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SP R IN G P L O W IN G W IL L SO O N B E G IN
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Federal Reserve Bank of St. Louis
How W c Help Our Farmers W ith Livestock
Page 15
-4-
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For Complete Correspondent Service
O ur w ide system o f corresp o n d en t banks th rou gh ou t Iowa,
su p p lem en ted by years o f ex p erien ce am on g ou r official staff
a ssu res the best o f service at this in stitu tio n .
W e cord ially
in vite the accou n ts o f hanks and hankers w ho want prom p t
service in ro u tin g and clea rin g ch eck s and d rafts, the tran sfer
o f fu n d s and the co n fid en tia l in ter-change o f d ep en d ab le
credit in fo r m a tio n .
A CEDAR R A P ID S B A N K
SERVICING ALL IOWA
MERCHANTS
NATIONAL BANK
OFFICERS
J ames E. H amilton , Chairman
S. E. COQUILLETTE, President
H. N. B oyson, Vice President
Roy C. F olsom, Vice President
Mark J. Myers, V. Pres. & Cashier
George F. Miller, V. Pres. & Tr. Officer
Marvin R. S elden, Vice President
F red W. S m ith , Vice President
J ohn T. H amilton II, Vice President
R. W. Manatt , Asst. Cashier
L. W. B roulik, Asst. Cashier
P eter B ailey, Asst. Cashier
R. D. B rown, Asst. Cashier
0 . A. Kearney, Asst. Cashier
S tanley J. Mohrbacher, Asst. Cashier
E. B. Zbanek , Building Manager
'c*
uè
Cedar Rapids
Iowa
Member Federal Deposit Insurance Corporation
N orthw estern Banker, published m onthly by the D e Puy Publishing Company, Inc., at 527 7th Street, D es M oines, Iowa.
Subscription, 35c per copy, $3.00 per year. Entered as second-class matter at the D es M oines post office. Copyright, 1941.
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Federal Reserve Bank of St. Louis
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OFFICERS
WM. J. GOODWIN, Chairman of Board and P resident
E. F. BUCKLEY, V ice-P resident
FRANK R. WARDEN, V ice-P resident
A. T. DONHOWE, V ice-P resident
LEHMAN PLUMMER, V ice-P resident
J. R. CAPPS, Cashier
JOHN W. HAWK, A ssista n t V ice-P resident
EMMET E. JOHNS, A ssista n t V ice-P resident
FRED H. QUINER, A ssista n t V ice-P resident
IRWIN ABRAM, A ssista n t Cashier
G. W. BARTMESS, JR., A ssista n t Cashier
J. E. QUINER, A ssista n t Cashier
H. C. WINDER, A ssista n t Cashier
D. R. WITHINGTON, A ssista n t Cashier
I. L. WRIGHT, T ru st Officer
GEO. L. NISSLY, A ssista n t T ru st Officer
t-
/
‘Iowa’s Friendly Bank’
CENTRAL NATIONAL BANK
AND TRUST COMPANY
M E M B E R
F E D E R A L
D E P O S I T
I N S U R A N C E
C O R P O R A T I O N
N orthw estern Banker
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Federal Reserve Bank of St. Louis
March 19ft l
4
U(\MVi nsurance
™
flUMlJ
COMPANY
NEW Y O R K
S T A T E M E N T
•
D E C E M B E R
3 1 ,
1 9 4 0
A d m itte d A ssets
Cash in Office, Banks and Trust Companies................... $ 24,549,296.62
Bonds and S to ck s...............................................................
87,947,462 42
First Mortgage L o a n s .....................................................
371,827.00
Premiums uncollected, less than 90 days due . . . .
9,393,129.47
Reinsurance Recoverable on Paid L o s s e s ..................
1,241,546.24
Other Admitted A s s e ts .....................................................
223,654.08
$123,726,915.83
Liabilities
Capital S t o c k ........................................................................ $15,000,000.00
Reserve for UnearnedP r e m i u m s ...................................
55,020,615.00
Reserve for L o s s e s ..........................................................
8,192,729.00
Reserve for T ax e s...............................................................
2,350,000.00
Reserve for MiscellaneousA c c o u n ts ..............................
670,974.12
Funds and Securities Held under Reinsurance Treaties .
178,218.08
NET SU R PL U S.....................................................
42,314,379.63
$123,726,915.83
NOTE: In accordance with Insurance Department requirements—Bonds amortizable are
carried at amortized values. Insurance stocks of affiliated companies are carried on basis of
pro-rata share of Capital and Surplus. All other securities at Market valuations. Securities
carried at $3,078,370.00 and cash $50,000.00 in the above Statement are deposited as required
by various regulatory authorities.
-f-------------------------------------------------------- D irectors-------------------------- ----------------------------- +L e w is L. Clarke
W ill ia m S. Gray
C harles G. M eyer
W ill ia m L. D e B ost
W ilfred K u rth
E d w in A. B ayles
G ordon S. R en tsc h ler
R obert G oelet
H erbert P. H ow ell
M ortimer N. B u ckn er
P ra nk E. P a r k h u rst
G eorge M cA n en y
G uy C ary
H arold Y. S m it h
H arvey D. G ibson
4------------------------------------------------------------------------------------------------------- _+
FIRE
• AUTOMOBILE
S T R E N G T H
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Federal Reserve Bank of St. Louis
• MARINE
•
and
AI . L I E D
LINES
R E P U T A T I O N
•
OF
INSURANCE
S ERVI CE
The State Turns to La Monte for PRO TECTIO N !
W hen a p olice officer d em an d s your licen se
Papers, w ith the State's se a l or in sig n ia
y o u a re in tro u b le if y o u c a n n o t im m e
incorporated in the paper. » » La M onte
diately produce docum entary e v id en ce of
Safety P apers w ere d e v e lo p e d 70 y ea rs
ow nership of the car an d of your right to
a g o a s a m ea n s of sa feg u a rd in g checks
drive it. » » Operators' licen ses should be
a n d oth er n e g o t ia b le in str u m en ts. T h ey
p r o te c te d a g a in s t a lte r a tio n a n d c o u n
h a v e proved so em inently satisfactory that
te r feitin g . » » T hat's w h y
th ey are recogn ized a s the "standard of
m an y States h a v e th ese,
sa fe ty " for th is p u r p o se . » » T o d a y , o u t
a s w e ll a s oth er im
stan d in g b u sin ess organizations from coast
portant forms, printed
to coast, including m ore than 75% of the n a
on La M on te S a fe ty
tion's largest banks, u se an d endorse them.
GEORGE LA MONTE & SON
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Federal Reserve Bank of St. Louis
N u t l e y ........................................ N e w J e rs e y
6
BETTER FIXTURES —
BETTER E MP L O Y E S
C 3 OOD
bank fixtures
em ploye morale.
are
a to n ic
to
They increase the e ffi
ciency o f both officers and employes and
create p rid e and loya lty th ro u g h o u t a bank.
Banks are finding it p ro fita b le to m o d e rn
ize in fixtures as well as routine eq uip m e nt
and we suggest now is the tim e fo r you to
remodel your banking home.
LET FISHER SOLVE YOUR
REMODELING
PROBLEM
Having our representative call and talk the m atter over
will not place you under any obligation to buy from us.
B A N K
N orthw estern B anker
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Federal Reserve Bank of St. Louis
March Í 9 f l
F I X T U R E
H E A D Q U A R T E R S
n o b %h w e
/ tern
M A R C H
19 4 1
F O R T Y -S IX T H Y E A R
NUM BER 644
Oldest Financial Journal West of the Mississippi River
IN THIS ISSUE
Editorials
Across the Desk from the Publisher.
CLIFFO R D DE PUY
Publisher
RALPH W. M O O R H E A D
Associate Publisher
HENRY H. H A Y N ES
Editor
J. STUART D A V IS
Associate Editor
527 Seventh Street,
Des M oines, Iowa
Telephone 4 -8 1 6 3
8
Feature Articles
Frontispiece ......................................................................................................................
We Will Defend Like We Pioneered—Hell-for-Leather.............. John R. Buckley
News and Views....................................................................................Clifford De Buy
“I W ant to See How it Seems to Do the Things
I Want to Do”..........................................................................George J. Schaller
Legal Department—Property T ransfer and Inheritance Taxes.............................
How We Help Our Farm ers With Livestock..................................... Warren Garst
Northwestern Banker Digest of Bank Management.................................................
W hat They Said at the Mid-Winter T rust Conference.............................................
10
11
12
13
14
15
17
18
Insurance
Good Claim Service Is Good Selling..................... ........................Wilson G. Jainsen 23
Bonds and Investments
The Month’s M arket Maneuvers............................................... ...... James H. Clarke 29
Why Investment Dealers Oppose Compulsory Competitive Bidding.....................
.................................................................................................. ................ Winfield Jackley 30
State Banking News
N E W Y O R K OFFICE
Frank P. Syms
V ic e President
505 Fifth A v e .
Suite 1202
Telephone M Urray H ill 2 -0 3 2 6
M IN N E A P O L IS OFFICE
Jos. A . Sarazen
Associate Editor
Telephone Hyland 0575
N ebraska News ........................................................................................................................
Omaha C learings ..........................................................................................................
Lincoln Locals ..............................
South D akota N ew s.................................................................................................................
M innesota News .............................................................................................................
Twin City N ew s............................................................................
N orth D akota New s........................................................................................
M ontana News ..........................................................................................................................
Iowa News ..................................................................
Two Iowa G roups Hold A nnual M eetings...............................................................
P ictu res Taken a t Sioux City and B u rlin g to n................ ..................................55,
Iowa News from H ere and T here...............................................................................
35
37
39
41
43
45
47
48
49
54
57
59
The D ¡rectors’ Room
A Few Short Stories to Make You L au g h ........................................................................ 70
MEMBER
A u d it Bureau of Circulations
Financial Advertisers Association
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Federal Reserve Bank of St. Louis
Across the Desk
From the Publisher
Our Gold Is
No matter what any dictator
Still Good
ma^ saU our
£00(^
and they would like to have it.
Also, when crackpot legislators try to work out
some plan to substitute managed paper money for
the historic gold standard after the war, they are
charting a wrong course for their country.
Dr. E. W. Kemmerer, Professor of International
Finance at Princeton University, puts it this w ay:
‘‘The fact that gold maintains such high value
in terms of goods, in face of an enormous increase
in its rate of production and in spite of the almost
complete discontinuance of the gold standard
throughout the world outside of the United States,
is evidence of a powerful demand for gold, for the
value of gold, like every other commodity is the
resultant of the interaction of the forces of demand
and supply. Modern ‘Alice-in-Wonderland’ eco
nomic policies may often obscure this fundamental
law, but they have not repealed it.
“ Gold continues to be the most universally de
sired of all commodities, and the most highly ex
changeable commodity in the world. Of all eco
nomic goods, it is the one in which the public has
the most confidence in times of great danger like
the present.”
Thus, our gold is still good, and will be for a
long time to come.
The job of every banker today
Keep Your
is
to keep his customers pleased.
Own Staff
But, before he can do that, he
Pleased First must have his own organization
and his own staff pleased and satisfied with their
own situation.
An unhappy and dissatisfied employee will never
secure a satisfied and happy bank customer.
As one prominent banker put it recently:
N orthw estern B anker
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Federal Reserve Bank of St. Louis
March 19^1
“ Good public relations are based on good em
ployee relations. You cannot expect the sup
port of the public if your own staff is dissatis
fied, unhappy, inefficient, or if it is not properly
equipped to truly represent you.”
It is therefore important that you see that your
own employees and your own associates truly rep
resent you as you would like to have them, and if
that is the case, you must keep them pleased and
satisfied so that they, in turn, can maintain the
best possible relations with your customers and
prospective ones.
Dr. William A. Irwin, Edu
Our Economic
cational
Director of the Amer
Seed Corn
ican Institute of Banking, in
a recent address discussed the subject “ Private
Property—Our Economic Seed Corn” .
This was a discussion of the capitalistic system
and the phases of onr growth and development in
the United States.
He pointed out most emphatically that our cap
italists are the individual savers and individual
owners of stocks and bonds throughout the nation,
and that they are not the wealthy, plutocratic class
at whom so many political brickbats have been
thrown the past eight years.
As Dr. Irwin says:
‘‘Perhaps the tide will turn. The American peo
ple are great believers in individualism and in the
right of private property. It will not be easy to
get them to swallow the doctrines of collectivism,
especially if they can be effectively shown the ends
to which those doctrines lead. I do not think they
will sit at ease when they realize that it is their
savings, their life insurance, their annuities, their
stocks and bonds, their ‘seed corn’ that is being
eaten up in the administration of plans and schemes
9
that must eventually bring about the destruction
of the economic system to which they have been
accustomed and in which, I am convinced, they
still believe. It is my rooted conviction that the
talk about ‘plutocratic democracies’, ‘vested
wealth’, ‘exploiters of the poor’, ‘forgotten men’,
‘malefactors of great wealth’, and every other
catchword will fall on deaf ears if only those whose
earnings and savings are being eaten up can be
brought to see that they, and they inevitably, must
pay the bills by having their seed corn taken from
them. ’’
As each individual citizen realizes that, no matter
what his position in our economic structure may
be, he will have to pay his share of our spendthrift
program, he will take a greater interest in seeing
that officials and representatives are sent to Wash
ington who will do his bidding and who will have
at least a sufficient knowledge of arithmetic to
know how to subtract instead of constantly adding
to our national debt.
Comptroller
Preston Delano, compllrges Changes troller of tlle currency, in his
in Law
annual report to Congress has
recommended several changes
in the Banking Law. But the most important of
these are two which are as follows:
1. Prohibit the operation of banks by holding
companies.
2. Enforce compliance of national banks to or
ders of the Comptroller by forbidding them to
declare or pay dividends until orders are com
pleted.
Regarding the holding company legislation, Sen
ator Carter Glass who introduced this bill has been
rather luke warm on it according to reports and
the chances are that it will not pass.
In connection with the second plan of enforcing
compliance of national banks to orders of the Comp
troller by forbidding them to pay dividends this
will take the place of laws now on the books which
are either too mild or too drastic of enforcement
according to the Comptroller.
Whether Congress will pass either one of these
laws remains to be seen, but it shows what is in the
mind of the National bank head.
Starting eight years ago the
Liquidate
present
administration told the
Competitive
country that we were having one
Government emergency after another and then
Agencies
as a result of these “ so-called
emergencies” competitive government financial
agencies were set up supposedly on a temporary
basis.
Many of these agencies have continued long
after their functions were not needed and they
should now be liquidated as rapidly as possible.
When the bankers of Group One met at Sioux
City last month, a resolution emphasizing this point
was passed and it read as follows :
“ We are opposed to any unnecessary Gov
ernment competition in our particular field;
while a number of the agencies set up by the Gov
ernment a few years ago were possibly of value
at the time of their organization, it is the feeling
that these were set up under emergency conditions
and it is our best judgment that this emergency
has long since passed and that the banks are both
able and willing at the present time to take care
of any legitimate call on them for credit purposes,
and that the unnecessary Government agencies
should be placed on a program of orderly liquida
tion. ’’
Banks have billions of dollars ready to loan
and there is no reason why they cannot adequately
serve ah the financial requirements needed during
our present war preparations.
Competing Government agencies should be
liquidated, not drastically but in an orderly fashion,
as early as possible.
Should Dispose
Leo T- Crowley, chairman
of Non-Ban kina
Federal Deposit Insurn
ir i i
ance Corporation, said that
Keal estate
in,nwas the
,, , .
. . .its
1940
best year m
history. He pointed out however that
“ There are still banks with capital so depleted
or inadequate and with such high proportions of
inferior assets that they would not be able to with
stand a downward trend in values.”
He therefore believes that banks should avail
themselves of this period of rising values to better
their situation and he urges that, “ With increas
ing industrial activity and the return of values to
a more normal figure, banks should exert every
effort to dispose of their non-banking real estate
and similar assets.”
The point is, that if banks strengthen their sit
uation by eliminating non-banking real estate and
other undesirable assets in a period of rising values,
then they will be in a better position, like any other
business, to withstand periods of diminishing
profits.
It is interesting to note in Chairman Crowley’s
report that since January 1, 1934, when the FDIC
went into operation, disbursements to depositors of
insolvent or hazardous insured banks has amounted
to $228,000,000 and it is estimated that about 80
per cent of this is recoverable.
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March 1941
10
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Federal Reserve Bank of St. Louis
11
W e W ill Defend Our Hemisphere
Like W e Pioneered Our
Continent— H ell~ fo t - LßCthct
N discussing our problem s we find
By John R. Buckley
th e re are different ones to m eet in
Cashier
th e larg er b anks and different ones
S ta te Bank of Prairie C ity
in th e sm aller in stitu tio n s, although
Prairie C ity, Iow a
th e fu n d am en tal problem is very
m uch alike in all—th a t of operatin g a
safe b an k and a t a profit.
To m ost of us, I believe, th e ques
tion of o u r N ational D efense and Aid
W e have bu ilt th ree m illion miles
to B rita in is m ost vital. On th is very
of paved roads and left hot dog stands
vital question we find a g re a t differ and ju k e shops strew ed along th e
ence of opinion and m uch confusion way. W e have a shifting, changing
in th e m inds of th e people, for we population th a t is m oving about so
have one group of w ell inform ed m en
telling us th a t we should give im
m ediate aid to G reat B ritain , and an
equally w ell inform ed group telling
us it is en tirely u n n ecessary —th a t we
are not in any im m ediate danger.
I som etim es w onder if we still be
lieve in th e A m erican dream . Maybe
we still believe it possible to leave a
b e tte r c o u n try for our child ren and
to give th em m ore o p p o rtu n ities th a n
we ourselves had. W e m u st not for
get th a t w hen w h ite m an found th e
U nited States, its b road acres w ere
covered w ith rolling p ra irie s and tree
clad hills. It is said th a t a b ird could
cover a stre tc h of a th o u san d m iles
th ro u g h th e w ooded co u n try on its
flight from lim b to lim b w ith o u t ever
casting a shadow upon th e earth .
JO H N R. B U C K L E Y
H alf of th e co u n try w as covered w ith
b eau tifu l and valuable forests w hich
rap idly we h ard ly know w here to
yielded to th e u n scru p u lo u s axe and
find it. W e are a n atio n on wheels.
th e h u n g ry to rch of m an laying bare
One in every five of us ow ns a car or
the soil.
a truck. E v ery sev enth person has
The A m erican d esert is now th re e
a telephone, every fifth a radio, and
tim es larg er in area th a n it w as w hen
over 90 p er cent of the people can
first discovered. Yet, w ith all our
recklessness w e have th e only first read and w rite.
Yet for all our shortcom ings we
class n atio n in th e w orld today.
W e have th e h ig h est stan d ard s of are in the y ear 1941, th e only people
in the w orld living as free m en, able
living for our w o rk ers, we have m ore
ch ild ren in free schools, w e have be to w orship a t our own altars and
come th e b est scientists, th e b est speak our own faith. The real d an
gers to A m erica are of our own m ak
chem ists, th e b est engin eers and th e
ing.
best doctors in th e w orld. W e have
We have bu ilt in d u strial m achines
th e b est tra n s p o rt system in th e air
w e do n o t und erstan d . A reckless,
an d on th e ground. W e have th e
m ost accu rate an d th e m ost free press wild-eyed race, we have seriously
and we have m ore religions and m ore dam aged th e co n tin en t on w hich we
political th eo ries th a n any o th er peo live. W e have left an eroded, c u t
over, w o rnout land in thousands of
ple.
I
acres. Possibly we have learned some
lessons, for at p resen t we have a
legion of educated agronom ists w ork
ing on a gigantic soil conservation
program . F o rtu n a te ly we have set
aside 175,000,000 acres of forest lands
for th e use of our children.
W e have in five y ears b ro u g h t m ore
w ild ducks back to our w aters th a n
we have seen in years. W e are be
ginning to u n d erstan d th e m eaning
of conservation, and we are sta rtin g
none too soon on th is belated pro
gram of general conservation of our
n ational resources.
A fter th ree centuries of refuge from
th e Old W orld and its race h atred s
we have lost forever our isolation
and our chance to w ork out our own
destiny un tro u b led by th e o ther half
of th e globe. Now to defend our
co u n try every one of our 131,000',000
people are going to be called upon for
all th e pow er and stre n g th and cour
age th ey have to p reserve the only
free natio n in th e world.
N ot only do we propose to defend
th e N orth and South A m erican Conti
nents, b u t we propose to defend the
w aters of th e Pacific, w est from Bei’ing Sea to the Philippines on the South
C hina Sea. We propose to defend the
w aters of th e A tlantic from the Bay
of F u n d y south to th e S traits of Ma
gellan and east to th e shores of
Africa. W h at w e are u n d ertak in g to
defend is half of th e surface of the
globe, one-eighth of th e population of
th e w orld, and about 30 per cent of
th e land. W e propose to build up a
diplom atic fro n t as w ell as a m ilitary
front. W e need tra in e d diplom ats
w ho know th e languages of the L atin
countries, w ho know th e ir histories,
and w ho can discuss th e ir custom s,
th e ir art, th e ir m usic, th e ir philoso
phies and th e ir legends.
W h atev er th e outcom e of th e w ar
betw een th e B ritish and th e F ascist
pow ers, a rev o lu tio n ary philosophy
in w hich not w ar, b u t m ass m urder,
is being waged. It is not a philosophy
in w hich arm ies are sen t against
arm ies, b u t in w hich m ass m urder,
to rtu re and starv atio n of w hole popuN orthw estern Banker
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Federal Reserve Bank of St. Louis
March 19)1
12
lations have been the w eapon of th e
invader.
H ow are we to defend?
W e have m ade plans for an arm y
of 4,000,000 m en, a two-ocean navy
and an air corps of 50,000 m en. In
carry in g out th is g re a t plan of N a
tional Defense, we need a new gen-
eratio n of pioneers, a g eneration to
settle and hold th e New W orld. We
can defend a hem isphere only in the
w ay we settled a continent, Hell-forleather. W e can do it only in th e
w ay we shoved railroads across a
continent. W e can do it only if we
keep alive our legends and our faith.
News and V iews
O F THE
B A N K IN G
W ORLD
By Clifford DePuy
The b an q u et a t th e P alm er H ouse
to h onor George J. S ch aller as he re
tire d from his $35,000 a y e a r position
as p resid en t of th e F ed eral R eserve
B ank of Chicago on M arch 1st, w as a
v ery fine affair. Mr. S challer served
th e b an k for 11 y ears (1930 to 1941)—
four y ears as a d irecto r an d seven
y ears as G overnor and P resident.
T he Chicago R eserve B ank is th e
second larg est in th e U nited States,
and has 856 m em bers and $8,000,000,000 in deposits.
T he p a rty w as held in th e R ed
L acquer R oom —don’t confuse th is
w ith th e Red Liquor R oom —although
“liqu id atin g d ividends” w ere obtain
able for those w ho desired them .
F ran k J. L ew is, C hairm an of th e
Bank, w as in F lorida, b u t sen t a con
g ra tu la to ry teleg ram to Mr. Schaller.
Clifford V. Gregory, D eputy C hairm an,
w as to astm aster, an d a v ery fine one.
N icholas N oyes spoke “F o r T he B oard
of D irectors.” W m. M cC hesney Mar
tin, re tirin g p resid en t of th e St. Louis
F ederal R eserve Bank, spoke “On Be
half of O ther FR B S ister B anks,” b u t
he forgot th e b an q u et w as to h onor
George and gave a long h isto ry of th e
R eserve System .
Im p ro m p tu talk s “F ro m Old F rien d s
and N eighbors” included W. C. Jarnagin, E d ito r from S torm Lake; H er
bert L. H orton, p resid en t of th e IowaDes M oines N ational B ank & T ru st
Company, and Clifford De P uy, P u b
lish er of th e N o r t h w e s t e r n B a n k e r .
M. S. Szym czak of W ashington, D.
C., spoke “F o r T he B oard of G over
no rs,” and he m entioned George a few
tim es and th e n asked 15 questions on
c u rre n t ban k in g an d financial p ro b
lem s w hich we, as a nation, m u st a n
sw er if w e can.
Charles G. D aw es follow ed Mr.
Szym czak and said th a t m ost of th e
15 problem s w ould be solved if th e
U nited S tates k e p t out of w ar, and
N orthw estern B anker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
March 19k t
em phasized th a t du rin g th e p ast 141
y ears in E urope, th e re have been only
five y ears w hen th ey w eren ’t a t w ar.
He paid a fine trib u te to P resid en t
Schaller an d his executive ability in
guiding th e affairs of th e F ed eral Re
serve B ank of Chicago.
I t w as th en P resid en t Schaller’s
tu rn to respond, and he did so in a
v ery appreciative and v ery ap p ro p ri
ate m anner.
A cting as hosts for th is v ery de
lightful affair w ere: H. P. P reston,
F irs t Vice P resident, J. H . Dillard,
Vice P resident, W . H. Snyder, Vice
P re sid en t and Cashier, C. S. Y oung,
Vice P resident, and C. B. D unn, Gen
eral Counsel.
W hen P otter P alm er w as alive, he
h ad a strik e one n ig h t of his w h ite
w aiters, ju s t before a big banquet. He
h u rrie d ly secured some colored ones
to help him out, w hich th ey did.
T h ere have alw ays been colored
w a ite rs a t th e P alm er H ouse since
th a t tim e, and in his w ill P o tte r P al
m er expressed th e w ish th a t colored
w aiters alw ays be em ployed there, and
th e y alw ays have been. M any of them
now are on a pension system , estab
lished by th e hotel.
W alter “B u d ” A llen and N orm an B.
Shaffer, vice presid en ts of th e Conti-
nental-Illinois N ational B ank and
T ru st Com pany of Chicago, w ere
“to u rin g ” th e Middle W est last m onth,
calling on friends and custom ers. T hey
stopped a t th e N o r t h w e s t e r n B a n k er
office to say “hello.”
A t th e last call th e C ontinental-Illinois h ad deposits of over $1,491,000,000.
W hen P reston E. Reed, E xecutive
Vice P resid en t of th e F in an cial A dver
tise rs A ssociation, m oved into his new
offices a t Suite 2054, 231 South LaSalle
S treet last m onth, C hester L. Price,
A dvertising and Publicity M anager of
the City N ational B ank & T ru st Com
p any of Chicago, sen t P resto n a p lan t
w hich he called “C ivilyia,” w hich
bloom s every 20 y ears and has to be
w atered tw ice daily and k ep t in th e
sun.
W hen P res w as at th e Board M eet
ing in C leveland recently, Chet sent
him a telegram signed by L u cy David,
P re sto n ’s secretary, w hich
read:
“Civilyia a p p aren tly dying. W hat
shall I do? L ucy.”
W hy th e office should w ait 20 years
for blooms from “Civilyia” is m ore
th a n we know , w hen L u cy is a per
petual A m erican B eau ty and bloom s
every day.
P. S. The an n u al convention of the
F in ancial A dvertisers A ssociation has
been officially announced for Septem
b er 8, 9, 10 an d 11 a t th e H otel S tatler
in Cleveland.
R. A. Cihak, C ashier of th e Com
m ercial S tate B ank of W agner, South
D akota, atten d ed th e m eeting of Group
One of th e Iow a B ankers A ssociation
at Sioux City last m onth.
Mr. Cihak, w ho has long been active
in South D akota banking, advertises
th e fact on his letterh ead th a t the
Com m ercial S tate B ank is located in
“South D akota’s Corn B elt.”
A lb ert J. R obertson, vice presid en t
of th e Iowa-Des M oines N ational B ank
and T ru st Company, w as re-elected
p resid en t of th e C om m unity Chest
Board for 1941.
Mr. R obertson has alw ays been ac
tive in com m unity affairs, and has
m ade a m ost enviable record in con
nection w ith his C om m unity Chest
activities.
A ccording to th e Census B ureau,
A m ericans spend $1,000,000,000 a year
on am usem ents.
T he average A m erican fam ily spent
$30 in one or m ore of 44,917 places of
am usem ent du rin g 1939. Of th a t sum,
$20 rep resen ted th e share th a t th e 15,115 m otion pictu re th e a tre s took from
each fam ily.
W ith an average adm ission fee of
25 cents, th e b u reau said, every A m eri
can of m ovie-going age sees a film
every tw o weeks.
The B ureau of A gricultu ral E co
n om ics rep o rts th a t fa rm e rs’ cash in
come from m arketings, com m odities
placed u n d er loans, and governm ent
benefit paym ents totaled $9,120,000,000
in 1940, or th e larg est since 1937 w hen
it w as $9,155,000,000.
T his am ount also w as 5.2 p er cent
(T u rn to page 20, please)
13
7
w a n t to see
how i t seems
to do the things
I w a n t to d o "
is 49 y ears since I sta rte d to w ork
in a b an k in Storm Lake (Mr.
Schaller w as 18 th en ) and I w ant
to go back and see h ow it seem s to
do the th in g s you w an t to do
rath er than the th in g s that you
m ust do.
G E O R G E J. SC H A L L E R
R etires as President of the
Federal R eserve Bank of Chicago
. s c h a l l e r , w ho has
been head of th e F ed eral R e
serve B ank of Chicago since
Ja n u a ry , 1934, re tire d M arch 1, 1941,
a t th e age of 67 and w ill re tu rn to his
hom e in S torm Lake.
A t th e tim e Mr. Schaller w as ap
poin ted “A cting G overnor” of the
F ed eral R eserve B ank of Chicago, th is
sta te m e n t app eared in th e Ja n u a ry ,
1934 issue of th e N o r t h w e s t e r n
eorge j
G
B a nker:
“George J. Schaller, w ell-know n
Iow a b a n k e r from Storm Lake,
h as been elected actin g g o vernor
of th e F ed eral R eserve B ank of
Chicago. Mr. Schaller tak es over
th e d uties of G overnor Jam es B.
M cDougal, w ho has been g ran ted
an extended leave of absence.
“In 1902 Mr. Schaller and his
fa th e r organized th e Citizens
B ank of Storm Lake, now the
C itizens F irs t N ational B ank, and
he h as been p resid en t of th e in
stitu tio n since th e d eath of his
fa th e r in 1922. N ow w ith addi
tional duties, it is expected he w ill
re tire from th e presidency of his
bank.
“Mr. Schaller brings to his posi
tion as acting governor of th e
F ed eral R eserve B ank a w ealth
of successful banking experience,
both th ro u g h his p riv ate in te r
ests, and th e fact th a t he has been
a F ed eral R eserve Class A direc
to r since 1929.”
B elieving th a t Mr. Schaller m ight
like to have som ething to say to his
m an y friends in th e S eventh Federal
R eserve D istrict, th e N o r t h w e s t e r n
B a n k e r asked him for a statem en t of
his plans, and received th e following
v ery in terestin g le tte r from him:
“I do n ot know th a t th ere is
m uch I can add, fu rth e r th a n to
say th a t I expect to give m y tim e
and atte n tio n to m y various farm
and o th er interests, and w hile not
tak in g an active p a rt in th e opera
tions of th e Citizens F irs t N a
tional Bank, I do expect to keep
in close contact w ith banking de
velopm ents
and
my
b an k er
friends th ro u g h o u t th e state. It
“If any honor or advancem ent
has come to me th ro u g h recent
years, it has been largely th ro u g h
m y Iow a b an k er friends, including
“ N o r t h w e s t e r n B a n k e r ,” and th is
indebtedness I recognize and hope
to be able to repay from tim e to
tim e in at least a sm all m easure.
“One of m y reasons for com ing
to th e F ederal R eserve B ank of
Chicago w as to endeavor to pro
m ote a m ore friend ly relationship
betw een th e F ederal R eserve Sys
tem and th e banks of th is district.
W e all have in m ind some of the
‘sore spots’ after th e troublesom e
y ears of 1929-1933, w hich w ere in
evitable in such a crisis, and if I
have succeeded in a sm all w ay in
b ringing about a b e tte r feeling be
tw een the m em ber banks and the
System , I shall feel fully repaid. I
feel very strongly th a t th e Sys
tem needs th e b ank m em bership,
and, on th e o th er hand, th e banks
a t th is tim e have a g reater need
for m em bership th an a t any p re
vious tim e.”
As Mr. Schaller decides “to do the
things he w an ts to do ra th e r th a n the
th in g s he m ust do,” th e N o r t h w e s t e r n
B a n k e r is sure th a t his hu n d red s of
friends w ill w ish him continued suc
cess, good luck and good health.
N orthw estern B anker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
March 19bl
The Transfer of Property
and Inheritance T0X6S
B lack ington , a South D akota banker,
sold a farm in th a t state in a reg u lar
business tran sactio n to G ran t for an
adequate consideration. In th e deed
he reserved for him self a life estate.
The in h eritan ce ta x law s th e re im pose
a tax on the tra n s fe r of p ro p e rty in
tended to tak e effect in possession or
enjoym ent only a fte r th e g ra n to r’s
death. W hen B lackington died and
G rant took over th e p ro p e rty w as
G rant obliged to pay an in h eritan ce
tax thereon?
No. The purpose of the statu te w as
n ot to im pose an in h eritan ce tax upon
tran sfers of property m ade in the or
dinary course of b u sin ess for adequate
consideration, but upon those m ade by
deed w hen such in stru m en t is intended
to and does accom plish w h at a w ill
w ould have brought about, that is, pass
property to an oth er to take effect in
p ossession or en joym en t after the
death of the grantor. A s a consequence
no in heritan ce tax w as payable by
Grant.
In som e states a m ortgagee of realty
m ay assum e possession and control of
th e m ortgaged prem ises w ith o u t form
ally foreclosing th e m ortgage. W here
th is is th e case and a b an k holding only
a m ortgage on certain p ro p e rty takes
it over and o perates it on its abondonm ent by th e ow ner, m ay th e b an k be
liable for p ersonal in ju ries as a re su lt
of defects therein?
Yes. So far as liab ility for personal
in ju ries to a ten an t is concerned, it is
im m aterial that the landlord has no
title to the leased p rem ises excep t by
w ay of a m ortgage. If he has assum ed
control OA'Cr them upon the m ort
gagor’s abandonm ent of the property,
he m ay be liable.
These and Other Timely Legal
Questions Are Answered
By the
LEGAL DEPARTMENT
D e p o sits fo r fe ite d w h e n a n o th e r
fa ils to e x e r c ise an o p tio n fo r th e p u r
c h a se o f r e a lty h a v e g e n e r a lly b e e n
h e ld n o t to be su b je c t to in c o m e ta x
fo r th e y e a r in w h ic h th e y Avere r e
c e iv e d b y th e ta x p a y e r , Avhere it w a s
im p o ssib le to d e te r m in e u n til a su b
s e q u e n t y e a r Avhether or n o t th e y
w o u ld b e ta x a b le .
T h e OAvner o f a ll the stock, except a
few qualifying shares, en tered into a
co n tract w ith a b an k er w hereby he
w ould tra n sfe r to him certain shares in
consideration of th e b an k er doing cer
ta in th in g s for him. The b an k er ful
filled his end of th e bargain b u t the
ow ner of th e stock refused to m ake the
tra n sfer. T he stock had no recognized
m a rk e t value and w as not readily ob
tainable except from th e ow ner. Could
th e b a n k e r m ain tain an action for
specific perform ance to com pel the
tran sfer?
Y es. A c o n tr a c t fo r th e tr a n s fe r o f
sto c k in c o n sid e r a tio n o f se r v ic e s
r e n d e r e d w ill be sp e c ific a lly en fo r c e d
Avliere th e sto c k h a s no r e c o g n iz e d
m a r k e t v a lu e an d is n o t r e a d ily p ro
c u ra b le e x c e p t fro m th e p e r so n o b
lig a te d to c o n v e y . I f th e sto c k Avere
a c tiv e ly tr a d ed an d r e a d ily a v a ila b le ,
th e b a n k e r Avould h a v e b e e n h e ld to
h a v e a n a c tio n fo r th e m a r k e t A^alue
r a th e r th a n fo r sp ecific p e r fo r m a n c e in
th e a b se n c e o f so m e o th e r sp e c ia l c ir
c u m sta n c e .
N o. A str a ig h t b ill o f la d in g c a n n o t
be n e g o tia te d fr e e fr o m e x is tin g e q u i
tie s a n d th e b a n k ca n n o t r e c o v e r from
th e ca r r ie r eAre n th o u g h it is su e d a
fa lse b ill o f la d in g . T h e ca rrier AvTas
w ith in it s r ig h ts, if it AA’is h e d to do
so , to d e n y th e r e c e ip t o f th e g o o d s
to th e sh ip p e r a n d it c o u ld a s s e r t th is
sa m e r ig h t a g a in s t th e b an k .
The daughter of an Iow a b an k er ob
tain ed a divorce from h er husband in
th a t state. The decree provided for an
allow ance of alim ony for the su p p o rt
of h erself and th e m inor ch ildren of
th e union. T he only p ro p erty th e h u s
band had w as a farm th a t w as oc
cupied by him as a hom estead. As such
it w as n ot subject to th e claim s of his
creditors. W as th e alim ony allow ance
a pro p er charge g ainst it?
Yes. It Avas com p eten t for the trial
court in its divorce decree to m ake
charges again st it to secure such p ay
m ent.
B e c k e r o b ta in e d a $5,000 life in su r
ance policy in Iowa. In his applica
tion he m ade certain m aterial m isrep
resentations. T he policy provided th a t
it w as incontestable after being in
force tw o years. B ecker died sho rtly
a fter th e policy w as issued. T he insu ro r did not m ove to contest th e
policy w ith in tw o y ears after its date.
Some th ree y ears after B ecker’s death
th e beneficiary sued on th e policy.
Could th e in su ro r contest it?
N o. W h e r e a life in s u r a n c e p o lic y
p r o v id e s th a t it AAill b e in c o n te sta b le
a fte r b e in g in fo r c e tAVO y e a r s, th e
p o lic y b e c o m e s in c o n te sta b le a fte r tAvo
y e a r s fro m its d a te, n o tw ith s ta n d in g
th e d ea th o f th e in s u r e d w ith in th e
tw o -y e a r p erio d .
ft
A lum ber com pany b ro u g h t su it to
Quite often d eposits are received on
options to pu rch ase re a lty in one y ear
and are forfeited in circum stances
w here it is im possible to determ ine
un til a sub seq u en t y e a r w h e th e r or
no th e y w ill be taxable. W hen th is
occurs, are th ey subject to incom e tax
for th e y ear in w hich th ey are received
by th e taxpayer?
N orthw estern B anker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
March 19M
A railroad issued a stra ig h t bill of
lading for a sh ip m en t of p o u ltry to
m ove from K entucky to New York.
The p o u ltry w as never loaded. On the
stre n g th of th e bill of lading a K en
tu ck y ban k discounted a d raft draw n
by th e shipper w hich subsequently
becam e defunct. Can th e b ank recover
from th e railro ad a loss th a t resulted?
foreclose a m aterialm an ’s lien against
a house and lot in N orth D akota in
w hich a b an k w as interested. One of
th e p a rty defendants w as the State of
N orth D akota w hich, it w as alleged,
claim ed some in te re st in th e p ro p
erty. W as th e S tate a p roper p a rty
in th e action?
(T u rn to page 25, please)
15
How W e
HELP OUR FARMERS
W ith Livestock
By W a rre n G a rs t
This is the type of dairy cow th at the Home State
Bank of Jefferson is helping to place on farms in
its community
Cashier
Home St ate Bank, Jefferson, Iow a
V ER since I h eard A. T. A ltick,
p re sid e n t of th e Osage F a rm e rs
N ational, m ake his ta lk about live
stock, I have w ondered w h at we
m ight do to follow along sim ilar p ath s
in hav in g an outside m an help w ith a
fa rm e r’s livestock program . A bout
th a t tim e we hired a 4-H boy to w ork
in th e bank, and as he has come along
E
we have w orked m ore and m ore into
hav ing a “livestock p ro g ram ” of our
own.
We stress 4-H contacts all we can.
S om ething over a year ago we ad v er
tised th a t we w ould loan a p u re bred
sow to boys or girls—and w ould take
as our pay, in due course, tw o pigs
of our selection. The boy w as to keep
*7he
BanJzeA,
i l l l PUBLISHED BY THE H O M E STATE BAN K M
West Side of Square — Jefferson, Iowa — Branch at Paton
Wanted: 100 Boys and
Girls, to raise market litter
pigs.
Actual record books by
135 boys in a nearby town
showed a cost for pigs
raised in 1940, including all
feed, pasture and vaccin
ation, of $4.13 a hundred
pounds. That meant they
made a profit of substan
tial amounts.
With prospects for hogs
looking up, 1941 promises
to be a better year than
1940.
We will help select the
sows if you want—and fur
nish the money to make
the settlement if needed.
l
M, E. B runner . President
W
arren
G arst , Cashier
In
boys
best
keep
deal.
return we ask the
and girls to follow the
hog methods and to
a record of the whole
There is profit plus valu
able experience—and the
Home Bank is right here
to help.
Ask either Gerald Clause
at Jefferson or D. L.
Nuckolls at Paton for de
tails.
Bank Money Orders—a
low cost way to transfer
money with a full record
here and a receipt to you.
They are insured by Feder
al Deposit Insurance Cor
poration to the amount of
$5000.00 for each customer.
E . A . M il l ig a n ,
J. H . W
atts,
Vice-President
Assistant Cashier
Memù&t^e«Ujtal^bef20éit^MAMàa4iceQofvpMaÌìoH\
Above is a facsimile of an advertisement of the Home State Bank of J e f
ferson which appeared in the local newspaper. You will note th a t it ties
in w ith the livestock project of the bank, as does other advertising copy
which is used from time to time.
the sow and all th e o th er pigs as his.
The sh arp drop in boar prices last fall
slowed us dow n some on that, b ut the
cost to us tu rn e d out to be slight and
the good will and advertising of great
value. T his year we are loaning the
m oney to help buy a p ure bred or
good grade sow, depending on the
boy’s age, experience and set up. Our
fieldm an helps to find and select the
sow, visits th e farm s several tim es
du rin g the year, and gives any help
he can.
F arm ers in m any p arts of th e state
have crossed up th e ir cattle so m uch
th a t a cow doesn’t know w h eth er to
give m ilk or get fat w hen she eats an
ear of corn, and as a re su lt she does
not do a v ery good job of either. We
th in k a m an w ho w an ts to m ilk
should have cows w hich w ill produce
a profit—and one w ho w an ts to raise
calves w ill do w ell not to use dairy
type cows for m others.
W hen we suggested th e idea of h av
ing profit-m aking cows for the m an
w ho w anted to m ilk five or ten cows,
we found a n um ber of m en interested.
The n et re su lt w as th a t in 1940 our
fieldm an m ade th ree trip s to W iscon
sin and bought and bro u g h t back to
G reene county a total of some 105
head of d airy cattle—bulls, cows,
heifers, calves. These w ere bought
m ainly on order. On each trip we
took along anyone w ho w anted to go
and those w ho did go, found the trip
of interest. In each case we bought,
at th e b a n k ’s risk, enough ex tra cat
tle to fill th e truck. Now we have
m en com ing into the bank asking
about g etting dairy cattle and have
on hand orders for 20 m ore head.
The advantage of acting th ro u g h
one organization, such as th e bank, is
th a t we can centralize th e deal and
save expense—as w ell as give some of
the farm ers ex p ert help in selection.
An un u su al angle to our cattle deal
(T u rn to page 26, please)
N orthw estern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Ma"ch 19)1
16
Bank Management —
Customer Relations —
Loans — New Business
digest
BANKS NEED SALESMEN
W e believe b an k officers are m uch
m ore public relatio n s m inded th a n
th ey w ere a few y ears ago, b u t th e re
probably is still room for im prove
m ent. Jerom e N. S anderson tells in
B an kers M agazine w hy he th in k s
bank s need salesm en, and th e follow
ing excerp ts are tak en from his article:
IRST, let m e say, or ra th e r let me
state, th a t b an k s need salesm en.
B anks do not need high-pressure sales
m en, th e y do not need prom otional
salesm en, th ey do n o t need salesm en
w ho beg for business, th ey do not need
effervescent salesm en, b u t th e y do
very definitely need m en w ho are m ore
th a n m ere order-takers. B anks need
sales-m inded p ersonalities am ong th e ir
vice p resid en ts and beh in d th e ir loan
desks; and, in m y opinion, b an k s need
sales-m inded m en in these places v ery
badly indeed.
“Most b an k ers I know have come up
th ro u g h accounting ra n k s and are
m ore concerned w ith th e p u re figures
involved in a loan tra n sa c tio n th a n in
the m ore subtle em otional responses
w hich th e client develops from con
v ersatio n involving his in tim ate finan
cial affairs. M any o th er b a n k e rs w ere
badly scared d u rin g th e late, g re a t de
pression and have n o t since been able
to look a loan in th e face w ith a n y
th in g b u t fear and suspicion.
“N eith er of th ese types is salesm inded. T he re su lt is th a t th e client
leaves th em w ith a feeling th a t he has
been talk in g to exalted adding m a
chines or to form s of h u m a n ity ak in to
the d istric t atto rn ey , and m ore likely
th an not th e client hies him self to
m ore sym p ath etic b an k in g q u a rte rs as
soon as conveniently possible.
“A case in po in t h appened in a n e a r
by tow n. A young m an had m ade a
m odest success of a neighborhood
grocery store. He h ad a b ro th e r a
couple of y ears y o u n g er w ith him in
the store. B oth boys w ere am bitious,
cheerful, optim istic, careful, and th e
store w as m aking m oney.
“Well, th e y ounger b ro th e r w anted
F
N orthw estern B anker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
March 19kl
to be m ore th a n a clerk, so the two
conceived th e idea of opening an o th er
store for th e y ounger one to run.
B ut th ey d id n ’t know how to go about
financing it.
“T hen th ey read a b an k ad in th e
new sp aper about how th is p articu lar
b an k stood ready and w illing to loan
m oney for th e advancem ent of busi
ness enterprises. T hey have th e ad in
th e ir scrap book yet. I read it not so
long ago and it w as really poetic.
“So th e older b ro th e r w en t to this
b an k and explained his plan. The
b an k er listened perfunctorily, looked
a t him and said: ‘Young m an, th ere
are 87 grocery stores in th is tow n al
read y and not half of th em m aking
any m oney. I am not going to encour
age you to open an o th er by loaning
you m oney.’
“So th e young m an w en t to an o th er
bank, borrow ed th e m oney he needed
ag ain st th e th o ro u g h ly liquid assets of
his business, and he and his b ro th er
now ow n eleven of th e 87 grocery
stores. All eleven of them are m aking
good m oney, and th e second b an k er
has a good account because th e first
b an k er w asn ’t a salesm an.
“A nd y et so m any b an k ers yell th a t
th e re a re n ’t any good loans anym ore
an d th a t th e y ’re starv in g to death on
G overnm ent bond yields.
“One reason th e independent sm all
loan in stitu tio n s have flourished, even
th o u g h th e banks are m aking a play
for sm all loan business, is because th e
independents, generally speaking, are
using m ore effective selling m ethods.
T rue, th e h ig h er in te re st rates charged
by th e independents give them m ore
m arg in for losses and th ey can be
m ore liberal and consequently m ore
popular. B ut th e essence of good
salesm anship in lending is in m ain tain
ing a friendly and u n critical attitu d e .”
A M O D ER N BUILDING
INCREASES BUSINESS
j T ’S h u m an n a tu re for people to like
| to do business w ith w h at th ey con
sider up and com ing institu tio n s, and
th a t is ju s t as tru e of custom ers of
banks. T hey tak e pride in a new
building or com pletely m odernized in
te rio r m uch th e sam e as do th e officers.
T his is b ro u g h t out in B ankers
M o n th ly by A very Beyer, w ho says in
p art:
“W hen you see pictu res of y o u r
self tak en 30 y ears ago, you realize
th a t conditions have trem endously
changed.
B uildings change alm ost
as fast as people; th a t is, th ey do
w hen th ey are m odernized.
“One m odern building in a tow n
causes people to expect sim ilar m od
ern izatio n in others. B uildings m u st
be kep t up-to-date as w ell as clothes.
“Our deposits have doubled since we
occupied our new building. Our loans
are m ore th a n tw ice as large as th ey
w ere before. As a m a tte r of fact, we
have also doubled our capital, and in
creased our su rp lu s n early 50 p er cent.
“T here w ere several reasons, o th er
th a n the anticipation of increased
business, w hich decided us to build a
m odern building. One w as th a t we
felt th a t we could do a b e tte r job o u r
selves in a building in w hich we felt
com fortable, and w here our w ork
could be handled conveniently. W e
knew th a t we w ould be proud of a
new stru ctu re, and th a t our v ery pride
w ould cause us to do our w ork b etter.
“A nother reason w as th a t we
w an ted to encourage local b u siness
m en to m odernize th e ir places of
business, and th o u g h t th a t th e en
couragem ent could not be effective u n
less we followed our ow n advice and
kep t up w ith th e tim es.
“N aturally, we believed in th e fu
tu re of our com m unity. W e felt th a t
we had good businessm en here w ho
w ould continue to develop th e ir ac
tivities. W e felt th a t th e su rro u n d in g
co u n try is capable of increased p ro
duction, and th is w e w ere sure, w a r
ra n te d a fo rw ard looking attitude.
“Now th a t th e re are few er banks
th a n th ere w ere y ears ago, th e re are
g re a te r o pportunities for w idening
th e trad e area, and for encouraging
b anking business to come from o th er
tow ns w here th e re are now no banks.
“A fter analyzing th e situ atio n in
th is way, w e felt th a t we w ere ju s ti
fied in using some of our su rp lu s for
a new b ank building.
“Since we b u ilt our new building,
our com m unity has developed nicely
and m any of our m erch an ts have fol
lowed our exam ple by m odernizing
th e ir buildings.
“Local business has increased, and
we are n a tu ra lly pleased th a t we w ere
rig h t in our ju d g m en t th a t m odernized
places of business help to increase the
17
Director Cooperation —
Special Services —
noiA hwe/ tern
Personnel Problems
n u m b er of custom ers, and th e size of
th e ir tra n sa c tio n s.”
"PEPPY-GRAMS"
T he em ployes of th e F t. W o rth
N ational B ank, F t. W orth, Texas, p u b
lish a house org an in w hich th ey
aid and in sp ire each other. In a re
cent issue, th e follow ing “PeppyG ram s” w ere published. T hey w ill
un d o u b ted ly be of in sp iratio n al value
to em ployes in o th er in stitu tio n s:
Keep y o u r eyes, y o u r ears, and y o u r
m ind open all th e tim e and y o u r
m outh closed a t th e rig h t tim e.
Keep y o u r tem per. E v en steel is
useless w h en it loses its tem per.
D on’t argue. H igh w ords alw ays
“come h ig h .” T hey lose frien d s for
you and for th e bank.
Be loyal. D uty should be m ore th a n
skin-deep. Be p rep ared w h en occa
sion dem ands, to “p u t b an k in g be
fore p leasu re.”
T h in k of others. T hey w ill in tu rn
th in k m ore of you, and th e ir reg ard
and good w ill w ill m ake you w o rth
m ore to th e bank.
Confidence in y o u rself w ill in sp ire
confidence in others.
If y o u r pro g ress seem s a little slow,
a change to “m id n ig h t oil” m ay give
you a little b e tte r speed and m ileage.
Take y o u r tim e. H u rry is th e foe
of acuracy. R em em ber th a t th e b an k
m u st be rig h t.
D on’t let y o u r head be tu rn e d by
praises. If you do you w ill be look
ing over y o u r shoulder a t p a st ac
com plishm ents and w ill be likely to
stum ble over th e n e x t step ahead.
EXTRA EA RN IN G S FOR
C O U N T R Y BANKS
H E R E are th re e w ays for th e coun
try b an k to m ake m ore m oney
w hich th e y are n o t u sing to th e fullest
extent, says R. O. K aufm an, p resid en t
of th e F irs t N ational B ank of Mt.
V ernon, Illinois, w hen he w rites in
th e M id-C ontinent B a n ker as follows:
“B anking is not a p h ilan th ro p ic in
stitu tio n and it is p ro p er th a t any
schedule of charges should provide a
m argin of profit ju s t as th e m e rc h a n t’s
m ark u p on his goods should. M erely
to set an a rb itra ry charge of th re e
cents p er check, plus a so-called m ain
ten an ce charge of 25 or 50 cents
m o n th ly p e r account w ith o u t d e te r
T
m ining th e w o rth of th a t account on
th e th eo ry th a t th e good w ill average
out th e bad is n ot sound business.
T he b an k th a t operates on th is p rin
ciple is m aking th e profitable accounts
c a rry th e load for those w hich break
even or show an actual loss w hen
th e re is no justification for th e ir do
ing so. W hile th ere m ay be a few
exceptions, generally speaking, the
account th a t fails to n et a profit for
th e b ank is not w o rth having.
“Because of low bond in te re st rates
and th e lack of dem and for business
credit, m any banks have been com
pelled to seek new outlets for funds.
Some have been able to build up a sa t
isfactory volum e of w h at we term p e r
sonal loans. In larg er cities th is type
of loan is available in sufficient volum e
to m ake th e effort profitable. I t is evi
d e n t th a t th e average size of such
loans in larg er com m unities is con
siderably h ig h er th a n th e average for
th e sm all com m unities. T his p resen ts
a problem difficult of solution for th e
sm aller ban k s and a problem in w hich
th e sm all bo rro w er is vitally in te r
ested, and, we m ight add, th e state.
“In m any sm all com m unities today
th e person w ho w ould be an in sta ll
m en t loan b o rrow er a t th e bank, had
it such a departm ent, is obliged to pay
ex o rb itan t rates to a personal loan
com pany in a near-by city or to a local
p erson operating independently.
“A nother outlet for funds can be
found th ro u g h contact w ith local
dealers handling various types of con
su m er goods, such as autom obiles, re
frig erators, vacuum cleaners and the
like. T here is m uch com petition in
th is field, yet, personal contacts w ith
dealers often enable th e b an k er and
th e dealer to w ork out a plan of h a n
dling p ap er on a satisfactory basis.”
TELLERS TH A T REALLY
SELL
| YALL BARNHART, in an article in
L a recen t issue of B urroughs Clear
ing H ouse, describes how th e tellers
of th e F irs t N ational B ank in Okla
hom a City, of w hich he is com ptroller,
have becom e th e outposts, th e ad
vance g u ard for b ringing in m ore
business into th e in stitu tio n . He says
in part:
“Our plan had its inception w ith a
cen tral file discovery th a t eight out of
digest
ten of our custom ers had no contact
w ith anyone in th e b ank except th e ir
tellers. In banks th e size of ours and
larger, and m any m uch sm aller, few
custom ers have business w ith th e
president. R elatively few custom ers
deal w ith loan officers. W hile m ore
have contact w ith ju n io r officers, still
80 p er cent tra n sa c t all of th e ir b a n k
ing business at the windows. E ven
those w ho have occasional tra n sa c
tions w ith officers depend upon tellers
for m ost of th e ir service. F u rth e r
m ore, th e su b stan tial business m an
w ho has en tree to th e p resid en t’s of
fice and to th e desks of loan officers,
alw ays has a secretary or cashier w ho
handles his ro u tin e business at a
te lle r’s window.
“So we faced th e fact th at, to m ost
of our custom ers, th e ir b an k er w as
th e ir teller. T h at is how ‘tellervision’ started.
“To do th e job we had in m ind it
seem ed th a t th e th in g hung on gettin g
our tellers in terested in th e ir cus
tom ers as h u m an beings and, in
versely, on convincing our custom ers
th a t th e ir tellers w ere som ething m ore
th an autom atons.
“F irs t we ra n a series of new spaper
ad v ertisem ents entitled, ‘Meet Your
B anker.’ In these w ere featu red pic
tu res of our tellers. E ach p icture w as
accom panied w ith a brief biographi
cal sketch. W e noted th e te lle r’s
birthplace, w here he w en t to school,
w hen he came w ith th e bank, th e dif
fe re n t jobs he had held, his residence,
and bits about his fam ily, church,
clubs and hobbies. W e stressed the
friendliness, th e invariable courtesy
of th e m en and w om en a t th e w in
dows and w e saw th a t these em
ployes had advance copies of these
advertisem ents.
“N ext we established a daily re p o rt
system for tellers and th is is th e crux
of th e w hole thing. E ach teller w as
provided w ith blank ru led form s. On
this he w as asked to re p o rt th in g s of
in te re st th a t happened at his window.
E ach teller tu rn s in one of these
(T u rn to page 62, please)
N orthw estern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
March Ì9M
18
W h a t They Said at the
M id - W in te r
Trust Conference
Public Opinion? More Attention to Life Beneficiary, Laws Regarding
Corporate Trustees, and the Annuity Plan Are Discussed
H E follow ing p a rag rap h s are h ig h
lights from talk s m ade last m o n th
a t th e a n n u al m id-w inter tru s t
conference of th e A m erican B ankers
Association. In th em w ill be found
m uch of in te re st for every b an k er who
handles any business of th is n a tu re
in his in stitu tio n .
T
T hey m u st be ta u g h t how to recognize
the need for tru s t service am ong th e ir
custom ers and how to create in terest
in it.”
kJ
I ED G E CARL E. W AHLSTROM ,
probate court, W orcester, Mass.:
“A person ord in arily creates a tru s t
for th e benefit and protection of some
E. D R EW , director of public relaperson or persons n ear and dear to
• tions, C alifornia B an kers A ssocia
him. T his person m ay be his wife, or
tion:
children, or all of them . H is first and
“The fu tu re of th e tr u s t com pany
p a rtic u lar in te re st is in these persons.
w ill be d eterm in ed by one all com
He has a d u ty to pro tect them . His
pelling force—public opinion. H ere
principal obligation is to them . Surely
you play an im p o rta n t p art, for to a
th e ir w elfare conies before collateral
g rea t ex ten t th a t opinion w ill be
relatives or th e hospital, college,
shaped by y o u r influence; by w h at
church, or m useum w hich m ay be th e
you say, w h a t you do and how you
rem ainderm en. None w ill deny, it
do it. It is y o u r p rim a ry job to
w ould seem th a t he does n ot w an t his
arouse, educate, and direct public
dear ones to suffer or be deprived of
opinion to w ard an in tellig en t app recia
som e of his w ealth if th ey need it, for
tion of th e rich values of tru s t com
th e benefit of th e rem ainderm en.
p an y service.
“E v en if th e life beneficiary w ere
“B ank m anag em en t holds th e key
to th e successful and profitable de th e w ife alone and th e rem ain d erm en
w ere th e children, it w ould appear
velopm ent of any tr u s t departm en t.
obvious th a t th e te sta to r or settlor
It m u st vigorously in sist th a t its b an k
w ould w an t h e r provided for properly,
and tr u s t officers display m ore active
and practical cooperation. W ishful even at th e hazard of decreasing w hat
th in k in g and m ere lip service to th a t th e children, th e rem ainderm en, w ould
u ltim ately receive. If th is is so con
ideal are not enough.
cern ing children, how m uch tru e r this
“B ank m an agem ent m u st speak
should be w hen th e rem ain d erm en are
clearly, firm ly, and frequently. E v ery
officer of th e b an k and th e m em bers collateral relatives, non-relatives, or
institutions.
of th e d ep artm en ts m u st be m ade fully
“More atten tio n should be given to
aw are th a t th e b an k is v itally in te r
ested in obtaining new business. U n th e life beneficiary and his or h er
til b an k m an ag em en t tak es th a t posi needs, com fort, m aintenance, and su p
tion and m akes th a t statem en t, it port, and I am convinced th a t th e
should stop ‘m o aning’ about th e e a rn m any changes th a t are creeping into
ings of its tr u s t dep artm en t. In those our law of tru s ts indicate clearly th a t
we m u st n o t be satisfied w ith living
in stitu tio n s w h ere m an agem ent has
adopted th is policy, th e tr u s t d e p a rt up to th e le tte r of th e in stru m en t,
b u t th a t we m u st go back of th a t lan
m en t has prospered.
“R em em ber th a t a t least 80 per cent guage and endeavor to learn th e in
te n t of th e te sta to r or settlo r.”
of y o u r new business comes from
custom ers of y o u r bank, and th e of
AYO A. SHATTUCI v, H auserficers and staff of th e b an k in g d e p a rt
liian, D avison & Shattuck, B o s
m en ts have closer association w ith
these people and m ore accurate k now l ton:
“T here are v ery few decisions of
edge of th e ir affairs th a n an y one else
courts of th e last reso rt in w hich a
in y o u r in stitu tio n .
tru ste e has been su rcharged solely
“I t is y o u r job, th erefore, to educate
these b an k m en reg ard in g th e services because he passively allow ed his co
tru ste e to have sole custody of the
and advantages of y o u r departm ent.
J
M
N orthw estern B anker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
March 1941
tru s t portfolio, b u t th e re are d an g er
ous cases in m any states. T he trouble
is, as m ost tru s t m en know, th a t the
decisions of courts of record are not as
im p o rtan t in tru s t ad m in istratio n as
those of first resort.
“C orporate fiduciaries have com
m only tak en and ord in arily expect to
tak e sole custody of th e tru s t property,
and th ey also com m only issue checks
signed only by them selves in paym ent
of tru s t bills and in d istrib u tin g tru s t
funds. T his hab it m ay be a custom ,
to be sure, and th e custom m ay even
tually prove a justification a t law, b u t
I know of no case w hich clearly ju s ti
fies the practice. C ertainly th e tru s t
in stru m e n t should provide for this,
if th e practice is to be engaged in.
“As betw een individual tru stees,
how ever, th is m an n er of doing th in g s
should not be tolerated, unless th e in
stru m e n t provides for it to be done.
F u rth e rm o re th e w isdom of an indis
crim inate use of language p erm ittin g
a division of responsibility is doubtful.
W herever th e corporate fiduciary is
concerned, a clause should be in serted
holding th e individual tru ste e h a rm
less for allow ing th e corporate tru stee
to have sole custody of th e tru s t p o rt
folio. T his language m ay be expanded
to cover w h at we all know is going on
in practice ju st as far as th e client
w ishes to go.”
t . S t e p h e n s o n , di
rector of trust research for
Graduate School of Banking:
G
il b e r t
“The settlem en t of estates and ad
m in istratio n of tru steesh ip s and g u ard
ianships and perform ance of agencies
call for specialists in m any and varied
fields, such as bookkeeping, account
ing, investm ent, taxation, and p ro p erty
m anagem ent. No individual can be a
specialist at once in all these fields.
Hence, th e re exists th e need for a
tru s t in stitu tio n th a t can b ring togeth
er th e talen ts and services of a group
of specialists.
“These tru s t functions likew ise call
for th e exercise of th e com posite ju d g
m ent of a group of persons—officers,
(T u rn to page 26, please)
N orthw estern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
March 19M
20
NEWS A N D V IE W S
(C ontinued from page 12)
larg er th a n th e 1939 incom e of $8,668,000,000.
F rom m ark etin g s and com m odity
loans, incom e w as $8,354,000,000 and
from g o v ern m ent benefit paym ents,
$766,000,000.
Iow a’s farm incom e in 1940 topped
$700,000,000, larg est since 1929. T his
figure led th e nation.
The exact figure w as $728,506,000, in
cluding $679,271,000 to tal cash incom e
from farm m ark etin g s and $49,235,000
in federal paym ents. T his w as $81,591,000 g re a te r th a n the total in 1939
and w as only $5,767,000 u n d er the 1929
peak.
C alifornia w as second w ith $650,410,000, Texas w as th ird w ith $579,192,000,
and Illinois w as fo u rth w ith $571,624,000.
Incom e from crops in Iowa in 1940
am ounted to $165,311,000 and from live
stock and livestock products, $513,960,000.
The g reatest in creases in incom e
w ere in M innesota, Iow a, North and
South Dakota, and M ontana.,
The greatest d eclin es w ere in L ou isi
ana, M ississippi, F lorida and North
Carolina.
*
A rgum ents for and against exchange
charges flew th ick an d fast recently
before a legislative h earin g of th e jo in t
Senate and H ouse B ank C om m ittees
to discuss a bill to o utlaw exchange
fees.
One h u n d re d th irte e n b an k s (113) in
Iow a now m ake an exchange charge,
and 556 b anks cash checks a t par, w ith
out m aking an y charge.
L. A. W itter, p resid en t of th e F a rm
ers T ru st & Savings B ank of Spencer,
believes th a t all b an k s should cash
checks a t par, and, in discussing th e
question at th is m eeting said:
“W ho’s to blam e for the com petition
you say forces you to do non-par bank
ing?
“The hankers and nobody else. You
non-par bankers are takin g advantage
of you rselves.
“W e h ave accounts in our bank that
have no b u sin ess there, that h ave been
placed w ith us sim p ly because the de
positors are tired of th e exchan ge
charge m ade by banks in their tow ns.
One of the m ost profitable accounts in
our bank com es from a non-par tow n .’*
On th e o th er hand, Sam uel R. Torgeson, cashier of th e F arm e rs &
M erchants S tate B ank of L ake Mills,
and form er p resid en t of th e Iow a
B an k ers A ssociation, believes th a t th e
“E xchan ge charge is on ly the bank
er’s w age for tran sfer of credit, i t ’s
N orthw estern B anker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
March 19M
as legitim ate as any charge a bank
m akes.
“W e can’t put service charges g en er
ally on our custom ers, or th e y ’ll go
across the line to M innesota banks
w h ich don’t have service charges. Our
bank obtains $3,000 a year from ex
change charges, and pays out $4,000
in terest on tim e d ep osits.”
Not long ago the G overnor of the
B ank of E ngland, M ontagu N orm an,
stopped to inspect a bomb c ra te r in
London. Suspicious of the G overnor’s
beard, a policem an asked him his busi
ness. N orm an replied, “ I w ork in a
bank.” Policem an: “We®, how about
b uzzin g oft and doing a bit of bank
ing?”
If the g overnm ent is to finance its
increased national defense operations,
it is quite likely th a t th e rate of in te r
est on bonds and securities w hich it
sells w ill have to be higher, and th a t
m ost of these w ill be absorbed by the
public.
If th is is th e case it w ill reflect fa
vorably on th e bonds already held by
com m ercial banks.
One financial au th o rity p u ts it this
way:
“The in crease in the public debt,
d uring the last 7 years, in dicates ab
sorption of 4(> per cen t by the banks,
18 per cent by the in surance com
panies, 11 p e r c e n t by in dividu als and
non-finaneial corporations, and the bal
ance by g o vern m en t a g en cies and
tru st funds. H a v in g sold b illion s of
governm ent secu rities to com m ercial
banks at gradually d eclin in g yield s
and m eager rates, a sim ilar am ount
can u n lik ely be sold to private in v es
tors excep t at h igher rates, w hich , in
turn, w ould react upon the valu e of
bonds n ow held by com m ercial banks.”
R obert W eidenbach, form erly vice
p resid en t and cashier of the N ational
B ank of N orfolk, N ebraska, and w ho
has recently become cashier and m an
ager of th e F irs t N ational B ank of
Eldon, Iowa, believes th a t th e w ay to
w in friends in th e b anking business is
to adopt th e follow ing eight principles
w hich he has found valuable in his
ow n b anking experience.
H ere th ey a r e : .
1. Show a friend ly in terest. Be
p leasan t at all tim es.
2. Speak clearly, d istin ctly and in
w ell m odulated tones. Be careful
about you r telep h on e voice.
3. Give the b est there is in you.
4. R em em ber th at you sell SE R V
ICE.
5. Be at the w indow before your cu s
tom er. M eet him w ith a sm ile
and a p leasan t word.
6. N ever allow you r cu stom ers to
w ait a second. Drop all other
w ork and m ake them feel that
th ey com e first and th at you are
there to serve them .
7. In op en ing a n ew account, if the
officers are not too busy, introduce
your n ew patron and m ake him
feel at ease w ith a cordial w el
com e.
8. L E A R N TO SM ILE.
P. S. IN CASE YOU GET NO F A
VORABLE R EACTION— GIVE PA
T IE N T A D O UBLE DOSE OF P IN K
PIL L NO. 8. NO D ANG ER IN OVER
DOSE.
Edw ard C. N ew fa n g has been p u t in
charge of the Chicago office of the
Chemical B ank & T ru st Com pany of
New York.
H arm on L. R em niel, w ho has been
in the Chicago office, w ill re tu rn to
New York and w ill continue to trav el
for the b ank from there.
Mr. N ew fang is a native New Y orker
and has been associated w ith th e
Chemical B ank & T ru st Com pany
since his grad u atio n from Cornell U ni
v ersity in 1926. He w as connected
w ith the C redit D epartm ent of the
bank for several y ears and d uring th e
p ast th ree y ears has been assisting
in the ad m in istratio n of the b a n k ’s
M id-W estern business. Mr. N ew fang
will rep resen t the b ank in Illinois,
Iowa, N ebraska and W isconsin.
M iss D orene Capps, d au g h ter of
J. R. Capps, cashier of the C entral N a
tional B ank & T ru st Com pany of Des
Moines, w as m arried on M arch 1 to
A rlo H. K n ow les of Pella, Iowa.
The w edding took place at the P lym
outh C ongregational Church in Des
Moines, and w as followed by a recep
tion at the Des Moines Club.
The young couple w ill reside in
Pella, w here Mr. K now les is em ployed
by the Pella R ollscreen Company.
H oyt R. Y oung, presid en t of the
Iow a B ankers A ssociation, prom oted
th e idea of having a separate m eeting
for th e ju n io r officers of the banks in
Des Moines in June.
Mr. Young bro u g h t out th is idea at
the m eeting of Group One at Sioux
City, and it m et w ith a h e a rty re
sponse.
E. E. M anuel, ch airm an of Group
One and p resid en t of th e George State
(T u rn to page 63, please)
T h ey ’ll
Speaking of Profits, M r. Banker,
w e’d like to talk about the assets th a t
back “ H e a rt” farm ing. W e’d like to
rem ind you th a t A m erica’s business
farm er and his wife are your best
customers . . . they represent ONE-
in 1941!
and
P e r c e n t of N a tio n ’ s T o taJ
Farm incomes $1,5 00 and over (average $ 3,8 48 )
Farm building valuation
Farm implement valuation
Farm-owned automobiles, trucks,tractors
Corn production
Wheat production
Oat production
Value of cattle and calves
Value of swine
54
53
55
52
76
65
81
53
74
W h at does this m ean to you, M r.
Banker? Just this . . .“ H e a rt” farm
nance a building program , a tractor,
autom obile, household equipm ent or
furnishings . . . we suggest you extend
the full services of your bank. These
are the farm ers who will earn more,
spend more, and m ean m ore in 1941 !
T H IR D of the n atio n ’s farm po p u la
ers are your best risks. W hen they
M eredith Publishing Com pany, Des
tion . . . and they enjoy:
come to your bank for loans to fi-
Moines, Iowa.
youn
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Federal Reserve Bank of St. Louis
Isa
m l94l!
22
Central Life
ASSURANCE SOCIETY
(MUTUAL)
E.
H. ME LOCK, President
Founded 1896
Dcs Moines, Iowa
45th
ANNUAL FINANCIAL STATEMENT
December 31, 1940
★
ASSETS
LIABILITIES
Farm L o a n s _______________$ 3,766,354.63
City Loans (of w hich $9,289,869.62 are insured by the
Federal H ousing A dm inis
tration) _________________ 13,056,612.58
Real Estate (Includes $1,397,994.74 sold under con
tract) ____________________
4,379,115.98
P olicy L o a n s _______________ 6,766,898.84
United States Government
obligations, State, County,
M unicipal and other Gov
ernm ent Bonds and Im
provem ent Certificates__ 14,637,846.91
P ublic U tility B onds_______ 5,622,674.75
Cash in Banks and O ffices-_ 2,300,361.05
Interest Accrued on Secu
rities ____________________
333,631.27
D e f e r r e d Prem ium s and
other a s s e ts ______________
935,781.33
Reserves on outstanding In
surance P o lic ie s _________ $40,400,380.49
Total Adm itted A ssets__ $51,799,277.34
Policy Claims (Matured E n
dowments and other claims
in Process of Paym ent )___
248,212.42
Present Value of Death, D is
ability and other Claims
Payable in In stallm en ts--
3,078,517.80
Reserve for Paym ent of Taxes
166,789.89
Reserve for M iscellaneous
Obligations (Includes divi
dends left on deposit with
the C o m p a n y )----------------
2,408,117.15
Funds assigned for Future
D ividend D istribution____
964,798.98
Total L ia b ilit ie s ________ 47,266,816.73
Unassigned S u r p lu s _______
4,532,460.61
Total ___________________ $51,799,277.34
SIGNIFICANT GAINS IN 1940
Total Insurance in Force......................................... $170,496,709
INCREASE during 1940 ......................................
2,585,363
Total Surplus..................................................
$4,532,460.61
GAIN during 1940...............................................
653,909.23
'Northwestern Ranker
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Federal Reserve Bank of St. Louis
March 19 M
★
G
o o d
Is
H E claim a d ju ste r sells fair and
reasonable settlem en ts and, in
tu rn , buys a release for th e as
sured. Like all tran sactio n s, it should
be acceptable to both p arties. It is
e n tire ly possible to pay a m an m ore
th a n he is en titled and, th ro u g h poor
salesm anship, leave him disgruntled.
On th e o th er hand, a good salesm an
can convince a fair-m inded assu red or
claim an t th a t he is not en titled to any
pay m en t w hen such is th e fact.
Public relatio n s is a m uch used and
freq u en tly abused phrase. Our claim
m en alone probably in terv iew and do
business w ith over one m illion people
in th e course of a single year. To
m any assu red s and to m ost claim ants
the claim m an is th e only contact w ith
th e com pany. It is a fertile field for
b e tte r public relations. Incidentally,
a satisfied claim an t should be a very
receptive prospect for the agent.
An exam ple of salesm anship is a re
cent case in our New Y ork office. A
claim ant w as so satisfied w ith the
tre a tm e n t accorded him by one of our
New York claim re p re se n ta tiv es th a t
he re tu rn e d to his hom e tow n and
placed his ow n in su ran ce in th e H a rt
ford in spite of th e fact th a t we paid
him no th in g w hatever. In th is case
not a cent w as owed. T he claim m an
handled th e case w ith intelligence and
‘sold th e cla im a n t’ to th e e x te n t th a t
he becam e convinced th a t th e Com
pany could do a good job for him if he
ever needed us.
T
I m ention th e referen ce to m y own
com pany w ith apologies and h asten to
say th a t such situ atio n s are duplicated
in o th er w ell-m anaged claim d e p a rt
m ents.
W hen one stops to consider th e in
tangibles th a t we are dealing w ith, it
is a trib u te to b oth th e public and th e
in su ran ce in d u stry th a t such a tr e
m endous percen tag e of o u r cases is
settled am icably. A n u n in su re d p u b
lic u n acq u ain ted w ith th e details and
values of such claim s w ould produce
far m ore litig atio n th a n exists u n d er
th e in su ran ce system . To p ro m p tly
pay legitim ate claim s and to re sist im
pro p er or exaggerated claim s to the
u tm o st are th e first functions of a
casu alty claim departm en t. If it fails
in e ith e r of these functions, it defi-
Cl
a im
S e r v ic e
GoodSelling
By W ilson C . Jainsen
Vice President
H a r t f o r d Accident and Indemnity
Company
H a rt f o r d
nitely lets the producer dow n . . . and
I rep eat th a t no agent can u n d erw rite
poor claim service.
L et us for a m om ent tu rn to the
agent. He has labored in dustriously
and intelligently and has, th ro u g h his
W IL S O N C. JA IN S E N
service, secured a desirable risk. The
a g e n t’s responsibility begins, not ends,
w hen he places th e business on his
books. The assured has confidence in
th e agent, as is best evidenced by giv
ing the agent his business. The agent
has learned a g reat deal about the as
sured and has earned his good will.
The agent is the best liaison betw een
the com pany and th e assured. T hat
en tree and inform ation should be
available to th e claim, engineering
and o ther servicing departm ents. If
th ro u g h th e agent at the inception of
a risk th e engineering d ep artm en t
can secure th e en th u siastic coopera
tion of th e assured, m uch can be ac
com plished in reducing or elim inating
the claim s we are now discussing. It
is expected, how ever, in the casualty
business th a t claim s w ill arise; and if
th ro u g h the agent the claim m an has
had th e op p o rtu n ity to do good m is
sionary w ork in educating the assured
as to th e necessity of rep o rtin g every
accident, securing w itnesses and re
p o rting all available inform ation
prom ptly and fully, th e resu lts ac
com plished w ill be th a t m uch better.
E v ery claim d ep artm en t is not only
aw are b u t fully appreciative of the im
p o rta n t p a rt th a t agents can and do
play in claim w ork. Som etim es as
sureds re p o rt th e ir accidents to the
agent. The agent is becom ing increas
ingly conscious of the value of p rom pt
ly rep o rtin g to the claim departm ent,
and, in th e event of a serious accident,
rep o rtin g by phone or telegraph. The
educational w ork th a t com panies and
agents have done in th e last few years
has show n a m arked im provem ent at
th is p articu lar point.
The a lert agent today is fully ac
quainted w ith the coverages he has af
forded and, in those isolated cases
w here p erhaps no coverage exists or it
is subject to doubt, the agent w ith a
few apt w ords has m aterially lessened
th e bu rd en of th e claim m an and fos
tered m uch good will. N aturally, in a
business as com plicated as the casual
ty business slip-ups do occur. U nder
the ever-increasing broad form s of cov
erage and the increasing know ledge of
the agents, they are becom ing few er
and fewer; in fact,they are today such
ra ritie s th a t perhaps the agent is not
as conversant w ith them as he w ould
be if th ey w ere freq u en t occurrences.
I w an t to point out an o th er com par
atively sm all class of business th a t is
provocative of considerable m isu n d er
standing. I speak of Residence E m
ployers Liability. T h at is a contract
to p rotect the assu red ’s pocketbook
and to pay th e loss if he is liable be
cause of his negligence. It is a v alu
able coverage and is incorporated in
th e Residence Public L iability Policy.
H ow ever, in so m any households
th a t em ploy dom estics th ere arises
a m oral or sen tim en tal obligation
th a t goes beyond th e legal liability
covered in th e stra ig h t Residence
E m ployers L iability. An accident
N orthw estern Banker
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Federal Reserve Bank of St. Louis
March 1941
24
has occurred to a dom estic on
th e a ssu re d ’s prem ises. T he house
w ife usu ally calls h e r ow n doctor or
takes th e in ju re d to th e hospital, and
th e h ospital or doctor looks to th e
assu red for p ay m en t of th e obligations
incurred. The assured, h aving become
m orally or co n tractu ally liable for
these ex penditures, looks to his in su r
ance com pany for reim b u rsem en t—
and th e re is no liability on th e in su re r
unless th e accident w as caused
th ro u g h th e negligence of th e assured.
Now th is policy can be endorsed to
cover m edical and h ospital bills, with-
THEY'RE
H
"
A FIN E TIM E"
—and they've earned it!
TV TE’RE pleased to announce
that some N WN L agents
and their families are enjoying
brief sojourns in the W est or
South this winter.
We don’t begrudge them this
luxury. T hey are, alm ost without
exception, veteran agents whose
consistent production of good
persistin g business over the years
is now paying them real money
in renewals under the Arnold
System . T hat these men can now
begin to realize life-long dreams
of a winter vacation in a warm
climate is proof that the System
is doing just w hat it was design
ed to do— pay adequate com pen
sation to the “ backbone” agent
who measures his success in terms
of satisfied customers rather than
in sales alone. H e’s earned it —
and he gets it.
We wish all our old-timers who
feel so inclined could vacation in
California or Florida. Some day,
we expect, they can.
in certain lim its, for a v ery nom inal
prem ium , such bills to be paid irre
spective of negligence. T his coverage
is a big im provem ent over th e stra ig h t
policy. If the assured, how ever, is in
a position to pay for v o lu n tary com
pensation, th en th e com pany is liable
for all m edical bills and com pensation
paym ents w ithin th e term s of th e Act.
O ccasionally an assu red becomes in
volved in an accident for w hich th ere
is no coverage. He has o th er cover
ages w ith the agent b u t none th a t
covers th e p articu lar accident. Faced
w ith a sudden and unexpected loss,
th e re is a stro n g tem p tatio n to m ake
loose assertions. A gainst these an
ag en t should pro tect him self. F o r
exam ple, if I w ere an agent delivering
an autom obile fleet policy to an as
sured, I w ould accom pany the delivery
of th e policy w ith a com m unication
in w hich I w ould be careful to point
out th at, if the assured w ished to re
consider his conclusions on non-own
ersh ip or hired car coverage, I w ould
be glad to discuss it w ith him —-or if
it happened to be a liability policy, the
sam e th in g as respects contractual or
p ro d u ct’s liability, or such p e rtin e n t
coverage as had not been ordered.
I feel certain th a t every claim m an
u rges th e sale of high lim its. H igher
lim its are relatively cheap, and
no th in g is m ore distu rb in g to an as
C en tral S u r ety
and In su r a n c e
Corporation !
Licensed In
All States
INSURANCE
COM PANY
O. J. Arnold,
Minneapolis,
President
Minnesota
N orthw estern B anker
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Federal Reserve Bank of St. Louis
March 19^1
K . E. McGinnis, Presid en t
Home Office
Kansas City, Mo.
Qualified with
U. S. Treasury
Department
Condensed Financial Statem ent December 31, 1940
A D M IT T E D ASSETS
Cash .......................................................... .......................................................................................................$ 1 ,1 6 9 ,9 0 9 .2 5
Bonds:
U. S. Government (D ire ct or G uaran teed ).............................................$ 2 ,3 4 9 ,6 4 0 .2 2
State and M unicip al........................................................................................ 3 ,1 5 4 ,1 8 5 .2 6
Railroad .............................................................................................................
4 9 ,7 0 2 .2 6
5 5 5 3 ,5 2 7 .7 4
Total Cash and Bonds.............................................................................................................. $ 6 ,7 2 3 ,4 3 6 .9 9
Central Surety Fire Corporation Stock.....................................................................................................
5 2 9 ,1 0 1 .1 0
Real Estate .....................................................................................................................................................
1 4 3 ,5 7 7 .3 7
Mortgage Loans on Real Estate..................................................................................................................
1 1 0 ,7 9 7 .1 4
Premiums In Course of Collection.............................................................................................................
8 9 7 ,4 4 9 .7 5
Accrued Interest on Investments................................................................................................................
5 1 ,3 0 2 .8 9
Other Admitted Assets..................................................................................................................................
2 1 ,8 8 6 .9 1
T O T A L A D M IT T E D ASSETS
$ 8 ,4 7 7 .5 5 2 .1 5
L IA B IL IT IE S
Reserve for Claim s.....................................................................................................$ 2 ,4 4 8 ,9 8 4 .5 0
Reserve for Unearned Premiums............................................................................. 2 ,1 6 3 ,9 5 3 .3 5
Total Claim and Premium Reserves.....................
Reserve for Commissions, Taxes and Other Liabilities
Voluntary Contingency Reserve.....................................
Total
N orthwestern
N a t i o n a l LIFE
sured th a n to have to dig into his
pocket and pay th a t portion of a claim
w hich is in excess of his policy lim its.
E ven if he does not u ltim ately pay,
he m ay have m any m onths of w o rry
d u rin g w hich a suit against him is
pending in w hich dam ages are asked
th a t are far in excess of his policy
lim its. It is w o rth th e price in m ental
com fort alone.
T hus we have seen th a t the closer
the cooperation th a t exists betw een
the claim d ep artm en t and th e agent,
th e b e tte r casualty in su ran ce w ill
serve its clients. T he claim m an be
lieves in insurance. The claim m an
know s th e real value of th e ag en t’s
service. In a com pany such as ours,
he sees several h u n d red th o u san d
claim s m ade in th e course of a single
year. Some are small: some are catas
trophic. The claim m an realizes w h at
these losses w ould m ean if th ey fell
upon u n in su red victim s. M any tim es
it w ould be a v ital blow to credit or
insolvency or bankruptcy.
The value of th e service th a t th e
agents have perform ed for A m erican
econom y is beginning to receive th e
recognition to w hich it is ju stly en
titled. The applause belongs to th e
agent for a perform ance w ell done,
b u t th e claim m an quietly derives con
siderable satisfaction from having
helped set the stage.
Reserves ..........................................................
Capital ................................................................
Surplus ................................................................
...................................$ 4 6 1 2 ,9 3 7 .8 5
4 9 2 ,6 8 7 .1 9
1 5 0 ,0 0 0 .0 0
..................................
...................................$ 5 ,2 5 5 ,6 2 5 .0 4
$ 1 ,0 0 0 , 0 0 0 . 0 0
2 ,2 2 1 ,9 2 7 .1 1
Surplus to Policyholders............................................................................................................................... $ 3 221 ,9 27.11
TO TAL
L I A B IL I T I E S
........................................................................................................$ 8 ,4 7 7 ,5 5 2 .1 5
Securities carried a t $ 6 3 0 ,7 3 9 .3 0 in th e above statem e n t are deposited for purposes required by law.
Bonds are carried on am ortized basis. M arket value of bonds exceeded th e ir book value a t Decem ber 31,
1 9 4 0 , by $ 2 8 3 ,4 4 7 .9 6 . No bonds were in d efau lt either as to in terest or p rincipal a t D ecem ber 3 1 , 1 9 4 0 .
M arket value of invested assets of C entral Surety F ire C orporation exceeded th e ir book value a t December
3 1 , 1 9 4 0 , by $ 4 4 ,4 3 8 .9 9 .
Net Premiums W ritten in 1 9 4 0 ............................................................................................................... $ 5 ,2 5 5 ,4 4 6 .1 1
Increase In Net Premiums W r itte n ..........................................................................................................
6 9 1 ,8 3 1 .8 5
Increase in Cash and Bonds.......................................................................................................................
5 5 4 ,6 8 7 .7 9
Increase in Total Admitted Assets.............................................................................................................
7 3 5 .9 8 2 .1 4
Increase in Total Reserves..........................................................................................................................
4 7 9 ,8 3 5 .2 4
Increase in Surplus.......................................................................................................................................
2 5 6 ,1 4 6 .9 0
25
Substantial Gains in 1940
The C entral Life A ssurance Society
of Des Moines, Iowa, reg istered su b
sta n tia l financial gains in m an y de
p a rtm e n ts in 1940.
F ro m every
sta n d p o in t it w as one of th e m ost suc
cessful y ears th e com pany has e n
joyed, according to th e an n u al s ta te
m e n t recen tly released by E. H. Mulock, president.
Gains w ere m ade in in su ran ce in
force, assets, reserves, surplus, ra te
of in te re st earn ed and p ay m en ts to
policyholders.
As of D ecem ber 31, 1940, to tal ad-
LEGAL DEPARTMENT
(C ontinued from page 14)
Yes. The State of N orth D akota m ay
not be su ed in its ow n courts w ith ou t
its con sent, hut it m ay lay aside its
sovereig n ty and co n sen t to be sued on
such term s and in such actions as it
m ay prescribe. B y statu te in N orth
D akota the State has authorized
actions again st it “resp ectin g title to
p rop erty” and, as a consequence, its
joinder as party d efendant w as in
order.
A N ebraska b an k er died in th a t state
leaving a w ill th a t provided th a t his
executor should sell certain real estate
“as soon as m ay b e” after his death.
Did such provision req u ire th a t th e
sale be m ade im m ediately afte r th e
b a n k e r’s death?
No. The execu tor w as not required
to sell the real estate im m ediately after
the b ank er’s death. The tim e of sale
is left to h is discretion, w ith in reason
able lim its, if he acts in good faith and
w ith ou t neglect.
A M innesota banker ow ned a hotel
in th a t state. He leased it o u trig h t to
a com pany th a t operated it. A guest
F in a n cia lly Sound
Another successful year has closed, with an increase in
resources and policies in force.
Liberal benefits with lowest possible cost have enabled us
to provide sound protection to select risks for 36 years past.
FINANCIAL STATEM ENT
D ecem b er 3 1 , 1 9 4 0
RESO URCES
E. H. M U LO C K
m itte d assets w ere $51,799,274.34, m ak
ing a new h igh record an d gaining
$2,762,246.02 over th e previous year.
Policy reserv es also reached a new
peak w ith a to tal of $40,400,380.49, in
creasin g $1,665,549.26 over 1939.
A n o th er reco rd w as m ade w ith a
gain of in su ran ce in force am o u n tin g
to $2,585,363.00, m aking a g ra n d to tal
of $170,496,709.00.
A t th e end of 1940 th e su rp lu s
am o u n ted to $4,532,460.51, as com pared
w ith th e previous y e a r of $3,878,551.28,
an increase of $653,909.23. T his re p
resen ts $109.59 of assets for each $100
of liability.
The n e t ra te of in te re st earn ed d u r
ing th e y e a r w as 4.07 p er cent. In
1939 it w as 4.02 p er cent. P ay m en ts
m ade to policyholders d u rin g th e y ear
w ere $3,522,718.00 and th e ratio of
actu al expected m o rta lity w as 41.53
p er cent.
In releasin g th e com pany’s an n u al
sta te m e n t show ing th ese su b stan tial
gains Mr. M ulock an nounced th e com
p an y w ould continue to pay th e sam e
dividends to policyholders in 1941 as it
paid in 1940.
Cash
U. S. G overn m en t Secu rities
State, C ounty and M u n icip al B o n d s - —
P u b lic U tility B on d s
R ailroad B on d s
First M ortgage L oans
R eal E state
O ther S ecu rities (G u a ra n teed )
Interest R eceivab le
A dvance P aym en ts by M em bers
TOTAL
%
33.1
1 7 .3
2 2 .6
6 .2
4 .8
2 .5
5 .8
6 .6
0 .3
0 .8
$ 1 0 2 ,4 6 5 .3 5
5 3 ,4 0 0 .0 0
7 0 ,2 0 5 .0 0
1 9 ,3 0 0 .0 0
1 5 ,0 0 0 .0 0
7 ,7 7 0 .0 0
1 8 ,0 0 0 .0 0
2 0 ,3 2 6 .4 9
1 ,0 5 3 .5 0
2 ,3 2 1 .0 0
1 0 0 .0
$ 3 0 9 ,8 4 1 .3 4
LIABILITIES
D isab ility C laim s R ep o rted , b u t P r o o fs N ot Rec e i v e d ________________________________________ $ 1 7 ,5 2 5 .0 0
D eath C laim s R ep orted and A w aiting P r o o fs ----5 ,0 0 0 .0 0
LTnearned A s s e s s m e n ts __________________________
2 ,3 2 1 .0 0
R eserve fo r T a x es, B ills, E tc.----------------------------2 ,5 8 0 .2 5
RESER V E FO R PR O TEC TIO N OF M E M B E R S- 2 8 2 ,4 1 5 .0 9
TO TAL
______________________________________$ 3 0 9 ,8 4 1 .3 4
POLICIES IN FORCE 2 5 ,6 7 6
For further details write
MINNESOTA COMMERCIAL MEN’S
ASSOCIATION
PAUL CLEMENT, Secretary
2550 Pillsbury Ave.
*
Minneapolis, Minnesota
N orthw estern B anker
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Federal Reserve Bank of St. Louis
March 19M
26
slipped and fell in th e doorw ay as a
resu lt of some ice accum ulation on the
floor th a t had been negligently p e r
m itted to be th e re by th e com pany
operating the hotel. T he g u est sued
both th e b an k er and th e com pany for
dam ages. Could he recover from th e
banker?
HELPING FARMERS W IT H
LIVESTOCK
(C ontinued from page 15)
is th a t we w ill buy and loan w ithout
cost or risk to th e farm er, a pu re bred
bull—age about 4 to 5 m onths—from
a high producing herd. W hen the
farm er is done w ith him we sell the
bull, take out our in v estm en t and in
terest, and split th e profits 50-50. If
th e btdl dies we take th e loss. The
m ain th in g is to get out enough to
spread th e risk. If anyone is in te r
ested in th e idea of g ettin g rid of
scrub sires, th is is one good w ay to
do it—for th e m an w ho uses a scrub
w ill take on a deal like this. Of course
we w an t to see th a t th e bulls go into
the h ands of m en w ho w ill give them
good care—b u t even th en too m any
of these fellows are not p articu lar
enough about g etting good sires.
W e have the feeling th a t a m an who
will look after a bunch of sheep, w ill
m ake m ore m oney on his in v estm en t
th a n in m any o ther lines of livestock.
Yet th ere are not enough sheep avail
able to satisfy th e dem ands. W e or
ganized a sheep m eeting, had one of
th e m en from th e E xtension D epart
m ent of the college come over from
Ames and called in all we had found
in te re sted as a re su lt of extensive
over-the-counter visits. T he re su lt of
th a t m eeting w as th a t last fall we
ordered 615 head of ewes and five
p u re bred bucks. M ost of these w ere
on order, b u t again we filled out the
cars and had no trouble in selling the
ewes w hen th ey arrived. W e th in k
we now have enough in te re st in sheep
No. The ow ner of the h otel w as not
liable to the g u est for the hotel opera
tor’s n egligen ce. H e had no control
or righ t of p ossession of the p rem ises
because he had leased them outright.
Another Annual Gain
M innesota Com m ercial M en’s Asso
ciation, M inneapolis, has closed a n
o ther successful year, w ith an increase
in resources and policies in force, ac
cording to P aul Clem ent, secretary of
the organization. The th irty -six year
old association at th e end of 1940 had
25,676 policyholders on its books.
Total resources of th e association,
according to its sta te m e n t on Decem
b er 31, 1940, am ounted to $309,841, the
larg est single item of w hich w as cash
of $102,465. U nited States gov ern
m en t securities and bonds of m unici
palities and th e ir subdivisions totaled
m ore th a n $123,000, w ith th e balance
of th e resources m ade up of sound in
vestm en ts of various types.
P ro m p t pay m en t of claim s is a t
tested to by th e sm all figure of only
$22,000 of such item s aw aiting proof
a t th e end of last year. M innesota
Com m ercial M en’s at th e year-end
carried a reserv e of $282,415 for the
protection of its m em bers.
C o m p lete A u to m o b ile ,
W o rk m e n ’s C om pensation and
G eneral L iability C overages
•
Soundly Serviced for the
Satisfaction of Your Clients
ALLIED MUTUAL CASUALTY COMPANY
Harold S. Evans, President
Hubbell Building
Des Moines, Iowa
to help get a dipping ta n k in th e
spring and to help organize a “Q uality
Lam b P roduction P ro g ram .”
The m ain th in g we have done is to
be sincerely in terested in try in g to
help. We have not pushed our p ro
gram onto anyone b u t have offered
it to m any and have gotten m any in
terested responses. On th e deals w e
have tak en a slight m arg in for our
own protection—b u t m ainly we have
gotten g reat good w ill from m any
sources.
It is probable th a t not every b an k
could do th is sam e thing. If we did
not have th e young m an skilled in
this line we w ould not atte m p t it o u r
selves—b u t’ we do Have him and we
are w ell satisfied w ith the resu lts w e
have achieved.
M ID-W INTER TRUST
CONFERENCE
(C ontinued from page 18)
m em bers of com m ittees and boards—
each draw ing upon his ow n business
or professional or financial know ledge
and experience and d raw ing also upon
th e collective inform ation supplied by
these specialists.
“People desire ard en tly th a t th e ir
estates and tru sts be handled im p ar
tially as regards the beneficiaries and
confidentially as regards all th e re st
of th e w orld. T ru st in stitu tio n s m ake
a business of handling estates and
tru sts and have in th e ir service only
persons w ho take a professional a tti
tude—one of absolute confidence-—to
w ard all personal relationships.
“People desire also of th e ir execu
tors, tru stees, and g u ardians th a t th ey
be accessible at all reasonable tim es
w ith o u t absence or inaccessibility on
account of personal affairs or o th e r
causes. T ru st in stitu tio n s have fixed
and w ell-know n places of business,
stated business hours, and definite as
signm ents of d u ty to staff m em bers.
“People w an t th e ir executors, tru s
tees, and guard ian s to be guided in do
ing rig h t and kep t from doing w rong
ra th e r th a n to be caught and punished
afte r th ey have ign o ran tly and wilfrdly done w rong. T ru st in stitu tio n s
are g overnm ent supervised and th is
supervision is designed to im prove
tru s t practices.”
I
H. RO SEBERR Y , vice president
I_♦ and m anager tru st departm ent,
S ecu rity-F irst N ational B ank of E os
A ngeles:
“It is our hope to arouse tru s t of
ficers to place g reater and continued
N orthw estern B anker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
March 19 M
27
em phasis on th e annuity-type tru sts,
u n til th is ty p e shall becom e th e basic
ru le of tru s ts and th e p re se n t conven
tional type sh all becom e th e con
sidered exception. L iving persons,
u su ally those d ependent upon th e cus
to m er w ho creates a tru st, are o rdi
n a rily his chief concern in providing
benefits u n d e r his tru st. R em ainder
m en are a p t to be p u rely secondary in
his objective. In m an y cases th ey
are m entioned m erely as a class to
tak e th e prin cip al a fte r it is supposed
to have served th e needs of th e p ri
m ary beneficiary.
“D epression problem s and a k een er
analysis of th e objectives and p e r
form ance of tru s ts have forced both
th e public and tr u s t in stitu tio n s to th e
decision th a t m an y tru sts, as now con
stitu ted , are not serv in g th e ir chief
original purposes as satisfacto rily as
th e y m ight. It rem ain s for us to cor
re c t th is for th e fu tu re by offering to
ou r custom ers now, plans w hich w ill
effectuate th e ir tr u s t plans b e tte r th a n
any o th er in stru m e n ta lity th a t can be
found.
“F o r th e purpose of refo rm in g our
w hole tr u s t stru c tu re upon th e plan
of u sing b o th p rin cip al and incom e
for th e benefit of th e p rim a ry or p re
fe rre d beneficiaries—th e life te n a n ts—
an d p e rm ittin g th e residue, if any, to
go to th e secondary beneficiaries—the
rem ain d erm en —five different tru s t
plans, all of w hich are annuity-type
tru sts, are suggested. T hey are th e
gross incom e plan, th e ‘invasion of
p rin cip al upon d irectio n ’ plan, th e p e r
centage of prin cip al plan, th e fixed in
come plan, an d th e a n n u ity plan .”
A bout Ideas
Funny thing about ideas— they never go to work
for you until you go to work with them.
yes S ir ___
— You' ve got to put them to work yourself*
Here is an idea you won’t have to experiment with,
because it has been tried with success in hundreds
of agencies. It’s an idea that will give the insurance
department of your bank a measurable advantage.
I n v e s t i g a t e th e p o s s i b i l i t i e s o f a W e s te r n
M u tu a l c o n tr a c t.
C ity National, Chicago
A t th e a n n u al m eeting of th e stock
holders of th e City N ational B ank and
T ru s t Com pany of Chicago, R ichard
W agner, p resid en t and directo r of The
Chicago C orporation, w as elected to
th e board, to g eth er w ith all o th er di
rectors.
Mr. W agner is w ell-know n in b u si
ness and financial circles in Chicago.
Besides being active head of his own
organization, he is vice p resid en t and
d irecto r of th e F o rt D earborn M ort
gage Com pany, directo r of th e P a rk e rs
bu rg Rig and Reel Com pany, and di
recto r of th e Blue Ridge Corporation.
A t th e an n u al m eeting of th e direc
tors, A ndrew E. W igeland w as pro m o t
ed from assista n t vice p resid en t to
vice president, and Leslie Reid w as
m ade a ssista n t tr u s t officer. All oth er
officers w ere re-elected.
Legal Reserve
Ron-Assessable
fire and Auto Policies
W ESTERN M UTUAL
FIRE INSURANCE COMPANY
DES MOINES
Over a Third of a Century of Safety and
“A m an stole m y car last n ig h t.”
“Did you get a look at th e fellow ?”
“No, b u t I got his license n u m b er.”
Service With Savings
N orthw estern B anker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
March 1941
28
No. X I I of a Series
IMEST1MT m ill« . . . a n i
GcmtniJßutkm ta
During the past year—-through the columns
Iow a’s present fine highway system—-the
of this publication— it has been the pleas
thriving condition of many of Iowa’s larg
ure and privilege of the Iowa Investm ent
est industrial plants— innum erable m unici
Bankers Association to discuss, dispassion
pally-owned utility plants— and scores of
ately, the functions of Investm ent Banking.
new, m odernly-equipped schools, com m u
nity buildings, hospitals and other public
im provem ents.
As stated previously, the purpose of this
series of advertisem ents has been to ap
praise, rather than to praise, Investm ent
Banking.
Through the m edium of the Iowa Invest
ment Banker, capital, seeking em ploym ent,
moves into channels of activity and useful
ness— w hile, at the same tim e, providing
During the past twelve-m onth, it has been
the endeavor to point out the definite con
safety of principal and a reasonable re
m uneration to the investor.
tribution the Investm ent Banking interests
of Iowa have m ade toward the enlargem ent
of our econom ic, social and cultural life.
Investm ent Banking has made definite and
lasting
contributions
to
our
American
By way of review— Iowa Investm ent Bank
standard of living that no thinking person
ers are, in no sm all part, responsible for
Avill
deny.
Iowa I n v e s t m e n t B a n k e r s Association
N orthw estern B anker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
March Ì9 b l
ÜÜ
29
The M o n th ’s M arket Maneuvers
Despite
the
sp rea d
of
la b o r
tr o u b le s
th r o u g h
o u t th e c o u n tr y , in
d u str ia l p ro d u c tio n
c o n tin u e d a t a h ig h
ra te o f a c tiv ity in
J a n u a r y — p ro b a b ly
s e t tin g an a ll tim e
reco rd .
B u t m ar
JA M E S H. CLARKE
k e ts w e r e ir r e g u la r
an d th e tren d Avas lo w e r . F e a r s o f a
p r o fitle ss p r o sp e r ity , Avorries a b o u t in
c r ea sed ta x e s an d h ig h e r Avage c o s ts —
p lu s, o f c o u rse, th e G o v e r n m e n t’s p ro
gram o f fin a n c in g — m ad e fo r c a u tio n
in in v e s tin g c ir c le s.
The L on d o n stock m a rk e t w h ich
had been acting better than our ow n
— all things considered— tu rn ed d ow n
w ard in F ebruary. This was d istu rb
ing. A dditional A m erica n sto ck hold
ings of B ritish in vesto rs w ere liqui
dated w h ich brought pressure on our
m a rkets. T his w ar n ew s w as m ixed.
E n g la n d ’s successes in A frica w ere
offset by G erm an advances into the
B alkans. Increased shipping losses
and w orries of an all out offensive on
B rita in w ith th e com ing of spring —these too w ere upsetting.
D evelopm ents in th e F a r E a st re
ceived increasin g a tte n tio n d u rin g th e
m onth. Japan, T h ailan d and Indo
c h in a all figured p ro m in en tly in th e
new s—a n d as we w rite th is on th e
m o rn in g of F rid ay , F e b ru a ry 28, th e re
are indications of serious trouble. The
E n g lish forces aro u n d Singapore can
not stay out of a conflict if it develops
—and o u r ow n G overnm ent w ill not
ignore fu rth e r so u th w ard m oves by
Japan. The vario u s w eekly letters
from W ash in g to n speak of o u r g ettin g
into a w a r w ith in th re e to six m o n th s
—refer to it as th o u g h it is p ractically
sure. One cannot be v e ry optim istic
about m a rk e ts in th ese tim es.
The stock m arket suffered a bad
relapse in F ebruary, althou gh a rally
in the final feu" days brought it back
som ew h at. On January 31 th e D oaaJon es average on in d u strial stock s
stood at 124.13—yesterd ay (February
27) afternoon at the close it Avas 121.87.
In other Avords, a decline of 2.26—
w hich is not bad for a m onth. B ut
th at tells on ly part of th e story. A
series of sharp d eclin es in the m iddle
of the m onth—in clu d in g a break of
3.44 points on the fou rteen th —brought
prices dow n to 117.66—Avithin six
Prepared for
The Northwestern Banker
By James H. Clarke
Assistant Vice President
American N atio nal Bank & Trust Co.
Chicago
points of the Ioav hit in June, 1940,
France collapsed.
A llie n
A s selling pressure relaxed the m ar
k e t rallied, although volum e of trad
ing was small. Im p ro vem en ts of 2.05
points on the tw e n tie th and 1.25 points
on the tw en ty-fo u rth helped to bring
the m a rket back. A s ive w rite this,
there have been tw enty-one days of
trading in F ebruary— tivo holidays.
On tw elve days gains w ere recorded,
on n in e days there w ere losses. D ull
ness continued throughout the m o n th
and again in F ebruary as in January
there was no day in w h ich as m a n y as
a m illion shares w ere traded. On
tw o occasions during the m o n th , sales
of m em berships on the N ew Y ork
S tock E xchange w ere m ade at $26,000
— the low est price since 1898. I n 1929
a m em bership sold at a high of $625,000— n ot including a dividend of onehalf a m em bership w hich was de
clared th a t year. A p p a ren tly, real es
tate values, prices fo r fa rm products,
and such are n ot the only things that
have been deflated in the past few
years.
S u rp risin g ly enough, th e actual
n u m ber of sh ares listed for trad in g on
th e New Y ork Stock E xchange is
larg er now th a n in 1929. B ut in 1940
only 50 p er cent as m any shares w ere
trad ed as in th e depression low y ear
of 1932—and volum e has declined in
five consecutive years. In th e first
tw o m onths of 1941 th e volum e w as
27 p er cent below th e sim ilar period
of last y ear—th is m ay be th e sixth
consecutive drop. M aybe th e stock
b ro k ers have reason to be unhappy.
The b ig g est lieAis in the bond m ar
k et Avas the U nited S tates Treasury
advance refinancing of ap proxim ately
$1,221,500,000 of bonds and n otes fa ll
in g due on March 15. T h is follOAved
an in crease by C ongress of the debt
lim it from $49,000,000,000 to $65,000,000,000 and the authorization to issu e
the first w h o lly taxable bonds. H old
ers of the called or m atu rin g issu es
AArere offered a choice of seAren to nine
year 2 per cen t bonds or tw o year
% per cen t notes. D oubtless, m ost
holders took the bonds. T his m orning
the bonds are quoted 101.4 on the bid
side to g iv e a taxable yield of about
1.85— the notes at 100.24 to yield .31
per cent—fu lly taxable. T h ese prices
and y ield s are of grea test in terest—
th is b ein g the first financing of th is
kind and preceding as it does an of
ferin g of a billion or less in a couple
of Aveeks to raise neAv m oney. D aily
statem en ts of the T reasury sh o w ex
p enditures for N ational D efen se run
n in g n ow b etw een tAventy and th irty
m illion dollars a day—yes, Ave shall
see lots of G overnm ent financing for
a lon g tim e to com e.
Bonds w ere generally lower in
F ebruary and n ew financing w as
sm aller than the recent average. A n
issue of $90,000,000 of R epublic Steel
Com pany bonds was delayed a couple
of tim es in F ebruary, but m ay be of
fered M onday, M arch 3— before this
article appears in print. Georgia P ow
er C om pany decided to do this re
fu n d in g p riva tely and sold $101,271,000
principal am ount of first m ortgage
3VFs of 1971 to a group of tw entyseven insurance companies. The W is
consin Public Service Com pany sold
$26,500,000 first m ortgage 3VPs of 1971
at a price of 106— this m orning’s W all
S treet Journal quotes the bond 105 %
on the bid side. Chesapeake and Ohio
Railroad did refunding in the am ount
of $24,800,000 and there w ere a few
other sm aller railroad deals. Prospec
tive offerings for M arch include— in
addition to the $90,000,000 Republic
Steels already m entioned — $65,000,000
of Pacific Gas and Electric first m o rt
gage 3’s of 1968 and $16,000,000 of P ub
lic Service of Oklahoma first m ortgage
3VPs of 1971. There are a n u m b er of
other com panies w ith financing pro
gram s in m ind, but m a rket conditions
w ill have to im prove before offerings
are made. As the m o n th closed, m ore
stren g th w as developing to reduce the
losses recorded in the earlier m a rkets
— but this was n o t so clearly defined
as to w arrant an opinion as to the es
ta b lishm ent of a trend.
Steel p lan ts are operating a t v irtu a l
capacity, as are th e m otors, airplanes,
chem icals—practically all in d u stries
for th a t m atter. C arloadings are ru n
ning ahead of production a t th is tim e
last year. E vidence becomes clearer
th a t 1941 w ill be the g reatest y ear in
our h isto ry for production, high taxes
and top w ages—for factory w orkers.
N orthw estern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
March 1941
30
W h y Investment Dealers
Compulsory Competitive Bidding
AIN ST R E E T and W all S treet
sat on th e sam e side of the con
ference table w h en th e S ecuri
ties and E xchange Com m ission asked
securities dealers to come to W ash
ington last m o n th to discuss com
pulsory bidding for new issues of cor
poration securities.
D ealers from th e m iddlew est and
n o rth w est w ere am ong th e m ost em
phatic opponents to th e proposal and
helped to tran sfo rm w h a t some had
expected to be p erfu n cto ry form alities
into som ething big enough to convince
th e SEC th a t th e th re a t to th e estab
lished procedure of securities d istri
butio n had aroused opposition from
all over the country. F o rty in v est
m en t b an k ers appeared, all b u t tw o in
opposition. Ten re p re se n ta tiv es of in
vestin g in stitu tio n s th a t spoke w ere
unanim ously opposed.
The point of g re a te st in te re st to
banks and o th er b u y ers of securities,
p artic u la rly in th e sm aller in terio r
cities, w as th e insistence on th e p a rt of
alm ost all th e in v estm en t bankers,
th a t for th e g o vern m en t agency to
com pel com petitive bidding w ould
destroy the m ach in ery w hereb y secu
rities are now offered sim ultaneously
from coast to coast th ro u g h selling
groups m ade up of h u n d red s of dealers.
The re su lt w ould concen tratio n of th e
securities business in th e h ands of a
few large eastern houses, th e in v est
m ent b a n k ers told th e Commission,
and these houses w ould ten d to sell
the choicest new issues to a few large
in stitu tio n a l investors, such as th e big
life in su ran ce com panies, w hom th ey
could reach quickly and econom ically.
M
One w itn ess w ho im pressed upon
th e Com m ission th a t in stitu tio n s and
individuals served by th e sm aller deal
ers of in te rio r cen ters w ould be
harm ed, w as P au l W. Loudon of Piper,
Jaffray & Hopwood, M inneapolis,
w hom ea ste rn n ew spapers recognized
an d identified as “one-tim e All-Am eri
can q u arterb ack at D artm o u th .”
He said: “I t is our h o n est belief th a t
th e fu rth e r cu rtailm e n t of offerings
to sm all dealers, w hich com pulsory
com petitive bidding in public u tility
offerings w ould cause, w ould be th e
difference for m any of continuing in
business w ith th e hope of b e tte r days,
N orthw estern B anker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
March 19M
By W in fie ld C . Jackley
President
Jackley & Company
Des Moines
or going under. Should th e la tte r be
th e case, w ho will care for the sm all
inv estors th a t we serve and how can
th ey hope to obtain high grade se
cu rities to the ex ten t th a t th ey need
W IN F IE L D
C. JA C K LEY
th em and w an t th em to p rotect th e ir
capital or savings?”
As to th e effects upon buyers of se
curities, p erhaps th e best sum m ation
w as given in th e testim ony of C. Jo h n
K uhn, vice presid en t of the F irem en ’s
In su ran ce Com pany of N ew ark, New
Jersey, w ho told th e SEC th a t it was
“alm ost inconceivable” th a t an y th in g
b u t m axim um prices w ould be paid
u n d er a system of com pulsory bidding,
“w ith all of its a tte n d a n t disadvan
tages.”
O ther objections w hich he regis
tered were:
1. C om pulsory com petitive bidding
w ould destroy th e professional rela
tionship existing betw een th e u n d e r
w rite r and his client.
2. T he “sense of resp o n sib ility ” of
th e in v estm en t b an k er for the u lti
m ate p u rch aser w ould be “v irtu ally
elim inated.”
3. N either u tility executives nor in
vestors w an t it. T here has been an
“absence of clam or” for it on th e p a rt
of u tility people and professional se
c u rity buyers have show n “conspic
uous re s tra in t” from req u esting it.
4. Inv esto rs could not rely on the
investigations of u n d e rw rite rs as at
present.
5. It w ould deny issuers and in v est
ors a professional service com parable
to th a t of law yers and engineers.
6. U nder com pulsory bidding, could
investors “retain any confidence th a t
m atu rities w ould be m et if th ey h ap
pened to come due du rin g periods of
crisis? W ho, un d er a system of com
petitive bidding, w ould come to th e
rescue of a corporation attem p tin g to
issue securities w hen tim es are h a rd ? ”
7. The sm all in v esto r’s problem of
g etting satisfacto ry securities w ould
be increased because m ark ets w ould
ten d to be m ore narrow .
8. P riv ate placem ent, th e “disadvan
tag es” of w hich are “freely recog
nized,” w ould be stim ulated.
Mr. K uhn denied th e existence of
harm fu l “concentration,” b u t said in
any event, “it w ould h ard ly be eco
nom ical to take p unitive m easures
against th e th ree larg est autom obile
m an u factu rers w ho have provided a
high grade article at a low cost, so as
to enable a sm aller com pany w ith
m eager resources, capacity and abil
ity, to com pete on a price basis w ith
larg er com panies.”
Commercial Credit
Com m ercial C redit Com pany rep o rts
th a t gross volum e of all receivables
acquired du rin g 1940 w as $845,258,802.57, com pared w ith $625,868,942.72
for 1939. Receivables acquired d u r
ing th e y ear exceeded collections on
o u tstanding receivables, resu ltin g in
a substan tial increase in average cash
em ployed d uring 1940 over 1939, and
an increase in n et incom e of $397,254.47 for 1940, com pared w ith 1939,
despite an increase of $1,693,737.72 in
reserv e for federal incom e and o th er
taxes in 1940.
N et incom es from operations avail
able for consolidated in te re st and dis-
31
count charges for 1940, a fte r charging
off all losses an d p roviding am ple re
serves for doubtful item s, w as $13,200,035.48, com pared w ith $11,586,503.06 for 1939. Consolidated in te re st and
discount charges w ere earn ed 6.48
tim es for 1940, com pared w ith 5.07
tim es for 1939.
N et incom e from operations av ail
able for dividends, a fte r deducting
m in o rity in te re s ts ’ p o rtio n —$1,745.18
in 1940 and $6,340.68 in 1939—and a fte r
providing reserv es for all federal and
o th er taxes, w as $8,310,907.83 for 1940,
com pared w ith $7,913,653.36 for 1939.
A fter p ay m en t of $518,236.52 divi
dends for 1940 on th e 4% p er cent
cum ulative convertible p re fe rred stock
o u tstan d in g (w hich dividends w ere
earned 16.03 tim es in 1940, com pared
w ith 15.27 tim es in 1939), th e re re
m ained n et incom e of $7,792,671.31, or
$4.23 per share, applicable to 1,841,973
shares, including scrip, of com m on
stock of th e com pany o u tstan d in g on
D ecem ber 31, 1940. T his com pares
w ith $7,395,416.84, or $4.01 p er share,
applicable to 1,842,007 sh ares of com
mon stock, including scrip, o u tsta n d
ing on D ecem ber 31, 1939.
N et incom e for th e six y ears 1935
to 1940, inclusive, w as $58,559,768.01
of w hich $54,463,037.72 w as applicable
to th e com m on stock of th e com pany,
afte r p ay m en t of dividends on th e
p referred stock outstanding.
N ational Safe D ep osit A s s o c ia tio n -
H otel S tatler, Buffalo, New York,
M ay 22-24.
N ational A ssociation of B ank A uditors
and Com ptrollers 17th A nnual N a
tional M eet —Chicago, Illinois, Octo
b er 8-11.
A rkansas — A rlington
H o t e l , H ot
Springs, May 14-15.
C alifornia —H u n tin g to n H otel, P asa
dena, May 21-23.
Idaho —Sun Valley, Ju n e 16-17.
Illin ois — Golden Jubilee, P a l m e r
House, Chicago, May 26-28.
Indiana —Claypool Hotel, Indianapolis,
May 14-15.
B an kers A ssociation —H o
tel Stevens, Chicago, Septem ber 28October 2.
A m erican
land, Ju n e 26-28.
M innesota —St. Paul, Ju n e 11-13.
M issouri —E lm s Hotel, E x c e l s i o r
MOT OR S
M ontana —New Florence Hotel, Mis
soula, Ju n e 20-21.
N ew M exico —Lordsburg, A pril 18-19.
N orth D akota —H otel P atterson, Bis
m arck, Ju n e 17-18.
Ohio —N etherlands-Plaza
Hotel, Cin
cinnati, Ju n e 4-5.
O klahom a —S kirvin Hotel, Oklahom a
City, May 8-10.
•
ACCEPTANCE
CORP ORAT I ON
T
is engaged primarily in facilitating wholesale distribution
and retail sales of the following products of General
M otors C orporation and its w o r ld w id e a ffilia tes:
CADILLAC,
Convention Calendar
tem ber 8-9-10.
K ansas —K ansas City, May 15-16.
M ichigan —G rand Hotel, M ackinac Is
Springs, May 12-14.
State Conventions
GENERAL
Iow a —H otel F o rt Des Moines, Sep
BUICK,
OLDSMOBILE,
PONTIAC,
CHEVROLET
automobiles; f r i g i d a i r e appliances for refrigeration and
air conditioning; d e l c o lighting, power and heating
equipment; g m c trucks; BEDFORD, v a u x h a l l and other
foreign made automotive vehicles.
A. B. A. C onsum er Credit C onference
—H otel S tatler, St. Louis, M issouri,
A pril 23-25.
A. B. A. E x ecu tiv e C ouncil Spring
M eet —H om estead, H ot Springs, V ir
ginia, A pril 27-30.
A. B. A. R egion al C onference —W al
dorf-A storia H otel, N ew Y ork City
—M arch 5-7.
A. B. A. R egion al C onference —B row n
Hotel, Louisville, K entucky, M arch
The business consists of investments in selfdiquidating
credits, widely diversified as to region and enterprise,
capital em ployed being in excess o f $ 8 0 ,0 0 0 ,0 0 0 .
In obtaining short term accommodation, g m a c issues
one standard form of note. This obligation it offers to
banks and institutions, in convenient maturities
and denominations at current discount rates.
20- 21 .
In stitu te of B an k in g —St.
F ran cis H otel, San Francisco, Ju n e
A m erican
GENERAL
MOTORS
2- 6 .
A ssociation of R eserve City B an kers
—H otel H ershey, H ershey, P e n n
sylvania, May 4-7.
N ational A ssociation of B ank A uditors
and C om ptrollers 9th A nn ual E ast
ern R egion al C onference— Boston,
M assachusetts, A pril 18-19.
N ational A ssociation of B ank A uditors
and C om ptrollers 7th A nnual MidC ontinent R egion al C onference—
Cleveland, Ohio, M ay 16-17.
INSTALMENT
PLAN
These
notes
EXECUTIVE OFFICE
N E W YORK
are available, in limited amounts,
upon request.
BRANCHES
IN PRINCIPAL CITIES
N ational A ssociation of M utual S av
in gs B an ks —B ellevue-S tratford H o
tel, P h iladelphia, A pril 30, May 1-2.
N orthw estern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
March 1941
32
South D akota— H otel F ra n k lin , Dead-
Regional Conference
wood, Ju n e 26-27.
T exas —H ouston, May 21-23.
U tah —G rand Canyon H otel, Yellow
stone N ational P ark , A rizona, Ju n e
13-14.
The regional conference to be held
by th e A m erican B ankers A ssociation
in Louisville, K entucky, M arch 20th21st, for banks in fifteen so u th ern and
m idw estern states w ill stress th e im
p ortance of im proved and increased
b anking services, an analysis of th e
program th a t has been arran g ed for
the conference reveals.
A t th e opening session of the con
ference, P. D. H ouston, p resid en t of
th e A. B. A., w ho is ch airm an of the
board of th e A m erican N ational Bank,
N ashville, Tennessee, w ill sound the
On C. of C . Board
Leslie McMahon, vice p resid en t of
th e City N ational B ank and T ru st
Com pany of Chicago, w as elected a
directo r of th e Illinois C ham ber of
Com m erce at th e ir recen t board m eet
ing.
1
B O N D S
Public Utility
In dustrial
R a ilroad
M unicipal
A. I. B. Candidate
A .C . A L L Y N and c o m p a n y
Incorporated
100 W est Monroe Street, Chicago
N ew York
R ep resen tatives:
M ilw aukee
W aterloo
opening keynote of th e two-day m eet
ing in an address on “Im proved
B anking Service T hrough Effective
C ooperation.”
The 1,000 b ankers from Alabam a,
A rkansas, Florida, Georgia, Illinois,
Indiana, K entucky, M ichigan, Mis
souri, N orth Carolina, Ohio, South
Carolina, Tennessee, V irginia, and
W est V irginia w ho are expected to
a tten d th e conference w ill h ear dis
cussions of seven sep arate fields of
banking services. The topics to be
discussed range from “B etter E a rn
ings T hrough B roader Services,” to
“F inancing
Defense
L oans” and
“Com m ercial B anking Service—-Today
and Tom orrow .”
The conference will also featu re an
address bj^ A. L. M. W iggins, presi
dent of the B ank of H artsville, South
Carolina, on “L egislative Develop
m ents.” Mr. W iggins is ch airm an of
th e A. B. A. F ed eral Legislative Coun
cil. Dr. W illiam A. Irw in, national
educational director of th e A m erican
In stitu te of B anking, w ill speak on
“The Challenge to F ree E n te rp rise ”
a t a public m eeting on F rid a y eve
ning, M arch 21st, w hich w ill b ring
th e conference to a close.
Omaha
Des Moines
Boston
T he M ilw aukee C hapter of th e
A m erican In stitu te of B anking has
placed in nom ination th e nam e of D.
W esley Correll, a ssistan t cashier in th e
B usiness D evelopm ent D ep artm en t of
th e F irs t W isconsin N ational B ank as
a candidate for th e executive council
Cedar Rapids
Federal Discount Corporation
D ubuque, Iowa
AUTOMOBILE FINANCE
T im e P a ym en t Plans for
Purchasers of A u to m o b iles and H ousehold A p p lian ces
m
m
u
SMALL LOANS
■ ■ ■
B ra n ch es in Iow a— M in n esota— W isco n sin — Illin o is
Capital, Surplus and U ndivided Profits
Exceed One M illion Dollars
Short Term Collateral Trust Notes
In form ation on R equ est
N orthw estern B anker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
March 1941
D. W E S L E Y
C O R R EL L
of th e In stitu te. T his election w ill be
held in San F rancisco a t th e A nnual
N ational Convention in Ju n e of 1941.
T he E xecutive Council consists of
13 m em bers, each councilm an being
assigned divisional te rrito rie s for the
prom otion of ad u lt education am ong
bankers and in v estm en t m en. M em
bers of th is Council form th e g overn
ing body of th e N ational O rganization
w ith h ead q u arters in New Y ork City.
W es C orrell en tered th e b anking
33
field in 1919 as a m essenger an d has
been connected w ith th e profession
since th a t tim e. He has been extrem ely
in te re ste d in th e A m erican In stitu te of
B anking, h av in g received his stan d ard
certificate in 1921, fu rth e r com pleting
several post-graduate courses.
Serving as tre a su re r, secretary , 2nd
vice presid en t, 1st vice p resident, W es
becam e M ilw aukee C h ap ter’s p resi
den t in 1938. He th e n served on th e
board of g o vernors and as p resid en t
of the A lum ni A ssociation.
Announces New Office
F ra n k K. H ouston, p resid en t of th e
Chem ical B ank and T ru st Com pany,
announced th a t th e office of th e Chem
ical B ank, now on F ifth A venue a t
54th S treet, w ill, aro u n d Ju n e 1st,
m ove into its new tw o sto ry building
a t 11 W est 51st S treet adjoining Rocke
feller Plaza.
“T his new b uilding now u n d e r con
stru c tio n w ill be occupied solely by
th e b an k ,” said Mr. H ouston, “and p ro
vision w ill be m ade th e re for all th e
services available a t o u r m ain office.
“In ad dition to facilities for g en
eral banking, th is new office w ill have
d ep a rtm e n ts for p ersonal and corpo
ra te tr u s t business, foreign and cus
tody d ep artm en ts, a n ig h t depository
and com plete safe deposit vaults.
O ther featu res of th e office w ill be
air conditioning, conference room s for
custom ers, and a large special section
for payrolls.
“T his spacious new office w ill be
attra c tiv e ly equipped and efficiently
staffed to give to th e in te re sts con
cen tra te d in th is area com plete com
m ercial, foreign, and individual b a n k
ing services.”
Auditors' Conference
H. H. Bailey, Jr., p resid en t of th e
C leveland C onference of B ank A udi
to rs and C om ptrollers, and com ptrol-
V. W .
ler of the M orris P lan B ank of Cleve
land, has invited b an k ers to atten d
th e Seventh Mid C ontinent Regional
C onference of th e N ational Associa
tion of B ank A uditors and C om ptrol
lers, w hich w ill be held at Cleveland,
Ohio, on May 15th, 16th, and 17th.
C harles Z. Meyer, com ptroller of
th e F irs t N ational B ank of Chicago,
as p resid en t of the N ational Associa
tion, w ill head th e v an g u ard of b an k
ers in attendance.
O ther national
officers w ho w ill a tten d are C. W.
B orton, a ssistan t vice president, The
Irv in g T ru st Company, New York;
O. A. W aldow, com ptroller, th e N a
tional B ank of D etroit; H ugh H. Pow
ers, cashier, Lincoln B ank and T rust
Com pany, Louisville, K entucky, and
Jo h n C. Shea, auditor, W hitney N a
tional Bank, Ne-\y Orleans, Louisiana.
In th e announcem ent, Mr. Bailey
states th a t the program is being con
stru c ted upon th e them e of effective
b an k operations and au d it controls.
M ay 15th has been set aside as open
house at Cleveland banks for visiting
guests, w ho w ill have an o p p ortunity
to view th e efficient and effective op
eratio n in Cleveland banks. Regis
tra tio n w ill begin in th e afternoon of
th e 15th, w ith inform al reception and
e n te rta in m e n t th a t evening. B usiness
sessions w ill s ta rt on F rid ay m orning,
th e 16th. F o ru m m eetings on several
subjects of general in te re st w ill occu
py F rid a y afternoon, w ith banquet
and a speaker of national note th a t
evening.
F in al sessions S aturday
m orning, closing w ith noon luncheon
and sightseeing trip in the afternoon.
Promotions
Jam es A. Duffy and W. W. Allen,
Jr., form erly a ssistan t cashiers, have
been elected vice p residents of The
P hiladelphia N ational Bank.
J. D ew ette Ingham has been ap
pointed an a ssistan t cashier.
B r e w e r
Co .
M u n ic ip a l B o n d s
The 1941 South Dakota Legislature h as ratified
the bond "pay-as-you-go" plan of the
Rural Credit Department
F I R S T N A T - S O O LI NE B L D G
M IN N EA PO LIS
COMMERCIAL
INVESTMENT
TRUST
IN C O R P O R A T E D
C om m ercial I nv estm en t
T rust Incorporated, with
capital and surplus in excess
of $66,000,000, provides a
nation-w ide sales finance
service through subsidiary
companies w ith a netw ork
of branch offices throughout
the U nited States.
T his
service, in the main, consists
of p u r c h a s i n g self-liqui
dating accounts, and ex
tends to autom obile dealers,
household appliance dealers,
and to m anufacturers and
dealers in many lines of in
dustrial, commercial and
professional equipm ent, in
cluding the heavy goods in
dustries.
C. I. T. offers its stand
ard notes for short term
accommodation in varying
am ou n ts from $1,000 to
$100,000, in maturities from
60 to 270 days and at cur
rent discount rates. T h ese
notes are payable at any of
our 300 depositary banks
located in principal cities
throughout the country.
L atest published fin a n c ia l
statement and list o f depositary
banks w ill be mailed upon request.
ADDRESS
Treasurer,
Commercial investment
Trust Incorporated
IParkAve., New York, N. Y.
N orthw estern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
March 19kl
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
35
painful in ju ry at th e Om aha stock
yards w here he w as looking a fter some
cattle. He slipped on stairs w hich
he w as descending, strik in g his shoul
der in such a m an n er th a t th e liga
m ents w ere in ju red and m edical aid
w as necessary. He w as tak en to th e
hospital to have th e in ju ry treated.
NEBRASKA
NEWS
Colon
CARL D. GANZ
President
Alvo
Ross to Norfolk
L eonard W. Ross, a ssista n t cashier
of th e L ivestock N ational B ank in
Sioux City th e p ast ten years, has been
appointed vice p resid en t and cashier
of th e N ational B ank of Norfolk, suc
ceeding R obert W eidenbach w ho re
signed to go into th e b an k in g business
for him self at E ldon, Iowa, it w as a n
nounced recen tly by P resid en t L. R.
Gillett.
The ap p o in tm en t carries w ith it a
place on th e b a n k ’s board of directors.
Ross w ill assum e his duties in N or
folk as soon as he can conveniently
m ake th e tra n sfe r, w hich w ill be in
th e n e a r fu tu re.
He sp en t his boyhood a t Sioux Falls,
w h ere he received his education. He
sta rte d his b an k in g career as a ssista n t
cashier in a b an k a t H ensel in 1916.
In th e W orld w ar, he w as an in fa n try
captain. A fter th e w ar, he again en
tered th e b an k in g business and w as
a ssista n t cashier of th e P la tte State
B ank a t P latte, South D akota, a posi
tion he held nin e years.
F o r one y ear he w as w ith th e State
B anking D ep artm en t of South Dakota,
serv in g in th e capacity of receiver.
Follow ing th is w ork, he becam e as
sista n t cash ier of th e L ivestock N a
tional B ank at Sioux City.
Group Meetings
In fo rm atio n from th e office of Sec
re ta ry H ughes reveals th a t th e w eek
of A pril 14th is being seriously consid
ered for th e series of 1941 N ebraska
Group M eetings. Tow ns w hich w ill
e n te rta in th e several Groups, subject
to la te r change, are B eatrice for G roup
One; N orfolk for G roup T hree; Mc
Cook for G roup F our; N o rth P latte
for G roup Five, and A lliance for
G roup Six. D efinite an n o uncem ent
will of course be m ade as soon as a r
ran g em en ts are com pleted.
Columbus Meeting
WM. B. H U G H E S
Secretary
Omaha
A t th e an n u al stockholders m eeting
of the State B ank of Colon, th e follow
ing w ere elected as directors for th e
ensuing year: Jo h n M urren, A rt R as
m ussen, George Orme, V ictor F ran so n
and A. V asina, and a t th e directors
m eeting th e follow ing w ere elected as
officers: P resident, Jo h n M urren: vice
president, V ictor F ranson; secretary,
George Orme; cashier, A. F. Vasina;
a ssistan t cashier, Miss M ildred R as
m ussen.
F ra n k Shonka, association president,
announced.
F e atu red w ere addresses by A. G.
Brow n, New York City, m anager of
th e a g ricu ltu ral credit d ep artm en t of
th e A m erican B ankers Association,
and Dan Otis, M adison, W isconsin, di
recto r of th e a g ricu ltu ral com m ission
of th e A. B. A.
Entertain Farmers
Also speaking w ere Carl D. Ganz,
Officials of th e P lattsm o u th State
Alvo, presid en t of the N ebraska B ank B ank w ere hosts recently to m ore th a n
ers A ssociation, and W illiam N. M it 300 farm ers of th e vicinity a t the
ten, F rem ont, chairm an of th e execu fo u rth an n u al d in n er and party. The
tive council of th e N. B. A.
affair w as held a t th e A m erican Leg
H.
L. G erh art of N ew m an Grove is ion building, w ith an ap p ro p riate p ro
vice presid en t of th e clearing house gram .
association and F re d G ruenhage, Co
lum bus, is secretary-treasurer.
Elgin
Mrs. Gallagher Dies
Mrs. M ary G allagher, 77, a director
and stockholder of the F irs t N ational
B ank of O’Neill, and w idow of E. F.
G allagher, pioneer banker, died a t h er
hom e afte r a m o n th ’s illness. She
leaves tw o sons, E. M., presid en t of th e
bank, and Donald of O’Neill.
Elect Officers
M em bers of th e Paw nee County
B an kers A ssociation m et in Table
Rock for d in n er and a business ses
sion. New officers of th e association
are L. C. F arw ell of DuBois, president;
M. K. V an H orne of Paw nee City, vice
president, and M arion Bonham of
Table Rock, secretary.
Walthill
A t an an n u al m eeting held in the
F irs t N ational B ank building in W alt
hill, the follow ing officers w ere elec
ted: P resident, J. B. R ossiter of W alt
hill; vice president, Geo. B usselm an
of Rosalie; cashier, P. H. L angenberg,
of W althill; assista n t cashier, Jo h n
Costello of W althill.
T he directors w ere re-elected: Nels
N elson of Rosalie; A. D. R aun, F. D.
Keefe of W althill; E. T. W in ter of
Lincoln.
Officers an d em ployes of m em berbanks of th e Colum bus Regional Clear Banker Injured
ing H ouse held th e ir re g u la r q u a rte rly
W. G. Boedeker, presid en t of th e
m eeting a t H otel T h u rsto n recently, M urray State Bank, suffered a v ery
The an n u al m eeting of the stock
holders of th e B ank of E lgin w as held
last m onth. All directors and officers
w ere reelected and the reg u lar divi
dend w as declared.
Stockholders w ere exceptionally w ell
pleased w ith th e 33 p er cent grow th in
deposits and 25 p er cent increase in
nu m b er of custom ers. T hey feel th a t
w ith th e recent 20 p er cent increase in
capital th a t th ey are in a m uch b etter
position to take care of additional
business and b e tte r serve th e territo ry .
Formal Opening
The B ank of C hadron opened last
m onth. Those w ho visited th e bank at
th e tim e of th e opening in th e m orning
w ere greeted by th e officers of the new
in stitution: C. J. A bbott, president;
L eroy A bbott, vice president; H enry
Spalding, vice president, and W. L.
Good, cashier.
The room had been new ly decorated
and it p resented a v ery pleasing ap
pearance. M any beautiful floral pieces
sen t to th e b ank in th e w ay of co n g rat
ulations w ere placed about the room.
These bouquets of flowers added a
g reat deal of beauty and pleasure to
those w ho visited the new b an k d u r
ing th e day.
Pierce
A t a recen t m eeting of th e stock
holders of th e Cones State B ank the
follow ing board of directors w as all
N orthw estern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
March 19bl
36
reelected: F re d Maas, Mrs. W oods
Cones, C. H. Chilvers, A ugust Koerting, and E. D. Beech. The b ank staff
com posed of F red Maas, president, E.
G. Schellpeper, cashier, and H arley
Bovee, a ssistan t cashier, w ere reelect
ed by th e directors.
York
D irectors of th e F irs t N ational B ank
of Y ork has nam ed tw o additional as
sista n t cashiers—F ra n k E. Craw ford
and W alter K upke. Mr. C raw ford has
been w ith th e b ank for m any y ears
and has been teller since th e elevation
of H. E. N ordlund to the cashiership.
Mr. K upke has been w ith th e b ank
since last A pril. He w as form erly con
nected w ith the H ordville bank.
O ther a ssistan t cashiers are A ugust
Z im m erer and Miss M amie Wood.
Rushvîlle
A lbert Dale of R ushville w as re
cently nam ed presid en t of th e Stockm en ’s N ational B ank of R ushville.
O ther officers of th e b an k are J. B.
B rew ster, vice president; E ddie Ottem an, cashier; Miss Jeren e W ard, as
sistan t cashier; B en n ett Joh n so n and
Miss H elen Forney, bookkeepers.
Photographs from banks, large and small, reveal
operators everywhere using Burroughs to post
the nation's checking accounts. This photograph
shows one section of the extensive offices
of The Detroit Bank, Detroit, Michigan.
Cedar Bluffs
POSTING
THE
CHECKING
N A T I O N ’S
ACCOUNTS
F ro m o n e e n d o f th e n a tio n to th e o th e r , b a n k s r e g a r d
B u r r o u g h s m a c h in e s as o u ts t a n d in g fo r s p e e d , e a se
a n d e c o n o m y — as w e ll as d e p e n d a b ilit y — in p o s t in g
c h e c k in g a c c o u n ts .
A n d to d a y — w ith b a n k s b u y in g m o r e B u r r o u g h s p r o d
u c ts th a n at an y o th e r tim e in a d e c a d e — th e r e is c o n
c lu s iv e e v id e n c e th a t B u r r o u g h s ’ n e w d e v e lo p m e n ts ,
m a c h in e s a n d fe a tu r e s are th e m o s t a d v a n c e d an d th e
m o s t d e p e n d a b le fo r m e e t in g to d a y ’s r e q u ir e m e n ts.
B U R R O U G H S A D D I N G M A C H I N E CO ., D E T R O I T , M I C H I G A N
Burroughs
DOES THE W O R K IN LESS TIME • W IT H LESS EFFORT « AT LESS COST
A t the an n u al m eeting of th e stock
holders of th e Com m erical State B ank
a t Cedar Bluffs th e follow ing officers
w ere elected for th e com ing year: A.
F. Vasina, president; Wm. Schere, vice
president; E. H. H enderson, cashier
and secretary, and R aym ond Grosse,
bookkeeper. Grosse w ill replace E lm er
R asm ussen, w ho resigned to accept a
position as clerk in a b ank in San
Francisco, California.
Crete
The City N ational B ank held its 30th
ann u al stockholders m eeting last
m onth.
The cashier, Clark W eckbach, gave
a rep o rt on th e condition of th e b ank
and its earnings for th e p ast year. It
w as followed w ith an in terestin g re
p o rt covering th e last five y ears of
th e b a n k ’s w ork.
T he sam e officers and directors w ere
re-elected at th e m eeting for th e en
suing year. Jo h n R othm uller, p resi
dent; E. C. Plouzek, executive vice
president; E. C. W eckbach, vice p resi
dent; C lark W eckbach, cashier; C. W.
W eckbach, a ssistan t cashier.
YO U R STATE BANKERS A S S O C IA T IO N
O FFIC IA L SAFE, V A U L T A N D
TIM ELO CK EXPERTS
F. E. DAVENPORT & CO.
OMAHA
N orthw estern B anker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
March Í9M
37
ball recently. H er fa th e r is presid en t
of th e Om aha N ational Bank.
J.
R. Cain, afte r 26 y ears of service
as general su p erin ten d en t of th e F irst
C hristian Sunday school a t Omaha,
re tire d recently. He w as honored by
a program d u rin g w hich he w as p re
sented w ith bouquets, a testim onial
book and a nu m b er of gifts from teach
ers and pupils. Mr. Cain is a vice
p resid en t of th e Om aha N ational Bank.
H e w as elected “superintendentem eritu s,” and A m brose C. E pperson,
a ssistan t U nited States d istrict a tto r
ney a t Omaha, an elder of th e church
for 40 years, w as nam ed “elderem eritu s.”
75 m en from
th e Om aha area left recen tly to
join th e staff of th e B ank of A m erica
in C alifornia.
M ost of th em w ill w o rk as tellers.
T hey w ere “re c ru ite d ” in O m aha by
George P lu m m er of San Francisco,
assistan t p ersonnel directo r of th e
bank.
Because of p opulation gains and a
business u psw ing in C alifornia due to
the defense program , th e b an k has
found m any of its bran ch es in need
of m ore tellers.
Am ong th e O m ahans w ho w en t to
join th e b an k are L yn n P eyton, Byron
Tharp and Jam es B. Gronstal, w ho
had been em ployed by th e F irs t N a
tional B ank of Omaha; George B.
Shields, a cashier in th e county tre a s
u r e r ’s office since 1926, and F rank
Dam on, teller a t th e C onservative Sav
ings and L oan A ssociation. All em
ployes w ere h ired w ith th e consent of
th e ir previous em ployers.
A
p p r o x im a t e l y
Casper Y. Offutt, tr u s t officer of the
U nited States N ational B ank of
Omaha, w as elected p resid en t of the
Om aha W elfare F ed eratio n and Com
m u n ity Chest for 1941 by th e board of
governors a t a recen t m eeting. He
had been tre a s u re r and ch airm an of
th e b udget com m ittee th re e y ears and
a m em ber of th e board four years.
M ax M iller w as elected a vice p re si
dent. T re a su re r is AY. B. M illard, Jr.,
vice p resid en t of th e Om aha N ational
Bank.
D aniel J. M onen, tr u s t officer of the
SELL YOUR BANK
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Without Publicity
Qualified, carefully investigated bank
employees furnished free
T H E CHARLES E. W A LT ER S CO.
Omaha, Nebraska
Om aha N ational Bank; A. L. Coad,
p resid en t of th e Packers N ational
B ank, an d Mr. M illard, w ere am ong
m em bers of the board elected to twoy e a r term s.
Jam es P. Lee, form er banker, w as
elected a m em ber-at-large for one year.
Collection of $99,802.17, second larg
est estate ta x in N ebraska history,
w as m ade from th e estate of G ottlieb
Storz, Om aha brew er. N et value of
th e estate w as $2,205,143, gross value
$2,543,116.
In 1934, th e state collected $164,798
from th e estate of G ilbert M. H itch
cock, form er U nited States sen ato r and
publisher of th e Omaha World-Herald.
Miss Jessie Clark, dau g h ter of Mr.
and Mrs. A\r. D ale Clark, is presid en t
of th e senior class at M acM urray Col
lege, Jacksonville, 111. She led th e
g ra n d m arch a t th e an n u al college
More stabilized em ploym ent, larg er
payrolls and increased real estate
values w ere predicted for th e Omaha
area by Ford E. H ovey, presid en t of
th e Occidental B uilding and L oan As-
WE WILL PURCHASE
CORN LO AN S
L iv e Stock N ational Bank
Om aha
(Member Federal Deposit Insurance Corporation)
'Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
March 19bl
38
•
sociation of Omaha, in his a n n u al re
p o rt to stockholders.
The stockholders, a t th e ir fifty-sec
ond an n u al m eeting, w ere told th a t
1940 w as one of th e m ost satisfactory
y ears in the h isto ry of th e in stitu tio n .
S tockholders re-elected Mr. Hovey,
J. E. D avidson, and W. R. M cFarland
to th e board of directors, reappointed
th e follow ing as officers: Mr. Hovey,
president; John T. B row nlee, Mr. Mc
F arlan d , and George T. M orton, vice
presidents; H. O. M iller, secretary;
D. H. K nott, tre a su re r; H. G. D esens,
a ssista n t secretary.
CHATS
ABOUT
THE
’ • f A r C 1' P L A N
N E B R A S K A
NEWS
L. W . P ow ers w as re-elected general
agent of th e F a rm C redit A d m inistra
tion of Om aha at th e an n u al m eeting
of th e district board of directors.
All officers of th e F ederal L and
B ank of Omaha, including P resid en t
Charles M cCum sey, w ere re-elected.
C. A. S tew art w as re-elected head of
th e F ederal In term ed iate Credit B ank
of Omaha, W alter E. A nderson of the
P roduction C redit C orporation, Jerry
H. M ason of the B ank for Co-Opera
tives.
W. A. Saw tell, p resid en t of the Stock
Y ards N ational B ank of South Omaha,
is th e new presid en t of th e Omaha
C learing H ouse A ssociation. He suc
ceeds H. M. B u sh n ell, presid en t of the
U nited States N ational B ank of
Omaha.
A. L. Coad, presid en t of the P ack
ers N ational, South Omaha, w as
nam ed vice president, and W illiam B.
H u gh es w as re-elected secretary -treas
urer.
M em bers nam ed on th e clearing
house com m ittee were: Mr. Coad,
chairm an; T. L. D avis, presid en t of
th e F irs t N ational; W. D ale Clark,
p resid en t of th e Omaha N ational;
A lvin E. Johnson, presid en t of the
Live Stock N ational of South Omaha,
Mr. B ushnell, and Mr. Sawtell.
Mrs. G w yer Yates, wife of the for
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S T A T E S
CHECK B O O K COMPANY
OMAHA.
NEBRASKA
N orthw estern B anker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
m er Om aha banker, recently u n d e r
w en t an appendicitis operation in
S anta B arbara, Cal. Mr. and Mrs.
Yates now live at Santa B arbara.
Mr. and Mrs. F rank B end er have
re tu rn e d from California, w here they
sojourned since the Rose Bowl game
on New Y ear’s day. T hey took an
a p artm en t in Los Angeles, m ade side
trip s to m any points of in te re st on the
coast.
One of th e first O m ahans th ey m et
after th ey arriv ed in California was
Jam es T. W achob, w ho is spending
th e w in ter in S anta B arbara.
R ecently nam ed to the new Omaha
com m ittee on civic defense, composed
of 26 businessm en, w ere V ictor B.
Caldwell, vice president, U nited States
N ational B ank of Omaha; W. Dale
Clark, president, Om aha N ational
Bank; A lvin E. Johnson, president,
Live Stock N ational Bank; C harles D.
Saunders, vice president, F irs t N a
tional Bank.
The com m ittee w as announced by
M ayor Dan B u tler to serve as an ad
visory and coordinating agency in
connection w ith problem s arisin g from
defense activities.
A. C. P otter, R obert H. Storz and
Joseph B arker have been re-elected'
directors of th e A m erican R eserve Life
Insu ran ce Com pany of Omaha.
L loyd E. Sherm an, an aly st for the
Om aha B ank for Co-Operatives, re
cently w as nam ed receiver for the
Iow a P o u ltry P ro d u c ers’ M arketing
A ssociation by D istrict Judge E. K.
D augherty a t O ttum w a.
O u t-o f-To w n ¥>anks
O u t-o f-to w n banks and bankers w ill find here
c o m p le te b a n k in g f a c ilit ie s fo r p r o m p t a n d
e co n o m ica l h a n d lin g o f accou n ts in C h icago. W e
w o u ld appreciate the op p ortu n ity o f serv in g you.
" M cC a r t n e y
N O T E : If y o u a r e n o t on M r.
M c C a r t n e y ’s t e r r i t o r y , w r i t e a n y
w a y . W e w il l r e l a y y o u r l e t t e r to
th e p r o p e r “ TJ. S .” r e p r e s e n t a t i v e .
« n i l T S D
•
March 19)1
C
it y
N
a t io n a l
AND
T R U ST
2 0 8
S O U T H
C O M PA N Y
B
a n k
of C h i c a g o
L A S A L L E
{Member Federal Deposit Insurance Corporation)
S T R E E T
39
H ow ard F reem an and P hil E asterday
rep resen ted the F irs t N ational and
W heaton B a ttey and E lm er D eK ay
the C ontinental N ational.
Lincoln Locals
ijif i
]•
G
o v e r n o r d w ig h t g r is w o l d
appointed W ade R. M artin, su
p erin te n d e n t of th e state b an k in g de
p artm e n t, as executive vice chairm an
of th e new N ebraska advisory de
fense com m ittee.
G risw old said he h ad sen t le tte rs
in v itin g prospective com m ittee m em
bers to confer w ith him in Lincoln.
A bout fifteen m em bers w ill be nam ed
on th e com m ittee to stu d y and co
ord in ate N eb rask a’s defense activities.
T he bill recen tly passed by th e leg
islatu re a t G risw old’s re q u e st nam ed
th e g o vernor ch airm an of th e com m it
tee. G risw old said he w ould recom
m end th a t th e secretary be chosen
from am ong th e p re se n t state officials.
T he com m ittee w ill cooperate w ith
federal defense leaders and serve as
an advisory agency d u rin g co n stru c
tio n of th e new F o rt Crook bom ber
assem bly p la n t n e a r Omaha, G riswold
said.
S everal ideas w ere advanced as to
how retail stores m ight recover the
charges on checks cashed for accom
m odation, b u t no uniform policy w as
adopted at the last m eeting betw een
rep resen tativ es of a n um ber of retail
estab lishm ents and th e C ontinental
N ational and F irst N ational Banks.
The m eetings w ere held for the
purpose of discussing th e w orking de
tails of th e service charge plan recen t
ly announced by the tw o banks.
The ban k ers expressed a w illing
ness to assist an y custom er to w hom
th e serviec charge applies in w orking
out plans w hich m ight reduce the
n u m ber of item s handled to b ring
about a reduction in the cost.
H. B. Sm ith w as general chairm an
of th e retail group, J. C. B arber, vice
chairm an, and H arold H inds, secre
tary . L. H. D aft headed a special
com m ittee w hich in itiated th e con
ference w ith th e b ank rep resentatives.
F rederick E. B eaum ont, 71, for
m any years a b an k er in Lincoln, died
last m onth at his home. He had
lived in Lincoln since 1912, and w as
vice presid en t and later cashier of
th e old N ebraska State B ank at 15th
and O.
W ith his b ro th er the late Charles
Beaum ont, he came to N ebraska from
C onnecticut and sta rte d in the b an k
ing business at M adrid. In 1912 th e y
came to Lincoln and established th e
b ank w ith F red B eaum ont as vice
presid en t and his b ro th er as cashier.
The b ro th e r died in 1917 and F. E.
B eaum ont becam e cashier. In 1928
th e b ank w as absorbed by C ontinental
N ational.
Hay Springs
At th e ann u al m eeting of th e board
of directors of th e F irst N ational Bank,
I. B. R ichm ond w as re-elected p resi
dent; C. F. Coffee, C hadron, vice p resi
dent; F ra n k L. Tulloss, cashier; A nna
M argaret P o tter, a ssistan t cashier and
P. C. M organ a new director.
The an n u al m eeting of th e officers
and directors of th e N o rth w estern
State B ank w as held w hen all officers
and directors w ho served th e p ast
year w ere re-elected.
The only change w as th e selection
of V era F e rre l as a ssistan t cashier
along w ith Joe M ueksch, w ho has
served several years.
S tate B ank S u p erin ten d en t W ade
M artin announced th a t a final divi
dend of $7,013 h ad been paid to de
positors of th e closed B ank of Stapleh u rst.
T he p ay m en t of 3.5 p er cent b ro u g h t
th e to tal received by depositors to
$107,207 or 53.5 p er cent.
W h e th e r N ebraska should consoli
date its state b an k receiverships u n
der th e ban k in g d e p a rtm e n t or p e r
m it th e judicial receivership to con
tin u e u n d e r th e direction of E. H.
L uikart w as a question th e legisla
tu r e ’s b an k in g ; com m erce and in s u r
ance com m ittee held u n d e r advise
m en t recently.
A bill by S enator Otto K otouc, H u m
boldt, proposing discontinuance of th e
judicial receiv ersh ip division w as
aired before th e com m ittee.
The
sh ift proposed in th e m easu re w as
recom m ended by re tirin g G overnor
Cochran.
"Sincere"
It is our most sincere desire to see you profit
from a connection with this bank. Let us help
you with your Lincoln items.
(ONTINENTAL RATIONAL
BaHk
LINCOLN
Member Federal D eposit Insurance Corporation
N orthw estern B anker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
March 19^1
40
•
Nebraska City
A t the an n u al m eeting of th e N ebras
ka City N ational B ank th e officers and
directors of th e estab lish m en t w ere all
re-elected. T hey are: W. L. W ilson,
president; W illiam K ropp, vice p re si
dent; O. J. Schneider, cashier; George
W. Slack, a ssista n t cashier; directors,
W. L. W ilson, O. J. Nelson, Jo h n M.
D ierks and R obert Schneider, W illiam
K ropp and K arl R. W ilson.
Officers and directo rs of th e Otoe
County N ational b ank w ere also re-
N E B R A S K A
NEWS
•
elected. Officers are: W illiam H. Pitzer, president; H. F. M eyer, vice p resi
dent; J. D. Stocker, cashier; H. H.
Teten, assistan t cashier; J. F. Cole, as
sista n t cashier. D irectors are: H. F.
M eyer, H elen J. Stocker, W illiam H.
Pitzer, M orton S tein h art and J. D.
Stocker.
The p resen t officers w ho have car
ried on th e affairs of th e b ank w ere
all re-elected as follows: H. A. S chneid
er, president; Carl J. Schneider, vice
president; E. W. Burdic, vice president;
F ra n k A. Cloidt, cashier; H. A. Schneid
er, C. J. Schneider, E. W. Burdic, F ra n k
A. Cloidt, H en ry H orn, directors.
Plaitsmouth
Stromsburg
The an n u al m eeting of th e stock
holders of th e P lattsm o u th State B ank
w as held to h e a r th e re p o rt of th e
officers and th e election of officers.
The stockholders of th e S trom sburg
B ank elected th e follow ing directors
for th e year: E. C. N ordlund, C. C.
AVestenius, Leo V. Carlson, C. E. C arl
son, Alex Scott, E. A. H edlund and
J. T. Stanton.
Follow ing th e stockholders m eeting
th e directors held th e ir organization
m eeting and elected th e follow ing offi
cers for th e year: E. C. N ordlund,
president; C. C. W estenius, vice p resi
dent; Leo V. Carlson, cashier; L averna
R ystrom , assista n t cashier; R aym ond
A nderson, assista n t cashier.
Madison
W h a t “C o o p e r a t i o n ’’
M eans
finance.
Officers and stockholders of th e
B ank of M adison held th e ir an n u al
m eeting and J. J. D eLay w as re-nam ed
presid en t of the in stitu tio n , R. H. Freudenburg, vice president; G. C. B enning,
cashier; an d Jay DeLay, assistan t cash
ier. D irectors are E. J. Moyer, O. V.
Scheer, and H. R. P alm ateer.
Live Stock National Bank service is designed to
Mahaska
assist you locally as well as to meet the requirements
The an n u al m eeting of th e stock
holders of th e M ahaska S tate B ank
w as held and th e follow ing officers
w ere re-elected for an o th er year: Clyde
Miller, president; Mrs. V. J. W all, vice
president; V ernon Coonrod, cashier;
and H a rry E m rick, assistan t cashier.
Mr. and Mrs. Clyde M iller, Mrs. V. J.
W all, V ernon Coonrod and George
M iller of W ashington, D. C., are th e
board of directors.
It is our constant endeavor to cooperate with local
banks in all branches of banking and live stock
of your items in Sioux City, Let us serve you in the
great Sioux City Area!
O F F IC E R S
C. L. Fredricksen, President
M. A. W ilson, V ice President
W . G. N elson, A ssista n t V ice P resident
W . C. Schenk, Cashier
L. W . R oss, A ssista n t Cashier
C. L. Adam s, A ssista n t Cashier
J. S. H aver, A ssista n t Cashier
D IR E C T O R S
C. R. M cK enna, Pres., Johnson B iscu it Co.
B. L. Sifford, Attorney, Sifford & W adden
G. F. Silknitter, President, Sioux City
Stock Yards Company
C. L. Fredricksen, President
M. A. W ilson , V ice President
H. C. B osw ell, Secretary-T reasurer,
W estern C ontracting Corporation
Pawnee City
The an n u al stockholders m eeting of
th e Citizens State B ank w as held last
m onth. A. H. W h erry w as re-elected
president; F ra n k A ikens, vice p resi
dent; J. A. B arr, cashier; Miss N ettie
H anon, assista n t cashier; Miss M ary
H unley, bookkeeper.
“T h e B a n k at the Y ards”
M em ber Federal D eposit In su ra n c e C orporation
L IV E S T O C K
N A TIO N A L
B
A
N
Bank Clerks In Demand
K
S I O U X C I T Y , IO W A
i f
N orthw estern B anker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
March 19^1
The C harles E. W alters Com pany
of Omaha, N ebraska, is experiencing
a heavy dem and for experienced b ank
clerks, sten o g rap h ers and tellers.
T hey have m ade m ore th a n 100 place
m ents since Ja n u a ry 1st. See th e ir
ad v ertisem en t on page 58 of th is
issue.
41
SOUTH
DAKOTA
F. F. P H IL L IP P I
President
Milbank
NEWS
In Hospital
Chas. W. C hristen, p resid en t of th e
F irs t S tate B ank, Roscoe, and a m em
b er of th e South D akota b an k in g com
m ission, h as been in th e N o rth w e st
ern H ospital in M inneapolis, rolling
aro u n d in a w heel chair, follow ing an
operation on his knee. T he o peration
w as e n tire ly successful, and by th is
w ritin g we presu m e he is a t home,
as he says, “in th e S unshine state,
for th e ir ’s no place like hom e.”
To Minneapolis
H. L. Sm ith, w ho h as been con
nected w ith th e N ational B ank of
South D akota in V erm illion for th e
p ast fifteen years, has been tra n s fe r
red to M inneapolis. Mr. S m ith w ill
spend a y e a r w ith th e cred it d e p a rt
m en t of th e F irs t B ank Stock Corpo
ratio n there.
Okaton
The a n n u al m eeting of th e stock
holders and th e sem ian n u al m eetin g
of th e board of directors of th e Okaton State B ank, Okaton, an office a t
M idland, South D akota, w as held re
cently.
The stockholders reelected th e fol
low ing directors: W. A. M cM illen of
C ham berlain, South D akota; T hom as
H ughes of San Diego, California; J. F.
E n g lan d of R apid City, South Dakota,
and Sophie H ughes and Miss H azel
H ughes of Okaton, South Dakota.
T he board of directors reelected th e
follow ing officers and em ployes: W.
A. McMillen, president; T h o m a s
H ughes, vice president; H azel H ughes,
cashier; T. M. Drew, a ssista n t cash
ier; V. L. F erguson, m an ag er of th e
M idlands, South D akota, b ranch,
H ilda C. R oghair, bookkeeper.
Sisseton
The a n n u a l m eeting of th e R oberts
County N ational B ank w as held re
cently. O. J. R aade of W h ite Oak, a
directo r of th e bank, w as n o t p re se n t
due to illness.
Officers reelected w ere: P resident,
J. L. Caldwell; vice p resid en t an d
GEORGE M. STARRING
Secretary-Treasurer
Huron
cashier, A. W. Powell; a ssistan t cash
iers, F. H. K ouba and M. L. A m bers;
directors, O. J. Raade, W hite Rock;
J. L. Caldwell, F. H. Kouba, A. W.
Pow ell and M arion Powell, Sisseton.
Dell Rapids, died at th e Dell R apids
hospital of a h e a rt ailm ent and com
plications. He had been in th e hos
p ital since N ovem ber 4.
Mr. Hegge had been affiliated w ith
banks in Dell R apids for 42 years.
Born J a n u a r'y 20*, 1876, he w as th e son
of Mr. and Mrs. S. 0. Hegge, pioneers
of E dison tow nship. He attended the
L u th e ra n N orm al School and the Sioux
Falls B usiness College in Sioux Falls
and in 1898 took a position as stenog
ra p h e r and clerk a t th e F irs t N ational
Bank. He later becam e cashier and
in 1926 joined th e S ecurity B ank w here
he rem ained u n til his illness and
death.
Kimball
The an n u al m eeting of th e stock
holders of th e B ank of K im ball w as
held w ith th e follow ing stockholders
Wessington Springs
in attendance: M. P lin Beebe, Lloyd
T he an n u al stockholders and di C ronholm and Ben Jones of Ipsw ich,
recto rs m eeting of th e F a rm e rs and L. M. L arsen of W essington Springs,
M erchants
B ank
of
W essington
Mrs. J. H. D rips of G ann V alley and
S prings w as held a t th e bank. The
R. A. Johnson of Kim ball. D irectors
officers w ere all reelected as follows: for th e com ing year w ere as follows:
N.
J. Thom pson, president; Max M. P lin Beebe and Lloyd Cronholm
H abicht, vice president; F. W. Bun- of Ipsw ich, L. M. L arsen of W essing
day, cashier; R ay S chm ierer an d
ton Springs, Mrs. J. H. D rips of Gann
B ruce Thom son, assista n t cashiers.
Valley, and R. A. Johnson of Kimball.
D irectors, N. J. Thom son, F. W. Bunday, M ax H abicht, George H. Sickler
Eureka
an d J. H. F arrin g to n .
The an n u al m eeting of th e stock
holders of th e E u re k a State B ank w as
W ilm ot
held w ith a dividend declared for all
T he F irs t N ational B ank w hich w as
stockholders.
recen tly changed to th e W ilm ot State
D irectors chosen for th e com ing
B ank reelected its officers a t th e a n y ear include: Iren e G. Olsen, A ndrew
n u al m eeting.
P resident, W illiam
Stoebner, E. H errboldt, E ugene Liedle,
Cam eron; vice president, C. M. StrasMrs. F. K. Mehlhaff, all of E ureka, and
ser; cashier, P aul J. C arstens; a ssistan t
R. B. W hite of H erreid. D irectly fol
cashier, J. M. Aasland; teller, A. L.
low ing th is session th e directors m et
C hristianson; directors, Nels Nelson,
and d u rin g th e business m eeting re
Jo h n C am eron an d C yrus Sample.
elected all officers of th e b ank to th e ir
posts. P resen t officers are: Iren e G.
Olsen, president; A ndrew Stoebner,
Herreid Office
vice president; E. H errboldt, cashier;
Cam pbell county and H erreid has
E ugene Liedle, a ssista n t cashier; and
a b an k again, and in a w holehearted
E a rl W alth, a ssistan t cashier.
display of appreciation, citizens of the
v icin ity deposited m ore th a n $15,000
in th e first four h o urs th e in stitu tio n
Beresford
w as open.
The an n u al m eeting of th e heads of
E.
F. H errboldt, cashier of the th e F irs t N ational B ank of B eresford
E u re k a S tate B ank of w hich th e H er w as held recently. All officers, direc
reid B ank is an office, said H erreid
tors, and em ployes w ere reelected. A
h ad been w ith o u t a b an k for eight or
dividend of 6 per cent w as also de
nine y ears and praised th e “w onder clared for 1940.
ful tu rn o u t” a t its opening.
T he directors are: J. J. DeLay, Jo h n
P erm ission for th e office w as
O. Stene, S. O. Steensland, T. A. P e te r
g ra n ted by S tate S u p erin ten d en t of son, and A. R. Olson.
B anks E rlin g Hougo. V erne Abeal,
The officers are: president, J. J. Dea ssista n t sup erin ten d en t, w as p resen t
Lay; vice president, S. O. Steensland;
for th e opening day. E ugene Liedle
and active vice president, A. R. Olson.
is m anager of th e H erreid bank.
In Best Condition
Dies in Dell Rapids
Oluf Hegge, 64, an em ploye of th e
N o rthw est S ecurity N ational B ank in
S u p erin ten d en t E rlin g H augo of th e
State B anking D epartm ent said South
D akota’s 124 state banks are in “th e
N orthw estern B anker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
March 19^1
42
jA l
BANK, like other institu
tions and organizations engaged
in public service, reflects the
character of those whom it
serves and of those who serve it.
This Bank numbers among its
clientele and correspondents
the leading financial institu
tions here and abroad. Whether
located in small town or large
city, each contributes something
of its own strength and facili
ties to the mutual interest of
all.
. . . THE . . .
P H IL A D E L P H IA
N A T I O N A L
B A N K
ORGANIZED 1803
PHILADELPHIA, PA.
best condition since post w orld w a r
days and all show ed a profit in 1940.”
The state in stitu tio n s have show ed
a steady gain in resources, su rplus,
undivided profits, deposits, and loans
and discounts since D ecem ber 31, 1938,
he said in a com parative ab stract of
conditions on D ecem ber 31, 1940.
R esources have increased from $38,470,000 in 1938 to $49,211,000, or m ore
th a n 25 per cent, and total deposits
from $32,636,000 to $42,847,000. In d i
cating m ore m oney is being p u t to
w ork, H augo said, loans and discounts
have gained from $14,818,000 in 1938
to $21,535,000 at the close of th e last
year.
W ith the opening of a branch office
of th e E u rek a State B ank at H erreid,
th ere are now 21 b ank offices, com
pared w ith seven tw o y ears ago.
Since the rep o rt w as obtained De
cem ber 31, tw o national banks have
become state banks, one th ro u g h con
version and the o th er by consolidation.
Parker
The an n u al m eeting of th e P a rk e r
State B ank w as held recen tly w ith M.
Plin Beebe of Ipsw ich th ere for th e
m eeting.
At the annual m eeting officers and
d 'recto rs w ere elected as follows:
Alan Bogue, president; M. P lin
Beebe, vice president; C. F. H arm on,
vice president; V. B. Clikem an, cash
ier; Grace G underson, assistan t cash
ier; E. C. Beebe, director.
Lead
Jo h n H irning, of Lead, w as elected
presid en t of th e M iners’ and M erch
a n t’s Savings B ank of Lead a t th e
annual organization of th e board of
directors follow ing th e an n u al m eet
ing of stockholders. O ther officers for
the ensuing y ear are W illiam K ruse,
Lead, vice president; C. F. Schadel,
Lead, vice president; C harles C. Pendo,
Lead, cashier, and R alph H. B ro th ers
and W allace F urze, Lead, a ssista n t
cashiers.
At the stockholders m eeting th e fol
low ing board of directors for th e com
ing y ear w as elected: W illiam K ruse,
Jo h n T rew eek, Jo h n C. Finola, C. F.
Schadel and Jo h n H irning, all of Lead.
Centerville
Capital, Surplus and Undivided Profits
$44,000,000
M e m b er of F ederal D eposit Insurance C orporation
N orthw estern B anker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
March 19 'll
The an n u al business m eeting of th e
B ank of C enterville w as held recently,
according to Jam es S. Thom son, p resi
den t of the bank.
P resen t officers are Jas. S. Thom son,
president; Jo h n N. Thom son, cashier;
Elm ore L. Johnson and A ltrude N el
son, a ssistan t cashiers.
D irectors are Jas. S. Thom son, Jo h n
N. Thom son, Donald M cM urchie, A. O.
N. Johnson and M aurice Dwyer.
43
vau lt in the basem ent and a m odern
new door will be installed in the v au lt
in th e bank proper. The old v au lt w ill
be discarded.
The new v au lt w ill provide space for
500 safety deposit boxes, m ore th a n
tw ice th e num ber now available.
MINNESOTA
NEWS
Heads Clearing House
W IL L IA M D U N C A N , J r .
S e c r e ta r y
M in n e a p o lis
K . O. S A T T R E
P r e s id e n t
B lu e E a r t h
New Facilities
Cashier Resigns
New, m odern b an k facilities are
being in stalled in th e F irs t State B ank
in G rand M eadow to im prove th e ap
pearance and aid in speeding up serv
ice.
The burglar-proof steel cages orig
inally in stalled in th e b an k w h en it
opened tw o y ears ago have been re
m oved and new m odern low cages and
co u n ters are being built.
Top rails and fram es are of a ttra c
tiv e bronze.
George Hudy, w ho recently resigned
his position as cashier of th e N o rth
w estern State B ank at O rtonville, has
joined th e staff of th e N ational Citi
zens B ank of M ankato. The O rtonville
Bank, like th e N ational Citizens, is
affiliated w ith th e N orthw est Bancorporation.
Bank Purchased
Dr. J. R. M anley and son, J. R. Manley, D uluth, have purch ased th e con
tro llin g in te re st in th e F irs t N ational
B ank of E ly from th e R. M.: Sellwood
estate. Dr. M anley has been nam ed
p resid en t of th e E ly bank, and his son,
vice president.
Appleton
A t th e a n n u al m eeting of th e stock
holders of th e F a rm e rs and M erchants
State B an k of A ppleton all p re se n t
officers, directors an d em ployes of th e
b an k w ere reelected for th e ensuing
year.
E. J. F le tc h e r is p resident; O. B.
Carlson, vice p resident; A. E. A rntzen,
cashier; Geo. E h ren b erg , director; Miss
V alborg Strom and R obert Pederson,
a ssista n t cashiers; Miss Louise Reed,
teller; R alph Schm idt, bookkeeper, and
Miss H elen C hristenson, stenographer.
The bank, according to th e last p u b
lished called rep o rt, had total footings
on D ecem ber 31, 1940, of $510,611.06.
D eposits totaled $467,479.59.
Newport
T he F a rm e rs T erm in al S tate Bank,
N ew port, held its a n n u al m eeting re
cently.
T. F. S p reiter w as reelected p resi
dent; T. H. M attim ore, vice p resid en t
and cashier; and Je a n e tte M attim ore,
a ssista n t cashier.
A. H. Bahe and Roy E. B eberm eyer
w ere reelected to th e board of d irec
tors. T he b an k paid an o th e r 10 p er
cent dividend to th e stockholders.
Cashier at Benson
The F irs t N ational B ank of H eron
L ake rep o rts th a t M errill O. Nelson
has resigned as cashier and started on
a sim ilar job at th e F irs t State B ank
of Benson. Mr. Nelson sta rte d his
b an king career at th e N orth Side State
B ank and th e F reeb o rn County N a
tional B ank of A lbert Lea before m ov
ing to H eron Lake in Septem ber, 1935.
Remodeled
The in terio r of th e B lackduck State
B ank p resen ts a decided change in
ap p earance since th e fixtures have
been rem odeled along a m ore m odern
line. The old fixtures have been cut
dow n in height and th e old grill w ork
rem oved. The changes are m ore in
keeping w ith th e m odern tre n d in
b an king fixtures.
New Interior
A new tw o-story v au lt w ill be in
stalled in th e N ational Citizens Bank,
Canby, and th e in terio r com pletely re
modeled, according to plans of th e di
rectors.
The plans for th e rem odeling of th e
in terio r to provide a m ore convenient
lobby for custom ers and larg er and
b e tter lighted w orking space for em
ployes are as y et ten ta tiv e b u t it’s
planned to extend th e b an k to include
th e space now occupied by th e city
re st room.
I t has definitely been decided to
in stall th e new v au lt and one of the
latest type, fire-proof and burglarproof, has already been purchased. The
tw o-story vault, bu ilt of concrete and
steel sheets, w ill occupy space in th e
b asem ent and first floor. T he door of
th e p resen t vault w ill be used for th e
R. L. Griggs, N o rth ern N ational
B ank president, has been elected head
of th e D uluth Clearing H ouse Associa
tion, succeeding W. D. W yard.
O ther officers nam ed a t th e an n u al
m eeting in th e F irs t and A m erican
N ational B ank board room include H.
S. McGregor, vice president; W. F.
McLean, second vice president; Dr. W.
J. E klund, secretary -treasu rer, and S.
T. S train, m anager.
T he association is com prised of re p
resen tativ es of D uluth banks.
Remodeled
The F irst N ational Bank, New Ulm,
is being rem odeled. M odern wood
w ork has been placed in th e m ain p a rt
of th e building, and th e re a r portion
also is being com pletely renovated and
rem odeled.
Capital Increased
An increase of $25,000 in the capital
stock of th e Olm sted C ounty B ank &
T ru st Company, R ochester, w as voted
at a special m eeting of the stockhold
ers.
The increase voted w as from $75,000
to $100,000.
B ank officials said th e increase w as
necessitated by th e rap id grow th of
th e b ank du rin g th e p ast several years.
Since 1934, th e deposits of th e b ank
have increased from around $400,000
to m ore th a n tw o and one-half m illion
dollars, an official pointed out. On De
cem ber 31, 1940, th e date of th e last
b ank call, th e deposits stood a t $2,560,000.
Duluth
All officers of th e N o rth w estern
S tate B ank and th e D uluth M orris P lan
Com pany w ere re-elected.
T hey are A. C. A rm strong, p resi
dent; L. W. B. Hegg, G. J. M aier and
H erb ert W arren, vice presidents; P.
C. P ichetti, cashier; D. E. Snyder and
I. M. Campbell, a ssistan t cashiers, and
W. F. A rndt, Mr. A rm strong, Mr. Hegg,
G erald Howze, R. C. Mayall, F. Rodney
P aine and Mr. W arren, directors.
First National, Halstad
T he new board of directors are W al
te r Johnson, of Red L ake Falls, p resi
dent; Jo h n J. Asiala, of D uluth, vice
president; Geo. J. Johnson, cashier;
Oscar Schankey, of Middle R iver, and
N orthw estern B anker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
March 1941
44
• M I N N
A. W. H avela, of D uluth, directors.
Lucille B ueling w as appointed assis
ta n t cashier.
Fergus Falls
B oth N ational banks of F e rg u s F alls
held th e ir a n n u al election of officers
w ith th e follow ing resu lts:
F e rg u s F alls N ational B ank—J . S.
Ulland, ch airm an of th e board; O. U.
H abberstad, p resident; N. F. Field,
V. C. Jensen, J. F. Shay, H. G. C.
Jensen, J. F. Shay, H. G. Dahl, vice
presidents; E ugene C. Beim er, cashier;
Theo. Fossen, A rth u r M iller an d M.
E. Giese, a ssista n t cashiers; F. E.
Hodgson, H. E. W ebber, directors; E.
ESOTA
N E W S *
M. A nderson, tru s t officer.
No changes w ere m ade a t th e F irs t
N ational Bank, th e follow ing being re
elected:
E lm er E. Adams, president; Sam uel
P. Adams, vice president; R. E. L in
coln, cashier; H. E. Swenson, assistan t
cashier and vice president; Jo h n J.
Svenneby, a ssistan t cashier; H enry
Jenson, teller; M arjorie Hill, ladies’
teller.
Fairfax
At th e an n u al m eeting of th e F irst
N ational B ank of F airfax, all directors
and officers w ere re-elected. The direc
to rs are: Mrs. E. F. Sell, Mrs. G ertrude
O. Fiss, A. G. Briese, G. A. Rieke, H er
m an Schm echel, H. F. D ickm eyer and
A lbert M undahl.
Officers re-elected
w ere: Mrs. E. F. Sell, president; A. G.
Briese, vice president; Mrs. G ertrude
O. Fiss, cashier and C. J. B raun, as
sista n t cashier.
Nashwauk
E rick Jo h n so n of Bovey w as re
elected p resid en t of th e A m erican
N ational Bank.
O ther officers re
nam ed are as follows:
Dr. I. H. K iesling, vice president;
Joseph C. Malley, cashier; Mr. Jo h n
son, Dr. K iesling, A rvid M attila, Jo h n
P. R aattam a and Mr. Malley, directors.
Mora
A b o v e : U n i v e r s a l " Z " 2 - 4 r o w 2 -3 p lo w t r a c
t o r a n d H a r v e s to r " 6 9 " — o n e m a n o p e r a t io n .
T h e M ig h ty M a s te rs of a ll C r o p s .
Realizing the value and importance of
modern, efficient farm tools, bankers have
been a potent force in the promotion of
prosperity of rural communities. In offer
ing a helping hand to deserving farmers
who lack the ready cash for buying needed
tools and power, bankers have helped
those farmers to become better customers
for all business places in the community.
This year bankers and MM dealers will
again be cooperating to bring more MM
tractors and machines to deserving farm
ers in their communities. In doing so,
they'll be performing a service not only to
the farmers themselves but to the com
munity as a whole, and indirectly the
whole nation.
Northfield
A b o v e : T h e H a r v e s to r 1 2 fo o t — o r i g i n a l l i g h t
w e i g h t, b i g c a p a c i t y c o m b i n e f o r a ll c r o p s —
w o r l d 's l a r g e s t s e l l e r i n t h a t s iz e .
M M T r a c t o r s a n d m a c h i n e s w ill th is y e a r b r i n g to
m o re fa rm e rs n e w d e p e n d a b ility in p e rfo rm a n c e
a n d n e w e c o n o m y i n o p e r a t io n .
B e lo w : " J " H a r v e s to r — o f fe r e d in 6 a n d 8 fo o t
s iz e s — o n e o r tw o m a n o p e r a t io n .
Minneapolis -M oline
POWER
IMPLEMENT
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
March 19bt
T he an n u al stockholders m eeting of
th e K anabec S tate B ank w as held w ith
a large attendance from its m ore th a n
70 stockholders. T he 20th consecutive
an n u al dividend w as paid and th e fol
low ing directors w ere re-elected: Jo h n
G. D ahlm an, E lm er W. Gotfredson,
H arold W. H anson, K. E. M cllhargey,
F ra n k P. Pow ers, A rt C. Rentz.
Im m ediately follow ing th e stock
holders m eeting th e follow ing officers
w ere elected: F ra n k P. Pow ers, p resi
dent; K. E. M cllhargey, vice p resi
dent; R. P. Campbell, vice presid en t
and m anager of insu ran ce d epartm ent;
H. R. Ness, cashier; B yron A nderson,
a ssistan t cashier.
COMPANY
M I N N E A P O L I S
M I N N E S O T A , U. S - A.
T he th re e N orthfield banks have
held th e ir an n u al m eetings, and direc
tors w ere re-elected in every instance.
A t th e S tate B ank of N orthfield,
Louis P eavey is presid en t of th e instituion; A. O. N etland, vice president;
A rth u r M. P eterson, cashier; A rth u r
N. P ersons, a ssistan t cashier, an d Miss
C harlotte N etland, bookkeeper.
T he F irs t N ational re-elected direc
tors as follows: J. D. N utting, Alex
MacKay, E. H. W atson, Miss L au ra
N utting, and H. O. Dilley. The p resen t
officers are: J. D. N utting, president;
Alex MacKay, vice president; H. O.
Dilley, cashier; E. H. W atson, L. S.
Marko, Jr., and Robt. F. Shum w ay,
a ssistan t cashiers. O ther m em bers of
the staff are Jo h n O. Schum m and Miss
L o rrain e Olson, bookkeepers.
T he directors and officers of th e
N orthfield N ational B ank & T ru st Com
pany are: A. F. Meyer, president; Dr.
Jos. Moses, vice president; P aul M.
Odegaard, cashier; G. R. Cam pbell and
F. A. DeMann. C. W. H olden and
S tanley A. Lew ison are a ssistan t cash
iers, th e form er tak in g th e place of
L eonard P. P eterso n last sum m er.
45
T w i n C it y N e w s
p I R S T BA N K STOCK CORPORA| TION, its affiliated b an k s and active
com panies had n e t o p eratin g earnings
of $2,979,090 in 1940, eq u iv alen t to
$1.02 p er sh are on th e 2,920,532 sh ares
of stock o u tstan d in g a t th e end of the
year, according to th e b an k holding
com pany’s tw e lfth a n n u al report.
T his com pares w ith 1939 earnings
eq u iv alen t to 93.95 cents a share.
Profits on sale of bonds or recoveries
are n o t included.
Capita], su rp lu s an d undivided
profits of b an k affiliates w ere $43,237,977 on Dec. 31, an in crease of
$425,131 a fte r dividends of $2,018,903
w ere paid to F irs t B ank Stock Cor
po ratio n and m in o rity in terests.
T he b anks had n e t deposits of $440,981,031, an in crease of $27,475,032.
Com bined loans an d discounts w ere
$141,066,405, up $18,522,253 for th e
year.
Stocks of affiliates, to g eth er w ith $1,717,579 of o th er assets ow ned directly
by th e holding com pany, have a book
value of $45,260,533, th e re p o rt stated.
T his is eq u iv alen t to $15.49 p er share.
D ividends in 1940 to taled $1,757,447, at
th e ra te of 60 cents p er share.
F irs t N ational B ank and T ru s t Com
pany of M inneapolis an d fo u r oth er
M inneapolis b an k affiliates h ad net
o p eratin g earn in g s for th e y e a r of
$1,149,706.
F irs t N ational B ank of St. P au l and
four o th er St. P au l b an k affiliates had
n e t o p eratin g earn in g s of $1,057,438.
O ther b an k affiliates, consisting of 67
ban k s and b ran ch es located in the
N in th F ed eral R eserve D istrict o u t
side of th e T w in Cities, rep o rted net
o p eratin g earn in g s of $945,272.
F ir st B an cred it Corporation, an af
filiate engaged on a nation-w ide basis
in th e in sta llm e n t financing of hom e
m odernization, fire an d casu alty in
su ran ce prem ium s, and electric and
gas appliances, at th e end of 1940 w as
By James M. Sutherland
Special Correspondent
servicing in stallm en t paper held by
affiliated banks rep resen tin g a n et in
v estm en t to th em of $33,156,648, an in
crease of $2,359,157 for th e year.
F irs t B ank Stock C orporation at the
close of 1940 had as affiliates 73 banks
an d tru s t com panies operating 81 of
fices in 69 com m unities in th e N inth
D istrict.
M inneapolis C hapter, A m erican In
stitu te of B anking, is conducting 8w eek courses in b anking round tables
at th e YMCA and YWCA. T he chap
te r ’s public education com m ittee is in
charge. G enieve M. N ev in of N o rth
w est B ancorporation is com m ittee
chairm an, John P. K n u tson of Mid
land N ational B ank & T ru st Co. sub
com m ittee ch airm an in charge of gen
eral arrangem ents.
C ontrolling in te re st in the M inne
apolis in v estm en t house of Bigelow,
W ebb & Co. has been purchased by
W ilfred R. F rank, St. Paul, w ho has
been elected ch airm an of th e board.
John MeD. W ebb continues as presi
d en t w hile E lm er J. P earson, form erly
of th e sales staff, is vice presidenttre a su rer. P au l Gold is secretary,
w hile John S ten n es of th e sales de
p a rtm e n t is a new director.
Mr. Chaney also w as m ade a m em
ber of th e executive com m ittee. K en
neth R. Johnson of F irs t N ational
w as m ade an a ssistan t treasu rer.
G. P alm er J affray of Piper, Jaffray
& Hopwood, M inneapolis, is new p resi
dent of th e M inikahda club. Clarence
E. H ill, vice presid en t of N o rth w est
ern N ational B ank & T ru st Co., w as
elected treasu rer.
Tw in City and n o rth w est b ankers
took leading roles in th e regional con
ference on defense held in M inneapolis
u n d er auspices of the U nited States
Cham ber of Commerce, M inneapolis
Civic & Commerce A ssociation and St.
P aul A ssociation of Commerce.
L ym an E. W akefield, p resid en t of
F irs t N ational B ank & T ru st Co.,
M inneapolis, presided a t th e open
forum on federal fiscal policy, taxa-
JAMIESON
&
CO MPA NY
i
Stocks
Bonds
Grain
q
Com m odity Brokers
•
Members
N ew York Stock Exchange
i?
and Other Principal E xchanges
A. E. W ilson, vice p resident and
I
•
ch airm an of th e tru s t com m ittee of
F irs t N ational B ank & T ru st Co., and
Clarence R. Chaney, vice p resid en t and
ch airm an of th e tru s t com m ittee of
N o rth w estern N ational B ank & T ru st
Co., have been elected tru stees of the
M inneapolis F oundation, a non-profit
organization w hich m anages bequests
for charitable purposes.
’
ST. PAUL — MINNEAPOLIS
•
G overnm ent — M unicipal
Corporation Bonds
•
CHARLES C. RIEGER
M anager
Bond Department
M inneapolis — Atlantic 8235
__ _____________________________ ._______
N orthw estern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Cotton
Butter
Eggs
March Í941
46
• M I N N E S O T A
tion and finance. H. C. T im berlake,
m an ag er of th e in d u stria l coordination
d ep artm en t of M inneapolis F ed eral
R eserve B ank, w as one of th e speak
ers, w hile num ero u s o th er ban k ers
took an active p a rt in th e program
and discussions.
ness office of th e
R ochester, Minn.
Mayo
NEWS*
Clinic at
Pani W. Loudon of Piper, Jaffray &
Hopwood, M inneapolis, w as one of the
w itnesses at an SEC h earin g and te sti
fied against th e proposal to m ake com
p ulsory com petitive bidding on issues
of $1,000,000 or more.
D onald H. B row n, secretary of
W ells Dickey Co., M inneapolis, and
connected w ith th e in v estm en t house
since 1914, resigned effective Feb. 15
to becom e associated w ith th e b u si
T hree standing com m ittees for the
N ational A ssociation of Securities
D ealers in D sitrict No. 4, com prising
!!i!llll!llll!ll!lili!l!lfllil!i!l!illll!l!l!iillllll!llllllllll!lll!l
M innesota, M ontana, N orth and South
Dakota, have been appointed.
T h eir chairm en are: N orm an N elson,
Piper, Jaffray and Hopwood, business
conduct com m ittee; M errill M. Cohen
of J. M. D ain and Company, q u o ta
tions, and A lm on A. Greenm ail of
G reenm an & Company, uniform p rac
tice. Mr. N elson also is d istrict ch air
man.
W ilbur F. D ecker, 84, re tire d M inne
apolis banker, realto r and civic leader,
died Feb. 6. He w as one of th e in
corporators of th e old St. A nthony
F alls B ank and served as its vice p resi
dent for 20 years.
A. H. K ennedy, vice p resid en t of
F irs t B ank Stock C orporation, w as
elected presid en t a t th e an n u al m eet
ing of th e board of directors, w hile
C. T. Jaffray, president, w as nam ed
ch airm an of th e board.
Mr. Jaffray, w ho is also ch airm an of
th e Soo L ine Railroad, w as ch airm an
of F irs t B ank from its organization
in 1929 u n til 1931, w hen he becam e
president. He is a form er vice p resi
dent of F irs t N ational B ank & T ru st
Co.
Mr. K ennedy came to F irs t B ank
from th e F irs t N ational B ank of St.
P aul in 1931. He had been vice p resi
den t of th e St. P aul bank, b u t left
th a t post to becom e tre a su re r of th e
b ank holding com pany. All directors
and o th er officers w ere re-elected
D irectors declared a dividend of 30
cents a share, payable A pril 1 to stock
holders of record M arch 14.
V iew of the Transit Division
Continental I llinois
N ational Bank
and T rust Company
of C hicago
☆
Member Federal Deposit Insurance Corporation
N orthw estern B anker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
March 19H
A definite policy of expanding th e
lending facilities of affiliated ban k s of
N o rthw est B ancorporation w as chiefly
responsible for th e increased earnings
show n last year, J. Cameron T hom son,
president, told stockholders a t th e an
nual m eeting.
He and all o th er officers and direc
to rs w ere re-elected a t th e stock
h o lders’ and subsequent d irecto rs’
m eeting.
In th e face of a $23,500,000 rise in
deposit volum e, earn in g assets held at
74.2 per cent of consolidated deposits,
he said. In 1939 th ey w ere 75 per
cent of deposits.
G. A. Olbrich has sold his in terests
in th e Colum bia H eights S tate B ank
and resigned as a vice p resid en t and
director, he has announced. Mr.
O lbrich took an active p a rt in o rgan
izing th e ban k several y ears ago, b u t
w as forced by p ressu re of o th er busi
ness to relin q u ish th e position.
47
NORTH
f
M ARTIN AAS
President
New Rockford
DAKOTA
NEWS
C. C. WATTAM
Secretary
Fargo
stock from $25,000 to $35,000 and added
$5,000 to its su rp lu s fund b ringing th e
la tte r to $10',000 and increasing to $45,000 th e capital stru c tu re of th e in sti
tution.
R enam ed to th e d irectorate w ere W.
A. Lilyquist, W. R. Sandager, Jacob
W alters, Jo h n Challey and K nute
Ringdahl. Officers w ere elected to th e ir
positions and th e staff rem ains w ith
L ilyquist president; Jacob W alters,
vice president; Sandager, cashier; Miss
M arie M organ, a ssistan t cashier; Paul
Sandanger, teller; E ileen Johnson and
Gordon W eber, bookkeepers.
Minot
Correction
Devils Lake
C larence H. P a rk e r of M inot w as re
elected p resid en t of th e A m erican
S tate B ank a t th e a n n u al stockholders
m eeting.
C. P. K jelstru p , fo rm erly vice p re si
den t and cashier, w as nam ed executive
vice p re sid e n t and T. A. Solheim, fo r
m erly a ssista n t cashier, becam e cash
ier. C harles C. M orton w as elevated to
a ssista n t cashier. He h ad been a teller.
Roy L. A ney of M inot w as nam ed a
new d irecto r succeeding W. R. Bond,
also of Minot. O ther m em bers of th e
board are P a rk e r, K jelstru p , J. L.
Sm ith, of M inot, and H arold B. N elson
of Rugby.
All directors and officers of the
U nion N ational B ank in M inot w ere
reelected.
H. M. G rant, presid en t; C. H. Zehrin g er, vice presid en t; J. S. W estlake,
cashier; A. R. F reeh , a ssista n t cashier,
w ere renam ed, as w ere J. N. Ellison,
G. D. Colcord, A ndrew B alerud, and
E. A. Shirley, directors.
G rant and Z eh rin g er w ere also re
elected as directors.
In listing year end figures for N orth
D akota banks in th e F e b ru a ry issue of
th e N o r t h w e s t e r n B a n k e r , an erro r
w as m ade in th e deposit figures for th e
F irs t N ational B ank of Valley City.
The deposits as published w ere show n
as $301,711. T his figure is in erro r
and should have read $787,159, w hich
are the total tim e and dem and deposits
of this bank.
Our a tten tio n w as called to th is e rro r
by J. T. Sanger, cashier of th e in stitu
tion, and we are v ery h appy to m ake
correction as above.
All directors and officers of two
Devils Lake banks w ere reelected.
Officers reelected a t th e R am sey
County N ational B ank w ere B landing
F isher, president; S. K. F isher, vice
president; A. W. Omdahl, cashier; C. I.
H odgson, W. G. E lm slie and F. C. Hoghaug, a ssistan t cashiers; and B landing
F isher, T. A. H aslam , S. K. Fisher,
Clyde Duffy and A. W. Omdahl, direc
tors.
F irs t N ational B ank officers re
nam ed w ere R. C. Collinson, president;
W endell Haley, cashier; E a rl L. Duell
and H eerm an Naugle, assistan t cash
iers; R. C. Collinson, W endell Haley,
E. J. Baird, E dna H aley and Mack V.
T raynor, directors.
Napoleon
George L aney w as reelected p re si
d e n t of th e Stock G row ers B an k in
N apoleon at a board of directo rs m eet
ing. F. B. H eath is vice p resid en t and
W. D. H eupel, cashier.
The b an k en ters its 41st y e a r w ith
a decided g ro w th in business over a
y e a r ago. Footings D ecem ber 31st
w ere $318,000, com pared w ith $221,000
th e preceding year.
Rolla
All officers of th e R olette S tate B ank
w ere reelected a t a m eeting of th e
board of d irecto rs in Rolla. F. A. Foley
w as reelected president, H. R. R endahl
of Cando, vice president, and Oscar
H jelt of Rolla, cashier. D irectors
elected by th e stockholders w ere A. O.
Aune, p resid en t of th e N o rth w estern
B ank of Langdon, H. R. R endahl, p resi
den t of th e F irs t State B ank of Cando
an d F. A. F oley of Rolla.
To Lidgerwood
Mel Lindeblad has gone to L idger
wood, N orth Dakota, w here he has
becom e cashier of th e F irs t N ational
B ank. F o r n early seven years, Mr.
L indeblad w as connected w ith th e Se
c u rity N ational B ank in W illm ar. The
cashiership of th e N orth D akota in sti
tu tio n is a prom otion.
The b an k of w hich he is now th e
cashier is an affiliate of th e F irs t B ank
Stock Corporation.
Munich
E xp ressin g com plete satisfaction
w ith th e p ast y e a r’s business, directors
of th e F irs t S tate B ank of M unich, in
a n n u al session recently, accepted th e
re p o rt of L. E. C allahan and reelected
all of th e b a n k ’s officers and retain ed
all em ployees in th e ir p re se n t posi
tions.
Mr. C allahan continues as presid en t
and active m anager of th e bank. Y. A.
N elson is again vice presid en t and
m anager of th e S tark w eath er ex
change operated by th e bank. Jo h n J.
H illm an is again cashier. The three,
w ith Soren Iverson and I. H. Iverson,
are directors of the bank.
Lisbon
S tren g th en in g its financial position
and enlarging ability to serve borrow
ers in th is te rrito ry th e F arm ers State
B ank at Lisbon increased its capital
Grand Forks
All directors and officers of th ree
G reater G rand F o rk s banks w ere re
elected.
F irs t N ational Bank, G rand F orks:
R. D. Campbell, G. O. Colborn, C. J.
M urphy, M. W. M urray, F red R. Orth,
W. R. V anderhoef and C arth er Jackson, directors. Campbell, ch airm an of
th e board; Orth, president; M urray,
vice president; Jackson, cashier and
tru s t officer; H arold S. Pond, M artin
Lystad, Oscar N orby and A. M. Lornmen, a ssistan t cashiers.
Red R iver N ational Bank, G rand
F o rks: A. G. B jerken, 0. B. B urtness,
E. F. Chandler, F. C. G ustafsson,
H en ry Holt, J. E. M acLean, W. H.
W itherstine, Jo h n L. R yan and Don
E. W hitm an, directors; B jerken, p resi
dent; G ustafsson, vice president; D.
W. W estbee, cashier; A. M. Spencer,
a ssistan t cashier.
M innesota N ational Bank, E a st
G rand F orks; J. B. Bingham , E dw ard
Deverell, H. G. Giese, A .0. Rudh,
B jerken and H. M. MacKenzie. B jer
ken, president; Giese, vice president;
M acKenzie, cashier; E. J. N ehring,
a ssistan t cashier.
Stockholders elected directors and
th e new boards nam ed officers for th e
ensuing year.
N orthw estern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
March 194Î
48
M O N T A N A NEWS
L av ato ry and cloak room is also p ro
vided. A supply room and a large
storage v au lt is provided in th e base
m ent.
G reat Falls
E T H E L W. W ALKER
Secretary-Treasurer
Helena
R . D. M OUNTAIN
President
Conrad
H ardin, directors chosen w ere J. J.
Ping, H. G. W ells, O. E. A nderson, Carl
C harles D. Conrad, 58, p resid en t of
E. Bow m an and Cornelius Roush. F ol
th e Conrad N ational B ank in K alis
low ing th e election th e directors
pell since 1920 and a son of th e late
nam ed as officers: Ping, president;
pioneer, C. E. Conrad, died at his hom e
W ells and Roush, vice presidents; A n
afte r an illness of a year.
derson, cashier, and Bowm an, assist
B orn in F o rt B enton Septem ber 29,
a n t cashier.
1882, C onrad cam e to K alispell w ith
his p aren ts w hen he w as eight years
Chinook
old.
He first becam e affiliated w ith th e
No change w as m ade in directorates
ban k in g en terp rise of his fa th e r in or in officers by th e F a rm e rs N ational
1906.
B ank, th e F irs t S tate B ank or th e Milk
R iver Coal Co. at an n u al m eetings in
Chinook.
Ronan
F a rm e rs N ational directors are
D irectors of th e R onan S tate B ank
m et in a n n u al session recently. H. R. C hris D. Miller, Max P. K uhr, H. B.
R esn er w as prom oted from th e posi Brooks, Jam es Griffin and P. B. McClintock. Officers are Chris D. Miller,
tion of a ssista n t cashier to cashier in
th e only change in th e personnel. L. president; H. B. Brooks, vice president;
E. B unge is p resident; H. E. Olsson, P. B. McClintock, cashier; and L. C.
vice president. The directors are Mr. Stevens, a ssistan t cashier.
Bunge, Mr. Olsson, B. O. S hennum and
T he F irs t S tate reelected W alter
A. M. Sterling. Mr. R esner tak es th e
B row n as president; R. L. Ross, cash
place of Mr. Paige on th e board of di ier and vice president; R. L. Samson,
rectors.
a ssistan t cashier. D irectors are W alter
Brow n, H elen J. B row n, Jo h n W.
A
rcher, W illiam E. Rae and R. L. Ross.
Yellowstone Banks
The Milk R iver Coal Co. reelected
All officers and directors of th e Yel
J.
H. E v ers of Shonkin, president;
low stone b an k s at L au rel and Colum
George M undt, Lloyd, vice president;
bus w ere reelected. The stockholders
and P. B. McClintock, secretary -treas
elected th e directors and th e d irectors
u rer. D irectors are Max P. K uhr,
elected th e officers.
B.
M. H a rris is p resid en t and J. W. George M undt, J. H. E vers, P. B. Mc
Clintock and H. A. K uhr.
C orw in is vice p resid en t of th e tw o
Dies in Kalispell
banks. A t L au rel B. M eyer H a rris is
cashier; J. W. F ry , a ssista n t cashier,
and G. H. Jacobus, board m em ber. At
Colum bus L. J. W allace is cashier; B.
M eyer H arris, a ssista n t cashier, and
M. E. Slayton, board m em ber. Bob
W estover, Jr., is a ssista n t cashier at
L aurel and I. M. Black and R. L. Duba
are a ssista n t cashiers a t Columbus.
Duba has been w ith th e Colum bus
b an k since last Septem ber w hen th e
assets of th e S tillw ater N ational B ank
w ere ta k e n over by th e C olum bus Yel
lowstone.
Hardin
A t th e an n u al m eeting of th e stock
holders of th e F irs t N ational B ank of
N orthw estern B anker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
March 1941
New Building
T he R onan S tate B ank has moved
to its new building.
The building is of steel reinforced
concrete, 32 feet by 58 feet, m odern in
every detail. It is air conditioned. The
east w indow s are of glass brick, w hile
th e large w indow s a t th e fro n t are of
blue plate glass. Glass bricks w ere
used in th e w indow s at th e sides and
over th e door, w hich is blue plate glass
panel.
A large v au lt on th e m ain floor p ro
vides am ple space for th e safety de
posit boxes, safe and b ank records.
The d irecto rs’ conference room is lo
cated at th e back of th e large lobby.
All th ree banks of G reat F alls held
th e ir an n u al m eetings.
Stockholders of th e F irs t N ational
elected Roy H. G lover as director, to
succeed I. B. A rm strong. O ther direc
tors, all re-elected, are Sam S tephen
son, chairm an; W. H. H oover, E. O.
Jen k in s, E. F. Galt, A lbert E. W iggin
and Jo h n E. Dawson.
Added to th e list of officers by the
new board w ere tw o a ssistan t cashiers,
George W. Teel and B a rre tt D. Collier.
O ther officers, all re-elected, are: p resi
dent, E. O. Jenkins; vice president, E.
F. Galt; cashier, L. F. C urry; assistan t
cashiers, A. R. Moore and G. R. Straiton.
All directors and officers of th e G reat
F alls N ational B ank w ere re-elected as
follows:
D irectors: I. W. Church, chairm an;
Lee M. Ford, D. J. D undas, F. J. Gies,
L. E. Taylor, F red G. B irch and Robb
R. W illiam s.
Officers: P resident, Lee M. Ford;
vice president, D. J. D undas; cashier,
Robb R. W illiam s; a ssistan t cashiers,
L. J. Robin and F. E. Bower.
All directors of th e M ontana B ank
& T ru st Co. w ere re-elected as follows:
H. H. Stanley, R. F. Duggan, F. L.
W oehner, J. G. G raham , F. C. B arribal,
C. J. T h o m so n and L. R. Fousek.
Billings
C ontinued grow th and satisfactory
earnings w ere rep o rted by B illings’
th re e banks a t an n u al stockholders
m eetings.
M idland N ational B ank officers w ho
w ill serve d u rin g 1941 are: E. T. McCanna, president; J. B. A rnold and F.
T. M errill, vice presidents; A. R. H am
m er, cashier; E. P. F rizelle and F. S.
W ebb, a ssistan t cashiers; M. A. Brown,
a ssistan t tru s t officer, and R. E. H unt,
auditor.
M ontana N ational B ank stockhold
ers renam ed H. E. K insley, A. H.
M arble, A. R. M cDerm ott, F. N. Sauer
and J. E. Vogel as directors. The
board th e n re-elected A. H. M arble
president, M cD erm ott and F. W.
M arble, vice presidents; Sauer, cash
ier; Vogel and K insley, assistan t
cashiers.
S ecurity T ru st & Savings B ank offi
cers are W. E. W aldron, president; W.
B. V aughan, vice president; O. M. Jo r
genson, cashier, and R. M. W aters, as
sista n t cashier. H. T. H edden is a
m em ber of th e board of directors w ith
th e officers.
49
A t Independence
H. R. YOUNG
President
Arlington
PRANK W ARNER
Secretary
Des Moines
Propose New Bank
Organize
Fifty-tw o professional an d business
m en, fa rm e rs an d frien d s of N o rth
w est D av en p o rt m et in N o rth w est
D aven p o rt recently. It w as an nounced
th a t th e fo rm er b an k building a t 16th
and W ash in g to n stre e ts h ad been p u r
chased, th a t a c h a rte r w ould be
g ra n te d w h en $100,000 in capital an d
$25,000 in su rp lu s is fu lly subscribed.
N early 50 p er cent of th e capital
w as su bscribed for a t th is m eeting.
A com m ittee consisting of Ju liu s
Junge, ch airm an, R ay Sm ith, Ben
K elling, Dr. H. J. G u en th er an d H. C.
L y n n w as appointed to com plete or
ganization.
B ankers of Jefferson and V an B uren
counties m et recen tly in K eosauqua
an d organized th e Jefferson-V an B uren
B an k ers A ssociation. A t th e business
m eeting officers for th e organization
w ere elected as follows: F. E. Ovrom,
K eosauqua, president; R udolph Eastb u rn , Fairfield, vice p resid en t an d Sam
H. W atson of Stockport, secretary
tre a su re r. T he n ex t m eeting for th e
group w ill be held in Fairfield on Mon
day A pril 21.
Annual Dinner
More th a n 80 officers, directors and
em ployes of th e Toy N ational B ank
an d th e F a rm e rs L oan and T ru st Com
Clear Lake Changes
C. A. K nutson, p resid en t of th e Clear pany, Sioux City, m et for an an n u al
L ake B ank & T ru s t Com pany, a n d in n er and frolic recently.
R alph R. B rubacher, president, gave
nounced th a t he h as sold th e control
ling in te re st in th e in stitu tio n to M. th e principal ta lk of th e evening. J.
A. A rneson of F airm o n t, M innesota, W illiam Van Dyke w as in charge of
th e program w hich included group
w ho w ill succeed him as p resident.
singing, inform al e n te rta in m e n t by
K n u tso n said he w ill continue to
be connected w ith th e b a n k as ch a ir m em bers of th e group and a dance.
m an of th e board. H e also is p re si
d en t of th e Iow a H ard w are M utual
Denison Meeting
In su ra n c e A ssociation of M ason City,
D uring an h o u r and a half of bom
Iowa.
T he b a n k is being rem odeled a t b a rd m en t of questions and answ ers
p re se n t to provide la rg e r q u arters. w ith F ra n k W arner, secretary of th e
Iow a B an k ers’ association, an d H arold
I t is Clear L ak e’s only b an k an d h as
C henhall, Inspector, W age and H our
assets of n e a rly a m illion dollars.
D ivision for Iowa, as th e principals,
b an k ers from A udubon, Carroll, H a r
Denison Bank Sold
Sale of th e C om m ercial S tate B ank rison, Shelby and C raw ford counties
to th e C raw ford C ounty T ru s t & Sav a tten d ed an inter-county m eeting last
ings B ank, b oth of Denison, w as a n m o n th a t Denison, h eard m uch and
learn ed m ore about th e m ethods of
nounced by th e p resid en ts of th e tw o
o p erating banks, and p a rticu larly
banks.
F o u n d ed in 1919 by J. W. M iller, Jr., ab o u t th e W age and H our law, and
D enison a b stracter, th e Com m ercial practices of some banks in Iow a th a n
S tate h ad a reco rd of 22 y ears of se rv th e y h ad know n to exist.
A n o th er h o u r and a h alf tim e w as
ice.
All assets w ere p u rch ased an d de ta k e n up in listening to talk s on “De
posit liabilities assum ed by th e p u r fense L oans an d Iow a B anks,” “The
W age and H o u r A ct and B anks,” “P ro
chasing bank, of w h ich H. E. Q ualheim
duction C redit A ssociation,” “Im p o r
is president.
M iller an d his b ro th er, J. J. M iller, ta n t B anking M easures,” and o th er
subjects of im portance to bankers.
w ho w as cash ier of th e Com m ercial
E ighty-four plates w ere served a t
State, w ill operate an ab stract, real es
th e banquet.
tate and in su ran ce agency.
Seventy-seven atten d ed th e in te r
county b a n k e rs’ m eeting, held a t In d e
pendence. T hey came from th e four
counties of th e group, Linn, Black
H aw k, B enton and B uchanan, as well
as from o th er counties, 15 from Black
H aw k, 11 from F ayette, 11 from B en
ton, 10 from L inn, 20 from B uchanan,
several from B rem er and D elaware.
R egistration, in charge of M isses Je a n
H ohl and M ary Reidy, of th e F arm ers
State Savings bank, began at 5 p. m.
H osts w ere P resid en t E. F. Sorg, Vice
P resid en t E. E. E v erett, C ashier C. L.
F ie ste r and directors of th e local bank.
T he dining tables w ere adorned w ith
flowers. W. W. B lasier, of Jesup,
p resid en t of th e B uchanan C ounty
B ankers A ssociation, presided.
Opens Farm Unit
T he Algona S tate B ank has opened
an a g ricu ltu ral d ep artm en t and E. R.
M orrison has been nam ed to head the
new unit.
B ank officials recently m ade th e an
nouncem ent and stated th a t M orrison
w ould tak e up his new duties M arch 1.
The new a g ricu ltu ral d ep artm en t
head served five y ears as county agent
in K ossuth county and also w as county
agent in H um boldt county.
M ore recen tly he has served as land
a p p raiser for th e B ankers Life Com
p any of Des M oines and has had w ide
experience in farm m anagem ent su p er
vision, soils and land appraising.
A t Garner
A Tri-county m eeting of ban k ers
from K ossuth, AVinnebago and H an
cock counties w as held a t G arner last
m onth.
P resid en t H. R. Young and S ecretary
F ra n k W arn er of th e state association,
M arvin Selden, vice presid en t of th e
M erchants N ational bank, and R alph
Bunce, deputy su p erin ten d en t of b an k
ing of Iowa, Des Moines, w ere th e
speakers.
A rth u r K udje, presid en t of th e H an
cock County B ankers A ssociation,
presided. H erb O llenburg, vice p resi
den t of th e H ancock County N ational
Bank, G arner, gave th e address of w el
come.
Promoted
C. E. O rr of M arshalltow n, w ho has
been a ssistan t cashier a t th e Security
Savings B ank a t th a t place, has been
prom oted to cashier.
Mr. O rr w as form erly m anager of
th e d ep artm en t of th e F irs t B ank and
T ru st Com pany in Eddyville.
N orthw estern B anker
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Federal Reserve Bank of St. Louis
March 19bl
v
Iowa Farmers realize the importance
of each step in the preparation of a
good seed bed. And Iowa bankers,
realizing the importance oi careful
attention to every detail in bank
correspondence, often comment on
the thorough manner in which we
handle their Des Moines business.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
S-r-'-
»
'
:
■
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
mm
52
Cashier at Eldon
R obert W eidenbach fo rm er vice
p resid en t and cashier of th e N ational
B ank of N orfolk, Neb., is in E ldon to
begin his duties in th e m an ag em en t of
the F irs t N ational B ank, replacing L.
N. Frescoln, now a t Fairfield. W eiden
bach has p u rch ased an in te re st in th e
ban k h ere and w ill be cashier.
W eidenbach w as cash ier of th e N a
tional B ank in N orfolk since 1932 and
w as in th e b an k in g business a t A ber
deen, S. D., for 15 y ears before going
to N orfolk.
T hree y ears ago he w as appointed
vice p resid en t of th e N ational B ank
a t N orfolk and retain ed th a t office as
w ell as th e cashiership u n til his
change to Eldon. He has been in th e
ban k ing business m ore th a n 25 years.
Essex Meeting
The F irs t N ational B ank of E ssex
w as ho st recen tly to 40 b an k ers of
Page county a t a chicken dinner. A t
ten d in g from S henandoah w ere H a rry
Ross, F re d C hristiansen, E a rl C. Fishbaugh, R obert F ishbaugh, W illiam
L ongm an and C. W. F ishbaugh.
An Important Center
The all-important location of Sioux City as
the commercial, live stock, grain and hay center
of the Northwest, makes a correspondent con
nection here highly important.
Insure the prompt and accurate handling of
all your Sioux City items by sending them direct
to the First National Bank in Sioux City.
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 R P O R A T IO N
A ro u n d table discussion w as held.
The n ex t q u a rte rly m eeting is planned
to be in Clarinda.
Those atten d in g from E ssex in
cluded G. J. Liljedahl, Mr. and Mrs.
C larence Liljedahl, Jo h n and LeRoy,
Mr. an d Mrs. DeLoss Quist, Mr. and
Mrs. Oliver H agglund, Mr. and Mrs.
A. D. Collins, Mr and Mrs. M. E. Col
lins, Mrs. A lfred Sar and Miss Nona
Glahn.
Clearing House Elects
E lection of Carl L. W ind, cashier of
th e M oline N ational Bank, as p re si
d en t of th e C learing H ouse Associa
tio n of th e quad-cities featu red th e a n
nual m eeting held a t th e F irs t T ru st &
Savings Bank, D avenport. R. E. Byerrum , executive vice p resid en t of the
F irs t T rust, re tire d as p resid en t of
th e association.
H erm an Staak, cashier of th e Da
ven p o rt B ank & T ru st Company, w as
elected vice president, and R ay Osterm ann, executive vice p resid en t of th e
Rock Islan d B ank & T ru st Company,
w as nam ed secretary -treasu rer.
Named President
R. E. Courson of Belm ond w as
nam ed p resid en t of th e P ocahontas
S tate B ank at a m eeting of th e board
of directors. All of th e m em bers of
th e board w ere present. T hey are
W. F. Rich, F o rt Dodge; B ern ard
Bohlke, N. B. H om an, L. S. H om an
of R em sen; L. E. E ckerson and E d
Carm ody, cashier and assista n t cashier
respectively. Mr. E ck erson is vice
p resid en t of th e bank.
Mr. C ourson succeeds th e late E. H.
Rich w ho died last October.
Heads County Bankers
R. J. M cCleary, vice presid en t and
cashier of th e S ecurity State Bank,
K eokuk, w as elected presid en t of the
Lee C ounty B an k ers’ A ssociation a t
a m eeting held in Keokuk.
F o rt M adison banks, th e F o rt M adi
son Savings Bank, Lee C ounty Sav
ings B ank and th e Iow a S tate B ank
and th e W ever Savings B ank a t Wever, are all m em bers of th e association.
Cashier at W est Des Moines
IN SIOUX C I T Y
N orthw estern R anker
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Federal Reserve Bank of St. Louis
March 19-'ll
Jam es L. Gray, m an ag er of th e
F arm ers State B ank of E llsw orth, left
M arch 1 for W est Des M oines w here
he has accepted th e position of cashier
w ith th e F irs t N ational Bank.
Mr. Gray, w ho is a g rad u ate of th e
U n iv ersity of N ebraska, cam e from
Coleridge, Nebr., and has been asso
ciated w ith th e E llsw o rth b an k for
th e p ast th re e years.
53
Friendly Service and
Modern Facilities
in Des Moines
ALLEY
D E S
M O I N E S
M em b er F ederal D e p o sit Insu ran ce C orporation
MEET US WHEN YOU COME TO DES MOINES
Officers
F rederick M. M orrison, President
Winfield W. Scott, Vice President
J. R. A stley, Cashier
E dw ard P. K autzky, Assistant Vice President
M arvin L. Payne, A ssistant Cashier
F ra n k M. Thompson, A ssistant Cashier
N orthw estern B anker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
March 1941
54
Two
I
Groups
o
w
ü
Hold Annual Meetings
Group One at Sioux City and Group Eleven at Burlington in
1941 Conclave
T WO of th e larg est g roups of th e
Iow a B ankers A ssociation held
th e ir a n n u al m eetings last m onth,
w hen G roup One m et in Sioux City
on F e b ru a ry 12th, and G roup E leven
convened in B urlington. A ttendance
a t both m eetings w as all th a t could be
desired, w ith u p w ard of four h u n d red
being reg istered a t each place.
E lection of officers w as held by both
groups. A. J. B ertelsen , cashier of
the M orningside Savings Bank, Sioux
City, w as nam ed ch airm an of G roup
One, and serving w ith him is George
E. W ilson, vice p resid en t of th e Chero
kee S tate B ank, holding th e office of
secretary -treasu rer.
N ew officers of G roup E leven are
H. L ee H uston, cashier of th e Colum
bus Ju n ctio n S tate Bank, nam ed as
chairm an, and R. J. M cCleary, vice
presid en t and cashier of th e Security
S tate B ank, K eokuk, w as elected sec
re ta ry -treasu rer. These la tte r officers
hold for a tw o-year term .
Am ong resolutions adopted by
G roup One w as one expressing oppo
sition to the p rev alen t g overnm ent
com petition in th e ban k in g business,
and u rging th a t g overnm ent agencies
created du rin g th e so-called em ergency
of th e depression should now be u n
dergoing an orderly liquidation. The
group also selected Sioux City as the
m eeting place for 1942, agreeing to
m eet again on F e b ru a ry 12th, L in
coln’s birthday, since it is a b an k hol
iday.
A n adding m achine contest w as con
ducted am ong em ployees in th e Group
One te rrito ry , w ith suitable prizes
given by the Sioux City C learing
H ouse A ssociation. W inners in th e
contest w ere P aul D ick, E arly; L ouis
H, M ulder, Rock Valley; H. R. Bonnander, Larchw ood; and D. E. M ues,
Hull. The first place w inner, Mr.
Dick, and D w ain L oyd of H ornick,
last y e a r’s state w in n e r in a sim ilar
contest, th en gave an exhibition.
H o y t R. Young, cashier of the A m eri
can N ational Bank, A rlington, and
presid en t of th e Iow a B ankers Asso
ciation, w as p resen t and spoke at th e
m eetings of both groups. Mr. Young
is suggesting a convention of Ju n io r
B ankers, separate from th e an n u al
m eeting of th e Iow a A ssociation, to
be held probably in Ju n e of this y ear
(since th e an n u al convention w ill be
held next S eptem ber). He proposed
an evening session th e first day, fol
lowed by m orning and afternoon ses
sions th e n ex t day, and p erhaps to
close w ith a d in n er and dance th a t
evening.
Senior b an k ers at both
m eetings, from the position of cashier
on up, w ere asked for a rising vote
on th e idea. In Sioux City, the seniors
A T TH E G R O U P E L E V E N M E E T IN G IN B U R L IN G T O N
T he p ic tu re s a t th e r ig h t w ere ta k e n a t th e a n n u a l m e e tin g
of G roup E le v e n o f th e Io w a B a n k e rs A sso c ia tio n , hold la s t
m o n th in B u rlin g to n . B e a d in g fro m le f t to rig h t, th o se p ic
tu re d a re, 1-—Alden S. Bagnall, v ice p re s id e n t L iv e S to c k N a
tio n a l B a n k , C hicago. 2—Ben S. Summerwill, p re s id e n t Io w a
S ta te B a n k & T ru s t C om pany, Io w a C ity ; Frank Fuchs, a s
s is ta n t c a s h ie r F i r s t N a tio n a l B a n k , S t. L o u is; a n d E. K.
Johnstone, p re s id e n t K e o k u k S a v in g s B a n k & T ru s t C om pany.
3— Ralph Bunce, Io w a d e p u ty s u p e rin te n d e n t of b a n k in g , Des
M oin es; a n d W. F. Gilam, B u rlin g to n . 4— W alker Hanna,
p re s id e n t W . D. H a n n a & C om pany, B u rlin g to n ; M. B. Guthrie,
c a s h ie r Io w a S ta te B a n k & T ru st, Io w a C ity ; M. E. Taylor,
a u d ito r, W. W. Summerwill, c re d it m a n a g e r, an d W. F. Schmidt,
a s s is ta n t c ash ie r, a ll of th e Io w a S ta te B a n k & T ru s t, Io w a
C ity. 5— B etty Binder, W . D. H a n n a & C om p an y ; Alex Foggy,
d ire c to r F a rm e rs S a v in g s B a n k , W e v e r; a n d Audra Jones, W . D.
H a n n a & C om pany. 6—K. C. Mowery, e x e c u tiv e v ice p re s i
d e n t P eo p les S ta te B a n k , B a ta v ia ; G. A. Sherman, a s s is ta n t
c a s h ie r F i r s t N a tio n a l, F a irfie ld ; M. J. Grogan, vice p re s id e n t
P e o p les S ta te B a n k , B a ta v ia ; A. R. Hass, a s s is ta n t c a sh ie r
N a tio n a l B a n k of C h a rito n ; an d H. W. Greene, a s s is ta n t c a sh ie r
C om m ercial N a tio n a l B a n k , P e o ria , Illin o is. 7— Verne Bartling,
a s s is ta n t c a sh ie r F i r s t N a tio n a l B a n k , C hicago; a n d L. N.
Frescoln, e x e c u tiv e v ice p re s id e n t F i r s t N a tio n a l, F a irfie ld .
8— K. H. Robertson, a s s is ta n t c a s h ie r C olum bus J u n c tio n S ta te
B a n k ; A rt Fry, C o n tin e n ta l Illin o is N a tio n a l B a n k , C hicago;
K atherine Downey, C itiz en s S ta te B a n k , D o n n ellso n ; Tom Mc
Donnell, St. P a u l M e rc u ry -In d e m n ity , D es M oines, a n d F. W.
Allen, a s s is ta n t c a sh ie r M u s c a tin e B a n k & T ru s t C om pany.
9— H. N. Boyson, vice p re s id e n t M e rc h a n ts N a tio n a l B a n k ,
N orth w estern B anker
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Federal Reserve Bank of St. Louis
March 19M
C ed ar R a p id s ; C. C. Williamson, v ice p re s id e n t F ir s t T ru s t &
U nion, S ig o u rn e y ; Bob Root, B la ir B o n n er, D es M o in es; Byron
McKee, vice p re s id e n t a n d c a sh ie r M u sc a tin e B a n k & T ru s t;
a n d Clarence Diehl, vice p re s id e n t Iow a-D es M oines N a tio n a l
B a n k . 10—M. C. Hook, Jr., b o n d d e p a rtm e n t M e rca n tile -C o m
m erce B a n k , S t. L o u is; O. L. Karsten, e x e c u tiv e vice p re s i
d e n t N e w to n N a tio n a l B a n k ; Charles Kuning, a s s is ta n t v ice
p re s id e n t A m e ric a n N a tio n a l, C h icago; F rank C. Crone, e x ecu
tiv e v ice p re s id e n t N a tio n a l B a n k o f W a s h in g to n ; Howard A.
Mathews, p re s id e n t D a n v ille S ta te S a v in g s B a n k ; a n d W. H.
Bangs, d ire c to r F i r s t N a tio n a l, F a irfie ld . 11—Charles Nelson,
vice p re s id e n t N o rth e rn T ru s t C om pany, C hicag o ; an d Henry
Scarborough, p re s id e n t S c a rb o ro u g h & C om pany, C hicago. 12—
A. W. Huey, a s s is ta n t s e c re ta ry M ississip p i V a lle y T ru st, S t.
L o u is; Ray Scott, a s s is ta n t c a sh ie r Com m erce T ru s t C om pany,
K a n s a s C ity ; a n d B urt Olson, a u d ito r, M u sc a tin e B a n k &
T ru st. 13—V. P. Cullen, e x e c u tiv e vice p re s id e n t T he N a tio n a l
B a n k of B u rlin g to n ; Dick Ryan, c a s h ie r L ib e rty T ru s t & S a v
ings, D u ra n t; J. G. Engel, c a sh ie r B e n n e tt S ta te B a n k ; H. J.
Lamp, v ice p re s id e n t B e n n e tt S ta te ; Fred D. Cummings, D ro v
ers N a tio n a l B a n k , C hicago; J. E. Henson, c a sh ie r L o u isa C oun
ty N a tio n a l, C olum bus J u n c tio n . 14—William Miller, vice
p re s id e n t C ity N a tio n a l B a n k , C hicago; H. G. Nordberg, M in n e
apolis, a n d Ed Kane, O ttu m w a, b o th of E. H. R ollins & Sons.
15—W. E. Whorrall, v ice p re s id e n t a n d c a sh ie r F a rm e rs S a v
in g s B a n k , B e a m a n ; a n d Earle R. Newton, C onrad. Id — John
Duerkop, S ta te C e n tra l S a v in g s; Aubrey Allen, a s s is ta n t c a sh
ie r K e o k u k S a v in g s B a n k ; E. R. Cochrane, v ice p re s id e n t a n d
c a sh ie r K e o k u k N a tio n a l; a n d L. A. Whetstone, a s s is ta n t c a sh
ie r K e o k u k N a tio n a l.
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Federal Reserve Bank of St. Louis
56
•
I O W A
NEWS
•
r DROVERS
WILLIAM C.
CUMMINGS
W e Cordially Invite
Your Inquiry or
Personal Visit
President
FREDERICK N.
MERCER
The Drovers N ational serves every branch of
Vice-President
the Live Stock Industry.
Its service is h igh ly
sp ecialized an d clo sely p ersonal— built on 59
y ea rs of exp erien ce.
A s a Banker w h o se cu s
tomers include m any shippers of liv e stock,
you
w ill recognize
in Drovers
Service
the
gen u in e utility v a lu e of prompt, d ep en d ab le
Vice-President
and Cashier
attention to your items at the center of things.
DALE E.
CHAMBERLIN
Vice-President
FRANK M.
COVERT
Assistant
Cashier
ROBERT
LOUGH
D R OV ER S NATIONAL RANK
D R OV ER S T R U S T & S AV I NG S HANK
Assistant
Cashier
M E M B E R S . F E D E R A L D E P O S IT IN S U R A N C E C O R P O R A T IO N
B A N K IN G
$m
f
V
voted w h at appeared to be about 5050 for th e proposal, w hile in B u rling
ton, th e vote seem ed to be som ew hat
larg er in favor of th e idea. N atu rally
Ju n io r b an k ers a t b oth m eetings w ere
v ery m uch in favor of th e plan.
At th e Sioux City m eeting, Ralph
B unce rep resen ted th e Iow a b anking
departm ent, and gave a m ost in te re st
ing discussion of present-day b anking
conditions in Iowa, an d cited su b stan
tial u p tu rn in deposits w hich Iow a
banks are now experiencing. D ave
B ates, su p erin ten d en t of banking, a t
tended th e B u rlington m eeting, and
gave his u sual fine address, although
his talk w as touched w ith a note of
sadness, since he leaves his office of
Iow a b ank su p ervisor th is com ing
sum m er. He w ill be g reatly m issed as
a friend and advisor.
F ran k W arner, capable and efficient
Iowa A ssociation secretary, spoke a t
both group m eetings, choosing as his
subject a brief explanation of th e
m any details su rro u n d in g b an k com
pliance w ith th e w ages and h o urs law.
It is a subject w hich cannot be dis
m issed w ith only passing reference,
as m any ban k ers discovered after lis
ten in g to only a few of th e h ig h tlig h ts
w hich Mr. W arn er presented.
Speaking at Sioux City, E. E. Man
uel, p resid en t of th e George S tate
Bank, and ch airm an of Group One,
said in part:
“In a system of in dependent u n it
banks, th e b ank w hich best serves th e
com m unity is th e b ank w hich is m ost
certain to live th e longest and be th e
m ost profitable to its stockholders.
Since th e type of m an w ho sta rts a
b ank in a sm all com m unity is essen
tially contructive, his n a tu ra l associ
ations and sym pathies are w ith th e
m en of constructive type, and he can
extend th e facilities of the b ank m ore
liberally to them . H is loans tak e into
account as a first consideration ch a r
acter and m oral responsibility. He is
n a tu ra lly inclined to encourage young,
aggressive and e n terp risin g individ
uals w ho will, in th e course of tim e,
bring business to the in stitu tio n as he
succeeds and w ill develop com m ercial
A T TH E G R O U P O N E M E E T IN G IN S IO U X CITY —
P ic tu re d a t th e rig h t a re a n u m b e r of th o se a tte n d in g th e
a n n u a l m e e tin g o f G roup One of th e Io w a B a n k e rs A sso c ia
tio n w h ich m et in Sioux C ity. B e a d in g fro m le f t to rig h t
th e y a re, 1— T. E. Wangsness, vice p re s id e n t a n d c a sh ie r F i r s t
N a tio n a l B a n k , G a rre tso n , S outh D a k o ta ; a n d Don Crouley,
a s s is ta n t c a sh ie r N o rth w e s te rn N a tio n a l B a n k , M in n eap o lis.
2— Ii. O. Olson, c a sh ie r M id la n d N a tio n a l B a n k , M in n e ap o lis;
N orthw estern B anker
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Federal Reserve Bank of St. Louis
March 19'/1
►
a n d A. E. Anderson, c ash ie r C lay C ounty N a tio n a l B a n k ,
S pencer. 3— Fred Cummings, D ro v e rs N a tio n a l B a n k , C hicago;
a n d L. K enneth Billings, a s s is ta n t v ice p re s id e n t C ity N a tio n a l
B a n k , C hicago. 4— Norman Shaffer, v ice p re s id e n t C o n tin e n ta l,
C hicago; a n d H. W. Sibley, a s s is ta n t c a sh ie r O ltm a n n & P h e lp s
B a n k , K in g sle y . 5— Emmett E. Johns, a s s is ta n t vice p re s id e n t
C e n tra l N a tio n a l, D es M oines; S. I. Russell, p re s id e n t D ick in -
son C o u n ty S a v in g s B a n k , M ilfo rd ; Charles Kuning, a s s is ta n t
v ice p re s id e n t A m e ric a n N a tio n a l, C hicago; a n d John Sieh,
S p en cer. 6— F ritz Fritzson, v ice p re s id e n t a n d c a s h ie r F ir s t
N a tio n a l B a n k , S ioux C ity ; a n d W. H. Bischel, p re s id e n t F ir s t
T ru s t & S a v in g s, A u re lia . 7— L. E. Christensen, p re sid e n t
F a rm e rs N a tio n a l, A u re lia ; M. A. Wilson, vice p re s id e n t a n d
c a sh ie r L iv e S to c k N a tio n a l, S ioux C ity ; a n d C. W. Logan,
p re s id e n t F i r s t T ru s t & S a v in g s, M oville. 8— Verne Bartling,
a s s is ta n t c a s h ie r F i r s t N a tio n a l, C hicag o ; a n d Hans Boyson,
v ic e p re s id e n t M e rc h a n ts N a tio n a l B a n k , C ed ar R a p id s. 9—
Louis Jacoby, C hase N a tio n a l B a n k , N e w Y o rk ; a n d A. G. Sam,
v ic e p re s id e n t F i r s t N a tio n a l B a n k , S ioux C ity.
10— C. L.
Adams, L iv e S to c k N a tio n a l, S ioux C ity ; J. P. Schutt, p re s i
d e n t V a lle y S ta te B a n k , R ock V a lle y ; J. P. McCartney, U n ite d
S ta te s C heek B ook C om pany, S ioux F a lls ; Ed Peck, U. S.
C heck B ook, O m a h a; a n d L. C. Lamarr, T oy N a tio n a l, Sioux
C ity. 11—E. E. Manuel, p re s id e n t G eorge S ta te B a n k , G eorge;
a n d H oyt Young, c a s h ie r A m e ric a n N a tio n a l B a n k , A rlin g to n ,
a n d p re s id e n t Io w a B a n k e rs A sso ciatio n . 12—Robert E. Hunt,
N o rth e rn T ru s t C om pany, C hicag o ; J. P. Hainer, vice p re s id e n t
F i r s t N a tio n a l, S ioux C ity ; a n d W. B. Whitman, a s s is ta n t sec
r e ta r y M a n u fa c tu re rs T ru s t C om pany, N e w Y ork. 13— L. A.
W itter, p re s id e n t F a rm e rs T ru s t & S a v in g s, S p e n c er; E verett
Griffith, a s s is ta n t v ice p re s id e n t Iow a-D es M oines N a tio n a l
B a n k ; Ralph Bunco, d e p u ty com m issioner of b a n k in g , D es
M o in es; G. E. Wilson, vice p re s id e n t C herokee S ta te B a n k ;
M. A. Wilson, S ioux C ity ; C. W. Logan, M o v ille ; a n d Carl
Fredricksen, p re s id e n t L iv e S to c k N a tio n a l, Sioux C ity.
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Federal Reserve Bank of St. Louis
March 19^1
58
and in d u stria l en te rp rise s and be a
factor in th e creatio n of corporate and
p riv ate u n d ertak in g s, all of w hich w ill
be feeders to th e bank. As th is type of
individual is u su ally n o t th e possessor
of high-class co llateral a t th e begin
ning of his career, th e b a n k e r is de
pen d en t in a large m easure on th e
character, of w hich he can only be
sure by p ersonal contact an d acq u ain
tan ce—b o th of w h ich are quite im
possible u n d e r b ran ch banking. The
distin ctiv e accom plishm ent of th e
b an k in g sy stem of th e U nited States
is its v e ry co n trib u tio n to en terp rise
and its stim u latio n of grow th, its c rite
rio n is service.
R. R. Brubacher, p resid en t of th e
Toy N ational B ank, spoke a t Sioux
City on th e subject of defense loans,
and said:
“T here is no question b u t th a t th e
natio n al defense pro g ram is a g reat
po ten tial source of loans for b anks
and th e applications should go th ro u g h
norm al channels and th a t m eans:
F irs t—to th e local banks;
Second—to th e city correspondent;
T h ird —to th e F ed eral R eserve
Bank, and failing th ere, to th e RFC.
“F o r th e p a st one h u n d re d y ears a
gov ern m en t co n tract has not been a s
signable, b u t in 1940 th e law w as
changed so th a t a claim arisin g from
a co ntract is assignable. T his is an
o p p o rtu n ity for banks to m ake a great
reco rd for them selves, and in m aking
such loans th ere w ill be no reason for
anyone to receive th e im pression th a t
b anks are n ot cooperating to th e full
est e x ten t in th e defense p rogram .”
Tom C ollins, th e K ansas City Phunny P hilosopher, lived up to his re p u
tatio n in B urlington, w hen he ad
dressed th a t group on a subject of his
ow n choosing, w hich he w ould prob
ably have done u n d er an y circum
stances, even th o u g h he had been
assigned one.
Am ong resolutions adopted by
G roup E leven b an k ers w ere th e fol
lowing:
“W e are opposed to any unneces
sary go v ern m en t com petition in our
p a rtic u la r field; w hile a nu m b er of
th e agencies set up by th e governm ent
a few y ears ago w ere possibly of
value at th e tim e of th e ir organiza
tion, it is th e feeling th a t th ese w ere
set up u n d er em ergency conditions
an d it is our best ju d g m en t th a t this
em ergency has long since passed and
th a t th e banks are b oth able and
w illing at th e p re se n t tim e to take
care of any legitim ate call on them
for credit purposes, and th a t th e u n
necessary g o v ernm ent agencies should
Curtis Companies Incorporated
General Office, Clinton, Iowa
Plants at: Clinton, Iowa; Wausau, W is.; Chicago,
111.; Lincoln, Nebr.; Sioux City, Iowa;
Minneapolis, M inn.; Topeka, Kansas.
One of the Nation's Largest Woodwork Manufacturers
M akers o f th e fa m o u s S i l e n t i t e W indow s and a fu ll lin e o f
b u ild ers w ood w o rk — en tra n ces, d o o rs, trim , w in d ow s, fra m es,
m a n tels, k itch en ca b in ets, ca b in etw o rk , stairw ork. P rod u ct sold
by le a d in g lu m b er dealers th ro u g h o u t U n ited States and Canada.
In terestin g fa cts rela tin g to C linton o p era tio n :
E m p lo y s a p p ro x im a tely 9 5 0 p e o p le.
A n n u al d isb u rsem en t in w ages and salaries about $ 1 ,1 5 0 ,0 0 0 .
In 1 9 4 0 :
Cut a p p ro x im a tely 3 3 ,7 0 0 ,0 0 0 board fe e t o f lu m b er.
U sed 1 0 0 ,0 0 0 b o x e s o f glass.
U sed 2 ,0 0 0 ,0 0 0 sq u are fe e t o f screen w ire.
N in eteen h u n d red fo rty -o n e m ark s the 7 5 th year o f this w ell
k n o w n co n cern w hich was fo u n d e d in 1 8 6 6 .
The CITY NATIONAL BANK
CLINTON, IOWA
Member of the Federal Deposit Insuran ce Corporation, Washington, D. C.
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Federal Reserve Bank of St. Louis
March 19bl
be placed on a program of orderly
liquidation.
“W e believe th a t the rap id develop
m en t of th is co u n try has been aided
in no sm all ex ten t by the u n it b an k
ing system and we urge upon those
in a u th o rity to discourage in every
w ay any legislation th a t w ould cu r
tail th e activ ity of th e u n it b an king
system in th is co u n try to th e benefit
of group or b ran ch banking.
“T his y ear is th e biennial m eeting of
th e Iow a legislature an d it is th e prob
ability th a t m any suggestions w ill be
m ade to th e legislature for law s th a t
m ay affect our p a rtic u la r business.
W e urg e upon our b an k ers to keep
in close touch w ith th e legislative
program as it develops and to assist
th e Iow a B ankers A ssociation officers
and com m ittees in every possible w ay
to th e end th a t n o th ing h arm fu l to
the b anking business be p ut into the
statutes.
“W e h eartily com m end the state
b anking d ep artm en t and its exam iners
for th e ir v ery constructive attitu d e
tak en to w ard th e problem s arising
du rin g th e ir exam inations. We also
w ish to add a w ord of com m endation
for th e n ational b anking d ep artm en t
for th e fine cooperation th ey have
shown.
“W e w ish to com m end th e Iowa
B ankers A ssociation and its officers
for th e ir efforts, and th e v ery fine re
sults obtained in g ettin g a reduction
of in su ran ce rates for th e Iow a banks.
“On Ju ly 1, 1941, th e four y ear term
of D. W. Bates, su p erin ten d en t of
banks w ill end, and th e governor w ill
appoint a successor to Mr. Bates. We
appreciate th e cooperation he has giv
en th e banks and ban k ers du rin g his
term of office. W e hope th a t he w ill
continue to a tte n d th is m eeting each
y ear for we do n ot w a n t to lose a m an
w ith such a friendly disposition and
fine ability. W e w ish him success in
any new v e n tu re and th e best of
h ealth .”
BANK CLERKS WANTED
W e are receivin g num erous ca lls from
banks for exp erien ced bank posting
m achine operators, stenographers, tell
ers an d assistan t cashiers. If you are
qualified, under 40 y ea rs of a g e and
interested in securing such em ploym ent,
write for application blank. State ex
p erien ce, qualifications, and sa la ry ex
pected.
T h e C harles E. W alters Co.
“ The N a tio n a l C learin g H ouse for
E xperien ced B ank H e lp ”
1313 First N ational Bank Bldg.,
O m aha, Nebr.
59
the b ank is still doing business in th e
old stan d b u t in en tirely new s u r
roundings.
A fram e building w as
th ro w n up around th e v au lt w hich
rem ained in ta c t an d th is w ill serve
u n til definite plans are m ade for a
new hom e, w hich, incidentally, Mr.
B uell, cashier, says he hopes w ill not
be too long.
IOW A NEWS
FRO M
HERE A N D
THERE
By J . A . Sarazen, A sso cia te Editor
T he F arm ers State Savings Bank,
J. A. SA R A Z E N
N E of th e several inter-county
m eetings w hich F ra n k W a rn e r
has been holding aro u n d th e state
th is w in te r w as held a t Independence,
Iowa. Seventy-seven w ere reg istered
for th e d in n e r w hich w as follow ed by
th e business m eeting. P rin cip al sp eak
ers w ere F. L. Ludem an, Jr., inspector,
W age and H ours D ivision for Iowa;
O
q u arters. V ery n e a t b u t m ost tem
porary. F ire com pletely destroyed the
b an k building on D ecem ber 3rd, and
Independence, reduced in te re st rates
to one p er cent th e first of th e year.
T he y ear end statem en t lists deposits
of $2,242,000, up $165,000 over a y ear
ago. L iabilities and deposits are $1,144,000 and cash of nearly $1,000,000.
Ralph L. B unce, E. F. Sorg, F rank
W arner, Chas. S. M cK instry, M arvin
Selden and H oyt Y oung.
AY. AA\ B lasier, Jesu p b anker, acted
as ch airm an an d did an excellent job
of in jectin g pep into th e m eeting
w hich lasted u n til a fte r m idnight, a
good sto ry-teller and a forceful speak
er.
M arvin Selden an d Chas. M cK instry
are to be com m ended on th e w ay th e y
covered “D efense L oans in B anks.”
Mr. M cK instry em phasized th a t no
b an k e r should p erm it a p o ten tial b o r
row er w ith a defense co n tract to
leave h is b a n k u n til definite plans
are m ade to ta k e care of him . If you
can ’t tak e care of him , tu r n him over
to som e b a n k th a t can. N ever let it
be said th a t b a n k ers are n o t doing
th e ir p a rt in th is defense p ro g ram
and also rem em b er th a t we are in di
rec t com petition w ith th e R FC .”
D oubtless b a n k e rs are w ak in g up
to th e ir respon sib ilities concerning
th e W age an d H o u r A ct as affects
banks, an d it tak es m eetings like
these to b rin g out th e seriousness of
it. The discussion b etw een F ra n k
W a rn e r an d F. L. L udem an, Jr., on
th is subject w as follow ed v ery closely
and w h en th e m eetin g broke up th e re
w as h a rd ly a v acan t ch air in th e house.
Mr. L udem an b ro u g h t out th a t to
date th e re h as been no need for p ro se
cution in Iow a b u t it has been neces
sary to use som e persuasion. H e in
vited b a n k ers to m ake a re q u e st to be
checked for com pliance of his office.
The ad dress is W age an d H o u rs Di
vision for Iowa, 227 Old F ed eral Bldg.,
Des Moines, Iowa.
4 0 0 Banks
in the Middle West
carry accounts with us. They have
found our 73 years of banking e x
perience of value to them. May
we explain how this experience
can be made of value to you?
•
LIVE STOCK
N A T I O N A L BANK OF C H IC A G O
Established 1868
UNION
STOCK
YARDS
Member Federal Deposit Insurance Corporation
If you w a n t to be rem in d ed of old
fro n tie r days, you should step into
th e Lone Tree S avin gs B an k ’s p re se n t
N orthw estern Banker
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Federal Reserve Bank of St. Louis
March 1941
60
The Farm ers Savings Bank, W ever,
paid stockholders a 2 p er cent divi
dend in 1940, th e first for a long tim e.
D eposits are $412,000.
The H en ry C ounty Savings Bank,
Mt. P leasant, renew ed its c h a rte r as
of F e b ru a ry 27th. A t th e sam e tim e
capital w as increased from $86,000 to
$100,000 by declaring a capital stock
dividend. J. P. Budde is president.
Common w ill now be $76,000 and p re
ferred $24,000.
Over a t th e Cy W horrall home, it’s
a girl, S andra Kay, b o rn New Y ears
day. Mr. W h o rrall is vice president
and cashier of th e F arm ers Savings
Bank, Beaman.
years. Increased volum e has necessi
tated an increase in personnel, accord
ing to G. L. H ill, cashier.
The D enver Savings B ank has re
tired all p referred stock, according to
S. C. Kim m , cashier. The original
p referred w as $38,000 and th e officers
of th is b ank are to be congratulated
on a job well done.
New directors elected to th e board
of directors of th e Lisbon B ank and
T ru st Com pany at th e an n u al m eeting
are R. P. A ndreas, S. W. W ilder and
H arry AV. Sizer has joined th e Lis
bon B ank and T ru st Company, Lisbon,
com ing here from the W ashington
S tate Bank, W ashington, w here he
has been a teller for th e p ast nine
H. H. R ieger.
Mr. W ilder w ill also serve on th e
board of th e M ount V ernon B ank and
T ru st Company. A nother new di
recto r added to th e board of th is b ank
is W. G. K leineck.
D eath came Ja n u a ry 30th to John
P. Burr, p resid en t of th e Lone Tree
Savings Bank. He w as th e last of
the original stockholders w ho o rgan
ized th e b ank fifty y ears ago and had
served the ban k as presid en t for th e
last seven years. He w as 80 y ears
old.
At th e ann u al m eeting of th e Peo
ples Savings Bank, Cedar Rapids,
W m . R inderknecht, form erly cashier,
w as m ade vice president.
E rvin
Stepanek, form erly a ssista n t cashier,
w as m ade cashier. F ran k AVelch w as
reelected presid en t and P aul H uston,
vice president.
B oth banks a t W ash ington are open
to th e public from 9:00 a. m. to 2:00
p. m. each w orking day. These ho u rs
have been in effect for nearly a year.
CLOSE
TO
BAS I C
J. W. H elscher, president, F a rm e rs
Savings Bank, Keota, had th e m is
fo rtu n e to slip on th e ice in his d riv e
w ay and b reak his leg at th e ankle
in th ree places. He is expected back
at th e b an k sh o rtly a fter th e first of
M arch.
C H I C A G O ’S
INDUSTRIES
• Chicago's leadership in building materials is well founded.
E ach ban k a t K eota has a H elen
T hey
are second cousins by m arriage.
S tou tn er as a ssistan t cashier.
In its research institutes and factories are developed, tested
or manufactured, an important percentage of the materials
Mrs. W . C. S tuckslager, president,
Lisbon B ank and T ru st Company, and
vice president, Mt. V ernon B ank and
T ru st Company, w as m arried F e b ru
a ry 11th, to Judge Seth T hom as of
F o rt Dodge, Iowa. The w edding took
place a t Tucson, Arizona.
whose names spell specification standards from coast to
coast. As one of Chicago’s major banks, the American
National is equipped, through its complete correspondent
facilities, to represent the interests of out-of-town bankers
in all negotiations related to this basic industry.
The F arm ers S avin gs Bank, Walford, has gone in for stream lining,
A M ER IC A N N A T IO N A L BANK
AND TRUST COMPANY
too. N ew low type cages have been
added, Venetian blinds, etc.
D uring th e p ast y ear th e R ow ley
Savings Bank increased S. & P. $5,000
and paid a 6 p er cent dividend.
LA
S A L L E
S T R E E T
AT
W A S H I N G T O N
M em ber Federal Deposit Insurance C o rporation
COMMERCIAL
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Federal Reserve Bank of St. Louis
•
CHECKING
March 19bl
•
SAVINGS
•
TRUSTS
B u rlin gton b an king h o urs since
last fall are from 9:30 to 2:30 daily ex
cept on W ednesday w hen ho u rs are
from 9:30 to 12:00 noon.
61
- •
Fairfield b an k in g h o u rs are from
9:00 a. m. to 2:30 p. m. except S a tu r
day w h en th e b an k s close a t 1:00 p. m.
Leonard F rescoln , fo rm erly cashier,
F irs t N ational Bank, Eldon, has joined
th e F irs t N ational B ank, Fairfield, as
executive vice p resid en t and cashier.
He succeeds N. A. L ovett w ho has
joined a b an k at G ranite City, Illinois.
T he W ellm an S avin gs B ank paid an
8 p er cen t dividend last y e a r an d
added 20 p er cent to surplus.
I O W A
NEWS
•-
C ounty B ankers A ssociation, Cedar
R apids. He succeeds Sam Jam es of
Springville.
O ther officers are L u m ir S tirtesk y
of Cedar Rapids, vice president; P eter
B ailey of Cedar Rapids, secretary; and
F ra n k L indahl of W alker, treasu rer.
B ailey w as reelected.
Hancock Office
L ast m onth th e Avoca State B ank
opened an office a t Hancock. The new
office w ill be in charge of R ichard
(Dick) Coe, form er dep u ty county
clerk, a t th e Avoca court house th e
p ast eight years.
Since th e first of th e y ear Mr. Coe
has been w orking in th e b ank in
Avoca gettin g acquainted w ith his new
duties.
The b ank is located in th e building
form erly used by th e H ancock b ank
before it w en t out of business about
eight y ears ago. T he ban k is equipped
w ith m odern facilities and fu rn itu re.
A reg u lar business w ill be carried on.
The building ow ned and occupied by
Wr. D. H an na & Com pany, B urlington,
has been ta k e n over by th e g overn
m en t an d w ill be razed to m ake room
for a new post office. The firm w ill
soon m ove to q u a rte rs in th e F a rm e rs
& M erchants B ank building.
A t th e a n n u al m eeting of th e Iow a
S tate B ank, F o rt M adison, F rank H.
H esse, fo rm erly vice president, w as
elected p re sid e n t to succeed T. T.
H itch, w ho has retired .
John WT.
Sm art w as elected vice p resid en t and
director. Laura Mae P eterson and
J en n ie Joh nson w ere m ade a ssista n t
cashiers.
All b an k s in F ort Maclison now pay
one p e r cent in te re st on deposits.
A t th e S ecu rity State B ank, K eo
k u k p re fe rred has been reduced to
$10,000. It w as o riginally $50,000.
Elected President
A t a m eeting of th e b oard of d irectors
George J. M uller w as elected p resid en t
of th e N odaw ay V alley N ational Bank,
Villisca, to succeed th e late F. F.
Jones.
Mr. M uller, w ho is p ro p rie to r of
th e George J. M uller store, fo rm erly
w as vice p re sid e n t of th e bank. He
is a v e te ra n b u siness m an and has
served tw o te rm s as cham ber of com
m erce president.
Mr. Jo n es died Jan. 30. H e w as
p re sid e n t of th e b a n k from th e tim e it
opened, M arch 4, 1934, u n til his death.
Not a Gallup Poll
BY ACTUAL COUNT, more
than 15% of all the banks in
the State of Iowa enjoy
SCARBOROUGH SERVICE
on Bankers Blanket Bonds,
b ecause the
PEERLESS CASUALTY
COMPANY
offers:
Security
Broader Contracts
Important Savings
In Premiums
AND b ecau se Scarborough
Loss Prevention Service helps
the b anker prevent losses,
thus keeping rates at a mini
mum.
For peace of mind, inguire of
Linn County Meeting
E m e ry J. M iller of M arion w as
elected 1941 p resid en t of th e L inn
Y O U R STATE BANKERS A S S O C IA T IO N
O FFIC IA L SAFE, V A U L T A N D
TIM ELOCK EXPERTS
First National Bank Bldg................................Chicago
W ard M acfadden, Iow a R epresentative
Valley Bank Bldg..................................... Des Moines
F. E. DAVENPORT & CO.
OMAHA
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Federal Reserve Bank of St. Louis
March 1941
62
MERCHANTS
D eposits w ill be accepted and loans
and a reg u lar b anking business w ill
be conducted.
MU T U A L
BONDING
COMPANY
In c o rp o ra te d 1933
Home Office
VALLEY B A NK BU ILDING
Des M oines, Iowa
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T his is Iow a’s oldest surety com pany.
A progressive com pany w ith e x p eri
enced, conservative m anagem ent. W e
are p ro u d of o u r h u n d re d and fifty
b a n k agents in Iowa.
T o be the exclusive re p re se n tativ e of
this com pany is an asset to y our bank.
•
©
W rite to
E. H. W A R N E R
Secretary and M anager
South Dakota
Farm Mortgages
for Sale
Security located in all sections
Nevada Meeting
An inter-county m eeting at Nevada
w as atten d ed by 114 bankers, assist
ants, state officers and guests. Among
the d istinguished speakers upon the
a fte r d in n er program , w hich w as p re
sided over by L. R. B assett of the Ne
vada N ational Bank, w ere H. R.
Young, p resid en t and F ra n k W arner,
secretary of th e Iow a B ankers Asso
ciation, R alph L. Bunce, deputy su p er
in te n d en t of banks, M elvin C. Berkley,
m em ber of Group 6 of th e “N ational
D efense Loan C om m ittee” and H arold
C henhall, inspector W age and H our
D ivision for Iowa.
Mrs. Swîler Dies
Mrs. M ary F. Swiler, 67, pro m in en t
resid en t of B u rlington and w ife of
George C. Swiler, presid en t of th e
B urlington Savings Bank, died at h er
hom e last m onth.
She had been in poor h ealth for
m ore th a n tw o years, and confined
to h er hom e for about th ree m onths.
H er condition becam e m ore serious
recen tly and w as aggravated by h eart
attacks.
Mrs. Sw iler w as born in Springfield,
Illinois, Septem ber 20, 1873, the d augh
te r of Mr. and Mrs. T hom as J. Hudson.
H er fath er w as general traffic m anager
of th e Illinois C entral railroad. W hen
a girl she moved, w ith h er parents,
to Chicago, Illinois. She attended St.
M ary’s g irls’ school at K noxville, Illi
nois. In Chicago, on October 10, 1900,
she w as un ited in m arriage w ith
George C. Swiler, who, at th a t tim e,
w as identified w ith th e D rovers N a
tio n al Bank.
T hey came to B urlington in 1904
w hen th e B urlington Savings B ank
w as first organized, Mr. Sw iler being
one of the original organizers.
of the State. Note and mortgage
Banker Dies
amortized over 10 years at 4
A. F. G reenw aldt, presid en t of the
F irs t State Bank, Coon Rapids, died
last m onth a t a hospital in Carroll.
He cam e to th e F irs t S tate of Coon
R apids from M anning, thirty-tw o
y ears ago, w here he had been con
nected w ith the G erm an Savings Bank.
Mr. G reenw aldt w as 77 y ears of age
a t th e tim e of his death.
per cent interest. Conservative
loans.
Will sell one or all—
no discount.
Write
Davenport Election
RURALCREDIT BOARD
Pierre, South Dakota
N orthw estern B anker
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Federal Reserve Bank of St. Louis
March 1941
Officers and directors of th e D aven
p o rt B ank & T ru st Com pany w ere all
re-elected a t th e an n u al m eeting.
T he an n u al m eeting of stockholders
w as held, and th e follow ing directors
w ere re-elected: E. P. A dler, V. O.
Figge, J. L. H echt, J. M. H utchinson,
C harles J. Johnson, Joseph S. Kim m el,
Dr. F red erick H. Lamb, H a rry E. Littig, H erm an Staak, Dr. K uno H.
Struck, K arl P. Teske, Cable G. Yon
M aur, Thom as J. W alsh and A tto rn ey
C. D. W aterm an.
Board m em bers th en m et and
elected th e follow ing officers:
E. P. A dler, president; V. O. Figge,
executive vice president; Dr. K uno H.
Struck, vice president; H erm an Staak,
cashier; A. H. H iegel and F red Gruenwald, a ssistan t vice presidents; E d g ar
H. R unberg and A lbert P. W olters, a s
sistan t cashiers; E rn e st H. K etelsen,
auditor.
J. M. H utchinson, tru s t officer; H e r
b e rt W. B raack, A. P. E indt, K enneth
C. H artm an and E d w ard L. Carm ody,
a ssistan t tru s t officers.
NORTHW ESTERN
DIGEST
BANKER
(C ontinued from page 17)
form s to me each day. If he has
nothing to rep o rt he dates and
signs th e blank and sim ply w rites,
‘N othing.’
“We have thirty-five contact em
ployes w ho hand in these reports.
Each day we have from th irte e n to
tw en ty ‘blan k s.’ T hat is all rig h t
because we have im pressed on the
tellers th a t th ey are not d u ty bound
to go out of th e ir w ay to find som e
th in g to report. N atu rally some tu rn
in m ore ‘n o th in g ’ rep o rts th a n o thers
and th a t is revealing to the m anage
m ent, too.
“F ro m these daily rep o rts we began
to find out a lot of things we d idn’t
know, m any things we probably never
w ould have h eard about.
“Good w ill calls are m ade on the
b a n k ’s tim e, of course. B ut even w ith
th e forty-hour w eek th ey do n ot ru n
into overtim e. Tellers re p o rt at 8:30
in th e m orning, take 30 m in u tes for
lunch and usually are th ro u g h by
th ree o’clock or earlier. T his gives
them th irty h o urs of d u ty up to S a tu r
day. T hey average about five h o urs
on S aturday, so th ey have five h o urs
a w eek for good w ill calls, averaging
about an h o u r to th e call. T hey are
encouraged to m ake one call a day
w hen th ey can, instead of try in g to
m ake several on one day.
“The ‘teller-vision’ plan w as p u t in
effect a t our ban k in Septem ber, 1938.
Now it w orks alm ost autom atically
and at com paratively little expense.
B ut it gets th e job done. It enables
us to determ ine our cu sto m ers’ likes
and dislikes and to do som ething about
them . And w ithal, w hen our cus
63
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to m ers m eet th e ir b a n k e rs at th e w in
dow s th ey m eet friendly, in terested
in dividuals w ho have som ething in
com m on w ith th em .”
NEW S A N D VIEWS
(C ontinued from page 20)
B ank of George, Iow a, believes that:
“In th e fu tu re, som e a d m in istratio n
w hen it looks for its leaders and di
rectors, w ill n o t go to th e U niversities,
b u t w ill go to th e B anks and financial
in stitu tio n s. T h ere th e y w ill find th e
m en and w om en w ho u n d e rsta n d th e
econom ic an d social im plications of
bu sin ess an d w ho are sufficiently well
acq u ain ted w ith th e v ario u s ram ifica
tions of business to be able to find
some p rinciples out of w h ich w e w ill
be able to co n stru ct a policy for Gov
ern m e n t and for society.”
C ertainly th e B rain T ru s t couldn’t
have done an y w orse w ith our eco
nom ic and financial situ atio n th a n
th e y have done, and we know the
b a n k e rs are tra in e d and educated on
how at least to balance a budget.
O. Paul D ecker, vice p resid en t of
th e A m erican N ational B ank & T ru st
Com pany of Chicago, w as one of th e
sp eak ers before th e M id-W inter T ru st
C onference of th e A m erican B ankers
A ssociation a t th e W aldorf; and,
am ong o th er th in g s th a t he em p h a
sized, was:
“A ctually, th e m ost difficult ta sk of
in v estm en t m an ag em en t is d e te rm in
ing w h en to sell securities. No tr u s
tee likes to tak e a loss for its account.
No tru ste e likes to have an u nrealized
loss in its accounts. But, ev ery tr u s
tee realizes th a t if th e re is a h esitation
to tak e a loss, th e re is th e assum ption
of th e definite risk of increased loss in
th e fu tu re. T herefore, it m ay be sug
gested th a t a state m e n t of tr u s t in v e st
m en t policy m ig h t provide th a t w hen
a secu rity is rem oved from an ap
proved list of tr u s t in v estm en ts, all
holdings th ereo f should be review ed in
connection w ith th e in v estm en ts of
th e individual tru s ts of w hich th ey
co n stitu te a p art. If th e req u irem en ts
of an indiv id u al tr u s t are such as not
to p e rm it th e re te n tio n of an u n ac
ceptable security, such a secu rity
should be im m ediately sold.”
F ran k W arner, se cretary of the
Iow a B an k ers A ssociation, in discuss
ing th e W age and H o u r L aw before
G roup One said, “If a b an k m akes a
loan to a m a n u fa c tu rin g in stitu tio n
w hich is p roducing defense m aterial
an d th e com pany does not com ply
w ith th e W age and H o u r L aw th e back
I O W A
NEWS
• -
w ages or overtim e pay w ill be a prior
lien before any b an k loan is repaid.”
It is ju s t a n o th er exam ple of how
tough th e boys a t W ashington can be.
and we u rge upon
those in a u th o rity to discourage in
every w ay any legislation th a t w ould
cu rtail th e activ ity of th e u n it b an k
ing system in th is co u ntry to th e bene
fit of group or b ran ch banking.”
F ritz F ritzson, vice p resid en t and
cashier of th e F irs t N ational B ank of
2. “On Ju ly 1, 1941, th e four year
Sioux City, w as ch airm an of th e reso term of office of D. W. B ates, S uperin
lutions com m ittee of Group One and
ten d en t of B anks w ill end, and the
a t th e ir m eeting last m onth am ong
G overnor w ill appoint a successor to
o th er resolutions w hich w ere adopted
Mr. Bates. It is th e sense of th e b an k
are th e tw o follow ing ones w hich are
ers atten d in g the m eeting of Group
of v ital in te re st to every banker:
One, consisting of eleven no rth w est
1.
“W e believe th a t th e rapid de counties of th e Iow a B ankers Associa
velopm ent of th is co u n try has been
tion, th a t th e G overnor w ill appoint a
aided to no sm all ex ten t by th e u nit new S uperintendent, w ho is an active
b anking sy stem
C H IC A G O L A N D M A R K
— the J o h n G. S h ed d A q u a
riu m . I n the fie ld o f finance,
too, Chicago has her la n d
m arks. O u tsta n d in g am ong
them is T h e N o rth e rn T ru st
C om pany, fo u n d e d in 1 889.
REINFORCING THE CUSTOMER
SERVICE OF OUT-OF-TOWN BANKS
Successful banking, to a great extent,
depends on the assemblage of im por
tant facts and the carefully weighed ap
plication of these facts. Acorrespondent who forms a connection with The
Northern Trust Company broadens
his opportunities for gathering es
sential facts necessary in m eeting
banking and trust problems. From
routine check collections to seasoned
investment information, his problems
meet with friendly, efficient coopera
tion. Thus, the out-of-town banker is
assisted in achieving that complete
ness of service which his customers
always value so highly. Your inquiry
concerning a connection with this in
stitution is solicited.
TH E NORTH E RN
TRUST COMPANY
5 0 S O U T H LA S A L L E S T R E E T , C H I C A G O
Member Federal Deposit Insurance Corporation
★
N orthw estern Banker
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Federal Reserve Bank of St. Louis
March 19J1
64
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IO W A
NEWS
•
W hen it comes to 100 p er cent a t
tendance a t a group m eeting, th e
F a rm e rs T ru st and Savings B ank of
Spencer, Iowa, headed th e list at the
Sioux City g ath erin g last m o n th as
everyone of th e ir officers and em
ployes plus th e w ives w ere “am ong
those p resen t,” including L. A. W itter,
president; R. M. T uttle, vice president;
K. R. T u ttle, cashier; R obert G. Lexvoid, A. J. P rech el, A lv in H an sen , as
sista n t cashiers, and m any others.
T h ere being 21 in all w hich w as a
m ig h ty fine record for group m eeting
attendance.
a n d successful b an k officer, w ho can
fully qualify w ith th e experience and
executive ability dem anded of th e of
fice. T he ap p o in tm en ts of S u p erin
ten d e n t of B anks since th e inception
of th e d ep artm en t have unifo rm ly
gone to m en of w ide b an k in g ex p eri
ence, and w e cannot too stro n g ly u rg e
th a t no change of th is policy be m ade
a t th is tim e of appointing a m an of
w ide executive b an k in g experience.”
J. P. Schutt, p resid en t of th e Valley
S tate B ank of Rock Valley, Iowa, in
responding to th e address of welcom e
a t Sioux City, said, “M aybe if I m ake
as good an address as H o y t Y oung did
in 1937 in Sioux City, I can be elected
p resid en t of th e Iow a B ankers Asso
ciation.”
Of course Mr. S ch u tt said th is in
jest, b u t first of all he is a fine banker,
an d second, he m ade an excellent ad
dress, and th ird , he w ould m ake a
fine p resid en t of th e S tate A ssociation.
Io w a ’s L argest B u sin ess T raining School
Many banks, bond-houses, insurance
companies and other financial insti
tutions employ A. I. B. graduates.
W rite or telephone when you need
efficient office employes.
E. O. FENTON, President
American institute of Business
R alph L. B unce, deputy su p erin
te n d e n t of banks of Iow a in his speech
before 500 b an k ers a t th e Sioux City
group m eeting, said th a t state banks
DES MOINES
10th and Grand
Tel. 4-4203
THE BEST
ADDRESS
Experienced travelers know the value
of stopping at a hotel of distinction.
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Beautifully modernized throughout.
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Federal Reserve Bank of St. Louis
A IR
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O M A H A 'S WELCOME
TO T H E W O R L D !
March 1941
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have over $514,000,000 in deposits
w hich w as th e first tim e in 10 years
th a t th e state banks have exceeded
one half a billion dollars in deposits.
The last tim e w as in 1931 w h en th e y
w ere $549,000,000. T en y ears before
th a t in 1921 th ey w ere $780,000,000.
D uring 1940 loans and discounts in
creased $25,000,000 and also th e re w as
a $27,000,000 increase in cash.
In stallm en t loans and personal loans
in 1940 am ounted to $16,500,000 in
Iow a state banks.
The first ch artered B ank of N orth
A m erica in P hiladelphia founded by
R obert Morris, in 1781, used quill
pens, pigeonhole filing cabinets and
candlelight.
Its doors w ere guarded by th e
w atch m an ’s cum bersom e blunderbus,
its checks w ere paid in Spanish m illed
dollars.
In a replica of th e sm all store in
w hich th e b an k first functioned, re
produced on th e second floor of th e
A tw ater K ent M useum, 15 South 7th
Street, v isito rs now can see th is orig
inal b an king equipm ent and o th er m a
terial.
The m ahogany table and six chairs
w hich Mr. M orris and th e board of di
recto rs used in consultation over fiscal
affairs of th e new U nited S tates Gov
e rn m en t are there. Two sets of scales
show how th e founders of th e in stitu
tion w eighed th e ir gold and silver.
Senator A rthur Capper of K ansas
has proposed an am endm ent to th e
C onstitution w hich w ould lim it th e
office of P resid en t of th e U nited States
to tw o term s. T his has been referred
to th e Com m ittee on th e Judiciary.
W e assum e now th a t F ra n k lin
D elano R oosevelt has bro k en th e 3d
term precedent th a t unless he w an ts
to ru n for a 4th te rm and a 5th te rm
th ere should be no objection to th is
proposed am endm ent by S enator Cap
per.
H arold A bram s of New Y ork has
filed a stockholders su it in F ed eral
C ourt dem anding an accounting of
profits and losses for th e last 10 y ears
of th e T ran sam erica Corporation.
Mr. A bram w as nam ed as d efendant
A. P. G iannini, L. M. G iannini, J. R uss
A very, and o th er officers of th e cor
poration and its subsidiaries.
Mr. A bram s com plained th a t A. P.
G iannini, “im properly w ith d rew $608,000 from a special fund established for
T ran sam erica in 1930 and 1931, and
th a t from 1932 to 1938 th e board of
directors p erm itted him to w ith d raw
an additional $778,470.”
65
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Boone
Officers of th e Boone S tate B ank
and T ru s t Com pany w ere re-elected a t
its 30th a n n u a l m eeting.
Stockholders, m eeting first, reduced
th e n u m b er of d irecto rs from eig h t to
seven. A new m em ber of th e b oard is
F ra n k Judge, elected to succeed L a n t
H. D oran, th e la tte r w ith d raw in g
v o lu n ta rily from th e board for b u si
ness reasons.
A new officer is B ert H olst, w ho w as
elected vice-president to succeed his
fath er, th e late B. P. H olst. T. L. A sh
ford w as re-elected p resident; F ra n k
H ollingsw orth w as re-elected vice
p re sid e n t and R. J. M eyers re-elected
cashier.
Sioux C ity
Sioux C ity’s seven b an k s held th e ir
an n u a l m eetings and th e p resid en ts
and m ajo r officers of all th e financial
in stitu tio n s w ere re-elected.
T he b a n k presid en ts, all re tu rn e d
for one-year term s, are C. R. G ossett,
S ecurity N ational B ank; A. S. H a n
ford, F irs t N ational B ank; C. L. F re d
rickson, L ive Stock N ational Bank;
R. R. B rubacher, Toy N ational Bank;
M. C. Eidsm oe, W oodbury C ounty Sav
ings Bank; Jo h n Scott, M orningside
S tate Bank, and H. H. E pperson, M orn
ingside Savings Bank.
D irectors of th e Live Stock N ational
B ank recognized long-tim e em ployes
in th e a n n u al election.
F ollow ing th e re-election of Mr.
F re d ric k se n as p resid en t and M ark A.
W ilson as vice presid en t, th e d irecto rs
elected W illiam G. Nelson, an em ploye
of th e b an k for 23 y ears and a fo rm er
a ssista n t cashier, to a ssista n t vice
president. W illiam C. Schenk w as
raised from a ssista n t cashier to cash
ier. He has been w ith th e b an k 24
years.
Clifford A. A dam s and Jo h n H av er
w ere elected a ssista n t cashiers. Both
Mr. A dam s and Mr. H av er have been
em ployed a t th e b an k for m ore th a n
10 years.
T he elections w ere conducted a t th e
an n u a l d ire c to rs’ m eetings th a t fol
lowed th e a n n u al sto ck h o ld ers’ m eet
ings in th e banks.
T he officers of th e F irs t N ational
Bank, all of w hom w ere re-elected, are
Mr. H anford, p resident; A. G. Sam and
J. P. H ainer, vice p residents; F ritz
F ritzso n , cashier, and J. T. G rant, J. R.
G raning an d E. A. Johnson, a ssista n t
cashiers.
T he d irecto rs are S. F.
Cusask, W. J. Downey, R. H. Foutz,
Mr. F ritzso n , Mr. H ainer, Mr. H a n
ford, Mr. Sam, C. M. Stilw ill, C. S. V an
E ato n and D avid W. Stew art.
I O W A
NEWS
•
In addition to Mr. Eidsm oe, p resi
dent, th e directors of th e W oodbury
C ounty Savings B ank re-elected th e
o th er officers, C. T. M cClintock, vice
p resid en t and cashier; L. R. Manley,
vice president; A. L. Cheseboro, as
sista n t cashier, and A. R. M iller, assis
ta n t cashier, and th e directors who, in
addition to Mr. Eidsm oe, Mr. M anley
and Mr. M cClintock are Jesse M ar
shall, E. S. G aynor, Otto Bridges, C. T.
H opper an d C. F. Seibold.
M orningside S tate B ank re tu rn e d its
officers and directors. T hey are: Mr.
Scott, president; J. E. DeW alt, vice
president; W. L. A yers, cashier, and
C. D. N issen, a ssistan t cashier. L. E.
A yers is th e fifth director.
A t th e M orningside Savings B ank
th e re-elected officers an d directors are
Mr. E pperson, president; R. E. Siman,
vice president; A. J. B ertelsen, cashier;
K. A. Scheibe, a ssistan t cashier, and
D. S. P ru sin er, th e additional director.
The S ecurity B ank officers and direc
to rs given new term s w ere Mr. Gos
sett; B. M. W heelock and A lbert C.
E ck ert, vice presidents; R. E a rl Brow n,
cashier; D. B. Severson, F ra n k H.
Abel, A lvin G. N elson and R obert W.
Lewis, a ssistan t cashiers, and Paul
B ekins, H u b ert H. E verist, Mr. Gos
sett, W illiam M cFarlane, E d C. P alm er,
George L. Booth, Otis P. Booth, H aro ld
A. Jacobsen, H ow ard V. M artin an d
H a rry P. P ra tt, all directors.
T he officers of th e Toy N ational
Bank, all re-elected, are Mr. B ru
bacher; J. W. Van Dyke, E a rl A. Hoff
m an and E. H. Spiecker, vice p resi
dents; E. E. E rickson, vice p re sid e n t
and cashier; C. A. Johnson, J. W illiam
BANKS FOR SALE— We have two
Northern California banks for sale. One
in a rapidly growing industrial commu
nity with resources of more than one mil
lion dollars. Forty-five thousand dollars
will purchase the controlling interest in
this bank. A bank loan for approxi
mately one-half of the forty-five thou
sand dollar purchase can be arranged.
The second is a fine little bank in a
rich agricultural community. Control
can be obtained for between nineteen and
twenty thousand dollars.
It has re
sources of about four hundred thousand
dollars.
Both banks are perfectly sound. In
spection of securities and loans would
not only be requested but desired. Both
banks are desirable institutions. The
reason for selling the larger bank is
death; in the smaller bank continued
illness.
All correspondence treated confiden
tially. Address Service Department, Coast
Banker, 255 California Street, San Fran
cisco, California.
cN ew liorks S pu lar
HOTEL
LINCOLN
4 4 ™ TO 4 5 th S T S .A T 8 ™ A V E .
OUR CHOICEST ROOMS From
1400 ROOMS each with
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Culinary Art Exhibition.
Jp , ,
MARIA KRAMER
PRESIDENT
John L. Horgan
Gen. Mgr.
HOTEL EDISON
SAME OWNERSHIP
l i l l K l I (111 m u i
IN T H E C E N T E R OF MID-TOWN NEW YORK
Northwestern Banker March 1941
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Federal Reserve Bank of St. Louis
66
•
Van Dyke an d J. D. Shinkle, Jr., a s
sista n t cashier, an d E ug en e Kelly, J.
W. K indig, George R. Call, F lorence
H. Toy, Mr. B rubacher, J. W. V an
Dyke, Mr. Hoffm an, Mr. E rick so n and
J. W illiam V an Dyke, all directors.
Dubuque
Officers and d irecto rs of th e A m er
ican T ru s t and Savings B ank w ere
elected a t th e a n n u a l sto ck h o ld ers’
m eeting.
C harles J. S chrup an d D. W. E rn s t
w ere re-elected p re sid e n t an d execu
tive vice president, respectively.
O ther officers nam ed w ere A lb ert C.
L antzky, vice president; Roy F. Glab,
cashier; an d A rth u r P. M elchior and
C. J. K leinschm idt, a ssista n t cashiers.
The stockholders nam ed th e follow
ing directors: C harles J. Schrup, D.
W. E rn st, A lb ert C. L antzky, Otto F.
H enker, and B. J. Oswald.
Mr. L an tzk y fo rm erly w as cashier,
and Mr. Glab form erly w as a ssista n t
cashier.
S A F E T Y IN
INVESTMENT
A ccounts Insured Up To
$ 5 ,0 0 0 .0 0
f i ñ §
W IFeder
ederal Savincs
and
Loan A ssociation
O f S t *»a u i
350 C edar St.
St. P au l, M inn.
Jl& uxeA t Q o& t
Our p olicy provides a m axim um
assessment of 2 Vi°/0 in Zones
One and Tw o— and 5 x/z % in
Zone Three (W estern Iow a).
Hawkeye Mutual Hail
Insurance Association
Carver Bldg.
Fort Dodge, Iowa
A d v e r t i s i n g
D.
P l a n s
for
R . W E S S L IN G . P R E S ID E N T
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
March 1941
I O W A
NEWS
•
Belle Plaine
Progress in Nevada
The an n u al m eeting of th e stock
holders of th e Citizens N ational B ank
w as held recently. P aul G roszkruger
w as re-elected p resid en t of th e organ
ization.
T. F. M aher, one of th e directors,
w as n am ed vice p resid en t to fill the
vacancy m ade by th e death of E d w ard
Nichols, and Jo h n G. N ichols w as
elected to th e board of directors.
T he o th er officers w ho w ere re-elec
ted w ere: A. J. Bird, cashier an d C har
lotte Skordahl, assista n t cashier. The
o th er directors are N ath an B. W illiam s
and W esley Mansfield.
T he N evada N ational B ank has m ade
some real progress since its opening
seven y ears ago. T he b an k w ill be
seven y ears old on M arch 15, th is year.
O pening w ith deposits of $500,000, th e
N evada N ational now has deposits of
m ore th a n $1,250,000. Capital a t open
ing tim e w as $60,000, w hich has since
been increased to $124,000. D uring th e
p ast seven y ears earn in g s have been
$13,400 p er year, dividends of $3,400
p er year, and $10,000 has been placed
in surplus. A n eight p er cent divi
dend w as paid on th e com m on stock
of th e N evada N ational a t th e end of
1940.
County Meeting
The B uchanan County B ankers A s
sociation held a m eeting a t th e Gedney
Hotel, Independence, recently. E lec
tion of officers w as held and th e resu lt
w as as follows:
W. W. B lasier, p resid en t of F arm ers
S tate Bank, Jesup, president; A. H.
N iem an, p resid en t of F a irb a n k State
B ank, F airb an k , vice president; J. S.
L u th er, m anager of W in th ro p B ranch
of F a rm e rs S tate Savings B ank, In d e
pendence, secretary, and P. E. Sorg,
a ssista n t cashier, F a rm e rs State Sav
ings B ank, Independence, treasu rer.
Grinnell
One m ore directo r w as added to th e
board and an o th e r new officer elected
a t th e noon d in n er m eeting of th e
stockholders of th e G rinnell State
Bank.
H ugh C. McCleery of L aurel, a for
m er officer of th e bank, w as added to
th e b oard of directors, b rin g in g th e
m em bership to seven. O ther directors,
all re-elected, are: A. J. Blakely, Jo h n
E vans, C. A. F rasier, L. M. L anning,
R aym ond Pilgrim and J. G. Shifflett.
L.
L. F ry , m anager of th e Malcom
office of th e G rinnell S tate Bank, w as
prom oted to th e position of a ssistan t
cashier. He w ill rem ain a t Malcom.
O ther officers w ere re-elected for th e
c u rre n t y ear as follows: C. A. F rasier,
p resident; A. J. Blakely, vice p resi
den t and ch airm an of th e board; L. M.
L anning, cashier; H elen H argrave, as
sista n t cashier.
B a n k s
and
Trust
C o m p a n i e s
< d V \o b zi± t (J ovjcl
Wegman Buys Bank
Leo J. W egm an, form erly state
tre a su re r b u t now p resid en t of th e
C itizens Savings B ank of A nam osa,
to g eth er w ith his son-in-law, Mr. Bird,
have p u rchased m ajo rity in te re st of
th e D yersville N ational B ank of Dyersville, Iowa, of w hich th ey have already
tak en over th e m anagem ent w ith Mr.
B ird as chief executive.
Jones Sells Tama Interests
F. A. Jones, organizer and for m any
y ears p rincipal ow ner and chief execu
tive of th e T am a S tate B ank of Tam a,
has sold m ajo rity in te re st of his bank
to H. H. Peyton, p resid en t of th e P io
neer N ational B ank of D uluth, M inne
sota and his son Lew is R. Peyton. The
la tte r w ill be actively identified w ith
th e T am a b an k in executive capacity.
Mr. Jones w as influenced to consider a
sale in o rder to give his undivided a t
ten tio n to his extensive real estate in
terests. He now resides in G rinnell,
w here he recen tly b u ilt a fine m odern
home. T he personnel of th e Tam a
State B ank w ill be otherw ise u n
changed.
Lovett Leaves Fairfield
H en ry Lovett, pro m in en tly id en ti
fied w ith Iow a ban k in g in te re sts for
th e last several y ears an d m ost
recen tly executive vice p resid en t of
th e F irs t N ational B ank of Fairfield,
has resigned his position to accept th e
executive vice presidency of th e F irs t
G ranite City N ational B ank of G ranite
City, Illinois, w hich is a four m illion
dollar in stitu tio n . In an ticip atio n of
this m ove Mr. L ovett recen tly sold th e
D ecatur C ounty S tate B ank of Leon,
and th e C larke County State B ank of
Osceola, of w hich banks h e w as p rin
cipal owner.
67
•
I O W A
NEWS
•
Washington
National Bank of Detroit
S tockholders of th e N ational B ank
of W ash in g to n held th e ir a n n u a l m eet
ing and re-elected th e five d irecto rs of
th e bank, w ho are R. E. D ougherty,
C arlton C. W ilson, F re d L. Stew art,
George E. G ilbert an d F ra n k C. Crone.
The board of d irecto rs m et to o rg an
ize for th e new y e a r and re-elected all
th e officers of th e bank, including R.
E. D ougherty, p resident; F ra n k C.
Crone, vice p resident; E. F. Miick,
cashier; C. P. W eldin and B. M. W hitehead, a ssista n t cashiers; L ucy F.
D em psey and R. M. A nderson, tellers.
P rom otions w ere announced by W al
te r S. McLucas, ch airm an of th e board
of th e N ational B ank of D etroit, afte r
a m eeting of th e board of directors
held recently. T he an n u al stockhold
e rs’ m eeting, at w hich all directors
w ere re-elected, preceded th e directo rs’
m eeting.
W. E arle Blakeley, D ennis A. D arin,
E a rl J. Failor, and R ay H. M urray
w ere all prom oted vice presidents.
O ttm ar A. W aldow, prom oted from
au d ito r to com ptroller, has been au d i
to r of th e b an k since 1933.
B ern h ard C. Schum acher, prom oted
from assista n t cashier to assista n t vice
president, joined th e b ank in 1933 and
becam e a ssistan t cashier in 1936.
R obert P. Campbell, assista n t au d i
tor, w as prom oted a ssistan t com ptrol
ler.
Northern Trust Promotions
T he board of d irecto rs of th e N o rth
ern T ru s t Com pany, Chicago, a t th e ir
recen t a n n u a l m eeting m ade th e fol
low ing prom otions:
Jo h n M. M axwell from second vice
presid en t to second vice p resid en t and
m an ag er bond d ep artm en t; W a rre n F.
Sarle from a ssista n t m an ag er bond de
p a rtm e n t to second vice president;
A lford J. B aschen from a ssista n t m a n
ager bond d e p a rtm e n t to second vice
president; A lan R. Kidd from a ssista n t
cash ier to second vice p resident; M aur
ice E. G raves from a ssista n t com ptrol
ler to second vice p resid en t and assis
ta n t com ptroller; an d A rth u r J. O’H ara
from m an ag er in v estm en t re search to
second vice p re sid e n t an d m an ag er in
v estm en t research.
E lected to th e official staff of th e
N o rth e rn T ru s t w ere E d w ard D. McGrew, a ssista n t m an ag er bond d e p a rt
m ent; D onald J. McDonald, a ssista n t
au ditor; an d W illiam M. H addow , a s
sista n t cashier. All o th er officers w ere
re-elected.
Chemical Bank
A t th e a n n u a l o rganization m eeting
of th e board of d irecto rs of th e Chem i
cal B ank & T ru st Com pany, N ew York,
A rth u r P. Caldwell, Jr., fo rm erly an
a ssista n t vice president, w as appointed
a vice p resid en t of th e bank. Mr. Cald
w ell holds a B. S. degree in E n g in e e r
ing from H a rv a rd U n iv ersity and
M assachusetts In s titu te of T echnol
ogy. He also holds a C. P. A. degree
and, for m an y years, w as associated
w ith th e firm of L ybrand, Ross Bros.
& M ontgom ery. He has been w ith the
C hem ical B ank since May, 1932.
A t th e sam e m eeting, th e follow ing
fo rm er a ssista n t secretaries w ere ap
pointed a ssista n t vice presidents: W il
liam S. R enchard, H ow ard W. McCall,
Jr., H arriso n D. B lair an d K ingsbury
S. N ickerson.
First National, Chicago
E d w ard E. B row n, p resid en t of The
F irs t N ational B ank of Chicago, a n
nounced th a t all directors of th e b ank
w ere re-elected a t th e an n u al stock
h o ld ers’ m eeting. A t th e subsequent
m eeting of th e board th e follow ing pro
m otions w ere made:
T hom as H. Beacom, Jr., A ustin J e n
ner, and H orace O. W etm ore w ere
elected vice presid en ts having p rev i
ously been a ssistan t vice presidents.
R aym ond H. B ecker w as elected as
sistan t vice presid en t from assista n t
cashier; P. L. Stevenson and A. S.
T horw aldson w ere elected tru s t offi
cers, having form erly been a ssistan t
tr u s t officers.
The follow ing new officers w ere
elected, all being prom otions from th e
clerical staff of th e bank:
C harles W. B artell, assista n t m an
ager, Real E state D epartm ent; E dw ard
F. B lettner, Jr., a ssistan t tru s t officer;
P au l E. F a rrie r, a ssistan t tru s t officer;
Joseph J. K aberna, assista n t cashier;
C larence J. R uethling, a ssistan t cash
ier, and L eroy F. W in terh alter, as
sista n t cashier.
American National, Chicago
T he dividend rate on th e capital
stock of th e A m erican N ational B ank
and T ru st Com pany of Chicago w as in
creased to $8.00 an n u ally th ro u g h the
action of th e b a n k ’s board of directors
at its an n u al m eeting. A $4.00 sem i
a n n u al dividend w as declared out of
th e b a n k ’s earnings for th e last six
m o n ths of 1940, payable $2.00 on J a n
u a ry 15 to stockholders of record J a n
u a ry 14, and $2.00 on A pril 15 to stock
holders of record A pril 14. The stock
has been on a $6.00 an n u al dividend
basis since 1937.
T he b an k h ad a satisfacto ry y ear in
1940, rep o rtin g $332,005 in n et earnings
Banks Sold or Bought!
quietly, quickly and in a personal manner
JAY A. WELCH
Haddam, Kansas
“35 years Practical Banking
Experience. ”
r
home
Jj
tTDERAL S a v in g s
AND LOAN ASSOCIATION
OF DES MOINES
— our Federally Insured up to
$5,000 savings accounts are
the solution to your invest
ment and trust problems.
Current dividend 3^4 percent.
Statement on request.
904 Grand Avenue
Des Moines, Iowa
FAR MORE TO OFFER ROT
FAR FROM BEING EXPENSIVE
Opportunities for all sports
and recreations. Curative min
eral waters. Air conditioned
sleeping rooms ... Write for
information or reservations.
ELMS
HOTEL
Northwestern Banker
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Federal Reserve Bank of St. Louis
March 19bl
»
€8
a fte r reserv es for contingencies an d
p re fe rred dividends, and n o t including
profits realized on th e sale of secu ri
ties w hich w ere credited to securities
d epreciatio n reserve. T his com pares
w ith $295,687 n e t earn in g s in 1939.
The b an k also show ed a su b stan tial
g ro w th in 1940, re p o rtin g $79,089,872 in
deposits on D ecem ber 31, com pared
w ith $69,711,148 on D ecem ber 30, 1939.
K eeping pace w ith th is grow th, th e
b a n k ’s capital stru c tu re w as b road
ened last m o n th th ro u g h doubling th e
b a n k ’s su rp lu s by th e tra n s fe r of $1,000,000 from undivided profits and ex
cess reserv e accum ulations, brin g in g
th e su rp lu s figure up to $2,000,000 and
giving to tal capital and su rp lu s of $3,600,000. An additional $50,000 w as also
tra n sfe rre d to p re fe rred stock re tire
m en t fund, m aking th a t fund now to tal
$150,000.
Fooling Him
Urm a: “H as Jack ever kissed you
ag ain st y o u r w ill?”
Helen: “No; b u t he th in k s he has.”
Like a Rock
R iding In stru cto r: “Did you enjoy
y o u r horseback rid e?”
B etty Co-ed: “Sorta. B ut how could
an y th in g full of hay be so h a rd ? ”
A Clear Conscience—
The sto ry is th a t a good R ep resen ta
tive w as sleeping peacefully at hom e
w hen his wife w oke him saying: “John,
John, w ake up. T here are thieves in
th e house.” He v ery sleepily replied:
“You m u st be w rong, darling. T here
m ay be thieves in th e Senate, b u t not
in th e H ouse.”
Mistaken Identity—
“Oh, w h at a strange-looking cow!”
exclaim ed th e sw eet young th in g from
Chicago. “B ut w hy h a sn ’t she any
h o rn s?”
“W ell, you see,” explained the farm
er, “some cows is born w ith o u t h o rns
and n ever had any and o thers shed
th eirs, and some we dehorn, and some
breeds a in ’t supposed to have horns
at all. T h ere’s a lot of reasons w hy
some cows a in ’t got horns, b ut the
reason w hy th a t cow a in ’t got h o rn s is
because she a in ’t a cow—sh e’s a horse.
A Hard Job—
T here w as a dear little baby in th e
train , and an old gentlem an opposite
said: “A fine child m adam . I tru s t he
w ill grow into an u p rig h t and h o n o r
able m an.”
“Yes,” sm iled th e m other, “b u t it
w ill be ra th e r difficult.”
“As th e tw ig ’s bent, so th e tre e ’s in
clined,” m u rm u red th e old gentlem an
pom pously.
“B ut th e trouble is,” said th e m other,
“th e tw ig is b en t on being a g irl.”
You're Right—
Freddie: “Pa, w h a t’s a p ara site ? ”
Papa: “A parasite, son, is a m an w ho
w alks th ro u g h a revolving door w ith
out doing his share of pushing.”
An Honest Gold Digger—
A b u rglar, en terin g th e hom e of an
heiress, w as about to search th e usual
hiding places for cash, w hen she dis
covered him.
“H ave no fear, lady, I don’t w an t
your life,” he assu red her. “I ’m only
after yo u r m oney.”
“Oh, go away!” she answ ered. Y ou’re
ju st like th e rest of them , only m ore
fra n k .”
tfndex Go ¿Advertisers
A
A l l e n W a l e s A d d i n g - M a c h i n e C o r p ............ 71
A l l i e d M u t u a l C a s u a l t y C o m p a n y ............... 26
A. C. A l l y n a n d C o m p a n y ................................... 32
A m e r i c a n I n s t i t u t e o f B u s i n e s s .................... 64
A m e r i c a n N a t i o n a l B a n k a n d T r u s t C o . . 60
It
...........
F . E . D a v e n p o r t a n d C o m p a n y ................... 36-6 1
D es M o in es B u ild in g L o a n a n d S a v in g s
A s s o c i a t i o n ............................................................ 68
D r o v e r s N a t i o n a l B a n k ...................................... 56
E
E l m s H o t e l ................................................................. 67
E m p l o y e r s M u t u a l C a s u a l t y C o m p a n y . . 68
E p p l e y H o t e l s .......................................................... 64
F
F e d e r a l D i s c o u n t C o r p o r a t i o n .......................
F ir s t F e d e ra l S a v in g s a n d L o a n A ssn .. .
F i r s t N a t i o n a l B a n k o f S i o u x C i t y .............
F i s h e r C o m p a n y .....................................................
G
G e n e r a l M o t o r s A c c e p t a n c e C o r p .................
H
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
March 19hl
32
66
52
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31
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H a w k e y e M u tu a l H a il In s u r a n c e C orp..
H o m e F e d e ra l S a v in g s a n d L o a n A ssn..
H o m e I n s u r a n c e C o m p a n y ..............................
H o t e l L i n c o l n ............................................................
M o in es
I
N ational
Bank
and
T r u s t C o m p a n y ..............................
72
I o w a I n v e s t m e n t B a n k e r s A s s o c i a t i o n . . 28
I o w a - N e b r a s k a B a n k D i r e c t o r y .................. 69
J
J a m i e s o n a n d C o m p a n y ......................................
..................
B a n k e r s T r u s t C o m p a n y ................................50-5 1
V. W . B r e w e r C o m p a n y ...................................... 33
B u r r o u g h s A d d i n g M a c h i n e C o m p a n y . . . 36
C ..
C e n t r a l L i f e A s s u r a n c e C o m p a n y ............... 22
C e n t r a l N a t i o n a l B a n k a n d T r u s t C o .. . . 3
C e n t r a l S u r e t y a n d I n s u r a n c e C o r p ............ 24
C i t y N a t i o n a l B a n k o f C l i n t o n ....................... 58
C i t y N a t i o n a l B a n k a n d T r u s t C o m p a n y . 38
C o m m e r c i a l I n v e s t m e n t T r u s t , I n c ............ 33
C ontin en tal-U lin o is N atio n al B an k and
T r u s t C o m p a n y .................................................. 46
C o n t i n e n t a l N a t i o n a l B a n k o f L i n c o l n . . 39
L>
Iow a-D es
66
67
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65
45
L
G e o r g e L a M o n t e a n d S o n .................................
L e s s i n g A d v e r t i s i n g C o m p a n y ....................
Live S to ck N a tio n a l B a n k — C h icag o . . . .
L i v e S t o c k N a t i o n a l B a n k — O m a h a ..........
L ive S to c k N a tio n a l B a n k — S ioux C ity . .
5
68
59
37
40
M
M erch a n ts M u tu al B o n d in g C o m p an y . ..
M e r c h a n t s N a t i o n a l B a n k .................................
M i n e a p o l i s - M o l i n e P o w e r I m p l e m e n t Co.
M i n n e s o t a C o m m e r c i a l M e n ’s A s s n ............
N
N o r t h e r n T r u s t C o m p a n y .................................
N o rth w e s te r n N a tio n a l L ife In s u ra n c e
C o m p a n y .................................................................
62
2
44
25
63
24
«
O m a h a N a t i o n a l B a n k ......................................... 19
P
P h i l a d e l p h i a N a t i o n a l B a n k ............................ 42
R
...........
R u r a l C r e d i t B o a r d — P i e r r e , S. D ............... 62
S
S c a r b o r o u g h a n d C o m p a n y .............................. 61
S u c c e s s f u l F a r m i n g ............................................. 21
U
U n i t e d S t a t e s C h e c k B o o k C o m p a n y . . . . 38
U n i t e d S t a t e s N a t i o n a l B a n k o f O m a h a . 34
V
V a l l e y S a v i n g s B a n k ........................................... 5 3
W
W a n t A d ...................................................................... 65
C h a r l e s E . W a l t e r s C o m p a n y ......................3 7-5 8
J a y A. W e l c h .............................................................. 67
W e s s l i n g S e r v i c e s ................................................ 66
W e s t e r n M u t u a l F i r e I n s u r a n c e C o .......... 27
69
N E W
1941
lOUlfl - NÊBRRSHfl
BflllK DIRECTORY
P u b lish e d by the N O R T H W E S T E R N R A N K E R
Des M oines
T h e n ew 1 9 4 1 e d itio n o f th e IowaN ebraska B an k D ir e cto r y w ill h e ready
so o n . In it y o ii'll find th e m o st c o m
p le te and latest in fo r m a tio n o n Iow a and
N eb rask a b an k s, in c lu d in g p e r so n n e l,
cap ital, su r p lu s, d e p o sits, lo a n s an d d is
c o u n ts, b o n d h o ld in g s, co r re sp o n d en t
h an k s and o th er v a lu a b le data.
"
7
“An excellent directory.”
B. C. Hewlett, cashier, F irs t S ta te Bank, Belmond, la.
^
“We su b stitu te your excellent directory for th e large directory.”
T. J. Poague, cashier, S ta te Bank of L iberty, Nebr.
J lih
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9t”
“I t ’s th e best little directory published and ju s t th e rig h t size so one
can c arry it in th e pocket daily.”
H. J. Lamp, vice president, B ennett S ta te Bank, B ennett, la.
“Your bank directory is a very handy and complete book.”
Sim Bonsall, cashier, L exington S ta te Bank, Lexington, Nebr.
Iow a-N ebraska B an k D irecto ry
527 Seventh Street
Des M oines, Iow a
__________________________, 1941
G en tlem en :
Use the handy coupon at the right
Please se n d __________copies of y our 1941 Iow a-N ebraska B ank
D irecto ry to us, and we w ill re m it at the ra te of $2 p e r copy
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Com pany.
Officer__
City
State.
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
March 19bî
70
I n the DIRECTORS' ROOM
Nautical
All Kinds
“W here did you go on those w haling
trip s w ith y o u r fa th e r? ”
“U sually to th e w oodshed.”
“You say you come from D etroit,”
said th e doctor to his fellow passenger.
“T h a t’s w here th ey m ake autom obiles,
isn ’t it? ”
“Sure,” replied th e A m erican w ith
some resen tm en t. “W e m ake o th er
th in g s in D etroit, too.”
“Yes, I know ,” rep o rted th e doctor.
“I ’ve rid d en in ’em .”
Nerve
“T he b ra v e st m an I ev er k n ew ,” said
th e explorer, “w as th e chap w ho took
a tax i to th e b a n k ru p tc y court, and
then , in stead of p aying his fare, in
vited th e d riv e r in as a cred ito r.”
Fame
Blinks: “W ouldn’t you like to be
fam ous enough to get y o u r p ictu re on a
ten th o u san d dollar bill?”
Jinks:
“No, I ’d ra th e r be lucky
enough to get m y h an d s on it.”
—Exchange.
Timing
“I w o n ’t get m a rrie d u n til I find a
girl like G randpa m arried .”
“Huh! T hey don’t m ake them like
th a t th ese days.”
“T h a t’s funny. He only m a rrie d h e r
yesterd ay .”
Copyright
Prof: (T aking up quiz pap er) “W hy
th e quo tatio n m ark s on th is p ap er?”
Student: “C ourtesy to th e m an on
m y left.”
Ask Me
Salesm an: “Boy, I w a n t to see som e
one a ro u n d h ere w ith a little a u th o r
ity .”
Office Boy: “W ell, I have abo u t as
little as anyone, w h a t is it you w a n t? ”
Correspondent
“H ow are th e fish in th ese p a rts? ” I
asked. T he an cien t fisherm an looked
up w ith a sigh: “W ell,” said he, “I
really don’t know . F o r a w eek I ’ve
dropped th em a line each day, b u t so
fa r have h ad no rep ly .”
Cheap, Even
“Did you know , dear, th a t th a t tu n
nel w e ju s t passed th ro u g h w as tw o
m iles long and cost $12,000,000?” asked
th e young m an of his sw eetheart.
“Oh, really ?” she replied, sm oothing
h e r disheveled hair. “W ell, it w as
w o rth it, w asn ’t it? ”
Counterfeit
Doctor: “H ow is th e boy w ho sw al
low ed th e half-dollar?”
N urse: “No change yet, D octor.”
N orthw estern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
March 19'il
In a W hirl
“Do you rem em ber w h en w e m et in
th e revolving door?”
“Goodness, yes. T h a t w as w hen we
sta rte d going aro u n d to g eth er.”
Those Dirty Blues
Diner: “W h at’s th e difference be
tw een th e blueplate special and the
w h itep late special?”
W aiter:
“The w h iteplate special
costs a nickel m ore.”
Diner: “Is th e food b e tte r? ”
W aiter: “No, b u t w e have to w ash
th e w h ite plates.”
Clever Guy
Betty: “I believe m y husb an d is the
m ost generous m an in th e w orld.”
Jane: “W hy do you say th a t? ”
Betty: “I gave him a dozen neck
ties for C hristm as and he gave all of
th em to some ch arity organization.”
Goodbye Now
“H oney, w e’re going to have a sw ell
tim e tonight. I have tw o tickets to a
lectu re.”
“B ut I don’t like lectu res.”
“I know, b u t y o u r m o th er and fath er
do.”
A Pleasure
H usband: “M ary, w h y on earth m ust
you feed every tra m p th a t comes to
th e door?”
W ife: “You’ve no idea w h at a joy
it is to see a m an eat a m eal w ith o u t
finding fau lt w ith th e cooking!”
Busy Night
Mr. G insburg had been com plaining
of insom nia. “E ven counting sheep is
no good,” he siged, “I counted 10,000,
sh eared ’em, com bed th e wool, had it
sp u n into cloth . . . m ade into suits
. . . took ’em to B oston . . . and lost $21
on th e deal! I did n ’t sleep a w ink!”
Same Old Story
F ath er: “Mabel, th a t young m an of
y o u rs stays too late w hen he calls.
H a sn ’t yo u r m o th er said som ething to
you about it?”
Mabel: “Yes, daddy; m o th er says
m en h av en ’t changed a b it.”
Casting Reflections
T he near-sighted m an an d his w ife
w ere inspecting th e latest a rt exh ib it
w ith critical care.
“T h a t’s th e ugliest p o rtra it I ’ve ever
seen,” he cried, angrily, striv in g vain ly
for a b e tte r view of th e abom ination.
“Come aw ay, you fool!” replied his
wife. “You are looking a t y ourself in
a m irro r.”
Short Wave
A n a rd e n t radio fan, th e little g irl
w as saying h e r p ray ers w hen th e re
cam e a scratching a t th e screen door.
“Please stan d by, God,” said she,
“w hile I let th e cat out.”
Needed a Reward
P a t determ ined to pass his favorite
ta v e rn on th e w ay home. As he ap
proached it, he becam e som ew hat
shaky, b u t after plucking up courage,
he passed it. Then, afte r going about
50 yards, he tu rn ed , saying to him self:
“W ell done, P at, me boy. Come back
and I ’ll tre a t ye.”
Never Again
M other: “Johnnie, d o n ’t say such
n a u g h ty w ords!”
Johnnie: “Shakespeare uses them .”
M other: “W ell, you m u stn ’t play
w ith him any m ore.”
That's Right—
T raveler: “Yes, I saw Sir W alter
Scott’s hom e.”
Old Lady: “T h e re ’s a m an I g reatly
adm ire.”
T raveler: “W hich of his books do
you like b est?”
Old Lady: “I h a v e n ’t read any of
his books, b u t I ’ve tak en his E m ulsion
for 20 years, and th e re ’s n o thing b et
te r.”
Good Idea—
Caller: “W ell, well, well, so y o u r
nam e is Jan ie and y o u ’re five y e a rs
old. A nd w h a t do you plan to do w h en
you get as big as y o u r m o th er?”
Janie: “D iet.”
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SALES A N D
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Federal Reserve Bank of St. Louis
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M e m b e r 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
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Federal Reserve Bank of St. Louis
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