Full text of The Northwestern Banker : January 22, 1968, No. 1077

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Oldest Financial Journal West o f the Mississippi

No. 1077 ______ __ _____________ Des Moines, Iowa____________

To Appeal Data Processing Decision
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In a decision that will be ap
pealed, a Federal district court
has ruled that data processing
firms have no standing to chal
lenge national bank entry into
their field because the National
Bank Act offers them no pro
tection against such competi
tion.
Judge Philip Neville of the
U. S. District Court in St. Paul,
Minn., on the basis of that find
ing, dismissed the suit brought
by the Assn, of Data P rocess
ing Service Organizations, Inc.,
a national trade group, and Data
Systems, Inc., a Minneapolis
firm, against the Comptroller of
the Currency and American Na
tional Bank and Trust C o., St.
Paul.
Both plaintiffs will file an
appeal with the U. S. Eighth
Circuit Court of Appeals. Mean
time, another suit against the
Comptroller and Industrial Na
tional Bank of Rhode Island, in
volving the same issue—whether
a national bank may offer data
processing services to the pub
lic —is pending in a Federal
district court in Providence. A
decision in that case on the
standing issue and motion for

dismissal is expected in about
one month.
In handing down the first
decision on the data processing
question in favor of the banking
industry, Judge Neville relied
heavily on a 1967 opinion of
Eighth Circuit Court holding
that the Administrative Proce
dure Act requires one to have
suffered “ a legal wrong” in
order to have standing to chal
lenge programs administered by
governmental
agencies.
The
plaintiffs had cited that statute
in their arguments on standing.
The only injury the data pro
cessing firms alleged, he said,
is ‘ ‘ solely an economic injury
arising from what is contended
to be illegal competition.” And,
he added, ‘ ‘ there is a long and
well established line of judicial
authority holding that plaintiffs
whose only injury is loss due
to competition lack standing to
maintain legal action to redress
their economic injury. These
decisions hold that mere com
petitive injury even though re
sulting from governmental ac
tion does not give standing to
a person so injured to seek
relief in the courts.”

January 22,1968
In one of the most important
aspects of the decision, Judge
Neville said he found the stand
ing issue in the data processing
case and those in other cases
challenging Comptroller rulings
on expansion of powers ‘ ‘ dis
tinguishable.”
B asically, he
said, the National Bank Act
contains provisions that im
pliedly ‘ ‘ protect a c la s s ” such
as insurance agents and mutual
funds. ‘ ‘ There is no such stat
ute protecting data processors,”
he said.

B U L L E T I N S ...
CHICAGO: Bernard Miller has
been advanced from a.v.p. to
v.p. of Drovers Natl. Bank. Mr.
Miller, who lives in Fort Dodge,
la ., is in the bank’ s correspon
dent dept.
ELDON, IA .: J. C. Blackford has
been named pres, of the First
Natl. Bank, Eldon. He succeeds
Robt. Weidenbach. Mr. Black
ford will continue as pres, of
Union Bank&Tr. C o., Ottumwa,
serving the Eldon bank on an
inactive basis.
IOWA F A L L S, IA .: Richard E.
Miller has been advanced from
cash, to v.p. and Richard Peter
son moved from a.c. to cash, at
Citizens State Bank.

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IOWA NEWS
ALTA VISTA: Paul Hentges, cash,
of the Alta V ista State Bank, has
been elected a director. The bank
has purchased the Harry Schulz
Ins. Agency and merged it with
the Joe Menges Agency under the
name of Alta V ista Ins. Agency.
Harry Schulz was named a .c. and
mgr. of the agency.
BELLE PLAINE: Keith G. Gaffney,
cash ., State Bank of B elle Plaine,
has been advanced to v.p. & cash.
BUFFALO: Theodore Radetzki has
been advanced from a .c. to cash,
o f Buffalo Sav. Bank.
BURLINGTON: James E .P ea re was
named a .t.o. and Terry D. Leffler
was named a .c. in the installment
loan dept, o f the First Natl. Bank.
CLINTON: Ed Jorgenson retired re
cently from First Natl. Bank. He
has joined Clinton Natl. Bank and
will be in charge o f the bank’ s
expansion and building program.
He was with First Natl, for 43
years.
DAVENPORT: Northwest Bank &
Tr. Co. has elected Theron P.
Thomsen, v.p ., Life Investors Ins.
C o., Cedar Rapids, as a director.
DES MOINES: Central Natl. Bank &
Tr. C o. advanced Richard L . Smith,
from a.v.p. to v.p. in the correspon
dent bank dept. Barton C . Petticord is now ca sh .; W. A. Bush is

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controller, and Robert D. Jones is
a new a .c. New directors are:
J. Merrill Anderson of the Iowa
Farm Bureau; Ed Glazer, pres.,D ial
Finance, and Charles Betts, Jr.,
pres., Betts C adillac,
DONAHUE: J. Orville Grell has
been elected a v.p. of the Donahue
Sav. Bank. He has served on the
bank’ s board since 1940* He su c
ceeds H. C . Friederichs, who
passed away in N ov., 1967, after
having served on the board sin ce
1927. Roy E. Grell, a retired farm
er and a son-in-law of the late
Mr. Friederichs, was elected to
the board.
FORT DODGE: JohnM. Peters, t.o .,
The State Bank, has been advanced
to v.p. and t.o . He joined the bank
in August, 1967HARCOURT: L . E. Carlson, cash,
o f the Harcourt Sav. Bank, was
elected e xec. v.p. & cash. He
joined the bank in December, 1951.
HILLS: T . R . James, cash, of
H ills Bank & Tr. C o., has ad
vanced to v.p. & cash. Ivan H.
Maas was elected new chairman
o f the board. Dr. William H. Olin
o f University H ospital, Iowa City,
was named a director to su cceed
the late J. E. Pechman.
INDEPENDENCE: Gary F. Short
o f Cedar F a lls has joined the Sec.
St. Bank, as an a.v.p. It was re
ported in last week’ s issue that
Mr. Short had joined a Cedar Falls
bank. He has been with Swift &

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LOWDEN: American Tr. and Sav.
has named A. L- Mensing as chair
man of the board to su cceed W. H.
Witte. Florence L. Stout has been
added to the board.
MONONA: Joel E. McClure has
been named cash, of the Union
State Bank. He was previously in
banking at Strawberry Point and in
southern California.
OTTUMWA: Union Bank & Tr. Co.
advanced Max von Schrader, Jr.
from v.p. to exec. v.p. and Richard
M. A ckley from v.p. & t.o. to senior
v.p. & t.o. Robert J. Laughridge
advanced from a.v.p. to v.p ., and
J. R. Rukgaber moved from mgr. of
farm service dept, to a.v.p. and
mgr. of farm service dept. The bank
is now paying 5% on six-months
CD’ s on minimum of $500.
STACYVILLE: Gerald Helin has
advanced from a .c. to cash, at the
Stacyville Sav. Bank.
WATERLOO: Wm. E. Troutman
has resigned as exec. v.p. at the
P eoples Bank & Tr. C o., Waterloo.
WATERLOO: Included in promo
tions at Natl. Bank of Waterloo
was the election of Wm. J. Rickert,
from a.v.p. to v.p.

NEBRASKA NEWS

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AURORA: Thomas K. Wanek has
joined the staff of the Farmers
State Bank as ag. rep.
CODY: Henry G. Greff has been
promoted to a.v.p. at the Bank o f
Cody.
COZAD: Tom Cummings has been

LINCOLN ...F irst in Transit Service
named pres, of the First Natl.
Bank. Robert Walker, former bank
pres., has been named chairman of
the board. Other officers elected
were: Tom Brownfield, senior v.p .;
Jerry Wittenberger, v .p .; and Dick
Hansen, cash.
CRETE: Kenneth L . Barth has
been promoted to v.p. at the City
Natl. Bank. Gerald Kerst su cceed s
him as cash, and Frank E. Krivohlavek has been named a.c. Mr.
Kerst and Mr. Barth also were
elected to the bank board o f di
rectors.
FREMONT: J. D. Schiermeyer has
been named chairman of the board
at the First State Bank. James H.
Moore, Jr., has been promoted to
pres, from e x ec. v.p. The bank also
announced a 50% increase in its
surplus account, from $100,000 to
$150,000.
KENESAW: D. L. Boesen has re
signed as v.p. from the Adams
County Bank. Allen Norris, former
ly in charge of the bank’ s insur
ance dept., has been named v.p.
LEXINGTON: Virginia Braithwait,
who has been v.p. & cash, of the
Lexington State Bank, has been
named v.p. Duane Phillipi has
been moved up from a .c. to cash.,
and Stephen L. Anderson has been
named a .c.
LINCOLN: Larry L. Bazata has
been appointed a.c. of the Cornhusker Bank. He has been with the
bank since July, 1967.
MILLARD: Wilmer H. Petersen and
Low ell E. Boetger, v .p .’ s, Bank o f
Millard; Gilbert L. Thompson, a .c.;
and Attorney Robert C. Fisk have
been added to the board of direc

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tors of the Bank of Millard. Mr.
Boetger was promoted from a.c. to
v.p.
OMAHA: The Nebraska Investment
Bankers A ssociation will hold its
annual meeting Thursday, Feb. 1,
1968.
OMAHA: Stuart C. Sherwood has
been nominated as a director of
the Omaha Natl. Bank. He is pres.
& ch ief exec. off. of Fairmont
Foods C o. The election will be
at the stockholders meeting on
January 26.
TALMAGE: C e cil M. Asa, v.p. &
director o f the Bank of Talmage,
recently has completed 50 years
service with that bank and has
been awarded a 50-year plaque by
the NBA.
TEKAMAH: Rex Kates, v.p., First
Natl. Bank, has resigned after 16
years of service with the bank. He
is leaving on a vacation to Hawaii
and will enter private business on
March 1.

MINNESOTA NEWS
BROWNS VALLEY: M. A. Zabel
has been advanced from exec. v.p.
to pres, o f the Union State Bank.
Other promotions include: P . J.
Zabel from a .c. to v .p .; Jay W.

Lowry from cash, to v.p. & cash.,
and Loa Meyer to a .c.
CHASKA: The Garver County State
Bank, now in its 98th year, moved
to its new building last week.
CROOKSTON: Arnold M. Johnson
has been elected v.p. & cash, of
the First Natl. Bank. He has been
with the bank for six years. Previ
ously, he was with banks in Souris
and Walhalla, N. D.
DUNDAS: Burton J. Paulsen, former
a.v.p. at Northwestern State Bank,
Northfield, has joined the Dundas
State Bank as cash.
GAYLORD: I. M. N elson, pres.,
Citizens State Bank, completed 50
years as an employee and officer
of the Citizens State Bank early
this month. Joining the bank at
age 17, he advanced and became
pres, in January, 1945. His son,
J. David N elson, was named a.c.
at the annual meeting.
HUGO: Mark G. Houle has been
advanced from exec. v.p. to pres,
of the First State Bank. A. Richard
Gessner has been advanced from
a .c. to cash.
LEWISVILLE: Edwin Lueth has re(Continued to back page)

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signed as cash, o f the Merchants
State Bank.
MINNEAPOLIS: The 19th annual
Men’ s Finance Forum, sponsored
by the First Natl. Bank, starts
Jan. 29—30.
MINNEAPOLIS: Dain, Kalman &
Quail, Minneapolis based invest
ment firm, has signed a 19 year
lease, including an option to buy
the 26-story building, located at
6th & Marquette. Name of the build
ing will be changed to Dain Tower.
MINNEAPOLIS: At the annual
meeting o f the First Natl. Bank
on Jan. 26, George H. Dixon will
be elected pres, of the bank and
Gordon Murray will move up to
chairman of the board. Mr. Dixon,
47, has been with The Sperry and
Hutchinson Company the past 11
years and, sin ce 1964, has been
the firm’s v .p .—finance and treas.

Open Campaign Against
Federal Chartering Bill
A grassroots campaign to defeat
the
“ Federal
chartering”
bill
(H.R. 13718) was launched at a
meeting of about 200 key state
banking association officiials held
by A.B.A. in Washington last week.
Dr. Charls E. Walker, A .B .A .

exec, v.p ., described the measure
as possibly the “ greatest le g is
lative challenge commercial bankhas faced sin ce the 1930’ s . ” And
he warned bankers not to “ under
estimate the strength of the le g is
lative thrust that the combined
savings and loan and savings bank
industries can muster” in support
o f Federal chartering.
Both supporters and opponents
of the measure have been busy
during the congressional recess
contacting members of Congress
and urging them to vote for or
against the b ill. The United States
Savings and Loan League, for ex
ample, has made two all League
member mailings and another mail
ing to its legislative committee
urging members to support the
bill by contacting and communica
ting with members of Congress.
The “ Federal chartering” bill
already has cleared the House
Banking Committee, so a vote by
the full House o f Representatives
could come early this year. At
least an effort will be made to
get a relative early vote so that
action also can be taken this year
by the Senate. Present indications
are that the bill will not even be
considered by the Senate Banking

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issue rather than be caught this
year in a tug-of-war between two
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No. 1077 Northwestern Banker is published five times monthly by the Northwestern Banker Company, 306 Fifteenth Street, Des
Moines, Iowa 50309. Subscriptions 50£ per copy, $6*per year. Second class postage paid at Des Moines, Iowa. Address all mail
subscriptions, changes of address (Forms 3579), manuscripts, mail items to above address.

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Full text of The Northwestern Banker : January 22, 1968, No. 1077

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