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M ARC
1061

VALLEY BANK WELCOME

CHICAGO BANKER WINS DOUBLE AWARD

OMAHA BANKER HONORED
HARRIS BANK S VARIETY SHOW


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Federal Reserve Bank of St. Louis

COVER STORIES ON PAGE 9
Ê38

OVER HALF OF ALL IOWA BANKS ARE MERCHANTS NATIONAL CORRESPONDENTS
Fast, efficie n t, clea rin g service is one g o o d reason. The
Merchants National Bank clears thousands of checks each
day for its correspondents. W hatever your correspondent
needs may be, you can rely on the Merchants National for
prompt, accurate service. Your call will be welcomed.

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Federal Reserve Bank of St. Louis

MEMBER

F. D.I .C.

3

L o o k into th e p rofit o p p o r t u n it ie s
in y o u r b o n d a cco u n t

W hether y ou w ould like b on d in vest­
m ent advice, portfolio analysis, assist­
ance in the m anagem ent o f you r b on d
a ccount, or adjustm ents in you r h old ­
ings for tax purposes, a specialist from
our B on d D epartm en t will be h a p p y to
w ork w ith y o u personally at any tim e.
P hone or w rite for full inform ation. A n
officer will visit y o u in you r office at
you r conven ience.

T o realize m axim um profit from you r
b a n k ’ s in vestm ent p ortfolio, y o u are in ­
vited to h ave an experienced N orthern
T ru st B on d D epartm en t officer assist
y o u in the selection and m anagem ent
o f y ou r securities.
Y ou will find him alw ays abreast o f
current m arket conditions, and well in­
form ed on the use o f U. S. G overnm ent
a n d t a x -fr e e m u n ic ip a l s e c u r itie s .

N O R T H E R N /T R U S T
NORTHWEST

CORNER

LASALLE AND MONROE
In t h e

H e a rt of the

F in a n cia l

D istrict • C h ic a g o ,

BANK

Illin o is * F i n a n c i a l

6-5500

• M em ber

F .D .I.C .

No. 884. Northwestern Banker is published monthly by the Northwestern Banker Company, 306 Fifteenth Street, Des Moines 9, Iowa. Subscription,
35c per copy, $3 per year. Entered as Second Class Matter January 1, 1895, at the Post Office at Des Moines, Iowa, under the Act of March 3, 1879.


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Federal Reserve Bank of St. Louis

4

GREAT NEW NAME
IN BANKING

UNITED CALIFORNIA BANK
N ow with 122 offices
border-to-border throughout California

The uniting of CALIFORNIA BANK with 51 offices of First Western Bank now
will make available to industry, business and individuals complete banking
service throughout California. Strategically located offices, including major
representation in the metropolitan areas of Los Angeles and San Francisco,
provide the finest in modern banking facilities.
When you do business with UNITED CALIFORNIA BANK, you receive personal
attention and business-minded service in all your banking transactions.

L OOK TO US W H E N

YOU

L OOK W E S T

UNI TED
CALIFORNIA
BANK
L O S A N G ELES
Southern D istrict H eadquarters
600 South Sprin g S tre e t

CAPITAL FUNDS over $160 Million
RESOURCES over $2 Billion

Northwestern
i Banker # M a r c h , 1961
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Federal Reserve Bank of St. Louis

SAN FR A N C IS C O
N orthern D istrict H eadquarters
405 M ontgom ery S tre e t

5

O ldest F inancial J ou rn a l W est o f the M ississippi

for your M A R C H , 1961, reading
••••••••••••••••••••••••••••••••••••••••••••• a *
67th Year

I h

a r

K tU U tv

No. 884

E D IT O R IA L S
12

A cross the Desk from the Publisher

5
9
21
23
24

D ear E ditor
On the Cover
F rontispage
Planning a Successful Finance Forum -—M ary E w in g
H ow Banks Prom ote Savings Accounts
— A N orthw estern B a n k e r S u rvey
Banks Take Steps to Reassure Public
The Banker and His Com munity— C. H. R eilly, Jr.
H ow to Get M ore Business fo r Y ou r Bank
Bankers Y ou K now — E dw ard W . Lym an

FEA T U R E A R T IC L E S

28
29
30
32

IN SU R A N CE

‘‘Unusual Statement”
“ Here is a news item that might help pro­
vide amusement in this serious business that
we are in.
“ Quite often when I ask a customer for a
financial statement who is not familiar with
financial statements, I am asked the manner
in which the statement should be submitted.
My reply, somewhat in jest, has always been
that we provide a blank form if the customer
desires but, for that matter, a financial state­
ment could be made up on anything, even a
paper sack.
“ Well, after all these years it finally hap­
pened. A. L. Tunick actually submitted his
personal statement on a paper sack. Mr.
Tunick is president of Chicken Delight Cor­
poration, a national franchise company, and
is president of the International Franchise
Association. He has a good sense of humor
and he and I both got a good laugh from his
submitting his financial statement on a pa­
per sack.”
T. L. Vinyard, Executive
V ic e P r e s id e n t , First
Trust 4' Savings Bank,
Davenport, Iowa.

47

H ow Y ou Can Get Faster Service on A pps
— A N orthw estern B a n k e r S u rvey

53

Banks Can Profit W ith M ore M unicipals This Y ear
— A N orthw estern B a n k e r S u rvey
Profit Through Y ou r B ank’s Bond Departm ent— W a rren F . Sarle

A N N U A L BOND AND IN V ESTM EN T R EV IEW

59

ST A T E BAN KIN G N EW S
M innesota
Tw in City
South Dakota
Sioux F alls
N orth Dakota
M ontana

77 Colorado N ew s
News 63
79 W yom in g News
News 67
81 Nebraska News
News 69
84 Omaha News
News 71
News 73
86 Linooln News
ib£nà 91 Iow a News
News 75
106 Des Moines News

O T H ER FEA T U R ES
104
108
110

Index o f A dvertisers
The B ankers’ M arket Place
In the D irectors’ Room
NORTHWESTERN BANKER
306 15th Street, Des Moines 9, Iowa, Telephone CHerry 4-8163
Associate Publisher

Publisher

“ Bank Auditing”
“ The bank auditing article featured on
pages 30 and 31 of the February issue of
N orthwestern B anker is excellent, and it
should be read by bankers and the many
men and women who serve on bank boards
of directors. In fact, anyone who is a di-

DEAR EDITOR . . .

(Turn to page 6, please)

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Federal Reserve Bank of St. Louis

Associate Editor

Waiter T. Proctor

Advertising Assistant

Elizabeth Cole
Field

Editor

Malcolm K. Freeland

Clifford De Puy

Representative

A! Kerbel

Sen J. Haller, Jr.
Associate Editor

Doyle Minden
Circulation

Department

Lena Sutphin
Field Representative

Paul Masters

Frank P. Syms, Vice President, 550 Fifth Avenue, New York 36, JUdson 2-7126
Milton P. Bock, Vice President, 654 Baker Building, Minneapolis, FEderal 6-5357

DE PUY PUBLICATIONS: Underwriters Review, Northwestern Banker,
Iowa-Nebraska Bank Directory
Northwestern Banker, March, 1961

6

Bank Assets Increase
Total assets in the 568 Iowa char­
tered ban k s at the end of 1960
amounted to $2.3 billion, an increase
of nearly 3 per cent over the total
for 565 banks a year earlier, the state
banking department reported recently.
The exact total last December 31
was $2,334,795,953.
The consolidated statement as of
the end of 1960 showed an increase of
nearly 150 per cent in the amount of
Commodity Credit Corporation guar­
anteed loans and certificates.
There was a gain of more than 5
per cent in total cash, U. S. securities,

and CCC loans and certificates. The
cash total on December 31 was $1,024,547,407.

per cent, and time deposits amounted
to $75,772,397, up 1.95 per cent.

Loans and discounts increased 1.64
per cent in 1960, to a total at the end
of the year of $1,073,892,391, or 46 per
cent of the total assets.

Heads IBM Bank Sales

During the year, capital increased
by 3.52 per cent to a total of $53,656,000, and surplus increased by 4.06 per
cent to $77,637,500. Undivided profits
and reserves went up by 14.65 per
cent, to a total of $91,241,967.
At the end of the year demand de­
posits totaled $1,200,997,268, up by 2.39

Albert H. Pfanschmidt has been ap­
pointed banking and finance industry
manager for the data processing di­
vision of International Business Ma­
chines Corporation.
Mr. Pfanschmidt succeeds Francis
G. Rodgers, who was named sales
manager for IBM’s Eastern region.
In his new post, Mr. Pfanschmidt
will be responsible for marketing IBM
data processing equipment to banks
and brokerage houses. He will work
with the company’s banking special­
ists in IBM offices throughout the
country.

DEAR EDITOR . . .
(Continued from page 5)

ABOUT ARIZONA

Cost of living . . . housing . . . taxes . . . employment
. . . schools and education . . . community property
laws . . . traffic laws . . . land . . . retirement (etc.).
This little, colorful booklet was prepared for new
arrivals in Arizona. But of course we have a copy
saved for any financial friends who want it!
( W R IT E O U R

RESEARCH

D E P T ., P H O E N IX )

Resources Over $680 Million

M E M B E R

F E D E R A L

Nort hwesf ern Banker, March, 1961


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Federal Reserve Bank of St. Louis

D E P O S IT

IN S U R A N C E

C O R P O R A T IO N

rector o f any corporation will find it to be
o f interest.
“ Now is the time for all banks to secure
the services o f a competent and well quali­
fied bank certified public accountant. The
C.P.A. should be hired on the broadest pos­
sible basis. This is necessary to relieve the
minds o f the public about the security that
they have learned to appreciate in banks to­
day. Recently, we have read much about #■
the banks seeking and finding better public
relations with their customers and the public
as a whole. The well advertised use of a
C.P.A. will certainly go very far to relieve
doubts in customers’ and public minds and
do much to remove this most recent blot on
the banking fraternity.
“ A moment ago I mentioned the broadest
basis possible in securing the services of a
bank C.P.A. This is meant to convey that *
the C.P.A. be allowed to verify at random
bank balances o f all customers, i.e., check­
ing accounts, savings accounts, time deposit
certificates, also the note case, the install­
ment loans and mortgage loans on real es­
tate should be verified in like manner.
“ The use o f the C.P.A. should be well
advertised as an additional protection of the
depositor and service to keep their bank
strong and progressive.
“ The directors in their examinations
should do the same type of verification as is
suggested for the C.P.A.
“ Some bonding companies allow consider­
ation in the premium for the bank using an
outside C.P.A. audit and full and complete
opinion.
“ It occurs to some of us that the FDIC
may attempt as a direct result o f the Shel­
don, Iowa, affair to require the use of C.P.A.
audits as part of the qualifications for con­
tinuing under PDIC protection.
I think
that the banking industry would be well ad­
vised to act first before they are ordered by
the government.
“ Many thanks for such a fine article. I
sincerely hope that all banks, regardless of
size, read it and act accordingly for their
own good.”
E. G. Webbies, Assistant
Secretary, Hawkeye-Security Insurance Company,
Des Moines, Iowa.

7


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Federal Reserve Bank of St. Louis

Northwest ern Banker, M a rch , Ì 9 6 1

8

jîj

we study new procedures... investigate new devices;
and are glad to talk with correspondent banks about
operational problems.

*
H e rth w e sie rn Banker, March, 1961


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Federal Reserve Bank of St. Louis

FIRST NATIONAL CITY BANK, o f c o u rse ?
M em b er F ed e ra l D epo sit Insurance Corporation, naturally

9

ON THE COVER

541 Y e a rs fo r C h a rles K an iatj
*•

A TWO-FOLD award was presented
J \ to Charles C. Kuning, vice presi­
dent, American National Bank and
Trust Company of Chicago, recently,
> one marking his 25th anniversary with
the bank, and the other signifying
more than 50 years’ service to the
banking industry of Illinois.
COVER PHOTO
CHARLES C. KUNING, second from
right, is congratulated by Robert E.
Straus, left, president, and Allen P. Stults,
vice president, American National Bank
and Trust Company o f Chicago.
Mrs.
Kuning, far right, was present at the
ceremony.

_

>

•

ts

>

Mr. Kuning, 78, and still active in
the bank’s correspondent bank divi­
sion, was awarded his 50-year pin by
Allen P. Stults, executive vice presi­
dent, on behalf of the Illinois Bankers
Association. Robert E. Straus, president, commented, “This comes 12
years late. Actually, Charlie started
in banking as a lad of 16. However,
he has never stayed still long enough
for us to give him this well-deserved
award.”
Starting with the old Chicago Na­
tional Bank, Mr. Kuning’s illustrious
career has been spent almost entirely
in banking and allied areas. In 1905
he joined the Commercial National
Bank in Chicago, leaving there in 1912
to become vice president and cashier
of the Cedar Rapids National Bank in
Iowa.
He remained in Cedar Rapids for 19
years, and in 1931 moved to Des
Moines as manager of the Reconstruc­
tion Finance Corporation office, a posi­
tion he held until joining American
National in 1936.
Reminiscing about his career, Mr.
Kuning said, “My first position was
with the old Chicago National Bank of
which John R. Walsh was president.
He built a new bank building next to
where Harris Trust is today. He made
the rounds each night to see that there
were no ink spots on the desks, etc.,
and that all papers were put away. If
we were out of balance, the error had
to be found that day. Things have
changed a great deal. Today in our
bank, every employee can reach the
top officials—unheard of years back.”
Mr. Kuning started American Na­
tional’s Correspondent Bank Division,
which has grown until today it is
manned by eight officers who service
more than 600 customer banks.
In recognition of this 25 years with
American National, Mr. Kuning was
given a planter with a sterling silver
bank emblem affixed to the side. Mrs.
Kuning was a guest at the presenta­


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Federal Reserve Bank of St. Louis

tion, receiving a dozen “golden” roses
as an expression of the bank’s appre­
ciation of her part in keeping Mr.
Kuning on the job through the years.
Following the presentation, Mr. and
Mrs. Kuning left on a swing through
Iowa, one more trip that contributes
to the 35,000 miles Mr. Kuning travels
each year.
ON THE COVER

Valley Bank Welcome
Walter R. Bimson, chairman of the
Valley National Bank, Phoenix, Ariz.,
recently welcomed two new directors
to the bank’s board. Alf B. Claridge,
prominent Safford area rancher-busiCOVER PHOTO
ALF B. CLARIDGE, right, and Earl L.
Bimson, left, are welcomed by Walter R.
Bimson.

nessman, and Earl L. Bimson, vice
president and comptroller of the 67office Valley Bank system, were elect­
ed at the annual stockholders’ meet­
ing.
ON THE COVER

AS YOU READ T H I S ...

MILLION
READERS OF

TIME • NEWSWEEK
U.S. NEWS & WORLD REPORT
HOLIDAY • NEW YORKER
NATIONAL GEOGRAPHIC
SPORTS ILLUSTRATED
WITH M ONEY TO SPEND
AR E BEING REACHED WITH
THIS MESSAGE

Omaha Banker Honored
The Third A n n u a l T e le v is io n
Awards Dinner for Omaha’s KMTV re­
cently honored John F. Davis, presi­
dent, First National Bank, Omaha, for
his “foresight in underwriting the first
COVER PHOTO
DAVID BRINKLEY, left, NBC Washing­
ton correspondent, was awards dinner
speaker. Others, from le ft: Bob Fuller,
K M T V head newscaster; John F. Davis,
pres., First National of Omaha, and Leo
A. Daly, pres., Leo A. Daly Company, 1958
winner.

complete local television series of what
has come to be known in television as
‘in depth specials’.” The series, called
“ The Hidden City,” won se v e ra l
awards and national recognition.
ON THE COVER

Harris Bank’ s Show
Nine Harris Bank employees ac­
companied by Lenny Stevens’ orches­
tra presented songs and dances from
Broadway musicals as part of the an­
nual Harris Trust and Savings Bank
staff dinner in the Conrad Hilton Ho­
tel, Chicago.
COVER PHOTO
PERFORMERS left to right: Donna
Christensen, Clare Tunnat, Herb Ullmann
as Hubert the Harris lion acting as mas­
ter o f ceremonies, Ellen Walsh and Beryl
Sprinkel. Second row, left to right, are
Bob Hawley, Bill Weiner, Norm Corban
and John Lagerlof.

. . . DOES YOUR BANK OFFER
THESE PRESOLD CHECKS WITH

• 90% Selling Commission
• Choice of Wallet Colors
• Free Sales Aids

F IR S T
N A T IO N A L C ITY
BANK
Member Federal Deposit Insurance Corporation
Northwest ern Banker, March, 1961

10

U n ited C a liforn ia H ank H a s
O ver
$ 2 B illion in
United California Bank, a
T HE
state-wide institution which re­

sulted from the merger on February
27 of California Bank with First West­
ern Bank and Trust Company, has to­
tal resources of more than $2 billion,
according to Frank L. King, chairman
of the board and chief executive officer
of the merged bank.
Under terms of the merger, 50 of
First Western’s 115 offices joined Cali­
fornia Bank’s 70 offices to create the
120-office, $2 billion bank. The remain­
ing 65 offices of First Western Bank
were transferred into a separate and
new banking institution known as
First Western Bank and Trust Com­
pany.
Based on the December 31 state­
ments of condition of the merged
banks, United California Bank has de­
posits of $1.8 billion, loans of more
than $1 billion, and capital funds in

excess of $160 million. Par value of
its 4,967,047 shares is $12.50 per share
and book value based on December 31
figures is $32.61.
The merged bank is the fourth larg­
est in California and the 14th largest
in the nation. Its operating earnings
during the first year are estimated at
an annual rate of $2.40-$2.50 per share
and dividends are expected to be paid
quarterly at the annual rate of $1.60
per share.
The merged bank has 69 offices in
Los Angeles and vicinity, 17 in San
Francisco and vicinity, and the re­
maining 34 offices spread over the
length of California.
Francis S. Baer, former chairman of
the First Western Bank, is the new
chairman of the board, San Francisco
of United California Bank with his
office at the northern district head­
quarters.

THE MAGIC OF SPEED
Those of us who are exposed to
the magic of speed sometimes find
that tricks are played on our imagi­
nation in that we believe things are
done when in reality they are only
begun. We read an exciting article
about some push-button gadget
that runs a plant from the "black
box” housed in a console, and as
we read we convince ourselves that
this is really something. Even the
concluding statement that the thing
won’t be available for another five
years doesn’t always bring us back
to earth.
Apropos to what? Well, apropos
to the MICR program, for which
the basic planning is done but on
which implementation is just be­
ginning. This program emphasizes
speed to such a degree that we our­
selves get the impression that we
are moving as fast as a souped-up
computer, whereas we are simply
taking one step at a time. When we
awaken to this, we get the feeling
that we have been dragging our feet,
simply because we haven’t moved
as fast as our mental projections.

What brings this to mind is our
inquiry o f our production group as
to when we would be completely
retooled for MICR. The production
planning group reports that their
job is virtually finished. They know
now what they have to do and they
know how to do it. The imple­
mentation group reports that their
work is about 50% under way. In
other words, actual production of
MICR orders is filling the encod­
ing requirements o f more than
9,000 banking offices operated by
4,600 banks. N ot too bad in a way,
but nevertheless, this exposure to
speed creates a slow burn inside
because we aren’t m oving fast
enough.
How about you? If you are con­
vinced, as we are, that MICR is
a sound, workable system, could
you accelerate your plans to adopt
it? If so, we are in position to
provide the checks you need from
eleven plants staffed with people
who know their jobs. We are
over the hump and looking for
work.

M a n u fa c tu rin g P la n ts a t:
C L IF T O N , N O R W A L K , P A O L I, C L E V E L A N D , D E T R O IT , IN D IA N A P O L IS ,
C H IC A G O , K A N S A S C I T Y , S T . P A U L , D A L L A S , C H A T S W O R T H

CHECK

PRINTERS

<ßnc.

Nort hwest ern Banker, March, 1961


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Federal Reserve Bank of St. Louis

As chairman of the board, Los An­
geles and chief executive officer, Mr.
King will continue to be at the head
office in Los Angeles. Clifford Tweter,
president and second in command, also
will keep his office at the Los Angeles
head office.

Observes 25 tli Year
John J. Stine, assistant vice presi­
dent of the Security First National
Bank, Los Ange­
les, is celebrating
his 25th anniver­
sary.
Mr. Stine trav­
els th ro u g h o u t
the middlewest as
a member of the
bank’s bank and
cu sto m e r r e l a ­
tions department.
S ta rtin g w ith
J. J. STINE
Security as a messenger, he worked his way up the
banking ranks, and in 1955 was named
an assistant cashier. He was promoted
to his present post in 1958.

Gamble Sales Record
Gamble-Skogmo, Inc., with head­
quarters in Minneapolis, Minn., re­
ported 1960 earnings, including in­
come d e r i v e d from sale of its
investment in Western Auto Supply
Company, were at an all-time high,
far exceeding any previous year, and
the company entered 1961 in the
strongest financial position in its his­
tory, according to B. C. Gamble, pres­
ident.
Consolidated net sales of GambleSkogmo, Inc., for the year ended De­
cember 31, 1960, attained a new high
on a comparable basis, amounting to
$143,369,286, and compared with $143,123,142 in 1959.
Profit before taxes amounted to $28,051,121, including the non-recurring
income from sale of the Western Auto
stock.

11

a S A L U T E to H o u s t o n

and

Harris

County, Texas!

Dynamic Houston, metropolis and financial center
of the South . . .
• seventh largest city in the nation
• our nation’s second largest seaport in total tonnage moved
• abounds in vast production of petroleum refineries, petrochem­
icals, organic and inorganic chemical products, rice, cotton,
cattle and diversified industry

the POST-TRONIC*
machine report to
BANKERS...
• Confirmed reports to January 31, 1961
show 6,526 POST-TRONIC* machines
now in use in 1,388 banks in the
United States, Puerto Rico and Canada.
• Over 13,000 conventional machines
have been replaced by the electronically
controlled POST-TRONIC machine.
• One of every three checking accounts
in Am erica is posted by a
National POST-TRONIC machine.
• and now W O RLD -W ID E ORDERS for
more than 500 POST-TRONIC machines
have been received from bankers
in Europe, South America, Africa,
Asia and Australasia . . . an
expression of CONFIDENCE by bankers
and financiers throughout the W orld!

Call your nearby National representative NOW!
He has reserved a copy of National’s brochure,
“ Bank Economation,” for you. This call could be
the most advantageous one you make TODAY!

• rapidly being recognized as one of the nation’s most important
financial and business centers.
Among the 62 banks in Harris County (Houston is County Seat),
27 use National machines for bank accounting operations. And
among these, the following banks use the National POST-TRONIC* . . .
the electronically controlled posting machine for banks!

NAMF OF RANK
,,H,¥,C
DHr,lx

Number of
POST-TRONIC*
machines used

Number of
Conventional
machines replaced

American Bank & Trust Company, Houston...................2 ...........................5
Bank of the Southwest National
Association, Houston ..................................................8 ......................... 16
Bank of Texas, Houston.......................................................2 ........................... 4
2 additional
Citizens State Bank, Houston........................................... 6 ...........................8
Citizens National Bank & Trust Company, B a y t o w n ...4 .......................10
Humble State Bank, Humble............................................. 1 ........................... 2
Houston Bank & Trust Company, Houston.................... 4 ...........................6
The Industrial State Bank of Houston........................... 3 ........................... 6
Lockwood National Bank of Houston............................... 1 ......................... **
Merchants State Bank, Houston...................................... 1 ............................*
Montrose National Bank of Houston................................2 ...........................4
First Pasadena State Bank, Pasadena..............................6 . .......................12
River Oaks State Bank, Houston.......................................3 .................... . . . 6
**The first bank in the State of Texas to install
POST-TRONIC machine — a new bank at that time.
♦Installed POST-TRONIC machine after change in
charter to a State Bank.

* T R A D E M A R K REG. U .S . PAT. O FF.

ELECTRONIC DATA PROCESSING

THE NATIONAL CASH REGISTER COM PANY,

D a y t o n 9 , O h io

ADDING MACHINES.CASH REGISTERS
ACCOUNTING MACHINES.NCR PAPER

1039 OFFICES IN 121 COUNTRIES • 77 YEARS OF HELPING BUSINESS SAVE MONEY

>


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Federal Reserve Bank of St. Louis

Northwest ern Banker, March, 1961

12

ACROSS
W o rn

CVsuvi. dL. j l . StuMjniLt&L:
P residen t, S tate Savings Bank,
Fontanelle, Iowa.

With your year-end statement you printed a
“ Declining Gold Reserves-Warning that Should he
Heeded,” and in it you made these observations:
1. The rate our nation is losing its gold reserves
means that foreign investors are losing confidence
in the financial management in the U.S.A.
2. President Franklin D. Roosevelt made a hasty,
ill-advised decision in 1933, to abandon a redeem­
able currency; to take from the people and from
their banks all gold coins; then to cut the gold con­
tent of the dollar from about V2 0 of an ounce to
only % 5— devaluation.
3. Our government is required to permit its paper
dollars and bank checks to be converted into gold
when accumulated by central banks and govern­
ments of foreign countries. Those recipients are
exercising their privilege now. B y doing so they can
discipline our federal government. Our own citizens
deserve that right; but that was taken from them
in 1933.
4. Our federal debt was $22 billion when we went
off gold. Now it is the fantastic $290 billion mark.
It is generally known that our leaders have no inten­
tion of providing for the payment of this debt.
When the United States was on a redeemable gold
standard the accumulation of gold by its citizens
was a “ warning” and acted like a barometer to
government officials that their fiscal policies of tax­
ing and spending were unsound and not popular.
Today we have no such barometer.
Not one single bill introduced by Congress has
suggested where or how to reduce expenses.
Labor Unions want more spending authorized by
Congress, the welfare block seeks more funds for
the aged, and the requests are endless.
Isn’t it time to stop increasing our national debt
and start balancing our budget? The gold stand­
Nort
ern Banker, March, 1961
Digitized
forhwest
FRASER
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

ite

DESK
P u M ió fie fc

ard helped as a warning signal before 1933, but
that is gone now.
This is no time to start on another “ spending
spree” by the Federal Government, but it is time
to realize that the United States is still the greatest
nation and the greatest power on earth, but it will
remain so only if sound fiscal policies are sub­
stituted for global handouts around the world as
well as not wilting under pressure groups at home
for more spending, regardless of how it may affect
our national solvency.
^ ^ ^

£T)sM l.

(x). ¿WiJL WxJjaiuyhlbv:

P residen t, The R oyal Bank o f Canada,
M ontreal, Canada.

When U. S. capital is invested in Canadian cor­
porations, it is certainly not “ a threat to Canada’s
economic independence” as you so well pointed
out in your annual address to your shareholders.
Such investments should be welcomed, because
they furnish “ new money” which helps to build
factories, employ labor and pay taxes to your
government.
Some so-called economists have been expressing
the idea that such United States investments would
in some way infringe on your economic independ­
ence. This is absurd. New capital invested in
Canada is put there because it hopes to get a satis­
factory return over the years ahead. Such money
is not a “ debt” and does not have to be repaid
any more than when Canadians buy stock in cor­
porations located in the United States.
As you put it, President McLaughlin, “ I f the
value of the Canadian dollar is reduced through
scaring off foreign capital, the supply of lendable
funds available to Canadians is also reduced, and
demand for funds in the Canadian market, by
those formerly financing abroad, is correspondingly
increased. As a result the capital market will be
tighter and interest rates higher than they would
be without the restrictions on foreign capital in­
flow.”

13

NEW DIEBOLD DIRECTION CONTROLLED WINDOW SERVES
SMALL CARS, TALL CARS, A L L C A R S H H

DIEBOLD
I N C O R P O R A T E D

Today’s drive-in banking customer may be driving anything from a knee-high
sports car to a tree-high truck. But with this new window, it couldn’t matter
less! It features a deal drawer that moves up and down as well as in and out,
makes drive-in banking convenient for small cars, tall cars, all cars . . . does
so electrically at the touch of a button!
Designed and engineered in a tradition of quality, this new direction controlled
window brings a new concept of convenience and service to your drive-in
banking. Get complete details now! The coupon below will bring them to you.

DIEBOLD, Incorporated — Canton 2, Ohio

Dept. B-123

Gentlemen:
Please send complete details on new Direction Controlled Drive-in
Window.

SAFE COMPANY
A D ivis io n of D ie b o ld , In c o p o ra te d

Name------------------------------------------------------------------------------------------------------------Bank__________________________________________________________________________________________________________
Address____________________________________________________________________ ________

In Canada:

Diebold of Canada Ltd., Toronto
Ahern Safe Co., Montreal


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

City______________________________________________Zone---------- State-------------------------------

DIB-1535

Northwest ern Banker, March, 196Î

14

in sta llm en t C red it
To F ea tu re Itasi n ess F etid ers

J

V

S. M . F L E M IN G

K. V. Z W IE N E R

credit policies and proce­
BANKING
dures appropriate to deal with

POWER
BUILDS
AHEAD
“ POWER BEFORE
IT'S NEEDED” IS
COMPANY’S POLICY

TO K E E P AH EAD of
Iow a’s growing demand for
electricity, Iowa Power and
Light Company is . . .
finalizing plans for construc­
tion o f a giant new 150,000k ilo w a tt p la n t. T h is is
enough new electricity to
l ig h t 3 0 0 ,0 0 0 a v e r a g e
homes. And . . .
cooperating with 10 other
Midwest utilities in the con­
struction o f a 66,000-kilo­
watt atomic power plant.
This is good evidence, we
believe, o f our policy to be
ready to furnish our cus­
tomers plenty of power—
even before they need it.
rvr

conditions expected in the field of in­
stallment credit during the months im­
mediately ahead will be thoroughly
explored at the National Installment
Credit Conference of The American
Bankers Association to be held at
The Conrad Hilton Hotel in Chicago,
March 20, 21, and 22. A tentative pro­
gram for the three-day meeting was
announced by Edward J. Frey, chair­
man of the A.B.A. Installment Credit
Committee and president of the Union
Bank and Trust Company, Grand Rap­
ids, Mich.
The three morning sessions of the
Conference will be devoted to formal
addresses in which bankers will hear
representatives from industry, mer­
chandising, the Federal Reserve Sys­
tem, and education. Among them are:
L. L. (Tex) Colbert, president, Chrys­
ler Corporation, Detroit; J. Marvin
Dodson, executive secretary, Ken­
tucky Education Association, Louis­
ville; Robert W. Galvin, Jr., president,
Motorola, Inc., Chicago; Charles H.
Kellstadt, chairman, Sears, Roebuck &
Company, Chicago; M. S. Szymczak,
member, Board of Governors, Federal
Reserve System, Washington, D. C.,
and J. Philip Wernette, professor of
b u sin e ss administration, School of
Business Administration, University
of Michigan, Ann Arbor.
Banking speakers will be headed by
Sam M. Fleming, vice president, The
American Bankers Association, and
president, Third National Bank in
Nashville, Tenn., and will include:
Reno Odlin, president, Puget Sound
National Bank, Tacoma, Wash.; Ken­
neth V. Zwiener, president, Harris
Trust and Savings Bank, Chicago, and
Chairman Frey.

First National City Merger

IOWA POWER AND
LIGHT COMPANY
Des Moines. Iowa

N orth
estern Banker, M arch , 1961
Digitized
forwFRASER

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

James S. Rockefeller, chairman of
First National City Bank, and Ralph
T. Tyner, Jr., chairman of the board
of National Bank of Westchester,
White Plains, announced plans to com­
bine the two banks, subject to the

E. J. F R E Y

R. O D L IN

approval of shareholders and of the
Comptroller of the Currency. The
terms of the agreement made by the
respective boards of directors call for
the exchange of one share of First
National City Bank stock for each two
shares of National Bank of Westches­
ter stock. National Bank of Westches­
ter will become the Westchester Divi­
sion of First National City. First Na­
tional City shareholders will be asked
to approve the necessary increase in
the outstanding stock of that bank.
The shares of National Bank of West­
chester to be exchanged will include
the 4 per cent stock dividend payable
in March, 1961.
National Bank of Westchester, with
headquarters in White Plains, operates
22 branches in Westchester County.
At the end of 1960 the bank had de­
posits of $216,000,000.

Talcott Ups Earnings

t

j

James Talcott, Inc., one of the na­
tion’s leading commercial finance and
factoring corporations, has reported
record net income during 1960, for the
ninth consecutive year.
Herbert R. Silverman, president
said that receivables acquired in 1960
totaled $1,275,432,000, compared to $1,049,971,000 in 1959. Consolidated net
income was $4,377,030, an increase of
19 per cent over the previous year’s
net income of $3,667,350. Both amounts
include the net income of First Ac­
ceptance C o rp ora tion , Minneapolis,
Minn., acquired by the company in
July, 1960. Provision for federal taxes
on income in 1960 was $4,896,000, com­
pared to $1,507,631 in 1959.
Earnings in 1960 are equivalent to
$3.49 per share on the average num­
ber of shares outstanding during the
year, compared with $3.32 per share
on the average number of shares ef­
fectively outstanding during 1959.
Talcott, founded in 1854, is engaged
in all phases of industrial finance: ac­
counts receivable, inventory and equip­
ment financing, industrial time sales
financing, factoring, rediscounting and
equipment leasing.
<

15

THIS EMBLEM

means
many things to financial institutions
It attracts people to financial institutions for
a special purpose . . . It prompts them to join
Christmas Club where it is displayed . . . It
reminds people of easy, painless, systematic
saving . . . It alerts Christmas Club members
to keep up their payments . . . It represents an
organization which has enjoyed the support
and loyalty for 50 years of financial institu­
tions in every state in the Union . . . And it

identifies your institution with the national
advertising of Christmas Club a Corporation
. . . It stands for a service that builds charac­
ter, builds savings, and builds business for
other services offered by your institution.
Your Christmas Club staff member will be
glad to explain how this emblem can be sup­
plied without charge to your institution.

Make the most of it-

DISPLAY IT

prominently

Cfjrtötmaö Club

C orporation
Builds Character

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

•

Builds Savings

•

230 Park Avenue, New York, N. Y.
Founded by Herbert F. Rawll

Builds Business for Financial Institutions
Northwest ern Banker, M arc h , 1961

16

Y ea r fa r M e r r ill />

ISeeord
international investment firm
T HE
of Merrill Lynch, Pierce, Fenner &

Smith, Incorporated, had a near rec­
ord year in 1960, it was reported by
Albert D. Robson, manager of the
firm’s local office at Des Moines, Iowa.
Gross income in the 53 weeks ended
December 30 eased to $130,404,000 com­
pared with the historic high of $136,080,000 in the 50 weeks ended Decem­
ber 25, 1959.
Net income for the 1960 period was
$13,235,000 or $3.89 a capital share com­

pared with $17,102,000 or $5.02 a share
the preceding year.
The net profits are after extra pay­
ments to employees totaling $10,383,000. This money was paid in three
forms: 1. cash profit-sharing; 2. the
Pension Plan; 3. the Employees’ Profit
Sharing Plan which now has assets of
almost $24,000,000.
Today Merrill Lynch has 129 domes­
tic offices plus 11 offices outside the
U. S.

in THE WALL STREET JOURNAL.
W e’re building safe
guaranteed loans for you . . .

‘ DOUGLAS-GUARDIAN
and YORK OWN BANKER

The company reported capital funds
at the year end totaled $71,241,000,
about $10 million above the preceding
year and triple the 1953 figure.
In the opening letter of the annual
report, Merrill Lynch President Mi­
chael W. McCarthy urged “revisions
and improvements” in five areas of
Federal taxation. They are: 1. capital
gains; 2. so-called “double taxation” ;
3. c o r p o r a te taxes; 4. depreciation
schedules, and 5. taxes on foreign prof­
its of U. S. companies.

Record Building Year
L. J. Orabka, president of Bank
Building and Equipment Corporation
of America, St. Louis, reports in­
creased sales volume and maintenance
of peak earnings during 1960. Sales
income climbed to over $28,300,000, the
highest in history. Net profit, follow­
ing increased contributions to profit
sharing and pension plans, reached
$1,183,000.
The company entered 1961 with a
backlog of more than $33,000,000, and
all but $7,000,000 of this amount is
scheduled for completion during the
current fiscal year.

Promoted by Diebold

that explains it in detail. There’s a D-G man near you, too,

Robert L. Schutt, formerly Detroit
office regional manager, has been
n a m e d general
manager of t h e
C ou n ter E q u ip ­
ment division of
Diebold, Inc., it
was announced by
Raymond Koontz,
president. He will
make his head­
quarters in Ham­
ilton, Ohio.
Mr. Schutt, for­
mer managing edditor of the Mid-Continent Banker,
joined Diebold in 1948 and was
named Iowa regional manager the
following year. He moved to Can­
ton in 1951 as assistant sales man­
ager of the bank division. He was
assigned to the Detroit office as re­
gional manager in 1955.
A free-lance writer, he has contrib­
uted articles for numerous bank and
financial p u b l i c a t i o n s including

who’ll call if you like.

N orthwestern B anker .

A theme that lets you help local enterprise!
D O U G L A S - G U A R D I A N WAREHOUSE RECEIPTS MA KE SAFE,
GUARANTEED LOANS OF THE LOCAL PROBLEMS YOU WANT TO
SOLVE . . . LET YOU SOLVE THEM WITH INSURED ASSETS AND
GUARANTEED COLLATERAL!

In a series of ads in Wall Street Journal . . . we’re telling
business how D-G on-premises warehousing, inventory con­
trol, and warehouse receipts can let you . . . the local banker
. . . turn valuable inventory into working cash.
“ TRAVELING

CREDIT”

means

that

D-G

moves

into the plant, frees inventory for short-term loans, by freezing
it for your security. Bonded inventory control, and a full
report system to you, let you make many loans you want to
make, but couldn’t without this extra security.
When D-G is in the picture, your collateral is guaran­
teed! If your loan officers don’ t know all about DOUGLASG U A R D IA N ’S service, ask now for copies of our booklet

You Can Recommend D - G W ith Confidence

DouglasGuardian
WAREHOUSE CORPORATION
E x e c u tiv e O ffic e s — N ew O rle a n s 1, La.
B ra n ch es In P rin c ip a l C itie s

Nort
hwest
ern Banker, March, 1961

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

In Kansas City Office
John J. Kammerer has been ap­
pointed as special representative in
charge of the American Express
Field Warehousing Corporation’s of­
fice in Kansas City, located at Kansas
Avenue and Railroad Street in Kan­
sas City, Kan.

1 Chase Manhattan Plaza at Sunrise

A New High
for Our Correspondent Banks
Yes, your new address in New York is the tallest bank building in the
World— 1 Chase Manhattan Plaza. We’ve begun moving into a com­
pletely coordinated operation in one building with the very latest com­
munications and processing equipment, and a fine staff dedicated to
“ greater usefulness” for Chase Manhattan’s banking friends at home
and abroad.
All this means a new high in correspondent banking service from
Chase Manhattan’s sixty-four-story headquarters in the heart of New
York’s financial district.
Much of the “ growing space” the new building provides will be devoted
to getting things done more quickly and efficiently for almost 4000
correspondent banks in the United States . . . about half of all banks
with a New York correspondent.
Why don’t you make 1 Chase Manhattan Plaza your address in
New York?

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

THE
Q
CHASE
MANHATTAN
BANK
1 Chase Manhattan Plaza
New York 15, N. Y.
Member Federal Deposit Insurance Corporation
Northwest ern Banker, March, 1961

18

Denver Plans Automation
The First National Bank of Denver
has taken delivery of the first compo­
nent of the General Electric 210 Data
Processing System. Installation of the
new electronic sorter-reader began
January 31 in the new Electronic Proc­
essing Center of the First.
The machine is designed to automat­
ically sort checks or any encoded docu­
ments of various sizes and thickness
at the rate of 750 items per minute. It
is expected that the complete system
will be in operation by May, 1961.

Starting with demand deposit account­
ing, it is anticipated that the Data
Processing System will ultimately be
used to handle loan accounting, trust
accounting, and other record-keeping
tasks with the bank.

Orders New Equipment
The First National Bank of Kansas
City revealed plans for the installation
of new electronic equipment to bring
automation to their check handling,
trust and accounting procedures.
Taylor S. Abernathy, chairman of

Talcott’s billion dollar SERVICE
V O L U M E O F C LIE N T R EC E IV A B LE S P R O C E S SE D PER YEAR
ONE BILLION PLUS

$ 1,000 ,000,000

900.000. 000
800.000. 000

k

700.000. 000

y

l

the board, who announced the pro­
gram, said The First National Bank
has placed an order with a leading
electronic data machine company for
a complete banking system to auto­
matically process trust and checking
account transactions.

Montreal Appointments
The appointments of B. M. Lamont
as supervisor of banking arrangements
and of E. A. Robson as supervisor of
foreign exchange departments, both
with headquarters in Montreal, has
been announced by The Royal Bank
of Canada.

Promote Mosler Executives
In line with long range planning for
growth and diversification, the Mosler
Safe Company announced today a
realignment in top management.
Edwin H. Mosler, Jr., president, be­
comes chairman of the board and
John Mosler, executive vice president,
becomes president. Martin S. Cole­
man, vice president and treasurer, be­
comes executive vice president and
continues as treasurer.

600.000. 000

y

500.000. 000

X
V \ Y

400.000. 000

Nv

300.000. 000

J

200 .000. 000
100, 000,000

V 'v L-jÿ
1V

E. H. M O S L E R , JR.

2

The value of Talcott’s Financing Service to
American industrial and commercial business is
reflected in the growth of client sales volume it
processes annually, now well over the billion
dollar per year mark. Our clients find it profit­
able to use Talcott funds. A very substantial
part of this growth is attributable to bank
referrals and Talcott cooperation with its
banker friends over many years.
When your customers’ loan requests cannot be
accommodated, we continue to suggest “ if you
can’t say ‘yes’, say Talcott.” Talcott will do
its utmost to provide the interim secured
financing required and your bank may partici­
pate if you desire. When the interim financing
needs are over, your customer returns to you
for his normal loan needs.

J. M O S L E R

W. A. Marquard, Jr., vice president,
has been named senior vice president
and a member of the board of direc­
tors and John E. Hampel, sales
vice president for the Central and
Western Regions, has been named
national sales vice president.
Additional areas of direct respon­
sibility have been assigned.
Mr. Coleman will be responsible for
the Western operations of the com­
pany which include the Hermann Safe
Company and Mosler-Harbor Com­
pany and for Mosler Research Prod­
ucts, Inc., the electronic affiliate. Mr.
Marquard will supervise international
manufacturing and the newly formed
Nuclear and Atomic Protective Serv­
ices Division.

James Talcott, Inc.
Reappoint William H. Neal
M ID W E S T

R E G IO N

DETROIT First National Building WOodward 2-4563
CHICAGO 209 South LaSalle Street Financial 6-1444
MINNEAPOLIS First Acceptance Division
Northwestern Bank Building FEderal 9-7711
New York • Los Angeles • Boston • Atlanta

N orthwestern Banker, M arc h , 1961


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

Secretary Douglas Dillon has asked
William H. Neal to continue as na­
tional director of the U. S. Savings
Bonds Division. Mr. Neal has agreed
to do so.

J

19

D A V I D M.
KENNEDY

A R T H U R T.
LEONARD

Chairman

President

C O N T IN E N T A L
IL L IN O IS N A T IO N A L
BANK AND
TRUST COM PANY
OF CH IC A G O

C IT Y N A T IO N A L
BANK AND
TRUST C O M PAN Y
OF CH IC A G O

This is a statement
which we both are happy to sign
... as friends, as bankers, and as Chicagoans
As you know, the shareholders of the Continental and the City National have voted their
approval o f a merger. It is to become effective as soon as possible after the Federal agen­
cies issue final authorization. Our hope is that a physical consolidation can take effect
before the end o f May.
By merging our two banks, we propose to have not merely a larger bank. By com ­
bining our facilities and our trained personnel, as well as our financial resources, our pur­
pose is to provide a banking service second to none.
We have fine traditions behind us. We aim to honor them, and to create some new
ones o f our own, in the interest o f our customers, our shareholders, and our community.

7

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

N orthwest ern Banker. M a r c h , 1961

The C en tral N a tio n al B an k & Trust C o m p any did not com e
by the title of — " Io w a 's Fa v o rite C o rresp o n d en t B a n k " ,
e a s ily . It had to be e a rn e d .
D evoted to duty — d ilig e n t to d e ta ils . . . our T ran sit D e p a rt­
m ent . . . w o rkin g on an "aro u n d -th e -clo ck " b asis . . . o ffers
a tran sit serv ice th at s a v e s both tim e and m o ney fo r our
C o rresp o n d en t Accounts.
W e'd w elco m e the o p p o rtu n ity of ad din g YO U R Account . . .
to our co n stan tly g ro w in g list.

Iowa's Favorite Correspondent Bank

Central National Bank
Trust CoiTipHjry
and

D es M o in e s

Telephone: CHerry 3-8181
Member

hwest ern Banker, March, 1961
DigitizedNort
for FRASER
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Federal

Deposit

Insurance

Corporation

5

21


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

Northwest ern Banker, M arch , 1961

22

A year from now there’ll he a town here. Instead
o f sand and sage and chaparral, there’ll be drug
stores, launderettes and supermarkets.
Everywhere in California, the story is the same
— new towns, new industry, new grow th. And
Bank o f America is keeping pace. With over 600
branches, Bank o f America is ready to provide you
with fast transit service—throughout the state.

W hatever your requirements — future transit
service on this to w n -to -b e , immediate collections
in any part o f the state, or last minute reports from
w orld markets —Bank o f A m erica can assist you.
F or com plete correspondent service, write, w ire or
call: Business Relationships — N ational Division,
300 M ontgom ery Street, San Francisco 20 or 650
South Spring Street, Los Angeles 54.

One Account Covers All California

BANK OF AMERICA
NATIONAL
MEMBER

Northwest ern Banker , March, 1961


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

TRUST

FEDERAL

AND

DEPOSIT

SAVINGS

ASSO CIAT IO N

INSURANCE

CORPORATION

23

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Planning
A
Successful
Finance Forum

--------------------M ary E w i n g , vice president, Union Natioyial Bank, Macomb,
III., outlines in this exclusive aidicle how her bank’s successful
Family Finance Forum was organized and gives valuable tips
fo r bankers interested in starting a similar public relations
program.

HERE are two good reasons for a bank having a
finance forum. The first is to give financial advice
to its customers and prospective customers; the sec­
ond is to promote good public relations.
When we first considered conducting a forum, our idea
was to have one for women. However, when it came to
trying to find time for sessions to suit the housewife and
the business women, it seemed a good idea to be coedu­
cational and have a Family Finance Forum. We have
had two now, one in 1959 and another in 1960.
The first step was to decide on the time. Our bank is
in the middle of the corn belt, in west central Illinois.
Our economy rests on farming, education and a little man­
ufacturing. The crops are in by October and farmers are
interested in group activity. Because school is well under
way by October 1, teachers have time to listen to lectures.
Autumn, however, is not a good time for a forum in an
election year. We found that out in 1960. Attendance
did not compare to the year before and we believe politi­
cal activity was the principal cause.

T

Topic Selection

When dates are set, the next move is to decide on top­
ics which will interest the public you want to reach.
Subjects usually discussed at forums are: “ Personal
Money Management,” “ Stocks and Bonds,” “Farm Eco­
nomics,” “ Insurance and Social Security” and ‘W ills and
Trusts.”
I believe three subjects a year might be enough with
various topics from year to year. It might be a good idea
to use different lecture titles for the same topics. Even
though a speaker is different, if he has the same topic as
a previous one. Mr. Public may think he’s heard every­
thing before, and not come.
Keep a speaker file. Good sources are other forums,
convention programs, newspaper clippings, bank staff
members, a college or university and friends. Ask a
speaker, if possible, four to six months in advance and
you’ll be all set before you start publicity.
Publicity is very important and should start three or
four weeks before the first lecture. Before we released any

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

publicity we sent a dittoed sheet around to all the bank
staff, explaining the forum. We asked for help in spread­
ing the word and also in the mechanics of conducting the
sessions. We needed men to usher and girls to help at
the coffee hour. This communication was good, not only
from the help standpoint, but it was good internal rela­
tions to have everyone in the bank “in the know.”
Advance Publicity

We used two large and three small invitational ads,
some with coupons, in both the daily and weekly papers.
In addition, we ran seven classified ads in the daily paper.
Statement inserts, with an attached reply card, went
out the month prior to the first lecture.
When the coupons and cards came in, we mailed the
tickets with a correspondence card signed by the presi­
dent. Although tickets were free, it seemed advisable to
use them to arrange for seating space. We were advised
to send out 20 per cent more tickets than the capacity of
the auditorium and got by with it all right.
A week before the first lecture, the employees all wore
badges with “FFF” on them to arouse curiosity in the
forum.
The speakers each sent us pictures for publicity which
we used in the newspapers and on printed leaflets. The
latter were used as a mailing piece and also were posted
on bulletin boards at the University. Western Illinois
University co-sponsored the forum the second year. We
used their fine new auditorium and their manual arts
shop took care of most of the printing.
Location Picked

Choice of an auditorium is important. It should be
large enough, comfortable and familiar. Parking facilities
must also be considered.
The president of our bank presided in 1959 over all the
sessions except the one on farm science. The head of our
farm department introduced the speaker that night.
When the University co-sponsored the forum, two deans
FINANCE FORUM . . .

(Turn to page 49, please)
Northwestern Banker, March, 1961

24

A Northwestern Banker Survey

...

f f o í r Hanks Promote Savings

B

ANKERS today are interested in savings account growth and seek
various ways to attract the attention of an apathetic public to this
important service of a bank.
The N orthwestern B anker has conducted a survey among bankers who
have recently concluded successful campaigns for savings accounts, to as­
semble ideas for those who may be searching for a new or unusual promo­
tion plan. Reports from the surveyed bankers follow:
ILLIAM BUXTON III, president,
Peoples Trust & Savings Bank,
Indianola, Iowa:

W

PEOPLES TRUST & SAVINGS OF IN ­
DIAN OLA encourages youngsters to be­
gin the good habit of thrift by featuring
a “ Junior Savers” window at the bank
and a “ School Savers” plan in Indianola
schools. William Buxton III, bank presi­
dent, is shown in above photo as he pre­
sents “School Saver” checks to Sandy and
Pat McConnell, ages 6 and 8, respectively.

“Approximately 700 youngsters from
four elementary schools here partici­
pated this past year in a ‘School Sav­
ers’ program, sponsored jointly by the
PTAs of the schools and our bank.
PTA representatives visited the class­
rooms on designated days each week
to receive deposits from the young­
sters in multiples of 10 cents. These
were deposited to the children’s ac­
counts at the bank and the bank sent
each young depositor a check for his
savings at the end of the school year.
“The purpose of the promotion is to
teach the value of the thrift through
weekly deposits.
“The youngsters this past year
saved a total of $4,416.50. The largest
check paid out was for $50 and the
average amount was for $6.50.
“When the bank was remodeled last
year, customers noticed at the open
house that next to the new teller sta­
tions was a savings window for young­
sters. It was as modern as the win­
dows designed for the adults, being of
the same materials, but was lower for
the convenience of the children of the
Indianola area. This accommodation
also has resulted in new accounts for
the young people here.”
AUL KOSCH, president, First Na­
tional Bank, David City, Neb.:

P“At the time we went to 3 per cent,
FIRST NATIONAL OF FORT WORTH
featured a promotion entitled “ Automatic
Savings— The Space Age W ay to Save”
and attracted considerable attention with
a walking, talking robot, built by a Fort
W orth high school student, and shown
above presenting a new savings account
pass book to a new customer.
Northwest ern Banker, March, 7961


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

we came out with a large ad in the
local paper and followed it up with
smaller ads for a time on a sort of hit
and miss program.
“We officers made it a point, when­
ever a substantial Savings Bond sale
was about to be made, to try to sell

the customer our savings. This worked
quite well and kept the money in our
bank.
“Also, we have used stuffers pro­
moting savings a couple of times . . .
and have doubled our time money the
past couple of years with not too
much promotion expense.”
ORDON
. CROW, assistant vice
G
president, First National Bank,
Fort Worth, Tex.:
a

“A mechanical robot, built by Jack
Hunnicutt, a local high school student,
was used by our bank in a 10-day sav­
ings account promotion entitled ‘Auto­
matic Savings—The Space Age Way
to Save.’
“The inventor demonstrated the ro­
bot in the lobby and for 45-minute
sessions had the robot walk around
the lobby, raise his hands and talk
(via tape recorder).
“Newspaper, radio and television ad­
vertisements were run in connection
with the program, which, because of
the robot, resulted in much favorable
publicity for the bank.
“The savings account campaign was
a one-month affair and did not cost us
any additional funds except for a large
sign we had painted for the lobby and
the rental of the robot from its young
inventor. We spent no more advertis­
ing money than we would have other­
wise.
“Regarding the results, we picked
up about 100 additional authorizations
with the promotion. The real value
of the promotion was the local publi­
city. We had good coverage in the
newspapers and on TV shows and
many people came into the lobby daily
during their noon hour to watch the

25
one who would add $25 to a new or
existing savings account. The new
member would then receive a free
five-piece place setting of silver. There­
after, more place settings could be pur­
chased for only $2.95 with each addi­
tional $10 or more savings deposit.
Later in the program we introduced
matching serving units that could be
purchased in the same manner.
“ Our media was completely coordi­
nated and included radio, newspaper
and in-bank displays. Two newspa­
pers were used along with four radio
stations. Although we maintain con­
stant schedules with two stations at
MARQUETTE NATIONAL BANK offered
least once a month, we planned to use these
attractively-colored foot-tall banks
robot perform. Also, we used TV four stations on a saturation basis. as premiums for opening savings accounts
spots, radio spots, lobby signs and let­ Our saturation plan included 72 ‘quick­ and experienced a, run on the banks that
ies’ (10-second announcements) in one resulted in an unexpected reordering of
ter cards.
“ The Duke” and “ The Duchess” on the
“ The campaign was not directed at given week.
third day and a necessary lim iting of one
any special group and we accom­
“ The staff had been briefed on the to a customer.
plished what we set out to do: Attract book work and actual workings of the
savers through the novelty of the ro­ club and to officially start the cam­
bot.”
paign a breakfast was held for all offi­
cers and staff to officially invite them
W. “BILL’ CR O U LEY, vice to get behind and promote our pro­
• president, Marquette National gram. All present were given person­
alized packets including samples of
Bank, Minneapolis, Minn.:
“The Little Piggies that went to Mar­ certificates, proofs of future newspa­
quette went out almost as fast as they per ads, etc.
“The Bank of Salem Silver Club
came in. We offered these ‘Little Piggie’ banks with a newly-opened sav­ brought us 1,207 members and added
ings account of $200 or more, or with $202,391 to our savings deposits. For
the deposit of $100 or more in a cur- a bank our size, you can well under­
stand why we were so pleased and
rently-active account.
“Dubbed ‘The Duke’ and ‘The Duch­ proud of our first continuity savings
ess’ of Marquette, their appealing de­ program. As a matter of fact, we dedi­
sign, their foot-tall size and their cated an entire page in our annual re­
bright attractive colors served to make port to the 1,000th Silver Club mem­
them among the most sought-after ber.
banks ever offered here. This recent
“As for future plans, I am now look­
promotion is a revival of ‘The Little ing into several possibilities and plan
Piggie That Went to Marquette’ theme to have another continuity program,
successfully launched here five years perhaps this spring.”
ago.
“Through the combined media of
AMES R. RASLEY, assistant vice THE BANK OF SALEM set up a simplenewspaper, television and radio adver­
president, Iowa-Des Moines Na­ in-design, eye-catching display, top photo,
tising, the response was such that on
in a Times-World Building (Roanoke, Y a.)
the third day of the piggy bank display tional Bank, Des Moines:
window, which W D BJ Radio makes avail­
in Marquette’s street level lobby it
“Late last spring we had spectacular able once or twice a year to its custom­
was necessary to reorder and limit the success with a month-long savings ac­ ers. The 1,000th member o f the Silver
Club, bottom photo, studies the silver dis­
offer to one per customer.
count drive which offered Better play in the bank lobby with the institu­
“The original order from the manu­ Homes & Garden books as premiums tion’ s president, Robley Wood.
facturer was for an equal number of
‘boys’ and ‘girls.’ I don’t know wheth­
er- this is another clue to estimating
‘tne power of a woman,’ but the de­
Two new booklets, “ Incentive Savings Plans” and “ Novel Savings Development
mand for ‘The Duchess’ has been run­
Ideas,” were mailed to member banks o f the American Bankers Association recently
ning considerably heavier than for
by the Savings Division of the ABA. The booklets were prepared after a study of
‘The Duke’.”
results o f savings development the past two years by the committee, headed by C.

Accounts

R

J

M. STANLEY, advertising, The
• Bank of Salem, Va.:

E“Our program—The Bank of Salem
Silver Club—was aimed at housewives
and future h o u s e wi v e s and was
launched in June for a seven-month
period.
“The club could be joined by any­

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

Arthur Hemminger, vice president and public relations director, First National Bank
o f St. Louis.
“ Incentive Savings Plans” features a description o f 22 plans used by banks in
recent years to encourage their customers to save money.
“ Novel Savings Development Ideas” stresses the “ man-bites-dog” approach to mer­
chandising savings accounts and offers suggestions o f novelty in savings promotional
efforts.
Additional copies o f “ Incentive Savings Plans” may be purchased from the A B A
Department o f Printing at $1 each. No charge is made for “ Novel Savings Develop­
ment Ideas” which is in bulletin form.
Northwest ern Banker, March, 1961

26

fio ir H a n h s P r o m o te Savinif s A c c o u n ts (C o n tin u ed ) . . .
to new depositors and existing ac­
count holders who made deposits of
$50 or more.
“ In the 30-day period the bank real­
ized well over a half million dollars
of new deposits in savings accounts.
More than 600 new accounts were
opened and additional savings were
deposited in more than 2,300 existing
accounts.
“Depositors had a choice of the best­
selling Better Homes & Gardens New
Cook Book, Decorating Book, Handy­
man’s Book, Garden Book or Barbecue
Book. The Cook Book was the favor­
ite. A total of 1,163 Cook Books were
given away during the promotion, in
addition to 590 Decorating Books, 450
Handyman’s Books, 390 Garden Books
and 380 Barbecue Books.

E A L T E N N IS , vice president,
First National Bank, Sioux City,
Iowa:

N

FIRST NATIONAL OF SIOUX CITY
published a series of attractive newspaper
ads which were designed to emphasize the
bank’s savings account services.

Low Per-Account Cost

“ These books made our program a
distinguished one as these books sell
at as much as $6 a copy, but the peraccount cost to us was low.
“Helping make the promotion an
outstanding success was the wide­
spread publicity given it. The IowaDes Moines National told its story
through newspaper ads and radio and
TV commercials, direct mail pieces
and in-the-bank posters, banners and
displays.
“ On the morning the promotion offi­
cially opened, a full-page two-color ad
was published in the Des Moines Reg­
ister. The ad named the terms of the
savings account offer and featured
large pictures of the five books being
given away. The same ad was re­
peated in the evening Des Moines
Tribune. Smaller newspaper ads were
placed throughout the month.
Prime Morning Time

“ In addition, spot radio announce­
ments by a popular Des Moines disk
jockey caught the morning ‘commu­
ter’ population, reaching job holders
and housewives during prime 6 to 9
a.m. breakfast hours.
“Another important part of the kick­
off was via a half-hour local television
show sponsored weekly by the bank
on the Des Moines CBS outlet. The
show, with a high area rating, used
commercial tie-ins throughout the pro­
motion. During noon rush hours at
the bank local video personalities
were engaged to help distribute books
to savers. These guest appearances
also helped bring new prospects to the
bank.
“Full color 8% x 11 inch flyers were
sent to installment loan customers and
Northwest
ern Banker, M arch, 1961


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

to regular and special checking ac­
count holders.
“ Initial response was good. More
than 200 books were given depositors
the first day alone.
Strong Point-of-Sale Pitch

“A 15-foot, full-color banner at the
head of the escalator which leads to
the second floor main banking room
pictured the five books and explained
the offer. Around the second floor
area, giant-sized full-color models of
the various give-away books were set
up between every two teller windows.
In one corner, a give-away desk was
erected where the books were distrib­
uted. Here, too, posters told the com­
plete story and invited bank patrons
to ‘choose one of the Better Homes &
Gardens books free.’
“At the entrance to each of the
bank’s five drive-in banking teller win­
dows, large full-color posters informed
motorists of the savings account drive.
Street window displays alerted pedes­
trians.
“This diversified and all-inclusive
publicity program left virtually no
one unaware of the Iowa-Des Moines
National’s new business drive.
“Employees were informed of the
promotion several weeks in advance
and were asked to tell their friends
about it. Excellent employee partici­
pation was realized.
“The campaign was excellent and
we believe it showed graphically the
benefits to be reaped by tying in with
such a recognized, trusted name as
Better Homes & Gardens.”

“We wanted a new approach to sav­
ings advertising, so we gave the prob­
lem to our agency in Omaha (Allen
& Reynolds, Inc.), which came up with
three different approaches. They were
so good that we decided to use all
three.
“ One variation features newspaper
ads with unusual reverse photographs
of paper clips, rubber bands, nuts and
bolts and even a ball of string. The
headline for each asks: ‘What Are
You Saving These Days?’ Copy points
out that ‘Smart people are saving
money for the big things they want
in life. And they’re saving at First
National Bank, because . . .’
“Another series uses contemporary
cartoon characters to express a ‘You
Feel Better When You Save’ approach.
One example has an acrobatic charac­
ter expressing his delight with a
twisted one-hand version of a hand­
stand which the copy candidly admits
is an ‘impossible’ pose.
“The third version promotes the
idea of ‘Salting Some Away’ regularly
at the First National. The bank calls
its automatic savings plan the ‘Salt
Some Away Club.’ One ad in this
series has a smug character wearing
all kinds of buttons, badges and rib­
bons. The headline urges: ‘Go Ahead
-—Be a Joiner . . . just be sure to
join the First’s “ Salt Some Away
Club” .’
“All three approaches include exten­
sive radio and television campaigns,
featuring Lyle DeMoss, well-known
midwestern radio-TV personality. In
the ‘Feel Better’ series, for example,
Mr. DeMoss wears a doctor’s white
coat and tells listeners: ‘If you feel
kind of down in the dumps, five New
York doctors can’t do a thing for you.
What you really need to feel better is
money in the bank.’
“Allen & Reynolds is offering the
series on a syndicated basis to banks
in cities outside of the Sioux City
area.”

EORGE E. BUSCHER, president,
G
Alexandria State Bank, Alexan­
dria, Minn.:

“We conducted a savings account
campaign which lasted two years. We
offered no premiums, not wishing to
copy savings and loans.
“ Combined TV, radio and direct mail

27
a balance of at least $10 and the cus­
tomer agreed to have at least $50 in
the account at the end of the year. If
it were closed, or if it did not reach
the $50 by the end of the year, he
agreed to a $3 charge. The cost of
each premium was approximately
$2.50 and the ovenwear turned out to
be more popular than the umbrella.

were used to promote a monthly sav­
ings deposit and officers, employees
and directors of the bank were en­
couraged to help, but they have not
done so well.
“To make the campaign more effec­
tive, I think we should have done
more with the schools. Our savings
increased quite substantially, but we
should have done more campaigning.”
OHN F. GILBERT, branch manag­
er, Berkeley Heights (N. J.) Office,
Union County Trust Company, of Eliz­
abeth, N. Y.:

J

“We conducted a new savings ac­
count campaign in conjunction with
the opening of our new Berkeley office,
starting with our public open house
and lasting two weeks.
“An umbrella was given to persons
who opened a new savings account
with a deposit of $25 or more. The
umbrella given the ladies came in
three colors and the one given men
featured a push-button handle. The
umbrellas cost approximately $2.10
each.
“During the two-week period 207
new savings accounts were realized,
making initial deposits of $45,000 and
255 umbrellas were given to persons
adding $28,000 to existing accounts.
“A record has been maintained of
new accounts that have been closed
since the discontinuance of the pre­
mium and we have found that only 15
have been closed. We find also that
many of the new accounts have been
increased . . . so we feel the promo­
tion was very successful.
“ Several months were used to ad­
vertise the premium. Very effective
multi-colored invitations were deliv­
ered by hand to 5,000 residents of the
area. The invitations were folders
which invited people to the open
house and showed them how to get
there. It also explained the bank serv­
ices available.
“Due to the success of this program,
it is my understanding that there is a
possibility it may be used in some of
our other offices in the near future.”
ALTER K. JOHNSON, vice pres­
ident and cashier, Farmers State
Bank of Estelline, S. D.:

W

“When we celebrated our 40th anni­
versary last year we featured savings
accounts throughout our advertising
and used a golden automobile key, per­
sonalized with the initial of the de­
positor. We provided this key with
each new savings account of $25 or
more or an addition of $25 or more
to an existing account.
“We had quite an event which in
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

V

' K

BE R K E LE Y HEIGHTS O ITIC E of E li­
zabeth, N. JVs Union County Trust gave
women umbrellas in a choice o f three
colors.
Men were given “ push-button”
umbrellas.

eluded the mayor’s proclamation and
a special edition of the Estelline Jour­
nal, commemorating our 40th anniver­
sary.
“ Our campaign in the newspaper
and on radio for savings accounts
lasted about a month, although we
continued giving the keys as specified.
We pay 3 per cent interest compound­
ed semi-annually and this rate was
used in all of the advertising. To sup­
plement radio and newspaper advertis­
ing, we also wore a badge with the
premium keys hanging from it during
the campaign.
“Everyone in the bank worked to
promote the campaign, which was di­
rected toward the entire community,
but which was broadened out some by
the fact that we had a 1920 Model T
Ford decked out with signs which we
entered as a float in neighboring towns
in parades being conducted here and
there throughout the summer.
“ I believe the results were satisfac­
tory although it is always hard to
trace directly the source of every item
of business. Our time money is higher
now than it was a year ago.”
OGER L. REISHER, assistant
R
cashier of the Home State Bank,
Kansas City, Kan., when the following
campaign was conducted there, is now
vice president, Roeland Park State
Bank, Mission, Kan.:

“Our very satisfactory savings ac­
count campaign was conducted for a
six-week period. When a customer
opened an account under the rules of
the campaign, he was given his choice
of an umbrella (man’s, lady’s or little
girl’s), or a 12-piece Anchor Hocking
ovenware set.
“ The account had to be opened with

“As for promotion of the campaign,
the local newspaper and one radio sta­
tion were used to a limited extent and
a great number of promotional pieces
were sent out to selected areas of the
city.
“Officers and employees were en­
couraged to sell accounts by being
given incentives of prizes and gifts,
including the very enticing prize of a
day off work when a certain quota of
new accounts was sold.
“The campaign was not directed to­
ward any particular group, although
it was recognized that it would have
more appeal to women. The results
were considered very satisfactory.”
FORBES OLBERG, vice presiF• dent,
Merchants National Bank,
Cedar Rapids, Iowa:

“During the fall of 1959, as soon as
the new 50-star American flags became
available, we instituted a campaign for
savings accounts in which we gave
away a three by five foot 50-star flag
with pole and house bracket to anyone
opening a $25 savings account. The
campaign was timed to end on Armis­
tice Day, now Veterans Day, and
proved so successful during the threeweek campaign that we decided to run
the campaign again from April 21 to
July 1, in 1960.
“ These flags were beautiful and of
excellent quality so we felt they would
be welcome in any household. As a
matter of fact, about 30 years ago
this bank used the same premium
(fewer stars) in a savings account
campaign. So, there has been an ele­
ment of continuity.
“We coordinated all of our advertis­
ing media—newspaper, radio, televi­
sion—to promote the flag campaign.
We also encouraged our officers and
employees to help sell the idea and
they did an effective job.
“We did not direct this campaign to­
ward any special group, but it was
very effective and we were pleased
with the results. Because of the spe­
cialized nature of the premium, how­
ever, I doubt that we will be consid­
ering a similar campaign in the fu­
ture.”
SAVINGS SURVEY . . .

(Turn to page 42, please)
Northwest ern Banker, March, 1961

28
Iowa, followed by the uncovering of a $700,000 embezzle­
ment by the president of a Knoxville, Iowa, bank.
The question of safety of bank funds, particularly in
smaller communities, became increasingly important.
Several bankers in the midwest decided to take some posi­
tive steps to assure their customers that their funds are
being handled properly.
Full Page Advertisement

Ètank s Take
Steps to
H eu ssu re P u blie
N EVERY community throughout the midwest, as well
as in many cities and towns in other parts of the na­
tion, people have been discussing the unbelievable
embezzlement of more than $2 million from the Sheldon
National Bank at Sheldon, Iowa. Close on the heels of
this discovery was news of three smaller defalcations in

I

At Madison, S. D., for instance, Walter M. Willy, presi­
dent, Security Bank, ran a full page advertisement in the
Madison Daily Leader on February 1, 1961. It is repro­
duced on this page for the benefit of our readers, since
many bankers whom we have told of this special ad ex­
pressed a desire to see it. In his letter to N orthwestern
B anker , Mr. Willy states in part:
“ It (the Sheldon case) was such a common topic of dis­
cussion that we seldom visited with a bank customer that
did not bring up the matter of safety of bank deposits.
“Now that the FDIC has made payment of a large per­
centage of the deposits, publicity has begun to die down.
At the same time, we felt it was a favorable situation to
drive home the protective measures in effect in this
bank.”
Two banks in one Iowa town jointly published a similar
advertisement, and it is understood that several other
banks have used the same method to assure the public
that proper procedures are followed for regular auditing
and supervision within their banks.
Editorials

Multiple Protection—
For Your Security
The need for sound safety measures to protect funds entrusted to others is sharply shown by the misuse
of confidence recently reported at Sheldon. Iowa. It quite naturally raises the question as to how well your
own monies are protected in the Security Bank. Madison, South Dakota. We are happy to answer the in­
quiry. and to show you what safety measures are in force here. Please note the following points:

1.

A State Bank
This is a state-chartered bank. As such it
is regularly examined by the State Banking
Department . . . The last examination was
made on October 14. 1960 by six qualified
examiners . . . The cost of such examina­
tions is paid by the bank. It amounted to
$879.60.

2.

6.

For many years this bank has voluntarily
followed the very complete internal audit
system recommended by the American Bank­
ers Association for Country Banks, and en­
dorsed by ail the supervisory authorities.
This audit covers some 51 important phases
of bank business transactions . . . The Audit
Committee is appointed by the Board of Di­
rectors, and is responsible for reporting di­
rectly to them . . . A part of the procedure is
to require that every checking account own-

Member F.D .I.C .
This bank is a member of the Federal De­
posit Insurance Corporation. They also ex­
amine us periodically. Their last examina­
tion was made on March 16. 1960.

3.

John Doe s $10.000.00 deposit is fully guar­
anteed.
John Doe or Mary Doe’s $10.000.00 deposit
is also fully guaranteed.
John Doe or Jim Doe’s $10,000.00 deposit is
likewise fully guaranteed.
John Doe or Helen Doe’s $10.000.00 deposit
is fully guaranteed.
The cost of such insurance is paid by the
bank. In 1960 this amounted to $1.873.29.

4.

7.

Bank Policies
This bank's personnel policies require the ro­
tation of duties among bank employees, dual
controls, and annual vacations for all. Dual
controls apply to such things as cash, loans,
investments, expenses and all deposit ac-

8.

A $ 1,20 0 ,00 0 Private Bond
In addition to the F.D.I.C. guarantee this
bank carries a private blanket bond for $1,200.000.00 as protection against robbery, em­
bezzlement, and numerous other risks. The
cost of such insurance is paid for by the
bank. The 1960 cost was $2,054.90.

5.

nually (many of them receive them each
month, or more often). Owners of Savings
Accounts receive a statement of the account
and interest earned each six months. This
eliminates the strictly “dormant account.”

Deposit Protection
The $10.000.00 Federal Deposit guarantee
covers each differently - ow ned account in
the bank . . . For example, all of the follow­
ing accounts are protected by the $10.000.00

Audit System

9.

Capital Accounts
This bank has built up total Capital Ac­
counts (as of 12-31-60) of $677.698.63 . . .
This is a "first line" defense against busi­
ness risks of any kind . . . It represents
more than 12Vc of our total deposits which
on the same date were $5,516,454.74 . . . A
ratio of 10^7 is commonly considered very

Trust Funds
As a special guarantee for Escrow and Trust
Funds, this bank has on deposit with the
South Dakota State Treasurer $100.000.00 in
bonds . . . This is especially for the handling
of Estate Funds.

Loan Policies

Loans and investments are diversified to
lessen risks . . . Loans are made on the
Board of Directors
basis of increasing the borrower’s financial
strength . . . and to build a sound commun­
The Board meets each month, or more often
ity. That this policy is sound is shown by the
if necessary, and actively takes part in form­
fact that in the past 10 years, net losses
ing bank policies and in seeing that such
have been $32.00 for the entire period.
policies are carried out . . . The directors
The total of outstanding loans in 1960 aver­
are each substantial businessmen in their
aged $2,781,237.38.
own right
The above 10 points are offered for your thoughtful consideration . . . Any question regarding them will
be cheerfully answered . . . Your inquiry is invited . . . Your generous support has made the sound growth
of this bank possible, and is sincerely appreciated by all of us.

10.

We would like to emphasize that because of management policies our savings accounts have grown
steadily until they now exceed checking accounts. As of January 30, 1961 savings totaled $2,859,865.89 com­
pared to total checking accounts of $2,761,734.39 . . . A guaranteed interest of 3% is paid on saving ac­
counts . . . The interest paid to depositors in 1960 came to $73,595.23 . . . Savings account funds are largely
used for farm real estate loans, home loans, and home improvement loans in the Madison trade territorv.

SECURITY BANK
Member F. D. I. C.
Madison, S. D.
Build Your Own Security "--At Your Home Town Bank

H o rthwestern Banker. March, 1961


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

At Sioux City, television station KVTV presented a
short editorial that pointed out the security afforded by
practically all banks despite the glaring, unfavorable pub­
licity forced on the banking system by the embezzlement
at Sheldon. This editorial was well received in the sta­
tion’s viewing area, and several Sioux City banks ob­
tained reprints of it for widespread distribution to their
customers.
One of the several editorials presented by Iowa news­
papers which pursued the same point, the integrity of the
vast majority of the nation’s banks, was titled, “ Most
Banks Are Well Regulated,” and appeared in the Indianola Record-Herald. Editor and Publisher Lewis S.
Kimer wrote in part:
“We have seen no mention in the press of the number
of banks in the country which are sound and which make
up probably in excess of 99 per cent of the total. There
is absolutely no reason for people to have concern over
the management of most banks today. They are ade­
quately regulated to protect the public. . . .
“ It is also interesting to note that the money used by
the Federal Deposit Insurance Corporation to repay de­
positors in defunct banks is money which has been pro­
vided by the banks themselves and not funds collected
through taxes. . . . There is no need for people to have
any fear about the stability of a well managed bank.”
Auditing Procedures Outlined

Banks have found in recent weeks that a need exists
for re-emphasizing the soundness of their institutions, so
that people will not lose their confidence in banks, and
to prevent any competitive advantage from going to other
types of financial organizations.
The current glare of publicity is serving as a spur to
review of internal policies and procedures. To assist
executive management in this respect, the N orthwestern
B anker published in the February issue a special article
titled, “ Is Your Bank Auditing Effective?” It was writ­
ten by a member of a prominent C.P.A. firm and outlines
the steps needed in carrying out effective examinations
by the bank’s board of directors.— End.

29

The Hanker
And His Community
(Or: “A Philosophy fo r Bankers ”)

E

VERY person, whether he cares
to admit or not, has a philos­
ophy of life. For without a phi­
losophy, man’s life could be likened
to the existence of a robot which wan­
ders around aimlessly. It never quite
gets to where it wants to go. An in­
dividual’s philsosophy of life is his
reason for existence. His philosophy
reveals to him an objective and then
predetermines his actions and plan­
ning so that that goal might be
achieved.
A banker’s philosophy must be more
comprehensive and more productive
than that of an ordinary man, because
of the unique position he holds in his
community. He is respected; his ad­
vice is sought, not only in money mat­
ters, but also in day to day affairs.
Because of this his influence tran­
scends his own family and affects the
entire community. The four most im­
portant people in any town are the
clergyman, the doctor, the teacher and
the banker.
Must Take a Stand

The banker should make himself
available for any good cause. A bank­
er can’t serve actively on every pro­
gram, but he can make his opinion and
feelings known, after careful delibera­
tion is given to all factors. The bank­
er’s position in his community would
be soon lost if he were noncommittal
on matters of importance.
There will be differences of opinion.
But in resolving them, the banker will
display wisdom, kindness, and trust­
worthiness.
A great trust is given every banker.
It emanates from three sources. The
depositors, the stockholders, and the
community. People from every walk
of life show great faith in their bank­
er when they entrust to him their hard
earned dollars.
Circle of Benefits

As the banker, a man is an agent
for his depositors. He must use their
funds to benefit the very depositor

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

himself, as depositors in reality bor­
row their own money and utilize it
for their own benefit and for that of
others. This resembles a circle, with
one factor working with and helping
the other.
The banker has received a great
trust or responsibility from the stock­
holders, for they elect the directors
and the directors appoint the officers.
What does the stockholder expect
from the banker? He expects the
banker to be prudent, trustworthy, in­
telligent and perform his duties in
such a manner as to promote the con­
tinual growth of the bank. The share­
holder has the right to expect the
banker to use the deposited funds in
a productive way to further enhance
the shareholder’s investment.
A Director’s Obligations

A good director is one well versed
in his field, yet aware of his limita­
tions, and possessed, at the same time,
with a goodly amount of common
sense. A director has grave responsi­
bilities and obligations, and in the
exercise of these perogatives, he must
give the benefit of his knowledge and
experience to those who are acting
for him. The banker must accept the
decision of his directors and act ac­
cordingly. Once the directors have
examined a situation and decided upon
a mode of action, the banker is under
an obligation to follow it.
The banker can wield great influence
in naming new directors. In this ac­
tivity, he must once again dismiss
personal likes and dislikes. He must

be objective. He must act for the
good of the bank and get a board
which is representative of the com­
munity. A rural bank needs a board
made up principally of men engaged
in agricultural activities just as a city
bank needs a board composed of men
engaged in business in the area. A
director must represent his people
and their interests. Directors can help
the banker and they must help if they
are to fulfill their responsibilities.
The Banker’s Community

Obligations of the banker to his
community is the third facet of this
threefold trust and most comprehen­
sive in its application. Man was made
to be a part of society. He was made
to work with his fellowmen to achieve
an objective—a better society today
than we had yesterday and even a
greater one tomorrow. Bankers must
be part of the society in which they
live and help mold its thinking. In
order to do this, they must take a
leading role in their community. If
they do not, they neglect their trust
. . . and in the banking fraternity,
this is a grave omission.
Must Be a Leader

Anything which directly influences
or affects the community must com­
mand the banker’s attention. Bankers
must make time to serve their people
whenever help is needed, for as an
individual who holds a unique position
among his constituents, he can truly
BANKER AND COMMUNITY . . .

(Turn to page 51, please)

By C. H. REILLY, JR.
Assistant Cashier
Drovers National Bank
Chicago, Illinois

Northwest ern Banker, March, 1961

30

J. J. CR OUCH

J. P. A N D E R S O N

E. G. G E A R H A R T

H. W . L E W IS

R. A. B A C H IE

V . E. S C H W A E G E R L E

Hoir to Get M ore Business for
j

ANKERS throughout the nation are invited to at­
tend the Midwest Regional Conference sponsored
by the Financial Public Relations Association at
Hotel Kirkwood in Des Moines on Monday, April 10.

CLINIC 1
“Business Development Through Advertising”

“How To Get More Business for Your Bank” will be
the theme of the challenging, idea-packed, one-day pro­
gram. Outstanding speakers will discuss important
phases of business development, public relations, adver­
tising, merchandising and staff training.
Non-members of F.P.R.A. are especially welcome to at­
tend the conference. A single, useful idea can often be
worth much more to a bank than the cost of the con­
ference, which is only $20 if registration is made in ad­
vance. Registration the day of the meeting will be $22.50.
There are no additional charges for non-members.
An Early Bird Party is scheduled for Sunday evening,
April 9, from 6 to 8 p.m., to provide an opportunity for
early arrivals to get acquainted and to visit with F.P.R.A.
officers and board members.
Hotel reservations should be made directly with Hotel
Kirkwood, the Conference headquarters.
The complete program follows:

P.M.
2:15-3:15 Panel Discussion.
Radio-Television—William J. Connally, sales man­
ager, WBBM Radio, Chicago.
Direct Mail—F. R. Collins, Direct Mail Division,
Ruben H. Donnelley Corporation, Hinsdale, 111.
Recess.

B

Sunday, April 9
P.M.

2:00-6:00 Registration.
6:00 Early Bird Party.
7:00 Buffet Dinner.

Moderator—Richard C. Lee, vice president, Capital
City State Bank, Des Moines.
>

y

Monday, April 10

LM.
8:00 Registration.
9:00

Coffee Break.

Sponsored by the N orthwestern

B anker .

10:00 Welcome—Calvin W. Aurand, president, Iowa-Des
Moines National Bank, and president, Des Moines
Clearing House Association.
Presiding—Jordan J. Crouch, president, Financial
Public Relations Association, and vice president,
First National Bank of Nevada, Reno.
Panel addresses by F.P.R.A. officers:
“What Advertising Can Do for You”—Harold W.
Lewis, third vice president, and vice president,
First National Bank of Chicago.
“How Publicity Can Be a Business Getter”—John
P. Anderson, first vice president, and vice presi­
dent, First National Bank of Passaic County, Pat­
erson, N. J.
“Calling for More Business”—Ernest G. Gearhart,
Jr., second vice president, and vice president, First
National Bank of Miami, Fla.
“Increasing Earnings Through Business Develop­
ment” — Robert A. Bachle, treasurer, National

Boulevard Bank, Chicago.
“The F.P.R.A. Story” — Vernon E. Schwaegerle,

E. F. PE T E R S

R. C. L E E

N orth
estern Banker, March, 1961
Digitized
forwFRASER

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Federal Reserve Bank of St. Louis

C. W . A U R A N D

executive vice president of the F.P.R.A., Chicago.
P.M.
12:30-2:00 Luncheon.
“Better Understanding”—Jordan J. Crouch, presi­
dent of F.P.R.A.
r

31

W . J. C O N N E L L Y

F. R. C O L L IN S

J. F. Q U IN N

3:30-4:30 Outdoor Advertising—James F. Quinn, Edward
H. Weiss & Company, Chicago.
Newspaper—George Dempesy, Director of Public
Relations, American National Bank and Trust Com­
pany, Chicago.
CLINIC 2
“Business Development Through the Selling of
Services”

Moderator — G. Reed Macomber, vice president,
American National Bank, St. Paul.
2:15-3:15 Panel Discussion.
Trusts—John J. Cockle, trust officer, Omaha Na­
tional Bank, Omaha.
Mortgage Loans—Art J. Burke, assistant vice pres­
ident, Northwestern National Bank, Minneapolis.
3:30-4:30 Installment Loans — Lehman Plummer, vice
president, Central National Bank & Trust Com­
pany, Des Moines.
Deposit Accounts and Staff Sales—Robert W. Wil­
liams, assistant vice president, LaSalle National
Bank, Chicago.
CLINIC 3
“Business Development Through Sales Effort”

Moderator—Thomas O. Cooper, president, Jeffer­
son State Bank, Jefferson, Iowa.

g.


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Federal Reserve Bank of St. Louis

R. M A C O M B E R

G. W . S T E A G A L L

W . BUXTON

2:15-3:15 Panel Discussion.
In Agriculture — William Buxton III, president,
Peoples Trust & Savings Bank, Indianola, Iowa.
How to Contact and Sell Newcomers — Guy W.
Steagall, assistant vice president, Harris Trust &
Savings Bank, Chicago.
Recess.

Your Hank

R. W . W IL L I A M S

G. H. D E M P E S Y

j.

R. CO C KLE

3:30-4:30 Officer Calls—Roland Tornblom, executive vice
president, City National Bank, Council Bluffs,
Iowa.
Developing the Business Man—Banker Team—Ed­
win F. Peters, First Federal State Bank, Des
Moines.
Robert E. Dreher, attorney, Brunk, Janss & Dreher, Des Moines.
Albert A. Augustine, certified public accountant,
Augustine & Company, Des Moines.
6:00

Social hour.

7:00 Banquet.
Speaker—Joseph W. Barr, assistant to the Secre­
tary of the Treasury, Washington, D. C.
COMMITTEE
General Chairman—Edwin F. Peters, executive

vice president, First Federal State Bank.
Program—Richard C. Lee, vice president, Capital
City State Bank.
Attendance—Jim Rasley, assistant vice president,
Iowa-Des Moines National Bank.
Registration — Woodrow W. Westholm, assistant
vice president, Iowa State Bank.
Reception—George Nelson, assistant cashier, Cen­
tral National Bank and Trust Company.
Publicity — Malcolm K. Freeland, president, the
N orthwestern B anker .

Entertainment—John B. Monahan, assistant vice

president, Bankers Trust Company.
Finance—Allon E. McGlothlen, assistant vice presi­

dent, Valley Bank and Trust Company.

L. P L U M M E R

T. O. C O O PER

A. J. B U R K E

Northwest ern Banker, M arch , 1961

32

H a n k ers Y ou K n o w

Edward IV. Lyman
President
The United States National Bank of Omaha
Omaha, Nebraska

“The development and training of personnel is one of
our most challenging problems.”

UST 25 years after his graduation
from the University of Nebraska,
Edward W. Lyman was selected by
the board of directors of the United
States National Bank of Omaha in De­
cember, 1959, to serve as president of
the bank.
A native of Lincoln, Nebraska,
where he was born September 8, 1911,
Ed Lyman joined U. S. National in
1940 after having been associated
with the First National Bank of Chi­
cago for four years. In his progres­
sion through various officer positions
of responsibility he evidenced the
qualities of leadership that an alert
management was quick to recognize.
He was named to the board of di­
rectors in 1952, having been vice pres­
ident since 1948. His advancement
to executive vice president followed
in 1956, giving him wider areas of
management in which to increase his
executive experience before his elec­
tion as president at the close of 1959.
The selection of Ed Lyman by the
directors was commended heartily in
all quarters. His business associates
inside and outside the bank appraise
him in this way:
“Ed has a high sense of ethics, and

J

Nort
ern Banker, March, 1961
Digitized
forhwest
FRASER
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Federal Reserve Bank of St. Louis

is fair in all ways. He will not com­
promise his ethical standards for busi­
ness reasons. He has a solid back­
ground in banking fundamentals. He
favors simplifying banking procedures,
to eliminate unnecessary detail, and
to make it easy for the public to un­
derstand and use bank services.
“ Ed believes in delegating author­
ity and does not ‘second guess’ his as­
sociates. He is a good listener and is
always willing to hear and discuss
problems and offer suggestions.”
Through his work in various depart­
ments, Mr. Lyman learned well the
value of “team work” in a bank the
size of the U. S. National. He relies
heavily on this same “team work”
concept in carrying out his respon­
sibilities as president. To maintain
this concept, he considers the devel­
opment and training of personnel to
render better and more personal
service to customers, both large and
small, as one of the banking industry’s
most challenging problems of today.
He feels “the competition for money
among various financial institutions is,
and will continue to be, keen. We must
constantly endeavor to broaden our
present services and create new

ones. At the same time, we should
price these services so that a reason­
able profit is realized, rather than
give them away in order to obtain
a ‘temporary’ advantage over a com­
petitor.”
Ed Lyman’s friends of many years
know that in sports as well as in busi­
ness, he is a real competitor. If it’s a
competitive sport—he enjoys it, ex­
celling at golf, bowling and bridge.
He has the top average in one bowl­
ing league and usually has the best
score among a group of six old friends
who have met and bowled together
since their Jaycee days, a period of
about twenty years.
Because of the zest with which Mr.
Lyman approaches any challenging
task laid before him, and the ener­
getic drive he expends in getting the
job done, he has been asked to serve
civic and charitable organizations
many time. Presently, he is trustee
of the Nebraska University Founda­
tion, Children’s Memorial Hospital,
Nebraska Citizens Council and Coun­
tryside Community Church; director
BANKERS YOU KNOW . . .

(Turn to page 60, please)

" M y b a n k e r s a y s ...
. . . the fast w a y to get livestock
proceeds back home from the Chicago
market is to have Live Stock National
handle the transaction”

3A e

LIVE STOCK
4150 South Halsted Street, Chicago, Illinois
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION


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

You know how careful a banker must be about express­
ing an opinion. Words from you carry a lot of weight.
We know this, too. That’s why we are particularly
careful that the Live Stock Bank always serves you in
a way that is most advantageous to you and your shipper.
In collecting and transferring livestock shippers’
proceeds, this bank has unrivaled experience. Over the
years we have perfected what we sincerely believe to
be the fastest, most accurate procedures.
If you are not already acquainted with our Shippers’
Service, we will be happy to have our man in your area
call and give you full details. If you are one of the many
banks that are presently suggesting this service to
their customers, we thank you.

SERVING INDUSTRY AND AGRICULTURE FOR OVER NINETY YEARS

34

R ev en u es Top

M illion

ECORD revenues, earnings and president, showed taxes paid out by
taxes were reported to share­ the company at a record $9,631,000 or
holders of Iowa Power and Light Com­
19 cents for taxes on each revenue
pany, Des Moines-based electric and dollar.
natural gas utility serving the state
L.
E. Slade, who formerly served
c a p ita l city and the company as financial vice presi­
the central and dent, has been elected to the office of
southwest areas senior vice president. He will direct
of Iowa.
the operation of the company, includ­
ing customer relations and service,
Reve nues
topped $50 million and the production, transmission and
for the first time distribution of electricity and gas.
as this largest of
Iowa utilities con­ New Chemical Officers
tin u e d to show
Richard E. Nelson and Robert Simp­
b u sin e ss expan­ son have been appointed assistant vice
sion in keeping presidents of the international division
L. E. SL A D E
w ith in d u s tr ia l of Chemical Bank New York Trust
and population growth of its service Company, it was announced by Chair­
area. Climbing revenues have marked man Harold H. Helm.
the company’s reports for many years.
Mr. Nelson, an alumnus of Kansas
Revenues were $51,140,000, up 9.8 per State College and the American Insti­
cent over 1959.
tute of Banking, began his banking ca­
Net income advanced 10.1 per cent reer in 1946 with the former Continen­
over 1959 at $5,553,000 with par share tal Bank & Trust Company. He has
earnings on common stock up to $2.20 been with Chemical New York since
from $2.06 the previous year.
1957 where he became assistant secre­
The annual report issued over the tary in 1960. Mr. Simpson was gradu­
signatures of N. Bernard Gussett, ated from the School of Public and
chairman, and A. Paul Thompson, International Affairs at Princeton Uni-

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O M A H A 2, NEBR.
Digitized
forhwest
FRASER
N ort
ern Banker, M arch , 1961
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

versity in 1947. He joined the bank in
1956 and was named an assistant man­
ager in 1959.

Interstate Finance Reports
Record Volume in 1960
Interstate Finance Corporation, Du­
buque, Iowa, reported a record volume
of $76,803,172 for the fiscal year ended
November 30, 1960, at the 36th annual
stockholders’ meeting held January 24,
1961. This volume represented an 11
per cent increase over 1959 but net
earnings of $413,421 or $2.26 per share
declined from the previous record
high in 1959 of $497,464 or $3.11 per
share.
A $2,221,103 increase in total capital
funds to an all-time high of $10,745,363
was re p orted , w ith stockholders’
equity increasing to $5,345,363 from
$5,124,260 the previous year. During
the year $1,000,000 of subordinated
capital debentures were sold to resi­
dents of Iowa and $1,000,000 of subor­
dinated promissory notes were sold to
an insurance company.
The company opened three new of­
fices during the year, D. B. Cassat,
president, stated, and at year end op­
erated 32 locations in the states of
Iowa, Illinois, Wisconsin, Kansas, and
Oklahoma.

Irving Trust Promotion
William W. Inglis has been appoint­
ed an assistant secretary of the Irving
Trust Company, New York.
Mr. Inglis joined the bank in 1955.
He is currently associated with the
national division, engaged in lending
and customer activities in the western
section of the nation.

To Head Bond Club
Hardin H. Hawes, senior vice presi­
dent, Harris Trust and Savings Bank,
Chicago, has been nominated for presi­
dent of the Bond Club of Chicago, as
the organization celebrates its 50th an­
niversary year. Mr. Hawes is in
charge of the investment division of
the Harris Bank.

New Bond Department
Newell S. Knight has been elected
vice president of the First National
Bank in St. Louis and will direct the
bank’s newly created municipal bond
department.
Mr. Knight retired last month from
Mercantile Trust Company in St.
Louis, where he had been a staff mem­
ber since 1944 and vice president in
the bond department since 1950. He
began his banking career with the
Harris Bank in 1919.

35

B U R R O U G H S C O R P O R A T IO N

AN N OUN CES

T H E B 5 0 0 0 , W H IC H S E T S N E W S T A N D A R D S
IN P R O B L E M S O L V IN G & DATA P R O C E S S IN G
The new Burroughs B 5000 Information Processing
System is marked by dramatically different machine
logic and language. It is a decided departure from con­
ventional computer concepts and sets:
NEW STANDARDS OF PROGRAMMING EFFICIENCY. The
B 5000 is the first system specifically designed for efficient
use of ALGOL and COBOL. It compiles 20-50 times faster
than any other computers. Result: unprecedented savings
in programming cost and time.
NEW STANDARDS OF PROGRAM-INDEPENDENT MODULARITY.

Any B 5000 program works with any B 5000 system con­
figuration. And you can add memory modules, input/output units—even a functionally independent second central
processor. Result: you can gear system expansion to work­
load growth, without reprogramming; you are protected
against obsolescence.
NEW STANDARDS OF EFFECTIVE MULTIPLE PROCESSING.

The B 5000’s normal mode of operation is automatic
multiple processing of related or unrelated problems.
Programs that are written independently can be processed
simultaneously. Result: minimum idle component time,

maximum self-regulating system efficiency.
NEW STANDARDS OF AUTOMATIC OPERATION. The
Burroughs new B 5000 incorporates complete operating,
monitoring and service routines; automatically schedules
work and assigns memory and input/output units. Result:
system idle time and human intervention are held to a
minimum—important time and dollar savings.
NEW STANDARDS OF SYSTEM COMMUNICATION. The new
B 5000 features complete, fully flexible communication
among its com ponents, permits simultaneous online/off-line operation. Result: greater flexibility and
reliability in systems use.
NEW STANDARDS OF THROUGH-PUT PER DOLLAR. The
B 5000 also offers three microsecond add execution time
and six microsecond memory cycle time. It reads 800
cards per minute, prints 700 lines per minute. And it’s
solid state, of course. This large-scale performance is
available to you in the medium-price range.

For details in depth, call our nearby office now. Or write
Burroughs Corporation, Detroit 32, Michigan.
Burroughs— T M

B u rro u g h s

C o r p o r a tio n

"N E W DIMENSIONS / in electronics and data processing systems”


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Federal Reserve Bank of St. Louis

Northwest ern Banker, M arch , 1961

36

Heads Bond Division

See for yourself WHY

FARMING FOR PROFIT
is today’s most widely-used
Bank Service Report
Doane wants to send you a FREE
copy of the latest “ Farming For
Profit” Report. Read it—discuss it
with your associates—show it to a few
key customers, and we are sure that
you will recognize it as a valuable ad­
dition to your bank’s educational and
public relations program. “ Farming
For Profit” is a concise, accurate
monthly outlook that covers all sides
of farming—crops, livestock, machin­
ery, buildings, taxes, leases, soils, fer­
tilizers, ag chemicals. “ Farming For
Profit” will provide your customers
a monthly forecast of market trends,
plus good sound advice on production
and farm management problems.

First National City Bank, New
York, has announced the appointment
of D elm on t K.
Pfeffer as senior
vice p re s id e n t.
Mr. Pfeffer is in
c h a r g e of the
bank’s bond divi­
sion.
A graduate of
Syracuse Univer­
sity, class of 1923,
he served as an
d . k . pfeffer
instructor of eco­
nomics at Emory
University, Atlanta, Ga., and then as
assistant manager of the municipal
department of the Guaranty Company
of New York. He came to National
City in 1934 and has since been asso­
ciated with management of the bond
division. He was appointed vice pres­
ident in 1942.

Marina City Financing

Your bank name, illustration, and
message are printed prominently at
the top of each report. Doane can
handle all the details of addressing
and mailing the reports to your cus­
tomers. Doane offers this service re­
port to only one client in a particular
trade territory.

Continental Illinois National Bank
and Trust Company is providing $17,819,100 of interim financing on the
Marina City project, construction of
twin 60-story skyscraper apartment
towers near Chicago’s loop.
John F. Mannion, Continental senior
vice president, said the mortgage is
the largest single Federal Housing Ad­
ministration loan closed in the Chica­
go area.
In addition to the FHA-insured,
twin circular towers, Marina City will
include a commercial project with a
10-story office building. The towers
will contain 896 apartment units and
garage space. Commercial facilities
available will be offices, restaurants,
a marina for 700 small craft, theater,
bowling alley, swimming pool and
skating rink. Site of Marina City is
on the north bank of the Chicago
River between State and Dearborn
Streets.

100th Anniversary

GALE
DORN,
agricultural
representative,
Northwestern Bank of Lewistown, Lewistown,
Montana:
“ Our customers frequently com­
ment on the value they receive from this
monthly letter. It is short, concise and con­
tains a lot of useful information. We have
had a lot of folks come in and ask to be
added to the mailing list because their neigh­
bor was getting ‘FARMING FOR PROFIT’ .”

W rite for FR EE sam ple
Clip this ad . . . staple it to your letterhead
and jot down the number of farm customers
your bank serves. We will send you a sample
copy of the latest “ Farming For Profit” Re­
port, along with quantity prices.
DOANE AG RICU LTU RA L SERVICE, INC.
Dept. F-103, 5142 Delmar, St. Louis 8, Mo.

Northwest
ern Banker, March, 1961

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

Nearly 7,000 commercial banks have
pledged participation in a nationwide
observance of the 100th anniversary of
the dual system of banking in 1963.
Bank subscriptions for the centennial
observance now approximate $160,000.
These developments were reported
by the Centennial Commission of The
American Bankers Association, co­
ordinator of planning for the celebra­
tion, following a meeting here this
week. Ben H. Wooten, chairman of
the board, First National Bank in
Dallas, Texas, is Commission chair­
man.

Orders Equipment
City National Bank & Trust Com­
pany, Kansas City, has placed an order

for electronic equipment to be in op­
eration by the end of 1961. The order
includes five magnetic tape units for
storage of information and high speed
processing of data, a transistorized
computer with a storage capacity of
12,000 characters, a high speed printer
and reader-sorter which reads Arabic
figures printed on checks with mag­
netic ink at speeds up to 950 a min­
ute. An additional floor will be added
to the City National garage to house
the equipment.

Burroughs Sets Record
Burroughs Corporation’s world-wide
revenue in 1960 was $389,210,550,
compared with $359,778,068 in 1959.
This is the eleventh consecutive year
that revenue has attained a new high.
Net earnings for 1960, after taxes,
were $9,235,867, or $1.39 per share,
based on the average number of
shares outstanding. This compares
with $7,109,567, or $1.07 per share, in
1959 after a non-recurring writeoff.
Net income t a x e s amounted to
$8,304,000 for 1960, compared with
$5,061,000 in 1959.
Every product category and every
operating division contributed to the
revenue growth.

Observes 25tli Year
Gilbert J. McEwen, assistant cash­
ier of the Harris Trust and Savings
B a n k , Chicago,
was honored re­
cently on his 25th
anniversary with
the bank. Ken­
neth Z w ie n e r,
president, and Les­
ter Armour, v ic e
ch a irm a n , pre­
sen ted Mr. Mc­
Ewen w i t h an
anniversary
wristwatch.
“Gil” is widely known by Iowa
bankers through his travels as a
member of the correspondent bank
department of the Harris Bank. For
the past three years, he has served
as an administrative assistant on the
staff of the School of Banking, Uni­
versity of Wisconsin, and is affection­
ately known to many Iowa bankers
as “housemother.”

y

To Travel Iowa
Robert C. Midgley has been named
state agent in northwestern Iowa for
the St. Paul Western Insurance Com­
panies. He will make his headquarters
in the Des Moines office under the
supervision of Iowa manager, M. Toussaint.
Mr. Midgley has been associated
with the St. Paul for many years,
traveling in the eastern areas of the
nation.
t-

37

A re Y o u r F u n d s too long in T r a n s it ?
One million checks— or more— spin through the 136 IBM proof machines in our Central
Clearance Department each day. This department, staffed by more than 400 skilled employees,
works 24 hours a day, including Saturdays and most holidays. Our correspondent banks thereby
obtain the benefit o f earliest possible presentation ot their items.
In addition, Manufacturers Trust Company has developed a number o f other “ availability
aids,” including:
• Individually imprinted 3-part carbon­

• Air mail pouch stickers, with frequent
airport pickups.

less cash letter forms.
• Self-addressed cash letter envelopes in
several sizes to meet the volume needs

• Hourly pickup o f cash letters from a
24-hour post office.
• Direct sendings to non-Federal points.

o f the individual bank.

Let us write you in more detail about the advantages o f using Manufacturers Trust Company
for cash letter and collection sendings. Just tear out this advertisement and mail it to National
Department, Manufacturers Trust Company, 44 Wall Street, New York 15, N. Y .

M

anufacturers
HEAD
44

WALL

STREET,

T

C

rust

ompany

OFFICE :
NEW YORK

15,

N. Y.

Member Federal Deposit Insurance Corporation


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

Northwest ern Banker, March, 1961

38

Four B of A Promotions
Promotion of four Bank of America
vice presidents to more senior duties
was announced by President S. Clark
Beise.
Clyde O. Phillips, vice president
manager of the Oakland main office,
has been named assistant to the pres-

C. O. P H IL L IP S

E. A. M A Z Z E R A

ident at the bank’s head office in San
Francisco.
Vice President Elmo A. Mazzera, at
the Oakland main office since 1952, has
been selected to succeed Mr. Phillips
as vice president manager.
Two promotions occurred at the
bank’s head office:
Vice President-Secretary D. Stanton
Langsdorf has been appointed vice
president administrative officer for the
bank’s recruitment, training and de­
velopment program.
Vice President Lawrence D. Pritch­
ard, in charge of public relations since
1956, has been selected for the post
of vice president-secretary.
One hundred and eleven years ex­
perience with Bank of America is
shared by the four senior executives.

M cL E A N

GOODERHAM

HUNTER

Mr. McLean will be succeeded in
Winnipeg by William G. Gooderham,
previously assistant manager of busi­
ness development in Vancouver, while
Mr. Gooderham’s post in Vancouver
will be taken over by John H. Hunter,
from the superintendent’s department
in Calgary.

Retires After 31 Years

John W. Nichols, senior vice presi­
dent of Continental Illinois National
Bank of Montreal business develop­ Bank and Trust Company, retired re­
ment appointments in Winnipeg, To­ cently after more than 31 years of
service. He was
ronto and Vancouver have been an­
in charge of the
nounced.
b a n k ’ s customer
D. Lloyd McLean, formerly manager
and c o r r e s p o n d ­
of business development in Winnipeg,
e n t relationships
has been appointed assistant superin­
in the midwest
tendent in charge of the business de­
and w e s t e r n
velopment department in the office of
states.
the assistant general manager, To­
B orn in Cass
ronto.
County, Iowa, Mr.
Nichols began his
banking career in
J. W . N IC H O L S
1917 at A n i t a ,
Iowa, and two years later helped or­
ganize the Walnut (Iowa) State Bank.
He joined the Continental Bank in
1929 and was elected assistant cashier
in 1935, second vice president in 1939,
vice president in 1943, and senior vice
president in 1954.

B of M Appointments

L. D. PR IT C H A R D

D. S. L A N G SD O R F

For Y o u r

A N A D IA N
Patent, Copyright
and Tradem ark...

regulations are outlined in " Y o u r G u id e to B u s i ­
ness in Can ada, ” just published as a service to
American executives by Canada’s First Rank
Many other essential subjects, including Canadian
taxes and company formation, are discussed.
This booklet is one of a number of B of M publi­
cations which may help you render broader service to your Canadian-minded customers. For a
free copy write on your bank letterhead to our
nearest U. S. office or to the Business Develop­
ment Department, Head Office, Montreal.

ITO2M
ILLIONCAN
ADIAN
S

0

BÛ)

Ba n k or M o n t r e a l
(panada 4

‘S aeté (?o a 4 t-fo -(fa tet

Honor Phoenix Banker
George V. Christie, former vice pres­
ident of First Na­
tio n a l B ank of
Arizona, has been
named “ Man of
the Year” by the
Phoenix Advertisi n g C l u b (Ari­
zona).
Mr. C h ristie,
who retired last
June as vice pres­
ident in charge of
G. V. C H R IS T IE
p u b lic relations,
is now Arizona Director, U. S. Depart­
ment of Commerce.

B R A N C H E S IN A L L TEN P R O V IN C E S

Di st ric t H e a d q u a r t e r s :
Halifax, Toronto, Winnipeg, Calgary, Vancouver
N E W Y O R K :T w o W a ll St.
•
S A N F R A N C IS C O : 333 C a lifo rn ia St.
C H IC A G O : S p e cia l R e p re se n ta tiv e 's O ffice, 141 W est Ja c k so n B lv d .

'yfyead ó fótce: "TJfoxtreai
850 BRANCHES IN CANADA, U .S ., GREAT BRITA IN AND EUROPE

Northwest ern Banker, March, Î961


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

•

RESOURCES EXCEED $ 3 .3 0 0 ,0 0 0 ,0 0 0

Honor George Champion
George Champion, chairman
board of The Chase Manhattan
has been elected as a member
board of the Commerce and
try Association of New York.

of the
Bank,
of the
Indus­

39

T h ey

ca n

h e lp

y ou

k eep

th e

b u s in e s s

d o w n o n t h e f a r m . Getting facts at the source, the
Harris keeps up to date on the changing farm economy. This is
one w ay w e help our correspondents. H ow can we help you?

H A R R IS “

B A N K

Organized as N . W . Harris & Co. 1882— Incorporated 1907— Member Federal Reserve System . . . Federal Deposit Insurance Corporation

111 WEST MONROE STREET —CHICAGO 90

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

Northwestern Banker, March, 1961

40
Federal Reserve, K. C.
H. G. Leedy, president of the Fed­
eral Reserve Bank of Kansas City for
nearly 20 years, retired recently as
head of the Fed. He will join the
City National Bank and Trust Com­
pany, Kansas City, on May 1 as a sen­
ior officer in the trust division.

H. G. L E E D Y

G. H. CL AY

George H. Clay, vice president and
general counsel, will be the new Fed
president. He joined the Kansas City
Fed in 1958 after serving in an execu­
tive capacity with TWA.
Mr. Leedy’s service as president is
longer than that of any other chief
executive officer of the bank and only
four other presidents preceded him
since the Federal Reserve Bank opened
in 1914. His association with the
bank spans a period of 37 years. He
joined the bank’s staff in 1924 when

he served as counsel, and in 1938 he
was appointed vice president and
general counsel, the position he held
until he became president in 1941.
In other action, the Board of Gov­
ernors of the Federal Reserve System
in Washington, D. C., appointed four
new directors—one to the head office
board at Kansas City and three to
branch boards. In addition, the Board
of Governors redesignated Mr. Hall,
partner in a Kansas City law firm,
as chairman of the head office board
and named the new Kansas City di­
director, Homer A. Scott, vice presi­
dent and district manager of Peter
K ie w it S o n s ’ Company, Sheridan,
Wyo., as deputy chairman of the
board.
Mr. Scott is not a newcomer to the
F e d e r a l Reserve System, having
served as a director of the Omaha
branch. He replaces Joe W. Seacrest,
president of the State Journal Com­
pany, Lincoln, Neb., who also was
deputy chairman of the head office
board. Mr. Seacrest was not eligible
for reappointment under the policy of
the Board of Governors to rotate the
terms of Class C directors.
Appointments by the Board of Gov­
ernors to branch boards include the
naming of Clifford M. Hardin, chan­
cellor of the University at Lincoln, to

replace Mr. Scott as a director of the
Omaha branch. At the Denver branch,
Robert A. Burghart, rancher and
real estate dealer of Colorado Springs,
will replace Ray Reynolds of Long­
mont, Colo., who was ineligible for
reappointment. On the Oklahoma City
board, Otto C. Barby, attorney and
rancher of Beaver, Okla., will succeed
Don H. Dennis of Grady, Okla.

Top Executive Changes
Robert Brookings Smith has been
elected vice chairman of the Mercan­
tile Trust Company, St. Louis. He has
been a director of
the b a n k and
joined the trust
department as a
vice president in
1956.
The bank also
a n n ou n ced the
election of Ray­
mond H. Rulkoetter as comptrol­
ler, succeeding C.
L. Moore, retired.
Mr. Rulkoetter has been assistant
comptroller.
Harrison F. Coerver, who came to
the bank’s credit department in 1935,
has been named as a senior vice presi­
dent.

W ith private wires uniting our own offices in all
3 Pacific Coast States, direct airport pickups, and
transit crews working through the night, we speed
c o lle c tio n o f y ou r item s th rou gh ou t the West.
SAN FRANCISCO and other California c it ie s .. . PORTLAND, Oregon. . . SEATTLE and
TACOMA, Washington • HEAD OFFICE: 400 CALIFORNIA STREET, SAN FRANCISCO 20

Northwest ern Banker, March, 1961


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

TH E BAN K OF
C A L IF O R N IA H

41

WHY

YOU

SHOULD

SECURITIES

WITH

KEEP YOUR
HANOVER

As a H anover correspondent, you enjoy these safekeeping benefits:
• Proximity to m ajor securities markets.
• Savings in postage and insurance charges.
• Portfolio review .
• Elim ination o f auditing details.
• C oupons clip p ed and maturities follow ed for you b y Hanover.
• Protection for your securities b y the same measures and
controls that safeguard our own.
Isn’t this the practical kind o f correspondent service y o u ’ve been
looking for?

X
TH E
X
H A N O V E R
B A N K
X

N E W Y O R K

/

Member Federal Deposit Insurance Corporation

Foreign Transactions • Portfolio Review • Snap-Out Carbon Checks • Air Mail-Pouch Loose • Letters of Credit • HANCORE Plan • Credit Information


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

Northwest ern Banker, March, 1961

42
Heads Branch Department
Senior Vice President E. N. Holgate,
former manager of First National
Bank of Arizona’s
main office, has
been named to the
b a n k ’ s new
B ran ch Expan­
sion Department.
Mr. Holgate will
direct and coordn
nate all of the
bank’s new con­
struction activity
as well as remodel­
ing or enlarging
of existing facilities.

New Foundation Members
More than 100 banks have enrolled
as new members of the Foundation
for Commercial Banks in the past 90

• OUR S EC O N D

days, according to L. M. Schwartz,
chairman of the Foundation and pres­
ident of Citizens State Bank, Paola,
Kan.
Enrollment of the new b a n k s
brought a record membership of
5,668 banks in the Foundation.

Tierney Heads Nebraska
Investment Bankers
Phillip J. Tierney was elected presi­
dent of the Nebraska Investment
Bankers Association at the annual
meeting at the Omaha Athletic Club.
Mr. Tierney is assistant manager for
Harris, Upham & Company.
Other officers elected were:
Hal F. Childs, Chiles-Schutz Com­
pany, first vice president; Eli C. Eisele,
Eisele, Raynor and Redelfs, second
vice president; John J. Bohrer, ChilesSchutz Company, secretary; Frank W.

C EN T U R Y OF S E R V IC E

T
h
em
a
nfro
mT
H
EF
IR
S
T
w
ithT
H
EM
O
S
T
...........
offers correspondent banks
unexcelled transit service...
the most ultra-modern facil­
ities to expedite your items
with accuracy...the friendly,
personal helpfulness with
which each correspondent’s
needs are cared f o r . .. all
available at The First He
welcomes the opportunity
to serve you. *

jjjfHlljl,I

T

he

F ir s t N a t io
of

•
nal

Ban k

Denver

Member Federal Deposit Insurance Corporation

N ort hwest ern Banker, March, 1961


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

Lawson, Wachob-Bender Corporation,
treasurer, and James H. Ellis, Ellis,
Holyoke and Company of Lincoln,
board member. Mr. Ellis was presi­
dent of the NIBA last year.
R. E. Misko, the new Director of
Banking for the state of Nebraska, and
Harold Johnson, assistant director,
were guests at the meeting.

SAVINGS SURVEY . . .
(Continued from page 27H. ISENSEE, president, United
• Home Bank & Trust Company,
Mason City, loAva:

R

“We started promoting savings in a
vigorous way in December of 1958 for
a 30-day period. At that time we of­
fered the choice of any one of four
premiums as a Christmas gift to those
who opened a new savings account of
$25 or more during December. Our
rate of interest was 2 per cent on sav­
ings and 3 per cent on certificates of
deposit.
“ In addition to large lobby signs,
this program was advertised in news­
papers, on radio and TV. Our employ­
ees and officers were all encouraged
to talk up the campaign to our cus­
tomers and other interested persons.
The results were very good with ap­
proximately 700 new savings accounts
being opened. Most of the accounts
have remained with us through the
ensuing two-year period.
“As the promotion was for new ac­
counts only, we started a second pro­
motion in March of 1959 which encour­
aged the opening of new savings ac­
counts or increasing present ones. In
addition, we raised our interest rate
on savings January 1, 1959, to 2% per
cent. We raised it again July 1 to 3
per cent.
The Second Promotion

“ This program was called the ‘Silver
Savers Club’ and for each deposit of
$25 or more to an existing account or
$25 or more for a new account, the
customer was entitled to one place set­
ting of International Silverplate Sil­
verware or International Stainless
Steel Silverware free. This was a con­
tinuous program and for each succes­
sive deposit of $25 or more, the cus­
tomer was entitled to purchase an ad­
ditional place setting of silverware at
only $2.25.
“The ‘Silver Savers Club’ has been
a continuous promotion from March
of 1959 to the present and we will con­
tinue to sponsor this program as long
as there is a demand for it. It is
a self-liquidation plan as far as the
bank is concerned.
“We have actively promoted this
program through periodic ads in the
f

43
newspaper, displays, TV and radio an­
nouncements. Our billboards point
out that we are paying 3 per cent
interest on savings.
“This program has been most suc­
cessful in our community and we
would recommend it to other banks
who are interested in promoting their
savings accounts. In the two years
we have been actively promoting our
savings department we have had a
30 per cent net gain in the number of
savings accounts together with a very
substantial gain in dollar volume.
“We are constantly looking for new
ways to promote our savings and sin­
cerely believe that some kind of a pre­
mium is an excellent way to encour­
age the opening of thrift accounts.”
OHN C. PETTEYS, vice presidentcashier, Security National Bank &
Trust Company, Faribault, Minn.:

J

“An all-out savings promotion built
around the theme, ‘May We Help You
Go Places Next Year?’ was conducted
at our bank from February 2 through
February 24.
“Each weekly savings deposit of
$10 or more entitled the customer to
a chance on one of the following
prizes: First, $100; second, $50, and
third, $25. The customer puts his
name and address on a slip which is
deposited in a box at the teller’s win­
dow and the drawing for prizes was on
the last day of the promotion—Febru­
ary 24.
“ In addition, the bank offered beau­
tiful colorful 21 x 29 inch posters, suit­
able for framing. Anyone visiting the
bank could choose his favorite vaca­
tion scene among these: New York
City, Cypress Gardens of Florida, San
Francisco, The Grand Teton Mountain
Range, Big Stone Mountain, Hawaii,
Chicago or Point Montank Lighthouse.
“ The lobby was decorated with un­
usual displays, featuring favorite vaca­
tion spots, along with approximate
costs of the various trips.
“We did not have an employee con­
test in connection with this promotion
although we have had them with other
promotions in the past and think it is
a good idea.
“At this writing, midway in the pres­
ent savings account promotion, we can
report that 355 depositors were eligible
the first week for the prize drawings.
The deposits for the week totaled $58,000 and 26 new accounts were started.
This does not compare as favorably
with last year’s campaign, which we
held about this same time, because of
the fact that we had one just a year
ago and also last year we had just in­
creased our interest on savings (Janu­
ary 1, 1960) from 1 per cent to 3 per
cent.”

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

THE STUDLEY, SHUPERT TRUST INVESTMENT COUNCIL
PROVIDES COMMUNITY BANK TRUST OFFICERS
WITH SERVICE AS PERSONAL AND INDIVIDUALIZED
AS YOU GET FROM YOUR FAMILY PHYSICIAN
It’s true! As a member of the Studley, Shupert Trust Investment Council,
you are an individual, a personality known by name to the Council Staff
. . . and the individuality, the trust objectives of each of your accounts
is equally well known.
Indeed, the relationship of Council Staff and Members becomes so in­
timate and confidential that it actually is closely akin to your relationship
with your family physician. And, like your family physician, the Council
Staff is available to you at all times, whenever an account problem arises.
Unlike your family physician, however, the Staff is not composed of
general practitioners. Instead, it is a group of competent, experienced,
trust-minded specialists. And their research facilities for studying and
analyzing the complications of individual account problems from a trust
viewpoint are second to none.
Also, unlike your relationship with your physician, your Council
Membership is not just an aid in times of emergency. Again and again at
frequent intervals, month after month, the Council sends you its easy-tounderstand, up-to-the-minute trust investment guide material designed to
help you keep all of your accounts in good health.
We will be happy to tell von rnore about the advantages of Council
Membership without you being obligated. Write today to Dept. NW-DB.

S T U D L E Y , S H U P E R T T R U S T IN V E S T M E N T C O U N C IL
1617 PEN N SYLVAN IA BLVD ., PH ILA D ELP H IA 3, PA.
155 B E R K E L E Y S T R E E T , B O STO N 16, MASS,

Northwest ern Banker, March, J9&I

44

A T IM E -T E S T E D , P R O F I T - M A K I N G
O P P O R T U N I T Y , IS Y O U R S W IT H O U R

Bankers Participation Plan!
Our tested B A N K E R S P A R T IC IP A T IO N P L A N has
been making worthwhile profits for over 40 years for
progressive Bankers throughout our territory.
Write us today for detailed information about the
many

popular

and

profit-making

opportunities

our

B A N K E R S P A R T IC IP A T IO N P LA N offers you. All
correspondence will be held in strict confidence.
Our New Topeka Office Building
Which Will Be Occupied
In 1961

• Write Today
Regarding
Currently
Available
Territories!

Enduring As Rushmore S V

|

H. O . CHAPMAN
President

S. H. WITMER

Our dynamic expansion
program makes excel­
lent territories immediatly available. Write
today for detailed in­
formation. All corre­
spondence confidential.

N ort hwest ern Banker, March, 1961


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

Chairman of the Board

Topeka • Sioux Falls

45

H oir Yon Yon tiri

Faster Service on Apps
A Northwestern Banker Survey

are intended to
give the insurance company
enough information to prepare
policies for delivery to insureds. Most
agents recognize the need for accu­
racy and completeness in making out
the applications, but frequently appli­
cations are incomplete or inaccurate,
with the result that policy preparation
is delayed and correspondence be­
tween company, agency, and insured
is set into motion. The confusion,
waste of time, and unnecessary work
are irritating and costly to the agent
and his insured as well as to the com­
pany.
The following items, listed below in
order of their frequency, cause most
difficulties experienced today in the
swift and efficient issuance of policies,
according to a survey recently con­
ducted by editors of the Northwestern
Banker:
1. Names and/or ages of other
drivers (auto).
2. No agent’s name on applica­
tion.
3. Failure to complete applica­
tion.
4. P. O. box number is not
enough for an address.
5. Incorrect spelling of names.
<>. Incomplete description of risk.
7. Incomplete car description.
8. No prior carrier listed for auto,
i). Poor handwriting.
10. U n u su al a n sw e rs not ex­
plained.
11. No (or wrong) address.
12. General unfamiliarity with ap­
plication.
Here’s what company men say about
errors on applications and how agents
can avoid them for faster service from
their companies:
John M. Shine, executive underwrit­
er, MERITmatic department, ZurichAmerican Insurance Company, Chi­
cago:
With electronic processing — which
is being used increasingly in the insur­
ance industry—application errors are
compounded, and an error which may
p p l ic a t io n s

A


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

be insignificant in a manual operation
may become staggering when fed into
the voracious maw of an indiscriminating machine.
We will never quite forget what
happened when we received an auto­
mobile application correctly prepared
in every respect but one: The agency

identification number had two digits
transposed. As this agency was new
to the company, no one caught the
error. The application was accepted
and processed electronically. And the
pile-up of error upon error began.
The submitting agent did not re­
ceive credit for the business, and the
agency whose number was used re­
ceived a commission check which did
not belong to it. Two commission
statements were out of balance. Later,
when the policy was terminated for
non-payment of premium, an expira­
tion notice was sent to the wrong
agent.
Incredible Complications

The amount of work and corre­
spondence required to offset this small
error was almost incredible. New
commission statements had to be pre­
pared, offsetting entry difference cards
had to be prepared, new electronic
data processing cards had to be pre­
pared, letters had to be sent to the
agents involved—all of this after we
were able to locate the agent who
owned the business.

Here are some typical examples of
other common application errors:
(a) The name of the insured is
misspelled or omitted.
(b) The policy expiration date is
obviously incorrect.
(c) The limits of liability are in­
correctly stated or omitted.
(d) The address of the insured is
wrong or omitted.
(e) The in s u r e d ’ s co u n ty is
omitted (few agents realize
how necessary this informa­
tion is for statistical pur­
poses.)
(f) The rating symbols have been
omitted or are incorrect.
(g) The premium totals are arith­
metically incorrect.
(h) The underwriting questions
are incorrectly answered.
(i) The questions are misunder­
stood, so that incongruous in­
formation is listed.
(j) Signatures required on certain
applications are missing.
Two General Errors
These errors can be divided into two
general groups — errors of omission
and errors of commission. The first
kind of error comes from a hurried,
careless approach to applications often
resulting from an unjustified, precon­
ceived notion in the mind of the agent
that insurance company applications
are totally unnecessary and a waste of
time. The second kind of error is
usually a typographical error—a mis­
spelled name or place, an incorrect
date, or an error in addition or multi­
plication.
Most serious to the insured is the
fact that his insurance, as recorded by
the company, may not be that which
was intended.
A 'practical suggestion to those pre­
paring applications is to complete all
portions and to review each applica­
tion before sending it to the company.
It will save time and expense for all
parties concerned.
As for the companies—they should
Northwest ern Banker, March,

1961

46

In su ra n ce

recognize the need of selling the agent
on the importance of applications.
They should correct false impressions
of the function of applications, and
they should keep their forms short
and simple.
Our company’s attempt to solve the
application problem is our “ SNAPAPP”—a new combined casualty ap­
plication pad. This is a 7 x 9 inch pad
containing an information index and a
multiple use application for most cas­
ualty lines. It is concise and clear in
its wording and small enough to fit
into an agent’s pocket. There are 50
sheets in the compact pad — 25 blue
sheets on one side for private passen-

ger automobile applications and 25
white sheets on the other side for oth­
er casualty lines. The covers—differ­
ent in color and design — indicate
which is the “auto side” and which is
the “other lines” side. By means of
“ SNAP-APP” we hope to lighten and
simplify the agent’s work, to decrease
the p r o b a b ilit y of error, and to
strengthen the insured’s confidence
both in the agent and in the company.
Don Silldorf, assistant vice presi­
dent, Combined Insurance Company
of America, Chicago:
Throughout the years in reviewing
applications, I have found that most
errors are a result of (1) agents who
are brand new to the business and (2)
those who have just made an associa­
tion with your company while writing
business for other companies. In ei­
ther event, the representatives are not
familiar with the application itself.
In analyzing this situation then, we
felt it necessary to redesign our appli­
cations so that a minimum number of
questions must actually be answered.
Where possible, make an affirmative
statement so that the applicant just by
signing has name, might attest to
these answers. We have also found
that a multitude of application forms
for specialty plans also lead to incom­
plete applications and therfore we
have standardized our applications to
four.
Basically, the incomplete application
is solved only with the complete coop­
eration of the home office underwriter
and the agent. The general lines agent
must understand our problem as well
as we must understand his.
The incomplete a p p lica tio n , of
course, with a new representative or

a new agent still is troublesome as it
does result in unnecessary correspond­
ence. But, we find as time goes on,
by having our field supervisor proper­
ly instructed, this problem is slowly
eliminating itself.
Charles Dixon, News Bureau, Aetna
Life Affiliated Companies, Hartford,
from information furnished by Aetna
Life Affiliated home office underwrit­
ers:
Automobile Underwriting — Most
frequent error is the omission of the
policyholder’s age and ages of other
drivers in the family, and omission of
past accident and violations record.
Another common error is the failure
to provide a complete description of
the vehicle for comprehensive mate­
rial damage and collision coverages.
For example, premium rates cannot
be established unless it is known
whether the car is a two-door or fourdoor. The lack of this information de­
lays issuance of the policy until the
agent can be contacted and asked for
the missing details.
Compensation, Liability Underwrit­
ing—Most common error in this field
is incomplete description of the risk.
For example, risk may be described
simply as a “machine shop,” with no
indication of the scope or type of its
operations. Next most common error
is failure to fix the policy period, usu­
ally by omitting the expiration date.
Less common is agent’s failure to in­
clude his own name. If the policyholder has other insurance with the
Aetna through this agent, the agent’s
identity usually can be determined
from the files. If it is new business,
however, the underwriter is faced
with the somewhat embarrassing task

In Printing . . .

'

5

5

*

It's t h e I m p r e s s i o n
T h at C ou n ts
NOW 1
IN OUR
Slst YEAR

AG EN T
IN Q U IR IE S IN V ITED

iilutualIfitr
auiiAutnuuilulp
d
(/ j
* JnJut UincM CO<■tnfuiniA
Established 1900

HOME OFFICE
CEDAR RAPIDS, IOWA
J. E. Wilson, President
J. M. Winchell, Secretary

A

if you want your letters, booklets, pamphlets and other
mailing pieces to make a favorable impression on your
prospects and customers, use the best printing papers
available.
Second best is never good enough. The finest quality
paper, from the Newhouse Paper Company, will make the
favorable impressions you need.
When you think of printing, think of the best in paper
stock. Consult with . . .

NEWHOUSE PAPER C O M P A N Y
"B etter
Minneapolis

Nort hwest ern Banker, March, 1961

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

St. Paul

P rin tin g P a p e r s "

Oes Moines

Moline

47
5 4 tA n n u a [ F i n a n c i a l S t a t e m e n t

Western Mutual Insurance C«.
616 10th STREET

-

DES MOINES, IOW A
A S S E T S

Cash ......................................................$ 614,659.51
U. S. Bonds (amortized value) ......... 4,349,150.76
Municipal Bonds (amortized value).. 3,326,554.83
Other Bonds (amortized value) .......
59,932.38
First M ortgages (none delinquent)..
173,497.89
Due from Agents (current balances)
681,386.73
Building and Loan Shares ...............
44,100.00
Real Estate O w ned ............................
487,088.72
Due from Reinsurance Companies ..
90,811.54
Accrued Interest on Investm ents.....
68,876.89
Cash Value of Life In su ran ce...........
58,361.05

For year ending
December 31, 1960

D IR EC T O R S

J. Dolliver Kent
Herman Jensen
Robert J. Kent
Harold B. West
Mont. S. Stokely
Albert H. Adams
Ronald C. Booth
J. Dolliver Kent, Jr.
Mark G. Thornburg

$9,954,420.30

6.2%
43.7%
33.4%
.6%
1.8%
6.9%
.4%
4.8%
.9%
.7%
.6%
100.00%

LIABILITIES

Current Bills ........................................ $
12,818.68
Current Reinsurance Premiums ..... 112,325.21
Taxes Accrued ....................................
261,684.03
Unearned Premiums .......................... 3,762,084.29
Reserve for Unpaid Losses ............... 1,022,606.15
Equity in Schedule "P" .....................
122,478.00
Special Reserve ..................................
45,547.06
Surplus .................................................... 4,614,876.88

Best's Insurance Guide
gives W estern Mutual
a general policyholders
rating of A-f- : A A

$9,954,420.30
Grow ing Since 1907 — Last 20 Y e a rs Com parison

December
December
December
December
December

31,
31,
31,
31,
31,

1940
1945
1950
1955
1960

Total Assets

Surplus

$ 425,609.53
1,192,414.42
4,224,919.47
7,261,899.21
9,954,420.30

$ 125,151.07
468,934.60
1,418,299.29
3,339,773.74
4,614,876.88

"A Multiple Line Non-Assessable Company"
>


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

Northwest ern Banker, March, 1961

48

In su ra n ce

of writing the policyholder and asking
him who his agent is.
Fire Underwriting — On residential
fire policies, the most common error is
failure to note the rate for the particu­
lar location.
Marine Underwriting —On marine
schedules, each item to be insured
must be described separately and in­
sured for individual amounts. While
properly lis t in g items separately,
agent will often give bulk amount of
insurance for all items instead of
breaking them down individually.
Minthorne M. Tompkins, assistant
manager, Pacific casualty and auto de­
partment, The Fund Insurance Com­
panies, San Francisco:
Submitting accurate and complete
applications is a most important step
in offering an insured good service.
The majority of errors in applications
are of a routine type and probably the
result of being “too close to the forest
to see the trees.”
Incorrect spelling of an insured’s
name, wrong address and, on automo­
bile applications, incorrect license
numbers are common. These create
complications and added communica­
tions. For example, an incomplete ad­
dress or post office box number alone
is often not enough if the risk is to be

inspected or audited. Through a box
number an inspector or auditor may
be able to locate an insured, but this
can be time consuming, particularly
in certain areas and may cause delay
in scheduling contact.
Correct automobile license numbers
are increasingly important as many
states now require these to secure mo­
tor vehicle reports. MVR’s are not
ordered by all carriers on the same
basis, but are being more extensively
used and particularly where safe driv­
er-type programs are used. An incor­
rect number means extra tracing and
delay at best, and could result in the
development of the wrong driving rec­
ord for the person involved.
In automobile, prior carrier and ex­
perience, names of regular operators,
proper use and length of time known
are important, and it is not uncommon
that one or more of these are over­
looked.
With miscellaneous liability, includ­
ing comprehensive general policies,
rating information is often incomplete
and the same is true as to coverages
wanted.
This same routine kind of error and
omission is characteristic of all lines
and accounts for the largest percent­
age. For example, our inland marine
people mention incomplete informa­

FINANCIAL

tion with respect to specific items
scheduled, including values, incom­
plete loss information and inadequate
agency information.
Occasionally an application will be
received lacking both agent’s name
and location and this is difficult to
trace, particularly if in an area where
a company has a number of agents.
Our ocean marine and disability peo­
ple concur in the majority of errors
being this type but stressed failure to
complete an application as their most
common error. This, too, is important
in all lines.
Our fire people also list similar er­
rors and omissions: Incomplete de­
scriptive location of risk, failure to
show necessary rating information,
failure to indicate clearly what is to
be insured, failure to show construc­
tion and occupancy, failure to show
term and effective date. These over­
sights are costly to all concerned and
often cause more than a normal delay,
as the correction may be received
when a file is in process, which may
mean removing it from normal chan­
nels, necessitating a second, or differ­
ent, cycle. Paper work which must
be done twice is a sales killer.
How can we avoid these common er­
rors? Accuracy, legibility and com­
pleteness are the answers— End.

STATEMENT

DECEM BER 31, 1960
ADMITTED

ASSETS

L I A BI L IT I

B onds:

(A m ortized) ............................. ...... ....... $ 9,414,240.56
Governm ent ............... $6,077,575.66
Special Revenue ........ 2,092,135.78
Other ............................ 1,244,529.12
Stocks: (M arket— N. A. I. C.) .......................
220,830.00
P referred ...................
50,800.00
Common .......................
170,030.00
M ortgage Loans— On Real Estate .................
239,273.25
Real Estate— Including Home Office Building 1,096,893.09
Cash and Bank Deposits ............... ..................
874,934.48
A gen ts Balances or U ncollected Prem ium s.... 1,068,774.75
Interest Due and A ccru ed ................................
67,602.71
R einsurance Recoverable on Loss Payments
325,911.82
A ll Other .................................................................
33,780.22
Total ........................... ............... .................. $13,342,240.88

M AX D. R U TLED G E, President

Reserves fo r :
Losses ..................................................... .........
Loss A djustm ent Expenses .....................
C ontingent Com missions ............ .............
T a x es: (D ue in 1961) ..............................
Federal Incom e T ax ...... $129,323.40
State Prem ium T ax ........ 172,342.46
A ll Other ............................ 33,784.49
U nearned Premiums ................................
A ll Other .........................................................

1,644,223.62
831,720.17

Total Liabilities .......................................$ 4,506,823.60

Surplus As Regards Policyholders

8,835,417.28

Total .............................................................$13,342,240.88

F. O . R U TLED G E, Secretary

A . L. W A G N ER , T reasurer

Home Office 2323 Grand Avenue, Des Moines, Iowa
Northwestern
Banker, March, 1961
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1,069,856.27
28,867.75
596,705.44
335,450.35

49

West Coast Promotion
H a rold D. Bostock, vice presi­
dent at the head
office of the Wells
Fargo Bank
American T ru st
Company in San
F r a n c is c o , h a s
been e le c te d to
the additional po­
sition of corpo­
rate secretary. He
replaces B ra d le y
B. Brown, secretary since 1928 and
now chairman of the trust committee.

New NOMA Director
William F. Deuser, assistant cash­
ier of the First National Bank, Kan­
sas City, will be the 1961-1962 director
of area eleven for the National Office
Managers Association. The five state
area includes Colorado, Iowa, Ne­
braska, Kansas and Missouri.

FINANCE FORUM . . .
(Continued from page 23)
introduced speakers two respective
nights, our president presided once
and the farm manager once.
Bank personnel ushered and were
paid time and a half. In addition to
programs, note pads, pencils and edu­
cational leaflets were handed out. The
A.B.A. is a good source for literature
and some of the speakers distributed
their own. The bank personnel also
took care of the door prizes. We
awarded three each night.
Coffee Hour

We are strong advocates of having
a coffee hour after the lectures. Many
people leave, but the ones who stay
enjoy it and we all become better ac­
quainted. Asking the wives of direc­
tors and stockholders to pour at the
tables created interest in the affair.
We invited the directors and their
wives and a few officers to cocktails
and dinner preceding the lecture to
meet the speaker. This gave us an
opportunity to entertain the directors
and also interest them in the forum.
In spite of the fact that some speak­
ers charge nothing, a forum is expen­
sive. Printing, advertising, entertain­
ment, and extra salaries all count
up.
A good source of additional informa­
tion on forums is the F.P.R.A. which
has portfolios on the subjects avail­
able.
We think a Finance Forum is a val­
uable service to the public and helps
build good community relations for
the bank.—End.

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

50th ANNIVERSARY FINANCIAL STATEMENT

EMPLOYERS MUTUAL
CASUALTY COMPANY
Home Office

210 Seventh Street

Des Moines

Condensed Statement as of December 31, 1960
DIRECTORS

ASSETS

JOHN F. HYNES
Chairman of the Board
Des Moines, Iowa
JOHN W . GUNN
President, Treasurer
Des Moines, Iowa
M. J. WILKINSON
Exec. Vice-President
Des Moines, Iowa
ROBB B. KELLEY
Secretary
Des Moines, Iowa
W . Z. PROCTOR
General Counsel
Des Moines, Iowa
W . J. HYNES
Claims Counsel
Des Moines, Iowa

Bonds

........... ............................. ...............$37,249,559.32

No bonds owned by the Company have
ever been in default either as to in­
terest or principal.

Stocks— M arket Value .......................
M ortgage Loans— F H A Insured

6,839,719.16
464,031.37

Real E state— Home and Branch
Office Buildings ................................

1,602,568.97

Cash in Banks .........................................

4,063,193.24

Prem ium s Receivable— not past due

4,372,702.02

Interest A ccrued and Other A ssets

878,488.47

Total Adm itted A ssets .............. $55,470,262.55

F. E. BELLAMY
President, Concrete Materials
Div., American Marietta Co.
Cedar Rapids, Iowa
E. C. BOOTH
Secretary-Treasurer
Lennox Industries, Inc.
Marshalltown, Iowa

RESERVES
R eserve fo r Claims ..............................$21,086,384.00
Funds set aside to pay all incurred
losses.

Reserve fo r Unearned Prem ium s .... 18,251,097.62
Funds set aside to return to every
policyholder the unearned premium in
event of cancellation.

W . HAROLD BRENTON
Pres., Brenton Companies
Des Moines, Iowa
HJALMAR HJERMSTAD
Pres., Citizens Fund
Red W ing, Minn.

Reserve fo r Taxes ................................
All Other Reserves ..............................

941,219.15

Included in this reserve is a sufficient
amount to pay I960' dividends on all
participating policies.

GEORGE A. MORRELL
Director, John Morrell & Co.
Ottumwa, Iowa
CARL MUELHAUPT
Pres., Central Service Co.
Des Moines, Iowa
JOHN D. STODDARD
President
Stoddard Development Co.
Des Moines, Iowa
R. W . W EITZ
Chairman
The Weitz Company, Inc.
Des Moines, Iowa

1,343,084.71

State and Federal Taxes.

Total Reserves .............................. $41,621,785.48
750,000.00
Guaranty Fund ........$
Reserve fo r
Contingencies ...... 1,250,000.00
Reserve fo r Security
Fluctuations ........
500,000.00
U N A SS IG N E D
SU R P L U S .......... 11,348,477.07
13,848,477.07

R. W . W O O D , M.D.
Newton, Iowa

$55,470,262.55

BRANCH OFFICES
Albuquerque, N.
Austin, Texas
Charlotte, N. C.
Chicago, 111.
Dallas, Texas

Denver, Colo.
Detroit, Mich.
Houston, Texas
Jackson, Miss.
Kansas City, Mo.
Lansing, Mich.

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

Little Rock, Ark.
Milwaukee, Wis.
Minneapolis, Minn.
Omaha, Neb.
Philadelphia, Pa.
St. Louis, Mo.

San Antonio, Tex.
Seattle, Wash.
Springfield, Mo.
Vancouver, B. C.
Wichita, Kans.

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

A NATIONAL INSTITUTION
Northwest ern Banker, March, 1961

50

In su ra n ce

Paychecks Become Deposits

A

s

e

r

v

n

i c

i c

o

e

.

.

.

600 5 S. M ilwaukee W ay • Littleton, Colo.

Paychecks are “old-fashioned” now
in the Valley National Bank of Phoe­
nix family.
Some 2,000 VNB employees in 67
offices throughout the state saw their
last paycheck on December 30, 1960.
Beginning January 15, 1961, their sal­
aries are deposited directly to their
checking accounts, twice a month.
Advantages of the new system are
two-fold, points out Earl L. Bimson,
vice president and comptroller.
1. It eliminates employee’s need of
making out a deposit slip;
2. It reduces bank’s expense of proc­
essing payroll checks.
All Valley Bank employees enjoy
free checking account privileges. Thus,
the opening of an account—if they
don’t already have one—creates no ad­
ditional expense for them.
Furthermore, emphasizes Comptrol­
ler Bimson, VNB employees on pay
days will continue to receive stub rec­
ords itemizing their gross pay, deduc­
tions and net pay.
If they need cash, they can imme­
diately draw a check on their balance
—all of it, in fact—on the 15th and
final day of each month, traditional
pay days on the VNB calendar.
Mr. Bimson indicated the direct de­
posit method is attracting considerable
interest from management of large

concerns. He cited the economy an­
gle, plus the fact considerable time
can be saved by eliminating reconcili­
ation of hundreds, sometimes thou­
sands, of paychecks twice a month.

St. Paul F&M Changes
The St. Paul Fire and Marine Insur­
ance Company announces the follow­
ing changes in its Detroit, Mich., and
home office field operations:
Donald D. McFadden and John R.
Comer have been advanced from the
positions of special agent to that of
state agent, under the general super­
vision of Detroit Manager Elmer C.
Dice.
Curtis A. Housh has been trans­
ferred from his position as special
agent for the company’s fidelity and
surety department, to that of multiple
line fieldman, with the title of state
agent. Mr. Housh will travel the
southwestern Minnesota territory and
will continue to make his headquar­
ters in the home office under the gen­
eral supervision of D. A. Swansick,
Minnesota manager.

F.P.R.A. School Officials
Two banking officials and a leading
educator have been named to super­
visory positions for the School of Fi­
nancial Public Relations, sponsored by

AHOY!
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Among other things . . . AN I CO
has special facilities for admin­
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program.. .
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• sound, continuing growth

CO

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Nothing more interesting
than gay pleasure boats
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swimming in the pool
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WRITS FOR COLORFUL BROCHURE AND
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FLORIDA’S MOST AQUATIC RESORT

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A M E R IC A N
N A T IO N A L
INSU R A N C E
COMPANY
of G A LV ESTO N , TEXAS

Northwestern
B a n k e r , M a r c h ,
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1961

LU

O'

U

z MIAMI
<

BEACH,

a FLORIDA
2

In su ra n ce

the Financial Public Relations Asso­
ciation in cooperation with Northwest­
ern University.
The next session will be held on
the university’s Chicago campus July
9-22.
Chairman of the school’s board of
managers is A. Gordon Bradt, vice
president of the Continental Illinois
National Bank & Trust Company, Chi­
cago. A veteran instructor of the
school, Mr. Bradt has been associated
with it since 1951.
Robert Lindquist, vice president of
the Harris Trust & Savings Bank of
Chicago, will be director of the school.
He aided in the original organization
of the school in 1948 and served as an
instructor for several years.
Daniel R. Lang, Ph.D., dean of
Northwestern’s evening division, will
also serve the School Financial Public
Relations as educational advisor. Dr.
Lang has taught at the school since
1954 and served as director of the
school last year when Preston E.
Reed, director since the school’s found­
ing, was on leave of absence.

BANKER & COMMUNITY . . .
(Continued from page 29)
be a leader if he will expend the effort.
Running a bank and achieving and
holding the place in the community
reserved for the person who bears the
title of banker requires an all-out ef­
fort. No weakling can achieve that
goal. It takes men . . . men with fore­
sight . . . men with intelligence . . .
men who are trustworthy.
A way of life for a banker, I believe,
can be summed up as follows:
A Way of Life

I believe I have been given a
grave responsibility by my fellowmen.
I believe I have many short­
comings which will make it diffi­
cult for me to accomplish the ob­
jectives which have been set be­
fore me. Yet, at the same time, I
will strive to the best of my abil­
ity to live up to the confidence
which others have seen fit to place
in me.
I will labor to be a true banker
to my depositors, to my share­
holders and to my community.
I will endeavor, at all times, to
use the funds of my depositors in
a prudent manner.
I will, at all costs, protect the
investment of my shareholders.
And last, but in no sense least,
I will expend myself to promote
the good of the community in
which I am working and of society
as a wholes—End.

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

51

From the world Inventory of great ideas

“ L E T N O T H IN G
PASS
T H A T W IL L
ADVANTAGE

Great ideas provide the foundation for
sound business practice.
Many of America’s leading banks have
long used St. Paul Terminal’s Preferred
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line credit limits.
Let us show you how inventory control
through St. Paul Term inal’s field ware­
housing can increase your banking serv­
ices, good will, and profits.

S T .

P A U L

T E R M I N A L

W A R E H O U S E

C O M P A N Y

O ffice s in p rincipa l c itie s
425

East 8th

Street

•

St. Paul , M i n n e s o t a

Northwest ern Banker, March, 196J

52

Municapals Set Record

D ealers
Underwriters
and

Distributors
of
IO W A
M u n ic ip a l B o n d s

S utro B ros . & C o
Established 1896
Members New York Stock Exchange, American Stock
Exchange and other principal exchanges.
80 PINE STREET, NEW YORK 5, N. Y.
Miami Beach, Fla.

Albany, N. Y.

Key West, Fla.

Palm Beach, Fla.

Washington, D.

State and local government bond au­
thorizations approved by American
voters last year totaled an all-time
high of $6.1 billion, according to a re­
view of the 1960 municipal bond mar­
ket in the latest issue of the IBA
Statistical Bulletin (February, 1961),
published by the research department,
Investment B an k ers Association of
America. The record $6.1 billion in
1960 is 30 per cent higher than the
previous peak of $4.6 billion in bonds
approved in 1956.
While it was a record year for bond
election approvals, actual municipal
bond sales in 1960 declined modestly
from the previous year. Sales last
year totaled $7.1 billion which com­
pares with the record of $7.5 billion
sold in 1959 and $7.4 billion in 1958.
In contrast to the high volume of
bonds receiving voter approval in
1960, only $960 million of bond propos­
als were defeated, an approval ratio
of 86.3 per cent by value.
The voters were generally receptive
to all types of new bond proposals
with the exception of bonds for recre­
ational facilities and administrative
buildings, less than half of which were
approved. Two-thirds of the total ap­
proved issues were for elementary and
secondary schools and water and
sewer projects.
The peak period for municipal bond
sales occurred during the 12 months
centered around the low point of the
last recession, April, 1958. During that
period, bond sales totaled nearly $8
billion. If the municipal market re­
sponds to the current period of reces­
sion and lower interest rates with the
same vigor that it showed in the past
two recessions, the volume of munici­
pal bond sales should exceed the $8
billion level in 1961. To date, how­
ever, the volume of municipal bond
sales has not yet shown this kind of
response. The downward trend of
bond sales since April, 1958, has been
checked, but the upward trend has
not yet begun.
Judging from preliminary indica­
tions, it would appear that 1961 will
produce an unusually heavy volume of
bond elections. The roster of elections
scheduled was substantially larger at
the start of 1961 compared to 1960.

C.
W

a y n e

H u m m e r
CH ICAGO

M EM BERS
N EW

Nortfor
hwest
ern Banker, M a r ch , 1961
Digitized
FRASER
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

YORK

STO CK

EXCH AN GE

&Co.

53

Banks

With

or#*

Municipals This ! #*###*
HILE investment men, who were surveyed re­
cently by the N orthwestern B anker , may disagree
as to whether or not the 1960 bond market was
“ unsettled, confusing and bewildering,” they do agree
unanimously that banks will find additional purchases of
municipal bonds this year a profitable move. Their com­
ments to this particular portion of the survey question­
naire will appear under Question 5 in this survey-report.
Five questions were asked leading bond men, the sur­
vey title being “What’s Ahead for Municipal Bonds?” The
questions, brief summations of combined thought on each
and individual comments of the men surveyed follow:

W

Question 1
Do you expect the dollar volume of municipal bond
offerings in 1961, compared to 1960, to be . . . More
. . . . Same . . . Less?

As there was no commentary requested to this ques­
tion, it suffices to report that 11 per cent of the men sur­
veyed said “ More” while the rest were equally divided in
opinion between “ Same” and “Less,” 44% per cent saying
“ Same,” 44% per cent saying “Less.”

Question 2
The 1960 bond market has been described as unset­
tled, confused and bewildering. How do you expect
the 1961 market to act? Will it remain about as it
has been described for 1960, or do you feel it will re­
gain more stability? If the latter, why?

Approximately 33 per cent said they expect the market
to be “relatively settled.” The others said “continue to
be unsettled, confused and bewildering,” “less volume
with cheaper money,” “bond prices higher, interest rates
lower,” “same as 1960” or “confused, but active and firm.”
Here are typical comments:
Paul A. Hakanen, vice president, John Nuveen & Com­
pany, Chicago:

“ The 1960 public bond market was neither unsettled,
confused nor bewildered. Like any free market (and
there aren’t many left nowadays), it was subject to the
effects produced from time to time by over supply and by
extremely strong demand. As is usual, the trends devel­
oped by those factors were exaggerated, thus producing
self-correcting reactions to the immediately preceding
trends. In retrospect, the public bond market as meas­
ured by the D-J Index of Yields was generally strong and
yields declined approximately 50 basis points from about
3.84 per cent early in January to 3.37 per cent late in
December. We do not expect any material change in Fed­

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Federal Reserve Bank of St. Louis

eral Reserve policy for some time and, therefore, antici­
pate a generally firm market for public bonds. Its profile
will, by guess, be relatively stable as compared with that
of 1960.”
Phillip F. Koenig, manager, municipal department, C.
F. Childs & Company, Inc., Chicago:

“To continue confused and bewildering.”
Herbert E. Neil, Jr., Harris Trust & Savings Bank, Chi­
cago:

“ I do not accept the premise in your first sentence.
Prices of municipals have not fluctuated wildly in 1960
as the phrase “unsettled, confused and bewildering” im­
plies. Although it is true that municipal rates stabilized
and even increased slightly in the early fall after moving
steadily downward earlier in 1960, this rate movement can
hardly be called “confusing.” I expect the 1961 market to
be relatively stable, as in 1960, with some further appre­
ciation in municipals during the next few months, fol­
lowed by a leveling off, and some fall in municipal prices
late in 1961.”
Boy W. Leriche, president, First of Iowa Corporation,
Des Moines:

“The municipal bond market will follow the market of
U. S. government bonds to a great extent and I feel that
it all depends on the action of the Treasury Department
and the Federal Reserve Bank. I believe, however, that
everything else being equal, bond prices will be higher,
meaning somewhat lower interest rates in the near
future.”
William A. Noonan, Jr., vice president, Continental
Illinois National Bank & Trust, Chicago:

“ It is my feeling that we will not experience a great
deal of change in the municipal market and that it will
carry on just as it did in 1960. It is quite possible that
the market will work somewhat higher in the early
months of the year, or at least through the second quar­
ter. It is doubtful that the market will reach any new
degree of stability, but will probably continue to follow
the pattern established in the past by the usual supply
and demand factors. A new element of uncertainty might
be occasioned by certain actions taken by the new admin­
istration.”

Question 3
In your opinion, what will be the trend of munici­
pal bond interest rates in 1961? How will these rates
compare with short-term, intermediate and long-term
Treasuries?
Northwestern Banker, March, 1961

54

In v e stm e n ts

About one-third of the men surveyed said “ Stable”
while another one-third said “Higher.” The other third
offered miscellaneous comments.
Here is what they said:
John H. Ruhl, municipal department, Quail and Com­
pany, Davenport, Iowa:

short-term rates somewhat higher and long-term rates
lower than at present, but I do not know just how they
can accomplish this in a free economy.”
Don G. Miehls, partner, William Blair & Company, Chi­
cago:

“Higher . . . will be governed somewhat by rates of
Treasury bonds.”

“Programs announced by, or under discussion by, the
new administration in Washington will make for higher
bond prices.”

Paul E. Youmans, manager, municipal department, Bosworth, Sullivan & Company, Denver:

Paul A. Hakanen, general sales manager, John Nuveen
& Company, Inc., Chicago:

“ Stable at low interest levels. Spread between Treas­
uries and Municipals expected to be a little wider than
the 1960 average.”

“ So many different and conflicting programs have been
‘trial ballooned’ in Washington, D. C., that if all were en­
acted, they probably would effectively counter each other.
When the smoke clears and Congress gets down to busi­
ness, their enactments probably will be mildly inflation­
ary.”

George B. Wendt, vice president, First National Bank,
Chicago:

“The interest rate structure will probably remain
steady within .05 to .10 limits. For the most part the
yield curves should parallel Treasuries in the three cate­
gories.”
Herbert E. Neil, Jr., Harris Trust & Savings Bank,
Chicago:

“ Municipal rates will fall a bit in the next few months
and then rise late in the year. Intermediate and long­
term Treasury rates may fall more in the next few
months than municipal rates . . . and short-term rates less
or not at all. Late in the year all rates will probably be
moving upward together.”
Question 4
What effect will programs announced by, or under
discussion by, the new administration in Washing­
ton have on the 1961 market?
Harry L. Westphal, vice president, Iowa-Des Moines
National Bank, Des Moines:

“ I am sure the new administration would like to have

William A. Noonan, Jr., vice president, Continental
Illinois National Bank & Trust, Chicago:

“Programs announced to date have aided the present
municipal market in so far as the price structure is con­
cerned and if tax rates are to be increased, it is obvious
that the yields will be much lower and the prices higher
on municipal bonds in all maturities. It remains to be
seen how successful the new administration will be in
its over-all program of pushing short-term rates up and
long rates down.”

Question 5
Do you think that in 1961 municipal bond purchases
by banks will be . . . More . . . Same . . . Less than
in 1960? Why? How can banks profit from pur­
chases of municipal bonds?

All investment men surveyed stated that banks can
profit this year by more purchases of municipal bonds.
Here are typical comments:

FIRST NATIONAL BANK

MUNICIPAL BONDS

IN ST. LOUIS

FOR INVESTMENT

is pleased to announce
the establishment of a new

STATE

MUNICIPAL BOND DEPARTMENT

COUNTY
CITY

under the direction of

SCHOOL

MR. NEWELL S. KNIGHT

FREE FROM ALL FEDERAL INCOME TAXES
FREE FROM MONEYS AND CREDITS TAX IN IOWA

THE WHITE-PHILLIPS CO., INC.

vice president

;!¡¡r
T H E F IR S T

First National Bldg.

DAVENPORT OFFICES
Phone 326-2527

Teletype DV 84

201 Fleming Bldg.

DES MOINES OFFICES
Phone AT 2-1456

Teletype DM 73

38 S. Dearborn St.

CHICAGO OFFICES
Phone FI 6-3336

Northwestern
Banker, March, 1961
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

who has been elected

msT.Voms

Member Federal Deposit Insurance Corporation

Teletype CG 2175

Good question— answered recently, in terms of one
banker’s situation, by M ajor B. Einstein, Vice Presi­
dent o f the First. Occasion: our latest annual con­
ference for correspondent banks. The conference
is one o f many ways we try to serve our correspond­
ents. Other ways— in governments, for example:
supplying daily quotations and related information
on the government market. Purchasing and selling
securities. Safekeeping securities and effecting settle­
ments by crediting or debiting our correspondents’
accounts. Still another way: a brand-new booklet by
Mr. Einstein called “ Investing for Banks.” Perhaps
you’d like to study it. A copy is yours for the asking.
M E M B E R


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

F E D E R A L

D E P O S I T

INVESTING
FOR
BANKS

First National Bank
in St. Louis
St. Louis 1, Missouri
Please send me my copy
o f Mr. Einstein’s new
booklet, “ Investing for
Banks.” No obligation.

T H E F IR S T
N A T IO N A L

BANK

IN ST. LOUIS

Name__
Bank___
Address_
City____

I N S U R A N C E

Zone

State

C O R P O R A T I O N

Northwestern Banker, March, 796Ï


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Federal Reserve Bank of St. Louis

57
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Federal Reserve Bank of St. Louis

Northwest ern Banker, March, 1961

58
Roy W. Leriche, president, First of Iowa Corporation,
Des Moines:

omy, money is relatively plentiful and bank purchases of
tax-exempt securities tend to increase substantially in
such periods. Banks can profit in 1961 from more pur­
chases of municipal bonds because in addition to the in­
vestment flexibility and safety of tax-exempt bonds the
income return compares most favorably with other forms
of investment, taxes considered.”

“More and more of the smaller banks, particularly in
Iowa, which are in the 52 per cent income tax bracket are
realizing the advantage of tax exempt municipal bonds.”
Philip F. Koenig, manager, municipal department, C. F.
Childs & Company, Inc., Chicago:

“ More taxes, more tax exempts will be desirable, as­
suming rates do not move up too fast. If they do they will
take shorts and wait for their level.”

Don Miehls, partner, William Blair & Company, Chi­
cago:

“ Less money tied up in inventory and bank deposits
should rise considerably. A look at the net yield should
convince a bank of the extreme advantages in tax ex­
empts.”

Paul E. Youmans, manager, municipal department, Bosworth, Sullivan & Company, Denver:

“ It appears that money demands will permit more bond
purchases in 1961 than in 1960.”

Harry L. Westphal, vice president, Iowa-Des Moines
National Bank, Des Moines:

George B. Wendt, vice president, First National Bank
of Chicago:

John H. Ruhl, municipal department, Quail & Company,
Davenport, loAva:

“ I think banks may purchase more municipals in 1961
than in 1960 as the loan demand is less. Banks can profit
by purchasing municipals. For example: If a bank is in
the 52 per cent bracket and purchases municipals to yield
3 per cent, this is better than a 6 per cent net return.”

“There will be more money available, so banks will
need the tax-exempt income.”

Herbert E. Neil, Jr., Harris Trust & Savings Bank,
Chicago:

Paul A. Hakanen, general sales manager, John Nuveen
& Company, Inc., Chicago:

“ Banks will have more funds available for investment
in municipals, as the Federal Reserve takes action to fur­
ther increase the reserves of member banks. Addition­
ally, loan demand will be less in 1961
than in 1960, freeing funds for munici­
pal investment. Banks cannot expect
to obtain capital gains from municipal
purchases during this year, except on
a very short-term basis in and out of
the market in the next few months.
However, the income from municipals
on an after-tax basis will exceed the
return on most other bonds appropri­
ate for bank investment.”—End.

“Reduced loan demand will be reflected in larger mu­
nicipal purchases, especially one- to 10-year range.”

“Due in large part to the current recession in the econ­

Since

1 9 2 2

MUNICIPAL BONDS

NEU & C O M P A N Y , 1NC.
INVESTMENT SECURITIES
Phones CH 3-6135 and CH 3-6136

406 Central National Building

Des Moines

JAMES C. SHAW
Ow e n p. McDe rm o tt

ROBERT J. KIRKE
t h o m a s l . w o r m le y

Ska w , M c D e r m o t t

s To.

MUNICIPAL BONDS EXCLUSIVELY
Underwriters and Distributors
of
County, City, School and Revenue Bonds
916 Liberty Bldg.
DES

MOINES

Northwestern Banker, March, 1961


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Federal Reserve Bank of St. Louis

Phone CH 3-6119

9,

I OWA

Successful Iowa Bidders
According to H. L. Maier, manager
of the municipal bond department of
Sutro Bros. & Company, members of
the New York Stock Exchange, they
have been successful bidders for five
issues of Iowa Municipal Bonds in the
past six months.
The firm purchased and resold $2
million of Black Hawk County, Iowa
2 V2 , 3 and 3.20 per cent County Court
House Bonds due in various maturi­
ties from 1961-1979, at prices to yield
from 1.50 to 1.20 per cent. They also
were the successful b i d d e r s for
$595,000 Storm Lake, Iowa, 3, 314 and
3.40 per cent Independent School Dis­
trict Bonds, due 1963-1980 and offered
at prices to yield 2 per cent to 3.40 per
cent; $594,000 Nevada, Iowa, Nevada
Community School District Bonds due
1962-1980 at prices to yield 2 per cent
to 3.40 per cent and $404,000 Waverly,
Iowa, Waverly-Shell Rock Community
School District 3, 2.90, 3% and 3% per
cent Bonds due 1962 to 1980 at prices
to yield 2.40 per cent; and $900,000
Pella, Iowa, Community School District
2.60, 2.90, 3% and 3.30 per cent bonds
due 1962 to 1977 at prices to yield 1.80
per cent to 3.30 per cent.
Sutro Bros. & Company was estab­
lished in 1896 and are headquartered
at 80 Pine Street in New York City.

59

R e: Tax Adjustments

i l*rofitThrouffh
I V#fir Hank's Kond
ih 'p u E 't m v n i
Written Especially for the Northwestern Banker
By WARREN F. SARLE
Vice President and Manager, Bond Department
The Northern Trust Company
Chicago

OOD management of a bond port­
folio requires an awareness of
the profit opportunities that ex­
ist in adjustments for tax purposes.
However, in seeking tax advantages
there are a number of considerations
which when overlooked may be ac­
companied by certain disadvantages
that could have been avoided. For
example: Too large a reduction in cur­
rent income, inadequate maturity di­
versification, or a “ locked in” situa­
tion.
Bond trading for tax advantages is
usually, though not without exception,
confined to securities comprising the
secondary reserve and, consequently,
mature beyond one year. When deal­
ing with U. S. government taxable se­
curities, in particular, many trades, in
a given market, whether for profit or
loss, reduce current income in order
to produce the greatest possible advan­
tage. The extent to which this is
desirable depends upon the judgment
of management of the possible current
income needs, not only for the current

G

year, but during the years the bonds
have to run.
“Locked-in” Situation

More often than not, trades of tax­
able bonds to produce losses involve
the purchase of discount bonds where
much, if not all, of the ultimate advan­
tage is dependent upon the long-term
capital gain tax rate continuing to be
more favorable than the combined nor­
mal and surtax rate at a time in the
future when the securities mature or
are sold at a profit.
Loss trading of too large a portion
of the secondary reserve may create
a “locked-in” situation during some fu­
ture year when funds from this source
would be required to meet heavy loan
demand and/or a decline in deposits.
Market conditions at that time might
be such that sale of the bonds would
reduce or even eliminate the advan­
tage originally anticipated at the time
the tax trade was executed. For pro­
tection against this sort of situation,
special forward planning is essential

| ABOUT THE AUTHOR

|

Warren F. Sarle, a native of Corning, Calif., joined the staff of The North­
ern Trust Company in 1927 and has served continuously since that time as
a member of the staff of the bond department, which is one of the largest
retailers of municipal and U. S. government bonds. A graduate of Cornell,
with subsequent study at Northwestern, he is a member of the Bond Club
of Chicago, University Club, Indian Hill Country Club and Bankers Club.
A past president, board of directors, Winnetka Community Chest, Mr.
Sarle is now president, board of trustees, Episcopal Diocese Endowment
Fund of Chicago, and director, Cook County School of Nursing.


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Federal Reserve Bank of St. Louis

when selecting longer term notes and
bonds for purchase in the program.
Careful Future Planning

Tax trading in the broad sense is
not merely a current year operation.
Consequently, careful future planning
is essential in order to provide for net
profit years and net loss years thus
avoiding consequential forced capital
gains by maturities during years when
a net loss may be more advantageous.
Furthermore, if a large portion of the
bonds comprising the secondary re­
serve is traded for tax losses, there
may be a tendency to concentrate pur­
chases in one or two issues which ap­
pear to be unduly depressed at the
time and thus disrupt a desirable ma­
turity diversification of the bond ac­
count.
Obviously, these comments are di­
rected primarily to tax trading of tax­
able bonds and notes. Trading of taxexempt municipal securities requires,
in many respects, quite a different ap­
proach.
Analysis of Needs

Under the present Federal Revenue
Act, a bank in the 52 per cent tax
bracket is justified in giving serious
consideration to adjustments in the
bond investment account for tax bene­
fits. However, before embarking upon
such a program, much careful analysis
by management of possible needs, not
only during the current year, but for
future years is very important. With
such an analysis as a guide, a program
may be prepared and put into effect.
Preparation of a program which gives
promise of maximum advantage re­
quires not only intimate familiarity
with the provisions of the tax law but
also a good working knowledge of se­
curities and markets.— End.
Northwest ern Banker, March, 1961

60

investm ents

Morgan Guaranty
Two changes in senior officer as­
signments at Morgan Guaranty Trust
Company of New York, together with
a number of other officer appoint­
ments, were announced by Henry C.
Alexander, chairman of the board.
J. Delafield DuBois, senior vice pres­
ident, will assume special project re­
sponsibilities in the bank’s manage­
ment group. He will be succeeded as
head of the international banking di­
vision by Guido F. Verbeck, Jr., also
a senior vice president, whose assign­
ment until now has been in the gen­
eral banking area.

A

STATEMENT

Also announced were the promo­
tions to assistant vice president of
David W. Brillhart, C. Chesney Mc­
Cracken, and W. Jarvis Moody, all
assigned to the general banking divi­
sion; Neil M. Holt, of the municipal
bond department; Clifford J. Kendall,
of the methods and systems group;
David B. Magee and C. Robert Safford,
of investments; John M. Porges and
Robert J. Wynn, of international
banking; John G. Rhatigan, of the
bank operations department; Thomas
W. Stanley, of the stock transfer di­
vision; William C. Zink, assigned to
the custody department.

OF

PROGRESS
FROM

Kansas City’s Most Progressive Bank
O u r th a n k s to th e m o r e th a n 1 0 0 0 c o r r e s p o n d e n t s w h o s h a r e w ith
u s th e g ro w th a n d s t r e n g t h r e f l e c t e d in th is s t a t e m e n t o f c o n d it io n .

D EP O SITS
JO H N W. AN D ER SO N A
R e tire d P re s id e n t, S h e ffie ld Steel D iv is ion
Arm co Steel C orpo ratio n
J O S E P H S. A T H A
C hairm an o f th e Board and C hief Executive
O ffic e r o f J. A. Folger and Co.
P re sid e n t, Grand A v e n u e ^ a n k , Kansas C ity
P re sid e n t, Vaughn In v e s tm e n t Company
P A U L D. B A R T LE T T
C hairm an o f Board, B a rtle tt and Company
A R T H U R B. C H U R C H A
R adio-T elevision Pioneer
W IL L IA M N . D E R A M U S
P re s id e n t and Chairm an o f Board
The Kansas C ity Southern R ailw ay Company
W IL L IA M
N . D E R A M U S III
P re sid e n t, M issouri-K ansas-Texas R ailroad
Company
L . P. E N G E L , M . D.
H E N R Y N. E S S *
W atson, Ess, M arsha ll and Enggas, A ttorne y s
W IL L IA M D. G R A N T
P re sid e n t, Business M en’s Assurance Co.
R IC H A R D C. G R E E N
P re sid e n t, M is s o u ri P u b lic S ervice Company
J . C. H IG D O N
C hairm an o f Board, Business M en’ s
Assurance Company
J. F R A N K H U D S O N *
D ire c to r and R etire d Chairm an o f Board
In te rs ta te S e c u ritie s Company, In c o rp o ra te d
Chairm an o f th e Board o f Regents,
R ockhurst C ollege
M O R TO N T. JO N E S *
P re sid e n t, Kansas C ity Fire and M arin
In suran ce Company, P reside nt and
M anaging D ire c to r, R. B. Jones & Sons Inc
R U FU S CROSBY KEM PER *
C hairman

B. E. K IN N E Y A
D ire c to r, H. D. Lee Company, Inc.
G EORGE C. KO PP A
K E N N E T H W . L IN E B E R R Y
P reside nt, B lack, S iv alls & Bryson, In c.
M A R V IN B. M A R S H
P re sid e n t, M arsh Steel and Alum inum Co.
L E S T E R M IL G R A M
P re sid e n t, M ilg ra m Food S tores, In c.
HARRY M O R ELA N D
P reside nt, Great Lakes Pipe Line Co.
C H A R L E S H . P R IC E II A
E xe cutive V ice-P resid en t, P rice Candy Co.
E. C. R H O D E N
P res ide nt, Rhoden In v e s tm e n t Co.
C. A . S C U P IN A
P re s id e n t, U nited U tilitie s , Inc.
LE O N AR D W. STA PLE S
P re s id e n t, H. D. Lee Company, In c.
H E R M A N R. S U T H E R L A N D
M anaging P a rtne r, S u th erlan d Lum ber Co.
S u th erlan d M a n u fa c tu rin g Company
ROBERT SM OCK THO M PSO N
P re sid e n t, T hom pson-Hayw ard C hem ical Co.
A L B E R T R. W A T E R S
E xecutive C hairm an o f Board,
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J . P. W H IT A K E R
C hairm an o f Board, W h ita k e r Cable
C orpo ratio n
H E R B E R T H . W IL S O N
C hairm an o f Board, Em ery B ird Thayer Co.
KEARNEY W O R N A LL A
C H A R L E S G. Y O U N G , J R . A *
E xe cutive Vice P res ide nt and
S enior T ru s t O ffic e r

Millions

Kosek Is President of
Iowa Investment Bankers
Ernest Kosek, manager of Ernest
Kosek & Company, Cedar Rapids, was
elected president of the Iowa Invest­
ment Bankers Association at the an­
nual meeting in
Des Moines. Oth­
er officers elected
for the ensuing
year are:
First vice presi­
dent, Jerry Fied­
ler, W h ite -P h i 1l i p s C om pany,
Inc., D a v en p ort;
second vice president, R u s s e l l
E. K O SEK
Knapp, president,
Securities Corporation of Iowa, Cedar
Rapids, and secretary-treasurer, Ray
Allender, secretary-treasurer, Carleton
D. Beh Company, Des Moines.
The following four directors were
elected for three-year terms: Mr. Ko­
sek; George W. Vieth, vice president,
Vieth, Duncan & Wood, Inc., Daven­
port; Lester M. Roeder, resident part­
ner, A. C. Allyn & Company, Water­
loo, and Malcolm M. McKenzie, Merrill
Lynch, Pierce, Fenner & Smith, Des
Moines.
The association’s annual Field Day
will take place at the Cedar Rapids
Country Club in June.

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O ver 400 direct correspondents blanketing the free world.

Northwest
ern Banker, March, 1961

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Federal Reserve Bank of St. Louis

(Continued from page 32)
of the Omaha Chamber of Commerce,
Y.M.C.A., and the Omaha Club, and
treasurer and director of the Omaha
Industrial Foundation.
He is also a member of the Bishop
Clarkson Memorial Hospital Corpora­
tion, Society of Liberal Arts, Greater
Creighton Committee, Sigma Alpha
Epsilon and Rotary Club.
Mr. Lyman was educated in the pub­
lic schools of his native Lincoln. He
also attended the University of Wash­
ington, then returned to the Univer­
sity of Nebraska, receiving his Bache­
lor of Science in Business Adminis­
tration in 1934. He was married Feb­
ruary 22, 1936, to Louise Condon and
they have a daughter, Jane, 22, and
two sons, Edward, Jr., 18, and Rich­
ard, 15.— End.

In v estm en ts

61

State Bond Sales Good
January sales of E and H bonds
totaled $13,268,484 for 13.7 per cent
of the 1961 sales goal of $96.3 million.
This is an increase over January,
1960, when sales were 12.5 per cent of
the 1960 goal. Only two months in
the past six years have produced
greater sales of the bonds in Nebraska.
E. M . “ Bud” Hunt

Jerry Stirtz

Charles Burmeister

C O N V E N T IO N S
March 6-8, ABA 58th Annual Savings
Conference,
Hotel
Roosevelt,
New York.
March 20-22, ABA Installment Credit
Conference, Conrad Hilton Hotel,
Chicago.
April 10-12, Association of Reserve
City Bankers, 50th Annual, Boca
Raton Hotel, Boca Raton, Fla.
April 10, FPRA Regional Meeting,
Kirkwood Hotel, Des Moines,
Iowa.
April 20-22, Independent Bankers
Association, Annual Convention,
Sheraton-Park Hotel, Washing­
ton, D. C.
May 11-13, South Dakota Bankers
Association, Annual, SheratonJohnson Hotel, Rapid City.

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May 26-27, North Dakota Bankers
Association, Annual, Gardner Ho­
tel, Fargo.
May 29-June 2, American Institute of
Banking,
Annual
Convention,
Statler-Hilton, Seattle.
June 6-7, Minnesota Bankers Associ­
ation, Annual Convention, Hotel
St. Paul, St. Paul.
June 14-16, Nebraska Bankers Associ­
ation Bank Management Clinic,
Doane College, Crete.
June 15-17, Wyoming Bankers Asso­
ciation, Annual Convention, Jackson Lake Lodge, Wyoming.
June 22-24, Colorado Bankers Associ­
ation, 60th Annual, Hotel Colo­
rado, Glenwood Springs.
June 22-24, Montana Bankers Associ­
ation, Annual Convention, Jackson Lake Lodge, Wyoming.
July 9-22, FPRA School of Financial
Public Relations, Chicago Cam­
pus, Northw estern University,
Chicago.
September 11-13, NABAC 37th annual
national convention. Conrad Hil­
ton Hotel, Chicago.
October 9-12, National Association of
Bank Women,
39th Annual,
Sheraton Hotel, Rochester, N. Y.
October 11-12, Nebraska Bankers
Association, Annual, SheratonFontanelle Hotel, Omaha.
October 15-18, American Bankers
Association, Annual Convention,
San Francisco.
October 29-November 1, Iowa Bank­
ers Association, Annual, Hotel
Fort Des Moines, Des Moines.
November 13-14, 10th National Agri­
cultural Credit Conference, The
Statler-Hilton, Dallas, Texas.
November 26-30, FPRA 46th Annual,
Americana Hotel, Bar Harbour,
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Federal Reserve Bank of St. Louis

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Northwest
ern Banker, March, 1961


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Federal Reserve Bank of St. Louis

president, although he will not be ac­
tive. Ivan Johannsen is now cash­
ier.

Minnesota

Canton

NEWS
G. N. REPPE

President

K. A . W A LES

Secretary

The Canton State Bank is now do­
ing business in its modern, new quar­
ters—a 25 by 54 foot block and brick
structure—on Canton’s Main Street,
reports Lawrence Galligan, cashier.

Grand Meadow
Minneapolis

N ew C om m ission er:
RTHUR W. SANDS, president and
A
principal owner of the Western
State Bank of St. Paul, has been ap­
pointed State Banking Commissioner
for Minnesota and assumed his new
duties March 6.
He succeeds Irv­
ing C. Rasmussen,
who served under
the Freeman ad­
ministration.
Mr. Sands began
b a n k i n g at the
Farmers State of
Alvarado in 1918,
joining the state
b a n k i n g depart­
ment as examiner
of closed banks in 1924. In 1927, he
became an assistant examiner in
charge of liquidations, becoming dep­
uty banking commissioner in 1934. He
resigned in 1935 to become president
of the Westside State.

Ada
The Ada National Bank has pur­
chased the building just south of its
own quarters, has moved it out on
rollers and plans a new addition to
the bank in the now vacant space.

Albert Lea
Junior A. Dorman, in the install­
ment department of the First Na­
tional of Albert Lea since 1959, has
been elected assistant cashier.

Alexandria
Alexandria State Bank

Joseph O. Perino, manager, Runestone Electric Association, and offi­
cer of Central Minnesota Television
and Tentelino Enterprises, has been
added to the board of the Alexandria
State Bank, reports George E. Buscher, president.
First Farmers National

Paul H. Anderson, owner of Ander­
son Furniture, has been elected a di­
rector to succeed F. W. Danielson, vet­
eran member of the board.

Alpha
Frank W. Striemer was only 22

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Federal Reserve Bank of St. Louis

. II'. Sam is

when he founded the Farmers and
Merchants State Bank, Alpha, and
now, at age 72, he is celebrating his
50th year as president.

Anoka
Harlan R. Thurston has b e e n
elected a director of the State Bank
of Anoka. Promoted were Henry C.
Johnson from assistant cashier to vice
president, Robert E. Johnson, to as­
sistant cashier and manager of the
insurance agency, and Mrs. Grace
Moyer, promoted to assistant cash­
ier.

Baudette
Clyde L. Tyler, who joined the First
National of Baudette, recently, com­
ing from Dell Rapids, S. D., has been
named an assistant vice president.

Belle Plaine
Common capital of the State Bank
of Belle Plaine has been increased
from $60,000 to $90,000. Capital is
now $90,000, surplus is $90,000 and un­
divided profits and reserves, $178,898,
making total capital accounts $358,898,
reports W. J. Gatz, president.

Bertha
The First National of Bertha’s capi­
tal has been increased from $25,000 to
$50,000 by a stock dividend.

Blooming Prairie
Warren L. Iverson, formerly of Ben­
son, has joined the staff of the Farm­
ers & Merchants State of Blooming
Prairie, as ag representative, an­
nounces E. C. Habberstad, president.

Blue Earth
After 19 years of active banking,
H. D. Paschke has stepped down as
vice president, First National of
Blue Earth. Two new directors were
named—John Paschke, who succeeds
his father on the board, and Fred
Koehler, Koehler Pharmacy. E. P.
Hummel retired recently as president
and Roger Kleven, formerly cashier,
succeeded him, and at this annual
meeting, Mr. Hummel was named vice

Carlton
O. F. Walters has resigned as vice
president, First National of Carlton,
after serving more than 50 years. His
decision was made because of failing
health. Lester Johnson, with the bank
since July of last year, has succeeded
Mr. Walters on the board.

Cass Lake
Jerry Dent, who recently joined the
staff of the First National of Cass
Lake, is now an assistant cashier.

Clearbrook
Christ Bakken has been elected vice
president of the First State of Clear­
brook, succeeding the late Carl Jensen,
announces Dr. R. F. Anderson, presi­
dent.

Cold Spring
Directors of the First National of
Cold Spring have increased surplus of
the bank from $75,000 to $125,000.

Crookston
A cash dividend of $2.50 per share
was paid and an increase in capital
stock—from $200,000 to $240,000—was
voted at the recent meeting at the
National Bank of Crookston, which is
planning to celebrate its 80th anni­
versary this year.

Crosby
R. O. Lee, cashier, First National of
Crosby, has announced that transfer
of funds from undivided profits places
the capital at $50,000, surplus at
$250,000 and undivided profits $55,000.
Total resources are $4,904,229.

Dodge Center
Elected at the annual meeting of the
Northwestern State Bank of Dodge
Center were: Eugene Precht, presi­
dent; Otis L. Otterness, vice presi­
dent; Edward L. Hartner, vice pres­
ident and cashier; Mrs. June Viste,
assistant cashier, and Miss Mary
Beniak, assistant cashier and auditor.

Duluth
Northwestern Bank of Commerce

James A. Hengel has been elected
assistant cashier, announces Fred C.
Lewis, president.
Northwest ern Banker, March, 1961

64

M in n e so ta

N ew s

Western National Bank

Lawrence J. Thorp, president, J. J.
Thorpe & Company, was elected a
director at the annual meeting, re­
ports Guilford S. Lewis, president.
Alfred P. Hoel, 81, pioneer Duluth
and Iron Range banker, died recently.
He had just been re-elected chairman
of the board of the Western National
the day before. Mr. Hoel also was
chairman of the First National of Gil­
bert and the Miners National of Eveleth.

East Grand Forks
Lee Everett, president, First Na­
tional of East Grand Forks, has an­
nounced the election of these three
men to the board: John Bushbee,
Verne Fassett and Jack Tanner.
Clarence Amundson, a director, has
been named a vice president.
Henry Giese and A1 Rudh, long-time
directors, have retired.

Eitzen
Elected at the Eitzen State Bank’s
annual meeting were: H. E. Deters,
president; F. H. Fruechte, vice pres­
ident; Herbert H. Fruechte, cashier
and director; Donald Meiners, assist­
ant cashier, and Leo Pottratz and El­
mer Fruechte, directors. Mr. Meiners
joined the staff last May.

Elkton
Simon T. Bohn, one of the original
stockholders and presently a director,
Farmers State Bank of Elkton, died
last month at his home in Adams. He
had served his area well in many civic
enterprises and as a pioneer com­
munity builder.

Ellendale
Controlling interest in the Security
State Bank of Ellendale changed
hands recently as Clayton M. Nelson,
cashier of the bank, and Martin J.
Ellingson, of Albert Lea, purchased
the interest in the bank of Harold
Grimstad, president.

Officers of the bank now are: Mr.
Nelson, president and cashier; Mr. El­
lingson, vice president; Harold Grim­
stad, chairman, and these directors:
Mr. Nelson, Mr. Ellingson, Mr. Grim­
stad, Irving Johnson, Athan Langlie
and A. S. Norby.

bank has a surplus of $300,000 and un­
divided profits of $178,000.
First National Bank

Directors voted to increase capital
stock from $100,000 to $200,000.

Grand Kapids
First National Bank

Ely
John Lozar was elected chairman of
the board at the First National of Ely;
Urho K. Tuomikoski and Joseph
Sever, Jr., were named vice presi­
dents. and Joseph G. Kastelic was
named assistant cashier at the annual
meeting.

Williard V. Sommer, vice president
who has headed the installment loan
department since 1955, has moved to
the commercial banking department,
and has been succeeded in installment
loans by Paul Houde, who has been
working with him. James True will
move to Mr. Houde’s position.
Grand Rapids National

Eveleth
Vernon A. Campbell, superintend­
ent, Eveleth Fee Office, which man­
ages iron ore lands on the Cuyuna and
Mesabi Range, has been elected a
director, First National of Eveleth,
succeeding Grover Mitchell, who has
retired as a director and vice presi­
dent.
Arthur I. Naslund is now vice pres­
ident.

Fairfax
Paul A. Duckstad has been elected
a director of the First National of
Fairfax. At the directors’ meeting, Mr.
Duckstad was named vice president,
Herb Nelson was promoted from cash­
ier to vice president and cashier, and
Irene Rieke and Gerald Eichten were
elected assistant cashiers.

Fairmont
Maynard K. Kastning, formerly as­
sistant cashier, has been named vice
president, and Marlen Bents has been
elected assistant cashier, at the Mar­
tin County National in Fairmont.

Fergus Falls
Fergus Falls National

Directors voted to increase capital
stock from $200,000 to $300,000. The

Tax free municipal bonds
for bank investment

Galen L. Finnegan, director since
1936, and Milton Fider, cashier since
1943, have been named vice presi­
dents. Russell Holm moves from as­
sistant cashier to cashier and Richard
Black was made an assistant cashier.
W. G. King, president, recently an­
nounced that the bank will purchase
three business buildings between Sec­
ond and Third on Pokegama Boule­
vard for a new $100,000 expansion
program. Plans call for demolishing
the purchased buildings to make way
for a 125 foot parking lot.

Green Isle
James B. Mullen has been elected
president of the Citizens State Bank,
succeeding his father, the late James
F. Mullen. He has been at the bank
since 1938, serving as cashier since
1949. F. P. Michaletz, vice president,
has been elected vice president and
cashier, after 35 years with the bank.

Harmony
Ella F. Hanson was elected a direc­
tor at the annual meeting of the Harmoney State Bank. Also, the surplus
account was increased from $75,000
to $100,000, making capital $100,000
and surplus $100,000.

Hastings
Samuel H. Hertogs and Benjamin
S. Sontag have been elected directors
of the First National. Mr. Hertogs is
a Hastings attorney. Mr. Sontag is
president of Hastings Lumber Mart
and Hastings Ready-Mix.

Henderson

Allison AS il liams Company
NORTHWESTERN BANK BUILDING
MINNEAPOLIS

Northwest ern Banker, March, 1961


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Federal Reserve Bank of St. Louis

Michael E. McGuire, attorney, has
been elected a director of the Sibley
County Bank, succeeding L. A. Schei­
ber.

Henning
FEderal 3-3475

Fillmore Trites has been elected a
director of the First National, suc­
ceeding O. G. Baglo, recently retired.

M innesota

H ibbing
E.
R. Sundberg, vice president, has
been advanced to executive vice pres­
ident, Merchants and Miners State
Bank.

News

65

H o st fo r W in te r C arn ival

H opkins
Marion Anderson has joined the
staff of the Hopkins Northwestern
National Bank as a full-time women’s
consultant, announces John J. Tarasar, president. Appointed to meet,
greet and assist women only, she will
explain bank services and be available
for helping women customers.
Hoyt Lakes
Kenneth G. Nelson has left the Rock
County Bank, Luverne, to become as­
sistant cashier at the First National
of Hoyt Lakes.
H untley
Lloyd Schellenberg, cashier, has
been advanced to vice president; E. R.
Nelson, formerly assistant cashier,
becomes cashier, and Mrs. Clayton
Perry, bookkeeper for five years, is
now assistant cashier, at the Farm­
ers State of Huntley.
Hutchinson
Irvin Burich, with the Citizens Bank
25 years, has been promoted from
cashier to vice president. Wallace
Kurth, assistant cashier, also with the
bank 25 years, was named cashier.
Ivanhoe
Leo Jerzak and Victor Sorenson
have been elected directors of the
First National, succeeding L. V. Widmark and Henry Stransky. Mr. Widmark had been associated with the
bank 46 years; Mr. Stransky, 30 years.
Jackson
A capital stock increase from $100,000
to $175,000 was voted by stockholders
of the First National, who recom­
mended declaration of a $75,000 stock
dividend. Officers expect to be doing
business in the all-new bank quarters
in March.
K asson
C. E. Palmer, president, Kasson
State Bank, recently announced new
evening hours for the benefit of cus­
tomers. The bank is open now Fri­
day from 7 to 9 p.m., in addition to
the regular day schedule, except the
bank will not now be open Saturday
mornings.
Lake Crystal
Ira J. Acldleman, cashier, Lake Crys­
tal National, has been elected a di­
rector of the bank.

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

GREETING MORE THAN 600 correspondent bankers and their ladies at the Queen of
Snows Coronation are, from right, First National Bank of St. Paul Vice President
Wallace L. Boss, who was the Carnival’s K ing Boreas Rex II in 1956, and Mrs. Boss;
Chairman Julian B. Baird and Mrs. Baird; President Philip H. Nason and Mrs. Nason;
Executive Vice President E. C. Brown and Mrs. Brown.

The First National Bank of Saint
Paul entertained more than 600 Up­
per Midwest correspondent bankers
and their wives during Saint Paul’s re­
cent Winter Carnival.
The guests were welcomed to Saint
Paul with a Queen of Snows Corona­
tion Party. The entire group at­
tended the colorful pageantry of the
Queen of Snows Coronation cere­
mony at the Saint Paul Auditorium.
In the reception line at the Coro­
nation party were Vice President
Wallace L. Boss, who was the Car­

LeSueur
Wallace and Quinton Peterson, di­
rectors, Valley State of LeSueur, have
retired from the board to develop
other interests. Ralph Hunsaker has
been named to the board.
Litchfield
The First State of Litchfield held
open house recently to celebrate its
70th year of service to the community.
Refreshments, souvenirs and chances
on savings certificates were high­
lights of the occasion, as was the coin
bank exhibit of the First National
of St. Paul and the old and rare cur­
rency exhibit of the Federal Reserve
of Minneapolis.

nival’s King Boreas Rex II in 1956,
and Mrs. Boss; Board Chairman Julian
B. Baird and Mrs. Baird; President
Philip H. Nason and Mrs. Nason; and
Executive Vice President E. C. Brown
and Mrs. Brown.
A highlight of the evening was
the appearance at the Coronation
ceremonies of the Indianhead Coun­
cil Boy Scout Drum and Bugle
Corps, a prize-winning group spon­
sored by The First National Bank of
Saint Paul. This was the same group
which appeared on the nationally
televised Garry Moore Show.

Mankato
John S. Reinhart has been elected
assistant vice president and Leander
H. Rosenhammer, assistant cashier, at
the National Citizens Bank, reports
P. R. Kenefick, president. Mr. Rein­
hart succeeds Matt H. Heimerman,
now with Coulee State Bank, La
Crosse, Wis., and Mr. Rosenhammer
succeeds Faye Ritter, who left the
bank to be married.

Marshall
Wallace A. Regnier, formerly cash­
ier, has been elected vice president,
and Darrell E. Krogh has been named
cashier, at the Western State, an­
nounces A. E. Persons, president.
The board voted also to increase
Little Falls
J.
C. Patience, vice president, Amer­ capital stock from $100,000 to $200,000
ican National, has retired after 39 via stock dividend. Total capital ac­
counts will be $508,500.
years’ service, because of ill health.
Northwest ern Banker, March, 1961

66

M innesota

News

’ “N orm a n H .
ARCH 1 this year was one day
Norman H. Tallakson will never
forget. To help him celebrate his 50th
year in banking — all on the same
street, same town — h u n d red s of
friends, customers and well-wishers
from the area visited the Bank of Willmar to congratulate him.
Directors and officers of the bank
had prepared coffee and cake and or­
dered an open house for that day.
They had designated March 1 as “Nor­
man H. Tallakson Recognition Day, 50
Years in Banking.”
Mr. Tallakson’s career in banking
started March 1, 1911, doing clerical
work, which included janitor duties.
He laid his broom aside, but neverthe­
less swept through the various depart­
ments of the bank, serving in all ca­
pacities. For many years he was pres­
ident and managing officer. He is now
chairman of the board.
He has spent his entire life in Willmar and has served not only as an
active member of civic clubs, but also
as president, as well as in other offices.
In banking he has held important
posts: Chairman, county and district
U. S. Savings Bond committees; char­
ter member, Independent Bankers As­
sociation; council of MBA, and activi­
ties with Kandiyohi County Bankers
Association.
Many of the visitors at the bank
March 1 reminded him of several
pleasant events of the past and it was
a very happy day for Norman H. Tal­
lakson.

M

Maynard
William F. Moen, son of W. A.
Moen, president, Security State Bank,
has been elected an assistant cashier.
He has been with the bank since June.
Officers and employees of the bank
were hosts when the bank celebrated
its 25th anniversary recently with an
open house.
Milaca
B. P. Allen, president, First National
of Milaca, has announced the appoint­
ment of a board of associate directors,
who will meet with directors of the
bank in order that plans and policies
of the bank may reflect a broader back­
ground of community experience and
interests. The associate directors are:
Farming, Morris Beckstrom and Ches­
ter Judd. Oil, Curtis M. Johnson. Re­
tailing, Ronald Olsen. Dairy, Arnold
Christensen. Auto, Burt Holland and
Harold Jacobsen. Construction, Don
Johnson.
M ontevideo
Leland Winge, formerly assistant
Northwest ern Banker, March, 1961

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Federal Reserve Bank of St. Louis

T a l D a i/“' O rtonville
cashier and auditor, has been advanced
to assistant vice president, and Paul
Boettcher, formerly assistant cashier,
has been named assistant cashier and
auditor, at the Union State Bank, re­
ports Lyle F. McCormick, executive
vice president.
M oorhead
P. J. Canton, executive vice presi­
dent, American State Bank, has been
elected president, Greater Moorhead
Development Corporation.
Mora
Robert L. Nikodym has been pro­
moted from cashier to assistant vice
president and M. James Trask, from
assistant cashier to cashier at the Kan­
abec State Bank.
Nasliwauk
American National Bank

Gene P. Malley, assistant cashier,
has been elected a director. Other of­
ficers and directors were re-elected.
First National Bank

A. G. Larson, president, reported
that no changes were made in officers
or directors at the annual meeting.
New Brighton
Harold J. Pohlad, president, First
State Bank of New Brighton, has an­
nounced that Howard Larson has been
elected assistant cashier and Stanley
J. Gove, vice president, has been
named to the board.
New U lm
Citizens State Bank

Victor P. Reim, president, has been
advanced to the newly-created office
of board chairman.
Farmers & Merchants State

George A. Volz, executive vice presi­
dent since January, 1957, has been
elected president, succeeding Frank H.
Seifert, who advances to board chair­
man. Also advanced were Edward H.
Tetrault, from cashier to vice presi­
dent, and Charles R. Kiecker, from
assistant cashier to cashier.
North field
Walter Gildemeister, cashier, Northfield National, was chosen “Outstand­
ing Boss of 1960” and the award was
presented at the Annual Awards Ban­
quet of the Northfield Junior Chamber
of Commerce.
Ogilvie
Marlene Berg was elected assistant
cashier, Ogilvie State Bank, at the re­
cent annual meeting.

Elwood Thronrud, president, North­
western State of Ortonville, has an­
nounced the election of Loren W.
Hamre of Madison as vice president.
Also, Kenneth Steen, assistant cashier,
has been promoted to cashier, and Verden Gerber has been elected assistant
cashier.
Owatonna
First National Bank

Donald L. Hammel, president, Owa­
tonna Concrete Products, Inc., has
been elected a director. Also, the sur­
plus account was increased from $204,000 to $250,000 to equal the capital ac­
count. Total capital structure is now
$591,000. Deposits at year-end were
$8,885,000.
Oakdale State Bank

G.
Harold Edmund, Federated In­
surance Company, and Thomas Walsh,
Jostens, Inc., were elected directors at
the first annual meeting of this bank
in this city. The bank had operated
in Meriden the past 45 years. Since
moving to Owatonna six months ago,
deposits have increased $103,000.
Plainview
Earl Harrington, president of the
First National of Plainview since 1934,
retired the first of the year. Don Har­
rington advanced from executive vice
president to president as Earl became
chairman of the board.
Princeton
John W. Barton, president, Prince­
ton State Bank, reported that directors
voted to increase capital structure
from $120,000 to $150,000 by paying a
$30,000 stock dividend out of the undi­
vided profits account.
He also announced that the bank
has acquired an adjoining building and
that remodeling it has begun, prepar­
ing it for additional space for the
bank. It will increase the bank’s
space by about a third and should be
done sometime in April.
Richfield
S. L. Jerpbak, president, Richfield
State Bank, has announced the elec­
tion of Philip C. Smaby, realtor firm
officer, as director, bringing the board
to nine persons. Also, Helen Belmont
was advanced from cashier to vice
president; Monroe Stenerson, from au­
ditor to cashier, and Richard Franzmeier to auditor.
M O R E M IN N E SO T A N E W S
ON PAG E 7 2

67

Twill City News

new Sibley Plaza State Bank
T HE
of St. Paul is scheduled to open
about July 1 in the Sibley Plaza Shop­
ping Center. Harold L. Rutchick, St.
Paul attorney who will be president
and director, said the bank has an au­
thorized capital of $300,000. Other
officers and directors include Bart
Reitano, vice president and cashier;
Bernard Sweet, North Central Air­
lines; Dudley Edblom, general man­
ager, Early American Life Insurance
Company, and John Haag, supervisor,
Piggly Wiggly Stores.
* * *
First Bloomington Lake National
Bank of Minneapolis held open house
recently in its expanded quarters. A
36 by 105 foot addition nearly doubled
the size of the bank. Two drive-up
teller windows were installed. The
exterior of the bank was refaced with
pre-cast stone and brick, and the main
banking floor was remodeled. The
bank dates back to 1912. Leonard R.
Oberg is president.
First National Bank of Hopkins
also held open house recently to mark
completion of $157,000 remodeling and
expansion program. Major improve­
ments included construction of a 90
by 40 foot brick and limestone addi­
tion, increasing the number of tell­
ers’ windows from eight to 14, air
conditioning, new furniture and fix­
tures, and a rearranged interior.
Founded in 1905, the bank is called
the oldest in suburban Hennepin
county. Its resources are $12,582,000.
* * *
Heavy gains in installment and com­
mercial loans raised the loan total of
F i r s t Southdale National Bank to
$3,000,000 last year, Donald W. Jud­
kins, president, reported at the annual
meeting. All officers of the bank were
re-elected.
* * *
Net operating earnings of North­
western Bank of Minneapolis reached
a record $4,481,339 in 1960, John A.
Moorhead, president, announced at

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

the annual meeting. This was an in­
crease of 21 per cent over the pre­
vious year.

totaled $1,828,261,596, a gain of 3 per
cent from a year ago. Loans totaled
$997,243,405, up 5 per cent.
* * *
A continuing strong demand for
credit and a high level of business
activity p u sh ed
net o p e ra tin g
earnings of First
Bank Stock Cor­
poration and affil­
iates to a record
high last year, Jo­
seph H. Column,

J. H. DANIELS

A. G. EGERMAYER

Elected to the board of directors
were John H. Daniels, president,
Archer-McDaniels-Midland Company,
and Albert C. Egermayer, senior vice
president and director, Cargill, Inc.
% * *
First National Bank of Minneapolis
has its best earnings year in history
in 1960, Gordon Murray, president,
announced. Gross operating earnings
were a record $21,184,000, an increase
of $1,608,000 over 1959. Net oper­
ating earnings also reached a record
$4,059,000.
* * *
Northwest Bancorporation and affili­
ated banks and companies reached
new highs last year in operating
ea rn in g s , divi­
dends a n d re­
sources, Goodrich
Lowry, president,
re p o rte d follow­
ing a Banco board
meeting. Consoli­
dated net operat­
ing earnings were
$15,420,530, up 9
per cent f r o m
1959. After pre­
ferred stock divi­
dends, earnings were equal to $2.84 per
share on 5,321,415 outstanding common
shares as of December 31. Total con­
solidated deposits on December 31, aft­
er elimination of interbank deposits,

president, report­
ed to directors
recently. Consoli­
dated net operat­
J. E. CORETTE
ing earnings to­
taled $15,307,407, a gain of 6y2 per
cent over 1959. Net income for 1960
totaled $16,313,018, or $4.70 a share,
compared with $3.22 a share in 1959.
Deposits of the corporation’s affiliates
as of December 31 totaled $1,655,434,415. Loans totaled $912,438,965.
Julian B. Baird, undersecretary of
the treasury in the Eisenhower ad­
ministration, was elected to the board
of directors. J. E. Curette, president
and general manager, Montana Power
Company, Butte, was nominated for
election as a director at First Bank
Stock’s annual meeting April 26.
5{i ^
Commercial loans made by Ameri­
can National Bank of St. Paul last
year jumped to $30 million from a $25million peak reached in 1959, C. P.
Reis, vice president in charge of com­
mercial loans, reported recently.
* * *
Fidelity Bank & Trust Company of
Minneapolis had operating income of
$1,370,612 for 1960, up from $1,251,998
for the previous year, C. Herbert Cor­
nell, president, said in the bank’s an­
nual report. Earnings per share were
$4.23 last year, compared with $2.92
in 1959. The bank’s deposits reached
$22,122,088 at the close of 1960, comNorthwest ern Banker, March, 1961

68

M innesota

News

pared with $20,688,924 at the end of
1959.
* * *
ObertM. Undem, aFidelity
em­
ployee since 1958, has been promoted
to trust officer, and Michael L. Lillehaugen, who also joined the bank in
1958, was named assistant cashier.

handled by one clerk using conven­
tional electrical and mechanical ma­
chines.
=t= * *

partment and was promoted to the
investment department in 1960.
* =i= *

Carl R. Pohlad,

* * *
Northwestern National Bank of Min­
neapolis plans to install a milliondollar electronic accounting system to
John A.Moor­
speedpaper work.
head, president, said the system can
process 8,000 checking accounts an
hour at top speed, compared with 150

D.

c.

SAND

president of the
Marquette Nation­
al Bank, has ann o u n c e d the
election of Don C.
Sand as an assist­
ant cashier in the
in v e s tm e n t de­
partment.
Mr. Sand joined
the bank in 1952
in the audit de­

Election of Philip B. Harris as a
senior vice president of Northwestern
National Bank of
Minneapolis and
promotion of 17
other staff mem­
bers w e r e an­
nounced by John
A. M o o r h e a d ,
president.
Elected assist­
ant v i c e presi­
dents w e r e C.
P a u l Lindholm
and Robert G. Ziemer, commercial department; Robert
M. Moore, Walter C. Briggs, Warren
F. Week, Jr., and Alfred Sedgwick, Jr.,
trust department, and Harold G. Peter­
son, bond department.
p. B. H a r r i s

THE

Live Stock National Bank of
SIOUX CITY

SALUTES
TH E G R EAT STA TE OF SOUTH D A K O T A
on the
C E N T E N N I A L

DAKOTA

C E L E B R A T I O N

R. G. ZIEMER

C. P. LINDHOLM

of

Leonard A. Nordstrom and David H.
Willard were elected trust officer and

TERRITORY

assistant secretary.
Elected assistant cashiers were Nor­
man Moen, William A. McCollum,
Charles R. Bard and Herman F. Wid­
en hoefer, c o m m e rcia l department;
Walter F. Hinek was named assistant
comptroller; Charles C. Frederick, as­
sistant trust officer; Clifford L. Fredell,
assistant manager, Lake Street Office,
and Reuel I. Lund, Jr., assistant man­
ager, North American office.
=t= =f= =i=

It has been our pleasure and privilege to serve Banks
of South Dakota for 66 out of its 100 years.
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

Northwestern Banker. March, 1961


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

H. Terry Morrison, chairman of the
board of Cargill, Inc., was elected to
the board of the
First N a t i o n a l
Bank of Minne­
apolis recently.
He has b e e n
with Cargill since
1946. At present,
he is a member of
the company’s ex­
ecutive and audit
committees a n d
h . t . m o r r is o n
chairman of the
finance committee.

69
Britton
Pauline Pavlik, assistant cashier and
assistant manager, Britton Branch,
First National of Aberdeen, has been
promoted to assistant vice president
and assistant manager, reports C. L.
Koch, manager.

South Dakota

NEW S
ROBERT H. FREI
A . S. GULLICKSON

President

Wagner

Secretary

m

Huron

O seu r
Itrosz
S u p erin ten d en t o f
overnor

a r c h ie

gubbrud

G has named Oscar Brosz of Tripp
as state superintendent of banking to
succeed Gordon Maxam of Lake Pres­
ton, effective March 1.
Mr. Brosz has been affiliated with
Dakota State Bank in Tripp and West­
ern State Bank of Sioux Falls. He
also served as state auditor four
months in 1958, being appointed to fill
an unexpired term.
Deposits in South Dakota
At A ll-T im e High
It was reported recently by Gorden
H. Maxam, superintendent of banks
until March 1, that the comparative
abstract showing condition of South
Dakota State Banks and Trust Compa­
nies as of the close of business Decem­
ber 31, 1960, shows that deposits in
state banks have established a new alltime high at $359,089,516. The pre­
vious high was as of the close of busi­
ness December 31, 1958, at which time
the total deposits were $353,011,550, so
as of the close of business December
31, 1960, deposits are $6,077,966 over
the previous high.
Demand deposits are somewhat low­
er than as of December 31, 1958, and
December 31, 1959, but this has been
offset by an increase in time deposits
of $13,395,295 over December 31, 1958,
and they have increased $3,554,331
since December 31, 1959.
Loans and discounts as of December
31, 1960, have increased $16,762,028
over December 31, 1959, and CCC loans
are $16,297,486 higher than as of De­
cember 31, 1959, with U. S. govern­
ment obligations being $20,256,157
lower than as of December 31, 1959.
The abstract reflects a very satisfac­
tory condition in so far as South Da­
kota State Banks are concerned, with
loans and discounts being only 35.68
per cent of total assets and 40.61 per
cent of total assets including CCC
loans.
Aberdeen
Aberdeen National

Three new directors — Paul Green,

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

ofTripp

owner and president, Hub City Iron
Company; Wilbur T. Kearns, secre­
tary-treasurer, News Printing Compa­
ny, and Harold Webb, owner and man­
ager, Webb Shoe Company — have
been elected to succeed three long-

Canton
Stockholders of the Farmers State
of Canton have voted to increased cap­
ital stock from $100,000 to $150,000 via
stock dividend of one-half share for
each share of record January 1, re­
ports Merle Dean, Jr., cashier.
Castlewood
Harold Heidemann, formerly cash­
ier, has been elected president of the
Citizens State Bank, Castlewood. Other
officers and directors were re-elected.
Cham berlain
Paul V. Olson, vice president and
manager, Northwest Security National
of Chamberlain, was honored recently
by friends and co-workers who held a
surprise reception for him in the bank,
serving coffee and donuts throughout
the morning. The occasion was Mr.
Olson’s 30th year with the bank.

H. W EBB

W. T. KEARNS

P. GREEN

time directors who have retired. They
are Carl A. Bremer, chairman of the
board; W. J. Allen, president and
owner, Dakota Farmer, and J. J. Mc­
Hugh, Brown County rancher.

Clear Lake
Claude Force, assistant cashier,
Deuel County National, Clear Lake,
since March of 1945, resigned last
month, and two new assistant cashiers
w ere nam ed: John Thoelke and
Charles Tritz.

Farmers & Merchants

G.
L. Hill, executive vice president,
has announced authorization of a 100
oer cent dividend by transfer of $100,000 from the undivided profits account
to the capital account. The capital ac­
count will be increased to $200,000. In
addition to the capital, the bank will
have $50,000 surplus account and $143,849 undivided profits and reserves. All
officers and directors were re-elected
at the annual meetings.
Alpena
The Bank of Alpena has received
approval from the F.D.I.C. for a Type
A branch office at Wolsey, subject to
certain conditions such as increasing
capital structure. Officers and direc­
tors have announced that the new
branch will be put into operation as
soon as possible.
Beresford
A. R. Olson, president, First Na­
tional of Beresford, has announced
that Marlowe A. Rowley has been
added to the board, making seven di­
rectors now instead of six.

De Smet
At the Peoples State Bank, De Smet,
Mrs. Theo. H. Meyer has been elected
chairman of the board and William
Pier has been named assistant cashier.
Edgemont
Bernard W. Keating, pioneer South
Dakota banker and vice president,
Southern Hills Bank of Edgemont and
Buffalo Gap, has retired, reports T. L.
Seppala, president and chairman.
Paul A. Peterson has joined the
staff as executive vice president, di­
rector and chairman of the board;
Edith Young was named cashier and
Lloyd Soske, Jr., and James Seppala
were elected assistant cashiers. Mr.
Seppala also became a board member.
Flandreau
Arthur R. Johnson, formerly with
the Farmers National at Brookings
and the Farmers State of Flandreau,
the latter as cashier and vice presi­
dent from 1935 until 1946, died re­
cently at Brookings.
Northwest ern Banker, March, 1961

70

South

Dakota

New s

Gregory
Gregory will have a new $250,000
bank building by January of 1962, re­
ports B. M. Kratyer, manager of the
Gregory Branch, Northwest Security
National. Purchase negotiations for
the site have been completed and
Curtis Lovre, president, Northwest Se­
curity, has approved the project.
H erreid
The following directors were elected
at the annual meeting of the Campbell
County Bank, Herreid: Andrew Hu­
ber, Jacob Schmidt, John Vojta, Joe
Wolf, William Block, Jacob G. Hofer
and W. O. Olsen. Officers elected
were: Joe Wolf, president; Andrew
Huber, vice president; William Block,
cashier and secretary; John Reidlinger,
first assistant cashier and manager,
Pollock Branch, and M ayn ard E.
Wittmeier, second assistant cashier.
Sherman Parrot is assistant manager
at the Pollock Branch.
H uron
Lewis A. Meyers, vice president and
manager, Huron Branch, Northwest
Security National Bank, has been
elected president of the Huron Cham­
ber of Commerce. Gordon J. Curren,
assistant vice president, first vice pres­
ident of the Junior Chamber, was
honored recently at the annual ban­
quet and given a Key Man Award.
John M. McGregor, assistant vice pres­
ident and assistant manager, has been
named to the senior Chamber’s ag
committee, and Arlo G. Swanson, as­
sistant cashier of the bank and a di­
rector of the Junior Chamber, has
been appointed to the industrial, mem­
bership and transportation commit­
tees. These four men set a fast pace
in civic activities and have a very
good service record in Huron.
K enn ebec
Charles W. Tomhave, president of
the Lyman County Bank of Kennebec,
died last month from injuries received
a few days before in a head-on auto
accident about six miles east of Kim­
ball. His 12-year-old son, Steve, re­
ceived a broken foot, several sprains
and cuts about the hands.
Well-known in South Dakota bank­
ing and civic circles, Mr. Tomhave’s
family received many notes of sym­
pathy from leaders throughout the
midwest. Among those paying tribute
to him were Governor Archie Gubbrud and S en a tor Francis Case in
Washington, as well as many others
in government and the South Dakota
Bankers Association.
Shortly before his death, Mr. Tom­
have had worked for and received ap­
N o r t h w e s t e r n Banker, M a r c h ,

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

1961

proval for moving the charter of the
bank to Chamberlain.
Mrs. Tomhave has since b e e n
elected president, succeeding her late
husband.
H.
B. Shelle, as managing officer,
was elected vice president and cash­
ier.
Mrs. Tomhave said the bank will
continue to operate under the same
policies of her late husband.

Commercial Trust and Savings
Mitchell, effective March 15.

of

M iller
Election of Herbert Heidepriem and
Roy Cook to the board of the First
National of Miller has been announced
by L. E. Weaver, president. Mr. Heide­
priem, an attorney, is a state senator
and Mr. Cook is a prominent farmer.

Lead
William J. Schoen, vice president
and manager, Lead Branch of the
First National Bank of the Black
Hills, was awarded the first “Boss of
the Year” award to be given by the
Lead Junior Chamber of Commerce.

M ob ridge
Charles Stiles of Cherokee, Iowa,
who joined the staff of the Mobridge
Branch, First National of Aberdeen in
1959, and who is serving in the install­
ment loan department, has been elect­
ed assistant cashier, reports Mike
L. Stehly, assistant cashier. It was
announced also that W. Dan Heupel,
vice president and manager of the
branch, was named “Outstanding Boss
of the Year” by the Junior Chamber
of Commerce, as recognition for sev­
eral civic projects, one of which was
for his participation in the building of
the new Mobridge Community Hospi­
tal, of which he is a director.

M adison
Loren W. Hamre has resigned as as­
sistant vice president, Northwest Secu­
rity National’s Madison Branch, to be­
come vice president of the Northwest­
ern State of Ortonville, Minn. Both
banks are affiliates of the Northwest
Bancorporation.

Morristown
R. A. Wiley, former cashier, Peoples
State Bank at Summit, is the new
managing officer of the Morristown
State Bank, in which he has acquired
controlling interest. No immediate
changes in personnel at the bank or its
branch in McIntosh were announced.

K im b a ll
Stockholders of the Bank of Kimball
recently increased capital from $50,000
to $100,000 via stock dividend out of
undivided profits account. Stockhold­
ers, employees, wives and escorts cel­
ebrated the bank’s 35th anniversary
with a party and dinner.

Parkston
M cLaughlin
R.
G. Knudel, formerly vice president Two extra employees and 200 new
and cashier, First State of McLaugh­ safe deposit boxes have been added at
lin, has been elected president to suc­ the new Farmers State Bank, Park­
ceed the late J. O. Van Nice. Ed Strad- ston, which held open house recently
inger, formerly vice president, was in its all-new, modern bank quarters.
elected vice president and cashier and The number of safe deposit boxes has
S. C. Hatch was named vice president. been doubled and the bank’s employ­
ees now number nine persons. The
gala open house, one for bankers and
M ilbank
insurance men and one for the general
Donald Pollock, assistant cashier and public, was reported in last month’s
assistant manager, Milbank Branch of N orthwestern B anker.
the First National of Aberdeen, has
been promoted to assistant vice presi­
Pierpont
dent and assistant manager, reports
O. E. Newman, who has served as
Arlo Allen, vice president and man­
ager. Ray Kusler, who joined the staff cashier at the First State Bank, PierJanuary 1, is now assistant cashier. point, for 37 years, has resigned, plan­
Orley Rath, trust officer, was promoted ning to take an extended rest.
to vice president and trust officer and
directors voted to transfer $500,000 Rapid City
from undivided profits to the surplus American National, AVestern National
account. Capital is now $1 million,
Rapid City Trust
surplus is $1.5 million and loan loss
A. E. Dahl, H. J. Devereaux, W. E.
reserves and undivided profits total Shoberg, Walter Pailing and Earl Kel­
about $2 million.
ler were named directors of all three
M itchell
Ronald R. Jenkins, assistant cash­
ier, McCook County National of Salem,
has been elected assistant cashier,

banks. At the American National
Bank, Ivan Landstrom and Fred Barth
were elected additional directors. At
the Western National Bank, B. J.
Roskos and Russell Halvorson were

South

named directors, and at the Rapid City
Trust Company, C. G. Skartvedt and
Eugene Pester were elected to the
board.
Rushmore State

John T. Vucurevich, president, has
announced that the bank plans to open
a new branch at the corner of Sixth
and Main Streets in early spring. New­
ly-remodeled space will house the op­
eration and this will be the only bank­
ing facility on Main Street in the
downtown area.
W atertow n
Robert H. Walrath, president of the
First Citizens National Bank of Watertown, was honored recently when the
Junior Chamber of Commerce awarded
him the “Boss of
the Year” award
at its a n n u a l
d i s t i n g u ish ed
s e r v ic e aw ards
banquet. Mr. Wal­
rath, a ch a rte r
m em b er o f the
Jaycees, has been
in banking in Wa­
tertown almost 25
y e a rs a n d h a s
R. H. W ALRATH
served as presi­
dent of the senior Chamber of Com­
merce, the Rotary Club and the Watertown Country Club. All officers of the
bank and their wives attended the ban­

quet to cheer their “Boss of the Year.”
At the bank, Mr. Walrath has an­
nounced a raise in surplus of $50,000,
from undivided profits accounts, giv­
ing the bank a capital of $250,000, sur­
plus of $400,000 and undivided profits
and reserves of $477,718. Officers and
directors were re-elected.
W inner
Richard Nelson was advanced from
assistant cashier to assistant vice pres­
ident and Mrs. Gladys Harder from
head of the bookkeeping department
to assistant cashier at the Farmers
State Bank of Winner. At the White
River Branch, Mrs. Beatrice Hutchin­
son was elected assistant cashier.
Mary E. Chivers, assistant vice pres­
ident, has retired after 35 years at the
bank in Winner. Directors accepted
her resignation “with regret,” citing
her long and loyal service.

S io u x F a ils
First National Bank
EONARD MARTINEK, vice presi­

L

dent and manager of the East
Branch of The National Bank of South
Dakota, was named general chairman
of the 1961 Scout-O-Rama, Boy Scout
show to be held April 14 and 15 at
the Sioux Falls Coliseum.
* * *
National Bank of South Dakota
Tom S. Harkison, president, The Na-

Dakota

News

71

tional Bank of South Dakota, has an­
nounced the naming of David E. Cleve­
land as assistant cashier of the bank’s
South Branch. Mr. Cleveland has been
with the timepay department of the
bank since 1958. He is a member of
the Army Reserve and Junior Cham­
ber of Commerce.
Earl G. Miller, vice president, has
been elected to the board of directors
of the Credit Bureau.
* * *
Northwest Security National

Directors of the Northwest Security
National Bank of Sioux Falls have ap­
proved a 50 per cent stock dividend.
It will increase the bank’s capital
stock from $1,000,000 to $1,500,000,
President C. A. Lovre said.
Capital accounts of the bank after
this stock dividend are as follows:
Capital stock, $1,500,000; surplus, $2,000,000; undivided profits, $515,988; re­
serves for contingencies and losses,
$1,788,729, total capital accounts and
reserves, $5,804,717.93.
The bank gained 11 places in its
standing among the 500 largest com­
mercial banks in the United States
during 1960 and now ranks 408th larg­
est compared with 419th place at the
end of 1959.
Melvin R. Syring, Brule County ex­
tension agent, left the bank March 1
to go with the Northwest Security
N a tion a l as agricultural specialist,

For transit service ’round the clock
Your Central Bankers leave no rock
Unturned. They labor hard by day and night
T o treat their correspondents right.
Phone

TA 5-3181 for A rt Bridgewater, A rt Williams,
Harley Patton, Hon Delano.

X H

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A I M D

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C O .

Central Park... 15th & Arapahoe. . . Denver 17, Colo.

MEMBER: FEDERAL DEPOSIT INSURANCE CORPORATION • FEDERAL RESERVE SYSTEM

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Northwest ern Banker. March, 1961

72

South

Dakota

News

working with farmers of the trade ter­
ritory.
Mr. Lovre, president, presented serv­
ice awards last month to eight North­
west Bank staff members whose serv­
ice with the organization totals 296
years.
Honored were the following, all of
whom have served with the Sioux
Falls main office: J. V. Lowe, Carl E.

class of the Sioux Falls Chapter of
the American Institute of Banking.
“Effective Speaking,” taught by Clara
Chilson, Augustana College speech in­
structor, is being offered to bankers of
the city and surrounding area.— End.

\7oigt, Bessie Dunn, L. M. Fannemel,
G. O. Nordby, Adolph Lodinell, B. F.
Borgers and C. A. Lovre.

Proctor
Open house was held last month in
the First National of Proctor so cus­
tomers and other friends could visit
the new two-story bank building. Re­
freshments and souvenirs were offered

* * *
Twenty bank officers and senior em­
ployees are attending a spring-term

M IN N E SO T A N E W S . - .
(Continued from page 66)

guests, who also witnessed dedication
of the second-floor community room,
being offered all civic groups free of
charge.
John L. Peyton, president, had pre­
viously announced a four for one
stock split. Five hundred shares were
split to 2,000 shares to reduce book
value of the stock which has risen
from $100 to $400 a share.
Red W in g
W. E. Sailstad, owner and operator
of several stores in the area, and Fran­
cis H. Watson, attorney, have been
elected directors of the Goodhue Coun­
ty National of Red Wing.
Redw ood Falls
Thomas Moog and John Ohlemann
have been elected assistant cashiers at
the Citizens State of Redwood Falls.
Both men have had prior banking ex­
perience and are members of the Jaycees.
Rochester
Gordon P. Gullickson, assistant cash­
ier, Northwestern National of Roches­
ter the past five years, has accepted a
position with the Bank of Mauston,
Wis.
St. Cloud
First American National

Bernard Meinz, formerly executive
vice president, has been elected presi­
dent to succeed his father, George J.
Meinz, who advances to chairman of
the board. The new chairman had
helped found the bank in 1919.
Also, E. W. Rogosheske has been
named a vice president in charge of
public relations.
Guaranty State Bank & Trust

If you know Dick, perhaps you can figure
out the symbols in his business crest.

But the

serious side of this heraldry is that our correspondent
department stresses speed, thoroughness
and FIR ST-class service for you. Let us "shield"
you from problems . . . and remember . . .
in Tulsa, it pays to

Think

Jerry J. Kigin, president, has an­
nounced an increase in capital from
$100,000 to $150,000 and the purchase
of land which the bank is using as a
site for a modern bank building. Three
buildings are being torn down to make
room for the new structure.
St. James
Leo Bodensteiner, with extensive
experience in agriculture which in­
cludes vocational ag teaching, six
years with the U.S.D.A. and farm man­
agement, has been named ag specialist
and assistant cashier, First National.
Martin F. Hillesheim has joined the
staff as auditor and insurance agent.
Ronald I. Reinhart, assistant cash­
ier, has resigned to move to Florida
where he intends to stay in banking.

S IN C E 1895

M O R E M IN N E SO T A N E W S
ON PAGE 7 4
Northwest ern Banker, March, 1961

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Federal Reserve Bank of St. Louis

73
sistant cashier to cashier, at the Walsh
County Bank’s annual meeting. Other
officers and directors were re-elected.
James Tibert, recent ag economist
graduate, has joined the staff of the
bank to work in all departments and
he will serve as an agricultural agent
of the bank.

North llakwta

NEW S
EA R L W EYD A H L

President

C. C. W ATTAM

Secretary

Killdeer

Jamestown
Fargo

First James River National

(Convention Chairm an N a m es
H o te l R eserva tio n C om m ittee
K. SIMPSON, vice president, 1941, and associated with the bank
A
• Merchants National of Fargo, is since 1936, when he became cashier.
general chairman of the 1961 Annual Dell W. Palmer, executive vice presi­
Convention of the North Dakota Bank­
ers Association, and has advised that
the hotel reservation committee is
composed of: W. R. Braseth, Fargo
National Bank, chairman; Fred Pot­
ter, Merchants National; Herb John­
son, Dakota National, and Marion
Loffer, First National.
Mr. Simpson said r e s e r v a tio n s
should be made through them. The
convention is to be May 26-27 with
headquarters in Hotel Gardner, Fargo.

dent, was elected president. He joined
Fargo National in 1949 as executive
vice president in 1949. W. R. Braseth,
vice president and cashier, was elected
senior vice president; C. S. Miller, vice
president, was named vice president
and cashier; R. G. Olson, assistant
cashier, became assistant vice presi­
dent and E. F. Sexton, assistant cash­
ier and auditor, was elected assistant
vice president.
Directors also declared a dividend of
$10 per share.

First National
Bism arck
C.
E. Mitchel, agricultural represent­ Harold T. Uehling, trust officer the
ative, Dakota National Bank, Bis­ past 12 years, retired the first of last
marck, was elected an assistant cashier month. His banking career began 50
at the annual meeting. All other offi­ years ago in his father’s bank in Ueh­
ling, Neb., and he has served banks
cers and directors were re-elected.
in Fremont and Omaha, Neb., leaving
the trust department of the United
Carrington
States National of Omaha in 1948 to
Directors of the Foster County State head the trust department of the First
Bank, Carrington, were increased in National of Fargo.
number from three to five recently
Merchants National
when J. A. Gilje and M. M. Meadows
Thomas H. Bartholomay, assistant
were elected to the board.
cashier, was named “O u tsta n d in g
Young Man of the Year” at the recent
Fargo Junior Chamber of Commerce’s
Ellendale
James Comstock, who joined the annual banquet. He received the Jaystaff of the First National of Ellendale cees’ Distinguished Service Award for
last December, has been elected cash­ achievements and service to the com­
ier, succeeding W. S. Boom, who re­ munity during 1960. Mr. Bartholomay
tired recently. Dr. A. B. Crabtree was has been assistant county agent,
elected a director to succeed Mr. Boom Grand Forks and Cass Counties; pres­
on the board. Also, Mrs. Wayne Hill ident of the Jaycees (1959); member
was promoted from assistant cashier of Chamber of Commerce ag commit­
to second vice president. Mr. Boom tee since 1953 (chairman in 1956); or­
completed 50 years of service while ganizer and chairman of the first
employed at three separate banks in Farmer-Business Day in 1957; mem­
Ellendale and left recently for Oro- ber, soil conservation committee for
ville, Calif., where he and his wife the state; member, speakers bureau,
have already purchased a home.
Greater North Dakota Association, to
name only a few of the many civic
activities in which he has played a
Fargo
leading role.
Fargo National
F.
J. Carlisle, chairman of the board,
has been elected honorary chairman Grafton
of the board and will continue as an
T.
Wendell Walker was promoted
active director. New chairman of the from cashier to assistant vice presi­
board is Earl L. Shaw, president since dent and Daniel J. Lessard, from as­

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Federal Reserve Bank of St. Louis

These promotions were announced
after the annual meeting by P. J. Shirber, president: Arvel Koehn, from as­
sistant cashier to cashier; R. H. Miller,
from assistant cashier to assistant vice
president in charge of the installment
loan department; Alvin Rudolph, to
assistant cashier and installment loan
officer, and Dan Schorsch and Marwin
Smith, assistant cashiers.
Jamestown National

Frank Gallagher, Jr., partner, James­
town Plumbing and Heating Company,
and Floyd Barthel, prominent grain
farmer from north of Buchanan, have
been elected directors, succeeding H.
G. Proctor, one of the charter direc­
tors who is resigning, and the late Dr.
Phillip G. Arzt.
Langdon
The First National of Langdon has
purchased the building adjoining the
bank building on the south with plans
to move or raze the structure to make
room for an addition to the bank, an­
nounces M. L. Johnson, president of
the bank.
Linton
At the annual meeting of the First
National of Linton, J. D. Meier was
re-elected president; K. A. Meier, for­
merly cashier, was elected executive
vice president and cashier, and K. B.
Meier was named vice president.
Lisbon
Total capital of Farmers State Bank
of Lisbon has been increased $50,000,
according to Carl Sherwood, cashier.
Capital now stands at $150,000.
Howard Kinzler was elected assist­
ant cashier at the recent annual meet­
ing.
Mandan
First National

W. E. Tooley, Jr., who was re-elected
president at the recent annual meet­
ing, has announced that two new di­
rectors have been named to the board.
They are John Danz and J. C. Pfeifer.
Mandan Security

Albert Lennick, formerly assistant
cashier, Security Bank of Hebron, has
joined the staff of the Mandan Secu­
rity as assistant cashier. With the
Northwest ern Banker, March, 1961

74

North

D akota

News

Hebron Bank since 1954, he was very
active in civic affairs there.

ident. Total capital accounts, includ­
ing capital stock, surplus, undivided
profits and reserves, total more than
$590,000.

Minnewaukan
Wahpeton National
V.
A. Heiberg has retired as presi­
A1 Linder, owner of Lindale Cream­
dent of the Farmers State of Minne­
waukan and has been advanced to ery and Twin City Creamery of Breckchairman of the board. The new pres­ enridge; Dr. Lloyd Best, partner, Da­
ident is his son, Mason A. Heiberg, kota Veterinary Hospital, and Charles
formerly vice president. Dr. E. O. Yri Coghlan, businessman and former
is new vice president. Hope E. Hei­ mayor of Wahpeton, have been elected
berg, daughter of the chairman, is directors, succeeding R. J. Hughes,
cashier, and Vernon Sturlaugson, for­ president of the bank from 1926 until
mer county agent who joined the staff 1953; William J. Braun, business lead­
in 1959, is new assistant vice presi­ er and former state senator, and Jodent. Also, capital stock was increased sepr Voves, former treasurer, Wahpe­
ton Special School District, who has
from $75,000 to $100,000.
since moved to Arizona.

attack. He had begun banking in 1920,
after teaching several years and work­
ing with a railroad.
Two Harbors
An estimated 2,600 persons attended
last month’s grand opening of the
First National of Two Harbors. The
city mayor pulled the rope that un­
veiled the large time and temperature
sign and then, with a welding torch,
cut the chain opening the new Auto
Bank. Guests were given tickets for
refreshments, chances on prizes and
free souvenirs. A vacation savings ac­
count theme was used and this was
played up with posters and various
“Point of Sale” promotional material.

M inot
First National

Five officers were promoted and all
other officers and directors were re­
elected at the recent annual meeting.
Promoted were: A. E. Fiedler, from
cashier to vice president; J. D. McMa­
hon, assistant cashier to assistant vice
president and cashier; Ralph Schrei­
ner, from assistant cashier to assistant
vice president, and M. J. Frueh and
M. T. Coffey to assistant cashiers, an­
nounces A. R. Weinhandl, president.
Union National

Iver H. Orheim, a director of the
bank for many years, retired recently.
No successor was named immediately.
All other directors and officers were
re-elected.
Valley City
American National

Robert Griffin, a former member of
the Valley City High School faculty,
who joined the bank’s staff at the end
of the 1960 school term, has been elect­
ed an assistant cashier, reports R. M.
Hougen, president. American Nation­
al, now in its building which has
housed the bank 52 years, plans to
move into its new building in early
June.
First National

Maurice E. Wick, owner and presi­
dent of Wick Construction Company
in Valley City since 1950, has been
elected a director of the bank, succeed­
ing Erie Fouks, who has retired as
board chairman and as a director.
Mr. Fouks has been an officer of the
bank since 1918 and an executive offi­
cer from 1928 until 1955, when he be­
came chairman of the board. Harry
Lundholm, president, reported that all
other officers and directors were re­
elected.

W illiston
Addition of Charles Kalil to the staff
of the bank to work with Palmer Rustan and Kenneth Skadeland in the
consumer credit department, has been
announced by W. S. Davidson, Sr.,
chairman of the board, American State
of Williston.
M IN N E SO T A N E W S . . .
(Continued from page 72)
Shakopee
E. J. Huber, president, First Nation­
al, was honored “for appreciation of
Mr. Huber’s many years of service to
the community” at a recent Chamber
of Commerce Ladies’ Night Banquet.
Springfield
Norman Gatzlaff has been elected a
director of the Farmers & Merchants
State of Springfield, raising the mem­
bership to eight.
Staples
Henry Sather, cashier, Staples State
Bank, was elected a director at the an­
nual meeting.

Citizens National

Northwest ern Banker, March, 196 7


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Federal Reserve Bank of St. Louis

Virginia
Richard F. Hromadko and Harry J.
Moors were advanced from assistant
cashiers to assistant vice presidents
and Dale R. Hill, from auditor to as-

HROMADKO

MOORS

HILL

sistant cashier and auditor at the State
Bank of Virginia. Stockholders voted
to increase capital from $200,000 to
$450,000 via stock dividend and to
raise surplus from $400,000 to $450,000.
Officers and directors are looking
forward to celebrating the bank’s 50th
anniversary and the opening of the
remodeled bank later this year.

Stephen
R.
C. Johnson was advanced from
cashier to vice president, Farmers
Wayzata
State, succeeding the late H. S. ThiWayne Menz, manager of the small
bodo. L. V. Norman was promoted loan department, Wayzata State Bank,
from assistant cashier to cashier.
has been elected an assistant cashier.
T h ie f R iver Falls
A transfer of $50,000 from undivided
profits to the surplus account was
voted recently at the Northern State,
increasing surplus to $250,000. Capital
stock remains $100,000.
Orville M. Hanson, with the bank
since 1954 and cashier since 1958, was
elected a director.

W ahpeton
Capital stock has been increased
from $100,000 to $200,000 via stock divi­
dend, announces B. P. McClusker, pres-

Upsala
Willard Lillestrand, director of Upsala Cooperative Telephone Associa­
tion, has been elected a director to
succeed the late James Johnson, at the
Farmers State of Upsala.

Tracy
Cleon Cook, 67, vice president, Farm­
ers & Merchants State until his retire­
ment in 1957, died recently of a heart

W in on a
Merchants National Bank

Alvin C. Grulkowski has been pro­
moted to assistant cashier. Plans are
underway for an addition and remod­
eling of the bank. Another site, be­
sides the one providing the additional
space, has been razed for parking. A
drive-in window is being added as well
as more convenience and space.
Winona National & Savings

J. D. Scott, formerly assistant cash­
ier, has been elected assistant vice
president.

75
Security Bank & Trust Company

Carl Lehrkind, Jr., Bozeman busi­
nessman and legislator, has been
named to the Security Bank and Trust
Company board of directors. He suc­
ceeds the late George Baxter, who died
in December.
Also, Edward J. Hines, manager of
the installment loan department, has
been elected assistant vice president.

Montana

NEW S
R. M. W ATERS

President

Billings

R. C. W A LLA C E

Secretary

Helena

Butte
A g Credit C onference
The twelfth annual Agricultural
Credit Conference was held at Mon­
tana State College, Bozeman, Febru­
ary 23, 24 and 25.
The first phase of a two-fold pro­
gram this year dealt with the outlook
for agricultural lending in the next
few years and the responsibilities of
the lender, not only to the stockhold­
ers and depositors, but also to the farm
and ranch customers. Talks by Curtis
Eaton, vice president, Twin Falls
Bank & Trust Company, Twin Falls,
Idaho; Fred Peterson, vice president,
Denver U. S. National Bank, and Wes
McEwen, Montana Flour Mills, Boze­
man, highlighted this portion of the
conference.
In the afternoon session, discussion
centered around application of new
technology that has been developed
and current developments in feeding
operations. A beef cattle feeding panel
highlighted this portion of the meet­
ing.
The Saturday morning session fea­
tured an address by Dr. O. B. Jesness
of St. Paul, Minn., and a panel from
the department of agricultural eco­
nomics, Montana State College.
Entertainment features of the con­
ference included a social hour and
banquet at the Baxter Hotel and the
Seattle University-Montana State bas­
ketball game.
Baker
John T. Vucurevich of Rapid City,
S. D., has been named president of
the Bank of Baker. Gene Wellenstein,
cashier, has been elected vice presi­
dent. Elroy Ness and Buzz Flint are
retained as assistant cashiers.
Mr. Vucurevich purchased the ma­
jority of stock in the bank last year
after an illness suffered by Rex Flint,
past president. Mr. Flint remains on
the board of directors.
Billings
First National

At the annual meeting, Fred W.
Marble, Jr., president, announced the
bank had increased its surplus account
by $100,000, bringing total capital and
surplus up to $1,100,000.
Also, L. H. Mangiantini was appoint­

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Federal Reserve Bank of St. Louis

ed assistant cashier and Harold A.
Slemmer was appointed assistant aud­
itor.
Midland National

Paul Alweis, a partner in Jason’s
Men’s Store, was
elected a director.
Mel S. Sivertson,
Lyle Sundine and
James F. Grunert
were elected as­
sista n t cashiers.
Other officers and
directors were re­
elected.
A n n ou n ced by
the
N orthwestern
J. A. SILLERS
B a n k e r last
month was the promotion of John A.
Sillers from assistant vice president
to vice president.
Security Trust & Savings Bank

O. M. Jorgenson, chairman, has an­
nounced the promotion of Gordon W.
Wolfram from auditor to comptroller
and the appointment of E. Eugene
Gale as auditor.
Mr. Wolfram has been with the bank
since 1948 and Mr. Gale joined the
Security Trust & Savings Bank last
September.

First National

Irving H. Bolitho, president, an­
nounced the appointment of Walter H.
Sells, auditor, as assistant cashier. Mr.
Sells joined the bank in 1951, and
worked in several departments.
Miners National

D.
A. Orlady, who joined the bank in
1960 as an assistant cashier in charge
of the installment loan department,
has been named assistant vice presi­
dent. Other officers and all directors
were re-elected.
Security Bank

Paris W. Robert of Roundup has
been added to the board of directors.
Other directors and officers were re­
elected.
Colum bus and Laurel
The annual meetings of the Yellow­
stone Banks of Columbus and Laurel
were held recently at Laurel.
Paul G. Matovich was elected a di­
rector of the Columbus bank, replac­
ing Albert E. Leuthold, who resigned
when he was appointed Montana State
Bank examiner. Eddie Bert Leuthold
was named assistant cashier at Laurel.
Other officers and directors were re­
elected.

Bozeman
First National

Charles Vandenhook, who retired in
January as chairman of the board, died
last month at the Bozeman hospital.
He was 82 years old.
Mr. Vandenhook retired January 10
after serving as chairman of the board
since 1947 when he resigned as presi­
dent. He first joined the bank as as­
sistant cashier in 1904. He became
president in 1921.

Cut Bank
The new First National Bank opened
for business recently. Directors of the
new bank are G. S. Frary, chairman;
H. M. Emerson, Jr., Richard A. Kullberg, Robert E. Lee, W. Y. Moberly,
Harold C. Nelson and William F.
Stufft.
Mr. Kullberg is president, Mr. Emer­
son is vice president and cashier, and
Mr. Moberly is vice president.

M o n ta n a imroup M e e t in g s
Date
May 4
May 5
May 6
May 8
May 9
May 11
May 13

Town
Deer Lodge
Lewistown
Livingston
Glen dive
Plentywood
Havre
Plains

Group
6
5
7
2
4
1
3

Thursday
Friday
Saturday
Monday
Tuesday
Thursday
Saturday

Northwest ern Banker, March, 1961

76

M ontana

New s

D illon
J. G. Berry, cashier, has been pro­
moted to vice president and cashier
and all other officers and directors
were re-elected at the annual meeting
of the First National Bank.
Fairview
Edward Towe, president, First Na­
tional Bank of Circle, has purchased
controlling interest of the Fairview
Bank from A. J. Huber, president. Mr.
Towe announced that Eugene DeLange will continue as cashier and
will be the managing officer.
Fort Benton
An extensive modernization and ex­
pansion program for the First Chou­
teau County Bank was announced by
George J. Peterson, president. Work
is scheduled for completion in May.
Features of the project include re­
building of the interior of the onestory section of the bank building, en­
largement and rearrangement of the
lobby, remodeling of the second floor
for employees’ facilities and storage,
installation of an after-hour deposi­
tory, construction of a new entrance
on Bond Street for the Time-pay de­
partment, and new lighting and heat­
ing systems.
Glasgow
Maurice Graham, an employee since
1948, has been elected vice president
of the First National Bank and Robert
Sizemore, an employee since 1957, has
been promoted to assistant cashier in
the installment credit department.
Also, stockholders have approved
the declaration of a 25 per cent stock
dividend and directors voted an in­
crease of $50,000 in the bank’s surplus
account. The changes will give the
bank capital of $250,000 and surplus of
$250,000.
Glen dive
Exchange State

Henry M. Lillejord, assistant vice
president, was elected vice president
and secretary; Nick R. Geiger was
named assistant cashier and manager
of the installment loan department,
and the bank’s surplus account has
been increased from $150,000 to $160,000.
Mr. Lillejord joined the bank in
1959, coming from the correspondent
bank department of the Midland Na­
tional Bank of Minneapolis. Mr. Geiger
joined the bank’s installment loan de­
partment in 1956.

Great Falls
First National

John W. Drannen has been elected
vice president and manager of the
Time-pay department, filling the post
left vacant by the death of W. A.
Sprinkle last December.
Also, four new directors have been
named. They are John D. Stephenson,
attorney; Lester A. Olson, president of
Bison Motor Company; Henry Sheffels, farmer and president of Central
Machinery Company, and Rilling S.
Williams, president and director of
Buttrey Foods, Inc. J. E. Dawson, a
director since 1952, retired and Art
Jardine, a director since 1958, declined
to stand for re-election.
First West Side

All officers and directors were re­
elected and Larry Bestwina joined the
bank as installment loan officer, re­
ports A. D. Faechner, assistant cash­
ier.
Montana Bank

Howard H. Stanley was elected hon­
orary director at the annual meeting.
He officially retired as an active direc­
tor, but will continue to attend board
meetings in an advisory capacity. His
affiliation with the bank began in 1933,
when the bank was organized, and he
was president from 1938 to 1942.
Other officers and director were re­
elected.

and directors were re­
annual meeting, accord­
Vashus, executive vice
cashier.

Nort
ern Banker, March, 1961
Digitized
forhwest
FRASER
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Federal Reserve Bank of St. Louis

First National

Victor H. Lohn, cashier, and J. R.
Stenbeck, assistant cashier, were pro­
moted to vice presidents. C. W.
“Bucky” Boone was promoted from
assistant cashier to cashier and Fred
Merritt and Kenneth Erickson were
named assistant cashiers.
Also announced by Hans Mebust,
president, was the election of Paul
Bowman, Kalispell auto dealer, as a
director.
Lewistown
First National

Earl M. Tyler, Moore, Mont., has
been elected a director to replace C. C.
Williamson who retired. Mr. Tyler is
an outstanding wheat farmer in the
Moore area. Mr. Williamson had
served as a director for 42 years.
Northwestern Bank

Harry C. Fields, president, an­
nounced the election of Robert L. Dissly to the board of directors. Other
officers and directors were re-elected.
Mr. Dissly has owned and operated
the Glass House in Lewistown since
1953.
Miles City
First National

Max Van Buskirk, Miles City busi­
nessman, was elected to the board of
directors, succeeding Fred W. WoolHam ilton
V.
C. Hollingsworth, president, re­ sey who resigned after serving on the
ports that all officers and directors of board for 25 years.
Mr. Van Buskirk came to Montana
the Citizens State Bank were re-elected
from Iowa in 1910.
at the annual meeting.
D. J. Venne and N. A. Lopez, cashier
and
assistant vice president respec­
Havre
tively, were elected vice presidents.
Citizens Bank
Ellen R. Lamey, cashier, has been S. Ross Erickson, assistant cashier,
promoted to vice president. In view was advanced to cashier, and C. L.
of her fine record of service the direc­ Bickle and L. D. Woolhiser were
tors also awarded her a two-week named assistant cashiers.
Miles City Bank
vacation to Hawaii.
W.
A. Mitchell was elected a direc­
Paul V. Malmberg was promoted to
cashier. L. B. Wigmore was elected tor, increasing the total number of di­
to the board of directors, replacing rectors to eight. Mr. Mitchell has
B. P. Haley who has moved to Oregon. been a Miles City businessman since
1933.
Helena
First National

Dewain C. “ Dewey” Johnson was
elected assistant cashier, according to
Nels Turnquist, president.
Mr. Johnson will be assistant opera­
tions officers. He has been with the
First National since 1959, coming from
the Metals Bank & Trust Company in
Butte.

First National

All officers
elected at the
ing to T. A.
president and

ficers and directors were re-elected at
the annual meeting.

Missoula
H. O. Bell and Newell Gough retired
from the board of directors of the
Western Montana National Bank and
Thomas E. Barbour, Ovando rancher,
and William J. Gallagher, president of
the Westmont Tractor Company, were
elected as successors.
Other directors and all officers were
re-elected.

K alispell
Conrad National

William Zweck was promoted from
auditor to comptroller and all other of­

M OKE M O NTAN A NEW S
O N PAGE 7 9

77

Colorado-Wyoming News

the bank, Mr. Caudell was in the
wholesale lumber business and prior
to that was with the Denver National
Bank. He was manager of the dis­
count department at the time of his
election as assistant cashier. He now
has been transferred to the business
development department.
Mrs. Carolyn H. Shelton has been
appointed trust administrator.
Bank of Denver

First National

Alam osa
Alamosa National

R. J. Moses has been elected to the
board of directors. J. L. Ginder, vice
president, was elected executive vice
president. C. A. Bergman, cashier, was
named vice president. Clyde Wil­
liams was named cashier. Eleanor
O’Dell, assistant cashier, was named
assistant vice president, and Douglas
Hill and Delmer Keating were elected
assistant cashiers. Mrs. Signe Fleshman was named assistant to the presi­
dent.
First National Bank

Walter “Bud” Carsella was pro­
moted from assistant vice president to
vice president. Other officers and all
directors were re-elected.
Arvada

Newly elected officers are Russell L.
Truitt, vice president and mortgage
loan officer; James M. Haney, assistant
cashier; Thomas S. Moon and John
Irwin, trust officers; Robert M. Starks,
assistant trust officer, and Allen M.
Burt, assistant mortgage loan officer.
Mr. Truitt succeeds Hiram Jordan,
who has resigned to become president
of a Wichita Falls, Tex., bank. Mr.
Haney has been with the bank since
1939. Mr. Moon has been assistant
trust officer since 1952 and Mr. Starks
joined the bank in 1952.
Pikes Peak Bank of Commerce

Waldo Dyck, owner of the West End
Furniture Company and one of the
eight organizers of the bank in 1957,
has been elected chairman of the
board.

First National Bank

Rocky Mountain Industrial

Glenn Baker has been promoted to
assistant cashier. He has been with
the bank since November, 1959, and
has been in charge of the installment
loan department.
Also, James W. Randall, cashier, was
elected vice president and cashier.

William R. Haigler and Loren D.
Swayne have been elected vice presi­
dents and A. J. Hartmann was elected
comptroller. Mr. Haigler has been
with the bank since June, 1959. Mr.
Swayne, formerly an assistant vice
president, has been with the bank
since 1954. Mr. Hartmann has been
with the Rocky Mountain Industrial
Bank since 1959.

Colorado Springs
Colorado Commercial & Savings

O. N. Brathovde, vice president, has
Peen promoted to executive vice presi­
dent. Richard W. Daily, lending offi­
cer, has been elected assistant cashier.
Dan W. Howells, Colorado Springs con­
tractor, and Gerald P. Wagner, past
president, Transit Mix Corporation,
were elected to the board of directors.
Other officers and directors were re­
elected.

Cortez
Basin Industrial Bank

Vincil S. Lester, Cortez superintend­
ent of schools, was named chairman of
the board. Other directors and officers
were re-elected.
Citizens State Bank

Charles M. Searle was elected presi­
dent and five new directors were
Colorado Springs National
elected.
Robert G. Hibbard has been named
New directors include Dr. M. P. Vo­
to the board of directors. He is co­ gel; William C. Hutchinson, C.P.A.;
owner of Hibbard and Company.
Marvin Owens, vice president, Central
Also announced is the retirement of Bank & Trust Company, Denver; J. J.
Vice President Stanley C. Willis, an Carey, president, Carey Construction
officer of the bank for the past 14 Company and Carey Realty Company
years.
of Denver, and J. Crawford Butts,
Exchange National Bank
president, Columbine Mortgage Com­
K.
G. Freyschlag, director of pub­ pany of Denver.
lic relations, was promoted to assist­
ant vice president, and Harold W. Litt- Denver
American National
rell moved up from executive assistant
to assistant cashier. Other officers and
Robert E. Caudell has been appoint­
directors were re-elected.
ed an assistant cashier. Before joining


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Federal Reserve Bank of St. Louis

L.
H. Lindemann, auditor, was
named vice president and auditor. J.
0. Bagstad, assistant vice president,
was promoted to vice president. Wil­
liam L. White, assistant vice presi­
dent, was also named assistant cash­
ier, and A. J. Brinkley was advanced
to assistant vice president from assist­
ant cashier.
Central Bank & Trust Company

All officers and directors were re­
elected at the annual meeting. In oth­
er action, stockholders approved a 5
per cent stock dividend.
President Max G. Brooks reported at
the annual meeting that bank earnings
during 1960 were the best in the
bank’s history, prompting the declara­
tion of the stock dividend.
The dividend increased the capital
stock of the bank from $4 million to
$4.2 million.
Center State

Remodeling of quarters for Denver’s
newest commercial bank, Center State
Bank, got underway recently in the
Cherry Creek Shopping Center.
Earl L. Kramer is president of the
new bank. Board chairman is Loren
E. Doty and vice president and cashier
is O. W. Leitner.
Colorado National

Donald L. Beachler was named as­
sistant vice president in the install­
ment loan department. Clarence Pavone becomes an assistant cashier in
the operations department. Stanley H.
Tichenor, John W. Nicholson and
Charles E. Henry were named assist­
ant trust officers.
William S. Garnsey III, president of
Garnsey & Wheeler Company in Gree­
ley, was added to the board of direc­
tors.
All other officers and directors were
re-elected.
Denver U. S. National

New assignments for four key oper­
ations officers have been announced.
Rollo E. Jacobs, cashier, was named
vice president in charge of new build­
ing construction. He will continue as
secretary of the board. Robert H.
Shepler becomes vice president for
operations. Reporting to Mr. Shepler
in new posts are N. B. Hart, cashier,
and E. L. Harrison, comptroller.
Mountain State Bank

Glen A. Pray has been promoted
Northwest ern Banker, March, 1961

78

Colorado

News

from assistant cashier to assistant vice
president and Arnold E. Smith has
been elected assistant cashier.
Leslie Milford, head teller, resigned
recently after completing 51 years in
banking.

porates gardens, lounging areas and
special construction to provide com­
fort and a restful atmosphere for cus­
tomers.
A formal open house is planned for
the near future.

National City Bank

Norman D. Dufoa was elected assist­
ant vice president. He is manager of
the installment loan department.
R. L. Olson, public relations direc­
tor, also reports that the bank ob­
served its golden anniversary with an
open house recently.
North Denver Bank

Charles R. Sillstrop and Murray F.
Hill, assistant cashiers, have been pro­
moted to assistant vice presidents.
Southwest State Bank

This first commercial bank to oper­
ate in the southwest Denver area,
opened for business last month and at
the end of its first week of operation
reported 750 a c c o u n ts had been
opened.
More than 2,000 persons attended an
eight-hour public open house.
One of only two completely circular
bank buildings in the nation, the
unique structure contains 8,000 square
feet of area on the main floor, with
an additional 8,000 square feet on the
basement level.
Officers are Frank W. Bieser, presi­
dent; E. F. Kilmer, executive vice pres­
ident; Daniel A. Gloekler, cashier and
assistant vice president, and Edward
T. Hinrichs, assistant vice president.
University Hills Bank

Harvey D. Willson, vice chancellor
and treasurer, University of Denver;
George E. Smith, general manager,
Martin Company; Herb Writer, secre­
tary and treasurer, Writer Bros., Inc.,
and Fred Manning, Jr., president,
Western Oil Tool and Manufacturing
Company, have been elected to the
board of the University Hills Bank.
Englewood
Englewood State

Glenn Obermeyer and Gene Guzzo,
both of the installment loan depart­
ment, were appointed assistant cash­
iers at the annual meeting.
First National

Richard H. Simon, Englewood attor­
ney, has been elected to the board of
directors. He was the youngest dis­
trict attorney ever elected in Colorado
and currently is vice president and
member of the board of governors of
the Colorado Bar Association.
Fort Collins
The First National Bank recently
opened for business in its new quar­
ters at West Oak and Mason.
Following a recent trend in bank
architecture, the new building incor­
Northwest
ern Banker, March, 1961

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Federal Reserve Bank of St. Louis

Golden
Kriss W. Barnes, well known busi­
ness and civic leader in Golden, has
been elected executive vice president
of the First National Bank.
Mr. Barnes joined the bank in 1954
and has served as assistant cashier,
assistant vice president and, most re­
cently, vice president.
Also announced was the election of
William D. Harmsen, president of the
Jolly Ranger Candy Company, as a
member of the board of directors.
Greeley
First National

John V. Whitten, assistant cashier,
has been promoted to assistant vice
president. Other officers and all direc­
tors were re-elected.
Weld County Bank

Harlan K. Houtchens, manager of
the Hibbs Clothing Store, and C. How­
ard Murphy, contractor, were elected
to the board of directors. Other direc­
tors were re-elected.
Julesburg
Robert “ Bob” Josserand has joined
the First National Bank in its farm
and livestock loan department. He
formerly was associated with the Gil­
bert Smyth cattle feeding enterprise.
Prior to that he was Sedgwick County
agricultural extension agent.
Lakeside
Frederick A. Foss, Golden druggist,
has been elected to the board of the
Lakeside National Bank. Mr. Foss is
president of the Foss Drug Company,
the largest independent retail drug
store in the Rocky Mountain area.
Don Carney, president of the Lake­
side bank, also announced the promo­
tion of Russell E. Wright from vice
president and cashier to executive vice
president, and Allan Longstreet, Jr.,
from assistant cashier to cashier.
Loveland
Robert Kinney, installment loan de­
partment, and Don Moon, customer
service r e p re s e n ta tiv e , have been
named assistant cashiers at the First
National Bank.
Also, W. A. “Bill” Vaughn, Estes
Park realtor and retailer, has been
elected to the board of directors.
M ontrose
Hall H. Keltz, formerly executive
vice president, has been elected presi­

dent of the Montrose National Bank,
succeeding L. F. Flower, Jr., who is
retiring to devote full time to personal
interests.
H. A. Thornton, former president of
the Palisade National Bank, has been
appointed vice president, and Don DeVinny, formerly cashier of the Mont­
rose National, was promoted to assist­
ant vice president.
P ueblo
About 150 bankers attended a recent
Southern Colorado NABAC chapter’s
annual clinic last month.
Key speakers included L. Shirley
Tark of the Main State Bank of Chi­
cago; C. Frederick Meyer, Financial
Industrial Fund Management, Colo­
rado Springs, and Nick Huston, City
National Bank & Trust Company, Kan­
sas City, Mo.
John Bartholf, Jr., assistant vice
president, Arkansas Valley Bank, was
chairman of the clinic planning com­
mittee.
First National Bank

Directors announced plans for re­
modeling and expansion of the bank
building. The program calls for re­
modeling of the seven-story Thatcher
block, which houses the bank; razing
a two-story structure west of the bank
and a one-story garage building to pro­
vide space for expansion.
Under the new program, drive-in
and parking facilities for the bank will
be enlarged. Directors said plans will
not be complete for about six months
and did not reveal the cost of the ex­
pansion program.
Minnequa Bank

Robert L. Freeman, cashier, has
been elected vice president and cash­
ier.

Rifle
A. A. Swan, cashier, has been elected
vice president and cashier, and Charles
C. McMurray was named assistant
vice president. Mildred Gates is a
new assistant cashier.
Salida
All officers and directors were re­
elected at the annual meeting, accord­
ing to J. Ford White, executive vice
president.
Thornton
Application for a new bank here has
been made to the State Banking Com­
mission by a group headed by Art
Karas, John Kane, Bob Robles, Keith
Talley and Joseph Wagner.
Ruling on the application was ex­
pected late last month.
If approved, the new bank will be
called the First State Bank of Thorn­
ton and will be located at 86th and

W yom ing

Washington. It will be capitalized at
$300,000 and will be sponsored by the
First National Bank of Denver.
Trinidad
The First National Bank has in­
creased its surplus by $200,000 to a to­
tal of $400,000.
All directors were re-elected at the
annual meeting.

W y o m in g N ew s
W yom in g Legislation
Acting Governor Jack Gage last
month signed into law a bill permit­
ting optional closing of banks on Sat­
urdays in Wyoming. A bill was en­
acted in 1959 permitting banks to
close on Saturdays during June, July
and August. The year-round Saturday
closing was encouraged by the Casper
banks that contended the legislation
was needed so banks could compete
with other industries for clerical
help.
Also last month, the Wyoming sen­
ate passed the 212-page uniform com­
mercial code, longest bill ever intro­
duced in the Wyoming legislature.
The measure, previously passed by
the house, was sent to the Governor
for signature.

Cody State

Surplus has been increased $25,000
to $300,000 by a transfer from undi­
vided profits, it was announced at
the bank’s annual meeting. Capital re­
mains at $100,000.
All officers and directors were re­
elected.
Shoshone-First National

Harold Winterholler has been elect­
ed assistant cashier. Other officers
were re-elected.
Lusk
Roscoe Kilmer was re-elected pres­
ident of the Stockman’s National Bank
at the annual meeting. Max L. Bird
was re-elected executive vice presi­
dent and Don Mitchell was elected
cashier.
Newcastle
Andy Hansen has been promoted
from cashier to vice president and
William A. Haines, assistant cashier,
moved up to cashier, reports Jack Devereaux, president, First State Bank.

First National

Robert C. White, vice president and
trust officer, retired February 1. He
has been affiliated with the bank since
1933 and is a life-long resident of Cas­
per.
Wyoming National

Cheyenne

A. HANSEN

w.

A. HAINES

Mr. Hansen joined the banks in 1926
and was promoted to cashier in 1945.
Mr. Haines came to Newcastle in 1956
as manager of the First State Insur­
ance Agency. He became assistant
cashier in 1958.

Cheyenne National

Robert W. Gravatt, vice president,
has been added to the board of di­
rectors.
It also was announced that the bank
has moved into its new quarters at
16th and Capitol, two doors south of
its old location. The new quarters,
formerly occupied by the American
National, have been remodeled and
redecorated.

Torrington
John McCreery, Torrington lumber
dealer and building contractor, was
elected president of the First National
Bank. Elmer Harpstreith and Bill
Poage were named directors and vice
presidents. Other directors are Ferd
Zimmerman, also a vice president, and
Mary Beth Mcllhenney.

Stock Growers National

William D. Clay, assistant cashier,
First National Bank of Chicago, has
been elected to the board of direc­
tors. He is the grandson of John D.
Clay, pioneer Wyoming banker who
served at least 20 years on the board.
All seven other directors were re­
elected.
It also was announced last month
that the bank’s new drive-up teller
unit, featuring two windows, has been
put into operation at 17th and Capitol.

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Federal Reserve Bank of St. Louis

79

ena, prior to joining the Stanford bank
six years ago.

Cody

Casper

All directors were re-elected and R.
W. Miracle, assistant trust officer, was
elected vice president and trust offi­
cer, succeeding E. C. Penney who is
retiring.

N ew s

M ONTANA NEWS . . .
(Continued from page 76)
P hillipsburg
Zan G. Murfitt, assistant cashier of
the Basin State Bank at Stanford,
Mont., has been elected cashier of the
Flint Creek Valley Bank, Phillipsburg.
He replaced Clayton Burt who re­
signed.
Mr. Murfitt was employed by the
Union Bank & Trust Company, Hel­

Richey
The following officers were elected
at the annual meeting of the First
State Bank:
Barbara Babb, president; Peter C.
Abler, vice president and cashier; P.
L. Hagan, vice president, and Ophelia
Eggum and Bettey Walker, assistant
cashiers.
Directors are Paul Hagan, Newell
Beery, Barbara Babb, Peter C. Abler,
Jerry Babb and P. L. Hagan.
R oundup
William D. Bianchi, assistant cash­
ier, was elected assistant vice presi­
dent of the Miners and Merchants
Bank. He started in the bookkeeping
department of the bank in 1955.
Other officers were re-elected.
Shelby
Capital and surplus of the First
State Bank have both been increased
to $200,000, according to an announce­
ment made at the annual meeting.
Stevensville
Donald L. Scothorn, executive vice
president, has been elected president
of the First State Bank, succeeding
K. J. McDonald who has been named
chairman of the board.
Other officers elected are R. W. Bax­
ter, vice president; Douglas J. McDon­
ald, vice president; Carl Lybarger,
cashier, and Marjorie Stubbs, assistant
cashier.
Douglas J. McDonald was elected to
the board of directors, replacing Rob­
ert Hare Davis, reports Mr. Scothorn.
W hitehall
Harold Piazzola, assistant cashier,
has been elected cashier of the White­
hall State Bank, succeeding Dan E.
Martin, who resigned to become cash­
ier of the new Security Bank at Three
Forks.
Ruth Opie, assistant cashier, was
named assistant vice president, and
Fay Landis was elected assistant cash­
ier.
N A B A C M eeting
The Glacier Conference of NABAC
is meeting in Kalispell, March 11. An
outstanding feature of the program is
a presentation by George Richards, a
partner in the accounting firm of Peat,
Marwick, Mitchell and Company, on
“Audit Needs and Minimum Audit Re­
quirements for Banks.” Mr. Richards
is in charge of the bank audit division
of the company’s Chicago office.
A problem critique was conducted
after Mr. Richards’ presentation.
Northwest ern Banker, March, 196Ì

80

AT H O M E O N TH E R A N G E
. . . or in the feedlot, or the buyer’s pen — wherever cattle are raised,
bought or sold. You can deal with the men from The U. S. National with
confidence. Their knowledge, like yours, comes from experience.
L et them w ork w ith you to dev elop
financing programs tailored to fit the needs
of your customers.
M a n y over-line loans can be handled
over the telephone. Call U. S. 341-8765.

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

Northwest ern Banker, March, 1961


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Federal Reserve Bank of St. Louis

81
years, with two years time out for
army service.

Nebraska

NEW S
M. P. BAIRD

President

H ARRIS V. OSTERBERG

Superior

Secretary

Omaha

N B A H ea d q u a rters E n la rg ed
of the Nebraska Bankers
OFFICES
Association on the fourth floor of
the Farnam Building in Omaha have
been considerably enlarged and com­
pletely remodeled. This is the first re­
modeling program in the 31 years the
association has occupied the present
quarters.
The Omaha Bankers Association, in
cooperation with the NBA, will now
provide a large conference and class­
room for association use and for the
Omaha Chapter of A.I.B. The suite of
offices also provides space for the
group insurance department and oth­
er personnel and equipment of the
NBA headquarters.
Public Relations Meetings

In its state-wide activities, the NBA
public relations committee approved
another series of Regional Clearing
House meetings to bring together
management and employees. They
will be held during May and June,
featuring a program of speakers and
visual aids that will stress the impor­
tance of public relations of the bank
and its employees to the community.
At similar meetings in 1958 more than
2,000 bank personnel attended 16 meet­
ings throughout the state. Tom Milliken, vice president of the Fremont
National at Fremont, is chairman of
the public relations committee.
Group Meetings

The next statewide meetings of the
NBA will be the group meetings sched­
uled for late April. Dates and loca­
tions are shown in a special box in
this section. The Bank Management
Conference will be held at Doane Col­
lege, June 14-16, and the Agricultural
Credit Conference will be held Sep­
tember 11-14 at Scottsbluff, Kearney,
Norfolk and Lincoln on successive
days.
Special A.B.A. Train

Arrangements have been completed
by NBA headquarters for two special
cars on the Burlington California
Zephyr, leaving Omaha Thursday, Oc­
tober 12 at 11 p.m. for the A.B.A. con­
vention in San Francisco. The train
arrives in San Francisco on Saturday
afternoon, October 14, and the A.B.A.

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Federal Reserve Bank of St. Louis

convention will start the following
day.
Bankers interested in joining the
group on this reserved car trip should
contact association headquarters im­
mediately.
Alliance
Mrs. Glaideth A. Frank and Mrs.
Phyllis A. Edmiston, daughters of the
late Chris J. Abbott, were elected di­
rectors of Guardian State Bank at
the annual meeting. Surplus of the
bank was increased by $50,000 to $650,000. Capital is $500,000.
A lm a
Open house was held early this
month at the new building housing
the Harlan County Bank. J. G. Has­
kell, president, revealed in a public
announcement last month that direc­
tors of the bank have deeded the old
bank building to the city of Alma to be
used as a city hall. At present, city
offices are in the basement rooms of
the public library and are completely
inadequate. The surprise offer was
met with warm thanks by city offi­
cials.
Beatrice
Major remodeling of the officers’
quarters in the lobby of the Beatrice
National Bank has added 500 square
feet of space for needed expansion, ac­
cording to W. W. Cook, president.
Blue H ill
Jerry Koepke was elected assistant
cashier of the Commercial Bank of
Blue Hill by the directors. He has
been with the bank five and one-half

Cambridge
Hugh Eisenhart, legal counsel for
the First National Bank for many
years, was elected to the board of di­
rectors at the annual meeting. His
father was actively engaged in bank­
ing during his lifetime. His three
brothers, A. C., F. W., and E. W. Eisen­
hart, operate the Culbertson Bank at
Culbertson, Neb.
Campbell
Lester Alber has been added to the
staff of the Campbell State Bank as
assistant cashier, according to Don F.
Bailey, president.
Mr. Bailey also announced that the
interior of the bank has been com­
pletely remodeled, including new floor­
ing, new teller counters of black wal­
nut wood, doors and paneling around
the interior of the same wood, new
window draperies, and new glass front
doors.
Chadron
Paul M. Hefti has been elected ex­
ecutive vice president and cashier of
the Bank of Chadron. He was former­
ly vice president and cashier. Ted
L. Bare has been elected an assistant
cashier.
Mr. Hefti and President LeRoy Ab­
bott were hosts at an open house Feb­
ruary 22 when guests were invited to
tour the bank’s completely new build­
ing. Door prizes were awarded and
gifts were presented to every person
registered. The building features a
drive-up window, private parking for
customers, night depository, separate
installment loan department, time and
tem p e ra tu re sign, and employees’
lounge.
The interior is harmoniously dec­
orated in beautiful colors to blend
with the fixtures, furnishings and car­
peting. The building is air condi­
tioned. A speaker system provides
background music at all times. The
building was designed by Bank Build­
ing and Equipment Corporation of St.
Louis, which also supervised construc­
tion.

N e b r a s k a G rou p M e e t in g s
Group officers of the Nebraska Bankers Association have announced
the following dates and sites for the 1961 group meetings :
April 20— Group One— Lincoln
April 22— Group Two— Columbus
April 22— Group Three— Norfolk
April 25— Group Six— Scottsbluff
April 27— Group Four— Hastings
April 28— Group Five— Grand Island
Northwest ern Banker, March, 1961

82

N ebraska

News

Cham bers
Vern Sageser has been elected a di­
rector of the Chambers State Bank.
All other directors and officers were
re-elected.
Clearwater
H. D. Miller was advanced from
cashier to president and cashier of the
Citizens State Bank of Clearwater at
the annual meeting of directors. He
succeeds Guy P. Miller, who was
named chairman of the board.
Colum bus
Citizens Bank

William Bates and Betty Kuta were
elected assistant cashiers of the Citi­
zens Bank of Columbus at the annual
meeting. All other officers and all
directors were re-elected.
Columbus Bank

Harold J. Luchtel has been elected
vice president of the Columbus Bank.
Mr. Luchtel previously was vice presi­
dent of the Bank of Leigh, having
been promoted to that position in Jan­
uary. He succeeds Lester E. Souba,
executive vice president, who has re­
signed to take over management of
the Ulysses State Bank as president.
Elgin
George A. Wright has retired as
president of the Bank of Elgin and has
sold his controlling interest in the
bank to R. K. Draper, Sr., Belden, and
R. K. Draper, Jr., executive vice presi­
dent and cashier of the bank.
Mr. Draper, Sr., was elected presi­
dent of the bank and Mr. Wright was
named chairman of the board. Mr.
Draper was president of the First Na­

tional of Belden until 1950 and has
served as president since that time, as
well as being active as a field repre­
sentative for Live Stock National
Bank of Sioux City. Mr. Wright has
lived in Elgin since the bank was
founded in 1935.
Fairbury
W. H. Else, assistant cashier of the
Fairbury State Bank, has been elected
to the board of directors, according to
President Irl R. Else.
Falls City
The Richardson County Bank made
plans at the annual meeting to install
a walk-up window on the north side
of its present bank building. George
Lyon, president, said the new service
was expected to be in operation the
latter part of February.
Grand Island
Preliminary plans for construction
of a new bank building at Third and
Cedar are being considered by officials
of the Commercial National Bank.
Frem ont
First National

Hugh Hansen, 33, who joined the
First National Bank of Fremont in
August, 1959, has been elected assist­
ant cashier by directors.
First State

James H. Moore, Jr., has been ad­
vanced from cashier to executive vice
president of the First State Bank of
Fremont. Succeeding him as cashier
is Floyd J. Sager, formerly assistant
cashier of the First National of Fre­
mont.

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ORDERS EXECUTED ON ALL PRINCIPAL EXCHANGES

CHILES-SCHUTZ CO.
O m a h a , N ebraska

L incoln , N ebraska

412 Farm Credit Building

203 Stuart Building

Phone 34 6-6677

Phone HEmlock 2-3325
C hadron , N ebraska

L exington , N ebraska

346 Main Street

Phone FAirview 4-3766

Phone HEmlock 2-5555

Northwestern
 Banker, March, 1961
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Directors also increased the surplus
from $35,000 to $60,000, for total capi­
tal and surplus of $110,000.
Gering
Bank of Gering

Two new directors added to the
board of Bank of Gering at the first
meeting in the new bank home are
Mrs. T. J. Lockwood, president of the
Lockwood Grader Corporation, and
William Grubbs, president of Fidelity
Title Insurance Company, Lincoln.
President Leo Van Dittie and all other
officers and directors were re-elected.
Open house was held recenty for
residents of Gering and surrounding
area. An open house for visiting bank­
ers was scheduled for March 4, accord­
ing to Mr. Van Dittie. Officers of
Central Bank and Trust Company,
Denver, planned to charter a bus for
the trip to Gering.
Gering National

Joe J. Huckfeldt and Melvin Mathis
have been elected assistant cashiers
of the Gering National, according to
Dale V. Sorensen, president. Mr.
Huckfeldt is agricultural representa­
tive for the bank. Mr. Mathis was
cashier of the Lisco State Bank. Les
C. Atkins, cashier of the Gering Na­
tional, resigned recently to become
cashier and managing officer of the
First National at Torrington, Wyo.
Hartington
Open house was held recently at the
Bank of Hartington to give customers
and other friends in the area an oppor­
tunity to see the newly remodeled in­
terior. A point of interest is a well
lighted relief map of Cedar County
and surrounding territory, mounted
on one wall, with a short history of
the county appearing at the side of
the map.
Hastings
Wallace J. Chaloupka was promoted
from assistant vice president to vice
president by directors of the First
National Bank of Hastings.
Charles E. Uerling, prominent direc­
tor of the bank, was featured in a spe­
cial article in the Omaha World-Herald
for his extensive activities throughout
the state in connection with encourag­
ing support for the bill to authorize
municipalities to issue bonds that
would provide local funds for indus­
trial development.
H em in gford
R. P. Stewart, cashier, Bank of Hem­
ingford, announced after the directors’
meeting that surplus had been in­
creased by $15,000 and capital from
$50,000 to $100,000 by a 100 per cent
stock dividend.

83

a S E R V IC E E V E R Y

B A N K E R NEEDS
Y ou r cu rrency sh ip m en t h as top priority.
W e ’ll a lw a y s go out of our w ay to e x p e ­
d ite your cu rrency orders. I f t h e r e ’ s an
em erg en cy . . . phone O m a h a 3 4 1 - 0 5 0 0 .

FIRST NATIONAL BANK OF OMAHA
16TH & FARNAM ■ OMAHA, NEBRASKA ■ MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION


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Federal Reserve Bank of St. Louis

Northwestern Banker, M a r c h , 1961

84

Omaha National Bank’s DriveT HE
In, Walk-In Bank was opened to
customers on Monday, February 20.
Located on the ground floor of the
eight-story Brandeis Parking Garage
at 17th and Douglas, the five drivein and eight walk-in teller windows
are open from 7:15 a.m. to 6:00 p.m.
Monday through Friday.
All bank functions except for the
services of the trust and safe deposit
departments and the making of loans
will be handled in the new bank.
However, payments on loans will be
accepted. The night depository in the
main banking building has been closed
and in its place a new night depository
has been opened at the entrance to the
Drive-In, Walk-In Bank.
As many as 24 cars can be accom­
modated at one time in the drivethrough portion of the new facility.
The entrances to the drive-in lanes are
on the west side of 17th Street be­
tween Farnam and Douglas. Cars go
through the lanes, make a right turn
and exit on Douglas.
The office of the new bank has space
for three officers desks in addition to
the eight walk-in teller windows. L. C.
McVea, vice president and cashier,
is the officer in charge of the instal­
lation. Victor W. Nielsen, assistant
cashier, is the operations officer.
An underground passageway con­

nual Ladies Night meeting of the East
Central NABAC group in Columbus
recently. She spoke on the subject of
public relations.
* * *
Federal charges were filed February
14 against two former employees of
the South Omaha Bank. Charged were
former assistant vice president Robert
J. Mangano, and former installment
loan clerk George H. Lavery. Each
man was charged with eight counts of
embezzlement and two of making false
nects the office with the basement of entries. It’s estimated by bank of­
ficials that about $10,000 was embez­
the main building of The Omaha Na­
zled.
tional, and is for the use of employees
* * =t=
only.
Fred W. Gilmore, president of the
* * *
Cecil W. Means, vice president of Union Stock Yards Company of Oma­
ha, has been elect­
the Stock Yards National Bank, was
guest speaker at the annual Dawson
ed to the board of
directors of the
County Feeders Dinner early last
month. The meeting was held in Lex­
Stock Yards Na­
ington.
tional B a n k of
* * *
South Omaha, ac­
cording to A. J.
Paul Pedersen, assistant vice pres­
Hallas, president.
ident of the First West Side Bank, has
Mr. Gilmore be­
been elected to the board of directors.
came president of
He has been with the bank four years,
the Union Stock
and has been in banking in Omaha
Yards C om pany
for 17 years.
F. W. GILMORE
>¡5 >|C
on F e b ru a ry 2,
Edwin N. Van Horne, who com­ 1961, following more than 25 years’
pleted a term as Nebraska director association with the Federal Land
of banking in January, has announced Bank Service of the Farm Credit Ad­
the formation of Van Horne Invest­ ministration. Most of that time he was
ments, Inc., with offices in the Farm with the Federal Land Bank of Oma­
ha.
Credit Building.
Mr. Van Horne is chairman of the
From January 1, 1958, until Febru­
firm. His son, John E., is president. ary of this year he directed the Land
The latter was vice president of J. Bank Service throughout the country
Cliff Rahel and Company, Omaha in­ as deputy FCA governor in Washing­
vestment firm, since its organization ton, D. C. Reared on a farm near
two years ago.
Williamsburg, Iowa, he commenced
>i= * *
his banking career at North English,
Mrs. Mary Gleason, assistant cashier Iowa. He joined the Federal Land
and advertising manager of The Oma­ Bank at Omaha in 1933. He was elect­
ha National Bank, addressed the an­ ed a vice president in 1955.

LEFT— Omaha National’s Drive-In, W alk-In Bank on the southwest corner of 17th and Douglas Streets. RIGHT— Floor plan of new
quarters, showing flow of auto traffic, and office facilities.
Northwest ern Banker, March, 1961


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Federal Reserve Bank of St. Louis

85

F e rn B arta, W orkin g S u pervisor, R etu rn Check D esk

She Works fo r You . . .
Prompt return of unpaid checks is important to every bank.

Direct

sending points and fast presentation time, together with Mrs. Barta’s
job, make for good transit service. It is her responsibility to speed unpaid
checks to you as soon as we receive them.

Our good transit service is

made possible by the skills and experience of people like Mrs. Barta.

T

h e

1 7 th a n d Fa

O
r n a m


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Federal Reserve Bank of St. Louis

m
S

a h a

t r e e ts

N

a t i o n a l

B

a n k

M em ber Federal Deposit Insurance Corporation
Northwest ern Banker, March, 7961

86

N EXCELLENT operating year
A
was described to stockholders of
First Continental National Bank &

B

Trust Company at the annual meeting.
C. W. Battey, chairman of the board,
presided at the meeting.

etter

c

correspondent

SERVICE
PHONE GRover 7-8911

NATIONAL

BANK

OF

MMERCE 13th
LINCOLN. NEBRASKA

Nort hwest ern Banker, March, 1961

0 Streets

DRIVE IN BANK 1227 P
P f■
«>ImirtiKi Corporal


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Federal Reserve Bank of St. Louis

(r

Increases in deposits, loans, earn­
ings and capital accounts were noted
by Burnham Yates, president, in giv­
ing his annual report. He informed
stockholders particularly of the activ­
ity of the bank since March 12, 1960,
when The First National Bank of Lin­
coln and The Continental National
Bank of Lincoln consolidated. Con­
solidation of banking activities was
accomplished with a remarkable de­
gree of smoothness, he said.
At year end deposits totaled $110,800,000, loans exceeded $53,000,000 and
ca p ita l funds stood at $9,198,000.
Growth in these totals was ascribed to
good economic activity during 1960 in
Lincoln and in Nebraska.
The importance of the consolidation
to stockholders of the bank and to the
financial affairs of individuals and
businesses in Lincoln and Nebraska
was outlined in the report.
The drive-in banking facility opened
at 13th and L Streets on March 12,
1960, has received, it was reported,
excellent customer acceptance. En­
largement and remodeling of quarters
for the bank’s trust department was
also completed during the year.
All of the bank’s directors and offi­
cers were re-elected.
* * *
Kenneth Olinger, national bank ex­
aminer in the Lincoln area, has been
named head examiner of national
banks in the Tulsa and Oklahoma City
area with headquarters in Tulsa. A
former employee of the First National
Bank of Tekamah, Neb., Mr. Olinger
left the bank in 1951 to become an
assistant examiner. In 1957 he at­
tended the Inter-Agency School for
bank examiners in Washington, D. C.,
and in 1958 graduated from the School
of Banking at Madison.
* * *
A bill that opponents declared would
open the door to branch banking has
been killed by the state legislature’s
banking, commerce and insurance com­
mittee, 9-0 following a public hearing.
The bill would have extended from
the present 2,600 feet to 7,500 feet the
maximum distance that may separate
a bank from its detached drive-in fa­
cility.
The bill was opposed by the Doug­
las-Sarpy-W ash ington-Burt County
Bankers Association, with W. E. Moor,
president of the Farmers State Bank
at Elkhorn, elected as president of the
four county group.
* * *
C. Wheaton Battey, chairman of the
First Continental National Bank and
Trust Company, was named “Boss of
the Year” by the Lincoln Junior Cham­
ber of Commerce at its Distinguished
Service Award Dinner. The award is
based on personal interest in the Jay-

87

fis h e r m a n
fa m ily m a n ...a n d
FIRST C O N T IN E N T A L
IN A T I O N

A

B A N K
REET

&

X

R

IJ S X

L I N C O L N ,

C O M P A N Y
N E B R A S K A

"b a n k e r -o n -th e -jo b ”
for y o u ...
LYLE STONEMAN
A believer in long-time propositions,
Lyle Stoneman has lived in Nebraska all his life
and began his career with First Continental
25 years ago. Lyle spends many of his
leisure hours reading— paperback Westerns
are a particular favorite. Three active
daughters have kept Lyle busy, but never too busy
to pull in big catfish from Johnson Lake
every sum mer. You'll enjoy working with
Lyle Stoneman, your First Continental
"banker-on-the-job.”


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Federal Reserve Bank of St. Louis

Northwest ern Banker, M arch , 1961

N ebraska

News

N eu %L o o k ni ÊOth a n d " O 93

TWO PERSPECTIVES, one o f the Crossroads Motel Hotel and patio drive-in facility
o f the National Bank of Commerce (le ft), and the other of the newly remodeled First
Trust Building (right) provides a view of how 10th and “ O” Streets in Lincoln will
appear as approached from the west.

The First Trust Company of Lin­
coln, Neb., has moved into its new
offices in the first four floors of the
newly modernized First Trust Build­
ing.
The 12-hour move, from one side of
the street to the other, was accom­
plished the night of February 3, 1961.
The First Trust Building occupies the
southeast corner of 10th and O Streets,
and was known formerly as the First
National Bank Building.
The interior of the new First Trust
Company offices are completely mod­
ernized, while the exterior will under­
go a face-lifting early this spring.
Bennett Martin, a Lincoln investor,
purchased the First Trust Building
last July for $400,000 and leased it to
the Recon Corp., headed by W. D. Ray,
who is renovating it.
The Recon Corp. is also constructing
the new Cross Roads Motor Hotel on
the northeast corner of 10th and O
Streets, which will face the First Trust

cee organization, on business success,
and past service in civic and profes­
sional activities.
* * *
The First Trust Company of Lincoln
unanimously re-elected its board of di­
rectors and reported promotions of
four staff members at the annual meet­
ing.
John C. Whitten, vice president in
charge of trusts, was named senior
tru st o f f i c e r .
E le c te d as new
trust officers were
V i n c e n t T.
Goeres, Carter Ri­
dings, and Robert
S. Hinds. Named

as a new sales
representative of
city real estate
was R. Morgan
j. c.

w h i t t e n

Batten.

Nort
ern Banker, March, 1961
Digitized
forhwest
FRASER
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Federal Reserve Bank of St. Louis

Building. The ground level of the
Cross Roads Motor Hotel will be the
patio drive-in facility of the National
Bank of Commerce, due for occupancy
in April, 1961.
The First Trust Company of Lincoln
now returns to its original corner of
operations when it started in business
50 years ago, come June 29, 1961. The
move was necessitated because of the
requirements for added space brought
about by expanded operations and in­
creased facilities for customer con­
venience.
The First Trust Company, in its 50
years, has grown to an institution
managing assets in a trust capacity
valued in excess of $60 million. In
addition, it also manages and sells an­
nually additional millions of dollars in
city and farm property, mortgages, in­
surance and investments. A new serv­
ice is the rental of safe deposit boxes.
Ninety-eight professionally tra in ed
personnel comprise the First Trust
staff.
President E. N. Thompson, in his an­
nual report, announced that the trust
department’s volume had reached its
highest point in history, necessitating
additional staff and also the installa­
tion of IBM equipment.

H um boldt
Joe Heineman has been advanced
from assistant cashier to cashier at the
Home State Bank, Humboldt. Mr.
Heineman is executive vice president
of the Dawson Bank and officer of the
State Bank of Elk Creek. He is also
secretary-treasurer of the Humboldt
Chamber of Commerce.
Leigli
Thomas J. Bradley was promoted
from assistant cashier to cashier by
directors of the Bank of Leigh. He
succeeds Harold J. Luchtel, who has
resigned to become vice president of
the Columbus Bank. Mildred Daniels
was also elected assistant cashier at
the Bank of Leigh. Directors in­
creased surplus to $35,000.
Lyman
John W. Lawyer, Jr., has been elect­
ed president of the Farmers State
Bank of Lyman. He succeeds J. W.
Sanford, who has resigned as presi­
dent and director after selling his
stock interest in the bank. Mr. Law­
yer previously was cashier.
Mr. Lawyer, F. H. Young, and Marks
O. Morrison, president of Coupla-Matic
manufacturing concern, were elected
directors.
N orfolk
The city council has approved rezon­
ing of a corner lot in the business dis­
trict to permit the De Lay First Na­
tional Bank to erect a one-story brick
drive-in bank building. The motor
bank will have two drive-in windows
as well as a walk-up window, and
parking facilities.
North Bend
Arden D. Wolf, president of the
Platte Valley Bank, announced recent­
ly the purchase by directors of the
building to the south of the bank and
plans to remodel and expand. Design
plans are being worked on at the
present time and construction work
will start as soon as possible.
Papillion
Miss Karen Rahn has been elected
assistant cashier of the Clarke Bank,
according to R. F. Clarke, president.
Clarke Becker of Ralston has been
elected to the board of directors.

GOERES

IDDINGS

HINDS

Included in this growth of the trust
department was another increase of
more than $1 million in the value of
the Common Trust Fund, established
seven years ago as the first in Nebras­
ka. The fund’s value is more than $7
million.

D Â k llf C
D A N I v d

BOUGHT
and S OL D

All Negotiations Confidential
A NATIONAL CLEARING HOUSE
FOR EXPERIENCED BANK EXECUTIVES
WITH CAP ITAL TO INVEST

Bankers
Service C
om pany
D e i M o in e i 5 , I o w a
P h o n e A T 2 -7 B 0 0

B ox 1 4 3 5

N ebraska

News

89

B a n k ers T ou r O m aha Y a rd s

Scottsbluff
Two new directors elected to the
board by stockholders of the Scotts­
bluff National are W. E. Skinner and
N. J. Kent. Mr. Skinner is owner of
Skinner Supply Company, a whole­
sale electrical supply firm. Mr. Kent
is owner of the Kent News Agency,
a distributor of newspapers and mag­
azines.
Directors increased s u r p l u s by
$100,000 to $500,000. Capital remains
at $30,000. H. D. Kosman, president,
reported to directors that the Motor
Bank opened in 1960 has met with
more customer approval than any­
thing the bank has ever done.

V IE W IN G yard operations are, from left: Hugh Campbell, Eugene Zaloudek, Cecil
Means, Wm. E. Moor, A. H. Denker, R. W. Suhr, Robert Fricke and W. H. Peterson.

Ulysses
Lester E. Souba has resigned as ex­
ecutive vice president of the Columbus
Bank at Colum­
bus following his
purchase of con­
trolling interest
in t h e Ulysses
S t a t e Bank of
U ly s s e s , Neb.,
from E d w i n A.
Krohn, a lso of
C olu m b u s. Mr.
Souba succeeded
Mr. K r o h n as
p r e s i d e n t on
March 1 and took over active manage­
ment at that time.
Emil L. Gruntorad will continue as
vice president and cashier. He and
Mr. Souba and Eleanor M. Souba will
form the board of directors.
Mr. Souba began his banking ca­
reer with the former Live Stock Na­
tional Bank of Omaha. From there he
went to Wisner as cashier for four
years at the First National. He re­
turned to Omaha to become assistant
vice president of the Packers National
before going to Columbus in 1958.

heard of “cook’s tours” !
Y OU’VE
Now there’s the “banker’s tour” !

Each month, correspondent bankers
are invited by the Stock Yards Nation­
al Bank in Omaha to tour the world’s
largest livestock and meat-packing
center. The purpose? To give the
bankers a better understanding of the
vast livestock business.
Seven southeast Nebraska bankers
donned top coats and overshoes Feb­
ruary 6 to accept the first invitation
of the year.
The group saw the cattle and hog
divisions of the market, witnessed the
unloading procedure, had luncheon in
the Exchange restaurant, toured the
packing plant of Swift and Company
and ended the day with a question and
answer session in the bank’s directors’
room.
C. W. Means, vice president, out­
lined the functions of the stock yards
company, commission men, dealers
and packer and order buyers. The
group observed actual trading between
buyers and sellers and witnessed live­
stock weighing, learned how livestock
is handled on receipt at the Omaha
stock yards and were told of the value
of accurate livestock market reports.
Eugene Zaloudek, assistant cashier,
assisted Mr. Means on the tour.
A.
J. Hallas, president, told the
group it is important for livestock
farmers to patronize central, competi­
tive markets such as Omaha because
its integrity and service has been long
established.
During lunch, F. E. Borchers, gen­
eral manager of Swift & Company and
a new member of the bank’s board of
YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE, VAULT AND
TIMELOCK EXPERTS

F. E. DAVENPORT & C O .
OMAHA

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Federal Reserve Bank of St. Louis

directors, told the bankers that “al­
though a high percentage of the meat
from livestock processed in Omaha is
sold in the east, the dollars spent for
that livestock here remain in the mid­
west to bolster its agricultural econ­
omy.”
Bankers who attended the tour are:
Hugh Campbell, vice president, Bank
of Bellevue; Robert Fricke, assistant
cashier, Farmers and Merchants Na­
tional Bank, Ashland; W. H. Peterson,
cashier, Farmers and Merchants Na­
tional Bank, Ashland; W. E. Moor,
president, Farmers State Bank, Elkhorn; A. H. Denker, cashier, The
Clarke Bank, Papillion; O. W. Julian,
cashier, Plattsmouth State Bank, and
Ronald W. Suhr, assistant cashier,
Gretna State Bank.
Other Stock Yards National Bank
officers who met with the group dur­
ing the tour were John McCumber,
senior vice president, and J. C. Karlik,
assistant vice president.
M errim an
Glenn K. Lahaye has been elected
cashier of the Anchor Bank at Merri­
man to replace C. A. Gaghagen, Jr.,
whose move to Central City was re­
ported in the February issue. Mr.
Lahaye formerly was assistant cashier
of the Gordon State Bank.
Directors increased capital of the
Anchor Bank from $50,000 to $100,000.

M O R E N E B R A SK A N E W S
O N PAG E 1 0 2

M onroe
Fred C. Harris, Jr., was named pres­
ident and chairman of the board at
the annual meeting by directors of the
Bank of Monroe. He fills the vacancy
created by the death in December of
his father. Ken Hurner was advanced
from cashier to vice president and
cashier.
Surplus of the bank was increased
by $5,000, making capital and surplus
of $70,000.
Northwest ern Banker, March, 1961

90

MANY IOW A BANKS ARE PARTICIPATING WITH OUR

New Profit Sharing Plans
Join the increasing number of Iowa banks
who have already benefited. You will be
surprised how inexpensively your bank can
adopt a profit sharing plan with our help.

Complete details on your desk in 24 hours
. . . just call Bankers Trust’s Cy Kirk or
Homer Jensen collect! CHerry 4-0331.

Have you analyzed your employee-relations
picture recently? Can your bank hold its
own in today’s competition for top-notch
manpower ? Can you improve upon employee
efficiency ?
Inquire about B a n k ers T r u s t Company’s
profit sharing and pension trust plans now.
They will help you keep key employees, and
give the man incentive to do a better job.

CYRUS D. KIRK

HOMER R. JENSEN

Bankers T rust Co.
The Des Moines Bank for YOU

Member: Federal Deposit Insurance Corporation • Federal Reserve System

Northwest ern Banker, March, Ï96I


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Federal Reserve Bank of St. Louis

91

Iow a

NEWS
RALPH EASTBURN
FRANK W ARNER

President
Secretary

Fairfield
Des Moines

A ijriciiltiira l
Con
H eld in A rnes , M a r c h 1 5 -1 6
Credit Needs for
the 60’s” will be the theme of a
new agricultural credit conference to
be held for Iowa bank officers and
directors in Ames on March 15 and 16.
Sponsored by Iowa State University
and the Iowa Bankers Association
through its agricultural committee and
Ag Credit School Committee, the con­
ference is to be held at the Memorial
Union which is located on the Univer­
sity Campus in Ames. The complete
program is as follows:

A

Thursday, March 16

g r ic u l t u r a l

Wednesday, March 15

A.M.
8:30 Registration desk opens, regis­
tration fee $3.
9:30 Coffee and doughnuts.
10:00

P.M.
1:30

“Farm Businesses Today”—E.
G. Stoneberg, agricultural econ­
omist.
“Livestock Production Costs To­
day”—H. B. Howell, agricultur­
al economist.
“Nutrition in Today’s Livestock
Programs” — William Zmolek,
animal husbandry.
“The Farm of Tomorrow” —
E b e r E ld rid g e , agricultural
economist.
“ Marketing Possibilities” — Lee
Kolmer, agricultural economist.
“Use of Dealer Credit by Farm­
ers”—
“What Our Studies Show” —
Richard Phillips, agricultural
economist.
“What the Potential Is” —
Christy Armstrong, Iowa-Des
Moines National Bank; Allen
Muir, Onawa State Bank; Ken
Stephens, PCA, Storm Lake.

6:30 Banquet, $3.
Address — “ Commercial Feed
Lot Developments on the West
Coast,” Dr. John Hopkin, chief,
Agricultural C o m m o d ity Re­
search Section, Bank of Amer­
ica, San Francisco.

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Federal Reserve Bank of St. Louis

A.M.
8:30

“Requirements for Economic
Growth in Iowa”—Wallace Ogg,
agricultural economist.
“Monetary Policy Development”
— Luther Pickrel, agricultural
economist, University of Min­
nesota.
“ The Farm Commodity Out­
look — 1961” — Francis Kutish,
agricultural economist.

P.M.
12:15 Luncheon, $1.50.
“Farmers’ Attitudes Toward the
Use of Credit” — George Beal
and Joe Bohlen, sociologists.
A ltoona
Clifford M. Custer has been elected
president of the Altoona State Bank,
replacing John F. Meilike, resigned.
C. Dean Trent, cashier, continues as
the active officer in the bank.
Anam osa
Leo J. Wegrnan, 86, former state
treasurer and prominent Iowa banker,
died at his home in Anamosa last
month. He was former chairman of
the board of the Citizens Savings Bank
in Anamosa.
He is survived by his wife, Ida;
three sons, Leonard J. and Edwin L.,
both of Anamosa, and C. M., of Evan­
ston, 111.; a daughter, Mrs. A1 W. Bird,
Dyersville, and several grandchildren
and great grandchildren.
B ettendorf
Robert C. Power, who has been vice
president and cashier of the Marion
County State Bank, Pella, has resigned
to accept a posititon as cashier of the
Bettendorf Bank and Trust Company.
B loom field
Ed W. Shaw, veteran banker of 43
years, has resigned as president of the
Davis County Savings Bank.
He was elected president in 1958,

succeeding P. T. Grimes, who retired.
Mr. Shaw began as a bookkeeper
when the bank employed only four
people and the assets amounted to
$400,000. At the present time 10 are
employed at the bank in Bloomfield
and the assets have increased to $4,151,587.
John M. Garrett has been named
president. He also will serve as chair­
man of the board of directors. S. L.
Sullivan was named vice president;
Virgil K. Hering, executive vice presi­
dent; Marvin Logan, cashier, and Mrs.
Martin Bond and Mrs. Dean Pitman,
assistant cashiers.
Blue Grass
R. J. Tangen was elected new presi­
dent and board chairman of the Blue
Grass Savings Bank at its annual
stockholders’ and directors’ meeting.
He assumes the position held by D.
O. Farley until his death in March,
1960.
Elton Farley was elected cashier
succeeding Mr. Tangen, and E. J. Hoffbauer was re-elected vice president.
Mrs. D. O. Farley was named a new
board member.
Surplus was increased from $150,000
to $175,000.
Burlington
Burlington Bank & Trust

Richard H. Stebbins, 42, of Minne­
apolis has been elected a vice presi­
dent of the Burlington Bank and Trust
Company, it was announced recently
by Wesley H. Swiler, president.
These other promotions were also
announced:
T. Hudson Swiler, from cashier to
vice president and cashier; Robert C.
Anderson, from assistant cashier to
assistant vice president; John L. Doo­
ley, from assistant cashier to assistant
vice president; Milton A. Thielbert,
from assistant trust officer to trust
officer.
A native of Minneapolis, Mr. Steb­
bins has been associated with banking
since 1946. He was officer in charge
of public relations for Northwestern
National Bank of Minneapolis and
worked in various departments of the
bank.
His job at Burlington Bank will in­
clude customer, public and employee
relations. Mr. Stebbins also will work
with the president and executive offi­
cers on commercial bank matters.
Mr. Stebbins now is president of
Richard Stebbins and Associates, a
bank public relations and operations
firm.
Farmers and Merchants

Charles H. Walsh, president, has an­
nounced the promotion of Otis C. Gesling as an assistant trust officer.
Northwest ern Banker, March, 1961

92

Iow a

News

Mr. Walsh also reported the acquisi­
tion of a new parking lot at the cor­
ner of Third and Market Streets.
Carroll
Joseph H. Gronstal was named presi­
dent of the Carroll County State Bank
at the annual meeting of directors and
stockholders.
Carl J. Hess, who has been president
for m any years,
was named chair­
man of the board.
In this position
he will be chief
execu tive officer
of the bank, work­
ing on a full-time
basis.
Mr. G ron sta l,
w h o has b e e n
vice president, ex­
J. H. GRONSTAL
p e cts to spen d
full time in the bank at the conclusion
of his term July 1 as State Superin­
tendent of Banking. He has served in
the state post since late in 1957 when
he was appointed by former Governor
Herschel Loveless.
Cedar Falls
President J. J. Kyhl of the Cedar
Falls Trust & Savings Bank reports
that plans were discussed recently con­
cerning construction of a new modern
bank building at 3rd and Washington
Streets. Possession of the building site
is to be obtained about May 1.
The new bank is to have four and
one-half times the size of the present
facilities, and it will have ample park­
ing and drive-in accommodations.
Cedar Rapids
Lawrence E. McGrath was elected to
the board of directors of the City Na­
tional Bank recently. He has been
cashier since the bank was organized
in 1957.
Michael E. Kelly, who has also been
with the bank since 1957, was named
an assistant cashier.
Carter Lake
Jack Eakin, president of the State
Savings Bank of Council Bluffs, has
announced preliminary plans for a
bank office in Carter Lake. If ap­
proval is granted by the Iowa State
Banking Department, a modern new
building will be constructed. The bank
operates three other offices.
Clerm ont
J. A. Erickson, vice president and
director of the Farmers Savings Bank,
Clermont, was recently presented with
a pen and pencil set by the Fayette
County Bankers Association on the oc­
Northwest ern Banker, M arch, 7961


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Federal Reserve Bank of St. Louis

casion of his 50th year in Iowa bank­
ing.
Mr. Erickson began his career as an
assistant cashier of the Clermont State
Bank in April, 1910. He was elected
cashier of the Farmers Savings Bank
in Clermont when it was organized in
July, 1913, and served in that capacity
until October, 1950, when he retired
from active banking.

Dows
H. W. Janssen, executive vice presi­
dent of the Farmers State Bank, re­
ports that the bank is doubling its
floor space by taking over the attached
building and is completely remodeling
its interior.
The main entrance is to be moved to
the north side of the street, and it will
consist of double aluminum doors with
sidelights and transom. A new canopy
will extend over it. The highlight of
the interior remodeling will be a new
37 foot counter. The contract has been
let to the Kirk Gross Company, bank
specialists from Waterloo.

C olum bus Junction
Officers elected for the Louisa Coun­
ty National Bank for 1961 are: J. C.
Richie, chairman; J. E. Henson, presi­
dent; J. D. Helmick, vice president, and
F. C. Spaeth, assistant cashier. Mar­
Eldon
garet Differ serves as bookkeeper.
Leonard E. Wells was recently pro­
moted from assistant cashier to cash­
ier of the First National Bank, Eldon.
D avenport
Davenport Bank & Trust

Seventeen promotions and a report
of one of the best years in the bank’s
history highlighted the annual stock­
holders’ and directors’ meeting of the
Davenport Bank and Trust Company.
Promotions include: E. W. Braack,
from vice president to senior vice pres­
ident; E. H. Ketelsen, vice president
and cashier, to senior vice president
and cashier, and James F. Gruenwald
and Richard E. Kautz, from assistant
vice presidents to vice presidents.
New assistant vice presidents are:
John K. Figge, Chester A. Lagoni,
James E. Shrader, William C. Steele
and Richard O. Witt. All except Mr.
Figge were assistant cashiers.
New assistant cashiers are: James
F. Grothusen, Robert S. Longley,
Wayne F. Lowden, Vincent C. Michael,
Frederick P. Myatt, Robert V. Oakes,
Ralph H. Ricketts and William Ruhde.
Northwest Bank & Trust

Eldora
A grand opening was held last
month at the new motor bank erected
by the Hardin County Savings Bank.
A drive-up window and vestibule for
walk-up customers has been installed
in a former service station 32 by 24
feet in size. The equipment, which in­
cludes a burglar alarm, was furnished
by Diebold, Inc., Canton, Ohio.
Fairfield
A. G. Jordan has retired from the
board of directors of the First Nation­
al Bank after serving for more than
40 years.
Two new directors were elected: E.
G. Rodibaugh, executive vice presi­
dent, and Dr. Jay Q. Bell, local veteri­
narian.
Fort Dodge
Peter Garatoni, vice president and
cashier of the Union Trust & Savings
Bank, reports an increase in surplus
of $50,000, making a total surplus of
$300,000. Capital is $250,000.

Three officers of the Northwest
Bank & Trust Company have been
named to new positions, according to
W. F. Meiburg, president.
B.
F. McGee, formerly vice president Harcourt
and cashwier, is now senior vice presi­
An extensive remodeling program
dent and cashier; F. W. Yeadon, Jr., was recently completed by the Har­
was promoted from vice president to court Savings Bank.
executive vice president and trust offi­
The bank’s building was given a
cer, and Auditor E. F. Moeller, Jr., completely new front, a new addition
was named comptroller.
to the rear, and the interior was re­
Chester U. Schaefer retired as vice arranged and decorated. The front
president at the age of 74. He had was faced with light brick and glass
served the bank for the past 12 years. block, and a new recessed entrance re­
places the old doorway.
D ecorah
J. Norman Lee, vice president, De­
corah State Bank, last month observed
his 45th anniversary with the bank.
He started as a messenger boy and
bookkeeper in 1916. He progressed
steadily to teller, assistant cashier, and
in 1956 to vice president.

Hawkeye
Work was started recently on a com­
plete remodeling job for the Citizens
Savings Bank. The project will be
finished about June 1.
Everything will be new from front
door to back, except the vault which

93

No. 3 in a Series

1917 Chandler
Owner: Joe Jones
Member of the Des Moines Horseless Carriage Club

This 1917 Chandler marked the opening of a new period
in the history of automobiles in America. It was pow­
ered by the first motor to be put through the gruelling
Pike’s Peak endurance test. Today, 44 years later, this
same test is still being used in evaluating the power
and capacity of modern cars.
In 1917, when this Chandler was introduced,
the Valley Bank had already been a part
of Iowa banking history for 45 years . . .
with progressive, forward-looking service to
banks throughout the state.

A N D

T R U S T

C O M P A N Y
Des Moines, Iowa

Walnut at Fourth
F.D.I.C.


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

Northwest ern Banker, March, 1961

94

low a

News

was new two years ago. A new mod­
ern front and entrance, two new pri­
vate conference rooms, with walnut
counter and more windows to serve
customers, lower ceiling with new
lighting, new heating and air condi­
tioner, with walnut paneling on walls
and new furniture are planned.
Volney Palmer is cashier and L. E.
Billmeyer is executive vice president.
The contract was awarded to the Kirk
Gross Company, bank specialists of
Waterloo.

vice president and auditor, and T. J.
Nicholls was advanced from assistant
cashier to cashier.
Jefferson
William Kuehn has joined the staff
of the Jefferson State Bank, according
to President Thomas 0. Cooper.
Mr. Kuehn was formerly associated
with the Brenton State Bank at Dallas
Center. He is a graduate of Iowa
State University, Ames.

Jewell

by Harold Johnson, Knoxville attor­
ney and bank board member, who was
designated to announce the result of
the board’s morning meeting.
Mr. Collins, a native of Knoxville,
has been the bank’s vice president for
about 10 years.
Mr. Collins is a World War I veter­
an, a First Methodist Church trustee,
a former officer in several Boy Scouts
of America organizations and a mem­
ber of several Knoxville clubs.

H um boldt
Th new hank building erected by
the First National Bank has been com­
pleted and business is now being con­
ducted in the new quarters. B. P. St.
John is president. Mosler equipment
was used in the installation.

Carl Queensland has been elected
president of the Farmers State Bank
to succeed the late Otto Fenton.
G.
C. Rorem was re-elected vice
president and ca sh ier, and Lloyd
Walker was again named assistant
cashier.

Larch wood
Harold R. Bonander, newly elected
president of the Security Savings
Bank, has announced the promtion of
Emil I. Bjork to cashier, and the ad­
vancement of Mrs. Beverly Schreurs
to assistant cashier.

Indianola
Five officers of the Peoples Trust &
Savings Bank have been promoted, ac­
cording to William Buxton III, presi­
dent.
James Davies, Richard Haldeman
and Wyman Smith were advanced
from assistant vice presidents to vice
presidents; L. V. Van Syoc was pro­
moted from cashier and auditor to

K noxville
Jackson L. Collins, 68, vice president
of the Community National Bank &
Trust Company, was elected president
at a meeting of the bank board recent­
ly. He succeeds Eldon L. Job, 59, who
hanged himself last month after con­
fessing embezzlement of about $700,000 from the bank.
Mr. Collins’ election was announced

Mason City
Robert H. Isensee, president of the
United Home Bank and Trust Com­
pany, was recently re-elected president
of the Mason City Development Asso­
ciation.
Marshalltown
R. M. Wilson, executive vice presi­
dent of the Security Savings Bank,
reports an increase in capital from
$300,000 to $400,000. Surplus is $300,000, and undivided profits, $442,327.
Martelle
Officers of the Farmers Savings
Bank, Martelle, have announced tenta­
tive plans for modernizing the bank
building. Work is expected to start
soon.

A M E R IC A N T R U S T L E A D S THE WAY

In Dubuque

Miles
The Miles Savings Bank held open
house last month observing the com­
pletion of the new bank building, ac­
cording to LeRoy Mohr, cashier. The
building was constructed by Becker
Associates and the equipment was fur­
nished by Mosler Safe Company, Ham­
ilton, Ohio.

• Central in location — always quickly
a v a ila b le — A m erican T rust is your
strong, reliable, interested financial
frien d — w here p rogress and tru st­
worthiness go hand-in-hand.

AMERICAN TRUST AND SAVINGS BANK
Member Federal Reserve System
Member Federal Deposit Insurance Corporation

u~

Mount V ernon
J. A. Fordyce, vice president and
cashier of the Mount Vernon Bank
and Trust Company, reports that the
bank’s capital has been increased from
$50,000 to $100,000 through a common
stock dividend. One additional officer
was named by the directors. Roy A.
Nelson was elected vice president.
Muscatine
Five new directors and one new offi­
cer have been named by the Musca-

Nort hwest ern Banker, March, 1961

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Federal Reserve Bank of St. Louis

Iow a

tine Bank and Trust Company. The
new directors are: John P. O’Meara,
Cyril P. Roberts, John L. Klein, Frank
J. Turk, and Carl J. Spaeth. The 10
previous directors were re-elected.
Margaret Kranz was promoted to as­
sistant cashier.
Newton
Jimmy L. Menges was elected an
assistant cashier of the Jasper County
National Bank recently, according to
C. R. Bailey, vice president and cash­
ier.
Northw ood
Richard H. Johnson has been elected
to the board of the Northwood State
Bank, according to D. W. Backstrom,
cashier. The board now his six mem­
bers.
O debolt
D. J. Larson, retired plumber, was
elected a director of the Odebolt State
Bank recently, replacing Ira Martin,
who retired last fall as vice president
and director. Mr. Martin is now re­
siding in Mountain Home, Arkansas.
Oskaloosa
Russell S. Howard, Jr., was recently
advanced from assistant vice president
and trust officer to vice president and
trust office of the Mahaska State Bank.
The board of directors has approved
the purchase of two buildings by the
bank which will be razed during 1961
to make room for a customer parking
lot.
O x fo rd
G. F. Haas, president of the First
Trust and Savings Bank, died last
month at the age of 86. Mr. Haas
came to Oxford from Nebraska in 1933,
serving as cashier and later as presi­
dent.
Perry
The First National Bank has ac­
quired the building next to the main
bank building and plans an expansion
program, including drive-in facilities.
Brooks Borg in Des Moines has been
named architects.

News

95

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8

J! ¡N J

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a

sign
of

service
The new 80-foot Security National Bank
sign not only adds distinction and color
to the corner of Sixth and Pierce Sts.

!I

but performs a valuable service as weil.
A correct reading of the time and tem­
perature are given every five seconds

L
=3 [

a
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in flashing lights visible in each direc­
tion.

Be Our Guest
Next time you are in Sioux C ity
we would like to have you stop
and inspect our new sign. You
are especially invited to make
use of the Sioux C a r Park
G arage at Seventh and Pierce
Streets and to make the Secu­
rity National your headquarters
whenever you are here. Please
feel free to drop in any time.

Prairie City
Robert T. Sherwood of Monroe was
elected an assistant cashier of the
State Bank of Prairie City last month,
according to C. A. Rowe, cashier. Mr.
Sherwood was in his own business in
Monroe. Previous to that time he was
employed at the Community National
Bank, Knoxville.

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

Northwest ern Banker, March, 1961

96

NEW OFFICERS of Group 1 are Clark Arnott (le ft), pres.,
Sac City State Bank, Secretary, and Herb P. Knuth, pres.,
Holstein State Bank, chairman. RIGHT— Lyle O. Arp, a. c.,
1st National, Manning, is registered by hosts Ernest A. Kenny,

72.~>

R egister fi roup

N OUTSTANDING array of speak­
A
ers and spring-like weather com­
bined to bring 725 registrants to the
annual meeting of Group 1 of the
Iowa Bankers Association in Sioux
City last month.
Herb P. Knuth, president of the Hol­
stein State Bank, was elected chair­
man of Group 1, succeeding Gordon
L. Mennen, president of LeMars Sav­
ings Bank. Clark Arnott, president of
the Sac City State Bank, was named
secretary to replace Mr. Knuth.

BANK

EXECUTIVES
“ Leaders Choose Leaders”
TO P

M EN — A t every

C a d illa c

level

know th at

has the w id est choice

best a va ilab le

positions in the

field — positions

of the
banking

throughout the

nation

with growth organizations offering ch al­
lenging work and top earning p o tential.
L E A D IN G

B A N K S — Be

they

large

or

small, know th at C a d illa c ’s 35 y e a r repu­
tation has been built on effe ctive co n fi­
dential service to the em ployer looking
fo r the right man.
B O TH T O P M EN A N D L E A D IN G B A N K S
— know

th at

v. p. and cash., 1st National, and Tom C. Horn, v. p., Security
National, Sioux City, after Orval Spahn (righ t), v. p., 1st
State, Mapleton, receives his registration badge. Attendance
topped the 700 mark again.

th e ir

confidence

is

M e e tin g

Hosts for the meeting were the
seven Sioux City banks through their
Clearing House Association.
Ralph Eastburn, president of the
Iowa Bankers Association and presi­
dent, Iowa State Bank & Trust, Fairfield, reviewed bills under considera­
tion by the legislature that affected
banking. He said the moneys and
credits tax should be repealed because
it is driving money out of Iowa banks.
Joe H. Gronstal, Iowa superintend­
ent of banks, and recently advanced
to president of the Carroll County
State Bank, announced that he plans
to return to the Carroll bank upon
completion of his term as superintend­
ent, July 1, so he may devote more
time to his duties at the bank and to
his family.
Tilden Cummings, president of the
Continental Illinois National Bank and
Trust Company, Chicago, cited six rea­
sons why some people are optimistic
about the near future and six reasons
for the view of pessimists. He added,
“My own view is that the optimists
have a better case than the pessimists.
While siding with the optimists, I do
feel that the recovery most likely will
be moderate and gradual.”
Mr. Cummings foresees continued
good farm income during 1961 as held

true in 1960.
He does not expect interest rates to
show any major changes for awhile,
although some moderate interest rate
decline may take place, especially in
the long term area. Mr. Cummings, in
referring to the federal budget, said
prospects for a balanced budget are
good if the recession bottoms out soon.
“ If the economy worsens,” he said,
“the possibility of a large deficit is
strong.” In regard to the balance of
payments problem he said, “ Our really
basic problem is to maintain confi­
dence both at home and abroad in the
dollar. . . . We must have priorities in
our spending and live within our
means.”
L. Shirley Tark, chairman of the ex­
ecutive committee of Main State Bank,
Chicago, and one of the foremost crit­
ics of inequality of taxes among finan­
cial institutions, predicted that Con­
gress will pass this session legislation
that will require savings and loan as­
sociations and mutual savings organi­
zation to pay their full share of federal
income taxes. He said these organi­
zation, with combined resources of
nearly $100 billion, had paid federal
income taxes for 1959 of less than $6
million.
An unexpected addition to the pre-

well

placed with the nation's largest executive
and professional p lacem ent service.

Whatever your requirements
contact us in absolute
confidence without obligation
A R V ID D. J O H N S O N
Personal Consultant to the Banking Field

MORRISSEY & CO.
M U N ICIP A L

Cadillac
Associates, Inc.*
29 East Madison Bldg.
Chicago 2, 111.
Financial 6-9400
*W here M ore Executives Find Their Posi­
tions Than Anywhere E lse in the World.

Northwest
ern Banker, March, 1961

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Federal Reserve Bank of St. Louis

BONDS

EX C LU SIV ELY

Davenport Bank Building

DAVENPORT, IOW A

Phone 326-2356

97

LEFT— George E. Hicks, dir., Cherokee State, Cherokee; A.
P. Andersen pres., Butte State, Butte, Nebr.; Charles H. Walcott,
pres., Security National, Sioux City; Eay Erlandson, v. p., Chero-

kee State, and Len E. Moeller, asst, sec., St. Paul Companies, St.
Paul, Minn. RIGHT— Bruce Thomas, v. p., Omaha National,
Omaha, and Cliff Adams, pres., Live Stock National, Sioux City.

LEFT— Iowa officials of U. S. Savings Bonds division: Glenn
Ingle, state director; Marvin M. Schmidt, state chairman and
v. p., Deere & Co., Des Moines, and L. L. “Doc” Lawler, rep-

resentative. RIGHT— Vern Mouw, v. p., 1st National, Sioux
Center; Stanley W. Evans, 1st v. p., Live Stock National,
Sioux City, and Howard M. Logan, v. p., 1st T & S, Moville.

LEFT— C. E. Aronson, a v. p., Toy National, Sioux City; C.
Cliff Fritcher, v. p., Security T & S, Storm Lake, and v. p.,
Iowa Bankers Association; Calvin D. Johnson, executive assist­
ant to the vice president of Remington Rand, Washington,
D. C., who was the banquet speaker, and Carleton C. Van Dyke,
pres., Toy National. RIGHT— Other out-of-state speakers on

the program were: Royal L. Coburn, general counsel, F.D.I.C.,
Washington, D. C.; L. Shirley Tark, chmn. exec, committee,
Main State Bank, Chicago; Tilden Cummings, pres., Continental
Illinois National B & T, Chicago, and Charles J. Scanlon, 1st
v.p., Federal Reserve, Chicago. Association officers and State
Bank Superintendent Joe Gronstal completed the program.

viously announced program was Royal
L. Coburn, general counsel for the
FDIC, Washington, D. C. Mr. Coburn
was in northwest Iowa in connection
with payment of depositors of the de­
funct Sheldon National Bank. He ap­
peared on the program twice, and em­
phasized that the responsibility for
management of banks is in the hands
of the board of directors. He stated
the directors should not look to super­
visory authorities to impose the type
of operations that will forestall defal­

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Federal Reserve Bank of St. Louis

cations such as occurred at Sheldon.
Mr. Coburn noted that from 1921
through 1932, 10,484 banks in the
United States were closed. In the pe­
riod from 1933 to the present, a span
of 27 years (year-end totals), only 408
banks have been closed for various
reasons.
Charles J. Scanlon, first vice presi­
dent of the Federal Reserve Bank,
Chicago, told the group, “Actually, it
would be possible for us to operate
our monetary system without any gold

reserve. However, it seems to me
that this isn’t the right time to abolish
it, principally for psychological rea­
sons.” Mr. Scanlon discussed the func­
tion of gold in our economy as it re­
lates to domestic money and interna­
tional payments.
All business sessions, the luncheon
and banquet were held in the spacious
municipal auditorium. The social hour
was held at Hotel Martin. A special
luncheon and program was presented
for the ladies at the hotel.—End.
Northwest ern Banker, March, 1967

98

Iow a

News

F in an cin g A id s B r itt F irm

Joins Illinois Bank
H.
D. Wilcox has resigned as cashier
of the Peoples State Bank, Winthrop,
Iowa, to accept the position as execu­
tive vice president of the Bank of
Oquawka, 111.

Bock Rapids
John DeWild was elected to the
board of directors of the Rock Rapids
State Bank, according to Laverne H.
Sawyer, executive vice president.
Mr. DeWild is a senior partner of
the firm DeWild, Grant, Reckert and
Stevens, engineers and architects in
Rock Rapids.

Rolfe
A new 500 square foot addition is
being completed at the Rolfe State
Bank. During the remodeling the bank
has used temporary quarters in the
Iowa Electric Light and Power Com­
pany building.

Sheldon
Citizens State Bank
NEW FIRM’S product is

inspected by (left to right)
F. A. Rummel, pres., First
St. Bk., Britt; C. F.
Armstrong, v.p., IowaDes Moines Natl. Bk., and
Owner John Threlkeld.
o r t h w e s t e q u it y c o r po ­
r a t i o n , a small business invest­

N
ment

company, recently p ro v id ed
equity financing to Britt Tech Corpo­
ration of Britt, Iowa. This business,
headed by John Threlkeld, president,
manufactures and distributes a high
pressure cold water cleaning machine.
The machine, equipped with a remote
control handle, mixes a detergent and
cold water under high pressure and
supplies a fine, flat discaling spray
which cleans faster than a brush op­
eration. It has a variety of applica­
tions, being used in cleaning automo­

biles, interiors of meat trailers, refrig­
eration equi pment, egg breaking
plants and other equipment.
The financing of the Britt Tech Cor­
poration was arranged by the First
State Bank of Britt through the IowaDes Moines National Bank. North­
west Equity Corporation is sponsored
by Northwest Bancorporation. Li­
censed by the Small Business Admin­
istration, Northwest Equity Corpora­
tion makes investments in convertible
debentures of small business concerns
without restriction to type of business
or class of industry.

M u n ic ip a l B o n d s

A new state bank has been approved
by the Iowa State Banking Depart­
ment to replace the defunct Sheldon
National Bank closed January 16 by a
$2 million embez­
zlement.
The new institu­
tion will be called
the Citizens State
Bank and it will
be a member of
the Federal Dep o s i t Insurance
corporation.
Keith Campbell
of
Des Moines, as­
K. w. CAMPBELL
sistant vice presi­
dent of the Iowa-Des Moines National
Bank, will be president and active op­
erating executive. Other officers are
Robert Dixon, president of the Rolfe
State Bank, and J. L. Campbell, vice
president of the Humboldt Trust and
Savings Bank.
The new bank received its charter
with capital of $100,000, surplus of
$100,000, and undivided profits of $50,000. Stockholders have purchased the
building and e q u ip m en t formerly
owned by the Sheldon National Bank,
and it is planned to open the bank
within 30 days.
Security State Bank

(p e c k e r

&.

818

ow m e

Insurance

nc.

E xchange Building

D es M oines, Iow a, P hone C H 8 -5 1 8 9

C.
L. Schneider, president, has an­
nounced the election of Chas. H. Han­
son as a new director. He replaces
W. B. Ellerbrock, retired.
Y O U R STATE B A N K ER S A S S O C IA T IO N
O F F IC IA L S A F E , V A U L T A N D
TIM ELO C K EXPERTS

F. E. DAVENPORT & CO.
OM AHA

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Federal Reserve Bank of St. Louis

99

Here's the Banker-Purina team in action . . . completing financial
arrangements for a Purina Dealer, who works with his local
bank, and in which United States National participates. In the
picture, left to right, are B. B. Bowman, Purina Divisional Sales
M anager; J. W . Davis, President, Citizens Savings Bank of
Avoca, Iowa; Mr. Vogel; J. G . Smart, Purina Credit M anager
in O m a h a ; W a y n e M. Thorndyke, V ice-P resid en t, United
States National.

“ T H R E E -W A Y B A N K ER -P U R IN A TEAM
S E R V E S ‘H E A R T O F C A T T L E C O U N T R Y ’ ”
...

s a y s D e a n V o g e l, E x e c u t i v e V i c e - P r e s i d e n t

T h e U n ite d S ta te s N a tio n a l B a n k o f O m a ha

r

tal can be provided in this way.

“ The United States National Bank,
local bankers and sales and credit
executives of Ralston Purina Com ­
pany form a smooth-running team
that has helped farmers in this re­
gion to develop beef production into
big business,” says M r. Vogel. “ The
feedlot of today takes big thinking,
big action and big m oney.”

As a correspondent bank, United
States National has enabled local
bankers and Purina Dealers to serve
agriculture in Io w a , N eb rask a ,
Kansas, South D akota, Colorado
and W yoming.

H e r e ’ s how the tea m op era tes:
When a project needs substantial fi­
nancing, the local banker and Purina
executives discuss it with officers of
United States National. W hen de­
tails are in order, financing is done
through the local Bank, with United
States National carrying the por­
tion above the local Bank’s limit.
Both refinancing and venture capi-

Participation loans of the United
States National Bank have doubled
in the last two years. This reflects the
development of agriculture and the in­
crease of its credit needs. “ Banking,
industry and agriculture are working
together to make our region grow,”
says M r. Vogel. “ Banking, and all
business in Omaha, thrives as agri­
culture prospers.”

PURINA..

.YOUR


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Federal Reserve Bank of St. Louis

PARTNER

IN

*

*

S ERV I NG AN I MAL

*

*

AGRICULTURE

Northwest ern Banker, M arch . 1961

100

VISITING BETWEEN SESSIONS at Group 11 meeting were,
left to right, James Coquillette, v.p., Merchants Natl., Cedar Rap­
ids; Leonard Broulik, v.p., Merchants Natl., Cedar Rapids; Paul
C. Hodge, v.p. & general counsel, Fed. Reserve Bk., Chicago;

Vincent P. Cullen, pres., Natl. Bk. of Burlington; Wes Swiler,
pres., Burlington Bk. & Tr. Co.; Dr. Earl Butz, dean of the agri­
cultural school, Purdue University; E. A. Hayes, chmn., New
London St. Bk., and Hud Swiler, cash., Burlington Bk. & Tr. Co.

Set Group 11 Attendance Record
EARLY 550 bankers and their
N
wives set a new 71-year attend­
ance record in Burlington last month
at the annual meeting of Group 11 of
the Iowa Bankers Association.
Encouraged by an outstanding pro­
gram, headed by Dr. Earl Butz, head
of the Purdue University Agricultural
School, the record crowd took advan­
tage of nice weather and unusually
fine driving conditions to gather for

Quality Equipment
At Sensible Prices!
T ry An A.B.E.
E le ctric
Ch eck
P e rfo ra to r

NEW OFFICERS elected by Group 11 were
Chairman Frank Kos, v.p., Washington St.
Bk., and Charles Walsh, pres., Farmers &

Merchants Sav. Bk., Burlington (left).

Desk Model
Trouble FREE
— Fast —
No O p e ra to r
Fatigue

FR E E T R IA L !

W R IT E T O D A Y !

American Bank Equipment
Perfnratnrs
By

BUD GBEENSPAN
4775 D ecatur, Om aha 4, N ebraska
Coupo n Loan Systems
C h ec k Endors ers, Signers
Certifi ers and Numbering Machines
Pape r C u tt e r s and S h re dde rs
★
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Prom pt S e rv ice On All M akes Check
C a n cellin g P e rfo ra to rs

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Federal Reserve Bank of St. Louis

the pre-convention activities spon­
sored by the Burlington banks and to
attend the business and luncheon
meetings the following day.
Frank L. Kos, vice president of the
Washington State Bank, Washington,
was elected as the new chairman of
Group 11, and Charles H. Walsh, presi­
dent of the Farmers & Merchants Sav­
ings Bank, Burlington, was named
secretary.
Headline speakers at the business
meeting included Ralph Eastburn,
president of the Iowa State Bank &
Trust Company, Fairfield, and presi­
dent of the Iowa Bankers Association;
Charles Atwell, president, Mount
Pleasant Bank & Trust Company, and
chairman of Group 11; Joe H. Gronstal,

president of the Carroll County State
Bank, and superintendent of banking
in Iowa; Glenn L. Ingle, Iowa Savings
Bond Director, and Frank Warner, sec­
retary of the Iowa Bankers Associa­
tion.
Dr. Earl Butz presented an optimis­
tic report on the agricultural situation
in America at the Group’s annual
luncheon, giving his views on what
might be expected from the new ad­
ministration.
President Ralph Eastburn and Sec­
retary Frank Warner presented indi­
vidual reports on current bills in the
Iowa legislature, explaining the man­
ner in which the 51 member legislative
committee is working under the direc­
tion of Committee Chairman Charles
H. Spies, president of the Iowa Trust
and Savings Bank, Emmetsburg.
The Group made plans for the an­
nual sports day to be held in Keokuk
and named Bill Logan, assistant to the
president of the State Central Savings
Bank in Keokuk, as chairman of the
committee.

Burlington Opening
Bankers attending the Group 11
meeting in Burlington had an oppor­
tunity to visit the new banking quar­
ters recently completed by the Bur­
lington Bank and Trust Company. One
of the unique features of the building
is a large community room in the
basement. The bank sponsored a
breakfast for nearly 200 Group 11 dele­
gates in this room.

Iow a

Sidney

Sioux City

J. H. Pullman, Jr., has been elected
president of the Fremont County Sav­
ings Bank, replacing his father, J. H.
Pullman, Sr., who has been named
chairman.

The Seventh Women’s Finance For­
um is being sponsored by the Security
National Bank. The forum will con­
sist of a series of three discussions on
Tuesday of each week during March.
There will be a morning and evening
session so that women may have a
choice as to when they wish to attend.
Miss Frances Baker of the First Na­
tional Bank, Minneapolis, is to appear
at the first weekly discussion.

The senior Mr. Pullman has been in
the Sidney bank since 1919. He is cur­
rently a member of the Iowa State
Banking Board. The new president
started with the bank in June, 1935.
Mark Orr, who has been with the
bank since September, 1935, was
named vice president and cashier.
Morgan Monroe and James Beneke
were advanced from assistant cashiers
to assistant vice presidents.

Stanton
Jim Grotenhuis, cashier of the Se­
curity State Bank, reports that the
bank recently increased its surplus to

News

101

$50,000. Capital is also $50,000. The
bank observed its 10th anniversary in
November, 1960.

T raer
The Farmers Savings Bank of Traer
has announced plans for the relocation
of the bank in the building vacated
by the Traer-Garrison Co-op Dairy, lo­
cated on the east end of the business
district. The bank recently purchased
the building.
The 60 by 90 foot former creamery
building will give the bank enough
space to expand, and new services will
include a drive-in teller window, night
depository and additional safety de­
posit boxes.

,

Sickness Accident and Hospital
Insurance for Select Risks
More than 50 years of successful service to
Bankers and other select risks, with protection
at cost.
Write for application and literature.

PAUL CLEMENT, President

MINNESOTA COMMERCIAL MEN'S ASSOCIATION
2 2 5 0 Pillsbury Ave.


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Federal Reserve Bank of St. Louis

Minneapolis 4, Minn.

Northwest ern Banker, March, 1961

102

NEBRASKA NEWS . . .
(Continued from page 89)

Ravenna
James H. Oliver of Grand Island and
David L. Stuckey of Lexington, both
former Nebraska state bank examin­
ers, have purchased controlling inter­
est in the Ravenna Bank. Mr. Oliver
was named executive vice president
and Mr. Stuckey vice president and
cashier.
The two men purchased the stock
from Charles Zimpfer, cashier since
1935, and A. J. Hervert. The latter
continues as president and Mr. Zimp­
fer will serve as chairman of the
board.
Mr. Oliver and Mr. Stuckey also

were elected to the board of directors,
along with Lyle Stoneman, vice presi­
dent of First Continental National
Bank and Trust Company, Lincoln.
Retiring from the board but still re­
maining as stockholders are: B. D.
Wedemeyer, Frank Trubl, James Her­
vert and J. J. Hervert.

Directors of the Stockmen’s Na­
tional Bank elected H. A. Dale presi­
dent, Bennet Johnson vice president
and cashier, and Ivan Wezniak and
Stuart Johnson assistant cashiers.

burg area had an opportunity to view
the beautiful new building erected by
the Stromsburg Bank when they were
invited to an open house by President
Charles E. Moyer and other officers
and directors.
The teller area provides five win­
dows at a multi-sided counter finished
in walnut. The vault is constructed
at the rear of this teller area. Two
new loan offices and a comfortable
reception area also are available to
credit customers.
This year marks the 80th anniver­
sary of the Stromsburg Bank.

Stromsburg

Tilden

Rushville

The banking public in the Stroms-

FOR QUICK
RETURNS
Specify Drovers Service
Drovers is strategically located at the very hub
of a tremendous industrial empire . . . the
Union Stock Yards, the Packing Houses, the
Central Manufacturing District and the great
industrial areas of the South Side.

BERNARD MILLER, A s­
sistant vice p r e sid e n t,
representing The Drovers
Banks in Iowa, will be
happy to show you how
Drovers can sa v e you
time and money.

Friendly service
to Livestock Producers
fo r more than
75 years

Many banks and firms are using Drovers
direct collection service because of its con­
venience and speed. Drovers is, also, collecting
agent for a large number of firms located in this
thriving industrial area.
M ay we serve you, too?

Continuous service
to correspondent hanks
since February 12,
1883

Drovers Banks
Drovers National Bank • Drovers Trust & Savings Bank

U N I O N S T O C K Y A R D S , C H I C A G O 9, I L L I N O I S
MEMBERS, FEDERAL DEPOSIT INSURANCE CO RPO RATIO N

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Federal Reserve Bank of St. Louis

Drive-in service became available to
customers of The Tilden Bank early
last month. The drive-in window is
located on the north side of the bank
building, adjacent to the customer
parking lot, according to G. P. Bau­
man, executive vice president. Open
house was held so patrons could get
a first-hand look at the entire installa­
tion. Gifts were presented to the first
100 men and first 100 women to use
the new facility.

Wausa
N.
T. Tiemann, president of the
Commercial State Bank, has been ap­
pointed stand-by state treasurer. This
is in accordance with the Nebraska
General Emergency Succession Act to
fill the requirements of the National
Civil Defense Program. Clarence L.
E. Swanson, state treasurer, made the
appointment.

York
Two York County bankers, J. A,
Boyle, vice president of the York
State Bank and R. F. Lord cashier of
the Blue River Bank of McCool Junc­
tion, were honored recently by the
York County Feeders and Breeders
Association at the annual banquet.
First Trust

Robert Jones was elected executive
vice president and manager of the
First Trust Company of York, ac­
cording to E. A. Levitt, president, fol­
lowing the annual meeting of direc­
tors. Mr. Jones previously was treas­
urer.
He takes over a number of duties
that were formerly the responsibil­
ity of LeRoy Davis, secretary since
1940. The latter will continue to
serve on the board of directors.

OAlkifif'C
b

A I H K J

BOUGHT

and

SOLD

All Negotiations Confidential
A N ATIO N AL CLEARIN G HOUSE
FOR EXPERIENCED BANK EXECUTIVES
W ITH C A P ITA L TO INVEST

Ba n k e r s
Box 1 4 3 5

S e r v ic e

Oes M oin e s 5 , Io w a

Co m pan y
P ho ne A T 3 -7 8 0 0

Iow a

Our
Itauk's
“ Family

News

103

HAWKEYED!

I t O O III**
By ETHELYN M.
HARRINGTON
Cashier
First State Bank
Diagonal, Iowa
D oc’s S nack B ar is an important
part o f the Redwood Room,
converted from wasted space.
From left are M. I. Roberts,
First State president;
E. M. Watson, vice pres.;
Darlene Lininger, a.c.;
Stanley Cregeen, a.c., and
the author.
BOTTOM : One corner o f the
pleasantly decorated room.

N K officers s o m e t i m e s are
B Athought
of as “stuffed shirts,”

brated on directors’ meeting dates,
thus eliminating an extra trip for the
“ old fuss budgets” and occasionally in directors and their wives from the
terms even less complimentary.
bank office at Shannon City.
This, however, is not the case at the
Nor does the room serve as only a
First State Bank, Diagonal, Iowa, party or social center. It has been
where unused basement space has used for directors’ meetings, for coun­
been remodeled and decorated in at­ sel in connection with bank examina­
tractive redwood paneling to become tions, for visiting school business
the Redwood Room where everyone classes which tour the bank, for com­
can “let his hair down” and the entire mittee meetings and small community
staff is transformed into “one big organizations’ meetings and for visit­
happy family.”
ing correspondent bankers who enjoy
The Redwood Room is particularly a cup of coffee while visiting with
busy on Saturdays. That is the day First State Bank officers.
the bank personnel have dinner to­
Another unwritten law which pre­
gether. This event is now looked for­ vails at the Redwood Room is that
ward to as the time for President M. when an employee goes on vacation,
I. Roberts and his wife to act as hosts a gift must be brought back to be
to the bank family.
placed in the room. Trips to the
Meals for this enjoyable event are Ozarks and Arizona resulted in pottery
planned and prepared by the lady em­ bowls and a California traveler
ployees and consideration is always brought back toothpick holders and
given to the little “whims” of employ­ ashtrays made from the California
ees. For instance, Vice President E. Redwoods.
M. Watson doesn’t care for the green
An adjoining modern kitchenette
tea that I prefer, so beside his cup of features an apartment size stove, a
hot water is an orange-pekoe tea bag.
refrigerator and a sink. A bar-type
One rule that always prevails is, “ If counter, called “Doc’s Snack Bar,” is
you don’t like what’s cooking, then do another unique feature of the room.
it yourself.”
This bar was given its name by the
Dishwashing is a cooperative affair, employees in honor of Mr. Watson.
done by anyone who would rather
The Redwood Room is a source of
wash dishes than help find the long or pride and enjoyment for the entire
short of the bank’s daily balance.
bank staff and their families and it
Saturday dinners are not the only has contributed a great deal toward
occasion for using the Redwood Room. the feeling of closeness among the
Birthdays of bank personnel are cele- employees.

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Federal Reserve Bank of St. Louis

MAX ROY, La Salle Assistant Vice
President, has a hawk’s eye when it
comes to Iowa and Iowa farming. He
also is hawkeyed about finding ways
and means to help La Salle’s Iowa
correspondents. H e’ll act fast and
right on the spot to serve you. Why
not get the facts from Max. He lives
right nearby in Iowa C ity, but he
makes his headquarters at La Salle
National Bank, 135 So. La Salle Street,
Chicago 90, Illinois. STate 2-5200.
M em b er F D I C . C om p lete T ru st
Services.

Northwest ern Banker, March, J961

104

Iow a

News

A m o n g d i g 's Top 1 0 B u ild in g s

SEVENTH BEST designed building in Des Moines is the Iowa-Des Moines National
Bank’s new drive-in facility, according to Professor Leonard Wolf, head of the depart­
ment of architecture at Iowa State University, Ames, who was asked by the Des Moines
newspaper to tour the city and select what he felt were the city’s 10 best buildings.
Professor W olf said the facility shows “ intelligent use of a new structural form—the
umbrella— and despite its appearance of being temporary, I think it will last a long time.
The motor bank has a simple message: ‘We bankers are willing to serve our public but
don’t be misled by the sleekness; your money is safe here’.”

G

ELECTROniC

IX D E X OF
A H V E R T IS E llS

Greenspan, Bud ................................................ 100

II
H anover Bank, T h e ......................................... 41
H arris Trust and Savings Bank ........... 39
Heinrich Envelope C o m p n a y ..................... 107
Hummer, W ayn e, and C o m p a n y .............. 52
I

FinGER mRn i
H A R R Y M ER TZ , La Salle Vice Presi­

dent and Auditor, has a talent for put­
ting his finger right on the spot where
banking systems can be modernized
to make them more efficient. Harry
Mertz is another reason why La Salle
(assets $175,000,000) is so well quali­
fied to handle correspondent banking
services. Want to see Harry? Just call
STate 2-5200, La S a lle N atio nal B ank,
135 S. LaSalle St., Chicago 90, 111. Com­
plete Trust Services. Member FDIC.

M A R CH , 1961
A

Acorn P rinting Company ............................ 107
A lliso n -W illia m s C o m p a n y ......................... 64
Am erican N ational Bank— St. J o sep h .. 89
Am erican N ational Insurance Company
of Galveston ................................................. 50
Am erican Trust and Savings Bank—
Dubuque .......................................................... 94
B

Bank of A m e r i c a ............................................. 22
Bank of C alifornia ......................................... 40
Bank of M ontreal ..............' . .......................... 38
Bankers Service Company ................... 88,102
Bankers Trust Company— Des M oines. 90
Becker & Cownie, Inc..................................... 98
Beh, Carleton D., C o m p a n y ......................... 61
Burroughs Corporation ................................ 35
C

Cadillac A ssociates, I n c ................................ 96
Central Bank and Trust Company—
D e n v e r ............................................................... 71
Central National Bank and Trust Com­
pany— Des Moines ...................................... 20
Central States H ealth and Life Com ­
pany .................................................................... I l l
Chase M anhattan Bank, The ................... 17
Chiles-Schutz Company ............................. 82
Christmas Club a Corporation ................ 15
City National Bank and Trust Com­
pany— K ansas City .................................. 60
Continental Illinois National Bank and
Trust Company ........................................... 19
Cub Products Corporation ..........................109
D

Davenport, P. E., and C o m p a n y .......... 89,98
DeLuxe Check Printers, Inc........................ 10
Diebold, Inc ...................................................... 13
Doane A gricu ltu ral Services, Inc...............36
D ouglas-G uardian W arehouse Corpora­
tion ................................................................... 16
Drovers National Bank .............................. 102
,E

E m ployers M utual Casualty Com pany. 49
F

Farm Business Council, Inc......................... 109
F arm ers M utual H ail Insurance Com ­
pany of Iow a ............................................... 48
F irst Continental National Bank and
Trust Company— Lincoln ...................... 87
F irst National B ank— Denver .................. 42
F irst National Bank— Omaha .................. 83
F irst National Bank— St. Louis .......... 54-55
F irst National Bank and Trust Com ­
pany— T ulsa ................................................. 72
F irst National City Bank of New Y ork 8-9
F irst Trust Company of Lincoln ........... 61

Nort
ern Banker, March, 1961
Digitized
for hwest
FRASER
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Federal Reserve Bank of St. Louis

Iow a-D es Moines National Bank ............ 112
Iowa Pow er and L igh t C o m p a n y ........... 14

K

K alm an and Company, Inc ..........................107
K ingston H otel & Y acht Club ................ 50
Koch Brothers ...................................................108

L

LaM onte, George and Son .........................
7
LaSalle N ational B a n k ................ 103-104-105
Live Stock National Bank— Chicago . . . 33
Live Stock N ational B ank— Sioux City 68

M

M anufacturers Trust C o m p a n y ................ 37
M arquette N ational Bank .......................... 105
M erchants M utual Bonding C o m p a n y .. 108
Merchants N ational Bank .........................
2
Midland National Bank ................................ 62
M innesota Commercial M en’s A sso cia ­
tion .......................................................................101
M orrissey and Company ............................. 96
M utual Fire and A utom obile Insurance
Company .............................................................46
N
National Bank of Commerce .................... 86
National Cash R egister C o m p a n y ........ 11
National Reserve L ife Insurance Com ­
pany . . ............................................................... 44
Neu and Company ........................................... 58
Newhouse Paper Company ......................... 46
Northern Trust Company .........................
3

o
Omaha National Bank ..................................

85

Quail and Company ......................................

61

R
Ralston Purina Company ........................... 99
Recordak Corporation .............................. 56-57
S

St. Paul Term inal W arehouse Company 51
Security N ational B ank— Sioux City . . 95
Shaw, M cDerm ott and Company ........... 58
Studley, Shupert Trust Investm ent
Council ............................................................... 43
Sutro Bros. & Co........................................... 52
T

T alcott, James, Inc....................................... 18
Telescopic ..............................................................109
U

United C alifornia Bank ................................
4
United States Check Book ......................... 34
United States National Bank— O m a h a .. 80
V

V a lley Bank and Trust C o m p a n y ........ 93
V alley National Bank— Phoenix ...........
6

w

W estern M utual Insurance Company . . 47
W h ite -P h illip s Company, Inc.................. 54

105

Io w a N e w s

C h icago Y a rd s B u ild s N ew P en s

fjáiüiñil

:

THIS NEW, MODERN liog house at the Chicago Stock Yards was scheduled to be opened
for business early in March. Shown here inspecting the steel and concrete structure are
(left to right) Ralph S. Epstein, vice president of A. Epstein & Sons, Inc., architects who
designed the building; Roy Roberts, vice president of John F. Chappie Company, the steel
work contractors, and Charles S. Potter, president of the stockyards.
Mr. Epstein is demonstrating the triple-duty feature of a pen which allows for simul­
taneous penning of quarter lots, half lots, or full loads of hogs. More than one million
pounds of steel was used in the pen fencing and superstructure.
Modern layout of pens and alleys, and their proximity to scales, provides ideal condi­
tions for buyers and sellers in expediting movement of hogs through the sales area before
and after sale. Concrete floors throughout are pitched for proper and frequent draining
and cleaning. Unloading features include hydraulic lifts to meet various heights of
truck beds at the docks.

Webster City
Three promotions have been an­
nounced by George Alexander, Sr.,
president of the Farmers National
Bank. They are:
William F. Vance, advanced from
assistant cashier to cashier; George B.
Aden, cashier, and George E. Alexan­
der, Jr., assistant cashier, advanced to
vice president. The latter two men
also have the title of trust officer.

Wolcott
Eugene Bernick was elected as a
new director of the Walcott Trust &
Savings Bank, according to K. H.
Dietz, cashier.

Wintersel
Ernest C. Hinners is the new man-

ager of the Orient branch of the Farm­
ers and Merchants State Bank, Win­
terest. He succeeds G. Willard Mease,
who has been transferred to the bank’s
loan department.

Heads Jasper County Group
About 65 bankers attended the re­
cent meeting of the Jasper County
Bankers Association, and the follow­
ing new officers were elected, accord­
ing to Don Heineking, assistant cash­
ier of the State Savings Bank, Baxter:
President, E. L. Seile, cashier, First
State Bank, Lynnville; First Vice Pres­
ident, W. C. Illstrup, president, New­
ton National Bank; Second Vice Presi­
dent, Collin W. Fritz, vice president,
Jasper County Savings Bank, Newton,
and Secretary-Treasurer, Mr. Heine­
king of Baxter.

"Strong friend o f the
Independent Banker!'

Fiderai
3-5411

, ,

BOB WILLIAMS,

La Salle Vice
President in charge
of advertising,
knows how to blow
the advertising horn
of plenty. Experience
with many successful
promotions proves
he’s hitting the right
notes. Need to boost
business? Why not call
on Bob? He’s at
STate 2-5200. That’s
L a S a lle N a t io n a l

MARQUETTE
OF M IN N E A PO LIS
a t /M a d X fu fjtfls
MEMBER


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Federal Reserve Bank of St. Louis

FEDERAL

DEPOSIT

INSURANCE

135 S. La Salle
St., Chicago 90, 111.
Member FDIC.
Complete Trust
Services.

Bank,

CORPORATION

Northwestern Banker, March, 1961

106
Mrs. Gregory Brunk, 63, a director
of the First Federal State Bank, died
February 27. She suffered a heart
attack.
Mrs. Brunk was active in Polk
County and Iowa Republican party
work. For several years she was a
member of the board of curators of the
Iowa Historical Society. Her husband
is a partner in the law firm of Brunk,
Janss and Dreher.
Mrs. Brunk was a niece of W. J.
Goodwin, chairman emeritus of the
board of the Central National Bank
and Trust Company.
*

HE VALLEY BANK AND TRUST
11. COMPANY
of Des Moines recently
held a meeting of all its directors, offi­
cers, and employees, at which Henry
G. Peterson, trust officer, announced
that the bank had again established a
new record in the share of its annual
profits contributed to the employees
profit sharing trust. The amount con­
tributed for 1960 was $53,400.

Field Investment Company. He also
is president of a newly formed cor­
poration, Builders Investment, Inc.
Mr. Butts has been with the bank
since it was opened in 1959. He is a
native of Charles City and formerly
was associated with the First Security
Bank and Trust Company there.
Other directors and all officers were
re-elected.
*

A $53,400 CHECK, representing the em­
ployees’ share of Valley Bank’s 1960
profits, is presented by Edward Burchette,
chm. of the bd., to Adeline Klatt, Valley

Bank hostess, who accepts it for the em­
ployees’ profit sharing trust.

Mr. Peterson also announced that
the trust fund had reached a total of
$467,000. This amount is shared by
66 employees who participate in the
bank’s profit sharing plan and is in
addition to substantial amounts al­
ready paid to former members of the
plan who have retired or otherwise
terminated their employment.
At the same meeting the operation
of the bank’s profit sharing plan was
explained to new employees who will
share in its future benefits.
*

*

*

J. Stuart Kirk, James M. Hoak and
Doyle A. Butts, cashier, were elected
to the board of directors of the Plaza
State Bank at the annual meeting.
Mr. Kirk is secretary-treasurer of
Younker Bros. Mr. Hoak is president
of Wheeler Lumber Bridge and Sup­
ply Company and of the WheelerNort hwest ern Banker, March, 1961


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

*

*

*

*

Albert J. Robertson, at one time as­

sociated with the Iowa-Des Moines
National Bank, recently resigned as
chairman and member of the Fed­
eral Home Loan Bank Board. He
was appointed by President Eisen­
hower on September 15, 1956 to com­
plete Walter W. McAllister’s unex­
pired term ending June 30, 1957, and
was reappointed for four years ending
June 30, 1961.
Mr. Robertson was senior vice pres­
ident at the Iowa-Des Moines National
prior to his Washington appoint­
ment.

*

*

*

*

W. H. Brenton, chairman, National

Bank of Des Moines, attended the
Fifth Annual ABA Savings Confer­
ence in New York City, March 6-8.
*

*

Alton E. McGlothlen, assistant vice
president of the Valley Bank and
Trust Company, won the American
Institute of Banking public speaking
contest held last month. The subject
of competing speakers was “Economic
Growth Without Inflation, Its Nature
and Significance.”
Mr. McGlothlen will represent the
Des Moines Chapter at the Regional
Public Speaking Contest to be held
in Des Moines, April 15 at the
Y.M.C.A., in competition with speak­
ers from Denver, Minneapolis, St.
Paul, Kansas City, St. Louis, Omaha,
Sioux City and Wichita chapters. The
winner of this contest will speak at
the National Public Speaking Contest
for the A. P. Giannini Educational
Endowment prize at the National
A.LB. convention in Seattle, Wash.,
May 29.
Clarence Dickson, assistant cashier,
and Arnold Dressier, both of Central
National Bank, were winners of sec­
ond and third places.

*

The Northwest Des Moines Na­
tional Bank has moved its Urbandale
office to its new building at 7101
Douglas, according to David G. Wright,
vice president and cashier. Leo E.
Calson, Jr., is manager of the Urbandale branch.

*

*

Marvin Vermie, vice president in

charge of the installment loan depart­
ment at the Capital City State Bank,
will be attending the ABA Installment
Credit Conference in Chicago March
20-22, at the Conrad Hilton Hotel.
*

=t= *

Rolfe O. Wagner, chairman of the

board, Capital City State Bank, and
Mrs. Wagner are vacationing for sev­
eral weeks in Miami, Fla.

*

*

*

J. Locke Macomber, vice president

and trust officer, Valley Bank & Trust
Company, attended the ABA Mid-Win­
ter Trust Conference in New York
last month. J. R. Astley, vice presi­
dent, attended the Mortgage Bankers
Midwest Winter Conference in Chi­
cago last month.

Promote Former Iowan
L. N. Shonkwiler, formerly execu­
tive vice president of Skokie Trust &
Savings Bank, Skokie, 111., was elected
president at the annual meeting. Mr.
Shonkwiler was formerly cashier of
the Emmet County State Bank, Estherville, Iowa. The bank has assets
in excess of $10 million after less than
four years of operation.

Spencer
Jack W. Edge, president of the
Farmers Trust and Savings Bank, re­
ports the election of an additional
member to the board of directors, G.
K. Edge.
The surplus account of the bank has
been increased $100,000 so it now to­
tals $500,000. Capital assets equal
$1,145,000.

î®wa News

To

A ssist

M. SCHMIDT, volunteer
MARVIN
State chairman of the U. S. sav­
ings bonds division for Iowa, an­
nounced recently the formation of a
new volunteer state advisory commit­
tee. The new committee consists of:
Neal A. Sands, president, Valley
................. v:^ Bank and Trust
C o m p a n y , Des
M o i n e s , state
b a n k i ng c h a i r ­
man.
Richard E. Al­
br ec ht , editor,

Wallaces Farmer,
Des Moines, state
agricultural chair­
man.
Robert W. Ti­
N. A. SANDS
tus, vice president
and treasurer, Titus Manufacturing
Company, Waterloo, state payroll sav­
ings chairman.
Ray Mills, president, Iowa Federa­
tion of Labor, AFL-CIO, Des Moines,
state labor chairman.
D. R. Lillard, superintendent of
schools, Winterset, state schools chair­
man.
Russell D. Buss, district agent,
Northwestern Mutual Life Insurance
Company, Centerville, county volun­
teer representative on state advisory
committee.
Fred D. Carl, owner, Fred D. Carl
Advertising and Promotion Agency,
Des Moines, chairman, state executive
promotional committee.
Wesley Day, Wesley Day & Compa­
ny, advertising and public relations
agency, Des Moines, member, state
executive promotional committee.
Russell J. Truppe, partner, Truppe,
La Grave Reynold and Advertising
Agency, Des Moines, member, state
executive promotional committee.
Connor T. Flynn, corporation secre­
tary, Lessing Advertising Agency, Des
Moines, member, state executive pro­
motional committee.
Frank Warner, secretary, Iowa
Bankers As s oc iat i on , Des Moines,
member, state advisory committee.

Waver ly
Officer changes announced by L. G.
Hix, vice president of the First Na­
tional Bank, are as follows: Pauline
Koch elected assistant cashier; Jim

ACORN

Registers
"Accepted Sale Registers by Bank
Clerks Everywhere"
For intoimation write
THE A C O R N PRINTING C O .
O a k la n d , Iow a


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

107

Stiriliffs Itom i s Sales
Arens advanced from assistant cashier
to cashier, and Margaret Kehe ad­
vanced from cashier to assistant vice
president. Lee Bossom, a former bank
employee who has been a state bank
examiner for the past year, has re­
turned to the bank as an assistant
cashier.
Capital was recently increased from
$200,000 to $250,000 and surplus is
$250,000.
Work is progressing on the drive-in
window installation in the parking lot
owned by the bank. There will be
drive-in windows on the north and
south sides of the building. Parking
facilities will accommodate about 13
cars. The installation is expected to
be in operation about mid-April. It is
planned to remodel the interior of the
bank at that time.

Wever
Clifford G. Matteson, formerly an as­
sistant cashier, has been promoted to
cashier of the Farmers Savings Bank,
replacing Ott K. Gregg.
William W. Burk replaces Mr. Gregg
on the board of directors.

(j4 h

Complete
Investment Banking

SERVICE
Over half a century of expe­
rience, integrity and tradition.
Extensive, modern facilities.
One of the largest and most
active investment firms in the
Midwest.

ENVELO PE
j/tOM

H E IN R IC H
It ’s

that e*tra measure

of excellence . . . to con ­
vey a quality impression

for your business firm,

■ Portfolio Planning

church or other organiza­

■ Purchase and Sale of Listed and

tion . . . the result o f

Unlisted Securities
■ Underwriting of Corporate and
Municipal Securities

th ree gen era tion s s p e ­
cializing in the produc­
tio n o f e n v e lo p e s and

■ Private Placement of Long-term
Financing

helpful service.

■ Estate Appraisals

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& Com pany
Established 1910

McKnight Bldg., Minneapolis
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.

108 W ashington A ve. No.
■
M inneapolis 1, M innesota
Northwestern Banker, March, 1961

108

The Bankers’ Market Place

W A N T ADS
Rates 20 cents per word per
insertion. Minimum: 10 words.
NORTHWESTERN BANKER
306 15th St. Des Moines, Iowa

A Page Telling What’s New for Banks and Bankers

Each month the Bankers’ Market Place will bring you listings of new
;products, specialty items, banking equipment, and gift items which will

help you and your staff do a better job. This is the selection for this month.
N U N U S U A L stick-on “match
A
book” folder containing Ko-RecType typing corrections sheets instead
of matches is being marketed. The
packet is available with bank’s adver­
tising message printed on its cover.
Selling for three to five cents, de­
pending on quantity, each booklet fea­
tures a unique stick-on tab for at­
taching directly to typewriters or
desks.
Booklets are especially designed for
advertising, or use as premiums by
banks. Each booklet is good for up
to 100 eraserless corrections, accord­
ing to the manufacturer, Cub Products
Corporation of Long Island City, New
York.
To make corrections, a sheet of KoRec-Type is placed over the error, the
mistake is over-typed and is com­
pletely covered by a special white
coating, correct copy is then typed
directly over the previous error.
Free samples are available from the
manufacturer, 11-49 44th Road, Long
Island City 1, New York.

MERCHANTS
MUT UAL

BONDING
COMPANY

NEW account number verifier de­
A
signed to detect clerical errors
made in entering account numbers A
into a business machine has been
developed by National Cash Register
Company. The verifier is used in con­
junction with NCR adding and ac­
counting machines which generat e
punched paper tape or punched cards
for data processing systems.
The verifier applies a single mathe­
matical test at electronic speed to

Home Office
2100 GRAND AVENUE

PRINTING • BOOK BINDING . BOOKS

Des Moines, Iowa

DIRECT MAIL ADVERTISING . INDEX
CARDS

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.

E. H. WARNER
President and Manager

W. W. WARNER
Vice President

M. J. CORBIN

Northwest
ern Banker, March, 1961

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

every account number entered. The
test is designed to catch all the most
common clerical errors. When an en­
try fails the test, the verifier prevents
operation of the parent machine until
the error is corrected.
Normally, existing account-number­
ing systems can be changed over to a
verifiable system simply by adding
another digit to the old account num­
bers.
For further information, write Prod­
uct Information, The National Cash
Register Company, Dayton 9, Ohio.

CHECKS • OFFICE FORMS

NEW public relations tool for
banks was announced recently
by Harris-Tuchman Products, Inc. It
is a 10-minute color/sound film dealing
with the safeguards to be taken in
check cashing by service and retail
firms.
The film, entitled “Check and Dou­
ble Check,” utilizes cartoons to cover
the basic safeguards to be exercised
in cashing checks.
The film is prepared for projection
on any standard filmstrip projector
and sells for $100 per print. Banks
wishing to have the presentation
customized, may do so on an indi­
vidual quotation basis. Complete de­
tails are available from Harris-Tuch­
man Productions, Inc., 751 North
Highland Avenue, Hollywood 38, Calif.

first fully automatic on-line
T HE
data processing system for savings
institutions has been designed and
built by The Teleregister Corporation
of Stamford, Conn.
Called the Telefile system, it was
first demonstrated over a long dis­
tance circuit from Newark to Boston
at the 13th annual conference on oper­
ations, audit and control of the Na­
tional Association of Mutual Savings
Banks at the Hotel Statler in Boston.
In a demonstration, a passbook was

109
which will match computer output
speeds. A complete page of data, con­
taining as many as 8,064 characters, can
be reproduced “with graphic arts
quality” in about one-half second, in
a single 16mm microfilm frame.
At the first public showing of the
system, J. M. Arnold, Recordak presi­
dent, commented, “With these new
techniques of our DACOM system, we
can now offer film, automatically
coded, for rapid retrieval and refer­
ences in business systems. This will
simplify the handling of computer
output by replacing voluminous paper
with convenient film records.”

inserted into a “Teller-Register” at the
Statler and the appropriate buttons
were depressed. Seconds later, the re­
quested transaction was completed,
recorded in the passbook, and the ac­
count brought up to date with in­
formation stored in Newark.
Developers state that small banks in
no way related to each other can use
a joint telefile center and benefit from
all its services at a nominal cost to
each bank. The systems can service
more than a million accounts or just
a few.
N INFORMATIVE b o o k l e t of­
A
fered by Cummins-Chicago Corp.,
manufacturer of equipment for auto­
matic processing of original docu­
ments, tells how an installment pay­
ment operation can have the benefits
of fully automated document han­
dling on an inexpensive piecework
basis.
The booklet explains how the ODP
service is made available to all users
of the Cummins Coupon Payment
System and how even the smallest
firms can enjoy the economies ob­
tained from comprehensive data proc­
essing. Cost is based only on the
number of items processed.
The booklet outlines the economical
procedures made possible by central­
ized handling, posting and accounting
provided Cummins customers by proc­
essing centers now in operation or
being established.
For a free copy of the ODP booklet
write Cummins-Chicago Corporation,
4740 North Ravenswood Avenue, Chi­
cago 40, 111.
ECORDAK CORPORATION will
soon market highspeed computer
R
print-out equipment known as the
Recordak DACOM System. The new

THE FARM PICTURE — o u ts ta n d in g ch o ic e
of o u ts ta n d in g b a n k e r s — Is a modern news­
letter devoted to the highest traditions of
full service banking. Farmers prefer the pic­
ture over similar services— by a ratio of
more than 2 to I. The Picture sells bank
services by helping farmers understand how
to use their bank more efficiently. If farm­
ers are important to your bank, please let
us send complete information. Earl F.
Crouse, president, Farm Business Council,
Inc., Dept. 41, P. O. Box 221, Urbana, III.


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

NEW, portable counter-sorter is
being marketed by Standard
Change-Makers, Inc., Indianapolis, Ind.
The retail cost of $199 makes this one
of the lowest priced, electrically-oper­
ated counter-sorters on the market.
Chief features are unique design (it
both counts and sorts); portability (it
weighs only 27 pounds), and low
price. Overall size is 18 inches wide,
13 inches high and 9 inches deep. It
handles everything from pennies to
half dollars.

A

Automation booklet by Cummins

system derives its name from Datascope Computer Output Microfilmer,
and will convert information from
magnetic tape into plain language on
microfilm at speeds up to 20,000 char­
acters per second.
The DACOM System complements
modern computer equipment, provid­
ing for the first time print-out speeds

NEW check conditioning machine
A
for rejuvenating mutliated mag­
netic ink and punch card checks has
been announced by Hannifin Com­
pany, Des Plaines, 111., a division of
Parker-Hannifin Corporation.
The machine will rejuvenate even
the most crumpled check for elec­
tronic processing. Because of its
228,000 check per day capacity, all
checks can be given the restoration
treatment at a pace comparable to
the speed of automatic processing
equipment.

Recordak’s high-speed DACOM

clever craftsmanship of this novel pen. The
writing emits a pleasing fragrance of rose
or lavender which stays with the paper. The
nicest thing for an unusual Present, Good­
will or Advertising Medium. 5" when in
use; 2" when closed. Small as a Lipstick.
Ring for key chain and attractive plastic
case included. Colors: Rose-pink, Lightgreen, Dark-blue and Ivory. Performance
and satisfaction guaranteed or your money
cheerfully refunded. Only $1.00 postpaid.
Wholesale Prices
upon request.
"TELESCO PIC", Dept. NWB, P.O. Box 936
Wichita, Kansas

New ad vertising tw ist fo r banks — match­
less advertising "matchbooks" containing KOREC-TYPE typing correction sheets; used and
appreciated, read and remembered by any
one who types. With your ad printed on the
covers, booklets of 100 eraserless corrections
make excellent advertising give-aways. Selfsticking tab allows typist to attach booklet to
typewriter or desk. To make corrections,
Ko-Rec-Type is placed over the error, mis­
take is typed over and completely covered
with white coating. Correction is typed over
previous error. FREE samples and price in­
formation from CUB PRODUCTS CORP.,
11-49 44th Road, Long Island City I, N. Y.
Northwestern Banker, March, 1961

110

M oth er Has A n sw ers!

W h ere T here’s a W ill . . .

Tough Situation

Mother: Yes, dear, angels can fly.
Why?
Daughter: I heard Daddy call the
new maid an angel and I just won­
dered. When is she going to fly?
Mother: Tomorrow!

Boss: Brother, that’s a beautiful dia­
mond ring. Must be at least two car­
ats. Anybody 1 know?
Secretary: No. When Grandma died,
she left $2,000 for a stone in her mem­
ory. This is it!

Two transport drivers were taking
a cargo into Canada for the first time.
Late in the evening they stopped at a
large town, parked their truck and en­
tered a roadside diner. A very cute
little waitress approached.
“What town is this?” asked one of
the drivers.
“Saskatoon, Saskatchewan,” sang
out the waitress.
The driver turned to his companion
and whispered:
“Now we’re in a real mess. They
don’t even speak English here!”

Real Snow Job

Room Clerk (loaded down with skis,
sled and 12-man toboggan): But Sir,
this is Florida. There’s no snow here.
Texas Oil Man: There will be tomor­
row, Son. I’m having two trainloads
shipped in.
An

Advantage

Mack: Did you know I knew your
wife before you married her?
Mike: No. You’re lucky. I didn’t.
K n ow a Better T im e?

Executive Vice President (to teller):
You must believe in reincarnation,
Miss, the way you come back to life
at quitting time.
Voice o f the M inority

“ I certainly hope none of the other
planets are inhabited.”
“Why’s that?”
“We can’t stretch foreign aid much
farther.”
The Solution

Lawyer: 1 hate these parties. Peo­
ple always get you aside and pump
you for free advice.
Doctor: Yes, I know. But I soon
put a stop to that.
Lawyer: How’d you do it?
Doctor: When they begin telling of
their symptoms, I merely say, “Will
you disrobe, please?”
That IS a Problem

Woman: Doctor, I wish you’d take
a look at my husband. He sits around
and blows smoke rings that aren’t
smoke rings at all. They’re dollar
signs.
Doctor: Well, it’s nothing to worry
about. He has just practiced and he
knows a few tricks . . . or perhaps he
has become very proficient, seeing it
as an art.
Woman: But he doesn’t smoke.
N orth w estern

Banker, M a rch ,


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

1961

H e ’s Truthful!

Customs Inspector (holding up a
bottle of Scotch): I thought you said
you had nothing in this bag but wear­
ing apparel.
Traveler: That’s right. That’s my
night cap!
N o Problem

Bud: Did you have any trouble
choosing a name for your new baby?
Doyle: Nope. I have a rich uncle.
Matchless Pun

A father sent his two sons into the
hills on a cold night to herd sheep.
Later he went out to see how they
were getting along. He found one son
dutifully watching the sheep and
asked, “How are you?”
“Fine, father,” replied the son, “but
my lamp has gone out and I am cold.”
Whereupon the father gave the boy a
new wick for his lamp. The father
then came upon the second son who
was fast asleep under a tree. He
woke him and asked, “How are you?”
The boy replied, “ I’m cold, father,
and need a new wick for my lamp.”
The father shook his head and said,
“You shall not have it. There is no
wick for the rested.”
N ot So Smart

The teacher asked the class to name
all the states. One small boy respond­
ed so quickly and accurately that she
commended him for it.
“You did very well,” she said, “much
better than I could have done at your
age.”
“ Really!” he replied. “ And there
were only 13 states then.”

Miss Understood

“ It’s C.O.D.,” the butcher’s delivery
boy announced as he handed a pack­
age of fish to the maid. She stared at
him coldly.
“Well, you needn’t spell it for me,”
she replied briskly, “and, besides, we
ordered haddock.”
N ow Y ou 're Talking"

Two permanently unemployed men
were stretched out on the side of a
railway embankment. They basked in
the warm sun. A lazy stream bub­
bled close by.
“ Man,” sighed one of them, “right
now I wouldn’t change places with
a man with a million dollars.”
“How about five million?” demanded
his companion.
“Not even for five million,” he stated
with conviction, breathing in the clo­
ver-scented air.
“Well, how about ten million?”
The first one sat up.
“That’s different,” he shouted.“ Now
you’re talking real money!”
/ O w e Silver

Customer: I want to see about a
loan.
Bank Hostess: I’m sorry, the loan
arranger is out.
Customer: Well, may I speak with
Tonto?

Middleage

Smart B o y !

In spite of a few gray hairs, I’ll never
Admit I am losing my touch;
I’m having just as much fun as ever—
1 just don’t enjoy it as much!

She: I went to the doctor today and
told him about my lapses of memory.
He: What did he do?
She: He made me pay in advance.

“ A P R O F I T F O R Y O U R S E R V I C E ” is a
com plete, concise (only 12 m inute) color film
presentation of Central S ta te s’ popular B A N K
H E A L T H program. . .
A new bank service which builds good will
A N D returns profitable extra revenue.
When made available by banks, this convenient
insurance coverage is taken by as many as three
out of every four eligible custom ers. Frequently
new customers are gained (one bank recently
opened 19 new checking accounts when this service
was added).
P la n now to sp en d 12 m inutes watching “ A
P R O F IT FOR Y O U R S E R V IC E ” — in your own
office with your key personnel, if you wish. A card
or phone call will bring a Central States repre­
sentative to your bank.
It can be your most profitable tim e in vestm en t
in ’61!

Cen tra l Sta tes
H

ealth

of

& L if e C o .

Om aha

T . L e s l i e K iz e r , P re sid e n t


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

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JERRY NELSON

CHRISTY F. ARMSTRONG

KEITH W. CAMPBELL

GEORGE E. HARNAGEL

BOB BUENNEKE

Vice President

Vice President

Assistant Vice President

Assistant Cashier

Assistant Cashier

Just a hop, skip and jump to our
Mid-America location!
Stick a pin in your U.S. map at Des Moines, and you’ll
find you can almost spin the map like a top. Yes—we
are located, happily, at the very heart of Mid-America.
Which can mean, for you, correspondent bank services
always a little faster.
Actually, the Iowa-Des Moines National Bank is less
than a day away from any major city, coast to coast. So
no matter where your drafts are drawn, they can get to

Io

w a

-D e

s

M

o in e s

Sixth and Walnut, Des Moines, Iowa • CHerry 3-1191

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

us in a hurry. And we keep our correspondent services
operating at top speed, to move your business with all
possible dispatch.
Why not stop in here, next time you’re traveling—on
vacation, or on business—and let us show you around
the Bank. Y ou’ll see some operations we think you will
admire; and most likely you will get some ideas as to
how we can serve you even better!

© 7 W ¿¿ y o /t <»¿
Member Federal Deposit Insurance Corporation