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FEBRUARY 1948 What Shall We Do About Livestock Loans? (S u rvey )—Pas« 15 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MAPLE T. HARL, CHAIRMAN OF THE F.D.I.C.— Page 14 A Strong Record Over a period of 67 years, the Merchants National Bank of Cedar Rapids has steadily increased both in size and in the number of the bank correspondents it serves. It has established a record recognized through out the nation as a bank of character, strength and service. Let us serve you, too, in the midwest area. / ? £& w tc¿*ta7& e /f/ú á vea t THE MERCHANTS NATIONAL = = ]BANKI= = O F F I C E R S JAMES E. HAMILTON, Chairman Executive Committee S. E. COQUILLETTE, Chairman of the Board JOHN T. HAMILTON II, President H. N. BOYSON, Vice President MARK J. MYERS, Vice President GEORGE F. MILLER, Vice President and Trust Officer MARVIN R. SELDEN, Vice President FRED W. SMITH, Vice President R. W. MANATT, Vice President L. W. BROULIK, Vice President PETER BAILEY, Cashier R. D. BROWN, Assistant Cashier O. A. KEARNEY, Assistant Cashier STANLEY J. MOHRBACHER, Asst. Cashier EVERETT C. PRATT, Assistant Cashier C. F. PEREMSKY, Assistant Cashier VICTOR W. BRYANT, Assistant Cashier JAMES E. COQUILLETTE, Assistant Cashier Cedar Rapids Iowa Member Federal Deposit Insurance Corporation Northwestern Banker, published monthly by the Northwestern Banker Company, at 527 Seventh Street, Des Moines, Iowa. Subscription, 35c per copy. $3.00 per year. Entered as Second Class Matter January 1, 1895, at the Post Office at Des Moines, Iowa, under Act of March 3, 1879. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis n BARTOW MANSION 0 fa 7 ra t7 OLF packs ranged the woods and the rocks swarmed with rattle snakes 300 years ago in the region where the Bartow Mansion now stands in New York’s Bronx County. Harried settlers offered a bounty of twenty shillings “ for every grown wolf killed by a Christian but only half as much when it was de stroyed by an Indian” and decreed that “ one day every spring be improved for the destroying of rattlesnakes.” Even more deadly than these natural enemies of man were hostile Indian tribes. To this harsh country came Anne Hut chinson, vainly seeking a “ Land of Peace” after religious persecution, but marauding savages killed her and all her family except for one little girl. Accord- W ing to legend, this sole survi vor of the mas sacre was taken by the Indians and later m ar ried a chief. Dining room, like the home's exterior, follows Grecian style o f architecture. Today, in a com m unity of suburban homes and This third Lord’s grandson, John Bar apartment houses, modern parkways tow, bought the manor house in 1790. have replaced the trails of the long-van Aaron Burr, who had married the former ished Indians. In the words of an old Theodosia Bartow, was one of many chief, “Your Empire State was once famous guests entertained there by the laced by our trails, trails that we have wealthy and influential proprietor. In trod for centuries, trails worn so deep 1836 John’s grandson, Robert Bartow, by the feet of the Indian that they be acquired the estate and built the present came your roads of travel.” house which remained in the family’s In Pelham Bay Park in the northern possession till 1888 when New York most limits of New York City the Bartow City purchased it for park development. Mansion marks, in a figurative sense, the Restored and refurnished in the orig end of a trail leading back to many fam inal period through the efforts of the ilies who figured prominently in the International Garden Club, the beauti region’s history, principally the Bartows fully proportioned mansion now stands and the Pells. as one of the few remaining links with In 1654 Thomas Pell purchased 9,000 the region’s past. acres from the Indians and became first The Jiome, through its agents and Lord of the original Manor of Pelham, brokers, is America's leading insurance comprising the present Pelham Bay Park protector of American Jdomes and the and many nearby towns. Tradition has it that the deed of purchase was signed jHomes of American Industry. by the Indian chief who married Anne Hutchinson’ s daughter. A granddaughter of this union later married Thomas Pell, third Lord of the Manor, from whose eleven children many of the Pell family N E W Y O R K trace their descent. AUTOM OBILE MARINE INSURANCE FIRE * THE HOME * Graceful staircase, one of many inventive details. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 4 ^LitTOliß|bs S^vinßsl^ssbook Machii m PROVIDES ALL THESE IM PO RTANT e / ADVANTAGES NEAT, LEGIBLE RECORDS — M achine-posted passbooks and ledgers increase accuracy and neatness for customer and bank. MAXIMUM SPEED — Passbooks only are posted at the w indow . Y ou do not do your bookkeeping on the customer's tim e! FLEXIBILITY — Permits a choice o f ledger posting plans. N o other method o f handling savings accounts can match the mechanized speed, efficiency and economy of Burroughs Savings Passbook Machines. Here again is p ro of of Burroughs alertness to modern banking needs and Burroughs leadership in ma chines and methods If you want to give your savings account customers faster, better service and improve your internal con trol, be sure to get the full story on the new Burroughs Savings Passbook Machine. N o r t h w e s t e r n B a n ke r, F e b r u a r y , 1948 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis COM PACTNESS, EASE OF O PERA TIO N — Requires a m ini mum o f space . . . expensive cage alterations are not necessary. A nyone can learn to operate it with a few minutes’ instruction. BETTER CONTROL — Insures that bank’s and customer’s records are in agreement, and provides better audit control. LOW COST — Low purchase price and low maintenance expense m ake it economical to buy and use. WHEREVER T H E R E ’S BUSINESS T H E R E ’S Burroughs o W hen a banker thinks about checks in terms of quality and functional value heis naturally attracted to La Monte Safety P a o e r- a product which has served the ....... ,, it has become Paper « H nation so long an£t we" wledged th e in its e ader W fs. if : WÈËÈ •K; ,,, ' , . SAFETY PAPER FOR CHECKS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis BRCß cvrv GEORGE LAMONTE & SON, NUTLEY, NEW JERSEY JMWÍ513-1 c r io N kB __ S » ’ OlSM' 1 T*1** fa* D noli*1 ciü O] con*TBU coçSfiBiî rtOHO^g . . fiffi THQUSiSB-^ N o r t h w e s t e r n B a n ke r, F e b r u a r y , 1948 6 ★ ★ Use the in Chicago FOR W ORLD-W IDE BANKIN G On every type o f foreign trade and finance,, including the rem ittance o f funds, the sale o f com m ercial and travelers’ letters o f credit, the handling o f foreign collections, and the purchase and sale o f exchange, the officers o f our Foreign Banking D epartm ent are prepared to render advice based on long experience. A com petent and thoroughly trained staff will be pleased to discuss your particular foreign trade problems with you and handle your international transactions. Calls or correspondence are invited. The First National Bank of Chicago Building with Chicago and the Nation Since 1863 ★ N o r t h w e s t e r n B a n ke r, F e b r u a r y , 1948 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ir 7 /M okOAr CÜXM O jCU The National 2000 Proof Machine literally locks out errors! If the operator makes an error in recording an amount — or if the depositor has erred in adding his deposit ticket — the machine locks automatically! On depressing the error key, the amount of the error is automatically printed on the master tape, and the cor rection is made immediately. No other machine has this feature! This is typical of the superior adaptation to actual banking needs that will be found in all National m echanized accounting systems expressly designed for banks. Ninety-four of the one hundred largest banks in the United States use Nationals, as do thousands of smaller ones. There’s a National mechanized account ing system for ev ery need of ev ery department of ev ery bank — large or small. Read about them in the hand some, new booklet shown. A new, illustrated b ooklet of some 60 pages de T H E https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N A T I O N A L C A S H scribes the services of each of the machines in the National line. Shows how they can speed the work in ev ery department of your bank. Ask your National representative to bring you your copy. You’ll find it both informative and helpful, and you’ll want to keep it in a convenient place for reference when accounting problem s arise. The National Cash Register Com pany, D ay ton 9, Ohio. Sales and Service Offices in over 400 cities. R E G I S T E R C O M P A N Y N o r t h w e s t e r n B a n ke r, F e b r u a r y , 1948 Senior Credit Analysts Credit Information for Chase Correspondents As a part of our service to correspondent banks we endeavor at all times to furnish complete and accurate credit infor mation both for their own use and to assist them in answer ing their customers’ inquiries. Our extensive facilities, both foreign and domestic, enable us to give prompt attention to the credit inquiries Credit Departm ent Management of our banking friends. Among other services to correspondent banks are: Issuance of letters of credit Safekeeping of securities Collection of checks, drafts and other bank documents Transm ission of funds abroad and shipment of currency Information and advice regarding banks’ investments Participation in local loans when desired by correspondents Central Index {contains 2,000,000 cards} Performing a wide range of incidental services TH E CH ASE N A T IO N A L O F THE C IT Y O F N E W BANK YORK Member Federal Deposit Insurance Corporation C redit Investigators N o r t h w e s t e r n B a n k e r, F e b r u a r y , 1948 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Ih m r E d ito r DES M OINES O ldest Financial Journal West of the Mississippi The following letters were received from Northwestern Banker readers. Your views and opinions on any sub ject will be gladly published in this column. "Thought Inspiring Editorials" “ The N o r t h w e s t e r n B a n k e r has .just reached me in my retirement in Pasadena, California. In order to qualify as having some knowledge of the region covered by it, I might add that I have spent about 10 years as deputy superintendent of banking in the Iowa Banking Department and 10 years in Washington, D. C., helping to liquidate the collateral held by the War Finance Corpora tion and the Reconstruction Finance Cor poration when the borrowing institutions had failed. “ On receiving this January number of the N o r t h w e s t e r n B a n k e r , I turned at once to page 14 ‘Across the Desk from the Publisher’ and read your five open letters addressed to prominent thinkers on the affairs of our nation in which you referred to their salient conceptions as expressed by them on the way of life in these United States. “ I know o f no way to better emphasize and impress the thoughts o f these men on the average American citizen than to set out what they have expressed and then add very aptly as you have done, your own ideas o f the direct application o f these subjects. “ I have occasionally taken the liberty of passing some of your ‘open letters’ on to the persons addressed and to others in regions outside of the area covered by the N o r t h w estern B anker. “ I congratulate you on the thought in spiring influence of your editorials.” W. 0. Seed, 122 North Orange Grove Avenue, Pasa dena 2, California t 53rd Year • No. 727 IN THIS FEBRUARY, 1948, ISSUE EDITORIALS A cross the Desk from the Publisher.......................................................... 10 FEATURE ARTICLES D ear E ditor ........................................................................................................ F rontispage— George W ashington _____________ __________ __________ W hat Can Y our D irectors Do to Help Y our Bank Make M oney?..... ...................................................................................................M aple T. H arl W hat Shall We Do A bout Livestock Loans?— N orthwestern Banker Survey............................................................ News and Views o f the Banking W orld ....................... Clifford D e P u y A bout Bankers You K now — Clive T. J a ffra y ........................................... F irst National Bank o f Chicago Holds Correspondent Conference. Story and P ictu res....................... ............................................................. 18, Is a Signed Agreem ent Void When It Has Not Been Read?— Legal.. 9 13 14 15 16 17 19 20 BONDS AND INVESTMENTS Increased Investment Return Seen as Top-G rade Bond Earnings R ise................................. ....................................... ........ Raym ond T rig g er 27 INSURANCE Group L ife Insurance Helps Individual Sales....Edwin C. M cDonald 31 STATE BANKING NEWS M innesota News .......................................................................... Tw in City N ew s......................................................................................... South Dakota N ew s............................ ...... ......... ...... .................................. . Sioux Falls N ew s......................... North Dakota N ew s............................................................................ Nebraska News ............................. ..................... .................................... ......... Omaha News ........................ Lincoln Locals .................. ....... ........ .............................. ........... ........ . Iow a News ...................... .......... ......... ........ ................. .......... ....... ...... ........... Des M oines N ew s.... ...... .............. .......... .............................................. . Sioux City N ew s..... ............... ....... ............................... ......... .................. Conventions .................... 35 37 41 41 43 45 47 49 53 60 62 64 IN THE DIRECTORS' ROOM "One of the Finest" “ The N o r t h w e s t e r n B a n k e r is one of the finest of the many banking publications which I see in the course o f a year.” C. A. Hemminger, Assistant Cashier. American National Hank <$• Trust Co., Chicago, III. "Are Bankers Afraid?" “ Bankers are casting reflections on their ability to operate banks due to the fact that the public cannot understand why one bank charges a service charge for services and another bank in the same area does not. Are bankers afraid of the public? (Turn to page 64, please) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Short Stories to Start the D ay R igh t.......................................................... 66 NORTHWESTERN BANKER 527 Seventh St., Des Moines 9, Iowa, Telephone 4-8163 CLIFFORD DE PUY RALPH W. MOORHEAD Publisher Associate Publisher HENRY H. HAYNES BEN J. HALLER, JR. MALCOLM K. FREELAND Editor Associate Editor Associate Editor ELIZABETH COLE HAZEL C. HADLEY SADIE E. WAY Advertising Assistant Auditor Circulation Department PAUL W. SHOOLL JOSEPH W. FRANKS Field Representative Field Representative NEW YORK OFFICE Frank P. Syms, Vice President, 505 Fifth Ave., Suite 1806 MUrray Hill 2-0326 DE PUY PUBLICATIONS: Northwestern Banker, Underwriters Review, Des Moines Insurance Directory, Iowa-Nebraska Bank Directory. N o r t h w e s t e r n B anke r, F e b r u a r y , 1948 10 Across the Desk From the Publisher CbsLcüi Q o h n K . W x J ís u l : Presiden t, Continental Bank and T ru st Com pany o f N ew Y ork In these days when there is so much talk about how to slow down inflation and get our country back on a sound economy, the N orthwestern B anker was very interested in reading your state ment presented at the annual meeting of your stockholders in which you said: “ The nation’s production machine is geared for an output of unprecedented proportions in 1948. To operate this machine at capacity will require adequate labor, raw materials, and credit. The problem of producing on such a vast scale without creating further inflation constitutes a challenge to government, industry, and labor, but the objective can be accomplished if it is ap proached with courage, wisdom, and a real sense of responsibility by all concerned for the welfare of the country as a whole. Sound measures to combat a temporary inflationary trend are de sirable, but hasty, experimental action, based on untried economic theories, could aggravate the present problem, or even produce a severe re action in the form of a deflationary movement. “ The nation’s commercial banking’ system is as anxious as any other group to see a stable and healthy economy. But any attempt to restrict its ability to provide ample credit for sound, producN o r t h w e s t e r n B a n ke r, F e b r u a r y , 1948 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis tive purposes would be completely ineffectual in checking inflation, especially while government lending’, direct and indirect, continues, and as long as the government retains and attempts to acquire additional broad powers over our economy. In fact, such action might paralyze our production ma chine, and its cumulative effects could set in mo tion a disastrous, deflationary trend. “ Natural economic forces (continued high pro duction, fair prices, and cooperation between capital and labor) could stabilize the post-war period, but only if government adopts a sound and conservative fiscal policy, free from inconsisten cies and confusion as to objectives.” We heartily endorse your statement, Mr. Mc Kee, when you emphasize that any attempt to prevent banks from providing ample credit for sound and “ productive purposes,” would be in effectual especially in checking inflation while government lending both “ direct and indirect” continues. Every banker and businessman knows that dur ing the last 12 to 15 years the government has been the greatest competitor of the banking busi ness in the United States, yet at the same time, it expects the banks to carry the real load of government financing. What is needed today more than ever before, is sound thinking and sound business practices on the part of our own government, so that we can keep business on a sound and even keel. (D qjcUl , V Y l. $ . S ^ ijm c ia L : M em ber F ed era l R eserv e B oard o f G overnors Since the policies as suggested by the Board of Governors of the Federal Reserve System have a very direct bearing on the financial institutions of the United States, we read with a great deal of interest your discussion of “ Our Monetary and Credit Problems Today” in which you discussed some of the problems facing the Board regarding inflation. There were two things about your speech which we noted with considerable interest, (1), that the public debt was one of the major factors in the present inflation, and (2), that you were not sug gesting that the Board keep reaching out for more power and more controls. Since the recent drop in government bonds, and your pegging at 2% per cent, of the long term government securities, bankers have been asking what of the future as it relates to their own government portfolios. In discussing the government’s position as a borrower, you said “ The Government is no longer merely another borrower in the market. It is by far the largest borrower. The Federal debt ac 11 counts for nearly three-fifths of the entire in debtedness of the country, and interest on the debt is a major item in the Federal budget, amounting to more than 5 billion dollars a year. In this situation, special arrangements have had to he made for selling and managing the public debt. The Treasury and the Federal Reserve work closely together in issuing, retiring, and refunding the debt, This greatly increased im portance of the public debt is one of the major factors in the present inflation. ‘ ‘ Reserves are the heart of commercial banking, and control over commercial bank credit has tra ditionally been exercised by control of these re serves. Three techniques have been used to exer cise this control: (1) varying the discount rate, or the rate of interest at which member commer cial banks may borrow from the Reserve Banks : (2) open market operations; or the buying and selling of Government securities by the Reserve System: and (3) varying the level of reserve re quirements, that is, the amounts which member banks deposit with Federal Reserve Banks as legally required reserves. It is our belief, Mr. Szymczak, that the banks of the United States now have enough Govern ment controls and regulations and that they do not need any more from Washington or the Fed eral Reserve Board, although your “ demoted” friend Marriner Eccles seems to think otherwise. It is our National debt and not increased bank loans which are causing inflation and we are sure that the banks of the United States can be counted upon to continue on the conservative side in handling any of their local credit situations. In the meantime, Mr. Szymczak, you might sug gest to H. T. in the White House that he cut 5 billion dollars off our Government expenses and that would really help to stop further inflation. C d su vt, (ü íU m m l 7 1 . ¿n A jU w n L : President of the Irving Trust Company, New York In the last few weeks we have been reading many annual reports of the financial institutions of the United States, and it occurred to the N orthwestern B anker that the charts which you presented in your report showing how your “ dol lar income” was derived and also indicating how your expenses were divided were very interesting ly and graphically portrayed. It is the belief of the N orthwestern B anker that the more attractive and simplified bank state ments can be made, the better it will be for the banks, for their customers, their stockholders and the general public. Perhaps the time will come when the labor union https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis organizations of America will issue financial state ments so that the public can know as well, what goes on “ behind the scenes” of their organiza tions, as they now know about banks and other business corporations. We have reproduced the chart showing “ your income dollar” and how it is divided and as you point out in your report: “ The chart shows that out of every dollar of income received, 44c was derived from Interest and Dividends on Securities, 35c from Interest on Loans, 20c from Fiduciary Fees, Commissions and Other Income, and only a WHERE THE INCOME DOLLAR CAME FROM H O W THE INCOME DOLLAR W A S USED Salaries and Wages Dividends negligible amount from Net Securities profits, Re coveries and Miscellaneous Credits. The chart also shows that out of every dollar of income re ceived, 35c was paid in Salaries and Wages, 19c for Other Operating Expenses, 9c for Taxes, 4c for Deposit Insurance, 4c was transferred to Re serves, 9c was added to Undivided Profits, and 20c was paid in Dividends to stockholders for the use of their capital. ’ ’ With deposits of over $1,072,000,000, an operat ing income of $19,660,000, operating expenses of $13,355,000, and operating profits of $6,305,000 for 1947, we want, to congratulate you on this show ing, Mr. Enstrom, and especially on the simplified manner in wrhich you have presented your figures. N o r t h w e s t e r n B a n ke r, F e b r u a r y , Ì 948 12 A Complete Correspondent Service Rendered in an Efficient and Friendly Manner CENTRAL NATIONAL BAN SB w Bi B BBL own B TB A^BI B B B Bi A^BI BB B r BB and Trust Company • Des Moines Member Federal N o r t h w e s t e r n B a n ke r, F e b r u a r y , J 948 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis it I n s u r a n c e C o r p o r a t i o n https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 13 N o r t h w e s t e r n B a n ke r, F e b r u a r y , 1948 14 W h at Can Your H irectors Ho to H elp Your Hank M a k e M o n e y ? What Directors Should Do to Operate a Sound Institution By MAPLE T. HARL, Chairman Federal Deposit Insurance Corporation Washington, D. C. HAVE no desire to list a detailed recital of the law with respect to the duties and responsibilities of a bank director. I cannot urge too strongly, however, that you become familiar with the laws applicable to your bank. I am more concerned with the posi tive, than with the negative, aspects of the director’s responsibilities. A di rector is not chosen because the stock holders believe he will observe the law and avoid breaking it, but be cause they believe he will make a posi tive contribution to the welfare of the bank, its stockholders and depositors, and will enable it to serve the com munity more adequately. He should be a man with broad ex perience, s o u n d judgment, mental alertness, a judicial temperament, staunch integrity, and a keen interest in the public welfare. If he has all these qualities, and if he, then, in the best sense of the words, lives up to those qualities which caused his selec tion as a director by his fellow stock holders, then it must follow, as the night follows the day, that he will per form his legal and his moral responsi bilities completely. I Responsibilities Let us examine a few of his respon sibilities more specifically. 1. It is his duty to direct the affairs Digitized forNFRASER o r t h w e s t e r n B a n k e r, F e b r u a r y , 1948 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis of the bank, for the directors are the bank. Even though they meet only periodically, and even though they serve only on a part-time basis, they are the continuing representatives of the stockholders, responsible to the stockholders, to the depositors, and to the general public for the proper ful fillment of banking functions in the community. 2. Since the directors perform their functions on a part-time basis, one of their most important duties consists of the selection of full-time executive officers and employes, and the estab lishment of sound personnel policies. It is no mere routine that the stock holders meet annually to elect the directors and that the directors there after choose the officers and employes. It has often been said that banks do not fail, that it is the bankers who fail. We can go further and say that A b a nk d i r e c t o r sh o uld — 7. D i r e c t a f f a i r s o f th e bank. 2. S e l e c t p e r s o n n e l c a r e f u l l y . 3. C a r r y a d e q u a t e fi d e lit y c o v e r a g e. 4. P r o v i d e s p e c i a l i z e d tr a in in g . 5. M a in ta in sound o p e r a t i n g p r in c ip le s . 6. E s ta b lis h loan and in v e s tm e n t p o lic i e s . 7. S u p p l y sufficient lo c a l financing. 8. P r o v i d e c i v i c l e a d e r s h i p . when a banker fails, that failure is usually the moral, if not the legal, re sponsibility of the directors. When a banker fails, the directors have usually selected personnel un wisely, established an inadequate per sonnel policy, or have not acquainted themselves with the condition and operation of the bank. Carry Fidelity Bond 3. Then, since your selection may not be perfect, carry adequate fidelity coverage. Practically every b a n k which the corporation has been com pelled to aid financially in recent years had suffered a shortage as a result of an employe’s or officer’s act. In prac tically all of these instances, the fidel ity insurance carried by the bank was inadequate. As you know, the Fed eral deposit insurance Taw confers upon our corporation the power to re quire individual banks to secure ade quate coverage. As you can imagine, this is a power which we do not wish to be compelled to exercise. However, we do urge you most strongly to carry adequate fidelity bonds in order to minimize the effect of errors in the selection of personnel. The “fair” coverage recommended in the sched ules of the American Bankers Asso ciation constitutes a desirable mini mum in most banks. (Turn to page 17, please) m ÊÈÈÈÊÊKÈÈÊÈ ’ ■■*■$"* -*> 4 '“ '' ' • q^sî [ ] S a » * * * .~' j T T m ¿ i J Ä t f r W " " ” A View Down the Cattle Alleys of the Union Stock Yards, Chicago IV/im / Shall W e Ho A b o u t liv e s to c k L oa n s’/ Bankers in Large Marketing Centers Give Their Views on Loans as Related to Present High Prices A NORTHWESTERN BANKER SURVEY ITH cattle prices hitting the mid dle and high twenties in the major marketing centers, bankers the Middlewest who make feeder loans, and that includes almost all the bankers in the smaller towns and . cities, are wondering what the future holds for livestock prices, and won dering how far they can go safely in financing the feeding operations of the farmers in their communities. In an effort to bring to our readers an answer to the livestock loaning question, we have asked a number of bankers in the larger marketing cities to give us their opinion on the subject, and they have responded with inter esting and helpful information. Their answers might be summed up in the statement that about all anyone in the banking business can do today in servicing their farmer borrowers is to use his judgment in making livestock loans, and require the proper margins, and not try to look too far into the W https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis future. Follow the price and economic trends closely, and conduct the bank ing in business accordingly. Here is what bankers in marketing centers say: I. E. Bennett, vice president, Live Stock National Bank, Chicago: “ The inquiry as to what should be our attitude toward financing livestock feeding at present unprecedented cost levels for feeder stock and grain is a natural and pertinent one. Are live stock prices, which have already far exceeded anything that seemed prob able a year ago, now at the peak and about to start down the hill, or is there another ascent ahead before they cross the great divide? We have wit nessed the recent rather disturbing setback in middle grades of fat cattle, many of which came to market at a loss to the feeder. Is this only a tem porary fluctuation or does it mark the beginning of a downward trend? “Events now in the making hold the answer to these questions. What is done about aid to war stricken coun tries and political and labor develop ments on the domestic scene will have a direct bearing, as will also the out come of this year’s crops both at home and abroad—all factors that cannot be known positively at this time. Grain prices and livestock prices are closely tied together, and a major factor in advancing livestock prices has been the rapidly advancing grain markets during the past year. “From a supply and demand stand point, the livestock industry appears on a sound basis. Numbers are down substantially compared to the human population, meat is more popular than ever before in our diet, and the tend ency to market at light weights has reduced the pounds of finished product per animal. There is indeed little in the picture to indicate that the sup(Turn to page 32, please) N o r t h w e s t e r n B a n ke r, F e b r u a r y , 1948. i 16 News und Views OF THE BANKING WORLD By CLIFFORD DE J OHN C. WRIGHT, president of the La Salle National Bank of Chicago, has announced that their bank has voted to increase the bank’s capital from $600,000 to $1,500,000 through is suing 18,000 shares of $50 par stock in addition to the 12,000 shares now out standing. The World Bank operations were on the black side for the first time dur ing the final quarter of 1947. Income exceeded expenses and “set aside” for a special reserve fund by $1,317,610, which was enough of a net to wipe out the previous quarter deficit. The bank statement for the final quarter of 1947 showed income of $4,513,694 from charges on the $497,000,000 in loans it has granted. Total subscriptions to the bank by member countries now amount to $8,263,100,000. If we think we are having higher prices in this country—and we are— than we had a few years ago, we are still pretty well down the list com pared with other countries as indi cated by the “Price Increases since 1939” or 9 years ago, and which an economist has recently pointed out are as follows: China . Italy France Finland Turkey 8,900% 5,090 760 550 315 Mexico U. S. ... Canada Australia 138% 104 66 47 Since spring is not too far off, we hope, we were interested in reading a story by Bennett Cerf in the Satur day Review of Literature telling about one of the most famous golf shots he ever saw. “The greatest golf shot I ever saw was made by Publisher Al fred Knopf at the Hollywood course in Deal. Knopf’s ball was buried in the side of a ditch near the 14th green. He elected to play it. The mud fell in all directions, the ball fell in the cup, and Mr. Knopf fell in the ditch.” Julian B. Baird, president of the First National Bank in St. Paul, re ports net operating earnings after Fed eral and State taxes of $1,431,683 in 1947 as against $1,350,264 in the pre vious year. The 1947 earnings were equal to 6.83 per cent on the average capital N o r t h w e s t e r n B a n k e r, F e b r u a r y , 1948 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PUY, P u b lish er funds employed during the year and equal to 47 cents on each $100 of re sources employed. “Dividends were paid in the amount of $720,000,” Mr. Baird reports, “or at a rate of 12 per cent on the Capital Stock and equal to 3.4 per cent on the a v e r a g e stockholders’ investment amounting to $20,963,000. The bank has maintained an uninterrupted divi dend record for 83 years. stock banks in the middlewest and isheaded by a group of men who know the live stock business from begin ning to end. It is a member of the First National group at St. Joseph and officers include George E. Porter, chairman: Joseph A. Greenfield, presi dent; Thos. J. McCullough, vice presi dent; M. E. Blanchard, cashier; E. J. Komer, assistant cashier; and H. H, Broadhead, Jr., assistant cashier. March 4th is the anniversary day. Frank E. King, president of the California Bank of Los Angeles, re ported net current operating earnings of $1,510,000 for 1947 as compared with $1,204,000 for the previous year. Deposits at the end of 1947 were $452,165,443, a gain of $9,803,000 over the previous year. Capital stock, surplus and undivided profits now total $17,203,000. Maxwell Carlson has been elected president of the National Bank of Commerce in Seattle at the age of 42. Mr. Carlson is one of the youngest men in the United States to be presi dent of a $350,000,000 institution. JU L IA N B. BAIRD “ High level of business activity in 1947” “Loans and discounts reached the record total of $102,537,200 at the year end, an increase of $20,000,000 over the previous year end. This increase reflects the high level of business ac tivity in our trade area and notably the large volume of grain and other agricultural products moving to mar ket at high prices. “The bond account is carried on the year-end statement at $125,917,692, of which $116,426,976, or 92 per cent is in U. S. Government obligations. Of the Government obligations, 86 per cent matures, or has an optional date, within 5 years. “After making provisions for appro priate reserves, $253,629 was added to undivided profits for the year, which made the total capital structure of the bank $21,035,390 as of December 31, 1947.” The First St. Joseph Stock Yards Bank of South St. Joseph, Missouri, is this year celebrating its fiftieth anniversary. This is one of the outstanding live Willis E. Morgan, formerly assist ant sales manager of the Burroughs Adding Machine Company, of Detroit, has been named sales manager suc ceeding Ray R. Eppert who was made vice president in charge of marketing. Thomas B. McCabe, former Chair man of the Philadelphia Reserve Bank will be the new Chairman of the Fed eral Reserve Board of Governors to take the place of Marriner S. Eccles who has been chairman since 1935. Mr. Eccles will remain as vice chair man although his “demotion” is quite a blow to his prestige. Many bankers have felt that Mr. Eccles was too much of a New Dealer both in his political and economic ideas and are glad to see him “reduced in rank.” Mr. McCabe served during the war as an assistant to the Secretary of State and as an Army-Navy liquidat ing commissioner. In 1916 he joined the Scott Paper Company of Chester, Pennsylvania, as a salesman and 11 years later became its president. Mr. Eccles’ “demotion” also indi cated a victory for Secretary of the (Turn to page 65, please) 17 A b o u t H auliers You K n ow HOW YOUR DIRECTORS CAN HELP YOUR BANK (Continued from page 14) When you have selected your offi cers and employes well, urge them to equip themselves for advancement through specialized training. There are excellent facilities a v a i l a b l e through the American Institute of Banking, the ABA-sponsored Graduate School of Banking at Rutgers, the Central States School of Banking at the University of Wisconsin, and the Pacific Northwest School of Banking at the University of Washington. 5. If the part-time directors of the bank are really to direct its affairs, they must be acquainted with them sufficiently to establish and maintain sound policies and principles of opera tion. There are two recognized meth ods of accomplishing this, both of which are essential: A. A continuing control over the chief function of any bank, namely the loan and investment function; and, B. A periodic review of accomplish ment to determine whether estab lished policies have been followed, and whether they are effective. Let us consider the latter first. It is obvious that a director cannot know how the bank is functioning unless he attends meetings of the board of di rectors regularly. A bank which elects a director who does not actively participate, but mere ly lends his name for so-called “pres tige” purposes, is making a serious mistake. A director, who permits his election in such a manner and feels that he is making a contribution to the bank, may have a rude awaken ing. For such action he cannot evade or avoid his other responsibili ties. Instead, by continued failure to attend board meetings, he runs the risk of a suit for damages resulting from his negligence. 4. Periodic Audits We should recognize the natural tendency of directors to rely in ex aminations upon the directors who are full-time officers of the bank. To avoid the hazards inherent in such a proce dure and to complement the qualifi cations of the directors, I recommend most strongly that the board also have a recognized outside certified public accountant prepare an audit periodi cally. With the detail work thus com pleted, the board can devote its limited time to a study of the results of the examination, to a consideration of its recommendations, and to a determi nation of appropriate courses of action. The reports of examination made by your department of banking and by (Turn to page 28, please) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis CLIVE T. J A F F R A Y Chairman of the Board, First Bank Stock Corporation, Minneapolis ‘ ‘ An active banker at 82” NE ol the most outstanding careers of modern banking was started inauspiciously 67 years ago when Clive T. .) affray began his apprentice ship at the age of 15 with the Merchants Bank of Canada. Mr. Jaffray is better known today as chairman of the board of First Bank Stock Corporation in Minneapolis, a director for over 50 years ol the First National Bank in that city and one of the most enthusiastic sportsmen in the country. At the age of 82 years lie still reports to his office in the bank at 8 a. m. each morning for a full business schedule. The First National Bank, of which he was presi dent for seven years, has just completed another successful year, with de posits of $372,735,406. O Clive Jaffray was born in Berlin, now Kitchener, Ontario, on July 1, 1865. In 1887 he left the Merchants Bank of Canada to join the Northwestern National Bank of Minneapolis. Eight years later he resigned his assistant cashier’s position there to become cashier of the First National. Deposits of the latter hank at that time were $2,393,000. He became a member of the board in 1898. Mr. Jaffray then was elected vice president in 1905 and succeeded to the presidency in 1917. Seven years later he resigned this posi tion to become president of the Minneapolis, St. Paul and Sault Ste. Marie Railway. He retained his directorship on the First National board, however, and last month was honored at a dinner on completion of his 50th year of service to the hoard of directors. In 1929 the First Bank Stock Corporation was organized with Mr. Jaffray (Turn to page 64, please) Northwestern B a n ke r, F e b r u a r y , 1948 18 Bentley G. McCloud, president o f the First National Bank o f Chicago, visits with General Robert E. Wood (righ t), chairman o f the board o f Sears, Roebuck & Company, and a director of the First National Bank. General W ood was the Conferencedinner speaker. W . T. Payne (le ft) cashier o f the State Bank of Herscher, Illinois, talks to John J. Anton (center), and Thomas J. Nugent, both vice presidents o f the First National Bank of Chicago, and both officers in the banks and bankers division. First N ational Bank o f Chicago B old s C orrespondent Conference 450 Bankers from 32 States in Attendance ORE than 450 bankers from 32 states came to Chicago last month to attend a conference of bank correspondents by the First National Bank of Chicago. As indi cated on the large map of the United States, which was part of a display arranged by the First National, bank ers attended from Rhode Island to California, and from Florida to Idaho. Among the larger groups listed by states were the following: Iowa, 95; Indiana, 92; Michigan, 43; Illinois, 39; Wisconsin, 34; Minnesota, 31; Nebras ka, 19; North Dakota, two; and South Dakota, two. The conference was one of the largest meetings ever organized M by a metropolitan bank to develop an even closer personal relationship with its correspondent banks, and to render them a constructive service by a prac tical discussion of mutual problems. To attend the four panel discussions of banking problems, the bankers were divided into four groups for the day and one-half period of meetings. Each group met in the same room, with the speakers moving from group to group. All discussions were led by officers of the various departments of the First National Bank. The panel discussion on Federal In come Taxes was led by Charles Z. Meyer, comptroller, and Forrest G. Paddock, assistant comptroller. Aus tin Jenner, vice president, and Lewis Miller, assistant vice president, led the panel on Government and Municipal Securities. Internal Bank Operations panel was led by C. Edgar Johnson, vice presi dent; C. Edward Dahlin, attorney; Howard S. Alsip, assistant cashier, and Alfred Langenbach, assistant cashier. The panel on Foreign Banking Trans actions and Safe Deposit Operations was headed by Harry Salinger, vice president; C. Edward Dahlin, attorney; R. Kenneth Newhall, assistant cashier; Guy A. Crum, assistant cashier, and (Turn to page 42, please) At the left, below, is a group of Minnesota bankers who attended the Conference o f Bank Correspondents; at the right, the First National Bank Choral Club, an organization of 90 voices. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis |i ! — J; : ..... " V ". ."i ■ ■■ : I . ■ ' - 1 . - ***»« -li 35 j A : #‘ : %.=T- ' : = " -- .; = i » ■ : -§=•' ,- % ;i MiKWISSl v'ÿ«;îi L eft to right— R. L. Stout, president First National Bank, Tekamah, Nebraska; E. W . Lyman, vice president United States National Bank, Omaha; and T. H. Wake, president Jones Na tional Bank, Seward, Nebraska. L eft to Light— E. D. Saltzman, president First National Bank, Bismarck, North Dakota; LeRoy Abbott, viee president Guardian State Bank, Alliance, Nebraska; and Fred R. Orth, president First National Bank, Grand Forks, North Dakota. ?! . 3./ a l l l ■3.;.3:3 V JAgggvg:'v3 .. ..... MS lÉ m l i l l i f iiii n i l ■ : m m f i i - -, - e , 33" I l l i l l . ■ i m ■ WÈÈÈÊÈÊÊÈ J iBf\| ^ M i ■ A ’> I ^ »1 31 1 Hmm p v mmm f M i ■ : - 1. B S i l l i WÊSÊIÈmÈ0 mmmm, m m m \Â S p ï p ••:* m L eft to right— A . F. Agena, cashier State Savings Bank, Baxter, Iow a; P. G. Folvag, cashier Benton County Savings Bank, Norway, Iow a; A. J. Bird, cashier Citizens State Bank, Belle Plaine, Iow a; and Verne Bartling, assistant vice president First National Bank, Chicago. L eft to right— Douglas G. Swale, viee president First National Bank, Mason City; M. A. Arneson, president Clear Lake Bank & Trust Co., Clear Lake, Iow a; and J. F. Kennedy, president First National Bank, New Hampton, Iowa. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis n -Left to right— V. H. Reid, president and cashier Security State Bank, Hubbard, Iow a; Ernie Hultgren, First National Bank, Chicago; H. S. Lekwa, vice president and cashier Ackley State Bank, Ackley, Iow a; and Vic von Meding, assistant cashier First National Bank, Chicago. L e ft to right— E. W . Collins, viee president First and Am eri can National Bank, Duluth; H. F. Nichols, president First Gales burg National Bank, Galesburg, Illinois; A . E. Hanstedt, assist ant cashier Gillet State Bank, Gillet, W isconsin; Percy Smith, president First National Bank, Rochester, Indiana; Hugh A gri cola, president First National Bank, Gadsden, Alabama; and Mel H. Thies, assistant vice president First National Bank, Chicago. ■ -*■ \ m tmm J1 ¿3 20 LEGAL Is A Sif f i i e i i Agr ee Void W hen Mt U ns A o l ISeen Etend? Q . As an incident to a transaction in Iowa several years ago involving the Home Owners Loan Corporation a creditor of a mortgage debtor signed an agreement to accept certain bonds in payment of his indebtedness. Later on he sought to assert that he had not read the agreement and that it there fore was not binding on him. Should he be sustained legally in such a con tention? No. The Iowa Supreme Court in a recent decision involving similar facts held that a creditor who allegedly signed an agreement with the Home Owners Loan Corporation to accept bonds in payment of his indebtedness without reading or knowing the con tents of the agreement was guilty of negligence and could not avoid the effects of the agreement because of his failure to read it. Illinois has held similarly in a like case. Q . Abelson, a banker, was also an insurance agent. He wrote a policy for a friend of his binding his company to pay the entire loss in the event of the destruction of certain property. The friend also purchased similar in surance from another covering the same contingency as to the same prop erty. A loss occurred. Abelson’s com pany paid off. Could Abelson’s com pany recover a ratable proportion of the amount paid by it from the other insurance company, as a general rule of insurance law? Yes. It is a well-known principle of the law of insurance that if several insurers bind themselves to pay the entire loss in case of the destruction of the subject of the insurance, and one insurer pays the whole loss, the one so paying has a valid right against his co-insurers for a ratable propor tion of the amount paid by him, be cause he has paid a debt which is equally and concurrently due by the other insurers. Q . Collins executed in favor of Mapes a $5,000 negotiable promissory note, payable, with interest, at the rate of $1,000 per year. Mapes negotiated N o r t h w e s t e r n B a n ke r, F e b r u a r y , 1948 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis This and Other Timely Legal Questions Are Answered by the LEGAL DEPARTMENT the note to his bank three years later at a time when one of the installments was in default. At the time of the ne gotiation the bank knew of the de fault. Was the bank, at law, a holder in due course as to the remaining sums due under the note or any part thereof? No. There appears to be no dispute under the law that one who purchases a note payable in installments, some of which installments have matured but are unpaid, is not a holder in due course as to any portion of the note, the whole note being dishonored where the purchaser had notice of the default. Missouri, Minnesota, Georgia, and the federal courts are among the jurisdictions that have so held. Q. Morton was charged with a crime. Two of his banker friends went on his bond which was to guarantee his appearance at the trial. Morton ab sconded and did not appear. One of the bondsmen paid the amount of the bond. Could he require the other to pay his share of the expenditures? Yes. The relation of cosureties on a bail bond is the same as that be tween cosureties upon any other ob ligations. The liability is joint, and if one discharges it he is entitled on gen eral principles to contribution from the other or others. Specific decisions to this effect exist in Minnesota and Washington. Q. Bradley, a Nebraska banker, en tered into a deal with Schommer whereby Bradley was to sell and Schommer was to buy a gasoline fill ing station in the town in which they lived. The matter Avas handled ver bally and Schommer made a doAvn pay ment to Bradley. Schommer did nothing more for some time and Brad ley finally told him he would not go through with the deal. The agree ment, since it Avas verbal, was one that Bradley understood one way and Schommer another. Did the fact that the doAvn payment had been made and accepted giAe Schommer the right to require Bradley to deed the station to him? No. The agreement here involved was void because it involved the sale of realty and was not in writing. Schommer could not compel Bradley to convey to him on account of the down payment because part payment of the consideration of an oral con tract for the sale of real estate unac companied by other acts of part per formance is insufficient as a basis for a decree of specific performance of the contract. Q. A banker OAvned a building in need of repairs. He contracted with a builder to furnish the material and labor to make the repairs. The build er commenced the repair Avork. When the job AA’as about half completed the building AA’as destroyed through no fault of the builder, thus making it impossible to complete the contract. Could the builder, as a general rule, recover from the banker for the rea sonable value of the labor performed and materials furnished? Yes. According to the great weight of authority, one who contracts to furnish labor or materials on a build ing in the process of construction or repair, or to furnish or install fixtures therein, may recover on quantum meruit for the reasonable value of labor performed and materials fur nished in partial performance of his contract, where without the contrac tor’s fault the building or structure is destroyed rendering full performance impossible. Florida, Illinois, Minne sota, Mississippi, Missouri, Nebraska, Ohio, Tennessee, Texas, and Wiscon sin are among the jurisdictions that have so held. Q. A banker and others, who liAed in a residential section of a Minnesota (Turn to page 64, please) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 21 OMAHA NATIONAL BANK Member Federal Deposit Insurance Corporation N o r t h w e s t e r n B a n ke r, F e b r u a r y , 1948 22 Announces Promotions Manufacturers Trust Company, New York, announces the promotion of Edward J. Colbert and Charles J. Pinto from assistant secretaries to assistant vice presidents. Edward J. Colbert became associated with the bank in 1916 and coincident of his duties in the bank has been to head the division of correspondent banks. as a lieutenant (s.g.). When he re turned to the bank he was assigned to Division B, covering the northwest states. Mr. Hunt, a member of the Illinois Northwest Bancorporation Bar, joined the bank in July, 1934, and J. C. Thomson, president of North west Bancorporation, in Minneapolis, shortly thereafter he was made a junMinnesota, announced that the con solidated net income of the corporation and affiliated institutions for 1947, aft er provision for charge-offs and write downs, amounted to $4,297,643, or $2.77 per share, compared with $4,495,528, or $2.90 per share, in 1946. The corporation paid in 1947 two regular dividends of 40c per share, plus a special dividend of 20c per share, aggregating $1.00 per share, for a total of $1,547,767, as compared with 80c per share, for a total of $1,238,614, in 1946. Northern Trust, Chicago The board of directors of The North ern Trust Company, Chicago, has an nounced the promotion of two officers, election of five new officers, and re tirement of one officer. In the banking department two R O B E R T E. H U N T To Assistant Vice President E D W A R D J. CO L BER T Assistant Vice President ior analyst in the comptrollers’ de partment. In 1936 he became associ ated with trust investments, and in 1939 joined Division B of the banking department. Mr. Hunt was elected as sistant cashier in 1942 and is now as signed to Division B to cover a large part of Iowa. In the Air Corps serv ice from September, 1942, to December, 1945, Mr. Hunt was discharged as a major. He received a special citation for meritorious service. with his promotion has been selected to take charge of the bank’s newest office at Eighth Avenue and 26th Street. With the opening of that office on January 5th, Mr. Colbert moved from his former location at First Ave nue and 74th Street where he was officer-in-charge. Commerce Trust, Kansas City Election of George W. Dillon as vice chairman of the board, Joseph C. Wil liams as president, and A. B. Eisen hower as executive vice president of the Commerce Trust Company, Kansas City, was announced by the board of directors following the annual meet ing. James M. Kemper, who has been president of the bank for the past 22 years and also held the position of chairman since 1939, will continue to head the bank under one title, chair man of the board. Joseph C. Williams, the new presi dent, Missouri-born, has been a vice president of the bank since 1925. He started with the bank in 1923 when he became an assistant vice president, coming to the bank with the organiza tion of the Continental Bank & Trust Company, which was absorbed by Commerce Trust at that time. Mr. Williams, as one of the impor tant officers of the bank, has served on the discount committee and the board of directors for many years. One N o r t h w e s t e r n B a n ke r, F e b r u a r y , 1948 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Guaranty Trust, New York Becomes JO H N V. HAAS Assistant Vice President officers were promoted and one new appointment was made. John V. Haas and Robert E. Hunt were promoted from assistant cashiers to second vice presidents, and James D. Hinchliff was elected assistant cashier. Mr. Haas came to the bank as a senior audit clerk in the auditing de partment in February, 1935. He was later transferred to the banking de partment and in 1938 he was named an assistant cashier. Mr. Haas was on leave from the bank from February, 1944, to December, 1945, to serve in the United States Navy. He entered as lieutenant (j.g.) and was discharged The annual meeting of stockholders of Guaranty Trust Company of New York, held January 21st, was presided over by J. Luther Cleveland, chairman of the board. The following directors, whose terms had expired, were re elected for a term of three years: George G. Allen, F. W. Charske, Charles E. Dunlap, Walter S. Frank lin, Lewis Gawtry, John A. Hartford, Cornelius F. Kelley, and William L. Kleitz. W. Palen Conway retired as chair man of the executive committee, under the company’s retirement system, aft er nearly 37 years of service with the bank. The board of directors, at their an nual meeting after the stockholders’ meeting, made the following official appointments: Robert W. Stephens, vice president, formerly second vice president: Reidar E. Gundersen, sec- 23 ONE OF 18 REASONS WHY HAMMERMILL SAFETY IS THE UNIFORM CHECK PAPER ' 'N l jifa SAFETY MADE COMPLETE IN ONE M IL L ...E V E R Y STEP UNDER ONE Typical of the eighteen exacting laboratory tests which all Hammermill Safety must pass is the one shown above. It records whether the paper is properly "sized " to meet Hammermill’s standards of writability. It is one reason w hy Hammermill Safety is u n ifo r m . . . in its smooth writing surface, protective qualities, color and strength. A note on your bank letterhead will bring samples. Address Hammermill Paper Com pany, 1513 East Lake Road, Erie, Pennsylvania. UNIFIED CONTROL https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o r t h w e s t e r n B a n ke r, F e b r u a r y , 1948 24 ond vice president, formerly assistant treasurer; Percy Wiesenauer, trust officer, formerly assistant trust officer; Robert S. Denvir, assistant trust offi cer, formerly assistant secretary; Al fred W. C. Spindler, assistant treas urer, formerly assistant secretary; Frederick G. Duncan, assistant treas urer. California Banks California Bank’s, Los Angeles, Cali fornia, loans and discounts totaled $97,240,473 at year end, a gain of 19 per cent over the 1946 total of $81,485,530, Frank L. King, president, an nounced. With total resources of $473,835,660 as compared with $461,830,598 a year ago, the statement reveals an all-time high for commercial deposits, the lat N o r t h w e s t e r n B a n k e r, F e b r u a r y , 1948 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ter having increased $14,000,000 to total $279,264,417. Capital stock, surplus and undivided profits aggregate $17,203,000, an in crease during the year of $584,704, all of which is reflected in undivided prof its now totaling $4,203,304. Surplus and capital stock each remain at $6,500,000. Final net profits for 1947 were $1,105,007, Mr. King stated. ment was made by Walter J. Cum mings, chairman of the board of direc tors. Mr. Birdsall’s 28 years with the bank Continental, Chicago Carl A. Birdsall was elected presi dent of the Continental Illinois Na tional Bank and Trust Company of Chicago. Fie had been vice president in charge of the banking department, and is a director. James R. Leavell, who retires from the presidency, will continue as a director. This announce CARL A. B IR D S A L L Now President began in August, 1919, when he was discharged from the Army as a captain in the air service and entered the employ of the Continental and Com mercial National Bank, a predecessor of the present institution. He was successively elected assistant cashier in 1923, second vice president in 1927, and vice president in 1930. He is a trustee of the Equitable Life Insur ance Company of Iowa. American Express Following a meeting of the board of directors, President Ralph T. Reed of the American Express Company an nounced the election of Howard L. Clark to vice president of the Ameri can Express Company, and John P. Wagman to vice president of The American Express Company, Inc., from respectively assistant vice presi dent and assistant treasurer. The appointment of Albert R. Cotterill as assistant secretary of both American Express and The American Express Company, Inc., was an nounced at the same time. Crocker First National Five promotions among the officers and staff and the election of one new director of Crocker First National Bank of San Francisco were an nounced following the annual meeting of the stockholders. All other officers and directors were re-elected. William W. Crocker, president of the bank, announced that Frederick 25 Crocker Whitmore has been elected to the board of directors. Mr. Crocker also announced the fol lowing promotions: Hart H. Tantau, from assistant cashier to assistant vice president; John C. Boyle, note depart ment, and F. R. Stent, new business department, were promoted to assist ant cashiers. Donald B. Parker was promoted to assistant cashier in charge of the savings department. Lester T. Bartman of the Oakland office of the bank was promoted to assistant cash ier. William P. Bradford was ap pointed chief clerk. Harry Graefe of Graefe and Com pany, Des Moines, was elected presi dent of the Iowa Investment Bankers Association last month at the annual business meeting in Cedar Rapids. Other officers elected were: First vice president, Thomas Crabbe, Thomas L. Crabbe and Company, Cedar Rapids; second vice president, J. H. Ruhl, vice president, Quail & Company, Daven port, and secretary-treasurer (re elected), Sherman W. Fowler, assist ant vice president, Iowa-Des Moines National Bank, Des Moines. City National, Kansas City Four new members of the board of governors were elected to replace Investment Bankers Meet those whose terms expired this year. They are: Ernest Kosek, Ernest Kosek and Company, Cedar Rapids; Tom J. Landstorfer, secretary of McCrary, Dearth and Company, Inc., Des Moines; Carl Stutz, retiring president of the Association and secretary of The White-Phillips Company, Inc., Davenport, and Vic Becker, president and treasurer of Becker and Cownie, Inc., Des Moines. It was voted to hold the annual field day in Des Moines next September 22nd and 23rd. First National, Chicago Homer J. Livingston, vice president, was elected a director of The First The board of directors of City Na tional Bank and Trust Company of Kansas City, Missouri, elected Harry Moreland, president of Great Lakes Pipe Line Company, and Kearney Wornall, vice president, to its membership. George C. Kopp, vice president, was made executive vice president of the bank. Other promotions are: James M A N Y M ID W E STE R N BANKERS, WHOSE CUSTOMERS LIVESTOCK TO RECOGNIZE THE SHIP CHICAGO, GENUINE UTILITY OF DROVERS FRIENDLY SERVICE HERE IN THE ‘Y A R D S ’ A T THE C E N T E R OF T H IN G S . KEARNEY W ORNALL Elected A Director R. Gayler from assistant vice president to vice president; Jack Black, John Yonts, Ewart H. Burch and James F. Mack from assistant cashiers to as sistant vice presidents; Chester L. Brewer, Jr., Guy S. Hadsell, Emory F. James, Jr., Jack S. Kitchen, Chas. W. Koester and Allen Morrow from spe cial representatives to assistant cash iers. City National increased its capital by a 100 per cent stock dividend, this increase taken out of its surplus ac count. This makes the invested capi tal structure $2,000,000 capital, $3,000,000 surplus, and $1,300,000 undivided profits. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Members, Federal Deposit Insurance Corporation N o r t h w e s t e r n B a n ke r, F e b r u a r y , 1948 26 National Bank of Chicago at the an nual meeting of the stockholders of the bank. All present members of the board were re-elected. At a meeting of the directors, Ver non C. Bartels and Harold W. Lewis, formerly assistant vice presidents, were elected vice presidents. The following new officers were elected: William E. Ebben, Marion C. English, John S. Gleason, Jr., Milton C. Haase, Robert H. Hagey, Henry P. Isham, Jr., Robert P. Keeth, Nelson L. Kramer, Frederic E. Lee, and Vic tor C. Von Meding, assistant cashiers in the commercial department: Henry O. Koeneman, assistant cashier in the savings department; William E. Swiney, assistant trust officer; William H a n k s a n d G. Schmus, Chauncey M. Weaver, and John J. Winterhalter, assistant secre taries in the trust department; Ralph J. Mohan, assistant attorney in the law department, and H. John Wegener, assistant cashier in the operating and personnel department. Adds to Official Staff to help in solving any problem arising in field warehousing. Mr. Wubben started with St. Paul Terminal Warehouse Company in 1923 and was the first employe in its field warehouse division. Since that time the company has become one of the largest operators of field warehouses in the midwest and its receipts are H. G. McNeely, president of the St. Paul Terminal Warehouse Company, has announced the appointment of L. H. Wubben as operations manager of the Field Warehouse Division of this company. Mr. Wubben has had twen ty-four years of experience in field warehousing, and his host of friends throughout the midwest will be glad to know his services will be available I t a n k e r s will find this institution especially well equipped to handle their Chicago accounts. Our com plete facilities are at the disposal o f all in need o f this service. City National B ank AND T IIU S T C O M P A N Y o / C h ic a g o 2 08 SOUTH LASALLE STREET (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 .) L. H. W U B B E N Named Operations Manager held as collateral by banks throughout the country. Mr. Wubben will be lo cated in the St. Paul office. Bankers Trust, New York Joseph V. Sauter, formerly trust of ficer of Bankers Trust Company, has been elected an assistant vice presi dent by the board of directors, it was announced by S. Sloan Colt, president. He has been with the bank since 1931. Inventory Loans Secured by Our Warehouse Receipts Are Prime Collateral Consultation service without obligation. Address inquiries to our nearest office. ST. PAUL TERMINAL WAREHOUSE CO. ST. PAUL, MINNESOTA Experienced and Responsible Operators of Field Warehouses IO W A OFFICE 515 Iowa-Des Moines National Bank Bldg. Des Moines — Tel. 2-1208 T. C. Cannon, District Mgr. N o r t h w e s t e r n B a n ke r, F e b r u a r y , 1948 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis OTHER OFFICES St. Paul — Minneapolis Milwaukee — Chicago Indianapolis — Detroit 27 INVESTMENTS In crea sed In vestm en t R etu rn Seen A s Top-G rade R ond Earnings R ise Prudent Portfolio Management and Higher Interest Rates Will Mean Larger Rewards in 1948 By RAYMOND TRIGGER Investment Analyst New York City bonds inch higher. Nonetheless, the outlook is not particularly cheerful for the careless or indolent manager of investment funds. Markets in 1948 are unlikely to cover up investment mis takes any more than they did, save for brief periods, in 1947. The re wards this year will go to the careful and prudent buyers. But there is some comfort to be extracted from the fact that those rewards will, in all likelihood, be a little larger. During the course of 1948 potential investors should have an interesting variety and a large volume of new is sues placed before them for considera tion. The best grade issues of indus wages as presently owned obligations trials and utilities may not be offered mature. at really inviting prices because the The country’s 15,000 commercial issuers know they enjoy excellent bankers may be relied upon to keep credit and can usually find some way their heads despite various warnings to raise money without resorting to and threats that may emanate from higli-coupon, long-term bonds. They Washington. Wise and prudent lead may even raise some equity money, as ership exists and it will make itself indeed they should, if the business increasingly heard. One of the results boom persists and some intelligent tax will be an even more careful screen revision comes out of Washington. If ing of applications for commercial so, of course, pressure on the highloans. Higher interest rates make it grade bond market will be correspond all the more likely that the total vol ingly lightened. Rediscount Rate Quality Still Best In passing, the rediscount rate is of ume of such advances by commercial There is, however, no substitute for only academic interest to most com banks will be held to entirely defen mercial bankers because the country’s sible limits since moderately larger quality and 1948 would appear to be banks are borrowing so little from earnings can be attained without one of the least likely-looking years in which to abandon the axiom. If a suf the Reserve Banks. What is impor sharply expanding loans. ficient amount of high-grades come on Two-fold Importance tant, though, is the mounting total of the market at reasonably inviting The significance of a rising trend straws all blowing in the same direc tion. On balance, the country’s lead in interest rates to the managers of yields, well and good; but if they do ing bankers found reason to welcome banks’ investment portfolios is two not there is still no warrant to down the rising trend of interest rates. fold. They cannot look for any wind grade the portfolio. Happily, 1948 promises to see an Some expressed the hope that moder falls from security profits this year, ately larger earnings might be secured but they can hope to gradually lift other spate of tax-exempts, some of from operations in 1948. It seems en the average return on portfolio hold which may be of prime quality and tirely reasonable, particularly in the ings as they reinvest the proceeds of priced at levels to interest even those who do not need any great amount of case of banks which have rigidly ad maturing obligations. At the same time, the case for stick tax shelter. After all, the voters in hered to the policy of maintaining a portfolio of relatively short govern ing to ultra-conservative policies will many states have ordered that bonuses ments. These bankers will be able to strengthen as the earnings provided be paid and all the financial officers put their funds back at work at better by good, high-grade and top-grade of those states can do is to go to mar- EAR-END surveys and forecasts by the heads of most of the coun try’s largest banks have been re ported in the newspapers. They were generally much alike, of course, be cause the conditions faced by bankers are much the same in all parts of the ■country. Expenses rose in 1947 and earning power could not be stepped up quite as rapidly. Toward the end of the year though, the Washington authorities relaxed somewhat and in terest rates did stiffen. It is worth reminding the younger generation of bankers that the slight rise in interest of recent months still leaves rates historically low. Artifi cial controls have been in use for so long that infinitesimal rates could ■come to be taken as normal until one looks back over a few decades. For example, a rise in the rediscount rate from 1 to 114 per cent appears unim portant when one recalls rates of 65 per cent in extreme cases some 20-odd years back and call money rates as high as 365 per cent for short periods •earlier in the century. y https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis This is a discussion of factors affecting your investment port folio. If you have any questions, er if you find yourself in dis agreement with comments here in, your letters, addressed to the NORTHWESTERN BANKER, will be welcome and will be answered here if the subject matter is of general interest. Under no cir cumstances will the editor of this column discuss specific securities. N o r t h w e s t e r n B a n ke r, F e b r u a r y , 1948 28 Investments ket and buy the money at whatever rates prevail. In another sector, rath er inactive during and since the war, there may be some sound omissions. The ordinary obligations of most rail roads are not in high esteem among conservative investors, but rail equip- D ie b o ld I N C O R P O R A T E D Now includes York Vaults—McClintock Alarms Canton 2, Ohio ★ BANK VAULT E Q U I P M E N T B U R G L A R A L A R MS • SAF ES , C H E S T S A N D VAULT DOORS MICROFILM • ROTARY, VERTICAL AND VISIBLE FILING EQUIPMENT ★ Nation-wide Service by Factory Trained Experts F a c t o r y B r a n c h e s in C H IC A G O , DES MOINES ond ST. PAUL ment certificates have lost none of their particular appeal to commercial bankers. The facts are that at the close of 1947 more than 70 per cent of freight cars and more than 87 per cent of passenger cars in service on the roads were more than 15 years old. More than 58 per cent of the locomo tives were more than 25 years old. No great amount of imagination is re quired to forecast several hundred mil lions of new rail equipment financing in 1948. A market development that has left observers entirely bewildered has been the continued decline in the price of the World Bank’s 10-year 214 s and 25year 3s into the low 90s. Yields at these levels are extremely liberal and the price of the 3s, for example, com pares with transactions at 103 and the initial offering price of 100 a few months ago. The total of the Bank’s two issues is only $250,000,000 and the Bank is believed to have around $500,000,000 in U. S. dollars on hand. The Bank started with around 725 millions, bor rowed 250 millions more and has lent in the neighborhood of 500 millions. It has staggering “applications” for loans on file and is considering their merits, but the realities of the situa- r \ LOTS OF LITTLE O RDERS Even tho the trend in printing, as in other fields, has been toward bigger mechanical equipment and larger units o f sale, DeLuxe for years has focused on small, fast machines so as to be in position to produce lots o f little orders. Last year we made checks for 9,756 banks and the total billing to some o f them was so small that many print ers would feel it hardly worth record ing. Nothing tickles us more, how ever, than to make out a nice new sales card for a bank we never sold before and record thereon $1.35, or $2.90, or perhaps even as much as $4.50. It is harder to build a business made up o f tiny units, but it is a nice busi ness when it finally gets rolling. To keep it rolling you have to maintain a dependable, service-conscious or ganization. So DeLuxe is dependable, and if you should happen to have one little order — say for 200 Per sonalized Checks — we’d like to have it. Should you happen to have a hun dred thousand such orders, we’d like to have them too. W h a t we are trying to say — poorly expressed, perhaps — is that we not only are dependable but rather big, in a small sort o f way, and we can handle lots o f little orders in a fast, accurate manner. W ith five plants, all with the same standards o f workman ship, all with identical procedures, all can meet some pretty exacting deliv ery deadlines. N E W Y O R K , CLEVELAN D, N o r t h w e s t e r n B a n ke r, F e b r u a r y , 1948 Cushion of Dollars In addition to its current holdings of U. S. dollars, the Bank has a most important cushion upon which it could fall back should the need ever arise. Something more than 2.5 billions could be “called up” from the United States in U. S. dollars to “meet obligations of the Bank,” along with large amounts of other currencies. Since the outstanding bonds are payable in dollars, “other’ currencies wouldn’t be particularly helpful, but the untapped 2.5 billions of U. S. dollars are ten times the face value of presently out standing bonds. Viewed realistically, the Bank isn’t lending (caustic critics might call it donating) any more U. S. dollars at present for the reason, probably and among others, that the Marshall Plan dominates the picture. It would, pre sumably, resume lending should ERP be turned down by the Congress. And its loans might be considered pretty poor basic assets by a prudent U. S. banker. Even so, it’s hard to see how the U. S. owner of the Bank’s bonds could get hurt, paradoxical as the state ment sounds. As it happens, the Bank has full power to “support” the market for its bonds. It hasn’t done so, but it has. the right and certainly has ample means, perhaps $500,000,000 in U. S. dollars. Nor has the Bank ever said that it would not support its bonds at some future date. Should the Bank de cide to return to the U. S. money mar ket for additional funds, it shouldn’t have any trouble in restoring outstand ing bonds to par, or even to the old peaks of around 103 for the 3s. Viewed from any angle, then, the situation presents a curious paradox and perhaps an inviting opportunity to investors willing to look into the unusual nature of the Bank’s obliga tions. It is not within the province of this department to advise on the invest ment appeal, or lack of it, of any spe cific bond, but it is perhaps not over stepping to direct attention to World Bank bonds at current levels in the mid 90s.—The End. with the same type o f equipment, we Manufacturing Plants at \ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis tion suggest that no additional impor tant loans are imminent. C H IC A G O , K A N S A S C I T Y , ST . PAUL HOW YOUR DIRECTORS CAN HELP YOUR BANK (Continued from page 17) the appropriate Federal banking agen cy, also provide your board of direc tors with facts about your bank. An able board of directors will wish to read and discuss the report thorough ly and to take prompt and effective action upon the examiner’s recommen dations. Investments 29 6. Let us turn now to the most posifields. Make every sound loan that and financial fields. You must provide tive role of the board, namely, the will facilitate that production. Be ag leadership, therefore, in the solution establishment of its policy for the ac gressive, particularly in serving the of these problems. It is your civic quisition of loans and investments. At needs of small business. Conversely, responsibility to stimulate thought on no time do the directors of a bank avoid making any loan which does not these problems, to aid in the education perform their function more fully facilitate production, or contribute to of your community, and to help mold than in passing upon loan applications. satisfying the legitimate needs of con public opinion into a living and active force.—The End. In larger banks, sound principles of sumers. Civic Work administration, in the interest of an 7. There is another positive respon economy of time and effort, require transfer of a portion of that function sibility of your directors to your com to designated officers, or to a loan munity. There will continue to be an committee. Nevertheless, such officers increase in the legitimate demand for or loan committees are but the agents credit to finance agriculture, industry, ■of the directors. The latter must set and trade in most communities. One up the guideposts by which those of the chief reasons for the existence of a bank is to supply that need. To agents operate. One inviolable guidepost need not do so, your total capital account must be emphasized, namely, the necessity be sufficiently large to warrant as for a limitation on the amount of sumption of the risks involved. 8. Let us direct our attention to a loans to a single interest, to officers, to directors and to their interests. broader, far-reaching responsibility of Such limitations have received general bankers and bank directors. Today, recognition in statutory form, but the proper solution of the economic your directors may wish to set more and financial problems of our nation and of the world is of paramount im stringent limitations. portance, because this is an interde Good Farm Loans 200 Equitable Bldg. Des Moines, Iowa A recent survey conducted jointly by pendent world, and I need not tell you Phone 4-7159 A.T.T. DM 184 the Federal Reserve Board and the that one state cannot stand alone. You, Federal Deposit Insurance Corpora bankers and bank directors, have a tion revealed a number of important unique competence in these economic facts with respect to loans made by banks to farmers. In the middle of 1947, the insured banks had outstand ing two and one-half million loans to farmers amounting to almost two and one-fourth billion dollars. Over two million of those loans, amounting to one and one-half billion dollars, were farm production loans. Two-thirds of those loans were small, less than $500 each. The large proportion of small loans shows the large extent to which the insured banks are meeting the credit needs of small farmers through out the nation. Your board of directors will serve the farmer best by continuing a policy for your farm mortgage loans which requires each farmer to have an ade quate equity in his farm. Where equi ties are inadequate, urge the farmer to amortize his mortgage rapidly, now, while prices are high and farmers are more prosperous than ever before. Banks generally have recognized the INVESTM ENT COUNSEL opportunities for service to their com munities by aiding the efforts to re Individuals, Institutions, Trust Accounts and Estates lieve the acute housing shortage. RICHARD R. ROLLINS, I nc . To test your present policy let me ask you two questions: Are your re Representing cently acquired u r b a n mortgages SHERIDAN - FARW ELL & MORRISON, Inc . based upon realistic appraisals? Are the carrying charges a reasonable INVESTMENT COUNSELLORS share of the owner’s assured level of E IG H T - SO UTH M IC H IG A N A V E N U E income? Chicago 3 Let me summarize my thoughts with respect to your determination of Des Moines Office lending policy. To win the peace and 405 Bankers Trust Building to avert inflation, this country needs increased production in a great many https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MUNICIPAL and CORPORATE SECURITIES Underwriters and Distributors Wheelock & Cummins, Inc. N o r t h w e s t e r n B a n ke r, F e b r u a r y , 1948 30 ON RECORDFinancial Statement as of December 31, 1947 ASSETS $ 463,051.53 20.7% S. Bonds (amortized value)............................................. 1,244,710.00 55.5% First Mortgages (none delinquent)..................................... 205,274.05 9.2% Due from Agents (current balances)........................... ....... 265,427.18 11.8% Building and Loan Shares.................................................... 20,000.00 .9% Real Estate Owned................... ............................................ 2 , 000.00 .1% Due from Reinsurance Companies..................................... 9,066.25 .4% Accrued Interest on Investments......................... ............. 9,014.48 .4% Cash Value of Life Insurance........................................... 23,258.30 1.0% $2,241,801.79 100.0% C a s h .............................................................. ............................. U. f LIABILITIES Current Bills ................................................................. ........... $ 4,671.74 Employees Bond Account.......................................... ........ 104.00 Government Withholding Tax............................................ 2,288.50 Current Reinsurance Premiums.......................................... 19,713.15 Reserve for Taxes.................................................................... 74,112.46 Reserve for Unearned Premiums........................................ 1,121,704.28 Reserve for Unpaid Losses................................................... 278,240.36 Reserve for Schedule " P " ..................................................... 30,460.00 Surplus ........................ ............................................................ 710,507.30 $2,241,801.79 All policies issued by the Western Mutual Fire Insurance Company are non-assessable WESTERN MUTUAL FIRE INSURANCE CO. Des Moines, Iowa N o r t h w e s t e r n B anke r, F e b r u a r y , 1948 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 31 INSURANCE Group Life in su ra nce H elps Individual Sales By EDWIN C. McDONALD Second Vice-President Metropolitan Life Insurance Company New York City i THINK the next decade will wit ness the continued march of group insurance in all its forms. The mass principle of marketing life insurance through employers is here to stay. The merchandising of any product on a basis which is efficient, economical, and effective in the sense that it reach es the lower income group where the need is great seems certain to become an increasingly important factor in our national economy. Granted that the individual wants the freedom to choose his own con sultant on insurance matters, he can not afford to miss the advantage of an insurance bargain as offered him by his employer as part of his insurance program and the privilege of paying for the protection through easy install ments deducted weekly or monthly from his pay check. The employer’s participation in the cost and the attrac tive rate structure which can be used for a group or wholesale plan for a limited amount of insurance offer ad vantages quite out of the question in an individual deal on a retail basis. I Group Sales Do Help Periodically one hears the observa tion that group plans interfere with the production of individual insurance. I always ask for proof of those state ments and I’ve yet to see anything to support it. On the contrary, I know of evidence on the other side. For example, in towns where group life insurance is widespread, I note the strictly ordinary companies do a fine business and agents make exceeding Widespread Interest e d w in c. M cD o n a l d “ Group Plan makes the salesman’s road easier” insurance as an integral part of a well-rounded program of protection for an employe having individual insur ance. There are many indications that the very existence of a group plan makes the salesman’s road easier in the placing of ordinary business. Prop erly designed and understood, individ ual and group insurance are partners, and not competitors, in serving the insurance needs of the employes. Did you know that adoption o f our Cash Letter insurance enables you to dispense with detailed Cash Letter tran scripts and keep only a duplicate adding machine tape? Ask us fo r details. F IR S T N A T IO N A L https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis BANK B U IL D IN G Furthermore, any salesman of life insurance who honestly believes that group benefits impair his chances of producing further business should re call (a) that before insurance compa nies undertook group insurance there were so-called relief societies or em ploye benefit associations in many or ganizations and (b) that even if life insurance companies stepped out of this field completely, that would be no guarantee that many corporations wouldn’t establish life insurance plans of their own in some fashion or other. ly good money. Flint, Michigan, and Schenectady, New York, are two ex cellent examples of this point. There is plenty of room for group C H IC A G O The interest of the insurance car riers in this branch of the business is well illustrated by the fact that at the end of 1946, 150 companies were en gaged in group insurance, and employ ers had bought almost $30,000,000,000 of group life insurance for their em ployes. Do we deserve the credit for this tremendous growth? Well—some—but employers deserve a great deal of credit for their foresight, ingenuity, and courage in undertaking these group plans. I have always felt the insurance industry does much too lit tle in its public advertising to congrat ulate business men for their part in making this protection available to workers. It strikes me that you should consider publishing an adver tisement periodically patting the em ployer on the back for installing a group program. Furthermore, such advertising would have some effect with the public in showing employers who are thoughtful about the welfare Scarborough & Company Insurance Counselors IL L IN O IS • STATE to Banks 4325 N o r t h w e s t e r n B a n ke r, F e b r u a r y , 1948 32 Insurance of their employes and indirectly help to support the competitive enterprise system.—The End. W HAT SHALL WE DO ABOUT LIVESTOCK LO AN S? (Continued from page 15) ply of meat will overtake demand for many months to come, barring a major economic reversal. “ In our opinion feeder loans, made with reasonable care, are both desir able and constructive, even at the present high level of costs. Produc tion must be maintained if further inflation and price spiraling is to be avoided, and where the risk exposure is held within conservative limits in relation to the borrower’s capacity to absorb a possible loss, we believe financial assistance to feeders should not be withheld merely because there are some uncertainties in the picture. “Fortunately, most livestock feeders have prospered during recent years and are in a generally strong position financially. Most of them, also, realize the uncertainties with which they are confronted, and are well aware of the fact that one of these days the market will turn downward and they will in cur a loss in some one year or in some one or more lots of cattle or sheep or hogs, as the case may be. The prob lem is not so much how to avoid such a loss entirely, desirable as that would be if possible, but rather how to min imize it and provide in advance the necessary cushion to take up the shock without serious damage. The cushion can and is being provided in many cases by reducing or eliminating the land debt out of current profits—also by investment of surplus earnings in Government bo'nds, which can act as a secondary reserve for livestock feed ers the same as for banks. “As to how to minimize the loss CONTACT . .. Direct contact with business and banking abroad enables us to give fast and depend able service to correspondents. If you have a p ro b lem o f fo re ig n trade, call on . . . T he C O N T ] N E N T A L BANK & TRUST COMPANY o f NEW YORK 3 0 B r o a d S t r e e t , N ew Y o r k 1 5 , N .Y . M E M B E R FE D E R A L D E PO SIT INSURANCE C OR PO R A TIO N Resources of OVER 2 ,9 0 0 ,0 0 0 DOLLARS Experience of OVER TWENTY-SEVEN YEARS Now dedicated to the Surety and Fidelity Bond needs of the Middle W est. Surety Division The State Automobile Insurance Association DES MOINES, N o r t h w e s t e r n B a n ke r, F e b r u a r y , 1948 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis IOWA when the break comes, the situation of individual feeders varies, as does the type of feed they wish to utilize, and no rigid rules can be laid down that are applicable to every case. Gen erally speaking, it would seem desir able that feeding operations involving a full grain ration be limited for the present to short term programs in volving moderate numbers and more frequent turnovers. Cattle weighing 800 pounds or more and carrying suffi cient flesh so that they can be turned within 100 to 150 days appear to in volve the least risk, but calves and light yearlings may work out very well if only hay and grass is to be utilized before the new corn crop is available. The growth factor in these kinds will cheapen materially the cost per pound after a season on grass, especially if weather conditions are favorable, but where full grain feed ing throughout is involved the cost of putting on the grain at present grain prices would appear to make these kinds extremely hazardous. “Definitely, it is not our opinion that livestock feeders or those financ ing them should cease operations be cause of the uncertainties in the pic ture. Rather, we believe that they should go right ahead doing business, but on a conservative rather than an expanded basis.” Charles H. Griesa, vice president, The Inter-State National Bank, Kan sas City, Missouri: “ It seems that here again is an other example of a commodity not under Government control, the price of which is being regulated by supply and demand. “We are now going through a cycle in which our cattle population is on the decline, which is being caused by a number of factors at a time when a greater percentage of our population than ever before has an appetite for meat and has the money or credit with which to purchase it. Feed for live stock is extremely high and scarce, for various reasons, there is a tendency on the part of some breeders of live stock to disperse their herds, income taxes are high and a discouraging fac tor in risking capital, and the embargo on Mexican cattle which has shut out approximately 500,000 head of cattle per year from our market are all fac tors causing our live stock population to decline. “ By reason of the outlook, meat ra tioning is being proposed, which I believe would be a serious mistake. Should present prices continue to in crease, that factor in itself will be a damper on buying of meat by the gen- Insurance eral public and result in it going farther. “When the trend will reverse itself is simply a matter of conjecture. In the meantime, we believe loans should be well margined and made to ex perienced operators who have other good equities to cushion a decline when it comes. “For many, many months, inter ested people have been concerned about the high price of cattle and other live stock. By reason of their uncertain feeling about the market, many of them have chosen to stay out. Now prices are at their all time peak, but who knows when there will be a decided trend the other way? If left alone, economic conditions will no doubt handle the situation as they have in the past.” C. Karpf, president, Live Stock National Bank, Omaha: “The picture changes so rapidly that it is impossible to make much of a prediction as to what might happen. The noise in Washington and the un certainty as to what they are going to do, is causing a lot of concern to the cattle feeders, and it is my opinion that a lot of cattle are being marketed for two reasons, one, the fear of what Washington is going to do, and the other, high-priced corn. “Personally, I do not feel comfort able with loans on $24 cattle; based on the experience of feeders in the past three or four weeks, these cattle would have to bring from $29 to $31 per hun dred in the course of 90 to 100 days to do any particular good. Weather con ditions play quite a part in the feed lot at this time of the year. Gains have not been satisfactory since No vember and probably will continue un satisfactory through February and March. It is sort of an uphill business feeding cattle in zero weather, and then with the early thaws yards get into terrible condition, and I do not believe that cattle which normally put on 2 to 2 V2 pounds of gain a day will do much over a pound a day, and this makes the cost absolutely pro hibitive. “We have felt that there would be plenty of cattle for the market prob ably through February and the early part of March, and then rather a dras tic shortage from that time on. “Of course you know there is no set rule for making live stock loans, but I definitely feel that at this time it is necessary to have a margin, above the feed which goes into the cattle, in cash or at least plenty of evidence that the feeder is able to sustain a substantial loss. There has been rather a bad slump in prices in the past two weeks Henry https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis which I think will range from $2.00 to $4.00 a hundred on the better class of cattle. We are coming into the season of the year when the plainer grades are in demand and I do not believe they have been hurt as much as the better cattle, that is the cattle selling from 30 cents on up. “ I think it is anybody’s guess as to what the future may hold for the cat tle feeder but would seem a pretty good time to back up and at least at tempt to conserve some of the profits made during the good times.” A BANKER at a large marketing center says: “My opinion in connection with cat 33 tle loans is that a margin of 20 to 25 per cent should be obtained. In other words, it has been customary in the past to lend feeders the purchase price of cattle, providing they have enough feed on hand and show a state ment of substantial worth. To all ap pearances it looks as though the cattle market is going higher owing to the scarcity of cattle and feed. No one can be definitely assured of this and I do not believe people will be able to afford the purchase of much meat at prices which will be necessary on ac count of the cost of cattle. This might lead to a buyer’s strike and certainly a lot of families who are eating meat would use other kinds of food in order 3 8 7 Y ears of E xperi ence Is Back of Your Allied Mutual Policies The judgment and experience of Allied Mutual officers and directors helped this company show an underwriting profit for the problempacked year of 1947. S T A T E M E N T OF A S S E T S AND L IA B I L IT I E S As of December 31, 1947 ASSETS Bonds (Amortized Value) Government ............................................................................................ $2.728,283.27 Iowa County .......................................................................................... 84,850.02 Railroad (Government Guaranteed)................................................. 120,029.73 Miscellaneous .................................... 10,000.00 Federal Savings and Loan Certificates.......................................................................... Deposits (not on interest) Central National Bank and Trust Co., Des Moines........................$ 123,579.52 Iowa-Des Moines National Bank, Des Moines.............................. 25,000.00 5.000. The Grundy National Bank, Grundy Center, Iowa.. 5.000. Earlham Savings Bank, Earlham, Iow a....... 5.000. Farmers State Bank, Luverne, Iowa............. 5.000. Iowa State Bank, Des Moines, Iow a............. 5.000. Security Savings Bank, Farnhamville, Iowa 400.00 Cash in O ffice.................................................... Agents' Balances (Under 90 Days Old)..................... Interest Accrued Bonds ........................................................................ Federal Savings & Loan (Dividends Declared).. $2,943,163.02 71,500.00 00 00 00 00 00 173,979.52 283,721.94 8.832.16 826.25 9,668.41 Total Admitted Assets................................................................................................. $3,482,032.89 LIABILITIES Reserve for Liability and Workmen's Compensation Claims................................... Reserve for All Other Claims........................................................................................... Estimated Expense of Investigating and Adjusting Claims....................................... Reserve for Unearned Premiums..................................................................................... Reserve for Taxes................................................................ Reserve for Current Accounts........................................................................................... Reserve for Dividends........................................................................................................ Funds Held Under Reinsurance Treaties.......................................................................... $ 645,168.59 334,171.79 44,472.47 1,616,302.80 109,564.81 16,212.90 6,374.58 2,869.00 Total Liabilities ....................................................................................................... 'Surplus to Policyholders........................................................................................... $2,775,136.94 706,895.95 Balance ....................... ................................ ...................................................... ....... ‘ Includes $250,000.00 Guaranty Fund $3,482,032.89 ALLIED M U T U A L CASUALTY COMPANY Harold S. Evans, President Hubbell Building Des Moines 7, Iowa N o r t h w e s t e r n B a n ke r, F e b r u a r y , 1948 34 Insurance to cut down their cost of living. In fact I know a lot of people right now who are only eating meat once or twice a week. “We have recently been making some cattle loans to substanial people but we have insisted upon a margin which naturally has met with resist ance, but on the other hand we have been able to secure it, not always at 20 to 25 per cent as sometimes the loans have justified a smaller margin. public national Bank a n c T T ru st C o m p a n y o f J fe w fjo r k . 3 7 B road St ., New Y ork C ity 26 Offices Throughout Greater New York IIUUU1IIUUIIIUIIIIIIIIIIIIIIIIIIIII111IIIU1IIIIIIIIIIIIIIIIIIUIIUIJIII “ I think that all commodities are government controlled and, while it is true that good cattle are very scarce, I still feel the government can con trol both the cattle and the hog mar kets. This in my estimation has been definitely shown in lard, wheat, corn, and soy beans. The lard market, with which we are more familiar, was around 30 cents a pound last spring, with a heavy demand, and it dropped as low as 17 cents a pound, with hogs on the upgrade and no demand for lard. In fact you could not give it away. Since then the picture has again changed and lard is selling in the neighborhood of 28 cents, due I feel to government buying.” ANOTHER BANKER close to the live stock feeding and marketing situa Announcing . . . A New Service For Bankers Organization of the BANKERS SERVICE COMPANY, Inc., has been completed and services of this firm are now available for midwestern bankers. THE BANKERS SERVICE COMPANY, Inc., will negotiate the sale of bank stocks . . . will furnish high caliber personnel to banks . . . and will specialize in the sale of controlling stock of country banks or minority stocks which carry an active executive position. Henry H. Byers, a veteran of over 23 years experience in this field, is president of the BANKERS SERVICE COMPANY, Inc. Consult us first. . . . No charge or obligation. . . . All transactions confidential. H enry H. B yers B an kers S ervice Co., I nc. Register and Tribune Bldg. DES MOINES, IOWA Tel. 2-7800 N o r t h w e s t e r n B a n ke r, F e b r u a r y , 19 48 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis P. O. Box 1435 tion makes the following comment: “Naturally, we think live stock values are dangerously high, but we thought this a year or so ago and since that time they have gradually increased more. It is my opinion that unless some restrictions are placed on live stock products by Congress, they will go higher yet. Relative to loans on live stock based on the present price of cattle, it is our policy to insist on cash margins sufficient to absorb any ordinary decline in prices. While we realize such declines might be more drastic than we anticipate, we look to the financial stability of the individual to take care of such un usual losses should they occur. The borrowers who have been in the game for the last several years have realized nice profits from their operations and are in the position to put in such a cash margin as we require. There fore, we are not hesitant to go along with our established borrowers on this basis. “ I do not feel that it is any time for comparatively new operators to expand their operations because un less they have accumulated enough profits from their past operations to be in a position to absorb extraordi nary losses, I don’t feel that it is good business for either the bank or the borrower to get too far out at this stage of the game. “Personally, I do think that the de mand for such loans will not be very great unless the outlook for profitable handling is much more inducive than it is at the present time. We know that the present cost of feeder cattle plus the high price of grain is narrow ing the margin to such an extent that there are very few operators at the present time that are realizing any profits from their feeding operations. This is another good reason why banks should be very cautious in mak ing loans to new prospects for cattle feeding. “ Regarding the high price of meat holding through 1949, any comments on this would be a guess and one guess is as good as another. I do know that there is a scarcity of meat prod ucts, and because of the unfavorable margins in feeding operations at the present time and which we have been experiencing for the last six or eight months, our summer marketings of fed cattle will be much less than they have been in the last few years. We know the demand is by far exceeding the present supply and because of this condition, I do not believe there is much possibility of prices declining.” 35 Minnesota NEWS JOHN CARLANDER President Faribault ROBERT E. PYE Secretary Minneapolis Mr. Griggs also announced promo tion in the banking department of seven of the bank’s present officers, and the naming of two new officials. New officers named were John A. MacFadyen as assistant secretary, and Ralph E. Wagner, assistant cashier. Assistant cashiers advanced to assist ant vice presidencies were Albert L. Horak, John C. Buckley, Edward J. Peterson, Walter A. Chabot, Russell M. Walters and Charles E. Taylor. Sigfred J. Nelson, an assistant cash ier, was named cashier. Pioneer National Bank Increase Stock Stockholders voted to increase from $50,000 to $100,000 the capital stock of the State Bank of Faribault, Minne sota, whose resources were reported to be more than $3,200,000. President John Carlander and all other officers were re-elected. W. R. Van Slyke William R. Van Slyke, widely known mining engineer and fee agent for some of the Range’s largest iron min ing properties, died in his sleep at his home at Ely Lake, Eveleth, Minnesota, recently. Mr. Van Slyke was president of the First National Bank at Eveleth at the time of his death. A. E. De Sutter Andrew E. De Sutter, Minnesota banker and businessman, died last month of a heart attack. Mr. De Sut ter was president of the Farmers and Merchants State Bank. Aitkin The Security State Bank of Aitkin, Minnesota, opened last month as suc cessor to the 33-year-old Farmers Na tional Bank of Aitkin. Incorporators of the new bank are Glen Wilson of Lake Wilson, Joseph Thompson of Princeton, and Charles E. Lyons, B. N. Welliver, A. W. Hoff man, H. W. Hoffman, Thornton Get ting and Dr. I. L. Mitby, all of Aitkin. Officers are Glen A. Swenson, presi dent: Thornton Getting, executive vice president; Chas. E. Lyons, vice presi dent; A. W. Hoffman, vice president; J. M. Thompson, cashier. Austin Stockholders of the First National Bank of Austin, Minnesota, elected Ward D. Dwight cashier to replace K. A. Kramer at the annual stockhold ers meeting. Mr. Kramer resigned as cashier last month to take a position as president and director of the Northfield National Bank and Trust Company, Northfield. Surplus was increased from $200,000 to $250,000 giving the bank a cap ital of $200,000 and a surplus of $250,000. Browns Valley Stanford Ronning, cashier of the Union State Bank, Browns Valley, Minnesota, for the past seven years, has purchased a controlling interest in it from Robert E. Berry, president, and former state banking commission er at an undisclosed price. Mr. Berry will become chairman of the board of the institution, whose total assets were in excess of $2,000,000 on December 31st. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Duluth Bank of Commerce and Savings Two new directors were elected by stockholders of the Bank of Commerce and Savings, Duluth, at their annual meeting. They are Dr. P. G. Boman, Duluth physician and a member of the board of education, and Virgil J. Pedrizetti, a certified public accountant in the city. O. A. Schultz was renamed president. City National Bank A new director was elected and all of the present directors and officers of the City National Bank of Diduth were renamed at the bank’s annual meet ing. Chosen a new director was John Swanstrom, vice president and treas urer of the Diamond Calk Horseshoe Co. He is a native of Duluth and a graduate of the University of Minne sota. H. C. Matzke was reappointed president. Duluth National Bank H. Warner Griggs was promoted from assistant cashier to assistant vice president at the Duluth National Bank. Julian V. Hagberg was renamed presi dent and all other officers and directors were re-elected. First and American National All officers and directors of the First and American National Bank of Du luth were renamed and one member of the bank’s staff was promoted at the annual meeting last month. Kenneth W. Dennis, who has been with the bank’s trust department since 1936, was appointed assistant trust officer, it was announced by Willis D. Wyard, president. Total capital accounts of the bank were increased nearly $300,000 and total deposits increased over the 12 months’ period by more than $4,800,000. Of this increase, savings deposits ac counted for close to $500,000. Loans and discounts showed an increase of over $4,000,000, which reflects the de mand for credit by individuals, busi nesses and industries in this area. A great many loans were to re turned veterans, and as at the yearend there was outstanding on the books of the bank over $2,300,000 in t lo p q p C xT 1 0 3 VI ^ Total deposits now are $68,591,000; savings deposits are $21,463,000; loans and discounts are $15,644,000, and cap ital accounts are $5,819,000. Northern Minnesota National The election of Joseph D. Harrold, prominent Duluth contractor, as a new member of Northern Minnesota Na tional Bank board of directors, was an nounced by Richard L. Griggs, board chairman, following the stockholders meeting. Selmer N. Wallin, a teller at the Pioneer National Bank of Duluth, was promoted to assistant cashier at the bank’s annual meeting. Present of ficers and directors were renamed. Proctor First National John L. Peyton, former cashier of the Pioneer National Bank in West Duluth, was elected vice president of the Proctor First National Bank at the annual meeting of stockholders and directors. Renamed as the bank’s president was H. H. Peyton. Western National Bank A new director was named to the board of the Western National Bank in West Diduth by stockholders at their annual meeting. He is Gordon H. Butler, president of Polaris Concrete Products Co., who fills the place of Harry W. Lanners, Duluth, attorney and prominent civic leader who declined re-election due to pressure of other matters. Alfred Hoel was re-elected president. Elbow Lake H. A. Smith, Elbow Lake, Minne sota, was named president of the Bank of Elbow Lake last month after an nouncing that he had purchased the controlling interest in the bank from St. Olaf College. Other officers elected were M. C. Wedum, Alexandria, vice president; Hugh Nelson, former Douglas county treasurer, cashier, and Harriett Rosengren, assistant cashier. Elk River At the annual meeting of stockhold ers of the First National Bank of Elk River, Minnesota, the officers elected were L. K. Houlton, president; S. R. Houlton, and Roy Ellingson, vice presidents; Stanley Wheaton, cashier, and Merlin Hetrick, assistant cashier. Faribault Dr. Carl Hansen, veterinarian, and Donald F. Oches, secretary-treasurer of Oches Brothers, Faribault, Minne sota, department store, were elected to the board of directors of the Secu rity National Bank at the annual stock holders meeting. Roger W. Peavy was re-elected presi dent. All other directors and officers were renamed. Goodhue John E. Blomquist was elected president of the Goodhue State Bank, Goodhue, Minnesota, at the annual meeting of the stockholders. Also elected were D. D. Center, vice presi dent; W. N. Englund, cashier and B. B. Barry, assistant cashier. Elected to the board of directors were Mr. BlomN o r t h w e s t e r n B a n ke r, F e b r u a r y , 1948 36 Minnesota News quist, Center, South Dakota; Mr. John son, M. S. Kinseth and F. G. Sjoblom. W. R. Sawyer is retiring president. as a bank officer since 1903. Mr. Pat terson will continue as a director. Hibbing Grand Rapids Homer I. Bastien is the newly elected cashier of the First National Bank of Grand Rapids, Minnesota. He succeeds Grover P. Mitchell, who resigned last month to become the executive head of the First National Bank of Eveleth. The directors of the bank also made another change when William G. King was designated as executive vice presi dent. F. E. King is the bank’s presi dent. Henning Dr. A. J. Lewis was elected president of the First National Bank of Hen ning, Minnesota. He succeeds R. R. Patterson, who resigned after serving First National Bank M. T. Mahan, formerly cashier, was named vice president of the First Na tional Bank at Hibbing, Minnesota, and James R. Godrey was appointed to Mr. Mahan’s post. Merchants and Miners Bank Max H. Barber has been elected president of the Merchants and Miners Bank, Hibbing, Minnesota, to succeed the late A. L. Egge. In addition to Mr. Barber, other Merchants and Miners officers include: Andrew G. Anderson, vice president; S. J. Egge, executive vice president; E. R. Sundberg, cashier; A. O. Hulstrand and M. V. Borgeson, assistant cashiers. Hinckley The Farmers and Merchants State Bank of Hinckley, Minnesota, changed ownership last month when the estate of A. E. Eddy sold the controlling in terest in the bank to several Hinckley residents, after the death last month of Mr. Eddy. R. A. Nelson, J. F. Dan ger, C. C. Wickstrom, Dr. A. W. Nyline and Mrs. Eddy are now stockholders. The new president of the bank will be Mr. Danger and Mr. Nelson will continue as cashier and will become the bank’s executive officer. The rest of the bank staff remains the same. International Falls B. B. Kotilinek was elevated from the executive vice presidency to the presidency of the International State Bank, International Falls, Minnesota, by directors at their annual meeting. Orman Effertz was promoted to as sistant cashier and Ed A. Paulson to teller. Kalispell The annual meting of the stockhold ers of the First National Bank of Kalispell, Minnesota, was held last month with the following elected to the board of directors: F. M. Burks, chairman; H. C. Keith, A. F. Winkler, Gilbert Miller, Clifford Haines, H. G. Mebust, and Robert Leslie. Mr. Miler and Mr. Haines are new members of the board, increasing the member ship from five to seven. Le Roy First National Bank AND MEN WITH A MISSION The farmer like any other businessman hires help, buys machinery, makes plans, schedules his work, processes and markets his produce. In addition he coordinates all the intricate details for running the farm so he is the executive manager of his business as well. This is a large and comprehensive job by anybody’s stan dards. In years past many a farm lad has for saken the farm in search of a less arduous means of earning a livelihood. Lately modern farm machinery has progressed a long way toward the elimination of time consuming and “back breaking” jobs that all farmers considered out and out drudgery. To get the job done in a hurry with a minimum of hard work M i n n e a p o l is - M o l in e has designed and pro duced a well rounded line of m o d e r n m a c h i n e r y . There is still plenty of hard work on most farms and therefore Minneapolis-Moline is doing its utmost to pro duce more and more modern machinery so that the farmer may overcome most of the adversities and hardship of his m i s s i o n in supplying the ever increasing demand for food and fibre. Bankers are cooperating with MM Dealers in the extension of counsel and credit to progressive farmers for the pur chase of MM M o d e r n M a c h i n e s — de pendable, economical “machine tools” of the industry that is basic to our present and future economic well being. M inneapolis -M oline P ower I mplement C ompany M IN N EAP O LIS 1, M IN N E S O TA , J . S. A. N o r t h w e s t e r n B a n ke r, F e b r u a r y , 1948 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis At a board meeting following the stockholders meeting of the First National Bank, Le Roy, Minnesota, the following officers were elected: C. B. Hall, board chairman; M. E. Lappin, president; F. Stuart Hale, vice presi dent; W. G. Prosser, vice president; C. O. Strom, cashier; and G. H. Sumnicht and Alma Dowd, assistant cashiers. First State Bank Fredric Bhend was added to the board of the First State Bank of Le Roy. Other members, re-elected, are: F. T. Young, G. A. Halver, John Meyer, H. Hawkins, Matt Klassy, M. B. Morse, O. H. Eastwold and J. L. Moser. Luverne H. L. Smith, president of the Luverne National Bank, Luverne, Minne sota, has announced that Henry C. Lehr of Sioux Falls has taken up his duties as assistant cashier of the Luverne bank. Mr. Lehr has been con nected with the National Bank of South Dakota at Sioux Falls and has lived there for the past five years. Litchfield The First State Bank of Litchfield, Minnesota, held its annual meeting last month. Officers elected were G. A. Hollaar, president; D. N. Tharalson, vice president and cashier, and Donald Nordlie, assistant cashier. MORE MINNESOTA NEWS ON PAGE 42 37 HE Thirteenth Avenue State Bank, only state bank chartered in Minne apolis since 1929, has opened for busi ness in northeast Minneapolis. It has a capital and surplus of $140,000. Raymond J. Julkowski is president; Walter A. Kostick, vice president; Ray IVIikolajczyk, vice president and cash ier; Walter S. Larson and Dr. Walter S. \\rarpeha, directors along with the officers. T Roger R. Shepard, St. Paul, has been reappointed class C director and chair man of the board of the Minneapolis Federal Reserve bank and federal re serve agent. W. 1). Cochran, Iron Mountain, Michigan, was renamed deputy chairman of the bank. Henry E. Atwood, president of the First Na tional Bank of Minneapolis, was reap pointed by the bank’s directors to the federal advisory council. Malcolm E. Holtz, Great Falls, Montana, and R. M. Harris, Columbus, Montana, have been reappointed by the board as directors of the bank’s branch at Helena, Mon tana. R. C. Lilly, chairman of the board of the First National Bank of St. Paul, has been elected a trustee of the Col lege of St. Catherine, St. Paul. Malcolm B. McDonald has been elected president of First Edina State Bank. He succeeds Alfred E. Wilson, who resigned because of pressure of duties as vice president and chairman of the trust committee of First Na tional Bank of Minneapolis, with which First Edina State is affiliated. In addition to his new duties, Mr. McDonald will continue as a vice president of First National Bank. Mr. Wilson will continue as a member of the First Edina State board of di rectors. Previously, the election of James E. Dorsey, Jr., as an assistant cashier of First Edina State had been announced. Seventeen state banks in St. Paul, West St. Paul and South St. Paul showed gains of $6,731,520.33 in de https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis posits last year, according to a report by F. A. Amundson, Minnesota state banking commissioner. Deposits increased to $79,099,367 as against $72,367,647 a year previously. Assets climbed to $85,416,877 from $78,266,184, and loans and discounts mounted to $18,882,772 from $13,411,492. Directors of the Camden Park State Bank of Minneapolis at the annual meeting of stockholders voted to in crease capital stock of the bank to $100,000, double the present amount. Directors of First Robbinsdale State Bank have advanced Sven Grundstrom from assistant cashier to cashier. Joseph W. Roche, who has been serv ing as vice president and cashier, will continue as vice president. In banking since 1925, Mr. Grund strom started his career with the for mer Metropolitan National Bank. Later he was associated with First Minnehaha National Bank and First Hennepin State Bank before joining First Robbinsdale as an officer in 1940. Directors of First Service Corpora tion, operations subsidiary of First Bank Stock Corporation, at their an nual meeting in St. Paul elected Au gustus H. Kennedy chairman of the board of directors and Ellwood C. Jenkins president. All other official positions were filled by re-election of present officers. Mr. Kennedy, who is president of First Bank Stock Corporation, has been president of First Service Cor poration since 1941. As chairman of the board he succeeds C. T. Jaffray who will continue as a director. Francis O. Kelly has been elected assistant secretary of the Northwest ern Mortgage Company, according to an announcement by J. J. Fehr, presi dent. Mr. Kelly has been a member of the company’s staff since 1937 as farm manager and supervisor. The Northwestern Mortgage Com pany is affiliated with Northwest Bancorporation. For the fourth successive time, Min neapolis area banks started off a new year with more than $1,000,000,000 on deposit. At the close of business De cember 31, 1947, total deposits of the 14 national, nine state and one savings banks reached $1,097,665,552 for the second highest total since the 1945 peak of $1,158,901,799. First National Bank of Minneapolis has taken first place with deposits totaling $372,735,406. Northwestern National Bank, which had been first for five years, had deposits of $362,260,088. Northwestern topped First National in loans, however, with $108,179,708 to $95,280,878 for the latter. Jay W. Craig and F. Wesley Weldon have been elected directors of Colum- SPECIAL OFFER Accident Insurance, $5000 Principal Sum for only $2.00 Paid Up in Full to the Middle of next June. MINNESOTA COMMERCIAL MEN'S ASSOCIATION 2550 Pillsbury Ave. So. Minneapolis 4, Minnesota N o r t h w e s t e r n B a n ke r, F e b r u a r y , 1948 38 Minnesota News bia Heights State Bank. Their election was made possible by sale of stock to them by L. A\T. Hill, St. Paul, former president, according to H. S. AVoodward, executive vice president. Other officers elected were Arthur L. Gluek, president; H. AAT. Mogg, vice president; C. T. Olsen, cashier, and Fabian Eickhoff, newly elected assistant cashier. Deposits in the Farmers and Me chanics Savings Bank of Minneapolis totaled more than $150,000,000 at the close of business January 10th, John deLaittre, vice president, announced. Eugene R. Locke has been promoted from assistant cashier to cashier of the First Minnehaha National Bank, Minneapolis, J. G. Byam, president, announced. Arvid A. Lund, formerly vice president and cashier, will con tinue as vice president. Garraugh, Morrow Peyton and Ralph F. Peterson were elected assistant cashiers. Homer C. Luiek was elected manager of the credit department. O. Jack Talbot was elected assistant Joseph F. Ringland, president of Northwestern National Bank of Min neapolis, announced election of eight new officers and promotion of two others. Mr. Ringland also announced reelection of all present directors and officers, with exception of Henry J. Riley and Harry S. Quiggle, who re tired as of December 31st. In the bank’s commercial depart ment, T. AA7. Pelton, Charles T. AleT. W. PELTON 1" ’ P E Y T O N Named Assistant Cashiers co llectio n se rv ic e • • • • g eared to yo u r need for speed Your Bank wants speed when it presents a check or note for collection. The kind of speed that means prompt presentation and earliest availability of funds. At American National we’re prepared to provide that kind of action. Our staff is experienced, dependable, skilled at operating the high speed machines that make swift service possible. We’d like to have you visit us to see this service in action. Meanwhile, we welcome your inquiry with the view to securing you the most advantageous mail and express scheduling — both by rail and air. AMERICAN NATIONAL BANK AND T R U S T C O MP A N Y OF CHI CAGO MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION N o r t h w e s t e r n B a n ke r, F e b r u a r y , 1948 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 2 it Ç/lfÆi tyécrjAhÿ/cm R. E. C O N N , JR. Trust Officer H. C. L U IC K M gr., Credit Dept. secretary of the bond department. Robert E. Conn, Jr., was elected trust officer in the trust department. Two officers of the trust department, Paul S. Brorby and Raymond Clausen, were promoted to assistant vice presidents. At the bank’s Lake street office, C. Addison Dahl was elected assistant manager. At the annual meetings of directors of Minneapolis affiliates of Northwest ern National, several new directors were elected. Frank C. O’Brien, president, an nounced re-election of all present di rectors and officers of Second North western National Bank. George Chris toferson, president of Third North western National Bank, announced election to the board of L. S. Grossman and James Massie. Clyde Jorgen sen, president of Fourth Northwestern National Bank, announced re-election of all present officers and directors. At Fifth Northwestern National, Rustan O. Thayer, president, an nounced election of Lyle AA7right, to the board. L. A. Egler, president of Central Northwestern National, an nounced election of Charles D. Pyle to the board. Frank F. Sefeik, president, announced re-election of all officers and directors of Northwestern Nation- Minnesota News 39 al Bank of Hopkins, Minneapolis sub urb. John I/. Larson has retired as assist ant secretary of Farmers and Me chanics Savings Bank of Minneapolis, according to Henry S. Kingman, presi dent. He was elected assistant secre tary in 1934 and the following year became head of the combined farm real estate and farm loan portfolio. Headed by A. L. Ritt, president, all officers and directors of Midway Na tional Bank of St. Paul have been re elected. facilities , fa cts, contacts ■ is at your service *n ^ 1S Henry E. Atwood, president of the First National Bank of Minneapolis, has been elected a vice president of the Minneapolis area Boy Scout Coun cil. Carl 1). Strom was elected cashier of the First Bloomington-Lake Na tional Bank of Minneapolis. Leonard R. Oberg, formerly vice president and cashier, will continue as vice presi dent. Paul W. Anderson, president of Farwell, Ozmun, Kirk and Company, St. Paul, has been elected a director of Empire National Bank and Trust Com pany of St. Paul, C. E. Johnson, presi dent, announced. Mr. Anderson is a civic and business leader in St. Paul, being a former president of the St. Paul Association of Commerce. E. Walter Engstrom and James A. Galbraith, assistant cashiers, have t h e F W W i« ® » « “ * • ith onsin with complete, modern f a d , , n the-ground knowledg . • Of Wisconsin busi- stry agriculture... plus correspo" en ,,er9 2 % o f all the hanks thro g co n ta cts '" 1 . nd always , , p At your service out this s a • beyond , to serve in many ways that g ready „„tin e efficiency. ( mere routine the usual limits of me hankers BANKS ft* 0 GeoRCE 1 ]. RlCHAR° DONA.ED L a w le ss Di vi s i on yice President President President Harper been promoted to assistant vice presi dents by Midland National Bank of Minneapolis, Arnulf Ueland, president, announced. All other officers and the 21 directors were re-elected. Mr. Uel and also announced the bank’s quar ters will be expanded and remodeled. Election of Samuel Mairs to the board of directors of First National Bank of St. Paul was announced by Julian B. Baird, president. Mr. Mairs is chairman of the board of directors of Archer-Daniels-Midland Company. Mr. Baird also announced that the bank paid dividends amounting to $720,000 in 1947, maintaining an un interrupted dividend record of 83 years. Herbert C. J. Olson has been elected vice president of Fidelity State Bank of Minneapolis, C. Herbert Cornell, president, announced. Ferdinand Ringoen was promoted from credit man ager to cashier, William Tustison from installment loans department manager to assistant cashier, Leo Hunt from https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis FIRST WISCONSIN NATIONAL BANK OF M I L W A U K E E • W i s c o n s i n ' s 8a n k f o r B a n k s N o r f h w e s t e r n B a n k e r, F e b r u a r y , 1948 Minnesota News 40 installment loans department assist ant manager to assistant cashier, and F. Walter Grimes to auditor. Three officers of the First National Bank of St. Paul were promoted at the hank’s annual meeting, Julian B. Baird, president, announced. Promoted were Wilfred I). Provan, from assistant cashier to assistant vice president; Lee A. Sauer, from assist ant cashier to assistant vice president, and Frederick W. Manke, from assist ant cashier to comptroller. Named as sistant cashiers were Emmett T. Mc L. FR E D R IC K SE N President M AR K A. W IL S O N Vice President W IL L IA M G. N E L SO N Vice President W IL L IA M C. SCH ENK Asst. V. Pres, and Cashier C LIFFO R D L. A D A M S Asst. Vice President JOH N S. H A V E R Asst. Cashier JAM ES L. SM IT H Asst. Cashier and Auditor K IN L E Y W . SM IT H Asst. Cashier Walter J. Bergquist. Janies G. Goblisch, cashier, was promoted to vice president, and Russell H. Johnson was named to succeed him as cashier. Conrad L. Hedberg was elected assist ant cashier. Herbert I*. Buetow, director of First State Bank, has Our Group One Meeting Officers and directors of the Live Stock National Bank of Sioux City extend a warm welcome to its many friends who will attend our annual meeting of Group 1, February 12, in Sioux City. W e hope you will derive much profit and pleasure from this convention. Our officers likewise gain a great deal from this meeting. Each year we look forward to greeting our many correspondents and friends and to the exchange of ideas. Be sure to come to our group meeting this month. t 1 Elected directors of First Grand Avenue State Bank, according to Frank H. Delaney, president, were Richard Ordway, Winter Dean and Merchants Donnell and Donald W. Buckman. CARL Other St. Paul banks in the First Bank group also announced elections and promotions. h e OF SIOUX B CITY, an k IOWA ... ............................................................... e " t / ie Hlember Federal Deposit Insurance Corporation N o r t h w e s t e r n B a n k e r, F e b r u a r y , 1948 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Sam W . Campbell, former special Minnesota state assistant attorneygeneral, has been elected a vice presi dent and trust officer of Marquette National Bank, Minneapolis. Russell L. Stotesbery, president, also announced that Walter S. V. Brown, president of Brown Steel Tank Com pany, Minneapolis, was named a di rector to fill a vacancy left by the death of Harry W. White of the White Investment Company. George S. Coonrod was promoted from assistant cashier to assistant vice president. All other officers and directors were re elected. A. L. Ritt was re-elected president of Highland Park State Bank of St. Paul. John 1). Rongitsch was named assistant cashier. Election of Curtis C. Goodson, Benj amin G. Griggs and William AV. Skin ner as directors of First Trust Com pany, St. Paul, was announced by Louis S. Headley, president. Harry L. Holtz was elected an as sistant trust officer. Stanier E. Mason, formerly with First Service Corpora tion, has become a member of the firm’s staff as an investment assistant. All officers and directors of ChicagoLake State Bank, Minneapolis, were re-elected at the directors annual meet ing. Edmund Jones, president, said the bank’s surplus account was in creased from $50,000 to $75,000, bring ing its capital structure to $125,000. Owen Harris has been promoted from auditor to assistant cashier of University National Bank, Minneap olis, according to an announcement by Russell L. Stotesbery, president. All other officers and directors were re elected. Minnesota bank debits increased 22 per cent in 1947, the Minneapolis Fed eral Reserve Bank reported. Debits last year totaled $22,926,379,000, an alltime record. Minneapolis led the state with $12,383,535,000 of debits in 1947. In St. Paul, debits totaled $5,338,788,000 in 1947, a 17 per cent gain from 1946. : L ive S t o c k Na t í o n a l been elected president of the bank. He succeeds Arthur W. McNee. Arthur W. Melander was elected cashier. f C. F. Codere, a director of First Na tional Bank of St. Paul, First Bank Stock Company and First Trust Com pany, has been elevated to chairman of the board of St. Paul Fire and Ma rine Insurance Company. He former ly was president of the firm.—The End. 41 South Dakota NEW S A. E. DAHL President Rapid City GEORGE M. STARRING Secretary Huron second vice president and C. H. Ander C. H. Lockhart was elected presi son was elected treasurer. Fred Roesch, vice president of the dent of the First Citizens National Bank of Watertown, South Dakota, at First National Bank, is a retiring di rector. the annual meeting. He succeeds L. T. Morris, president since 1933 when the bank was formed George Nelson Funeral services for George Nelson, by consolidation of two older institu tions, one of which, the First Citizens, 76, a longtime resident and former he also headed. He was renamed business man of Viborg, South Dakota, were held there last month. chairman of the board. Mr. Nelson, who was born in Carroll, The bank at its annual meeting also elevated L. C. Barger and John Illinois, came to Viborg 50 years ago. S. Holen from the posts of assistant After teaching school, he entered the banking business and was for many vice presidents to vice presidents. Mr. Lockhart previously had been a years president of the First National Bank of Viborg. vice president. R. D. Goepfert was renamed a vice He is survived by his widow and president, and other officers also were several children. re-elected to their previous positions. The First Citizens National Bank’s Succeeds Father John N. Thomson has succeeded his year end statement shows total re sources of $11,853,086. Capital stock is father, James S. Thomson, as president $150,000, surplus is $150,000 and undi of the Bank of Centerville, South vided profits and reserves are $204,545. Dakota, following the latter’s retire Deposits on December 31st were $11,- ment. He will remain as chairman of the 348,540. board of directors, however. The elder Mr. Thomson has been associated Elect New Officers At the annual stockholders’ meeting with the Bank of Centerville since of The Bank of Union County, Elk 1890, for almost 58 years of continuous Point, South Dakota, officers elected service. Elmore L. Johnson was named vice were: O. D. Hansen, president; E. R. Arneson and O. D. Hansen, Jr., vice president; Leonard M. Nelson, cashier, presidents, and H. Boomgaarden, cash and Phyllis L. Norgren, new assistant ier. O. D. Hansen formerly was execu cashier. Deposits in the bank Decem tive vice president and the younger ber 31st totaled $2,546,884. Hansen had been assistant cashier. Observe 254h Year Directors elected were A. J. Beck, Celebrating the 25th anniversary of chairman of the board, who was for merly president also; O. D. Hansen, the founding of the business institu E. R. Arneson, Edward Holden and tion with which they are associated, O. D. Hansen, Jr. Named secretary employes of the Citizens State Bank of Clark, South Dakota, and affiliated of the board was Mr. Boomgaarden. branches at Bradley, Vienna and Wil low Lake, enjoyed a birthday event Heads Civic Group L. H. Ickler, president of the Aberand party in Clark recently. The event started with a bowling deen National Bank, was named to head the Aberdeen, South Dakota, party, followed by a dinner party at Civic Association at a meeting of the a local cafe, a party in the lobby of the local banking house and a theater board of directors last month. He succeeds Henry J. Schmitt, edi party thereafter at the Clark Theatre. tor and publisher of the AmericanNews, as president. Make Annual Report Elected first vice president, succeed The Mitchell National Bank of Mit ing Wilbur T. Kearns, was Charles A. chell, South Dakota, distributed to all Howard, Jr. H. E. Kriesel was named stockholders and bank patrons one of Heads W a te rto w n Bank https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis the most informative annual reports published by any South Dakota bank. After a brief descriptive explanation of each phase of bank operations dur ing the past year, the annual report pays tribute to M. F. Patton who died a few weeks before the year end. Mr. Patton was president of the Mit chell National Bank for 24 years, pre viously having served the bank in various capacities since 1904. Every annual report then was signed personally by J. M. Patton, vice presi dent, and J. N. Shelby, cashier. Figures from the December 31st statement show total capital accounts of the bank as $307,907 and deposits of almost $9,400,000, an increase of $2,400,000 over 1946 figures. S io u x F a lls N e w s S. HARKTSON, president of I the National Bank of South Da kota, was re-elected a director of the Luverne (Minnesota) National Bank. Henry C. Lehr, who had been auditor of the National Bank of South Dakota, with which he was connected for about five years, has become assistant cash ier of the Luverne (Minnesota) Na tional Bank. TOM Carl F. Gray liT, president of the Wilson Storage and Transfer Com pany, was elected to the board of di rectors of the Northwest Security National Bank at its annual meeting. Herman F. Veenker retired from the board, and John O. Barton, retiring as an active vice president of the bank, remained as a board member. Tony Westra became an assistant cashier while retaining his position as agri cultural and livestock representative, President Ralph M. Watson said. All other officers and directors were re elected. Ralph M. Watson, president of the Northwest Security National Bank, enjoys calling attention of his Demo crat friends to the new Roosevelt dimes. By using a magnifying glass and looking closely under Roosevelt’s face and to the left of the year number, one can see the initials J. S. and then Mr. Watson tells his Democrat friends that the initials are those of Joe Stalin —just to watch ’em howl. W. C. Duffy, president of the Union Savings Bank, has been elected a di rector of the Sioux Falls chapter of the Izaak Walton league. C. A. Christopherson, chairman of the board of directors of that institu tion, was elected trustee of the First Congregational church at its annual business meeting. N o r t h w e s t e r n B a n ke r, F e b r u a r y , 1948 42 South Dakota News Sioux Falls banks started 1948 with deposits of $96,684,226, believed to be the highest ever recorded at the an nual bank call in the city’s history. That figure represents a 15 per cent increase over deposits listed by the five banks here at the beginning of 1947. The total then was $83,827,667. Loans and discounts show a 30 per cent increase over the January, 1947, figure. At the annual bank call this year, loans and discounts totaled $20,367,637. A year ago the total stood at $15,591,068. Bank statements as of December 31, 1947, showed: Loans and Deposits Discounts N ’west Sec. Nat’l _____$47,087,033.44 $9,159,748.86 First National ........... 21.999,513.29 5,505,788.54 Nat’ l Bk. S. Dak.......... 18,792,396.59 3,420,695.15 Union Savings ........... 5,965,166.46 1,457,581.55 Sioux Valley ............. 2,840,116.76 823,823.16 The figures for the Northwest Se curity National Bank and the National Bank of South Dakota include figures of those institutions’ branch banks in South Dakota. The National Bank of South Dakota has installed the new type Burroughs teller machine which provides check ing account customers with a regis tered deposit receipt for each deposit made, eliminating the need for pass books. It is among the first banks in this area to adopt the “registered de posit receipt” plan. ers State Bank of Osseo, Minnesota, met last month for their annual meet ing. All old officers were re-elected and Miss Lorna Mae Hiller was named assistant cashier. Miss Hiller is the first woman to ever hold an office in the Farmers State Bank. Spring Valley Three officers of the First National Bank of Spring Valley, Minnesota, were advanced at the annual meeting of stockholders and directors. James Sample, former president, was elected chairman of the board of directors, and George C. Gullickson, former cashier, was advanced to the presidency. LeRoy Fiegel, former asistant cash ier, was named cashier to succeed Mr. Gullickson. Kenneth Churchill and Miss Elsa Schoebel were renamed as sistant cashiers. St. James J. E. Hegstrom was named president of the First National Bank at St. James, Minnesota, at the directors meeting. W. C. Wagner was advanced from assistant cashier to cashier and will take over the desk and duties of Mr. Hegstrom. T. C. Olsen is assist ant cashier. Willmar Election of Fred W. Riegger as a vice president of the First Security National Bank of Willmar, Minnesota, was announced by O. F. Grangaard, president, following the annual meet ings of stockholders and directors. Mr. Riegger returns to that section of the state after two and one-half W. C. Duffy, president of the Union Savings Bank, was re-elected presi dent of the Sioux Council, Boy Scouts of America, at its annual meeting in Sioux Falls. The council comprises 33 counties in South Dakota, Iowa and Minnesota. Mrs. G. E. liindroth was elected as sistant cashier of the Sioux Valley Bank, with which she has been con nected for the past 2% years.—The End. MORE MINNESOTA NEWS Montevideo All officers of the Security National Bank of Montevideo, Minnesota, were re-elected at their annual meeting. There was one change in the board of directors, George C. Klein of Chaska being elected to succeed the late Otto Schultz. New Ulm Stockholders of the Farmers and Merchants State Bank of New Ulm, Minnesota, at the annual meeting elected the following directors for the ensuing year: Ben I. Vetter, T. O. Streissguth, and John P. Heymann. Mr. Heymann is a successor to the late Dr. J. H. Vogel on the board. Osseo The board of directors of the Farm N o r t h w e s t e r n B a n k e r, F e b r u a r y , 1948 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ROBERT CONN, Northwestern National Bank, received the Bronze Star from General M cLain in M in neapolis recently for meritorius service performed while a Japanese prisoner. Mr. Conn, already the holder o f the Silver Star and the Purple Heart, kept secret records of Japanese atrocities, names and other pertinent data while a prisoner, a ft er being one o f the hundred sur vivors o f the Bataan Death March. The records kept by Mr. Conn later contributed greatly towards the conviction o f a number of Jap anese army men at the war crimes trials. Mr. Conn returned to the Northwestern N ational’ s trust de partment after the war. years as president of the Northfield National Bank & Trust Company from which position he recently resigned. Winona First National Bank At the First National Bank of Winona, Minnesota, the retirement of E. E. Shepard as vice president and trust officer and the election of R. C. Hinze as vice president and trust of ficer was announced. Mr. Hinze had been vice president and assistant trust officer. Merchants National Bank Promotion of Ray H. Bublitz from assistant cashier to cashier, succeeding H. A. Tornow, who was elected vice president, and the election of C. D. Tearse as chairman of the board was announced at the Merchants National Bank of Winona following the annual meeting. Mr. Tearse has been vice president. Winona National and Savings Bank Election of two additional directors, Ralph Boalt and Douglas B. Robinson, and the promotion of William P. Theurer from assistant trust officer to the additional office of assistant cash ier, took place at the meeting of the Winona National and Savings Bank. FIRST NATIONAL CORRE SPONDENT CONFERENCE (Continued from page 18) E. D. Baughman, secretary and man ager. During the discussions ample oppor tunity was afforded for questions on the subjects covered, and members of the operating department of the First National Bank were available after the sessions to answer more detailed questions. The bankers were guests of the First National Bank for a luncheon, recep tion and dinner on the first day of the meeting, and at a luncheon on the sec ond day, folowing which a visit to all departments of the bank was ar ranged. The First National Choral Club and instrumental quartet provided music at the dinner, with the speaker of the evening, General Robert E. Wood, chairman of the board of Sears Roe buck & Company and a director of the First National Bank, introduced by Bentley G. McCloud, president of the bank. General Wood says the United States is still a comparatively young country, capable of continued development, and opportunity still knocks at many doors. Industry must keep alive to its opportunities. Much capital will be needed in the future, in view of which, banking is coming into its greatest era. If bankers will continue to exercise their courage, character, and ability, they can look forward to remarkable progress for the next ten years. 43 North Dakota NEWS F. A. FOLEY President Rolta Returns to Jamestown Roy M. Christensen has returned to Jamestown, North Dakota, after an ab sence of almost six years, to assume an official position with The National Bank of Jamestown, with which insti tution he was associated from 1937 to 1942. The directors of The National Bank of Jamestown elected him assist ant cashier at a recent meeting. Mr. Christensen began his banking career in Minneapolis in 1933, follow ing which he was employed by the Potter County Bank at Gettysburgh, South Dakota, from July, 1935, until February, 1937, when he moved to Jamestown to become associated with The National Bank of Jamestown. He left there to go into service in July of 1942, serving three and onehalf years in the United States Army Signal Corps, 21 months of which were spent in Headquarters, United States Forces, China-Burma-India Theater at New Delhi, India. He returned to civilian life in the spring of 1946, since which time he has been associated with the Rolette County Bank of Rolla, as cashier. Mr. Christensen will specialize in consumers finance and installment credits. Approve Increases The state banking board has ap proved increases in common stock of two state banks, R. S. See, secretary, announced recently. The Security State Bank of Hannaford, North Dakota, was given permis sion to raise its common stock from $20,000 to $25,000. An increase from $35,000 to $50,000 was approved for the Merchants Bank at Rugby. C. C. WATTAM Secretary Fargo Mr. Haslam was born in Lucan, On tario, Canada, and had lived in Devils Lake 58 years. He formerly operated a general store there, and for many years was treasurer of the different Masonic lodges; also was city and school treasurer for approximately sixteen years and was a director of the Ramsen County National Bank. Increase Interest Rates The Bank of North Dakota has an nounced an increase of one-fourth of 1 per cent per annum in interest rates paid on time deposits of public funds. Manager H. C. Bowers, in Bismarck, said the increase was made possible by a boost in federal government in terest rates which resulted in in creased revenue. Under the new schedule Mr. Bow ers said the bank will pay threefourths of 1 per cent per annum on six-month maturity deposits and 1 per cent per annum on 12-month deposits. The Stock Growers Bank in Napo leon, North Dakota, has doubled its capital stock from $25,000 to $50,000. Cashier George Heitmann says that the increased capitalization was made because of larger deposits which now total nearly $2,300,000. Honor Retiring Banker A new banking exchange has been opened in Stanton, North Dakota, by R. J. Bohrer in a former bank build ing. First customer when the exchange began receiving deposits was Herb Lang. T. A. Haslam Devils Lake Deposits Up Funeral services for T. A. Haslam of Devils Lake, North Dakota, were held recently in Seattle. Deposits in Devils Lake, North Da kota, banks vaulted to new highs in the past year, with over $11,000,000 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Move Exchange Office The First State Bank of Munich, North Dakota, has moved the Osnabrock Exchange from the First Na tional Bank Building to the place formerly known as the Great Western Bank Building. O. H. Olson O. H. Olson, 82, president of the First State Bank of Sharon, North Dakota, and resident of Steele county nearly 60 years, died in Sharon re cently. Mr. Olson served as register of deeds of Steele county from 1908 to 1912, and in 1913 entered the banking busi ness in Sharon in the bank which later was named First State Bank. He had also served on the school board and in other civic posts. Double Capital Stock Civic and business leaders of Cooperstown, North Dakota, joined recent ly in a testimonial dinner honoring A. G. Hoel, assistant cashier of the First State Bank, who has retired after 37 years’ service. A native of Lanesboro, Minnesota, Mr. Hoel moved to North Dakota as a young man and served as president and general manager of the Hannaford Mercantile Company at Hannaford, from 1906 to 1911. He then joined the former First National Bank of Cooperstown and continued as an officer when it became the First State Bank in 1938. Open New Exchange listed in the year-end statements of the First National Bank and Ramsey County National Bank. Deposits totaled over five times the total at the close of 1940, the last year before crop returns increased to reach new records in the last two years. The First National Bank lists de posits of $5,856,323 at the close of the year compared to $5,321,048 at the end of 1946 and $1,254,791 at the close of 1940. The Ramsey County National Bank had $5,282,332 in deposits compared to $4,831,396 on December 31, 1946, and $893,825 at the end of 1940. Add Directors in Minot Two new directors of the American State Bank in Minot, North Dakota, were elected at the annual meeting of stockholders, increasing the board from five to seven. Elected directors were Alton C. Anderson, one of the owners of Ander son Ace Hardware stores in Minot, Bismarck and Jamestown, and T. A. Solheim, who recently was named vice president of the bank. The directors voted to increase the surplus of the bank from $35,000 to $50,000. Changes in Fargo Two new directors, one to fill a va cancy caused by death and the other adding to the board, were elected at the annual meeting of the Dakota National Bank of Fargo, North Dakota. John L. McCormick, president of the Northern Improvement Company, was named a Dakota National director to fill the vacancy caused by the recent death of Maurice Kaufman. A. J. Daveau, president of the Daveau Music Company, was elected as an additional director. N o r t h w e s t e r n B a n ke r, F e b r u a r y , 7948 44 For 92 Years SOUND BANKING SERVICE O FFICERS H E R B E R T M. B U SH N E LL President E L L S W O R T H M OSER E xecutive Vice President V IC TO R B. C A L D W E L L ........................ Vice President H. M A L L O R Y ...................... Vice President R IC H A R D TH O M A S F. M U R P H Y ...........................Vice President C A SP E R Y. O F F U T T ............................... Vice President E D W A R D W . L Y M A N .............................V ice President H A R R Y E. R O G E R S...................Asst. Vice President A U S T IN L. V IC K E R Y .............. Asst. Vice President H A R O LD T. U E H L IN G ..............................Trust Officer ARTH UR I). A N D E R S O N ........................ .. ...... Cashier JA M E S L. SH IE L D S ........................ A ssistant Cashier N E LS L. SH O LIN .............................A ssistant Cashier E LD R ID G E HENRY C. M cE L H A N E Y . ...Asst. Trust Officer B. P IE R P O N T ................ Asst. Trust Officer G EO RG E E. W IN S L A D E ............ Asst. Trust Officer LEO M. B R O W N ............................................ C om ptroller N o r t h w e s t e r n B a n ke r, F e b r u a r y , 1948 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 45 W. Lyman was promoted from as sistant vice president to vice presi dent, and George E. Winslade of the trust department was promoted to as sistant trust officer. Mr. Lyman is 36 years old, was born Leads Southeast Banks Edgar McBride Edgar McBride, 55, former president of the Nebraska Bankers Association and active in state Democratic circles, died at his home in Blue Hill after a lengthy illness. Mr. McBride was president of the Commercial Bank at the time of his death. A delegate to the 1936 National Democratic Convention at Philadel phia, Mr. McBride had served the party in many capacities. He was chairman of the executive The First National Bank of Falls City is the first in southeast Nebraska to have deposits aggregating six mil lion dollars. The bank’s latest statement shows deposits of $6,038,316.87. E. A. Duff Edwin Allen Duff, 72, banker and president of the former Duff Grain Company, died in Nebraska City, Ne braska, last month. A native of McGregor, Iowa, Mr. Duff was president of the First Na tional Bank of Syracuse and the First National Bank of Unadilla and was a director of the U. S. National Bank of Omaha. Two Promotions GEORGE E. W IN S L A D E Assistant Trust Officer with the U. S. National The board of directors of The United State National Bank of Omaha, Nein Lincoln, Nebraska, attended grade and high school there and graduated from the University of Nebraska in 1934. He was five years with the First National Bank of Chicago, coming to The United States National Bank in 1940. Mr. Winslade, 35 years old, was born in Omaha, lived in Schuyler and Ra venna, Nebraska, graduated from Ra venna high school in 1929 and from the American Institute of Banking in 1938. He was employed by the bank in 1930 and has been with the trust department since 1940. E D G AR M cB R ID E council of the Nebraska Bankers As sociation from 1941 to 1942 and in 1944 was elected association president. Mr. McBride started his banking career as cashier of the Commercial Bank of Blue Hill in 1916 and in 1933 was named president. He also became treasurer and a director of the Farm ers Grain and Stock Company of Blue Hill and the Glenwood Telephone Company of Blue Hill. A former district Legion command er, Mr. McBride had been chairman of the Blue Hill City Council more than 20 years. His wife and four children survive. With Examiner s Office Joe V. Johnson, Jr., Tecumseh, Ne braska, has withdrawn as a student from the University of Nebraska to accept an appointment as assistant na tional bank examiner, having success fully passed the examination for the position. He has been assigned to the 10th Federal Reserve District and went to Kansas City to report for duty. Doubles Capital Stock Due to the tremendous growth ex perienced since its founding in 1943, the York State Bank, York, Nebraska, has doubled its capital stock. Announcement of the capital stock increase came from Dean Sack, found er and president of the banking con cern, and from Andrew Grosshans, J. A. Boyle, Cliff E. Miller and Hollis Gewecke, stockholders and directors. EDW ARD W . LYM AN Now Vice President at the U. S. National of Omaha braska, at their January meeting, an nounced two promotions. Edward Did you know that your Banker’s Blanket Bond does not protect your Cash Letter while it is in transit by mail or express? Ask about our Cash Letter Policy, which fills the gap. F IR S T N A T IO N A L https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis BANK B U IL D IN G • Auburn C H IC A G O The annual meeting of the Carson National Bank, Auburn, Nebraska, re veals that some changes have been Scarborough & Company In su ra n ce C ounselors 3, I L L I N O I S • STATE 4325 N o r t h w e s t e r n B a n ke r, F e b r u a r y , 1948 46 N eb raska N e w s made in the officership and director ship of the banking institution. Vergil Lehr was elected president, John Zacharias, executive vice presi dent and cashier; Mrs. Lois E. Becker, assistant cashier. The directors are: Vergil Lehr, R. M. Armstrong, Paul Bize, John Zacharias and John Ferneau. Bayard At the annual shareholders meeting of the First National Bank of Bayard, Nebraska, officers were elected as fol lows: J. A. Stockwell, president; M. L. Bigler, vice president; and H. L. Mc Kibbin, cashier. Directors elected are M. L. Bigler, H. L. McKibbin, W. J. Stafford, J. A. Stockwell and Viola M. Stockwell. All stock of the bank formerly held by the Ostenberg family has been purchased by J. A. Stockwell and H. L. McKibbin. Beatrice Officers of the First National Bank, Beatrice, Nebraska, last month re vealed plans for expansion of bank fa cilities. Major change will provide new and larger quarters for the street level location presently occupied by the Gish Shoe store. Blair The Washington County Bank, Blair, Nebraska, sponsored a dinner at First Methodist Church last month in recog nition of the men and women of Wash ington county who have acted as 4-H club leaders. George Hedelund, vice president of the bank, praised the leaders for the encouragement they had given the 4-H boys and girls in giving them the benefits of training for farm life. He said that the bank had noted with in terest the business careers of the 4-H members when they had established themselves on farms in the county. Cairo Announcement has been made in Cairo, Nebraska, by G. C. Raven and W. E. Sorensen of the Raven-Sorensen insurance firm that Wayne Sorensen has been accepted as a member of the firm which will continue under the same name. Mr. Sorensen is assistant cashier of the State Bank of Cairo. Mr. Raven is president of the bank and AV. E. Sorensen is cashier. Columbus Directors of the Central National Bank, Columbus, Nebraska, made three promotions in the roster of of ficers at their annual meeting. W. L. Boettcher was advanced from assistant vice president to vice presi dent. G. W. AVolf, auditor, was made an assistant cashier and will also re tain the title of auditor. Harvey Loseke, in the personal loan depart ment, was added to the list of officers as an assistant cashier. Officers who were re-elected to the positions they held last year are: J. O. Peck, president; Frank P. Dietz, vice president; Howard Burdick, cashier; Robert O. Burman, assistant cashier; Minnie Asche, assistant cashier. R. M. Campbell was re-elected chair man of the board and Howard Bur dick was re-elected secretary. Elmwood After a little over twenty-two years of service, Emily Gonzales has re signed as cashier of the American Ex change Bank of Elmwood, Nebraska, where she has served in various ca pacities since the death of Captain C. S. Aldrich in 1926. She entered the bank at that time as bookkeeper and held different positions until in 1938 on the death of the president, John P. Cobb, she was elected cashier and has held that position ever since. Kearney Tom C. Russell has been promoted from assistant cashier to cashier of the Fort Kearney National Bank, Kearney, Nebraska, and J. W.- Poynter has been elevated from assistant vice president to vice president of the same bank. Thomas Gass, president, was re elected as were all other officers and directors. Bornemann becomes the new assistant cashier. Deposits of the First National Bank are $3,902,099 and total assets are $4,097,334. Grand Island Commercial National Bank Stockholders of the Commercial Na tional Bank, Grand Island, at their an nual business meeting added two new directors to the board, and voted a 50 per cent stock dividend. The new directors are Harold A. Prince and W. A. Reutlinger. The stock dividend will increase the bank’s capital from $100,000 to $150,000. It also has a surplus of $100,000. The bank’s shareholders re-elected the following to the board: David Kaufmann, Edward Huwaldt, Vernon Rice, E. AV. Augustine, and AV. E. Clay ton. The directors later elected the fol lowing officers: David Kaufmann, president; Edward Huwaldt, executive vice president; Vernon Rice, cashier; Leslie Belford, assistant cashier. Overland National Bank The board of directors of the Over land National Bank, Grand Island, was increased from five to six, at the annual meeting of stockholders. The new director is A. J. Luebs. Other directors, all re-elected, are George J. Armstrong, M. M. Shapiro. George AV. Monson, C. J. Cords, and Herman W. A. Hehnke. Directors of the bank re-elected the following officers: George P. Arm strong, president; M. M. Shapiro, vice president and chairman of the discount committee; George AV. Monson, cash ier; AVillard AV. AVestover, assistant cashier. Hastings City National Bank Arthur H. Anderson is a new di Gordon rector of the City National Bank of Anna Sorensen retired as cashier of Hastings, Nebraska, it was announced the First National Bank of Gordon, last month following the annual meet Nebraska, last month. This closed 25 ing of the bank’s stockholders. years of efficient service with one of Officers of the bank re-elected at the the largest banks in the northwest sec meeting are: A. J. Koelling, president; tion of Nebraska. Dr. Foote, vice president; F. A. Han B. D. Berkheimer, president of the sen, cashier; and Vern Manahan, Mrs. First National, has announced that Carrie A. Stone, Carl Witt and Gerald George B. Comer has been promoted W. Walley, assistant cashiers. Mr. Koelling reported that the City to the position of vice president and cashier. Leonard Duerfeldt was ad National has increased its capital stock vanced to a vice presidency, having from $100,000 to $150,000. (Turn to page 50, please) joined the bank a year ago. Miss Edna rfeTOOTLE-LACY Promptness and efficiency have always been the watchword in our many friendly dealings with our correspondents . . . but in addition to these important factors we have long tried to add a sincerity of purpose and personal interest which increases the mutual value of our pleasant association. N o r t h w e s t e r n B a n ke r, F e b r u a r y , 1948 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N eb raska N ew s 47 Mrs. F. J. Turinsky, Omaha, and Mrs. E. F. Nagle, Los Angeles, California; brothers, Irving, a prominent Omaha insurance man, and Alfred, Dallas, Texas. ILLARD 1) E E R E HOSFORD, JR., was elected to the board of W directors of the Omaha National Bank. He is a 1935 graduate of Yale Univer sity and served as a Navy lieutenant in World War II. Mr. Hosford is assist ant general manager of the John Deere Plow Company at Omaha. Clyde O. Darner, with the Omaha National Bank 26 years, was elected a vice president and cashier. He is a leader in Nebraska Masonic activi ties. Stephen J. Wirtz, with the Omaha National 31 years, and A. J. Rhodes, with the institution 18 years, were pro moted to be assistant vice presidents. Sumner Slater and Victor D. Smith were made assistant trust officers. E. J. Seitz, cashier of the North Side Bank who has been with the institu tion 10 years, also announced his resignation to join the Midwest Carpet and Linoleum Company about Febru ary 1st. W. R. Roberts, president of the bank, announced that L. Dale Mat thews will be the new vice president, succeeding Mr. Hall. An Omahan since 1917, Mr. Matthews was with the Packers National Bank of Omaha for 19 years. He rose to be vice president and a director. For the last several years, he has been with the Kirkpatrick-Pettis Company, Omaha invest ment bankers. At the South Omaha Savings Bank, E. Bosanek, South Omaha grocer for 25 years, was named a new director. Clarence F. Witt, president, was re-elected as were all other officers and directors. Frank Robert H. Hall was to resign Febru ary 1st as vice president and a director of the North Side Bank of Omaha to devote all his time to his insurance business, he announced recently. The Omaha civic leader had been with the bank 18 years. He is past president and now a member of the board of trustees of the Children’s Memorial Hospital at Omaha, sched uled to open its doors in February after a long and successful fund-rais ing campaign. Mr. Hall also is president of the Omaha Cardinals Baseball Club of the Western League. The new offices he is opening for the R. H. Hall Insur ance Agency in the W.O.W. Building will adjoin new offices of the baseball club. TOOTLE P R E S ID E N T GRAHAM G. L A C Y CH. OF T H E B O AR D Depoits Omaha National ...$142,340,186.01 First N a t i o n a l...... 87,442,284.00 Livestock National. 69,523,852.36 United States Nat’l. 69,275,258.42 Stock Yards Nat’ l . . 28,861,393.16 Packers National . . 9,908,734.09 Douglas County Bk. 8,064,419.00 North Side B ank .. 5,818,552.59 South Omaha Sav. Bank ....................... 2,174,533.84 Stanley R. Zerzan, 56, manager of the currency department of the Fed eral Reserve Bank, died last month in a hospital following a heart attack. Survivors: Wife, Alma; sons, Jack and Gerald, both of Omaha; sisters, The engagement of Miss Gloria Lynn Cassidy, daughter of Dr. and Mrs. W. A. Cassidy of Omaha, to Wil liam A. Sawtell, Jr., son of Mr. and https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis F R E D T. B U R R I R. E. W A L E S CASH IER V IC E P R E S ID E N T E. H. S C H O P P E. L. G R U M E ASST . Omaha bank deposits tapered off, while loans increased, in the last quar ter of 1947. This was revealed in bank state ments in response to a call of the Comptroller of Currency for figures as of December 31st. Omaha’s nine banks reported de posits of $421,409,213. This was $2,971,433 less than on October 6th, the date of the last bank call. Loans were $93,262,902, which was $2,849,788 more than the October 6th figure. Bankers said that Christmas buying, new car purchases and real estate ac tivity are reflected both in deposits and loans. The United States Treas ury recently has been making repeated withdrawals on its war loan accounts in the banks, also tending to bring de posits down. The figures on December 31st, by individual banks: Two new assistant cashiers were named by the Douglas County Bank, K. G. Harvey, president, announced. They are Howard W. Nielsen, with the bank since 1941, and Charles AY. AATatts, who joined the institution in 1947. Both are World War II veterans, each having served 40 months in the army. NATIONAL BANK M IL T O N Edward A\T. Lyman, recently elected as a vice president of the United States National Bank of Omaha, has been re elected treasurer of the Omaha Com munity Chest. Mrs. Daniel W. Campbell was elected third vice president of the Chest, to succeed Mrs. C. W. Mead, retiring board member. CASH IER Totals $421,409,213.47 Loans $29,143,569.84 19,710,781.00 20,646,592.03 13,698,091.90 4,325,667.07 1,716,508.72 1,545,890.00 930,653.65 1,545,148.43 $93,262,902.64 Mrs. W. A. Sawtell, has been an nounced. The bridegroom-to-be is the ST. JOSEPH, MO. Member Federal Deposit Insurance Corporation AS S T . C ASH IER N o r t h w e s t e r n Ba n ker, F e b r u a r y , 1948 48 Nebraska News son of the president of the Stock Yards National Bank. The bride-to-be was a Princess in last year’s Ak-Sar-Ben Coronation Ball. She is a graduate of Brownell Hall at Omaha and of Stan ford University. She is a member of the Omaha Junior League. Thomas R. Noonan, assistant cash ier of the Omaha National Bank, has a secret weapon against would-be forgers. Unfortunately, however, according to the FBI, Mr. Noonan did not bring it into use soon enough. James Del bert, 33, an ex-convict of Peru, Indiana, was held recently at Fallon, Nevada, for allegedly forging Mr. Noonan’s name to bogus cashier’s checks. The forger had bought a cashier’s check at the bank in Omaha. Mr. Noonan signed it as he does hundreds of times daily. Then the forger copied the Noonan signature on other checks. Now, Mr. Noonan is sad because he didn’t use his “secret weapon.” It is a Chinese “chop.” The “chop” is his name in Chinese characters with the English translation printed beside it. It is a rectangular piece of ivory about 114 inches long. The signature is carved at one end. The user presses the “chop” on an ink-pad and then imprints it on his check. Each customer of a Chinese bank has his individual “chop.” Bank tell ers have learned to recognize them at a glance. Mr. Noonan’s “chop,” inclosed in an onyx-like case, was a gift from Dr. Solomon Ho-Asjoe of Hong-Kong. Mr. Noonan befriended the doctor’s sons, Bill and Ted, who now are Creighton University students at Omaha. A plan to split stock of the Securities Acceptance Corporation of Omaha has won stockholder approval, President Clarence Li. Landen said. There will be $1,000,000 of $2 par value common N o r t h w e s t e r n B a n ke r, F e b r u a r y , 1948 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis stock in place of $300,000 of $4 parvalue stock. Directors voted a 10-cent dividend on the new $2 par-value stock, payable April 1. All officers and directors of the Omaha firm were re elected. Members of the South Omaha Merchants Association re-elected Clar ence F. Witt their president for 1948 at the annual meeting held last month. Mr. AVitt is president of the South Omaha Savings Bank. Other officers chosen for the year included John Flynn, Jr., first vice president; Walter Korisko, second vice president; I. L. Thrane, third vice president; William Fitzgerald, fourth vice president; T. .1. Spencer, treasur er, and Louis Leigh, secretary. Charles F. Bongardt, attorney and Ray R. Ridge, senior vice president of the Omaha National Bank, were the principal speakers. During 1947, $5,696,774,800 in checks were handled by Omaha banks. These bank debits were 25 per cent higher than in 1946. Bank clearings for the year were estimated at $5,838,487,656, a gain of 22 per cent over the previous year. Omaha bank deposits were lower at year’s end, as the high cost of living was tapping rainy-day funds. Ne braskans bought $144,000,000 of Gov ernment savings bonds last year, $40,000,000 more than in 1946. W. Dean Vogel, vice president of the Live Stock National Bank of Omaha, has been re-elected a member of the Omaha Community Chest Board of Governors. S. R. Kirkpatrick, Omaha investment banker, has retired as a member of the board. David Davis, Jr., son of the vice president of the Omaha National Bank, was paired in one of the semi-finals of the annual Omaha Squash Club tournament at the Omaha Club. He reached the finals by defeating How ard Kennedy. W. R. Millard, Jr., senior vice presi dent of the Omaha National Bank, has been re-elected for a three-year term as a director of the Douglas County Chapter of the Red Cross at Omaha. W. Leroy Wilcox was renamed chair man of the Chapter. Charles Mead is secretary, James P. Lee, treasurer. Mr. Lee is a former Omaha banker, now an official of the Omaha and Council Bluffs Street Railway Company. About 40 12-minute “ 1-cent” parking meters have been installed in Omaha in front of banks and utilities offices, for the convenience of persons who want to make only brief auto stops. Richard H. Mallory, vice president of the United States National Bank of Omaha, who became the thirtieth president of the Omaha Downtown Kiwanis Club, was presented with a president’s lapel-pin by Raymond Grossman, installation officer and past president of Kiwanis International. Mr. Crossman is an Omaha attorney. John F. Davis, a vice president of the First National Bank of Omaha, has been named a member of the Knights of Ak-Sar-Ben Council to suc ceed John L. Barton, attorney. Mr. Davis was seated on the council with two other new members, W. D. Hosford, Jr., and John J. Gillin, Jr. Denman Kountze, Jr., 18, son of the former Omaha banker, suffered in juries in a traffic accident in Omaha recently. He was walking near Fiftyfourth and Dodge Streets when he was struck by the front fender of a car driven by F. A. Forgette, 65, of Mead, Nebraska. A group headed by Dillon Read & offered 710,500 shares of Company Nebraska News Northern Natural Gas Company com mon stock at $27 a share recently. Proceeds will go toward retirement of the Company’s $6 preferred stock. Northern Natural Gas has headquar ters in Omaha. partment and George V. Yates to the position of assistant secretary. Eugene W . Pester was advanced from assist ant trust officer to trust officer. All other officers and directors were re-elected. Lawrence Brinker, Omaha invest ment banker, was one of the judges in The Omaha World-Herald’s holiday contest to select the best 10 books of fiction written before 1930. The judges had to wade through 3,500 entries. Prof. Harry F. Fore of the University of Omaha English Department was awarded first prize. At the annual meeting of the Union Bank of College View, the financial report disclosed that the bank during 1947 had increased its capital stock from $75,000 to $100,000. All officers were re-elected, with C. C. Cortney continuing as president, and Katherine Dougan advanced to the vice presidency. A man obviously under the influence of too much Christmas cheer, went up to a bank teller’s window in Omaha and wanted to cash a $600 bond. He visited several windows before he found a sympathetic ear. Asked for identification, he took out the upperplate of his false teeth. His name and Army serial number were inscribed on it. The bank employe suggested that the man come back later. He was back the next day, but John Barley corn didn’t accompany him this time. The bond was cashed and he opened a bank account. At the First National Bank, Burn ham Yates, vice president, was elected to the board of directors. Phil R. Easterday was re-elected chairman of the board and George W. Holmes was re-elected president. All other officers and directors also were re-elected. Byron Dunn, president of the Na tional Bank of Commerce, announces that Marshall Hewitt and William Strateman have been advanced from assistant vice presidents to vice presi dents, and Robert Wekesser has been elected auditor. Percy Mays, vice president and cash ier of the Citizens State Bank was 49 named to the board of directors of that bank at the annual meeting. With people of Lincoln and the sur rounding territory depending to a greater extent on credit privileges, there was a very apparent increase in business during 1947. To some extent Christmas buying, larger payrolls, in flated currency, and minor factors also were contributory influences. The increases were noted both in advances in bank clearings, and in the loan records for the year as shown in reports to the comptroller of the cur rency, as of December 31, 1947. Clear ances for the years, according to the banks were $59,000,000 over those for 1946, when the total was $271,872,725. Clearings for December, 1947, were $30,320,307. For the same month in 1946, the aggregate was $26,797,120. In their reports to the comptroller for the 1947 year-end, the three down town national banks listed total loans of $19,524,815, approximately $5,565,000 greater than on the same date in 1946. Loans of the three suburban banks increased proportionately. An opinion out of the state’s attor ney general’s office, prepared for the benefit of the state banking depart ment, advises that the department is without authority to collect a fee for Fiftieth Anniversary March 4 marks our fiftieth year o f services to the live stock and packing businesses at the St. Joseph yards. Our close contact with these in terests enables us to give the very best correspond ent service on live stock shipments to the St. Joseph market. W e welcome the opportunity o f serving you. TOCKHOLDERS of the First Trust Company elected Samuel C. Waugh president at their annual meeting last month. He succeeds George AY. Holmes who had held the position since 1927. Mr. Holmes was elected to the post of chairman of the board; Mr. Waugh was former executive vice president. The stockholders chose Neil W. Hall as manager of the mortgage loan deq Y O U R STATE B A N K ER S A S S O C IA T IO N O F F IC IA L S A F E , V A U L T A N D T IM ELO C K EXPERTS First St. •Joseph STOCK YARDS BANK South St. Joseph, Mo. OFFICERS J. A. Greenfield, President Thos. J. McCullough, Vice President M . E. Blanchard, Cashier Louis J. Komer, Assistant Cashier H. H. Broadhead, Jr., Assistant Cashier “ ONLY BANK IN THE YARDS ” F. E. DAVENPORT & CO. OM AHA https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o r t h w e s t e r n B a n ke r, F e b r u a r y , 1948 50 N eb raska N ew s issuing licenses to executive officers of co-operative credit associations. At the same time the banking department was advised that a fee may be charged banks. NEBRASKA NEWS (Continued from page 46) Total deposits at the City National for 1947 amounted to $8,470,195 com pared to $8,206,038 in 1946. Former Lincoln acquaintances of Lloyd Brace, Boston, Massachusetts, have learned with considerable satis faction that he has been elected presi dent of the First National Bank of Boston, one of the nation’s largest banks. Mr. Brace was well known in Lin coln during the early ’80s and later years. The Lincoln Telegraph and Tele phone Company has asked the Ne braska railway commission for permis sion to issue $1,000,000 in 2% per cent bonds, none of which will be offered to the public. Company officials have an nounced that a considerable portion of the money will be used to retire present outstanding bank obligations. Speaking at a state meeting of the Nebraska County Assessors Associa tion, Governor Val Peterson compli mented Nebraska state banks on hav ing had much to do with the Cornhusker state being in a “relatively good position to ride out a depression.” At the same time he pointed out that the state banks at the close of the year were in an exceptionally strong posi tion. He did this by citing 1947 state bank deposits as $417,000,000 in excess of those of 1929, and' $778,000,000 greater than the total for 1941. The governor made it clear that he was NOT anticipating or forecasting a de pression.—The End. Hastings National Bank assets, including all phases of its busi ness, was announced last month by George M. Lathrop, who has managed and owned a majority of the company stock for some time. Abstracting, insurance, legal, real estate and other matters will be con ducted from now as they have in the past by Mr. Lathrop. C. L. Van Horne, formerly of the York State Bank, is the new assistant North Platte vice president of the Hastings National Bank. First National Bank This was announced during the an nual meeting of directors and officers. Ray C. Langford, who became asso All other officers re-elected for the ciated with the First National Bank coming year are: Howard G. Pratt, as vice president in January, 1912, president; O. A. Riley, vice president; retired as executive vice president of Charles E. Deets, cashier; and J. Leo the bank at the annual meeting. Swigle, Joseph Bauer and L. J. McWhen Mr. Langford became associ Cune, assistant cashiers. Directors are ated with the bank, the deposits were C. E. Byers, Dr. O. A. Kostal, Mr. Pratt, $480,000. He has taken an active part Mr. Riley, R. R. Vance and Stephen in the development of the bank, which Swigle. today has deposits of more than $9,The bank declared a dividend of 368,000. $75,000 which will bring the capital At the meeting of the board of di stock in the bank up to $200,000, equal rectors, the following officers were ing the surplus account. elected: Keith Neville, president; Ray Total deposits at the Hastings Na C. Langford, chairman of the board; tional for 1947 amounted to $12,154,694 W. H. Munger, executive vice presi compared to the 1946 total of $12,223,- dent; L. W. Langford, vice president 986. and cashier; Robert Crawford, A. R. Sudman and Anna M. Hayes, assistant cashiers. Hooper The First National Bank of Hooper, McDonald State Bank Nebraska, passed another milestone J. Y. Castle, executive vice presi last month, marking up 62 years of dent, was elected president of The service to the community. In 1900 the bank, then known as The McDonald State Bank of North Platte State Bank of Hooper, exchanged its at the annual meeting of the board of state charter for a national charter un directors. Mr. Castle succeeds L. B. der the present name of The First Dick who has been president since National Bank of Hooper. A. M. Till 1943 and who recently announced his man, who with others purchased stock retirement. W. H. McDonald continues to serve in the bank in 1903, has been its presi dent throughout most of the years as chairman of the board, with Geo. H. since that time, with the exception of Larkin as vice president and G. W. about four years while he resided in Taylor as cashier. On January 1, 1948, the McDonald Omaha. State Bank celebrated its 70th anni versary. Mr. Castle pointed out that Nebraska City deposits have advanced from $228,Dissolution of First Trust Company 000 in 1902 to $5,318,000 today. of Nebraska City and acquisition of its Thedford "H IDDEN ” CO LLA TERA L th a t F ie ld W a re h o u sin g b rin g s to L IG H T . . . is available inventory of raw ma terial or finished goods, on which the William H. Banks Organization issues its field warehouse receipts. These receipts may be used as collateral for a satisfactory loan, while inventory remains stored on the premises of the borrower, to be released as needed. The entire procedure is fast, simple and economical. Investigate today. W illia m H . B a n k s W a r e h o u s e s , Inc. G e n e r a l Offices: 209 S. LA SALLE STREET CHICAGO, ILLINOIS Telephones: State 0204-0205 D iv is io n O ffic e s : DES MOINES, IOWA ★ W ESLACO . TEXAS ★ OGDEN, UTAH ★ FAYETTEVILLE, ARK. N o r t h w e s t e r n B a n k e r, F e b r u a r y , 1948 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ★ ANGOLA, INDIANA ST. LOUIS, MO. Leroy Abbott, of Alliance and Chris Abbott of Hyannis have purchased controlling interest in the Citizens State Bank of Thedford, Nebraska, it was announced last month. T. P. Hamilton, president of the bank since 1930, owned most of the stock. Kenesaw Bank Burns Fire last month virtually destroyed a brick building in downtown Kene saw, Nebraska, housing the Adams County Bank, a general store and hardware owned by Major John Widener. The bank occupies the corner of the L-shaped building. An explosion was reported to have occurred inside the bank, blowing out windows and dam aging the roof. Eight Banks Join A.B.A. The following Nebraska banks have become members of the American Bankers Association: Citizens State Bank of Carleton, State Bank of Colon, Farmers State Bank of Davey, Bank of Palmyra, Bank of Peru, State Bank of Stella, Bank of Talmage, and Ne braska State Bank of Weeping Water. N eb raska N ew s t Bro m o tio n s F ir st N a tion a l O m aha 51 Creighton, Herman Kountze, John A. Creighton, C. T. Kountze, F. H. Davis, and the present Board Chairman, T. L. Davis. Other promotions resulting from the annual meeting included appointment of E. N. Solomon and John R. Lauritzen as assistant vice presidents. Reuben L. Swanson, Lawrence E. Erickson, Charles K. Vorhees, and Carl N. Bloom were named assistant cash iers. The stockholders and directors voted to increase the capital of the bank from $1,500,000 to $2,000,000. They also voted to increase the surplus from $1,500,000 to $2,000,000. Total resources of the bank are more than $92,000,000. City National, Chicago T. L. D A V IS Elected Chairman of Board nRED W. THOMAS was named the I seventh president of the First Na tional Bank of Omaha at the annual directors’ meeting. T. L. Davis, president for many years, was named chairman of the board, and will continue active in that capacity. A native of Sargent, Nebraska, in the Sand Hills, Mr. Thomas is the son of a pioneer banker. He attended Cen tral High School in Omaha and re ceived his Bachelor of Arts Degree from the University of Nebrask. He later took special work at Weimar, Germany. After an apprenticeship in the old Union National Bank of Omaha, he became cashier of the Live Stock Na tional Bank. In 1917, he joined the First National as cashier. Mr. Thomas later was elected vice president. He is chairman of the State Advis ory Board of the Reconstruction Fi nance Corporation. Mr. Thomas is engaged in many educational and charitable activities. He has served as regent of the Uni versity of Nebraska, and now is a trustee of the University of Nebraska Foundation. He is trustee of Doane College, Crete, and vice president of Brownell Hall. BANKS Bought and Sold Confidentially and with becoming dignity BANK EMPLOYEES PLACED 43 Years Satisfactory Service CHARLES E. WALTERS CO. OMAHA, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis At the annual meeting of the stock holders of the City National Bank and Trust Company of Chicago, William L. Ready, president of the United States Gypsum Company, was elected to the board. FRED W . T H O M A S Named to the Presidency Mr. Thomas is also president of the Omaha Library Board, a vestryman of Trinity Cathedral, trustee of the Ne braska Children’s Home Society, and a trustee of Clarkson Episcopal Hos pital. He is married and lives at 6414 Underwood Avenue in Omaha. Mr. Thomas’ is the fourth family name to be associated with the presi dency of the First National in its nearly one hundred years. The bank was founded in Civil War days and received what is now the oldest char ter from Omaha West. Its presidents have been Edward At a meeting of the directors which followed the stockholders’ meeting, Ben Franklin Meyer was elected as sistant vice president; John Barbee, assistant trust officer, and Arthur Herold, assistant cashier. All other officers were re-elected. increase Capital The Security State Bank of Hol brook, Nebraska, is changing its arti cles of incorporation to permit a larger capital. Due to the increased volume of business it was decided by the board of directors to increase the figure from $20,000 to $25,000. 9 * t J lin c o ln — M iy X O R E Q a * iii* ie * ttc U — people every day are making use of Continental services. Long known as "Nebraska's friendly Continental bank," the pledges prompt, friendly and efficient service. * k a CONTINENTAL RATIONAL 0 / K f LINCOLN Member Federal Deposit Insurance Corporation NEBRASKA N o r t h w e s t e r n B a n ke r, F e b r u a r y , 1948 52 Pa u l H a n s e n , V i c e - P r e s i d e n t of L i v e S to c k N a t i o n a l B a n k , w h o sp eci aliz es in i n v e s t m e n t p r o g r a m m i n g fo r c o r r e s p o n d e n t b a nk s , is s h o w n ab ov e ( l e f t ) w i t h Russell L o r i n g , a s s is ta n t to M r . H a n s e n . Investment Planning Fitte d to Your Needs . . . Years of experience that assure knowl edge of your needs are behind the in vestment portfolio service available to you at Live Stock National B ank. W e now serve more than 400 banks in the Great Plains and Rocky M ountain area with the unbiased, personal help you want in building a sound investment program for your bank. T h is service includes portfolio analysis and program building based on co operative studies with you to fit y o u r n e e d s . Y o u also get prompt executions on your orders to buy or sell securities and the added convenience of safe keeping facilities. T here’s a ’’plus” quality in this better investment planning service for you. That extra is the accumulated years of experience of our team of officerspecialists. A ll of our officers came up through the ranks, or had years of ex perience in correspondent banks. One of these is Paul Hansen, vice-president, who specializes in investment program ming for correspondent banks. Take advantage of this ’’plus” correspond ent service at The B an k of Friendly 24-Hour Service and write or see Paul soon. H e ’s always at your service. LIVE STO C K ^B A N K O M A H A , T H E B À N KOF N E B R A S K A F R I E N D L Y 2 4 - H O V R S E R V I C E Member of Federal Reserve and Federal Deposit Insurance Corporation N o r t h w e s t e r n B a n ke r, F e b r u a r y , 1948 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 53 Promotions at Davenport V. O. Figge, president of the Daven port Bank and Trust Company, Dav enport, Iowa, has announced that J. M. Hutchinson has been made execum Urnup M e e tin g s This 3Sonth ROUPS One and Eleven of the Iowa Bankers Association will G follow their usual custom and again this year hold their meetings in Sioux City on February 12th, and in Burling ton on February 23rd, respectively. With February 22nd this year falling on a Sunday, the usual preconvention party will take place the evening of the 22nd, and the main meeting on Mon day, February 23rd. Programs for the meetings are as ' follows: Group One, Sioux City February 12th 11:00 A. M.—Group Conference of County Association Officers 12:00 Noon—Luncheon Martin Hotel Ballroom Presiding: A. E. Muir, President, Onawa State Bank; Chairman, Group One. Invocation: Rev. George W. Dunn, Pastor, First Methodist Church, Sioux City. HHHmn ■ m i The Toy National Bank, Sioux City; State Chairman, United States Sav ings Bonds sales. Remarks: About “the School of Bank ing at the University of Wisconsin,” Charles H. Walcott, Assistant Cash ier, Security National Bank, Sioux City. Remarks: Walter T. Robinson, Loan Guarantee Officer, Veterans Admin istration, Des Moines. (A room will be available for instruction by a G. 1. loan officer.) Adjournment. 5:00 to 6:00 P. M. Social Hour Cavalier Room, Basement, Martin Hotel 6:30 P. M.—Banquet, Ballroom Martin Hotel Music and Entertainment Presiding: C. L. Fredricksen, Presi dent, Live Stock National Bank; President, Sioux C i t y Clearing House Association. Address: “Personal Relationships,” Dr. C. H. Bliss, D.D.S., Sioux City. J. M. H U T C H IN S O N Now Executive Vice President tive vice president. He formerly held the title of vice president and trust officer. Group Eleven, Burlington AFTERNOON 1:15 P. M.—Martin Hotel Ballroom Meeting Called to Order: A. E. Muir, President, Onawa State Bank; Chair man, Group One. Address of Welcome: C. L. Fredricksen, President, Live Stock National Bank; President, Sioux City Clearing House Association. Response: John J. Porter, Executive Vice President, Lyon County State Bank, Rock Rapids. Appointment of Resolutions Commit tee. Remarks: Newton P. Black, Superin tendent of Banks, Des Moines. Address: “Dangers of Inflation,” R. F. Patterson, Dean of the School of Business Administration, University of South Dakota, Vermillion, South Dakota. Report of Resolutions Committee. Remarks: Frank Warner, Secretary, Iowa Bankers Association. Address: “Abraham Lincoln,” John Hamer, Manager, M a s o n C i t y Branch. Standard Oil Company. Remarks: R. R. Brubaeher, President, There will be a social hour starting at 6:30 p. m. on the mezzanine floor of the Hotel Burlington on February 22nd, followed by a buffet dinner. On February 23rd registration will start at 10:00 o’clock a. m. on the mezzanine floor of the Hotel Burlington and din ner at 12:15 p. m., preceded by the in vocation. Following the dinner will be the regular Group Eleven meeting as follows: Call to Order by Dale Kelley, chair man, Group Eleven. Minutes by Frank Crone, secretary, Group Eleven. Greetings by W. W. Blaiser, president, Iowa Bankers Association. Remarks by N. P. Black, superintend ent of banking, state of Iowa. Words of Wisdom by Frank Warner, secretary, Iowa Bankers Association. “What’s Ahead for Business” “ Inflation Boom or Bust” by Arthur R. Upgren, Professor of Economics, University of Minnesota; associate editor of the Minneapolis Star Jour nal. Adjournment. Did you know that this company pioneered in putting Bank Insurance on a scientific basis and forcing rate reductions? Ask us about our counseling service. E. H. K E T E L S E N Newly Elected Cashier Mr. Hutchinson has been in the banking business all his life, starting in his home town of Decorah, Iowa in Scarborough & Company Insurance Counselors F IR S T N A T IO N A L https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis BANK B U IL D IN G • C H IC A G O 3, IL L IN O IS V# STATE to Banks 4325 N o r t h w e s t e r n B a n ke r, F e b r u a r y , 1948 54 Io w a N ew s 1914, and moving successively to Cedar Rapids and Davenport where for the last fifteen years he has been an officer and director of the Davenport Bank and Trust Company. He is at the present time serving as a member of the Executive Council of the Amer ican Bankers Association. He has also served as a member of the Executive Committee of the Trust Division of the American Bankers Association. Ernest H. Ketelsen has been made cashier of the Davenport Bank and Trust Company. He formerly held the title of assistant vice president and comptroller. Mr. Ketelsen came to Davenport in 1924 from Walcott, Iowa. He became associated with the Davenport Bank and Trust Company at the time of its organization in July 1932, and served as assistant vice president and comp troller. He is a past-president of the Iowa Association of Bank Auditors and comptrollers. The bank now has a Capital of $600,000; Surplus $3,000,000; Reserves and Profits $1,904,408, and Deposits of $74,734,211. Mortgage Bankers Elect Milton S. Olson, vice president and treasurer of the General Mortgage Cor poration, Des Moines, was elected president of the Iowa Mortgage Bank ers Association annual meeting in Sioux City last month. He succeeds M. C. Eidsmoe, president of the Wood bury County Savings Bank, Sioux City. Laird M. Fryer, assistant vice presi dent of the Iowa-Des Moines National Bank, Des Moines, was elected vice president, and Robert W. Turner, president of the City National Bank, Council Bluffs, was named secretary. The six regional vice presidents elected were: N o r t h w e s t—Joe T. Grant, vice president, First National Bank, Sioux City; Southwest—Walter Hall, secretary of E. H. Lougee Com pany, Council Bluffs; North-central— Max Guernsey, Wynkoop Mortgage Company, Waterloo; South-central— Hazelton H. Williams, vice president Mahaska S t a t e Bank, Oskaloosa; Northeast—N. J. Greteman, vice presi dent American Trust and Savings Bank, Dubuque, and Southwest—Wil liam E. Hay, Iowa Securities Com pany, Davenport. Members of the board of governors are Mr. Eidsmoe, Douglas Swale, vice president First National Bank, Mason City; Earl Linn, president Weitz In vestment Company; Orville M. Garrett, vice president Iowa-Des Moines Na tional Bank and Robert L. Beal, vice president Iowa Securities Company, all of Des Moines. Pocahontas Officers Named Bankers of the Pocahontas County Bankers Association met last month and elected officers for the coming year. The following will serve the As sociation: President—Guy G. Butler, president Rolfe State Bank, Rolfe; Vice Presi dent—A. M. Kuhl, cashier First Na tional Bank, Fonda, and SecretaryTreasurer—Alfred Miller, cashier Po cahontas. Taylor Guy Taylor Guy, 94, vice president of the Commercial Savings Bank in Carroll, Iowa, since 1917, died of a heart attack at his home last month. Mr. Guy, a retired farmer, was an extensive property owner, his hold ings including farm lands and busi ness buildings in Carroll and Jefferson. Coming to Carroll county in 1871, he had lived in Carroll since 1900. In the fall of 1895, Mr. Guy retired and moved to Atlantic. Five years later he came to Carroll where he lived until his death. Andrew Eber V. Flint was elected to succeed the late J. L. Ripple as director of the Andrew Savings Bank at the annual stockholders’ meeting in Andrew, Iowa. All other officers and directors were re-elected. Boone Stockholders of the Boone State Bank and Trust Company, Boone, Iowa, held their regular annual meet ing last month and two new directors were added to the previous board of six members. The new members are A. V. Doran and Morris F. Miller. The entire staff was re-elected, with one addition and three advancements being made. Morris F. Miller, formerly cashier, was also named as a vice president. C. M. Canady, formerly assistant cashier, has been appointed as man ager, personal loan department, and H. C. Overbeck, formerly assistant cashier, was promoted to cashier. Raymond Sherman has been added to the staff as assistant cashier. Buffalo Rudolph Schroeder, president and cashier of the Buffalo Savings Bank, Buffalo, Iowa, has retired after serv ing 32 years and was replaced by C. C. Wrage who was elected president and cashier at the annual meeting. Other bank officers elected were Theodore Radetzki, assistant cashier, and Rupert Kautz, vice president. Frank DeHaven was the only new member elected to the board of di rectors. Burlington George C. Swiler, president of the Burlington Savings Bank in Burling ton, Iowa for 22 years, resigned that post last month and is succeeded by his son, Wesley H. Swiler, 43. The resignation was accepted by the board of directors at the annual meet ing and the elder Swiler was named chairman of the board. Charles L. Bosier was elected ex ecutive vice president. He has been vice president since 1934. Martin Grannaman, assistant cashier since 1925, was named cashier. Melvin C. Gustafson and Wesley Swiler were elected to the board, and all other officers and directors were re-elected. Cedar Rapids Merchants National Bank S io n e e b b i n C e n t r a l S P / ie c ia / S P e b v ice S B a n ^ in ^ N a t i o n a l B a n k IN C H IC A G O RO OSEVELT ROAD AT HALSTED STREET Member Federal Deposit Insurance Corporation N o r t h w e s t e r n B a n k e r, F e b r u a r y , 1948 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • Member Federal Reserve System John T. Hamilton, II, president of the Merchants National I3ank of Cedar Rapids has announced some changes in the bank’s official family. At the annual stockholders meeting, Ray J. Mills, who is president of the Iowa Mutual Liability Insurance Com pany, and E. J. Lattner, president of the Century Engineering Company, were made directors of the bank. At the annual directors meeting, the fol lowing promotions were made: R. W. Manatt and Leonard W. Broulik were advanced to vice presidents: Mark J. T 'his M oney travels fast M ore than three-quarters of ask their com m ission men a century’s experience has to route their money through taught us to appreciate the this B ank, the advice of credit value of speed in the trans goes to you on the day of m issio n of proceeds receipt. from The Stock Y a rd s the sale of live stock in C h i p o st o ffice is ju st a c ro ss cago. W hen your custom ers the street and no time is lost. We will he pleased to send you in struction cards to give your shippers. fTïie L IV E S T O C K B A N K 'A t c i/ t o n a / U N IO N S T O C K YARDS ESTABLISHED https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1868 M em ber Federal Deposit Insurance Corporation N o r t h w e s t e r n B a n ke r, F e b r u a r y , 1948 56 Iowa News Myers will now devote his time to his duties as vice president; and Peter Bailey was elected to cashier. James E. Coquillette has been made an assist ant cashier. James E. Hamilton continues as chairman of the executive committee and S. E. Coquilette as chairman of the board. Peoples Savings Bank Personnel shifts at the Peoples Sav ings Bank in Cedar Rapids were an nounced after annual meeting of stock holders and directors. In addition, Peoples stockholders voted to change the institution’s name to “ Peoples Bank and Trust Com pany.” Ervin F. Stepanek, cashier, was ele vated to a vice presidency, and Carl Volesky, with the bank for 12 years, was named an assistant cashier. Mr. Stepanek will continue as cashier, a post he has held since 1933. Cherokee At the annual meeting of the Cen tral Trust and Savings Bank, Chero kee, Iowa, an excellent business year for the banking firm was reported. Officers for 1948 were elected as fol lows: Chairman of the board, A. W. Jones; president, John Keeline; vice president, James Dunn; cashier, Al bert Eggert; assistant cashier, George Pingrey. Charles City The board of five directors was re elected for the coming year and three new directors added at the annual Wel come to Dur Group Meet i ng in Bu r l i n g t o n Burlington banks extend a hearty invitation to all members of Group Eleven and other bankers to attend our annual Group meeting. Monday, February 23 W e have arranged a fine program and we have also prepared some excellent entertain ment for your pleasure on Sunday evening, February 22. Be sure and attend our Group meeting and enjoy our well-known Burlington hospitality. REMEMBER TO BE WITH US AT OUR SUNDAY EVENING PRECONVENTION PARTY! meeting of stockholders of the Com mercial Trust and Savings Bank in Charles City, Iowa, last month. New members of the board are W. Loren Parr, cashier, William E. Frudden, secretary of the Geo. P. Smith Co., and Clyde M. Frudden, secretary-treas urer of N. Frudden and Son, Inc. All officers were re-elected. Clarence At the annual meeting of the stock holders of the Clarence Savings Bank, Clarence, Iowa, Harry Decker was chosen as a member of the board of directors for the position held by the late Hans Klatt. This makes the pres ent board composed of Earl Elijah, Joe Ditz, E. C. Hasselbusch, Henry Von Muenster and Harry Decker. Clinton Directors of the Clinton National Bank, Clinton, Iowa, elected L. J. Derflinger as new president while L. J. Schuster, retiring president, w a s named chairman of the board. Previous to action by the board, Mr. Derflinger had been serving in the capacities of executive vice president and cashier. W. J. Wegener has been assistant cashier for a number of years and now assumes his new duties as cashier. Council Bluffs Philip A. Waite was named cashier of the Council Bluffs Savings Bank at a meeting of the bank directors last month. Mr. Waite has been serving as as sistant cashier. He takes over the job as cashier from E. H. Spetman. Sr., who formerly held positions of vice president and cashier. Mr. Spetman’s title will now be that of vice president. W. M. Grote and James B. Gronstal, formerly assistant cashiers, w e r e named assistant vice presidents. Their positions as assistant cashiers will be filled by Robert Starr and E. H. Spet man, Jr. Denison Joseph M. Wansing, Denison. Iowa, implement dealer was elected a di rector of The First National Bank of Denison at the annual stockholders' meeting. Mr. Wansing has been a resident of Denison for many years and is very active in public affairs. He is president of the Crawford Coun ty Fair Association and is a director of the Denison Chamber of Commerce. Donnellson Burlington Savings Bank Farmers & Merchants Savings Bank National Bank of Burlington At the annual meeting of stockhold ers of the Citizens State Bank. Don nellson, Iowa, Ed J. Dahms and Carroll I. Redfern were elected to the board of directors, raising the number of board members to seven. It was announced at the annual meeting that the surplus fund had been increased from $25,000 to $50,000 making total capital structure of the bank read $118,376 with deposits of over S2.000,000. De Witt At the recent annual meeting of the stockholders of the DeWitt Bank & Trust Company, De Witt, Iowa, the di rectors were re-elected and the followN o r t h w e s t e r n B a n ke r, F e b r u a r y , 1948 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 57 OFFERING HELPFUL CORRESPONDENT SERV ICE IN DES MOINES VALLEY BANK AND T R U ST COM PANY D ES M O I N E S 7Sth MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ANNIVERSARY YEAR N o r t h w e s t e r n B a n ke r, F e b r u a r y , 1948 58 Iowa News ing promotions were made in the per sonnel: J. Yvo Floerchinger from cashier to executive vice president; Thos. J. Neessen from assistant cashier to cash ier, and Ivan E. Barber, teller, to as sistant cashier. Eldora, Iowa, five of seven directors were re-elected. Hans P. Hansen and Morten Nelsen were elected to succeed Folmer Faaborg and Thomas Christensen. Eldora The Security Savings Bank, Farnhamville, Iowa, has a new slate of of ficers. Ben Hanson is chairman of the The changes in the officers of the board of directors which includes First National Bank of Hampton, Oscar Peterson, Ray Ewing, Harry Iowa, were promotion of J. M. Boots Madson and O. W. Madson. to vice president from cashier, of Fred O. W. Madson was elected president. A. Keepf to cashier from assistant He was previously cashier. Robert cashier, and Robert Schaefer to assist Anderson was promoted to cashier ant cashier. from assistant cashier and Charles The list of officers and directors now Madson is now assistant cashier. is composed of: D. D. Bramwell, presi dent; J. H. Boehmler, vice president; J. M. Boots, vice president; Fred A. Keepf, cashier; Robert Schaefer, as sistant cashier. Directors, D. D. Bram well, J. H. Boehmler, W. K. Bramwell, H. E. Boehmler, Dr. H. H. Johnston, M. J. Bramwell, C. C. Bramwell. Farnhamville W. S. Norton, a Stockton, Illinois, banker, was added to the directorate of the Hardin County Savings Bank, Eldora, Iowa, at the annual meeting of the board held recently. All officers and other directors were re-elected. Elkhorn At the annual meeting of stockhold ers of the Landmarks National Bank, Greene D. H. Ellis, vice president of the First State Bank, Greene, Iowa, re ports that at the annual meeting of the stockholders of the bank V. K. Barth, cashier, was elected to the board of directors. All other directors and the officers were re-elected. Independence Farmers State Savings Bank E. F. Sorg, president of the Farmers State Savings Bank, Independence, Iowa, announces two promotions on the official staff of that bank. At the annual meeting C. L. Fiester was ad vanced from cashier to vice president, and P. E. Sorg was elected to succeed Mr. Fiester as cashier. Previously he had been assistant cashier. E* E. Everett, vice president, and Jean Hohl, assistant cashier, complete the official roster. All directors were re-elected and a 14 per cent dividend was de clared payable semi-annually Febru ary 1st and August 1st. Assets of the bank are $6,500,000, and loans are $1,500,000. \0lSE REDUCTION Security State Bank fo r Offices, Schools, Gold.Bond AC0 USTIFIBRE BU ILT TO TRAP N OISE M AD E FRO M N O ISE R ED U C TIO N SELEC T ED P L E A S IN G WOOD C O E F FIC IE N T FIBRES 65% A PPEA R A N CE HIGH LIG HT REFLEC TIO N SA N IT A R Y — C L EA N A B L E IN ST A LLED BY EXPERTS FOR NEW CONSTRUCTION OR MODERNIZIN G E F F E C T IV E SO UN D C O N T R O L AT LO W CO ST Churches, Restaurants, and Public Buildings Wherever people are occupied, the need for acoustical correction and noise reduction becomes apparent. Disturbing noise reduces efficiency, lowers morale, increases absenteeism and impairs health. All of which is reflected in higher production costs. GOLD BOND ACOUSTIFIBRE installations will remove these obstacles, completely and perma nently—at a surprisingly low cost. Write, wire or telephone for complete information. Prompt service anywhere in Iowa. TELEPHONE 3-4241 Over 20 Y e ars of S e rv ice to and All Iow a Des Moines H. B. BUCKHAM & CO. Specialists in Acoustical Engineering 410-20 SIXTEEN TH STREET N o r t h w e s t e r n B a n ke r, F e b r u a r y , 1948 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis DES M OINES, IO W A R. J. O’Brien was elected president and a director of the Security State Bank in Independence to succeed J. F. Baden who resigned at the annual meeting of stockholders and directors. Mr. Baden announced he was leav ing his post at the bank reluctantly to go to Texas where he and his family plan to live. He has disposed of his interests in the bank to other stock holders. Members of the board of directors also named Roger Wheeland as ex ecutive vice president, Art Satterlee, as vice president, John Corcoran, Jr., cashier, and Lewis Holland, assistant cashier. Indianola Three changes were made in officers at the 29th annual meeting of stock holders at the Peoples Trust and Sav ings Bank in Indianola, Iowa. Guy Risinger was made assistant vice president; L. Y. Van Syoc was made cashier; and Richard W. Haldeman was made assistant cashier. Other officers were re-elected with William Buxton III continuing as president. Keota At the annual stockholders and di rectors meetings of the Security State Bank, Keota, Iowa, officers were elected as follows: W. F. Stoutner, president; J. E. Leinen and M. F. Beery, vice presidents; Harold A. Stowell, cashier. Directors besides 59 Iowa News these are J. Forest Embree, P. P. Hahn and F. F. Hagist. Thos. B. Mills and Sally Mayer were elected assistant cashiers. The bank paid a dividend of 10 per cent on par value of stock on December 31st. Kir©s? All directors and officers of the Kiron State Bank, Kiron, Iowa, were re-elected last month. President G. A. Norelius announced a 10 per cent divi dend to stockholders. He also an nounced that a new tile floor is being laid throughout the bank. Deposits of the Kiron State Bank now exceed $1,250,000. Lake City The following officers were elected at the annual meeting of the stock holders of the Lake City State Bank, Lake City, Iowa: Walter Jacobs, presi dent; Mary E. Peebles, John H. Rathjen, vice president; R. O. Moll, cashier, and Paul W. Mack, assistant cashier. L. W. Sievert, who has been presi dent of the bank for several years, has sold his stock in the institution. Ottumwa Newell The board membership of the First National Bank of Newell, Iowa, has been increased from five to six mem bers. In addition to the regular board membership of F. C. Foley, M. A. Armstrong, Arthur Nelson, A. J. Hill and Loverne Erickson, Gilbert Hill was elected to serve as the sixth mem ber. All officers remain the same for the ensuing year. Newton The only change in officers of the Newton National Bank, Newton, Iowa, announced by O. L. Karsten, president, following last month’s meeting was the advancement of O. L. Minear to the post of assistant cashier. Farmers and Merchants Savings The new president of the Farmers and Merchants Savings Bank of Ot tumwa is Earl A. Wimmer, who was elevated from the offices of vice presi dent and cashier at the annual meet ing. Mr. Wimmer succeeds Emmet A. Work as president. Mr. Work re mains on the board and as attorney for the bank. Succeeding Mr. Wimmer as cashier is Miss Kathryn Glenn, who has been assistant cashier. Elected a vice presi dent is P. C. Warder, who has been serving on the board. Herbert Van Cleave and D. J. Weeks were pro moted from tellers to assistant cash iers. OUR GROUP MEETING Lamoni This month bankers in Iowa, Minnesota, Nebraska and South Dakota will come to Sioux City to attend our 1948 group meeting of Iowa Group No. 1. You will find the First National Bank well represented and we hope to see you here. Farris T. Turner was elected presi dent of the board of directors of the State Bank of Lamoni, Iowa, last month. He fills the vacancy left by the recent death of his father-in-law, C. V. Anderson. G. N. Briggs con tinues as vice president, Verne Des kin as cashier and Miss Clara Allen is assistant cashier. Mr. Turner is a well known farmer and stockman in Harrison county, Missouri. During your visit to Sioux City, visit us. Our officers and directors extend to you a sincere invi tation to stop in and ask us about First National correspondent service. Lansing Thomas M. Kerndt of Lansing, Iowa, has resumed his former position with the Kerndt Brothers Savings Bank, having resigned his position as special agent of the Federal Bureau of In vestigation. He was with the F.B.I. for nearly five years. A. G. SAM, President J. T. Grant, Vice President J. R. Graning, Cashier E. A. Johnson, Assistant Cashier Le Mars H. H. Strifert, Assistant Cashier K. J. Shannon, Assistant Cashier J. Ford Wheeler, Auditor MEMBER FEDERAL RESERVE SYSTEM MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION John Alesch of Le Mars, Iowa, was elected a new director of the First Na tional Bank to fill the vacancy left by the death of Ben Ernsterhoff, who died last fall. Other directors of the bank and the officers were all re-elected. Marshalltown M. C. Berkley, vice president of the Fidelity Savings Bank, Marshalltown, Iowa, for the last 20 years, has re signed, it was announced last month by Roy R. Bradbury, president. Mr. Berkley’s resignation will go into ef fect April 1st. Mr. Berkley said he will continue as a member of the bank’s board of di rectors and will retain his stock hold ings. Y O U R ST A TE B A N K ER S A S S O C IA T IO N O F F IC IA L S A F E , V A U L T A N D T IM E LO C K EXPERTS ★ ★ ★ ★ /ff O M ^ ★ ★ ★ F. E. DAVENPORT & CO. OM AHA https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o r t h w e s t e r n B a n ke r, F e b r u a r y , 1948 60 Iowa News Re-elected as chairman of the board was D. W. Johnson. One change was made in the Farmers Bank directorate, Asa G. Berry being elected to fill the place of W. H. Robertson, resigned. Fidelity Savings Bank One new member of the board of directors of the Fidelity Savings Bank, Ottumwa, and all former directors and officers of that bank were elected. The new director is Stanley A. Haw. Union Bank and Trust Co. Retirement of four veteran Ottumwa hankers was announced at the annual meeting of the Union Bank and Trust Company. The combined service record of the four totals 186 years with all that service continuous and given in the employ of the Union Bank and Trust Company or with banks from which the Union Bank combination was es tablished through the merger of 1931. The retiring bankers are: Frank von Schrader, H. L. Pollard, Fred Dimmitt and John Weidenfeller. Mr. Von Schrader, dean of Ottumwa hankers, is retiring as chairman of the bank’s board of directors with slight ly more than 60 years in the banking business—one of the longest service records in Iowa. He founded the Ot tumwa Savings Bank December 28, 1887, and was its president until the merger when he became president of the Union Bank and Trust Company. While he is 88 years old, he is still one of the first to arrive at the bank each morning, and, by resolution of the directors, he has been asked to re tain his desk at the bank. Mr. Pollard, 54 years an Ottumwa banker, has been vice president of the Union Bank and Trust Company since its organization. He grew with the bank and occu pied the position of cashier, later vice president, which position he held at the time of the merger of the Ottumwa National Bank, Iowa National Bank and the Ottumwa Savings Bank and Trust Company. Mr. Dimmitt, another veteran em ploye of the bank, began his service in March of 1899 and has completed ap proximately 49 years as an Ottumwa banker, retiring as assistant cashier. Mr. Weidenfeller, in charge of the safety deposit department of the Union Bank, has been in the banking busi ness for 23 years. erty, Iowa, announces that all officers and directors of that bank were re elected at the annual meeting of stock holders and directors last month. S iv s M o in v s N vm vs T the Iowa-Des Moines National Bank, following the annual meet ing, Herbert L. Horton, president, an nounced the election of George C. Ivoss as a director, and the promotions of A Packwood The stockholders of the Farmers Savings Bank of Packwood, Iowa, held their annual meeting at the bank last month. Officers elected for the coming year are: president, Orville Leisure; vice president, Mrs. Harry Pile; cashier, J. E. Wallace; assistant cashier, Mrs. C. W. Nelson; directors, Ira Davis, S. H. Nelson, Mrs. Harry Pile, Orville Leisure, Glen Bradfield, J. E. Wallace and Harlan Myers. Waterloo National Bank of Waterloo The 11 directors of the National Bank of Waterloo were re-elected and all officers retained in office including Charles S. McKinstry, president, who stated that the bank would make a semi-annual dividend payment of $5 per share. Waterloo Savings Bank Harry G. Northey was elected chair man of the board of directors of the Waterloo Savings Bank at a reoreranizational meeting of the board following the annual meeting of stock holders. Clarence E. Campbell was elected president of the bank, succeeding Mr. Northey, who had served in that ca pacity nearly 19 years. Other new officers at Waterloo Sav ings Bank are the following: Francis R. LaBarre and V. Spalding Miller, both elevated from assistant cashiers to assistant vice presidents; Forrest D. Lofton, Dale K. DeKoster, John R. Sanders and Willis J. Vollenweider. all named assistant cashiers, and Merle W. Rodgers, teller. Director, GEORGE C. KOSS Iowa-Des Moines National Bank Gerald O. Nelson from assistant vice president to vice president and Harry L. Westphal from assistant cashier to assistant vice president. He also an nounced the election of Janies R. West Branch LETTER AND CATALOG ARRIVE TOGETHER T e n s io n E n v e l o p e C o r p . M A N U F A C T U R I N G P L ANT DES M O I N E S 14, I O W A ' .j Grand Ave. Phone 4 - 4 1 2 6 I N o r t h w e s t e r n B a n ke r, F e b r u a r y , 1948 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The First State Bank of West Branch, Iowa, held the annual meet ing last month and all officers and directors were re-elected. Fred W. Hinkhouse, president pointed out that the bank is starting its 73rd year of service to the West Branch community and reports that the gain in business in 1947 was larger than any previous year of its history. A dividend of 12 per cent was paid and $15,000 was transferred to the surplus account pro viding a capital structure now of $25,000 in common stock, $75,000 in surplus and $41,000 of undivided profits. West Liberty R. S. Kirkpatrick, president of the West Liberty State Bank, West Lib GER ALD O. N E L SO N Promoted to Vice President Brown to assistant cashier, Arthur J. Petit to assistant trust officer and the retirement of Rufus L. Chase from the bank. Io w a N e w s Mr. Koss is president of the Koss Construction Company in Des Moines. Mr. Nelson’s advancement follows 21 years of service with the bank. He was made assistant vice president in 1946 and is head of the instalment loan department. Mr. Westphal, bond department of ficer, has been with the hank since bank will in no way be affected by the change in name and that the trust de partment will continue under the di rection of Clyde H. Doolittle, vice president. All other directors and officers were re-elected. George A. Moeckly, assistant vice president of the Bankers Trust Com pany and manager of the personal loan department, was promoted to vice president of the bank at the annual meeting according to J. W. Hubbell, president. Mr. Moeckly has been with the bank 20 years. He also is president of the Des Moines Retail Credit Association. 61 B. F. Kauffman, remains as chair man of the board. There were no other changes in the bank’s staff. In his annual report, Mr. Hubbell revealed that during 1947 the Bankers Trust Company served over 3,000 more customers than during the pre vious year. New directors elected at the Central National Bank and Trust Company were William J. Goodwin, Jr., presi dent of the Des Moines Clay Company, and Edward A. Kimball, executive vice president of the Iowa Manufac turers Association. President E. F. Buckley said all H A R R Y L. W E S T P H A L Named Assistant Vice President 1933 and has been assistant cashier since 1943. Associated with the bank since 1930, Mr. Brown has been manager of the bank’s credit department. Mr. Petit joined the bank in 1945, since then he has been assistant in the probate division of the trust depart ment. In retiring from the bank, Mr. Chase, widely-known assistant vice president, rounds out 56 years of bank ing service, 49 of which were at the same institution. Mr. Chase, affection ately known to his friends as “Buck,” joined the American Savings Bank of Des Moines as a messenger boy in 1891. His father was then cashier of American Savings Bank. In 1893, Chase went to work for the Bankers Iowa State Bank which was merged in 1898 into the Des Moines Savings Bank, one of the predecessor banks of the Iowa-Des Moines National Bank. He has seen the deposits of the bank grow from $362,000 in 1893 to its pres ent total of over one hundred million dollars. Mr. Chase has been a lobby officer in the bank administration de partment for many years and has been an active member of the Pioneer Club. President Horton also announced that the bank’s name was being short ened to Iowa-Des Moines National Bank for public convenience. He stated that the trust activities of the https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis WATERLOO S E R V I N G .. NORTHEASTERN IOWA B U S I N E S S Prompt, efficient and complete banking facilities make this bank your logical choice for Northeastern Iowa business. You can be assured your ac count will receive specialized, individual attention. 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 t i o n F e d e r a l R e s e r v e S y s te m N o r t h w e s t e r n B a n ke r, F e b r u a r y , 1948 €2 Io w a N ew s other directors and all officers were re-elected. Stockholders of the Valley Bank and Trust Company voted to amend the bank’s articles of incorporation to in crease the common stock from $200,000 to $600,000. The $400,000 increase will be ac complished by the issuance of a stock dividend, Frederick M. Morrison, president, said, which will be met by transfer from earnings and other as sets in the capital accounts. New member of the Valley Bank board of directors elected was Ellis I. Levitt, president of the State Finance Company. William A. Broquist, president, and all other officers of the Iowa State Bank were re-elected at the annual meeting. Carl Moody was also given the du ties of trust officer in addition to his post as cashier. Stockholders of Capital City State Bank re-elected the bank’s seven of ficers and its ten directors and named an eighth officer, Warren Ferguson, who was named an assistant cashier. •Rolfe (). Wagner was re-elected president. Four officers of the Home Federal Savings and Loan Association were promoted at the annual meeting. Jonathan M. Fletcher, secretarytreasurer, was named executive vice president and secretary; John R. Buckley, Jr., was advanced from assistant secretary-treasurer to vice president; Edith Keeling from assistant treasurer to treasurer, and W. W. Burns, from chief appraiser to the newly created office of assistant vice president. Officers re-elected include C. B. Fletcher, board chairman, and Arthur S. Kirk, president. Officers of the Des Moines Building Loan and Savings Association were re-elected at the annual meeting, it was announced last month by A. H. Minnis, board chairman. Elmer E. Miller was renamed president and sec retary. Notre Dame’s famous Frank Leahy was in Des Moines last month to ad dress a meeting of the Dowling Club at which Harold Klein, vice president of the Iowa-Des Moines National Bank, was toastmaster. Coach Leahy was greeted by a crowd of 2,000 enthusias tic sports fans. Mr. Klein also intro duced Bishop Gerald T. Bergan and Dowling’s coach Johnny Knolla. Sioux City Noirs MERCHANTS MU T UA L BO N D IN G COMPANY Incorporated 1933 Home Office SAVINGS & LOAN BUILDING Des Moines, Iowa This is Iowa’s oldest surety company. A progressive company with experi enced, conservative management. We are proud ol our two hundred bank agents in Iowa. To be the exclusive representative of this company is an asset to your bank. • E. H. WARNER Secretary and M anager W. W. WARNER Assistant Secretary N o r t h w e s t e r n B a n ke r, F e b r u a r y , 1948 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis re-elected, A. G. Sam, bank president, announced. J. E. Kelly was named assistant cashier of the Morningside State Bank at the annual meeting of the stock holders, John Scott, Jr., president, an nounced. Renamed were Mr. Scott; J. E. DeWalt, vice president; C. I). Nissen, cashier. The officers, in addition to D. L. Griffen and 1). B. Harrington, are directors. There were no changes in the of ficers or the directors of the Toy Na tional, Security National, Live Stock National and Morningside Savings Banks. Stockholders retained R. E. Brubacher as president of the Toy Na tional, Charles R. Gossett as president of the Security National, Carl L. Fredricksen as president of the Live Stock National and H. H. Epperson as presi dent of the Morningside Savings. Harris Trust, Chicago The following changes in the official staff of the Harris Trust and Savings Bank were announced by the board of directors: Rufus R. Jeffris, formerly assistant vice president, was elected vice presi dent; William H. Froembgen and Douglas S. Seator, formerly assistant STOCKHOLDERS of the Woodbury O County Savings Bank have voted to declare a 100 per cent stock dividend out of earnings and to increase the bank’s capitalization from $100,000 to $200,000. This action was taken at the annual meeting, M. C. Eidsmoe, presi dent, announced. Kenneth B. Pillar was named assist ant cashier of the bank. Other officers and directors were re-elected. J. R. Graning, assistant cashier at the First National Bank, was elevated to the post of cashier by the stockhold ers of that bank at the annual meet ing. He succeeds Fritz Fritzson who retired the first of the year after nearly a half century in the banking business. Mr. Graning entered the employ ment of the First National Bank February 14, 1910, as a messenger and his service has been continuous since RUFUS R. JEFFRIS then except for a period of military Elected Vice President service which took him overseas in World War I. secretary and assistant cashier, re Newly elected directors of the First spectively, were elected assistant vice National Bank are G. Lawrence Avery, presidents. Walter T. Mahoney, Robert L. Terry Chalkley J. Hambleton, Jr., and Al and Joe T. Grant. bert H. Vondenbosch were elected as All other officers and directors were sistant secretaries, Henry S. Kahn was Io w a N ew s 63 Mourn B an kers in Ninety-five Iowa bankers attended the Conference of Bank Correspondents sponsored by the First National Bank of Chicago. of these Iowa bankers are included in the group pictured above. elected assistant cashier, Norman Karow was elected pro-cashier, Horace Moderwell was elected pro-secretary. William S. Morrison and Henry W. Michels were made assistant sales managers, bond department, and Ralph A. Heinsen, assistant manager, foreign department. Jones Re-elected B. Rees Jones was re-elected presi dent of the Town Mutual Dwelling Insurance Company, Des Moines, Iowa, at the fifty-sixth annual meeting. Directors re-elected were: William J. Goodwin, Rex H. Fowler and B. Rees Jones. Officers re-elected were: Lester T. Jones, vice president; Frank H. Dirst, secretary; William J. Goodwin, treas urer; C. L. Henschel, assistant secre tary; Leslie L. Greve, assistant secre tary; and Gus Scurlock, superintend ent of agents. R. Lloyd Young and Rex H. Fowler were elected members of the executive committee. President Jones reported that the company now carries insurance in force totaling $805,361,003 and is the largest exclusive dwelling insurance company in America. Insurance in force increased $78,697,399 during the past twelve months. Mr. Jones also reported an increase in assets of $150,000, bringing the total assets as of December 31st to $2,670,000. Regional Manager Eric Nissen has been appointed re gional group manager in Chicago for https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern National Life Insurance Company, with offices at 1 North La Salle. For the past 15 years Mr. Nis sen has been district group manager for the Connecticut General headquar tered at Detroit, and for nine years prior to that was a group representa tive of Aetna. A native of Boston, he graduated from Boston University in 1923, with a degree in business ad ministration. Bank of America At the annual meeting of sharehold ers of Bank of America, San Francisco, all directors were re-elected, and at the directors’ meeting which followed, all officers of the bank were reappointed. In his annual report, President L. Most M. Giannini said that 1947 was a year in which all the economic forces of California, including the facilities of Bank of America, were concentrated on the task of catching up with the requirements of greatly increased pop ulation. Significant change in the fi nancial position of the bank was in the shift of employed funds from in vestment in long term premium securi ties to amortizing loans for such con structive purposes as building, buying and equipping homes, expanding busi ness and industry, and creating more employment. “Let it be noted,” said Giannini, “that our policy has been and will continue to be to direct the credit resources of this bank into sound loans for constructive purposes which do not aggravate the inflationary trend.” W. D. Hanna R O Y E. K IL E E N JAM ES L. JO H N SO N David H. Reimers, president of the Live Stock National Bank o f Chicago, an nounces that Roy E. Kileen and James L. Johnson have been promoted from assist ant cashiers to assistant vice presidents. Walker D. Hanna, 55, investment banker of Burlington, Iowa, died last month after suffering a cerebral hem orrhage in Waterloo at Christmastime. Born in Winfield, Iowa, Mr. Hanna was graduated from the State Univer sity of Iowa in 1914. He was an official of the Peoples State Bank in Wnifield from 1915 to 1917 and in 1919 and 1920. Later he moved to Burlington and at the time of his death he was president of the Hanna-Kramer Com pany, investment bankers, and was also interested in a number of other corporations, including the Iowa-Illinois Telephone Company, Associated Public Service Company, Muscatine N o r t h w e s t e r n B a n ke r. F e b r u a r y , 1948 64 Bridge Corporation, Dexter Corpora tion of Fairfield, and Burlington In strument Company. He is survived by his wife. C O N V E N T MON S Feb. 9, 10 and 11, A. B. A. Mid-Winter Trust Conference, New York City, Waldorf-Astoria. Feb. American National, Chicago Edmund L. Andrews was named vice president of the American Na tional Bank and Trust Company at the annual meeting. Mr. Andrews, who has been with the bank’s corpo rate trust division for the past 15 years, attended the University of Illi nois and Kent College of Law where 11-13, Midwinter A.B.A. Con sumer Credit Conference, St. Louis. paramount to the rights of home own ers in a residential district, nor is it dependent upon a fixed location. Where such business may be removed without serious loss to the owners, a court may, in its discretion, order its complete abatement where the evi dence establishes that it has been con ducted so as to constitute a nuisance seriously affecting the personal and property rights of residents in its vicinity. DEAR EDITOR (Continued from page 9) Feb. 12, Group One, Iowa Bankers Association, Sioux City, Hotel Martin. “ The same thing applies to interest paid oh deposits. Some banks pay from % to 1% more than others. Is it that some banks only desire size or can they work magic with their investments? “ The above questions are a serious matter as far as public relations are concerned.” I. M. Thompson, President and Cashier, Peoples State Panic, Milan, Minnesota Feb. 22-23, Group Eleven, Iowa Bank ers Association, Burlington, Hotel Burlington. June 11-12, North Dakota and South Dakota Joint Convention in the Twin Cities, Hotel Nicollet. June 15-16, Annual Convention, Min nesota Bankers Association, Min neapolis. BANKERS YOU KNOW Oct. 24-27, Annual Convention Iowa Bankers Association, Des Moines, Hotel Fort Des Moines. (Continued from page 17) as chairman; four years later he was named president of the Corporation and in 1941 resumed the chairman ship, continuing in that capacity to E D M U N D L. A N D R E W S Now a Vice President he completed his studies in 1926. He was employed by a Chicago law firm for several years before he began his banking career in 1930. In 1933 he joined the American National Bank as a trust officer; he was elected as sistant vice president in 1945. The board also advanced Milton J. Hayes from assistant cashier to assist ant vice president. Mr. Hayes, who is with the bank’s investment division, is a graduate of the University of Chi cago. He came with the bank in 1935 as an investment analyst, and was named assistant cashier in 1940. LEGAL QUESTIONS (Continued from page 20) city, brought suit to require the re moval of a riding academy from their part of town which was being op erated as a serious nuisance to them. At the trial they were able to prove their contentions and also that the academy was not dependent upon a fixed location to do business and that it could be moved without any serious loss to the owners. The trial court ordered the removal. Should such order be sustained on appeal? Yes. In a recent case involving analogous facts the Minnesota Su preme Court has held that a riding academy is not an essential business .N o r th w e s te r n B a n ke r, F e b r u a r y , 1948 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis « J. F L YNN . P r e s . O. L D U N G A N . S e c y . Ê M Ê M Ê. • Des Moines 65 the present time. In addition to his extensive bank duties, Mr. Jaffray was president of the Soo Line Railway from 1924 until 1937 at which time he became chairman of the board. In 1944 he relinquished that post but continues on the board as a director. Mr. Jaffray’s name is associated with many important events in Min neapolis banking history. The First National-Soo Line building was erect ed under his direction and on its com pletion housed the First National Bank, which had absorbed the Secu rity National Bank. He is also a director of the North western National Life Insurance Com pany, Northwestern Fire and Marine Insurance Company, Title Insurance Company, Minnesota and Ontario Paper Company, Twin City Rapid Transit Company, Twin City Fire In surance Company, Pillsbury Mills, Inc., and Osborne-McMillan Elevator Company. Throughout his business career, Mr. Jaffray has maintained his inter est in outdoor sports. His enthusiasm for a hunting or fishing trip is as strong today as 50 years ago. When his friends wished to honor him last month on the 50th anniversary of his directorship at the First National, he had to be recalled from a hunting trip in Texas. He was one of the founders of the Minikahda Club in Minneapolis a half-century ago as well as the old Bryn Mawr course. A tournament golfer for many years, he still insists that a man’s golf score need not be higher than his age. NEWS AND VIEWS (Continued from page 16) Treasury John W. Snyder since these two gentlemen have not seen eye to eye on Mr. Eccles’ plan to curb bank credit by requiring the establishment of a special reserve in addition to the reserves now legally required. A. E. Dahl, president of the Rapid City National Bank, Rapid City, South Dakota, has certainly issued a stream lined statement in his 14th annual re port. The report is artistically prepared, graphically presented and beautifully illustrated. Deposits at the last call were over $12,982,000. The Saturday Review of Literature published in New York is supposed to have the best review of current books of any publication issued, and we be lieve it does, but it also has a classified department second to none, and es https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis pecially in its column under the head ing of “Personals.” Here are a few in which you may be interested: A R C H I T E C T U R E IS M Y H O B B Y : M e x i c o m y passion. M a k in g a liv in g as c o r p o r a tion e x e c u t iv e ju s t in cid e n ta l an d s o m e tim es borin g. W ould like interestin g, s t im u la t in g c o r r e s p o n d e n c e w i t h adult, i n tellig e n t fem ale. B o x 680-X. L O N E L Y S E A M A N w a n ts letters fr o m girls w h o a re ju st as refined as s u g a r a n d t w ic e as sw e e t. B o x 6 8 1 -X V IV A C IO U S G I R L in vites co r re sp o n d e n ce w ell-ed u ca ted , resp on sible g en tlem a n w ith zest fo r g r a c io u s living. B o x 682-X . A R E YO U A G E N IU S IN N E E D OF A S A T E L L IT E ? Y ou n g , attractive, neat w o m an. E x c e l l e n t co n fid e n tia l s e c r e t a r y , k n o w l e d g e b o o k k e e p i n g , t e n y e a r s office e x p e r i ence. C orrespondent. P e rfe c t m an u script or sta tistica l typist. E x c e lle n t d riv er and cook. M u sica lly inclined w ith deep a p p r e c ia t io n h ig h e r arts. A lu st f o r t r a v e lin g . C o m m o n sense, u n d e rsta n d in g , lo y a lty , e n thusiasm , sense o f hu m or, and p e rfe ct health. W h a t stim u la tin g position do you o ffe r ? B o x 723-X. THREE S E N S IT IV E SOULS (F E M A L E ) d esir e c o n g e n ia l spirits (m ale). C orre s p o n d e n c e d esired. B o x 722-X . I F C Y N IC IS M H A S E S C A P E D YOU, if i n tellig en ce, kindness, s in cere v e r sa tility and cu ltu ra l pursuits are y o u r forte, sin cere w o m a n in v ites su ch a g e n t le m a n ’s c o r r e s p o n d e n c e . B o x 696-X. G E N T L E M A N (v o c a tio n , b u sin ess; a v o c a tion , p r iv a t e lib r a r y , t r a v e l ) w e l c o m e s v e r y m a tu re fem in in e c o r re s p o n d e n ce on g r o w in g older g raciou sly . B o x 702-X . A T T R A C T I V E y o u n g w r ite r, a rts z e a lo t; c o r r e s p o n d w i t h “ m o d e r n m a n w h o is n o t o b so le te .” B o x 689-X. IN D E X OE A D V E R T IS E R S FEBRUARY 1948 A A l l i e d M u t u a l C a s u a l t y ...................................... A m e r ic a n N ational B an k and T ru st C o m p a n y — C h i c a g o ......................................... 33 38 It B a n k e r s S e r v i c e C o m p a n y ......................... 34 B a n k e r s T r u s t C o m p a n y — D e s M o n i e s . . 67 B a n k s , W i l l i a m H ., W a r e h o u s e s , I n c . . . . 50 B u c k h a m , H . B. a n d C o m p a n y , I n c ............ 0 8 B u r l i n g t o n B a n k s ................................................... 56 B u rro u g h s A d d in g M a ch in e C o m p a n y . . . 4 C C e n t r a l N a t i o n a l B a n k in C h i c a g o ............ C entral N ational B an k and T ru st C o m p a n y — D e s M o i n e s ................................ C h a s e N a t i o n a l B a n k .......................................... C ity N a tio n a l B a n k an d T r u s t C o m p a n y — C h i c a g o ........................ .......................... C on tin en ta l B a n k and T ru st C o m p a n y . . C on tin en tal N a tion a l B a n k — L i n c o l n . . . 54 8 26 32 51 D D a v e n p o r t , F . E ., a n d C o m p a n y ............ 49, 59 D e L u x e C h e c k P r i n t e r s , I n c .................. 28 D es M oines B uildin g, L oa n and S avin gs A s s o c i a t i o n .......................................................... (¡4 D i e b o l d , I n c ................................................................ 28 D r o v e r s N a t i o n a l B a n k ..................................... 2 o F irst F irst F irst F irst F irst F N a t i o n a l B a n k — C h i c a g o ................... 6 N a t i o n a l B a n k — O m a h a ...................... 48 N a t i o n a l B a n k — S i o u x C i t y ............... 59 St. J o s e p h S t o c k Y a r d s B a n k .......... 49 W i s c o n s i n N a t i o n a l B a n k ................. 3 9 IT CULTURED, in terestin g wom an in v ites c o r r e s p o n d e n c e s m a rt en g in e e r, on the m a t u r e side. B o x 690-X . H a m m e r m i l l P a p e r C o m p a n y ........................ H a r r i s T r u s t a n d S a v i n g s B a n k ................. H o m e I n s u r a n c e C o m p a n y ............................. YOUNG, intellig en t, fem ale, n o w h u m o r in g the c o lle g e bursar, needs p a r t -tim e w o r k . C an do ’m o s t a n y t h in g . B o x 705-X. I I n v e s t o r s S y n d i c a t e ........................................... 29 I o w a -D e s M oin es N a tion a l B a n k and T r u s t C o m p a n y ................................................. J ) I o w a L i t h o g r a p h i n g C o m p a n y ...................... 64 E U R O P E A N G E N T L E M A N , c a u g h t in b o r e dom , w o u ld lik e to e s ca p e t h r o u g h c o r r e s p o n d e n c e w ith a d v e n tu r o u s lady. Box 711-X . Y O U N G W O M A N , h i g h s c h o o l t e a c h e r , in isolated ru ra l co m m u n it y d esires m u tu a lly stim u la tin g correspon den ce. B o x 712-X . W O U L D M A TU RE , IM A G IN A TIV E LA D Y be in trig u ed b y d escrip tion o f b ook s, flo w e r s , a n d li vi n g * in r u r a l F l o r i d a b y g e n t l e m an? B o x 713-X . W A N T E D : A B E A U T IF U L B RID E. Sure ly som e S R L d am osel, p lig h ted fo r S prin g n u p t i a l s , p l a n s h e r h o n e y m o o n in L a B e l l e France. If s u ch th ere be she w ill learn s o m e t h i n g to h er a d v a n t a g e if she w ill w r it e B o x 215-X. G A L w h o l o v e s l i f e , l i b e r t y a n d is in t h e p u rsu it o f ha p p in ess d esires m a le c o r r e s p o n d e n ce . B o x 454-X. 23 24 3 K K o c h B r o t h e r s ........................................................ L, L a M o n t e , G e o r g e a n d S o n ............................. L e s s i n g A d v e r t i s i n g C o m p a n y ...................... L i v e S t o c k N a t i o n a l B a n k — C h i c a g o -----L ive. S tock N ational B a n k — O m a h a . . . . L iv e S tock N a tion a l B a n k — S iou x C i t y . . 5 64 55 o2 40’ M M e r c h a n t s M u t u a l B o n d i n g C o m p a n y . . . 62 M e r c h a n t s N a t i o n a l B a n k .............. 2 M i n n e a p o l i s - M o l i n e I m p l e m e n t C o ............ 36 M i n n e s o t a C o m m e r c i a l M e n ’ s A s s n ............ 37 N N a t i o n a l B a n k o f W a t e r l o o ........................... N a t i o n a l C a s h R e g i s t e r C o m p a n y ............ 61 7 O S W A P N E C K TIE S! (S atisfied s w a p p e r s everyw here). M ail us on e-to-six ties y o u ’ r e s i c k o f . Y o u ’ ll r e c e i v e p r o n t o s a m e n u m b e r o f h a n d s o m e ly clea n ed different t i e s w e g o t the' s a m e w a y . Then you pay m a i l m a n $1 p l u s p o s t a g e . F a r -a w a y store labels w o w d em oiselles! T iesw ap, B ox 547, W i l m i n g t o n , D e l . O m a h a N a t i o n a l B a n k ....................................... O s g o o d , N i s s l y & G a n f i e l d ................................ Y O U N G I D E A L I S T lik e s to h e a r f r o m f e m a l e w h o s e a i m is n o t m i l l i o n d o l l a r s . B o x 645-X. S St. P a u l T e r m i n a l W a r e h o u s e C o ............_. 26 S c a r b o r o u g h a n d C o m p a n y ...............31, 45, 53" S t a t e A u t o m o b i l e I n s u r a n c e A s s n .............. 32 A R E Y O U B O R E D ? L o n e s o m e ? W h y , life can be b eau tifu l! A m g en tlem a n w ith con tin en ta l b a c k g r o u n d and m a n ifold in terests, w o u ld e n jo y c o r r e s p o n d e n c e w ith s tim u la tin g y o u n g lady. B o x 610-X . E D IT O R (w om an) w ants h om e of a gre e a b le people see. T o $65. B o x 608-X. r o o m , b a t h in she w ill n ev er W H Y R IS Q U E A T R I P TO P A R IS w h en y o u c a n r e v e l in t h e d e l i g h t s o f M o n t m a r tr e at h om e and taste the p r e -w a r P a r i s g a i t e in t h e u n i q u e p i c t u r e s a n d e x o t ic p a g e s o f L a V ie P a r is ie n n e ? S in gle i s s u e s , $2.5 0; 5 c o p i e s , $10. B o u n d v o l u m e s , 26 i s s u e s , $30. B o x 466- S. 21. 64 P P u blic N ational B an k and T ru st C o ... . 34 K R o l l i n s , R i c h a r d R., I n c .................................... 29 T T e n s i o n E n v e l o p e C o r p o r a t i o n .................... 60T o o t l e L a c y N a t i o n a l B a n k ...................... 46, 47 V U nited S tates N a tio n a l B a n k — O m a h a .. 44 V V a l l e y B a n k a n d T r u s t C o m p a n y . ............ 57" \V W a l t e r s , C h a r l e s E. C o m p a n y ...................... W e s t e r n M u t u a l F i r e ......................................... W h e e l o c k a n d C u m m i n s .................................. Northwest ern Banker, February, 51 30” 29 1948 To the Point Teacher: Which is correct: A hen is sitting, or a hen is setting? Tommy: I don’t know, Miss Brown; but my pop says what bothers him is when he hears one of ours cackle, is she laying or is she lying? Only Natural Female voice to bus driver: “Can’t you wait until I get my clothes on?” Fifteen men twisted their necks out of joint while the laundress climbed aboard with a basket of clothes. Hope A tourist, traveling through western Kansas, saw a man sitting by the ruins of a house that had been blown away, and stopped to ask: “Was this your house, my friend?” “Yep.” “Any of your family blown away with the house?” “Yep, wife and four kids.” “Great Scott, man, why aren’t you hunting for them?” “Well, stranger, I’ve been in this country quite a spell. The wind’s due to change this afternoon. So I figure I might as well wait here till it brings ’em back.” Hold That Tiger Guide: “Why didn’t you shoot that tiger?” Hunter: “He didn’t have the right kind of expression on his face for a rug.” Poor Papa “ It’s a mere formality, I know, sir, but I’m here to ask your consent to my marrying your daughter.” “ Say, who in blazes suggested that your asking my consent in such a matter was a mere formality?” “Helen’s mother, sir.” sent a wire repeating just how every thing must be, and a letter reiterating the instructions. When he arrived, he was given a key and shown up to his room. In a couple of minutes he was down at the desk again, practically livid. “Look here,” he bawled at the clerk. “You’ve given me a room in the back. Didn’t I specify I wanted a room fac ing the ocean?” “ That you did,” admitted the thor oughly fed up clerk, “but did you tell us whether you meant the Atlantic, or the Pacific?” Only Temporary “Oh, I like the scenery around here,” observed the vacationist, “but the peo ple up here are queer.” “Wa-al, yes, that’s so,” replied the native. “But one good thing, most of them go back home about September.” Live Wire It seems that a girl and a boy were madly in love. So great was their love that when fate separated them and sent the boy to a distant city, he tele graphed messages of his devotion and affection each morning. Every day for three years the same Western Union messenger boy knocked on the girl’s door, bearing the messages of undying love. At the end of three years they were married—the girl and the Western Union boy. Civic Duty Minister (to mayor over phone): I found a dead mule on my lawn this morning. Please have someone re move it. Mayor: But I thought it was the minister’s duty to bury the dead. Minister: So it is—but I always notify the relatives of the deceased. Lost Asset New Excuse A very touchy guy was going to Florida, and wrote a hotel giving the most exacting details as to just what kind of accommodations he wanted. When confirmation was received, he N o r t h w e s t e r n Banker, F e b r u a r y , https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1948 Mama: I see where a woman was awarded $2,000 for the loss of a thumb. I didn’t realize a thumb was that val uable. Papa: It must have been the one she kept her husband under. Of All Places Maurice: “ For months I couldn’t discover where my wife was spending her evenings.” Ralph: “How’d ya find her?” Maurice: “One evening I went home and there she was.” Joy Juice A government crop inspector visited a Kentucky farm and began asking questions: “Do you people around here have trouble with insects getting in your corn?” “We sure do!” said the farmer, “but we jes fishes ’em out an’ drinks it any how.” Business Cycle When the salesman insults you and tells you he hasn’t got any—it’s war time. When he just insults you—it’s transition. When he merely says he hasn’t got any—reconversion is under way. And when you can tell him to go straight to that very well-heated place that, my friend, is normalcy. Fast Thinking Little Boy: I et six eggs for break fast. Teacher: You mean “ate.” Little Boy: Well, may be it was eight I et. Alibi Judge (to private hauled into court for swiping a car): Why did you do it? Private: Well, it was parked outside a cemetery so naturally I thought the owner was dead. Unhappy Day “So your married life was very un happy. What was the trouble? De cember married to May?” “Lan’ sakes, no! It was Labor Day married to de Day o’ Rest.” Big Game Hunter: Once when I was in the jungle, a lion came so close that I could feel his breath on my neck. And what do you think I did? Bored Listener: Turned up your collar? https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis I n strength of resources, in experience of personnel, in soundness of viewpoint, the Bankers Trust Company offers definite advantages to any Iowa bank that main tains or contemplates an account in Des Moines. M em ber F ed era l Deposit In s u ra n ce Corporation M em ber F ed era l R eserv e System Can We Help You With YOUR INVESTMENTS? United States Government securities continue to be a major investment among Iowa Banks. As a large owner of Government bonds, this Bank, through its officers and directors, is giving continuing study and attention to them, as well as high grade Municipal obligations. If problems arise in your Bank regarding distribution of maturities, the relationship of bond holdings to taxes, or other investment questions, a discussion of such matters with our officers may be helpful to you. Your inquiry is invited. A STRONG, DEPENDABLE CORRESPONDENT CONNECTION I0WA-DES MOINES NATIONAL BANK https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION