Full text of The Northwestern Banker : June 27, 1966, No. 977

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Oldest Financial Journal West o f the Mississippi
No. 977

Des Moines, Iowa

June 27,1966

D e la y Action on Bank C D Rate Lim it

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The House Banking and Cur­
rency Committee has delayed final
action on a bill designed to restrict
to 5% the one-year limit which
commercial banks could pay on
consumer-type certificates of de­
posit.
The delay was viewed as a
setback, and possibly the death
knell, for Congressional legislation
favorable to the Savings and Loan
industry in its quest for more
home mortgage market capital.
The surprise delay came after
the Committee had voted tentatively
to impose the one-year 5% limit.
Some S&L strategists, in view of
the 10-day Congressional recess
following the July 4th holiday
and in view of additional matters
to be considered by the Committee,
have given up the battle for Con­
gressional assistance in their effort
to attract more capital.
Among the additional matters
being considered by the Committee
were the following:
Chairman Wright Patman (D-Tex.)
last week stated thatthe Committee
would consider a proposal made by
Rep. Paul H. Todd, Jr. (D-Mich.)
which would cut the rate to 4-3/4%.
The Committee held a public
hearing last Thursday on CD leg is­
lation which would give the Fed­
eral Home Loan Bank Board author­
ity to regulate rates paid by S&L’ s.
Last Tuesday and Wednesday
were devoted to the housing bill,
traditionally opposed by the S&L’ s.
Stephen

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Slipher,

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staff

vice

president of the United States Sav­
ings & Loan League, stated that
he did not feel the rate question
should be decided at this time, but
should be given further study and
should be the subject of additional
hearings.
The American Bankers A ss o c i­
ation has fought the rate-restricting
legislation arguing that it would
discriminate against small savers,
colleges and charitable institutions.

House Passes Senate
Version of Holding Act
The House last week passed
the Senate version of the Bank
Holding Company Act of 1966
which will force Financial General
Corporation, headed by former Des
Moines businessman Gen. George
Olmsted, and the Du Pont Company
to divest themselves of non-banking
interests over a period of several
years.
The bill was sent to the White
House for President Johnson’s
signature.
The new law will permit Finan­
cial General to retain all of its
banking interests. It must divest it­
s e lf of its non-banking interests,
but has until 1978 to do so.
The Du Pont Company has been
given five years to complete its
divestiture of non-banking interests.
The Bank Holding Company
Act of 1965 exempted the two org­
anizations under a clause which
exe mpted firms affiliated with a
registered investment company at

the

time of the law’s passage.
The organizations, under the
1966 law, will be required to ob­
tain Federal Reserve Board ap­
proval to acquire additional banks
and will be able to obtain banks
only in their home states by pur­
chase or merger. Acquisition of
banks in other but their home
states will henceforth be possible
only by merger.

Four States Go Under
U.C.C. Within a Week
Four states within the area
served by Northwestern Banker
will be operating under the pro­
visions of the Uniform Commercial
Code within the next week.
Iowa’ s effective date is July
4, although the date it actually
becom es effective will be July
5, due to the Independence Day
holiday. The Code goes into effect
in Minnesota, Colorado and North
Dakota this Friday, July 1.

NATIONAL NEWS
CHICAGO: John R. R. Roser, vice
president, Harris Trust and Savings
Bank, has been named adminis­
trator of the international banking
division and has been appointed
chairman of the international bank­
ing credit committee. Lambert W.
Bredehoft, v ice president, formerly
administrator of international bank­
ing, has become deputy executive
of the national group. Robert W.
Rogers, vice president, moves from
the national group, which he served
(Continued to back page)

T h e m y r ia d t o o ls o f m o d e r n b a n k in g
. . a n d m e n w h o k n o w h o w to u s e t h e m .
G o o d r e a s o n s w h y o v e r h alf the b a n k s in I o w a a re
— M N B corresponden ts
J im V a n D in e
V .P . — D ata P r o c e s s in g


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IOWA NEWS
THE OFFICE of the Iowa
Bankers A ssociation has been
moved within the Liberty Building
in Des Moines. Formerly on the
fourth floor of the building, the
IBA is presently located in room
630 of the Liberty Building. The
phone number remains unchangedarea code 515 243-0179.
AMAN A: The Benton-Iowa County
Bankers A ssociation will hold a
meeting Wednesday, June 29, at
the Ox Yoke Inn, beginning at
6:30 p.m. A socia l hour and dinner
is planned.
AMES: First National Bank has
secured approval from the Comp­
troller of the Currency to establish
a parking lot facility in the area
of 2318 Lincoln Way (near Iowa
State University). No definite plans
have been made, according to
Robert W. Stafford, vice president.
CEDAR RAPIDS: The AIB 1966
District 10 Regional Leaders^_Con^

OVER
10,000
financial institutions
across the country
buy our equipment and
services every year.

CEDAR RAPIDS, IOWA 52406

ference will be held at the R oose­
velt Hotel here July 14 and 15.
The program, under the direction
of Thomas Dinkel, Central Bank
and Trust Company, Denver, ex­
ecutive councilman for District 10,
will feature guest speaker Henry C.
Harra, First National Bank of
P a ssa ic County, Totowa, New Jer­
sey, vice president of the AIB
section of the American Bankers
A ssociation.
COUNCIL BLUFFS: Charles Tyson
and Joseph Yager have been e le c­
ted v ice presidents of the First
National Bank of Council Bluffs.
Mr. Tyson joined the bank in June,
1964, and is in charge of the in­
stallment loan department. Mr.
Yager joined the bank earlier this
month and is in charge of mortgage
banking operations.
DES MOINES: H. L. Gandy has been
elected an assistant vice president
at Iowa-Des Moines National Bank.
He will head the bank’ s systems
and procedures department. Mr.
Gandy, a native of Des Moines,
was most recently director of data
processing in the state comptrol­
ler’ s o ffice .
DES MOINES: Smith W. Brookhart, III
has been elevated from assistantcashier to cashier at Plaza State,
replacing Earle Van Steenhuyse
who has been named vice president
and cashier at First National Bank 8Trust, Beatrice, Nebr. In addition
approval has been received by
P laza State for construction of two
drive-up tellers on east parking
lot of Merle Hay Plaza adjacent to
Merle Hay Road.
DES MOINES: East Des Moines Na­
tional Bank has secured approval
from the Comptroller of the Currency
for a parking lot facility in the
Pleasant Hill area in east Des

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Moines. Doyle Butts, executive
v ice president, states that no
definite plans have been made for
a s p e cific location.
DES MOINES: Homer S .T e sd e ll has
been promoted to assistant cashier
of the Central National Bank and
Trust Company. Mr. Tesdell has
been associated with the bank
sin ce 1929.
EAGLE GROVE: The Iowa Banking
Board has approved a parking lot
office for the Security Savings
Bank here. C. W. Dunn is president
of the bank.
EMMETSBURG: Gary Hughes, until
recently a resident of Des Moines,
has been elected assistant cashier
at Iowa Trust and Savings Bank.
He is a recent graduate of Drake
University, Des Moines.
FA RLEY: Farley State Bank ob­
served its 60th anniversary last
Thursday.
MAQUOKETA: Reid E. Erickson,
manager of the installment loan
department, has been elected vice
president of the Jackson State
Savings Bank. For the past three
years, Mr. Erickson had served
as the Clinton office manager for
the Morris Plan Company.
MASON CITY: Gary A. Hermann has
been elected assistant cashier at
the First National Bank of Mason
City. He joined the bank in Decem­
ber, 1965, as agricultural represent­
ative.
MISSOURI V A LLEY: Mr. and Mrs.
John A. Kovar will be honored at a
reception from 2:30 p.m. to 5:00 p.m.
on Sunday, June 26 at the LoganMissouri V alley Country Club on
the occasion of their 50th wedding
anniversary. Mr. Kovar is vice
president and cashier of the Peoples
State Bank.
MONTICELLO: Charles M. Luett, a
director and past vice president of
the Monticello State Bank,, died
recently o f a cerebral hemorrhage.
WATERLOO: Frederick Koch has
been advanced from v ice president
to senior v ice president at Waterloo
Savings Bank, according to Pres­
ident Dale DeKoster. Four addi­
tional promotions were also an­
nounced: Merle W. Rodgers, from
vice president and cashier to
senior v ice president; Robert V.
Cooper, from vice president to
senior v ice president; E. James
O ’ Connor,
from assistant vice
president to vice president, and
Gerald Curran, from assistant cash ­
ier to cashier. The bank has also

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appointed Judd W. Leland, formerly
associated
with Rath Packing
Company, as agricultural represent­
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THE
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IN S I O U X C I T Y .

N EB RA SKA NEWS
BEATRICE: Earle Van Steenhuyse
will become vice president and
cashier o f First National Bank and
Trust. He was formerly cashier of
Plaza State Bank. Des Moines, Iowa.
GRAND ISLAND: Banking Director
Byron Dunn reports that another
application for a fourth bank to be
located in Grand Island has been
filed with his office . As was re­
ported last week, an application
for a Bank of Grand Island, Inc.,
was earlier filed. Shortly thereafter,
an application for a proposed Bank
of Hall County, Inc., was filed.
Applicants named in the latter
application include Lloyd H. and
Lloyd J. Wheeler, Lloyd W. Kelly
and Lloyd W. Kelly, Jr., E llis A.
Anderson, Reid Halbert, John Niedfelt, Herbert E. Lysinger and Jack
B ailey, all of Grand Island, and
Ralph E. Misko, president, First
Security Bank, Holdrege, and a
former state
banking director.
Grand Island is presently served by
three commercial banks and a trust
company.
NORTH PL A TTE : Federal Home
Loan Bank Board has approved a
new charter for the First Federal
Savings & Loan A ssociation of
North Platte.
OMAHA: Occidental Building and
Loan, located in the Brandeis
Crossroads Shopping Center here,
was robbed last Monday of approxi­
mately $10,000.

MINNESOTA NEWS
CROOKSTON: The Crookston Na­
tional Bank has purchased the
Bratrud Building, located adjacent
to the bank building, for future
expansion.
HAMBURG: Henry C. Reget, Minne­
apolis, has purchased the State
Bank of Hamburg from Allan R.
Burrill. Mr. Reget has been named
president. Rex Heston remains as
executive vice president and cash­
ier, Erwin A. Proehl as vice pres­
ident and Anna May Oelfke as
cashier.

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Federal Reserve Bank of St. Louis

i=J SECURITY NATIONAL BANK
Member Federal Deposit Insurance Corporation
LAKEVILLE: Adon A. Zimmer, 56,
president, First National Bank of
Lakeville, died recently at St.
Mary’s Hospital in Rochester fo l­
lowing a brief illness.
NORTHFIELD: The first session
of the Minnesota School of Banking
convened at St. Olaf C ollege here
with 70 Minnesota banker-students
in attendance. The sch ool, initiated
this year, con sists of two resident
session s of one week each. Stu­
dents attending the initial week of
the sch ool, which was concluded
last Friday, will return in June,
1967, to complete the course.

NORTH DAKOTA NEWS
BUFFALO: Gorman King, Valley
City, and H. R. Edlund, Buffalo,
have been elected chairman and
president, respectively, of the
newly-reorganized First State Bank
of Buffalo.
McCLUSKY: Open house was held
recently at the new First National
Bank here. The special occasion
also marked the bank’ s 59th an­
niversary. The bank’ s new $75,000
building was completed this spring.

Stevensville. The Board stated
that the proposed move would
possibly mix banking and non­
banking interests in violation of
the Bank Holding Act. The First
Montana had sought to become a
bank holding company via the
acquisition. The Corporation owns
Commerce Bank and Trust, Helena,
a finance company, a real estate
investment company and five title
insurance companies.

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WANTED!
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SOUTH DAKOTA NEWS
HUMBOLDT: Eldon Munce, 46, vice
president, Community Bank, died
in his sleep of a heart attack early
this month.

MONTANA NEWS

G

I^ O U T H

GREAT FALLS: The Federal Re­
serve Board has denied an appli­
cation by the proposed First Mon­
tana Bank Corporation to acquire
control of the Ravalli County Bank,
Hamilton, and the First State Bank,

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George Har nage 1

(Continued)
as deputy executive, to the same
capacity for the personal banking
group.
KANSAS CITY: P. V. Miller, Jr.,
last Tuesday was elected president
of Commerce Trust Company. Harry
L. Wuerth was named vice chair­
man of the board and Charles E.
Shewalter was advanced to senior
v ice
president
and controller.
Mr. Miller, 44, su cceeds James
M. Kemper, Jr., president of the
bank sin ce December, 1955, and
president and board chairman since
November, 1964. Mr. Miller had
been senior v ice president in
charge of administration. He has
been associated with the bank
since his graduation from Kansas
University in 1947.
Mr. Wuerth fills the position of

LEO
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R. Coleman Egertson, a native
of Estherville, Iowa, has been
appointed Regional Administrator
of National Banks for the Third
National Bank Region, supervising
368 national banks in Pennsylvania
with assets of $15 billion.

M em ber F e d e r a l D e p o s it In su ra n ce C o rp o ra tio n

NATIONAL NEWS

C H R IS T Y
ARM STRO N G

of Deputy Comptroller of the Cur­
rency, effective July 1.

correspondent

bank’

american trust
and sa v in g s b a n k
9TH AND MAIN, DUBUQUE, IOWA
M E M B E R : F D I C • F RS

vice chairman which had been
vacant since the retirement, in
1964, of Joseph C. Williams. He
has been with the bank sin ce 1930.
Mr. Shewalter, 36, had been
associated with Arthur Andersen &
Company, Chicago, until he joined
the bank as controller January 31,
1965.
NEW YORK: John W. Lapsley and
James A. O ’ Connor have been e le c­
ted vice presidents at Morgan
Guaranty Trust Company.
NEW YORK: Richard G. Hall has
been promoted to assistant secre­
tary at Chemical Bank. Mr. Hall,
in the bank’s correspondent depart­
ment, will represent Chemical Bank
in Minnesota, Wisconsin, North
Dakota, South Dakota and Montana.
NEW YORK: James W. North has
been elected a senior v ice pres­
ident at Chase Manhattan Bank,
N.A. He is group executive of the
personal trust group of the bank’ s
trust department. A ssociated with
the bank sin ce 1951, Mr. North
had been a v ice president since
1961.
NEW YORK: Bankers Trust Company
has named Charles G. Miller, Jr.,
vice president in charge of its
newly-created marketing department.
Mr. Miller, with the bank since
1946, was elected a v ice president
in 1955.
WASHINGTON, D .C .: David C. Motter has been appointed to the post

NEW SE C U R IT Y A G R E E M E N T S FOR D E A L E R S
MOTOR V E H IC L E AND A L L KINDS OF FINANCING
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LAT E NEWS...
DES MOINES: Iowa-Des Moines
National Bank, largest in Iowa,
was robbed last Wednesday of ex­
actly $1,500 by a lone bandit. It
was the first such incident of its
kind in the bank’ s 98-year history.
RED WING, MINN.:Bruce Akerson
has been elected a director of the
First National Bank of Red Wing.
The announcement was made by
President William S. Solberg.
FOREST CITY, IA .: Federal Home
Loan Bank Board has approved a
charter for the Forest Federal
Savings & Loan A ssociation here.

WANT ADS
Rates 25 cents per word per
insertion. Minimum: 12 words.
NORTHWESTERN BANKER
306 15th St., Des Moines, Iowa

TRUST OFFICER WANTED
Age 40 to 45 to head department
with 10 employees, midwestern
bank. Starting salary - $15,000 to
$18,000 plus many fringe benefits.
Submit full information in con fi­
dence to Bankers Service Corpora­
tion, 1301 Register and Tribune
Building, Des Moines, Iowa 50309.
HELP WANTED
In developing an all request mailing
lists -- based on Trade Area Sur­
veys -- that can help you become
more competitive for the farm and
ranch business in the area served
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No. 977 Northwestern Banker is published five times monthly by the Northwestern Banker Company, 306 Fifteenth Street, Des
Digitized forMoines,
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