Full text of The Northwestern Banker : June 1965, 71st Year, No. 935

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JACKSON LAKE— SITE OF
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Federal Reserve Bank of St. Louis

JU N E
1965

i.
III ¡lililí

W VO M ING CONVENTION

(Page 81 >; M ONTANA CONVENTION (Page 77)

Investment counseling service. . . from MNB
In a recent continuing survey by Northwestern
Banker, country bankers were asked which corre
spondent services were most important to them.
“ Investment A dvice” ranked third on the list. At
M N B our investment staff keeps current daily on
econom ic and social trends, and developments af
fecting agriculture, industry and commerce. Invest
ment advice is no doubt one big reason why half of
the banks in Iowa are M N B correspondents.

So many ways we can help you . . .

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Federal Reserve Bank of St. Louis

Me/ickmfa HtihoYid
C ED A R RAPID S

THE

F U L L S E R V IC E

BANK

FOR TH E

MEMBER F.O.I.C.

BANKS

O F IO W A

s ? s s

TRUST NORTHERN
to give wings to your checks
Northern T ru s t is noted fo r
its speedy handling of out-ofto w n c h e c k s . O ne re a s o n :
direct pick-up and de live ry...
day and n ig h t . . . f r o m a ir
ports, railroad stations and
m otor term inals. That means
a c c e s s to n e a rly 1,000 d o
m e s tic a n d in t e r n a t io n a l
flig h ts, 150 mail trains, and
countless m otor trucks every
day.
But fast pick-up and deliv
ery is only part of the story.
Northern T ru st employs the
very la te s t c h e c k -h a n d lin g
e quipm en tto speed work, cut
down your custom er's credit

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Federal Reserve Bank of St. Louis

exposure, and reduce “ flo a t.”
Late afternoon and evening
items are handled by a night
s ta ff. W e e k-e n d ite m s g e t
special attention. Check co l
lection schedules are set up
to provide rapid availability
of funds.
A nd here's another reason
to T ru st Northern. Both sides

NORTHERN
TRUST
COMPANY

BANK
NORTHWEST CORNER LASALLE
C h ica g o 6 0 6 9 0

•

Fin an cial 6 - 5 5 0 0

4 MONROE
• M em b e r F.D .I.C .

o f o u t-o f-to w n c h e c k s are
m ic ro film e d fo r m a xim u m
protection. Should an item
d is a p p e a r, h o u rs o r even
days can be saved. Often this
means keeping the goodw ill
of your depositor.
G iv in g w i n g s to your
checks is one of the many
a ttra c tio n s o f b e c o m in g a
Northern T ru st correspond
e n t b a n k . A n o t h e r is p e r
sonal service. J u s ta s k to see
a N orthernTrust officer; if you
are not already acquainted in
the Bank, direct your request
to Mr. N. Hall Layman, Vice
President.

Sure. You can let securities handling
“straitjacket” part of your staff.
But why in the world should you?
Chase Manhattan's Correspondent Safekeeping De
partm ent can handle all the hour-consum ing paper
w ork connected w ith your bank's securities.
Purpose: to save you time, to save you money, to
save you w orry. And, of course, to free your staff for
more productive pursuits. (Like the acquisition of
new business.)
W e detach and collect coupons fo r you. Receive
and credit dividends. Check fo r called bonds. Collect
called and m aturing obligations. N o tify you of ex
change privileges, and process exchanges. Execute

purchase and sale orders as you direct. Act as th ird party holder for securities pledged against public deposits. Provide periodic statements o f your holdings,
Do everything. Efficiently, econom ically, profession
ally — w ith m eticulous attention to every detail. No
gaps, no oversights.
W e 'll also counsel you, if you wish, on your bank's
investment p o rtfo lio and program. The com bination
o f p o rtfo lio advisory and securities safekeeping services is double evidence that your bank has, truly, a
friend at Chase Manhattan.

THE CHASE MANHATTAN BANK
1

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Chase Manhattan Plaza, New York, N. Y. 10015

M em ber Federal Deposit Insurance C orporation

"^|

71st Year

“ Ringing the Bell”

No. 935

“ I have before me your May issue of the
N o r t h w e s t e r n B a n k e r , which does an ex

cellent job by the attractive front cover
and interesting coverage in the article
headed ‘Ringing the Bell for Full Service
Banking.’ As you know, this activity is
very close to me, and I want to both con
gratulate you and thank you for the fine
support you have given us.
Tilden Cummings, President,
Continental Illinois National
Bank and Trust Company,
Chicago.
Editor’s Note: Mr. Cummings is trustee
for the Foundation for Commercial Banks
representing the 7th Federal Reserve Dis
trict. He is also chairman o f the board of
trustees.

EDITORIALS
22

A cross the Desk from the Publisher

FEATURE ARTICLES
5
19
27
28
30
31
32
33
34
40

D ear E ditor
F rontispage—
The State o f Y ou r Statement
The Bank D irector and His R esponsibilities— W illiam P. Roman
Small Banks Need Better Auditing- Help— K . A . Randall
U rges N ew Idea fo r Bankers M aking Cattle Feeder Loans—
F ran cis L. Y ork
W e Help Customers Keep T A B S on Their M oney—
P reston V. K ors
Bankers Y ou K now — N eil F . R oberts
H ow F oreign Trade A ffects M idwest Banks— V ictor C. Studley
M arquette’s G ary W ollan Completes Swiss Mission

“ Keep Track of Friends”
“ I have always enjoyed your fine publi
cation and would appreciate receiving the
N o r t h w e s t e r n B a n k e r , so I can keep track
o f my good friends. We will be moving into
our new home shortly at 425 Alcala Lane,
Santa Barbara, California.”
Tom Barnes, Retired Assist
ant Vice President, Harris
Trust and Savings Bank,
Chicago.

“ Appreciate Good W o rk ”
We appreciate all of the good work you
did for us at the recent annual convention,
and I ’m looking forward to reading your
article in the June N o r t h w e s t e r n B a n k e r .
It was nice meeting your new associate ed
itor, Dave Lendt, and I hope we will have
a long future association.”
William J. Daner, Secretary,
North Dakota Bankers A s
sociation, Bismarck, North
Dakota.

STATE BANKING NEWS
M innesota Convention
P rogram
Tw in City News
Y ou W ill See Them at the
M innesota Convention
List General Committee
F or M innesota Convention
South Dakota
Convention R eport
and Pictures
South Dakota News
N orth Dakota
Convention R eport
and Pictures
N orth D akota News
M ontana Convention
P rogram
Y ou W ill See Them at the
M ontana Convention

81
51
52

82
85

86
91

67
70

96
100
104
107
110

118

73
76

W yom in g Convention
P rogram
They W ill Attend
W yom in g M eeting
W yom in g News
Colorado Convention
R eport and Pictures
Colorado News
Nebraska Convention
R eport and Pictures
Omaha News
N ebraska News
Lincoln News
Iow a News
Iow a Group
R eport and Pictures
Des M oines Nws

OTHER FEATURES
117
120
122

Conventions
Index o f A dvertisers
In the D irectors’ Room

“ February, 1 92 1, Issue”

“ Enclosed is a photostat of the cover of
my file copy of the February, 1921, issue
of the N o r t h w e s t e r n B a n k e r .
“ The article on “ Why New Buildings Pro
mote Growth in Deposits” was of particular
interest to me. You hear the same ideas ad
vanced today. I hope banks are not in the
same shape five years from now as Iowa
bankers were in five years after this article
appeared ! ”
B. W. Youell, Jr., President,
Manson State Bank, Manson,
Iowa.

NO RTHW ESTERN

BANKER

306 15th S treet, Des Moines, Iowa 50309, Telephone (A rea Code 515) 244-8163
Chairman
Clifford De Puy

Publisher
Malcolm K. Freeland

Associate Editor
Larry W . Nothwehr
Advertising Assistant
Mildred Savich

Circulation Department
Lena Sutphin

Field Representative
AI Kerbel

Field Representative
Joe M. Smith

Editor
Ben J. H aller, Jr.
Associate Editor
David L. Lendt
Auditor
Bertha Soderquist
Field Representative
Paul Masters

Frank P. Syms, Vice President, 550 Fifth Avenue, New York 36, JUdson 2-7126

No. 935. Northwestern Banker is published monthly by the Northwestern Banker Company, 306 Fifteenth Street, Des Moines, Iowa 50309. Subscription 50c
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Federal Reserve Bank of St. Louis

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It’s easy to lend
to them all
(when you know the right people)

Spring is just one of the times a
farmer’s fancy turns to thoughts of
money.
Because farming today requires
large amounts of capital. In many
cases, more than the home-town
bank is able to provide.
So during the peak periods of agri
cultural borrowing, many of our cor
respondent banks turn to us for
knowledgeable assistance. Our agri
cultural specialists are no "city
boys." We were one of the first major

banks to have a farmer’s banker on
its staff.
We help in many ways. Some
times, we participate with a corre
spondent in a loan. Often, we help by
purchasing a bank’s paper or notes.
That’s why so many of our 3,100
correspondent banks have found it’s
really easy to make agricultural
loans, when they know the right
people.
And they do.
The people at

C O N T IN E N T A L B A N K
Continental Illinois National Bank and Trust Company of Chicago
© C.I.N.B. 1965

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Federal Reserve Bank of St. Louis

231 South La Salle Street, Chicago, Illinois 60690 • Member Federal Deposit Insurance Corporation

N o r th w e s t e r n Banker, June, 1965

P l a n b U d u 'e s t A y C o n fe r e n c e
OW can a country bank meet the
problem of a declining rural econ
H
omy?
This and other questions will be ex
plored at a unique seminar to be
staged June 18 and 19 in Sioux City
by The Independent Bankers Associa
tion. Titled “Midwest Agricultural
Conference,” the program is aimed at
helping independent bankers meet the
problems resulting from a declining
rural economy.
Speakers representing such fields as
economics, sociology, religion, indus
try and banking will provide a broad
perspective to the problem of the pop
ulation decline on the farm and in the
rural communities. These presenta
tions are expected to provoke some
lively discussions among the bankers
present.
The pilot program this month will
be limited to about 200 participants
from IBA member banks in the 12
north central states. If support for
the initial program seems to merit
repetition, the project will be broad
ened at a later time.
Invitations are being sent to north
central states independent bankers.
A registration fee of $25 per person
will cover luncheon meals Friday,

N o FRASER
r th w e s t e r n Banker, June, J965
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J. C H R Y S T A L

B. H O U S E

June 18, and Saturday June 19, and
dinner Friday evening. Headquarters
will be the Sheraton-Warrior Motor
Inn in Sioux City.
Because of the enrollment limita
tion, those who plan to attend are
urged to submit their application im
mediately to assure participation.
Speakers will include:
The Rev. E. W. Mueller, director of
the Town and Country Department,
National Lutheran Council, who will
speak on “Every Man Is Worthy of
His Hire.”
Bill House, Cedar Vale, Kan., ranch
er and immediate past president of the
American Hereford Association and
second vice president of the American
National Cattlemen’s Association.

George Donohue, department of so- ,
ciology, University of Minnesota.
V. E. Rossiter, Sr., president of the
Bank of Hartington, Neb., and former
chairman of the IBA Agriculture Com
mittee, who has written and spoken ^
extensively on the problem of low
farm income.
Walter Bowers, former employee,
U. S. Department of Treasury and >A
Commerce; farmer, educator, econo
mist.
John Chrystal, Iowa superintendent
of banks.

Invite Continental “ Grads”
There’s no ivy clinging to the walls
of Continental Illinois National Bank
and Trust Company, but its alumni
are returning for a homecoming re
union during the American Bankers
Association convention in Chicago this
fall.
Continental’s president, Tilden Cum
mings, is sending letters of invitation
to “graduates,” former staff members
who are now financial executives with
other banks and corporations, and who
would normally attend the ABA con
vention in Chicago, October 3-6.

New International Officer
J.
Louis Munoz, Jr., has been elected
vice president of Security First Na
tional Bank’s head office international
banking department and will continue £>
as the bank’s representative to Mex
ico, and Central and South American
countries. Headquarters for the bank
is in Los Angeles.

Personal Loan Record
First National City Bank, New
York, recently made its 12 millionth ,
personal loan, just 37 years and 16 *
days from the date of its pioneering
move into the personal credit field.
Since Citibank made its first per
sonal loan on May 3, 1928, it has ex- *
tended personal credit for more than
$7 billion. Citibank is now making
more than a half billion dollars in per
sonal loans every year.

Opens New York Office
The First Wisconsin National Bank,
Milwaukee, has opened an office in
New York City at 26 Broadway to
handle expanded operations of its in
ternational banking division and mu
nicipal bond department.
The office will supplement the open- -<*>
ing of a representative office in Lon
don and the establishment of a foreign
factoring operation as a new addition
to the Milwaukee international setup.
Charles Mittenberg, formerly an officer
of the Bank of America, will represent
the international division.

The First National Bank. Ironton, Ohio

"People here were happy because

most of our building budget was spent locally,"
says Mr. Walton. “ Your consultant assured us that most o f our
building dollars would be shared by local sub-contractors, suppliers,
and craftsmen. That is exactly what happened. Moreover, our
project reflects Bank Building’s experience and talent in every detail.”
If you want to keep local people happy and still benefit from the
best in financial design, call in one o f our Consultants first.
MID-CONTINENT DIVISION
To m C a h ill
P ro je c t C o n s u lta n t

N orm an W alto n
P re sid e n t

Write Jack M iner, M gr., 1130 Hampton A ve., St. Louis, Mo. 63139, or phone collect. Mission 7 -3 8 0 0 .

OF AMERI CA
H o m e office: 1 1 3 0 H a m p to n A v e ., S t. L o u is , M is s o u r i

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Federal Reserve Bank of St. Louis

•

O f f i c e s in A t l a n t a

•

C h ic a g o

•

D a lla s

•

N ew Y o rk

•

S a n F ra n c is c o

A n a ly z e E x a m i n e e s S a l a r ie s
19 of 51 banking supervisors
ONLY
believe that their departments
had adequate operating budgets in
1964, President Edwin P. Neilan of the
State Bank Division of The American
Bankers Association announced re
cently.
Thirty-one supervisors reported an
in a d eq u a te number of examiners,
while 36 said that salary levels of ex
aminers were insufficient to attract
and retain competent personnel.
In 1964 the maximum annual sal
aries paid examiners in the 51 banking
departments ranged from $6,600 to
$18,140. States at the bottom of the
range would have to triple present
maximums to make them competitive
with the Federal examiner pay checks.
Starting salaries of state assistant ex
aminers were reported from $3,780 to
$7,800, with an annual median average
of $5,230.

Supervisors to Hear Romney
Michigan Governor George Romney,
an early favorite to capture the Repub
lican presidential nomination in 1968,
will be the featured speaker at the
64th Annual Convention of the Na
tional Association of Supervisors of
State Banks.

The 1965 meeting of the association
will be held at the Pick-Fort Shelby
Hotel in Detroit, September 28 through
October 1. An attendance of 600 state
bank supervisors, bankers and govern
ment officials is expected.

Announce B of A Executive
The election of D. C. Sutherland as
a Bank of America executive vice
president has been announced by Pres
ident R. A. Peterson.
Mr. Sutherland, a member of the
bank’s managing
committee, heads
the business rela
tionships depart
ment. He has
held the title of
senior vice presid e n t f o r five
years.
Because of his
past statewide re
sp on sib ilities in
D. C. SU T H E R L A N D
the lending field,
Mr. Sutherland’s election by the board
of directors was seen as a move in
anticipation of the impending retire
ment ofExecutive Vice
President
Lloyd Mazzera,chief of the bank’s
loan activities and chairman of the

general finance committee. Mr. Maz
zera will soon reach the mandatory
retirement age of 65.

Elect AIB President

«
Vera Waldo, vice president of the
F irst N ation a l
Bank of Nevada
in R e n o , w a s
slated to be elect M
ed new president
of the American
Institute of Bank
ing at the group’s
annual co n v e n
tion being held in
New Orleans as
this
issue of the
V. W A L D O
N orthweste r n

went to press. A complete
report on the convention will be pub
lished in July.
B anker

Record AIB Membership
Membership in the American Insti
tute of Banking (educational section
of The American Bankers Association)
reached 200,092 last month.

Honor Harris President
A. Newell Rumpf, president, Harris
Trust and Savings Bank, Chicago, was
elected to the board of directors of The
Economic Club of Chicago.

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th w e s t e r n Banker, June, 7965
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Federal Reserve Bank of St. Louis

This is the Fanners State Bank of Lisbon,
Lisbon, North Dakota

This is
their “office”
in
New York

M r. G . H .W eber, President
Farmers State Bank o f Lisbon
Lisbon, North Dakota

Like many banks of all sizes, the Farmers State Bank of

experience and know-how of our staff are always ready to

Lisbon, Lisbon, North Dakota, has a New York “ office”

help the Farmers State Bank of Lisbon serve its customers.

through its correspondent relationship with First National

How can your bank get these same benefits? Write or call

City. Not only in New York but in 39 countries on 5 conti

our Correspondent Bank Department (Area Code 212

nents where First National City branches are located, the

559-4832) and we will be pleased to visit you.

F IR S T N A T IO N A L C ITY B A N K
Member Federal Deposit Insurance Corporation

Uptown Headquarters: 399 Park Avenue

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Federal Reserve Bank of St. Louis

Downtown Headquarters: 55 Wall Street

N o r th w e s t e r n Banker, June, 19 6S

T o Is s ilo C a p it a l N o te s
board of directors of First Na
T HE
tional City Bank, New York, has
recommended the issuance of an esti
mated $267,000,000 of 25-year converti
ble capital notes.
Issuance of the notes requires ap
proval by the Comptroller of the Cur
rency and by holders of two-thirds of
the shares of the bank’s capital stock
at a special meeting to be held on
June 10. At that same meeting, share
holders will be asked to approve issu
ance of 5,000,000 new shares usable for
the eventual conversion of the notes

and for other purposes.
The proposed notes will be subor
dinate to deposits and certain other
obligations. They will not be callable
for five years, but will be convertible
into capital stock at any time at the
option of the holder. The interest rate,
offering price and conversion price
will be determined after the share
holders’ meeting in the light of market
conditions at that time, the bank said.
If the proposal is approved, share
holders will receive subscription war
rants entitling them to purchase $100

of notes for every 10 shares held, a
ratio at which it is estimated the issue
would aggregate about $267,000,000.
Shareholders who do not care to pur
chase the notes may sell their war
rants.

Retires in Tulsa
William W. Michaels, senior vice
president of the First National Bank
and Trust Company of Tulsa, has re
tired but will remain as a consultant
to the bank, it was announced by F.
G. McClintock, president.
Mr. Michaels, who joined First Na
tional in 1942, was head of First Na
tional’s national accounts department.

Purchase TV Bank Firm
TV Bank Corporation of Indianapo
lis has been purchased by The Meilink
Steel Safe Company of Toledo, and is
now known as TV Bank Equipment
Corporation. The entire operation in
cluding personnel has been moved to
Toledo, Ohio.
Stanley Akers, president of Meilink, ^
announced that this new subsidiary
will continue to manufacture, sell, in
stall and service the remote electronic
banking facilities known as TV Banks. *

Heads Arizona Bank

Where in the world is
RENO ODLIN ?
June 10-11

Alaska Convention — Anchorage

June 14-16

Minnesota Convention — St. Paul

June 18-19

M ichigan Convention — Mackinac Island

June 20-22

W ashington Convention — Tacoma

June 24

S tonier Graduate School
of B a n k in g — New Brunswick, N.J.

June 25-27

Maine Convention — Portsmouth, N.H.

Reno’s out of town a lot lately, speaking on behalf of the in
dustry as president of the American Bankers Association. But
Dutton Hayward and the remaining 369 staff members are
working harder than ever to handle all your correspondent
banking needs.

Robert D. Williams, executive vice
president, First National Bank of Arizona, succeeded James Byers as pres
ident on June 1,
a c c o r d in g to an
a n n o u n c e m e n t ■w
Y
made in Phoenix.
Board Chairman
Sherman Hazeltine made the an
nouncement, stat- 41
ing that Mr. Byers
has re sig n e d in
order to accept
the
newly created A
R. D. W IL L IA M S
office of executive
vice president-senior bank relations
officer of Western Bancorporation. He
will assume his duties in Los Angeles
on June 24.
^
Mr. Williams, with more than 30
years’ banking experience, has been
in charge of First National Bank’s
branch office administration with re- u
sponsibility for the operation and ad
ministration.

FDIC Appointment

PU G ET S O U N D N A T IO N A L B A N K
T a c o m a —W e s te r n W a s h in g to n ’s m ost p r o g r e s s iv e hank
YEARS Of SERVICE

Reno Odlin, Chairman
Dutton Hayward, Vice President and Correspondent Director

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Federal Reserve Bank of St. Louis

Chairman K. A. Randall of the Fed
eral Deposit Insurance Corporation
has announced the promotion of John
L. Flannery as assistant chief of the
division of examinations, and his as- ^
signment on detail as administrative
assistant to the chairman.

1
S

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N o r th w e s t e r n Banker, June, 196 5

ËHan T r u s t O f f ic e r s S c h o o l
HE anticipated inauguration in
September of a full-time two-year
T
graduate program especially tailored to
the needs of prospective trust officers
has just been announced by Dr. Willis
J. Winn, Dean of the Wharton School
of Finance and Commerce of the Uni
versity of Pennsylvania. Participating
students will be candidates for the
Master of Business Administration de
gree. It is believed that the project
will be the first in academic history
emphasizing the professional aspects
of trust work and leading to a gradu
ate degree. In addition to courses in

the Wharton School, trust officer stu
dents will be admitted to pertinent
courses offered by the University of
Pennsylvania Law School.
Admission requirements for the pro
gram will be the same as those for
every Wharton graduate entrant. The
basic format will follow the general
m an agem en t program which the
Wharton Graduate Division requires
of all MBA candidates. Apart from
this, however, the course of study will
permit a great deal of flexibility, and
Dr. Winn states that he believes this
will be universally recognized as high

BattA&tA A ffi/m daM Oa/i P/an
Bankers active with our Bankers Participation
Plan are not simply automated numbers. T o
us, each Banker is an important and distinct
person. Each one, we realize, is seeking def
inite, worthwhile profit goals.
Consequently, the constant thinking of our
field experienced management is concentrated
upon helpful cooperation, in order to make our
Bankers Participation Plan profitable and re
warding to affiliating bankers.

If our type of thinking appeals to
you, then write us for details about
this popular, time-tested plan.
Inquiries handled confidentially
and complete details will be sup
plied.

NATIONAL RESERVE LIFE INSURANCE COMPANY
Topeka, Kansas • Sioux Falls, S. Dak.

Digitized for
N oFRASER
r th w e s t e r n Banker, June, Î9 6 5
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

H. O. CHAPMAN, JR.
President

ly desirable in view of the versatility
of a trust officer.
The program was devised by Dr.
Winn, who is Vice-Provost of the Uni
versity as well as Dean of the Whar
ton School, by Dr. Donald F. Blankertz, Wharton Vice-Dean and Director
of the Graduate Division, and by
Charles B. McCaffrey, Wharton Lec
turer on Insurance. Preliminary plans
were initiated shortly after the death
in 1962 of Dr. Julius Grodinsky who
was Wharton Professor of Finance
and who had taught there since his
graduation from the University in
1920.
Efforts to determine upon a fitting
tribute to Dr. Grodinsky led to seek
ing suggestions from those who knew
him best. Among these is William H.
Shupert, president of the investment
counseling firm of Studley, Shupert &
Company, Inc., of Philadelphia. Dr.
Grodinsky had served as economic
consultant to the firm which principal
ly is engaged in providing trust invest
ment advisory services to community
banks through the medium of the
Studley, Shupert Trust Investment
Council.
Mr. Shupert recalled that Dr. Grod
insky had on several occasions re
marked about the lack of graduate
education for young men and women
interested in trust careers, and had
indicated a belief that the banking and
academic worlds ultimately would be
come aware of its desirability. This is
credited with giving birth to the gen
eral outlines of the program which
Dr. Winn and his colleagues have de
veloped.
With the Wharton program for pros
pective trust officers a virtual reality,
a number of Dr. Grodinsky’s friends
are now exploring the possibility of
providing a memorial to him through
financial aid for one or more partici
pating students.
Dr. Winn said that a final decision to
inaugurate the program this Septem
ber will await applications and that
a minimum of 15 qualified applicants
will be necessary. It is hoped that
trustmen generally will encourage
men and women to avail themselves
of this unique opportunity. Those in
terested in admission to the program
should direct inquiries to: Director
of Admissions, Wharton Graduate Di
vision, Dietrich Hall, University of
Pennsylvania, Philadelphia, Pa. 19104.

New Manufacturers Director
William F. LaPorte, chairman and
president of American Home Products
Corporation, has been elected a direc
tor of Manufacturers Hanover Trust
Company.

Chicago:
No. 1 in new plants
{another good reason for a hanking connection with the Harris)
Business invested about $10 bil
lio n in p la n t, e q u ip m e n t, and
supplies in Chicago during the
d e c a d e e n d in g in 1963 — m ore
than in any other U.S. m etro
politan area.
C h ica g o ’ s m etrop olita n area
has added 4,000 new factories
since World War II. I t ’s now in
an architectural boom that has
attracted international attention
a n d p r o d u c e d b u ild in g s lik e
M arina Tow ers and a planned
100-story skyscraper.
G ood reasons for a banking
connection in Chicago, the com

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

mercial, industrial, financial, and
cultural heart o f the nation.
Let the Harris be your cor
re s p o n d e n t in th is g rea t c ity .
W e ’ re a b a n k e r ’ s b a n k . W e’ ll
make available our wide experi
ence and resources to y o u — in
ternational banking, overloans,
bonds, portfolio counseling— and
m any other services.
The next time the Harris man
com es to call, let him show you
some o f the ways we help our
correspondents. Or drop us a
lin e . A n d w hen y o u ’ re in th e
Loop, com e in and see us.

HARRIS
BANK
Trust and Savings

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

111 WEST MONROE STREET-CH ICA GO , ILL. 60690

N o r th w e s t e r n Banker, June,

1965

16
Heads Safe Manufacturers
Robert Wilgus was elected president
of the Safe Manufacturers National
Association
(SMNA), N e w
York, at the an
nual meeting of
the safe and rec
ord protection in
d u s try a ss o cia
tion.
Mr. Wilgus, who
is protection mar
keting m anager
for the D ie b o ld
R. W IL G U S
Corporation, Can
ton, Ohio, will serve as association
president for a one-year term. Prior
to his election, Mr. Wilgus had served
as vice president of SMNA.

Announce Mosler Contest
The eighth annual contest to pick
Miss Drive-In Teller has been an
nounced by The Mosler Safe Company
with a week for two in sunny Puerto
Rico as the grand prize.
Any woman who works full or part
time as a drive-in teller is eligible to
enter the contest and has a chance to
win an all-expense trip to Puerto Rico
via Trans Caribbean Airways Jet and
a week’s stay at the famed Condado
Beach Hotel.
In addition to the grand prize, three
finalists selected by a panel of celeb
rity judges will be awarded an all-ex
pense trip to Chicago to attend the
American Bankers Association Con
vention. Mosler will provide complete
wardrobes for each of the finalists to
wear at the convention.
Bankers from all parts of the coun
try will have an opportunity to meet
the finalists at the convention. Fol
lowing the convention, Miss Drive-In
Teller—1966 will be selected by a na
tional vote of bankers.

New Recordak Executive

gunshell

c o in

wrappers

T h e f in e s t c o in w r a p p e r a v a ila b le f o r a u t o m a tic
coin c o u n tin g a n d p a c k a g i n g . U n iq u e c o n s tr u c tio n
e lim in a te s clo gg ing o f c o i n s — p r o v id e s tig h tly c rim p e d
ends. E nds turned on e w ay. M a d e of
h ig h e s t quality, e x t r a s tro n g s t o c k t o a s s u re
t h e u tm o s t in p r o t e c t i o n a n d r e l i a b i l i t y .
S t a n d a r d c o lo r f o r e a c h d e n o m i n a t i o n .
S Y M M E T R I C A L L Y P A C K E D 1 0 0 0 TO A C A R T O N

S p e c i f y “ S t e e l - S t r o n g ” G u n s h e lls and be
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THE C. L. D O W N E Y C O M P A N Y , H A N N I B A L , M I S S O U R I , DEPT. N
N o r t h w e s t e r n Banker, June, 196$

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

Allan R. Karcher, formerly of Eastman Kodak ComI pany, has become
associated in an
I a d m in is t r a t iv e
AT®
1 I staff position with
I K '* * *
? ’ Recordak CorpoM
M ration> a Kodak
WBjyBPT'' *
subsidiary, at its
executives offices
in New York.
*f|
Mr. K a r c h e r
a . R. k a r c h e r
joined Kodak in
1953. For the past
two years he has served as assistant
sales m anager, amateur products
northeast division, New York

MEET A REAL PERFORMER

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Federal Reserve Bank of St. Louis

Call our nearby office for a demonstration today!

B u rrou gh s Corporation
D E T R O IT , M IC H IG A N 48232

N o r t h w e s t e r n Banker, June, 19 65

o r th
w e s t e r n Banker, June, 1965
DigitizedNfor
FRASER
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

A BILLION
SALUTES TO OUR
CORRESPONDENT
BANKS
Iowa growth depends on the three basic “ M ’s” . . .
men . . . machines . . . and money. Central National’s
correspondent banks throughout Iowa had a yearend combined deposit total of $1,724,004,993.89. This
represents the financial resources needed for Iowa
growth . . . business, industrial and agricultural
growth. Central National is proud to work with
these banks and provide the services they need for
world-wide banking with electronic speed.

Fifth and Locust S treet . . Des M oines
D riv e -In

W a lk -U p T e lle r — Fifth and G ra n d

M em b er F ed era l D ep osit In sura nce C orp oration

N o r t h w e s t e r n Banker, June, 7965

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

t"hase M a n h a t t a n O ff e r in g
$250
M illio n C a p it a l N o te s

General Corporation is headquartered
in its own 12-story office building at
1701 Pennsylvania Avenue, N.W.

Chase Manhattan Bank late
T HE
last month announced plans to is

Stonier Graduate School

sue $250,000,000 of 25-year non-conver
tible capital notes. Approval was to
be obtained from the New York State
superintendent of banks and the offer
ing made available to the general pub
lic June 8. It is being underwritten
by an investment banking syndicate
managed by Lehman Brothers and
Lazard Freres & Company.
On March 31, Chase Manhattan’s
capital funds totaled $868,436,802. Cap
ital stock was $261,891,637, surplus was
$500,000,000, undivided profits were
$60,722,384, and reserve for contingen
cies was $45,822,781.
A mandatory sinking fund will pro
vide payments sufficient to retire $10
million of the notes on each June 1 in
the years 1966 through 1989, calculated
to retire 96 per cent of the issue prior
to maturity.

Financial General Promotions
Joseph S. Tressler has been elected
president of the Hawkeye-Security In
surance Company and the United Se
curity Insurance Company, succeeding
William L. Cobb, who was elected

president of Financial General Corpo
ration, the parent company.
Mr. Cobb was elected vice chairman
of the board of the two insurance

The Stonier Graduate School of
Banking resident session starts June
14 at Rutgers, The State University,
New Bruswick, N. J. A total of 1,100
students are registered for the session,
which extends through June 25.

Tim e and Temp

W . L. COBB

J. S. T R E S S LE R

companies. Maj. Gen. George Olmsted,
USAR (Ret.), continues as chairman
of the board of the companies.
Mr. Tressler served as executive
vice president of the insurance com
panies since his election October, 1964,
and was previously vice president. He
has been a member of the board of di
rectors of the companies, and on the
executive and investment committees
since 1958.
Mr. Cobb, now a resident of Des
Moines, Iowa, will shortly move to
Washington, D. C., where Financial

COMMUNITY BANK
TRUST DEPARTMENTS
FROM COAST TO COAST
Studley, S hupert T ru st In v es tm en t
Council Membership grows so rapidly
(almost weekly) that it is impossible to
publish a current roster-count in a
monthly magazine. Right now, well
over 200 community banks have joined
this unique effort. Why? Because trust
business is in a long-range boom . . .
and because Council Membership is
the community bank trust officer’s only
fully convincing answer when a trust
prospect asks: “ How are you equipped
investment wise to handle my account
prudently and efficiently?’’ Write for
details of Council Membership.

STUDLEY, SHUPERT
Trust

Investment

860 Suburban Station Bldg.

Council
Phila., Pa. 19103

N oFRASER
r th w e s t e r n Banker, June, 1965
Digitized for
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

YES— W e d e liv e r fu ll service
banking fo farmers, ranchers and
agribusinessmen. A franchise
news letter service

THE FARM PICTURE*
RANCH-FARM • DAIRY-FARM • SOUTH-FARM
P. O. BOX F

URBANA. ILLINOIS

61802

m-rim.iiUMltil-lltl-ll-ITO/.lilllL'HMillhiW

CH EONOLUX CORPORATION, a young

Grand Island, Nebr., company and a pio
neer of the new neon time and temperature
display system, has installed this 29-foot
pylon-mounted time and temp display for
the First National Bank and Trust Com
pany of Crawfordsville, Ind. The display,
entirely constructed at the Grand Island
Chronolux plant, features the exclusive
neon time and temp control/display sys
tem originated by Chronolux.

In fin a n cia l o p e ra tio n s all over the cou n try, y o u r
cu sto m e rs d eserve b etter-th a n -p a r p e r fo r m a n c e .
You ca n h e lp m ake th eir w ork m ore p ro fita b le th ro u g h
th e Irvin g.“th e h a n k fo r h a n k ers and b u s in e s s m e n .”

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

I r v in g T r u s t C o m p a n y
One Wall Street, Neve York,N.Y. 10015
G eorge A . M

urphy,

Chairm an of the Board

N ational Division— H . M
MEMBER

il l e r

FEDERAL

il l ia m

E. P e t e r s e n , President

L a w d e r , Senior V ic e President in Charge

D E PO SIT INSURANCE

CORPORATION

N o r th w e s t e r n B an ke r, June, 1965

(D o h a , fU m o O d lin
P residen t, A m erica n B an kers A ssocia tion ;
Chairman, The P u get Sound N ational Bank, Tacoma,
W ashington.

Speaking before the 69th annual convention of
the North Carolina Bankers Association, you
called for legislation to make sure that branching
privileges of state and national banks are granted
on an equitable basis.
There is no question in our minds that the
Comptroller of the Currency has ignored state
laws in granting branching powers, and it is high
time that the AB A takes a vigorous stand on
this phase of the banking business if it is to
continue to represent both state and national
banks. Here are the highlights of your remarks
made in North Carolina :
“ The intent o f Congress in this matter is rather
clear and has been expressed several times over
the years. Simply stated, it is this: branching
arrangements of national banks should follow
those prescribed by state law in a particular
state.
“ However, it is possible to interpret the Federal
law to read that branch laws applying to state
banks must be observed by national banks only to
the extent they apply to matters o f capitalization
and location.
“ Using this interpretation of the law, the pres
ent Comptroller authorized a national bank a de
novo branch in a city in Utah under circumstances
in which a state bank could not open a branch
except by a merger. The Utah court upheld the
Comptroller’s decision.
“ In an identical case, a court in Washington,
D. C., ruled just the opposite.”
You have asked the state bank and national
bank divisions of the AB A to appoint three rep
resentatives to a special committee to look into
the question of branching and to come up with
some recommendations that the whole banking
industry can support. The following five points
were agreed upon by the com m ittee:
“ 1. The McFadden Act (12 U.S.C., Section 36)
should be amended to provide that the consoli
dation or acquisition of banks shall not be deemed
to empower a national banking association to
open or establish in any other manner new
branches if a state bank would be prohibited
from doing so by the state laws. This would
clear up the different interpretations of the law
as we had in the two Utah cases.
o r FRASER
t h w e s t e r n Banker, June, 1965
Digitized Nfor
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

“ 2. This point, also an amendment to 12 U.S.C.
36, would say that unless there is express affirma
tive statutory authority in a state for the crea
tion of branches, then there shall not be an impli
cation on the part of the Comptroller that he is
authorized to permit national banks to branch.
“ 3. This amendment would provide that if state
laws place a geographic limitation on branching,
such as counties or miles from the main office,
then the Comptroller will be bound by these geo
graphic limitations.
“ 4. Some states have what are referred to as
facilities which can perform certain limited bank
ing functions, such as cashing checks, taking de
posits and making change. The fourth recommen
dation would limit national banks to those func
tions or activities permitted by state laws. This
change would also limit national banks as to the
number of branches or facilities set forth in state
laws.
“ 5. This amendment to the law would read,
‘However, in determining if a given facility is a
branch or an extension of an existing institution,
the Comptroller will be bound by statutory law
of the individual state, if any. If there be no
state statute, the determination shall be made by
the Comptroller of the Currency.’ ”

O&wc CL. (jûJJLLul (RjoJbsiAjhjwL:
Senator from V irgina and Chairman
o f Senate Banking and C u rrency C om m ittee,
W ashington, D. C.

Your Senate bill 1698 to give federal bank
supervisory agencies complete jurisdiction over
bank mergers has the support of a large number
of influential banking groups throughout Amer
ica. The executive council of the American
Bankers Association has given the bill its unan
imous endorsement.
You have stated that the measure would elim
inate the misunderstanding, confusion, and con
troversy which we now find in the bank merger
field. It would exempt bank mergers approved
under the Bank Merger Act of 1960 from the
restrictions of the Sherman Antitrust A ct and
section 7 of the Clayton Act. It would prove
that the current involvement of the Justice De
partment in this area was never contemplated.
W e endorse yonr bill with reservations. We
are not sure that even though the bill is passed
it will completely clear up the misunderstandings.

“We and our customers are very
pleased with our Time/Temperature
sign which has brought many
compliments to our bank.”
W. G. Pope, President
Mercantile Bank & Trust, San Antonio, Texas

Erected by: Texign Displays, Inc., Victoria, Texas

Once upon a time, Time/Temperature displays
were complicated, costly and required a lot of
complex electronic maintenance.
No more! Digit Display has changed all of
this . . . with Simplified Mechanical Design . . .
Mass Production . . . Easy Local Service . . .
This is why we have become the world’s largest

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

manufacturer of Tim e/Tem perature displays.
All of this adds up to big savings (as much as
50%) for you. Good reason to get the facts . ..
Ask your local electric sign company for a
quote or write to us for your free copy of
“ Timely Ideas".

DIGIT D I S P L A Y C O R P O R A T I O N
4938 West Irving Park Road, Chicago, Illinois 60641
Telephone: Area code: 312 286-3233

Please send me a copy of ‘‘Timely Ideas” .
N am e
Com pany

T itle
Address
j

State

City
_

—— _

—

Zip

—

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

Heads Industrial Development
Harris Trust and Savings Bank, Chi
cago, has expanded the plant location
and economic development service of
its financial and economic research de
partm ent. T his
service will now
be provided by
the newly estab
lished corporate
financial services
division. John G.
R o n c h e tto has
been named man
ager of industrial
d e v e lo p m e n t to
J. G. R O N C H E T T O

(lir e C t

th e

b a n k ’S

efforts in foster
ing industrial growth in the Chicago
area.
Mr. Ronchetto joined Harris Bank
from the Illinois State Chamber of
Commerce where he was manager of
the organization service department,
assisting companies to locate plants
in Illinois, counseling on state leg
islation relating to economic develop
ment and advising on local programs
to attract industry.

List New York Promotion

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Problem: a good customer comes to you for a business loan — and you’ve
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as much secured and unsecured credit as your lending policies permit.
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Digitized Nfor
o rFRASER
th w e s t e r n Banker, June, 1965
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Arthur C. Merrill has been appoint
ed a vice president of First National
City Bank, New York. Mr. Merrill
is with the investment advisory de
partment of the bank’s trust and in
vestment division.
Mr. Merrill joined Citibank in 1953
as an assistant cashier in the OhioIndiana-Michigan district of the bank’s
national division. He transferred to
the investment advisory department
of the trust and investment division
in 1958 and was named an assistant
vice president in 1959.

To Form Holding Company
Plans for the formation of a holding
company, BT New York Corporation,
affiliating their three banks, were an
nounced by William H. Moore, chair
man of the board of Bankers Trust
C om pany, New York; Edward S.
Rooney, chairman and president of
First Trust Company of Albany, and
Charles W. Hawkins, president of The
First National Bank of Spring Valley.
Under the holding company plan
agreed upon, stockholders of Bankers
Trust Company would receive one
share of the holding company’s stock
in exchange for each share of Bankers
Trust Company stock. Each share of
stock of First Trust Company of Al
bany would be exchanged for 1.15
shares of stock, plue $12 principal
amount of 15-year 4.5 per cent deben
tures of the holding company. Each

share of stock of The First National
Bank of Spring Valley would be ex
changed for 1.6 shares of holding com
pany stock, plus $15 principal amount
of debentures.
Directors of each bank have ap
proved the arrangement, which also
requires the approval of the New York
State Banking Department, the board
of governors of the Federal Reserve
System, and the stockholders of each
bank.

50th Wedding Anniversary
Mr. and Mrs. Henry H. Byers ob
served their 50th wedding anniversary
in Des Moines on Sunday, June 6. A
special reception was held for the
couple at Grace Methodist Church.
They were married June 1, 1915, in
Council Bluffs.
Mr. Byers is president of the Bank
ers Service Corporation in Des Moines.
He started in the bank brokerage busi
ness more than 50 years ago. In 1915,
he was employed as secretary by the
old Charles E. Walters Company,
which was located in Council Bluffs.
The firm was moved to the First Na
tional Bank building in Omaha in De
cember, 1916.
Bob Goethe and Mr. Byers liquidated
the Walters Company in 1948 and Mr.
Byers came to Des Moines to organize
the Bankers Service Company. Mr.
Goethe set up a new company of sim
ilar name, which was subsequently
sold to others.
On April 15 of this year, Myron
Karsten of Maquoketa and associates
purchased the operating assets of the
company and set up a new corpora
tion, Bankers Service Corporation. Of
fices are at 1301 Register and Tribune
building, Des Moines.

Russell V. Peterson can help
increase your loan capacity . . . today!
Don't turn that loan down! Turn to
St. Paul Term inal W are h o u se — instead.
W are h o u se R e ce ip ts may en ab le you to place a loan
w here none was possible before. St. Paul Term inal W areh o u se
provides p ar-excellen ce protection for the lender.
So h e re ’s a useful tip : W hen your custom er's inventory
can be converted into prim e collateral, there is no need
to turn that loan down.
Through field w arehousing, St. Paul Term inal W arehou se
provides Preferred W are h o u se R eceip ts, the best co llateral
for c re d it extension beyond open line limits.
K eep the m any benefits of this v a lu a b le serv ice part of
your bank. Pick up the phone and call Russell V. Peterson
to d a y. Put SPT to work for you.

RUSSELL V. PETERSON, 612 Farnham
O m a h a , N eb ra s k a 6 8 106.

Bldg.

Phone 3 4 1 -7 1 9 0

ST. P A U L T E R M I N A L
WAREHOUSE COMPANY
Offices in principal cities
MR. AN D MRS. H E N R Y H. BYERS

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

4 2 5

East

8th

Street

St. P a u l ,

Minnesota

N o r th w e s t e r n Banker, June, 1965

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and th e V irg in Islan ds. In clu d e s ro u n d -trip je t
transp ortatio n from w in n e r’s home, accom m oda
tio n s at fine hotels, dinin g at exotic restaurants
and sightseeing to u rs— PLUS a matched set of
Samsonite luggage . . . a Kodak 800 Instamatic
35m m camera with Carousel 600 projector. . . and,
$2,000 in Bank of America Travelers Cheques.

★

2 SECOND PRIZES:
Choice of a Pontiac Tempest Sedan,
Convertible or Station Wagon— with
radio, heater, white sidewall tire s and
au tom atic transm ission.

★

a mm 30

3 THIRD PRIZES:

fo u r th p r iz e s :
RCA Victor AM-FM,
portable radios

Kodak 800 Instamatic 35mm camera
plus a Kodak 600 Carousel projector.

★

200 FIFTH PRIZES

★

SPECIAL
BONUS PRIZE:

★

To the Grand Prize winner's office — fo r the
enjoym ent of one and all — we’ ll award:
An RCA Victor Home Entertainment Center or
a B aum ritter Furniture Suite, in c lu d in g tw o

Bank of America Travelers Cheques
; ASSOCIATION • MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for
N o FRASER
r t h w e s t e r n Banker, June, 1965
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Federal Reserve Bank of St. Louis

★

RCA-Victor Home Entertainment Cen
ters— w ith Color TV, Stereo Hi-Fi, AMFM Radio and FM Stereo. TO BE
AWARDED IN SPECIAL DRAWINGS—
JUNE 15, JULY 15. AND AUGUST 15.

There’s still tim e to enter. Bank of Am erica’s Travelers
Cheque contest continues through September 15,
1965. Everyone who sells Bank of America Travelers
Cheques (and is not a Bank of America employe) is
eligible. The more cheques you sell the better your
chances are. Is your bank participating? If not, why
don’t you ask the man in charge to mail this coupon?
BANK OF AMERICA NATIONAL TRUST >

★

PLUS 3 SPECIAL AWARDS:

Kodak 100 Instamatic
camera outfits.

★

couches, fo u r club chairs and a table or an Oasis
Hot and Cold Water Cooler com plete w ith instant
coffee and tea, cups, spoons and oth er supplies
. . . or an equivalent prize!

BANK OF AMERICA TRAVELERS CHEQUES
B o x 3415, R in co n A n n ex, San F ra n c is c o , C a lifo rn ia 94120
We w a n t to e n te r th e ISLAN D HOLIDAY CONTEST.
P lease se nd us y o u r c o n te s t k it.
BANK N AM E
,

NAM E

President

ADDRESS
CITY

STATE

ZIP

★

Is your bank statement
dull and drab? Read
this sampling of
ideas— tested by
bankers— to make your
statement more appealing.

The State of Your Statement

EARING in mind the fact that
your bank’s annual printed
statement of condition is a re
flection of your institution, you may
wish to take a long, hard look at it
this year before it is again distributed
far and wide.
Does it differ much from last year’s
model, or has it been much the same
for decades? Is it difficult to read,
unimaginative and uninviting? Could
it be that your statement itself is a
liability offsetting your bank’s many
assets?
It needn’t be.
If you intend to pay the cost re
quired for a printed statement, you
may as well design a statement which
will attract more readers and which
will leave a more favorable impression
with those you wish to impress. The
same may be said, of course, for your
newspaper publication of statements
of condition and your printed adver
tisements.
Contents, in many cases, will deter
mine whether your statement receives
more than a passing glance.
Following are several ideas which
have been used by bankers to increase
interest in thier annual statements of
condition. Perhaps among them is
one which will appeal to you. Or,
perhaps one will suggest an idea
which you can apply to dressing up
your statement.

On the front of the statement were
the words, “As we start 1965 together.”
“A Resolution to Serve” appeared
in print inside the four-page state
ment.
The list of resources and liabilities
was printed on the back of the fourpage statement.
2. The First National Bank in Belden, Neb., ushered in the New Year
with a letter-size statement exclaiming
the fact that 1965 would mark the
bank’s 75th anniversary in business.
Beside a picture of the entire staff
appeared the words, “W e’re excited
about our 75th anniversary.”
Following a brief message wishing
customers and friends a happy new
year appeared the signature of G. E.
(Earl) Belden, the bank’s president.
3. The statement issued by the Peo
ples State Bank, Cleveland, Minn., was
accompanied by a four-page illustrated
folder devoted to a discussion of farm
problems faced during the preceding
year and an appraisal of the farm
picture for 1965. Effectively local
ized, the pamphlet was written in in
1.
The First National Bank in Pi formal terms easily understood by the
reader. (E xam ple: “The soybean
erre, S. 1)., made a greeting card of
its annual statement. Inasmuch as processor needs 10 to 12 cents a bushel
the statement is issued early in the to come out and make a profit. . . .
New Year, it is an excellent means of It looks like 2,000,000 acres more of
greeting customers and friends with soybeans will be planted in 1965 be
something other than digits and dol cause the support price will remain
the same as 1964.” )
lar signs.

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Federal Reserve Bank of St. Louis

4. First Western State Bank of Mi
not, N. I)., termed its statement of con
dition, “A report from James G. Nor
ton, Cashier.”
Each of the entries on the statement
was accompanied by a simply-worded
explanation of the terminology used.
5. The Omaha National Bank, Oma
ha, Neb., augmented the publication
of its annual statement of condition
with a full-page newspaper ad devoted
to its employees.
The full-page ad was headed simply
“assets.”
Beneath that lone word appeared,
in alphabetical order, the name of
every member of the bank’s staff.
At the bottom of the page, beside
the bank’s signature, was the follow
ing paragraph:
“Elsewhere in this newspaper is a
report of the Omaha National Bank’s
assets and liabilities. But money is
only one measurement of a bank; a
bank’s people are much more impor
tant.
“ So we felt you would be interested
in the names of our people assets—
guards, tellers, computer program
mers, one of them is even a presi
dent,”
With just a little imagination and
ingenuity, your bank statement can
be entertaining, interesting and re
vealing—for no more than it’s costing
you to publish it now.— End.
N o r th w e s t e r n Banker, June, 1965

The Hank D irector and
Y

Very seldom does the responsibility of the member of the
board of directors of a bank come under discussion by bank
officers. However, as is noted in the following article, the di
rector's connection with a quasi-public institution brings to bear
responsibilities which do not accrue to the director of an or
dinary business enterprise.

ROBABLY one of the least dis
cussed and most important areas
in banking is the part that a
bank director plays in the operation
of his or her bank. Election to the
board of directors of a bank can be
considered to be a special local cita
tion, and yet it carries responsibility
with it. There is a difference in being
a director in a business or industrial
corporation and in being a director in
a bank. Banks do business with other
people’s money and, therefore, their
directors are held more strictly ac
countable.
The duties and liabilities of a bank
director fall into two classes—those
set forth in the statutes and those
imposed by common law arising from
the fiduciary nature of the relation
ship of the bank directors to their
stockholders and depositors. This fi
duciary relationship exists because
banks are considered to be quasi-pub
lic institutions. Hence, as I stated,
directors are subjected to a higher de
gree of responsibility than directors
of other types of corporations.

The Director’s Responsibilities

A bank director has these responsi
bilities. He has a moral responsibility
to the depositors. After all, a deposi
tor is the most important person in
your bank. He supplies your stock in
trade, and that is money known as a
deposit. He also has a responsibility
to the shareholder as he or she is the
person who supplies the capital for the
bank. In regard to capital, the direc
tor should understand fully the bank’s
Digitized Nfor
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Federal Reserve Bank of St. Louis

capital strength or weakness, for not
only must the capital structure bear
the brunt of losses but, in addition, it
largely determines the extent to which
the bank can take advantage of oppor
tunities.
The bank director has a moral re
sponsibility to the employes. The
board of directors should adapt defi
nite policies with regard to personnel.
An alert and conscientious director
will lose no time in ascertaining
whether the management and employ
ee personnel of the bank are capable
and honest and attentive, and of these
qualities I think that competence is
of the most importance. We assume
they are honest.
The director also has a moral re
sponsibility to the community. Bank
directors can move freely throughout
the community. They can and should
be able to identify problems, and then
analyze them to determine a course
of action. In banking, our future de
pends almost entirely upon what hap
pens to our communities. Did you
ever stop to think of what would hap
pen if you tried to move your bank to
some other community? You would
simply have to start all over again.
Did you ever stop to realize that you
could not take your depositors with
you? Our position as bankers is vast
ly different from that of other busi
nesses. Any other business could shift
its operation to some other city or
locality with little or no loss and, in
fact, in some situations it might be
able to improve its competitive posi
tion. Therefore, as bankers—for our

own protection—we must be aware of,
and be prepared to lead others in, ev
ery constructive d e v e lo p m e n t designed to improve the communities in
which we live and serve.

The Director’s Liabilities

The duties and liabilities of a bank
director fall into two or three classes
—those set forth in the Federal stat
utes and state laws and the common
law and arising from the fiduciary
nature of the relationship of the bank
directors to their stockholders and de
positors. With reference to their stat
utory duties and liabilities, there is
the over-all duty to manage the af
fairs of the bank directly or through
duly appointed officers in a careful
and prudent manner.
For example, in the case of national
banks, Section 5239 of the United
States Revised Statutes 12 U.S.C. 93
provides that if any director knowing
ly violates, or knowingly permits any
officer or agent of the bank to violate,
any provision of the national bank act,
the director will be personally liable
for all damages which the bank or any
stockholder, or any other person, may
sustain as a result of such violation.
Section 22 of the Federal Reserve Act
12 U.S.C. 503 contains a similar pro
vision that is applicable to directors
of all member banks.
In my opinion, the statutory provi
sions that are most likely to involve
director liability are those dealing
with real estate loans and excess loans
to any one borrower.
The common law duties of a bank

^
”

H is Êiesptm sibilities
director are clearly defined in the fol
lowing excerpt from a federal case on
this subject decided in 1907:
1. Directors are charged with the
duty of reasonable supervision over
the affairs of the bank. It is their duty
to use ordinary diligence in ascertain
ing the condition of its business and
to exercise reasonable control and su
pervision over its affairs.
2. They are not insurors or guar
antors of the fidelity and proper con
duct of the executive officers of the
bank, and they are not responsible
for losses resulting from their wrong
ful acts or omissions—provided they
have exercised ordinary care in the
discharge of their own duties as di
rectors.
3. Ordinary care in this matter, as
in other departments of the law,
means that every degree of care,
which ordinarily prudent and diligent
men would exercise under similar cir
cumstances, has been taken.
4. The degree of care required fur
ther depends upon the subject to
which it is to be applied, and each
case must be determined in view of all
the circumstances.
5. If nothing has come to their
knowledge to awaken suspicion that
something is going wrong, ordinary at
tention to the affairs of the institution
is sufficient. If, on the other hand,
directors know—or by the exercise of
ordinary care should have known—
any facts which would awaken sus
picion and put a prudent man on his
guard—then a degree of care commen
surate with the evil to be avoided is
required, and a want of that care
makes them responsible. Directors
cannot—in justice to those who deal
with the bank—shut their eyes to
what is going on around them.
6. Directors are not expected to
watch the routine of every day’s busi
ness, but they ought to have a gen
eral knowledge of the manner in
which the bank’s business is con
ducted, and upon what securities its

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

By W IL L IA M P. R O N A N
President
Decorali State Bank
Decorali, Iowa

larger lines of credit are given, and have our Farm Credit Course at Iowa
generally to know and give direction State University and, of course, we
to the important and general affairs of have our own fine graduate school of
banking at the University of Wiscon
the bank.
7.
It is incumbent upon bank direc sin. Utilizing such facilities, a bank
tors in the exercise of ordinary pru not only trains its people for greater
dence, and as a part of their duty of responsibilities, but also expedites the
general supervision, to cause an exam inflow of new thinking and ideas,
ination of the condition and resources which certainly helps our institutions.
Directors should also encourage offi
of the bank to be made with reason
cers to participate in the periodic
able frequency.
There is a certain overlapping of meetings of bankers associations. It
statutory and common law duties but, would benefit the banking industry,
taken together, it is obvious that a too, if more bank directors would at
bank director must be considerably tend these meetings more frequently.
more than a mere figurehead. On the
Another thing that bank directors
other hand, the courts have recognized should observe is whether any officer
that most bank directors are busy men or employee is operating another busi
who can spend only a limited amount ness. Any bank dealing with con
of time on bank matters and who have cerns, in which officers, directors, or
usually been chosen because of their employees or their relatives are inter
achievements in other fields.
ested, should be observed closely.
The Duties of the Board

What are some of the duties of the
board of directors? First—the elec
tion of competent officers to manage
the bank. In addressing themselves
to the problem of bank personnel, the
first question to be faced is whether
the bank is being capably managed,
and the scrutiny should begin with the
president.
Sometimes it may be necessary to
hand the reins to younger or new
hands, perhaps even to promote junior
officers. In many small banks there
is the problem of assuring competent
succession to present senior officers
who are approaching the age of re
tirement. The training of personnel
for greater usefulness to the bank
should be a policy of the board. Mem
bers of the American Bankers Asso
ciation and of the state banking asso
ciations should take advantage of the
educational opportunities available to
junior officers and employees. A col
lege in the bank’s own vicinity may
offer such an opportunity.
We have our American Institute of
Banking courses—both by correspond
ence and by actual class work. We

Attract Cream of the Crop

Now, what should we do about ade
quate salary scale to assure retention
of a competent staff? Banks are in
tegrity institutions and should attract
the cream of the crop. Directors
should see to it that the bank pays
salaries commensurate with those paid
elsewhere in the community for sim
ilar types of work. Neither should
promotions be so long delayed that
ambition will wane and unhappiness
result. Banks—to compete these days
with industry—must offer a variety of
fringe benefits to their officers and
employees, such as retirement plans,
health and hospitalization programs,
and life insurance, either at a lower
cash cost than prevails outside the
bank or on a contributory basis.
Each director should acquaint him
self with the many functions of the
business. A director’s duty is to di
rect and not to be led. He should be
very familiar with the loan policy of
his bank. He should be very familiar
THE BANK DIRECTOR . . .

(Turn to page 64, please)
N o r th w e s t e r n Banker, June, 1965

Sm all Hanks
A eed B etter
Anditinij H elp

not these transactions are accurately
reflected in the bank’s records.
The examination, on the other hand,
is primarily a qualitative analysis,
aimed at developing the value of these
holdings, their soundness, the legality
of the bank’s actions, the soundness
of capital, and the quality of manage
ment. These, of course, are very
broad definitions.
The examiner and the auditor, be
cause of the basic differences in ulti
mate objectives, do not even approach
their tasks from the same point of
view. They have been trained to look
at the same loan portfolio, the same
deposit ledger, from far different per
spectives.
Examiner’s Duties

By K . A. R A A D A L L
Chairman
Federal Deposit Insurance
Corporation, Washington, D. C.

■ TH E A U T H O R , M r. R a n d a ll, to ld b a n k
ers a t th e 30 th Eastern R eg ion al C o n v e n
tio n o f N A B A C in P itts b u rg on M a y 24 th a t
th e pres en t econo m ic e n viro n m en t requires
a g r e a te r use o f a u d itin g prog ram s by th e
n a tio n 's banks, la rg e and sm all. H e s ta te d
th a t m ost, if n o t a ll, o f th e n a tio n 's la rg e r
banks h a ve w o rk a b le a u d it prog ram s. H e
o u tlin e d th re e are a s o f a c t iv it y being con
sid ered by F D IC to a id sm all banks— g r e a t
er stress on d ire c t v e rific a tio n , uniform
a c c o u n tin g procedures, and a d v is o ry team s
o f F D IC a u d ito rs a v a ila b le to te a c h banks
a u d itin g p rog ram s. D e ta ils o f th ese th re e
id eas a re discussed in th e ac co m p a n yin g
e x c e rp t fro m his address.

ROM the viewpoint of the Fed
eral Deposit Insurance Corpora
tion, we have a major interest in
seeking development of audit pro
grams in banks which have none or
which have only the bare beginnings
of audit procedures in their opera
tions. We feel most strongly that
some effort must be made by every
bank, whatever its size.
Any bank officer, employee, or di
rector can be utilized to some degree
in audit procedures. If size does not
permit a full-time auditor, we would
prefer a director, or an officer, devot
ing assigned time to this function. We
feel strongly that some positive effort
should be made to solve basic audit
problems in smaller institutions.
Minimal audit programs in banks
with even as few as two employees
could prevent defalcations. No bank
is so small as to be safe from internal
fraud.

By-Products of Auditing

Additionally, I feel that some audit
programs, whether through a full
N o FRASER
r th w e s t e r n Banker, June, 1965
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Federal Reserve Bank of St. Louis

time auditor, through the board of di
rectors, or through an outside public
accountant, can have helpful by-prod
ucts which would tend to lessen or
eliminate the cost factor. A good
audit program, after all, requires the
use of accounting techniques, and this
in turn gives a bank the tools for cost
analysis, and quite probably for cost
controls. How many small bankers
would find out for the first time the
real cost of their many operations?
How many would find ways of trim
ming excess costs, or of improving in
come patterns?
This, then, is the supervisor’s view
of what an audit should do, and how
audit can be strengthened for the
whole banking system, with emphasis
on the smaller institutions which lack
good programs or which, in all too
many cases, have no program at all.
From this discusison we can turn to
the supervisor’s present role in this
area, and some thinking on possible
developments within the supervisory
structure for better audit procedures
for the nation’s banks.
Audit vs. Examination

Historically, the Federal Deposit In
surance Corporation has drawn a dis
tinction between an audit and an ex
amination. They are not the results
of the same processes, and their ulti
mate goals differ.
The bank audit is a quantitative
analysis of a bank’s assets and liabili
ties, its income and expenses, deter
mining what does and what does not
belong on the books, and whether or

Nevertheless, the examiner of today
does use some auditing techniques.
He will verify and reconcile accounts. A
He physically counts cash. He proves
deposit figures. He checks collateral
on loans. He checks and verifies se
curities owned by the bank. He checks
to see if there are notes backing up -A
each ledger in the loan portfolio. He
verifies participations and notes out
for collection. He proves income and
expense, checks the accuracy of the bank’s records on a spot basis; on rare
occasions he may even use some ele
ments of direct verification. He re
views, although he does not verify,
expense accounts of the bank.
Additionally, as a long standing pol
icy, the Corporation has instructed
examiners to accord special attention,
from an audit standpoint, to one-man v
banks, banks without mandatory va
cation policies, carelessly run banks,
and the smaller banks without any
audit procedures. In these situations,
our Manual of Examination Policies
sets forth some specific audit tech
niques which are to be used, and
which are used as a matter of course.
Management Evaluation

Among other required examination
objectives, one of major importance
is the evaluation of management. Es- 4
sential to such an evaluation is a re
view of the bank’s records, its system
of internal control, and its audit pro
gram, to determine if they are suffi- A
cient to safeguard the bank’s assets.
One page of the examination report
is devoted to these areas, and examin
ers are instructed to emphasize short
comings in these areas in their ex
amination reports.
In short, it is our view that the ex
amination of a bank, while not neces
sarily requiring any extended audit
checks, should include an appraisal
of internal routine and control and of
a bank’s audit program, and should

31
require more extensive audit test
checks in situations where deficiencies
exist.
In the context of today’s banking
system, and of today’s economy, we
are convinced that more must be done,
especially in the field of smaller banks.
Accordingly, we have told our exam
iners to look long and hard at every
examined bank’s auditing program.
Emphasis on Verification

I have stressed verification in this
talk, because of our view—a view
shared by the other Federal banking
agencies—that it is becoming increas
ingly important to all banks, large and
small. Accordingly, the Corporation
is instructing its examiners to place
increased emphasis on the use of ver
ification procedures as part of any ac
ceptable audit program, and, where
verification is not being used, to urge
management to start a verification
procedure.
There is a serious question as to
just how far the supervisory agencies
should go in the field of audit.
If the supervisory role is to be one
of prevention of any defalcation, if the
supervisor is to substitute for manage
ment in this vital area, then of course
greater audit techniques by the super
visor are essential. But it seems to
me that the supervisor’s role is not
one of management, that it is improp
er for the supervisor to assume the
manager’s duties. We feel it is our
duty to act as a guide, as an instructor,
as a developer of technique. This is
eminently proper. How much more
is?
Area of Management

As you may gather by this, I do not
want in any way to suggest that any
supervisory authority wants to exer
cise the proper functions of manage
ment. And, in our view, to a large
degree audit is a management func
tion, or an ownership function. We
should not, under the existing system,
make judgments which management
must make. Nor should we exercise
the controls which properly belong to
management.
Yet, we do have a duty to the indus
try and to the nation as a whole to
make sure that management in this
sensitive profession p r e s e rv e s the
soundness of the bank and its ability
to serve its community. We do have
the duty to assure the nation that
proper standards are being maintained
and that the nation’s banks continue
sound. Where is the dividing line be
tween management’s duties and the

U rges Newt id ea fo r H an kers
M a k in g C a ttle F eed er
■ TH E A U T H O R o f th e a c c o m p a n y
ing a r tic le , Francis L. Y ork, has had
unusual success in fo re c a s tin g liv e
stock and crop co n d itio n s, as w e ll
as m a rk e t changes a ffe c tin g both
are a s o f fa rm p ro d u c tio n . During a
re c e n t v is it to th e N O R T H W E S T E R N
BANKER office he discussed an id ea
he fe e ls w o uld help p re v e n t d e
pressed c a t t le
prices e x p erien ced
th e p a s t y e a r.
W e asked M r. Y ork to p u t his
suggestion in w ritin g so w e could
subm it it to our read ers , since he
values h ighly th e opinions o f b a n k
ers. P lease le t us h a v e yo u r co m
m ents or suggestions re la tin g to th e
fo llo w in g a r tic le :

ANKERS not only can pre
vent a repetition of the
1963 cattle price dilemma,
in addition, they can greatly en
hance the possibility of maintain
ing fair prices for all livestock.
It has been said, and it is true,
that an ounce of prevention is
worth a pound of cure. This ap
plies to livestock pricing the
same as it applies to any situa
tion. We now know that the
main factor in cattle price im
provement since 1963 has been
minimum weight marketing. We
certainly must now agree that
since this worked so well as a
cure it will have greater effect
as a preventive measure.
Bankers and other money lend
ers and the feeders must broad
en their thinking to include the
entire meat industry. No class
of livestock or poultry produc
tion today can succeed with com
plete disregard of the relation
ship of other classes.
We need to visualize the meat
industry today as four separate
and continuous production lines.
One for beef, one for pork, one
for lamb and one for poultry. The
capacity of each production line
is determined by the per capita
consumption of each product. If
there is a temporary shortage on
one line we know from experi
ence that substitutions will be
made at the consumer level.

By FRANCIS L. Y O R K
Publisher
HOT LINE News Letter
Farmers Market Service, Inc.
hi dianoia, Iowa

We also know that overloading
one line not only will depress
the price of that product but will
also depress the price of the
other three as well if the over
loading continues.
Bankers have personal contact
with livestock producers. This
fact alone places them in the best
possible position to influence the
livestock feeder to regulate pro
duction to immediate demand.
Bankers have an organization
through which this effort can
be coordinated for best results.
Now the question arises, would
bankers be using undue author
ity by using their influence on
feeders to regulate the produc
tion of meat? My answer is ab
solutely not. In fact, I sincerely
believe they could go one step
further and require a cattle loan
to become due and payable when
the cattle reached a weight not
to exceed 1,100 pounds. This is
merely loan recovery insurance.
It is no different than the re
quirement of full coverage insur
ance on a loan to purchase a new
automobile. Or the requirement
of short term life insurance on a
borrower with insufficient collat
eral.

In conclusion, I would like to
impress upon you that a success
ful solution to any problem re
quires individual effort. Bank
ers are the only group presently
in a position to influence the in
dividual effort necessary to pre
vent a repetition of 1963 cattle
prices and depressed hog prices
for most of the past seven years.
— End.

AUDITING HELP . . .

(Turn to page 38, please)

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Northwestern Banker, June,

1965

32
“TABS”

11V* II#»//; 0 'usietners K eep

T h e ir M e n e y

T A B S * o#i
FRESH idea for banking, one
that is an exclusive, new service
designed by Louisiana National
Bank, is b e in g offered to Baton
Rougeans as a “pill of goodwill” for
it offers a way to relieve financial ills.
The new service—“TABS”—Tailored
Automated Budget Systems, is devised
as a free community service to help
cu sto m e rs keep “TABS” on their
money.
Automation brought sighs of relief
to personnel in the operations depart
ments of commercial banks, but to
those in public relations it heralded a
new nightmare, “the spectre of the
n u m ber co m p le x .” Bankers soon
learned that customers didn’t want to
be thought of as NO. 0348-213. Deposi
tors were confident that their names
were the all-important open-sesame to
a private world of banking.
Bankers realized from the beginning
that computers would create some ad
verse customer reaction, but there
was another surprise in store for serv
ice charges (long due for revision in
most areas) were on the rise; thus,
it was quite natural for customers to
attribute these rising costs to the in
troduction of the wired monster.
How could a large Computer Center
be turned into a personal tool for
the individual depositor? Could he be
made to feel that the employment of
electronics banking would offer him
new and improved services without
additional costs?

The President’s Idea

After considering many avenues of
approach, the bank’s dynamic new
president, Charles W. McCoy, came up
with a new concept of banking serv
ice. The president said, “Let’s turn
this electronic genius into an instru
ment for the common man. W e’ll
provide him with something he dis
likes to do himself. Let’s use our com
puters to prepare an individual budg
et tailored to meet his personal needs,
and all without cost to him.”
A survey of budget systems de
signed for family use revealed that
o rFRASER
th w e s t e r n Banker, June, J965
Digitized N
for
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Dr. John W. Chisholm, professor of
economics, College of Business Admin
istration, Louisiana State University,
has often told his classes that the root
of most money problems lies in a lack
of adequate planning; therefore, he
was most willing to assist us in the
development of this special program
designed to help Baton Rougeans
along the road to financial security.
This exclusive, new LNB service
originated with a cost of living sur
vey made in Baton Rouge by the Cen
sus Bureau of the Federal Govern
ment. Dr. Chisholm took the census
data, collected from actual interviews
with families living in Baton Rouge,
and compiled for every income level,
family size, area of occupation, age
group, race, etc., a composite picture
which shows the expenditure made
by such a family in our city. This was
the i n f o r m a t i o n the programmers
needed to complete the finished prod
uct . . . “TABS.”
It was up to the public relations de
partment to “tell the public” about
Louisiana National’s newest service.
The first step was to select a name
for the program, one which would be
descriptive of the service, as well as
creative. The name developed was
“TABS,” which stands for Tailored
Automated Budget System; hence, the
idea was devised as a free community
service “to help you keep tabs on
your money.” The name and design
were trademarked, and the bank was
ready for business.

By P R E S T O N V . K O R S
Vice President
Louisiana JSational Bank
Baton Rouge, Louisiana
breakdowns of family income into
budget categories, whether developed
by individual authors, business insti
tutions, or the government, assumed
that all families are alike. These pre
pared budgets are formulated with
percentage breakdowns for the vari
ous divisions made along either an in
come base or size of the family. Such
budgets try to put us all into the same
mold, but we keep poking out here
and there — so, the budget doesn’t
work. The point is that budget guides
have never before been tailored to
meet the individual’s specific situa
tion, to give him something to com
pare his living-expense status with
that of others exactly like him. And
. . . then came “TABS.”

TCTAL MCNThLY INCOME AFTER TAXES
t
800
AGE 35
FAMILY SIZE 4
OCCUPATION - SALAR I EC» PROFESSIONALS OR OFFICIALS

SAVINGS
PERSONAL INSURANCE
FCR INVESTMENTS
MORTGAGE PAYMENTS OR RENT
UTILITIES - LIGHT, GAS, C HATER
HCUSEHOLC OPERATIONS - REPAIR, REPAINTING,
REMODELING, YARDMEN, MAIDS, COCKS, ETC.
HOUSE FURNISHINGS ANC APPLIANCES
TOTAL EXPENDITURES FOR HOUSING

2,243.52*

FOOD
TOBACCO AND BEVERAGES
CLOTHING, LAUNDRY, CLEANING C PRESSING
PERSONAL CARE - HAIRCUTS, BFAUTY APPOINTMENTS,
COSMETICS, ETC.
ME0 IC AL CARE
RECREATION C VACATION - INCLUDE BOAT PAYMENTS
ECUCATICN AND READING
CAR PAYMENTS, GAS, OIL, REPAIRS C PUBLIC
TRANSPORTATION
GIFT ANC CCNTRIP.UT IONS
OTHER EXPENDITURES
TOTAL FCR

* TABS stands
Budget System.
pears above.

CONSUMPTION

for Tailored Automated
Sample budget sheet ap

Nature of Promotion

It was decided to introduce “TABS”
with a teaser campaign which broke
on February 17 in all media. The
brunt of the campaign began on March
1. All promotions were developed
well in advance. They included: 24sheet posters, radio and television ID’s
—spots—and one-minute commercials,
newspaper and magazine ads, state
ment enclosures, counter and bus
cards, lobby displays, etc.
The “proof is in the pudding,” of
course. Only time will tell what the
response to “TABS” will be. How
ever, banks which learned of the idea
in advance have already requested the
right to use it.
Questionnnaire for “Tabs”

The copy for the questionnaire in
cluded the following information:
• Total income after federal taxes.
• Age of family wage earner.
• Size of family.
TABS . . .

(Turn to page 72, please)

H a n kers Yon K n ow

\ Jeit F .

President
Denver United States National Bank
Denver, Colorado

“ We must provide an atmosphere of challenge . . .
where new ideas can flourish."1'
ITH rapid change all around
us, arising both from techno
logical advances and from new
functional ideas as to the role of com
mercial banking, Neil Roberts, presi
dent of the Denver United States Na
tional Bank, believes we are all going
to have to run very fast to keep up.
“Banking has always been people,”
comments Mr. Roberts, “and, in the
long run, the bank that has had the
best people has proved to be the best
bank. Today we need even more
careful recruitment of high intelli
gence and sound education for our
banks. We must provide an atmos
phere of challenge, an organization
where new ideas can flourish, and tan
gible encouragement to the highly mo
tivated. The bank that grows and
prospers will see change not as a
threat to the status quo, but as an
opportunity.”
The combination of long bank ex
perience and an acute awareness of
the pace at which the world moves
make Mr. Roberts’ direction of bank
ing operations an exciting challenge
to his associates. One of these asso
ciates comments that he possesses an
innate ability to analyze the compli
cated facets of a problem situation and
to dissect its essential elements quick
ly. As a result, the pace is fast.
Mr. Roberts believes strongly that
the vital ingredient for our present
and future business is the customer.
A service institution must test its serv
ices constantly in order to determine
its effectiveness in meeting customer
needs. This philosophy inspires ev
ery decision at Denver U. S. National.
Neil Roberts has earned the respect
and admiration of his co-workers both
as an individual and as an administra
tor. He is able to recognize and to
encourage the abilities and ideas of

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his associates, displaying a sincere in
terest in those who work with and
around him. Based upon experience,
one officer relates that if you come
with a problem, be sure you also come
with a recommendation — and more
often than not it will be used. How
ever, if the unpopular decision must
be made, the bank’s president has the
courage to make it.
Although born in Salem, Ore., Mr.
Roberts is considered a true native of
Colorado. Both his parents were born
in Colorado and all four grandparents
were early settlers of the Centennial
State.
After attending elementary schools
in Denver, Mr. Roberts entered the
University of Wyoming Secondary
School. Upon graduation he enrolled
at Dartmouth College in Hanover, N.
H., where he received his B.A. degree
in 1935. He then attended the Har
vard Graduate School of Business Ad
ministration receiving an MBA in 1937.
While in the East, Mr. Roberts met
his wife, Lee, also named Roberts.
Following their marriage in 1937, they
returned to Colorado, at which time
Mr. Roberts began to work for the
bank. They have a son, Stephen, and
a daughter, Susan, both about to grad
uate from college.
Neil Roberts began his banking ca
reer as a trainee and counts “experi
ence gained” from virtually every de
partment. His career was interrupted
by World War II (1944-45) when he
served as a lieutenant j.g. in the Sup
ply Corps of the U. S. Navy. He is
enthusiastic about his naval experi
ence, saying it gave him his first exec
utive opportunity.
He returned to the bank after the
war, and in January of 1947 was pro
moted to assistant vice president. The

following year he was made a vice
president, advancing to executive vice
president and a member of the board
of directors in 1954. In 1962 he was
elected to his present position as pres
ident of the Denver U. S. National
Bank.
Mr. Roberts has great interest and
faith in education. He is chairman of
the national enrollment committee of
Dartmouth College, on the board of
trustees for the Colorado School of
Banking, a member of the advisory
board of Amos Tuck School of Busi
ness Administration, on the advisory
panel of Denver Research Institute of
the University of Denver, and he has
just recently undertaken the chair
manship of the Design for Distinction
Program of Colorado Woman’s Col
lege.
Other activities include acting as
treasurer of the Colorado Public Ex
penditure Council and first vice presi
dent of the Colorado Bankers Associa
tion, having been elected to that post
last month. He has also held posi
tions in varied fields, having been pres
ident of the Lions Club of Denver,
president of the Cherry Hills Country
Club, and a member of the vestry of
St. John’s Episcopal Cathedral.
Mr. Roberts enjoys camping and
hiking and has spent many summer
vacations camping throughout the
country. At home, he regularly takes
a morning walk, finding it not only
good exercise but an excellent oppor
tunity to think over the day’s agenda.
In addition, he is an enthusiastic golf
er. Photography, now a hobby, was
once an enjoyable sideline business.
When he was getting a start in bank
ing, he operated a professional photo
graphic service in his spare time. Sam
ples of his work hang on the wall of
his office.— E n d .
N o r t h w e s t e r n Banker, June, 1965

f f o ff

Foreign Trade A Mee

ET me start by telling you that it is a frustrating
experience for a man to return to his own country
after living abroad for several years. He discovers
that his family and friends “march to the beat of a differ
ent drum,” if I may take a phrase from Henry Thoreau.
People are on guard when he expresses an opinion, or
even when he answers their questions. They seem to
feel he has been brainwashed by “the foreigners,” if his
words don’t agree with their prejudices.
Everyone, including me, gets pretty angry and bitter
when some barbarian in Asia or Africa burns one of our
embassies, while his half-civilized government is seeking
aid in Washington and voting against us at the U.N.
Why do such things happen, we ask?

What Kind of World Is It?

What kind of world is out there, east of New York and
west of San Francisco or south of Mexico City?
Well, here is the kind of world it is, and remember, that
to a manufacturer who has never exported, or had any
thing to do with people abroad, the world outside his
daily life begins and ends with his newspaper, radio
and TV.
Since commonplace things are rarely headlines, he be
lieves that unrest, violence, irresponsible behaviour, pov
erty and rebellion are the way of life in most of the world,
and that trying to do business with such people is risky,
or even hopeless.
Most Banks Need Expert Help

Yet a survey of the 10th Federal Reserve District that
I made last year shows that virtually every bank has
someone in its area needing help on export problems, and
it is up to that bank to know how much greater the inter
national markets sometimes are, than those within the
United States—and how simple a matter it can be to
reach them.
The survey proved that the potential in the Midwest
for doing business abroad hasn’t even been scratched.
Just let me read a few figures that will show the im
portance of foreign trade to our country, and its much
greater importance to the Middle West.
In 1960 the United States exported $20.5 billion worth
of goods, and imported $14.7 billion in return.
Midwest Foreign Trade Figures

Missouri, Kansas, Iowa and Nebraska, for example, acorth
w e s t e r n Banker, June, 1965
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Ky V IC T O R C. S T U D L E Y
Vice Presiden t
International Department
Commerce Trust Company
Kansas City, Missouri

Based on a t a l k d e liv e r e d b y th e au th o r b e fo r e th e
Bankers A sso cia ti on In s ta l lm e n t Lending C o n fe r e n c e .

Io w a

counted for $1,400,000,000 of these exports, and $573,000,000,000 worth of the imports.
Their excess of shipments over goods brought in was
$827,000,000.
In terms of people in these four states, each one sold
$131 worth of goods, and bought $54 worth in return.
For the country as a whole, each person sold only $114
worth of American products, and bought $81 in foreign
purchases. Thus, it is obvious that foreign trade is much
more important in the heart of America, than anywhere
else in the country.
How to Make Them Buy

How do we get people overseas to buy $5 billion more
than they sell us each year?
Well, it isn’t easy, and foreign aid is one way we do
it, along with a whole pyramid of subsidies on our agri
cultural products.
A British statesman once said of foreign trade that no
one can breathe out unless he also breathes in, which is
something we are learning with difficulty in this country
just now.
For, in addition to subsidies at home and foreign aid
abroad, we are using other techniques to get dollars into
the hands of people overseas who buy from us. The
trouble is that we are overdoing it by $3 billion a year.
What happens to the $3 billion? Part of it is traded
back to us for gold; part is loaned to others in the form of
Eurodollars, and the rest is used as a so-called “reserve
currency” ; that is, a base against which new lire, yen,
francs, guilders, etc., are printed as a kind of “fringe ben
efit” to the countries that own it.
Can’t Ignore Facts

If you would like to sweep these facts under the rug

M idwest Hanks

and forget the whole thing, let me point out that the rug
just isn't big enough to hide them.
People do not see the impact upon their own affairs of
what international trade will soon mean, and anyone who
can’t learn from history is going to repeat it. A child
born to one of your employees today will live in a popu
lation of 400,000,000 Americans by the time he is 45 years
old, and the figure could be as great as present-day China
within the child’s life expectancy.
Long before then, the ability of banks to handle foreign
trade must be greatly expanded.
Let me try to make this even clearer.
Clear Example

If the world’s population of 314 billion were compressed
to a thousand people, only 60 would be Americans. These
60 would receive half the total income of the world, and
own 15 times as much goods as the other 940 combined.
The Americans would use 12 times as much electricity;
22 times as much coal, and 50 times as much general
equipment as the remaining 940 persons.
Except for 200 others among the thousand, all the rest
would be ignorant, poor, hungry and sick.
Half of them would not be able to read or write.
Three hundred and three would be white, and the re
maining 697 would be non-whites.
The 60 Americans would have a life-expectancy of 70
years, while the rest would average less than 40.
This Is Our World

That is the world that lies east of New York and west
of San Francisco.
Those are the people who irritate us for not adopting
our system of government when we send political mis
sionaries out to convert them.
They are the ones we sometimes believe are plotting to
overthrow the world for the sake of power alone.
Actually, tonight’s supper dominates their thinking,
and everything else is a means to achieve this simple
end.
No one can lecture them into our way of life. For one
thing, there will be 316,000 more at breakfast tomorrow
than were here this morning, and there aren’t enough lec
turers just to cope with the newcomers every day.
Who will provide the teachers and schoolrooms; the doc
tors, nurses, housing and hospitals; the reservoirs and
other public utilities, all within the next 24 hours?

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Explosion of Trade Only Hope

Apart from controlling this population explosion at
once, the only hope for improving our world is through
an explosion of trade.
The world needs everything you grow and make, and
people want the things you produce. But the difference
between satisfying their needs and wants will require
self-discipline by them.
Africa cannot go from the Stone Age to motor cars in
one generation, although some of our American Indians
did, when they found themselves sitting on oil that we
wanted.
Much of the turmoil in so-called “awakening” countries
arises from incessant propaganda, deception and non
sense by irresponsible people.
There are no “awakening” countries.
Backward Nations Need Help

The backward nations have long since reached the limi
tations of their people for self-development at a rate to
keep up with our world, and progress for them will oc
cur only to the extent they are organized, led and sup
ported with perpetual help by western civilizations and
Japan.
Living here in the Middle West cannot insulate us any
longer from the rest of the world. Actually, it could pro
vide a perspective that people elsewhere do not have, for
they are in conflict with such problems every day.
Holland, for example, is one-fifth the size of Iowa, but
it exports up to 79 per cent of its Gross National Product,
while the United States is exporting 4 per cent of its
G.N.P. Furthermore, they handle their own banking for
all this. If the Dutch do not worry about getting paid,
what in the world are we afraid of in this country?
Banks Stimulate Foreign Trade

Banks are catalysts that make foreign trade possible,
but they don’t have to be in New York to accomplish it.
They are now, because they were there first, and also be
cause international banking depends in part upon fast
communications.
In the old days, speed of communication was often rep
resented by young men running through the streets of
Manhattan with invoices and bills-of-lading for the cap
tains of sailing vessels docked along the Hudson River.
Today, instant information is transmitted by bankwire
and ailmail throughout the world. But don’t misunderN o r t h w e s t e r n Banker, June, 1965

stand, much of it works because the eastern banks make
it possible to work.

tising agency that studied the matter for two years in
Latin America.

3 Ways to Reach Markets

Common Market

There are three ways for American companies to reach
overseas markets: by exporting to them; by licensing
manufacturers already there, or by setting up branch or
subsidiary plants of their own.
Furthermore, and despite my earlier comments about
some foreign customers, there are safeguards for U. S.
firms which protect them in whatever method they
choose. In effect, an agent of this country guarantees
the credit of customers abroad, so that foreign companies
can have their obligations insured by the U. S. Govern
ment.
Our international department at Commerce Trust Com
pany was called “ Information Central” by someone re
cently, because we provide a highly integrated operation
between 456 correspondent banks in 168 countries
throughout the world, and more than 1,400 banks that
have long been our correspondents and friends here in
the United States.

Six different nations in Europe, as everyone knows,
have joined in a political and economic union, within
the same generation that saw them fighting each other in
the most devastating war of history.
Out of this union of people with different languages,
different religions, different forms of government, differ
ent ethnic roots and different destinies, there has come
a so-called “third world force,” which is certain to influ
ence much of our policy hereafter.
Their common bond is a mutual need for trade and
defense, although the pressures that gave birth to the
organization were rooted in something much broader.
If 180,000,000 diverse people can make such progress,
why may some advance not take place in our country,
and especially here in the Middle West, with its 15 or 20
million Americans?
Benefitting from handouts we make to other countries
is no permanent solution, whether the handouts are food,
armaments, credit, or by subsidy.
Nor can anyone buy friends in this way. Stefan Rundt
says that you can’t even rent them.

Language Bander

One of our least-complicated jobs is the handling of
translations, which we can provide in 26 languages. I
mention this because 98 per cent of the letters sent to
smaller American companies in languages other than
English are never answered.
They are not even acknowledged.
Yet these letters are from customers who have looked
up specific manufacturers in this country from whom
they are trying to buy something.
Those figures are straight from the files of an adver

Banks a Symbol of Stability

People are not looking for security from the cradle to
the grave; they are only hoping for stability from one day
to the next.
Banks are a symbol of stability, and the trade which
they can make possible offers hope for what peace there
may be in our world of confusion and present tensions
today.— End.

Expands Foreign Interests

When was the last time you said . . .

“There must be
an easier way
to write bonds!“
There is . . . iv ith

H a wkeye* Security
HAWKEYE-SECURITY INSURANCE COMPANY • DES MOINES
MEMBER OF FINANCIAL GENERAL INSURANCE GROUP

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Federal Reserve Bank of St. Louis

Continental Illinois National Bank
and Trust Company said recently it
will purchase a 15 per cent interest in
Banca Privata Fhnanziaria, a commer
cial bank in Milan, Italy.
Continental said it will buy the in
terest through its Edge Act subsidiary,
Continental International Finance Cor
poration, from the holdings of Michele
Sindona, a leading Italian business
man. The purchase price was not dis
closed.
As a part of this transaction, Continental is also acquiring an interest in
the Banca di Messina, headquartered
in Messina, Sicily. It has five branches
in Sicily.

* j-

Illinois Bankers Election
J. Marvin Powers, president, Secu
rity Bank of Mount Vernon, was elect
ed president of the Illinois Bankers
Association, at the group’s 74th annual
convention last month in Chicago.
Mr. Powers succeeds John F. Mc
Carthy, president, Marquette National
Bank, Chicago. Dirk H. Groen, president, First National Bank and Trust
Company, Pekin, was named vice pres
ident. He had been second vice presi
dent.
Succeeding Mr. Groen as second vice
president is Harold J. Bacon, presi
dent, Home State Bank, Chrystal Lake.

Art McGowan just made his 28th Christmas Club payment
Now he’s taking out his first auto loan.
ifhristmasjlub.

CHRISTMAS
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^ / h rîs tm a s
-merriest way to save,/

C LU B A CORPORATION, NEW YORK CITY

•

SERVICE OFFICE: 109 LAKE GEORGE AVENUE, TICONDEROGA, NEW YORK

Sm all ila ali.s
(Continued from page 31)

It would be a means of offering an
N eed . . .opportunity
for the smaller banks

which lack audit and which lack ex
pertise,
to draw upon our experience,
supervisor’s? These are the questions
These regulations currently affect
we must consider.
larger institutions only. We feel, how to create a sound audit program.
We are not committed to this pro
There are two approaches which I ever, that with public acceptance of
would like to cite, which are under these standards, the tendency will be gram, but it is under careful study,
and we would welcome comments and
careful consideration by the Federal toward their use by all banks.
suggestions. At the present time we
Deposit Insurance Corporation at this
Advisory Service
are actually exposing selected person
time.
2. We are seriously studying anoth nel to bank audit instruction and ori
Uniform Accounting
er program at Federal Deposit Insur entation, and it is our intention to use
t. In the first place, we feel strong ance Corporation. This is the possi this pool of trained personnel to ex
ly that one eventful solution lies in bility of developing an advisory serv tend and intensify the audit phase of
the development of more uniform ac ice for the smaller banks which lack our examinations. They could become
counting procedures, and we have pub audit programs. Our approach here is available for this new program being
licly and privately urged the industry designed to assist banks in developing considered, if the decision is to move
ahead with it.
to assert leadership in developing such sound audit methods.
procedures.
This service, as we are considering
Challenges Need Leadership
The Securities Act Amendments of it, would lead to a program of field
These,
then, are the challenges to
1964 affects relatively few banks — auditors trained in bank audit tech
some 60. But regulations based on nique, and in teaching methods, who the banking industry, in development
that Act do require more uniform ac would be able to assist banks with a of better, more standardized, and more
counting procedures. For example, need and a demonstrated interest, in readily available auditing techniques
they require the use of accrual ac structuring a satisfactory audit pro throughout the total industry, large
counting whenever possible, separa gram. Varying degrees of assistance bank and small alike. No supervisor
tion of bond losses or gains from inter would be available, depending upon wants to do what is properly manage
est income, and other standardized the inherent skills and procedures pos ment’s function. But the development
of the economy, the complexity of
techniques.
sessed by the bank in question.
need and of bank services, the fast
growing pattern of today’s world, all
impose extra burdens on bankers ev
erywhere.
These properly require use
r . Big, sprawling, vigorous Texas has downtown area. John Kramer, an
of audit, and the day has come when
been served by our fast-growing 18-year DeLuxe veteran from
no bank in this country is too small to
Dallas plant since 1956. To relieve Dallas, is plant manager, aided by
concern itself with a proper audit pro
this plant, and to better serve the Nick Norcini, a 15-year production
gram.
banks in Southern Texas and the specialist from Paoli. An additional
There must be leadership in devel
Gulf Coast states, we are pleased 22 DeLuxe people have been
oping this program for smaller banks.
There may be a pressing need for new
to announce the opening of a new transferred from various other
thinking in the audit field, to develop
manufacturing plant in Houston. plants. They are young, experi
new techniques which are possible for
enced, and thoroughly familiar with
the smaller bank. The supervisory
Standing in the center of the rich the needs o f our customers, and
agencies are deeply dedicated to the
Gulf Coast oil fields, Houston is form the nucleus of a staff that has
philosophy that every bank must have
the biggest city in the Southwest. been further strengthened by a fine
some form of audit and some form of
The land for this first capital of the group o f folks from the Houston
direct verification.
Republic of Texas was purchased area.
I can pledge that in all such efforts
in 1836 for $1.00 an acre. It was
the supervisory agencies will as al
subdivided, streets were laid out, We welcome this newest addition
ways cooperate in the closest possible
and the town was named for the to our family of sixteen plants and
manner in developing lasting and
meaningful solutions, to enhance the
famed military hero o f Texas, extend our best wishes to all of
ability of all our banks and to pre
General Sam Houston. It has since the new people who have joined
serve this vital financial system and
grown to an area of over 150 square us. Since it is equipped with the
the
diverse economy it helps support.
best
check
manufacturing
facilities
miles, to become a booming sea
—End.
known
to
us,
we
think
in
a
very
port and an industrial and financial
short time this plant will match
center.
Bancorporation Secretary
the efficiency of our other operating
Roger D. Knight, Jr., president of
Our new plant is located at 6840 units. The welcome mat is out and
Denver U. S. Bancorporation, has an
Wynnwood Lane...in the Highland we invite you to visit with us any
nounced that Robert H. Shepler will
Industrial Park northwest of the time you are in the vicinity.
assume full-time staff responsibilities
for the Bancorporation as secretary
and treasurer.
Mr. Shepler, senior vice president
of Denver U. S. National Bank, will
D E L U X E C H E C K P R IN T E R S INC.
NORWALK CLIFTO N PAOLI RICHMOND SYRACUSE CLEVELAND D E T R O IT INDIANAPOLIS CHICAGO
continue to serve as secretary to the
KANSAS CITY ST . L O U IS ST . PA U L H O USTON DALLAS CHATSW ORTH SANTA CLARA PORTLAND
Denver U. S. board of directors, as
a member of the bank management
committee.

TWO FOR TEXAS

DigitizedNorthwestern
for FRASER Banker. June. 1965
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

THE BANKERS WHO NEVER GRADUATE
How their continuing educational program enables them to better serve business.

At Chemical New York, one of America’s oldest and largest
financial institutions, bankers are “students” specially trained
to serve business and banks all across America.
These are the men of the National Division who have been
nicknamed “the New York bankers with the hometown touch.”
To be able to serve you better—which is our key to more
business—we believe our men who call on you must be among
the most inform ed in banking today. We go to extraordinary
lengths to insure they are.
Our men are chosen from among the leading students in the
country’s universities and business schools. But that is only the

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Federal Reserve Bank of St. Louis

beginning of their professional education. Fifty times a year
seminars are held to discuss the valuable insights available
only to a 6-billion-dollar bank. And they average some 26,000
miles a year, working closely with local industry and our cor
respondent banks.
Continued training of our men to be the most skilled finan
cial consultants is one further way
we try to better serve business.
•
1
Chemical Bank New York Trust
J X © I X llC c i.I
Company, New York, N. Y. 10015. ' V a i i r V ^ f l | *
The bank that works hardest for you.
▼▼ M.CJl.
N o r t h w e s t e r n Banker, June, 1965

M a rq u ette**
Í am p!et es
G ARY

WOLLAN, assistant vice
president in charge of data proc
essing at Marquette National Bank of
Minneapolis, has completed a 13-day
counseling mission in Geneva, Switzer
land. His job was that of assisting a
small Swiss bank develop a bank auto
mation system which will, among oth
er things, prepare the bank for an in
flux of approximately 4,000 new ac
counts by the first of the year.
“The drama of the situation is
heightened by the fact that, while the
bank must prepare for 4,000 new ac
counts, it must reduce its staff by 5
per cent by July, 1965, to comply with
a new Swiss law,” Mr. Wollan re
ported. “A modern computer system
is the only answer,” he said.
Mr. Wollan arrived in Switzerland
to help the Overseas Development
Bank, which is owned by Swiss-based
Mutual Fund. All European fund
salesmen bank at the bank. In addi
tion, the bank will offer accounts to
customers in 136 countries served by
Mutual Fund salesmen.
In his primary role as a systems
designer, Mr. Wollan worked with a
system specialist from Manchester,
England, and both were under the di

SwisM ission
rection of an ex-civil engineer from
Massachusetts Institute of Technol
ogy.
Basic problems included: (1) an ab
sence of a clearing house in Swiss
banking, requiring a minimum of eight
float fields in the master file to ac
count for the collection period (from
the time of deposit until the bank re
ceives its funds); (2) the custom of
permitting 30-, 60- and 90-day sight
drafts to be credited immediately to
the customer’s account; (3) the neces
sity of six, rather than four, name
and address lines on the master file;
(4) the necessity of printing a state
ment including the check number—
no two customers are issued checks
with the same number sequence.
Mr. Wollan was intrigued by the
Swiss policy of paying one-half of one
per cent interest on demand deposits
over a six-month period when the bal
ance never falls below $500. In addi
tion, lines of credit are established per
mitting the customer to overdraw his
account to the amount of the line of
credit. This line costs the customer
one-fourth of one percent for the re
view of the line for a three-month pe
riod whether or not he uses the line.

G A R Y W O L L A N , assistant vice president
in charge o f electronic data processing for
Marquette National Bank, Minneapolis,
was recently invited to conduct a detailed
systems analysis for the Overseas Develop
ment Bank in Geneva, Switzerland.

POWER-FULL IOWA
A going, growing state. Both industrial and farm
incom e on the rise. In the thick o f it: investorowned Iow a Power . . . steadily expanding electric
and gas capacities to stay well ahead o f the
increasing power needs o f a vigorous econom y.
Write for annual report
IOWA POWER AND LIGHT COMPANY - DES MOINES, IOWA 50303

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

To use his line, he simply writes a
check, overdraws his account and be
gins paying 6 per cent interest on the
overdraft. Only if he exceeds his line
is he truly overdrawn.
“ It’s up to the machine to keep
track of when and how much he over
draws his account,” Mr. Wollan re
ports.
He states that the Swiss government
requires that when the bank pays in
terest to a customer, 27 per cent be
withheld and remitted directly to the
government. However, the bank is
SWISS MISSION . . .

(Turn to page 46, please)

How does
The First serve us
as a correspondent1
:
In the best way possible,
with men who work
exclusively with
correspondent bankers.

At The First, a group of bankers works
solely with correspondent banks.
You can’t get better correspondent banking
service anywhere! Our banker-to-banker
service is yours-full-time, any time!
Building with Chicago and the nation since 1863

The First National Bank o f Chicago

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Federal Reserve Bank of St. Louis

Chicago, Illinois • 60690
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

N o r th w e s t e r n

Banker, June, 1965

t'om p leto 1 4 -S to r y A itili/io n

N E W A D D ITIO N recently opened by Northern Trust Company.

T HE Northern Trust Company’s
new 14-story building addition—a
structure devoted exclusively to the
conduct of Northern Trust’s banking,
bond, and trust business—opened for
business last month in Chicago.
The new addition, which adjoins
The Northern Trust’s familiar sixstory building at the northwest cor
ner of LaSalle and Monroe Streets.

THE

has been designed to provide a sub
stantial number of new conveniences
for the bank’s customers, as well as
to consolidate Northern Trust staff
and operating units which have been
occupying leased space in nearby
buildings for many years.
The final moves of Northern Trust
personnel and departments into the
new addition were made over a

CENT

BARGAIN

OFFER

weekend. The o r ig in a l structure,
fronting on LaSalle Street, will now
undergo interior remodeling, a pro
gram scheduled to be completed by
early 1966. The bank’s main entrance
will continue to be at LaSalle and
Monroe Streets.
Erected at a cost of $20,000,000, the
new adclitioon is 14 stories high and
three floors below ground. To the
west of the building, opening on Mon
roe Street, The Northern Trust has
constructed a drive-in banking plaza
at which motorists will be served over
closed-circuit television equipment by
tellers located within the new addi
tion.
Of contemporary design, the new
addition has an exterior of pinkishgray Minnesota granite and matching
textured gray aluminum spandrels,
with windows recessed to provide a
light, airy atmosphere while preserv
ing privacy in the conduct of banking
business.
Within the building, the high-ceilinged, brightly-lighted main banking
floor is devoted to savings and check
ing services. The second floor is de
voted to the commercial and corre
spondent banking divisions, while the
executive offices and the Trust Depart
ment are located on the third floor.
Mortgage loan and personal loan facil
ities, along with the bank’s safe de
posit vaults, are situated on the lower
lobby—the first floor below street lev
el. The Bond Department is located
on the 10th floor of the new addition.
The building features a bank of ten
high-speed elevators, the most modern
air conditioning equipment and spe
cial thermostatic controls to provide
continuously-circulating fresh air at
comfortable temperatures, and large
thermopane windows which pivot in

PLAN

Makes it much easier for you to convert your accounts into buying their own checks.

o r tFRASER
h w e s t e r n B an ke r, June, 7965
DigitizedNfor
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Ask our salesman about this plan.

1201

S O U T H S I X T E E N T H STREET

OMAHA

TATES

8, N E B R A S K A

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

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Federal Reserve Bank of St. Louis

314, GA1-1362.

N o r th w e s t e r n Banker, June, 1965

44
their frames so that window washers
will not have to go outside of the
building.
Materials used in the interior dec
oration of the new structure include
selected marbles from Italy and Ver
mont and seven different kinds of fin
ishing woods. A special diffused light
ing system provides a g e n e ro u s
amount of light with minimum glare
on all floors.

New

r i m H ead

Heads Trade Group
Gerard E. Keidel, vice president,
American National Bank and Trust
Company of Chicago, has been elected
president of the Bankers Association
for Foreign Trade, at the group’s an
nual meeting held
in French Lick,
Ind.
Long active in
fo r e ig n banking
a n d commercial
circles, Mr. Kei
del becomes the
31st head of the
Association,
which
was
formed in 1921 by
G. E. K E ID E L
10 bankers in the
Great Lakes region to initiate direct
foreign banking facilities for their cli
ents, thus promoting the financial

RECENT CHANGE in leadership at
the Federal Deposit Insurance Cor
poration was marked by a reception
for the outgoing chairman, the Hon
orable Joseph W. Barr, left, given
by the new chairman, the Honorable
K. A. Randall. Mr. Barr has been
confirmed and sworn in as Under
secretary o f the Treasury after some
15 months as Federal Deposit Insur
ance Corporation chairman.
Mr.
Randall had been a director, before
the board of directors advanced him
to the chairmanship.

phase of the export and import trade
of the Middle West.

Urge Bank Bond Activity
The American Bankers Association
has urged Congress to enact a bill in
troduced by Representative St. Ger

GOOD

L IV IN G

MIRAMAR

"Where Wilshire Boulevard Meets the Sea"
Atop the Palisades overlooking the blue
Pacific • The Miramar features 400 guest
rooms, bungalows and suites in a tropical
garden setting • Ideal banquet and con
vention facilities • Superb cuisine •
Dancing nitely • Home of "THE TIKI-JO"
famous Polynesian Restaurant • Attend
ant parking
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for FRASER Banker, June, 1965
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Federal Reserve Bank of St. Louis

main (D-R.I.) which would allow na
tional banks to underwrite and deal
in revenue bonds issued by state and
local governments and certain obliga
tions of local public housing agencies.
Kenneth V. Zweiner, a member of
the association’s E co n o m ic Policy
Committee, pointed out that this meas
ure would also grant Federal Reserve
state member banks the same author
ity, where state law permits, because
they are subject to the same limita
tions with respect to underwriting and
dealing in investment securities as are
national banks.
Mr. Zweiner is also chairman of the
board of the Harris Trust and Savings
Bank of Chicago.

Add 13 Thorp Offices
A total of 13 new offices have been
established by Thorp Finance Corpo
ration during the past three months.
This expansion gives Thorp a total of
125 offices including 83 in Wisconsin,
23 in Iowa, 18 in Minnesota and one
in Missouri.
In Iowa, the company’s subsidiary,
Thorp Credit Inc., put offices into
operation at Charles City, Marshall
town, Muscatine, Mount Pleasant,
Newton, Oelwein, Oskaloosa, Perry,
Spencer, Storm Lake, Washington and
Webster City. In addition, another
Wisconsin branch was opened at Be
loit.
Thorp also has applications pending
before the Minnesota Commerce Com
mission for licenses to open additional
offices in that state.

New Wells Fargo Executive
H.
Stephen Chase, president, Wells
Fargo Bank, has announced the pro
motion of John R. Breeden to senior
vice president in
the co m m e rcia l
banking division
as a ssista n t to
Ralph H. Rebele,
e x e c u t iv e v ic e
president.
Mr. B reed en ,
associated w i t h
the bank sin ce
1946, h a s b e e n
most
recently vice
J. R. B R E E D E N
p r e s i d e n t in
charge of the Metropolitan division.
John S. Enright has been promoted
to vice president in charge of Wells
Fargo Bank’s Metropolitan division.

Renew ABA Position
Mr. Charls E. Walker, executive vice
president of The American Bankers
Association, has entered into a renew
al contract for a 10-year period with
the association.

Why does the president
of Kidder, Peabody

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Federal Reserve Bank of St. Louis

Ask him.
"Because more than half of American industry lies
within 500 miles of State and Madison.
"Mid-America is the largest, fastest growing, most dy
namic part of the country—and Chicago is its capital.
Here I can meet America's business movers on their
home ground, offer them direct, personal service.
"With the assistance of our competent staff, we are
able to give midwestern companies prompt and effi
cient service in developing financing plans tailored to
their particular requirements. Our clients need go no
further than our Loop office to solve their new capital
problems, large or small.
"On the other hand, no securities firm in America can
offer more comprehensive, sophisticated service. I can
always draw on skilled personnel in our 27 offices
coast-to-coast; our expert daily involvement with the
money market; our intimate knowledge of investment
policies of all important institutional investors; and our
firm's century of financial experience.
"Why do I operate out of Chicago? Because Kidder,
Peabody is a leader in the underwriting of new securi
ties issues and is pre-eminent in the field of private
placements.
"We intend to keep it that way."
For able, responsible financing help—with a friendly,
midwestern accent—we invite you to discuss the matter
with our president, Erwin A. Stuebner. He can make
the decisions that get results—fast.
All Experience
is an Arch to
Build Upon

1865-1965

Kidder, Peabody
S'Co.

Members New York, Midwest and American Stock Exchanges

33 South Clark Street, Chicago 3, Illinois 312 ANdover 3-7350
NEW Y O R K B O S T O N P H IL A D E L P H IA LO S A N G E LE S S A N F R A N C IS C O

N o r th w e s t e r n Banker, June, 19 6 5

M0raniatiaas a t M artian tju a ra n ty

Proof man!

T HREE changes in top-level posi
tions
Company
nounced.
Henry

at Morgan Guaranty Trust
of New York have been an
All took effect June 1.
C. Alexander will become
chairman of the
executive commit
tee. He will be
succeeded in his
p re se n t position
as ch a irm a n of
the b o a r d and
c h i e f executive
officer by Thomas
S. Gates, present
ly president. Mr.
Gates will be suc
H. C. A L E X A N D E R
ceed ed as presi
dent by John M. Meyer, Jr., presently
an executive vice president.
Mr. Alexander has headed Morgan
Guaranty since its formation in 1959
by a merger of J. P. Morgan & Com
pany Incorporated and Guaranty Trust
Company of New York. Before the
merger he was chairman of the Mor
gan bank.

T. S. GATES

Bob Hurter, La Salle Assist
ant Vice President, has a keen
understanding concerning the
handling of items. He has helped
m any La Salle correspondents
with their checks and balances.
Of course, y o u ’ll find B ob at

La Salle National Bank,
135 South La Salle Street, Chi
cago, Illinois 60690. His phone
num ber is S T a te 2-5200, area

J. M. M E Y E R , JR.

Mr. Gates, who has been president
of Morgan Guaranty since August,
1962, will assume the chairmanship a
little more than four years after join
ing the bank. He was elected chair
man of the executive committee in
April, 1961, after serving as Secretary
of Defense during the last year of the
Eisenhower administration. The de
fense post had capped an eight-year
period of Washington service, prior to
which he had been a partner in the in
vestment banking firm of Drexel &
Company, in Philadelphia.
Mr. Meyer was head of Morgan
Guaranty’s international banking divi
sion. He also is chairman of the
bank’s two “Edge Act” subsidiaries,
Morgan Guaranty International Bank
ing Corporation and Morgan Guaranty
International Finance Corporation.

code 312. Member F D IC . Com

Honor Wriglit Patman

plete Trust Services.

The world’s credit unions honored
Congressman Wright Patman (D.Tex.), 37-year veteran of the House,

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

with their highest recognition when
CUNA International presented him its
d is tin g u is h e d service award last
month.

Form Charter N. Y. Corp.
Crandall Melvin, chairman of The
Merchants National Bank & Trust
Company of Syracuse, and George A.
Murphy, chairman of Irving Trust
Company, New York, have announced
that the boards of directors of both in
stitutions have agreed to the forma
tion of a bank holding company to be
called Charter New York Corporation.
Under the terms agreed upon, Charter
New York Corporation will exchange
shares with stockholders of the two
banks on a one-to-one ratio for Irving
stock and a 1.5-to-one ratio for Mer
chants stock, based on shares out
standing after the scheduled payment
of a 2 per cent stock dividend by Irv
ing and a 5 per cent stock dividend by
Merchants.
The joint announcement stated that
Charter New York Corporation will
permit the joining together of inde
pendent banks through a holding com
pany which will provide a conduit for
the two-way flow of business and
financial relations between New York
City and central New York. This will
retain local autonomy for the constit
uent banking institutions.
The proposal is subject to the ap
proval of state and federal regulatory
authorities and to acceptance by stock
holders of both banks.

SWISS MISSION . . .
(Continued from page 40)
not obligated to tell the government
from whom it was collected.
“One of the blessings,” Mr. Wollan
says, “is the fact that the Swiss franc
and our dollar are both decimal sys
tems. This really helped our pro
gramming.”
Although, according to systems de
signer, checks are seldom used by the
Swiss, who prefer cash, a two-part
check was designed with a carbon
copy of the check permanently affixed
in the checkbook. No check register
is used as the checks are not returned.
Mr. Wollan concluded, “With con
version to automation scheduled for
June 1, we were really under pressure.
Thankfully, the programmers on the
job are the most competent I have
seen.”—End.

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

You can depend on
this Commerce Trust
man to help with any
petroleum problems

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

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

( o m m e r c e " [ru st ( o m p a n y
Member Federal Deposit Insurance Corporation
Correspondent Division
Commerce Tower—9th and Main, Kansas City, Missouri
N o r th w e s t e r n

Banker. June, 1965

Name íaIcolt Director
Russell R. Campbell, senior vice
president in charge of the Chicagoheadquartered central region of James
Talcott, Inc., has been elected to the
111-year-old firm’s
b oa rd of direc
tors.
A veteran of 32
years in the com
mercial financing
field, Mr. Camp
bell has been a
member of Tal
c o t t ’ s executive
management com
m ittee for the
R. R. C AM PB ELL
past five years.
He joined the firm in 1955 after serv
ing for 25 years in various executive
positions with General Electric Com
pany and its financing subsidiary, Gen
eral Electric Credit Corporation.

Available now or soon
In most E.M.C. states!

* S . M .
with
OWNED-A
ADDED

Joins Kansas City Bank
Marlin L. Koelling has joined the
real estate loan department of City
National Bank and Trust Company of
Kansas City. He comes to City Na
tional from the position of vice presi
dent of W. L. Brady Investments, Inc.,
of Kansas City.

"Special Multi-Peril Package

W orld

INCLUDING
• Optional Sec. II Comprehensive General Liability
rider; optional comprehensive auto coverage
• Optional Boiler Coverage
• Comprehensive Crime
For better volume, greater profits, sell S.M.P. with the same
truly multiple-line company that specializes in Workmen’s
Compensation. Over 50 years’ specialized commercial ex
perience. Decentralized branch offices coast to coast . . .
underwriters, field supervisors, claims men, payroll auditors,
risk improvement representatives . . . all help you sell and
serve your insureds. Write or call our Agency Department.

EMPLOYERS MUTUAL CASUALTY
Company
FIRE • CASUALTY • BONDS
HOME OFFICES: DES MOINES, IOWA
BRANCH

O FFICES:

C h a rlo tte ,

—-

C hica g o

—

D a lla s

—

D enver

Des M o in e s — Ja ckson , M iss. — K ansas C ity, Mo. —- L a n s in g — L ittle Rock,
A rk. —

M ilw a u ke e —

M in n e a p o lis —

Om aha —

S e a ttle — V a n cou ve r, B. C. — W ic h ita , Kan.

N o r t h w e s t e r n Banker, June,

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

1965

P h ila d e lp h ia —

P hoenix

l ime Chart

Manufacturers Hanover Trust Com
pany, New York, has distributed its
semi-annual “World Time Chart” indi
cating time differences in over 100
countries compared with New York
Daylight Saving Time.
The chart includes a map of time
zones in the continental United States,
Alaska and Hawaii, and a listing of
states and communities observing Day
light Saving Time.
Copies of the chart may be obtained
from the international division, Man
ufacturers Hanover Trust Company,
44 Wall Street, New York, N. Y. 10015.

Record Mosler Earnings
Record first quarter sales and earn
ings have been announced by The Mos
ler Safe Company in New York.
Consolidated net sales for the threemonth period ended March 31, 1965,
were $10,512,821 compared with $9,640,105 for the same period last year,
for an increase of 9.1 percent.
Consolidated net income for the pe
riod was $672,425 compared with $579,496 for the same period last year, for
an increase of 16 percent.
Earnings for the first quarter of
1965 were equivalent to $.37 per share
compared with $.32 per share for the
first quarter of 1964.

D E S T IN A

l:3
I\
!O
T

s w

A m a rtin i is s y m b o lic . I t rep resen ts g o o d
th in g s . . . lik e bu sin ess lu n ch es, m eetin g
frien d s, sp ecia l ce le b ra tio n s . . . a n d O zark
A ir L in e s ’ c o c k ta il flights.
S e rv in g c o c k ta ils in fligh t is ju s t a n ew sign
o f th e g ro w in g th a t ’ s b een goin g o n a t O zark.
W e ’ v e also a d d e d n ew se rv ice (n o w serv in g
58 im p o rta n t M id -A m e r ic a cities) . . . new
je t -p r o p a ircra ft . . . co n tin e n ta l b rea k fa sts
an d sn ack s . . . an d w e ’ v e in tr o d u c e d th e new
R e a d y - R e f tim e ta b le . N o t to m e n tio n
O z a r k ’ s n ew h a n g a r an d h e a d q u a rte rs
fa cilitie s in St. L ou is.

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

a l l o w

a n d

a n

o l i v e

a w

a y

G e ttin g y o u th ere on tim e, an d giv in g y o u
th e b est serv ice u n d er th e sun are o f p rim e
i m p o r t a n c e a t O z a r k . . . a lw a y s g e t t in g
b e tte r and b etter! I f y o u ’re a real g o -g e tte r,
ta k e y o u r n ex t M id w e s t trip a b o a rd O zark
. . . th e airline th a t’ s o n th e m o v e . . . ru n by
an d for g o-getters!

N o r th w e s t e r n Banker, June, 1965

D IR E C T O R S
DE W A L T H. AN K EN Y
Vice President
Theo. Hamm Brewing Company
CHARLES H. BELL
Chairman of the Board
General Mills, Inc.
BENTON J. CASE
Director
The Crosby Company
GEORGE B. CLIFFORD, JR.
JOHN H. DANIELS
President
Archer Daniels Midland Company
DONALD C. D AYTO N
Chairman of the Board
The Dayton Company
STEPHEN P. DUFFY
President
Our Own Hardware Company
ALBERT G. EGERMAYER
Senior Vice President
Cargill, Inc.
ROBERT FAEGRE
President
Boise Cascade Corporation
B. C. GAMBLE
Chairman of the Board
Gamble-Skogmo, Inc.
PAUL S. GEROT
President
The Pillsbury Company
PHILIP B. HARRIS
Senior Vice President
F. PEAVEY HEFFELFINGER
Chairman of the Board
Peavey Company
ALLEN S. KING
Chairman of the Board
and Chief Executive Officer
Northern States Power Company
GOODRICH LOW RY
President
Northwest Bancorporation
JOHN A. MOORHEAD
President
JOHN S. PILLSBURY, JR.
President
Northwestern National
Life Insurance Company
SAM UEL H. ROGERS
Senior Vice President and
Executive Trust Officer
HENRY T. RUTLEDGE
Executive Vice President
H. P. SKOGLUND
Chairman of the Board
North American Life and
Casualty Company
LUCIAN S. STRONG
Chairman of the Board
The Strong Scott Mfg. Company
HAROLD H. TEARSE
President
Searle Grain Company
JAMES A. W ATSO N
President
Red Owl Stores, Inc.
ALFRED M. WILSON
Executive Vice President
Honeywell, Inc.
O. MEREDITH WILSON
President
University of Minnesota
JOHN S. PILLSBURY
Director Emeritus

STATEMENT OF

CONDITION
APRIL 26, 1965

L IA B IL IT IE S
R E SO U RC ES
Capital stock ...........................................$ 15,000,000.00
Cash and due from banks ................. $177,907,959.78
Surplus ...................................................... 25,000,000.00
U. S. governm ent obligations .......... 97,921,132.82
14,637,644.02
Undivided profits ....................................
Other bonds & securities ................. 49,335,867.61
Reserve fo r possible
Loans & discounts .............................. 370,467,071.56
future loan losses ..............................
6,555,756.82
Reserve fo r interest, taxes, etc.........
3,638,772.71
C ustom ers’ liability on acceptances
9,633,118.24
Incom e collected but not earned.....
5,068,213.35
Incom e earned but not collected ......
1,499,296.19
Letters o f credit and acceptances___
9,633,118.24
Band premises, furniture
Federal funds purchased ................... 27,500,000.00
& fixtures ...........................................
10,478,595.96
Bills payable ...............
25,000,000.00
............................................................ 1,697,674.30
Other resources
D eposits ...................................................... 586,907,211.32
Total Liabilities ........................... $718,940,716.46

Total Resources ........................... $718,940,716.46

NORTHWESTERN

NATIONAL

M A R Q U E T T E A V E N U E , S IX T H T O S E V E N T H

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STREETS

•

BANK

M EM BER

MINNEAPOLIS

F E D E R A L D E P O S IT IN S U R A N C E

C O R P O R A T IO N .

G. A. UGGEN

K. A. W A L E S

D. H. GR EG ER SO N

J. D. C H ISH O LM

P. S. N A D L E R

Full Program, Outstanding Speakers—

M in n esa ta S p ea k ers M a r k "iH a m on d J u bilee **
PPROXIMATELY 2,000 delegates are expected for
the 75th Annual Convention of the Minnesota
Bankers Association. The “Diamond Jubilee” con
vention will be officially called to order Tuesday morning,
July 15, by President Glenn A. Uggen, president of the
Peoples State Bank, Wells.
Kenneth A. Wales is executive secretary of the M.B.A.
He reports that the four speaking programs on June 15
and 16 will feature several nationally-prominent person
alities as well as a heavy schedule of convention busi
ness and election of officers.
The climaxing convention event will be the “Diamond
Jubilee Extravaganza” with a social hour, banquet and
outstanding entertainment at the Prom Center in St.
Paul, Wednesday evening, June 16.
The complete program for the three-day convention is
as follows:

“The Secret Five to Stay Alive”—Tennyson Guyer,
Findlay, Ohio.
4:15 Announcements and Recess.
6:00 First Night Party—Continental and Casino Rooms,
Hotel Saint Paul.
Buffet Dinner and Entertainment.
Close Registrations for Day.
Wednesday, June 16

A.M.
8:00
9:30

Monday, June 14

A.M.
8:00 Annual Men’s Golf Tournament — Midland Hills
Country Club. Breakfast and Luncheon Available
at the club.
Tuesday, June 15

A.M.
8:00 Registration—Lobby, Hotel Saint Paul.
9:30 Call to Order—Continental Room, Hotel Saint Paul.
Presentation of Colors.
Report of the Resolutions Committee — W. D.
Schroeder, Chairman; Cashier, Farmers State Bank,
Mountain Lake.
Report of Nominating Committee—Robert G. Lexvoid, Chairman; Executive Vice President, Metro
politan Airport State Bank, Minneapolis.
Welcome—Honorable Karl Rolvaag, Governor of
Minnesota.
Report of the Executive Secretary — Kenneth A.
Wales.
M.B.A. President’s Address—Glenn A. Uggen.
“The Happiest People in the World”—Dick Jackman, Boston, Mass.
11:30 Announcements and Recess.
Pioneer and Past Presidents’ Club Reception —
Queens Room.
Luncheon—Casino Room.
Minnesota Club, Central States Graduate School of
Banking Reception and Luncheon—Casino Room.
P.M.
2:00 Call to Order—President Glenn A. Uggen.
Address — Honorable Walter Mondale, United
States Senator from Minnesota.
Remarks—S. J. Kryzsko, Chairman, A.I.B. Savings
Bond Committee; President, Winona National and
Savings Bank.

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12:00

Registration—Lobby, Hotel Saint Paul.
Call to Order—President Glenn A. Uggen.
Greetings—Honorable George Vavoulis, Mayor of
St. Paul.
Adoption of Resolutions.
Election of Officers.
A.B.A. Meeting and Election—Paul W. Gandrud,
A.B.A. State Vice President; President, Swift Coun
ty Bank, Benson.
Address—Reno Odlin, President, The American
Bankers Association; Chairman, Puget Sound Na
tional Bank, Tacoma, Wash.
Ladies’ Diamond Jubilee Luncheon—Lowry Hotel
Ballroom.
Annual Men’s Luncheon—Continental Room, Hotel
Saint Paul.
Awarding of Golf Prizes.
Installation of District Officers.
“Nothing to Fear But Ourselves”—Merrill Mueller,
NBC News Commentator, New York City.

P.M.
2:00

Call to Order—President Glen A. Uggen.
“The Outlook for Banking”—Dr. Paul S. Nadler,
Associate Professor of Finance, New York Univer
sity, New York City.
“Banking in Transition” — Hugh D. Galusha, Jr.,
President, Federal Reserve Bank of Minneapolis.
Remarks — John D. Chisholm, Commissioner of
Banks, State of Minnesota.
“The World of the Uncommon Man” — Heartsill
Wilson, Detroit, Mich.
4:15 Announcements and Adjournment.
P.M.
5:00-5:30 Registration—The Prom Center.
5:30-6:45—Social Hour—Arizona Room, The Prom Cen
ter.
7:00 Annual Banquet—Ballroom, The Prom Center.
Invocation—Reverend Paul F. Obenauf, Wooddale
Lutheran Church, St. Louis Park, Minn.
Introduction and Installation of New Officers.
Diamond Jubilee Extravaganza — Entertainment
Followed by Dancing to Jules Herman and his Or
chestra.
N o r t h w e s t e r n Banker, June,

1965

■

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■

- .
WM,

T w i n C it y N e w s

lr
liü lilV lll
5*"*f»»*g«lsl
ORE than 2,000 Minneapolis bank
ers went to the polls recently for
the Minneapolis chapter of the Ameri
can Institute of Banking. James And
erson, assistant secretary in the trust
department of the First National Bank
of Mi nneapol i s,
was el ec t ed the
new chapter pres
ident. The Min
n ea p olis chapter
of the A.I.B. is
one of the largest
in the nation with
a membership of
3,051 from 43 lo
cal b a n k i n g of
fices.
J. L. A N D E R SO N
O t h e r officers
elected included Fritz Edmunds, as
sistant cashier and loan officer, Rich
field Bank and Trust, first vice presi
dent; Janies Treanor, assistant cashier,
Midland National Bank, second vice
president, and James Paradise, assist
ant cashier, Northwestern National
Bank, treasurer.

Jerry Nikituk, ass i s t ant cashier,
First Grand Avenue State Bank, was
recently elected president of the St.
Paul chapter of the A.I.B. Other St.
Paul officers include the following:
Raymond E. Schlemmer, cashier,
Farmers Terminal State Bank, New
port, first vice president; Bernard G.
Borash, American National Bank, sec
ond vice president, and George J.
Boldt, assistant vice president, First
Merchants State Bank, treasurer.
Women’s chairman is Ruth LaFollette and secretary is Alice E. Kozlowski. Both are associated with First
National Bank.
* * *
Sixth District officers of the Nation
al Association for Bank Audit, Control
and Operation, met the national presi
dent-elect, Merle V. Stone, president,
Downtown State Bank, St. Paul, at a
recent meeting in Minneapolis.
Mr. Stone conferred with chapter
leaders from five upper midwest states
at the Hotel Leamington. The group
N ofor
r t hFRASER
w e s t e r n Banker, June, 7965
Digitized
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Federal Reserve Bank of St. Louis

heard William D. Anderson and John
P. McGrath, both of the membership
d i v i s i o n of NAB AC headquarters,
Parkridge, 111., discuss chapter admin
istration. Robert G. Bayer, Milwau
kee, sixth district director, and A. H.
Stellner, president, State Bank of Cy
rus, Minn., and Minnesota director, at
tended the meeting.
* t *
According to a plan being devised
by Thomas K. Scallen, owner of Finan
cial Underwriters, Inc., bankers will
soon find a new source of capital in a
new company—Bankers Capital Cor
poration, a wholly-owned subsidiary
of Financial Underwriters.
Mr. Scallen, a 40-year-old banker, at
torney and small business investment
man, plans to fit Bankers Capital into
the financial “department store” pack
age which he intends to make of Fi
nancial Underwriters.
Mr. Scallen is selling 640,000 shares
of common stock in the company at
$2.25 per share. (See Lake City item
in Minnesota News section.) Proceeds
will be used to reduce long-term debt
incurred when shares in the Lake City
State Bank were purchased and to ac
quire additional companies which will
fit into Financial Underwriters.
* * *
Thomas S. Kleppe, former president
of Gold Seal Company, former mayor
of Bismarck, N. D., and Republican
candidate for the U. S. Senate in North
Dakota last year, has been elected a
vice president and director of J. M.
Dain & Company, Minneapolis invest
ment banking firm.
* * *
Gerald J. Frankseu has been named
vice president of the North Central
Financial Planning Corporation, ac
cording to Theodore Sanborn, presi
dent. A wholly-owned subsidiary of
The North Central Company, the Cor
poration operates a national sales force
which sells Wall Street investment
programs in conjunction with life and
hospitalization insurance.
* * *
The American National Bank of St.
Paul, the state’s largest independent

bank, has changed its name to The
American National Bank and Trust
Company, effective June 1, according
to John F. Nash, president.
A syndicate headed by the bank and
including, Bacon, Whipple of Chicago,
Stern Brothers of Kansas City and E.
J. Prescott & Company, Minneapolis,
was the successful bidder on close bid
ding of an $870,000 issue of Brown
County, Minn. The net interest rate
on the bid was 3.02 per cent. The
bonds mature 1966 through 1980 and
are being re-offered at yields of 2.35
per cent to 3.05 per cent.
*
*
Carl R. Pohlad, president, has an
nounced the appointment of Marie DeYaney to assist
ant c a s h i e r in
c har g e of book
keeping and cen
tral file d ep a rt
m e n t s at M a r
quet t e National
Bank, Minneapo
lis. A s s o c i a t e d
a t e d w i t h the
bank since 1942,
the new assistant
M. D E V A N E Y
cashier has held
supervisory jobs within both depart
ments. A member of the bank’s oper
ations committee, she is vice president
of Trail Blazers, the senior bank em
ployee organization.
* >t= *
First Bank Stock Corporation’s first
quarter earnings were at an all-time
record of $5,180,927, the highest for
any quarter in the corporation’s his
tory. Compared to consolidated net
operating earnings of $4,597,579 for
the first quarter of 1964, they repre
sented a gain of approximately 13 per
cent.
* * *
Northwest Bancorporation declared
a regular quarterly dividend of $.37%
per share on its outstanding common
stock, according to a recent announce
ment made by the board of directors.
Consolidated net earnings were $4,826,867, a record high for the first

The First in St. Paul
welcomes the MBA "Diamond
Jubilee” Convention

R eno B. O d lin , P re s id e n t of th e A m e ric a n B a n k e rs ’ A ssociation and C h a irm a n o f
th e B oard, P ug et Sound N a tio n a l B an k o f T a c o m a , W a s h in g to n .

. . . and its guest of honor,
Reno B. Odlin
The First National Bank o f St. Paul is Delighted that the
M B A “ Diamond Jubilee'’ Convention is being held in its
hometown, Minnesota’s Capital City, at the Hotel St. Paul
June 14-16. W e ’re equally delighted that Mr. R eno B. Odlin,
President o f the A B A and Chairman o f the Board, Puget
Sound National Bank o f Tacoma, will be an honored guest
and featured speaker. W e congratulate the M in n esota
Bankers’ Association on its Diamond Jubilee— for 75 years
dedicated to the advancement o f the banking profession.
W e are looking forward to seeing Mr. Odlin and the other
dignitaries on the program, as well as all our other banking
friends.
Also, we look forw ard to seeing our other banking friends at the Wisconsin Bankers’ convention in M ilw a u ke e,
and at the M ontana B ankers’ convention at Jackson Hole, W yom ing, later In June.

First National Bank of Saint Paul
DIVISION V—B AN KS AND BANKERS Wallace L. Boss, Donald W. Buckman, David A. Shern, Vice Presidents . . . Roger Cunningham,
James T. Gowan, Laurence R. Kennedy, Henry N. Snyder, Richard C. Swanberg, Assistant Cashiers . . . John F. Mullen, John D. Turner,
John M. Wooldridge III, Bond Advisory Specialists . . . Robert F. Donlan, Thomas T. Dwight, Roland W. Hohman, Trust Advisory Specialists

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N o r th w e s t e r n Banker, June, 1965

Minnesota News
Miss Betty Ann Malcolm, assistant
cashier, Stock Yards National Bank of
South St. Paul, has been installed as
president of the Pilot Club of St. Paul,
one of the five civic and service or
ganizations for executive business and
professional women.

quarter and a gain of 13.6 per cent
from the $4,249,509 reported for the
first three months of 1964.
* * *
Marcus (). Sather, assistant cashier
and a veteran of more than 47 years
service with the Federal Reserve
Bank ofMinneapolis, recently took
early retirement. He began his ca
reer with the bank as a messenger in
October, 1917.
* * *
l)r. Oscar A. Anderson, president of
Augsburg College, has been elected a
director of the Fourth Northwestern
National Bank of Minneapolis, accord
ing to Wendell T. Olson, president of
the bank.

(jre e h n c ^ á

“The Minnesota Story,” the first his
torical documentary film based on the
state’s wealth of natural resources and
their development, is a new feature
at the Minnesota Pavilion during the
second season of the New York
World’s Fair.
The half-hour color film was pro
duced, with the cooperation of the
Minnesota Historical Society, by Farm-

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ers & Merchants Savings Bank of Min
neapolis and was released in October,
1964, to coincide with the bank’s 90th
anniversary.
* * *
Robert E. Macgreger, 85, former sen
ior vice president of Northwestern
National Bank and a resident of Min
neapolis for 80 years, died recently.
Mr. Macgregor, who was born in Can
ada, retired from the bank as senior
vice president in 1944 and, until 1947,
was president of Investors Diversified
Services.
*
*
The 15 Northwestern banks report
that free knothole tickets are again
available this year for youngsters,
through age 13, for Twins games. The
first Knothole game was June 5. The
next will be June 26. Tickets are
available from the N o r t h we s t e r n
banks. Adults, who will be admitted
on general admission tickets, may ar
range to pick up free Knothole tickets
at the banks.
The Kokanee salmon, a new sport
fish in Minnesota waters, is featured
in the 10th annual edition of the
Northwestern Banks Family Fishing
Guide presently av ai l abl e f ree of
charge at all Northwestern Banks in
the Minneapolis area.
* * *
Leonard F. Romberg, vice president,
Northwestern National Bank of Min
neapolis, has been elected secretarytreasurer-manager of the Minneapolis
Clearing House Association, accord
ing to the organization’s head, Gordon
Murray, president of the First Nation
al Bank of Minneapolis.
Mr. Ramberg succeeds Charles F.
Corchran, vice president and cashier,
First National Bank of Minneapolis,
in the post.
* * *
The First Grand Avenue State Bank
of St. Paul has received authorization
to increase the amount of its capital
stock from $350,000 to $525,000, by
stock dividend.

New Bank President
The resignation of Robert L. Seibert,
president of the Rochester State Bank
since 1963, and the election of Roches
ter attorney Richard A. Plunkett as
his successor, were announced recent
ly by the bank’s board of directors.

STOCK YARDS NATIONAL DANK
South Saint Paul, Minnesota
A F F IL IA T E D W I T H
MEMB ER

FEDERAL

N o r th w e s t e r n Banker. June,

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1965

N O R TH W E ST B A N C O R PO R A T IO N

D E PO S IT

INSURANCE

C O R P O R A T IO N

Begin Remodeling
Work began recently on a new addi
tion to the State Bank in Eden Valley.
The concrete block addition will make
possible two new private offices, a
completely new bookkeeping area, en
largement of the bank’s vault and two
private booths for safe deposit box
holders.

M en, Money and Management
and

W orking and planning together, this

Bankers Division is one of our most

team can guide you in all of the

intensive and important services.

im p ortan t decisions your bank is

Staffed by seasoned specialists, it has

making.

the backing of a score of “ M en fr o m

plete “ Full Service Banking” call “ T he

A t

the Am erican our Banks

th e A m e r i c a n ”

whose forte is com*

N ext time you need com

M a n fr o m

th e A m e r i c a n ”

he’ ll be

happy to help you.

plete financial planning.
Phone 2 2 2 -6 6 6 6

Area Code 612

W E’LL SEE YOU AT THE MINNESOTA CONVENTION HERE IN ST. PAUL AT
THE HOTEL ST. PAUL, JUNE 14-16, AND AT THE MONTANA CONVENTION
AT JACKSON LAKE LODGE, MORAN, WYOMING, JUNE 24-26.

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AMERICAN NATIONAL
BANK OF SAINT PAUL
SEVENTH

AND

ROBERT

• ST.

PAUL

1, M I N N E S O T A

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

N o r th w e s t e r n Banker, June, 1965

Minnesota News

George LaMonte & Son: Robert P.
You
W ill Suo Thom tit th e 7.1th O’Connor,
sales representative.
Lawrence Warehouse Company:
Annual
31 im iosota C onvention
Henry Rhame, assistant vice presi

T HE following metropolitan bank

New York
Chase Manhattan Bank: Robert K.

ers, service and equipment firms
have indicated they will be attending
the Minnesota Bankers Association’s
annual convention in St. Paul, June
14-16:

Schell, vice president; Alden K. Small
and Robert W. Yates, assistant vice
presidents.

Chicago
American National Bank & Trust
Company: Roy West, assistant vice

retary.

president, and Bob Walcott, represent
ative.
Continental Illinois National Bank
& Trust: J. P. Johnson, vice president;

C. W. Battey, second vice president,
and Paul Jonescue, assistant cashier.
First National Bank: William T.
Dwyer, vice president; Nevin G. Bow
ser, assistant vice president; Raymond
Y. Dieball and Clarence E. Cross, Jr.,
assistant cashiers, and Edward Means.
Harris Trust & Savings Bank: Doug
las S. Seator, vice president, and Wil
liam H. Howell, assistant cashier.
Northern Trust Company: Robert
P. Kline, vice president, and John N.
Fix, divisional assistant.
Los Angeles
Security-First National Bank: James

C. Barrett, Jr., vice president.
Minneapolis
National Bank:

George S.
Henry and Robert W. Beaupre, vice
presidents; R, O. Weyrauch and Ray
mond H. Johnson, assistant vice presi
dents; Ed L. Kalafat, D. G. Wachholz,
M. Y. Rosholt and Fred Haw, assistant
cashiers, and Robert Carlson, William
McDonald, R. F. Carlson and James P.
Sicora, representatives.
Marquette National Bank: Otto H.
Preus, George S. Coonrod and R. W.
Crouley, vice presidents; Avery Fick,
assistant vice president, and Stewart
L. Stotesbery, representative.
Midland National Bank: Douglas M.
Johnson, vice president, and John W.
Ordos and Jack W. Weber, assistant
cashiers.
First

Chemical Bank New York Trust
Company: R. G. Morse, assistant sec
First National City Bank: Philip
Conway, vice president, and Robert
C. Paradise, assistant vice president.
Irving Trust Company: Donald C.
Jackson, vice president.

DigitizedNfor
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o r th
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Federal Reserve Bank of St. Louis

Mosier Safe Company: Chris Martin,

Minneapolis.
National Fidelity Life Insurance
Company: J. P. Górecki and Mike

Meichsner.
National Reserve Life: A1 Smith
and Les Lloyd, general agents, Boice
Hodges and Stuart Perry, district
managers.
North Central Life Insurance Com
pany: Bob Stassens, Bill Stohr, Dick

Morgan Guaranty Trust Company:

Brooks, Ray Coty and Will Rogers.
Recordak Corporation: Robert Danielsen and Wm. H. Rose.
St. Paul Insurance Companies: Leon
ard R. Moeller, assistant secretary,
and Elwood E. Linder, special agent.

David L. Hopkins, Jr., vice president,
and Richard C. Starratt.

St. Paul Terminal Warehouse Com
pany: R. C. Schall, vice president, and

Manufacturers Hanover Trust Com
pany: Carl Carlson and John King, as

sistant vice presidents.

Phoenix
Valley National Bank: Webb Todd,

assistant vice president.
Bank Equipment and Other Firms
Bankers Service Corporation: Henry

H. Byers, president; Myron E. Karsten,
executive vice president, and Norman
M. Postles, associate, Des Moines.
Diebold, Inc.: Lee J. Sutton, region
al manager; Ralph M. Kelley, assistant
regional manager; Tom E. Jacobs,
Paul Keller and Alvin G. Schlegel, rep
resentatives.

IfO#«or M ed a l

Robert P. Larkin.

Heads Aid Chapter
Glenn Thompson, assistant cashier
at the First National Bank of Man
kato, has been elected the 1965-1966
president of the South Central Min
nesota Chapter of the American In
stitute of Banking.

Named President
Loren W. Hamre, 32, vice president
of Northwestern State Bank, Ortonville, has been elected president of the
Silver Bay State Bank.

President at Grafton
A. M. Severson, formerly vice presi
dent of the First National Bank, Moor
head, has accepted the position of pres
ident of the Grafton National Bank in
northeastern North Dakota.

Winona Bank Moves
The First National Bank of Winona
last month opened for business in its
new quarters.

Named New Cashier

National City Bank of Minneapolis:

Selmer L. Jerpbak, president; C. Bern
ard Jacobs, executive vice president;
Gerald L. Bryan, vice president, and
Patrick W. Colbert, Jr., assistant cash
ier.
Northwestern National Bank: Philip
B. Harris, senior vice president; Keith
M. Barnett, C. Paul Lindholm and Rob
ert G. Ziemer, vice presidents; Donald
M. Anderson and Paul B. Damkroger,
assistant vice presidents; Eugene N.
Axness, Paul E. Koch and John John
son, assistant cashiers; Robert E. Dahl,
credit consultant, and Gerald T. Tovsen, computer consultant.

dent.

FIRST N A T IO N A L B A N K of Minneapolis
has added to its collection o f awards and
trophies a second George Washington
Honor Medal from the Freedoms Founda
tion, Yalley Forge, Pa. The bank was
cited for the excellence o f its fourth an
nual Economic Conference for Young
Adults held last year. Curtiss C. Coleman,
vice president, is pictured with the new
award. The bank also won a Foundation
medal in 1956 for its school-oriented econ
omics program.

Frank J. Schugel, executive vice
president of the State Bank of New
Ulm, announced last month the ap
pointment of Raymond E. Swanson as
cashier and the advancement of Don
ald W. Palmer from cashier to assist
ant vice president.

Lobby Display
First National Bank, Moose Lake,
recently featured a lobby display of
products manufactured by local indus
tries. Included in the display were
wrought iron items, ceramic tiles, pot
tery and candies.

we
eat it

The opportunity to meet with you at the
Minnesota-M ontana convention is our dish.
W e ’ll be there in force— each of us with high

up!

hopes o f visiting, getting to know you better—
even helping out on correspondent banking
matters if you choose to talk business.

THE MARQUETTE NATIONAL BANK
OF MINNEAPOLIS

•

SEVENTH A T MARQUETTE

•

FEDERAL 3-5411

Member Federal Deposit Insurance Corporation
C a r l Pohlad, President
C O R R ESPO N D EN T

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BANK

D EPARTM EN T:
A v e ry

O tto

Preus, V ice P resid ent; R. W . (B ill) C ro u le y , V ice P resid ent;

Fiele, A ssistan t V ice

P resid ent;

Stew art

Stotesbery,

R ep resen tative.

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

Minnesota News

Open H ou se a t M a rsh a ll

alyst for Northwest Bancorporation,
Minneapolis, has been named assistant
cashier of the Security National Bank
and Trust Company, Faribault.

Boost Capital
Citizens State Bank of Eagle Bend
has been authorized to increase the
amount of its capital stock from $25,000 to $50,000 by stock dividend.

Marks 4 0 Years
C.
R. Crever, chairman and presi
dent of the First State Bank, St. Jo
seph, last month marked his 40th an
niversary in the banking profession.
He began his career as a teller in
Bertha, Minn.

Bank Marks 65 Years
N E W M A R SH A L L B A N K — Open house was held last month at the First National
Bank of Marshall, Minnesota, according to John T. Suedbeck, president. The two-story
bank contains 10 teller windows located in a semi-circle around the two-story curved
wall. The second floor is a mezzanine which overlooks a fountain and rock pool. The
new building also offers a two-lane drive-in facility.

Celebrates 5 0 Years
In Clara City Bank

Neitz Heads Bank

Eugene R. Neitz, vice president of
B.
A. Behrends, president of the the the Sterling State Bank, Austin,
has been named executive vice presi
Clara City State Bank, last month
celebrated his 50th year in the same dent for the Owatonna State Bank,
Owatonna, succeeding Gerald Bolden,
bank. The occasion was marked with
an open house, in his honor, at the who resigned to become managing of
ficer of the Rochester State Bank.
bank.
Clen Malecha, manager of an Owa
tonna finance company, will join Ster
Teller’ s Name
ling State Bank as installment loan
A teller in the American National
officer.
Bank, Little Falls, has a name to suit
his occupation. The teller, John Yourczek, pronounces his last name “your- Capital Increase
An amendment has been authorized
check.”
increasing the amount of capital stock
from $25,000 to $50,000, by stock divi
Sells Bank Stock
dend, at the State Bank of Vernon
E. A. Schiro, Fairfax, last month dis Center.
posed of his holdings in the Citizens
State Bank at Gibbon. New owner of
Named Assistant Cashier
the financial institution is Dennis E.
William M. Wise, former credit anAlbertson, Stewart, who recently sold
his interests in the First National
Bank at Kilkenny.

Charter Denied
Farmington’s proposed new state
bank was denied a charter recently by
the Commerce Department Securities
Division on the grounds that the ap
plicants failed to establish the exist
ence of reasonable public demand for
such a bank.

Accepts New Post
Ray Kalow, vice president and cash
ier of the Farmers State Bank of
Nerstrand for the past 16 years, has
accepted a position as vice president
and cashier of the Lake City State
Bank, Lake City.
o r th
w e s t e r n Banker, June, 1965
DigitizedNfor
FRASER
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Federal Reserve Bank of St. Louis

The First National Bank of Wilmont recently began its 65th year of
operation. Radio Station WCCO noted
the anniversary date on the station’s
regular Tuesday morning Bank Pro
gram.

Bank Manager
Don Peterson, a member of the staff
of the Stewartville First National
Bank since 1962, has been named man
ager of the Medford State Bank, Med
ford.

Named Vice President
Carl W. Biereis, president of the
Grafton, N. D., National Bank, has
been named executive vice president
of the Austin State Bank, according
to A. H. Haakenson, president of the
Austin bank.
Both banks are affiliated with the
Northwest Bancorporation.

Eveleth Remodeling
First National Bank of Eveleth is
completely remodeling the interior of
the bank building to obtain more effi
cient use of existing space.

E d irard Êtrenier, f* 7 . H ies:
117as 1 9 3 4 K id n a p Vietila
E DWARD G. BREMER, 67, presi
dent and chairman of the board
of the Commercial State Bank, St.
Paul, Minn., kidnaped by the BarkerKarpis gang in 1934, died recently of
a heart attack in Pompano Beach, Fla.,
where he had been vacationing.
Mr. Bremer was kidnaped by the
gang January 17, 1934, and was held
for $200,000 ransom.
Then 37 years of age, the banker
was seized at a traffic intersection as
he was driving downtown after leav-

ing his 8-year-old daughter, Betty, at
Summit School.
He was held captive in a house at
Bensenville, 111., and was released by
his abductors at Rochester February
17, after two boxes containing the ran
som money were left on a gravel road
near Zumbrota, Minn.
Shortly thereafter, the FBI made
repeated raids across the country,
rounding up more than a dozen of the
gang members. They were eventually
sentenced to terms ranging from five
years to life imprisonment.

Jack Weber, John Ordos and Doug Johnson await your wishes.

Full service —whether

your appetite calls for complete
bank services or a Banker’s Blue Plate Special—is offered by
M idland’s correspondent staff D oug Johnson, John Ordos and
Jack W eber have plenty o f help behind them. Most often they’ll
com e up with appetizing answers for any request. Let them prove
Midland Bank’s friendship with special service.

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T H E B A N K W IT H T H E BIG W E LC O M E

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

• 4 0 1 S e c o n d A ve . So. • M in n e a p o lis , M in n . 5 5 4 4 0
Member Federal Deposit Insurance Corporation

N o r th w e s t e r n Banker, June,

1965

Minnesota News

L is t tignerai C om m ittee
C or T ôt h 3M.it. A . M eetim j
A RTHUR

a . HAESSIG, vice presi
dent of the American National
Bank of Saint Paul, has been named
general chairman of the 75th Annual
“Diamond Jubilee” convention of the
Minnesota Bankers Association sched
uled Monday, Tuesday and Wednes
day, June 14, 15 and 16, in St. Paul.
Kenneth A. Wales, executive secre
tary of the organization, reports that
approximately 2,000 bankers and their

A. A. H A E SSIG

W . L. BOSS

Elect Chairman
Edward M. Olsen, a director of the
First National Bank of Milaca since
1945, has been named chairman of the
bank’s board of directors and Bernard
Pearson, vice president and agricul
tural representative, has been elected
a member of the board.

Window Drive-In
Drive-in banking will make its debut
in Windom with the remodeling of the
First National Bank there, according
to V. L. Thompson, president of the
bank. The complete redecorating and
remodeling project is to be completed
about August 1.

Named Director
Russell Bauman has been elected
a new director of the State Bank of

second names listed are chairman and
vice chairman, respectively.

wives will attend the historical meet
ing at the Hotel Saint Paul.
Members of the general committee
include W. L. Boss, vice president of
the First National Bank; P. B. Bremicker, Jr., vice president of the North
western National Bank, and W. A.
Carpender, vice president of the Mid
way National Bank, all in St. Paul.
Additional committees, and members
of each, are listed below. First and

P. B. BR E M IC K E R , JR.

W . A. C A R PEN D ER

Kerkhoven. In addition, Mr. Bauman
was elevated from cashier to executive
vice president, Mrs. Curtis Johnson
was advanced from assistant cashier
to vice president and Clarence Hal
verson was named cashier.

Remodel at Onamia
The First State Bank at Onamia
has been remodeled inside and out.
The new inside decor includes panel
ing and recessed lighting.

Sell Bank Shares
An opportunity to become a part
owner of the Lake City Bank and
Lake City Insurance Agency is now
available to residents of the Lake City
area, according to Tom Scallen, presi
dent of the bank.
The offer is being made by Financial

Tax free municipal bonds

NORTHWESTERN BANK BUILDING

N o r t h w e s t e r n Banker, June,

FEderal 3-3475

1965

Remodeling Completed
The State Bank of Grey Eagle re
cently completed an extensive remod
eling project which included renova
tion of the bank’s interior.

To Cokato Bank
Ray Kusler, a member of the staff
of the First National Bank, Milbank,
for approximately four years, has been
named cashier of the First National
Bank, Cokato, effective June 1.

Roger De Boer, 40, president of the
First State Bank at Silver Bay, has
been named president of the North
western National Bank of Litchfield.

Allison-Williams Company

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Federal Reserve Bank of St. Louis

Underwriters, Incorporated, which is
the holding company operating both
institutions. Incorporated in 1962 by
Mr. Scallen, the company has never
before offered stock for public sale.
Par value has been set at $2.25 per
share. A minimum purchase of 10
shares is required.
Emery Zillgitt has been elected a
director of the Lake City State Bank.
Employed by the bank for the past 28
years, Mr. Zillgitt holds the position
of vice president and cashier.

Litchfield Bank President

for bank investment

MINNEAPOLIS

Banquet and Entertainment— R. E. Sipple, v.p.,
American National Bank ; J. A. Ritt, v.p., Midway
National B ank; R. James Gesell, cash., Cherokee
State B ank; David R. Fesler, v.p., Liberty State
Bank ; and Warren T. Braham, tr. off., American
National Bank.
First Night Party— D. L. Smith, a.v.p., First
National Bank ; G. Reed Macomber, v.p., American
National Bank ; Richard C. Swanberg, a.c., First
National Bank ; W . R. Jordan, v.p., Cherokee State
Bank ; and F. E. Trantanella, a.c., Midway Na
tional Bank.
Golf— William T. Price, v.p., American National
Bank; J. M. Woolridge, a.v.p., First National
Bank ; and Roland Nordlund, Hillcrest State Bank.
Hotel, Utility and Transportation— R. E. Stev
enson, v.p., Highland Park State Bank ; H. N.
Snyder, a.c., First National B ank; Philip Frank
lin, a.v.p. and tr. off., Midway National Bank ;
James T. Gowan, a.c., First National Bank ; W . H.
Kortum, v.p., Western State B ank; and Robert
Hagen, ex. v.p. and cash., Phalen Park State
Bank.
Ladies Luncheon— Valaria Hecht, Northwestern
National B ank; Mrs. Elizabeth Hagerty, a.c.,
American National B ank; Corrine Severson, Mid
way National B ank; and Isabel Shea, First Na
tional Bank.
Publicity— S. E. Rogers, a.v.p., First National
Bank ; J. T. Sample, Jr., a.v.p., American National
B ank; and James C. Graham, v.p., Stock Yards
National Bank, South St. Paul.
Registration— Carl E. Bergquist, a.c. ; A1 Carl
son, Mariner Clark and James Brooks, all of Fed
eral Reserve Bank of Minneapolis.
Speakers Reception— David A. Shern, v.p., First
National Bank ; Roger Kennedy, v.p., Northwest
ern National Bank ; Dyer Brogmus, pres., Minne
sota State Bank ; Hoyt Lathen, v.p., Stock Yards
National Bank, South St. Paul ; and Richard O.
Long, pres., First State Bank of White Bear Lake.

Elect Two Officers
The First National Bank of Fergus
Falls has elected Earl J. Grundei exec
utive vice president and Rowan C.
McAllister cashier, according to Sam
uel P. Adams, president. Mr. Grundei,
cashier at the bank since 1960, was

elected to fill the vacancy left by the
death of H. E. Swenson. Mr. McAl
lister has been installment loan man
ager and assistant cashier at the
Downtown State Bank, St. Paul.

To Winona Board
Richard C. Callender, president of
Badger Foundry Company, has been
named to the board of directors of the
Merchants National Bank, Winona.

To Cloquet Board
A Cloquet civic leader, Parker D.
Childs, has been elected a director of
the First National Bank of Cloquet,
replacing Mrs. Ruth Dixon McNair,
who resigned.

Elected Cashier
David F. Sheldon, formerly assistant
cashier at the First National Bank,
Winona, has been elected cashier of
the American State Bank, Watertown,
Minn.

Named Loan Officer
A. Fleckenstein has been appointed
timepay manager and loan officer of
the First National Bank, East Grand
Forks, and Ralph Kovar has been
named timepay adjuster at the bank.
Mr. Fleckenstein was formerly asso
ciated with the First National Bank,
Bismarck, N. D.

50th Anniversary
A 50th anniversary customer appre
ciation celebration was held at the
Owatonna State Bank last month
marking the institution’s half-century
in Owatonna. Refreshments were
served throughout the day, roses and
rose bowls were presented to visiting
ladies, pens to visiting men and bal
loons were distributed to the children.
Joseph C. Poire is president of the
bank.

Sell Austin Stock
Joseph J. Lickteig, chairman, and
John Higgie, director, announced re
cently the sale of their stock in the
Sterling State Bank, Austin, and their
resignations from the bank’s board of
directors.
Mr. Lickteig served as chairman
since the bank opened May 1, 1959,
and Mr. Higgie had served as a direc
tor for the past three years. Their
stock has been sold to Medelco, Inc.,
Rochester. Richard Plunkett, Roches
ter attorney, and Joseph C. Poire,
Rochester electronic engineer, are Medelco’s principal stockholders. The
firm owns substantial stock in the
Owatonna State Bank and Rochester
State Bank and both men are members
of both bank’s boards.

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Federal Reserve Bank of St. Louis

People Who Spend Money. . . Lake the LaMonte Look!
In the market for a m asterpiece? Sm art buyers in the printing and bank
ing business have looked on La Monte as the master artisan in check
paper sin ce the original was produced in 1871.
And little wonder. Ever since George La Monte developed the original
safety paper over 94 years ago, La M onte’s co ntinu in g research has been
dedicated to producing the fin e st in safety, so rtab ility and appearance
for th eir customers. T hat’s why the m ajority of fin a n cia l in stitu tio n s to
day consider La Monte the fin e st safety paper in the industry.

Safety Paper for Checks
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N o r t h w e s t e r n Banker, June, ¡ 9 65

New Recordak Reliant' 600 Microfilmer
high precision features ■ New high.
versatility ■ New simplicity and-

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Federal Reserve Bank of St. Louis

■ New higher quality images ■ New
reduction ratio ■ New index coding
dependability ■ Smart new look, too !

Big news for Wall Street, for any street where there’s
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filmer. ■ New Kodak-designed optical system for another
new high in image quality. ■ New 45:1 reduction ratio
film unit (one of four available) for a new high in reduction
ratios. ■ New 3 -line Kodamatic Indexer for precision
code-line indexing on the film for faster look-up. ■ New
improved Recordak Automatic Feeder for sustained high
speed microfilming. ■ New convenient operator controls,
plus traditional Reliant features of hand-level feed and eyelevel ejection. There’s a new trim look to the Reliant 600
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it is the world’s most advanced microfilmer. Call your
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Federal Reserve Bank of St. Louis

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Minnesota News

To ilvihu’v S A T T ax A tira a itt i/o
WO bills to reduce the Federal
income tax advantages enjoyed by
T
savings and loan associations and mu
tual savings banks have been intro
duced by Representative Thomas B.
Curtis (R.-Mo.) and Representative
John C. Watts (D.-Ky.), both members
of the House Ways and Means Com
mittee.
The Bankers Committee for Tax
Equality endorses these two bills as
springboards which will lead to equal
treatment for competing financial in
stitutions.
Congressman Curtis’ bill (H. R.
7585) seeks to remove the present
statutory allowance for bad-debt loss
reserve deductions by savings and
loan associations and mutual savings
banks. It would permit these institu
tions to use the same bad-debt loss re
serve reduction formula now set by
the Treasury for commercial banks.
This rate is presently 2.4 per cent of
eligible loans.
Congressman Watts’ bill (H. R.
7649) would change the permissible
bad-debt loss reserve ceiling for sav
ings and loan associations and mutual
savings banks from 6 to 5 per cent of

What is
the Canadian
Economic
outlook?
T h e G N P in C a n a d a th is y e a r is
e x p e c te d to h a v e g r o w n b y 8 % to
$ 4 6 .5 b illio n . I f y o u w a n t to h e lp
c lie n ts e x p a n d in to t h is f a s t -g r o w
in g m a r k e t , B a n k o f M o n t r e a l ’s
in fo r m a t iv e m o n t h ly B u s in e s s
R e v ie w c a n h e lp a n sw e r y o u r
q u e s tio n s . I t ’s y o u r s f o r th e a s k in g .
F o r d e t a ils o n t h e m a n y o t h e r
s e rv ic e s o ffe r e d A m e r ic a n b a n k
e rs b y C a n a d a ’s F ir s t B a n k , v is it
o u r n e a r e s t U . S . office.

The Bank of
Montreal supplies
the answers
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N ofor
r t hFRASER
w e s t e r n Banker, June, 1965
Digitized
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Federal Reserve Bank of St. Louis

loans. At the same time it would es
tablish by statute a bad-debt loss re
serve ceiling of 4 per cent of loans for
commercial banks.

THE BANK DIRECTOR . . .
(Continued from page 29)
with the investment policy. He should
know how to find new customers. He
should be familiar with earnings and
expenses and the dividend policy of
the bank. He should be familiar with
consumer and mortgage credit. He
should be familiar with bank mergers,
as to whether or not a merger would
be beneficial to his bank.
Unhealthy Loan Competition

A bank director should see that a
well-rounded loan policy is established.
Sometimes a desire to increase a
bank’s earnings will lead the directors
to approve a too vigorous loan pro
gram, and most frequently this can
head one into difficulty. Directors
should be held accountable for ade
quately supervising — through fre
quent meetings and audits—the bank’s
loan activities. Directors should not

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permit themselves to be stampeded
into unhealthy competition for loans,
as it is bound to color their credit
judgment. The American Bankers
Association issues a loan policy check
list for directors’ aid in carrying out
their functions. With reference to
loan policy, bank directors should
make sure that the following points
are not overlooked:
1. Before a loan is extended, refer
ence should be made to the liability
ledger to determine the borrower’s
total indebtedness to the bank.
2. Every loan should be accom
panied by a repayment plan, concern
ing which active officers should be
apprised even though the plan is re
corded in the minutes.
3. Important maturing loans should
be reviewed before maturity, and in
structions should be given to active
officers if the loans are not progressing
satisfactorily.
4. Charged-off loans should be kept
under continuing review, and chargeoffs should be frequently compared
with recoveries made. Responsibility
for effecting recoveries should be
fixed.
5. Financial statements should be
analyzed and operating statements
should be obtained—when necessary—
for complete analysis.
6. Collateral, including real estate
pledged, should be reappraised period
ically.
7. Policy should be defined with ref
erence to—
(a) The relation of the greatest risk
assets—that is loans—to total re
sources.
(b) The relation of real estate
loans to savings deposits.
(c) The p e r c e n t a g e to be lent
against appraised value of real
estate collateral.
(d) The ceilings on discounts to be
accepted from dealers.
(e) When to charge off loans.
A bank’s investment policy is also
the responsibility of the board of di
rectors, even though authority for spe
cific transactions must be delegated to
someone else. I think a board must
possess a basic understanding of the
purpose and nature of bank reserves
and know something about the princi
ples of investment, in light of today’s
special banking needs.
Attention to Trust Services

The trust department of a bank
should be given more attention by the
directors. As communities become
more wealthy, the need for more trust
services will arise. In the case of
national banks, the attention a trust
THE BANK DIRECTOR . . .

(Turn to page 66, please)

A n NFL Case S tudy
RE: Western State Bank
Marshall, Minnesota

Problem
"For years" says Art Persons,
"we had been looking for an
insure our farm operating and
offering Credit Life Insurance
but our farm loans, amounting
were uninsured."

Marshall, Minnesota, banker,
effective and efficient way to
livestock loans. We had been
on monthly installment loans,
to 80% to 90% of our totals,

Solution
National Fidelity's new BANKERS SPECIAL POOL Plan was
"customized" to solve this problem. Now, the bank efficiently
offers low-cost insurance to ALL farm borrowers with effec
tive results. AND, the amount of insurance actually fluctuates
as the farmer's loan needs rise and fall.
Art Persons (left) and Robert H. Johnson (right), Marshall, Minnesota, bankers,
go over details of BANKERS' SPECIAL POOL Plan with NFL Credit Life rep
resentative H. E. Meichsner.

“Now, W e Are Insuring Farm Loans
Through NFL’s New POOL PLAN”
Y es, M r. Persons now insures his bank’s fa rm
loans under the new B A N K E R S ’ S P E C IA L POOL
Plan originated by N ational F idelity L ife. It is
reassu ring to know, he says, that the plan helps
the bank m inim ize its farm -loan risks in addition
to providin g a m uch-needed service fo r the a g ri
cultural loan borrow er.
Certainly the plan has been well received by farm
borrow ers. A bout 95% o f them, when told about
the plan, quickly insure their loans. (T h e low cost,
o f course, makes it attractive to the borrow er.)

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Federal Reserve Bank of St. Louis

Mr. Persons also explains that the plan is ex
trem ely easy to adm inister. No unusual bookkeep
ing . . . no com plicated refunds when a borrow er
pays off his loan “ in advance.” Y et the plan makes it
possible fo r the borrow er to be fu lly insured as his
loan needs fluctuate between planting and harvest.
Y es, these are the reasons M r. Persons is so
pleased w ith his insured farm -loan plan. (1 ) It is
low cost, and very com petitive w ith plans offered by
other agricu ltural lending agencies. (2 ) It is easy
to administer. (3 ) It protects the bank as well as
the borrow er.

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KANSAS C IT Y 6, M O .
N o r th w e s t e r n Banker, June, 7965

Minnesota News

THE BANK DIRECTOR

. . .

(Continued from page 64)
department gets is spelled out in reg
ulation 9 of the office of the Comptrol
ler of the Currency in sections 9.7 and
9.9. Regulation 9 plans the responsi
bility for the proper exercise of fiduci
ary powers of the bank or its board
of directors.
A director’s regular attendance at
board meetings is essential. Bank di
rectors are not exempt from personal
liability for actions of the board on
grounds that they were absent when
a particular decision was taken. A
bank director must always keep him

self informed of all acts of the board
because he is equally liable with his
fellow members, regardless of wheth
er he was present or not.
Not an Echo

Thus, as I have stated over and over
again in this discussion, a bank direc
tor has a position of great responsibil
ity. His decisions on his bank’s ma
jor policies must be based on some
reasoned consideration of all of the
problems involved. A good and sin
cere bank director should never allow
himself to become an echo of the deci
sion of any of his executive officers.
He, the bank director, is expected to

provide real leadership, and this is a
quality which requires both knowl
edge and an active interest in the af
fairs of his institution.
There is also the situation that
might call into play the principle of
undivided loyalty. Loyalty to the
bank or any corporation is a duty im
posed by law upon directors and offi
cers by virtue of their positions. A
bank director should never allow him
self to be put in a position where a
conflict of interest may develop.
A Position of Trust

Justice Stone once said (A precept
as old as holy writ) that a man cannot
serve two masters, and when a man
seeks or accepts a position of trust, as
he does when he becomes a director or
officer, he thereby undertakes to sub
ordinate his personal interests to those
of the corporation, where the two
conflict. Judge Cardozo also said,
“Many forms of conduct permissible
in a workaday world for those acting
at arm’s length are forbidden to those
bound by fiduciary ties. A trustee
is held to something stricter than the
morals of the market place. Not hon
esty alone, but the punctilio of an
honor the most sensitive, is then the
standard of behavior.”
Any bank director who conscien
tiously carries out his duties makes a
great and fine contribution to the so
cial and economic well being of his
community. People must expect to,
and are entitled to, see their bank in
good hands. A bank director must not
prove a disappointment to his trust.
—End.

Former Governor

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L IV E S T O C K

NATIONAL SIOUX
BANK
CITY
Located in the Nation’s Fastest Growing Central Puldic Market
M EM BER FE D E R A L DEPOSIT IN S U R A N C E C O R P O R A T I O N

N o r th w e s t e r n Banker, June, 1965

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C. Elmer Anderson, Nisswa, has
been named president of the State
Bank of Hamburg. A former Minne
sota governor, Mr. Anderson plans to
keep his business holdings in Brainerd
including the iron Exchange Building
and the 502 Building.

Begin Construction
Construction began last month at
the First National Bank of Henning.
The bank will be remodeled and an
addition to the bank will be erected.

Open Remodeled Bank
Grand opening was held recently at
the newly-remodeled home of the Em
pire State Bank, Cottonwood. The
building, begun in July, 1964, had not
been remodeled since the structure
was erected in 1915. As a result of the
remodeling project, the bank’s area
was expanded to approximately dou
ble its original size.

67
Mr. Odlin reported that the hearing
came back and said that “banking was
just about the most racket-free indus
try in the United States.
“However, we feel that one fastbuck operator is too many,” said Mr.
Odlin, “and we must all be on the
alert to keep them out.”
2. The ABA is supporting legisla
tion to force national authorities to be
governed by local state laws, particu
larly in the area of branching. In
some cases national authorities have
granted branches in conflict with local
laws.
“ It’s over simplification,” he said,
“to say that branch banks and inde
pendent banks can work side by side.
The mere creation of branches is not
necessarily bringing to communities
SDBA OFFICERS— A. S. G-ullickson, Huron, executive secretary-treasurer; Robert H.
better know-how, better lending abil
Walrath, pres., First Citizens National, Watertown, pres.; J. S. Holdhusen, pres., Ipswich
ity, better banking.
State, first vice pres., and Walter Pailing, pres., American National, Rapid City, second
“ I am not one of those willing to
vice pres.
throw away what we have evolved in
banking for a branching system we
don’t know will work.”
At South Dakota Convention
3. The chaotic situation which pre
vails on the question of mergers be
cause of recent Supreme Court deci
sions must be straightened out, and
the ABA is supporting a bill to vali
date all mergers accomplished and to
reaffirm a 1950 bill which stated that
By BEN HALLER, JR.
all decisions made by federal authori
Editor
ties are final.
4. Because of lack of cooperation be
and
tween
the various federal agencies,
LARRY NOTHW EHR
there is movement to bring the Comp
Associate Editor
troller, FDIC and the Federal Reserve
Board under one control. As an alter
’LL see that we are heard,” said dent Hogan E. Iverson, president of native to this, the ABA has asked the
President to have the Secretary of the
Reno Odlin, chairman of the Puget Farmers State Bank, Canton.
Sound National Bank, Tacoma, Wash.,
J.
S. Holdhusen, president of Ips Treasury call together these agencies
and president of the American Bank wich State Bank, moved up to first and resolve their differences.
As mentioned previously, Mr. Odlin
ers Association. With this statement, vice president, while Walter Pailing,
Mr. Odlin concluded his address to the president of American National Bank closed by saying that he would con
annual convention of the South Dako and Trust Company at Rapid City, tinue to reflect the thinking of all
ta Bankers Association and the more was elected the new second vice presi bankers to the best of his ability and
push for the ideals and beliefs of the
than 800 attending bankers were con dent.
vinced that the ABA would, indeed, be
In his convention address, Mr. Odlin American Bankers Association—and
“see that we are heard.”
heard.
discussed several items which he felt
The popular president of the Ameri needed the attention of all bankers.
Another headline attraction on the
can Bankers Association was one of
1.
He pointed out that the recent fine convention program was Hugh D.
the headline speakers at the three-day McClelland hearings involving bank Galusha, Jr., newly elected president
convention held last month in Sioux failures received the full support of of the Federal Reserve Bank of Minne
Falls. Highlight of the convention the ABA to make certain that all in apolis. Mr. Galusha, in his first ap
came on the final day when Robert H. formation was kept in the proper per pearance before South Dakota bank
Walrath, president of First Citizens spective. Though there has been a ers, stated that the major economic
National Bank at Watertown, was seeming rash of bank failures, he problems in the Ninth Federal Re
elected to the presidency of the South noted that only .006 per cent of all serve District do not differ to any
Dakota Bankers Association. He ac banks were involved and only .088 per great extent from state to state. Com
cepted the gavel from retiring Presi- cent of deposits.
mon problems must be met by com-

Odlin U rges Hranehing Caution
A n d " O K " o f A ll Cast M erg ers

The National Bank
OF S O U T H

DAKOTA

M em ber o f Federal Deposit Insurance Corporation

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CORSICA
WESSINGTON SPRINGS
HURON
SIOUX FALLS
PLATTE
Main at 8th
PRESHO
S. Minnesota at 33rd
VERMILLION
E- 10th at 0n,aha
Affiliated with FIRST BAN K STOCK CORPORATION
N o r th w e s t e r n Banker, June,

1965

South Dakota News

LEFT— Convention speakers, A B A pres. Reno Odlin, chmn.,
Puget Sound Natl., Tacoma, W ashington; Dr. Paul S. Nadler,
associate prof, of finance, New York Univ., N. Y .; retiring
SDBA pres. Hogan Iverson, pres., Farmers State, Canton, and

mon effort by all banks in the district,
he stated.
In reviewing his concept of his job
as president of Federal Reserve Bank
of Minneapolis, Mr. Galusha said, “Our
job is one of creating a climate in
which the progress we all seek for
the district can take place. We must
see that our facilities and our people
are available to help bankers in the
district grow.”
Dr. Paul S. Nadler, associate profes
sor of finance at New York University,
discussed the outlook for banking and
pointed out that bankers must look to
time and savings money to maintain
total deposits. But, he went on to
say, bankers must be very careful that
time and savings deposits are actually
making money. This can be done (1)
by loans for consumer financing at 10
to 12 per cent, (2) getting other busi
ness as a result of getting a time de
posit, (3) becoming more aggressive
as a result of a more stable deposit
base, and (4) selling capital deben
tures.

Dr. Nadler urged the use of capital
debentures, but cautioned bankers in
three areas:
(1) Watch the cost of debentures.
(2) Don’t put debenture money in
tax-exempt bonds.
(3) Don’t sell to your neighboring
people. Sell far away so that your
own deposits aren’t disturbed.
Debentures can profitably be used
by banks with as little as $4 million
to $5 million in deposits, he said.
Other convention speakers included
S. J. Kryzsko, president of Winona
National and Savings Bank, Winona,
Minn., and savings and bond chairman
for the ABA: Dr. John Furbay, New
York, appearing through the courtesy
of General Motors Corporation; and
Clayton Rand, Gulfport, Miss., news
paper publisher.
In formal ceremonies at the Satur
day afternoon session of the conven
tion, 24 men were honored for long
time service to South Dakota banking.
Those receiving 50-year pins were:
Donald P. A m sb erry , president,

LEFT— Seated: Les Grosz, exec, v.p., Security Bank, Webster,
and Keith Kohrs, U. S. Checkbook Co., Sioux Falls. Standing:
Ray Vogel, U. S. Checkbook Co., Rapid City; Ted Schanzenbach,
cash., First Natl., Selby; Martin Haar, v.p. & cash., Farmers &
Merchants, Aberdeen, ' and Delbert Paul, v.p. & cash., Sully
County Bank of Onida. RIGHT— Seated: Alden K. Small, a.v.p.,

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S. J. Kryzsko, pres., Winona Natl. & Savings, Winona, Minn.
RIG H T— Jay Bordewick, a.v.p., U. S. Natl., Omaha, Nebr.;
Don A. Stephen, assist, sec., Irving Trust Co., N. Y., and
Charles Undlin, exec, v.p., 1st Natl, of Black Hills, Rapid City.

Farmers State Bank, Carthage; Thom
as S. Harkison, chairman, National
Bank of South Dakota, Sioux Falls;
M. J. McGillivray, president, Citizens
State Bank, Clark, and Obed R. Skola,
president, First National Bank, Eden.
Receiving 40-year pins were:
William W. Baker, president, First
National Bank, Sioux Falls; Edwin
W. Boehmke, president, Wilmot State
Bank, Wilmot; Nellie C. Callahan,
president, Vivian State Bank, Vivian;
Helen Griffin, auditor, Aberdeen Na
tional Bank, A b erd een ; Albert J.
Haerter, cashier, Farmers State Bank,
Hosmer; Erling Haugo, president,
Sioux Valley Bank, Sioux Falls; Ralph
(Pete) Mattson, vice president, First
National Bank of the Black Hills;
Theodore E. Neiger, assistant cashier,
First State Bank, Warner; Loyal C.
Olson, vice president, Bank of Union
County, Elk Point; Ed H. Peters, vice
president, Security Bank, Webster;
Thomas E. Porter, chairman, Se
curity Bank, Webster; N. J. Thompson,
vice president, National Bank of South

Chase Manhattan, N. Y .; Carroll Lockhart, director, First Citi
zens Natl., Watertown, and Philip B. Harris, sr. v.p., North
western Natl., Minneapolis. Standing: Keith Barnett, v.p.,
Northwestern Natl., Minneapolis, and Ivan Steen, v.p., North
western Natl., Sioux Falls.

FROM L E F T : Bill Heimerman, sr. v.p., Northwestern Natl.,
Sioux Falls; Henry Byers, pres., Bankers Service Corp., Des
M oines; George V. Janzen, asst, v.p., Central Bank & Trust,
Denver; R. D. Bonfoey, a.v.p., First Citizens Natl., Watertown;

Gene Hagen, a.c., Security Natl., Sioux City; Maurice Strothman, Jr., first v.p., and Hugh. D. Galusha, Jr., pres., Federal
Reserve Bank of Minneapolis, and Curtis B. Mateer, exec, v.p.,
Pierre Natl. Bank.

FROM LEFT— Jim Stachour, a.c., Toy Natl., Sioux City; Dick
Taylor, v.p., First Natl., Sioux City; R. W. Habberstad, pres.,
Farmers & Merchants State, Iroquois; Boyd Hopkins, pres.,

Live Stock State, Artesian; Fred Pfaff, v.p. and gen. sales
mgr., U. S. Checkbook Co., Omaha, and Russell Peterson, dist.
mgr., St. Paul Terminal Warehouse Co., Omaha.

L E FT: Jim Diefendorf, cash., Farmers State, Irene; A. L..
Mikkelson, v.p. and cash., Security State, W akonda; Ed Newell,
a.v.p., Live Stock Natl., Sioux City, and Merle Dean, Jr., pres.,
Farmers State, Canton. RIG H T— A t the Wise. Graduate School
o f Banking breakfast. From left: Clarence Erickson, a.v.p.,
Union Bk. & Tr. Co., Sioux Falls; Wayne Bredeson, exec, v.p.,

Farmers & Merchants. W atertown; Scott Lovald, pres., First
Natl., Philip; W. M. Willy, pres., Security Bank, M adison; T.
E. Neiger, a.c., First State, Warner, 1966 chm. of Wise. School
o f Banking breakfast, and Jack H. McMillan, v.p. & mgr.,
Stockyards branch, Northwestern Natl., Sioux Falls, 1965 chm.

LEFT— Avery Fick, a.v.p., Marquette Natl., Minneapolis; Eu
gene C. Mahoney, pres., Security State, Canova; August Tliorstenson, pres., First National, Selby; C. E. Johanson, cashier,
Hand County State, Miller. RIG H T— Ed Newell, a.v.p., Live
Stock Natl., Sioux City; Clarence W. Sauer, cash., First State,

M cLaughlin; Charles W. Battey, Jr., second v.p., Continental
111. Natl., Chicago; Doug Johnson, v.p., Midland Natl., Minne
apolis; Earl F. Nixon, pres., Dakota State, Milbank, and John
Ordos, a.c., Midland Natl.

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

South Dakota News

LEFT— Seated: Earl F. Nixon, pres., Dakota State, Milbank,
and Lloyd Jorgenson, treas., State of South Dakota, Pierre.
Standing: Don Wacholz, a.c., and Fred Haw, a.c., First Natl.,
Minneapolis. CENTER— Standing: David A. Shern, v.p., First
Natl., St. Paul; Bob Frei, pres., Commercial State, Wagner, and

Dakota, Presho; George W. Toft, presi
dent, Commercial Trust & Savings
Bank, Mitchell; Benjamin O. Wangsness, president, First National Bank,
Garretson; Thomas E. Wangsness, vice
president and cashier, First National
Bank, Garretson, and S. C. Young, vice
president, First National Bank of
Aberdeen.
On the social side, the convention
was preceded by the usual bowling
tournament and golf match on Thurs
day. Tying for the high individual
game in the bowling tournament were
Judy Berg, Farmers State Bank, Can
ton, and Dick Uithoven, The National
Bank of South Dakota, Sioux Falls.
The Northwestern Banker came to
the convention prepared to present
only one high game trophy which went
to Judy Berg; however, a duplicate tro
phy was ordered and presented to
Dick Uithoven at a later date.
Winner of the golf tournament was
Ivan Steen, vice president, Northwest
ern National Bank in Sioux Falls.
The convention closed with a ban
quet on Saturday evening. The Harmonicats were the featured entertain
ment.

John Raymond, a.v.p., First Natl., St. Paul. Seated: Mrs. Shern
and Mrs. Frei. RIGHT— Martin J. Colton, pres., and J. T.
Brick, v.p., The Natl. Bk. of South Dakota, and E. C. Pieplow,
v.p., First Natl., Aberdeen.

Aberdeen will be the site of the
1966 convention on May 12-14.— E n d .

New Building for Alexandria
On April 12, 1964, the Security State
Bank in Alexandria burned to the
ground in an early morning fire. On
April 10, 1965, the bank opened for
business on the same site—but in a
modern new building.
The white brick building includes
both drive-in and night depository fa
cilities. There is a full basement
which will be used as a community
room, according to L. N. Arend, vice
president and cashier.

Observes New Hours

other than South Dakota may not se
cure trust powers in South Dakota.
The opinion was given to Herman
Lerdal, state superintendent of banks,
who had been asked by an out-of-state
national bank for qualifying forms to
conduct fiduciary business in South
Dakota.
Mr. Farrar said that 1962 congres
sional action authorizes national banks
to secure trust powers only in the
state in which the bank is located.
He added that an individual may des
ignate a national bank chartered out
side the state as his executor or trus
tee, but the bank would be subject to
all trust and probate laws of the state
of South Dakota.

T.
W. Diefendorf, president of Farm
ers State Bank at Irene, reports that Elected Director
Keith Warren, president of the First
the bank is observing new hours dur
National
Bank of Clark, has an
ing the summer. The bank will close
at noon each Saturday and be open in nounced the election of O. P. Rasmus
sen to the bank’s board of directors.
the evening from 7:30 to 9:30 p.m.
Mr. Rassmussen is general manager of
the Clark Community Oil Company.

Decision on Trust Powers

A tto r n e y General Frank Farrar
ruled last month that a national bank
chartered to do business in a state

Bank W om en Elect
Mary Loucks, cashier of Rushmore
State Bank in Rapid City, was elected
chairman of the South Dakota group
of the National Association of Bank
Women at the group’s annual conven
tion in Sioux Falls last month.
Other officers are Francis Vincent,
vice president of American National
Bank in Rapid City, vice chairman,
and Mrs. Edith Young, vice president
of Southern Hills Bank in Edgemont,
secretary-treasurer.

Pierre Bank Moves

HONORED GUESTS were these bankers who received 50 year pins. From left: Donald
P. Amsberry, pres., Farmers State, Carthage; M. J. McGillivray, pres., Citizens State,
Clark; Obed R. Skola, pres., First National, Eden, and Thomas S. Harkison, chm., Na
tional Bank of South Dakota, Sioux Falls.
N o rFRASER
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The First National Bank in Pierre
has completed its move to a new loca
tion on West Sioux Avenue, according
to Clarence Neuharth, vice president.
Formal open house was planned for
late May.

South Dakota News
Retires After 5 0 Years
Einer J. Pearson, president of the
Brandon Savings Bank, has retired
after more than 50 years of service to
the bank. He had been president since
1936.
A majority interest in the bank was
recently purchased by John Vucurevick of Rapid City, and Don Cotton,
who is with the bank. Mr. Vucurevick
will become president and Mr. Cotton
will be vice president and cashier.
Robert Kolber has been named an
assistant cashier of the bank. He
comes to Brandon after seven years in
the First State Bank of Highmore.

M ie f f i n N e u '

l 'elimMirimeli

Honor Bank Employeee
The Northwestern National Bank at
Huron honored its senior employee,
Martha Fetherhuff, commemorating
her retirement after 47 years in bank
ing, all but four with the Northwest
ern National.
C. A. Lovre, Sioux Falls, president
of the Northwestern National Bank,
presented Mrs. Fetherhuff with a
wrist watch.

Appoint Ag Rep
Jack K. Rogers has been appointed
agricultural representative of The Na
tional Bank of South Dakota at Huron,
according to L. A.
Joh n son , v i c e
p r e s i d e n t and
managing officer
of the bank there.
Mr. Rogers has
been a real estate
a n d in su ra n ce
b r o k e r with an
insurance agency
in H u r o n a n d
prior to that was
a farm credit ap
praiser with the Federal Land Bank
of Omaha. He is a member of the
state legislature, being elected to that
post last year after filling out the un
expired term of his late father.

Announce Retirement
Henry C. Lehr, cashier, recently re
tired from the South Branch of The
National Bank of South Dakota. Mr.
Lehr joined the First Bank Stock Cor
poration in 1941 as a teller at the Na
tional Bank of South Dakota. He as
sumed his duties as assistant cashier
at the South Branch in 1957.

Hold A.Í.B. Banquet
Over 100 bankers attended the an
nual spring banquet of the American
Institute of Banking held in Sioux
Falls recently.
Tim Stern, a ss is ta n t cashier of

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R . O. ( D I C K ) W O L D , vice president and manager of the Colonial branch, Northwest

ern National Bank of Sioux Balls, S. D., has announced that the general contract for
construction of the bank’s new building has been awarded. W ork is to begin imme
diately and completion o f the project is scheduled for December, 1965. The facility
will feature a hard-surface parking lot and a drive-in window.

Northwestern National Bank; Cyril
Fitterer, The National Bank of South
Dakota, and Verlyn Smith, Western
State Bank, were elected to the board
of directors.
Norman Grosz, First National Bank,
was named president of the group.

NABAC Group Elects
Delmer Boyd, assistant cashier of
Farmers and Merchants Bank at Hu
ron, has been elected president of the
Central South Dakota Conference of
NABAC.
Vice president of the group is Julius
Goehring, assistant vice president of
The National Bank of South Dakota
at Wessington Springs. Terry Bedlow, Farmers and Merchants Bank of
Huron, is the new secretary-treasurer.
The board of directors consists of
Wallace Mikelsen, cashier of Commu
nity State Bank, Lake Preston; Rey
nold Klay, vice president of The Na
tional Bank of South Dakota, Huron;
and Mel Cunningham, assistant cash
ier of Pierre National Bank.

Begin Construction
C o n s tru ctio n has begun on the
Northwestern National Bank’s new
“auto-bank” facility in Sioux Falls.
Completion of the ultra-modern build
ing is expected in early 1966, accord
ing to C. A. Lovre, president.
Tim V. Stern, assistant cashier, will
be the managing officer of the new
facility.

Banking Board Action
Herman Lerdal, superintendent of
banks, reports the following action at

the South Dakota Banking Commis
sion’s recent meeting. Applications to
establish drive-in facilities were ap
proved for Farmers and Merchants
Bank, Huron; Commercial Trust and
Savings Bank, Mitchell; and Farmers
and Merchants Bank, Watertown.
Approval was granted to the Chan
cellor State Bank to increase its capi
tal account from $25,000 to $50,000.

Group Meeting Dates
A. S. Gullickson, executive secretarytreasurer of the South Dakota Bankers
Association, has announced the follow
ing schedule for the 1965 fall group
meetings:
September 20 — Group 5 at Rapid
City.
September 21—Group 4 at Mobridge.
September 22—Group 2 at Aberdeen.
September 23—Group 3 at Mitchell.
September 24—Group 1 at Yankton.

Open House
G. L. Hill, president of the Security
Bank at Webster, reports that the
bank will hold a reception and dinner
to celebrate the opening of their new
bank building. The event will be
held on June 10.
Tours of the building will be con
ducted with the other activities.

Complete New Building
The Citizens Bank of Vermillion
moved into its new bank last month
and plans a grand opening for June
11 and 12.
James E. Anderson, vice president,
reports the building is rural South
Dakota’s latest in bank buildings, comN o r t h w e s t e r n Banker, June, 1965

South Dakota News

plete with a time and temperature
sign—the first in Vermillion.

Join Yankton Bank
Eldred Hesla and Ronald Wright
have joined the staff of the American
State Bank of Yankton, according to
Leo Plank, cashier of the bank.

Oscar Neumann
Oscar Neumann, director of the
First State Bank at Pierpont, died re
cently. He retired in 1961 as cashier
of the bank and was with the bank for
37 years.
Succeeding Mr. Neumann on the
board is Mrs. R. C. Franzen, wife of
the president of the bank.

TABS . . .

E, H E S L A

R. W . W R I G H T

Mr. Hesla has been associated with
the Quaker Oats Company and the
J. I. Case Company before joining the
bank. He will be the agricultural rep
resentative.
Mr. Wright worked with the examin
ing staff of the Federal Reserve Bank
of Minneapolis for six years prior to
joining American State. He will also
be in the agricultural loan depart
ment.

New Staff Member
The addition of Walter Simon to the
staff of the real estate loan department
of the American National Bank and
Trust Company of Rapid City was an
nounced recently by Walter Pailing,
president of the bank.

Neir

(Continued from page 32)
• A breakdown as to type of occu
pation.
• Race (later omitted).
Baton Rouge is truly in the Deep
South. In designing the questionnaire,
the word race seemed to jump out at
officials. They were told that to omit
it would reduce the accuracy of the
budget for the Negro with a low in
come. This might work an injustice,
but in this race conscious era the pro
ponents dared not offend—even if it
would help. They took their question
to leaders at Southern University, the
largest Negro college in the United
States. Here, they were advised to
delete the question dealing with race.
This they did.
Public Relations Aspect

“TABS” was designed as a free serv
ice, but it had to be made to contrib
ute something to the bank other than
goodwill. Consequently, the informa
tion filled in on each questionnaire
will be processed by the computers,
placed in an envelope marked CON
FIDENTIAL, and returned to the cus

Hank

NEW SIOUX FALLS BANK OPENS— The National Bank of
South Dakota last month opened the doors of its new 10-story
banking facility at the corner of Main Avenue and 8th Street
in downtown Sioux Palls. The new white marble structure is
140 feet high and is topped by a 40-foot weatherball visible
throughout the Sioux Palls area. The building is the city’s
tallest office building and is the largest bank building in an area
o r th w e s t e rn Banker, June, 1965
DigitizedNfor
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Federal Reserve Bank of St. Louis

tomer at the Louisana National Office
nearest him. It’s just good public re
lations to get people into your place
of business and counsel with them re
garding their financial problems.
In addition, there is the very pow
erful factor of innovation—a new serv
ice which no other bank can offer—
something else to sell, in addition to
checking and savings accounts. There
is that corporate image idea which
bankers are always endeavoring to
polish, so being a leader in the field
of banking is very important, too.
The bank will also keep, on magnet
ic tape, a list of those who utilize this
newest LNB service. It is hoped
that this information will also provide
new avenues of marketing.
No Vainglorious Claims

Throughout the entire program,
Louisiana National Bank makes no
claims that this tailored budget will
solve financial woes, but it does prom
ise that “TABS” will show the areas
where the individual may be out of
line with his composite family.
If any other bank—outside of the
Baton Rouge area—should be inter
ested in this program, it can be made
available on a fee basis, including all
computer programming and pertinent
data for their area, as well as promo
tional material. LNB will also be
willing to perform these services, for
a fee, for any bank without data proc
essing equipment. LNB is not inter
ested in promoting a new business,
only recouping part of its costs in de
veloping the program.—End.

City 's Tallest

comprising North Dakota, South Dakota, southern Minnesota,
western Iowa and northern Nebraska. The modern interior of
the building, typified by the officers’ section, teller windows
and lobby area, is dominated by a 60- by 10-foot mural depicting
South Dakota life. Martin J. Colton is president of the bank,
Frank J. Cinkle is executive vice president, and Thomas S.
Harkison is chairman of the board.

NEW PRESIDENT o f the North Dakota
Bankers Association, elected at Minot last
month, is Gordon H. Weber, pres., Farmers
State, Lisbon. Flanking Mr. Weber are
A. A. Mayer, left, pres., The Dakota Na
tional Bank of Bismarck, 1st v.p., and
J. H. Munn, People’s State, Westhope, 2nd
v.p. Standing are William Daner, left,
executive secretary, Bismarck, and Virgil
F. Hegeholz, pres., Peoples & Enderlin
State, Enderlin, immediate past president.

holz, president of Peoples and Ender
lin State Bank, Enderlin, and presi
dent of the North Dakota Bankers
Association.
I.B.A.’s Stenehjem Speaks

r t h

r g

I t a

t a

EMBERS of the North Dakota
Bankers Association, in record
numbers, last month took a
long, hard look at their present opera
tions and heard some constructive sug
gestions for meeting the changes and
challenges they face in the future.
A total of 550 persons registered for
the 80th annual NDBA convention,
well in excess of the 512 who were re
sponsible for a new attendance record
the previous year. Host city for this
year’s convention was Minot, N. D.

t o

l i o

t i e

B y DAVID L. LENDT
Associate Editor

The organization’s executive council
announced that, in a meeting immedi
ately after the close of the final con
vention session, it was decided to hold
next year’s convention in Grand Forks,
N. D.
A l t h o u g h the three-day meeting
commenced on a Thursday, the first
business session was conducted the
following morning by Virgil F. Hege-

LE FT— Lee Stenehjem, pres., First International, W atford City,
and immediate past president, Independent Bankers Association;
Warren F. Vaughn, v.p., Security Trust and Savings, Billings,
Mont., who addressed the convention concerning the Uniform
Commercial Code; and S. J. Kryzsko, pres., Winona National and
Savings, Winona, Minn. RIGHT— J. J. Hillman, pres., First

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Federal Reserve Bank of St. Louis

The first address on the program
was delivered by Lee Stenehjem, pres
ident of the First International Bank,
Watford City, and immediate past
president of the Independent Bankers
Association. He offered a stinging de
nunciation of James Saxon’s policies
as Comptroller of the Currency and of
the various trends which he claimed
were detrimental to the continued suc
cess of the nation’s country banks.
He, however, also leveled criticism
at what he described as a few of the
nation’s country banks which, he said,
were not living up to their obligations
to the public.
“We, as bankers, are obligated to do
more than just keep the deposits of
our community safe,” he said. “ In a
small community, particularly, the
public has no place to put its funds
but in the bank. If our banks sit on
these deposits and put them in mu
nicipal bonds and government securi
ties, we are not fulfilling our obliga
tion to the public which lets us oper
ate.
“Actually, if we would have proper
ly recognized our community responsi
bilities a number of years ago, we
wouldn’t be faced with burdensome

State, M unich; L. A. Nelson, cash., Scandia American, Stanley;
Stanley Kwako, pres., Farmers State, Heaton; E. S. Hagert,
pres., Farmers and Merchants, W im bledon; C. O. Thompson,
pres., First Security, Underwood; A. O. Barstad, pres., First
State, H arvey; Leonard P. Gisvold, v.p., Northwestern National,
Minneapolis, and S. D. Jacobsen, pres., First State, Sharon.
N o r th w e s t e r n Banker, June, 1965

North Dakota News
Y

4
LEFT— Milton Boyce, office manager, Merrill Lynch, Pierce,
Fenner & Smith, Minneapolis; A. A. Haessig, v.p., American
National, St. Paul; Fred Meier, Union Central Life, St. Paul;
and D. H. Johnson, a.v.p., American National, St. Paul. EIGHT
— L. Donald Thorson, v.p., First National, Minot, and general
chairman of the convention; Dell Palmer, pres., Fargo National

competition that we now have from
the savings and loans, credit unions
and the federal sponsored lending
agencies. I am convinced that we, as
bankers, have greatly helped in estab
lishing our chief competitors. While
I served for five years as a member of
our state banking board reviewing the
examination reports, it became evident
to me that we have a few banks in our
state that are not fulfilling their com
munity responsibilities as bankers and
that they have very little justification
for their existence.
“Pump Enough Credit . . .”

“When we are granted a bank char
ter from the state or the comptroller
of the currency, we accept the social

and recipient of LT.S. Savings Bond Minuteman Aw ard; A. M.
Eriksmoen, exec, v.p., The Dakota National, Fargo, who made
the award presentation; and Rep. Mark Andrews, North Dakota
Congressman who was the featured speaker at the Friday eve
ning banquet.

responsibility that it involves to prop
erly take care of the credit needs of
the people we serve. In my opinion,
if a community is strong enough to
support a bank, then the bank has an
obligation to pump enough credit back
into the community to provide money
for housing loans, home improve
ments, car financing, farm needs and
the many other opportunities that we
have to make our economic wheels go
around.”
Bonds and Code

S. J. Kryzsko, president of the Wi
nona National and Savings Bank, Wi
nona, Minn., spoke in favor of the
U. S. Savings Bond program and
praised bankers for their interest and
participation in the past. The exten

sive activity of bankers in the pro
gram, he said, attested to their willing
ness to accept their responsibilities to
their country.
The North Dakota bankers later
went on record as supporting Mr.
Ivryzsko’s candidacy, in 1966, for the
position of vice president of the Amer
ican Bankers Association.
Warren F. Vaughn, vice president
of the Security Trust and Savings
Bank, Billings, Mont., and an attor
ney, gave the North Dakota bankers
a preview of the Uniform Commercial
Code which will become law in North
Dakota next year and which has been
in use in Montana since January.
“You’re going to like it,” Mr.
Vaughn told the bankers as he re-

LEFT— Arthur H. Davis, v.p. & tr. off., Liberty National, D ick
inson, winner o f the transistor radio presented by NORTH
W ESTERN B A N K ER as a door prize at the final business
session o f the N.D.B.A. convention. CENTER— A. O. Barstad,
pres., First State, H arvey; Eugene Rich, state banking exam
iner, and C. O. Harding, v.p., American State, Williston, follow
ing ceremonies honoring the two bankers for their 50 years in
o r FRASER
th w e s t e r n Banker, June, 1965
Digitized Nfor
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Federal Reserve Bank of St. Louis

the profession. RIGHT— Hugh Galusha, Jr., new president of
the Federal Reserve Bank o f Minneapolis, and Glenn A. Uggen,
pres., Peoples State, Wells, Minnesota, and president of the
Minnesota Bankers Association, who was present during the
N.D.B.A. convention. H. E. Iverson, chmn., Farmers State, Can
ton, S.D., and president of the South Dakota Bankers Associa
tion, also visited the convention.
y

North Dakota News
viewed briefly the improvements, par
ticularly in the area of secured loans,
which will accrue to the state’s bank
ers under the provisions of the Code.
He suggested that, inasmuch as the
new law is a lengthy and complex one,
bankers in the state would do well to
acquaint themselves with its provi
sions. He suggested, also, that bank
ers forewarn their attorneys in order
to be certain that they, too, are famil
iar with the changes affected by the
Uniform Code.
New Reserve President

Following an explanation of the pro
visions of the group life insurance
and health insurance plans which had
been approved for the association by
the organization’s executive council,
the bankers adjourned to a stag lunch
eon to hear Hugh Galusha, Jr., recent
ly-elected president of the Federal Re
serve Bank of Minneapolis, in his first
public appearance since his appoint
ment May 1.
While in Minot, Mr. Galusha was
sworn in as a member of the Federal
Open Market Committee in a brief
ceremony at the First Western State
Bank. Because he was scheduled to
attend his first Committee meeting the
following week, the swearing-in cere
mony was hurriedly arranged and was
conducted unbeknownst to all but a
handful of conventioneers.
In his address before the bankers,
Mr. Galusha noted that the problems
of the states within the Ninth Federal
Reserve District are similar and that
the states’ problems do not begin or
end at their individual state boun
daries.
He urged greater area-wide coopera
tion, particularly within the Ninth
District.
Following the luncheon address, sev
en of the state’s bankers were hon
ored for having completed 50 years in
the profession during the past year.
Those honored included A. O. Barstad,
president of the First State Bank, Har
vey; C. O. Harding, vice president of
the American State Bank, Williston;
John C. Hoffert, a director of the Fos
ter County State Bank, Carrington;
L. A. Sayer, president of the Binford
State Bank, Binford; F. E. Stewart,
vice president of the First National
Bank, Williston; F. H. Ellwein, a direc
tor of the Security State Bank, New
Salem, and A. C. Idsvoog, chairman
of the Grafton National Bank, Graf
ton.
The afternoon was reserved for
bowling and golf for the men and a
luncheon and style show for the ladies
at the Minot Country Club.
Evening Banquet

L. D. Thorson, general chairman for

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Federal Reserve Bank of St. Louis

the convention and vice president of
the First National Bank, Minot, acted
as toastmaster at the evening banquet
which was addressed by Representa
tive Mark Andrews, C on g ressm an
from North Dakota’s Eastern District.
Mr. Andrews touched upon a vari
ety of timely topics ranging from Viet
Nam to Santo Domingo to the recent
ly-passed Medicare bill.
Following Mr. Andrews’ address,
Dell Palmer, president of the Fargo
National Bank, Fargo, was presented a
minuteman Award for his successful
efforts in behalf of the state-wide U. S.
Savings Bond program for which he
served as volunteer chairman. Under
his guidance, the state exceeded, by
approximately 25 per cent, its Savings
Bond sales quota.
Younger Customers

Saturday morning, at the final busi
ness session of the annual convention,
Eugene Rich, state banking examiner,

NEW OFFICERS
North Dakota Bankers
Association
President—Gordon Weber, pres
ident, Farmers State Bank,
Lisbon.
First Vice President — A. A.
Mayer, president, The Dakota
National Bank, Bismarck.
Second Vice President — J. H.
Munn, vice president, Peoples
State Bank, Westhope.
Treasurer—Robert Hendrickson,
president, The First National
Bank, Bismarck.

NEW ABA OFFICER
Gary Lerberg, Cashier, Peoples
State Bank, Parshall, ABA
Executive Council Member for
Nor th Dakota ( three- year
term).

presented a talk entitled, “The Chang
ing Banking Scene,” in which he con
centrated his remarks upon the banks’
future customers.
Quoting Census Bureau statistics,
Mr. Rich pointed out the fact that the
population is growing younger and
younger and that the babies born dur
ing the postwar “boom” are now be
coming working and purchasing young
adults who will more and more re
quire banking services.
He also noted that fewer and fewer
bank customers have been adults dur
ing difficult economic times or world
war and that, as a result, young adults
today exhibit different concepts, dif
ferent ideas and different demands
than did their predecessors. Corre

spondingly, he said, they must be
treated differently when they go to
their banks for financial assistance
and banks must be prepared to serve
them or lose their business to compet
ing institutions.
Among his suggestions to the state’s
bankers were the following:
(1) If the industry is to maintain
its position as the leader in the finan
cial field, it must point its advertising
and service to young people.
(2) The young people will present
a less favorable financial statement
than the present consumer customer.
It used to be that the years of savings
came before the head of the family
was 40 years old. Now the savings
years of the American family come
after the head of the household is 40
years old.
(3) These young adults will pre
sent a less favorable financial expe
rience background than present cus
tomers. Certainly the caution inbred
by years of depression and war have
contributed to the conservative finan
cial status of the present consumer.
“ I know that many of you are con
cerned about financing of farm loans
by PCA, FHA, SBA and others who
have become competitive in the field
of business and farm financing,” he
said.
“We might well ask ourselves, ‘how
much additional financing can we af
ford to take, and do we have the staff
and financial assets to take care of
these credit demands?’ Certainly these
young people are going to find financ
ing someplace. A place in our busi
ness world must be found for these
young people. Because of their lim
ited financial and economic experi
ence, it may be necessary that other
sources of financing be made available
until they become acceptable bank
risks.”
Election Held

New members elected to the execu
tive council for two-year terms were
the following:
Lloyd Kempf, president, Grant Coun
ty State Bank, Carson; R. G. Burges,
cashier, Security National Bank, Edgeley; Robert Barstad, cashier, First
State Bank of Harvey, and Gordon
Larson, president, First State Bank,
Park River.
Outgoing President Hegeholz, in his
final address as head of the organiza
tion, ended the convention on a high
note when he reported that the NDBA
boasted the membership of every bank
in the state. Although the organiza
tion was consistently within striking
distance of the 100 per cent mark dur
ing the past several years, 1965 was
the first year in which the goal was
realized.— End.
N o r th w e s t e r n Banker, June,

1965

North Dakota News

New Manager at Fordville

Page State Appoints

New Cashier al Mott

Harris Trosen is the new manager
of the Fordville branch of the Walsh
County Bank. He succeeds Dan Bar
tholomew who has accepted a position
as executive vice president of the Curtis-Owens State Bank, Owens, Wis.
Mr. Trosen was with the Valley
Bank at Gilby prior to joining Walsh
County Bank.

R. Paul Pederson, vice president of
the Page State Bank, has announced
the appointment of Merland L. Carl
son as cashier and managing officer of
the bank.
Mr. Carlson has been with the North
Dakota State Banking Department for
the past three years and, prior to that,
he worked for eight years with the
First Bank Stock Corporation in vari
ous posts.

Don Loh has been named cashier of
the Commercial Bank of Mott, accord
ing to R. V. Trousdale, president. Mr.
Loh has been cashier of the First
State Bank of Regent.

Open Walk-In Facility
The Bank of Tioga last month
opened a new walk-in paying and re
ceiving facility located in the bank
building. The new facility will be
open two additional hours each week
day and from 9 to 12 on Saturday, ac
cording to R. C. Wiper, president.

A .I.B . Banquet
The Missouri Valley Chapter of the
American Institute of Banking held its
annual awards banquet in Bismarck
recently. President of the chapter is
Charles Mitchel, assistant cashier of
Dakota National Bank in Bismarck.
Main banquet speaker was Arthur
A. Erpelding, assistant treasurer and
manager of the main banking depart
ment at Farmers and Mechanics Sav
ings Bank in Minneapolis. Mr. Er
pelding has served A.I.B. for 25 years
and is currently on the National A.I.B.
executive council for District 10.

New7 Medora Facility
The Farmers and Merchants Bank
of Beach is building a paying and re
ceiving station at Medora. Construc
tion has begun on the new building
which will be located between the
church and the new post office in Me
dora.

K x tr u S erv ices

Allan M. Severson has been elected
president of the Grafton National
Bank effective July 1. He replaces
Carl W. Beireis who resigned to accept
a position as executive vice president
of the Austin State Bank at Austin,
Minn.
Mr. Severson has been vice presi
dent of the First National Bank of
Moorhead, Minn.

Thomas S. Kleppe has been elected
vice president and a director of J. M.
Dain and Company, a Minneapolisbased investment banking firm. He
will manage Dain’s corporate and in
stitutional services in North Dakota.
Mr. Kleppe was formerly president
of Gold Seal Company and is also a
former mayor of Bismarck.

Joins Page Bank

Open New Bank Building

Installs Computer System
A Burroughs B270 computer system
has been installed at the First Nation
al Bank in Grand Fords, according to
Paul Olander, vice president. The
system includes a sorter-reader, card
reader, central processor, magnetic
tape units and a line printer.
N o r th w e s t e r n Banker, June, 1965

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Federal Reserve Bank of St. Louis

In recent decisions by the State
Banking Board, Glenburn and Berthold will get new bank stations and an
exchange at Max will become a paying
and receiving station.
W. E. Keller, president of First
Western Bank at Minot, announced
receipt of approval for a paying and
receiving station at Glenburn.
American State Bank of Minot will
start paying and receiving stations at
Berthold and Max, according to T. A.
Solheim, president of the bank. First
Western had also sought authorization
for a station at Berthold, but the board
ruled in favor of the American State
application.

Heads Grafton Bank

J. M. Dain Elects

The First National Bank of Bowbells last month held open house in its
new quarters. John Norgaard, execu
tive vice president, reports that the
bank has occupied the new brick and
tile building since January.
Most of the bookkeeping equipment
was retained in the new building,
however new furniture and tellers’
counters were installed. This is the
third building the bank has occupied
since its organization in 1903.

State Bank Board Rulings

DICKINSON, NORTH DAKOTA’S new
First National Bank w ill offer several
“ extra” services along with its complete
conventional banking operations, accord
ing to Mrs. E. A. Nachtwey, president,
pictured with a model display of the pro
posed bank. W ork is scheduled to begin
this Spring on the new bank. Among the
“ extras” w ill be (1) a customer area built
around a Dow-Jones reporting service com
plete with teletype, (2) a financial library
including business books and periodicals
available to the public, (3) a community
room, (4) a completely-equipped kitchen to
serve the community room and (5) a trust
vault in addition to safe deposit and cash
vaults. The bank is to be completed early
next year.

Merland L. Carlson has been named
cashier and man
ag in g officer of
the Page State
Bank, Page, N.
D., according to
an announcement
by R. Paul Peder
son, v i c e p re si
dent of the bank.
Mr. Carlson has
been wi t h the
Nor th
Dakota
M. L. CA RL SON
State B a n ki ng
Department for the past three years.
He has been living in Valley City.

Confirm Diebold Purchase
Diebold, Incorporated, announced
recently that its offer to purchase a
minimum of 141,000 common shares of
Lamson Corporation has been success
ful, and that the checks covering the
payment of these 141,000 shares were
in the mail. Diebold announced that
its offer to purchase of April 22 was
still open, and that all additional Lam
son shares offered would continue to
be purchased for cash at $31.50 a share.

T. JACOBS

R. C. W A L L A C E

l t u

A. K. D A V IS

l i t t i i k

FULL and informative program of renowned speak
ers is scheduled for the 1965 convention of the
Montana Bankers Association Thursday, Friday
and Saturday, June 24, 25 and 26, at picturesque Jackson
Lake Lodge, Jackson Hole, Wyo.
The convention, which will mark its 62nd year this
month, will commence Thursday afternoon with a lunch
eon meeting of the executive council. The first general
business session will be called to order at 10 a.m. the
following morning:
Among the speakers scheduled are Hugh D. Galusha,
Jr., recently-elected president of the Federal Reserve
Bank, Minneapolis, and S. J. Kryzsko, president of the
Winona National and Savings Bank, Winona, Minn., and
a candidate, in 1966, for the office of vice president of the
American Bankers Association.
Several prominent bank officers and educators are also
scheduled to address the convention.
Theodore Jacobs, president of the First National Bank,
Missoula, is president of the Montana Association and
R. C. Wallace, Helena, is the organization’s secretarytreasurer.
The complete program follows:

H. D. G AL U SH A, JR.

t o

Thursday, June 24

P.M.
Luncheon Meeting of Executive Council-Confer
ence—Rooms 2 and 3.
Registration—Lower Lobby.
5:45 Social Hour—Sun Deck.
Honoring Theodore Jacobs, president of the Mon
tana Bankers Association. Compliments of Midland
National Bank, Billings; Metals Bank & Trust
Company, Butte; First National Bank, Great
Falls, and First National Bank & Trust Company,
Helena.
7:00 Dinner—Explorers Club.
9:00 Dancing—Explorers Club.
Refreshments Courtesy of Associate Members.
1:00

Friday, June 25
Explorers Room

A.M.
10:00 Call to Order—Theodore Jacobs, President, Mon
tana Bankers Association; President, First National
Bank, Missoula.
Invocation.
Welcome Address — Superintendent, Grand Teton
National Park.
President’s Address—Theodore Jacobs.
Address—Archie K. Davis, Vice President, Ameri
can Bankers Association; Chairman, Wachovia
Bank & Trust Company, Winston-Salem, N. C.

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Federal Reserve Bank of St. Louis

i r k

s o

o l t *

Meeting of Montana Members of American Bank
ers Association—R. Wickham Baxter, A.B.A. State
Vice President for Montana; President, Ravalli
County Bank, Hamilton.
Address—Henry C. Coleman, Chairman, Commer
cial Bank at Daytona Beach, Fla.

A...

•

H. C. C O L E M A N

S. J. K R Y Z S K O

P.M.
12:15 Luncheon Meeting of 25-Year Club.
2:00 Address—James L. Athearn, Dean, School of Busi
ness Administration, Montana State University—
Explorers Room.
Greetings—Hugh D. Galusha, Jr., President, Fed
eral Reserve Bank, Minneapolis.
U. S. Savings Bonds—S. J. Kryzsko, President, Wi
nona National and Savings Bank, Winona, Minn.
Report of Resolutions Committee— Dean Albert,
Executive Vice President, First National Bank,
Ekalaka.
Address — A. W. Larsen, Vice President, Wells
Fargo Bank, San Francisco.
Adjournment.
6:00 Social Hour—Sun Deck. Participants requested to
wear costumes of country or origin or choice. Com
pliments of Union Bank & Trust Company, Helena.
7:00 Family Dinner—Explorers Room.
9:00 International Ball—Explorers Room.
Music by Billings Jam Band. Refreshments Cour
tesy Associate Members.
Saturday, June 26
Explorers Room

A.M.
10:00

Call to Order.
Address—John Sweeney, Vice President, North
west Bancorporation, Minneapolis.
Address—D. Q. Posin, Chairman, Physics Depart
ment, De Paul University, Chicago.
New or Unfinished Business.
Election of Officers.
Installation of Officers.
Drawing for $100 Door Prize.
Adjournment.
LADIES’ ENTERTAINMENT
Friday, June 25

P.M.
1:00 Luncheon—Rooms A & D.
“ Men and Women of Science”—D. Q. Posin, Chair
man, Physics Department, DePaul University, Chi
cago.
Door Prizes.
N o r th w e s t e r n Banker, June, 1965

News

M o n ta n a

Heuutiiul Convention

ert, who died recently. Mr. Jardine
had been vice president.
Ruth Opie was advanced from vice
president to executive vice president
and Harold Piazzola advanced from
cashier to vice president and cashier.
He was also named to the board of
directors.

Moves to Helena

SITUATED in the heart o f the rugged Grand Tetons is Jackson Lake Lodge in Grand
Teton National Park, Wyoming. Both the W yoming Bankers Association and Montana
Bankers Association will hold their annual conventions here in June. The Lodge and
surrounding cottages contain 350 guest rooms, most of which command a sweeping view
o f placid Jackson Lake and the towering Tetons.

Elect Director

Whitehall Elects Officers

Gerald T. O’Bryan has been elected
to the board of directors of the Secu
rity State Bank of Harlem. He is a
rancher and businessman in Harlem.

At a recent meeting of the board of
directors of the Whitehall State Bank,
John H. Jardine was named president
of the bank, succeeding Alex W. Rob

Frank Bennett, assistant cashier at
the Red River Na
t i on al Bank in
Grand Forks, N.
D., has been elect
ed to the position
of vice president
at the Commerce
Bank and Trust
C o m pa n y in He
lena. Lyle Olson,
president of the
bank, made the
announcement,
noting that Mr. Bennett is a native of
Montana and began his banking career
at the First National Bank in Havre.

Named to Board
Leo Fisher has been named to the
board of directors of the First National
Bank of Whitefish. Mr. Fisher is an
attorney in Whitefish.

Our ( ) 7 th year

New Director at Great Falls

o f experience in providing
superior correspondent facilities
fo r Montana Banks

UNION B A N K AND
TRUST COMPANY
HELENA

M O N TA N A
Member Federal Deposit Insurance Corporation

Visit Glacier National Park
and
The Blackfeet Indian Reservation
in 1965

FIRST NATIONAL BANK of BROWNING
BROW NING, MONTANA

Malcolm E. Holtz, prominent farmer
and businessman, has been appointed
to the board of directors of the First
National Bank of Great Falls.
Mr. Holtz served for six years as a
director of the Helena board of the
Federal Reserve Bank of Minneapolis.
Also, at the First National Bank,
Irving M. Monsos has been promoted
from assistant vice president and as
sistant trust officer to vice president,
also retaining his duties as assistant
trust officer.

jL.

Computer Installed at Billings
A Burroughs B170 has been installed
at the First National Bank of Bill
ings, according to Fred Marble, Jr.,
president of the bank. The system is
the Burroughs Corporation’s entry
into banking in Montana with its com
puters.

-V

Officer Changes
The following officer changes have
been announced by the First Chou
teau County Bank of Fort Benton;
J. H. Moorse, formerly vice president
and cashier, has been named president;
Norris E. Hanford, a director, was
named vice president; S. E. McSweeney is cashier, and James E.
Cowen and L. C. Siebnaler are assist
ant cashiers.

N o r th w e s t e r n Banker, June, 1965

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Federal Reserve Bank of St. Louis

Montana News

You 1171#
See Them
Nioutaua Courent iou
HE following metropolitan bank
ers, service and equipment firms
have indicated they will be attending
the Montana Bankers Association’s an
nual c o n v e n t i o n at Jackson Lake
Lodge, June 24-26.

Billings
First National Bank: Fred Marble,

Jr., president, and A. F. Winegardner,
Jr., vice president.
Midland National Bank: John E.
Tenge, president, and F. S. Webb, vice
president.
Security Trust & Savings Bank: O.

M. Jorgenson, chairman, and R. M.
Waters, president.
Butte
Metals Bank & Trust Company: F.

E. Lienemann, vice president.
Chicago
American National Bank & Trust
Company: W. B. Aldrich, assistant

vice president.

the

Anderson, assistant vice president, and
John M. Johnson, assistant cashier.
New York
Chase Manhattan Bank:

D. J.
Dundas, director; F. C. Hedger, presi
dent, and R. E. Lee, assistant vice
president.
Great Falls National Bank:

Los Angeles
Security-First National Bank: James

C. Barrett, Jr., vice president.

Alden K.
Small, assistant vice president.
First National City Bank: Daniel
C. deMenocal, vice president.
Irving Trust Company: Donald C.
Jackson, vice president.
Manufacturers Hanover Trust Com
pany: Carl Carlson, assistant vice pres

ident.

Minneapolis
National Bank:

George S.
Henry and Charles K. Skinner, Jr.,
vice presidents, and Edward L. Kalafat, assistant cashier.
Marquette National Bank: R. W.
Crouley, vice president, and Avery G.
Fick, assistant vice president.
Midland National Bank: Douglas M.
Johnson, vice president.
First

National City Bank of Minneapolis:

C. Bernard Jacobs, executive vice pres
ident.
Northwestern National Bank: Philip
B. Harris, senior vice president; Keith
M. Barnett, vice president; Donald M.

Morgan Guaranty Trust Company:

S. Griffin McClellan, assistant treas
urer.
St. Paul
American National Bank & Trust
Company: J. F. Nash, president, and

R. E. Sipple, vice president.
First National Bank: W. L. Ross,
vice president, and D. W. Buckman,
vice president.
Stock Yards National Bank: L. M.
Broom, president.
San Francisco
Bank of America: H. O. Evanson,

vice president.

Continental Illinois National Bank
& Trust Company: Gerald K. Berg

man, assistant cashier.
First National Bank: Clarence E.
Cross, Jr., assistant cashier.
Denver
Central Bank & Trust Company:

George V. Janzen, vice president.
Denver U nited States National
Bank: John Hershner, senior vice

SECURITY

president, and Don Ferrel, vice presi
dent.
First National Bank: Royce B.
Clark, assistant vice president, and
Phillip J. Hogue, assistant cashier.

T R U S T 8c S A V I N G S

BANK

Great Falls
First National Bank: Adrian McLel-

B IL L IN G S , M O N T A N A

lan, president, and L. C. Terrett, vice
president.

Resources o v e r $ 6 0 ,0 0 0 ,0 0 0

C g r e e tin g â in

A dvan ce!

Serving Montana. W yom ing and Western North Dakota with
Prompt and Careful Correspondent Service.
Member Federal Deposit Insurance Corporation
Member of Federal Reserve System

Another pleasant
MBA Convention
is in prospect
BILLINGS STATE BANK
BILLINGS, MONTANA
Member FDIC

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Federal Reserve Bank of St. Louis

G r e e t i n g s t o th e 44O ffic ia l F a m i l y 55 o f t h e M o n t a n a
B a n k ers!

Our Congratulations on an excellent Convention
Program.
<Z7

The

~ l(a lw n a l S a n k
GLENDIVE, MONTANA

N o r th w e s t e r n Banker, June, ¡ 9 6 5

Montana News
Bank of California: Irving W. Dan

ielson, vice president.
Wells Fargo Bank: Albert W. Lar

sen, vice president.
Seattle
Seattle-First National Bank: Arthur

F. Bittrick, vice president, and Rich
ard G. Jaehning, assistant vice presi
dent.
Bank Equipment and Other Firms
Diebold, Inc.: R. L. Schutt, division

manager, and Charles Miller, repre
sentative.
National Fidelity Life Insurance
Company: Merlin H. Menk.
St. Paul Insurance Companies: John

W. Daniel, state agent.

Russell Mousseau
Russell Mousseau died suddenly last
month in Havre following a heart at
tack. He was president of the First
National Bank at Havre and a 50-year
member of the Montana Bankers Asso
ciation.

Takes Bank Post
John A. Brandvold, assistant vice
president of the Montana Bank in
Great Falls, has resigned and is now
vice president and director of the
Citizens Bank of Choteau.
Mr. Brandvold moved to Great Falls
in 1955 after being with Northwest
Bancorporation banks in Minot and

Grafton, N. D., and Havre and Lewistown in Montana.

Bank to Open
The new Bank of Columbia Falls
building is nearing completion and a
grand opening is scheduled for early
June. J. G. Edmiston is president of
the bank.

To Head Washington Bank
K.
C. Brown, assistant vice presi
dent of the First National Bank of
Great Falls, has resigned to accept the
position of president of the newly or
ganized Bank of the West at Bellevue,
Wash. A. O. McLellan, president, in
making the announcement noted that
Mr. Brown had been with the First
National Bank since he graduated
from college in 1949.

NABW Conference in Billings
The 1965 Northwestern Regional
Conference of the National Association
of Bank Women, Inc., will be held in
Billings June 11
to 13, at t h e
Northern Hotel.
Mrs. Kay Mac
Donald, s pe c ial
r epr e se nt at iv e ,
S e c u r i t y T r ust

Your
Convenience

and

Business .

Savings

Bank, Billings, is
the regional vice
p r e s i d e nt of
NABW f o r t h e
MRS. K . M a c D O N A L D
Northwestern Re
gion. Mrs. Theo K. Bartschi, executive
vice president, The First State Bank,
Shelby, is chairman of the three-day
conference. Women banking officials
from Montana, Oregon, Idaho, Wash
ington and Alaska will attend the
meeting.

Is Our

And your Convention is our pleasure, affording us an
other opportunity to w e lc o m e our grow ing circle o f
friends and custom ers.
W e lc o m e

B an k ers to the

Jackson Hole Country.

ÉK

V a

cation Land of the West.

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-a p E S ii

AND

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TRUST

COMPANY

W YOM ING

...^

CHEYENNE

TheJacksonState Bank
Jackson, Wyom ing

M ember Federal D eposit Insurance Corporation

o r th
w e s t e r n Banker, June, 1965
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Member FD IC

if i n n i n f f M e e t i n g i n •M ttc h .s o n l i t t l e . •I n n e

R. E. B R Y A N S

R. L. F E R RI L

C. W . T O W

57th annual convention of the Wyoming Bankers
T HE
Association will be held at Jackson Lodge, Moran,
Wyoming, June 10-12. Presiding at all the business ses
sions will be WBA President Robert E. Bryans, executive
vice president of the First National Bank of Casper.
Serving with him this past year have been Robert L.
Perril as vice president, and William Engstrom as secre
tary. Mr. Ferril is vice president of the Wyoming Bank
and Trust Company, Buffalo. Mr. Engstrom is assistant
cashier, Rawlins National Bank, Rawlins. Vernon E.
Bower, vice president at the First National Bank, Worland, has been treasurer the past year.
The convention starts with a social hour and indoor
picnic in the hotel convention area Thursday evening at
5:00 p.m., followed by dancing. The complete program
follows:
Thursday, June 10

P.M.
5:00-6:30 Social Hour (casual clothes, indoors).
6:15 Indoor Picnic (hotel convention area).
Dancing.
Friday, June 11

A.M.
9:30

Call to Order—Robert E. Bryans, president, W y
oming Bankers Association and executive vice
president, First National Bank of Casper.
Address of Welcome—Harry Barker, owner, Circle
H Ranch, Moose Wyoming.
President’s Address and Annual Report—Robert E.
Bryans.
“Observations on the American Economy”—Clar
ence W. Tow, senior vice president, Federal Re
serve Bank of Kansas City, Mo.
“ Public Land Laws as They Relate to the Livestock
Industry of 1965”—Joe M. Donlin, rancher, Casper,
Wyo.

P.M.
12:30 Ladies’ Luncheon.
12:30 Men’s Luncheon.
1:30 Call to Order—Robert E. Bryans.
“The Long and Short of Banking Today”—Roger

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R. A. L Y O N

1 0 - 1 2

C. W . JAR VIS

E. C. H O F M A N N

A. Lyon, vice president, The Chase Manhattan
Bank, New York.
“ So—You Have a Problem?”—Charles W. Jarvis,
D.D.S., San Marcos, Tex.
“Civil Rights Law—Exceptions”—Edward C. Hof
mann, senior vice president and cashier, Central
Bank and Trust Company, Denver.
5:30 Social Hour.
7:00 Banquet.
8:00 Address—Dr. John T. Fey, president, University
of Wyoming.
Saturday, June 12

A.M.
8:00

9:15

Peeps (Past Presidents’ ) Breakfast.
Call to Order—Robert E. Bryans.
Auditing Committee Report—John E. McNellis,
president, Saratoga State Bank.
Resolutions Committee Report—Del Crouse, presi
dent, American National Bank of Riverton.
Legislative Committee Report—H. F. Esmay, chair
man of the board, Stockmens Bank, Gillette.
Other Committee Reports.
Report of Executive Council, A.B.A. — John W.
France, president, The Rawlins National Bank.
Association Business—Robert E. Bryans, president,
Wyoming Bankers Association.
Nominations—Wayne F. Mesenger, president, First
State Bank, Cody.
Election of Officers:
American Bankers Association.
Wyoming Bankers Association.
Installation of Officers.
Adjournment.
Note: Session confined to Association business to
adjourn at approximately 10:30 a.m. Association
members and guests urged to attend.
Following the regular convention session, there
will be a meeting of the Executive Council and
newly elected officers of the Wyoming Bankers
Association. All members of the Association are
invited to attend.— End.
N o r th w e s t e r n Banker, June,

1965

Wyoming News

Denver
Central Bank & Trust Company: A.

T h e y W ill A tte n d
W y o m in g M e e t in g

Asborno, senior vice president; E. C.
Hofmann, senior vice president and
cashier, and George V. Jansen, vice
president.
Colorado National Bank: William J.
Fleming, assistant cashier.

HE following metropolitan bank
ers have indicated they will be at
tending the Wyoming Bankers Associ
ation’s annual convention at Jackson
Lake Lodge, June 10-12.

Denver United States National Bank:

Ray Harper and Don Ferrel, vice pres
idents.
First N ational Bank: Carrol L.
Stubbs, senior vice president, and
James R. Morris, vice president.

Billings
First National Bank:

Harold E.
Kinsley, vice president; Burnard M.
Kennedy, vice president and cashier,
and Miss Ida Mae Sessions, auditor.
Security Trust & Savings Bank: E.
Burton Maynard, vice president, and
James H. Nicholson, Jr., assistant
cashier.

Kansas City
City National Bank & Trust Com
pany: Dale R. Ainsworth, executive

vice president, and George W. Sher
man, assistant vice president.
Commerce Trust Company: John T.
Fowler, vice president.

Casper
National Bank: Jackson

F.
King, president; Warren F. Perkins,
vice president, and Robert E. Bryans,
executive vice president.
Wyoming National Bank: R. E. Bar
ton, president; Max F. Stevens, vice
president, and A. F. Haskey, vice
president and cashier.
First

Lincoln
First National Bank & Trust Com
pany: Dale Shoemaker, vice president,

and Les Curran, assistant vice presi
dent.
Minneapolis
Midland National Bank: Douglas M.

Cheyenne
First National Bank: B. R. Weber,

New York
Chase Manhattan Bank: Roger A.

Chicago
American National Bank & Trust
Company: William B. Aldrich, assist

Lyon, vice president, and John S. Hejinian, second vice president.
First National City Bank: Daniel C.
deMenocal, vice president.
Irving Trust Company: Donald C.
Jackson, vice president.

ant vice president, and C. C. Kuning,
consultant.
First National Bank: Raymond V.
Dieball, assistant cashier.

Manufacturers Hanover Trust Com-

G ood

P la c e

B u s i n e s s 99

Check . . . FIRST OF CASPER for Credit In
formation, Collections, Transit Items and All
Correspondent Services.

FIRST NATIONAL BANK OF CASPER
Established 1889

Member F.D.I.C.

rth w e s te rn Banker, June, 7965
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vice

Omaha
First National Bank:

C. K. Voorhees, E. T. Tanner, and D. R. Ostrand,
vice presidents; M. F. Aegerter, assist
ant vice president.
Omaha National Bank: Jack Shonsey, executive vice president; Robert
Johnson and Fred Douglas, vice presi
dents.
United States National Bank: E. W.
Lyman, president; Wayne M. Thorndyke, vice president, and Howard W.
Nielsen, assistant cashier.
San Francisco
Wells Fargo Bank: Albert W. Lar

sen, vice president.

Refurnish Bank Quarters
Vern Eastman, executive vice presi
dent and cashier of the First National
Bank in Thermopolis, reports comple
tion of the refurnishing of the bank
quarters. Several years ago the bank
remodeled the quarters and this was
the final step in this long-range plan.

fë a w lin ô ,

Elects New Director
Mrs. P. W. Metz has been elected to
the board of directors of the Security
State Bank of Basin, according to
bank President Del Crouse. Mrs. Metz
fills the vacancy created by the death
of her husband.
Mr. Crouse also announced the res
ignation of L. M. Applegate as cashier.

Hold Credit Conference

BOB BRYANS s a y s :
Is

assistant

Johnson, vice president.

vice president, and Don F. Mahoney,
senior vice president.

“ C a sp er

Carl Carlson,
president.
pany:

^ yòrop

we are celebrating our

DIAMOND JUBILEE

An installment credit conference
was held last month in Riverton un
der the auspices of the installment
loan committee of the Wyoming Bank
ers Association. Robert E. Hunter,
assistant vice president of the First
National Bank of Riverton, is chair
man of the committee.
Fourteen Wyoming banks were rep
resented at the one-clay meeting and
plans are to make the conference an
annual event.
Speakers included LeRoy Perkins,
assistant vice president of Security
Bank & Trust Company, Casper; Mar
vin Werve, vice president of The Oma
ha National Bank; Robert Jaynes, as
sistant vice president of the Denver
U. S. National Bank, and John Reich,
assistant vice president of the Nation
al State Bank of Boulder, Colo.

Resignation at Cheyenne
oí

Rawlins
MemberF0IÇ

V 'remium

Service lo *Uiâitorô ”

Ellsworth A. Handy has resigned as
president of the American National
Bank effective June 1. He had been
chief executive officer since November

Wyoming News
1, 1964, when he succeeded R. J. Hof
mann.
Mr. Handy joind the American Na
tional in September, 1964, when Royal
Properties, Inc., purchased controlling
interest in the bank. He had been
with Harris Trust and Savings Bank
in Chicago for 25 years.
Controlling interest in the Ameri
can National Bank was recently pur
chased by a group of southwestern
bank executives and businessmen.
Also announced was the election of
W. G. Bagley as a vice president of the
bank. He was formerly an assistant
vice president with the Mercantile
National Bank of Dallas, Tex.

Opening at Douglas
The First National Bank of Douglas
held its grand opening last month.
Refreshments were served and tours
of the building were conducted, accord
ing to J. Tom Spencer, president of the
bank. The new bank is capitalized at
$300,000.

NABAC Elects
Larry Day, vice president of the
First National Bank of Riverton, was
elected president of the Wyoming
chapter of NABAC at the organiza
tion’s annual convention last month
in Casper.
Other new officers are Ray Bower,
Jr., cashier, First National Bank, Worland, vice president; Jerry McKibbin,
assistant cashier, Cheyenne National
Bank, secretary, and Vern Smith, cash
ier, University National Bank of Lara
mie, treasurer.

Joins Lander Bank
Floyd Lower has been elected a di
rector, vice president and trust officer
of the Lander State Bank. Prior to
joining the bank in April, Mr. Lower
had been with the First National Bank
of Lander for five years.

Feature of the conference was an
address by Neil F. Roberts, president
of the Denver U. S. National Bank.
James G. Peterson, president of J. M.
Dain & Company, also spoke to the
group.

Holds Open House
The First National Bank of Pinedale
marked the completion of a new bank
building with an open house recently.
A beautiful day combined with the
attractive new building to fill the bank
most of the day with interested people
from the Pinedale community.

Completes Remodeling
The Stockmens Bank at Gillette has
completed an extensive remodeling
project according to Howard Esmay,
executive vice president of the bank.
The basement of the bank was com
pletely renovated. All bookkeeping
processes are now in the basement. A
comfortable directors’ room was also
included.

Casper Bank Sold
Announcement was made last month
by Ralph E. Barton, president of The
Wyoming National Bank of Casper,
that a substantial block of stock in the
bank had been acquired by Wyoming
Financial Services, Inc., a Wyoming
corporation.
The principal investor in Wyoming
Financial Services is Minnesota Enter
prises, Inc., a Minneapolis-based Com
pany, founded in 1872, which is listed
on the New York Stock Exchange.
Although directors and officers of the
Minnesota Company actively serve as
directors and officers of The Marquette
National Bank, The Northwestern Na
tional Bank of Minneapolis, and The
First National Bank of St. Paul, the
Wyoming National Bank will preserve
its status as an independent Wyoming

bank. Mr. Barton said that present
directors and officers will continue to
serve the bank.
Carl R. Pohlad, president, Marquette
National Bank of Minneapolis, and a
Minnesota Enterprises director, has
been named president of Wyoming Fi
nancial Services.
Daniel Feidt, president, Minnesota
Enterprises, is vice president of the
new corporation, and William H.
Brown, Casper attorney, is secretarytreasurer.

Release State Bank Report
State Bank Examiner Norris E.
Hartwell of Cheyenne has released the
annual report on the condition of
state banks in Wyoming.
Total liabilities and capital accounts
for all state banks as of December 30,
1964, was $176.4 million, compared to
$167.8 million at the end of 1963.

Receives Businessman Award
Charles M. Smith, president of the
First National Bank of Thermopolis,
recently was presented with the Uni
versity of Wyoming’s distinguished
businessman award. Making the pres
entation were Clifford P. Hansen, gov
ernor of Wyoming, and Dr. John T.
Fey, president of the University.

Announce Building Plans
George Cooke, president of the
American National Bank of Powell,
announced recently that plans have
been completed for a new building for
the bank. Construction will start this
fall.
The new building will be located on
property currently being used for the
bank’s parking lot.
Bid letting is scheduled for Septem
ber 1 with completion estimated for
September, 1966.

Lander Bank Elects
Art Peterson has been elected vice
president of the First National Bank
of Lander, and Bruce Armentrout has
been named assistant cashier, accord
ing to a recent announcement by Rob
ert W. Finkbiner, president of the
bank.

J'AjoifL rLjßW t, J'hismdòu aL

I IISSI N A T I O N A L B A N K
AT THERMOPOLIS, W YOM ING

Credit Conference at Casper
About 175 bankers from Wyoming
and surrounding states attended the
11th annual Wyoming Bankers Credit
Conference in Casper. Dan Ferguson,
vice president and cashier of Security
Bank and Trust Company, headed the
local committee in charge of the event.

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Federal Reserve Bank of St. Louis

.'o n v &

n iim L

^ jh stsd im

^ !

W e look f o r w a r d to seeing all W y o m i n g
hankers at this year’ s convention, June 10-12.
VERN EASTMAN
Executive Vice-President
N o r th w e s t e r n Banker, June,

1965

No problem

istoo small to receive
our personal attention
WHEN Y O U ’ RE SWAMPED

with service problems, call on our staff o f specialists here at Denver U. S.
And these men— Don Ferrel, Kent Olin, George Alff and Ray Harper—
will dive in and come up with the answers for you.
Telephone 244-8811.

' th a t's th e b a n k f o r m y m o n e y ! "

MEMBER
F

DENVER U.S.
N A T I O N A L

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Federal Reserve Bank of St. Louis

D E N V E R U .S . C E N T E R

D e n v e r, C o lo r a d o

B A N K

National Bank of Dallas, and General
Robert J. Wood, director of military
assistance, assistant secretary of de
fense, International Security Affairs,
Washington.
Members of the American Bankers
Association from Colorado met during
the initial session and elected Carl G.
Breeze, president, Bank of Kremmling,
to serve on the ABA nominating com
mittee this year. Leland L. Reinecker,
executive vice president, Bank of Bur
lington, was elected as alternate.

Joins Bank

NEW OFFICERS of
L. Rice, pres., First
pres., Colorado Bank
pres., Denver United
Denver.

the Colorado Bankers Association are, from le ft: President— Paul
Natl. Bank of Loveland; 2nd Vice President— J. H. Macdonald,
& Trust Company, La Junta; 1st Vice President— Neil R. Roberts,
States Natl., Denver., and Secretary-Treasurer— Janies C. Scarboro,

E lect Puni E. Rice tu
H eat! Colorado Rankers A ssn .
tional Bank. Succeeding him as sec
ond vice president was J. H. Macdon
to the annual convention of the Colo ald, president, Colorado Bank and
rado Bankers Association last month. Trust Company of La Junta.
E.
L. Bacon, president of the Colo J. C. Scarboro was re-elected execu
rado Bankers Association, and presi tive manager of the association and
dent of the United States Bank in was honored for his completion of 25
Grand Junction, presided over the con years in that post.
George Janzen, vice president, Cen
vention. More than 700 registered for
tral Bank & Trust Company, Denver,
the three-day event.
Elected to head the CBA during the won the annual golf tourney on open
coming year was Paul L. Rice, presi ing day. The annual convention ban
dent, First National Bank, Loveland, quet was held on Friday evening with
who will serve as president during well-known TV performer Liberace
providing the entertainment.
1965-66.
Convention speakers included CBA
Moving up to first vice president of
Resident E. L. Bacon; Dr. A. A. Smith,
the association was Neil F. Roberts,
president, Denver United States Na vice president and economist, First
beautiful Broadmoor Hotel in
T HE
Colorado Springs was again host

LEFT— Olney D. Newman, sr. v.p., 1st Natl., Kansas City; J.
H. Macdonald, pres., Colorado Bank & Trust Co., La Junta, and
Melvin J. Roberts, pres., Colorado Natl., Denver. RIGHT— Paul

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Federal Reserve Bank of St. Louis

Robert B. Newman has been elected
vice president and trust officer of First
National Bank of Colorado Springs.
He has operated his own investment
firm since 1928.
In other news from this bank, Rus
sell L. Truitt, vice president and mort
gage loan officer of First National, has
been elected a director of the bank.

Appointed to Fed Board
Armin B. Barney, chairman of the
Colorado Springs National Bank, has
been named to the board of directors
of the Denver branch of the Federal
Reserve Bank of Kansas City. He will
fill the unexpired term of the late Elwood M. Brooks, chairman of the Cen
tral Bank and Trust Company of Den
ver, who died in February.

Colorado National Seminar
Colorado National Bank held its
fifth Trust Seminar at the Broadmoor
Hotel last month on the day preceding
the Colorado Bankers Convention, ac
cording to Melvin F. Roberts, presi
dent of the bank.
Harold S. Kinney, senior vice presi
dent and trust officer of Colorado Na
tional, presided over the meeting.
About 100 bankers attended.
Colorado National also held the first

Howes, v.p., American Natl., Denver; Clarence La Nier, Boulder
Natl.; J. E. Montague, pres., American Natl., Denver, and
Charles L. Sayre, pres., Natl. State Bank, Boulder.
N o r th w e s t e r n Banker, June, 7965

Colorado News

New Addition to Pueblo Knnh

FIRST NATIONAL BANK o f Pueblo, Colo., recently opened its doors in new and
expanded quarters. According to Robin B. Bailey, president, modern convenience and
com fort have been incorporated in the new building, the old portions o f the building
have been remodeled and the new portions have been planned to harmonize and blend
with the existing building. Architects’ model illustrates the $2yz million building pro
gram which has been completed. At left is the new wing and 250-car parking building
which blends with the original bank, the Thatcher Building, at right.

of a series of seminars on basic eco
nomics and analyses of business
trends for top executives of Denver
and Colorado companies.
About 35 presidents, executive vice
presidents, and managers attended the
first seminar at the Colorado National
Bank building in Denver.

School of Banking Set
The 15th annual Colorado School of
Banking will be conducted August 820 at the University of Colorado.
About 156 bank representatives from
13 states are expected to attend the
100 class sessions of first-, second- or
third-year study in the school.
The school is sponsored by the Colo
rado Bankers Association and the Uni
versity. Faculty is made up of four
university professors and 15 bankers,
14 of them from Colorado.

Joins Personnel Firm
Homer McNeil has been appointed
to manage the banking division of
Placements, Inc., Denver.
Mr. McNeil brings over 30 years of
banking experience to the Denverbased recruiting firm. His banking ca
reer started with the Ames Trust and
Savings Bank in Ames, Iowa, where
he rose from bookkeeper to cashier
and also served as bank director.
He came to Denver in 1956 and, after
a short period as vice president and
cashier of the Rocky Mountain Bank
in Lakewood, he joined the Martin
Company and was promoted to the
position of company cashier.

Boulder Bank to Join
Shareholders of the Denver U. S.
Bancorporation, Inc., learned recently
that Mercantile Bank and Trust Corno rth
w es tern Banker, June, 1965
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pany, Boulder, Colo., has announced
its intention to join the Bancorp. Mer
cantile Bank, one of six banks in the
Boulder community, has deposits of
approximately $15 million. Officers,
staff and directors of the Mercantile
Bank would retain their present posi
tions and responsibilities.
Other member banks presently in
clude Denver U. S. National Bank,
First Bank of Aurora, and Arapahoe
County Bank.
“Final approval of Weld County
Bank of Greeley as a fourth member
of the holding company is now pend
ing action by the board of governors
of the Federal Reserve System,” said
Roger D. Knight, Jr., Bancorporation
president.

Officers Named
J. E. Montague, president of the
American National Bank, has an
nounced the appointment of Edward
F. Arndt, Jr., and Richard W. Graft as
assistant trust officers.

Elects New Chairman
Denver business pioneer Joe Alpert,
who has been chairman of the board
of Guaranty Bank and Trust Company
since the bank’s opening in 1955, has
retired from that post. Succeeding
him as chairman is Herman Horwich,
also a Guaranty founding director.

Changes at Central Bank
The Central Bank and Trust Com
pany has named several new officers
and promoted others in recent weeks.
Marvin F. Owens, who has been
with the bank for 11 years, was pro
moted from vice president to senior
vice president. James Osbourn and
George Janzen were promoted from

assistant vice presidents to vice presidents, and S. T. Mason Frey was elect
ed a vice president in the bank’s com
mercial loan department.
Mr. Janzen is a member of the cor
respondent bank department and has
been with the bank since 1951. He
works in both South Dakota and Ne
braska along with other areas for the
bank.
At a more recent meeting of the
bank’s board of directors, the follow
ing changes were approved:
Keith Lindeman, the bank’s comp
troller, was promoted to vice president
and comptroller; John Diedrich was
promoted to vice president from as
sistant vice president, and William H.
Echelmeyer, the bank’s personnel director, was elected assistant vice presi
dent.

-4'

President Hesigns
John H. Reid has resigned as presi
dent of the Midtown National Bank in
Pueblo. Harry W. Hoth, a member of
the board, has been named non-active
president. Mr. Hoth is mayor of Colorado Springs.

Five Promotions
Promotion of five officers of the Den
ver U. S. National Bank has been an
nounced by bank President Neil F.
Roberts.
N. Berne Hart advances from cash
ier to vice president; David H. Hender
from assistant vice president to vice
president; William P. Lober from as
sistant vice president to comptroller;
Robert W. Merrick from assistant vice
president to cashier; and H. K. Rich
ardson to trust officer.

Named Vice President

Jim Diez has been named vice presi
dent of Metropolitan National Bank in
Denver. He was with Mercantile Bank
and Trust Company in Boulder and
prior to that was co-owner of a bank
at Kenesaw, Neb.

Elect AIB President
Charles A. Schley of the Colorado
National Bank is new president of the
Denver AIB chapter.

Elected Cashier
Ralph D. Williams, formerly vice
president of the Englewood State
Bank, has joined the Guaranty Bank
& Trust Company, Denver, as cashier,
according to Victor V. Hawkins, the
bank’s president.

Application Rejected
Application for a charter for a na
tional bank to be located in Lyons
has been disapproved by the Comp-

y o u r p i l o t in C a l i f o r n i a U C B d o e s a l i t t l e m o r e f o r y o u .

Trust your correspondent banking needs to us. W e know the financial
main channels, as w ell as the backwaters. From our local offices in every
major com m unity throughout the state, we can reach out to service your
every req u irem en t-b e it large or small. Alertness, accuracy, d iscre tio n these are the qualities our crew is drilled in. W e run a tight ship. Next
time you need home port knowledge away from home, make a signal.
Let us show you the m any w ays U C B can do a little m ore for you.
TH E B A N K THA T D O E S A L IT T L E M O R E F O R Y O U

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•

U N IT E D
C A L IF O R N IA
BANK
Capital Funds over $233,000,000
Resources over $3,000,000,000
Los Angeles Headquarters: 600 South Spring Street
San Francisco Headquarters: 405 Montgomery Street

O FFIC E S B O R D E R TO B O R D E R T H R O U G H O U T C A L IF O R N IA

N o r th w e s t e r n Banker, June, 7965

Colorado News

troller of the Currency. Leo Hill was
the correspondent for die proposed
bank.

Joins Denver Bank
John F. Falkenberg, veteran Denver
home builder, has joined the staff of
the First National Bank, according to
Joe Liller, Jr., senior vice president.
Mr. Falkenberg will work in the real
estate mortgage loan department.

Sell Bank
Controlling stock interest in Den
ver’s 17th Street National Bank was
sold last month to a Texas organiza
tion. The sale occurred when the
First National Bank of Dallas sold
stock it held as collateral for a fore
closure loan made to Earl L. Kramer,
former president of the Denver bank.
Operation of the 17th Street Nation
al will not be affected by the sale and
it is hoped that the controlling interest
can soon be repurchased by Denver
investors.

Aurora Bank Director
Verner H. Crayne has been elected
a director of First Bank of Aurora. He
has been with J. C. Penney Company
since 1936 and manager of its Aurora
store since 1957.

Family Finance Forum
First Bank of Brighton held its first
family finance forum last month, ac
cording to bank President Leslie L.
Sayre.

Merger Planned
Plans for the consolidation of two
Denver banks, Colorado State Bank
and Citizens Savings Bank, have been
announced. Directors of both institu
tions have voted approval and applica
tions have been made with the proper
authorities. Name of the resulting
bank will be the Colorado State Bank
of Denver.
Elwood M. Kullgren, president of
Colorado State Bank, will be president
of the new bank. Ralph E. Nelson,

president of Citizens Savings Bank,
and Glen B. Clark, senior vice presi
dent of Colorado State Bank, will be
senior vice presidents of the consoli
dated bank.

Elect Two Directors
Two prominent Denver business
leaders have been named to the board
of directors of The First National
Bank of Denver. They are:
Robert L. Compbell, vice president
of Safeway Stores, Inc.

Offers Bookkeeping Plan
The Colorado National Bank has in
augurated a new computerized and
automated bookkeeping system for
doctors and dentists in the Denver
area, according to Melvin J. Roberts,
president of the bank.
The system will transmit data di
rect for the office to the computer cen
ter at the bank, utilizing regular tele
phone lines.

Notes 60th Year

R. L. C O M P B E L L

W . C. H U D G IN S

W. Coles Hudgins, executive vice
president of the Mountain States Tele
phone and Telegraph Company.
Their appointments fill vacancies on
The First board caused by the deaths
of Harry W. Farr and Lafayette M.
Hughes, Jr.

Picks Board Members
Election of three Denver bank presi
dents—Walter C. Emery of the Bank
of Denver, Elwood M. Kullgren of
Colorado State Bank and William G.
Griffith of Mountain States Bank—to
the board of directors of the First
Trust Corporation was announced re
cently.

Holds Celebration
The Arapahoe County Bank of Little
ton last month held a week long cele
bration observing the completion of a
$100,000 expansion and remodeling
program and the seventh anniversary
of the bank. W. G. Johnson is presi
dent of the bank.

ACCIDENT, SICKNESS and HOSPITAL
INSIJRANEE AT COST!

Adolph C. Kunsmiller, chairman of
the board of the American National
Bank, recently completed 60 years in
banking, all with the American Na
tional. Mr. Kunsmiller was personal
secretary to Godfrey Schirmer when
he organized the German-American
Trust Company, predecessor of the
American National, in 1905.
He moved through the various de
partments of the bank and was ap
pointed president in 1949. In 1957 he
was elevated to chairman.

New Vice President
Don Carney, president of Security
National Bank in Denver, has an
nounced the appointment of John N.
Cummings as a vice president of the
bank. Mr. Carney was formerly vice
president of Denver U. S. National
Bank.

Promotes Three in Denver
Promotions of three to officer posi
tions at the 17th Street National Bank
in Denver has been announced by
President Steve McNichols.
Trexel C. Warren has been named a
cashier. Mrs. Charlotte Duran and
Philip E. Trainor were advanced to
assistant cashiers.

Boulder Appointments
At the Boulder National Bank, C. V.
LaNier, president, has announced the
appointment of David A. Belcher as
assistant cashier and installment loan
officer. He has been with Household
Finance Corporation.
Also appointed at Boulder National
was Frank Horton to the post of vice
president. He was a vice president of
Jefferson County Bank in Lakewood.

Bankers are Select Risks and we have special coverage
designed for Bank Men and W om en.

Write for Application

and Information.

Minnesota Commercial Men’s Association
2550 Pillsbury A ve. S.

o r t h w e s t e r n Banker, June, J965
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Minneapolis 4, Minnesota

Joins Lakewood Bank
J. Robert Young has been appointed
an assistant vice president of First
Westland National Bank in Lakewood.
He was an assistant bank examiner
for the FDIC in Kansas City, Mo.

Before y o u r g ro w th ideas become expansion plans . . .

READ

THIS

The ideas in this book, and the man who wrote it,
have helped dozens of Midwest bankers make
their expansion programs more profitable.
City National’s Bob Hoffman qualifies as an ex
pert on bank buldings of all sizes. He’s had ex
tensive first-hand experience with bank facilities
— both with the City and with numerous other
banks. He knows equipment, people, and the laws
affecting bank expansions. So he’s put his ideas
and experiences down in writing for you in this
helpful book.

BOOK!

Bob can keep a secret, too. A call or conversation
with him won’t unleash upon you a drove of
equipment salesmen, builders and architects— or
premature and unprofitable publicity.
And there’s no obligation. Like so many distinc
tive services the men from the City offer cor
respondent banks, this one doesn’t cost you a
penny extra. Write or call Bob Hoffman (even
if you’re not a City National Correspondent) at
our Main Office, 10th and Grand Ave, Kansas
City, Missouri 64141. Telephone: 816 BA 1-6800.

A n hour with this book and you will realize more than ever th at. . .

Its g re a t to g ro w w ith th e

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Federal Reserve Bank of St. Louis

Kansas City, Missouri
MEMBER F.D.I.C.

...th e one Kansas City hank that has everything
N o r th w e s t e r n Banker, June, 7965

AT HOME ON THE R A N G E
. . . or in the feedlot, or the buyer’s pen — wherever cattle are raised,
bought or sold. You can deal with the men from The U. S. National with
confidence. Their knowledge, like yours, comes from experience.
Let them work with you to develop finan
cing programs tailored to fit the needs of
your customers.
Many over-line loans can be handled over
the telephone. Call U. S. 341-8765.

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

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th w e s t e r n Banker, June, J965
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Federal Reserve Bank of St. Louis

Legislative
nom inate Nebraska
Convention P rogram

By BEN HALLER, JR.
NEW PRESIDENT o f the Nebraska Bankers Association, W.
W. Cook, Sr. (center), pres., Beatrice Natl. B&T, and Vice Pres
ident Thomas J. Aron (righ t), pres., Crete State, are con
gratulated by retiring NBA president, N. T. Tiemann, pres.,
Commercial State, Wausa.

EDERAL
Fshared
the

and state legislation
limelight at the 68th
annual convention of the Nebraska
Bankers Association in Omaha last
month. More than 1,000 registrants
heard various speakers criticize fed
eral programs and proposed laws. On
the other hand, it was reported by the
association legislative committee that
all bills except one in the state leg
islature went the way NBA had hoped.
Upon concluding an outstanding
year as president of the Nebraska
Bankers Association, N. T. Tiemann
was inducted into the Past President’s
Club of the association, then immedi
ately received strong support from a
number of banker friends as a candi
date for the Republican nomination
next year for the office of Governor of
Nebraska. Upon the completion of
his convention duties we visited with
Mr. Tiemann concerning these over
tures made by his friends and it ap
peared fairly certain at press time that
he will formally announce his candi
dacy within the next 30 to 45 days.
The primary election is next spring.
Succeeding him as president of the
Nebraska Bankers Association is W.
W. Cook, Sr., president of Beatrice Na

LARRY NOTHWEHR
Associate Editor

tional Bank and Trust Company, Bea
trice. New vice president is Thomas
J. Aron, president, Crete State Bank,
Crete. Ernie T. Tanner, vice president
of the First National Bank, Omaha,
continues as treasurer. H. V. Osterberg and W. H. Osterberg continue as
executive vice president and secretary
respectively at association headquar
ters in Omaha.
Elected to the executive council for
three-year terms were: H. W. Hendriksen, vice president, First National
Bank, Fremont, representing Group 2;
A. J. Hallas, chairman, South Omaha
Stockyards National Bank, represent
ing Omaha, and Herman Brockmeier,
senior vice president, National Bank
of Commerce T&S Association, repre
senting Lincoln.
At the meeting of A.B.A. members
conducted by Nebraska A.B.A. Vice
President Harold Qualsett, president
of Farmers & Merchants Bank, Schuy
ler, the following were elected to serve
at the A.B.A. convention this fall: N.
T. Tiemann as member of the nominat
ing committee, and Lyman Stuckey,
president of the Lexington State Bank,
alternate to Mr. Tiemann.
In his president’s address, Mr. Tie

LEFT— Mrs. George Spence, whose husband is ag rep for Amer
ican Natl. B&T, Chicago; Mrs. George Cemper, whose husband
is cash., 1st Natl., Shelby; Mrs. William Kurtz, whose husband
is v.p., American Natl. B&T, Chicago, and Mrs. John Van Horne,
whose husband is pres., Van Horne Investments, Inc., Omaha.
CENTER— Dick Hahn, Jr., exec. v.p. & cash., Carson Natl.,

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Federal Reserve Bank of St. Louis

Editor
and

mann talked about problem areas in
banking. These include deterioration
in credit quality, banks owing bills
payable on a “permanent” basis, and
international balance of payments def
icit.
He said increased bank expenses re
sulting from the paying of interest on
time CD’s has forced some banks into
making marginal loans to stabilize
earnings. The direct result, he as
serted, has been a deterioration in
credit quality, causing some acute
problems in certain areas. Mr. Tie
mann said that a decision to increase
time and savings rates because a
neighboring bank has followed such
procedure is “something less than
judicious m a n a g em e n t and if in
creased expenses cannot be overcome
by extension of legitimate credit, then
management should proceed cautious
ly before increasing rates. Many bank
ers have indicated to me their desire
to reduce rates or quit the CD business
completely, but are reluctant to do so
because of the impact on deposit
growth.”
He stated further that “lack of de
posit growth and an increase in loans
has caused many banks to owe bills

Auburn; T. J. Waldo, v.p., and Glenn Yaussi, pres., both Na
tional Bank of Commerce, Lincoln; E. Earl Bailey, v.p. and
cash., Commercial Bank, Stratton, and M. R. Morgan, pres.,
First Natl., Elwood. RIGHT— Charles Brown, director, Stam
ford Bank; Arden Bruch, v.p., 1st Natl, of Kansas City, and
Charles Backer, exec, v.p., Burt County State, Tekamah.
N o r th w e s t e r n Banker, June, 1965

Nebraska News

LEFT— O. W. Johnson, pres., Bank o f Burwell; Edward W.
Lyman, pres., U. S. Natl., Omaha; Harold N. Bacon, v.p. & cash,
North Platte State Bank; Jay Bordewick, a.v.p., U. S. Natl.,
Omaha, and H. E. Blum, v.p. & cash., McCook Natl. CENTER
— Norman R. Fallesen, v.p., Farmers State, Eustis; Jens J. Jen
sen, exec, v.p., Farmers & Merchants State, Bloomfield, and

payable on a more or less permanent
basis. This should be a warning sig
nal that the procedure of bills payable
should be used only as a temporary
convenience, not as permanent policy.
The money centers of the nation are
becoming increasingly hard pressed
for deposits in order to accommodate
borrowing banks. One optimistic note
on this subject is that the bills pay
able problem is not yet of major pro
portions in Nebraska.”
Mr. Tiemann took the Johnson Ad
ministration to task for its “jawbone
exercise” in attempting to solve the
balance of payments problem and said
no permanent solution will be reached
until the Federal government comes
to grips with the problem.
The retiring president reviewed oth
er phases of association work during
the past year which showed consider
able activity and much accomplish

Richard C. Taylor, v.p., First Natl., Sioux City. RIGHT— Winton Buckley, v.p., Natl. Bk. o f Commerce, Lincoln; M. H. Moret,
cash., Farmers State, Superior; J. R. Kenner, pres., Thayer
County Bk., Hebron, and Gene C. Eaton, sr. v.p., Natl. Bk. of
Commerce, Lincoln.

ment. These include another success
ful Bank Management Conference last
June and another exceptionally strong
program planned for the 1965 school
this month; a tremendous amount of
work on a committee comprising ma
jor segments of the economy whose
goal was revision of the intangible
tax problem; attendance by all associa
tion officers at the Central State Con
ference in Minneapolis last summer;
holding 15 Regional House meetings
throughout the state to review associa
tion programs and thinking on new
activities; working with officials of the
University of Nebraska at the Chan
cellor’s request to help bring to Ne
braskans the problems of the Uni
versity, especially in the area of the
budget; establishment of the School of
Basic Banking at the Nebraska Center
for Continuing Education in Lincoln
for beginner bankers from Nebraska,

Kansas and Missouri, which drew 112
to the first week-long session.
Jack T. Conn, chairman of the
A.B.A. federal legislative committee
and chairman, Fidelity National Bank
& Trust Company, Oklahoma City,
Okla., was first guest speaker on the
program. His topic concerned “ Fed
eral Legislation in This Session of
Congress.” He said the A.B.A. has
fundamental objections to consolidat
ing the FDIC, office of the Comptroller
of the Currency and the Federal Re
serve Board into one agency as pro
posed by the Patman and Multer bills.
He said this effectively places all bank
ing under centralized control and
would soon do away with our dual
system. Suggestions have been made
by the A.B.A. to eliminate areas of
overlapping jurisdiction.
Comptroller Saxon was taken to task
again for his too liberal and arbitrary

LEFT— Seated: H. A. Dale, pres., Stockmen’s Natl., Rushville;
Irv Hesselgesser, dir., Central Bank, Central City, and F. N.
Cronin, pres., O’Neill Natl. Standing: Gene Kidder, a.v.p., and
L. Peter Marr, Jr., a.c., both with Omaha Natl. CENTER— Pipe
smokers Tom C. Cannon, v.p., Commerce Trust Co., Kansas City,

and E. B. Cosgriff, dim. of bd., City Natl., Hastings. RIGHT
— Back: F. L. Ferrell, pres., Nebraska State, Oshkosh; H. B.
Olson, pres., Lisco State, and Fred Pfaff, v.p. & genl. sales mgr.,
U. S. Check Book Co., Omaha. Front: Mrs. Olson, Mrs. Pfaff
and Mrs. Ferrell.

LE FT— Adon Jeffrey, pres., 1st Natl, of Wayne; Fred H. Doug
las, v.p., Omaha Natl.; W. P. Bernard, exec, v.p., Nebr. State
Bank, South Sioux City; H. H. Echtermeyer, sr. v.p., Omaha
Natl., and O. M. Jeffrey, dim. of bd., First Natl, of Wayne.
RIGHT— Speakers at the final session were, from left: Orrin

H. Swayze, exec, v.p., 1st Natl., Jackson, Miss.; Dr. Royce H.
Knapp, regents professor o f education, University of Nebraska,
Lincoln, and A. B. Jack Goodwin, a.v.p., Natl. Bank of Com
merce, Lincoln.

o rth
w e s te rn Banker, June, 1965
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The second you call the First, we’ll have a man on the-nm to see you.

He’ll hop on a plane, train, motorcycle or whatever it
takes to get there fast. And when he arrives, he’ll serve
you fast. With loans, securities, transist and collection
services, trusts, credit information or operational ser
vices. So call. Any time. And time us.

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Always the First to Serve you.

0 FIRST
NATIONAL
1 BANK
0 OF OMAHA

1 H ill

M em ber F ederal Deposit Insurance Corporation

IH B I
N o r th w e s t e r n Banker, June,

1965

Nebraska News
T

LEFT— Mr. and Mrs. N. T. Tiemann saw that tlieir children
were com fortably settled with Mr. Tiemann’s mother at a front
table for the annual banquet. The children, from left, are:
Mary, Amy, Lorna and N. T. “Nobby” Jr. RIGHT— Banquet

interpretations of laws r e g a r d i n g
branching in various states. Mr. Conn
said in the past two months the Comp
troller has ruled in two cases that na
tional banks can operate branches as
an interpretation of Oklahoma’s facil
ity Law.
In a resolution adopted later in the
morning, Mr. Conn was endorsed by
the Nebraska Bankers Association as
a candidate for the vice presidency of
the A.B.A. at the national convention
this fall.
Other resolutions adopted called for
uniform tax treatment of financial in
stitutions, retaining lending and in
vestment powers of S&L’s at present
levels, endorsement of U. S. Senate
File 1698 which reaffirms the Bank
Merger Act of 1960 giving regulation
of bank mergers to bank supervisory
authorities, endorsement of a volun
tary program to support the A.B.A.
Foundation for Education in Econom
ics, regulation of all branches and fa
cilities of both state and national

banks to be subject to the state law,
caution by banks when investing in
debentures and securities of compet
ing financial institutions which enjoy
special tax privileges.
H e n r y E , L e y , Nebraska director of
banking, discussed the work of his
department the past year. The most
important new program, direct veri
fication of loans and deposits, has met
with unusual acceptance by Nebraska
bankers, he stated. “No supervisor,”
Mr. Ley said, “could have received
more strength or more cooperation
than we have from bankers in Nebras
ka.”
Mr. Ley also pointed out that in a
one-day meeting with him in Lincoln,
Nebraska bankers determined the de
partment’s salary needs were about
25 per cent under the average paid to
national examiners and similar posts
elsewhere, and these men went with
him to the state budget hearing and
helped plead the case. The go-ahead
was given and the budget was in

LEFT— Seated: Gus P. Scholz, pres., 1st Natl., Falls City, and
F. Phillips Giltner, exec, v.p., First Natl., Omaha. Standing:
Donald R. Ostrand, v.p., First Natl., Omaha; Roger D. Sack,
exec, v.p., York State, and R. D. Schneider, v.p., Plattsmouth
State. CENTER— Ronald Louden, a.c., American Natl., St.
Joseph, M o.; Mrs. Edward Burke; Edward Burke, v.p. & cash..
N o r th w e s t e r n Banker, June, 7965

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speaker Hans Conried visited before dinner with Mr. and Mrs.
W. H. Osterberg (le ft) and Mr. and Mrs. H. V. Osterberg
(righ t). Bill Osterberg is secretary of the NBA and Harris
Osterberg is executive vice president o f the NBA.

creased to cover necessary pay raises.
Mr. Ley revealed that he will have
the state set up in six areas as of
July 1, each with a headquarters town
and each headquarters having a radius
of 60 miles. Examiners will travel
together from each headquarters town
to banks being examined. Reduced
operating costs should result, he said,
and banks pay for these costs.
For further details on the direct
verification program, he referred his
listeners to the article, “ In Nebraska
— Direct Verification is Working,”
published in the May issue of the
N orthwestern B anker prior to the con
vention. This was a question and an
swer interview article with Mr. Ley.
He also reported that his depart
ment has increased fidelity bond re
quirements to quite an extent for state
S&L’s and credit unions, and examina
tion procedures for these institutions
have been strengthened. Since takNEBRASKA

C O N V E N T IO N

. . .

(Turn to page 98, please)

Farmers & Merchants, Imperial, and Gilbert Tootle, sr. v.p.,
American Natl., St. Joseph. RIGHT— Richard Kurtz, a.v.p.,
South Omaha Stockyards Natl.; Benton O’Neal, a.v.p., 1st Natl.,
St. Joseph, M o.; Ernest Thayer, a.c., 1st Natl., Grand Island,
and Stanley W. Evans, 1st v.p., Live Stock Natl., Sioux City.

N*B*C MEANS “EXTRA SERVICE”

R. P. "Rod” Vandeberg
Territory # 1

L. E. "A l” Alford
Territory # 2

James "Jim ” Nissen
Territory # 3

A. C. "Jack” Holmquist III
Territory # 4

Wilbur Baack
Territory # 5

Five of our commercial loan officers, fully aware of correspondent banking needs,
travel the territories shown above in addition to our regular Correspondent
Bank officers shown below. Thus there is always someone available to assist you
quickly on any problem. Just call any of these men for assistance on banking
matters. Our phone number is Area Code 402, 477-8911.

Winton Buckley

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Gene Eaton

Tom Waldo

NATIONAL

BANKofCOMMERCE
M E M B E R : F. D . I. C .

TR U ST & SAVIN GS
L IN C O L N , N E B R A S K A

N o r th w e s t e r n Banker, June, 1965

O nia lia N e w s

for a new United States Na
PLANS
tional Bank building in the pro
posed executive park were announced
last month by Edward W. Lyman,
president.
The downtown “super block” in the
area bounded by Harney, Jackson,
Seventeenth and Nineteenth Streets is
to be rebuilt by the M-W Development
Company. (See illustration below.)
The bank signed an option to select

a site for its building “which will
contain approximately 100,000 square
feet and such additional space as the
bank may request for lease to others,”
according to M-W.
The purchase price was not dis
closed. The option provides that the
site chosen by the bank must conform
to the Executive Park master plan,
which will be provided by M-W in 120
to 130 days, it was said.

H
< >1= =)=

Howard M. Dietz has been named

iräöBQpgaflijä^

n r l-«

The exact location and building
schedule will depend not only on the
master plan but upon the availability
of the buildings now occupying the
site, Mr. Lyman explained.
“ But we do know that our new
building will be in the four-block
area,” he added. Construction costs
have not yet been determined.
He said a “complete bank” will be
constructed and that the bank’s pres
ent building at 1612 Farnam Street
“undoubtedly would be sold.”
Mr. Lyman said the bank’s present
home, with 50,000 square feet, is too
small and that parking also is needed.
Total cost of land and construction
in Executive Park is estimated at $32
million.
Mr. Lyman said it may develop that
the bank will utilize the first, second
or third floors of a new structure and
lease additional space to others.
It is possible the building will have
up to 200,000 square feet—with the
bank itself occupying about half.
If all goes well, construction could
start in 1966.

» <*

an assistant trust
officer of the First
National Bank of
Omaha. He is a
nat i ve of Papillion.
He retired from
the Navy in 1964
after 15 years of
management ex
p er i e n c e to be
c o m e associated
H. D I E T Z
wi th the Fi rst
National Bank of Omaha Trust De
partment.

MUNICIPAL AND CORPORATE BONDS
LISTED STOCKS
UNLISTED AND LOCAL STOCKS

to assistant cashier at the West Oma
ha National Bank. He joined the bank
in December, 1964.

Orders Executed on All Principal Exchanges

assistant vice
president of Chiles and Company in
vestment firm, has been promoted to
vice president. He is in charge of
buying municipal issues. He is a
brother of Ben Haller, editor of the

H. Dale Martin has been promoted

Joseph

=k =t=

Haller,

N orthwestern B ank er .

CHILES & COMPANY
Member, Midwest Stock Exchange

412 Farm Credit Building, Om aha, Nebraska 68102
Phone 346-6677 (Area Code 402)
Teletype 402 348-1040
Other Offices Located in
LINCOLN, NEBRASKA
LEXINGTON, NEBRASKA
CH AD RO N , NEBRASKA
o r tFRASER
h w e s t e r n Banker, June, 7965
DigitizedNfor
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

=1=

W. B. Millard, Jr., chairman of the

board of the Omaha National Bank,
announced the addition of $3,000,000 to
the bank’s surplus account. This
amount, transferred from the undiYOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE, VAULT AND
TIMELOCK EXPERTS

F. E. DAVENPORT & C O .
OMAHA

-4c

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Federal Reserve Bank of St. Louis

Nebraska News

vided profits account, increased sur
plus from $12,000,000 to $15,000,000.
This will provide the bank with capital
and surplus of $25,000,000, and total
capital, surplus, and undivided profits
in excess of $29,000,000.
A. J. Hallas, chairman of the South

Omaha Stockyards National Bank, ac
companied a group of Omaha residents
to the Montana Cattlemen’s Conven
tion last month.
*

In examining the early ledgers of
the First National Bank of Omaha, of
ficers discovered that 100 years ago
this spring, Barkalow Bros. Company
was organized and commenced doing
business with the bank. The firm has
been an active customer of the bank
since 1865. Today, the company has

NEBRASKA CONVENTION . . .
(Continued from page 94)
ing office a year ago, Mr. Ley has re
ceived 14 new state bank applications,
seven of them in Omaha and seven
outstate.
Hollis T. Burt, executive vice presi
dent, National Association of Super
visors of State Banks, Washington,
D. C., fired another blast at increasing

ICO retail outlets in restaurants,
smoke shops, gift shops and cigar
stands. There are 394 employees and
the payroll exceeds $850,000 annually.
over

-,f

Robert B. Friend, manager of the

computer depart
me n t f or the
United States Na
tional Bank, has
been named an
assistant cashier.
B e fo re joining
bank in March,
1964, he worked
for th re e oth er
Omaha firms, all
involved in comR. B. FR-IEND
p u t e r activities.
He is a native of Omaha and attended
Creighton University.

federal efforts to centralize bank su
pervisory control in Washington and
weaken the dual banking system. He
called for a strengthening of state
banking codes and strengthening of
state banking department staffs to do
the job right.
Henry Gramann, Jr. Chairman of
the NBA committee on legislation and
vice president, Adams State, teamed
up with William B. Brandt, NBA legis

Howard M. Johnson, operations vice
president of The Omaha National
Bank, has announced plans for estab
lishing the Central Nebraska Compu
ter Center of The Omaha National
Bank at Grand Island, Neb. This in
stallation will offer all banks in cen
tral Nebraska the use of a full com
puter operation for their bank appli
cations with the experience of The
Omaha National Bank who will oper
ate the equipment. A location in
Grand Island will be selected and the
computer will be installed and be in
operation by the fall of this year.
*

Eugene G. Kidder, assistant vice

president, Omaha National Bank, is
>

OMAHA NEWS . . .

(Turn to page 104, please)

lative representative and attorney
from Unadilla, in reviewing “ The Ne
braska Legislative Scene.” They said
there were 44 bills of concern to the
NBA and all except the one on intan
gible tax were voted on the way NBA
had hoped. Mr. Gramann discussed
the working of the legislative commit
tee itself, while Mr. Brandt went over
the specific bills of pertinent interest.
Dr. Royee H. Knapp, regents profes►

LEFT— C. W. Means, v.p., South Omaha Stockyards Natl.; K.
N. Barnard, cashier, Farmers & Merchants Bank, M illigan;
Harry Hansen, dir., 1st Natl, of Lyons; Frank Sibert, a.v.p.,
South Omaha Stockyards Natl., and Leon Langeineier, pres.,
First Natl, of Lyons. CENTER— W. W. Wilson, Jr. (seated),
pres., United American L ife, Denver, reviews some policy points

with Ron Pierce, general agent for the company in Columbus,
Nebr.; Jerry Roe, v.p. & cash., Bank of Bennington; Howard
C. Hanson, Jr., v.p., Blair Bank, and Mort Novak, v.p. & cash.,
Union B&T, Lincoln. RIGHT— Russell V. Peterson, dist. mgr.,
St. Paul Terminal Warehouse, Omaha, and Robert P. Kline,
v.p., Northern Trust, Chicago.

LEFT— J. R. Lauritzen, chm. exec, comm., First Natl., Omaha;
Wm. N. Mitten, chm. o f bd., First Natl., Fremont, and Minoi
P. Baird, pres., Farmers State, Superior. CENTER— Don An
derson, v.p., Chiles & Co., Omaha; Jim Foley, Omaha Printing,
N oFRASER
r th w e s t e r n Banker, June, 1965
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Federal Reserve Bank of St. Louis

and Harvey Hayes, v.p., Omaha Printing. RIGHT— Robert C.
Findlay, a.v.p., Central States Health & L ife, Omaha; Joseph
Haller, v.p., Chiles & Co., Omaha; R. H, Tornblom, pres., City
Natl., Lincoln; Conrad E. Aronson, a.v.p., Toy Natl., Sioux City.
X

American National has an excellent banking
connection in Gothenburg.
Gothenburg, Nebraska, that is.
Officers o f the First State Bank of

" C re d it" , "Soya Beans", "Trusts". (Ask

Gothenburg know that they can d e

o n e o f th e m

pend upon A m e rica n

say

s o m e th in g

co rre

in " C a ttle ” .)
N eed a big correspondent bank in

s p o n d e n t banking se rvice s. Lots o f

Chicago whose officers speak in your

service and a minimum of red tape.

n ative tongue? That's us. A m erican

p ro m p t,

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

firs t-c la s s

N a t i o n a l fo r

creative

O ur correspondent banking officers
speak many languages: "Investments",
‘C a ttle ",

"A u to m a tio n ",

"C o rn ",

N ational.

(Incidentally, we have ex

cellent banking connections in G o th
enburg, Sweden, too.)

W e ser ve thousands o f p e o p l e . . . bu t w e ser ve them o n e at a time

American National Bank
and

Trust Company of Chicago/LaSalle at Washington

FRanklin 2-9200

60690

Member Federal Deposit Insurance Corporation
N o r th w e s t e r n Banker, June, ¡9 6 5

100

Nebraska News

LEFT— Seated: Mrs. Theodore King and Wheaton Battey, who
retired last January as chmn., 1st Natl. B&T, Lincoln. Stand
ing: E. J. McBride, v.p., Commercial Bank, Blue H ill; Dale M.
Shoemaker, v.p., 1st Natl. B&T, Lincoln; Theodore King, pres.,
Sioux Natl., Harrison, and Allen Norris, a.v.p. & ag. rep., 1st
Natl. B&T, Lincoln. CENTER— Seated: Mrs. Donald R. Ostrand,
whose husband is v.p., First Natl., Omaha; John F. Davis, pres.,

First Natl., Omaha, and S. N. Wolbach, pres., 1st Natl., Grand
Island. Standing: Pete Isop, repr., and Joe Snyder, a.v.p., both
with Manufacturers Hanover Trust Co., New York. RIGHT—Henry Gramann, Jr. (le ft), v.p., Adams State, who is chmn. of
NBA committee on legislation, and William B. Brandt, attorney
at Unadilla, who is NBA legislative representative.

sor of education, University of Nebras
ka, Lincoln, followed with a talk on
“The University in an Age of An
xiety.” Final speaker was Orrin H.
Swayze, executive vice president, First
National Bank, Jackson, Miss., who
talked on, “What It Takes to Build
Good Public Relations.”
Ladies attending the convention
were invited to a special luncheon and
style show at the Diplomat Motor Inn
in downtown Omaha. They joined
their husbands for the annual banquet
in the Omaha Civic Auditorium, after
which entertainment was provided by
Hans Conried, nationally-known stage,
radio and TV personality.—End.

Edward Kirchhefer, 80, vice presi
dent of the Sutton State Bank, died
recently in a one-car accident in Sut
ton.

New Interest Laws

Code Workshop

The Nebraska Legislature recent
ly approved bills governing inter
est rates. On Monday, April 12, LB 283
was approved. This is the time sales
bill setting rates of $9 per $100 on the
first $1,000, and $6 per $100 on the
balance, with no limit. Repayment
time is a maximum of 85 months.
On Tuesday, April 13, the Legisla
ture approved the following:
LB 52, the Bank Bill, which regu
lates personal loans by banks with a
maximum interest charge of 18 per
cent up to $1,000, 12 per cent on the
balance, and removing the present
$3,000 limit on these loans. Maximum
repayment period is extended from 36
to 85 months.
LB 307, regulating revolving charge
agreements, sets a maximum interest
charge of 18 per cent on the first $500,
and 12 per cent on the balance. It
also removes the current $500 limit.
LB 425, which regulates industrial
loan and investment companies, sets
same interest rates and ceilings as
the Bank Bill.
LB 414 regulates credit unions with
a maximum interest rate of 12 per
cent.

A series of six day-long workshops
was conducted during May by the
Nebraska Bankers Association in an
effort to acquaint bankers with the
complexities and technical aspects of
the uniform commercial code which
becomes law in Nebraska in Septem
ber. Workshops were conducted in
Lincoln, Fremont, Norfolk, Alliance,
Kearney and Holdrege.

N o r th w e s t e r n Banker, June, 1965

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Federal Reserve Bank of St. Louis

Bank W om en, Inc.
The Nebraska Group of the National
Association of Bank Women, Inc., ob
served its 10th anniversary at the an
nual meeting held in McCook recent
ly. Mrs. Amy Reiss, cashier at the
Bruning State Bank, was elected chair
man to succeed Mrs. Frances McCarty,
assistant cashier, First National Bank,
McCook.

Edward Kirchhefer

W. W. Cook, Jr., from assistant vice
president to vice president; J. D.
j
Schiermeyer, from assistant vice pres
ident to vice president; and Walter
W. Braun, from assistant cashier to
assistant vice president and agricul
tural consultant.
>
Lloyd R. Kitrell, the new member of
the bank staff, had worked as a na
tional bank examiner prior to his ap
pointment at Beatrice. He is a 1958 ^
graduate of the University of Nebras
ka.

New Assistant Cashier
The board of directors of the Platte ^
Valley State Bank, Kearney, recently
promoted Mrs. Betty Walline to as
sistant cashier. She has been em
ployed by the bank for approximate- ly four years.

Heads New Bank
Marcus Dittman, former president
of the Cornhusker Bank in Lincoln
and Central Bank in Central City, has
been named president of the new First
National Bank, Richmond, Mo.

Edwin J. Loutzenheiser
New Drive-In
The Overland National Bank, Grand
Island, recently opened its new drivein and walk-up facilities at the corner
of Second and Cleburn Streets. There
was no formal opening ceremony. De
sign of the new facility is such that
it conforms with that of the down
town bank building.

Beatrice Promotions
W. W. Cook, Sr., president of the
Beatrice National Bank and Trust
Company, recently announced the pro
motion of three officers and the ap
pointment of a new staff member to
the commercial loan department of the
bank.
The promotion of officers include:

Edwin J. Loutzenheiser, executive
vice president of the Gothenburg State
Bank, died recently in the Gothenburg
Memorial Hospital following a heart
attack. He had been associated with
the bank for a total of 59 years.

Bellevue Open House
The Bank of Bellevue recently com
pleted its third remodeling program
since opening in March, 1951. The in
terior of the bank was refurbished and *
individual check counter booths, pri
vate loan offices and an enlarged lobby
were included in the project. As part
of the open house promotion, the bank
had a display of $1 million in currency. x
Approximately 3,500 visited the bank
during the celebration.
l

Your Customers’ Livestock Receipts Reach You Faster
When Routed Through South Omaha Stockyards National Bank
Our strategic location, plus over 75 years of financial experience with
the livestock industry, is at your service.

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

May we help you, too?

M em ber Federal D eposit Insurance Corporation
N o r th w e s t e r n Banker, June, T965

102

Nebraska News

Remodeling Planned

P r o m o tio n

A project designed to remodel and
expand the First Security Bank of
Holdrege to more than double its pres
ent size, is underway. A completion
date of August 15 has been set, ac
cording to Ralph Misko, bank presi
dent.

correspondents in a four-state area in
1964. This is the second consecutive
year he has received the award and
the fifth year he has been so honored
during the past 12 years.

80th Anniversary
The Morrill State Bank observed its
80th anniversary last month with a
two-day open house. Norman Saylor,
Jr., is president of the bank.

New Cashier
James B. .Jessup has been named
cashier at the Banner County Bank,
Harrisburg, succeeding Ron Soper,
who resigned. Mr. Jessup had been
Banner county clerk for nearly 11
years and also operated an abstracting
business.

Remodeling Project

The Farmers State Bank of Sargent
is currently being remodeled to make
better use of existing parking space.
u
B A N K B A R B E Q U E — To kick off the first

Former Nebraskan
Marvin L. Dyer, former assistant
cashier at the Lexington State Bank,
has been named manager of the Pinole,
Calif., office of the First Western Bank.

Accepts Position
Elbert Loewenstein, Geneva, former
Fillmore county agent, has accepted a
position with the Bruning State Bank,
according to Frank L. Bruning, vice
president. Mr. Lowenstein will assist
with insurance and loan appraisals.

James M. Easom
James M. Easom, 88, chairman of the
board of the Platte Valley Bank in
North Bend, died recently in Fremont.
He had been in the insurance and real
estate business in North Bend for
many years.

Council Says, “ Okay”

promotion o f the newly-merged South
Omaha Stockyards National Bank, the
employees of the 24th and L Street office
held a bank barbeque outside the drive-in
unit on the busiest corner in South Omaha.
A new redwood picnic table with a large
folding umbrella was used for the promo
tion and was to be given to the employee
introducing the most new customers. The
promotion was based on a new compact
grille, one o f which was to be given to
each person who opened a new account.

New Bank Building
The Blue River Bank, McCool Junc
tion, recently opened the doors of its
new building to the public.

5 7 Years in Banking
W. F. Wenke, president and chair
man of the Pender State Bank at Pen
der, recently observed its 57th anni
versary in banking. Mr. Wenke, 77,
has spent his entire banking career
with the Pender State Bank.

The drive-in office of the First Na
tional Bank of Gordon was damaged
in a freak accident recently. An egg
truck struck the edge of the over
hanging marquee and caused sections
of the ceilings and walls to fall. No
one was injured in the accident.

Exeter Building

Banker Honored

E. L. McCabe, president of the First
National Bank in Exeter, has an
nounced tentative plans to build a
new bank building in Exeter.

W. E. Coblentz, president of the
Farmers State Bank, Aurora, has been
honored by Equitable Assurance Com
pany as one of the top 10 farm loan

N o r th w e s t e rn Banker, June,

1965

Demolition of the old Woolworth
Building, adjacent to the Scottsbluff
National Bank, began last month in
order to make room for the bank’s
new building. H. D. Kosman is presi
dent of the bank.
>

joins Bank
City Council President Russ Thomp
son, Bellevue, resigned the adminis
trative assistant post for which he
had been hired the previous week in
order to join the Bank of Bellevue
effective May 17.
h

After initially refusing to allow the
Farmers State Bank to remove curb
ing for a new drive-in facility, the
Aurora city council reconsidered the
proposal, and finally allowed the ac
tion. The reconsideration came about
through a new application submitted
by the bank giving additional informa
tion concerning p e d e stria n safety
measures.
The information proposed a bell
warning device for cars entering the
crosswalk, plus stop signs and flashing
lights. It also provided for gates
which would prevent unauthorized use
of the drive during non-banking hours.
A delegation of local businessmen had
approached the council requesting
that its initial move be reconsidered.

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Federal Reserve Bank of St. Louis

Begin Demolition

Association Dissolves
At a recent special meeting, the
shareholders of the Hooper Building
and Loan Association voted to dis
solve the association. Under the plan
of dissolution, the First National Bank
of Hooper will acquire the loans of
the association.

Freak Accident

Named Director
Edward J. Svik, vice president of
the Clarkson Bank, has been appointed
to the bank’s board of directors to fill
the vacancy created by the death of
Adolph Bohac.

Appointed President

Clayton Struthers, formerly associ
ated with the First National Bank and
Trust Company, Lincoln, has been
named president of the Grafton State —
Bank.

Made Director
Kenneth Schuette, cashier of the
Bank of Mead, has been made a direc
tor of the institution.

Employee Retires
Miss Bessie Wesely has retired as
an employee of the Schuyler State
Bank. An employee of the bank for
16 years, Miss Wesely was succeeded
by Mrs. James Lambrecht.

Rudolph E. Novak
Rudolph E. Novak, president of the
Oak Creek Valley Bank, died recently
at the age of 83 years.

103

W onderful relief
fo r m any o f our
bank custom ers
financial p r o b le m s ? "
Reports GEORGE W. SHAFER, JR.,
President, First State Bank,
Beaver City, Nebraska

“ My ex perien ce with United American Life’ s new ‘Worth Preserver’ Plan has been w o n d e r f u l . .. g i v i n g so much relief
to many of our depositors who had som e serious financial problems. Excellent training en ables United American s p e
cialists to work hand in hand with us, providing our institution with a really valuable s erv ice.” Practical M idw estern
bankers like G e o r g e Shafer k n o w that a service is only as g o o d as the p e o p le w h o must make it w o rk . A n d M r. Shafer
k n o w s that the United A m e r i c a n AVorth Preserver’ Plan w ork s well f o r his bank! It can fo r yours, t o o . . . offering
an entirely new' and helpful financial tool to depositors, w hile at the same time creating a significant n ew sou rce o f
revenue. O u r p e o p l e handle the w o r k —nothing extra f o r y o u to d o . Y e t y o u pay nothing fo r this service, n or d o y o u r
custom ers. W e pay yo u ! Learn m o r e about this great n ew participating profit opportu n ity f r o m on e o f ou r e x p e
rienced ba n k plan specialists. Write o r wire M r. W . W . W ilson , Jr., or call c ollec t n o w : ( A r e a C o d e 3 0 3 ) 8 2 5 - 1 3 3 1 .

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

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Federal Reserve Bank of St. Louis

Faith In Y our Future

U N IT E D A M E R IC A N
Life Insurance Company
W. W. Wilson, Jr., President
Now ¡n 31 States

1717 California St.

Denver, Colorado
N o r t h w e s t e r n Banker, June, 1965

104

New Bank Officer
John A. Fauber, formerly of Tulsa,
Okla., has been appointed assistant
vice president of the First National
Bank and Trust Company, Beatrice.

New Quarters
The Peoples State Bank in Greeley
recently moved into its new quarters.

Named Officer
Barry Sherman has been elected to
the post of assistant cashier at the
First National Bank in Kearney.

J OSEPH C. MARTIN, 48, vice presi
dent, trust officer and director of
the Union Bank and Trust Company,
Lincoln, died recently.
A lifelong resident of Lincoln, Mr.
Martin had been associated with the
Union Bank and Trust Company for
the past nine years.
*

Robert A.

Wekesser, senior vice

president of the National Bank of
Commerce, has received the first In
vestors Award for
“outstanding in
vestment of time,
thought and ef
fort in human re
sources” from the
Nebraska Human
R e s o u r ces Re
sea rch F o u n d a
tion, Inc. It was
presented to him
at the F ou n d a
R. A. W E K E S S E R
tion’s ninth an
nual meeting at the University of Ne
braska.
Mr. Wekesser has served as presi
dent of the Foundation the past three
years and is also president of the Lin
coln school board. Mr. Wekesser was
cited in the award for his day-to-day
work as a community leader that has
opened so much opportunity to young
er people.
*

>1
= *

Lincoln’s newest bank, Lincoln Bank
South, opened its doors for business
last month at 3737 South 27th Street.
The new bank is Lincoln’s eighth bank
and the city’s fourth state-chartered
bank. Glenn Yaussi is president of
the new bank.
*

Lincoln
group of
scheduled
in Detroit,
dustry for

bankers recently joined a
Nebraska delegates which
a round of business calls
Mich., in search of new in
Lincoln.
John Fraker, manager of the Lin
coln Chamber of Commerce, noted that
the group was primarily interested in
influencing Michigan industries, inter
ested in establishing new plants else
where, to locate in Nebraska.
N o r th w e s t e rn Banker, June, 1965

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Federal Reserve Bank of St. Louis

The following correction should be
made in the 1965 edition of the Nebraska-Iowa Bank Directory:
National Bank of Commerce Trust
& Savings, Lincoln: Change M. H.

Kreycik to assistant cashier; delete
John E. Wilson, and change Roger
Ammon, listed as a director, to Robert
H. Ammon.

President Resigns
H. L. Williams, president of the
Gothenburg State Bank for the past
50 years, resigned his post recently.
The bank’s board of directors immedi
ately elected him to the newly-created
position of chairman of the board.

Approve Affiliate
H. D. Kosman, president of the
Scottsbluff National Bank, has been
advised by the U. S. Comptroller of
the Currency that the bank’s applica
tion to establish an affiliate bank has
been approved. Capitalization was au
thorized at $300,000.

Reuben Knight
Reuben Knight, 80, a banker for a
total of 56 years and president of the
Alliance National Bank from 1940 to
1958, died recently.

OMAHA NEWS . . .
(Continued from page 98)
the new president of the Omaha chapter of the American Institute of Bank
ing.
Elected to assist Mr. Kidder are:
Vice president, Glenn Ried, United
States National Bank; treasurer, Vic
Hoelting, South Omaha Stockyards
National Bank, and secretary, Betty
Feder, Omaha National Bank.
*

John L. Landen has been elected
vice chairman of the board of The
Central National
Insurance Group.
He has been fi
nancial vice pres
ident and treasur
er. He will con- ^
tinue as treasurer
and chairman of
the g r o u p ’ s in
vestment commit- ytee. Mr. Landen
has been a ctiv e
J. L. L A N D E N
in the field of fi
nance for more than 20 years, having
served as vice president of the Securities Acceptance Corporation before
joining Central National.
*

J. Earl Thompson, retired vice chair-

New Addition
Construction is underway on a new
addition to the First National Bank
building in Hooper. The project will
result in additional facilities as well as
a new paved parking lot.

Heads Loan Section
Donald L. Smith has been named to
head the installment loan section at
the Scottsbluff National Bank, suc
ceeding H. W. Pinneker.

Complete Addition
A new large addition to the Citizens
State Bank in Arapahoe has been com
pleted, according to R. F. Emmett,
president of the bank.

man of The Central National Insur
ance Group, died recently at the age
of 67. He had been with the company
since 1947.
*

The Robert E. Schweser Company
has named four new officers. Named
vice presidents are Harold Hultman
and Robert Rob. New assistant vice
presidents are Jack Petersen and Lee

Williams.

The firm specializes in investment
banking and the underwriting of municipal and corporate securities.
Owners are L. L. Lawrence, Frank
E. Williams, Patrick H. Rensch and
William March.

The company also has offices in
Albuquerque, New Mexico and Ven
tura, Calif.

105

fJRST CLASS
jëPECiAX
IfRANSir
SERVICE

M A IR
FIR ST NATIONAL BANK
i TRUST CQMPANV
LINCOLN NfcWUSKA

Bankers with plans use the

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Federal Reserve Bank of St. Louis

TRANSIT SERVICE that is
fast, accurate, and dependable.
F I R S T

N A T I O N A L

B A N K

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L I N C O L N .

N E B R A S K A

w/ÊmÈËÊmmmÊMM

M E M B E R

■m

F .D .I.C .

hm hhi

N o r th w e s t e r n Banker, June, 1965

106

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Federal Reserve Bank of St. Louis

A t fta n k e r s

T ru st

ir e c a r e w h a t h a p p e n s
in

a
r
i.t

Like you, we’re Iowans.

W e’re dedicated to the economic well

being of our state and of its communities.

We care very much

about your success in your trade area, and we welcome the op
portunity to serve your hank.
service —

We offer assistance on:

transit

safe keeping — excess loans — investment counsel —

trusts — and other special services.

107

New Banking Board

Iow a

N EW S
E. L. BALLOU
FRANK WARNER

President
Secretary

Storm Lake
Des Moines

Rock Rapids Bank Sold
A contract has been entered into
with Paul D. Dunlap and his associ
ate, G. E. Anderson, both of Red Oak,
to purchase from Roy Dinsdale of
Palmer, Neb., the controlling interest
of the Lyon County State Bank, Rock
Rapids.
Jerry G. Leahy, president of the
bank, is also in the purchasing group
and will remain as president and man
aging officer. There are no personnel
changes planned.
Mr. Dunlap and his associates now
own the Lyon County State Bank,
Rock Rapids; Houghton State Bank,
Red Oak, and the Onawa State Bank
in Onawa. At year-end, the Rock Rap
ids bank showed capital of $100,000,
surplus of $200,000, and undivided
profits of $140,000. Deposits were $5,155,000, and loans were $3,605,000.

Plan Chariton Opening
Opening at the new building recent
ly completed by the National Bank
and Trust Company, Chariton, is
planned for June 11 and 12. A special
preview for area bankers will be June
10. The Kirk Gross Company in Wa
terloo supervised construction.

Bettendorf to Build
Ground breaking ceremonies were
held last month for the new building
for the newly-chartered Security State
Trust & Savings Bank in Bettendorf.
W. Kenneth Irwin, president of Life
Securities of Iowa, which has had a
leading role in financing the new bank,
said he expected construction to be
completed in about 90 days. Kenneth
E. Swartz, Jr., of Davenport is the
general contractor.
Barton W. Smith, former executive
officer of the Coralville Bank and Trust
Company, will serve as president.
Leonard E. Finck, who resigned as
assistant vice president at the Betten
dorf Bank & Trust Company, will be
cashier. At press time, the new bank
had not received FDIC approval.

Attend Washington
Conference
John Chrystal, state superintendent
of banking in Iowa, and his deputy,

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Holmes Foster, attended a three-day
conference in Washington, D. C., last
month sponsored by the FDIC. It was
the third in a series of conferences on
banking between state banking su
pervisors and the Federal Deposit In
surance Corporation.

joins Sioux City Bank
Charles H. Walcott, well-known
Iowa banker, has joined the First
National Bank in Sioux City as a vice
president.
Mr. W a lc o tt has most recently
served as senior
vice president of
the Pioneer Val
ley Savings Bank,
Sergeant Bluff, a
suburb of Sioux
City. Previously,
he had been vice
president of the
F irst N a tion a l
Bank of Chicago,
where he was in
ch a rg e o f t h e
bank’s agricltural credit division.
Until September, 1963, Mr. Wal
cott was with the Security National
Bank in Sioux City for 28 years. He
served as president of Security from
1959 until he went to Chicago. He is
a past president of the Iowa Bankers
Association.

Resigns at Rock Rapids
Don DeHaan, cashier of the Lyon
County State Bank, Rock Rapids, has
resigned to accept a position with
Brown and Bigelow advertising firm,
working out of Sioux Falls.

Britt Open House
The First State Bank, Britt, held
open house on May 28 in its new
banking quarters.
Supervised by the Kirk Gross Com
pany, Waterloo, the bank put in a new
board room, a new community room,
an employees’ lounge, a private office,
and doubled the bookkeeping area.

Joins Perry Bank
Richard W. Rinderknecht, an ex
aminer for the FDIC, has joined the
staff of the First National Bank,
Perry.

Governor Harold Hughes has ap
pointed a new banking board tcTtake
office July 1. The four new members
will serve with John Chrystal, super
intendent of banking, on the five-man
board. They are:
William P. Ronan, president, De
corah State Bank; Donald J. Bell, pres
ident, New London State Bank; A. E.
Peters, president, Jasper County Sav
ings Bank, Newton, and W. M. Good
year, executive vice president, Lake
City State Bank.

Retires at Sibley
E. C. “Ed” Yappen has retired as a
vice president of the Sibley State
Bank. He had been an officer of the
bank for 21 years. He will continue
to live in Sibley.

Group 11 Golf Tourney
Members of Group 11 are planning
to hold their annual golf and field day
at the Mount Pleasant Country Club
on Tuesday, June 22. Dennis T. Jones,
cashier of the Henry County Savings
Bank, Mount Pleasant, will be in
charge.

Complete Sheldon Merger
Effective last month, the merger of
the State Bank of Archer, Archer, into
the Security State Bank, Sheldon, was
consummated with the Archer bank
continuing as an office.
The resulting bank has assets of
$8,437,730; liabilities of $7,667,124, and
a capital stock account of $770,605.
At the May board meeting, directors
of Security State authorized a 100 per
cent stock dividend, increasing the
capital account from $127,500 to $255,000. Surplus is $250,000. At the same
meeting, Sterling B. Archer was elect
ed as a vice president, and William C.
Haht as assistant cashier. The two
men operate the Archer office.

Refuse Dubuque Application
The Comptroller of the Currency
has disapproved an application for a
new national bank in Dubuque. The
application was made by the Iowa
National Investment Company. Pro
posed directors for the bank were
Laverne J. Schlitz, Robert H. Wahlert, Arthur Roth, Jr., Dr. Donovan F.
Ward, Harold F. Reynolds, John S.
Schlitz and Harold Nachtman.
An application for a state charter
was refused by the Iowa superintend
ent of banking earlier this year. The
application was made by Lynn S.
Fuller and associates. It is under
stood that further interest is being
shown on obtaining a charter in D u
buque by the above mentioned par
ties.
N o r th w e s t e r n Banker, June, 1965

108

Iowa News

W e b s te r C ity
eorge

. Al e x a n d e r

Un
and

G George B. Aden have announced
that they have sold their major inter
est in the Farmers National Bank,
Webster City, to L. S. “Bud” Wood of
Fonda, Rodney B. Amlie of Pocahon
tas, and Mr. and Mrs. B. H. Amlie of
Humboldt. Mr. Wood is now active
in the bank, serving as vice president.
Rodney B. Amlie will remain in his
present capacity as executive vice
president of the Commercial State
Bank, Pocahontas. His father, B. H.
Amlie, is president of the latter bank.
Mr. Wood is a director of the Com
mercial State Bank, and has been en
gaged in the farm management busi
ness in Pocahontas.
Mr. Alexander will remain as presi
dent and Mr. Aden will remain as vice
president in Webster City. Both men
are directors. B. H. Amlie, Mr. Wood
and Rodney Amlie have been added
as directors. Rodney Amlie has also
been named as a vice president.
On April 26, the bank had capital
of $200,000, surplus, $200,000, and un
divided profits of $260,040. Deposits
were $9,578,472, and loans were $5,
294,788.

Resigns at Council Bluffs
Ronald L. Kiger, cashier, Council
Bluffs Savings Bank, Council Bluffs,
has resigned his position to accept an
executive position with the Council
Bluffs Transit Company. Mr. Kiger’s
father headed the transit company un
til his death last month.

Manson Open House
More than 1,300 persons visited the
newly-remodeled banking quarters at
the Manson State Bank during a Sat
urday open house held there last
month.

Atlantic Drive-In
Whitney Loan and Trust Company,
Atlantic, has revealed plans for build
ing a new drive-in facility and adja
cent parking area. Capital was in
creased to $300,000 and surplus to
$400,000 recently.

Spirit Lake Opening
Open house was held last month by
the State Bank in Spirit Lake, accord
ing to Charles Wetzeler, executive vice
president. The main bank was moved
to Spirit Lake from Terril earlier this
year. An office continues to operate
in Terril.
The bank building was designed by
Robert E. Warner, architect from
Spencer. The general contractor for
Northwestern Banker, June,

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Federal Reserve Bank of St. Louis

J965

construction of the building was Build
ing Industries, Inc., of Spirit Lake.
The building is situated on two lots
with a concrete parking area in the
front of the building, plus a drive-in
facility located at the rear of the build
ing. It is constructed of brick and
the over-all size is 40 by 60 feet. The
parking area at the front of the build
ing has an entrance from both Hill
Avenue and 19th Street. The erection
of a large sign with a clock included
gives the correct time to the residents
using the main street which is Hill
Avenue. The bank has modern equip
ment including a drive-in window con
structed by the Mosler Safe Company.
New safe deposit boxes were also in
stalled by Mosler. The bank counters
are constructed of walnut and were
designed and manufactured by Becker
Manufacturing of Alta.

Joins Bettendorf Bank
Robert T. Knapp, president of the
Bettendorf Bank and Trust Company,
has an n ou n ced
that Douglas S.
Grinde has been
elected vice pres
ident of the bank.
Mr. Grinde has
b e e n a ssista n t
vice president of
the Peoples Bank
and Trust Com
p a n y in Cedar
Rapids, where he
h a s b e e n employed for the past 14 years. He has
extensive experience in installment
lending.
Frank Henderson has resigned as
vice president of the bank.

Moves to Council Bluffs
Dale E. Maron has assumed the
position of trust officer of the State
Savings Bank, Council Bluffs. He was
formerly vice president of Iowa Hard
ware Mutual Insurance Company in
Mason City.

Plan Wapello Drive-In
The State Bank of Wapello has pur
chased the former Oakes Service Sta
tion and plans to renovate it for a
drive-in bank.

Sell Sioux City Bank
Neal C. Tennis, director of the Val
ley State Bank, Sioux City, has sold
his interest in the bank to the Perry
Development Company, an Iowa cor
poration, according to J. E. Kelly,
president.
Mr. Tennis, who is president of the

Morningside State Bank, said he dis
posed of his interest in the Valley *
State Bank so as to devote his entire
time to the Morningside Bank.
He will be replaced as director by
Bernard B. Marks.
W

Blairstown Promotions
Earl M. Kimm has been advanced
from cashier to executive vice presi- ^
dent, and Harold J. Martin has been
named cashier from assistant cashier
at the Benton County State Bank,
Blairstown. All other officers and di
rectors are the same.
^

Winterset Open House
Open house in the newly-remodeled
quarters of the Union State Bank was
held last month.

Winning Davenport Team
A basketball team winning 95 per
cent of its games over a four-year pe
riod is unbelievable, but it becomes
even more incredible when the team
has not practiced over five times in
the four-year period.
>
The team in question is the Daven
port Bank, which plays most of its
games in the Davenport Muni League.
During the span, this team, which
is composed mostly of former college
players, has won four Muni League
titles, four Davenport City champion
ships and the Metropolitan League
crown, the only year that league was k
in existence.
The four-year record is 88 victories
and five losses, including a 36-game
winning streak over the last two sea- v
sons.
This year’s team rolled over 20
straight opponents. In 1963-64, the
record was 21-3 and in 1962-63 it was
16-2 after an undefeated 30-game cam- <
paign in 1961-62 which included 10
games in the Metro loop.
Last season the bank retired the
traveling trophy, which goes to theq^,
winner of the city tournament, for
winning the affair the third straight
year.
Four members of this year’s team
were among the top four scorers in *
the league. Ken Moeller, with a 23.2
average, topped the individual scor
ers. Bill Noonan, 19.3; Tom Sunderbruch, 18.6; and Pete Schebler. 17.8, ^
finished third, fourth and fifth, re
spectively.
Others of this year’s roster are Tom
Otting, Bill McAfoos, Del Belvins and
Larry Hatfield.
*

New Waterloo Director
Richard Jenkins, president, Peoples
Mutual Savings and Loan, is new di- |S|
rector of the National Bank of Water
loo.

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Federal Reserve Bank of St. Louis

109

Serving the banks
and public of Iowa
since 1872

« a s s m>

'r r m i y r ® 'u r

W A L N U T AT F O U R T H * M E M B E R FD1C * DES M O IN E S

N o r th w e s t e r n Banker, June, Î 9 6 5

110

D irect V erification
E xp la in ed at
taira G roup
By MALCOLM FREELAND
Publisher
VIPs at 1965 Group Meetings included: Pres. E. L. Ballou
and V.P. Hobt. J. Tank (seated); John Chrystal, supt. of
banking, Paul Franzenburg, state treas., and Speaker J. 1ST.
Christianson.

verification of accounts in
D IRECT
state-chartered banks is scheduled
to start in September.
This is the official word from John
Chrystal, Iowa superintendent of bank
ing, who appeared on the program of
all May group meetings.
Mr. Chrystal explained that direct
verification will prove to be a real
asset to Iowa banks. He stated that
the verification procedure will not
damage the reputation of banks un
der his jurisdiction and any such feel
ings are unjustified in his opinion.
Newspapers and other media offering
mass coverage have been contacted to
“educate” the public in advance of
actual verification. About 10 to 15 per
cent of a bank’s accounts will be veri
fied. It is unknown at present wheth
er or not independent CPA verifica
tions will be recognized in lieu of
verifications from the state banking
department.
Parking Hot Offices

Mr. Chrystal explained the advan
tages of the proposed two parking lot

office bill, mentioning that in his opin
ion it would be a strong deterrent to
branch banking in Iowa. Pointing out
that his bank in Coon Rapids was a
“temporary” member of the Independ
ent Bankers Association, he took a
dim view of that group’s activities in
fighting the parking lot office bill. The
bill had not been acted upon by the
Iowa legislature at the time of the
meetings.
IBA President L. E. Ballou appeared
on the programs of all groups. He men
tioned that the Iowa Bankers Asso
ciation continues to show 100 per cent
membership by the banks in Iowa.
He suggested that Iowa bankers back
Senator A. Willis Robertson’s bill con
cerning bank mergers, which would
give federal bank supervisory agencies
complete jurisdiction over mergers.
He complimented the Iowa College
Foundation and told the bankers that
they should help support this worthy
cause. In conclusion, Mr. Ballou re
minded delegates that they should
analyze their individual banking oper-

CROSS SECTION of delegates at Clear Lake meeting “ drafted” as part of floor show.
Editors believe it best to allow readers to make their own identifications!
N o r th w e s t e r n Banker, June, 1965

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Federal Reserve Bank of St. Louis

ations and not merely set future poli
cies by those established by competi
tors.
>
With the Iowa legislature in session
and voting on such measures as the
payment of 4 per cent interest on state
and local funds, some of the most in- y
teresting discussions took place out
side of the meeting halls. No mention
of this was made during the formal
programs, even though one of Iowa’s
leading daily papers was attempting
to make “an issue” out of the bill dur
ing the time the meetings were being
held.
M. M. McMichael, vice president of v
the Iowa-Des Moines National Bank,
and state chairman for the Founda
tion for Commercial Banks, reported
on the activities of the Foundation.
A detailed report may be found on
pages 34 and 35 of the May issue of
the N o r t h w e s t e r n B a n k e r .
Registration Figures

A total of 2,987 persons registered
for the eight Iowa group meetings
held during the past month.
Group 3, meeting again in Clear
Lake, drew top honors by reporting a
total attendance of 1,012. One of the
smallest registrations was reported by
Group 6 in Perry where only 181 per
sons registered. This group includes
Des Moines and central Iowa where
there is a large concentration of banks.
Other groups reported the following
figures:
x
Group 5—Council Bluffs
Group 2—Spirit Lake
Group 4—Oelwein
Group 8—Maquokta
Group 7—Tama
Group 10—Ottumwa

453
209
367
375
210
180

111

P ic tu r es Taken at ttKia taira tiraiip M ee tin g s

LEFT— Eldon Nielson, a.v.p., State Sav. Bk., Council Bluffs,
retires as Gr. 5 chmii. and congratulates his successor, T. N
Howe, pres., Adair Co. St. Bk., Greenfield. Succeeding Mr. Howe
as secy, is Wm. Ryan, cashier, Home Sav. Bk., Persia. CENTER
— Gr. 6 meeting at Perry was headed bv Jim Haas, a.v.p., Perry
St. Bk.; Secy. Art Lucht, pres.,, Union Story Tr. & Sav. Bk.,

Ames; Ckmn. W. A. Lane, Jr., exec, v.p., Security Sav. Bk.,
Marshalltown, and Tom Smith, pres., First National, Perry.
RIGHT— Homer Jensen, a.v.p., Bankers Tr. Co., Des Moines,
visits with Ray Seney, pres. Amer. State Bank, Mason City, at
Group 3 meeting.

LE FT— Truman Jeffers, asst, secv., Minn. Bankers Assn., con
gratulates Mark Arneson, pres., Clear Lake Bk. & Tr. Co. for
major role he played in staging another successful meeting of
Gr. 3. M. L. Rye, right, pres., State Bk. of Conger, Minn., ac
companied Mr. Jeffers. CENTER— W orking force at Clear Lake

included Jim Gilruth, v.p., Clear Lake Bk. & Tr. and Neva
El ting, a.c., Clear Lake Bk. & Tr. Don Heineking, pres., Sec.
State Bk., Hubbard, is shown with them. EIGHT— Joe Snyder,
a.v.p.. Manufacturers Hanover Tr. Co., New York, registers for
Gr. 3'.

LE FT— Bob Thom, a.c., First Natl. City Bk., New York. CEN
TER— Fred Cummings, v.p,, Drovers Natl. Bk., Chicago, and
Bob Dixon, pres., Eolfe State Bk. EIGHT— M. M. McMichael,

Jr., v.p., Iowa-Des Moines Natl. Bk., demonstrating the adver
tising material offered by the Foundation for Commercial Banks.
He was a speaker at each group meeting.

New officers were elected by the
od d -n u m b e re d groups. Even-num
bered groups hold their officers over
for another year. New officers are:
Group 5 — Chairman, Ted Howe,
president, Adair County State Bank,

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Federal Reserve Bank of St. Louis

Greenfield, and secretary, William L.
Ryan, cashier, Home Savings Bank,
Persia.
Group 3—Chairman, John McWhirter, president, State Bank of Allison,
and secretary, John R. Martin, vice

president, Forest City Bank & Trust
Company.
Group 7—Chairman, Reid C. Giese,
cashier, First National Bank, Sumner,
and secretary, David C. Neuhaus, cash
ier, Fairfax State Savings Bank.—End.
N o r th w e s t e r n Banker, June, 1965

132

I*iri ni *GS Tu I*Vìi a ! I!lfi»i Slava fvsm
onp 31 i»i*fiiti/s

LEFT— Dale C. .Smith, v.p., Central Natl Bk. & Tr. Co., Des
Moines, and Churchill T. Williams, pres., Oelwein St. Bk. CEN
TER— M. M. McMichael, Jr., v.p., Iowa-Des Moines Natl. Bk.,

«
and Bob Kline, v.p., Northern Tr., Chicago. RIGHT— Bob Buenneke, a.v.p., Iowa-Des Moines Natl. Bk. and Larry Guthart,
pres., Arlington St. Bk.

LEFT— E. L. Ballou, IB A pres.; Leo Kane, v.p., Amer. Tr. &
Sav. Bk., Dubuque, and Frank Miller, Decorah attorney. RIGHT
— J. F. Kleeman, cashier, Farley St. Bk.; Churchill T. Williams,

pres., Oelwein St. Bk., and Greg Corken, v.p., Dubuque Bk. &
Tr. Pictures were taken at Gr. 4 in Oelwein.

LEFT— L. D. Murfield, cashier, Citizens Sav. Bk., Anamosa, and
J. M. Hutchinson, exec, v.p., Davenport Bk. & Tr. Co. CENTER
— John H. Lessenhop, pres., Walker St. Bk., and John Chrystal,

supt. o f banking. RIGHT— Reid C. Giese, cashier, First Natl.,
Sumner, and E. H. Spetman, Jr., pres., Council Bluffs Savings
Bank, and candidate for president o f IBA.
*

LEFT— Gr. 10 officers: J, C. Blackford, sr. v.p., Union Bk. &
Tr. Co., Ottumwa (S ecy.), and J. J. Marget, pres,, Keokuk Co.
St. Bk., Sigourney (Chinn.). CENTER— Otto Reel, v.p., Jackson
St. Sav. Bk., Maquoketa, and H. G. Deininger, v.p., Citizens

Sav. Bk., Anamosa. RIGHT— Leo J. Schlueter, a.v.p., Amer. Tr.
& Sav. Bk., Dubuque; Dave Baer, a.c., The Northern Tr. Co.,
Chicago, and Pete Bailey, a.c., Merchants Natl. Bk., Cedar
Rapids.

N o r th w e s t e r n Banker, June, 1965

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Federal Reserve Bank of St. Louis

113

STATEMENT OF CONDITION
April 26, 1965
ASSETS
*

Cash on Hand and on Deposit with Banks----------------------------$ I 2,400,599.99
United States Government Securities ----------- ------------------------------------ I 3,017,407.7 I
Other Bonds and Securities ____________________________________
1,127,086.69
Federal Funds Sold ___________________________________________
1,000,000.00
Loans and Discounts ______________________ __ _________ _______ 30,722,777.16
Security National Bank Building, Vault and Fixtures --------------------------716,953.61
Federal Reserve Bank Stock ___________________________ __ ______
I 20,000.00
Other Assets ---------------------------------------- ----------------------------------------13,605.59
$59,1 18,430.75
LIABILITIES
$1,700,000.00
2,300,000.00
502,363.53

Capital ____________
Surplus ___________
Undivided Profits ____
Total Capital Accounts
Deposits ___ :_______

$ 4,502,363.53
54,616,067.22
$59,1 18,430.75

OFFICERS
Charles R. Gossett, President
Daniel L. M iddleton, Vice President
Paul Snyder, Vice President

E. C. Thompson, Jr., Executive Vice President
Patrick F. Cook, Vice President
V. H. Cassem, Vice President & Cashier

CORRESPONDENT BANK DEPARTMENT
Thomas C. Horn, Senior Vice President
John Diefendorf, Vice President
E. N. "G ene" Hagen, Assistant Cashier

y
TRUST DEPARTMENT
Howard L. Johnson, Vice President

L. C. Jensen, Vice President

SECURITY NATIONAL BANK
6TH AND PIERCE STREETS

•

SIOUX CITY, IO W A

•

MEMBER F.D.I.C.

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

Iowa News

114

P r o m o te T ipton 's #

ANNIVERSARY BELLES— Advance publicity was given to the 125th anniversary of
Tipton when bank ladies registered at Group 8 meeting in Maquoketa. Shown left to
right are: Mrs. R. J. Ferguson, Mrs. L. D. Suchomel, Miss Welcome Reed, Mrs. Max
Werling, Mrs. James Moore, and Mrs. I. L. Kramer. Mrs. W erling’s husband is a di
rector of the First Natl. The other ladies are affiliated with the Tipton State Bank.
Formal celebration in Tipton will be June 27 through July 4.

time-proved
for accurate,
speedy service
on all items
and
collections

New Hills President
Albert F. Droll has been named pres
ident of the Hills Bank & Trust Com
pany, Hills. He succeeds the late Le
roy S. Mercer. Mr. Droll, well-known
in eastern Iowa banking circles, has
been executive vice president for a
number of years, and has served the
bank for 44 years.
Roy Lackender, a senior director,
was named vice president.
The bank recently completed an im
provement project by installing a
flourescent ceiling over the teller area
and a new lobby floor of vinyl Corlan.
Drapes have been added for the front
windows.

___________T ik e.___________

NATIONAL BANK
OF WATERLOO
110

EAST

PARK AVE NUE

WATERLOO,
m

PHONE 235-0331

IOWA

(Area Code 319)

MEMBER
Federal Deposit Insurance Corporation
Federal Reserve System

N o r th w e s t e r n Banker, June, J965

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Federal Reserve Bank of St. Louis

Plan Chariton Drive-In
The First State Bank of Chariton
has announced the purchase of four
business buildings on the downtown
square for location of a new drive-in
facility.
The buildings, heavily damaged by
fire March 31, will be torn down. No
date has been set for developing the
drive-in and parking area although
bank President George Garton said it
will be at least a year before final
plans are made.
New at Fort Dodge
Earl Uecke, 41, vice president of the
First National Bank, Escanaba, Mich.,
has joined the First National Bank in
Fort Dodge as a commercial loan offi
cer.
Mr. Uecke began his banking career
with the First American State Bank,
Wausau, Wis., in 1955. In 1963, he

'Á

joined the bank in Escanaba where his
duties have included supervision of
all loans and public relations.

joins Red Oak Bank
Larry Wenzl, 27, has joined the
Houghton State Bank, Red Oak, and
will work in the bank’s installment
loan department. He was formerly ►
with the National Bank of Commerce
in Lincoln, where he worked as an
installment loan officer for three
years.

Monona Management Change
A change in management in the Un
ion State Bank in Monona was an
nounced after the regular meeting of
the board of directors.
LeRoy C. Darby, formerly a cashier
of the State Bank of Wapello, recently
acquired a majority interest in the
bank from H. T. Orr and has become
executive vice president.
Kenneth W. Rash will remain as
vice president and cashier until Janu
ary 1, 1966. Mr. Orr plans to remain
until January 1, 1967, in an advisory
capacity and for the present will re
tain his titles of president and trust
officer.
Both Mr. Rash and Mr. Orr plan to
retire at the end of their respective
periods of employment after serving
the bank since 1933.

t-q

Name Montezuma Cashier
The new cashier of the Montezuma
State Bank will be Roy Fleming, ac
cording to an announcement made recently by Clyde McFarlin, chairman
of the board, and Kenneth Cox, presi-

Iowa News

115

dent. Advancement of Mr. Fleming
from assistant cashier to his new posi
tion will be effective August 1 upon
the retirement of E. M. “Mike” Ammann.
Mr. Fleming joined the Montezuma
State Bank staff in January of 1957.

Estherville Ag Hep
Frank Lown has joined the staff of
the Emmet County State Bank, Esther
ville, as agricultural representative,
according to C. R. Currell, cashier.
Mr. Lown was county extension direc
tor in Emmet county for 17 years.

New Moville President
At the May annual meeting of the
First Trust & Savings Bank, Moville,
Iowa, Howard M. Logan was elected
president, s u c c e e d in g his fa th er,
Charles W. Logan, who was elected
chairman of the board. George H.
Coker, manager of the Lawton office,
was elected vice president and cash
ier, and Mrs. Darlene Funk and Mrs.
Doris McElrath were re-elected assist
ant cashiers.
Charles W. Logan organized the
First Trust and Savings Bank in 1919
and has served as president since
1928.
An extensive remodeling project for
the Lawton office has recently been
completed as well as new hospitality
rooms for the Moville location. The
board of directors consists of Charles
W. Logan, chairman; Howard M. Lo
gan, Frank Zellmer, Raymond A. Hess
and Glenn C. Metcalf, Jr.

Honor Kalona Couple
Mr. and Mrs. Ferd Skola were hon
ored on June 1 by their children and
employees of the Farmers Savings
Bank on the occasion of the Skola’s
25th wedding anniversary. Open house
was held in the bank’s community
room.

BUYING
OR SELLING
A BANK?
Write or call collect
365-9117 Area Code 319

REGINALDFIGGEASSOCIATES
Confidential Consulting Service
Merchants National Bank Building
Cedar Rapids, Iowa

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Federal Reserve Bank of St. Louis

Did you get the bonds for the best price? Do they really fill
your portfolio needs? If you got them from a National Bou
levard representative, you’re sure on both counts, because
along with knowing his bonds he’s a trained portfolio analyst,
too. He’ll make an in-depth study of your investment port
folio before suggesting specific bonds. That way he can tailor
bond recommendations to your needs and make other sug
gestions to strengthen your entire investment program.
Are National Boulevard representatives good portfolio ana
lysts? Well, one correspondent bank increased net operating
earnings by 46.3% the initial year after our in-depth study.
And where our skill in the bond market is concerned, take
a look at National Boulevard’s own performance. We have
an impressive average of 4.9% pre-tax investment return
over the past five years.
Are you interested in this kind of individualized attention?
Abu can get the full story of our investment portfolio analysis
services by calling Charlie Schoeneberger at . . .

IN B
I

NATIONAL BOULEVARD BANK
i

OF C H IC A G O

WRIGLEY B U ILD IN G -400-410 N .M ichiganAve.* Phone467-4100
MEMBER FDIC

N o r th w e s t e r n Banker, June, 1965

116

Iowa News

A e /r H ouiflilon S ia le H ank O pens

Cost of the course, which will be
repeated next fall, is $25 per person.
Further information may be obtained
by writing either Luther College or
Mr. Miller.

Downtown Parking Facility

APPROXIMATELY 5,300 persons attended open house last month at the recentlycompleted Houghton State Bank at Red Oak.

5,000 persons toured the new
O VER
Houghton State Bank building in
Red Oak last month, according to Paul
D. Dunlap, president.
The new bank facility is located
across Coolbaugh Street from the
Montgomery County court house and
replaces the bank’s former building on
the southwest corner of the square.
A one-story, stone and red brick build
ing, it was built according to the clas
sical Tuscan design, with large stone
columns on the north side where the
main entrance is located. According
to Architect Howard Nickerson, Jr.,
the Tuscan order is “distinguished by
its simplicity of line and shape.” The
height of the columns decided the di
ameter at the bottom, with the top
diameter 19/24ths that of the bottom.
This created a pleasing proportion,
which was then carried out in the
beautiful styling of the entire struc
ture.
The new Houghton State Bank
building features a drive-up window,
after-hours depository and envelope
drop on the south side. The bank’s
interior is decorated in soft shades of
gold and brown interspersed with rest
ful wood paneling. Inside, to the left
of the main or north entrance, is a
spacious customer lounge with easy
chairs; teller windows are on the
south side, opposite the customer
lounge. To the west of the teller win
dows are the bookkeeping department,
vault and safe deposit boxes with ad
jacent private rooms.
One of the highlights of open house
was the special commemorative book
let presented visitors, telling the early
history cf Red Oak and Montgomery
County and the Houghton State Bank,
in word and picture.

Victor Bank Sold
Robert V. Dentel of Elroy, Wis., has
purchased controlling stock in the Vic
tor State Bank, Victor, from Wesley
J. Simpson and has succeeded Mr.
Simpson as cashier and managing of
ficer. Bankers Service of Des Moines,
Iowa, made the sale.
N o r t h w e s t e r n Banker, June, 1965

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Federal Reserve Bank of St. Louis

Mr. Dentel is a native of Ackley,
Iowa, and a 1951 graduate of the State
University of Iowa. He was employed
as an insurance underwriter in Des
Moines four years and as an invest
ment counselor for one year, before
entering the employ of the First Bank
of Grantsburg, Wis. He has been cash
ier of the Bank of Elroy, Elroy, Wis.,
for the past two years.
Mr. Dentel has also purchased the
Simpson family residence property
and will move his family to Victor in
June. Mr. Simpson’s future plans are
indefinite.

T. F. Jacobson
Funeral services were held last
month for T. F. Jacobson, president,
Roland State Bank. He died of a heart
attack at the age of 51. Mr. Jacobson
was also vice president of the Story
County State Bank, Story City.

Offer Banking Course
A special course, outlining the pro
visions of the Uniform Commercial
Code, which will become law in Iowa
in July, 1966, has been initiated at
Luther College in Decorah, Iowa.
The course, consisting of several
Thursday evening sessions, is being
taught by Frank Miller, prominent De
corah attorney and an instructor at
the college.

Officials of Spencer National Bank
announced plans for the construction
of a downtown drive-up and walk-in
office facility, which will be a subsid
iary of its main bank at the Shopping
Center.
Robert Krzmarzick, bank president,
said the new bank facility will be
where Earl’s Shoe Repair is now lo
cated on E. 4th Street just east of the
Rexall Drug.

Heads Fiduciary Group
L.
C. Jensen, assistant vice president
and trust officer of the Security Na
tional Bank, Sioux City, has been
elected president of the Iowa Corpo
rate Fiduciaries Association. He suc
ceeds Fred Koch, vice president and
trust officer of the Waterloo Savings
Bank. Other officers are J. Locke
Macomber, vice president and trust
officer, Valley Bank and Trust Com
pany, Des Moines, vice president, and
Ulrich H. Bunkers, vice president, Toy
National Bank, Sioux City, secretarytreasurer.

Approve Ottumwa Facility
First National Bank of Ottumwa
has received approval for a parking lot
office (or branch) from the Comptrol
ler of the Currency. Location will be
in the bank’s present location at 131
East Main, to be operated after the
bank has moved to its new location at
Second, Marion and Third Streets.
It is understood that the facility is
being questioned through the office of
the state superintendent of banking,
and also, there is a problem as to
whether or not the city of Ottumwa
will continue to approve the use of
municipal parking meters for drive-up
purposes by the bank’s customers.

A p p r o v e E ld ora A p p liea tion
RUPPELT, cashier of the
D ORIS
Farmers Savings Bank of Steam
boat Rock, has announced that a spe
cial stockholders’ meeting was held
last month to implement the author
ity from the Comptroller of the Cur
rency to convert the bank into a na
tional bank. Headquarters of the bank,
to be called the First National Bank
of Eldora, will be temporarily located
in two store fronts on the court house
square. The present Baptist Church,
also on the square, has been purchased
and this ground will become the site

of the permanent bank building at a
later date.
Three new directors will be added
to the present board. They are Chris
Riggert, retailer, and William Tietz,
veterinarian, both of Eldora, and Sam
McHose of Nevada, president of the
Nevada National Bank.
It is anticipated that some additional
stock will be sold to people in the
area. Capital of the new bank is to
be $100,000, with surplus $100,000, and
approximately $70,000 of undivided
profits.

Iowa News

117

N a tion a l C h a rter fo r A n tes /la a h
name change for the Ames
T HE
Trust & Savings Bank became ef
fective last month when the bank offi
cially became First National Bank,
Ames, Iowa.
Initial action for the change of
name began several months ago when
the bank’s board of directors and
stockholders unanimously approved
the application for conversion to a
national charter under the First Na
tional Bank name.
Clay W. Stafford, chairman of the
bank, was formerly state superintend
ent of banking in Iowa.

Name Merchants Director
At the annual meeting of the share
holders at the Merchants National
Bank, Cedar Rap
ids, F. Forbes Olberg was elected
a director, in an
announcement by
John Hamilton II,
president. Mr. Olberg is a senior
vice president of
the bank.
Mr. Olberg re
places James S.
F. F. O L B E R G
Vaughan who re
cently moved to London to head the
European operations of the Square D
Company.

New Maquoketa Directors
Otto W. Reel, vice president of the
Jackson State Savings Bank, Maquo
keta, reports the election of three new
directors. They are: Edward L. Tubbs,
vice president and farm service direc
tor of the bank; Robert E. Johnson,
executive vice president of the Morris
Plan, Cedar Rapids, and Mr. Reel.

Joins Burlington Bank
John F. O’Neill, 35, has been named
trust officer of the National Bank of
B u rlin g to n , ac
cording to V. P.
Cullen, president.
Mr. O’Neill suc
ceeds William R.
R u th er, who re
cently moved to
A p p le to n , Wis.,
to head the trust
department of the
F ir s t N a tion a l
Bank of Appleton.
Mr. O’Neill has
been with the First National Bank,
Mason City, since 1958, where he was
assistant vice president and trust of
ficer.

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Federal Reserve Bank of St. Louis

Bank officials have been busy in re
cent weeks handling the numerous
details in connection with the change.
The bank name appears seven times
on parking lot signs, at the motor
bank, on the time and temperature
sign, and above the main entrance.
These signs are in various states of
modification. Approximately 150 forms
and rubber stamps have been revised
in connection with the name change.

our
smiling
auditor...

C O N V E N T IO N S
June 7-18— Agricultural Credit School,
Memorial Union, Iowa State Uni
versity, Ames.
June 8-11—Nebraska Bankers Assocition Bank Management Confer
ence, Doane College, Crete.
June 10-12—Wyoming Bankers Asso
ciation 57th Annual Convention,
Jackson Lake Lodge, Moran.
June 14-16—Minnesota Bankers Asso
ciation 75th Annual Convention,
Hotel St. Paul, St. Paul.
June 14-25— Stonier Graduate School
of Banking, 31st Annual Session,
Rutgers University, New Bruns
wick, N. J.
June 24-26—Montana Bankers Associ
ation 62nd Annual Convention,
Jackson Lake Lodge, Moran,
Wyoming.
July 4-17—Financial Public Relations
Association School of Financial
Public Relations, Northwestern
University, Chicago Campus.
July 7-9—Upper Midwest Agricultural
Credit Council 11th Annual Canvention, Dell View Hotel, Lake
Delton, Wicsonsin.
July 18-30—National I n s t a llm e n t
Banking School, University of
Colorado, Boulder.
August 1-14— NABAC School for
Bank Audit and Control, 13th
Annual Session, University of
Wisconsin, Madison.
August 9-27— ABA National Trust
School 5th Annual Session, North
western
University,
Evanston,
Illinois.
September 28-October 1—National As
sociation of State Banks, 64th An
nual Meeting, Pick-Fort Shelby
Hotel, Detroit.
October 3-6—American Bankers As
sociation 91st Annual Conven
tion, Chicago.
October 17-20— Iowa Bankers Associ
ation 79th Annual Convention,
Fort Des Moines, Des Moines.
October 17-21—National Association
of Bank Women 43rd Annual
Convention, Hotel Mayo, Tulsa,
Oklahoma.
October 24-28—Financial Public Re
lations Association 50th Annual
Convention, New York Hilton,
New York.
October 25-28—NABAC 41st Annual
Convention, Chase Park-Plaza, St.
Louis.
November 14-16—ABA 14th National
Agricultural Credit Conference,
Hilton Hotel, Denver.
November 14-17—Robert Morris As
sociates 52nd Annual Convention,
G r e e n b r ie r , W h ite
Sulphur
Springs, West Virginia.

Art Rayunec, La Salle auditor,
knows how to spot trouble be
fore it happens. He can recom
mend procedures that mean
greater security and peace of
mind for bankers. La Salle corre
spondents often call on him for
auditing help. You can reach Art
at La Salle National Bank, 135
South La Salle Street, Chicago,
Illinois 60690. His phone number
is STate 2-5200, area code 312.
Member FDIC. Complete Trust
Services.
N o r th w e s t e r n Banker, June, 1965

118

drive-in banking facility, on Fleur
Drive, for the South Des Moines Na
tional Bank. Donald J. Tew, vice
president and cashier, reports that the
new facility should be ready for occupancy approximately September 1.

D e s M o in e s N e w s

>i= *

South Des Moines
National Bank, and Edwin Knouse,
Capital City State Bank, tied for top >
honors in the second-semester “Princi
ples of Banking” course offered by the
AIB.
Top scholars in other classes offered
by the AIB were the following:
*
“Money and Banking”—Miss Joyce
Boone, Plaza State Bank.
“Accounting II”— Miss Phyllis Mor
rison, Northwest National Bank.
^
“Effective English”— Miss Jane Pe
tri, Bankers Trust Company.
James Friesz,

Iowa-Des Moines N a tion a l
T HE
Bank has been given approval by
the office of the Comptroller of the
Currency to construct a parking lot
office in northwest Des Moines, accord
ing to C. W. Aurand, president.
The office will be located west of the
Hinky Dinky su p e rm a rk e t on the
northwest corner of Beaver and Doug
las Avenues, he reported.
Construction is scheduled to begin
as soon as final drawings have been
completed and approved.
*

C. O. Petersen, Valley Bank and
Trust Company, was recently elected
president of the Des Moines Chapter
of the American Institute of Banking
at the annual meeting at Wakonda
Club. Other officers elected were as
follows:
Lloyd Querrey, assistant cashier,
Central National Bank and Trust, was
named first vice president and educa
tional chairman; Charles Cox, Iowa-

Des Moines National Bank, second vice
president and membership chairman;
Miss Deloris Brown, Bankers Trust
Company, treasurer; Mrs. Judy Court
ney, Valley Bank and Trust, secretary;
and Mrs. Doris Capp, National Bank
of Des Moines, women’s chairman.
*

The Iowa Banking Board, although
it did not meet during the month of
May, will hold two meetings during
the month of June.
>1
= *

Bankers Trust Company has in
stalled an electronic data processing
center in one area of its building and
has also remodeled and refurnished
the bank’s employees’ lounge.
*

Allon M cG lothlen, assistant vice

president, Valley Bank and Trust
Company, recently became the father
of twins—a boy and a girl.
*

I f off o r Vaiteli Ila nit Ilei ir ee

the East Des Moines National Bank
since February 1,
1965, h a s b e e n
elected an assist
ant cashier by the 'A
bank’s b o a r d of
d ir e c to r s . M iss
Akes was former
ly vice president
of the D ecatu r
C o u n t y State
B a n k in L e o n .
She has been in
MISS AKES
the banking pro *
fession for approximately 15 years.
Announcement of her promotion was
made late last month by Doyle A.
Butts, executive vice president.
=t= H
5 *

Construction has begun on a new

Miss Alice M. Akes, associated with

auditor,
Bankers Trust Company, presided at
one of the sessions at the Northern Regional Conference of NABAC held May
10-12 at Indianapolis, Ind.
Walter K.

Stephenson,

Rhinehart W. Ruff, assistant v ic e ,

MRS. MIRIAM TRACY, long-time telephone operator at the Valley Bank and Trust
Company, Des Moines, is congratulated by Edward Burchette, chairman o f the board,
at a coffee held in the bank lobby last month. Mrs. Tracy, who began working as a
telephone operator at the bank in 1930, was honored in view of her retirement which
became effective at the end of May. Also pictured are Mrs. Tracy’ s husband, H. G.
(Dick) Tracy, president o f Tracy Ceramic Tile Company, Inc., and Mrs. Burchette.
N o r th w e s f e r n Banker, June,

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

1965

president at the Iowa-Des Moines Na- 1
tional Bank, has been named to re
place Donald C. Fiske as manager of
the bank’s systems and procedures
department, according to an announce- v
ment made by C. W. Aurand, bank
president.
Mr. Fiske has accepted a new posi
tion as assistant vice president of com- —
puter research and development for
the Northwest Bancorporation, Minne
apolis, Minn.
Mr. Ruff came to the bank from the
Mi nne s o t a Blue Cross C om pany, x
where he was manager of hospital
services systems. Prior to joining
Blue Cross, he was, for seven years,
an assistant cashier at the First Na- ^
tional Bank of Minneapolis.
Mrs. Esther Mazza, a long-time em
ployee of the bank’s bookkeeping de-

Iowa News

N ew

J ia son

119

HAWKEYED!

NEW INTERIOR of the parking lot office opened last month by American State Bank,
Mason City. The facility is located at 1631 4tli Street S.W. in W illowbrook Plaza Shop
ping Area. L obby is 20 feet by 50 feet.

partaient, died recently. Mrs. Mazza
first joined the bank in 1920 and
J worked there until 1936. She rejoined
the institution in the late 1940’s and
worked there continually from that
time until her death.

National Association of Bank Women
last month in Indianapolis, Ind. Ap
proximately 160 women officers of
banks throughout a 12-state area at
tended the conference.

have been promoted to assistant cash
iers of the Highland Park State Bank.
Both are in the bank’s note depart
ment.
Mr. Chatham joined the bank in
1956 and has been in the note depart
ment for the past eight years. Mr.
Gould joined the bank this year after
having been associated for nine years
with the Clarke County State Bank,
Osceola, where he was cashier.

Lloyd Querrey, assistant cashier, and
Mrs. Querrey; William B. Greaves, as
sistant cashier, and Jane Byers, all of

y -<Central National Bank, attended the
national American Institute of Bank
ing Convention in New Orleans, La.,
May 30 to June 4.
Mrs. Mary F. Holstad and Mrs. Marie
Peebles, assistant cashiers, attended
the Tri-Regional Conference of the

John Chatham and Ross E. Gould

M AX

R O Y, L a S a lle V i c e

P r e s id e n t,

h a s a h a w k ’s e y e w h e n it c o m e s to
I o w a a n d I o w a fa r m in g . H e

a ls o is

h a w k e y e d a b o u t fin d in g w ays an d
m e a n s to h e lp L a S a l l e ’s I o w a c o r r e s
p o n d e n ts . H e ’ll a c t f a s t a n d r ig h t on

Hank D ir e c to r y C orrection s
HE following corrections should
be made in the 1965 edition of the
Iowa-Nebraska Bank Directory:
Farmers State Bank, Yale: Delete
Francis E. Culver. Jay W. Hemphill
is president, Jay C. Hemphill is cash
ier, and Frances C. Chaloupka is asr r sistant cashier.
Holstein State Bank, Holstein: List
a Cushing office on page 67.
Farmers Savings Bank, Victor: De
lete Roy Park and H. Art Schweibert
from directors. Add E. J. Buresh and
Pauline DeSmet.

National Bank of Rockwell City:

Change listing under “ Deposits” from
-v “P & R” to “L & D” ($1,696,050).
Community State Bank, Whiting:

Delete J. L. Garred and W. C. Kratz
from directors’ list.
,

Home Trust & Savings Bank, Os
age: The chairman, president and vice

president are inactive.
Nold as cashier.

Add Royal A.

State Bank of Spirit Lake: Listing
should appear on page 219, instead of
page 218. Add C. W. Wetzeler, execu
tive vice president.

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Federal Reserve Bank of St. Louis

th e s p o t to se rv e y o u . W h y n o t g e t th e
fa c t s f r o m M a x . H e liv e s r ig h t n e a r b y

First Trust & Savings Bank: Arm

in I o w a C i t y , b u t h e m a k e s h is h e a d

strong: Deposits, $4,244,811; Loans, $2,243,469; Undivided profits, $263,166;
Cash, $819,792; Governments, $157,762.

q u a r t e r s a t La S a lle N a t io n a l B a n k ,

First National Bank, Fort Dodge:

1 3 5 S o . L a S a lle S t ., C h ic a g o , 111. 6 0 6 9 0 .
S T a t e 2 -5 2 0 0

(a r e a c o d e 3 1 2 ) . M e m

b e r F D I C . C o m p le te T r u s t S e r v ic e s .

Bank is shown by former name of
Fort Dodge National. Name should
be changed to First National Bank.
Lake City State Bank: Loans should
be $1,899,110, and other securities
should be $88,765.
Iowa State Savings Bank, Creston:

Add Arthur J. Duben as vice president.
Central National Bank and Trust
Company, Des Moines: Add William B.

Greaves, assistant cashier and man
ager, credit department.
Seymour

State Bank,

Seymour:

Change government bonds to $1,032,000. Show cash as $96,000. Correct
name to R. F. Malmberg.
T op Scholar
James H. Young, assistant cashier,
Poweshiek Co unt y National Bank,
Grinnell, earned top honors in the
second semester “ Investments” course
offered by the AIB.
N o r th w e s t e r n Banker, June, 1965

120

Gross, Kirk, Company ..............................120
Guardsman Life Insurance Company.. 10
II

Harris Trust and Savings Bank ........... 15
Hawkeye-Security Insurance Co........... 36-W
I

Position Available
Trust Officer W anted by M idw est
ern Bank. Full responsibilities fo r
adm inistration, operations and new
business developm ent in sm all but
rapidly g row in g trust department.
P refer experienced person with
legal background but w ill consider
all applicants. W rite B ox D LS, c /o
N O R T H W E S T E R N B A N K E R , 306
15th Street, Des M oines, Iow a
50309.

Executive Vice President’s Position
Available
W anted— Experienced banker fo r
position as E xecutive V ice P resi
dent o f $15 m illion bank. H eavy
lending background. Proven ad
m inistrative ability a necessity.
A g e to 45. Salary open, and ad
justable to m eet demands o f those
w ith highest qualifications. P osi
tion available im m ediately. Our
em ployees know o f this advertise
ment. R eply B ox LW C c /o N O R T H
W E S T E R N B A N K E R , 306 15th
Street, Des M oines, Iow a 50309.

WANT TO BUY
Banker will buy controlling in
terest of bank up to $10 million
in deposits. Will consider buying
up to 100% of stock if necessary.
All replies confidential. Write
Box NBC, c/o NORTHWEST
ERN BANKER, 306 15th Street,
Des Moines, Iowa 50309.
BANKERS — We are confidential
recruiters exclusively for bank
clients. Our coverage is nation
wide. Send resume including your
present salary and requirement,
and geographical preference to
DON H O W A R D PE R SO N N E L,
179 Broadway, N. Y., N. Y. 10007,
or phone 201— B A 7-9000 for info.
L E G A L FORM S
A n y fo rm you need we stock, or
w ill print. S p e c i a l form s then
stocked fo r prom pt shipm ent on
reorders.
IO W A L E G A L B L A N K
& P R IN T IN G CO.
B ox 238, W ebster City, Iow a

o r th w e s t e r n Banker, June, 1965
Digitized forNFRASER
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Federal Reserve Bank of St. Louis

Acorn Printing Company ........................ 120
Allison-W illiam s Company ....................... 60
American National Bank and
Trust Company of Chicago ................... 99
American National Bank of Saint Paul 55

B
Bank Building and Equipment Corp.. 9
Bankers Service Corporation ................120
Bankers Trust Company— Des Moines. 106
Bank of America ........................................ 26
Bank of Montreal ........................................ 64
Billings State Bank— Billings, M ont... 79
Burroughs Corporation ............................ 17

Iowa-Des Moines National Bank .........124
Iowa Legal Blank and Printing Co. ...1 2 0
Iowa Power and Light Company......... 40
Irving Trust Company .............................. 21
J

Jackson State Bank, The—
Jackson, Wyoming ................................ 80

Iv
Kidder, Peabody & Co., Incorporated. 45

L
LaMonte, George, & Son ......................... 61
LaSalle National Bank ...........46, 117, 119
Live Stock National Bank— Sioux City 66

M
C

Capp Towers Motor Hotel ..................... 64
Central National Bank and Trust
Company— Des Moines ......................... 18
Central States Health & Life Co.......... 123
Chase Manhattan Bank, The .................
4
Chemical Bank New York Trust C o... 39
96
Chiles & Company .....................
Christmas Club A Corporation ............. 37
City National Bank and Trust
Company— Kansas City ........................ 89
Commerce Trust Co.— Kansas City. . . 47
Continental Illinois National Bank
and Trust Company ................................6-7

Davenport, P. E., and Company ..96, 121
D elu xe Check Printers, Incorporated. 38
Denver U. S. National Bank ................. 84
Diebold, Incorporated ................................ 13
Digit Display Corporation ..................... 23
Downey, The C. L., Company ................. 16
Drovers National Bank .............................121

Marquette National
Bank ..........
Merchants National
Bank ..........
Midland National Bank of Minneapolis
Minnesota Commercial Men’s Assn. . .
Miramar Hotel .............................................

57
2
59
88, s .
44

National Bank of Commerce
Trust and Savings .................................. 95
National Bank of South Dakota, The. 67
National Bank of Waterloo, The .........114
National Boulevard Bank of Chicago. 115
National Fidelity Life Insurance C o... 65
National Reserve Life Insurance C o... 14
Northern Trust Company ........................ 3
Northwestern National Bank
of Minneapolis ........................................ 50

o
Omaha National Bank, The
............. 97
Ozark Air Lines .......................................... 49
P

Puget Sound National Bank ...................
Employers Mutual Casualty Company. 48

12 *

Recordak

Corporation

......................... 62-63

P
Farm Business Council, Incorporated. 20
Figge, Reginald, Associates ................... 115
First National Bank and Trust
Company— Cheyenne, Wyom ing . . . . 80
First National Bank and Trust
Company of Lincoln ...............................105
First National Bank— Browning, Mont. 78
First National Bank— Casper, W y o ... 82
First National Bank— Glendive, Mont. 79
First National Bank in St. Louis . . . . 43
First National Bank of Chicago ........... 41
First National Bank of Omaha ............... 93
First National Bank of Saint Paul . . 53
First National Bank— Rawlins, W yo.. 82
First National Bank— Thermopolis,
Wyoming ....................................................... 83
First National City Bank— New York. 11

WE DO TWO THINGS
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CONFIDENTIALLY

St. Paul Terminal Warehouse Co........ 25
Security National Bank— Sioux C ity .. 113
Security Trust & Savings Bank—
Billings, Montana .................................... 79
South Omaha Stockyards
National Bank ............................................101
Stock Yards National Bank—
South Saint Paul .................................... 54
Studley, Shupert Trust Investment
Council ......................................................... 20

Talcott, James, Inc.

—*
U

Union Bank and Trust Company—
Helena, Montana .................................... 78
United American Life Insurance C o ... 103
United California Bank ............................ 87
United States Check Book Company. . 42 V'
United States National Bank— Omaha. 90
V

Valley Bank and Trust Company—•
Des Moines .................................................109
Valley National Bank of Arizona . . . .
8/

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BANKERS SERVICE CORP.
Henry H. Byers, President
Myron E. Karsten, Exec. Vice Pres.
1301 Register and Tribune Bldg.,
DES M OINES, IO W A 50309
Telephone 515— 244-3113

ACORN

Sale 1 / f
Registers

"Accepted Sale Registers by Bank
Clerks Everywhere"
For information write

THE A C O R N PRINTING CO.
Oakland, Iowa

Iowa News

A u t o A t tr a c t io n

SECURITY STATE BANK, Sheldon, Iowa,
recently promoted the bank’s auto install
ment loan services by having a local deal
er place a 1965 automobile in the bank’ s
lobby. “ We had the car in the lobby for
one week and noticed a very evident in
crease in lobby traffic and heard many
comments around town and from many
salesmen throughout the northwest Iowa
sales territory,” according to Richard A.
Schneider, vice president.

Aurelia to Build
The First Trust and Savings Bank,
Aurelia, plans to build a new building
with completion set for this fall. Paul
Park Construction Company of Storm
Lake has been awarded the contract.

121

Elected President

Sergeant Bluff Bank Sold

Richard L. Schneider, 55, was elect
ed president of the Lee County Sav
ings Bank in Fort Madison last month
by the board of directors. He suc
ceeds the late Ellsworth O. Thomas.
Mr. Schneider has been with the
bank since 1929, serving most recently
as executive vice president.
Roy G. Weddington, cashier and
trust officer, was advanced to execu
tive vice president. He will continue
as trust officer. He has been associ
ated with the bank since 1933. Suc
ceeding him as cashier is Joseph F.
Simmens, assistant cashier, who has
been with the bank since 1954.

O. A. Swartz, president of the Pio
neer Valley Savings Bank in Sergeant
Bluff, announced last month the sale
of controlling interest of the bank to
Neal C. Tennis, president of the Morningside State Bank. The Pioneer Val
ley Insurance Agency also was sold to
Mr. Tennis.
Mr. Tennis has been elected presi
dent and director. Mr. Schwartz con
tinues on the board. Other directors
include Ward Baker, A. H. Gray, John
Hollenbeck and C. H. Walcott.
Mr. Tennis said no operational
changes are contemplated at the bank.

NOW! CHICAGO’S ONLY
STOCK YARDS BANK!
THE

DROVERS NATIONAL BANK
OF CHICAGO

Investment Class

WE IN V IT E

The Crawford County Trust and
Savings Bank, Denison, is co-sponsor
ing a series of weekly investment
seminars with the Sioux Falls office of
J. M. Dain and Company investment
firm.

YOUR
BUSINESS

State Center Opening;
The Central State Bank,
ter, held its grand opening
bank building last month.
60 area bankers attended
preview of the new bank.

State Cen
in its new
More than
a special

Riverside to Build
The Peoples Trust and Savings
Bank, Riverside, has awarded con
tracts for construction of a new bank
building to Earl Wood and Sons of
Washington, Iowa. Work has been
started and completion is expected
this fall.
YOUR STATE BANKERS ASSOCIATION
O FFICIAL SAFE, VAULT AND
TIMELOCK EXPERTS

F. E. DAVENPORT & CO.

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

OMAHA

FRED D. C U M M IN G S
Vice President

C orrespondent Banks

DroversNational Bank
47th Street and Ashland Ave. • YArds 7-7000
M e m b e r, F ederal D eposit Insurance C o rp o ra tio n

THE DROVERS NATIONAL BANK SALUTES THE CHICAGO UNION STOCK YARDS ON
THIS, THE YARDS’ 100TH ANNIVERSARY OF SERVICE TO LIVESTOCK FARMERS
N o r th w e s t e r n Banker, June, 1965

122

H o w M a n y C a ttl e ?

T r a n so m T ra n sa c tio n

Approximately 50 years ago, a shab
bily-dressed old man appeared in the
office of Fred Handley, president of a
bank in a small Oklahoma town, and
asked for a loan of $1,000 for 90 days.
The banker smiled grimly as he looked
at the nondescript character who had
the temerity to ask for a loan of this
size, and handed the would-be bor
rower a sheaf of papers. “You’ll have
to fill these out to our satisfaction,”
he explained, “and then we’ll decide
whether to lend you money or not.”
The ill-clad man took the papers to
the rear of the bank and laboriously
made the required entries. Then he
returned them to Mr. Handley, who
looked over the forms carefully. “ So
you have some steers,” he said. “How
many head of cattle do you actually
have?”
“ I don’t know exactly,” replied the
borrower, “but 1 imagine I’ve got at
least 4,000.”
The banker blinked his eyes. He
pulled out a pad, jotted down a few
memoes and then said, “Well, I guess
under those circumstances we can
lend you $1,000.”
Ninety days later the borrower re
turned with the principal and the in
terest. He handed the money to the
banker and explained that he had
made a bigger profit on the sale of his
cattle than he had anticipated and
that he had also sold the mineral
rights to a portion of his land for some
$50,000.
The banker gasped. “ That’s won
derful!” he exclaimed. “And now that
you have all that extra money, why
don’t you deposit it here?”
“ I’d like to,” replied the man, “but
first I have to ask you a question.”
“ Sure, go ahead.”
“How many head of cattle do you
have?”

A man once entered a bank and
asked for a loan. For collateral, he
handed over a briefcase full of se
curities worth $52,000.
“How big a loan are you seeking?”
the banker asked.
“One dollar.”
The banker figured here was an
other well-to-do eccentric and, to hu
mor him, he made the loan. A year
later, when it fell due, the man re
turned, paid the 6-cent interest and
renewed the paltry loan.
As the man was leaving, the bank
er’s curiosity got the best of him.
“Would you mind telling me what
this is all about?” he asked.
“Not at all,” said the man. “Where
else can I get a safe deposit box for
six cents a year?”
H o n e s t M is ta k e

man telephoned the police to re
port that thieves had been at work on
his car. “They’ve stolen the steering
wheel, the accelerator, the clutch ped
al and the dashboard,” he complained.
The police sergeant said he would
investigate and hung up.
The telephone rang again.
“Don’t bother,” said the same voice,
this time with a hiccup. “ I got into
the back seat by mistake.”
A

S p e a k in g P a rt

N e x t E le c tio n

T im e

H e l lo

O u t!

o r th w e s t e rn Banker, June, 1965
Digitized forN FRASER
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

G o o d A d v ic e

young fellow who had moved to ^
a city about a thousand miles from
his home town went into business.
He wrote a number of letters to his
father-in-law, a successful merchant,
soliciting advice on how to conduct «
his new venture and received numer
ous replies giving him the counsel
he had sought. “And remember,” one
letter of advice suggested, “if you find
yourself in dire difficulties be sure to
communicate with me immediately
and I’ll tell you what to do.”
Sure enough, the time came when
the young fellow went broke. “You
told me,” he then wrote to his fatherin-law, “to communicate with you if
I got into trouble and you’d tell me
what to do. Well, I followed your ad- ,
vice in running my business and now
I’m busted. What should I do?”
Back came a wire: “Just act like
you are busted.”
A

“Dad, guess what? I’ve been given
my first part in a play,” said the bud- ,
ding young actor. “ I play the part of ■
a man who has been married for 25
years.”
“That’s a good start, son,” replied
the father. “Just keep at it and one y
of these days you’ll get a speaking
part.”

A politician thinks of the next elec
tion; a statesman of the next genera
tion.
A person with an hour to kill usu
ally spends it with someone who can’t
spare a minute.

S ix th S e n s e

Locker room attendants at the nation’s country clubs are an efficient,
well-trained lot.
One Saturday evening, an attendant
answered the telephone and heard a
female voice inquire, “Is my husband
still there?”
“ No, ma’am,” replied the attendant
promptly.
“How can you say he isn’t there w
before I even tell you who I am?” de
manded the angered woman.
“ It doesn’t make any difference,
lady,” came the reply. “There’s never
anybody’s husband here!”

“Don’t forget to drop by the bank and
pick up your travelers checks.”

D ere

They say money can’t buy friends,
but it sure improves your class of
enemies.

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

This is how it works

NEW
BANK
SE R V IC E !
Central States

A courteous Central States
representative calls on
your customers and explains the
protection and the
premium arrangem ent. . .

Customers who decide to buy one of
the new Central States life
coverages sign a checking account
deduction form . ..

LIFE
INSURANCE
FOR RANK
CUSTOMERS

Each month Central States sends you
a list so that your bookkeeping
department makes monthly
deductions simply and f a s t .. .

You send only one check each month
to Central States . . . retaining a
substantial fee for performing
the service.

More than 1000 banks participate in our Bank Health program which
operates this same way. May we provide further details to you? Simply
write or phone 346-7500, Area Code 402.

Ce n t r a l States
H e a l t h &L if e C o .
of Om aha
T. LESLIE KIZER, President
CENTRAL STATES INSURANCE BUILDING
HOWARD AT 18TH STREET • OMAHA
INSURANCE UNDERWRITERS THROUGH FINANCIAL INSTITUTIONS

write
or
call...

Municipal Bond Service: always a little faster
Yes, the Municipal specialists in our Bond Department are
always willing to help any and all of you with your bond problems.
These specialists are well qualified to analyze and evaluate
your present bond holdings, and will be glad to help you plan
fo r future investments.
Our Bond Department offers Municipal and Government
Bonds for sale. We provide fo r the safekeeping of these
valuable securities.
Evaluation, p la n n in g and safekeeping . . . these are the three
key words in our Bond Department. A nd remember, too, our
team of correspondent bankers is always ready, willing and

able to help. Just write, wire or phone us. How about today?

Jerry Nelson

Bob
Buenneke

George
Harnagel

Ben Eilders

W e're here to help you get w hat you w ant

IOWA DES M Q X H E S -N A T IO N A L
Sixth and Walnut, Des Moines, Iowa • CH 3-1191

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Federal Reserve Bank of St. Louis

BANK

Member Federal Deposit Insurance Corporation