Full text of The Northwestern Banker : June 15, 1970, No. 1231

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Oldest Financial Journal Serving The Central and W estern States
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June 15,1970

Des Moines, Iowa

No- 1231

Banks May Receive SBA Loan Incentives
The Senate Small Business
Subcommittee will hold hearings
this week on a series of bills
to aid small business, including
a Nixon Administration bill that
would provide incentives for
banks and other lenders to in­
crease their commitment to small
business.
The Administration measure
(S. 3699) would simplify SBA
guarantee
procedures.
SBA
would get full discretion to
delegate to banks the authority
to make guaranteed loans auto­
matically-provided
the banks
take at least 10 percent of the
risk.
SBA could allow banks to use
their regular loan forms rather
than special SBA forms on guar­
anteed loans. In addition, SBA’ s
guarantee authority would be
extended to loans granted by
such non-bank groups as foun­
dations, pension funds, trusts
and community groups.
The bill also proposes to
partially lift the statutory ban
on banks taking more than a 49
percent ownership position in
any new small business invest­
ment company venture.
Banks
would be permitted to wholly
own SBICs that invest exclu­

r

sively in minority enterprises,
but not regular SBICs.
In addition, the measure offers
Federal subsidies to cover part

of the cost of SBA-guaranteed
loans made by private lenders
other than SBICs. The subsidy,
to be determined by SBA, would
pay lenders an amount not to
exceed a three percent rate,
one-third the total interest rate
payable on the loan or the dif­
ference between the prevailing
interest rate and the SBA direct
loan interest rate.
Other provisions of the Admin­
istration bill would:
1. Permit any SBIC to invest
in unincorporated small busi­
ness concerns.
2. Increase from 90 percent
to 100 percent the amount of a
loan to a small concern any
SBIC could guarantee when the
loan is made by another lender,
such as a bank.

3.
Clarify
SBA’ s
authority
to
guarantee
funds provided
SBICs and MESBICs by private
lenders.
This would authorize
SBA to guarantee those lending
to SBICs not only against default
but the “ timely payment” of
principal and interest as well.
This guarantee would include
the full faith and credit of the
U. S .
These provisions were part
of a set of recommendations out­
lined by President Nixon earlier
this year.
The Administration
bill does not contain several
tax incentives asked for by Mr.
Nixon.
These proposals come
under the jurisdiction of the
House Ways and Means Commit­
tee and the Senate Finance Com­
m ittee, not the Senate and House
Banking Committees.
The subcommittee will also
consider another bill (S, 3528)
to a ssist small businesses in
making the necessary plant and
equipment changes to meet gov­
ernment pollution control stand­
ards and to encourage the devel­
opment and utilization of new
and improved methods of waste
disposal and pollution control
by sm all businesses.
A third bill to be considered is
designed to increase participa­
tion of small building contractors.

There are so many ways we can help you
Thai's why over half the banks in Iowa are
— MNB correspondents
John Mangold
Senior V ice President

MERCHANTS NATIONAL BANK
CEDAR RAPIDS, IOWA

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IOWA NEWS
AUBURN: The Auburn Savings Bank
is observing its 50th anniversary
and 50 years of active association
with the bank for its president, H. C.
Bruns. The anniversaries will be
recognized by an informal open
house Saturday, June 20, from
1:00 p.m. to 5:00 p.m.
DAVENPORT: Dyer H. McCowen has
been appointed a specialist in munic­
ipal bonds in the Davenport office of
Dain, Kalman & Quail, Inc.
DAVENPORT: Richard L. McNurlen
has assumed the position of director
of new business development for the
Northwest Bank & Trust Company.
DAVENPORT: The Davenport Bank
& Trust Company recently opened its
temporary bank office at 38th and
Kimberly. Construction of a perma­
nent branch facility is scheduled to
begin later this year.
DES MOINES: Stanley R. Barber,
president of the Wellman Savings
Bank, has been named to a post on

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NEBRASKA NEWS
IOWA

51101

the State Board of Public Instruction
by Governor Robert D. Ray.
DES MOINES: Larry Houston is
leaving the Iowa Banking Department
to move to Alaska.
FORT MADISON: Rollin J. Hopkirk
has been elected vice president of
the Iowa State Bank and Robert N.
Johnson, Jr., has been elected to
the bank’s board of directors. Both
positions were vacated by the re­
cent death of Harry J. Schroeder, Sr.
GRUNDY CENTER: Construction has
begun on the new circular Farmers
Savings Bank. The 4,356 square foot
structure is to be completed next
year: Uni-Services, Inc. of Hampton
'is general contractor.
JEWELL: The Farmers State Bank
has announced the election of Dr.
C. L. Nelson, a local veterinarian,
and Ralph Draper, a former implement
dealer with varied business interests,
to the bank’s board of directors.
The majority stock in the bank
has been transferred from the G. C.
Rorem Scholarship Trust to the Hill
Investment Co. with Dwayne Hill
the principal stockholder. David Hill
is executive vice president of the
bank.
LE MARS: The First National Bank’s
board of directors has announced
acquisition of three business proper­
ties in downtown LeMars.
PERRY': Funeral services were held
Friday for Edward E. Case, 45, ex­
aminer for the Iowa State Dept, of
Banking. Mr. Case died of a heart
attack following a golf game in
West Union. He served the dept,
since 1959, and had been in Burling­

DAVENPORT: Approval has been re­
htceived for the Jennings State Bank
to change location 6f its main of­
w
fice.
GRAND ISLAND: Floyd J. Sager, for­ > 4merly business manager of Midland *
Luther College at Fremont, has
joined the staff of Commercial Bank
& Trust Co. as commercial loan of­
«
ficer.
MILLARD: Grove Nelson, board
chairman of the Bank of Millard, has
announced the following appoint­
ments: S. John Bednar and Mrs. Irene
Krueger, assistant cashiers, and
Leah Hiatt, supervisor of the proof
transit and demand deposit adver­
tising department.

*

OMAHA: The U. S. National Bank 4
has announced the promotion of 4
Edgar M. Morsman from commercial
loan officer to vice president. David
C. Koenigsman, manager of the
credit review section in the loan
division, and Noble E. Vosburg,
4
manager of the Master Charge credit
card department, have been named 4
assistant vice presidents.
V
OMAHA: F. Phillips Giltner has been
elected president of the First Na­ Tir
tional Bank. Mr. Giltner has been
>•
serving as executive vice president
and director of the bank. His previ­
ous banking experience includes
A
several years as a banker in Missouri
and North Dakota.

ILLINOIS NEWS
CHICAGO: Allan W. Pallante, for­
merly assistant cashier, has been

FIRST NATIONAL BANK OF OMAHA
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OMAHA: The U. S. National Bank’s
new drive-in office at 20th and Farnam opened for business last Mon­
day. The new main bank is opening
today (June 15) on 20th between
Farnam and Douglas.

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CHICAGO: John P. Hoffman, senior
vice president, and John B. Landry,
Jr., trust officer, have retired after
46 years of service at the Continen­
tal Illinois National Bank & Trust Co.
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DOWNERS GROVE: Henry A. Besser
has been elected chairman of the
board to succeed the late Ralph B.
Graham at the Downers Grove Na­
tional Bank. W. Blair Grames, Jr.,
has been appointed auditor.
MT. VERNON: A charter has been
issued'to First Bank and Trust Co.,
123 So. ÍOth Street, as a result of
a conversion of the First National
Bank to a state bank.
STERLING: An application has been
filed for a permit to organize a new
state bank. It would be called the
Lincolnway State Bank, to be located
at 2800 East Lincolnway St. in
Sterling. Total capitalization would
be $400,000.

MINNESOTA NEWS
ALEXANDRIA: Bank officials and
♦»
many of the area’s prominent citi­
A zens participated in recent ground­
breaking ceremonies for the new
First National Bank building.

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IOWA-DES MOINES
NATIONAL BANK
George H arnagel

Member Federal Deposit Insurance Corporation

step down as president, and will be
succeeded by Edward Tetrault, vice
president of the Farmers and Mer­
chants State Bank of New Ulm.
DULUTH: Three promotions have
been announced at the Northwestern
Bank of Commerce. Robert R. Skin­
ner, cashier, has been promoted to
vice president and trust officer.
Donald E. Snyder is now vice pres­
ident and cashier. Donald A. Kimmel
has been named vice president in
the loan department.
HANSKA: Alfred M. Paulson, former­
ly executive vice president, has been
elected president of the State Bank
of Hanska. He replaces Albert G.
Anderson who died recently after 61
years with the bank.

AUSTIN: The Northwestern State
Bank recently held “ Clarence Smith
Day*’ to honor its vice president
who is retiring after 43 years of bank­
ing, 20 of them in Austin.

MINNEAPOLIS: The Minnesota Bank­
ers Association annual convention
is now in session at the .Hotel
Leamington. Featured speakers in­
clude ABA President Nat S. Rogers,
noted economist Dr. Walter Heller,
and former Olympic champion Bob
Richards.

BUHL: Charles W. Moore has sold
the controlling interest of the First
National Bank and resigned as it's
president and as a member of the
bank’s board of directors.

SAUK RAPIDS: Kenneth A. Leyk has
been promoted to cashier of the
Northwestern State Bank, according
to an announcement by Keith E.
Winge, bank president.

CALEDONIA: T. E. Jaeb, president
of the Caledonia State Bank, has
sold his bank interest to the firm of
Adams & Associates. Mr. Jaeb will

WYOMING NEWS

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TORRINGTON: The grand opening
of the new Citizens National Bank
was held Saturday, June 13. The

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Phone 346-6677 (Area Code 402) Teletype 402 348-1040
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 Nebraska
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VERMILLION
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bank was originally founded in 1819.

NORTH DAKOTA NEWS
LARIMORE: Keith Goulet has joined
the staff of the Elk Valley State Bank
as cashier. He previously was em­
ployed at the Alexandria State Bank,
Alexandria, Minn., in a similar posi­
tion.

SOUTH DAKOTA NEWS
ABERDEEN: N. Tomas Wiedebush
has been elected assistant cashier
of the Aberdeen National Bank. Mr.
Wiedebush began his banking career
with the Aberdeen National in 1967.
LEAD: Dick Teeslink has been elec­
ted assistant cashier and assistant
manager of the Lead office of the
First National Bank of the Black
Hills. Mr. Teeslink has been With
the bank since 1966,

OTHER AREA NEWS
ST. JOSEPH: H. H. Broadhead, Jr.,
will become president First Stock
Yards Bank, July 1, succeeding the
retiring
Thos.
J.
McCullough.
“ Beanie’ ’ Broadhead has been with
the bank s ince graduating from
Missouri U. in 1939, and has been
vice president and a director since
1954. Mr. McCullough, president
since 1954, will continue as a direc­
tor following his retirement.
In a related action, John Karn,
cashier, was advanced to vice president and cashier.
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COLORADO NEWS
DENVER: M. Stanley Hendrickson,
president of Midwestern Financial
Corp., has announced executive staff
appointments. Gordon A. Morphew,
John A. Fortune, and Lome L. Sco­
field have been appointed vice pres­
idents.
Mr. Morphew is with Kassler &
Co., Midwestern’s mortgage banking
subsidiary; Mr. Fortune is president
of the First National Bank in Golden,
Midwestern’ s
commercial banking
subsidiary, and Mr. Scofield, who
was also appointed Midwestern’s
secretary, has managed the holding
company’s
data processing ser­
vices, systems and procedures.
FLEMING: Controlling interest of
the First National Bank has been
purchased by Colorado Western F i­
nancial Corporation from M. E.
Karsten.
NORTHGLENN: Application has been
made for the formation of a new com­
mercial bank, to be located just out­
side the city limits. The appli­
cation is one of two or possibly
three expected for the same general
area.
Organizers of the bank include:
Edward F. Hanifen, president of the
Aurora National Bank; Charles R.
Sillstrop, president of Montbello
State Bank; George T. Sweeney,
board chairman of Montbello State;
Thomas A. Waters, a director of
Montbello State and Aurora National,

and Leon E. Hayden, Jr., a law
partner of Mr. Sweeney.

MONTANA NEWS
GLACIER PARK: Montana Bankers
will convene at Many Glacier Hotel
this week (June 18—20) for their
67th annual convention. Ben Haller,
Editor of the Northwestern Banker
will cover the meeting.
GREAT FALLS: Controlling interest
of the Easts ide Bank of Montana has
been purchased by Bancorporation of
Montana from Richard D. and Charles
W. Rubie. The bank has deposits
totaling over $3 million.
HELENA: Thomas M. Campbell, for­
merly with Piper, Jaffray & Hopwood,
has been elected assistant trust of­
ficer of the First National Bank &
Trust Company.
HELENA: Robert F. Burke, senior
vice president of the First National
Bank & Trust Company, has been
named a director of Helena First,
Inc., downtown development organi­
zation.

Court Rules Against
Travel Agents. . .
A U. S. Circuit Court of Appeals
in Boston ruled unanimously —for
the second time —that travel agents
lack standing to challenge national
bank competition in their business.
Acting on a Supreme Court-ordered
review of its March, 1969, decision,
the court here upheld an earlier

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lion deposit South Shore National
Bank, Quincy, Mass.
The High Court ordered another
hearing in the case following its
March ruling that data processing
organizations have standing to seek
court orders negating rulings by the
Comptroller.
Chief Circuit Judge Bailey Aidrich distinguished between the data
processors and the travel agents in
a brief opinion.

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No. Í231 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 c la s s postage paid at D es Moines, Iowa. Address all mail

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