Full text of The Northwestern Banker : June 8, 1970, No. 1229

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Oldest Financial Journal Serving The Central and W estern States

No. 1229

Des Moines, Iowa

Senate To Draft Nei

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The Senate Banking Committee
will meet in executive session
June 23 to begin discussing a
new one-bank holding company
measure that the committee staff
has begun drafting. Committee
Chairman John Sparkman sent a
letter to all members informing
them of the June 23 session.
Among the provisions likely to
be contained in the draft bill will
be one to authorize the Federal
Reserve Board to write regula
tions to prohibit bank holding
company-affiliate tying arrange
ments, reciprocity and exclusive
dealings.
The basic outline of the draft
bill likely will follow the sug
gestions of Fed Chairman Arthur
F. Burns. It is expected to in
clude the Fed’ s suggested lan
guage for revision of the permis
sible activities language. No
“ laundry list” of prohibitive ac
tivities is likely to be included.
A grandfather clause date —fall
ing between June 30, 1968 and
March 24, 1969 —likely will be
contained in the draft. The Fed
is expected to get complete regu
latory jurisdiction over all hold
ing companies.
The draft also is expected to
include provisions making changes
to broaden the test of control,

June 8,1970

Holding Co. Bill

Senator John Sparkman

cover partnerships and permit
foreign bank holding companies
to retain nonbanking interests.
Nat S. Rogers, president of the
American Bankers Assn., termed
the House' bill a “ destructive
measure” designed to define the
business of banking.
The House measure, adopted in
an atmosphere of “ turmoil and
haste,” would constitute “ bad”
legislation, he said.
The House bill, Mr. Rogers
said, would make it impossible
for commercial banks to partici
pate fully in providing financial
services to the public, and would
deprive the public of the advan
tages of innovative and effective
competition among all financial
institutions.
Without exception, he con
tinued, the prohibited activities
in the House bill —data process

ing, insurance* collective invest
ment funds, travel, leasing and
accounting —are those which are
“ directly related” to providing
financial services to bank cus
tomers.
The basic problem with the
House bill, Mr. Rogers claimed,
is not so much its immediate
impact on banks if it were to be
come law as its future effects.
It strikes at some of the most
innovative techniques available
in finance* he said. And it “ vir
tually guarantees that banking’ s
hands will be tied by reason of
extensive factfinding and litiga
tion arising out of attempts to
interpret” provisions of the bill.
On the sp ecifics of legislation,
ABA stood by these points:
* Endorses the principle that
banks and bank holding com
panies should be limited to those
activities which are financial in
nature, or are functionally re
lated to banking or finance*
* Primary
responsibility
for
determining the scope of bank
operations
should be left in
the hands of the bank regulatory'
agencies.
* Endorses the principle that
whatever legislation is adopted,
for bank holding companies, it
should apply equally to all such
(Continued on back page)

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IOWA NEWS
AMES: The 25th annual Agricultural
Credit School at Iowa State Univer
sity , Ames, is being held June 8—19,
sponsored by The Iowa Bankers
A ssociation
in conjunction with
Iowa State.
CEDAR RAPIDS: Frank J. Stastny,
70, who had retired January 20, 1970,
as executive vice president, First
Trust & Savings Bank, died June 2.
He was a director of the bank at the
time of his death and had served the
bank for 52% years. Mr. Stastny had
been ch ief operating officer from
1950 until his retirement.
DES MOINES: Barney Grangaard,
president and chairman of Central
National Bank & Trust C o., has been
confined to Methodist Hospital, Room
611, in Des Moines, for the past two
weeks with a slipped d isc and slight
aberration. Doctors expect to keep
him there for at least another week
or two, after which he will return to
his home at 20 - 37th Street for fur
ther recuperation.
EAGLE GROVE: The Security Sav
ings Bank plans to open an office in
Woolstock su bject to approval of
state and federal banking agencies.

The announcement was made
C. W. Dunn, bank president.

FAIRFIELD: The Fairfield Golf and
Country Club will be the scen e of the
Group 11 golf day on June 10. The
event is being sponsored by the
Iowa State Bank & Trust Company
and the First National Bank, both of
Fairfield.
GOWRIE: The First State Bank of
Gowrie has announced a contest for
the “ oldest cancelled ch eck ” in
honor of Gowrie’s centennial, July
2 -4 .
MONONA: The FDIC has given ap
proval to the Union State Bank to
change the location of its main of
fice from 100 So. Page St. to 110
So. Main St.
WAUKON: The Waukon State Bank
held open house this past weekend
for its new drive-in bank located at
301 R ossville Road.

NEBRASKA NEWS
ATKINSON: John C. Watson has been
elected president of the First Na
tional Bank to su cceed Leo T.
Adams, who has retired. Mr. Watson
has been chairman of the bank at
Atkinson and also is president of

National Bank of Waterloo

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the First National Bank at O’ N eill.
Mr. Adams was honored at a bank
*
reception on the occasion of his
retirement after more than 50 years
as a Nebraska banker.
AURORA:
President Frank Farr
announces that construction has
started on a new drive-in facility
to be completed in late summer.

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FULLERTON: Dale J. Black has
been elected president of First Na
tional Bank to su cceed the late
Everett M. Black. The new president
joined the bank in 1965.
PICKRELL: Dennis E. Osmera 'has
been named v ice president and cash
ier of Pickrell State Bank. Previous %
ly he was cashier at the Farmers
4
State Bank in Lyman. At Pickrell he
replaces Calvin McClurg, who re
signed as executive v ice president
and cashier to become assistant vice H
president and loan officer at the
DeLay First National Bank in Nor *
folk.
A-

MINNESOTA NEWS
ALBANY: Andrew Peternell, former
officer of the First State Bank, died
recently at the age of 91.

BRECKENRIDGE: Duncan F. Barr,
60, president of the Farmers and
Merchants Bank for the past 11 years,
died recently at his home in Breckenridge. He had been a banker sin ce
1929.

MANKATO: Arthur L. Miller, 32,
formerly regional examiner for the

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YOUR STATE BANKERS ASSOCIATION
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SERVICE OF SECURITY EQUIPMENT

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First National Bank System, has
joined the First National Bank here
as auditor.

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MINNEAPOLIS: Truman L. Jeffers |
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was elected executive v ice president.
of the Minnesota Bankers A s s o c i
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ation on June 2 at a specia l meeting
A V of the MBA executive cou n cil. His
appointment was effective immediate
ly. He replaces Kenneth A. Wales,
whose resignation was accepted at
the meeting. Mr. Wales earlier had
announced he is leaving the a s s o c i
ation to become a v ice president in
the correspondent bank division at
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First National Bank in Minneapolis.
Mr. Wales will continue with MBA
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SOUTH D AKO TA NEWS
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FOURCHE: Staff changes
have been announced at the First
National Bank of the Black Hills by
A. W. Jones, vice president and man
ager of the bank’ s B elle Fourche
o ffice.
William L. Blake has been named
manager of the real estate depart
ment and will continue as manager
of the insurance department.
George D. Keil has been named
manager of the installment loan
department.
William J. Hannah has moved to
the commercial department and was
named assistant manager of the
bank.

COLORADO NEWS
*
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BEAR VALLEY: The First National
Bank of Bear V alley has announced
the election of Kyle J. McClaugherty
to the position of loan officer. Mr.
McClaugherty was with Dial Finance
Co. 10 years until joining the bank
last January.

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DENVER: Purchase of 88 per cent of
the outstanding stock of the North
Denver Bank by Nordenco, a new
Colorado corporation, was announced
recently by L eo Van Dittie, chairman
and president of the new company.
Mr. Van Dittie, of Palm Springs,
C alif., and Sun V alley, Idaho, is a
former vice president of Central
Bank & Trust Company of Denver,
and is chairman of the Fruita State
Bank, Fruita, C olo., and Garden Na
tional Bank, Garden City, Kans.
Other
investors
in
Nordenco
include Max G. Brooks, chairman
and ch ief executive officer of the
Central Bank and Trust of Denver;
Joseph R. Lincoln, v ice president
and general counsel of Central
Bank; Edward Hogan, a Denver CPA,
and L eslie Kehl and Paul Rupp,
Denver attorneys.
The stock was acquired by pur
chasing North Banc Corp., a' onebank holding company, from the
heirs
of
Etienne
Perenyi, who
founded the bank in 1951 and died
last October, and from Neil R. Cul
len, retired auto dealer, who also
resigned as a director, C. G. Theodoran, who has been president of
North Denver Bank sin ce Mr. Pereny i’ s death, has resigned as president
and a director.
Mr. Van Dittie said capital struc
ture of North Denver Bank w ill be
further strengthened by $1.5 mil
lion through the sale of subordinated
capital debentures.
DENVER: Walter A. Woods, 69, died

ANKERS
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W « *st Contact: J. Mason Henry, President

Charles E. Walters Co., Inc.
P. O. Box 1313, Omaha, Nobr. 68101

recently. He was formerly a vice
president and director of the Ameri
can National Bank and was a founder
and president of the Guaranty Bank
and Trust Co.
DENVER: William L. Scoggins, audi
tor of the Greely National Bank,
has been elected president of the
Denver chapter, Bank Administration
Institute. Other new officers in
clude; v ice president, Donald D.
Wise, Cherry Creek National Bank;
secretary is LaVerne H. Andersen,
Fort Lupton State Bank, and treas
urer is Conrad G-. Kern, First Na
tional Bank of Boulder.
ENGLEWOOD: The Republic Nation
al Bank of Englewood has received
approval to establish a branch office
at 701 West Hampden Ave.
GOLDEN: John A. Fortune, president
of the First National Bank, recently
announced plans for a major ex
pansion of that bank, to be completed
early next year.

Three of our men
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Tom Cannon

C ommerce
ILLINOIS NEWS
BETHANY: The FDIC has given ap
proval to the Scott State Bank to
establish a motor facility at 100 East
Main St., Bethany.
CHICAGO: Frank E. Bauder, chair
man of the Central National Bank,
announced the appointment of Wayne
D. Smart, Jr., to the staff as attorney
in the law department.

MONTANA NEWS
HELENA: William D. Erickson has
been elected assistant v ice pres
ident of the First National Bank &
Trust Co. according to an announce
ment made by Harold M. Ormseth,

Lloyd Olson

* *

WYOMING NEWS
CHEYENNE: A. H. Trautwein, pres
ident of the Cheyenne National Bank
and board chairman of the Wyoming
Bancorporation, announced the fo l
lowing promotions at the Cheyenne
National:
Charles L. Scribner from first vice
president to executive vice president
and ch ief executive officer.
T. W. Kerrigan from cashier to
vice president in charge of person
nel.
James G. Melvin from auditor to
cashier.
John P. Moran to installment loan
officer and Mrs. Lucille Morrison
elected assistant cashier.

Holding Co. B ill...
(Continued from Page 1)
holding
companies —whether
bank or multi-bank.

one-

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* B elieves that holding company
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* Supports a “ reasonable” grand
father cla u se
to avoid “ unfair
retroactivity.”
* Urges that legislation not be
enacted until there has been an op
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thoughtful study of the nation’ s
financial system._______ ______________

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M e m b e r Fe de ra l D e p o s it I n s u r a n c e C o rp o r a ti o n
Moines, Iowa 50309.
No. 1229 Northwestern Banker is published five times monthly by the Northwestern Banker Company, 306 Fifteenth Street, Des
Moines
Iowa 50309. Subscriptions 50$ per copy, $6 per year. Second class postage paid at Des Moines, Iowa. Address all mail

subscriptions, changes of address (Form 3579), manuscripts, mail items to above address.
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bank president. Mr. Erickson was
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Bank of Missoula, Montana.

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