The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
ifilili
Officials Cut Ribbon
For $110 Million
Bank Building
— Page 115
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
CHOOSING A CITY CORRESPONDENT?
Select one with
data processing
capabilities
to meet
all your needs.
Data processing equipment is extremely expen
sive but there’s no reason why you shouldn’t
have it at your disposal through your city corres
pondent. Indeed, for the speediest and most
modern banking, you should demand it.
Other features to demand of a city correspondent
are:
1. Overline services that meet your needs;
2. An International Department to help you
help your customers with their foreign trade;
3. Investment counseling that meets your stan
dard of performance;
4. Safekeeping that services as well as protects
your securities.
MNB has these services and continues to add to
them as new banking ideas become practicable.
So when you choose a city correspondent, do
what over half of the banks in Iowa do — bank
at MNB.
MERCHANTS NATIONAL BANK
so many ways we can help you
CEDAR RAPIDS, IO W A 52401
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
3
Bond Po
Could computer
analysis boost
your profits?
A sk the m en
w h o w rote the b o o k .
Your b a n k ’s bond portfolio, given the proper care and
attention, can provide a significant portion of your
b a n k ’s profits.
T h e N o rth ern T ru st’s n e w ly developed B o n d Portfolio
A nalysis Service for evaluating all bonds in your portfolio
can help you produce m axim um net earnings w ith m inim um
dem ands on your organization.
T h is n ew service com bines m odern m anagem ent science
techniques, com puter technology, and our extensive
experience w ith our ow n bond portfolio. U sin g these skills,
your N o rth ern Trust banker w ill w ork closely w ith you to
develop an investm ent program that suits your precise needs.
For further inform ation, contact your N o rth ern Trust
banker w h o w ill be pleased to discuss this service w ith you—
or call N . H all Laym an, V ice President.
..
Trust Northern...
A ll your m oney matters matter to us.
NORTHERN
u tili
TRUST
COMPANY
S BANK
5 0 S. LASALLE STREET AT MONROE
C H IC A G O 6 0 6 9 0
• F in a n c ia l 6 - 5 5 0 0
• M e m b e r F .D .I.C .
N o . 1165. N o rth w e ster n B an k er is p u b lished five tim e s a m on th by th e N o r th w e ste r n B a n k er C om pan y, 306 F ifte e n th S treet, D es M oines, Io w a 50309.
^ S u b s c r ip t io n 50c p er cop y, $6 p er year. S econ d cla ss p o sta g e paid a t D es M oines, Io w a . A dd ress a ll m a il (s u b scrip tio n s, c h a n g e o f ad dress, F orm 3579,
m a n u sc r ip ts, m a il ite m s) to ab ove address.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
W e pay
this man
to watch over
your
bank
The moment you become a
Scarborough patron, w e assign
a bank counselor in our office to
your bank. He is your "M r. Inside."
By telephone, mail, and wire, he
keeps in touch w ith your bank—
and w ith "M r. O utside," the
Scarborough man w h o calls on you. Mr. Inside maintains a
continuously updated file on your bank. He does his utm ost to
see that you are always insured for your current risks and
exposures, not for those of 5 or 1 0 years ago.
He is always w atching out for a new situation w ith in
your bank that could leave you unprotected—and to keep you
abreast of any new ly developed cover pertinent to your bank.
He studies your changing operations to see that your
insurance program is never pennywise at the operational level
where peanuts are involved—at the expense of unprotected
risks at the higher levels where embarrassing losses occur.
He regularly reviews your setup to keep your experience
credit up, and your losses and premiums dow n . . . Mr. Inside
is always on your side. It pays us w ell to pay him just for that.
In the last 4 years, the banking com m unity has again doubled
its patronage w ith us.
One banker said, "I never dreamed such a com pletely
dedicated insurance service could be available to our bank."
W e'd like some day soon to appoint a "M r. Inside" to
w atch over your bank.
5 0 years of insuring banks only
Scarborough
Scarborough & Company, 33 N. Dearborn St., Chicago 60602
No for
rthwestern
Digitized
FRASER Banker, June, 7969
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
5
S ix W o rk sh o p s in D en ver
A series of six w orkshops have been
scheduled for th e w eek of Ju n e 23-27,
in D enver, at th e D enver H ilton H otel.
^ T h e w ork sh o p s w ill be open to b a n k
ers w ith a t least one y e a r’s experience
in th e re le v a n t area, from b an k s w ith
assets of $50 m illion or m ore, an d are
sponsored b y th e B ank A d m in istra
tion In stitu te .
k The six w ork sh o p s have been sched
uled on C osting E D P Services, C redit
* ^ a r d s A udit and Control, B ran ch Of
fice A dm in istratio n , A sset M anage
m ent. T he T ru s t A udit F u n c tio n and
M anaging th e E D P F unction.
In s titu te w ork sh o p s are brain sto rm ~ > ing even ts for experienced personnel,
lastin g tw o and a h a lf days, a t w hich
^ "a group of from eight to 15 people
m eet u n d e r th e ch airm an sh ip of an
experienced b an k er. T h ere are no
. ^ form al program s.
T hree w o rkshops w ill ru n all day
-►Hune 23 and 24, and th e m o rn in g of
Ju n e 25.
A* F o r fu rth e r inform ation, w rite T he
R eg istrar, B ank A d m in istratio n Insti~ * tu te, P. O. Box 500, P a rk Ridge, 111.
> 60068.
T w o M ore M arks P assed
F irs t S ecurity G row th F u n d , Inc.,
' 'a m u tu a l fund, has passed th e $4-million m ark in n e t assets and th e 800,000
shareh o ld er m ark as it contin u es its
rap id grow th.
The F u n d is m anaged by F u n d Managem ent, Inc., a w holly ow ned subsid
ia ry of F ir s t Mid A m erica Inc., an in" * v estm en t b an k in g firm w ith h e a d q u a r
te rs offices in O m aha and Lincoln.
Y
L atest figures released in early May
> by C harles F. H eider, p re sid e n t of th e
F und, show n e t assets now sta n d at
4 m ore th a n $4,800,000 w ith a to ta l of
802,000 sh ares outstanding.
► F irs t S ecurity G row th F u n d , Inc.,
began public sale of sh ares last Sep
te m b e r.
T he last rep o rted figures from th e
sem i-annual re p o rt to stockholders an+ nounced re c e n tly show ed $3,352,000 in
n et assets.
C o rrection
A special article in th e A pril issue
of th e N orthwestern B anker w as id en
tified as being au th o red by C harles C.
Sm ith, senior vice p resid en t in charge
of m ark e tin g developm ent for Irv in g
'T r u s t Com pany, N ew York.
T he article, “R evolution in B ank
^Profit Sources U nderw ay,” w as au
th o red by Mr. Sm ith; how ever, he is
senior vice p resid en t, m a rk e t develop
m ent, for B an k ers T ru s t Com pany,
N ew York.
f W e re g re t th e in co rrect identifica
tion.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
O ld est F in a n cia l J o u rn a l S erv in g
T h e C entral and W estern States
for your JUNE, 1969, reading
7 5 th Year
No. 1165
FEATURES
8
B a n k P ro m o tio n s a n d C h an g es
13
C o n v en tio n s C a le n d a r
14
29
C o rp o ra te N ew s
B asic C oncepts in B a n k M a n a g e m e n t— A llen P. S tu lts
30
M e a su rin g P ro fita b ility o f A cco u n ts R eceivable
32
H ow a C o u n ty S e a t B an k F in a n c e s S m all B u sin esses
33
C h icag o ’s R igged V o tin g O K ’s “ R ig h t B a n k on th e L e ft B a n k ”
— S tep h en S. D iamond
— K eith E . Roberts
34
H ow W e H it $30 M illion in 13 Y e a rs— M rs. Doris J. Capps
36
1969 C ould Be L a n d m a rk Y e a r— W illis W. A lexander, Jr.
38
In s u ra n c e — M oney $ M oney $ M oney $— R obert J. F lorin
47
M in n eso ta B a n k e rs C onven tio n P ro g ra m
50
54
M in n eso ta C onv en tio n C om m ittees
T w in C ity N ew s
63
S o u th D a k o ta B a n k e rs E le c ts C u rtis A. L ovre — B en Haller, Jr.
70
Al K. S im pson H e a d s N o rth D a k o ta B a n k e rs
73
74
C olorado N ew s
W yo m in g B a n k e rs C o nvention P ro g ra m
76
Y ou W ill See T h em a t th e W y o m in g C onvention
78
M o n ta n a B a n k e rs C onv en tio n P ro g ra m
STATE BANKING NEWS
— Malcolm K. F reeland
80
Y ou W ill See T hem a t th e M o n ta n a B a n k e rs C o nvention
83
A don Je ffre y Is E lected N e b ra sk a A sso ciatio n P re s id e n t
92
L incoln N ew s
— B en Haller, Jr.
94
O m ah a N ew s
99
Io w a G roup M eetin g 'Report— Malcolm Freeland
108
D es M oines N ew s
113
Illin o is C onv en tio n R e p o rt a n d P ic tu re s — Malcolm K. F reeland
NORTHWESTERN BANKER
306 15th S treet, Des Moines, Iow a 50309, Telephone (A re a Code 515) 244-8163
C h a irm an
Clifford De Puy
P ublisher
Malcolm K. Freeland
E d ito r
Ben J. H aller, Jr.
A ssociate E d ito r
Barbara Franklin
A d v e rtisin g A s s ista n t
Mildred Savich
Field R e p rese n ta tiv e
AI Kerbel
C irculation D e p a rtm e n t
Lena Sutphin
F ield R e p rese n ta tiv e
Joe M . Smith
A u d ito r
Bertha Soderquist
F ield R e p re se n ta tiv e
Paul Masters
Frank P. Syms, Vice President, 663 Fifth Avenue. New Vork 10022, JUdsen 2-7126
Northwestern Banker, June, 1969
Should BCLbe this big &
healthyin just 5 years?
National statistics for growth of insurance companies say no.
But BCL management, agents and policyholders say yes.
A
So here after Year 5 we share the picture with you.
A picture of happily climbing sales totals, but also with financial growth in
assets and income that's sound, balanced and stable.
Do you fit into the BCL picture anywhere ? As stockholder, agent or staff?
If so, call, write or visit the home office.
1964
1965
1966
BCL licensing
in 13 states
expands
agent
opportunities
No rthw este rn Banker, June, 1969
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
>-
UP
655%
UP
503%
UP
386%
o
o
o
o
o
o
o
O
O
O
Ö
o
o
o
o
o
o
c\T
LO
CM
CO
</>
00
<J>
UP
830%
<r>
;-o
^AS,0 1967
1968
BCL's IBE program steps up service and benefits to banker-agents w ith
greater
variety of protection plans, including group hospitalization and medical co ve ra g e ^
more efficient automated and computer-geared home office operation
enlarged
marketing territoryifcdirect access problem solver personnel ^generous commissions
sfcsame basic contract for all banker-agents
attractive agent incentive program.
$R
G ro w a lo n g w ith B C L —g e t in on the a ctio n n o w . . .
y
B ankers Capital L ife
INSURANCE
COMPANY
2800 Wayzata Boulevard, Minneapolis, Minn. 55405 • (612) 377-9050
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Northwestern Banker, June, 1969
8
Hank P rom otion s and Chanfles
P
ROMOTIONS and annou n cem en ts
have been m ade by th e follow ing
banks:
Bank of N ew York, N ew York: Rob
e r t N. K ay and J e rry O’B rien have
b een elected vice p resid en ts and Carl
L a iesk i has been prom oted to in v est
m en t officer. Mr. K ay and Mr. O’B rien
are in th e tr u s t departm ent.
C hase M anhattan Bank, N ew York:
A ppoin tm en ts to vice p resid en ts w ere
annou n ced last m onth for G. E d w ard
F reem an, Jr., R obert H. R iley and
T h om as H. H ark in s. Mr. F re e m a n is
in th e tr u s t d ep artm en t. Mr. R iley is
d irecto r of m a rk e t research and cen
tra l info rm atio n divisions. Mr. H a r
k in s is m anager of th e g eneral secu ri
tie s d ep artm en t.
C om m erce T rust C om pany, K ansas
C ity, Mo.: R ichard H. M uir, 36, and
R o b ert L. B aker, 28, have been elected
a ssista n t vice p resid en ts in th e c o rre
sp o n d en t b an k in g departm en t. Mr.
M uir h as been assigned to Iow a and
N ebraska. Mr. B aker has been as
signed to K ansas.
A n ativ e of Sioux City, Mr. M uir
w a s a ssista n t cashier at th e Security
N ation al B ank th e re before joining
R. H . M U I R
R. L . B A K E R
Com m erce T rust. He received his B.S.
degree from M orningside College in
1957.
Mr. B aker w as g raduated from K an
sas S tate U n iversity in 1961, th en
w orked at Com m ercial N ational B ank
a t K ansas City, Kan., and U nion N a
tional B ank, M anhattan, Kan., before
jo in in g Com m erce T rust.
and w ill continue in th e in stallm en t in
tending division. Mr. W ozek sta rte d
w ith D rovers in 1955. He w ill con- T
tin u e in operations w ork.
F irst N ational Bank, Chicago: The
follow ing prom otions w ere announced-*
by the board of directors last m onth:
M arion C. E nglish to vice p resid en t *
and general auditor, W. Gale H igh to
vice p resid en t and deputy com ptroller,
Roy E. Johnson to vice p resid en t in , „
th e com ptroller’s division, W illiam H.
E. Voss to vice p resident and auditor«
in th e au d itin g division.
f
C ontinental Illinois N ational B ank
& Trust, Chicago: T hree officers re
tire d last m onth after serving m ore
th a n 40 y ears each in com m ercial and
tr u s t banking.
B u rn ell G. K ern, a ssistan t cashier,
and O ran J. Radford, second vice
president, served 48 and 44 years, re
spectively, in C o n tinental’s com m er
cial d ep artm ent. A lfred F. H uels, as
sista n t secretary, com pleted 44 years
in th e tru s t and op eratin g d ep art
m ents.
D rovers
N ational
Bank,
M . C. E N G L I S H
W . G. H I G H
A. E . L A N G E N B A C H
J. H . L E O N A R D
Chicago:
O rvin E. N elsen has been prom oted to
vice president, it w as announced by
B oard C hairm an W illiam C. Cum
m ings and P resid en t R obert Lough.
Mr. N elson began his career w ith
Ja y L. Doty to vice p resid en t in Di
vision “A ,” W illiam J. McDonough to*
vice presid en t in the in tern atio n al sec*
tion, George S. R obinson to vice
presid en t in th e inform ation system s
group.
A
A lfred E. L angenbach, vice p resi
dent, from personnel to a new position f
in th e adm in istrativ e d ep artm en t staff
as a ssistan t to R obert K. Wilmouth^-v»
senior vice president, adm inistration.
Jam es H. Leonard, vice president, to t - J
succeed Mr. L angenbach as head of
the personnel division.
O. E. N E L S E N
W R IT E
FOR
D E T A IL S
•
STUDLEY, SHUPERT
TRUST INVESTMENT COUNCIL
8 6 0 S u b u r b a n S ta tio n B u ild in g
P h ila d e lp h ia , P a . 1 9 1 0 3
Northw e s te rn Banker, June, 1969
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
L. E. M A K O B E N
D rovers in 1941. He has served as an
assista n t vice presid en t since 1966.
P rom oted to assistan t cashiers w ere
L a rry E. M akoben, F ra n k C. Mulch
and M ichael D. Wozek. Mr. Makoben,
of B ettendorf, Iowa, w ill continue to
serve in th e correspondent ban k divi
sion w h ere he is w ell-know n to m any
Iow a and Illinois bankers. He w as
cashier of B ettendorf B ank and T ru st
Com pany before joining D rovers in
A pril, 1968. He is a native of D urant,
Iowa.
Mr. M ulch joined D rovers in 1964
F irst N ational City Bank, N ew - -f |
York: Jam es F. M arx and Jo h n M.
W albridge w ere elected vice presi- •<
dents last m onth in th e corporate
b anking group. Mr. M arx is a u n it * ~
head in the petroleum departm ent, _
w hile Mr. W albridge is a u n it head in
th e consum er durables departm ent. >. —
L aSalle
N ational
Bank,
Chicago; v
M ilton F. D arr, Jr., chairm an, and
F ra n k G. Price, president, announced
last m onth th e follow ing official
changes:
D elm ar R. B eaum ont, form erly vice
president, to senior vice presid en t and1"
9
y
~►
-
>
fr V
Portfolio review?
There'sjust
one manto call
_Your
Chaseman
Chaseman George Woodnorth has on
tap a specialized staff of investment analysts
second to none. They’ll give your bank’s
portfolio the periodic review so essential
to maximum return on investment.
They review your portfolio with the
whole investment environment in mind,
keeping in view your own special
requirements. Call on Chaseman
Georgs Woodnorth for portfolio
review. And he’ll be happy
to provide the personal or
banking services Chase
Manhattan is so proud to offer
—nationwide or wherever
in the world you or your
customers need help.
K
> »
CH A SE
W
MANHATTAN
BAN K
N .A ./l Chase Manhattan Plaza
New York, N.Y 10015
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
No rthwestern Banker, June, 1969
10
Close doesn’t count in
our portfolio management.
continuing as m anager ©f th e real es- V
tate loan departm ent.
Lewis G. H anson, Jr., to vice p re si
dent and Jo h n E. M acA rthur to assist- t „
a n t v ic e p r e s i
dent, both in the.ni
c o r re sp o n d e n t
b anking division. ^
Jo h n L. Woodw orth, m etropoli
ta n division, and _
W illiam F. Hoff
m an, Jr., m arketing, research and
d ev elo p m en t fgroup, both to as
D . R. B E A U M O N T
sistan t vice presi- * "
dents.
George T. Ñecas o tru s t tax officer.
In fact, our analysts’ recommenda
tions have to be more than right; they
have to be right for you. So we make
an in-depth study of your investment
portfolio before suggesting specific
bonds. That way we can tailor our
advice to your needs and strengthen
your entire investment program.
If we settled for “ close” in our
work, we wouldn’t have results like
the 46.3% net earnings increase one
correspondent bank enjoyed the ini
tial year after our study. And as for
National Boulevard’s own perform
ance in the bond market, we’ve aver
aged an eye-opening 4.74% pre-tax
investment return over the past nine
years, and no security losses.
Get the full pitch on our invest
ment portfolio analysis services with a
phone call to Charlie Schoeneberger.
You’ll see that our kind of individual
ized attention recognizes that you’ve
a great deal at stake. And portfolio
management is no place for ringers.
L. C. H A N S O N , JR .
J. E . M a c A R T H U R
Mr. H anson, w ho has been w ith th e
correspondent ban k in g division since
1959 and is La Salle’s correspondent
rep resen tativ e in Chicago and th e m et
ropolitan area, w ill assist in serving
banks in th e state of W isconsin.
Mr. M acA rthur has been associated
w ith the b ank for 10 years, serving in -A
all dep artm en ts of the bank, w ith five
y ears as a lending officer. He attended
P u rd u e U niversity and is a g raduate
of th e A m erican In stitu te of B anking.
Mr. M acA rthur is La Salle’s corre
spondent rep resen tativ e in th e state
of Indiana, southw est M ichigan and A
eastern Illinois.
NATIONALBOULEVARD
BANK OFCHICAGO IS
400-410 N. Michigan Ave. Phone 467-4100 • M em ber FDIC
M organ G uaranty T rust Com pany, *
New York: George E. C ru ik sh an k h a ^ , ^ (
been appointed a vice presid en t and
has been assigned to th e econom ist’s r _
departm ent. He w as form erly a gen
eral editor of U. S. N ew s & W orld * •*
Report.
N ational B oulevard B ank of Chica
go: Five prom otions have been a n -*'-•*
•X
V'
J. W . B E U T E L
Northwestern
Banker, June, 1969
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
nounced f o llo w
ing a board of directors m eeting.
^
Jam es W. Beutel, m a n a g e r of ,__
th e b a n k ’s com pu
te r c e n t e r , w as^V
elected an assist
a n t v ic e p r e s i- W
dent.
^
E l e c t e d assist
a n t cashiers were: x
Louis E. A very
13
^ and W illiam A. M ulvihill, co u n ter op
erations, and R ichard T. Schroeder,
com m ercial departm en t.
E d w ard G. Griffiths w as elected an
electronic services officer.
*-
Secu rity Pacific N ational Bank, Bos
A ngeles: F ra n k V. Cahouet, vice pres-
^ dent, has been assigned to th e b a n k ’s
in te rn a tio n a l b a n k i n g d ep artm en t,
head office. He w ill w o rk w ith R. J.
, >F lam son, III, vice p resid en t in charge
of in te rn a tio n a l b an k in g in coordinat>ing th e estab lish m en t of a S ecurity P a
cific b ran c h in London, E ngland.
- * Also in th e in te rn a tio n a l b an k in g
d ep artm en t, F ra n c is G. M artin w as
elected a ssista n t vice president, head
office.
W illiam G. Moore and Jam es D.
> W ickerm an w ere elected a ssista n t vice
presid en ts in b ran ch operations.
U n ion Bank, Los A ngeles: W illiam
R. H ow ell has been elected executive
> vice p resid en t and Sam uel B. S tare
^ h a s been prom oted to senior vice p re s
ident.
>v
C O N V E N T IO N S
J u n e 9-11—M innesota B ankers Assn.,
79th A n n u a l C onvention, H ilto n
H otel, St. P aul.
Ju n e 10-13— C harge A ccount B an k ers
A ssn., 16th A n n u a l C onvention,
C entury P laza H o tel, Los A ngeles.
Betw een Bank . .
and W a re h o u se
Ju n e 11-12—N a tio n a l Assn, of B ank
W om en, Inc., R ocky M ountains,
W estern
R eg io n al
C onference,
F ro n tie r H o tel, Las Vegas.
Ju n e 12-14—W yom ing B ankers Assn.,
61st A n n u a l C onvention, Jackson
L ake L odge, M oran.
Ju n e 19-21 — M ontana B an k ers Assn.,
66th A n n u a l C onvention, Jackson
L ake L odge, M oran.
S eptem ber 10-11—Iow a G ro u p M eet
in g , N a tio n a l A ssociation of B ank
W om en, R oosevelt H o tel, C edar
R apids.
Sept. 21-25— N a tio n a l Assn, of B ank
W om en, Inc., 47th A n n u al C on
v e n tio n , St. F ra n c is H o tel, San
F rancisco.
Sept. 28 - Oct. 1 — A m erican B ankers
A ssociation, 95th A n n u a l C onven
tio n , H o n o lu lu .
Oct. 19-22—Iow a B ankers A ssociation,
83rd A n n u al C onvention, H otel
F o rt D es M oines, D es M oines.
Oct. 25-29— R o b e rt M orris A ssociates,
55th A n n u a l F a ll C onference, San
Ju a n , P u e rto R ico.
VIC cuts Red Tape with Plan
The security specialists, Douglas-Guardian, have cut red tape
on inventory loans under the U niform Commercial Code w ith
a new VIC system. VIC is Douglas-Guardian's exclusive m ethod
o f Verified Inventory Control, a tim e- and cost-saver for years.
N ow VIC can offer PLAN III w hich perfects security on ware
housed inventory minus the tedium of signs, stack cards, leases,
mortgages, waivers and subordinations. V IC s PLAN III is sim
p lifie d and direct. Get the details today. Call or w rite :
Oct. 26-29— B ank A d m in istra tio n I n
stitu te, 45th A n n u a l C onvention,
S h e ra to n C leveland H o tel, C leve
lan d .
Nov. 2-7—B ank PR M A , 54th A n n u al
C onvention, A m e r i c a n a H o tel,
B al H a rb o u r, F la.
Nov. 16-18—A BA 18th N a tio n a l Ag
C re d it C onference, H o te l F o rt
D es M oines, D es M oines.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
DOUGLAS-GUARDIAN WAREHOUSE CORP.
P. 0 . Box 52 9 7 8 , New Orleans, La. 70150 • Phone 5 0 4 -5 2 3 -5 3 5 3
Offices in 15 Principal Cities
Northwestern Banker, June, 1969
14
The new u n its also speed up out-oftow n calls from m erch an ts for Tow n r ,
& C ountry cardholders m aking p u r
chases elsew here u n d er th e coopera- *. tive In te rb a n k netw ork, in w hich
Tow n & C ountry and M idw est Bank* *rCard participate.
These calls now
tak e tw o to th ree m inutes to com- r~
plete, com pared to four to seven min- ^
utes previously.
<-
Corporate News
ORPORATE prom otions and an-^r —
nouncem ents of special in te re st to
read ers of th e N orthwestern B anker i
include th e following:
A m erican E xp ress, N ew York: J. R. v *
C ullen has been appointed vice presi- ^ _
dent-finance of AM-EX E x p ress R es
ervation Services, Inc., a wholly-d
ow ned subsidiary. He w ill be head
q u artered at the sub sid iary ’s com puter ■*
center in M em phis, Tenn.
C
THESE UNITS autom atically route incom ing calls fo r cred it cards in connection w ith
C on tin en tal B ank’s Town & C ountry Charge Card service fo r m erchants.
1'harye t a r d A a th a riza tia a
itei/n osts H an dled .1 a t innati v a ti y
F CHICAGO-AREA m erch an ts are
gettin g over-the-floor-limit charge
ca rd purch ases approved even faster
th ese days at T ow n & C ountry
C harge, i t ’s because th e ir calls are
being processed autom atically.
Tw o suitcase-sized electronic u n its
on one desk have replaced a largem an u a l telephone sw itchboard in the
T ow n & C ou n try C harge a u th o riza
tio n cen ter at C ontinental Illinois N a
tional B ank and T ru st Com pany. The
u n its form a new call d istrib u to r sys
I
N o rth w e s te r n Banker. June, 1969
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
tem w hich autom atically ro u tes calls
from m erchants checking a card-hold
e r’s credit to telephone positions in
th e center.
The system w as designed join tly by
Tow n & C ountry Charge and Illinois
Bell T elephone Company.
One u n it, th e d istrib u to r, deter
m ines w hich line or lines have been
open th e longest and sends new calls
to them . I t also holds, by use of a
pre-recorded m essage, up to six calls
at once on one line if all lines are busy
at peak hours.
The o th er u n it keeps a record of all
calls a t each telephone position and
adds a cum ulative total for the day,
p e rm ittin g easy evaluation of em
ployee perform ance and call volum e.
L ights on th e m ain u n it indicate
th e activ ity at each position, enabling
su p erv isors to m onitor and control
th e system , answ er calls them selves
if necessary and check the q u ality of
each o p erato r’s perform ance.
The u n its are th e latest im prove
m ents in M IRA (M erchants In sta n t
R esponse A uthorization) a co m p u ter
ized on-line credit au th o rizatio n sys
tem . M IRA consists of a series of
telephone positions equipped w ith vis
ual display u n its and typew riter-style
keyboards linked to a com puter,
w hich has inform ation on all chargecard accounts.
M e r c h a n t calls previously took
about 40 seconds to com plete th ro u g h
th e m anual sw itchboard. T he distrib
u to r reduces th a t tim e by about 25
p er cent, Tow n & C ountry C harge offi
cials said.
B ank B u ild in g & E q u ip m en t Corpo- F
ration, St. Louis: L. J. Orabka, chair-
m an, has announced his re tire m e n t as
an officer effective Ju n e 1. He w ill^_
m ain tain an office
at com pany head-—
q u a rte rs in his ca
pacity as b o a r d
chairman and
ch airm an of th e
executive c o m m it-^
tee. He w ill also
be a co n su ltan t to*r *th e firm ’s l o n g range planning *
com m ittee.
L . J. O R A B K A
M r. O r a b k a ' '
joined the com pany in 1914, one y ear A
after its founding. He becam e vice
presid en t in 1937, executive vice presi-^ dent in 1943, and w as advanced to th e
presidency in 1960 follow ing the death? A
of Joseph B. G ander, founder of the
com pany. He served as ch airm an
since May, 1964.
Carobus & F redericks, Inc.: A D es
Moines office has been opened a t 1100* *
K eosauqua and w ill be u n d er th e su
pervision of S outhard P. (Bud) Whit-"*
ing, w ho has been ___
appointed a vice
president. T h e t.
Chicago-based ad
v ertisin g a g e n c y - s p e c i a l i z e s in
comprehensive V
m a rk etin g s e r v
ices for financial ^
in stitu tio n s.
{
T h e announce
m ent w as made«, s
s. P. W H I T I N G
by C. T h o m a s
THE LAWRENCE
SYSTEM IS MONEY
IN YOUR BANK
How? In just this way!
For years lenders have shied away from making many types of inventory and accounts receivable
loans, despite high yields, because of undue risks.
The yields are still there. And Lawrence has removed the risks.
Our multiple collateral control services designed for use singly, or in combination, enable the
lender now to grant such loans absolutely confident that no loss will occur due to the disappearance
of the collateral.
Among these services are:
Field Warehousing
Certified Accounts Receivable Service
Certified Inventory Control
Secured Distribution®
Document Control Service
Inventory Control Service
So when considering a collateral loan application, call Lawrence! It can mean money in your bank.
lawrenceWarehouseCamMiw
C E R T IFIE D
N A T IO N W ID E
COLLATERAL
CONTROL
FIE LD W A R E H O U S IN G
S E R V IC E S
S IN C E 1913
i
37 Drumm Street, SAN FRANCISCO
122 East 42nd Street, NEW YORK • 100 North La Salle Street, CHICAGO
OFFICES IN PRINCIPAL CITIES
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Northwestern Banker, June, 1969
16
Florence, Italy
on-the-spot refunds in 8 places...
Florence, Alabama
on-the-spot refunds in 5 places.
The Everywhere
WORLD’S BIGGEST SELLING BANK CHECK r,R,TNA1r,0'ML0,TYBANK-1™
Worldwide, only First National City Travelers Checks has over
28,000 on-the-spot refund points. No other travelers check
comes near this figure. Check the box at the right to see the
thousands more locations all around the world where your
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They’ re more profitable to you because of our generous com
mission schedule. You keep 100% of the commission on all
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First National City Travelers Checks are presold at home and
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hard selling point-of-sale posters and materials that promote
First National City Travelers Checks in your bank —plus pro
motional aids that sell your other services. All free of charge.
Northwestern Banker, June, 1969
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
1■"'•“•'•e-
Acceptability? First National City Travelers Checks are issued
by the leader in worldwide banking. So, they're known ancP
welcomed everywhere your customers go—in more than a mil- ,
lion places around the globe!
They’re available to you in the widest range of denominations. r‘
And, if you wish, pre-packaged checks are available in both
“ five packs” and “ ten packs.”
Available everywhere. Acceptable everywhere. R e fu n d a b le
everywhere.. .The Everywhere Check. When we say First
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If you're not already selling our travelers checks, phone collect v
to: Mr. Irving Johnson, First National City Travelers Checksf< v
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r* -
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on-the-spot refunds in 18 places...
on-the-spot refunds in 3 places.
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customers can get refunds fast
and in more places than with any
other travelers check. To show
our complete coverage, at right
are listed the number of our onthe-spot refund points by major
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North A m e ric a ...............
South America.................
Central America &
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1,100
1,160
28,848
First National CityTravelers Checks
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Northwestern Banker, June, 1969
18
F rederick s, president, and George H. rate staff as special a ssistan t to the
Dempesy, executive vice president.
p resid en t and a corporate vice p resi
T hey also announced th e ap p o in t dent. Since 1942 he has been w ith The
m ent of E d w ard L. H am m erm an as Babcock & W ilcox Company, serving
an account executive at Chicago head since 1963 as vice president-m anufac
q u arters.
tu rin g , pow er generation division.
Mr. W h itin g is a Des M oines n ative
F ir st Mid A m erica Incorporated,
and w as p reviously an account execu L incoln, Nebr.: A b ran ch office has
tive of th e F irs t F in an cial M arketing been opened in K ansas City, Mo., at
Group, providing prom otional m a te ri 787 TenM ain Center. R ep resenting th e
als for banks. He w ill con cen trate on firm th e re are George A shby and
serving financial in stitu tio n s in Iowa, Lloyd M ayer, form erly w ith Paine,
N ebraska, M innesota and M issouri.
W ebber, Jackson and C urtis, and B.
Mr. F red erick s said his firm is ex C. C hristopher.
ten d in g th e experience it has gained
F irs t Mid A m erica has h ead q u arters
from serving 35 Chicago area financial in L incoln and Om aha and has other
in stitu tio n s to b anks in o th er states,
offices th ro u g h o u t N ebraska and Iowa.
and com bining th is experience w ith
It is a m em ber of th e New Y ork Stock
th e extensive graphic a rts services
E xchange.
available in Chicago th a t are difficult
W alter E. H eller & Company, Chi
to obtain elsew here.
cago: H ym an G. K anes has been elect
C om m uter A irlines, Chicago: Roilied a director to fill th e vacancy cre
son H. B ax ter w as elected president,
ated by th e sudden death in A pril of
L am ont B. R irie w as elected vice p res W alter E. H eller, 78, founder of the
ident and tre a s u re r and C. Jo h n S tein
firm. Mr. H eller
häu ser w as nam ed assista n t secretary
died ju s t one
by th e board of directors. Mr. B axter
w eek before the
had been senior vice p resid en t and
an n u al m e e t i n g .
has been serving since F e b ru a ry as
Mr. K anes is p res
chief executive officer.
ident of N ational
D ial F in ance Com pany, D es Moines:
A cceptance C o mF irs t q u a rte r earn in g s of $768,132 w ere
pany of Am erica,
slightly ahead of th e $761,723 posted
a w h o lly -o w n e d
for th e sam e period in 1968. Notes
subsidiary of H el
and contracts receivable totaled $224,ler.
688,911, an increase of 16.3 p er cent.
N o r m a n R.
H . G. K A N E S
Diebold, Inc., Canton, Ohio —A ustin
S c h r e i b e r , presi
T. F ragom en, 50, has joined th e corpo- d ent and chief executive officer, paid
trib u te to Mr. H eller a t th e an n u al
m eeting. In his re p o rt to sh arehold
ers, Mr. Schreiber said th a t based
upon first q u a rte r and 12-month indicators, th e com pany is headed for its
seventh consecutive y ear of record
volum e and profits. H eller p resen tly
has $200 m illion in com m ercial p aper
outstanding, w hich is 101.7 per cent
covered by unused b an k lines.
m
**
M orris P lan C om pany of Iow a, Ce
dar Rapids: Stockholders of The M or
ris P lan of E au Claire, Wis., and G ray
S treet L easing Com panies, E au Claire,
have agreed in principle to a m erger
into M orris P lan Com pany of Iowa, a
diversified financial holding com pany.
T here w ill be no change in personnel
or policies. The m erg er w as effective
May 1.
W illiam M cIntyre and R andall Bezanson of E au Claire w ill continue to
be chairm an and p resid en t as w ell as
directors of th e E au Claire corpora
tion. In addition, P e te r F. Bezanson,
president, and R obert E. Johnson, ex
ecutive vice presid en t of The M orris
P lan Com pany of Iowa, w ill becom e
m em bers of th e E au Claire board.
G ray S treet L easing w ill becom e a
p a rt of The M orris P lan L easing Com
p any w ith com bined leases o u tstan d
ing of $5 million.
The M orris P lan of Iow a has total
footings in excess of $60 m illion. The
diversification includes Jackson State
B ank and T ru st Company, M aquoketa,
Iowa, 15 direct loan offices in Iowa, a
Kalman & Quail
knows some
smart cookies
W e th in k we h a v e a successful recipe for p ro
ducing in v e s tm e n t resea rch re p o rts on n a tio n a l,
p u b licly -h eld firm s based in th is region . . . like
P illsb u ry , D a y to n ’s, H . B. F u ller C o m p an y
an d over 60 o th ers. (And if y o u ’re in te re ste d in
m u tu a l fu n d s, y o u ’ll find us w ell-equipped to
help y o u m ak e a selection t h a t ’s based on a
carefu l an aly sis of y o u r in d iv id u a l in v e s tm e n t
goals.) W rite or call for our free research re p o rt
on P illsb u ry .
Investm ent B a n k in g / M u n ic ip a l B onds /
Investm ent M anagem ent / M u tu a l F u n d s /
L isted and U nlisted Securities.
A n E qual O pportu n ity E m p lo yer
Dain,Kalman &Quail
IN C O R P O R A T E D
No rthwestern Banker, June, 1969
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Investm ent
Mem ber
New
Research
Y ork S to c k
W ith
a Regional
Accent
E x c h a n g e / 1 0 0 D a m T o w e r , M p ls.
'
4
!
19
For farm lending institutions:
AgriStor
announces
the non-competitive
loan
AgriStor Credit Corporation is A. O. Smith’s
non-competitive loan program. It helps
farmers get started on a profit-building
Harvestore feed processing system when
local lending limits or other complications
temporarily stand in the way. Which means
AgriStor doesn’t compete with banks or local
credit agencies. Because Agri-Stor loans are
designed to come back home to roost. Agri
Stor merely takes the slow turn on the con
tract. As the contract is paid down, local
lenders are encouraged to refinance the
balance. No penalty for prepayment. No
hidden fees. Simple interest equivalent is
used to determine the remaining amount a
customer owes. And the Harvestore system is
AgriStor’s sole collateral. This shows A. O.
Smith’s faith in its Harvestore system. And
AgriStor does not disturb the farmer’s
resources pledged to you on other loans. A
Harvestore Feed Processing System can help
farmers reduce feed costs. It also provides
greater flexibility in cropping and harvesting.
For more information, write today.
»-------------------------------------------------------------------------------------- 1
|f f l p m i t k HARVESTORE PRODUCTS, INC.
! 550 W. Algonquin Road, Arlington Heights, III. 60006
604
{ Please tell me how AgriStor and other lenders are helping local
i farmers buy Harvestores...and how it can help keep these
! farmers in my own banking family.
J
i
NAM E
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
No rthwestern Banker, June, 1969
20
Sm all B usiness In v estm en t Com pany
operating in a five-state m id w estern
area, and M orris P lan Leasing.
N e w t o n M anufacturing Com pany,
N ew ton, Iowa: R ay G. Jo hnston, vice
president, C entral N ational B ank &
T ru st Company, Des Moines, w as elect
ed a director of th e com pany last
m onth. T he firm, a d istrib u to r of ad
v ertisin g specialties and executive
gifts, had sales ending M arch 31 th a t
w ere $1 m illion h igher for th e fiscal
year th a n th e preceding year. A pril
sales w ere up 14 per cent. The board
declared a dividend of $60 p er share,
$10 p er share m ore th a n one year ago.
N orth C entral L ife In surance Com
pany, St. Paul, Minn.: N orm an L.
STEER YOUR CUSTOMERS
TO THE LEADER IN
WORKMEN’S COMPENSATION
Employers Mutual was founded in 1911 to write Workmen’s
Compensation. From this start, Employers Mutual has expanded
its coverages to include complete protection for every commercial
or personal need.
But throughout its steady growth, Employers Mutual has re
mained JUhe leader in Workmen’s Compensation.
When your customers inquire about Workmen’s Compensation,
steer them to the most experienced company— Employers Mutual.
R e prese n te d b y 4000 In d e p e n d e n t A gents
Throughout The U n ite d S tates a n d Canada
Ahles has been appointed financial
agency su p ervisor for th e n o rth e rn
W isconsin area. He w ill be re p re se n t
ing creditor in su ran ce products m a r
keted u n d er N orth C en tral’s red shield
to financial institutions.
I t w as also announced th a t D arrell
E. B ergh and Tom W alsh have joined
N orth C en tral’s BOMA (Bank-O-Medic
A m erica) sales staff. Mr. B ergh w ill
rep resen t BOMA’s life and h ealth sales
in n o rth w e ste rn M innesota. Mr. W alsh
serves financial in stitu tio n s in the
Chippew a Falls, Wis., area.
Ozark A irlines, St. Louis: A u th o rity
has been received from th e Civil A ero
nautics B oard to serve D allas/F o rt
W orth, Tex., nonstop from Tulsa,
Okla., according to Thom as L. Grace,
president. Ozark recen tly also ac
quired au th o rity to serve D alla s/F o rt
W orth nonstop from St. Louis. In
au g u ral date has not y et been estab
lished.
H~
*\
■h
<V -
- -4
W
-V
H*C
Scarborough & Com pany, Chicago:
A ppointm ents of th ree m en as vice
p residents have been announced by
R ichard G. Ross, president. T hey are:
A<
N orm an Clark,
vice president, op
i"
erations.
A rnold A. Kne- M-L
bel , v i c e p r e s i
dent, ad m in istra r ~
tion.
J. R ichard Mor- 4
ran, vice p r e s i
d e n t , u n d e rw rit Z "
ing.
rs '
Mr. Clark has
N. c l a r k
been w ith ScarV-
T--Employers Mutual Casualty Company
Employers Modern Life Company
Emcasco Insurance Company
<r
Des Moines
l •
Union Mutual Insurance Company
Providence
Northwestern Banker, June, 1969
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
A. A. K N E B E L
J. R. M O R R A N
21
B e fo r e y o u d e cid e to len d , borrow ,
in v e st, d iv e st, m e r g e , lea se, o r w h atever,
y o u ’d b e tte r re a d th is book.
Some years ago, the head of our
Economics Department became
irked by the fact that no single
source of information existed on
which to base a sound judgment
of the credit markets.
Out of this feeling of frustration,
T h e Investment Outlook was born.
T h e Investment Outlook sounds
like a stock market tip sheet, but
i t ’ s not. E sse n tia lly , this book
traces the flow of funds through
the economy, showing how the de
mand for money is met, and where
the money is likely to go.
Statistics on every aspect of the
credit market are presented: gov
ernment securities, mortgage fi
nancing, corporate bond and stock
issues, and dozens of others.
T h e text and tables are carefully
cross-referenced and presented in
a form clearly understandable by
corporate financial officers and in
vestment managers.
Some of these statistics cite what
has happened in previous years,
thus inviting your own analysis.
M any others are detailed pro
jections of what we feel is likely to
happen during the coming year,
based on assumptions we make
about the economy as a whole.
Our projections are the result of
constant sifting of information
from a multitude of sources, in
cluding a number of seminars to
which we invite leading specialists
in various investment fields.
Processing the information from
these seminars, from our real
time computer, and from other
contributors, involves a size
able investment in a full-time
professional staff.
Part of the return on this invest
ment is the accumulated wisdom
which Bankers Trust applies to the
money market.
Th e other part is the satisfaction
of knowing that we’re performing
a valuable service to the business
community.
Th e Investment Outlook has
come a long way and is, we believe,
more valuable than ever. In 1949,
it was the most complete work of
its kind.
After twenty years, it still is.
I f you would like to receive a copy
of The Investment Outlook, please
write to Mrs. Sally S. Ronk,
Vice President, Bankers Trust
Company, Box 318, Church St.
Station, N.Y., N.Y. 70075.
You’ll find a banker at Bankers Trust.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Member Federal Deposit Insurance Corporation © Bankers Trust Company
22
borough 17 years, including th ree
y ears as vice president, u n d e rw ritin g
His new ly created position as vice
p residen t of operations reflects the
continued grow th in scope and volum e
of S carborough’s business.
Mr. K nebel’s business career in
cludes accounting and aud itin g posi
tions w ith Sw ift & Com pany in T oron
to and Chicago. He has been com p
tro ller of Scarborough for five years.
He is a grad u ate of th e N o rth w estern
In stitu te for M anagem ent.
Mr. M orran sta rte d w ith Scarbor
ough as an account executive in 1952.
He has served as a ssistan t vice p resi
dent of u n d e rw ritin g since Ja n u a ry ,
1968.
Scarborough is a 50-year-old org an i
zation specializing in in su rin g risk s in
th e ban k in g field.
St. P aul F ire and M arine In surance
Com pany, St. Paul: W averly G. Sm ith
has been nam ed executive vice p resi
dent. He has been w ith th e firm since
1949 and w as elected vice p resid en t in
1968.
T alcott N ational Corporation, Chica
go: G ustave L. Levy and H a rry R em is
w ere elected recen tly to th e board of
directors. Mr. Levy, w ho in mid-May
left his post as ch airm an of th e Board
of G overnors of th e New York Stock
E xchange after a tw o-year term , is a
p a rtn e r of th e in v estm en t ban k in g
firm of Goldman, Sachs & Company.
Mr. Rem is is ch airm an and chief ex
ecutive officer of Beggs & Cobb, Inc.,
B oston-headquartered p r o c e s s o r s of
le a th e r and related products, a Talcott
subsidiary.
H e rb e rt R. Silverm an, T alcott ch air
m an, rep orted an increase of 24 per
cent in earnings for th e first q u a rte r
of 1969.
T ension E n velop e Corporation of
Iow a, D es M oines: P hillip A. Goddard
has been nam ed vice p resid en t and
g eneral m anager. A 1943 graduate
of Iowa State U ni
versity, he joined
T e n s i o n as a
salesm an in 1951.
He w as prom oted
to sales m anager
in 1960 and w as
a p p o i n t e d vice
president a n d
sales m anager in
1968.
lit
Tension, estab
P. A . G O D D A R D
lished in 1923, is
Iow a’s oldest and largest business en
velope m an u factu rer. Offices are p res
en tly a t 1912 G rand A venue in Des
Moines, b u t a new 67,500 square foot
office and m an u factu rin g facility is u n
der con struction in th e P o rt Des
M oines In d u stria l P ark.
W o rld ’s F astest S can n er
B ank of A m erica announced it has
in stalled the w o rld ’s fastest optical
page scanning system — capable of
reading a 1,000-page novel in a m ere
six m inutes—at its data cen ter in San
Francisco.
The system rep resen ts a m ajor tech
nological break th ro u g h , and can read
and prep are inform ation for com puter
in p u t four tim es faster th a n any
equipm ent in existence, said A. R,
Zipf, B of A executive vice president.
The b ank is using the sophisticated
scanner to process th e trem endous
volum e of paperw ork generated at its
branches. I t can read six stan d ard
type styles at th e phenom enal ra te of
V 14.000 characters per second.
The scanner can finish in 10 sec
onds th e w ork perform ed by a key
punch operator in one day.
<~
Control Data C orporation’s R abinow
E n g in eerin g D ivision developed th e < -c
system for B ank of A m erica over a
f
three-year period.
Mr. Zipf said the u nprecedented ca < pabilities of th e page read er w ill al
low B ank of A m erica to process V tran sactio n docum ents from its 950
California b ranches w ith rev o lu tio n
ary speed and efficiency.
The electronic reading m achine’s 10
rapidly ro ta tin g lenses can scan a sin
gle-spaced 8% by 11-inch ty p ew ritten
page, fo rm at the inform ation for a
com puter, and store it on m agnetic
tape in tw o-thirds of a second. It
processes new account en tries and re
cords changes a t rates ranging from
10.000 to 25,000 p er hour.
M odern businessm en enjoy two solid advantages from
Leasing the business equipm ent they need:
1. Leasing conserves working capital.
2. Leasing leaves existing credit lines intact.
W hat else can M orris Plan Leasing do for you?
It provides you w ith new equipment now.
Leasing makes so m uch sense because its the only w ay for
any company, small or giant, to acquire profit-making
equipm ent w ithout capital strain.
You can lease almost any kind of m anufactured equipm ent.
H ere’s a small sam ple of the kinds of business equipm ent
we have leased:
Calculators, trucks, desks, typew riters, lathes, copym achines, welding tools, office furniture, electronics
gear, etc.
Find out how M orris Plan Leasing can help your company
get w hat it needs. Call for details on a tailored leasing
program.
MORRIS PLAN LEASING
200 American Building, Cedar Rapids
Phone 366-5331
Northwestern Banker, June, 1969
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
<
i
4■
f-
<
We hire him,
train him ,
pay him ...
to work for you
He’s a professional—a career man, and he makes
The North Central Companies’ plans profitable for
you. He’s an integral part of the completely pack
aged insurance programs that made our red shield
famous.
Today, it is more important than ever before that
lending institutions offer their customers broader
financial services and facilities to meet growing com
petition. This is where the comprehensive, up-tothe-minute North Central loan-connected packages
can do the job for you—effectively and efficiently.
Creditor Life and Disability, Mortgage Protec
tion, Major Borrower Insurance and a variety of
computer-designed Flexible Life policies add imme
diate and long-range profits to your lending opera
tion. Tailored to suit the specific needs of your
market, these plans are installed, administered, pro
moted and continually up-dated b y . . .“the leaders
in insurance through lending institutions.”
Just drop us a line and we’ll be happy to send
you the complete details.
The North Central Companies
P rotection all ways
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
North Central Life Insurance Co., St. Paul, Minnesota
Maine Fidelity Life Insurance Co., Portland, Maine
Royal Oak Life Insurance Co., Pittsburgh, Pennsylvania
Northwestern Banker, June, J969
The customers’ and the bank’s.
We look at it this way. If people have to get
out of their trucks and low-slung foreign cars
to do their drive-in banking, they might as well
walk into the bank.
That’s why we designed our visual remote
system differently. Pneu-Vista® makes drive-in
banking the snap it’s supposed to be.
To begin with, our presentation tray prac-
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
ticaily hands you the carrier. No more contor
tions to go through. No more groping for a
carrier you can’t even see.
And when your customers get their hands
on our carrier, they really have something to '
grab on to. It’s king-size. So big even a pass-v book doesn’t have to be bent to fit.
But why have a remote transaction system"
in the first place?
Simply because drive-in banking is meant
to be convenient. And it isn’t very convenient
^ when your customers wait in line for twenty
' minutes to make a two minute transaction.
With Pneu-Vista you’ re able to split long
lines of tra ffic during peak periods. One driver Tn teller can handle two customers at once. Two
t* tellers working a double window can serve three
t or four customers at the same time. (That’s our
Multiplex concept. It’s been working in our tele
vision banking systems for years.)
Whether you’d like to expand your drive-in
window facility, or are just starting to th in k
about drive-in banking, look into Pneu-Vista. It’s
one of the most economical investments your
bank can make. Write for f t
full information. Mosler,
Hamilton, Ohio 45012 . An American-Standard Company
►>•
We put drive-in banking
within everybody’s reach.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
26
S pectacu lar
A
D ra m a tizes S pectacu lar
d
V
H E N The F irs t N ational B ank of
B uilt on a scale befitting th e w o rld ’s
Chicago opened for business in g re a te st personal savings center, th e
its spectacular new sk y scrap er on
new F ir s t’s savings d ep artm en t occu
M onday, M ay 26, chances w ere slim
pies th e en tire first floor and w ill offer
th a t m an y Chicago readers, listeners,
a n u m b er of new am enities in fam ily
view ers or m overs m issed th e event.
b an k in g service.
B ecause a p a rt from th e com m anding
Two-page spreads or full-page ads in
presence of th e sw eeping 60-story tow all five of Chicago’s m ajor dailies, plus
e r now n e a rin g com pletion at D ear th e Chicago editions of L ife and Look,
born, M adison and Clark, one of the
followed th e opening of th e new F irst
broadest, m ost con cen trated ad v ertis ad v ertisin g schedule w ith a two-page
ing cam paigns in b an k h isto ry m arked
spread in Chicago M agazine May 15.
its opening.
C arrying “th e new F ir s t” sto ry
The F irs t N ational schedule called across th e co u n try and in th e business
for across-the-board coverage in new s com m unity w as sim ilar coverage in
papers, m agazines, radio, television
th e m idw est edition of th e W all Street
and outdoor ad vertising, beginning in Journal, th e E a st C entral editions of
mid-May and ru n n in g th ro u g h the
Tim e, N e w sw eek and U. S. N ew s and
May 26 opening into June.
W orld R eport, and n ational editions of
B uilt aro u n d a service them e — F o rtu n e and B usiness W eek. Two(“The new F irst: h elping you is w h at page spreads are app earin g in leading
w e’re all ab o u t” )—th e cam paign g ra b a n k jo u rn als across th e country.
phically illu stra te d th e fu n d am en tal
The m ajor radio-TV buildup began
change w hich has ta k e n place a t F irs t
th e w eek before th e opening, w ith 60Chicago and in th e b a n k in g business
and 30-second spots in evening tim e
a t large over th e p ast several years.
slots in Chicago’s four n etw o rk tele
T elevision spots show ed sw eeping vision stations, 60-second spots on AM
panoram ic helicopter shots of th e tow radio d u rin g th e m o rning and evening
e rin g new building, in tersp ersed w ith
ru sh hours, and some FM spots.
cu sto m er service scenes. T ogether, th e
More th a n 260 billboards carried the
sk y scrap er and service close-ups con basic p rin t ad in full color.
veyed th e feeling th a t all th a t financial
A t th e F irs t’s advertisin g division,
m ig h t is b u ilt on perso n al service, as
G. F re d e rick C harlton, vice president,
indeed it is. T he b an k serves m ore
said “com pletion w o rk on th e new
personal savings accounts in th is one
b uilding b arred an y film -m aking in
location th a n an y o th er financial in side, p re sen tin g a real creative chal
stitu tio n on earth.
lenge to th e people at Foote, Cone &
W
you can
rely on us
radisson
Growing Symbol
of Gracious
Hospitality
THE RADISSON
THE RADISSON DENVER
Denver, Colorado
Minneapolis, Minnesota
(formerly the Hyatt House)
THE CORNHUSKER
THE BLACKSTONE
Lincoln, Nebraska
Omaha, Nebraska
THE LASSEN MOTOR HOTEL
Wichita, Kansas
No rthwestern Banker, June, 1969
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Belding. So, for one of our TV commer- L.
cials, th e agency came up w ith a huge
b lu ep rin t of th e new banking floors— T
big enough for a p re tty F irs t Girl to u r
guide to w alk around on and ta lk ^
about th e new services and fa c ilitie s ^ ^
being installed. V iew ers th u s w ere
invited to im agine th e finished interi- <?
or, b u t only ’til M ay 26. T hen th ey
w ere invited to come in and see th e ♦
real th in g .”
N am e S c h o la r sh ip W in n ers
T hree m em bers of the N ational As
sociation of B ank-W om en Inc. received
scholarships to g rad u ate schools of
b anking as a h ig h lig h t of th e Tri-Regional C onference
of NABW held in
Minneapolis,
Minn., May 21-23.
T h e scholarship
w in n ers w ere ann o u n c e d at a
luncheon s e s s io n
h i g h l i g h t i n g ad
vanced education
al o p p o r t u n i t i e s
for w om en bank
M R S. H O L ST A D
officers o n t h e
closing day of th e Conference.
T he w in n ers of the first an n u al
NABW regional scholarships were:
M idw est Region—Mrs. M ary F. Holstad, a ssistan t cashier, C entral N ation
al Bank, Des Moines, Iowa.
X
M RS. H A R T
M IS S A N C IN E C
Lake Region — Mrs. Lona N. H art,
a ssistan t vice president, S ecurity Na
tional B ank of B attle Creek, Mich.
N orth C entral Region — Miss Marie
L. Ancinec, a ssistan t cashier, N orth
Side Bank, Racine, Wis.
Mrs. H olstad has had 20 years of
ban k in g experience w ith C entral Na
tional and has earned h er G raduate
Certificate from A.I.B., m ajoring in in
vestm ents.
Mrs. H art, a m em ber of Security
N ational’s staff for th e p ast 18 years,
is educational director of th e B attle
C reek C hapter of A.I.B. and form er
presid en t of th e chapter.
Miss A ncinec is in charge of the
bookkeeping d ep artm en t of N orth Side
Bank, w h ere she has been em ployed
for 17 years. She has actively p artici
pated in A.I.B. and B.A.I. activities
and sem inars in h er area.
*-
27
T
Who says there's a
difference in field
warehouse service?
We do.
f
IT’S EASY TO SEE WHY LEADING BANKS PREFER NEW YORK TERMINAL
FIELD WAREHOUSING AND INVENTORY ACCOUNTING SERVICES:
^ W arehouse controls and the issuance o f w arehouse receipts centered in re g io n a l offices stra te g i
c a lly lo cated th ro u g h o u t the U nited States.
•
M o n th ly Stock an d Value reports th a t give an exa ct accounting of d a y -to -d a y in ven to ry activity
a n d pe rm it a precise e v a lu a tio n o f c o lla te ra l, in clu d in g a g in g , at a ll times.
•
Inventories p h ysica lly checked 10 to 12 times a y e a r an d w ritte n reports m ade of fin d in g s.
® A unique record o f unquestioned Bailm ent.
v
IN SUPPLYING THIS EXCEPTIONAL SERVICE WE PROVIDE THE SECURITY NEEDED TO ALLOW YOU
- >
MORE FLEXIBILITY IN M A K IN G INVENTORY LOANS—YET NEW YORK TERMINAL SERVICE COSTS
,4
YOUR CUSTOMER N O MORE.
Specify " PROTECTION“ insist on
NYICO
NEW Y O R K TERM INAL W AREHO USE COMPANY
25 SOUTH WILLIAM STREET, NEW YORK, N.Y. 10004
O P E R A T I N G
O F F I C E S
I N
P R I N C I P A L
C I T I E S
No rthwestern Banker, June, 1969
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
28
Snap in.
Snap on.
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on reels . . . the instant magazine.
Take any standard Kodak plastic microfilm reel, or its equivalent. Snap it into
a new Recordak Thread-Easy magazine . . . and then onto the new Recordak
Motormatic reader. Your records are now ready to show. There’s no threading of
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Besides the advantages of high-speed image retrieval, the Thread-Easy maga
zine prevents accidental film unwinding, provides space for easy labeling and in
dexing, and eliminates the need for outer storage cartons.
The Thread-Easy magazine comes in both 16mm and 35mm sizes, and costs
about one-third as much as conventional magazines. This makes it economical to
convert all of your roll film to a permanent Thread-Easy magazine file . . . and
enjoy fully this most advanced concept in reel microfilm handling.
For full details on joining the reel revolution, contact Eastman Kodak Com
pany, Business Systems Markets Division, Dept. 0-6, Rochester, N.Y. 14650.
No rthw este rn Banker, June, 1969
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
The new Recordak
Motormatic reader—especially
designed to accommodate the
revolutionary Thread-Easy magazine.
CCPDf)§( Microfilm Systems by Kodak
29
■ "B asic Concepts in Bank M anagem ent"
was the subject of a thought-provoking
ta lk delivered before the 72nd annual con
vention of the Nebraska Bankers Associa
tion in Omaha last month by Allen P.
Stults, president of the Am erican N atio n
al Bank and Trust Company of Chicago,
Following his interesting presentation a t
the convention, M r. Stults was interview ed
by the NORTHWESTERN BANKER and this
a rtic le is a condensation of his platform
rem arks woven in w ith his in te rv ie w com
ments.
He made only b rie f references in his
form al presentation to the w ritte n creed
governing his bank's conduct of business,
and permission was granted by him la te r
to p rint it w ith this story when the e d ito r
suggested o ther banks might wish to ex
amine it as a possible guideline fo r taking
sim ilar action in th e ir own banks.
H E N w e discuss a subject such
as “B asic C oncepts in B ank
M anagem ent,” w e should de
fine our term s, and I w ould offer th is
definition of m anagem ent: “The ju
dicious use of a com pany’s resources
to obtain a m axim um profit.”
In som e in d u stries a com pany’s re
sources include large in v estm en ts in
tools, equipm ent, and o th er fixed as
sets. In v estm en ts of $50,000 to $150,000 p er em ploye, for exam ple, are
com m on am ong electric u tilities and
m ining, petroleum , and tobacco proc
essing com panies.
In ban k in g our resources are people
and th e challenge to b an k m anage
m en t is to em ploy and deploy th em to
m axim ize th e ir effectiveness.
W
Criteria for A n alysis
An in-depth analysis of 100 of th e
larg est c o m m e r c i a l b an k s in th e
U nited S tates w as p rep ared for th e
A ssociation of R eserve City B ankers
by M cK insey & Com pany, Inc. P e r
form ance of th e 100 w as analyzed for
th e period 1962-66 on th e basis of th re e
criteria:
1. A verage an n u al g ro w th ra te of
n e t o p eratin g earn in g s p er share.
Am ong th e 100 b an k s th e re w as
a 100 p er cen t differential betw een
th e h ig h est and lowest.
2. N et operatin g earn in g s as a p e r
centage of to tal assets at y e a r end.
The spread from high to low for
th is criterio n w as .49 ( V2 of 1
per cent) to 1.27 p er cent, a dif
feren tial of alm ost 200 p e r cent.
3. N et o p eratin g earn in g s as a p e r
centage of capital, su rp lu s, and
undivided profits. H ere, th e dif
feren tial w as 100 p er cent again,
ran g in g from 7.8 to 15.5 p er cent.
A fo u rth c rite rio n —th e ratio of cap
ita l funds to deposits—w as used as a
check on the o th er th re e criteria. The
spread again show ed a ran g e from 6
to 15 p er cent.
The finding of th e analysis w as th a t
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
R a sic Concepts h»
R a n k M a n agent ent
B y ALLEN P. STULTS
P r e s id e n t
A m e r ic a n N a tion al B an k
an d T r u s t C o m p a n y
C h icago , Illinois
those banks p erform ing w ell by every
c rite ria w ere th e ones w hose m anage
m ents are highly regarded and w ho
have studied and im plem ented new or
ganization practices and concepts.
T hese concepts group them selves in
th re e areas.
T he first of these is in th e area of
planning. A fter tak in g an in v en to ry
of stre n g th s and w eaknesses, objec
tives and ta rg e t dates are set. P eriodi
cally, an evaluation is m ade and the
re su lts com pared against th e planned
objectives.
The second concept involves organi
zation stru ctu res. Stated briefly, the
b an k is organized around th e business
es a n d /o r m ark ets w hich com prise its
n a tu ra l profit centers. T here follows
the com bination of adm in istratio n and
operating functions for each m ark et
group u n d er its m anager.
D e v e l o p m e n t of m anpow er re
sources is the th ird concept. This
includes the u p g rading of re cru itm en t
B A N K M A N A G EM EN T . . .
(T u rn to page 44, please)
C reed
( The follow ing creed was adopted by officers and directors of The
A m erican N ational B a n k and T ru st Com pany of Chicago as the guiding
p h ilosophy fo r the bank. P erm ission w as requested and granted fo r its
reproduction w ith th is article.)
Our basic justification for corporate existence is to earn m axim um profit
for our stockholders in such m an n er th a t th ey m ay take justifiable pride
in th e corporation and in th e q uality and level of our earnings. In ac
com plishing th is goal, we are governed by th e follow ing principles:
1. M aintenance of a strong, w ell-balanced financial condition.
2. D evelopm ent of, and p articipation in, every grow th m ark et for our
services.
3. M aintenance of th e hig h est level of in te g rity in all relationships w ith
custom ers, com petitors, suppliers, em ployees, and the public.
4. D edication to excellence and q u ality in serving our custom ers.
5. C om m itm ent to encourage and develop th e unique talen ts of the m any
individuals w ho co nstitute the corporation itself th ro u g h continuing
concern w ith viable m otivational and educational program s.
6. S up port of, and p articip atio n in, th e activities of the com m unity in
attack in g and solving th e problem s of contem porary life.
7. C onstruction and m aintenance of com fortable, attractiv e, and efficient
b an king q u arters, reflecting good taste and concern for th e convenience
of our custom ers.
8. A ctive p u rsu it of carefully conceived sh o rt and long range goals con
sisten t w ith th e foregoing.
Northwestern Banker, June, 1969
30
MEASURING
PRO FITA BILITY
'
I
1 l
1 I
'
1 I
'
i
•
I
'
l
*
o
o
f
accounts
receiva b le
H A T ra te s h o u l d a b an k
charge if it is about to en ter
accounts receivable financing?
Or, p u ttin g it a fte r th e fact, is a b an k
m aking a profit on its receivables op
eratio n s a fte r tak in g into considera
tion th e labor req u ired to service its
custom ers and allow ing for reasonable
allocations of o th er costs?
Obviously, th e re should be as m any
answ ers as th e re are b an k s engaged
in, or about to e n te r into, receivables
financing. F ro m b an k to bank, opera
tional m ethods and precise m oney
cases are as individual as th e finger
p rin ts of th e ir officers. A nd profitable
ra te s for any type of lending have to
be th e functio n of a com bination of
m oney costs and th e cost of servicing
custom ers.
W
Rate Scale
B ut beyond this, and possibly over
looked in cost accounting, is th e fact
th a t individual accounts req u ire v a ry
ing am ounts of servicing—som ething
th a t is p a rtic u la rly ch aracteristic of
receivables financing. F o r th a t re a
son, a tru e profit p ictu re w ill in ev it
ably and p ro p erly lead to a scale of
ra te s for secured lending, ra th e r th a n
a come-one-come-all charge.
The purpose of th is article is to p ro
vide a y ard stick for m easu rin g th e
profitablitiy of a b a n k ’s accounts re
ceivable financing. I w ill do so by
giving you a b rief in sig h t into how
w e at W alter E. H eller & Com pany
cost out our expenses in h an d lin g se
cured loans. Of course, our m easu re
m ents, w hich are based on 50 y ears in
Northwestern Banker, June, 1969
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
th is business, w ill n ot provide th e
final an sw er for anyone b u t ourselves.
H ow ever, if th e re is any question in
th e m ind of th e read er about th e prof
itab ility of his b a n k ’s receivables
financing, our form ula should provide
som e dow n-to-earth com putations to
s ta rt a m eaningful discussion.
P erh ap s it w ould be well, first, to
place th e problem in the general con
te x t of profitability and w h at w e finan
cial m en dem and of oth ers—our cli
en ts—b u t n ot alw ays of ourselves.
D ouble Standard
R ecently, a b an k er friend of m ine
m ade th e statem en t th a t th ere is often
a double stan d ard established betw een
financial people and th e ir clients w ith
resp ect to the relatio n sh ip s betw een
costs, pricing and profits. He de
clared th a t th e b an k er preaches to his
clien t th a t he m ust know his costs in
order to m axim ize his profits. In no
o th er w ay can th e client determ ine
w h e th e r th e prices he is charging his
custom ers are adequate to re tu rn a
desirable profit. All of us—b ank and
com m ercial finance com pany alike—
re q u ire this elem ental accounting of
our custom ers. The question in m y
frie n d ’s m ind was: Do we really re
qu ire th e sam e of ourselves? Do we,
indeed, know our own costs in serving
th a t sam e client?
Some of us, m y b an k er friend said,
rationalize th a t m ost of th e ta le n t in a
financial in stitu tio n is pro p erly classi
fied u n d e r fixed expenses. T herefore,
it is assum ed, th e ra te charged to a
client should be determ ined by his
financial stren g th and com petitive
pressures, ra th e r th a n by th e labor re
quired to service his account. W orse,
some of us don’t even know th e costs
of h an dling individual loans. Or,
w here these costs are know n, we do
n ot atte m p t to equate dep artm en tal
re tu rn on capital to any pre-estab
lished standards.
It is in te re stin g to note th a t the
personnel of our M id-W estern Ac
counts Receivable D ivision (handling
11 states) now consists of one person
for every $650,000 of average funds
employed. Of course, this average is
not a h ard and fast standard. Our
p resen t staff includes people in the ac
counts receivable and in v en to ry loan
o perating d ep artm ents, exam iners and
the selling and ad m in istrativ e group, t
It does n ot include non-departm ental
personnel necessary to carry in g on
our business, such as payroll and ac
counting people, nor, of course, our *
corporate executive staff.
^—
The n um ber of people in th is divi
sion m ay seem excessive to th e read --^ v
er, b u t if I m ay indulge in some cor
porate pride, I w ill say th a t w e w atch
our pennies closely and are satisfied
th a t we ru n a reasonably ta u t and
profitable ship.
T otal o perating expense, including
em ployee com pensation, acquisition
expense, re n t expense, legal expense,
collection expense, o ther general and
ad m in istrativ e expense, plus allocated
general and ad m in istrativ e expense
b u t excluding in te re st expense and
bad debt expense, is th e equivalent of
31
'3.1 per cent of average funds em
ployed.
A p artic u la r b an k er m ay tak e issue
w ith th ese specifics in com paring
th em to his operations. B ut th e po in t
I am m aking is one of principle: In
order to h andle accounts receivable
* business profitability, it is necessary
to know all of th e expenses chargeable
* to th a t o peration and to allocate th em
accordingly. To ru n a reasonably effi
cient o peration and service accounts
* > in a w ay th a t avoids u n u su a l losses, it
is likely th a t o p eratin g expenses,
a p a rt from bad debts and in te re st ex
pense, w ill ru n at least 3 p er cent of
a b a n k ’s receivables o utstandings.
T his assum es, of course, th a t th e size
of its receivable portfolio is large
> * enough to tak e th e b an k beyond th e
break-even point.
M oney Cost
y*
~my
">
r
v*
~7
T he n ex t v ariab le to consider is
m oney cost. E x cep t for capital employed, w e m u st b orrow all of th e
funds w e loan out and, therefo re, our
raw m oney is h ig h er th a n a b a n k ’s.
F o r a bank, how ever, it is the m an n er
in w hich deposits are allocated to th e
v arious lending d e p artm en ts th a t has
significance in d eterm in in g o perating
costs. L et m e d em o n strate th a t point
by an exam ple.
One of th e m ajor b an k s had occa
sion to review its costs w ith us. W e
w ere told th a t its accounts receivable
d ep artm e n t w as being charged for
m oney a t th e ra te of 6 p er cent per
annum , w hich w as th e p rim e ra te at
th e tim e. D em and deposits w ere al
located first to th e p rim a ry lending
activities of th e bank, and only th e
m ost expensive m oney w as “going”
into accounts receivable financing. As
a corollary, th e d ep artm en t w as cred
ited at th e 6 p er cent ra te for any
deposits m ain tain ed by its receivables
custom ers. T his 6 p er cent figure and
th e practices of th is p a rtic u la r b an k
m ay n o t coincide w ith those of oth er
banks, b u t it seem s clear th a t some
m oney cost figure m u st be pre-determ ined in order to establish th e profit
ability of vario u s loan centers.
A ssum ing for th e sake of discussion
th a t th e 6 p er cent m oney cost figure
w ould be applicable to an o th e r b an k
and com bining it w ith m y earlier fig
u re of 3 p er cent of average funds
em ployed to cover operatin g expense,
one arriv es at a te n ta tiv e ra te of 9
p er cent for a loan secured by ac
counts receivable. B u t th is leaves no
m argin to cover bad debt expense and
p e rm it a profit, except for th e credit
th a t m ay be given for cu sto m er b al
ances. Clearly, th is is an unprofitable
re tu rn by any stan d ard , p artic u la rly
in view of th e fact th a t accounts re
ceivable b o rro w ers tra d itio n a lly play
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th e float, w ith th e re su lt th a t th e ir
balances are m inim al.
C onversely, th ere is no in h e re n t rea
son w hy a b ank should not handle re
ceivables financing if:
Bad D ebt R eserve
1. It is w illin g to spend the m oney
for, and is able to acquire, the person
nel required to adequately police an
accoun ts receivable loan;
2. It k n ow s and properly allocates
all of its costs, in clu d in g a provision
for bad debts;
3. It is w illin g , as a m atter of real
istic policy, to charge w hat m ay ap
pear to be a high “bank” rate, in order
to cover its costs and still earn a sa t
isfactory profit.
T his b rings us to the m a tte r of es
tab lish in g a separate bad debt reserve
for th e receivables financing d ep art
m ent. One point is clear: A ny lend
er involved in accounts receivables
financing is going to have some m eas
u re of bad debt charge-offs. If none
occur, th e lender is not doing a proper
job. The th eo ry th a t a b an k engaged
in accounts receivable financing has
only tra d itio n ally excellent b an k cred
its and, therefore, need not w o rry
about losses can lead to eith er seri
ous disillusionm ent or to m issing a
su b sta n tial p o rtion of its potential
m ark et. In package loans, th a t is,
those w hich involve both accounts re
ceivable and inventory, bad debts ap
p ro x im atin g one-half of one per cent
of ou tstandings are norm ally tenable.
Since banks generally rep o rt th e ir
earn in g s per share before bad debts
and charge bad debts directly to th e ir
reserves, m any have not established
d ep artm en tal bad debt cost centers.
B ut regardless of w h a t a b a n k ’s ac
counting practices m ay be, bad debts
are an expense of doing business and
should be charged directly and clearly
to th e d ep artm en t creatin g them .
T hey should also be tak en into ac
count in establishing d ep artm en tal
perform ance, and it follows th a t an
allow ance for bad debts should be
b u ilt into th e ra te stru ctu re. At th is
point, then, adding th e one-half of one
p er cen t for bad debts to th e 9 per
cent p reviously established, we have
a. 9 V2 per cent ra te to break even on
an average account.
W e seem to have arriv ed at a m o
m en t of tru th , a t least for banks
w hose operations bear n ear relatio n
ships to our rate assum ptions. As a
fact of life, it m ight be stated: If the
policies of a b an k do not p erm it
ch arging a ra te h ig h er th a n 9 xk per
cent, th e n th ere is no economic ju s ti
fication in th a t b a n k ’s doing accounts
receivable financing.
B y STEPHEN C. DIAMOND
V ice P r e s id e n t
W a lte r E. H e lle r & C o m p a n y
C h icago , Illinois
Bank-W ide P olicy
I have discussed in this article only
one of m any w ays of allocating costs
in order to accom plish profitable op
erations. In general, how ever, it su re
ly can be said th a t a bank-w ide policy
on th e m a tte r of such allocations
should be established, and th a t as a
product of th is policy, lending officers
should be responsible for earn in g a
satisfactory profit on th e portfolio
th ey adm inister. T h a t’s th e w ay it is
at H eller.
B ut we go a step fu rth e r in refining
our cost controls, and w e recom m end
th a t banks do th e same. It is ju st as
im p o rtan t to m easure the profitability
of individual accounts as it is to m ain
tain a profit w atch on an en tire de
p artm en t. The profitability of a p o rt
folio cannot be any b e tte r th a n th e
profitability of th e parts. T herefore,
we m ain tain individual tim e records
on each of our accounts receivable cli
ents, recording n ot only exam ination
tim e, b u t direct, daily h an dling tim e
as well.
E v ery six m onths we p rep are a
sum m ary for each account, including
both d irect and allocated costs, th e
la tte r generally based on th e ir ratios
to to tal funds employed. If an ac
count is not re tu rn in g a reasonable
profit, w e b rin g th e facts to th e a tte n
tion of our client, and generally he
agrees to pay a h ig h er rate. H ow ever,
some w ill not, and w e suggest th a t
th ey arran g e for o ther financing. In
th e m ajo rity of cases, th ey can ob
ta in su b stitu te financing a t a low er
rate th a n we have quoted.
The very fact th a t “cheap er” financ
ing is available in so m any cases bears
out w h a t we have discussed. Those
lenders w ho m ake it available are
v ery often th e sam e ones who, in h an
dling th e ir loan portfolio, are volum e
ra th e r th a n profit m otivated. A nd by
re q u irin g detailed profit accounting
from th e ir clients, w hile short-circuit
ing th e ir own, th ey have created a
double stan d ard w ith respect to th e
relatio n sh ip s betw een costs, pricing
and profits. — End.
Northw estern Banker, June, 1969
32
li o ír a
0 'ounti§
F i a a litres Sin a ll U nsi nesses
« -4
B y KEITH E. ROBERTS
E x e c u tiv e Vice P r e s id e n t
B e a tric e N a tion al B a n k a n d T r u s t C o m p a n y
B e a tric e . N e b ra sk a
* A
■ This article is a condensation of an ad
dress given by the author recently in New
Orleans, La., before a convention of elec
trical motor dealers and allied service in
dustries. It tells how a county seat town
(13,000 pop.) bank with S22.000.000 in as
sets works with small businessmen to as
sist them in their regular financial needs
and their search for growth.
ANKS m u st be able to m eet th e
needs of sm all businesses eith er
to m ake th e loan or m ake a r
ran g em en ts for th e loan to be made.
T his brin g s m e to a specific area of
lending—th a t of th e te rm loan.
A term loan is often defined as being
a loan th a t has a final m a tu rity period
of longer th a n one year. H ow ever, I
do not feel th a t th is definition suffi
ciently describes a te rm loan.
Instead, I w ould define a te rm loan
as a loan th a t provides th e borro w er
w ith in term ed iate or long-term capital
funds th a t has a final m a tu rity period
of longer th a n one y e a r and less th a n
10 years. It m u st be depen d en t upon
th e b o rro w e r’s fu tu re earn in g s a n d /o r
cash flow for its u ltim ate liquidation,
and th a t it has been custom designed
to m eet th e b o rro w er’s u nique needs
for cred it and, at th e sam e tim e, sat
isfy th e lending b a n k ’s req u irem en ts
for earnings, liquidity and safety.
M any b an k ers tak e pride in claim
ing th a t th e ir b an k does n o t m ake
te rm loans. I perso n ally feel these
b an k ers really are m aking te rm loans
all th e tim e b u t do not adm it it. T here
w as a tim e w h en all loans w ere m ade
for six m onths or on dem and and
som etim es got renew ed so m any tim es
th e y w ere te rm loans w h e th e r m ean t
to be or not.
B
N eed for Term Loans
The need for a term loan is often
found in th e follow ing situations:
Northwestern Banker, June, 1969
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Federal Reserve Bank of St. Louis
1. Increased profitable business has
created an u rg e n t need for a new
p la n t and eq uipm ent capable of pro
ducing m ore volum e at a low er cost.
2. E xp ansion of a given business
m ay have provided a b o u ntiful am ount
of profit b u t an em b arrassm en t of
w o rk in g capital. G reatly increased
am ounts of accounts receivable and
in v en to ry m ay be p u ttin g severe
stra in s upon a com pany’s w o rk in g capp ital—a problem th a t m ay be allevi
ated in w hole, or in part, by a term
loan.
3. A p a rticu lar business plagued by
a shortage of adequate capital funds
from th e s ta rt m ay have been driven
to high cost borrow ing sources such
as facto ring of accounts receivables,
loans against accounts receivable, or
in v en to ry financing.
it dry; and we w ere about to see it
rem oved from our com m unity.
In a com m unity of our size we
could n ot afford to let th is in d u stry
leave. T his in d u stry provided employm en t for an average of 350 people d u r
ing the year.
The com pany authorized th e sale of
5,000 shares of 6 per cent p referred
stock w hich w ere sold w ith in the com
m unity; 50,000 shares of com m on stock
w ere sold at $10 per share and $1 m il
lion of Ida bonds w ere issued payable
over a period of 15 years. The com
p any is still struggling, b u t at least
we held it and w e hope in tim e it w ill
w ork out of its financial bind. Jam es
T alcott Com pany of M i n n e a p o l i s
w orks w ith us on th e accounts receiv
able financing.
H isto ry of a Term Loan
T here is no p articu lar m agic in re
ceivable financing as it is sim ply a
m ethod in th e norm al cycle of convert
ing cash to inventory, in v en to ry to re
ceivables, and receivables back to cash.
This, of course, lessens th e need for
w orking capital. In this type of finan
cing, th e b a n k e r and b o rro w er w ork
v ery closely at all tim es.
U sually th e b ank agrees to extend
60 p er cent and 80 per cent of all as
signed receivables w hich are not de
linquent. R egular visits are m ade by
th e b an k to m ake su re assignm ents
and collections are being handled
properly, to w atch th e level of re
tu rn s, to see th a t earnings are being
generated, and to m ake sure trad e bills
are being paid w ith in term s. T his is
an expensive m ethod of borrow ing but
is often considered less onerous th an
sh arin g ow nership w ith others in or
der to obtain necessary capital.
Up to th is tim e, I have talked about
r ~~
v
Receivable Financing
A bout five y ears ago, we had a case
w hich fits th e exam ple w hich I ju st
m entioned. An in d u stry in our city
had changed hands about th ree tim es
and th e out-of-town ow ners had m ilked
REG U LA R v isits should be made by the
b a n k e r to th e borrow er in connection w ith
accounts receivable financing.
_
33
* 4b an k er and b o rro w er relatio n sh ip w ith
th e loan, b u t now I w ould like to dis
cuss w ith you th e financing devices
„ w hich are available to us to solve th e
financing needs of you, our customV. ers, th ro u g h th e use of g o vernm ent
agencies.
►*
S.B.A. Loans
Sm all B usiness A d m in istratio n loans
have helped th o u san d s of sm all firm s
get started , expand, grow and prosper.
B usinessm en like you rep resen ted
here today m ay do w ell to check w ith
’y o u r b a n k e r a t hom e in re g a rd to a
S.B.A. loan. T h ere is no stigm a a t
tached to such a loan.
Some of th e ad v antages of a S.B.A.
loan m ay be described in th e follow ing
way:
T erm s on S.B.A. business loans m ay
be for as long as 10 years.
In te re s t ra te s on S.B.A. p o rtio n of
im m ediate p articip atio n s as w ell as di
rect loans m ay n o t exceed 5% per
cent. T he b an k sets th e ra te on g u a r
anteed loans and its p o rtio n of im m e
diate p articip atio n loans. In oth er
w ords, th e b an k p articip ates in a loan
on a 50-50 basis, th a t is—half of the
loan w ould be at 5% p er cent and th e
o th er one-half a t th e re g u la r rate. A t
th is tim e, th is alone is a definite ad
vantage.
The secu rity for th e loan m ay be of
one or m ore of these:
3. M ortgage on land, buildings and
equipm ent.
2. A ch attel m ortgage or secu rity
agreem en t on perso n al property.
3. G uarantees, p e r s o n a l endorse
m ents, or assig n m en t of c u rre n t re
ceivables.
Now if you believe th a t you qualify
and w ish to apply for an S.B.A. loan
th ro u g h y o u r local bank, follow th e
step-by-step p rocedure y o u r b an k er
w ill outline.
T here are o th er S.B.A. loan plans
such as a lease g u aran tee pro g ram or
a local developm ent p ro g ram w hich is
designed to provide stre n g th to lag
ging economies.
la k e a F ootb all Team
M aybe I can b est sum up w h a t I
have been try in g to say by com paring
both of us to football. T here is a goal
line th a t determ in es w h e th e r you w in
or lose. In b u siness th a t goal is to
increase y o u r sales profitability. The
football and how it is h andled is th e
key to th e w hole game. T he foootball
in y o u r b u siness is y o u r capital, y o u r
money.
It tak es 11 m en w ith in dividual spe
cific ta le n ts all w o rk in g closely to
g eth er to have a good team . As b a n k
er, I like to th in k th a t I am a key
m em ber of y o u r team giving freely of
m y abilities along w ith all of y o u r
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i'h iv M ifo 's K it jt f v d l o t i n f f O K 's
••ttitfht Hunk on th v
UMOR has b e e n p r o v e n
again as an effective public
relations arm of banking. E v i
dence of this w as a six-week b a t
tle th a t involved th e Chicago
Tribune, W FM T FM Radio Sta
tion, WMAQ-NBC Radio and M er
chandise N ational B ank of Chica
go w hich has finally been re
solved. In a v irtu a l water-slide,
H
George B. E v e r itt (le ft), chmn. of
the board of M erchandise N atl. Bk.
of Chicago, and H arry F. Tubergen,
Jr., pres., are shown stuffing “ The
G reat Chicago B iver C ontroversy”
ballot box in th e b a n k ’s lobby.
th e public voted 80 p er cen t in fa
vor of M erchandise N ational’s
position in The G reat Chicago
R iver C ontroversy.
The controversy began w hen
M erchandise N ational B ank in
th e M erchandise M art on the
n o rth side of th e Chicago R iver
p ain ted a w all sign saying “B ank
at th e rig h t bank on th e left
b an k .” Chicago T ribune C olum n
ist W ill L eonard took exception.
He declared in his colum n th at,
since th e S an itary D istrict had
rev ersed th e n a tu ra l flow of th e
Chicago R iver at the tu rn of the
c e n t u r y , M erchandise N ational
w as actually on th e rig h t bank.
T h at started th e w ater fight.
o th er k ey people and d ep artm en t
heads.
Som etim es th e q u arterb ack calls a
ground play, som etim es a pass, and
w h e th e r th e play is a gainer or not
depends en tirely on w h at he does w ith
th e ball after h e gets it. YOU are the
q u a rte rb ack of y o u r team .
Not m any centers get any glory or
fam e, b u t I guess th a t’s w ho we w an t
to be on yo u r team ; the fellow w ho
Hunk"
M erchandise N ational B ank’s
ad v ertisin g agency retaliated in
a le tte r p rin ted in Mr. L eonard’s
colum n sta tin g “W hen it comes
to declaring for th e A lm ighty or
the S anitary D istrict, we side
w ith the form er.” Mr. L eonard
w as “flooded” w ith letters pro
and con supported by quotes
from such au th o ritativ e sources
as th e Bible and th e C harts of
th e Illinois W aterw ays.
M erchandise N ational declared
th a t The G reat Chicago R iver
C ontroversy should be settled
th e A m erican w ay . . . by ballot.
In an ad v ertisem en t on th e sam e
page as Mr. L eonard’s T ribune
colum n, th e b ank ra n an official
voting ballot. A v o ting booth
w as also set up in th e b an k ’s
lobby. Em ployees of th e ban k
w ere encouraged to vote “yes.”
T hen W FM T Radio S tation on
the opposite side of th e riv er
plunged into th e act by asking
its listen ers to “take a p rag m at
ic, realistic stand and vote “no.”
T aking no chances M erchan
dise N ational’s ad v ertisin g agen
cy, M itchel S u ttn e r M cPhilliam y,
Inc., placed an ad in th e Chicago
Tribune u rg in g th e public to
vote “yes.” T hey w ere joined by
WMAQ-NBC Radio, located in
th e M erchandise M art, w hich
called for its listen ers to vote
“yes.”
A sked to take a stan d on th is
im p o rtan t issue, Chicago M ayor
D aley’s office w rote, “W hen the
leprechauns re tu rn to p ain t th e
Chicago R iver green n ex t year,
w e’ll ask th em .”
In p u blishing th e resu lts of
th e voting in a colum n headed
“L eft B ank on th e R ight B ank,”
W ill L eonard declared, “N ever
th is side of Moscow has balloting
been rigged m ore one-sidedly
th a n it w as in The G reat Chicago
R iver C ontroversy.”—End.
huddles w ith you to know th e signal
y o u ’re calling, w ho hands you th e
m oney you need to get yo u r play go
ing tow ard y o u r goal, and th e n w ho
does ev ery th in g possible to pro tect
you.
W e w an t to w o rk h ard alongside you
and our expectations are p erhaps unCOUNTY SE A T B A N K . . .
(T u rn to page 91, please)
Northwestern Banker, June, 1969
34
w*>—
■h
H o w W e H it •SUO M ill hut
<
j* A7
-A
A Case H isto ry o f a N ew B an k 's G row th B ased
o n P r o v id in g W hat th e C u stom er W ants
C
E N T E R BANK is located in a five-level shopping
cen ter on 42nd and C enter S treets in th e first shop
ping cen ter b u ilt in Omaha. The C enter w as
opened in Septem ber of 1955, com plete w ith grocery,
drug, variety , shoe and d ep artm en t stores, dress shops,
pet shop, doctor and d en tist offices, tw o bars, a re s ta u ra n t
and bow ling alley. T here is under-cover p a rk in g for
1,400 cars and easy access p ark in g on th re e levels.
In Ju ly of 1963 th e second level b an k area w as e x -^
panded and th e b ank now occupies 12,146 square feet of M
floor space. A drive-in facility w ith tw o w indow s w as „ \
constructed in Septem ber of 1966. C enter B ank is the
largest state b an k in N ebraska and our m ortgage loan
d ep artm en t ran k s 49th in th e U. S. am ong com m ercial
banks. (See C hart No. 1.)
V* X'
B ank Staff
Rapid G rowth
The c h a rte r for C enter B ank w as g ran ted on N ovem ber
26, 1955, and constru ctio n sta rte d in J a n u a ry of 1956.
The bank opened its doors for business on A pril 2, 1956,
ready or not, on the second level. It occupied 3,500
square feet of floor space and had a staff of four officers
and five em ployees. T here w ere no carpets, no desks
and lots of unfinished projects, b u t th e w o rk continued
and the g ran d opening w as held on A pril 22.
H ours w ere from 9:30 to 2:00 p.m. M onday th ro u g h F ri
day, and th e b an k w as reopened from 3:30 to 6:00 p.m.
on M onday and F rid a y only.
Two y ears later, th e officers discovered th a t 2 m illion
shoppers p er y e a r w ere passing th e b an k doors du rin g
th e closed hours. So C enter B ank becam e th e first b ank
in Omaha to have longer ho u rs and rem ained open u n til
8:00 p.m. w eekday evenings and opened from 9:30 a.m.
u n til noon on S aturdays.
L onger hou rs increased th e n u m b er of custom ers and
deposits beyond expectations and n ecessitated larger
q u arters. The bookkeeping, in stallm en t and m ortgage
loan dep artm en ts w ere m oved to new q u a rte rs on th e
th ird level, b u t soon th e y w ere too crowded. In stallm en t
loans w ere m oved back to th e second level and bookkeep
ing m oved to th e fo u rth level.
CHART NO. 1
G rowth of D eposits and A ccounts
Date
Total
D eposits
N um ber of
A ccou n ts1
2,391
$ 2,860,000
D ecem ber 31, 1956
4,393
4,471,900
Decem ber 31, 1957
7,8782
7,069,500
D ecem ber 31, 1958
12,478
9,515,935
D ecem ber 31, 1959
11,084,958
15,160
D ecem ber 31, 1960
12,362,021
17,091
D ecem ber 31, 1961
18,771
13,394,618
D ecem ber 31, 1962
13,828,442
20,018
D ecem ber 31, 1963
21,134
D ecem ber 31, 1964
17,401,450
22,898
17,505,374
D ecem ber 31, 1965
25,760
18,588,393
D ecem ber 31, 1966
25,113,472
28,477
Decem ber 31, 1967
31,906
29,048,438
Decem ber 31, 1968
30,300,650
A pril 5, 1969
xE xcluding Safe Deposit Boxes and C hristm as Clubs.
^Longer ho u rs started.
Northwestern
Banker, June, 1969
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
In A pril of 1965, the b an k w as purchased by th e N o rth f f
w est B ancorporation and the founding p resid en t becam e
ill th a t year. He died in 1966 and Ray E. Stanley, th e
only rem aining m em ber of the original staff, becam e p re s
ident.
The p resen t staff is com prised of 11 officers, 56 fu ll
tim e and 22 part-tim e em ployees. T w enty-six are on the
day crew, w o rking from 8:30 a.m. u n til 4:00 or 5:00 p.m.,
*r
depending on th e ir duties. All of th e day tellers are
women. At 3:30 p.m. th ey to tal out th e ir teller m achines, y go to th e back room to balance and th e evening and Sat
u rd ay tellers step into th e w indow s. These are college r
stu d en ts and of th e 11 p resen t officers, five began th e ir
careers as evening tellers. W e also have tw o part-tim e
policemen.
**. A
Now the bank is rapidly outgrow ing th e p resen t q u ar
ters. P lans are on th e draw ing board for a new drive-in,
w alk-in facility tw o blocks w est of th e Center. This
facility also w ill contain safe deposit boxes, since we have
a long w aitin g list of custom ers w ho w ish to re n t boxes,
and we do not have enough boxes to ren t. All of our
dep artm en ts are on autom ation, processed by our corre -J»
spondent ban k dow ntow n.
How do we give th e custom ers w h at th ey w ant?
- Í
W IT H T R A IN E D A N D F R IE N D L Y PE R SO N N E L .
i K N O W L ED G EA B LE O FFIC ER S.
LONGER HOURS.
Ma
C O N V EN IEN T PA RK IN G .
F U L L SER V IC E B A N K IN G F A C IL IT IE S .
V
IM A G IN A T IV E A D V E R T ISIN G A N D PROMOTIONS.
*1
CHART NO. 2
Growth of Senior Citizen C hecking A ccounts
Date*
1966
October
D ecem ber 1966
Ju n e
1967
D ecem ber 1967
1968
Ju n e
D ecem ber 1968
F e b ru a ry 1969
*End of M onth
A pril 10, 1969
Dollar
B alance
A ctive
A ccounts
A verage
Balance
215
515
898
1,143
1,374
1,495
1,571
$
82,313,91
221,130.96
414,123.37
561,650.90
746,482.11
911,087.57
974,282.52
$382.85
429.38
461.16
491.38
534.29
609.42
620.16
1,643
$1,081,453.00
$658.00
35
in
IS
only th e free checking account. (C hart No. 1, O ther Serv
ices.) These custom ers have over $325,000 in savings
accounts and over $1 m illion in CD’s. T here are u n
doubtedly m any w ho have accounts jointly, w ith p er
sons of o th er nam es and we w ere unable to take the tim e
to locate these, as we do n ot have a cen tral file system .
R esu lts of S urvey
D e liv e r e d b y
M RS. D O R IS J. C A P P S
Bank Hostess
Center Bank
Om aha, Nebraska
at the Regional
Bank P R M A Clinic
—r
Senior C itizen A ccounts
W h at do people like best? S om eth in g free. And we
have th a t u nique service in Om aha w ith free checking
accounts to an y Senior C titizen, age 65 or older. (C hart
No. 2, G row th of Senior C itizen A ccounts.) T his prom o
tion, th e idea of Ron N ollette, w ho is in charge of b u si
ness developm ent, began in October of 1966 w ith an ad
v e rtisin g budget of about $3,000 and has grow n, as of
A pril 10, 1969, to 1,643 accounts w ith checking balances
totalin g $1,081,453, w ith an average of $658 p er account.
T hey w ere set up in a specially n u m b ered control. These
Senior C itizens are given 50 free personalized checks
w hen th e y open th e account and th e re are no charges for
►s.* subseq u en t check orders. C enter B ank provides a m o n th
ly statem en t, free.
W e ju s t com pleted a su rv ey of th ese custom ers and
C hart No. 3 explains w hich of our ad v ertisin g m edia
-r> prom pted th em to open th e account. The response to
th is su rv ey w as trem endous. On F rid ay , M arch 21, 1,571
su rveys w ere m ailed to th e Senior C itizen custom ers and
over 250 replies w ere received back in th e b an k th e nex t
M onday m orning. T hey w ere not m ailed w ith th e reg u
lar statem en ts, as we felt m any statem en ts are not
opened prom ptly.
VV
Of th e 1,131 an sw erin g th e su rv ey by A pril 10, 558 have
All th e em ployees w ere rated courteous, except one
w om an teller. A few custom ers w ould like even longer
hours. Our telephone m an n ers w ere rated prom pt and
courteous w ith o u t exception. T here w ere some com
plaints. Nine com plained of long lines at teller w indow s
at bu sy hours, one found our ban k by m ail form tedious,
several w rote th a t we have inadequate safe deposit
booths (and we do), five w ould like th e old savings pass
books, one didn’t like th e o v erdraft charge, as she w as
out of th e city and d idn’t know she w as short!
E veryone could recom m end our b ank to friends. Sev
eral listed nam es of persons th ey had referred to us or
th e y w rote how m any of th e ir friends had opened ac
counts.
The additional service requests w ere few, b u t in te re st
ing. Two w anted tru s t account inform ation, one w anted
us to change the nam e of th e b ank for prestige, an
o th er w anted inform ation about the kind of w ill needed
to avoid probate expense. Several requested in v estm en t
and tax p rep aratio n help and advice.
A bout 50 p er cent took the tim e and effort to w rite a
com m ent—and m ost of them said th ey really appreciated
th e free account, especially because of o th er risin g costs,
safety of not having th e cash at home, convenience of
p aying bills, and friendliness. One adm ired C enter B ank
because OTHER banks have such silly radio and TV
commercials!
S u ccessfu l Program
Mr. N ollette began th is prom otion and it has created
u n lim ited good w ill and has tw ice been m entioned in th e
Public Pulse of th e Omaha W orld-Herald. W e perform
o ther services for th e Senior Citizens. E v ery F rid ay
afternoon, th ey bowl in a Senior Citizens league on the
fifth level of th e C enter at a reduced rate. On th e first
F rid a y of each m onth, I hostess a coffee for th e bow lers
and onlookers at th e bow ling alley. W e appear before
Senior Citizens groups w h enever w e are invited and co
operate w ith th e Om aha Senior Citizen Council, m ade up
of rep resen tativ es of various retire d groups in th e city.
I m ake hospital and hom e calls w henever needed and
have been in stru m e n ta l in obtaining several tru s t ac
counts. Sons and dau g h ters often handle th e ir aged
HOW W E H IT $30 M ILLION . . .
> *
>>
- *
- V,
CHART NO. 3
S u rvey Q uestion No. 2
(T u rn to page 111, please)
H ow did you h e a r about our F ree Senior
Citizen C hecking Account?
P rev io u s custom ers ........................ 17%
F rie n d or re la tiv e .................................22%
R adio .................................................... 09%
T elevision ............................................ 06%
N ew spaper .......................................... 06%
B illboard .............................................. 07%
Lobby sign .......................................... 10%
C o m b in a tio n ........................................ 12%
L ocation .............................................. 01%
P erso n n el in b a n k .............................. 06%
Solicitation of a c c o u n t...................... 01%
M iscellaneous .................................... 01%
N ot m arked ........................................ 02%
CHART NO. 4
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
A ccounts of S en ior C itizens of
C enter Bank
(Survey replies 1,131)
H ave only the free a c co u n t..............
H ave o th er acco u n ts............................
H ave savings acco u n ts......................
(Balances over $325,000)
H ave certificates of d e p o sits............
(Balances over $1 m illion)
H ave safe deposit b o x es....................
H ave loans ............................................
H ave C hristm as C lu b s......................
H ave other checking acco u n ts........
558
573
344
215
193
41
43
28
Northwestern Banker, June, 1969
36
•y*
im iti
fíe L e mimarli Year
a
|
> <\
A -f
4-
'A 'K ■
A{
D
*
O T H E S E years strik e a fam iliar
note?
1791
A re c e n t a d d re ss
1863
B y W ILLIS W . A LEX A N D ER , JR.
1913
1933
T hey should, because th ey w ere
lan d m a rk y ears of F ed eral b anking
legislation. The estab lish m en t of th e
first B ank of th e U nited States; pas
sage of th e N ational B anking Act and
th e in au g u ratio n of our dual system ;
th e creation of a cen tral b an k in g sys
tem ; and th e provision for deposit in
su ran ce and o th er b an k in g refo rm s—
all have exerted, and continue to ex ert
a m arked influence on th e m an n er in
w hich we conduct our affairs as b a n k
ers.
I t is possible th at, in th e y ears to
come, h isto rian s w ill add 1969 to th is
list. F o r today w e are all engaged in
a m ajo r debate over th e n a tu re of the
b an k in g business. It is incum bent
upon us, therefo re, to tak e stock of
th e goals w e seek to achieve and the
procedures we w ill have to follow.
C ongress Is F air
F irst, I should m ention th a t those
w ho fear rep ressiv e legislation u n d e r
estim ate, I believe, th e w isdom and
fairm ind ed n ess of th e Congress. The
m ajo rity of th e m em bers of C ongress
u n d ersta n d th e pivotal role of the com
m ercial b an k as th e chief financial in
term ed ia ry of our economic system .
T hey w a n t b an k s to be responsible
custodians of th e people’s m oney—and
so do we. T hey w a n t b anks to m ake
loans th a t w ill help individuals and
com m unities p ro sp er—and so do we.
T hey w a n t b an k s to catch up w ith th e
tim es, to respond to new b roadening
dem ands for custom er services arisin g
from th e technological rev o lu tio n in
com m erce and in d u stry —and so do
we.
H ow ever, w e m u st also be aw are of
th e tend en cy of som e legislators to as
sum e th e w o rst w hen th e y act about
Northwestern Banker, June, 1969
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
.Vr ’
"• T -
P r e s id e n t
y~l
A m e ric a n B a n k e r s A ssoc iation
A__
N ew Y o r k , N. Y.
H
prescrib in g actions and services in
w hich b anks m ay engage. In alm ost
ev ery instance since th e 1930’s, re stric
tive legislation has been aim ed at the
p rev en tio n of abuses w hich had not
y et happened. The ju d g m en t often
appeared to be ren d ered not on th e
basis of w h a t we had done b u t on the
basis of w h a t th e m ost suspicious and
least tru s tin g law m aker th o u g h t we
b an k ers m ight do in a fit of irresp o n
sibility.
P resu m p tive A ttitude
T his attitu d e presum es a b anker
w ho is insensible to th e public tru s t
he bears. It presum es a b anker w ho
is out to destroy his com petition, an
tagonize his custom ers and im pair the
g ro w th and w ell-being of his com m u
nity. T here m ay be, som ew here, such
a b an k er b u t I h av en ’t m et him , and
the law s and regulations already in
force w ould perm it him a v ery brief
professional life span.
The A m erican people, today, know
better. One of th e significant deriva
tives of our in d u stry ’s recent em pha
sis on retail services is an increased
public aw areness of w h at banks are
and do. Our consum er services and
our involvem ent in a wide range of
com m unity-betterm ent activities, p a r
tic u la rly in the sm aller com m unities,
have m ade it dem onstrably clear th a t
th e public in te re st and th e in terest of
b an k s are th e same. It has indeed
m ade ap p ro p riate th e title, “Com m u
n ity B an ker.”
I am not suggesting th a t ban k in g is
free to w ork its w ill in term s of public
policy decisions affecting our indus
try . Such an ev en tu ality is n eith er
desirable nor possible in a free m ark et
economy. I do suggest, how ever, th a t
we are in a position to advance our
ideas and proposals in th e policy-m ak
ing forum w ith o u t hav in g constantly
to prove our m otives and our en title
m ent to be heard. In th e presen t en
vironm ent, w e have no call to ap
proach l e g i s l a t i v e and reg u lato ry
bodies in a defensive stance.
I,
- A
In d u stry ’s P osture
W h at is our p osture as an industry, <on the c u rre n t legislative scene?
V/
F irst, w e are concerned — we m ust
be concerned — p rim arily about longrange goals. W h at k ind of b anking
system w ill be b est for th e c o u n try 10
or 20 y ears from now? W h at new
services w ill custom ers w an t and
need? How are th e services to be ad
m inistered and paid for? W hat kinds
of regulation w ill be req u ired to as
sure th e safety of depositors’ funds?
W e stand for flexible adm in istratio n
of th e law. T he public in te re st re
quires th a t ban k in g be both responsi
ble and responsive to change. I t can
be n eith er, in term s of custom er and
public service; its course is pre-set on
a narrow -gauge track.
It w as th is long-range sighting th a t
LA NDM ARK Y EA R . . .
(T u rn to page 42, please)
37
A farm with the
Continental touch
The obvious touch of success . . . the comforting
knowledge that everything man can do was done right.
And while the Continental Bank agri-team can’t claim
the credit, it did help to provide the credit. . .
. . . the right kind of credit at the right time and
right place . . . plus the kind of helpful sendee that can
come only from many years of practical farming and farm
banking know-how.
You just might call it the Continental touch, an
invisible ingredient in the recipe for progressive banking
and profitable farming.
It’s what you’d expect from
the biggest bank in Chicago.
Continental Bank
In farming today, it takes green to make green...
lots and lots of it, more and more every year. So
when farmer-businessmen in your community turn
to you for help, it’s good to know that yo u can turn
to the agri-team at Continental.
Continental Illinois National Bank and Trust Company of Chicago • 231 South La Salle Street, Chicago, Illinois 60690 • Member Federal Deposit Insurance
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Corporation
Northwestern Hanker, June, 1969
38
Mx
M o n e y
$
M oney
M oney
$
■vr
$
ome tim e ago a G allup poll
survey asked th e A m erican Public
this question .. . “W h at is y o u r big
gest w o rry these days?” The one a n
sw er given m ore often th a n any oth er
w as MONEY. F o r th e average A m eri
can, th is m eans try in g to keep as
m uch m oney com ing in to th e fam ily
pocketbook as goes out . . . or sim ply
paying th e bills.
A fter financial w orries, th e poll
found th a t A m ericans th e n w o rry
about raisin g th e ir child ren and, final
ly, how to keep in good health.
4 v
illsfefc.
B y R O B E R T J. FLORIN
D ir e c to r o f T ra in in g
N o rth C en tral L ife In su ran c e C o m p a n y
St. P aul. M inn.
M oney—Major W orry
W hy, in th e ric h e st co u n try in the
w orld w ith em ployem ent at an alltim e high, should our concern over
having enough m oney still be our
g reatest w orry? E x p e rts in th e field
of personal financial p lan n in g are
quick to poin t out th a t our w ishes
usually exceed our needs. And, w e all
know from p ersonal experience, th a t
our pay raises are quickly absorbed in
our increased stan d ard of living. Yes,
our needs are m any.
Look at these shocking facts re
ported by th e U. S. B ureau of Labor
Statistics. The chances are tw o to one
th a t you w ill be alive a t age 65, b u t 12
to one th a t you w ill not be financially
indepen d en t if you reach th a t age. On
a stu d y of 100 A m ericans at age 25 and
on equal financial footing, figures
show th a t at age 65:
1 — w ill have $10,000 or m ore
4 — w ill have $2,000-$4,000
54 — w ill be dependent on relatives,
frien d s or charity
5 — w ith no estates, w ill be w o r k
ing
36 — w ill be dead
H ere, th e n in th e ric h e st co u n try
of all . . . nine out of 10 are eith er
Northwestern Banker, June, 7969
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
i rdead or “dead bro k e” w hen th ey reach
65.
In su ran ce m en can change these sta
tistics! The only w ay I know to g u ar
antee dollars for fu tu re delivery is to
SAVE them . H ow ever, few people
know th e definition of tru e savings.
to produce incom e for them selves. In
other w ords, eith er death occurs or
th ey find them selves no longer able or
w illing to produce an income. It is
th e n th a t th e w ealth or capital w hich
th ey have already produced m u st be
converted to incom e for im m ediate
use.
T w o In com e Sources
In ord er to define tru e savings, we
m u st d eterm in e th e sources of in
come. I t is a basic economic fact th a t
th e re are only tw o sources of income
. . . m en a t w ork and dollars at w ork.
Most people sim ply w ork to live,
because th ey don’t have enough dol
lars w o rk ing for th em to provide an
adequate incom e. D uring th e ir w o rk
ing years, th e y w ill accum ulate a cer
ta in am o unt of capital or w ealth such
as eq u ity in a hom e, savings accounts,
social secu rity accounts, life insurance
cash values, bonds, stocks and real
estate.
T he fact rem ains th a t th e tim e w ill
come w h en th e y are no longer able
/ -
<
S avings Defined
It w ould appear th a t th e tru e defi
nition of savings is m oney w hich is
saved th a t w ill ultim ately produce S M .
income. All o th er types of so-called
savings are m erely deferred spend
ing program s.
The only th in g in th e w orld th a t
w ill g u aran tee principal, in te re st and
life-time incom e a t this tim e is a p er
m an en t cash value policy or annuity.
How m uch does a term policy pay at
retirem en t? R em em ber tw o out of
th ree m ake it to 65, b u t only one out
of 13 have an y m oney w hen th ey get
there. L et’s do our share to change
these ratios. — End.
39
— S'
BANK CHECKS
a n d handsome, convenient Loan Payment Books
so nice they make installm ent paying a plea sure.
S BANK CHECKS
V 4-
a n d the g re a te st v a rie ty o f Internal Bank Forms
ever crea ted a n d designed by bra in y bankers.
—>
MAKES BANK CHECKS
a n d the most com plicated, co lo rfu l a n d useable
Process C o n tro l Documents ever digested by a computer.
V
V
l->
•> y
MAKES BANK CHECKS
and the easiest to use an d most certain to sort
Deposit Tickets ever pushed th ro u g h a te lle r ’s w indow .
Call on us . . .
DELUXE
CHECK P R IN T E R S
INC.
STR A TE G IC A L LY LO CATED P L A N T S FROM COAST TO COAST
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Northwestern Banker, June, 1969
40
iV e ir
C areer Suits
Hy 1st of St. Louis em p lo yees
i r s t n a t i o n a l b a n k in st.
Louis recen tly introduced th e new
“F irs t L ook” in custom er areas of the
bank, and also by an announcem ent
cam paign in m etro p o litan area new s
m edia.
On h and for th e u n v eilin g of th e
b a n k ’s new career su its now being
w orn by 65 fem ale and 25 m ale public
contact em ployees on th e m ain b an k
ing floor and in th e safe deposit de
p a rtm e n t w ere C hairm an of B oard
Jam es P. H ickok, P re sid e n t E d w in S.
Jones and oth er officers of th e b ank
involved in custom er, p ersonnel and
public relatio n s activities.
The n ew career apparel w as p ro
m oted b y th e b an k on radio and telev i
sion and in th e new spapers. The
new spap er ad v ertisem en t stated th a t
F irs t N atio n al’s decision to “dress u p ”
contact em ployees w as m otivated in
p a rt by a recen t su rv ey indicating
th a t 99 p er cent of th e custom ers re
sponding felt em ployees w ere friendly
and knew th e ir duties. The g eneral
tone of rem ark s on th e questio n n aire
form w as sum m ed up by one custom
er w ho w rote, “Your em ployees are,
w ith o u t a doubt, the k in d est and m ost
helpful I have m et an y w h ere.”
The m ix-m atch career app arel w as
custom -tailored by Scot F ash io n A p
parel, Inc., St. Louis, w hich specializes
in high-quality clothing for financial
institutio n s.
The F irs t N atio n al’s w ardrobe for
w om en includes th e follow ing basic
com ponents: a g ray princess style
dress; a plain g ray skirt; a g ray and
black checked sk irt, a g ray and black
w eskit; a g ray open fro n t, hip length
jack et w ith g ray and black checked
trim ; a p lain g ray open front, hip
len g th jack et w ith b raid trim ; a sky
blue blouse w ith th ree-q u arter length
sleeves and an ascot tie; a sky blue
blouse w ith t h r e e - q u a r t e r length
sleeves and a m an d arin collar; a sky
blue sm oke ring, and a handm ade ste r
ling silver on black F irs t N ational
emblem.
The new career outfits for th e m en
consist of a handm ade F irs t N ational
emblem; a n av y blue sh a rk sk in blaz
er; gray slacks; n avy ties im p rin ted
w ith F irs t N ational sym bols, an d blue
oxford cloth sh irts w ith b u tto n down
collars.
Selection of th e career app arel item s
w as m ade by p opular vote of those
em ployees involved in th e program
follow ing a series of m eetings held
w ith the designers and m a n u fa c tu rers
by an em ployees’ com m ittee charged
F
Northwestern Banker, June, 1969
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
w ith the responsibility of rep resen tin g
the group.
C o n tin en tal I llin o is
O p en s in A m sterd am
C ontinental Illinois N ational B ank
and T ru st Com pany of Chicago has
opened a full-service b ranch in A m s
terdam , the N etherlands—its seventh
b ran ch overseas and its fifth in E u
rope.
D onald M. G raham , chairm an, said
addition of th e new b ranch gives the
b an k re p resen tatio n in m ost of the
financial cen ters of w estern E urope
and in all th e Common M arket coun
tries.
C ontinental, w hose in tern atio n al op
eratio n s ra n k am ong th e larg est of
U. S. banks, opened its first overseas
b ran ch in London seven years ago. A
second L ondon branch w as opened in
1964. L ast October, branches w ere
opened in F ra n k fu rt and in Paris.
The b ank also has rep resen tativ e of
fices in B russels, Geneva, M ilan and
M adrid, and has equity in v estm en ts in
several E u ro p ean banks to supplem ent
its E u ro p ean correspondent netw ork.
Since 1964 th e b an k also has had
full-service branches in Tokyo and
O s a k a , J a p a n . O ther subsidiaries,
affiliate and rep resen tativ e offices are
located in A frica, L atin A m erica and
Asia.
B ank A m ericard W ill
S p o n so r a TV S p ecia l
H erb A lpert and th e T ijuana B rass
have been set to appear for th e ir th ird
television special airing on th e NBC
TV N etw ork October 29, 9:00 to 10:00
p.m., w ith m ore th a n 2,600 BankA m ericard banks sponsoring th e special.
This m ark s th e first tim e th a t a bank
credit card w ill be sponsoring a m ajor
n etw o rk television special.
The first A lpert special, H erb A lpert
and th e T ijuana B rass, w as telecast
on CBS TV A pril 24, 1967, and th en
repeated N ovem ber 24, 1967. The sec
ond special, The B eat of th e Brass,
w as first aired on CBS TV A pril 22,
1968, and rep eated on th e NBC TV
F e b ru a ry 12, 1969.
The A lp ert specials are th e highest
rated series of specials in th e histo ry
of television.
D ie b o ld A p p o in tm e n t
F ran cis E. W ilkie has joined Die
bold, In co rporated as director, secu
rity system s engineering, b ank divi
sion, it w as announced by E. F.
W earstler, Diebold b an k division vice
p resident and general m anager.
fh a s e e sta b lish e s Com m unity
A w a rd to Honor fieorye Champion
IH E Chase M anhattan B ank has
T
established th e George Cham pion
A w ards for C om m unity Service to be
aw arded an n u ally to “groups th a t
have helped the disadvantaged to help
th em selves—organizations w hich have
dignified th e individual by offering
new opportunities for g reater selfrealization.”
The aw ards w ere created in honor
of th e b a n k ’s form er ch airm an “in rec
ognition of the personal co ntribution
w hich George Cham pion has m ade
over a long and distinguished career
to num ero us organizations engaged in
com m unity service.” Mr. Cham pion
re tire d on F e b ru a ry 28 of th is year.
An aw ard of $50,000, w hich m ay be
divided am ong tw o or m ore tax-ex
em pt charitable, educational or scien
tific organizations, w ill be m ade a n n u
ally for th e n ex t five years.
D uring his y ears as ch airm an of
Chase M a n h a t t a n , Mr. C ham pion
helped sp earhead th e b a n k ’s involve
m e n t in com m unity affairs th ro u g h
p rogram s th a t provide jobs to the u r
ban disadvantaged, channel funds into
projects aim ed a t im proving th e qual
ity of life in low-income areas, and
lend th e b a n k ’s technical and m ana
gerial ta le n t to organizations w orking
to accelerate th e economic and social
advancem ent of u n d e r p r i v i l e g e d
groups.
Two such projects in itiated u n d er
Mr. C ham pion’s ch airm anship are Job
O pportunities in B usiness (JOB) and
a G reat T eachers program . U nder
JOB, young m en considered “unem
ployable”—generally high school drop
outs—are given full-tim e, individual
ized rem edial in stru ctio n in basic aca
demic subjects, followed by jobs lead
ing to ban k in g careers.
U nder th e G reat T eachers program ,
w hich w as u n d ertak en to stim ulate in
te re st in business and finance am ong
m em bers of m in o rity groups, the
Chase M anhattan B ank F ou n d atio n
u n d erw rites v isits by leading econ
om ists to some 17 colleges affiliated
w ith th e U nited N egro College F und.
Mr. Cham pion form erly served as the
F u n d ’s n ational cam paign chairm an.
41
What happens when
a nine-billion-dollar bank
joins up with a Dommerich?
What happens is that a whole new banking service
is created. W hat happened was that the respected L. F.
Dommerich & Co., Inc., became the Dommerich Division of
Chemical Bank.What this means is that now Chemical Bank
can offer its correspondents commercial financing and fac
toring services.
And what this means is that now Chemical Bank can
help you help a client who needs factoring... while you main
tain your own banking relationship with him. We can help
your client over the rough spots and help him build, until he
becomes bankable.
For a fuller explanation of Chemical’s Dommerich
Division, ask your Chemical Bank Con
tact Officer for our booklet,“Facts About
Factoring & Commercial Financing!’Or
write to Mr. Robert K. Jennings, Assistant
V ice-President, N ational Division,
20 Pine St., New York, N.Y. 10015.
When your needs are finan
cial, your reaction is Chemical.
Chemical
Bank
D o m m erich D ivision
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Northwestern Banker, June, 796?
42
¡ 9 6 9 Could Ho a
L andm ark Year . . .
(C ontinued from page 36)
underscored th e A.B.A.’s consideration
of th e one-bank holding com pany bills
pending in Congress. L et me em pha
size th a t we b ro u g h t in to th is m a tte r
b an k ers re p re se n tin g as m any differ
e n t backgrounds and view points as we
could find. The resu lt, I am con
vinced, is an in d u stry p o stu re w hich
w ill help th e Congress w rite a posi
tive, con stru ctiv e law.
H o w P olicy Is Made
W hile it isn ’t possible for each of
you to tak e p a rt perso n ally in th e
A.B.A. policy-m aking process, I believe
it is essential th a t each of you know
w h at th a t process is. L e t’s see how it
w orked in th e case of th e one-bank
holding com pany legislation.
F o rm al discussion of th is issue by
p e rtin e n t A.B.A. com m ittees began
some 10 m onths ago. The position
adopted by our executive council on
A pril 16 reflected th e com posite ju d g
m ent of five com m ittees or sections of
th e A ssociation—some 300 b a n k ers in
all. T hey rep resen ted th e executive
com m ittee of th e state and n atio n
al b ank divisions, th e state associa
tion section, th e federal legislative
com m ittee, th e ad m in istrativ e com m it
tee and, of course, th e executive coun
cil. In addition, one or m ore of these
groups discussed th e m a tte r w ith —
and obtained the view s of—F ed eral
b an k su p erv iso ry officials, m em bers of
C ongress and th e A d m inistration, and
spokesm en for specialized b an k in g
groups hav in g a direct in te re st in th e
issue.
These b an k ers b ro u g h t to th e delib
erativ e process a broad ran g e of exper
tise and experience. T hey b ro u g h t
som ething else, w hich is equally im
p o rta n t to th e p erform ance of an ef
fective and responsible tra d e associa
tio n —th a t w as a w illingness to evalu
ate th e q uestion not in term s of th e ir
respective b an k s alone b u t in te rm s of
th e long-run in te re sts of banking. It
w as p rim a rily th is w illingness on th e
p a rt of b an k ers to focus on th e in d u s
tr y ’s goals—to step out of th e ir own
skins, as it w ere—th a t enabled us to
agree upon a stance for th e in d u stry
as a whole.
keep b an k holding com pany opera
tions w ith in th e financial and bankrelated area.
(2) W e have urged th a t the deci
sion by th e reg u lato ry agencies as to
those activities w hich are “financial”
and “in th e public in te re st” be final
and not subject to later attack in th e
courts.
(3) W e have suggested th e elim ina
tion of a n titru s t language from th e
various bills w hen ev er it is red u n d an t
or clearly unnecessary.
(4) W e su p p o rt a division of su p er
vision of b an k holding com panies
am ong th e th ree b anking agencies,
along tra d itio n al lines.
(5) W e su p p o rt a m ajo rity v©te de
term in atio n of perm issible activities
by th e th ree ban k in g agencies, ra th e r
th a n placing all a u th o rity in one agen
cy or re q u irin g a unanim ous vote by
all three.
(6) W e believe th a t a cut-off date is
needed to p rotect those com panies or
ganized in p rio r years, and believe
th a t th e m ost equitable date is th a t at
w hich th e first m ajor bill w as in tro
duced in th e Congress—nam ely, F eb
ru a ry 17, 1969.
(7 ) W e oppose changing th e exist
ing c rite ria for m easu rin g ow nership
or control of ban k s from th e p resen t
25 p er cent m ore of stock to a n ebu
lous, indefinite standard.
(8) W e oppose inclusion in th e hold
ing com pany of provisions w hich we
believe to be ex traneous to th e basic
issues or are unnecessary, such as th e
so-called “tie-in” clauses of both the
A d m in istratio n ’s and Mr. P a tm a n ’s
bills, and those provisions relatin g to
in terlo ck ing m anagem ents, fiduciary
rep o rts, and stock held by bank tr u s
tees.
Stand U p and Be Counted
In order to be a credible force in
gov ern m ent relations, w e m u st stand
up and be counted on broad economic
and financial m atters. No in d u stry is
b e tte r qualified to do so. Public offi
cials seek out and value th e ju dgm ent
of so-called special in te re st groups on
issues outside th e ir m ain in terest.
T h a t’s w h y y o u r A ssociation is ad
dressing itself now to such problem s
as economic education, tax reform ,
Major P oin ts of P osition
Let m e review briefly th e m ajor ele and th e economic ills confronting so
m ents of y o u r A ssociation’s position. m any of our u rb an and ru ra l com m u
(1)
W e su p p o rt a definition of func nities.
The soundness and vigor of our ef
tions in w hich b an k holding com pa
forts depend, first of all, upon th e p er
nies can engage w hich w ill provide
am ple leew ay for th e fu tu re b u t still sonal involvem ent of concerned and
N orthw estern
Banker, June,
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
1 96 9
inform ed bankers. A policy-form ulat
ing procedure th a t p erm its thorough
consideration of th e issues is, of
course, im portant. A professional
staff, expert in research and tactics, is
im portant. T estim ony by a know l
edgeable spokesm an for th e Associa
tion can be highly productive. B ut Ath e fact rem ains th a t m ost C ongress
m en w ill give less w eight to these
factors th an to th e expressed view s
K—
and in terests of th eir co n stitu en ts
<—
back home.
So, in a sense, th e buck sta rts and
stops in each of our banks. It is
th e re th a t th e stre n g th s of th e Asso
ciation rest, if w e w ill a ssert it. I t is
th ere th a t th e policy of th e Associa
tion is made, if w e w ill declare it. And
it is th ere th a t th e fu tu re grow th of
th e in d u stry is assured, if w e w ill cul
tiv ate it.—E nd.
M anu factu rers H an over
N ow L isted on N Y SE
M anufacturers H anover C orporation,
New York, one-bank holding com pa
ny w hose only asset is th e $10.1 bil
lion M anufacturers H anover T ru st "i"
Company, w as listed A pril 28 on the
N ew Y ork Stock Exchange. T he tra d
ing sym bol is MHC.
<CORPORATE SY M BO L of M a n u fa c tu re rs
H a n o v e r C o rp o ra tio n , o n e-b an k h o ld in g
com pany w hose c h ie f a sse t is $10.1 b illio n
M anufacturers H anover Trust Company
is show n in th is p h o to . Sym bol s u b s titu te s
tr ia n g u la r m id d le d e sc en d e r of “ M ” fo r
th e “ T ” in M H T sym bol.
M anufacturers H anover C orporation
listed 14 m illion com m on shares. MHT
stock w as previously trad ed over-thecounter. S hareholders of record exceed 44,000.
R. E. McNeill, Jr., ch airm an of th e
board, opened th e day ’s trad in g w ith
th e p u rchase of 100 shares of MHC
stock. He and o th er com pany officials,
including G abriel Hauge, president,
and E ugene S. N orthrop, vice chairm an, w ere w elcom ed on th e floor by
R obert W. H aack, E xchange president.
a a
<
f
*
^ ^
t -
w
<
ir~
43
P residential Palace, Quito, E cuador— ju s t fifte e n m inutes from a Bank o f Am erica branch.
M a n - o n - t h e - s p o t ® .. . in Q u it o . Her© In Ecuador, throughout Latin
Am erica, and around the world, hefs the man to se e for a c im iic r c ia l
foamf foreign exchange, im port-export financing, or any ether Interna
tional financial service* And B A N K O F A M E R I C A can put him to
work for you today, If your firm is interested in expanding here or any
where else Sn the whole wide world, see Bank of A m erica—first in banking.
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Banca d’America e d’ltalia: over 85 offices throughout Italy. ©1969 Bank of America National Trust and Savings Association • Member F.D.I.C.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Northwestern Banker, June, 1969
44
I t a s it-
C
a n i 'v p t s
T o State B oard
. . .
(C ontinued from page 29)
practices, job assignm ents, and com
pensatio n plans.
U n it P resid en t Concept
At A m erican N ational, w e have
adopted w h a t is called th e u n it p re si
dent concept. U nder this, each su p e r
visor is th e p resid en t of his u n it di
rectin g action and ta k in g responsibil
ity w ith in his area bounded b y policy,
budget, m oral and legal lim itations.
The first in g red ien t necessary for
im plem en tatio n of th is ty p e of o rgani
zation stru c tu re is th e en th u siastic
su p p o rt of it by those w ho do th e m an
aging. F o r th a t reason, w e began by
calling all our division heads to g eth er
in a w eekend re tre a t outside th e Chi
cago area.
At th a t tim e, to g eth er we w orked
out th e second necessary in g red ien t—
th e tools req u ired for th e organization
stru c tu re to operate effectively.
Corporate Creed
We began by developing a creed—
th is is an expression of th e type of cor
porate p erson w e are and hope to be
T his is stated, “Our basic justification
for corporate existence is to earn m ax
im um profit for our stockholders in
such m an n er th a t th ey m ay tak e ju s
tifiable pride in th e co rporation and in
th e q uality and level of our earn in g s.”
S upportin g th is are eight principles
w hich fu rth e r define our character.
The second tool is tw o sets of goals
—long ran g e and c u rre n t year. These
set th e objectives w e in ten d to accom
plish and th e steps n ecessary to reach
them .
The creed and goals to g eth er form a
philosophy for corporate living and
grow th show ing w h ere w e expect to
go, th e distance to be trav eled in the
first year, and th e m a n n e r in w hich
we w ill travel.
O rganization ch arts are th e th ird
tool. Our aim w as to clearly define
th e lines of resp o n sib ility and a u th o r
ity w hile, a t th e sam e tim e, enhanc
ing our organ izatio n ’s flexibility and
inform ality. T he feeling is th a t if
th e re is no question about lines of re
sponsibility and au th o rity , th e proba
b ility of cross-fertilization of ideas,
suggestions, tho u g h ts, and co n stru c
tive criticism w ill be increased.
Our n e x t tool is th e job description.
E ach officer and key staff m em ber, us
ing a stan d ard form at, w ro te up his
duties, responsibilities, and area of in
fluence. The job description w as th en
review ed b y each m an w ith th e in d i
vidual to w hom he rep o rts. The re
su lt w as a clear ag reem en t of w h at
each m an expected and w as expected
to do.
Northwestern Banker, June, 1969
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
F ifth , stan d ard s of perform ance
w ere set for jobs. E ach officer w as
asked to p u t in w ritin g w h a t he ex
pected to accom plish in th e ensuing
12-month period. Again, we cross
checked the stan d ard s w ith each m an ’s
su p erio r to resolve differences.
Sixth, w e b ro u g h t in a m anagem ent
consulting firm to help us determ ine
our cost p er u n it of w ork. W e began
by identifying 113 expense centers
th ro u g h o u t th e bank. Next, a sixm o n th period in 1967 w as chosen as a
base period and given an index value
of 100. Thus, if c u rre n t operations re
su lt in a key factor index of 95, the
su p erv iso r has found an effective w ay
to reduce his cost per u n it of w ork.
On th e o th er hand, if th e index has
risen to 105, the supervisor should
look for th a t m ore effective way.
Profit C enter A ccoun ting
The m ost recen t tool, w hich is now
being im plem ented, is profit center ac
counting. T hirty-seven profit centers
w ere chosen, each of w hich includes
one or m ore of th e previously m en
tioned expense centers. If a profit
cen ter does not produce an outside in
come, it is given credit for a paper
income. Costs of w ork perform ed
th e re are charged w ith a m ark-up to
o th er profit cen ters receiving th e bene
fit of th e service.
W ith th ese tools at his disposal, the
u n it p resid en t has th e responsibility
for em ploying his capital—his budget
—and his em ployees to m axim um ad
v an tag e in order to m axim ize profit.
He has a one-man board of directors
(his im m ediate superior) to w hom he
can tu r n for consultation, b u t th e re
sponsibility for o perating his d ep art
m en t falls en tirely on him . His
“b o ard ” can ask for rep o rts at any
tim e so th a t he can get “feedback” on
p rogress of th a t profit center.
T here is an executive com m ittee
w ith in th e b an k th a t can veto a pro
posal, if it is deem ed necessary, w hen
th e u n it p resid en t tells th a t com m ittee
his plan. R eports also come up from
low er levels to u p p er m anagem ent so
th a t those w ith h ig h er responsibility
can co n stan tly keep tabs on w h a t’s
going on in any unit.
In conclusion, basic concepts of
m an agem ent are th e sam e for all sizes
of corporations, and th e w ide variance
am ong th e top 100 banks show s th a t
m an agem ent is n ot practiced equally
w ell ju s t because of size. Good m an
agem ent is a necessity and th e p re
req u isite of all banks, regardless of
size, and good m anagem ent policies
can be adapted to each bank to fit its
p a rtic u la r needs and goals.— End.
Neil Sm ith, vice p resid en t and direc
to r of th e F irs t N ational B ank and
T ru st Com pany of M ount Vernon, has
been appointed a m em ber of th e Illi
nois B oard of B anks and T ru st Com
panies for a threeyear te rm by th e F t "
Hon. R ichard B.
Ogilvie, governor
of Illinois.
In c o n n e c t i o n
w ith h is board
m em bership, Mr.
S m ith has also
been n a m e d to
serve on th e Gov
e
rn o r’s A dvisory
N. S M I T H
C o u n c il, headed
by Donald S. P erk in s, p resid en t of
Jew el Companies, Inc.
A t present, in addition to his new
state-oriented duties, Mr. Sm ith is
p resid en t and director of th e Lincoln
H eritage Life In su ran ce Company;
serves as vice presid en t and director
of the F irs t N ational B ank and T ru st
Company, M ount V ernon, 111.; C entral
B ank and T ru st Com pany of Owens- +
boro, Ky., and th e E d g ar C ounty N a
tional B ank and T ru st Com pany of
P aris, 111. He is also a director of the
Security N ational B ank of Cairo, 111.
The financial in stitu tio n s and insur- q—,
ance firm compose th e Com m unityA ction Group Companies.
H eads C hicago A d G roup
W illiam R. B eckm ann, director of
ad v ertisin g and public relations, N a
tional B oulevard B ank of Chicago, w ill
accept th e p resid en t’s gavel from out
going P resid en t A lan B. E irinberg,
E xchange N ational B ank of Chicago,
at th e Chicago F in an cial A d v ertisers’ < i
Ju n e 7 in stallatio n b an q u et and th ea
tre p a rty to be held a t th e Ivanhoe
R estau ran t 3000 N. C lark Street, Chi
cago.
O ther officers nam ed by th e 43-yearold financial adv ertisin g group are:
Donald J. Crowder, F irs t F ed eral Sav * r
ings & Loan A ssociation, vice p resi
dent; George M. M orvis, Illinois B ank
ers A ssociation, secretary, and Violet
* F,
M. C hristin, N ational B ank of A ustin,
treasu rer.
><
N ew Ad A gency
Jo h n R. M ontgom ery, III, president
of Lakeside Bank, Chicago, has an- q_
nounced the appointm ent of Carobus
& F redericks, Inc., as th e b an k ’s ad- ~
v ertisin g agency. Carobus & F re d
ericks specializes in ad v ertising and " ^
public relations for financial in stitu
tions.
45
George’s ideas are free.
Even better than free, because they can usually save you me
With thirty years of commercial banking experience, and as
head of our Correspondent Bank Division, George knows how
to handle just about any problem you might need help with.
George is well known in banking and corporate circles and
in the event he doesn’t have the answer on the tip of his
tongue, he knows right where to go to get the answers for
Answers, for example about financing. About
introducing you to banks in distant cities to expand
your customers facilities.
He knows too, about the delicate negotiations involved
in the buying or selling of banks. And he can help you
find good people when you need to hire personnel.
George can initiate action for you on-the-spot,
without time-consuming committee approvals or
other red tape.
At the Idea Bank, George is your man with the
ideas. Why not call him about some of them
today at (312) 621-5042.
Am erican National <The Idea Bank
American National Bank and Trust Company of Chicago
La Salle at Washington 60690
Phone (312) 621-5000
Member FDIC
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Northwestern Banker, June, 1969
46
I HEARD THE M INNESOTA BANKERS
CONVENTION IS AT THE S T PAUL HILTON
JU N E 9 - 1 1,AND RALPH NELSON,
FUDYDSTEWART7
PAUL LINDHOLM
A N D ALL THE &AN6
FROM
NORTHWESTERN BAN K W ILL B E T H E R E .
DEPARTMENT OF BANKS AND BANKERS
Northwestern
National
Bank o f M in n e a p o lis
May we help you today?
M e m b e r F e d e ra l D e p o s it I n s u r a n c e C o r p o r a tio n
Northwestern Banker, June, 1969
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
M in n e s o ta
S t•
P u n tto r
Paul
June 9
N O TH ER o u tstan d in g pro g ram of sp eakers has been
arran g ed for th e 79th a n n u al convention of th e Minnesota B an k ers A ssociation to be held Ju n e 9-11 at St.
P aul H ilto n H otel in St. Paul. J. J. C horom anski, p resi
d e n t of th e MBA and p resid en t of th e C rystal State Bank,
C rystal, h as announced th a t th e three-day convention w ill
featu re th e follow ing w ell know n personalities:
ABA P re sid e n t W illis W . A lexander; form er Jo in t
Chiefs of Staff C hairm an G eneral M axwell Taylor;
NASA c o n su lta n t Dr. Je a n Picard; in sp iratio n al clergy
m an Dr. R euben G ornitzka, and in ern atio n al TV and
record in g s ta r A nita B ryant.
F estiv ities w ill open as u su al w ith golf on Monday,
Ju n e 9, w ith re g istra tio n and first tee-off com m encing at
7.30 a.m. at M idland H ills C ountry Club.
A ctual convention activities get u n d erw ay Tuesday
m orning, Ju n e 10. A F irs t N ight P atio P a rty w ill be held
on th e St. P a u l H ilton E a st T errace th a t evening.
W ednesday evening, Ju n e 11, th e an n u al b an q u et w ill be
follow ed by Miss B ry a n t’s scin tillatin g stage show.
The MBA no m in atin g com m ittee took official action
last m o n th to place before th e m em bership th e following
nam es for election as MBA officers for th e com ing year,
as endorsed at th e nine d istric t m eetings last fall:
Stan R. W heaton, executive vice presid en t, F irs t National B an k of E lk R iver, to succeed Mr. C horom anski as
president; M arvin R. Cam pbell, p resid en t of th e F irs t
N ational B ank of Crookston, to succeed Mr. W heaton as
vice president, and Ora G. Jones, Jr., p resid en t of the
F irs t N ational B an k of Red W ing, for reelection to a
second te rm as tre a su re r.
K en n eth A. W ales, executive secretary, and T ru m an
Jeffers, secretary , of th e MBA staff have been w o rking
w ith association officials to p rep are th e follow ing program :
A
v
^
A
- *■
>
c
> **y
'J ~
>
MONDAY, JU N E 9
y>
K. A. W A L E S
H o n k e r s to M e e t in
S t.
^
O. G. J O N E S , JR .
M. R. C A M P B E L L
S. R. W H E A T O N
T. J. C H O R O M A N S K I
A.M.
7:30-1:00 A n n u al M en’s Golf T o u rn am en t—M idland H ills
C ountry Club.
7 itth
H ilt o n
H o te l
11 , 1969
P.M.
4:00
4:00
R egistration Opens—St. P aid H ilton, Hotel,
L ow er Lobby.
H ospitality Rooms Open (O ptional)—u n til m id
night.
TU E SD A Y , JU N E 10
A.M.
7:45
8:00
R egistration—Low er Lobby, St. P aul H ilton.
A gricu ltu ral B reakfast—M innesota Ballroom .
C onvention Call to O rder—J. J. Chorom anski,
P resident, M innesota B ankers Association.
Invocation.
P resen tatio n of Colors.
A g ricultural B reakfast Program .
P residing—Leslie W. P eterson, C hairm an,
MBA A g ricultural Committee; E xecutive Vice
P resident, F a rm e rs State Bank, T rim ont.
Intro d u ctio n s and Com m ents—C hairm an P e te r
son; 4-H D elegate and F F A Officers.
Address.
9:30
Recess.
10:00
F irs t B usiness Session—M innesota Ballroom .
Call to O rder—P residing—Leslie W. P eterson
A ddress—Sherw ood O. Berg, Dean, In stitu te of
A griculture, U n iversity of M innesota, St. Paul.
P anel D iscussion on C hallenges to A gricultural
B anking.
11:30
A nnouncem ents, TV D raw ing and Recess.
11:30-1.30 H ospitality Rooms Open.
The follow ing groups have an n u al luncheons
planned for Tuesday noon:
11:30
P ioneer and P a st P resid en ts Club—R eception
and L uncheon—Capitol Ballroom .
11:30
M innesota Club — C entral States G raduate
School of B anking—R eception and L uncheon—
W abasha H all South.
11:30
M innesota School of B anking and M idw est
B anking In stitu te —R eception and L uncheon—
W abasha H all N orth.
Northwestern Banker, June, 1969
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Minnesota News
48
A NITA B R Y A N T
11:30
A. R. G O R N I T Z K A
M innesota F lying
Luncheon.
B an k ers—R eceptions
M . D. T A Y L O R
and
P.M.
2:00
Second B usiness Session—M innesota Ballroom.
Call to Order-—MBA P resid en t J. J. Choromanski.
G reeting F ro m The M ayor of St. P au l—The
H onorable T hom as Byrne.
R eport of th e T re a su re r—Ora G. Jones, P resi
dent, Goodhue C ounty N ational B ank, Red
W ing.
C onsideration of A m endm ents to the MBA
C onstitution and By-Laws.
R eport of th e N om inating Com m ittee.
E lection of Officers.
A ddress — W illis W. A lexander, P resident,
A m erican B ankers Association; P resident,
T ren to n T ru st Company, T renton, M issouri.
4:15
A nnouncem ens, TV D raw ing and Recess.
4:30-6:00 H ospitality Rooms Open.
6:00
F irs t N ight P atio P a rty —E a st T errace, St. Paul
H ilton Hotel.
B uffet D inner
Strolling M usicians
Cash B ars
7:30
D ixieland e n te rta in m e n t by Dave W esley and
the B arb ary Coast B anjo Band.
9:00
H ospitality Rooms Open.
11:30
11:30
Noon
12:00
12:00
2:00
W ED N ESD A Y , JU N E 11
A.M.
8:30
9:00
R eg istratio n —L ow er Lobby.
T hird B usiness Session—M innesota Ballroom.
Call to O rder—P resid in g —MBA P resid en t J. J.
Chorom anski.
A m erican B an k ers A ssociation M eeting and
E lection—G lenn A. Uggen, ABA State Vice
P resident; P resid en t, Peoples State Bank,
W ells.
C om m ents—M arvin L. Rye, Com m isisoner of
B anks, State of M innesota.
P anel D iscussion and Q uestion-A nsw er Session
on B anking R egulaions — T ruth-in-Lending,
R egulation Z, B ank P rotective Act and O ther
A nton S. P eterso n
A nton S. P eterson, 61, for 38 years
an em ployee of th e W adena F irs t N a
tional B ank, died recen tly in St.
M ary’s H ospital in R ochester. Mr.
P eterso n had served as cashier and
m anager of th e in su ran ce d ep artm en t
a t th e bank.
E m p lo y s N ew C ashier
A drian G oldberg has been nam ed
cashier at th e E m p ire State B ank in
Cottonwood. Mr. Goldberg comes to
N o rth w estern
Banker, June,
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
1969
4:15
4:30
6:30
8:30
9:30
W. W. A L E X A N D E R
O perational R equirem ents.
R eport of R esolutions Com m ittee.
a A,
A doption of R esolutions.
“F rom Balloon Gondola to M anned S pacecraft” -A .
—Dr. Jean Picard, NASA M anned Spacecraft
C enter C onsultant, M inneapolis.
A nnouncem ents, TV D raw ing and Recess.
Cash B ars Open—Low er Lobby.
A nnual L adies’ L uncheon—M innesota Ball
room.
Speaker—Dr. M ary McNeill, Chicago P sychi
atrist.
A nnual M en’s L uncheon—W abasha Hall.
P residing—MBA P resid en t J. J. C horom anski.
A w arding of Golf Prizes.
A ddress—Billy M artin, M anager, M innesota
Tw ins Baseball Club.
F o u rth B usiness Session—M innesota Ballroom.
Call to O rder—P residing—MBA P resid en t J. J.
C horom anski.
“V ietnam —S ettlem ent and T hen W h at?”—
G eneral M axwell D. Taylor, F o rm er C hairm an,
Jo in t Chiefs of Staff and A m bassador to V iet
nam; President, In stitu te for Defense A nalysis,
A rlington, V irginia.
R eport of the MBA P resid en t and E xecutive
S ecretary—J. J. C horom anski and K enneth A.
W ales.
“Y our S tairw ay to Som ew here”—Dr. A. R eu
ben G ornitzka, E xecutive D irector, D irection,
Inc., P alm Desert, California; F o rm er P asto r of
C entral L u th e ra n Church, M inneapolis.
A nnouncem ents, TV D raw ing and A djourn.
R eception—Cash B ars Opens on th e E ast
Terrace.
A nnual C onvention B anquet—M innesota Ball
room.
Invocation.
In tro d u ctio n and In stallatio n of New Officers.
E n te rta in m e n t—Stage Show w ith Singing Star
A nita B ryant.
D ancing—Ju les H erm an and His O rchestra.
— End
th e b an k from G rand F orks, N. D.,
w here he had served as a senior ex
am in er w ith the F ed eral Deposit In
su rance C orporation since Septem ber,
1967.
Mr. Blachow ski began em ploym ent
w ith th e ban k last October as collector
for th e tim epay d ep artm en t and w as
elected a ssistan t cashier in Jan u ary .
N ew V ice P r e sid e n t
M anager in M ankato
L a rry M. Blachow ski has been ap
pointed m anager of th e tim epay de
p a rtm e n t of th e N ational B ank of
Com m erce in M ankato, according to
Jo h n J. H ow ard, executive vice p resi
dent.
Lew is Swanson, presen tly of G rand
Rapids, has been nam ed a vice p resi
den t a t the State B ank of Tower. Mr.
Sw anson is also m anager of the Tower-Soudan In su ran ce Agency, and he
and his fam ily w ill be m oving to
Tow er in th e n ear fu tu re.
-L-<4~~
49
G E O R G E H EN R Y HAS AN E X P E R IE N C E D IDEA FOR YOU:
talk to our
Chief E ngineer about
successful profit planning
George Henry has been the head, of our Correspondent Bank
Division for 20 years. H e’s been in the banking business for over
40 years. H e ran his own bank at one time. His father was a
banker. His son is a banker. So if you have a banking problem
that seems brand new, see George. He probably experienced the
same thing somewhere, sometime . . . and solved it. Like the
rest of our staff, he’s always interested in money management for
greater profits in your bank. Give him a call at the Bankers'
Bank of the Upper Midwest . . . 612/334-4141.
...f ir s t — _
M in n e a p o lis
H A S
A N
I D E A
F O R
Y O U
Correspondent Bank Division • First National Bank of Minneapolis • Member FDIC.
N o r th w e s te r n Banker, Ju n e , 1969
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
50
Minnesota News
M innesota t
H E 79th an n u al convention of the
M innesota B ankers A ssociation, to
be held Ju n n e 9-11 at St. P au l H ilton
H otel in St. Paul, is u n d e r th e g eneral
c h a ir m a n s h ip of
H. W illiam Blake,
ch airm an of th e
board a t N o rth
w e ste rn N ational
B ank in St. Paul.
O ther m em bers of
th e g eneral com
m itte e in c lu d e
J o h n F. N a s h ,
president, American National
H. W . B L A K E
B a n k & T ru st
T
Tri-County State B ank of O rtonville,
'onrentionCommitteeOsrtonville—from
$100,000 to $125,000
president, A m erican N ational B ank
and T ru st Company; Donald O. Aschb ren n er, vice president, D rovers State
B ank, South St. Paul; R obert G.
Borow ske, vice president, N o rth w est
ern State Bank; R. Jam es Gesell, p resi
dent, C herokee State Bank; A rth u r
Nelson, A m erican N ational B ank and
T ru st Company; R oland L. N ordlund,
executive vice president, H illcrest
State Bank; V ictor P. Reim, assistan t
vice president, Com m ercial State
Bank; Jo h n A. R itt, assistan t vice
president, M idway N ational Bank; W il
liam Sands, F irs t N ational Bank, and
Jack W. W eber, cashier, Sum m it N a
tional B ank.
H otel, U tilities and T ransportation
W alter A. C arpender, vice president,
M idway N ational Bank; E. Roger
C unningham , assistan t cashier, F irs t
N ational Bank; David R. Fesler, p resi
dent, L ib erty State Bank; W. H. Kortum , vice president, W estern State
Bank, and A rth u r W. M elander, p resi
dent, F irs t M erchants S tate Bank.
J. F. N A S H
P. H. N A S O N
Company; P hilip H. N ason, president,
F irs t N ational B ank, and Dr. A. E.
R itt, p r e s i d e n t , M idway N ational
Bank, all of St. Paul.
The convention functions are being
planned by the follow ing com m ittees,
all from St. Paul, w ith ch airm an listed
first:
B anquet and E n tertain m en t
Jo h n A. M cHugh, N o rth w estern N a
tional Bank; A rth u r A. H aessig, vice
president, A m erican N ational B ank
and T ru st Company; R obert V. Kochendorfer, vice president, N o rth w estern
State Bank; Jam es T. Gowan, a ssistan t
vice president, F irs t N ational B ank,
and Donald L. Sm ith, vice president,
L iberty State Bank.
F irst N igh t Party
Jam es A. R itt, vice president, Mid
w ay N ational Bank; Jo h n D. Cleary,
assistan t vice president, A m erican N a
tional B ank and T ru st Company; M ar
vin L. Ellison, a ssistan t vice president,
N o rth w estern N ational Bank; George
R. Janssen, F alcon H eights State
Bank, and H en ry N. Snyder, assistan t
vice president, F irs t N ational Bank.
L ad ies’ Luncheon
Isabel Shea, F irs t N ational Bank;
Leona Arceno, E a ste rn H eights State
Bank; Alice B rennan, M idway N ation
al Bank; Rosalie Galles, A m erican N a
tional B ank and T ru st Company;
V alerie H echt, N o rth w estern N ational
Bank, and B etty A nn Malcolm, N o rth
w estern N ational Bank, South St. Paul.
Golf
R obert E. Sipple, ad m in istrativ e vice
N o r th w e s te r n Banker, Ju n e , 1969
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Speakers’ R eception
W. L. Boss, vice president, F irs t N a
tional Bank; R obert J. H ubbell, p resi
dent, E a ste rn H eights State Bank, and
Donald H. Johnson, a ssistan t vice
president, A m erican N ational B ank
and T ru st Company.
P u b licity
Glen O. Olson, assistan t vice p resi
dent, A m erican N ational B ank and
T ru st Company; W. A ndrew Boss,
president, Gambles C ontinental State
Bank; Thom as Dolan, N o rth w estern
N ational Bank; Daniel H aslerud, vice
president, M innesota State Bank, and
Silas E. Rogers, assistan t vice p resi
dent, F irs t N ational Bank.
R egistration
by sale of new stock.
N am ed R e p resen ta tiv e
Jo h n C arlander, ch airm an of th e
S tate B ank of F airb au lt, has been M
elected D istrict II rep resen tativ e to ■,
th e N ational A ssociation of S upervi
sors of State B anks A dvisory Council, -v j
D ir e cto r at P roctor
N ew at A lbert Lea
R obert C. R undquist has joined the
in stallm en t loan d ep artm en t of th e
F irs t N ational B ank of A lbert Lea.
He w as previously em ployed as a loan
officer for In d u stria l C redit Com pany
at H astings, Nebr.
H o n o r ed as
“ F irst Citizen"'
H a rry W hittem ore Gooch, retired
F irs t A m erican N ational B ank vice
president, has been chosen D u lu th ’s
“first citizen of
1969” a t th e 45th
a n n u a l H a l l of
F a m e D in n e r,
sponsored by th e
David Wisted-Zen ith City A m eri
can Legion Post.
Jud g es re p re
sen tin g 28 labor,
b u s i n e s s , c iv ic
and service organ
H. W . G O O C H
izations cited Mr.
Gooch for his ou tstan d in g service to
the com m unity in civic affairs and
charitable functions.
A bout 500 persons w itnessed the
aw ard presen tatio n m ade by D istrict
Judge P atrick D. O’B rien at the b an
quet in the H otel D uluth.
C elebrates 5 5 Y ears
J oin s 1st N ation al
N am ed at D u lu th
C apital S tock In creases
The follow ing capital stock increases
have been approved by th e M innesota
D ep artm ent of Commerce:
Santiago State Bank, Santiago —
from $50,000 to $75,000 by stock divi
dend.
w
Mrs. Shirley B ourm an has been
elected a director of th e F irs t N ational * B ank of P roctor and th e first N ational
Company.
,J~ ^
G erald M. K anne, N orth w estern N a
tional Bank; T hom as J. Skinner, assist
a n t vice president, A m erican N ational
B ank and T ru st Company, and R ich
ard C. Sw anberg, assistan t vice p resi
dent, F irs t N ational Bank.
Cliff M ittelstaedt has joined the
F irs t N ational B ank of W aseca as
controller. Mr. M ittelstaedt has been
em ployed at Tyroholm -Sjoberg, Inc.,
as business m anager for the p ast 14
years.
*
The F arm ers State B ank of U psala
observed its 55th an n iv ersary last
m onth w ith an open house.
L aw rence E. H a b stritt has been ap
pointed a ssistan t cashier in th e com
m ercial loan dep artm en t of N o rth ern
City N ational Bank. Mr. H a b stritt
served as a b ank exam iner w ith F irs t y- r
System Services, Inc., M inneapolis,
-<fc~
from 1964 u til his c u rre n t appointm ent
at th e N o rth ern City N ational.
f--
R esig n s at B ird Islan d
A1 Schwab, assistan t cashier at the
State B ank of B ird Island, has resigned to accept a position as assistant
cashier at th e bank in C annon Falls.
* "
51
Gil Falk, John Ordos, John Hunt, Doug Johnson
f
_> y
->
> >■
You
have friends
at Midland, too! W hether it’s helping to hatch your
i. >,
-i -,
nest eggs profitably—solve operational problems—collections, data
processing procedures, systems, transits, credits—or securing tickets
to the ball game (purely personal service) call one of your friends at
Midland. He’ll scramble to help you hatch a solution to your problem
—Midland Men seldom lay an egg—on any project! A crack team
to count on for new opportunities!
> -,
^ 9 0 9 -1 9 6 9 ^
Midland National Bank
ofMinneapolis ^
Call 332-0511 401 Second Ave. So. • Minneapolis, Minn. 55440
M em ber Federal D eposit Insurance C orporation
*
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
N o r th w e s te r n Banker, Ju n e , 1969
Minnesota News
52
Yon
W ill
Soo
T
ni t ho
79th .ìli miositi fi 4Hurt>iii i iw
H E follow ing m etro p o ln tan b an k
ers, service and equipm ent dealers
have indicated th e y w ill be atten d in g
th e M innesota B ankers A ssociation
Ju n e 9-11 in St. Paul.
T
Chicago
A m erican N ational Bank & Trust
Company: J. Roy W est, second vice
president.
C ontinental Illin o is N ational Bank
& T rust Company: C harles W. Bat-
tey, vice president; Sam uel D. Ad-
doms, second vice president, and Len
W. Busse.
F irst
N ational
Bank
of
Chicago:
N evin G. Bowser, vice president, and
Clarence E. Cross, .Jr., assistan t cash
ier.
H arris T rust & Savings Bank: W il
liam W. Howell, assistan t vice presi
dent.
N orthern T rust Company: Robert
P. Kline, vice president, and John N.
Fix, second vice president.
D etroit
N ational B ank of Detroit: B arry B.
Jones, a ssistan t vice president.
First
D uluth
A m erican N ational
Bank:
C hester C. Lind, president; O rley R ath,
vice president, and L eonard E. G rif
fith and Jo h n R. O ltm anns, assistan t
vice presidents.
N orthern C ity N ational Bank: C.
G lenn Rye, president; J. H. Claypool,
senior vice president; L ynn B. D uncan,
vice president, and R. M. Ham m erstrom , assistan t vice president.
New' York
M anhattan Bank:
Jo h n C.
A rchibald, vice president; A. K. Small,
second vice president, and Ja y J.
LaRusso, assistan t treasu rer.
Chem ical Bank: R ichard G. Hall, as
sistan t vice president.
F irst N ational City Bank: A. T. E l
lis, vice president, and C. N orm an Gus
tafson.
Irvin g T rust Company: R. M. Laudenschlager, assistan t secretary, and
T. W. P ettu s, rep resen tativ e.
Chase
M anufacturers H anover T rust Com 1 V
pany: Jo h n F. King, vice president,
and Carl G. Carlson, assistan t vice
president.
W innipeg
Bank of Canada:
D. W.
M orison, d istrict general m anager; H.
G. H urd, m anager, W innipeg office,
and A. B. R eim er, m anager, com m er
cial-industrial developm ent.
R oyal
LARRY BROOM
HOYT LATHEN
W e re looking fo rw a rd
to meeting all
our Minnesota and Montana
Banker Friends
at the
State Convention
NORTHWESTERN NATIONAL RANK OF SOUTH ST. PAUL
South Saint P au l, M in n esota
AFFILIATED WITH NORTHWEST BANCORPORATION
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION
Bank E quipm ent and Other F irm s
Bank B u ild in g & E quipm ent Corpo
ration: R obert Schaeffer.
B an kers Service Corporation: Gor
don Dodge.
D aw son H ail Insurance: Jam es R.
Dawson and Lyle C. A skerooth.
Diebold, Inc.: R. L. Schutt, Lee J.
Sutton, R alph M. Kelley, R ichard
C herry and Scott K ennison.
L aw rence
W arehouse
M ortgage G uaranty In surance Cor
poration: Tom S. Maple, Jr.
M osler Safe Company: C. R. B row n
ing, Donald S tephan and B arry P itts.
N ew York T erm inal W arehouse
Company: R. C. Jorgensen, Leo H.
H erm es, Jr., Jo h n H ogan and Jo h n
E. Vaughn.
N orth C entral Companies: Bill Stohr,
Roger P ulkrabek, D ennis Carlson, Bob
Ram aley, Gene H anson, L a rry W alsh,
Vic Kozlowski, Bill Gregg and Jack
Kemp.
N ational F id elity L ife Insurance
Company: G ary L. H arris and Charles
A. G ustaveson.
R ec Check, Inc.:
and D uane Mills.
N o r th w e s te r n Banker, June, 1969
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Company:
H enry D. Rham e.
David A nderson
53
W B M M B T O S T . P A U L!
J O H N F. NASH
P re s id e n t
ROBERT E. S IP P L E
A d m in is tra tiv e V ice P re s id e n t
A R T H U R A . HAESSIG
Vice P re s id e n t
J O H N D . CLEARY
A s s 't V ice P re s id e n t
D O N ALD H . JO H N S O N
A s s 't V ice P re s id e n t
A R T H U R I. N ELSON
C orrespondent B ank O ffic e r
The American National Bank and Trust Company cordially invites you
to join us during the Minnesota Bankers Association Convention in our Hospitality Suite
Room 1601 June 9 and 10 at the St. Paul Hilton Hotel.
o American
l^ational Ttank^and ‘T rust Company7th & ¿Robert
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
228-2345
¿Member FDIC
Northwestern Banker, June, 7969
S R E P O R T E D earlier, Roland
N ordlund has been nam ed p resi
dent of the H illcrest S tate B ank, St.
Paul. Mr. N ordlund w as one of th e
original th re e in co rp o rato rs of the
b ank and has been active in th e b a n k ’s
m anagem ent since it w as established
in 1955. He w as elected executive vice
p resid en t in 1965.
A
R. L. N O R D L U N D
W . A. S M I T H
W illiam A. Sm ith, Jr., has been p ro
m oted to vice presid en t. Mr. Sm ith
joined th e b an k in 1957 as cashier. He
has been in th e ban k in g business since
1949.
Roy W. W em eier has been elected
assistan t vice president. He started
his b ank in g career in 1950 and joined
th e H illcrest State B ank in 1961 as
assistan t cashier.
Jo h n V. L usk has been nam ed to
th e post of a ssistan t m anager, in stall
m ent loan d ep artm en t. He h as been
w ith th e b ank since 1965.
H arry C. Piper, Jr., chairm an of P i
per, Jaffray & Hopwood, has an
nounced th a t W esley J. A nderson, for
m er vice presid en t and director of Allison-W illiam s Company, has joined
P ip e r’s corporate services departm ent.
* * *
F rederick W inston, in tern atio n al de
p a rtm e n t officer at F irs t N ational
B ank of M inneapolis, has been elected
a new d irector of th e M innesota W orld
T rade Association.
* * *
H arold H. H am m er, vice president
of finance w ith C ontrol D ata Corpo
ratio n since 1966, has been nam ed a
directo r of th e firm. Mr. H am m er is a
d irector of th e Com m ercial C redit
C om pany and N o rth w estern N ational
B ank of M inneapolis.
* * *
The N orth w estern N ational B ank of
St. P au l has joined th e A m erican E x
press C om pany’s E xecutive C redit
Card Plan.
U nder a recently signed agreem ent,
th e b an k and A m erican E x press w ill
offer a jo in tly sponsored credit card
carry in g a m inim um of $2,000 line of
credit, plus all privileges of th e exist
ing A m erican E x p ress card.
T he line of credit featu re of the new
card enables a m em ber to obtain funds
at th e b an k in cash, tra v e le r’s checks
or cred it to his account.
Since 1919
U n d e rw rite rs and D istrib u to rs
o f C o rp o ra te and
M u n icip al S e c u ritie s
ALLISON-WILLIAMS COMPANY
N O R T H W E S T E R N B A N K B U ILD IN G
MINNEAPOLIS, MINNESOTA 55402
Phone: 333-3475 (Area Code 612)
Northwestern Banker. June, 1969
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
J
Mid A m erica Bancorporatioii, n ew
M innesota m ulti-bank holding com pa
ny, has filed w ith th e Securities and
E xchange Com m ission a reg istratio n
statem en t covering th e issuance of
150,000 shares of common stock for
public sale.
Proceeds of th e sale w ill be used
p rim arily to m eet some $1.2 m illion in
debt in cu rred w ith th e acquisition of
H ighland P a rk State B ank in St. Paul.
Mid A m erica also has an agreem ent
to offer shareholders of V alley N ation
al Bank, Eagan, 3.4 of its shares in
exchange for each V alley share.
The holding com pany has 2,300
shares ou tstan d in g of w hich W. G.
A ndrew s, board chairm an, owns 57
p er cent, and F rederick A. M cGonigle,
a director, has 43 per cent.
* * *
H ow ard A. H an sen , com ptroller of
th e F irs t N ational B ank of St. Paul,
has been elected presid en t of the Tw in
Cities ch ap ter of th e F inancial E xecu
tives In stitu te.
V irgil M. D issm eyer, senior vice
p resid en t in charge of operations at
th e N o rth w estern N ational B ank of
M inneapolis, has been elected secre
ta ry by th e group.
* * *
A new on-line data inform ation sys
tem has been installed at th e F arm ers
and M echanics Savings B ank of M in
neapolis to help provide one-stop cus
tom er service for m ore th a n 260,000
accounts at th e bank.
T ellers can process savings and oth
er financial tran sactio n s w ith o u t leav
ing th e ir booths by using th e IBM
1060 teller term inals, w hich are linked
to an IBM System /360 Model 40 com
puter.
A ccording to G. W . B oshohn, vice
presid en t and com ptroller, “A custom
er now can com plete all his business
in ju st seconds at one teller w indow
or in one d ep artm en t.”
Office and w o rk areas for DykinsH andford, Inc., architects located in
55
bankers of the
Big Sky Country
and
Land of Sky Blue Waters
Greetings from the Men of Marquette!
See you a t the June conventions
M inn e so ta — St. Paul H ilto n , June 9-1 I
M o n ta n a — Jackson Lake Lodge, June
Carl R. Pohlad, President
12-14
Burton N. Noah, Executive Vice President
M arquette National Bank
SEVENTH AT MARQUETTE, MINNEAPOLIS, MINNESOTA/333-5411
Member Federal Deposit Insurance Corporation
CORRESPONDENT BANK DEPARTMENT: Avery Fick, Vice President • Otto Preus, Vice President • Bill
Addington, Assistant Vice President • Lome Newhouse, Assistant Vice President • Len Erickson, Assistant
Vice President (Credits) • Doug Peterson, Assistant Vice President (Computers) • Paul Roche, Assistant
Vice President (Investments) • Don Sand, Assistant Vice President (Investments)
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
N o r th w e s te r n Banker, Ju n e , 1969
56
Minnesota News
Color Cholo Cut on Hanli Card
F U L L COLOB id e n tific a tio n of C heck G u a ra n te e C ard c u sto m ers of M idland N ation al
Bank, M in n e ap o lis is a v a ila b le in 60 seconds w ith th is P o la ro id e q u ip m e n t now in use
a t th e b a n k . Color p h o to of th e b a n k c u sto m e r is p r in te d d ire c tly on th e C heck G u a ra n te e
C a rd so m e rc h a n ts m ay v e r if y id e n tity . T h is c a rd also a ffords M id la n d c u sto m e rs an
I n s t a n t M oney C heck in g R e se rv e of $300 to $5,000. I f th e C heck G u a ra n te e C ard is used
w ith o u t th e C heck in g R e se rv e, th e c a rd costs th e cu sto m er ju s t $1.00, o th erw ise th e
color id e n tific a tio n ph o to c a rd is free .
th e N orth w estern N ational B ank bu ild
ing, M inneapolis, have been m ore th a n
doubled w ith the acquisition of an ad
jacen t office suite. R efu rb ish in g and
redecoratin g is n early com pleted in
th e new conference room -private of
fice, em ployee lounge, additional d ra ft
ing room space and enlarged storage
rooms.
The firm specializing in the design
—
of financial buildings, has expanded its
q u a rte rs tw ice since com ing to M inne
apolis in 1965.
* * *
Edw ard G. Silbernagel, G rand R ap
ids, Mich., has joined B an k ers’ A gen
cy, Inc., St. Paul, as a vice president.
Mr. Silbernagel form erly w as an as
sistan t vice presid en t of F orem ost In 4 4 surance Company, G rand Rapids.
J* * *
D en nis B. McGrath has been ap 4 pointed to th e new post of d irector of
ad v ertisin g and public relatio n s for U- -w
Dain, K alm an & Quail, Incorporated,
M inneapolis-based in v estm en t banking -..A.
firm.
Mr. M cGrath joined th e firm in May
and w as form erly public relations ac
count executive for K erk er & Associ
ates, M inneapolis advertisin g and pub r
lic relations agency.
*
* * *
F irst N ational B ank of M inneapolis
has announced th e election of B enja
m in B. Crabtree and Charles L. Mehlhouse as assistan t secretaries in the
equity research division of th e tru sts
and inv estm en t m anagem ent group.
Mr. C rabtree joined F irs t M inneapo
lis in 1965 as a system s analyst in the
operating d ep artm en t and for th e past
year has been a securities analyst.
Yi _
Sr
\ L
MAW YOUR PO STS...
BANKER FRIEND APR0ACHES
MAN) YOUR POSTS !!
{
N o r th w e s te r n Banker, Ju n e , 1969
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Minnesota News
Mr. M e h l h o u s e h a s a d v a n c e d
th ro u g h various positions in th e com
m ercial ban k in g and operatin g divi
sion at th e bank. Since 1966, he has
been a secu rities an aly st in th e tru s t
in v estm en t section.
* * *
H arry C. (Bobby) Piper, Jr., ch air
m an and chief executive officer of P i
per, Jaffray & Hopwood, has been
elected to a th ree-year te rm as a gov
ern o r of th e New
York Stock E x
change.
Mr. P ip er p re
viously served as
an exchange gov
ern o r from May,
1963, to May, 1966.
He also w as a
governor of th e
A s s o c i a t i o n of
Stock E x c h a n g e
h . c. p i p e r , jr .
„
1nr-0
F irm s from 1952
to 1958 and vice p resid en t of th a t o r
ganization in 1958. Mr. P iper, associ
ated w ith th e firm since 1946, becam e
a p a rtn e r in 1950 and ch airm an of th e
directin g p a rtn e rs in Ja n u a ry , 1967.
P ip er, Jaffray & Hopwood, a fullservice secu rities firm, w ill be cele
b ra tin g its 75th an n iv e rsa ry in 1970
and is th e larg est secu rities firm head
q u a rte re d in the u p p er m idw est, w ith
iV p ir Hunts in R rs n rn s itu tv
A R T IS T ’S re n d e rin g of new 1st Am. St. B k. of B ro w n sd ale , w h ich is sc h e d u le d for com
p le tio n S e p te m b e r 1. W a lk w a y s su rro u n d th e colonial sty le s tru c tu re , w h ic h w ill be c a r
p e te d th ro u g h o u t. M a in flo o r‘w ill p ro v id e 3,200 sq u a re fe e t of a re a . D riv e -in , w a lk -u p
a n d a fte r-h o u r d e p o sito ry , as w ell as am ple o ff-stree t p a rk in g , w ill be a v a ila b le to c u s
to m e rs w h e n th e n ew b u ild in g is com pleted.
19 b ranch offices in six m idw estern
states, in addition to a recently opened
office in New York City.
J u lian V. H agb erg
Ju lian V. H agberg, 72, retire d Du
lu th b an k er and state leader, died last
m onth en ro ute hom e from a trip to
Georgia.
Mr. H agberg en tered th e banking
profession in 1915 w hen he joined th e
F irs t N ational Bank, D uluth. He
joined th e D uluth N ational B ank in
1920 as a ssistan t cashier, w as nam ed
a director of th e b ank in 1939 and
presid en t in 1946. He held th a t post
u n til his re tire m e n t in 1964. A fter re
tirem en t, Mr. H agberg w as nam ed
chairm an of the board, re tirin g from
th is post last year.
O R LE Y
RATH
CHET
LIMO
LEN Ì
GRIFFITH
JO H N
Û L T M A N NS
N o r th w e s te r n Banker, Ju n e , 1969
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
58
Minnesota News
BAI
E lects Neu' O fficers
be high enough to accom m odate sm all
tru c k s and tru ck s w ith cam pers.
As p a rt of a long-range construction
program , th e p resen t plans include
provisions for several additional drivein stations, w hich can be added at a
later date.
R en a m ed In su ra n ce D ir e cto r
Clifford C. Sommer, M innesota state
senator and presid en t of th e Security
B ank and T ru st Com pany of Owatonna, has been re-elected to th e board of
directors of th e L u th e ra n M utual Life
In su ran ce Com pany in W averly, Iowa.
He also serves on th e Finance Com
m ittee of th e W averly firm.
N ew P r e sid e n t N am ed
N E W L Y E L E C T E D officers of T w in C ities C h a p te r o f B a n k A d m in is tra tio n I n s t i tu t e a re
show n w ith o u tg o in g P re s. R ic h a rd E . S te v en s, v. p., H ig h la n d P a r k S t. B k. ( l e f t ) . T hey
a re ( le f t to r i g h t) : W. M e rto n D resser, v. p., N o rth w e s te rn N a tl. B k. o f M in n e ap o lisR o b e rt C. A n d e rso n , cash., D ro v e rs S t. B k., So. S t. P a u l, and L o re n H a g e m e y e r, aud., Am!
N a tl. B k .— in co m in g p res., v. p. a n d sec., re sp e c tiv e ly . C h ris t B jo rk , a ssist, gen. a u d .'
F e d e ra l R e se rv e B k. (n o t sh o w n ), w ill se rv e as tre a s .
A p p o in te d at D u lu th
L aw rence H. H a b stritt has been ap
pointed an a ssista n t cashier in th e
com m ercial loan d ep artm en t of N o rth
ern City N ational B ank of D uluth, ac
cording to C. G lenn Rye, president.
P rio r to joining N o rth ern City, Mr.
H a b stritt served for five years as a
b an k exam iner w ith F irs t System
Services, Inc., in M inneapolis. F ro m
1960 to 1964, he w as em ployed b y th e
Zapp N ational B ank in St. Cloud,
Minn.
P r o m o te d at C oon R apids
Mrs. V era A rneson, a ssista n t cashier
a t th e F irs t State B ank of Coon R ap
ids for th e p ast th re e years, has been
prom oted to cashier.
W illm ar B ank
E xp an d s S ervices
Large-scale m otor banking, th e first
in th e W illm ar area, w ill be an ex
panded service of th e B ank of W ill
m ar early this sum m er. In m aking
th is announcem ent, Oscar W. Sm ith,
b an k president, said th a t a m ultiple
drive-in u n it is now u n d er construc
tion a t th e bank.
U tilizing th e existing m anned drivein at th e w est end of th e b ank build
ing, th e auto b an king facility w ill have
th re e rem ote TV units, and custom er
p a rk in g on adjacent p ro p erty w hich
is being leased.
The facilitie’s unique two-level de
sign, plan ned by D ykins-H andford,
Inc., arch itects of M inneapolis, has a
canopied roof and also houses the
pneu m atic tube system from th e re
m ote u n its to th e tellers at th e TV
console inside th e bank. The canopy
for th e TV u n its w ill be at a passenger
car level, w hile th e cover for the
drive-in ad jacent to th e building w ill
ANYONE CAN PROVIDE D ISA B ILITY AND
HOSPITALIZATION PROTECTION . . . THE TRICK IS:
To Do It W e ll
To Pay C laim s The Day You G e t Them
To Keep the C u s to m e r H a p p y !
GIVE US A C H A N C E — READ OUR DIRECT MAILINGS
TO BANKERS
MINNESOTA COMMERCIAL MEN'S ASSOCIATION
FOUNDED IN 7905
2550 Pillsbury Ave. S. Mpls. 55404 Ta. 3-7237
N o rth w e s te rn Banker, Ju n e , 1969
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Donald Stein has been nam ed p resi
dent of th e F irs t State B ank of Spring
Lake P ark , replacing R obert Dickm an.
F o r th e p ast th ree years, Mr. Stein has
served as vice presid en t and cashier of
th e F irs t S tate B ank of Coon Rapids.
Mr. D ickm an resigned from th e
b ank to go into an o th er field of busi
ness.
N A SSB B oard C om p leted
H a rry Bloom, Colorado’s state b ank
com m issioner and new presid en t of
th e N ational A ssociation of S upervi
sors of S tate B anks, announced last
m onth th e ap p ointm ent of tw o atlarge m em bers to th e A ssociation’s
policy-m aking board of d i r e c t o r s .
T hey are:
G. A llen P atterso n , secretary of
banking, P ennsylvania.
R obert P. Briggs, ban k in g com m is
sioner, M ichigan.
Mr. P atterso n , as well, continues to
serve as th e A ssociation’s secretarytre a su re r.
The n ational officers w ere chosen at
th e recen t an n u al m eeting in St. Louis.
In addition to P resid en t Bloom, the
officers are:
Donald H. Sauer, director, d e p a rt
m en t of financial in stitu tio n s, Indiana,
first vice president.
Jam es M. Hall, su p erin ten d en t of
banks, California, second vice p resi
dent.
T he im m ediate p ast p resid en t is
P hilip H e w e s , C onnecticut’s ban k
com m issioner.
The A ssociation’s board of directors,
now fully co n stitu ted as a re su lt of
the appointm ents of Com m issioners
P atterso n and Briggs, w ill hold its
first business m eeting in June. The
date and site have not y e t been deter
m ined.
L s s t w e e k ...
.w e processed over 581,000 transit
items, traded Federal funds with twentye i g h t b an k s , c o n v e r t e d a d e m a n d
deposit accounting system to the c o m
puter, added four participants to our
loan pool, sold five unique m unicipal
b o n d " p u t s " , a n a ly z e d th r e e b o n d
a c c o u n ts , helped seven banks w it h
new o v e rlin e s to ta lin g $ 5 4 2 , 7 6 2 ,
reviewed tw o wills, found a splendid
prospect w h o wants to sell his bank,
made r e s e r v a t i o n s fo r t h r e e h o te l
rooms in the Twin Cities, and lined up
some tickets for a Twins game (which
the Twins lost, darn it!)
What can we do for you next week?
At last c o u n t w e had t h i r t y - n i n e
categories of correspondent bank ser
vices. Surely some of these services
would take care of your needs. Call us.
Phone: 612-221-9521.
First National Bank of Saint Paul
M E M B E R FEDERAL D E P O S IT IN S U R A N C E CO RPO RATIO N
D IV IS I O N I — B A N K S A N D B A N K E R S : Wallace L. Boss: Senior Vice President □ Donald W. Buckman, James T. Gowan, Richard C. Swanberg: Vice Presidents
E. Roger Cunningham, Laurence R. Kennedy, Henry N. Snyder: Assistant Vice Presidents □ Philip M. Broom: Division Assistant □ John F. Mullen: Bond Advisory
Specialist □ Robert F. Donlan, Thomas T. D wight: Trust Advisory Specialists.
N o r th w e s te r n Banker, Ju n e , 1969
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
60
Now, after 106 years, one of
the world’s great banks moves
into a new sixty-story home.
And there are many changes.
The computers, the electronic
calculators, the communication
systems are all the most modern
available to banks and banking.
Even the address is new
One First National Plaza.
But one thing stays the same.
The helpfulness of our people.
At our bank you will always
find people who know how to help
you get what you want. And they
do want to help.
Come visit the new First.
You’ll see why we say helping
you is what we’re all about.
The
First National Bank
o f Chicago
N o r th w e s te r n Banker, Ju n e , 1969
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
61
N o r th w e s te r n Banker, Ju n e , 1969
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
62
*-<
Yr '
4
*
-V4-I
X
<4_
Vf
"That reminds me. D id I tell you about
our participation agreement with Talcott?
Most bankers need no reminder atall. They know that, when
bank policies or other restrictions keep them from saying “ yes,”
Talcott usually turns the trick. Often packaging several assets to create
a collateral base. Always inviting the bank to participate up to
50% in the loan. Other advantages are described fully in
“ Talcott and Banks.” Write for a copy, or call our nearest office
and Talk to the Man from Talcott.
rr '
,-*• r \
4
r-
J A M E S T A L C O T T , IN C . . FOUNDED 1854
Commercial & Industrial Financing * Factoring
820 Northwestern Bank Building, Minneapolis, Minn. 55402 * (612) 339-771 I
Atlanta * Boston * Chicago • Dallas * Detroit • Hartford * Los Angeles * Miami
Minneapolis * Newark • New York * Philadelphia * Phoenix * Puerto Rico * San Francisco
Northwestern Banker, June, 1969
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
63
Sonili
Hnhotu
Ñamo C urtís A. L o rre
A s 1 9 6 9 -7 0 P resid en t
B y BEN H ALLER, JR.
E d ito r
O F F IC E R S of th e S o u th D a k o ta B a n k e rs A sso c ia tio n a re p ic
tu r e d ab o v e, l e f t to r ig h t. S e a te d : R o b e rt P e tsc h o w , p res., C orn
E x c h a n g e B a n k , E lk to n , now im m ed. p a s t p re s., a n d C u rtis A.
Iio v re, p re s., N o rth w e s te rn N a tl., S ioux F a lls , new p res. S ta n d
in g : L e la n d L . S te ele , exec, v.p., F a rm e rs & M e rc h a n ts B a n k ,
H u ro n , 1 st v .p .; O rv ille L. B o n a ck e r, v.p. a n d cash., 1st N a tl.,
S io u x F a lls , 2nd v.p., a n d N e il M iln er, exec, se c y .-trea s., H u ro n .
OUTH DAKOTA b an k ers w ere told
at th e ir 77th an n u al convention
in A berdeen last m onth th a t th ey
w ould do w ell to listen to W illis W.
A lexander, Jr., p resid en t of th e A m er
ican B an k ers A ssociation, w h en he
stresses “th e need for you to be in
volved in th e affairs of y o u r com
m u n ity .”
Speaking before th e second general
session of th e South D akota B ankers
A ssociation Convention, The Hon.
K. A. R andall, ch airm an of th e board
of th e F ed eral D eposit In su ran ce
C orporation, recalled his ow n ban k in g
background w h ich includes m anage
m ent of a sm aller b ank in U tah. R e
ferrin g to Mr. A lexander, w ho w as
recen tly announced as th e new exec
utive vice p resid en t of th e ABA w hen
he concludes h is p re se n t te rm in th e
fall as p resident, Mr. R andall stated,
“W illis is your type of b a n k e r and
m ine—a great leader. I t is necessary
for u s all to be involved, as W illis
urges, in the n e x t 10 y ears to re ta in
a viable ban k in g system .”
Mr. R andall also told th e b an k ers
th ey should recognize th a t “W ashing
ton is th e hub of y o u r business. T h at
is w h ere ru les and reg u latio n s are
m ade in th e halls of Congress th a t
affect y o u r business. T herefore, it is
v ital for every banker to get p e r
sonally involved by being in public
office or being acquainted w ith every
one of y o u r elected officials. You
m u st becom e a responsible, inform ed
S
in te rp re te r of national life and our
econom y to your local com m unity,
and be leaders in those com m unities.”
A ddressing him self to th e excuse
th a t politics w ill h u rt business, Mr.
R andall recalled th a t he staked his
ow n re p u ta tio n and b an k fu tu re on
being cam paign m anager for Senator
W allace B en n ett several elections ago.
The v o ters changed th e county vote
from a 5,000 D em ocrat p lu rality to a
2,500 R epublican p lurality. The Demo
crat cam paign sw itched his account
to Mr. R an d all’s b an k “because I ad
m ire a m an w ho believes enough to
tak e action.”
Mr. R andall em phasized th e vital
necessity of “m aking su re your Con
gressm an u n d erstan d s th e needs of
y o u r bank, th e changing conditions it
faces, and th e services you need to
dispense in th e fu tu re, so th a t he w ill
u n d e rstan d w h y new law s shouldn’t
be enacted to h am strin g b anking.”
Such repressive action, he indicated,
is w h a t leads to static conditions th a t
leave b anking in th e re a r w hen
changes in th e financial com m unity
are needed.
He m ade a brief analysis of the
N ixon A dm inistration, statin g th a t in
th e area of prudence and fiscal
responsibility, Mr. N ixon m u st get
v ery high m arks. “P rio rities and
responsibilities are being placed in
p ro p er o rder,” he said, “and it is
evident th a t w e can’t have a w ar and
a b u tte r and eggs econom y w ith o u t
inflation, and Mr. N ixon is in te n t on
haltin g inflation.
“He rep resen ts a new A dm inistra
tion, try in g to solve problem s, b u t is
faced w ith th e old opposing Congress.
So, it’s up to all of you to be th e in
te rp re te r to your C ongressm en of the
th in k in g of yo u r local com m unities.”
In his in tro d u cto ry rem arks, Mr.
R andall apologized for having arriv ed
late (the program w as rearran g ed to
accom m odate his late arrival) and
said it w as necessitated by a pro
longed, tw o and one-half h o u r ap
pearance before Rep. W rig h t P atm an
th a t m orning in W ashington, since
Mr. P a tm a n ’s H ouse B anking and
C urrency com m ittee w as hearing
testim ony for the last day on the
one-bank holding com pany legislation.
J u s t before Mr. R andall’s appear
ance, new officers w ere elected by the
SDBA. C urtis A. Lovre, presid en t of
N orth w estern N ational Bank, Sioux
Falls, w as elected SDBA presid en t to
succeed R obert Petschow , president,
Corn E xchange Bank, E lkton. Leland
L. Steele, executive vice president,
F a rm e rs and M erchants Bank, H uron,
w as advanced to first vice president.
Orville L. Bonacker, vice p resident
and cashier, F irs t N ational Bank,
Sioux Falls, w as elected second vice
president. Neil M ilner continues as
executive secretary-treasurer.
R obert H. W alrath, vice president
of th e ABA for South Dakota, and
president, F i r s t N a t i o n a l Bank,
N o r th w e s te r n Banker, Ju n e , 1969
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
South Dakota News
L E F T — N e il M iln er, exec, sec.-treas., SD B A , H u ro n ; K . A. R a n d a ll, chm n., F D IC , W a sh in g to n , D. C., a n d C h a rle s S eam an, S outh X
D a k o ta su p t. of b a n k s, P ie rre . C E N T E R — N o rm G u sta fso n , a.c., 1st N a tl. C ity B a n k , N ew Y o rk ; B ill W o h len h au s, a.v.p., N a tl. C ity
B a n k , M in n e ap o lis, a n d R o b e rt E . S chaeffer, c o n su lta n t, B a n k B u ild in g & E q u ip m e n t Corp., S t. L ouis. R IG H T — R o n a ld R. J e n k in s ,
v.p. a n d cash., C om m ercial T&S, M itc h e ll, a n d G ene H a g e n , v.p., S e c u r ity N a tl., S ioux C ity.
W aterto w n , presided a t th e m eeting
of South D akota ABA m em bers.
N am ed to serve on th e ABA n o m in at
ing com m ittee at th e 1969 convention
in H onolulu th is fall w as Mr. Petschow. N am ed as a lte rn a te n o m in at
ing com m ittee m em ber w as R ay Plow
m an, president, F irs t State Bank,
A rm our.
Jam es I. Deam, president, A m erican
S tate B ank, Y ankton, w as chairm an
of th e com m ittee th a t delivered the
14 resolutions to th e convention. I n
cluded w ere th e following:
• S upport for th e dual ban k in g sys
tem and opposing com pulsory m em
b ersh ip in th e F ed eral R eserve Sys
tem .
• S upport for A llen P. Stults,
p resid e n t of A m erican N ational B ank
and T ru st C om pany of Chicago, in
his candidacy for vice presidency of
th e ABA at th e 1970 election.
• S upport for equal tax atio n be
tw een state and n atio n al banks.
• R equest to th e SDBA executive
council and legislative com m ittee to
stu d y one-bank holding com panies
and advise th e ABA W ashington of
fice and South D akota C ongressm en
of th e SDBA m em bership’s opinions.
Leadoff speaker H arold P luim er of
M inneapolis discussed “The F ro n tiers
of Our Tim e.” His em phasis w as on
th e changes th a t have resulted be
cause innovations w ere made, stre ss
ing th a t m an can’t disregard or be
fearful of them , b u t use these changes
to advantage. He listed th e fro n tiers
on a grad ually upsw eeping cu rv e th a t
began a sh arp upsw eep once it hit
the scientific revolution. H is ch art
show ed th em in th is o rder—electri
city, autom obile, flight, scientific re v
olution, DNA, atom ic energy, cyber
netics, astronautics, and m an, the
la tte r w ith a big question m ark.
He said th e explosion of scientific
know ledge is doubling every 15 years,
and is giving us a 10-fold increase
every 50 years. To em phasize this
point, he stated th a t a son of Marco
Polo, if he had lived u n til the 20th
century, w ould n ot have seen as m any
changes as th e son of anyone in the
audience has in his sh o rt lifetim e.
T his d istu rb in g change, he said, is
w h a t leads to college riots, p rim arily
am ong those in social studies and
h u m an ities w ho look back and can’t
cope w ith th e change. In th e fu tu re
he sees 3D television, 200,000 new
products and com puter program m ing
as a req u ired course for high school
g raduation so th ey w ill be able to
“converse” for fu rth e r stu d y and
w ork. He said 10 per cent of all
m oney spent today is going for com
p u te r building or equipm ent.
C harles C. H arding, a form er b an k
er and now in the financial system s
division w ith N ational Cash R egister
Company, D ayton, Ohio, had as his
subject, “The Im age of A utom ation
for Small B anks.” H is p e rtin e n t re
m arks related closely to th e special
autom ation sto ry in last m o n th ’s issue.
L ane Palm er, editor of th e Farm
Journal, P hiladelphia, Pa., talked
about “The C hanging F a rm .” He m et
head-on m any th in g s in ag ricu ltu re
th a t he feels are m yths or at least
“fences” th a t individual farm groups
have bu ilt around th e ir special in te r
ests.
In discussing his publication’s wellknow n farm polls, he described Iowa
as being p re tty m uch of a pivotal
point for farm philosophy, because of
the size of farm ing in d u stry in the
L E F T — A v e ry F ic k , v.p., M a rq u e tte N a tl., M in n e a p o lis; S h e rm a n P a r r o t t , m gr., P o llo ck b ra n c h of C am pbell C o u n ty B a n k ; J o h n R iedlin g e r, cash., C am pbell C o u n ty B a n k , H e rre id ; P a u l R oche, a.v.p., M a rq u e tte N a tl., a n d J a c o b G. H o fe r, p re s., C am pbell C ounty B an k
H e rre id . C E N T E R — S e a te d : B oyd H o p k in s, p res., L iv e S to c k S ta te , A rte s ia n ; M rs. H o p k in s, a n d D w ig h t Bos, U. S. C heck B o o k ’,
Sioux F a lls. S ta n d in g : L o re n A n d erso n , IT. S. C heck B ook, R a p id C ity ; E v e r e tt B row n, a.v.p., a n d D illo n Ross, a.c. b o th w ith
Ü. S. N a tl. B a n k , O m aha. R IG H T — J a y L aR usso, a sst, tre a s., C h a se M a n h a tta n B a n k , N ew Y ork.
N o r th w e s te r n Banker, Ju n e , 1969
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
call Irving trust
I r v in g T r u s t C o m p a n y
ONE W A U STREET NEW YORK
^ 4 C h a r t e r New York Bank
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
South Dakota News
*-<
L E F T — A r th u r H . D avis, pres., M in e rs & M e rc h a n ts B a n k , L ea d , a n d D on Ja c k so n , v.p., I r v in g T ru st, N e w Y ork. C E N T E R — H e rm a n
L e rd a l, pres., M itc h e ll N a tl., M itc h e ll; G eorge D ixon, p res., 1st N a tl., M in n e a p o lis; G eorge T o ft, w ho re c e n tly r e tir e d as pres, of Com
m e rc ia l T&S, M itc h e ll, a n d G eorge H e n ry , v.p., 1st N a tl., M in n e a p o lis. R IG H T — B. C. Solum , v.p., 1 st N a tl., W a te rto w n , E d N ew ell,
v.p., N o rth w e s te rn N a tl., S io u x C ity , la ., a n d D a v id M oore, cash., Y iv a n S ta te .
state and its long-standing leadership.
If one goes each d irection from Iowa,
he said, farm ers tend to becom e m ore
conservative. N ebraska agriculture,
he said, since th e developm ent of irri
gation, has g reatly stabilized.
Mr. P alm er said he told th e N a
tional F a rm e rs U nion leaders in D en
v er recently, w h en th e y w ere com
plaining about co rporate farm ing, th a t
these people w o u ld n ’t be in farm ing
if it w asn ’t profitable, and th a t p er
haps th is w as a m essage for those
w ho w ould “sing th e b lu es” about
farm ing. H e said th e m ain cu lp rit is
the tax laws. C onsideration is given
to so m any o th er segm ents of the
economy, b u t th e problem is tax law s
in relatio n to farm ers. T ax laws, he
said, have created g reat problem s in
connection w ith prices. F a rm e rs don’t
w an t to give u p any of th e ir tax ad
vantages so th a t high prices w ould
prevail.
The farm er, he m aintains, can com
pete again st corporate farm in g if he
w ill ex ert e n te rp rise and initiative.
Tom R. Sm ith, p resid en t of F irs t
N ational B ank in P erry , Iowa, gave
his excellent ideas on “B uilding th e
C om m unity B ank.” Mr. Sm ith is wellknow n th ro u g h o u t th e m idw est for
his fine p resen tatio n on th is subject,
w hich stresses developm ent of a
com petent, en th u siastic staff, dedi
cated personal service to all custom
ers, and extensive p articip atio n in
com m unity affairs, as recom m ended
in an earlier ta lk at th e convention by
Mr. R andall.
C oncluding sp eak er a t th e conven
tion w as C harles R. M eeker, Jr., p resi
den t of th e Miss T een Age A m erica
organization, Dallas, Texas.
The golf to u rn a m e n t drew 94 en
tra n ts on T hursday, despite in te r
m itte n t ra in and contin u in g high
w inds th ro u g h o u t th e day. T he P re si
d en t’s R eception w as held at the
A bderdeen C ountry Club. The annual
banquet and e n te rta in m e n t w as preNorthwestern Banker, June, 7969
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
sented in the A berdeen A rena and
Civic T h eatre in dow ntow n A berdeen.
The hosts at th e F rid ay noon
luncheon for all delegates w ere the
F irs t N ational B anks in W atertow n
and A berdeen, F irs t N ational B ank of
th e Black H ills in R apid City, and
N o rth w estern N ational B ank of Sioux
Falls.— End
A n n o u n c e s P e r s o n n e l S h ifts
C urtis Lovre, p resid en t of N o rth
w estern N ational B ank of Sioux Falls,
announced last m onth th a t expansion
of business in th e B rookings area and
p artic u la rly rapid grow th in tru s t
b u s in e s s th e re
h a s p ro m p te d
th ree i m p o r t a n t
changes in p er
sonnel.
D o n Robinson,
v ic e p r e s i d e n t ,
w h o has b e e n
w ith th e b a n k
s in c e 1946 a n d
m anager of the
B r o o k i n g s office
D. R O B I N S O N
s i n c e 1959, has
been nam ed tru s t officer at B rookings
and w ill handle all of this business
fo rm erly tak en care of by tru s t offi
cers from h ead q u arters in Sioux Falls.
Succeeding him as Brookings m an
ager is Jo h n L asher, w ho has been
w ith N o rth w estern since 1955 and w as
elected in 1963 as vice presid en t and
m anager of th e H u ro n office. The
m anagership at H u ro n has been as-
signed to W illiam T. Larson, w ho has
also been elected vice president. Mr.
L arson joined th e ban k in 1962 and
has been assistan t m anager at H uron
since 1966.
O ther changes m ade by the board of
directors last m onth include; H a rry
B irath, a s s i s t a n t vice president,
Brookings, assigned to head office
b ran ch credit departm ent; Sid Bostic,
B rookings, elected assistan t vice p resi
den t and assistan t m anager; G erald
W ethor, m ain office, elected assistan t
vice p resid en t and assistan t m anager,
Madison; G ary Olson, M adison, elected
assistan t vice presid en t and assistan t
m anager, H u ro n office, and H. Jo h n
Peckham , Jr., elected to m ain office
b u s i n e s s developm ent departm ent,
succeeding David W. A rm strong, w ho
has resigned to join a b ank in Colo
rado.
M arks 2 5 Y ears
The Leola State B ank, Leola, re
cently held an open house to celebrate
its 25th anniversary.
Since th e b an k opened for busi
ness on May 15, 1944, deposits have
grow n to approxim ately $4 m illion.
E lect N ew D irecto r
L ester D ennis of M ellette has been
nam ed to the board of directors of the
F arm ers and M erchants B ank of
A berdeen. Mr. D ennis is a native of
Spink County and has farm ed near
M ellette all his life.
T o J o in M iller Bank
J. L A S H E R
W . T. L A R S O N
Taunce M athiason w ill join th e staff
of th e F irs t N ational Bank, Miller,
Septem ber 1.
Mr. M athiason is c u rre n tly serving
on th e teaching staff of M iller H igh
School, w here he has been em ployed
since the beginning of the 1966-67
school term . He is a g raduate of
N o rth ern State College, w here he w ill
com plete w ork for his m a ste r’s degree
th is sum m er.
AUTOMATIC COIN WRAPPER
5 OLD STYLE COIN WRAPPER
TUBULAR COIN WRAPPER
B KWARTET COIN WRAPPER
A m ou nts and d e n o m in a tio n s a u to m a tic a lly in d ic a te d by
patented " r e d bordered w in d o w s ” . A m o u n ts in w indow s
alw ays in re g is te r. . . e lim in a te s m istakes. A ccom m odates
all coins fro m l c to $1.00.
E specially designed fo r m a chine fillin g . . . a real tim e-saver.
Packed fla t. In s ta n t patented “ Pop O pe n” action w ith fin g e r
tip pressure. D e no m ina tions id e n tifie d by color c o d in g . . . 6
d iffe re n t stan dard colors.
RAINBOW COIN WRAPPER
C olor coded fo r quick, easy id e n tific a tio n . Red fo r pennies . . .
blue fo r nickels . . . green fo r dim es . . . to ind ica te q u a n tity
and d e n o m in a tio n s . . . e lim in a te s m istakes. Tapered edges.
DUZITALL COIN WRAPPER
Extra w ide . . . extra strong. Designed fo r areas w here halves
are w rapped in $20.00 packs . . . “ red bordered w in d o w ” fo r
ease o f id e n tific a tio n . A ccom m odates $20.00 in dollars, $20.00
in halves. Tapered edges.
Basic coin w rap per in extra stro ng k ra ft stock. P rinted in 6
d iffe re n t stan dard colors to d if f e r e n t ia t e d e nom in ation s.
T r ip le d e s ig n a tio n th r o u g h colors, p r in t in g and letters.
Tapered edges.
W raps 4 de n o m in a tio n s in h a lf size packages. A m in ia tu re o f
th e po p u la r “ A u to m a tic W rapper” . . . 25c in pennies, $1.00 in
nickels, $2.50 in dim es, $5.00 in qu arte rs.
7 FEDERAL BILL STRAP
Package con tents cle a rly id e n tifie d on faces and edges by
color coded panels w ith inverted and reverse figu res. Made
o f extra stro ng stock to assure unbroken deliveries. Only pure
d e xtrine g u m m in g used.
8 COLORED BILL STRAP
E ntire stra p is color coded to id e n tify de no m in a tio n . P rinted
a m o u n t appears on to p and b o ttom of package. Extra w ide
fo r m a rking and stam ping. Extra stro ng stock fo r safe de live ry
and storage. Pure dextrine gu m m ing .
S BANDING STRAPS
Ideal fo r pa ckin g currency, d e posit ticke ts, checks, etc. . . . do n o t break
o r de te rio ra te w ith age. Size 10 x \ inches and m ade o f stro ng brown
K ra ft stock w ith gum m ed end fo r ease o f sealing. Packed 1000 to a carton.
SEE
T HE
C.
L.
DOWNEY
Y OUR
D E A L E R
COMPANY
OR
•
S E N D
FOR
FREE
HANNI BAL,
S A M P L E S
M I S S O U R I
DEPT.
N
N o r th w e s te r n Banker, Ju n e , 1969
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
68
South Dakota News
i»ra m i O prai np
»
Hank
.
G RAND O P E N IN G wa s h e ld re c e n tly in th e n ew b a n k b u ild in g o f th e 1st N atl. Bk., L em m on, p ic tu re d above.
H E F irs t N ational B ank of L em
mon held th e grand opening of its
new bank building last m onth.
New featu res of th e building include
a h earth room w ith fireplace, color
television and lounge area, plus com
plete m eeting facilities including k itc h
en; drive-in w indow on th e south of
th e building; new 6,000 square foot
park in g lot at th e east side of th e
stru ctu re; n ig h t depository, and new
safe-deposit area.
A unique featu re of th e new bank
is a b ran d board w hich covers th e en
tire south w all on the m ain level of
th e building and com prises alm ost 600
bran d s of area ran ch ers.
The F irs t N ational h as been in b u si
ness in th e Lem m on com m unity since
1908. Officers at th e b ank include:
Jam es H ow ard, vice president; Dale
Rogers, a ssistan t vice president; W. E.
Coats, assistan t vice p resid en t and
m anager of th e in su ran ce departm ent;
E. C. Svihovee, cashier; Gerald H intz,
a ssistan t cashier and m anager, timepay departm en t, and P hil Blank, ag
rep resen tativ e.
T
Nam e New
Bonds Chairmen
D uring the recen t South D akota
B ankers C onvention tw o new v olun
teer county chairm en w ere added to
the U nited S tates Savings Bonds Com
m ittee. State C hairm an M. J. Colton,
executive vice p resid en t of the Na
tional B ank of South Dakota, Sioux
Falls, presen ted an ap p o in tm en t cer
tificate to F ran cis Card, president,
Dewey C ounty B ank, w ho w ill serve
as Dewey C ounty Savings Bonds
chairm an.
R egional Savings Bonds C oordinator
A1 K uszm aul, executive vice president,
F irs t N ational Bank, P ierre, presen ted
th e certificate of appo in tm en t for the
N o r th w e s te r n Banker. Ju n e , 1969
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
L ym an C ounty ch airm an sh ip to M yron
Nelson, vice president and m anager,
N ational B ank of South Dakota,
Presho.
Buy M iltona Bank
C ontrolling in te re st in the M iltona
State B ank at M iltona has been sold
to R ichard A. F ait, Canton, S. D., pub
lic accountant, and C. L. A nderson,
Sioux Falls, S. D.. attorney.
The tw o m en purchased all of the
shares in the bank except those
owned by directors, and it is expected
th a t a new m anaging officer w ill be
announced in the near future.
Mr. F a it and Mr. A nderson also
have oth er b anking in terests in the
state.
A m erican E xpress Starts
2 New Cheque Services
A m erican E x press Com pany an
nounced tw o new services last m onth.
The first is “R efund 365” and the sec
ond is “T ravelers Cheque-by-Mail.”
W ith “R efund 365,” if a custom er
loses his cheques on a w eekend or
holiday w hen every th in g is closed, he
can call W estern U nion O perator 25.
The o perator w ill give him a special
New York num ber w hich he can call
from an y place in the U. S. for only
10 cents. The special num ber w ill
connect him directly w ith the A m eri
can E x p ress In sp ecto r’s Office in New
York.
An A m erican E xpress Inspector w ill
v erify th e claim, give th e custom er
the address of the n earest W estern
U nion office and im m ediately call th a t
office to arran g e an em ergency refund.
The special “R efund 365” phones in
New York w ill be m anned from 6 a.m.
to 8 p.m., seven days a w eek—365 days
a year.
“T ravelers Cheques-by-M ail” is a
new service being offered by m ore
th a n 1,400 banks nationw ide at the
s ta rt of th e 1969 high trta v e l season.
It is designed m ainly for a b a n k ’s reg
u lar checking account custom ers.
The innovation enables a bank to
sell trav elers cheques w ith o u t re q u ir
ing custom ers to come in personally.
The cheques w ill be delivered by m ail
w hen a custom er sends his b an k a
sim ple form accom panied by a check
draw n against his account.
A m erican E x p ress said its new sys
tem is designed to p erm it banks to
gain ex tra revenue, and to save on
m anpow er as well. It is also a new,
convenient w ay to prom ote “H is and
H e r” cheque sales to husbands and
wives. T his can be done easily by
sending sep arately filled in order
form s w ith a single check to cover the
total am ount.
A special featu re of the system en
ables banks to tak e advance orders
and m ake deliveries on dates specified
by th e ir custom ers. T his encourages
custom ers to plan ahead and avoid a
last-m inute dash to th e b ank ju st be
fore dep artin g on a trip.
Custom er applications for cheques
come to the b ank th ro u g h ord in ary
mail, w hile deliveries to custom ers
are m ade by certified m ail—re tu rn re
ceipt requested.
B anks w ill m ake a 75-cent delivery
charge for each tran sactio n , regardless
of th e am ount purchased. A bout 60
cents of th is rep resen ts expense for
postage and handling, leaving about 15
cents as ex tra revenue to th e bank, in
addition to its reg u lar 66% p er cent
of the commission.
M arketing the new service entails
no cost to banks. P rom otional m ate
rial is supplied by A m erican E xpress
w ith o u t charge.
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N E W O F F IC E R S — S e a te d a re 1st V .P .
R o b e rt V. W ells, p res., S e c u rity S t. B k.,
R obinson, a n d P re s. A1 K . Sim pson, p re s.,
M e rc h a n ts N a tl. B k. a n d T r. Co., F a rg o .
S ta n d in g a re T rea s. T heo W . S e tte , pres.,
S t. B k. of B u rle ig h Co. T r. Co., B ism a rc k ;
2nd V .P. T ed A. Solheim , p res., A m e ric an
St. B k., M in o t, a n d W illia m J . D a n er, who
w as re -e lec ted s e c re ta ry a n d g e n e ra l coun
sel.
A I I Í . Simpson H eads
N orth D akota H ankers
By MALCOLM K . FREELAND
‘
P u b lis h e r
BANK robbery isn 't norm ally
scheduled to coincide w ith a
b a n k e rs’ convention, b u t it seem ed to
be a t the 84th an n u al convention of
th e N orth D akota B an k ers Association
last m onth. Im m ediately preceding
th e s ta rt of th e reg istratio n , th e drivein facility of th e V alley B ank in G rand
F o rk s w as held up.
The u n fo rtu n a te ev en t spark ed ad
ditional in te re st in th e opening ad
dress on th e “B ank P ro tectio n Act and
R egulation P ” by Roger B W est, su
p ervising exam iner of th e F ed eral De
A
posit In su ran ce C orporation, M inne
apolis. (Valley B ank m u st have re
ceived an advance copy. The gunm an
w as caught ju st tw o and one-half
A1 K. Simpson, president, M er
chan ts N ational B ank and T ru st Comolis N ational B ank and T ru st Com
pany, Fargo, m oved up from first vice
p resid en t to presid en t of the Associa
tion. E lected to assist Mr. Sim pson
were: F irs t vice president, R obert V.
W ells, president, Security State Bank,
Robinson; second vice president, Ted
Solheim, president, A m erican State
-*
*
v
Bank, Minot, and secretary-general r V
counsel, W illiam J. D aner. E d w ard L.
Olson, senior vice president, F irs t N a
tional B ank in G rand F orks, is the
re tirin g president. Theo. W. Sette,
president, State B ank of B urleigh
County T ru st Company, B ism arck, is
th e new tre a su re r, replacing A. Ned ■r—
M ayer, president, The D akota N ational
Bank, Bism arck.
W ell-know n g o vernm ent l e a d e r s
occupied th e key speaker role. In
addition to Roger B. W est of the
FDIC, Jo h n C. Kim ball, so u th east
A sian ex p ert w ith th e U. S. State De
partm ent; U. S. Senator Q uentin B u r
dick, and U. S. R epresentative Thom as
K leppe addressed delegates.
Bank
P r o te c tio n
Mr. W est review ed the highlights
of the B ank P rotection Act, rem inding
ban k ers th a t th ere are th ree basic re
quirem ents: (1) a lighting system ca
pable of illum inating th e vault, (2)
tam p er-resistan t locks on o u t s i d e
r- 4
t'
4* X
S O U T H M E E T S N O R T H — N ew N D B A P re s. A l K . S im pson is show n w ith C u rtis A. L o v re, p res., S o u th D a k o ta B a n k e rs A ssn., a n d
p res., N o rth w e s te rn N a tl. B k., Sioux F a lls. L E F T C E N T E R — R o b e rt L. B a rste d , v.p., F ir s t S t. B k., H a rv e y , a n d J o h n E . R aym ond,
a.v.p., F i r s t N a tl. B k., S t. P a u l. R IG H T C E N T E R — P re s. E d w a rd L. O lson p re sid in g a t 84tli c o n v en tio n . R IG H T — T he H o n o ra b le
T hom as K leppe, U. S. re p r. fro m S o u th D a k o ta .
N o r th w e s te r n Banker, Ju n e , 1969
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
f
North Dakota News
71
L E F T — T he H o n o ra b le Q uentin B urdick, IT. S. S e n a to r fro m N o rth D a k o ta . C E N T E R — N ew N D B A P re s. A1 K . Sim pson w ith J o h n
C. K im b a ll of th e U. S. S ta te D ep t. R IG H T — Secy. W illia m J . D anerpresents door p rize to C h arles Sw enson, a.c., N o rth w o o d S t. B k.
doors, and (3) an alarm system or o th
er device capable on giving notifica
tion of a b u rg lary . He also review ed
th e reg u latio n s concerning adoption of
procedures.
A s ia n
P o lic y
Special in te re st w as show n in th e
talk given by Jo h n Kim ball, rep u ted
to be th e fo u rth -ran k in g m an in th e
U. S. S tate D epartm ent. Mr. K im ball
rem inded b an k ers th a t th e re are no
sim ple solutions in establishing fo r
eign policy. He said th a t th e re have
been differences of opinion betw een
U. S. and A sian leaders on bom bing
policy and diplom atic tactics — b u t
A sian leaders do not question U. S.
com m itm ents in so u th east Asia.
B a n k ru p tc y A c t
Senator B urdick keyed his ta lk to
th e necessity for u p d atin g th e F ed eral
B an k ru p tcy Act, w hich w as originally
passed in 1898. He says th a t it has
been am ended some 90 tim es and th a t
th e first (and last) m ajor revision w as
m ade in 1938. The advent of credit
cards and o th er form s of new credit
tools m ake it m an d ato ry to u p d ate th e
b a n k ru p tc y regulations, according to
Senator B urdick. He says th a t over
five m illion people are involved in
b an k ru p tc y cases each year, and 92
per cent of th e to tal b an k ru p tcies are
on a personal basis. He expressed th e
need for increased credit counseling
and consum er education. R eferrin g to
a stud y c u rre n tly being conducted by
th e B rookings In stitu te , he said th a t
th e findings w ill be available in early
1970. He is con tin u in g to introduce
legislation for th e estab lish m en t of a
com m ission to study revisions for the
b an k ru p tc y act.
W a s h in g t o n Scene
R ep resen tativ e K leppe elaborated on
th e A d m in istratio n ’s fight against infla
tion. He charged th a t th e U nited
States has been suffering from “fiscal
m a ln u tritio n .” He predicted th a t the
su rta x w ill continue on th e basis of
10 p er cent for th e balance of 1969 and
th en be reduced to 5 per cent for the
first six m onths of 1970. C ancellation
of th e 7 per cent tax credit is a cer
tain ty , according to R epresentative
Kleppe.
T u rn in g to the broad subject of tax
reform , R epresentative K leppe said
th a t the following m easures are being
considered by th e House W ays and
M eans Committee: (1) tax atio n of in
come received by foundations, (2)
closing of loopholes for people in the
“m illion dollar incom e b rack et,” (3)
elim ination of incom e tax for 2,000,000
low incom e taxpayers, (4) a change in
th e oil depletion allowance, (5) a
change in th e capital gains stru c tu re
by possible extension of tim e from
m inim um of six m onths to one year,
and (6) a tig h te r req u irem en t on ab
sentee ow ners of farm s in offsetting
farm losses against other income.
Mr. K leppe touched on the subject
of th e rem oval of Abe F o rtas from the
U. S. Suprem e Court. He suggested
th a t th is move m ay be th e first in a
series of steps to clean house in W ash
ington. F indings on A ssociate Justice
Douglas m ay be equally bad, accord
ing to R epresentative Kleppe.
C o n c lu s io n
SDBA P resid en t E dw ard L. Olson
concluded the m eeting by review ing
th e 1969 legislative y ear in w hich
over 75 bills affecting banking w ere
covered. He rem inded delegates th a t
although a univ ersal credit bill did
not come up th is year, it is bound to
come up in the future.
The A ssociation c u rre n tly has every
one of th e 168 banks in N o rth Da
kota as m em bers. N ext y ear th e con
vention is scheduled for Minot. Dele
gates to th e ABA th is fall w ill be ABA
State Vice P resid en t G ordon W eber,
president, F a rm e rs State Bank, Lis
bon, and A1 Simpson, SDBA president
and m em ber of th e ABA nom inating
com m ittee.
New President Named
Clayton B. Schm idt has been nam ed
president and cashier of th e L iberty
N ational B ank and T ru st Company,
D ic k in s o n . H e
succeeds Eugene
Oakland, w ho ref
I
signed to join a
group founding a
new bank in B ill
ings.
Mr. Schm idt, a
native of New Sa
lem, N. D., started
h is c a r e e r in
ban k in g w ith the
C. B. S C H M ID T
F ir s t N a tio n a l
Bank, D ickinson and Belfield. In 1940,
he joined the F irst N ational Bank, Bis
m arck, and w as appointed assistan t
cashier in 1955. He tra n sfe rre d to th e
W ahpeton N ational B ank in 1960 as
vice presid en t and in 1964 becam e as
sociated w ith the M cIntosh County
B ank at Ashley, w here he w as execu
tive vice president.
Sells Leeds Bank
Mrs. A rne A. G regor has announced
th e sale of the F arm ers State B ank of
Leeds to V irgil L. Hegeholz of Fargo,
N. D., and Dale Streyley of E nderlin.
Both m en are experienced bankers.
Mr. H egeholz is the 1964-65 p ast presi
dent of th e N orth D akota B ankers
Association, and Mr. Streyley is cu r
re n tly vice presid en t of th e Peoples
and E n d erlin State Bank.
N o r th w e s te r n Banker, Ju n e , 1969
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
72
A sense of clear communication
aids your changes
under "Truth In Lending.”
T R U T H IN L E N D IN G , or Fed- I understanding and com m unica
eral Reserve Regulation Z, goes
tion o f this change by all will
into effect July 1, 1969. Designed
mean a smoother change.
to offer fu ll disclosure o f credit
costs to borrowers, the regulation
Most men need two women: a secre
includes all real estate credit transtary to take everything doxvn and a
a c t io n s f o r a n y a m o u n t , a n d
personal, fam ily, household or wife to pick everything np.
— Farmers’ Almanac
agricultural credit under $2 5,000.
H ence, all custom er com m unica
tion is changed— from your forms
to y o u r a d v e r t i s i n g . A n d , o f
course, changes m ust occur.
«ES»
A nd w hat o f com m unication to
your employees? D o they under
stand w hat T ru th In Lending is
all about? Especially those w ho
don ’t work in credit. T hey need
to know how to refer customers
to credit in the proper w ay. A nd,
w hat they mean.
If y o u ’re running into u nexpect
ed problems — whether in your
advertising programs, the clarity
o f your form s, educating your
employees or just wish to see sam
ples o f our m aterial— just drop
us a line. Q uite possibly we have
some inform ation or have run into
a similar experience and could
help. Remember — a thorough
N o r th w e s te r n Banker, Ju n e , 1969
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
M A S T E R C H A R G E starts its
consum er campaign early in July.
A fter a very successful merchant
cam paign resulting in close to
5,000 signed merchants in C olo
rado, W yom ing, Montana and
N e w M exico, Master Charge will
com m ence the largest consumer
c a m p a i g n ever in the R o c k y
M ountain region.
The thrust o f the consumer pro
gram is to be a w ell-controlled
m ailing to 400,000 families who
are customers o f the 140 banks in
the Master Charge system. This
m ailing w ill represent 700,000
cards. The D enver U.S. N ational
wishes the very best of luck to all
participating banks during this
exciting period.
A friend is a person ivho knocks be
fore he enters, not after he has taken
his departure. — Farmers’ Almanac
4M
P E R S O N N E L P O L IC IE S grow
more im portant as every bank ex
pands. Es pe c i al l y for smaller
banks. As a bank expands, its
"divisions of labor” should become
more defined. This is good — not
only for the smooth internal flow
o f bank operations — but to gen
erate interest for veteran em ploy
ees as well as new ones. Here are
some points to take into considera
tion regarding employee policies:
1. Job Descriptions
2. Performance Evaluations
3. Salary Guidelines
4. General Personnel Policy
Statements
5. Vacation Policy
6. Benefit Programs
W hen bank policies and objec
tiv e s— whether customer or em
p loyee— are vague or ill-defined,
it can show in em ployee relation
ships and the efficiency o f your
internal flow. A t D enver U . S.
N ational we w ould be glad to dis
cuss any personnel problems you
foresee or now have. Or perhaps
review any o f your existing pro
grams. Let us know if we can be
o f some help.
A fad is something that goes in one
era and out the other.
— Fanners’ Almanac
DENVER U.S.
"
that’s the bank for my money"
DENVER U. S. CENTER • DENVER, COLORADO 8 0 2 1 7
«4.
T- 3.
73
The Colorado B ankers Associ
atio n ’s annual convention w as
being held in Colorado Springs
as th is issue w as being printed.
A re p o rt on the convention will
be published in a later issue.
C t ilo r a d o
X e w s
D. E. SCOTT
President
Colorado Bankers Association
Steam boat Springs
- > Re-enters D enver Banking
S tew art CosgrifT has re-entered Den' * v er ban k in g as a d irector and ch a ir
m an of th e executive com m ittee of th e
Colorado State B ank.
,^
Mr. CosgrifT, a 1924 g rad u ate of the
U n iv ersity of Colorado, began his
- ban k in g career in Salt Lake City. He
also has served as vice president,
- - presid en t and chief executive officer
of th e D enver N ational B ank, and
ch airm an and chief executive officer
of th e D enver U. S. N ational Bank. He
joined th e F irs t W estern B ank and
T ru s t Com pany, Los Angeles, in 1960
as senior vice p resid en t and a direcv tor. L a te r he w as vice ch airm an of
th e board, p resid en t and chief execu> ' tive officer. In 1966, he becam e c h a ir
m an of th e executive com m ittee and
served in th a t capacity u n til re tirin g
in Ja n u a ry .
Prom otes Five
*>
F ive officers of th e G u aran ty B ank
and T ru st Com pany, D enver, have
been prom oted from a ssista n t cashiers
to a ssista n t vice presidents. T hey are:
A lverize J. B rin, C arrold E. B urns,
Miss B. L aR ue O rullian, R ichard C.
W illiam s and O rville C. W instead.
v * Form er Bank President
> Given P rison Term
The fo rm er p resid en t of th e defunct
Hom e In d u stria l B ank of A urora has
^ < been sentenced to a five-year prison
term a fte r being convicted of m ail
fraud. F ra n k A. Blosser, now a real
estate developer in F lorida, w as sen► tenced for convictions stem m ing from
the collapse of th e b ank n early five
> * y ears ago.
Purchase B oulder Bank
P u rch ase of controlling in te re st in
th e S ecurity B ank of B oulder by H.
Lee S turgeon has been rep o rted to
Colorado B ank C om m issioner H a rry
Bloom. Selling th e b an k w as R obert
W ekesser, Lincoln, Nebr., w ho also
ow ns o th er b an ks in N ebraska. Mr.
* W ekesser had been serv in g as p resi
den t of th e B oulder bank.
*
Mr. S turgeon is a form er d irector
and p resid en t of th e Rocky F o rd Na+ tion al B ank. He m oved to B oulder
several m onths ago and becam e vice
p resid en t of the N ational State Bank.
He later w as engaged in a dispute for
stock control of th e N ational State
and u ltim ately sold his in te re st in the
bank.
First Quarter Assets
F irs t N ational B ancorporation, Inc.,
w hich becam e a registered b ank hold
ing com pany last October, w ound up
th e first q u a rte r of 1969 w ith to tal as
sets of $586,194,454. Com bined assets
of the B ancorporation banks a year
ago w ere $541,582,248, m aking this
y e a r’s total m ore th an $44.6 m illion
higher.
O perating earnings w ere $1,284,892,
equal to 86 cents per share, com pared
to 70 cents p er share for th e sam e pe
riod a year ago. D eposits of the four
b anks at th e end of the q u a rte r stood
at $511,344,975, a gain of m ore th an
$30.98 m illion in th e year.
Join Golden Bank
Two m en have been added to the
staff of the Golden State Bank, accord
ing to A rch J. Cueny, president. T hey
are Lew is O. Sm ith of Golden and Dan
L. S hort of Springfield, Mo.
Mr. Sm ith w as em ployed a t th e Con
tin e n tal N ational B ank in Englewood,
Colo., before joining the Golden Bank.
Mr. Short, nam ed a ssistan t cashier at
th e bank, has had nine y ears of b an k
ing experience w ith th e C ornerstone
B ank, th e State B ank of Noel and the
E m pire B ank of Springfield, Mo.
M arch, before th e A pril 15 deadline for
p aying incom e taxes.
D espite th e later date, th e April 30
deposit total w as alm ost $238.7 m illion
ahead of the sp rin g 1968 total and
$402.26 m illion m ore th a n tw o y ears
earlier.
C ontinuing as th e largest u n it bank
in the R ocky M ountain W est is th e
F irs t N ational B ank of Denver. Its
m ost recent total of $495,091,023 w as
alm ost $30 m illion h igher th a n in
M arch.
Retires from D enver Bank
Max Sherm an, w ho joined th e A m er
ican N ational Bank, Denver, at th e age
of 15 as an office boy, re tire d last
m onth after 50 y ears on th e job. He
retired as an a ssistan t vice presid en t
to th e operations departm ent.
Mr. Sherm an had been w ith th e
b an k longer th a n anyone else except
Adolph K unsm iller, board chairm an.
Given W orld Trade Award
H om er J. Livingston, re tire d ch air
m an of The F irs t N ational B ank of
Chicago, received th e an n n u al aw ard
of th e M ississippi Valley W orld T rade
Council in cerem onies clim axing th e
Council’s 24th annual conference in
New O rleans last m onth.
D enver Banks
Set D ep osit R ecord
M oney on deposit in th e 53 com m er
cial b anks in D enver and its suburbs
as of the close of business on A pril 30
stood at $2,230,332,995.
A bank-by-bank survey show ed th a t
n early every b ank in the area had
larg er deposit totals th a n th ey did on
a com parable date a year earlier, al
th o u g h th e total w as dow n from the
1968 year-end all-time record.
The m ost recen t “bank call” is one
of th e latest ever issued for th e first
p a rt of any year. The sp rin g b ank
calls for th e tw o y ears p rior to 1969
w ere for the last banking day of
H om er J . L iv in g s to n (c e n te r) re ce iv e s
M ississip p i V a lle y W o rld T ra d e C ouncil
a w a rd fro m C o n g ressm an E d w in W . E d
w a rd s ( le f t) a n d J a m e s E. F itz m o rris, J r .
( r ig h t) , a w a rd c h a irm a n fo r th e C ouncil’s
2 4th a n n u a l c o n fere n ce a t N ew O rleans.
The aw ard is presented each year
to a m an w hose contributions to th e
advancem ent of w orld trad e have sin
gled him out for recognition by th e
conference of im port-export rep re se n t
atives.
N o r th w e s te r n Banker, Ju n e , 1969
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
74
A
f-
H
M . E. F IS H E R
R. S. A L L E N
F. B U C H E N R O T H
E . J. H A IN E S
R. G U F F E Y
J. W . PEA RSO N
W y omini/ iSanher.s A ssaeiatian
Hist Annual t'onmnthtn
Jackson Lake Lodge
June 1 2 -1 4 ,
r I ''H EM E of th e 61st an n u al convention of th e W yom ing
B ankers A ssociation th is m onth w ill be “A Look to
th e F u tu re .” The convention w ill be held again at Jackson Lake Lodge at Jackson Hole, Ju n e 12-14.
The “Look at th e F u tu r e ” w ill include filmed highlights
of Apollo m anned space flights, and talk s by a young
W yom ing leader, an in d u stria list and a C ongressm an.
Max E. F ish er, p resid en t of th e association and p resi
dent, F irs t N ational B ank of L aram ie, w ill preside a t th e
business m eeting. S erving as vice p resid en t th is year
and scheduled to m ove u p to th e presidency is R. Sam
Allen, p resid en t of the Shoshone-F irst N ational B ank in
Cody. T re a su re r is F elix B uchenroth, Jr., p resid en t of
Jackson State B ank in Jackson. E. J. “W oody” H aines,
executive vice p resid en t of F irs t N ational B ank in
Laram ie, is secretary.
In his notice to m em bers of th e m eeting, Mr. H aines
noted a different form at in the program . A new attractio n
this y ea r w ill be a F ish in g Derby, in addition to the
m en ’s and w om en’s golf to u rn a m e n t at Jack so n Hole
Golf Club. The com plete program follows:
THURSDAY, JUNE
12
A.M.
9:30
F o u rth A nnual W BA Golf T o u rn am en t—Jackson
Hole Golf Club.
8:30 to 4:00 p.m. F irs t A nnual F ish in g D erby—Colter Bay.
P.M.
5:30 Get A cquainted Social H o u r—Lodge Pool Side.
7:00 Indoor Picnic—Lodge C onvention A rea—Casual
Clothes.
F R ID A Y , J U N E
A.M.
9:30
13
Call to Order.
P re se n ta tio n of Colors—Jackson Boy Scouts.
Invocation—Rev. P hilip Zim m ers, P astor, St.
Jo h n ’s E piscopal C hurch, Jackson, W yom ing.
A ddress of W elcom e—C onrad Schw iering, N ation
ally F am ous Jackson Hole A rtist, Jackson, Wyo.
“W ashington R ep o rt—Today and T om orrow ”—
H onorable Jo h n W old, U nited States C ongressm an,
S tate of W yom ing.
P re sid e n t’s A ddress and A nnual R eport—Max E.
F ish er, P resident, F irs t N ational B ank, Laram ie.
10:45 Coffee Break.
“C ount Down on T ru th in L ending”—R oger Guffey,
G eneral Counsel, F ed eral R eserve B ank, K ansas
City, M issouri.
N o r th w e s te r n Banker, Ju n e , 1969
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
1969
“ ’69 H igh School G raduate’s View to F u tu re ”—
Jo h n S tew art, Jr., Eagle Scout Region 8 BSA Re
p ort of th e President, B righton, Colorado.
Noon
12:00 L adies’ L uncheon—P resen tatio n of W om en’s Golf
aw ards
E n tertain m en t: “W orld Cam pus Afloat” by Jane
Bond & Sue Fisher.
P.M.
12:30 M en’s L uncheon—P resen tatio n of M en’s Golf and
F ish in g A wards.
P.M.
1:30 Reconvene.
“Econom ic D evelopm ent and W yom ing’s Q uality
E n v iro n m en t”—Jo h n C. W illiam s, A ssistant Chief
of In d u strial D evelopm ent, W yom ing N atu ral Re
sources Board, Cheyenne, Wyo.
“Apollo Up to D ate”—N orm an B. W atten, Senior
R esearch E ngineer, Apollo Space Division, N orth
A m erican Rockwell, Downey, Calif.
R eport of E xecutive Council, A.B.A. — Jack W.
Pearson, president, F irs t N ational Bank, Lovell.
R esolutions Com m ittee R eport—H arm on H. W att,
president, F irs t N ational Bank, R iverton.
N om inations Com m ittee R eport—Max C. Robinson,
executive vice president, S tar Valley State Bank,
Afton.
E lection of Officers:
A m erican B ankers Association.
W yom ing B ankers A ssociation.
4:30 A djournm ent.
5:30 Social H our—Sun Deck.
7:00 61st A nnual B anquet.
In stallatio n of Officers.
E n te rta in m e n t by the U. S. A rm y Soldiers of Song,
W ashington, D. C.
9:00 Dancing.
S a tu r d a y , J u n e 14
A.M.
8:30
9:30
11:00
Peeps (P ast P resid en ts) B reakfast.
Call to Order.
E xecutive Council Session—Open to all reg istran ts.
R eport of W illiam A. Sm ith, Legal Counsel, F irs t
N ational Bank, R iverton, concerning problem s in
volved in dual ow nership of tim e certificates.
O ther E xecutive Council and A ssociation business.
K V.
A djournm ent.— E n d .
75
C R E A T IV E T/UhIU
For First Of Tulsa Correspondents . . .
First Specialist Dick Wagner
Senior Vice President In Charge Of Division H
(Correspondent Banks). Your Contact
For Full Service Thinking.
D ick W agner is a resourceful pro
fessional banker. H e’s the head of a
First team of banking specialists w ho
travel thousands of miles each m onth.
He gathers facts, exchanges ideas,
takes a first-hand look at correspond
ent problems . . . correspondent needs.
The insight he gains supplies direc
tio n to ou r la rg e sta ff of cr e a tiv e
specialists . . . experts in every phase of
banking procedure. These men are
devoted to the developm ent of original
programs, unique services and efficient
problem -solving m ethods to benefit
correspondents and their customers.
W hen you w ant full service thinking,
contact D ick W agner — a creative head
full of “capital ideas’.' Call 918 587-2141.
you deserveUlOrC... rhink First!
THE FIRST NATIONAL BANK
& TRUST COMPANY of TULSA
MEMBER
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
FEDERAL
DEPOSIT
INSURANCE
CORPORATION
___ !.
N o r th w e s te r n Banker, J u n e , 1969
76
C olorado N e w s
Y «ut W ill See Them ni Un»
U1st Ann nul
Wi/«ntiitt
H E follow ing m etro p o litan b a n k
ers, service and equipm ent dealers
have indicated th e y w ill be atten d in g
th e W yom ing B ankers A ssociation
C onvention in Jackson, Ju n e 12-14:
T
second
C h ic a g o :
M a n u fa c tu r e r s H a n o v e r T r u s t C o m
p a n y : C arl G. Carlson, assistan t vice
T ru s t
vice president.
N a t io n a l
B ank
of
R aym ond V. Dieball, a ssista n t vice
presiden t.
Denver
C e n tra l B a n k and T ru s t C o m p an y:
Don E ch term ey er, vice president, and
Jo h n E dm iston, assistan t vice p re si
dent.
C o lo ra d o N a t io n a l B a n k : B ruce M.
Rockwell, senior vice president, and
W. J. Flem ing, a ssistan t vice p re si
dent.
D e n v e r U n it e d S ta te s N a t io n a l B a n k :
Don F e rre l, vice president, and P aul
C hristensen, loan officer.
F i r s t N a t io n a l B a n k o f D e n v e r : P h il
lip J. Hogue, vice president, and L.
W illiam M arrin, assistan t cashier.
C it y
pany:
K a n s a s C it y
N a t io n a l B a n k &
N e w Y o rk
C h as e M a n h a t t a n B a n k :
W illiam J.
C onnellan, second vice president, and
wife.
F i r s t N a t io n a l C it y B a n k : R obert
Stokes, assistan t cashier.
C h ic a g o
A m e r ic a n N a t io n a l B a n k &
C o m p a n y : W illiam B. A ldrich,
F ir s t
w ick and H ow ard Nielsen, vice p resi
dents.
T ru s t Com
Jack E. Beets, a ssistan t vice
president.
F i r s t N a t io n a l B a n k & T r u s t C o m
p a n y : A. S. Chaves and Roger L. Cun
ningham .
Los A n g e le s
U n it e d C a lif o r n ia B a n k :
J. C. Strivers and Jam es H. Heaon, vice p resi
dents.
O m aha
F i r s t N a t io n a l B a n k o f O m a h a :
Don
R. O strand, vice president.
S to c k y a rd s N a t io n a l B a n k :
D. J.
M urphy, president; C. W. Means, sen
ior vice presid en t, and F. J. Sibert,
vice president.
T h e O m a h a N a t io n a l B a n k : R. E.
Johnson, senior vice president, and
F red Douglas, vice president.
U n ite d S ta te s N a t io n a l B a n k : E d L y
m an, president, president; Ja y Borde-
president.
S a n F ra n c is c o
B a n k o f A m e r ic a : B. G.
F ran sted ,
vice president.
H ans J. L und,
vice president, and wife.
W e lls
F arg o B an k:
T u ls a
F i r s t N a t io n a l B a n k &
T ru s t C om
p a n y : Dick W ag n er.
B a n k E q u ip m e n t a n d O t h e r F ir m s
D ie b o ld , In c .: R udy King.
M o r tg a g e G u a r a n t y In s u r a n c e
C o r
poration: C harles W. M orris.
M o s ie r S a fe C o m p a n y : Carl Strickrott.
N a t io n a l
C om pany:
F id e l i t y
L ife
In s u r a n c e
H al Coulson and J e rry El
liott.
D eposit Totals fo r All
W yom ing Banks Are Listed
D eposits in W yom ing’s 70 com m er
cial b an k s m oved n earer to th e m agi
cal th ree-q u arter billion m ark at th e
close of th e fo u rth q u a rte r ending
D ecem ber 30, 1968, according to fig
u res released by State E x am iner
D w ight D. Bonham .
W yom ing banks rep o rted $703,044,566 of deposits at th e 1968 fo u rth q u a r
te r closing for a $76.5 m illion increase
over th e $638,514,680 to tal at th e end
of 1967.
F irs t N ational of Casper continued
to outdistance its n earest rival, W y
om ing N ational, also of Casper, as the
financial leader am ong state banking
houses. F irs t N ational deposits soared
to $64.2 m illion at the year end of
1968 com pared to $63.4 m illion re
ported by W yom ing N ational to hold
a $1.8 m illion deposit m argin.
C asper’s five banks m aintained th e ir
dom inant role in the sta te ’s financial
picture. The five banks held $136.2
m illion deposits to retain approxim ately 20 per cent of deposited m onies
restin g in state banks.
W allace E. Pearson, ch airm an of the
board of th e F irs t N ational B ank of
Lovell, has died at the age of 81, fol
low ing a h e a rt attack.
Mr. P earson had been a resident of
Lovell for 51 y ears and w as a formerofficer of the A m erican B ankers Asso
ciation and had served as presid en t of
th e W yom ing B ankers Association.
He joined th e Lovell b ank in 1919
and, afte r serving m any y ears as p resi
dent, w as succeeded as president by
his son, John, about six y ears ago.
A
^
-
^
A.
^
<
E lected Officers
o f Bank Group
Dom inick J. B ettas, a ssistan t cashier
of th e F irs t N ational B ank of Kem- *--<
m erer, has been elected presid en t of
th e B ank A d m inistration In stitu te , T
W yom ing C hapter.
/-V H ow ard B aker of th e Jackson State
B ank w as elected vice president.
George M ellvaine of the F irs t N ational
B ank of R aw lins w as nam ed tre a su r
er, and Clifford E. K irk of th e F irs t
N ational B ank of Casper, secretary.
N ew ly elected directors are Mrs.
Daisy T aylor of th e A m erican N ational
B ank in Powell, Jim C hapin of th e ^
H illtop N ational B ank in Casper and
Max N eilson of the F irs t N ational
B ank of W orland.
Observes 5 0 Years
D irectors of the F arm ers State B ank
of B urns last m onth hosted a d in n er *
p a rty at a C heyenne re sta u ra n t for
th e shareholders, directors and em
ployees of th e b an k in observance of
the b a n k ’s 50th anniversary.
Prom otes Five
JACK KING and BOB BRYANS say:
“ C a sp e r Is a G o o d P la ce
T o D o B u s in e ss 99
C heck . . . F IR ST OF CA SPER fo r Credit
In fo rm a tio n , C ollection s, T ransit Item s and
A ll C o rresop n d en t S ervices.
FIRST NATIONAL BANK OF CA S P E R
E stab lish ed 1 8 8 9
N o r th w e s te r n Banker, Ju n e , 1969
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
M em ber F .D .l.C .
C arlin Sm ith, chairm an of the board
of th e C heyenne N ational Bank, has
announced the prom otion of five offi
cers and th e election of th re e new offi
cers to serve the Bank.
Roger A. W eidner has been ad
vanced from assistan t vice president
to th e post of vice p resid en t in charge
of real estate loans. Joseph A. Miller,
form er auditor, has been nam ed com p
troller, and Mrs. Y vonne C avanaugh,
assistan t cashier, has been nam ed as
sistan t vice presid en t in th e real es
tate loan departm ent. Donn J. Ross,
w ho joined the bank in 1961, has been
F
Wyoming News
prom oted from a ssista n t cashier to as
sista n t vice p resid en t in th e m ark etin g
departm en t. K en n eth C. S utherland,
form er a ssistan t cashier, has been ad
vanced to assista n t vice p resid en t in
charge of in sta llm e n t lending.
N ew officers nam ed include: T erry
— Derby, a ssista n t cashier, operations;
Lyle H arsch, a ssista n t cashier, real es
ta te loans, and Jam es G. M elvin, audi
¥ tor.
To Evanston Bank
V ern J. Sm ith, ad m in istrativ e vice
p resid en t of th e U n iv ersity N ational
B ank of L aram ie, has accepted a posi
tion w ith th e S tockgrow ers B an k in
E vansto n , effective Ju n e 15.
Mr. Sm ith cam e to th e U n iv ersity
N ational in 1966 from th e B ank of
F o u n ta in Valley, Security, Colo., and
w as prom oted to ad m in istrativ e vice
presid en t in 1968.
y Nam ed Chairman
M. A. Jolley, Lovell b usinessm an
and stockm an, has been elected ch a ir
m an of th e board of th e F irs t N ational
Bank, Lovell. He w ill fill th e vacancy
created by th e d eath of W. E. Pearson.
Mr. Jolley has been associated w ith
th e b an k co ntinuously since 1920. He
w as an active officer from 1920 u n til
1948. In 1948, he opened a real estate
and in su ran ce office in Lovell, b u t re
m ained on th e board of directors and
held th e office of vice p resident until
th e p re sen t tim e. He has been on the
board of directors since 1932.
Buys D iscount Corporation
F irs t C heyenne C orporation, a finan
cial and business developm ent organi
zation, has purchased all of th e assets
of W yom ing D iscount C orporation, a
long-established statew ide consum er
firm, according to A. H. T rautw ein,
p resid en t of F irs t C heyenne C orpora
tion.
77
providing discount facilities to Cana
dian ex p orters for foreign cu rrency
receivables; assistance to exporters in
a rran g in g foreign curren cy financing
of exported goods and services; and
assistance to C anadians in arran g in g
financing of th e ir direct overseas in
vestm ents.
F red erick J. F lynn, a financial an a
lyst and grad u ate in law, w ill m an
age th e new division. He has w ide
experience in in tern atio n al business in
Canada and L atin Am erica.
Vi elcom e again to th e
Bank o f M ontreal Sets Up
Export Services D ivision
L and of th e Tetons
The establishm ent of a specialized
export services division at th e head
office of th e B ank of M ontreal has
been announced by P eter R. Shaddick,
executive vice president, in tern atio n al
banking.
Mr. Shaddick said th e new operation
has been form ed “to provide th e finan
cing and financial advice needed by
C anada’s exporters and foreign in v est
ors to keep ab reast of in tern atio n al
com petition.”
Initially, th e export services divi
sion w ill concentrate in th ree areas:
and to the
Wyoming
B an k ers C onvention
J u n e 12-14, 1969
The Jackson State Bank
J a c k so n , W y o m in g
Member FDIC
Member Federal Reserve System
IT’S ABOUT TIME . . .
to s ta rt thinking about meeting friends, old
and new, at the Wyoming Bankers Associa
tion Convention, June 12-14, a t Jackson
Lake Lodge. Can you make it? We sincere
ly hope so!
.
>
F U S T
M & T T O M & L IM H ff i
AND
TRUST
COMPANY
OF
W YOM ING
|g------Si
M e m b e r F e d e r a l D e p o s it In s u r a n c e C o rp o ra tio n
N o r th w e s te r n Banker, Ju n e , 1969
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
78
3io n ta n a Êtan!n>rs A ssociation
With Annual Convention
Jackson Lake L odge
Jackson H ole, ^ yoniing
June 1 9 -2 1 , 1 9 6 9
ONTANA ban k ers w ill re tu rn to scenic Jackson Hole, Wyo., for th e ir 66th A ~
an n u al convention, Ju n e 19-21, w ith Jackson Lake Lodge as th e h ead q u ar
ters. J. D. Street, presid en t of the M ontana B ankers A ssociation and ch air
m an of th e board, Security B ank & T ru st Com pany, Bozem an, has announced «.
a p rogram th a t w ill feature six guest speakers.
Serving w ith Mr. S treet the p ast year as MBA officers were: A. M. Greenshields, executive vice president, F irs t N ational Bank, Brow ning, first vice
president; E. P. F rizelle, president, F irst M etals B ank & T ru st Company, T
B utte, second vice president, and R obert C. W allace, H elena, secretary-treas
u rer.
M
T h u r s d a y , J u n e 19
J. D . S T R E E T
President
A. M.
9:30 F o u rth A nnual Golf Tourney.
P.M.
1:00 L uncheon M eeting of E xecutive Council.
5:45 Social Hour.
H onoring J. D. Street, presid en t of the M ontana B ankers Association.
C om plim ents of M idland N ational Bank, Billings; F irs t M etals B ank &
T ru st Company, B utte; F irs t N ational Bank, G reat Falls, and F irst
N ational B ank & T ru st Company, H elena.
7:00 D inner.
F r i d a y , J u n e 20
A . M . G R E E N S H IE L D S
F irs t V ic e President
E. P. F R IZ E L L E
Second V ic e President
A. M.
8:00 B reakfast for 25-Year Club.
10:00 Call to O rder—J. D. Street, president, M ontana B ankers Association;
chairm an, S ecurity B ank & T ru st Company, Bozeman.
Invocation.
P re sid e n t’s A ddress—Mr. Street.
A ddress—Rev. Dr. P aul B. McCleave, d ep artm en t of m edicine and religion, A m erican M edical A ssociation, Chicago, 111.
M eeting of M ontana m em bers of A m erican B ankers A ssociation.
A ddress—Clarence A. A rata, president, N ational A ssociation of T ravel
O rganizations, Inc., W ashington, D. C.
P.M.
12:15 Noon Luncheon.
2:00 Call to O rder—P resid en t Street.
A ddress—Dr. F ra n k A. Court, T rin ity M ethodist Church, Denver, Colo.
R eport of R esolutions Committee.
A ddress—H ugh D. Galusha, Jr., president, F ed eral R eserve Bank, M in
neapolis, Minn.
6:00 Social H our—C om plim ents of U nion B ank and T ru st Company, Helena.
7:00 F am ily D inner.
9:00 Dancing. R efreshm ents courtesy of associate m em bers.
v
*
<
*
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u-
S a tu r d a y , J u n e 21
R. C. W A L L A C E
Secretary-Treasurer
N o r th w e s te r n Banker, Ju n e , 1969
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
A. M.
10:00 Call to O rder—P resid en t Street.
A ddress—R ay M onsalvatge, Dayton, Ohio,
New or U nfinished Business.
E lection of Officers.
In stallatio n of Officers.
D raw ing for Door Prizes.
A djournm ent.
u
Wyoming Bankers, June 12-14;
Montana Bankers, June 19-21.
WË&ÿ,
BILL GOSSETT
Vice President
JOHN A. EDMISTON
GARY E. BROOKS
Assistant Vice President
Assistant Cashier
DON ECHTERMEYER
Vice President
see you at
the convention
C E N
/
T R A
L .
B A
N
K
A
N
D
T
S T
C O .
DENVER. COLORADO • 303 / 825-3181
N o rth w e s te rn Banker, Ju n e , 1969
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
80
Montana News
D e n v e r U n it e d S ta te s N a t io n a l B a n k :
hou W ill Set* Tlunn a t tin*
M ontana linn tiers t 'onr ra tio n
H E follow ing m etro p o litan b a n k
ers, service and equipm ent dealers
have indicated th ey w ill be atten d in g
th e M ontana B an k ers A ssociation con
v en tio n in Jackson, Wyo., Ju n e 19-21.
T
C h ic a g o
C o n t in e n ta l I l l i n o i s N a t io n a l B a n k
& T r u s t C o m p a n y : C harles W. B attey,
vice president.
F ir s t
N a t io n a l
Bank
of
Don F errel, vice president, and P au l
C hristensen, loan officer.
F ir s t
C h ica g o :
Clarence E. Cross, Jr., a ssistan t cash
ier.
Denver
C e n tra l B a n k a n d T ru s t C o m p an y:
Jo h n E dm iston, a ssistan t vice p resi
dent.
C o lo ra d o N a t io n a l B a n k : W. J .Flem
ing, assistan t vice president.
V isit Glacier N ational Park
N a t io n a l
Bank
of
D e n v e r:
Royce B. Clark, vice president, and
Jam es E. F riesen, rep resen tativ e.
L o s A n g e le s
U n it e d C a lif o r n ia B a n k :
W. C. Sti
vers and Jam es H. H earon, vice p re si
dents.
M in n e a p o lis
M id la n d N a t io n a l B a n k :
Douglas M.
Johnson, vice president.
N o r t h w e s t e r n N a t io n a l B a n k : R ich
ard H. V aughan, executive vice p resi
dent; C. P aul Lindholm and Donald M.
A nderson, vice presidents.
N e w Y o rk
and
B a n k : A lden K.
Small, second vice president, and wife.
F ir s t N a t io n a l C it y B a n k : C. N or
m an G ustafson, a ssistan t cashier.
C h as e
The B lackfeet Indian R eservation
M a n h a tta n
M a n u fa c tu r e r s H a n o v e r T r u s t C o m
p a n y : Carl G. Carlson, a ssistan t vice
in 1 9 6 9
president.
FIRST NATIONAL B ANK of BROWNING
BROWNING, MONTANA
On
71 st y e a r
P ro vid in g M ontana Banks
w ith
B etter C orrespon den t F acilities
F ir s t
S t. P a u l
N a t io n a l B a n k
of
S t.
P a u l:
Lloyd L. Leider, executive vice p resi
dent, and wife; W allace L. Ross, sen
ior vice president, and wife, and Don
ald W. B uckm an, vice president, and
wife.
S a n F ra n c is c o
B a n k o f A m e r ic a : B. G.
F ram sted
vice president.
W e lls F a r g o B a n k : H ans J. Hunt,
vice president, and wife.
S o u th S t. P a u l
N o rth w e s te rn N a t i o n a l B a n k of
S t. P a u l: L. M. Broom, president.
B a n k E q u ip m e n t a n d O t h e r F ir m s
B a n k B u ild in g & E q u ip m e n t C o r
p o r a tio n : Donald MacDonald.
D ie b o ld , In c .:
R. H. S chutt and
L aird Gillem.
L aw re n c e
W a re h o u s e
C om pany:
Jo h n J. K am m erer.
BANK
AND
TRUST
COMPANY
M o r tg a g e G u a r a n t y In s u r a n c e C o r
p o ra tio n : C harles W. M orris.
M o s le r S a fe C o m p a n y : Carl Strick-
rott.
HELENA, MONTANA
M em b er Fe d e ral D eposit Insurance C orp oratio n
N a t io n a l
C om pany:
F id e l i t y
L if e
In s u r a n c e
A1 Palsey.
Security P acific A pplies
For Master Charge Card
THE UNITED STATES NATIONAL BANK
OF RED LODGE, MONTANA
Serving this community since 1910
A locally owned and independent bank
Member of the Federal Deposit Insurance Corporation
N o r th w e s te r n Banker. Ju n e , 1969
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
S ecurity Pacific N ational Bank, Los
Angeles, announced last m onth it
plans to en ter th e charge card field
and w ill apply for m em bership in the
W estern States B ankcard A ssociation
to issue M aster Charge cards.
In m aking the announcem ent, F re d
erick G. L arkin, Jr., chairm an of the
board and chief executive officer, said
it is an ticip ated th a t th e p rogram ’s
operational costs w ill have a m oderate
ly adverse effect on the b a n k ’s ea rn
ings of about 8 cents per share in
1969.
Montana News
C elebrates ti5th Annirei'sarij
A.B.A. A nnounces 3 0 %
Increase in D ues
The A m erican B ankers A ssociation
w ill increase the m em bership dues by
30 per cent beginning Septem ber 1,
1969, it w as announced recen tly by
W illis W. A lexander, president.
The effective date is th e beginning
of th e A ssociation’s fiscal year.
T he increase w as voted unan im o u s
ly by the A ssociation’s 150-man execu
tive council. The move h ad been rec
om m ended to th e council by both th e
adm in istrativ e and m an agem ent com
m ittees.
T his is th e first increase in dues
since 1962. It w ill tak e effect across
the board, w ith equal application at
all m em bership levels. Dues are levied
on a grad u ated scale based on total
resources.
Effective im m ediately, th e Associa
tion w ill discontinue th e practice of
funding certain activities by m eans of
special assessm ents. F u tu re su p p o rt
of all activities w ill be from reg u lar
sources of income.
G U EST S a t 65th a n n iv e rs a ry c e le b ra tio n of 1st N a tl. Bk., G lendive, v iew ed a g ia n t f a c
sim ile b ir th d a y c ak e on c u sto m e rs’ desk in c e n te r of b a n k lobby.
H E F irs t N ational B ank of G len
dive recen tly held a day-long an
n iv ersa ry celebration in honor of th e
b a n k ’s 65 y ears of continuous service
to th e Glendive area.
The b an k opened for business on
M arch 4, 1904, w ith approxim ately
$5,000 in deposits. Since th a t tim e
it has occupied th re e different loca
tions, w ith business at th e b an k m ore
th a n doubling d u rin g th e p ast 10
years. R esources are now close to
$15 m illion.
T. A. Y ashus has served as p resid en t
of th e b an k since 1966. In addition to
Mr. V ashus, o th er b an k officers are:
T. E. Sell, vice p resid en t and cashier;
T hom as W. H ughes, vice president;
Jack E. Dobson, a ssista n t vice p resi
dent, real estate and in stallm en t loans;
R ichard Pow ell, a ssista n t vice p re si
dent and ag rep resen tativ e; W illiam
P. Toy, real estate and in stallm en t
loan officer, and Donald L. Bobiney,
in tern a tio n a l operations officer.
T
G r e e tin g s to all f e l l o w m e m b e r s o f th e M on tan a
B a n k e r s A sso c ia tio n ; be s e e in g y o u at J a c k s o n !
Our congratulations to the “Official Family” for planning
an excellent program.
The
alitnaLSank
D isplays Artworks
A v a rie ty of oil paintings, w a te r col
ors, charcoal sk etches and w orks in
casein w ere recen tly on exhibit in th e
m ain lobby of th e U nion B an k and
T ru s t Com pany, D eer Lodge. The ex
hib it of 22 p ain tin g s w ere th e w o rk of
R ichard L. Nelson, Deer Lodge a rtist.
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Federal Reserve Bank of St. Louis
^
G LIN D IV E , MONTANA
"G lendive's FAM ILY Bank"
SECURITY
TRUST
&
S A V IN G S
BANK
New V ice President
A lbert E. L euthold, form er state ex
am in er ex officio su p e rin te n d e n t of
bank s for M ontana, has been elected
vice p resid en t of th e Y ellow stone
B anks at Colum bus, A bsarokee and
L aurel.
81
B IL L IN G S . M O N TA N A
...
/Esaa/;
Resources over $85,000,000
S e rv in g M on tan a, W yo m in g an d W e ste rn N o rth D a k o ta w ith
P r o m p t a n d C a refu l C o rre sp o n d e n t S ervice.
M e m b e r F ed era l D e p o s it In su ra n c e C o rp o ra tio n
M e m b e r o f F ed era l R e se rv e S y ste m
N o r th w e s te r n Banker, Ju n e , J969
...w e can help you an yw h ere in the w orld
T h r o u g h o u r a ff ilia t io n w it h t h e N o r t h w e s t In t e r n a tio n a l B a n k o f N e w Y o r k ,
w e c a n h e lp y o u p r o v id e y o u r c u s t o m e r s
w ith a n a ly s is o f t r a d e p o te n tia ls in E u ro p e , t h e O r ie n t , L a t in A m e r ic a a n d e ls e w h e r e ...w ith
c r e d it
in fo r m a tio n
and
m a r k e t in g d a t a . . . w i t h c o lle c tio n o f r e
c e iv a b le s a n d le t t e r s o f c r e d it . W ith k e y
c o n t a c t s in all t h e m a jo r m a r k e t s o f t h e
f r e e w o rld , o u r b a n k in g s e r v ic e k n o w s no
b o u n d a r ie s . C a ll u s a n d s e e h o w f a r
w e ’ll g o f o r y o u .
All the services of U.S. National are yours tor a phone call . . . 341-8765, Omaha.
JAY BORDEWICK HOWARD N IELSEN EVERETT BROWN
Vice President
Vice President
Assistant Vice President
DALE F. FAGOT
JE S S ZIMMERMAN
Assistant Vice President
Assistant Vice President
M em ber F.D.I.C.
N o r th w e s te r n Banker, Ju n e , 1969
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Federal Reserve Bank of St. Louis
83
centered on the fight against inflation,
Sen. H ru sk a said th e P resid en t has
presented proposals to Congress th a t
w ould lop $4 billion from th e budget
presented earlier by form er P resid en t
L. B. Johnson. The N ebraska Senator
said th a t P resid en t Nixon know s th a t
fiscal re stra in t m ust be com bined w ith
m onetary policy to curb inflation and
b rin g the budget in balance, hence th e
size of his proposed cutbacks. He
asked, “Can the P re sid e n t’s effort to
stem inflation be done w ith $4 billion?
We don’t know. T here are some in
Congress w ho w an t to s p e n d an o th er
$4 billion or m ore, w hile o thers w an t
to cut m ore th a n $4 billion from th e
budget.
“I feel th a t the only w ay to estab
lish a non-inflationary econom y is by
using fiscal re strain t. T h a t’s w hy th e
N ixon A d m inistration supports th e
F ed eral R eserve B oard’s tig h t m oney
policy. B udget cuts are not m et w ith
N E W P R E S ID E N T of th e N e b ra s k a B a n k e rs A sso c ia tio n is A don J e ffre y ( l e f t ) , p res.,
u n iversal support. M any letters to m y
1 st N a tl., W ay n e , p ic tu re d w ith M rs. Je ffre y , M rs. M c K ib b in a n d H. L. M c K ib b in , new
desk w an t budget cuts—b u t th ey w an t
v.p. of th e N B A a n d exec, v.p., B a n k of G e rin g a n d p re s., M in a ta re S ta te B a n k .
those cuts elsew here th an th eir own
area of in te re st.”
Speaking directly to th e areas of leg
islation affecting banking, Sen. H ruska
said th ere are th ree holding com pany
bills proposed—those from Rep. P a t
m an, Sen. S parkm an and Sen. Proxm ire—and no one at this tim e can tell
w hich w ay th ey w ill go or w h at direc
tion, if any, such legislation w ill take.
B y BEN HALLER, JR.
He urged ban k ers to th in k carefully
E d ito r
before soliciting governm ent in te rv e n
tion for th e control of too m any as
pects of th e ir business and th a t of
F re d H. Douglas, vice p resident of th e ir com petitors. He said, “I hope
TN ITED STA TES SENATOR Ro) m an L. H ru sk a told N ebraska The Om aha N ational Bank, w as elect we can hold governm ent in terv en tio n
b an k ers last m o n th th a t P resid en t ed to a three-year term as NBA tre a s to a m inim um and direct legislation
only to abuses, and not su b stitu te leg
R ichard M. N ixon is d eterm ined to u rer, succeeding E dw ard W. L ym an,
president, The U nited States N ational islative judgm ent for business judg
h alt inflation. Speaking before th e
72nd an n u al convention of th e N e B ank of Omaha.
m ent.”
W illiam H. O sterberg continues as
R eferrin g to conglom erates, th e Sen
b rask a B an k ers A ssociation in Omaha,
executive m anager and H. V. O ster ato r said th ey are actually in th e ir
Sen. H ru sk a said th e inflationary
tre n d in h e rite d by th e new adm in is b erg as secretary at NBA h e ad q u art th ird cycle in U. S. history. The first
w as early in th e 1900’s. The second
tra tio n created .8 of 1 p er cent infla ers in Omaha.
A t th e m eeting of N ebraska m em trem endous m erger effort w as in the
tion in M arch, w hich w ould create 10
per cent inflation for th e y ear if u n b ers of th e A m erican B ankers Asso 1920’s, and in 1968 th ere w ere 4,500
ciation on th e second day of th e con corporations m erged into others, in
checked.
cluding assets of $43 billions, or 4 per
H ow ever, he stressed, P re sid e n t N ix vention, Jam es H. Oliver, ABA state
cent of corporate capital.
on has ta k e n steps to h a lt this.
“In vice p resid en t and p resid en t of The
R avenna Bank, gave a brief re p o rt on
At th e sam e tim e in 1968 he noted,
flation,” he em phasized, “is one of th e
m ost vicious ta x assessm ents know n.” ABA activities and presided at the b a n k ru p tcy proceedings show th a t
election. M arion R. M organ, p resi $12,000 businesses failed and 200,000
den t of F irs t N ational Bank, Elwood, new corporations w ere form ed. “Peo
O ffic e rs E le c te d
ple say these m ergers are terrib le,” he
Sen. H ru sk a w as th e first g uest w as elected to a tw o-year term on th e
ABA executive council, and R obert said, “b u t all th e scare talk is ‘look
speaker on th e program . L a te r in th e
ing at th e pim ple’ from p re tty close
m orning, A dron Jeffrey, p resid en t of W ekesser, presid en t of F a rm e rs State
th e F irs t N ational B ank in W ayne, Bank, Sargent, w as elected to a one- range. W e need to back off and look
Mr. M organ also w as at it in broader perspective and th en
w as elected p resid en t of th e N ebras y ear term .
it doesn’t look so serious.
ka B an k ers A ssociation to succeed nam ed as m em ber of th e nom inating
com m ittee for th e ABA convention
“L et’s find out first w h a t th e abuses
H en ry G ram ann, Jr., p resid en t of th e
are and legislate on them , ra th e r th an
th is fall. N am ed altern ate to him w as
A dam s State B ank, Adam s. E lected
ju st passing laws and tak in g 20 years
as NBA vice p resid en t w as H. L. Mc Mr. Jeffrey.
to resolve them in th e courts for an
K ibbin, executive vice p resid en t of
in terp retatio n .
Inflation Fight
th e B ank of G ering and p resid en t of
“F o r m any people, bigness is bad;
In his talk to th e m em bership w hich
th e M inatare S tate B ank.
A don Jef f veil i s E lected as
N ebraska A ssociât ion P re sid e n t
I
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Federal Reserve Bank of St. Louis
N o r th w e s te r n Banker, Ju n e , 1969
84
Nebraska News
L E F T — S ta n le y P u g h , F D IC su p e rv isin g ex am in er, K a n sa s C ity , M o.; A d o n Je ffre y , pres., 1st N a tl., W ay n e, a n d n ew pres, of th e
N B A , a n d th e H on. R om an L. H ru s k a , U. S. S e n a to r fro m N e b ra s k a . C E N T E R — H e n ry G ra m an n , r e tir in g N B A p res, a n d p re s, of
A dam s S ta te , w a tc h e s as C. R. H a in e s, w ho re c e n tly re tire d as N e b r a s k a ’s d ire c to r of b a n k in g , re ce iv e s fro m G o v e rn o r N . T. T ie m an n
an N B A p laq u e re c o g n iz in g M r. H a in e s ’ 40 y e a rs of se rv ice to th e b a n k in g d e p a rtm e n t. R IG H T — M r. G ra m a n n re ce iv e s his p a s t
p re s id e n t’s p in fro m H a ro ld E . Roe, fo rm e r N B A p res, a n d p res., B a n k of B e n n in g to n .
th ey have a fear of bigness and of
change. Bigness in govern m en t is
som ething I th in k we c a n cu t so we
th e people can com prehend and m a n
age it.
“L et us alw ays be blessed w ith tro u
bles. T hey keep us alert, aggressive
and on our toes and are signs of
change.”
B an k M anagem ent
The second guest sp eaker w as Allen
P. Stults, p resid en t of th e A m erican
N ational B ank and T ru s t C om pany of
Chicago and p resid en t of th e Illinois
B ankers A ssociation. L a te r in the
m orning, Mr. S tu lts h eard th e N ebras
ka b ank ers endorse u nanim ously his
candidacy for election as ABA vice
presid en t at th e 1970 convention.
The title of Mr. S tu lts’ ta lk w as
“Basic C oncepts in B ank M anage
m en t.” He first defined m anagem ent
as “judicious use of a com pany’s re
sources to obtain m axim um profit.” He
gave an analysis of th e top 100 b anks
and the m ain points th a t w ere com
m on to each of th e m ore successful
ones. He th e n related how these cri
teria w ere adapted for th e use of his
bank. H is talk is review ed in detail
in a special featu re in th is issue.
N e w B a n k in g D ir e c t o r S p e a k s
N eb rask a’s new b an k in g director,
E dw in A. Langley, addressed the first
business session. He had been in office
only th re e w eeks and said he w ould
first atte m p t to establish a personnel
stru c tu re w ith in th e d ep artm en t th a t
w ould have a deputy director and th ree
su p erin ten dents. These th ree m en
w ould be responsible individually for
th e securities division, savings and
loan division and banking division.
E ach su p erin ten d en t th en w ould es
tablish a recru itin g and tra in in g p ro
gram . He said th is is being done be
cause th e d ep artm en t needs d istrib u
tion of th e w ork load and flexibility to
sh ift personnel w h ere needed.
He said “th ere are m any changes
tak in g place today and w e m u st be
read y and equipped to m eet them .
The one b ank holding com pany is an
exam ple, and th ere are m any others,
all challenges of change affecting
banks. W ith these changing economic
needs we m u st keep pace w ith them
th ro u g h stro n g b u t flexible state and
d ep artm en tal rules. W e definitely
need th e dual system .”
S p e c ia l R e p o rts
M arion R. M organ, presid en t of the
F irs t N ational B ank in Elwood, gave
a re p o rt as chairm an of th e NBA com
m ittee on grants-in-aid. As reported
in an earlier issue, Mr. M organ had
p resen ted checks for $2,000 each to
the deans of th e U niversity of N ebras
ka college of business ad m in istratio n
and ag college. His rep o rt concerned
itself w ith the n u m ber of banks th a t
contributed to the grants-in-aid fund.
P articipation by banks in th e six
groups in th e state ranged from 50 to
66 per cent, w ith a total of 363 banks,
or 60 per cent of the sta te ’s total, p a r
ticipating in th is v o lu n tary effort.
W illiam B. B randt, NBA legislative
counsel, U nadilla, gave a detailed re
p ort on the bills th a t directly affected
banking, n o ting th a t m ore th a n 130
bills in th e N ebraska L egislature w ere
of concern to banks in v ary in g de
grees. The m ost controversial of these
w ere th e th ree bills proposing b ran ch
banking, ran g in g from an increased
num ber of drive-in offices for Omaha
and Lincoln to statew ide branching.
All th ree bills w ere killed in com m it
tee. Two holding com pany bills also
w ere killed. One w ould have changed
the definition of a one-bank holding
com pany to perm it as m any as 10
banks in a holding com pany. The o th
er bill w ould have repealed the en tire
sta tu te governing holding firms.
One bill of considerable im portance
to state banks, as rep o rted earlier, is
LB202, w hich increases a state b an k ’s
loan lim its from 20 to 25 per cent, and
g ran ts an additional 10 per cent to be
loaned w hen it is secured by 115 per
L E F T — W. W . Cook, Sr., p res., B e a tric e N a tl. B& T; M rs. E u g e n ia A b b o tt, dir., G u a rd ia n
S ta te , A llia n c e ; W m. B. H uffm an, exec, v.p., B a n k of V a le n tin e , a n d M rs. H uffm an.
C E N T E R — J o e R a d o sti, v.p., A raer, N a tl., C re ig h to n ; M rs. R a d o s ti; D ic k A d k in s, p res.,
O sm ond S ta te ; M rs. J a c k B ab co ck , w hose h u sb a n d is 2nd v.p., O m aha N a tl.; H e rb E c h te rm eyer, sr. v.p., O m aha N a tl.; M rs. E c h te rm e y e r, a n d M rs. A d k in s . R IG H T — S e a te d : T heo B. Cole, p res., B a n k o f T a y lo r; J a c k
B abcock, 2nd v.p., O m aha N a tl., a n d M rs. Cole. S ta n d in g : J o h n 01 afso n , 2nd v.p., a n d F re d D ouglas, v.p., b o th w ith O m aha N a tl.
N orthw estern
Banker, June,
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Federal Reserve Bank of St. Louis
1969
A
85
This is
BankAmericard
Country.
Restaurants, airlines, hotels and motels, stores and
shops, and service stations. They’re all BankAmericard country. O ver 390,000 locations here at home
and around the world honor BankAmericard. And
the list is growing daily.
Now your bank can o ffer this unique credit card to
Bank Americard.
A U T H O R IZ E D
S IG N A T U R E S
m a lea ms b i a s
G O OD THRU
O O /O O * B A C
JOHN DOE
V_________________________________________________________
©Service marks owned and licensed by BankAmerica Service Corp.
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Federal Reserve Bank of St. Louis
your customers. (It’s the Num ber One Bank C redit
Card in the nation.) Just contact Don Ostrand, Vice
President, or any correspondent bank o ffice r at the
First National Bank of Omaha, the BankAm ericard
licensee bank in Nebraska, Iowa, South Dakota
and North Dakota.
First
National
Bank
of Omaha
N o r th w e s te r n B anker, Ju n e , Ì969
86
Nebraska News
L E F T — A. H . W a le n tin e , exec, v.p., B a n k o f B e rtra n d ; R ick K e lse n , cask., a n d C h a rle s T. B a c k e r, exec, v.p., b o th w ith B u rt C ounty
S ta te , T e k a m a h ; L y le S to n em an , v.p. 1st N a tl. B&T, L in c o ln , a n d A lla n A rm b ru ste r, dir., 1st N a tl., Cozad, L E F T C E N T E R — L eon
L a n g e m e ie r, p res., 1st N a tl., L y o n s; J o h n V a n H o rn e , p res., V a n H o rn e In v e s tm e n ts , O m aha, a n d C ooper B u tt, cash., N e b ra s k a S ta te ,
S o u th Sioux C ity. R IG H T C E N T E R — D ic k T ay lo r, v.p. & cash., 1st N a tl., S ioux C ity ; M rs. T h o rn d y k e a n d W ay n e T h o rn d y k e,
exec, v.p., 1st N a t l , T ek a m a h . R IG H T — M rs. S o u b a a n d L es S o u b a , pres., D a v id C ity B a n k ; F re d P fa ff, v.p. & genl. m gr., LT. S.
Check B ook Co., O m aha, a n d M rs. P fa ff.
cent of th e livestock or by w arehouse
receipts.
T r u th -in -L e n d in g
Roger Guffey, g eneral counsel and
secretary of th e F ederal R eserve B ank
of K ansas City, gave an excellent sum
m ary of th e “T ruth-in-L ending” law
w hich becom es effective Ju ly 1. He
s a id , “R egulation Z doesn’t tell you
how m uch you can charge on an ex
tension of credit, b u t it does stip u late
th a t all costs of loans m u st be tra n s
lated into m eaningful, stan d ard term s
of cost so th a t any borrow er can m ake
an in tellig en t use of cred it,”
He said this involves tran slatin g
costs into dollars as the finance charge
and th e n converting this into an an
nu al percentage rate of in terest.
He recom m ended to b ankers th a t
th ey get the regulation and sit down
and read it carefully to become ac
quain ted w ith its provisions, th en ju st
follow w h at is prescribed in the docu
m ent.
P rem iu m s on credit life m ay be ex
cluded from th e finance charges, pro
viding th e b an k er states in w ritin g it
is not a condition to th e extension of
credit, and states in w ritin g w h at the
prem ium cost is for the credit life.
Also, th e sam e exclusion holds tru e
for fire hazard insurance, if the b an k
er states in w ritin g th a t the insurance
can be purchased any place; and if it
is purchased at th e bank, w hat the
b a n k ’s charge is.
Mr. Guffey said he believes R egula
tion Z w ill be a boon to banks because
if they have been loaning at a lower
cost th an other types of lenders, this
difference w ill be even m ore pro
nounced after Ju ly 1, w hen com pari
sons on a stan d ard basis can be made.
He recom m ends the b an k er have the
custom er sign all disclosure docu
m ents for the b a n k ’s protection. Such
L E F T — R ic h a rd C. A rm stro n g , exec, v.p., O v e rla n d N a tl., G ra n d I s la n d , an d M rs. A rm stro n g ; M rs. Z im m erm an a n d Ja m e s A. Zimm an , v.p., U. S. N a tl., O m aha. C E N T E R — E d. B u rk e , v.p. & cash ., F a rm e rs & M e rc h a n ts B a n k , Im p e ria l; J a y B o rd ew ick , v.p., U. S.
n a tl. B a n k , O m ah a; H a ro ld Q u a lse tt, pres., 1st N a tl., S ch u y ler, a n d J e s s Z im m erm an, a,v.p., U. S. N a tl. R IG H T — D e n n is R e ilin g ,
D eL uxe C heek P r in te r s , L in c o ln ; M itc h M o re t, v.p., F a rm e rs S ta te , S u p e rio r; H o w a rd N ie lsen , v.p., U. S. N a tl., O m aha, a n d L a r r y
G a ssaw ay , zone m gr., D eL uxe C heck P r in te r s , K a n sa s C ity , Mo.
L E F T — A llen P . S tu lts , p res., A m e ric a n N a tl. B&T, C hicago, w h o se c a n d id a c y fo r e le ctio n as v.p. of th e A B A a t th e 1970 election
w as e n d o rsed by th e N e b ra s k a B a n k e rs A ssn, a t th e c o n v e n tio n ; J o h n R. B u rt, re g io n a l a d m in is tra to r of n a tio n a l b a n k s, K a n sa s
C ity , a n d E d w in A. L a n g le y , N e b ra s k a ’s new d ire c to r of b a n k in g , L in c o ln . C E N T E R — J o h n F a rre ll, a.v.p., S to c k y a rd s N a tl., O m aha;
S la v o m ir V o d e h n al, cash., C larkson B a n k ; F r a n k J . S ib e rt, v.p., S to c k y a rd s N a tl., a n d E ld rid g e S c riv en , pres., B a n k of G ering.
R IG H T — J a m e s I. B lack, pres., Cones S ta te B a n k , P ie rc e , a n d M rs . B lack , w in a p rize fro m Cecil W. M eans, sr. v.p., S to c k y a rd s N a tl.
N o r th w e s te r n Banker, Ju n e , 1969
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Federal Reserve Bank of St. Louis
87
F"
We w on’t
give you
a bum steer
at
NBC
i •
Winton (Buck) Buckley (left) and Roy Yaley, Vice-Presidents
of our Correspondent Bank Department, just won’t give you
a bum steer on anything. You get choice treatment when
you deal with Buck and Roy...... and that’s no bull!!!
fy
National Bank of Commerce
LINCOLN,
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Federal Reserve Bank of St. Louis
NEBRASKA
N o rthw estern Banker, Ju n e , 1969
88
Nebraska News
L E F T — J im O liver, p res., R a v e n n a B a n k a n d N e b ra s k a A B A s t a te v .p .; M a rio n M o rg a n , p re s., 1st N a tl., E lw ood, w ho w as e le c te d to
th e ABA. exec, council fo r tw o y e a rs, a n d D ale W a lk e n h o rs t, exec, v.p., 1 st N a tl., N o rth P la tte , A B A reg. v.p. C E N T E R — S e a te d :
D on R. O stra n d , v.p., 1st N a tl., O m ah a; B ill F le m in g , a.v.p., C olorado N a tl., D e n v e r; H e rm a n Ja c o b s, m k tg . off., 1st N a tl., Om aha*
M rs. B ob B ro w n a n d M rs. M erv . A e g e rte r, w hose h u sb a n d s a re w ith 1st o f O m aha. S ta n d in g : M e lv in E m eig h , a.v.p., C olorado N a tl,
a n d J o h n D a v is, chm n. 1st o f O m aha. R IG H T — B ill C onnellan, 2nd v.p., C hase M a n h a tta n , N ew Y o rk ; F . P h illip s G iltn e r, exec, v .p .’
a n d J o h n L a u ritz e n , p res, a n d chm n. of exec, comm ., 1 st N a tl., O m a h a, a n d E v e r e tt K e n n e d y , 2nd v.p., C hase M a n h a tta n .
R egulation Z records m u st be k ep t tw o
years.
L e g is la t iv e P a n e l
The final po rtio n of th e 72nd con
vention w as a panel com posed of four
p ro m in en t m em bers of th e N ebraska
Legislature. T hese m en were:
Senator Jerom e W arn er, D istrict 25,
W averly, sp eaker of th e legislature.
Senator C. W. H olm quist, D istrict 16,
Oakland, and ch airm an of th e execu
tive board of th e legislature.
Senator W illiam M. W ylie, D istrict
40, Elgin, chairm an of th e com m ittee
on com m ittees.
Senator R ichard F. Proud, D istrict
12, Omaha, ch airm an of th e banking,
com m erce and in su rance com m ittee.
E ach m an w as req u ested to give a
few m in u tes su m m ary of a p a rtic u la r
phase of legislation in w hich he had
p u rsu ed a keen in te re st d u rin g his
ten u re of office. Sen. W a rre n dis
cussed th e condition of th e s ta te ’s
highw ays and said it w ould tak e $3.7
billion to b rin g all th e highw ays up to
acceptable stan d ard s over a 20-year
period.
Sen. H olm quist gave a review of
public pow er in th e state and th e p res
en t statu s of legislation to control
pow er production and tran sm issio n
authorities.
Sen. W ylie’s personal concern is in
th e area of m ental health, and w ith
th e k n o tty problem of providing prop
er facilities, how to finance them and
to determ ine w ho should pay w h at
p roportion of th e costs.
A C a ll f o r A c t io n
Sen. P roud referred to th e ex
trem ely divergent view s of the tw o
sides in th e b an k in g in d u stry th a t ap
peared before the legislature th is year
and stated, “I m u st say th a t th e m en
on both sides of th e fence in these
b an k in g issues, large banks and sm all
b anks alike, have been gentlem en
th ro u g h o u t and we are g ratefu l for
th is kind of conduct on th e p a rt of all.
“I recall th a t after an accident ev
eryone drives m ore carefullly for
about tw o days, b u t I say now is the
tim e to m end your fences, look at
th in g s realistically and look to the
n e x t session. W e all tend to look at
our ow n problem s from our own
standpoint, instead of several stan d
points. I hope th a t these differences
w ill be ironed out.
“I urge you all to be in terested and
involved in governm ent; not ju st w hen
y o u r vested in te re st is at stake, b ut at
all tim es, on all issues. This is ty p i
cal of all businessm en. O ther groups
are not like this; labor, for exam ple,
and th is is rig h t for them to be con
cerned. Those w ho don’t take an in
terest, deserve w h at th ey get.
“I have one suggestion for your as
sociation. Id en tify th e areas of in te r
est of yo u r b an k ers—social problem s,
business problem s, financial issues—
and have these b an k ers w ork in these
areas of in te re st in th e state w ith the
legislature as leaders on behalf of all
N ebraskans.
“T here are changes afoot. We used
to have a ru ra l econom y in th is state,
b u t it is fast changing. Twenty-five
per cent of th e sta te ’s population is in
Omaha and an o th er high per cent in
Lincoln. T here is v ast m eaning here.
Back in A rapahoe w e alw ays knew
w ho w as on the city council and the
school board. In cities it is different,
for people ju st do not know th e ones
w ho are on th e school board, although
th ey generally know who is on the
city council, b u t only by nam e.
“C onsequently, on th e ballot you
vote for a nam e, b u t you don’t really
know th e individuals. It follows th a t
the one w ho gets th e m ost publicity,
p referably favorable, gets elected, and
he does not necessarily rep resen t a ll
the people, b u t only those w ho got him
elected. This takes money.
L E F T — L. J . T itu s, p res., 1st N a tl., H o ld re g e ; M rs. Y a u ssi; M rs. T itu s , a n d G lenn Y a u ssi, chm n., N a tl. B a n k o f Com m erce, L in co ln .
C E N T E R S e a te d : A do lp h T h u m an , S ta te B a n k o f T re n to n ; his d a u g h te r , M rs. O scar L. C lark e, J r., w hose h u sb a n d is v p a n d t o
N a tl. B a n k o f Com m erce, L in c o ln , a n d K e n N ie d a n , exec, v.p., H e r shey S ta te B a n k . S ta n d in g : R oy Y a ley , v.p., a n d H e rm a n A. B rockm eier, sr. v.p., b o th w ith N a tl. B a n k o f Com m erce. R IG H T — C h a rlie K in g a n d H a rv e y H a y es, v.p.-sales m gr., b o th w ith O m aha P r i n t
in g C om pany, w ith M rs. R ick N elsen, T e k a m a h ; J a c k ie E ric k so n , H a s tin g s , an d M rs. C h a rle s B a ck e r, T ek a m a h .
Northw estern
Banker,
June,
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
1969
89
V - -X-
Wheat is the basic crop here in the mid
west. And much of it is financed, one way or
another, through Commerce Trust and its
network of correspondents. Much of the equip
ment necessary to plant, fertilize and harvest
this giant crop, to say nothing of the land
itself, is ultimately made available through
Commerce Trust and its correspondents.
No matter how you slice it, there’s more
“ bread” in Commerce country. Thousands of
wheat men rely on Commerce Trust. You
can, too.
COMMERCE TRUST RANK
Kansas City, Missouri
Member Federal Deposit Insurance Corporation
N o r th w e s te r n Banker, Ju n e , 1969
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
90
Nebraska News
a
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&
m
j
3e4
L E F T — C lark W enke, pres., P e n d e r S ta te ; J im F o ley , m unic. sa les, C hiles & Co., O m aha, a n d D on E c h te rm e y e r, v.p., C e n tra l B&T,
D enver. L E F T C E N T E R — M rs. L eR o y A b b o tt, J r., A llia n c e ; D ic k S ta r r e tt, (b a c k ), v.p., M o rg a n G u a ra n ty T ru s t, N ew Y o rk ;
G eorge A lff, v.p., D e n v e r IT. S. N a tl., D e n v e r; M rs. J e r r y B eag le, w hose h u sb a n d is a.e., G u a rd ia n S ta te , A llia n c e ; T e rry R y a n (b a c k ),
L o an officer, D e n v e r U. S. N a tl., D e n v er, a n d J o h n N. F ix , 2nd v.p., N o rth e rn T ru s t, C hicago.
R IG H T C E N T E R — S e a te d : M rs.
H a ro ld M y e rs; D a n H uff, p res., S e c u rity S ta te , O sford, a n d M rs. H uff. S ta n d in g : R o b e rt E . Roll, v.p., R o b e rt E. S chw eser C om pany,
O m aha; C huck P o o r, secy .-treas. o f th e S chw eser firm, a n d H a ro ld M yers, W ee p in g W a te r. R ig h t— H a ro ld E . L arm o n , p re s., 1st
N a tl, of M cC ook, ho ld s f o r th a t th e o rg a n in th e O m aha N a tl, h o s p ita lity room .
“I th in k th is system is in trouble
and needs radical surgery. W e are in
trouble w ith cam pus disturbances, and
the h ard core has th e tacit approval of
th e rest. I th in k these kids are not
m uch different th a n we w ere—w e’re
ju st not talk in g to them .
“W hy does organized crim e exist in
the U. S.?
“I ’ll leave you w ith th a t question,
and hope th a t some of you w ill take
an in te re st in g o vernm ent . . . m ore
th a n you have in th e p ast.”
The panelists w ere given consider
able applause at th e conclusion of
th eir presen tatio n .
S o c ia l H ig h lig h t s
A h ig h lig h t of th e convention again
w as th e M onday n ig h t social h o u r
hosted by th e Om aha C learing H ouse
banks, and th e a n n u al b an q u et at
w hich top-notch m usical e n te rta in
m ent w as provided. Mai D unn and
his concert orch estra w as again se
lected to en te rta in at th e banquet.
Mr. D u n n ’s orch estra is m ade up of
his ow n men, plus all the o th er Omaha
band leaders and th e ir selected key
personnel. The resu lt is one of the
finest l a r g e orch estras assem bled.
T hey played a n um ber of Broadw ay
m usical selections, as w ell as popular
dance m usic, d u rin g th e dinner. The
C avaliers Q uartet, w orld cham pion
B arbership Q uartet singers, provided a
half-hour of delightful old-fashioned
harm ony.
At th e conclusion of the evening’s
festivities in th e Om aha A uditorium ,
th e crow d of 1,000 th ronged outside to
be greeted by a steady drizzle. The
R obert E. Schw eser in v estm en t firm of
Om aha came to the rescue w ith sev
eral cartons of lightw eight clear plas
tic rain co ats and hoods th a t fold up
into pocket size. F ew of the guests
got w et due to th is courtesy.
MUNICIPAL AND CORPORATE BONDS
LISTED STOCKS
UNLISTED AND LOCAL STOCKS
Orders Executed on All Principal Exchanges
C H IL E S ^ C O M P A N Y
MEMBER, MIDWEST STOCK EXCHANGE
412 Farm Credit Building, Omaha, Nebraska 68102
Phone 346-6677 (Area Code 402) Teletype 402 348-1040
Other Offices Located in
LINCOLN
Nebraska
#
N o r th w e s te r n Banker, Ju n e , 1969
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
LEXINGTON
Nebraska
.
VERMILLION
South Dakota
Mr-
R e s o lu tio n s
R esolutions passed at th e business
session, in addition to th e one sup
p o rting Mr. S tu lts’ candidacy, in
cluded th e following:
® C ontinued su p p o rt for th e dual
b anking system .
• All facilities of both state and n a
tional banks should be subject to state
law.
• T hat banks give careful considera
tion w hen investing in d eb entures and
securities of other com peting financial
in stitu tio n s w ho enjoy special tax rV
privileges.
• S upport for establishing a state
b an king board, and th a t th e NBA leg
islative com m ittee and executive coun
cil m ake a study of th is subject d u rin g
th e n ex t year and a half and p resen t
a proposal to the 1971 N ebraska Legis
lature. It w as recom m ended th a t the
NBA w ork closely w ith the director
of banking in th e stu d y of such a
board. — E n d .
Set Dates for Nebraska
Bankers 1 9 6 9 Group M eetings
The following schedule has been an
nounced for the 1969 group m eetings
to be held this fall by the N ebraska.
B ankers Association:
Oct. 7—Group 6, Scottsbluff.
Oct. 8—Group 4, McCook.
Oct. 9—Group 5, K earney.
Oct. 14—Group 3, Norfolk.
Oct. 15—Group 2, Colum bus.
Oct. 16—Group 1, Lincoln.
H onored fo r 5 0 Years
Am erican Legion Service
Jo h n W. Green, a b an k er si
1906, and chairm an of th e board
W auneta Falls Bank, W auneta, wp resen ted a 50-year pin recen tly by
A m erican Legion Post No. 304 in W au
neta.
Mr. G reen helped organize the W au
neta A m erican Legion P ost following
his m ilitary service in W orld W ar I.
Nebraska News
Issues
N ew Tax Suri ut/ A erea ni
H E F ir s t N ational B ank of Chica
go announced a new Tax Saving
A ccount w h ich w ill enable depositors
to defer in te re st p aym ents and th e in
come tax es on them for periods ra n g
ing from tw o to 10 years.
C larke C. Staym an, senior vice p resi
den t of th e b ank and head of th e re
tail ban k in g d ep artm en t, said the new
Tax Saving A ccount (TSA) com bines
a nu m b er of ad v antages w hich have
nev er before been offered by The F irs t
in passbook form .
TSA g u aran tees a y early in te re st
ra te of 5 p er cent, com pounded daily,
and th e in itia l deposit can be as little
as $100. S ubsequent deposits can be
as low as $25. D eposits can be m ade
on a re g u la r basis by autom atic tra n s
fer from th e d epositor’s checking ac
count a t th e bank, or by a rra n g in g to
have stock dividends of $25 or m ore
deposited d irectly into th e T ax Sav
ings A ccount.
T he depositor agrees not to w ith
draw any of th e princip al and in te re st
d u rin g th e te rm of th e deposit. Mr.
S taym an said th e in te re st ra te w ill be
keyed to th a t on th e b a n k ’s in v est
m en t passbook accounts. Should th e
ra te on th e in v estm en t passbook acro u n ts rise, so w ill th e ra te on TSA.
The TSA ra te could also come down,
b u t nev er below 5 p er cent.
“The new T ax Savings A ccount is
ideally su ited for depositors w ho are
w ith in a few y ears of re tire m e n t,” Mr.
Staym an noted, “because, u n d e r cu r
re n t regulations, th e ir in te re st pay
m ent and th e incom e taxes on them
can be d eferred to a tim e w hen they
m ay be in a low er ta x b racket. P a r
ents and g ra n d p a re n ts w ill find TSA
an excellent vehicle, as w ill profes
sional ath letes and a g reat m any oth
ers an ticip atin g low er incom e in fu
tu re y ears.”
The F irs t is one of th e few b anks in
th e co u n try offering th is k ind of Tax
Saving Account. The b an k has m ore
savings accounts u n d er one roof th a n
any oth er in stitu tio n in th e w orld.
T
P rom oted in Los A ngeles
Jo h n S. W ard, Jr., has been p ro
m oted from tr u s t officer to vice p resi
dent and tr u s t officer w ith Security
Pacific N ational Bank, Los Angeles.
Mr. W ard is m an ag er of th e G uardian
ship and C onservatorship U nit in th e
b a n k ’s head office tr u s t d ep artm en t,
Los Angeles. He joined th e depart-
A
•A >
91
YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE, VAULT AND
TIMELOCK EXPERTS
F. E. DAVENPORT & C O .
OMAHA
m ent in 1954, w as appointed assistan t
tr u s t officer in 1960 and w as nam ed
tr u s t officer in 1964.
Yntan Capital Increased
H. H. Peters, p resid en t of th e B ank
of Y utan, has announced th a t the
stockholders recen tly declared a 100
p er cent stock dividend w hich in
creases capital stock from $25,000 to
$50,000. S urplus also is $50,000.
Joins Grand Island Bank
W illiam H. Riley, judge of th e w o rk
m e n ’s com pensation court at G rand Is
land, has resigned th a t position to join
F irs t N ational B ank of G rand Island
on Ju n e 1 as a vice presid en t and tru s t
officer.
Moves to Scottsblnff
Jack J. Moss, a native of B roadw a
ter, has been elected an assistan t vice
p resid en t of W estern N ational B ank in
Scottsbluff. He has been associated
w ith th e W estern N ational B ank of
Casper, Wyo., before m oving to Scotts
bluff.
COUNTY SEAT BANK . . .
(C ontinued from page 33)
derstan d able in th a t you w ill do som e
th in g w ith the ball to see th a t w e are
closer to the goal a t th e end of the
play th a n w hen we gave you th e ball.
Our new man
in Omaha,
Thomas A.
Shaddy
We are pleased to
announce that Tom Shaddy
is now associated with
us as a Registered Repre
sentative in our Omaha
Office.
P ip e r , J a ffray
&lH
opw ood
E stablished 1895
Members New York Stock Exchange
100 City Nat’l. Bank Bldg.* Omaha Neb. 68102
Phone 3 42-2020
A n o t h e r Case H i s t o r y
L et m e give you an o th er exam ple of
w h a t I m ean. A sm all businessm an in
our tow n came to us and asked us to
be on his team . H is in d u stry had
changed from m any sm all and m edi
um w holesalers to ju s t a few giant
chains and he w as being squeezed.
He felt th e odds w ere too g reat to try
to becom e an o th er G oliath w hen th ey
w ere already fighting am ong th em
selves—and he didn’t w an t to forfeit
th e gam e by quitting. So d u rin g some
huddles we helped him w ith his idea
of a new product he had. never m ade
before, and th a t sounded like a w in
ner.
The play w as called deep in his own
end zone. W e handed him th e finances,
and all of us are still w atching one of
th e m ost b eau tifu l jobs of b roken field
ru n n in g th a t is scoring new sales
peaks every year. I am talk in g about
a w holesale bread b ak ery th a t is so
busy m aking G randm a’s F ru it Cakes
for n ational d istrib u tio n th a t th ey
gave up th e bread business entirely.
T h a t’s our story of ju st one center
on a team and how we w ere able to
help w in th e game. E ach of you have
your own team , and back in your
hom e tow n th ere is a b an k er w aiting
to join your huddle and help you w in
your game. — E n d .
N o r th w e s te r n Banker, Ju n e , 1969
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
92
R eceives FFA Chapter Award
F ra n k E. K rivohlavek, a ssistan t
cashier, City N ational B ank of Crete,
w as chosen recen tly as a recip ien t of
th e degree of H o n o rary C hapter F a rm
er by the C rete F F A Chapter. He
w as presented th e aw ard du rin g the
local ch ap ter’s ban q u et at the Crete
Senior H igh School. Mr. K rivohlavek
w as one of two m en receiving th e
aw ard.
The other w as F re d Ahlschwede, ow ner and operator of Ahlschw ede Ford.
WO ap p o in tm en ts in th e tr u s t de
p artm e n t of F irs t N ational B ank
and T ru st C om pany of Lincoln w ere
announced last m onth.
G a y la n A b o o d joined th e d e p a rt
m en t as an in v estm en t an aly st in th e
tru s t in v estm en t area and L a r r y H e is e r m a n has been em ployed as a tru s t
officer in th e pension and profit-shar
ing area.
Mr. Abood is a n ativ e of L exington,
w as g rad u ated from th e U n iv ersity of
N ebraska, th e n sp en t five y ears in the
U nited States A ir Force. He re tu rn e d
to th e U n iv ersity of N ebraska and ob
tained his M aster of B usiness A dm in
istra tio n degree. Since Ju n e, 1968, he
has been em ployed as an in v estm en t
an aly st by B ridges In v e stm e n t Com
pany, Omaha.
Mr. H eiserm an is a K ansas n ative
and w as g rad u ated from th e U n iv er
sity of K ansas. F o r th e p ast nine
y ears he has been em ployed by T rav
elers In su ran ce C om pany in its p en
sion sales d ep artm en t. H e w as tra n s
ferred to Lincoln from W ichita w ith
T rav elers about tw o y ears ago.
T
*
*
*
C. T in s tm a n , p resid en t of F irs t
Mid A m erica Inc., has announced the
election of M e l v i n H . A n d e lt as a vice
p resid en t of th e L incoln and Om aha
based in v estm en t b an k in g firm. He
has been in th e Lincoln office of the
firm since its founding in 1961 and
w as form erly w ith F irs t T ru st Com
p an y of Lincoln.
Mr. T in stm an also announced th e
prom otion of four m en to senior ac
count executives in four of th e firm ’s
m idw est offices. T hey are: H a r o ld
T a y lo r , Lincoln; J o h n W . D o n n e lly ,
Cedar R apids, Iowa; I r w i n M . B r e n
n e r , Des Moines, Iow a, and A lf r e d L .
F o x , Omaha.
D a le
*
>(= *
C onstruction on th e new F i r s t N a
t io n a l B a n k building is p rogressing
well, according to a re p o rt from an of
ficial of th e bank. V ault con stru ctio n
w as com pleted recen tly w h en 186,000
pounds of reinforcing steel w ere p u t
in place and encased in 18 inches of
concrete. The v a u lt w ill have th re e
N o rthw estern
Banker, June,
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
1 96 9
doors, tw o of th em w eighing eight and
one-half tons each and th e th ird w eigh
ing 12 tons.
P o u rin g of th e floors in concrete
form s is proceeding at th is time.
The b a n k ’s p resen t p ark in g and
drive-in w indow custom ers are being
rero u ted tem p o rarily to an o th er en
tra n c e w hile building construction oc
cupies th e alleyw ay n orm ally used.
*
*
*
Officials of
T ru s t
F i r s t N a t io n a l B a n k a n d
C o m p a n y also announced last
m o n th th a t dates for th e b a n k ’s an
n u al fall C onference of B ank C orre
spondents w ill be Septem ber 19 and
20 in Lincoln.
*
*
*
In last m o n th ’s issue it w as reported
th a t C it y N a t io n a l B a n k purchased an
histo rical old p arlo r car from the Rock
Islan d R ailroad and w ould convert it
in to a drive-up b ank facility. It also
stated th a t th e Rock Island w as build
ing a new depot nearby.
The sto ry w as rev ersed from th e
correct facts, due to a m isu n d erstan d
ing, and R o la n d H . T o r n b lo m , p resi
d ent of City N ational, a fter recovering
quickly from an anticipated case of
claustrophobia a f t e r r e a d i n g the
N o r t h w e s t e r n B a n k e r story, hastened
to w rite us th a t th e b an k purchased
th e Rock Islan d ’s depot for a drive-up
b an k and it should be ready for occu
pancy some, tim e in June.
Rock Island R ailroad is using the
old p arlo r car tem p o rarily as a depot
in th e H avelock area w hile a new de
pot is constructed.
The L incoln C hapter of the A m eri
can In stitu te of B anking is offering a
sum m er class session in “P rinciples of
B ank O peration.” The in stru c to r w ill
be E llis D a n n , vice presid en t and cash
ier of City N ational Bank. Mr. Dann
has been in b anking for m ore th an
20 years and has previous experience
in teaching A.I.B. classes.
P re se n t plans are for classes to be
held at 7:00 p.m. tw o nig h ts a week,
on M onday and W ednesday evenings,
for a total of only seven w eeks. T h ere
fore, th e class w ould be com pleted
d u rin g th e w eek of Ju ly 7, 1969.
Nebraska D eaths
Ja rd y M. Counce, 65, died unexpect
edly in H ayes C enter, w here he w as
p resid en t of th e F irst N ational Bank.
S tanley E. B adura, 78, form er p resi
dent of th e A shton State Bank, died
recently in Ashton.
Guy S. H utchins, 93, form er b an k er
in Shubert, died recently in F alls City.
Jam es V. O’Donnell, 74, presid en t of
F arm ers S tate B ank at L exington
died in a L exington hospital recently.
He joined F a rm e rs S tate in 1929 and
had been presid en t since 1950. He
w as also a director of O verton N a
tional B ank at Overton. Mr. O’D on
nell w as a form er presid en t of Group
5 of the N ebraska B ankers Associa
tion and had served on th e NBA exec
utive council. His surv iv o rs include a
son, Jam es G. O’Donnell, vice p resid en t
of the bank.
Jam es A. Fiala, 68, a life-long How
ells resid en t and re tire d businessm an,
died recen tly in a W est P oint hospi
tal after a sh o rt illness. D uring a 15year period he w as a ssistan t cashier
of the Colfax C ounty B ank a t H ow
ells.
C ooper Shows Gains
G uy Cooper, board ch airm an of The
O. A. Cooper Com pany of H um boldt,
Nebr., announced th a t th e first q u ar
te r of 1969 w as th e best first q u a rte r
in th e com pany’s 90 y ears of business.
Com pared to th e first q u a rte r of
1968, feed tonnage w as up to 36.6 per
cent, n et profit before taxes w as up
68.9 per cent, th e c u rre n t ratio rose
from 2.33 p er cent to 2.54 p er cent, net
w o rk in g capital increased from $1,198,000 to $1,813,000.
Com pared to A pril 1 of 1968 the
n um ber of stockholders is p resen tly
up 30 per cent.
The H am m ond Mills of O klahom a
City, acquired in J a n u a ry of this year,
has operated profitably each m onth
th is year.
P la n t efficiency in H am m ond Mills
has already been increased by 10 per
cent and a fu rth e r increase of 40 per
A
cent is anticipated by October 1, w hen
the p lan t rem odernization w ill be com -x T~
pleted.
93
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E Trust
C o m p a n y o f Li ncol n
12th & N Street —Lincoln, Nebraska 68501 —Phone: 402-477-4455
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
N o r th w e s te r n B anker, J u n e , 1969
94
T en an ts of th e Congress H otel B uild
ing are p rep arin g to move th e ir bu si
nesses, and w ill be out in tim e for
dem olition to begin on Septem ber 1.
H aw kins C onstruction Com pany is th e
general contractor.
O m aha N ew s
*
*
RANK O. STARR, 47, has been
elected president, chief operating
officer and a directo r of The Omaha
N ational Bank, it w as announced last
m onth by M o r r is F . M i ll e r . Mr. S ta rr
assum ed his duties d u rin g May. Mr.
Miller, w ho has been p resident, w ill
continue as ch airm an of the board and
chief executive officer.
Mr. S ta rr m oved to Om aha from
D etroit w h ere for th e p ast tw o and
one-half y ears he
s e r v e d as vice
p r e s i d e n t in
charge of bran ch
offices. In th is po
sition he w as re
sponsible for the
o peration of 100
b ran ch offices em
p l o y i n g more
th a n 1,600 people.
He also served on
F. o . S T A R R
N ational B a n k ’s
operating com m ittee and th e com m it
tee on perso n n el m anagem ent. He
joined th e b an k five y ears ago.
P rio r to his affiliation w ith th e De
tro it bank, Mr. S ta rr w as executive
director of Blue Shield in M ichigan.
He sp en t 10 y ears in federal govern
m en t service earlier, th e last tw o posi
tions being C om ptroller of th e V eter
ans A d m in istratio n in W ashington, D.
C., and regional directo r of th e Office
of Civil and D efense M obilization.
Mr. S ta rr w as a N avy pilot in W orld
W ar II. A n ativ e of M ontrose, S. D.,
he has B.A. and M.A. degrees in ac
counting from S tray er College, a p ri
vate business school in W ashington.
Mr. S ta rr has been v ery active in
w ork on com m unity problem s. He
has been a Sunday School teach er and
ch airm an of th e special facilities task
force com m ittee in his church, th e R e
organized C hurch of Jesu s C hrist L at
te r Day Saints.
Mr. S ta rr is m arried. H is w ife and
four of th e ir six sons w ill m ove to
Omaha as soon as th e c u rre n t school
term ends. A no th er son is a law stuN o rth w e s te rn Banker, Ju n e , 1969
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
d en t at th e U n iv ersity of M ichigan,
and one is a N avy ensign.
^
^
^
TV auto banking facilities on the
n o rth w e st corner of 20th and F arn am
w ill become p a rt of th e new, m u lti
m illion dollar full-service b an k stru c
tu re being bu ilt by the U nited States
N ational B ank of Omaha on th e east
side of 20th S treet betw een Douglas
and F arn am .
U. S. N ational P resid en t E d w a r d W .
L y m a n announced th a t th e bank re
cen tly p u rchased the 7,200 square foot
co rn er lot w hich is presen tly occupied
by th e C ongress H otel Building. A
four-station auto drive-up w ill be com
pleted on th a t corner by the tim e the
new four-story b an k stru c tu re is
read y for occupancy in early 1970.
Drive-in custom ers w ill en ter th e area
from F a rn a m S treet and w ill exit onto
20th Street.
A ccording to vice p resid en t and
p roject ch airm an Ja c k E d d y , the con
v en ien t TV drive-up facility wTill sup
plem ent the th ree park-and-walk-up
b an k w indow s located across the
stre e t on th e F arn am S treet level of
th e m ain building. H ere custom ers
can p a rk and w alk to a m anned teller
area only a few feet away.
-< -
*
D a in , K a lm a n & Q u a il, In c o r p o r a te d
F
\
has extended its in v estm en t b anking
business into a seventh M idw estern
state by acquiring the assets and p e r
sonnel of J . C lif f R a h e l a n d C o m p a n y ,
th e larg est Omaha-based in vestm ent
firm. T he acquisition has been ap
proved by directors of both com panies
to becom e effective Ju n e 30.
Dain, K alm an & Quail w ill assum e
operation of R ahel offices in Omaha
and Lincoln, Nebr., and Sioux City,
Iowa. R esident m anagers, sales p e r
sonnel and o ther em ployees a t the
th ree offices w ill join Dain, K alm an &
Quail. C lif f R . R a h e l said his plans
are indefinite.
J. Cliff R ahel & Com pany w as
founded in O m aha in 1958 by J . C lif f
R a h e l and his son, C lif f R . R a h e l. It
has 50 em ployees and a full range of
financial services.
W lie e lo c k W h i t n e y , chief executive
officer of Dain, K alm an & Quail, called
the R ahel acquisition “a logical ex
tension of our regional concept in a
com patible new m ark et.”
In its in v estm en t b an king and reseach activities, Dain, K alm an & Quail
concentrates on com panies h ead q u ar
tered in th e M idw est region. Mr.
W hitney added th a t Dain, K alm an &
Quail in tends to expand coverage
th ro u g h o u t the state of N ebraska.
Dain, K alm an & Quail, Incorporated
w as created in 1967 w ith th e m erger
of J. M. Dain & Company, Inc. and
K alm an and Company, T w in Citiesbased firms, and th e purchase of
Quail & Company, Inc., an Iow a firm.
W ith the addition of th e th ree R ahel
locations, Dain, K alm an & Quail now
DESIG-N fo r U n ite d S ta te s N a tio n a l’s d riv e -in fa c ility .
A
<
Y
<
A -—
r
95
Coming this
month:
backed by more than
1,000 banks
and honored by more than
400,000 merchants
coast-to-coast.
@
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
The O m aha N atio n al Bank
N o r th w e s te r n Banker, Ju n e , 1969
96
Nebraska News
has 20 offices in seven states—M inne
sota, Iowa, N orth and South Dakota,
M ontana, W yom ing and N ebraska.
The firm has 475 em ployees and holds
m em berships in th e New York, A m er
ican, M idw est and Pacific Coast Stock
Exchanges.
M r s . J e a n C a ry , senior officer assist
a n t at th e F irs t N ational B ank of
Omaha, is th e new ly elected p resid en t
of th e C redit W om en’s G roup of Oma
ha, afte r h aving served as tre a su re r
for th e p ast year.
p resid en t of C enter Bank. The
Council is composed of about 20 Oma
ha Senior Citizen organizations. J e r r y
D . P a r k s of th e Omaha P a rk s and
R ecreation D epartm ent is th e coordi
n a to r of the Senior Citizens R ecrea
tional P rogram , w hich w as set up
w ith a federal g ra n t u n d er Title IV.
le y ,
*
L.
*
=i= *
T he Senior Citizens Council last
m onth p resen ted a certificate to offi
cials of th e C enter B ank for offering
“w ith a sm ile” free checking accounts
to Senior Citizens (see special featu re
in th is issue giving details of th is
program ).
A u b r e y A lle n , Council president,
presen ted th e aw ard to R a y E . S ta n
*
E n g e ls ,
*
Mrs. C ary has been active in the
W om en’s D ivision of th e O m aha C ham
ber of Com m erce, serv in g on th e
board of directo rs for th e last th re e
years. H er experience w ith F ir s t N a
tional B an k covers several y ears in
th e credit d e p a rtm e n t of th e bank.
She has also been active in public rela
tions and a d v ertisin g as w ell as corre
spondent b an k w ork.
*
41, has been
elected vice presid en t of the C enter
B ank and w ill take over his new du
ties Ju ly 1. Mr. E ngels w ill also be
a m em ber of th e board of directors.
He is c u rre n tly presid en t of th e N o rth
w e ste rn N ational B ank at H astings,
Minn., w here he has served eight
years. Both banks are affiliated w ith
th e N o rthw est B ancorporation.
B e rn a rd
D o n a ld J . M u r p h y , president, and
the directors of the Stockyards N ation
al B ank announced th e election of
E d w a r d G . M i ll e r , J r., vice p resid en t
of E d M iller and Sons, Inc., and T r a v is
*
*
T he City Council of Omaha recently
adopted a resolution designating the
p ro p e rty on w hich th e new F i r s t N a
t io n a l B a n k building is being con
stru c te d as F irs t N ational Center.
The Council resolution cited th is as
“th e biggest single im provem ent in
th e h isto ry of dow ntow n O m aha” and
said “th e F irs t N ational B ank of Oma
ha . . . has been in stru m e n ta l in se
cu rin g . . . a big, m odern H ilton H otel”
w hich is being erected in conjunction
w ith th e b ank center.
T he Council earlier approved the
closing of S ixteenth S treet betw een
Dodge and Capitol, a m ain north-south
th o ro u g h fare at th e n o rth edge of the
im m ediate dow ntow n business sec
tion. The Om aha po stm aster has also
agreed to recognize th e b a n k ’s address
as F irs t N ational C enter for m ailing
purposes.
*
*
*
F irs t Security G row th F und, Inc., of
Om aha passed an o th er m ilestone re
cently as it surpassed th e $3,000,000
m a rk in n et assets. C h a rle s F . H e id e r ,
p resid en t of th e fund, said th e m onth
ly grow th has averaged m ore th an
one-half m illion dollars since it w as
organized last Septem ber.
E . M I L L E R , JR.
T . C. E V A N S
C. E vans, group m anager of Sears
R oebuck and Com pany area stores, to
serve as m em bers of th e board.
*
*
*
W ils o n
N o rth w e s te rn
Banker,
June,
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
7969
*
*
Two m em bers of The U nited States K ^
N ational B ank staff w ere honored re
cently as recipients of th e T en th A n
nual D istinguished S alesm an’s A w ard
w hich is sponsored by th e Omaha
Sales and M arketing E xecutives, Inc.
T hey are J a y B o r d e w ic k , vice presi
den t and m anager of th e correspond
e n t ban k division, and Jess Z im m e r
m a n , assistan t vice p resid en t and cor *
resp o n d en t ban k rep resen tativ e. T hey
w ere cited for excellence in th e ir abil
ity to handle all types of selling sit
u ations and w ere presen ted fram ed
plaques to com m em orate th e aw ards.
*
P IC T U R E D a t a w a rd s cerem ony a re , l e f t to r ig h t: R o n a ld N o lle tte , a.v.p., C e n te r B a n k ;
G eorge de G eorge; L y le D eM oss, O m aha ra d io a n n o u n c e r; R a y E . S ta n le y , pres, o f C en
te r B a n k , a n d M rs. D o ris J .C apps, h o ste ss a t C e n te r B a n k .
*
N ew ly elected officers of th e Omaha
C hapter of th e A m erican In stitu te of
B anking for 1969-1970 are:
P resident, A1 S c h m id , C larke B ank
of Papillion.
Vice P resid en t M i k e B r a d y of the
Stockyards Na
tional Bank.
Treasurer,
J a m e s R o b e rts of
th e W est Omaha
N ational Bank.
Secretary, D o ris
J . Capps of Cen
te r Bank.
T he four new
board of governor
m em bers elected
A. J. S C H M ID
a t th e A IB
Spring D inner Dance include: C a ro l
W h it t e d of th e Stockyards N ational
Bank, Mrs. Capps, B r u c e J o n e s of the
F irst N ational B ank of Bellevue and
D a v id
K o e n ig s m a n
of th e U nited
States N ational Bank.
&
*
r
*
Chicago, r
of T u f t y
Omaha, i t k>
C o m p a n y , In c .,
has p u rchased
th e
assets
M a n u f a c t u r in g
Com pany,
w as announced by R o y V . E d w a r d s ,
W ilson presid en t and chief executive
officer.
Tuffy produces equipm ent th a t auto-
^
,
Nebraska News
-)
97
Stibium Cuit inf/ Opens New Hunts in H entriee
'T
>
jy
>
A S S IS T IN G in th e rib b o n c u ttin g o f th e B e a tric e (N e b ra s k a ) S t. B k . a re l e f t to r ig h t: R ic h a rd H o v e n d ic k , p res, of th e B e a tric e
C h a m b e r of C om m erce; R o g e r B u h rd o rf, exec. v.p. a n d m a n a g in g off.; P . H . K o llek o w sk i, p re s, o f th e B e a tric e C ity C ouncil, a n d
W . W . Cook, p res. A lso p ic tu re d is th e officer a re a o f th e new B e a tric e S t. B k.
IT H th e official ribbon c u ttin g on
May 14, th e B eatrice S tate B ank
held its gran d opening. L ocated in th e
In d ian Creek Shopping C enter at th e
n o rth edge of B eatrice, it is th e th ird
b an k in th e city.
The b an k is c u rre n tly leasing ap
proxim ately 3,500 squ are feet of space
w ith an option to lease an additional
600 squ are feet. F ive teller cages are
located on th e south side of th e lobby
and th e officers’ desks are on th e n o rth
side. The b an k has an en tran ce from
th e p ark in g lot and a m ain en tran ce
W
off th e spacious m all area. A drive-in
w indow is located on th e p ark in g lot.
Of m odern design, th e en tire b an k
area is carpeted. W alls are covered
w ith wood g rain paneling and vinyl
paneling. B rig h t colors accent th e
lobby area.
Officers of th e b an k are W. M. Cook,
president; R oger B uhrdorf, executive
vice p resid en t and m anaging officer,
and Dan E lsem an, a ssistan t vice presi
dent. Mr. Cook is also ch airm an of
th e board of th e B eatrice N ational
B ank & T ru st Company.
6 0 th A nniversary
Lisco S tate B ank at Lisco w as
founded 60 y ears ago, opening for busi
ness May 20, 1909. I t has been in con
tinuous operation u n d er th e sam e
nam e and sam e c h a rte r since its open
ing. An open house w as held to m a rk
th e occasion.
Officers of th e b an k are H arold B.
Olson, ch airm an and president; T hom
as H. Olson, executive vice president;
H elen Y. Olson, vice president; W il
liam K. Vogler, cashier, and H elen
F rench, a ssistan t cashier.
A
m atically feeds baby pigs d u rin g th e
. th re e critical w eeks follow ing birth .
T his equipm ent, sold u n d e r th e trad e
nam e “P ig M am a,” enables th e p ro
ducer to in crease th e n u m b er of sur* v iving pigs in a litte r and th e n u m b er
of farro w in g s possible each year,
y
W ilson & Com pany, Inc., is a subji sid iary of Ling-Temco-Vought, Inc.,
Dallas, Tex.
*
*
*
O m aha’s 15 c o m m e r c i a l b anks
f show ed a to tal deposit increase of $61
m illion on A pril 30 com pared to th e
-y sam e date a y e a r ago. D eposit and
loan figures for th e b an k s are show n
f
below for A pril 30, 1968 and 1969.
D e p o s its
1969
Omaha N a t’l ............. ...... $324,054,880
F irs t N atio n al .... ...... 173,167,788
TJ.
S. N a tio n a l........ ...... 155,930,057
Stocky’ds N a t’l .... . ...... 50,594,435
Center ......................... ...... 29,118,390
1st Westside ............... ...... 26,529,084
Douglas County ...... ...... 23,048,193
N o rth Side ................. ...... 21,655,235
Southwest ................... ...... 17,759,964
Packers N a t’l ...... ...... 16,272,580
Security N a t ’l ........... ...... 12,128,485
W . Omaha N a t’l - .... ...... 10,245,220
Ames P laza ............... ......
8,735,139
F irs t Westroads ....... ......
4,149,905
M id C ity ..................... ......
2,249,650
1968
$301,795,334
163,326,976
151,908,873
45,951,585
26,299,603
21,649,345
21,305,141
19,831,665
14,846,845
15,594,471
12,363,975
8,162,129
7,564,334
2,234,495
1,723,350
Totals ................. ...... $875,639,014
$814,558,121
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Loans
1969
Omaha N a t’l .......... ........ 193,777,475
F irs t N a t’l ............... ......... 104,219,798
U . S. N a t’l ............... ........ 110,661,575
Stocky’ds N a t ’l ...... ........ 33,750,200
Center ....................... ........ 20,293,087
1st Westside ............ ....... 18,942,374
Southwest ................. ........ 13,150,757
Douglas County ..... ........ 12,535,638
N o rth Side ................ ........ 12,243,944
Packers N a t’l ......... ........
7,984,466
Security N a t’l ......... ........
6,727,872
West Omaha N a t ’l..........
5,751,325
5,715,221
Ames Plaza .......... ........
F irs t Westroads ..... ........
3,364,510
M id C ity .................... .......
1,774,512
1968
174,339,459
98,476,516
96,917,289
28,139,351
16,257,464
14,329,308
10,576,407
10,873,788
13,712,763
5,372,012
7,402,510
3,968,230
4,679,360
850,896
1,234,937
Totals............................ $550,892,754
$487,130,300
*
*
*
The Om aha N ational B ank is now
providing com puter accounting of live
stock feeding operations. T his cus
tom er service is fully operational and
installed on a large feedlot in th e
Om aha area.
Basically, the system provides a
custom er billing, all p e rtin e n t com
m odity consum ption figures, p ro fit/
loss analysis, and in v en to ry control
rep o rtin g . E v en though th is does re p
re se n t fairly sophisticated accounting
techniques, th e operational end of th e
pro g ram is easily understood and sim
ple to w o rk w ith, according to J o h n T .
M a r c e ll, second vice president.
F irs t N ational B ank of Omaha w as
host last m onth at th e F irs t A nnual
B ankA m ericard Sales and M arketing
Sem inar for b an k executives. The
keynote speaker w as D . R . M c B r id e ,
presid en t of th e B ankA m ericard Serv
ice C orporation, San Francisco.
S e v e r a l m em bers rep re se n ta tin g
agent banks of F irs t N ational’s B an k
A m ericard p rogram conducted a panel
discussion of th e ir successes and com
m on problem s.
Included
o n th e panel w ere T . M .
R e a r d o n , chairm an, W e s t e r n
Bank, Sioux Falls, S. D.; D o n H e a ly ,
business developm ent officer, F i r s t
N ational Bank, M arion, Iowa; R u s s
M a k e e v e r , vice president, F irs t N a
tional Bank, D avenport, Iowa; D . D a le
B r o w n in g , assistan t vice presid en t and
(T o m )
m anager, Rocky M ountain B ankA m er
icard Center, Denver, and B o b M e is in g e r, m ark etin g officer, F irs t N ation
al B ank of Omaha.
Joins Paw nee City Bank
Joe H einem an, p resid en t of th e
Paw nee County B ank at Paw nee City,
has announced th e addition of Jim
Booth of Troy, Kan., to th e b ank staff.
N o r th w e s te r n Banker, J u n e , 1969
98
i (¡§ | '
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-
ips^
» f ilili
-
Which way
w ill you move on
EDP services ?
N ot an easy question to answer! Sure, Electronic
Bookkeeping service is glamorous and in the future
fo r many banks. But, is it in your bank's future?
Bankers Trust has a highly sophisticated computer
system. A number o f our correspondents are using
it fo r demand deposits, savings, and time certificate
processing. They like the efficiency. They like the
superior service. They like the reduction in operat
ing costs.
But we know that EDP is not a good move for every
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W e put our top talent on the survey, men like Jay
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CORRESPONDENT BANK DEPARTMENT
HOMER JENSEN
Vice President
GARY STEVENSON
Correspondent
Bank Officer
COMPUTER SERVICES
O. JA Y TOMSON
Vice President
PAUL GRIFFITH
Assistant Cashier
Bankers Trust co.
SIXTH AND LOCUST. DES MOINES
Member: F.R.S. a F.D.I.C.
N o r th w e s te r n Banker, Ju n e , 1969
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Federal Reserve Bank of St. Louis
99
Iow a
N E W S
J. W . UPTO N , JR.
President
A . E. LINDQUIST, JR.
Secretary
Ida Grove
Des Moines
A nnounces Candidacy fo r
IBA Vice P residency
Jam es H. Redm an, p resid en t of th e
S tate B ank, F o rt Dodge, has an> nounced his candidacy for th e office of
vice presid en t of th e Iow a B ankers
A ssociation for th e election to take
place at th e IBA convention th is fall
in Des Moines. If
elected, Mr. R ed
m an w ould be in
line for advance
m en t to th e p res
idency of th e ss o c i a t i o n at th e
1970 convention.
Mr. R edm an is
a w ell-know n fig
u re in Iow a banki n g h a v i n g
J. H. R E D M A N
w o r k e d actively
as an Iow a b an k er for m any years
and also holding a top position in th e
Iow a d ep artm en t of b an k in g for sev
eral years.
He w as born in Buffalo, Minn., b u t
m oved to Sac City, Iowa, w ith his fam
ily at th e age of 3. Mr. R edm an’s
fa th e r w as p a rtn e r in a cream ery
th e re for m ore th a n 30 years. A fter
com pleting his p rim ary and secondary
education in Sac City schools, g rad u
atin g in 1929, Mr. R edm an enrolled at
D rake U niversity in Des Moines.
P rio r to th e s ta rt of his th ird year
at D rake, A. W. Jones w as organizing
a new b an k in C orrectionville and
asked Mr. R edm an to tak e th e position
of a ssistan t cashier. He rem ained at
C orrectionville u n til 1938, at w hich
tim e he m oved to Indianola w here he
h ad p u rchased a cream ery and oper
ated it for several years.
In 1943 he joined th e Iow a banking
d ep artm en t as assistan t exam iner and
w as rap idly prom oted to exam iner
and a ssistan t to th e su p erintendent.
He left th e d ep artm en t in Jan u ary ,
1949, upon p u rchasing control of F irs t
N ational B ank in Glidden. In 1954 he
H old Open House for i*ublic
becam e presid en t of N evada N ational
Bank, th en in 1958 m oved to Ja n e s
ville, Wis., as executive vice president
of M erchants and Savings B ank. The
group he w as w ith organized an affili
ated bank, th e B ank of Janesville, and
he w as elected presid en t of th is new
bank, serving both in stitu tio n s in a
dual capacity.
Mr. R edm an re tu rn e d to Iow a in
1964 upon accepting th e presidency of
th e State B ank of F o rt Dodge, a 35year-old in stitu tio n w ith $25 m illion in
deposits.
Special R epresentative
Nam ed at W aterloo Bank
R. L. Kilgore, presid en t of th e N a
tional B ank of W aterloo, has an
nounced the ap p ointm ent of W. R.
(Bill) D unkle as special re p re se n ta
tive for the N a
t i o n a l B ank of
W aterloo. In his
position, Mr. D un
kle w ill be respon
sible for business
developm ent and
c u s to m e r r e l a
tions.
F o r th e p ast 13
years, Mr. D unkle
has s e r v e d as
w. r. d u nk le
p resident o f Dunk le’s Foodland, culm inating a 30-year
career in the grocery business.
independence
OVER 3,000 v is ito rs a tte n d e d th e open house h e ld la s t m o n th a t th e n e w ly re m o d e le d Farm ers St. Sav. Bk. in In d e p e n d e n c e . E x te rio r
— o f th e b a n k ( l e f t ) , re c e iv e d a com plete fa c e l if tin g . I n te r io r of m a in b a n k floor ( r i g h t) , fe a tu re s a n offset c o u n te r a rra n g e m e n t h ig h
lig h te d b y lig h t-c o lo re d m arb le a n d w o o d -g ra in e d F o rm ica .
P E N house w as held last m onth
a t th e new ly rem odeled F arm e rs
S tate Savings B an k in Independence.
> T he over $200,000 rem odeling p roject
began in M arch, 1967, and has m ore
■;*- th a n doubled th e size of th e b an k by
expansion into an adjoining building.
The m ain floor of th e b an k is occui
pied by te lle r statio n s and offices,
A drive-up and w alk-up w indow s and
O
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v a u lt and custom er service desks.
T h ere are also privacy booths for use
by custom ers w ho have one of m ore
th a n 1,300 new safety deposit boxes.
An elevator and cen tral air condition
ing also have been installed.
E x te rio r rem odeling includes black
siding and alum inum grille w ork, new
ly designed signs on tw o sides of the
build in g and a tim e and tem p eratu re
sign.
The basem ent floor of th e stru c tu re
is devoted to th e bookkeeping d ep art
m en t of th e b an k and em ployees’
lounge and restroom s, as w ell as a
record storage and supply room.
The b ank has been in operation for
48 years. R udolph A. Leytze c u rre n t
ly serves as presid en t and P ercy Sorg
as executive vice president.
Northwestern Banker, June, 1969
100
it»ira Trea su rer iHseusses
in vestm en t of id le Funds
By Maurice E. Baringer,
Treasurer of State,
State of Iowa
(Delivered at Iowa Bankers Group
Meetings, May, 1969.)
H E tre a s u re r of state has m uch
in com m on w ith a b anker. E ach
m u st m eet his obligations on tim e
and, therefo re, m u st m ain tain ade
quate liquidity. E ach m u st in v est idle
funds so as to in su re a m axim um re
tu rn for his co n stitu en ts — w h e th e r
stockholders or taxp ay ers. A nd each
m u st tak e a keen in te re st in th e eco
nom ic and social developm ent of his
“com m unity.”
T
If our only goal is to ea rn as m uch
in te re st as possible on idle sta te funds,
th ere really is no contest. The state
c u rre n tly earn s 6-7 p er cen t on idle
funds, in v estin g day by day in sh o rt
term g o v ern m en t obligations. F u r
th er, w e earn th is ty p e of re tu rn on
th e full am ount in question, because
we have no legal reserv e re q u ire
m ent.
Total R eturn A nother M atter
If, on th e o th er hand, w e are look
ing at to tal re tu rn on in v estm en t for
th e state of Iowa, w e are talk in g about
som ething else. W e can continue to
in v est as w e do to m ain tain necessary
safety and liquidity. Then, w hen
funds are tru ly “idle”—th a t is, are
not needed to m ain tain liquidity—the
tre a su re r could and, in our opinion,
should consider re-investing in tim e
deposits in Iow a’s b an k in g system ,
and, hence, in th e Iow a economy. W e
now have m ore th a n $48 m illion invsted in gov ern m en t notes and bonds.
W ith th is am o u n t h av in g been in
vested in relativ ely long-term U. S.
g overnm en t notes and bonds d u rin g
th e p ast th re e years, liq u id ity obvi
ously has n o t been a problem w here
these funds w ere concerned. F u rth e r,
unless th ese secu rities are held to
th e ir respective m atu rities, Iow a taxpares ru n th e risk of m a rk e t losses,
should th e need to sell th em arise.
In a spot-check of th e m ark et, as of
A pril 10, 1969, th ese sta te in v estm en ts
w ere dow n $1 m illion in value and th e
average yield to th a t date w as a m ere
4.30 per cent. On th e oth er hand, if
w e can hold th em to m atu rity , th e
average yield w ill be 5.38 p er cent.
W e are inclined to question th e advisHorthwestern Banker, June, 1969
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Federal Reserve Bank of St. Louis
ab ility of th is type of long-term in v est
m en t because it takes m oney out of
Iowa. The sam e $48 m illion, had it
been invested in b an k tim e deposits
a t th e p revailing rates, at prevailing
frequencies of com pounding in te re st
and for th e sam e lengths of tim e
w ould have yielded 5.47 p er cent. So
Iow a gained no th in g by investing in
th is m anner; and th e m oney w as lost
to th e ban k in g system and to th e
Iow a economy.
M ultiplier E ffect
W e don’t feel th e need for any
len g th y debate over th e fam iliar “m u l
tip lie r” effects th a t re su lt from deriva
tive b an k loan deposits. A ny econom
ic advisor to an y F ed eral R eserve
B ank can a tte st eloquently to th e m ul
tip lier effect. Dr. C hester Phillips,
dean em eritu s of th e College of B usi
ness A dm inistration, U n iv ersity of
Iowa, is m ost lucid in his explanation
of how th is w orks. Dr. Lew is E. Da
vids, H ill P rofessor of B ank M anage
m en t a t th e U n iversity of M issouri,
explained it fully in th e A ugust, 1966,
issue of N o r t h w e s t e r n B a n k e r . W e
are im pressed th a t our sister state Mis
souri relies heavily on its b an king
sy stem for in v estm en t of idle funds.
W e are im pressed, too, th a t Illinois
finds th a t a relativ ely m odest in te re st
earn in g s figure from b an k deposits,
coupled w ith sales and other ta x rev e
nues re su ltin g from in v estm en t of idle
funds in Illinois banks, produces m ore
incom e for th a t state th a n a program
of in v estm en ts in th e g overnm ent se
cu rities m arket.
R ate In crease
W ith the rates Iow a banks now can
charge th e ir custom ers increased from
7 to 9 p er cent, we feel th a t m ore
m oney w ill stay in Iow a as w ell as
m ain tain a com petitive position for
in v e stm e n t by financial in te re sts out
side of Iowa.
W ith reg ard to th e rates banks m ay
pay for sta te deposits, we believe the
rate-settin g p r o c e d u r e should be
changed and th a t w e should d irect all
n ecessary efforts to liberalize th is rate
. . . so th a t an y Iow a bank, indicat
ing a sincere in ten tio n to in v est state
funds in its com m unity, can have ex
cess reserv es available to expand its
lending capacity.
W h e th e r a com m ercial b an k is large
or sm all, it is th e one in stru m e n t in
its com m unity th a t can create new
m oney . . . by lending.
R ealignm ent A nnounced
At D en ison Bank
The board of directors of th e F irs t
N ational B ank of D enison has an
nounced th e election of Joseph G.
Vaage as president, R onald H avlik as
vice p resid en t and cashier and George
E v ers as a ssistan t vice president. Mr.
Vaage replaces T. C. A arestad w ho
retire d as presid en t on Ju n e 1, b u t w ill
continue on the b a n k ’s board of direc
tors.
Mr. A arestad steps dow n from a very
active career as a D enison b an k er aft
er 44 y ears of
service. B orn in
H alstad, Minn., he
cam e to Denison
from G rafton, N.
D., in 1941 and be
cam e presid en t of
th e F irs t N ational
in Ja n u a ry , 1947.
He has com pleted
40 y ears of serv-^
ic e w i t h t h e
T. C. A A R E S T A D
N o r t h w e s t B anC orporation B anks. Most recently
Mr. A arestad ’s activities outside the
b ank have been chiefly concerned
w ith M idw estern College.
VAAGE
HAVLIK
EVERS
A
Mr. Vaage is a 1950 grad u ate of ^
St. Olaf College in N orthfield, Minn.,
and w orked for th e exam ination de- l
p a rtm e n t of th e N o rthw est Bancorporatio n upon his graduation. In 1955, *~
he m oved to D enison w here he w as
elected cashier of th e F irs t N ational "" ~
and in 1968 w as appointed vice p resi
dent and cashier, as w ell as a m em ber
of th e board.
Mr. H avlik is a n ative of Cedar R ap
ids and joined th e credit dep artm en t
of th e N o rth w est B ancorporation of
M inneapolis in 1960. He w as elected
a ssistan t vice presid en t of the State
B ank of V irginia, Minn., in 1963 and
came to D enison in 1968, w here he
has since served as a ssistan t vice p res
ident.
x
Mr. E v ers is a native of St. Jam es,
Minn., and has served w ith th e F irs t
N ational since 1965. He w as w ith
P roduction C redit A ssociation for tw o
and a half y ears before joining the
Denison bank.
101
f
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demand deposit accounting, direct on-line savings, and auto
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whole lot more, too. Just ask the National Bank of Waterloo
about their computer service for other area banks and cus
tomers. After all, a good punch in the card never hurt anybody.
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WATERLOO, IOW A 5 0 7 0 4
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Federal Reserve Bank of St. Louis
Northwestern Banker, June, 1969
102
G-ROUP 4 m e e tin g in E lk a d e r w as p la n n e d b y Mr. and M rs J. E. Shaffer, exec, v.p., C e n tra l S ta te B a n k , E lk a d e r; R. M. McQueen,
chm n. of G roup 4 a n d v.p. & cash., F a rm e rs S ta te , B id eg w ay , a n d Secy. R. E. Tool, F a rm e rs & M e rc h a n ts S a v in g s, M a n c h este r.
R IG H T — N e w officers of G roup 7, e le c te d in C ed ar R a p id s, w e re : Chm. D onald N oller, p re s., F i r s t N a tl., E v a n s d a le ; a n d Secy. R. EC
Tool, F a rm e rs & M e rc h a n ts S a v in g s, M a n c h e ste r. R IG H T — N ew officers o f G roup 7, e le c te d in C e d ar R a p id s, w e re : Chm . Donald
N oller, pres., F i r s t N a tl., E v a n s d a le ; a n d Secy. A. V. D ieken, p res., F a rm e rs S a v in g s, G ru n d y C en ter. IB A Secy. A rt L ind quist t
is show n a t rig h t.
____________________________________________
N ew Group Officers
Group 3—C hairm an, A lbert L.
Group M eetings D raw Dig
By MALCOLM FREELAND
Publisher
NNUAL group m eetings for th e
A
Iow a B an k ers A ssociation w ere
w ell atten d ed last m o n th despite ad
verse w e a th e r conditions on several
of th e days m eetings w ere scheduled.
T he tra v e lin g co n tin g en t composed
of IBA officials, pro g ram speakers and
co rresp o n d en t b a n k rep resen tativ es
from n u m ero u s city b anks all had an
op p o rtu n ity to tr y th e ir d riv in g skill
on rain y highw ays.
M aurice Baringer, T re a su re r of the
State of Iow a, addressed each of th e
group m eetings and his rem ark s are
rep orted in a special su m m ary on an
adjoining page.
John Chrystal, w ho w ill retire Ju n e
30 as Iow a su p erin ten d en t of banking,
review ed Iow a b an k in g developm ents
th a t have tak en place in his five years
in office, noting especially th e m arked
change in deposit m ix th a t has re
su lted in all banks since changes w ere
m ade in R egulation Q.
He re ite ra ted his feeling expressed
at th e tw o group m eetings held earlier
in th e year, G roups 1 and 11 at Sioux
City and B urlington, th a t a b an k h av
ing an office in a com m unity should
n o t have to close it if an o th er group
comes in w ith a b ank ch arter. To
illu stra te his point, he announced at
Morse, executive vice president,
Home T ru st and Savings Bank,
Osage; secretary, H arold M. W al
ton, vice president, F irst N ation
al B ank, M ason City.
Group 5—C hairm an, R aym ond
Graalfs, a ssistan t vice president,
State B ank and T ru st Company,
Council Bluffs; secretary, W in
field S. M ayne, president, M ont
gom ery County N ational Bank,
Red Oak.
Group 7 — C hairm an, Donald E.
Noller, president, F irs t N ational
Bank, Evansdale; secretary, A. V.
Dieken, president, F a rm e rs Sav
ings Bank, G rundy Center.
Officers for e v e n - n u m b e r e d
groups are elected in even-num
bered years. New officers for
Group 1 and Group 11 w ere elect
ed in F e b ru a ry and rep orted in
the M arch issue.
L A D IE S ’ L U N C H E O N a t G roup 8 in M u s c a tin e w as h e a d e d b y Mrs. Jam es W. L ipton, w ife o f IB A p re s id e n t; Mrs. Jack
R igler, w ife of pres, o f C e n tra l S ta te B a n k , M u sc a tin e , a n d Mrs. G eorge Sh epley, w ife of pres, of F ir s t N a tl., M u sc a tin e . R IG H T
— Mrs. C hristy A rm strong, le f t, w ife of exec, v.p., A m e ric an T&S, D u buque, is show n w ith la d ie s a tte n d in g G roup 4 m eeting-«
in E lk a d e r.
Northwestern Banker, June, 7969
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Federal Reserve Bank of St. Louis
103
Are you taking advantage
oTSpread Banking?"
- Y
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r
Y
y
V
Ask
your La Salle man in Iowa,
how it can add to
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Your good friend on the financial main street of Mid-America
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Federal Reserve Bank of St. Louis
N o rth w e s te rn
B anker.
June,
1969
104
Iowa News
L E F T Jam es H . Redm an, p re s., S ta te B a n k , F o r t D odge, w ho h a s a n n o u n c e d h is c a n d id a c y fo r th e office of v ice p res, of th e Io w a
B a n k e rs A sso c ia tio n a t th e e le c tio n th is f a ll, p ic tu re d w ith Luin B. Cox, chm n. of Gp. 2 a n d exec, v.p., F i r s t S ta te B a n k , B elm o n d ;
R IG H T — R aym ond G raalfs, new cgm n. of Gp. 5 a n d v.p., S ta te B a n k & T ru st, C ouncil B luffs, w ith W infield S. M ayne, new secy, of *
Gp. 5 a n d p res., M o n tg o m ery C o u n ty N a tl., R ed O ak.
G roup 6 th a t B ankers T ru s t C om pany
of Des M oines had ju s t been g ran ted
th a t w eek a c h a rte r for conversion of
its office in W indsor H eights, a large
su b u rb adjoining Des M oines at th e
n o rth w e st p a rt of th e city.
B ank ers T ru st has o perated th e of
fice in W indsor H eights since A ugust,
1959. W hen an o th er c h a rte r w as
sought recen tly in th a t com m unity,
B ankers T ru st w as first offered th e
o p p o rtu n ity to capitalize its office as
a separate b an k in order to stay in
business th e re and keep th e accounts
it had developed d u rin g th e p ast dec
ade. T his w as done, and the office
th e n had to be sp u n off as a separate
bank. Mr. C h ry stal feels stro n g ly th a t
offices should be p erm itted to rem ain
in a com m unity w here th e b an k has
done all th e w o rk to develop a b an k
ing business and not be forced to
close up and w alk off because som eone
else w an ts a c h a rte r there.
In reg ard to agricu ltu re, he th in k s
Iow ans b e tte r not look to foreign m a r
k ets for sales of surplus. He stated
th a t adoption of w e ste rn cu ltu re farm
ing techniques, developm ent and use
of b ette r hybrids, and m ore p ro g res
sive over-all a ttitu d e s of farm in g are
rap id ly increasing food o u tp u t in n a
tions w h ere w e w ere only recently be
ing p u shed h a rd to help w ith our su r
plus. He states th a t increased costs
w ill co n tinually m ake it necessary to
have larger farm u n its here in the
m idw est, o perating on low er m argin
w ith g re a ter production.
He decried th e lack of dollar pro
duction available to large farm land
ow ners. As an exam ple, he cited a
$370,000 ow nership of one section th a t
could produce $80,000 in corn. A bout
$200,000 could be borrow ed, he said,
ag ain st th e land, leaving $170,000 of
equity producing only $80,000; w h ere
as, in ju st about any in d u stry , th a t
kind of equity w ould produce m illions
of dollars in sales. F arm ing, he said,
has too m uch equity.
He p redicts a difficult tim e ahead for
sm all b anks to acquire deposits and
capital. “T his leads me to conclude,”
he said, “th a t w e w ill have a sm aller
n u m b er of banks.” He said th a t fa r
sightedness on th e p a rt of th e Iowa
B an k ers A ssociation leadership 40
y ears ago has provided a m eans of
com bining banks and re tain in g service
offices in those com m unities needing
a lim ited facility. This, he states, is a
viable solution obviating th e need for ^
b ran ch banking. In effect, he said,
Iow a has had lim ited branch b an king
th e p ast four years. He th in k s th e in
d u stry should have said four y ears ago ^
th a t p ark in g lot offices could m ake offi- <
cer approved loans and been stra ig h t
forw ard about it, since th is is w h a t is ^
actually being done.
Mr. C hrystal also says some ban k s «.
are not straig h tfo rw ard w hen th ey do
not re p o rt official fam ily debts to su- "*
perv iso ry au th o rities. “These have
been th e source of every single b ank
difficulty since I ’ve been su p erin ten d
en t,” he said, “and I suppose th ey
w ill continue to be.”
*
He th an k ed Iow a b an k ers for th e ir
cooperation d u rin g his five y ears in 4
office, w hich included in au g u ral of a
direct verification program by state
exam iners, and said he appreciated the
“on-the-job tra in in g ” given him in the
banking business.
Collin W. F ritz, w ho w ill succeed
Mr. C hrystal as su p erin ten d en t on a
Ju ly 1, trav eled to th e group m eetings
w ith him. He paid high trib u te to the
w ork accom plished by Mr. C hrystal
We can h e lp y o u . . .
M U N IC IP A L B O N D S
Are you overlooking tax savings on your investments?
F A R M C R E D I T B U I L D I N G - O MA H A
N o rth w e s tern
B anker,
June,
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Federal Reserve Bank of St. Louis
1969
402/345-2241
M USHROOM K IN G — J a y B la c k fo rd , v.p.,
Io w a B a n k e rs A ssn., a n d pres., U n io n B k.,
O ttu m w a, re ce iv e s a sp e c ia l “ a w a rd ” on
m ushroom h u n tin g fro m IB A P re s. Jam es
W. L ipton, exec., v.p. & cash., Io w a C o u n ty
S t. B a n k , Id a G rove, d u rin g g ro u p m e e t
in g s. M r. B la c k fo rd is a re co g n ize d a u th o ri ty on th e a r t of m ushroom ing.
^
^
When It
Comes To
C attle O verlines
Ask Drovers
There's
Never
a
Bum
Steer
During our eig h ty -fiv e years in
Chicago’s stockyards area, we’ve man
aged to round up a healthy herd of live
stock loans. And we’re still going strong. Our
good old honest-to-goodness banking policies
(like never rustlin’ a customer from his local
bank) has really paid off. So, if a customer
from your part of the range should ask us for
a d irect liv esto ck loan, don’t fret—w e’ll
always check with you first for approval.
If you brand it “ok” we’ll lend a hand by *1
extending credit and carrying the paper.
Yep! When it comes to cattle loans, or
any other h elp fu l correspon d en t
service, you can “bet your boots”
M
that D rovers w ill always
steer you straigh t.
The
DROVERS
National Bank of Chicago
47th and Ashland • Chicago, Illinois 60609
Phone: 312 — 927-7000
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
106
Iowa N e w s
GROUP 6— Collin W. F ritz ( l e f t ) , sr. v.p. & t.o. of J a s p e r C o u n ty S a v in g s B a n k , N ew to n , w as e le c te d chm n. la s t y e a r o f Gp. 6 fo r a
tw o -y e a r term . H o w ev e r, he has a c c e p te d a p p o in tm e n t as Io w a s u p e rin te n d e n t o f b a n k in g e ffectiv e J u ly 1, so he s u b m itte d his
re s ig n a tio n as a g roup officer. Mrs. F ritz is n e x t to him , th e n M rs. T aylor a n d D ave Taylor, p res. & t.o., F i r s t F e d e ra l S ta te B a n k ,
D es M oines. M r. T a y lo r w as e le cte d Gp. 6 secy, la s t y e a r a n d a t t h e m e e tin g la s t m o n th w a s also a p p o in te d chm n. fo r th e b a la n ce
of th e term . C E N T E R — Sam M cH ose, chm n., N e v a d a N a tl., N e v a d a ; H arold P. K lein , first sr. v.p., Iow a-D es M oines N a th , D es
M oines, a n d K erm it Anderson, pres., N e v a d a N a tl. R IG H T — A rnold E. P eters, p res., J a s p e r C o u n ty S a v in g s B a n k ; N e w to n ; B. C.
Grangaard, chm n. & p re s., C e n tra l N a tl. B&T, D es M oines, a n d John C hrystal, Io w a su p t. o f b a n k in g , w ho w ill le a v e office J u n e 30
to r e tu r n to Coon R a p id s as p res., Io w a S a v in g s B a n k .
and his staff, as did o th er officials of
th e IBA. Mr. F ritz said he h ad an
o p p o rtu n ity last m onth to p articip ate
in an FD IC sem inar in W ashington,
D. C., at th e in v itatio n of Mr. C hrystal
and found th a t m en from oth er states
w ere discussing the sam e types of
problem s th a t confront th e in d u stry in
Iowa. He feels th a t operation of th e
dual b an k in g system w ill becom e in
creasingly difficult w ith m a tte rs like
R egulation Q, as an exam ple, being
superim posed on th e en tire ban k in g
stru ctu re , th u s b itin g into dual su p er
vision.
Jam es W. U p to n , Jr., p resid en t of
th e Iow a B an k ers A ssociation and ex
ecutive vice p resid en t and cashier of
Ida County State B ank at Ida Grove,
m ade a b listerin g attack on R egula
tion Z and th e tim e-consum ing, expen
sive procedures th a t m ust be followed
to com ply w ith b ulky F ed eral R eserve
B oard regulations governing all lend
ers. He noted th a t th e ban k in g in d u s
try seem s to be th e only p a rt of th e
financial in d u stry th a t has tak en the
tim e to try to dissem inate to its m em
bers w hat the regulations are all about
and to hold m eetings to in stru c t the
m em bership on details of th e program .
In addition to R egulation Z, Mr.
L ipton w as critical of continuing ef
forts being m ade by governm ental
bodies to inject them selves into com
p etitiv e situations w ith priv ate indus
try.
Edw ard J. H ickey, Jr., rep resen tin g
th e F ed eral R eserve B ank of Chicago,
w as on the second w eek of group
m eetings w ith a su m m ary of the
“T ru th in L ending” law, or R egulation
P R E S ID IN G a t G roup 8
w ere Chm . L. J. H orst, v.p.
t r a l S ta te , M u sc a tin e , a n d
A. Mohr, exec, v.p., M iles
in M u sc a tin e
& cash., C e n
Secy. Le Roy
S a v in g s B a n k .
Z. Most of the points he covered w ere
p re tty m uch stan d ard descriptions
from th e F ed ’s booklet on th e subject,
u n til he told his audience th a t F ederal
R eserve regulations also req u ire a
lender to stip u late in w ritin g if the
rig h t of offset is to be used in the event
the loan goes into default. T his point
had not previously been m ade ap par
ent in previous inform ation given out
on R egulation Z and th ere w as some
confusion and question about its in
tent. Mr. H ickey stated th a t an in te r
p retatio n from W ashington officials of
th e F ed states th a t if a b o rro w er’s
funds in th e b an k can be seized by
th e b ank to be set off against a de
faulted loan, th en th is has to be stated
ahead of tim e.
W hen asked later if th is m eant th at
a ban k could n o t collect its defaulted
loan from a cu sto m er’s checking or
savings account if this statem en t was
not on a note agreem ent. Mr. H ickey
replied in the affirm ative. He was
asked how a collection procedure had
an y th in g to do w ith th e in te n t of Z,
w hich is disclosure of m oney costs,
GROUP M E ET IN G S . . .
(T u rn to page 110, please)
E N JO Y IN G GOLF a t G roup 7 m e e tin g in C ed ar R a p id s w ere R obert J. Sterling, p res., B a n k e rs T ru st, D es M oines, a n d
“B ill” Sum m erwill, chm n., Io w a S ta te B& T, Io w a C ity . C E N T E R — G re e tin g new Io w a su p t. of b a n k in g , Collin W. F ritz (r
is C hristy A rm strong, exec, v.p., A m e ric a n T&S, D ubuque. M r. F r itz a tte n d e d a ll th e g ro u p m e e tin g s in M ay. R IG H T —
F row ick, v.p., C o n tin e n ta l Illin o is N a tl. B&T, C hicago, checks g o lf scores w ith H om er Jensen, v.p., B a n k e rs T ru st, Des
a t E lk a d e r.
N o rth w e s tern
B an ker,
June,
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
1969
107
When
Tim Granzeau
talks municipal bonds,
Iowa buyers listen.
Iowa is T im ’s te rrito ry . It’s his
business to know Iowa customers.
What they need—what they want.
That’s how he can offer the best
selection of municipal bonds, U. S.
securities and agencies.
Tim is backed by the Phone Corps
at The First. So he’s ready with com
puterized facts before he calls. And
he can get details instantly. But
there’s no need to wait for Tim’s
call: phone him collect. (312) 7328364. And ask him about our new
portfolio evaluation service. You’ll
want to listen when he starts talking.
The First National Bank o f Chicago
Bond Department
* >
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
N o rth w e s te rn
B anker,
June,
1969
108
N orthw est Des Moines N ational
B ank.
Donald L. C alkins has been prom oted
from a ssistan t cashier to a ssistan t vice
p resident and W illiam H. W ith ey from
officer train ee to assistan t cashier.
Mr. Calkins, form erly th e Jo h n sto n
office m anager, is now assigned to th e
B eaverdale office in th e in stallm en t
loan departm ent. Mr. W ithey also
w ill be assigned to th e installm en t
loan departm ent.
Jerry R. W halen, w ho joined the
ban k staff in A pril as operations offi
cer, has been appointed a ssistan t vice A
president.
Des Moines News
G. BA R N A R D , vice p resid en t and
• cashier of B an k ers T ru st Com pa
ny, observed his 40th a n n iv e rsa ry of
em ploym ent w ith th e b an k on A pril
27. Mr. B a rn a rd began w o rk on th a t
date in 1929 as a bookkeeper. In fol
low ing y ears he w orked in various
c o m m e r c i a l d ep a rtm e n ts before
t r a n s f e r r i n g to
th e tr u s t d e p a rt
m en t in 1943 as
a s s is ta n t se c re
tary .
He w as nam ed
a tr u s t officer in
1950 a n d w a s
e le c te d secretary
and tr u s t officer
S. G. B A R N A R D
in 1952, in w hich
capacity he headed th a t d ep artm en t
u n til 1959. On M ay 15, 1959, he w as
elected vice p resid en t and cashier of
B ankers T ru s t Com pany, follow ing
th e death of F re d C. A tkins, w ho had
held th a t post for m any years.
S
Mr. B arn ard is w ell-know n to th o u
sands of Iow a b an k ers th ro u g h his
additional assig n m en t as m anager of
the reg istra tio n desk for th e Iow a
B ankers A ssociation’s an n u al conven
tions th e p ast 30 years. Mr. B arn ard
recalls it took m ore clerks to handle
th e reg istra tio n desk tw o and th re e
decades ago—usu ally six girls and two
m en, w ith b an k ers lined up 10 deep—w hen 3,000 to 4,000 persons could reg
ister d u rin g th e first m orning. F o r
m er IBA S ecretary F ra n k W arn er
th en conceived th e idea of prom oting
advance re g istra tio n and th is has
w orked so successfully th a t Mr. B arn
ard has ru n th e re g istra tio n desk the
p ast tw o conventions w ith ju s t two
Des Moines convention b u reau assist
ants. C onvention reg istratio n m ean
w hile has stayed w ell above th e 5,000
m ark th e p ast few years.
* * *
The H ighland P a rk State B ank has
installed a B u rro u g h s B34Q electronic
N o rth w e s tern
B anker,
June,
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
1 969
*
com puter system , according to Charles
Grochala, executive vice president.
“W e have experienced rapid grow th
in th e p ast few years, necessitating
th e opening of a new office,” Mr. Gro
chala said. “The new com puter sys
tem w ill enable us to keep pace w ith
th e dem ands of our expansion, and we
w ill also offer service b u reau facilities
to our custom ers and to o ther banks.”
The B340 w ill process proof and
tra n sit, dem and deposit accounting,
savings and installm en t loans.
*
*
*
R. G. D ickinson and Company, in
v estm en t securities broker, has p ro
m oted E v e re tt T. L eifson and H ugh
W. Jen k in s, to vice presidents.
Mr. Leifson w as com ptroller of Iow a
P a in t M anufacturing Company, Des
Moines, before joining D ickinson as a
reg istered rep resentative.
Mr. Je n k in s has been w ith D ickin
son since 1964 and continues as resi
den t m anager of th e Spencer office.
* * *
S terling,
p resident of
B an k ers T ru st Company, has an
nounced th a t A rthur D. T orgerson has
joined B ankers T ru st Com pany as
vice presid en t and
com m ercial l o a n
officer.
Mr. Torgerson
is a g raduate of
C o n c o r d ia C ol
l e g e , M oorhead,
Minn., and th e P a
cific Coast School
of Banking, Seat
tle. He h as been
in the banking
b u s i n e s s for 20
years, th e first 10 y ears w ith th e M er
ch an ts N ational B ank and T ru st Com
p any of Fargo, N. D., and m ost recen t
ly he has been w ith The A rizona B ank
as vice p resid en t and m anager of its
$15 m illion Cam elback office in P hoe
nix.
R obert
J.
*
*
*
Two m en have been prom oted by
*
*
Mrs. L ila D otson has been nam ed
senior custom ers secretary, a new ex
ecutive position, for th e F irs t F ederal c -v
State Bank, according to D avid Taylor,
president.
*
Mrs. D otson’s duties w ill be in the
*
areas of financial counseling and ac
count service for b an k custom ers over A
65 years of age. The ban k has recen t
ly elim inated service charges on check
ing accounts for such custom ers.
Mrs. Dotson has served in various
capacities in th e b ank for over seven
years.
* * *
Robert J. S terling, president of
B ankers T ru st Com pany, has form ally
announced th a t b a n k ’s in ten tio n to
en ter into th e corporate tim e certifi
cate of deposit m arket, sta tin g th a t
B ankers T ru st Com pany w ill actively
p u rsu e tim e certificates of deposit in
am ounts ran g in g from $100,000 to
$1,000,000 w ith m atu rities from 90 to
270 days. M axim um in te re st rates
paid on these types of tim e certifi
cates are regulated by R egulation “Q”
of th e F ed eral R eserve System and
c u rre n tly range from 6 to 614 per cent.
W hile it has been a com m on prac
tice for some tim e by th e large m oney
m ark et banks located in New York
and Chicago to aggressively solicit cor
porate tim e certificates of deposit in
su b stan tial am ounts, B ankers T ru st
Com pany is th e first com m ercial b an k
ing in stitu tio n in Des Moines and in
Iow a to m ake a form al announcem ent
th a t it w ill seek these types of funds.
Mr. S terling has indicated th a t even
w ith th e strin g e n t m easures of fiscal
and m o netary re stra in t c u rre n tly ex
perienced, a stro n g dem and for legiti
m ate credit by Iow a businesses is
m uch in evidence. A dditional funds
obtained w ill be m ade available to
serve these needs.
4
'
V
T
*• f
O pen H ouse at Boyden
The F arm ers Savings B ank of Boy
den held an open house in its new
bank building last m onth. Over 1,500
attended th e open house.
+* *■
109
- »
r
'¥■
Some of our
people
are
missing
> «
r ->
-
We wanted to run a picture of our
correspondent department in a group. So
you could see what they looked like. But we couldn't
find a time when they were all in. You see,
our correspondent department believes in service.
On-the-spot service. So they travel a lot. Day or
night to serve our correspondent banks. Person-toperson service. If that’s the kind of service you
want from a correspondent bank, call. Then
our men will call on you. Maybe we won’t get the
picture . . . but you will.
You don’t
need us.
We need you !
C
* V
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Central National Bank 8- Trust Company
c<
LOCUST
AT SIXTH AVENUE, DOWNTOWN DES MOINES, PHONE 2 43 -8 1 81
LOCI
MEMBER F.D .I.C .
Northwestern Banker, June, 1969
no
Iowa News
PRESIDING- a t G roup 10 is Chm n. L ester P oole, v.p., P e o p les N a lt., A lb ia. R IG H T — V is itin g a t G roup 10 a re, fro m l e f t: Ray
Park, v.p., C e n te rv ille N a tl.; E d K adera, a.c., M e rc h a n ts N a tl.,C e d a r R a p id s ; B ill M cK inley, D eluxe C heck P r in te r s , D es M
a n d Joe P hern etton , v.p., M e rc h a n ts N a tl., C e d ar R a p id s.
MORE T H A N 1,000 a tte n d e d th e Gr. 3 m e e tin g in C lear L ak e . K e y S p e a k e rs in clu d ed ,
fro m l e f t: M aurice E. B aringer, tre a s u re r o f Io w a ; E dw ard “M oose” K rause, d ir. of
a th le tic s o f N o tre D am e; G eorge N igh , L t. Gov. o f O k la h o m a ; Jam es W. L ipton, p res.,
Io w a B a n k e rs A ssn., a n d John R. M artin, chm n of Gr. 3, a n d p res., F o re s t C ity B k. &
T r. Co. N a tio n a lly -k n o w n sin g e r M argaret W h itin g w as th e s ta r a ttr a c tio n o f th e
e v e n in g show .
GROUP MEETINGS . . .
(C ontinued from page 106)
and replied th a t th e F ed eral R eserve
ap p aren tly felt it had th e p rerogative
to go into th is area as well, regardless
of w h a t state law s m ight stip u late in
reg ard to a le n d e r’s ab ility to recover
th ro u g h offset.
The p a rt of th e reg u latio n th a t ap
p are n tly refers to his point is believed
to be in Section 226.8—C redit O ther
T han Open E n d —Specific Disclosures,
p a rt (e) F in an ce charge payable sep
arately or w ithheld; req u ired deposit
balances, page 15 of “W h at You O ught
WAYNE HUM M ER & CO.
C H IC A G O
to K now A bout F ed eral R eserve Reg
u latio n Z,” issued by th e Fed.
G roup 6 had a “new look” th a t w as
read ily ap p aren t to all w ho had at
tended th is m eeting in p ast years.
G roup officers had decided to move the
m eeting to Des Moines this year be
cause of its cen tral location and larger
facilities The tu rn o u t vindicated th e ir
judgm ent. The m eeting room w as set
up for about 60 chairs, and this n u m
b er tu rn e d out to be inadequate by
far. More th a n 300 persons registered
for th e m eeting at Des Moines Golf
and C ountry Club. Follow ing the
m eeting, a social h o u r w as held, a
delicious buffet d inner w as served, and
Lt. Gov. George Nigh of O klahom a
w as th e speaker.
A n u m ber of ban k ers b ro u g h t th eir
YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE, VAULT AND
TIMELOCK EXPERTS
F. E. DAVENPORT & C O .
OMAHA
Northwestern Banker, June, 1969
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
CHARGE CARDS f re q u e n tly re ce iv e spe
cial p ro m o tio n . H e re E d Spetm an, J r .,
p re s., C ouncil B luffs S a v in g s B a n k , is “ s u r
ro u n d e d ” b y B a n k A m e ric a rd g irls fro m th e
F i r s t N a tl, o f O m aha. T he g irls are from .,
l e f t: Connie Bruner, C arolyn P ark er a n d
J an ice Palm er.
w ives for th e evening event and danc
ing continued to the R osem ary Leh- 4
m an trio u n til m idnight.
A rthur E. Lindquist, Jr., secretary
of th e Iow a B ankers A ssociation, gave K
a rep o rt on legislation at each m eet
ing. The Iow a legislature w as in thç» v
final days of its 1969 session as th e
m eetinges progressed, so some of th e 1
bills he discussed had not received
final disposition.
’
O klahom a’s Lt. Gov. George Nigh
en tertain ed his audiences at several *
of th e group m eetings w here he spoke,,
relatin g w ith m uch h um or incidents'
p e rtain in g to political life in general and O klahom a politics in particular.
— End.
*
BANK
d esig n cdnsuitanis
BOX 87 PH. 1-712-2621499
S P E N C E R ,IO W A 51301
Iowa News
Hon-
W e H it S.tO
111
Miin l.‘l
(C ontinued from page 35)
¥
p a re n ts finances and we have an u n d eterm in ed num ber
of accounts from fam ilies w ho come to C enter B ank be
cause of th e Senior accounts.
Mr. N ollette’s b ro th e r has access from an airline com
p an y to h u n d red s of c u rre n t m agazines w hich w ere for» m erly destroyed. He b rin g s th em to th e bank, and we
d istrib u te th em to th e five Om aha H ousing A u thority
ap artm e n ts for Senior Citizens and to various n u rsin g
^ hom es.
Cost of A ccounts
E v ery b a n k e r is cost-conscious these days. So we
- ►have trie d to determ in e th e cost of these accounts. In
th e first q u a rte r of 1969, these custom ers w ro te an aver-* age of 10 checks per m onth p er account and averaged
one and one-half deposits. E ach item ru n th ro u g h th e
* com pu ter costs us 1.4 cents, so each account has com puter
costs of a little over 16 cents per m onth. Our statem en t
envelopes cost IV 2 cents, postage for m ailing statem en ts
6 cents and up. The first 50 personalized checks are free
to us from th e p rin te r and a fte r th a t, it costs us about 1
cent p er check. So roughly, th e out-of-pocket expense is
about 33 b> cents per account m inim um . T his does not
^
include overhead, handling, etc., as we have no figures
available for these item s.
W e feel th e balances m ain tain ed and th e oth er accounts
^ w e have acquired, ju stify th e expense involved. They
are a stable group, rarely move and m any conduct th e ir
b anking en tirely by mail. The good w ill th ey generate
cannot be m easured. Since th e first of A pril, an o th er
su b urban Om aha ban k has started offering th is sam e
service.
H um an R elation sh ips
W e feel w e are offering a real com m unity service,
w hich should be th e function of every bank. M any of
these custom ers come to us for personal advice and w e
have established a ra p p o rt w ith m any of them . Some
situ atio n s are am azing, some heartb reak in g . Mr. N ollette
had an experience w hich illu strates how vulnerable these
custom ers are to con-artists. One 75-year-old w idow
sta rte d tak in g dancing lessons “to get rid of h er dizzy
spells.” A fter th e elem entary course, she w as told she
should take th e advanced course and signed a b lank con
tract, w hich tu rn e d out to be in the am ount of $2,000.
H er only incom e w as a m onthly social secu rity check
for $73 and h e r savings account had been used d uring
th e 12 y ears of h er h u sb an d ’s illness. W hen th e dance
studio began to h arass her, she cam e to Mr. N ollette for
advice and he interceded in h er behalf. He advised h er
w hen she got a sm all inh eritan ce and helped h e r p rep ay
h er phone and u tility bills. Several m onths ago she re
ceived th e final settlem en t of h e r a u n t’s estate, about
$3,500, and you can probably guess th e re st—she’s talk in g
about tak in g m ore dancing lessons!—End.
•e *
Newest Member of the
SERVICE TEAM
>
.*
Les Olson
*
Richard Breyfogle
Leo Stavas
Dennis Vellek
>
(712) 255-7926
STAN FREDERICKS
♦
%
- #
♦
SIOUX CITY, IOWA
N o rth w e s te rn
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Banker,
June,
1969
112
Iowa News
H onored for 5 0 Years
Open H iaw ath a Office
H a rry S. Lekw a, chairm an of the
board of th e A ckley State B ank, A ck
ley, w as honored last m onth at a d in
n er com m em orating his 50 y ears of
active banking. Mr. L ekw a is a past
presid en t of th e Iow a B an k ers Asso
ciation and served eight y ears on th e
State B anking Board.
Joins B anking D epartm ent
Ron G reeson has accepted a post as
a ssistan t b an k exam iner w ith the
Iow a D ep artm en t of B anking, located
in G rinnell. F o r th e p ast four years,
he has been an in stru c to r at P resto n
C om m unity School, P reston.
P A R T IC IP A T IN G in rib b o n c u ttin g cerem onies a t th e new H ia w a th a office o f th e
F a rm e rs S t. B k., M a rio n , a re ( le f t to r i g h t) : F loyd Emmons, d ir.; J a ck Parm enter, v. p
a n d c ash .; George Bowler, m ay o r of H ia w a th a ; Jam es M ollenhauer, a. v. p. a n d m gr. of
H ia w a th a office; M orris F. N eighbor, p re s.; C linton M oyer, d ir.; Frank F rederick,
a n d E dw ard Ford, a rc h ite c t.
H E F a rm e rs State Bank, M arion,
has announced th e opening of its
H iaw atha office. H iaw ath a is a com
m u n ity of approxim ately 2,200 popu
la tio n
lo c a t e d
n o rth w est of M ar
ion.
The new office
is e q u ip p e d to
handle all b an k
ing needs, includ
ing v a u l t w i t h
safe deposit
boxes, four inside
te lle r w in d o w s
and drive-up w in
J. M O L L E N H A U E R
dow. T h e r e is
also a com m unity room available to
local groups.
Jam es M ollenhauer, a ssistan t vice
president, has been nam ed m anager of
th e H iaw atha office, w here an open
house w as held on May 25.
T
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Whatever banking service you’re pro
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TE-284
FACTORIES: S. Hackensack,
New Jersey / M emphis, Tenn. /
St. Louis, Mo. / Des Moines,
Iowa / M inneapolis, M innesota /
Kansas City, Mo. / Ft. W orth,
Texas / Los Angeles, C alifornia.
Northwestern Banker, June, 7969
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Bank D irectory C orrections
The follow ing corrections should be
m ade in th e recen tly m ailed 1969
Iow a-N ebraska B ank D irectory:
A tlantic: The correct phone num ber
for A tlantic S tate B ank is 712-243-1140.
D yersville: E d L auerm an, Jr., is
vice presid en t and cashier of F idelity
B ank & T ru st as listed in th e book/* ^
H ow ever, he w as in ad v erten tly in
cluded also as a vice presid en t in the
listing for D yersville N ational Bank.
His nam e should be deleted from the
D yersville N ational list of officers.
New Officers at Marion
^
The board of directors of the F a rm
ers State Bank, M arion, elected theA
follow ing officers at a recen t m eeting:
Cleon H e rrio tt w as elected business
developm ent officer and a ssistan t farm
rep resen tativ e. R ichard C. H are w as
prom oted from a ssistan t cashier to installm ent loan officer, and W illiam A.
Reilly also w as nam ed an installm ents
loan officer. H ildajune P a rk e r was
nam ed a ssistan t operations officer and
N ancy Mangold, executive secretary.
<*• A-
113
W IN N E R S CIRCLE— R obert L. W alton, pres., F a rm e rs & M er> c h a n ts S t. B k. o f B u sh n e ll, a n d W illis A lexander, p res., A m e ric an
B a n k e rs A ssoc., v is it w ith M yron H eins, p res., B a n k of P o n tia c
' > ( r ig h t) fo llo w in g his e le ctio n as IB A pres. R IG H T — Frank
P rice, pres., L a S a lle N a tl. B k., C hicago, m in o rity c a n d id a te fo r
p res., is show n w ith som e of his a rd e n t b o o ste rs p re v io u s to th e
electio n .
Illinois H ankers E lect
jMyron Heins: D efeat Studif Elan
By MALCOLM FREFXAND
Publisher
STRONG voice of opposition w as
raised at th e 78th a n n u a l convention of th e Illinois B an k ers Associa
tion last m o n th in Chicago as a “m i
n o rity ” slate of officers w ere nom inated
in addition to th e tra d itio n a l candi
dates supp o rted by the A ssociation’s
n o m inatin g com m ittee.
Follow ing a secret ballot tak en
am ong all reg istered m em ber b anks at
th e convention, M yron H eins, presih d en t of th e B ank of Pontiac, w as elect
ed IBA p resid en t to succeed A llen P.
Stults, president, A m erican N ational
B ank and T ru st Com pany, Chicago.
*
T he “m in o rity ” slate w as m ade up
of F ra n k G. Price, president, LaSalle
f N ational B ank, Chicago, for president;
Todd W ard, president, Lincoln T rail
^State B ank, F airv iew H eights, for vice
re s id e n t; Lew is J. D unn, president,
A
J
U nion N ational Bank, Chicago, for
second vice president, and Jo h n Cot
ton, president, E v an sto n T ru st and
Savings Bank, for tre a su re r. The
group advocated a Blue R ibbon Study
Com m ission to be created u n d er the
auspices of th e state governm ent
w hich w ould have as its responsibility
the evaluation of th e adequacy of th e
p resen t b an king stru c tu re in Illinois
in term s of its ability to m eet the
p re se n t and fu tu re financial needs of
th e citizens of the state.
C andidate’s P osition
Mr. P rice explained th a t his candi
dacy in no w ay related to a position
w ith respect to u n it banking, branch
b an k in g or group banking. Charles
M. Shea, legal counsel for the B everly
Bank, B everly, and H en ry Seyfarth,
O P E N IN G SE S S IO N w as led b y th e Rev. John S, H ubner,
p a s to r, E d g e b ro o k C om m unity C hurch, C hicago; Thomas V. K in g,
pres., C hicago C o n v e n tio n B u re au , a n d IB A P re s. A llen P.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
chairm an, F irs t N ational B ank, Blue
Island, w ere m ore outspoken in sup
po rtin g the m inority ticket. I t w as
evident th a t M essrs. Shea and Sey
farth favored a change in Illinois law
restric tin g holding c o m p a n i e s and
b ranch banking. Mr. Shea w as for
m erly w ith Jam es Saxon w h en he
served as C om ptroller of th e C u rren
cy.
In placing th e opposition slate in
nom ination, W ard W eaver, president,
S haum burg State Bank, said th e nom
inations w ere “to call a tte n tio n to a
m in o rity view point th a t has been sad
ly overlooked.”
P resid en t S tults said Illinois b an k
ing stru c tu re should be evaluated on
th e basis of th e h ealth of th e sta te ’s
economy, w hich he said ran k s at the
top w hen com pared w ith o th er states.
A nother yardstick, he said, is w h eth er
a com m unity is b e tte r served by local
b an k ow nership and m anagem ent or
by a b an k owned by a large corpora
tion.
P revious to the secret ballot, m in o r
ity candidates told th e N o r t h w e s t e r n
B anker
th a t th ey w ould w ith d raw
from the race if th e A ssociation w ould
approve of the proposed banking
Stu lts. R IG H T — E n jo y in g th e session w ere L aird Taylor, asst,
v.p., M illik in N a tl. B k., D e c a tu r; Jack W. Im p ey a n d P ete r L.
Engstrom , v.p.s o f F in a n c ia l In s u ra n c e S e rv ice , Inc., D es P la in e s.
N o rth w e s tern
B an ker,
June,
1969
114
Illinois News
study. The proposal w as defeated in
com m ittee by a vote of 28 to 2.
O ther successful candidates elected
to assist Mr. H eins d u rin g his te rm as
p resid en t are: first vice p resid en t—
F red W. H eitm ann, Jr., president,
N o rth w est N ational B ank of Chicago;
second vice presid en t — Lew is H.
Clausen, president, The Cham paign
N ational Bank, and tre a su re r—A rth u r
W erre, Jr., president, F irs t N ational
B ank of Steeleville. All w ere nom i
nated by th e A ssociation’s nom inating
com m ittee.
K E Y L IN E S Y S T E M , c u rre n tly b e in g in tro d u c e d b y C o n tin e n ta l
Illin o is N a tl. B k & T r. Co., C hicago, is e x p la in e d b y A r th u r S.
L ittle fie ld , J r ., v.p. of C o n tin e n ta l to J o h n T h ill, v.p., Old Second
N a tio n a l B a n k , A u ro ra , a n d L a r r y F ro w ic k , v.p., C o n tin e n ta l.
Foundation for t
Banks
The form al convention program was
headed by some of Illinois’ best-know n
leaders including G overnor R ichard B.
Ogilvie; H en ry W. McGee, p astm aster < G
of the Chicago P ost Office, and R obert
C. G unness, president, S tandard O il7
Com pany (In d ian a), Chicago. Special
R IG H T — N o m in a tin g co m m itte e fo r 50-year club o f IB A h
e luded C. E d g a r Jo h n so n , re tir e d sr. v.p., F i r s t N a tl. B k. of C hi
cago; C h arles A lb e rs, m gr., C hicago C lea rin g h o u se, a n d T. E a r l
M c N a m ara , chm n, U nion N a tl. B k ., S tre a to r.
1 »
LOOK FOR THIS SYM B
R IB B O N -C U T T IN G a t new F i r s t N a tl. B k. of C hicago o ccu rre d
a t sam e tim e Illin o is B a n k e rs C o n v e n tio n w as in session. Show n
a t le f t a re H o m e r L iv in g sto n , r e tir e d c h a irm a n o f th e F ir s t,
v is itin g w ith M a y o r R ic h a rd D aley a t th e sp e c ia l cerem onies.
R IG H T — R o b e rt L. H o lt, chm n. & p re s., E lg in N a tl. B k .; G eorge
Ja c o b sm e y e r, v.p., A m e ric a n N a tl. B k & T r. Co., C hicago, a n d
E u g en e A begg, chm n., Illin o is N a tl. B k. & T r. Co., R o ck fo rd ,
v is it in A m e ric a n ’s su ite.
H O S P IT A L IT Y S U IT E S w ere p o p u lar. H e re M iss D e b ra M cC all;
C has. M cC all, d e p u ty comm, of Illin o is S t. B k. D e p t; J o h n O b er
m ann, v.p. M e rc a n tile T r. Co., S t. L o u is; a n d M r. a n d M rs. L a r r y
K u h n , pres., Je ffe rso n T r. & S av. B k., P e o ria , v is it in M e rc a n tile
room . R IG H T — P a t J . F le m in g , chm n., F i r s t N a tl. B k., O’F a llo n
a n d D on E . B row n, exec, v.p.. F i r s t N a tl. B k., O’F a llo n , v is it w ith
Ja m e s H a y n e s, P u b lic re la tio n s d ir., S p rin g field M a rin e B a n k ;
M r. a n d M rs. J a m e s S in g e r, a sst, v.p., a n d D on L a s a te r, pres.,
M e rc a n tile T r. Co., S t. L ouis.
N o rth w e s tern
B an ker,
June,
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
1969
ilinois News
115
F O U N D A T IO N fo r F u ll S e rv ice B a n k s w a s re p re s e n te d by
O liver D aggert, S te rlin g , a n d P aul M iller, v.p., H a r r is T r. & S av.
>B k., C hicago. M r. M ille r se rv e d as chm n. fo r Illin o is. B IG H T —
Chas. Thompson, exec, v.p., L a u ra S t. B k., v is its w ith B obert
Logan, p res., C e n tra l N a tio n a l B a n k in C hicago, a n d H arold
Bacon, chm n., H om e S t. B k., C ry sta l L a k e .
SP E C IA L P A R T Y w as h eld b y S c a rb o ro u g h a n d Co., C hicago.
E d A rseneault, pres., Soy C a p ita l B a n k , D e c a tu r, is g re e te d by
Richard Ross, pres, of h o st firm. R IG H T — L aird Taylor, a sst,
v.p., M illik in N a tl. B k., D e c a tu r, a n d R obert Lough, pres., Dro-
v ers N a tl. B k., C hicago (se a te d ) a re show n w ith F red Cum
m ings, v.p., D ro v e rs; Bernard M iller, vice p re sid e n t, D ro v e rs, a n d
B illy C. K em per, cash., F i r s t N a tl. B k., S u lliv a n , in D ro v e rs su ite.
*
talk s w ere given by W illis W. A lexan
der, ABA president, on controlling in
flation, and by E. B. H arris, president,
Chicago M ercantile E xchange on how
hedging helps p rotect livestock loans.
O utgoing P re sid e n t S tults h as been
* ^endorsed by the Illinois B an k ers Asso
ciation as a candidate for vice p resi
d en t of th e A m erican B ankers A ssocia
tion. E lection w ill take place a t th e
95th annual ABA convention in H a
w aii, Septem ber 28-October 1.
T he 78th an n u al Illinois convention
closed in harm o n y as delegates and
rth e ir w ives atten d ed th e an n u al b an
qu et featu rin g Lee Castle and his fab
ulous Jim m y D orsey O rchestra. It
w as felt by some delegates th a t the
opposing view s m ay cause a b reak in
th e 1,067-member A ssociation—b u t if
th is h ap p en s—it w as not evident as
th e band played on.—End.
ON THE COVER
R ibbon-cutting cerem onies m arked
th e opening on May 26 of The F irs t
N ational B an k of Chicago’s new $110
1 '*■
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
m illion building. P ictu red on the cov
er at th e cerem ony are (left to rig h t):
The H on. R ichard B. O gilvie, Gover
nor of Illinois; H om er J. L ivin gston ,
w ho re tire d recen tly as ch airm an of
th e b an k board of directors; Gaylord
A. F reem an, Jr., ch airm an of th e board
of F irs t N ational, and T he H on. R ich
ard Haley, M ayor of Chicago.
Im m ediately follow ing th e 8:30 a.m.
cerem ony, th e F irs t N ational opened
for b u siness in th e 60-story building at
One F irs t N ational Plaza after a rec
ord-setting w eekend move from th e
old b an k building n ex t door.
Gov. Ogilvie and M ayor Daley joined
C hairm an F reem an in b rief cere
monies:
• P ay in g trib u te to Mr. L ivingston,
re tire d ban k c h a i r m a n u n d er
w hose adm in istratio n th e bold
new plaza developm ent w as con
ceived.
• D edicating th e sw eeping sky
scrap er to all it w ill serve and all
w ho b u ilt it.
• C utting a blue and silver ribbon
to open th e new b an k building’s
doors to custom ers for th e first
tim e.
T he F irs t N ational Plaza develop
m ent includes th ree m ajor elem ents:
1. The $110 m illion sk y scrap er of
granite, steel and glass, tallest
b ank building in th e w orld, w ith
m any o u tstan d in g features.
2. A 30-story office building u n d er
construction on th e w est side of
C lark S treet at Two F irs t N a
tional Plaza, to be linked u n d er
ground w ith th e b ank building
and provide additional space for
b ank and te n a n t offices.
3. An open, landscaped plaza to re
place th e old b ank building on
the south h alf of th e block, w ith a
personal banking center, re sta u
ran t, shops, u n d erg ro u n d parking,
500-seat m eeting room, a fountain
and scu lpture — all designed to
b rin g a new sense of grace and
beau ty to the center of th e city.
A nother sto ry on page 26 describes
the extensive cam paign carried out by
F irst N ational to publicize th e opening
of th e new building.
N o rth w e s te rn
B anker,
June,
1969
116
WANT ADS
hura
B an kers *
M
Rates 25 cents per word per
insertion. Minimum: 12 words.
NORTHWESTERN BANKER
306 15th St., Des Moines, Iowa
A G R IC U L T U R A L L O A N
O F F IC E R
P r o g r e s s iv e $4 m illio n b a n k in
n o r t h e a s t Io w a n e e d s e x p e rie n c e d
a g r ic u lt u r a l lo a n officer. W r ite F ile
D IB , in c a re o f N O R T H W E S T E R N
B A N K E R , 306 F i f t e e n t h S tr e e t,
D e s M o in e s, Io w a 50309.
$10.00 IS
T h e p ric e o f a p e rs o n a l, a i r m a il
s u b s c rip tio n to t h e C ro u se F a r m
B u s in e s s R e p o rts . T h e y h e lp k e e p
lo an officers a n d a g r e p r e s e n t a t i v e s
a h e a d o f th e c h a n g in g f a r m p ic tu r e .
S a m p le s a v a ila b le . F a r m B u s in e s s
C o u n cil, In c ., P .O . B o x F , U r b a n a ,
Illin o is 61801.
LEG A L FO RM S
A n y f o r m y o u n e ed w e sto c k , o r
w ill p r i n t.
S p e c ia l f o r m s t h e n
sto c k e d f o r p r o m p t s h ip m e n t on
r e o rd e r s .
IO W A L E G A L B L A N K
& P R I N T I N G CO.,
B o x 238, W e b s te r C ity , Io w a
ACORN
Registers
"Accepted Sale Registers by Bank
Clerks Everywhere"
For i n fo rm a tio n w r i te
THE ACORN PRINTING CO.
Oakland, Iowa
OPERATIONS POSITION OPEN
IN DENVER COMMERCIAL
BANK
M e d iu m to la r g e b a n k in D e n v e r
a r e a . R a p id g r o w th r e q u ir e s m a n
w ith o p e r a tio n s e x p e rie n c e in c lu d
in g s u p e rv is io n a n d k n o w le d g e o f
p ro o f a n d t r a n s i t , b o o k s, w ire t r a n s
f e r , c o lle c tio n s a n d / o r c u s to m e r
s e rv ic e a r e a s . E x c e lle n t b e n e fits a n d
o p p o r tu n ity to a d v a n c e w ith e x
p a n d in g b a n k . S a l a r y op en . S e n d
re su m e
to
N O RTH W ESTERN
B A N K E R , F ile D JB , 306 F i f t e e n t h
S t., D e s M o in e s, Io w a 50309.
I O W A S E A R C H , IN C .
BOX 103 DES MOINES, IOWA 50301
TEL. (515) 243-3271
Uniform Commercial Code
Services
N o rth w e s tern
Banker,
June,
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
1969
OTJTDOORSMAN J a y B lack ford ( l e f t ) , pres, of U n io n B&T, O ttu m w a, a n d v.p., Io w a
B a n k e rs A ssn., h o ste d Jim L ipton, IB A pres., a n d O llie H ansen, im m ed. p a s t IB A p re s .A
a n d th e ir w iv es on a m ushroom h u n tin g tr ip re c e n tly . P ic tu r e d w ith M r. B la c k fo rd are,
le ft to rig h t, Mrs. H ansen, Mrs. L ipton, Mr. Lipton, w ho is exec. v.p. & cash., I d a C ounty ,
S ta te B a n k , I d a G ro v e; Mr. H ansen, w ho is p re s., L ib e r ty T&S, D u ra n t, a n d th e ir guide,
Russell A llen , dir., S o u th O ttu m w a S av. B k. F o r f u r t h e r new s on “ T he G re a t M ushroom
H u n t,” see a w a rd p ic tu re on p a g e 104.
Joins Sioux City Bank
Marks 5 0 Years
A fter m ore th an 25 y ears in th e pub
lic accounting field in Sioux City, Gay
lord W. Sm ith has joined the staff of
Security N ational Bank. Mr. Sm ith
w as elected vice presid en t and comp
t r o l l e r of the
b ank at th e m eet
ing of th e board
of directors last
m onth.
Mr. Sm ith is a
Certified P u b l i c
A ccountant holdi n g certificates
from Iowa, Ne
b rask a and South
D akota and is a
G. w . S M I T H
m e m b e r of t h e
A m erican In stitu te of Certified Public
A ccountants and the A m erican Ac
coun tin g A ssociation. He is now serv
ing as a m em ber of the State T axation
Com m ittee of th e Iow a Society of Cer
tified Public A ccountants. He has
served as an in stru c to r for the A m eri
can In stitu te of B anking and as a lec
tu re r a t M orningside College.
F o r the past nine years, Mr. Sm ith
has been a p a rtn e r in the firm of W il
liam s and Company, Certified Public
A ccountants.
M erten G. Klaus, p resid en t of th
F irs t Security B ank and T ru st Com
pany, C harles City, w as honored last
m onth by bank em ployees at a dinner
at the C harles City C ountry Club.
Mr. K laus celebrated his 50th an n iv er
sary in the banking business.
O pens New Facility
A pproxim ately 3,500 visitors atten d
ed the recent open house at th e Clear
Lake B ank and T ru st Com pany. The
open house m arked th e opening of
th e b a n k ’s new 7,200-square-foot addi
tion and the b a n k ’s 35th an n iversary.
The new addition includes e x ecu tiv e1
offices, drive-in and w alk-up windows,
as w ell as a new p re sid e n t’s office, em
ployees’ lounge and board of directo rs’
room on the second floor of th e stru c
ture.
r*
E lected Vice P resident and
D irector at W illiam sburg
Otto H uedepohl, w ho has been a di
rector of F arm ers T ru st and Savings
B ank in W illiam s
b u rg f o r m a n y
years, rece ntl y*
w as elected vice
president and di
r e c t o r . The an
nouncem ent w a s
I t *'•**
m a d e following .
m the board m eeting
1
V.stiU. ])V o iK.,.( l L ar
son, president.
Mr. H uedepohl
O. H U E D E P O H L
w ill continue his
active particip atio n in functions of
th e board of directors b u t w ill be on
inactive statu s as vice president.
MANUFACTURERS
HANOVER
CORPORATION
A new corporate symbol:
M anufacturers H anover Corporation
is the one-bank holding company whose
subsidiary is M anufacturers H anover
T rust Company. The new corporate
structure places the Bank in the best
possible position to be more useful
in more w ays to its present and
potential custom ers.
A new symbol for investors:
m m m m m MHC ■ ■
The listing of M anufacturers Hanover
Corporation on the New York Stock
Exchange enables the public to
share more easily in the future of a great
financial organization by providing
a broader m arket for its securities.
MANUFACTURERS
HANOVER
CORPORATION
MANUFACTURERS HANOVER TRUST COMPANY
Subsidiary
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
yes
We think y o u l l fin d
our G rain D ra ft Collections
a little hit better.
A n d a little b it fa s te r . . .
W hy?
Because we have established co rre s p o n d e n t accounts
in all key m arkets.
charges caused
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
There is never any d e la y, never extra
b y unnecessary, tim e -co n su m in g
ha n d lin g .
C a ll J e rry N elson— th a t's J e rry 's p ic tu re a b o ve — o r any
o f o u r o th e r o ffic e rs a t any tim e you w a n t c o rre s p o n d e n t
services th a t's . . . a little b it b e tte r.
IOWA-DES MOINES
NATIONAL BANK
Sixth and Walnut, Des Moines 503 0 4 • 2 8 4 -86 86
Member Federal Deposit Insurance Corporation
a little b it less expensive, to o .
NOW IN OUR
SECOND CENTURY,
OF BANKING
@FedFRASER