Security Bank from 10 a.m.
to 4 p.m., December 11. Out of town
guests were entertained at dinner at
the Elks Club in the evening.
President Ralph Misko said the open
house was scheduled to afford the pub­
lic an opportunity to tour the bank’s
new building and modern facilities.
A drive-in addition is a feature of the
new bank building.

Break Ground at


Ground was broken last month for
the construction of the new building
to house the First National Bank in
Atkinson. Turning the first shovel
of dirt was Mrs. Hugh Birmingham,
vice president of the bank, whose
husband, the late Hugh Birmingham,
was president of the bank for many
The new 45 by 75 foot building will
have driftwood stone exterior walls.
Completion date for the project is May
1, 1966. General contractors are Max
Hamik and Roy Ries of Atkinson. Ar­
chitect is Martin Aitken, Lincoln.

Norfolk Expansion
Work on the remodeling project un­
dertaken by the DeLay First National
Bank at Norfolk is progressing on
schedule, according to B. M. DeLay,
president. The building adjacent to
the bank on Main Street has been
taken over and is being remodeled
completely, utilizing only the “ shell”
of the old building.
This portion of the project should
be completed soon, reports Mr. DeLay,
at which time the wall between the
present bank and the new addition
will be opened so both sides can be
used while remodeling of the existing
bank quarters can continue without
interrupting the daily bank routine.

Start O ’Neill Building
Heads Alliance Kiwanis
Don Lichty, vice president of the
Guardian State Bank, Alliance, was
Federal Reserve Bank of St. Louis

Work began early last month on
the new building for the First Nation­
al Bank of O’Neill. John Watson,

president, said the structure will be
one story, about 50 feet wide and 76
feet long, with full basement. A driveup teller window will be installed at
the rear of the building where a park­
ing lot will be hard-surfaced.
The building exterior will have
white precast concrete aggregate con­
crete with black granite base. Char­
coal gray windows will have recessed
lighting for a special night effect. A
time and temperature sign will be
installed on the corner of the new
Interior features will be six teller
stations, two private offices, officer
area, vault, two coupon booths and
bookkeeping area on the main floor.
The building will be on the same
location that the First National has
occupied since it was established in
1884, according to Mr. Watson. He
also announced that Abbott Construc­
tion Company of Salina, Kan., had
been awarded the contract to erect
the building. Architect is Martin Ait­
ken, Lincoln.

On Kimball Advisory Board
Named to the board of the Bank of
Kimball recently were Robert Sherred, George Haines and James Eamon,
all of Kimball.

Buys Oxford Bank
Controlling interest in the Security
State Bank at Oxford has been sold to
Dan Huff, Ord implement and auto
dealer, by J. P. Allen, Jr., president.
Mr. Allen is retiring and he and Mrs.
Allen will spend much of their time
in Bermuda.
Mr. Huff succeeds Mr. Allen as pres­
ident. Other staff members will con­
tinue in their present positions. Mr.
Huff has been associated with Inter­
national Harvester and Oldsmobile
agencies in Ord, as well as an insur­
ance agency there.

Open House at Aurora
The Farmers State Bank at Aurora
held open house Saturday, December
11, so the people of the town and sur­
rounding area could inspect the bank’s
new drive-in facility. W. Ed Coblentz,
president, also announced that Mrs.
Alyda Zehr and Mrs. Ethel Titman
have been promoted to assistant cash­

Joins Norfolk Bank
Kenneth G. Nelson has been elected
cashier of the National Bank of Nor­
folk. He has moved to Norfolk from
Hoyt Lakes, Minn., where he was
cashier of the First National Bank.
Both banks are members of North­
west Bancorporation.
N o r t h w e s t e r n Banker, De c e mb e r , 196 5


Omaha News ?

M O S E R , 70, retired
ters on the football teams of 1914chairman and president of the 1915.
United States National Bank of Oma­ His civic services in Omaha were
ha, suffered a heart attack Thursday legion. He was King of Ak-Sar-Ben
evening, November 25, at the Burling­ in 1956. Another important task was
ton railroad station in Omaha and was serving as chairman of the correlating
pronounced dead and finance committee of the first
on a r r i v a l at Mayor’s Citywide Planning Commit­
Clarkson H o s p i ­ tee, and steering and coordinating
committee member of a succeeding
Mr. Moser had Mayor’s Planning and Development
just r e t u r n e d
Committee. These early committees
from L i n c o l n
are credited with laying the ground­
where he saw the work for much of the business and
University of Ne­ industrial expansion that has accel­
braska f o o t ba l l
erated Omaha’s solid growth in postteam complete its World War II years.
first undefeated
Mr. Moser was a director of the
f o ot b a l l season Omaha Printing Company and the
since he helped do the same feat as Chicago, Burlington and Quincy Rail­
an outstanding center in 1915.
Mr. Moser served with the U. S.
He is survived by Mrs. Moser. The
National organization 32 years. He couple had no children.
joined the staff of United States Trust
Company in 1928 and this was later
absorbed into United States National
The promotion of G ilb e r t .1. M c A l ­
Bank. He was elected executive vice lis te r to vice president of the United
president and director in 1937. In States National Bank of Omaha was
January, 1949, he was advanced to the announced last month by E d w a r d XV.
presidency and served in that position
E y in a n , pr e si ­
for 10 years, moving to the post of
dent. Mr. McAl­
chairman of the board in December,
l ister has been
1959. He retired on August 31, 1960,
affiliated with the
at the age of 65. He continued until
b a n k f o r 38
his death as a director of the bank
and was still a member of the execu­
A native of Cartive committee and directors’ trust
r o l l , I o w a , he
joined the bank
Following his retirement, Mr. Mo­
as a messenger
ser joined Harris, Upham & Compa­
in 1927. He was
ny, Omaha investment firm, as man­
first e l ec te d an
G. j . M cA l l i s t e r
ager of the investment department,
officer in 19 51,
continuing in that capacity until his and later was elected assistant vice
sudden death.
president in 1956. Since that date,
Mr. Moser was a native of Oberlin, Mr. McAllister, who continues as
Kan. He moved to Omaha with his manager of the bookkeeping depart­
family in 1909, and completed school ment, took on greater responsibilities
at Central High where he was all- in bank operations, including a great
state center. He then attended the deal of the work in implementation of
University of Nebraska and was one U. S. National’s electronics and auto­
of the Cornhuskers’ all-time great cen­ mation program.

D o n a ld J. M u r p h y , president of the
South Omaha Stockyards National
Bank, with the assistance of M is s
C r e ig h t o n , this year’s Queen of AkSar-Ben, presented to F . J . C h e d s e y
of Coalmont, Colo., a trophy for the
latter’s exhibit of the Grand Cham­
pion Calves at Omaha’s annual Calf
Show. The calves a v e r a ge d 436
pounds at $48 for a pen of five.
As a service to the livestock indus­
try and to help encourage breeding
of superior cattle, each year’s winner
will receive a replica of the large tro­
phy such as the one held here by
Mr. Chedsey, winner of the show. The



N o r t h w e s t e r n Banker, De c e mb e r ,
Federal Reserve Bank of St. Louis


Donald J. M urphy (rig h t), pres, of South
Omaha Stockyards N a tl., and M iss Creigh­
ton, this year’s Queen of A k-Sar-B en, pre­
sent trophy to F. J. Chedsey.

large trophy will be on display in the
lobby of the bank and will have each
year’s winner’s name engraved on it.
* * *
G r e g o r y A l b e r t W h i t e , 52, became a
four-time loser for committing major
crimes when he was sentenced No­
vember 19 to 15 years in a Federal
penitentiary for armed robbery of the
First National Bank of Omaha.
The robbery was committed by the
Chicago itinerant on Monday, Novem­
ber 15, when he thrust a gun at a wom­
an teller in the bank and demanded
the cash. He made off with $18,000,
but when he was arrested a few hours
later he had only $5,000 on him. He
told the Federal District Court judge
that he threw the other $13,000 away
while being chased, but he couldn’t
remember where.
A bonding firm reimbursed the First
National for its loss.
The prisoner said he has served six
years in Illinois and 12 years in Lou­
isiana for armed robbery and 22
months in Colorado for burglary. The
sentence imposed by the judge per-
Federal Reserve Bank of St. Louis


N e b ra sk a


mits him to become eligible for parole
before he has served five years.
* * *
R o b e r t D. H a m ilt o n has been pro­
moted from manager of the planning
department to assistant cashier of the
Omaha branch of the Federal Reserve
Bank of Kansas City. Mr. Hamilton



succeeds Dan S. Spencer, Jr., who was
elected cashier of the Denver branch
of the Fed bank. In that post he
replaces H a r v e y L . S t e m p e l, who re­
tired at Denver, November 30.
* * *
H a l F . C h ild s , vice president of
Chiles and Company, Omaha invest­
ment firm, has been elected secretary
and director in addition to his former
duties. Mr. Childs has been with the
firm six years and is widely known
among Nebraskans. He has been a
specialist in municipal bonds for many
* * *
At the Ames Plaza Bank, J a m e s L .
B r u m fie ld has been elected assistant
cashier in the installment loan depart­
ment and R o b e r t J a c o b s o n has been
elected assistant cashier and auditor.

Worth western Banker, D e c e m b e r, 1965
Federal Reserve Bank of St. Louis

Mr. Brumfield formerly was with the
Sidney National Bank at Sidney, Neb.
Both banks are owned by the Brodkey family of Omaha. Mr. Jacobson
previously was with the state bank­
ing department in Lincoln.
* * *
J. Clift' R a h e l a n d C o m p a n y , Omaha
investment firm, moved last month
from First National Bank building to
1605 Howard Street to a ground floor
location in the corner of the Aquila
Court building. C liff R . R a h e l, presi­
dent, said the move affords the firm
more room to accommodate a growing
volume of business.
New lines and other services have
been installed. The firm has branch
offices in Lincoln, Council Bluffs and
Sioux City.
Mr. Rahel also has announced that
J o h n J. B o h r e r has joined the firm as
senior vice president. Previously, Mr.
Bohrer was vice president and secre­
tary of Chiles and Company.
* * *
The First National Bank of Omaha
has announced that March 24 has
been selected as the date for its first
annual “Chuck Wagon Roundup,” to
be held at the Ak-Sar-Ben sales pavil­
ion. The event was first announced
at the bank’s recent Conference for
Correspondent Banks by D o n R . O st r a n d , vice president in charge of the
correspondent bank department.
* ♦ *
Two Omaha bankers have been
elected to the Omaha Chamber of Com­
merce board of directors. K e r m i t R.
H a n s e n , vice president of the United
States National Bank, was one of two

men elected to take office immediately
filling vacancies on the board. F . P h il­
lip s G iltn e r , executive vice president
of The First National Bank, was one
of nine men elected to take office Jan­
uary 1 for three-year terms of service
on the board.
* * *
Officials of the Southwest Bank of
Omaha celebrated the bank’s fourth
birthday on December 4 by holding a
grand opening of the bank’s new build­
ing at 88th and Center Streets. It was
located formerly two blocks further
west at 90th Street. P e r r y F r a n c is ,
president, said two lots north of the
new building also were purchased by
the bank for future expansion.
The one-story building features ex­
tensive use of glass. It has a base­
ment bookeeping room. A drive-up
teller window also is in use.
Mr. Francis said the move was nec­
essary because the bank has grown
about twice as well as had been hoped
for, and now has assets of $9,400,000.
E u g e n e J . Z a lo u d e k is vice president
and cashier, and D o n V . N e w b e r g is
assistant vice president.

Assumes NABW Office
Mrs. Amy Reiss, cashier of the
Bruning State Bank at Bruning, for­
mally assumed her office as president
of the Nebraska group of the National
Association of Bank Women at the
recent NABW national convention.
Mrs. Reiss had been elected to the
office earlier at the Nebraska meeting
which was reported previously in the
N o r t h w e s t e r n B a n k e r . The Nebraska
group had 12 women bank officers
present for the national meeting.



Start St. Paul Work
The St. Paul National Bank at St.
Paul, Neb., has let contracts for its
new building to Mid Plains Construc­
tion Company, Grand Island, for gen­
eral contract work and to Preisendorf
Plumbing, Grand Island, for all the
plumbing work.
Work began immediately after con­
tract signing early last month and
completion is expected by June 1,
1966. The new building will feature
drive-in banking and off-street park­



Ag Man at Kearney Bank
Keith A. King has been appointed
to the agricultural loan division of the
Platte Valley State Bank, according
to Wayne R. McKinney, executive vice
president. Mr. King engages in gen­
eral farming, hog finishing and cattle
feeding through the Lazy K-4 Angus
Cattle Company.




What does a Correspondent Banker know about Ag Chemicals?
Ask Bob Brown, Asst. Vice President.

After you talk with Bob Brown, you’ll discover there’s little he
doesn't know about Chemical Farming.
Twenty years as the Executive Head of one of the Midwest’s
leading chemical producers has given him the kind of know­
how you’ll appreciate. And years in the field acquainting himself
first-hand with people and communities like yours, makes Bob
the kind of correspondent banker whose farm knowledge you
can put to good use. Bob Brown talks your language; both as a
Banker and as a Chemical Farming expert.
The next time you have a problem, call the First. (Area Code
402, 341-0500.) Talk with any of the experienced correspondent
bank officers. Or ask for Bob Brown. See what a Banker knows
about Ag Chemicals.
Federal Reserve Bank of St. Louis


Member Federal Deposit Insurance Corporation

Always the First to Serve You.
N orth w estern

B anker.

D ecem ber,



N e b ra sk a

N ext



Y e a rs 4 »iteti f e r C a ttle

BRIEF analysis of “The Cattle per cent over the total for a like pe­
Situation” appearing in the No­ riod in 1964. This increase should
vember issue of Corral, publishedtend to hold weights down so that
monthly for its correspondent banks there should be no “weighty” supply
by The Omaha National Bank, Omaha, of beef during the next few months.
provides interesting reading for all These two factors, together with a 12
midwest bankers. This report, pre­ per cent decrease in this year’s pork
pared by The Omaha National staff, supply, lead many operators to expect
a substantial advance in fat cattle
“During the past several years, the prices sometime during the next sev­
total numbers of cattle in the United en or eight months. In general, the
next two years should be good ones
States have i nc re a se d annually.
Enough cattle will have been slaugh­ for the industry.
“The building of additional packing
tered during 1965 so that by this year
end the numbers will probably be plants throughout the country is con­
down as much as 1,500,000 head. Last tinuing in spite of the anticipated re­
year, cattle numbers totaled 106,915,- duction in numbers of cattle during
000 head, and by the end of 1965 the 1966 and 1967. The pressures created
numbers are expected to be approxi­ by these additional plants could bring
about an increase in packer cattle
mately 105,415,000 head.
“For the year to date, cow slaughter
is considerably ahead of that of a year
ago. During the June-September pe­ Scottsbluff Bank Opens
Permission to commence operations
riod cow slaughter was up 31 per cent,
and in October it increased 7 to 8 per of the newly-chartered Western Na­
cent. For the first time in many years, tional Bank of Scottsbluff was granted
beef calf crop prospects for the year recently by the Comptroller of the
ahead are downward rather than up­ Currency. It opened for business at
ward. If imports are not increased 27th Street and Avenue C in the city.
and if slaughter of cattle during 1966
President is H. I). Kosman, who is
is down 1 per cent from that of 1965, also president of Scottsbluff National
the cattle numbers may be reduced to Bank. Managing officer is Jack Sel104,355,000 by January 1, 1967.
zer, executive vice president. Gary
“As of this writing, cattle continue Hall is assistant vice president and
to move to market at lighter weights cashier. Mr. Selzer has been with
than they did last year. Indications Scottsbluff National four and one-half
are that the numbers of fed cattle be­ years and has been assistant vice pres­
ing marketed during the October-De- ident and assistant trust officer there.
cember period will increase about 6.1 Mr. Hall, who was with Scottsbluff'


National for five years previously, left
there to be vice president and cashier
of the Farmers State Bank at Lyman,
another bank affiliated with Scottsbluff
National. He served three years at
Lyman before joining the new West­
ern National.
Grand opening for the bank is
planned for this month. The build­
ing has 1,500 square feet of space and
basement. A drive-up window has
been provided in addition to other
modern banking services.

6 0 al NABAC Meeting
The C o r n h u s k e r Conference of
NABAC met last month in Wahoo to
hear Robert Guenzel, Lincoln attor­
ney, discuss “The Uniform Commer­
cial Code. There were 60 men from
banks in South Central Nebraska at
the meeting. Officers of the chapter
are: Merl.yn H. Hinderman, cashier of
Gateway Bank, Lincoln, president; K.
N. Barnard, cashier of Farmers &
Merchants Bank, Milligan, secretary,
and Ray J. Fiala, cashier of First Na­
tional, Wahoo, treasurer.

Plan Opening at Elkhorn
The Bank of Elkhorn has moved
into its new quarters and E. L. Peter­
son, executive vice president, an­
nounced that open house for the pub­
lic was planned for some time in De­
cember after all interior furnishings
are in place. Shortly before moving
into the new building the bank was
held up by a lone gunman, who made
off with $8,300.

Retires at Schuyler


. .

an d


N ew

Y e a r!"

Edwin Van Horne

John Van Horne

Fred M. Mundil retired last month
as vice president of Farmers & Mer­
chants Bank at Schuyler. He joined
the bank in 1905 when it was located
at Linwood. It was moved to Schuy­
ler in 1952.
Mr. Mundil was cashier of the bank
until 1945, then served as president
for the next 10 years. In 1955 he be­
came vice president, the position he
held until his retirement.
Harold Qualsett, president of Farm­
ers & Merchants Bank, last month
announced that Paul Johnston will
join the bank December 31 as agri­
cultural representative. Mr. Johnston
had been Colfax County Extension
Agent since 1959.




P H O N E 345-2241

Over 70 years of banking and investment experience
Northwestern Banker, December, 1965
Federal Reserve Bank of St. Louis



Season’s Greetings From Your Capital City Correspondent
Federal Reserve Bank of St. Louis



L IN C O L N . N E B R A S K A


Banker, D e c e m b e r , 7965


James H. Pollock
A fishing trip by three friends
ended in tragedy last month when
James H. Pollock, 37, executive vice
president of the Farmers National
Bank at Pilger, and Dr. A. V. Brunke,
52, Plainview veterinarian, were de­
clared by the coroner to have died
from accidental drowning. Lone sur­
vivor of the boating accident, which
occurred on the Missouri River near
Niobrara, was Eldon Fox, 43, execu­
tive vice president of the Plainview
National Bank.
After the boat swamped, Mr. Fox
was washed up on a sandbar where
he was found the next morning suf­
fering from exhaustion.
Mr. Pollock also was vice president
of the Plainview National Bank.

Joseph M. Rogers
Joseph M. Rogers, 70, who had been
with the Schuyler State Bank in
Schuyler for 52 years until his retire­
ment last January 1, died last month.
He was vice president at the time of
his retirement. Mr. Rogers also had
served as U. S. weather observer for
45 years.

bank sponsored this clinic in hopes
that it will focus attention on the im­
portance of productive pastures.”
The program speakers then pro­
ceeded to carry out this hope. Mas­
ter of ceremonies Dr. Dale Dlowerday,
extension agronomist, also led a panel
discussion that included audience par­
ticipation in a question and answer
period. Dr. Elvin F. Frolik, dean of
the College of Agriculture and Home
Economics at the University of Ne­
braska, spoke on the subject, “Col­
lege of Agriculture at Our Doorstep.”
Jim Wilson, a Polk farmer who is a
strong advocate of native pastures,
discussed, “Past ur e L e g um e s and
“Renovation of Unproductive Pas­
tures” was the topic selected by Dr.
Don Burzlaff, associate professor of
agronomy on the University of Ne­
braska s+aff.
Dr. Walter R. Woods, professor of
animal science at the university, had
as his subject, “Growing Cattle on
A luncheon was served by the bank
following conclusion of the evening

president; Walker Groetzinger to sec­
retary; and James J. Mock elected an
assistant secretary.
H. John Badenhoop, in charge of
the property personal lines depart­
ment, was made a secretary.
Just recently, following the retire­
ment of Charles Taylor, Ralph Clark,
formerly a secretary in charge of
bond underwriting, was named to
head the bond department. He has
been with The St. Paul in its bond
department since 1931.

Protect Credit Card Holders
American Express Company has an­
nounced that its more than 1,500,000
Credit Card Members are now pro­
tected by unlimited liability coverage
against loss of the card, with a $100
deductible provision, at no additional
cost to the cardholders.

As part of its 75th anniversary year,
The First National Bank of Belden
sponsored a Pasture Clinic last month
that was attended by nearly 400 per­
sons from northeast Nebraska. Presi­
dent G. E. Barks told those in attend­
ance, “We in agriculture have im­
proved our crops, but our pasture
land remains ‘forgotten areas.’ The



Four officers were promoted and
one new officer elected by the direc­
tors of The St. Paul Fire and Marine
Insurance Company, President Ron­
ald M. Hubbs announced in St. Paul.
Advanced to vice president was
Denver W. Swanson, head of the agen­
cy division.
In the bond department Ralph B.
Clark was promoted to assistant vice

so do we.

From our new and larger headquarters at 1605 Howard Street we're able to give
you the same personal service you've come to expect from us. If anything, service
is even faster thanks to our all new high-speed open communication line between
Omaha and Chicago with relays to all sections of the country. The "Telequote ¡11"
computer guarantees the most accurate information on all listed and unlisted stock
quotations in a matter of seconds. W e’d like you to see our new facilities on the
ground floor of the Aquila Court. You'll find them modern, comfortable and


(Continued from page 66)
been employed by the bank for the
past two and one-half years and is a
former prominent Gillette business­
man and Campbell county rancher.

St. Paul F & M Promotions
Sponsors Pasture Clinic



Special Meeting Called
Robert L. Ferril, president of the
Wyoming Bankers Association, last
month called a joint meeting of the
executive council and the legislative
committee in Casper to review prog­
ress made in the various W.B.A. pro­
grams initiated at the state conven­
tion and to discuss the feasibility of
possible revision of the State Bank­
ing Code.
Soon after the convention, a com­
mittee from the association met with
the governor and the state examiner
to discuss the problems involved in
the branching of Savings and Loan
Associations. A member of the S&L
League requested to be heard at the
meeting and presented the case for
the savings and loan associations.
Resolutions passed by the member­
ship at the W.B.A. convention have
been presented to the governor and
the state examiner. Further steps to
be taken were discussed at the special
meeting in Casper.


• j-


Credit Conference Success

Members, Midwest Stock Exchange
1605 Harney Street, Omaha, Nebraska
N o r t h w e s t e r n Banke r, D e c e m b e r , 1965
Federal Reserve Bank of St. Louis

The Second Annual I ns t a l l m e n t
Credit Conference held recently in
Casper was hailed by those in attend­
ance as an excellent meeting. In­
creased interest in the program was
reflected by the fact that approximate­
ly 30 bankers took advantage of the

Federal Reserve Bank of St. Louis


To you, whom we have had the privilege of serving . . . and to
those of you whom we hope to serve in the future . . . we
at the South Omaha Stockyards National Bank
send all good wishes for the holiday
season and for a happy and
prosperous new year.

Member, Federal Deposit Insurance Corporation
Northw estern

Banker, D e c e m b e r , 1965

N NOVEMBER, 1961, the Farmers
State Bank in Elkhorn, Neb., con­
ducted its first direct verification
audit with the assistance of a firm of
Certified Public Accountants. The
bank’s officers learned a great deal in
the process, including the fact that
customers were appreciative of the
Elkhorn, situated near Omaha, in
the middle of the cattle feeding belt,
has a bank which serves its cattlefeeder customers to the extent of ap­
proximately $1.1 million in loans on
its own books and an additional $800,000 in overlines. Farmers State has
deposits of approximately $2.4 mil­
lion. Its name has just been changed
to Bank of Elkhorn.
According to Elmer L. Peterson, ex­
ecutive vice president of the bank,
“ The bulk of the loans are to cattle
feeders and, as a result, are necessar­
ily large loans to each borrower.” It
was this fact, he relates, which first
sparked the idea for a “good audit”
conducted apart from the bank and
the bank’s board of directors.



E x t e r n a l A u d it

W. E. Moor, president of the bank,
and Mr. Peterson felt that, although
they could well have conducted such
an audit themselves, it would not,
under such an internal arrangement,
“accomplish the end the state and
federal authorities are now looking
for”—an external, unbiased and com­
plete audit which would give a true
picture of the bank’s position.
The Hanson Audit Company of Fre­
mont, Neb., headed by James Hanson,
was called in to make the necessary
“The board of directors had felt for
many years that an independent audit
by outside auditors would be desirable
from the point of view of prudent
banking, but the matter had never
gone past the ‘talk about’ stage,” Mr.
Peterson relates.
He recalls that the direct verifica­
tion aspect had also been discussed by
the board. “ It was subsequently de­
cided that this would be the only feas­
ible manner in which a true audit
could be accomplished,” he says.
C overage and

C o st

Mr. Hanson and President Moor dis­
cussed the procedures to be followed
in the proposed audit, with emphasis
upon the cost to the bank.
It was decided, within the frame­
work of the budget proposed for the
project, that a spot check of 30 per
cent of all the commercial loans, in­
stallment loans, individual demand
deposits, time deposits and savings
and all accounts of over $30,000 would
be audited by means of direct verifica­
tion procedures.
w e s t e r n Banker, D e c e m b e r, J965
DigitizedN for
Federal Reserve Bank of St. Louis

tieiiinq the "d u m p "
On D irect 1Verification
This was to be accomplished by the
auditors coming at an unannounced
time, counting the vault and counter
cash and listing all the books, such as
the examiners do. However, the audi­
tors would then choose the accounts,
according to the percentages sug­
gested, and ask that they be cut off
and given to the auditors to be mailed
directly to the corresponding custom­
ers. The results of the customers’
investigations were to be mailed di­
rectly to the auditors in enclosed,
addressed envelopes.
Mr. Peterson had prepared a letter
in advance which explained the pur­
pose of the audit and which contained
the request for information. Correc­
tions were to be noted by recipients
and were mailed to the auditors. It
was requested that all queries, wheth­
er corrected or not, be returned to
the auditors.
The income accounts were also
checked to see whether the correct
amounts had been collected and to see
that the proper distribution had been
made of collections. Discrepancies
were called to the attention of the
managing officer and the checks were
examined on the bank’s microfilm and
comparisons were made with book en­
C u s t o m e r P r o file m s

“Of course, there were some ques­
tions by our customers,” Mr. Peterson
says, “but they seemed to understand
what was going on.”
The one problem which did arise,
due to customers’ misunderstanding,
came in the form of borrowers and
depositors checking note balances and
bank balances directly with the bank.
“ If this had been done in volume,”
Mr. Peterson asserts, “the audit could,
of course, break down completely.”
However, those who entered the
bank to make direct checks were a
very small minority, Mr. Peterson
says, and mention was made of the
situation only as a matter of interest.
The response from bank customers
was more than satisfactory by virtu­
ally any standard. Approximately 90

per cent of the queries mailed were
returned to the auditors.
Started in November, 1961, the au­
dit covered the period from January
1, 1961 through November 21 of the
same year.
“There were no adverse comments
from any of our customers,” Mr. Pet­
erson reports. “As a matter of fact,
the bank was commended at many
points for its action. Customers felt
it was protection for themselves as
depositors,” he says.

V ery


S tr id e

“While direct verification may not
be the whole answer to proper bank
audits, it was felt by our board that
it represents a stride—-a very long
stride—in the proper direction,” ac­
cording to the executive vice presi­
dent of Farmers State.
The cost, to a bank of relative size,
varies from $1,000 to $1,500 for such a
direct audit, according to Mr. Peter­
son, depending upon what is required
of the auditors.
Subsequent study of the situation
left the Farmers State board with the
impression that the auditors could
more effectively “take up where the
examiners left off.” It was felt that
the money was well spent when con­
sideration was given to the adverse
publicity received by the banking in­
dustry in recent years. It was also
felt that, for a bank the size of Farm­
ers State, it was more economical to
hire outside auditors rather than to
hire a full-time auditor for the bank.
Future audits will be refined, par­
ticularly in the area of what is to be
accomplished by the auditors, and

. . .

(Turn to page 80, please)

Wonderful relief
for many of our
bank customers
with serious
financial p roblem s^}
President, First State Bank,
Beaver City, Nebraska

T h is \
m an
k w ill
1« w ork
'> for
fo r
n oth in g !
(...even pay you!)

“ My experience with United American Life’s new ‘Worth Preserver’ Plan has been so much relief
to many of our depositors who had some serious financial problems. Excellent training enables United American spe­
cialists to work hand in hand with us, providing our institution with a really valuable service.’’ Practical Midwestern
bankers like G eorge Shafer know that a service is only as g o o d as the people who must make it w ork. A nd M r. Shafer
knows that the United A m erican ‘ W orth Preserver’ Plan works well for his bank! It can for yours, t o o . . . offering
an entirely new and helpful financial tool to depositors, while at the same time creating a significant new source o f
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rienced bank plan specialists. Write or wire Mr. W . W . W ilson, Jr., or call collect now : (A re a C ode 3 0 3 ) 8 2 5 -1 3 3 1 .

For more than 25 years, our company has pursued an
aggressive, enthusiastic course, resulting in a rapid
but sound development pattern. Growth in assets,
insurance in force (currently over $300-mill!ion) and
net interest earnings exceed the 5-year average of
the nation’s 15 largest life insurance companies.
United American is one of only 300 legal reserve
companies selected for rating by Best’s Life Insur­
ance Reports from among some 1700 companies.
Federal Reserve Bank of St. Louis

Faith In Your Future

Life Insurance Company
W. W. Wilson, jr.. President
Now in 3 Î States

1717 C a lifo rn ia Sf.

D enver, Colorado
N o r t h w e s t e r n Banker, D e c e m b e r , 1965


Floyd A, Hansen
Funeral services were held in Hast­
ings last month for Floyd A. Hansen,
67, president of the City National
Bank of Hastings.
A native of Mapleton, Iowa, Mr.
Hansen first started in banking as
bookkeeper with Farmers State Bank
in Brush, Colo. In 1914 he helped
organize City National in Hastings,
becoming cashier at that time. In
later years he served as executive vice
president, then was president from
January, 1960, until his death.
Surviving are Mrs. Hansen and two
sons, Donald Hansen, president of Se­
curity National Bank in Superior,
Neb., and Robert Hansen, president
of First National Bank in Wray, Colo.

Offi cer Changes at Lyman
Carroll Couch has been elected vice
president and managing officer of the
Farmers State Bank at Lyman. Jerry
R. Wharton has been advanced from
assistant cashier to cashier. They
succeed G. W. Hall, who was vice
president and cashier. Mr. Hall has
moved to Scottsbluff to be cashier of
the new Western National Bank. H.
D. Kosman is president of both banks.

Retires From Security First
Arthur M. Gaines, vice president of
Security First National Bank’s head
office banking department in Los An­
geles, retires at the end of this month
to conclude a banking career of more
than 44 years.
The veteran bank official started in
banking as a messenger in 1921. In
the years that followed he managed
the transit and collections depart­
ments and was appointed assistant
vice president in 1948. He was elected
vice president in 1952 and in 1960
helped merge the bank’s Fifth and
Spring and Sixth and Spring offices
into what is now Security’s head of­
fice banking department, Los Angeles.
Mr. Gaines was born in Newport,
Neb., and moved to Los Angeles in
1919. He graduated from Loyola High

A t T ru st M e e t in g

G R E E T IN G — Undersecretary
Treasury Frederick L . D em ing (right) is
greeted before addressing the 34th M idContinent Trust Conference in St. Louis,
last month by Hugh, A . Logan ( le f t ) , con­
ference chairman, and vice president and
secretary, S t. Louis Union Trust Com­
pany, St. Louis, and W illiam A . M cD on­
nell, chairman o f the finance committee,
St. Louis-San Francisco R ailw ay Company,
who introduced the speaker.

School and attended Loyola Univer­
sity and Creighton University in Oma­
ha, Neb. He furthered his banking
education by attending AIB, receiv­
ing a standard certificate.

Chase Plans Purchase
o f Diners Cluh, Inc.
Directors of Chase, Manhattan Bank
NA and Diners’ Club, Inc., last month
approved “a memorandum of inten­
tion” under which the bank would
purchase all the credit card firm’s
stock at $33.50 a share—a $56.5 million
For the 1,685,731 shares of Diners’
Club stock, Chase agreed in a memo­
randum to pay the total cash price of
approximately $56.5 million, a bank
spokesman said.

Heads Mortgage Bankers
Ewart W. Goodwin, president, Percy
H. Goodwin Company, San Diego,
Calif., was elected president of the
Mortgage Bankers A s s o c i a t i o n of
America at the third general session
of the Association’s 52nd annual con­
vention held in Chicago. He succeeds
C. C. Cameron, president, CameronBrown Company, Raleigh, N. C., as
head of the 2,000-member association.

Bankers are Select Risks and we have special coverage
designed for Bank Men and Women. Write for Application
and Information.

M innesota Com m ercial M en’s Association

2550 Pillsbury Ave. S.

N o r t h w e s t e r n Banke r, D e c e m b e r , J965
Federal Reserve Bank of St. Louis

Minneapolis 4, Minnesota

Vote Stock Dividend
National Bouelvard Bank of Chica­
go shareholders have ratified a pro­
posal authorizing a 25 per cent stock
dividend through the issuance of 25,000 additional shares and the transfer
of $500,000 from undivided profits to
the capital stock account. This action
is subject to approval of the Comp­
troller of the Currency.
President Irving Seaman, Jr., ex­
plained that upon distribution of the
dividend, the bank will have capital
and surplus totaling $8,000,000.

Predict Record Earnings
Ray R. Eppert, president, Bur­
roughs Corporation, said recently that
“ 1965 after tax profits will be at least
50 per cent greater than last year,”
amending an earlier prediction that
earnings would be 40 per cent ahead
of 1964.
“Net earnings will be in excess of
$15 million and will exceed by a sub­
stantial margin any previous profit
record in the Corporation’s long his­
tory,” he said.

(Continued from page 78)
costs, it is expected, will be corre­
spondingly trimmed. It was also de­
termined that more should be asked
of the auditors in regard to checking
of stocks and cash values of collateral
held as security for some credit.
In addition, “verification of vault
and counter cash, along with listing
of bank books, may be an unnecessary
chore for the auditors, as this is done
by examiners,” Mr. Peterson says.
The time spent in such activity may
be better spent in checking a higher
percentage of accounts by means of
direct verification, he suggests.



Long W ay to Go

“We realize that we have a long
way to go as far as audits are conerned,” Mr. Peterson notes, “particu­
larly in the area of economical proce­
dures which will make such audits
feasible for more banks. It is just a
matter of time before many unneces­
sary items can be safely left out of
the audit. The threat of an audit is
really quite a deterrent to defalcation
and probably serves that purpose ef­
fectively,” Mr. Peterson suggests.
In conclusion, Mr. Peterson says
that it is the bank’s feeling that an
outside audit with direct verification
is worth the cost and serves the needs
of prudent bankers. “We plan to con­
tinue this method until we discover
a more efficient method or until some­
one comes up with a better idea,” he
says.— E n d .





S. T ru s t Company of Lincoln
Federal Reserve Bank of St. Louis

I2th & N Street —Lincoln, Nebraska

Member: F.D.I.C.
Northw estern

Banker, D e c e m b e r , 7965


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for FRASER Banker, D e c e m b e r, 7965
Federal Reserve Bank of St. Louis

S '/ t f ï / m a . i
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Tuesday and Wednesday, December 7
and 8, in Des Moines. Ervin J. Burrack, Arlington, is president of the

Io w a





Insurance Organizer

Council Bluffs


Des Moines

DeWitt Bank Application
A group of five persons last month
applied for a charter to form a new
state bank at DeWitt. The organizers
are Ted George, Rex Peters, E. \
Ellingsen, Everett Rogers and John
R. Crowley.
Mr. Crowley recently resigned as
assistant cashier at DeWitt Bank &
Trust, where he had been employed
for 15 years.

month, has urged support of a bill in
Congress prohibiting banks from offer­
ing professional accounting services.
A resolution adopted at the group’s
convention objected to banks perform­
ing “clerical, administrative, book­
keeping, statistical, accounting and
other similar services.”

Christmas Clubs

Official opening of the new drive-in
facility of Mt. Pleasant Bank and
Trust was held recently.

Clear Lake Bank and Trust Com­
pany, Clear Lake, reports that Christ­
mas Club checks at the bank totaled
more than $10,000. City State Bank,
Ogden, reported checks totaling $11,000 were mailed last month.

Joins Mason City Bank

Plan Fort Dodge Building

John M. Powell, Clear Lake attor­
ney, has been elected vice president
and trust officer of the First National
Bank, Mason City.
Mr. Powell, who will continue to
make his home in Clear Lake, for the
past nine years has been a partner in
the law firm of Sondrol and Powell.
He first began the practice of law in
1938 when he was associated with
Bourke B. Hickenlooper. Following
World War II, he practiced law in
Tipton until 1956 when he joined
Thorkel Sondrol, Jr. in the Clear Lake
law partnership.
He is a past director of the Com­
munity National Bank in Clear Lake.

New banking facilities, featuring a
TV motor bank, will be constructed by
The State Bank, Fort Dodge. Con­
tracts have been awarded, work on the
site is underway and completion is
anticipated by September, 1966.
An added feature will be a 46-foot
pylon tower bearing a large, illumi­
nated weather ball.

Mt. Pleasant Drive-In

Pancakes for 86th Birthday
Approximately 600 persons were
served pancakes at the First State
Bank, Diagonal, last month in honor
of the 86th birthday of J. I. Roberts,
chairman of the board. Mr. Roberts,
who had been confined to his home
prior to the event, went to the bank
during the afternoon where he greeted
guests in attendance.

Trust Powers Approved
Application for consent to exercise
trust powers have been approved by
the F.D.I.C. for the Iowa State Savings
Bank, Clinton.


Feeders Meeting

The 1965 convention and business
meeting of the Iowa Livestock Feed­
ers Association was scheduled for

Accountants Ask Ban
The Accountants Association of
Iowa, meeting in Des Moines last
Federal Reserve Bank of St. Louis

Peter Huendling
Peter Huendling, 78, a director of
the Breda Savings Bank, died recently
in a Sioux City hospital where he had
been a patient for approximately one
week following a stroke.

To Davenport Bank
Gerald R. Waters, 31, formerly asso­
ciated with Burroughs Corporation,
has accepted a newly-created post in
the correspondent division of Daven­
port Bank & Trust Company.
His duties will revolve around a
newly-installed computer system and
its automated service to the bank’s

Fort Dodge Trailer
A trailer bank service was opened
recently by the First National Bank,
Fort Dodge, according to Earl J.
Underbrink, president. The trailer is
located at an intersection near the
entrance to the Crossroads Shopping
Center. The trailer will be used until
the new First National Plaza building
is completed approximately a year
from now.

Plan Fairfield Drive-In
Fairfield’s first drive-in bank facility
will be completed and open to the
public by mid-summer, 1966, according
to officials of the Iowa State Bank and
Trust Company there.
Three residential buildings must be
removed to make room for the im­
provement, according to Ralph Eastburn, president of the bank.

Change Office Address
The Des Moines office address of the
St. Paul Terminal Warehouse Com­
pany has been changed to Room 617620, Empire Building, West 6th and
Walnut streets, Des Moines.

Sam B. McHose, president of the
Nevada National Bank, Nevada, is one
of several organizers of the Iowa
Surety Company, Des Moines, incor­
porated last summer as a casualty in­
surance company for underwriting
fidelity and surety bonds in Iowa. The
firm is offering 320,000 shares of its
stock to Iowans at $3 per share to
raise $864,000 in new funds after pay­
ment of commissions.

Approve Stock Dividend
a.v.p., Chase Manhattan,
holds scissors he used to cut the ribbon
officially opening the new home of Citizens
Savings Bank, Anamosa. Also on hand
for the ceremony were Anamosa Mayor
H enry Furino (center) and E. J. Buresh
(right), pres., Citizens Savings. Mr. Hejinian’s father, Dr. A. G. Hejinian, was
formerly a president of the bank.
John H ejinian,

First Bank of Brighton stockholders
have taken action making possible a
one-for-five stock dividend. Stock­
holders will receive one new share for
each five held and the total outstand­
ing will be raised to 12,000 from 10,000
N o r t h w e s t e r n Banker, D e c e m b e r , 1965


Io w a


S p e n c e r i'tte ilily


'o n ip le ta l

Dallas Center Forum
Dr. Neil Harl, associate professor of
economics at Iowa State University,
Ames, and an attorney, discussed wills
and estate planning at a forum spon­
sored last month by the Brenton State
Bank, Dallas Center.

John B. Simon

P A R K I N G L O T O F F IC E recently opened by the Clay County National Bank, Spencer,
was designed and constructed by LeFebure Corp., Cedar Rapids.

To Solon Bank
Donald Erusha, executive vice pres­
ident of the Chelsea Savings Bank,
has transferred to Solon State Bank,
where he has become active in the
management of that institution. Mr.
Erusha and his father, M. C. Erusha,
have interests in both banks.

To Chelsea Bank
William J. Beohm has been named
vice president of the Chelsea Savings
Bank, succeeding Donald Erusha, who
recently moved to the Solon State
Bank. Mr. Beohm had been cashier
of the Citizens State Bank, Hopkinton,
in the bank’s Ryan office.

homemaking projects. Winners of the
trip are chosen by a special county­
wide committee.

Honor Area Farmers
The Crawford County Bankers Asso­
ciation last month sponsored a dinner
meeting at which the group honored
four Crawford county farmers for
their terrace building activities during
1965. Savings bonds were awarded to
the four winners for their achieve­

Joins Land Bank

Hollyce L. Loop has been named
cashier of the Citizens State Bank,
Hopkinton, s u c c e e d i n g William J.
Boehm, who became vice president of
the Chelsea Savings Bank, Chelsea.

The resignation of Jon G. Billhorn
as assistant cashier of the Farmers
and Merchants Savings Bank, Man­
chester, was accepted, “with regret,”
by the bank’s board of directors last
Mr. Billhorn, associated with the
bank since his graduation from Iowa
State University in 1960, has joined
the Federal Land Bank as a fielclman.

Storm Lake Display

Install Drive-In

Named Bank Cashier

A total of nearly 100 entries was
made in last month’s annual art dis­
play at the Commercial Trust & Sav­
ings Bank, Storm Lake. The display
included paintings, drawings and cera­
mic articles.

The Farmers Savings Bank, Bea­
man, has installed an auto drive-in
window. Work on the driveway was
nearly completed last month and
officials hoped to open the window for
business shortly, weather permitting.

Mrs. Geiger Owes $ 1 8 3 ,0 0 0

Special Code Session

Mrs. Burnice I. Geiger owes the gov­
ernment $183,732 in taxes on a portion
of the $2 million she emblezzled from
the Sheldon National Bank, according
to a recent U. S. Court of Appeals rul­

Union Bank and Trust Company,
Ottumwa, sponsored a special session
on the Uniform Commercial Code for
approximately 100 bankers in south­
west Iowa December 8. The meeting
began with a social hour and dinner
and ended with presentations by two
speakers concerning the Code.

Name Trip Winners
Four youths were named by Lyon
County State Bank, Rock Rapids, as
winners of the bank’s 14th annual In­
ternational Livestock show trip last
month. Winners of the trips each year
are those who have been outstanding
in various livestock, poultry and
t h w e s t e r n Banke r, D e c e m b e r, 1965
Digitized N
foro rFRASER
Federal Reserve Bank of St. Louis

To Cherokee Bank
Don Peterson, 40, formerly asso­
ciated with Valley Finance Company,
LeMars, has been named as an addi­
tion to the staff of Central Trust and
Savings Bank in Cherokee.

John B. Simon, 82, Farley, died
recently in Dubuque following a short
illness. Mr. Simon was vice president
of the Farley State Bank for the past
10 years and served on the bank’s
board of directors for 25 years. He
had been associated with the bank for
50 years.

New Monticello Building
The Monticello State Bank last
month sponsored a ground-breaking
celebration in conjunction with the
beginning of construction for the new
Schultz Brothers store in Monticello.
The bank is the owner of the new

New Winthrop Bank
Peoples State Bank, Winthrop, will
construct a new bank building to be
completed July 1, 1966, according to
Ted James, cashier. The site will be
determined at a later date.

Bank Open House
Open house was held last month by
officers and directors of the Peoples
Trust and Savings Bank, Riverside, in
celebration of completion of the bank’s
new building. Don Kirchner, vice
president and cashier, designed the
Ray Marner, Wellman, is president
of the bank.

To Federation Post
John R. Martin, vice president, For­
est City Bank and Trust Company,
Forest City, has been appointed chair­
man of the Forest City chapter of the
National Federation of Independent
Business, according to Merle Sander,
district manager of the federation.

Data Processing Seminar
Security National Bank, Sioux City,
last month held a Data Processing
Seminar to explain the services avail­
able to correspondent banks in the in­
stitution’s Computer Service Center.
Visiting bankers were given a demon­
stration in the Center of the actual
transmission of a correspondent bank’s
demand deposit t r a n s ac t i o n s per­
formed by the computer. More than
100 bankers, representing more than
60 area banks, attended the seminar.


Not even 25% of the Iowa Banks
correspond with American Trust... Yet !


yr _jm

n _p •


We are Tickled Pink to
be the FASTEST
Correspondent Bank
in the State of Iowa.
We invite You to join
Our happy Family . . .



Color M e P ink’
Federal Reserve Bank of St. Louis

“ At Your Service" at the . . .

\ 1 /


american trust
a n d s a v in g s b a n k



N o r t h w e s t e r n Banker, D e c e m b e r , 1965


Io w a


P la n 11 h v a tla n tl lia a la liu ild in i/

Northeast Iowa
banks look


for speedy,

Celebrate 4 0 Years


to be constructed by First Trust and Savings Bank, Wheatland.

First State Bank, Rockford, recently
celebrated its 40th anniversary of serv­
ice. T. Edward Batty is president of
the institution.


Harry Schuller Re-elected
Indianola Assistant Cashier
Don Russell has been named assist­
ant cashier by the board of directors
of the Peoples Trust and Savings
Bank, Indianola. Mr. Russell joined
the bank in January, 1964. He now
assumes additional duties in the loan

Melbourne 60tli Anniversary
Melbourne Savings Bank last month
celebrated the completion of both its
new banking facilities and completion
of 60 years of service to the com­
munity with an open house.
The bank first opened May 2, 1905
with a capital structure of $11,000.
Since 1920, the bank had done business
in a brick structure on the east side
of Main street. The new 40 x 74-foot
building is of modern design, in a
combination of brick and glass.

PHONE 2 3 5 -0 3 3 1

(Area Code


Uniform Code Workshop
The Toy National Bank, Sioux City,
last month held a special workshop,
centering around the Uniform Com­
mercial Code, for its Iowa correspond­
ent banks.
Collin W. Fritz, vice president and
trust officer, Jasper County Savings
Bank, Newton, and U. H. Bunkers,
vice president and trust officer of the
Toy, spoke to the group of approxi­
mately 125 bankers after they were
welcomed by J. William Van Dyke,
chairman of the board, and Carleton

Federal Deposit Insurance Corporation
Federal Reserve System

N o r t h w e s t e r n Banker, D e c e m b e r ,
Federal Reserve Bank of St. Louis

C. Van Dyke, president. Following the
program, the bankers were guests of
the Toy at a social hour and buffet

J9 6 5

Franklin J. Lunding, chairman of
the board of the Federal Reserve Bank
of Chicago, has announced that Harry
W. Schaller, president, The Citizens
First National Bank of Storm Lake,
has been re-elected a Class A director
of the Federal Reserve Bank of Chi­
Joseph O. Waymire, vice president
and treasurer, Eli Lilly and Company,
Indianapolis, was elected a Class B
director succeeding William A. Han­

James E. Gibney
James E. Gibney, 72, president of the
Watkins Savings Bank, died recently
in Cedar Rapids following a lengthy
illness. He had farmed in the Benton
county area for 50 years and had
been a committeeman for the county
A.S.C.S. for 26 years.

Offers Savings Bonds
The First National Bank of Council
Bluffs last month began offering its
customers First Savings Bonds bear­
ing 4% per cent interest. The nego­
tiable bank notes guarantee this inter­
est for five years, according to Dale
Ball, president. He said bonds held
for the full five years could collect
25.1 per cent interest compounded on
a quarterly basis.
Mr. Ball said the bonds are being
offered to attract additional funds into
the bank so they can be loaned to aug­
ment the present $19 million loan to­
tal carried by First National.


"Accepted Sale Register» by Bank
Clerk» Everywhere"
For information write


Oakland, Iowa



Chicago: No. 1 face-lifter
(a n oth er g o o d reason fo r a ba n kin g con n ection with th e H a rris)
You h a ven ’t seen C hicago if
y o u h a v e n ’ t seen it la te ly .
M ore than $436 m illion have
gone into new business b u ild ­
ings in the city and its sub­
urbs in the past three years.
A n d C h i c a g o k e e p s on
changing. I t leads the nation in
value o f com m ercial con stru c­
tion planned for the future.
T h is k in d o f in v e s tm e n t
tells you som ething about the
com m ercial, industrial, finan­
cial and even cultural health
o f this great city.
Federal Reserve Bank of St. Louis

Let the Harris be your co r­
respondent in Chicago. W e’re
a banker’s bank. W e’ ll make
available our wide experience
and resources to y o u — inter­
national banking, overloans,
bonds, portfolio counseling—
and m any other services.
T h e next tim e the Harris
man com es to call, let him
show you som e o f the ways we
help our correspondents. Or
you can drop us a line. And
when y o u ’re in the L oop , com e
in and see us.

Trust and Savings

Organized as N. W. Harris 8 Co. 1882 — Incorporated 1907
Member Federal Reserve System . . .
Federal Deposit Insurance Corporation

N o r t h w e s t e r n Banker, D e c e m b e r, 1965


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I .B .A . T u x S ch o o l

to 9 p.m. Average attendance at the
first series of meetings, last spring,
was 55 to 60 persons. Hugh W. Mor­
ris, Sioux Falls, a representative of
J. M. Dain & Company, conducted the

A tte n d s S c h o o l

Mason City Ag Rep

were on hand for the two-day 18th An­
nual Iowa Bankers Association Tax School
conducted last month in Des Moines. More
than 300 persons registered for the school,
resulting in full sessions throughout. Left
to right are: Donald A . Ogren, Internal
Revenue agent; Paul J. Powers, chief
audit division, Internal Revenue Service,
and M ilton C. Bardon, Internal Revenue
agent-instructor. Ed H. Spetman, Jr.,
pres., Council Bluffs Savings and pres.,
I.B.A., presided at the first day’s sessions.

Denison Investment Seminar
Crawford County Trust & Savings
Bank, Denison, has completed a series
of sessions dealing with common
stocks as an investment medium and
has begun a second series of the ses­
sions to run through November and
December, according to T. P. Feddersen, president.
Mr. Feddersen reported that, with
the organization of Iowa Beef Packers,
many residents had their first experi­
ence as investors. “We recognized the
need,” he said, “to serve the citizens
of the area in a unique manner by
sponsoring an investment seminar.”
The strictly educational programs
were conducted in a series of six meet­
ings on consecutive Tuesdays from 7

Gary A. Hermann has joined the
First National Bank, Mason City, as
an a g r i c u l t u r a l representative. A
graduate of Iowa State University,
Mr. Hermann began his business
career with the Swea City State Bank
in August, 1961. In June, 1964, he
joined the Eastern Iowa Production
Credit Association office where he was
responsible for agricultural loan serv­

Predict Mortgage Increase
Housing starts should show a mod­
erate increase during 1966 following a
decline this year, Continental Illinois
National Bank and Trust Company
predicted in Chicago.
Writing in its publication, Continen­
tal Comment, the bank said most of
the existing oversupply, which caused
this year’s decrease has been worked
off, and strong demand will cause a
rise next year.
Financing for new home mortgages
remains plentiful, the bank said, but
mortgage rates may increase in the
months ahead. The nationwide rate
for all conventional mortgages was
5.76 per cent in August, down from
a high of 5.92 per cent in 1964, but up
slightly from a low of 5.72 per cent in

O N E OF T H E 90 senior level commercial
bank executives who attended the 7th an­
nual Commercial Bank Management Pro­
gram last month at Columbia University’s
Graduate School of Business in New York
was Gregory W . Corken (left), v.p. of Du­
buque Bank and Trust Company, Dubuque,
Iowa. He is pictured with Dr. Robert P.
Shay, director of the program.

5 0 Years o f Service
An open house last month at the
Alton Savings Bank, Alton, marked
the completion of the bank’s first 50
years in business. The Golden Anni­
versary open house was held in con­
junction with the completion of an
extensive interior remodeling project.
Earl S. Kiernan is president of the
bank and Max Kiernan is vice presi­
dent and cashier.

Joseph Welman, Jr.
Joins St. Louis Bank
Joseph C. Welman, Jr., has been
elected a vice president of the First
National Bank in St. Louis. He will
be in the commercial banking depart­
Mr. Welman has been serving as
assistant chief examiner in the eighth
district of the Federal Reserve in St.
Louis. He is the son of Joseph Wel­
man, president of the Bank of Kennett, Mo., and former president of the
American Bankers Association.

Offers First Savings Bonds
The First National Bank of Council
Bluffs is offering investors 4% per
cent First Savings Bonds.
According to Dale Ball, president,
the bonds are 4% per cent negotiable
bank notes which guarantee this in­
terest for a period of five years.

H. G. Haug
Funeral services were held Satur­
day, December 4 for H. G. Haug,
president, Citizens Savings Bank,
Spillville. He had served the bank
for many years as president on an in­
active basis.
N o r t h w e s t e r n Banker, D e c e m b e r ,
Federal Reserve Bank of St. Louis



Federal Reserve Bank of St. Louis




N o r t h w e s t e r n Banker, D e c e m b e r , 1965


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i Commercial#iuiv . . .
(Continued from page 33)
ceeds. To my knowledge this section
of the Code is as yet untested. How­
ever, if court decisions follow the line
presently established with reference
to the Code, this section should hold
and will greatly simplify the secured
parties’ position with reference to this
type of lending.
With r e f e r e n c e to after-acquired
property, Section 9-108 of the Code
specifically gives us the right to take
after-acquired property as collateral.
However, I would like to point out
that after-acquired property may not
stand as collateral for prior debt if
bankruptcy comes into play.
One of the biggest headaches to the
banking fraternity in years gone by
has been the problem of commingled
or processed goods which had been
previously pledged as collateral. Sec­
tion 9-315 of the Code sets forth the
If the security interest in goods was
\perfected and subsequently the goods
or a part thereof have become part of
a product or mass, the security inter­
est continues in the product or mass
provided the Financing Statement cov­
ers “products.” Under comment con­
cerning this section reference is made
to the hypothetical case where the se­
cured party has a security interest in
flour which eventually is commingled
with eggs, sugar, etc., into cake mix.
This comment goes on to say that the
law treats all interest equal in prior­
ity and that each is entitled to share
rateably in the product (cake mix).
A great deal of confusion has arisen
in the past with reference to certain
liens for services or materials. Sec­



tion 9-310 of the Code deals with the
situations and says, “When a person
in the ordinary course of his business
furnishes services or material with re­
spect to goods subject to a security
interest, a lien upon goods in the pos­
session of such person given by stat­
ute or rule of law for such materials
or services takes priority over a per­
fected security interest. Please note
that one of the key words in this sec­
tion is possession. The general inter­
pretation of this section seems to be
that the supplier of materials or labor
would have a prior lien to our security
interest in an item provided he main­
tains possession of the item.
R ig h t s to C o lla te r a l

Section 9-503 of the Code says that
unless otherwise agreed a secured
party on default has the right to take
possession of the collateral and may
so proceed without judicial process if
this can be done without breach of the
peace. This section also says that if
the Security Agreement so provides
the secured party may require the
debtor to assemble the collateral and
make it available to the secured party
at a place to be designated by the se­
cured party provided the place is rea­
sonably convenient to both parties.
Section 9-504 says that a secured
party after default may sell, lease, or
otherwise dispose of any or all of the
collateral in its then condition or fol­
lowing any commercially reasonable
preparation or processing and that
any sale of goods is subject to reason­
able expenses of retaking, holding,
preparing for sale, and selling.




Section 9-506 deals with the debtor’s
right to redeem collateral. According
to this section the debtor may at any
time before the secured party has dis­
posed of the collateral or entered into
a contract for its disposition redeem
said collateral by tendering fulfillment
of all obligations secured by the collat­
eral as well as expenses reasonably
incurred by the secured party includ­
ing reasonable attorney’s fees and ex­
penses. This same right is also
granted to any other secured party
who is interested in the collateral.
C o n ten ts

Because of space limitation I have
confined this presentation to secured
transactions and completion of the
forms required. However, the Code
contains many benefits in other areas
and certainly deserves close study.
In my work with the Code up to
this point I have not as yet found a
single place in which I feel that the
banking industry has lost any ground
whatsoever. With this thought in
mind I believe the banking industry
should welcome the Code with open
arms and take whatever time is neces­
sary to learn the simple mechanics
necessary to do our jobs properly with­
in the framework of the Code.
Acceptance and proper use of the
Code opens the doors on a whole new
world of collateralized lending. To the
drafters of the Code should go our un­
reserved thanks.—End.

Opens Vienna Branch
The Bank of America opened its
Vienna branch last month and be­
came the first American commercial
bank with facilities in Austria. It is
the bank’s eighth branch in Europe.


Makes it much easier for you to convert your accounts into buying their own checks.
Ask our salesman about this plan.

N o r t h w e s t e r n Banker, D e c e m b e r,
Federal Reserve Bank of St. Louis



American National has an excellent banking
connection in Marseilles.
Federal Reserve Bank of St. Louis

Marseilles, Illinois, that is.
Officers of the Union National Bank
of M a rs e ille s know that they can
depend upon American National for
prompt, first-class creative correspon­
dent banking services. Lots of service
and a minimum of red tape.
Our correspondent banking officers
speak many languages: “ Investments”,
“ C a tt le " , “ A u to m a tio n ", “ C o rn ",

“ Credit”, “ Soya Beans” , “ Trusts” . (Ask
one of them to say som ething in
“ Automation” .)
Need a big correspondent bank in
Chicago whose officers speak in your
native tongue? That's us. American
N a tio n a l. (In c id e n ta lly , we have
excellent banking connections in Paris,
France, too.)

W e serve thousands o f p e o p le .. . but w e serve them one a t a time

American National Bank
and Trust Company of Chicago/LaSalle at Washington
FRanldin 2-9200


Member Federal Deposit Insurance Corporation

Northw estern

Banker, D e c e m b e r, 1965


Io w a


LEFT— R obt. J. Norish, repr., Central Natl., visits with Leo
T ill, dir., Cascade St. Bk., Cascade, Iowa. CENTER— Robt. E.
H am ilton, sr. v.p., Central Natl. RIGHT — Jerry Leighton, ag.

repr.; K athleen Boyle, and N orbert J. K ash , repr., Central NatL
Nearly 600 attended conference.

At Chicago Conference:

F o r e c a st F a v o r a b le L i r c s i o c b
anil tin si a c ss F i d a rc fo r IfHiti

MALCOLM FREELAND, P u b l i s h e r

ATTLE financing for the next year He indicated that producers may re­
looks favorable for country banks tain large numbers of sows and gilts
and their farmer-feeder customers,for breeding purposes during the first
providing that the farmer-feeder has part of 1966 thus further decreasing
a good, sound feeding program that is slaughter numbers. Hog prices dur­
in keeping with the type of his farm ing the second half will depend large­
ly on how quickly the current expan­
and his own capabilities.”
This was the conclusion drawn by sion in production progresses and how
G. E. Leighton, agricultural represent­ big it is.
Commenting on the general busi­
ative for the Central National Bank,
Chicago, at the bank’s annual confer­ ness picture, William L. Evans, senior
ence for correspondent banks, held vice president of the bank, predicted
during the International Livestock that business next year should be at
least as good as in 1965.
Show in Chicago.
“The first six months may very well
C a ttle P r ic e T r e n d
show a slight consolidation or leveling
Factors which will help the cattle off, with the latter part of 1966 show­
market maintain higher average prices ing an increase in activity as a result
in 1966, according to Mr. Leighton, of substantial governmental expendi­
are: the war in Viet Nam; increased tures projected in the great society
buying by the government for the and Viet Nam areas,” he said.
school lunch program; little competi­
Mr. Evans was one of several senior
tion from cheap pork, and lack of for­ officers discussing the business out­
eign beef imports due to a serious look.
drought in Australia. The number of
A special advisory committee on
cattle on feed and the available re­ agriculture was announced by the
placement cattle also indicates mar­ bank during the conference. Chair­
kets continuing under present levels man of the group will be David L.
for at least four to six months.
Reimers, president of the former Live
Robert E. Hamilton, senior vice Stock National Bank, which merged
president, presided at the annual con­ with Central National earlier this
ference as head of the correspondent year.
Other members of the advisory
banking division.
group will be: Allen B. Kline, past
H o g P r ic e O u tlo o k
president of the American Farm Bu­
F. W. Huff, second vice president, reau; W. G. Glennon, president, Amer­
presented a favorable report on the ican Feed Manufacturers Association;
future price outlook for hogs. He Donald Magdanz, executive secretarymentioned that a 12 per cent decrease treasurer, National Livestock Feeders
in hog numbers in September would Association (Omaha), and Dr. Earl
further support higher prices and less L. Butz, dean of agriculture, Purdue
kill during the first quarter of 1966. University.


N o r t h w e s t e r n Banker, D e c e m b e r , 1965
Federal Reserve Bank of St. Louis

Central National Bank completed
its activities at the International Live­
stock Show by purchasing the Grand *-•
Champion steer for $10 per pound.
Weighing 1,040 pounds, it cost the
bank $10,400. It will be “placed on
tour” among some of the bank’s V,
At a dinner session of the confer­
ence, Dr. Earl L. Butz, dean of agri­
culture at Purdue University, spokeon the free enterprise system.— E n d .

Resigns at Waukon
Donald Jennings has resigned as
cashier of the Farmers and Merchants ^
Savings Bank, Waukon, to join the
Onsgard State Bank, Spring Grove,
Minn., as executive officer.

Bank Aids Conference
A leading Chicago bank played a
major role in the success of a special
industrial development conference in
the La Salle-Peru (111.) Holiday Inn
last month that was attended by an
estimated 200 business and civic lead­
ers from a three-county area.
The bank was La Salle National, whose director of industrial develop­
ment, Robert O. Pohl, not only helped
set up the conference, but also con­
ducted a special study for the locals
chamber of commerce which he re­
ported on at the meeting.
Mr. Pohl, who was one of five speak­
ers, presented a review and forecast
of likely commercial and population ''
developments in the next decade. One
of his most important predictions was
that anticipated movement of industry
into the La Salle-Peru area could mean _
the creation of as many as 10,000 new
jobs by 1975.

New Illinois Executive
J. Robert Effinger has been named
executive vice president of GarvWheaton Bank, Wheaton, 111.
While assistant vice president of
Merchandise National Bank fo four *
years, he was active in commercial
lending and business development.


W e have had a wonderful year at Marquette
— thanks for the opportunity so many
have given us to serve their correspondent
banking needs. Our warmest
Season’s Greetings to all — and best

wishes for the New Year.




Carl Pohlad, President

Otto H. Preus, Vice President
R. W. (Bill) Crouley, Vice President
Avery Fick, Assistant Vice President
Stewart Stotesbery, Representative
Federal Reserve Bank of St. Louis

N o r t h w e s t e r n Banker, D e c e m b e r , 1965


Io w a


W a re h o u se I 0/o n H elps Il o « / H euler A iil Sheepm en
F I. KAY GREER of Salt Lake City,
Utah, had his way, wool production
in the United States would be a lot
greater today.
As it is, the U. S. produces only 27
per cent of the wool used in this coun­
try. Of the 73 per cent imported, the
amount from Australia varies from
year to year, but consistently a high
per cent comes from the down-under
Kay Greer has nothing against im­
ported wool, as such. As the head of
the Greer Company, Inc., with office
and warehouse at 404 West Seventh
Street South in Salt Lake City, one of
the country’s big wool wholesalers
and warehousemen, he contends there
is money to be made in U. S. grown
wool if everyone in the industry from
the sheepmen to the manufacturers
get on the ball. But he has a strong
feeling that if sheep production con­
tinues on a downward trend as it has
now for several years, the United
States may some day find itself with­
out any wool of its own and will be
forced to import what is needed for
the wool manufacturing industry.
And, as Mr. Greer puts it, an im­
porting nation is not as strong as one
that has its own resources.
The 38-year-old Mr. Greer works
closely with the sheepmen in the Utah,
Idaho, Wyoming, Nevada and Cali­
fornia areas where he buys wool. This
he warehouses in Salt Lake City
through a field warehousing agree­
ment, now in its 15th year, with the
Lawrence Warehouse Company, in co­
operation with the First Security
Bank of Utah, N.A. The Lawrence
C o m p a n y ’ s w a r e h o u s e operation,
which is similar to the many field
warehousing programs this nation­
wide organization has set up through­
out the U. S., enables Mr. Greer to
maintain a revolving working capital
fund through which he is able to buy





Write or call collect

Area Code 319

Confidential Consulting Service
Merchants National Bank Building
Cedar Rapids, Iowa

k . ...... ............................................... /
N o r t h w e s t e r n Banke r, D e c e m b e r , 1965
Federal Reserve Bank of St. Louis

WOOL PRO DU CTIO N in America is being
encouraged by I. K a y Greer, left, head of
the Greer Company, big wool producers in
Salt Lake City area. He is shown in his
warehouse with Stephen Mansur, a wool
grader, going over a portion of the one
million pounds of wool that he had ware­

wool direct or make advances to grow­
ers who warehouse their wool through
Mr. Greer would like to see the gov­
ernment intensify its current incen­
tive programs with the country’s
sheepmen to encourage greater pro­
duction of wool.
He knows it is going to be a tough
job. There is less interest today in
starting a sheep ranch than there was
some years ago. And, too, there is
less range land available because more
and more of the area is being turned
into recreational facilities.
While Mr. Greer’s operation as a
wool “dealer” is perhaps typical in
the trade, the field warehousing set­
up is unique with the Lawrence Ware­
house Company because of the manner
in which warehouse receipts are is­
sued to the First Security Bank of
Utah on wool warehoused by Greer.
The Greer Company is a wool dealer
buying some wool from growers un­
der wool purchase contracts. At the
same time, Mr. Greer provides an ex­
tra service for the benefit of growers

by sharing his Lawrence warehouse
privileges with them. The greater
bulk of “grease wool” in storage at
Greer’s is the property of the individ­
ual growers to whom he has made ad­
vances. The growers’ wool is depos­
ited with Mr. Greer as agent for the
grower under a special “wool market­
ing agreement.” This specifically au­
thorizes him to warehouse the wool
with the Lawrence Warehouse Com­
pany in the name of the First Security
Bank of Utah, N.A., and also to as­
sign the agreement to that bank as
security for loans to reimburse him
for the advances which he has made
or will make to the grower.
The amount in storage, and the time
involved will depend each year on
market conditions which affect Mr.
Greer’s decision whether to store
against a better market or to sell and
ship as the wool comes in.
As it is with all field warehouses
which the Lawrence Warehouse Com­
pany sets up, an employee of the de- <
positor is hired as warehouse man­
ager and placed on the Lawrence
Warehouse Company’s payroll under
bond. In the Greer Company, the /
warehouse manager is a most attrac­
tive one in the person of Mrs. Sharon
Sturzenegger, who handles all of the
records and issues warehouse receipts.
Although the Greers had utilized w
the field warehousing facilities of Law­
rence Warehouse Company since 1950,
the operation was revamped two years
ago and includes a new arrangement^
which provides for the “showing” of
the wool to prospective buyers and for
the “sorting and grading” of original
lots into graded lots. At this time,
original receipts are reissued. The
growers authorize such sorting and
grading in their agreements and copies
remain a part of Lawrence Warehouse
Company’s records at the warehouse. -rHeber F. Aldous, vice president of
First Security Bank of Utah, N.A.,
who has handled the Greer account
since its inception 15 years ago, said ^
the new provisions enabled Lawrence
Warehouse Company to handle a some­
what complicated storage account in a
relatively simple manner that was
beneficial to all concerned—the bank, j—
the Greer Company, the growers, and
Lawrence Warehouse Company. —

Joins Security First
Richard V. Schoonover has been
named assistant advertising director
of Security First National Bank, Los
Angeles. He was formerly with Young & Rubicam as a merchandising ac­
count executive.
Federal Reserve Bank of St. Louis


The officers, directors and employees of the First
National Bank in Sioux City join in wishing you a
Merry Christmas.

F ir s t N a tio n a l B a n k
M e m b e r F e d eral D eposit In su ra n ce C orporation

in S i o u x C ity

Northwestern Banker, December, J965


Io w a


HOth V eer for Des .1#eines A

C E R T IF IC A T E S F O R C O M P L E T IO N of A.I.B. courses were presented to recipients
by L loyd Querrey, Central National, Des Moines, 1st v.p. of the Des Moines A.I.B.
chapter, at a special Golden Anniversary dinner-dance meeting in Des Moines. Seated
between Mr. Querrey and the recipients are C. O. Petersen, Valley Bank & Trust, pres­
ident of the Des Moines chapter, and M rs. Petersen. Receiving certificates were
Richard W o lf, Capital City State, Jerry H ickok, Altoona State, and Norm an Hougham,
Capital City State. M ariiyn H ia tt, Central National, another certificate winner, was
unable to attend.

Plan Montezuma Building
Kenneth Cox, president of the Mont­
ezuma State Bank at Montezuma, an­
nounced plans last month for exten­
sive remodeling and expansion of the
present bank building. A store build­

ing adjacent to the bank will be in­
corporated to provide space double
the present size of the bank.
The exterior of the two buildings
will have a new front 12 feet high,
faced with Roman brick and a top

G U E S T S P E A K E R at the Golden Anni­
versary meeting of the Des Moines Chap­
ter of A.I.B. was A rthur K . Erpelding,
Farmers & Merchanics Savings, Minne­
apolis, executive councilman of District
10, A.I.B. Seated at left is W illiam
Greaves, Central National, Des Moines,
associate councilman for Iowa.

border of stainless steel on which the
bank name will appear in gold ano­
dized aluminum letters on both street
sides of the building.
Mr. Cox said work is expected to
get underway by March 1, 1966, with
completion scheduled for early sum­
mer. The bank will complete its 75th
year during 1966.

Your friends at Drovers
send you Best Wishes for a
Happy Holiday Season.

Drovers National Bank
47th S t. & Ashland A v e . • C hicag o , Illin o is 60609
Phone: Y A rd s 7-7000

N o r th w e s t e r n Banker, D e c e m b e r ,
Federal Reserve Bank of St. Louis



Jarry Parker, special representative for Oklahom a and A. L. Hall, Vice President.

You can depend on
this Commerce Trust
man to help with any
petroleum problems
Federal Reserve Bank of St. Louis

W hen one of our correspondent banks has a question
regarding any phase of the oil business, they can
always call on A. L. (Rosie) Hall. A Com m erce Trust
vice president and a registered professional engineer,
he's the man who has the facts they need.
W e'll be glad to help you— with advice or partic­
ipation dollars on gas and oil production from the
ground— or in any other way that w ill best benefit
your customers.
You'll find all of Com m erce Trust's specialists, like
M r. Hall, heavy on experience and capable of handling
both routine and com plex requests.
Tell your problem to Kansas City's biggest bank
for prompt and satisfactory solutions.
W e'd like to have you as a customer.

(ommerce '¡rust (ompanv
Member Federal Deposit Insurance Corporation
Correspondent Division
Commerce Tower— 9th and Main, Kansas City, Missouri

Northw estern

Banker, D e c e m b e r , 1965


IN ks


Mollies News


for the last six


Mr. Jordahl was formerly as­

* years an examiner for the State sistant vice president of the North­
of Iowa for the Federal Reserve Bank west Des Moines National Bank and
of Chicago, has been named assistant
vice president of
B a n k ers T ru st
C om pany, D e s
He is a native
of Stratford,
Iow a, and was
graduated f r o m
St. Olaf College,
Northfield Minn.,
and from the Ag­
O. J. T O M S O N
S ch o o l of Iowa
State University.
As a member of the staff of the
Federal Reserve Bank of Chicago, he
lived in Ames, and was assigned to
examining state member banks lo­
cated in Iowa. Earlier he was assist­
ant national bank examiner with the
U. S. Comptroller of Currency.
He will be in the commercial loan
department of Bankers Trust, and as­
sist the correspondent banking depart­
=t= * *
D o n a ld H . J o r d a h l was elected cash­
ier last month of the South Des
Moines National Bank, Des Moines,


has been employed by the Brenton
Banks since 1960.
In June, he represented the Des
Moines Chapter of the North Central
States at the National A.I.B. public
speaking contest, New Orleans, La.
* * *
Construction has begun on the
Iowa-Des Moines National Bank’s new
suburban office located at Beaver and
Douglas Avenues in northwest Des
According to C. W . A u r a n d , IowaDes Moines president, the two level
bank building and adjacent motor
bank facility is scheduled for comple­
tion in the spring of 1966. Some spe­
cial customer features of the new
bank will include three drive-in tell­
ers, a completely furnished meeting
room available to the public, and a
large parking lot with access from
both Beaver Avenue and Douglas
General contractor for the project
is Wm. Knudson & Son and architects
are Savage & Ver Ploeg of West Des
* * >!=
The election of four new members

W ork on Suburban Off irr

N E W S U B U R B A N O F F IC E for Iowa-Des Moines National Bank at Beaver and
Douglas Avenues in northwest Des Moines.
N o r t h w e s t e r n Banke r, D e c e m b e r ,
Federal Reserve Bank of St. Louis

to the board of directors of the North­
west Des Moines National Bank was
announced by D a v id G . W r i g h t , presi­
dent. The new directors are: R a y ­
m o n d B a k e r , director of corn breeding:
research for Pioneer Hi-Bred Corn v
Company; E . C. E v e r lin g , president of
H. M. litis Lumber Company; G e o r g e
E. O ’M a lle y , attorney and State Sena­
tor; and B r u c e P a te r s o n , special repre- *
sentative for Goodwin Companies.
Mr. Wright also said that the bank
plans to move to its new building,
presently under c o n s tr u c tio n at <
Beaver and Urbandale Avenues, in
the spring of 1966. The bank also
operates an office in Urbandale, and
will open an additional office in John­
ston in the near future.
* * *
A suburban office for the F i r s t F e d ­
e r a l S ta te B a n k of Des Moines is now
under construction at 8590 Hickman
Road in Clive, it was announced by
Harris Stephens, chairman of the
The facility is expected to be open
about December 13 and will feature
a drive-up teller, a night depository,
and a safe deposit vault inside the
building. A parking lot is adjacent
and access will be available frorii
either Hickman Road or Clive Road.
General contractor for the project
is King-Bole, Inc., and architects aié
Charles Herbert and Associates.
R ic h a r d P . P r a tt has been elected
assistant vice president and manager
of the installment loan department of
Northwest Des Moines National Bank,
it has been announced by D a v id G .
W r i g h t , president.
Mr. Pratt, who previously was an
officer of the Dallas County State
Bank at Adel, has been a U. S. Army
officer and an Agricultural Extension
Service worker.
* * *
P a u l A s h b y , vice president o f Cen­
tral National Bank and Trust Com­
pany, spoke at a recent program in a
series of meetings titled “ Highlights
of Iowa History.” His topic was in­
teresting tidbits of early Polk County
The series is sponsored by the Pot
County Historical Society and the De­
partment of Adult Education of the
Des Moines Public Schools.


R . G . D ic k in s o n a n d C o m p a n y , De.
Moines based investment ban k in
firm, has moved its offices to 910 Hi|
Street. The new offices have bee’,
completely remodeled.
Formerly located at 919 Walnut, the
firm serves Iowa bankers through
eight branch offices.

Federal Reserve Bank of St. Louis


Serving the banks
and public of Iowa

iàlLiLÌITT © U M
« asa®

co © mi ip æ i s s i t

W A L N U T AT F O U R T H * M E M B E R F D I C * D E S M O I N E S

N orthw estern

Banker, December, Ï965


Io w a



Rates 25 cents per word per
insertion. Minimum: 12 words.
306 15th St., Des Moines, Iowa



NCR 450 Proof Machine at depre­
ciated value. Used approximately
18 months. Available due to sys­
tems change. For complete infor­
mation write JAD, c/o North­
western Banker, 306 15th St., Des
Moines, Iowa.


Young, ambitious bank officer
wants position in city over 25,000.
Excellent work record, and varied
loan experience. Send replies to
BANKER, 306 15th Street, Des
Moines, Iowa 50309.

D I S P L A Y IN G T H R E E D O L L S to be given away as Christmas presents by Central
National Bank, Des Moines, are Bonnie Thompson, chairman of the doll-dressing contest,
Diane Gibbs, a bank hostess, and A nna Comer, bank secretary.

Central Xntionnl Hires Airni/
200 1
hristm as Contest I
Central National Bank, Des
Moines, will make Christmas con­

siderably brighter for approximately
200 underprivileged young girls as a
result of the bank’s recent Christmas
Doll contest.
First, the bank purchased 16 dozen
“Wendy” dolls and advertised for per­
sons to sign up for the dolls, take
them home and fashion clothes for
The bank offered prizes in six cate­
gories of dress and a grand prize for
the doll judged best dressed in final
Judging took place Saturday, De­
cember 4, and Tuesday, December 7.
The seven winners were guests at a
coffee where the prizes were awarded.
The final, and perhaps most impor­
tant step, will take place when the
exquisitely dressed dolls are given to



For 25 years we have handled
the purchase, sale and merger of
insurance agencies. We have also
evaluated agencies for estate, tax
and sale purposes.



W rit e


f ree


MB No. 1 " E v a l u a t i o n of an A g e n c y "

Henry H. Byers, President
Myron E. Karsten, Exec. Vice Pres.
1301 Register and Tribune Bldg.,

N o r t h w e s t e r n Banker, D e c e m b e r,
Federal Reserve Bank of St. Louis



TELEPHONE 312 427-9040

the Polk County Welfare Department
for distribution to underprivileged
young girls.
Ivan Johnson, assistant vice presi­
dent in the bank’s business develop­
ment and public relations department,
said that the response to the contest
was very good and that the dolls were
signed for, dressed and returned to
the bank very promptly.

New Fonda Cashier
Wayne N. Hettinger has joined the
First National Bank, Fonda, as cash­
ier, according to
Walter W. Stege,
Mr. H e ttin g e r
was an assistant
v ic e p re s id e n t
with the Toy Na­
tio n a l Bank, in
Sioux City, and
has been with the
/ ' J ' Toy for 19 years.
He replaces Don
W . N. H E T T I N G E R
Tischer, who has
resigned at Fonda. Mr. Tischer has
not announced future plans, but plans
to maintain a residence in Fonda.

Joins Missouri Bank
Frank Henderson, former vice pres­
ident and cashier at the Bettendorf
Bank and Trust Company, has joined
the Cameron State Bank, Cameron,
Mo., as executive vice president. The
bank is a newly-organized bank in


N ew

S if si.

(Continued from page 29)
(checks written) and the fourth col­
umn provides a total of farm income
(deposits) to date for the year.
D o e s R e c o r d -K e e p in g

Rec-Chek thus does the farm opera­
tor’s record-keeping for him through
his checking account. The further
work he needs to do on his bookkeep­
ing is figuring such items as deprecia­
tion and those matters related to
management decisions. This complete
record can be used, then, as the basis
for figuring his income tax statement,
which can be a complicated matter
for a farm owner.
The bank furnishes for a small
charge a box with hinged lid that is
just the right size to keep checks writ­
ten during the course of a year. It
has printed tabs to separate checks
by monthly periods, and also has
space for the monthly printout sheets
as well as deposit records.
All checks written by the farmer or
his family which do not pertain to
operation of the farm business, but
are personal checks, are left unen­
coded. These are processed in the
normal flow of business and entered
on his monthly printout page on a
separate portion of the sheet. If any
of these checks should have been en­
coded with an account number to re­
flect part of the farm business, this
correction can be made easily by the
farmer as he reviews his monthly
statement, by adding the check or de­
posit in the proper place on the page.
Mr. Anderson makes it a practice
to further extend his printout sheet
by taking a few minutes with the
monthly statement to write in the
names of the persons or firms to
whom each check was written on the
line where this check is printed. The
same is done for deposits. The check
file substantiates this material if the
tax return is audited later.

S ta r te d

P rogram

In March of 1965, the Nevada Na­
tional Bank invited by personal letter
about 100 farm customers to attend a
meeting to discuss this system. Prac­
tically all of those invited attended.
A panel of four men from the bank
explained the program and invited
these men to enter the pilot operation.
About 55 of them signed up to start
Lpril 1, most of them that night. Rec'hek now has been in use for eight
months by these 55 farm customers of
the Nevada National Bank and they
have given it their whole-hearted en­
Federal Reserve Bank of St. Louis

These men were then asked to bring
their records for the first part of the
year to the bank in the evening on
an appointment basis, so the records
could be set up for each man starting
with January 1. This took only about
one-half hour per customer. This fall
the men and their wives were invited
to a dinner at which the program was
reviewed, including improvements the
bank has devised.
One of the major improvements was
to let these original customers of the
Rec-Chek program know that on De­
cember 3 the Nevada National’s IBM
punch card system was being replaced
by an IBM Random Access 1440 digi­
tal computer, a much more sophisti­
cated and versatile system.
Managing the computer center is
Tom Johnston, who joined Nevada
National in March of this year. His
previous data processing experience
had been with the Atomic Energy
Computer Center at Iowa State Uni­
versity in Ames.



gramming for use on either punch
card equipment or for electronic data
processing equipment, forms needed
to get records started from the first
of the year to the customer’s starting
date on Rec-Chek, and advertising ma­
terials used to promote the program.
In addition to the check file box,
Nevada National also furnishes each
customer with a binder for the 8% x
11 inch monthly printout statements.
— End.

Spencer Bank Sold
Controlling interest in the Farmers
Trust & Savings Bank, Spencer, has
been purchased by Easter’s, Inc., a
leading central Iowa grocer, head­
quartering at 4143 East 43rd street,
Des Moines. The firm also owns Ace
Lines, Inc., a trucking company.
Two members of the Easter firm
will go on the board of the Spencer
bank. They are: Don Easter and
Merwin “Abe” Easter. No changes in
officers of the bank are contemplated
at this time. Capital, surplus and un­
divided profits of the bank total more
than $1.5 million. Deposits are over
$8 million, and loans exceed $3.7 mil­

N a t io n a l R e s p o n s e

After Rec-Chek began actual opera­
tion, a brief mention of it appeared
in one of the national farm publica­
tions. Mr. McHose said the response
from this brief mention nation-wide
was most surprising to officers of the
bank. For example, a lawyer in New
York State telephoned long-distance
and said he wanted to open an ac­
count in order to have the bank do
this record-keeping for him and elimi­
nate the bookkeeping headaches he
has similar to the ones experienced
by farmers.
Another inquiry was from the vice
president of a large national firm in
Los Angeles who wanted more de­
tailed information on the program and
expected to open a personal account
at Nevada National for the same pur­
pose, since it is not available at his
own bank. This indicates the adapt­
ability of Rec-Chek to personal and
small business accounts. The Nevada
National is alreadv doing this for
some customers who want the con­
venience of business records being
kept this way, or individuals who
want a monthly accounting of how
their personal funds are spent.
O ffe r e d to O th e r B a n k s

Because of such widespread inter­
est, Mr. McHose says the system de­
veloped by Nevada National is being
offered to other banks in any part of
the nation. The franchise for RecChek will include the computer pro­

Citibank Promotions
Dan C. McNeill has been appointed
a vice president of First National City
Bank, New York. Mr. McNeill is
assigned to the
bank’s Data Proc­
essing Center.
A graduate of
DePauw Univer­
sity and Harvard
Graduate S ch o o l
of Business Ad­
ministration, Mr.
M cN eill jo in e d
Citibank in May
of this year fol­
D. c. M cN e i l l
lowing his retire­
ment as Captain in the U. S. Navy
Supply Corps.
The bank has also announced the
promotion of Robert W. Thom from
assistant cashier
to assistant vice
president, and the
e le c tio n o f E.
W ard Sm ith to
assistant cashier.
Mr. Thom trav­
els the Iowa, Ne­
braska, K ansas
and M i s s o u r i
area. He began
career with
R. W . T H O M
the bank in 1938
and was named an assistant cashier
in June, 1963. Mr. Smith is a native
of Omaha, and travels the MissouriKansas area.
Northw estern

Banker, D e c e m b e r , Î965

10 2

New Salesman

Advertising Pow er

A new salesman wrote his first re­
port to the home office and it stunned
the brass to learn that obviously the
“new hope” was a blithering illiterate.
He wrote, “ I seen this outfit which
they ain’t never bought a dime’s
worth of nothing from us, and sole
them a couple hundred thousand dol­
lars worth of guds. I am now going
to Chicago.”
Before the illiterate could be given
the ouster by his sales manager, came
another report: “ I cum hear and sole
them half a millyn.”
Fearful if he did, and fearful if he
didn’t fire the illiterate peddler, the
sales manager dropped the problem in
the lap of the president of the com­
The following morning, members of
the brain trust were flabbergasted to
see the two letters posted on the bul­
letin board and this letter from the
president tacked above them: “We ben
spending too much time trying to spel
instead of trying to sel. Let’s watch
them sails. I want everybody should
read them letters from Gooch who is

She stopped at the corner, looked
both ways, and started to cross the
“Hold it,” shouted a policeman.
“ Don’t you see that sign?”
“Which one, officer?”
“The one in front of you on the sig­
nal. It says—DON’T WALK.”
“Oh, I saw it,” she smiled, “but I
thought it was an ad for the bus com­

Too Good

Quick Retort

He ordered two dozen roses to be
sent to his beloved on her 24th birth­
“A rose for every precious year of
your life,” his card read.
Then, because the young fellow was
one of his best customers, the florist
threw in an extra dozen.

A lady walked up to a little boy she
saw smoking. “ Does your mother
know you smoke?” she demanded.
“ Lady,” he countered, “does your
husband know you stop and talk to
strange men on the street?”

Larry: Why do you take your sal­
ary to the bank every week?
Harry: Well, it’s too small to go
by itself.

“ W ou ld you m ind?

I ’m double-parked.”

on the rode doing a grate job for us,
and should go out and do like he



Davenport, F. E., & Company ........... 74,
D e lu x e Check Printers, Inc......................
Denver U. S. National Bank ....................
Diebold, Incorporated ..................................
Drovers N ational Bank .............................





Acorn Printing- Company .........................
Am erican E xpress Company ..................
Am erican N ational Bank and
Trust Company of Chicago ..................
A m erican National Bank and
Trust Company— St. Paul ..5 6 , 57, 60,
Am erican Trust and Savings
Bank— Dubuque r . . . ..................................
A scot House ......................................................


Bank B uilding and Equipm ent C orp .. . 23
Bankers Service Corporation ................... 100
Bankers T rust Company— Des M oines. 82
Bank of A m erica ........................................... 28
Bank of M ontreal ........................................... 18
B lack Sale System ........................................ 10

Central National Bank and Trust
Company— Des Moines ........................... 24
Central States H ealth & Life Co..............103
Chase M anhattan Bank ............................... 43
Chemical Bank New Y ork Trust C o ... 13
Chiles & Company .......................................... 72
Christm as Club A Corporation ............. 45
Commerce Trust Co.— K ansas City . . . 97
Continental Illinois National
Bank and Trust Company .................... 49
Council Bluffs Savings Bank .................. 88
N o r t h w e s t e r n Banke r, D e c e m b e r,
Federal Reserve Bank of St. Louis

Farm Business Council, Inc........................ 18
F ergason Personnel, Inc................................ 100
F igge, Reginald, A ssociates ................ . . 92
F irst National Bank and
Trust Company of Lincoln .................... 81
F irst National Bank and
Trust Company— T ulsa ........................... 48
F irst National Bank in St. Louis ......... 51
F irst National Bank in Sioux City . . . 95
F irst National Bank of Chicago ........... 47
F irst National Bank in Minneapolis . . 52
F irst National Bank of Omaha .............. 73
F irst National Bank of St. Paul ...........
F irst National City Bank .................... 41, 57


M anufacturers Hanover Trust Co..............21
M arquette National Bank ......................... 93
Mercantile Trust Company ...................... 27
Merchants National Bank .........................
Midland National Bank
of Minneapolis ............................................. 55
M innesota Commercial M en’s Assn. . . . 80


N ational Bank of Commerce
Trust & Savings ........................................
N ational Bank of South D akota ...........
National Bank of W aterloo ....................
National Boulevard Bank .........................
Nevada National Bank ...............................
North Central Companies .........................
Northern Trust Company Bank ...........
Northw estern N ational Bank
— Sioux F alls ...............................................


Omaha National Bank




Rahel, J. Cliff, and Company
Recordak Corporation ...............................




Gross, K irk, Company

Careful Fellow

................................ 100




Security National Bank— Sioux City . . 89
South Omaha Stockyards
National Bank ............................................. 77
Studley, Shupert Trust
Investm ent Council .................................... 44

Iow a L egal Blank and P rinting Co. . . . 1 0 0
Iow a-D es Moines National Bank .......... 104

Tension Envelope Corporation ................ 46

H alsey, Stuart & Co., Inc............................. 12
Harris Trust and Savings Bank ........... 87
H aw k eye-S ecu rity Insurance Co.................39



J et-C it-T h ru , Inc...............................................



LaM onte, George, & Son ...........................
LaSalle National Bank ...............................
Lawrence C o m p a n y ........................................
LeFebure Corporation ..................................
Livestock National Bank— Sioux C ity.



United Am erican L ife Insurance Co. . .
United States Check Book C o m p a n y..
United States National Bank— Om aha. 68


V alley Bank and Trust Company
— Des Moines ............................................... 99
V alley National Bank of Arizona ......... 20
Van Horne Investm ents, Inc...................... 74

" . . . you’ll like banking
and be sure you ask about their
Bank / Health Life Program.
Federal Reserve Bank of St. Louis



Does your bank offer prospects
e x tr a o r d in a ry serv ices th e y
need and appreciate?
Central States B ank/H ealth
Life program, for example?
Courteous CS representatives
sell the insurance; obtain an
authorization for you to deduct
monthly premiums from check­
ing accounts. You get a m onth­
ly posting sheet; send Central
States one check, retain a prof­
itable service fee.
M ore than 1000 banks have
th is c o m p e titiv e edge. W h y
not you?

Ce n t r a l S t a t e s
H e a l t h & L i f e Co .
o f Om a h a


iliu m

T. LESLIE KIZER, President
504 South 18th Street
Omaha, Nebraska 68102

in 1 ,0 0 0

With all
our best wishes
for a happy,
prosperous 1966!


Io w a De s M o in e s
National BanH
Federal Reserve Bank of St. Louis

B o b Buenneke A ssistant V ice President, G eorge H arnagel A ssistant
V ice President, B en Eilders A ssistant V ice President, Jerry N elson
V ice President, D a le L uckow A ssistant V ice President