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https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -O F F I C E R S----------James E. H a m il t o n , Chairman Executive Committee YOU ARE INVITED to hear The Merchants National Hour over WMT, 9 to 10 each Sunday evening . . . an outstanding pro duction used to pro mote banking in Iowa. S. E. Coquillette, Chairman of the Board John T. H amilton II, President F red W. S m i t h , R. D. B r ow n . Vice President Asst. Cashier O. A. K e a r n e y , Asst. Cashier G eorge F . M il le r , Vice President and Trust Officer S t a n l e y J. M o h r b a c h e r Asst. Cashier M a r v in R . S eldbn Vice President E verett C. P r a t t , Asst. Cashier R. W . M a n a t t , C. F . P e r e m s k y , Vice President Asst. Cashier L . W . B r o u l ik , V ictor W . B r y a n t , Vice President Asst. Cashier J a m e s E . C oquillettte , P eter B a il e y , Asst. Cashier Cashier Local Bankers Help to Safeguard The American Economic System Our system of free enterprise, in a land of individual opportunity, stands on the foundation of independent banking. The local banker promotes the welfare of his customers with the facilities of his bank and his experienced business judgment. This system of encouraging citizens to utilize their skills and ambitions for business growth has made America the most productive nation in the world. More than half of the banks in Iowa are correspondents of The Merchants National. These bankers depend on this reliable connection to provide customers with nationwide hanking service. The “ network” of Merchants National correspondent banks has constantly grown through the years because unexcelled facilities are combined with dependable counsel. THE Merchants National C E D A R R A P I D S , 1 O W b a n k A Member Federal Deposit Insurance Corporation No. 764. Northwestern Banker, published monthly by the Northwestern Banker Company, at 527 Seventh Street, Des Moines, Iowa. Subscription, 35c per copy, $3.00 per year. Entered as Second Class Matter January 1, 1895, at the Post Office at Des Moines, Iowa, under Act of March 3, 1879. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Every policy of The Home Insurance Company is a deeply personal document. Each provides a shield of protection for some person’s cher ished possessions—perhaps your home, or car, or business. And each bears the mark of some Home Insurance representa tive’s interest and efforts in behalf of the policyholder. In nearly every community from coast to coast, these members of the Home “ family” are bringing protection to their clients and neighbors in an efficient, friendly way. And when and if fire or other adversity occurs, you’ll find that this is a friend ship of deeds—not words. Then your Home man carries out the promise of your policy—sees to it that you get fast and effective help. This sincere, human approach to your insurance needs has given The Home the neighborly characteristics for which it is known. It has made of it a company which not only serves your community but is a part of it—a company of people rather than statistics. The Home, in its truest sense, is the man who lives in your town and serves you—your Home representative and his com panions in communities throughout the country. The accom panying figures are a report of their work for you and your neighbors in the year 1950. Sincerely, P r esident t^a /a n ce -J/ieerf ADMITTED D irectors ‘ December 31, ASSETS L e w is Cash in Office, Banks and Trust Companies $ 38,777,419.93 United States Government Bonds . . . . 108,301,862.62 Other Bonds and S t o c k s ................................. 175,820,027.95 Investment in The Home Indemnity C o m p a n y ....................................... 6,878,161.00 Real E s t a t e ............................................................. 5,293,635.24 Agents’ Balances or Uncollected Premiums, Less Than 90 Days Due . . 19,766,198.65 Other Admitted A s s e t s ....................................... 3,320.264.23 Total Admitted A ssets................................ $358,157,569.62 L. Clarke Banker ♦ W il l ia m L. G eorge M cA n e n y Trustee, Title Guarantee & Trust Company H arold V. Reserve for Unearned Premiums . . . . Reserve for Losses and Loss Expenses . . Reserve for T a x e s ............................................ Liabilities under Contracts with War Shipping Administration . . . . Reinsurance R e s e r v e s ....................................... Dividends D e c la r e d ............................................ Other L ia b ilit ie s .................................................. Total Liabilities Except Capital . . $153,821,812.00 40,775,253.00 8,750,000.00 1,218,246.31 1,334,793.53 3,598,708.50 5,417,599.74 $214,916,413.08 Capital .................................................................. $ 20,000,000.00 S u r p l u s .................................................................. 123,241,156.54 Surplus as Regards Policyholders . Ivan B. A dams Chairman of Executive Committee, Atlantic Coast Line Railroad Co. D o w l in g President, City Investing Co. G eorge G u nd President, Cleveland Trust Co. H arold H. H elm President, Chemical Bank & Trust Co. B o y k in D a v is President, Atlantic Coast Line Railroad Co. S. C. L e ro y A . H a r r is o n M cD ow ell P ark W 'r ig h t Lawyer Lawyer C h a m p io n K. H a r b in C . M a d e ir a , J r . E arl G . B r u n ie President, First National Bank of Columbus, Ga. President , Land Title Bank & Trust Co. W arren R obert W . E scott Vice President P ercy C. President, Empire Trust Company L in c o l n President, Metropolitan Life Insurance Company T h o m a s J . R oss Senior Partner, Ivy Lee and T. J. Ross Jo h n so n H enry President, Peoples Savings Bank & Trust Co. of Wilmington, N. C. C. V on E lm President, Manufacturers Trust Company John R oger W . B a b so n M. F r a n k l in President, United States Lines Co. Chairman of Board , Babson*s Reports, Inc. Lou R. R o bert B . M ey er The Cord M eyer Company C randall President, George A. Fuller Co. ♦Deceased January 18, 1951 $143,241,156.54 T o t a l ..................................................................$358,157,569.62 ♦NOTES : Bonds carried at $5,799,756.96 Amortized Value and Cash $80,000.00 in the above balance sheet are deposited as required by law. All securities have been valued in accordance with the requirements of the National Association of Insurance Commissioners. Assets and Liabilities in Canada have been adjusted to the basis of the free rate of exchange. Based on December 31, 1950 market quotations for all bonds and stocks owned, the Total Admitted Assets would be $357,620,695.62 and the Surplus as Regards Policyholders would be $142,704,282.54. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis S m it h H enry Vice President & General Counsel President F r e d e r ic k LIABILITIES D e B ost Chairman, Union Dime Savings Bank C h a r l e s A . L o u g h in * THE HOME * Hume Office: 59 Maiden Lane, New York 8, N. Y. FIR E A U T O M O B IL E M A R IN E The Home Indemnity C o m p a n y , an affiliate, writes C a s u a l ty Insurance, Fidelity and Surety Bonds 4 Sell the Travellers Cheques that sell your bank to everyone who sees them! THESE TRAVELLERS CHEQUES have the name of your bank and increase your bank’s prestige —both at the same time printed in the lower left hand corner —at no cost to you. —when you sell these Travellers Cheques that sell your It is an extra service of The First —typical of the many extras enjoyed by our customers and correspondents. bank to everyone who sees them. Suggest them to your customers for both vacation and You retain the entire commission when you sell Travellers business use. They have provided protection for travel Cheques of The First National Bank of Chicago; remitting funds for more than 40 years, and can be spent anywhere to us only the face value of the cheques you sell. in the world —just like cash. For details write our f o r e i g n For these two reasons you increase your bank’s revenue BANKING DEPARTMENT. The First N atio n al B a n k of Chicago Dearborn, Monroe and C lark Streets Building with Chicago since 1863 MEMBER Northwestern Banker, March, Ì95Ì https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis FEDERAL DEPOSIT INSURANCE CORPORATION 5 "V ... a n d h e r e ’s This check is a permanent record of the transaction . . . clear evidence of payment that should clinch the case. » » This is just one of the services a check can render. Bankers, concerned with the transfer and safe handling of funds, realize the vital importance of checks in every day business life. Naturally they use great care in the selection of their safety papers. » » The vast number of checks lithographed on La Monte Safety Papers and circulated daily by American Banks is an indication that their quality and safety are widely recognized. A Check Paper All Your Oivn Thousands of banks and many of the larger corporations use La M onte Safety Papers with their own trade-mark or design made in the paper itself. Such i n d i v i d u a l i z e d check paper provides maximum protection against both alteration and counterfeiting—makes identification positive. > https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE WAVY LIN ES ® ARE A LAM ONTE TR A D E-M A R K Northwestern Banker, March, 7951 6 / MORE THAN 10,000 BURROUCHS COMMERCIAL TELLER'S MACHINES im. mcptAMf MÁAMW WHEREVER THERE’S BUSINESS THERE'S Northwestern Banker, March, 1951 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Burroughs 7 ON THE COVER Several nationally known leaders in the fields of business, agriculture, la bor and government were speakers at the National Farm Institute in Des Moines last month. Sponsored annu ally by the Des Moines Chamber of Commerce, this Institute is addressed to the problems and needs of the farmer, but more and more in recent years this has involved the added need for first-hand information on govern ment legislation and controls as they affect the farm, an interpretation of the important role agriculture is play ing in international economy, and its place in the country’s social structure. Among the many recognized leaders who appeared on the platform at this year’s Institute are the three men pic tured in the exclusive photograph ap pearing on the cover of this issue of the N orthwestern B ank er . Left to right, they are: Michael V. DiSalle, price director of the Office of Economic Stabilization, Washington, D. C.; W. H . Ruffin, president of the National Asso ciation of Manufacturers, Durham, North Carolina, and E. E. McConney, president of Bankers Life Company of Iowa, and president of the Des Moines Chambere of Commerce. DES MOINES Oldest Financial Journal West of the Mississippi • 56th Year * No¡ 764 IN THIS MARCH, 1951, ISSUE EOITORIALS A cro ss the D esk fro m the P u b lish er........................................................... 10, 11 FEATURE ARTICLES On the C o ver........................................................................................................................ 7 F ro n tisp a g e ....................................................................................................................... 13 H ow O ur B a n k O rganized a Soil C o nservation C on test........................ ......................................... ...................................................................... R. P. Blake 15 A B a n k T ou r P ro gra m fo r S tu d en ts................................................................ 16 B a n k ers Y o u K n o w — W illia m A . Saw tell ................................................. 18 N e w s and V iew s o f the B a n k in g W o r ld ....................... Ben Haller, Jr. 19 ANNUAL INVESTMENT ANALYSIS H o w Y o u r In ve stm e n t P ortfo lio Is A ffected by E x ce ss Profits T a x ............................................ Edward L. Moritz and William C. Norby 24 W h a t W ill Y o u r T a x e s B e ? .................................. ......... Edward J. Redden 29 Fourth Annual School The School of Financial Public Re lations, conducted by the Financial Public Relations Association in con junction with Northwestern Univer sity, will hold its 1951 session on the University’s Chicago Campus, July 30th to August 11th. This will be the fourth annual session of the school, which was founded in 1948 to provide a practical training course for bank public relations, advertising and busi ness development executives. The complete course consists of two resident sessions, combined with six extension problems and an original project to be completed between the two sessions. The 1951 senior class will be graduated on August 10th. F o u r Reasons fo r B u y in g S tate and M u n icip a ls.... James F. Quigg 31 The F u tu r e fo r T a x E x e m p ts Seem s A s s u r e d . ...Newell S. Knight 33 T re a su r y and F e d e ra l R eserve T u g and H a u l...... Raymond Trigger 35 H ow Pension F u n d s B oost B u sin e ss....................................... R. A. Nelsen 37 S u gg estion s fo r Your In v e stm e n t P o r tfo lio ......... ....................... INSURANCE H ow a N e w A g e n t B u ilt H is A g e n c y .................................. Ted A . Seely 47 STATE BANKING NEWS M in n esota N ew s .............................................................................................................. 57 T w in C ity N e w s .......... ........................................................................................... 58 South D a ko ta N e w s ......................................................................................................... 63 Sioux F a lls N e w s ................................................................................................... N o rth D a ko ta N e w s ..... ......... Seven new men have been added to the faculty of The Graduate School of Banking of the American Bankers Association, beginning with the 1951 session next June, it was announced by Dr. Harold Stonier, director of the school. The seven are: Karl R. Bopp, vice president, Federal Reserve Bank, Phil adelphia, Pennsylvania; Dr. Earl L. Butz, head, Department of Agricul tural Economics, Purdue University. Lafayette, Indiana; Leslie K. Curry, vice president, Mercantile-Commerce Bank and Trust Company, St. Louis, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 63 65 N e b ra sk a N e w s ______ 67 O m aha N e w s 68 ...................................................................... Lincoln N e w s ........................................................................................................... 72 Iow a N e w s ............................................................ ........ ................... .............. ........ ........ 75 G roups One and T w o A n n u a l M eetin g s— P ictu res Named to Faculty 44 _______ ___ 76 D es M oines N e w s ........ ............................ ........ .............................. .................... 85 In the D ire cto rs’ R oom ___________ C onventions 89 ....................................................................................................................... L e g a l— Is a B a n k L iab le fo r I n ju r ie s ? .................................... ...................... 89 90 NORTHWESTERN BANKER 527 Seventh S t., Des Moines 9, Iowa, Telephone 4-8163 RALPH W. MOORHEAD Associate Publisher CLIFFORD DE PUy Publisher HENRY H. HAYN ES Editor ELIZABETH CO LE Advertising" Assistant PAUL W . SH O O LL Field Representative BEN J. H ALLER, JR. Associate Editor H A ZEL C. STEPHENSON Auditor MALCOLM K. FREELAND A ssociate Editor SADIE E. W AY Circulation Department JO SEPH W . FRANKS Field Representative NEW YORK O FFIC E Frank P. Syms, Vice President, 505 Fifth A v e ., Suite 1806 MUrray Hill 2-0326 DE PUY PUBLICATIONS: Northwestern Banker, Underwriters Review, Iowa-Nebraska Bank Directory. Northwestern Banker, March, Ì95J 8 Missouri; Charles J. Lyon, president, Society for Savings, Hartford, Connect icut; Lee J. Marino, assistant comp troller, Central Savings Bank, New York, New York; John I. Millet, presi dent, The Troy Savings Bank, Troy, New York, and Dr. Raymond J. Saulnier, professor of economics at Barn ard College and member of the Gradu ate Faculty of Political Science at Columbia University. Messrs. Bopp, Butz and Millet were special lecturers at the school last year. H on o r o d H y 1 .1 . #/. ï S prompt, efficient collection of Wisconsin checks and drafts important to you? Do you ever need first-hand facts about sources of supply in Wisconsin? . . . credit information? . . . market data? . . . who’s E. Chester Gersten, president of The Public N ational B ank and Trust Company of N ew Y ork , was given an honorary membership in the N ew Y ork Chapter o f the Am erican In sti tute of B anking at the Chapter’s 50th A nniversary Banquet last month. The presentation was made by George Dineen, le ft, N ew Y ork Chapter president, in recognition of M r. Gersten’s long interest and sup port of A .I.B . activities in the field of banking. who? Whatever your requirements — routine bank ing service, special information, or off-the-beatenpath assistance — the chances are that the facil ities, long experience and statewide contacts of the first Wisconsin National Bank of Milwaukee can supply the answer. Established in 1853, this bank is the largest in the state . . . long high on the list of the hundred largest banks in America . . . with unparalleled correspondent contacts throughout Wisconsin. Northwestern Banker, March, 1951 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Third Conference Commerce Trust Company, Kansas City, entertained approximately five hundred and fifty of their bank corre spondents at their third conference. During the morning many of the bank ers took advantage of the invitation to make a tour of the Commerce Trust Company and in that way see the actual operations. Immediately following a lunch, the conference was addressed by J. C. Williams, president of the bank, who was followed by Ray R. Reece, vice president, in charge of the real estate loan department, and Charles A. Truitt, vice president, in charge of the consumer credit department. Both Mr. Reece and Mr. Truitt answered many questions from the floor after their talks. The final speaker was Dr. Marcus Nadler, Professor of Finance and Banking, New York University. f. 9 4 ~X CORRESPONDENTS C H A S E B A N K I N G G O E S H A N D IN H A N D WITH Credit information Around the clock mail pick-up Quick collection o f items Through its branches, representatives and correspondents, the Chase maintains close contact with every commercially important part o f the globe. As a result, correspondents o f the Chase get quick, efficient, productive service wherever they require it, at home or abroad. Participation in local loans with correspondent hanks Dealers in Slate and Municipal Bonds Execution op security orders A nalyses o f investment portfolios THE CHASE N A TIO N A L BA N K https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Safekeeping o f securities O F THE CI TY OF N E W YORK Full foreign services M ember Federal Deposit Insurance Corporation M an y personal services Northwestern Banker, March, 1951 10 It does us very little good to look backward at this time, but certainly if we had had better coun sel at Yalta, better diplomatic advice all along the way, we might not be in the situation which now requires such tremendous taxation as well as mobilizing again in America. Let’s hope, as you point out, Mr. Giannini, that we can both prepare for war and produce for civilian requirements so that we can win on both fronts—both the foreign and the domestic. It is a big task, hut if anyone can do it, America can. (DsjoOc (jtfiUianL ÿ. (Üatitsüv: Vice President, Bank of Norton, Mississippi A chiss the llesk From tlie Publisher (2)iuvl X . C YYL. President, Bank of America, San Francisco, California Preparedness and productivity are the real an swers to the American goal to live in peace, and these points were emphasized by you, Mr. Giannini, in a recent message to your 180,000 stockholders. As you put it, “ In this world we can never go back to normal. We can only go forward to a new normal—in this case a new normal of defensive preparedness sufficient to win and hold our goal of peace. The cost will be high, but we are pre pared to pay it. We will pay the price through our sons and daughters in uniform. We will pay the price in higher taxes and in temporary shortages and other inconveniences. “However, once our national economy has been adjusted to the requirements of an effective state of preparedness, we can—if we possess the will— continue our way of life without sacrifice of any essential freedom. Once we have established our national impregnability we can maintain it and at the same time produce the goods and provide the services with which our living standard is fash ioned.” Definitely the first thing we must do is to estab lish our “ national impregnability” to which you refer, because then and then only will Russia and her satellites give heed to any words of ours, either emanating from Washington or through us from the United Nations. Northwestern Banker, March, 1951 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Prom time to time, the N o r t h w e s t e r n B a n k e r has made surveys on the general topic “ What do you want from your Correspondent Bank?”— therefore, we were interested in reading y#ur sug gestions on “How can the Correspondent Bank be helpful to the Country Banker?” Your ideas were these— “First of all, a corre spondent bank must have as its representative a man well trained in all phases of banking— a man who can intelligently discuss problems frequent to a country bank, not just any country bank but the particular bank he is visiting. “He should be qualified to discuss problems af fecting the local community on State or national levels. He is not just the ordinary happy, friendly, smiling handshaker, as important as these quali ties are. He must be able to talk with the country banker about, and show a genuine interest in, his problems as the country banker would talk to one of his customers. “He must have the ability to gain and hold our confidence. To do this, he must be frank and honest. To retain and improve this relationship you cannot be evasive nor technical.” Your suggestion, Mr. Walter, that the corre spondent bank representative should be able not only to talk about the problems of a country bank, but he must be able to discuss the problems of the particular bank he is visiting, strikes a responsive chord with the N o r t h w e s t e r n B a n k e r , because we believe that only upon that basis can be built the close personal and friendly relationship be tween the country banker and the city banker. The city correspondent bank representative must know your personal problems, and your in dividual problems in order to give you the greatest help and the greatest cooperation. In one of the N o r t h w e s t e r n B a n k e r corre spondent Bank Surveys, to which we referred above, we asked this question, “ What is the most unusual service you have ever received from a city 11 correspondent?” and a few of the replies were these: “An officer of the correspondent bank personally spent several days in our bank perfecting- our cage system.” ^ ^ “Analyzed our operations and physical setup, with suggestions for changes and improvements.” “Helped us to plan our new bank building.” ^ “Supplied us with one of their personnel to act as cashier while our own cashier was on vacation.” There were many others, of course, but among two on the lighter side were these: “Helped us to obtain a pastor for our church.” “And got a job for our president’s son which we considered a most unusual service.” ^ ^ “ Customers that are not prepared to accept rates for banking’s products in the same spirit with which they expect their own charges to be acqui esced in are by definition less desirable customers. If borrowers followed such unsound pricing poli cies for their own products they would hear about it from the bankers who hold their loans. Fear of losing customers to competitors is a chief deterrent to adjustment of loan rates upward.” Your point is well made, Mr. Lyon, when you say that bankers who make loans to merchants would be the first ones to suggest that those merchants charge proper prices for their goods, so that the merchants in turn, would make an adequate profit and thus be able to pay off their loans. Credit is a commodity for which banks should receive a fair and just rate. ^ Seriously, Mr. Walter, there is no finer rela tionship in American banking than that which exists between the large city banks and their country correspondents because it is the bulwark of our financial system and keeps both Wall Street and Main Street closely identified with each other and with the problems which both have to solve. (D&Wl UlillianL CL. dtyorc: Superintendent of Banks of New York State Your suggestion that banks should adjust their loan rates upward is very much to the point. Many banks, as you suggest, have been fear ful of increasing their interest rates to borrowers lest these customers would transfer their business to the bank’s competitors. Certainly in these days when other commercial enterprises are charging rates which they believe are commensurate with the service they render, and the goods they have to sell, there is no reason why bankers should not likewise place a higher value on their “ stock in trade” which is the money they have to loan. As you put it, “American industry and business are not paying rates high enough for the credit they use. It is safe to say that the better the credit risk, the more inadequate are the rates paid. In dustry’s earnings easily permit it to pay reason able rates for its short-term borrowings. It is time for banks to charge commerce and industry for loans that will bear a more satisfactory relation to the cost of service. “The time is at hand to keep the enormous loan capacity of banks from standing in the way of charging more realistic rates for prime loans. . . . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Industry and commerce should be prepared to accept by negotiation suitable rates for those prod ucts of banking, chiefly credit, that they use. (Dsuax, (Ralph, TYL. <Hj d w q a , : Professor of Business Administration, Harvard Business School, Cambridge, Massachusetts Your recent discussion in the Harvard Business School Alumni Bulletin on the general subject of private enterprise and its effect on our citizenry is rather thought-provoking. Private enterprise, as such, has built America, but also, as you point out, there have been mis takes committed in its name, and those obviously should be eradicated. As you point out, “Business leaders are begin ning to recognize explicitly the interdependence between private enterprise and real democracy. This, I believe, is at least part of the meaning of the present concern about our freedoms, the grow ing interest in human relations, and the spread of programs for training executives.” In the banking business are various graduate schools doing much to educate the junior members of banking institutions concerning the business in which they are engaged. Life insurance com panies have long had training schools for repre sentatives as have also other businesses. Thus, Professor Hower, we still believe that private enterprise and the individual initiative are paramount factors in the future success of Amer ican business and American banking. Northwestern Banker, March, 1951 12 illilii Our Correspondent Service is based upon Sound Experience, Efficient Service and Friendly Co-operation C E N T R A L N A T IO N A L BANK and Trust Company Des Moines, Iowa Member Federal Deposit Insurance Corporation Northwestern Banker, March, 1957 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J The o/fiational Adding Mach. - ■ ¡® S g iflip •\V;’ • ■ • ■■■V . ■ K«j •a : V v ? ,-a ¡g|g| PÄ : ...with time-and-effort saving features never before combined in one machine THE NATIONAL CASH REGISTER CO M PAN Y https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis DAYTON 9, OHIO e/fS tU m a l CASH REGISTERS* ADDING MACHINES ACCOUNTING MACHINES 15 i t aw i t u r H ank O r u 3 -Y e a r S o i l l'o n s e r r a t i o n C o n te s t Total of $1,100 in Prizes Offered in Effort to Stem Soil Erosion and Depletion By RUSSELL P. BLAKE President, Farmers Savings Bank Mitchellville, Iowa OTHER NATURE presents a constant, unrelenting challenge to agriculture. Floods and droughts, water and wind erosion, and depletion of soil fertility are all com mon problems of the man of the soil, sometimes singly but more often col lectively. All of these operate to defeat the agricultural goal of greater production made so necessary by a rapidly in creasing population and rising costs of production. All of these have in the past hundred years made thousands of acres of farm land barren and un productive and unless speedy action is taken many more thousands of acres are destined soon to become unprofit able of operation. M Conservation Profits Proper soil conservation practices cannot prevent the caprices of Mother Nature but they can and do mitigate the frequently disastrous effects that follow. Properly applied they have brought and can bring back into prof itable production farms that have been all but abandoned. Soil conservation officers under the Department of Agriculture have done a splendid job in many instances in educating individual farmers to the pressing need for soil conservation practices, but it took nearly thirty years to get everyone to admit that the automobile was here to stay. Many farmers wilfully close their eyes to the benefits of any soil conservation pro gram because of a few minor disad vantages of contour farming. With these thoughts in mind our bank instituted a soil conservation contest with the primary purpose of inducing local farm operators to put into effect such soil conservation prac tices as their individual farms might require. each year to the two contestants hav ing the highest rating for that year and a grand prize of $500 awaits the winner based on the greatest accom plishment for the three-year period. No contestant is allowed to win more than one annual award. We have just finished the first year of the contest and the first two awards were made at a program arranged by the bank to which the whole commun ity was invited. Perhaps no better explanation of the contest objectives could be written than the following brief resume of the accomplishments of each of the two winners, written by the judges who, incidentally, were selected by the district soil conservation officers. The Winners Farm No. 1. nells, Iowa: H. R. El well, Run- He has taken a farm that was badly run down and now has it well on the way to recovery. He has put all of the crop land on the contour. He has stripped the more rolling land kept in cultivation. He has planned and is following rotations adapted to the va rious types of land including judicious use of grasses and legumes. He has shaped approximately one mile of gul- lies and seeded them for grass water ways. He has planted multiflora roses for wild life protection. He has built diversions and repaired washed out tile lines to control water and protect new waterways. He has also used lime and fertilizer on all grass legume seedings. Farm No. 2. Raymond A. Woods, Mitchellville, Iowa: He has taken a strongly rolling farm and accomplished what looks like almost complete soil erosion control with an excellent system of contour cropping. He has produced dense for age crops of exceptional soil binding qualities. He has installed tile lines to control water and facilitate the produciton of excellent sod in water ways. He has adopted crop rotation tailored to meet the soil requirements of his farm. In addition to the remarkable achievement of the two men as de scribed above, five other local farmers scored over 200 points out of a possible 300 and perhaps 20 others are well in the running for the three-year pull. Can't Measure Success We have made no attempt to evalu ate any good will accruing to our (Turn to page 20, please) $1,100 in Prizes We mapped out our trade area and asked our district soil conservation officers to devise a set of contest rules and a method of judging the entries and we offered $1,100 in cash prizes over a three-year period. Two $100 awards were scheduled to be given https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis T H E F A R M E R in the above picture is a firm believer in the author’ s statement that “ Proper soil conservation practices cannot prevent the caprices of Mother Nature but they can and do m itigate the frequently disastrous effects that follow . Northwestern Banker, March, 1951 16 Hank Tour M o ld s Opinion P rogra m for Senior o f FuCustom Kansas Bankers State-wide Program Aimed at Reaching High School Seniors in 461 Communities F YOU knew that 37 per cent of the public either favored government ownership of banks or had no opin ion on the subject— If you knew that thousands of peo ple had recourse to governmental loan agencies— If you knew that thousands of peo ple by-passed banks to deposit their money in the Postal Savings System— I dure is used by each tour manager as a working pattern, then adapted to local conditions as seems best suit able. Last Opportunity The tour idea is aimed only at high school seniors so the program will not be unwieldy. In addition, this is the last opportunity that Kansas bankers will have to contact these young peo ple as a group on a state-wide basis. WHAT WOULD YOU DO? The above “ifs” all happen to be As the bank personnel section said facts well known to bankers every in its manual of operations, “ If Kan where. To combat these conditions sas banks do not reach these young adverse to banks, the Kansas Bankers people before they are graduated from Association has instituted a program high school, they may be forever lost that is educational in nature and de to various government credit agencies, signed to build good will among future savings and loan associations, finance companies and our many other com bank customers. Recognizing the fact that it’s easier petitors, simply because these young to make favorable impressions upon people did not know what friendly young people than to “teach an old assistance our banks can readily give dog new tricks,” the Kansas Associa them.” As a result of the first year’s oper tion inaugurated a state-wide Bank Tour program for high school seniors ations during the 1949-50 school term, two years ago during the school term 114 Bank Tour programs were com pleted in as many communities for of 1949-50. The association’s bank personnel more than 3,000 high school seniors commission was responsible for set and 200 teachers. The value of includ ting up the program. Under the ing the teachers in the tour is invalu chairmanship of Thomas J. Morris, able, according to association officers. Jr., 461 local Bank Tour managers More tours were not conducted the have been appointed. These appoint first year because many local man ments are made wherever there is at agers had planned to have their Bank least one bank and a near-by high Tour in the spring, then it developed school. A suggested outline or proce that in many instances this was im T Y P IC A L of the opportunities afforded by the Bank Tour Program for estab lishing frien d ly relationships between banks and young people is the abo\ e pic ture. E xplaining loaning policies and bond account to two local high school seniors is Don Britton, executive .vice president and cashier, Citizens State Bank of Ellsw orth, K ansas. The two interested students are Pat Liggett and Paul Aylward, Jr. Northwestern Banker, March, 1951 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis possible because of the other activi ties contingent upon pregraduation months. Benefiting from this experience, the bank personnel section recommended that the program be scheduled in the fall and through the winter months to avoid the spring rush of activities. As its follow-up on the program after appointing local Bank Tour managers and providing them with a manual of operations, the bank personnel sec tion also appointed a county manager in each Kansas county. It is the duty of this bank officer to make a monthly check by telephone with each bank conducting one of the tours to see if it has been held and, if not, what dates have been set. This provides a running check for the personnel section which can then make neces sary follow-ups with individual tour managers. Procedure Close liaison between local banks, the personnel section and the Kansas Association is provided by the work of Carl A. Bowman, secretary of the Kansas Bankers Association. His fa ther, Fred M. Bowman, is executive secretary and Carl handles this phase of association activities. Here is the outline of procedure suggested by the Kansas bank personnel section: (1) The bank tour manager should arrange with other banks in his town or city for the bank tour by the senior high school class. It is impor tant that all banks in the community participate, which can be accomplished in several ways. One method would be for part of the senior class to be invited to tour one bank, the re mainder of the senior class to be di vided among the other banks. An other method is for the senior class to tour one or two departments of one bank, then touring different de partments of other banks. Obviously, the Bank Tour program is designed to benefit banking as a whole, rather than any one bank. (2) After arranging with the other banks in the community as outlined in the above paragraph, the local Bank Tour manager should discuss the pro gram with the superintendent of schools to obtain his permission and cooperation. (3) Next, the senior high school teachers should be approached and details of the program developed with them. In the larger places where there may be a number of senior class teachers, an excellent suggestion is that the teachers themselves first be taken on a conducted and explana tory tour of the banks, possibly fol lowed by a dinner provided by the banks. (4) An optional step at this point would be for bank personnel section members with speaking ability to lec ture at the high school on the bank procedures which the students will see when they later tour the banks. (For specific suggestions on such lec tures, see page 5 of the manual “Bank ing on Youth,” distributed in Febru ary of 1948 to the bank personnel sec tion.) (5) How to conduct the tours: (Also see “Your Bank’s Relations With Schools,” A.B.A. Public Rela tions Manual No. 5, especially pages 16 to 27.) (a) Invite small groups or classes, variable somewhat with amount of bank floor space. (b) Plan in detail each step of the tour and rehearse it several days ahead of the tour. (c) When the students arrive, intro duce members of the bank staff and welcome the class to the bank. (d) Request silence so conductor may be heard. (e) Ask for questions after conduc tor’s remarks concerning each bank function or department. (f) Conductor should speak loudly so all can hear and in simple terms used by the public. (g) Long pointer should be used and visiting group should be placed in a body at opposite side of the room to permit equal visibility to all. (h) The following functions should prove to be interesting (visiting all banks in the community, possibly one or two different departments in each). 1. Paying and receiving. 2. Bookkeeping. 3. Savings. 4. Transit. 5. Proof. 6. Safe deposit. 7. Vault and safes. 8. Credit files. 9. Loan procedures, types of loans and where lending funds come from. (i) Demonstrate receiving deposits by having visitors take turns at act ing parts of depositor (making out deposit tickets, etc.), teller, bookkeep er, also safe deposit attendant, etc. Advanced commercial classes could devote an evening also to operating bookkeeping, photographic, proof and other equipment in simulating a “day’s https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Litlthi/ IHsplaif Hints Is In te re st FR IE N D L Y R ELATIO NS between a bank and its local businessmen is a must in every community, so the N orthwestern B anker asked L. B. Wilson, Jr., assistant cashier of the F irst N ational Bank in Rock Island, Illinois, to explain the program that has worked so well in his bank. M r. W ilson describes the plan as follow s: “ W e have developed a service in our bank which has proved to be a great success. W e placed in our lobby a booth 11 feet long, four feet wide, with curved sides and a curved back. “ Each week we let one of Rock Island’s retailers use this booth to display his wares. The firms who use this booth decorate it the w ay they wish, and our customers enjoy the displays thoroughly. N o t a piece o f ' goods has ever been lost through pilfering, yet the booth has been completely uncovered at all times. “ One o f our furriers sold a $500 fur coat directly because a lady had seen it and went straight to the store and stated she wanted one just like it. A lso, two refrigerators were moved from the booth during a one-week period which were sold directly, because the people wanted those two and no others. “ W e have had the booth in operation for a year and a half, and each week there has been a different retailer displaying his w ares.” work” on a reduced scale, using dummy items. (j) A refinement is to use large charts to illustrate flow of items through a bank and through banking system. (k) Show movies on banking. “Pay to the Order of—” and “How Banks Serve” both run about fifteen minutes. (l) Conclude the tour with serving of light refreshments or evening din ner. Final Report After a tour is completed, the local Bank Tour manager fills in a report ing form in triplicate, one copy going to the banker personnel commission’s county officer, the duplicate going to the Kansas Bankers Association office at Topeka, and the third being re tained in the local bank’s file. This provides a quick method of charting the areas in which there is extensive work with the program, and areas in which further work needs to be done. This program to date has been quite successful in accomplishing the pur pose set forth by the Kansas Asso ciation, to bring the banks to the young people, and make them feel at home. This breaks down the “barrier of strangeness” which otherwise may keep them away from banks for years or forever.—The End. Langum Resigns John K. Langum, vice president of the Federal Reserve Bank of Chicago, has resigned, effective March 31st, to accept an appointment for the spring semester as visiting professor of busi ness administration in the School of Business of Indiana University. He will continue to be active in Chicago as a public speaker, writer, and con sultant on business conditions, mone tary and public debt management, and the Federal budget. Dr. Langum has directed the re search activities of the Federal Re serve Bank of Chicago since coming to that institution in 1941. He was elected assistant vice president in 1942 and vice president in 1944. Northwestern Banker, March, 1951 18 H a n k ers \rou K n o w W illiam A . Sturi i’ll President The Stock Yards National Bank Omaha, Nebraska “Has had active experience in all phases of the livestock industry,” PERATING a bank in the spe cialized field of live stock financ ing requires the supervision of an extremely capable chief executive, one who knows all the facets of meat production from the grass range to the gas range. The Stock Yards Na tional Bank of Omaha is indeed fortu nate in having such a man as its president, William A. Sawtell. Mr. Sawtell has had active experi ence in all phases of the live stock industry— production, marketing and financing— over a period of more than 40 years, and has been successful in all three. His good judgment, distilled from these 40 years of wide experi ence in the industry, is a stabilizing factor in meeting the needs of ranch er, feeder, commission man or packer. Mr. Sawtell’s personal background is enough to back up the Stock Yards National’s motto— “ If it pertains to livestock, we can serve you.” Born in Chicago, Illinois, on De cember 19, 1889, William A. Sawtell O Northwestern Banker, March, 1951 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis followed the usual pursuits of a city youth until his graduation from the University of Illinois agricultural col lege in 1911 with a Bachelor of Science degree. With little delay he headed west and took up ranching in northern Wyoming, later moving to eastern Montana. Because of his close association with ranchers and feeders, and his thorough understanding of their needs and problems, Mr. Sawtell made an easy transition from saddle to bank chair when he joined the Stock Yards National Bank, St. Paul, in 1919. He served with that bank until 1932 when he moved to Omaha and became vice president of the Stock Yards Na tional Bank in South Omaha. In January, 1936, after three years as executive vice president, Mr. Saw tell was elected president of the Stock Yards National. Deposits at that time were approximately $6,000,000. At the year-end call for 1950 deposits of the bank were $24,367,000. In his advance to the presidency, Mr. Sawtell lias never lost the com mon touch. He can discuss personal and financial problems as easily with the laborer in the packing house as with the executive in charge. He has an analytical mind that very quickly resolves complicated problems into reasonably simple cases. These qual ities continually inspire the con fidence of both customers and the bank staff. Mr. Sawtell was married to Helen Fiegenbaum on June 28, 1914. I hey have two sons, William A. Sawtell, Jr., 35, and Stephen M. Sawtell, 20. Years of work in a bank have not dampened Mr. Sawtell’s enthusiasm for the outdoors. He counts golfing, fishing and walking among his favor ite hobbies. He is a registered Repub lican and a member of Phi Kappa Sigma and Alpha Gamma Rho fraternities, the Masons, and the Con gregational Church. 19 N ews and Views OF THE BANKING WORLD By BEK HALLER, JR., Associate Editor J AMES S. NEELY, vice president of City National Bank & Trust Company, Kansas City, Missouri, is making his 15th visit to the baseball training camps in Florida. Mr. Neely, who is counted Kansas City’s number one baseball fan, is accompanied by Mrs. Neely and his nephew, who is doing the driving on the motor trip. Mr. and Mrs. Neely visited first the training camp of the Philadelphia Athletics in West Palm Beach and then were to go to the camps of the Cardinals and Giants in St. Petersburg and the camp of the Kansas City Blues at Lake Wales. Such stars as Ted Williams refer to Mr. Neely as “our banker teammate,” and say they look forward to the visit of the Kansas City banker with as much anticipation as Mr. Neely looks forward to his annual visit to the train ing camps. * * * Charles R. Gossett, president of the Security National Bank, Sioux City, Iowa, was honored recently by the Sioux City Junior Chamber of Com merce as “Boss of the Year.” Upon receiving the award Mr. Gossett said it was the climax of a big day for him. “Just a short time ago I received a cablegram from Germany telling me that I was a grandfather.” He was referring to the birth of James Charles Gossett at Augsburg, Germany, on Jan uary 28th to Lt. and Mrs. W. R. Gos sett. Lt. Gossett is commanding offi cer of a tank company at Augsburg. * * * Here’s a bit of philosophy with a self-evident moral which was printed ‘INVESTMENT ANALYSIS’ Again the NORTHWESTERN BANKER presents in this March issue its special “ Annual Invest ment Analysis.” Several downto-earth, factual articles have been written especially for you in this edition by competent authorities in the banking and investment fields. Since these articles deal with investment methods designed to yield the greatest amount of profit and investment security, we believe you will find the ideas in these feature stories well worth your time. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis by the Omaha National Bank in its publication, Around the Bank. Editor Mary Gleason saw it in the SecurityFirst National (of Los Angeles) News and decided it was worth reprinting. So do we: The Oyster and the Eagle When God made the oyster, He guar anteed him absolute economic and so cial security. He built the oyster a house, a shell, to protect him from his enemies. When hungry, the oyster simply opens up his shell and the food rushes in. Rut when God made the eagle, He said, “The blue sky is the limit. Go build your own house,” and the eagle went out and built his house on the highest mountain crag, where storms threaten him every day. For food he flies through miles of rain and snow and wind. The eagle, and not the oyster, is the emblem of America. * * * Best reason we know of for having a budget loan department in the bank: It’s an answer to the housewife’s la ment, “Too much month left at the end of the money.” * * * Many bankers from coast to coast felt the loss of an old friend and tutor last month when John P. Ryan, 73, died at his home in St. Louis, Missouri. Professor Ryan had completed 47 years of vigorous public speaking training among college students and business men. He taught at Grinnell College in Grinnell, Iowa, from 1903 to 1947, when he retired. In 1949 he joined the speech faculty at the Uni versity of Missouri. During his nearly five decades of educational work, Professor Ryan or ganized speech clubs for business men, became a pioneer teacher in Iowa adult education and taught public speaking classes to other groups of undergradu ate students in the midwest. His widow, Mrs. Elsie Ryan, will live in Columbus, Ohio, with her daughter, Mrs. Jean Squire. * * * The committee on promotion of the Financial Public Relations Association has prepared an excellent 24-page bro chure on operations of the School of Financial Public Relations, to be held on the Chicago campus of Northwest ern University from July 30th to Au gust 11th this summer. The booklet makes going back to school seem more attractive than a Miami Beach vaca tion in mid-winter. The School of Financial Public Relations is spon sored by the FPRA and requires three years’ attendance for completion. * * * When A. AY. Bird, cashier of the Dyersville National Bank at Dyersville, Iowa, sent out Christmas cards, they The new “ Bird house” recently comnleted in Dyersville, Iow a, by A . W . Bird. contained a picture of the Bird fam ily’s recently completed home. On the cards appeared this verse: “Our house is finished snug and sound, Complete with built-in shelves; Six months ago we broke the ground, Now, we are broke ourselves.” * * * J. Robert Cornell, vice president and cashier of the First National Bank in Spirit Lake, Iowa, calls the attention of the Northwestern Banker to a newspaper ad used by the Smith Trust and Savings Bank, Morrison, Illinois. Headed, “Believe It or Not,” the ad starts out in large type, “Once upon a time there was a Democrat in the White House who interpreted the Con stitution as NOT intended to bankrupt the nation through federal and foreign aid . . . REMEMBER CLEVELAND?” The ad then goes on to explain the time President Cleveland vetoed a bill appropriating $25,000 to buy seed corn for Texas farmers ruined by drought. “ I veto this appropriation,” said Presi dent Cleveland, “because there is no warrant in the Constitution of the United States for taking the funds which are raised from the taxes and giving them from one man to another, and I further veto it in order to teach the lesson that while the people sup(Turn to page 20, please) Northwestern Banker, March, 1951 20 W om en t*achForum b feetin f/s FORUMS — The experience of the First National Bank of Minneapolis w ith its Forums on personal financial planning has demonstrated that both men and women welcome practical inform ation on money management and investments. First N ational completed a Women’s Advanced Forum last December, and conducted its second M en’s Forum last month. Its first W om en ’s Forum, completed in Novem ber, 1949, developed such a high degree of interest that a repeat performance in the early winter of 1950 was neces sary to accommodate all who wished to attend. W iv e s’ discussion with their husbands of what they had learned at the forum was largely responsible for the demand for a M en’s Forum, held last spring. In the fa ll of 1950 a third W om en’ s Forum was conducted for another capacity attendance. The picture above, taken at one of the Forum meetings, shows standing room only. CONSERVATION CONTEST (Continued from page 15) bank by reason of the contest. We can make no attempt to measure the YOUR B A H K ’S DOORWAY to Foreign Trade success of our endeavors in bushels of corn or oats. Neither do we ever expect to declare any extra dividends as a result thereof. We do insist already, however, that this is the best thing we have ever done. We believe we have effectively and conclusively demonstrated our inter est in local problems in a manner that everyone can understand. We believe it to be somewhat of an innovation for a bank to be on the giving end of a proposition and that people like it. We hope the benefits of proper soil conservation practices we may be in strumental in getting started will be' reflected in our community for years to come. And we know we are re ceiving a considerable amount of third person publicity favorable to us and our profession.—The End. NEWS AND VIEWS (Continued from page 19) port the government, the government does not support the people.” Now we suppose Grover and F.D.R. are up there arguing it out! * * * The Minneapolis-Moline Your bank does not need to maintain accounts and arrangements in other countries to meet the foreign banking requirements of customers, if you use the services of the Foreign Department of American National Bank and Trust Company of Chicago. We are prepared to : • furnish you with facilities for establishing import letters of credit and for the handling of export collections. • transmit commercial and benevolent funds to foreign countries by mail, air mail or cable. • supply you with facilities for drawing of drafts on the principal cities of the world. • furnish up-to-date information about new regulations and credit conditions abroad. • equip you with all necessary forms, bearing the name of but one bank—your own—with out cost to you. May we tell you more about our Foreign Depart ment and how it can serve you? J k w n c tr M C a w M t a l l o n a / f t m /f a n d TrwMSf C o m p a n y o f C h i c a g o MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION LA S A L L E AT W A S H I N G T O N Northwestern Banker, March, 1951 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Company has come up with a revolutionary, selfpropelled farm machine that marks a milestone in the development of farm equipment. Initial production includes attachments so that it can be used as a self-propelled combine or two-row • CHICAGO 9 0, IL LIN O IS 21 to give better service to our customers To insure the fastest service available, we send your items by AIR whenever possible. If you are not using our speedy OVERNIGHT Collection and Transit Service, we ask you to try it. You'll be pleased with the difference! ssj 2* P MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION The Omaha National Bank https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, March, 1951 22 corn picker. Other attachments being tested and planned include a combina tion corn picker and sheller, a wiretying baler, and a forage harvester, but these may be delayed by material shortages. Conceived in 1945 by Martin Ronning, Minneapolis Moline’s chief engi neer of the farm machinery division, the two units in production are called the Uni-Combine and the Uni-Husker and are designed for quick mounting on a power unit called the Uni-Trac tor. A small hoist does the mounting and removing job in record time. Minneapolis-Moline’s money saving, time saving machine went into production at the conclusion of the centennial year observing invention of the first farm machine in 1850. * * * ep u cu a s ¿atú fate'S&MMseoMany banks have “ stepped up” the range and effec tiveness o f their facilities by tying in with Guaranty Trust Company correspondent services. Our close association with these institutions has proved the value o f this wider service. Today we have correspondents all over the United States and in all commercially important areas o f the world. W e welcome your bank’s usage o f our various services, or your request for additional information regarding the help Guaranty Trust Company can give you in energizing and broadening your customer relationships. Guaranty Trust Company Providing every correspondent service— domestic, foreign, fiduciary, portfolio— that your hank or of New York your customers may require Capital Funds $374,000,000 140 Broadway, New York 15 Fifth Ave. at 44th St. New York 18 Madison Ave. at 60th St. New York 21 London Northwestern Banker, March, 1951 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Paris Rockefeller Plaza at 50th St. New York 20 Brussels Member Federal Deposit Insurance Corporation When “that terrible storm” hit southeastern states early last month, the Northwestern Banker received an on-the-spot report from Publisher Clifford De Puy, who was motoring with Mrs. De Puy through Kentucky and Tennessee on their way to Biloxi, Mississippi. Here’s how Publisher De Puy describes the storm: “ Since there was no telephone com munication in or out of Nashville, I had no way of phoning Powell Stamp er (assistant vice president, National Life and Accident Insurance Company of Nashville) that I would be two days late, even if I could get through. So Friday morning we awakened in Hop kinsville, with the temperature 17 be low zero, but decided after putting on our chains to make Nashville if pos sible Friday, although it was only 72 miles away. “After crawling over the ice and snow at a snail’s pace, we reached Nashville at 2 p. m. without stopping for lunch. The city really was a wreck. Automobiles were abandoned for miles along the road, telephone poles and wires were down, office buildings, stores and factories were closed because of lack of light, heat and transportation for employes, as well as customers. Nashville news papers carried no advertising for three days because the department stores were closed. Hundreds of people slept in hotel lobbies and all motels were filled in spite of their lack of heat. “We arrived in Biloxi Sunday after noon at 5:30 to find the temperature a delightful 60 degrees and the hotel crowded, although everyone was talk ing about their ‘cold spell’ which gave them an all-time low of 10 degrees above. “Thus endeth the saga of a trip through the ‘Sunny Southland’ in snow, sleet, ice and 17 below zero tem peratures. 23 \ x m r F e e d e r d e p o s it o r s w i l l a p p r e c ia te th is s e r v ic e Over three quarters of a century’s experience has proved to us the value of speedy transmission o f proceeds from the sale of live stock in Chicago. The Stock Yards postoffice is just across the street and we mail you the advice o f credit on the day o f receipt. T o give your depositors the advantage of this fast serv ice, ask them to instruct their Chicago commission men to route the money through this bank for their credit on your books. W e shall be pleased to send you instruction cards. LIVE STOCK BANK tA a lfo n a / ESTABLISHED 1868 U N IO N ST O C K YARDS > https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M em ber Federal Deposit Insurance Corporation Northwestern Banker, March, 1951 24 ANNUAL INVESTMENT AN AL Y SIS—P a g e s 2 4 to 4 5 H ow Y ou r In vestm en t P ortfolio Is A ffected B y E xcess P rofits Tux Written Especially for The NORTHWESTERN BANKER By EDWARD L. MORITZ and WILLIAM C. NORBY Assistant Vice Presidents Harris Trust & Savings Bank Chicago EDW ARD L. M O R IT Z ANKS have had an opportunity to study the effects of the new ex cess profits tax as it applies to 1950 earnings, having just been in the process of preparing returns. But with a rising volume of loans and deposits, earnings in 1951 may differ considerably from the 1950 pattern and the excess profits tax may hit hard unless tax planning is started now. In this mobilization period, of course, all bankers expect to make their full tax contribution to finance the in creased expenditures but, at the same time, all taxpayers are privileged to arrange their affairs to keep their tax burdens at a lawful minimum. There appear to be various opportunities open to the portfolio manager in min imizing this b u r d e n , particularly switches from taxable to tax-exempt securities. B Invested Capital Method Let us look at a typical bank to see how a move from corporates or gov ernments to municipals might affect taxes in 1951. We shall assume that this bank is already subject to the excess profits tax and has found the invested capital method most favor able to it. This bank, which we shall call the “invested capital” bank, has: Invested Capital ................. $ 1,000,000 Total Resources ................... 12,000,000 Of which Municipals (inad missible assets) are......... 3,000,000 All Other Assets (admissible assets) ................................ 9,000,000 The original excessprofits tax credit for 1951 is calculated by: Northwestern Banker, March, 1951 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis (a) Computing the ratio of admissible assets to total resources— $9,000,000 to $12,000,000 or............................................................... 75% (b) Determining adjusted invested capital—75% of $1,000,000 or. .. .$750,000 (c) Calculating the excess profits tax credit— 12% of $750,000.......... 90,000 We shall assume that the bank de cides to add $1,000,000 to its municipal account, selecting high-grade names of short maturity on about a 1 per cent yield basis, and to sell $500,000 U. S. Treasury 2s of December 15, 1954-52 on a 1.63 per cent basis, and $500,000 of various short-term railroad equipments on a 2.00 per cent basis. The bank decides to make this move early in the year, so for convenience we will assume that it is effective for a full 12 months. The revised excess profits tax credit for 1951 is then calculated: (a) Ratio of admissible assets to total resources— $8 ,000,0(M) to $12,000,000—is lowered to...................................................................................... 66% % (b) Adjusted invested capital then becomes................................................. $666,667 (c) Excess profits tax credit— 12% of $666,667—is reduced to................... 80,000 Earnings of the bank before income and excess profits taxes are assumed to be budgeted at $150,000 for 1951, of which $120,000 is taxable and $30,000 is tax-exempt. The revision in the investment account would produce the following tax savings: Normal Tax Net Income...................................... Normal Tax (25% )............................................. Surtax (22% on excess over $25,000)............... Excess Profits Tax (30% on excess over credit) Total Taxes ................................................... Net After Taxes....................................................... Tax-Exempt Income .............................................. Net Income ........................................................... Before Revision After Revision $120,000 30,000 $101,850 25,462 . . 20,900 9,000 16,907 6,555 $ 59,900 $ 48,924 60,100 30,000 52,926 40,000 $ 90,100 $ 92,926 . A 4 It is not too early for bank portfolio managers to review 1951 budget estimates of earnings, and consider investment moves which can minimize the effects of higher corporate taxes, including the Excess Profits Tax. A change in investment policy made now will be in effect for most of the year, hut if action is postponed until later, a greater change will he necessary to accomplish the same objective. ’ This shift of $1,000,000 from tax able to tax-exempt securities suggests three observations: 1. The gain in the income is $2,826, or 3.1 per cent. There is an addi tional yield of 0.28 per cent on the $1,000,000 which was shifted from taxables to municipals. 2. If the bank had waited until July to make the shift, it would have added only $1,413 to net income for 1951. Or, stated the other way, a switch of $2,000,000 would be needed to accomplish the original result as far as 1951 is concerned. 3. If the recent Treasury proposal for a 55 per cent combined normal and surtax corporate rate for 1951 were to be adopted, the shift to mu nicipals would yield an additional 0.43 per cent on the $1,000,000. In comparing fully taxable and taxexempt securities of comparable qual ity and maturity, a major considera tion, of course, is the net yield after taxes. Since all earnings subject to the excess profits tax are, in effect, being taxed at the rate of 77 per cent, the net yield on fully taxable issues is only 23 per cent of the gross return until the 62 per cent over-all limit becomes effective. At the same time, however, an investment in tax-ex empts will suffer some reduction in yield due to loss of some of the base credit on account of inadmissible as sets. Two factors will determine the extent of this reduction—the invested capital ratio and the excess profits tax credit bracket. Many combinations are possible but, as the following table indicates, a bank with a low capitali zation in the 8 per cent credit bracket will realize the least yield reduction, while the strongly capitalized bank will find a shift less profitable or even unprofitable. Banks with other invested capital ratios can readily compute the yield reduction: 1. Divide total invested capital by total assets to get invested capital percentage. 2. Multiply percentage by excess 1 3 5 16 year years years years 1 .5 8 % 1 .6 4 % 1 .7 8 % 2 .2 2 % profits tax credit bracket—12, 10 or 8 per cent. 3. Multiply (2) by excess profits tax rate—30 per cent. Answer is yield reduction. The possible gain on a shift to municipals can thus be readily cal culated by applying the yield reduc tion to the proposed purchase and comparing the net result with the yield less 77 per cent on the taxable securities to be sold. For the “in vested capital” bank, we purchased municipals on a 1.00 per cent yield but the net effective yield was only 0.70 per cent, since the bank was in the 12 per cent EPT credit bracket and had a 12 to 1 capital ratio. The Approx. Present NET Y IE L D S on representa tive high grade T A X E X E M P T BON DS Net yields to banks after various Federal taxes (overall rates) 47% 50% .8 4 % •79% •93% .8 2 % .9 4 % .8 9 % 1 .1 8 % 1 .1 1 % 55% .7 1 % .7 4 % .6 0 % 1 .0 0 % 77% .3 6 % .3 8 % .4 1 % •5 1 % .9 0 % - .9 5 % 1 .0 0 % -1 .0 5 % 1 .1 0 % -1 .1 5 % 1 .3 0 % -1 .4 5 % N o te: Net yields after taxes on taxable investments will be less after each future increase in Federal Tax rates. Yields from tax exem pt investments or net return remain the same— the only bank investment available where N E T yield is certain for the future. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis C. N O R B Y Ratio of Invested Capital to Yield Reduction on Tax-Exempt Bonds Total Assets 12% Bracket 10% Bracket 8 % Bracket 5 to 1 or 20% ............................................ ___ 0.72 0.00 0.48 10 to 1 or 10% ............................................ ___ 0.36 0.30 0.24 12 to 1 or 8 % % .......................................... ___ 0.30 0.25 0.20 20 to 1 or 5 % ............................................ ___ 0.18 0.15 0.12 The Evidence Approx, yield before taxes U. S. Govt, taxable securities W IL L IA M taxable securities sold had an average yield of 1.81 per cent and a net yield of 0.42 per cent after total taxes of 77 per cent. Subtracting 0.42 per cent from 0.70 per cent gives a net gain in yield of 0.28 per cent, which was the result shown above. Average Earnings Method Many more banks probably will be using the average earnings method of computing the base credit than was the case under the earlier law. Here again, budget forecasts of earnings and projected invested capital will be important in determining the extent of a possible gain on a shift to taxexempt securities. At first glance, it may appear that the possibilities are somewhat greater under the average earnings method, since there is no loss of base period credit on a shift to inadmissible assets, as in the case of the invested capital method. Thus, on a purchase of $1,000,000 municipals yielding 1 per cent from the proceeds of governments and corporates pro ducing an average yield of 1.81 per cent, the gain would be 0.58 per cent (1.00 per cent less 23 per cent of 1.83 percent) instead of the 0.28 per cent which this shift produced under the invested capital method. It should be carefully noted, how ever, that any increase in admissible Northwestern Banker, March, 7951 26 Investments ...STRAIGHT AS AN ARROW TO ANY SPOT IN CALIFORNIA W ith Bank of America as your California correspond ent you are able to send your items for any of more than 300 communities direct to this Bank's branches in those localities. One account with either the Los Angeles or San Francisco office of Bank of America makes this time saving California-wide direct routing service available. l&unk oC Àtttetrtra NATIONAL M EM B E R FEDERAL WSttël DEPOSI T Northwestern Banker, March, 1951 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ASSOCIATION I N S U R A NC E CORPORATION assets after January 1, 1950, offsets an equivalent increase in invested capital resulting from retained earnings or additional stock after the base period. Taxpayers using the average earnings method are allowed an additional credit of 12 per cent on increased capi tal, but such additional credit is lost in whole or in part if inadmissible assets increase. Thus, if the “average earnings” bank had retained earnings of $50,000 in 1950, it would be en titled to an additional base credit of 12 per cent, or $6,000 in 1951, providing a tax saving of $1,800. Since this is washed out by a shift of $1,000,000 to municipals, it would have the effect of reducing the net gain to 0.40 per cent for 1951 on the example above. There is no set formula by which the yield reduction on tax-exempt bonds can be calculated for banks using the average earnings method, as was done for the invested capital method, since it will depend on the amount of additional invested capital in relation to the addi tional tax-exempt securities. With the use of budgetary projections, each bank can determine its own position using the approach outlined. It should be pointed out that the loss in credit for additional capital tends to become cumulative, so that after say four years in which earnings of $50,000 are retained each year, the total additional base credit lost is $24,000. It should also be noted that this credit can be lost with a rela tively small shift in the portfolio, and that on small shifts the yield reduc tion per $1,000 invested is much great er since the lost credit is spread over fewer bonds. In fact, this aspect of the average earnings method may make a shift to tax-exempt securities unprofitable in some cases. "Notch" Earnings Before 1950, banks earning between $25,000 and $50,000 were familiar with the “notch” provision in the old cor porate tax rate, whereby earnings in this bracket were taxed at 53 per cent, while earnings below $25,000 were taxed at only 25 per cent. This pro vision has been repealed but now all banks will feel the effects of a “notch” rate when they move into the EPT bracket because additional earnings are taxed at 77 per cent (until the over-all maximum of 62 per cent is reached). For most banks the jump will be 47 to 77 per cent, but for banks with actual earnings of about $25,000 and the minmum EPT credit of the same amount, the rate will jump from 25 to 77 per cent above $25,000. Budget estimates of 1951 income, therefore, will also be important for the bank which may find itself mov- Investments ing into EPT by reason of earnings gains. A moderate shift to municipals early in the year may forestall this development. Partially Exempt Governments Interest on partially-exempt govern ments is exempt from excess profits tax as well as normal tax. They are, therefore, classed as inadmissible as sets, although still subject to the sur tax of 22 per cent. At present gov ernment yields, switches from fully taxables to partially-exempts offer modest net gains in some circum stances, and may be attractive to banks which are already carrying as many municipals as they consider advisable. Here are two examples of the possi bilities of this type of shift for banks using the invested capital method: per cent basis would reduce gross yield by 0.04 per cent, but increase the net yield by 0.09 per cent and shorten the maturity nine months. The computa tions: Recent Price ................................................................... Gross Yield ...................................................................... Income and Excess Profits Taxes (77% ).................... Capital Gains Tax (25% )................................................ Net Yield ...................................................................... *On coupon rate only. fOn 0.19% average annual capital gain. Bank A .. 10% Bank B 20 to 1 12% Yield Reduction on Partially-Exempt Bonds (from table . .. 1.13% Net Yield . . 0.16% Capital gains are exempt from EPT and thus enjoy advantages over regu lar income. Within the government list there are a few opportunities to add a little to income by using some of the recent note issues now selling at discounts. A switch of the 1V2 per cent notes of 3/15/55 selling recently on a 1.69 per cent basis from the 1% per cent notes of 12/15/55 on a 1.73 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 47 per cent corporate tax, the market presents opportunities to banks in the 77 per cent EPT bracket. Most banks paying an excess profits tax will be able to achieve tax savings 11/2% Notes The excess profits tax act has been termed one of the most complicated laws ever passed by Congress and, in many ways, more involved than the 0.18% 1.13% 0.70% 1.81% 0.42% 0.28% World War II act. Any comments or conclusions made today are naturally tentative and subject to revision as experience and administrative rulings are accumulated. But there are some considerations which portfolio manag ers will keep actively before them. With high-grade municipals general ly selling at about a normal spread with governments after allowing for a 27 1%% Notes 3/15/55 90 8/32 1.69% 1.15%* 0.05%t 12/15/55 100 3/32 1.73% 1.33% 0.49% 0.40% by a shift to municipals, but there are some who may not. For the most part, these probably will be banks with strong capital positions using the invested capital or banks using the average earnings method and adding rapidly to invested capital. Any shift to municipals will, of course, be tempered by considerations of over-all investment policy. Within the government list, however, there are modest opportunities for tax sav ings through a shift to partially ex empt issues or issues selling at a discount. Shifts to tax-exempts also offer some earnings protection against still higher tax rates now under discussion. These do not yet seem to have been fully discounted in the market. By early consideration through use of budget forecasts, objectives for 1951 can be achieved by a smaller change in investment policy than if action is postponed until later in the year.—The End. Northwestern Banker, March, 19S1 28 Investments Assistant Secretaries When CHICAGO Was a City o f 500 , 0 0 0 ... this small advertisement of N . W . Harris & Co., now the Harris Trust and Sav in gs B ank, appeared in Newest Incentive Plan Chicago newspapers. “ Million-Air Holidays,” a completely new employe incentive program with travel r a t h e r than merchandise awarded to the winners, is being in troduced to banks and other business organizations by American Express, in cooperation with American Airlines and the Carr Speirs Corporation. The first packaged incentive pro gram to really feature travel as prizes, the plan is designed specifically as an aid to industrial and commercial firms to increase sales, production, reduce absenteeism, reduce spoilage or stimu late any other activity requiring indi vidual effort. Program materials and the operat ing procedure for the “ Million-Air Holidays” incentive plan are supplied to subscribing firms by the Carr Speirs Corporation, Stamford, Connecticut. American Airlines provides transpor tation for the prize winners and Amer ican Express Travel Service handles the tour feature arrangements of the prize trips. Since that day in 1 8 8 2 , “ BONDS—Government, County, City, Town; Water and School . . . ” have always been an important part o f our investment business. Pioneering for 69 years in bonds which “ we own and recom mend fo r sound i n v e s t m e n t we have supplied customers with more than $ 9 ,0 0 0 ,0 0 0 ,0 0 0 o f such securities. Upon our policy, experience and record, we have served many conserv ative investors and their families through fou r generations. INVESTMENT DEPARTMENT Harris Trust a n d Savings Bank Organized as N. W. Harris & Co. 1882 • Incorporated 1907 115 WEST MONROE STREET, CHICAGO 90 Member Federal Reserve System • Member Federal Deposit Insurance Corporation P R I E S T E R & CO. Eighth Floor Davenport Bank Building DAVENPORT, IOWA Listed and Unlisted Securities H. E. Jacobs Northwestern Banker. March, 7957 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Charles E. Cockey, Henry G. Meyer, Robert W. Ostermeyer and Albert Roeder have been appointed assistant secretaries of Manufacturers Trust Company, it was announced by Henry C. Von Elm, president. Messrs. Cockey, Meyer and Oster meyer all were assistant managers in the persona] loan department prior to their present promotions. Mr. Cockey is supervisor of the legal division, Mr. Meyer is in charge of the FHA mod ernization loan section, and Mr. Oster meyer is a member of the executive staff of the department. Phone 3 9931 H. M. Sweet H. C. Priester Speaking Contests “Basic Concepts of Our American Heritage of Freedom” is the subject for the public speaking contests to be held this month within individual chapters of the American Institute of Banking, it was announced by J. Kaye Ewart, president of the Institute and vice president of the National Bank of Washington, Tacoma, Washington. The A.I.B. is the educational section of the American Bankers Association. The chapter contests are the first step in the selection of the participants for the National Public Speaking con test for the A. P. Giannini Educational Endowment prizes at the A.I.B.’s na tional convention in Pittsburgh, Penn sylvania, next June 4th to 8th. Futile Tourist: “ How did that Australian bushman go crazy?” Guide: “ He got a new boomerang and tried to throw the old one away.” 29 W h at W iU Y ou r Taxes B e? 25% ? 55% ? 77%? There Are Several Things You Can Do to Effect a Tax Savings, Regardless of the Rate Written Especially for The N O R T H W E S T E R N B A N K E R By EDWARD J. REDDEN Halsey, Stuart & Company, Inc. Chicago URING the past year Federal cor poration tax rates were changed twice; first jumping the combined normal and surtax rate (for net earn ings over $25,000) to 45 per cent, then to 47 per cent. This year from all indications they will be changed at least once, maybe twice or more, and needless to say the change or changes will be upward and not downward. In addition to the uncertainty as to the amount of normal and surtax rate increases, we also have excess profits taxes. These already have taken an additional cut of 30 per cent on part of some banks’ earnings, and these, too, may be changed further in 1951, and most certainly not downward. In discussing this problem many country banks, that do not maintain special legal and tax departments, say they find at the year end they are paying out a much greater part of their net earnings in taxes than ex pected. In some cases an adjustment in their investment portfolio, aside from local loans, would have saved thousands of dollars had it been real ized before the year end figures were completed and turned over to the ac countants figuring the tax returns. The year 1951 is still young. Even though it is impossible to determine whether a minimum tax rate of 25 per cent or a maximum rate of 77 per cent will apply to a bank’s 1951 earn ings, there are some decisions which can be reached now, designed to effect a saving in excess taxes regardless of the rate. D Three Ways to Save The procedure may well follow these steps: First, make a rough estimate of the amount of the 1951 gross earnings. Most banks feel that these will be about the same as 1950; last year’s figures will serve as a guide. Second, estimate whether these earn ings will or will not be hit by present https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis excess profits taxes, with a check as to whether the bank can use the ex emption based on capital, surplus, etc., or whether it must use the average earnings method based on the best three of the last four years. If it is necessary to use the latter, the earn ings base, then 1951 earnings are al ready subject in part to excess profits taxes of 30 per cent over and above the normal and surtax rates. This could, therefore, roughly mean a 77 per cent tax on approximately 15 per cent of net earnings. Third, review the bank’s investment portfolio, aside from local loans. Is this carried in large part in taxable securities that reflect a habit follow ing the path of least resistance? Or do these bonds, at any rate, represent an amount greatly in excess of any conceivable immediate cash require ment in addition to regular cash re serves? If so, a quick glance at a “ Taxable vs. Tax Exempt” chart, and a conversion of part of such holdings of taxable investments into tax-ex empt investments can prove quite profitable. Shift to Tax-exempt During the past year there has been evidence of decided shift from taxable to nontaxable investments by the 200 largest banks in the United States. In the first six months of 1950 there was approximately a 20 per cent increase in the holdings of tax-exempt securi ties by this group of banks. Prelimi nary figures for 1950 would indicate that total deposits for U. S. banks increased about four billion dollars and tax-exempt investments increased almost two billion dollars. In the state of Iowa a recent report shows that Iowa state banks decreased tax able investments, other than local loans in 1950, by fifty-eight million dollars, or approximately 814 per cent, and increased tax-exempt investments by 105 million, or approximately 14% E D W A R D J. R E D D E N Give this question of taxes immediate consideration” per cent. With further changes in tax rates to be expected, this trend in investments is quitely likely to con tinue. Because a large number of banks are making this change from taxable to tax-exempt investments, the ques tion naturally arises as to whether it is possible and profitable. The answer is most definitely yes. Tax-exempt bonds—the obligations of states, coun ties, cities and school districts—are for tunately still available in reasonably substantial amounts. The yield from these tax-exempt securities, which are net yields, are exempt from all present federal income and excess profits taxes and are, therefore, perhaps more fa vorable today in comparison to taxable yields than has been true in many years past. For example, in 1946 when bank tax rates were much lower than those now prevailing, a well known published index of tax-exempt average bond yields stood at 1.37 per cent. This same index of averages of tax-exempt yields is currently 1.72 per cent. Word of Caution In review, a word of caution seems advisable: many banks have been and are now reviewing their positions to attempt to estimate the bite 1951 taxes will take out of their earnings. Many are finding it advisable and profitable to shift part of their investments, oth er than local loans, from taxable to tax-exempt securities, either through actual change of present securities or through reinvestment of early maturi ties. At present the supply of taxexempt securities eligible for bank in vestment as to maturity and quality is still reasonably good. However, this supply is likely to be curtailed Northwestern Banker, March, 1951 30 Investments Sixty-One Years INVESTMENT BANKING 1890-1951 Stifel, Nicolaus & Company INCORPO RAT E D ST. LOUIS • CHICAGO JAMES C. SHAW OWEN P. McDERMOTT Si! aw, M cDermott & f^o» INVESTMENT SECURITIES MUNICIPAL INDUSTRIAL RAILROAD PUBLIC UTILITY 916 Liberty Bldg. D ES Phone 3-6119 MOINES 9, IOWA somewhat due to the increasing re strictions and decreasing material supplies due to the defense effort or war needs. At the same time the de mand for tax exemption is increasing with the greater realization of the im pact of present and possible future taxes. The old-fashioned law of sup ply and demand will probably work out just about as usual if these condi tions continue to prevail. It seems only logical for any bank to give this question of taxes imme diate consideration and thereby bene fit to the maximum from 1951 net earnings as well as in future years.— The End. Total Net Assets Total net assets of Investors Mutual, Inc., largest mutual fund affiliate man aged by Investors Diversified Services, Inc., have passed the $250,000,000 mark, it was announced by Harold K. Bradford, president. Current net as sets of Investors Mutual, Inc., the world’s largest balanced fund, were $252,504,102 at the close of business re cently, as compared with $183,440,408 a year ago and $83,374,643 five years ago. Club Elects Thomas H. Coogan, secretary of Bankers Safe Deposit Company, has been elected president of the Quarter Century Club of Bankers Trust Com pany, New York. He succeeds Ray mond B. Gahs, assistant vice president of the bank. At the same time 54 new members were inducted, bringing to 396 the to tal members of the club. Of this num ber 67 are pensioners. Other officers elected were Harold C. Lanyon and Rose J. Shaw, as vice president and secretary, respectively, and Howard R. Caldwell, Hugh H. Curran, Rita Drisbrow, Percy W. Edwards and William L. Peter as members of the board of governors. Joins Continental INVESTMENT SERVICE FOR BANKS Specializing in Nebraska Municipal Bonds KIRKPATRICK - PETTIS COMPANY 540 Omaha National Bank Bldg. OMAHA, NEBRASKA LINCOLN OFFICE— 618 First National Bank Bldg. Northwestern Banker, March, 1951 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Russell N. “ Bob” Mackey, for 20 years a national bank examiner in the seventh Federal Reserve District, with headquarters in Chicago, has joined the staff of the Continental Illinois National Bank and Trust Company of Chicago. Mr. Mackey is a native of Iowa and acquired his early banking experience in that state. In recent years he has been engaged principally in examining the larger banks of the district in such metropolitan areas as Chicago, Detroit, Des Moines, Indian apolis and Milwaukee. 31 / H ensons 1 1 Htut Its Half State and M unicipal Hoads These Reasons Are Safety of Principal, Diversification, Marketability, and Tax Exemption Written Especially for The NORTHWESTERN BANKER By JAMES F. QUIGG General Manager Municipal Department Paine, Webber, Jackson & Curtis Chicago S OF December 31, 1950, obliga tions of state and political sub divisions held by the one hun dred largest banks in the United States amounted to $3,166,587,858. This rep resents an increase of $91,941,627, or 2.99 per cent, as compared with Sep tember 30, 1950, and an increase of $817,370,838, or 34.79 per cent, as com pared with December 31, 1949. It is also reported that “tax free” holdings of all banks as of June 30, 1950, was $7,477,196,000, or an increase of $1,471,851,000 for the year. When you con sider that the total of outstanding “tax free bonds” amounts to approxi mately $23,600,000,000, it can be seen that, as of last June 30th, banks held approximately 31.6 per cent of these outstanding obligations. A Why They Buy Them Why do banks purchase state and municipal bonds? In my opinion the four chief reasons are: safety of princ i p a 1, diversification, marketability and tax exemption. Over the years, experience has taught us that as a class, state and municipal bonds have proven to be one of the safest and most conservative forms of investment. Di versification is secured through a wide selection of credits and maturities. With few exceptions municipal bonds enjoy a ready market, with hundreds of dealers throughout the country maintaining active trading depart ments in them. Tax exemption on in terest is a very important factor to a bank. Under present corporation tax rates, a 2 per cent income from state and municipal bonds is equiva lent to a taxable income of 4.25 per cent in the $25,000 to $50,000 bracket and 3.22 per cent on over $50,000. With very definite prospects of con https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis siderably higher taxes, the advantage in “tax frees” increases substantially. The heavy bank buying in “tax frees” during 1950, as referred to above, took place in a rising market. The Daily Bond Buyer “20-bond aver age” (yield), on a selected list of 20year bonds, was at 2.07 per cent at the beginning of 1950 and closed the year at 1.70 per cent. This amounts to a differential of over $60 per bond on a 20-year period. Most of this price rise took place in the second half of the year and can be attributed to our Korean trouble. Most people imme diately felt certain of higher taxes and restrictions on public building and im provements other than those related to defense. This, of course, would reduce new municipal financing. Municipal Volume During 1950 the market in munici pals absorbed a volume of 5,818 new issues for a total of $3,684,000,000. This is the largest amount ever issued in one year. It is interesting to note that since the war, beginning with 1946, we have had $13% billion of new financing, and that as of June 30, 1950, there was outstanding approximately $23,600,000,000 “tax free” bonds, which is only about $4 billion more than was outstanding in 1933. The Daily Bond Buyer estimates $3.3 billion of new financing for 1951, di vided $2 billion for various public purposes, $500 million for funding and refunding housing notes, $500 million for new housing projects, and $150 million of bonds authorized by four states but unissued. This total amount, in my opinion, could be materially reduced by shortages of labor and materials. Many high officials have advocated the elimination of tax exemption on JAM ES F. Q U IG G “ W e continue to recommend purchase’ ’ municipals. This is not new, as we have had these attacks on tax exemp tion many times over the past years. In view of the large lobby of state and local officials opposed to a change, I doubt if Congress will do anything. Personally, I feel that the only legal method to eliminate tax exemption would be through a constitutional amendment. However, in my opinion, any change would certainly not affect the tax free status of outstanding loans. The Federal Reserve Bank of Rich mond’s Monthly Review for Novem ber says, regarding the popularity of municipals: “Municipal securities, ac cording to many authorities, offer the best hedge in the bond market against wartime inflation. Widespread accept ance of this theory has been indicated during recent months by the extraor dinarily heavy sales of state and local securities to investors, and at rising prices and lower yields. This “flight from taxes” was touched off by Presi dent Truman’s proposal on July 19th that the greatest possible amount of a heavily increased military budget be financed by higher taxes.” Inasmuch as the Treasury Depart ment and the Federal Reserve Bank apparently have not, up to this date, agreed upon the pegging of govern ment bonds, I would hesitate to pre dict immediate price movements on municipals. However, with increasing taxes and a possibility of fewer new offerings, I feel that there should be no large fluctuations in price. We continue to recommend the pur chase of state and municipal bonds, by banks, for conservative investment. —The End. Northwestern Banker, March, 1951 32 Investments Brenton Endorsed The Illinois members of the Ameri can Bankers Association, in a special meeting following the afternoon ses sion of the Mid-Winter Conference of the Illinois Bankers Association held in the Hotel S h e r m a n , Chicago, adopted the following resolution: “Whereas, We, the Illinois bank members of the American Bankers Association, believe that in these times of stress and strain the officers of the Association should be men of the high est capacity and experience and “Whereas, Amongst the very excel lent men who have announced their candidacy for the office of vice presi dent, we believe that W. Harold Bren ton has the broadest background of knowledge of banking, agriculture and industry, and “Whereas, In 1950 we endorsed W. Harold Brenton as candidate for vice president of the American Bankers Association, only to have Mr. Brenton modestly step aside and withdraw his name from the race in July of 1950 “ Now, Therefore, Be It Resolved By the Illinois members of the American Bankers Association, in a special meet ing duly convened at the Hotel Sher man, Chicago, February 8, 1951, that we again feel that W. Harold Brenton is the man to be elected to this office at the convention in Chicago in 1951 and we recommend that the American Bankers Association’s vice president for Illinois appoint a committee of three to further his candidacy for the office of vice president of the Ameri can Bankers Association.” Aconsistent role, .. specializing in BONDS R>r half a century this firm has played an undeviating role in the financial life of America— a role based on the steadfast policy of underwriting and dis tributing bonds, notes, debentures and railroad equipment trust certificates — exclusively • In this specialized role, the nationwide Halsey, Stuart organization has consistently provided for the needs of worthy borrowers—states, municipalities, corporations, industries, utilities and railways—and for the investment requirements of conservative bond buyers. • Halsey, Stuart’s broad experience in this field makes for exceptional service to both issuers of and investors in bonds, whether their requirements are large or small. Send for our latest offering list, w ithout cost or obligation. AN ENVIABLE RECORD Railroad equipment trust cer either alone or with associates, tific a te s , has purchased and offered the becau se o f th eir proved record of safety through certificates of 50 American rail three-quarters of a century, roads aggregating $782,531,000. occupy an enviable position W e deal in and are prepared to among all investments. In the provide quotations for the certifi past d ecad e cates of most American railroads. Halsey, Stuart, 0 0 Drovers Appointments 0 HALSEY, S T U A R T & CO. I n c . 123 S OU T H LA S A L L E S T R E E T , C H I C A G O 90 • 35 WA L L S T R E E T , N E W Y O R K 5 AND OT HE R P R I N C I P A L C I T I E S Si (S John M. Beyer Calvin L. Rueffel Iowa and Illinois MUNICIPAL BONDS BEYER-RUEFFEL & CO. Investment Securities Kahl Building Northwestern Banker, March, 1951 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Davenport, Iowa The directors of the Drovers Na tional Bank of Chicago recently an nounced the appointment of Stephen O. Brattleaf as assistant vice president, and Alfred T. Schuh as assistant cash ier. Mr. Brattleaf left his position as chief of the loans division of the Re construction Finance Corporation Chi cago Agency and assumed his new duties at the Drovers National on March 1st. He has had many years of experience in handling industrial loans, including those for defense pro duction. Mr. Schuh has been with the Drovers National for 16 years, in cluding service in the U. S. Army from 1943 to 1946. He is now a first lieuten ant in the Air Corps Reserve. The surplus account of the Drovers National was increased $250,000, mak ing the total surplus $1,500,000 and the capital $1,000,000. The directors of the Drovers Trust and Savings Bank also increased the surplus amount $250,000, making the capital $500,000 and the surplus $750,000. 33 The Future for Tux E xem pt Securities Seem s ssured If the Threat of Taxing Municipals Brings a Depressed Market It Should Be Regarded as a Buying Opportunity Written Especially for The NORTHWESTERN BANKER By NEWELL S. KNIGHT Vice President Mercantile-Commerce Bank and Trust Company St. Louis W I L L th e y ta x m u n icip a l b o n d s? T o start w ith , a d efin ite p e r son a l c o n c lu s io n to th is is “ N o .” L lo y d ’s m ig h t q u o te in su ra n ce od d s at 50 to 1, w h ic h p r o v e s th ere is a m a th em a tica l p o s s ib ility , an d I m ig h t b e w r o n g in th is c h a n g in g w o rld . T a x m a tters b e c o m e im p o r ta n t in th e s p r in g o f ea ch y ea r. T a x e x e m p tio n b e c o m e s a m a tter o f p o litic a l in te re st e v e r y tim e a w a r c o n fr o n ts us and h e a v y ta x es are in th e offin g. I r e c a ll in F e b r u a r y , 1942, tw o m o n th s a fte r P e a rl H a rb o r, H e n r y M orgen th a u (th e n S e cre ta ry o f th e T r e a s u r y ) in a sp e e ch m a d e in C levela n d , p r o p o s e d th e ta x a tio n o f m u n icip a ls. P r ic e s o n m u n icip a ls d r o p p e d 15 p er c e n t in y ie ld o v e r n ig h t w h ic h , o n a tw e n ty -y e a r b o n d is a b o u t 2!4 to 2Vz p oin ts. N o w th at w e are again at th e o u tse t o f a te rrific n a tion a l e x p e n d itu re and h e a v y ta x es are b e fo r e us, th is b ig lo o p h o le fo r o u r g rea test in c o m e s is u p fo r d iscu ssio n . P r e s i d e n t T ru m a n h as r e c o m m e n d e d th at th e H o u s e W a y s and M ean s C o m m it tee se a rch fo r m e th o d s o f a c c o m p lis h in g it. S e cre ta ry S n y d e r has p r o p o s e d th a t it be d on e. F r a n c is A d a m s T ruslo w , fo r m e r p re s id e n t o f th e N e w Y o r k C u rb E x c h a n g e , c ite d it in a r e c e n t ad d ress. A lm o s t a n y o n e w ill a d m it th is a n o m a lo u s situ a tio n th at o u r la rg e st in c o m e s ca n e n jo y ta x fr e e d o m th r o u g h th e o w n e r s h ip o f state an d m u n ic ip a l b on d s. T h e n w h y are th e y n o t ta x ed ? E v e r y state, city , s c h o o l b oa rd , c o u n ty and r e v e n u e a u th o r ity e x p e r ie n c e s th e ir g re a te st b en efits w h e n ta x e s are h ig h est, b e ca u se th e y are reflected in a lo w e r ra te fo r th e p r ic e o b ta in e d fo r th e ir b o n d fin a n cin g . T h e y p o in t o u t th at th e rate o n th e m o n e y is so lo w th at th e sm a ll y ie ld s o b ta in a b le is n o rea l in c o m e to th e b o n d h o ld e r a n d at th e sam e tim e th e p o o r ta x p a y e r ’s b u rd e n , w h o c o n tr ib u te s to th e m u n ic ip a lity , is th e r e b y lig h ten ed . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis a lo n e an d let th em se rv e th e c o m m u n ity b y lo w e r in g th e ta x rate. T h e ir r e cip ie n ts are sm a rt e n o u g h to find a h a v e n w h e r e y o u w ill n o t r e c e iv e th e ben efits. The Taxpayer N E W E L L S. K N IG H T “ My personal conclusion is ‘No’ ” T h e y ca n see in it th e rich m an sa c r ific in g a h ig h e r re tu rn to m a k e a g a in fo r th e lo ca l ta x p a y er. Who Does Pay? A ll th ese fa c to r s are tru e, so w h o p a y s? A g a in it is o u r g o v e r n m e n t tre a s u ry th at is in th e m id dle. A n y a ttem p t to c o n tr iv e a m ea n s o f p ic k in g u p th is loss o f in c o m e ta x es w ill o n ly d riv e th ose w h o e n jo y th e e x e m p tio n in to o th e r v en tu res. O ur 85 p e r ce n t b r a c k e t ta x p a y e rs are n o t in te re ste d in a ta x a b le m u n ic ip a l b o n d e v e n th o u g h 2Vz p e r ce n t y ie ld (o r .375 p er c e n t n et to h im ) m ig h t b e a v a il able. U n til th e p s y c h o lo g y o f o u r so cia l an d e c o n o m ic sy s te m tra in s th e ir g u n s a w a y fr o m o u r soft-h ea rted U n cle I d o u b t if y o u ca n e x p e c t a n y d iffe re n t a n sw er. I f m y p re m ise b e rea son a b le y o u are b e tte r o ff le a v in g th e b ig in co m e s T h e c it y ta x p a y e r has n o c o n c e p tio n o f w h e th e r h e v o te s $8 m illio n o r $10 m illio n in b o n d s b u t he d oes th in k in term s o f th e tax. I f th e b o n d s b ea r 114 p er ce n t h e w ill tolera te a d ebt o f $10 m illio n , b u t if th e b o n d s b ea r 2Vi p e r cen t, b e ca u se o f b e in g ta x a b le in c o m e to th e h o ld e r, h e w ill n o t a c ce p t the ta x u p o n h im s e lf o f m o r e th an $8,642,294 d eb t w h ic h is the e x a ct eq u iv a le n t in ta x le v y fo r serial 1-25-year b on d s. T h e re su lt o f th is eq u a tio n is th a t th e m u n ic ip a lity sp en d s m o r e m o n e y . T h e ta x b u rd e n on th e c itiz e n is th e m ea su re o f h is d eb t to le ra n ce . A p p lie d to in v e s to r s an d b a n k s th e fu tu re fo r ta x -e x e m p t se cu ritie s seem s a ssu red and if th e th rea t o f ta x in g o u r m u n ic ip a l b o n d s a ffo rd s a d e p re sse d m a rk et, it sh o u ld be re g a rd e d as a b u y in g o p p o r tu n ity fo r th o se w h o ca n u se th e e x e m p tio n . I f th is be an a cce p te d p r in cip le , th en th e o n ly r e m a in in g d a n g er to the m a rk e t o f ta x -ex em p t b o n d v a lu e s w o u ld b e th e lo w e r in g o f th e in co m e tax. Y o u and I m ig h t fa v o r it b u t w ill w e h a v e o u r w a y ? I ’m a fra id n ot.— T h e E n d . Net Income T h e 39th an n u a l r e p o r t o f C o m m e r cia l C redit C om p a n y , B a ltim ore, s h o w in g its co n s o lid a te d o p e ra tio n s fo r 1950 an d th e o p e ra tio n s o f its fin a n ce c o m p an ies, in su ra n ce co m p a n ie s an d m a n u fa c tu r in g co m p a n ie s, w a s relea sed in a r e p o r t sig n e d b y A . E. D u n ca n , fo u n d e r and ch a irm a n o f th e b oard , an d E . C. W a re h e im , p resid en t, p o in t in g ou t th at c o n so lid a te d o p e ra tio n s an d n et in c o m e fo r 1950 w e r e la rg er Northwestern Banker, March, 1951 34 Investments th an fo r a n y p re v io u s y e a r in th e h is t o r y o f th e c o m p a n y . C o n so lid a te d n et in c o m e fr o m c u r re n t o p e ra tio n s tota led $19,853,511, co m p a r e d w ith $17,770,717 fo r 1949 and $16,663,448 fo r 1948. N et in c o m e p er sh a re o n 2,278,973 sh a res o f co m m o n s to c k o u tsta n d in g at th e e n d o f 1950 tota led $8.64 p er sh are, c o m p a r e d w ith $9.16 on 1,841,749% sh a res in 1949. A ll losses fr o m o p e ra tio n s an d a m p le r e s e r v e s fo r p o s s ib le loss es o n d o u b t fu l an d c u r r e n t item s h a v e b e e n c h a rg e d to c u r r e n t op e ra tio n s. T h e in cre a se d U n ited S tates in c o m e an d e x ce s s p ro fit ta x e s a p p lica b le to ea rn in g s fo r 1950 co m p a r e d to 1949 d e cre a se d th e co n s o lid a te d n et in c o m e fo r 1950, u n d e r th e fo r m u la u sed b y th e c o m p a n y , b y $3,081,972. U N IT E D ST A T E S G O V E R N M E N T S T A T E , M U N IC IPAL AND C O R P O R A T E SECURITIES F .H .A . M O R TG A G ES M U T U A L FUNDS B l a ir ,R o l l in s 6- Co. INCORPORATED 1 3 5 South La Salle Street, Chicago 3 N EW YO R K • BOSTON • PH ILADELPH IA • H IG H E R IN T E R E S T R A T E SAN FRANCISCO Offices in other principal cities throughout the country M U N IC IP A L B O N D S Specializing in Iowa County, City, School and Municipal Utility Revenue Issues C a r l e t o TELETYPE NO.D.M.19-4 TELEPHONES -a -815© '<-©157 n D .B IN V E S T M E N T DES D e s M O IN E S e i i C o . S E C U R IT IE S B UILD IN G M o i N E S .I o m RAVENSCROFT & CO. Specializing in Municipal Bonds for Institutional Investment Iowa Municipals General Market Municipals Mutual Funds B u yin g M unicipals is a large part o f ou r business. S h ow us a ny securities which yo u wish to sell. MERCHANTS NATIONAL BANK BLD G., CEDAR RAPIDS, IO W A Telephone 2 -5 0 7 8 Northwestern Banker, March, 1951 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A n announcement was made early this month of an agree ment between the Federal Re serve and the Treasury over the current dispute on interest rates of long-term government bonds. The Treasury has promised the issuance of a nonmarketable botid of unknown maturity, and the Federal R e serve Board feels sure that the new issue will help to remove one inflationary aspect, that of institutional selling in the mar ket of such issues as the "6 7 - 72 series. The Treasury said that the non-marketable b o n d , when announced, would be available for exchange for a marketable note, par for par, at the option of the owner, anytime after the bond had been issued. The terms o f the marketable note are yet to be announced. In effect, it is an attempt to freeze approximately 19 billion dollars of the long term national debt by offering higher interest rates to anyone who will keep these government securities off the market, where they could be used to swell loans. Bankers have been taking more notice of the sharp jump in 91 day rates than in the offer of long-term government securi ties at higher interest rates. That is because much of the long-term program is still left clouded by the treasury. The essential details are being with held until March 19. And bank ers say they cant tell until they know these terms whether they will want to invest in these 2 J ,A°/o non-marketable bonds or not. 35 T rea su ry andFederal Iteseree t'ontinue to Tay and Haat The Outcome of the Tussle Is a Matter of Great Importance to Banks and General Public By RAYMOND TRIGGER Investment Analyst New York City C O M M E R C IA L b a n k s, lik e o th e r b u sin esses, are c o n fr o n te d w ith p r o g r e s s iv e ly h ig h e r o p e r a tin g co s ts a n d taxes. A lth o u g h m o n e y ra tes are u p m o d e r a te ly fr o m th e e x tre m e ly lo w le v e ls o f r e c e n t y ea rs, n e v e rth e le s s som e fu r th e r in cre a se is essen tia l if b a n k s are to o b ta in a fa ir an d r e a so n a b le re tu rn o n th e in v e ste d ca p ita l w h ic h b a n k s h a re h o ld e rs h a v e at r is k .” T h e fo r e g o in g is fr o m th e a n n u a l r e p o r t to s to c k h o ld e r s o f T h e C hase N a tion a l B an k , o n e o f th e c o u n t r y ’s la rg est fin a n cia l in stitu tio n s, bu t it a p p lies w ith e q u a l fo r c e to e v e r y o th e r c o m m e r c ia l b a n k in th e U n ited States. In te re st ra tes in e v ita b ly fa ll in to a lon g -e sta b lish e d p a ttern w h ic h reflects th e len g th o f th e b o r r o w in g te rm and th e cr e d it r isk in v o lv e d . If a com m e rcia l b a n k e r ca n g et 3 p e r ce n t on a fiv e-y ea r “ r is k le s s ” in v e s tm e n t in c o m p r o m is e m a y be a rra n g ed b e tw e e n g o v e r n m e n t b on d s, h e th in k s tw ice th e o p p o s in g a u th o ritie s in W a s h in g b e fo r e b u y in g m e d iu m gra d e, u n s e ton , th e w h o le m a tter m ig h t co m e to c u r e d d e b e n tu re s, e v e n th o u g h th e a h ea d th is y e a r an d w ill e v e n tu a lly y ie ld m a y b e 4 p e r cen t. On th e in a n y case. P u b lic o p in io n , if p r o p o th e r h and, d e v ile d as h e is b y risin g e r ly in fo r m e d and a rou sed , c o u ld be o p e r a tin g co sts an d ta xes, h e w ill r e th e c o n tr o llin g fa c t o r in th e u ltim a te g a rd a IV2 p e r ce n t r e tu r n fr o m on ed e cisio n . It is an o b v io u s o p p o r tu n ity y e a r T r e a s u r y s w ith a ra th e r ja u n fo r th e b u sin ess an d fin a n cia l lea d ers d ic e d eye. T h u s it is o f v ita l im p o r in co m m u n itie s th r o u g h o u t th e c o u n ta n ce to th e b a n k e r th a t th e h a u lin g t r y to in fo r m and a ro u se th eir n e ig h an d tu g g in g g o in g o n b e tw e e n th e bors. T r e a s u r y an d th e R e s e r v e o n th e q u e s Arguments Not Impressive tion o f in te re st rates o n g o v e r n m e n ts b e r e s o lv e d on a se n sib le basis. In e n d e a v o r in g to in fo r m and a rou se, It m ig h t b e a rg u ed th a t th e w r a n g le lea d ers in fin a n cia l an d b u sin ess c ir is o f little in te re st to th e A m e r ic a n cles w ill be w e ll a d v ise d n ot to ig p e o p le as a w h o le , b e ca u se th e y h a v e n o r e th e a rg u m en ts a d v a n ce d in fa v o r a liv e lie r c o n c e r n w ith fo r e ig n p o li o f h o ld in g in te re s t ra tes d o w n . T h es e cies, d e fe n se p o lic ie s an d e c o n o m ic are, ro u g h ly , th a t b o o m s in th e past c o n tr o ls a g a in st a b a c k d r o p o f th e n e h a v e n o t b e e n p r e v e n te d b y h ig h in c e s s ity to m o b iliz e o n c e again. T h en , te re st rates; th a t sa v in g s ro s e to r e c too, in te re s t ra tes an d s q u a b b lin g o r d h ig h le v e ls in W o r ld W a r II and b e tw e e n th e T r e a s u r y a n d th e R e th a t m o st o f th e in crea se, b y on e ro u te s e rv e p r o b a b ly s e e m la r g e ly a ca d em ic o r a n oth er, w e n t in to g o v e r n m e n t and tc h n ic a l to th e m a n in th e street b o n d s d esp ite a n ig g a r d ly retu rn , and ju s t n o w . B u t th e o u tc o m e o f th e tu s th a t it is in th e ta x p a y e r ’s in te re st sle b e tw e e n th e a d v o ca te s o f h ig h e r to h o ld d o w n th e co s t o f s e r v ic in g th e in te re s t ra tes and c o n tin u e d ch ea p e n o r m o u s fe d e ra l debt. m o n e y is a m a tter o f g rea t im p o rta n ce T h e s e a rg u m e n ts are n o t im p r e s to c o m m e r c ia l b a n k e rs and to th e sive. B o o m s h a v e o c c u r r e d in th e g e n e ra l p u b lic, h o w e v e r little th e la t fa ce o f h ig h in te re s t rates, to b e sure, ter seem to b e a w a re o f it. F in a lly , b u t th e g e n e ra l b a c k g r o u n d w a s e n a lth o u g h so m e s o r t o f a te m p o r a r y tir e ly d ifferen t. T here w ere no re https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis s trictio n s o n th e w a y in w h ic h b o r r o w e d m o n e y co u ld be u sed and th ere w e r e a p p ea lin g p o s s ib ilitie s o f e x tr e m e ly h ig h profits, s u b je c t to far lo w e r ta x es th a n p r e v a il to d a y on s p e cu la tiv e gain s. In W o r ld W a r II, th ere w a s little else to d o w ith e x cess in c o m e th a n to p u t it in in su ra n ce, sa v in g s b a n k s o r sa v in g s b on d s. T h e d e s ire d c o n s u m e r g o o d s ju s t w e r e n ’t th e re to be b o u g h t. F in a lly , th e c o n te n tio n th at lo w e r over-all co sts o f s e r v ic in g fe d e ra l d eb t is a b o o n to ta x p a y e r s ’ w a n ts to be e x a m in e d m o st ca r e fu lly . T h e lo w e r co st o f s e r v ic in g th e d e b t is p u rch a se d at th e p r ic e o f a b a n d o n in g on e o f s e v e ra l to o ls w ith w h ic h in fla tion m a y be fo u g h t. In ro u n d figu res, the c o s t o f s e r v ic in g a d eb t o f $250 b illio n at 2 p er ce n t is $5 b illio n a y e a r an d at 3 p e r cen t, $7.5 b illio n a y ea r. T h e d ifferen ce, $2.5 b illio n , is im p re ssiv e , c o n s id e re d a lon e, b u t w h e n sta ck ed u p a g a in st a $70-odd b illio n b u d g et, it is d w a rfe d . Or, again , w h e n m ea su red a ga in st a 10 p e r ce n t s w in g in th e p u r c h a s in g p o w e r o f th e d olla r, a fe w b illio n s a y e a r is as n o th in g . T h u s, if n a tion a l p r o d u c tio n is at th e ra te o f $300 b il lio n a y ea r, a 10 p er ce n t rise in costs, o r d r o p in p u r c h a s in g p o w e r , is $30 b illion . Keep Power Over Credit On th e o th e r hand, th ere are p e r su a siv e a rg u m en ts in fa v o r o f re s to r in g its p o w e r o v e r cr e d it to th e R e s e r v e b y p e rm ittin g th e b o a rd to let in te re s t rates reflect th e rea lities. F o r on e th in g, h o w e v e r d ifficu lt it m a y be to im m e d ia te ly p e r c e iv e it, h ig h e r in terest ra tes d o d eter b o r r o w e r s , at lea st at all tim es e x c e p t w h e n th e w h o le p o p u la tio n is in d u lg in g in an e c o n o m ic b in g e. B o r r o w in g b y the g o v e r n m e n t in th e p re se n t e m e r g e n c y is in e v ita b le , o f co u rse , b u t in d iv id u a ls an d b u sin e sse s ca n b e d is co u ra g e d b y h ig h e r costs. In p o in t o f fa ct, h e a v ie r g o v e r n m e n t b o r r o w in g is an im p o r tan t re a so n w h y b o r r o w in g b y oth ers s h o u ld b e h e ld to th e m in im u m as on e o f s e v e ra l w a y s to c o m b a t in flation . H ig h e r in te re st ra tes on g o v e r n m e n ts are a p o w e r fu l in c e n tiv e to Northwestern Banker, March, 1951 36 Investments th e ir re te n tio n b y c o m m e r c ia l ban k s. In tu rn , th is m ean s th at th e y w ill be less rea d y to sell th em to th e R e s e rv e in o r d e r to m a k e c o m m e r c ia l loan s w ith th e p ro ce e d s. T h e sam e a p p lies to in d iv id u a l and in stitu tio n a l in v e s t ors. P r o s p e c tiv e d eficit fin a n cin g b y th e fe d e ra l g o v e r n m e n t is o n ly th e p r e lu de to m o r e b o r r o w in g b y it. If in terest rates are s o m e w h a t m o r e g e n erou s, th o u g h tle ss s p e n d in g w ill seem less re a son a b le and m o r e sa v in g sen sib le b y th e g re a t ra n k an d file o f th e c o u n t r y ’s w o r k e r s . T h u s, fe d e ra l fin a n cin g w ill b e fa cilita te d w h ils t idle sp e n d in g w ill b e d isco u ra g e d . A s su ch sp e n d in g d ries up, in fla tio n a ry sp irals w ill e n c o u n te r stiffer resista n ce. A lto g e th e r , th en , e v e r y th in g th at can be d o n e to a rou se th e p u b lic to tak e an a ctiv e in terest in th e p resen t c o n tr o v e r s y b e tw e e n th e T r e a s u r y and th e R e s e r v e is in th e b est in te re st o f c o m m e r c ia l b a n k s. N ot o n ly w ill m o d e ra te ly h ig h e r in te re st rates b r in g c o r r e s p o n d in g r e lie f fr o m r is in g o p e r a tin g co sts and ta x es im p o s e d on c o m m e rcia l b a n k s, b u t in ad d ition , e v e r y th in g th at can b e d o n e to halt, o r at least s lo w d o w n in fla tion is g ood . In th e n a tu re o f th in g s, th e T r e a s u r y and the R e s e r v e ca n n o t g o on fo r e v e r at log g erh ea d s. T h e T r e a s u r y T h e re is n o rea l p e ril in h o ld in g g o v e r n m e n ts , so fa r as can be seen at th is tim e, b u t m o s t b a n k s are in fo r p re tty r o u g h sle d d in g on taxes. T h e r e are fe w a v en u es o f esca p e. One, o f co u rse , is th e p u rch a se o f ta x -e x e m p t o b lig a tio n s o f states, th e ir p o litic a l su b d iv is io n s and a u th orities. P rices, a d m itted ly , are n ot a n y w h e r e n ea r th e lo w e r ra n g es o f r e ce n t d eca d es, b u t n e v e r b e fo r e has ta x sh elter b e e n so v a lu a b le. T h e re h a v e b e e n h in ts fr o m h ig h p la ces th a t th e e x e m p t p o s itio n o f th e iss u ers sh o u ld b e lo o k e d in to, b u t se v e ra l e a rlier e ffo rts to in v a d e th e c o n s titu tio n a l p o s itio n o f issu ers h a v e fa iled m ise ra b ly . T h e re is n o d o u b t th at th e o rg a n iz a tio n sp ea k in g fo r th e states and th e ir p o litic a l su b d iv is io n s w ill be re a ctiv a te d and th eir case seem im p re g n a b le . A. G. Becker & Co. INCORPORATED Established 1893 U N D E R W R IT E R S AND D IS T R IR U T O R S Commercial Paper— Equipment Trust Certificates Municipal and Corporate Obligations C o rp o ra te Affiliate o f A. G. Becker & Co. A PARTNERSHIP M em bers NEW YORK STOCK EXCHANGE NEW YORK CURB EXCHANGE MIDWEST STOCK EXCHANGE O n ly on e n o te o f c a u tio n seem s in ord er. It sh o u ld be, o f c o u rse , th at fu tu re em issio n s o f p r e s e n t e x e m p t b o n d s w ill b e s u b je c t to a fe d e ra l tax o n in co m e . T h a t w o u ld be b a d en ou g h , b u t th e a rg u m e n t fo r p re s e n t p u r ch a ses o f m u n icip a ls is, in effect, th at th e ir p re se n t w o r t h w o u ld b e e n h a n ce d b y ra p id ly g r o w in g sca rcitie s w e re fu tu re issu es to b e ta x ed . T h e a rg u m e n t is sou n d, as fa r as it g oes, b u t it ig n o r e s th e th rea t to p re s e n t h o ld e rs im p licit in a n y b re a ch o f th e ta x sh elter. 1 2 0 South LaSalle Street Chicago 3 , Illinois NEW YORK, SAN FRANCISCO and Other Cities r Dealing for a “Plus In volume transactions in Government Bonds, we fre quently deal for 1/64 of a point. This is less than 2 cents per $100.00. Only a few of the institutions which buy and sell Government securities realize that this nominal profit probably represents the smallest margin for any com modity traded in. Bond Department -C O M M E R C E M E R C A N T IL E T ru st C om pany MISSOURI Bank, and ST. LOUIS 1 V* \U |mT.... .. ______ CifsT-s -J Northwestern Banker, March, 7951 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis has p o w e r fu l s u p p o r t fo r its p o s itio n fr o m th e e x e c u tiv e b r a n c h o f th e g o v ern m en t, to be su re, b u t its p o s itio n is w e a k w h e n a ssa y ed in th e lig h t o f c o ld fa cts and sim p le lo g ic. T h u s, a fa ce -sa v in g c o m p r o m is e s h o u ld n o t su rp rise. M ea n tim e, th e re is n o re a son to a n ticip a te a n y a b ru p t ch a n g e in the g e n e ra l le v e l o f p rice s, a lth o u g h th e p ru d e n t in v e s to r w ill a c c e p t th e fa c t th at he has b e e n alerted. F or tu n a tely , it n o w seem s lik e ly th at e v e n th e “ w o r s t ” w ill n o t be v e r y bad. T h a t is, a d ip in th e p r ic e o f th e lo n g 2V2s lik e ly w ill n ot b e se v e re , e v e n if u n re s tra in e d and, if th is g u ess p r o v e s w r o n g , s u p p o r t w ill b e sto re d at o n ly a m o d e st d is c o u n t fr o m p a rity. F in a n cia l officers o f cities and states h a v e a c o m p e llin g re a s o n to p r o te c t th e m se lv e s a g a in st th e fe d e ra l ta x c o l le cto r. T h e y can b o r r o w at a lo w e r cost. S h ou ld th ey , h o w e v e r , b e b ea ten in a n e w co n te s t to ta x m u n icip a ls, th e y w o u ld h a v e little d ir e c t in c e n tiv e to figh t off a raid o n in c o m e s d e r iv e d fr o m p r e s e n tly ou tsta n d in g ex em p ts. P r o b a b ly th e th rea t is an e m p ty on e, b u t it is clea r th at p re se n t h o ld e rs o f e x e m p ts sh o u ld jo in th e e ffo r t o f issu ers to p re v e n t d e s tr u c tio n o f th e e x e m p tio n n o w e n jo y e d b y th em in o r d er th at th e s e c o n d a r y b r e a c h m a y n e v e r b e ta ck le d b e ca u se th e first lin e o f d e fe n se h as b e e n h eld .— T h e E n d . 37 H ou •Pension Funds H oost Trust B epu rtm en t Business The Bulk of Pension Fund Investments Should Be in Bonds and Equipment Trust Certificates Written Especially for The NORTHWESTERN BANKER By R. A. NELSEN Halsey, Stuart & Company, Inc. Omaha B A N K S in sm a ller as w e ll as la rg er citie s are fin d in g in p e n s io n p r o g ra m s a g r o w in g s o u rce o f tru st b u sin ess. W ith h ig h e r c o r p o r a te in c o m e ta x es e x p e c te d to e n co u r a g e e v e n m o re th e a d o p tio n o f p e n sio n p lan s, th e b a n k e r ’s o p p o r tu n ity fo r s e r v ic e in th is field is o n th e in crease. T o d a y m o r e th a n 14,000 c o r p o r a te p e n s io n p la n s h a v e b e e n a p p r o v e d fo r ta x e x e m p tio n b y th e B u rea u o f I n tern a l R e v e n u e , an d an e stim a ted s e v en to eig h t m illio n e m p lo y e s o f A m e r i ca n b u sin ess an d in d u s tr y are p r o v id e d w ith r e tir e m e n t b en efits u n d er th ese p ro g ra m s. In each o f th e last tw o y e a r s a lon e m o re th an 1,000 n e w p la n s h a v e q u a lified u n d e r S e ctio n 165 (a ) o f th e In te rn a l R e v e n u e C ode. m u n icip a l ob lig a tio n s, and p erh a p s se lected m u n icip a ls issu ed in o th er states. Government Bonds Pension Systems State an d m u n ic ip a l p e n s io n s y s tem s h a v e k e p t p a ce w ith th e c o r p o rate p ro g ra m s. Old age re tire m e n t p la n s a re n o t n e w in th e state and m u n ic ip a l field, b u t w h e r e som e y e a rs a g o th e y w e r e co n fin e d m a in ly to c o v e ra g e o f su ch p u b lic e m p lo y e s as s c h o o l tea ch ers, firem en an d p o lic e m en , th e m o v e m e n t has sp rea d its w in g s re m a r k a b ly and to d a y in som e states c o v e r s v ir tu a lly all e m p lo y e s in all ca p a cities. C o n cu rre n t w ith th e g r o w t h o f p e n s io n p la n n in g has b een th e g r o w th o f tre m e n d o u s fu n d s to m a k e th e p lan s w o r k . C o n trib u tio n s fo r all c o r p o r a te p e n s io n fu n d s n o w ru n clo s e to the siza b le figu re o f $2 b illio n a n n u a lly . T h e r e is e v e n som e a p p re h e n s io n that h u g e v o lu m e s o f p e n s io n m o n e y m a y so m e d a y p la ce a stra in o n th e c a p a c ity o f th e ca p ita l m a rk e ts to p r o v id e su ita b le in v e stm e n t. W h ile th is has n o t y e t c o m e tru e, th e in v e s tm e n t r e q u ire m e n ts o f p e n s io n fu n d s d efin itely h a v e a ssu m ed im p o rta n ce in th eir in flu en ce o n th e m a rk e t tod a y . Financing Pension Plans T h e fin a n cin g o f co r p o r a te p e n sio n p la n s in m o s t ca ses is b y m ea n s o f (1 ) in su ra n ce c o n tr a c ts th at p r o v id e a n n u ities fo r re tire d w o r k e r s o r (2) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis R. A. N E L SE N “ An estimated seven to eight million employes are now covered” tru st fu n d s e ith er a d m in iste re d b y a sep a ra te tru stee or self-a d m in istered . In s u r a n c e co n tra cts, o b v io u s ly , resu lt la rg e ly in in v e s tm e n t in b o n d s and sim ila r cr e d ito r o b lig a tio n s. U n d er t r u s t e e d o r self-a d m in istered p r o g ra m s, h o w e v e r , in v e stm e n t r e q u ir e m en ts are m o re flex ib le; th e y are fr e q u e n tly tied in w ith state law s g o v e r n in g in su ra n ce fu n d or tru st fu n d in v e stm e n t lim ita tion s. T h e lim ita tion s on re s tricte d tru st fu n d s in som e states h a v e b een rela x ed to a llo w in v e stm e n t in eq u ities, a l th ou g h e v en in th ese states the a d v a n tages o f the c r e d ito r r e la tio n s h ip are r e c o g n iz e d b y rig id r e g u la tio n s p la ced on s to c k in v e stm e n t. It is sig n ifica n t th at w h e r e e q u ity in v e s tm e n t u p to 35 p e r cen t o f assets has b een a u th o r ized, on th e a v e ra g e o n ly a b ou t h a lf o f th at p e rce n ta g e has b e e n u tilized . T h e in v e s tm e n t o f state an d m u n ic i p al p e n s io n fu n d s as a ru le is lim ited b y th e la w th at crea ted th e p ro g ra m . F r e q u e n tly th ese la w s p r o v id e fo r in v e s tm e n t o n ly in g o v e rn m e n ts , lo ca l T h e lin e o f least re sis ta n ce in the in v e stm e n t o f state an d m u n icip a l fu n d s is in th e p u rch a se o f g o v e r n m en t b on d s, b u t a tren d is a p p a ren t in th e r e c o g n itio n b y sev e ra l states o f the a d v a n ta g es to be g a in ed th rou g h in v e s tm e n t in h ig h g ra d e co r p o r a te b o n d s as w e ll. T h e ta x -ex em p t fea tu re o f m u n icip a ls is o f n o v a lu e to p e n sio n fu n d s w h o s e in c o m e a lrea d y is taxe x e m p t b y law . A t th e sam e tim e, the y ie ld s o f a b ou t 2.65 p e r ce n t o b tain a b le on tim e-tested eq u ip m e n t tru st certifica tes and a b o u t 2.75 p er c e n t o n h ig h g ra d e c o r p o r a te s c o m p are w ith ab ou t 1.75 p e r ce n t fo r m u n icip a ls and 2 V2 p er ce n t fo r g o v e r n m en ts. F r o m th e p e n s io n fu n d sta n d p o in t an in crea se in a ssu red p e r c e n t age re tu rn a u to m a tica lly a llo w s a su b stan tial re d u c tio n in co n tr ib u tio n to p rin cip a l. T h e tren d to r e c o g n itio n o f h ig h g ra d e c o r p o r a te d eb t o b lig a tio n s fo r m u n icip a l p e n s io n fu n d in v e stm e n t is e x p e cte d to c o n tin u e a m o n g th e states. O f the b illio n s o f d olla rs c o n trib u te d to co r p o r a te p e n sio n fu n d s, it is e sti m a ted th at m o re th an h a lf is fo r tru ste e d o r self-a d m in istered p la n s and so m e th in g less th an h a lf fo r g ro u p a n n u ity o r in su ra n ce sy stem s. It is in th e tru steed fu n d s th at b a n k s find a fe rtile field in w h ic h to d e v e lo p th eir tru st b u sin ess, an d in th e self-a d m in istered p lan s a field in w h ic h to d e v e lo p a g e n cy serv ices. A b a sic re q u ire m e n t o f a p en sion fu n d is th at it p r o v id e d efin ite d olla r b en efits re g a rd le ss o f e c o n o m ic ch a n g e or flu ctu a tin g b u sin ess co n d itio n s. It re q u ire s a s e c u r ity th at p r o v id e s a ste a d y re tu rn d u r in g its life tim e and co m m a n d s a fix ed p r ic e at a d efin ite m a tu r ity date. I f th e sou n d n e ss o f th e p e n s io n o b lig a tio n is to b e p r e serv ed , th ere sh ou ld be n o u n d u e r e a ch in g fo r y ie ld w h e n su ch r e a ch in g Northwestern Banker, March, 1951 38 Investments MUNICIPAL Defense Spending, Controls and Higher Taxes o p e n s p o s s ib ilitie s o f d isa strou s r e d u c tio n or fa ilu re o f y ield . T h e s e p o s s i b ilitie s are r e c o g n iz e d in th e state la w s th at lim it tru st fu n d in v e stm e n ts. • SECURITIES Suitable for ★ BANKS ★ INDIVIDUALS ★ INSTITUTIONS ★ ESTATES Investing for income or capital appreciation becomes increasingly difficult. Our studies and findings should be helpful to you. to whom income tax exemption Ask for our suggestions Smith, Polian & Co. Becker & Cownie, Inc. 424 Omaha National Bank Bldg. Omaha 2, Nebraska JAckson 5065 8 23 -2 4 Insurance E xch a n ge B ld g. DES M O IN E S 9, I O W A Phone 3 -5189 .... _________ _________________________ _____________________ _ ------------------ ------------------------------------ -------------------------- — — M U N IC IP A L B O N D S STATE COUNTY CITY SCHOOL FREE FROM ALL FEDERAL INCOME TAXES THE WHITE-PHILLIPS CO., INC. A. H. Schriefer 823 40th Street Des Moines First National Bldg. First National Bank Bldg. Davenport, Iowa Chicago, Illinois SPECIALIZING (Jo w c l FIRM BIDS IN T ^ lu m o d p ja L FIRM OFFERS . (B o n d it . QUOTATIONS SPARKS & CO. & Loan Bldg. DES MOINES, IOWA Northwestern Banker, March, 1951 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M u ch has b e e n said a b ou t th e d e s ir a b ility o f e q u ity in v e s tm e n t fo r in crea sed in c r e m e n t to p e n s io n fu n d s, b u t th e a rg u m en t is b a sed la r g e ly u p o n th e p e r fo r m a n c e o f th e se cu ritie s m a rk ets sin ce th e e a r ly ’30s, an d es p e c ia lly u p o n an a ssu m p tio n th at th e in fla tio n a ry sp ira l w ill c o n tin u e in d efin itely . T h e s e are ra p id ly c h a n g in g tim es. In cre a se d co sts an d b u r d e n so m e ta x a tio n ca n sq u e e ze c o r p o rate e a rn in g s and a ffect c o r p o r a te d iv i d en d s and s to c k p rices. A n d th e in fla tion a ry sp ira l has re a ch e d su ch a h e ig h t th at co u n te r m ea su res m u st b e a d opted. T h e a d v a n ta g es o f th e c r e d ito r in v e s tm e n t r e la tio n s h ip esta b lish ed w ith b o n d s are b a sed u p o n p e r fo r m a n c e r e c o r d s su sta in ed in g o o d tim es and bad th r o u g h o u t th e n a tio n ’s fin a n cia l h isto ry . B on d s, o f co u rse , re p re s e n t a lien u p o n th e assets o f th e issu er. T h e y p r o v id e th e p e n s io n fu n d w ith a fix ed and k n o w n in c o m e an d a d efin ite p rice re tu rn on a fix ed m a tu r ity date. T h e ir q u a lity ra tin g s an d u n d e r w r itin g s p o n so rsh ip co n tr ib u te to ease o f s e le c tion . A n d th e b o n d m a rk e t offers the o p p o r tu n ity fo r b ro a d d iv e r s ific a tion , n o t o n ly as to m a tu ritie s and y ie ld s, b u t as to in d u stries, ty p e s o f issu es and g e o g r a p h ic a l lo c a tio n s o f th e issu ers. G e n e ra lly th ere is little q u a rre l w ith the p u rsu it o f a dded in co m e , b u t w h e r e p e n s io n fu n d s are in v o lv e d th e tr u s te e ’s b a sic o b lig a tio n is to p re s e r v e th e d olla rs c o n tr ib u te d and m a k e th em sa fe ly earn a re tu rn th at satisfies th e p la n ’s r e q u ire m e n ts. T h e re ca n b e n o q u e s tio n th at th e b u lk o f p e n s io n fu n d in v e stm e n ts sh o u ld b e in b o n d s and e q u ip m e n t tru st certifica tes, fo r th e ir c o n s e r v a tism , sa fety , fix ed y ie ld an d a ssu red p r ic e at m a tu rity .— T h e E n d . Elected Vice President "Your Correspondent for Municipal Bonds" 1203 Savings Equity Investment Telephone 3-5154 A lfr e d G. R u e h le has b e e n ele cte d v ic e p r e s id e n t o f B a n k e rs T ru s t C o m p a n y , it w a s a n n o u n ce d b y S. S loa n C olt, p resid en t. M r. R u e h le w ill be in ch a rg e o f th e B a n k e rs T ru s t C o m p a n y office at 203 M on ta g u e S treet, B r o o k ly n . M r. R u e h le c o m e s to B a n k e rs T ru st fr o m M a n u fa ctu rers T ru s t C om p a n y , w h e r e h e b e ca m e v ic e p re s id e n t fo l lo w in g th e m e r g e r o f th a t b a n k w ith B r o o k ly n T r u s t C om p a n y , w ith w h ic h he h ad b e e n a ssocia ted fo r 21 y ea rs. Investments In Kansas City Bank T o m C. C a n n on h as jo in e d th e c o r r e s p o n d e n t b a n k d iv is io n o f C o m m e r c e T r u s t C om p a n y , an d w ill tra v e l in th e states o f Iow a , Illin o is , M in n e sota, N o rth an d S ou th D ak ota, W y o m in g and N eb ra sk a . B o r n in S eattle, W a s h in g to n , M r. T h e selle rs a n d th e b u y e r w e r e b r o u g h t to g e th e r th r o u g h th e B a n k ers S e r v ic e C o m p a n y (D es M oin es, Iow a , a n d C o lo ra d o S p rin g s, C o lo r a d o ), w ith E. G. U n tied t, v ic e p resid en t, h a n d lin g th e n eg o tia tio n s. Advisory Council E d w a r d E. B r o w n , ch a irm a n o f T h e F ir s t N a tion a l B a n k o f C h ica g o, w a s re-elected p r e s id e n t o f th e F e d e ra l A d v is o r y C o u n cil o f th e F e d e ra l R e s e r v e S y stem fo r 1951 at a m e e tin g h eld r e c e n tly in W a s h in g to n . R o b e r t V . F le m in g w a s e lected v ic e 39 p resid en t. M r. F le m in g is p re s id e n t an d ch a irm a n o f th e b o a r d o f T h e R ig g s N a tion a l B a n k , W a s h in g to n , D. C. D ir e c to r s e lected a re: N. B a x te r J a ck so n , ch a irm a n o f th e b oa rd , C h em ica l B a n k & T ru s t C om p a n y , N e w Y o r k C ity; F r e d e r ic A. P otts, p resid en t, T h e P h ila d e lp h ia N a tion a l B an k , M in n e a p olis, an d S id n e y B. C on g d on , p resid en t, T h e N a tion a l C ity B a n k o f C lev ela n d . T h e a b o v e five co n stitu te th e e x e c u tiv e c o m m ite e o f th e C ou n cil. H e r b e r t V . P r o c h n o w , v ic e p resid en t o f T h e F ir s t N a tion a l B a n k o f C h ica go, w a s re-elected secreta ry . MUTUAL FUND SHARES For Your Bank Cus t omer s T. c. CANNON On Commerce Trust staff C a n n on r e c e iv e d h is ed u ca tion in T u lsa, O k la h om a . H e w a s e m p lo y e d at th e F a rm e rs State B a n k , M orton , M in n esota , as assista n t ca sh ie r and later at th e F e d e r a l R e s e r v e B a n k o f M in n ea p olis, w h e r e h e re m a in e d fo r s e v e ra l yea rs. H e b e c a m e a ssocia ted w ith th e St. P a u l T e rm in a l W a r e h o u s e C o m p a n y 14 y e a rs ago an d r e m a in e d in th e T w in C ities fo r a fe w y ea rs, th en w a s a p p o in te d d is trict m a n a g e r fo r th e states o f S ou th D ak ota, N eb ra sk a , Io w a and n o r th e r n M issou ri, w ith h e a d q u a rters in D es M oin es, Iow a . M r. C a n n on is c o m in g d ir e c t ly to C o m m e r c e T ru s t fr o m th e St. P au l T e r m in a l W a r e h o u s e C om p a n y . H e is m a rried an d h as on e son a n d tw o d a u g h ters. Buys Kansas Bank C o n tr o llin g s to c k o f th e F irs t N a tio n a l B a n k o f D elp h os, K an sas, has b e e n s o ld b y B r u c e K. B r o w n a n d R a y E v e r le y to L e s lie T. M cC u lly o f C allao, M issou ri. M r. M cC u lly w a s e le cte d e x e c u tiv e v ic e p re s id e n t an d ca sh ier, s u cce e d in g G e o rg e W o o d s , w h o re s ig n e d N o v e m b er 1, 1950, b e ca u se o f p o o r h ea lth and a d v a n ce d age. M r. E v e r le y w ill c o n tin u e as p r e s id e n t (in a c t iv e ) an d a m e m b e r o f th e b o a rd o f d ire cto rs. M e lv in D ean a n d E d n a B o u r n e w ill co n tin u e as a ssista n t ca sh iers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis When your customers inquire about stocks and bonds, we suggest that you recommend their investigation of mutual fund shares, so that they may obtain adequate diversifica tion. We will gladly furnish prospectuses on all Mutual Funds whose management we can recommend, and which may be sold in the State of Iowa. Different funds are suitable for different investment ob jectives. We have statistical information on all mutual funds. Write or telephone at our expense. Your inquiry will be referred only to one of tht members of our firm who has been in the investment business twenty years or more. . . . . . . . . . Graefe & Company INVESTMENT 415 Equitable Building, Des Moines, Iowa BANKERS • Telephone 4-7297 Since 1922 MUNICIPAL BONDS Specializing in Revenue Securities BALLARD-HASSETT COMPANY INVESTMENT SECURITIES 406 Central National Bank Building Des Moines Northwestern Banker, March, 1951 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis You’re losing dollars every day if your bookkeepers are duplicating each o th er’s efforts— if they’re posting to statement and ledger both. Such duplication is not only expensive . . . but also completely unnecessary— ask any one of the thousands of banks who have changed to the simple Recordak Single Posting System. There’s only one record to p ost...there’s only one posting a day # With the Recordak Single Posting Sys tem, your bookkeepers handle all items in a single run . . . posting only to a statement, which serves as your ledger during the month. T hen it is microfilmed (for the bank’s continuous record) . . . and sent out with the customer’s a checks, which were photographed when paid. Your Recordak microfilm copies are a photographically accurate and com plete record of all checks and state\ ments handled by your bank. A record that can’t be tampered with or altered without detection . . . that can be filed, or vault-stored if you wish, in less than 2% of the space bulky paper originals require. All of which protects you against loss, carelessness and fraud — as never before. And promotes de positor good will, besides. Now . . . see how this simplified op eration cuts your bookkeeping costs: 1 Your bookkeepers are able to handle many more accounts . . . with less fatigue, with greater accuracy. 2 Your bookkeeping machine requirements are greatly reduced — as much as 40%. Which means, too, that you’ll be able to reclaim valuable floor space. 3 Your stationery costs are cut in half —no more ledger forms to order. In addition, you get unparalleled pro tection ... save up to 99% in filing space. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Get full facts on Recordak Single Posting— the standard bookkeeping system in thousands of banks; also details on Recordak’s line of microfilmers— now offered on an attractive purchase or rental basis. Write today for a free copy of " I n B a n k A f t e r B a n k A f t e r B a n k . ” Rec ordak Corporation (Subsid iary o f Eastman Kodak Com- , pany) , 444 Madison Avenue, I New York 22, N.Y. * ' Recordak” is a trade-mark (Subsidiary of Eastman Kodak Company) originator of modern microfilming— and its application to banking systems 42 Investments New Board Member T h e b o a rd o f d ir e c to r s o f C o m m e rce T ru s t C om p a n y , K a n sa s C ity, h a v e ele cte d O scar D. N elson as a m e m b e r o f th e b o a rd o f d ire cto rs. M r. N elson is p re s id e n t o f th e B u tler M a n u fa ctu rin g C om p a n y , m a n u fa c tu r ers o f oil and fa rm tan ks, m etal b u ild in g s fo r in d u stria l and fa rm use, and d r y cle a n e r s ’ eq u ip m en t, w ith fac- UNDERSTANDING MUTUAL FUNDS Perhaps you have frequently been asked, "W hat about Mutual Fund Shares?" — "Do they have a ready market?" — etc. If so, send for our free booklet, "UN DERSTANDING THE MUTUAL FUNDS." It will answer in plain and simple language these questions and many more. Write, telephone for your copy today. There is no charge or obligation. We have b e e n u n derw riters a n d d istribu tors of M utual Fu n d S h a re s lo r 20 y e a r s . T. C. HENDERSON 0 CO. Established 1930 tories in K a n sa s C ity, M issou ri; G ales b u rg , Illin o is ; R ic h m o n d , C a liforn ia ; B irm in g h a m , A la b a m a , an d M in n e a p olis, M in n esota . New Model Announced A “ w in d o w a c c o u n ta n t,” n e w m od el o f th e r e c e n tly re le a se d B u rro u g h s S en sim a tic A c c o u n tin g M ach in e, has b e e n a n n o u n c e d b y th e B u rro u g h s A d d in g M a ch in e C om p a n y . D e s ig n e d s p e c ia lly to h a n d le w in d o w a c c o u n tin g tra n sa ction s, th e n e w m a ch in e e m b o d ie s all th e a d v a n ta g es o f th e r e v o lu tio n a r y “ S e n sim a tic” c o n tr o l p rin cip le . A m o n g th e n e w fe a tu re s o f th e m a ch in e is a “ te lle r lo c k ” w h ic h p e rm its in d iv id u a l o p e r a to r c o n tr o l an d r e s p o n s ib ility fo r all tra n sa ctio n s h a n d led o n th e m a ch in e. In a d d ition , a, lo c k e d c o n tr o l k e y c o v e r p ro v id e s p r o te c tio n a g a in st u n a u th o riz e d a d ju s t m en ts o r ch a n g e s in th e tota ls a c c u m u la ted in th e m a ch in e. K eyboard ch a n g es h a v e b e e n m ad e to in su re fu r th er p r o te c tio n , an d n e w ly s ty le d p la s tic g u id es m a k e th e in s e rtio n and r e m o v a l o f p a s s b o o k s easier. A n e w h ig h sta n d has b e e n d e sig n e d fo r th e m a ch in e, o ffe r in g g re a te r c o n v e n ie n c e at w in d o w s w h e r e o p e ra tio n is fr o m a sta n d in g p o sitio n . T h e ma- THOMAS L ( RAMIE & COMPANY Investment Securities 9 0 1 M e r c h a n ts B a n k B ld g . CEDAR R A P ID S , IO W A P hone 8127 ★ ★ ★ SECURITIES OF IO W A CORPORATIONS BO U G H T Empire Building, Des Moines, Iowa Phone 4-4289 SOLD Members Midwest Stock Exchange QUOTED Wire System— Reynolds & Co. P r o m p t R e p l y to I n q u ir ie s WACHOB-BENDER CORPORATION “ W IN D O W A C C O U N T A N T ” The new model of the recently re leased Sensimatic Accounting M achine, designed b y Burroughs A dding M a chine Company. c h in e m a y a lso b e u sed o n th e co u n te r, or fitted c o m p a c tly in to a w e ll cu t in to th e co u n te r. A re g u la r stan d o r p o s t in g d esk m a y a lso be u sed w h e r e d e sired. Municipal and Corporation Bonds O M A H A , N EB R . LIN CO LN , N EBR . Underwriters — Distributors — Dealers Municipal Bonds Corporation Bonds Preferred Stock Common Stocks Investment Trusts M e m b er The M idwest Stock Exchange Kalman & Company, Inc. M cKnight Building Minneapolis Atlantic 5313 Northwestern Banker. March, 1951 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Endicott Building St. Paul Garfield 3 3 05 Northern Trust N et ea rn in g s o f T h e N o rth e rn T ru s t C om p a n y , C h ica g o, fo r th e y e a r 1950, a fter ex p en ses, ta x es an d a d d ition s to rese rv e s, w e r e $1,129,201.43, as c o m p a red w ith $1,085,429.32 in 1949. E a r n in gs p e r sh a re o n th e 30,000 sh ares o u tsta n d in g w e r e $37.64, a g a in st $36.18 in 1949. On th e a v era g e ca p ita l fu n d s n et e a rn in g s w e r e e q u a l to 5.16 p er cen t, as c o m p a r e d w ith 5.09 p er cen t in 1949. D iv id e n d s o f $540,000, o r $18 p er sh are, w e r e p aid d u rin g th e y e a r an d u n d iv id e d p rofits w e r e in cre a se d $589,201.43. A t th e y e a r en d ca p ita l fu n d s, w h ic h in clu d e ca p ita l stock , su rp lu s a n d u n d iv id e d p rofits, a m ou n ted to $22,292,950.27, as c o m p a r e d w ith $21,703,748.84 at the c lo s e o f 1949. Investments 43 Chase National in v e s t m e n t H a n k e r s E l e c t N et ea rn in g s a n d p rofits o f the C hase N a tion a l B a n k in 1950 tota led $20,939,000, o r $2.83 p e r share, a 7.6 p e r ce n t in cre a se o v e r th e $2.63 n et p e r sh are in 1949, a c c o r d in g to th e b a n k ’s an n u a l r e p o r t fo r 1950, w h ic h w a s m a iled to C h a se’s 84,000 sh a re h old ers. S h a reh old ers last D e ce m b e r 15th re c e iv e d an e x tra d iv id e n d o f $1,480,000, o r 20 cen ts p er sh are, an a m o u n t a p p r o x im a t e ly eq u a l to the in cre a se in 1950 ea rn in g s o v e r 1949. T o ta l d iv i d en d s p a id in 1950 a m o u n te d to $13,320,000,o r $1.80 p er share. SHORT TERM PAPER W e o ffe r , su b ject to prior sale and usual o p tio n , the six -m on th s notes o f the follo w in g m akers in d en o m i nations of $ 5 ,0 0 0 and m ultiples th e r e o f. Leon L . “ B ill” Gardner, vice president Kramer-Gardner Company, Burlington, was elected president of the Iow a Investm ent Bankers Association at the 1951 an nual m eeting of the organization held in Davenport. T. C. Henderson, who heads his own company in Des M oines, is first vice president; Glenn R avenscroft, proprietor of R avenscroft & Company, Cedar Rapids, was elected second vice president; and Sherman Fowler, Des M oines, assistant vice president in the bond department of the Iow a-D es M oines N ation al Bank, was re-elected secretary and treasurer. Pictured above, from le ft to right, are M r. Gardner, M r. Henderson, M r. Ravens Orlando Bankers Investment Company Hutchinson Commercial Securities Co., Inc. Baton Rouge Doty Discount Corporation Detroit Fidelity Acceptance Corporation croft, and M r. Fowler. Including guests from out of the State, 54 were registered at the Davenport m eet ing. Acceptance Corp. of Florida The annual meeting in 1952 w ill be held in Des M oines, and the annual Fall Outing this year w ill be combined w ith the Nebraska Investm ent Bankers A ssocia tion, and held in Omaha. Minneapolis Gale & Company St. Louis Liberty Loan Corporation Chicago Manufacturers & Jobbers Finance Corp. Shelby, N. C. Northwestern Acceptance Co. Milwaukee O’Dea Finance Company f!¿ / / ¿ a m i/ / j/ u r - 9 / d o m / u tn y Des Moines Pekin Finance Company Pekin, Illinois Members New York Stock Exchange Midwest Stock Exchange River Valley Finance Co. Davenport Southwestern Investment Co. Amarillo Underwriters a n d Distributors o f Thorp Finance Corporation Thorp, Wis. Corporate a n d M u n icip a l Universal Finance Corporation Omaha Securities COMMERCIAL PAPER COLLATERAL LOANS L. H. RYAN, I o w a R e p re se n ta tiv e 421 Fleming Building Des Moines, Iowa R .C . L O N G 8c CO. E S T A B L IS H E D 1924 Telephone Franklin 2-4151 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Teletype CG 546 120 South LaSalle Street Chicago 3, Illinois Phone: Randolph 6-0344 Northwestern Banker, March, 1951 44 Investments S u ff ffe s t io n s f o r l » i i r H a u ti In v e s t m e n t P o r t f o l i o te rm rates, th e b a n k e r w h o has his b o n d m a tu rities c o n c e n tr a te d in th e first five y ea rs, p r e fe r a b ly c o m in g du e in a p p ro x im a te e v e n a m ou n ts, is in a p o s itio n to rid e ou t a n y storm . T h e Three Investment Men Give Their Views to Northwestern Banker Readers "5 YEAR MATURITIES" By JAM ES H. CLARKE Vice President, American National Bank & Trust Company, Chicago D esp ite th e d iffe re n ce s o f o p in io n in W a s h in g to n w h ic h h a v e b r o u g h t a b ou t an u n e a s y fe e lin g in th e b o n d m a rk et, I see n o rea son fo r b a n k e rs w h o h a v e b e e n fo llo w in g a sou n d in- v e stm e n t p r o g r a m to m a k e an y ch a n g es n o w . F o r m a n y y e a rs w e h a v e a d v o ca te d an in v e s tm e n t p r o g ra m w h ic h re s tr ic te d b o n d m a tu ri ties fo r c o m m e r c ia l b a n k s to a m a x i m u m o f ten y e a rs w ith th e b u lk o f in v e stm e n ts c o m in g du e in th e on e to five y e a r p e rio d . R e g a rd le ss o f w h a t h a p p en s e ith er to s h o r t o r lo n g Y E S ...W E HAVE NO INCENTIVE It has often been hinted by executives in other fields that we DeLuxe people run our sales staff like amateurs. W e have no quotas, no commissions, no bonuses, no campaigns, no prizes . . . and therefore, according to the experts, we should get no effort. From time to time we are "given the business” by organizations that spe cialize in pepping things up, and they more or less drool as they contem plate what they could do for us because to them we represent the ideal pros pect for the well-known shot in the arm. Well, we are not buying it be cause we like our slow -m oving, unbrilliant selling technique. W h ile this no doubt will embarrass our representatives, we know they really work hard and, though as indi viduals they might be classed as the "low pressure” type, we have had Deluxe plenty of evidence that, as a team, they pack a punch that is effective and constructive. Risking the razzing we will get for this advertisement, we unhesitatingly exercise the prerogative of a copy writer who has in the past thrown bouquets at our production people, by now handing an orchid to a sales staff that is doing a perfectly swell job with no eyes on the "cent” in incentive. It seems to us that the distinction between sales incentive or lack of it lies in the overall objective o f the com pany. If this objective is simply to make sales, then unquestionably the monetary incentive is needed to do the trick. On the other hand, if the objec tive is to build business, then such stimulated sales pressure might create an out-of-balance condition not good for the company or its customers. JAM ES H. CLARKE “Make no changes now” p r ic e flu ctu a tion s in th is g r o u p w ill n ot b e se riou s an d w ith b o n d s m a tu r in g ea ch y e a r h e w ill h a v e fu n d s to take a d v a n ta g e o f lo w e r p r ic e s sh o u ld th e y d e v e lo p . I f th ere are b a n k s w ith c o n c e n tr a tio n s in lo n g b o n d s th is seem s lik e a M a n u fa c tu rin g P lants a t : N E W Y O R K , P A O L I, C L E V E L A N D , C H IC A G O , K A N S A S C IT Y , ST . P A U L CHECK P R IN T ER S cPac. ____ A r iz o n a ’s c o n t i n u i n g e c o n o m i c p r o g r e s s is WHEELOCK & CUMMINS, INC. IOWA AND GENERAL MARKET MUNICIPALS PUBLIC UTILITY. INDUSTRIAL AND RAILROAD SECURITIES IOWA CORPORATE SECURITIES UNDERWRITERS DISTRIBUTORS M em bers M idw est S tock E x ch a n g e 200 E quitable Bldg. 135 South LaSalle St. DES MOINES 9. IO W A CH ICAGO, ILLINOIS reflected by our year-end deposits which passed the quarter-billion dollar mark - an increase of 37 8% during the last decade. ARIZON A’S STATE-WIDE BANK VALILEV NATOONAL B A N K RESO U R CES $268 M ILLIO N Home Office —Phoenix, Arizona CORPORATI» Northwestern Banker. March, 1951 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Investments g o o d tim e to g e t clo s e r to sh ore. T h e sp rea d in th e y ie ld s n o w in sh ort and lo n g b o n d s is so sm a ll th at th e risk in th e lo n g e r en d d oes n o t seem w o r th w h ile. "MEDIUM, SHORT TERM" By d . e . Mc F a r l a n d Vice President, Kalman & Co. Minneapolis, Minnesota On th e b a sis o f y ea r-en d statem en ts, m a n y b a n k s h a v e h ad a la rg e in crea se in loa n s th e p a st y ea r, w h ile th e ir d e p o sits h a v e in cre a se d s lig h tly o r r e m a in ed a b ou t th e sam e. C o n se q u e n t ly, at th e p re s e n t tim e th e y s h o w a sm a ller p e rce n ta g e o f cash , g o v e r n m en ts and m u n icip a ls. S in ce cash and g o v e r n m e n ts still re m a in h ig h in m ost o p in io n o f th is s u b je c t b e tw e e n th e T r e a s u r y an d th e F e d e ra l R ese rv e . U n d er th ese c ircu m s ta n c e s , c o m m e r cia l b a n k s sh o u ld c o n tin u e to m a n a ge th eir in v e s tm e n t p o r tfo lio s to a ch ie v e a w e ll d istrib u te d m a tu rity sch ed u le w ith o u t du e c o n c e n tr a tio n in sh o rt or lon g. S h ort to m e d iu m te rm ra ilroa d e q u ip m e n t tru st o b lig a tio n s to d a y len d th e m s e lv e s w e ll to su ch a p r o g r a m in th at sh ort-term y ie ld s a p p ea r fu lly a d ju sted to an e a rlier F e d e ra l R e s e r v e in cre a se in sh ort-term rates a n d d if fe re n tia ls o f 25 to 50 b a sis p o in ts are o b ta in a b le in th is field c o m p a r e d to sim ila r m a tu rin g g o v e rn m e n ts . T h e n e a r b y s u p p ly o f n e w issu es o f h ig h q u a lity co r p o r a te b o n d s w ill d . e . M cF a r l a n d “ Maintain short, medium municipals” ca ses, it w o u ld seem a d v isa b le to m ain ta in , an d p e rh a p s in crea se, sh o rt and m e d iu m te rm m u n ic ip a l h o ld in g s fo r tw o rea son s: (1 ) th e p re s e n t and p r o s p e c tiv e ta x situ a tion an d (2 ) c r e d it re s tr ic tio n s an d lo a n in g p o lic ie s w h ic h w ill p r o b a b ly b r in g a b ou t a d e cre a s e in loans. "STABLE RATES" By LUTTRELL MACLIN Representative of Merrill Lynch, Pierce, Fenner & Beane, New York T h e T r e a s u r y w ill h a v e h u g e a m o u n ts o f b o n d s to r e fu n d b e tw e e n n o w a n d th e en d o f 1952, b e sid es h e a v y m a tu ritie s o f n otes. In a d d i tion , som e d eficit fin a n cin g m a y be n e c e s s a r y to h e lp m e e t r is in g r e a r m a m e n t e x p e n d itu re s. H en ce, a r e c e p tiv e m a rk e t fo r g o v e r n m e n t se cu ritie s m u st b e m a in ta in e d to in su re s u c c e s s fu l fin a n cin g . W e th e r e fo r e b e lie v e th at a p e r io d o f r e la t iv e ly sta b le ra tes lies ahead, r e a liz in g th a t th e re is a d iffe re n ce o f https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis he la rg e and in th is field re la tiv e ly at tra ctiv e v a lu e s are lik e ly to be a v a il ab le in th e n e x t fe w m on th s. W ith p re ssu re o v e r a p e r io d lik e ly to c o n tin u e in th e d ir e c tio n o f h ig h e r co r p o r a te taxes, m u n ic ip a l b o n d s , a v a ila b le in d iv e rsifie d m a t u r i t y ra n g es, re m a in im p o rta n t in v e s tm e n t m ed ia fo r c o m m e r c ia l b a n k s.— T h e E nd. Facilities Inaugurated W h e n M a n u fa ctu re rs T ru s t C om pa n y, N e w Y o rk , o p e n e d its b a n k in g fa cilitie s at F o r t J a y o n G o v e r n o r s Is land, th e first tra n sa ction , th a t o f b u y in g a U n ited States S a v in g s B on d , w a s c o n s u m m a te d b y Lt. G en era l W illis D. C ritte n b e rg e r, C o m m a n d in g G en er- As a commercial banker, you know Imprinter is in use . . . central proof all about the headaches and cost of machine operation is speeded up check-handling operations. s h a r p l y ...b o o k k e e p e r s c a n be Now you can reduce substantially those mis-sorts, mis-postings, signa ture-deciphering delays, slow check m ovem ents. . . by installing a 1 0 0 % p ocket-check im printing program with the new Todd Imprinter! sw itched w ithout im pairing e ffi ciency . . . sorting errors are reduced by 85%. To these benefits, add the Todd I m p r in t e r ’s e co n o m y and sp e e d ! W ith rising personnel problem s Only 20 to 25 checks at a tim e need to be imprinted for each customer and the pressing need for greater efficiency, now is the time to plan from receipt of order to printed and ah ea d and a d o p t 1 0 0 % ...a n d that takes only 139 seconds Todd bound b o ok .* Immediate on -th e - imprinting. A recent survey made spot check delivery to customers is assured! by independent industrial engineers certifies that training time for cen tral proof machine operators is cut more than half w here the Todd 45 Find out what the Todd Imprinter can do for y o u . . . mail the coupon now. "According to tim e study analysis of average daily production in a metropolitan commercial bank (name on request). THE TODD COMPANY, Inc., Dept. NB Rochester 3, N.Y. Please give us the engineers’ survey and com plete details about 10 0 % pocket-check imprinting with the new Todd Imprinter. Bank_______________________________________ Address_______________________________ __________ RO CHESTER R SALES OFFICES IN ^ | r D IS TR IB U T O R S NEW YORK n PRINCIPAL CITIES THRO U G HO U T THE W ORLD City---------------------------Zone -State____________ By-----------------------------------------------------------------------NB—3-51 Northwestern Banker, March, 1951 46 Investments E M I ’ M IYEIIS M U TU A L C A SU A L TY COM PANY7 al o f th e 1st A r m y . G en era l C ritten b e r g e r is s h o w n h e re r e c e iv in g th e b o n d fr o m R a y m o n d C. D eerin g , v ic e p re s id e n t and c o m p tr o lle r o f th e ban k . T h e b a n k in g fa cility , u n d e r w h ic h M a n u fa ctu re rs T ru s t C o m p a n y op er- , Continues Steady Uninterrupted Growth Condensed Statement as o f D ecem ber 3 1 , 1 9 5 0 A S S E T S DIRECTORS J. W . GUNN Chairman of the Board and Treasurer, Des Moines, Iowa JOHN P. HYNES President, Des Moines, Iowa DR. D. E. BAUGHMAN Fort Dodge, Iowa W . H. BRENTON Pres., Brenton Bros., Des Moines, Iowa H. L. H.TERMSTAD Pres., Citizens Fund Mutual Fire Insurance Co., Red Wing, Minn. U n ited S ta tes G o vernm ent B o n d s*....$ 1 2 ,3 7 4,7 2 9.22 O ther S tate and M unicipal B o n d s*.... C ash in B a n k s.............................................. 1,90 2 ,58 8 .9 7 R eal E s ta te — H om e Office B u ild in g.. 326 ,5 87 .5 9 R eal 608 ,8 59 .0 7 FRANK KOHRS Pres., Kohrs Cold Storage Co., Davenport, Iowa W . Z. PROCTOR Attorney at Law, Des Moines, Iowa R. W . WEITZ Contractor, Des Moines, Iowa M. J. W ILKINSON Vice-President and Supt. of Agents, Des Moines, Iowa DR. R. W . WOOD Physician and Surgeon, Newton, Iowa A A ccru ed In te re st and O ther A s s e ts .. 119,093.25 T o ta l A d m itte d A s s e t s __________ $ 21 ,7 89 ,1 38 .9 8 The General buys a bond from M r. Deering R E S E R V E S R eserve f o r C la im s.................................... $ 9 ,16 4 ,99 4 .4 9 Funds set aside to fully pay all incurred and expected losses. R eserve fo r U n earn ed P re m iu m s...... 6 ,180,664.00 Funds set aside to return to every Pol icyholder the unearned premium in event of cancellation. R eserve fo r T a x e s — S tate and F ederal ........................................................ 4 93 ,343.11 A ll O th er R e serv e s............................ 8 9 7 ,6 71 .0 6 Included in this Reserve is a sufficient amount to pay dividends on all partici pating policies. T otal R eserves .................................... $ 16 ,7 36 ,6 72 .6 6 R eserve f o r C on tin gen cies .................. $ 1,0 0 0,0 0 0.00 U N A S S IG N E D S U R P L U S ................ 4 ,05 2 ,46 6 .3 2 T otal .................... ................................... $ 21 ,7 89 ,1 38 .9 8 * Amortized Values. INSTIT UTION 2 1 0 Seventh Street B R A N C H Philadelphia, Pa. Charlotte, N. C. Lansing, Mich. Milwaukee, Wis. Chicago, 111. , W orkmen s Compensation Northwestern Banker, March, 1951 Des Moines O F F I C E S Jackson, Miss. St. Louis, Mo. Minneapolis, Minn. Kansas City, Mo. Omaha, Neb. Automobile Plate Glass https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 576 ,4 26 .9 0 Current balances due from Agents and Policyholders. NA T IONAL Home Office M o r tg a g e s— F .H .A ........ P rem iu m s R eceivable— N o t P a st D ue 1,63 3 ,43 2 .1 6 CARL MUELHAUPT Secy., Central Service Co., Des Moines, Iowa AMOS C. PEARSALL General Manager Pittsburgh-Des Moines Steel Company, Des Moines, Iowa E s ta te Stocks and F ederal S av in gs Certificates .......................... W . J. HYNES Secretary, Des Moines, Iowa DR. L. E. KELLEY Physician and Surgeon, Des Moines, Iowa 4 ,24 7 ,42 1 .8 2 No bonds owned by the Company have ever been in default either as to inter est or principal. # Wichita, Kans. Dallas, Tex. Denver, Colo. Seattle, Wash. , Public Liability Insurance Fidelity and Surety Bonds ates as d e p o s ito r y and fin a n cia l a gen t fo r th e U n ited S tates g o v e r n m e n t, is o p e n each w e e k , M on d a y th r o u g h F r i day, fr o m 10:00 a. m. to 2:00 p. m. T h e fa c ility is u n d e r th e d ir e c t s u p e r v is io n o f Col. M ich a el C. Shea, d e p u ty p o s t co m m a n d e r, an d Lt. C ol. M e rrill H. P h o e n ix , p o st fin a n ce officer. “ D o y o u sa y y o u r p r a y e r s n ig h t and m o rn in g , J o h n n y ? ” “ O n ly at n i g h t , m a ’am . I ’m n ot sca red in th e d a y tim e .” 47 INSURANCE of#* N ew A (fe His Aijeneij to s:tl.:tH O Volitine in .7 Years ff A NORTHWESTERN BANKER interview with TED A. SEELY Ted A. Seely Agency Freeport, Illinois “ Keeps making calls consistently” L OO K at it a n y w a y y o u w a n t to, b u t sta rtin g in th e lo ca l a g e n cy b u sin ess is n o t th e ea siest task in th e w o r ld , an d w h e n th a t start m u st b e m a d e fr o m scra tch , th en th e p r o b lem ca n g et p r e tty tou gh . T y p ic a l o f th e m a n y y o u n g and d e te rm in e d m en w h o d ecid ed to set u p th eir o w n a g e n cie s a fter W o r ld W a r II is T e d A . S eely o f F r e e p o r t, I lli n ois. W h e n h e sh ed th e fly in g su it an d w in g s o f an A ir F o r c e p ilo t a fter th e w a r, T e d w e n t in to th e in su ra n ce b u sin ess w ith a lo ca l a g en t in E n id , O k la h om a . A y e a r an d a h a lf later, w ith som e g o o d s e llin g e x p e r ie n c e u n d er h is belt, h e d e cid e d to strik e ou t o n h is o w n . A ft e r lo o k in g a ro u n d at p o te n tia l lo c a tio n s h e settled fo r F r e e p o r t, a c it y o f a b o u t 25,000 p e o p le , h is h o m e sin ce 1930. It w a s “ h o m e ” to h im , b u t h e h ad b e e n g o n e fo r n e a r ly a h a lf d o z e n y ea rs, w h ic h ca lle d fo r an e x te n siv e “ g e t-a cq u a in te d ” p ro g ra m . Announcement H is first step w h e n h e o p e n e d h is office in O ctob er, 1947, w a s to sen d a letter to e v e r y p e r s o n in th e F r e e p o r t te le p h o n e b o o k w h o m ig h t be a p r o s p e c t fo r in su ra n ce, in tr o d u c in g h im s e lf a n d a n n o u n c in g th e o p e n in g o f h is a g en cy . T h e letters w e r e m u ltig ra p h e d an d h e ty p e d e v e r y e n v e lo p e h im s e lf a n d m a iled th e m ou t. L e tte rs a lon e w o n ’t d o th e trick , so T e d set o u t on th e ta sk o f fo llo w in g u p h is b e st leads. It w a s im p ra ctica l to e m p lo y an office s e c r e ta r y at th a t stage o f th e g am e, so th e office te le p h o n e w a s tied u p w ith h is h o m e te le p h o n e an d M rs. S e e ly to o k th e ca lls at h o m e if T e d w a s o u t o f th e office. In a d d ition to c r a c k in g th e F r e e p o r t in su ra n ce m a rk et, T e d e x p e r ie n c e d d ifficu lty in g e ttin g co m p a n ie s at first. B u t h e k e p t at it ea ch day, g ra d u a lly b u ild in g u p h is file o f p a y in g c u s to m ers. A fe w m o n th s a fter sta rtin g the a g e n c y he b o u g h t ou t a sm a ller a g e n c y w h e n th e a g en t d ied an d m o st o f th ese p e o p le h a v e stu ck w ith h im . H e w e n t c o m p le te ly th ro u g h th e list o f th ese a cco u n ts, th en m a d e p e rso n a l ca lls and su g g e ste d in cre a sd co v e r a g e s an d e x te n d e d c o v e r a g e en d o rse m e n ts w h e r e th e in d iv id u a l situ a tion s r e q u ire d th ese ch a n g es. T h e fo r m e r ag en t h ad n o t g iv e n th em in d iv id u a l s e r v ic e in th is re g a rd a n d th e y a p p re cia te d th is atten tion . In a d d ition , th e fo r m e r a g e n t’s w id o w w r o te th e p o lic y h o ld e r s te llin g th em th e b u sin ess h ad b e e n sold to th e T e d A . S e e ly A g e n c y and a sk in g th em to c o n tin u e d o in g b u sin ess w ith T e d S eely . T h is w a s fo llo w e d u p w ith a n o th e r letter fr o m T e d w h o th en ca lled o n ea ch p e r s o n as s o o n as h e co u ld . It is ra th e r sig n ifica n t th at th e o n ly a cco u n ts fr o m th is fo r m e r a g e n c y th at h e lo st are th e o n es he did n o t g et a ro u n d to se e in g p e r s o n ally. Premium Results A fte r h is first y e a r o f e n d less calls, letter w r itin g and sales talks, T ed a d d ed u p th e resu lts, and th e fu tu re D id you know th a t our C ash L e tte r P olicy n ot only gives protection bu t enables you to cu t op era t in g expenses s u b sta n tia lly ? A s k us fo r d etails. Y o u w ill not obligate y o u rse lf. F I R S T N A T IO N A L , B A N K B U I L D IN G https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • C H IC A G O lo o k e d a little b r ig h te r th an it h ad on e y e a r b e fo r e . T h e b o o k s sh o w e d a t o tal o f $15,112 in p re m iu m s fo r the y ea r, an a v era g e o f $1,259 a m on th . T h is in clu d e d $13,325 in fire p re m iu m s and $1,787 in ca su a lty an d su re ty p re m iu m s. In th e n e x t y ea r, fr o m O ctob er, 1948, th r o u g h S ep tem b er, 1949, he pu t on a n o th e r $10,113 in p re m iu m v o l u m e, fo r a tota l o f $25,225. T h is in clu d e d $8,785 in ca su a lty an d su re ty p rem iu m s. A t th e c o m p le tio n in S ep tem b er, 1950, o f h is th ird fu ll y ea r, th e v o lu m e s to o d at $31,360, m o re th an d o u b le th e first y e a r v o lu m e . T e d S eely th in k s h e d o e s n ’t do th in g s a n y d iffe r e n tly th a n co u n tle ss o th e r a gen ts; h e m a k es s u r v e y s on c o m m e r c ia l a ccou n ts, a lso o n p e rso n a l a cco u n ts th a t are siza b le e n o u g h to w a rra n t th em ; he u ses th e te le p h o n e e x te n s iv e ly o n ren ew a ls, e sp e cia lly sm a ll o n es an d w h e r e p e o p le are h ard to rea ch , b u t w ill a lw a y s m a k e a p e r son a l ca ll if at all p ossib le; h e w rite s letters, and h e d oes w h a t a g e n c y p r o m o tio n w o r k h is tim e a llow s. But th e im p o rta n t th in g is th at h e k eep s firin g a w a y at all th ese ph a ses o f w o r k an d k eep s m a k in g ca lls co n s is te n tly . Establishing Himself H e d is c o v e r e d th a t m a n y p e o p le d id n ’t w a n t to p la ce to o m u ch faith in a y o u n g , n e w in su ra n ce m an. T h e p r o b le m w a s to esta b lish h im s e lf as a relia b le, h a r d -w o r k in g an d d ep en d a b le b u sin ess m an . H e has d o n e th is b y h is d a ily h o u rs o f a tten tion to ea ch Scarborough & Company Insurance Counselors 3, IL L IN O IS • STATE to Banks 2 4325 Northwestern Banker, March, 1951 48 Insurance p r o s p e c t o r c u s to m e r ’s in d iv id u a l in su ra n ce p ro b le m s, an d b y d e v o tin g a fa ir sh a re o f h is tim e to c iv ic w o r k . H e has b e e n a ctiv e in C h a m b er o f C o m m e rce w o r k , and h e lp e d r e o r g a n ize th e F r e e p o r t C o m m u n ity Chest. T h e b ig g e s t p r o b le m o f a n e w agent, h e th in k s, is in g e ttin g th e e x p ira tio n file set u p so y o u k n o w w h e n to c o n ta ct p e o p le an d tr y to g e t th e ir in su r a n ce o r r e n e w it. T h is re q u ire s a lot o f office tim e in a d d itio n to o th e r n e ce ssa ry d u ties. R e c e n t ly T e d w a s ab le to e m p lo y p a rt-tim e h e lp to h a n d le th e c le r ic a l w o r k an d a n sw e r th e telep h on e. T r y in g to set u p a ro u tin e u n d e r th e p re s s u re o f g e ttin g an a g e n c y sta rted w as a h a rd jo b , e s p e c ia lly w h e n h e had to stop in th e office e v e r y little w h ile to see w h o w a s th ere o r if a n y p h o n e ca lls h ad c o m e in. T h is has g ra d u a lly b een w o r k in g its e lf ou t, th ou g h , and h e is n o w tr y in g to w o r k o u t a m e th o d fo r h a n d lin g sea son a l or m o n th ly ca m p a ig n s. R ig h t n o w he a lw a y s tries to g e t th e office w o r k d o n e th e first h a lf o f th e m on th , th en use th e s e co n d h a lf fo r calls, b o th o n n e w p r o s p e c ts an d s e r v ic e calls. Presents Road Atlases O ne idea h e has fo u n d h e lp fu l in g a in in g p u b lic in te re st is g iv in g R andM cN a lly roa d atlases to p re s e n t c u s to m e rs and g o o d p ro s p e cts . H e sen ds o u t p o stca rd s te llin g p e o p le th e y are Another Year of Growth Shows GA IN S IN ASSETS GAINS IN RESERVES GAINS IN SURPLUS FUNDS GAINS IN PREMIUM INCOME GAINS IN INSURANCE IN FORCE a v a ila b le free. H e has g o tte n 50 to 60 p er ce n t re tu rn s o n th ese, w h ic h has g iv e n h im a g o o d o p p o r tu n ity to fo llo w up. I f h e h ea rs o f s o m e o n e w h o is g o in g on a trip , h e d e liv e r s on e in p erson . H e a lso asks th em a b o u t a p e rs o n a l e ffects floa ter and P P F . H e sa y s a ll y o u h a v e to d o is m e n tio n it to th ese p e o p le and th e y sa y “ O. K .” A fte r th ree y e a rs o f o p e r a tio n th e a g e n c y b u sin e ss is s ta b ilized p r e tty w e ll an d is d iv id e d fa ir ly e v e n ly b e tw e e n c o m m e r c ia l an d p e rs o n a l a c cou n ts. One o f th e th in g s T e d has fo u n d to be v e r y h e lp fu l in h is w o r k is h is a tten d a n ce in e a r ly 1947 at th e M a ry la n d C a su a lty C o m p a n y ’s h o m e office tra in in g s c h o o l fo r agen ts. T h is w a s a s ix w e e k s ’ c o u r s e in ca su a lty an d s u re ty lin es, an d has c o m e in h a n d y on m a n y o cca s io n s , sin ce b e tw e e n 16 a n d 20 p er c e n t o f h is b u s i n ess n o w is in th o se lin es. T e d S e e ly in h e rits a n a tu ra l in te re s t in in su ra n ce, fo r h is fa th er, W illia m A . S eely, is assista n t m a n a g e r o f C ru m & F o r s t e r ’s w e s te r n d ep a rtm en t, w h ic h is lo ca te d in F r e e p o r t. T e d h as no b u sin ess a ffiliation w ith h is fa th e r o th er th a n re p r e s e n tin g tw o C ru m & F o r s te r co m p a n ie s, th e U. S. F ir e and W e s tc h e s te r F ire, a lo n g w ith o th e r c o m p a n ie s in h is a g en cy . Service Recall? Policy Reserves .................................................................................... $ 8,918,612.10 Dividends, Advanced Premiums and Other Policy F u n d s.. 1,394,768.19 Reserve for Death Benefits on Unreported and Incomplete Claims ............................................................................................. 29,417.72 Reserve for Taxes and Miscellaneous Bills and A ccou nts.. 68,605.39 Other Miscellaneous Reserves and Liabilities......................... 166,075.85 W e ask ed T e d if h e h ad a n y sp ecia l p la n s fo r th e y e a r 1951 a n d g o t th e sam e u n fo r tu n a te a n sw e r th a t so m a n y y o u n g m e n m u st g iv e tod a y , “ I am fa c e d w ith th at p r o b le m lik e a lot o f o th e r agen ts, o f b e in g in th e A ir F o r c e R e se rv e s, w ith th e p o s s ib le ch a n c e o f b e in g ca lled to a ctiv e d u ty . T h is p r e sen ts q u ite a p r o b le m , sin ce I w o u ld w a n t to d o e v e r y th in g p o s s ib le to k eep m y a g e n c y g o in g w h ile I w o u ld be on a ctiv e d u ty .” I f T e d d oes n ot g o b a c k in to s e rv ice , h is a g e n c y w ill u n d o u b te d ly e x p e rie n ce a d d ition a l g r o w th , as it has d u r in g th e first th re e y e a rs. I f h e d oes g o in to s e r v ic e , th e ch a n ce s are th a t th e sam e d e te rm in a tio n th a t b u ilt su ch an a g e n c y fr o m sc r a tc h w ill find som e w a y o f k e e p in g th is r e p r e s e n ta tiv e “ p r iv a te e n te r p r is e ” in b u sin e ss u n til h e re tu rn s again .— T h e E n d . Total Liabilities ............................................................................$10,577,479.25 'Surplus to Policyholders.................................................................. 1,560,198.55 Observes 50th Year Financial Statement— January 1, 1951 ASSETS Cash and Bonds.................................................................................... $ 3,724,944.10 First Mortgage Loans on Real E state........................................... 7,058,739.46 Home Office Building and Other Real E state........................... 217,800.59 Stocks ......................................................................................................... 608,633.54 Loans to Policyholders and Other Secured Loans................ 276,369.35 Interest and Rents Due and A ccrued........................................... 67,502.64 Net Premiums in Course of Collection......................................... 183,688.12 Total Assets ...................................................................................$12,137,677.80 LIABILITIES Balance ...........................................................................................$12,137,677.80 'Includes Capital Stock $204,404.67. POLICYHOLDER'S RHTIOflDL LIEE INSURANCE COMPANY SIOUX FALLS, SOUTH DAKOTA Northwestern Banker, March» 1951 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis T h e Io w a H o m e M u tu al C a su a lty C om p a n y , D es M oin es, Iow a , w ill o b s e r v e its 50th a n n iv e r s a r y th is y e a r w ith tota l assets th e la rg est in th e c o m p a n y ’s h is to ry , a c c o r d in g to L. G. T h om a s, p resid en t. T h e c u r r e n t fin a n cia l sta tem en t p u b lish e d b y th e c o m p a n y in th is issu e o f th e N orthwestern B anker s h o w s tota l assets to b e $3,228,373, an in cre a se o f m o r e th a n a q u a rte r o f a m illio n d o l lars o v e r th e p re v io u s year. insurance 49 H o n o r e d A t A n n iv e r s a r i/ S u rp lu s to p o lic y h o ld e r s is a lso at a n all tim e h igh , b e in g $1,089,164, c o m p a red w ith $906,036 a y e a r ago. T h e c o m p a n y is lice n s e d in Iow a , N eb ra sk a , S ou th D akota, M issou ri, C o l ora d o, K a n sa s an d W y o m in g , w r itin g g e n e ra l ca s u a lty lin es o n an a g e n c y basis. Io w a H o m e M u tu al C a su a lty w a s a p io n e e r a m o n g co m p a n ie s d o m ic ile d in Io w a in w r itin g a u to m o b ile in su ra n ce, h a v in g w r itte n it sin ce 1914. * Farmers Life Gains In s u ra n ce in fo r c e o f th e F a rm e rs L ife In s u ra n ce C om p a n y , D es M oin es, Iow a , w a s in cre a se d b y $1,066,000 in 1950, and o n D e c e m b e r 31st tota led $32,180,484, a c c o r d in g to L. M. P eet, p resid en t. A sse ts n o w a m o u n t to $5,484,609, an in cre a se o f $596,000 fo r th e y ea r. S u r p lu s in cre a se d to $271,316, a g a in o f $82,000. In te re s t ea rn ed o n in v e s t m en ts a v e ra g e d 2.93 p e r cen t. D iv id e n d s to p o lic y h o ld e r s in 1950 tota led $66,193 and $75,000 w a s set a sid e fo r p a y m e n t o f d iv id e n d s in 1951. T h e F a r m e r s L ife In s u ra n ce C o m p a n y is an a g e n c y c o m p a n y sellin g life, a ccid e n t an d h ea lth and h osp ita l A N N IV E R S A R Y — Clayton Hakes, Sr., manager of the Safford office of the V alley N ational Bank, Phoenix, and M ayor of Safford, Arizona, receives a handsome wrist watch from W . R. Wayland, chairman of the bank’ s board of directors, in recogni tion of his tw enty-five years of service w ith the V alley National Bank on February 20. Ready to congratulate Hakes is Carl A . Bimson, executive vice president, left, and Glenn C. Taylor, senior vice president, right. March 23 marks H akes’ tw entyfifth year at the Safford office. in su ra n ce. It is lice n se d to d o b u s i n ess in Iow a , Illin o is , In d ian a, O hio, M in n esota , N o rth D ak ota, S ou th D a k ota, N ebrask a, K a n sa s and M issou ri. On Television T h e R e p u b lic N a tion a l B a n k o f D al las is the first b a n k in th e so u th w e st o ffe r in g a n e w an d e x c itin g e x p e r ie n c e 5 8 th ANNUAL FINANCIAL STATEMENT As of December 31, 1950 ADMITTED ASSETS L I A B I L I T I E S AND S U R P L U S Bonds and Stocks.......................................$7,049,635.77 Mortgage L oa n s........................................ 255,062.44 Real Estate (Home Office Building).... 130,000.00 Cash and Bank Deposits........................... 1,348,906.84 Building and Loan Association Shares.. 50,000.00 Agents’ Balances ...................................... 172,752.80 Interest Due and Accrued....................... 41,753.57 All Other .................................................. 49,816.36 Reserves: Losses .................................................... $ 714,098.07 Contingent Commissions .................... 213,848.92 Taxes (Federal, State and Other)....... 200,233.62 Unearned Premiums ............................. 1,541,956.08 All Other .......... 30,384.96 Total.................................................... $9,097,927.78 Total.................................................... $9,097,927.78 Total.................................................... $2,700,521.65 Surplus as Regards Policyholders........... 6,397,406.13 Surplus Over All Liabilities $6,397,406.13 F A R M E R S M UTUAL H A IL IN SU R A N CE CO M PA N Y O F IOWA C. P. RUTLEDGE, President 1019 High Street, Des Moines V https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, March, 1951 50 Insurance in jo u r n a lis m , a te le v is io n first, “ T h e M arch o f T im e T h r o u g h th e Y e a rs .” P re p a re d b y th e e d itors o f March of Time, p re s e n te d ea ch T u e s d a y sta rt in g F e b r u a r y 27th o v e r K R L D -T V , th is w e e k ly te le v is io n p r o g r a m w ill be b u ilt a rou n d March of Time r e leases o f th e p ast 15 y ea rs, w h ic h w ill h a v e p a rticu la r sig n ifica n ce in th e lig h t o f to d a y ’s n ew s. E a ch w e e k ly p r o g r a m w ill b e c o m b in e d w ith a p a n el d is c u s s io n b y p r o m in e n t A m e r i can s co m m e n tin g o n th e film s h o w n and re la tin g th e a ctio n o n th e scre e n to th e p r o b le m s o f tod ay. In m a k in g th e a n n o u n c e m e n t o f M a rch o f T im e T h r o u g h th e Y ea rs, F r e d F. F lo r e n c e , p re s id e n t o f th e R e p u b lic N a tion a l B a n k , stated th at th e b a n k w a s p a r tic u la r ly p lea sed to p re s e n t th is o u tsta n d in g e d u ca tion a l p r o g r a m w h ic h is d e sig n e d to b e tte r in fo r m e v e r y A m e r ic a n o f th e p erils an d d u ties, c h a lle n g e s an d o p p o r tu n i ties th a t c o n fr o n t th is grea t n a tion tod a y . T h e c o m p a n y has a b o n d a cco u n t c o n s is tin g la r g e ly o f g o v e r n m e n ts in e x ce s s o f $4,600,000. Its su rp lu s to p o lic y h o ld e r s is $2,019,690. H a rold S. E v a n s is p re s id e n t and in a re ce n t r e p o r t to a g en ts h e stated, Assets Increase $1,000,000 T o ta l assets o f $6,566,742 are s h o w n in th e n e w fin a n cia l sta tem en t o f th e A llie d M u tu al C a su a lty C o m p a n y o f D es M oin es. T h is is an in cre a se o f m o r e th a n on e m illio n d olla rs o v e r th e sam e fig u re a y e a r ago. 58th ANNUAL STATEMENT Town Mutual Dwelling Insurance Company December 3 1, 1950 ADMITTED ASSETS Cash in Banks and Office........................................................................................ $ 547,071.52 Federal Savings and Building and Loan Associations................................ 292,000.00 United States Government Bonds......................................................................... 1,694,287.91 State, County and Municipal Bonds.................................................................... 290,202.78 Canadian Government and Provincial Bonds................................................ 35,787.15 Canadian National Railway Bonds...................................................................... 92,856.89 (Guaranteed by Canadian Government) Public Utility Bonds.................................................................................................... 171,294.10 Miscellaneous Bonds .................................................................................................. 10,000.00 Stocks ............................................................................................................................... 179,731.25 Accrued Interest and Dividends........................................................................... 10,245.07 Agents' Balances (Not over 90 days d ue)......................................................... 81,782.94 Other Assets .................................................................................................................. 6,486.45 TOTAL ADMITTED ASSETS............................................................................ $3,411,746.06 LIABILITIES Reserve for Losses and Adjusting Expenses.................................................... $ 125,833.72 (Losses incurred and in process of adjustment) Reserve for Unearned Premiums......................................................................... 1,884,903.82 Reserve for Taxes and Expenses........................................................................ 74,722.32 Other Liabilities ........................................................................................................... 711.49 Total Liabilities and R eserves...................................................................... $2,086,171.35 Guaranty F u n d ............................................................................. $ 200,000.00 Surplus ............................................................................................. 1,125,574.71 SURPLUS TO POLICYHOLDERS............................................................................. 1,325,574.71 TOTAL ...........................................................................................................$3,411,746.06 INSURANCE IN FORCE DECEMBER 31. 1950 $1,067,394,305.00 & o tm c 4 lu â ia / INSURANCE DWELLING COMPANY SINCE 1892 Home Office Hubbell Building DIRECTORS Frank H. Dirst Harold S. Evans Rex H. Fowler Wm. J. Goodwin Harry F. Gross C. L. Henschel Lester T. Jones William Koch R. J. Sullivan R. Lloyd Young Northwestern Banker, March, 1951 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Des Moines O FFICERS Lester T. Jones, President C. L. Henschel, Secretary Wm. J. Goodwin, Treasurer Leslie L. Greve, Assistant Secretary Gus Scurlock, Superintendent of Agents H A R O L D S. E V A N S President Allied Mutual Casualty Company” “ A llie d M u tu al a g en ts are to b e c o n gra tu la ted o n th e fa c t th at th e y w r o te in cre a se d n et p r e m iu m v o lu m e in each o f th e 11 g e n e ra l cla ss ifica tio n s d u rin g th e y e a r 1950. T h is fine p r o d u c tio n a ch ie v e m e n t w a s re a lize d in th e fa ce o f rate r e d u c tio n s in sev e ra l c la ss e s.” T h e A llie d M u tu al is n o w in its 23rd year. Security-First National H ig h e s t y ea r-en d d e p o sits in th e h is to r y o f S e c u r ity -F ir s t N a tion a l B a n k o f L o s A n g e le s w e r e r e p o r te d o n D e c e m b e r 30, 1950, b y G e o rg e M. W a l lace, ch a irm a n o f th e b o a rd a n d th e b a n k ’s c h ie f e x e c u tiv e officer. D e p o s its w e r e $1,702,042,000, as c o m p a r e d w ith $1,602,888,000 o n D e c e m b e r 31, 1949. M ost s o u rce s o f in c o m e s h o w e d s o m e g a in s o v e r 1949, M r. W a lla c e said. O p era tin g e x p e n s e s in c r e a s e d in n e a rly all ca te g o rie s, w ith th e p r in c i pal item b e in g a $1,474,000 in cre a se in th e a m o u n t p r o v id e d fo r ta x es and a ssessm en ts. N et o p e r a tin g ea rn in g s fo r 1950 w e r e $9,998,000, o r $8.33 p e r sh are. T h is co m p a r e s w ith $9,714,000, o r $8.09 p e r sh a re fo r th e y e a r 1949. N o n r e c u r r in g p rofits an d r e c o v e r ie s fo r 1950 w e r e $2,829,000, o r $2.36 p e r share, m a k in g tota l n et p rofits o f $12,827,000, o r $10.69 p e r sh are. T h is c o m p a r e s w ith tota l n et p rofits fo r 1949 o f $9,931,000, o r $8.27 p er share. Insurance Staff Changes Assistant Cashiers A m o n g official ch a n g e s in th e staff o f th e S to ck Y a rd s N a tion a l B ank, K an sas C ity, J a m es M. K e m p e r, Jr., ch a irm a n o f th e b oa rd , a n n o u n ce s th e e le c tio n o f J. D. A lle n as p re sid e n t and d ire cto r, and W illia m L. MeK n ig h t as a ssista n t v ic e p resid en t. E. C h ester G ersten , p re s id e n t o f the P u b lic N a tion a l B a n k and T ru s t C om p a n y o f N e w Y o rk , has a n n o u n ce d th e a p p o in tm e n t o f th re e assista n t ca sh iers: G e o rg e R. M o n tg o m e r y o f the in v e s tm e n t a d v is o r y d iv is io n ; S. B e rn ard A d n e p o s , w h o w ill be id en tified w ith th e B r o a d w a y an d 24th S treet office, and N ich o la s R o d e lli, a d m in is tra tiv e a ssistan t in the o p e r a tin g d iv i sion o f th e ban k . M r. A lle n sta rted h is b a n k in g ca reer w ith th e F ir s t N a tion a l B an k , Glenw o o d S p rin g s, C olora d o, in 1917. H e m o v e d to the F ir s t N a tion a l B ank, E a gle, C olora d o, in 1919, w h e r e he se rv e d as a ssista n t ca sh ie r an d ca sh ier, and w a s e le cte d p r e s id e n t o f the b a n k in 1935. H e w a s p re s id e n t o f th e C o lo ra d o B a n k ers A s s o c ia tio n in 1938-1939 and a m e m b e r o f th e b o a rd o f d ir e c to r s o f th e D e n v e r B ra n ch o f th e F e d e ra l R e s e r v e B a n k o f K a n sa s C ity u n til h is re s ig n a tio n on m o v in g to K a n sa s C ity. M r. M c K n ig h t is a n a tiv e K an san . H e is a gra d u a te o f th e K a n sa s State C olleg e in M ath attan an d se r v e d tw o y e a rs w ith the U. S. M a rin e C orp s in the P acific. H e has h a d w id e e x p e r ie n c e in th e liv e s to c k b u sin ess, h a v in g o w n e d an d o p e ra te d a ca ttle ra n ch in N em ah a, K an sas. H e has b een c o u n t y a g en t in N em a h a c o u n t y and resig n ed th at p o s itio n to jo in the S tock Y a rd s N a tion a l B ank. an a n n o u n ce m e n t b y N. B a x te r Jackson , ch a irm a n . A t th e C h em ica l B an k h e w ill be a ssocia ted w ith H o w a rd W . M cC all, Jr., an d W illia m G. D eW itt, v ic e p re s i d en ts, an d D a n iel A . F in la y so n , a ssist ant v ic e p resid en t, in th e h a n d lin g o f th e g e n e ra l b u sin ess o f th e b a n k in the sou th ea stern states, in c lu d in g th e su b sta n tia l te x tile b u sin ess in th ose states. Continues As President New Vice President K e n n e th A. D u rh a m has b e e n a p p o in te d a v ic e p re sid e n t o f C h em ical B a n k & T ru s t C om p a n y , a c c o r d in g to T h e b o a rd o f d ir e c to r s o f th e F e d era l R e s e r v e B an k o f C h ica g o an n o u n ce s th e r e a p p o in tm e n t o f C. S. Y o u n g as p re sid e n t and o f E rn e s t C. years of sound service are hack of your Allied Mutual Policies This F inan cial S ta tem en t m ark s an im p orta n t m ilestone in the sustained advance o f a ca su alty insurance com pany organized and dedicated to the protection and service of its policyholders. STATEM ENT OF ASSETS AND LIA BILITIES A s o f D ecem ber 31, 1950 ASSETS Dividend T h e b o a rd o f d ir e c to r s o f M a n u fa c tu rers T ru s t C o m p a n y has d ecla red th e r e g u la r q u a r te r ly d iv id e n d on the b a n k ’s ca p ita l s to c k in th e a m o u n t o f 60 ce n ts p er sh are, p a y a b le o n A p r il 15, 1951, a c c o r d in g to s to c k h o ld e r s o f r e c o r d on M a rch 19, 1951. New Look O ne o f th e tr a v e le r ’s b e s t frien d s, th e A m e r ic a n E x p r e s s T r a v e le r s ’ C h equ e, has h a d its fa ce lifted . D u rin g th e 60 y e a r s sin ce th e c o m p a n y o r ig in a te d tr a v e le r s ’ ch eq u es , th e fa ce o f th e A m e r ic a n E x p r e s s ch e q u e has b e c o m e fa m ilia r to h o te l k e e p e rs and m e rch a n ts in e v e r y p a rt o f the, w o rld . O n ly m in o r a ltera tion s h a v e b een m ad e in th e n e w ch eq u es , a c c o r d in g to O laf R a v n d a l, v ic e p re s id e n t in ch a rg e o f tr a v e le r s ’ ch e q u e sales. T h e p r in c i pal ch a n g e is th e a d d ition o f an im p rin t o f a R o m a n g la d ia tor, th e e m b lem w h ic h a p p ea rs on th e c o m p a n y ’s s to ck certifica tes. O th er ch a n g e s in clu d e th e u se o f m o d e rn , m o r e a ttra c tiv e ty p e a n d a d e e p e r h u e o f p u rp le. W h ile th e n e w ch e q u e s are a lrea d y in use, old ch e q u e s are still b e in g sold, and M r. R a v n d a l e m p h a size d th at th ere is n o tim e lim it o n th e v a lid ity o f e ith er th e o ld o r n e w ch eq u es. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 51 .$ 3 70 ,375.17 R eal E sta te (H o m e O ffice)................................... B onds (A m o rtiz e d V a lu e ) G o vern m en t ....................-............ $4,6 4 5,6 8 5.09 C ounty ......................-..................... 164 ,0 32 .9 6 R ailroad (G ov . G uaranteed) 116,164.10 Public U tility -----------------------2 0 8 ,5 66 .6 7 2 0,0 0 0.0 0 5,15 4 ,44 8 .8 2 M iscellaneous Stocks (M a r k e t V a lu e ) 40.6 7 5.0 0 Public U t i l i t y ............................... $ 110,175.00 69.500.00 In du strial and M iscellaneous 528,926.65 C ash and B ank D e p o sits................ 3 75 ,059.72 A g e n t s ’ B alances N o t P a st D u e............................... 23,1 5 4.0 8 In terest and Dividend Incom e Due or A ccrued 4,60 2 .64 R einsurance Recoverable on Paid L o sse s........... T otal A d m itte d A s s e t s ......................................... $ 6 ,5 6 6,7 4 2.08 L IA B IL IT IE S R eserve fo r L ia b ility and W o r k m e n ’s C om pen sation C laim s ............— ............. ....... ........................$1,5 5 2,4 9 5.33 R eserve fo r A ll O ther C la im s.................... ............... 407 ,2 09 .6 3 E stim a te d E x p en se o f In v e stig a tin g and A d ju s tin g C laim s ........... 62,228.92 R eserve f o r U nearned P re m iu m s_________ 2 ,29 5 ,78 1 .8 5 R eserve fo r T a x e s ............................................................. 164,864.93 R eserve fo r Current A c c o u n ts__________ ___ _____ 4 2,6 6 5.5 8 R eserve f o r D ivid en d s.......................... 17,869.90 F unds H eld U n d er R einsurance T re a tie s_____ 3 ,935.71 T otal L iab ilities ___ ___ ___________________ ___ $4,5 4 7,0 5 1.85 ^Surplus to P olicyh old ers_______ ___ _____________ 2 ,019,690.23 T otal .............................................................................. $6,566,742.08 Over 1500 agents offer Dependable Casualty In surance protection. AUTOMOBILE COVERAGE Property Damage Liability Medical Payments Comprehensive Collision Fire, Theft and Windstorm Towing and Labor Costs LIABILITY OTHER THAN AUTO Owners’, Landlords’, and Tenants’ Manufacturers’ and Contractors’ Owners’ or Contractors’ Protective Elevator Contractual Liability Storekeepers’ Liability Garage Liability Comprehensive Personal Liability BURGLARY Storekeepers’ Burglary and Robbery Residence and Outside Theft Office Burglary and Robbery WORKMEN’S COMPENSATION COMPREHENSIVE GLASS Allied Mutual Pays ^Includes $250,000.00 Guaranty Fund. Allied Mutual Casualty Co. HAROLD S. EVAN S, President 4tli and Park Streets Des Moines 9, Iowa Northwestern Banker, March, 1951 52 Insurance S c h o o l o f Ittin liio ff M tveuhfust h o p e th at w o r ld e v e n ts w o u ld n o t n e cessita te re a rm a m e n t e x p e n d itu r e s o n a la rg e scale, th e re w a s a p o s s ib ility that, as a n a tion , w e co u ld eat ou r ca k e and h a v e it, too, b y th e sim p le e x p e d ie n t o f e x p a n d in g th e size o f th e cake. In the lig h t o f r e c e n t d e v e lo p m en ts th is c o m fo r ta b le a ssu m p tio n n o lo n g e r a p p ea rs v a lid .” W h ile th e C anadian e c o n o m y is e x p a n d in g and th e g r o s s n a tio n a l p r o d u ct “ m a y rea ch $20,000 m illio n s ” in 1951, its im p r e s s iv e g a in s h a v e b een “ in o rd in a te ly b lo w n u p ” b y th e p r ic e fa cto r, th e b a n k says. T h e p h y s ic a l v o lu m e o f g o o d s and s e r v ic e s is offi cia lly estim a ted to h a v e in crea sed , a ft er e lim in a tin g p r ic e ch a n g es, b y o n ly a b ou t 2 p er c e n t p e r a n n u m in 1947, 1948 an d 1949, d esp ite su b sta n tia l a d d i tion s to p r o d u c tiv e ca p ita l eq u ip m en t. S in ce th e w a r o u tp u t p er m a n -h ou r has risen bu t, “ w ith th e g e n e ra l tren d to a s h o rte r w o r k w e e k , it w o u ld seem th at a g o o d p a rt o f th e d iv id e n d o f n a tion a l p r o g r e s s has b e e n ta k en in th e fo r m o f added le is u re .” SCHOOL — Over 80 students, alumni and friends of the School of Banking at the U n iversity of W isconsin assembled for breakfast during M id -W in ter Conference of Illinois Bankers A ssociation held in Chicago last month. Table in the foreground clockw ise: Joseph R. Frey, president of I .B .A . and president, Lake Shore N ational Bank, C h icago; Ben H. Ryan, vice president I.B .A . and president, State Bank of East M olin e; James L. Johnson, assistant vice president, The L ive Stock N ational Bank of Chicago, chairman of arrangements for the b rea k fast; John K . Langum, vice presi dent, Federal Reserve Bank of Chicago and seminar leader of the school; Frank S. Read, vice president, First N ational Bank of Lake Forest and president of the Illinois Club of the School; James H. Clarke, vice president, American N ational Bank and Trust Company of Chicago, and member of the facu lty adm inistrative committee of the School; Herbert V . Prochnow, vice president, First National Bank of Chicago and director of the School; Harry C. Hausman, secretary, I.B .A . and past chairman of the board of trustees of the School. H a rris as first v ic e p re sid e n t o f th e ban k , ea ch fo r a te rm o f five y ea rs, b e g in n in g M a rch 1, 1951. T h es e a p p o in tm e n ts h a v e b een a p p r o v e d b y th e b o a rd o f g o v e r n o r s o f th e F ed era l R e s e r v e S ystem . Budget Increase C anadians ca n n o lo n g e r eat th eir ca k e and h a v e it, too, so fa r as th e im p a ct o f in cre a se d re a rm a m e n t e x p en d itu res u p o n c iv ilia n h abits o f life is co n c e r n e d , states th e B a n k o f M on t real in its latest m o n th ly B u sin ess R e v ie w . W. J. Coad, Sr.f Interviewed T h e B an k o f M on trea l p o in ts o u t that, p a rtly as a re su lt o f a d e fe n s e o u tla y o f $1,600 m illio n s fo r th e fiscal y e a r b e g in n in g n e x t A p r il, a fe d e ra l b u d g et o f b e tw e e n $3,600 and $4,000 m illio n s fo r tota l g o v e r n m e n ta l e x p e n d itu re s can p r o b a b ly b e a n ticip a ted . T h e size and sh ap e o f p re se n t plan s, th e r e p o r t n otes, m a k e it a b u n d a n tly clea r th at th is c o u n t r y fa ce s “ an a p p re cia b le r e d e p lo y m e n t” o f m a n p o w e r and m a te rials, an d th at th e p r o c e s s w ill n ot be a ch ie v e d w ith o u t “ som e re a d ju s t m e n t” o f c iv ilia n h a b its o f life. “ A s lo n g as th ere w e r e g r o u n d s fo r R a d io listen ers in m a n y c o u n trie s th r o u g h o u t th e w o r ld h ea rd W . J. C oad, Sr., o f O m aha d iscu ss th e a c tiv i ties o f th e N eb ra sk a C o n se rv a tio n F o u n d a tio n in a b ro a d ca st last m o n th o v e r th e V o ic e o f A m e r ic a station s. T h e F o u n d a tio n is a n on -p rofit o r g a n i za tion o f ban k s, b u sin ess co r p o r a tio n s , and in d iv id u a ls in te re ste d in th e a g ri cu ltu ra l and e c o n o m ic w e lfa r e o f N e brask a. H e w a s in te r v ie w e d fo r the p ro g ra m b y M el M ains, fa rm s e r v ic e d ir e c to r o f K M A , S h en a n d oa h , Iow a . M r. C oad is v ic e p re s id e n t o f th e F o u n d a tio n , as w e ll as ch a irm a n o f O m ar, In c. IOWA HOME MUTUAL CASUALTY COMPANY DES MOINES, IOWA FINANCIAL STATEM ENT ASSETS 1950 As of December 31 U. S. Treasury Bonds and Other Investments .$2,143,079.31 471,058.51 Cash in Banks......................................................... . 256,811.56 Cash in Hands of Agents.................................... . 23,477.65 Non Ledger Assets................................................ 93,306.03 Furniture, Fixtures and Automobiles............... 240,639.99 1949 $1,859,940.56 557,377.67 296,780.57 20,489.38 90,432.32 248,981.63 1948 $1,656,124.71 496,638.60 425,258.84 15,635.71 61,922.39 40,059.54 1947 $1,456,264.89 463,351.87 337,115.48 7,521.01 41,585.17 .$3,228,373.05 $3,074,002.13 $2,695,639.79 $2,305,838.42 LIABILITIES AND SURPLUS $ 441,488.99 Reserve for Unpaid Liability Losses................. .$ 419,629.76 294,881.85 203,212.96 Reserve for All Other Losses........................... . 7,067.36 12,192.79 Estimated Expenses of Adjusting................... 90,432.32 93,306.03 Assets Not Admitted.............................................. 95,484.20 108,755.37 Reserve for Taxes and Expenses..................... 1,311,883.93 Unearned Premium Reserve................................ . 1,228.840.00 906,035.77 Surplus to Policyholders...................................... . 1,089,163.85 $ 320,529.84 195,951.41 14,696.36 66,378.74 203,110.11 1,207,438.19 687,535.14 $ 290,044.20 190,612.70 32,404.13 43,632.03 158,390.85 1,195,952.56 394,801.95 $2,695,639.79 $2,305,838.42 Total Assets .......................................... Total Liabilities and Surplus............. .$3,228,373.05 $3,074,002.13 OFFICERS L. G. TH O M AS. HOBT. A. EVANS, Vice P resid en t . Ames F. H. QUINER, S ecreta ry, Northwestern Banker, March, 7951 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Des Moines P resid en t , Des Moines C. M. PEITZMAN, T reasurer, Grim es R. R. ANWYL, Assistant Secreta ry, Des Moines Insurance A m o n g th e sta tion s b e a m in g th e p r o g ra m w e r e tw o in M u n ich , G erm a n y , th r e e B ritish B ro a d ca s tin g C o r p o r a tio n sta tion s, a ra d io sta tion in S a lon ika, G re e ce (w h ic h can be h ea rd as fa r n o r th in E u r o p e as S w e d e n ), and th ree p o w e r fu l V o ic e o f A m e r ic a sta tion s in th e U n ited States. T h e A m e r ic a n sta tio n s can b e h ea rd in m a n y c o u n trie s o f th e W e s te r n H e m isp h e re , as w e ll as ov e rse a s. T h e in te r v ie w w a s a lso ca rrie d b y o th e r V o ic e o f A m e r ic a sta tio n s a ro u n d th e w o rld . T h e V o ic e o f A m e r ic a p r o g r a m s are d e s ig n e d to tell in h a b ita n ts o f lan ds th r o u g h o u t th e w o r ld o f th e A m e rica n w a y o f life. A lm o s t all V o ic e o f A m e r ica ra d io sta tion s are e x tr e m e ly p o w e r fu l in sta lla tion s o f 100,000 w a tts o r o r m ore. th an $43,000,000 in m a tu rity p a y m e n ts du e in 1951, it w a s a n n o u n ce d b y N o r m an B. W a a g , v ic e p re sid e n t and c o n tr o lle r o f th e in v e s to r s g r o u p o f M in n ea p olis. T h e m a tu rity p a y m en ts, M r. W a a g said, w ill be m a d e to m o re th an 16,000 in d iv id u a l certifica te h o ld e rs a cross th e n ation . D u rin g 1950 th e in v e s to r s g r o u p ’s fa ce a m o u n t ce rtifica te co m p a n ie s, p io n eers sin ce 1894 in th e field o f s y s te m a tic m o n e y a c cu m u la tio n plan s, d is trib u te d m o re th an $29,000,000 in m a tu r ity p a y m e n ts to m o re th an 11,500 certifica te h old ers. (H IG H S P O T S IN H I S T O R Y 53 M ore th an 55 p er ce n t o f th e m en and w o m e n w h o w ill r e c e iv e certifica te m a tu rity p a y m e n ts in 1951 are o v e r 50 y e a rs old. O ver 58 p er ce n t o f th o se r e c e iv in g 1950 p a y m e n ts w e r e o v e r 50. M a jo r ity o f cu r r e n t certifica te h old ers, n u m b e r in g m o re th an 400,000, are b e tw e e n 26 and 50, the c o m p a n y said. Vice President T h e b o a rd o f d ir e c to r s o f th e F irst N a tion a l B a n k in St. L o u is h a v e ele cte d M a jo r B. E in ste in as v ic e p r e s id en t, it w a s a n n o u n ce d b y W illia m F. M cD on n ell, p resid en t. H e w ill b e g in 5: KANSAS Maturity Payments H o ld e rs o f fa ce a m o u n t in sta llm en t p a y m e n t in v e s tm e n t certifica tes o f In v e s to r s D iv ersified S erv ices, In c., In v e s to r s S y n d ica te o f A m e rica , In c., and p a r tic ip a tio n ce rtifica te s o f In v e s to r s S y n d ica te T itle & G u a ra n ty C om p a n y o f N e w Y o r k S tate w ill r e c e iv e m o re GROWTH OF THE WHEAT BELT SPAIN CLAIM S LAND Excellent Y ear Back in 1541 Coronado, the Spanish governor of northern Mexico was looking for a land of gold. Upon reaching a place in central Kansas, he claimed this land for Spain. Kansas, as a great wheat state, got its start hack in the 1870’s when Mennonites from Russia settled in Kansas. With them came a new va- > riety of wheat which has helped Kansas to become one of the outstand- ALSO A HIGH SPOT . . . . . . in any agent’s career is when he joins Hawkeye-Security & Industrial. These agents know that these two great companies not only provide full casualty, industrial and fire coverage, but they also give every help in build ing business . . . prompt claim service . . . maximum number of sales helps . . . and a skilled field representative staff to work with them. H A W K E Y E -S E C U R IT Y INSURANCE CO. INDUSTRIAL INSURANCE CO. Des Moines, Iowa A n o t h e r Y e a r o f HAIL a n d S e r v i c e t o I o w a F a r m e r s STATEMENT OF CONDITION At Close of Business, December 31, 1950 A N O T H E R excellent year of opera tions fo r the M innesota Commercial M en ’s A ssociation of M inneapolis has been r e p o r t e d by Paul Clement (a b o v e ), secretary and general man ager. During 1950 the company re vised all its policy form s and placed improved coverages on the market for all select risks. Sickness claims were rather h eavy during 1950 and more serious accident claims were reported than in 1949. In spite of this claim experience and the higher expenses of conducting business, M r. Clement an nounced a gain in net assets of over $10,000. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ADMITTED ASSETS: U. S. Government and O ther Bonds................................................. ................52,227,363.84 Cash in Banks and Home Office.......................................................................... 450,028.48 Accrued Interest _________________________________________________________________ 8,723.53 Total Adm itted A sse ts............. 52,686,115.85 LIA B ILIT IE S : Reserve for Unpaid Losses and Adjusting Expense...................................... 5 36,042.20 Contingent Commission ......................................................................................... 36,068.09 Reserve for T a x e s -- ................................................................................................ 34,815.99 Other Liabilities ............................................................................................ 1,097.77 Total Liabilities .................................................................................................. 5 108.024.05 PO LICYH O LD ERS' S U R P L U S .................................................................................... 52,578,091.80 52,686,115.85 A few good locations open tor banker agents. L Write: S Q U A R E DEAL IN S U R A N C E C O . (MUTUAL) DES MOINES 8. IOWA J Northwestern Banker, March, 1951 54 Insurance T ru s t C om p a n y o f C h ica g o w ill retire on p e n sio n d u rin g M arch . T h e y are W illia m N. N elson , w ith m o re th an 37 y e a rs o f e m p lo y m e n t; Sue M. W u c h te r , w ith m o r e th an 32 y ea rs, and G ertru d e E. W o e lffe r , w ith m o re th an 31 y ea rs. h is d u ties w ith th e b a n k on M a rch 15th. M r. E in s te in is a ssocia ted w ith th e in v e s tm e n t firm o f M e rrill L y n c h , P ierce, F e n n e r & B ean e, an d w a s fo r m e r ly a g e n e ra l p a rtn e r o f W a ld h e im , P la tt & C om p a n y , in v e s tm e n t b ro k e rs. H e has b e e n p re s id e n t o f th e J e w ish H o sp ita l b o a rd sin ce 1947 an d has se rv e d on th e b o a rd s o f th e C o m m u n ity C hest, S ocia l P la n n in g an d B a rn ard F re e S k in a n d C a n cer H osp ita l. H e is a m e m b e r o f th e b o a rd o f th e St. L o u is C h apter o f th e A m e r ic a n R e d C ross an d w a s ch a irm a n o f th e sp ecia l g ifts d iv is io n o f th e 1944 R ed C ross ca m p a ign . Reserve Vice President Merger S to ck h o ld e rs o f M in n ea p olis-M olin e C o m p a n y and o f B. F. A v e r y & S on s C o m p a n y o f L o u is v ille , K e n tu c k y , ap p r o v e d a m e r g e r o f th e tw o co m p a n ie s at sp e cia l m e e tin g s h eld last m on th . T h e m e rg e r b e ca m e e ffe c tiv e M a rch 1st. It w a s a lso a n n o u n ce d th at P h ilip H . N ola n d , p re s id e n t o f A v e r y , w a s n a m ed a v ic e p re s id e n t o f M in n ea p olisM olin e. T w o o th e r A v e r y officials w e r e a p p o in te d to p o s itio n s w ith M in To Retire T h re e m e m b e rs o f th e staff o f th e C on tin en ta l Illin o is N a tion a l B a n k and n e a p olis-M olin e. S. C. T u r k e n k o p h , v ic e p re s id e n t an d trea su rer, w a s ele cte d a ssista n t tre a s u re r o f M in n e a p olis-M olin e, and G. A . S om m ers, Jr., se cre ta ry , w a s a p p o in te d a ssista n t se c r e ta r y o f M in n ea p olis-M olin e. *** ^ ^ T h e b o a r d o f d ir e c to r s o f th e F e d e ra l R e s e r v e B a n k o f C h ica g o h as ele cte d G e o rg e W . M itch e ll as v ic e p re s id e n t o f th e b a n k , e ffe c tiv e A p r il 1, 1951, it w a s a n n o u n c e d b y C. S. Y o u n g , p r e s i dent. M r. M itch ell, p re s e n tly s e n io r e c o n o m ist o n lea v e o f a b se n ce fr o m th e b a n k in s e r v in g in G o v e r n o r S te v e n s o n ’s ca b in e t as d ir e c to r o f fin a n ce o f th e state o f Illin o is , w ill b e in ch a rg e o f th e re s e a rch d ep a rtm en t. A ** A m u ßsach Daytona Beach, FLORIDA ONLY $ L 4 0 5 \ß 2 and 3 bedroom villas — slightly higher Enjoy the delightful climate, sandy beaches, fishing and boat ing. Reservation includes golf at finest clubs . . . tennis . . . swimming pool. Playgrounds . . . supervised nurseries. Sight seeing— Silver Springs, Marine Studios, Cypress Gardens, Jungle Gardens — everything. Amusements and entertainment of every description. 0 W EFK ) Enjoy taking your children on your vacation. Ellinor Village has complete deluxe homes with modern kitchens and all family furnishings. Babysitters . . . nurseries . . . babybeds and all the paraphernalia . . . fully equipped playgrounds . . . special events for the kiddies. For information or reservations call our Northern Office 200 E. Walton Street, Chicago 11, Illinois or write direct to Ellinor Village, Daytona Beach, Florida 00? U * l Northwestern Banker, March, 1951 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ù t ^ConicCa, n o w ! Insurance H a n ti T V Dividend 55 t*ro t/ra m W in s F i r s T h e b o a rd o f d ir e c to r s o f T h e F irs t N a tion a l B a n k o f C h ica g o, at a r e c e n t r e g u la r m eetin g , d e cla re d a d iv i d e n d o n th e ca p ita l s to c k o f th e ban k, p a y a b le $2.00 p er sh are o n A p r il 1, 1951, to s to c k h o ld e r s o f r e c o r d M arch 20, 1951, an d $2.00 p er sh are p a y a b le o n J u ly 1, 1951, to s to c k h o ld e r s o f r e c o r d Ju n e 20, 1951. Independent Bankers to Convene M EM BERS o f th e In d e p e n d e n t B a n k e rs A s s o c ia tio n w ill h o ld th eir an n u a l c o n v e n t io n th is y e a r in M ob ile, A la b a m a , o n M o n d a y and T u es d a y , A p r il 9th an d 10th. A n e x c e lle n t b u sin e ss an d e n te r ta in m e n t p r o g r a m is b e in g c o m p le te d b y officers o f th e a s s o cia tio n an d th e h o st c it y ’s b a n k ers, a c c o r d in g to B en F. D u B ois, s e c r e ta r y o f th e a sso cia tio n and p re sid e n t o f th e F ir s t State B a n k o f Sauk C en tre, M in n esota . L o c a te d in s o u th w e s t A la b a m a on th e M o b ile R iv e r , M o b ile is ju s t 31 m iles fr o m th e G u lf o f M e x ico . It offers a w id e v a r ie ty o f h is to rica l and m o d e rn sig h ts to en ch a n t th e v is ito r. P o p u la tio n o f th e g re a te r c it y is 200,000, and it ca n b e e a sily re a ch e d b y plan e, tra in o r auto. O fficers o f th e a sso cia tio n a re: C. R. B ell, p re sid e n t, A n n is to n , A la b a m a ; G u y S tu rg eon , v ic e p re sid e n t, S h eri dan, W y o m in g ; C h a rles C. R ie g e r, trea su rer, M in n ea p olis, M in n esota , and SPECIALIZING IN A U T O M O B ILE FIRE W IN D S T O R M Clifton Utley, the popular T .Y . news commentator on Front Line Camera, spon sored b y The First National Bank of Chicago over Station W .N .B .Q ., won first place (in the news category) in the second annual popularity poll conducted by T .Y . Fore cast magazine. Presentation of a handsome gold statuette was made on a program early last month. The half-hour program has been telecast since last July. Pictured above from le ft to right are Edward Prentiss, announcer; R. A . Kubicek, editor T .Y . Forecast; Harold W . Lewis, F irst N ational Bank vice president; Clifton Utley, com m entator; and Harry G. Duntemann, assistant cashier of the First N ational B ank of Chicago. B en D u B ois, s e cre ta ry , S au k C entre, M in n esota. B a n k ers w h o h a v e n o t m a d e re s e r v a tio n s as y e t sh o u ld co n ta c t e ith er B en D u B ois at S au k C en tre o r C harles C. R ie g e r, w h o is v ic e p re s id e n t o f th e M a rq u ette N a tion a l B a n k in M in n ea p olis. 5 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 S 5 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 $ 8 8 8 8 8 8 88 8 58 & » 8 38 38 5® 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 ft 8 8 s' 8V8 ¡88 8 88 8 8 8 8 88 8 8 8 8 8 8 8 8 8 8 8 8 * » » » « « 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8V 8 8 8 8 8 8 8 8 bankers can't cross their fingers... 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 T h a t’s why so m any prefer S t. P a u l’s B an k er’s B lanket Bonds . . . w ith extended coverages and unexcelled claim service. 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 INSURANCE BANKER'S BLANKET BONDS 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 CENTRAL STATES MUTUAL INSURANCE ASSOCIATION Mt. Pleasant, Iowa E. A. HAYES President O. T. WILSON Secretary Established in 7929 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 8 8 8 8 8 8 8 8 8 8 8 8 8 88$ 8 8 8 8 8 8 8 8 8 8 8 8 8 Northwestern Banker, March, 1951 B A Bank Is — A N O H IO B We have been doing business with good institution since 1881, when chartered, and not once since then have regretted this action. It is not only an off appreciation which I would express bi cordial personal one for the efficient mai in which you have husbanded ou r bank fi and rendered dependable service." NEW YORK Member Federal Deposit Insurance Corporati< Northwestern Banker, March, 1951 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 57 ca sh ier o f th e N o r th w e s te r n N a tion a l B a n k o f M in n ea p olis. Minnesota NEW S W ILLIS A. PUTMAN President Duluth ROBERT E. PYE Secretary Minneapolis Bank Women to Meet Fairmont A r r a n g e m e n ts are b e in g m ad e fo r th e th re e d a y jo in t c o n fe r e n c e o f th e L a k e an d M id w e st D iv is io n s o f th e A s s o c ia tio n o f B a n k W o m e n to b e h eld in M in n e a p o lis, M in n esota , o n A p r il 27th, 28th an d 29th, at th e H o te l R adisson. M iss V ir g in ia A . R eh m e, re g io n a l v ic e p re s id e n t o f th e M id w e st D iv is io n an d a ssista n t ca sh ie r o f th e S ou th ern C o m m e rcia l and S a v in g s B a n k o f St. L o u is, M issou ri, has a p p o in te d M iss D o r o t h y M cM ille n o f th e M id la n d N a tio n a l B a n k o f M in n ea p olis, g e n e ra l ch a irm a n . M iss M cM ille n re p o r ts th at ten ta tiv e p la n s p r o v id e fo r in s p ira tio n a l sp ea k ers, a ttra ctiv e e n te rta in m en t an d a m p le o p p o r tu n ity fo r g o o d fe llo w s h ip . E le c tio n o f D on a ld R. G ra n g a a rd as v ic e p re sid e n t o f th e F ir s t N a tion a l B a n k o f F a irm o n t, M in n esota , is an n o u n c e d b y H . M. J o h n s o n , p resid en t. M r. G ra n g a a rd jo in e d th e b a n k ’s offi cia l staff a y e a r a g o as a ssistan t c a s h ier, and fo r m e r ly w a s a ssocia ted w ith th e R e d R iv e r N a tion a l B a n k at G ran d F o rk s , N o r th D akota, th e M in n esota N a tion a l B a n k at E a st G ra n d F o rk s, M in n esota , and v a r io u s F ir s t B ank S tock C o rp o ra tio n affiliates in M in n e a polis. Elk River M ilton J. D w y e r w a s ele cte d e x e c u tiv e v ic e p re s id e n t and ca sh ie r o f T h e B a n k o f E lk R iv e r, E lk R iv e r , M in n e sota. H e has s e rv e d th e B a n k o f E lk R iv e r fo r th e p ast fo u r y e a r s in th e ca p a city o f ca sh ier, u n d e r th e late P re sid e n t C h arles H . B ade and w ill n o w tak e o v e r th e m a n a g e rsh ip du ties. M a h lon J. B a b co ck , A n o k a , M in n e sota, is p re sid e n t o f T h e B a n k o f E lk R iv e r and ch a irm a n o f th e b oa rd . H e w ill n o t b e a c tiv e as h e w ill c o n tin u e in h is officia l d u ties w ith R . E a rl B r o w n o f M in n ea p olis. Increase Capital A t th e a n n u a l m e e tin g o f th e b o a rd o f d ir e c to r s o f th e S ib le y C o u n ty B a n k o f H e n d e rso n , M in n esota , it w a s v o te d to in cre a se th e ca p ita l o f th e b a n k fr o m $15,000 to $25,000. N o officia l ch a n g e in th e b a n k staff w a s m ade. Preston W . A . G arrett, fo r m e r ly ca sh ie r o f th e F a rm e rs & M erch a n ts State B a n k o f P re sto n , M in n esota , h as b e e n ad v a n c e d to v ic e p re s id e n t a n d ca sh ier, b e c o m in g e x e c u tiv e officer o f th e in sti tu tion . T h e b a n k a lso m a d e a ch a n g e in its ca p ita l s tru ctu re an d n o w sh o w s $50,000 ea ch in ca p ita l, su rp lu s an d re s e r v e fo r co n tin g e n c ie s . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Ellendale T h e E lle n d a le State B an k , at its a n n u al m e e tin g p a id a 10 p er ce n t d iv i dend. T h is b a n k sta rted o n M ay 10, 1916, w ith a ca p ita l o f $10,000 an d a su rp lu s o f $2,000 and u n d iv id e d p rofits o f $500. A t th e r e c e n t m e e tin g it w a s v o te d to in cre a se th e ca p ita l s to c k fr o m $10,000 to $25,000, o u t o f p re v io u s ea rn in g s. T h is is on e o f a fe w b a n k s in s o u th ern M in n esota th at d id n o t h a v e to re o rg a n iz e a fte r th e b a n k h o lid a y and p u t in n e w m o n e y fo r cap ital. It o p e n e d a fte r th e b a n k h o lid a y 100 p er ce n t w ith n o a ssessm en t to s to c k h o ld ers and d ir e c to r s an d n o cu t in th e c u s to m e r s ’ d ep osits. S. J. S an de op e n e d th is b a n k as ca sh ier on M a y 10, 1916, and is still th ere. Service Charges A r e v is e d sch e d u le o f c h e c k in g a c c o u n t s e r v ic e c h a r g e s has b e e n a d op ted b y th e F ir s t N a tion a l B a n k o f P r o c to r , M in n esota . T h e in crea se in c h e c k a c c o u n t ch a rg es, th e first re v is io n o f th e sch ed u le a d op ted b y m e m b e rs o f D u lu th C lea rin g H ou se sin ce 1943, w a s b r o u g h t a b ou t b y th e g e n e ra l rise in o th e r se r v ic e s and c o m m o d itie s d u rin g th e p ast eig h t yea rs. A d o p te d b y th e lo ca l b a n k a lo n g w ith the o th e r D u lu th b a n k s is th e fo llo w in g n e w m ea su red s e r v ic e ch a rg e sch ed u les: 5 ce n ts p er each led g er en try , d eb it or cred it; 50 cen ts m a in te n a n ce c o s t o n ea ch a cco u n t p er m o n th (a c tiv e o r in a c tiv e ); se rv ice cre d it o f $1.00 p er $1,000 o r a n y fr a c tio n th e r e o f o f th e lo w b a la n ce d u rin g th e m on th , and n o ch a rg e o f less than 25 cen ts. Elected President A . M. L ee, H e n d ru m b a n k er, has b een ele cte d p re s id e n t o f th e F ir s t N a tion a l B a n k o f R osea u , M in n esota . T h e o th e r officers ele cte d are: P e te r S jo b e rg , B a dger, v ic e p resid en t; R. E. P o m e r o y , v ic e p resid en t; J. M. W ils o n , ca sh ier, and M iss E u n ic e J o h n s o n , as sista n t ca sh ier. M r. L ee su cce e d s H e r b e r t W . S m ith o f S leep y E y e, w h o s e d ea th o c c u r r e d a fter th e first o f th e yea r. Resigns Ja m es J. M ach has r e sig n e d as as sista n t ca sh ie r o f th e State B a n k o f N e w P ra g u e, M in n esota . M r. M a ch h a d b e e n w ith th e b a n k sin ce 1932. H e w a s e m p lo y e d w ith th e F irs t N a tion a l B a n k fo r a tim e p r io r to h is jo in in g th e State B a n k staff. At Jackson S. B. E r ic k s o n , fo r m e r M in n esota b a n k e r w h o r e tire d fr o m th e p r e s i d e n c y o f th e B lu e E a rth B an k , has a cce p te d a p o s itio n w ith th e F ir s t N a tio n a l B a n k at J a ck son , M in n esota . Association Member M iss M on a M. C arson, assista n t ca sh ie r at th e U n io n N a tion a l B a n k o f R o ch e s te r, w a s r e c e n tly ele cte d in to th e m e m b e rs h ip o f th e A s s o c ia tio n o f B a n k AVomen. T h e a sso cia tio n w a s o rg a n iz e d in 1921 an d is th e o n ly o rg a n iz a tio n o f w o m e n b a n k e x e c u tiv e s in th e c o u n try . It h as a n a tion a l m e m b e rs h ip o f m o re th a n 1,000 w o m e n . T h e n a tion a l p re sid e n t o f th e a sso cia tio n th is y e a r is a M in n e a p o lis b a n k er, M iss M a rion M a ttson , assistan t Rochester T h re e officers o f th e U n io n N a tion a l B a n k o f R o ch e s te r, M in n esota , w e re p ro m o te d b y d ire cto rs. L y le J o h n s o n w a s n a m ed an a ssist ant ca sh ie r an d E. H . L u n d q u is t w a s a d v a n ce d fr o m ca sh ie r to v ic e p re s i dent, and H . G. H a lv o r s o n fr o m assist ant ca sh ie r to assistan t v ic e p resid en t. D. H. G rin a w a s p r o m o te d fr o m a ssist an t ca sh ie r to ca sh ier. O fficers re-elected are D r. C h risto p h er G rah am , ch a irm a n o f th e b oa rd ; O rva l U. H a b b ersta d , p resid en t; E . C. W e in h o ld , v ic e p resid en t, and M on a M. C arson, a ssista n t ca sh ier. O thers re n a m e d are R. W . C h a d w ick an d G. S. W ith e rs , v ic e p resid en ts, an d W . W . L a w le r, C. E. K n o w lto n an d T. H. J oh a n sen , d ire cto rs. Northwestern Banker, March, 1951 5'8 F O R th e s e co n d tim e in th e h is to r y o f the state b a n k in g d ep a rtm en t, d e p o sits in M in n e s o ta ’s 503 state b a n k s an d tru st co m p a n ie s h a v e e x ceeded $1,000,000,000, a c c o r d in g to K. (). Sattre, state b a n k in g c o m m is sion er. D ep osits in cre a se d $21,297,520 last y e a r to a tota l o f $1,000,158,236, M r. S attre said in h is r e p o r t fo r 1950. P r e d ic tin g a fu r th e r in cre a se in d ep osits, h e a lso said th at loa n s m a y b e e x p e cte d to s h o w a d o w n w a r d tre n d th is yea r. J * * * Clarence T. Olsen w a s fr o m ca sh ier ca sh ie r o f th e B a n k at th e b a n k ’s an nu al p r o m o te d to v ic e p re s id e n t and C olu m b ia H e ig h ts State M in n e a p o lis su b u rb a n m eetin g . Herbert S. Woodward, Jr., resea rch ch e m ist fo r th e M in n e a p o lis -H o n e y w e ll R e g u la to r C om p a n y , w a s e lected a n e w d ire cto r. R e -e le cte d w e r e Ar thur B. Gluek, p resid en t, and o th er officers an d d ire cto rs. * * * Robert A. Erickson has b e e n ele cte d assista n t ca sh ie r o f th e C h ica g o-L a k e State B a n k o f M in n ea p olis. M r. E r ic k son fo r m e r ly w a s m a n a g er o f th e in sta llm en t loan d e p a rtm e n t o f th e ban k. * * * Henry Rutledge, v ic e p re s id e n t o f the N o r th w e s te r n N a tion a l B a n k o f M in n ea p olis, w a s a m o n g n in e M in n ea p olis m en n o m in a te d fo r th ree-y ea r term s on the b o a r d o f d ir e c to r s o f the M in n e a p olis C h a m b er o f C om m erce. Established in Rio de Janeiro for over 30 years, and with other branches in Santos, Sao Paulo and Pernambuco (Recife), the Royal Bank knows Brazil, offers a fully informed service to banks and business firms interested in that country. Enquiries are invited. THE ROYAL BANK OF CANADA Head Office Montreal Over 740 branches in Canada, the West indies, Central and South America; New York, Lon don and Paris. Correspondents the world over. Assets exceed $2,497,000,000 Russell L. Stotesbery, p re sid e n t o f the M a rq u ette N a tion a l B a n k o f M in n ea p olis, r e c e n tly w a s ele cte d p r e s i d en t o f the M in n e a p o lis C lea rin g H ou se A s s o cia tio n . H e su cce e d s Joseph F. Ringland, p re s id e n t o f th e N o r th w e s t e rn N a tion a l B an k o f M in n ea p olis. Arnulf Ueland, p re sid e n t o f th e M id la n d N a tion a l B a n k o f M in n ea p olis, w a s n a m ed v ic e p resid en t, an d Joseph D. Husbands, v ic e p re s id e n t an d ca sh ier o f th e N o r th w e s te r n N a tio n a l B an k o f M in n ea p olis, w a s re -elected se c r e ta ry -trea su rer and m a n a g er. =i= * * Dr. Walter S. Warpeha w a s ele cte d v ic e p re s id e n t o f the T h ir te e n th A v e n u e State B a n k o f M in n e a p o lis at the an n u a l m e e tin g o f th e b a n k ’s b o a rd o f d ire cto rs. Dr. W a r p e h a s e r v e d as a d en ta l officer w ith the n a v y d u r in g W o r ld W a r II. H e w a s on e o f th e five m e n w h o o rg a n iz e d th e b a n k in 1947. * * Henry S. Kingman, p re sid e n t o f the F a rm e rs an d M e ch a n ics S a v in g s B an k o f M in n ea p olis, has b e e n a p p o in te d to th e b o a r d o f d ir e c to r s o f th e M a y o A s s o c ia tio n at R o c h e s te r , M in n esota . T h e a sso cia tio n h o ld s title to all assets o f th e M a y o C lin ic. * * * T h e Minnesota Bankers Association c o n d u c te d an ed u ca tio n a l c o n fe r e n c e fo r ju n io r b a n k officers an d staff m e m b e rs r e c e n tly in St. P aul. A m o n g sp ea k ers w e r e C a rroll A. G u n d erson , s e c r e ta r y o f th e cre d it p o lic y c o m m is s io n o f th e A m e rica n B a n k ers A s s o c ia tio n , an d L e R o y L e w is, e d u ca tio n a l d ir e c to r o f th e A m e r i ca n In stitu te o f B a n k in g , b o th o f N e w Y o rk . Clifford C. Sommer, v ic e p re sid e n t o f th e M id la n d N a tion a l B a n k o f M in n ea p olis, w a s in ch a rg e o f th e c o n fe re n ce . * * * E. Hornsby Wasson, v ic e p re s id e n t an d g e n e ra l m a n a g e r o f th e N o r th w e s te r n B e ll T e le p h o n e C o m p a n y o f M in n esota , h as b e e n ele cte d to the b o a r d o f d ir e c to r s o f the M id la n d N a tion a l B a n k o f M in n ea p olis. * * * Clarence Hill, ch a irm a n o f th e b o a rd Northwestern Banker, March, 1951 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Minnesota News 59 uf d ir e c to r s o f th e N o r th w e s te r n N a tio n a l B a n k o f M in n ea p olis, r e c e n tly w a s n a m ed tru stee o f th e fo u n d a tio n fo r the M in n e a p o lis area, B o y S cou ts o f A m e rica . * * * G. Sidney Houston o f th e F irst S e rv ice C o rp o ra tio n sp o k e o n “ In fla tio n an d W h a t Y o u C an D o A b o u t I t ” at a r e c e n t m e e tin g o f th e T w in C ities c o n tr o l o f th e C o n tr o lle r s In stitu te in St. Paul. * * A m o n g sp ea k ers at th e m id -w in ter c o n fe r e n c e o f th e S a v in g s an d L o a n L e a g u e o f M in n e so ta in M in n e a p o lis r e c e n tly w e r e K. O. Satire, M in n esota state b a n k in g co m m is s io n e r ; Robert J. Richardson, p re s id e n t o f th e F e d e ra l H o m e L o a n B a n k o f D es M oin es, and Maurice H. Strothman and George M. Rockwell o f th e F e d e r a l R e s e r v e B an k o f M in n ea p olis. * * * T h re e M in n e a p o lis b a n k e rs h a v e b een ele cte d to th e g o v e r n in g c o m m it tee o f th e M in n e a p o lis clu b . T h e y are John de Laittre, v ic e p r e s id e n t o f the F a rm e rs an d M e ch a n ics S a v in g s B a n k o f M in n ea p olis; Lyman E. AVakefield, Jr., assista n t v ic e p re s id e n t o f th e F ir s t N a tion a l B a n k o f M in n e a p o lis, and Goodrich Lowry, v ic e p r e s id e n t o f th e N o r th w e s te r n N a tion a l B a n k o f M in n ea p olis. * * * L a st y e a r w a s on e o f th e m o s t a ctiv e in th e h is to r y o f th e First National Bank o f M in n ea p olis, Arthur H. Quay, p resid en t, r e p o r te d at th e an n u al m e e tin g o f sto c k h o ld e r s . N et o p e r a tin g ea rn in g s o f $2,070,500 re fle cte d th e e x p a n d e d loa n v o lu m e an d a d d ition a l b u sin ess, h e said. L o a n s tota led $130,764,079 at th e en d o f th e y ea r, an in cre a se o f $26,063,952 fr o m D e c e m b e r 31, 1949. F u r th e r in d ic a tio n s o f th e a ctiv e y ea r, M r. Q u ay said, w e r e th e b a n k ’s d ep osits, w h ic h g a in e d n e a r ly $36,000,000 to re a ch a tota l o f $376,551,066. * * * Two M in n e a p o lis b a n k e rs w ere n a m ed to e x e c u tiv e p o s itio n s at th e an n u a l e le c tio n o f th e Southside Busi ness Men’s Association o f M in n ea p olis. Arnold Olson, a ssista n t ca s h ie r o f the F o u r t h N o r th w e s te r n N a tion a l B a n k o f M in n ea p olis, w a s n a m ed p resid en t, TODAY MoreThan Any Day: Your Income Is a Vital Necessity W e specialize in writing insurance which will provide you income if you are sick or disabled by accident. Low Rates for Bankers MINNESOTA COMMERCIAL MEN'S ASSOCIATION PAUL CLEMENT, Secy, and Genl. Mgr. 2550 Pillsbury Avenue Minneapolis 4, Minnesota Minnesota Commercial Men's Association 2550 Pillsbury Avenue Minneapolis 4, Minnesota C. J. (Chuck) R IE G E R Investment Securities JAMIESON & COMPANY Please send me complete information on your Income Protection Plan. Members New York Stock Exchange NAME .................................................................................................................... 1225 FIRST NAT'L-SOO LINE BLDG. A TLA N TIC 8235 M IN N EA PO LIS. MINNESOTA ADDRESS ............................................................................................................. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis C ity State Northwestern Banker, March, 7951 60 Minnesota News an d F. O. Glasoe o f the sam e b a n k w a s ele cte d a b o a rd m em b er. =1= * * A $50,000 e x p a n s io n p r o g r a m w as la u n ch e d r e c e n tly at th e American National Bank o f St. P aul, a c c o r d in g to an a n n o u n ce m e n t b y R. O. Bishop, p resid en t. M ore th a n 2,000 sq u a re fe e t o f floor sp a ce w ill b e a d d ed to th e s e c o n d and th ird floors. C o n d itio n s p erm ittin g , a d d itio n a l im p r o v e m e n ts w ill b e added, M r. B ish o p said. T h e b a n k in sta lled an e sca la tor a fe w m o n th s ago. * * * Richard Stebbins, a d v e rtis in g m a n ager of th e Northwestern National Bank o f M in n ea p olis, has b e e n ele cte d p re sid e n t o f th e T w in C ities F in a n cia l P u b lic R e la tio n s A s s o cia tio n . Ralph Spearing, assista n t ca sh ie r at M id la n d N a tion a l B a n k o f M in n ea p olis, w a s n a m ed secreta ry -trea su rer. T h e org a n iza tio n , c o m p o s e d o f 80 re p re se n ta tiv e s o f T w in C ities b a n k s an d sa v in g s and loa n a ssocia tion s, is a b ra n ch o f th e n a tion a l org a n iza tion . T h e n a tion a l F P R A m id -y ea r c o n fe r en ce w ill be h eld in M in n e a p o lis M a rch 22 u n d e r sp o n s o r s h ip o f the lo ca l g rou p . * * * T h e First Robbinsdale State Bank o p e n e d fo r b u sin e ss r e c e n tly in its n e w b u ild in g at 4180 W . B r o a d w a y in th e M in n e a p o lis su b u rb . A n op e n h ou s e w a s h eld fo r cu s to m e r s and frien d s. T h e ba n k , affiliated w ith th e F ir s t N a tion a l B a n k o f M in n e a p o lis and F ir s t B a n k S to ck C orp o ra tio n , has b een s e r v in g R o b b in s d a le and n e a rb y n o r th M in n ea p olis an d ru ra l H e n n e p in c o u n t y c o m m u n itie s sin ce 1918. Joseph W. Roche is p resid en t. Ben S. Woodworth, a ssista n t ca sh ier o f th e First National Bank o f M in n e a polis, has b e e n e le c te d p r e s id e n t o f th e b o a rd o f d ir e c to r s o f th e Minne apolis Athenaeum, th e c it y ’s old e st lib ra ry . * * * L e o A Erlon, a ssocia te p r o fe s s o r o f e c o n o m ic s at St. T h o m a s C olleg e, St. P aul, has a cce p te d a p o s itio n w ith th e First National Bank of St. Paul as sp e cia l re p re s e n ta tiv e in th e d e p a rt m e n t o f b a n k s an d b a n k ers, W . L . Boss, a v ic e p resid en t, a n n o u n c e d re c e n tly . M r. E r lo n has b e e n a ctiv e in th e ce n tra l b a n k in g s e m in a r c o n d u cte d b y the F e d e ra l R e s e r v e B a n k o f M in n ea p olis. * * * Donald L. Smith, a ssocia ted w ith th e First National Bank of St. Paul, has b e e n a p p o in te d a v ic e p r e s id e n t o f th e M in n esota J u n io r C h a m b er o f C o m m e rce . M r. S m ith is a fo r m e r v ic e p r e s id e n t an d d ir e c to r o f th e St. P a u l JCC. * * * D ire cto rs and officers o f th e First Stock Corporation w e r e r e e le cte d at th e a n n u a l m e e tin g o f s to c k h o ld e rs in M in n ea p olis. D ire cto rs are Samuel P. Adams, Bank CET CORN CLEANER! 4 L ; LONGER PIC K IN G R OLLS MORE FULL LEN G T H HUSKIN G ROLLS CLEANER PICKED CORN IN THE CRIB . . . I N A SHORTER TIME H u s k u p t o 2 5 a cre s o f c o r n a d a y w it h M M 2 -r o w H u s k o r , u p t o 1 3 a c r e s w it h a n M M 1 -r o w . B o t h m o d e ls a re s m o o t h r u n n in g , e a s y p u llin g m a c h in e s d e s ig n e d t o p r a c t ic a lly e lim in a te s h e llin g in th e fie ld . M M flo a tin g s n o u t s a n d g a th e r in g c h a in s h a n d le e v e n b a d ly t a n g le d c o r n . E x c lu s iv e c le a n in g fa n r e m o v e s th e fe w r e m a in in g lo o s e h u s k s a n d d ir t a t w a g o n e le v a t o r . A l l c o r n p ic k e rs m a y h a v e s o m e t h in g s in c o m m o n , b u t M M ’s lo n g e x p e rie n c e a n d s k ille d c r a fts m a n s h ip in m a k in g t o p q u a lit y p a r ts fo r its H u s k o r s , p e r m it t h e m t o g iv e t h e u n u s u a lly lo n g , d e p e n d a b le p e r fo r m a n c e fo r w h ic h t h e y a re n o t e d . Quality control in MM factories gives you longer, better performance in the field. See us for complete facts. INNEAPOLIS-IYIOLINE MINNEAPOLIS Northwestern Banker, March, 1951 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1, M I N N E S O T A Julian B. Baird, Russel H. Bennett, Daniel F. Bull, Francis D. Butler, Charles F. Codere, Joseph H. Colman, Horace H. Corey, Paul V. Eames, Roy H. Glover, George W. P. Heffelfinger, Louis W. Hill, Jr., Clive T. Jaffray, Ellwood O. Jenkins, Charles O. Kal man, Augustus H. Kennedy, Richard C. Lilly, Samuel Mairs, Ignatius A. O’Shaughnessy, Philip L. Ray, Elmer H. Sexauer, Alfred E. Wilson a n d Ed gar F. Zelle. O fficers are Mr. Kennedy, ch a irm a n o f th e b o a r d o f d ir e c to r s ; Mr. Jenkins, p resid en t; Mr. Baird an d Arthur H. Quay, v ic e p re sid e n ts; Hugh W, Mar tin, trea su rer; Lawrence B. Hogue, s e cre ta ry ; Leonard O. Fredell, assistan d se cre ta ry , an d Andrew R. Moor head, a ssista n t trea su rer. A p p r o x im a te ly 400 s to c k h o ld e r s and g u ests o f th e c o r p o r a tio n a tten d ed th e m eetin g . O f th e 2,831,188 sh a res o f th e c o r p o r a tio n ’s s to c k ou tsta n d in g , 2,291,464, o r 81 p e r cen t, w e r e re p re s e n te d at th e m e e tin g in p e r s o n o r b y p r o x y . * * * Goodrich Lowry, v ic e p r e s id e n t of Northwestern National Bank of Minneapolis, has b e e n re -elected s e c r e the ta ry o f th e M in n e a p o lis C lub. * * * D ep osits o f th e Northwestern Na tional Bank o f M in n e a p o lis in cre a se d a lm o st $34,000,000 la st y e a r to a y ea ren d tota l o f $387,988,888, Joseph F. Ringland, p resid en t, re p o r te d r e c e n t ly. H e a lso to ld th e b o a rd o f d ir e c to r s th a t 1950 w a s on e o f th e b e s t y e a r s Minnesota News fo r n et b a n k e a rn in g s in th e h is to r y o f th e in stitu tion . * * * E le c tio n o f a n e w officer and p r o m o tio n o f th re e o th ers b y th e b o a r d o f d ir e c to r s w e r e a n n o u n ce d r e c e n tly b y .1. Cameron Thomson, p re s id e n t o f the N o r th w e s t B a n c o r p o r a tio n . Curtis A. Lovre, w h o jo in e d the c o n tra ct d e p a rtm e n t a y e a r ago, w a s e le cte d a ssista n t v ic e p resid en t. H. Raymond Horn, c h ie f ex a m in er, w a s n a m e d v ic e p r e s id e n t a n d c h ie f e x am in er. Richard L. Federman, c o m p tr o lle r a n d se cre ta ry , w a s ele cte d v ic e p r e s i d en t, c o m p tr o lle r an d s e cre ta ry , and William H. Netland, assista n t v ic e p resid en t, w a s p r o m o te d to v ic e p r e s i den t. A ls o a n n o u n c e d b y M r. T h o m s o n w a s d e sig n a tio n o f Eugene J. MoNeely o f O m aha fo r e le c tio n as a B a n c o d ir e c to r at th e a n n u a l m e e tin g o f s to c k h o ld e r s in M arch . E le c tio n o f M r. M cN e e ly , p re sid e n t o f th e N o r th w e s t B ell T e le p h o n e C om p a n y , w o u ld fill a v a c a n c y cre a te d b y th e d eath o f Edgar M. Morsman, Jr. M r. M c N e e ly is a d ir e c to r o f the U n ited S tates N a tion a l B a n k o f O m a ha, a B a n co affiliate. * * * Milton W. Gribbs, p r e s id e n t o f G riggs, C o o p e r & C o m p a n y o f St. P aul, has b e e n e le cte d a m e m b e r o f the b o a r d o f d ir e c to r s o f th e S oo L in e R a ilro a d . M r. G rig g s a lso is a d ir e c to r o f th e First National Bank of St. Paul an d o f th e First Security State ----------------------★ ★ ★ 61 ---------------------- MONOPOLIZE—THEN SOCIALIZE The above s t a t e m e n t is s u p p o r t e d by h is t o r y . The g re a te st d e fe n s e o f p r iv a t e b a n k in g is t h e n u m e r o u s in d e p e n d e n t b a n k s , h o m e -o w n e d , h o m e -m a n a g e d , I n d e p e n d e n t b a n k in g has th a t p la y e d e x is t th ro u gh o u t th e la n d . its f u l l p a r t in t h e d e v e l o p m e n t o f t h is t r e m e n d o u s c o u n t r y . I t is in th e p u b lic in te r e s t to se e t h a t o u r o ld s y s te m o f h a n k i n g s u r v iv e s , b u t to s u r v iv e , in d e p e n d e n t b a n k e rs m u st r a lly in m a k e t h e ir e ffo r ts e f fe c t u a l, t h e r e t h e ir ow n is n e e d of d e fe n s e an and to In d e p e n d en t B a n k e r s A s s o c ia t io n . THE INDEPENDENT BANKERS ASSOCIATION w il l h o l d its c o n v e n t io n 9 t li a n d 1 0 th . t h is year at M o b ile , A la b a m a , A p r il A c o n s t r u c t iv e p r o g r a m m u s t b e w o r k e d o u t a n d t h e m o r e h a n k e r s t h a t le n d t h e ir j u d g m e n t , t h e ir id e a s to th e c o n v e n t io n , th e b e tte r w ill be th e program p e n d e n t h a n k in g is fa c e d w it h g r a v e issu e s. a d o p te d . In d e T h e s e a re c o n f u s in g t im e s — it is w e ll f o r i n d e p e n d e n t b a n k e r s to c o u n s e l t o g e t h e r . T h e c o n v e n t io n is t h e p r o p e r p la c e . MOBILE, ALABAMA, APRIL 9th and 10th Bank of St. Paul. * * * E le c tio n o f Robert S. Branham and Arnold Prill as a ssista n t ca sh ie rs o f th e Stock Yards National Bank of South St. Paul w a s a n n o u n c e d r e c e n t ly b y R. Lloyd Smith, p resid en t. A ls o a n n o u n c e d w a s a p p o in tm e n t o f Lester S. Curran, fo r m e r ly o f F lo y d , Io w a , as a g ricu ltu ra l a g en t fo r the ba n k . T h e b a n k has ju m p e d 104 p la ces sin c e D e ce m b e r 31, 1948, in th e a n n u al lis tin g o f U n ited S tates c o m m e r c ia l b a n k s, an d at th e en d o f 1950 w a s 809th in size. D e p o sits as o f th at tim e tota led $21,436,102. >1= * * Otto Bremer, ch a irm a n o f th e b o a rd of d ir e c to r s o f th e American National Bank o f St. P aul, d ied in St. P a u l re- https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Charles C. R ieger, T r e a s u r e r Minneapolis, Minnesota C. R. Bell, P r e s i d e n t Anniston, Alabama Guy Sturgeon, V i c e Sheridan, W yoming P r e sid e n t '★ m ^ ★ ' FIRST BANK Ba n k New Y o r k --64 Wall Street 4 ★ C O A S T -T O -C O A S T WBA N K" rap Ben DuBois, S e c r e t a r y Sauk Centre, Minnesota 550 or M Chicago- - ontreal 27 S LaSalle Street Salt Francisco • -333 California Street (panadei •Resources Exceed $2 Billion Northwestern Banker, March, 1951 62 Minnesota News c e n tly a fter a lo n g illn ess. H e w a s 83 y e a rs old. A t th e tim e o f th e first R o o s e v e lt in a u g u ra tio n M r. B re m e r o w n e d all or p r a c tic a lly all o f th e s to c k o f 42 b a n k s lo ca te d fo r th e m o s t p a rt in N o rth D ak ota, M on ta n a and M in n esota . In ad d ition , he h a d la rg e h o ld in g s in the Chase National Bank o f N e w Y o rk , th e Manufacturers Trust Company o f N e w Y o r k , th e Marine Trust Company o f B u ffalo, th e Continental Illinois Bank and Trust Company o f C h ica g o, th e Northern Trust Company o f C h i ca g o, an d th e Harriman National Bank o f N e w Y o rk . 5L BANK Little Falls B a n k d eb its fo r L ittle F a lls, M in n e sota, c o n tin u e d o n th e u p s w in g d u r in g th e e a r ly p a rt o f th is y ea r, a c c o r d in g to th e r e p o r t issu ed b y th e N in th F e d e ra l R e s e r v e D istrict. J a n u a ry o f 1951 fo u n d b a n k d eb its to ta lin g $3,585,000, co m p a r e d to $2,739,000 fo r th e sam e m o n th in 1950. T h e fig u res re v e a l th e J a n u a ry in crea se w a s 131 p er ce n t o f th e tota l a y e a r ago. Leonard Anderson L eon ard A n d e r s o n , 43, assista n t ca sh ie r o f th e W h ite R o c k , M in n esota , at the YARDS Our Problems Are Mutual CARL L. FREDRICKSEN President MARK A. WILSON Senior Vice President CLIFFORD L. ADAMS Vice President WILLIAM C. SCHENK Vice President JOHN S. HAVER Cashier STANLEY W. EVANS Asst. Vice President TAMES L. SMITH Asst. Cashier and Auditor This 56-year old bank, in the heart of the Sioux City stock yards, has developed facilities to handle all your items in Sioux City. Whether it is a live stock, grain, hay or com mercial. item, this bank is exception ally qualified to act as your corre spondent here. We welcome every opportunity to discuss mutual problems with you, and we invite your account to this bank. KINLEY W. SMITH Asst. Cashier State B an k , d ied u n e x p e c t e d ly s h o r tly a fte r h e h ad re tu r n e d h o m e fr o m h is w ork . B o rn in B elle C reek to w n s h ip on D e ce m b e r 3, 1907, h e h a d a lw a y s liv e d in th e W h ite R o c k c o m m u n ity . F o r th e p ast 14 y e a r s h e h ad b e e n e m p lo y e d at th e W h ite R o c k ban k . Becomes President A t th e a n n u a l m e e tin g o f th e d ir e c tors o f th e F a rm e rs an d M erch a n ts State B a n k o f C ook, M in n esota , G. J. F ra n cis, ca s h ie r fo r th e p a st 33 y ea rs, w a s ele cte d p re s id e n t o f th e b a n k to s u cce e d th e late F r e d A n d e r s o n . B art A n d e rs o n , fo r m e r a ssista n t ca sh ier, w a s n a m ed ca s h ie r an d J o h n E d b lo m w a s e le cte d v ic e p re sid e n t. D ire cto rs ch o s e n w e r e J o h n A u n e , A d o lp h J o h n son, G. J. F ra n cis, G e o rg e R. F r a n c is an d J o h n E d b lo m . Mankâto N eal J. R y a n w a s n a m ed ca sh ie r and D on E. H e llin g a ssista n t ca sh ie r o f th e N a tion a l B a n k o f C o m m e rce , M an ka to, M in n esota . O fficers a n d d ir e c to r s o f th e fo u r M a n k a to b a n k s o th e r w is e re m a in e d u n ch a n g e d a fte r th e a n n u a l ele ctio n s. M r. R y a n w a s m o v e d u p fr o m a ssist ant ca sh ie r to ca sh ier, w ith R. A . C h ristia n son , fo r m e r ly v ic e p re s id e n t an d ca sh ier, n a m ed v ic e p resid en t. M r. H e llin g w a s a fo r m e r teller. Retires E d N. E b ert, 73, v ic e p re s id e n t o f th e S e c u r ity State B a n k in B e m id ji, M in n esota , re tir e d re c e n tly , a fte r b e in g a ssocia ted w ith th e b a n k fo r 30 y ea rs. M r. E h e r t en te re d th e e m p lo y m e n t o f th e S e c u r ity State B a n k as g e n e ra l b o o k k e e p e r a n d teller, la ter h o ld in g offices as v ic e p re s id e n t and d ire cto r. Winona Changes 4 SIOUX CITY MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION Northwestern Banker, March, 1951 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D ire cto rs w e r e re-elected and th ree p r o m o tio n s w e r e a n n o u n c e d a m o n g officers o f th e W in o n a , M in n esota , N a tion a l an d S a v in g s B a n k at th e a n n u a l s to c k h o ld e r s ’ m eetin g . E. W . M iller w a s a d v a n ce d fr o m as sista n t v ic e p re s id e n t to v ic e p re s id e n t and W. M. L a m b e r t fr o m assista n t ca sh ie r to ca sh ier. J u d so n S cott w a s e le cte d an assista n t ca sh ier. A ll o th e r officers w e r e re-elected . T h e y are: E. L. K in g , Jr., ch a irm a n o f th e b oa rd ; S. J. K r y z s k o , p re sid e n t an d s e n io r tru st officer; J o h n A m b rosen , v ic e p resid en t, and W . P. T h e u re r, assista n t ca sh ie r an d tru st officer. D u rin g th e p ast y e a r M r. A m b r o s e n h as h eld th e title o f ca sh ier in a d d ition to h is title as v ic e p r e s i dent. 63 South Dakota NEW S L. A. HOLLENBECK President Iroquois South Dakota Banks Sponsor Radio Program A n in n o v a tio n in b a n k e r s p o n s o r sh ip to o k p la ce e a r ly th is m o n th w h e n th e S ou th D a k ota B a n k ers A s s o c ia tio n s p o n s o r e d th e p la y b y p la y ra d io b ro a d ca st o f th e S ou th D a k ota State “ B ” B a sk etb a ll T o u r n a m e n t at th e M itch e ll C orn P a la ce in M itch e ll o n M a rch 8th, 9th a n d 10th. T h e b r o a d ca st w e n t o u t o v e r s ix sta tion s, in c lu d in g S io u x F a lls, M itch ell, H u ron , A b e r d e e n an d W a te r to w n . CARL E. BAHM EIER, JR. Secretary * Huron Sell Interest A. T. H a gen , p re s id e n t o f th e F ir s t State B a n k o f C la rem on t, S ou th D a kota, an d H. W . E n g e r, v ic e p resid en t, h a v e so ld th e ir in te re sts in th e b a n k to E. J. S toh r, ca sh ier, and five C lare m o n t resid en ts. P u rch a se rs in clu d e P a u l F re d e n , R o b e r t S ch m u ller, E. O. B a rn es, J. A . A k e r s o n an d H o w a rd C utler. Mitchell T h e officers an d b o a rd m e m b e rs o f th e C o m m e rcia l T ru s t & S a v in g s B ank, T h e th e m e o f th e b ro a d ca s t w a s th at M itch ell, w e r e re-elected at th e b a n k ’s it w a s s p o n s o r e d b y “ Y o u r L o c a l a n n u a l m eetin g . B a n k .” S h ort s p o t a n n o u n ce m e n ts T h e officers are H . R. K ib b e e , p r e s i c o n c e r n in g g e n e ra l s e r v ic e s o f b a n k s d en t; J. W . B ry a n t, v ic e p re sid e n t; a n d th e a d v a n ta g es o f p a tr o n iz in g p r i E . A . L o o m e r , v ic e p re s id e n t an d tru st v a te b a n k in g in stitu tio n s w e r e fe a officer; G. W . T o ft, ca sh ie r a n d a ssist tu red. a n t tru st officer, a n d H . W . F re d in e , C arl B a h m eier, Jr., e x e c u tiv e s e c r e assista n t ca sh ier. ta r y o f th e S ou th D a k ota B a n k e rs T h e b o a rd o f d ir e c to r s in clu d e s M r. A s s o c ia tio n , says th at to h is k n o w le d g e K ib b ee, M r. B ry a n t, M r. L o o m e r , M rs. th is w a s th e first tim e a n y b a n k e rs M a ry K ib b e e K e lle y , M rs. C ora B. W ilt, a s s o cia tio n h as s p o n s o r e d a p r o g r a m M r. T o ft and M r. F re d in e . o f th is typ e. A t th e a n n u a l m e e tin g o f th e s to c k h o ld e rs o f th e F a rm e rs State B ank, Rapid City Change W e im e r, th e fo llo w in g officers w e r e T h e F ir s t N a tion a l B a n k o f th e e lected : B la ck H ills at R a p id C ity, S o u th D a C. J. A b b o tt, p re s id e n t; L e R o y A b k ota, has a n n o u n c e d th e e le c tio n o f b ott, e x e c u tiv e v ic e p re sid e n t; C. L. R o b e r t E. D r is c o ll as ch a irm a n o f th e F r e s c o ln , v ic e p re s id e n t; H e n r y R e y b o a rd a n d J o h n M. R y a n as p re sid e n t n old s, v ic e p re s id e n t an d ca sh ier; M a ry o f th e in stitu tion . C h iv ers, assista n t ca sh ier, an d J a ck W . R a h n , a ssista n t ca sh ier. D ir e c to r s re-elected in clu d e d C. J. Winter Vacation E. M. D ean , p re s id e n t o f th e F a r m A b b o tt, L e R o y A b b o tt, W m . L y n a ss, C. L. F e s c o ln an d H e n r y R e y n o ld s . ers S tate B a n k o f C an ton , S ou th D a kota , and on e o f th e d ir e c to r s o f th e b a n k , A . W . B a u m a n n , re tu r n e d r e c e n tly fr o m a v a c a tio n in C a lifo rn ia an d a trip th r o u g h s e v e r a l o th e r so u th e r n states. Dupree R e c e n t ch a n g e s in th e officia l staff o f th e F a r m e r s State B a n k o f D u p ree, S ou th D ak ota, re s u lte d in e le c tio n s as fo llo w s : E d w a r d T o w e , p re s id e n t; O. S. N ygaard, v ic e p re s id e n t; R . C. B irk ela n d , ca sh ier, an d A r le n e T h om a s, assista n t ca sh ier. C a pita l s to c k o f th e in s titu tio n is n o w $30,000, su rp lu s $25,000 an d u n d i v id e d p ro fits $11,500. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A tte n d in g the d in n e r and p a y in g trib u te to M r. C in k le fo r h is lo n g s e r v ic e w a s E. O. Jenkins, p re sid e n t o f th e F ir s t B a n k S tock C o rp o ra tio n o f M in n ea p olis. O thers in a tten d a n ce i n c l u d e d S io u x F a ils N ew s D O U B L E s ilv e r a n n iv e r s a r y w a s o b s e r v e d b y officials an d e m p lo y e s o f the National Bank of South Dakota at a b a n q u et. T h e o c c a s io n m a rk e d the 25th a n n iv e r s a r y o f the b a n k ’s fo u n d in g as th e C itizen s N a tio n a l B a n k in 1926. It a lso m a rk e d th e 25th y e a r o f s e r v ic e to th e o r g a n i za tio n b y Frank J. Cinkle, n o w v ic e p resid en t. President Tom S. Harkison r e ca lle d th at M r. C in k le b e g a n w o r k in g as a teller an d b o o k k e e p e r w h e n th e b a n k w a s started. M r. C in k le w a s p re se n te d w ith a set o f m a tch e d lu g g a g e as a m em en to. A F R A N K J. C IN K L E 25th anniversary George S. Henry, v ic e p r e s id e n t o f the F ir s t N a tion a l B a n k o f M in n e a p olis; W. L. Boss, v ic e p re s id e n t o f th e F ir s t N a tion a l B a n k o f St. P aul, d ir e c tors o f th e S io u x F a lls a d v is o r y c o m m ittee o f its sou th b r a n c h and officers fr o m H u ro n , V e r m illio n an d S iou x F alls. A n o p tim is tic f e e l i n g p r e v a ile d a m o n g M in n esota b a n k e rs w h o m he r e c e n tly a d d ressed in St. P aul, Tony Westra, a g ricu ltu ra l re p re s e n ta tiv e o f th e N o r th w e s t S e cu rity N a tion a l B ank, re p o r te d o n h is re tu rn to S io u x F alls. M r. W e s tr a sp o k e to th e b a n k e rs on a g ricu ltu ra l len d in g . * * * P. H. McDowell, fo r m e r v ic e p re s i d en t o f th e N o r th w e s t S e c u r ity N a tio n a l B ank, h as b e e n ele cte d a m e m b er o f the b o a rd o f d ire cto rs o f N o r th ern S tates P o w e r C om p a n y . The b o a r d ’s m e m b e r s h ip w a s in cre a s e d to 11. M r. M c D o w e ll’s e le ctio n b r o u g h t to th e b o a r d r e p re se n ta tio n fr o m S ou th D akota. * * * U n ited in m a rria g e in San D ieg o, C a liforn ia , w e r e Miss Lavern Knox, d a u g h ter o f M r. an d M rs. V e r n o n R. K n o x , C an istota, S ou th D ak ota, and William M. Perrenoud, USNR, s o n o f M r. an d M rs. W . E. P e rre n o u d . The g r o o m ’s fa th e r is ca sh ie r o f th e First National Bank & Trust Company. P a ren ts o f th e b r id e an d b r id e g r o o m tra v e le d w e s t fo r th e ce r e m o n y . * * * N. W. Wilson, a ssistan t ca sh ie r o f Northwestern Banker, March, 7951 64 South Dakota News ca sh ie r o f th e U n ion S a v in g s B ank, w a s a m o n g 12 n o r th w e s t b a n k e rs w h o a tten d ed a sh o rt c o u r s e in cen tra l b a n k in g at the F e d e ra l R e s e r v e B a n k o f M in n ea p olis. * * * Elmer G. Miller, fo r m e r ly o f In d ia n ap olis, In dian a, has jo in e d th e staff o f th e N a tion a l B a n k o f S ou th D ak ota as h ead o f its T im e p a y d ep a rtm en t. H e has h ad o v e r 19 y e a rs o f cre d it e x p e r ie n c e in d ea ler fin a n cin g an d c o n su m er loan s. A g ra d u a te o f th e In d i ana U n iv e r s ity S c h o o l o f C om m erce, M r. M iller s e rv e d as b r a n c h m a n a g er fo r th e C o m m e rcia l C red it C o rp o ra tio n at G a ry and In d ia n a p o lis an d at C o lu m b u s, Ohio, and as d iv isio n a l m a n a ger fo r th e state o f In dian a. * * * Frank J. Cinkle, v ic e p re sid e n t o f th e N a tion a l B a n k o f S ou th D akota, is ch a irm a n o f th e fin a n ce co m m itte e fo r th e C o s m o p o lita n C lu b ’s 22nd a n n u al in d u stria l e x h ib it an d fo o d s h o w to b e h eld A p r il 10th to 14th. E le c tio n o f officers at th e an nu al m e e tin g o f th e S io u x F a lls C lea rin g H ou se A s s o c ia tio n n a m ed William C. Duffy, p re s id e n t o f the U n ion S a v in g s B ank, p resid en t; Ross E. Hunt, v ic e p re sid e n t o f the N a tion a l B an k o f the U n ion S a v in g s B ank, w a s g e n e ra l ch a irm a n fo r th e o b s e r v a n c e o f N a tion a l C rim e P r e v e n tio n W e e k , F e b r u a ry 18th-24th. L ocal observan ce w a s s p o n s o r e d b y th e C o sm o p o lita n C lub. * * Gerald L. Hill, v ic e p re sid e n t and S ou th D akota, v ic e p re sid e n t; John S. Hinman, ca sh ie r o f th e N o rth w e s t S e cu rity N a tion a l m an a ger. * :(s B ah k , secre ta ry - * Alton F. Junge ca m e fr o m M in n e a p olis to b e c o m e v ice a d ir e c to r o f th e First & Trust Company. It th at e x p a n s io n o f th e p r e s id e n t an d National Bank w a s e x p la in e d b a n k ’s official In v e sto rs M u tu a l Prospectus on request from Principal Underwriter A L T O N F. “ A L ” JU N G E New vi^e pr s.d-iu in oioux Falls INVESTORS D IV E R SIFIE D SERVICES ESTABLI SHED 1894 (as Investors Syndicate) MINNEAPOLIS, MINNESOTA THE IOWA GROUP IOWA MUTUAL INSURANCE COMPANY Since 1 9 0 0 IOWA MUTUAL CASUALTY COMPANY D eW itt, Iowa staff w a s o c c a s io n e d b y an in cre a se in b u sin ess h a n d led b y th e in stitu tion . M r. J u n g e is a fo r m e r assista n t c a s h ier o f th e N o r th w e s te r n N a tion a l B an k o f M in n ea p olis. M r. J u n g e jo in e d th e N o r th w e s te r n N a tion a l B a n k in J u ly , 1941, as a m e m b e r o f its b o n d d ep a rtm en t. H e w a s tr a n s fe r r e d to the d e p a rtm e n t o f b a n k s and b a n k e rs in 1943 and w a s e le cte d assistan t ca sh ie r in 1945. W h ile w ith th e d ep a rtm en t o f b a n k s an d b a n k ers, h e r e p re se n te d and tra v e le d fo r N o r th w e s te r n N a tion a l in s o u th w e s te r n M in n esota , n o rth e rn Io w a an d S ou th D akota. Guest Speaker H a r r y D e v e re a u x , v ic e p re s id e n t o f th e R a p id C ity N a tion a l B a n k and p re sid e n t o f th e N a tion a l W o o lg r o w ers A s s o cia tio n , w a s g u e st sp e a k e r at a r e c e n t lu n c h e o n o f th e D e a d w o o d C h a m b er o f C om m erce. M r. D e v e r e a u x has r e c e n tly r e tu rn e d fr o m a v is it to A u stra lia and d iscu sse d v a rio u s a sp ects o f h is trip. BANK POSITIONS M ultiple Lines — Noil-Assessable Policies Agency Companies I For Qualified Men and Women, Beginners to Top Execu* fives. No Charge to Applicants. All Correspondence Confidential. W rite for Application. HENRY H BYERS. President BANKERS SERVICE CO., INC. BOX 1435 Northwestern Banker, March, 1951 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • DES MOINES 5 IOWA • TELEPHONE 2-7SOO 65 LaMoure N o rth D a k o ta NEWS 6 . A . KLEFSTAD President Forman Casselton Two new directors were added, upp ing the number from a three- to a fivemembership board of directors of the First State Bank, Casselton, at the annual meeting. Re-elected to the board were Joe Runck, president; F. C. Gokey of Minneapolis, vice presi dent, and W. E. Strehlow, Casselton, cashier. The two new board members are Miss Nadine Friend of Casselton and James Runck of Durbin. Jack Streh low of Casselton, who has been em ployed at the bank for the past year and a half, was elected to replace Miss Nadine Friend as assistant cashier. C. C . W ATTAM Secretary Fargo son, assistant cashier; A. E. Omdahl and L. A. McDonald, loan officers, and Donald Biggs, auditor. The First National Bank of Grand Forks has received authorization to increase its capital stock from $400,000 to $500,000 by payment of a 25 per cent stock dividend, Fred Orth, bank president, announced. Goose River Two new directors of the Goose River Bank were named at the annual meeting. Harvey N. Kaldor and Lester Parish were appointed to fill the vacancy of office held by the late C. G. Hanson and of Governor Norman Brunsdale. Ellendale Other directors of the institution are All officers of the First National Gilbert Elken, Jr., J. G. Kjos, K. S. Bank of Ellendale have been re-elected Groth, O. C. Stusrud and Gilbert Brudfor the ensuing year, the officers also vik. making up the board of directors. Officers of the bank are: O. C. Stus B. R. Crabtree heads the institution rud, president; G. Brudvik, vice presi as president; Frank G. Suttle, B. F. dent and cashier, and Alvin TollefsCrabtree and Donald Crabtree are vice rud, assistant cashier. presidents; W. S. Boom is cashier, and Mrs. L. M. Coleman is assistant cash Hatton ier. All officers were re-elected when stockholders of the Farmers and Mer Grand Forks chants National Bank held their an All 10 directors of the First National nual meeting. C. S. Anderson, H. M. Bank in Grand Forks were re-elected. Nash, E. M. Kent, J. O. Anderson, Al The directors then renamed all officers bert Bjertness and Elmer Osking were at the organizational meeting. named directors. Officers are Carl S. Dr. R. D. Campbell was renamed as Anderson, president; E. M. Kent, vice chairman of the board; Fred Orth, president; H. M. Nash, cashier, and president and general manager of the G. M. Olson, assistant cashier. bank; S. K. Roisum, vice president; Carther Jackson, vice president and Jamestown trust officer, and Edward L. Olson, Jamestown topped all other major cashier. Directors re-elected in addition to North Dakota cities in the rate of Dr. Campbell, Orth, Roisum and Jack- climb of its bank debits over that of son were: A. J. Mahowald, C. J. Mur the preceding year, figures released by phy, M. W. Murray, M. M. Oppegard, the Ninth Federal Reserve District reveal. F. C. Smith and W. R. Vanderhoef. Jamestown banks1 showed an in All directors of the Red River Na tional Bank of Grand Forks were re crease to 106 per cent. Williston was second with 105 per cent and Fargo elected at a recent meeting. The directors are: A. G. Bjerken, third with 104 per cent. Only three of the top 13 cities—Bis O. B. Burtness, John Hesketh, John L. Ryan, D. W. Westbee, Don E. Whit marck, Devils Lake, Dickinson, Fargo, Grafton, Grand Forks, Jamestown, man and W. H. Witherstine. Mr. Bjerken was re-elected presi Lisbon, Mandan, Minot, Valley City, dent and Mr. Westbee, vice president; Wahpeton and Williston—showed less L. W. Anderson is cashier; A. K. Simp than 100 per cent. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Directors of the First State Bank of LaMoure reviewed the 1950 operations of the institution Friday when they held their annual meeting and named officers. G. A. Klefstad of Forman was re elected president; H. M. Embertson, executive vice president, and A. H. Goehl and Roy Holand, vice presi dents. Jeanette Paulson is assistant cashier. Directors are Mr. Klefstad, M. J. Lere, Goehl Holand and Mr. Embert son. Larimore At the annual meeting of the stock holders of the Elk Valley State Bank, all directors, officers and employes were re-elected to serve for another year. The officers of the bank are: Hans Nielsen, president; J. Larimore, Jr., vice president; C. H. Erbele, cashier, and L. H. Brandon and Gladys Haugen, assistant cashiers. Gertrude Hanna, Verna Knudson, Mrs. Richard Gilderhus and Mrs. Dave Bommersbach complete the list of the employes. The Elk Valley State Bank is one of the few state banks in North Dakota which showed an increase in deposits over a year ago, which is a good sign of the prosperity of the entire commu nity. Milnor At the annual stockholders’ meeting of the First National Bank of Milnor, Anton Nelson was elected cashier, to succeed A. W. Eastman. Mr. Nelson has served as assistant cashier to Mr. Eastman for the past 11 years. How ard Leshovsky was named assistant cashier. Directors elected for 1951 were F. A. Mund, M. R. Smerud, Anton Nelson, J. A. Johnson and Palmer Enge. All members of this board were holdovers, with the exception of Mr. Enge. Officers for the year are: F. A. Mund, president; M. R. Smerud, vice president; Anton Nelson, cashier, and Howard Leshovsky, assistant cashier. Park River All directors of the First State Bank in Park River were re-elected. They are D. W. Westbee, Grand Forks; M. O. Johnson and Gordon Larson, Park River. At the directors’ meeting, held the same day, Mr. Westbee was named president; Mr. Johnson, vice president; Mr. Larson, cashier, and John D. Baker and Miss Iza Parke are assistant cash iers. Northwestern Banker, March, 1951 66 F O R 95 Y E A R S S O U N D B A N K I N G S E R V I C E Complete Correspondent Facilities SAFEKEEPING— Our vault facilities are exceptional—they, together with experienced personnel, assure the complete protection, efficient handling and, equally important, the immediate availability of your securities. SPECIAL SERVICE DEPARTMENT—Orders for purchase or sale of securities are placed immediately by telephone to principal markets. Prompt attention given to all collections. CASH ITEMS— All services available are used to expedite the presentation of your items— frequent messenger service to Federal Reserve Bank and Post Office assures you of the fastest service in this area. CORRESPONDENT BANK DIVISION— Representatives of this division will be pleased to assist you whenever possible. COOPERATION— The most important service we offer you as a correspondent is our complete cooperation in fulfilling your every banking need. Northwestern Banker, March, 1951 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 67 they raise and quite a few buy more corn to finish out their livestock. N e b ra sk a Farm Clinic N E W S CARL G. SW AN SON Secretary Omaha EA R L H. W ILKIN S President Geneva ing in spacious quarters in the base ment. Material and restrictions per mitting, the officers may do further remodeling and decorating. Nebraska Group Meetings D ATES and meeting places have been announced for the 1951 series of Group Meetings of the Nebraska Bankers Associa tion, as released by Carl Swan son, secretary. Leaving the Un ion Pacific station at Omaha at 8:35 a. m. on Monday, April 23rd, and returning to Omaha the eve ning of Friday, April 27th, the list reads as follows: Group 2—Columbus, April 23 Group 3— Norfolk, April 23 Group 5— Lexington, April 24 Group 6— Alliance, April 25 Group 4— Holdredge, April 26 Group 1—Lincoln, April 27 Farmers in the Hastings, Nebraska, area recently attended the annual farm clinic sponsored by the Hastings Na tional Bank. Two speakers were featured on the afternoon program, J. C. Adams of the experiment station at North Platte, who spoke on irrigated pastures, and Fred O’Hair, executive director of the Nebraska Conservation Foundation. Hog Feeding Hog feeding is definitely up in Cedar county, Nebraska, this year, according to V. E. Rossiter, cashier of the Bank of Hartington, who is in close touch with feeding operations. Many farmers, he said, have 100 to 150 hogs on feed where previously they have had but 50 to 75 or 100. Cattle feeding, Mr. Rossiter said, may be a bit above normal, but about the same as the recent average. He added that about half of the farmers in the county feed all the corn C o n t i n e n t a l N Walthill The First National Bank of Walthill, Nebraska, shareholders met recently to permit the filing of the will of the late J. B. Rossiter. The directors elected at the meeting were: W. W. Reed, George Busselman, Frances D. Keefe, Effie Rossiter, Paul H. Langenberg and Frances Ann Rossiter. Following the election of the board of directors the following officers were elected: George Busselman, president; Mrs. Effie S. Rossiter, vice president; Paul H. Langenberg, cashier, and Anita A. Miller, assistant cashier. a t i o n a l C h a n fle s Conservation Meeting Fred O’Hair, who is executive direc tor of the Nebraska Conservation Foundation, and Dr. M. D. Weldon, Extension Soils Specialist of the Uni versity of Nebraska, were the speak ers at a recent conservation meeting in Campbell, Nebraska. Farmers were asked to contact Don Hansen, cashier, Campbell State Bank, for reservations. In Columbus Bank Robert H. Kline has resigned as a trooper of the Nebraska highway pa trol to accept a position at the Central National Bank in Columbus. Remodeling The Franklin, Nebraska, State Bank is remodeling and rebuilding the base ment of their banking house. Officers of the bank decided on the basement remodeling in an attempt to alleviate the crowded teller and receiving departments. Posting equip ment and personnel will soon be work- C. W H E A T O N B A T T E Y President A t the annual meeting of the Continental National Bank, Lincoln, C. Wheaton Battey was named president, a promotion from his form er position of executive vice president. A t the same meeting, T. B. Strain, who had been president of the bank, was named chairman of the board of directors. tinental in 1929 as executive vice president. DttZ you know th a t th is com p an y h as specialized in B an k In su ran ce since 1 91 9 — th a t it h as th e inside view on B a n k In su ran ce p ro b lem s? T. B. ST R A IN Chairman of the Board C on su lt Scarborough & Company Insurance Counselors us fr e e ly a t an j tim e. F IR S T N A T IO N A L B A N K https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Mr. Strain came to Con B U I L D IN G • C H IC A G O 3, IL L IN O IS • STATE 2 4325 -s 1 Northwestern Banker, March, 1951 68 board of the Northwest Bancorporation of Minneapolis. * T HE Omaha National Bank, which last year increased its capital and surplus to $8,000,000, reported net earnings of $638,662 during 1950, com pared with net earnings of $522,720 during 1949. The figures were an nounced in the first annual report published in booklet form. The booklet outlined in detail to stockholders progress on the bank’s remodeling program. The project is the first major change in the bank building for 40 years. =K J. Francis McDermott, senior vice president of the First National Bank of Omaha, who underwent major sur gery in December, began returning to his office on a part-time basis early in February. After extended hospitali zation he had been convalescing at home. Fred W. Thomas, president of the First National Bank of Omaha, was elected a vestryman of Trinity Episco pal Cathedral of Omaha for a threeyear term at the annual parish meet ing recently. Denman Kountze, former Omaha banker, also was elected a vestryman for three years, as was A, W. Gordon, president of the Omaha Loan and Building Association. * * * Edgar M. Morsman, Jr., 77, promi nent Omaha attorney who was a direc tor of the United States National Bank of Omaha, the Stock Yards Na tional Bank of Omaha and the Omaha Loan and Building Association, died recently at his home of a heart attack. He also was attorney for the United States National Bank of Omaha. Mr. Morsman also served on the =t= * Net earnings of the Omaha Union Stock Yards Company and its subsid iary, the South Omaha Terminal Rail way Company, declined to $617,934 during 1950, Harry Coffee, president, told stockholders at their annual meet ing. That amount, or $5.49 a share, com pared with net earnings of 1949 of $686,366 or $6.10 a share. The company during 1950 paid $3.85 a share in dividends. The slump in income in 1950 was due to increased expenses in connec tion with the pension program, it was stated. It was stated that Federal, state and local taxes during the year exceeded income. Taxes totaled $705,776. * * * Carl A. Falk, vice president of Buf fett & Company, Omaha investment banking firm headed by Congressman Howard Buffett, has been elected vice president of the Omaha Council of Churches for 1951. He represents Kountze Memorial Lutheran Church. * * * Commenting on the Federal price and wage freeze, Omaha bankers ex pressed the opinion that “it had to come, but wthether the freeze regula tions will have enough teeth to be en forceable, only time will tell.” They thought the plan, in theory, appeared sound because it “tied wages and prices together.” A former banker was of the opinion that the wording of the control regu lations “opened the way for confu sion.” * * * Bank cele brated completion of its million-dollar remodeling project by holding open house on Lincoln’s birthday, February 12th, for patrons and friends. A feature was the display of one million dollars in a tightly-sealed plexi glass case. The pile of money was four and one-half feet high and in cluded 143,250 bills ranging from $1 to $100 in denomination. Ten thousand baby orchids were flown from Hawaii for the occasion. They were given to women visitors. Comic books and imitation money were given to children. The Omaha National BANKS a Bn 0dusGoH LS OVER 25 YEARS OF EFFICIENT CONFIDENTIAL. PERSONAL SERVICE A SK A N Y MID-WEST RESERVE CITY BANKER H EN RY H BYERS President BANKERS SERVICE CO., INC. BOX 1435 • DES MOINES 5 l<|)WA • TELEPHONEZ-7BOO Northwestern Banker, March, 1951 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis fi 9 V https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Stock Yards National Bank Omaha, Nebraska M EM BER O F FEDERAL D EPO SIT IN SU RA N C E C O R P O R A T IO N Northwestern Banker, March, 1951 70 Nebraska News O P E N H O U S E — L ast month, when the Omaha N ational Bank had completed its interior remodeling, the Bank held open house for its many customers and friends. The picture left above shows the $1,000,000 cash exhibit, and a part of the crowd that thronged the lobby. A t the right, above, is a “ fam ily group” at the preview party President W. B. Millard, Jr., of the bank said that 30,000 personal invita tions to the open house were sent to bank customers and friends. Visitors who entered the bank’s east lobby followed a tape-marked route which took them through most of the remodeled departments. For the first time many of the visit ors saw the huge vaults and inspected the new open cages for tellers. Bank officials and employes were at their desks to answer questions and dem onstrate equipment. Special displays included old coins dating back to 750 B.C.; counterfeit money, and bank records dating back to 1866, the year the Omaha National was founded. Rebuilding of the savings depart- held a day or two in advance of the public opening, for Omaha N ational Bank staff and their fam ilies. Beading clock-wise, starting with Dale Clark, chairman, at the lower le ft corner of the table, is M rs, V ictor B. Sm ith; M orris M iller, assistant cashier; M rs. W . B. M illard, Jr., W . B. M illard, Jr., president; M rs. Daniel Monen, and Daniel Monen, vice president o f the bank. ment began in March, 1948, and was completed the following July. Re modeling of the trust and estate de partment on the second floor was completed in August, 1949. * * * Sparked by heavy grain movements and booming retail trade, Omaha busi ness moved to higher ground in Janu ary. None of the 12 major business indicators showed minus signs. Bank debits and clearings reflected the increased business tempo which some business men called a second “scare buying” wave. Debits, or busi ness done by check, were up 46.5 per cent for the month, compared with January, 1950. Clearings showed a 47.4 per cent gain over a year ago. On jUincoln— ^JUe Continental— Headquarters for quick and efficient service in Lincoln It was, bankers agreed, the “biggest month we ever had.” January debits totaled $653,795,954, while the total for clearings was $745,062,966. * * * Miss Jessie Millard, who died last May 16th in Omaha at the age of 86, left an estate of $759,821.88. The state inheritance tax was fixed at $40,874.52. Miss Millard left no will. Her neph ew, W. B. Millard, Jr., president of the Omaha National Bank, is adminis trator of the estate. He and three other nephews each received $120,540. Miss Millard left $35,750 in Omaha real estate and $724,071 in personal property. An inventory showed she owned 11,658 shares of Omaha National Bank stock. It was reported to be worth a total of $629,532. * * * Richard H. Mallory, vice president of the United States National Bank of Omaha, has resigned from His Majesty’s Council of the Knights of Ak-Sar-Ben after 10 years of service. Appointed to succeed him on the council was Julius J. Alms, according to Ellsworth Moser, an Ak-Sar-Ben Governor. Mr. Moser is president of the United States National Bank. * * * Ray P. Hiffermann, 42, has been (ONTINENTAL RATIONAL Ba/ °r k L IN C O L N Member Federal Deposit Insurance Corporation Northwestern Banker, March, 195? https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis named manager of the Omaha office of Merrill, Lynch, Pierce, Fenner & Beane, stock brokers and investment banking firm. He succeeded Willard A. Johnson, who was called to duty with the Air Force, stationed at Ma con, Georgia. Mr. Hifferman has been in the brok erage business since 1926. After being Omaha manager for Cruttenden & Company, he joined Merrill-Lynch Nebraska when the Omaha office was opened last year. He served with an armored division in World War II. * * * The Buffalo County Feeders Asso ciation meeting was held recently at Kearney, Nebraska. A. J. Hallas, vice president of the Stock Yards National Bank, Omaha, and Hart Jorgensen, executive director of the Omaha Live stock Foundation, led a panel discus sion on livestock feeding and financ ing. At the February meeting of the Omaha AIB students heard an address on “Public Relations,” given by A. J. Hallas, vice president of the Stock Yards National Bank, Omaha. * * * Eugene J. McNeely of Omaha, presi dent of the Northwestern Bell Tele phone Company, was selected as a candidate for director of the North west Bancorporation of Minneapolis, for election at the annual stockholders’ meeting there this month. * * * John F. Davis, senior vice president of the First National Bank of Omaha, was re-elected treasurer of the Family Service of Omaha at the annual meet ing recently. Richard W. Walker of the Byron Reed Company was re elected president. * * * * * Kenneth G. Harvey, president of the Douglas County Bank of Omaha, has been elected to his fourth term as president of the Nebraska Chil dren’s Home Society, at the annual meeting in Omaha. 71 Fred W. Thomas, president of the First National Bank of Omaha, is treasurer of the society. Mr. and Mrs. Henry Karpf of Omaha recently entertained three groups from the Live Stock National Bank at din ner in their home. The first evening 36 women employes were present. The following week the young married men with their wives were guests, and on the last evening the single men. Henry C. Karpf is president of the Live Stock National Bank. Congress Chartered by 1890 FRIENDLY BANKING SIXTY-ONE YEARS OF LIVESTOCK SECURES KANSAS CITY’ S * * assistantcashier of Stock Yards National Bank, Omaha, and vice president of the Stock Yards 400 Club, advises their annual stag party will be held at the Castle Hotel, March 28th. The 400 Club includes those interested in Yard activities, an organization established to create good will in the country, and to promote closer relationship between t h o s e working together each day. Max Vance, * elected president of the Omaha Coun try Club at the annual stockholders’ meeting. Edward W. Lyman, vice president of the United States National Bank of Omaha, was re-elected treasurer of the club. The meeting was held at the Omaha Club. News ECONOMIC FUTURE As a top ranking livestock marketing center in the middle of the nation, Kansas City has developed a high level of pros perity far above many other major cities. Any tipping of the level can still secure Kansas City on the upward end, because livestock is produced wealth, new each year. Selection of the Inter-State for a correspondent banking con nection with 24 hour transit department service, gives you a similar and personal sense of safety and security. Why not estab lish your connection at the friendly Inter-State now? the In ter -S tate N a t io n L IV E S T O C K E X C H A N G E B L D G . 16TH . AND al G EN ESEE Ba n k STS * M. J. Warren, vice president of the Wachob-Bender Corporation, Omaha investment banking firm, has been Member Federal Deposit Insurance Corporation irst National f B a n k o f Omaha https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Oldest National Bank From Omaha W est Member Federal Deposit Insurance Corporation Northwestern Banker, March, 1951 72 Nebraska News T HE First National Bank of Lincoln celebrated its 80th birthday last month. At a meeting of the 150 mem bers of the staff of the bank, a large birthday cake was cut by Con C. Healy, manager of the transit department, and the oldest employe of the bank, with 42 years of service. The bank was organized on Febru ary 24, 1871. The city of Lincoln had been in existence slightly over three years at this time and the first railroad to reach Lincoln had been built during the previous year. The first statement of the bank showed deposits of $70,000 and a capitalization of $35,000. This compares with the present day deposit total which exceeds $54,000,000 and a capitalization of over $3,400,000. George W. Holmes is chairman of the board of the institution, Howard Freeman is chairman of the executive committee, and Burnham Yates is president. P. B. Easterday, formerly chairman of the board and an execu tive of the bank for many years, con tinues to serve the bank in an advi sory capacity. * * * Nebraska’s 288 state banks had big jumps in both assets and deposits dur ing the last six months of 1950. Assets during the June 30th-December 30th period increased $37,438,000 from $379,771,197 to $417,254,235. Total deposits took a $36,451,066 jump, from $352,453,000 to $388,903,572. The increase was largely in demand deposits. Time deposits and those due from the U. S. government and state and political subdivisions in creased approximately $2,900,000. These figures were taken from a summary of the conditions of the banks by State Banking Director J. F. McLain. Owl 8 0 th.Cbmw&AAaAi^ On February 24, 1871, The First National Bank of Lincoln was founded, and has been serving Lincoln and Nebraska for 80 years. The policies responsible for this record of service continue . . . we approach the future with confidence. THE FIRST NATIONAL BANK OF LINCOLN LINCOLN, NEBRASKA Member Federal Deposit Insurance Corporation Assets December 31, 1949, amounted to $390,309,198. Total liabilities for the June-December period increased $36,443,339, from $353,260,830 to $389,704,170. The De cember 31, 1949, figure was $365,278,437. Cash and balance due from banks increased $22,500,000 during the last six months of 1950. There was an increase in govern ment bonds of about $9,500,000 and municipal obligations increased ap proximately $1,500,000. * =0 Lincoln banks, all of which are members of the Federal Deposit In surance Corporation, have announced receipt from the FDIC of new certifi cates of membership, which give ef fect to the recent increase in insur ance coverage to $10,000. =t= * * G. A. Dunlap and M. W. Dunlap re cently purchased controlling interest YOUR STATE BANKERS ASSOCIATION OFFICIAL SAFE. VAULT AND TIMELOCK EXPERTS F. E. DAVENPORT & CO. OMAHA Northwestern Banker, March, 1951 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Nebraska in the Farmers and Merchants Bank, Milford, Nebraska. M. W. Dunlap, president of the Farmers State Bank of Douglas, was elected president of the Milford Bank, and G. A. Dunlap was elected execu tive vice president and he will active ly operate the bank. G. A. Dunlap has been associated with The First National Bank of Lin coln for some time. Blair, Nebraska, by the Washington County Bank. The dinner has become an annual affair. A part of the program was the giv ing of awards to leaders who have rendered outstanding service for a News 73 length of time. A half dozen leaders received five year pins, several were recognized for 10 years of service and another group received an award for giving 15 years of continuous service to club leadership. Buy Bank's Interest M. W. Dunlap and sons of Douglas have purchased a controlling interest in the Farmers and Merchants Bank at Milford, Nebraska. G. A. Dunlap, who has been employed by the First National Bank at Lincoln, has re signed his position and he and his family will move to Milford, where Mr. Dunlap will become managing of ficer of the Milford Bank. M. W. Dunlap and family will con tinue to live in Douglas, where they have been connected with the Farmers State Bank for the past 27 years. T. F. Green T. F. Green, well known banker of Valley, Nebraska, died recently in the Methodist Hospital in Omaha where he had been a patient following a heart attack. Mr. Green was cashier of the Bank of Valley. D o Y o u K n o w — THAT our bank jumped from 471st place to 402nd place, a gain of 69 places last year, according to the "Am erican Banker." H OW EVER we are still small enough to handle your business in a personal and helpful way. Give our n ig h t o r d a y transit de partment a chance to clear your items for you. New Cashier R. P. Stewart, 50, Alliance business man and former banker, has assumed the duties of cashier of the Bank of Hemingford, according to LeRoy Ab bott of the Guardian State Bank. Mr. Stewart, who was associated with the Guardian State Bank for a number of years, will move to Hem ingford shortly after school is dis missed this spring and as soon as housing is available. NATIONAL BANK of COMMERCE LIN C O LN , N E B R A S K A 49 Years at 13th and O Streets Curtis Bank Officer Home of Complete Banking Service Don Wilkinson was elected cashier of the Curtis, Nebraska, State Bank at a meeting of the board of directors. Other officers of the bank are: Scott Wilkinson, president; Earl C. Carstensen, vice president, and Margaret Stewart, assistant cashier. Organized Aug. 4, 1902 4-H Dinner A dinner honoring the 4-H Club leaders of the county was given in BANKS Bought and Sold Confidentially and with becoming dignity BANK EMPLOYEES PLACED 46 Years Satisfactory Service C H A R L E S E. W A L T E R S CO . OM AH A , NEBRASKA https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PAYC cs No Minimum Balance Check Pian \ / _ _ U n it e d S t a t e s C h e c k B o o k C o m p a n y Pay-As-You-Check * 1377 H O W A R D ST. OMAHA Northwestern Banker, March, 1951 74 24-HOUR TRANSIT SERVICE INVESTMENT SERVICE ON GOVERNMENT BONDS SAFE-KEEPING O F SECURITIES PARTICIPATION IN OVERLINES CREDIT INFORMATION NTERNAL OPERATIONS SURVEYS PERSONAL SERVICES OUR SERVICES ’RE GI S TE R " WITH CORRESPONDENTS! More than 400 correspondent banks in the Great Plains and Rocky Mountain area depend upon Live Stock National for assistance and advice. Naturally, the aim of our service is to help reduce your costs and make your operation more profitable. Let us help you tackle a banking problem so you may know why we're referred to as "the bank of friendly service!'7 Live stock^ bank O M A H A , THE B A N K M em ber of Northwestern Banker, March, 1951 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis OF F ed eral N E B R A S K A F R I E N D L Y R eserve and F ed eral S E R V I C E D e p o s it In su ra n c e C o r p o r a tio n 75 Increase Capital Stock At the annual stockholders’ meeting of the State Bank of Fayette, Iowa, the same directors were re-elected, re ports C. R. Carpenter, president. Capital stock was increased from $25,000 to $50,000 by a 100 per cent dividend from surplus and undivided profits. The capital structure now is: Capi tal, $50,000; surplus, $40,000; undivided profits, $16,000, and reserves, $23,000. Iow a NEWS J. H. PULLMAN President Sidney Banker Honored A1 Sanderman, cashier of the Mel bourne Savings Bank, was selected as the “ Honored One for February” in the “ Ramblings” column of the Mar shall County Record, published in Mel bourne, Iowa. The award was made in recognition of Mr. Sanderman’s un tiring efforts on behalf of civic inter ests in Melbourne. Bonaparte Manager Vern Richardson has been appointed manager of the Bonaparte office of the State Central Savings Bank of Keokuk, Iowa. He replaces R. H. White, re signed. Mr. Richardson formerly was manager of the Farmington office. FRANK W ARNER Secretary Des Moines vided profits and reserves are approxi mately $100,000. Mr. Shadle assumed the presidency on January 1, 1951, after moving to Estherville from Eagle Grove where he was executive vice president and cashier of the Eagle Grove National Bank. At Estherville he filled the vacancy created by the resignation of K. J. McDonald, who has since pur chased the Ravalli County Bank in Hamilton, Montana. Open House Lee A. Holland, executive vice pres ident of the Washington State Bank, Washington, Iowa, announces that Thursday, March 22nd, will he the occasion for an open house celebration for the public to view their recently completed bank building. A cordial invitation is also extended to Iowa bankers and their friends to call and see the latest in new bank structures. Cedar County Meeting Seventy-nine persons attended the Elect New Director M. R. TanCreti was elected a direc winter meeting of the Cedar County tor of the Carroll County State Bank, Bankers Association, held in the TipCarroll, Iowa, at a recent stockholders’ ton Country Club, Tipton, Iowa. • meeting. He succeeds the late George The program, in charge of Dale H. J. Hess. All other directors were re New Officers at Boone Smith, president of the Cedar county elected. They are: Joe H. Gronstal, H. C. Overbeck was elected presi bankers, was presented following din Carl J. Hess, Addison G. Kistle, H. A. dent of the Boone State Bank & Trust ner. Oliver Hansen of Durant is vice Matt, William T. Otto and Carl Selzer. Company at Boone, Iowa, by directors president of the association and Carl Mr. Hess is president, Mr. Gronstal at their annual meeting recently. A. Haesemeyer of Stanwood is secretary- and Mr. Selzer are vice presidents and V. Doran was named chairman of the treasurer. J. P. Meinhardt is vice president and board and other officers are as follows: C. Edward Dahlin, attorney for the trust officer. Bertram P. Holst, first vice president; First National Bank of Chicago, ad F. C. Cooper, second vice president; dressed the group on “Legal Aspects Ray Sherman, cashier, and Harland of Present-Day Banking,” and Warren Capital Boosted $100,000 V. Hanson, Edwin S. Miller, II, and Sarle, vice president and manager of Capital of the Hardin County Sav Kenneth D. Sundall, assistant cashiers. the municipal bond department of the ings Bank, Eldora, Iowa, has been in Mr. Hanson also is manager of the Northern Trust Company of Chicago, creased from $100,000 to $200,000 by a Boxholm office. discussed “Municipal Bonds and Taxa stock dividend of $75,000 and the sale The following were elected direc tion.” Roy Jenkins of the Iowa Bank of $25,000 new preferred stock, accord tors: Mrs. Frank Hollingsworth, H. ers Insurance Program, Des Moines, ing to N. P. Black, superintendent of the Iowa Department of Banking. D. Bakley, J. R. Erickson, Ray Pepper, also addressed the meeting. Mr. Doran, Mr. Overbeck, Mr. Holst, Mr. Cooper and Mr. Sherman. §00ir a imvuap M e e t i n g s S c h e d u l e Estherville Changes Francis T. Shadle, president of the Iowa Trust and Savings Bank, Esther ville, Iowa, announces several changes among directors and officers. New directors are: John E. Greig, J. E. Stockdale, Fred Ehlers, C. Elwood Miller and Mr. Shadle. In addition to Mr. Shadle the offi cers are: Mr. Greig, vice president; Mr. Miller, vice president and cashier, and Donald V. Sunde and Arthur B. Irwin, assistant cashiers. Surplus of the Iowa Trust and Sav ings Bank was recently increased from $90,000 to $110,000. Capital now is $50,000, surplus is $110,000 and undi https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The hotel or country club in each town where meetings will he held, and the definite programs to be given have not been an nounced. When this information becomes available it will be pub lished in forthcoming issues of the NOR rHWESTERN BANKER for your convenience. G roup M e e t i n g P la c e D a te 5 10 8 7 Tuesday, Wednesday, Thursday, Friday, May 8 May 9 May 10 May 11 Council Bluffs Chariton Muscatine Iowa City 4 3 2 6 T uesday, Wednesday, Thursday, Friday, May May May May Decorah Iowa Falls Emmetsburg Boone 22 23 24 25 Northwestern Banker, March, 1951 76 l ì r o u p s # a m i ## N ew registration highs were set again this year when Groups One and Eleven of the Iow a Bankers Association held their 1951 meetings last month in Sioux City and Burlington, respec tively. Sioux City had an all-time high with 790 in attendance. Burlington had 300, which is many more than in some past years, and well at the top of any year. Both Groups elected new officers this year, and their pictures appear on the opposite page. _I. ^ ssoc^a^'on President J. H. Pullman, and Secretary Frank Warner, attended both meetings, as did Newt Black, Iowa bank ing superintendent. Pictured on the page opposite are a few of the many bankers who were in attendance at both meetings. Beading from left to right, they are: i n M v v t i m Fred D. Cummings, assistant vice president Drovers N ational Bank, Chicago; C. G. Sjoberg, cashier Farmers N ational Bank, Aurelia, and Frank Fuchs, vice president First N ational Bank, St. Louis. 7— Mrs. Leon L. Gardner, and Leon L. “ Bill” Gardner, vice president Kramer-Gardner Company, Burlington. 8— Joe H. Gronstal, vice president; Carl J. Hess, president, and John S. Reinhart, teller, all of the Carroll County State Bank, Carroll, and Everett Griffith, vice president Iow a-D es M oines N ational Bank, Des M oines. 9— A. H. Schroeder, director D anville State B a n k ; Audrey Daedlow, cashier M ediapolis Savings B a n k ; Robert Lough, vice president Drovers N ational Bank, Chicago, and F. H. Riepe, cashier D anville Savings Bank. l ~ N e w president and secretary of Group One: Ray Stevens, president E arly Savings Bank, and R. A. Schneider, vice presi dent and cashier Security State Bank, Sheldon. 10— J. N. Thomson, president Bank of Centerville, South Dakota, and Arthur Donhowe, vice president Central N ational Bank, Des M oines. 2 N ew officers of Group E leven : President, Charles L. Bosier, executive vice president Burlington Bank & Trust Company, and secretary, E. A. Ebersole, vice president and cashier State Central Savings Bank, K eokuk. 11— J. C. Blackford, vice president Union Bank & Trust Com pany, Ottum w a; T. H. Swiler ( sw inging the crutch), assistant cashier Burlington Bank & Trust, and Frank L. Rosenkrantz, representing Curtis 1000, Minneapolis. 3— R- K. Popple, assistant cashier Bankers Trust Company, Des M oines; Wallace Otto, representative St. Paul Terminal Warehouse Company, Des M oines; L. Nevin Lee, vice president Bankers Trust Company, Des Moines, and Joe Fenner, First N ational Bank, Chicago. 12— The four dirt farm ers who put on a panel discussion at Sioux C ity : Alan E. Bogue (who almost didn’t get in the pic ture), Beresford, South D a kota; Willard Burney, H artington, N ebrask a; Raymond E. Anderson, Hinton, Iow a, and Herbert Pike, W h iting, Iowa. 4— Lined up for the buffet dinner, Lee Huston, vice president Columbus Junction S tate B a n k ; Mrs. Huston; Calvin Aurand, president Iow a-D es M oines National Bank & Trust Company; looking over Mr. Aurand’s shoulder, J. F. Mack, assistant vice president C ity National Bank, K ansas City, and Everett Griffith, vice president Iow a-D es M oines N a tio n a l 13— Tom C. Cannon, at the time the picture was taken district manager in Iow a and Nebraska for the St. Paul Terminal W a re house Company, and now w ith the Commerce Trust Company of Kansas C ity ; Horace Smith, representing Scarborough & Company, Chicago; Ray Stevens, prdsident E arly, Iow a, Savings B a n k ; Carl Bloom, assistant cashier, and E. C. Hansen, both of the First N ational Bank, Omaha. 5— H. E. Eichinger, director, and Boyd Knox, cashier, both of the McCook County N ational Bank, Salem, South Dakota, and George S. Henry, vice president First N ational Bank, Minneapolis. teller Security N ational Bank. 6— Seated, Darwin Ennis, assistant cashier, and W . M. Bailey, cashier, both of Home State Bank, Royal, and John S. Haver, cashier L ive Stock N ational Bank, Sioux City. Standing, C. L. Adams, vice president L ive Stock N ational Bank, Sioux C ity; 15— Part of the line-up at the buffet dinner in Burlington. Fourth from the left, in the grey suit, is Carl Hook, assistant vice president M ississippi V a lley Trust Company, St. Louis. D irectly behind M r. Hook is E. A. Ebersole, of Keokuk. Elected President M. C. Erusha, cashier of the Farmers Savings Bank of Walford, Iowa, for the past 31 years, has been elected 14— The Am erican Institute of B anking exhibit at Sioux C ity: Lester Olson, teller T oy N ational Bank, and E. Barlow Ridley, president, to succeed the late C. E. Snell, who had been president for 35 years and a director for 40 years, Robert C. Erusha, son of M. C. Erusha, has been advanced sistant cashier to cashier. son, Donald M., recently was from assistant examiner to with the FDIC. from as Another promoted examiner Louis B. Spinney Professor Louis B. Spinney, vice president of the Ames Trust & Sav ings Bank for the past 37 years, died in Ames, Iowa, recently as a result of a heart ailment. to provide their Chicago accounts with complete banking service, in a prompt, efficient manner. Our facilities are at your disposal. Professor Spinney, who was active in many Ames community affairs, was head of the Physics Department at Iowa State College for 33 years, until his retirement from administrative duties in 1942. Officers Advanced C it y National B ank A N D T R U S T C O M P A N Y o f C h ic a g o 208 SOUTH ( .M E M B E R LA S A L L E Following the anual meetings of stockholders and directors of the Dix on Savings Bank, Dixon, Iowa, P. J. Thede, president and board chairman, STREET FEDERAL D E P O S IT IN S U R A N C E CORP.) YOUR STATE BANKERS ASSOCIATION OFFICIAL SAFE. VAULT AND TIMELOCK EXPERTS F. E. DAVENPORT & CO. OMAHA Northwestern Banker, March, 1951 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 78 lowa News announced the re-election of all direc tors and the advancement of John Thede from cashier to executive vice president, and the promotion of W. A. Dieckmann from assistant cashier to cashier. Earnings a n d dividends showed an outstanding year and 10 per cent dividends were paid during 1950. A baby daughter, Linda Rae, was born to Mr. and Mrs. Dieckmann early last month. Elected Cashier Ray S. Glenn was advanced from assistant cashier to cashier of the Iowa State Savings Bank at Knoxville, Iowa, at the annual meeting. How ard L. Kading, former Knoxville city clerk, joined the bank as teller last month. Extensive remodeling and enlarging of the bank interior is progressing rapidly. J. C. Collins, president, is enjoying a vacation in Gulfport, Mississippi. New London Changes R. E. Colton, a well-known resident of New London and World War II vet eran, was elected assistant cashier of the Farmers State Bank, New London. Iowa, at a recent meeting. Remodeling Completed How City National’s Years Ahead Facilities M a k e C o r r e s p o n d e n t Service W a y s Better Speedy Handling of Grain and Other Drafts f o r You Speedy Collection of Your Checks and Drafts is as sured through 24-hour transit and direct sendings all over the world. In addition to two teletype machines direct to hundreds of banks and investment houses in principal cities, City National is a member of The Bank Wire, most extensive private wire service in existence. Free 48-Hour In-the-Bank Parking and Roomy, Pri vate Conference Rooms are at your disposal when you visit Kansas City. A private desk, telephone and stenographic service are yours for as long as you need them . . . without cost! Close Personal Attention to Your Bank's Special Re quirements facilitates your banking business around the corner or around the world. Count on City N atio nal to give you the unusual as well as the usual in correspondent service. Your account is invited. iVi mi i him a1 Charles Kelley, president of the First State Bank in Manchester, Iowa, announces completion of extensive remodeling which has been under way in the bank for some time. Ceilings have been lowered from 18 to 10 V2 feet, streamlined fixtures have been substituted for outdated grill work, and a directors’ room, conference room and bookkeeping room have been added. $50,000 Capital Increase Stockholders of the Peoples Trust and Savings Bank at Indianola, Iowa, voted at their recent annual meeting to increase capital stock from $100,000 to $150,000'. Surplus and reserves also are $150,000, making total capital struc ture of $300,000. Open House Officers, directors and employes of the Jefferson State Bank at Jefferson, Iowa, held open house for Jefferson residents early this month in observ ance of the bank’s 25th anniversary. California Vacation Mr. and Mrs. F. B. Claxton of Fay ette, Iowa, spent a three weeks’ vaca tion in and around Los Angeles and Hollywood, California, last month. Mr. Claxton is vice president of the State Bank of Fayette. Officers Promoted K a n s a s C ity 10, Mo. Friendly Kansas Gty Headquarters for You CC CO» t O Ben Jaspers was promoted from cashier to executive vice president by directors of the Farmers Savings Bank of Steamboat Rock, Iowa. Succeeding "Our Personalized Services Are At Your Disposal" T H E T O Y N A T IO N A L B A N K SIO UX CI T Y , IO W A Member Federal Deposit Insurance Corporation Northwestern Banker, March, 7951 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 79 IT PAYS TO HAVE AN effective connection W hen you’re working with current— or with currency — effective connections mean greater efficiency and better all-around results. From long experience, Iowa hankers have found the Bankers Trust is a highly effective connection in Des Moines. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis m M ember Federal Reserve System • m M ember Federal Deposit Insurance Corporation D IR ECTO R S O F F IC E R S P A U L B E E R ............................. .................P re s id e n t, T h e F lynn D airy Co. J. W . H U B B E L L . T H O S . A . B U R C H A M , M.D................................................................... R a d io lo g is t S. C. P I D G E O N . ............................................. F. W . H U B B E L L ...................... . P re s ., E q u ita b le L ife In s. C o. o f Iow a F. S. L O C K W O O D V ic e P r e s id e n t & T r u s t O fficer J. W . H U B B E L L ..................... ................................... C hairm an o f th e Board C. W . M E S M E R . ............................... G E R A L D A. J E W E T T ........... V . P. and G en. M gr., J e w e tt L u m b er Co. F. C. A T K I N S . . . . . . V ic e E. J. L 1 N D H A R D T ................ ............. P re s ., N ation al B y -P ro d u cts , In c. L. N E V I N F. S. L O C K W O O D ................ ....................V ic e P re s id e n t & T ru s t O fficer WM. S. F. Me G I N N ........................... V. P ., T angney M cG inn H o te ls Co. E. T . M E R E O I T H , J R ............ ............. ... . V . P ., M ered ith P u b lis h in g Co. S H I R L E Y P E R C I V A L ........... ............. P re s ., G reen C o lo n ia l F u rn ace C o. S. C. P I D G E O N ..................... ................................................................... P resid en t R E E L , ................ ................................P re s id e n t, Y e llo w C ab C o. F . R O S E N F I E L D ............. . C hairm an o f B oard , Y o u n k e r B ro s ., In c. RUSSELL J. JOHN D. S H U L E R ................ ............................. P re s id e n t, S h u le r C oal C o. LEE E LLIS O N . G. A , M O E O K L Y , A. F. E R I C K S O N . J. B. M O N A H A N . S. G. B A R N A R D ............. C h airm an o f th e Board V ic e P re sid e n t P re s id e n t P re sid e n t & C a s h ie r ................................... V ic e P re sid e n t ....................................V ic e P re s id e n t .....................................V ic e P re sid e n t ............................. A s sista n t C a sh ie r ................... ... . , A s s is ta n t C a sh ier , . . A s st. S e c y . & T ru s t O fficer M. N. B A I R D ____ ........................... R. K . P O P P L E . . ................... , A s s is ta n t C a sh ie r A s sista n t C a sh ier Northwestern Banker, March, 1951 80 Io w a N e w s him as cashier is Alvin W. Jaspers, formerly assistant cashier. Mrs. Nelle T. Speers, president, and other officers and directors were re-elected. With Monticello Bank James A. Maurice has been named cashier of the Monticello State Bank of Monticello, Iowa. He succeeds the late Halstead M. Carpenter. president and cashier of the West Des Moines State Bank, was elected presi dent of the Chamber of Commerce in West Des Moines, Iowa, recently. New Director John G. Salsbury, vice president and general manager of Dr. Salsbury’s Laboratories in Charles City, Iowa, has been elected a director of the Citi zens National Bank there. Joins Belle Pllaine Bank Kenneth Fidler has joined the Citi zens State Bank of Belle Plaine, Iowa, as assistant cashier. He fills the va cancy left by the recent resignation of Clifton Cavanaugh, who has accepted a similar position with the State Bank of Clarks Grove, Minnesota. Mr. Fid ler worked three years in the Nodaway Valley National Bank at Villisca, two years in the Iowa State Bank and Trust Company at Iowa City, and more recently for a certified public ac countant firm in Cedar Rapids. Chamber President Forrest Galbraith, executive vice __________ Riceville Election Aldis Dunton was advanced from cashier to executive vice president by directors of the First National Bank in Riceville, Iowa, at their recent meet ing. Rex Willis was promoted from assistant cashier to cashier, and Rus sell Noble was elected assistant cash ier. for all of your CHICAGO ITEM S Drovers specialized facilities and trained staff do speed col lections. Drafts receive special handling in every part of Chicago . . . Remitting livestock proceeds is geared to save time . . . often a full day. The Drovers National Bank is a regular member of the Chicago Clearing House. Named Assistant Cashier Thomas R. Roberts, Jr., was ap pointed an assistant cashier by direc tors of the Security Trust and Savings Bank of Decorah, Iowa. Alvah Grif fith also was appointed to the staff as teller. We invite you to use Drovers Service fo r a ll you r Chicago item s «<<*ÄSr„K / Elected Cashier Dale Kelley has been elected cashier of the National Bank of Burlington in Burlington, Iowa, and took over his duties last month. Mr. Kelley recently resigned as vice president and cashier of the Farmers and Merchants Savings Bank in Burlington. V. P. Cullen, executive vice presi dent of the National Bank of Burling ton, announced Mr. Kelley’s election and said the latter would fill the vacancy created by the death last sum mer of Thomas L. Dyer, then cashier. ACORN DROVERS NATIONAL BANK DROVERS TRUST 0 SAVINGS BANK U N I O N S T O C K Y A R D S , For in fo rm a tio n w r ite C H I C A G O THE ACORN PRINTING CO. OAKLAND. IOW A ____________________________________ _ Members, Federal Deposit Insurance Corporation D id you know th ere’s a ga p in yo u r C ash L e tte r protection th a t you could “ drive a tru ck th r o u g h ? ’ A s k us how to bridge it w ith o u t co stin g you a Scarborough & Company Insurance Counselors cent. F I R S T N A T IO N A L B A N K B U I L D IN G Northwestern Banker, March, 1951 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • C H IC A G O Registers "Accepted Sale Registers by Bank Clerks Everywhere!" 3, IL L IN O IS # STATE 2 4325 to Banka 81 At Your Service N E year ago today we were proud to serve 220 Upper Midwest Independent Bankers. Starting ’51 our independent corre spondent bank family has grown to 251 "Cornerstones of Community Progress.” Now every community in the United States is faced with decisions demanding im mediate, intelligent action . . . decisions that are in the best interests of our American way of life. Our Free Enterprise System is being challenged by communism which disdains and disregards truth and freedom of the individual. America is a free nation of individual communities— each one served by friendly Independent Bankers who fully realize the importance of their civic and community obligations. They are also keenly aware of the importance of collective National security and independence. The Marquette National Bank commends the Independent Banker and his assumed objective of perpetuating the American way of life and, with it, the inde pendent dual banking system. DEPARTMENT OF BANKS AND BANKERS C h a rles C . Rieger V ice President Otto H. Preus R u ssell L. Stofesbery President ty n n Fuller Executive Vice President https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Assistant V ic e P resident STRONG F R IE N D O F THE I N D E P E N D E N T B A N K E R MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION Northwestern Banker, March, 1951 82 Iowa News S i o u x f ill/ P r o m R. W . L E W IS o t io n s C. H. W ALCOTT PICTURED AB O V E are R. W . Lewis (le ft) and C. H. Walcott (rig h t), whose W h en secured by St. Paul Terminal W A R E HOUSE R E C E IPT S your Inventory Loans ARE S A F E ! • Experienced personnel with tech nical “know how.” • Financial responsibility guaran teeing our custodian obligation, recent promotions at the Security N ational B ank in Sioux City were announced b y Charles R. Gossett, president, follow in g the annual meeting of directors, as reported in the February N orthwestern B anker . M r L ew is was advanced from assistant vice president to vice president and cashier, and M r. W a lco tt was advanced from assistant cashier to assistant vice president. Due to im perfect engravings, the pictures of Messrs. L ew is and W a lco tt appearing in our February issue were not clear, and we are happy to present these new pictures of them for our many banker readers who are friends o f these two well-know n Sioux C ity bankers. Named President Earl B. Lemen has been elected pres ident of the National Bank of Rockwell City, Iowa. He succeeds his father, George B. Lemen, who has retired from the presidency and now is chair man of the board. Earl Lemen has been vice president and cashier. Gretta Cochran was elected vice president and Howard D. Longfellow was promoted from assistant cashier to cashier. Moves to Leon L. I. Hattery has moved from Red Oak to Leon, Iowa, where he has • Centrally located offices for prompt and efficient service. DES MOINES O FFIC E 511 lowa-Des Moines National Bank Bldg. OM AH A O FFIC E 1104 First National Bank Building M ay W e Be of Help As Your Eastern Iowa Correspondent Over 80 years of experience with correspondent bank ing problems assures you of prompt, efficient transit and collection service. When you or your customers or friends have business in Eastern Iowa, let us know by mail, wire or telephone what we can do to be helpful. F IF T H A V E N U E SOUTH»226* BANK e y f C & titc n , ß trp v tt Member of Federal Deposit Insurance Corporation Northwestern Banker, March, 1951 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis WHERE EVERY CUSTOMER IS IMPORTANT VALLEY BANK AND TRUST COMPANY DES M O IN ES MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, March, 1951 84 Iow a New s W om en B a n k e r s H a v e \ iv e and tinElectric ij Company plant. C. D. Hilton, international speech champion of Toastmasters Clubs, was scheduled as the banquet speaker at the Hotel Hanford on “ Lincoln Today.” R. C. Keister, vice president of the First National Bank, was in charge of arrangements for the annual Lincoln day party. Liquidating Bank “W O M E N IN B A N K IN G ” was a much-discussed topic am ong 80 women m em ber of the Brenton organization when they met at H otel Savery in Des M oines last month for their annual tw o-day meeting. A group of the more experienced women bankers, some of whom are officers in their banks, attended a discussion addressed by Alice Harwood, assistant to the personnel director of the Harris Trust and Savings Bank, Chicago. She is in charge of women personnel. M iss Harw ood spoke on “ Opportunities for W om en in Banking.” Another group of more than 40 young ladies had a round table discussion of general banking pro cedures, moderated by Thomas O. Cooper, vice president of the Jefferson State Bank, Jefferson. The above picture was taken at breakfast table the second day of the meeting. L e ft to right are: Eva Keller, Brenton S tate Bank, Dallas Center; Thelma M c Clure, assistant cashier, Jefferson State Bank, Jefferson, who was celebrating her 25th anniversary w ith the bank, which opened just 25 years ago; Miss Harwood, and Helen Rhinehart, secretary to W. Harold Brenton at Brenton headquarters, Des M oines. taken up his duties as vice president of the Decatur County State Bank. Correspondent Party Approximately 90 bankers from north Iowa and southern Minnesota attended the annual party last month given by the First National Bank of Mason City, Iowa, for its correspond ent banks. The party opened during the after noon with a tour of the Peoples Gas You can save a lot of reading At the same tim e, you can keep fully posted on agricultural m atters. In your dealings with farm ers, and with businesses concerned with farm ing, a working knowledge of the agri cultural situation is essential. You will find all the inform a tion you need in the DOANE AGRICULTURAL DIGEST and its twice-monthly releases. You can rely fully on this inform ation— prepared by the oldest and largest farm m an agem ent, research and appraisal organization, managing (f o r p rofit) hundreds of farm s, ranches and plantations. The 450-p ag e loose-leaf Digest— a volume of cumulative inform ation— is kept up to date by the releases, which in terpret trends and predict outlook prices, production, m arkets, shortages and surpluses Write for ahead. FREE SA M PLE RELEASES and see how helpful the Digest will be to you. Thousands of hanks renew their subscriptions annually. Doane Agricultural Service, Inc. ■ Northwestern danker, March, 1951 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Dept. 607, 203 Plymouth Building Des Moines 9, Iowa _______________ _____________ — The Farmers Savings Bank of Gar ber, Iowa, which was organized in 1910, did not renew its charter, which expired. The bank will go into vol untary liquidation, according to H. C. Schnepf, cashier, who is in poor health. He said the volume of assets is ample for the liquidation. Louis J. Martin Louis J. Martin, 51, cashier of the First Trust and Savings Bank, Daven port, Iowa, died last month at a Dav enport hospital after an extended ill ness. He was a past president of the Scott County Bankers Association and at the time of his death was a director of the Mississippi Valley conference of the N.A.B.A.C. He joined the First Trust in 1933 following 15 years’ bank ing experience. Report on Bonds Purchases of United States Savings bonds in Iowa during 1950 amounted to $156,269,323, with Series E bonds accounting for $103,971,186 of the total, according to Roger F. Warin, state director of the savings bonds office. Those figures do not include the ex tra sales of F and G bonds to insur ance companies, commercial banks and other large investors during the “special offering” periods in October, November and December. Another $25,198,452 were invested in F and G bonds during those three months. “ Of all E bonds purchased in the nation last year 84.43 per cent were outstanding on December 31, 1950, while 99.29 per cent of the F and G bonds purchased were still outstand ing. At the end of 1950 71.16 per cent of all E bonds, and 94.14 per cent of F and G bonds, sold in 1949 still were outstanding, and it should be noted that E bonds outstanding now exceed holdings as of V-J Day by more than four billion dollars,” Mr. Warin said. BANKS forSALE ■ W rite for our Bonk Purchasers Application, if you are in the market to buy. Many fine opportunities, now available. All negotiations confidential. HENRY H BYERS, President BANKERS SERVICE CO.; INC. BOX 1415 • DES MOINES S. IOWA • TELEPHONE 2-7300 Iowa N e w s 8 5 meetings, and their topics, are as fol lows: A. R. Jaqua, director, Institute of Insurance Marketing, S o u t h e r n Methodist University, Dallas — “Life Insurance and Social Security”; Fred J j. Chapman, vice president, Thorpe Bros., Inc., Minneapolis—“ Investing in Income Real Estate, Mortgages or a Home” ; Arthur C. Regan, vice presi dent and secretary, First National POSITION W A N TE D ORE than 40 reservations were received by the Central National Bank and Trust Company when it an nounced last month that it would sponsor a “Women’s Forum on Fi nancial Planning,” beginning March 19th. Two sessions each Monday will be held over a six-week period, with the exception of the fifth week, when the day has been set for Wednesday. The meetings will begin at 10:00 a. m. and 7:30 p. m. and will last one and onehalf hours each. The first one hour will be devoted to a discussion of a particular phase of financing by a rec ognized specialist in the field. The last 30 minutes of the program will M Every Check he devoted to a question and answer period. The speakers lined up for the six AT YOUR P osition w anted w ith in vestm en t as officer in Iow a country bank by m an w ith 13 years experience in all p hases o f bank operation. M a r ried, 39, Top R eferences. W r ite M A L , N o rth w estern Banker, 527 7th S tree t, Des M oines, Iow a. SERVICE Endorsed CUMMINS ELECTRIC CHECK ENDORSER List and Endorse in one operation. Every Check Cancelled CUMMINS ELECTRIC CHECK CANCELLER Desk Model Trouble Proof— Fast— No O perator Fatigue! (om m ercejhist (d in p a n y M. I. (Bud) GREENSPAN BUSINESS MACHINES & EQUIP. CQ. C a p iiJ 3 * n < L C xccJ 25 W Æ on K A N S A S . C IT Y 'S M « L A R G E S T . BANK Established 1865 M INNEAPOLIS: 2728 Second Ave. South OMAHA: 208 Patterson Bldg. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, March, 1951 8G Iowa News Bank of Minneapolis — “ Investing in Bonds and Preferred Stocks” ; John S. Bauman, partner, William Blair & Company, Chicago — “ Investing in Common Stocks and Trusts’;; T. M. Ingersoll, attorney — “Wills and Es tates”, and George B. Roberts, vice president, National City Bank of New York—“ The Inflation Problem.” * * * Mr. and Mrs. F. W. Hubbell left Des Moines last month for a vacation at Miami Beach, Florida. Mr. Hubbell is chairman of the board at Bankers Trust Company in Des Moines. * * * Mr. and Mrs. E. F. Buckley are va SMALL and MODERATE SIZE as well as LARGE INVENTORY LOANS present no problem when secured by WAREHOUSE RECEIPTS issued by WILLIAM H. BANKS WAREHOUSES, INC. PROVIDE: MAXIMUM PROTECTION to BANK; MINIMUM INCONVENIENCE to BORROWER; THIRD PARTY CONTROL of PLEDGED MERCHANDISE. Write or phone us today for details. Division Offices: Des Moines, Iowa Angola, Indiana # • St. Louis, Missouri San Antonio, Texas "T H E B E S T ” First impressions count heavily. That's why efficient firms select only the best paper for their communications and printed messages. » * » FOR THE BEST IN PAPER STOCK Consult this Firm NEWHOUSE PAPER COMPANY B e tte r P r in tin g P a p e r s” Minneapolis St. Paul Northwestern Banker, March, 1957 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Des Moines Moline Dubuque cationing in Phoenix, Arizona. Mr. Buckley is president of the Central National Bank and Trust Company. * * * Mr. and Mrs. Frederick M. Morrison are on a vacation trip to Florida and Nassau. Mr. Morrison is president of the Valley Bank and Trust Company. Iowa Deposits Increase On December 30, 1950, 557 Iowa chartered banks and 164 bank offices had total assets of over $1,660,000,000, an increase of $76,000,000, or 4.78 per cent over December 30, 1949. Total deposits were $1,558,000,000, an increase of $66,000,000, or 4.45 per cent over December 31, 1949, and $61,000,000 less than the all time high on Decem ber 31, 1947. Demand deposits increased $71,000,000, or about 21 per cent, while time deposits decreased $4,000,000, or ap proximately 1 per cent less than a year ago. Total loans were $556,000,000, an all time high, an increase of $106,000,000, or 23.67 per cent over December 31, 1949. Most of this growth occurred in agricultural loans, real estate loans, and in other loans to consumers. Investments in securities of states and local governments were $105,000,000, an expansion of $13,000,000, or 14.55 per cent over December 31, 1949. Holdings of United States govern ment securities were $609,000,000, a decline of $58,000,000, or 8.75 per cent less than December 31, 1949. Other investments in securities oth er than government securities and mu nicipal obligations were $18,000,000, about the same as December 31, 1949. Commodity Credit Corporation guar anteed loans were $26,000,000, a de crease of $32,000,000, or 55.25 per cent less than December 31, 1949. The cause of this decline is due to the fact the cash market price on oats, beans and corn exceeds the sealing price, therefore farmers are not sealing as much grain as they did a year ago. Iowa on THE é BEAUTIFUL GULF [OAST OF News 87 FLORIDA 'È È The Perfect Sunshine Months’" ST. PETERSBURG y //w FLORIDA ¿ t /y AlfflOST 100% sun5HinE J O H N J. D E W E Y , M a n a g in g D irector W R IT E TH E https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SOREN O HOTEL FO R FUREH ER IN F O R M A T IO N A N D L IT E R A T U R E Northwestern Banker, March, 1951 88 iowa News Cash reserves were $338,000,000, an increase of $45,000,000, or 15% per cent over December 31, 1949. QnusidJtiqjodsi Total capital funds were $113,000,000, an increase of $9,500,000, or 9.21 per cent over December 31, 1949. Addresjojjraph S c w in q A , Addressing by hand or type writer method costs 10 times as much as the modern Addressograph method. The ratio of capital funds to assets improved from 6.5 per cent, December 31, 1949, to 6.8 per cent December 30, 1950. Approximately 62 per cent of depos IN D E X OF A D V E R T IS E R S MARCH, 1951 A Acorn P rinting C om pany...................................80 Addressograph Sales A g e n c y ........................88 Allied Mutual Casualty C om pany.............. 51 Am erican National Bank and Trust Co.. .20 B OMAHA — DES MOINES DAVENPORT B a llard -H assett C o m p a n y .............................. 39 Bank of A m e r ic a .................................................. 26 Bank of M on trea l................................................ 61 Bankers Service Co., Inc...........61, 64, 68, 84 Bankers Trust Company— Des M oines. ..7 9 Banks, W illia m H., W arehouses, Inc. . . . 8 6 Becker, A. G., and Company, Inc................ 36 Becker & Cownie, Inc.........................................38 Beh, Carleton D., C om pany............................34 B eyer-R ueffel & C om pany.............................. 32 Blair, Rollins & Company, Inc.....................34 Blair, W illia m , and C om pany....................... 43 Burroughs A dding Machine C o m p a n y ... 6 Business Machines and Equipm ent C o .. . 85 MERCHANTS C A d d r e s s a q r a p I USPAT Off mmmt TPAOf MARK RCC US 9 MUTUAL BONDING COMPANY incorporated 1933 Home Office 2100 GRAND AVENUE Des Moines, Iowa This is Iowa’ s oldest surety company. A progressive company with experi enced, conservative management. W e are proud of our two hundred and fifty bank agents in Iowa. T o be the exclusive representative of this company is an asset to your bank. Central H anover Bank and Trust Co. . . . 5 6 Central National Bank and Trust Co. . . . 1 2 Central States M utual Insurance Co........ 55 Chase National B a n k ........................................ 9 City National Bank— C lin ton ........................82 City National Bank and Trust Company — Chicago' ........................................................... 76 City National Bank and Trust Company -— K ansas City .................................................. 78 Commerce Trust C om pany.............................. 85 Continental-IU inois National Bank and Trust C o m p a n y ................................................ 91 Continental National Bank— Lincoln . . . . 70 Crabbe, Thom as L ., and C om pany.............. 42 I) Davenport, P. E., and C om pany........... 72,76 De Luxe Check Printers, Inc......................... 44 Des Moines B uild ing-L oan and Savings A ssociation ......................................................... 86 Doane A gricultural Services, Inc................ 84 Drovers National B a n k ..................................... 80 E E llinor V illa ge ................................................... 54 Em ployers Mutual Casualty Com pany. . .46 F Farm ers M utual H ail Insurance Co...........49 F irst National Bank— C h icago.................... 4 F irst National Bank— L in co ln ......................72 F irst National Bank— O m aha.................... 71 F irst National Bank— St. Joseph................68 F irst W isconsin National B a n k .................. 8 G Graefe and C om pany........................................ 39 Guaranty Trust Com pany............................... 22 E. H . W A R N E R Secretary and Manager W . W . W ARNER Assistant Secretary Northwestern Banker, March, 1951 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis II H alsey, Stuart and Company, Inc................ 32 Harris Trust and Savings B a n k ................... 28 H aw k eye-S ecu rity Insurance Com pany. .53 Henderson, T. C., and Company, Inc..........42 Home Insurance C om pany............................. 3 its in Iowa state chartered banks are in cash, U. S. government securities and Commodity Credit Corporation guaranteed loans. Iowa chartered banks continue to be conservative in their cash dividend policy, leaving more than 74 per cent of 1950 net earnings in their capital structure, an additional protection to its depositors. Fifty-two banks in creased common capital stock by stock dividends during 1950. I Independent Bankers A sso cia tio n ...............61 Inter-State National B a n k ............................ 71 Investors Diversified Services, Inc............64 Iow a-D es Moines National B a n k .................92 Iow a Home M utual Insurance Com pany. 52 Iow a Lithographing- C om pany..................... 86 Iow a Mutual Casualty C om pany.................64 .1 Jamieson and C om pany..................................... 59 K K alm an and C o m p a n y ....................................... 42 K irk p atrick -P ettis Company ....................... 30 Koch B r o t h e r s .......................................................46 L, La Monte, George, and S on ........................... 5 Live Stock National Bank— C h icago......... 23 Live Stock National B ank— O m ah a......... 74 Live Stock National B ank— Sioux C it y .. 62 Long, R. C., and C om pany............................. 43 M Marquette National B a n k .................................81 M ercantile-Com m erce Bank and Trust Company ..............................................................36 Merchants M utual Bonding Com pany. . . .88 M erchants National B a n k ............................. 2 M inneapolis-M oline Pow er Im plem ent Company ............................................................. 60 M innesota Com m ercial M en’s A ssn .............. 59 N National Bank of C om m erce......... National Cash R egister Company Newhouse Paper C om pany............. 73 14 86 O Omaha National B a n k ...................... 21 P Policyholders National Life Insurance Company .......................................................... Priester and C om pany.................................... R R avenscroft and C om pany.............................. 34 Recordak C o rp o ra tio n ............................... 40, 41 Republic National Bank of D a lla s ............ 27 Royal Bank of C anada....................................... 58 S St. P aul-M ercury Indem nity C o m p a n y ..55 St. Paul Term inal W arehouse Com pany. .82 Scarborough and C om pan y............. 47, 67, 80 Shaw, M cDerm ott and C om pan y.................. 30 Smith, Polian and C om pany..........................38 Soreno H otel ......................................................... 87 Sparks and C om pany......................................... 38 Square Deal Insurance C om pany................... 53 Stifel, Nicolaus & Company, Inc..................30 Stock’ Y ards National Bank— Om aha. . . .69 T Todd Company, T h e ..........................................45 Town M utual D w elling Insurance Co. . . . 5 0 Toy National B a n k ............................................ 78 U United States Check B o o k .............................73 United States National B a n k ...................... 66 V V alley Bank and Trust C om pany............... 83 V alley National Bank— P h oen ix..................44. W W acob-B end er Corporation .........................42 W alters, Charles E., C om pany....................73 W heelock & Cum m ins.................... ................. 44 W h ite -P h illip s Company, Inc......................38 89 Smatters of Interpretation Dictator State: One where every thing that is not forbidden is com pulsory. Civil Service: Something you get in restaurants between wars. Cocktail: Ice cubes with an alcohol rub. Scandalmonger: Prattlesnake. Sugar Daddy: Form of crystallized sap. Virtue: In the female, lack of tempta tion: in the male, lack of opportunity. Model: Just a build in a girdled cage. Secret: Something that everybody knows t h a t the small-town paper can’t publish. Friend: A present you give your self. Baby Carriage: A blunderbuss. Courtship: The period in which the girl makes up her mind whether or not she can do any better. Diplomat: The man who can con vince his wife that a woman looks stout in a fur coat. Capital Punishment: When the gov ernment sets up in business against you and then takes all your profits to pay its losses. Gentleman: A guy who does not blow his knows. Class Reunion: Mixing old grad with Old Grandad. Following Instructions A boss had to lay off an Irishman named Pat. To avoid argument, he put the discharge in writing. A week later, in passing through the shop, he saw Pat back on his job. Going to the Irishman, he demanded fiercely: “Didn’t you get my letter?” “Yis, sur, Oi did,” said Pat. “Didn’t you read it?” “ Sure Oi read it inside and outside. On the inside ye said I was fired and on the outside ye said ‘Return to the Blank Company in five days’.” High Class Workman: “ I’ll take the job if you can find me some place to park my car.” Foreman: “Guess you won’t do, Bud. We only hire bricklayers with chauf feurs.” https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Puzzled Psychiatrist: “What’s your trouble, young man?” Young man: “ The trouble with me is, sir, that I’m from Texas and ashamed of it.” Still Falling Man (in barber chair, complaining about falling hair): Won’t you give me something to keep it in? Barber: Why, certainly; here, take this cigar box. C O N V E N T IO N S March 22-23, Annual Meeting, A B A Agricultural Commission, Des Moines, Hotel Fort Des Moines. A pril 9-10, Annual Convention, Inde pendent Bankers Association, M obile, Alabama. April 22-24, Spring Meeting A B A Executive Council, French Lick Springs Hotel, French Lick, Ind. May 6-9, Assn. Reserve City Bankers, The Greenbrier, W hite Sulphur Springs, W est Virginia. May 7-9, Annual Convention Missouri Bankers Assn., Kansas City, Hotel Muehlebach. May 11-12, Annual Convention South Dakota Bankers Assn., Sioux Falls, Cataract Hotel. May 25-26, Annual Convention North Dakota Bankers Assn., Fargo. June 4-8, American Institute of Bank ing, Pittsburgh. June 12-14, Annual Convention Illinois Bankers Assn., St. Louis, Hotel Jefferson. June 13-14, Annual Convention Minne sota Bankers Assn., Minneapolis, Hotel Radisson. June 18-20, Annual Convention W is consin Bankers Assn., Milwaukee, Hotel Schroeder. September 30-October 3, Annual Con vention American Bankers Assn., Chicago, Stevens Hotel. October 11-12, Annual Convention Nebraska Bankers Assn., Omaha, Hotel Fontenelle. October 21-24, Annual Convention Iowa Bankers Association, Des Moines, Hotel Fort Des Moines. November 12-15, Annual Convention Financial Public Relations Assn., Hollywood Beach Hotel, Flollywood, Florida. Psychology W ith a Sim per A golfer always had trouble ap proaching a certain elevation. His ball always dropped into a deep ravine be yond. “Well,” the golfer commented to the quiet, thoughtful youth who was his regular caddy, “here’s where I land in trouble again.” “You won’t have to worry about that today,” answered the caddy. “They filled the ravine yesterday.” Brightening noticeably, the golfer teed off. It was a honey of a drive, sailing straight to the green. But when the golfer came to the top of the knoll, he discovered the ravine was still there below. “Why, you told me a lie!” he berated his caddy. “ If I hadn’t, sir,” said the caddy, “you’d never have crossed it.” Pardon the Rib “ Now, can anyone tell me what a skeleton is?” a teacher asked her class. After a few seconds of silence, a little boy spoke up: “ It’s the bones with the people rubbed off.” Magic Out of curiosity a farmer had grown a crop of flax, and had a tablecloth made out of the linen. Sometime later he bragged about it to a woman guest at dinner. “ I grew this tablecloth myself.” “Did you really?” she exclaimed. “ How did you manage it?” It was plain that she had no idea as to how tablecloths come into being. The farmer lowered his voice myste riously. “ If you promise to keep the secret, I’ll tell you.” The guest promised. “Well,” proceeded the farmer, “ I planted a napkin.” Pulling the Wool “Hey you, pull over,” the traffic cop shouted. The lady complied and next day the judge fined her $25. She was quite upset, not wishing for her hus band, who kept an eagle eye on her checkbook, to learn of the incident. Then, struck by a thought, she penned on the check stub: “One pull-over, $25.” Northwestern Banker, March, 1951 90 LEGAL i s i ' a H n a s r t i n U k L f f i a S b p l e o i l s f o r T r a m i t Q . An No. In a recent decision involving similar facts the Ohio Supreme Court held that the employee driving the ball to the injury of the person on the adjoining f a i r w a y was not acting within the scope of his employment in doing so inasmuch as he was volun tarily participating in the competition after working hours and that his em ployer could not be held liable. This and Other Timely Legal Questions Are Answered b y the L E G A L DEPARTM ENT of t h e N O R T H W E S T E R N BANKER Q No. It has been held generally that there is not breach of a covenant not to compete when the covenantor merely lends money to a person en gaged in a similar business. It follows that the loan by the bank in circum stances where Senn passed on it did not cause Senn to violate his agree ment. Illinois, New Mexico, and Wis consin are among the jurisdictions in which the base legal principle here involved has been specifically recog nized. Q .Kidder, a b a n k e r ’ s daughter, taught school and, as an incident to the Northwestern Banker, March, 1951 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis p o n s o r s ? biding at a public tax sale. They knew that the money they had available sin gly was not enough to buy it and they agreed that they would put up equal amounts, that Clamp would do the bidding and make the purchase, and that thereafter he would convey half to Hooper. The agreement was for an honest purpose and not to discourage bidding. Could Hooper, after Clamp bought the premises, enforce the agree ment to convey one-half to him? Ohio bank sponsored and fi nanced a team, the individuals of which participated voluntarily in an industrial golf league after regular working hours. One of the clerks at the hank, a member of the team, drove a golf ball which struck and in jured a third party playing on the adjoining fairway. The injured party sought to hold the bank liable. Could he do so? . Senn, a bank director, owned an extensive grocery business which he sold out to a chain store concern for a sizeable amount of money. As a part of the deal he agreed not to re engage in that business and compete with the chain for a certain time in a certain area. Within that time and area his bank made a sizeable loan to an individual also in the grocery busi ness. Senn was a member of the com mittee that approved the loan for the bank. Did he, under the general law on such matters, violate his agreement not to compete? S continuation of her employment, had to either attend summer school or take an examination on five selected books. She decided to, and did, attend summer school at Columbia University, New York, New York, for which she in curred $250 in expenses. In making her federal income tax return she took a deduction of that amount as a busi ness expense in determining her tax able net income. Was this proper? Yes. The United States Court of Ap peals, Fourth Circuit, Judge Dobie, has so decided recently in a case involving similar facts, thereby reversing a Tax Court decision. Summarized, the rul ing was that the amount expended by a teacher attending summer school is deductible as “ordinary and neces sary business expenses” for income tax purposes where she is required under state law to either attend summer school or take an examination on five selected books as a prerequisite for renewal of her certificate. Q . Clamp and Hooper, both bankers, were interested in purchasing certain real estate that was coming up for Yes, under the weight of modern authority. There are some early cases reaching an opposite conclusion but recent holdings run to the effect that honest agreements of the type here involved are not against public policy and are enforceable between the par ties. Decisions recognizing the mod ern view may be found in Arkansas, Colorado, Georgia, Indiana, Kentucky, Missouri, Nebraska, Oklahoma, Wis consin, and elsewhere. 1950 SERIES On November 9, 1950, in the interest of effecting economies and providing for the more expeditious scheduling of production, the Treasury Depart ment announced a new series of notes of the $5, $10 and $20 denominations. The new notes, designated Series of 1950, have the signatures of the Secre tary of the Treasury and the Treasurer of the United States, the series desig nation, and the identification of the issuing Federal Reserve Bank over printed in the same manner as the serial numbers and the seal, instead of being engraved as heretofore. The Treasury Department states further that the serial numbers of the notes are slightly reduced from their former size and now are identical in style with the serial numbers which appear on the one dollar silver certifi cates. Federal Reserve notes of the Fed eral Reserve Bank of Chicago of the new Series of 1950 have just become available in limited amounts and now are being placed in circulation in the Seventh Federal Reserve District. ' lo ck B o xy C H IC A G O . 90 Mail addressed to Lock Box H ar rives at the Chicago Post Office di rectly across Clark Street from the Continental Illinois Bank and is picked up by bank messengers at frequent intervals, night and day, seven days a week. Prompt processing of all items by the Continental Illinois takes every possible advantage of check clearing hours in Chicago and other cities and the schedules of out bound trains and planes. For all your sendings—useLOCK B O X H envelopes. A free supply— regular or air mail—on request. f à liti Ì Continental Illinois National Bank https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis and Trust Company of Chicago L O C K B O X H, C H I C A G O 9 0 , I L L I N O I S M em ber Federal Deposit Insurance Corporation GRAIN DRAFTS from IOW A BANKS Serviced Promptly and Ac c u r at el y Correspondent banks from all sections of Iowa are routing an increasing number of grain drafts to this Bank. The facilities of this Bank are organized to handle a large volume of transit business promptly and accurately on the same day it is received. Iowa Banks and Bankers are relying on this Bank to a greater extent than ever before for prompt, efficient handling of drafts and other items. W e invite your business. m ÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊm ÊÊÊÊÊÊÊÊm Total Resources Over One Hundred Million Dollars IOWA-DES MOINES NATIONAL BANK https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Member Federal Deposit Insurance Corporation
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