Full text of The Northwestern Banker : June 1930, 35th Year, Number 515

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A. P. G IAIM N IN I
Founder of W o r ld ’s Largest Bank Holding
Company

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Federal Reserve Bank of St. Louis

Lee, H iggin son & Co.
Established 1848
BOSTON

NEW YORK

CHICAGO
Higginson & Co.

.

.

.

.

.

London

We announce the re­
moval o f our offices
to the secon d flo o r
o f th e n ew B o a r d
o f Trade Building
M ay 15,1930
Telephone

Webster 4848

Private Entrance

137 W e st Jackson B o u le v a r d

at h a Salle Street

N o rth w estern Banker
Des M oines
The Oldest Financial Journal W est o f the Mississippi
JU N E, 1930

Number 515

35th Year

Just Between U s

In This Issue

Observing Childhood
The little girl Avas a timid little soul, and
her father was trying to reason her out
o f her fears. He tried to tell her that
there was nothing to fear in mice and
frogs and bugs.
“ Papa,” she asked, “ ain’t you ’fraid o f
bugs ?”
“ No, dear.”
“ A in ’t you ’fraid o f snakes?”
“ No, dear.”
“ Papa, ain’t you ’fraid of nothing else
in the whole A\Torld but just mamma?”

^

A C haracter Sketch— A . P. Giannini
Farm s and F arm ing
Legal D epartm ent
B ranch B anking fo r Country T ow ns
Iow a G roup M eeting Snapshots
Iow a G roup M eetings
N ew s and V iew s

21
23
24
25
26
34

B y Clifford DePuy

BO N D S A N D IN V E ST M E N T S
K eep Y ou r Losses D ow n

45-69
45

B y Leslie Newton

Listed or N on-Listed B on ds?
C h icago Investm ent N ew s

“ Miranda, whassat light shinin’ in yo
eyes ?”
“ Tha’s my stop light, Rastus.”

56
60

B y Wm. H. Maas

Insurance
Iow a C onvention and N ew s Section
South D akota N ew s
Bankers W ants
N ebraska N ew s
M innesota N ew s
N orth D ak ota N ew s
In the D irectors’ R oom
Index to A dvertisers

W rite it in your heart that every day
is the best day in the year.— Emerson.
Killing time— what an odd expression.
Time is the stuff life is made of. Time
is the dimple in the cheek o f possibility.
Kill time and you murder opportunity.
K ill time and you stab every favoring
chance.— Gordon.

• ONE OF TH E

71
79

101
104
105
109
113
115
116

•

DeEu y Banking Publications

R. W . M O O R H E A D
E d itor

W M . H. M A A S
1st N ational Bk. B ldg.
V ic e President
C hicago
F R A N K P. S Y M S
25 W e st 45th Street
V ic e P resident
N ew York

DORAN
E d itor

Member, Audit Bureau of Circulations
Member,
Financial Advertisers Association

20

B y the Farm Editor

The Signal

L. D. V A N
A ssocia te

19

B y Roscoe Mary

Applying for a Job

G E R A L D A. S N ID E R
A ssocia te Publisher

14
16
17

B y Dr. B. M. Anderson, Jr.

H om e N ursing fo r Banks

Employer: “ W hy did you leave your
last place?”
Young Lady A pplicant: “ I was caught
kissing my boss, sir !”
E m ployer: “ Er-rum, you can start here
in the morning.”

C L IF F O R D D E P U Y
Publisher

A cross from the P ublisher
F ron tispiece, “ The R ed B ird”
A re W e Rushing T h rou gh a Stop S ignal?

(O F F IC E S
OMAHA
M IN N E A P O L IS

D F S \ M ^ I N E S X’
M ILW A U K EE

C H IC A G O

NEW~YORK

F. S. L E W I S
840 Lbr. E x. B ldg.
M inn eap olis, M inn.
S pecial R epresentative

Northwestern Banker, published monthly by the DePuy Publishing Company, Inc., at 555 7th street, Des Moines, Iowa.
Subscription, 50e per copy, $3.00 per year. Entered as second-class matter at the Des Moines post office. Copyright, 1930.


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Federal Reserve Bank of St. Louis

Northwestern Banker

June 1930

A June List
of Bank Investments

O

UR

list of current investment

offerings for June includes

eight short term bond and note
issues which are especially suited to
the needs of banks. There are vari­
ous maturities from six months to
five years; coupons 5 and 6 per cent;
yields from 5.00 to 6.50 per cent.
Full details will be sent promptly
on request.

F o rem a n -St a t e C orporation
Investment Affiliate of the Foreman-State National Bank

CHICAGO
33 N. La Salle St.

Northwestern Banker

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Federal Reserve Bank of St. Louis

June 1930

NEW Y O R K
52 Wall Street


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Federal Reserve Bank of St. Louis

c 4 Cedar Rapids Dank
I lilili
i il MU'I «Sii i l ì a c i «
; t in s i I

Seroicing

il IM I IMI nuil

Osili I ou)a

Regardless of where your bank may be lo­
cated, you will find it not only convenient
but often necessary to have proper represen­
tation in Cedar Rapids.
The Merchants National offers you a corre­
spondent service second to none.

It is mod­

ern in every respect and you will find here
a service that is representative of the high
ideals of this institution.

MERCHANTS
N A T IO N A L
C edar R apids

BANK
Iow a

Northwestern Banker

June 1930

6

Northwestern Banker

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Federal Reserve Bank of St. Louis

Service for Banks
of the
Middle W est
For over sixty-two years this bank has
conducted a constantly increasing general
banking business— a business that makes it
today one of the outstanding financial insti­
tutions of Chicago.
During the same period, it has specialized
as the clearing bouse for Middle West live
stock business.
Banks throughout this great section have
found in the broad general banking facili­
ties of this institution and its intimate con­
tact with the live stock industry, a service
ideally suited for their needs.
W e solicit an opportunity to demonstrate
that service to your bank.

THE STOCKTARDS
NATIONALBANK
a n r>
TH E STOCK YARDS TRU ST fir SAVINGS B A N K

<2/* CHICAGO

June 1930

7

Y ou know our town ...
what would you do?


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Federal Reserve Bank of St. Louis

yy

A n out-of-tow n bank was considering opening
a new department— the first o f its kind in their
town. On a trip to Chicago, the president dropped
in to discuss the problem with one o f our officers.
N o t o n ly was o u r o ffic e r g la d to g iv e the
necessary time, but he was able to contribute
to the solution o f the problem. He knew the
tow n; he knew the bank; he knew the ex­
perience o f other banks that had tried the plan.
C en tral T ru st C o m p a n y o f I ll in o is , as the
Chicago office for your bank, is ready to main­
tain the same close contact with you.

C e n t r a l T r u st
COMPANY OF ILLINOIS
208 South La Salle Street
CH ICAG O
J
Northwestern Banker

June 1930

8

B a n k in g
F ri ends ln p s

Northwestern Banker

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Federal Reserve Bank of St. Louis

Plie kistory o f Central H anover
15

closely linked witk tke kistory

o f m any of tke leading kanks m
all sections o f tke U n ited States.
Central H an over takes pride in tke
number and long duration o f tk ese
correspondent relationskips. P k e y
offer tke best proof of tke friendly
and efficient nature of

C en tral

H an over correspondent facilities.

C entral H anover
B A N K

A N D

TR U ST

C O M P A N Y

N EW YORK
14 Offices in 14 M anhattan Centers
R e p r e se n ta tiv e s m L o n d o n , P a r i s , B e r lin a n d B u e n o s A ir e s

N O SE C U R IT IE S F O R SA LE
C A P IT A L , SU R P L U S

June 1930

AND

U N D I V I D E D P R O F IT S

OVER

105 M I L L I O N D O L L A R S


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Federal Reserve Bank of St. Louis

9

Northwestern Banker

June 1930

10

Investment Service
Based on
Seasoned Judgment
T j'O R many years the First National Bank of Chicago
^
and the First Union Trust and Savings Bank have car­
ried large investments in bonds and securities and, because
of this fact, maintain a department devoted to analysis and
statistics. There is available to correspondents not only the
experience of the banks in the selection of their own
investments, but also the seasoned judgment of specialists
upon the various forms of securities suitable for banks.
This is but one phase of the complete facilities afforded
through “ Division F” which, for twenty-five years, has
handled the business of banks and bankers exclusively.
W ith the Divisional Organization all departments of the
two banks are coordinated, thus affording an efficiently
organized service that is international in scope.

The First N ational
Bank o f Chicago
F irst Union T ru st
and Savings Bank
R E S O U R C E S
Northwestern Banker

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Federal Reserve Bank of St. Louis

June 1930

E X C E E D

$ 6 0 0 , 0 0 0 , 0 0 0 . 0 0


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Federal Reserve Bank of St. Louis

11

E

XP E R IE N C E and a sound appreci­
ation o f values make for strength

in a Bank’s investment account. Corre­
spondents know that the First N ational
Bank in Minneapolis is always ready and
able to help them select desirable bonds
and commercial paper for investment,
or to furnish dependable credit infor­
mation on which their ow n selections
can be based.

Fi r s t N a t i o n a l Ba n k
The Oldest Bank in Minneapolis — Established 1864

M INNEAPOLIS, M IN N E SO TA
L. E. WAKEFIELD, President
DEPARTM ENT of BANKS and BANKERS
P. J. LEEMAN
Vice-President

M. O. GRANGAARD
Vice-President

v

C. B. BROMBACH
A. J BJERKEN
Asst' Cash,er

Asst. Cashier

W. A. VOLKMANN
Asst. Cashier

Northwestern Banker

June 1930

12

Northwestern Banker

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Federal Reserve Bank of St. Louis

Yes, we shall be glad to
see you at the S tate
C o n v e n tio n .

W e w el-

come this opportunity to
meet fellow bankers in
a round table discussion
of bank affairs.

D

R
OVERS
N A T IO N A L B A N K
TRL5T6-SAVINGS BANK

Union Stock Yards - Chicago, 111.

June 1930

13

THE NEW HOME

OF A GREAT FINANCIAL INSTITUTION
Q) I O C A T E D in the heart of the Northwests
m etrop olis, is the new home of the
Northwest Bancorporation.

This new building with

its impressiveness, p la n n ed by the leaders of th is
great financial institution and chiseled from marble,
stone and steel, stands as a monument to their faith
in M inneapolis and the Northwest, and the future of
this great area.
The Northwestern National Bank, the Minnesota
Lo an and Trust C om pan y and the B an cN o rth w e st
Company as well as the Northwest Bancorporation
are located in the new Northwestern Bank Building.
The splendid new quarters of this great financial
institution together with its affiliated 104 banks and
trust companies and over $483,000,000 in resources,
even better equip the Northwest Bancorporation to
render a com plete b anking service to meet the
requirements of agriculture and of all business and
industry operating in the M id d le Northwest.

No r t h w e st


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Federal Reserve Bank of St. Louis

banco rpo ratio n

COMBINED

RESOURCES O V E R
$ 483 , 000,000
MINNEAPOLIS, MINNESOTA

Northwestern Banker

June 1930

14

All of this discussion
concerning the changes
which should be made in
our present banking sys­
tem must be crystallized into the question of
whether we shall revolutionize or reorganize our
present hanking system.
Many financial minds have thought that we
should completely revolutionize our present bank­
ing structure.
Others have felt that this would be a great and
grave mistake, and that we should reorganize grad­
ually and carefully and continue to follow the paths
which have been found satisfactory and successful
in the past, and make what conservative changes are
necessary in order to strengthen our present system.
One of the strongest advocates for reorganizing
our present system and improving it along the lines
which have been found successful in the past is
Benjamin M. Anderson, Jr., economist of the
Chase National Bank of the City of New York, who
recently delivered an address before the North
Carolina Bankers Association, and which is pub­
lished in this issue of T he N orthwestern B an ker .

Shall W e
Revolutionize
or Reorganize?

Mr. Anderson brings out the following points:
1. Bank failures have been local and have been
due to unsatisfactory agricultural conditions
in that particular district.
2. The proposed chain, group and branch banking
movement leaves out small banks, which are
the ones which should be helped and assisted.
3. Cities of 10,000 population and banks with
$100,000 capital or more have practically had
no trouble. Therefore it is the smaller banks
which have been in difficulty.
4. Great branch banking systems have suffered
by business depressions the same as unit banks.
Such systems which have been affected have
been in Denmark— Canada, with 400 branches
-—and branch banks in China, Italy, Japan
and Austria, have all had losses.

Northwestern Banker

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Federal Reserve Bank of St. Louis

Jane 1930

5. One bank to 750 or 1,400 people is too small
to adequately take care of a proper return to
the officers and stockholders of such an institu­
tion and to make it sufficiently strong to be
of benefit to the community.
6. Lack of diversification has been attributed as
the cause of bank failures. This can be and
has been overcome by diversification through
correspondent banks. A bank which has not
loaned all of its money locally but has had its
correspondent bank handle it for them has con­
tinued to operate satisfactorily.
These are some of the important points which
Mr. Anderson, brings out, and he also emphasizes
these suggestions by saying: “ We do not need
branch banking either for the purpose of securing
diversification or for the purpose of bringing about
a seasonal flow of funds from region to region. The
system of correspondent banking relations has ac­
complished this for many decades, and good bank­
ers everywhere know how to do it.”
Some of the remedies which Mr. Anderson points
out are as follow s:
1. Consolidations of smaller banks in communi­
ties where one bank could do the work of
three.
2. State legislation giving the state banking au­
thorities power to accomplish this plan of con­
solidation.
3. An amendment to the National Bank law per­
mitting National banks to have branches where
states allow State banks to have them.
4. A limited extension of branch banking by state
law might be helpful in some states.
Local financial independence is much to be de­
sired according to Mr. Anderson, and he says that
“ we are moving much too fast and too far in the
direction of centralization.” This is the one point
which has been emphasized by many economists
against the group idea.
‘ ‘ I believe in the general system of local financial

15

independence,” says Mr. Anderson. “ I am op­
posed to having the bankers of one city dominate
the banking of another city. I believe that this
country ought to have in every city several strong
independent financial institutions interested in the
local community and dealing as principals with the
banks of other cities rather than acting merely as
their agents. I believe that our system of corre­
spondent banks gives us all the financial interde­
pendence that we need, and that the services which
a correspondent bank in a great city performs for
the banker in a smaller place make it unnecessary
for him to have the elaborate facilities which a
great bank has.”
L et’s not revolutionize our great banking system
— but let’s reorganize it when and where it is
needed for the best interests of all.
Banking and politics will
always have much in common,
because laws are being passed
both by state legislatures and by Congress govern­
ing the operations of financial institutions through­
out the country.
Sound legislation of the right kind which will
benefit both the depositors and the stockholders is
always welcomed by every intelligent and right
thinking banker.
However, when a Bankers Association or member
thereof is attacked by individuals seeking political
power, the effect is always bad and the result un­
satisfactory.
The South Dakota Bankers Association has been
the target for some time of Attorney-General M.
Q. Sharpe of that state.
Thomas O ’Brien, President of the South Dakota
Bankers Association, in an address delivered before
the group meetings last month, defended the As­
sociation on the work which it has been doing.
Mr. O ’Brien points out that the reason for Mr.
Sharpe’s attack on the Association was because
there had not been greater enthusiasm on the part
of South Dakota bankers toward Mr. Sharpe’s
candidacy for governor.
Be that as it may, any Attorney-General who
makes such statements as Mr. Sharpe has made cer­
tainly must be exceedingly biased and prejudiced,
regardless of the causes which are actuating those
prejudices.
Mr. Sharpe believes that the South Dakota Bank­
ers Association should be abolished ; that no South
Dakota banker should hold a public office in the
state ; that the Superintendent of Banks should not
be a banker; and that other similar idiotic sugges­
tions should be inaugurated.

Banking and
Politics


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Federal Reserve Bank of St. Louis

We are cpiite sure that it would be unconstitu­
tional to prevent bankers from holding public office
in the state.
At the present time in South Dakota the only
citizens who are disfranchised are idiots, incompe­
tents and convicts, and Attorney-General Sharpe
certainly pays a fine compliment to the bankers of
his state when he puts them in that class.
Mr. O ’Brien answers very nicely the argument
that the Superintendent of Banks should not be a
banker, by saying that in that case then the Attor­
ney-General should not be a lawyer, and the head
of the Board of Health should not, be a doctor, and
the engineering department should not be headed
by an engineer.
For many years we have been personally in touch
with the officers, committees and actual work being
done by the South Dakota Bankers Association,
and the Superintendent of Banks, and in all our
years of contact with them the Association has done
a constructive work and the Superintendent of
Banking has helped to carry on the duties of his
office in an efficient and businesslike manner.
It certainly is a shame and a disgrace to allow
any public official to make a political football out
of an Association so absolutely worthwhile and nec­
essary to the future development of South Dakota
as the State Bankers Association.
The only answer to Mr. Sharpe’s derogatory
statements will be for the bankers to “ say it with
ballots” whenever he runs for any office.

At a recent meeting of the
American Management As­
sociation in New York, J. P.
Jordan, of the firm of Stevenson, Harrison & Jor­
dan, pointed out that as companies increased in
size, either through natural growth, absorbing other
companies, or being absorbed by other companies,
the men who were big fish in little puddles become
lit fie fish in big puddles; with the result that they
lose the sense of responsibility originally felt. They
become, therefore, less efficient as producers.

Big Fish in
Little Puddles

This problem will become increasingly important
as bank mergers continue, both in smaller communi­
ties and in larger ones, because the same principle
applies.
The man who was president of a bank yesterday
and becomes vice-president of a consolidated bank
may not feel as important or as much responsibility
as he felt previously. If this is the case he will not
put in as much effort to make the merged institu­
tion a success as he might otherwise have done.

Northwestern Banker

June 1930

16

“ THE RED BIRD”
Painted by R udolf Ingerle with the collaboration of Mrs. W oolfenden. Mr. Ingerle is a celebrated Chicago
artist and president off the Chicago A rt Society

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Federal Reserve Bank of St. Louis

C opyright b y
The Thos. D. M urphy Company
Red Oak, Iowa

June 1930

17
T h i s fi gure,
HE Commit­
thirty billion dol­
tee on Bank­
lars, h o w e v e r ,
ing and Curgives a very exag­
r e n c y of t h e
gerated picture of
House o f Reprethe e x t e n t to
s e n t a t i v e s at
which the move­
Washington h a s
ment has gone.
been holding a
From the standpoint o f the
A discussion of branch hanking throughout Federal
highly important set o f
question in hand, we may
hearings on the subject of
reserve districts, and the advantages and disadvantages
take out the many billions
group, chain and branch
of group and chain banking.
represented by the great
banking. It is giving very
New York banks whose
special consideration to a
branches
are
all
within the city o f New
proposal that the National Bank Act be
B y B. M. ANDERSON, JR.,
York or else in foreign countries, and the
amended; so that National hanks may
Economist, the Chase National Bank,
bulk o f whose loans and investments are
have the power to extend branches
N ew Y ork City
in any case not in branches but in the
throughout “ trade areas” which may over­
head offices. A similar reduction can be
lap . State lines, which may be as wide as
obliged to disagree radically both as to
made fo r a number o f other important
Federal Reserve districts, and which may
their diagnosis and as to their prescrip­
cities. O f the banks that belong to chains
even overlap Federal Reserve districts in
tion. The causes o f the failures of small
or groups, but operate no branches, there
cases where a city’s “ trade area” runs
country banks are to be found in special
were on this date 1,984, with total loans
beyond a Federal Reserve district. Na­
circumstances which have little to do with
and investments o f $4,913,000,000, the
tional banks, under this plan, would he
the general question o f chain, group and
average o f loans and investments being
empowered to do this whether the States
branch banking versus unit banking. And
about $2,500,000. In addition, there are
consent or not. National banks located
the remedy proposed would touch and
119 banks, belonging to chains or groups,
in one State could invade another State
help very few o f the existing country
that operate branches, with total loans
whose laws prohibit branches o f banks
banks which are in a weakened condi­
and investments o f $6,264,000,000, or an
chartered elsewhere. The primary pur­
tion.
average o f $52,600,000 per bank.
pose o f this proposal is to arrest the fail­
These figures show the immense dispar­
W e do not need to make a revolution in
ures among small banks in country dis­
ity in average size between the banks that
the general banking system o f the United
tricts. A secondary purpose is to give
States because o f conditions in small have gone into chains and groups, and the
the National bank charter such an ad­
small country banks that have been fail­
banks in stricken agricultural regions.
vantage over State bank charters that the
ing, with average deposits o f $300,000.
Other, much more moderate, proposals
National banking system will grow at the
The existing chain and group bank move­
may be made which would be much more
expense o f State banking systems. The
ment is primarily a move­
theory o f “ parity” between
ment which is bringing
State and National banks
“ The adoption of the proposed Federal legislation authoriz­
relatively large banks to­
is definitely abandoned,
gether.
In
exceptional
ing National banks to establish branches throughout Trade
and the purpose is to give
cases, it is including some
National banks a definite
areas’ as wide as the Federal Reserve Districts or even, in
o f the small banks which
and great advantage over
certain cases, wider, would be like the firing of the starter’s
the legislative proposals
State banks.
pistol in a race. It would initiate one of the fiercest competi­
are designed to help. Even
The main emphasis is
tive struggles the country has ever seen among the powerful
in these cases, it is not tak­
placed upon the arrest o f
ing in those that are weak
banks in each of the districts for supremacy throughout the
bank failures. During the
and failing. I should not
nine year period June 30,
district.”
know how to draw a con­
1920, to July 1, 1929,
stitutional legislative pro­
about five thousand banks,
posal which wrould compel good bankers
nearly all of them in agricultural com­ effective from the standpoint o f the goal
to absorb weak and failing banks! Fur­
aimed at.
munities, closed their doors and tied up
ther, from the standpoint o f what is
deposits o f approximately $1,500,000,000.
administratively possible, the managers o f
Leaves out the Small Bank
(The average o f deposits is thus very
a great group-bank system can contem­
small for these failed banks, being only
T THE end o f 1929 there were in the plate with some equanimity the absorption
$300,000). The figures fo r the year 1929
United States 24,645 banks and o f sixty million dollars o f banking re­
show no decline in the rate o f failures
3,547 branches, or a total o f 28,192 bank­
sources in a dozen well organized banks
among these small banks.
ing offices. Of this total o f banking offices
in sizeable cities, when they would very
The proponents o f this widespread ex­ there were 6,353 banks and branches that
properly shrink from the task o f taking
tension o f branch banking outside the belonged to branch hanking systems and
over sixty millions o f banking resources
city o f the head office apparently intend chain or group banking systems or to both.
scattered among two hundred hanks in
to make use o f the recent rapid develop­
This leaves 21,839 hanking institutions very small towns.
ment o f group and chain banking, by that are definitely “ independent unit
adopting legislation to permit the groups banks.”
The overwhelming number of
Size of the Failed Banks
and chains to transform themselves into
our banks is thus outside o f chain-bank,
branch systems.
¡V
E R forty per cent o f the failed
group-bank or branch-bank systems. On
banks were situated in towns and
With much sympathy fo r the main pur­ the other hand, on the same date, the
pose which lies behind these proposals, branch, chain and group banking systems villages having a population o f less than
sincere proposals made by able men who had total loans and investments o f ap­ 500 persons. Over sixty per cent were
proximately thirty billion dollars, leaving in towns o f 1,000 people or less. Eighty
undoubtedly have the good o f the country
per cent were in towns o f 2,500 people
hank at heart and who undoubtedly have twenty-eight billion, five hundred millions
or less.
Ninety-two per cent o f the
a great deal o f knowledge o f country o f loans and investments fo r the 22,000
failures were in places having less than
hank conditions, I am, none the less, independent unit banks.

T


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Are W e Rushing Through
Signal I

A'

Northwestern Banker

June 1930

18

The amazing thing is that the country bank has come through as well as it has, with chain stores displacing local
merchants, and with country customers following the new paved roads into the larger cities.
10,000 people. O f the remaining eight
per cent o f the failures, a high percentage
was in very small banks in larger places.
From the standpoint o f capitalization,
sixty-three per cent o f the failures were
among banks having $25,000 capital or
less. Seventy-one per cent were in banks
having less than $50,000 capital, and
eighty-eight per cent among hanks having
less than $100,000 capital.
During the last nine years there were
no failures at all of banks having capital
o f two millions or more, and there were
only four failures among banks having
over one million capital.
Practically, it may be said that for
cities o f 10,000 or more people, and that
fo r banks with $100,000 capital or more,
there has been no problem o f sufficient
magnitude to justify extraordinary con­
cern, or to call for more than local at­
tention.
Certainly there is nothing in the ex­
perience o f the past nine years, as re­
vealed in the foregoing figures, to justify
a legislative revolution in our banking
situation, or to justify the creation o f
giant branch banking systems, with
enormous capital, ranging over “ trade
areas” which may equal or even exceed
Federal Reserve districts in size. Much
more moderate measures would apparent­
ly be indicated.
Causes of Bank Failures
HE first and foremost cause o f the
large number o f bank failures since
1920 is the great boom in agricultural
prices and land values before 1920, the
collapse o f agricultural prices and land
values following 1920, and the adverse
conditions in agricultural communities
which have since continued. The second
great cause is real estate speculation in
the period since 1920, in certain import­
ant sections o f the country, notably
Florida and some adjacent States.
This is strikingly evidenced by the geo­
graphical distribution o f the failures,
which are largely centered in four South­
eastern States, namely, Florida (123 fail­
ures), Georgia (305 failures), South Caro­
lina (191 failures), North Carolina (110
failures), and in a second group o f agri­

T

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June 1930

cultural States, namely, Minnesota (378
failures), Iowa (467 failures), Missouri
(246 failures), North Dakota (444 fail­
ures), South Dakota (315 failures),
Nebraska (307 failures), Kansas (194
failures), Montana (191 failures), Okla­
homa (227 failures), Texas (217 failures).
During this same period, all o f New
England had only twenty-six failures.
New York had only twelve failures, and
Ohio had only thirty-six. New Jersey had
none at all. The failures were concen­
trated, in other words, in the regions
which had been most affected by the agri­
cultural boom and collapse, and by the
real estate speculation in Florida and ad­
jacent States. This concentration o f the
problem in special areas again would
raise the question as to whether Federal
legislation, affecting banks all over the
country, is called for, or whether— in SO'
far as the matter calls for banking legis­
lation at all— it is not a matter fo r the
States most concerned, with such concur­
rent legislation on the part o f the Federal
government as would permit National
banks to have the same branch-banking
rights that State institutions have in these
States.
From the standpoint o f the contrast
between our unit hanking system and the
system o f branch banking, it may be ob­
served that the same grave sequence o f
events, namely, the war, the boom o f
1919-20 and the collapse o f 1920-21, which
undermined so many o f our small agri­
cultural banks, also undermined great
branch-banking systems in many parts o f
the world. These include a great bank in
Denmark, a great bank in Canada with
four hundred branches, the Banque Industrielle de Chine in China, with its
widespread branches and its power o f
note issue, and the Banca di Sconto in
Italy, with branches spread all over that
country. More recent troubles o f the
same sort, deferred consequences o f the
same causes, have occurred in Japan and
Austria. A n incomplete record shows,
also, fo r the United States, that 226 banks,
with deposits o f $102,000,000, belonging
to chain systems, failed during the period
we are considering. And it is further to>
be ohesrved that in all these American

agricultural States the great bulk o f the
unit banks, measured in resources, sur­
vived the shock, and that in every State
the majority o f the unit banks in number
stood intact.
The situation was very greatly aggra­
vated in many o f these States by the ex­
cessive number o f very small banks. No
community can possibly provide adequate
resources, competent officers, and exper­
ienced directors fo r one bank to every
750 o f its inhabitants as in North Dakota,
or to 1,400 as in Iowa. And the situation
in these States was not exceptional; on
the contrary, an excessive number o f hanks
have been established throughout those
sections o f the country that are mainly
devoted to agriculture.”
New Jersey’s total immunity from bank
failures in the past nine years is prob­
ably due in part to the fact that New
Jersey’s banking authorities are not overready to grant charters to new banks, un­
less there is real evidence that a new bank
is needed, and that the Federal Comptrol­
ler is influenced by the State policy when
granting National bank charters in that
State.
The situation was complicated further
fo r many small country banks by the with­
drawal o f an important source o f revenue
which they had formerly enjoyed, namely,
the making o f exchange charges on cheeks
drawn against them fo r which remittance
was expected in another place.
Their
checks, when presented over their count­
ers, they paid at par. But when they
were expected to make remittance to
other places, they very generally made a
liberal (and often excessive) “ exchange
charge,” which was an important source
o f revenue. The Federal Reserve Sys­
tem o f par collection o f checks has largely
wiped out this source o f revenue fo r very
small banks.
Again, the institutions chartered by the
Federal government fo r making mort­
gage loans reduced an important source o f
revenue which many o f these small banks
had, in acting as intermediary in the mak­
ing o f mortgage loans.
A t the same time these Federal farm
loan agencies brought into the agricul(Turn to page 38, please)

19

HOME NURSING FOR
B y ROSCOE MACY
HE professional Bank Doctor is
coming- to be a common phenomenon
in those sections which have suffered
bank troubles during the past few years.
He is likely to appear any morning, on
short notice, at the door of an institution
which is in failing health, to open up the
medicine kit containing his favorite rem­
edies and nostrums, and prescribe a course
o f treatment, usually remaining to see that
it is faithfully carried out. A s in the
case of any other profession, some bank
doctors are successful; others are the
merest quacks, who expect to accomplish
a cure by the laying on o f hands and the
repeating o f magic formulae.
Sometimes the patient attains a com­
plete recovery; other cases terminate in
lingering or sudden death. An operation
is frequently deemed advisable, and as in
the surgical profession, even a successful
operation occasionally results in the death
o f the patient, and the sad bereavement
o f its stockholders and depositors.
Some o f us have given deep thought to
the situation; realizing that the high cost
o f the services o f a good bank physician
places those services out o f the reach o f
many banks, we have worked out a sys­
tem o f home nursing and pathological
treatment, covering the more common
forms o f bank ailments, and the results o f
our study are now ready fo r publication.
Our suggestions fo r treatment o f the
commoner forms o f bank diseases are set
out below. In all cases, we advise con­
sultation with the old family bank doctor,
but if you cannot afford the services o f a
specialist, you may find assistance in re­
gaining your financial health through the
use o f the curative treatments we suggest.
Whether your oato bank is suffering from
fallen arches, vault weakness, float, house­
maid’s knee, sluggish circulation, anemia
o f the note-case, vice presidential flat feet,
floating checks before the eyes, shooting
pains, or a combination o f these common­
er disorders, it is our hope that you will
find relief through following one or all o f
the courses o f treatment we prescribe.

T

“ Pain in the Neck
E U RA LG IA : This disorder usually
takes the form o f a pain in the
neck. Quite frequently it may be traced
to the presence o f some foreign body on
your premises— a calendar salesmen, an
officious examiner, or an inquisitive stock­
holder.

N

Treatment: To bankers who feel this
invariable symptom— a pain in the neck—
we recommend the immediate use o f cold
applications, not upon the neck, but upon
the foreign body which is causing the

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trouble. Remember that the foreign body
must be expelled; i f the cold applications
don’t work, try vigorous massage with an
old automobile crank, or other nonpliable
instrument.
A M N E S IA : (Loss o f Memory) In its
most virulent form, this disease attacks
cashiers and other bank officials, who im­
mediately develop an inability to remem­
ber which money is their own and which
belongs to the bank. I f not checked, the
malady is likely to prove fatal to the
strongest institution. In its milder forms,
amnesia produces a tendency to forget
public funds interest payments, tax re­
mittances, and note due notices.
Fre­
quently the first symptoms noticed are out­
dated calendar pads, inactive clocks, tele­
phone calls from the county treasurer, and
the like.
Treatment: The virulent form o f am­
nesia calls for immediate amputation. The
milder cases will usually yield to such
homely remedies as red tourniquets on the
finger, or the point o f a pin, applied where
the trousers are thinnest.
E L E P H A N T IA S IS : This disease is
dangerous only when it attacks such sec­
tions o f the anatomy as Expense and
Other Real Estate accounts. Its germ,
when injected into Deposits or Undivided
Profits, forms a very beneficial serum for
the prevention and cure of many chronic
bank troubles.
Treatment: Any form o f heroic and

vigorous reducing exercise will ordinarily
cure the malevolent phase o f this disease,
and is likely at the same time to induce
the development of its positive, or benig­
nant phase.
IN SO M N IA : This disease, in a bank,
is highly contagious. When a bank officer
is attacked by it, the first symptoms are
usually an overdraft on his personal ac­
count, and the collection o f his salary in
advance. Unless checked at once, it is
likely to sweep through the force, and is
communicated eventually to depositors, in
which case it is almost invariably fatal.
Its manifestations are pathological, taking
the form, in most cases, o f a sense of ap­
proaching calamity; the mere sight o f
certain bacteria— such as bank inspectors,
or check-cashers— is sufficient to produce
a condition o f extreme nervousness, which
leads naturally to the mistreatment o f
applicants fo r credit.
Treatment: Bank insomnia is a disease
which must be checked in its incipiency, if
at all. The first victim o f the malady,
even though he be the Chairman o f the
Board, or Vice President in Charge o f
New Business, must be isolated and given
first aid. Have another officer o f equal
rank sing to him, or recite “ Touissant
L ’ Ouverture” in his immediate vicinity.
As soon as he is able to walk, fan him with
a hairbrush in the region o f his coat tail,
and tell him to go home and stay there.
IN D IG E S T IO N : This malady is ordiNorthwestern Banker

June 1930

20
narily induced by a condition o f faulty
elimination in the note-case.
Treatment: Unless the bank is growing*
rapidly, approximately as many notes
should come out o f its case each jmar as
go in.
The remedy fo r constipation
in the note-case, then, is the stimulation

of the processes o f elimination. I f a co­
pious perspiration is induced on the brow
o f the cashier or other officer in charge o f
collections, immediate improvement will
be noticed. This perspiratory condition
will naturally be communicated in the
course o f time to chronic debtors who come

Head o f W orld ’s Largest
Bank H olding Com pany
Retires

in contact with the case, and will result
in restored circulation, and the consequent
replacement o f the wornout tissues in the
Past Due file.
H E R N IA : (Rupture) This trouble is
commonly the result of some violent over­
exertion. Often the ill-advised banker,
fo r example, will try to carry too many
farmers, or to raise his deposits more
rapidly than his territory justifies; when
the strain becomes to violent, something
naturally has to bust. (Yes, Oswald, that’s
correct; it’s usually the bank.)
Treatment: A truss is advised fo r the
reducible hernia. This may be easily made
at home by anyone who is skillful at re­
ducing capital loans and eliminating all
depositors-by-mail except those who occa­
sionally mail checks instead o f notes, to
cover their overdrafts.
“ Chronic Irritations”

(See Cover Photo)

R

E T IR E M E N T as an executive of all companies in which he
has been an officer, marked the sixtieth birthday anniversary
of A. P. Giannini, founder of Transamerica Corporation— the

world’s largest bank holding company, last month.

W

H E N I turned over the presidency of the Bank of Italy to my
successor in 1924, I made the statement then that I would

retire as an active officer from all organizations with which I was
connected when I reached the age of 60,” said Giannini. “ While
I shall continue as a director of our various companies and possibly
go on the boards of others, as well as serve, without compensation,
as chairman of the advisory committee of Transamerica Corpora­
tion, I will hold no executive office. I am definitely off the pay
roll. This is the time, I think, to express my appreciation to our
stockholders, our customers, and to the members of the staff of our
various organizations— without whose generous and whole-hearted
cooperation the success of our undertakings would not have been
possible. W e have, beyond a doubt, the finest and most loyal
group of people in our institutions to be found anywhere in the
world.
ALSO want to thank the press for its fairness and courteous
treatment. In this connection, I can say that for more than 25
years, while I have been engaged in banking and financial activities,
I have always found the newspaper men friendly, ready to help,
and willing to keep inviolate every confidence I have given them.

I

A LL of the so-called ‘Giannini interests’ are now vested in
Transamerica Corporation and it is my hope that hereafter
they will be known as Transamerica interests and not Giannini in­
terests. The conduct of the affairs of all these companies will be
under the direction of Elisha Walker, and the other executives

CARLET F E V E R : This malignant
disease may fasten itself either upon
a member o f the force or a customer of
the bank. It is always traceable to some
condition which produces a chronic irri­
tation; hence its frequent occurrence in
the banking business.
Treatment: There is a great deal of
disagreement as to the preferable method
o f treatment for customers’ scarlet fever.
Some authorities advocate the setting up
o f a counter-irritant behind the grille, but
the generally accepted remedy, in the
words o f our staff physician, i s : “ Soft
soap thoroughly and treat with liberal ap­
plications o f soothing syrup.”
H A L IT O S IS :
The ravages o f this
dread disease continue to take their toll
in the ranks o f the customers o f some of
our best banks. It is probably more prev­
alent in the banks o f Italy and other gar­
lic-consuming countries than in our own
territory. However, no bank is immune.
Treatment: Alleviation o f this distress­
ing condition simmers down at last to the
question: Who shall wear the gas mask ?
Most banks find it simpler and less ex­
pensive to equip the teller than the de­
positor.
The foregoing list does not begin to
exhaust the category of bank diseases, but
our laboratories are short-handed and the
reports o f our chemists are as yet incom­
plete. It is probable, then, that another
chapter dealing with the intensely inter­
esting and informative results o f these re­
searches will be published later.

S

associated with him .”
U R IN G the time that Giannini has been at the head of his
great financial enterprises, he has never received salary from
more than one corporation at any time and has held office only in
those organizations for whose creation he has been responsible.

D
G

IA N N IN I will sail on the Mauretania from New York, June 11,
with Mrs. Giannini and their son, Y . D. Giannini, for a year’s

absence abroad.

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Jane 1930

The Criticism
A clergyman who rides to his church in
an auto received an anonymous letter call­
ing his attention to the fact that the Lord
never rode to church in a car. The clergy­
man read it from the pulpit and added:
“ I f the writer o f this letter will come
next Sunday properly saddled and bridled
I will be glad to follow the Lord’s example
and come to church as He entered Jerusa­
lem.”

21

F a r m s and f a r m i n g
W H A T is the most valuable part of the
farm ?
The instant answer o f a majority o f the
men from whom this question is asked is
that the fertile corn ground which will
produce fifty to eighty bushels an acre is
the most valuable.
Comes the alfalfa grower who tells o f
yields o f from two to five tons o f alfalfa
per acre.
But what o f the good blue grass pas­
ture? Many a cattle feeder in the corn
belt will tell you that his pasture makes
him more clear profit than any other part
o f the farm. For one thing, his invest­
ment in pasture is comparatively smaller
than in the arable fields.
Pasture must be used, o f course, to
show a profit. It takes thrifty cattle,
bought right and fed intelligently, to pay
dividends on pasture land. Not all feed­
ers favor turning cattle on pasture, o f
course, but many who finish their steers
in the feed lot, carry some feeders on pas­
ture during the summer months.
A canny old farmer who has amassed a
considerable portion o f this world’s goods
remarked to the writer not long ago that
“ a bit o f rough land is a blessing in dis­
guise because it makes a man keep some
livestock and no man can make a success
o f farming without cattle and hogs.”
IO W A 4-H CLUB GIRLS will meet at
Iowa State College on June 10th to 14th,
while the club boys will meet there the
following week on June 16th, 17th and
18th. Minnesota club boys and girls will
meet at the University o f Minnesota,
June 3d to 6th.

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B y C. A. CRAIG
Farm Editor
A CORN Y IE L D contest is a feature
o f the work of extension agronomists in
Minnesota this year and a determined
effort is being made to locate the highest
yielding strains so that they can be rec­
ommended to the farmers and the produc­
tion per acre thereby increased.
SOUTH D A K O T A had 112 crops clubs
fo r 4-H club members with 745 individ­
uals last year and enrollments for the cur­
rent year are showing a very healthy in­
terest in these projects. Last year the
state crops champion was Morrie Oien, o f
Minnehaha county, AA’ho, among other
things, produced forty bushels o f corn
to the acre in 1927, sixty bushels in 1928
and sixty-eight in 1929.
CORN BELT STATES are feeding
more cattle this year. The increase for
eleven corn belt states showed 3.4 per cent
more on feed on April 1st, as compared
with the same date a year ago. Iowa
showed an increase of 8 per cent, Ne­
braska figures were the same while Minne­
sota showed an increase o f 6 per cent
and South Dakota 10 per cent.
SUMMER FA L L O W IN G as a means
of controlling fields badly infested by
weeds is urged by extension agronomists
in the corn belt states. R. E. Johnston,
o f South Dakota, says that it is a mistake
to try to raise a crop this year on fields
that are too weedy and suggests that the

presence of Canada thistle, quack grass
and some o f the other more noxious Aveeds
might make it feasible to take the fields
out o f production fo r a year and eradicate
these pests.
M ID D LEW E STE RN STATES aren’t
Avorrying much because the 1930 census
is apparently shoAving a small decrease in
the number of people living on farms.
Farming, like industry, has made rapid
progress the last decade Avith the result
that more work per man is possible than
could possibly have been done in 1920.
In IoAva, for instance, where early indi­
cations are for a decrease o f 1 % to 2 per
cent in the farm population, there were
55,000 tractors on the farms o f the state
on January 1st, or one fo r every fourth
to fifth farm.
This was an increase o f
13 per cent over the previous year and
this spring is seeing an unprecedented
demand for tractors and poAver farming
implements dealers report.
All this can mean but one thing— that
the machine age is sweeping agriculture
and that the hired man o f yesterday has
been replaced by improved machinery.
Hired help has been plentiful throughout
the corn belt this spring.
It is likely that there Avill be no hue
and cry from the harvest fields this
summer and fall for men to help save the
AA-heat crop. An increasing volume o f the
small grain crop in the middle west and
southwest is being harvested by combines
and this means a reduction in the number
of men required for harvesting and thresh­
ing.
(Turn to page 66, please)
Northwestern Banker

Jane 1930

22

Northern Trust Company in
Home

The newly remodeled home of the Northern Trust Company of Chicago
HE enlarged and remodeled home o f
The Northern Trust Company, on the
northwest corner o f La Salle and
Monroe streets, was formally opened to the
public last month following construction
work which has occupied a year.
The opening marked the bank’s fourth
expansion in its four decades o f Chicago
service and came as Chicago was prepar­
ing for its “ Century o f Progress,” the
forerunner o f which, the W orld’s Pair in
1893, gave the then young Northern Trust
Company the foundation o f its foreign
business through its appointment as offi­
cial W orld’s Fair depository.

T

Two new floors, making a total o f six
and two lower levels, have been added to
the building and it has been remodeled
throughout in accordance with the most
modern ideas in bank construction. The
bank will occupy all floors so that it con­
tinues to be the only loop bank using its
entire building for its own business. The
new floors add 31,826 square feet o f space.
A feature o f the remodeled structure is
the incorporation o f the latest develop­
ments in noise control and the control of
atmospheric conditions.
Special sound absorbing ceilings which
shorten voice and machine ranges have
been installed throughout the building.
These, and a special desk spacing plan
based upon their effect, do away with the
necessity for private offices. On the bank­
ing floors, desks o f all officials are in the
open, making them easy o f access fo r cus­
tomers and permitting the bank to main­
tain its traditional close personal contacts
despite its increased size. The trust de­
partment, which always has been an im­
portant part of the bank’s business and
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June 1930

in which it is considered a pioneer since
it is credited with having written the first
insurance trust on March 18, 1891, also is
devoid o f private offices although a few
conference rooms are provided there.
Air throughout the building is supplied
by an “ artificial weather” machine. This
takes in the outside air, washes it in water,
filters it through oil, cools it or heats it,
humidifies it or de-humidifies it and turns
it out always at the proper temperature
and humidity for the best maintenance of
health and efficiency.
The machine
changes the air in the building completely
every 10 minutes and so perfect is its oper­
ation that it has permitted the construc­
tion o f entire rows o f offices as well as
three dining rooms entirely without win­
dows. The building is the only one in
Chicago completely equipped with such
apparatus.
As another means o f maintaining its
personal contacts, the bank has put into
effect the dual unit tellers’ cage system.
This permits tellers to both pay and re­
ceive to a limited number o f customers
divided into groups alphabetically and
allows each teller to know by a maximum
number of the persons with whom he deals.
New semilow type cages have been in­
stalled in the commercial banking depart­
ment on the second floor and in the sav­
ings department, which with the bond de­
partment and a tastefully decorated
women’s consultation room, now’ occupies
the first floor.
The third floor is devoted to personal
trusts and the fourth is given over to
offices and the dining rooms fo r directors,
officers and employes. The fifth and sixth
provide space for divisions o f the trust

and banking departments.
Three new
type high speed elevators for customers
and two more fo r employes give ready
communication between departments.
Solomon A. Smith, is the present presi­
dent o f the institution. He is a son o f
Byron L. Smith, w’ho founded the bank,
and a grandson o f Solomon A. Smith, Avho
was the Civil W ar president of Merchants’
Loan and Trust Company.
The Northern Trust Company opened
its doors for business August 12, 1889,
with three officers and four employes.
Today it employes over 500 persons. Its
directorate is composed of A. Watson
Armour, Sewell L. Avery, Albert B. Dick,
Jr., DeForest Hulburd, John T. Pirie,
Kersey Coates Reed, Edward L. Rverson,
Jr., Martin A. Ryerson, Walter Byron
Smith, John Stuart, Ezra J. Warner and
Mr. Smith. O f these, Martin Ryerson
was a member of the original board.
The Northern Trust Company’s history
has been one o f steady growth. A fter its
first year, it moved to the Chamber o f
Commerce building fo r additional space
and fo r the same reason moved back to
the Rookery in 1897, occupying a part
o f the ground and second floors.
It
bought the old Bryan Block on the site o f
its present home in 1904 and in 1906
moved into the building which it built
there.

SOLOMON A. SMITH
President, The Northern Trust Company

23

It Was Just a Mere Suggestion
but the

U RETY PAID IN FULL
HERE isn’t a bank in the state that
“ 2. Section 998 on the Banking Code o f
B y THE LEGAL EDITOR
appreciates old friends and cus­
this state is as follow s:
tomers more than we do. A t the
“ ‘Any surety on any overdue note may
same time, business is banking, every ap­
Please wire me at the Hartley House, St.
by a '“written notice require the holder
plication must be considered on its merits,
Louis.
thereof to forthwith commence suit
and from the standpoint o f safety only,”
Yours truly,
against the principal debtor, and if such
the jiresident o f the Popular Bank pointed
Elwood Merritt.
suit is not commenced within thirty days
out.
from the service o f such notice, then the
(Telegram)
“ I get you,” Elwood Merritt agreed,
surety shall be relieved from liability to
Elwood Merritt,
but there was a surly undertone beneath
the holder.’
Hartley House,
the velvet glove o f his glib and glowing
“ 3. Hatfield by his letter notified the
St. Louis.
conversation.
bank to start suit against Merritt— no
Note received— proceeds credited your
“ And if the security back o f your pro­
such suit has been started and over thirty
account today.
posal is ample, then we’d be pleased to
days have elapsed since the receipt o f
Popular Bank.
give it our favorable consideration.”
said notice by the bank.
“ Well, suppose I get Arthur H. Hat­
(Letter)
“ I will not rub it in by pointing out that
field to go on my note by way o f surety,
Popular Bank,
according to the admitted facts and the
bow’d it be?” demanded Merritt.
Dear S ir :
state law that I quoted for your benefit,
“ I f you can get Hatfield on your note
Re yours o f even date notifying me your bank has no action against Hatfield
it’s good for anything up to $10,000,”
that Elwood Merritt’s $4,000 note fell due that would not be laughed out o f any
replied the banker.
yesterday and is unpaid, and asking me
Court in this State.”
“ Well, I ’ll bring the note down this
to pay as surety. As you know, Merritt
Yours to hand, W est replied.
You
afternoon, or I may have to go to Deerlost some money on the Brankley contract,
have evidently overlooked the case o f
park to see Hatfield. H e’s
Glenn vs. Union Bank de­
to the new mill up there
cided by the Supreme
’‘Under the language of the statute the requirement
part o f the time. I f that’s
Court of Arkansas and
the case I ’ll probably go to
to sue must he u n co n d itio n a lsa id the Arkansas sú­
found in 233 S. W . re­
St. Louis to order my sup­
porter 789. I f not you’d
plem e court. ‘At contemplated a peremptory require­
plies on this Brankley con­
know that Hatfield’s letter
ment of the surely to the creditor to commence suit
tract, and in that case I ’ll
isn’t a legal notice, that
forthwith. This notice is merely advisory. It does not
mail the note to you from
making a suggestion isn’t
Deerpark.”
contain a demand nor requirement for the creditor
“ requiring.”
forthwith to commence suit. If he ( the creditor) wished
“ That’ll be quite satis­
Better come across and
factory, and as soon as the
save getting laughed out o f
to exonerate himself from liability he must give such
note reaches us with Hat­
court when you put in a
notice as to leave no option with the party notified
field’s signature thereon,
defense founded on Hat­
the proceeds will go to
field’s letter and the judge
your credit at once,” the banker assured
but he’s still got quite a lot o f plant
gets hold o f the Glenn case.
him, and from this point on the reader is
and machinery out to the works, and the
Yours truly,
referred to the following correspondence
bank’s got a lien on some o f it, too, at
’ W . B. West.
from the files o f the Popular Bank in a least Merritt hinted so at the one time.
The story ends here, as far as the
brown paper folder labelled “ Elwood
W hy don’t the bank take the stuff you’ve
Merritt file is concerned, but the bank
Merritt.”
got a lien on now, apply the value o f it
books show that Hatfield paid in full
(Letter)
to his note, and then sue in the Circuit
three days later, and the account was duly
Deerpark, Thursday,
Court and get a judgment fo r the balance?
“ closed.”
President,
Yours truly,
LEGAL NOTE : In the Glenn ease on
Popular Bank,
Arthur H. Hatfield.
which West relied, and Arkansas Statute
Populartown, Ark.
Whereupon the bank handed the note
contained a provision along the same lines
Dear Sir:
to
Harry West, the bank’s attorney, West
as laid down in the Hartley letter, and the
According to our conversation at the
wrote Hatfield, he handed the letter to
surety wrote a letter to the bank that held
bank yesterday, I am enclosing $4,000
J. R. Hartley, his attorney, and Hartley
the note, saying: “ My advice would be
note with Hatfield as surety. As I told
wrote West in the following terms :
for you to take legal steps to collect the
you, I am going on through St. Louis to
“ Mr. A. H. Hatfield has handed me
debt.” The bank did not sue the prin­
order the cement and steel for the Brank­
your letter o f recent date re the Merritt
cipal debtor within 30 days, and the surety
ley contract, and I ’ll want the note to go
note. You seem to have overlooked the
claimed that he was clear, but the decision
to my credit at once, fo r I ’ll be up in St.
was against him and in favor o f the bank,
Louis maybe three weeks and will be following significant fa cts:
giving’ checks fo r the stuff: I ’m buying
“ 1. Hatfield was merely a surety on the on the ground that the notice in question
that will get to Populartown before 1 do.
note— your own letter admits that.
(Turn to page 69, please)

T


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Federal Reserve Bank of St. Louis

Northwestern Banker

June 1930

24

Branch Banking for Country Towns
HE plan fo r financial service in
villages and hamlets too small fo r
profitable operation of an independ­
ent bank through establisment o f branches
by strong institutions located in coun­
ty seat towns or other population centers
is highly constructive and commend­
able, in the opinion o f C. T. Jaffray,
president o f the Soo Line, chairman o f the
board of the First Stock Bank Corpora­
tion and a director and former president
o f the First National Bank in Minne­
apolis.
The working out o f such a plan, Mr.
Jaffray declared, would be a great and
forward-looking step toward stabilizing
the banking business in the northwest and
assuring the people and business enter­
prises in small communities o f safe de­
positories fo r their funds, while also ex­
tending them whatever banking services
are needed. Had such a system o f branch
banks been in existence in Minnesota and
the other northwest states in 1920, the
ninth district would have had only a frac­
tion of the 1,400 or more bank failures
from which their people have suffered
during the last 10 years, he pointed out.

T

Towns Need Service
R. J A F F R A Y voiced hearty ap­
proval o f the suggestion made re­
cently by A. J. Yiegel, Minnesota commis-

M

C. T. JAFFRAY
sioner o f banks and one o f the members o f
the state commerce commission, who urged
that the state government authorize strong
banks to set up branches in nearby vil­
lages. Scores o f Minnesota communities
which need banking service have none
today, Commissioner Yeigel said. Many
o f them had banks which have been closed
in recent years.

“ Mr. Yeigel is working along correct
lines in his suggestion that branches o f
strong county seat banks be established in
communities that need banking facilities,”
Mr. Jaffray declared. “ He has gotten to
the heart of a very important subject.
“ The reason that banks have failed in
so many small towns and that these com­
munities are without banking service is
that they were not large enough to sup­
port banks on a basis of profitable opera­
tion. To be strong and to function as a
safe depository fo r its community, a bank
must be profitable.
“ But the little banks have lost two o f
their main sources o f revenue the last
few years. They no longer are allowed
to charge exchange in checks that their
customers send out o f town. The Federal
Reserve Bank requires that such checks
be remitted fo r at par. Also the small
country banks have been deprived o f their
profit from the carrying and the sale o f
farm mortgages. This land loan business
has been taken away from them by the
Federal Farm Loan Board, the State
Rural Credit Commissions and the Joint
Stock Land Banks.
W ould H elp Business
N M ANY instances, the business, avail­
able in their communities was not
sufficient to yield a profit, with the ex(Turn to page 69, please)

I

Walter E. Devlin to Write Special Series of Articles
on Bank Sales and Advertising for the
N O R T H W E S T E R N BAN K ER
TARTING with the July issue,
the Northwestern
Banker
is
happy to announce the publica­
tion of a series of a half dozen special
articles on bank sales and bank ad­
vertising by Walter E. Devlin, nation­
ally known writer, financial sales and
advertising counsel, president of Dev­
lin & Bennett, Inc., of Chicago, which
firm is now acting as Advertising and
Sales Counsel for the Wisconsin, In­
diana and Illinois Bankers Associa­
tions. Devlin and Bennett, since their
organization four and one-half years
ago, have served more than 3,000
banks in the United States and have
been particularly active in assisting
banks in the installation of service
charges.
Walter E. Devlin, president of the
company, was formerly associated

S

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Federal Reserve Bank of St. Louis

June 1930

with Lord, Thomas & Logan, one
of the largest advertising agencies in
the world and also spent many years
in the investment and financial field,
having at one time been associated
with a bank in a medium sized town,
so he has a very excellent understand­
ing of not only the banking business
but also the business of sales and ad­
vertising.
These articles will cover—
(1) Convincing the customer of the
values of the various services
sold by banks through adver­
tising and salesmanship, in­
cluding checking account, sav­
ings account, safe deposit box
and investment services.
(2) Cooperative advertising.
The
subject will be discussed from

(3)

(4)
(5)

(6)

the
standpoint
of
showing
banks they all have the same
thing to sell and they could
save considerable money by do­
ing a cooperative job rather
than to individually spend
money for newspaper advertis­
ing and direct mail.
How to sell and advertising
savings accounts in competition
with higher rate investments.
How to sell the value of cash
reserves to the public.
The value of the right kind of
copy, art and layout in adver­
tising.
The banker of tomorrow will
not only know the mechanics
of the banking business but it
will be necessary for him to be
a superlative salesman.

Snapped at the meeting of Group Six, Iowa Bankers Association, held May 12, at Indianola: Above, center (left to right)
N. E. Kelly, cashier, Altoona Savings Bank, newly elected secretary of Group Six; Eoscoe Macy, cashier, First State Bank,
Lynnville, new president, Group Six; L. A. Andrew, Iowa banking superintendent and C. C. Jacobsen, vice president, Security
National Bank, Sioux City. Second panel, left photo, Owen P. McDermott, of Carleton I). Bell Co., Des Moines; Harold C. Neu,
Hallgarten & Co.; Harold B. Eckey, Metcalf, Cowgill & Co., Des Moines; and Jack Sparks, Carleton I). Beh Co.; Second panel,
right photo, Van Vechten Shaffer, vice president, Cedar Eapids National Bank; Carl Boberts, cashier, Farmers State Bank,
Boone; Will Miller, vice president, National Bank of the Bepublic, Chicago; and Frank B. Yetter, vice president, American
Commercial and Savings Bank, Davenport; Center photo, a view of the Indianola American Legion Drum Corps in action; Next
panel, left photo, Clarence Diehl, vice president, Iowa-Des Moines National Bank and Trust Co.; Bobt. L. Leach, president, Adel
State Bank; N. P. Black, cashier, Perry State Bank; and Ivan O. Hasbrouck, cashier, Iowa State Bank, Jefferson. Eight
photo, Stoddard M. Eobinson, cashier, First National Bank, Indianola; Bobert Boot, of G. L. Ohrstrom Co., and Hugh G. Little,
cashier, First National Bank, Prairie City. Lower panel, left photo, Eobert Lough, manager, Bond Department, Drovers Na­
tional Bank, Chicago; Alden S. Bagnall, assistant cashier, Stockyards National Bank, Chicago; C. H. Stephenson, cashier, Bank­
ers Trust Co., Des Moines; E. E. Harris, First National Bank, Chicago; Carl Mesmer, assistant vice president, Bankers Trust
Co., Des Moines; Eight, photo, Don L. Berry, vice president, Worth Savings Bank, Indianola; Frank Warner, Secretary, Iowa
Bankers Association; and Will H. Lane, president, First National Bank, Indianola.

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Federal Reserve Bank of St. Louis

26

Above, left to right, first photo: (Snapped at the Northwood meeting) C. M. Dopier, Chicago bank
president, Worth County State Bank, Northwood; and A. S. Lund, vice president and cashier, First
Center, C. J. Wohlenberg, president, and Carl C. Wohlenberg, vice president, Holstein Savings Bank.
manager for the Continental Illinois Company; Frank Covert, assistant cashier, Drovers National Bank,
Sioux City, Metcalf, Cowgill & Co.

analysis expert; A. O. Rye,
National Bank, Northwood.
Right, Dave Mitchell, Iowa
Chicago; and Clint Varnum

Best Ever
2,500 i o w a
bankers attended the group meet­
ings throughout the state in the
two-week period from May 12th to 23rd
inclusive. This year showed one o f the
largest arid most enthusiastic series o f
meetings ever held by the Iowa Bankers
Association.
Starting with the meeting o f Group 6
at Indianola on May 12th, the meetings
followed continuously until the meeting
at Clinton on May 23rd, with the excep­
tion o f Saturday and Sunday, the 17th
and 18th.
Approximately 200 bankers attended
the meeting- of Group 6. Following the
morning registration and the conference
o f the officers o f the County Bankers A s­
sociation, the main program o f the meet­
ing was held with the principal addresses
by the Honorable J. W . Foster, o f Des
Moines and Clyde Doolittle, general coun­
sel of the Iowa-Des Moines National Bank
and Trust Company. The afternoon was
devoted to entertainment.

A

p p r o x im a t e l y

Group 7 held their meeting at Marengo
on May 13th. Approximately 230 bankers
registered during the morning session.
Professor M. Mortenson, head o f the
dairy department o f the State College at
Ames, Iowa, gave an interesting discus­
sion on the subject, “ Use More Butter.”
One o f the main points brought out by
Mr. Mortenson was that people o f the
United States are only using a small per­
centage of all dairy products that could
be consumed with proper education by
the dairy interests o f America. He sug­
gested as a possibility an advertising cam­
paign, national in scope, which would pro­
duce at an infinitesimal cost per pound
to the producer, an annual budget greater
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Federal Reserve Bank of St. Louis

June 1930

than that carried by most o f the adver­
tisers o f the nation.
During the afternoon session, Chas. E.
Miller, an Albia attorney, talked humor­
ously and seriously on the subject o f “ Our
Neighbors.” Other discussions were made
by W . G. C. Bagley, Mason City, presi­
dent o f the Iowa State Bankers Associa­
tion, by L. A. Andrew, and Secretary
Frank Warner.
Keosauqua and the banks o f Van Buren
county entertained Group 10 on W ed­
nesday, May 14th. A fter the morning
registration the 1 2 :00 o’clock luncheon
was served in the gymnasium o f the new
modern high school building.
The main address of the day was given
by Professor Carl E. Leib of Towa City,
who took fo r his subject, “ Banking and
Business— Looking Ahead.”
A t 3 :30 the bankers adjourned to LaceyKeosauqua State Park where golf and
bridge were enjoyed by the bankers and
their Avives.
The Lacey-Keosauqua Park is a large
tract of land that has been set aside by
the government as a recreation center for
southeastern Iowa. It contains possibly
the most rugged and natural beauty o f
any place within the state. A modern
higliAvav circles the entire tract, winding
over hills and into valleys, affording the
traveler frequent glimpses o f the Des
Moines river and the valleys through
which it flow's. When the landscaping
has been completed the park will unques­
tionably draw countless thousands o f
tourists to southeastern Iowa and historic
Keosauqua.
Although the meeting o f Group 9 at
Leon Avas not as largely attended as some

other sections o f the state, the bankers
o f that city had prepared a wonderful
program o f speeches and entertainment
for the visitors. The program committee
is to be congratulated upon the entertain­
ment program and the beautiful decora­
tions in the hall in Avhich the luncheon
was served.
The principal addresses o f the afternoon
Avere given by Professor L. G. Allbaugh
o f the Ames Agricultural College and by
P. C. Taff, Assistant Director, Extension
Division, o f the Ames Agricultural Col­
lege. Professor Allbaugh took fo r his
topic, “ Agricultural Outlook Informa­
tion,” and Mr. Taff, “ Soil Saving P ro­
gram.”
The afternoon Avas devoted to music,
readings, and a chalk talk, reports o f the
committees together Avith their resolutions,
and later in the afternoon a free movie
program at the Strand Theatre.
On Friday, May 16th, the members o f
Group 5 met in Sidney. T avo hundred
sixtv-five bankers registered at the morn­
ing session AA’hich was one o f the largest
gatherings in the entire state.
As at Leon, the bulk o f the program
Avas held during the morning. Mr. J. R.
Cain, Jr., vice president o f the Omaha
National Bank, gave the principal talk o f
the day. Mr. Cain refused to consider
his remarks as an address but talked more
or less informally “ over the desk,” as it
were, to the bankers present. He Avas
followed by President Bagley and Secre­
tary Warner.
The large attendance rather taxed the
facilities o f Sidney during the luncheon
but the ladies aaJio served the delicious
meal handled the serving in a most com­
mendable manner.

27

Above, snapped at the Mason City, Iowa, golf course, a group of care-free financiers, including (left to right) Leland J.
Andereck and Robert Root, of G. L. Ohrstrom & Co.; Fred H. Wray, vice president and cashier, the Pioneer National Bank of
Waterloo; Irvin B. Bleeker, cashier, the Rath State Exchange Bank of Ackley; and Clarence Diehl vice president, Iowa-Des Moines
National Bank and Trust Co. Center, Clifford Crowe and Carl Wohlenberg, Junior, both grandsons of C. J. Wohlenberg, of Holstein.
Right, George and ‘ ‘ Kewpie, ” the affable generals of the 1930 Iowa group meetings
Golfing and movies at the Strand
Theatre entertained the bankers during
the afternoon.
A fter a two-dav intermission the meet­
ings started again in Holstein on May
19th. Two hundred sixty-three bankers
registered at the morning session o f
Group 1.
The morning session was devoted to
banking business, meetings o f the county,
g’roup and state officers, and was held in
the East Room o f the Turner Hall. At
1 0 :30 the trust conference meeting was
called to order in the main hall by Ralph
B. Dalton, o f Le Mars, chairman o f Group
1. James Hart, o f the IoAva-Des Moines
National Bank, spoke on, “ Trust Depart­
ment Organization and Its Relation to
Its Clients.” Discussions followed, and
adjournment until 1 :30. Noonday lunch­
eon was served in the Turner Hall and also
the basement o f the Holstein Savings
Bank.
Chairman Dalton called the afternoon
meeting to order at the appointed hour.
The lecture on Russia, given by E. G.
Eox, was instructive and very interesting.
Mr. Fox is the chief electrical engineer o f
the Freyn Engineering Company o f Chi­
cago, which has a three hundred and fifty
million dollar contract with the Soviet
government to modernize present factories
and to install new plants. He lias been
in Russia for two years, part o f the time
accompanied by his wife, a daughter o f
Mr. and Mrs. C. J. Wohlenberg, and he
just arrived here from Russia on his an­
nual vacation. Mr. Fox positively knows
the present condition, and he says it is
certainly astonishing to see the Avonderful progress made the past few years.
The address by L. H. Cook of Des
Moines, chairman o f the State Board o f
Assessment and Review, closely held the
attention o f all present, especially the
bankers. Mr. Cook explained the pres­
ent tax situation as he finds it, and poli­

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Federal Reserve Bank of St. Louis

tics was totally absent from his entire re­
view o f present taxing problems.
Bankers and their wives from eleven
counties o f northwest IoAva, numbering
nearly 400, gathered at Spencer on May
20th to attend the meeting o f Group 2.
The morning was spent in registering
and getting acquainted. The presidents
and secretaries of the county associations
met at the Farmers Trust and Savings
Bank at 1 1 :00 o ’clock to discuss mutual
problems.
R. T. Pullen gave the address o f the
afternoon, taking fo r his subject “ Co­
operative Marketing o f Farm Produc­
tion.”
The afternoon was devoted to a pro­
gram at the Spencer Golf and Country
Club. Additional entertainment was fu r­
nished in the evening when a banquet Avas
given at 6 :30, followed by a musical pro­
gram and later a dance.
The address at the meeting o f Group 3
at NorthAvood on May 21st was given by
George J. Schaller, president o f the Citi­
zens First National Bank, Storm Lake.
He took for his subject, “ Finance and
Farming.” Other addresses Avere given
by Harold Y. Bull, cashier o f the First
National Bank at Mason City; C. M. D op­
ier, member o f the firm o f Edward R.
Burt & Company, Chicago; L. A. Andrew,
President Bagley, and Secretary Warner.
A banquet Avas held at 6 :30 in the
Northwood high school followed later in
the evening by a dance at NorthAvood
Music Hall.
The members o f Group 4 met in OelAvein on May 22nd. Herbert V. ProehnoAV o f the First National Bank o f Chi­
cago discussed the question o f “ Safe
Banking” in his address.
The speaker declared bankers could not
expect directors to direct intelligently if

they do not give these directors informa­
tion.
Speaking o f checking accounts, Mr.
ProchnoAV said the service charge on small
accounts should take into consideration
the activity o f the account. “ One indi­
vidual with a $50 account may write four
checks, another twenty checks,” he said,
and this should be given consideration.
About seven o f every ten accounts are
unprofitable to the bank, unless a service
charge is made, the speaker declared.
In closing, he advised the bankers to
put emphasis on quality rather than quan­
tity o f business; on profitableness rather
than on totals.
The final meeting, that o f Group 8, in
Clinton, on May 23rd, wound up the series.
The constructive program was about
equally divided between morning and
afternoon, the morning being devoted to
the business meetings and the afternoon
to the addresses. J. H. Hudson, o f the
Illinois Chamber o f Commerce, delivered
the main address.

As Seen From the Special
About 21 IoAA’a, and Chicago bankers
made the rounds o f the group meetings on
a special Pickwick-Greyhound bus char­
tered fo r that purpose. A definite time
schedule was carried out with minor ex­
ceptions.
“ George” the porter, Avho has been
making these trips Avith the bankers for
the last 10 years seemed to get a big
kick out o f the proceedings and was his
usual competent self in looking after the
luggage; mail, et cetera.

Clarence A. Diehl contributed much to
the enjoyment o f the trip by winning a
box of cigars at Marengo by most closely
guessing the number o f dollar bills in a
(Turn to page 76, please)
Northwestern Banker

Jane 1930

28

W ill Attend June Conventions

W. G. EDENS, Vice President
Central Trust Company of Illinois

O SOME people, June is a month
for brides— but to bankers of the
middle west it is a month for conven­
tions and scores o f bank officials New
York, Chicago, Minneapolis, Omaha and
other cities have already made their reser­
vations for the Iowa, Minnesota and
South Dakota conventions which take
place this month.

T

In this issue of the N orthwestern
B anker appear the likenesses o f a number
o f bank officials who will be in attendance
at the June conventions.

CHRIS J. HUSTON
Representing W. B. McMillan & Co.
Northwestern Banker

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Federal Reserve Bank of St. Louis

June 1930

ALDEN S. BAGNALL
Assistant Cashier, Stock Yards National
Bank, Chicago

From the Foreman-State National
Bank, o f Chicago, will come Basil I. Peter­
son, second vice president, who will at­
tend both the Minnesota and South
Dakota conventions. V. L. Bartling, sec­
ond vice president, will attend the Iowa
convention.
A notable delegation will represent the
Central Trust Company o f Illinois. W . G.
Edens, vice president and E. M. Wanger,
will attend the Iowa convention at Daven-

ROGER S. HUME,
Ass’t Vice President Northwestern
National Bank, Minneapolis

WILLIAM N. JOHNSON,
Ass’t Vice President Northwestern
National Bank, Minneapolis
port, while G. L. Fischer will be attending
the Minnesota meeting at St. Paul.
The Northwest Bancorporation, will, as
usual, have a large delegation at all the
meetings. The South Dakota, meeting at
Aberdeen, June 11-13, will be attended
by William E. Briggs, vice president and
Guy D. Combes, assistant cashier o f the
Northwestern National Bank. The Iowa
convention will see William N. Johnson,
assistant vice president o f the Northwest­
ern National Bank, doing the honors for

PRANK COVERT
Assistant Cashier Drovers National Bank,
Chicago


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29

One Investment That
Takes N o Watching
Business depressions may come and go— panics, wars, buyers’
strikes.
Good Iowa Municipal Bonds go right on paying their interest
regularly, no matter W H A T happens.
This is one of the reasons why municipal bonds are the ideal
investment for banks and their clients who want the utmost
in safety, coupled with substantial income.
Last year the Carleton D. Beh Company sold more than $12,000,000.00 in Municipal Bonds to banks, insurance companies,
institutions, and private investors. Our specialized facilities
in this field are particularly attractive to bank executives who
wish to purchase only the B E S T in Municipals. W rite for
latest list of recommended offerings— mailed on request with­
out obligation.
Note.— There are many attractive “ buys” in good
Municipals just at this time.

Carleton D. Beh
Investment Securities
Suite 518 Liberty Building

D ES M O IN E S , IO W A
Dial 4-8161

Northwestern Banker

June 1930

30

Meet Them at the Convention!

G. L. FISCHER
Central Trust Company of Illinois

the fh'm. At the Minnesota convention in
St. Paul, June 16-18, Robert E. Macgregor, vice president, William E. Briggs,
vice president, Roger S. Hume, assistant
vice president and William N. Johnson,
assistant vice president o f the Northwest­
ern National Bank, in addition to numer­
ous other Bancorporation officials will be
on hand.
Charles B. Mills, former Iowa banker
and now president o f the Midland Nation­
al Bank, o f Minneapolis, will be at the
Iowa convention to chat with his many

W. H. MILLER,
Vice President The National Bank of the
Republic, Chicago
Northwestern Banker

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Federal Reserve Bank of St. Louis

June 1930

ROBERT E. MACGREGOR,
Vice President Northwestern National
Bank, Minneapolis
friends. V. E. Hanson, vice president
and J. K. Cornelysen, assistant cashier,
will cover the South Dakota meeting for
this institution.
From thei Chatham Phenix National
Bank and Trust Company, New York
City, will come Robert P. Brewer, vice
president and Paul L. Hardesty, assistant
vice president, to attend both the Iowa
and Minnesota meetings. Mr. Hardesty,
as a former Chicago banker, will meet a

GUY D. COMBES,
Assistant Cashier Northwestern National
Bank, Minneapolis

BASIL I. PETERSON
Second Vice President, Foreman-State
National Bank, Chicago

host o f mid-western friends during his
convention trip.
G. L. Ohrstrom, well known New York
and Chicago investment house, is sending
salesmanager for its western territory,
Paul E. Lundquist, to attend the Iowa
convention. Mr. Lundquist was formerly
with the Northern Trust Company,
Chicago.
From the Drovers National Bank,
Chicago, tw7o inveterate travelers will
swroop dowm on the Iowra convention.

E. M. WANGER
Central Trust Company of Illinois


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Federal Reserve Bank of St. Louis

31

to Safeguard Your
Investments
The proper maintenance of your investment program is a
complex problem.

To assist you in obtaining the most favor­

able investment results for your bank and its customers,
Metcalf, Cowgill & Co. Inc., offer you the broad facilities for
research and the comprehensive investment experience avail­
able through this organization.
And in serving you, we are providing a service to your com­
munity as well.

When your funds are put to work in various

diversified industries and sound mid-western enterprises they
pro ide new employment and help to create new wealth.

Correspondence is invited
in regard to your
investment requirements

Northwestern Banker

June 1930

32

“ W e ll See You at the Convention

WILLIAM E. BRIGGS,
Vice President Northwestern National
Bank, Minneapolis

They are Frank Covert, assistant cashier
and George A. Malcolm, vice president.
These two gentlemen are old-timers at any
Iowa meeting.
From Omaha, John Changstrom, newly
elected vice president of the Omaha Na­
tional Bank, will attend both the Iowa
and South Dakota conventions.
The National Bank o f the Republic,
Chicago, will send two capable and well
known vice presidents, W . H. Miller, to
attend the Iowa convention and H. R.

Y. L. BARTLING
Second Vice President, Foreman-State
National Bank
Northwestern Banker

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Federal Reserve Bank of St. Louis

June 1930

P. L. WILLETT,
Assistant Secretary Central Hanover
Bank and Trust Co., New York

Drew7 to do the honors at the Minnesota
meeting.
Grover Rinehart and C. M. Nelson, vice
president and cashier, will represent the
Northern Trust Company o f Chicago, at
the IowTa meeting vdiile Fred A. Cuscaden,
vice president and Bayless W . French,
assistant cashier, will represent this in­
stitution at the Minnesota meeting.
The Stockyards National, o f Chicago,
as usual, will be most agreeably repre­

PAUL E. LUNDQUIST
Western Sales Manager, G. L.
Ohrstrom & Co.

H. R. DREW
Vice President National Bank of the
Republic, Chicago

sented by Alden S. Bagnall, assistant
cashier, at the Iowa convention.
The Central Hanover Bank and Trust
Company, o f New7 York, is sending A s­
sistant Secretary P. L. Willett, to attend
the Iowa meeting, with W . H. Suydam as
the firm’s representative at the Minnesota
convention. Mr. Suydam is vice president
o f the bank.
Chris J. Huston, newly appointed rep­
resentative fo r W . B. McMillan & Co., wrill
attend the Iowa convention at Davenport.

FRED A. CUSCADEN
Vice President, Northern Trust Co.
Chicago

33

Regular Reinvestment
A sound basis
fo r secondary reserve management
The chart below illustrates the course
o f annual average bond prices during
the past ten years and the average cost
o f bond holdings based upon a policy o f
regular investment
each year. Secondary

A Secondary Reserve structure
based upon specific requirements and
providing for regular reinvestment
year by year will incorporate a high
degree o f stability
and assure a satis­
factory income in accordance w ith the
trend o f lo n g term

Reserves constructed
to provide for bond
purchases regularly
each year during this

interest rates. It will
keep at a m inim um
the danger o f incur­
rin g drastic losses
fr o m m is ta k e s in

period have resulted
in an average cost o f
bonds held, substan­
tially below present
m arket prices. In ­
come return based on
average cost is also very satisfactory.
A n examination o f bond sales indi­
cates that bankers who attempted to
secure large speculative profits from
bonds were heavy purchasers during
the last stages o f the period o f rising
prices in 1927-1928. The portfolios
o f their banks naturally show a bond
cost above present market levels. This
indicated loss has seriously affected
earnings and the proper functioning
o f the Secondary Reserve Account.

judgment regarding
market movements.
It will assure the proper functioning
o f the reserve under practically all
circumstances.
For 37 years, A . G. Becker & Co.
has assisted banks in the construction
o f their reserves. Our experience has
been acquired through contact with
banks, large and small, in all parts o f
the country, during periods o f de­
pression and prosperity. This ex p e ­
rience is at your disposal at any time
without obligation to you.

A. G. Becker ô Co.
Sound Securities for Investment

100

S O U T H


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Federal Reserve Bank of St. Louis

L A

S A L L E

S T R E E T ,

C H I C A G O

*

54

P I N E

S T R E E T ,

N E W

Y O R K

Northwestern Banker

June 1930

34
ter were put to a vote of his laymen where
lie had been an active preacher before he
became a Bishop, our guess is that they
would vote to give him a clean bill o f
health because the chances are that 90
per cent o f them were or are in the
market.

F R A N K W A R N E R , secretary o f the
Iowa Bankers Association, tried out the
special motor bus plan this year fo r the
group meeting regulars and found this
wyas more convenient and economical than
using the special train. Of course the
boys didn’t have quite as many oppor­
tunities to sing the Stein song or pur­
chase cheese sandwiches at midnight as
they did have when the colored boys took
care o f them on the special train.
There is one thing sure about Frank
Warner— he is always trying to work out
the best plan fo r all concerned and maybe
next year he will decide that airplanes
will be the best mode o f conveyance.
GRANT M cPH E R R IN , president o f
the Central National Bank & Trust Com­
pany o f Des Moines, who stopped off in
New York for a visit after the executive
council meeting last month, told the story
which seems to be going the rounds of
Wall Street, that since some o f the big
mergers in New York they have so many
vice presidents now that they have to come
in the back door so people 'will not think
there is a run on the bank.
R IC H A R D W . H ILL, national secre­
tary o f the American Institute o f Bank­
ing, has been making addresses before the
chapters o f the A. I. B. throughout the
country and among other examples that
he uses o f men who have climbed from the
bottom to the top are John H. Puelicher,
president o f the Marshall & Illsley Bank
o f Milwaukee, who started in as a discount
clerk and rose to his present position,
and Rudolph S. Hecht, who started in as
foreign exchange clerk and is now presi­
dent o f the Hibernia Bank & Trust Com­
pany o f New Orleans.
Many other examples could be pointed
out o f bankers today who have climbed the
ladder o f success and have been helped by
their work in the American Institute of
Banking.
M. A. GRAETTIN G ER, secretary of
the Illinois Bankers Association, is having
a great deal o f attention drawn to his plan
o f having independent banks form them­
selves into voluntary chains and to sur­
render certain police powers to a central
office, but to retain absolute control over
their own business as long as it is prop­
erly conducted.
This is somewhat the same plan as has
been adopted by independent grocers in
their struggle with chain stores.
One financial writer commenting on this
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Federal Reserve Bank of St. Louis

June 1930

plan, said : ‘‘Nothing quite like this has
been proposed before. Such a plan o f
course faces many difficulties. The Illi­
nois bankers as a whole are definitely set
against chain, group and branch banking.
Whether they will go so far as to band
themselves into voluntary chains to pre­
vent themselves from being absorbed in­
voluntarily, is doubtful. Officials o f the
Illinois Association report, however, that
their project has been submitted to a num­
ber o f bankers and has been favorably
received.”
IF YOU T H IN K CHICAGO is such a
bad place in which to live, you should
read what the last issue of the Rotarian
said about this W indy City. The point o f
the whole matter is that the international
convention meets in Chicago this month
and so they are singing the praises o f the
big city.
Here is a sample of how they are dish­
ing up the adjectives and a pretty good
job o f it you must adm it:
“ Chicago! Metropolis o f youth and
power, blood relative o f every nation in
Europe, scion o f the Twentieth Century,
creative and impetuous, merges culture
with commerce, combining in towering
skyscrapers marts o f trade and temples
o f art and worship. Here live a people
restless, unsatisfied, exuberant—building
today and destroying tomorrow in order
to build anew— a people who have
achieved in the span o f a century a spa­
cious, beautiful community whose muse­
ums, galleries, scientific schools have
contributed to knowledge and happiness
and lessened human misery. Here is a
city o f great halls o f learning— a city
youthful and dominating, taking nothing
fo r granted— a city that could snap its
fingers at tradition and appoint as head
o f its world-renowned university a youth
o f thirty!”
B ISH O P JAM ES CANNON, JR., o f
Washington, D. C., and a member o f the
Methodist Episcopal Church South, is
being brought to account by the general
conference because of his activities in the
stock market.
The question the brethren will have to
decide is whether lie was speculating or
investing, and if he was investing they
certainly can have no right to call him to
account.
On the other hand, if he was deliber­
ately gambling and it can be proven that
lie was, that may be another story.
There is one thing sure that if the mat­

GEORGE E. ROBERTS, in speaking
o f the chain store situation in his last
bulletin, says, “ The inevitable competition
between chains is already limiting their
expansion and the capable ‘independent’
is no nearer extinction than he was
twenty years ago.”
The good independent merchant, like
the successful independent banker, will
always have a place in any well organized
community.
A. J. V EIG EL, state commissioner o f
banks o f Minnesota, in recent addresses
before Minnesota bankers, has been advo­
cating a law which he believes would im­
prove the present banking structure in
his state and would allow one branch bank
in a community which does not have an
existing bank, should that community de­
sire such a branch.
He emphasizes that a branch bank
could not be established except in a com­
munity without one. No bank could start
a branch more than 20 miles from the
main office.
Gross earnings in state banks have in­
creased materially in the last two years,
according to Mr. Veigel, as they were
$48.36 per $1,000 resources in 1928 as
compared with $63.10 in 1929.
Also he points out that there are 157
villages w7liich ten years ago had one or
more banks, which now have none and
that about half o f these should have some
banking service.
“ Loans on securities by commercial
banks,” according to the CONTINENTAL
ILLIN O IS B A N K AND TRUST COM­
PAN Y, “ during the past seven years out­
ran commercial loans more than five to
one and outdistanced deposits almost
three to one. I f this trend continues it
will involve changes in loaning technique,
in banking policies and management, per­
haps in the very structure of the Ameri­
can banking system.”
One thing is quite sure— that if Ameri­
can industries continue to grow as they
have in the past, there will be more and
more securities issued and that being the
case it stands to reason that loans on such
securities will have a very prominent
place in the future o f American banking.
FRA N C IS H. SISSON, vice president
o f the Guaranty Trust Company o f New
York, in an address before the Advertis­
ing Federation of America convention in
New York, in discussing how the banker
looks at advertising, expressed the view
that : “ In many fields the banker has dis-

35

'

J

V,

Ease in Money Stimulates
Bond Market
HE world-wide easing of credit and the down­
ward revision of the rediscount rates early in
May were extremely beneficial factors in the bond
market. The fact that cheap money is in sight for
some months at least promises a continuance of
stronger bond prices.
T

The steadily decreasing production of gold is having
its effect in a reduction in commodity prices through­
out the world. This should, in turn, result in con­
stantly higher prices for fixed income securities.
Bonds thrive in eras of easy money rates and low
commodity prices.
Iowa bankers who buy bonds find, among our
selected offerings, both the high quality and the di­
versification they require. Also, for many bankers
throughout the state, our service has proved of prac­
tical value. Investment inquiries invited, without
obligation. Also ask for our June bond list. Please
address our Burlington office.
j

W. D. Hanna and Company
BONDS

FOR

INVESTMENT

B u r lin g t o n , Iow a
Pioneer Bank Building, Waterloo

The Higley Building, Cedar Rapids

The Laurel Building, Muscatine

S

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Federal Reserve Bank of St. Louis

r
Northwestern Banker

June 1930

36
covered that the use o f advertising can­
not only develop new markets hut create
new industries and greater uses fo r the
old. In his own immediate field he has
had to revise his entire attitude toward
advertising as a business factor. He has
come to realize that whatever service it is
proper to perform in banking or else­
where it is equally proper to sell to those
who can use it, and that wherever human
need is met it is proper to make a human
presentation o f it.”
Advertising is a power and force which
is recognized by manufacturers and mer­
chants everywhere and bankers who are
alive and alert to make their institutions
the real success that they should be are
using this modern method o f salesmanship
to link up with their forward looking
program.

FRE D I. K EN T, chairman o f the
Commerce and Marine Commission o f the
American Bankers Association, in a re­
cent report indicates that “ During the
first three months o f 1929 securities issued
amounted to about two billion eight hun­
dred million dollars. The rights that had
to be taken up came to another billion and
a half, making a total o f over four billion
dollars in securities that had to be taken
up in three months. National income
available fo r the purchase o f securities
was about a billion eight hundred million
fo r the three months.
New securities
were being issued at a much greater rate
than we could absorb and it was time to
call a halt.”
Business and commerce are being re­
adjusted to a sounder and better plane
and our new period o f prosperity cer-

Putting more Telephones
in the Home

PRESEN T day thinking puts a
premium on convenience. More
and more people are discovering
that one telephone in the home is
not enough. Many homes now
have two or more, and in some
cases almost every room has its
own telephone or a connection
for one.
The scope of the Bell System
service is constantlyincreasing not
only beyond its present frontiers,
but within them. Long distance
lines now bring the most widely
separated parts of the United
States together. Radio ¡telephony

has brought Europe within speak­
ing distance. At the same time,
the urge for greater convenience
is constantly increasing the use of
the telephone in districts already
served.
The continuous and growing
demand for this service is a funda­
mental element in the security of
investment in the Bell System.
Equally if not more important are
the progressiveness of its manage­
ment and its conservative finan­
cial policy.
M a y zue send you a copy o f our
booklet, H ell Telephone Securities' ’ ?

BELL TELEPH O N E
S E C U R I T I E S C O . Inc.
1 9 5 Broadway, N ew York City

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Federal Reserve Bank of St. Louis

June 1930

tainly is developing on a better founda­
tion.
R. S. H ECH T, chairman o f the E co­
nomic Policy Commission o f the American
Bankers Association, in a recent report
expresses the opinion that the commission
“ does-’ not believe that so-called Trade
area’ branch banking’ is likely to gain the
support o f any large percentage o f the
banking fraternity.”
Governor Young o f the Federal Re­
serve Board, on the other hand, favors the
trade area branch banking and is opposed
to nation-wide branch banking at this
time.
The whole question is now being studied
very carefully by the banking and cur­
rency committee o f the House ; in fact, all
those who have testified so far before the
committee believe that whatever new de­
velopment comes in banking “ that there
will always be room fo r vigorous inde­
pendent unit banking competitors.”
GEORGE A. STARRIN G, secretary of
the South Dakota Bankers Association,
is getting so many advance reservations
fo r the big meeting at Aberdeen, June
11th to 13th, that he expects the boys
are going to have to sleep in the parks
and the beautiful women at the Y. W . C.
A., and he is looking fo r an attendance
o f 350 to 400.
As usual, George has a fine program
prepared and it will pay in dividends to
every banker who attends.
A. N. M A TH ER S, president o f the
Nebraska Bankers Association, in speak­
ing before the group meetings in his state
recently, pointed out that there had been
too many banks created in Nebraska and
this was the reason fo r whatever financial
difficulties had arisen in his state.
In closing his remarks, Mr. Mathers
said : “ Visionary politicians, unworkable
laws, too many banks, drastic deflation,
dishonesty and incompetency as serious
and threatening as they may appear at
times, can no more destroy the great sound
banking and financial structure o f the
state than periodical hail, drouth, or frost
can destroy Nebraska’s growing agricul­
tural and industrial progress.”
H A R R Y LEE, vice president o f the
Bank o f Long Prairie, lias been elected
president o f the Independent Bankers As­
sociation o f Minnesota.
The association has been organized “ to
represent the rights o f the independent
bankers and to preserve fo r this state the
independent local bank.”
J. M. Freeman, a director o f the Olivia
State Bank and lawyer by profession, in
addressing the first meeting o f the as­
sociation said : “ W e do not need groups
or chains to give the people better bank­
ing.
W e are doing that ourselves.
Branch banking will be a cold, crystalized,

37

OURCES of K n o w i n g
Time tested channels
of sound information
Information is reliable depending upon the reliability of its
source.

One of the advantages of age and size in tlie banking

business is the extensive facilities for knowing that come only
with time and broad activity. The American, through its intimate
friendships in all parts of the country, built up during three gen­
erations, values its connections as a great asset which it freely
shares with its correspondents.

AM ERICAN

C O M M E R C IA L
A N D SA V IN G S

BANK

DAVENPORT, IOWA

LET

H ELP

When you want accurate infor­
mation on any subject that
comes under the purview of
hanking, and want it quickly,
phone or wire us. It is likely
that we can get it for you
promptly, if we haven’t it on file.

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Federal Reserve Bank of St. Louis

Northwestern Banker

June 1930

38
scientific matter o f business. The remedy
I offer is the unification, the organization
o f the unit bankers o f the state fo r the
purpose o f maintaining their institutions
against the encroachment o f the branch
and chain banks.”
FRED A. CUSCADEN, vice president
o f the Northern Trust Company, Chicago,
has just sent out a very beautiful book
entitled, “ The Fourth Decade and the
Fourth Expansion,” which is an invita­
tion to the opening o f the newly enlarged
building o f the Northern Trust Company.
This is the fourth time since the organ­

ization over 40 years ago that the phys­
ical home o f the Northern Trust Company
has been expanded. Two complete floors
have been added and the company is in
better position than ever to take care o f
its increasing business.
I f you haven’t seen a copy o f this beau­
tiful booklet I am sure Mr. Cuscaden will
be glad to send you one.

Explaining It
Passenger: “ W hy are we so late ?”
The Porter: “ Well, sah, de train in
front is behind, and we was behind before
besides.”

D A IR Y
PRODUCTS

fo r the nation’s table . . .
By much more than a comfortable margin, Wisconsin
leads all other states in the value of its dairy products.
In 1925, 2,779 cheese factories and 599 creameries pro­
duced $209,260,384 worth of butter, cheese, condensed
and evaporated milk.
Wisconsin manufactures 75 %
of the American cheese, 91 % of the brick cheese and
83% of the Swiss cheese produced in the United States.
Bankers and business men wishing additional informa­
tion concerning the well-diversified industrial and
agricultural prosperity of Wisconsin are invited to con­
sult First Wisconsin officers at any time.

Are W e Rushing Through a Stop
Signal ?
(Continued from page 18)
tural communities an unaccustomed vol­
ume o f funds which were deposited with
the local banks at high rates o f interest,
and which the local banker felt obliged to
re-employ at high rates o f interest. Many
a small town banker, who was a good
banker when his loanable resources were
somewhat less than the borrowing de­
mands o f his good customers, and who
could make good loans when he could dis­
criminate among competing borrowers,
found himself to be a very poor banker
when he faced the unaccustomed problem
o f employing surplus funds. He was not
trained for that.
It may be added that the weil-meant
efforts of the Federal government to im­
prove the condition o f agriculture by
multiplying the facilities o f agricultural
credit have had as their main result a
great and excessive increase in the mort­
gage debt o f agriculture, without a com­
mensurate increase in the productiveness
o f agriculture, and with a consequent
narrowing o f the margin o f free income
and the percentage margin o f equity in
land, on the basis o f which the farmer
could ask his banker fo r credit.
Very especially has the position o f the
very small bank in villages been weak­
ened by the coming o f hard roads and
automobiles, which, in many places, have
largely destroyed the usefulness o f the
small local village, doing away with the
local merchant, the local mill, and the local
church, as well as the local banker, making
it possible fo r the people to do their busi­
ness and seek their social life in the county
seat and nearby larger cities. Industrial
consolidations, moreover, even where leav­
ing local factories in small places, have
very often taken away the banking busi­
ness which the local factory gave to the
local banker, and concentrated it in
larger places. The growth o f chain stores
has had a similar effect. The very small
bank has had a difficult time in recent
years, and the marvelous thing is, not that
so many have gone under, but rather that
such an enormous number have stood, and
have even prospered, despite these adverse
tendencies.
Diversification of Resources

Fir s t W is c o n s in
N a t io n a l Ba n k
MILWAUKEE
Unit oj Wisconsin Bankshares Corporation

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Federal Reserve Bank of St. Louis

June 1930

NE cause assigned fo r the failures
o f many small banks is that they
have been unable to diversify their re­
sources because located in a one-crop
district, whereas a great bank with
branches stretching over a whole Federal
Reserve district could accomplish this di­
versification. It is true that many small
banks have failed through lack o f diver­
sification o f their resources, but it is also
true that the majority o f small banks in
the same communities have survived be­
cause they have diversified their resources.

O

39

T he

W H IT E P H IL L IP S C O M P A N Y ,

In c .

IN V E S T M E N T B A N K E R S
DAVENPORT, IOWA

CHICAGO, ILLINOIS

June Investments
WE OWN AND OFFER, SUBJECT TO PRIOR SALE:
$ 1 0 4 ,0 0 0 4 y 2%

B enton C ounty, la ., R e fu n d in g -----------

5 -1 -1 9 3 3 -4 2

4 .1 5 %

5 4 .0 0 0 4 % %

Clinton, Iow a, F u n d in g-------------------------

1 1 -1 -1 9 3 3 -4 0

4 .2 0 %

4 4 .0 0 0 4 y 2%

C rom w ell, Iow a, S ch o o l------------------------

5 -1 -1 9 3 3 -5 0

4 .2 5 %

1 7 .0 0 0 5 %

Des M oin es, Iow a, F u n d in g-------------------

4 0 0 .0 0 0 4 y 2%

F ayette C ounty, la ., Prim ary R o a d -----

4 1 .0 0 0 4 y 2%

Frem ont C ounty, la., F u n d in g --------------

1 3 5 .0 0 0 4 y 2%

Franklin C ounty, la ., Prim ary R o a d —

1 6 .0 0 0 4 % %

G en eseo T w p ., T a m a C o., Ia., School

1 1 -1 -1 9 3 8
O p t.

4 .1 5 %

5 -1 -1 9 3 5

4 .2 5 %

1 1 -1 -1 9 3 7 -4 3
O p t.

R e f_______________________________________
1 0 .0 0 0 4 % % Sioux C ity, Iow a, R e fu n d in g ------------------

4 .2 5 %

6 -1 -1 9 4 6 -5 0

4 .3 0 %

1 -1 -1 9 3 8

4 .1 5 %

1 0 0 .0 0 0 4 y 2%

U n ion C ounty, la ., Prim ary R o a d _____

9 0 .0 0 0 5 % %

M ad iso n , N o. C arolina, S ch o o l_______

5 -1 -1 9 3 2 -5 2

5 .0 0 %

3 6 .0 0 0 5 %

C am p b ell, M o ., School D ist., N o. 7 —

2- 1 - 1 9 3 5 - 4 9

4 .8 0 %

3 0 .0 0 0 5 y 2%

C larion T w p ., Bureau C o., 111., R o a d _ _

7 -1 -1 9 3 5 -4 1

4 .8 0 %

2 0 .0 0 0 5 / 4 %

O a k w o o d T w p ., V erm illion C o., 111.,
R o a d _________ _________________________

1 2 -1 5 -1 9 3 6 -3 7

4 .7 0 %

F ayette C o., 111., (S t. E lm o ) Sch. Dist.
N o. 1 1 0 _________________________________

6 -1 -3 4 -4 0

4 .8 0 %

1 4 .0 0 0 6 %

2 4 .0 0 0 5 %

O p t.

5 -1 -1 9 3 5

4 .2 0 %

5 -1 -1 9 3 5

4 .2 5 %

M ed ia T w p ., Flenderson C o ., 111.,
S c h o o l__________________________________

7 -1 -1 9 3 3 -4 9

4 .6 5 %

5 1 .0 0 0 5 %

G illesp ie C ounty, T ex a s, R o a d _________

7 -8 -1 9 3 2 -6 6

4 .8 0 %

4 6 .0 0 0 5 %

L avaca C o ., T e x ., R oad Dist. N o. 1 ___

5 -1 5 -1 9 4 3 -5 9

5 .1 0 %

9 3 .0 0 0 5 %

L ubb ock C o ., T ex a s, Road _____________

3 -1 0 -1 9 3 2 -6 9

4 .8 0 %

C om p lete descriptive circulars on

the ab ove offerings will

be

glad ly furnished upon request

fW i i
yfeoj i

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Federal Reserve Bank of St. Louis

THE INVESTMENT
▼BANKING HOUSE O F SERVICE ▼
Northwestern Banker

June 1930

40
They have accomplished this diversifica­
tion by means o f their correspondent
relations with great banks in great cities.
They have refrained from putting all of
their resources into local loans, and have
placed part o f them, through their corres­
pondent bank, into open market commer­
cial paper, or readily marketable bonds,
or call loans on the Stock Exchange, or
acceptances, and deposit balances with
their correspondent bank to build up a
“ borrowing equity.”
When times o f
stress have come, they have thus had sec­
ondary reserves, and they have been able
to borrow from their correspondent banks
sums needed to tide them over seasonal
needs and emergencies.
Good banking
and diversification o f banking resources is
perfectly possible fo r a small bank in a

M

m

*

one-crop community. W e do not need
branch banking either fo r the purpose o f
securing diversification or fo r the pur­
pose o f bringing about a seasonal flow
from region to region. The system o f cor­
respondent banking relations has accom­
plished this fo r many decades, and good
bankers everywhere know how to do it.
The Remedies
SEE nothing in all o f this to call fo r
a radical change in Federal laws re­
garding branch banking. The problems
do not extend throughout the United
States. They are centered in particular
States. The problems do not relate to
institutions o f sufficient size to be beyond
the power o f each State to deal with fo r
itself.

I

s e n i o r

» H

i r e r s

have been recruited from every section
of the country. Wherever you go, you
will find some one of them not only
prominently known, but intim ately
knowing that section and its needs. We
are consequently able to offer you a sym­
pathetic understanding of your prob­
lems, however varied or complicated.
President

Louis G. K

Chairman o f the Hoard
Sam uel M

aufm an

cR oberts

First Vice-President
R ic h a r d

II. H ig g in s

Vice-Presidents

Charles W. Weston
Robert P. Brewer
James T . Monahan
Rollin C. Bortle

Elliott Debcvoise
Robert Roy
W allace T . Perkins
George R. Baker

Warren W. Lamb
Ernest H. Watson
Robert C. Brown
Young Kaufman

Vice-President and Cashier

Henry R. Johnston
Assistant Vice-Presidents

George N. Hartmann
Paul L. Hardesty

R e s o u r c e s M o r e Than

Arthur E. Boyd
Henry F. Corwin
J. Welldon Currie

M a in

Three H u n dred

149

M i l l i o n D o ll a r s

New

Northwestern Banker

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

June 1930

O ffic e
Bro adw ay
York

*A

Radical changes in the banking legisla­
tion o f a good many States are undoubt­
edly indicated. The minimum capital re­
quired fo r banking in many States is far
too small. There ought to he sweeping
consolidation movements among the small­
est hanks in many States. Many villages
which now have two or three struggling
hanks would he much better served hy
one strong hank. State legislation giving
the State hanking authorities power to
guide, and even to compel this in their
discretion, would he very desirable in cer­
tain States.
A limited extension o f branch banking
by State law would probably help the
situation in a good many States. The
National Bank A ct should be amended so
as to permit National banks to do in this
connection what the different States al­
low their State banks to do.
County-wide branch banking, branch
banking in groups o f counties, even, in
some cases, State-wide banking, or branch
banking centering about three or four
main cities o f the State, ought, in certain
States, to be permitted and encouraged.
There may even be one or two cases where
a State will feel itself so much in need o f
outside banking capital that it will wel­
come the branches o f powerful banks
whose head offices are in other States.
Mr. Platt, o f the Federal Reserve
Board, has made moderate proposals
along the line o f county-wide branch bank­
ing, having especially in mind the very
small country banks, which deserve very
careful study. Ambassador Charles G.
Dawes, when Comptroller o f the Currency,
in his Annual Report for the year 1898,
recommended that branch banking be au­
thorized in communities o f less than two
thousand inhabitants, since many o f such
communities were not able to support in­
dependent banks. Many such villages
would undoubtedly be better served by an
inexpensive office o f a strong bank, whose
head office is in a nearby county seat, than
they are by their local independent unit
bank which is not making profits and
which must charge very high rates for the
limited local loans it is able to make.
It is probable that legislation along this
line, authorizing banks in larger cities to
establish branches in outside communities
with ten thousand or less inhabitants, or
even with five thousand or less, would ac­
complish virtually everything, with respect
to the prevention o f small bank failures,
that branch banking could in any case
accomplish. A t the same time it would
avoid the grave evils that would come
from the sudden revolution in our general
banking system, and from the destruction
o f local financial independence, that the
larger program now under consideration
would involve.
Further, such a limitation would con­
centrate upon the communities most in
need o f help the attention o f the bankers
who are in favor o f such developments,

41
but wlio would be hunting bigger game
in larger cities if the whole field were
thrown open. Such legislation ought to
be drawn in such terms as will encourage
the organizers o f branch bank systems to
take over the existing banks, and to dis­
courage the starting o f new branch offices
in places where such action would merely
increase the difficulties o f existing small
banks. Permission to establish such new
branches, competing with existing banks,
ought not to be automatic, but should in­
volve some “ certificate o f convenience and
necessity” , to be issued by the authorities
only after hearings.
But the problem differs greatly in d if­
ferent States. The different State bank­
ers’ associations should take it up and
they should carry their proposed legisla­
tion to their State capitals, rather than to
Washington. The one piece o f legislation
needed at Washington would seem to he
that the National banks be allowed to
have branches in a given State on the
same terms that the State banks and trust
companies in that State are allowed to
have them.
Local Financial Independence
E A RE moving much too fast and
too far in the direction o f central­
ization. I f an evil arises, we rush to
Washington fo r a remedy which, even
if a good remedy fo r part o f the country,
is often ill adapted to the special needs
o f other parts o f the country, and which,
if a had remedy, makes another nation­
wide evil. It is far better that we should
use the machinery o f our forty-eight
States for social and economic experi­
ments. I f they work well, other States
may adopt them. I f they work well in
part, other States may modify them in
adopting them. I f the new measures are
good fo r some States and bad fo r others,
those that find them good may use them.
I f the remedies are definitely bad, as
guaranty of bank deposits proved to be,
we develop the fact by a relatively small
scale experiment, and the country as a
whole is saved. There is, fo r example,
little danger o f Federal legislation fo r the
guaranty o f bank deposits, but I should
not feel so sure o f this if the experience in
Oklahoma and Nebraska and elsewhere
had not already given us an object lesson
upon the point.
I should strongly oppose Federal legis­
lation which would force upon a State
which was unwilling to accept it the
branch bank system, and, above all, Fed­
eral legislation which would compel a
State to admit the branch o f a bank
chartered in another State against its will
and against its laws. Specialists in every
field, eager to bring about widespread
adoption o f their remedies and reforms,
are continually going to Congress to se­
cure Congressional legislation covering
matters which are properly matters o f
State concern. Congress is continually
giving attention to matters which ought

WITH YOUR BEST CUSTOMERS

W


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

EVERY C O N T A C T C O U N T S

In the districts indicated
on the map live the fami­
lies who are prominent in the civic, commercial and social life
of San Francisco.

It is from these families that banks attract

their best individual customers.

It is from these families that

the army of American travelers draws recruits. • Banks estab­
lish good contacts with these customers when they are purchas­
ing A. B. A. Cheques. They must come to the bank to buy the
Cheques and it is an opportune time to offer the facilities of
the bank for securities management, safe deposit, wills and trusts.
They are quick to see that the pleasure of their travels will
be increased if their affairs at home are properly managed in
their absence. • And this contact is continued,
for they will see the bank’s name on the
Cheques at least once a day while they are away.

A B

A

C H E Q U E S
CERTI FI ED

OFFICIAL

TRAVEL

CHEQUE

OF

AMERICAN

BANKERS

ASSOCIATION

Northwestern Banker

June 1930

42
to be handled piecemeal among the fortyeight States. Congress is overburdened
with measures o f this kind, and Washing­
ton has grown topheavy with bureaus for
administering such legislation.

A D D IN G
V A L U E

TO YOUR
EMBLEM

A knight’s shield offered him protection— also a bright
surface on which to emblazon his coat-of-arms that all
might know him and his reputation.
Your checks can serve you as modern shields, if they
are made on La Monte National Safety Paper. To your
customers, they offer security . . . they are safe. To you,
they afford a distinctive and colorful background for the
effective display of your name and emblem . . . a setting
that will convey a sense of your pride and progress . . .
a forceful link, too, in the advertising of your service.

W e need the States, They are a vital
part o f our political machinery, and we
must be content to see them make mistakes
occasionally, as part o f the price which
we must pay fo r a proper balance between
centralization and local self-government.
I f the choice were between an infallible
Congress and fallible State legislatures,
the issue might not be so clear, but Con­
gress can also make mistakes, and such
mistakes are more serious than those made
in a single State. The banker is not
merely a banker. He is also, and first of
all, a citizen. As a citizen, he may be
permitted to attach a higher importance
to the preservation o f the fundamentals
o f our Federal system o f government than
to technical points in banking legislation.
I believe in the general system o f local
financial independence. I am opposed to
having the bankers o f one city dominate
the banking o f another city. I believe
that this country ought to have in every
city several strong, independent financial
institutions interested in the local cornunity, and dealing as principals with the
banks o f other cities, rather than acting
merely as their agents. I believe that our
system of correspondent banks gives us,
in general, all the financial interdepend­
ence that we need, and that the services
which the correspondent bank in a great
city performs for the banker in a smaller
place make it unnecessary for him to
have the elaborate facilities which a great
bank has. The unit banking system has
gone to extremes with us in many States.
There are too many very small banks.
But correcting this excess o f the system
will leave our American banking system,
I believe, far better adapted to our needs
than the European system of a few great
banks with a multitude o f branches, with
all power centered in a few great financial
centers.

We should like to show you how your emblem would
look in La Monte National Safety Paper. If you will send
us a sample — from a letterhead or an advertisement —
we’ll gladly make up a sketch for you, with our compli­
ments. Or, if you have no individual emblem, we’ll originate
one for you, free of cost. George La Monte & Son, 61
Broadway, New York City.
L A
FREE — An unusual sample book

N A T I O N A L

of checks, F-14, made on La Monte
National Safety Paper.

Northwestern Banker

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

June 1930

F O R

M

O

N

T

E

S A F E T Y
C H E C K S

P A P E R

Parity of Banks
CANNOT sympathize with the view
that it is necessary to pass unsound
legislation fo r the purpose o f giving such
supremancy to the National banking sys­
tem over the State banking systems that
banks would be compelled to drop their
State charters and take out National
charters. It is now well demonstrated
that the Federal Reserve System does not
depend fo r its success and growth upon
the growth o f the National banking sys­
tem. Virtually all o f the great State
banks are members o f the Federal Re­
serve System. Seventy-five per cent o f the
commercial banks o f the country, meas­
ured in volume o f loans and investments,
are members o f the Federal Reserve Sys­
tem. The Federal Reserve System can at
any time dominate the money market,

I

43
which is dependent on Federal Reserve
credit for a high percentage o f its cash
reserves. Through the Federal Reserve
System, Federal supervision extends to
the great bulk o f the banking resources o f
the country at present.
The original purpose o f the National
banking system was to supply a uniform
bank note issue throughout the country,
and to make a market fo r the Civil W ar
Government bond issues. With the Fed­
eral Reserve Act and the Federal Reserve
Note, the National Bank Note has become
a matter o f relatively minor importance.
There is no need fo r artificial support of
the Government bond market. The Na­
tional banking system is important, and it
is desirable to maintain it. It has helped
set good banking standards throughout
the country. The Federal Comptroller’s
supervision and inspection o f banks is
better than State supervision and in­
spection o f banks in many States— not in
all. But the State banking systems are
also good systems, by and large. It is
thoroughly undesirable that great issues
of banking policy should be settled as a
mere incident to a competition between the
State and National banking systems.
A Grave Practical Danger
HE adoption o f the proposed Fed­
eral legislation authorizing National
banks to establish branches throughout

T

great “ trade areas” as wide as Federal
Reserve districts or even, in certain cases,
wider, would be like the firing o f the
starter’s pistol at a race. It would ini­
tiate one o f the fiercest competitive
struggles the country has ever seen among
the powerful banks in each of the districts
for supremancy throughout the district.
Many hasty and ill-considered consolida­
tions would be put through. Efficiency
would suffer. A great readjustment in
the relations of banks and business would
be necessary. It would mean competitive
bidding fo r the stocks o f the banks which
would be absorbed in the great branch
bank systems. It would mean an orgy
o f speculation in bank stocks. It would
bring into play the vigorous activity o f
promoters, not necessarily bankers or men
with capacity in bank administration, who
would buy up or obtain options upon
large numbers o f banks with a view to
selling them to competing great banks.
Those o f us who believe that the pri­
mary business o f a banker is banking
rather than bank-stock jobbing would not
welcome a situation o f this sort. Within
recent months a great many conservative
bankers have been saying that they
would dislike very much a competition o f
this sort, that they hope it will not be
forced upon them, but that if it is forced
upon them, they will, o f course, act to
protect their positions. I should think

PASS B O O K S
AND C HE C K
RE F L E CT THE S T AB I L I T Y OF

that legislative restraint, rather than legis­
lative encouragement, would be called for
by tendencies like these.

Wilfred Gehr Honored
W ilfred G. Gehr, mortgage loan expert
o f the Union Title Guarantee Company,
Inc., a division o f Insurance Securities
Company, attended a conference called by
the Chamber o f Commerce of the United
States fo r a discussion upon “ Aspects of
Realty Financing Relation to Small In­
vestments.”
This discussion took the form o f a
Round Table Conference and was held in
Washington, D. C. Mr. Gehr was one of
the three men in the United States selected
from the Mortgage Bankers Association
invited to attend this conference. The
other delegates selected were Thos. F.
Clark o f New Haven, Connecticut, and
Walter Williams o f Seattle, Washington.
Mr. Gehr was selected to bring to the dis­
cussion his wide and varied experience in
home financing.

Dangers of tlie Night
The doctor told Alias Jones not to stay
out late nights.
“ You think the night air is bad fo r me,
D oc?”
“ No,” said the physician, “ it isn’t that.
It’s the excitement after getting home that
hurts you.”

BOOKS
SHOULD
YOUR S E R V I C E . . .

Y o u r b a n k i n g h o m e w a s d e s ig n e d t o c r e a t e a n im m e d i a t e im p r e s s io n o f
d i g n i t y , e ffic ie n c y , s e c u r i t y . Y o u e m p l o y e d t h e fin e s t a r c h it e c t a v a il a b le . Y o u
w o r k e d o u t e v e r y d e t a i l w it h h i m . G o o d b u s in e s s p s y c h o l o g y . . . . A r e y o u
e q u a l l y c a r e f u l in p la n n in g t h e p a s s b o o k s a n d c h e c k b o o k s t h a t r e p r e s e n t y o u '!
M a n y d e p o s i t o r s s e ld o m see t h e b a n k w it h w h ic h t h e y d o b u s in e s s . But they
I n t i m e , t o t h e in d iv i d u a l , t h o s e b o o k s
b e c o m e t h e m e a s u r e o f y o u r s e r v ic e .

use their check books almost every day!

T h e T o d d C o m p a n y h a s d e v e lo p e d a lu x u r io u s lin e o f p a s s b o o k s a n d c h e c k
c o v e r s t h a t w ill e n h a n c e t h e p r e s t ig e o f any b a n k . C a lle d A n t i q u e M o o r i s h ,
t h e y c lo s e ly s im u la t e t h e ric h c a r v e d le a t h e r o f a n c ie n t M o o r i s h c r a f t s m e n .
T h e y a r e s t u r d y , fle x ib le a n d u n u s u a ll y g o o d -lo o k in g . T h e y w ill e n d u r e ro u g h
h a n d lin g in d e fi n it e ly . T h e y a r e m o is t u r e -p r o o f. E v e n e m b o s s e d in g o ld w it h
y o u r d is t in g u is h in g e m b le m , t h e y c o s t li t t le , i f a n y , m o r e t h a n t h e o r d in a r y
p ro d u c t.
A n t i q u e M o o r i s h is m a d e in m a n y s t y l e s a n d s iz e s . S o m e o f t h e m a r e il lu s ­
t r a t e d a t t h e l e f t . B u t b la c k a n d w h it e c a n n o t s u g g e s t th e ir fe e l a n d q u a l i t y
o r t h e b e a u t y o f th e ir v a r ie d c o lo r s . S e e t h o s e th i n g s f o r y o u r s e lf . U s e t h e
c o u p o n b e lo w .
T h e T o d d C o m p a n y . Bankers’ Supply Division. B o s t o n , B r o o k l y n , R o c h e s t e r ,
B u ff a lo , C h ic a g o , S t . P a u l, D e s M o i n e s , B i r m in g h a m , D a l l a s , D e n v e r , S p o k a n e .

T H E T O D D C O M P A N Y , B ankers’ S u p p ly D ivision, 1149 University Ave., Rochester, N. Y.
Please send me complete information about Antique Moorish.
6-30
N am e o f B a nk __________________________________________________________________________ — .
N am e o j Officer ____________________________________________ :-------------------------------------------------Street ___________________________________________________________________________________ ___
Town ______________________________________________ State-------------------------------------------------------

TODD
r

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Federal Reserve Bank of St. Louis

SYSTEM

OF

CHECK

PROTECTION
■
Northwestern Banker

June 1930

44

M is s o u r i-K a n s a s P ip e
L in e C o m p a n y
Company and Business

Missouri-Kansas Pipe Line Company is a complete unit in the natural
gas industry, being engaged in the production, purchase, transportation
and distribution of natural gas. Natural gas is supplied under long term contracts to public utility and
industrial companies and under exclusive franchises to municipalities.

Properties The Company and its subsidiaries control prop­
erties geographically located so as to make it the
logical source of supply of some of the richest domestic and
industrial markets of the country.
N a tu ra l G as
R eserves

The Company owns or controls the natural gas
output on 410,385 acres. Competent engineers
have estimated the natural gas reserves on the
acreage of the Company to be in excess of 1,500
billion cubic feet— a volume sufficient to supply
markets 10 times the Company’s present gas sales.

P ip e L in e
T ra n s m is s io n
S ystem

Exclusive of lines now under construction, the
Company with its subsidiaries owns and oper­
ates 796 miles of modern pipe line together with
necessary rights of way and compressor stations.

P ro d u cin g
W ells

The Company, with its subsidiaries, controls
1,809 producing gas and oil wells. Intensive
development of valuable oil leases should result
in substantial increase in production and revenues.

Capitalization

The Company has a strong capital struc­
ture. It has no outstanding notes, bonds
or preferred stocks. Sole ownership resides in the Common
stockholders, and all earnings are available for Common
Stock dividends.

Dividends

The Company has
established aliberal
policy of enabling stockholders to
share in its growth. Dividends of
2/^ % in stock have been paid
regularly since July,
19 2 9 —
equivalent to an annual stock
dividend of 1 0 % .

Future

Missouri-Kansas Pipe
Line Company has an
expansion program of tremendous
scope— a program which will
easily quadruple the size of the
company in the next year. Note
the news item to the right which
forecasts the building of an enorm­
ous pipeline, which will immediate­
ly double the pipeline mileage of
the company. This is the first of a
series of more important announce­
ments to come.

$ 1

Record of
Growth

Since its inception in M ay, 1928, the Cornpany’s pipe line transmission system lias been
increased from 113 miles to over 796 miles.
Gas acreage has been increased from 60,000 acres to over
410,000 acres. For the 12 months ending December 31, 1929,
the Company’s gas sales increased 3 5 0 % over 1928. Sales for
January, February and March, 1930, were largest of any
quarter in the Company’s history.

The Last
Five M onths

From November 30, 1929, to March 31,
1930, total assets of Missouri-Kansas Pipe
Line Company increased from $5,582,503.16
to $20,030,735.72, or 258 %.

In the same period surplus increased from $3,151,933.14 to
$14,042,102.73— an increase of 345% .
Ratio of current assets to current liability increased from 3 to
1 on November 30th to 55 to 1 on March 31st— an increase
of 1400%.
Cash on hand and marketable securities increased from $462,978,88 on November 30th to $11,696,550.73— an increase of
2426 %. This does not take into consideration $737,000 00 due
on partial payments for stock purchased which represents cur­
rent cash collections of over $100,000.00 a month. Properties
plants and leaseholds have been
acquired increasing such invest­
5 ,0 0 0 ,0 0 0
ments from $3,845,357.49 to $7,065,122.92— an increase of 8 3 %

P IP E L IN E O R D E R

Pittsburgh, Pa., April 28.—05V -1
The
t ! Miseouri-Konsas Pipe Line company
1 1has placed an order “ estimated at
1 j $15,000,000 " for manufacture of pipe
,{with the National Tube company
here, J. J. Kennedy, general manager
o f sales of National Tube, announced
tonight.
Kennedy said that any announee{ ment as to reports that the order Was
|for a Texas to Minneapolis gas line
would have to come from the offices
o f the Missouri-Kansas-Pipe Line com' pany.
I He said the order called for 375
miles o f 24 Inch pipe, 350 miles of 22
inch pipe, and numerous lateral pipes
of varying sizes.
_______

I

(These figures represent book
value as shown by ledger ac­
counts and do not give effect to the
considerable increases in ac­
tual value that have taken place
in the development of various
properties.)

Conclusion

The above analy­
sis shows that
Missouri-Kansas Pipe Line Com­
pany, a complete unit in the nat­
ural gas industry, has a substan­
tial foundation with a program
of development which will make it
one of the five largest com­
panies in the field. Naturally the
common stockholders will be re­
warded with substantial profits as
this program comes into accuality.

Reprint from Chicago Tribune, April 29th

We suggest the im m ediate purchase of this Stock a t the m arket

M a t t h e w s &> L e w i s C o .
Investment Securities
231 South La Salle Street

Northwestern Banker

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

C H IC A G O

Telephone Central 6 5 5 6

The statements made herein are correct to our knowledge and belief, but are given without any liability on our part.

June 1930

45

Bonds and Investments

Keep Your Losses Down if You
W ant Profit from Bonds
is one o f the things we find it most difficult
HE old theory o f banking was that
By LESLIE N E W TO N
to contend with. Sell on the first signs
the local needs o f each community
President,
Investors’
Econom ic
Service,
o f weakness, no matter what the results,
should be taken care o f before any
Milwaukee
when the cloud is no bigger than a man’s
investments were placed outside. It has
hand; sell all the way down, so long as the
taken some hard knocks to cause us to
realize that, however good this may have that, “ It is not so much what you make, trend o f the borrower is toward further
weakness; don’t buy a declining issue
as what you don’t lose, that counts.”
been fo r the community, it was not so
good for the banks themselves. The essen­ Every successful banker knows and fo l­ until you know what has caused the de­
cline, and the bottom is safely passed;
W e cannot
tial requisite o f any bank is that it shall lows that basic principle.
and don’t try to average down on pur­
keep sufficiently liquid to meet any un­ state strongly enough that the secret o f
successful bond investment also is to pre­ chases until there are definite signs of im­
expected demands. Except fo r collateral
provement.
vent losses. The more experience you
loans protected by liquid issues, most local
Another major source of large losses
loans are essentially non-liquid. W e be­ have, the more will you be driven inevi­
tably to this conclusion. In our work we in bonds is not having an investment
lieve, therefore, that fo r a bank to have
see scores o f bond lists, and we have yet policy. Most o f us put our funds into
outside investments should not be at all
bonds according to what we are offered,
a defensive affair, but that it is an essen­ to find one where this did not apply.
rather than according to what we should
There are many ways o f increasing safely
tial o f sound banking.
have. There is no more essential policy
the return from a bank’s bond account,
Commercial paper, up to a few years
but none o f them are o f any importance o f investment than that of adequate di­
ago, was deservedly considered the best
fo r a bank’s surplus funds, but commer­ compared with aiming first at preventing versification. F or your bank there is
some fairly certain percentage that you
cial paper today is neither so safe, profit­ losses.
Of primary consideration, therefore, is should hold o f utilities, rails, foreigns,
able, or practical as it was. Rates are
and industrials, and o f the various ma­
not only disappointingly low, but com­ the rate o f return that one should aim for.
There are extremes in this as in anything turities. When one has funds for in­
paratively few offerings are available, and
else. One may aim fo r only the highest vestment, the very first question should
they are largely o f the weaker companies.
be “ What particular type
Bankers Acceptances are
or maturity should I look
not so widely used in this
“ I hope this truth will stick with you and never be forgotten
for with these funds ?”
section o f the country, and
Lack o f this essential p ol­
— ‘The secret of a profitable bond account is to prevent
at 2% per cent they are
icy results in over-invest­
far from attractive. The
losses’ !”
ment in certain types or
extraordinarily high call
maturities that render an
money rates o f last year
account
vulnerable
to unexpected condi­
grade
issues,
thus
preventing
losses,
and
are now down to their more accustomed
three per cent. Bonds have become, there­ free the management from criticism be­ tions, and keep it from being the bulwark
o f protection that it might just as well
cause o f losses, but at a cost to the fund
fore, the most satisfactory medium fo r a
offer your bank.
bank’s outside investments, and our dis­ that is high. The other extreme is to aim
consistently at high yields, endeavoring
cussion centers around them.
The Industry Trend
to see how weak an issue one can buy that
Different Conditions
ND
here
is a fact which will always
will still be paid at maturity. There is
stand you in good stead in judging
N H OLDING bonds, a banker is at
a middle ground which marks successful
an issue. There is scarcely any other fac­
once confronted with wholly different
investment, where too great risk is not as­
tor o f as great, importance as the trend
conditions. He can keep intimate track
sumed or too low yields accepted, but
o f how his local borrowers are getting
satisfactory security is obtained in com­ o f the industry o f which it is a part. I f
an industry is over crowded, and there is
along, but in buying a bond he makes a bination with a reasonable yield. Figure
a lessening demand fo r its products, even
long-term loan to a distant borrower,
out fo r yourself, some time, how much the
whose progress is not automatically market loss on some o f your issues has the best in the industry cannot operate
brought to his attention. He is asked to
cut down the yield promised. Many times very profitably, and almost all o f the issues
in that industry should be avoided. If,
purchase on what is sometimes an absurd
a bank would have been much better off
on the other hand, the industry is meeting
lack o f information about it, and it is
to have invested only in fou r per cent
with expanding demand and more favor­
presented by some of the best salesmen yields.
able conditions, even the weaker concerns
in the world, so that he more often makes
Must Take Necessary Loss
will be able to operate profitably. Gen­
his loan to the distant borrower as a re­
sult o f this salesmanship, than from a cold
SECOND major sources o f unsatis­ erally speaking, we would prefer the
weaker issues in an improving industry,
factory results from a bond account
analysis o f the loan. W e shall attempt
to the stronger issues in one which is go­
to cover some o f the factors involved,
is in unwillingness to take a loss. This
ing down-hill.
keeps one from selling when weakness
and principles that we have found o f
So much fo r the question o f losses due
definite, practical application.
first appears, and results in having to ac­
It has been said o f successful banking
cept an occasional very heavy loss. This to the individual borrowers. There are

T

A

I


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Federal Reserve Bank of St. Louis

A

Northwestern Banker

June 1930

46

also the losses due to broad economic
changes, such as we all experienced be­
tween the early part o f 1928 and N o­
vember, 1929. I f one can tell whether
conditions are working toward lower
money rates or higher, he can protect
himself by holding principally shorttermed issues when money rates are tend­
ing- to increase, and longer-termed issues
when money rates are tending to decline.
The difficulty, o f course, is knowing just
what period one is in. It is our opinion
that the long-term trend of bonds is
toward somewhat higher levels. W e base
this primarily upon the relationship which
bond prices bear to commodity prices,

that o f moving inversely. We believe that
we are in fo r some years yet o f declining
commodity prices. We do not believe one
should be much surprised at the declines
we have had thus far in 1930, because
during this period, the long-term trend
toward lower commodity prices was sup­
plemented by the short-term trend result­
ing from declining business activity. Our
declining gold production, the increasing
production o f commodities o f all sorts,
and such data as history gives us, all
point to declining commodity prices over
a period o f years.
This should mean
higher prices fo r bonds in time.
Temporarily, however, we believe the

Thumb M ethods
hove no place
• in determining the proportion of a bank's resources that
should be held in loans and discounts, in cash, in bonds,
in commercial paper or any other valid asset
These ratios are vital to the bank’s prof­
itable operation and to the quality of
service which it gives to its commu­
nity. They must be decided according
to such variable factors as local loan and
credit conditions and the character and
average duration of the bank’s deposits.
Whether large or small in ratio to
resources, the bank’s secondary reserve
o f bonds should be built with a view to
sound security, broad diversification,
and adequate yield, rather than to capi­
tal profits. It should likewise include a
liquid revolving fund o f bonds o f early
maturity, sufficient to meet emergency
demands that may not be provided for
by the primary reserve o f cash and Trea-

sury Certificates or other quick paper.
In assuring proper selection of secu­
rities and a satisfactory relation between
the secondary reserve and the bank’s
other resources, the services o f an ex­
perienced investment house can be of
real value. The accumulated knowledge
of banking requirements gained by such
an investment house in serving thou­
sands o f institutions brings to bear on
the individual problem a wealth of
practical information.
Our broad experience in preparing
detailed bond reserve accounts is avail­
able to every banker. Write today to our
nearest office for the useful folder,Sound
Investment P ra cticefor the Com m ercialB ank.

HALSEY, INCORPORATED
STUART & CO.
C H I C A G O , 201 South La Salle St.
AND

THE PR O G R A M
T H A T DOES M O R E

PRINCIPAL

CITIES

Every Wednesday evening thousands increase their knowledge
of sound investment by listening to the Old Counsellor on the
Halsey, Stuart & Co. program. Broadcast over a Coast to Coast
chain of 3 7 stations associated with National Broadcasting Co.

THAN
E N TERTAIN
8

OTHER

NE W YORK, 35 Wall St.

P. M. Eastern Standard Time
7 P. M. Central Standard Time
6 P. M. Mountain Standard Time
5 P. M. Pacific Standard Time
Daylight Saving Time one hour later

B O N D S
Northwestern Banker

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

T O

F I T

June 1930

T H E

I N V E S T O R

trend is in the opposite direction, much
propaganda to the contrary. Money rates
have been made unduly low in this coun­
try, we believe, because of the admin­
istration’s desire to stimulate business,
just as they were made unnecessarily high
last year because o f the wish to curb
speculation. We believe that business is
working out its normal reaction, and that
by the fourth quarter o f this year, it will
be comparing favorably with last year.
We believe that this will result in higher
prices for stocks next fall than now pre­
vail, and we might easily have a period
o f run-away speculation again. Improve­
ment in business would obviate the neces­
sity of extremely low money rates, and
there might again be the desire to curb
speculation by raising them. The public
is still stock minded. New offerings are
coming along in large amounts whenever
the bond market shows much strength.
W e believe, therefore, that these factors
point to somewhat lower bond prices next
fall than now prevail. At least, we are
urging our clients to be on the safe side
by giving principal attention at this time
to short-term issues, and to those which
appear to offer exceptional combinations
o f yield and security, but letting the other
fellow hold the low-yielding, long term
issues.
We especially advise some o f the con­
vertible issues, or those with stock pur­
chase warrants. These must be carefully
chosen, fo r during the past two years
bonds have been offered that have been
solely a gamble on what certain exploited
stocks were likely to do. There are some
convertibles, however, whose options allow
one to take advantage o f appreciation
that the stocks may have over quite a
period o f time, and which are not selling
very much above their investment value
now. We strongly urge one to be always
on guard against those issues whose sole
claim fo r consideration is a temporary
option on some weak stock.
Despite the statements o f many bond
houses to the contrary, we believe little
is so important in an issue as market­
ability. You may never have to dispose
o f it, but when for any reason you do
wish to sell, you will not have to accept
what one or two houses may wish to offer.
You will know how the borrower is getting
along.
You will see weakness coming
long before you would in a smaller issue,
and what is more, you will be able to sell
at some price anyway. The big thing,
however, is that when an unexpected de­
mand is made upon your resources, you
will have issues that you can market within
twenty-four hours at a minimum sacrifice.
Maturities
N PLANN ING its investment program,
we believe a bank should give first
attention to maturities. While from a
purely investment standpoint, the long­
term outlook would justify a greater com-

I

47

C

o n s is t e n t

reader interest being the

basis of greatest magazine strength, we
proudly

p o i n t to t he f ac t t hat t he

N orthwestern Banker , with a subscription
renewal percentage of over

8

0

%

possesses the highest renewal subscription
consistency of any sectional banking mag­
azine with membership in the Audit Bureau
of Circulations.

In such reader

interest

you find the best assurance of advertising
profit.

THE NORTHWESTERN BANKER
DES MOI NES
O n e of the De Puy Group of Banking and Insurance Magazines


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Federal Reserve Bank of St. Louis

Northwestern Banker

June 1930

48
mitment in long-term issues than in short­
term; the possibility o f a banks’ having
to raise funds unexpectedly makes it abso­
lutely necessary to carry a good propor­
tion o f short-term issues. W e recommend
about 20 per cent that mature -within the
first three years, another 20 per cent in
the following five years, a third 20 per
cent in the following ten years, and the
remainder in longer-termed issues. This
is approximately the same as that recom­
mended by the commissioner, to have 50
per cent maturing within ten years.
A few words as to the different types o f
investment. W e believe that public utili­
ties offer today the best combinations of

security, yield, and outlook that the mar­
ket offers, and we suggest around 40 per
cent o f one’s holdings in them. The great­
est danger in them revolves around the
highly pyramided holding companies
which have very little intrinsic strength
and are almost wholly dependent upon
continuing favorable operating conditions.
Gamble on a very few o f that sort if you
like, but be sure that your holdings are
principally in the operating companies
and the stronger holding companies.
In rails, we advise around 15 per cent
cent. It is very difficult fo r investors
in this section o f the country to appre­
ciate their investment strength. W e be­

V ------------------------------------------------------------------------------------------ ^
$ 1 5 0 , 0 0 0 . 0 0

T U L S A ,

O K L A H O M A
7%

P AV IN G AN D SEWER T A X BILLS
M a t u r it ie s — O n e -te n th e a c h y e a r .
FREE

FROM

D e n o m i n a t i o n s — V a r io u s

FEDERAL

IN C O M E

TAX

T h e p r o p e r t ie s s e c u r in g th e s e T a x B i l l s are 100% improved.
T h e y are c h o s e n f r o m s c h e d u le s in e x c e ss o f th e a m o u n t a b o v e
li s t e d , a n d a l l T a x B i l l s o n u n i m p r o v e d p r o p e r t ie s a r e w it h h e ld
fr o m

th is o ffe r in g .

P R IC E — P A R

AND

ACCRUED

IN T E R E S T T O Y IE L D

7%

Concessions to Bankers.

P

r in c e

& W

h st e l y

Established 1878
OTTO ANTONSEN, Resident Partner
The Investment Department of this organization
announces the appointment of

lieve the railroads have achieved a stabil­
ity that has not been equalled by any
other type o f corporation, and that rails
offer a foundation fo r any investment list
that cannot be duplicated. Because of
the demand fo r them, yields are not at­
tractive. There are few “ middle ground”
rail issues, and one is forced to drop from
quite high-grade issues to those that are
distinctly speculative.
W e do not be­
lieve, however, that any investment list
can safely pass up at least a fair propor­
tion o f rails.
Industrials
HE word “ industrial” is used to in­
clude those which have not been given
a distinct name by themselves. Generally
speaking, we believe that the proportion
o f industrials that a bank holds should
not be greater than 25 per cent, fo r most
o f its other assets are loaned to industry
or agriculture.
Time forbids any dis­
cussion o f the different industries, but
there are very, very few bonds in the
following industries which we would ap­
prove o f a client holding: Coal, Cotton
Goods, Leather, Lumber, Paper, Sugar,
Woolens.
It is our belief that foreign issues offer
exceptionally good combinations o f yield
and security, and we are accordingly ad­
vising from 10 per cent to 15 per cent in
foreigns. The security o f many foreigns
compares favorably with that available in
domestic issues, and at almost one per
cent better yield. W e believe that over
a period o f years, developments point to
less danger o f war, to higher standards
o f living the world over, to fewer and
low7er tariff and economic barriers, and
to improving investment risks in most fo r ­
eign countries. There is greater necessity,
however, o f care in selection, but there
are scores o f issues which seem to us to
be entirely satisfactory fo r investment
purposes, and whose yields are sufficient
to satisfy any one.
It is our belief that a bank’s outside
investments hold greater possibilities o f
both gain and loss than any other depart­
ment o f the bank, and that they receive
only a fraction o f the study and attention
they deserve. But even though you fo r ­
get everything I have said, I hope that
this truth will stick with you and never
be forgotten— “ The secret o f a profitable
bond account is to prevent losses.”

T

CARL H U M M E L L
229 Insurance Exchange Bldg., Des Moines, Iowa

Want American Goods

as its Iowa Representative

A growing demand on the part o f
Europe fo r American made goods o f a
modern character is seen by Ward S.
Castle, executive vice president o f the
National Bank o f the Republic, who re­
turned to Chicago last month from abroad
after six weeks study o f conditions across
the Atlantic.
Europe seems particularly interested
in American building materials and in
Italy the demand fo r patented and proc-

CHICAGO
208 S. La Salle St.
AKRON

CLEVELAND

Northwestern Banker

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

MEMBERS
NEW YORK STOCK EXCHANGE
CHICAGO STOCK EXCHANGE
CLEVELAND STOCK EXCHANGE
CHICAGO BOARD OF TRADE
CHICAGO
CURB
EXCHANGE
DETROIT STOCK EXCHANGE
PHILADELPHIA

June 1930

BOSTON

DETROIT

NEW YORK
25 Broad Street

INDIANAPOLIS

READING

49

H.M. Byllesby and Co.
•

INCORPORATED

•

UNDERWRITERS, WH OL E SA L E R S
RETAILERS

OF

INVESTMENT

...SPECIALISTS

BOSTON

•

MINNEAPOLIS


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Federal Reserve Bank of St. Louis

SECURITIES

IN PUBL I C UTI LI TI ES

CHICAGO

N E W YORK

2 3 1 S O . L A S A L L E ST.

Ill

PHILADELPHIA
•

AND

•

ST. PAUL

DIRECT

•

PITTSBURGH
MI L WA U K E E

•
•

BROADWAY

PROVIDENCE

ST. L O U I S

•

•

DETROI T

KANS AS CITY

CLEVELAND
DE S M O I N E S

PRI VATE W I R E S

CHICAGO

•

NEW YORK

BOSTON

*

PHILADELPHIA

Northwestern Banker

June 1Ú30

50

N

orth A merican
T rust Shares

The Largest Fixed Trust in the United States
The investment portfolio of NORTH AM ERICAN TRUST SHARES
is composed of shares of common stock of the following outstanding
corporations, deposited with Guaranty Trust Company of New York,
Trustee. Over $75,000,000 have been purchased by investors as of
April 5, 1930.

Industrials

Railroads

A m erican Rad. & Stand. Sanitary Corp.
The Am erican T obacco Co. (Class B)
E. I. du Pont de Nemours & Company
Eastman Kodak Com pany o f N. J.
General E lectric Company
Ingersoll-R and Company
N ational Biscuit Company
Otis E levator Company
United F ruit Company
United States Steel Corporation
W estinghouse Elec. & M fg . Co.

The Atchison, Top. & Santa Fe R y. Co.
Canadian Pacific R ailw ay Company
Illinois Central Railroad Company
Louisville & N ashville R ailroad Co.
The N ew York Central Railroad Co.
The Pennsylvania Railroad Co.
Southern Pacific Company
U nion P a cific Railroad Company

Oils
Royal Dutch Company (N . Y. Shares)
Standard Dii Company o f C alifornia
Standard Oil Com panv (N ew Jersey)
Standard Oil Company of N ew York
The Texas C orporation

Utilities
A m erican Telephone & Telegraph Co.
Consolidated Gas Co. of New York
The W estern U nion Telegraph Co.

Circular showing an 18 year period of better than 13 per cent earnings
will be sent on request.
We offer an attractive arrangement for bankers desirous of handling
these shares. Write.
Price about $10.25 per share

H A R R Y H. P O L K & C O M P A N Y
Investment Securities

Insurance Exchange Building
DES MOINES
O u r c u rr e n t lis t o f h i g h g ra d e b o n d s c a n b e h a d o n r e q u e s t.

L

a m

B

s o n

r o

E s ta b lish ed

s

. &

Go.

1874

S tock s • B on d s • G rain • C on sign m en ts
MEMBERS
N ew Y ork S tock E xch an ge
C hicago B oard o f Trade
C hicago S tock E xch an ge
N ew Y ork Curb (A s s o cia te )

K ansas C ity B oard o f T rade
W in n ip eg Grain E xchange
M in n eap olis Chamber o f Com m erce
A nd all other p rin cip a l exchanges

IO W A O F F IC E S
Cedar R apids
D avenport
D es M oin es
Dubuque

Northwestern Banker

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Federal Reserve Bank of St. Louis

Ft. D od g e
Iow a F a lls
M arshalltow n

M ason C ity
S iou x C ity
Storm Lake
W a te rlo o

H O M E O F F IC E
166 W . Jackson Boulevard
Chicago

June 1930

essed roofing and insulating goods has
grown to large proportions, Mr. Castle
said. Italy, he stated, gives an amazing
outlook for prosperity.
“ Our greatest worry about Europe right
now is what will be done in the way of
retaliation against the new tariff,” said
Mr. Castle. “ The French are particular­
ly bitter about the tariff bills as they now
stand and my observation is that they
are prepared to take drastic steps for
retaliations should there be no modifica­
tions.
“ Our foreign trade has been developed
to where it can be hurt. The United
States would be severely hurt if the tariff
is not made reasonable. It was different
in the days o f the McKinley administra­
tion when the tariff was pushed up beyond
all reason. W e had little or no foreign
trade then and it made small difference
what we did.
“ On the other hand, France has had a
change of heart concerning the American
tourist trade. In the last few weeks the
French have adopted the satisfied cus­
tomer idea and are expending themselves
to make tourists feel that they want them
to come back again next year.
“ The talkies have not hurt the Ameri­
can motion picture industry. The sub­
stitution o f native voices and language
fo r the words spoken by American film
stars is already going on and seems to be
satisfactory while in the meantime the
producers in Hollywood are undoubtedly
meeting the situation in their foreign trade
by the employment o f foreign speaking
actors.
“ Our greatest trouble is the sort o f
advertising we get abroad. They know
all about Capone everywhere you go but
not a thing about Chicago’s $20,000,000
new Civic Opera House. The European
newspapers carried big stories about the
consolidation o f the Capone and “ Bugs”
Moran interests in Chicago. What we
have to do is to sell Europe on the good
things o f our country. Every American
tourist in Europe should, without making
a pest o f himself, tell Europeans about
the progress o f America in a civic and
artistic way as well as industrially.”
Mr. Castle added that although the
situation in India has caused a pause in
England no injury to business in the is­
land kingdom has been noticed. He said
that the English textile trade showed signs
o f good improvement.

Perhaps She’s Dead
Singer: “ And fo r bonnie Annie Laurie
I ’d lay me down and die.”
Listener (rising) : “ Is Miss Laurie in
the audience?”

Modern Love
“ Your sweetie sure uses plenty o f make­
up.”
“ She’s my powdered sugar.”

51

E. Raymond Dutro & Company
Reorganized
History and Business
E. Raymond Dutro & Company, an Iowa corporation, was organized February
7, 1928, as an investment company and since then lias been engaged in the
purchase and sale of high grade stocks and bonds.

Dutro & Company
To provide for the expansion of its activities a change was made in the capital
structure of E. Raymond Dutro & Company on April 10, 1930, when Dutro &
Company, a Delaware Corporation, was organized with 120,000 shares of no
par capital stock for the purpose of absorbing the interests of E. Raymond
Dutro & Company.
Dutro & Company will continue in the general securities business but will
specialize in the securities of natural gas properties which it has acquired.

Natural Gas Properties
Illinois-Kansas Natural Gas Company.
Dutro & Company owns the Illinois-Kansas Natural Gas Company, which
has gas reserves, leaseholds, and franchises which are being appraised by Mr.
Herbert R. Davis, Consulting Engineer of Buffalo, New York, and whose pre­
liminary reports indicate a total value for the properties of over $500,000.

Arkansas Valley Natural Gas Company.
Dutro & Company owns twenty-five per cent of the Common Stock of the
Arkansas Valley Natural Gas Company, and based on preliminary figures of
Mr. Herbert R. Davis, Consulting Engineer of Buffalo, New York, it is indicated
that the total value of the properties, including the completed pipe line system,
will exceed Eight Million ($8,000,000) Dollars.

What “Standard Statistics99 Says


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

The Standard Statistics Company in a recent report on natural gas says, “ Stim­
ulated by the industrial demand for a cheap, efficient and easily handled fuel,
lhe use of natural gas is growing apace.
“ Country wide markets exist for and are in the reach of the natural gas supply
of the United States.
“ Acknowledging the demonstrated superiority of natural gas as a fuel, industrial
companies are providing a demand which present facilities are being rapidly
extended to meet.”

DUTRO

&

COMPANY

702 A m e r ic a n B a n k B u ild in g
D A V E N P O R T , IO W A

Northwestern Banker

June 1930

52

Lee, Higginson in New Hom e
PENING o f the netv business home
o f Lee, Higginson & Company on
the bank floor o f the recently com­
pleted Board o f Trade Building, in Chi­
cago, is considered o f special interest be­
cause o f the close association o f this old
banking house with the early and subse­
quent financing fo r many o f the leading
industrial and business enterprises o f the
middle west.
Removal o f the offices from the Rook­
ery, 209 South La Salle, where the firm

O

has been located for the last twenty-five
years coincided with the eighty-second an­
niversary o f the firm’s founding, a fact
which gave further significance to the
establishment o f the partnership in new
quarters in Chicago.
A feature o f the new home is a private
entrance at 137 W . Jackson Boulevard,
through which one passes into an attrac­
tive panelled vestibule. A private stair­
way rises to the lobby, reception hall,
conference room and private rooms o f

M U N IC IP A L BONDS
Exempt from all Federal Income Tax
L A K E C OU N TY, IL L IN O IS

R ate

S c h o o l D is tr ic t N o . I l l

Due

P rice to yield

---------4 ^ 4 %

1 9 3 2 /4 8

4 .4 0 %

_____ 4 % %

1 9 3 3 /6 3

4 .5 0 %

D U R H AM , N O R TH C A R O L IN A
W a te r W o rk s

E AST F E L IC IA N A P A R IS H , L O U IS IA N A
S c h o o l D is t r ic t N o . 2

-

51/2 %

1 9 3 2 /4 4

5 .0 0 %

-

514%

B E C K V IL L E , T E X A S
H i g h S c h o o l D is tr ic t

1 9 5 8 /6 8

5 .2 5 %

---------6 %

1 9 3 2 /5 1

5 .5 0 %

—

5 i/2 %

1 9 3 2 /5 7

5 .5 0 %

51/ 2 %

1 9 3 2 /5 4

6 .0 0 %

OLD FORT, N O R TH C A R O L IN A
W a te r W o rk s

M IL L E R C O U N TY, GEORGIA
E n t e r p r is e S c h o o l D is tr ic t

-

L A K E L A N D , F L O R ID A
R e f u n d in g

Special concessions quoted to Banks.
W r it e

fo r

c o m p le t e

c ir c u la r s .

JheManchett,tßondto

the partners and officials on the bank floor
above.
Activity o f the firm in Chicago and the
middle west before and since the estab­
lishment of offices here in 1905 has given
the partnership a strong relationship with
the industrial and business growlh in this
section o f the country.
The name o f Lee, Higginson & Com­
pany has been identified with financing
for enterprises o f national and interna­
tional scope, prominent among which are
business concerns o f such local interest as
Western Electric Company, Chicago Tele­
phone Company (predecessor o f the pres­
ent Illinois Bell Telephone System),
Montgomery Ward & Company, North­
western Elevated Company, Crane Co.,
Central Manufacturing District o f Chi­
cago, Fairbanks, Morse & Company,
Quaker Oats Company, Kansas City Ter­
minal Railway Company, By-Products
Coke Corporation (now Interlake Iron
Corporation), W . F. Hall Printing Com­
pany, The Nash Motors Company, LinkBelt Company, Household Finance Cor­
poration, Cudahy Packing Company,
Joseph T. Ryerson & Son, Inc., Marshall
Field & Company and others.
It is interesting that Lee, Higginson &
Company, themselves, sold privately the
first mortgage 5 per cent bonds, which
amounted to $12,000,000, issued in part
to finance the construction o f the new
Board o f Trade Building.

Incorporated 1910

Variety of Enterprises

IN V E S T M E N T S E C U R IT IE S
39 S o . L a S a lle St.

C H IC A G O

C en tral 4532

We
that the
of
is the greatest factor of safety in an
issue of bonds.
b e l ie v e

p o w e r

t a x a t io n

The fact is particularly significant
at the present time.
We specialize in Illinois Local
Improvement Bonds, which are
payable out of taxes, and exempt
from all Federal Income taxes.

L a n s f o r d H & Co m p a n y
Securities
33 North LaSalle Street, Chicago

Northwestern Banker

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

June 1930

A ILR O A D enterprises, copper mine
developments, telephone, electrical
manufacturing, motor and power indus­
tries were assisted in their growth by the
banking house. The name o f Lee, H ig­
ginson & Company has been identified
with financing fo r the railroads which
were later formed into the Chicago, Bur­
lington & Quincy and the Atchison, To­
peka & Santa Fe, fo r the Calumet and
Hecla copper mines in Michigan, Ameri­
can Telephone and Telegraph Company,
General Electric Company, United Fruit
Company, General Motors Corporation,
Shell Union Oil Corporation and many
other outstanding American enterprises.
No less important has been the position
occupied by the firm in international
finance. The name o f the partnership has
been linked with financing fo r govern­
ments and industries in Europe, Japan,
Australia and South America. Recently
the firm headed an international banking
syndicate which arranged an advance o f
$116,250,000 to Germany.
One o f the most important phases of
foreign activity has been the firm’s devel­
opment o f foreign trade financing,
through Higginson & Company, London,
and correspondents and connections cov-

R

53

Corporate T rust Shares
SPONSORED B Y TH E
O RIGINATORS OF
FIXED TRUST
SHARES
M oody’s Composite Rating “ A ”

CORPORATE
TRUST

SHARES

represents an ownership interest in
these 28 companies. Four shares of
common stock of each, together with
a Cash Reserve Fund for stabilizing
distributions, are deposited with
The Equitable Trust Company o f
New York, Trustee, for each “ unit”
of 2000 Corporate Trust Shares
issued.
Railroads
A tc h iso n , T o p e k a an d S. F .
I llin o is C e n tra l
L o u i s v i l l e & N a s h v ill e
N e w Y o r k C en tra l
P e n n s y lv a n ia R a i lr o a d
S o u th e r n P a c ific
U n io n

P a c ific

Oils
S ta n d a r d O i l o f C a lif .
S ta n d a r d O i l o f I n d .
S ta n d a r d O i l ( N e w J e r s e y )
S ta n d a r d O i l o f N e w Y o r k
T e x a s C o r p o r a t io n

Still Leading
All Fixed Investment Trusts in
CASH DISTRIBUTIONS
For the calendar year 1929, Corporate Trust Share cash dis­
tributions exceeded those of any other of the fixed type of in­
vestment trust. Total 1929 distributions were $1.96% per share,
equal to more than 17% on the average price o f the shares
for the year.
Corporate Trust Shares will make another substantial cash dis­
tribution to shareholders on June 30th, 1930. Accumulations
already in the hands of the Trustee, or expected to be received
between now and June 30th, added to the 1929 payments, will
result in a total distribution for the 18 months period substan­
tially in excess of any other investment trust of the fixed type
fo r the same period.
Moreover, the historical record of Corporate Trust Shares, cov­
ering the past 17 years, shows larger distributions and greater
percentage of return on investment than any other o f the fixed
type of investment trust now being offered, assuming existence
of the shares during such period.
Corporate Trust Shares are an investment for income.
Their unsurpassed income record is due t o :
1.
T h e s p le n d i d e a r n in g r e c o r d s o f th e 28 s tro n g c o m p a n i e s
in c l u d e d in th e p o r t f o l i o .
2.
T h e fa c t th a t h o ld e r s o f C o r p o r a t e T r u s t S h a re s r e c e iv e
all in c o m e f r o m th e tr u s te e d p o r t f o l i o , in c l u d in g in te r e s t o n

Utilities and Quasi-Utilities
A m e r ic a n T e l. & T e l.
C o n s o li d a t e d G a s o f N . Y .
G e n e r a l E le c t r ic
W e s t i n g h o u s e E le c t r ic
W e s t e r n U n i o n T e le g r a p h

th e C a s h

R eserve F und.

For investors who want maximum income, with minimum
principal risk, we unhesitatingly recommend Corporate Trust
Shares. Underlying these shares are the common stocks of
28 of Am erica’s greatest corporations, listed at the left, trusteed
with The Equitable Trust Company of New York. No sub­
stitutions are permitted in the list of stocks.
Distributions
are made semi-annually, June 30th and December 31st, against
coupons attached to certificates. Reinvestment of excess dis­
tributions is made possible through issuance o f “ rights” on
coupon date.
Let us tell you more about this attractive investment. Descrip­
tion circulars on request.

Industrials
A m e r . R a d . & S ta n d . S an .
A m e r . T o b a c c o ( C la s s B )
du P on t
E a s tm a n K o d a k
In g e r s o ll R a n d
In te r n a tio n a l H a rv e ste r
N a t i o n a l B is c u it
O t is E le v a t o r
U n i t e d F r u it
U n i t e d S tates S te e l
W o o lw o rth

Priced at the Market

C orporate T ru st Shares e n jo y a national
m arket. B id and a sked p rices appear daily
in lea din g n ew sp a p ers from coa st to coa st.

Dealer Inquiries Invited

•«"*S--------------------------------------------------

SMITH, BURRIS & COMPANY


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

Syndicate Managers— Central United States
120 South La Salle Street, CH ICAG O
LLOYD

P H IL L IP S & C O ., In c .

W h o le sa le R ep re sen ta tiv es fo r Sm ith, B u rris & Co.
Union N a tion a l B ank B ld g ., F R E M O N T , N E B .

Northwestern Banker

June 1930

54
ering all o f the largest business centers o f
the world. Announcement was recently
made o f the formation o f the partnership
under French laws o f Lee Higginson et
Cie., Paris.
An outstanding achievement o f the
firm’s foreign activity in recent years has
been the financing fo r International
Match Corporation, the American subsid­
iary o f Swedish Match Company, which
comprises the largest match business in
the world, and for Kreuger & Toll, the
Swedish holding and financing company
which has developed into one o f the fore­
most financial organizations.
In recent years the Kreuger & Toll
group has been instrumental in extend­
ing loans totalling more than $300,000,000
to European and South American govern­

ments in connection with the acquisition
o f concessions in the match industry.

rett Wendell, Jr., and W . McCormick
Blair, are resident in Chicago.

Attainment o f a leading position in the
world banking field by this private Ameri­
can firm has been no overnight achieve­
ment. It is a reflection o f the sound prin­
ciples laid down by the founders o f the
firm, John Clarke Lee and George Higginson, and o f the sedulous observance o f
these principles by partners o f the firm
through the eighty-two years since the
business began May 1, 1848.

An indication o f the active part played
by the resident partners in the business
life o f the city and middle west is the list
o f directorships held by them. Mr.
Schweppe is a director o f the Continental
Illinois Bank & Trust Company, Fair­
banks, Morse & Company, Marshall Field
& Company, Montgomery Ward & Com­
pany, and Union Refrigerator Transit
Company. Mr. Wendell is a director o f
Household Finance Corporation and W .
F. Hall Printing Company. Mr. Blair
is a director o f Interlake Iron Corpora­
tion (formerly By-products Coke Corpo­
ration), and Continental Casualty Com­
pany.
Lee, Higginson & Company owns its
own office buildings at 70 Federal Street,
Boston, and at 37 Broad Street, New
York, which house the partnership in
those cities.

It is interesting that two grandsons o f
the original founders are members o f the
present firm. They are George Cabot Lee
and Francis L. Higginson.
The partnership has grown through the
years to include sixteen partners, o f
which three, Charles H. Schweppe, Bar­

Producing and Marketing Natural Gas
withinAreas of Industrial Concentration

T

HE

At

the

use o f natural gas fo r hom e

heating, cooking, water heating and

other domestic purposes steadily increases.
same time

industry is utilizing

natural gas more and more because o f
its economy and efficiency.
Th e principal properties of
the

Appalachian

Gas

Cor­

poration group are situated
in several o f the most highly
industrialized sections o f the
United States, in proximity
to manufacturers who re­
quire natural gas in everincreasing quantities.

A p p a l a c h ia n
C o r p o r a tio n

G as
is

m ade up o f a group
o f p r o d u c in g c o m ­
p a n ie s

h a v in g e s ­

ta b lis h e d

m a rk e ts

in O h i o , W e s t V i r ­
g in ia ,

T en n essee,

K e n tu c k y an d

T exas.

A

la r g e p o r t io n o f th e g a s p r o ­
d u c e d b y th e s e c o m p a n ie s is

The new offices in Chicago occupy a
position on the bank floor o f the new
Board o f Trade Building, fronting on
Jackson Boulevard more than half the
width o f the building.
Architectural design and decoration
are in keeping with the traditional con­
servatism o f the firm. Of particular in­
terest, and also representative o f the en­
tire offices is the conference room, which
occupies the corner where La Salle Street
meets Jackson Boulevard. The walls o f
this room are covered with old and rare
wall paper, depicting views o f London,
Paris and Rome.
Colonial architecture o f the Georgian
period was adopted as most fitting fo r the
new offices. Particularly distinctive is the
quiet dignity lent by the extensive use o f
fine panelling in most o f the rooms and
corridors.
Along the Jackson Boulevard front, in
addition to the conference room, are the
rooms o f the partners, each o f which has
been given a distinguishing architectural
and decorative treatment in accordance
with individual tastes o f the occupants.
Desks, and other pieces are antiques,
many o f them imported from England.
From these front rooms one commands
a sweeping view o f La Salle Street
through high, wide windows. These win­
dows are a distinguishing feature o f the
bank floor o f the new building.

s o ld u n d e r l o n g - t e r m c o n ­
tra cts, a s s u r in g s ta b le e a r n ­
in g s a n d fu tu r e g r o w t h .
W e sh a ll b e p le a s e d t o s e n d
y o u in fo r m a t io n o n th e s e ­
c u ritie s o f th e A p p a l a c h ia n
G a s C o r p o r a t io n .

P.W.CHAPMAN ©CO,INC.
A
1 1 5 W . A d a m s S t r e e t , C h ic a g o

Northwestern Banker

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

June 1930

4 2 C e d a r S tre e t, N e w Y o r k

Dumb, Like Solomon
The boots at San Diego were getting
instruction in regard to firearms, when
the drill sergeant asked one o f the re­
cruits: “ Say, Jones, what’s the first thing
you do when cleaning your rifle?”
“ I always look at the number,” replied
Jones.
“ Oh, you do,” said the sergeant, sar­
castically. “ What’s the big idea?”
“ So I won’t clean someone else’s.” — Our
Navy.

55

W

e

W e lc o m e

-the increased business tempo which has caused
our clients to expect more of their investment
house than theyfdid a few years ago—welcome it
because we have more to give them.
Members of our organization, through constant
study and analysis of markets and business condi­
tions, are alert to the rapid and ever changing
factors that govern our present day investment
programs. We are able to pass on to you lastminute advice and information that is helpful and
valuable in planning your immediate and future in­
vestments, both for your bank and your customers.


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

We will welcome your inquiry.

IN V E S T M E N T

American Bank Building

S E C U R IT IE S

D A V E N P O R T , IO W A

Northwestern Banker

June 1930

56

Listed or Non-Lis ted Bonds?
ISCUSSING- the desirability o f
listed and non-listed bonds, a re­
cent issue o f “ Current Bank
Briefs,” issued by Ames, Emerich and Co.,
Inc., lias this comment to m ake:
“ The question o f the relative desirability
o f listed and non-listed bonds has been
frequently debated. Many persons be­
lieve that the fact that a bond is listed
assures it o f a high degree o f market­
ability and that non-listed bonds must
necessarily have a lower degree of mar­
ketability. It is probably true that the
listed bond which is actively traded in
possesses greater marketability than nonlisted bonds. It must not be overlooked,

D

WILL

BE

OUR
MAILED

however, that many listed bonds are sel­
dom traded in and that these bonds have
distinctly less marketability than have
non-listed bonds o f issues which are ac­
tively traded in by several well-established
houses. The most liquid bonds, and hence
those which are most suitable fo r a bank
secondary reserve, are those o f high qual­
ity which are actively traded in on the
New York Stock Exchange. On the other
hand, bonds which are listed on other ex­
changes or which are not listed at all need
not be excluded from a secondary reserve
account, provided an active and depend­
able market fo r them is maintained.
“ In the case o f the investment account

OFFERING LIST
REGULARLY UPON

REQUEST

G M A C obligations
en joy the protective background o f highly
liquid assets, with credit factors widely diver­
sified in region and enterprise. Long regarded as
a national standard for short term investment,
they have been purchased by thousands of banks,
institutions and individuals the country over.
available in convenient maturities and
denominations at current discount rates

G eneral M otors
A cceptance C orporation
OFFICES

IN

P R IN C I P A L

CITIES

Executive Office - B r o a d w a y at 5 7 t h S t r e e t - 'Hew T or\ C ity

CAPITAL,

N orthw estern B anker

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

SURPLUS AND UN D IV ID ED
O V E R $ 6 6 , 0 0 0 , 0 00

June 1930

PROFITS

o f a bank there is much to be said in
favor o f including both listed and unlisted
bonds which enjoy good but not active
markets. By sacrificing the liquidity of
the security to a small extent, an increased
yield may be obtained. Moreover, such
securities usually experience a longer, if
slower, swing in market values in response
to changes in interest rates than do active
listed bonds. They are thus peculiarly
adapted— when purchased in the right
proportion— to the needs of the invest­
ment account o f a bank.
“ There are two general types o f gen­
eral list bonds with which the banker comes
in contact: the ‘straight maturity’ bonds
and the ‘serial’ bonds. By ‘straight ma­
turity’ bonds is meant those bonds of
which all o f a certain issue are due on a
certain date. Serial bonds are, o f course,
those bonds o f a single issue which are
due serially over a period of years. These
differences have real significance from the
standpoint o f the secondary reserve and
investment accounts o f a bank. In gen­
eral, straight maturity bonds, other things
being equal, are more easily marketed
than are serial issues. For one thing,
serial bonds are rarely, if ever, listed on
any stock exchange and hence they do not
come in that class o f issues which are very
actively traded on a recognized exchange.
On the other hand, serial bonds o f ex­
cellent credit standing, particularly highgrade municipal bonds and equipment
trust certificates, which are practically
always issued in serial form, are fre­
quently quite liquid and are often very
useful in filling in maturity gaps in a sec­
ondary reserve account. It does not make
much difference whether straight maturity
or serial bonds are purchased for the in­
vestment account of a bank. It sometimes
happens, however, that it is possible to
pick up serial bonds in odd lots which,
due consideration being given to their
credit position, provide a substantially
greater yield than do comparable straight
maturity bonds.
“ In buying bonds fo r either the secon­
dary reserve or investment account o f a
bank, the banker is confronted with the
problem o f selecting bonds o f sound credit
standing which are adapted to his needs.
There are, o f course, bonds whose credit
position is known to every banker without
investigation on his part, bonds issued by
governments or corporations whose names
are household words. Such issues repre­
sent but a small minority o f the total
among which he may choose. It is neces­
sary fo r him, therefore, to obtain some in­
formation about the others, if he is select­
ing wisely. The large bank has a staff
whose time is devoted to analyzing the
credit position o f many companies and
which either has information or can easily
procure information in regard to bonds

57
which are offered. The executive o f a
small bank does not have such extensive
facilities at his disposal and hence must
rely on the information and advice of
outsiders.
It is particularly essential,
therefore, fo r a banker in this position to
seek his investment counsel from those
who are not only honest, but capable. His
correspondent bank in the large city can
frequently aid him. He should also select
one or two investment hankers, after a
thorough investigation o f their records,
upon whom he can rely. He will be par­
ticularly fortunate if he can find either a
correspondent bank or an investment
banker who thoroughly understands not
only securities but the problems encoun­
tered in developing a sound secondary
reserve account and a profitable invest­
ment account. General list bonds offer
many attractive possibilities for both ac­
counts, provided they are selected with
discrimination and understanding.


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

Bank at the regular monthly meeting o f
Departmental Changes
the directors.
W . H. Hodge, vice president and man­
Mr. Pink has been associated with the
ager Sales and Advertising Department
bank for a period o f thirty years. For
o f the Byllesby Engineering and Man­
three years he was counsel for the Illinois
agement Corporation, announces the fo l­
State Bankers Association. Mr. Weldon,
lowing departmental changes :
formerly president o f Weldon & Baldwin,
T. P. Pfeiffer has been appointed ad­
an advertising agency, is a newcomer to
vertising manager o f the Byllesby Engi­
the Foreman-State organization. He will
neering and Management Corporation and
be in charge of business development work
Standard Gas and Electric Company.
in the Trust Department, while Mr. Fink
J.
W . Hicks has been appointed pub­
will also devote his time to Trust Depart­
licity director o f the Byllesby Engineering
ment work.
and Management Corporation and Stand­
Mr. Weldon has had considerable ex­
ard Gas and Electric Company, also re­
perience in trust affairs and is well known
maining in charge of the publications o f
as the author o f articles on trust matters
these companies issued fo r executives, em­
which have appeared frequently in finan­
ployes, etc.
cial magazines. He is at present writing
a textbook on trust activities fo r the
New Vice Presidents
Bankers Publishing Company. The ad­
vertising agency which he headed fo r two
Theodore Tefft Weldon and George E.
Pink were elected second vice presidents years specialized almost entirely in trust
accounts.
o f the Foreman-State Trust and Savings

Originators, Dealers,
Distributors of

HIGH

G R A D E

A N D

B O N D S

S T O C K S

A l l Issues Bought

—

S o ld — Quoted

H il l & C o m p / h « v
I NCORPORAT ED

Investment Securities
214 Sixth Avenue

DES MOINES

N orthw estern B anker

June 1930

58
Mr. Weldon was born in Chicago and
received his advanced education at the
University o f Wisconsin and the Univer­
sity o f California. He is a member o f
the Evanston Country Club, Lake Shore
Athletic Club, Town and Country Club,
317th Cavalry Polo and Hunt Club, and
Sigma Phi Epsilon fraternity.
Mr. Pink is a member o f the Hamilton
Club of Chicago and the Swedish Club
o f Chicago and is a past national presi­
dent o f Phi Alpha Delta law fraternity.
He received his advanced education at the
Illinois College o f Law and the Univer­
sity o f Michigan.

ORGANIZED
— and Equipped

- t o SERVE

f
i

Bankers, everywhere, realize that in­
formation pertaining to investment prob­
lems must be complete in every detail as
well as thoroughly dependable.

i
That such information should be rendered, only
after the most thorough consideration of one’s
present investment holdings, together with a com ­
plete analysis of securities under inspection for
purchase, is an established fact.

'{
Ï

I

Bank executives, with such knowledge of ap­
propriate investment opportunities, can carefully
plan an investment program for their secondary
reserves with confidence that the yield will be
highly gratifying, and prompt liquidation possible
when necessary.

%
1

$

I

I

W e feel that our experience, vigilance and
knowledge can be of real and definite value to you
in this work. Such a service is available to all
bankers in the Northwest through the Victor J.
Silliman Company, Inc., without obligation.

&
■

\

V i c r o uu tj.
*

&
I
I

^

S IL L IM A N

C OM.P A N Y .

203-205 Fleming Building
D ES M O IN ES, IOWA

^ _

orthw estern B anker
Digitized for N
FRASER
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

_

_

June 1930

_

IN C .

I
'è

New Policy
The Northwestern National Life o f
Minneapolis has just announced its new
Modified Life policy, a non-participating
contract in which life expectancy is com­
puted on the new American Men Table.
The policy is issued at a premium only
slightly higher than that fo r term insur­
ance, the automatic adjustment to a per­
manent premium, most commonly made
in policies o f this kind in three or five
years, being postponed for many years.
The insured has the privilege o f adjust­
ing to a permanent rate on very favorable
terms in the tenth year and any time
thereafter until the time o f automatic
adjustment, which has been set at seven
years prior to the end o f the life ex­
pectancy period according to the new
American Men Table o f Mortality.
At that time the insured can elect to
continue the payment o f the same prem­
ium, instead o f the automatically adjusted
premium, in which case he may carry the
policy to the end o f the life expectancy
period, and receive its then cash value.
Or, he can take a reduced amount o f in­
surance fo r approximately the same
premium, and carry the policy fo r the
balance o f his life on that basis.
The use o f the American Men Table in
computing life expectancy extends that
period from one year to three years
longer, giving the policy a distinct advan­
tage as compared with other contracts
running to the end o f the life expectancy
period.
The policy is convertible to any higher
premium non-participating form in the
first ten years o f the policy at the attained
age, or at the original age if back prem­
iums are paid with interest.
This policy is presented by the North­
western National to fill the acknowledged
demand fo r a plan o f life insurance which
will permit the insured, in the early years
o f the contract to carry his insurance at
a premium lower than is ordinarily
charged fo r a Whole L ife policy, and
still provide him with insurance fo r his
entire lifetime.
“ Circus in tow n?”
“ No, this is a Christmas tie.” — TJ. o f
Washington Columns.

59
X ld

XXI

F
31
X

XIC

xx:

x x i

xx:

xi c

x k

IX ic

:

XXI

XSC

H

SURETY GUARANTEED BONDS
Protect Your Customers
The fact that two old-line surety companies are
willing to guarantee a bond, is in itself evidence of
XK "

the soundness of the bond.
The surety companies assume a definite financial

XK

guarantee that protects the bondholder under all

X K . _____ X tC Z Z Z Z X K H Z n X X H —...X K

circumstances and, for their own protection, exer­
cise unusual care in the selection of the issues they
guarantee.
The joint and several guarantee of the surety com­
panies, endorsed directly on each bond underwrit­
ten by us, should appeal to bankers, institutional
investors and individuals as a high-grade invest­
ment security hearing a liberal yield.
W e shall be glad to send you complete information

XK- _______ XIC

about this type of investment.

'■
"A K

T
Provident State Securities Company
134 N o r th L a S a lle S tre e t
C H I C A G O ,

I L L I N O I S

A

L,


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

xx:

x x i

XJC

X K

X 1C

XXI

x k

:

XXI

X JC

XXI

XXI

N orth w estern B anker

June 1930

60

Chicago investm ent 'S\ews
IO W A continues to be one o f the bright
spots on the business map according to
La Salle Street investment houses. Insur­
ance company executives likewise report
Iowa and adjoining territory as being in
better shape than practically any other
section o f the United States at the present
time. Much comment has been occasioned
recently by statistics which have been re­
vealed, showing that the Hawkeye state,
with a population o f two and one-half
million, owns more automobiles than either

M

B y WILLIAM H. MAAS
Vice President,
The Northwestern Banker.

New York with six million population or
Chicago with more than , three million.
Bond and security holdings o f the banks
in practically every section o f the state,
are likewise worth talking about.
G. L. OHRSTROM & COM PANY have

i s s o u r i - K

P i p e

L i n e

C

a n s a s
o m

p a n y

A Strong
Future Position
It should be noted that the location of this company’s gas
reserves is not only advantageous from a supply standpoint,
but also from a distribution standpoint, for the eight states
from which it is prepared to operate have available an
immediate market and are easily accessible to the nation’s
major markets.
This indicates a strong future position which should he
reflected in earnings.

W e

recom m end this C om m on Stock

Quarterly dividends of 2^2% in stock
— equivalent to an annual stock dividend of 10% .
Listed on the New York Curb and
Chicago Stock Exchange.

announced a new $11,500,000 issue of
Southern Natural Gas Corporation, 6 per
cent Convertible Sinking Fund Gold De­
bentures. The Southern Natural Gas Cor­
poration owns and operates an interstate
natural gas transmission system recently
completed and extending from the Monroe
and Richland gas fields in Louisiana
through Mississippi and the Birmingham
district o f Alabama to Atlanta, Georgia.
It is one o f the most extensive high pres­
sure natural gas transmission systems
ever constructed.
THE
F IR S T
G U ARDIAN
COM­
PAN Y, 105 West Adams' Street, Chicago,
has recently announced the opening o f
four offices fo r the development o f busi­
ness in Iowa. These offices are in charge
o f the following agents: A. R. Buswell,
Sioux City; Paul Eighney, Waterloo;
Chas. Quaife, Cedar R apids; Fay G.
Whitney, Independence, Iowa.
FORM AL
ANNOUNCEMENT
has
been made by American Basic Business
Shares Corporation, o f New York, o f a
new fixed investment trust called Fixed
Trust Oil Shares. In order to obtain a,
true cross section o f the entire oil indus­
try, the portfolio consists o f leading inde­
pendent as well as leading Standard Oil
Companies.
This new trust differs in its plan of
operation from other fixed investment
trusts through its method o f periodically
liquidating market appreciation o f the
group investment.
This unique provi­
sion preserves the original balanced diver­
sification o f the portfolio in a way which
is not obtained by the “ accumulation” or
“ income” type o f trust.
The American Basic Business Shares
Corporation is a recognized pioneer in
the field of fixed trusts, having originated
Fixed Trust Shares and Basic Industry
Shares. It is closely affiliated with the
American Depositor Corporation which
sponsors Corporate Trust Shares. Whole­
sale syndication o f Fixed Trust Oil Shares
is by Ross Beason & Co., Inc., o f New
York, Los Angeles, and Salt Lake City
and by Smith Burris & Company, o f
Chicago.

Send for descriptive circular.

J A C K L E Y - W IE D M A N & C O .
Suite 701-702 Register and Tribune Building
Des Moines, Iowa

N orthw estern Banker

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Federal Reserve Bank of St. Louis

June 1930

Phone 3-5181

FORGAN, G R A Y AND COMPANY,
INC., have announced the removal of their
offices to One, La Salle Street. David L.
Shillinglaw, former resident o f Des
Moines, is vice president o f the company.
W IT H A N A TIO N AL REPU TATIO N
as an insurance producer par excellence,
the name of Darby A. Day, o f Chicago,
is gradually gaining prominence in the
financial world. Through the formation

6]
recently o f the Darby A. Day Investment
Company, he now heads the following
organizations: Chicago Fidelity & Cas­
ualty Company; Fire Insurance Com­
pany o f Chicago, and The Indemnity Com­
pany o f America. He is likewise manager
of the Chicago offices of The Union Cen­
tral Life Insurance Company o f Cin­
cinnati.
Aside from these various in­
terests, Mr. Day is also chairman o f the
board o f the Lawrence Avenue National
Bank o f Chicago. He writes with both
his right and left hand; is an inspiring
sales speaker. A postcard simply ad­
dressed “ Darby A. Day, U. S. A .,” mailed
from any section of the United States
would be delivered to him in Chicago with
but little delay.
T H IS W R IT E R has been accused of
being a “ bull’ on Iowa. Here is one o f
the typical reasons w h y:
An Iowa
farmer, who dresses as well as any Chi­
cago banker or bond salesman, spent a
week end with us last month. He has a
fourteen hundred acre farm, all under
cultivation, land valued at $175.00 per
acre and upward.
Applies systematic
modern business methods to its operation.
His live stock is valued at $100,000.00,
has ten thousand dollars invested in
machinery and up-to-date equipment;
lives in a $35,000.00 farm home. Twelve
automobiles, including tractors, are used
on his farm. He is making money. He
is one o f the successful 215,000 farmers
in Iowa, America’s most prosperous farm
commonwealth, Senator Smith Brookhart
to the contrary notwithstanding.

Passes 75 Million Mark
Sales o f North American Trust Shares,
the largest fixed trust in the United States,
have passed the $75,000,000 mark in less
than a year and three months since offer­
ing, indicating the great demand for this
type of investment which has become ac­
centuated since the market break o f last
fall according to advices received recently
from Thomas F. Lee & Co., Inc., syndi­
cate managers for Distributors Group,
Inc., sponsors o f the trust. A new monthly
sales record o f $11,089,000 was established
in April.
“ Larger scale purchasing of fixed trust
securities by investors throughout the
country demonstrates clearly the hold
which this type o f investment has taken
on the public,” Thomas F. Lee, president
o f Thomas F. Lee & Co., Inc., points out.
“ The idea o f a carefully diversified inter­
est in a selected list o f the highest grade
stocks purchased strictly for investment
has exerted a wide appeal.”
North American Trust Shares is the first
trust to adopt the principle o f maintain­
ing the initial balanced diversification
through semiannual distribution o f all se­
curities including proceeds from the sale
o f rights, stock dividends and split-ups.
The holder o f these shares is offered rights

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Federal Reserve Bank of St. Louis

semiannually to reinvest that portion o f
the returns constituting a return o f cap­
ital in additional trust shares at a discount
o f 50 cents per share. Through this proc­
ess extraordinary distributions on a few
underlying stocks are spread over the en­
tire 28 companies, thereby increasing the
investment in each and re-establishing the
initial balanced diversification. Disburse­
ments for 1929 exceeded 11 per cent on
original offering price.
Stocks underlying North American
Trust Shares represent 28 o f the country’s
greatest corporate units and constitute in
themselves a widely diversified interest in
the basic industries o f the nation.
It is significant, states Lee, that fo r the
year to date purchases o f these shares
have been greatest in periods o f market
irregularity or weakness, demonstrating

the idea that most investors believe that
the stocks underlying North American
Trust Shares are attractive purchases on
marked recession.
Continued growth o f the fixed trust idea
suggests the absorption o f an increasing
volume o f outstanding stocks o f the major
corporations. This will be a growing force
tow7ard stability in that pui’chases o f com­
mon stocks by fixed trusts represent the
strictest type o f investment and the possi­
bility o f these underlying shares appear­
ing on the market in any volume through
conversion is remote.

Now Has 175,000 Clients
One o f the most remarkable, steady
growths any company has ever enjoyed
in the Northwest started from an idea
conceived 36 years ago by a young Minne-

Investment Advice
Advice is a term often used and often misunderstood.
Analysis rather than advice, should be the first step
in any investment decision. Every corporate investor,
before purchasing any type of securities should analyze
thoroughly its own financial position.
Then when its individual problems are clearly defined
and understood, a competent investment organization
should be consulted
The National City Company, with its international
buying and distributing organization, is well qualified
to act in such consultant capacity. In its list of offer­
ings will be found high grade securities of widely dif­
ferent classifications. From them, with the help of a
National City man, investments that conform to spe­
cific needs may be selected.

The National City Company
N A T I O N A L

C I T Y

B A N K

B U I L D I N G ,

Offices in Principal Cities throughout the

N E W

Y O R K

United States

and Canada

and in London, Amsterdam, (geneva, Tokio and Shanghai.

N orthw estern B anker

June 1930

62
apolis lawyer. More than 175,000 indi­
viduals and businesses are now using the
savings plan of the Investors Syndicate.
The Investors Syndicate was formed in
Minneapolis, Minnesota, by John L. Tappan, a 24-year-old attorney. According
to his plan, $110 would be placed in first
mortgages and high grade bonds as secur­
ity for every $100 o f obligations to its
investors. His idea also, included loaning
home owners money that could be paid
back on the installment plan.
On July 10, 1894, articles o f incorpora­
tion wTere issued for the company.
Tappan had practically no capital to
Avork on, but was convinced that the small
investor should have an opportunity to
increase his funds with the same degree
o f safety and an equal return Avitli the
large investor.

Tappan’s

first

prospective

customer

was the superintendent o f the Avorld’s
largest flour mills. He explained his idea,
and the result Avas the sale o f the first
Installment investment certificate issued
by the Investors Syndicate.
The Investors Syndicate grew step by
step. With the thought in mind o f es­
tablishing the company on a firm basis,
the officers did not draw a salary fo r fou r­
teen years after the company’s organiza­
tion. They depended upon commissions
fo r their income. With this same idea
in mind, diAndends Avere not paid to stock­
holders fo r 21 years. All money was put
back into the company to make it stronger
and protect its investors.
In 1925, John R. Ridgway, formerly
an executive o f the Western Bond and
Mortgage Company o f Portland, Oregon,
became president. Since then, the com­
pany has made its most rapid strides.

Fundamentals
The present bond market exhibits
conflicting conditions that often
make clear judgment difficult. De­
spite cheap money the prices of good
bonds are low and yields relatively
high. We believe that bankers who
follow proved fundamentals in judg­
ing values and use a moderate
amount of courage in buying bonds
for their bank’s account will be
gratified by the results obtained.

During 1928, $78,000,000 in certificates
were sold in the United States and Canada.
In 1929, sales amounted to $105,000,000.
These certificates are purchased by inves­
tors, in regular payments made through­
out a ten-year period, fo r three distinct
purposes:
1. To provide parents Avith funds for
the college education of their children.
2. To build annuity funds for protec­
tion against old age.
3. To set up business reserve funds.
It is interesting to note, President
Ridgway pointed out, that many busi­
nesses are using Investors Syndicate Plan
to build up reserve funds. He said that
executives o f these firms like the auto­
matic features o f the plan and the exemp­
tion it gives them from the AA’Orry o f in­
vestment and reinvestment.
Funds accumulated by this plan are
used to extend the business by taking ad­
vantage o f opportunities requiring imme­
diate cash, to retire indebtedness, to pay
up bond or preferred stock issues, to
liquidate a business or continue it until
favorable sale is made, to supply ready
cash in case o f emergency or temporary
financial depression.
“ Many bankers throughout the United
States and the provinces o f Canada are
listed among our certificate holders,” Mr.
Ridgway said. “ The Investors Syndicate
preaches thrift, first and last. It serves
as a steadying influence in the commu­
nity.”
The bulk o f the firm’s investments are
made in first mortgage loans on residence
property in 28 leading cities o f the North
American Continent through the organ­
ization’s own loan agencies.
First mortgages on improved city resi­
dential property funded by the Investors
Syndicate in the year ended February 28
totaled $9,454,433.64 compared Avith a
total o f $5,527,410.00 for the year ended
December 31, 1929, according to a report
issued by the company. The Investors
Syndicate has branches in 51 cities o f
Canada and the United States.

Iotva Representative

MAURICE F. LEAHY
M a n a g e r o f T r a d h .g S e r v i c e D e p a r t m e n t

THOMAS F. FORD

B R O K AW

Digitized for N
FRASER
orthw estern B anker
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Federal Reserve Bank of St. Louis

AND CO M PAN Y

105 South La Salle Street
C H IC A G O

June 1930

Becomes President
Eric F. Grundin has been elected presi­
dent o f the Old Colony State Bank, Chi­
cago, succeeding Mr. Arvid L. Peterson,
resigned. Mr. Grundin will continue his
practice o f law and devote a part o f his
time to the bank’s activities.
Frank L. Johnson, formerly cashier o f
the Hyde Park-KenAvood National Bank,
has been elected vice president and cash­
ier o f this bank, and has assumed his new
duties.

A Correction
On page 46 o f the May, N or th w ester n
B a n k e r , appeared a story relating to the
appointment o f Claude E. Nichols, former
Des Moines Banker, as an Iowa repre­
sentative fo r the Chatham-Phenix Corpo­
ration. It Avas also stated that Leo R.

63
Brown is representing the same company
in Des Moines, with George M. Peterson
representing them in Cherokee, Iowa.

with we are reproducing the same cut,
this time properly labeled with the name
of George M. Peterson.

Map of Chicago
An interesting map o f the Chicago area
has recently been drawn fo r Lansford &

Company. Added interest is attached to
the drawing, in view o f the recent census
figures which give a population in excess
o f three million fo r the city o f Chicago.
In addition to the city o f Chicago and
Cook county, the map also enables one to
quickly visualize the adjacent counties.

W e are pleased to announce that
E. F. C A V A N A U G H
Peoria, 111.
R IC H A R D F. SALOM ON

I. A . JOHNSON
LaCrosse, W is.

Milwaukee, Wis.

W . H. M cN A LL Y
Minneapolis, Minn.

CHRIS J. H U STON
Ottumwa, la.

LEE C. SCH N AKE
Des Plaines, 111.

are now associated with this firm in the sales department

W B.
GEORGE M. PETERSON
Along with a photograph o f Mr.
Nichols, a photograph, carrying the cut
line, “ Leo R. Brown,” but in reality a
photograph o f Mr. Peterson was used
with this story. W e are sorry this mistake
took place, but to clarify matters, here­

<&

Co.

Members Chicago Stock Exchange
Members New York Curb Exchange, Associate
120 South La Salle St., Chicago

Underwriters and Distributors of Investment Securities
Commission Orders Executed on All Exchanges

THE TYPE OF BONDS WE OFFER
IS OUR BEST RECOMMENDATION
DIRECT OBLIGATION
M U N IC IP A L
SCHOOL
COUNTY
T O W N S H IP

Glaspell V ieth & Duncan
American Bank Building
DAVENPORT, IO W A
Phone Walnut 2236
CH ICAGO, ILL.

GENER AL M A R K E T BONDS

Phone Harrison 1848

You are invited to visit and make use of our Facilities while visiting in Davenport


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Federal Reserve Bank of St. Louis

N orthw estern B anker

June 1930

64
Awards made to companies in the
Standard Gas and Electric Company
system were as follow s: Northern States
Power Company, Minneapolis, first prize
in the Central Station Financial Division;
Wisconsin Valley Electric Company,
Wausau, and Oklahoma Gas and Electrio
Company, Oklahoma City, first and third
prizes respectively in the Electric Com­
mercial Division, and Pittsburgh Railways
Company, Pittsburgh, second prize in the
Electric Railway Posters and Cards Divi­
sion.

Lansford & Company specialize in Illinois
local improvement bonds. A copy o f the
map may be had by addressing Mr. Paul
T. Lansford, president Lansford & Com­
pany, 33 North La Salle Street, Chicago.

W in Advertising Prizes
Four companies in the Standard Gas
and Electric Company system were prize
winners in the annual competition o f the
Public Utilities Advertising Association
for the best examples o f newspaper adver­
tising by member companies, according to
information received by W . H. Hodge,
vice president and manager sales and ad­
vertising department, Byllesby Engineer­
ing and Management Corporation.

Second prize in the Central Station
Financial Division was won by the IowaNebraska Light and Power Company,
Lincoln, Nebraska, and third prize in the

¿iiiiiiiiHiiniiiiiiimiiiiuiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiimtiiiiiiimmiiiimiiiiiiiiiiiiiiiiiiiiimiiiiiiiiiiiiiiiiiiiiiiiiimiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiü

A Representative List o f Bonds
for investment and secondary
reserve accounts

yielding from 5 % to 7 %
A ppro x.

C

a l if o r n ia

N

ew

A

r iz o n a

O

hio

W

S er v ic e C

a ter

orp.

Price

1st Mortgage 5s, 1958...............................99
Y ork W

ater

S er v ic e C

S er v ic e C

ater

ater

S e r v ic e C

r d U t ilit ie s

C

Convertible Debenture 5s, 1979................... 90

and

P o w er C
G as C

anh attan

C

om pany

atural

G as C

of

6.33%

S a n P aulo

Sinking Fund 7s, 1940................................. market
A

6 .12%

o r p o r a t io n

Convertible Debenture 6s, 1944................... market
State

6 .00%

B u il d in g

1st Mortgage & Leasehold 6s, 1958............ 99
S o uth ern N

5.80%

o rp.

1st Mortgage 5s, 1948................................. 89
M

5.67%

o r p o r a t io n

Convertible Debenture 5s, 1979................... market
atural

5.55%

o r p o r a t io n

Secured 5s, 1950.......................................... 92

O klah o m a N

5.55%

o r p o r a t io n

S t a r r e t t I n v e st in g C
P eo ples L ig h t

5.50%

o m pany

1st Mortgage 5s, 1952................................. 93
T

5.30%

o m pany

1st Mortgage 5s, 1958................................. 93
I llin o is W

5.10%

o m pany

1st Mortgage 5s, 1948............................... 96
W

5.08%

o rp.

1st Mortgage 5s, 1951...............................983^
E diso n C

Approx.
Yield

m e r ic a n

N

atural

G as C

7.56%

o rp.

Debenture 6 ^ s, with warrants, 1942.......... market

7.70%

A bove quotations are subject to prior sale and change in price
Write for more specific information
on any or all of these issues

G. L. O h r s t r o m G C o
in c o r p o r a t e d

Insurance Exchange Building
Des Moines

Board of Trade Building
Chicago

O ffic e s in p rin cip a l c ities

......................... ...................................... .........................................................
N orthw estern B anker

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Federal Reserve Bank of St. Louis

June 1930

same division by Consumers Power Com­
pany, Jackson, Michigan. Second prize
in the Electric Commercial Division was
won by the Edison Electric Illuminating
Company o f Boston. First prize in the
Electric Railway Posters and Cards Di­
vision was won by the Chicago Rapid
Transit Company, and third prize in the
same division by the Cincinnati Street
Railway Company.
The prize winning advertisements have
been reproduced, together with over 500
representative public utility advertise­
ments, in the new 1930 advertising port­
folio o f the Public Utilities Advertising
Association, which has recently been re­
leased.

Business Improving
Business in the northwest and middlewest states shows improving tendency,
notwithstanding the presence o f some
adverse factors, according to the North­
west Bancorporation May Review.
Less favorable developments noted are
a slow movement o f grain out o f the
larger centers and a decline in copper
prices with effect on general business in
northern Michigan and Montana.
Favorable features are an improvement
in the general employment situation, a.
crop outlook throughout Minnesota, the
Dakotas, Iowa and Nebraska that is very
promising, and one o f the most favorable
seasons o f record in Montana and the
more western states fo r lambing and the
wool crop.
The summary notes that in the north­
west and middle west states, for eighteen
weeks from January 1st to May 7th, the
volume o f checks handled by banks in
thirty-three o f the more important centers
w a s $6,179,083,000 compared w i t h
$6,215,223,000 in the corresponding pe­
riod in 1929. This was a decrease o f less
than six-tenths o f one per cent. In con­
trast to this, 140 o f the largest cities o f
the United States during the same period,
exclusive o f New York, showed a decline
o f nine per cent.

Corporation Earnings
The net earnings o f 25 leading corpo­
rations in the first quarter o f 1930 were
almost 25 per cent less than they were in
the first three months o f 1929. They were
about 33 per cent smaller in the first
quarter o f this year than in the second
quarter o f last year. This may be stated
in still more simple fashion by noting
that fo r each four dollars that these cor­
porations earned in the first quarter o f
last year they earned only three dollars
in the corresponding period this year, and
that fo r each three dollars they earned in
the second quarter o f last year they earned
only two dollars in the first one o f this
year. The earnings referred to in these
comparisons are the net earnings available
fo r dividends on the common stock.

J

65
The co m p a n ie s f o r w h ich these figures
have been c o m p ile d in clu de m a n y o f the
g re a t leaders a m on g the in d u stria ls and
the u tilities, such as U. S. Steel, G eneral
M o to rs, G eneral E le ctric, and the A m e r ­
ican T e lep h on e and T eleg ra p h , and som e
o f the lea d in g ra ilroa d s, such as P e n n s y l­
vania, and the N ew Y o r k C entral. T h ey
con stitu te in the a g g reg a te a f a ir ly r e p r e ­
sentative sa m p lin g fr o m a m on g the c o r ­
p o ra te leaders in ou r n ation a l business a c ­
tivity. P r o b a b ly the recen t shrinkages in
th eir earn in gs have been rath er less severe
than those o f ty p ic a l sm aller com p a n ies
en ga ged in co rr e s p o n d in g lines o f w ork.
In the d ia gra m the u p rig h t colum ns r e p ­
resent the ag g reg a te n et earn in gs o f the
25 co rp o r a tio n s each q u a rter d u rin g the
p a st six years. The general tren d o f in ­
crease has been im p ressiv ely ra p id . The
average
q u a rte rly
earn in gs
in
1924
am oun ted to 109 m illion s o f dollars, w hile
five years la ter in 1929 th ey had advanced
to m ore than 285 m illion s, o r an in crease
in that b r ie f tim e o f som e 162 p e r cent.

are H a rle y L. C larke o f C h icago, p re s i­
dent o f the U tilities P o w e r an d L ig h t
C o rp o ra tio n , and S in cla ir R ich a rd son ,
p resid en t o f the K e ls e y -W ils o n T extile
C o rp o ra tio n o f N ew Y o rk .

Sympathy
I t w as the first real sn ow storm o f the
y e a r an d the tea ch er fe lt it h er d u ty to
w arn h er p u p ils b e fo r e she dism issed
them. “ B o y s an d g irls should be v e ry ca re­
fu l to avoid co ld s at th is tim e o f y e a r ,”
she began solem n ly. “ I h ad a d a rlin g little
broth er o n ly seven yea rs old. One d a y he
w ent ou t in the sn ow w ith h is n ew sled
and cau gh t cold . P n eu m o n ia set in and
in three days he w as d ea d .” The s ch o o l­
room w as quiet. Then a y o u n g s te r in the
ba ck r o w a s k e d : “ W h e re ’ s his sled ?”

M r. C larke, in a d d ition to h eadin g the
U tilities P o w e r and L ig h t C o rp o ra tio n ,
serves as an officer o r d irector o f m ore
than tw en ty-five u tility c o rp o ra tio n s, in ­
clu d in g ■electric ligh t, gas and street r a il­
w ay com pa n ies.
M r. R ich a rd son is also
v ice p resid en t an d trea su rer and a d irec­
tor o f the A m erica n B leached G ood s C om ­
p a n y , an d a d irector o f the L o rra in e M a n ­
u fa c tu rin g Co. o f P a w tu ck et, R . I., the
P on em ah M ills, P rov id en ce, R . I., and
S a yles’ F in is h in g P la n ts, S a ylesville, R . I.

“ W a s M au de in a b rig h t re d fr o c k at
the dance ?”
“ S om e o f her, d a rlin g ; som e o f h er.”

A N N O U N C E M E N T

The decrease in the first q u a rter o f 1930
is a n o ta b le one, f o r the fa ll fr o m the
record s m ade on e y e a r ea rlier am ounts to
23 p e r cent, and to som e 64 m illion dollars.

♦

All of the Capital Stock of
QUARTERLY EARNINGS
OF 2 5 CORPORATIONS
a v a il a b l e

fo r

Selected Shares Corporation

d iv id en d s

ON COMMON STOCK

Sponsors a n d N ational Distributors fo r

Selected American Shares
has been purchased by a group o f financiers who

Ü-------- —

w ill expand its activities in the investment trust
field . The complete B oard o f Directors, including

I

I 1924

the follow ing, w ill be announced-later
1925
1925

1926

1927

1928

MAX ADLER

1929 30

Director and Former Vice-President, Sears, Roebuck & Co.

N evertheless the earn in gs o f these 25 lea d ­
in g co rp o r a tio n s w ere la rg e r in the first
qu arter o f 1930 than in a n y oth er first
q u a rter e x ce p t that o f 1929, and g rea ter
than those o f an y qu a rter p r io r to the
sp rin g o f 1927.
The d is a p p o in tin g re ­
p o rts in earn ings d u rin g the first qu arter
la rg e ly a ccou n t f o r the recen t re a ction a ry
ten den cies in th e stock m arket, b u t the
rate o f g ro w th o f co rp o r a te earn ings
d u rin g the p e r io d covered b y the d ia gra m
accou n ts in la rge degree f o r the p ersisten t
bu ll m a rk et o f th ose same h a lf dozen
years.— F r o m C levela n d T rust C om p a n y
B u lletin .

Chairman o f the Board

ROBERT S. ADLER
President

ALVIN H. BAUM
Executive Vice-President

♦
Headquarters now established at
ONE

NORTH

LA

SALLE

STREET • C H IC A G O

Telephone Franklin 5640

will be formally opened at a later date

Elected Directors
T he A m e rica n E x p re ss B a n k and T ru st
C o m p a n y has a n n ou n ced tw o ad dition s to
its b oa rd o f d irectors. The n ew m em bers


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Federal Reserve Bank of St. Louis

Northwestern Banker

June 1930

66

Selected Shares Control Changed

Farms and Farming

A n ew g ro u p o f C h ica g o financiers
headed b y M a x A d le r, fo r m e r ly v ice p r e s ­
iden t o f Sears, R o e b u ck an d C om p a n y,
has been fo r m e d to en ter th e investm ent
trust field, it w as an n ou n ced recen tly.

(C on tin u ed f r o m p a g e 2 1 )

A s a n ucleu s the g ro u p has taken o v e r
the S elected Shares C o rp o ra tio n , sp o n s o r
o f S elected A m erica n Shares, a fixed in -

5V2%, Safety
and a

Payment PI an
O conservative is the type
of security offered by the
Investors Syndicate—

S

That your own appraisal would
lead you to expect a return of
about 4 1 / 2 % .
Instead, this Installment In­
vestment Certificate earns 5*/^%,
compounded annually, w h ich
over a period of years is the
equivalent of 6 ^ 2 %
simple
interest.
M ore than 1 7 5 ,0 0 0 individ­
uals and businesses are using the
Investors Syndicate Plan—
To build funds of from $ 1 ,000
to $10 0 ,0 0 0 by proportionately
very small payments.
A sk for informative booklet,
"En jo y M o n e y ." Use coupon.
Gentlemen: Send booklet, "E n jo y M on ey."
Name......................................................................................
Address.................................................................................

IN V E ST O K S
S

y n d i c a t e
F O U N D E D ♦1894
M I N N E A P O L IS

NEW YORK

O ffic e s in
51 C it ie s

LOS ANGELES

A sse ts O ver
$33,000,000

A A A A A A

Northwestern Banker June 1930

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

A L V IN

H.

BAUM

vestm ent trust listed on the C h icago B o a rd
o f T rade.
T he first act o f the Selected
Shares C o rp o ra tio n u n d er the new ow n er­
ship w ill be to take o v e r the n ationa l
d istrib u tion o f S elected A m erica n Shares
stock, w h ich has a d ea ler orga n iza tion
com p os ed o f m ore than 200 banks and
in vestm ent houses.
The n ew g r o u p p la n s im m ediate e x ­
p a n sion , a c c o rd in g to the announcem ent,
and a n ew in vestm ent tru st sp on sored b y
Selected Shares C o r p o r a tio n is ex p ected
to be fo r m e d and shares p u b licly offered
w ithin a short tim e.
M r. A d le r w ill be chairm an o f the b oa rd
o f Selected Shares C o r p o r a tio n an d his
son, R o b e rt S. A d le r, w ill be presid en t.
A lv in H . B aum , fo r m e r ly v ice p resid en t
and a d ire cto r o f S tra u s B roth ers In v es t­
m ent C om p a n y, fr o m w h om S elected
Shares C o rp o ra tio n w as acqu ired, w ill be
the d ire ctin g head, w ith the title o f ex ecu ­
tive v ice p resid en t and d irector. A s s o c i­
ated w ith th e co m p a n y w ill be H e rb ert
R u b el and E d w a rd P . R u b in , fo r m e rly
w ith Stra u s B roth ers In vestm en t C om ­
pany.
The person n el o f the b o a rd o f d ire cto rs
w ill b e a n n ou n ced sh ortly. O ffices f o r the
Selected Shares C o r p o r a tio n h ave been
op e n e d in the O ne N orth L a Salle
B u ild in g .

The r o b o t h as n ot r e p la ce d the m an
p o w e r n ecessa ry f o r c a r ry in g o n o f a g ri­
cu ltu ral p r o d u c tio n b u t the am ou n t o f
c ro p ten ded b y each m an has in creased
trem en d ou sly since 1920 and hence the
decrease in fa r m p o p u la tio n .
D E B A T E that to o k p la ce a fe w w eeks
ago in W a sh in g to n h as aw akened echoes
th rou gh ou t the a g ricu ltu ra l w est.
The
U n ited States C h am ber o f C om m erce w ent
on re co rd as o p p o s e d to th e a ctivities o f
the fe d e ra l fa r m b oa rd an d recom m en d
that it be sh orn o f its p o w e r. C hairm an
A lex a n d er L eg ge, o f the fa r m b oa rd , cam e
to the d efen se o f that o rg a n iz a tio n as
did J oh n B ra n d t, o f M in n esota , p r e s i­
dent o f the L an d O ’ L akes Cream eries, an d
A rth u r M . H y d e , o f M issou ri, secreta ry
o f a gricu lture.
C ham bers o f com m erce in m a n y tow n s
o f the m id d le w est as w ell as fa r m o r g a n ­
iza tion s h ave com e since to th e a id o f
L e g g e in d e fe n d in g the p r o g r a m o f the
fa r m b oa rd . U g ly w ord s are b e in g hurled
at the n ation a l bu siness o rg a n iz a tio n f o r
its alleged attem pts “ to stra n gle the on ly
a g en cy the fa rm ers h ave to m ake effective
f o r th eir in d u stry the sam e k in d o f as­
sistance fo r m e r ly av a ila b le o n ly to o rg a n ­
ized bu siness.”
M ean w h ile the fa rm ers o f th e m id d le
w est are n ot as rea d y in acce p ta n ce o f
som e o f the p r o g r a m o f the fa r m b oa rd
as th eir com p la in ts against the U n ited
States C h am ber o f C om m erce m igh t in d i­
cate.
The liv e stock m a rk etin g p la n as
an n ou n ced recen tly has draw n the c o n ­
dem nation o f the F a rm e rs U n ion m a rk et­
in g a g en cy as w ell as oth ers loca ted in
St. P a u l, M ilw au kee and St. L ou is. State
org a n iz a tion s in Io w a and som e oth er
states are said to be lu k ew arm in th eir
attitu d e to w a rd the liv e stock m a rk etin g
p la n o f the fe d e r a l fa r m b oa rd .
B A N K E R S , fa rm ers, la n d a p p ra isers,
m o rtg a g e loa n m en and fa r m m a na gers
m et at Io w a S tate C ollege re ce n tly to c o n ­
sider w a y s and m eans o f soil con serva tion
and la n d v alu ation . The m ain to p ic u nder
discu ssion w as soil erosion w hich is r e ­
su ltin g in the tra n sfere n ce o f m yriad
ton s o f the best soil in the m id d le w est
fr o m the h illto p s and hillsides to th e M is ­
souri and M iss iss ip p i r iv e rs and thence
to the delta o f the la tter r iv e r in southern
L ou isian a.
The p ro b le m m u st be m et b y b etter c r o p
rota tion s and soil m a n a gem en t w hich im ­
p rov es the hum us con ten t o f the soil an d
b y te rra cin g o f hillsides to p re v e n t w ash ­
in g,
th ose
a tten d in g
th e
c o n fe re n ce
learned.
“ T om m y, can y o u tell m e one o f the
uses o f c o w h id e ? ”
“ E r, y e s s u r : I t k eep s the co w to g e th e r.”

67

T o Members of the
IO W A ST A T E BANKERS
ASSOCIATION
You Are Cordially Invited to Use Our Offices As your
Headquarters During Your Visit to
Davenport, June 16-18

A S IO W A ’S oldest and largest bond house, we take special
^ ^ pleasure in welcoming you to Davenport, and we cordially
invite you to make use of our offices as your headquarters
during the sessions of the State Convention.
During our thirty-nine years of experience as specialists in
Iowa Municipal Bonds, our associations with Iowa bankers
have been exceedingly close.

Our first customer was an Iowa

banker, and it says much for the quality of our service that
the bank with which he was associated is still among our
valued clients.
W e hope that you will feel free to make the fullest use of
our facilities while here and that you will give our officers
an opportunity of becoming personally acquainted with you.

Geo.M.Bechtel ÓT Co.
Established

1891

Bechtel Biulding, Davenport,Iowa.
First Iowa Trust Building
Burlington

I O W A ’ S


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

O L D E S T

Equitable Building
Des Moines

A N D

Grand Opera House Building
Dubuque

L A R G E S T

B O N D

H O U S E

Northwestern Banker

June 1930

68

Casualty Insurance?

Yes!
Surety Bonds?

Certainly!
Service?

Absolutely!
W rite to

FEDERAL SURETY COMPANY
W. L. TAYL OR
President

Home Office
Northwestern Banker


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

June 1930

«

«

»

»

Davenport, Iowa

69

Legal Department
(C o n tin u ed fr o m p a g e 2 3 )
n eith er re q u ire d n or dem an ded th a t the
bank start suit.
“ U n d er the la n g u a ge o f the statute the
requ irem en t to sue m ust be u n co n d i­
tio n a l,”
said
the
A rk a n sa s
S u prem e
C ou rt.
“ It con tem p la ted a p e r e m p to ry
requ irem en t o f the su rety to the cre d ito r
to com m en ce suit fo rth w ith . T h is notice
is m erely a d visory .
It does not con ta in
a dem an d n o r requ irem en t f o r the c re d ­
it o r fo rth w ith to com m en ce suit.
I f he
(th e c re d ito r) w ish ed to exon erate h im ­
s e lf fr o m lia b ility he m ust g iv e such
n o tice as to leave n o o p tio n w ith the
p a rty n o tifie d ,” the cou rt said.

Branch Banking for Country
Towns

Iowa Bond Corporation
Investment Securities

5tli Floor Insurance Exchange Bldg.
DES

MOINES

Specializing in Securities
Most Suitable for Your Banks
Investment Account

(C o n tin u e d fr o m p a g e 2 4 )
cha nge and m o rtg a g e revenues elim inated.
B a n k s w ere fo r c e d ou t o f business.
In
tu rn, th eir com m u n ities suffered. W h e n a
fa rm e r ca n n o t get his g ra in check, f o r
exa m p le, cashed in his n ea rb y villa ge, he
takes it to a tow n w here there is a bank.
A n d he sp en d s his m on ey there. So the
sm aller com m u n ity su ffers because o f the
business it has lo s t.”
W ith stron g, cen tra lly loca ted banks
allow ed to establish b ran ch offices in
n e ig h b o rin g villa ges, ev ery com m u n ity
th at has an y w orth w h ile b a n k in g business
cou ld be assured o f an in stitu tion to handle
that business, M r. J a ffra v ex p la in ed . Then
there w ou ld be no n ecessity o f a fa r m e r
g o in g som ew h ere else to g et his m on ey
and sp en d it, he added. The m on ey w ou ld
stay at h om e an d e v ery citizen and b u si­
ness in stitu tion o f the sm aller p la ce w ou ld
be benefited.
C om m ission er V e ig e l su ggested that the
v illa g e bran ch es o f cou n ty seat banks be
m erely offices f o r rece iv in g dep osits and
ca sh in g checks. M r. J a ffra y fa v o r e d le g is­
la tion w h ich w ou ld p e rm it the p r o p o s e d
branches to o ffe r a m ore co m p lete b a n k in g
service to th e ir com m u n ities.
T h e im ­
p o r ta n t th in g, h ow ever, he says, is that
reliab le b a n k in g service be m ade available
to com m u n ities w hich n eed it, bu t w hich
are n ot b ig en ough to s u p p o r t in d e p e n d ­
ent banks on a basis o f p rofit.

Joins Northwest Bancorporation
T h e F ir s t N a tio n a l B a n k o f P h ilip ,
S. D ., r e c e n tly b eca m e affiliated w ith th e
98 o th e r b a n k s an d tru st co m p a n ie s in
th e N o r th w e s t B a n c o r p o r a tio n g ro u p .
T h e P h ilip b a n k h as re s o u rc e s o f $644,000 an d d e p o s its to t a lin g $571,735.
C o m b in e d re s o u rc e s o f th e 99 in s titu ­
tio n s in the g r o u p a m ou n t to $4 83 ,0 00 ,000.
J. C. N e ls o n is p r e s id e n t o f the
P h ilip b a n k .


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

Represented by
GEORGE D. THOM PSON

J A M E S C. E N Y A R T

BABCOCK, RUSHTON
& CO M PAN Y
Established in 1895
C H IC A G O

NEW YO R K
D E S M O IN E S

STO C K S
G R A IN

B O N D S
&

P R O V IS IO N S
Members

New York Stock Exchange
Chicago Stock Exchange
Chicago Board of Trade
DES MOINES OFFICE, Second Floor, Fleming Bldg.
Phone: Dial 4-5121
Laverne M. Barlow, Resident Manager
D IR E C T P R IV A T E W IR E S

Orders Executed In All Markets

Northwestern Banker

June 1930

Our Juvenile Contracts Are
Fast Sellers


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

g y
---------- ---------------—

Approximately one-third
of the population of our
country is made up of chil­
dren under fifteen years
of age.
One-third of the possible
prospects for life insur­
ance in every community
are, therefore, children.
Royal Union salesmen
may write children from
one day old and up, and
without physical examina­
tion.
Our Juvenile contracts go
automatically into full
benefit at age five.
Royal Union Life Building
Corner Seventh and Grand Avenue
Des Moines, Iowa

1

f

71

Insurance
W e have show n
1. T h e
in su red
b riefly the h azards
s u d d e n l y fa d e s
o f a cash lu m p sum
fr o m
the
p ictu re
estate. T h e a d va n ­
an d the w id o w r e ­
ceives a check fr o m the lif e in ­
tages o f the in com e m ethod are
obviou s, bu t the m ost im p o rta n t
surance co m p a n y .
She settles
w hat bills m a y be ou tsta n d in g
are b riefly as fo llo w s :
1.
T h ere is no need
a fte r d e p o s itin g the check in her
w id ow ’ assum ing an y re sp o n sib il­
hank and w aits to in vest the
ity , n or is there an y dela y in the selection
balance, th ereb y im m edia tely losin g the
B y WM. DeLOSS LOVE
o f investm ents.
The estate is alw ays at
benefits to be d eriv ed fr o m p u ttin g this
General Agent, Connecticut Mutual Life
interest.
ca p ita l sum to w o rk at once.
She m ay
2. The in com e can he a definite am ount
even sp en d som e o f the p r in cip a l as in ­
w ith it. W e do not qu estion an y w om a n ’ s
and at definite intervals.
com e w ith o u t re a liz in g it.
a b ility , bu t we do attem p t to p o in t ou t
3. T h e fa m ily m ay establish a scale o f
2. The m in u te we lea ve ou r life in su r­
that there is an ob v iou s la ck o f tra in in g
liv in g as this in com e is definite an d certain
ance in a cash lu m p sum , we w ill alw ays
in th eir investm ent ju d g m en t. L et us ask
in advance.
tu rn o v er to u n tra in ed hands m on ey f o r
this q u e s t io n : A r e an y g o o d investm ents
4. There is the ad va ntage, at p ra ctica lly
investm ent. The recen t ex p erien ce in the
p erm a n en tly s a fe ? Is it p ossib le f o r an y
no cost, o f corp o ra te service and r e s p o n ­
stock m arket w o u ld seem to in d icate that
w id ow to w atch her investm ents d a y by
sib ility as against that o f th e in dividu al.
fe w , i f any, o f us are able to in vest m on ey
5. The arriva l o f this in com e check is
d a y and m ake such r a p id changes as ofte n
w ith ab solu te secu rity o v er a lo n g p e r io d
au tom atic an d o fte n on ly d epen den t u p o n
becom e n ecessary to m a in tain a given
o f tim e. W h y then p la ce this bu rden or
in co m e ? P lease rem em ber th is w id ow in ­
the arriva l o f the m ail m an at y o u r fr o n t
r e sp o n sib ility u p o n a w id o w w ho is n ea rly
d oor.
v a ria b ly has the care and edu ca tion o f her
alw a ys u n tra in ed an d en tirely u n fa m ilia r
6. N o cre d ito r can attach the p rin cip a l
ch ildren as her m a jo r p rob lem . W e do
w ith the relative m erits o f one fo r m o f
n or can these in com e p a ym en ts b e draw n
investm ent again st another.
T o w hom
believe that the trust com p a n ies and in ­
in ad va nce o f th eir du e date.
surance com p a n ies o f this co u n try are set
shall she g o f o r a d v ic e ? L et us su p p ose
Delay is decidedly dangerous. It is our
u p to d isch arge such a resp on sib ility and
that y o u have design ated som eone w ith
observation that very few people intend
that it can m ore a d va n ta g eou sly be given
w hom she m a y consult. W h a t assurance
to turn over these shoAvers o f cash to their
them .
have y o u that that som eone w ill be here
5.
L e t us assum e f o r a m inu te that th is beneficiaries, but the actual arrangement
to g ive her the p r o p e r k in d o f g u id a n ce ?
o f this distribution is one Avhich requires
w id ow does g et g o o d sou n d a d vice in the
W h a t b etter con su ltan t cou ld y o u g iv e her
considerable time and thought and con­
investm ent o f this estate as, f o r exam ple,
than the p e rm a n en t hank, trust com p a n y ,
sequently they postpone from day to day
the ad vice o f an ex p ert w ho tod a y gives
o r in su ran ce co m p a n y ? The p o in t is this :
the creation o f this income
Y o u and I in the crea tion
plan. W e Avould point out
o f this estate have u n d er­
“Any income plan, however imperfect, and however far
that any income plan, how­
taken to re p la ce o u r own
ever imperfect and how­
from your desire is better than none at all and you will always
earned incom e, O b v iou sly
ever far from your desire
we have fa ile d i f w e do n ot
be at liberty at any time to make such changes and corrections
is better than none at all
arran ge f o r the in vestm en t
in this income plan as circumstances may require!”
and you Avill always be at
o f this in su ran ce estate.
liberty at any time to make
3. O ur re co rd s show that
her a list of securities to purchase which
such changes and corrections in this in­
v ery, v e ry o fte n w hen these cash lu m p
are admittedly sound. Let us assume a
come plan as circumstances may require.
sums o f m o n e y are receiv ed b y b en efici­
variety of stocks are purchased. Time
aries, relatives a p p e a r u p o n the scene w ho
goes on and changing conditions may
are eith er ill, in debt, or in need o f m on ey
Elected President
mean the reduction of dividends from
f o r one th in g o r another. L ikew ise, th ey
Th om as F . W a lla ce , m em ber o f the
these stocks, or the passing of these divi­
b o rro w this m o n e y to p u t in to som e b u si­
B o a rd o f D irectors, and o f the F in a n ce
dends altogether.
What is the result ?
ness venture.
W e do n ot qu estion the
an d E x ecu tiv e C om m ittees o f the N o rth ­
Where is that income Avhich you and I
m otive o f these relatives, bu t w e d o say
w estern N a tion a l L ife o f M in n e a p o lis, Avas
have attempted to guarantee this widoAV
that in v a ria b ly these estates are either
elected p resid en t o f the N a tio n a l A s s o c ia ­
through the medium of life insurance?
p a rtia lly o r c o m p le te ly lost. T h e in com e
tion o f M utual S a vin gs B ank s at the a n ­
m ethod w h ereb y one arran ges f o r the in ­
6. In vieAV of the recent events in Wall
nual con v en tion at A tla n tic C ity.
M r.
vestm ent o f this estate in advance, saves
Street, you Avill probably not be surprised
W a lla c e is presid en t o f the F a rm ers and
y o u r w id o w fr o m th e em barrassm ent o f
to hear that a large percentage of insur­
M ech an ics S a vin g s B a n k o f M in n ea p olis,
re fu s in g such a request.
ance money is used for pure stock specula­
h avin g ov er $65,000,000 in resou rces.
4. W e w ho d a ily m eet the in su rin g p u b ­
lic find that a g rea t m a n y m en have u n ­
lim ited con fid en ce in th eir Avives’ ju d g ­
m ent to in vest this p r in cip a l sum an d we
are u na ble to persu a d e them that such a
sh ow er o f cash is n o t the w isest and sa fest
m ethod o f d istrib u tion . A s a m a tter o f
fa c t, w e do n o t believe m a n y w ives w ou ld
w an t this re sp o n sib ility , i f th ey realized
the am oun t o f ca re and Avorry con n ected


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

tion. It would almost seem that there is
an element of fate in such cases as the
result of such stock speculation is invaria­
bly a total collapse of this estate. These
cash estates sometimes find their way into
the hands of swindlers Avith obvious re­
sults. Often they are entrusted to rela­
tives Avho cannot repay. Again they are
often spent lavishly on children, in per­
sonal extravagance, and for other reasons.

M r. W a lla ce is the first p re sid e n t o f the
A s so cia tio n to be elected fr o m w est o f the
A llegh en ies.
A b o u t 600 m utual savin gs
banks o p e ra tin g in 17 states and r e p r e ­
sen tin g ab ou t $12,000,000,000 in resou rces
com p ose this n ation a l orga n iza tion .
A t on e tim e M r. W a lla ce w as p re sid e n t
o f the S a vin g s B a n k section o f the A m e r ­
ican B ankers A s socia tion . H e w as elected
to N avN L’s B oa rd o f D irecto rs in 1924.

Northwestern Banker

June 19SO

of

the

*4Earnings Insurance”

Now
Open
IN

NEW YORK

%
M otel

“ B u siness In te rru p tio n In su ra n ce,” o r
“ U se and O ccu p a n cy In su ra n ce” as it is
term ed in in su ran ce circles, is b e in g c a r ­
ried in in creased am ounts and by m ore
and m ore con cern s, a c c o rd in g to th e C on ­
tinental In su ra n ce C o m p a n y
of
N ew
Y o rk , w hich has been m a k in g a sp ecia l
stu d y o f this fo r m o f earn ings p rotection .
The com p a n y finds an u n u su ally la rge
n u m ber o f c o rp o ra tio n s are n ow s a fe ­
g u a rd ed by this fo r m o f covera g e against
loss o f overh ead expenses and net p rofits
in the event o f fire, torn a d o, o r oth er d is­
asters w hich w ou ld cause a cessa tion o f
p la n t op era tion s.

Governor,
(LINTON
O P P O S IT E

P i : \ .\ A .

S T A T IO N

New Y o r k ’s new
h o tel truly e x ­
p ressive o f the
greatest city. 1200
W M . F. D O O L E Y

p leasant

ro o m s

each with Servi­
dor, hath, circula­
ting ice water and
radio provisions.
ROOMS

*3

E. C. KILL, General Manager

31st

Street

“ This class o f in su ran ce,” said W illia m
F . D o o le y , v ice-p resid en t o f the C on tinental, in com m en tin g u p o n presen t f a c ­
tors a ffectin g “ use and o c cu p a n c y ” c o v e r ­
age, “ is a develop m en t o f m od ern b u si­
ness that w as origin a ted a co m p a ra tiv ely
fe w years ago to p ro te ct in com e. It has
been a d op ted b y m a ny o f the la rg est c o r ­
p ora tio n s in the cou n try, in clu d in g the
lea d in g au tom obile m a n u fa ctu rers, Avhich
n ot on ly in su re th eir ow n op era tion s, bu t
also p ro te ct them selves a gainst losses re ­
su ltin g fr o m the in a b ility o f com p a n ies
s u p p ly in g them w ith p a rts and accessories
to m ake deliveries because o f fire o r oth er
calam ity.
T his p ra ctice g rew ou t o f an
ex p erien ce several years a g o su ffered b y
one o f the la rg e m o to r car p rod u cers
w hich was unable to com p lete its cars and
m ake sh ipm ents because its b o d y m a k er’s
p la n t had been bu rned to the g rou n d .
“ A n o th e r in terestin g develop m en t has
been ‘ use and o c cu p a n c y ’ in su ran ce p u r ­
chased b y several m a ga zin es that n ot on ly
covers their overh ead expenses in case
th eir m a ilin g o f com p leted issues is in te r­
ru p ted b y fire o r oth er con tin g en cy , but
also reim burses them f o r an y m on ey
w hich th ey m ight have to re fu n d to a d ­
vertisers.
“ ‘ Use and o c cu p a n c y ’ in su ran ce covers
earn in gs rath er than fixed assets. N o w a ­
days it is n ot as n ecessary as fo r m e r ly f o r
a business to m ain tain huge in ven tories
ow in g to the fa ster deliveries m ade p o s ­
sible b y better tra n sp orta tion fa cilities.

Northwestern Banker June 1930


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

“ W h ere fire in su ran ce and certain oth er
fo r m s o f covera g e p ro v id e in dem n ifica­
tion s f o r da m aged in ven tories, b u ild in gs
and oth er ta n g ib le assets, ‘ use and o c cu ­
p a n c y ’ sa feg u a rd s the earn in gs n orm a lly
g ro w in g out o f the use o f such assets and
p ro v id e s fu n d s to k eep n ecessary w o rk in g
fo r c e s in ta ct d u rin g a p e r io d o f e n fo rce d
idleness.”

Coolidge Anniversary
F o r m e r P resid en t C a lvin C o o lid g e has
com p leted his first y ea r as an in su ran ce
m an.
H e w as elected a m em ber o f the
b o a rd o f d irectors o f th e N ew Y o r k L ife
In su ra n ce C om p a n y at the M a y m eetin g
in 1929, and since that tim e has served
as chairm an o f the a g e n cy com m ittee,
w hich has su p ervision o f the m ore than
10,000 agents o f the com p a n y .
H e has
taken an intim ate and p e rso n a l interest
in the details o f the c o m p a n y ’s business.
H e w as absent fr o m o n ly tw o b o a rd
m eetin gs d u rin g the year, on ce last springw hile on a trip to the fa r west, and on ce
in J a n u a ry w hen he le ft w ith oth er d ire c­
tors and officers to address a m eetin g o f
a g en cy d irectors in F lo rid a . H is address
at that tim e en titled, “ T h e E co n o m ics o f
L ife In su ra n ce,” w as broa d ca st o v e r a
n ation a l r a d io h ook -u p .

In a letter commenting upon his anni­
versary, received by President Darwin P.
Kingsley, Mr. Coolidge Avrote as folloAVS:
“ My Dear Mr. Kingslej^:
“ On this anniversary of my election to
the board of the NeAV York Life you may
be interested to know that a year’s inti­
mate acquaintance Avith the personnel and
methods of the company has confirmed the
confidence A\Thich led me to accept your
invitation to become a director in May,
1929.
“ E v e ry forA va rd -lookin g citizen ou gh t
to p ro te ct h im self and his fa m ily b y life
in su ran ce.
I f he selects the NeAV Y o r k
L ife as such a m ed iu m o f p r o te c tio n he
m ay rest assured that his in vestm ent Avili
have all the sa fegu a rd s that sound fin an ­
cial m anagem ent and a scru p u lou s sense
o f tru steeship can p ro v id e .
“ Y o u r s v e ry tru ly,
(S ig n e d ) “ C a lvin C o o lid g e .”

Limits Increased
The am ount o f in su ran ce that w ill be
Avritten on a n y on e life b y the N o rtliAvestern N a tion al L ife o f M in n e a p o lis h as
been raised fr o m $100,000 to $250,000 a c­
c o rd in g to an an n oun cem en t m ade b y the
hom e office o f the com p a n y .
W h ile the co m p a n y has fr o m tim e to
tim e a ccep ted a p p lic a tio n s an d issued
p olicies f o r am ounts con sid e ra b ly in e x ­
cess o f $100,000, this is th e first definite
an n oun cem en t to that effect.
The neAV
m axim um in cludes cu rren t a p p lica tio n s
and pre\Tious insurance.

73

W here "C o o p e ra tio n
Is More than a By-Word
) )

The Des Moines Life agent in your community is equipped to service
your patrons intelligently and completely.
He lias modern, progressive policies fitted to the insuror’ s needs.
He knows how to arrange a most comprehensive insurance program and
provide the proper settlements that meet the personal requirements of
the individual insurance buyer.
He understands the value of complete follow up service to policy­
holders and keeps the loss provoking lapse ratio down to a minimum by
constant attention to the policyholder’s interests.
Reinforcing the agents co-operation with his policyholder is the home
office helps to the agent through personal selling help; prompt, obliging
service, and constant contact with each agent and his policyholders.
Look up the Des Moines Life representative. Y ou ’ll find him able
to give the service you want your depositors to have.

Des Moines Life & Annuity Company


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

J. J. SHAMBAUGH, President

Des Moines, Iowa

Northwestern Banker June Î930

Delivers Insurance Lectures

p ro x im a te ly .$170,000 and takes o v er
assets co v e rin g th e lia b ility , the sto ck ­
h olders r e ce iv in g the b a la n ce o f assets
a b ove the d ep osit lia b ility .

The general b a ck g rou n d o f life in su r­
ance trusts, the fu n d a m en ta l p r in cip le s
u p o n w hich th ey are built, and m a ny other
aspects o f the su b je ct w ere co v ered b y
E a rle L. H a rra h , assistant secreta ry o f the
F o re m a n -S ta te T ru st an d S a vin gs B ank,
in a series o f fo u r lectu res d elivered last
m onth b e fo r e the N orth w estern U n iv ersity
S ch o o l o f L aw . M r. H a rra h an alyzed the
v a rio u s k in ds o f life in su ran ce tru st agree­
m ents, the ta x a b ility o f life in su ran ce
u n der the Illin o is in h erita n ce ta x law s and
the fe d e ra l estate tax law s, and the effect
o f certain p ro v isio n s w ith in a tru st a g ree­
m en t that w ou ld m ake it taxable.
In la ter lectu res he covered the su b ject
o f the Illin o is la w against a ccum ula tion ,
citin g le a d in g cases, and the prereq u isites
set dow n b y Illin o is law f o r orga n iza tion
o f tru st com pa n ies.

Blanket Fidelity Bonds

EABLE

L. H A B B A H

T he ad va ntage o f u sin g a co rp o ra te
fid u cia ry rath er than an in d iv id u a l fid u ­
cia ry was g o n e in to also. The p r in cip a l
ad vantage, M r. H a rra h p o in te d ou t to the
la w students, is the fa c t that an in d iv id u a l
ca n n ot possess the con tin u ity o f existence
w hich is p o s sib le in a c o rp o r a te fidu ciary.

the M erchants N a tion al
C om p a n y o f F a r g o , N .
the F irs t B a n k S tock
been an n oun ced b y P .
p resid en t and gen eral
h old in g com p a n y .

M r. H a rra h illustrated h is lectu res w ith
sp ecific exam ples o f w hat the F orem a n State T rust and S a vin gs B a n k d oes in a d ­
m in isterin g tru st estates.
C on solid a tion o f the A rg u s v ille S tate
Bank and the M a p leton S tate B a n k w ith

A rg u s v ille and M a p leton are Cass
cou n ty tow n s w hich, w ith the d e v e lo p ­
m ent o f g o o d road s, have becom e su b u r­
ban to F a r g o , the cou n ty seat.
The M e r­
chants N a tion al assum es th e
dep osit
lia b ility o f the tw o banks, to ta lin g a p ­

B a n k an d Trust
D ., an affiliate o f
C o rp o ra tio n , has
J. Leem an, v ice
m a n a ger o f the

A s a result o f loss exp e rie n ce in v o lv in g
m uch u nderin su ra n ce, and the m ission a ry
w ork o f agen ts an d u n d erw riters, the
blan ket fidelity b on d is b e com in g an in ­
cre a sin g ly p o p u la r fo r m o f p ro te ctio n
w ith banks and oth er c o rp o ra tio n s, a c c o r d ­
in g to W a d e F etzer, p resid en t o f the
F id e lity and C a su alty C o., o f New’ Y o rk .
The custom o f p la cin g bon d s in sp ecific
am ounts on d esign ated em p lo ye s, this e x ­
ecutive stated, has o fte n been fo u n d w a n t­
in g, either because p o licie s have p ro v id e d
in adequate in d em n ity, or becau se som e em ­
p loy es n ot covered b y b o n d have p r o v e d
to be the ones g u ilty o f th eft.
B esid es g iv in g an em p lo y e r co m p lete
p ro te ctio n , rega rdless o f w hich m em ber
of
his
staff
becom es
dishonest,
the
blanket b on d , b e in g issu ab le in a m inim um
am ount o f $10,000, also ten ds to p reven t
underin su ran ce.
In ad dition , the m ore
com p reh en sive cov era g e m akes p o ssib le a
low er p e r th ou san d prem iu m rate f o r the
la rg e r am ounts.
U n derin su ra n ce is o fte n a serious, and
som etim es a fa ta l, m a tter to a bank, or
oth er assured, w hen a h eavy claim d e ­
v elop s, as the co m p a n y ’ s re co rd s clea rly
show .
T a k in g as ty p ic a l e x a m p les, a

O v er $ 1 , 0 0 0 , 0 0 0 Cash Surplus
N A D D ITIO N to the new flat rate hail policy the Farmers Mutual is
now putting out a full coverage attractive automobile policy— Fire,
Theft, Wind, Hail, Transportation, Property, Liability and Collision cov­
erage.

I

This is being written at a price which should interest any hanker who
writes this protection. $1, 202,149.77 hack of every policy issued.
Paid in losses in 1929 $589,045.02 with a lower cost than any other asso­
ciation doing business in Iowa maintaining a surplus. Auto agents needed
everywhere.
FARMERS M U TU A L H A IL INSURANCE ASSOCIATION OF IO W A
722 Sixth Ave., Des Moines, Iowa

Northwestern Banker


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

June 1930

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

75

U p 'todate banks install modern bookkeeping
equipment to meet the demands o f the speed
and volume required by modern civilisation.
N one o f us w ould voluntarily revert to the
laborious methods o f a half century ago.
Yet many bankers today are not convinced
that the bank fixtures installed by their grand'
fathers are as inadequate to meet modern
speed and volume as the hand'entry method
o f bookkeeping.

But others are finding that Fisher Fixtures
facilitate the handling of volume business and
in addition give to a bank an atmosphere
of modernity demanded in an up'tO'date
institution.

Ç

J /

ie

^

h

J is

n

e

BAN K FIXTURE H E A D Q U A R T E R

d e a r ie s (Piti), 7a.

Northwestern Banker

June 1930

76

A n announcem ent of
N orth w estern N ation ­
al’s new M odified L ife
P olicy w ith A d ju stm en t
P rivileg es— a non-par­
ticipating policy with
life
exp ecta n cy com ­
puted on the modern
A m erica n M en Table.

P r o b l e m
S olved
jL 0 MEET the insistent
demand for a plan of life in­
surance which permits the
insured, in the early days of
his contract, to carry his in­
surance at a premium lower
than that of a Whole Life
policy, and still provide him
with insurance for his entire
lifetime, the Northwestern
National Life has brought
out its new Modified Life
policy
wi th
Adjustment
Privileges.
This policy is issued at a
premium only slightly higher
than that for term insurance,
with the AUTOM ATIC ad­
justment to a permanent
premium postponed for many
years. The privilege of ad­
justing to a permanent rate
on very favorable terms is
available from the tenth year.
Whenever the change is made
it is done at a rate substan­
tially lower than the NET
American Experience Table
rate at the attained age.

Use of American
Men Table
The automatic adjustment
is fixed at seven years prior
to the life expectancy of the
insured, according to the
new American Men Table of
Mortality. A t that age, in­
stead of the automatic ad­
justment to a permanent
Whole Life plan for the full
face amount, he is privileged
to reduce the amount of in­
surance on the Whole Life
plan and pay a premium ap­
proximately the same as the
original premium.
Or he
may pay exactly the original
premium and continue the
policy in force for its full
original amount for the bal­
ance of his life expectancy
period, and then receive its
then cash value.

dozen cases o f losses su ffered b y banks
th rou gh the d efa lca tion s o f tellers and
officers, it was fo u n d that against p e cu la ­
tion s a g g re g a tin g $597,360, b on d s o f o n ly
$135,000 had been c a r rie d ; fifteen m er­
cantile com p a n ies in v a riou s lines w ere
rob b ed o f $350,408 b y dishonest em p loyes,
had been o p e ra tin g w ith p ro te ctio n o f
o n ly $92,500. A n o th e r in stan ce in volved
a trust officer o f a b a n k in g in stitu tion
b on d ed f o r $5,000, w ho m a na ged to d ivert
$300,000 to his ow n p ock et.
Som e com p a n ies w ritin g blan ket fidelity
bon d s do n ot exercise the same degree o f
care in in vestig a tin g the re co rd s and
habits o f w ork ers in su red u nder such
p olicies as th ey do w hen c o v e rin g sch ed­
uled m em bers o f a staff, becau se o f the
grea ter sp rea d o f risk. The F id e lity and
C asualty C o., how ever, in the interests o f
sound u n d erw ritin g as w ell as to p ro te ct
em p loyers, checks u p on all em p loyes,
w hether they insured en b loc o r otherw ise,
and rega rdless o f th eir p osition s.

I f y o u d o n ’t believe that the bankers o f
Io w a have a lot o f push, y o u sh ou ld have
seen those 21 m em bers o f the p a rty , ab ly
com m a nd ed b y C. C. J a cob sen , p u sh that
23,000 p o u n d bus o v er tw o hills w hen the
engine fa ile d to m ake the gra d e on a d irt
roa d betw een L eon and Shenandoah. T w o
tons o f bankers certa in ly have a lot o f
“ v o-h ea v e” to them w hen the o cca sion de­
m ands it.

T h is p ra ctice is fo llo w e d because o f the
p o s sib ility o f an e m p lo y e in a su bord in ate
p os ition a ctin g in collu sion w ith som e p e r ­
son n ot con n ected w ith his p la ce o f em ­
p loy m en t to com m it a ro b b e ry . C rim inal
arran gem ents o f this k in d have fea tu red
certain cases o f secu rity th efts in b r o k e r ­
age offices w here p seu d o em p loyes have
obtain ed stocks and bon ds fr o m m es­
sengers ow in g to their k n ow led g e obtain ed
fr o m “ inside in fo rm a tio n .”

E.
C. F ish b au gh , p resid en t o f the Se­
cu rity T rust & S a vin g s B a n k , en tertained
the p a r t y m ost r o y a lly at a steak din n er in
S henandoah, and en gin eered the trip
th rou gh th e H e n ry F ie ld and E a rl M a y
stations. A lth o u g h the b u s w as an h ou r
late and the bankers w ea ry fr o m th eir
p h y s ica l exertion s, the ev en in g sp en t in
that ch a rm in g city w as m ost e n jo y a b le .

Billion in Payments
A n n ou n cem en t is m ade b y P resid en t
M o rg a n B. B ra in a rd o f the A e tn a L ife
an d affiliated in su ran ce com p a n ies that
since orga n iza tion , th e A e tn a com p a n ies
have retu rn ed to th eir p o licy h o ld e rs in
excess o f $1,000,000,000. The an n ou n ce­
m ent states that on M arch 31, 1930, there
had been p a id to A etn a p o licy h o ld e rs in
all lines the sum o f $1,019,904,000.
Of
this the A etn a L ife In su ra n ce C om p a n y
has p a id to its p o licy h o ld e rs in eigh ty
years $829,497,000, o f w hich $626,316,000
was p a id b y the life d epa rtm en t and $203,181,000 b y the a cciden t and lia b ility d e­
pa rtm en t, the balance o f $190,407,000 w as
p a id b y the A etn a affiliated com pa n ies.
The A etn a L ife is the o n ly m u ltip le line
insurance orga n iz a tion in A m e rica w h ich
has p a id to its p o licy h o ld e rs in excess o f
$1,000,000,000. S om e idea o f the m a g n i­
tu de o f these p a ym en ts b y the A etn a L ife
m a y be gain ed fr o m the com p a ris o n that
i f p a id ou t in d o lla r bills and la id end to
end, th ey w ou ld exten d n ea rly fo u r tim es
a rou n d the g lob e.

Iowa Group Meetings Best Ever
(C on tin u ed fr o m p a g e 2 7 )

No r t h w e s t e r n Na t io n a l
LIFE INSURANCE COMPANY
O .J . A R N O L D , President

S T R O N G - ' Minneapolis.Minn. - 'L I B E R A L

Northwestern Banker


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

June 1930

w in d ow d is p la y in th at city . H e had close
com p etition , h ow ever, as tw o oth er m em ­
bers o f the p a rty cam e w ith in 17 o f the
lu ck y num ber.

One o f the m ost in terestin g side-lights
o f the bus tr ip w as the v isit to the b r o a d ­
ca stin g station o f the H e n ry F ie ld Seed
C om p a n y.
A lth o u g h a m a jo r ity o f the
m em bers w ere severely afflicted w ith
“ m ik e -fr ig h t” w hen it cam e th eir tu rn to
an n ou n ce th eir sentim ents to the w o rld at
large, C larence D ieh l did h im se lf p r o u d
w ith his presen ta tion . H e n ot o n ly gave
a w o n d e rfu l little talk but clin ch ed his
p o in t b y q u otin g fr o m Jam es W h itco m b
R iley.

Sa ilors, w ith th eir sw eethearts in ev ery
p o rt, have n oth in g on bus drivers. T h ey
have one in ev ery tow n . I t m a y be the
allure o f a n a tty u n ifo rm , o r it m a y be
“ p e rso n a lity .” B u t w h a tever it is, it ce r­
ta in ly is effective.
B u t th ere is on e th in g w hich bankers
ca n ’t do. T h ey ca n ’t sin g b e fo r e a “ m ik e.”
The ren d ition o f “ Sw eet A d e lin e ” fr o m
the H e n ry F ie ld station w as terrible. A t
least som e w ho w ere listen in g in said so.
T h ey said it sou n ded as thou gh a w ire had
g o t crossed w ith the m a n ifo ld and short
circu ited the differential.

Five New Banks Join
F iv e n ew ba nks have becom e affiliated
w ith N orth w est B a n co rp o ra tio n , b r in g in g
the total n u m b er o f banks o r tru st c o m ­
p a nies in the g r o u p to 109.
B a n k o f Spearfish, Sou th D a k ota , c a p ­
ital $25,000, su rplu s $75,000 an d d e p o s its
o f $1,500,000, w as orga n ize d in 1882 and
lo n g has been p ro m in e n t as a liv e stock
bank. I t a b sorb ed the A m e rica n N a tion a l
B a n k o f S p earfish in 1927. H . G. W e a re ,
p io n e e r ra n ch er is p resid en t, W . E .
D ick ey , v ice p resid en t and cashier, J. M .
R am sey, assistant cashier. B o a rd o f d i­
rectors com p rises these three, also H . F .
D ick e y an d H . P . Ilsley .
The F irs t N a tion a l B a n k, G ro to n , Sou th
D ak ota , ca p ita l $25,000, su rp lu s $25,000,
dep osits $471,000 and resou rces $548,000
also dates fr o m 1882. O fficers are, W . B.
M iller, p resid en t ; A le x . H ig h la n d , v ice

77
p r e s id e n t; J . W illia m s, c a sh ie r; Y . M .
A ce o la , assistant cashier. M em bers o f the
b o a rd besides M essrs. H ig h la n d , W . B .
M ille r and J . W illia m s are D . E . C a m p ­
bell, w h o is p r e s id in g ju d g e o f th e S u ­
p rem e C ou rt o f Sou th D a k ota and V a n ce
E . M iller.
F irs t N a tion a l B a n k in M o b rid g e , Sou th
D a k ota
has ca p ita l
$50,000, su rplu s
$10,000, d ep osits $230,000 an d resou rces
$290,000.
F . W . S ch irb er is presid en t,
R . A . H . B ra n d t, v ice presid en t. D ir e c ­
tors a r e : R . A . H . B ra n d t, F . H . G annon,
F . W . S ch irb er, J. E . S ch latter and A le x .
H ig h la n d .
M an ha tta n State B a n k , M anhattan,
M on tan a, has ca p ita l $25,000, su rp lu s
$15,000,
d ep osits
$200,000,
resou rces,
$250,000.
O fficers are S. M cK en n a n ,
p r e s id e n t; M a rtin J a co b y and G eorge V e r w o lf, v ice presid en ts, L. D . M oritz, cash ­
ier, and A . D . W in te r , assistant cashier.
B esides M essrs. M cK e n n a n , J a co b y , V e r w o lf and M o ritz, d irectors are W . H .
B u ttelm a n, W . M . C ow an and E . M .
W r ig h t.
F irs t N a tion al B a n k o f H illsb o ro , N orth
D a k ota , w as org a n iz ed as a state bank in
1881 b y E . Y . Sarles, on e tim e g o v e r n o r
o f that state. It becam e a n ation a l hank
in 1893 and in N ovem b er, 1929, ab sorbed
the H ills b o ro N a tion al B ank.
C a p ita l is
$50,000, su rp lu s $12,210, d ep osits, $767,936.
O fficers a r e : F r e d L . G oodm a n ,
ch a irm an o f b o a r d ; E a rle R . Sarles, p r e s ­
id e n t; P . B . P eterson , v ice p r e s id e n t; O.
E . R u d ru d , v ice p r e s id e n t; E . A . Iverson ,
c a sh ie r; P a lm er E . R u d ru d , assistant
cashier. D ire cto rs a r e : A . G. F oog m a n ,
F . L . G ood m a n , O. S. H a n son , R . T. Jahr,
P . S. P eterson , P . B . P eterson and E a rle
R . Sarles.

The Value of Brains
N e v e r b e fo r e in h isto ry has there been
such a m arket f o r in tellect above the c o m ­
m on level a p p lie d to the variou s arts o f
in d u stry. I t is an era o f r e co g n itio n o f
th e va lu e o f b rain s ov er brick s.
“ T o d a y , no business statem ent rests on
p h y s icia l assets o f land, b u ild in g and
eq u ip m en t e x ce p t as to o ls o f ea rn in g
p o w e r u n d e r able m anagem ent.
I n the
analysis o f se cu rity values, ‘ b o o k v a lu e’
has to d a y assum ed lesser sign ifican ce
w here ‘ea rn in g p o w e r ,’ actual o r p o t e n ­
tial, loom s la rg e ly in the fa c t o r o f p r ic e
Avhich the in ve stin g p u b lic w ill p a y f o r
securities. I t alm ost seem s as i f in vestors
w ere g r o p in g , th ro u g h stock ow n ersh ip ,
f o r som e w a y to possess a share o f that
f a c t o r o f grea t v a lu e d en oted as train ed
in te llig e n ce o r in sp ira tio n a l geniu s.
“ Su ch p r o v e n
in d iv id u a l w orth
in
m a na gem ent is to d a y in su red f o r vast
sums, ju s t as b u ild in gs an d eq u ip m en t are
in su red against fire. It is an age o f a p ­
p ra is a l th rou gh the m a rket p la ce o f that
m ost in ta n gib le, and y et m ost real, valu e—
the hum an in te lle ct .” — Julius H . Barnes.


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

Valuable Rights
A t a m eetin g o f the b oa rd o f d irectors
o f T h e N a tion a l B a n k o f the R e p u b lic,
it w as voted to in crease the ca p ita l o f the
in stitu tion fr o m $10,500,000 to $11,000,000, th rou gh the issuance o f “ rig h ts” to
stockh olders.
In stead o f fo llo w in g the p re v io u s sem i­
an n ual p ra ctice o f o ffe rin g $500,000 a d ­
dition al stock in one lot, the cu rren t stock
in crease is p r o p o s e d to he d iv id ed in to tw o
installm ents, one o f $250,000, o r 12,500
shares o f the p a r o f $20 w ill be offered
to stock h old ers o f re co rd Ju n e 20tli at
$40 p e r share, on the basis o f on e new

R

share f o r each 42 shares then held. The
ba la n ce o f $250,000 o r 12,500 shares w ill
be o ffered to stockh olders o f r e co rd S e p ­
tem ber 20th at $40 p e r share, on the basis
o f one n ew share f o r each 43 shares then
held.
O f th e p ro ce e d s receiv ed in p a y ­
m ent o f the stock w hich w ill tota l $1,000,000, $500,000 w ill be cred ited to the c a p ­
ital accou n t o f the hank and the ba la n ce
o f $500,000 w ill be used to au gm en t the
ca p ita l and su rplu s o f the b a n k s’ in vest­
m ent affiliate, T h e N a tio n a l R e p u b lic
C om p a n y.
In ad dition , it w as voted to p a y the
reg u la r 4 p e r cent cash d iv id en d o n Ju n e
30th to stockh olders o f r e co rd Ju n e 20th.

ATED “ EXCELLE N T” as to Man­
agement, Assets,

Reserves and

Mortality, Central Life enjoys the sup­
port and confidence of hundreds of
men in the hanking profession in twen­
ty states in which it operates.
This confidence has been an import­
ant factor in the steady, substantial
growth of the company during the past
34 years.
Assets, More Than $32,000,000
Insurance in Force,
Nearly $200,000,000

Central
Life
Assurance Society
(MUTUAL)
T . C. D E N N Y , President
DES M O IN ES

IO W A

Northwestern Banker

June 1930

78

“ AT H O M E ”
It’s a feeling that we are trying to hold foremost in our contacts
with our agents.

D ID

Y O U

EVER

K N O W

That a Company could be human to the extent o f considering
every agent as a personality, and doing everything possible to make
him feel “ at home.”

T H E S E C U R IT Y F IR E H O L D S
IT T H E I R D U T Y T O K N O W
T H E IR A G E N T S
W e have a field man in your state “ anxious to Know You and
Serve Y O U .”
Small
S tron g
O ld

E
N
O
U
G
H

To Know You
T oP rotectY ou
To Serve You

Surplus to
Policyholders
$300,653.99
350,888.71
412,192.76
493,216.00
518,108.58
601,820.30
640,548.34
701,429.94
1,060,961.97

A SSE T S
................... $1,085,861.85
................... 1,145,225.98
.................... 1,178,100.24
................... 1,274,933.70
................... 1,290,004.85
................... 1,481,724.73
................... 1,509,068.94
................... 1,588,927.26
.................... 2,068,162.51

1920 ........
1 9 2 1 ........
1922 ........
1923 ........
1924 ........
1925 ........
1926 ........
1927 ........
1928 ........

1929

-

-

$2,197,461.36

-

$1,083,103.14

W e will tell you more about this Company— or our field man will
call if you will tell us you want to feel “ at home.”

SECURITY FIRE INSURANCE CO.
OF DAVENPORT, IOWA

Northwestern Banker


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

June 1930

79

Iowa Convention and News Section
Iowa Convention Program
PROGRAM
OF T H E T E N T H A N N U A L
STATE CONFERENCE
o f t h e O ffic e r s o f t h e C o u n t y B a n k e r s A s ­
s o c ia tio n s
on
‘ ‘ S till
M ore
P r o f i t a b le
B a n k A d m in i s t r a t i o n a n d O p e r a tio n . ’ ’
G o l d R o o m , M e z z a n i n e F lo o r , B l a c k H a w k
H o t e l , D a v e n p o r t , 1 2 : 1 5 P . M .'— M o n d a y ,
June 16, 1930.
1 2 :1 5

p.

m .— “ D u t c h

T re a t’ ’

Luncheon.

M u s ic , e n te r ta in m e n t.

1. R e m a r k s , G . W . Y o u n g , J r . P r e s i d e n t ,
‘ ‘ O r g a n i z a t i o n o f O ffic e r s o f C o u n t y B a n k ­
ers A s s o c i a t i o n s .”

2. A W o r d f r o m t h e P r e s i d e n t o f t h e
I . B . A ., W . G . C. B a g le y , M a s o n C ity , p r e s ­
id e n t o f th e I o w a B a n k e r s A s s o c ia t io n .
3. R e p o r t o f S e c r e ta r y , H a r r y W . J e n ­
n i n g s , S e c r e t a r y , ‘ ‘ O r g a n i z a t i o n o f O ffic er s
o f C o u n ty B a n k e rs A s s o c ia tio n s , ’ ’ S e c re ­
ta r y , M a r s h a ll C o u n ty B a n k e r s A s s o c ia tio n ,
C a s h ie r , I o w a S a v i n g s B a n k , M a r s h a l l t o w n .

4. A p p o i n t m e n t o f
C o m m itte e s . —
R e s o lu t io n ,
(b ) N o m in a tin g .

(a )

P rogram
‘ ‘ F arm
M o rtg a g e
E x c h a n g e ’ ’ — Jasp er
co u n ty — R .
C.
M acy,
P re sid e n t,
Jasp er
C o u n t y B a n k e r s A s s o c i a t i o n , C a s h ie r , F i r s t
S ta te B a n k , L in n v ille .
( 3 m i n u t e s .)
G en­
e r a l d is c u s s i o n .
“ C h a in
S to r e
A c c o u n t s ” — P o w e sh ie k
c o u n t y — J . E . B a c h , C a s h ie r , G r i n n e ll S t a t e
B a n k , G r in n e ll.
( 3 m i n u t e s .) G e n e r a l d i s ­
c u s s io n .
cou n ty—

C. S. R y e , P r e s id e n t, W o r th C o u n ty B a n k ­
e r s A s s o c i a t i o n , C a s h ie r , M a n l y S t a t e B a n k ,
M a n ly .
( 3 m i n u t e s .)
G e n e r a l d is c u s s i o n .
“ S e r v ic e
C h a r g e s ’ .’ — T a m a
c o u n ty —
W e s l e y T . H e c k t , C a s h ie r , L i n c o l n S a v i n g s
B a n k , L in c o ln .
( 3 m i n u t e s .)
G en era l d is ­
c u s s io n .
“ C h a rg es fo r D u e N o t ic e s ” — K o ssu th
c o u n ty — F . D . W illia m s , V ic e P re sid e n t,
K o s s u th C o u n ty B a n k e r s A s s o c ia tio n , P r e s ­

L e ft:

F a y e t t e c o u n t y — H o y t R . Y o u n g , C a s h ie r ,
A m e r ic a n N a t io n a l B a n k , A r lin g to n .
(3
m i n u t e s .)
G e n e r a l d is c u s s i o n .
‘ ‘ S a v i n g s D e p a r t m e n t ’ ’ -— P o t t a w a t t a m i e
c o u n ty — R o b e rt W . T u rn er, P re sid e n t, C ity
N a t i o n a l B a n k , C o u n c il B l u f f s .
(3 m in ­
u t e s .)
G e n e r a l d is c u s s i o n .
“

1 : 3 0 p . m .— C o n f e r e n c e c a ll e d t o o r d e r ,
G . W . Y o u n g , J r ., P r e s i d e n t , “ O r g a n i z a ­
t i o n o f O ffic e r s o f C o u n t y B a n k e r s A s ­
s o c i a t i o n s ,”
S e c re ta ry , W r ig h t C o u n ty
B a n k e r s A s s o c i a t i o n , a n d C a s h ie r , B a n k
o f C la r io n , C la r io n .

“ R a ilr o a d P a y R o l l s ” — W o r t h

id e n t, Io w a S t a t e B a n k , A lg o n a .
(3 m in ­
u t e s .)
G e n e r a l d is c u s s i o n .
‘ ‘ S a v in g s
A c c o u n ts
W ith d r a w a ls ” —

‘ F lo a t’

and

‘ Per

Ite m ’

C h arges” —

S io u x c o u n ty — C. A . W a l h o f , V ic e P r e s i­
d e n t, S ta te B a n k o f R o c k V a lle y , R o ck
V a lle y .
( 3 m i n u t e s .)
C erro G o rd o c o u n ty
— H a r o ld V . B u ll, S e c r e ta r y , C erro G ord o
C o u n t y B a n k e r s A s s o c i a t i o n , C a s h ie r , F i r s t
N a tio n a l B a n k , M a so n C ity .
( 3 m i n u t e s .)
G e n e r a l d is c u s s i o n .
“ T r e n d a n d M e t h o d o f C o m p u tin g I n ­
te r e s t ” — P a g e c o u n ty — R . H . S a w y e r, S ec­
r e ta r y , P a g e C o u n ty B a n k e rs A s s o c ia tio n ,
A s s is ta n t
C a s h ie r , S h e n a n d o a h
N a tio n a l
B a n k , Shenandoah.
( 3 m i n u t e s .)
G en eral
d is c u s s i o n .
“ F a r m e r s C r e d it S t a t e m e n t ” — C a r r o ll
c o u n t y — R . M . M o e li n , P r e s i d e n t , C o m m e r ­
c i a l S a v i n g s B a n k , C a r r o ll.
( 3 m i n u t e s .)
G e n e r a l d is c u s s i o n .
“ G u e s t S p e a k e r ” — “ E a r n in g s an d E x ­
pen se C h a rts o f B a n k s ” — H a rris G. P e tt,
M a n a g e r , D iv is io n o f R esearch an d S ta t is ­
t i c s , F e d e r a l R e s e r v e B a n k , C h ic a g o .
(2 0
m i n u t e s .)
G e n e r a l d is c u s s i o n .
“ C h a tte l M o r tg a g e
L o a n s ” — H a rriso n
c o u n t y — H . W . V a n H o r n , C a s h ie r , D u n l a p
S a v in g s B a n k , D u n la p .
( 3 m i n u t e s .)
G en­
e r a l D is c u s s i o n .
“ C h a ra cte r an d P a r tia l B a n k L o a n s ” —
L i n n c o u n t y — M . R . S e ld e n , A s s i s t a n t C a s h ­
ie r , C e d a r R a p i d s N a t i o n a l B a n k , C e d a r
R a p id s.
( 3 m i n u t e s .)
G e n e r a l d is c u s s i o n .
“ Bank
R evenue
S o u r c e s ” — C r a w fo r d
c o u n ty — T h eo . R o h w e r, P re sid e n t, F a rm e rs
S ta t e B a n k , S c h le s w ig .
( 3 m i n u t e s .)
Tam a
c o u n t y — E . R C r o n k , C a s h ie r , F i r s t N a ­
tio n a l B a n k , M o n to u r
( 3 m i n u t e s .)
G en­
e r a l d is c u s s i o n .
“ B a n k E a r n in g s ” — W in n e s h ie k co u n ty
— C . J . W e i s e r , J r ., S e c r e t a r y , W i n n e s h i e k
C o u n ty
B an kers
A s s o c ia tio n ,
A s s is ta n t
C a s h ie r , W i n n e s h i e k C o u n t y S t a t e B a n k ,
D e c o r a l i.
( 3 m i n u t e s .)
G e n e r a l d is c u s s i o n .
“ M o n th ly
R e p o rts
to
D ir e c to r s ” — F r a n k lin
cou n ty— W a lte r
T.
R o b in s o n ,

C a s h ie r , C i t i z e n s N a t i o n a l B a n k , H a m p t o n .
(3

m i n u t e s .)
“ G u est
S p e a k e r ” — “ C o r r e c tin g
Un­
p r o f i t a b le P r a c t i c e s in B a n k i n g ” — C . M .
D o p ie r , M a n a g e r B a n k in g D iv is io n o f th e
E d w ard
R.
B u rt
and
Com pany,
Bank
A n a l y s t s , B a n k A u d i t o r s , C e r t if ie d P u b l i c
A c c o u n t a n t s , C h i c a g o ; C o u n s e llo r o n B a n k
A n a ly s is a n d A c c o u n tin g f o r th e Illin o is
B a n k e r s A s s o c ia tio n a n d th e W is c o n s in
B a n k e r s A s s o c i a t i o n . ( 1 5 m i n u t e s .) G e n e r a l
d is c u s s i o n .
“ In t e r im R e c e ip t s ” — G reen e c o u n ty — I .
0 . H a s b r o u c k , C a s h ie r , I o w a S t a t e B a n k ,
J e ffe r s o n .
( 3 m i n u t e s .) G e n e r a l d is c u s s i o n .
“ B a n k A d v e r tis in g ” — B e n to n co u n ty —
J. F . T ra e r, V ic e P r e sid e n t, F a r m e r s N a ­
tio n a l B a n k , V in to n .
( 3 m i n u t e s .)
G en­
e r a l d is c u s s i o n .
“ B u ild in g
and
Loan
A s s o c ia tio n s ” —
L in n c o u n ty — E . H . F u rro w , V ic e P r e s i­
d e n t,
M e rc h a n ts
N a tio n a l
Bank,
Cedar
R a p id s.
( 3 m i n u t e s .)
G e n e r a l d is c u s s i o n .
“ D e v e lo p in g B a n k P e r s o n n e l” — B la c k
H a w k c o u n t y — H e r m a n W . W e n t e , C a s h ie r ,
C o m m e r c ia l N a t i o n a l B a n k , W a t e r l o o .
(3
m i n u t e s .)
G e n e r a l d is c u s s i o n .
“ B a n k E m p lo y e e s ” — L ee c o u n ty — M . E .
T a t e , V i c e P r e s i d e n t a n d C a s h ie r , S e c u r i t y
S t a t e B a n k , K e o k u k , C h a ir m a n E d u c a t i o n a l
C o m m itte e o f th e I . B . A .
( 3 m i n u t e s .)
G e n e r a l d is c u s s i o n .
“ C h eck K it e r s ” — B la c k H a w k c o u n ty —
F r e d H . W r a y , V i c e P r e s i d e n t a n d C a s h ie r ,
P io n e e r N a t i o n a l B a n k , W a t e r lo o .
(3 m in ­
u t e s .)
G e n e r a l d is c u s s i o n .
“ B a n k in g H o u r s ” — Io w a c o u n ty — R . R .
S eh ro ed er, S e c re ta r y , Io w a C o u n ty B a n k ­
e rs A s s o c i a t i o n , C a s h ie r , I o w a C o u n t y S a v ­
in g s B a n k , M a r e n g o .
( 3 m i n u t e s .)
G en­
e r a l d is c u s s i o n .
“ N ig h t D e p o sito rie s an d E v e n in g B a n k ­
in g H o u r s ” — P o lk c o u n t y — L y n n G . F u lle r ,
V i c e P r e s i d e n t a n d C a s h ie r , C e n t r a l N a ­
tio n a l B a n k an d T ru st C o m p a n y , fo rm e r
B a n k E x a m in e r , D e s M o in e s .
( 3 m i n u t e s .)
G e n e r a l d is c u s s i o n .
“ D i s c o u n t R a t e s ” — B u t l e r c o u n t y — -H .
N . R e in ts , T re a su r e r, B u tle r C o u n ty B a n k ­
e rs
A s s o c ia tio n ,
C a s h ie r ,
K e ls e y
S ta te
B a n k , K e ls e y .
( 3 m i n u t e s .)
G e n e r a l d is ­
c u s s io n .
“ The
B u en a

P resen t D a y
V is ta

T h e D a v e n p o r t C o u n t r y C lu b h o u s e .
C e n ter:
A p u t t i n g g r e e n o n C r e d it I s l a n d g o l f c o u r s e .
M i s s i s s i p p i r i v e r a n d l o c k s f r o m t h e D a v e n p o r t C o u n t r y C lu b h o u s e .


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

C o u n try

co u n ty — E .

R ig h t:

A

M.

B an ker” —
D uroe,

v ie w

Northwestern Banker

of

V ic e

th e

June 1930

80

L e ft:

A v i e w o f t h e M i s s i s s i p p i r i v e r a n d L e C la ir e P a r k f r o m t h e f o o t o f M a i n s t r e e t a t D a v e n p o r t . C e n t e r :
A ir p la n e v ie w
o f D a v e n p o rt.
E ig h t:
T h e su n d ia l a n d th e su n se t g u n a t th e E o e k I s la n d A r s e n a l, w ith D a v e n p o r r in th e d is ta n c e .

P r e s id e n t, F ir s t N a t i o n a l B a n k , S io u x B a p id s .
( 8 m i n u t e s .)
G e n e r a l d is c u s s i o n .
“ Bank
M e r g e r s ” — C r a w fo r d
co u n ty —
H . E . Q u a l h ie m , E x e c u t i v e V i c e P r e s i d e n t ,
C r a w fo r d C o u n ty T r u s t & S a v in g s B a n k ,
D e n is o n .
( 3 m i n u t e s .)
G e n e r a l d is c u s s i o n .
“ P ow er
F a r m i n g ” — C a r r o ll
cou n ty—
H e n r y M o h r , C a s h ie r G li d d e n S a v i n g s B a n k ,
G li d d e n .
( 3 m i n u t e s .)
G e n e r a l d is c u s s i o n .
“ In su re d B o n d s ” — C ass c o u n ty — O . A .
O tto , V ic e P re sid e n t, W h it n e y L o a n an d
T ru st C o m p a n y , A tla n tic .
( 3 m i n u t e s .)
G e n e r a l d is c u s s i o n .
R e p o r t o f C o m m itte e s — ( a ) R e s o lu tio n s
C o m m itte e .
( b ) N o m in a tin g
C o m m itte e .
A n y U n f in i s h e d or N e w B u s in e s s .
“ S e r v ic e C h a r g e ” P a m p h le ts — D is t r ib u ­
tio n o f se ts o f ‘ ‘ S e r v ic e C h a rg e ’ ’ p a m p h ­
le ts o f d iffe r e n t I o w a C o u n ty B a n k e r s A s ­
s o c ia tio n s a n d c it y a n d r u r a l b a n k s , c o l­
le c te d a n d d is t r ib u te d a t th is C o n fe r e n c e
th r o u g h th e
c o u r te s y o f th e
“ B a n k in g
A n a ly s is C o m m itte e ” o f our S ta te A s s o c ia ­
tio n .
A d jo u r n m e n t.
SECOND
T u esd ay,

D AY

J u n e 17, 1 9 3 0 — 9 :0 0
C a p ito l T h e a tr e

A.

The
S eren ad ers
Q u a r te tte — D a v id
C.
N o r d str o m , t e n o r ; R u th B e n k e r t W u n s c h e l,
s o p r a n o ; F a n n ie
S c h n itg e r M a r tin , con ­
tr a lto ; W a lte r K . Y o s s , b ass.
I . W a l t z S o n g ( F a u s t ) ............................G o u n o d
2 . V o l g a B o a t m a n ----------------R u s s i a n F o l k s o n g
3 . L e g e n d o f th e B e lls (C h im e s o f N o r ­
m a n d y ) .........................
P la n q u e tte
4 . M o o n b e a m s ' ( R e d M i l l ) ...................... H e r b e r t
5. O n e M o r n I R e m e m b e r ( R ig o le t t o )
- ...............
V erd i
5. A d d r e s s o f W e lc o m e — (a ) “ O n B e h a lf
o f th e D a v e n p o r t B a n k e r s ” M r . J o s J . B r u s ,
V ic e P r e s id e n t, U n io n S a v in g s B a n k
&
T ru st C om p a n y, D a v en p o rt,
(b ) “ On B e ­
h a lf o f th e C it y
o f D a v e n p o r t ,”
Hon.
G eorg e C. T a n k , M a y o r .
6. R e sp o n se to A d d r e s s o f W e lc o m e —
M r . C. R . W o o d e n , P r e s i d e n t , W o o d e n S a v ­
in g s B a n k , C e n t e r v ille , a n d V ic e P r e s id e n t
o f th e I o w a B a n k e r s A s s o c ia t io n .
(T h e
V i c e P r e s i d e n t a s s u m e s t h e C h a ir a n d p r e ­
s id e s o v e r t h e C o n v e n t i o n u n t i l t h e p r e s e n ­
t a t i o n o f t h e g a v e l t o t h e P r e s i d e n t .)
7. A n n u a l A d d r e s s o f t h e P r e s i d e n t —
M r . W . G . C. B a g le y , P r e s id e n t, F ir s t N a ­
tio n a l B a n k , M a s o n C ity .
8. P r e s e n ta tio n to th e P r e s id e n t o f th e
I v o r y G a v e l— B y W a lt e r T . R o b in s o n , C a s h ­

Northwestern Banker

June 1930

C itiz e n s

N a tio n a l

B a n 1*, H a m p t o n .

9. R e sp o n se — P re sid e n t W . G . C. B a g le y .
( T h e P r e s i d e n t r e s u m e s p r e s i d i n g .)
10. P r e sid e n t A p p o in ts C o n v e n tio n C o m ­
m it t e e s — ( a ) O n R e s o lu tio n s ,
(b ) In M em o r ia m o f M r . A . C. S m ith , fo r m e r , I . B . A .
P r e s id e n t,

d eceased

d u r in g

th is

p ast

year.

11. A d o p tin g A s s o c ia tio n
R e p o rts— (a )
A g r ic u ltu r a l, O tto C. H e r m a n , B o o n e ; ( b )
A m e r ic a n iz a tio n , L . A . A n d r e w , O ttu m w a ;
(c )
A u d itin g , N . P . B la c k , P e r r y ;
(d )
B a n k in g A n a ly s is , R . A . C r a w fo r d , D e s
M o in e s ; (e ) B a n k T a x a tio n , F . B . Y e tte r ,
D a v e n p o r t ; ( f ) E d u c a tio n a l, M . E . T a te ,
K e o k u k ; (g ) F ed eral R eserve, H . L . H o r­
to n , D es
M o in e s ;
(h ) In su ra n c e , R . L .
L e a c h , A d e l; (i) L e g is la tiv e , F re d J . F ig g e ,
O s s ia n ;
(j)
O r g a n iz a tio n
o f O ffic e r s o f
C o u n ty B a n k e r s A s s o c ia tio n s , G . W . Y o u n g ,
J r ., C l a r i o n ; ( k ) R i v e r s D e v e l o p m e n t a n d
W a r e h o u s in g
C o m m itte e , J . K . D e m in g ,
D ubuque:
(1 ) S e c r e t a r y ’ s R e p o r t , F r a n k
W a r n e r . D e s M o in e s ; ( m ) T im e L o c k C o m ­
m i t t e e , J o h n S ie h . S p e n c e r : ( n ) T r e a s u r e r ’ s
R e p o r t , C . T . S im m o n s , B u r l i n g t o n : ( o )
T r u s t P o w e r s a n d T r u s t B u s in e s s , J . M .
H u tc h in s o n , C ed a r R a p id s.

M.

1. S i n g i n g o f “ A m e r i c a ” b y A u d i e n c e .
2. C o n v e n t i o n c a ll e d t o o r d e r b y W . G .
C. B a g le y , M a s o n C it y , P r e s id e n t o f th e
I o w a B a n k e r s A s s o c ia t io n ; P re sid e n t o f
th e F ir s t N a t io n a l B a n k , M a s o n C ity .
3. In v o c a tio n ,
R ev.
F ran k
W .
C o u rt,
P a s to r , S t. J o h n ’ s M . E . C h u rch , D a v e n p o r t.
4. M u s ic a l P r o g ra m (2 0 m in u te s ).


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

ie r ,

F ir s t A n n u a l

“ In v e stm e n t C o n fe r e n c e ”
SFEAKERS

12. “ S u g g e s tio n s fo r a B a n k ’ s B o n d A c ­
c o u n t ” — A l f r e d T . S il lie r . A s s i s t a n t V i c e
P r e s id e n t. F ir s t U n io n T ru st & S a v in g s
B a n k , C h i c a g o , a f f ili a t e d w i t h t h e F i r s t
N a t i o n a l B a n k o f C h ic a g o .
( 2 0 m i n u t e s .)
G e n e r a l d is c u s s i o n .
13. “ Is P re se n t D a y B a n k B u y in v o f
B o n d s S o u n d ? ” — H a r o ld E . W o o d , V ic e
P r e s i d e n t , F o r e m a n S t a t e C o r p o r a t io n , a ffi­
lia te d w ith F o r e m a n -S t a t e N a t i o n a l B a n k ,
C h ic a g o .
( 2 0 m i n u t e s .)
G e n e r a l d is c u s ­
s io n .
14. “ A n a ly z in g In v e s tm e n t A c c o u n ts o f
B a n k s ” — C lift o n II. M e r r y , S a le s M a n a g e r
C o n t i n e n t a l I l l i n o i s C o m p a n y . C h ic a g o , a ffi­
lia t e d w ith th e C o n tin e n ta l I llin o is B a n k &
T r u s t C o m p a n y , C h ic a g o .
( 2 0 m i n u t e s .)
G e n e r a l d is c u s s i o n .
15. “ P u b lic U t i l i t y B o n d s as a n I n v e s t ­
m e n t f o r B a n k s “ — G . I . B e ll, A s s is t a n t
V ic e P r e s id e n t, H a r r is T r u st & S a v in g s
B a n k , C h ic a g o .
( 2 0 m i n u t e s .)
G en eral
d is c u s s i o n .
16. “ L e g a l I n v e s tm e n ts fo r Io w a S ta te
In c o rp o ra te d
B an ks” — L.
A.
A ndrew ,
S ta t e S u p e rin te n d e n t o f B a n k s f o r Io w a .
( 2 0 m i n u t e s .)
G e n e r a l d is c u s s i o n .
M e e tin g

of

th e

Io w a

A.

B.

A.

( N . B . ) — M r . C . T . C o le , J r ., o f D e s
M o in e s , V ic e P r e s id e n t o f th e A . B . A .
f o r I o w a , r e s ig n e d d u r in g th is p a s t y e a r .
P r e s id e n t B a g le y w ill t h e r e fo r e a s k th e
I o w a A . B . A . m e m b e r s t o s e le c t a C h a i r ­
m a n t o p r e s i d e d u r in g t h e i r m e e t i n g .
1 8 . E l e c t i o n o f I o w a A . B . A . O ffic e r s—
( a ) O n e m e m b e r o f th e E x e c u t iv e C o u n ­
c il ( t o s e r v e f o r 3 y e a r s ) t o s u c c e e d M r .
H . L . H o r to n o f D e s M o in e s .
( b ) O ne m e m b e r o f th e E x e c u t iv e C o u n ­
c il (to s e r v e f o r 3 y e a r s ) .
T h is a d d itio n a l
E x e c u t i v e C o u n c ilm a n c a n b e e l e c t e d a n d
w ill b e e lig ib le to s e r v e on th e A . B . A .
E x e c u t i v e C o u n c il p r o v i d e d t h a t 4 7 a d d i ­
tio n a l m e m b e r s to
th e A .
B . A . fro m
Io w a are r e c e iv e d to q u a lif y th is a d d itio n a l
E x e c u tiv e
C o u n c i lm a n s h i p .
T h e se a d d i­
tio n a l m e m b e r s w ill h a v e to b e o b ta in e d b y
n o t la te r th a n A u g u s t 3 1 , 1 9 3 0 , in ord er to
q u a lif y th is a d d it io n a l E x e c u t iv e C o u n c il­
m a n t o a t t e n d t h e C o u n c il M e e t i n g o f t h e
A . B . A . a t th e tim e o f it s n e x t N a t io n a l
C o n v e n t i o n , w h ic h w i l l b e h e ld i n C l e v e ­
la n d , O h io , fr o m S e p te m b e r 2 9 th to O c to b e r
2 n d , 1 9 3 0 , in c lu s iv e .
(c) A
S ta te
V ic e
P re sid e n t
fo r
th e
A . B . A . f o r I o w a t o s u c c e e d M r . C . T . C o le ,
J r ., r e s i g n e d .
( d ) A N o m in a t in g C o m m itte e m a n to su c ­
ceed M r . L . A . A n d r e w , O ttu m w a .
(e ) A n A lt e r n a t e N o m in a t in g C o m m it­
t e e m a n t o s u c c e e d M r . G e o r g e J . S c h a l le r ,
S to r m L a k e .
( f ) O ne V ic e P r e s id e n t fo r I o w a fo r th e
T r u s t C o m p a n y D iv is io n o f th e A . B . A . to
su c c e e d M r . B . F . K a u ffm a n o f D e s M o in e s .
( g ) O n e V ic e P r e s id e n t f o r I o w a f o r th e
S a v in g s B a n k D iv is io n o f th e A . B . A . to
s u c c e e d M r . L e o J . W e g m a n , C a r r o ll.
( h ) O ne V ic e P r e s id e n t fo r Io w a fo r th e
N a t io n a l B a n k D iv is io n o f th e A . B . A . to
su c c e e d M r . C. C. J a c o b s e n , S io u x C ity .
( i ) O n e V ic e P r e s id e n t fo r Io w a f o r th e
S ta t e B a n k D iv is io n o f th e A . B . A . to su c ­
c e e d M r . F r e d J . F i g g e o f O s s ia n .
19. M e e t in g o f th e I o w a M e m b e r s o f th e
A . B . A . A d jo u r n e d .
2 0 . P r e s id e n t W . G . C. B a g le y re su m e s
p r e s id in g .
2 1 . S e s s io n A d j o u r n e d , 1 2 : 3 0 P . M .
SECO N D D A Y
T u e sd a y A fte r n o o n , Ju n e 17, 1930
1 :3 0 P . M .
S e c n d A n n u a l ‘ ‘ C o n fe r e n c e on T r u st
B u s in e s s ’ ’
G o ld R o o m , M e z z a n in e F lo o r ,
B la c k H a w k H o te l

M em bers

T h e I . B . A . C o n v e n tio n w ill a t th is tim e
b e t e m p o r a r i l y s u s p e n d e d a n d r e s o l v e d in t o
a c o n v e n tio n o f th e I o w a m e m b e r s o f th e
A . B. A .
17. M e e t in g c a lle d to o rd e r b y W . G . C.
B a g le y , P r e s id e n t o f th e Io w a B a n k e r s
A s s o c ia tio n .

SPEAKERS
At

C o n fe r e n c e

on T ru st

B u s in e s s

1 2 :3 0
P . M .— “ D u tc h T r e a t ”
L uncheon
(G o ld R o o m , B la c k H a w k H o t e l) . M u s ic ,
E n te r ta in m e n t.
1 : 3 0 P . M . — C o n f e r e n c e c a ll e d t o o r d e r b y

81

J


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

V

A

S T R O N G , pro­

gressive bank whose
interests, like yours,
are centered on Iowa

BANKERS TRUST CO.
BAN K
Cor. 6th and Locust Sts., Des Moines
Capital $1,000,000.00

Surplus $200,000.00

Northwestern Banker

June 1930

82

3. Election of Officers.

W . G . C. B a g le y , P r e sid e n t, Io w a B a n k ­
ers A s s o c ia tio n .
F o llo w in g th e r e m a rk s
o f P r e s i d e n t B a g l e y , h e w ill t u r n t h e
T r u s t C o n fe r e n c e
o v e r to
M r. J. M .
H u t c h i n s o n , T r u s t O ffic e r , C e d a r R a p i d s
S a v in g s B a n k & T ru st C o m p a n y , C ed a r

(N o te :
A r e s o lu tio n w a s a d o p te d a t th e
1 9 1 3 C o n v e n t i o n m a k i n g t h e e le c t i o n o f
o ffic e rs t h e fir s t o r d e r o f b u s in e s s on t h e
l a s t d a y o f th e m e e t i n g .)
T h e o ffic e rs t o
b e e le c t e d a r e a s f o l l o w s :

R a p i d s , C h a ir m a n o f t h e C o m m i t t e e o n
‘ ‘ T r u s t P o w e r s a n d T r u s t B u s in e s s ’ ’ o f
th e I o w a B a n k e r s A s s o c ia tio n , w h o w ill
p re sid e .
R e m a r k s , C h a ir m a n J . M . H u t c h i n s o n .

(a ) Presiden t
(b ) V ice Presiden t

Appointment of any Committees,

The

(c )

C h a ir ­

The

m a n J . M . H u tc h in s o n
(a )

Resolutions Committee—

4.

C o m p a n y , D a v en p o rt.
e r a l d is c u s s i o n .

RAY

NYEM ASTER

V ic e P r e s i d e n t , A m e r ic a n C o m m e r c ia l a n d
S a v in g s B a n k , D a v e n p o r t , I o w a .
G e n e ra l
C h a ir m a n o f C o n v e n tio n A r r a n g e m e n t s

G en­

4. “ A Proper Schedule of Fees Charge­
able by Corporate Fiduciaries’ ’ — J . M .
H u t c h i n s o n , C e d a r R a p i d s , C h a ir m a n o f
C o m m i t t e e on ‘ ‘ T r u s t P o w e r s a n d T r u s t
B u s i n e s s ’ ’ o f t h e I . B . A . a n d T r u s t O ffic er
o f th e C e d a r R a p id s S a v in g s B a n k a n d
T ru st C o m p a n y , C ed a r R a p id s.
(1 0 m in ­
u t e s .)
G e n e r a l d is c u s s i o n .
5. ‘ ‘ How Can Bank Customers in Smaller
Communities Be Induced to Become Inter­
ested in a Trust Department of Their Local
Bank’ ’— C. F . H a r r i s , C a s h ie r , S t a t e B a n k ,
G la d b r o o k a n d m e m b e r o f c o m m i t t e e on
‘ ‘ T r u s t P o w e r s a n d T r u s t B u s in e s s ’ ’ o f
I. B . A .
(1 0 m in u te s )
G e n e r a l d is c u s s i o n .

6. “ A Trustor and Life Insurance Com­
panies ’ ’ — A t r u s t o r , l i v i n g i n a c i t y , w i t h
a la r g e in c o m e , w a n ts to c r e a te a tr u s t, b u t
h e is c o n f r o n t e d w i t h t h e f a c t t h a t h is w i f e
or f a m i l y w i l l n o t b e a b l e t o l i v e in t h e
c i t y u n d e r t h e s a m e c o n d i t i o n s a f t e r h is
e a r n i n g p o w e r i s t a k e n a w a y f r o m th e
e s t a t e , a n d h e n c e , c o n c lu d e s t h a t h e c a n n o t
a p p o i n t t h e c i t y b a n k a s t r u s t e e s o f h is
e s t a t e , a n d c o n c lu d e s h e m a y a s w e l l l e a v e
t h e t r u s t w i t h a g o o d in s u r a n c e c o m p a n y .
W h a t c a n b e d on e to c o m p e te w ith th e i n ­
su ra n c e c o m p a n y in su ch c a s e s ? — C la y W .
S t a f f o r d , C a s h ie r , A m e s N a t i o n a l B a n k ,
A m es.
( 1 0 m i n u t e s .)
G e n e r a l d is c u s s i o n .

7. ‘ ‘ Living Trusts and Are There Trusts
That Banks Should Not Undertake?’ ’—

V i c e P r e s i d e n t a n d T r u s t O ffic e r , U n i o n
S a v in g s B a n k & T ru st C o m p a n y , D a v e n ­
p o rt.
( 1 0 m i n u t e s .)
G e n e r a l d is c u s s i o n .
1 1 . “ How Can the Trust Departments
in Iowa b a n k s c o m p e t e w i t h L i f e I n s u r ­

m i n u t e s .)

G en eral

Northwestern Banker


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

June 1930

M is s is -

‘ S u rrou n d ed
L.

A.

by
W o r t h y
A n d r e w , Io w a , S ta te

6 . Talk-— “ C r i t i c i s m s
and
C ondem na­
tio n s, ” H . W . K o e n e k e , K a n s a s , B a n k C o m ­
m is s io n e r , T o p e k a .
7. Talk— “ F r o m
a
N e ig h b o r
to
th e
S o u th , ” S . L . C a n tle y , M is s o u r i, C o m m is ­
s io n e r o f F i n a n c e , J e ff e r s o n .
8.

Talk—

“ B a n k in g

Id e a s

and

E x p e r i­

m e n t s in N e b r a s k a , ”
G. W . W ood s,
b r a s k a , B a n k C o m m is s i o n e r , L i n c o l n .

N e­

9. Talk— “ T h e U n i t B a n k a n d t h e R e ­
g io n a l C le a r in g H o u s e ,” C. F . S c h w e n k e r ,
W i s c o n s i n , C o m m is s i o n e r o f B a n k i n g , M a d ­
is o n .

J a c k s o n , T r u s t O ffic e r , C o u n c il B l u f f s S a v ­
i n g s B a n k , C o u n c il B l u f f s . ( 1 0 m i n u t e s .)
G e n e r a l d is c u s s i o n .

( a ) R e p o r t o f th e c o m m itte e on “ In
M e m o r ia m o f M r . A . C. S m ith , fo r m e r I .
B . A . P re s id e n t, d e ce a se d th is p a s t y e a r .”

Report of Committee on Resolutions.
14. Unfinished business.
1 5 . Any new business.
16. Meeting adjourned at 4:00 P. M.
13.

1 0 . Address— “ O r g a n i z a t i o n o f t h e N e w
In te r n a tio n a l B a n k ,”
M e lv in A . T r a y lo r ,
P r e s i d e n t , F i r s t N a t i o n a l B a n k , C h ic a g o .

13. Unfinished business or new business.
1 4 . Receiving invitations for the 1931
convention.
15. Adjournment of convention, 12:30
P. M.

Third Day
A

G en eral

and

F in a l

C o n v e n tio n

S e s s io n

C a p ito l T h e a tre

1. Meeting called to order

by

th e P r e s i­

d e n t.
2.

Musical Program

(2 0 m in u te s ).

Program
........................
2. M ig n o n e tte

o f F ig a r o ’ ’

M ozart
........................................................ F r i m l

3. C a n zo n e tto
_____________
F r im l
4 . S t r i n g q u a r t e t , “ O ld B l a c k J o e ” ____
.......... ................................. A r r a n g e d b y P o c h o n
5. W a l t z m e l o d i e s f r o m “ T h e P r i n c e o f
P ils e n ”
........................
L u d ers

6.

“ What Are the Best Methods of Se­
curing Trust Prospects?’ ’ — J o s . J . B r u s ,
10.

th e

1 2 . Report of any other Special Com­
mittees.

1. O v e r t u r e , ‘ ‘ T h e M a r r i a g e

(1 0

of

1 2 . “ The Most Unique and Interesting
Trust That I Have Ever Handled” — E . R .

8. “ What Should Control in Selecting a
Trust Officer and What Are the Obligations
of the Trust Officer?’ ’— G e o r g e M i l l e r ,

B a n k , G r i n n e ll.
d is c u s s i o n .

E ast

have

1 1 . Report of Committee on Resolutions.
V a n V e c h t e n S h a ffe r , V ic e P r e s id e n t, C e d a r
R a p id s
N a tio n a l
Bank,
Cedar
R a p id s,
C h a ir m a n .

The H aw keye
E n s e m b le — H e r b e r t
S il b e r s t e i n , fir s t v i o l i n ; W i l l P a a r m a n n , s e c ­
ond v io lin ; A lb e r t P e te rse n , v io la ; A r th u r
P e t e r s e n , c e l l o ; C e n o P e t e r s e n , p ia n o .

9. “ How Can Local People Be Induced to
Name a Bank as an Executor of Their
Will?’ ’ — J . C . B a c h , C a s h ie r , G r i n n e ll S t a t e

“ Ju st

fo llo w in g

a n c e C o m p a n ie s , w i t h r e f e r e n c e t o L i f e I n ­
su ra n c e T r u s ts w h e re th e s e c o m p a n ie s g u a r ­
a n te e c e r ta in r e tu r n s on th e fu n d s r e ta in e d
in t h e t r u s t a n d a r e n o t s u b j e c t t o a n y
lo c a l i n t a n g i b l e t a x or a n y i n c o m e t a x ,
e it h e r F e d e r a l o r S t a t e o n t h e I n c o m e p a i d
to th e b e n e fic ia r ie s ? ” — E . A . H o ffm a n , V ic e
P r e s id e n t, T o y N a t io n a l B a n k , S io u x C ity .
( 1 0 m i n u t e s .)
G e n e r a l d is c u s s i o n .

L . B . B a r t h o l o m e w , T r u s t O ffic e r a n d V i c e
P re sid e n t, B a n k e rs T ru st C o m p a n y , D e s
M o in e s .
( 1 0 m i n u t e s .)
G e n e r a l d is c u s s i o n .

T r u s t O ffic e r , C e d a r R a p i d s N a t i o n a l B a n k ,
C ed a r R a p id s.
( 1 0 m i n u t e s .)
G e n e ra l d is ­
c u s s io n .

on W e d n e s d a y f o r e ­
O u t o f n in e b a n k in g

S u p e r in te n d e n t o f B a n k in g , D e s M o in e s .

K o ssu th

( 1 0 m i n u t e s .)

( 1 0 m i n u t e s .)

Talk—

5 . Talk— ‘
N e ig h b o r s ,”

2. ‘ ‘ How I Am Going About It to Set Up
a Trust Department in My Bank’ ’ — G le n n

3. “ Life Insurance Trusts and a Bank’s
Relation With Local Insurance Under­
writers’ ’ — R o b e r t L . B l o c k , A m e r i c a n T r u s t

C o n fe r­

s ip p i , ” O s c a r N e l s o n , I l l i n o i s , A u d i t o r o f
P u b lic A c c o u n ts (B a n k in g C o m m is s io n e r ),
S p r in g fie ld .

C a s h ie r , O x f o r d J u n c t i o n S a v i n g s B a n k ,
O x fo r d J u n c tio n .
( 1 0 m i n u t e s .)
G en eral
d is c u s s i o n .

P re sid e n t,

Commissioners.

In te r sta te

b a n k su p e r in te n d e n t, th e
a c c e p te d th e in v it a t io n :

1. ‘ ‘ The Relation of Attorneys and Bank­
ers in Trust Work” — F . H . S h i m a n e k ,

V ic e

Annual

c o m m i s s io n e r s in t h e s t a t e s c o n t i g u o u s or
n e i g h b o r s to I o w a , i n c l u d i n g I o w a ’ s o w n

c o m m itte e w h e n it m a k e s it s re p o rt a t th e
l a s t s e s s io n o f t h i s c o n v e n t i o n , W e d n e s d a y
m o r n i n g .)

B uchanan ,

Second

Speakers
Banking

tio n a t D a v e n p o r t,
noon, June 18, 1930.

S t a t e C o n v e n t i o n so t h a t t h e y m a y b e c o n ­
s id e r e d a n d i n c l u d e d a s d e e m e d b e s t b y t h a t

C o u n ty S ta te B a n k , A lg o n a .
G e n e r a l d is c u s s i o n .

Several

ence
of
S ta te
B a n k in g
C o m m is s i o n e r s
w h ic h c o n f e r e n c e w a s i n i t i a t e d b y y o u r
S t a t e A s s o c i a t i o n a y e a r a g o , w i l l b e h e ld
a g a in a t th e c o m in g Io w a S t a t e C o n v e n ­

( I t is a n t i c i ­

p a te d th a t a n y R e s o lu t io n s a d o p te d b y th is
T r u s t C o n f e r e n c e a r e t o b e r e f e r r e d t o “ th e
G e n e r a l C o m m itte e on R e s o lu t io n s ’ 7 f o r th e

S.

T reasu rer

I n t e r m e z z o ............................................... W o r s i n g
7. S e l e c t i o n s
fro m
th e
Ir is h
o p e retta ,
“ E i l e e n ” .............................. V i c t o r H e r b e r t

Changes in Group Officers
F iv e o f th e eleven g ro u p s o f the Io w a
B a n k ers A s so cia tio n held election o f offi­
cers at th eir g ro u p m eetings in M a y .
C hanges w ere m ade in G ro u p s 2, 4, 6,
8 and 10.
T h e officers as th ey n o w a p p e a r on the
roster o f the B a nkers A s so cia tio n are as
fo llo w s :
G rou p 1 : Chairm an, R . B . D a lton ,
Cashier, F ir s t N a tion al B ank , L e M ars,
I o w a ; S ecreta ry , F . W . Joh an sen, V ice
P residen t, F irst N a tion a l B a n k , C h erokee,
Iow a .
G rou p 2 : C hairm an, F . D . W illia m s,
P residen t, Io w a S tate B a n k , A lg o n a ,
I o w a ; S ecretary, A . E . A n d e rso n , Cashier,
C la y C ou n ty N a tion a l B ank , S p e n ce r,
Iow a .

83

—
IO

V
W

\

Is The
Brightest
Spot On
The Map
O U C H authorities as Babson report Iowa to be in better condition.

It

has been a ""long pull” from being the blackest spot on the map to
that of the brightest and Iowa banks have had an important part in bring­
ing it about.
We have been a material factor in the return to better conditions
through service rendered correspondent banks in every part of the State.
Our 35 years of hanking experience has reacted to the advantage of those
we have served.
W e are working for the continued prosperity of Iowa.

GRANT McPHERRIN
President

LYNN C. FULLER
Vice President and Cashier

LELAND WINDSOR
Vice President

D.
BOYD BRANN
Assistant Vice President

C entral Na t io n a l Ba n k


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

yVN D

T R U S T
o

r

UNDER

D
U.

S.

E S

C O IV I P A N V
M

O

I N

GOVERNM ENT

E

S

S U P E R V IS IO N

FO R M E R LY T H E CEN TR A L STA TE BANK

/

Northwestern Banker

June 1930

84
G ro u p 3 : C hairm an, A . S. L u n d, Cash­
ier, F irst N a tion a l B ank, N orth w ood ,
I p w a ; S ecretary, C. C. P alm eter, Cashier,
C erro G o rd o State B ank, C lear Lake,
Iow a .
G ro u p 4 : C hairm an, H . R . Y o u n g ,
Cashier, A m e rica n N a tion a l B ank, A r lin g ­
ton, I o w a ; S ecretary, G eorge W . F alk,
Cashier, F irs t N a tion al B ank, O elw ein,
Iow a .
G ro u p 5 : Chairm an, Theo. R oh w er,
P residen t, F a rm e rs State B ank, S ch les­
w ig, I o w a ; S ecretary, H . W . V a n H o rn ,
Cashier, D u n la p S a vin g s B ank, D u n la p ,
Iow a.
G ro u p 6 : Chairm an, R . C. M a cy , Cash­
ier, F ir s t S tate B ank, L y n n ville, I o w a ;
S ecretary, N . E . K e lly , Cashier, A lto o n a
S a vin g s B ank , A lto o n a , Iow a.
G ro u p 7 : Chairm an, L. C. M cG ill,
Cashier, C om m ercia l State B ank, In d e ­
pen den ce, I o w a ; S ecretary, G. H . Clark,

Cashier, C om m ercia l S a vin g s B ank, M a r ­
ion , Iow a .
G rou p 8 : Chairm an, M . H . D ake, P re si­
dent, F ir s t N a tion al B ank, L ost N a tion ,
I o w a ; S ecretary, H . Y . B u tt, Cashier,
F ir s t N a tion al B a n k , B ellevu e, Iow a .
G rou p 9 : C h airm an, P . M . Sim m ons,
S im m on s & C o., B a nkers, O sceola, I o w a ;
S ecreta ry, B . J. P arson s, Cashier, C om ­
m ercial State B a n k , A ft o n , Iow a .
G rou p 10 : C hairm an, B . D . H elsch er,
V ice P residen t, K e o k u k C ou n ty State
B ank, S igou rn ey , I o w a ; S ecretary, J. C.
H en am a n,
Cashier,
W ooden
S a vin gs
B a n k, C en terville, Iow a .
G rou p 11 : Chairm an, F . E . Skola, V ic e
P resid en t, F a rm e rs S a vin gs B a n k, K a Jona, I o w a ; S ecreta ry, E a rl C. H u ene,
Cashier, State T rust & S a vin gs B ank, M t.
Pleasant, Iow a .

The Gateway to the W est
The gates to the west swing wide open this month in
friendly greeting to the bankers of Iowa; a greeting as genu­
ine as the hospitality back of it.
May your visit to Davenport be long and filled with
pleasure.
The Home Savings Bank especially welcomes you and
places the entire facilities of a complete organization at your
disposal.
Deposits $1,447,761.00

H O M E

SA V IN G S

B A N K

G eorg e K lin d t, P r e s id e n t
H u g o H . S tah l, V ic e P r e s id e n t
P . F . M c C a r th y , V ic e P r e s id e n t
H . T . H a n se n , C a sh ier
A E . S to lte n b e r g , A s s ’ t C a sh ier

your service

PEOPLES
T RUST &

in Eastern Iowa

S A V IN G S

BANK

and

W estern Illinois

Peoples! -rust&Savings Bank
REM EM BER

IT

T H IS

W A Y — “ PEOPLES

TRUST”

O F F IC E R S
W . W . C O O K , President
J . Q. J E F F E R I E S , Vice Pres.
J. C. L A N G A N , V ice Pres.
W M . M. W I L S O N , V ice Pres.
J. L. B O H N S O N , Cashier
C. S. H A R R I S , Assistant Cashier
F . W . S P A L D I N G , Asst. Cashier
E M I L J O H A N N S E N , Asst. Cashier

Northwestern Banker


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

Jane 1930

Heads County Bankers
C. S. R y e, o f M a n ly, Io w a , w as elected
p resid en t o f the W o r th C o u n ty B a n k ers
A sso cia tio n w hich held its annual m eetin g
at N orth w o o d recen tly. O ther officers to
be elected w ere : T. 0 . G roe, N o rth w o o d ,
vice p r e s id e n t; A . C. P etzn ick , G ra fto n ,
secretary an d J. M . P a u lson , J o ice ,
treasurer.

Sees Low Interest Rates
A s co n tra s te d w ith th e g re a te r p a rt o f
1929, w h en m os t b a n k s o f th e U n ite d
S ta tes sh ow ed h igh g ro s s ea rn in g s b e ­
cau se o f h igh in te re st ra te s , th e re m a in ­
d er o f 1930 p ro m is e s to c o n tin u e to b e a
p e r io d o f lo w in te re st ra te s, a c c o r d in g to
the C u rren t B a n k B r ie f b y D r. P a u l M .
A tk in s , e c o n o m ist o f A m e s, E m e rich &
Co.
I t is e v id e n t th a t c a ll loa n s, b a n k e r s ’
a c c e p ta n c e s an d co m m e r cia l p a p e r are
b e co m in g in cr e a s in g ly u n a ttr a c tiv e to
b a n k s fr o m the s ta n d p o in t o f g ro s s e a rn ­
in gs, sa ys th e re v ie w , b u t p o in ts o u t th a t
th e q u e stio n o f w h e th e r the n et in co m e
p r o d u c e d b y th ese so u rce s is la rg e r th an
co u ld be p r o cu re d f r o m o th e r so u rce s
ca n o n ly be a s ce rta in e d b y fin d in g th e
c o st o f a d m in is te rin g fu n d s in th ese s e v ­
era l fo r m s .
A c c o r d in g ly , sa ys D r. A tk in s , th e
p resen t tim e offe rs an e x ce lle n t o p p o r ­
tu n ity to b u y b on d s. T h e re is a lw a y s a
la g in the r e a c tio n o f b o n d p r ic e s to a
d eclin e in in terest ra tes, an d, w h ile in te r ­
est ra tes w ill p r o b a b ly n ot f a l l o ff g r e a tly
d u rin g th e n e x t fe w m on th s, it seem s
q u ite p r o b a b le th at, b a r r in g a te m p o r a r y
te c h n ic a l re a c tio n , th e p r ic e s o f b o n d s
w ill ten d u p w a rd d u rin g the n e x t f e w
m on th s in re sp o n se to th e d e clin e in in ­
tere st ra te s w h ich has a lre a d y ta k e n
p la ce. B a n k ers h a v e th e re p u ta tio n o f
b u y in g b o n d s w hen p r ic e s are h ig h and
se llin g th em w h en p r ic e s a re lo w .
The
p resen t p e r io d , sa ys D r. A tk in s , o ffe rs
the b a n k ers an o p p o r tu n ity to b u y b o n d s
w h en p r ic e s are s till r e la t iv e ly lo w and
h en ce re v e rse th is old ad age.
H e fu r t h e r e x p res sed the o p in io n th a t
the re ce n t ch a n g e in in te re s t ra te s is
lik e ly to a ffe ct lo n g term b o n d s m o r e
th an sh o rt term o b lig a tio n s .

Fire Causes
A s sh ow n b y the a n n u a l r e p o r t o f
S ta te F ir e M a rsh a l H . L. R e a d e , o f
N o rth D a k o ta , m a tch e s -sm o k in g led in
the cau ses o f fire losses in th e sta te d u r ­
in g the la st fisca l y e a r. N e x t in o r d e r,
as to n u m b er o f fires, w as lig h tn in g in
u n ro d d e d b u ild in g s , f o llo w e d b y stoves,
fu rn a c e s , b o ile rs an d th e ir ch im n e y s,
flues an d p ip es.
“ Y o u are w o rk in g too h a rd ,” said the
d octor.
“ I k n ow it,” sighed the pa tien t, “ bu t
th at’s the o n ly w a y I can k eep u p th e easy
p a y m en ts .” -— Cincinnati Inquirer.

85

Plan Fine Entertainment
N A D D I T I O N to the sp len d id p ro g ra m
w hich w ill g reet delegates to the Io w a
B a n k ers A s so cia tio n C on v en tion in
D a v e n p o rt, Ju n e 16-18, sp len d id en te r­
tain m en t f o r all, y o u n g o r old, is b ein g
p la n n ed b y con g e n ia l P ra n k B . Y etter,
chairm an o f the en tertainm ent com m ittee,
an d liis w illin g coh orts. F ra n k , w ho alw ays
has a h ost o f u n e x p ected and en jo y a b le
events tu cked a w a y f o r last m inute usage,
says th is ab ou t en tertainm ent p la n s :

I

“ M rs. G reen, w ho has ch a rge o f the
la d ie s’ en tertainm ent, has advised me that
there w ill b e a theatre p a r t y f o r the ladies,
at 8 :3 0 M o n d a y e v e n in g ;
“ L u n ch eon and en tertainm ent, T u esday,
a t 1 :00 p . m ., to be held at the D a v e n p o rt
O u tin g C lub and the A rsen a l G o lf C lub,
an d a drive fo llo w in g th is ;
“ G ra n d ba ll in the G old R o o m o f the
B la ck h a w k H o te l, at 9 :00 p . m ., T u esda y
evenin g.
“ T h e la dies have also p la n n ed , som e
tim e d u rin g M o n d a y an d T u esday, to visit
o u r art g a lle ry , ‘ A L ittle B it o f H e a v e n ,’
the D a v e n p o r t P u b lic M useum , and the
M useum at R o c k Is la n d A rsen a l, all o f
w hich are v e ry in te restin g p la ce s .”

For the Men
H E m en ’s en tertainm ent w ill consist
o f:

T

“ G o lf, M o n d a y p. m . ;

“ Sm oker, M o n d a y evenin g, at 8 :30
p . m ., at E a g le s ’ H a ll, at 4th an d S cott
S tre e ts ;
“ B ase ball, T u esda y, at 3 :00 p. m . ;
“ G ra n d ball, T u esd a y even in g, B la ck hawTk G old R oom , 9 :00 p . m.
“ O u r guests are in vited to p la y g o lf at
the D a v e n p o rt C ou n try C lub, R o c k Islan d
A rsen a l G o lf C lub, C red it Isla n d G o lf
C ourse, and D u ck C reek C ourse.
“ C olon el D . M . K in g , com m andan t,
R o c k Isla n d A rsen a l, has allow ed us to
issue a sp ecia l pa ss to R o c k Islan d
A rsen a l, g o o d d u rin g the con v en tion . T h is
w ill be in clu d ed in the b o o k o f tickets, f o r
both ladies and gentlem en.
“ N o t o n ly the D a v e n p o rt bankers, bu t
D a v e n p o rt p e o p le g en era lly are lo o k in g
fo r w a r d to this con ven tion , an d everyone
w ill jo in in a m ost cord ia l w elcom e to the
bankers and la dies.”

T H E

R E G IS T E R

FR A N K B. YETTER
V i c e P r e s i d e n t , A m e r ic a n C o m m e r ­
c ia l a n d

S a v in g s B a n k , C h a ir m a n ,

E n t e r t a in m e n t C o m m it t e e

L IF E

W E L C O M E S
T H E

IO W A

S T A T E

B A N K E R S

A S S O C IA T IO N
T O

D A V E N P O R T

R E G IS T E R

LIFE

Organized 1 8 8 9
Brady Street, Between 6th and 7th Streets
M UTUAL


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

L E G A L RESERVE

Northwestern Banker

June 1930

86

Hoffman Named President
F r a n k H o ffm a n , W e s t Side, Iow a , w as
again elected to h ead the C r a w fo r d C ou n ­
ty B a n k ers A s so cia tio n , at the m eetin g
held in D en ison .
O th er officers serv in g
w ith M r. H o ffm a n n are E . W . Tim m , o f
C h arter O ak, v ice president:, and M . L.
R u n ge, o f D en ison , secreta ry and trea s­
urer.
M em bers o f the a ssocia tion and
their w ives e n jo y e d a ba n q u et at the H o te l
D en ison .
In th e absence o f the sp eaker
o f the evening, w ho w as unable to be
presen t on a cco u n t o f a c a r acciden t w hile
en route fr o m S io u x C ity to D en ison , sev­
eral m em bers o f the associa tion m ade im ­
p r o m p tu talks.

Waterloo Banker Dies
C harles A . M arsh, p resid en t o f the
F ir s t N a tion al B a n k o f W a te rlo o , Iow a ,
d ied recen tly, in a h otel at F r e e p o rt, 111.

H e w as a b roth er o f the late W ilb u r W .
M arsh, fo r m e r n ation a l treasu rer o f the
d em ocra tic p a rty an d w id ely k n ow n Iow a
m a n u fa ctu rer, w h o died su dden ly last D e ­
cem ber.
M arsh w as re tu rn in g to W a te r lo o b y
m o to r a ft e r a tten d in g a sale o f his late
b ro th e r’s fa m ou s G uern sey ca ttle at H in s ­
dale, 111.
H e had sto p p e d o v e rn ig h t a t F r e e p o r t
and w as stricken b y h eart disease, w ith
w hich he lo n g had been su ffering.
H is
ch a u ffeu r w as w ith him.
M arsh, w ho was 70, leaves his w id ow
and th ree daughters.

C ou n cil at O ld P o in t C o m fo rt, V a .,
m onth an d re p o rts a v e ry plea sa n t
p rofita b le m eetin g.
A c c o r d in g to
M cP h errin , th e p r in cip a l discu ssion
tered on the qu estion o f ch a n g in g

last
and
M r.
cen ­
the

Attends Council Meeting
G rant M cP h errin , p resid en t o f the C en ­
tral N a tion a l B a n k and T ru st C om p a n y,
D es M oines, likew ise treasu rer o f the
A m erica n B a n k ers A ssocia tion , attended
the m eetin g o f the A . B . A . E x ecu tive

T N JUNE, all roads lead to
We are ex­
pecting a 100% attendance at
the convention June 16, 17
and 18, and we need YOUR
presence to make it so.
And while here, make it a
point to visit the Northwest
Davenport Savings B a n k .
You will find a modern insti­
tution, equipped to render
the greatest possible service
to the bankers of Iowa.

JLDavenport.

Deposits $2,589,299

GRANT

M e P H E R R IN

A . B . A . headquarters fr o m N ew Y o r k to
W a sh in g ton . A f t e r a heated d iscu ssion in
w hich m a ny p a rticip a te d , a reso lu tio n w as
p r o p o s e d b y J oh n P u elich er, M ilw a u k ee
banker, that the p resid en t a p p o in t a c o m ­
m ittee to in vestig a te the p r o p o s e d ch a n ge
and r e p o rt on it later.

NORTHWEST DAVENPORT SAVINGS BANK
Elect Officers
J . S. W e b e r , P r e s id e n t
P e t e r P e te r s , V ic e P r e s id e n t

A lb e r t Egrgrert, C a sh ier
H e rb e rt J . L a n g fe ld t , A s s is ta n t

C a sh ier

/^ iF F E R IN G to Iowa banks complete and efficient banking
service.
l k ‘
¡if ii i b M l
:
£
11 • : ;
P ......
p i T T 'lf rff If if ?r rjrrf
f p

Your

itiquiries and
solicited

AND

B a n k B u ild in g

Established 1872
Combined Capital and Surplus

$1,100,000.00
Northwestern Banker

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Federal Reserve Bank of St. Louis

Bank Extends Articles

V a lle y N a tio n a l B a n k

V a lle y
V a ll e y

patronage

June 1930

S a v in g s

A t the annual m eetin g o f the officials
o f the W a u k o n Io w a State B a n k , the old
officers w ere all a ccord ed a re -e le ctio n as
fo llo w s : P resid en t, S. W . L u d e k in g ; vice
presid ents, M . W . E a ton , G. W . E a ton ,
F ra n k K le e s ; cashier, C. H . M e g o r d e n ;
assistant cashiers, L. A . F o g t, B en L u d e ­
k in g, M eta Z. F a s s e ; b ook k eep ers, N ellie
B eall, E v ely n L e ik v o ld ; d irectors, M . W .
E a ton , R . J . A lex a n d er, S. W . L u d ek in g,
F . H . K le e s, C. H . M egord en .

B a n k

DES M O IN E S, I O W A
R . A . C R A W F O R D , P r e s id e n t
C. T . C O L E , J R ., V i c e P r e s id e n t
C. O . C R A I G , V i c e P r e s id e n t
D . S. C H A M B E R L A I N , V i c e P r e s id e n t
W . E . B A R R E T T , C a s h ie r
C. M . C O R N W E L L , A s s is t a n t C a s h ie r

A rticle s o f in co r p o r a tio n o f the L u x e m ­
b u rg S a vin g s B a n k, L u xe m b u rg , Io w a ,
are exten ded f o r a p e r io d o f 50 years, a c ­
cording- to am ended articles filed w ith L eo
L. T sch udi, cou n ty record e r.
The ca p ­
ital stock o f the ba n k is $15,000.
D irectors o f the han k a r e : C. J. U n gs,
N ew V ien n a , p r e s id e n t; H e n ry G aul, N ew
V ien n a , v ice p resid en t ; F . X . H ein rich s,
N ew V ien n a , ca sh ie r; H e n ry L ak e, N ew
V ie n n a ; O tto A n d e r e g g and J. N . S p od en ,
T u rk ey R iv e r and E . W . H o g a n , W a te r ­
loo.

87

One of Iowa’s Greatest Industrial
Plants
F e w p e o p le are aw are o f the fa c t that
M ason C ity, Io w a , origin a tes, p e r year,
m ore ca rloa d s o f fr e ig h t than a n y oth er
c ity w est o f the M iss iss ip p i r iv e r and this
im m ense ton n a g e is m ade p ossib le b y
D en ison C la y P ro d u cts , m ade b y on e o f
the state’s old est in du stries, the M ason
C ity B r ic k an d T ile C om p a n y.
The
M a son C ity B r ic k an d T ile C o m p a n y w as
started in 1882, m a k in g a fe w com m on
b rick an d d ra in tile f o r lo ca l sale.
It
rem ained o n ly a sm all lo ca l con cern until
taken o v e r b y the late 0 . T. D en ison .
S in ce then this co m p a n y has g ro w n u n til
it is n o w the la rgest p r o d u c e r o f dra in
tile in the U n ited States and p r o b a b ly
even in the entire w orld .
I t is also the
la rgest p r o d u c e r o f h ollow cla y b u ild ­
in g tile in the entire n orthw est.
W h en
o p e r a tin g at fu ll c a p a city it can p ro d u ce
betw een 1,000 and 1,200 ton s o f cla y p r o d ­
ucts p e r day.
F o r m a n y yea rs its p r in c ip a l p r o d u c t
w as drain tile. E v en to d a y the co m p a n y
w ou ld rath er m ake and sell it than a n y ­
th in g else. D ra in tile m a d e p o s sib le the
presen t a g ricu ltu ra l d ev elop m en t o f n orth ­
ern Io w a , sou th ern M in n esota and m uch
o f W is co n sin .
B ecau se dra in tile in ­
creases the ba sic w ealth p r o d u c e d in a
com m u n ity, and because the loca l ba n k er
is the fin an cial ad viser o f the fa rm e r, th is
en terp risin g1 firm has f o r yea rs h elp ed
edu cate the b a n k er on p ro b le m s o f tile
d rain age.
D u rin g the p a s t th irty yea rs this c o m ­
p a n y has d e v e lo p e d an exten sive business
in silo tile, fire p ro ofin g , h ollow b u ild in g
tile, flo o r tile, fa c e tile and r o o fin g tile
beside com m on and fa c e b rick . The m ore
recen t develop m en ts o f these are m att
fa c e d tile an d r o o fin g tile w hich enable
on e to bu ild a hom e o r oth er b u ild in g
w ith its e x p o se d su rfa ces o f b oth w alls
and r o o f o f im p erish a b le h ard burned,
cla y w hose b ea u ty o f textu re and c o lo r
are u nm arred and undim m ed b y tim e.

^ 7 5

Years

O ld

and before the Civil War

Winneshiek County
State Bank
Decorah, Iowa
Capital, Surplus and Undivided Profits
$ 3 5 8 , 0 0 5 . 0 0

The stockholders of this old and sound
institution own the banks at Ridgeway,
Spillville,

Fort

Atkinson,

Highlandville,

Burr Oak, Frankville, Canton and Spring
Grove, all within twenty-five miles of De­
corah which have:
Capital, Surplus and Undivided Profits

$262,574.25
While the combined deposits of
these nine banks is

Elected Cashier
A t a m eetin g o f th e d irectors o f the
F ir s t N a tion a l B a n k o f W a v e r ly , Io w a ,
H e rb e rt C. N o ltin g w as u n a n im ou sly
chosen to fill the p o s itio n o f cash ier o f
th a t
in stitu tion ,
su cceed in g
W illia m
W e id its ch k a , w h ose death occu rre d r e ­
cen tly.
M r. N o ltin g has been con n ected w ith
th e F ir s t N a tio n a l f o r the p a s t tw elve
years. E v e n b e fo r e he finished his h igh
sch ool cou rse he sp en t p a r t tim e f o r six
m onths w o rk in g in to the p o s itio n o f b o o k ­
k eep er, Avhich he to o k im m ed ia tely a ft e r
he h ad g ra d u a ted fr o m W a v e r ly high
sch ool.
S everal y ea rs ago he w as a d ­
v a n ce d to the p o s itio n o f assistant cashier


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

FIVE MILLION

Weiser-Al^yer Investment Corporation
Incorporated
Auhorizedt Capital, $350,000.
Surplus, $30,000.

Paid in, $175,000.

Undivided Profits, $14,441.60

Owned by the Weiser Family and R. Algyer

Northwestern Banker June 1930

88
and w hen M r. W e id its ch k a ’s health began
to fa il, p r a ctica lly all th e duties o f cashier
fe ll u p o n his shoulders.

W c le o m e !

Goes to Mason City
P a u l E . H o o v e r, sp ecia l exam iner f o r
the N orth w est B a n co rp o ra tio n , has been
elected execu tive v ice p resid en t o f the
F irst N a tion al B a n k o f M ason C ity, Io w a ,
and w ill take u p his n ew duties at once.
The election to o k p la ce at a sp ecia l m eet­
in g o f the boa rd o f th e F ir s t N a tion a l
B ank. M r. H o o v e r was also elected a d i­
re cto r and w ill serve as a m em ber o f the
D iscou n t Com m ittee.
M r. H o o v e r has been con n ected w ith the
N orth w est B a n co rp o ra tio n since J u ly ,

Each officer and member of the personnel of the
Citizens Trust & Savings Bank extends a hearty welcome
to the members of the Iowa Bankers Association when
they meet in convention in Davenport on June 16, 17
and 18.
W e hope your stay here will be most enjoyable and
instructive. Of course you will make the Citizens Trust
and Savings your headquarters, and your slightest wish
voiced to any member of the organization, is the surest
way to its fulfillment.
D eposit $ 1 ,9 0 0 ,0 0 0 .0 0

Citizen’ s Trust & Savings
Bank
E . J. D o u g h e r ty , P r e s id e n t
H . L . H u e b o tte r, V ic e P r e s id e n t

E . H. R u n b e r g , C a sh ier
G. W . T h o m p so n , A s s ’ t C a sh ier

1876

1930

The Consolidated National was established fifty-four
years ago, and during all this time has kept pace with the
demands necessary to render the most modern banking
service.
May we serve you?

C onsolidated N ational B ank
D U B U Q U E , IO W A
J. K . D e m i n g , P r e s id e n t
G e o . W . M y e r s , V i c e P r e s id e n t

J o s . W . M e y e r , C a s h ie r

PAUL

E. H OOVER

1929, and has been in charge o f the e x ­
am in ations o f m a ny o f the la rg e r bank s
w hich have becom e affiliated in this g ro u p
d u rin g the year. P re v io u s to that tim e, he
was N a tion a l B a n k E x a m in e r f o r the
M in n ea p olis district, in clu d in g St. P au l,
M in n ea p olis and D uluth. H e first cam e
to M in n ea p olis in 1923. P re v io u s to that
tim e, f o r a p e rio d o f tw o years, he w as
N a tion a l B a n k E x a m in er in C h icago.
M r. H o o v e r w as b orn in H a rro d sb u rg ,
K e n tu ck y , com in g to the n orth w est w hen
he w as tw elve years o f age.
H is first
b a n k in g exp erien ce w as gain ed in the
F irst N a tion a l B a n k o f K a lis p e ll, M o n ­
tana.
M r. and M rs. H o o v e r w ill take u p th eir
residen ce in M a son C ity at once.

She cam e in to the p o lice station w ith a
p ictu re in h er hand.
“ M y h usband has
d is a p p e a re d ,” she sobbed.
“ H e re is his
p ictu re. I w ant y o u to find h im .”
T h e in s p e c to r lo o k e d at the p h o to g ra p h .
“ W h y ? ” he asked.

Northwestern Banker


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Federal Reserve Bank of St. Louis

June 1930

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

89

bankers
now our agents,
anticipating greater
in
insurance, we extendi
heartiest greetings. May
deliberations

during

th ree-day convention
instructive.

®

®

®

Total Insurance in Force $ 5 4 ,0 0 0 ,0 0 0
®

®

®

Guaranty Life Insurance Co,
L.

J.

DOUGH ERTY,

P R E S ID E N T

AND

D A V E N P O R T ,

GENERAL

M ANAGER

I O W A

Northwestern Banker

June 1930

90

Celebrates Silver Anniversary
The M elb o u rn e S a vin g s B ank, M el­
bou rne, Io w a , re ce n tly celeb ra ted th e 25th
an n iversa ry o f its establishm ent.
M a n y old ba nk record s w ere sh ow n and
co m p a re d w ith the presen t d a y system s,
sh ow in g m a n y changes in m ethods o f se­
cu rin g sp eed and a ccu ra cy in accou n tin g.
B esides flow ers receiv ed fr o m local
p e o p le , h an dsom e p ieces w ere con trib u ted
b y the S to ck Y a r d s N a tion a l B ank,
C h ic a g o ;
M ercha nts
N a tion a l
B ank,
C ed a r B a p id s ; Io w a -D e s M oin es N a tion a l
B ank , D e s M o in e s ; State S a vin gs B ank,
B a x t e r ; I o w a S a vin gs B ank, M arsh all­
to w n ; C en tral S tate B a n k , S tate C en ter;
an d B a n k o f C lem ons, Clem ons.

A six o ’ clo ck din n er w as ten dered the
v isitin g ba nkers a t H o te l M elb ou rn e, and
the oth ers p resen t in clu d ed the loca l
b a n k officials, d irectors and th eir ladies, a
total o f 28 pla tes b ein g served.

To Attend State Meetings

and chairm an o f the F irst N a tion a l B a n k
o f T u lsa and still a d irecto r o f th e P h il­
lip s P etroleu m and In d ep e n d e n t O il and
G as com p a n ies.
M r. H a rd esty, p r io r to h is a p p o in tm e n t
w ith the Chatham P h en ix, w as a m em ber
o f the official staff o f the F irs t N a tion al
B a n k o f C h ica g o, an d b e fo r e that o f the

R o b e rt P . B rew er, V ic e P resid en t and
m em ber o f the M an agem en t Com m ittee o f
Chatham P h en ix N a tion a l B a n k and
T ru st C om p a n y o f N ew Y o r k , and P a u l
L. H a rd es ty , A s sis ta n t V ic e P resid en t o f
the same bank, w ill atten d th e Io w a and
M in n esota State B a n kers m eetings.
M r. B rew er is w ell k n ow n as a fo r m e r
O klah om a banker, h a v in g been p resid en t

PA U L L. H A R D E STY
A s s is t a n t v ic e p re s id e n t, C h a th a m
N a tio n a l B a n k & T ru st Co.

Over 20,000 Steel-Spoke
Wheels a Day
/T VHIS is the age of machines. On all machines where work
A depends on ground motion, wheels are an essential factor.
The more efficient the machine, the more exacting become the
wheel requirements.
French & Hecht have specialized for years in the research and
study of wheel application and engineering and have solved
the wheel problem for over 6,000 different machines.
So extensive has been the experience of this organization in the
development and manufacture of steel wheels for all applica­
tions that French & Hecht .service means a distinct saving to
manufacturers, and always the assurance of a perfect combina­
tion for every requirement.
Special wheel service is available to manufacturers, and users
of wheels. Write.

FRENCH & HECHT
STEEL W H E ELS
D A V E N P O R T , IO W A

W HEEL

Northwestern Banker


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Federal Reserve Bank of St. Louis

S P R IN G F IE L D ,

B U IL D E R S

June 1930

S IN C E

1888

O H IO

P h e n ix

U n ion T ru st C om p a n y, C h icago.
H e is
on e o f the best k n ow n an d con sid ered one
o f the ablest o f the y o u n g e r ge n e ra tio n o f
bankers.
The C hatham P h en ix N a tio n a l B a n k
and T ru st C om p a n y is one o f the oldest
and m ost con serv a tive b a n k s in N ew Y o rk .
F o u n d e d in 1812, it w as the first n ation a l
bank to receiv e perm ission at W a sh in g to n
to in co rp o ra te the w ord s “ T ru st C o m ­
p a n y ” in to its nam e. I t h as lo n g been
k n ow n as on e o f the lea d in g in d ep en d en t
ba nks in N ew Y o r k C ity.
S in ce 1911,
under the ad m in istra tion o f M r. L. F .
K a u fm a n , P resid en t, it has had a rem a rk ­
able g row th . It has 16 bra n ch es in N ew
Y o r k C ity and tota l resou rces o f m ore
than three h u n dred m illion dollars. M r.
K a u fm a n has the u niq u e d istin ctio n o f
bein g th e P resid en t o f the F irs t N a tion al
B a n k o f M arqu ette, M ich ig a n .
S ta ffed b y b a n k in g officers d ra w n fr o m
m a n y states an d sections, the Chatham
P h en ix is tru ly n a tion a l in its con n ection s,
its ou tlo o k and its ex p erien ce Avith p r a c ­
tica lly all lin es o f business. B a n k ers w ho
have visited its m a in office in the h ea rt
o f the W a ll Street district say that it is
like a hom e toAvn b a n k in the frie n d lin e ss
o f its Avelcome an d its close p erson a l
k n ow led ge o f the con d ition s in v a rio u s in ­
dustries and sections.
S om e p e o p le lose an h ou r in the m o rn ­
in g and sp en d the rest o f the d a y lo o k in g
f o r it .— D uke o f Newcastle.

91

This CHART Show s the W onderful

INTERNATIONAL
POPULARITY

G row th of

Black line shows increase in International
-Truck production; broken line, increase in~
lotal truck production of the entire industry.
Chart is based on 1929 E dition "Facts ami
Figures” published by National Automobile
ChamberofCommerce latest figuresavailable.

1919

1920

1921

1922

1923

1924

1925

1926

1921

1928

ACK in 1919 International trucks were already very
popular. On the farms and in the cities, many thou_______ sands of men were saving their time and money by
hauling their loads in trucks made by International Harvester.
In that year Internationals were already in the front rank
of production.
Yet t h a t w a s o n l y a s t a r t . Note what has happened s i n c e 1919.
Although the manufacture of all trucks has only DOUBLED in
the ten-year period, the manufacture of Internationals has mul­
tiplied SEVEN FOR ONE. The lines on the chart above show
clearly how the need for low-cost hauling has increased the de­
mand for this International Harvester product.
<$>

<$>

<$■

In te rn a tio n a l
l '/ 2 - ton S peed T r u c k

#

International truck popularity has kept pace with
the popularity of McCormick-Deering farm-operating
equipment. McCormick-Deering 15-30, 10-20, and
Farmall tractors and the many machines that com­
prise the McCormick-Deering line are rendering a
tremendous service in saving labor charges, lowering
the costs of production, and removing the drudgery
from farm life. On every hand it is demonstrated
that trucks and good equipment make the good
farmer better.

The S ix - S p e e d
S p e c ia l
T h e s c e n e at th e t o p o f th e page s h o w s
th e p o p u la r S ix - S p e e d S p e cia l — th e
o r ig in a l h e a v y -d u ty S p e e d T r u c k w ith
six f o r w a r d sp e e d s. T h r o u g h its 2 -s p e e d
a x le it c o m b in e s h ig h r o a d s p e e d w ith
t r e m e n d o u s p u llin g p o w e r f o r g u m b o ,
steep hills, a n d s o ft field s. It has s tu rd y
m e m b e r s t h r o u g h o u t , g o o d lo o k s , a n d
4 -w h e e l bra k e s. T h e S ix -S p e e d S pecial
is a g reat fa v o r ite f o r ru ral h a u lin g .

INTERNATIONAL HARVESTER COMPANY
6 0 6 So . M ic h ig a n A v e .

o f A m e r ic a
( / ncorpora ted )

C h ic a g o , Illin o is

, _Tm.'ini.iLii.iiya >ì ; :c ,1

.... ....... /

CIöM EH BEH W

INTERNATIONAL TRUCKS

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

Northwestern Banker

June 1930

92
Fisher Company Is Steadily
Expanding
E S P I T E business con d ition s w hich
have n ot been to o fa v o r a b le the
p a st f e w years, the F is h e r C om ­
p a n y , o f C harles C ity, Iow a , Avell k n ow n
bank fixtu re m a n u fa ctu rers, r e p o rt a g o o d
business yea r in p ro s p e ct, w ith a num ber
o f con tra cts f o r re m od elin g several banks.
A m o n g the in stitu tion s w hich th ey have
recen tly e q u ip p e d a r e :

D

W est
T ow n
State
B a n k, C h ic a g o ;
P ra irie State, O ak P a rk , 111.; N a tion al
B a n k & T rust, Ja m estow n, N. D a k .; W e s t­
ern N a tion al, D uluth, M in n .; The C iti­
zens, H u tch in so n , M in n .; F ir s t N ation al,

W ausau, W is .,
P a u llin a , Iow a .

and the

F irs t

N a tion al,

The excellent q u a lity o f w ork an d serv ­
ice fu rn ish ed b y The F ish er C om p a n y, in
e q u ip p in g banks w ith n ew fixtu res an d
fu rn ish in g s has resulted in th eir b ein g
recog n ized as a u th ority on all m atters p e r ­
ta in in g to the p la n n in g an d fittin g u p o f
banks and this has resu lted in a v e ry
m aterial increase in the volu m e o f th eir
business.
M a n y things enter in to the su ccessfu l
com p le tio n o f a bank fixtu re c o n tra ct;
close co o p e ra tio n w ith the architect, a sin ­
cere desire to please even to the exten t o f
fu rn ish in g m ore than the p u rch a ser has
a righ t to ex p ect, a th orou g h kn ow led ge

o f m aterials and design, m od ern m ethods
o f con stru ction , com p lete special e q u ip ­
m ent req u ired f o r this class o f w ork ,
am ple ca p ita l an d c a r e fu lly tra in ed e x ­
p erien ced h elp.
The req u ired k n ow led ge to bu ild w ork
o f this k in d p r o p e r ly can be a cq u ired o n ly
b y years o f ex p erien ce, a clo se person al
a p p lica tio n to business and b y m a k in g a
constan t stud y o f the ev er-ch a n g in g c o n ­
d ition s and m a n y p rob lem s a risin g.
The F ish er C o m p a n y has been in su c­
cessfu l o p e ra tio n f o r a p e r io d o f n early
s ix ty years and u n der the p resen t m a n ­
agem en t f o r about th irty years.
T h ey
ship th eir p ro d u cts in to all p a rts o f the
U n ited States, in to C anada and M e x ico
and h ave a ctu a lly fitted up thousands o f
banks, stores and oth er p la ce s o f business.
T h eir business is m a n a ged b y m en w h o
have devoted th eir entire lives to this line
o f w ork .
T h ey have su rrou n d ed th em ­
selves w ith a c o rp s o f h igh ly tra in ed e x ­
p erts in the d esign in g and sellin g o f b u si­
ness fu rn itu re and eq u ip m e n t; th ey em ­
p lo y o n ly the best o f e x p e rie n ce d m e­
chanics and have ev ery fa c ilit y f o r b u ild ­
in g this class o f w ork in the la rgest and
best e q u ip p e d fixtu re fa c t o r y in the m id ­
dle w est and th ey e n jo y a n ation a l r e p u ­
ta tion f o r b u ild in g h igh class cabin et
w ork.

Fontanelle Banker Dies
W . A . A d d iso n , cash ier o f th e F ir s t
N a tion a l B a n k o f F on ta n elle, Io w a , an d
p resid en t o f the F a rm ers M u tu a l T e le ­
p h on e C om p a n y, o f A d a ir C ou n ty, to o k
his ow n life , recen tly, b y firin g tw o bu llets
in to his b o d y .
T he tra g e d y o ccu rre d in
the offices o f th e b a n k b u ild in g an d w as
discovered w ith in a short tim e a fte rw a rd .
A letter addressed to M rs. A d d is o n
stated that the b a n k w as in excellent c o n ­
d ition and th at the reason f o r his a ction
w as ill health, M r. A d d is o n h a v in g s u f­
fe r e d in ten sely f o r the p a s t several
m onths.
A n exa m in a tion o f th e b a n k ’ s
co n d itio n con firm ed this statem ent, the in ­
vestiga tors r e p o r tin g the in stitu tion to be
one o f the stron gest f o r tow n s o f sim ilar
size in the state.
M r. A d d is o n is su rvived b y his w ife , his
fa th er, C harles E . A d d is o n , o f C ain sville,
M issou ri, tw o sisters an d tw o broth ers.

Deposits Over Million
A c c o r d in g to the last statem ent o f the
D y s a r t N a tion a l B a n k , D y s a rt, Io w a , that
in stitu tion n o w has d ep o s its to ta llin g
$1,027,160.99. T h e ca p ita l stock is $6 5,000 and su rp lu s and u n d iv id e d p r o fits o f
a p p ro x im a te ly $25,000.
The presen t officers are as f o l l o w s :
H . P . Jensen, p resid en t ; F . H . Schm idt,
v ice p resid en t ; E rv in M oeller, v ice p r e s i­
d e n t; D an D aily, v ice p re sid e n t an d J. C.
M arsau , cashier.

Northwestern Banker


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

June 1930

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

93

increasingly satisfactory»
O F F IC E R S
Leonard R. M a n le y .........................President
Delko Bloem
..........................flss’t Cashier
C. C. Jacobsen
Vice President
A lb e rt C. E c k e r t.................... Ass’t Cashier
R. Ea rl B ro w n ...............................C ashier
Daniel B. Severson................ Ass’t Cashier
Elm e r O. Sm eby...................... Ass’t Cashier

C 'EC U R I'm /
N A T ^ ^ B * p B | A E 2 ii

WJ of Sioux

Northwestern Banker

June 1930

94
Has Substantial Growth
H . M . S w a n zey, cash ier o f the F a rm ers
S tate B a n k , o f A c k le y , Io w a , re p o rts a
rem arkab le d ev elop m en t o f that in stitu ­
tion d u rin g the p a s t 18 m onths. D e p o sits
o f $225,000 in S ep tem b er, 1928, have n ow
reached the $300,000 m a rk w ith an in ­
crease in bon d s in th e se co n d a ry reserve
o f fr o m $15,000 to $90,000. M r. Sw a nzey
w as fo r m e r ly a ssocia ted w ith the S tock
Y a r d s N a tion a l B a n k in C h icago.
A y e a r a go, w ith the c o o p e ra tio n o f the
Io w a S tate C ollege, at A m es, M r. S w a n zey

Ml MIE

increasing

volume

of

Mason City industrial activi­
ties demands a progressive bank
as your correspondent in this ter­
ritory.
Our

steady

growth

has

been

parallel with the growth of our
industries, and we can offer you a
service complete to the last detail.

HARRY

M. SW AN ZEY

O F F IC E R S

Hanford MacNider
Chairman of the Board
W. G. C. Bagley
President
C. A. Parker
Vice, President
F. È. Keeler
Vice President
R. P. Smith
Vice President
H. V. Bull
Casin' er
W. W. Boyd
Assistant Cashier
H. C. Fisher
Assistant Cashier
R. B. Johnson
Assistant Cashier
R. E. Wiley
Assistant Cashier

First National Bank
gMason

City, Iowa

Resources $ 1 1 ,0 0 0 ,0 0 0 .0 0
Affiliated With Northwest Bancorporation

□
Northwestern Banker

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

June 1930

orga n ized a fa r m a ccou n tin g associa tion .
T h e p u rp o s e o f the associa tion is to g iv e
the fa r m e r an accurate r e co rd o f his a n ­
nual business and a su m m ary o f his p ro fits
and to p o in t ou t w here he has m ade o r
los t m on ey. The o rg a n iz a tio n n o w n u m ­
bers ab ou t 107 m em bers.

In Triple Merger
One o f the m ost im p o rta n t business
tra n sa ction s in the h isto ry o f M o n ro e
C ou n ty w as com p leted w hen the A lb ia
S tate B ank, th e Io w a T ru st & S a vings
B a n k and the F ir s t N a tion al Bank o f
A lb ia w ere con solid a ted in to on e in stitu ­
tion to be k n ow n as the F irs t I o w a State
B ank. The new b a n k in g in stitu tion , w ith
an au th orized ca p ita l and su rplu s o f
$75,000 and w ith tota l resou rces w ell in
excess o f on e m illion d ollars, has taken
over th e entire assets and lia b ilities o f the
three banks and w ill o c c u p y the Io w a
T rust & S a vin g s B a n k b u ild in g o n the
n orth side o f the square.
R . T. M ason w as nam ed as p resid en t o f
the n ew in stitu tion , w ith A . J . R o b e rts as
v ice p resid en t, O. U. C on w ell cash ier and
R o y T. A lfo r d , J oh n W . H . G riffin and
A lle n M ason assistant cashiers. The b o a rd
o f d irectors o f w hich D . W . B ates, o f D es
M oin es, is chairm an, consists o f n ine m em -

95
bers. In a d d itio n to M r. B ates, the m em ­
bers o f the b o a rd are R . T. M ason , J . C.
M a b ry , A . J. R ob erts, M . C. F a lv e y , D .
M . A n d e rso n , P . H . H y n es, H . J. M oore
an d W . A . F ly n n .
E a ch o f th e three b a n k s jo in in g in the
m e rg e r have been a m on g the stron gest
and sa fest fin an cial in stitu tion s in south­
ern Io w a , an d th e con s olid a tion w as
effected, officers o f th e n ew b a n k state,
“ f o r the sole p u rp o s e o f g iv in g the p e o p le
o f M o n ro e co u n ty a b ig g e r and s tron g er
in stitu tio n than the cou n ty has h e re to fo re
e n jo y e d .”
C on tin u in g, the officers o f the
ba n k state in th eir an n oun cem en t o f the
co n s o lid a tio n , “ T h e p o lic y o f co n s o lid a ­
tion is a lo n g th e lin es a p p r o v e d b y both,
n a tion a l an d state b a n k in g dep a rtm en ts
and is in a cco rd w ith th e tren d o f the
tim es.
C h a n gin g
business
co n d itio n s
necessitate changes in m ethod s o f b a n k in g
an d secu rity o f d ep osits is best ob ta in ed
th rou g h la rg e r and th e re fo re stron g er
con ce n tra tio n s o f ca p ita l.”
A ll o f the m en con n ected w ith the
“ F irs t Io w a State B a n k ” are bankers o f
h igh sta n d in g in fin an cial c ircle s o f the
state. P re sid e n t R . T. M a son w as fo r m ­
e r ly v ice p re sid e n t o f the Io w a T ru st &
S a vin g s B a n k , v ice p re sid e n t A . J .
R o b e rts w as v ice p resid en t o f th e A lb ia
State B a n k and cash ier 0 . U . C on w ell
held the p o s itio n o f cash ier o f th e Iow a
T ru s t & S a vin g s B a n k.
O f the three
assistant cashiers, R o y T. A l f o r d w as
cash ier o f the F ir s t N a tion a l B a n k, J oh n
W . H . G riffin w as cash ier o f the A lb ia
S tate B a n k and A lle n M a son w as assistant
cash ier o f the I o w a T ru st & S a vin gs B ank.
On the b o a rd o f d irectors, too, are ba nk
execu tives o f h igh ch a ra cter and lo n g e x ­
p erien ce.
T he chairm an, D . W . B ates,
w as fo r m e r ly p re sid en t o f the A lb ia S tate
B a n k , an d is n o w vice p resid en t o f H om e
S a vin g s B a n k at D es M oin es, J. C. M a b ry
w as p resid en t o f th e F ir s t N a tion a l B a n k ,
M . C. F a lv e y w as p resid en t o f the Iow a.
T ru st & S a vin g s B ank, w hile D . M . A n d e r ­
son w as chairm an o f the b o a rd o f d ir e c ­
tors o f the la tter in stitu tion and each o f
the re m a in in g d ire ctors w ere m em bers o f
the execu tive b o a rd o f the m erg ed banks.

Stockholders Meet
T he annual m eetin g o f the stockh olders
o f the C itizen s S a vin g s B a n k o f Avoca,,
Io w a , w as held in d ire cto rs’ ro o m o f the
bank, M a y 12. O f the 300 shares o f stock
o u tsta n d in g 280 shares w ere rep resen ted
in p erson .
The o ld b o a rd o f d irectors
co n s istin g o f L. J . B in g e, E . W . D avis,
J o h n T. H a zen , S arah E . D a v is, R . F r o s t,
R . G. P e te rs and J. W . D a v is w as r e ­
elected f o r the en su in g year.
A t th e b o a rd o f d irectors m eetin g im ­
m ed ia tely fo llo w in g the official p erson n el
o f the b a n k f o r the com in g y e a r a s elected
b y the b o a rd w a s : p resid en t, J. W . D a v is ;
vice p resid en t, S. E . D a v is ; v ice presid en t,
E . W . D a v is ; cash ier, R . G. P e te r s ; as­
sista n t cash ier, G enevieve J a cob son .


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

-'¡S í52

Æ

2

FIRST
N A T IO N A L

BANK
fifi

IN THE UNIT ED STATES

F A C T S
About This Bank
That Will Be of
Interest to You

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The complete and efficient corre­
spondent service of The First Na­
tional Bank of Davenport; its safe
deposit vault facilities; its highly
experienced bond department;
its knowledge of existing terri­
torial conditions; because it
is the only National Bank in
Scott and Rock Island
Counties— all urge your
consideration of t h i s
Bank as your corre­
spondent in this ter­
ritory.

mm
ititi
jjll
lift

mm

May we suggest that you
write us today?

F irst NationalB an k
JLt Second street and M ain
Davenport,

Iowa

B u ilt b y S e r v ic e

Northwestern Banker

Jane 1930

96

Consolidation at Laurens

Satisfaction
C jp H E

m ech a n ics

F o r ty -tw o years a go, w hen C harles B .
M ills was associated with F a rm er, T h o m p ­
son & H elsell, o f S io u x R a p id s , Iow a ,
there w as org a n iz ed as a p a rt o f th eir
chain o f banks, the F ir s t N a tio n a l B a n k ,
o f L au rens. T h is ba nk had been in co n ­
tin u ou s business until last m onth, w hen
it w as con solid a ted w ith the State B a n k
o f L aurens.
T he con solid a ted b a n k w ill
be k n ow n as th e State B a n k o f L au rens
and M r. M ills is the p resid ent.

of

modern banking can

COMMERCIAL

be handled w ith clock'
like precision by a w ell'
established routine.
But

if

th e

p erson a l

element is lacking there

NATIONAL BANK

is much to be desired in
the matter o f satisfaction.
C H A R L E S B. M IL L S

Our
vice
th in g

correspondent
is

made
by

a

th e

E. W . M I L L E R
P resid en t

sen

J A M E S M. G R A H A M
V ic e P resid en t

living

H.

hum an

W. W ENTE
C ashier

S. C. K I M M
A ssista n t C ashier

element it contains,— thus

R. L. P E N N E
A ssista n t C ashier

bringing to our customers

C H A S S. M c K I N S T R Y
A ssista n t Cashier

c o m p le te
And

sa tis fa c tio n .

satisfaction

P r e s id e n t, M id la n d N a t io n a l B a n k an d
T r u s t C o ., M i n n e a p o l i s

T h e ca p ita l o f the new ba nk is $50,000
and deposits, $650,000. The State B a n k
o f L aurens, w as established som etim e b e ­
fo r e the F ir s t N a tion al B a n k , b y the A l ­
lens, a w ell-k n ow n b a n k in g fa m ily .
In a d d ition to b ein g p re sid e n t o f the
con solid a ted bank, M r. M ills is p re sid e n t
o f the F irs t N a tion a l B ank , S io u x R a p id s ,
Iow a , v ice p resid en t o f the F irs t N a tio n a l
B a n k , R em b ra n d t, Io w a and p resid en t o f
the M id la n d N a tion al B a n k & T ru st C o m ­
p a n y , o f M in n ea p olis.

is
Holds Annual Meeting

essential

to

permanent

banking relationship.

The Commercial National Bank

Northwestern Banker

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

W

a t i

June 1930

^k

l o o

.I

o a v a

T h e C alhoun C o u n ty B a n k ers A s s o c ia ­
tion m et f o r its an n ual m eetin g an d b a n ­
qu et in the G uild hall a t M an son , Io w a ,
recen tly. T h ere w ere 130 presen t.
W . W . T ow n sen d , o f L ak e C ity, p r e s i­
den t o f the C alh oun co u n ty associa tion ,
acted as toastm aster.
The R e v . R o y H .
C ox, o f the M eth od ist C hu rch, g a v e the
in voca tion .
G rou p sin g in g w as led b y
E . J . Sebern , o f th e F a rm e rs’ S a vin g s
B a n k , o f M an son .
M . W . F itz , o f th e F a rm e rs’ S a vings
B a n k, o f M an son , gave the address o f
w elcom e to the m em bers o f the a ssocia ­
tion.
T h is w as resp on d e d to b y G. W .

97
Evans, o f Lohrville. Mrs. Walter Jacobs,
o f Lake City, gave the response fo r the
Avomen guests.
A vocal selection was
given by Mrs. Roy Cox, and several musi­
cal numbers were given by the Egli broth­
ers quartette. Donald Holdoegel, attor­
ney o f Des Moines, gave the address o f
the meeting.
Officers fo r next year elected w ere:
president, Charles E. Bale, Calhoun Coun­
ty State Bank of Manson; vice president,
Charles Beacham, First National Bank o f
Farnhamville; secretary-treasurer, Cecil
Dean, Union State Bank o f Rockwell
City.

O FFICERS

Sixty Years of
Successful
Conservative Banking

A n n u a l M e e tin g

The annual meeting o f the stockholders
o f the Monona State Bank was held in the
directors’ room o f the bank, practically
all the stock being represented by the
stockholder in person by proxy.
An election of directors was had, result­
ing in the unanimous election o f H. H.
Smith, P. H. Humphrey, H. A. Hupfer,
P. H. Howard, H. C. Pox, W . C. Kruse,
William Leui and P. M. Orr.
A fter
serving the bank faithfully and efficiently
as director, vice president and a member
of the examining committee for 30 years
and owing to his physical condition, J. W .
Kregel requested that he be relieved from
further services and W . C. Kruse was
elected to succeed him.
A meeting o f the new board o f directors
followed the meeting o f the stockholders,
at which time F. M. Orr was elected presi­
dent, H. H. Smith, vice president and
H. T. Orr, cashier. A substantial divi­
dend was declared and ordered paid to
the stockholders out o f the earnings in
semi-annual payments on June 30tli and
December 31, 1930, and in addition to the
dividend, 10 per cent o f the net earnings
fo r the year were ordered placed in the
surplus fund at the close o f business De­
cember 31, 1930.
N e w B a n k at D e lta

Arrangements are under way to estab­
lish a new banking institution in Delta
to replace the Delta Savings Bank. At a
meeting o f the stockholders in Delta,
Iowa, it was decided that the name o f the
new financial establishment should be the
“ Farmers Merchants State Bank.”
It is not a reorganization o f the old
bank, but a new one. Only those assets o f
the old bank which the new organization
desires will be purchased.
It is capitalized for $25,000 with a
$5,000 surplus. Joe Utterback, the presi­
dent o f the Delta Savings Bank, will be
the head o f The Farmers Merchants State
Bank. The vice president is Dr. D. L.
Grothaus, while F. X. Kendall assumes
the position o f cashier and Ralph Eastburn assistant cashier.
With the exception o f Dr. Grothaus, the
officers o f the new bank are the same as

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

THE
CITY NATIONAL BANK
C L IN T O N ,

IO W A

W i t h a stro n g B o a r d o f D ir e c to r s
c o m p o s e d o f le a d e r s fo r m a n y y ears
in v a r io u s lin e s o f Iow a b u sin e ss an d
an e x p e r ie n c e d a c tiv e m a n a g e m e n t,
th is

hank

fu r n is h e s

c o n se r v a tiv e ,

sa fe a n d efficien t se rv ice to its b a n k ­
in g c o r r e sp o n d e n ts.

G. L. CURTIS,
President
MILO J. GABRIEL,
Vice President
O. P. PETTY,
Vice President and Cashier
J. H. NISSEN,
Assistant Cashier
H. G. KRAMER,
Assistant Cashier
H. M. OLNEY,
Assistant Cashier
DIRECTO RS

C. A. ARMSTRONG,
President C. F. Curtis
Company, Inc.
A. P. BRYANT,
Manager of Operations
Clinton Corn Syrup
Refining Co.
E. J. CURTIS,
Vice President Curtis Bros.
& Co.
G. L. CURTIS,
President
President Curtis Companies,
Inc.
G. W. DULANY. JR.,
President Eclipse Lumber
Co.
Chairman Climax Engineer­
ing Co.
MILO J. GABRIEL,
Vice President
President Gabriel Lumber
& Fuel Co.
B. M. JACOBSEN,
President Clinton Thrift Co.
J. PETERSON
O. P. PETTY,
Vice President and Cashier
H. W. SEAMAN
J. O. SHAFF,
Farmer and Live Stock
Dealer
W. R. SMITH,
General Manager
Clinton Com Syrup
Refining Co.
F. H. VAN ALLEN,
President J. D. Van Allen
& Son, Inc.

Clinton
County's
Largest
Bank

C ity National Bank
C L IN T O N IO W A
Northwestern Banker

June 1930

98
the old bank. The new vice president re­
places C. A. Burt and Mrs. Luella
Brainard.

D e s M o in e s B a n k M e r g e r N e a r s
C o m p le t io n

The physical consolidation o f the Iowa
National Bank and the Des Moines Na­
tional Bank, which were merged several
months ago into* the Iowa-Des Moines Na­
tional Bank and Trust Company was e f­
fected recently. A ll banking transactions
formerly carried on at the two banks are
now centered in the Iowa National Bank
building.

¿Zoux
C ap ital

-

-

O n e M illio n D o lla rs

R e so u rc e s - T e n M illio n D o lla rs
W e w e lc o m e th e m o s t c a r e fu l in v e s tig a tio n
o f o u r c o r r e s p o n d e n t se r v ic e , k n o w in g th a t th e
e v id e n c e th u s r e v e a le d w ill c o n v in c e y o u f u ll y
o f the a d v is a b ility o f m a k in g th is in s titu tio n
y o u r r e p r e se n ta tiv e in S io u x C ity .

J. L. M ITC H E LL
President
H. A . GOOCH. V ice President
JOH N P . H A IN E R , Cashier
F R A N K R. K IR K , A ss’ t Cashier
L. M. A S H L E Y , A ss’t Cashier
GEO. J. N. SM ITH , A ss’t Cashier

Speed—Accuracy—Satistaction
T ?T T >

r

C

P

I J lV O

1

IO W A S T A T E
T> A
T R U S T & S A V IN G S D l V

\ T | 7

IM

Capital $600,000.00

BU R LIN G TO N , IO W A
_

Northwestern Banker

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

June 1930

IV

This arrangement will be continued until
the completion o f the new home o f the
Iowa-Des Moines National Bank and
Trust Company, which will be erected on
the quarter block now occupied by the
Des Moines National building and arcade,
southeast corner o f Sixth Avenue and
Walnut Street,
Officers o f the bank emphasized that
although the centralization o f the busi­
ness in the Iowa National Bank building
is only temporary, they have gone to con­
siderable pains to insure that the thou­
sands o f customers will be given complete
service in all departments. They pointed
out that with the consolidation, patrons
will find the transaction o f bank business
even more convenient than heretofore.
Extensive alterations and improve­
ments have been made in the building in
preparation fo r the expeditious handling
o f additional business. All private offices
o f bank executives have been moved from
the first floor and the number o f cages has
been increased to twenty-six. All routine
business o f deposits and withdrawals will
be transacted on the first floor as usual. It
will be the location o f the savings depart­
ment, paying and receiving tellers and
collection and exchange tellers.
On the third floor a large banking room
has been created by throwing several
rooms into one. This provides space for
the desks o f a number o f officers having
contact with the public, in addition to giv­
ing room fo r six note and collateral cages.
Executive and loan offices will be on this
floor, also a spacious directors’ room and
a. group o f private conference rooms.
A t the south end o f the floor will be
private offices fo r Louis C. Kurtz, chair­
man o f the board; Clyde E. Brenton, pres­
ident and W . H. Brenton, executive vice
president,
On the fourth floor will be the offices o f
the Iowa-Des Moines Company, the in­
vestment and the mortgage loan depart­
ment.
The safety deposit department will con­
tinue to occupy the basement o f the build­
ing, where the vaults have been enlarged
to accommodate the 3,000 safety deposit
boxes already moved from the Des Moines

99
National Building. Six additional coupon
rooms also have been installed.
To afford easy access to departments on
the third and fourth floors, a large lobby
entrance has been cut in the rear o f the
main banking room on the first floor, open­
ing directly upon the elevators.
Elevator lobbies on the two upper floors
give the patron a full view o f each floor,
while a directory o f all bank officials on
the floor will be displayed prominently in
the lobby.
Officers o f the bank, beginning Monday,
will be located as follow s:
Third floor— Louis C. Kurtz, chairman
o f the board; Clyde E. Brenton, presi­
dent; W . H. Brenton, executive vice
president.
Department o f commercial banking:
Andrew J. Huglin, vice president; George
E. Pearsall, vice president; Albert J.
Warlike, assistant vice president.
Department o f banks and banking:
Herbert L. Horton, vice president; J. R.
Capps, vice president; Clarence Diehl,
vice president; E. W . Jones, assistant
vice president; Orville M. Garrett, assist­
ant cashier.
W . W . Scott, assistant vice president
and manager, business development de­
partment; Edwin F. Buckley, assistant
vice president and manager, credit depart­
ment.
Fourth floor— Albert J. Robertson, vice
president and head o f trust company divison; Clyde H. Doolittle, general counsel;
James J. Hart, trust officer; Victor J.
Pulis, assistant trust officer; William F.
Howell, assistant trust officer; A. L.
Ivreidler, manager, mortgage loan depart­
ment.
Second floor— Harry G. Wilson, cashier.
First floor— Sherman W . Fowler, as­
sistant vice president and secretary o f the
Iowa-Des Moines Company; Richard H.
Collins, assistant vice president; R. L.
Chase, assistant vice president, business
development department; J. Burson, as­
sistant cashier and manager o f savings
department; Thomas J. Hynes, assistant
cashier; F. C. Davis, auditor and Arthur
H. Keyes, assistant secretary, Iowa-Des
Moines Company.

R e m ie n

vigilantes to the joint shoot to be held by
ten counties, at Council Bluffs, some time
in the near future.
Various matters o f interest were dis­
cussed at the business meeting. Ed. Jackson, head o f the trust department o f the
Council Bluffs Savings Bank, was the fea­
ture speaker.

ident o f the City National Bank. George
0 . Free, o f Macedonia, was re-elected vice
president.
Edwin Hubbard, assistant
cashier o f the State Saving Bank, was
named secretary, succeeding Mr. Stender.
J. W . Davis, o f Avoca, was renamed
treasurer.
P ropagan da

E le c t O fficers

Rudolph Stender, o f Avoca, Iowa, was
elected president o f the Pottawattamie
County Bankers Association, at the an­
nual meeting held in the Hotel Chieftain.
Stender succeeds Robert W . Turner, pres­

“ Did yez hear ’bout the trick someone
put over on old Hank ?”
“ No.”
“ Someone left one of dem birth control
pamphlets in the henhouse, and he ain’t
had no eggs fo r a month.” — Columbia
J ester.

SEASONED
The seasoned directorate and the experienced man­
agement of the Pioneer National Bank are directly
responsible for the remarkable growth it has enjoyed
during the seventy-four years of its existence.
It means a great deal to transact business with bank
officials who have spent from eighteen to thirty-seven
years in the service of an institution established in
1856, whose directors average twenty-five years on
the same board.
We offer to you this seasoned banking experience.

Assets over $5,000,000

C o u n t y P r e s id e n t

W . R. Remien, o f the Atlantic National
Bank, Atlantic, Iowa, was elected presi­
dent o f the Cass County Bankers Associa­
tion, at the annual banquet and meeting
o f the organization. Mr. Remien succeeds
O. A. Otto, o f the Whitney Loan & Trust
Company Bank, o f this city, as head o f
the association.
Other officers elected w ere: W ray W il­
son, o f Massena, vice president; J. Stahl,
o f Cumberland, secretary; and H. R.
Gunderman, o f Atlantic, treasurer. Thir­
ty were in attendance at the gathering.
The association voted to defray all ex­
penses o f members o f the Cass County

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

National Ba n k
Established by John H. L eavitt in 16 56
W aterloo. Io w a
IR A

R 0D A M A R

President
C. E . P I C K E T T , Vice President

J . 0 . T R U M B A U E R , Vice President

F R E D H . W R A Y , Vice President and Cashier

Northwestern Banker

June 1930

100

Reviews History of Stockyards
National Bank
N interesting glimpse into the his­
torical background o f the Stockyards National Bank and the Stockyards Trust and Savings Bank of Chi­
cago, is afforded in a story that appeared
recently in the Chicago Evening Ameri­
can, under the signature o f C. E. Enyart,
vice president o f Otte and Company. Mr.
Enyart, in part, said :
“ Beside the gateway o f the stockyards
in Chicago, where hurrying thousands
pass each day to and from their Avork,
stands the unique home o f the Stockyards
National Bank and the Stockyards Na­
tional Bank and the Stockyards Trust and
Savings Bank, a beautiful and stately
structure which follows closely in archi­
tectural design the old state house in
Philadelphia, better known as Independ­
ence Hall.
“ This institution, with total resources
o f about $32,000,000, is the oldest and the
largest outlying banks in Chicago.
“ The village o f Chicago Avas surveyed
and platted in 1830 and incorporated in
1833.
“ Thirty-five years later, in 1868, the
Union Stockyards National Bank Avas or­
ganized. Its first president was Samuel
Nickerson, in later years the president o f
the First National Bank o f Chicago.

A

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Federal Reserve Bank of St. Louis

$5

“ It had an original

capital

stock o f

$ 100, 000.

“ Andrew Johnson had become Presi­
dent o f the United States folloAving the
assassination o f Abraham Lincoln in
1868, sixty-tAvo years ago. The country
was just beginning to recover from the
effects o f the civil war.
“ Chicago Avas a rapidly growing town,
hardly a city, and Avhat is iioav Chicago’s
great South Side largely was composed o f
vacant prairies, swamps and the stockyards.
Weathered Storms
UST three weeks after this bank Avas
started, Chicago was practically Aviped
out by one o f the most disastrous fires the
world lias ever knoAvn. They say that
Mrs. O’Leary’s coav started the conflagra­
tion and if she did she Avas directly re­
sponsible fo r a property loss in excess o f

J

$ 200,000,000.

“ The Stockyards National Bank played
an important part in the magic recon­
struction period o f Chicago.
“ In 1873 the city was hit by a great
financial panic but emerged under the
leadership o f Lyman J. Gage, then a di­
rector o f the bank.
“ There followed in 1893 the world’s
fair, which it is said only Chicago could
have produced and made successful in
those days and under existing conditions.
The world’s fair Avas really the foundation
o f Chicago’s great South Side, and the
Stockyards Bank takes pride in the part
it played in the development o f that great
section o f our great city.
“ Founded Avith the idea o f assisting in
every possible financial way the develop­
ment o f the livestock industry, it showed
a steady growth, and at the expiration o f
its original charter assumed the name o f
the National Livestock Bank.
“ This in turn, after a term o f years,
Avas followed by the Livestock Exchange
National Bank, which was simply the
earlier name fo r the present Stockyards
National Bank.
“ This bank has been and is now a lead­
ing financial institution o f the livestock
industry.
“ The list o f its board o f directors, past
and present, reads like a roll o f honor o f
prominent Chicagoans.
“ Such names as Lyman J. Gage, Sec­
retary o f the Treasury during M cKinley’s
administration; John B. Sherman, Nelson
Morris, John A. Spoor, Arthur G. Leon­
ard and those o f several members of the
Armour, Swift and Morris families are
included.
Capital and Earnings

350 Baths

MONG its former presidents are W .
A. Heath, at present chairman of the
Federal Reserve Bank o f Chicago, and
Melvin A. Traylor, iioav president o f the
First National Bank o f Chicago.
“ The bank’s home, a replica o f the
shrine o f the American Liberty, Inde­

A

June 1930

pendence Hall, is located at 4150 S. Halsted street.
“ The latest financial statement o f the
Stockyards National Bank shows capital
o f $1,350,000; surplus, $5,000,000; undi­
vided profits, $332,821; reserves, $101,955,
and deposits, $19,250,705.
“ The statement o f the Stockyards
Trust & Savings Bank, the stock o f which
is trusteed for the stockholders o f the na­
tional bank, is as folloAvs : Capital, $337,500; surplus, $337,500; undivided profits,
$196,936; reserves, $164,674, and depos­
its, $8,898,332.”
The Stockyards National is particularly
well known to loAva bankers through their
frequent contact Avith one o f the bank’s
most popular officials, Alden S. Bagnall,
assistant cashier, who travels this terri­
tory. Mr. Bagnall was present at the
IoAva Group meetings and will attend the
state convention in Davenport.
P la n A n n u a l P r o g r a m

Leading bank and investment libra­
rians, members o f the Financial Group o f
the National Special Libraries Associa­
tion, have planned a di\Tersified program
o f activities fo r the twenty-second annual
convention o f that organization to be held
in San Francisco, June 18tli to 21st. The
Financial Group is well known to com­
mercial and investment bankers through
its annual display o f a “ model financial
library” at the American Bankers A s­
sociation and Investment Bankers A s­
sociation Conventions, and through its
distribution at these conventions o f litera­
ture on the formation and selection o f
books fo r bank and investment libraries.
An outstanding feature o f the Finan­
cial Group session on Wednesday after­
noon, June 18th, Avill be an address by
HoAvard
W hipple,
noted
California
banker and author o f magazine articles
on banking subjects. Another speaker at
the same meeting will discuss aids in in­
vestment research Avith particular em­
phasis on western sources o f research
material.
The second group meeting will be con­
fined to a study o f the everyday problems
o f financial libraries. A review will be
made o f magazine articles and books in
the field o f finance, appearing during the
past year.
Other subjects which the
group will consider are handling o f news­
paper clippings and placing o f magazine
subscriptions.
Plans for the group program are in the
hands o f Miss Dorothy Watson, Bankers
Trust Company, N oav York, who is being
assisted in arrangements by Miss Eleanor
Cavanaugh, Standard Statistics Com­
pany, New Y ork; Miss Ethel Baxter,
American Bankers Association, New York;
Miss Marguerite Burnett, Federal Reserve
Bank, o f NeAV York and Miss K . Dorothy
Ferguson, Bank o f Italy, San Francisco.
Miss Margaret Reynolds is vice president
o f the Association.

101

South Dakota
B ank N ew s
Officers South Dakota Bankers
Association
P resid en t.........................Thomas
Hoven

O ’Brien

V ice P resid ent................... A . B. Cahalan
M iller

TH O M A S O ’B RIE N
President

S ecretary...................George A . Starring
Huron
T rea su rer............................H. E. Edmunds
Yankton

GEORGE H. S T A R R IN G
Secretary

Dakota Convention
Program
P r o g r a m o f T h ir t y -N in t h A n n u a l
C o n v e n tio n

South Dakota Bankers Association
Aberdeen, South Dakota,
June 11-12-13, 1930
Wednesday, June 11th
10 :00 a. m.
to
1 :00 p. m.
1 :30 p. m.

Registration.
Lobby
of
Alonzo W ard Hotel.
Golf Tournament at Aber­
deen County Club.
F or
Members, Associate Mem­
bers
and
Guests.
No
Green Fees for those Reg­
istered.
Registration Continues.

8:00 p .m .

Open House — Mezzanine
Floor, Alonzo W ard Hotel.
Meeting
of
Executive
Council.
Thursday, June 12th
8 :00 a. m Breakfast fo r 1930-31 Offi­
cers o f Group Associations
and Officers and Execu­
tive Council o f S. D. Bank­
ers Association.
8 :00 a. m. Registration Continued.
10 :00 a. m. Special Entertainment for
Visiting Ladies.
10 :00 a. m.

Morning Session in Alonzo
Ward Ball Room.
Call to Order -— Thomas
O’Brien, President.
Invocation— Rev. John E.
Booth, Pastor o f First
Evangelical Church.
Address of Welcome— John
Wade, Mayor o f Aberdeen.
Response— A. B. Cahalan,
Vice President.
President’s
Address —
Thomas O’Brien.
Treasurer’s Report — H. E.
Edmunds.


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Federal Reserve Bank of St. Louis

Secretary’s Report— Geo. A.
Starring.
Appointment o f Commit­
tees.
RECESS.
1 :00 p. m. Luncheon fo r
Registered
Ladies at Aberdeen Coun­
try Club.
1 :30 p. m. Afternoon Session in Alonzo
W ard Ball Room.
M usic: Duet •
— (Selected)
Miss Louise Milligan and
Professor Paul Pence.
Address: “ Looking Ahead
for South Dakota,” — W .
C. Allen, Aberdeen, Presi­
dent o f South Dakota
State Chamber o f Com­
merce and Publisher o f the
Dakota Farmer.
Address: “ The Associated
Press” — R. P. Howard,
Sioux Falls, State Cor­
respondent, The Associ­
ated Press.
A ddress: “ Fighting Finan­
cial Fraud” — Dr. B. F.
Battin, New York City,
Resident Vice President,
the National Surety Com­
pany.
6 :30 p. m. Banquet at the First Pres­
byterian Church.
Toast­
master, Hon. Geo. H.
Fletcher.
Admission by
R e g i s t r a t i o n Ticket.
Awarding o f Golf Tro­
phies. Special Entertain­
ment.
9 :00 p. m. Dance
at Trianon Ball
Room. Merry Makers Or­
chestra.
Admission by
Registration Ticket.
Friday, June 13th
9 :30 a. m. Morning Session in Alonzo
Ward Ball Room.
A ddress: “ A Few Legal
Phases o f Banking” — I. A.

Churchill, Huron, Counsel
fo r South Dakota Bankers
Association.
Address : “ The Northwestern
Business Situation” — O.
S. Powell, Minneapolis,
Statistician fo r the Fed­
eral Reserve Bank.
Address : “ A Suggestion for
Law Enforcement” — E.
G. Wilkinson, Milesville,
President,
West
River
Stock Growers Protective
Association.
Address: “ A W ay to More
Banking Profits” — W . L.
Brooks, Bemidji, Minne­
sota, President, Northern
National Bank.
RECESS.
12 :00 m.
Golf Breakfast for Visiting
Ladies at Aberdeen Coun­
try Club.
1 :30 p. m. Afternoon Session in Alonzo
Ward Ball Boom.
Reports o f Standing Com­
mittees :
Five Minutes Each
Agriculture— C. L. Chase,
W illow Lake.
Cost Analysis— Don W . DeVey, Westport.
Insurance— M. F. Patton,
Mitchell.
Legislation— W . F. Mailand,

Mobridge.
Protective— M. Plin Beebe,
Ipswich.
Public Relations — Ira A.
Moore, Sioux Falls.
Service Charges — L. M.
Larsen.
W essington
Springs.
Standard Forms— Geo. C.
Fullinweider, Huron.
Taxation— J. W .
Bryant,
Mitchell.
Report o f Auditing Com­
mittee.
Report o f Resolutions Com­
mittee.
Election o f Officers.
Selection o f 1931 Conven­
tion City.
ADJOURNMENT.
Meeting o f Executive Coun­
cil.

Special Meetings
The following meetings have no con­
nection with the South Dakota Bankers
Association but they are held at this time
fo r the sake o f convenience.
(1) 5:30 p .m .— Thursday, June 12th

Meeting of Members of the American
Bankers Association
Chairman, Clarke Bassett, State Vice
President.
Purpose : To elect
1.
A State Vice President to Serve One
Year.
N orthw estern B anker

Jane 1930

102

Sell Your Farms
Easier and at a
Higher Price . . .

2. A Member and an Alternate Member
o f Nominating Committee.
3. State Vice Presidents f o r :
State Bank Division
National Bank Division
Savings Bank Division.
Trust Company Division.
(2) 4:30 p .m .— Friday, June 13th
Meeting o f State Bankers for the Elec­
tion o f a Nominating Committee fo r De­
positors Guaranty Fund Commission. (In
accordance with Sec. 9006, South Dakota
Revised Code. 1919.)

Do you have one or more
farms on your hands that
you had to take over on
mortgage foreclosure? Tile
drainage will sell t h e m
easier and bring you a
higher price— enough more
to leave you a nice profit
over the cost of the tiling.
K e e n business farmers
know t h a t tile drained
farms give larger yields,
give a crop every year, and
give them a larger net in­
come from t h e i r year’s
work than do undrained
lands. That is why they
will pay more for them.
Tile the wet spots, and the
cold and slow spots, on
your farm. You will get a
larger income while you
own them, and they will sell
easier and to a better ad­
vantage.

The new First National Bank o f How­
ard, South Dakota, has been merged with
the Miner County Bank, and will continue
to function as the Miner County Bank in
its present location.

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I n c o r p o r a te at G r e g o r y

Articles o f incorporation have been filed
with the secretary o f state by the North­
western Bank o f Gregory, South Dakota.
Most o f the stock in the bank is owned by
the Northwest Bancorporation o f Minne­
apolis. The board o f directors consists
o f L. H. Nollkamper, William Nollkamper, H. E. McKee, J. A. Fulwider and
Carl Von Seggern, all o f Gregory. The
capital stock is $25,000.

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Northwestern Banker

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

June 1930

The largest attendance in the history of
the South Dakota Bankers Association
occurred this year when bankers and their
families attended the eight Group Meet­
ings throughout the state. According to
report issued by George A. Starring Sec­
retary o f the Association, 375 banks were
represented, with a total attendance o f
I . 044.
G roup One

The officers a re : president, F. S. Strobehn, W agner; vice president, Scott Ban­
bury, Geddes; secretary-treasurer, Jack
Kaberna, Wagner. The Executive Com­
mittee includes: Bon Homme— R. W .
Griffith, A von ; Charles Mix— H. F. W ar­
ner, Geddes; Douglas— E. E. Dubes, A r­
mour; Clay— M. J. Chaney, Vermilion;
Hutchinson— J. W . Ullmer, Menno; Tur­
ner— F. E. Jackson, Hurley; Union—
Lawrence Authier, Elk Point; Yankton—
J. M. Lloyd, Yankton.
The 1931 meeting will be held at W ag­
ner.
G roup Two

Tw o B anks B ecom e O ne

C. 0. Gorder, Deadwood, was elected
president o f group eight o f the South
Dakota Bankers Association at its group
meeting at Spearfish. Guy Bailey, Whitewood, was elected vice president, and B.
E. Colby, St. Onge, secretary-treasurer.
Walter Dickey, Spearfish, is the outgoing
president.
More than 100 bankers attended the
meeting, representative o f Butte, Custer,
North Meade, South Meade, Pennington,
Fall River, Haakon, Jackson and Law­
rence counties. Mr. Colby presided.

B a n k e r s E le c t

A c c o u n ta n ts

Group Bankers Elect Officers

H. W . Shaw o f Parkston, was elected
president o f group three o f the South
Dakota Bankers Association. Tom Brisbine o f Woonsocket, is vice president and
J. M. Patton o f Mitchell, is secretary.

S o u th

D a k o ta B a n k s J o in C h a in

Acquisition o f four new banks, three
in South Dakota and one in Montana, was
announced by the Northwest Bancorpora­
tion, bringing the number o f units in the
holding company to 109.
The new members are the Bank o f
Spearfish, Spearfish, S. D .; First Nation­
al Bank, Groton, S. D .; First National,
Mobridge and Manhattan State, Manhat­
tan, Mont.

The officers a re : president, Claus
Hegnes, B altic; vice president, P. J.
Kennefick, Dell R apids; and secretarytreasurer, H. W . Mitchell, Madison. The
Executive Committee includes: Lake—C. A. Stensland, Madison; Lincoln— Louis
Jacobs, Lennox; Miner— B. R. Laird,
Fedora; Minnehaha— O. V . Meyhaus,
Sioux Falls; McCook— Wm. Hoese, Spen­
cer; Moody— A. B. Larson, Egan; Turner
-—Earl Hansen, Parker.
The 1931 meeting will be held at Madi­
son.
G roup Three

The officers are : president, W . H. Shaw,
Parkston; vice president, T. M. Brisbine,
W oonsocket; and secretary-treasurer, J.
M. Patton, Mitchell. The Executive Com­
mittee includes : Aurora— F. R. Loevinger,
White Lake; Brule— W . A. McMillan,
Pukwana; Davison— J. M. Newell, Mount
Vernon; Hanson— Jacob Schiltz, Alex­
andria; Hutchinson— A. G. Bauer, Dim­
ock; Jerauld— L. M. Larsen, Wessington
Springs; Jones— C. E. Lange, Murdo;
Lyman— E. A. Smith, Oacoma; Sanborn
— W. A. Anderson, Letcher.
The 1931 meeting will he held at
Mitchell.
G roup F ou r

The officers a re : president, F. A. Olson,
Toronto; vice president, A. R. Johnson,
Brookings; and secretary-treasurer, Geo.
K . Burt, Watertown.
The Executive
Committee includes : Brookings— Robert
Henry, V olga; Clark—-W. A. Hicks, Car­
penter; Codington — Henry Hanten,
Watertown; Deuel— A. G. Berger, Clear
Lake; Grant— Geo. Berg, Stockholm;
Hamlin— C. N. Halvorsen, Castlewood.
Nominated to Executive Council— J. A.
McGillivray, Garden City.
The 1931 meeting place has not yet been
selected.

103
G roup F ive

The officers a re : president, Russell
Bard, Miller; vice president, H. A. K opperud, Lake Preston; secretary-treasurer,
Geo. M. Townsend, Huron. The Execu­
tive Committee includes: Beadle— L. 0.
Anderson, Hitchcock; Paulk— J. P. Shirk,
Faulton; Hand— C. W . Gardner; Ree
Heights; Hughes— L. L. Branch, P ierre;
Hude— R. J. Drew, Highmore; Potter—
R. Richardson, Gettysburg; Spink— M. J.
Twiss, Doland; Sully— Arthur J. Owens,
Onida; Kingsbury— T. H. Meyer, DeSmet.
The 1931 meeting will be held at Huron.
G roup Six

The officers are: president, J. H. K is­
singer, H ecla; vice president, J. Schad,
R oslyn; and secretary-treasurer, Robert
Weidenbach, Aberdeen.
The Executive
Committee includes: Brown — A. T.
Hagen, Claremont; Marshall— V. E.
Swenson, Langford; Day— Andrew Hedman, W ebster; Grant— W. S. Given, Milbank ; Roberts— Henry Helvig, Sisseton.
The 1931 meeting will be held at Milbank.

zer, Morristown; Dewey— Hans Johnson,
Isabel; Edmunds— H. C. Gross, Bowdle;
McPherson—A . H. Schumacher, Eureka ;
Perkins— J. K . Clark, Lemmon; W al­
worth— Jacob Helm, Java; Ziebach— 0. S.
Nygaard, Dupree.
The 1931 meeting will be held at M o­
bridge.
G roup E ight

The officers are: president, C. 0.
Gorder, Deadwood; vice president, Guy
Bailey, W hitewood; and secretary-treas­
urer, B. E. Colby, St. Onge. The Execu­
tive Committee includes : Butte— T. C.
Gay, Belle Fourche; Custer — Geo.
Havens, Custer ; Fall River— G. C. Smith.
Hot Springs; Haakon— J. C. Kelson,
Philip; Jackson— L. A. Pier, Belvidere;
Lawrence — George Blake, Spearflsh;
Meade— Harold Walker, Sturgis; Pen­
nington— E. M. Gentry, Hill City. Nom­
inated to Executive Council— W . B. Pen­
fold, Belle Fourche.
The 1931 meeting will be held at Belle
Fourche.

G roup Seven

The officers a re : president, Charles
Christen, R oscoe; vice president, R. A. H.
Brandt, B ison; and secretary-treasurer,
Peter F. Gores, Mobridge. The Execu­
tive Committee includes : Campbell-—W .
C. Peterson, Pollock; Corson— H. W . Bat-

N e w B a n k at H u r o n

The Security National Bank o f Huron,
S. D., organized under the sponsorship o f
o f the First Bank Stock Corporation, had
its formal opening Saturday, May 17, in
the neAV banking structure just completed

on the corner o f Wisconsin Avenue and
Third Street.
The newT Security National is planned
as a key unit o f the First Bank Stock
Corporation group system in South Da­
kota. It is capitalized at $200,000 with a;
paid in surplus o f $50,000 and undivided
profits o f $10,000, the largest initial cap­
italization o f any bank ever organized in
the state. It becomes the 12th affiliate
o f the First Bank Stock Corporation in
South Dakota.
Fred D. Greene, formerly of Miller, is
president. With him in the management
are associated Max Royhl, Huron attor­
ney, vice president; C. W . Boteler, cash­
ier; C. C. Smith, assistant cashier, and
Gladys Murray, assistant cashier.
Directors include: H. A. Wagner, T. T.
Parker, Max Royhl, A. R. Hannum, Dr.
Harry D. Sewell, F. D. Greene, J. A.
Miner, Ralph Jones, and C. W . Boteler.
Jones: “ Sorry, old man, that my hen
got loose and scratched up your garden.”
Smith: “ That’s all right— my dog ate
your hen.”
Jones: “ Fine. My car just ran over
your dog.”
The greatest mystery about a human
being is— the manner in which he con­
trives to put in twenty-four hours a day.
— Sinclair Lewis.

L ive S to ck N a tio n a l Bank
SIOUX

CITY,

IOW A

S p EED up co llection on your live stock items
to Sioux City by using our specialized service.
O u r strateg ic location at the stock yards plus
35 years of experience assures prompt and efficient service.

AFFILIATED


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W I LM

C o mb i n e d

NORTHWEST
Resour ces

over

Ü B B
i

Northwestern Banker

June 1930

104

This department of THE NORTHWESTERN BANKER is to
assist subscribers in obtaining goods or service hard to find.
It is free to subscribers. To non-subscribers the charge is
five cents per word. Use it. ASK ITS, as we can tell you
where to buy anything you need in your bank or for your
bank. TELL US, as your “ want” will be published under
the above heading free o f charge. In answering classified
advertisements which have key numbers please enclose a
two-cent stamp. This is used to forward your letter.
Position wanted as cashier or manager
of a good country bank in a town of
1,000 or better. Seventeen years of ex­
ecutive experience, can take full charge
of bank. Highest references from bank­
ers and Nebraska banking department.
Age forty years. Can invest if neces­
sary. Address No. 3133, care Northwest­
ern Banker.— 6
Trust man available. An exceptionally
successful trust man, who has excellent
reasons for desiring a change. Has had
14 years’ experience as cashier and trust
officer in a national bank, and has
changed positions but once during that
time. Is law trained, and a strong ad­
vertising man. Fully competent to take
care of all the details of organizing and
conducting a trust department success­
fully. Address No. 3132, care North­
western Banker.— 6
Wanted— Position in some good going
bank or corporation in real live school
and church town. Would invest in small
block of stock after position proves to

be satisfactory. Over 15 years of bank­
ing experience. Am still employed, serv­
ing the bank for ten years as cashier.
Married, age 39, Protestant. Good re f­
erences. Available on sixty days’ notice.
Address No. 3134, care Northwestern
Banker.— 6-9

ant cashier in good bank. A ge 27 years,
single, American, Protestant. Six years
experience in all lines o f banking. Was
assistant cashier when bank closed. A d­
dress No. 3137, care The Northwestern
Banker.— 6.

High Type Security Salesmen: One of
Iowa’s oldest bond houses is seeking ca­
pable and successful salesmen to repre­
sent it in Sioux City, Dubuque, Davenport
and Council Bluffs. Preference will be
given to those having experience as pro­
ducers. Inquiries confidential. Address
No. 3135, care The Northwestern Banker.
— 6.

An Idaho man was fishing in Lake
Cresson recently. He caught a big bass,
the biggest he ever had landed in his long
and busy life. He was elated. He was
crazed with jo y and he telegraphed his
w ife: “ I ’ve got one, weighs seven pounds
and it is a beauty.”
The following was the answer he got:
“ So have I, weighs ten pounds. Not a
beauty— looks like you. Come home.” —
L ife Aetna-izer.

Bond Department Opening: An Iowa
investment house has opening for high
calibre man in bond department to call on
banks and fraternal organizations. Man
with banking experience or connections
preferable. Address No. 3136, care The
Northwestern Banker.— 6.
Position Wanted: As cashier or assist­

Lost Time is never found again; and
time enough always proves little enough.
— Benjamin Franklin.

C H IC A G O ’S

M orrison H otel
Corner Madison and Clark Streets

Closest in the City to S to r es O ffic e s
Theatres and Railroad Stations
,

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Every guest room is outside, with bath,
running ice water, bed-head lamp and
Servidor. Each floor has its own house­
keeper and the hotel’s garage has exten­
sive facilities for car storage. Rates are
extremely moderate— $2.50 up— because
valuable subleases at this location pay all
the ground rent and the saving is passed
on to the guests.

oil
The Tallest Hotel in the World

. . .

46 Stories High

Write or Wire for Reservations
June 1930

105
P io n e e r B a n k s

Nebraska
Bank News
Officers Nebraska Bankers
Association

A. N. M A T H E R S
President

P resid en t...................... A. N. Mathers
Gering
Chairman of the Executive Council
............................. ........... A. O. Riley
H astings
T reasurer.................................... Denm an Kountze
WM. B. HUGHES
S ecreta ry.................... W m . B . Hughes
Secretary
Omaha

H a s S ix ty -fifth B ir t h d a y

This month marks the sixty-fifth birth­
day of the Otoe County National Bank,
at Nebraska City, Nebraska. The bank­
ing institution was organized in May,
1865, with a capital o f $50,000 and with
Julian Metcalf as president.
Today the capital surplus and profit
o f the institution reaches the 690,000
mark. Minute books in the bank’s books
date back only to 1910, when O. A. Kimmel was president and William H. Pitzer,
vice president. The remaining 45 years
are blank as far as actual records are
concerned.
The present personnel o f the bank in­
cludes: H. F. Meyer, vice president; A. E.
Stocker, cashier; H. H. Teten and J. D.
Stocker, assistant cashiers; J. F. Cole
and Ralph Christie, bookkeepers and
Katherine Bosworth, stenographer.

ence in the banking business— seven years
in the First National, at St. Edward; two
years in the Newman Grove State Bank
and seven years in the Potter State Bank.
He came to Monroe from Potter about
three months ago. Mr. Larsen, who will
be his assistant, came to Monroe recently
from Newman Grove where he had two
years’ experience in the banking business.
Messrs. Lammers, Liglitner and Kummer
are all well known farmers living near
Monroe.
The new organization has taken over
the building and fixtures and some o f the
good notes o f the former bank which;
closed last October.
The bank started business with a paid
up capital of $24,000; surplus o f $4,800;
cash reserve o f 110 % ; assets totaling
$83,000 and deposits o f about $54,000.

C. L. Ellis, o f Stratton, Nebraska, has
acquired an interest in the Farmers State
Bank, at Hemingford and moved to that
city.
He will be in partnership with
Clyde Ray and Otto Uhrig in the bank
and he will hold the position of vice
president.
Mr. Ellis has been in the banking busi­
ness fo r a long time, and is a former ex­
aminer o f national banks.
C o m p le t e R e o r g a n iz a tio n

Reorganization o f the Bank o f Monroe,
Nebraska, has been completed, the new
organization has received its charter from
the state banking department and opened
for business May 19.
R. E. Wiley, for many years a promi­
nent resident of that community, is presi­
dent; John Lammers, vice president;
F. C. Harris, cashier and Chester L. Lar­
sen, assistant cashier.
Wiley, Harris,
Lammers, Charles I. Liglitner and W il­
liam Kummer comprise the board of
directors. The bank has about 20 stock­
holders, all business men and farmers o f
Monroe and vicinity.
Mr. Harris, who will be actively in
charge has had nineteen years’ experi­

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Federal Reserve Bank of St. Louis

Boot

“ Idaho Bill” — whose real name is Col.
B. F. Pearson— doesn’t believe in banks.
This Nebraska man, who ropes wild
animals, carries his money in his boots—
and he carries a lot o f it in big denomi­
nations, his roll probably being a couple
o f ten thousand dollar bills and a few
thousand dollar bills. But he has never
lost a cent to robbers.
Once, while on a visit to Norfolk, Idaho
Bill displayed his roll to a party o f
friends, among whom was Congressman
Edgar Howard.
Even though he was
among friends, Idaho Bill pulled out a
six-gun along with the roll, and the gun
is the reason why robbers never have
taken his roll.
“ I never saw so much money in one
roll in the hands o f one individual in all
my life ; just let me feel it for the his­
torical value,” Congressman Howard told
Idaho Bill. And for a few moments, bills
o f $5,000 and $10,000 were passed around
fo r inspection.
Colonel Pearson has spent all o f his
early life amid the hardships of the Amer­
ican frontier. He was an old-timer on
the Oregon trail in the days when Indian
fighting was the pastime.
Despite his number o f years, Idaho Bill
still captures wild animals for circuses, a
pastime that he has been at for many
years. He spends much o f his time in
Mexico, where he captures many o f the
wild animals.

T lie d fo r d B a n k R e o p e n s
W i l l R e o r g a n iz e

A c q u ir e s B a n k H o ld in g

in

Reorganization o f the Bank o f Florence,
Nebraska, was assured at a meeting o f the
stockholders when a committee o f five was
named to take charge o f affairs and com­
plete plans fo r the re-opening. The com­
mittee is composed o f H. L. Helfrich,
William Barber, Jacob Weber, William
Stoltenberg and J. C. Suttie. State Bank­
ing Commissioner George W . Woods,
declared there should be no heavy losses.

The Citizens State Bank, Thedford,
Nebraska, closed by its officers March
31st, reopened fo r business without a cent
o f loss to its depositors.
The institution has been reorganized
without the depositors being forced to
accept a write-down o f their deposits,
which totaled $55,000 at the time o f
closing. J. W . Mann is the new cashier.

G r o u p T h r e e M e e ts at N o r f o lk
St. P a u l B a n k s N a tio n a liz e

Both o f the state banks o f St. Paul,
Nebraska, nationalized recently. The St.
Paul National Bank and Citizens State
Bank becomes Citizens National Bank.
Both have a capital o f $25,000, surplus o f
$15,000 and deposits approximating
$450,000.
Pauline Paul Arterbum is president o f
the St. Paul National, and F. R. Haggart
vice president and cashier, and Frank J.
Taylor is president o f Citizens National,
and F. T. Shaughnessey, cashier. Deter­
mination to get away from state legisla­
tive uncertainties is given as reason for
change. Both have set aside assessments
due in 1930, and await outcome o f pend­
ing litigation.

F or the annual meeting of Group 3, o f
the Nebraska Bankers association, Nor­
folk, as usual, Avas the convention city.
T avo hundred thirty-three bankers at­
tended, being welcomed to the meeting by
President 11. L. Gerhart o f Newman
Grove and Mayor John F. Dudgeon o f
Norfolk.
The response was by S. D.
Thornton, Jr., o f Neligh, president o f
the Security State Bank.
Because o f the absence o f President A.
N. Mathers o f the state association, Avho
was in Washington and had been detained
there on business, Secretary William B.
Hughes, o f the association, spoke. Re­
ports Avere made by Fred W . Muller,
secretary, and A. G. Zuhlke, treasurer.
R. I. Stout, president o f the First Na­
tional Bank o f Tekamah and a member
N orthw estern B anker

June 1930

106
o f the regional clearing house committee
o f the state association, outlined the work
o f the regional clearing houses and urged
that the fifth in Nebraska he established
in the Norfolk territory.
George W . Woods, state bank com­
missioner, discussed the present method
o f bank examination and the problems o f
his department.
The following officers for the coming
year were elected:
President, Rollie W . Ley, president
National Bank o f W ayne; vice president,
W . F. Wenke, cashier of the Pender State
Bank; secretary, Fred W . Muller, cashier,
Security State Bank, N orfolk; t r e a s u r e r ,

A. G. Zulilke, vice president, First Na­
tional Bank, Bancroft.
A t the banquet, J. R. Cain, Jr., vice
president o f the Omaha National Bank,
was toastmaster, and A. H. Bolton o f
Sioux City, was the principal speaker.
S E C R E T A R Y W I L L I A M B.
HUGHES, o f the Nebraska Bankers A s­
sociation reports a liberal response to the
proposal for the establishment o f a state­
wide credit bureau. Asking fo r an ex­
pression o f opinion from every bank, he
points out the features o f the plan, as
follows :
“ This plan o f giving the association a

MIDLAND BANK
LIM ITED

A

C o m p le te

B a n k in g

S e rv ice

The Midland Bank offers exceptional facilities
for the transaction of banking business of every
description. It has offices in the Atlantic Liners
“ A q u i t a n i a ” “ B e r e n g a r i a ” “ M a u r e ta n ia ”
and with affiliated banks operates over 250 0
branches in Great Britain and Northern Ireland.
The offices in Poultry and at 19 6 Piccadilly are
specially equipped for the use and convenience of
American visitors in London.

list o f your borrowers, without amounts,
costs you nothing but a little clerical work
in making up the list.
“ You are then privileged to ask for the
lists o f your nearby banks with which
you might possibly have duplicated loans
unknown to yourself; but if you feel that
these would not be helpful to you, and
you do not purchase them from the
bureau, then this state-wide credit bureau
does not cost you anything.”
UNDER THE A U SPICE S of the state
college of agriculture, the bankers asso­
ciation again this year sponsored a twoday bus trip with a short course study on
soils and farm management. The Mort­
gage Bankers Association o f Nebraska
cooperated.
THE OM AH A D IV IS IO N o f the
American Institute o f Banking has elected
G. F. Kroeger, of the trust department
o f the Omaha National Bank, as presi­
dent; Milton F. Barlow, United States
National Bank, vice president ; Karl G.
Kaide, First National Bank, Council
Bluffs, Iowa, secretary; Harold K. Albus,
Omaha National Bank, treasurer.
W IT H A C A P IT A L STOCK o f $30,000 the City National Bank o f Greeley,
Nebraska, opened its doors May 1st. Offi­
cers are J. M. McQuillan, president;
P. J. Rooney, vice president; Frank
Horan, cashier. Greeley had been Avithout a bank since December 28, 1929.
D e a th o f F r a n k B o y d

H e a d O ffice :
Or'Srseas B r a n c h :

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POULTRY, LONDON, E.C. 2

1 2 2 OLD BROAD STREET, LONDON, E.C. 2

Frank Boyd, ATce President o f the
Omaha National Bank, died May 17th,
folloAving an illness o f several Aveeks.
Mr. Boyd had been connected with the

FRANK BOYD
Born, December 19, 1868
Died, May 17, 1930
Jane 1930

107
Omaha National Bank since 1892 and en­
joyed an unusually wide acquaintance
both among bankers in Nebraska and ad­
joining states and among bank officials
throughout the country. He was a mem­
ber o f the Reserve City Bankers Associa­
tion fo r many years and invariably at­
tended its meetings.
Mr. Boyd was born in Des Moines,
Iowa, December 19th, 1868, the son o f
Mr. and Mrs. Cyrus Boyd. The family
moved to Ainsworth, Nebraska, in 1884
and Mr. Boyd became a clerk in a general
merchandise store at the age o f sixteen.
Later he was employed in a bank in Ains­
worth. He came to Omaha in May, 1892,
as a clerk in the Omaha National Bank.
He was made assistant cashier in 1901,
cashier on January 9th, 1917, and vice
president on May 10th, 1917.
Funeral services were held Monday,
May 19th, with burial at Forest Lawn
cemetery, Omaha.

M EM BERS OF GROUP SEVEN, Ne­
braska Bankers Association, meeting at
Alliance, Nebraska, elected Charles Finagan, o f Hyannis, Nebraska, president;
R. E. Knight, o f Alliance, vice president
and H. B. Olson, o f Lisco, secretary.
They voted to hold the 1931 convention
at Hyannis. All speakers at the meeting
were unanimous in their expression o f
opinion that “ a dawn o f a better day”
is at hand fo r Nebraska banking.

GROUP F IV E , Nebraska Bankers A s­
sociation, on convention, at Kearney, Ne­
braska, made G. J. Taylor, o f North
Platte, president; A. T. Reynolds, Am ­
herst, vice president and F. J. Stibal,
Ogallala, secretary. The 1931 convention
will be held in North Platte.

o f the old institution accepted an 85 per
cent reduction in their accounts.
This is the 31st bank reopened under
the legislative plan.

Hanrahan has been associated with the
Central Hanover Bank & Trust Company
since October, 1928, and at the time o f
his appointment was assistant treasurer.

Is A s s is ta n t V i c e P r e sid e n t

R e la tio n s

The Central Hanover Bank & Trust
Company o f New York has announced
the appointment o f William R. Hanrahan as assistant vice president.
Mr.

Tommy (reading paper) : “ Daddy, what
are diplomatic relations?”
Father: “ There are no such people, my
boy.”

J L itlio g r a p liln g G o iiip a n ii
5 1 5 T W E N T Y E IG H T H S T R E E T

D e s M o in e s

cf o u n d e d
GEORGE
EDWIN

by

H. R A G S D A L E
G. R A G S D A L E

SECRETARY

H'BEJL
McCOOK, N E B R A SK A , was the meet­
ing place o f Group Four, o f the Ne­
braska Bankers Association, when Dale S.
Boyles, o f McCook, was elected president,
E. B. Woods, of Bartley, vice president;
and Vern Manahan, o f Hastings, was re­
elected secretary.
President A. N.
Mathers, o f the State Bank Association,
in an address, said “ Visionary Banking
Laws” o f 1909 and the excess number of
banks had brought about the ruinous con­
ditions o f the past years in banking, but
expressed the belief, echoed by the other
bankers, that banking in Nebraska would
enter its most prosperous era this year.
C le a r w a te r B a n k R e o p e n s

The Citizens State Bank, o f Clearwater,
Nebraska, closed October 21, last, re­
opened with capital stock of $20,000 and
$1,000 in surplus. J. W . Bennie is pres­
ident and H. D. Miller, cashier.
In the reorganization process, the state
banking department reported, depositors
N orth w estern B anker

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Federal Reserve Bank of St. Louis

June 1930

G R A IN A N D H A Y D R A F T
CO LLECTIONS
Given Special Attention
Try Our Service
Live Stock National Bank of South Omaha
Union Stock Yards
OM AHA

108
has held since 1921. Mr. Changstrom
has been assistant cashier.
Election of officers and selection o f next
“ This action,” said W . Dale Clark, pres­
year’s convention city closed the annual
ident, “ represents the advancement in both
meeting o f the South Dakota Bankers
instances o f men who have been with our
Association in Sioux Falls.
institution fo r many years, who entered
H.
A. Jacobson o f Vermillion, was
its employ in relatively minor capacities
elected state chairman; William Owsley o f
and who have won deserved promotion
Aberdeen, vice chairman; George Schad,
through successive steps by the service
Milbank, northern zone chairman; J. C.
rendered the bank and its customers.”
Drew, Murdo, western chairman, and
Mr. Alvison began work as an office
James E. Stout of Canova, southern zone
boy, August 3rd, 1890. A fter advance­
chairman.
ment through various departments he was
The next meeting place will be at Aber­
made cashier, January lltli, 1921.
deen next May.
Mr. Alvison is a graduate o f Omaha
High School, is treasurer o f the Nebraska
Humane Society and is a member o f the
E le c te d V i c e P r e sid e n ts
Athletic, Happy Hollow, University, Lions
and Elks Clubs and various Masonic
Otis T. Alvison and John A. Changorders.
strom have been elected vice presidents o f
the Omaha National Bank. Mr. Alvison
Mr. Changstrom was employed by the
retains also the title o f cashier which he
Omaha National Bank, September 2nd,
H o ld A n n u a l M e e tin g

1905, having previously been with the
First National Bank at Council Bluffs for
several years. He was made assistant cash­
ier January 11th, 1917, since which time
he has been partieffarly concerned with
the bank’s relationship writh its corre­
spondent banks.

The

Fourth Decade
and the

Fourth Expansion

OTIS ALVISON
Mr. Changstrom is chairman o f the
Good Will Committee o f the Chamber of
Commerce and is now on the trade trip
conducted by this committee. For many

Six spacious banking and trust floors
stand completed.

Providing facilities

lor prompt service they allow room for
a growing clientele to enjoy the closest
contacts

with

our

organization.

In

them The Northern Trust Company car­
ries the spirit of personal banking and
trusteeship into its fifth decade.

THE NORTHERN
TRUST COMPANY
N o r th w e s t C o r n e r L a S a lle a n d M o n r o e Sts.

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Federal Reserve Bank of St. Louis

C H IC A G O

JOHN A. CHANGSTROM
years he has been a director o f Carter
Lake Club and is director and treasurer
o f the Masonic Children’s Home. He is
a’ so a member o f the Athletic, Elks, NoonDay and Concord Clubs.
The best o f all ways to lengthen our
days is to steal a few hours from the night.
•
— Thomas M oore.

June 1930

109

^. 1

M in n e s o ta
B an k N ew s

Vi

Officers Minnesota Bankers
Association

w

P resid ent....................... R. W . Putnam
Red W ing

R. W . P U TN A M
President

V ice P resid en t........ C. B. Brom bach
Minneapolis
T reasurer....................... T. A . Perkins
W indom
S ecretary....................... George Susens
Minneapolis

W k i l l
GEORGE SUSENS
Secretary

Minnesota Convention
Program
HE Hon. Roy A. Young, o f the Fed­
eral Reserve Bank and Dr. Benjamin
Anderson, Jr., economist for the
Chase National Bank, are two o f the prom­
inent speakers scheduled for the 41st an­
nual convention o f the Minnesota Bankers
Association, to be held June 17-19 at the
St. Paul Hotel in St. Paul.
Describing the program and entertain­
ment in brief, Secretary George Susens
and President R. W . Putnam, have issued
the following bulletin:

T

A D V AN C E CONVENTION
H IG H L IG H T S
Registration, Tuesday at the St. Paul
Hotel. Golf and other forms o f enter­
tainment during the day. Smoker in the
evening.
The Annual H andicap G olf Tourna­
ment will be held this year on the beauti­

There will be a vaudeville performance
in the main dining room, followed by
dancing both in the main dining room and
the gymnasium. Buffet supper will be
served in the main lounge room.
Complete program will be mailed later.
R. W. P u t n a m , President.
G eorge S u s e n s , Secretary.

The speakers a re:
H on. R o y A . Young, Governor Federal
Reserve Board, Washington, D. C., fo r­
merly Governor o f Minneapolis Federal
Reserve Bank.
Should give up-to-theminute banking information.
Dr. Benjam in M. Anderson, Jr., Econo­
mist, Chase National Bank, New York.
A national authority on financial subjects.
His subject is, “ The Financial Situation.”
Earle Brow n, head o f Minnesota High­

way Patrol. There are great future possi­
bilities under this system. Bankers should
cooperate.
Chas. Collisson, o f the Minneapolis
Tribune. Presents some new farm figures
just out. His subject is, “ Agriculture’s
Great Come Back.”
Ralph Parlette, o f Chicago, famous
writer and humorist lecturer. He will
make your “ sides ache” at the Tuesday
evening smoker. His subject is, “ Go On
South! The Best Is Yet to Come!”
In d e p e n d e n t B a n k e r s O r g a n iz e

County bankers o f five congressional
districts in Minnesota met at Glenwood
recently and organized the Independent
Bankers Association “ to represent the
rights o f the independent bankers and to
preserve fo r the state o f Minnesota the
independent local bank.”
The Independent Bankers Association
o f Minnesota is the first state-wide or­
ganization to be instituted in the United
States fo r the purpose of maintaining
the independent or unit form of banking.
Need o f such an organization, it was
pointed out, is due to the growing tenden­
cy toward branch and chain banking,
which delegates to the convention stated,
gives evidence o f being evolved from the
present form o f group banking, now hav­
ing its largest development in the North­
west.
Officers elected by the Independent
Bankers Association a re:
President, Harry Lee, vice president,
Bank o f Long Prairie; vice president,
Oluf Gandrud, vice president, Swift Coun­
ty Bank, Benson; treasurer, W . W.
Churchill, vice president, Union National
Bank, Rochester; executive council, A. P.
Stoll, president, Fanners & Merchants

ful course at the Somerset Country Club
on June 17th, commencing at 1 :30 o ’clock
Attractive and appropriate prizes will be
awarded the winners. Everyone is in­
vited. Please register before playing golf.
Information concerning the tournament
may be had at the registration desk.
Inform al Get T ogether Sm oker, Tues­
day evening, June 17th, eight o ’clock. A
Practical Demonstration Showing How a
Good Board o f Directors Functions. A
talk by Ralph Parlette, humorist. Other
interesting forms o f entertainment and
typical “ Smoker” refreshments.
Entertainm ent fo r Ladies, Wednesday,
at one o’clock a luncheon will be given fo r
all o f the ladies at the Saint Paul Hotel
in the R oof Garden.
Prizes will be
awarded at the bridge party following the
luncheon.
Theatre tickets will be presented upon
request at the time o f registration for
those who wish to avail themselves o f the
privilege.
E ntertainm ent fo r everyone, Wednesday
evening, June 18th, St. Paul Athletic Club.

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June 1930

110

m

II R ea l

Cooperation
that embraces 130 different
services is the basic reason
for the phenomenal growth
o f the R epublic, w hich is
today one o f the country’s
outstanding bankers’ banks,
A jJc u s for particulars
of our service

The National Bank o f the
R E P U B L IC
• •

OP

CHICAGO

• *

Banking — Ail Departments
A FF I L I A T E D

CHICAGO TRUST
• C O M P A N Y -•

T H E

N A T IO N A L .
I ’ L l 1A 1 .1 c
•• CONI P A N Y - -

C o m p le te T r u s t S erv ice

I n v e s t m e n t S e c u r i ti e s a n d

I R e a l E sta te L oa n s

C o r p o r a te F in a n cin g

© N. B. R. 1930

Manufacturers and Printers o f
ENVELOPES o f Every Description

P R IC E

S E R V IC E

and
LCOURTESY

Q U A LITY

State Bank, Pierz; Theodore Aune, presi­
dent, Glenwood State Bank, Glen wood ;
B. F. Du Bois, president, First State
Bank, Sauk Center; Henry Sampson,
president, Bank o f Elbow Lake, Elbow
Lake; N. H. Tallakson, cashier, Bank o f
Willmar, W illm ar; Secretary, Robert D.
Beery, Long Prairie, Minn.
To represent the association at the
Congressional Bank Hearing in Washing­
ton, Elmer E. Adams, president, First
National Bank, Fergus Falls; J. R. Chap­
pell, vice president, Merchants Bank,
Winona.
The next meeting o f the Association has
been set fo r 3 o’clock in the afternoon,
June 17, at St, Paul. Notices o f the
meeting will be sent to all independent
bankers of the state.
Secretary Beery was elected at a meet­
ing o f the executive council immediately
following the convention. His home is in
Long Prairie and he is a banking official
o f long experience, having been a national
bank examiner and also a public examiner
fo r the state o f North Dakota,
Next to the actual organization o f the
association the matter o f representation
before the hearing now being conducted
by the committee on banking and currency
o f the House o f Representatives o f Con­
gress was deemed o f paramount impor­
tance. In so fa r as the convention had been
advised no independent bankers have
been supoenaed to appear before the com­
mittee to present the viewpoint o f the
unit banker. The convention deemed it
highly imperative that the unit banker be
given such representation and went on
record unanimously in favor o f the selec­
tion o f representatives to appear before
that committee.
Approximately 75 bankers attended the
convention, bad roads and recurring rain
storms having cut the attendance about
in half, according to the list that had sig­
nified their intention o f attending the
meeting. Having been held in the north
central part o f the state most o f the at­
tendance was from that area, the congres­
sional districts represented being the
First, Third, Sixth, Seventh and Ninth.
The farthest south delegates were from
Rochester, Stewartville and Watertown.
The convention had been called by the
Pope County Bankers Association. In
the absence o f Vern Weaver, cashier o f
the Farmers and Merchants State Bank
o f Lowry, president of the Pope County
Association, Theodore Aune, o f Glen­
wood, president o f the Glenwood State
Bank, acting for Mr. Weaver, called the
convention to order.
N e w C a s h ie r N a m e d

Ule Specialize in Bank Enuelopes of euerq Stqle
N orthw estern B anker

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

June 1930

Helmer Lind, o f Princeton, Minnesota,
has been chosen to act as cashier o f the
Farmers & Merchants State Bank, at
Zimmerman, taking the place o f Henry P.
Rust, who has resigned and will leave that
village. Mr. Lind has been employed at

Ill
the First National Bank, at Princeton,
for the past year.
Mr. Rust has been employed as cashier
at the Zimmerman bank for the past
eleven years.
E le c te d G r o u p P r e s id e n t

W . H. Jarmuth, o f Heron Lake, Min­
nesota, was elected president o f the Sec­
ond District Group, Minnesota Bankers
Association, at the closing business ses­
sion o f the convention.
St, James was selected as the conven­
tion city for 1931. Other officers elected
were Percy E. Lewis, o f Madelia, vice
president; L. T. Meyer, o f Westbrook,
secretary-treasurer. The executive com­
mittee is composed o f P. D. Belcom, o f
Mankato and W . T. Morgan, o f Pipestone,
besides the other officers.
A resolution indorsing work being done
by the protective division o f the state
association to prevent bank robberies, was
adopted by the convention.
A s s ig n e d N e w P o sts

Eugene C. Glasgow, assistant cashier,
has been assigned to duty in charge o f
the Northwestern National Bank’s new
savings department at Sixth Street and
Marquette Avenue, Minneapolis. He was
fo r several years manager o f the business
service department o f the bank and was
made assistant cashier last year. Henry
L. Bergquist, formerly manager o f the
bond department of the bank, has been
appointed manager o f the business service
department.

B a n k s C h a r te r e d

S eek s B a n k C h a r te r

Two Minnesota banks were issued char­
ters by the state commerce commission
it was announced by A. J. Yeigel, state
commissioner o f banks. The Union State
Bank of Thief River Falls, organized to
take over the First and Peoples State
Bank o f Thief River Falls, was given a
charter and the Union State Bank, o f
Marietta, received the other.

An application fo r a charter for the
Farmer’s State Bank, o f Webster, Min­
nesota, in Rice County, was filed with the
state commerce commission recently by
William W . Pye, o f Northfield and others.
The bank would have a capital of $20,000.
A hearing will be held June 10.

T h r ifty S an d y
C a sh ie r R e sig n s

Mr. O. H. Hitzemann tendered his
resignation to the director o f the First
National Bank, o f Swanville, Minnesota,
to take effect June 1st. Mr. Hitzemann
has been cashier o f the bank fo r the past
24 years.
Mr. John J. McRae, who fo r the past
23 years has been assistant cashier, was
elected cashier.

5P

Sandy (to his daughter) : “ Young Mc­
Pherson has asked me fo r your hand, and
I have consented.”
Daughter: “ You dear old dad!”
Sandy : “ So never mind going to the
dentist’s now to have that tooth pulled—
wait until you are married.”
The man who kills time murders oppor­
tunity.— Boston Herald.

•—m k h —z ^ x z r r r r ^ K iz z z r x K :

IXÎC

‘T H E T IM E H A S CO M E
— to use advertising as it was intended to be used, to stimulate business.
Never has there been a time for a clearer test. There are no adverse
factors except the mental hazards of last year’s stock slump in men’s
minds. The obstacle is psychological not physical.”
E rnest E lmo Ca l k in s ,

In the Review o f Reviews

In Buying Advertising
W hy Overlook Permanence

W i t h C o m p a n y 4 1 A ears

William A. Durst, president o f the
Minnesota Loan & Trust Co., Minneapolis,
recently celebrated the forty-first anni­
versary o f his entry into the service o f
the institution. In 1889, Mr. Durst came
to Minneapolis from his boyhood home
at Monroe, Wisconsin, and obtained a
job as bookkeeper with the Minnesota
Loan & Trust Co., which had just been
organized. He has been connected with
the company without interruption since
then. Congratulations from friends in
Minneapolis and many other cities were
received by Mr. Durst.
A t t a in s

round

c a le n d a r s
b e c a u se

c a rry

your

utility

of

year
attractiveness.

m e ssa g e

p lu s

B lo tte r s k e e p th e m e ssa g e o n th e d e sk .

th e

B o o k le ts

— b r id e , b a b y , g r a d u a tio n — are k e p t a lw a y s b e ­
ca u se o f s e n tim e n ta l v a lu e .

TH E LO N G ER TH E M ESSAGE LASTS—
T H E L E S S IT S C O S T T O Y O U !

M a jo r it y

The Midland National Bank and Trust
Company o f Minneapolis, became “ of
age” when it celebrated its twenty-first
birthday. The bank was organized May
17, 1909.
A t the time o f its organization, Midland
National had five officers and nine em­
ployes. Today it has sixteen officers and
one hundred twenty-five employes, ac­
cording to C. B. Mills, president. Re­
sources have increased over that period
from about $600,000 to more than
$ 22,000,000.

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

A rt

May we submit our proposition?

T h e Thom as D . Murphy Company
Red Oak, Iowa
The Birthplace of Art Calendars
NEW

YORK

C a le n d a r s —

C H IC A G O
D ir e c t M a i l •
—

Fans —

M aps —

B lo t t e r s —

TORONTO

LONDON

H o l i d a y G r e e t in g s —

G i f t L e a t h e r -—■ A d v e r t is i n g

B o o k le t s

P e n c ils

J
N orth w estern B anker

June 1930

112

— The Chase National Bank, The Equitable Trust
Company and Interstate Trust Company were formally merged as
On June 2nd,

I(fJ O

TH E

C hase N a t i o n a l B ank
o f the City o f dfiew York
Statement o f (fondition at (fiose o f Business, June 2nd, i g j o *
R E S O U R C E S
C a s h an d D u e f r o m B a n k s .......................

..................................... $

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

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

1 ,4 3 5 ,3 5 9 ,9 0 0 .6 4

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

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

2 2 8 ,7 1 0 ,5 9 6 .9 3

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

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

1 0 6 ,5 8 0 ,6 3 2 .5 1

R e a l E s t a t e ........................................................

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

3 4 ,7 7 1 ,6 4 3 .5 8

R e d e m p tio n F u n d — U . S . T re a su r e r

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

3 8 6 ,8 2 5 .0 0

C u s to m e r s ’ A c c e p t a n c e L ia b ility . . .

$ 1 7 2 ,1 8 4 ,0 6 9 .8 7

L e s s A m o u n t in P o r t f o l i o ..................

2 0 , 0 1 8 ,2 8 9 .1 4

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

5 9 2 ,4 5 8 ,3 0 8 .8 3

1 5 2 ,1 6 5 ,7 8 0 .7 3

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

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

L I A B I L I T I E S
C a p i t a l ...................................................................

..................................... $ 1 4 8 ,0 0 0 ,0 0 0 .0 0

S u r p lu s ..................................................................

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

1 4 8 ,0 0 0 ,0 0 0 .0 0

U n d i v id e d P r o f i t s ........................................

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

6 0 ,7 2 3 ,4 7 8 .2 7

R e s e r v e d fo r T a x e s , In te r e st, e tc . .

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

9 ,7 4 4 ,8 2 7 .5 9

D iv id e n d , P a y a b le J u ly 1 , 1 9 3 0 . . . .

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

5 ,5 5 0 ,0 0 0 .0 0

D e p o s i t s .............................................................

..................................... 1 ,9 1 6 ,2 3 6 ,3 1 3 .9 1

C ir c u la t in g N o t e s ........................................

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

A ccep tan ces

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

$ 1 7 6 ,7 7 5 ,8 9 9 .8 6

L e s s A m o u n t in P o r t f o l i o ...................

2 0 ,0 1 8 ,2 8 9 .1 4

1 5 6 ,7 5 7 ,6 1 0 .7 2

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

9 4 ,5 0 1 ,1 6 2 .9 0

7 ,7 3 6 ,5 0 0 .0 0

L ia b i li t y as E n d o r s e r o r M a k e r
o n A c c e p t a n c e s an d F o r e i g n B ills
O t h e r L i a b i l i t i e s ...........................................

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

Each Shareholder of The Chase National Bank is also the holder o f a like number of
shares of Chase Securities Corporation. Capital funds of Chase Securities Corporation,
which are in excess o f #125,000,000, are not included in the bank statement.
*This statement does not include the statements of any of the affiliated
organizations mentioned below

* Equitable Trust Branch— 1 1 Broad Street

Head Office—Pine Street corner o f Nassau

Forty-five other branches in Greater N ew York
F O R E IG N
L o n d o n , England ( 2 )

H a v a n a , Cuba

O F F IC E S

C r i s t o b a l , Canal Zone

L o n d o n R e p r e s e n t a t i v e : 1 4 Cornhill, E. C. 3
B e r l i n R e p r e s e n t a t i v e : Unter den Linden

P a n a m a C i t y , Republic of Panama

P a r i s R e p r e s e n t a t i v e : i Boulevard Haussmann

57

R o m e R e p r e s e n t a t i v e : Piazza Mignanelli,

3

^Affiliated Organizations:
CH ASE S E C U R IT IE S CO RPORATIO N
E Q U IT A B L E E A S T E R N B A N K IN G CO RPORATIO N
T H E CH ASE SA F E D EPO SIT CO M PAN Y

N orth w estern Banker

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

June 1930

•
•
•

A M E R IC A N E X P R E S S CO M PAN Y
A M E R IC A N E X P R E S S B A N K & T R U S T CO M PAN Y
T H E CH ASE B A N K ( P

a r i s

—

M e xic o

Cit y)

113
one o f Chicago’s big downtown banks, an­
nounced an increase in capital which with
stock purchase rights means upward o f
$4,400,000 to present stockholders.

Nortli Dakota
Bank News
Officers North Dakota Bankers
Association
President..................................................................R. E. Barron
Minot
Vice President..........................................................J . E. Davis
Goodrich
Secretary..........................................................W. O. Macfadden
Fargo

W. 0 . MACFADDEN
Secretary

D ir e c t o r o f B a n k

M e r g e r E ffe c tiv e A f t e r M a y 3 1

George Laney, Bismarck, has been
named a member o f the board o f directors
o f the First National Bank o f Napoleon,
North Dakota, according to an announce­
ment made by F. B. Heath, cashier.

The physical consolidation o f the
Equitable Trust Company o f New York
and the Interstate Trust Company with
the Chase National Bank became effec­
tive after the close o f business May 31st.
The three banks concluded business as
separate institutions on Saturday, May
31st and reopened on Monday, June 2nd
as a consolidated organization, which
will function under the name and char­
ter o f the Chase National Bank o f the
City o f New York.

I n C o n s o lid a tio n

Consolidation o f the Argusville State
Bank and the Mapleton State Bank with
the Merchants National Bank and Trust
Company o f Fargo, North Dakota, an
affiliate o f the First Bank Stock Corpora­
tion, was announced recently by P. J.
Leeman, vice president and general man­
ager o f the holding company.
Argusville and Mapleton are Cass
County towns which, with the development
o f good roads, have become suburban to
Fargo, the county seat. The Merchants
National assumes the deposit liability o f
the two banks, totaling approximately
$170,000 and takes over assets covering
the liability, the stockholders receiving
the balance o f assets above the deposit
liability.

B a n k at L a n g d o n

Affiliation o f the Northwestern, o f
Langdon, North Dakota, with the First
Bank Stock Corporation has been an­
nounced by L. W . Scholes, vice president
o f the holding company. The Langdon
bank becomes the 20 th affiliate o f the
First Bank Stock Corporation in North
Dakota and the 105tli member o f the
group.
The Northwestern Bank is capitalized
at $25,000 with surplus and undivided
profits o f $25,535.42. Its officers include :
President, T. J. Smith, Grand Forks;
vice president, A. O. Aune, Langdon ;
cashier, L. C. W ick ; assistant cashiers,
Gus Hartman and E. H. Lorens.
Mr. Aune is an addition to the execu­
tive staff. He was formerly cashier o f the
Farmers State Bank, o f New Rockford,
which was absorbed by the First National
o f New Rockford, an affiliate o f the First
Bank Stock Corporation.

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

Stockholders o f the three banks and
their affiliated securities corporations
approved the merger at special meetings
on A pril 24th and ratified t;he plans
agreed upon by the respective boards of
directors fo r carrying it into effect.
The present home o f the Chase Na­
tional Bank, at Pine Street, corner o f
Nassau, will he the head office o f the
consolidated bank.
The present main
office o f the Equitable Trust Company
at 11 Broad Street, will be operated as
an important unit o f the consolidated
bank, with complete facilities fo r han­
dling clients’ business.
A s soon as
stockholders gave official approval to the
merger, alterations were started at the
head offices o f both the banks in con­
nection with carrying out the physical
merger. Offices were prepared in the
Chase National Bank Building fo r
W inthrop W . Aldrich, who will become
president o f the consolidated bank, and
fo r several senior officers o f the Equi­
table. Alterations were made in the
Equitable to provide fo r the transfer o f
a number o f Chase officers to 11 Broad
Street. W ith completion o f the merger,
the enlarged Chase National Bank now
has fifty-two offices in New York City
and Brooklyn and seven foreign offices
located in Europe, Latin American coun­
tries and the Orient.

C a p ita l In c re a se

The day following the formal opening
o f its newly remodeled and enlarged bank­
ing home The Northern Trust Company,

The board o f directors o f the corpora­
tion has recommended the calling o f a spe­
cial meeting o f the stockholders to be held
ou J une 24, 1930, to authorize the increase
o f the capital stock o f The Northern Trust
Company from two million dollars ($2,000,000), consisting of twenty thousand
(20.000) shares o f the par value o f one
hundred dollars ($100) each, to three
million dollars ($3,000,000), consisting o f
thirty thousand (30,000) shares o f the par
value of one hundred dollars ($100)
each, that is to say, an increase o f ten
thousand (10,000) shares.
In making the proposed increase of
capital stock, it is planned to give to the
stockholders o f record at the close of busi­
ness on June 25, 1930, the right to sub­
scribe pro rata fo r the ten thousand
(10.000) new shares o f stock at the price
of three hundred dollars ($300) per new
share, on the basis o f one new share for
each two old shares held. It is then
planned to pay annual dividends on the
increase capitalization at the rate of
eighteen dollars ($18) per share, which
is six per cent (6 % ) on the purchase
price o f the new' stock.
The business o f the corporation has been
constantly increasing in volume. In order
to provide additional space for the public
in its various departments and to provide
adequate working accommodations for its
growing organization, the bank has just
completed extensive additions and im­
provements to its building. These addi­
tions and improvements have all been paid
fo r out o f its Reserve Accounts. With
the bank’s facilities ready fo r the expand­
ing needs o f all its departments, the direc­
tors believe that it is now advisable for
the institution to have a larger capital
structure.
The present capital structure o f The
Northern Trust Company is two million
dollars capital, three million dollars sur­
plus and approximately four million dol­
lars undivided profits, a total o f nine mil­
lion dollars. When the proposed ten thou­
sand (10,000) shares o f new stock have
been subscribed and paid for, the corpo­
ration will have three million dollars o f
additional corporate funds. Of these ad­
ditional funds, one million dollars will be
added to the capital account, and two mil­
lion dollars will be added to the surplus
account, and in addition, there will be
transferred to the surplus account one mil­
lion dollars from the undivided profits ac­
count. The corporation will then have a
capital structure o f twelve million dollars,
made up o f three million dollars capital,
six million dollars surplus and approxi­
mately three million dollars undivided
profits.
N orthw estern Banker

June 1930

114
R e tu r n s F r o m F lo r id a

“Duly Addressed
and Deposited in
Post Office
■
Do you give no m ore thought to
the collection of o u t-o f-to w n item s
than the quoted language of the
law requires the notary to give to
notices of dishoner?
M ail m atter sent to us is called for
at the Post Office at frequent inter­
vals by day and night. Collections
are forwarded prom ptly to place
of paym ent or through not more
than one interm ediary.
See that your im portant collections
and troublesom e cash item s are
“ duly addressed” to this bank,
and thus secure the advantages of
our continuously operating transit
and collection service.
All item s received at par.

...T H E ...

PHILADELPHIA
N A T I O N A L

B A N K

O R G A N IZ E D 1803

PHILADELPHIA, PA.

Capital and Surplus $50,000,000

Northwestern Banker

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

June 1930

F. H. Rawson, Co-Chairman o f the
First National Bank and First Union
Trust and Savings Bank, returned to his
desk recently after spending ten weeks
in Florida.
Mr. Rawson stated that while being out
of intimate touch with business for such
a long period he would not care to ex­
press himself in detail on the outlook,
there seemed to be more optimism and
better feeling existing at the present time
than when he left for the South on Feb­
ruary 1.
Mr. Rawson found Florida conditions
slowly righting themselves and consider­
ing the numerous jolts the state has re­
ceived, beginning with the real estate de­
flation in 1925-6, followed shortly after
by the terrific hurricane and later by the
fruit fly, it has shown a fine spirit and
should gradually come hack. Real estate
conditions apparently are stabalized and
if not at the bottom are almost so. Miami
and Miami Beach have had a splendid
winter from the tourists. A t all times the
hotels have been well filled. There has
been and is still continuing a lot o f fine
residence building taking place at Miami
Beach where values now on the best ave­
nues are up to what they were before the
real estate deflation.
M o r r is o n E n la r g in g

A city is as great as its citizens make
it, and Chicago is destined beyond ques­
tion to become the world’s largest me­
tropolis. Harry C. Moir, president and
general manager o f the Morrison Hotel,
will no doubt go down in history as one
o f the outstanding men who helped to
make Chicago.
Mr. Moir has just announced the letting
o f contracts to John Griffiths and Sons
fo r the erection o f a new 21-story addi­
tion to the present Morrison Hotel. It is
to cost $3,250,000.00 and will contain
500 additional rooms. It will also con­
tain stores and banquet halls. It will be
erected on the property which the Moir
Hotel Company has controlled fo r some
years, on Madison Street, immediately east
o f and adjoining the present hotel
building.
In commenting on the project, Mr. Moir
said: ‘‘The Morrison Hotel has been en­
joying an unusually high percentage o f
occupancy, and is in a very prosperous
condition; this, and the fact that I am a
thorough believer in Chicago and its fu ­
ture, has prompted me to take part in
President Hoover’s program fo r the stim­
ulation o f business progress generally, and
the building industry in particular, by
undertaking to build the addition at this
time, rather than to delay it fo r a year
or more.”
The erection o f this new addition will
mark the passing o f another famous Chi­
cago landmark. One o f the buildings to
be removed is the Edelweiss building.

115

M is ta k e n I d e n tity

A certain young- man was recently
speeding merrily along the road when he
caught up with a party o f children on
their way to school. He asked them if
they cared to ride, and fo r an answer they
piled into his Ford until it was so com­
pletely filled that one little girl had to sit
in the driver’s lap. She was a plump
little thing and the driver cuddled her
close to keep her away from the steering
wheel. "D o you like school?” he asked
her.
“ Yes, sir,” she lisped.
“ Do you go every day?”
“ I haven’t missed a day this year,” the
little girl replied.
“ Good little g ir l!’ said the driver, kiss­
ing her soft cheek. “ Do you like your
teacher ?”
“ Yes, sir,” said the little girl, “ I ’m the
teacher!”
And the Ford nearly went into the
ditch!
P r o c r a s tin a tio n

When a worried-looking man applied
for a settlement o f a claim for fire insur­
ance, the agent asked: “ Much damage ?”
“ Not much,” the man said; “ just a
door.”
“ How much would a new door cost?”
“ About $5.”
“ When did the fire happen?”
The man hesitated a moment, and then
replied: “ About thirty years ago.”
“ Thirty years ago ?”
“ Yes.” "
“ And you’ve waited all these years to
report it ?”
“ Yes.”
“ How did that happen?”
“ W ell,” said the man, “ my wife has
been at me to do something about that
door ever since it was burned, and I
couldn’t stand it any longer.”

An

E rror

The chief engineer and the master me­
chanic had spent the evening together.
F or obvious reasons, the M. M. was a
little hesitant about going home.
“ I ’ll tell you what to do if you don’t
want to disturb your wife,” said the chief.
“ When you get in the house, undress
at the foot o f the stairs, fold your clothes
neatly, then creep quietly up the steps to
your own room.”
They met the next morning at the plant.
“ How did you get on,” asked the chief.
“ Rotten,” replied the M. M. “ I did
just as you told me. I undressed at the
foot o f the stairs. I folded my clothes
neatly. I crept quietly up the steps. But
when I reached the top— it was the ele­
vated station!” — The Fire Box.
R e a l D e v o t io n

An old lady o f seventy, returning after
sixty years’ absence to her native Scottish
village, called on a friend o f her youth,
now ninety.
Said she: “ Though I ’ve been lang away,
an’ I have na written ye, I ’ve never
forgotten ye. I ’ve looked regularly to
see your death in the papers.”
W h y A n t iq u e s S oa r

Dealer: “ It’s a genuine antique, sir.”
Customer: “ But you are asking a fear­
ful price fo r it.”
Dealer: “ Well, sir, look how wages and
the cost o f materials have gone u p !”

S n o re s in O p e r a

“ Tell me, does your husband snore?”
“ Oh, yes, indeed, so delightfully.”
“ W hat?”
“ Yes, really he is so musical, you know,
his voice is baritone. He only snores
operatic bits, mostly Aida.”
“ This is the finest car that I ever
owned.”
“ But to me it sounds like a boiler fa c­
tory in full blast.”
“ That’s just the point. I can’t hear my
wife in the back seat.”
“ How’d you get that smudge on your
face ?”
“ Well, honey, the car broke down and
I had to fix it.”
“ Since when do you grease your car
with red grease?”
A live-wire salesman rushed up to the
home o f a doctor in a small village about
3 a. m. and asked him to come at once
to a distant town.
The doctor cranked his flivver and they
drove furiously to their destination.
Upon their arrival the salesman asked,
“ How much is your fee, doctor?”
“ Three dollars,” said the physician in
surprise.
“ Here you are,” said the salesman,
handing over the money; “ the blamed
garage keeper wanted $15 to drive me
over when I missed my train.”
A mother and daughter were listening
to a band in the park.
The mother asked, “ What’s that they’re
playing, M ary? It sounds to me like
Wagner.”
“ No, I don’t think it’s Wagner,” said
Mary. “ I think it’s Chopping. I ’ll go
to see.”
On her return from the bandstand she
said, “ We were both o f us wrong. It
says, “ Refrain from Spitting.”

A p p e a r a n c e s M is le a d in g

A Chicago actress came into a lawyer’s
office and said to him : “ I want a divorce.”
“ Certainly,” said the lawyer. “ For a
nominal fee I will institute proceedings,
and should experience little difficulty in
procuring it fo r you.”
“ What do you call a ‘nominal fee’ ?”
asked the actress.
“ Five hundred dollars,” said the lawyer.
“ Nothing doing,” retorted the lady. “ I
can have him shot fo r ten dollars.”

“ Were you a slave, Uncle T arr?”
“ Nussah, Cuhnel; but ’bleeged to yo’
for de ’terrygation, dess de same, sail. I
isn’t old enough.
Ise been mar’d f o ’
times; dat’ s what makes me look all dis­
integrated dis-uh-way, sah.”

Our hope fo r eternal life in the here­
after does not spring from a longing fo r
a spiritual existence, but grows out o f
our love fo r life upon this earth, which
we have tried and found good.— Robert
J. Shores.

Sub-Editor: “ I see here that a naval
officer was badly cut in opening a wine
bottle. What kind o f heading shall I put
to it? ”
C h ief: “ Oh, just sa y : ‘ Serious accident
to British man-of-war in attempting to
get into port.’ ”

He is not only idle who does nothing,
but he is idle who might be better em­
ployed.— Socrates.

The highest and most lofty trees have
the most reason to dread the thunder.—
Charles Rollin.

Lost : A precious moment, set with
golden opportunities. No reward offered
fo r it cannot be recovered.— Exchange.


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

Northwestern Banker

June 1930

116

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e r t i s e r s

F ir s t N a tio n a l B a n k , S io u x C ity . . . 98
A
A . B. A . C h eq u es ........................................... 41 F ir s t W is c o n s in N a tio n a l B a n k . . . . 38
A m e r ic a n C o m m e rc ia l & Sav. B a n k . 3 7 F ish e r C o m p a n y ............................................ 75
F o r e m a n -S ta te C o rp o ra io n ....................
4
It
F re n c h & H e c h t, In c .................................... 90
B a b c o c k , R u sh to n & C o............................. 69
Gr
B a lla r d -H a s s e t t C o ....................................... 48
B a n k e r s T r u s t Co., D es M o i n e s .......... 81 G e n e ra l M o to r s A c c e p ta n c e C o r p .. . . 56
B a n k e r s T r u s t Co., N ew Y o r k C i t y .. 41 G la sp e ll, V ie th & D u n can ...................... 63
B a n k e r s ’ W a n t s ...........................................104 G u a r a n ty L ife In su ra n c e C o ................. 89
Geo. M. B e c h te l & C o .................................. 67
II
A . G. B e c k e r & C o........................................... 33
H a ls e y , S tu a rt & C o ...................................... 46
C a rle to n D. B eh C o ..................................... 29
H a n c h e tt B ond C o........................................... 52
B e ll T e le p h o n e S e c u ritie s C o ................. 36
W . D. H a n n a C o.............................................. 35
B r o k a w & C o m p a n y .................................... 62
H o m e S a v in g s B a n k ................................ 84
H . M. B y lle s b y & C o .................................... 49
H o te l G o v ern o r C lin to n ........................... 72
H o te l P re s id e n t ............................................. 106
C
C edar R a p id s N a tio n a l B a n k ..............117
C e n tra l H a n o v e r B a n k & T r u s t Co. . .
8
C e n tra l L ife A ssu r a n c e S o c ie ty . . . . 77
C e n tra l N a tio n a l B a n k & T r u s t C o .. 83
C e n tra l T r u s t Co. o f I l l i n o i s .................
7
P. W . C h a p m a n & C o................
54
C h ase N a tio n a l B a n k ...............................112
C h a th a m P h e n ix N a tio n a l B a n k . . . . 40
C itize n s T r u s t & S a v in g s B a n k .......... 88
C ity N a tio n a l B a n k , C lin to n ............ 97
C o m m e rc ia l N a tio n a l B a n k .................... 96
C o n so lid a te d N a tio n a l B a n k ............... 88
C o n tin e n ta l Illin o is C o...............................
9

I)
D e s M o in e s L ife & A n n u i t y ....................
D r o v e r s N a tio n a l B a n k ...........................
E . R a y m o n d D u tr o & C o..........................

73
12
51

E
E p p le y H o te ls

.................................................. 100
F

F a r m e r s M u tu a l H a il In s. A s s ’n . . . .
F e d e ra l S u rety C o .........................................
F ir s t Io w a S ta te T r u s t & Sav. B a n k
F ir s t N a tio n a l B a n k , C h ic a g o ..........
F ir s t N a tio n a l B a n k , D a v e n p o r t . . .
F ir s t N a tio n a l B a n k , M a so n C ity . .
F irst N a tio n a l B a n k , M in n e a p o lis . .

74
68
98
10
95
94
11

I
In te r n a tio n a l H a r v e s te r C o..................... 91
In v e s to r s S y n d ic a te .................................. 66
Io w a B ond C o rp o ra tio n ........................... 69
lo w a -D e s M o in e s N a tio n a l B a n k . . . .118
Io w a L ith o g r a p h in g C o .............................. 107

N
N a tio n a l B a n k o f the R e p u b lic ........... 110
N a tio n a l C ity C o............................................. 61
N orth e rn T r u s t C o.......................................... 108
N o r th w e s t B a n c o rp o ra tio n .................... 13
N o r th w e s t D a v e n p o r t S a v in g s B a n k 86
N o r th w e s te r n N a tio n a l L ife I n s ......... 76

O
G. L. O h rstro m & C o .................................... 64
O m ah a N a tio n a l B a n k .............................. 92
P
F r a n k P. P a r ish & C o................................. 47
P e o p les T r u s t & Sav. B a n k .................. 84
P h ila. N a tio n a l B a n k ................................ 114
P io n e e r N a tio n a l B a n k ........................... 99
H a r r y H . P o lk & C o ...................................... 50
P rie s te r, Q u ail & C u n d y ........................... 55
P rin ce & W h i t l e y ............................................ 48
P ro v id e n t S ta te S e c u ritie s C o ................ 59

K

J
J a c k le y -W ie d m a n & C o...............................

M u rh le, R e a m & M c C la in ....................... 102
T h os. D. M u rp h y C o ........................................I l l

60

L

R e g is t e r L ife In s. C o .................................... 85
R o y a l U n ion L ife I n s .................................... 70

S
G e o rg e L a M o n te & Son ........................... 42
L a m s o n B r o s .................................................... 50
S e c u rity F ir e In s. C o .................................... 78
L a n s fo r d & C o.................................................. 52
S e c u rity N a tio n a l B a n k ........................... 93
L ee, H ig g in s o n & C o......................................
2
S e le cte d S h a res C o rp .................................... 6a
L iv e S to c k N a tio n a l B a n k , O m a h a . . .1 0 7
V ic to r J. S illim a n C o.................................... 58
L iv e S tock N a tio n a l B a n k , S iou x
C ity ......................................................................103 S m ith , B u rris & C o ........................................ 53
S tock Y a r d s N a tio n a l B a n k ....................
6
M
T
W . B. M cM illa n & C o.................................... 63
M c M u r ra y H ill & C o...................................... 57 Todd C o m p a n y ................................................. 43
M a so n C ity B r ic k & T i l e ............................ 102
V
M a tth e w s & L e w is C o................................... 44
M e rc h a n ts N a tio n a l B a n k ......................
5 V a lle y N a tio n a l B a n k ................................ 86
M e tc a lf, C o w g ill & C o ................................. 31
M id la n d B a n k L t d ............................................ 106
M id la n d N a tio n a l B a n k & T r u s t C o .. .109
M in n e s o ta E n v e lo p e C o................................ 110
M o rr iso n H o te l ................................................104

W
W a lla c e -H o m e s t e a d C o ................................ 102
W h it e P h illip s Co., In c ............................... 39
W in n e s h ie k C o u n ty S ta te B a n k .......... 87

T H E N O R T H W E S T E R N B A N K E R A N D T H E T E R R IT O R Y IT C O V E R S
Published by DePuy Publishing Company
555 Seventh Street, Des Moines
C L IF F O R D D E P U Y
Publisher

R.

W . M OORHEAD
E d itor

G E R A L D A. S N ID E R
A ssocia te Publisher

L. D. V A N D O R A N
A sso cia te E d itor

F R A N K P. S Y M S
V ic e President

W M . H. M A A S
V ic e P resident

C hicago O ffice: W m . H. M aas, 1221 F irst N ational Bank B ld g., Phone Central 3591
N ew Y ork O ffice: Frank P. Sym s, 25 W e st 45th Street, Phone B ryant 4867
M ilw aukee O ffice: 68 E . W isco n sin A ve., Phone B roadw ay 4916
M in n eap olis O ffice: Frank S. L ew is, 840 L um ber E xch an ge, Phone M ain 3865
O fficial P u b lica tion of
T H E S O U T H D A K O T A B A N K E R S A S S O C IA T IO N
T H E IO W A FA RM M O R T G A G E A S S O C IA T IO N
T H E IO W A IN V E S T M E N T B A N K E R S A S S O C IA T IO N

N orthw estern B anker

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

June 1930

JS

M EM BER
FEDERAL RESERVE


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

^Ve c t V

The selection of a correspondent bank
should receive the same careful considera­
tion as the selection of a member of your
personnel, for it is truly representative of
your own institution.
Your business will receive the same at­
tention by tbe Cedar Rapids National as a
member of your own oreanziation would

Glenn M. Averill, Pres.
E. M. Scott, Vice Pres.
O. C. K lining, V. P.
and Cashier
Van Vechten Shaffer,
Vice Pres.
Geo. F. Miller, V. P.
and Trust Officer
Marvin It. Selden,
Vice Pres.
Assistant Cashiers
Peter Bailey
Bertha M. Wolf
Geo. W. Swab
Maud W. Carpenter
It. D. Brown
O. A. Kearney

CedarTorpids, Iovtet

\
ITH over 36 m illion s o f
' * resources, an able and expe­
rienced local management, excep­
tionally complete equipment and
a record o f over 50 years o f safety
and satisfactory service, Iowa’s
largest Bank stands as one o f the
foremost financial institutions in
the Middle West.
Its further significance, as a unit
in a group having resources o f ap­
proximately half a billion dollars,

makes th is Bank an im p ortan t
factor in all that concerns financial
enterprise in th e vig o ro u s and
g r o w in g territory o f th e great
midland Northw est.
C o rre sp o n d e n t activ itie s are
characterized by the same broad
conception o f service and loyalty
that has been back o f the Bank’s
steady progress. W o u ld not such
a c o r r e sp o n d e n t in th e I o w a
territory prove h e lp fu l to you?

Iowa -Des Moines National
Bank ¿tTrustCCompany


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

A F F IL IA T E D W ITH

N O R T H W E S T BAN C O R P O R A T IO N
Combined Resources Over $483,000,000

m m m m m m rn