Full text of The Northwestern Banker : March 1955, 61st Year, No. 812

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Eliminate Long
Waiting Lines
— Page 20

Annual Investment
Review
— Pages 39 to 50

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Federal Reserve Bank of St. Louis

AT NORTH DAKOTA JUNIOR BANKERS SCHOOL
Aspiring young bank men and women attended annual School for Junior
Bankers last month at University of North Dakota. See page 8.

O F F I C E R S
Ja m e s

E . H a m il t o n

Chairman Executive Committee
S . E . COQUILLETTE

Chairman of the Board
J o h n T . H a m il t o n II

President
F red W . S m it h

Vice President
R e g in a l d B . F igge ,

Vice President
M a r v in R . S e ld en

Vice President
R. W . Manatt

Vice President
L e o n a r d W . B r o u l ik

Vice President
S. J . M o h r b a c h e r

Vice President
J . E . C o q u il l e t t e

Vice President
A r t h u r E . L in d q u is t , J r .

Vice President

To Serve Your Customers Better
Depend on Merchants National

E verett C . P r a t t

Cashier
C. F . P e r e m s k y

Asst. Cashier
V ictor W . B r y a n t

Asst. Cashier
N . J. D autrem ont

Asst. Cashier
R obert A . H a h n

Asst. Cashier
W . F . V om acka

"M /T O R E than h a lf the banks in Iow a are m em bers o f T h e M erchants
N ational’ s “ fa m ily ” o f correspon d en t hanks.

Asst. Cashier

T his correspondent
TRUST D EPARTM EN T

con n ection enables these hanks to p rovide their custom ers with time-

R u s s e l l I. H e ss

tested M erchants N ational Bank service.

R. D. B r o w n

Vice President

D aily they in corp orate as a

part o f their service the trained specialists and the facilities o f The

Trust Officer
O. A. K e a r n e y
Trust Officer
F„ F orbes O lberg

M erchants N ational Trust D epartm ent. A lert hank executives appreciate
this m ethod o f increasing their “ staff" w ithout increased overhead.
u n excelled,

nationw ide

hanking

con n ections

depend

M erchants National Bank correspon d en t service.

Ass’t. Trust Officer

F or

time-tested

Y o u r in qu iries are

M O RTG AG E L O A N
DEPARTM ENT
R a y m o n d D. O rr
M anager

appreciated.

THE

Merchants
Bank
OF

CEDAR

RAPIDS,

IOWA

Member Federal Deposit Insurance Corporation
No. 812. N orthwestern Banker, published m onthly by the N orthwestern Banker Company, at 306 F ifteenth St., Des M oines, Iowa. Subscription,
35c per copy, $3.00 per year. Entered as Second Class M atter January 1, 1895, at the P ost Office at Des Moines, Iowa, under A c t o f M arch 8, 1879.

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Federal Reserve Bank of St. Louis

STOPPER!
The red flare flashes its message o f danger before any dam age can
be done. Similarly, safety paper is the “ stopper” that prevents
check tampering, nipping financial dam age in the bud. W hen you
provide your customers with checks lithographed on La M onte
Safety Papers you automatically give them this protection . . .
plus the added bonuses o f pride and prestige w hich all o f us feel
w hen w e’re using a high-quality product. Your customers will
appreciate checks lithographed on La M onte Safety Papers.
Samples may be obtained from your lithographer or from us direct.

A Check Paper All Your Own
Thousands of banks and many of the larger corporations use La Monte
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.

THE W A V Y LINES ® ARE
A LA MONTE TRADE-MARK

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Federal Reserve Bank of St. Louis

Northwest ern Banker, March, 1955

ANOTHER RECORDAR "PLUS"

Lost transit letters replace

Digitized forNorthwest
FRASER ern Banker, March, 1955
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Federal Reserve Bank of St. Louis

I f one o f vonr transit letters is lost en rou te—
and it could happen anytim e— y o u ’ll be dou bly
glad y ou bave R ecordak M icrofilm copies o f the
missing items.
First o f alb y o u ’re p rotected . . . and so are
depositors. More than that y ou 'll bave a duplicate
transit letter on its w ay w ithout delay.
Y o u sim ply send you r films to the nearest
R ecord ak Film Processing Center. Check-size
facsim ile prints are m ade . . . and rushed to you . ^

extra cost— a convenience for you and your depositor

romptly...without extra charge
ow customers
ppreciate this service

U oc^ R F m s T \ ^
° F ^" S
u “A^'s„E
DAo'ritC;0
U
, “c

/i,

ble ddress

he letter reproduced here is typical o f hundreds
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e always at your calk

Write today for complete R ecordak story.

C'JBRADLEY
CAsH
ier
November

pan
° MUsionri
t -ratlon
S
lsnooSt5
et
°enfciemen;
aiifornia
a cash

l e t ^ ° e n tly

one of

Prepar-în„ ^ e c°operan

Recordak Corporation (Subsidiary o f
Eastman K odak C om pany),
444 M adison Avenue, New Y ork 22, N . Y .

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Federal Reserve Bank of St. Louis

Cj~3:p-Q
.

^ler

^R E C C P E >M (
(Subsidiary of Eastman Kodak Company)

originator of modern microfilming—
and its application to banking systems

Recordak’’ ’ is a trade-mark
Northwest ern Banker. March, 1955

I S

PART

Here is an example which proves the error in the cliche
"Beauty is only skin deep". While eye appeal is quite apparent there's
even more beauty in the efficient up-to-date methods built into this
small bank interior design.
With this modernization comes the profitable new business attracted
by these new facilities.
We'd like to show you how modernization can improve your operating
efficiency and attract new business for you. Whether yours is a small
project or a large one, your request will receive immediate attention.
No obligation, of course.

CH AR LES O- FAIRMAWI
B A R N E S

O F F IC E

B U I L D I N G

Designers
Digitized forNorthwest
FRASER ern Banker, March, 1955
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Federal Reserve Bank of St. Louis

and

•

P H O N E

Builders

3 4 » 4

•

**OV*». IWIC.
L O G A N S P O R T ,

Modern

Banks

I N D I A N A

/Pear E d ito r

Oldest Financial Journal West of the Mississippi

IN THIS MARCH, 1955, ISSUE
The following letters are from
Northwestern Banker readers. Your
views and opinions on any sub ject are
welcome in this column.
“ Best Banking Magazine”

61st Year

N o. 812

EDITORIALS
12

Across the Desk From the Publisher

7
8
15
17
18
20
21

Dear Editor
On the Cover
Frontispage— Modern Traffic Problems
A Chicago Trip
I ’m H appy to Answ er Your Questions Concerning the Small
Business Administration . . . W endell B. Barnes
Eliminate Long W aitin g Lines
Profitable Opportunities Overseas for American Banks . . .

“ A copy of the kitten picture appearing in
your February issue will certainly be appre
ciated by this interested reader of your fine
magazine.
It is appropriately entitled
‘Adorable’ and this from a person who pre
fers dogs to cats!”

22
23
24
30

News and Views o f the Banking W orld . . . B en H aller, Jr.
Bankers You Know— Rollin O. Bishop
W a lk -U p W indows Help Everyone
W h a t’s New . . . for Banks and Bankers

Mrs. Ruth A. Beschnidt, Busi
ness Development Department,
Chase National Bank, New
Y orle, New Y orle.

39
40

W h a t About Mutual Funds? . . . H om er B. Park
How Would You Improve These Bond Portfolios? A N o r t h
w e s t e r n B a n k e r S u rvey
Treasury’s Successful Refunding W ill Influence Investment M ar
ket . . . Raym ond T rig ger

“ I don’t want you to buy a larger size hat
but I do want to say that in all the years
I have known you, you continue to publish
the best banking magazine in the country,
the N orth w estern B a n k e r .”

Charles C. Kuning, Vice Presi d e n t, American National
Bank
Trust Company, Chi
cago, Illinois.

“ Interested Reader”

FEATURE ARTICLES

H en ry W . R iley

BONDS AND INVESTMENTS

“ Kitten With Broom ”
“We would appreciate receiving three
copies of the kitten with the broom which
appeared in the February N orthw estern
B an k e r .”

INSURANCE
Keys to Selling— Confidence Plus Acts o f Faith . . . A rth u r D.

Brunk

STATE BANKING NEWS

J. McDaniel, Iowa Litho
graphing C o m p a n y , Des
Moines, Iowa.

Minnesota News
Twin City News
South Dakota News
Sioux Falls News
Montana N ews
North Dakota News

“ For Two Grandsons”
“ I would be pleased to receive two of the
pictures appearing in the February issue of
N orthw estern B an k e r entitled ‘Adorable.’
I plan to frame the pictures for two' of my
little grandsons.”

A. A. Jackson, Cashier,
Farmers Savings Bank,
Kalona, Iowa.

Fred S. Hilpert, Vice Presi
dent, The Farmers and M er
chants National Bank, Los
Angeles, California.

(Continued on next page)

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Federal Reserve Bank of St. Louis

77
78
84
85
87
96

Nebraska News
Omaha News
Lincoln News
St. Joseph News
Iowa News
Des Moines News

OTHER DEPARTMENTS
Ralph Eastburn Named Chairman o f Group 11, Iowa
J. A . Rohwer To Head Group 1, Iowa
In the Directors Room
Conventions
Can O ld-Age Payments Be Recovered from Recipient Now Own
ing House?— Legal Questions and Answers

90
93

101
101
102

“ Many Interesting Tilings”
“ I enjoyed receiving the February issue
of your good N orthw estern B an k er , and
among the many interesting things it con
tained was a picture of a kitty-cat looking
around a broom, and several of my asso
ciates to whom I showed it requested that
I write for a half dozen extra copies, which
I know will be greatly appreciated.”

65
68
73
73
74
75

N O RTH W ESTERN BANKER
306 Fifte en th S t ., Des Moines 9, Io w a , Telephone 4-8163

C lifford

S ecretary

A ssocia te E ditor

K. F ree lan d

E ditor
Ben J .

M ary Lou M urphy

W a lt e r T . P ro cto r

De Puy

A ssocia te P ublisher
M alcolm

Circulation D ep artm ent

A ssocia te E ditor

Publisher

D aryl F. V isse r

Zorah P en der

A d vertising A ssistan t

Field R ep resen ta tive
A.

Elizab e th Cole

A u ditor
H a lle r ,

J r.

Lemieux

Field R ep resenta tive

H elen O 'D e a

A l Kerbel

N EW Y O R K O F F IC E
Frank P. S ym s, V ice P re sid en t, 505 Fifth A v e ., Su ite 1806

M U rra y H ill 2-0326

DE PUY PUBLICATIONS: Northwestern Banker, Underwriters Review,
Iowa-Nebraska Bank Directory
Northwestern Banker, March, 1955

S u ccessfu l ” M o to r Itu u k **

MOTOR B A N K — Shown above are four drive-in tellers which are a part of the new
Motor Bank opened by the National Bank of Tulsa recently. There are two additional
walk-up windows near the entrance.
Probably the most unique feature of the banking arrangement is the pedestrian tunnel
connecting the bank with the Motor Bank. The tunnel, which has been ruled a “ hallway
between banking rooms,” permits the Motor Bank to be actually a part of the main bank
and thus does not constitute a violation of non-branch bank laws that exist in Oklahoma.
The tunnel is 262 feet long.

N AVERAGE of 200 persons per
day have made use of National
Bank of Tulsa’s new Motor Bank dur
ing the first seven days of its opera
tion, according to E. R. Lindsey, as
sistant cashier, who is in charge of
this new service.
The Motor Bank, equipped with four
modern drive-up and two walk-up tell

er windows, was opened to the public
recently and more than 2,000 people,
including city officers, business men,
civic leaders and out-of-town bankers,
viewed the new facility during the
hours from 6:00 to 8:30 p. m.
This new facility, which occupies
5,765 square feet of space in the new
six-story National Autoramp at 4th

“ We like doing business with
the R oyal”

Canada’s largest bank can
help find the answers to your
customers’ questions about
business in Canada. We provide
American bankers with assistance
in securing information on sales,
manufacturing, financial and
production opportunities.
You can obtain this
assistance by writing:
Business Development Dept.,
at Head Office in Montreal.
O v e r 8 0 0 b ra n c h e s in C a n a d a , the W est In d ie s , C e n tra l
an d South A m e ric a , N e w Y o rk , London an d P aris.

TH E R O Y A L B A N K
OF C A N A D A
N ew York A g e n c y — 68 W illia m S tre e t, N ew York 5, N .

HEAD OFFICE: MONTREAL • CANADA'S LARGEST BANK

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Banker, March, 1955
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Federal Reserve Bank of St. Louis

and Cincinnati, is connected with the
bank building proper by a 262 foot
pedestrian tunnel, built at a cost of
$80,000 and is unique in Oklahoma
banking, and offers complete accom
modations for most transactions.
The National Autoramp and the Mo
tor Bank are operated separately. Ar
rangements have been made to allow
NBT customers one hour free parking
in the 412 car capacity Autoramp
while transacting their banking busi
ness.
Completion of the Motor Bank and
the tunnel marks another step in the
$2,500,000 expansion p r o g r a m an
nounced by President Bradshaw in
1953. With the 12-story addition, Na
tional Bank of Tulsa has become the
largest office building in the state.
ON TH E COVER
Last month young men and women
from banks all over North Dakota at
tended the annual School for Junior
Bankers conducted at the University
of North Dakota in Grand Forks by
the university in conjunction with the
North Dakota Bankers Association.
Pictured on the front cover of this
issue are two members of the distaff
side of banking with officials of the
school. Left to right are: B. P. Mc
Dermott, director of the school and in
stallment loan officer in the First Na
tional Bank, Grand Porks; Marjorie
Nelson, Minnesota National Bank,
East Grand Forks, Minnesota; Thos. J.
Clifford, dean of school of commerce,
University of North Dakota, and
Bonnie Christie, Ramsey County Na
tional Bank, Devils Lake, North Da
kota.
For further details on school, turn
to page 75.
P h o e n ix P r o m o t io n
John H. Rhuart of the mortgage
loan department of the Valley Nation
al Bank, Phoenix, Arizona, has been
promoted to assistant vice president
and administrative assistant to Ralph
E. Bruneau, vice president in charge
of that division.
D E A R E D IT O R . . .
(Continued from page 7)
‘‘ Four Extra Copies”
“W ill you please send us four extra copies
of the picture 'Adorable’ appearing in the
February issue? Thank you.”

E. W. Buppelt, Buppelt $
Kimball, Attorneys at Law,
Grundy Center, Iowa.

“ Cat and Broom”
“ Please send us two more pictures of the
‘Cat and Broom’ from the February issue
of N orthw estern B anker ,.”
P. Kitzberger, Vice Presi

dent, State Bank o f New
TJlm, New Ulm, Minnesota.

Let th ese sp ecialists
p ro vid e the inform ation
you need !

In making commercial loans, you naturally want the
most pertinent, up-to-date information available to
help you reach sound decisions. That’s where we can
help you. The man from The First can put you in
touch with the greatest body of specialized informa
tion in the field.
Thanks to our Divisional Organization, the lending
officers of The First can provide you with intimate,
firsthand knowledge about current trends, problems
and markets in all industries.
You see, our Commercial Department is composed
of 10 Divisions, each serving a small group of spe
cific industries. The officers in each Division are

J ames B. F o rgan , Vice-Chairman

specialists who, through years of close contact with
their particular industrial fields, have an intensive
knowledge and understanding of them.
The services of these Divisional officers are avail
able to our correspondents through our Division F
— whose responsibility it is to bring this specialized
knowledge to you.
This is just one of the many correspondent services
of The First National Bank of Chicago. If you would
like to talk over the advantages of a correspondent
relationship with us, just write, wire or phone us
today. A man from The First will call on you at
your convenience.

E dw ard E. B r o w n , Chairman of the Board
H omer J. L ivingston , President
W alter M . H eym an n , Executive Vice-President

H ugo A. A nderson , Vice-President

G aylord A. F r e e m a n , J r ., Vice-President

G uy C . K iddoo , Vice-President

H erbert P. Sn y d e r , Vice-President

The First National Bank of Chicago
D earborn, M onroe and C lark Streets

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Federal Reserve Bank of St. Louis

MEMBER

FEDERAL

Building w ith Chicago since 1863
DEPOSIT

INSURANCE

CORPORATION

Northwest ern Banker, March, 1955

A n n o u n ce D en v er D rom i»/ions

Mack Switzer, widely known radio,
advertising and public relations man,
has been named advertising director
for the bank. Mr. Switzer is a veteran
of 15 years with Denver radio and tele
vision stations and advertising agen
cies.—End.

Bank of America Promotes

PROMOTION'S— Elwood M. Brooks, president of the Central Bank & Trust Company,
Denver, is shown congratulating Elvin R. Stiles, oldest of the newly promoted officers.
Others shown, left to right, are Don F. Delano, T. Arthur Williams, William E. Trout
man, James J. Guse, Vernon T. Walker, Clarence L. Johnson, Ray E. Harrington and
Harley N. Patton, Jr.

ROMOTIONS came to 11 men at
the recent meeting of the board of
P
directors of The Central Bank and
Trust Company of Denver. Three new
officers were named: Clarence L. John
son to the post of auditor, and James
J. Guse and Ray E. Harrington were
made assistant cashiers. Four were
promoted to vice presidents: Leo Van
Dittie, T. Arthur Williams and Don

F. Delano of the correspondent bank
department, and William E. Troutman.
Four others were named assistant vice
presidents: Dave Auston, Harley N.
Patton, Jr., Vernon T. Walker and
Elvin R. Stiles.
Central stockholders also approved
the issuance of 50,000 shares of new
stock to present stockholders at the
rate of $15.50 per share.

Three officers of Bank of America
were promoted to assistant vice presi
dent in the San Francisco headquar
ters office, it was announced recently
by Frank F. Risso, vice president and
personnel relations officer.
They are Richard A. Gock, assigned
to business development department;
Clifton D. Terry, named to controllers
department; and Raymond R. Righetti,
appointed to installment credit loan
department.

Elected at New York
Directors of Chemical Corn Ex
change Bank, New York, have elected
J. Kenneth Townsend vice president
and Herbert W. Nannen treasurer, it
was announced recently by N. Baxter
Jackson, chairman. Mr. Townsend,
who has been personnel director, will
continue in that capacity. He served
as president of the New York Chap
ter, American Institute of Banking,
during 1953-54. Mr. Nannen was ad
vanced from assistant vice president.

Member Federal Deposit Insurance Corporation

BANKING
HEADQUARTERS
AT THE CHICAGO
UNION STOCK YARDS

Agricultural and
Livestock Financing
fo r 8 7 years

___________________ i
DAVID H. REIMERS
Chairman of the Board & President

Harold P. Johnston • Alden S. Bagnall
Ivan E. Bennett • Paul T. Betz

d / ïie

LIVE STOCK
BANK

* A ir / i o n « f

Vice-Presidents
E S T A B L IS H E D

Gordon P. Fairman • Frank J. Itzel
James L. Johnson • Joseph E. Lisek
Assistant Vice-Presidents

Banker, March, 1955
Digitized forNorthwestern
FRASER
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Federal Reserve Bank of St. Louis

1868

U.S. Governm ent Bond Service • Savin g s & Personal Loans
Real Estate Mortgage & Trust Departments

Helping bankers help businessmen is a big part o f our job.

W hen another viewpoint would be helpful...
C&//’f/OY/1/ vY/7
Custom ers can— and do— come up with ques
tions o f every kind. Happily you are equipped to
resolve most o f them in rapid order. But occasional
ly a special question arises where additional aid or
another viewpoint would be helpful.
That's the time to call your man at the Irving.
That immediately brings you his broad experi

/¡RI/fAfe-/
ence and the combined talents o f experts in every
field o f commercial banking plus the facilities o f a
world-wide network o f correspondents.
• • •
Your man at the Irving is particularly anxious
for you to realise that any question— no matter
how complicated— will be welcomed. Just get in
touch with him— he’ll be glad to talk with you.

IRVING TRUST COMPANY
One Wall Street, New York tj, N. Y.
Capital Funds over $1 2 3 ,000,000
Total Assets over $1 ,400 ,000,000
W illiam N. Enstrom , Chairman of the Board
R ichard H. W est, President
Domestic Banking Division, N olan H a r r ig a n , Senior Vice President in Charge

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Federal Reserve Bank of St. Louis

M EM BER

F E D E R A L D E P O S IT I N S U R A N C E C O R P O R A T I O N

Northv/estern Banker. March. 1955

12
(D sxü u

Q la h lc

{B&l &s l :

Presiden t, Bank o f A m erica, San F rancisco.

Across tlie Desk
From the Publisher
(DsucOu S i n c l a i r

(O s jik d u :

In your annual report to the stockholders of
your bank, you stated that, “ savings and time
deposits increased $345,173,403 to a total of $4,078,274,433, with a total of 3,761,000 savings ac
counts with an average balance of $894.”
Sometimes bankers forget that their total de
posits, especially in the savings division, are fre
quently of a small average amount as your figure
of $894 indicates, but in the aggregate the amount
is very large. Also, if an individual has a savings
account in a bank, he is likely to transact other
business with that same institution, such as hav
ing a checking account, a safe deposit box or se
curing a loan when needed.
The N o r t h w e s t e r n B a n k e r believes, as we
know you do, Mr. Beise, that “ mighty oaks from
little acorns grow” and that the individual with a
small balance is a desirable customer to invite into
your bank, because he is potentially a better
“ prospect” for your other departments if you can
get him started in your savings division or in any
other branch of your bank.
It is good banking practice not to overlook the
“ little fellow ” at any time.

(D sjcV

dw w uL

Ç . (Bju a a Il :

S ecreta ry o f Com m erce o f the U nited S tates
W ashington, D. C.

E ditor, H arvard Business R eview
Cam bridge, M assachusetts

In your discussion of the future o f the United
States you emphasized that our population is still
growing very rapidly.
As you mentioned, “ Our people continue to
grow in numbers. In 1954, 2.8 million persons
and 500,000 new households were added to the
population of continental United States. We are
now a nation of 164 million, living in over 47 mil
lion households.
“ W ith disposable personal income now running
at a record rate, our people in their capacity as
consumers have the opportunity to improve their
high standard of living. Consumers’ aggregate
demands, bolstered by the sustained high volume
of business investment, will offer opportunities
for expansion and profit to producers and mer
chandisers alert to the potentials which our vast
market affords.”
More people in the United States means in
creased needs for new homes, new household
equipment, and all the other things that go into
creating a family unit, in what is still the greatest
nation on earth.
As the N o r t h w e s t e r n B a n k e r has pointed out
many times, barring a third world war, the out
look for 1955 and the years ahead looks very en
couraging indeed.

In the Harvard Business Review, Mr. Bursk
you discussed “ The art of mismanagement” and
developed some very interesting points.
On the negative side, you mentioned that Ameri
can businessmen in the past have always been
notable mismanagers, that is, up to the present
generation. Now, today, it is your opinion that
businessmen are non-mismanagers.
Likewise, as you pointed out, avoidance of bad
management isn’t necessarily good management.
Management to be good must be positive to mean
anything.
Your main emphasis, as the N o r t h w e s t e r n
B a n k e r sees it, is not just to avoid mistakes, but
to put some drive and force into what manage
ment is doing because, “ that built America to its
present greatness.”
Certainly, everything that you have to say, Mr.
Bursk, is applicable to the banking business and
to the successful banker, who knows that today
he must not only be a good salesman for his own
institution, but likewise must put the stimulating
desire into his other officers and employees to se
cure more accounts for his bank, and offer more
service to his customers.
“ It has been easy for businessmen to be pessi
mistic or even bitter” , as you say, “ when they con-

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Federal Reserve Bank of St. Louis

13
template the growing power of labor and the ex
panding functions of government.
“ But the time for ‘defense’ is over. It’s time
for business to get up on its hind legs and do
something. Management now has reason to throw
off any guilty conscience, any inferiority complex,
to stop reacting defensively, to adopt a new atti
tude of confidence, to take a bolder stand.
“ The management group has increased produc
tivity by its own planning and decisions, by its
own organization of the work— not labor, not gov
ernment, but management. So, I say, there is a
real chance for management to develop confidence
— the kind of confidence which inspires building.”
The management group, of which bankers are a
part, have definitely increased our production in
this country, and they have no reason now to
apologize or take a back seat for anyone. But
bank management, like business management,
must step forward with confidence if it is to do
its part in the great economic period which is just
ahead o f us.

Q ílcül. J'M xL J '. J'h fu im s L :
P residen t, Republic N ational Bank
Dallas, T exas

The N o r t h w e s t e r n B a n k e r congratulates you
upon being chosen as “ Salesman of the Year” by
the Dallas Sales Executive Club.
Two other bankers in your city have received
this award in the past and they are Mayor R. L.
Thornton, Sr., chairman o f the Mercantile Na
tional Bank, and Ben II. Wooten, president of
First National Bank.
Not so many years ago, bankers were not
thought of as “ salesmen,” but times have changed
and so have bankers and banking.
Every banker should be a salesman for his
institution, because he has three wonderful things
to sell; (1) credit, (2) thrift and (3) eventual
financial independence.
As “ Salesman of the Year” we salute you, Mr.
Florence.

(D&W p

ÜJí W jo m l J iM h lq k L :

D em ocratic S enator fr o m A rkansas.

One of the m ajor objectives of the Senate com
mittee on banking and currency is your plan to
investigate the stock market, which you have
called a “ study on a friendly basis.”

eral Reserve Board should increase margin re
quirements to more than 60 per cent, you should
make a special study of human nature.
The stock market in the final analysis, is noth
ing more nor less than the reflection of the buy
ing psychology of the general public, and if you
want to investigate that division of human think
ing, go right ahead; but you’ll have to go beyond
the Dow-Jones indexes and the percentage of
margin requirements imposed by a banking board.
How people think, how they feel, and how they
respond to national and international programs,
plus news from around the world, plus legislation
in Washington, all have a final bearing on whether
the average citizen will buy or sell stocks listed
on the New York Stock Exchange.

(D su a x, U J11L (D ju a c m L :
W rite r and A u th or o f “ The S tory o f P hilosophy.”

In an article of yours on “ The Ten Greatest
Thinkers,” you mentioned Plato, who lived in 327
B.C., as one of the great men of all time, and
especially so because of his book “ The Republic.”
Tn this book, he discussed the problems of a
monarchy, democracy, aristocracy, dictatorship
and communism.
Plato mentioned the faults of various forms of
government including a democracy and said that,
“ all forms of government destroy themselves by
carrying their basic principle to excess.”
In your analysis of what Plato said, Mr. Dur
ant, you emphasized that the time should come
when our local and national government officials
should be trained for their positions, rather than
just picked at random by a popular vote. As you
put it, “ until philosophers become kings, or until
kings become philosophers, states will not cease
to suffer from these ills. I think Plato meant that
those who rule states should be prepared as spe
cifically and thoroughly for ruling as men are
prepared for medicine or law or the ministry.
How absurd it is that for these professions we
require specific technical preparations, but for
ruling a city we require only popularity and the
proper friends! I hope by the time I die we shall
have a civil academy corresponding to our mili
tary and naval academies so that some day we can
have a body of civil servants representing the
finest intelligence available.”
Certainly the millennium will have dawned if
the suggestion you make should ever come true.
As a practical matter, it is doubtful if it ever will,
although your idea is a most valuable one indeed.

A fter you have studied all of the mechanics of
the stock market, as it relates to ratios of prices
and earnings of products, plus whether the Fed

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Federal Reserve Bank of St. Louis

Northwest ern Banker, March, 1955

Just in case you had
forgotten, or overlooked,
the fact that our speedy,
efficient "round-the-clock"
Correspondent Service
is serving an increasing
number of banks. We'd wel
come the opportunity
of "numbering" yours
among them.

Central National Bank
and Trust C o m p a n y , Des M oines, Iow a

member

federal

deposit

Northwestern Banker, March, 1955

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Federal Reserve Bank of St. Louis

in su ra n ce

c o r p o r a t i o n

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Federal Reserve Bank of St. Louis

Northwest ern Banker, M arch , 1955

T h i s is t h e p r o f i l e o f a b a n k
t h e TIM E marble and
steel disguise it. But after a
visit or two to any bank you begin
to see its true profile.
It may be the face of a teller, a file
clerk, a loan officer or— the presi
dent. Whoever it is, this much is
certain— the profile of a bank is al
ways the face of the man or woman
in the bank you know best.
W hy?
Because banks are people. Tellers’
cages, vaults, iron gates— all the
familiar symbols of banks — are
nothing more than tools used by

OST OF

Northwestern Banker, March, 1955

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human hands to get the job done.
Yes — banks are people. More to
the point, they are conscientious
professionals who see banking as a
career rather than just another way
to earn a living.
To Mr. and Mrs. America this
says, ‘ ‘Your money (along with your
country’s financial tradition) is in
good hands.”
It also means that the business of
putting money to work—banking’s
basic function — is administered by
responsible professionals with a keen
sense of trade competition, and a

highly developed awareness of cus
tomer service.
These people are America’s banks.
Bank buildings, however simple or
ornate, are only their workshops. It
is their humanness that transforms
facades of marble and steel into faces
of friendliness and warmth.
Chase National Bank is proud of
the part it is playing in American
progress.
*
*

T h e C H A SE N ation al Bank
OF T H E C IT Y OF N E W Y O R K
(Member Federal Deposit Insurance Corporation)

Chicago

Members of the Dallas County Bankers
Association Are Helping to Develop
Their County’s 4-H Youngsters Now
for the Years Ahead When Tech
nology of Advanced Farming
W ill Demand the Know-How
of Trained Agriculturalists.

ACH year on a crisp, midwestern
fall morning, a group of eager,
wide-eyed youngsters meets in
Adel, Iowa, to board buses headed for
the International Livestock Show in
Chicago.
These school children are members
of the year’s Blue Ribbon 4-H Club—
the club that has worked hard, in di
rect competition with the other 4-H
Clubs in the county, to build up points
during the 12 preceding months. And
their trip is made possible by the in
terest in agricultural advancement in
their county by the Dallas County
Bankers Association.

Full Year’ s Hard W ork

All the 4-H members in the various
clubs in the county start anew in Octo
ber of one year, pointing toward a trip
to Chicago in November of the next
year. Their work, then, must be con
sistent to pay off.
James Kenney, Dallas County Ex
tension Youth Assistant who works
with the different clubs in the county,
has “Over-all Program Report Sheets”
on which are listed many items and
stages of accomplishment for a specific
4-H Club, along with the points award
ed for completion of each stage in the
program. Points are dependent upon
regularity of monthly meetings, per
centage of attendance at meetings, per
centage of members completing special
projects, number of members in “Offi
cers’ Training School,” attendance at
county-wide meetings, etc. Other cred
its are given for special work in soil
conservation, farm electrical activity,
judging activities and others.

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Federal Reserve Bank of St. Louis

To be eligible for any of the awards,
a club must secure a total of at least
2,000 points, the club winning the
over-all program receiving a two-day
trip to Chicago, the second team win
ning $15; the third, $10, and all others
tallying more than 2,000 points, $5
each.
Winners of the recent trip from
Adel to the “windy city” are members
of the Sugar Grove 4-H Club, and they
left the Dallas county seat at 8. a. m.
Thanksgiving day, accompanied by
Tom Smith, cashier, Brenton State
Bank, Dallas Center, and Bob Goodson, manager, Redfield office, Dallas
County State Bank, Adel, as repre
sentatives of the Dallas County Bank
ers Association.
Glenna Hawbaker, one of the 4-H’ers
who made the trip, said in her report

of the trip, that the “trip actually
started in October of 1953,” and that
all year long the Sugar Grove group’s
members kept urging each other to at
tend meetings and complete their proj
ects, as well as make special showings
at demonstrations, county-wide meets,
etc.
The Blue Ribbon winners have
memories of the following experiences
now as a result of their intensive drive
to complete their extensive work for
the year: Thanksgiving dinner at the
bus depot in Davenport, “ This Is
Cinerama” at the Palace Theatre in
Chicago, Don McNeill’s famous radio
“Breakfast Club,” a visit to the Board
of Trade, a look at Chicago from the
A C H IC A G O T R IP . . .

(Turn to page 34, please)

BLUE-RIBBON W IN N IN G 4-H CLUB in Dallas County this past year was the Sugar
Grove Club, some of whose members are shown here. These youngsters, whose diligent
work on their 4-H projects for one whole year topped that completed by other clubs in
the county, won a trip to Chicago recently for a two-day excursion which included most
of the city’s sights. The trip is sponsored by the Dalias County Bankers Association.
Northwest ern Banker, March, 1955

18
I

‘h i

Hiippif

to A

Î 'imeeeniatj
Sm all II a si a ess

T IS most gratifying to have the opportunity of an
swering some of the questions which must arise in
the minds of bankers as to the Small Business Admin
istration.
Why did Congress create this new federal agency?
What is the philosophy behind its operations? What are
its functions? Does it compete with the private banking
system?
These and other questions I shall try to answer so that
the area of understanding may be increased and the area
of misunderstanding be reduced.

Private Enterprise

It is generally well known that one of the primary ob
jectives of the Eisenhower administration has been to
encourage private enterprise and to decrease government
business activities which compete with private business.
The present national administration has always recog
nized the superior capability and efficiency of our private
banking system and the outstanding contribution of the
banks to the basic economic stability of the nation.
On July 30, 1953, Congress created the Small Business
Administration with the concurrence and approval of the
President. The expressed broad purpose of the agency is
to advise and assist small business in many ways and
generally to serve as its champion.
In reliance upon the known capabilities and desire of
private banks to lend financial assistance in appropriate
cases, the law provided that the Small Business Admin
istration could not make any loans unless it were shown
that a bank participation was not available. In further
ance of its objectives, the act created a loan policy board,
composed of the Secretaries of the Treasury and Com
merce and the Administrator of the Small Business Ad
ministration, with the administrator acting as chairman.
The board implemented the requirements of the law
by further providing that financial assistance could not
be granted by the Small Business Administration unless
proof of refusal of the required credit has been obtained
from the applicant’ s bank of account or a correspondent
bank, or any other lending institution with capacity ade
quate to cover the requested loan. We have gone further
and required proof of the fact that the desired funds do
not appear to be obtainable from any other known sources
Northwestern Banker, March, 1955

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of credit serving or operating in the business community.
Thus, it will be clearly seen that the Small Business
Administration was created and intended, among other
things, for the purpose of cooperating with private banks
and supplementing their lending activities in the small
business field. The Small Business Administration does
not have the slightest intent to compete, in any way,
with private lending institutions. We feel that our atti
tude in this respect is borne out by our loan record.
At the inception of our lending program, about a year
ago, only approximately one-third of our loans were being
made in participation with banks. Since that time we
have continuously endeavored to explain our objectives
to the private banking system and to work with them in
serving their customers’ needs.
As a result, our current records show that more than
two-thirds of our loans are now shared by local banks.
As of November 30, 1954, the Small Business Administra
tion had approved 1,019 business loans to small firms,
aggregating $55,169,654, of which 694, totaling $39,403,391,
were bank participation loans, and only 325, amounting
to $15,766,263, were made directly by the agency.
Bank participation loans are preferable because of the
fact that the local banker generally has much more inti
mate knowledge of the transaction and the capabilities
of the borrower. In practice, our bank participation pro
gram is carried out most actively in all phases of a loan.
When a proposed borrower first calls at one of our offices,
he is informed of the requirements of the law and our
policy and is advised that it will be necessary for him to
endeavor to obtain the required funds from his local
banker.
Letter Needed

If the bank or its correspondents are unable, for some
reason, to make the desired loan, the applicant must ob
tain and furnish the Small Business Administration with
a letter to that effect. In the event the bank can make
the loan, then the agency has served its primary purpose.
On the other hand, if the bank is unable to grant the
entire credit, but is interested in a participation with the
Small Business Administration, then an application is
filed with the bank on the form provided for that pur
pose. The bank assembles and prepares all requisite

19
Q

The Small Business Act of 1953 provides that all loans
made by the Small Business Administration must be of
such sound value or so secured as reasonably to assure
repayment thereof.
Such a provisison obviously requires an applicant to
show adequate collateral, experienced and satisfactory
management, and a good past earnings record and future
prospects. In other words, the only credits which we
consider to be of sound value are those in which the
records of the applicant furnish reasonable assurance of
his ability to repay the desired loan from the profits of
his business.

u e s t i o n a

Collateral Desired

By Wendell B. Barnes,
Administrator, Small Business Administration

credit and other pertinent information and has immediate
supervision of the transaction until such time as the
forms are forwarded to one of our 40 local field offices
for processing.
On July 2, 1954, Small Business Administration region
al directors were authorized to approve, without refer
ence to Washington, loans of not more than $50,000 in
instances where private banks have agreed to participate
to the extent of not less than 25 per cent of the loan,
provided that at least one-half of the bank’s participation
represents new or additional credit advanced by the bank
to the borrower.
In all other cases, the application is transmitted to
Washington for final consideration and decision. Thus,
it will be seen that the bank conducts most, if not all, of
the dealings with the applicant, its customer, which is
certainly most appropriate.
Also Aids Banks

If a participation loan is approved, in most cases the
bank—not the government—handles the servicing and all
other details of the loan. By these procedures, the Small
Business Administration believes that it is assisting small
firms in the most effective way—by helping them to es
tablish or continue a satisfactory line of credit with their
own local banks and by cooperating with banks as they
carry on the important function of serving their custom
ers and their community. Additionally, such a program
should enable the banks to develop more profitable ac
counts, and certainly will result in stimulating the growth
of their customers’ businesses.
Under the law, the Small Business Administration is
authorized to take not more than 90 per cent of a par
ticipation loan. On deferred participations, the agency
agrees to purchase its share of the loan, at any time,
upon the bank’s request. The majority of shared loans
are made on a deferred basis, and we feel that the gov
ernment will rarely ever be called upon to advance its
portion of such a loan. Additionally, we also make imme
diate participation loans, in which case both the bank
and the Small Business Administration lend their agreed
share at the time the loan is closed. In some few in
stances involving immediate participation, the agency has
agreed to service loans.

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Federal Reserve Bank of St. Louis

Additionally, we feel that an applicant should offer col
lateral which would be adequate to secure a proposed
loan in the event some unforeseen difficulties or circum
stances were to result in his inability to repay the credit
from earnings. Furthermore, we believe that a proposed
borrower should have a substantial equity investment in
his own business, represented by fixed or other assets
which would constitute acceptable security. However,
in each case presented to us, we make every effort to
find a way in which a loan can be made to a deserving
small businessman, provided the desired credit will actutally benefit the borrower, the community and the econ
omy.
Obviously, because of statutory and policy restrictions,
it is not possible for the Small Business Administration
to approve every application for a participation loan. In
some cases, we have declined loans which would be used
primarily to reduce the exposure of a creditor. In other
instances, the type of business conducted by the applicant
is one which is not eligible for consideration by the
agency. Again, there are cases in which we feel that the
applicant is unable to meet the credit requirements of
the Small Business Act of 1953.
However, when a local bank has recommended a loan
and agreed to participate therein, it has been our expe
rience that such credits nearly always meet our legal
and policy standards and constitute sound loans.
In participation loans, the bank fixes the interest rate
to be charged. Unless our loan policy, the interest on
the government’s share of such loans must be at least 5
per cent. The agency’s loan policy also established an
interest rate of 6 per cent per annum on direct loans. The
purpose of that requirement was to avoid the possibility
S M A L L B U S IN E S S E S . . .

(Turn to page 32, please)

A TYP IC A L BU SINESS — The Universal Appliance Shop in
Toledo, Ohio, is a typical small business firm which has benefitted by receiving loans from the Small Business Administration.
Many firms across the nation today owe their existence to this
agency.
Northwestern Banker, March, 1955

iVcif* C o u n ters unti P o r ta b le Cash B o x e s —

Elim inate Confi W ait inf/ Lines
New Innovation Does Away With
The Face-Beliind-the-Cage Atmosphere

NEW type teller counter, de
signed to create friendlier at
mosphere for transactions of
banking business, is now being intro
duced in California by the Bank of
America.
Vice President Frank M. Dana, the
bank’s supervisor of operations, says
the innovation is expected to speed
customer service in rush hours and to
permit a flexibility of operations on
the teller line never before achieved.
One of the most striking features of
the new counter is its elimination of
the cage-type teller windows, a tradi
tional feature of bank interiors since
banking’s beginnings. The new coun
ter has no windows or dividers of any
kind, and runs in a continuous, un
broken line the length of the lobby.
Tellers may take positions at any
point behind the counter by wheeling
into place a large, portable cash box.
This condition permits instantaneous
addition or replacement of tellers. Mr.
Dana also says that because of this
factor the counter, already in opera
tion in several branches of his bank,
has proven beneficial in the elimina
tion of waiting lines in lobbies. In
stallation is now planned for a num
ber of new branch buildings, he added.

ice being rendered at that station.
Transactions are made across this
replaceable surface. A substitute tell
er may be brought into the same posi
tion in a matter of seconds, since cash
need not be checked out and only the
cash box and counter plate need be
exchanged.
The new counter was originated by

the City National Bank of Columbus,
Ohio. The idea was adopted by Bank
of America after a period of experi
mentation and modification to meet
local requirements in its area. First
tested in California in the Lake-Green
branch in Pasadena, it now is installed
or scheduled for installation in 28
branches of the bank.—End.

Simple in Nature

Actually, the counter is radical only
in its simplicity. It is topped by a
foot-high glass counter top that per
mits customers to observe all cashier
operations. This factor alone will do
much to eliminate the “face-behindthe-gate” atmosphere, which most of
the bank’s officials feel has been detri
mental to customer-teller relationship.
On the teller’s side of the counter
are no shelves or compartments oth
er than those in the portable cash box.
In order to signify the opening of a
new position on the line, the teller
fits over the counter top a transpar
ent surface plate bearing a sign with
his or her name and the type of serv
ern Banker. March, 1955
Northwest
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Federal Reserve Bank of St. Louis

ADDS V E R S A T IL IT Y — A teller at a Los Angeles branch of the Bank of America
demonstrates the attractive and efficient new type teller counter recently adopted by the
bank. The portable cash box enables Donna Norcross to open a new station on the teller
line at a moment’s notice.

O pportunities O verseas
for
A m eriean Hanks
W ritten E specially fo r
N orth w estern B an ker

B y H EN R Y W . R ILE Y
Treasurer
International Bank for
Reconstruction and Development
Washington, I). C.

. . and in the past few years a number
o f banks have intensified their efforts to
d evelop the con tacts necessary to expand
their foreign business on a sound and last
ing b a sis.”

Direct Participations In World Bank Loans
AM OU NT OF PRIV ATE
DOAN
PAR TIC IPATIO N
With the Bank’s Guarantee
$12 million Dutch Ship Loans: (July 15, 1947)
A group of 8 commercial banks and 2 savings banks
$ 8,100,000
$16 million Kingdom of Belgium Loan: (March 1, 1949)
New York Life Insurance Company
10,000,000
Bowery Savings Bank
2,000,000
New York Savings Bank
1,500,000
East River Savings Bank
1,500,000
Dollar Savings Bank of New York
1,000,000
16,000,000
TOTAL W IT H W ORLD B A N K G U AR AN TEE

$24,100,000

Without the Bank’s Guarantee
$7 million Royal Dutch Airlines (K L M ) Loan: (March 20, 1952)
Chase National Bank of New York
$ 3,500,000
$3,250,000 Pakistan Loan: (June 14, 1952)
Bank of America & Chase National Bank
997,000
$7.3 million Itutinga Loan (Brazil) : (July 17, 1953)
Westinghouse Corp. (Supplier)
1,047,000
$40.2 million Bank of Japan for Power (3 loans) : (Oct. 15, 1953)
Westinghouse Electric International & International
General Electric
6,143,000
$25 million Norway Loan: (April 8, 1954)
Bank of America & Philadelphia National Bank
2,016,000
$1.7 million Peru Loan: (April 12, 1954)
National City Bank of New York
250,000
£5 million ($14 million) Sui Gas Transmission Co., Ltd., Loan:
(Pakistan) (June 2, 1954)
Six eastern exchange banks (£645,000)
1,806,000
$7.5 million French W est Africa Railways Loan: (June 10, 1954)
J. P. Morgan & Co., Incorporated
609,000
$61 million Pacific Railroad of Mexico Loan: (Aug. 24, 1954)
Bank of the Manhattan Co. &
ChemicalBank & Trust Co. 2,420,000
$11.1 million Highway Loan to El Salvador: (Oct. 12, 1954)
Philadelphia National Bank
250,000
$5 million Banco de Fomento Agropecuario del Peru Loan: (Nov. 12, 1954)
New York Trust Company
748,000
$16.2 million Tata Companies of India (Power Loan):
(Nov. 19, 1954)
National City Bank of New York
1,364,000
$5 million Caja de Credito Loan (Agriculture) (Columbia) :
(December 29, 1954)
Bank of the Manhattan Company & First National Bank
of Boston
3,000,000
TOTAL "WITHOUT WORLD B A N K G UAR ANTEE

$24,140,000

GRAND TOTAL OF P R IV A T E PAR TIC IPATIO N

$48,240,000

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Federal Reserve Bank of St. Louis

ROFITABLE opportunities exist
abroad for American banks seek
ing to expand their service busi
ness and to diversify their loan and
investment portfolios on an interna
tional scale. Many of the banks are
aware of the possibilities overseas, and
in the last few years a number of
them have intensified their efforts to
develop the contacts necessary to ex
pand their foreign business on a sound
and lasting basis.
In recent months commercial bank
activities along these lines have been
reflected in the landing operations of
the International Bank for Recon
struction and Development—frequent
ly called the “World Bank.” Between
April and December, 1954, the bank
made 12 loans, and commercial banks
in this country participated directly in
eight of them. A group of British
banks participated in a ninth loan in
the period.
Before April, 1954, commercial banks
had participated directly in only three
of our loans, and various other types
of institutional investors, including
two manufacturing concerns, h a d
taken direct participation in three ad
ditional loans.

Just a Beginning

Total direct participation in our
loans since we started lending in 1947
amount to $48 million and they in
clude shares in 15 loans made in 12
countries. This is a modest showing
when compared to the 112 loans
amounting to more than $2 billion
O V E R S E A S O P P O R T U N IT I E S . . .

(Turn to page 36, please)

Northwest ern Banker, March, 1955

N ew s and Views
OF THE BANKING WORLD
By BEN H A LLER , JR ., Editor

bdul

m ajeed

ahm ad

NAMA (age unknown) of Mo

sul, Iraq, soon will receive three
booklets from The Hanover Bank,
New York, as a result of the letter
illustrated below.
The letter was not expressly ad
dressed to The Hanover Bank. The
envelope in which it was enclosed
bore only this marking: P.O. Box 33,
Church Street Station, New York 15,
New York.

UNIQUE LETTER received by The
Hanover Bank, New York, from foreign
admirer.

But P.O. Box 33, Church Street Sta
tion, is The Hanover’s postal box, and
the letter found its way to the desk of
Daniel B. Phelan, assistant manager,
in the bank’s foreign department.
Since the letter did not give the ti
tle of the book desired nor the age
of the writer, Mr. Phelan referred the
inquiry to the public relations depart
ment. Public relations was somewhat
puzzled, too, and checked its literature
lists for booklets that would fit the re
quest.
The department decided three of its
booklets, each aimed at a different age
level, would fill the bill. These were:
“How The Hanover Bank Helps Our
City” (grade school, published in
1951); “Banking . . . Today’s Career”

(college,

published

“America’s

E c o n o in i c

1953),

and

Horizons”

(adult, published in 1954). All three
had been offered here and abroad and
enjoyed wide distribution.
Mr. Phelan, soon to leave on a busi
ness trip to Europe, Asia Minor and
the Far East, unfortunately won’t get

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Banker, March, 1955
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Federal Reserve Bank of St. Louis

to Mosul. But when he visits one of
The Hanover’s correspondent banks in
Baghdad, he hopes officials there will
have found out for him:
1. The age of Abdul Majeed Ahmad
Alnama.
2. The exact title of the book he re
quested.
3. How he learned about The Han
over Bank of New York.
* * *
Ever hear of the president of a bank
appearing as guest star on a compet
ing bank’s television show? That’s ex
actly what happened in Chicago re
cently, on WBBM-TV. Harris Trust
and Savings Bank is the sponsor of
the weekly half-hour show “This Is
the Midwest,” which each Sunday
spotlights one of the basic industries
of Chicago. A “growth report” on
the industry is presented via film, stu
dio demonstrations and the appear
ance of a leading spokesman for the
industry being featured. When the
Chicago Association of Commerce and
Industry and the Columbia Broadcast
ing System, co-producers of the show,
decided to spotlight the Chicago bank
ing community, Harris Trust sug
gested that Homer J. Livingston, pres
ident of the First National Bank of
Chicago and president of the Ameri
can Bankers Association, would be
just the man for the job. The Harris
Bank invited Mr. Livingston, he ac
cepted, and the result, judging from
audience reaction, was one of the most
interesting of the “This Is the Mid
west” series to date.
Kenneth V. Zwiener, president of
Harris Trust, appeared on the pro
gram with Mr. Livingston and intro
duced him to the audience.
* * *
A speech by Tom Collins, wellknown Kansas City humorist who is
also publicity director for City Na
tional Bank & Trust Company, Kansas
City, Missouri, is quoted at length in
a book entitled “Speakers Are Lead
ers,” written by Nathaniel Edward
Reeid and recently released by Leader
ship Publications.
An excerpt from Mr. Collins’ talk
before the National Sales Executives
Convention in 1951 is included in the
volume as a model for public speakers.
* * *
Mackarness H. Goode, formerly man
ager of public relations and advertis
ing for Irving Trust Company, New
York, has joined Farley Manning As

sociates public relations agency in
New York as an account executive
and member of the plans board.
* * *
It is learned that Bank of America’s
colorful booklet. The California Trend,
is now available in limited supply to
businessmen and organizations inter
ested in the economic growth of Cali
fornia. Released to a controlled dis
tribution list during the bank’s 50th
anniversary late last year, the bro
chure gained a wide acceptance for its
vivid photographs of California at
work and the statistical surveys of
the state’s economy. Copies may be
requested from D. R. McBride, assist
ant cashier, public relations depart
ment, Bank of America NT & SA, 300
Montgomery Street, San Francisco 20,
California. There is no charge.
* * *
First National Bank of St. Louis has
prepared its first annual report to the
staff, it was announced recently by
President William A. McDonnell. The
four-page booklet entitled “How Did
We Do in 1954?” was mailed to all
First National employees at their
homes.
“ The purpose of this booklet is to
explain the year’s operation and finan
cial standing in a condensed and sim
plified version to the bank’s 970 em
ployees,” said Mr. McDonnell.
The inside pages contain a pictorial
story of how the bank earned $14.1
million gross income in 1954 and how
the income was used. It points out
how the $14.1 million dollars was re
duced to $1.2 million which was re
tained in the business after taxes, op
erating expense, employee benefits
and dividends had been paid.
The story explains how and why
stockholder dividends must be paid to
persons who h a v e invested their
money in the bank. And, finally, it
tells why a certain amount of money
must be held in reserve for future
growth and any possible emergencies.
The last page contains a pictorial
story of how $502,000 was spent in
1954 in “hidden pay” for employee
benefits such as pensions, hospitaliza
tion, social security and social activi
ties, together with a brief, simplified
account of the bank’s annual state
ment.
The 9 by 12 inch folder represents
the bank’s effort to explain the impor
tance of individual effort, and to keep
its employees informed on the bank’s
progress.—End.

B a n k er s Y ou K n o w

R ollin O. B ishop
President, American National Bank
St. Paul, Minnesota
“Held in high regard because of his straightforwardness.”

HE life of Rollin O. Bishop,
president of the American Na
tional Bank of St. Paul, Minne
sota, is the American success story of
a boy, who without the advantages of
a wealthy position, has through his
own character and ability brought
about the fulfillment of his life’s am
bition— to be a successful banker.
Born in Sheridan county, Kansas,
he was reared on his father’s home
stead in the western portion of the
state. In 1920 he married Clarice M.
Monteith. They have a daughter,
Marilyn Rose.
Mr. Bishop spent 1 2 years as an
assistant cashier of the Citizens State
Bank in Selden, Kansas. After serv
ing in that capacity, he spent the
next four and one-half years as a
Kansas state bank examiner, operat
ing out of Topeka. He was later
appointed chief examiner.
His career continued during the
next four and one-half years, when
he was employed in Kansas City,
Missouri, as a national bank exam
iner for the Tenth Federal Reserve
District. Following this, he served

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Federal Reserve Bank of St. Louis

six months in the Office of the Comp
troller of the Currency in its reor
ganization division in Washington.
D. C.
Washington continued as his home
for the next five years, as he was
named review examiner of the Fed
eral Deposit Insurance Corporation
in the problem case division. The
ten following years were spent in St.
Paul as supervising examiner for the
F.D.I.C. Ninth District.
From this position he was named
first vice president and director of
the American National Bank in June,
1948, succeeding to the presidency of
the bank in 1949.
In addition to this position with
the St. Paul bank, he is aUo execu
tive vice president of the Otto Bre
mer Company of St. Paul, having
served in that capacity for the past
five and one-half years. He is a di
rector of the American National
Bank of St. Cloud and of the Bank
of Willmar, both located in Minne
sota.
But his life is not devoted entire
ly to his banking interests, as he is

also active in many civic organiza
tions. He is a Past Master of the
Masonic Lodge, a trustee of the Meth
odist Church, president of the St.
Paul Rotary Club, and director of
the Y.M.C.A., Goodwill Industries
and the Salvation Army. He is a
member of the finance committee of
the St. Paul Athletic Club, an asso
ciate trustee of Hamline University,
a director of the Executives Club,
and a past director of the St. Paul
Chamber of Commerce.
In his spare time— when business
and civic interests will permit— Mr.
Bishop likes to feel the thrill of a
perfectly driven golf ball soaring up
ward from a tee. And it shouldn’t
be too long before weather permits
him to once more be out on the
course.
Mr. Bishop is held in high regard
by his associates because of his
thoughtfulness and consideration to
ward them. And throughout the
Ninth Federal Reserve District he is
held in very high regard because of
his capabilities and straightforward
ness in his business relations— End.
Northwestern Banker. March, 1955

94-

< ----------------------------------------------------T W IN walk-up windows conform grace
fully to the existing architecture of Mer
chants National Bank in Cedar Rapids,
Iowa. Guards meet auto customers at curb,
complete transaction at windows and re
turn all papers and receipts to customers
in just a few seconds. Pedestrian custom
ers also make frequent use of this Diebold
installation.

W alk-U p W indow s Help E veryon e
Receive Wide Acceptance from Bankers Throughout Nation

HE substantial growth in busi
ness experienced by banks in the
postwar era has led to a tremen
dous volume of bank remodeling and
new construction in order to give fast,
efficient service to customers.

The solution of this problem as far
as teller window service is concerned
has been met principally by three
methods:
1. Enlargement of lobby teller serv
ice.
2. Installment of walk-up windows.
3. Installation of drive-up windows.

The N o r t h w e st e r n B a n k e r in pre
vious issues has shown how bank mod
ernization has improved interior facili
ties and made way for modern im
provements such as walk-up and driveup windows.
The latter two types of installations
have met with wide acceptance nation
wide, but probably nowhere has this
acceptance been more enthusiastic
than in the midwest. Typical of this
is an up-to-date report which shows
that in Nebraska and Iowa banks, 20
walk-up facilities with a total of 31
teller windows have been installed in
the past two years, and 17 drive-up
facilities with a total of 25 teller win
Digitized forNorthwestern
FRASER
Banker, March, 1955
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

dows have been installed in the past
three years.

2. Eases the Parking Problem; Frees
Parking Space for Other Motorists.

Further installations are in progress
and more are being considered as
quickly as physical obstacles can be
removed.

Five motorists can be served at the
walk-up window in the time it takes
one motorist to park, walk to the bank,
stand in line and deposit, and walk
back to his car, parked several blocks
away.
3. Thins Traffic in Congested Down

One of the manufacturers of this
equipment, Diebold, Inc., of Canton,
Ohio, made the following compilation
from letters received from bankers to
show how walk-up banking service
benefits the community, neighboring
businessmen and motorists and deposi
tors:
THE COMMUNITY:

town Area.

Motoring depositors will spend an
average of 13 minutes less in the con
gested downtown area, which means
a considerable decrease of autos in the
busy downtown section.
NEIGHBORING BUSINESSMEN:
1. More Parking for Customers.

1.
Eases the Traffic Problem; Elimi
Every depositor served at the walknates Space-hunting hy Motorist De
up window saves an average of 13
positors.
minutes of parking time, which be

Block-circling depositors can cause
considerable congestion on streets in
the neighborhood of the bank. As
much as 30 minutes may be spent on
city streets by the depositor hunting
for a parking space. Walk-up win
dows eliminate this time on city
streets and, when multiplied by the
hundreds of motorist depositors served
at a walk-up window each day, takes
considerable traffic off of downtown
streets.

comes available to customers of ad
joining businesses.
2. Less Street Congestion.
Customers of neighboring businesses
need no longer compete with bank de
positors for parking spaces in the vi
cinity. Less block-circling and less
competition for available p a r k i n g
spaces in the vicinity.
WALK-UP WINDOWS . . .

(Turn to page 61, please)

P a gea ntry m arks the opening o f S a lin a s’ fam ed 44-year old rod eo

Get to

k n o w ... the bank that knows California

N o red tape —no costly delays —when yon
use Bank of America’s statewide system of
550 branches for direct routing of collection
and remittance items. Cash letters may be
sent directly to any one of the 330 Cali
fornia communities in which this bank is

also means rejected items, returned directly
b y the bran ch , reach y ou days ahead of

located and your account credited the same
day they are received. This reduces float. It

300 M on tg om ery S treet, San F ra n cisco
or 650 South Spring Street, Los Angeles.

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Federal Reserve Bank of St. Louis

item s tra v e lin g th ro u g h usual ch an n els.
T o inquire a b ou t this unique co rre sp o n
dent service, write C orporation and Bank
R elations D epartm ent, Bank of Am erica,

IBmtk of America
NATIONAL
MEMBER

FEDERAL

v iV

DEPOSIT

ASSOCIATION

INSURANCE

CORPORATION

Northwest ern Banker, March, Ì95S

26
On Friday morning, March 25, all
delegates and their wives and guests
will make a mass visit to the capitol
building to call personally on their re
spective representatives and senators
in Congress. On this occasion, the
bankers will put in their personal
pleas for the members’ support of leg
islation being backed by the associa
tion.
Important committee reports will
form the program for the closing busi
ness session of the convention on Sat
urday afternoon, March 26. Reed H.
Albig, president of the National Bank
of McKeesport, McKeesport, Pennsyl
vania, will give the report of the com
mittee on small-bank ownership and
management succession, and W. C.
Howell, vice president of the Chatham
Bank of Chicago, that of the commit
tee on savings and loan competition.
The reports of the resolutions and
nominating committees and election of
officers will round out the session.—
End.

in d ep en d en t H a n k e r s J ieet in
W ushinfflon. Mi. C .,
D V A N C E registrations are re
A
ported rolling in at a record rate
for the 21st annual national conven
tion of the Independent Bankers Asso
ciation of America in Washington,
D. C., March 24 to 26, by President
William J. Bryan, vice president of the
Third National Bank in Nashville.
“ The promise of imminent success
in our long fight for proper legislation
to curb the expansion of the holding
companies, plus the opportunity for
personal visits to their representatives
in Congress by America’s independent
bankers, has shot the early reserva
tions to the highest peak in history
at this stage,” says President Bryan.
“ All indications point to a record at
tendance at this highly important con
vention, the first our association has
ever held in the nation’s capital.”
Simultaneously with Mr. Bryan’s
announcement of the incoming flood
of advance reservations came word
from the program committee of the
attractive agenda being formulated for
the three-day conclave.
Principal speaker at the annual ban
quet on the convention’s closing eve
ning, Saturday, March 26, will be Con
gressman Sam Rayburn of Texas,
Speaker of the House of Representa
tives.
Convention Speakers

Among other convention speakers
scheduled to date are President Bryan,
who also will preside over all sessions;
Clinton Axford of New York, editor of
The American Banker; Guy Sturgeon,
president of the Bank of Commerce,
Sheridan, Wyoming, former A.I.B.

O v e r 7 0 Year s of

Bank

W I L L I A M J. B R Y A N
T o head W ashington convention
held by Independent Bankers

New Irving Director

president, who will represent the
Bank Shareowners Advisory League;
Harry J. Harding of Pleasanton, Cali
fornia, president of the Independent
Bankers Association of the 12th Fed
eral Reserve District, in a report on
the progress of holding company leg
islation, and Mrs. Ivy Baker Priest,
Treasurer of the United States, who
will address the ladies at their annual
luncheon.
A highlight will be a panel discus
sion by officials of the Financial Pub
lic Relations Association on the public
relations and advertising aspects of
small-bank management.

K n o w- H o w

Raymond H. Reiss, president and a
director of Reiss Manufacturing Corpo
ration, has been elected a member of
the board of directors of Irving Trust
Company, New York, to succeed his
father, Jacob L. Reiss, a director of
Irving and its predecessor banks for
40 years until his death on January
11, 1955.
Mr. Reiss, a trustee of Emigrant In
dustrial Savings Bank, is also presi
dent and a director of Rway Furniture
Company of Sheboygan, Wisconsin and
a director of C. Reiss Coal Company
and Reiss Steamship Company both of
Sheboygan, as well as a director of
Drummond Dolomite, Inc., of Detour,
Michigan.

Back of E v e r y J a e g e r J ob

R e m o d e lin g S

N orthw
estern Banker, March, 1955
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Pictured
Here—
In terior of
The N ew ly
Remodeled
Pella National
Bank at Pella,
Iow a.

1="*"™

JAEGER Manufacturing Com pany is staffed with ex
perienced

engineers

and

designers

who

will be

happy to consult with you or your architect about
your Bank Remodeling or Bank Fixture needs.
There's a JAEGER Bank Installation Job Near You!
Ask any of our hundreds of satisfied customers.

MANUFACTURING COMPANY
In terior and Bank Fixture Remodeling Si nc e

8th &Vine

1883

Des Moines 9, Iowa

27
TH E PROVIDENT TRUST
CO., Pittsburgh, Pa. has

a complete National
System, finds that it has
speeded up and in
creased the efficiency of
their whole operation—
whi l e s a v i n g t h e m
$25,000 a year.

M R . A. W. C H A R L T O N ,

Executive Vice Presi
dent, tells in his letter
below how N ationals
have mechanized the
Provident Trust.

TH IS BATTERY of National Tellers machines speeds service to customers, while giving the Provident Trust Co.
tight control and up-to-the-minute information on accounts serviced.

“Our 15 Q/P^ticnal Machines

save us *25,000 annually...
return 40% every year on equipment investment!”
— Provident Trust Com pany, Pittsburgh, Pa.

“ We began a long range replacement
and modernization program in April
1950,” says Mr. Charlton. “ Since
that time we have installed ten Na
tionals for bookkeeping, proof, ac
counting and window posting. In
addition, we installed five tellers ma
chines for customer service.
“ During the approximate four
years of the application and operation,
we have been able to reduce our em
ployee force from a total of thirtyseven to the present total of thirtyone. Our employee overtime has been
reduced by at least 75%. Tellers are

balanced out, locked up and on the
way home by 3:30 (one-half hour
after closing). The daily Statement of
Condition is in the hands of officers
at 3:45 (forty-five minutes after
closing), as a general rule. Peak loads
are almost unknown. We estimate
that our Nationals are saving us
$25,000 annually, thus returning 40%
every year on our equipment invest
ment.”
In your bank, too, National Ma
chines can cut costs, speed up and
increase the efficiency of your opera
tion. And at a saving that allows the

THE NATIONAL CASH REGISTER COM PANY, D a y to n 9, Ohio

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

949 O F F I C E S

equipment to pay for itself in a
surprisingly short time. Your nearby
National representative, a trained
systems analyst, will be happy to
make a survey of your operation and
show you how much Nationals can
save you. There is no obligation, of
course. He is listed in your classified
directory. Call him today.

G /fcaftcnal
. cash utmn

I N 94 C O U N T R I E S
Northwestern Banker, March, 1955

P la n N a tio n a l C re d it
1,400 leading installment
A BOUT
credit executives from banks in

all parts of the United States are ex
pected to attend the National Install
ment Credit Conference of the Ameri
can Bankers Association, March 21-23,
at the Hotel Jefferson, St. Louis.
Emphasis this year will be placed
on exchange of ideas through panel
discussions and audience participa
tion.
The addresses by leading industrial
ists, bankers and credit experts will
again be included in the program, but
all formal speeches are scheduled this
year for the morning sessions. Among
the speakers at these sessions will be
Delos C. Johns, president, Federal
Reserve Bank of St. Louis; Charles
K. Rieger, vice president, General
Electric Company; Robert L. Oare,
chairman of the board, Associates In
vestment Company, and president,
American Finance Conference; Walker
Williams, vice president, Ford Motor
Company, and a group of topflight
bankers in the credit field.

proval was given to the amendment
of the charter of the company increas
ing the authorized number of shares
from 3,000,000 shares of common stock
without par value to 9,000,000 shares
of common stock of a par value of
$5 each, and changing each old share
of no par common stock into three
shares of the new $5 par common

of Kansas City. Mr. McClintock suc
ceeds Frank A. Sewell, president and
chairman of the board of Liberty Na
tional Bank and Trust Company, Okla
homa City.

As a result of the split and change
to $5 par value, there will be outstand
ing 6,578,769 shares of the new no par
common stock, and the stated capital
of the company which prior to the
amendment was $54,470,403 will be re
duced to $32,893,845 and the balance
of the previous stated capital in the
amount of $21,576,558 will become cap
ital surplus.

Appoint Tulsa Banker

National Cash Increase

R. Otis McClintock, president of the
First National Bank and Trust Com
pany of Tulsa, recently was named a
director of the Oklahoma City branch
of the Federal Reserve Bank of Kan
sas City. His term, which began Jan
uary 1, will run for two years.

At a special meeting of stockholders
of The National Cash Register Com
pany held in Baltimore recently, ap

The appointment was announced by
Raymond W. Hall, chairman of the
board of the 10th district reserve bank

r . o t i s M cC l i n t o c k
N amed a director of the Federal
R eserve Bank, Kansas City

Last September Mr. McClintock ob
served his 26th year as president of
First National. He has been a mem
ber of the bank’s board of directors for
36 consecutive years.

I iiA&cUjiu'

O u r w ide experience in the handling o f
requirem ents for corresp on d en t bank s has

QjjLr^VvdlMJZJL

g iv en us the k n ow led ge and rep u ta tion for
p ro m p t, com p lete and efficient service.

Qj&aaa JLA-

hwest ern Banker, March, 1955
Digitized forNort
FRASER
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

C ity

N a t i o n a l

B ank

A N I» T R U S T C O M P A N Y
2 0 8

S O U T H

L A

S A L L E

S T R E E T

( M e m b e r F ed era l D e p o s it I n s u r a n c e C o rp ora tion )

NEW

j ñ k '%N'%

FAST SERVICE

-*N<•%4 ;W M O
N E E R E D IN N E W YORK
,
o .%

^ cu
v e

\ V *

by G uaranty
T rust Company

V s*
Customers dealing with us across the
country can now receive faster-than-ever
service in check clearings
and collections.
Through the use o f simple air-mail
stickers illustrated above and with the
co-operation o f the New York Clearing
House and the Postal Transportation
Service, our customers now have
available to them— airport-to-bank
delivery— the most rapid air-mail
delivery service yet devised.
By slicing valuable hours from
airfield-to-bank handling time, the
new system frequently cuts a day or
more from costly "float time."

LA GUARDIA

During the several months that we
have been operating this service
it has proved o f benefit to many o f
our customers. We invite your inquiries
as to its possible value to you.

Guaranty
Trust Company
of New Tork
Capital Funds $395,000,000
140 Broadway, New Y ork 15
Fifth Ave. at 44th St., N ew Y o r k 36
M adison Ave. at 60th St., N ew Y o r k 21
40 R ockefeller Plaza, N ew Y ork 20
L O N D O N : 32 Lom bard St., E.C. 3 • Bush H ouse, A ldw ych, W .C . 2
PA RIS: 4 Place de la C on cord e
BRUSSELS: 27 Avenue des Arts
Member Federal Deposit Insurance Corporation

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Federal Reserve Bank of St. Louis

Northwestern Banker, March, 1955

W h a t's
. . . for Banks and Bankers
For more information about the items in this column and where
they can be purchased, write Walter T. Proctor, Associate Editor,
N O R TH W ESTE R N B A N K E R , 306 15th Street, Des Moines, Iowa.

O LONGER is it necessary for

N banks to send their microfilms to
the nearest Recordak Processing Lab
oratory when a few facsimile prints
are needed.
Recordak Corporation, Subsidiary of
Eastman Kodak Company, has intro
duced a new kit for economically pro
ducing enlarged photographic paper
facsimiles from microfilm i m a g e s .
With the Recordak Rapid Facsimile

prepare your
deposits speedily
and accurately at

bank’s possession at all times, for
quick reference if necessary.
* * *
As streamlined and uncluttered as
the most modern bank interior, this
one-piece literature stand will add a
decorative note to counters, tables and
desks, holding an ample supply of
folders in full view of customers, with
cover designs visible through the
transparent Plexiglas material.
The stand is molded in one piece
with a rubber suction cup at the back
to hold it firmly on any smooth sur
face, safe against accidental jarring,
and without harm to any polished
surface.

Kit, a facsimile can be made in a lit
tle over a minute, right in the bank.
The operation is so simple that any
clerk can turn out clear, sharp facsim
iles after a few minutes’ instruction.
The Recordak films remain in the

IH O M E I
ST O R E

OFFICE

This one-piece literature stand is of
fered, for free examination with a fiveday return privilege, by the advertis
ing specialty department of Karl G.
Belli- Advertising Agency, Inc.,

Type a name and address once on

Ilit CL

WESSCO
HAND
PRINTER

TWIN CHECK GUIDES
REG.

PAT.

OFF.

The sensationally new bank aid for
filing canceled checks that is pleasing
the girls who do the work.
Soys a W isconsin Banker:
"Frankly, 'Twins' are such a w on
derful improvement over the mess we
have been working with that w e just
can't wait until w e get enough for a
complete installation."

>ahon
phone

-eet

Ornaba 8,
Ph°ne

Nebraska

JAckson i I ' *

Northwestern
Banker, March, 1955

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

WRITE TODAy FOR MORE DETAILS

James L. Smith Co.
1118 M u lb erry S t. — D ept. N

Des Moines, Iow a

a paper slip. Then use the typed slip
to print the address on envelopes, cir
culars, statements, and time cards as
many as 50 times over a period of
years. That’s what you can do with
the new addressing machine just re
leased by a Minneapolis firm.
W ill a t t r a c t new
accounts and retain
present accounts.

SAVINGS

BANK
Size 4 V 4 , , x 4 V « '

j j

M ade of b rillian t S ty re n e P la s
t ic , in co n tra stin g c o lo rs. Fine
d e ta ils of a re a l home. M o vab le g a ra g e d o o r,
open w in d o w s, flag ston e p ath , stone w a ll,
green law n , shingle roof, cla p b o a rd siding and
o th e r fe a tu re s.
P erm anent co lo rs — not ju st
p ain t. H o lds a p p ro x im a te ly $50 •— p ric e d as
low as 28 c e a ch .
L A R G E S P A C E FO R IM P R IN T — IN G O LD
Send fo r list of re pr e se n ta tiv es

THE
173-175

LEE
Lee

PLASTIC
A ve.,

MFG. CO.

Bridgeport,

Conn.

cation
Again, banking experience shows that
the simultaneous prescheduling of
ledger and coupons, plus more mailedin payments and easier window trans
actions, enable tellers to handle a 2 5 %
to 5 0 % volume increase.

The customer’s complete coupon book
is created autom atically as a by-product
o f prescheduling the loan ledger. C ou
pons and ledger bear identical infor
mation regarding each installment.

Save customer
Each installment coupon shows com
plete, legible information — account
number, due date, amount of payment
and balance before and after paym ent
— reduces customer inquiries.

Each posting o f a payment is auto
matically proved on the payment jour
nal. Am ount of any error is printed,
localized for quick correction.

M ailed-in payments have increased as
much as 5 0 % in some banking in
stances, because the customer has com
plete information, a durable coupon
for mailing, a convenient record stub.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Does the Burroughs Coupon-Ledger Plan
solve your particular installment loan
problems? Talk it over with your Bur
roughs man, or write Burroughs Corpora
tion, Detroit 32, Michigan.

1ESS1VE

m a c h in e s

W H E R E V E R T H E R E ’S BUSINESS T H E R E ’S

Burroughs
Burroughs

Northwestern Banker, March, 1955

Sm all ita si a ess
(Continued from page 19)
of government business loans being
made on a more attractive basis. In
other words, to repeat, we are posi
tively not in competition with private
banks.
In furtherance of the national ad
ministration’s efforts to encourage pri
vate lending the Congress amended
the Federal Reserve Act last summer
to permit banks in the national bank
ing system to omit the Small Business
Administration’s share of participa
tion credits from their total loans in
the computation of their legal limita-

tions. Such action, of course, coin
cides with similar legislation covering
other types of federal governmental
loans. Many of the state legislatures
have likewise permitted such an exclu
sion for their state banks.
It is true, of course, that most of
the loans made by the Small Business
Administration are for longer periods
than those ordinarily preferred by
commercial banks. By their nature
such loans are more costly to investi
gate and analyze. However, we feel
that there is a definite opportunity to

THE CITY
WITH A FUTURE!

be of service to the community and
the nation in this field. Happily
enough, on many occasions banks
have taken all of a loan in which they
originally planned only to participate.
Notwithstanding the fact that the
Small Business Administration is au
thorized to make loans for as long as
ten years, the average term of our
loans has been less than six years and
a large percentage are for four and
five year periods. Since private banks
are usually able to provide short-term
credits in adequate amounts, our ac
tivity in connection with loans for less
than two years is generally limited to
those cases in which government con
tract financing is involved.
At the time our financial assistance
program was being formulated, we
consulted with many bankers through
out the country and developed our pol
icies and plans in accordance with
their suggestions and recommenda
tions to the greatest possible extent.
Today, we are still constantly obtain
ing the benefit of their views.
Credit Judgment

Many bankers are members of our
local advisory boards. The credit
judgment of local banks has been uni
formly good. Obviously, our country
could not otherwise have grown and
prospered as it has. Banks through
out the country have also been helpful
to us in appraising credit information.
Although about 40 per cent of our
loans have been made to manufactur
ers, almost all types of businesses are
eligible for consideration. As stated
above, a few enterprises are not eligi
ble for loans from the Small Business
Administration because of statutory or
policy limitations.

/tí

Reviews Loans

FOR SUPERIOR
CORRESPONDENT SERVICE
Banks in 38 states and 50 foreign countries
find it profitable to let City National of Kansas
City serve them.

CITY NATIONAL
Bank & Trust Company

M EM B E R F E D E R A L D E P O S I T
IN S U R A N C E C O R P O R A T IO N

10th and G r a n d

Northwestern Banker, March, 1955

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

K a n s a s C i t y 41, Mo.

Needless to say, the Small Business
Administration will maintain a con
tinuous review of its loans, in order
to assure their use for the purpose for
which they were intended, as well as
the repayment thereof, in accordance
with the requirements of the law.
Thus far, we have had no delinquency
problems. As of November 1, 1954,
only two business loan installment
payments were late.
At the present time, the Small Busi
ness Administration is servicing more
than 5,000 loans, aggregating approxi
mately $74,000,000. Of that total, over
1,000, for $55,170,000, are business
loans; 813, for $4,133,000, are disaster
loans made by the Small Business Ad
ministration, and 3,300, amounting to
$15,000,000, are disaster loans made by
the Reconstruction Finance Corpora
tion, which are now being adminis
tered by the Small Business Adminis
tration.

COOPERATIVE
ESTATE PLANNING
TECHNIQUES!

You will learn many valuable new practical
techniques on how to help your clients have bet
ter estates, better planned, at the NATIONAL
ESTATE PLANNING INSTITUTE to be held in
Des Moines, Iowa, on April 18 and 19.
Lawyers, life underwriters, trust officers and ac
count ants from all over the United States will he
there to discuss realistic problems in estate plan
ning. The institute is designed to give you im
proved and practical techniques for intelligent
handling of the type of estates your clients have.
It will be an audience participation institute. T ou
will be able to discuss and compare your ideas!

N A T IO N A L LY A C C L A IM E D
A U TH O R ITIES T A K IN G PART IN
TH E INSTITUTE IN CLU D E:
JOSEPH TRACHTM AN . . .
a leading New York lawyer and author ol
“ ESTATE PLANNING” published by the
Practicing Law Institute and the American
Bar Association.

ROBERT J. LAWTHERS . . .
of Boston, Director of Benefits and Pension
Business of the New England Mutual Life In
surance Company. He is a noted speaker and
lecturer on estate planning and has also had
many articles published on the subject of taxes.

LAFLIN C. '’BOB” JONES . . .
of Milwaukee, Executive Assistant of the North
western Mutual Life Insurance Company. He
is the author of the chapter entitled “ Estate
Planning from the Life Insurance Point of
View” published in “ The Journal of the Ameri
can Society of Chartered Life Underwriters” .

KENNETH I. TODD . . .
trust officer of the Valley National Bank of
Phoenix, Arizona . . . president of the Arizona
Estate Planning Council. He has been recog
nized for many years as a leader in developing
cooperative techniques in estate planning.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Attend the N A T IO N A L ESTATE P LA N
N IN G INSTITUTE. You will be equipped
to do a better job for your clients after
participating.

fyou
IxpicfyouR doctor
•\ ) TO KEEP UP TO DATE!
\ yOUR CLIENTS EXPECT
YOU TO KEEP UP TO DATE!
The two day National Institute starts promptly at 10:00 a.m.
at the Hotel Fort Des Moines on April 18. Room reser
vations will be made for registrants. Send your $25 regis
tration fee to the NATIONAL ESTATE PLANNING
INSTITUTE today.
B E C A U S E OF THE P A R TIC IP A TIO N TY PE PRO GRA M . . .
THERE W IL L BE ROOM FOR A LIMITED NUMBER ON LY .
SEND IN TH E C O U P O N BELOW NOW!
N ation al E sta te Planning Council
212 Eq u itab le Building
Des Moines 9, Iow a
Enclosed p le ase find my S25 re g istra tio n fee for the N A T IO N A L
E S T A T E P LA N N IN G IN S T IT U T E . . .
to be held a t H o te l Fort Des
M oines, in Des M oines, Io w a , on A p ril 18 and 19, 1955.
P lea se
arran g e fo r hotel
beginning

reserv atio n s fo r

..............

people fo r

........... ..

days

__________
(d a t e )

Name
Profession
A d d re ss

Northwest ern Banker, March, 1955

34
Altogether, as of November 30, 1954,
the Small Business Administration
had received, for consideration and
processing, 3,825 business loan applica
tions totaling $223,256,000, and 1,128
disaster loan requests aggregating
$8,713,000. To summarize, in the past
year a grand total of nearly 5,000 appli
cations have been filed, amounting to
about $232,000,000.
Advisory Capacity

In addition to its participation and
direct lending activities, the Small
Business Administration renders fi
nancial counseling services to small
enterprises, which we feel have pro
duced some noteworthy results. Our
recommendations and suggestions in
this respect invariably favor bank fi
nancing.
Furthermore, it should be pointed
out that the financial assistance pro
gram of the Small Business Adminis
tration constitutes less than one-half
of its efforts to aid small business. It
is also our duty to endeavor to obtain
a fair share of government contracts
for small concerns, and in this activ
ity we deal with more firms than in
our lending program.
Additionally, we furnish manage
ment and technical aids which encour
age the training of owners and junior
executives in phases of business opera

ANOTHER

Not Yet Perfected

Admittedly, no lending program can
be perfected in a single year, and we
certainly realize that ours could stand
improvement. Accordingly, we are
continuously striving for the further
refinement of our operating proce
dures. For instance, we are endeavor
ing to reduce the present average of
30 days for processing a loan applica
tion. This length of time is partly the
result of a manpower problem.
Although we have adopted much
streamlining, we are still constantly
searching for more simplified methods,
recognizing always, however, that we

HANDY

W e now have convinced ourselves
that a new feeding device designed
to permit us to imprint five punchedcard checks at a time, which has
been in the process o f development
for the past year, is going to work
out very well. Test runs have been
satisfactory and at least one unit for
each o f our plants should be ready
within the next two months.

This device, which is attached to a
conventional Miehle vertical press,
carries five individual stacks of cards
and, after printing, delivers them
into five separate receptacles. Its
primary purpose is to handle small
orders of Personalized Card Checks
together with a supply of personalized
deposit cards, which some banks
supply to special checking account
customers. We propose to imprint

Banker, March, 1955
Digitized Northwestern
for FRASER
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Federal Reserve Bank of St. Louis

tions in which they may be efficient.
In this connection we are collaborat
ing with the American Bankers Assoc i a t i o n, universities and business
groups in co-sponsoring schools for
the instruction of the owners of small
businesses.
In addition to all of the foregoing,
the Small Business Administration
has been designated as the Agency to
make disaster loans to owners of
homes and small businesses which
have been damaged or destroyed by
hurricanes, tornadoes, floods, or other
natural catastrophes. In this activity
we have found local banks most co
operative and of invaluable assistance
to us.

GADGET

the customers’ names and account
numbers on the checks and deposit
cards, then punch in the account
numbers and mail the orders direct
to the customers. We anticipate that
we will be able to handle such orders
with dispatch and sell them at a
fairly reasonable price.
As a by-product, we believe this new
unit may be o f value in processing
special all-print card check orders in
five or ten thousand quantities. It will
not handle long runs, but for "fill-in”
orders or emergency needs it should
serve a useful purpose. While as yet
we have no real experience in card
check work, we expect to pick up a
little "know how” as we go along
and will welcome the opportunity to
work with any banks who are seeking
this type o f small order service.

must retain the safety factors which
insure integrity.
It is the announced policy of the
Small Business Administration to sell
direct loans on our books at any time
to any bank which may be interested
in the purchase thereof, and we feel
sure that a great many of our direct
loans will be transferred to the pri
vate banking system. Furthermore,
we hope and expect that most of our
participation loans will ultimately be
taken over by local banks.
In other words, our lending pro
gram is rooted in the confident belief
that the private banks of the country
are doing a good job in providing for
the credit requirements of business,
and we realize that the proper role of
the government in this field is to as
sist in those areas where such aid may
be needed to promote and maintain a
strong and expanding national econ
omy. It cannot be emphasized too
strongly that our lending programs
are geared to active and most sincere
cooperation with local banks in their
own communities.
It is our firm belief that this is the
only way in which we can assist in
the maintenance of a prosperous econ
omy, which will provide a healthy en
vironment for small and large firms
alike and opportunities for increased
business and employment.—End.

A CHICAGO TRIP . . .
(Continued from page 17)
observatory of the Board of Trade
building, a tour of Chicago’s Maxwell
Street, Skid Row, Chinatown and Lakeshore Drive, Brookfield Zoo, and the
International Livestock Exposition.
The Cost Is Distributed

Different clubs in the county have
won the trip, and from these winners
enthusiasm is spread among the other
clubs of the county who will work
harder the next year and the next,
hoping to be that lucky one. The cost
is approximately $700 to $750 a year,
and is paid by all the banks in the
county. The charge for each bank is
based on a percentage of the bank’s
deposits, so the cost can be equalized
among the banks according to each
bank’s size.
The Dallas county banks have been
doing this for several years, and in
sponsoring this award, the bankers are
encouraging the youth of the county
in the proper and up-to-date methods
to be used in the breeding and raising
of livestock, and are helping develop
top-notch farmers who, in a few years,
will contribute to the growing wealth
and higher standards of the agricul
tural county.—End.

How to gain hours on airmail cash and collection items...
Ask us for a supply o f these A .M .F .

frequent pick-ups at Chicago’ s M id

(air mail field) labels or envelopes,

way Airport, and these letters are

which we will be glad to send to

brought from the airport direct to

you.

the bank for immediate processing.

Your cash and collection letters

Our correspon den t banks and

then will be included in air mail

corporation customers are enthusi

field pouches being dispatched to

astic about this faster way o f getting

Chicago. Night and day we make

available funds. Try it.

' ì

Continental Illinois National Bank

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

and Trust Company of Chicago
La Salle, Jackson, Clark and Quincy Streets
LOCK BOX H, CHICAGO 90, ILLINOIS
M em ber Federal Deposit Insurance Corporation

Northwest ern Banker, March, 1955

O versells O p p ortu n ities. . .
(Continued from page 21)
which the bank has made in the 36
countries throughout the world. The
practice, however, is just beginning,
and taking into account commercial
bank interest in prospective loans we
now have under consideration, I ex
pect to see a further sizable increase
in private participation in the bank’s
loans over the next year.
The World Bank welcomes the par
ticipation of commercial banks and
other sources of private capital in its
loan operations. Our management

feels that it enables us to more effec
tively carry out the directive in our
charter, which requires us to partici
pate with private capital, whenever
possible, in the financing of economic
development.
Private Participation

Private participations also have the
effect of reducing the demands placed
on our own funds, which we obtain
from the bank’s paid-in capital or the
sale of its bonds in the investment
market.

Commercial banks in particular find
it advantageous to participate on a di
rect basis in our loans as the follow
ing summary indicates:
1. A new avenue to international in
vestment is opened up to them;
2. Each loan, as a whole, is carefully
investigated by the World Bank as to
its economic, financial and technical
merits and is subjected to the super
visory activities of the bank;
3. Amortization features covering
the loans enables commercial banks
to obtain short and intermediate ma
turities suitable to their portfolios;
4. The World Bank holds the longer
maturities which insures that in event
of difficulties it will act to protect both
the participant’s and its own interests,
even though it does not guarantee the
former’s share of the loan.
Additional Advantages

com plete

banking services of American National

can help you in serving corporate or individual cus

In some cases commercial banks
have found additional advantages in
participating in a loan with us. In the
process they have been able to estab
lish contacts with officials of govern
ment and private enterprise abroad,
and frequently these contacts have led
to the development of other types' of
commercial bank business such as de
positary agent and the financing of
trade and commercial transactions.
In conclusion, it should be pointed
out that participations in World Bank
lending open up a vast field for invest
ment and business in the geographical
sense alone. Some indication of this
can be gleaned from the accompanying
table showing direct participations in
World Bank loans from 1947 to the
end of December, 1954.
These figures do not cover pur
chases by commercial banks and oth
ers of about $92 million of the obliga
tions of our borrowers which we had
received in connection with loans that
had already been disbursed, nor does
it include commercial bank holdings
of the bonds of the World Bank.—End.

tomers in your town.

G.I. Loans Increase
We understand the problems of the banker in his own
territory. We back up that understanding with a "behind
the scenes" familiarity with Chicago and the midwestern
scene and with facilities that are both complete and nation
wide. How can we help you?

American National Bank
and Trust Company of Cliicacpo
LA

SALLE

Northwest
ern Banker, M a r c h , 1955
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

WASHINGTON,

C H IC A G O

90,

ILLINOIS

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

GI home loan applications topped
the 50,000 mark in January, 1955, for
the sixth straight month, the Veterans
Administration has announced.
VA last month received 51,917 home
loan applications from private lenders
on behalf of World War II and postKorea veterans, a drop of only 254 ap
plications below the 52,171 received
the previous month.
The January total was nearly two
and a half times the 21,410 received
in January, 1954.
During the past six months, VA re
ceived 335,736 applications for home
loans, more than double the 164,737
received during the six month period
ending January, 1954.

C hristm as Club a Corporation
is pleased to announce

The !V inners
in the

Herbert F. Raw// M em orial A w ards Competition
a program o f Christmas Club a Corporation to promote
a better public understanding o f the services you
render to y ou r community.
A w a r d s t o t a lin g $ 1 0 , 5 0 0 . 0 0
C h r i s t m a s C l u b m e m b e r s w h o in t h e
j u d g e s w r o t e th e b e s t le tt e r s
“ H o w I use m y C h ris tm a s

w e r e m a d e to
o p i n i o n of i n d e p e n d e n t
o n the s u b je c t
C lu b F u n d s ”

1st award $2500.00 was made to Frank C. Presveyc
Christmas Club member at The Howard Savings Institution, Newark, New Jersey

2nd award $1500.00 was made to Mrs. Evelyn Hayes
Christmas Club member at Bankers Trust Company, New York City, N Y.

3rd award $1000.00 was made to
Vy. Rev. Msgr. Franklin M. Kelliher
Christmas Club member at The Marine Trust Company of Western New York, Buffalo, N. Y.

167 other cash awards, ranging from $100.00

by Christmas Club members forms the backbone

to $20.00 were made to people in practically

of our economy. These people are saving and

every walk of life.

building for individual financial security; they

Christmas Club a Corporation is proud to
have made these awards and thanks the thou
sands of financial institutions whose interest
helped to make our 1954-1955 award compe
tition so popular.

are building character for themselves, their
families and their community and they are
building business for financial institutions.
W hy not have a staff representative o f
Christmas Club a Corporation call on you? He

The many thousands of letters submitted

has every system for efficient operation and
wide variety of proven advertising material

from coast to coast and border to border of the

with which to build a profitable program to

United States as well as from Puerto Rico and

meet your individual needs. There is no obliga

Hawaii clearly indicate that thrift as practiced

tion, of course.

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Federal Reserve Bank of St. Louis

V A C A T IO N

C LU B S •

S C H O O L S A V IN G S

•

A L L P U R P O S E C LU B S • T A X C LU B S

Jt (Korporation
FOUNDED BY HERBERT F. RAWLL

2.‘IO P A R K A V E N U E , N E W Y O R K
STAFF MEMBERS THROUGHOUT AMERICA
B U ILD S C H A R A C T E R

•

B U ILD S S A V IN G S

•

B U ILD S B U S IN E S S F O R F IN A N C IA L IN ST 1T U T IO N S

Northwestern Banker, March, 1955

When You Have a Custodian Account at Bankers Trust
As a bank for bankers, next-door to

your ow n staff: protecting their phy

several o f the nation’s principal secu

sical safety, collecting income, super

rities trading markets, Bankers Trust

v is in g pu rch ase, sale, receip t and

is in an ideal position to offer unusu

delivery. A ll your securities in our care

ally detailed and complete Custodian

are always under your control.

Service.

Hundreds o f out-of-tow n banks, cor

Y ou r securities and those o f your cus

porations, institutions, insurance com

tomers are given the same experienced

panies and similar organizations use

guardianship as our ow n assets. It’s

our Custodian Service. Let us show you

like having an operating unit in N ew

how it can w ork for you. Just call, or

Y ork, handling your securities with the

write to Bankers Trust at 16 W all

systematic vigilance you expect from

Street, N ew Y ork 15, N. Y .

Ba n k e r s T r u s t

co m pan y

NEW YORK
M em ber Federal Deposit Insurance Corporation

Northwestern Banker, March, 1955

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

ANNUAL INVESTMENT REVIEW— Pages :«> to 50

W h a t. t haut M u tu a i Fuads*/
A Timely Question With a
Capable and Interesting Answer

W ritten E specially fo r
N orth w estern B an ker

By HOMER B. PARK
Hornblower & Weeks
Chicago, Illinois
VEN today $6 billion is quite a
large amount of money. Ac
cordingly, the fact that the as
set value of mutual fund shares now
approximates this figure and that
these shares are owned by more than
one and one-half million investors,
both small and large, is attracting a
good deal of attention.
What is a mutual fund and why
have so many conservative investors
bought so many shares? What do
they pay and what do they get?

Regulated by S.E.C.

A mutual fund is a company whose
sole business is the management of
money for its shareholders. Mutual
funds are strictly regulated by the
S.E.C. under the terms of the Invest
ment Company Act of 1940, which not
only requires full publicity on all of
a company’s transactions, but also lim
its the fees which may be paid to the
professional managers who are en
gaged to make the investment deci
sions. Furthermore, the selling prac
tices and sales literature of the deal
ers and distributors who market mu
tual fund shares are rigidly supervised
under a “ Statement of Policy” set
forth by the S.E.C. and adopted by
the National Association of Securities
Dealers.
Five Broad Classes

For convenience the 100 or so lead
ing companies may be divided into
five broad classes according to their
policies, their stated objectives and
their performance over the last ten
or more years.
1. Bond Funds: Such funds own
nothing but bonds. They have been
aptly described as a “perpetual noncallable bond” relieving their owner
of maturity and reinvestment prob
lems.
2. Balanced Funds: These constant
ly hold a minimum portion (usually

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

25 to 40 per cent) of their assets in
bonds and preferred stocks which are
generally referred to as “defensive”
type securities. The remainder of the
assets will usually be invested in com
mon stocks. Balanced funds inherit
their policies from the practices gen
erally followed by New England bank
and other trustees often operating un
der the watchful eye of the courts.
As one would expect from their hold
ings, the prices of their shares tend
to fluctuate a little less than the gen
eral stock market, both up and down.
3. Stock Funds: As the name indi
cates, such funds generally maintain
a fully invested position in common
stocks believed to be suited to the par
ticular objective of the fund at the
time. Some funds deal frankly in
speculative type stocks while others
plan to own only stocks of high or
improving investment quality.
4. Sj)ecialty Funds: Such funds ap
peal to the buyer who wishes to place
some of his investment money in a
certain industry such as televisionelectronics, chemistry, aviation, etc.,
or a certain area of the world such as
Canada, for example. While not of
fered as a complete answer to one’s
investment problems they are inter
esting to the person who wants to
“call his shots” somewhat without as
suming the full risk of picking indi
vidual stocks.
5. Fully Managed Funds: As con
trasted with the foregoing types of
funds, the “fully-managed” fund is in
theory—and maybe in practice—fully
flexible as to the type of securities
held at any time. Obviously such a
policy presents the greatest possible
challenge to the management, and of
fers the shareholder proportionately
greater possible rewards, provided the
MUTUAL FUNDS? . . .

(Turn to page 48, please)

50 L A R G E S T
A M E R IC A N MUTUAL FUNDS
Total Net Assets— December 31, 1954
(000’s)
1. Mass. Inv. T ru st......................$791,074
2. Inv. Mutual, Inc............ .......... 732,248
3. Wellington Fund, In c ............ 401,788
4. Affiliated Fund, Inc................ 311,494
5. Keystone Oust. Funds, Inc... 282,539
6. Fundamental Inv., Inc.......... 256,251
7. National Securities Series ... 224,416
8. United Funds, I n c ................. 197,241
9. Dividend Shares Inc............... 170,219
10. Fidelity Fund, Inc.................. 163,686
11. Ins. Securities Inc................... 157,030
12. Eaton & Howard Bal. Fund 141,443
13. Boston Fund, Inc.................... 124,625
14. Inv. Stock Fund, Inc.............. 105,333
15. Geo. Putnam Fd. of Boston.. 100,902
16. Commonwealth Inv. Co......... 89,400
17. Group Securities .....................
83,222
18. Chemical Fund, Inc................. 78,416
19. TV-Electronics Fund, Inc..... 72,678
20. Broad St. Inv. Corp................ 64,138
21. Mass. Inv. Growth Stock
Fund, Inc..................................... 63,642
22. Century Shares Trust............
51,386
23. Diversified Inv. Fund, Inc... 50,403
24. Scudder, Stevens & Clark
Fund, Inc................................ 49,360
25. Natl. Investors Corp. Fund.
47,218
26. Axe-Houghton Fund A, Inc. 42,555
27. Axe-Houghton Fund B, Inc. 41,737
28. Loomis-Sayles Mutl. Fd., Inc. 41,579
29. Selected Am. Shares, Inc..... 39,552
30. Eaton & Howard Stock
38,093
Fund .........
31. Value Line Inc. Fund, Inc... 33,044
32. American Bus. Shares, Inc... 33,406
33. Managed Funds, Inc.............
31,864
34. Financial Ind. Fund, Inc...... 31,449
35. Canadian Fund, Inc................ 30,892
36. Hamilton Funds, Inc.............
28,032
37. Gas Industries Fund, Inc...... 26,917
38. Manhattan Bond Fund, Inc. 25,472
39. Blue Ridge Mut. Fund, Inc. 24,032
40. Nation-Wide Sec. Co., Inc... 23,445
41. Colonial Fund, Inc., The...... 22,871
42. Bullock Fund, Ltd.................. 22,057
43. Massachusetts Life Fund .... 21,447
44. Inv. Selective Fund, Inc. .... 20,990
45. Texas Fund, Inc......................
20,456
46. American Mutual Fund, Inc.
19,562
47. General Capital Corp.............
17,921
48. Institutional Shares, Ltd...... 17,422
49. Knickerbocker Fund, The.... 15,814
50. Shareholders’ Tr. of Boston 14,092
(This list provided by Doremus
& Company, New York)
Northwestern Banker, March, 7955

investments

Hoir W ould 1 on im p rovo
INCE all bankers are interested in improving their
bank’s investment portfolios, both for return and
safety, the N o r t h w e st e r n B a n k e r asked a number of
city and country bankers for their suggestions for im
proving the bond accounts of two “typical” banks. One
bank has total assets of $2,326,000 and has no surtax prob
lem, while the second bank has total assets of $6,370,771
and must give consideration to its surtax problem.
Specific details of the deposit and loan breakdown were
not given, but each banker responding to the survey took
this into consideration as shown in the replies on these

a s o

o .

FIRST COUNTY B A N K
ASSETS
Casli and Due from Banks............ $ 510,000
TJ. S. Government Bonds................. 1,100,000
21,000
State, County Municipals...........
Loans and Discounts........................
685,000
8,000
IBank Building & Fixtures...........
Other Assets .......................................
2,000
TO TAL ASSETS ........................$2,326,000
L IA B IL IT IE S
Capital .... ............................................. $
50,000
50,000
Surplus ..................................................
Undivided Profitsand Reserves..
66,000
Deposits ................................................ 2,160,000
TO TAL L IA B IL IT IE S ........$2,326,000

ALFRED H. LINDGREN
Vice President
C it y National B. & T. Co.
Chic ago, Illinois

We shall keep in mind that this
bank has no serious tax problem and
while it is the desire of the manage
ment to earn a reasonable return for
their stockholders, their primary ob
jective is to recognize the very real
responsibility to their depositors. How
ever, we do not
subscribe to t h e
theory that a bank
should be run to
day as though a de
pression is j u s t
around the corner
nor do we believe
that a bank should
ignore the fact that
we w i l l h a v e
changes in economa . h . L IN D G R E N
conditions. In
our opinion a middle of the road polily is best for this bank.
As we see it, assuming there are no
unusual factors involved, a sound inern Banker, March, 1955
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two pages. It was interesting to note that one banker
replied, “ This has all the earmarks of a ‘mythical’ bank,”
while two other bankers said they preferred not to com
ment since “the case shown is almost identical” to their
own situations.
Suggestions from bankers responding to this survey
show the importance of proper maturities throughout the
investment portfolio, and also the value of adding munici
pals in the right quality and quantity. Read the case his
tories of these banks then compare your solution with the
replies which appear on these pages.

F ir s t t o n a t y

B a n k

This bank, which is a non-member of the
Federal Reserve, is located in a good
farming area. This bank does not fall in
the surtax bracket.
This bank’s net profit in 1954 was $17,000. It is a locally-owned bank. Officers
and directors are seeking to improve the
stability and net return of their invest
ments. Maturities of governments are all
5 years or less, returning an average of
1.3% . Other securities consist of county
school bond issues which produce 214%
and are due in 5 years.
What suggestions would you make for
this bank in regard to investments? What
schedule of government maturities would
you recommend? Would you consider the
addition of more municipal issues?

vestment policy would be to keep be
tween 15 and 20 per cent of deposits
in cash at all times and a total of not
less than 30 per cent in cash and sec
ondary reserves. By secondary re
serve we mean investments in govern
ment securities due within one year
which by reason of their short matuturity are little vulnerable to market
fluctuation.
On this basis the “First County
Bank” has too much cash and could
invest an additional $100,000 unless
there is some contemplated need for
it in the near future. With about
$410,000 in cash, it would leave about
$250,000 to be invested in short matu
rities. Treasury bills are, of course,
the most liquid for secondary reserve
and if the banker knows from expe
rience that he has seasonal trends in
his needs for cash, this type of in
vestment would be advisable. Keep
in mind that he should try to main
tain the 30 per cent minimum cash
and secondary reserve position even
if his loans increase, unless the in
crease in loans are C.C.C. notes, or

something comparable, that being re
deemable on demand can by them
selves be considered as secondary re
serve.
The balance of the account we be
lieve can be invested in maturities up
to eight years with a preponderance
or at least 60 per cent due within five
years. On this basis the bank could
invest about $600,000 in maturities
from two to five years and the issues
that might be considered are as fol
lows:
$100,000 1% per cent notes due
3/15/56 yielding 1.62 per cent
150.000 2 per cent notes due
8/15/57 yielding 2.12 per cent
150.000 2% per cent bonds due
6/15/58 yielding 2.31 per cent
100.000 2% per cent bonds due
12/15/58 yielding 2.33 per cent
100.000 2 Vs per cent bonds due
11/15/60 yielding 2.39 per cent
This then leaves $350,000 that can
be invested in the following:
2 V-2 per cent bonds due 11/15/61
yielding 2.59 per cent
2 V2 per cent bonds due 8/15/63
yielding 2.60 per cent
(In view of the small difference in
yield, the 1961 maturity appears more
attractive at this time.)
According to our computations, the
investment of $1,200,000 would then
produce an average yield of approxi
mately 2.09 per cent as compared to
the present 1.30 per cent, or an in
crease of annual income before taxes
of over $9,000 if the bill rate doesn’t
fall below 1 per cent.
The “First County Bank” will still
have more than 50 per cent of its toFIRST COUNTY BANK . . .

(Turn to page 42, please)

Investments

These K om i P ortfolio s?

No. 2
FIRST N A T IO N A L B A N K
ASSETS
Cash and Due from Banks...............$1,188,474
U. S. Government Bonds.......... ...... 2,762,800
Other Securities ................................
200,773
Loans and Discounts ...............
2,198,724
Other Assets .................................
20,000
TOTAL ASSETS ........................ $6,370,771
L IA B IL IT IE S
Capital .................................................. $ 100,000
Surplus ........................................
175,000
Undivided Profitsand Reserves..
153,396
Deposits ................................................ 5,942,375
TOTAL L IA B IL IT IE S ........$6,370,771

E. B. C H A P IN
Assistant Vice President
First National Bank
Saint Paul, Minnesota

This hypothetical First National
Bank appears to be unusually liq
uid even after making allowances for
a 10 per cent increase in loans and
a similar contraction in deposits. The
average return on the government
portfolio is very low and would indi
cate that this bank probably holds a
substantial volume of Treasury bills
and certicates of indebtedness.
I would recommend that from $500,000 to $700,000 be shifted to govern
ments in the three
to eight year matu
rity r a n g e which
c u r r e n t l y yield
from about 2 per
cent to better than
2.50 per cent. In
view of the present
depressed govern
ment bond market
and the apparent
short average ma
E . B. C H A P IN
turity of the port
folio, this shift could probably be
made with a minimum loss and would
result in a greater return on its invest
ments. Consideration should also be
given to the purchase of about $25,000
of the FNMA notes maturing in 1958
and perhaps $50,000 of railroad equip
ment trust certificates in blocks of
$5,000 to $10,000 each.
This bank is rather heavily concen
trated in local county bond issues. In
view of the fact that the bank is in
the 52 per cent tax bracket, I would

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Federal Reserve Bank of St. Louis

T ir s i N a tio n a l H a n k

This bank, located in a good agricultural
area, is in the surtax bracket.
This bank’s net profit in 1954 was $47,000. It is a locally-owned bank, whose offi
cers and directors are seeking to improve
their net return and maintain stability.
Maturities of governments are all 5 years
or less, with a return averaging 1.3% .
Other securities consist of county bond
issues which produce 2 % and mature in 5
years.
What suggestions would you make for
this bank in regard to investments? What
schedule of government maturities would
you recommend? Should this bank con
sider the addition of more municipal
issues?

further suggest that consideration be
given to the purchase of an additional
$100,000 in municipal securities out
side of its own locality. Holdings of
municipal obligations by all banks
average about 5 per cent of total re
sources.
Such a shift in this bank’s invest
ment portfolio would not impair the
liquidity, would provide greater diver
sification of its holdings and would im
prove net earnings considerably.
DEAN V O G E L
Vice President
United St ates National Bank
Omaha, Nebraska

Considerable time and effort has
been spent in study of these figures
with the hope that I could intelligent
ly answer the questions you proposed.
To appraise intelligently the invest
ment policy and needs of a bank, I
think one should know quite minute
ly the make-up of the loan portfo
lio. This is perhaps even more par
ticularly true in a bank located in an
agricultural district for they have
from time to time the opportunity to
carry large amounts of commodity
credit paper. This, of course, would
well affect their investment portfolio.
I think it is imperative today that a
person charged with the handling of
the investment portfolio be very fa
miliar with the type of deposits the
bank has, giving particular attention
to the amount of time money.
The case presented certainly indi
cates a splendid operation. Their cash
reserve almost to the dollar is 20 per
cent of their total deposits which in

dicates that they keep their money
well invested. The risk ratio of this
bank is 17.71 per cent, which is ex
ceedingly good and the net earnings
to the capital accounts at the end of
the year amounted to 10.97 per cent.
This represents good earnings, partic
ularly so because the $47,000 increase
in their undivided profits and reserve
account was earned during the year
1954.
You state in the case that the aver
age return on governments is 1.3 per
cent, which indicates to me that they
are rather heavily invested in bills be
cause in a government portfolio with
about one-fifth of the bonds maturing
each year over a five-year period, they
could earn about 1.9 per cent.
The yield on county bonds you state
produced 2 per cent interest and ma
ture in five years. This seems to me
to be rather high for AA municipal
bonds are currently selling on a 1.35
to a 1.45 basis with a five-year matu
rity. If, in this hypothetical case, they
can purchase additional county bonds
maturing in five years on a 2 per cent
basis, it would seem advisable that
some of their governments be allowed
to run off and the funds reinvested in
municipals.
J. W. EDGE
President
Farmers Trust and Savings Bank
Spencer, Iowa

I feel that the operation and profits
could have been much better had the
officers given some thought to tax-ex
empt earnings.
Had the bank been operating with
$1,000,000 of municipals and about
$2,000,000 governments instead of all
governments yielding a rate of only
1.3 per cent there would have been
no excess profits tax and only about
one-half the normal tax paid. It would
seem that this bank has been requir
ing the note case to carry too much
of the overhead. In other words, with
no tax-exempt income they have had
to loan more money with which to
pay more taxes. At least $20,000 of
their income should have been ex
empt.
FIRST NATIONAL BANK . . .

(Turn to page 46, please)

Northwest ern Banker, March, J9SS

Investments

F irst C ou n ty H ank
(Continued from page 40)
tal deposits in cash and government
securities due within five years and
74 per cent of total deposits in cash
and government securities which cer
tainly would seem to be ample protec
tion against the uncertainties of the
future. The reason we suggest a mid
dle of the road policy of spaced ma
turities is that it affords a good hedge
and the opportunity to reinvest or col
lect a portion of the account from
time to time and yet the bank is get
ting a much more satisfactory return
than if all the funds were consistently
invested in short maturities.

The time to adjust maturities in a
case of this kind is when the market
is “right” and whether this is the
proper time is anyone’s guess. The
bond market has been declining and
may go lower which we cannot pre
dict, but we do know that this is a
better time to extend maturities than
it was a few months ago. It may not
be prudent to quickly switch into this
program by liquidating issues present
ly held if to do so would result in a
substantial loss but if the bank is now
heavily invested in Treasury bills or
very short maturities, it will not be

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too difficult to accomplish. Otherwise
the policy we suggest can be consid
ered as a goal that can eventually be
achieved as conditions and circum
stances permit.
As this bank is not in the surtax
bracket, they should not, in our opin
ion, add to their municipal holdings
unless in the future they have an op
portunity to acquire additional local
issues as a community project and
where they- are in a position to make
an appraisal based on a full knowl
edge of the considerations involved.
LUD C . VOBAYIDA
Vice President
First National Bank
Minneapolis, Minnesota

The below average earnings from
the bond account and loans and dis
counts indicate that the officers of the
First County Bank must be doing an
excellent job in producing income
from miscellaneous sources such as in
surance, commissions, exchange and
service charges, in order to show a
net profit of $17,000 after taxes.
All banks in Minnesota averaged
37.8 per cent of all assets invested in
loans on June 30, 1954, whereas this
bank shows only 29 per cent loaned
out. However, the bond account is the
real loafer in this
case. J u s t as a
dairyman watches
for t h e “boarder
cow,” the banker
should watch each
potential i n c o m e
producer. The 1.30
per c e n t average
r e t u r n suggests
that the bond ac
count must consist
L . C. V O B A Y D A
la r g e ly G f U. S.
Treasury bills and certificates due
within a year or two.
If we can assume that the First
County Bank has some savings or time
deposits, upon which interest is being
paid, it follows logically that some
longer U. S. government bonds can
safely be carried. A proper spacing
of maturities out to 8 V2 years would
still provide the necessary liquidity
and improve the yield on the bond ac
count to an average of 2 per cent.
The U. S. Treasury’s 21J>s of 1961
and 1963, now selling below par, preW ayn e H u m m er
CHICAGO

Ca r l e t o k D .B e h
«ELETYPE NO D M i
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C o

IN V ESTM EN T S E C U R IT IE S
DES

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BUILDING

D e s M o in e s , I o w a
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EXCH AN GE

Co.

Investments
sent this bank with an unusual oppor
tunity to extend the average maturity
by only a few years and get the aver
age yield up to 2 per cent. The matu
rity extension can be even less and
result in such an average yield by in
cluding in the bond portfolio some of
each of the various obligations of the
U. S. governmental agencies such as
the F e d e r a l Intermediate Credit
Banks, Federal Land Banks, Banks for
Co-operatives, Federal Home Loan
Banks and Federal National Mortgage
Association. These will yield from
1.60 per cent for nine months up to
2 V2 per cent for three years.
Municipals are not the compelling
need that they are to the banks show
ing earnings of over $25,000 before
taxes, but some increase in the mu
nicipal account would also be very
helpful, in an amount which can prob
ably be carried to maturity. Sound
municipals can now be selected yield
ing 2 per cent in 10 years, but even
shorter bonds with a 1% tax-exempt
yield would be equivalent to 2% per
cent taxable income to this bank.
The First County Bank’s net earn
ings before taxes appear to be only
1.04 per cent of all assets and should
be about 1.25 per cent in a country
bank that has the usual miscellaneous
income in addition to interest on loans
and bonds. During these prosperous
times, the earnings should be large
enough to prepare for some losses on
loans later on. The sound bank
should be well balanced between li
quidity and good earnings and neither
ought to be overstressed.
ARDEN D. W O L F
Vice President
Platte Valley Bank
North Bend, Nebraska

Offhand, I would think that the
“ First County Bank” has too many
government bonds and not enough
state or county municipals. Their reg
ular loans probably could be a bit
higher which would materially in
crease their earnings. Most of the ma
turities on their bonds are too short,
we believe, to yield them a good re
turn.
They certainly could use a few
bonds with longer maturity.
CLARK W ECKBACH
President
First National Bank
Ord, Nebraska

We, of course, do not know the
above bank’s ratio of time and demand
deposits nor if they have a fluctuating
loan volume. It would appear, regard
less of net profits, the earnings per
dollar of assets is low. It seems that
the capital account is more than ade
quate for the loan demand. It would
seem a spaced maturity for govern

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Federal Reserve Bank of St. Louis

ments would increase the yield with
out taking any undue risk, with maxi
mum maturities not to exceed 10
years. It is doubtful if municipals,
etc., would help this bank as much
as the average bank, due to the fact
that it would not have a particularly
serious tax problem. It would look
like the bank has a low salaried staff.
This particularly in view of the fact
that ordinarily banks in good farming
areas do not have a wide deposit fluc
tuation.
FRANK R. WARDEN
Vice President
C e n tral National B. & T. Co.
Des Moines, Iowa

Providing the ratio of loans to de
posits as shown in the statement of
condition of the “First County Bank”

ment bond holdings, the amount de
pending on the experience of the indi
vidual bank—stability of deposits, sea
sonal demand for loans, etc. The pro
ceeds to be reinvested in obligations
of U. S. Governmental Agencies and
a well diversified list of high grade
railroad equipment trust certificates
and good quality municipal bonds.
Due to the present sensitivity of the
bond market and the existing uncer
tainties relative to the future policy
of the Federal Reserve and the open
market committee, such new invest
ments should naturally consist of stag
gered maturities of from one to not to
exceed five years. Likewise the ma
turities of U. S. government holdings
should not be extended at this time for
the reasons given.
In following out such a policy, earn
ings would be increased materially
and without affecting the soundness
or the necessary liquidity of the in
vestment account.
S. R. BARBER
Vice President and Cash ier
Wellman Savings Bank
Wellman, Iowa

W ARDEN

A sale of a portion of U. S. governrepresents a more or less constant
average and neither are subject to
wide seasonal fluctuations, we believe
the following brief suggestions should
be considered in order to improve
earnings.

In attempting to determine the type
of bond portfolio this bank should
have, several unknowns should be con
sidered. For example, the deposit
turnover, the relation of time to de
mand deposits, the amount of large
deposits, the amount of public funds,
seasonal fluctuations of both loans and
deposits and several other factors
which influence the investment pro
gram.
Not knowing these conditions we
shall assume a rather typical situation
in making our observations.

Sixty-Six Years of Investment Banking

Underwriters

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Northwest ern Banker, March, 1955

investm ents

We would recommend working to
ward a spaced bond portfolio covering
a period of five years. With approxi
mately $200,000 maturing each year for
five years the bank would obtain an
average yield which is all that a coun
try bank should hope to accomplish
and which the hypothetical bank has
not attained as is indicated by the
yield of 1.3 per cent which they are
now earning on their governments.
A portfolio spaced over five years
would also serve to minimize interest
rate risk since any change in the pure
rate of interest would not greatly af
fect a portfolio with an average length
of only two and one-half years. At
present this would produce a yield of
something like 1.9 per cent. This is
not a great money maker; however,
we do not feel that a bank should
reach out into the longer maturities
for a higher yield due to the very
great increase in interest rate risk.
Corporates should not be considered
in our opinion due to the inability of
the typical country bank to properly
supervise corporate bonds as well as
to the lack of sufficient rate differen
tial to compensate for the added de
gree of financial risk.
In view of the small municipal port
folio, the fairly sizable cash reserve
and the short government position, it
might well be desirable to consider in
creasing the municipals to say $100,-

000, consisting of diversified, high
grade I o w a municipal obligations
spaced over not more than five years.
This would produce a tax free yield
of about 1.3 per cent at present which
would be equivalent to a yield of 1.95
per cent on taxable securities.
F. H. KOUBA
C ashie r
Roberts County National Bank
Sisseton, South Dakota

In comparing the statement of the
“ First County Bank” with the state
ment of our bank they compare about
the same in size.
I believe that $500,000 of the U. S
bond account could be reinvested in
bonds maturing for a period beyond
the five years up to 10 and still leave
the bank in a very good liquid posi
tion.
Of this amount $100,000 could be in
vested in several issues of municipal
bonds maturing over a period not over
10 years which would return about
the same yield but tax-wise there
would be a saving, thereby increasing
the net profit account.
I also believe about $200,000 should
be invested in Federal Land Bank
bonds at 214 or 2% per cent maturing
within a five year period and which
can be purchased about a point or so
below par. The balance of $200,000
could be invested in U. S. bonds ma
turing from five to 10 years bearing

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214 per cent and which also can be
purchased below par. With this
change the net profit could be im
proved by $2,000 or more and still
keep the bank in a good stable condi
tion.
C. W. GRIM ES
Executive Vice President
The First National Bank
W est Union, Iowa

First of all, I would lengthen the
maturities of the government bonds
and would suggest the following pat
tern:
Twenty-five per cent in U. S. Treas
ury bills, notes and certificates due
within one year.
Twenty-five per cent of the account
in U. S. Treasury bonds and notes due
within a one to five year period.
The balance of the bond account
or 50 per cent due within 10 years
and most of these due between a six
and eight year period.
I feel by doing this you would in
crease the return on the bond account
from an average of 1.3 per cent to an
average of approximately 2 per cent,
or better.
Since this bank does not have to
meet a reserve requirement, I would
keep the cash and due from banks at
a minimum, possibly 20 per cent of
deposits, which would mean there
could be another $50,000 to $75,000
invested in bonds. I would suggest
investing this in a high grade general
obligation municipal bond with stag
gered maturities of not more than
seven or eight years. By lengthening
the maturities and thereby increasing
the yield, I believe several thousand
could be added to the bank’s earnings.
All these suggestions are made with
the thought that the demand for local
loans would remain at about the same
level.
E. M. HUNT
Vice President
F irst Trust Company
Lincoln, Nebraska

I have outlined my thoughts in gen
eral terms to be more practical and
to eliminate questions regarding mi
nor variations from my general out
line. It is so easy to differ as to
whether a bank should go out as far
as five years, seven and one-half years
or 10 years, that working up a de
tailed program did not seem to me
appropriate.
In my opinion the government bond
portfolio should be reduced and ex
tended as to maturities. The munici
pal investment should be increased. I
would accomplish this in the follow
ing manner:
I feel that the government bond
portfolio should be reduced by approx
imately $200,000. This reduction of

Investments
$200,000 would be reinvested in mu
nicipal bonds.
Inasmuch as the bank does not fall
in the surtax bracket, I believe that
the limitation of maturities to five
years or less and the acceptance of
the low rate of return available upon
those issues is necessary. I do not
mean by that, that I think the bank
should extend the entire government
portfolio, but I do feel that the ma
turities could be extended sufficiently
to produce a decidedly better return,
retain ample liquidity and stay within
a 10 year range.
I firmly believe that liquidity is es
sential to a commercial bank, but I
have the feeling that our conditions
have changed sufficiently that it is not
necessary to retain investments with
in the five year maturity limitation.
Naturally, the extension of maturi
ties would depend upon the individual
situation, the type of deposits and the
possibility of a sudden reduction in
over-all deposits. The exact maturity
composition of the government port
folio will depend to some extent upon
the adjustment of the municipal port
folio to one of the two options which
are suggested.
I feel that a bank is acting most con
servatively if it has 10 per cent of its
deposits invested in municipal bonds.
In the case of a municipal portfolio
two policies may be followed:
(1) Maturities may be e q u a l l y
spread over a period from one to 10
years;
(2) In order to obtain a better yield,
maturities may be spread between the
five and 10 year range. If the latter
option is chosen, some adjustment of
the government bond portfolio with
greater emphasis on the earlier years
will be necessary.
Well chosen municipals within the
10 year maturity range can add sub
stantially to the income of the bank
and ample liquidity can be main
tained. Because the income from mu
nicipal issues is completely tax free,
we have often recommended a greater
concentration of governments in the
one to five year maturities with more
emphasis in the municipal portfolio in
the five to 10 year maturities.
There is a somewhat greater in
crease in municipal yields in a slight
extension of maturities than is re
flected in the same range of maturi
ties in government bonds. This makes
it possible for a bank to extend its
municipal maturities slightly and im
prove its income substantially.
The plan is completely flexible and
adjustable to the problems of any in
dividual bank. I feel sure that the
basic plan is sound. This has been
proven by actual operation over a pe
riod of the past 15 years.—End.

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Federal Reserve Bank of St. Louis

Distribute Manual
The second supplement to the “Man
ual of Laws Relating to Loans and
Investments by National Banks” is
now being distributed by the national
bank division of the American Bank
ers Association, it was announced re
cently. The replacement sheets—cov
ering laws enacted by the 83rd Con

gress, and changes, additions, inter
pretations, and opinions issued by su
pervisory authorities — are intended
for insertion in the November, 1952,
looseleaf edition of the manual.
The manual is a reference volume
used by national banks in keeping
abreast of laws pertaining to their
lending and investment operations.

MUNICIPAL BONDS
FOR INVESTMENT
STATE
COUNTY
CITY
SCHOOL
FREE FROM ALL FEDERAL INCOME TAXES
FREE FROM M ONEYS AND CREDITS TAX IN IO W A

THE WHITE-PHILLIPS C O ., INC.
First National Bldg.
Davenport Iowa

MORRISSEY

First National Bank Bldg.
Chicago 3, Illinois

& CO.

MUNICIPAL BONDS EXCLUSIVELY
110B Dâvenport Bank Building

DAVENPORT, IOW A

Northwestern Banker, March, 19SS

Investments

F irst

N a tion a l Itaii/i
(Continued from page 41)

This matter of municipal invest
ment is a day to day and month to
month program. A long period of
time is required to build a good sound
municipal account. It also takes time
and study which many hankers are
not seemingly willing to give, but in
my opinion, it brings large net re• turns to the stockholder.

JAMES C. SHAW

HA RRY L. W E S T P H A L
Vice President
lowa-Des Moines National Bank
Des Moines, Iowa

Assuming deposits of $6,000,000 and
loans of $2,200,000, this bank under
discussion might adopt the following
measures:
Their U. S. governments should be

CHARLES H. McDOWELL

OWEN P. McDERMOTT

& aw, M cDermott & f^o.
MUNICIPAL BONDS EXCLUSIVELY
Underwriters and Distributors
of
County, City, School and Revenue Bonds
916 Liberty Bldg.
DES

Northwestern
Banker, March, 1955
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Federal Reserve Bank of St. Louis

approximately 38 per cent of total de
posits. This would mean $2,262,800.
From one to two hundred thousand
dollars could be carried in U. S. Treas
ury bills in order to handle any situa
tions arising in regard to their cash
With the above
liq u id ity , govern
ments c o u l d be
spaced out through
1963 and u n d e r
p r e s e n t market
conditions the bank
could certainly ex
pect to realize an
average return of
around 2 per cent.
We m i g h t fur
H. L. W E S T P H A L
ther suggest 15 per
cent maturing within one year, 50 per
cent maturing within one to five years,
and 35 per cent maturing within five
to 10 years.
Municipal bonds could be 12 per
cent to total deposits. This would
mean around $700,000 in the case of
this “ First National Bank.” We feel
that a maturity scheduling from one
to 10 years with $70,000 coming due
each year would be the ideal situa
tion. In light of present market con
ditions, the bank should realize ap
proximately a 1.6 per cent tax free
return.—End.

Phone 3-6119
MOINES

IOWA

Honor Hanover Officer
Daniel A. del Rio, vice president of
The Hanover Bank, New York, re
cently was honored by the Cuban Gov
ernment with decoration of Grand Offi
cer of the National Order of Merit,
Carlos Manuel de Cespedes.

Plan New York Merger
Bankers Trust Company, New York,
the nation’s ninth largest commercial
bank, plans to merge with Public Na
tional Bank & Trust Company, New
York, which ranks 43rd in the coun
try.
S. Sloan Colt, president of Bankers
Trust, and E. Chester Gersten, presi
dent of Public National, announced
the proposed merger last month. They
emphasized the proposal is subject to
the approval of the directors of both
banks, their stockholders and regula
tory authorities.
Mr. Colt and Mr. Gersten said they
have discussed the merger terms on
the basis of one and one-eighth shares
of Bankers Trust stock for each share
of Public National stock.
If the merger goes through, the com
bined organization would operate un
der Bankers Trust Company’s charter.
All personnel of both banks is to be
retained, according to the announce
ment.

T rea su ry9s Successful ilefu n d in y
W ill Influence Investm ent ) l urite!
Conversion of Maturing Debt Into Long-Term Issues
Was Wisely Contrived and Happily Timed
B y R A Y M O N D TR IG G E R
Investment Analyst
New York City

“competitive” with other transactions
in the new capital market, and that
even a small borrowing for cash—
like the Humphrey issue of 1953 —
might precipitate the nation into a de
pression.

in investment
m a r k e t s will be influenced
strongly for a long time by the
Treasury’s successful refunding of
nearly $2,000,000,000 of maturing debt
into a non-callable, 40-year bond issue.
Over the past year or so a thousand
measurements were taken for “the
long-term issue” and many people
were beginning to think that it would
never come about. But it did.

evelopm ents

The conversion into long debt—the
first since the ill-starred Humphrey
314 s put out in 1953—was shrewdly
contrived and happily timed. The ex
change was limited to holders of the
maturing partially tax-exempt 2%s per
cent bonds due in 1960 and called for
payment March 15. Only $2,611,000,000 of this issue was outstanding and
most of the bonds were held by com
mercial banks.
The community of government bond
dealers did an excellent job in effectu
ating the transfer of the 2 7/ss from the
banks and other short-term investors
and simultaneously placing the new
40-year 3s on a when-issued basis with
pension funds, insurance companies,
savings banks and other traditional
long-term investors. The prudent
terms decided upon by the Treasury
were, of course, the factors of crucial
importance in making the transaction
successful.
The conversion of the 2%s was only
one part of the refinancing. Altogeth
er, the transaction encompassed $14,983,000,000 of maturing debt. Besides
the 2% per cent bonds were $7,007,000,000 of 1% per cent certificates of
indebtedness due February 15 and
$5,365,000,000 of IV2 per cent notes due
March 15. More than half of the cer
tificates were held by the Federal Re
serve System and were exchanged by
the central bank for new short-term
obligations.
Exchange Options

The exchange options offered to in
vestors included a 13-month 1% per
cent note and a two and one-half year
2 per cent note. Of the maturing debt,

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Federal Reserve Bank of St. Louis

$8,450,000,000 was turned in for the 13month note and $3,784,000,000 for the
two and one-half year note. The ex
changed securities totaled $14,151,000,000, leaving $832,000,000,000 u n e xchanged, which the Treasury had to
redeem in cash.
Apart from the success of the big
transaction and the immediate impact
of the long-term conversion on the
yield structure of basic public debt and
corporate investments, the introduc
tion of the 40-year bond is bound to
have profound influence on contempo
rary financial and economic thought.
Fuzzy Thinking

There had been a lot of fuzzy think
ing about public debt questions in re
cent years, most of it stemming from
the temptation to regard the Treasury
primarily as an equilibrator of the
economy and only secondarily, if at
all, as a borrower like anybody else in
need of funds. On the fringe of this
thinking, moreover, is the idea that
the government can change the going
rate of interest significantly by the
rate it designates for a relatively small
bond issue. Further, the notion has
got wildly around that a long-term
government borrowing is dangerously

The unfortunate market experience
of the 314 per cent bond put out in
1953—a minor transaction whose offer
ing terms were inexpertly conceived
by the Treasury and exploited by spec
ulative interests—did much to impart
plausibility to the arguments of chron
ic critics of any long-term government
financing. A major achievement of
the long-term conversion just com
pleted will be to dispel the fog sur
rounding public debt management and
bring the subject back into something
like the focus that existed before the
debt was straitjacketed into a frozen
interest rate pattern to serve the fan
cied needs of war finance.
The availability of a truly long-term
segment of the public debt in market
able form is bound to take some of the
heat off the smaller issue of Hum
phrey 314s, which up until now has
been an inadequate yield anchorage
for the Treasury debt at the long end.
The wide price swings that have char
acterized the market history of the 314
per cent bond can be expected now to
be stabilized within a range of fluctua
tion of much less extent.
Significant, too, is the realization
that now that the Treasury has vindi
cated the long-term borrowing func
tion, further issues of extended term
can be expected from time to time.
Savings Bond Debt

Perhaps ways can be devised to con
vert some of the savings bond debt—
at present a demand payment commit
ment for the Treasury—into long-term
investments. With the passage of the
great depression and its sequel of “to
tal war,” it is likely that the “ long
term 2 V2 per cent rate” is gone for
good and that a 3 per cent rate will
from now on more reasonably reflect
the productivity of capital invested in
long-term Treasury debt.—End.
Northwest ern Banker, March, 1955

Investments
in relation to the general stock
A b o u t A in t n a I F u n d s ?down
market. The index he uses is the per

W hat

(Continued from page 39)
management’s decisions are predomi
nantly correct.

tire compensation of the distributor,
dealer and salesman involved in mak
ing these shares available, plus the
cost of any advertising and sales lit
erature-—for the fund itself is not per
mitted to expend shareholders’ money
in sales or promotion of any kind. It
should be noted, however, that this
sales charge is a “round trip” and that
most funds stand ready at all times
to buy back at the then asset value
without commission any shares of
fered for redemption.
For this moderate “premium” the
buyer gets an interest in a broadly
diversified portfolio of securities se
lected and constantly supervised by
professional investors whose record is
an open book. The continuing charge
for this professional management usu
ally runs around one-half per cent of
the net assets, or about 50 cents per
annum for each $100 invested. Is the
service worth the cost?

The buyer of mutual fund shares
pays the pro-rata market price of the
securities in the chosen fund’s port
folio plus a sales charge which aver
ages about 7V2 per cent of the “asking
price” when he buys the shares. This
TVz per cent “premium” covers the en

Picture o f Performance

While investment results vary wide
ly between individual funds, and
should be studied carefully by pros
pective investors, a classified summary
of results recently published by Ar
thur Wiesenberger, a New York spe
cialist, gives an interesting picture of
performance over the last ten event
ful years.
Mr. Wiesenberger sets up t h r e e
broad classes of mutual funds accord
ing to “volatility,” meaning simply the
rate of price movement both up and

centage gain in value including all
dividends and special distributions of
security profits from January 1, 1945
through December 31, 1954. On this
basis the three classes show the fol
lowing results:
Total Gain
in Value
Group 1:
Above Average Volatility. .208%
G roup 2:

Average Volatility ............. 100%
Group 3:
Below Average Volatility.. .128%

These figures make it clear why
many people who are seeking income
and possible appreciation are looking
with interest at mutual funds and why
more than 1,500,000 conservative in
vestors now own mutual fund shares
worth about $6 billion.—End.

Investment School
The third annual session of the Insti
tute of Investment Banking will be
held at the University of Pennsylvania,
Philadelphia during the week of April
4, it was announced by Walter A.
Schmidt, partner, Schmidt, Poole, Rob
erts & Parke, Philadelphia, president
of the Investment Bankers Associa
tion of America.
Sponsored by the education commit
tee of the IBA in cooperation with the
Wharton School of Finance and Com
merce, the Institute provides a three
year executive development program.
It is designed for partners and officers
of member firms and other seasoned
personnel who are being groomed for
positions of greater responsibility.

Edwin H. Mayer
Edwin H. Mayer, advertising man
ager of the Mosler Safe Company,
Hamilton, Ohio, died last month at the
age of 76. He had been employed by
Mosler for 53 years, having been sales
manager for 13 years and advertising
manager for 25 years.

THE BEST SALESMEN!
Your c o mmu n i c a t i o n s and printed
me s s a g e s are frequently your best
salesmen. That's why it is an excellent
investment to depend upon Newhouse
Paper Company for highest quality
paper.
•

Honor Warehouse Officer

•

NEWHOUSE PAPER COMPANY
44Better Printing Papers”
M inneapolis

S t. Paul

Northwestern Banker, March, 1955

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Federal Reserve Bank of St. Louis

Des Moines

Moline

Dubuque

Harry D. Hamilton, public relations
d i r e c t o r of the Douglas-Guardian
Warehouse Corporation and the Doug
las Public Service Corporation, has
been elected a vice president and di
rector of The Merchants Coffee Com
pany of New Orleans Limited. This
company was founded in 1901 and Mr.
Hamilton’s father was one of the
founders.
The new affiliation will in no way
affect Mr. Hamilton’s status with the
Douglas interests, as he will continue
to be active with them.

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Federal Reserve Bank of St. Louis

Northwestern Banker, March, J95S

Investments

leet

Burroughs
N ew In vestm en t O fficers

Progress

World-wide operations of Burroughs
Corporation and its subsidiaries pro
duced revenue of $169,099,093 in 1954,
the highest in the corporation’s his
tory, John S. Coleman, president, an
nounced last month.
This was an increase of 5.4 per cent
over the 1953 total revenue of $160,455,068. (The 1953 figure is restated
to conform to certain accounting
changes made in 1954.)

N E W PEESID EN T of the Iowa Investment Bankers Association is John M. Beyer,
president and treasurer of Beyer-Bueffel and Company, Davenport. He is shown above
receiving congratulations at the annual meeting in Des Moines from retiring president
Glenn Ravenscroft, owner of Ravenscroft and Company, Cedar Rapids. At left is A . M.
MacLaughlin of Vieth, Duncan and Wood, Davenport, who is new first vice president.
At right is James Rasley, assistant cashier in the bond department, Iowa-Des Moines
National Bank, Des Moines, who was reelected secretary-treasurer. New second vice
president Douglas Conway was not present when this picture was taken.

Semi-Annual Dividend
A $600,000 semi-annual dividend was
announced recently by Walter R. Bimson, chairman of the board of the Val
ley National Bank, Tucson, Arizona,
following its approval by the directors.
The common stock dividend will be
payable in two quarterly installments
of 25 cents each—the first on March
22 to stockholders of record March 8,
and the second on June 22 to stock
holders of record June 8. Each in
stallment will total $300,000.

The $600,000 total represents a $150,000 increase over the amount paid out
in dividends in the first half of 1954.
A higher per share dividend rate paid
on a larger number of shares accounts
for the increase.
Of the 1,200,000 shares of Valley
National Bank stock now outstanding,
are owned by Arizona residents.
“ This means that more than $360,000
will be poured into the Arizona econ
omy alone in the form of cash divi
dends during the first half of 1955,”
Mr. Bimson noted.

It pays to keep posted
on Agricultural developments
“ Your advice saved m y farm” . . . “ I saved $10,000 by spending
$20 for the Digest.” . . . “ Fd have been $10,000 ahead if I had
follow ed your advice” . . . “ Your advice made me over $3,000.”

These extracts from some of the many letters we have received from
subscribers indicate the value of the practical advice of the

DOANE AGRICULTURAL DIGEST

pays to keep posted on agricultural developm ents.

production,

Doane Agricultural Service, Inc.
Dept. 608, 306 Plymouth Building, Des Moines 9, Iowa
Northwestern Banker, March, 1955

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Federal Reserve Bank of St. Louis

Earnings for the year from opera
tions in the United States and Can
ada, including dividends received from
subsidiaries operating in other coun
tries, amounted to $7,796,065, or $1.56
per share, compared with $7,206,655, or
$1.44 per share in 1953.
Revenue from operations outside
the United States and Canada was 14
per cent above 1953 and higher than
in any prior year.
The annual report will be mailed to
stockholders on March 15, 1955.

F.P.R.Á. Projects
One hundred and eighty-four proj
ects prepared by graduates of the
School of Financial Public Relations
are listed in the new 1955 catalogue
announcing the eighth annual session
of the school to be held at Northwest
ern University, July 25-August 6, 1955.
It has been mailed to all members to
use as a valuable reference book on
projects completed by graduates of the
school and placed in the association
library. The projects are valuable
sources of original information on a
variety of subjects and are available
to members on a loan basis.

A.I.B . Appointment

and its twice-monthly reports, not only to farmers, but to those whose
business is in any way connected with farming.
Such information enables bankers to make sound decisions and recom
mendations when advising farmers or business men doing business with
farmers.
More than 1900 banks renew their subscriptions each year because it
W rite for Free Sample Reports
which interpret trends and predict outlook on prices,
markets, shortages and surpluses ahead.

Although expenses for research and
development in 1954 were 39 per cent
above those of 1953, earnings from all
operations after provision for income
taxes totaled $9,146,514, compared with
$7,826,148 in 1953. Estimated income
taxes on the current year’s earnings
were $8,590,000, compared with $9,840,000 in 1953.

Edward L. Bittner of The First Na
tional Bank, Kansas City, Missouri, has
been appointed chairman of the na
tional public relations committee of
the American Institute of Banking for
the remainder of the current institute
year.
Mr. Bittner, who was a member of
the committee for 1954-55, takes the
place vacated by the resignation of
Mrs. Bessie P. Faddis of the Union
National Bank, Pasadena, California.

B of M Promotions
Important executive changes, affect
ing its organization in both eastern
and western Canada, have been an
nounced by the Bank of Montreal.
R. L. Bailey, manager of the Winni
peg main office of the Bank of Mon
treal, has been appointed assistant gen
eral manager supervising the bank’s
140 branches in Manitoba, Saskatche
wan and Alberta. He succeeds Leslie
L. Sinclair who is retiring on pension
after 45 years’ service with the B of M.
To succeed Mr. Bailey, the bank has
named William E. Stewart manager of
the Winnipeg main office. Mr. Stewart
goes to Winnipeg from Toronto where
he has been manager of the B of M’s
important King and Yonge streets
branch.
Succeeding Mr. Stewart is Robert
Smillie who has been superintendent
of the B of M’s branches in British
Columbia Yukon.
The new superintendent for the 87
branches of the bank in British Colum
bia and the Yukon is Fred S. Harrison
who goes to Vancouver after three
years in a similar capacity in Montreal
where he had supervision of the bank’s
branches in Quebec and Newfound
land.
Taking over from Mr. Harrison as
superintendent in Montreal is his as
sistant, Laurent Geliy, who was for
merly assistant manager of the main
office in Quebec City.

New Spencer Plant
Kenneth A. Spencer, president of
Spencer C h e m i c a l Company, an
nounced last month that the test run
of the company’s polyethylene plant
at Orange, Texas, was now in produc
tion.
In making this announcement, Mr.
Spencer particularly pointed out that
the operating section was started up
and placed in automatic control in a
matter of 15 minutes after initial pro
duction, and that since start up, opera
tion has been continuous. In the ini
tial run, conditions of operation were
varied to produce several satisfactory
grades of polyethylene material. Dur
ing this trial run the producing sec
tion was operated at approximately
80 per cent of designed capacity.

Crocker Changes
James A. Bacigalupi, Jr., assistant
vice president of Crocker First Na
tional Bank of San Francisco, has been
appointed advertising manager, ac
cording to an announcement by J. F.
Sullivan, Jr., president.
The advertising and business devel
opment activities are now under the
general direction of Hart H. Tantau,
vice president and coordinator.

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Federal Reserve Bank of St. Louis

CAN MAKE
A BANK LOAN SAFE!
Here's how your bank can make more
loans, earn more profit and keep cus
tomers more contented!
When a prospective borrower wants
more cash than you can lend on a nonsecured basis, suggest a loan on inven
tory (it can be alm ost any product
from coal to canned goods). Under the
Douglas-Guardian Plan, we issue field
warehouse receipts to you without mov
ing the merchandise from the borrower's
premises.
Result: You make the loan with collat
eral and without risk; your customer gets
the money he needs; your bank makes
a friend as well as a profit.
You M ake The Loans —We'll M ake Them Safe

DOUGL AS - GUAR DI AN
WAREHOUSE

CORPORATION

l‘The Bankers' Field W arehouse C o m p a n y"
NEW ORLEANS I, La., 118 North Front St.
NEW YORK 4, N .Y ., 50 Broad St.
C H IC A G O 2, III., 173 W. Madison St.
SAN FRA N CISCO 3, C a lif., 785 Market St.
PORTLAND 4, O re ., U .S . N at'l Bank Bldg.
LOS ANGELES 14, C a lif., G arfield Bldg.
SPRINGFIELD, M o., McDaniel Bldg.
and 18 other convenient n ation -w id e offices

Northwest ern Banker, March, 1955

Tv,.

M osler F lu sh T y p e " P ic tu r e W ind ow ” for Drive-in B a n k in g . Note how co v e r of d e p o sit unit o p e n s to 4 5

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Federal Reserve Bank of St. Louis

an g le, allow ing s a fe , e a s y a c c e s s to c u s t o m e r ’s h a n d .

A definite line of distinction, now, betw een

“ P IC T U R E W I N D O W S ” and all others!
You recall when it began— just four months ago on these very same pages— with the intro
duction of Mosler’s new “ Picture Windows” for Drive-in Banking. Until then you might have
bracketed all drive-in windows together in your thinking. But not any more— for p l e n t y of reasons!

it’s pretty o b v io u s what first caused bankers
all over America to set “Picture Windows” apart
in their thinking. Your eye can hardly miss it.
But the really decisive factor seems to have
been the ingenious mechanism behind this
inviting, new “open” look which Mosler and
Henry Dreyfuss created to harmonize with
modern bank architecture and bring teller and
customer closer together.

Teller’s hands are free at all times. Her vision
is free and unobstructed, too. Customer reaches
teller’s unit easily —even with large bag de
posits. There is no chance of fingers catching
or money blowing away. For unit is 100% safe
. . . 100% windproof. And any chance of em
barrassing errors in transactions is eliminated,
because deposit receptacle is glass-covered and
money is never out of customer’s sight.

Actually, it’s the only fully automatic mech
anism of its kind in a drive-in window, today.
One touch of a push button, and electricity
does the rest . . . sends the teller’s unit out . . .
opens its coyer to an easily accessible 45° angle
. . . then retracts it automatically after 15
seconds (or any interval you desire).

If your immediate or long range plans include
modern drive-in facilities, you’ll be interested
in all the other new features built into these
new Mosler units, too. Mail coupon for our
new “Picture Window” catalog. It’ll show you
why these units have won such widespread
acceptance, so quickly!

In sid e of new M osler “ P ictu re W indow ” is
d e sig n e d for sp lit-se co n d e fficie n cy. Note g la ss
lid of d e p o sit re ce p ta cle , w hich is c o u n te r
b a la n c e d for e ffo rtle ss op eration by te lle r.
M oney is n e v er out of c u s t o m e r ’s sig ht. S p e a k e r
s y s te m p e rm its e a s y c o n v e rs a tio n s . . . le a v e s
te lle r’s h a n d s fre e . Two big c a s h and sto rag e
d ra w e rs a re positioned for q u ick , e a s y a c c e s s .
New M osler B ay T y p e “ P ictu re W ind ow ” for Drive-in B a n k in g h a s s a m e “ o p e n ”
look . . . s a m e in g e n io u s m e c h a n is m a s flu sh typ e.

If it’s M o s l e r . . . i t 's s a f e

* Mosler Safe
W orld ’s largest builders of safes and bank vaults . . .
Mosler built the U. S. Gold Storage Vaults at Fort Knox and
the famous bank vaults that withstood the
Atom ic Bomb at Hiroshima

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The

M o s le r S a fe C o m p a n y , D e p t .

320

F ifth

A venue, N ew

Y ork

1, N . Y.

Please send me your new catalog which gives complete details and
specifications for the new Mosler “ Picture Windows” for Drive-in Banking.
N A M E _________________________________________________________________________ P O S I T I O N ___________________

B A N K ___________________ ___ _________________________________ _________________________________________________ _

A D D R E S S _______________________________________________________________________________________________________

C I T Y ________________________________________________________ Z O N E _________ S T A T E ________________________

Our Home Office is pleased to present
its
FINANCIAL STATEMENT
as of December 31, 1954
ASSETS
C a s h ................................................................... $ 425,841.86
U. S. Bonds (amortized value)...................... 3,056,968.77
Other Bonds (amortized value).................... 1,494,550.45
First M ortgages (none delinguent)...............
589,305.12
Due from Agents (current balances).............
347,708.00
Building and Loan Shares............................
25,000.00
Real Estate O w n ed..........................................
539,885.15
Due from Reinsurance Com panies...............
13,438.52
Accrued Interest on Investments..................
37,479.71
Cash Value of Life Insurance........................
39,040.28

6.5%
46.5%
22.7%
9.0%
5.3?"o
.4%
8.2%
.2%
.6%
.6%

$6,569,217.86

100.0%

LIABILITIES
Current Bills ....................................................$
8,589.79
Current Reinsurance Premiums...................
17,743.96
Taxes A ccrued ................................................
153,708.12
Unearned Premiums ...................................... 2,695,023.42
Reserve for Unpaid Losses..........................
628,603.95
Equity in Schedule "P "................................
131,648.00
Special Reserve ..............................................
18,244.12
Surplus ................................................................. 2,915,656.50
$6,569,217.86

Western Mutual Insurance Co.
616 Tenth Street

DES MOINES, IOW A

A Multiple Line, Non-Assessable Company in Our 48th Year
Digitized Northwestern
for FRASER Banker, March, 1955
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

INSURANCE
K e y s Io Sellini/

Confidence

Plus Acts of Faith

By ARTH U R D. BRUNK
Springfield A gency
Equitable Life Insurance Com pany o f Iowa
Champaign, Illinois

OU and I have read numerous articles telling of the
success of certain individuals. These Horatio Alger
type accounts have become a part of the great Amer
ican success story. They come in an endless chain and
fill our professional magazines with the bulk of their in
spirational material.
The stories are almost always read, for you and I as
the readers, have an opportunity to identify ourselves
with the author or hero and to enjoy his success. You
feel you could be just as successful—but then you wonder.
You stumble and begin to make excuses to convince your
self that your situation is different or special or—until
finally the story is forgotten.
What is the difference between a successful agent and
a mediocre one? You have all attended a number of
meetings with life underwriter friends and competitors.
As a rule you give your attention to the meeting programs
and relax in the most respectful manner. At the next
meeting you attend, look around and see if there is any
one taking notes—when you find the men who are, you’ll
find they are the largest producers.
Why do these large producers seem so eager, when suc
cessful men are content to sit. Many of the ideas are not
new, and they have heard them before. What then is the
difference? The main difference is attitude or the funda
mental habit of thinking. It is the difference between the
servant and the master.

Working Formula

You and I may have entirely different backgrounds, dif
ferent clients, and different training. But we all must
possess the intangible something that turns us into eager
and willing workmen, anticipating each task with the joy
of a child at a party.
You will, no doubt, have your ups and downs. But
they can be profitable if you will establish a solid working
formula. Your for
mula may differ in
. . . The author entered the life insurance business in 1947 and has
detail from my for
spent much of his time writing professional men and university pro
mula, but mine is
fessors in the Champaign, Illinois, area. As an aid to Iris estate and
based on t h r e e
retirement sales, he publishes a four-page monthly booklet entitled,
things.
Your Estate.
These are confi
dence in my company, confidence in myself and confidence
in my product. This is easy to say but may prove dif
ficult to mold into the working formula upon which you
can act. Therefore you need to have some “acts of good
faith” on your part to help keep your confidence strong
and workable.
Now let’s be specific. Do you believe in your company?
If you don’t your best bet is to get out.
My company has provided me with the best sales mate
rials available. My company has helped me with special
underwriting problems relating to pension plans. My
company helped educate me through in-training pro
grams, including the C.L.U. programs. My company has
a liberal retirement plan and a health and accident pro
“ To sell one must have
confidence in himself, his
gram. My company has the finest group of contracts
company, and his product.
available for me to sell. My company—yes, my company
I f he does not believe in
and
I could go on with a long list.
his company or the product
he sells, he is of little value
to his company or to him
self and would profit by
moving on.”

Confidence in Self

Just sit down and list them until you can say, “ My com
pany,” with a conviction that makes you proud to be a
part of the company. Remember, you may be the only
person from the company that many will know, and to
them you are “ My Insurance Company.”
The next step—confidence in myself—follows easily.
But it also needs some “acts of good faith” to keep it
KEYS TO SELLING . . .

ARTH U R

D. BRU N K

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

(Turn to page 58, please)
Northwestern Banker, March, 1955

Insurance

New Insurance Features
Some new features available to
banks in the installment lending field
were revealed recently by Henry Scar
borough of Scarborough & Company,
Chicago, bank insurance counselors,
who appeared at a workshop on in
stallment lending sponsored by the
Colorado Bankers Association l a s t
month.

One feature, the “lenders double in
terest,” he said, was a marine form
covering “transportation to the home
by the dealer, flood, windstorm and a
very broad comprehensive coverage.”
He added that the cost to the bor
rower is “insignificant,” and “many
banks by merchandising this feature
have increased their appliance volume
materially. Furthermore, it puts the
bank on a competitive basis insurance-

What Is Loss Prevention?
T he Iowa M utual T orn a d o Insurance A ssociation
is p rou d o f the part it plays in telling the Loss
Prevention story to the p eop le o f Iowa.
Loss P reven tion , is, o f course, the m any things
Iowa folks do to protect their prop erty from dam
age and total dem olition.

W e rem ind folks that

there’ s a lot o f truth in the old saying, ‘ “An ounce

Square Deal Progress

o f preven tion is w orth a p ou n d o f cu re.”
It’ s im possible to m easure the n u m ber o f lives or
the value o f Iow a farm prop erty that has been
saved b y a con tin uou s Loss P revention program .
But we believe it has heen substantial— and we re
going to keep it u p !

W o n 't you jo in us?

Iowa Mutual Tornado Insurance
Association
1883

Des Moines 8, Iowa

Scarborough’s Chattel Mortgage Non-Filing Insurance
gives you the same protection afforded by actual filing
or recording —plus a very material saving of time,
money, and worry.

wise with the finance companies.”
Another feature which he said was
again being offered after having been
withdrawn was dealer fraud insurance
against “invalid, forged notes or paper
involved in the transaction, or where
the borrower did not have title, as
well as conversion or theft on the part
of the dealer.”
Other features Mr. Scarborough de
scribed included:
“ Nonfile chattel mortgage policy.”
Developed by Scarborough & Com
pany, he said that with a bank “scru
tinizing the credit side of loans,” it
cannot only save filing fees and paper
and clerical work, but is also covered
country-wide against any loss whereas
“many chattels are not valid in states
other than where filed.”
A “lenders single interest” policy
for automobiles where the borrower
fails to deliver fire, theft and collision
insurance. It covers policy cancella
tion, loss or technical error in the pol
icy’s loss payable clause.
“Creditors’ group life insurance”
and “creditors’ group accident and
health insurance” with 30-day waiting
periods, which he called “great mer
chandising value” to the installment
lending department.

1955

C.
Fred Morgan of Des Moines was
re-elected president of the Square Deal
Insurance company recently at the
thirty-fifth annual meeting of com
pany officers and directors held in Des
Moines, Iowa.
Mr. Morgan has headed the crop hail
insurance firm since 1935. He has been
active in the hail insurance firm since
1899.
Other officers re-elected were Otto
Walther, Waverly, vice president;
Merle D. Morgan, secretary; Emmett E.
Johns, treasurer, and A. A. Kane, as
sistant secretary, all of Des Moines.
Merle D. Morgan and Donald Booth
of Thayer were re-elected to the board
of directors. Other directors are C.
Fred Morgan, Walther, Johns, John
Beller and P. H. Cless of Des Moines.
President Morgan reported to the
officers and board members that in
1954 Square Deal made one of its
largest single-year increases in assets
and surplus.
He listed company assets as $2,961,278 and surplus as $2,808,418.

Scarborough &
Company ,n“ c°

to Banks

FIR ST N A T I O N A L BANK B U I LD I N G • C H I C A G O 3, IL L I N O IS . STate 2- 43 2 5

Northwestern Banker, March, Í955

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Insurance

Western Mutual Meeting
Elected to the board of directors for
a three-year term at the annual policyholders’ meeting held recently in the
home office of Western Mutual Insur
ance Company, Des Moines, were:
Robert J. Kent and Charles S. Vance,
both of Des Moines, and Ronald
C. Booth, Cedar Rapids.
J. Dolliver Kent was re-elected pres
ident and other officers include: Al
bert H. Adams, vice president; Robert
J. Kent, vice president and secretary;
Mont S. Stokely, treasurer; J. Dolliver
Kent, Jr., assistant to the president;
Clyde W. Corbin, assistant secretary,
and John C. Stougard, assistant treas
urer.
Western Mutual’s financial state
ment December 31, 1954, showed total
assets of $6,569,217.86 and a surplus of
$2,915,656.50.

Reports 1 9 5 4 Gains
Substantial gains were recorded by
the Employers Mutual Casualty Com
pany of Des Moines in 1954, according
to a report released by John F. Hynes,
president. Admitted assets showed an
increase of 14 per cent, to a total of
$36,520,144. Claim reserves were in
creased a total of 14 per cent, to $13,982,684, while reserves for all other
liabilities were $12,395,812 for a gain
of 3 per cent.
Surplus to policyholders now totals
$10,141,648, an increase of 32 per cent
over the previous year. Net premium
writings by the company last year
were $24,938,119.
Employers Mutual is now licensed
in 32 states, including Alaska and the
District of Columbia.
The co m p a n y has announced a
building program which will double
the size of its present home office
quarters and construction will begin
about April 1.
The Employers Mutual is an agency
company w r i t i n g business only
through regularly licensed producers.

EMPLOYERS MUTUAL
CASUALTY COMPANY
Home Office

2 10 Seventh Street

Des Moines

Condensed Statement as of December 3 1 , 195 4
D IR E C T O R S
J. W . G U N N
C h a ir m a n o f t h e B o a r d
and T reasu rer,
D e s M o in e s , I o w a

ASSETS
United States Government, State,
Municipal
and
Miscellaneous
Bonds .................................................... ...$27,304,995,33
N o b o n d s o w n e d b y th e C o m p a n y h a v e
e v e r b e e n in d e fa u lt e ith e r as to in t e r
e st o r p r in c ip a l.

JO H N F. H Y N E S
P r e s id e n t,
D e s M o in e s , I o w a
M . J. W IL K IN S O N
V ic e -P r e s id e n t an d
S u p t. o f A g e n ts ,
D e s M o in e s , I o w a
W . J. H Y N E S
S ecreta ry,
D e s M o in e s , I o w a
F. E. B E L L A M Y
B o a r d C h a ir m a n ,
C o n c r e t e M a t e r ia l s &
C o n s t r u c t i o n C o .,
C e d a r R a p id s , I o w a

Cash in Banks.......................
Real Estate — Home Office and
Branch Office Buildings....................
Real Estate M ortgages...........................
Stocks ............................................................
Premiums Receivable— Not Past Due
C u rr e n t b a la n c e s
P o lic y h o ld e r s .

D R . L. E. K E L L E Y
P h y s ic ia n a n d S u r g e o n ,
D e s M o in e s , I o w a
FRANK
KOHRS
P r e s i d e n t , K o h r s C o ld
S t o r a g e C o .,
D a v en p ort, Iow a
CARL M UELHAUPT
P r e s . , C e n t r a l S e r v i c e C o .,
D e s M o in e s , I o w a
A M O S C. P E A R S A L L
P i t t s b u r g h - D e s M o in e s
S t e e l C o .,
D e s M o in e s , I o w a
W . Z. PR O C TO R
A tto rn e y at L a w ,
D e s M o in e s , I o w a
R . W . W E IT Z
P r e s id e n t,
T h e W e i t z C o m p a n y , I n c .,
D e s M o in e s , I o w a

fro m

A g en ts

492,322.98
757,429.10
1,806,780.00
2,819,437.13

and

Accrued Interest and Other A ssets..

246,269.90

Total Admitted A sse ts................. $36,520,144.26

W . H. BREN TON
P r e s ., B r e n t o n B r o s .,
D e s M o in e s , I o w a
H L. H JE R M STA D
P r e s ., C itiz e n s F u n d
M u t u a l F i r e I n s u r a n c e C o .,
R e d W i n g , M in n .

due

3,092,909.82

RESERVES
Reserve for Claims...................................$13,982,684.46
F u n d s s e t a s id e t o f u l l y
a n d e x p e c t e d lo s s e s .

p a y a ll in c u r r e d

Reserve for Unearned Premiums...... 10,447,138.81
F u n d s s e t a s id e t o r e t u r n t o e v e r y P o l
i c y h o l d e r t h e u n e a r n e d p r e m iu m i n e v e n t
o f c a n c e lla t io n .

Reserve for Taxes— State and
Federal .....................................................
A ll Other Reserves................................

812,090.59
1,136,582.47

I n c lu d e d i n t h is R e s e r v e is a s u f fic ie n t
a m o u n t to p a y d iv id e n d s o n a ll p a r t ic ip a t
in g p o lic ie s .

Total Reserves ................................$26,378,496.33
Reserve for Con
tingencies ..................$1,250,000.00
Guaranty Fund ...........
750,000.00
Unassigned Funds .... 8,141,647.93
Surplus as Regards Policyholders.... 10,141,647.93

DR. R. W . W OOD
P h y s ic ia n a n d S u r g e o n ,
N ew ton , Iow a

Total

.....................................................$36,520,144.26

Allied Mutual Report
Allied Mutual Casualty Company,
Des Moines, Iowa, increased its assets
$1,299,211.98 in 1954 over 1953 figures,
according to an announcement of Har
old Evans, president.
Total assets reached $10,811,000 as
of December 31, 1954, and reserves
climbed to $3,712,000.
Premium writings in 1954 were
$7,666,515. The consistent growth pat
tern enjoyed by Allied Mutual is
shown by comparing premium writ
ings in former years. Ten years ago
the company’s writings were $1,128,650 and 20 years ago writings were
$219,753.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

BRANCH OFFICES
Philadelphia, Pa.
Charlotte, N. C.
Lansing, Mich.
Milwaukee, Wis.
Chicago, 111.

Automobile, Plate Glass,
Workmen s Compensation,
Fire and Inland Marine

Jackson, Miss.
St. Louis, Mo.
Minneapolis, Minn.
Kansas City, Mo.
Omaha, Neb.
Wichita, Kans.

Dallas, Tex.
Denver, Colo.
Seattle, Wash.
Houston, Tex.
Vancouver, B. C.

General Liability Insurance,
Health & Accident, Burglary,
Fidelity and Surety Bonds

A NATIONAL INSTITUTION
Northwest ern Banker, March, 1955

Insurance

K e y s to S v llh iy. . .

C L A I M S LIKE TH IS
EXPLAIN W HY
BANKERS AND THEIR
B ORROW ER S
A P P R E C IA T E THE P R O TECTIO N
O FFER ED BY

faith” here also. The most obvious are
the living beneficiaries in our commu
nities, and we need to list them. Start
such a list some time, it will do you
good.
Horace R. Smith, C.L.U., spoke to
our l o c a l underwriters association
when he was a director of the Life
Insurance Marketing Institute at Pur
due University and at the conclusion
of the talk, left us with this thought:
“ I think you can readily agree with
me that life insurance is indeed a very
social institution. You remember that
during the depression it was frequent
ly said that federal aid saved our de
mocracy? The combined sum of all
federal aid from 1932 to 1941, includ
ing the benefits of all kinds of relief
and other emergency funds, totaled 23
billion dollars. Yet the life insurance
companies in the same period of time
disbursed to beneficiaries and living
policyholders, 26.5 billion dollars. So
I would be inclined to feel that Amer
ica saved itself for democracy and that
the life insurance companies and the
policyholders made it possible for the
country to be saved.”

C O L O R A D O C R E D IT LIFE

Needed Base

(Continued from page 55)
strong. The first is study on a regu
lar, planned program. Become so sat
urated with your subject that you can
not help but radiate confidence.
Know your approaches and sales
presentations so that you can release
all of your conscious effort to watching
the client and his reactions. This was
one of the most difficult steps for me
to make a working part of my day.
You and I hate to be a victim of
an obviously memorized sales talk, and
therefore, we stumble around for ideas
and words until we are lost—and so is

the client. Don’t forget the purpose
of the memorized sales talk. It is to
release your conscious effort so that
you can study your client’s reactions—
now it is much easier. Try it.
All other details such as records, use
of direct mail, sales material, etc., are
tools. We can use these as “acts of
faith” to keep our confidence in our
selves strong.
The last one—confidence in product
— seems too obvious, but we have
heard so many critics of our product
that we need to practice “acts of good

HERE'S
THE STORY!

NEW LOND ON. MISSOURI . . .
When Mr.......... of New London, Missouri, bor
rowed $5,000 on a six-month term from the
Ralls County State Bank, he had his debt in
sured with a Colorado Credit Life level term
policy. In December, 1954, Mr.......... w as in
volved in an automobile accident caused by
icy roads, and he died as a result of the
accident. At the time of his death, he had
repaid $3,000 of his loan, but there w as still
$2,000 outstanding. Colorado Credit Life paid
off the existing indebtedness of $2,000 and
paid $3,000 into Mr..........'s estate.

ABOVE: The President of the Ralls County
State Bank is shown receiving the check can
celing the assured's indebtedness, from Nor
bert Schindler (left), Colorado Credit Life
Resident Vice President for Illinois, and Paul
Stroud (right), Resident Vice President for
Missouri.

Federal Reserve Election

PAID WITHIN 5 W O R K IN G DAYS
Only 5 working days after this claim was re
ceived by the Colorado Credit Life home office,
the President of the Ralls County State Bank
received a check for $2,000, and a check for
$3,000 was presented to the executor of the
estate. _ The checks were sent AIR MAIL SPECIAL
DELIVERY to assure immediate payment by the
Resident Vice President. Colorado Credit Life
pays when your borrowers can't . . . PAYS
IMMEDIATELY!

CREDIT LIFE INSURANCE

COLORADO CREDIT LIFE

DEBT CANCELLATION

COLORADO
INSURANCE COMPANY

FIRE INSURANCE
AUTOMOBILE INSURANCE

COLORADO CREDIT
LIFE UNDERWRITERS
We invite your questions and requ ests f o r information.
Wire or call co l l ec t t o the C olo rad o Insurance Group
Home Office In Boulder, Colorado.

Northwestern Banker, March, 1955

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Confidence is the base we need to
build with “acts of good career faith,”
and from it will come a life of service
and a career in life underwriting. Con
fidence in my company, confidence in
myself and confidence in my product.
With these as a base the details will
fall into their place and we will do
first things first. We will be able to
take the discomforts, insults and dis
appointments because we have a
strong conviction we are part of the
greatest institution in the world.—
End.

Edward E. Brown, chairman of The
First National Bank of Chicago, was
reelected president of the Federal Ad
visory Council of the Federal Reserve
System for 1955 at a meeting held last
month in Washington.
Robert V. Fleming was elected vice
president. Mr. Fleming is president
and chairman of the board of The
Riggs National Bank of Washington,
D. C.
Directors elected were: William D.
Ireland, president, the Second National
Bank of Boston; Henry C. Alexander,
president, J. P. Morgan & Co., Incorpo
rated, New York City, and Frank R.
Denton, vice chairman of the board,
Mellon National Bank and Trust Com
pany, Pittsburgh. The above five con
stitute the executive committee of the
council.
Herbert V. Prochnow, vice president
of The First National Bank of Chicago,
was reelected secretary.

Insurance

T ru st
E s ta te

O fficers in vited to
Tlannint/ In stitu te

T RUST officers, attorneys, account
ants and life insurance underwrit
ers from all over the country will have
National Estate Planning Institute,
which is scheduled to be held in Des
Moines on April 18 and 19. Headquar
ters will be Hotel Fort Des Moines.
The main purpose of the institute
will be to provide greater understand
ing for the four professions of the
proper handling and solution of the
average business man’s estate. Bank
ers interested in trust work are in
vited by the sponsors of the institute
to attend and are particularly encour
aged to bring any attorneys, account
ants or life underwriters from their
communities who have an interest in
estate planning.
The program will be unique since it
will feature four men recognized as
top authorities in their respective
fields. They are: Joseph Trachtman
of Trachtman and Wolf, a New York
law firm; Robert J. Lawthers, director
of benefits and pension business of
the New England Mutual Life Insur

ance Company, Boston; Laflin C. “Bob”
Jones, executive assistant of the North
western Mutual Life Insurance Com
pany, Milwaukee, and Kenneth I.
Todd, trust officer of the Valley Na
tional Bank, Phoenix, Arizona.
Mr. Trachtman is one of the leading
estate planning counsels in New York,
having been selected by the American
Bar Association to author its book on
“Estate Planning.”
Mr. Lawthers has been a student of
tax law for 30 years and is one of the
leading lecturers in the nation on es
tate planning.
Mr. Jones has authored several ar
ticles for life insurance journals, look
ing at estate planning from the life
underwriter’s viewpoint.
The institute will be presented in a
dramatic fashion to outline clearly the
entire background of a typical client’s
case. This elaborately planned pres
entation will weave in the roles played
by the four professions concerned
with serving the client’s estate plan
ning needs. Following this, all regis

trants will be given an opportunity to
ask questions or express themselves
on any phase of the plan presented.
To facilitate this, table arrangements
will be such that mixed groups repre
senting the four professions will be
seated together for mutual discussion
purposes.
The two-day institute will be strict
ly a workshop affair. Due to hotel
limitations, registration will be lim
ited to the first 425 persons sending in
reservations.
The $25 registration fee per person
should be sent to the National Es
tate Planning Council, 212 Equitable
Building, Des Moines 9, Iowa.
Cooperating sponsors of the clinic
include: American Society of Char
tered Life Underwriters, Des Moines
Chapter; Des Moines Estate Planning
Council; Des Moines Association of
Life Underwriters; General Agents
and Managers Association: Iowa Ac
countants Association; Iowa Corporate
Fiduciaries Association; Iowa Quarter
Million Club; Polk County Bar Asso
ciation; Colleges of Liberal Arts, Fine
Arts, Business Administration and the
law school at Drake University, Des
Moines.—End.

62nd ANNUAL FINANCIAL STATEMENT
As o f D ecem ber 31, 1954
ASSETS

LI ABI LI TI ES

Bonds— Amortized Value ........................ $ 5,810,524.86
Stocks— Convention Market
...............
287,675.00
Mortgage Loans on Real E state.............
404,031.06
Real Estate— Including Hom e Office
Building ..........................................................
662,991.55
1,092,558.90
Cash and Bank Deposits.............................
Agents’ Balances— Not Past D u e...........
113,194.88
Interest Due and Accrued...........................
37,077.47
All other ............................................................
413,570.70

Reserves:
Claims and Claims E xpense..................$ 1,394,933.96
Contingent Commissions ......................
374,053.91
Taxes— Federal, Stateand O t h e r . . . .
243,063.74
Unearned Premiums
..........................
2,250,044.71
All Others ...................................................
130,980.30

Total Admitted A sse ts.........................$ 8,821,624.42

Total Liabilities ......................................$ 4,393,076.62
S U R P L US
Surplus A s Regards Policyholders.........$ 4,428,547.80
Total

............................................................ $ 8,821,624.42

FARMERS MUTUAL HAIL INSURANCE COMPANY OF IOWA

MAX D. RUTLEDGE,

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

President

1019 High Street, Des Moines
......... y
Northwest ern Banker, March, 1955

Insurance

George A. Malcolm
George Avery Malcolm, 65, president,
The Drovers Banks in Chicago, died
of a heart attack in Passavant Memo
rial Hospital, Chicago, last month. Mr.
Malcolm’s passing ended a career of
45 years of banking in Chicago, during
which time he had become widely
known and respected in financial cir
cles. His warm personality and un
derstanding had made him an easy ex
ecutive to approach and talk to—and
this trait contributed to his popularity
with the employees of the bank.
Mr. Malcolm was born in Chicago
July 22, 1889, and was educated in Chi
cago Public Schools. He attended law
school before deciding on a banking
career. In 1910 he started working for

the old Fort Dearborn National Bank,
and on August 1, 1915, he started at
the Drovers National Bank as chief
clerk. Over the years he held many

the Illinois Bankers Association, and a
member of the commerce and marine
commission of the American Bankers
Association. He was a member of the
South Shore country club, the Union
League club and the Chicago Athletic
Club.
Survivors include his widow, Mabel
C. Malcolm of 7321 South Shore Drive,
Chicago, and a daughter, Mrs. Marjorie
Brookes of 9925 South Bell, Chicago.

Chicago AMF Service

GEORGE

A. M A L C O L M

positions, working up to assistant
cashier, cashier and vice president. In
1945 he was named president of both
the Drovers National Bank and the
Drovers Trust & Savings Bank.
He was treasurer of Group One of

Seven major Chicago banks have an
nounced the start of an Air Mail Field
service under which they will receive,
directly at the Chicago airport, special
airmail envelopes containing checks
and collection items coming to them
by air mail from correspondent banks
all over the United States.
The seven banks are the First Na
tional Bank of Chicago, Harris Trust
and Savings Bank, LaSalle National
Bank, Chicago National Bank, Ameri
can National Bank & Trust Co., City
National Bank & Trust Co., and The
Northern Trust Company.
The service is expected to save cor
respondent bank customers of the
banks as much as 3-4 hours in the
clearance of checks and drafts by
eliminating the passage of such letters
through the downtown Chicago post
office.

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INLAND MARINE
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Northwestern Banker, March, 1955

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Federal Reserve Bank of St. Louis

PAUL

SAINT P A U L M ERCURY IN D EM NITY COM PANY

A G EN T ...

111 West Fifth Street, Saint Paul 2, Minnesota

TODAY

INSURANCE COUNSELLORS TO BANKS

Insurance

Mutual Fire Progress
Mutual Fire and Automobile Insur
ance Company of Cedar Rapids, Iowa,
held its 55th annual meeting recently
and entertained a large group of
agents and policyholders.
J. M. Winchell, secretary, reported
an increase of 12 per cent in written
premiums, 10 per cent increase in ad
mitted assets and 5% per cent increase
in surplus. Earned premiums were
up 11% per cent while unearned in
creased 7 per cent. The company
closed the year with $1,016,029 in ad
mitted assets.
J. E. Wilson, H. C. Doane and A. C.
Taylor were re-elected to the board of
directors, each for a term of three
years. All officers of the company
were re-elected and a new office, that
of assistant secretary, was filled by
the election of Paul A. Anderson, who
will continue as supervisor of the
claim department.
At the annual banquet certificates
of award for 20 years continuous serv
ice as local agents in Iowa were pre
sented to D. M. Crumley of Rippey,
W. C. Dostal of Protivin, C. A. Harding
of Baldwin, Jesse O. Kober of LaPorte
City, S. T. Lawler of Casey, Fred J.
Pylman of Sheldon and C. H. Warnock
of Iowa Falls. W. C. Zeman of Cedar
Rapids was again honored as the top
individual producer for 1954.
The company is now licensed in five
states, namely, Iowa, Nebraska, South
Dakota, Colorado and Minnesota.

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Federal Reserve Bank of St. Louis

F o reig n

Students Tom ' Hun

EXC H AN G E STUDENTS BRIEFED — Anton W . Koester, manager of the trust book
keeping department of Bankers Trust Company, New York, briefs the 33 foreign ex
change students, who recently toured the bank, on the operation of tabulating machines.
The young people, representing 14 foreign countries, are sponsored by the American
Field Service and spent the day visiting W all Street.

MOTORISTS AND DEPOSITORS:
1. Cuts Banking Time from 15 to
Two Minutes.

to loss unnecessarily by walking the
streets to reach the bank carrying
large sums of money on their persons.
Less chance of theft, holdup, or loss.
3.
Parents Need Not Leave Children

The motorist depositor will bank in
one-seventh the time he now normal
ly takes to find a parking space, park,
walk to and from the bank, and stand
in a rush-hour line.
2. Safety for Depositors.
Depositors do not expose themselves

Children are within easy sight of
parents who bank at the walk-up win
dow, relieving parent of trouble of es
corting on sidewalk or leaving unat
tended.—End.

WALK-UP WINDOWS . . .
(Continued from page 24)

or Escort Them on Crowded Side
walks.

Bankers . . .
For the most comprehensive, up-to-theminute insurance programs available,
you'll want to investigate our services.
Credit Insurance, Group Creditor,
Life, Hospitalization, Mortgage
Plans, and Disability Plans.
We specialize in serving financial insti
tutions.

CENTRAL STATES HEALTH AND ACCIDENT ASSOCIATION
W O W BUILDING/ OMAHA 2, NEBRASKA, T. LESLIE KIZER, PRES.

Northwest ern Banker, March, 1955

Insurance

Plan F.P.K .A. Regionals
Three regional public relations con
ferences will be sponsored by the Fi
nancial Public Relations Association
this year. The association’s executive
committee approved plans for one-day
meetings in Atlanta, Georgia, May 4;
Cincinnati, Ohio, May 6, and Boston,
Massachusetts, May 11.
The regional meetings are working
meetings. Sessions continue for a full
day and evening during these concen
trated, boiled-down one-day conven
tions.
C. Arthur Hemminger, advertising
manager of the First National Bank,

St. Louis, will be the general program
chairman for the annual convention
of the F.P.R.A., to be held in the Hollywood Beach Hotel, Hollywood, Flor
ida, November 14-18.

the management of the bank’s opera
tions in the foreign field. Mr. Shannon,
who has been a general inspector, will
have jurisdiction over non-domestic
business.

Royal Bank Changes

New Appointment

The Royal Bank of Canada an
nounced recently that A. F. Mayne
has been appointed associate general
manager, a new position, and that R.
W. Shannon has been appointed assist
ant general manager.
As associate general manager Mr.
Mayne, heretofore an assistant gen
eral manager, will be responsible for

The appointment of Gerald G. Morse
as assistant vice president of the
American National Bank and Trust
Company of Chicago was announced
recently by Robert E. Straus, presi
dent, following a meeting of the bank’s
board of directors.

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Harold S. Evans
FOURTH AND PARK ST REETS

Northwestern Banker, March, 1955

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

President
DES MOINES, IO W A

G. M O R S E

J o in s c o r r e s p o n d e n t b a n k d iv is io n o f
A m e r ic a n N a t io n a l B a n k & T r u s t C o m p a n y ,
C h ic a g o

Mr. Morse, who will serve as a mem
ber of American National’s correspond
ent bank division, was previously as
sociated with the Federal Reserve
Bank of Chicago for over 11 years.
During the past five years, he was the
Illinois representative for the bank
relations department of the Federal
Reserve.
A graduate of Princeton University
and the School of Banking at the Uni
versity of Wisconsin, Mr. Morse also
attended the Agricultural C r e d i t
School of Iowa State College, Ames.

Manufacturers Promotions
Four appointments were recently
announced by Horace C. Flanigan,
president of the Manufacturers Trust
Company, New York.
Thomas Heslin, Charles F. French,
Jr., and Edward J. Colbert were named
vice presidents. Earl A. Drew was
named deputy auditor.
It was also announced that Eugene
S. Northrop, a vice president of the
bank, was elected a director of the New
York Dock Company recently. Mr.
Northrop is in the bank’s trust depart
ment.

Insurance

New Location
The installment loan department of
the First National Bank in St. Louis
was opened for business recently in
its new permanent quarters at 312-14
North Sixth Street. Also in the new
location is the First National’s F.H.A.
and G.I. home loan department.
The building in which the two loan
departments will now be located is a
completely rebuilt five-story structure,
between the Carleton and Oriel build
ings. It is built to connect with the
bank’s new six-story addition on Lo
cust Street.
The entire rebuilding program, be
gun in 1951, is scheduled for comple
tion next year, according to William
A. McDonnell, president of the First
National.

for his gigantic works of sculpture at
the Northland Shopping Center in De
troit, Michigan, many of which were
pictured in Life magazine.
Affiliated with the Bruce B. Brewer
advertising agency of Kansas City the

Honor “ Mr. N” Creator
Arthur M. Kraft, creator of “Mr. N” ,
Spencer Chemical Company’s trade
symbol for ammonium nitrate, has
been named one of the Ten Outstand
ing Young Men of the Nation.
Mr. Kraft is the first painter and
sculptor ever to be selected for this
honor. Ten men are chosen annually
for the award from a nationwide list
compiled by the Junior Chamber of
Commerce. A versatile young artist,
Mr. Kraft recently gained recognition

ART

KRAFT

C rea tor o f “ M r. N ” fo r S p en cer
C h e m ic a l C o m p a n y , K a n sa s C ity

past eight years, Mr. Kraft also is the
creator of a series of cartoons for Spen
cer Chemical Company featuring a per
sonalized tank car named “ Tanky” .

This fast-moving fellow appears in a
number of industrial trade papers. His
“ Mr. N” creation appears in ads and
on Spencer ammonium nitrate bags.

Midwest Business Gains
Business is picking up more rapidly
in the midwest than in the nation,
the Federal Reserve Bank of Chicago
reports, as the economic recovery
which got under way last fall con
tinues to gather momentum.
Industrial production gains, behind
much of the recent pickup, have been
sharpest in the midwest, largely due
to the spectacular upsurge in auto out
put. In its monthly review, Business
Conditions, the bank says that this
development has affected not only
Michigan centers, but many other mid
west areas where important plants
and suppliers are located.
Moreover, other types of industrial
production important in this region
have also shown strength in recent
months. Output of major household
appliances and radio-TV has been run
ning well ahead of a year ago. Elec
trical machinery and equipment, while
still below previous year figures,
chalked up significant increases late in
1954. Midwest farm machinery pro
ducers, too, are stepping up produc
tion in anticipation of a seasonal sales
rise.

Increased Income
fo r y o u r b a n k through

Home Improvement Loans
$340,0 00 ,00 0

$ 1,108,000,000

$900,000,000

S o u r c e o f fig u r e s : B u ll e t in N o . 1 1 4 6 , U . S . D e p t ,
o f L a b o r , B u r e a u o f L a b o r S t a t i s t i c s , s h o w in g
m a j o r a d d it i o n s a n d a lt e r a t io n s in p r iv a t e c o n
s t r u c t i o n , r e s id e n t ia l b u i l d in g ( n o n - f a r m ) .

P ro tecte d Loans
In c r e a se d In c o m e
The A B A Instalment Credit Commission has urged banks
to set up their own modernization loan programs.
B y setting their own conditions and terms, and adjust
ing rates to the size and type of loan, banks enjoy greater
profits. T hey also enjoy freedom from restraining regula
tions, and can dispense with government forms and the
need for following changing rules and interpretations.

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Federal Reserve Bank of St. Louis

Under this plan a bank is free to set up its own insurance
protection for the home owner, about whom much has
been said but little done. Old Republic’s representatives
know the consumer credit field. They deal with it every
day. T h ey know the application of credit life insurance
to the consumer credit field, and they have available for
the banker the specially tailored rate charts, advertising
materials and other tools which make for a quicker, easier
selling job. Old Republic operates in all states.
Ja m e s H. Jarrell, President

CREDIT

LIFE

INSURANCE

COMPANY

H OM E O F F IC E : 3 0 7 N. M IC H IG A N A V E N U E , C H I C A G O 1, ILLINOIS
Northwest ern Banker. March, J95S

For m ore than half a century

been Hanover Correspondents
A Bank Is Known By The Correspondents It Keeps

h e

ern Banker, March, 1955
DigitizedNorthwest
for FRASER
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Federal Reserve Bank of St. Louis

a n o v e r

a n k

Outstanding Young Man

M in n esota

NEWS
W. G, KING
President
Grand Rapids

Minnesota Record
Minnesota’s 502 state banks and
trust companies started 1955 with a
record high of $1,378,798,055 in total
assets, Charles M. Wenzel, retiring
state commissioner of banks, disclosed
in his report on conditions of banks
as of December 31, 1954.
This was an increase of $60,970,047
over December 31, 1953.
Loans and discounts increased $31,013,032, to a total of $545,515,840.
Total deposits increased $54,469,986,
to $1,272,408,735.

New Director
William Jeseritz was elected to the
State Bank of Wood Lake’s board of
directors at the annual meeting of
stockholders in Wood Lake, Minne
sota. It was also voted to increase
the surplus account by $5,000, bringing
it up to $50,000.

Winona Adds Officer
At the annual meeting of the W i
nona National and Savings Bank, Wi
nona, Minnesota, Elgin O. Sonneman
was named assistant cashier. A resi
dent of that city since 1919, he is a
graduate of the American Institute of
Banking.

FLOYD W. LARSON
Secretary
Minneapolis

Minnesota, died recently after suffer
ing a heart attack. He was a former
president of the St. Cloud Clearing
House Association and of the Central
Minnesota Bankers Association.

President Resigns
At the annual meeting of the Winthrop State Bank, Winthrop, Minne
sota, H. C. Stresemann, a director of
the bank for 30 years and president
the past 18 years, resigned his official
duties. During his tenure as presi
dent, deposits in the bank have in
creased from $264,117 in 1936 to near
ly $1,671,000.
A.
L. Olson, former vice president
of the bank, was named president and
E. H. Lind, vice president.

Elected to Office

Named Cashier
Gordon M. Elden, former assistant
vice president of the National Citizens
Bank in Mankato, Minnesota, has been
named cashier of the First National
Bank in Dunnell. He succeeds George
Heyman, who has resigned to enter
the real estate business. Betty June
Lyon has been named an assistant
cashier.

New Director
The State Bank of New Prague, Min
nesota, has a new director. He is
Attorney John M. Fitzgerald, who was
elected at the annual meeting of stock
holders of that bank.

To Assistant Cashier
Only one change was made in the
staff of the Union National Bank of
Rochester, Minnesota, at its annual
meeting. Richard Pike was elected an
assistant cashier of the bank. Other
officers and directors were re-elected.

N.
E. Olson, president of the First
National Bank of Osakis, Minnesota,
has announced the election of James Special Meeting
At a special meeting of stockhold
K. Nomeland as an assistant cashier.
Mr. Nomeland is a graduate of Luther ers last month of the First National
Bank in Crookston, Minnesota, Roger
College, Decorah, Iowa.
Briden, local farmer and businessman,
was named to the board of directors.

Report Offered

President George A. Beito of the
Northern State Bank, Thief River
Falls, Minnesota, has reported an in
crease in deposits during the year of
$285,591 and in resources of $313,551.
Heads New Bank
At the same time he announced the
A.
L. Neuman, vice president and recent election of Orville M. Hanson as
cashier of the Citizens Bank, Morris, an assistant cashier.
Minnesota, has been named president
of the new Tri-County State Bank in Staff Changes
Ortonville, which opened for business
Two changes in the staff of the Se
last month.
curity State Bank of Hibbing, Minne
Having served with the Morris bank sota, were announced following the
for more than 25 years, Mr. Neuman annual meeting. A. A. Koskinen was
will serve on the board of directors, elected president and E. G. Hoskins,
along with Carl Hasslen, Floyd Lun- cashier. Plans are also under way to
dell, Dr. Alford Hanson, Carl B. Hass remodel the bank building.
len and Harvey G. Ellerd.
The bank received its charter last
Promotions Received
May and its new quarters were com
At the annual meeting of stockhold
pleted last month. It opened for busi
ers
of the Ogilvie State Bank, Ogilvie,
ness with a capital of $50,000, surplus
of $15,000 and undivided profits of Minnesota, A. Dan Fiala, cashier of
the bank since 1948, was named vice
$15,000.
president. At the same time Gerald
Oosterhuis, assistant cashier, was pro
John Buettner
moted to cashier, replacing Mr. Fiala.
John Buettner, executive vice presi Majal Cirpinski was named an assist
dent of the State Bank of St. Cloud, ant cashier.

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Federal Reserve Bank of St. Louis

Ralph Schmidt, vice president of the
Farmers and Merchants State Bank,
Appleton, Minnesota, was recently
named the “ Outstanding Young Man
of 1954” by the Junior Chamber of
Commerce of that city.

Doubles Capital Stock
Capital stock of the First National
Bank of Brewster, Minnesota, was
doubled through a 100 per cent stock
dividend, according to A. J. Kane,
bank president. The capital now
stands at $50,000, giving the bank a
larger loan limit.

Elected President
The board of directors of the Farm
ers State Bank of Lakefield, Minne
sota, has named Sam Boies, formerly
the vice president, to succeed Feodor
Ulbrict as president of the bank. Mr.
Ulbrict, who served a year as presi
dent, was elected vice president, and
Robert P. Thiesen was named an as
sistant cashier.

Surplus Increased
The stockholders of the First Na
tional Bank of Waconia, Minnesota,
voted at their annual meeting to in
crease the surplus of the bank by
$50,000, bringing the total capital and
surplus to $180,000.
Northwestern Banker, March, 1955

M innesota N e w s

G overn or Sii/ns H ills inltt huir

Anoka Expansion
The State Bank of Anoka, Minne
sota, has launched an expansion pro
gram. It has purchased a section of
the Colburn-Hilliards, including all
three floors. Gerald Bryan, cashier,
says the building will be completely
remodeled, including installation of
two new vaults and rewiring. The
cost will be in excess of $60,000.

Two Directors Retire
Two directors have retired from the
Citizens State Bank’s board in Roseau,
Minnesota. They are Dr. J. L. Delmore and Carl Listug, each retiring
with 32 years’ service on the board.

Promotions Announced
DOUBLE LIABILITY on the 502 state bank and trust company stockholders in Minne
sota was removed last week when Governor Orville Freeman signed the Amendment 2
bill passed by the state legislature. Also signed into law during the meeting was a stop
payment bill proposed by the Minnesota Bankers Association.
Here (left to right) Floyd W. Larson, executive secretary of the M.B.A.; K. O. Sattre,
Blue Earth banker and chairman of the Citizens Committee for Amendment 2; Senator
Dan Fiedt, Minneapolis, Senate author of the bills; A. F. Oberg, Lindstrom banker and
House author of the bills, and Karl Rolvaag, lieutenant governor, look over the bills as
they are signed by the governor.
Minnesota was the 47th state to remove the double liability provision from its statutes.

Director Named
Frank R. Klassy has been added to
the board of directors of the First
State Bank of Le Roy, Minnesota, fol
lowing the annual meeting of that
bank. He replaces the late Matt J.
Klassy. Surplus of the bank was in
creased from $50,000 to $75,000 at the
meeting.

Expansion Planned
The First National Bank in St.
James, Minnesota, has announced
plans to expand its quarters. The
bank lobby will be enlarged and offi
cers’ quarters will move into the Pet
erson Jewelry Store adjoining the
bank.

Services Obtained
The State Bank of Barnum, Minne
sota, has announced that it has en
gaged D. W. Lind, Alexandria, to serve
as cashier of that bank. He replaces
A. M. Rundgren.

Oklee Promotion
Directors of the Security State Bank
of Oklee, Minnesota, have announced
the promotion of Artha K. Nyquist to
assistant cashier and Sherry Hince to

teller. President George A. Beito also
announced the addition of a new Recordak machine and two other electric
machines for endorsing and cancelling
checks automatically.

Duluth Post
Directors of the Western National
Bank of Duluth, Minnesota, have
name Elizabeth L. Cheslake as an as
sistant cashier. Other officers and di
rectors were re-elected for another
term.

Position Created
At the annual meeting of the board
of directors of the State Bank of Tow
er, Minnesota, John Dragavon, cashier,
was named to the newly created post
of executive vice president of the
bank. Lillie J. Hill, assistant cashier,
succeeds Mr. Dragavon as cashier.

Open House in Austin
The Austin State Bank, Austin, Min
nesota, held open house last month,
signalling completion of its enlarged
and modernized quarters. Simultane
ously it celebrated its 25th anniver
sary. Remodeling expenses were in
excess of $270,000.

Several promotions were announced
following the meeting of directors of
the Kanabec State Bank and the Kana
bec Credit Company in Mora, Minne
sota, recently. Frank ,J. Grahn, for
mer cashier, was named vice presi
dent; Robert L. Nikodym, assistant
cashier, was promoted to cashier, and
J. Russell Klosner was named assist
ant cashier of the bank. Walter R.
Johnson, manager of the Kanabec
County Insurance Agency, was elected
vice president of the credit company.
It was also announced by President
Frank Powers that remodeling and re
decorating of the bank would soon be
completed.

$1 Million Addition
Stockholders of the First and Ameri
can National Bank, Duluth, Minnesota,
voted at their annual meeting to in
crease the surplus account by $1 mil
lion. This brings the surplus account
to $4 million, according to Willis D.
Wyard, president of the bank.

Trust Position
Directors of the Northern Minnesota
National Bank, Duluth, have an
nounced the appointment of John M.
Harris as assistant secretary in the
bank’s trust department. Before en
tering the trust investment field in
1952, he was engaged in marketing re-

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Northwestern Banker, March, J955

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Federal Reserve Bank of St. Louis

401 Second Ave. S.
Minneapolis 1, Minnesota
M e m b e r F e d e ra l D e p o s it I n s u r a n c e
C o r p o r a tio n

M inn e so ta N e w s

search and accounting work for eight
years.

Recent Open House
Last month the Blue Earth State
Bank, Blue Earth, Minnesota, held an
open house in commemoration of its
50th year of incorporation, displaying
its recently remodeled quarters. Dur
ing its 52-year history the bank has
had but four presidents, most recent
of whom has been K. O. Sattre, being
named to that post in 1950.
More than 4,200 persons attended
the open house, with potted plants and
key chains being presented to 2,800
persons. More than 250 depositors re
ceived pen and pencil sets for opening
new savings accounts or adding to
their present accounts.

TODAY
More Than Ever

Your Income Is a
Vital Necessity

Stock Increase
Capital stock of the First National
Bank of Winona, Minnesota, was in
creased at the annual meeting of
stockholders by a stock dividend of
$100,000. The increase, according to C.
A. Fockens, vice president and cashier,
was from $250,000 to $350,000.

W e specialize in writing insurance

Educational Award
H.
R. Kurth, president of the Citi
zens Bank, of Hutchison, Minnesota,
has been awarded the Distinguished
Service Award for 1955 by the Minne
sota Education Association for his
service as president of the Hutchison
school board.
The award was presented in a sur
prise ceremony during a banquet of
the Minnesota School Board Associa
tion recently, by Florence Dunn, presi
dent of the education association. Mr.
Kurth has served previously as presi
dent of the school board association
and of the Minnesota Bankers Asso
ciation, in addition to spending seven
years on the city council and in nu
merous other community activities.

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Low Rates for Bankers

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Fifty Years of Successful Service

MINNESOTA COMMERCIAL MEN'S ASSOCIATION
PAUL CLEMENT, Secy, and Geni. Mgr.
Minneapolis 4, Minnesota

V ice President Named

2550 Pillsbury Avenue

William C. Talen, vice president and
director of the First National Bank,
Menomonie, Wisconsin, has been pro
moted to executive vice president of
that institution. Before moving to
Menomonie he served as executive
vice president of the Farmers State
Bank in Eyota, Minnesota.

2550 Pillsbury Avenue
Minneapolis 4, Minnesota

Minnesota Commerciai Men's Association

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Springfield Advances
The Farmers and Merchants State
Bank of Springfield, Minnesota, has
announced the election of Gordon Pieschel, assistant cashier, to the bank’s
board of directors. Deposits in 1954
increased more than $300,000, to put
them over the $4 million mark.

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Federal Reserve Bank of St. Louis

1955

complete information on your Income

Protection Plan.
NAME

......................................................................................................................

ADDRESS ................................................................................................................
City

State

Northwest ern Banker, March, 1955

dent, Marquette National Bank,
R
was recently elected president of the

of the Minnesota Plastics Corporation,
to the bank’s board of directors.
* * *

Minneapolis Clearing House Associa
tion.
Amulf Ueland, president, Midland
National Bank, was elected vice presi
dent. Joseph T). Husbands, vice presi
dent and cashier, Northwestern Na
tional Bank, was re-elected secretarytreasurer.
* =*= *

William E. Boker, St. Paul, a part
ner in V. A. Boker & Sons of Minne
apolis, has been elected to the board
of directors of the University National
Bank of Minneapolis, according to
Russell L. Stotesbery, president.
* * *

ussell l . stotesbery,

presi

Carl W . Erlandson has been ap

pointed supervisor of training for the
American National Bank of St. Paul.
Mr. Erlandson has been executive sec
retary of the St. Paul east district
Y.M.C.A. for 25 years.
* * *
Leslie N. Perrin, chairman of the
board of the Federal Reserve Bank of
Minneapolis, has been re-elected to a
second term as president of the Com
munity Chest and Council of Henne
pin county (Minneapolis).
Clarence R. Chaney, a former Min
neapolis banker, was re-elected a vice
president. Arthur Regan, vice presi
dent and secretary, First National
Bank of Minneapolis, is treasurer.
Elected to the board of directors
were Arnulf Ueland, president, Mid
land National Bank of Minneapolis,
and Gordon Murray, president of the
First National Bank of Minneapolis.
* * *
Promotion of Barton H. Warren to
assistant manager of the North Side
office of the First National Bank of
Minneapolis and election of Charles E.
Cochran to its advisory committee
were announced recently by Gordon
Murray, president.
*
*
president, First
State Bank of St. Paul, announced re
cently that the bank has increased its
surplus $100,000 from its undivided
profits, bringing the surplus to $400,0 00 .
Mr. Delander also announced elec
tion of Herbert R. Galloway, president
N.

Delander,

DigitizedNorthwestern
for FRASER Banker, March, 1955
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Federal Reserve Bank of St. Louis

Conley Brooks, Minneapolis, a direc
tor of the First National Bank of
Minneapolis, has been appointed to
the board of directors of the Powell
River Company, Ltd., Vancouver, Brit
ish Columbia.
* * *

The American National Bank of St.
Paul was awarded a citation from the
United States Treasury Department
for its high degree of participation in
the recent savings bond drive.
Edward G. Bremer, chairman, Ram
sey county savings bond program, pre
sented the citation in the name of the
Secretary of the Treasury.
*
*
The surplus account of the First
Security State Bank of Saint Paul was
increased by $50,000 at the bank’s re
cent annual meeting. The capital ac
counts are: Capital $300,000, surplus
$250,000, undivided profits $35,000, re
serve $15,000, for total capital accounts
of $600,000.
* * *
Oscar B. Ukkelberg was elected
comptroller, and Donald D. Johnson,
assistant cashier, at a recent regular
meeting of the directors of the Chero
kee State Bank, St. Paul.
*
*

An award for “ Excellent Manage
ment” during 1954 has been made to
The First National Bank of Saint Paul
by the American Institute of Manage
ment, New York, New York.
This award, based on a special study
of management operations made by
the Institute, covers the following ten
areas: Economic function, corporate

structure, health of earnings, fairness
to stockholders, research and develop
ment, directorate analysis, fiscal poli
cies, production efficiency, sales vigor
and executive evaluation. The cita
tion was for the calendar year of 1954.
* * *
Peter Aamodt, head teller, has been
elected assistant cashier of the Fidel
ity State Bank of Minneapolis, C. Her
bert Cornell, president, announced.
Mr. Aamodt has been with the bank
since 1942.
=t= * *
Samuel Mairs, 75, chairman of the
board, Archer-Daniels-Midland Com
pany, died recently while vacationing
in the Caribbean.
Mr. Mairs, in addition to his ADM
post, was a director of the First Na
tional Bank of St. Paul and of the
First Bank Stock Corporation.
*
*
Carl G. Forsberg has been elected
assistant secretary of the Farmers &
Mechanics Savings Bank of Minneap
olis. He succeeds P. D. Esau as man
ager of the school savings depart
ment, Henry S. Kingman, president,
announced. Mr. Kingman said the
bank set new records for deposits,
surplus and mortgages during 1954.
=t= *
Herbert S. Woodward, former exec
utive vice president of the Columbia
Heights State Bank, has been named
vice president of the Santa Barbara,
California, safety council. Mr. Wood
ward retired from his banking post
about a year ago.
* * *
John deLaittre, vice president of the
Farmers & Mechanics Savings Bank
of Minneapolis, has been elected pres
ident of the Minneapolis Club.
* * *
Kenneth H. Dally and Harris B. Hal
verson, assistant trust officers, have
been promoted to trust officers at the
Marquette National Bank of Minneap
olis. C. H. Munson was named mort
gage loan officer.

69
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Northwestern Banker, March, 1955

M inn e so ta N e w s

F ifteen

W IN S L O W

F ron tet et!lit/ N o rth w estern N o tio n a l Haiti.

DAHL

H AN SO N

Fifteen changes in the staff of the
Northwestern National Bank of Min
neapolis were announced recently by
Joseph F. Ringland, president.
Advanced from assistant vice presi
dents to vice presidents were: Win
ston L. Molander, Eugeue E. Hedlund,
Lawrence B. Broom and Paul S.
Brorby.

Promoted to assistant vice presi
dents were: Roy C. Sorenson, Willis
F. Rich, Jr., and E. Ross Colburn.
Newly elected assistant cashiers are:
Bruce C. Winslow and Alden AV. Dahl.
Named assistant trust officers were:
Orrin A. Hanson, Henry I. Hewitt,
Willis F. Shaw and Warren F. Week,
Jr.
Henry B. Hennings was elected as

sistant secretary in the bond depart
ment and Emil A. Bullert was named
assistant comptroller.
Mr. Ringland reported at the annual

H E W IT T

SH AW

meeting of the hank’s board of direc
tors that Northwestern had one of the
best years in its 83-year history.
Despite an increase in operating
costs and taxes, the bank’s gross and
net earnings exceeded those of 1953.
Dividends paid totaled $825,000, an in
crease of $75,000 over 1953. Consoli
dated net operating earnings based on
50,000 shares of capital stock were
equal to $54.05 a share, compared with
$52.15 in 1953.
Deposits a v e r a g e d $415,859,849,
which was $14,889,344 higher than in
1953. Loans averaged $160,338,499,
higher than in any other year.
Of the 1,503 employees of the bank
and local affiliates at the end of the
year, 265 have qualified for the Cov
ered Wagon Club with 20 years or
more of service.
* * *
The St. Paul chapter of the Ameri
can Institute of Banking conducted

CAN A D A ’S
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o n t r e a l

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Chicago: Special Representative’s Office, 141 West Jackson Blvd.

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for FRASER Banker, March, 1955
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H E N N IN G S

BU LLERT

its winter seminar series in February
and early this month.
Speakers at the four meetings were
Lloyd \\Tilkes, executive secretary of
the Minnesota Highway Study Com
mission; A\7alter G. Seeger, chairman
of the St. Paul municipal stadium
committee; Rodney Q. Selby, indus
trial relations manager, First National
Bank of St. Paul, and Edward C.
Schleh, head of Schleh Associates.
Warren R. Hinze, A.I.B. chapter
chairman, was assisted in the semi
nars by Conrad L. Hedberg, John J.
Berney, \\Tilbur E. Hansen and Walter
L. Carpenter.

Wilfred David Provan, 63, assistant
vice president of the First National
Bank of St. Paul, died recently. He
was a member of the American Insti
tute of Banking. Surviving are his
wife, two daughters and two grand
children.
* * *
Arnulf Ueland, president of the Mid
land National Bank, Minneapolis,
served as Minnesota state treasurer in
February’s Crusade for Freedom Cam
paign.
* * *
Allen S. King, president, Northern
States Power Company, has been
elected a director of the Northwest
Bancorporation, J. Cameron Thomson,
president, announced.
Mr. King replaces Clarence E. Hill,
former board chairman of the North
western National Bank of Minneap
olis.
Mr. Thomson reported that 1954 was
another record year for the corpora-

M innesota N e w s

tion, with deposits and loans of affili
ated banks at the highest level yet
attained.
He said last year was the 12th consecptive year the net operating earn
ings before taxes of the corporation
and affiliates had shown an increase
over the preceding year.
Consolidated net income, after mak
ing provision for charge-offs and write
down, taxes on income and minority
interests, amounted to $9,099,961, or
$5.53 per share of common stock.
Gross operating earnings of $50,808,041 were up 7.1 per cent from 1953.
Directors of Northwest Bancorporation recently declared a regular quar
terly dividend of 55 cents per share
on common stock outstanding and the
quarterly dividend of 52% cents per
share on 4.20 per cent convertible pre
ferred stock.
* * *
Henry S. Kingman, president of the
Farmers & Mechanics Savings Bank,
Minneapolis, has beenre-elected vice
chairman of the MinnesotaCommu
nity Research Council. Arnnlf Ueland, president of the Midland Na
tional Bank, Minneapolis, was re
named treasurer.
The council investigates and estab
lishes standards of approval for char
ity campaigns in Minnesota.
* =1= *

Rural bankers of Minnesota met re
cently on the University of Minne
sota’s St. Paul campus for the third
annual bankers’ agricultural credit
conference, staged in cooperation with
the Minnesota Bankers Association.
Among speakers were Elvin Time,
agriculture agent, Worthington Na
tional Bank, Worthington, Minnesota,
and R. F. Eichty, president of the
First National Bank, Austin, Minne
sota.
The progam included discussions on
installment loans, financing, dealers,
property improvements, p e r s o n a l
loans and small business loans by
small banks.
* * *
Forty-six years of business and a
new addition to the State Bank of
Mound were celebrated recently with
open house.
The new facilities include an en
larged lobby, with new counters,
“drive-in” window and night deposi
tory, and two main entrances.
The Minneapolis suburban bank had
deposits of $2,395,265 December 31.
William H. A. Koehler has been pres
ident 42 years.
* * *
The First National Bank of Minne
apolis set new highs in earnings, capi
tal structure and loans and discounts

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Northwest ern Banker, March, 1955

M innesota N e w s

during 1954, Gordon Murray, presi
dent, reported at the annual meeting
of the board of directors.
Gross earnings were up 4.1 per cent
to reach a new high of $12,413,000.
Net operating earnings at $2,723,000
also were at an all-time high. Net
income was a record $2,705,000.
After payment of dividends amount
ing to $1,380,000, the bank’s total of
capital accounts, increased to $29,642,493 at year-end. Deposits averaged
$17,736,000 higher than in 1953. Loans
and discounts rose to an all-time peak
of $170,922,200 during 1954.
* * *
New all-time highs in gross earn
ings, operating earnings, deposits and
loans and discounts were established
in 1954 by the First Bank Stock Cor
poration and affiliated banks, Ellwood
O. Jenkins, president, reported at the
January meeting of the board of di
rectors.
The hoard declared a quarterly divi
dend of 30 cents per share on the cor
poration’s capital stock, payable on
March 10 to stockholders of record
February 18.
Consolidated net operating earnings
of the corporation in 1954 were $9,098,461, or $3.14 per share. Gross earn
ings were $46,290,948, an increase of
5 per cent from the previous year.

The promotion of Marshall 1). Smith,
mortgage loan officer, Marquette Na
tional Bank of Minneapolis, to assist
ant cashier in the mortgage depart
ment has been announced by Russell
L. Stotesbery, president of the bank.
Mr. Smith joined Marquette as a
member of its mortgage department in
May, 1952. He was made a mortgage
loan officer January 1, 1953.
* >i= *
Harry E. Kern, vice president, First
National Bank of St. Paul, was re
elected treasurer of the St. Paul Ath
letic Club.
* * *
Ruth Wittich, a member of the Mar
quette Insurance Agency, affiliated
with the Marquette National Bank of
Minneapolis, was elected president of
the Trail Blazer’s Club, a group com
posed of employees of the Marquette
National Bank, University National
Bank, Chicago-Lake State Bank and
affiliated Insurance Agencies, w h o
have been employed by their respec
tive banks 15 years or more.—End.

California Promotion
J. L. McElney, formerly assistant
vice president, was elected vice presi
dent of California Bank, Los Angeles,
recently.

CARL L. FREDRICKSEN
President
CLIFFORD L. AD A M S
Vice President
WILLIAM C. SCHENK
Vice President
STANLEY W . EVANS
Vice President
JOHN

S. HAVER
Cashier
JAMES L. SMITH
Asst. Cashier an d Auditor
KINLEY W . SMITH
Asst. Cashier
BEN E. HOLTDORF
Asst. Cashier
R A W S A . JENSEN
Asst. Cashier
R. K, DRAPER
Representative
M A X TOWNE
Representative

Northwestern
Banker, March, 1955

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Total year-end deposits of First
Bank Stock bank affiliates, after elim
ination of inter-bank deposits, in
creased to an all-time high of more
than $1,300,000,000.
Affiliated banks in and around Min
neapolis had 35 per cent of deposits
and accounted for 32 per cent of total
net operating earnings. St. Paul bank
affiliates had 29 per cent of deposits
and 29 per cent of net operating earn
ings.
Loans and discounts totaled more
than $515,000,000 at year-end, with the
Minneapolis area group of bank affili
ates accounting for 36 per cent of the
loans and discounts total, and the St.
Paul group 30 per cent.
Stockholders recently voted to in
crease the authorized number of shares
of capital stock from 3,200,000 to 3,500,000. Later, directors voted to author
ize holders of capital stock of record
February 24 to subscribe for 361,922
additional shares on the basis of one
share for each eight held, at a price
of $31.50 per share.
* * *
Lloyd L. Beider, vice president,
First National Bank of St. Paul, de
fined public relations as “plain, good
business manners” in a recent talk to
members of the St. Paul Business and
Professional Women’s Association.

MEMBER

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In Sioux City and surrounding area the Live Stock
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unusual amount of personal attention throughout each
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73
Mitchell National Bank’s annual re
ports of the past few years have won
awards for production and content.
J. M. Patton is president of the bank.
Richard Stebbins & Associates of Min
neapolis prepared the report.

More South Dakota News
On Page 9 8

S io u x F a lls JVetvs
Miller Bank Changes
Cletus E. Hart has been elected pres
ident of the Hand County State Bank,
Miller, South Dakota. He had been
vice president. Henry S. Bard and
Albert J. Shaw have been succeeded
on the board by Thomas Hart and
Carl E. Johanson.

Ten Year Period
Arrangements for scholarships made
recently by the Security Bank of Web
ster, South Dakota, which were an
nounced in the February issue of the
N o r t h w e st e r n B a n k e r , are to be $200
each year for the 10-year period 1955
to 1965 to youths who have shown out
standing interest and ability in agri
culture through high school and home
accomplishments, according to bank
President Thos. E. Porter.

Doyle D. Ream was named assist
ant vice president and manager of the
installment loan department, with
Gaylord Raabe as assistant cashier
and assistant manager.
Only change at Newell was to elect
Fred J. Boettger as assistant vice pres
ident and assistant manager.
In Spearfish, C. R. McCain was
named assistant vice president and as
sistant manager.

Elected Chairman

ERALD L. HILL resigned as vice
G
president of the Union Savings
Bank, Sioux Falls, to become manag

ing officer and cash
ier of the Farmers
& Merchants Bank,
in Aberdeen, South
Dakota. A resident
of Sioux Falls for
the past five years,
Mr. Hill will ass u me his ne w
duties April 1. He
has spent nearly 25
years in the banking profession.
* *

G.
E. Anderson has been elected
chairman of the board of directors of
g . l . H IL L
the Langford State Bank, Langford,
*
South Dakota.
Frank E. Duffy, cashier of the Union
A stockholders’ meeting was held
prior to the directors’ meeting and Savings Bank, was elected treasurer
new directors named for one year of the Sioux Falls Alumni Chapter of
terms are: G. E. Anderson, G. Nickel- Sigma Alpha Epsilon Fraternity.
son, Peter A. Anderson, Charles Paul
* * *
son and L. Erickson.
Ralph M. Watson, chairman of the
Cashier to President
board of the Northwest Security Na
“ Different” Report
tional Bank, Sioux Falls, was invited
E. E. Smith has moved from cashier
An annual report beamed strictly at by United States Representative Har
to president of the Farmers State
Bank, Marion, South Dakota. He was the customer instead of the board of old O. Lovre to Washington to partici
elected president at a directors’ meet directors has been produced by the pate in a conference with Robert B.
ing following the recent death of the Mitchell National Bank, in Mitchell, McLeaish, farm home administrator.
He has accepted the invitation.
bank’s former president, J. J. Smith. South Dakota.
Instead of pages filled with columns
* * *
of figures, the report is an attempt to
Charles D. Gregg, assistant vice
To Vice Presidency
relate the bank’s year in terms of
president and trust officer of the
Mitchell
people,
using
pictures
of
local
P.
A. Sattler, pioneer retired Per
Northwest Security National Bank,
kins county rancher, has been elected people, including bank personnel and was presented as a new member of
customers,
to
portray
the
way
services
vice president of the First National
the Rotary Club.
Bank, Lemmon, South Dakota. Mr. of the bank are put to use.
* * *
Sattler was elevated to the office left
Sioux Falls bank clearings rose
vacant since the death of George P.
from $31,070,359 in January, 1954, to
Allen who had served in that capacity
$32,412,796 in January, 1955.
for more than 20 years.
* * *
John V. O’Donnell, cashier, was add
ed to the board of directors to take
At the recent annual meeting of
the place of Mr. Allen, A. O. Rolien,
stockholders of Queen City Insurance
president, said.
Company, Sioux Falls, W. W. Baker,
president, First National Bank; Ralph
M. Watson, chairman of the board,
New Titles
Northwest Security National Bank,
Several changes in titles for present
and John Larkin, M. T. Woods and
personnel of banks in Belle Fourche,
E. H. Vorpahl were re-elected to the
Spearfish and Newell, have been made
board of directors. N. P. Delander,
by the First National Bank of the
president, First State Bank, St. Paul,
Black Hills.
Minnesota, and Henry Gnthnz, T.
Miles S. Wilson has the new title of
Parker Lowe and N. J. Wells, also of
assistant vice president and assistant
St. Paul, complete the board. Mr.
Patton (left) looks over layout of
manager of the commercial depart Jack
Guthuz is president of Queen City
annual report with Dick Stebbins, adver
ment, Belle Fourche branch.
Insurance Company.—End.
tising counsel for Mitchell National Bank.

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Federal Reserve Bank of St. Louis

Northwest ern Banker, March, 1955

M o n tan a N e w s

1 :1 0 0 a t II a l'ilia Ita al¿ Opea Hansa

THIS NEW STRUCTURE was the scene of an open house celebration recently at which more than 1,500 townspeople and outof-town friends were in attendance.

ORE than 1,500 patrons and.
community friends attended
the recent open house celebra
tion at the new home of Big Horn
County State Bank, Hardin, Montana.
The new building is 50 by 100 feet
in area and affords adequate facilities
for the most modern banking methods.
Included is a new night depository
for the safety and convenience of pa
trons in making deposits outside bank
ing hours. Fixtures in the modern

SPECIALLY-CONSTRUCTED blonde fixtures accentuate the
modern theme used throughout the interior of the new quarters
for the Big Horn County State Bank, Hardin, Montana.

lobby are of specially constructed
blonde wood, and the new machines
to be used are the latest in banking
equipment.
A pre-opening was held the night
before the grand opening and more
than 100 bankers and their wives were
entertained by the bank’s officers and
employees, according to LeRoy O.
Wallin, executive vice president.
Local merchants and professional
people helped sponsor a special section
in the Hardin newspaper to tell the
townspeople about the new bank
building, new accommodations, and
the advantages of having a progres
sive bank in the community.

Five Promotions

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Elected Chairman
James G. Edmiston was elected
chairman of the board of the Bank of
Columbia Falls, Columbia Falls, Mon
tana, at a recent meeting of directors.
He succeeds his father, J. G. Edmiston,
who announced that he has disposed
of his stock in the bank to George
Robin, Kalispell.
James G. Edmiston is cashier and
executive vice president and J. G. Ed
miston is president of the Conrad Na
tional Bank in Kalispell, Montana,

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most complete transit service
in the Rocky Mountain Region.

Seven days and
five nights a week,
your items are
speeded on
their way.

The Fir s t National Ba n k
of

Denver

Member Federal Deposit Insurance Corporation
P R O V ID IN G B A N K IN G S E R V IC E S I N C E I

Banker, March, 1955
Digitized Northwestern
for FRASER
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Recent promotions at the First Na
tional Bank, Missoula, Montana, in
clude: R. E. Noel, from cashier to vice
president; J. L. Kellogg, from assistant
cashier to cashier; R. E. Burns, from
auditor to assistant cashier, and, in the
installment loan department, John R.
Collins and Charles A. S. Rigg, from
assistant cashiers to assistant vice
presidents.

86O

New Cashier Elected
A. M. Shannon, connected with the
Browning Mercantile Company for 34
years, was elected cashier of the First
National Bank of Browning, Montana,

at the annual meeting of the board of
directors, succeeding John H. Gilbert,
who resigned after several years’ serv
ice with the bank.

Three Advance
At the First National Bank, Great
Falls, Montana, G. R. Straiton ad
vanced from assistant vice president
to vice president, Irving M. Monsos
from assistant cashier to assistant vice
president, and J. L. Creek from audi
tor to assistant cashier and auditor.

Bank's First Auditor
James Bennett has been named audi
tor of the First National Bank of
Havre, Montana. This position was
only recently added to the offices of
the bank, Mr. Bennett being the
bank’s first auditor.

Changes Name
The First National Bank of Havre,
Montana, is the new name of the for
mer Montana National Bank, having
been changed last month, according
to Richard M. Lockwood, president.
The change was in name only and all
officers and employees at the bank, an
affiliate of First Bank Stock Corpora
tion, remain the same.

Glendive Promotions
L.
C. Terrett has been advanced
from assistant cashier to assistant vice
president at the First National Bank,
Glendive, Montana, and was recently
elected to the board of directors. T.
A. Vashus has been promoted from
assistant cashier to cashier.
First National’s surplus fund was
increased $50,000, making the capital
$100,000, surplus $200,000 and deposits
more than $5% million, according to
G. P. Drowley, president.

More North Dakota News
On Page 9 9

N orth D a k o ta

NEWS
C. O. THOMPSON
President
Underwood

New Grafton Directors
Joe Thompson, prominent farmer,
and Howard Mills, Grafton business
man, were added recently to the board
of the Grafton National Bank, Grafton,
North Dakota. Dan Upham had re
cently retired from the board, so the
addition of the two new men increased
the number of board members to
seven.

To Hatton Board
G. M. Olson and O. H. Pladson were
named to the board of the Farmers
and Merchants National Bank, Hatton,
North Dakota, to replace J. 0. Ander
son and Albert O. Bjertness who re
cently retired from the board. Mr.
Olson is cashier of the bank.

for December 31, 1953. State banks
had available a total reserve of $33,375,171. This was $13,264,387 in excess
of the $20,110,783 required.

Geary H. Wagner

A. A. Mayer, president of DakotaNational, said the addition will pro
vide 5,800 additional square feet, giv
ing each department space now need
ed and leaving enough for expansion.

Geary H. Wagner, 54, cashier of the
First National Bank, Minot, North
Dakota, died recently of a cerebral
hemorrhage.
Mr. Wagner joined the First Na
tional Bank staff March 8, 1920.
He was appointed assistant cashier
January 11, 1949, and cashier January
12, 1954. He was renamed to that post
at the bank’s recent board of directors’
meeting.

Deposits and Reserves

Controlling Interest

C. C. WATTAM
Secretary
Fargo

Deposits in the banks of North Da
kota at the end of 1954 were almost
$16 million more than at the close of
1953. Totals December 31, 1954, were
$623,570,781, as compared to $607,652,167 on December 31, 1953.
Deposits in North Dakota’s state
banks December 31, 1954, were $228,012,503, as compared with $209,634,569

S. B. Wallander, president, First
State Bank, Froid, North Dakota, has
announced his purchase of the con
trolling interest in the bank from the
Schnitzler Corporation of Froid and
Catherine L. Schnitzler.

More North Dakota News
On Page 9 8

4 7 »Junior tta n h ers a t S ch ool

Langdon Promotions
Myles L. Johnson was promoted
from cashier to vice president of the
Northwestern Bank, Langdon, North
Dakota, succeeding A. J. Backes who
has retired. Harold C. Lothspeich has
moved from assistant cashier to cash
ier to replace Mr. Johnson.

New Cashier
Walter E. Tooley, Jr., has been pro
moted from assistant cashier to cash
ier at the American National Bank,
Valley City, North Dakota.
Mr. Tooley joined the bank staff in
June, 1951, after serving as assistant
cashier at the Grafton National Bank.

To Directorship
John W. Scott of Gilby and
Forks was elected a director
First National Bank, Grand
North Dakota, at the bank’s
annual meeting.

Grand
of the
Forks,
recent

Remodeling Continues
North Dakota’s winter temperatures
have had no apparent effect on the
extensive remodeling work now being
done at the Dakota National Bank,
Bismarck, North Dakota.
Plans call for complete remodeling
and rearrangement of present bank
ing quarters and construction of ad
ditional space to the rear of the pres
ent quarters.

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ATTENDING the School for Junior Bankers were these young North Dakota bankers
(left to right): Lylith Rostad, Elk Valley State Bank, Lai'imore; Delbert Domres,
Northwestern Bank, Langdon; Thomas A. Dawley, First State Bank, Munich; Lyle M.
Johnson, Grafton National Bank, Grafton, and Morris P. Danielson, Rolette County
Bank, Rolla.

O R T Y -SE V E N registrants from
F
throughout North Dakota helped
make the recent North Dakota School
for Junior Bankers the most success
ful in history, according to B. P. Mc
Dermott, First National Bank, Grand
Forks, director.
Classes were instructed by: Kenneth
B. Jacobson, assistant cashier, Red
River National Bank, Grand Forks;
I. R. Rector, manager, Burroughs
Corporation, Fargo; Dr. William E.
Koenker, professor of economics, Uni
versity of North Dakota; Mr. McDer

mott; John Staples, associate professor
of accounting, University of North
Dakota; W. D. Johnson, vice president,
Red River National Bank, Grand
Forks; E. L. Olson, cashier, First Na
tional Bank, Grand Forks; Codie D.
Bell, vice president and actuary, Pio
neer Mutual Life Insurance Company,
Fargo, and Philip R. Bangs, attorney
of Grand Forks.
The annual banquet at the student
union building was sponsored by
Greater Grand Forks Clearing House
Association and was attended by 150.
Northwest ern Banker, March, 1955

COMPLETE CORRESPONDENT FACILITIES * COMPLETE CORRESPONDENT FACILITIES * COMPLETE CORRESPONDENT FACILITIES • COMPLETE CORRESPONDENT FACILITIES

COMPLETE CORRESPONDENT FACILITIES • COMPLETE CORRESPONDENT FACILITIES * COMPLETE CORRESPONDENT FACILITIES • COMPLETE CORRESPONDENT FACILITIES

* COMPLETE CORRESPONDENT FACILITIES * COMPLETE CORRESPONDENT FACILITES • COMPLETE CORRESPONDENT FACILITIES *

• COMPLETE CORRESPONDENT FACILITIES * COMPLETE CORRESPONDENT FACILITES * COMPLETE CORRESPONDENT FACILITIES *

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for FRASER Banker, March, 1955
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N e b ra sk a

NEWS
J. V. JOHNSON
President
Tecumseh

HARRIS V. OSTERBERG
Secretary
Omaha

A. B. Lancaster

Triple Tribute

A. B. Lancaster, 49, assistant cashier
of the Wymore National Bank, Wymore, Nebraska, died last month after
being in failing health for some time.

It was “Triple Tribute Day” in the
Nebraska Legislature on February 11,
when members of the legislature
paused to pay tribute to Abraham Lin
coln, the Boy Scouts and to Senator
Otto Kotouc, Humboldt, Nebraska,
banker.
In observing President Lincoln’s
birthday and National Boy Scout
Week, the Unicameral also paused to
honor Mr. Kotouc on his 40th anni
versary of founding the Home State
Bank in Humboldt. The words of
praise for the Democratic senator were
uttered by Republican Leader Senator
Earl Lee, Fremont.
Senator Lee told how the bank had
started with resources of $38,000 and
had struggled through World War I,
the subsequent crash and three hold
ups, until today it has $2,700,000 re
sources.
At the conclusion of the tribute,
Senator Jack Larkin, chairman of the
banking committee, entered with a
huge birthday cake which was cut by
the “ Banker of the Day.” Members
then voted to send flowers to the for
mal birthday ceremony of the bank
held that weekend. More than 700
persons attended the bank’s open
house.

Assume New Posts
Two Nebraska brothers have ac
cepted new posts in the banking pro
fession. Charles Bruce Novak has
been promoted from assistant cashier
to cashier of the McDonald State Bank
of North Platte, while his younger
brother, Leon Novak, has accepted a
position with the Home State Bank
of Humboldt.

Kearney Meeting;
The ins and outs of banking were
presented before a capacity audience
of women at a meeting sponsored by
the two banks of Kearney, Nebraska.
Glenn Yaussi, senior vice president of
the National Bank of Commerce, Lin
coln; Lynus Southwick, vice president
of the First National Bank of Lincoln,
and John Shipperling, public relations
director of the National Bank of Com
merce, were the featured speakers.

Farm Meeting
The Farmers and Merchants Bank
of Milford, Nebraska, last month spon
sored a livestock meeting in that city.
Paul Guyer, livestock nutritionist from
the state extension service, was the
featured speaker.

Fertilizer Meeting
More than 65 persons attended the
meeting held recently in Pilger, Ne
braska, to hear discussions on ferti
lizers, crop rotations and legumes.
Extension agronomists from the Uni
versity of Nebraska led discussions at
the meeting sponsored by the Farm
ers National Bank of Pilger.

Named President
Francis R. Orshek, Fremont, Ne
braska, businessman, last month was
elected to the board of directors and
named president of the First National
Bank of that city. He succeeds Wil
liam N. Mitten, who will serve as
chairman of the board.

Public Relations
Bankers from 15 towns in the sur
rounding territory met in Seward, Ne
braska, last month to hear a discus
sion of public relations. The discus
sion was under the leadership of By
ron Lopp, public relations director of
the Central Bank and Trust Company,
Denver, Colorado.

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Federal Reserve Bank of St. Louis

tors. Mr. Orshek, originally from Ce
dar Rapids, Nebraska, moved to Fre
mont in 1936. His brother is cashier
of the Cedar Rapids State Bank. Mr.
Orshek has been engaged in the gen
eral construction business since mov
ing to Fremont and plans to continue
in that business.
Mr. Mitten joined the bank in 1920,
was elected assistant cashier in 1921,
cashier in 1926, director in 1929, vice
president in 1936 and was named pres
ident of the bank in 1938. During his
term of office as president total re
sources increased from $1,780,000 to
$11,500,000.

Social Security
Farmers in the Table Rock, Nebras
ka, area met last month to hear a
discussion on the social security pro
gram as it affects farmers. The meet
ing was sponsored by the State Bank
of Table Rock. Featured speaker was
Joseph S. Sewall, field manager of the
Lincoln office of the Social Security
Administration.

Geneva Scholarship
The Geneva State Bank, Geneva, Ne
braska, has set up a $10,000 scholar
ship fund in cooperation with the
University of Nebraska Foundation.
Each year $400 will be paid out to a
student graduating from Geneva High
School, with that amount being allo
cated to each award winner over a
two year period.

Presented Shield
The First National Bank of Ord, Ne
braska, has presented that city’s police
department with a bullet-proof shield
which will protect officers from injury
from any hand weapons, including the
Thompson sub-machine g u n. The
shield is slotted to permit firing by
the officers. Clark Wechback, bank
president, says it is unreasonable to
expect officers to attempt to break up
holdups unless they have some form
of protection.

Belden Improvement
The First National Bank of Belden,
Nebraska, has recently completed a
remodeling program which might well
make it a model bank for other cities
interested in remodeling their banks.
The ideas put into effect are original,
unique and not of a faddish nature,
making it suitable for many years to
come.

Outstanding Men
F. R.

ORSH EK

D. M IT T E N

N e w p r e s id e n t an d d ir e c t o r s o f th e F ir s t
N a t io n a l B a n k o f F r e m o n t , N e b r a s k a

David Mitten, son of Mr. Mitten,
was also named to the board of direc

John Sherwood, assistant cashier of
the Peoples-Webster County Bank,
Red Cloud, Nebraska, has been named
the “Outstanding Young Man of the
Year” by the Red Cloud Junior Cham
ber of Commerce.
Northwest ern Banker, March, 1955

HE Omaha National Bank, in its
T annual
report for 1954, notes earn

ings after taxes were $3.70, as com
pared with $4.22 in 1953. Taxes
amounted to $2.93 per share. The
stock is now distributed among 946
shareholders.
At year end, total capital funds were
reported as $17,093,059, including $843,008 transferred from unallocated bond
reserve to reserve for contingencies.
Loans outstanding amounted to $93,555,379, while deposits were slightly
over a quarter of a billion dollars.
* * *
The Douglas County Bank opened
its auto-bank window the first of this
month, according to President Ken
neth G. Harvey. The window permits
customers to do their banking direct
from their cars.
Transactions handled at the window
include personal loan payments and
deposits and withdrawals from check
ing and savings accounts. Forms nec
essary for window transactions are
available at the window, where an at
tendant is on duty during banking
hours.
* * *
Orville V. Nielsen, former cashier at

the Plattsmouth State Bank, Plattsm outh. Nebraska,
and with the bank
for more than nine
years, has joined
the S t o c k Yards
National Bank of
Omaha in the cor
respondent b a n k
d e p a r t me n t . Be
tween h i s depar
ture from the bank
in Plattsmouth to
O. V . N IE L S E N
joining Stock
Yards National, he was in the insurance business in Plattsmouth.
* * *
Mrs. Victor B. Caldwell, Si'., 89, died
last month in an Omaha hospital after
a long illness. Her husband was presi
dent of the United States Bank of
Omaha prior to his death in 1915.
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Omaha’s best known woman banker,
Miss Olsson, more popularly known among
bank executives as “Anna T.,” has
been assistant cashier of the Omaha
National Bank and of the Live Stock
National Bank prior to the merger
last year.
Anna T. Olsson, is retiring.

ANNA

OLSSON

R e t i r i n g a f t e r 40 y e a r s o f b u s i n e s s
e x p e r ie n c e , m o s t ly w it h O m a h a b a n k s .

She is the first and only woman offi
cer of the Live Stock National, join
ing the bank in 1918, becoming man
ager of the savings department. Her
other experiences include secretarial
work, teaching and homesteading.
Voted Omaha’s “Outstanding Wom
an of the Year” in 1953, she also is
known as a gardner, doll collector,
and stamp collector. She was honored
recently at a dinner given by the em
ployees of the former Live Stock Na
tional Bank.
* 4= *
Cecil W . Means, assistant vice presi
dent, Stock Yards National Bank, was
the main speaker at the Fifth Annual
Farmer Feeder Banquet in Neola,
Iowa, recently. He spoke on the out
look of the live stock situation. More
than 550 persons attended.

Eight scholarships of $300 each will
be awarded by the Federal Land Bank
of Omaha to high school seniors plan
ning to enter agricultural colleges
next fall. President H. A. Viergutz
says two scholarships will be awarded
to students in Iowa, Nebraska, South
Dakota and Wyoming.
* * *
John M. Shonsey, vice president of
the Omaha National Bank, was fea
tured speaker at a feeder’s banquet
last month following a day of feedlot
visits for farmers participating in the
annual Buffalo County Feeders’ Tour.
Included in the demonstrations were
cattle on full feed using Stilbestrol
in the ration.
4 * t
Henry Boose, vice president of the
United States National Bank of Oma
ha, was injured last month in a twocar collision. He was taken to the
rmmanuel Hospital with possible back
and internal injuries. At last report
he was progressing satisfactorily. The
driver of the second car was booked
for reckless driving.
* * *
William H. Davidson, Stanwood,
Iowa, and Charles R. Kellogg, Valen
tine, Nebraska, were elected chairman
and vice chairman respectively of the
board of directors of the Farm Credit
District in Omaha.
4= * *
A. F.Jacobson, president of the
Northwestern Bell Telephone Com
pany, last month was named a director
of the United States National Bank.
He s u c c e e d s Sanford B. Cousins,
whom he replaced as head of the tele
phone company recently.
Mr. Jacobson, a native of Omaha,
started his career with Northwestern
Bell Telephone Company in 1922. He
worked for the Lincoln Telephone
and Telegraph Company while attend
ing the University
of Nebraska, but
w a s a g a i n em
ployed by Northw e s t e r n Bell in
O m a h a following
his schooling.
A series of pro
motions led to the
position of director
of operations f o r
the Bell System’s
Long Lines depart
ment in New York in 1952 and assist
ant vice president, operations of the
American Telephone and Telegraph
Company in 1953, the position he left
to take the presidency of the North
western Bell Company.
* * *
John R. Lauritzen, vice president of
the First National Bank of Omaha,
has been appointed to the Vestry of

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T h is man could be a livestock feeder, or a commission man,
— but he isn’t. He’s an Omaha National loan officer.
You might not think of your banker as wearing dirty boots,
but it’s all in a day’s work to him. Our man in the mud-smeared
boots is doing something we regard as essential.
He’s keeping posted on current livestock trends — and
right down in the stock yards, where he gets first hand information.
No matter what kind of business you’re in, you’ll find
a loan ofhicer at The Omaha National Bank who knows
the kind of financing you want. A man with whom you can
do business, because he talks your language.

‘J-

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Federal Reserve Bank of St. Louis

The Omaha National Bank
“Helping Omaha Grow Since 1 8 6 6 ’*
M EM BER

FEDERAL

DEPOSIT

INSURANCE

CO RPO RATIO N

Northwestern Banker, March, 1955

N e b ra sk a N e w s

Trinity Cathedral in Omaha. He was
chairman of the committee for the
“ Every Member Canvass” on behalf of
the cathedral, which resulted in the
most successful solicitation in the 98
year history of the church.
* * *
The Omaha Clearing House Associa
tion at its annual meeting elected

ha, as its president. Other officers
elected were A. J. Hallas, president of
the Stock Yards National Bank, vice
president, and H. V. Osterberg, secre
tary of the Nebraska Bankers Associa
tion, secretary-treasurer.
* * *

Ainsworth, Nebraska, it was voted to
increase the surplus from $50,000 to
$70,000. Also at the meeting, Forrest
Kern, an employee of the bank, was
promoted to assistant cashier.

Hebron Depository

The Beatrice National Bank, Bea
trice, Nebraska, last month offered a
unique window display for residents
of Henry Shierkolk, foreman of the
were included in the display, the work
of Henry Schierkolk foreman of the
Peterson Manufacturing Company in
DeWitt, who makes taxidermy his
hobby.

The Thayer County Bank at He
bron, Nebraska, has installed a night
depository for the benefit of the farm
ers in that area. The city, which was
leveled by a tornado in 1953, has a
very active auction sales pavilion, and
on sale days farmers receiving cash
for their goods found it impossible to
deposit their receipts until the follow
ing day. The new depository makes
it possible for these receipts to be de
posited the same night as the sale,
thus eliminating additional trips to
town or long hours by the bank offi
cials.

Receives Award
Willard Lynch, Jr., assistant vice
president of the Guardian State Bank
of Alliance, Nebraska, has received the
annual Junior Chamber of Commerce
Award as the “Outstanding Young
Man of the Year.”
ELLSW O RTH M OSER
H e a d s O m a h a C le a r in g H o u se

president of the
United States National Bank of OmaEllsworth

Moser,

Animal Display

Additional Duties
The Central National Bank of Co
lumbus, Nebraska, has announced that
Julian E. Meyer, Jr., assistant cashier
and auditor, has been assigned the
additional duties of assistant trust offi
cer.

G. W . Walley

Surplus Ineresaed

Gerald W. Walley, assistant cashier
of the City National Bank in Hastings,
Nebraska, died recently of a heart con
dition. He had just returned home aft
er attending a concert. He had served
the bank for more than nine years and
had been active in civic affairs.

At the recent annual meeting of
stockholders of the National Bank of

Capital Increase
At the annual meeting of stockhold
ers of the Bank of Wood Lake, Ne
braska, the capital stock of the bank
was increased from $25,000 to $50,000.
As a result of the action the stock was
raised from 250 to 500 shares.

Chartered b y C on gress 1890

OUR SERVICE

The Company W e Keep

Rounded by

Inter-State is proud to be known by the

3 0 Years of
Experience

long list of banks with which we have
correspondent connections. Consult any
one of these institutions. You will find
that Inter-State does everything possible

in the

to build up tlie business of our corre
spondent banks. You’re invited to visit

INVESTMENT
BUSINESS

us and see for yourself bow well we can
serve you.

the Inter -S tate
LIVESTOCK EXCHANGE SL OG,

National Bank
I4TH.

AND

GENESEE

Member Federal Deposit Insurance Corporation

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STS.

Smith, Polian & Co.
424 Omaha National Bank Bldg.
Omaha 2, Nebraska
JAckson 5065

at the
to facilitate your banking needs in Omaha’s livestock market

P A C K IN G HOUSES

C O M M ISS IO N MEN

RETAILERS

ORDER BUYERS

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PRO DUCERS

CO U N TR Y B A N K S

Our 68 years experience, unexcelled facilities and convenient location
assure you prompt, profitable correspondent service
on all livestock items.

THE ONLY BANK IN OMAHA’S
GREAT UNION STOCK YARDS

S T O C K Y A R D S N A T I O N A L BANK
Livestock Exchange Bldg.

MEMBER FEDERAL DEP OSI T I N S U R A N C E

O m aha, Nebr.

CORPORATION

Northwest ern Banker, March, 1955

N e b ra sk a N e w s

Herman Promotion
The Herman State Bank of Herman,
Nebraska, has announced the appoint
ment of Kenneth Wachter as an as
sistant cashier. Action was taken at
the bank’s annual meeting. He has
been with the bank since 1952, farm
ing near Herman prior to that time.

Purchases Bank
Elmer L. Peterson, assistant cashier
of the First National Bank of Lincoln
for several years, has purchased an
interest in the Farmers Bank of Clatonia. He purchased the stock owned
by E. J. Chittenden and will take
over the management of the bank,
becoming its president. Former Pres
ident C. William Stenmeyer will con
tinue as chairman of the board of

9 n J li+ ico-U t

directors and Herbert J. Riechers will
remain as cashier.

Alfred Viren
Alfred Viren, one of the founders of
the First Security Bank of Holdrege,
Nebraska, died rcently at the age of
79. He had served on the board of
directors of the bank, was a pioneer
building contractor and was active in
his community.

Advanced to President
At a meeting of the directors of the
First National Bank, Mitchell, Nebras
ka, L. Newell was advanced from vice
president to president of the bank.
He succeeds the late M. B. Quivey.
J. W. Sanford was named vice presi
dent.

*7h e. G a n tc tie + tta l —

There |S a difference—
For the Best in Co-operation and
Efficiency U se

(ONT1NENTAL NATIONAL

BVk
LINCOLN
Member Federal Deposit Insurance Corporation

INVESTMENT SERVICE FOR BANKS
Specializing in Nebraska
Municipal Bonds

KIRKPATRICK-PETTIS COMPANY
540 Omaha N ational Bank Bldg.
O M A H A , N EBRASKA

Former Mitchell residents, the New
ells will move once more to Mitchell
from their ranch north of Lingle,
Wyoming.

Named As Officer
A. S. “Chico” Chaves, former cashier
and comptroller of the Live Stock Na
tional Bank of Omaha and now man
ager of the W. D. Messenger and Com
pany Accountants, Lincoln, has been
named vice president and director of
the Clarkson Bank, in Clarkson, Ne
braska.

Gains Bank Control
Control of the First National Bank
of Stanton, Nebraska, was gained last
month by two Stanton residents. Leo
Nixon, cashier of the bank, and his
sister, Mrs. Alberta Beindorff, a direc
tor, purchased the stock owned by
Mrs. Irene Miller Jensen, widow of
the long-time president of the bank,
the late Harry D. Miller. At the re
organization meeting Mr. Nixon was
elected president and his sister vice
president. Dan Harris continues as
assistant cashier.

Prague President
H.
E. Vackiner, cashier of the Bank
of Prague, Nebraska, has been named
as that bank’s new president, follow
ing the annual meeting of the direc
tors and stockholders. V. L. Shimerka
will serve as vice president and Lu
cille and Max Vlasak as assistant cash
iers. Directors will include Mr. Shi
merka, Mr. Vackiner, James A. Perk,
Hartmann Vackiner and B. L. Vack
iner.

Industrial Position
Clyde H. Sudman, vice president of
the Guardian State Bank, Alliance, Ne
braska, has been named president of
the Alliance Development Corpora
tion. The group has purchased a 97acre tract of land for industrial sites
and will dispose of it at a cost-plusexpense arrangement.
YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE, VAULT AND
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DigitizedNorthwestern
for FRASER Banker, March, 1955
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Federal Reserve Bank of St. Louis

P R O V ID IN G G R O U P LIFE, A C C ID E N
T A L D E A T H A N D D IS M E M B E R M E N T ,
A C C ID EN T A N D S IC K N E S S

, H O SP ITA L

A N D S U R G IC A L B EN EFIT S

F IRST N A T I O N A L B A N K B U I L D I N G , C H I C A G O 3 , I L L I N O I S

N e b ra sk a N e w s

Ralston Officers
R. F. Clarke, president of the Ral
ston Bank, Ralston, Nebraska, has an
nounced the promotion of Dorothy
Wedge to assistant cashier and the
election of E. H. Littrel as cashier to
fill a vacancy created by the resigna
tion of Melvin Johnson in November.

Heart Attack
Nels S. Strom, cashier of the Bank
of Madison, Nebraska, was admitted to
a Norfolk hospital last month after
suffering a heart attack while work
ing in the bank. His condition at last
report was satisfactory.

Stock Doubled
The Ravenna Bank, Ravenna, Ne
braska, started the new year by dou
bling its capital stock at its annual
meeting of stockholders. Capital stock
now stands at $100,000. The increase
was accomplished by a transfer from
undivided profits and reserves.

Elkboru Promotion
Mabel Hamann, an employee of the
Farmers State Bank of Elkhorn, Ne
braska, since 1943, has been named an

elected a vice president in addition to
his duties as cashier. G. A. Dunlap
continues as executive vice president.

assistant cashier of that bank. An
nouncement was made last month fol
lowing a meeting of the board of di
rectors.

Tekamah Clinic
Names Director

Approximately 800 farmers attended
the annual “Farm Clinic” sponsored
in Tekamah, Nebraska, by the First
National Bank. Another clinic of a
similar nature is staged in the fall by
the bank for businessmen of the Te
kamah trade territory.
Speakers on this year’s program in
cluded Bruce Russell, president of
Farmers National Company, Omaha;
Tony L. Westra, vice president, North
west Security National Bank, Sioux
Falls; Harold Gunderson, extension
entomologist of Iowa State College,
Ames, and Jeff H. Williams, attorney
and humorist-philosopher from Chickasha, Oklahoma.

The Tilden Bank of Tilden, Nebras
ka, has named a new director. She is
Mary Stuart Kinder, the only surviv
ing member of the family of James
Stuart, who founded the bank in 1877.

Remodel Bank
The Anchor Bank, located in Merriman, Nebraska, has been given the
modern look in banking. The outside
doors are of plate glass, swinging in
the latest style metal frames. The
interior wood is blonde, including the
doors, tellers’ cages and counters. Oth
er improvements include the lowered
block ceiling, freshly painted walls
and an air conditioning unit.

Succeeds Husband
Returns to Milford
D. L. Dunlap, who recently returned
from four years’ duty with the Army
Air Force, including service in Great
Britain, has been elected a vice presi
dent of the Farmers and Merchants
Bank of Milford, according to M. W.
Dunlap, president. L. R. Lull was

The annual stockholders’ meeting of
the Commercial State Bank of Wausa,
Nebraska, brought about only one
change in officers. Alice Bornholdt
was elected vice president of the bank,
succeeding her husband, H. J. Born
holdt, who passed away near the mid
dle of last year.

where b e t t e r correspondent banking starts

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Federal Reserve Bank of St. Louis

B a n k

& T ru st

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C o .

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• Federal Deposit Insurance Corp.

Northwestern Banker, March, 1955

services were held
FUNERAL
cently for Floyd Seybolt, 85,

re
or
ganizer of the Union Bank and College
View Bank. He was also a former
national bank examiner. Born in Mid
dletown, New York, he attended the
University of Nebraska, beginning his

banking career in the First National
Bank and serving later as an assistant
cashier of the Union Savings Bank.
In addition to his work with Lincoln
banks, he also organized banks in Mil
ford, Ulysses, Walton and Geneva.
=t= =1= *

serving NEBRASKA |J§§|
for Generations

Since

1871,

the

First

National Bank o f Lin
coln has been providing
m ade-to-order

banking

services.
W hether it’s an excess
loan or any other prob
lem, think first o f First
National o f Lincoln— as
close to

you

your

telephone.

Speedy transit service

Howard A. Chapin, trust investment
officer and assistant secretary of the
First Trust Company of Lincoln, has
recently been elected to a three year
term on the board of directors of the
Lincoln Y.M.C.A.
He adds this responsibility to a long
list of other activities, including serv
ice as president of the Trust and Es
tate Division of the Nebraska Bankers
Association and as a member of the
executive committee of the OmahaLincoln Financial Analysts Society.
Mr. Chapin also is active in the Ex
change Club of Lincoln, the Univer
sity of Nebraska Alumnae Association
and the Lincoln Chamber of Com
merce.
* * *
The United States Treasury Depart
ment has ruled that no branch bank is
needed at this time by the Lincoln
Air Force Base. The commander of
the base had asked that a Lincoln
commercial bank be authorized to es
tablish an agent on the base. First
National, National Bank of Commerce
and the Continental National had ap
plied.
* * *
Howard Hadley, vice president and
trust officer of the Continental Nation
al Bank of Lincoln, attended the mid
winter trust conference of the Ameri
can Bankers Association in New York.
He and Mrs. Hadley attended the
meeting, stopping in Florida on the
way.
* * *
R. Max Peterson, assistant cashier
of the Continental National Bank of
Lincoln, was elected president of the
Lincoln Personnel Association recent
ly.—End.

Celebrates Birthday
H. C. Van Horne, Pawnee City, Ne
braska, banker for 73 years, observed
his 91st birthday last month. He was
honored on the occasion by a family
dinner at the home of his daughter.
He began keeping books for the Farm
ers National Bank in 1882, later be
coming cashier and president, before
his retirement as an active officer. He
still serves as a director of the bank.

To Bank Position

The First
Is itional iBank
of Li neoln
Northwestern
Banker. M a r ch , 7955

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Federal Reserve Bank of St. Louis

1 0 lh & O

S tree ts

Lowell Jepson, county agent for Se
ward county, Nebraska, has resigned
to accept a position with the Cattle
National Bank in Seward.

BANKS
Phone 2 -8 5 6 !

L in c o ln , N e b r a s k a

Member FDIC

BOUGHT

and

Y E A R S O F C O N F ID E N T IA L D IG N IF IE D

SO LD

S E R V IC E

(Sfrg (giù iSeliabk
CHARLES E. WALTERS CO.
1313 FIRST NATIONAL RANK BUILDING

OMAHA, NEBR.

Nebraska N e w s

S t. •Joseph N e w s
FRANKLIN EVANS, vice pres• ident of the American National
Bank of St. Joseph, has been ap
pointed to the Ad
visory B o a r d on
Installment Credit
of t h e American
Banke r s Associa
tion for the 10th
Federal R e s e r v e
District.
He replaces Cyril

J. Jedlicka, v i c e

president, City Na
tional B a n k and
W . F. E V A N S
Trust Company of
Kansas City, Missouri, who recently
was appointed to the Installment
Credit Commission of the American
Bankers Association.
Mr. Evans is in charge of the in
stallment loan department of the
American National and is active in
many banking groups, including the
St. Joseph Chapter of the American
Institute of Banking, the Installment
Lenders Organization of Greater Kan
sas City, and he is presently serving
his fourth year on the installment
credit committee of the Missouri
Bankers Association.
* * *
Last month the name Tootle Na
tional Bank officially replaced that of
Tootle-Lacy National Bank of St. Jos
eph. The bank’s new trademark is
“A name in banking for four genera
tions.” Milton Tootle, grandfather of
Milton Tootle, the present president,
started in banking in St. Joseph in
1857. The private bank of Tootle-Lem
on & Company was opened July 8,
1889, by Thomas E. Tootle and John
S. Lemon. The name became TootleLacy National Bank in 1918.
* * *
Milton Tootle, president of Tootle

National Bank, St. Joseph, discussed

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Federal Reserve Bank of St. Louis

//>.#.# N e b r a s k a G rou p M e e t in g s
Group
1

4
6

5
2

Monday
Tuesday
Wednesday
Thursday
Friday
Friday

Meeting Place
Lincoln
Hastings
Scottsbluff
North Platte
Columbus
Norfolk

Date
April 18
April 19
April 2 0
April 2 1
April 2 2
April 23

investments at a meeting last month,
called in the public interest by the
St. Joseph Y.W.C.A.
* * *
A recent bank management confer
ence held at Columbia, Missouri, was
attended by Milton Tootle, Jr., vice
president and cashier of Tootle Na
tional Bank; Charles Richmond, vice
president, American National Bank;
H. H. Broadhead, Jr., vice president,
First St. Joseph Stock Yards Bank,
and John F. Killackey, Jr., agricul
tural representative of the First Na
tional Bank.—End.

W om en’ s Investment Forum
Omaha members of the Nebraska
Investment Bankers Association will
present a forum on investments for
the Women’s Division of the Omaha
Chamber of Commerce on March 16, 23
and 30. The first meeting on March
16 will follow a dinner meeting of
the Women’s Division and will run
from 8:00 to 9:30 p. m. The other two
meetings will be scheduled from 7:30
to 9:30 p. m. All meetings will be held

in the Chamber of Commerce dining
room.
There will be a panel of four asso
ciation members for each meeting.
Roderic Crane, professor of economics
at the University of Omaha, will act
as moderator. Basic information con
cerning investments and investment
planning will be provided with the
following general outline:
First meeting—“ Instruments of In
vestments.” Discussion of bonds and
stocks, and the different kinds of each.
Second meeting — “An Investment
Program—Part One.” How to buy
and sell, how dividends are paid, eval
uation of approaches to common stock
investments and specific investment
programs.
Third meeting — “An Investment
Program—Part Two.” Sources of infor
mation, how to read a financial page,
pitfalls, film, investment company
stocks and local securities.
There is no charge for attendance at
these meetings, but admission is by
ticket only. Guest tickets can be ob
tained from Marie Flanagan, WachobBender Corporation, Omaha.

MUNICIPALS FOR BANKS
M em ber

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Des Moines, Iowa

M ember: Federal Deposit Insurance Corporation
Federal Reserve System

87
cashier. Cost of the work will be
about $8,000. The auto teller will be
on Main Street.
The teller will have two service
windows for customers. A canopy
will be erected to extend over the
entrance and the auto teller windows.

Record Deposits
Deposits in Iowa’s 560 state-char
tered banks reached $1,823,094,451, an
all-time peak, December 31, 1954, ac
cording to Newton P. Black, state su
George A. Elgin
H. E. Boehmler
perintendent of banking.
They increased by $47,086,995, or by
H. E. Boehmler, director of the First George A. Elgin, 87, president of the
National Bank, Hampton, Iowa, since
Kalona Savings Bank, died recently at 2.65 per cent during the year, and
its organization in 1953, died last his home in Kalona, Iowa. Mr. Elgin were $67,568,000 larger at year end
month. In his place the board elected was elected to the board of directors than on June 30.
Time and savings deposits of $522,Fred A. Keepf, who also has been of the Kalona Savings Bank in 1899
with the bank since its organization. and in 1902 became assistant cashier. 251,000 at year end were $40,250,000
Mr. Keepf has been cashier at the He had served as president of the larger than on June 30, and $33,195,000 larger than at the end of 1953.
bank.
bank since 1913.
V.
D. Hochstetler has been elected Mr. Black also reported that total
president, to succeed Mr. Elgin, and assets of the 560 banks and 162 bank
In Grinnell Move
O. L. Rogers was named vice presi offices were $1,971,216,416, a record.
Leland Beneke of Laurens, Iowa, dent.
They increased by $60 million during
has become associated with the Powe
the year.
shiek County National Bank, Grinnell.
Loans totaling $681,807,857 at year
$ 1 0 ,0 0 0 Transferred
end also reached record level, Mr.
At the stockholders’ meeting held Black reported. They increased by
Dr. Ivan K . Sayre
recently at the Randolph State Bank, $94,128,000 during 1954.
Dr. Ivan K. Sayre, vice president Randolph, Iowa, $10,000 was trans
U. S. government deposits amount
and director of Farmers and Mer ferred from the undivided profit ac ed to $42,884,395 at year end, or $6,346,chants Bank, Winterset, Iowa, who count to the surplus fund. Capital 252 more than on December 31, 1953.
died recently, has been succeeded by
stock is $30,000. Surplus now is $50,The state-chartered banks had $359,Dr. H. U. Garrett of Des Moines.
000. Total capital funds are more 805,075 in cash on December 31, 1954.
The board of directors now consists than $100,000.
This was $21,855,352 more than their
of Dr. Garrett; ex-Senator R. R. Gil
cash a year before.
lespie, Dexter, Iowa; Clyde V. Guye,
Total capital stock of the banks on
Plans Expansion
Madison county farmer; J. A. Ram
December 31, 1954, was $40,382,000.
Valley
State
Bank,
Rock
Valley,
sey, retired Winterset mortician; Hal
They had $57,978,500 in surplus, and
S. Chase II, Chase Investment Com Iowa, recently purchased a 47-foot lot $54,512,560 in undivided profits and re
adjacent
and
to
the
south
of
the
pres
pany, Des Moines; Herbert Ehm, Ben
serves.
Franklin Store, Winterset, and N. E. ent banking house in order to expand
During the year they added $2,386,its
present
quarters.
Building
plans
Kelley.
500,
or 6.28 per cent, to capital; $3,660,have not been announced.
750, or 6.74 per cent, to surplus, and
$6,195,070, or 12.82 per cent, to undi
Laurel Bank Changes
New Auto Teller
vided profits and reserves.
Newly elected members of the board
Work
has
started
on
a
sidewalk
auto
The $152,873,060 total capital funds
of directors of the Peoples Savings
Bank of Laurel, Iowa, are: Thomas teller for the Council Bluffs Savings amounted to 8.39 per cent of total de
L. Laverty, Alex Louks, David L. Lyle, Bank, according to Paul Gronstal, posits and 7.32 per cent of total assets.
S. M. McCleery, Hugh C. McCleery and
Lewis E. Holland.
Mr. Laverty was elected president;
iou 'a G rou p J te r iin g s
Hugh McCleery, executive vice presi
The
following
are
the dates and meeting places for the eight
dent; Mr. Holland, cashier, and LourGroup Meetings of the Iowa Bankers Association to be held in
etta Leedom, assistant cashier.
May. As further information on the meetings becomes available,
including programs, all will appear in coming issues of the
Elected Office Manager
NORTHWESTERN BANKER.
Leo Brown, 36, of Dana has been
Group
Date
Meeting Place
elected assistant cashier and office
Tuesday
5
May
3
Council
Bluffs
manager of the Mallard office of the
10
Wednesday
May 4
Centerville
Palo Alto County Bank, Emmetsburg,
6
May 5
Thursday
Knoxville
according to William Zunkel, execu
8
Friday
May 6
Tipton
tive vice president.
4
May 17
Tuesday
Manchester
He will succeed William G. Beatty,
May 18
7
Wednesday
W averly
who resigned to accept a position as
3
Thursday
May 19
Mason City
cashier of the Warren County Bank
2
Friday
May 2 0
Estherville
and Trust Company at Indianola.

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Federal Reserve Bank of St. Louis

Northwestern Banker, March, 1955

Io w a N e w s

Deposits in the 96 national banks in
Iowa totaled $873,299,000 which, com
bined with deposits of the state char
tered banks, made total deposits of all
state and national banks in the state
$2,696,393,451.

T r u st O ffic e r

To Burlington Directorship
Thomas F. Gray, vice president of
Campbell Chair Company, was elected
a director of the Burlington Bank and
Trust Company, Burlington, Iowa, at
the bank’s recent annual meeting.

New Bank Building

Common Stock Increase
Common stock of the First National
Bank, Newell, Iowa, was increased re
cently from $25,000 to $50,000 by a
stock dividend.

Ag Credit School
The 10th Annual Agricultural Credit
School, jointly sponsored by Iowa
State College, Ames, and the Iowa
Bankers Association, is scheduled to
start Monday, June 13, lasting two
weeks, through June 24, according to
Robert E. Hunter, director, Earlham
Savings Bank, Earlham, and Ag Credit
School committee chairman, and L.
Milton Vander Stowe, assistant cash
ier, Security National Bank, Sioux
City, committee vice chairman. Pro
fessor H. B. Howell of Iowa State
College is in direct charge of the
school.

FBI Conferences
The Federal Bureau of Investigation
will hold law enforcement conferences
on bank robbery during April and
May, W. H. Williams, special agent in
charge of the Omaha office, said re
cently.
Nebraska conferences will be held

RICHARD C. ACKLEY is the newly ap
pointed trust officer at the Union Bank and
Trust Company, Ottumwa, as reported in
the January issue of the N orthw estern
B anker.

at Omaha, Grand Island and Scottsbluff; Iowa conferences at Sioux City,
Des Moines and Davenport.
Agent Williams said there were 517
violations of the Bank Robbery Stat
ute in 1954, against 418 the previous
year, an increase of 23.6 per cent.
He explained that it is almost im
possible for a law enforcement agency
to catch bank robbers without assist
ance from bank employees and other
citizens.

Capital Stock Increased
Capital stock was increased from
$125,000 to $500,000 recently at a spe
cial stockholders’ meeting at the Mus
catine Bank and Trust Company, Mus
catine, Iowa. Capital structure now

• The latest
equipment and
methods, plus a
friendly attitude,
are geared to be
of service to
you at any time.

KOCH
BROTHERS
GRAND AVE. AT FOURTH
Northwestern Banker, March, 7955

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Federal Reserve Bank of St. Louis

Construction of a new building to
house the Clinton National Eank is
expected to start within the next few
weeks.
Plans for the structure which, when
completed will be one of the most
modern banking institutions in this
area of the midwest, have been ap
proved by the bank’s board of direc
tors.
The new bank will be located on the
6th Avenue S. property, just west of
The Herald building.

Centerville Election Results
The annual meeting of the Center
ville National Bank, Centerville, Iowa,
was held recently, and R. F. Malmberg
was elected vice president and cashier
and W. R. Langfitt, vice president and
farm manager. All other officers re
main the same.
Mr. Malmberg has been with the
Centerville National Bank for eight
years and Mr. Langfitt five years.

Two New Directors
William B. Sayre, Ackworth, and
L. V. Van Syoc, Milo, were elected
new directors at the 36th annual Peo
ples Trust and Savings Bank stock
holders’ meeting held recently at the
bank in Indianola, Iowa.
The bank also is sponsoring a girls’
basketball team. All members of the
squad, except three, work in the bank.

Bank’ s Gift to Community

Since
1905

ÿjfc fte ;.
Äffifee#

is: Capital $500,000, surplus $400,000,
and undivided profits $208,000.
Remodeling of the building on the
west has been started and it is ex
pected that the work will be com
pleted within 90 days. A personal and
installment loan department will oc
cupy the newly-remodeled section of
the bank.

MEMBER
FDIC
FRS

The Friendly

AMERICAN TRUST & SAVINGS BANK
Dubuque, Iowa

A new meeting room for the com
munity is the latest service offered by
the Glenwood State Bank, Glenwood.
L. C. Dean, vice president, said, “We
had the extra space available in our
basement and it was really only a
question of converting it.”
The conversion consisted of walling
off and finishing in knotty pine a main
unit measuring 50 by 18 feet. Ad
joining this is a second room measur
ing 18 by 18 feet, to serve as a kitchen.
An outside entrance allows for free
use of the quarters whether the bank
is open or not. The meeting rooms
are available to local groups at no cost.
The rooms have been in almost con
stant use since completion and more
than 21 different meetings have been
booked.

FOR UNUSUAL
COOPERATION
ON YOUR
DES MOINES
TRANSACTIONS

VALLEY BANK AND TRUST COMPANY
D ES

M O IN E S

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis

Northwestern Banker, March, 1955

Io w a N e w s

R alph E a stbu rn N a m ed Chairm an of lìro u p SI
ORE than 425 bankers turned out
for the Group 11 meeting of the
Iowa Bankers Association at Bur
lington, Iowa, on Washington’s birth
day last month. The record registra
tion taxed the hotel facilities to the
fullest and was ample evidence of the
excellent program prepared by out
going group officers.
Elected to head the group for the
next two-year period were Ralph Eastburn, president of the Iowa State
Bank and Trust Company, Fairfield,
as chairman, and Larry H. Vardaman,
executive vice president, State Bank
of Wapello, as secretary. Mr. Eastburn succeeds Ed A. Ebersole, vice
president and cashier, State Central
Savings Bank, Keokuk, as chairman.
Mr. Vardaman succeeds Mr. Eastburn
as secretary.
Chairman of the nominating com
mittee was Frank Crone, president of
the National Bank of Washington.
The principal speaker from outside
the state was Herbert V. Prochnow,
vice president, First National Bank of
Chicago, who recently was appointed
head of his bank’s correspondent divi
sion. He told his audience that pros
pects for good business during the
first half of 1955 were backed up by
high spending, high savings and high
production.

Parts o f Economy

GROUP ELEVEN bankers of the Iowa
Bankers Association met in Burlington last
month. Some of those in attendance are
shown in these photos, left to right:
1. Ed Ebersole, vice president and cash
ier, State Central Savings, Keokuk, and
retiring group chairman; Ralph Eastburn,
president, Iowa State Bank and Trust,
Fairfield, new chairman, and John E. Keeline, president, Central Trust and Savings,
Cherokee, Iowa Bankers Association vice
president.
2. Larry H. Vardaman, executive vice
president and trust officer, State Bank of
Wapello, new group secretary, and Warren
Hayes, director of the same bank.
3. Mrs. F. E. Breitenstein, Gertrude
Egley, Ann Goetz, Arline Dupy and Marge
Lemon, all of State Central Savings, Keo
kuk. In foreground is Jack Rigler, assist
ant cashier, Northern Trust, Chicago.
Center is Bob Kline, and at right Les
Siems, assistant manager, bond depart
ment, both of Northern Trust. Standing
are Vern Richardson (left), manager,
Bonaparte office, and F. E. Breitenstein,
Northwestern Banker, March, 1955

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Federal Reserve Bank of St. Louis

assistant cashier, both with State Central
Savings, Keokuk.
4. R. S. Kirkpatrick, president, West
Liberty State, West Liberty.
5. Jacque C. Frost, second vice presi
dent, Chase National, New York (fore
ground), Dale C. Smith, vice president,
Central National Bank and Trust, Des
Moines; A. M. MacLaughlin of Yietli,
Duncan and Wood, Davenport; Frank A.
Johnson, senior vice president, First Trust
and Savings, Davenport, and Frank Fuchs,
vice president, First National, St, Louis.
6. Art Lindquist, vice president, Mer
chants National, Cedar Rapids; J. R. Tay
lor, Mt. Pleasant, and Gene Stephens, di
rector, Ainsworth State, Ainsworth.
7. Harold Gugeler, director: Charles
Wagner, vice president, and Paul Keller,
director, all of Danville State Savings,
Danville.
8. Willis F. Johnson, U. S. Check Book,
Omaha; F. C. Spaethe, assistant cashier,
C. R. Crawford, and J. E. Henson, cashier,
all of Louisa County National, Columbus
Junction.

To add a little sober reflection to
the optimistic views he discussed
three parts of the economy that could
possibly cloud the present bright out
look. They are: 1. The stock market,
with economists expressing some con
cern over possible speculation. 2.
Automobile production, which is now
hitting 165,000 cars per week, exclud
ing trucks, for a total estimated an
nual production of eight million cars,
while the market can absorb only
about six million. 3. Home produc
tion, which is proceeding at a pace
of 1,450,000 units per year, while fam
ilies are being formed at the rate of
600,000 per year. This means more
labor from this source will eventually
be thrown on the market when over
production ceases, unless this labor
can be diverted to construction of
schools, highways, utilities and similar
projects which must continue at a
high rate.
He said the advisory council of the
Federal Reserve Bank (he is secretary
of the council) feels that shorter ma
turities should be adopted on home
and mortgage loans, with high down
payments required. These steps would
strengthen the economy, reports the
council.

Io w a N e w s

State Bank Superintendent N. P.
Black reported on the excellent condi
tion of Iowa’s chartered state banks
which now have an all-time high de
posit total of $1,823,000,000, assets of
$2,000,000,000 and loans of $681,000,000.
He said that 21 applications for char
tering new banks were received in
1954 but only one was granted. To
date in 1955, 10 applications for new
banks have been filed but no charters
have been granted, he said.
Other speakers on the program in
cluded Frank Warner, secretary of the
Iowa Bankers Association, who gave
a most interesting report on the 1955
legislature, particularly with reference
to legislatiton in which Iowa bankers
have an interest.—End.

New Cashier
B.
K. Peterson has been elected cash
ier of the Iowa State Bank, West
Bend, Iowa, succeeding Eldon R. Zachman, who has pur
chased controlling
interest in the Se
curity State Bank
of W ells, Minne
sota. Mr. Zachman
is taking over the
active management
of the latter bank.
Mr. Peterson obt a i n e d his bank
t r ai ni ng in the
First State Bank of
Belmond and was employed as assist
ant cashier in the Andrew Savings
Bank, Andrew, from 1949 through
1953. He has been employed as a
loan officer in the personal loan de
partment of the First Security Bank
and Trust Company, Charles City,
since August, 1953.
The directors at West Bend con
tacted Mr. Peterson through the Bank
ers Service Company, Des Moines,
which company specializes in selling
interests in banks and supplying ex
perienced bank executives.

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Omaha Office
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George V. Mickelsen, Dist. Mgr.
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Russell V. Peterson, Dist. Mgr.
Call Atlantic 7190

Senior Bank Examiner
J. Harland Collinson, formerly of
Tama, has been promoted from junior
to senior bank examiner for the south
west Iowa territory. Mr. Collinson
has been with the state board of bank
examiners the past nine years, enter
ing this work after his return from
service with the armed forces over
seas. Mr. Collinson and his family
have moved from Marion to Atlantic,
Iowa.

Allerton Changes
Glen Greenlee, cashier of the Secu
rity State Bank at Allerton, Iowa, has
announced that Earl Booth, Sr., will
serve as member of the bank’s board

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Federal Reserve Bank of St. Louis

UNQ U ESTIO NED
FIN AN CIAL IN TEGRITY

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ST. PAUL TERMINAL WAREHOUSE CO.
4 2 5 E A S T 8 th S T R E E T

\ST. P A U L, M IN N E S O T A
Northwest ern Banker, March, 1955

Io w a N e w s

troller of the Bank of New York, New
York. Mr. Sheldon is chairman of the
national committee.

of directors to fill the vacancy created
by the recent death of Carl Binau,
longtime Allerton business man.
Also, Thomas Alley started last
month as assistant cashier at the
bank, Mr. Greenlee said.

Jesup Stock Sold
David Toussaint has announced that
he has sold his majority interest in

Harold C. Bryant
Harold C. Bryant, 47, assistant cash
ier of the Vinton State Bank, Vinton,
Iowa, died at his home recently after
a long illness. He was a victim of
cancer.

To Indianola
W.
H. Brenton, president of the War
ren County Bank and Trust Company,
Indianola, Iowa, has announced that
William G. Beatty has been elected
cashier of the bank, to succeed Clark
Mahr, who has been elected executive
vice president. Mr. Mahr succeeds S.
M. Hogshead, who resigned to accept
a position with the City National Bank
and Trust Company of Chicago.
Mr. Beatty went to Indianola from
the Palo Alto County State Bank,
Emmetsburg.

After 2 8 Years
Mathias Reiff resigned as a member
of the board at a recent meeting of
the board of directors of the Early
Savings Bank, Early, Iowa. He had
been a member of the board since
1927, when the bank was organized.
He will be succeeded by Paul L. Dick.

To National Post
Ralph Storrs, trust officer and as
sistant cashier at the City National
Bank, Council Bluffs, Iowa, was ap
pointed a member of the 11-man ac
counting commission of the National
Association of Bank Auditors and
Comptrollers.
Mr. Storrs was appointed to the
commission by G. L. Sheldon, comp

ceeded him as president and active
manager of the bank. Mr. Toussaint
said the sale was negotiated by Bank
ers Service Company of Des Moines,
Iowa.
The bank’s published statement for
December 31, 1954, shows capital ac
counts of $220,637 and deposits of
$2,225,956. Under Mr. Toussaint’s di
rection the bank recently completed
extensive remodeling operations.

G. B. Baker
C. R .
Buys

F a rm ers

DUROE

S ta te

B ank, Jesup,

Iow a

the Farmers State Bank of Jesup,
Iowa, to C. R. Duroe of Jefferson,
Iowa, and that Mr. Duroe has suc

G. B. Baker, 83, prominent Ottumwa,
Iowa, merchant and banker, died re
cently in an Ottumwa hospital. He
was a director of the Farmers and
Merchants Savings Bank.

W , E often decide to do business with one par
ticular firm because it has a real, personal interest
in our problems.
That’s the reason so many banks choose the 1st
National to handle their correspondent banking.
Of course, the 1st National offers many other ad
vantages— years of experience, complete, efficient
service, convenient location at the hub of a 4-state
area — but the personal interest we take in the
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new friends.
Our personal interest in serving can result in a
better correspondent banking arrangement for you.

THE PERSONAL TOUCH

JO E T. G R A N T
P r e s id e n t

E R N E ST A. JO H N SO N
A sst. V . P res.

H AR O LD V. B U LL
S e n io r V ic e P re s.

E R N E S T A. K E N N Y , JR .
A sst. V ic e P res.

W IL L IA M L. T E M P L E
V ic e P res.
E A R L E. SN E L L
V ic e P re s.
H AROLD
C a s h ie r

EDW ARD V. HOFFM AN
A sst. V ic e P res.

G E O R G E D. V IN S O N
A s s t . C a s h ie r
M E R LE H. JO H N SO N
T r u s t O ff ic e r

ir s t
N a t io n a l B a n k

Northwestern Banker, March, 1955

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Federal Reserve Bank of St. Louis

H. S T R IF E R T ,

HOM ER V. G ARRETSON
A s s t . C a s h ie r

M EM BER

FEDERAL

D EPO SIT

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Io w a N e w s

•/. .4.

Roluver
T o Read
Group O n e

ULIUS A. ROHWER, president of
the Farmers State Bank, Schles
wig, Iowa, was elected chairman of
Group 1 of the Iowa Bankers Asso
ciation at the group’s annual meeting
held last month in the municipal au
ditorium in Sioux City. John Porter,
president of the Lyon County State
Bank, Rock Rapids, was named secre
tary.
About 800 bankers and their wives
registered for the meeting and heard
a number of outstanding speakers,
including Dr. J. Carroll Bottum, as
sistant chief of the department of
agricultural economics at Purdue Uni
versity; George W. Cloos, economist
for the Federal Reserve System; N. P.

Black, superintendent of banking; By
ron L. McKee, president of the asso
ciation, and Frank Warner, secretary
of the association.
Farm Oullook

Dr. Bottum gave his views on the
future agricultural outlook, mention
ing that there should be a slightly
better demand for farm products in
1955, although prices will be slightly
less than last year.
Taking a “long run” look at farming,
Dr. Bottum said he expects prices to
continue “at competitive levels” at
sometimes above and at other times
below the present, but with an aver
age below 100 per cent of parity, “re-

BANKERS OF GROUP ONE had their day last month when
they met in Sioux City’s new auditorium for their annual meet
ing! A number of those attending the business session were
snapped by the N orthw estern B anker camera, and they are
pictured above, left to right in each photo:
1. Fred D. Cummings, vice president, Drovers National Bank,
Chicago; W. M. Goodyear, vice president, Lake City State Bank,
Lake City; Robert M. Moehn, vice president, Commercial Sav
ings Bank, Carroll, and R. K. Popple, vice president, Bankers
Trust Company, Des Moines.
2. Lewis P. Bolton, manager of transit department, Toy Na
tional Bank, Sioux City; W. L. Karlson, cashier, Farmers Sav
ings Bank, Pierson; Stanley Evans, vice president, Live Stock
National Bank, Sioux City, and J. W. Cravens, president, San
born Savings Bank, Sanborn.

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Federal Reserve Bank of St. Louis

NEW OFFICERS of Group 1 are, left to
right, Chairman Julius Rohwer, president
of the Farmers State Bank, Schleswig, and
Secretary John J. Porter, president of
Lyon County State Bank, Rock Rapids.

gardless of the government farm pro
gram.”
Barring war, he declared, the effi
cient farmer will get “reasonably good
return” on his investment and work.
Mr. Cloos, in the second major ad
dress of the afternoon, stated that the
immediate statistical outlook in regard
to American industry is good. In a

3. Joe Grant, president of the First National Bank, S'oux City
and president of the Sioux City Clearing House; H. P. Knuth,
president of the Holstein State Bank, Holstein, and E. D.
Mickelson, president of the First State Bank, Battle Creek.
4. J. William Van Dyke, vice president, Toy National Bank,
Sioux City; Elmer J. Knebel, vice president, and Lloyd A.
Tymeson, cashier, both of the Commercial Trust & Savings Bank,
Storm Lake.
5. E. C. Spengler, president, Ocheyedan Savings Bank,
Ocheyedan, and Carl Fredricksen, president, Live Stock Na
tional Bank, Sioux City.
6. C. H. Walcott, vice president of the Security National
Bank, Sioux City, and Tom Collins, publicity director, City Na
tional Bank & Trust Company, Kansas City, who was dinner
speaker at the annual banquet.
Northwest ern Banker, March, 7955

Iowa N e w s

chart talk, he traced trends of the
economy in regard to agriculture, and
then compared those tendencies to
trends in other industries.
Tom Collins, publicity director of
the National Bank and Trust Com
pany of Kansas City, Missouri, and a
popular humorist, was banquet speak
er.—End.

C. A. Frasier
C. A. Frasier, 68, former president
of the Grinnell State Bank, Grinnell,
Iowa, died last month, only one month
after retiring and selling his interest
in the bank to F. A. Jones, now presi
dent of the bank.

Clifford L. Niles
Clifford L. Niles, 76, business man
and Republican party leader of wide
acquaintance over the state, died last
month in Anamosa, Iowa.
He was a director of the Citizens
Savings Bank in Anamosa.

New President
D. J. Schnittjer was elected presi
dent of the Delhi Savings Bank, Delhi,
Iowa, at the annual election of officers
last month at the bank. Other offi
cers elected are: H. L. Stone, vice
president; A. A. Schmidt, cashier; E.
G. Schmidt and A. J. Schmidt, assist
ant cashiers, and Betty Guetzko, book
keeper.

Bank Buildings Sold
The Union Bank & Trust Company,
Ottumwa, Iowa, has sold both its
buildings on East Second Street under
contract for transfer when the bank

is moved into its new building to be
constructed at the corner of Market
and Third Streets.

‘ "Outstanding Boss”
Mortimer Goodwin, president of Un
ion Story Trust and Savings Bank,
Ames, Iowa, recently received the Out
standing Boss award for 1954 from
Don Jans, employee at the bank. The
award was presented at the annual
JayCee awards banquet at Memorial
Union, Iowa State University.

Free Personalized Checks
To celebrate its 25th birthday the
First State Bank in Brunsville, Iowa,
now headed by Mrs. Katherine Dickman, who has been associated with the
institution throughout most of its his
tory, announced it was giving all its
regular customers 200 personalized
checks free, plus a checkbook holder
wtih the customer’s name printed on
it in gold.
The bank’s total assets have climbed
from $174,187 at the end of 1929 to
$1,000,305 at the end of 1954.

Jefferson State’ s Open House
More than 1,500 people accepted the
invitation of the Jefferson State Bank,
Jefferson, Iowa, recently to attend the
bank’s open house. The open house
was held because of the bank’s recent
remodeling program.
Chief points of interest were the
new vault, the drive-in window and
the new check imprinting equipment.
The bank took orders for and im
printed 500 personalized check pads
during the day.

SAFE INVENTORY LOANS
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WAREHOUSE RECEIPTS
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0206

DigitizedNorthwestern
for FRASER Banker, March, 1955
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

DIVISION OFFICES
Des Moines, Iowa — Phone 3-4465
Kansas City, Kansas — Phone DRexel 6518
Washington C. H., Ohio — 4-7591
Angola, Indiana — Phone 193-L
San Antonio, Texas — Capital 7317

Le Mars Changes
Gordon L. Mennen was advanced
from executive vice president to presi
dent of the Le Mars Savings Bank in
Le Mars, Iowa, at the annual meeting
of directors as reported last month by
t h e N o r t h w e st e r n
B a n k e r . He is also

pr e s i de nt of the
F a r m e r s State
Bank at Merrill.
The Le Mars Sav
ings Bank has be
gun a complete re
modeling program,
including a n e w
front, new fixtures
for the entire lobby
G. L . M E N N E N
and a new book
keeping room in an air conditioned
room in the basement.

Bank Women to Meet
The second meeting of the Iowa
Group of the Association of Bank
Women is to be held in Des Moines,
April 2 and 3 at the Hotel Savery.
Registration will be held on the Mez
zanine Floor of the hotel at 5:30 p. m.
on April 2. A reception and banquet
will follow at 6:00 in the Terrace
Room. W. H. Brenton, president of
the State Bank of Des Moines, past
president of the American Bankers
Association and the Iowa Bankers
Association, will be the guest speaker.
His topic will be “Opportunities Un
limited.”
The meeting will reconvene at 10:00
a. m. on Sunday morning for a brunch,
followed by presentation of the Eisen
hower Prayer Award by the State Sav
ings Bond department. Miss Virginia
Rehme, national vice president of the
National Association of Bank Women
and savings bond chairman for the
NABW, will be present and address
the group at this morning session.
Any women executives in Iowa in
terested in attending the meeting and
who are not members of the National
Association of Bank Women, may ad
dress their inquiries regarding the
meeting and membership to the Iowa
s e c r e t a r y , Miss Margaret Hendry,
Home Trust and Savings Bank, Osage,
Iowa.

ACO RN

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DEPARTMENT O F B A N K S AND B A N K ER S
Otto H. Preus
V ic e P re s id e n t

John D. Cleary
A s s i s t a n t C a sh ier

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis

s EVê '
Northwestern Banker, March, 1955

96
the last part of last month on a four
weeks vacation in Florida. Following
his vacation, much of which was spent
at the Mardi Gras in New Orleans,
Louisiana, Scott C. Pidgeon, president
of the bank, has returned to Des
Moines.

Wps Moines News

Three officers of the lowa-Des
Moines National Bank attended the
National Trust Conference in New
York City last month. They were
C. W. Aurand, bank president; Clyde
H. Doolittle, senior vice president, and
C. Ream Daughrity, trust officer.
=t=

Mr. and Mrs. Edward Burehette are

C. WINDER, vice president and
Three nights
H
• cashier of the Central National V.F.W. Club in
Bank and Trust Company, Des Moines,

filed as a candidate last month for
the office of school board treasurer at
the election to be held this month.
F. C. Atkins, vice president and cash
ier of the Bankers Trust Company,
who has held the office for the last
four years, said he is not a candidate
for re-election.
“ The five banks which are members
of the Des Moines Clearing House pass
this job around and each bank selects
its man, who usually is re-elected for
a second term,” explained Mr. Atkins.
*

later, also at the
Des Moines, A.I.B.
members and their husbands, wives
and guests attended the annual A.I.B.
Valentine dinner-dance.
* * *
The Rev. J. Hamilton Dawson, 75,
retired Des Moines minister and vice
president of the Iowa State Bank, died
recently at Iowa Lutheran Hospital.
He returned to Des Moines in 1942
after a three-year pastorate in New
York to head the public relations de
partment of the Iowa State Bank. In
1943 he became a vice president of the
bank.

=1«

Dr. Arthur A. Smith, vice president

and economist for the First National
Bank of Dallas, Texas, addressed the
opening meeting of Drake University’s
third annual executive development
program early this month.
Mr. Smith discussed “ The Problem
of Internal Markets.” Theme of the
1955 program was “ Managerial Chal
lenges of Today and Tomorrow.”
*
*
Paul Huelback, mortgage loan de
partment, Bankers Trust Company,
won the new bowling ball offered as
main prize at the American Institute
of Banking men’s meeting held last
month at the V.F.W. Club, Des Moines.
Many other prizes were awarded
shortly after the fried chicken buffet
supper.

The Central Iowa Conference of the
National Association of Bank Auditors
and Comptrollers will conduct a oneday clinic at the Hotel Fort Des
Moines, Des Moines, on April 21.
Warren Garst, executive vice presi
dent of the Home State Bank of Jef
ferson, Iowa, chairman of the commit
tee planning the clinic, says there will
be two sessions. The morning session
will cover banking operations, while
the afternoon session is devoted to
bank auditing as pertains to smaller
country banks. The meeting will be
gin at 9:00 a. m. and will be adjourned
at 4:00 p. m.
* * *
James W. Hubbell, chairman of the
board of directors of the Bankers
Trust Company, Des Moines, departed

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Roy W . Leriche
Harry B. Graefe
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Laurence C. Morris

FIRST OF IOWA CORPORATION
2 00 Equitable Building

Northwestern
Banker, March, 1955

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Federal Reserve Bank of St. Louis

Des Moines 9, Iowa
Phone 4-7 15 0

spending their vacation in Florida.
Mr. Burehette is chairman of the
board of the Valley Bank and Trust
Company, Des Moines.
5|!

Sji

S(C

J. R. Astley, vice president of the

Valley Bank and Trust Company, Des
Moines, last month attended the meet
ing of mortgage bankers in Chicago.
—End.

National City Merger
Howard C. Sheperd, chairman of the
board of The National City Bank of
New York, and Alexander C. Nagle,
president of the First National Bank
of the City of New York, announced
early this month that a plan to merge
the two banks had been agreed upon
by the respective boards of directors,
subject to approval of the shareholders
of each bank on March 30 and of the
Comptroller of the Currency.
Under the merger plan the National
City Bank will pay to the shareholders
of the First National Bank $550 per
share in cash for its capital stock, a
total of $165,000,000 for the 300,000
shares outstanding. No change will
be made in the capital stock of Na
tional City, which consists of 10,000,000
shares of $20 par value, a total of $200,000,000, or in its surplus, which is
$300,000,000. To reflect the merger, the
name of the National City Bank will
become The First National City Bank
of New York, by amendment of its
charter.
The number of directors of First
National City Bank will be 25, includ
ing 20 members of National City’s
board and five from the board of First
National. The new members of the
board will be: George F. Baker, Jr.,
Percy Chubb II, Edward S. Moore,
Jr., Alexander C. Nagle and William
C. Stolk.
All members of the senior manage
ment of National City will continue in
their present positions. Mr. Nagle will
join the group as chairman of the ex
ecutive committee and Grant Keehn,
executive vice president of First Na
tional, will hold the same title in First
National City.

Iowa News
Bond Men Elect
Blair A. Phillips, Jr., president of
White-Phillips Company, Chicago, has
been named 1955 president of The Exempters, Chicago organization of mu
nicipal bond men.
Mr. Phillips succeeds Robert E.
Simonds, Jr., of Halsey, Stuart & Com
pany, Inc.

New Tulsa Director
R. W. McDowell, president of the
Mid-Continent Petroleum Company,
has been elected a member of the
board of directors of the First National
Bank & Trust Company, Tulsa, Okla
homa. Mr. McDowell becomes the 25th
member of the bank’s board.

New' Proof Manual
A comprehensive study of commer
cial proof department operations and
an explanation of basic principles in
volved in its successful operation are
the subjects covered in a new 121 page
manual entitled Commercial Proof De
partment Operations published by The
National Association of Bank Auditors
and Comptrollers, according to an an
nouncement by the association’s presi
dent, Robert H. Shepler, who is vice
president and cashier, The Denver Na
tional Bank, Denver, Colorado.

MERCHANTS
MUTUAL

BONDING
COMPANY

Stool.- IHrith’tnls

IIn p

The following changes took place recently in the status of Iowa State Char
tered Banks:
To
From
Bank
Location
$ 35,000
25,000
Alton Savings Bank, Alton...........................$$ 25,000
150,000
Atlantic State Bank, Atlantic....................... 100,000
30,000
Farmers Savings Bank, Frederika................. 20,000
50,000
State Savings Bank, Cantril........................... 25,000
45,000
Security Savings Bank, Ireton........................ 30,000
30,000
50,000
Livermore State Eank, Livermore.............. 25,000
400,000*
Monticello State Bank, Monticello.............. 400,000
50,000
New Albin Savings Bank, New Albin........... 25,000
50,000
Sheffield Savings Bank, Sheffield.................. 25,000
125,000
Waukon State Bank, Waukon....................... 100,000
100,000
Citizens State Bank, W yoming........................ 50,000
50,000
i common stock dividend for
^Retired all preferred stock ($50,000) and is
like amount.

DROVERS LOCATION
MAKES IMMEDIATE CREDIT
POSSIBLE ON LIVESTOCK PROCEEDS

The D rovers N ational Bank* is located at
Chicago’s Union Stock Yards. We give our corre
spondents immediate credit for proceeds of live
stock sold on the Chicago market by their farm
customers. Let us help speed up the availability
of your funds.
We invite your inquiry.
*The Drovers National Bank is a direct member of the Chicago Clearing
House Association and the Federal Reserve System. It has provided
continuous service to correspondent banks since February 12, 1883.

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.
We are proud of our three hundred
bank agents in Iowa.
To be the exclusive representative of
this company is an asset to your bank.

^D ro ve rs Banks
Drovers National Bank and Drovers Trust & Savings Bank

UNION STOCK YARDS, CHICAGO 9, ILLINOIS
E. H. WARNER

Members, Federal Deposit Insurance Corporation

President and Manager

W. W . W ARNER
Secretary-Treasurer

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Federal Reserve Bank of St. Louis

COMBINED RESOURCES OVER ONE HUNDRED MILLION DOLLARS
Nort hwest ern Banker, March, 1955

98
More North Dakota News
Mr. Wallander joined the banking
staff in 1915 as a bookkeeper and was
named president of the bank at its
recent annual meeting.

Park River Activity
Gordon S. Larson, cashier of the
First State Bank, Park River, North
Dakota, for several years, has been
elected vice president. Robert Bork
has succeeded Mr. Larson as cashier.

tions were: Dorothy Falk to auditor,
C. A. Thorkelson to cashier, K. B.
Cummings to manager of the install
ment loan department, and Robert
Miller to assistant manager of the in
stallment loan department.
The capital structure of the bank
was increased $50,000 by adding to the
surplus account increasing the surplus
to $250,000 and bringing the capital
structure up to approximately $550,000.

Co-Sponsor Contest

The bankers of Grant county, North
Dakota, plan to help sponsor a soil
E.
W. Hauser, vice president and and water conservation scrapbook
cashier, First James River National contest for the school children of the
county. Other sponsors are the super
Bank, Jamestown, North Dakota, was
promoted to first vice president at the intendent of schools and the Grant
recent annual meeting. Other promo- County Soil Conservation District.
The banks of the county will offer
cash awards of $20 for first prize, $10
for second prize, $5 for third prize, and
five honorable mention prizes of $2
each.

Jamestown Changes

Named Chairman
Edward L. Olson, cashier, First Na
tional Bank, Grand Forks, North Da
kota, has been appointed chairman of
the industrial committee of the $198,000 Y.W.C.A. Community Center com
pletion campaign in Grand Forks.

•

Excellent
convention
and meeting roo/nj*
facilities, seating
from 25 to 1000
•
Two Cocktail
Lounges—
The Omar and
The Alcove.
•

Coffee Shop and
Penguin Dining Room.
•

Storage Garage next door,
24 hour service.
350 outside rooms with bath.
H. Grady Manning,

Founder
phone— Har. 6040
¿TT

Valley City President
Harry Lundholm, cashier, First Na
tional Bank, Valley City, North Da
kota, has been elected president and
executive officer of the bank.
Mr. Lundholm began his banking
career at First National in Minneap
olis in July, 1930.
■Oldest in Des Moines*

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Nort
hwest ern Banker, March, 1955
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Paul E. R. Abrahamson and Edward
Traynor left the board of directors of
the Ramsey County National Bank,
Devils Lake, North Dakota, recently
when the number of directors was re
duced from seven to five.

$ 5 0 ,0 0 0 Increase
The National Bank of Jamestown,
North Dakota, has increased its sur
plus account by $50,000 to give it a
total surplus account of $250,000, ac
cording to an announcement made fol
lowing the annual meeting of the
stockholders.
The bank’s capital remains at $100,000. Year end deposits amounted to
$7,317,000, a slight increase over 1953,
according to officials.

Lisbon Surplus Change
Surplus of the Farmers State Bank,
Lisbon, North Dakota, was increased
$10,000 at the recent annual meeting.
All officers and directors were re
elected.

Retires at Northwood
Alvin A. Halvorson, vice president,
Northwood State Bank, Northwood,
North Dakota, has retired after 49
years in the banking business in
Northwood. He was vice president of
the Citizens National Bank from 1925
until that bank was absorbed by the
Northwood State Bank in 1931, at
which time he became the vice presi
dent of the latter institution.

Named Vice President
Edward F. Spencer was elected vice
president of the First National Bank,
Bismarck, North Dakota, at the bank’s
recent annual meeting.

Remodeling in Bowman
Remodeling of the First National
Bank, Bowman, North Dakota, was
started recently and the bank’s busi
ness is being conducted in the former
postoffice room.

Leaves Mandan Bank
Resignation of John Daschle as as
sistant cashier of the First National
Bank, Mandan, North Dakota, was an
nounced by J. R. Madsen, bank presi
dent.

More South Dakota News

P ay-A s-Y ou-C heck

U n it e d

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No Minimum
Balance
Check Plan
ook

C o m pa n y
OMAHA

Surplus Doubled
The surplus of the Commercial
Trust and Savings Bank, Mitchell,
South Dakota, was raised from $100,000 to $200,000 at the recent annual
meeting of the board of directors and
stockholders.

99
In other action at the meeting Glen
Ritterbush was elected assistant cash
ier, a job he will hold in addition to
that of farm service director.

To Rapid City Board
Eugene Pester, vice president and
trust officer, Rapid City National Bank
and Rapid City Trust Company, Rapid
City, South Dakota, has been elected
a director of the bank.

nounced at a recent meeting of the
association’s executive c o u n c i l in
Great Falls, Montana. About 30 bank
ers were present and set the following
dates and places for the association’s
group meetings:
Group 6, May 6, Anaconda. Group
7—May 7, Bozeman. Group 2—May 9,
Glendive. Group 4—May 10, Glasgow.
Group 1—May 11, Havre. Group 5—
May 12, Great Falls. Group 3—May
14, Libby.

Board Number Increased

Helena Changes

Expansion of the board of directors
of the Aberdeen National Bank, Aber
deen, South Dakota, to include two
new members was announced recently
by President L. H. Ickler, Jr., follow
ing the annual stockholders’ meeting.
The new directors are Olwin Ackley,
president and co-owner of the Olwin
Angell Store, and Henry J. Schmitt,
editor and publisher of the AmericanNews, and president of radio station
KSDN.

Fred Heinecke, president, First Na
tional Bank and Trust Company, Hel
ena, Montana, has announced the fol
lowing changes at the bank: Nels
Turnquist was advanced from assist
ant cashier to assistant vice president;
Harold Ormseth, an examiner for the
First Service Corporation the past sev
en years, to assistant vice president;
J. A. Brooks, manager, consumer fi
nance department, to assistant cashier;
Carl Wiest to assistant cashier, and
Burton Felder, cashier, to continue as
cashier with the new position as as
sistant trust officer.

K. L. Syzmanski
K. L. Syzmanski, 66, president,
Farmers State Bank, Tabor, South
Dakota, died of a heart attack suffered
recently at his home.

Two Advance at Glasgow
C. R. Tvedt, cashier, was promoted
to vice president and Leroy Whittle,
assistant cashier, was advanced to
cashier of the Farmers-Stockgrowers
Bank, Glasgow, Montana.

Red Lodge Changes
Joe Bailey was promoted from cash
ier to executive vice president, United
States National Bank, Red Lodge, Mon
tana, at the recent annual meeting at
that bank. William R. Larkin, Jr., was
named cashier.
R. B. Zachary was elected executive
vice president at the recent annual
meeting at the Meyer and Chapman
State Bank, Red Lodge, Montana.

<R&adi¿-

9 £ iu
Advances to Chairman
Dr. L. R. Packard was promoted
from president, Whitehall State Bank,

More Montana News

POLKS

fiviecùntf

MBA President Elected
L. A. Christiansen, owner and pres
ident, Bank of Glacier County, Cut
Bank, Montana, has been elected presi
dent of the Montana Bankers Associa
tion, succeeding for the remainder of
the year, J. F. Kumpf of Conrad, who
died recently.
Mr. Christiansen’s election was an-

Whitehall, Montana, to chairman of
the board at the bank’s recent annual
meeting. A. W. Robert was advanced
from vice president to president and
Wilbur Manley and Marian Poff were
named assistant cashiers.

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Nort hwest ern Banker, March, 1955

100
I

W A N T ADS

Rates 20 cents per word per
insertion. Minimum: 10 words.
NORTHWESTERN BANKER
306 15th St. Des Moines. Iowa

i \ iii:\

I n t e r -S t a t e N a tio n a l B a n k —
K a n s a s C i t y .......................................................... 80
I o w a -D e s M o in e s N a tio n a l B a n k ................104
Io w a L ith o g r a p h in g C o m p a n y ..................... 99
Io w a M u tu a l T o rn a d o In s u ra n c e A s s n .. 56
I r v in g T r u s t C o m p a n y ...................................... 11

A O V K IIT IS F IIS
M AR CH, 1955

FOR S A L E
Diebold Bank Vault Door
Diebold N ests guard key type safety de
posit boxes
Diebold Money chests
2 recond. Brandt money changers
1 Johnson Lightning money changers
1 Standard Johnson money counter
1 Abbott money counter
2 Cummins check cancelling machines
2 late model Todd & Paym aster check
writers
Hand & electric addressograph m a
chines
Hand & electric graphoytes
Steel Kardex cabinets for card size
3x5 and 4x6
Burroughs 8-col. portable adding m a
chine
Victor 8 col. add & subtract machine
C. A . Doyle
316 Gibson Street
Eau Claire, Wisconsin
W ill pay half-price for mutilated U. S.
coins and good Canadian coins. Also will
pay 5 cents each for used medium-sized
and large cloth money bags. Ship ex
press collect. Please ship at least $10.
Perhaps you can get more from vending
machine operators or city parking m et
ers. Texas Costume Jewelry Company,
501 Hemphill St., Fort W orth, Texas.
SALESM AN W ANTED
Are you now calling on banks? If so,
present the advertising mat series, “ The
Story of Banking,” to your banker con
tacts. Experts think the series finest
they have seen. Excellent sales. High
commission. W rite Dick Fowler & A s
sociates, Advertising, Zook Bldg., 431 W .
Colfax, Denver, Colo.
IN V E S T IG A T IO N S
31 Y ea r’s Experience; Licensed— Bonded.
Phones: 3-6344; N igh ts: 9-0140. Oper
ators Available— Day or Night. National
A gency
Connections.
SH O AFSTALL
D E T E C T IV E S E R V IC E Member, Allied
Finance Adjusters 529 Flynn Bldg. Des
Moines, Iowa
S IT U A T IO N W A N T E D : Young man
31 years of age interested in going into
partnership on controlling interest in a
bank.
W rite KD O c /o Northwestern
Banker, 306 15th Street, Des Moines 9,
Iowa.

Northwestern
Banker, March, 1955

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

.1
J a e g e r M a n u fa c tu r in g C o m p a n y ................. 26

A c o rn P r in tin g C o m p a n y ................................
A llie d M u tu a l C a s u a lty C o m p a n y ............
A m e r ic a n N a tio n a l B a n k and T r u s t
C o m p a n y — C h ic a g o .......................................
A m e r ic a n T r u s t and S a v in g s B a n k —
D u b u q u e ...............................................................

94
62
36
88

44
82
88

B a n k o f A m e r ic a ................................................... 25
B a n k o f M o n t r e a l................................................. 70
B a n k e r s S e c u rity L ife In su ra n c e
S o c ie ty .................................................................... 62
B a n k e r s S e rv ice C o m p a n y , In c .......8 5 ,1 0 0
B a n k e r s T r u s t C o m p a n y — D e s M o in e s . . 86
B a n k e r s T r u s t C o m p a n y — N e w Y o r k . . . 38
B a n k s, W ill ia m H ., W a r e h o u s e C o.......... 94
B e c k e r and C o w n ie , In c .................................. 46
B eh , C a rle to n D ., C o m p a n y ........................... 42
B e y e r -R u e ffe l an d C o m p a n y ....................... 46
B u r r o u g h s C o rp o r a tio n , T h e ....................... 31
C
C e n tra l B a n k and T r u s t C o m p a n y — •
D enver
..................................................................
C e n tra l N a tio n a l B a n k and T r u s t
C o m p a n y — D e s M o i n e s .......................... .
C e n tr a l R e p u b lic C o m p a n y .........................
C e n tra l S ta te s H e a lth an d A c c id e n t
A s s o c ia tio n
........................................................
C e n tra l S ta te s M u tu a l In su ra n c e
........................................................
A s s o c ia tio n
C h a se N a tio n a l B a n k ........................................
C h r istm a s C lub , a C o r p o r a tio n ..................
C h ile s -S c h u tz C o m p a n y .................................
C ity N a tio n a l B a n k and T r u s t C o m p a n y
— C h ic a g o .............................................................
C ity N a tio n a l B a n k and T r u s t C o m p a n y
— K a n s a s C i t y ..................................................
C o lo ra d o In s u ra n c e C o m p a n y ......................
C o n tin e n ta l H o te l ..............................................
C o n tin e n ta l-I llin o is N a tio n a l B a n k and
T r u s t C o m p a n y ...............................................
C o n tin e n ta l N a tio n a l B a n k — L i n c o l n ...

K
K a lm a n an d C o m p a n y .........................................
K ir k p a t r i c k -P e t t is C o m p a n y ........................
K o c h B r o th e r s .......................................................

83
14
44

L a M o n te , G e o rg e and S o n ................................
L ee P la s tic M a n u fa c tu r in g C o m p a n y . . .
L e F e b u r e C o rp o r a tio n .....................................
L iv e S to c k N a tio n a l B a n k — C h ic a g o . . . .
L iv e S to c k N a tio n a l B a n k — S io u x C ity .

3
30
71
10
72

M a rq u e tte N a tio n a l B a n k ........................ 95
M e rc h a n ts M u tu a l B o n d in g C o m p a n y .. 97
2
M e rc h a n ts N a tio n a l B a n k .......................
M id la n d N a tio n a l B a n k ............................... 66
M in n e a p o lis -M o lin e P o w e r Im p le m e n t
C o m p a n y ............................................................... 69
M in n e s o ta C o m m e rc ia l M e n ’ s A s s n ... 67
M o r r is s e y and C o m p a n y ............................. 45
M o s le r S a fe C o m p a n y ............................... 52-53
M u tu a l F ir e and A u to m o b ile In su ra n c e
C o m p a n y ............................................................... 60

61
N

99
16
37
85

N a tio n a l C a sh R e g is t e r C o m p a n y ....... 27
N a tio n a l E s ta t e P la n n in g I n s t i t u t e . . . . 33
N e w h o u s e P a p e r C o m p a n y ........................ 48
N o r th e rn T r u s t C o m p a n y .......................... 49

28
32
58
98
35
82

O
O ld R e p u b lic C re d it L ife In s u ra n c e Co. 63
O m ah a N a tio n a l B a n k ................................. 79
P

P o lk , R . L ., an d C o m p a n y ........................

I>
D a v e n p o rt, P. E ., an d C o m p a n y ..........82, 100
D e L u x e C h ec k P rin te rs , In c .......................... 34
D e s M oin e s S a v in g s an d L o a n A s s o c i
a tio n , T h e ............................................................. 98
D ie b o ld , In c ................................................................ 103
D o a n e A g r ic u lt u r a l S e r v ic e ........................... 50
D o u g la s -G u a r d ia n W a r e h o u s e C o r p .. . . 51
D r o v e r s N a tio n a l B a n k ..................................... 97
E

E m p lo y e r s M u tu a l C a s u a lty C o m p a n y . . 57

F
F a ir m a n , C h as. G., and S on s, In c ..............
F a r m e r s M u tu a l H a il In s u ra n c e C o m
p a n y o f I o w a ......................................................
F ir s t o f Io w a C o r p o r a tio n .............................
F ir s t N a tio n a l B a n k — C h ic a g o ....................
F ir s t N a tio n a l B a n k — D e n v e r ....................
F ir s t N a tio n a l B a n k — L i n c o l n ....................
F ir s t N a tio n a l B a n k — O m a h a ......................
F ir s t N a tio n a l B a n k — S io u x C i t y ............
F ir s t T r u s t C o m p a n y o f L in c o l n ............

6
59
96
9
74
84
85
92
45

U
U n ite d S ta te s C h eck B o o k C o m p a n y ...
U n ite d S ta te s N a tio n a l B a n k — O m a h a ..

98
76

V
89
48

II
H a n o v e r B a n k , T h e ............................................
H o r n b lo w e r and W e e k s ..................................
H u m m e r, W a y n e , an d C o m p a n y ...............

St. P a u l-M e r c u r y In d e m n ity C o m p a n y . . 60
St. P a u l T e r m in a l W a r e h o u s e C o............ 91
S c a rb o r o u g h an d C o m p a n y ................ 5 6 ,8 2 ,9 9
S h a w -M c D e r m o tt and C o m p a n y ................. 46
S m ith , J a m e s L ., C o m p a n y ............................. 30
S m ith , P o lia n & C o m p a n y ............................. 80
S tife l, N ic o la u s & Co., In c ............................. 43
S to c k Y a r d s N a tio n a l B a n k — O m a h a . .. 81

V a lle y B a n k and T r u s t C o m p a n y ............
V a lle y N a tio n a l B a n k — P h o e n ix ...............

G u a r a n ty T r u s t C o m p a n y .............................

K
R e c o r d a k C o rp o r a tio n ......................................4-5
R ie g e r , C. J ........................................................... 66
R o y a l B a n k o f C a n a d a ...............................
8

64
42
42

W a lt e r s , C h a rle s E ., C o m p a n y .................... 84
W e s s c o P ro d u c ts ................................................. 30
W e s t e r n M u tu a l In s u ra n c e C o m p a n y .. 54
W h it e -P h illi p s C o m p a n y , In c ...................... 45

’~

101

Tough Bird
They are telling this one in New
York.
An Englishman walked into an ani
mal shop in London and asked for a
parrot.
“Why, yes,” said the shopkeeper.
“ Here’s a magnificent bird.”
“How much?” asked the English
man.
“Fifty pounds,” said the shopkeeper.
“ That’s ridiculous,” said the English
man.
“ But he speaks seven languages,”
explained the shopkeeper.
“ I don’t care what he speaks,” re
plied the Englishman. “ Is he tender?”
What Else
A mother, testifying on behalf of
her son, swore that he “worked on a
farm ever since he was born.”
Triumphantly the opposing lawyer
leaned over to her and thundered,
“You tell this court that your son
worked on a farm ever since he was
born?”
“ I do.”
“What did he do the first year?”
“He milked.”
No Backtalk
Two men were discussing their
home life. “ Honestly, now, who is
really boss at your house?” asked the
one.
“Well, naturally,” admitted the other
slowly, “ Mary takes complete charge
of the children, the servants, the dog
and cat, and the canary, but I can say
just about anything I please to the
goldfish.”
/ Confess
A conductor was driven crazy at re
hearsals because at least one member
of the orchestra was always missing.
After the last rehearsal he tapped his
baton for attention and said, bitterly,
“ I want to thank the first violin pub
licly for being the only man in the
orchestra who had the decency to at
tend every rehearsal.”
The first violin hung his head and
looked sheepish. “ It seemed the least
I could do,” he said in a deprecating
tone. “You see, I don’t expect to show
up for the concert tonight.”

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Politics
Old Lady (to little boy smoking a
cigarette): You had better stop doing
that, otherwise you’ll never become
president.
Little Boy: Oh, that’s all right, lady.
I’m a Republican anyway.
Battery Mates
A young medical lieutenant who
walked past the psychiatric ward each
morning and watched one of the in
mates go through the motions of wind
ing up and pitching an imaginary ball,
was finally asked by one of his friends
why he stopped daily and watched the
screwball go through his act.
“Well,” he answered, “if things keep
going the way they are, I’ll be in there
some day catching for that guy, and I
wan’t to get on to his curves.”

C O N V E N T IO N S
March 21-23, ABA Instalment Credit
Conference, Jefferson Hotel, St.
Louis, Missouri.
March 24-26, Independent Bankers
Association, Annual Convention,
New Willard and Washington
Hotels, Washington, D. C.
April 18-20, Associates of Reserve
City Bankers, El Mirador, Palm
Springs, California.
April 18-22, Nebraska Group Meet
ings.
April 28-30, American Safe Deposit
Association, John Marshall Hotel,
Richmond, Virginia.
May 3-6, First Week of Iowa Group
Meetings.
May 13-14, South Dakota Bankers
Association, Annual Convention.
Aberdeen.
May 17-20, Second Week
of Iowa
Group Meetings.
May 27-28, North Dakota Bankers
Association, Annual Convention,
Gardner Hotel, Fargo.
May 30-June 3, American Institute of
Banking, 53rd Annual Conven
tion, Miami, Florida.
June 3-4, Wyoming Bankers Associ
ation, Annual Convention, Sheri
dan.
June 8-10, Illinois Bankers Associ
ation, Annual Convention, Jeffer
son Hotel, St. Louis, Missouri.
June 13-15, Minnesota Bankers Associ
ation, 65th Annual Convention,
Radisson Hotel, Minneapolis.

Dandy Job
Mike was smiling all over his face.
“ Eve a dandy job now, Pat,” he told
his friend.
“Who is it ye work for, Mike?”
asked Pat.
“ Casey’s, the contractors,” said his
friend.
“ Phwat is it ye’re doin’?” said the
other.
“Diggin’ a well,” replied Mike, with
an artful wink. “ I’ve dug down so far
now that th’ boss can’t see if I’m
workin, or not.”
Who W on?
A British father took his young son
on a trip to Germany. When he had
finished his first meal, the son asked,
“ Daddy, if we lose the next war, can
we have food like this, too?”
June 13-25, Graduate School of Bank
ing, Rutgers LTniversity, New
Brunswick, New Jersey.
June 16-18, Colorado Bankers Assoeition, Annual Convention, Colo
rado Hotel, Glenwood Springs.
June 16-18, Montana Bankers Associ
ation, 52nd Annual Convention,
Canyon Hotel, Yellowstone Na
tional Park.
June 20-22, Wisconsin Bankers Asso
ciation, A n n u a l
Convention,
Schroeder Hotel, Milwaukee.
July 24-August 6, School of Financial
Public Relations, FPRA, North
western University, Chicago.
September 25-28, American Bankers
Association, 81st Annual Conven
tion, Chicago, Illinois.
October 10-13, National Association of
Bank Auditors and Comptrollers,
Denver, Colorado.
October
11-12, Nebraska Bankers
Association, Annual Convention,
Cornhusker Hotel, Lincoln.
October 13-16, National Association of
Bank Women, Westward Ho,
Phoenix.
October 23-26, Iowa Bankers Associ
ation, 69th Annual Convention,
Hotel Fort Des Moines, Des
Moines.
November 13-16, Robert Morris Asso
ciates, Annual Fall Conference,
Dallas, Texas.
November 14-18, Financial Public
Relations Association, Hollywood
Beach Hotel, Hollywood, Florida.

Nort hwest ern Banker. March, 1955

102

LEGAL

4 an 40id-Affe P a ym en ts He R eco vered
Front R ecipien t JXtttr 40tvnintj H ou se?
Q.

A bank employe sought to buy a
house in Nebraska belonging to Fel
lows in 1952. Fellows has received
old-age assistance from the State be
tween 1947 and 1951 of $1,500 and from
1951 to 1952 of $500. He had acquired
the property from a relative in 1951.
The State sought to establish a lien
against the property for $2,000, that is,
its full payments between 1947 and
1952. A law creating lien rights had
been passed in 1947. Fellows contend
ed its lien should be for only $500, the
amount paid him from 1951 when he
came to own the property. Should the
State prevail?

Yes. It is the position of the Su
preme Court of Nebraska in old-age
assistance cases of this character that
liens attach for all amounts paid to
recipients from the date the lien stat
ute became effective irrespective of
the time the property was acquired.
The law contemplates a lien for the
full amount on any real estate then
owned and subsequently acquired.

u
A Minnesota bank director owned
a store in that state which was man
aged by an employe on whom a fidel
ity bond had been obtained. The bond
read that it would protect the owner
against dishonesty and other fraudu
lent acts of the employe. Losses oc
curred at the store due to the man
ager’s mistakes and negligence. Could
the owner recover on the bond?

No. In so ruling on an analogous
situation recently, the Minnesota Su
preme Court pointed out that to re
cover on such fidelity bonds the bur
den of proof rests with the plaintiffemployer to establish that the loss
was caused by an act of dishonesty or
fraud. Acts of dishonesty and fraud
are not established by mere proof of
mistakes and negligence, and where
mistakes and negligence only exist, no
recovery can be had for dishonesty
and fraud.
Northwestern
Banker, March, 1955

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

The trust officer of an loAva bank
Avas confronted with a situation where
an elderly lady customer had made a
will in circumstances where she had
mind enough to know in a general
Avay the natural objects of her bounty,
the nature and extent of her estate,
and the disposition she Avished to
make of it. She Avas not, however,
quite competent to make contracts and
transact business generally. Could the
lady make a Aralid will?

LEGAL DEPARTMENT
of the
NORTHWESTERN BANKER

Q. Two Nebraska residents went to
Missouri in 1945 and had a marriage
ceremony performed for them. At the
time, due to a non-final divorce decree,
one of them could not be married.
Later they lived together in Nebraska
as husband and wife for seven years.
During that time they took three vaca
tion trips of a couple of weeks each to
Colorado. There they also lived as
husband and wife. Colorado recog
nizes common law marriages. Nebras
ka does not recognize any entered into
since 1923. Inasmuch as the original
ceremony was invalid, did the trips to
Colorado bring into being a Aalid mar
riage?
No. Temporary trips or sojourns
into Colorado or any other state rec
ognizing common law marriages by
the parties in which they held them
selves out to be husband and wife
were not sufficient to bring into being
a valid marriage. They did not
change, or intend to change, their dom
icile or residence to that jurisdiction.
The Nebraska Supreme Court has so
ruled recently in a decision involving
similar facts.

Yes. In a recent decision the Iowa
Supreme Court specifically stated that
it is not necessary that one be compe
tent to make contracts or transact
business generally to be able to dis
pose of his property by will. As long
as a testatrix has mind enough to
know in a general way the natural
objects of her bounty, the nature and
extent of her estate, and the disposi
tion she wishes to make of it, she
may make a good will.

An elderly woman executed a
deed to Jones of a South Dakota farm
she owned in circumstances where it
was subsequently contended that the
document had been obtained through
the use of undue influence. As an in
cident to the execution she simply had
called in her lawyer to prepare the
form, had told him of her decision, and
had instructed him to go ahead. There
is a rule of laAV to the effect that un
due influence Avill not be held to exist
where one has competent, independent
adAdce. Would such rule be applicable
here?

No. The South Dakota Supreme
Court has so ruled recently, saying
that the lawyer had not been dealt in
on the matter for counsel, but as a
draftsman and that “ The theory of law
that removes the cloud of undue in
fluence on a showing that the one al
legedly overpersuaded had independ
ent advice involves actual advice that
is neither incompetent nor perfunc
tory.”

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Federal Reserve Bank of St. Louis

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•

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CORRESPONDENT
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V ic e President
Everett M . Griffith

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Federal Reserve Bank of St. Louis

V ic e President

M ichael J. Costello

Assistant Cashier
Christy F. Armstrong

Assistant Cashier

Des Moines
National Bank
Des Moines

• Founded 1868

Member Federal Deposit Insurance Corporation