Full text of The Northwestern Banker : May 1954, 60th Year, No. 802

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Midwest Banker:
For Stable Farm
Income in 1954
Survey— Pages 16-19

BANKERS SALUTE THE AUTO INDUSTRY

North Dakota
Convention — Page


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Federal Reserve Bank of St. Louis

6!

Hollywood movie actor Ronald Reagan, center, visits with A lan R.
Kidd, left, vice president in the banking department of The Northern
Trust Com pany, and Edward Byron Smith, executive vice president of
the Chicago bank.— See page 4.

M ay Group Meetings
During this period of constant and rapid change, you’ll find
your May group meeting more important and helpful than
ever before.

You will benefit from the carefully selected

program of fine speakers and from the exchange of ideas with
fellow Iowa hankers. The Merchants National Bank will be
represented at each of the Iowa meetings.

We are looking

forward to this annual opportunity for fellowship with the
members of the state’s hanking fraternity.

M erch an ts National

YOU ARE INVITED
lo hear The Merchants National Hour over
WMT, 9 to 10 each Sunday evening . . . an
outstanding production used to promote banking
in Iowa.
No. 802. N orthw estern Banker, published m onthly by the N orthw estern Banker Com pany, at 527 Seventh Street, Des Moines, Iowa. Subscription,
35c per copy, $3.00 per year. Entered as Second Class M atter January 1, 1895, at the Post Office at Des Moines, Iowa, under A ct o f M arch 3, 1879.


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3

ROOSTER CROW...
r

OR AN INCENTIVE?

THEODORE S. SA N BO R N
President
North Central Life
Insurance Company

In 1952, North Central won recognition for showing the highest per­
centage of sales gain among all life insurance companies in America,
making it the fastest growing company in the United States. This fast
pace was repeated in 1953 when we more than doubled our 1952 results.

L. V. A SBU RY
President
L. V. Asbury Co

mm

Other industry recognition demonstrates that in addition to being the
fastest growing life insurance company in America, North Central is also
one of the strongest financially. The Standard Analytical Insurance Reports
show North Central’s ratio of assets over liabilities and surplus to reserves
to be well beyond normal requirements. The twenty largest life companies
in America show an average of $106.91 in assets for every $100 of liabili­
ties. North Central has $149.16 for every $100. The twenty largest life
companies show $8.18 average surplus per $100 of reserves. North Central
shows $60.87 surplus per $100 of reserves.

R ICH ARD H. BANCROFT
Corporate Secretary
St. Paul Companies

EDW ARD P. BURCH, M. D
Eye Surgeon

HOWARD E. C A M M A C K
Secretary
Crescent Creamery Co.

WM. F. D A V IDSO N
President
Davidson Company

W ALTER V. D0RLE
President
Northwestern State Bank

TRU M A N P. GARDNER
President
1st National Bank
Hastings, Minnesota

E. W. OSTERGREN, M. D.
Physician and Surgeon

BRUCE W .SA N B O R N
Sanborn, Jackson & Biorn
Attorneys

Such industry recognition is a source of real satisfaction to us. Yet,
while we like to point with pride to indications of accomplishment, we
seriously regard our record as but another step in our program of Planned
Progress . . . a continued vigorous effort to build and maintain this
centrally located St. Paul company as a sound life insurance institution
of service in the north central states of Minnesota, North and South
Dakota, Wisconsin, Iowa, Nebraska, Montana, Wyoming and Colorado.
What might then have become a “ rooster crow” becomes instead the
incentive to spur all of us at North Central to continued, greater effort
and achievement. The results of our sales and service efforts reflect our
firm belief that our policies are of sound benefit to the people who buy
them.
W e intend to continue our program of “ Planned Progress.” Your accept­
ance of our service has strengthened our belief that we have something
to offer the people of the north central states.


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PRESIDEN T

L I F E

I N S U R A N C E

S A I N T

P

A

U

l

I .

M

C O M P
I

N

N

E

S

A N Y
C

T A

Northw estern Banker, May, 1954

4

1 9 5 4 lo w a - N e b r a s k a
Bank D ire c to ry P u b lish e d
The 1954 edition of the Iowa-Nebraska Bank Directory shows more than
$4 billions on deposit in the two states.
Deposits in Iowa’s 664 banks at the
end of 1953 were $2,635,189,456, with
$1,776,007,456 of this amount in the 559
state chartered banks. The 96 nation­
al banks in Iowa had $859,182,000 in
deposits.
In Nebraska total deposits in the
415 banks at year-end were $555,238,411. The 124 national banks carried
$1,107,748,000 on deposit at the end of
1953, and the 290 state banks had
$447,490,411 at year-end.
Combined loans and discounts in

the two states were $1,450,188,383.
Iowa banks had loans and discounts
at year-end of $957,024,863. The state
banks had $701,680,863 of this total,
while the national banks had a total
loan and discount volume of $255,344,000 at the end of 1953.
Nebraska banks listed $493,163,520
at the end of 1953 in loans and dis­
counts. National banks showed $330,771,000 outstanding in loans and dis­
counts, while state banks in Nebraska
had $162,392^520 in loans and dis­
counts.
The lowa-Nebraska Bank Directory
is published annually by the N orth­
w ester n B anker , 527 Seventh Street,
Des Moines 9, Iowa. Copies may be

DROVERS NATIONAL BANK*
PROVIDES A WORLD-WIDE SERVICE
for ITS CORRESPONDENTS

purchased for $3.00 each by writing X
the above address.

O N THE COVER
Screen star Ronald Reagan recently
joined The Northern Trust Company,
Chicago, in a unique salute to the
automobile industry at the height of
the 46th Annual Chicago Automobile
Show.
“The Northerners” radio program,
sponsored by The Northern Trust for
23 consecutive years, was broadcast
in revolutionary stereophonic sound
from the grand ballroom of the Palmer
House, where 1,000 auto industry
leaders gathered for the 50th anniver­
sary dinner meeting of the Chicago
Automobile T rade Association. In­
cluded in the impressive guest list
were Presidents Harlow H. Curtice of
General Motors; L. L. Colbert of Chrys­
ler Corporation, and John L. McCaffrey
of International Harvester, as well as
top officials of every major automobile
company.
Among the dinner guests were 15
Northern Trust officers, including Ed­
ward Byron Smith, executive vice
president, the only banker at the
speakers’ table.

^

j

y
We do far more than provide fa st service on
livestock items. We provide a world-wide collections-transit-credit information service for our
correspondent banks.
Drovers service is friendly and fast. W e invite
your inquiry about it.

*The Drovers National Bank is a direct member of the Chicago
Clearing House Association and the Federal Deserve System. It is
one of Chicago's oldest banks, established on February 12, 1883.

O n A d v e r t is in g P anel
Four First National Bank and Trust
Company of Tulsa executives recently
appeared on various panels at the
mid-western regional meeting of the
Financial Public Relations Associa­
tion in Oklahoma City.
Russell Hunt and N. M. Hulings,
First National vice presidents, both
spoke on the commercial development
panel.
L. H. Baker, First National vice
president, appeared on a staff rela­
tions panel, and Don Flynn, assistant
cashier and in charge of the bank’s
public relations and advertising pro­
gram, appeared on the advertising
panel.

*

S u rp lu s In c re a se

^Drovers Banks
Drovers National Bank and Drovers Trust A Savings Bank
UNION STOCK YARDS, CHICAGO 9, ILLINOIS
Members, Federal Deposit Insurance Corporation

■:

f|||l|pl . . ■■

¡I1M il I . ÉfiÉ . VJMÍÉÉM¡¡¡I

.' ' pljpgpi I ■P liillM ili I

COMBINED RESOURCES OVER ONE HUNDRED MILLION DOLLARS

Northwestern Banker, May, 1954


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Federal Reserve Bank of St. Louis

Commerce Trust Company’s second
2 million dollar addition to surplus
within a year was announced by
James M. Kemper, board chairman.
Directors of the Kansas City bank
have authorized the transfer of 2 mil­
lion from undivided profits to surplus,
boosting the latter to 16 million dol­
lars. Last June surplus was raised
2 million dollars.
As a result of the action, the bank,
which has been in operation since
1865 and for many years has ranked
among the first fifty in the nation in
deposits, has combined capital and
surplus of 25 million dollars. In addition, undivided profits are in excess
of 5 million dollars.

u

*

*

5

BANK TESTEÓ

BETTER THAN EVER!

THE
A merican Express T ravelers Cheque

SALES-PROMOTION PROGRAM
The 1954 American Express Sales-Promotion
Program is now available. This material has
been bank tested and proven successful. Of
special interest are the new window display,
which can be used alone or with other display
material, and the new television commercial film
done in the popular animated cartoon tech­
nique. In addition, there is a complete set of
new statement enclosures, all designed to attract
customers for American Express Travelers
Cheques and your other bank services, too.

O f course there is no charge for this material.
Feel free to order as much of it as you will use.
Now is the ideal time to put these sales aids
to work for your bank. The summer vacation
season is fast approaching and, for maximum
effectiveness, your initial mailing should be on
its way by June 1st. An American Express port­
folio has probably reached your desk by now. If
it hasn’t, please write to Olaf Ravndal, VicePresident, American Express Company, 65
Broadway, New York 6, N. Y.

Records show that . . .
A M E R IC A N E X P R E S S S A L E S - P R O M O T IO N A ID S
A R E EFFECTIVE B U S IN E S S B U IL D E R S

NEWSPAPER
MATS
RADIO
COMMERCIALS

24%

TV
COMMERCIALS

41%

LEAFLETS

52%

DISPLAY
SIGNS

63%

Put these sales aids
to w o rk for y o u r b a n k
• N E W Statem ent Enclosures
• N E W B an k D isp la y s
• N E W N e w sp a p e r M a ts
• N E W R adio Com m ercials
• N E W Television Com m ercial Films
• N E W W in d o w D isp la y s
ONLY AMERICAN EXPRESS TRAVELERS CHEQUES DO SO MUCH FOR YOU AND YOUR CUSTOMERS

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Federal Reserve Bank of St. Louis

Northwestern Banker, May, 1954

6

r

" Banker's B a n k " ?
r

Accuracy that joins
1,000,000 parts of a

>

forty-story building,
straight and true to the
last fraction of an inch.

ACCURACY
*

Accuracy that takes
$30,000,000 a day
in correspondent business
in stride — without

A.

an error of a penny.
That’s what makes
a “ Banker's Bank."

This is

*

your Republic!

CAPITAL AND
SURPLUS $50,000,000
LARGEST
IN THE SOUTH
MEMBER FEDERAL DEP OS t t I N S U R A N C E C O R P O R A T I O N
Banker, M a y , 1954
Digitized for Northwestern
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Federal Reserve Bank of St. Louis

4*

I h > u r

H u it ín '

DES MOINES
Oldest Financial Journal West of the Mississippi
60th Year

The following letters are from
Northwestern Banker readers. Your
views and opinions on any subject are
welcome in this column.
"Very Good O n e s"
“ Just to show you that I do read your
editorials I think you have some very good
ones in the April issue of the N orthwestern
B anker .

“ It is a lot of satisfaction to me to see
that our present President has recognized
Lindbergh, despite the fact that two of the
former presidents tried to tear him to pieces.
I was also very much interested in your
letter to McCarthy of Wisconsin. I was in
hopes that this administration would recog­
nize honest investigations, but our friend
Ike being an army man— I guess he does
not like to hear about the army.”
Charles C. Kuning, Vice
President, American Nation­
al Panic and Trust Company
o f Chicago.

" A p p r e c i a t e the In te r e s t"
“ I have before me the beautiful plaque
presented to me in Garden City under the
caption of ‘Distinguished Farm Banker of
Kansas.’ I am rather humble in my ac­
ceptance, because of my own conviction
that there were many more bankers better
fitted for such recognition in our State.
“ Nevertheless, I appreciate sincerely find­
ing your signature thereon as Editor of the
N orthwestern B anker , and I would like
for you to know that I appreciate the in­
terest of yourself and your fine magazine
on my behalf.”
E. N. Downie, President,
The Fidelity State Bank,
Garden City, Kansas.

"E x c e lle n t P ic tu r e "
I would like to have you send me five
copies of your excellent colored picture,
‘In a Tough Spot,’ in the April issue of the
N orthwestern B anker . I have grand­
children and they are always eager to have
these pictures.”
P. Ft. Lindaman, Vice Presi­
dent and Director, Peoples
Savings Panic, Wellshurg,
Iowa.

"Se n d Tw o C o p ie s"
“ I would much appreciate receiving two
copies of the picture, ‘A Thoroughbred,’
which appeared in your March issue.”
Monroe Heggland, Depart­
ment o f Public Delations,
Household Finance Corpora­
tion, 919 North Michigan
Avenue, Chicago 11, Illinois.


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Federal Reserve Bank of St. Louis

No. 802

IN THIS MAY, 1954, ISSUE
E D IT O R IA L S
Across the Desk from the Publisher.................................................. 10, 11
FEA T U R E A R T IC L E S
On the Cover.......... ............................................................................... .......
Dear Editor .................................................................................................
Frontispage— Unfitting Reward
..................... ..... ..........................
Community Calendar o f Events Added to Bank’s Public Service
.............................. ........................................ ..............M iss Janet K elly
Midwest Bankers Look for Stable Farm Income in 1954
A N or th w ester n B a n k e r Survey.................................. 16, 17, 18,
News and Views of the Banking W orld.... .................B en H aller, Jr.
How a Trust Department Can Increase Your Earnings..................
............................................................................................ S. G. Barnard
How I Would Spend a $1,000 Advertising Budget in a Small Bank
A N o r th w ester n B a n k e r Survey................................................ 22,
Bankers You Know— William George Brumder..................................

4
7
13
15
19
20
21
23
24

B O N D S A N D IN V E S T M E N T S
Lower Rediscount Rate Can Mean New Era o f Easy Money.......
................................................................................... Raym ond T rig g er 43
IN SU R A N C E
Selling Ideas fo r Banker Agents................. ....................... ................... 47
STATE B A N K IN G N E W S
Minnesota News ...... .................................. ...............................................
Twin City News...................................................................................
South Dakota News....................................... .............................................
Sioux Falls News....................
North Dakota News........................................................................
North Dakota Bankers Convention Program......... ..................... .
Montana News ............
Nebraska News .....................................
Omaha News ........................................................................................
Lincoln News ................ ............................................ ........................
St. Joseph News.... .......................................................................................
Iowa News ...... ...................... ..................... .................................... ............
Des Moines News...... ............................................... .........................
Council Bluff’s Host to Group 5.... ................................... ................
Newton Host to Group 6....................................................................
Group 10 Will Meet May 6..................... ........................................
Independence Host to Group 7..........................................................
Charles City Host to Group 3...........................................................
Group 2 Meets at Storm Lake....... ....................................... ...........
Group 4 Meets in Dubuque.................................................................
In the Directors’ Room..... ......................... ............................. ..................
Conventions ...................................... .................. „ ......................................
Is a Bank Customer Obligated to Examine Check Endorsement?
— Legal Questions and Answers...................................... ....................

55
56
61
62
64
65
67
69
70
72
74
79
84
86
88
89
90
91
93
94
97
97
98

N O RT H W E STE R N BANKER
527 Seventh St., Oes Moines 9, Iowa, Telephone 4-8163
M ALCOLM K. FREELAND
CLIFFORD DE PUY
Associate Publisher
Publisher
B. STEWART H AA S
BEN J. HALLER, JR.
HENRY H. HAYNES
Associate Editor
Editor
Managing Editor
MARY LOU MURPHY
ANNE W ALLIN
ELIZABETH COLE
Circulation Department
Auditor
Advertising Assistant
AL KERBEL
A . M. LEMIEUX
PAUL W. SHOOLL
Field Representative
Field Representative
Field Representative
NEW YORK OFFICE
Frank P, Syms, Vice President, 505 Fifth Ave., Suite 1806
MUrray Hill 2-0326
DE PUY PUBLICATIONS: Northwestern Banker, Underwriters Review,
Iowa-Nebraska Bank Directory

Northwestern Banker, May, 1954

8

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The Recordak Ban ta m M icro film er

The R e c o rd a k D u p le x M ic ro film e r

combines microfilmer and film reader
in one compact unit. Semi-automatic
in operation. Just press a button to
take pictures.

is a desk-top unit with built-in auto­
matic feeder. It photographs over
500 check fronts per minute at 40-1
reduction ratio.

photographs fronts and backs simul­
taneously at high speed and high re­
duction ratio. Endorses or cancels in ±
same operation.

Banker, May , 1954
Digitized for Northwestern
FRASER
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Federal Reserve Bank of St. Louis

J-v

9

the microfilmer you use
IVTicrofilmers— like bank buildings—
must be designed with certain require­
ments in mind.
For this reason, no one microfilmer is
best for everyone. The ideal microfilmer
for one bank might be an unwise invest­
ment for the next. It just doesn’t make
sense, for example, to pay for features
and refinements which can’t be used
profitably.
Because Recordak recognizes this im­
portant fact, it offers 6 different types of
microfilmers instead of just one or two.

And they’re designed with all banks, all
budgets in mind.
One of these precision machines will
prove just right for your bank . . . will
give you the advantages of modern micro­
filming at lowest cost. And you’ll be sure
before you buy or rent it. For youi* local
Recordak representative will analyze your
requirements . . . show you how banks
such as yours save dollars every day.
Y ou’ll appreciate his experience and guid­
ance— and his services are yours through
the years.

Write today for new, illustrated folder which gives
you the side-by-side picture of Recordak equipment.
It includes full detail's on the new Recordak Super matic Microfilmer (illustrated). Recordak Corpora­
tion (Subsidiary of Eastman Kodak Company), 444
Madison Avenue, New York 22, N. Y.
“ Recordak” is a trade-mark

^PECDPDPP
(Subsidiary of Eastman Kodak Company)

originator of modern microfilming —
and its application to banking systems

a ll r e q u ir e m e n t s in m in d

The R e c o rd a k Triplex M ic ro film e r
features D uo-type recording at high
reduction ratio! A lso photographs
documents up to 14 in. wide on full
film width.


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Federal Reserve Bank of St. Louis

The R e c o rd a k C o m m e r c ia l M i c r o ­
filmer is a low-cost efficient unit which
photographs the fronts or fronts and
backs of documents across the full
film width.

The R e c o r d a k S u p e r m a tic M i c r o ­
filmer photographs fronts and backs
sim u lta n eo u sly at 4 0 -1 redu ction
ratio, highest available today. Six ad­
ditional features.

p .g. See the sensational Kodak Verifax Printer, now distributed nation­
ally by Recordak. It makes 3 copies
of a document in 1 minute . . . for
less than
each.

Northwestern Banker, May, 1954

10
great m any things for which to be th an kfu l.
A s someone rem arked, “In recession you tighten

your belt; in a depression you have no belt to
tighten, and if you lose your pants it’s a panic,”
but so fa r Ave have not yet had to even tighten
our belts.
A m erica is a great country whose boundaries
of progress are being expanded every day in the
laboratories where scientific minds are creating
new articles to m ake our lives more efficient and
more livable.

A n d the banks of our nation are

furnishing the fu n ds to produce and sell these
articles to

a nation

of

160,000,000

people

and

whose population is grow ing greater each year.

“ America hasn’t begun to grow.”

OqjcVp ^swhqsL TXbuam^:
President, A m erican F ed era tion o f Labor, W ashington,
D. C.
In discussing labor costs for housing purposes,
you s t a t e d :

“ Financing charges paid to bankers

are more responsible than labor costs in keeping
construction prices high.
“Mortgage rates and charges have risen until

A c ro s s th e D e s k
F r o m th e P u b lis h e r
(D& jclA J 'A ja n k

7X 1. J o tt s w :

V ice President, Chase National Bank o f the City o f N ew
Y ork

“I get sick to death of all this talk of recession
and depression and decline— America hasn’t be­

now they are the largest single item in the cost
of housing. On a 25-year mortgage, the home
owner pays out about as much interest as he does
in retiring the principal.
“ The banker is the one who gains. W e never
hear anyone suggesting an investigation of this
type of racketeering, but we hear a lot of charges
about featherbedding practices among construc­
tion

workers

and

about

bricklayers

who

are

gun to grow,” is the w a y you expressed your

claimed not to lay enough bricks.
“ The largest single item in the cost of housing-

opinion of current conditions, and your b elief in

today is the hiring of money.”

the

U n ited

States,

when

you

spoke

before

a

Let’s take a look at your charges one at a tim e.

1.

w om en’s finance forum .
Y o u also m entioned “this great age in which

science has filled our lives with comforts and

“ Bankers are more responsible than labor

costs for keeping construction prices high.”
The average interest rate for home loans is 5
per cent. (1.1. loans are 4 y 2 per cent, but they are

luxuries.”
W h a t is the ban k’s part in the future of A m e r­
ica “ which hasn’t begun to g ro w ” ? First o f all it

60 per cent guaranteed by the V eteran s A d m in is­
tration and hence have less risk.

m ust keep its own house in order, based on sound

F .H .A . loans are d1/^ per cent plus V2 per cent

and sane banking principles and procedu res; and

m utual insurance prem ium or 5 per cent effective

second, banks m ust be ready and w illin g to fu r ­

to the borrow er and d3/^ per cent to the lender.

nish capital for “ men and m achines” when such

These rates are all tied to the governm ent bond

an investm ent will mean greater prosperity and

m arket,

more jobs.
A s you also put it, M r. Totten, “the bank ties

have alw ays been 2 to 2 3/2 per cent higher than

and interest rates

on home m ortgages

yields obtainable on long term governm ents, be­

together all of mankind’s effort. The bank is the

cause the

hub of the wheel.

determ ined to be worth that much more than non­

It must finance wisely and

risk element

on m ortgages has been

economically all the rapidly moving inventions

risk, 11011-servicing governm ent bonds.

of men’s mind.

are NOT

A bank is a great department

the cause o f high

B ankers

construction

costs.

store with amazing facilities where you can ask

T o d a y m oney is plen tiful in the country banks,

for almost anything and get it.”

and Savings and Loan associations and lenders

Isn ’t it tim e to talk of the m any and w onderful
advantages we have in the U n ited States instead
of preaching pessimism and gloom ?

Digitized forNorthwestern
FRASER
Banker, May, 1954
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Federal Reserve Bank of St. Louis

W e have a

are looking for good m ortgage loans and the rates

are not increasing, although labor costs are.
D o n ’t blame the bankers, M r. M ean v, but take

11
a look at your own hourly rates paid to labor for

L e t’s not blame the bankers, M r. M ean y, for

building houses— they are the highest in history.

increased building costs, which ha ve resulted more

2.
“Mortgage rates and charges are the largest
single item in cost of housing.”

from your efforts in increased w ages, than from

L e t’s assume a $10,000 loan at 5 per cent for 20

The largest single item in the cost of housing

T w en ty years

is not “ the hiring of the m on ey” when you con­

equals $15,840 to

sider that in the average house built tod ay 40 per

years at $66 per m onth paym ent.
equals 240 m onths tim es $66

the interest rates charged for loans.

repay a $10,000 loan or interest of $5,840.

O bvi­

cent is labor and 60 per cent m aterials. F or every

ously if the $10,000 had not been invested at 5 per

5 w orkers em ployed at the site o f construction

cent in a reducing balance first m ortgage, it w ould

projects an average of 6 are em ployed in activities

be w orth at least the governm ent bond yield of

servicing it.
L e t’s stop calling bankers racketeers who loan

2 or 2 % per cent.
M r.

m oney in a com petitive m arket fo r housing pur­

M ean y, but banks are prohibited by charter from

poses— after all they have no union to force any

You

referred

m aking

to

“ a 25-year m ortgage,”

a conventional loan fo r more than

10

interest rates they please on the borrow in g public.

years, and savings and loan associations fo r more

Secretary of Labor James P. M itchell, a friend

than 20 years, and either type of institution m ay

of yours, in com m enting on your statem ent said,

invest in (L I. loans or F .H .A . loans in compliance

“ Mr. Meany is not an economist and I think his

with governm ent regulations.

judgment is wrong.”

E xperience shows that practically no loan stays

So do we.

on the books for the full period o f am ortization,

(DqWf (jJillwML Yft. IfYlcodin^,

and the average is about 6 years.
N o t the “ cost of hiring money” as you mention,
M r. M ean y, but labor is the largest single cost of
construction.
costs

are

m aterials

A b o u t 45 per cent of the “ on site”

labor,
used

plus

the

which

fa cto ry

consist

costs

m ostly

of the

of

labor

charges. In most cities there has been an increase
in w age rates every year for the past 6 or 7 years
and that has m eant an increased cost of building.
H ere are the hourly labor costs in one typ ical

Chairman, F edera l R eserv e Board, W ashington, D. C.
Should or should not the N ew Y o r k and Chicago
banks

declassified

as

Central Reserve

City

The N orthwestern B anker thinks they should
be changed to the status of Reserve C ity B anks
for these reasons :

1. New York and Chicago banks are required
to keep 22 per cent of their deposits in re­

m id-w estern c i t y :
1. B rick layers ___ $3.50

6. Op. E n gin eers..$2.63

2. Plum bers ..... . .. 3.07

7. P lasterers _____ 2.63

3. E lectricians ....... 2.93

8. Painters ............ 2.45

4. Ironw orkers

be

institutions'?

.... 2.83

5. Carpenters ____

2.63

D rivers

2.20

10. Laborers ...........

9. T ru ck

1.90

The sad part about increased labor costs as one

serves whereas Reserve City banks keep 3
per cent less or 19 per cent in reserves. Under
our present banking laws and F.D.I.C. re­
quirements we see no reason to penalize New
York and Chicago banks an extra 3 per cent.
2. A change in the law would release $600 mil­
lion in reserve funds represented by the extra

contractor told ns, “ has been that there has not

3 per cent and would give these banks about
$6 million annual additional gross income.

been a corresponding increase in labor efficiency
every tim e there has been a raise in w a g es,” and
thus labor has contributed to the increased cost

3. These two cities were classified as Central
Reserve
Reserve

of building.
A prom inent lender in the m ortgage field when

designation serves no beneficial purpose at
this time.

the N orthwestern B anker interview ed him on
this su bject said, “ let not your friend, Mr. Meany,

forget that the mortgage money that is available
to finance his laborer’s homes comes from the sav­
ings of his own people in banks, life insurance

Cities in 1913 when the Federal
System was established, but this

W h e th e r
has

the

you r

authority

Reserve
to

B oard,

m ake

such

M r.
a

M artin,

change

or

whether it will require a revision in the Federal

policies, and Savings and Loan associations. It’s
a great store of wealth, individually owned by

Reserve Act by Congress is now being considered.

Tom, Dick and Harry, and pooled to make avail­
able adequate funds with which to finance homes

banks the reserve requirem ents should be based

and factories. A fter all, money has a price in the

deposits.

In all fairness to the N ew Y o r k and Chicago
on 19 per cent and not 22 per cent of their dem and

market place just like laborer’s wages and pota­
toes and automobiles and services, and it is sub­
ject to the pulling and tugging of the economic
forces.”

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Northwestern Banker, M a y , 1954

12
y

for Day and Night

and efficiency
in the handling of your
Transit Items

*

CORRESPONDENT BANK
MEMBER

Northwestern Banker. Ma y , 1954

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F E D E R A L D E P O S IT

INSURANCE

CORPORATION

X

Northwestern Banker, May, 1954


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Federal Reserve Bank of St. Louis

14

EFFICIENT UTILIZATION of equipment results in
substantial savings for the St. Joseph Valley Bank.

LYNN D. SWINEHART, Vice President
St. Joseph Valley Bank, Elkhart, Indiana.

“New G/fcatum al Posting Plan saves more than
100% annually on our equipment investment”
— Si. Joseph V alley Bank, Elkhart, Indiana

“ In M arch 1952 our bank realized
that our Dual Plan o f Posting could
not meet the demands o f our in­
creased volume. W e installed the
National U nit Plan, replacing a fourmachine D ual Plan System with two
National ‘ 135’ U nit Plan Posting
M achines.
“ This National System is saving
us $8,932 a year, which means that
we are receiving better than a 100 %
annual return on our equipment in­
v e stm e n t. F u rth erm o re, our tw o
Nationals have met our increased
volume with ease.
“ W e have realized a 5 0 % savings

in valuable floor space, a substantial
reduction in equipment maintenance
and depreciation costs, and a reduc­
tion in payroll costs by using two
machines instead of four. Reduction
in stationery costs— including the
elimination o f carbon paper— reflects
an annual savings o f over $500 in
these expenses.
“ Our bookkeepers are well pleased
with the National U nit Plan. Train­
ing costs are negligible. The amazing
simplicity o f operation has produced
greater speed and efficiency with less
effort. The National 7 -W a y Proof
Plan has greatly reduced the cost

o f overtime.”
So says M r. Lynn D . Swinehart,
Vice President o f the St. Joseph
Valley Bank o f Elkhart, Indiana.
H ave you investigated the many
tim e-and-m oney-saving advantages
o f the N A T I O N A L U N IT P L A N ? Call
your nearby N ational representative
— a trained systems analyst— for full
details. Or write us at D ayton.
• TR A D E M AR K REG. U. S. PA T. O F F .

Q /fya tto n a l
AC C O U N TING M A C H IN E S
A D D IN G M A C H IN E S

THE NATIONAL CASH REGISTER COMPANY,
Banker, May, 1954
Digitized for Northwestern
FRASER
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Federal Reserve Bank of St. Louis

Dayton 9, Ohio

•

C A SH REGISTERS

15

f'on u n n n ity

in t e n d

A d d e d to H ank's
M a s t e r C a le n d a r in L o b b y P re v e n ts D u p lic a tio n o f D a te s A lr e a d y C h o se n

UR Community Calendar was
an original idea and seems to
be snowballing in popularity
locally and within the banking frater­
nity. Briefly, here is the story behind
this popular service offered by our
bank.
We sent a mimeographed letter to
the presidents of the 250 clubs on our
Chamber of Commerce mailing list.
In it we called attention to the vast
number of events that take place in
our city, then announced, “With a
thought to assist you in scheduling
your community events which would
affect more than 100 people without
duplicating the dates already chosen
by other organizations, The Richland
Trust Company is inaugurating an­
other “first in Mansfield” public serv­
ice.
“A Community Calendar will be ac­
cessible in the lobby of ‘The Bank on
the Square’ for your group to enter
your dates. Each page will contain
the calendar for each month of the
year so that you may project your
program dates through 1954. This cal­
endar will be available during bank­
ing hours for our customers to read,
which in turn will serve to advertise
your events.”
We received excellent response to

O

our request for cooperation and soon
dates were being entered in our Com­
munity Calendar. This rests on the
writing table in our lobby and is sim­
ply standard size white sheets 22
inches long by 17 inches wide, held
together with two loose-leaf rings. I
have marked off each page into sep­
arate months with three inch square
blocks for each day. A fountain pen
and lamp are placed beside the cal­
endar for the convenience of anyone
entering events. Reprints of the cur­
rent month’s calendar are also on the
table.
W e then pick up the dates for each
month from the lobby Community Cal­
endar and publish them in a Commu­
nity Calendar ad in our local news­
paper on the Sunday preceding the
first day of each month. The schedule
for the month of May, for instance,
appeared in the paper of Sunday, April
25th, and the schedule for June will
appear on Sunday, May 30th.
The calendar is run in the paper at
community advertising rates of $1.16
per inch. The ad carries a coupon
which can be sent to the bank request­
ing to be put on our monthly mailing
list for reprints of the calendar. Our
list of names now numbers about 150,

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

By M I S S J A N E T K E L L Y
Assistant Treasurer, Richland
Trust Company, Mansfield, Ohio

with several of the requests coming
from school principals asking for a
copy for each of their teachers. These
reprints are also available singly in
the bank lobby.
As of today, we have two popular
restaurants in town using the reprints
as place mats. I intend to contact
more for that type of advertising out­
let,—End.

♦ CO M M U N ITY CALENDAR ♦
( VARIOUS GROUPS. I
BUTLER OFFICE

UNITY CALENDAR IN O
L ORGANIZATION LISTED I

THIS CALENDAR FOR YOUR PERSON,
f DUPLICATING DATES. OR MAIL CO

J AN U ARY 1954
SUNDAY

MONDAY

TUESDAY

Tift RICHLAND^TRUST COMPANY

WEDNESDAY

THURSDAY

12-27-53

FRIDAY
1
Happy
and
Prosperous
New Year
To One and All!

the^CO04MUpiînry"^ALE?/daR1reprtalitd‘ eo whiteVa^eVsuiTa°l

-----------------------------------------------------------

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Federal Reserve Bank of St. Louis

u, ♦

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9

T H I S is how the Community Calendar,

distributed by the Richland Trust Com­
pany of Mansfield, Ohio, looks in reprint
form. Full size is 13” wide by 10” deep.

SATURDAY
2

Uni». Club Stag BridffC

♦ ---------------------------------------------------------------------------------------- “ T H E R O B E “ — M A D IS O N T H E A T R E

♦_______
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“ TH E R O H E “ — M A R IN O * T H E A T R E

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♦

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W E E K ___________________________________________________ _____

---- j--------------- j--------------- 1-------------- j--------------- 1--------------- 1--------------

♦ 31

Northwestern Banker, May, 7954

16

M id w est Hauliers
Stable

ìah »U

tor

Farm Marame ¡a

S u r v e y S h o w s E x p e c te d R ise in H o g P ro duction,
W ith S t e a d y M a r k e t in C attle and C a sh C ro p s
A N ORT HW ESTERN BANKER
Survey

IDWEST farmers and livestock
producers can generally look
forward to a year of stable
prices and income, with the ever-pres­
ent “hedge clause” of weather thrown
into consideration. This is the gen­
eral opinion of a number of bankers
in upper midwest states who have
sent the N orthwestern B anker a brief
report on agricultural conditions in
their respective areas.
Hog production is expected to in­
crease with a resultant increase, tem­
porarily at least, in earnings. The
general opinion is that the cattle mar­
ket has now stabilized and will prob­
ably remain firm throughout the rest
of 1954, barring severe drouth or
more drastic unemployment which
would curtail beef consumption.
The factors of weather and farm
costs apparently are the principal
stumbling blocks to definite predic­
tions of increased farm income. If
both these factors retain a favorable
balance, farmers can look forward to
a better year than 1953.
The N orthwestern B anker asked
the following six questions in its sur­
vey:

M

1. What is your opinion of the
outlook for livestock produc­
tion and prices?
2. What crops are your farm cus­
tomers planting this year? Are
there any material changes
from previous years? If so,
what?
3. What is the feeling in your area
on the present dairy situation
concerning parity prices and
surplus?
4. Has there been any appreciable
gain made in soil conservation
in your area the past feAV years?
What programs are planned for
your section this year? l)o you
assist in such work?
5. What is the feeling at this time
towards the government’s ag­
ricultural program?
6. Do you think farm income gen­
erally Avili he up or doAvn this
year?
Northwestern Banker, May, 1954


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Federal Reserve Bank of St. Louis

All the replies except one are num­
bered by paragraph to correspond to
the above questions. Here is what
these bankers have to say (comments
during first part of April):
H. D. K O S M A N
President
Scottsbluff Natio nal Bank
Scottsbluff, Ne braska

1. It appears to me that beef cattle
numbers are still exceedingly high.
Fortunately, a good dressed beef de­
mand and orderly marketing to date
have been combined to produce a
fairly stable price for fat cattle. In
my opinion, feeder cattle prices at the
present time are a little high, since
insufficient margin is allowed the feed­
er. The future depends upon many
unknown factors which could easily
upset the present balance. The con­
tinuance of widespread drouth could
flood the cattle markets and cause a
serious price break. An increase in
unemployment could reduce the de­
mand for dressed beef producing a
similar lowering of the price for fat
cattle. Our general policy is to pro­
ceed cautiously.
2. Our irrigated area will produce
the usual cash crops such as sugar
beets, white and pinto beans, and po­
tatoes. Significant changes involve
diversion of some acreage from pota­
toes to sugar beets and beans. This
is understandable considering the gen­
eral potato market situation. With
new hybrid corn varieties adaptable

to this area, more acreage will be
planted to corn rather than to barley
and oats.
3. While we do not have many indi­
viduals affected by this situation, the
general opinion is that changes in the
support program should be made as
gradually as possible.
4. We have practiced soil conserva­
tion methods and crop rotation in this
area for many years. Much work re­
mains to be done relative to wind
erosion in our lighter soils and we
try to work closely with our county
agent, the Soil Conservation Service,
and the Extension Department of the
University of Nebraska. We encour­
age our customers to utilize proven
conservation methods.
5. The general feeling on the gov­
ernment agricultural program is fa­
vorable. Most critical individuals feel
the government should give the farm­
er definite assurance that the change
to flexible supports will be gradual
and will extend over a long period of
time.
6. My opinion is that farm income
in this area will be fairly stable. In­
come may be reduced if the by-prod­
ucts of our agricultural products can­
not be fed to cattle on a profitable
basis. On the other hand, improve­
ment in the 1954 potato price may give
our farmers additional income not
realized this year.
In an irrigated area, with beans
supported and the sugar price fairly
stable, we do not anticipate much of
a change.
G E O . E. B U S C H E R
President
Alexandria Sta te Bank
Alexandria, Minnesota

MORE CALVES are reported this year
than in 1953, according to this survey
among cattle state bankers.

1.
In our opinion the outlook for
livestock production and prices varies.
From all indications beef prices, while
in the dumps this past year, are now
on the upgrade. While hog prices
have hit what we might call an alltime high, the production this year
will be up over 40 per cent by virtue
of more sows to farrow, which would
indicate to us that within the next six

to nine months when these pigs get on
the market, prices will progressively
go down on pork.
2. The farmers in this vicinity oper­
ate on a small scale so far as tillable
land is concerned, and in most cases
raise crops for feed purposes. Yet,
the last few years more of our farm­
ers have gotten into soybeans aside
from the regular oats, barley and flax,
as well as corn. The outlook this
year is for more soybeans, hay crops,
flax and corn. Soybeans seem to be
very popular and this is very notice­
able as soybean commodity loans in­
creased considerably this year.
3. The feeling on the present dairy
situation seems to be universal and
especially in dairy counties. Some
of our farmers feel that in view of
the decrease in parity that they will
be obliged to increase their herds.
This should bring up the price of
milk cows if all have that same plan­
ning.
4. The matter of soil conservation
in our county is gaining wide popular­
ity. Not too long ago the county
started negotiations to set up on or­
ganization for that purpose, and it is
making very good progress.
5. The matter of the government’s
agricultural program naturally ties in
with the dairy farmer so far as parity
goes, and many of our farmers feel
that this is somewhat of a political
football.
6. It is the consensus of opinion
and most obvious that the farm in­
come this year will be down rather
than up, and we feel that the farmers
recognize this situation and are being
very cautious in their spending for
new equipment and tightening up in
every way possible, and also exercis­
ing better supervision from a manage­
ment standpoint.

SOYBEANS are being planted in greater volume this year in upper midwest states,
due to shifting to this crop from corn by those farmers who are observing acreage
allotment requirements of the Department of Agriculture.

slaughter will continue to be an in­
fluence on lamb prices.
2. Most of our customers are sow­
ing and planting oats, corn and soy­
beans. The only material change from
the previous year is the market pros­
pects for soybeans and it is a matter
of keen interest as I think the prices
will continue strong this summer as
exports are expected to reach a new
peak.
3. We have had high supports and
the dairy problem continues to exist.
I believe it best to try Secretary Ben­
son’s way; go along with the lower
support (75 per cent) of parity and
all try to aid in increasing consump­
tion.
4. Yes, there has been, I think, ap­
preciable gains made in soil conserva­
tion in our area in the past few years.
I am a guardian of one of our bank
customers and I have gone into this
program very thoroughly and assisted
in this work for my ward.
5. I think in this county the feeling
towards the government’s agricultur­
al program is divided about 50-50;
F R A N K C. C R O N E
some are for it and others against it.
President
6. The prices of eggs, milk, potatoes
The Natio nal Bank of W ashin gton
and
butterfat are lower, so therefore
Was hingt on , Iow a
I can’t help but think that the farm
1.
It is reported that the number of income will be down this year.
cattle on feed January 1, 1954, has
been estimated down about 9 per cent
A LBERT E. L E U T H O L D
and yet in the Corn Belt territory the
Assistant C ashie r and A g Representative
number of cattle on feed is close to
The Yellowstone Bank
the number on feed a year ago. So
Laurel, M o n tan a
1. Very little change in livestock
this makes me believe that we can
look for fairly substantial returns to production is expected this year over
the market during the period May to last. Most ranchers are reporting
August, as the most hopeful feature good lamb and calf percentages. Cur­
is that the adjustment to lower prices
rent prices are slightly lower now
than last year; however, contract
has now been made and no further
declines are in view. Also, I believe prices for fall delivery are comparable
the prices for hogs will continue rela­ with last year.
tively high until late summer. The
2. The main cash crops produced in
this area are wheat, beets, beans, bar­
price of wool has been stabilized with
a support of 90 per cent of parity and ley and oats. Hay and corn are pro­
the continued high rate of cattle duced for feed. We expect a slight

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Federal Reserve Bank of St. Louis

increase in beet acreage. The re­
quired reduction in wheat will for the
most part be planted to barley. Corn
for silage is becoming more popular.
3. There are very few surplus dairy
products in this area; however, dairy
farmers resent the reduced support
price while feed grain supports con­
tinue at a higher level.
4. Strip farming and stubble mulch
farming is commonly practiced by
our dry land farmers; mainly to com­
bat wind erosion. Some leveling and
drainage work has been done in the
irrigated sections. The programs will
continue. We strongly endorse soil
conservation and assist financially
wherever we can.
5. Farmers generally favor the high
support prices and are reluctant to
accept the lower, flexible supports
while things they buy continue to
rise.
6. We expect a lower farm income
for our area this year due to a re­
duced wheat acreage and slightly low­
er prices. Prospects are this down
trend shouldn’t exceed 5 per cent.
C U R T I S B. M A T E E R
C ash ie r
The Pierre Natio nal Bank
Pierre, South Da kota

1. We believe that livestock produc­
tion will be up in our locality this
year and that the prices have become
more or less stable. In clerking a
number of auction sales, we find the
price of livestock seems to have hit a
firm footing and we do not look to see
too much decline in the prices.
2. Our chief crops will be wheat
and corn, with some oats, barley and
rye. Of course, our chief crops are
wheat and corn, and we find our
customers are planning heavier corn
production this year, possibly due to
the fact that they had an exception­
ally good crop last year.
3. There seems to be considerable
Northwestern Banker, May, 1954

18

PRICES on beef cattle are expected to remain steady throughout 1954, barring drouth,
according to bankers sending in reports to the N orthwestern B anker .

prices have just about leveled off. I
don’t hear any complaint amongst our
farmers today on the prices they are
getting for cattle, hogs and sheep, and
I believe that if we can produce a
crop here and raise feed, our farmers
will do pretty well on their livestock.
Quite a number of young suckling
calves were fed out during the winter
and sold this spring. About a month
ago, one young farmer sold 12 head
of last year’s calves that he had fed
all winter and averaged $207 apiece.
Several others did almost as well.
2. The number of acres of wheat
has been cut back quite materially
and naturally those acres will be
shifted into other grain, principally
into barley, flax and perhaps some
oats. I believe that our farmers will
start producing a little more corn as
quite a lot of them are going back
into cattle and hogs. This is not a
commercial corn country and corn
grown here is used almost entirely
for feed in this area.
3. I haven’t heard too much com­
plaint from our farmers and dairy
men. One farmer told me that he
could still make money producing
milk at the reduced price and he was
of the opinion that certainly some­
thing had to be done with the tre­
mendous surplus of butter piling up.
We are not a dairy country and most
of our dairy men in this area sell
their milk to local processors and I
would say a large part of it is con­
sumed here locally and they seem to
be doing all right.
4. All through the state of North
Dakota, soil conservation programs
have been encouraged for several
years. Quite a number of farmers are
planting a portion of their farms into
grasses. Some of them have even
drained certain slough areas and
E. L. FOU KS
planted the water runways into grass­
President
es. The local office here in our coun­
First Natio nal Bank of Valley C ity
ty is encouraging farmers to put
Valley City, North Da kota
1.
I think the feeling in this com­ their farms on a diversified basis with
munity has pretty well solidified that the idea in mind to get each and ev­
ery field planted into some kind of
livestock production and livestock

discussion relative to the parity price
and surplus of dairy products but we
believe our dairymen will fall in line
with it. In talking over the matter
with one of our little dairymen, he
advised us he had signed a contract
with the milk company at the lower
price. We have noticed a consider­
able increase in dairy cows sold in
this locality and especially with the
FHA clients.
4. Soil conservation work has only
been in effect in our locality for the
past two years. We find there is a
100 per cent increase in farm plans
started this year as compared with
last year. The writer happened to
have charge of the farms in last year’s
program and this bank has always
had a very keen interest in this type
of work. We believe it is a big asset
to the community and have worked
for a long time to endeavor to have
Hughes county set up on this pro­
gram and two years ago this was ac­
complished.
5. We find the feeling towards the
government’s agricultural program is
quite divided. We find that the—let
us call him—“better farmer” is
for the Benson program, knowing
full well we must sooner or later get
the farmer off the roll of receiving
contributions from the government.
6. In regard to whether farm in­
come will be up or down this year, the
question is rather hard to answer.
Much of our territory depends on
wheat and corn for an income crop
and the weather element, of course,
enters into this but we feel, with the
amount of moisture we have to start
in the growing season with, that we
will have an increase in our farm
income this year.

Banker, Ma y , 7954
Digitized forNorthwestern
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Federal Reserve Bank of St. Louis

a grass or legume some time during
a ten-year period. The banks in this
state assist this program through our
Greater North Dakota Association
which gives prizes for the best
planned programs carried out by the
farmers.
5. I have talked to quite a number
of farmers and some of them natural­
ly are very critical toward Mr. Ben­
son’s methods and proposals. How­
ever, they are not all of that opinion.
I attended a political meeting here a
few days ago and a friend of Mr.
Benson made quite a talk on Mr. Ben­
son’s proposals and I noticed that he
got quite a hand and I am sure con­
siderable of this hand came from
farmers.
6. Farm income this year will de­
pend entirely on moisture conditions.
I believe that if we get adequate
moisture this summer conditions will
be better than they were a year ago.
In closing, I might say that it oc­
curs to me that a lot of criticism
directed at the Secretary of Agricul­
ture comes from our larger farmers,
most of whom have no livestock and
spend their winters in town or in
California or Florida. Personally, I
am satisfied that the Secretary of
Agriculture is looking at this matter
realistically and that if the politicians
would leave him alone, the feeling in
the country would be considerably
better. There always will be farm
problems and I for one feel that we
have an honorable man as secretary
and would like to see him given a
decent chance to work out some of
his proposals.
A. J. L O C H R I E
President
Miners Natio nal Bank
Butte, M o ntan a

1. There will be little change in
livestock production, and price will
be about normal with that of past
price adjustment.
2. No material change in crop plant­
ings.
3. There is no stimulated interest
in the dairy business in our district.
4. The several soil programs are
receiving some enlarged attention, but
results and responses are not enthusi­
astic. Banks have not been ap­
proached for any assistance thus far.
6.
I doubt the incentive necessary
to increase production this year.
BEN ABBEN
Director
Farmers Trust and S av in g s Bank
Spencer, Iowa

1.
Our hog production will be up,
perhaps 10 per cent or more in this
area, and farmers generally expect­
ing somewhat lower prices than they

19

are getting now; perhaps $20 to $23
per hundred.
2. The corn acres will be slightly
lower than last year and these corn
acres will be replaced with beans.
Some are talking flax and perhaps
popcorn, but there is no special price
incentive at the present time to plant
either one.
3. The dairy situation insofar as
parity prices are concerned will not
change a lot of the operation. The
farmers are not too happy about it.
The trend generally seems to be to­
ward more cows and fewer dairymen.
In other words, the five- and six-cow
man is disappearing and those who
are in the dairy business are in on
a larger scale and for milk production
rather than butter.
4. Our territory has shown quite a
gain in soil conservation over the
past several years. Most of the oats
ground is now being seeded. Al­
though we are not subject to a lot
of erosion, there are a lot more
grassed waterways. Not a great deal
of contour farming. The program for
this year will generally be along the
lines as practiced in the past. We do
very little work in the way of practi­
cal assistance, although we do talk
it up whenever we have the chance.
5. The farmers generally are defi­
nitely in favor of a continued agricul­
tural program. All of them realize
that the price support should be a lit­
tle lower but should not be cut in
two because our production costs are
at a high level and the chances of
cutting them down are slight. A good
share of our real estate taxes have
doubled and in some cases tripled.
Fuel costs, machinery costs, and labor
costs are at an all time high. The
feeling generally is that the govern­
ment has largely been a contributing
factor in making these costs high with
hidden taxes, high wage supports,
high transportation costs and all the
factors that help to build up the price
of an item needed by the farmer.
6. Generally the net farm income
for 1954 will be down slightly, de­
pending, of course, on the crop season.
A good manager and operator is per­
haps in a good cash position partly
because he is anticipating a down­
turn in income and also is not spend­
ing as much money for things that
he really would like because of the
continued price hikes by the manu­
facturers.
ROLLAND LARM ON
President
First Natio nal Bank
M c C o o k , N ebrask a

1. Livestock production will taper
off. Prices will remain about as they
are.
2. There is no change here in basic

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crops. This is in the semi-arid part
of Nebraska. Our basic crops are fal­
low wheat and corn and, of course,
we have a good many stock cattle.
Acreage allotments will cause more
sorghum to be planted.
3. There are not enough dairy cat­
tlemen around here to reflect an opin­
ion.
4. There has been a definite gain in
soil conservation. Our bank assists
in this.
5. The people around here are gen­
erally speaking in favor of the gov­
ernment’s agricultural program.
6. Net farm income will be down
this year.
C L A U D E M. J O N E S
President
The First Natio nal Bank
Miles City, Montan a

1.
We in eastern Montana are
strictly livestock country, with some
dry land farming and some irrigation,
but our greatest concern, of course, is
to the future of both cattle and sheep.

I ’ ve been rotating m y crops. F irst corn, then
soybeans, and then o il w ells.

2. Our grass conditions are excellent
at the present time and unless drought
becomes extensive in the south to the
extent that cattle are forced to mar­
ket, we estimate that our prices will
be somewhat in line with the present
prices, perhaps a dollar or two lower
on feeder cattle next fall.
3. We anticipate both wool and
lambs to be slightly above a year ago
in price, giving us an all-over farm in­
come about the same as last year.
4. Our beet acreage will be slightly
under a year ago and we will probably
have more acreage in new alfalfa.
The dry land farmers will reduce
their wheat acreage, of course, and
will substitute no doubt barley in
place of wheat.
5. Our good, substantial ranchers
have never wanted controls on cattle
and are opposed in general to subsidy
and government control.

FRED R O S A C K E R
Farm Representative
The C entral Natio nal Bank
Columbus, Nebrask a

1. The outlook for livestock pro­
duction and prices is much brighter
than a year ago. The more orderly
marketing has reduced our cattle
number without getting too much ton­
nage. We could see a depressing mar­
ket this fall, which would be caused
by extended drouth and a much heav­
ier pork supply; also there are more
cattle being fed at the present time
to be marketed this fall than a year
ago. The long-range program, as far
as numbers are concerned, doesn’t
look like we are cutting down. There
is a tremendous number of cows in
the country and following a good win­
ter we will wind up with an aboveaverage calf crop. The labor situa­
a tion will be a controlling factor on
future prices.
2. Our farmers followed the pro­
gram, as far as wheat is concerned,
but only about one-third have shown
intentions of complying on the corn.
The percentage of reduction was
pretty high in our territory, and the
majority of our farmers feed most of
their crop. Those who are following
are the ones who are forced to by
landlords wishing to take advantage
of sealing. There is quite a little re­
sentment toward the legality of the
feed grains for a substitution on idle
acres.
3. If price supports of butter had
been cut 15 cents a pound two years
ago, the majority of consumers would
never have formed the habit of eating
oleo. A lot could be done to promote
use of dairy products by educa­
tion and advertising, not only by farm­
ers, but by retailers and restaurant
operators. Health departments are
taking advantage of surplus and mak­
ing it very miserable for farmers try­
ing to cooperate. Their ever-changing
requirements make it impossible for
a tenant to cooperate.
4. Soil conservation is making a
steady growth in our territory. The
SCS office reported applications for
terraces and other work this year
were almost as large as total work
done up to date. Our bank has
launched a large soil testing promo­
tion in cooperation with the Nebras­
ka Conservation Foundation, Incorpo­
rated, and our county agents.
6.
Farm income will probably be up
in our area, due to better profits on
feeding and hogs, but depending some
on moisture conditions, overhead will
be slightly higher.
(This survey will be continued in
next month’s issue of the N orth w est ­
ern

B ank er .)
Northwestern Banker, May, 1954

20

News and Views
OF THE BANKING W ORLD
By Ben Haller, Jr., M a n a g in g E ditor

FTER a one month vacation tour
of Africa, Joe Snyder has re­
turned to his desk at the Manu­
facturers Trust Company in New York
where he is an assistant vice presi­
dent.

A

Safaris, Ltd. In the accompanying
photograph he is shown with Syd
Downey, who during the past 22 years
has become world famous as one of
the outstanding and daring “White
Hunters” of Africa.
Mr. Snyder is well known to bankers
in the midwest where he represents
the correspondent department of Man­
ufacturers Trust in Illinois, Indiana
and Iowa.

and chairman of the board of the Mer­
cantile National Bank, and J. B. Adone,
Jr., president of the National Bank of
Commerce and also president of the
Dallas Clearing House Association.
In expressing his thanks to the as­
semblage, Mr. Wooten stated, “The

*

Another banker from the southwest
receiving recognition recently was
Walter Reed Bimson, chairman of the
board and chief executive officer of the
Valley National Bank of Phoenix, Ari­
zona. Mr. Bimson was the subject of
a feature article titled, “The Brash
Banker of Arizona,” in the April 10th
issue of the Saturday Evening Post.
The article relates the transforma-

*

SAFARI BOUND— Joe Snyder (right),
assistant vice president of Manufacturers
Trust Company, New York, pictured with
Syd Downey, partner of Ker & Downey
Safaris, Ltd., during Mr. Snyder's recent
trip to Africa.

During the African tour Mr. Snyder
made a safari with the world re­
nowned company of Ker & Downey

*

When Ben H. AVooten, president of
the First National Bank in Dallas,
Texas, retired recently as chairman of
the board of the Federal Home Loan
Bank of Little Rock, Arkansas, he was
made guest of honor at a dinner in
genuine Texas style. More than 1,300
Dallasites and others from widely
scattered points of the nation over­
flowed the Crystal Ballroom of the
Baker Hotel to pay him tribute for his
outstanding accomplishments in many
fields of business and public work.
Seventeen speakers, including the
governors of four southwest states,
took the platform to commend Mr.
Wooten for his distinguished record
of service. His retirement from the
Federal Home Loan Bank System cli­
maxed 21 years of association with
that group.
Mr. Wooten was given special thanks
for his constant work in the fields of
religion and education. Praise came
also from fellow Dallas bankers, among
them R. L. Thornton, mayor of Dallas

THE GOVERNORS of four southwest states were among the speakers paying tribute
to Ben H. Wooten, president of the First National Bank in Dallas, at a dinner recently
(see story above). Pictured standing are Governor Francis Cherry of Arkansas, left, and
Governor Allan Shivers of Texas. Shown seated, left to right, are Mr. Wooten, Governor
Johnston Murray of Oklahoma; Governor Edwin L. Mechem of New Mexico, Hugh J.
Graham, president of the Albuquerque Federal Savings and Loan Association,
Albuquerque, New Mexico; and Dr. J. C. Matthews, president of North Texas State
College, Denton, Texas.

Northwestern
Banker, May, 1954
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Federal Reserve Bank of St. Louis

best Social Security number I know is
the street address in front of a home
that’s paid for.”
*

*

*

W A L T E R R E E D B IM S O N
S u b ject of feature article in
Saturday E venin g Post

tion under Mr. Bimson’s guidance of
the Valley National from deposits of
$6,700,000 in 1932 to its present total of
$316,046,000. The bank climbed from
557th place in national ranking to its
present place of 70th, with customers
increasing from 12,000 to 300,000.
Author Neil M. Clark comments that
the substantial growth was due to Mr.
Bimson’s first order, “Make loans! That
is the way to recovery. I want this
period of automatic refusal to end
now. Start making loans tomorrow.
The biggest service we can perform
today is to put money into people’s
hands.” The author goes on to point
NEW S AND VIEWS . . .

(Turn to page 53, please)

!#««• a Trust

ite p a rtm e n t

Can in erva se

ri arnini/s
n
o
Y

The A n s w e r to a Bank P re sid e n t W h o W a n t s to K n o w W h e th e r
Su ch a D e p a rtm e n t S h o u ld B ecom e A c tiv e in H is In stitu tio n
W ritten E specially fo r
The N orth w estern B an k er

By S. G. B A R N A R D
Secretary and Trust Officer
Bankers Trust Company
Des Moines
HY should our bank have a
trust department?” Let’s as­
sume the question has been
asked by the president of our bank
and in answer we are attempting to
justify the creation of such a depart­
ment. The following is offered as a
reply which might have that effect.
Well, Mr. President, there must
have been some thought of establish­
ing such a department when our bank
was organized, because our corporate
charter provides for trust powers. It’s
true that a small amount of trust
service is performed by our officers
on a personal basis, but we can im­
prove that service by staffing a de­
partment for that purpose. There are
many reasons why a corporate fiduci­
ary is more satisfactory than an in­
dividual. These reasons are of impor­
tance whether applied to a bank officer
or some other individual.

mation required are easily prepared
from records maintained in a trust
department. Some duties are com­
mon to all trust services, while others
are individual in their application. It
is for these services that we will be
paid, and it should not be long before
we are on a profitable basis. At first,
our salary costs and other overhead
items of expense will be exceptionally
high in proportion to our income, but
the more use we make of our depart­
ment, the sooner it will become self
supporting. Just think of all the serv­
ices we can offer—escrow, trust, guar­
dianship, estate, custodianship, agen­
cy and safekeeping.

W

P erm anen ce

Consider first the quality of per­
formance. If an individual acting as
a fiduciary becomes incapacitated for
any reason, it becomes necessary to
appoint a successor. This results in
additional expense for the work in­
volved in filing final reports for the
predecessor. There may also be loss
resulting from lack of continuity in
the administration of the fiduciary
duties. There is the classic example
of the man who named one of his
three brothers as his executor. Be­
fore administration of the estate was
completed, the executor died and an­
other brother was appointed. He also
died and the fourth brother was ap­
pointed. The series of appointments
and deaths ended with the appoint­
ment of a bank to administer the
estate of the fourth brother, and com­
plete the closing of the other estates.
Much of the expense incurred could
have been saved if the bank had been
nominated in the first place. The fee
paid for the bank services would have
been small by comparison.
The bank is also free from family

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Federal Reserve Bank of St. Louis

E s c r o w S e rv ic e

S. G. B A R N A R D
“ Several points must be ca refu lly con sid ered ”

pressure. Even though the individ­
ual fiduciary may be discharging his
duties to the best of his ability, he
may be accused of partiality. It would
not be too surprising if the accusation
were justified, for it is often difficult
for the individual to avoid coloring
his decisions with the product of per­
sonal relationship. To this extent, a
bank is impersonal. It has no inter­
est but to discharge its duties impar­
tially. There is the further safeguard
of counsel from the trust committee
and board of directors. Thus we have
the advantage of group decision rath­
er than that of one person. This com­
posite determination of procedure is
an advantage over the personal ad­
ministration by one who may be com­
pletely inexperienced in such matters.
Fid u ciary R e la t io n s h ip

A well organized trust department
would also be equipped to offer its
services in all types of fiduciary rela­
tionship. Reports, statements, tax re­
turns and all other returns of infor­

The use of escrow service provides
in many instances the only completely
satisfactory solution to a business
problem. Take, for instance, the case
of the man who wanted to have a
new heating system installed in his
home. The supplier where he could
make the best deal wanted to be quite
certain that he would be paid prompt­
ly upon completion of the job. On the
other hand, the purchaser wanted to
protect himself by paying only for a
satisfactory installation. Both parties
were protected by payment of the in­
stallation cost to a bank as escrow
agent. The escrow agreement pro­
vided for payment of the funds upon
receipt by the bank of a certificate
from the city inspector approving the
job. Thus the purchaser was assured
of satisfaction and the supplier was
sure of receiving payment promptly
upon completion. For its services as
escrow agent the bank was paid a fee
based upon the amount involved. Es­
crow fees may vary from 1 to 2 per
cent of the principal amount, depend­
ing upon the work involved and the
degree of responsibility imposed upon
the bank. We may be paid on an
annual basis if the escrow runs for
longer than a year, and we should
TRUST . . .

(Turn to page 38, please)
Northwestern Banker, May, 1954

22

f f oit* f W ou ld Spoil d u $ 1 .0 0 0

A d vertisin g ttudget in u Sum Ii ituuk
A d v e r t is in g M a n a g e r s fro m L a rg e r B a n ks
W o u ld Se le ct Lo ca l N e w s p a p e r First
A N O RT HW ESTERN BANKER
Survey

F YOU were responsible for the ad­
vertising program for a small coun­
try bank and had a budget of $1,000
per year, how would you make the
most effective use of it?”
This question was sent to advertis­
ing managers of several large midwestern hanks by the N orthwestern
B anker to find out what their ideas
would he if they were in the situation
posed by the question. Naturally,
there was a diversification of ideas,
with use of local newspaper men­
tioned most frequently.
One point of great interest, how­
ever, was the unanimous opinion ex­
pressed in various ways that the budg­
et should be expended in a manner
which would personalize the bank
with its customers and the commu­
nity.
Here are the interesting answers re­
ceived in this survey:

I

H E N R Y L. B U C C E L L O
Advertising M a n a g er
Bank of America
San Francisco, C a lif orn ia

Presumably by a small town we
are talking about 3,000 people. Such

H E N R Y L. B U C C E L L O
“ . . . one ad each week in the new spaper . . .”

Banker, May, 1954
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Federal Reserve Bank of St. Louis

a town would probably have a weekly
newspaper with a circulation of about
2,000 and an inch rate of about 75
cents. These assumptions are based
on our own experience with many
small towns and many weekly papers
here in California.
With these few assumptions, I
would place one ad each week, size
two columns by ten inches, in the
newspaper. I would devote this space
to selling bank services and to occa­
sional institutional messages regard­
ing my bank, public events, and vari­
ous holiday greetings, for I know
that these ads would be read by prac­
tically the entire population of my
market. The layouts would, of course,
be simple and probably standardized
in some attractive manner so that
production costs would be negligible.
This consistent year ’round newspa­
per campaign would not only develop
immediate business for the bank, but
would do a basic public relations job
and make a friend of the local news­
paper publisher. The cost of doing
this would be about $800.
In a community of 3,000 population,
according to U. S. birth rate figures,
you probably have about 70 babies
born each year. I believe I would
present each new-born infant with a
savings account started with $1. This
would develop a great deal of friendly
sentiment toward the bank, create
good word-of-mouth advertising and
would enable me to get my bank’s
name in the “personal” column of the
paper about 70 times a year. Many
of these $1 savings accounts would
develop new business, many would
probably lie dormant for a long time
and a few, of course, would be drawn
out. This would add about $70 to
our budget.
The remaining $130 I would use
to buy service leaflets which are syn­
dicated for small country banks by
the American Bankers Association.
Naturally, these would be for overthe-counter use.
That’s about it. Nothing too “dif­
ferent” or experimental could be ven­

tured on a $1,000 budget under the
circumstances which would normally
exist in a small country town.
C. A. H E M M I N G E R
Director of Advertising and
Public Relations
First Natio nal Bank
St. Louis, Miss ou ri

If I were called upon to advise a
small bank with an annual advertis-

C. A. H E M M IN G E R
“ . . . don’ t put all your eggs in one basket . .

ing appropriation of only $1,000 how
to go about spending that money, I
would definitely warn against the
practice of putting all your eggs in
one basket.
The basic program for a bank of
this size, I believe, should encompass
the use of a moderate amount of news­
paper space—provided, of course, that
the community supports a good news­
paper—plus the judicious and econom­
ical use of direct-by-mail material,
such as statement enclosures, person­
alized letters and throw-aways.
If the bank can stretch its $1,000 to
also cover a billboard or two and some
attractive point-of-sale material, so
much the better. If the community

23

v

\

U

B

has a strong radio station and a poor
newspaper, then I would use air
waves instead of newsprint, but not
to the exclusion of direct mail advertising and all other mediums.
The bank’s advertising should, of
course, be merely the background
against which its officers and employes carry on an active program
of in person selling, involving calls
on merchants and farmers and even
house-to-house solicitation of new and
additional business if time permits.
The bank’s physical plant should be
one of its best advertisements. If
the budget does not permit a complete
building modernization program, this
deficiency should be remedied by the
use of a lot of soap and water, wax
and paint to make the interior and
exterior bright, cheerful and inviting.
If the bank relies upon syndicated
advertising material, these should be
adapted and rewritten to fit the bank’s
own needs and those of its customers.
Utilization of syndicated advertis­
ing “the way it comes out of the can”
is to be avoided at all costs. Custom­
ers and prospects can almost infallibly
smell out “store bought” advertising
—and are likely to interpret its use
as indicative of lack of interest and
sincerity on the part of bank man­
agement.
MRS. J A M E S G L E A S O N
Adve rtising Man ager
The Om aha Natio nal Bank
Om aha, N ebrask a

\

\

'

|

■*-

I am assuming that the bank is lo­
cated in a really small town and that
the only newspaper is a county news­
paper published weekly.
It seems to me that in a community
of this size, your best advertising
would be through public relations.
My job would be to create in the
minds of the townsfolk a belief that
the bank is friendly, approachable and
helpful; that it is an easy place to
come to and a pleasant one to visit.
Naturally, the first thing to be done
is to be sure that the people in the
bank actually are friendly and help­
ful. Since most bankers try to be so,
I shall also assume that fact.
My major project would be the es­
tablishment of a monthly news let­
ter. It might be bought already pre­
pared. It might be put together in
the bank. In either case some personal items should be added about
community affairs, local loan rates,
etc., to give it an authentic touch.
These could be mimeographed. It
would be sent to a selected mailing
list composed of customers and pros­
pective customers. Such a list could
readily be obtained from the county
agent or the local Farm Bureau.


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I would use the bank windows for
displays featuring the 4-H groups. In
addition I would present displays of
4-H work in the bank lobby, such
as sewing, home canning, etc. Above
all I would make it known by word
of mouth and through my monthly

the bank and one officer might make
a brief talk about the bank services.
Suggestions would be welcomed from
the guests.
The object would be to make the
customers feel at home and a part of
the community institution. A news­
paper ad would be advisable here to
explain to the public the system by
which the invitations were issued,
since obviously it would be necessary
to divide them in some fashion into
small groups. This would avoid hurt­
ing anyone’s feelings and also pub­
licize the series.
G O R D O N M. M A L E N
Assistant Cashier
A dvertisin g Department
First Natio nal Bank
Minneapolis, Minnesota

M RS. JAM ES G L E A SO N
“ . . . best a dvertising through p u b lic
tions . . .”

rela­

publication that the bank was avail­
able for such displays. This would
cost nothing and would very likely
cause interest, comment and good
will.
With the money left over from the
monthly publication, there are vari­
ous inexpensive media which would
create good will and spread the bank’s
name throughout the community. We
might have the bank’s name imprint­
ed on paper napkins and give them
out free for use at church dinners,
socials, picnics, etc. We might buy
a quantity of lollypops to be given to
children who come to the bank with
their parents. We might purchase a
quantity of paper or plastic covers
for school books imprinted with the
bank’s name for distribution at the
beginning of school each year.
If I had any money left I would
buy a medium priced camera. I
would take pictures of 4-H groups,
county agents and other activities of
general community interest to be used
in our lobby and windows displays.
There is a tremendous amount of
good will to be obtained through this
medium.
I think it might be a good idea to
invite our customers to a series of
open houses. They would be held in
the evening from 7:00 to 9:00, and cof­
fee and doughnuts or cake would be
served. The officers and their wives
would greet the guests, show them

At the outset I should like to em­
phasize that any bank’s advertising
program should be keyed to its par­
ticular local situation and problems.
With this in mind my first step would
be to very carefully research every
aspect of the bank’s advertising needs
and also the community’s business
potential.
It seems probable that a bank with
a $1,000 annual advertising budget
most likely would be located in a com­
munity not large enough to support
a radio station. This then would mean
that the local newspaper undoubtedly
would be the most effective advertis-

G O RD O N M. M A LE N
“ . . . bank’ s a dvertising program should
keyed to its p articular lo ca l situation . . .”

be

ing medium available. The paper’s
rates would determine how much ad­
vertising could be done, but I cer­
tainly would try my best to work out
either a weekly or a bi-weekly sched­
ule of advertisements.
So that the ads would be different
HOW 1 WOULD . . .

(Turn to page 46, please)
Northwestern Banker, May, 1954

24

4

r
tta n k v v s

Y

W illiam G eorge
B ru m d er
President
First Wisconsin National Bank
Milwaukee, Wisconsin
. . member of a family which has been active
in banking affairs for more than 90 years.”
I L L IA M G E O R G E B R U M D E R ,
president and board chairman
of the First W isconsin National Bank,
M ilw aukee, W isconsin, is a m em ber
of a fam ily w hich lias been active in
civic and banking affairs for more
than 90 years. H is father, W illia m C.
B rum der, was a president of the for­
m er N ational Bank of Com m erce in
M ilw aukee, as was his paternal grand­
father, George Brum der. His m ater­
nal grandfather, August U ihlein, was
a president of the form er Second
W a rd Savings B ank o f that city.
M r. Brum der follow ed the fam ily
tradition when he began his career in
1928 as a bank teller, but this was not
until he had received a fine education­
al foundation for his chosen field. H e
attended high school at the M ilw aukee
University School, and later was grad­
uated from H otchkiss School, Lake­
ville, Connecticut, in 1920. That same
year he enrolled at Princeton Univer­
sity, from which he received a B.S.
degree in economics in 1924. He then
attended Harvard Business School for
two years of graduate work before re­
ceiving his m aster’s degree in banking
and finance.
H is school activities are of special
interest. In 1917, W illia m Brum der
held the high ju m p record at the M il­
waukee University School. He later

W

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repeated his success, holding the rec­
ord in 1919 and 1920 at the Hotchkiss
School. H e was a m em ber of the
Princeton-Cornell track team which
met the O xford-C am bridge team in
1921. Other school activities include
m em bership in the Cottage Club at
Princeton and the Stapler Club at
Harvard Business School.
In 1928, M r. Brum der joined the
First W isconsin N ational Bank, and
worked in a variety of jobs including
one and one-half years with the W is ­
consin Bankshares Corporation. In
1931, he was m ade part of the loaning
division of that bank, and one year
later was elected an assistant cashier.
M r. Brum der then m oved through
a series of prom otions in the bank
which included positions as assistant
vice president, vice president and, in
1949, senior vice president.
In 1950, M r. Brum der was elected
chairm an of the board of the First
W isconsin National Bank, and in 1954
was m ade president.
M r. B rum der took tim e off from his
banking duties on A p r il 28, 1934, to
marry June Johnston. Th e Brum der
fam ily now includes four girls and
two bo ys: June E llen, 1 9 ; W illia m ,
1 7 ; V alerie, 1 6 ; H erm an, 1 3 ; Cecelie,
9. and Christina, 5.

T
In spite of his heavy schedule at
the bank, M r. Brum der still finds
tim e to pursue his hobbies of skiing,
tennis and golf, which his friends say,
“ he tackles with the same enthusiastic
approach he applies in running the
bank.” He is also an avid traveler,
having m ade five trips to Europe. In
1926 and 1927, he traveled around the
world spending nearly a year in the
Far East.
In describing W illia m Brum der,
one associate said that lie believed
that all officers and staff m em bers
who are associated with h im in the
bank would sum up descriptions of
him som ething like th is: “ H e certain­
ly is a w orking president who arrives
at his office early in the m orning and
attempts to m ake h im self available to
the staff and the public throughout
the day. A lm o st every day he has
meetings scheduled up to and after
five o ’clock. A fter the meetings comes
his routine office work— dictation and
planning. It is not uncom m on to see
the lights burning in his office as late
as 10 and 11 o ’clock at night. A l ­
though the bank is not open for busi­
ness on Saturday, the guards on duty
are never surprised to see B ill Bruin-

BRUMDER . . .

(Turn to page 36. please)

^

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

\

The Lamplighter
Qnce a familiar figure in the town, but long since
forgotten, was the lamplighter making his evening
rounds. Gas was turned on in Omaha for the first time
February 1, 1869. The ordinance governing street
lighting provided that "The public lamps shall be lighted
and extinguished according to the rising and setting
o f the sun and m oon.” The lamplighter
received a salary o f $40 a month.
One hundred years brings many changes. Gone, with the
steamboat — the horse and buggy — the cracker barrel
— is the lamplighter with his pole and torch.
Today the city o f Omaha celebrates its 100th birthday.
Chartered when the city was 12 years old.
The Omaha National Bank is proud o f the part
it has played in the building o f a city.

Helping Omaha Croie Since 1866

O ne o f (l Series

Member Federal Deposit Insurance Corporation,

Northwestern Banker, May, 1954

26

P ro g ra m Effective
Manufacturers
Trust
Company,
New York, has put into effect its new
retirement program for officers and
employes of its correspondent banks,
Horace C. Flanigan, president, an­
nounced.
In a letter to the Company’s more
than 2,200 domestic correspondent
banks, located in every state of the
Union, Mr. Flanigan sent a 51-page
booklet containing technical informa­
tion designed to assist the individual
bank in formulating its own pension
plan, including a suggested “model
plan” and drafts of trust agreements
to carry it into effect.

Carl A. Birdsall, president, Conti­
nental Illinois National Bank and
Trust Company, Chicago, was appoint­
ed treasurer by the new board of

N a m e d V ic e P re sid e n t

R e se rv e C ity
R.
Crosby Kemper, president of the
City National Bank and Trust Com­
pany of Kansas City, was elected pres­
ident of the Reserve City Bankers
Association at the 43rd annual meet­
ing at Boca Raton, Florida, last
month. Mr. Kemper succeeds George
S. Eccles, president of the First Secu­
rity Bank of Utah, Salt Lake City.
R. C R O S B Y K E M P E R
Elected vice president was Frank
N ew ly elected president of
R eserve C ity Bankers A ssocia tion
W. Norris, president, Barnett Nation­
al Bank, Jacksonville, Florida, to suc­ directors. Retiring treasurer is Wil­
ceed Paul E. Hoover, president, Anglo liam Taylor, First Wisconsin National
California National Bank, San Fran­ Bank, Milwaukee.
Four new directors were elected as
cisco.

♦ ../ ¿ ¿ m

follows: Henry C. Alexander, presi­
dent, J. P. Morgan & Company, Inc.,
New York City; G. Carlton Hill, vice
president, Fifth Third Union Trust
Company, Cincinnati; James D. Robin­
son, Jr., chairman, First National, At­
lanta, and James E. Shelton, presi­
dent, Security-First National Bank,
Los Angeles.

S.
Sloan Colt, president of Bankers
Trust Company, New York, an­
nounced the election of M. E. Gevers
as vice president of the Bank. Mr.
Gevers has been an assistant vice
president since 1949.
Born and educated in Europe, Mr.
Gevers joined the staff of Bankers
Trust Company in 1932. His career
with the bank has been with the For­
eign Division.

O n In su ra n c e B o a rd
Kenneth V. Zwiener, vice president
and director, Harris Trust and Sav­
ings Bank in Chicago, was elected to
the boards of directors of Continental
Casualty and Assurance Companies,
Chicago, at the annual meetings of the
two companies. The announcement
was made by Roy Tuchbreiter, presi­
dent of both companies.

s y s s w
W

4

I*rovide your Chicago accounts with the complete

GOOD

facilities... prompt attention.. .and efficient serv­
ice o f an outstanding financial institution. Our

HANDS

extensive services are at your immediate disposal.

Cit y N ational B ank
AND TRUST COMPANY o f C h icago
2 0 8

S O U T H

estern Banker, May, 1954
Digitized forNorthw
FRASER
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

L A

S A L L E

S T R E E T

( Member Federal Deposit Insurance Corporation)

,. ..

27

Most direct route between YOU

Vi

...and anywhere in California!
N o red tape—no costly delays—when you use Bank o f America’s state­
wide system o f 543 branches for the direct routing o f collection and
remittance items. Cash letters may be sent directly to any one o f the 330
California communities in which this bank is located and your account
credited the same day they are received. This reduces float. It also means
rejected items, returned directly by the branch, reach you days ahead of
items traveling through usual channels. To inquire about this unique
correspondent service, write Corporation and Bank Relations Depart­
ment, Bank o f America, 300 Montgomery Street, San Francisco or 660
South Spring Street, Los Angeles.

tÁ z


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

¿/ u ct,

—

Mmtk of America
NATIONAL JXftVSS ASSOCIATION
MEMBER

FEDERAL

DEPOSIT

INSURANCE

CORPORATION

ft
Northwestern Banker, May, 1954

28

A n n u a l C o n fe re n c e
The annual conference of the Douglas-Guardian Warehouse Corporation
was held recently in New Orleans. The
meeting was under the direction of
John J. Voelkel, Jr., president, Henry
F. Scherer, executive vice president,
and Neil A. Bryning, vice president
and general manager.
Officials of the fifteen offices
throughout the country were in at­
tendance, among whom were Don C.
Dickinson, of the Portland, Oregon,
office and J. Kay Simpson of the Chi­
cago office. The four-day conference
was built around the proper protec­

tion due and given the receipt holder
while rendering a better service to an
ever-increasing number of accounts.
Discussions were headed by the cor­
poration’s general counsel, insurance
consultant and certified public ac­
countants, as well as the executive
management.
The next conference is tentatively
scheduled for the month of March,
1955, at San Francisco, California.

ment of City National Bank and Trust
Company, Kansas City, Missouri.
Mr. Ellis has been in banking since
1941, with the exception of service in
the U. S. Army Air Corps from 1942
to 1945. He was with City National
r l

S p e c ia l R e p re se n ta tiv e
Melvin D. Ellis of Clinton, Missouri,
has been appointed special representa­
tive in the correspondent bank depart­

Get

M E L V I N D . E L L IS
In Kansas C ity Bank

in its collateral department from 1946
to 1948, then became assistant national
bank examiner for the Tenth Federal
Reserve District. Mr. Ellis later was
associated with Thornton National
Bank, Nevada, Missouri, and since
1950 has been cashier of the First Na­
tional Bank of Clinton.
Mr. Ellis served on the installment
loan committee of the Missouri Bank­
ers Association during 1951-52.

Se c tio n L e a d e rs
Louis H. Hammerstrom, vice presi­
dent of the Continental Illinois Na­
tional Bank and Trust Company, Chi­
cago, Illinois, and J. F. Kennedy,
president of the First National Bank
of New Hampton, Iowa, have accepted
appointments as section leaders at the
Wisconsin School of Banking. Mr.
Hammerstrom becomes section lead­
er in the course on commercial bank
administration, while Mr. Kennedy
becomes section leader in the course
on country banking.

It is no coincidence that so many out-of-town
banks rely on American National for correspondent
banking service in Chicago.
They know that we are close to the heart of Chicago
business and industry. They realize that because
we are thoroughly familiar with the hub of the
Midwest, we can offer them many extra services.
If you are not already a correspondent of American
National, why not make use of our day-to-day
contacts and experience in the Chicago area? Call on

D iv id e n d

us for any of your correspondent banking needs.

A m erican ì\«»fiorirti B ank
a n d T ru st
LA S A L L E

wes tern Banker, May, 1954
Digitized forNorth
FRASER
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

C om p a n y

AT W A S H I N G T O N ,

o f

CHICAGO

O iic a c jo
90, I L L I N O I S

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

The board of directors of Investors
Mutual, Inc., largest mutual fund
affiliate of Investors Diversified Serv­
ices, Inc., has declared a quarterly
dividend of 15% cents per share, pay­
able April 21 to shareholders of rec­
ord at the close of business March 31.
The dividend will be distributed out
of the fund’s net investment income,
derived from dividend and interest
income.
>

29

C a ll c o lle c t to C h ic a g o L D 9 2 , 9 3 , 155 o r 313
a n d fin d o u t w h a t w e c a n d o fo r y o u
We do a lot of trading in government bonds for

The officers of our Government Bond Depart­

Savings and Loan customers in the Midwest states.

ment are unusually well equipped — in both expe­

And there’ s no reason in the world why we can’t

rience and facilities — to assist you and corporation

do it for any customer in any state. W e ’d like to.

executives with investment programs. As evidence

And we are sure we can bring to new customers

of the wide scope of our operations, during the

the advantages that have made us one of the

past year we had transactions in each of the twelve

country’s largest traders.

Federal Reserve Districts.

Here is a primary market in government secu­

Contact us by telephone, teletype, or telegraph

rities where, under normal market conditions, you

— at our expense. For direct connection, use these

get a direct and immediate bid or offering, and

numbers: Long Distance 92, 93, 155, 313.

rapid-fire trading. Our Government Bond Depart­
ment at The First National Bank of Chicago gives
you all the advantages of modern communications,
streamlined methods, and more than 90 years of
experience in handling bonds — whether your trade

L. F. W interhalter

is in thousands or millions.
We carry a substantial position in treasury bills,
notes, and

G O VER N M EN T BOND DEPARTMENT

other government

issues in which

Asst. Vice-President

Joseph A. Smole

Assistant Cashier

Frank G. H erman

Assistant Cashier

banks and corporations are principally interested.

James B . F organ , Vice-Chairman

E dward E. B rown , Chairman of the Board
H omer J. L ivingston , President
W alter M . H eymann , Executive Vice-President

H arold V . A mberg , Vice-President
G aylord A . Freeman , Jr ., Vice-President

H ugo A . A nderson , Vice-President
H erbert P. Snyder , Vice-President

The First National Bank of Chicago
D e a r b o r n , M o n r o e a n d C l a r k Streets


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

MEMBER

FEDERAL

B u i l d i n g w ith C h i c a g o since 1863
DEPOSIT

INSURANCE

CORPORATION

Northwestern Banker, May, 1954

30

N a m e s N e w O ffic ia ls
The election of Lewis E. Banford
to the board of directors of the Amer­
ican Express Field Warehousing Cor­
poration, is announced by Ralph T.
Reed, president.
Mr. Banford, vice president in
charge of the corporation’s Southern
Division, has been in field warehous­
ing for over 20 years and is a co­
founder of this American Express
subsidiary.
Also appointed to new positions
were Gerard W. Rupprecht, Carroll A.
Oby and Michael W. Casserly. Mr.
Rupprecht was named assistant vice
president. Mr. Oby, also promoted to

assistant vice president, will take
charge of the corporation’s Mid-West
Division with offices in Chicago.

elers check sales promotion, traveling
the entire country.
Mr. Dieball attended the Wharton

To T ra v e l Io w a
Announcement is made by the First
National Bank, Chicago, of the recent
appointment of Raymond V. Dieball
to represent the bank in the corre­
spondent division. He expects to
travel Iowa.
Mr. Dieball started with the First
National in 1927 in the savings de­
partment, worked in several other de­
partments of the bank, including ad­
vertising and public relations, and
more recently was in charge of trav­

R A Y M O N D V . D IE B A L L
W ill travel in Iow a for
F irst N ational Bank o f C hicago

School of Finance, the trust develop­
ment school of Northwestern Uni­
versity, and the American Institute
of Banking.

B an k B u y s B u ild in g

Local, National and WorldW ide Contacts are Yours
Through Commerce Trust
• There is no lim it to the scope
of banking and business contacts
available to you through Kansas
C ity’s oldest and largest bank.

Our com plete knowledge of

local firms and activities . . . our unmatched direct connections

One of Denver’s best known land­
marks, The Central Bank Building at
15th and Arapahoe, formerly owned
by the Evans Investment Company
and leased to the bank, was purchased
last month by The Central Bank and
Trust Company through its Employes’
Pension Fund. It was reported that
the consideration for the nine-story
structure was $550,000 cash plus trade
of the six-lot corner at 15th and Curtis,
owned by the bank’s Employe Pen­
sion Fund since 1951.
Max G. Brooks, Central vice presi­
dent, announced the purchase and in­
dicated that the move was made as
a “stop-gap” measure, to enable the
bank to keep pace with the needs of
the community.” He said that the
present site, with the vacant property
adjacent, lends itself more adequately
to drive-in banking facilities than any.
other currently available property in
downtown Denver.

throughout the nation . . . our network of hanking contacts in
foreign countries are all proving profitable to m ore and more
correspondent banks. W e are ready to serve you.

(ommercejrust (ompany9
C^cipitai _J-unJi £*«,J 29 M IL,,
KANSAS CITY’S OLDEST AND LARGEST BANK
Established i o b b
Northwestern Banker, May, 7954


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

ME MBE R FEDERAL DEPOSI T

in su ran ce

corpo ration

To E x p a n d Q u a rt e rs
John C. Wright, president of La
Salle National Bank, Chicago, has an­
nounced the acquisition of additional
space on the second floor of the Field
Building. The new area, located on
the La Salle-Adams Streets corner of
the building, will add more than 6,700
square feet of space. The total area
then occupied by the bank will ex­
ceed 47,000 square feet.

31

here’ s only one answer to

for out-of-tow n banks is the

other securities and submit spe­

that, any N ew Y ork er w ill

handling o f security transac­

cific suggestions and recom ­

tell you. W all Street begins at

tions— deliveries, receipts, pay­

mendations.

lo w e r Broadway directly across

ments, transfers, registrations—

from o ld Trinity Church.

all the exacting details co n ­

When you need “ W all Street”

nected with purchases and sales.

services why don't you talk to the

T

But to many an out-oj-toivn
banker, W all Street, with all the
financial facilities and services
its name suggests, begins with a
telephone call, a wire or a letter
to the Chase National Bank*

And one o f Chase’s most valu­
able services for correspondents
is the study and analysis o f a
bank’s ow n investment port­
fo lio . By mail o r in personal
consultation

Chase

w ill

ap­

, O ne o f the m ost convenient

praise a correspondent’ s h old ­

o f Chase’ s W all Street services

ings o f U. S. Governm ent and

*Chase stands first in relationships with other banks throughout the country. Almost half of
the U. S. banks which maintain New York banking connections have selected the Chase National.


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

people at Chase?

THE

Ghase
N A T I O N A L

B A N K

OF T H E C I T Y OF N E W Y O R K
H EA D O F F fC E : Pine Street corner o f N assau
Member Federal Deposit Insurance Corporation

Northwestern Banker, May, 1954

32

le ^ettcA c

A m erican Trust R eaches a i 'entu ry

M -K ADJUSTO
TRAY-BINDERS
and H i-Lo STANDS

j

Y

TOP OFFICERS— Seated around the table are the president and the senior vice presi­
dents of the American Trust Company of San Francisco. From left to right they are
Harris C. Kirk, John C. Bovey, President James K. Lochead, William A. Marcus, Dwight
W. Chapman, and Ransom M. Cook.
r

m e r ic a n

SORTERS

trust

com pany,

A San Francisco, on April 27 had
its name added to the nation’s coveted
list of century-old banks.

SAVE TIME
SAVE WORK
SAVE SPACE

The bank, whose 83 officers serve
43 Northern California cities, was
founded on April 27, 1854, as the San
Francisco Accumulating Fund As­
sociation. Over the span of 100 years
American Trust Company has grown
from one part-time employee to a staff
of over 3,000—its deposits from $31,000
in 1854 to $1,197,700,000 in 1954.

.W

STEEL BANK
and OFFICE UNITS
to fit your needs
and space.
Tray housing
counter units, tell­
er units, account­
ing machine desks,
savings tubs, mon­
ey buses, double
capacity files and
cycle billing equip­
ment . . . insulated
if required.

TRAINED REPRESENTATIVES
IN MOST PRINCIPAL CITIES
Complete Line of TrayBinders, Stands, Record
Handling and Housing
Equipment.

/ e TCORPORATION
em u te
W

CEDAR RAPIDS, IO W A
Northwestern
Banker, May, 1954

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

James K. Lochead, president of the
billion-dollar bank, at brief anniver­
sary ceremonies in San Francisco,
stated: “ To our pioneer founders for
their vision in establishing a bank in
troubled times, and to their successors
who have carefully guided the bank’s
destinies through wars, booms and
depressions, we acknowledge a debt
of gratitude. Over the century Amer­
ican Trust Company, with ever-ex­
panding opportunities for banking
service, has grown and prospered with
Northern California. Our second cen­
tury will be characterized by adher­
ence to the same principle of building
solid foundations for the future of the
communities it is our privilege to
serve.”
The bank’s vaults still hold a copy
of its historic constitution, appropri­
ately inscribed: “Adopted April 27,
1854.” The original document is a
colorful combination of 1854 verbiage
and telegraphic brevity. Depositors,
then called “members,” agreed upon
opening their accounts, to make regu­
lar monthly deposits. They were
further notified that loanable funds
would be available to members only—

all loans to be adequately secured by
real property.
Although business conditions were
far from ideal, the pioneer thrift in­
stitution prospered from the begin­
ning. In 1857, in order to widen the
scope of its banking service, the Fund
became the Savings and Loan Society.
The Society was the first bank to be
incorporated in California. E. W.
Burr served both as president of the
original Accumulating Fund and the
succeeding Society. Burr was presi­
dent of the bank for two decades.
In 1857 the second location of what
is today the nation’s eighteenth larg­
est bank was at 171% Washington
Street, present site of San Francisco’s
Hall of Justice.
Outgrowing its second-floor quar­
ters, the Savings and Loan Society in
1861 moved to its own building at 169
Clay Street, adjacent to the first San
Francisco Mint, where it became
known to two generations of San
Franciscans as “The Clay Street
Bank.”
The name American Trust Com­
pany came into being in 1927 and re­
flects a series of consolidations and
acquisitions of prominent banking
institutions throughout Northern Cali­
fornia.
In summarizing his views on the
bank’s centenary, Mr. Lochead stated:
“American Trust Company now be­
gins its second hundred years of bank­
ing service to Northern California and
the people who make it great. In an
era of phenomenal scientific and tech­
nological progress we are doubly for­
tunate to serve an area blessed with
an enviable share of natural re­
sources.”—End

Y

V

\

A.

i

33

Dollars,
Harks,
Francs, Pesos,
Lire, Veil...
I'iiiiiiiIs,

let our Foreign D epartm ent
be your Foreign D epartm ent
T h e Continental Illinois Foreign
Department enables you to extend helpful
services to your customers.
YOU C A N • m ake remittances to foreign points by draft,
m ail, or cable
• collect drafts, checks, and other items
payable in foreign countries
• purchase and sell foreign currency and
exchange
• issue letters o f credit for financing im ports
• supply safe, convenient travel funds for
persons g o in g abroad
• give inform ation and advice on foreign trade
and foreign banking
• furnish credit and investment inform ation

It’s easy for you to m ake our Foreign
Department your Foreign Department.
W e’ll be glad to send com plete inform ation.

Continental Illinois National Bank


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

and Trust Company of Chicago
LaSalle, Jackson, C lark and Quincy Streets

LOCK

BOX

H, C H IC A G O

90, IL L IN O IS

M ember Federal Deposit Insurance Corporation

Northwestern Banker, M a y , 1954

34

H e a d s St. L o u is Bank
Kenton R. Cravens was elected
president and a director of Mercantile
Trust Company at a meeting of the
bank’s board of directors as an­
nounced by Sidney Maestre, board
chairman. He succeeds Gale F. John-

istrator of the Reconstruction Finance
Corporation was accepted by Presi­
dent Eisenhower on March 31. He
took office as administrator on May 1,
1953.
He joined the Mercantile-Commerce
Bank and Trust Company (now the
Mercantile Trust Company) in 1943
as vice president in charge of the
banking loan division.
He entered the banking field in 1933
as vice president of the Cleveland
Trust Company, Cleveland, Ohio.

in progress at the Farmers and Mer­
chants National Bank of Los Angeles.
It will give Los Angeles not only the
largest vault in the west but will as­
sure depositors of a maximum of
safety in the safe-keeping of valuables.
The 24V2 inch thick door is made
of solid steel. The door cavity is filled
with five special metals to make it
especially resistant to fire, drilling and
explosives. A similar door, one-third
as thick, withstood the atomic bomb­
ing of Hiroshima, Japan.

P ro m o tio n s
E. Chester Gersten, president of
The Public National Bank and Trust
Company of New York, announced
the appointment of Benjamin Sloan,
assistant cashier, as assistant vice
president, and of Harold Messerschmitt, administrative assistant, as
an assistant cashier.

W e s t ’s L a r g e s t

K E N T O N R. C R A V E N S
E lected president of
M ercantile T rust Co., St. Louis

ston, president and vice chairman of
the board, who will continue to hold
the office of vice chairman.
Mr. Cravens’ resignation as admin­

The largest modern privately-owned
vault door in Southern California,
weighing nearly 40,000 pounds and
consigned to The Farmers and Mer­
chants National Bank of Los Angeles,
was delivered recently.
Oscar T. Lawler, president, said
that the door will be placed in the
largest privately-owned vault in the
west and is part of the $750,000 build­
ing and modernization program now

INSPECTION— Oscar T. Lawler, presi­
dent of the Farmers and Merchants Na­
tional Bank, Los Angeles, inspects the
20-ton vault door soon to be installed.

ONE
BILLION
DOLLARS
IS STILL
A LOT
OL MONEY!

• Checks drawn on this bank by its customers
during the past year totaled over one billion, two
hundred million dollars. This volume o f business
indicates the complete facilities developed in more than
85 years o f serving thousands o f bankers, farmers
and business men throughout the middle west. Our officers
will be pleased to explain how this long and varied
experience can be made useful to you.

r'j/ie

LIVE STOCK
BANK
<2/

tA fi/t'ona/

(Established 1868)

David H. Reimers, President
Member Federal Deposit Insurance Corporation

Digitized for
N oFRASER
r t h w e s t e r n B a n k e r . M a y , 1954
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

U N IO N S T O C K Y A R D S

35

W h i c h m a n is the B a n k e r ?

\y.

Attempting to identify a banker by looks or dress is impossible. Like
any other successful business man, his distinguishing characteristic
is not his appearance but round-the-clock striving to provide his
customers with the finest service possible. An important part of
any bank’s service is careful consideration of the kind and quality
of the checks it supplies to its customers. Thousands of bankers have
found that the safety and fine appearance of checks lithographed on
La Monte Safety Papers earn approval from the most discriminating
customer. W hy not ask your lithographer for samples or . . . write
us direct.
A Check Paper All Your Oivn
Thousands of banks and many of the larger corporations use La M onte
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itself. Such

in d iv id u a l iz e d

check paper provides maximum protection

against both alteration and counterfeiting—makes identification positive.

THE WAVY LINES ® ARE
A LA MONTE TRADE-MARK


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

S A F E T Y PAPER FOR CHECKS
GEORGE

LA M O N T E

&

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NEW

JERSEY

N orthw estern

Banker, M a y ,

1954

36

B a n k s D e p a rtm e n t S to re
Another break in the usual rigid
mold of bank selling cracked the Sun­
day before Easter in a full page “up­
stairs fashion” ad, run by the First
National Bank and Trust Company of
Tulsa.
Designed to look like a typical preEaster fashion ad for women’s serv­
ices and clothes, the ad featured a
full length drawing of a woman in an
Easter suit, and was departmentalized
like a large store display layout—mil­
linery, home furnishings, accessories,
“for men only,” etc.
Titled “Fashion Firsts for Smart
Tulsans,” a smaller head urges read­

ers to use Tulsa’s “First Department
Store of Banking.”

N a m e d V ice P re sid e n t
Albert Wagenfuehr has been elected
a vice president of First National
Bank in St. Louis. He recently an­
nounced his resignation as chairman
of the executive committee and a
director of Boatman’s National Bank
of St. Louis, and began his new duties
this month.
Generally regarded as one of the na­
tion’s leading authorities in the field
of bank credit, he is a past president
of the St. Louis Association of Credit
Men, served with the local advisory
committee of the Reconstruction

Finance Corporation, and has been
active in the Missouri Bankers Associ­
ation, the American Bankers Associa­
tion, the Association of Reserve City
Bankers, and Robert Morris Associ-

ALBERT W AGENFUEHR
A t F irst N ational, St. L ou is

ates, a national organization of bank
lending officers. He also has been an
instructor in the American Institute
of Banking and the Graduate School
of Banking.
Except for two years with LesserGoldman Cotton Company prior to
World War I, Mr. Wagenfuehr has
been associated with Boatman’s Bank
since 1911. He was elected vice presi­
dent in 1926, a director in 1934 and
chairman of the executive committee
in 1947.

BRUM DER . . .
(Continued from page 24)

W e ’re really quite conventional
We

didn’t invent conventions, but w e’re

rather pleased that someone did. Because not
only

ideas

(and

occasionally

topcoats)

but

also handshakes are com m only exchanged at
these sessions.

It’s always good

to

see old

friends and go back to the bank with a mental
list of new ones. So, w e’ll be seeing you at all
the conventions and sincerely hope that you
come up and see us, too! M ake a point of it,
w o n ’t you?

CITY NATIONAL

Bank & Trust Company

MEMBER FEDERAL D E PO S I T
INSU RANCE CO RPORAT IO N

10 t h a n d G r a n d


N o r t h w e s t e r n B a n k e r , M a y , 1954
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

•

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

der, with coat off, working away
throughout the day.
“ H e has a very inquisitive m ind,
and spends a great deal of tim e read­
ing and studying the reasoning be­
hind m any of the policies and opera­
tions of the bank. H e often conies up
with a well thought out suggestion on
bank details, of which you would
hardly suspect a president of an or­
ganization this size to be aware.’
W h en asked what is the most im ­
portant problem facing bankers to­
day, M r. Brum der replied, “ Cost con­
trol and cost reduction. . . . The wage
factor including pensions and all
other benefits represented 66 per cent
of our expense dollar in 1953. The
proof, clearing and bookkeeping de­
partments represent a high percent­
age of our wage dollar. Cooperation
between banks and larger customers
on some standard type of m echanism
could contribute trem endously to­
ward increased accuracy and m easur­
able wage cost reduction.— T h e End.

37

N ew Mosler Century Bank Vault Door Design
wins coveted awards for Henry Dreyfuss
F a m e d in d u stria l d e s ig n e r receives C itatio n fro m “ P ro g re ss iv e
A rch ite ctu re ’s ” D e s ig n A w a r d s P ro g ra m , a n d H o n o r a b le
M e n tio n from the A rch itectu ral L e a g u e o f N e w Y o rk C ity fo r
d is t in g u is h e d w o r k on n e w M o s le r V a u lt D o o r.

■TH t AfcCUt ♦E C TU R A Ï, LE M il l Is OV N EW VCK'<:
Aft«? Mttrrtc

When Henry Dreyfuss and Mosler engineers began working
together to design and build the new Century Bank Vault Door,
their minds were not concerned with the awards it might win.
Their mutual purpose was to create a bank vault door of such
modern, massive beauty and advanced security that it would
become the symbol of the “ bank of tomorrow,” and add new
impetus to Am erica’s trend toward bank modernization.
That M r. Dreyfuss has received these notable awards for his
part in the project is evidence that both M r. Dreyfuss and Mosler’s
engineering staff have succeeded in their primary purpose.
It is evidence, too, of the leadership which Mosler has always
provided in the field of bank protective equipment. And will
continue to provide.
IF IT ’S M O S L E R . . . IT ’S S A F E

±

^ M o sle r Safe fer

AW ARD

C IT A T IO N from

"P r o g r e s s iv e A rch itec­
tu re” D e sig n A w a r d s
P ro gra m — 1 9 5 4

H O N O R A B L E M E N T IO N
from The Architectural
L e a g u e o f N e w Y o r k C ity

World's largest builders o f safes and bank vaults . . . Mosler built the U.S. Gold Storage Vaults
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https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

N arthwestern Banker, May, 1954

38

each customer the type of trust indi­
cated by the available data.

Hinr a Trust
t an tarrease Voar Earninqs

G u a r d ia n s h ip s

(Continued from page 21)
establish a minimum of reasonable
amount, say $20 or $25.

will be about the same for either a
living or testamentary trust.

K in d s o f T rusts

Life In su ran c e Trusts

There are many kinds of trusts.
They may be revocable or irrevocable,
living or testamentary. A man may
establish a trust for the benefit of
any member of his family, including
himself. If the trust is to continue
after his death it affords the grantor
an opportunity to observe during his
lifetime how his property will be han­
dled after he is gone. If the one who
establishes the trust reserves the right
to revoke it, he can terminate the
trust if for any reason he is dissatis­
fied. Whether revocable or irrevoc­
able, our fees for living trusts would
be established by the agreement—not
as a set figure but probably as “reassonable compensation for services.”
An annual fee of one-half per cent
of the trust corpus is appropriate in
many cases, while for other accounts
an adjustment up or down will be
made, taking into account the amount
of work involved. It isn’t possible to
determine in advance what work will
be required in an account, so the for­
mula for calculating fees will prob­
ably be established for each account
after a year’s experience. Testamen­
tary trusts are established by the will
of a decedent, and are established
after the estate is closed. In such
cases we will be required to make
annual reports to the court, and our
fees will be allowed at the time our
reports are filed. Our compensation

Life insurance trusts will offer to
our customers an opportunity to pro­
vide for more flexible disposition of
insurance proceeds than they could
obtain by any choice of settlement
option. These trusts afford to the
beneficiaries the advantages of lump
sum payment, and at the same time
absorb the responsibilities involved in
the care and investment of funds.
The trust agreement may contain all
necessary provisions for future emer­
gencies of the income beneficiaries,
with directions for disposition of the
trust principal at some determined or
determinable date in the future. Our
fees will be based on the amount of
proceeds distributed, if that is our
only duty. A fee of 1 per cent would be
reasonable. If the trust continues for
several years our fees would be sim­
ilar to those for any other trust.
Trusts may be established for any
purpose, as long as it is legal. With­
in that limit an individual can arrange
for the fulfillment of any function
or duty he could perform. Each trust
agreement is tailor made to fit the
needs or desires of the one establish­
ing the trust, who may be called set­
tlor, trustor or grantor; the terms are
virtually synonymous. I won’t take
time to itemize and discuss every type
of trust, but we would work with our
customer’s attorney to establish for

Guardianships usually are the least
profitable type of trust work we may
be called upon to perform. Most fre­
quently they involve estates of very
modest size, and quite often we will
be unable to make a charge for our
services which will compensate us
adequately for our time and efforts.
Although we are aware of these facts
we will from time to time serve as
guardian of the property of a minor
or incompetent. We do have a cer­
tain responsibility to our customers
and the public in general, and we will
to some extent discharge that respon­
sibility by consenting to serve as
guardian when asked. Our power and
authority is subject to control by law,
and our fees will be such as allowed
by court. In ordinary guardianships
our fees would probably be 5 per cent
of income, with no charge against the
corpus of the guardianship estate. We
may apply for reasonable additional
fees, for the performance of extraor­
dinary duties.
A d m in i s t r a t i o n o f E state s

Administration of estates is prob­
ably the most remunerative field in
which we can expend our efforts. The
duties we will perform are partly dic­
tated by law, and partly by the char­
acteristics of the individual estate.
Several reports are required for every
estate, while others are made neces­
sary by the size of the estate or some
action or lack of action on the part
of the decedent. Normal administra­
tion of an estate may be for any pe­
riod from six months to a matter of
two or three years. Some estates
TRUST. . .

(Turn to page 40, please)

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Digitized forNorthwestern
FRASER
Banker. May, 1954
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

IAFGFR MANUFACTURING CO.

w

Li

Mm 1 1

8th an d Vine, D es M o in e s 9, I o w a

39

r;~'

WHAT DO THESE
HAVE IN COM M ON ?
■ » (
" WBhi
f|

f
«H

a

J

ggäh

'-ä

They are both good collateral when secured
by a LAWRENCE FIELD WAREHOUSE RECEIPT
$ 1 ,000,000 at each of the more than 2500

A n d not only are steel and grain prime se­
curity but so are countless other commodities

Lawrence

when covered by a Lawrence receipt. Bank

comprehensive coverage affords unsurpassed

officers throughout the United States, Canada

security for banks and other receipt holders.

field

warehouse

locations.

Such

and M exico recommend inventory loans se­

Consider, too, Lawrence facility — typified

cured this way since each Lawrence W a re­

by the exclusive L a w ren ce-IB M Com m odity

house receipt is backed by the integrity of

Collateral Report for loan officers. Electron­

the Lawrence Warehouse Company.

ically compiled, this record keeps the banker

In addition, each Lawrence receipt is backed

always up to date on inventory values, while

by legal liability and fidelity bonds totaling

reducing the cost of servicing comm odity loans.

LAWRENCE O N

/ I awrenceX
V System )

W A R E H O U S E REC EIPT S

. . . I S LI K E CERTIFIED O N C H E C K S

Iawrence WapÆHOUSE (OMPANY
*—

--------------------------------------------- N


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

A T IO N W ID E

F IE L D

W A R E H O U S IN G

3 7 Drumm Street, Sa n Francisco, C a lifo rn ia
100 N. La Salle St., C h ic a g o 2, III.
O F F I C E S

IN

•

7 9 W a ll Street, N e w York 5, N. Y.

P R I N C I P A L

C I T I E S

Northwestern Banker, May, 1954

40

T R U S T . ..
(Continued from page 38)
may require even longer, but these
are usually the subject of litigation or
some other unusual action. For an
ordinary administration our fees are
allowed by statute at approximately 2
per cent of the value of property pass­
ing under the will. Any additional
fees would be based on unusual serv­
ices, and subject to allowance by
court. If we assume our work as
executor or administrator is about the
same as that involved in a trust of
similar size, you can readily see our
estate fee would be equal to four
years trust fee. Our service in the
administration of an estate may also
lead to future business in the form
of trusts for beneficiaries, or the will
may establish a testamentary trust.
Occasionally we may be asked to
serve as custodian of assets distrib­
uted to some one who prefers not to
maintain the necessary accounting
records.
C u s t o d ia n Duties

Our duties as custodian would be
very similar to those we would have
as trustee. Our authority would be
given to us by a letter of instructions,
which would be subject to amendment
or revocation at the pleasure of our
customer. We would probably buy
and sell upon individual, specific in­
structions from our principal, and
would accumulate or distribute in­
come in accordance with his instruc­
tions. Appropriate records would be
kept of all activity in the account,

Valley Bank Office
s e r v i n g the area!

ARIZONA’S STATEWIDE BANK
MEMBER

FEDERAL

D EPO SIT

IN SUR AN C E C O R PO R ATIO N

Digitized forNorthwestern
FRASER
Banker, May, 1954
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

and maintain a trust department.
There is no bank in town presently
offering the services of a trust depart­
ment, so we will not face any local
competition at the outset of our new
endeavor. I have checked the sur­
rounding territory and find that the
nearest bank with an active trust de­
partment is 40 miles away, which
means we have an area of operation
with a diameter of approximately 80
miles. Within such a boundary there
should be enough people who are po­
tential trust customers to give our
venture a favorable outlook.
We should also give thought to the
physical and personal requirements of
such a department. The minimum
staff would be an officer and a sec­
retary, who at first would share be­
tween them all of the many varied
duties of a trust department. These
individuals should be definitely as­
signed to the trust department, and
not expected to continue in their pres­
ent jobs with the trust work as just
an added responsibility. It’s true
they may have time to assist in other
bank work, but the work of develop­
ing our trust business should be of
primary importance. It may be nec­
essary to hire replacements for those
who are transferred within the bank.
Possibly a short period of time spent
with one of our correspondents would
be helpful in getting our trust officer
off to a good start. From a physical
standpoint, we should decide whether
we have, or can develop, room for a
new department.
We must recognize that our trust
department will not be self-support­
ing immediately after it is first es­
Points to C o n s id e r
tablished. It will take time to get the
There are several points which
accounts on our books, and even after
should be considered carefully, for the
the accounts are opened it will be a
result of their consideration will be
year before we will be paid fees for
of weighty importance in guiding us
our services. We may, in a few in­
to our final decision.
stances, receive a fee for opening an
First of these points is that of po­
account, but the amount received will
tential business. We should attempt
fall far short of salaries and other ex­
to determine what our competition
pense. Duration of the underwriting
will be if we undertake to establish
period will depend on several factors.
Not only will the ability, salesman­
W ill a ttra c t new
ship and energy of our trust officer
accou nts and retain
be important, the support and active
present accounts.
cooperation of our officers and direc­
tors will play a prominent part in
our success, or lack of it.
If the question “ Should we have a
trust department?” is finally deter­
Size 4 'A ,, x4V8
mined in the affirmative, care must
M a d e o f b rillia n t S ty re n e P la s­
be taken to insure that our service
t ic , in c o n tr a stin g co lors.
Fine
will be a credit to the bank, for it
d e ta ils o f a re a l home. M o v a b le g a r a g e d oor,
open w in d o w s, fla g sto n e path, ston e w a ll,
would
be worse than foolish to incur
green law n , sh in gle roof, c la p b o a r d sid in g and
additional expense to create an unfa­
other fe atu re s.
P erm an en t c o lo rs — not just
pain t.
H o ld s a p p ro x im a te ly $50 — p riced a s
vorable reputation. Properly admin­
low a s 28c each.
istered, I believe we can perform val­
L A R G E S P A C E F O R IM P R IN T — IN G O L D
S e n d fo r list o f representatives
uable service for our community and
THE
LEE P L A S T I C M P G , C O .
supplement our present income.—
173-175 Lee Ave., Bridgeport, Conn.
End.

and reports made at least annually to
our customer and possibly to his audi­
tor. Title to property held in a cus­
todianship would be retained by the
customer, while in a trust it would be
transferred to the trustee. Our fees
would be established by agreement,
and would be quite similar to those
paid for comparable duties performed
as trustee. The availability of custo­
dian service would be appreciated by
anyone interested in arranging for
care and custody of his property dur­
ing a short period or indefinitely.
Agency accounts are, as you know,
very similar to custodianships, so we
will pass over them lightly. I sup­
pose the chief difference lies in the
fact that an agency would not neces­
sarily entail possession or control of
property. Certainly a custodianship
would include that responsibility. We
are presently holding property for our
customers under very informal ar­
rangements. I suggest we establish
some reasonable rules and fees and
put such service on a definite basis,
and administer it through our trust
department.
The various types of trust services
1 have discussed briefly constitute
only a general list of the varied duties
which may be assumed by our bank
in some fiduciary capacity, and is not
intended to be a complete treatment
of the subject. The comments are
offered as a preliminary reply to your
question, and it may be that a more
comprehensive survey of our possi­
bilities will yield information which
will persuade us to refrain from en­
tering this field of activity.

SAVINGS
SANK

41

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Federal Reserve Bank of St. Louis

B U IL D S C H A R A C T E R

P A R K AVENUE, N E W YO RK
•

B U IL D S B U S IN E S S F O R

F I N A N C IA L

17,

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IN S T IT U T IO N S

Northwestern Banker, May, 1954

42

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Federal Reserve Bank of St. Louis

TRUST COMPANY
165 B R O A D W A Y , N E W Y O R K 15
M e m b e r F e d e r a l D e p o s it In su r a n c e C o r p o r a t io n

43

IN V E S T M E N T S

E m

rer HvtUsvouni Hate

0 'an M van

N ew Era o f E a sy M o

B ig B a n k s R e lu cta n t to M a k e the C h a n g e , But
D ro p p e d the Prim e C o m m e rc ia l L e n d in g Rate
By R A Y M O N D T R I G G E R
Investment Analyst
N ew York City
HE re-establishment of a new era
of easy money for the investment
markets, suggested strongly by
the reduction of the Federal Reserve
Banks’ rediscount rates from 2 to 1%
per cent, has been confirmed by the
action of major New York banks in
dropping the prime commercial lend­
ing rate from 314 to 3 per cent.
The big banks were unwilling to
make the change, not just because of
the resultant shrinkage in loan port­
folio income. The lending officers
could easily show that the loan trend,
with all of its progressive decline
since last fall, was still not unmixed,
and that there was a fair chance that
the downward drift might arrest itself
at any moment.
Further, while business loans at the
end of March were about a half billion
dollars less than a year ago, they were
still more than one billion dollars
greater than in the spring of 1952.
However, with no substantial up­
turn in general business activity vis­
ible, and with banks outside the na­
tion’s financial center bidding aggres­
sively for dwindling business loans,
the big deposit institutions were
forced to yield ground. It is improba­
ble that an upward swingback of the
Federal Reserve rediscount rate or the
prime commercial lending rate will
take place for some time to come, re­
gardless of the trend of business lend­
ing for the foreseeable future.

T

With the big banks thus in plain
retreat on the loan front, it was in­
evitable that a new onset of bullish­
ness would be touched off in the mar­
ket for prime investments. During the
past month or so, yields on all types
of securities except the tax-exempt in­
terest obligations of local government
have undergone substantial decline.
Only the continuing flow of a big vol­
ume of new market borrowings by
local governments and their agencies

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

has prevented the municipal market
from enjoying the price boom, too.
Governm ent M arket

The market for long governments
has been rendered acutely sensitive by
a virtual lack of offerings to balance
out the occasional purchases by public
pension funds of various states and
cities. The result has been to take the
314 s put out last year to a price of
nearly 110, a yield of about 2.70 per
cent to call in 1978. The victory 214s
of 1967-1972, influenced by a similar
market situation, have got up to
100% bid.
In the intermediate section, the
lengthening out of portfolio maturi­
ties by banks and other investors has
created a big demand, too, for Treas­
ury bonds of less than long term. The
new 214 s of 1961 issued during the late
winter rose to 102%. And in the shortdated list, the new 1% per cent cer­
tificates of deposit put out in February
rose to beyond 10014.

This striking rally in prices is bring­
ing on portfolio problems of its own.
Nevertheless, with all its rise in the
late winter and spring, the interme­
diate part of the government market
is still not without attraction for com­
mercial banks anxious to keep fully
invested during a period of shrinking
business lending.
The Treasury’s shift of more than
$11,000,000,000 of short-dated debt into
bonds due in 1961 has tended to brake
somewhat the price advance of govern­
ment bonds due in from five to ten
years. As this is written, bonds in this
maturity group are still yielding from
50 to 60 yield basis percentage points
more than governments due in five
years. This compares with a yield
spread averaging about 30 basis points
in recent years.
In the field of portfolio switches the
2%s of 1957 issued last year have just
passed the time when original acquisi­
tions at 100 could qualify for classifica­
tion as long-term portfolio holding for
Federal tax purposes. While this note
has been selling at a premium of 3%
points above issue price, the corre­
sponding price rises elsewhere in the
Treasury list rule out any opportunity
for an advantageous switch into gov­
ernment obligations of comparable ma­
turity.
However, with the municipal mar­
ket lagging because of the continuing
heavy supply of new issues, holders of
the 2%s are in a position to capitalize
the profit on the Treasury issue as a
long-term gain and to re-invest advan­
tageously into AAA-rated municipals
due in five years at tax-free yields of
from 1% to 1!4 per cent. And if the
re-investment maturity can be ex­
tended to ten years, avail can be made
in the market of Triple-A municipal
yields of up to 114 per cent. In offset,
of course, is the sacrifice in ready mar­
ketability that would go with the liq­
uidation of the Treasury obligation.
Northwestern Banker, May, 1954

Investments

44

A third consideration in the govern­
ment market worth keeping in mind
is that the Treasury, while modifying
the pace of its reconstruction of the
public debt structure, has by no means
given up the idea of a sweeping re­
vamping. This was shown by the

Announcing...
W

e

are

pleased

to

an-

nounce that we have been admitted to m em bership on the

NEW YORK
STOCK EXCHANGE
,

E ffe c tiv e A p r il 1 5

$11,000,000,000 conversion into bonds
not due until 1961, the largest refund­
ing operation ever undertaken by the
Federal Government. So long as the
Treasury is committed to keep stretch­
ing out the debt from short-dated into
intermediate or long-term maturities,
maturing or callable debt likely to be
exchangeable into the longer-dated
Treasury issues will tend to accumu­
late rights values not shared by other
investments of short term. This should
be a continuing consideration for port­
folio interests choosing between certi­
ficates of indebtedness and discount
bills for investment at short term.
The sharp decline in government
yields has been accompanied by a like
movement in corporate bond yields.
With the end of March, however, it
was evident that there had been some
considerable over-pricing of new highgrade corporate bonds by investment
banking syndicates in their anxiety to
replenish depleted inventories in a
bullish market.

1954

N e w - ls s u e C o r p o r a t e s

T. C. HENDERSON
& CO., INC.
E M P IR E BLDG.
PHON E 4-9113
DES M O IN ES, IO W A

Metti bers
New York Stock Exchange
Midwest Stock Exchange

The rich new-issue corporate yields
were brought into relief in February,
when new long-term bonds of Louis­
ville Gas and Electric Company were
offered at a yield of 3 per cent. Sub­
sequently, the new AA-rated bonds of
Pacific Gas and Electric Company,
which have been in big market supply
in the post-war period, were sold at a
yield of 3.07 per cent.
Thereupon u n d e r w r ite r s went
sharply through a 3 per cent basis in
pricing new bonds of Houston Light­
ing and Power Company, a choice
credit not in market supply. The Hous­
ton bonds were priced to yield 2.90

H . Gerald Nordberg
Representative

Dean W itter & Co.
Members New York Stock Exchange
and other Principal Exchanges

111 West M onroe Street
C H IC A G O 3, IL L IN O IS
Tel. FR-2-0251

SAN FRANCISCO

• NEW YORK

Northwestern Banker, May, 1954


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

• BOSTON

• LOS ANGELES

per cent, but they did not sell and
were later absorbed in free-market
trading at a yield of about 2.97 per
cent.
Detroit Edison mortgage obligations
were priced to yield 2.91 per cent, and
new like-rated bonds of San Diego Gas
and Electric Company at a yield of
2.93 per cent. Institutional investors
resisted these yields for weeks.
Meantime, a big build-up of the cor­
porate securities calendar became vis­
ible. Early in April, the Investment
Dealers’ Digest estimated at more
than $600,000,000 the visible supply of
senior corporate securities—bonds and
preferred stocks-—for which market­
ing dates had been appointed. This
prospect will likely give pause to the
corporate market and arrest the move­
ment of yields to lower ground.

Jt

Y

R e fu n d in g Lik ely

Moreover, if the present yield struc­
ture persists in the corporate market,
a wave of refunding is likely to take
place. Refinancing would be specially
tempting to top-ranking public utility
companies which had to incur borrow­
ing costs of up to 414 per cent in sell­
ing about $400,000,000 of bonds in the
heavily-extended m ark et of last
spring. The first of these refundings
was Detroit Edison’s $40,000,000 of
27/8s on March 24. This issue replaced
3%s sold last spring.
Refinancing of this kind, in the final
analysis, produce the investment
funds for absorbing the new bonds,
and, as a consequence, do not tax the
market like new-money borrowing
does. However, investing institutions
holding the 3 7/s per cent and 4 per cent
debt paper of good market names re­
sent having to surrender such invest­
ments within a year of acquiring
them, even if compensated by substan­
tial call premiums.
Such institutions can be counted on
to carry on a stubborn resistance
against the establishment of any lower
yield structure, even if the continued
mounting of investment funds finally
reduces the stand of the investing in­
stitutions to a rear-guard action.—End.

<

'T

<

S to c k E x c h a n g e M e m b e r
T. C. Henderson & Company, Inc.,
established in 1930 in Des Moines, has
announced a membership on the New
York Stock Exchange which makes
them the only resident member firm
in Iowa. The membership, which be­
came effective April 15th, will be in
the name of Theodore C. Henderson,
and his son, Stacey R. Henderson,
will be the allied member.
Mr. Henderson announced Frank
Nowlin, resident manager of Thom­
son & McKinnon Des Moines office
for the past five years, will be associ­
ated with them effective May 3, as

X

Investments
manager of the listed securities de­ agricultural and livestock loan divi­
sion of the Phoenix headquarters,
partment.
T.
C. Henderson and Company, Inc., was named an assistant vice president
has leased additional space on the and assistant to Leslie A. Wood, vice
second floor of the Empire Building to president in charge of the bank’s
take care of their larger facilities over-all credit administration.
T.
C. Basham, assistant cashier,
which will include a board room with
individual booths for their officers was elevated to an assistant vice
presidency in the commercial and in­
dustrial loan division of the bank’s
headquarters staff.

W it h First o f D a lla s
William P. Irving will become as­
sociated with the trust department of
the First National Bank in Dallas,

T . C. H E N D E R S O N
President

Texas, May 1st, as a specialist in prob­
lems of trust and estate accounting
and taxation. His election as an as­
sistant trust officer and assistant cash­
ier of First National has been an­
nounced by Ben H. Wooten, president.

1955 M e e tin g
H. L. Pullen, assistant vice presi­
dent of the First National Bank and
Trust Company, and first vice presi­
dent of the Tulsa Sales Executive
club, recently announced that the 25th
annual Southwestern Sales Execu­
tives conference will meet in Tulsa
in 1955.

STACEY H ENDERSON
Secretary

and account executives for private
consultation with their clients.
Associated with the T. C. Hender­
son and Company, Inc., are: Eli A.
Petersen, vice president and sales
manager; G. D. Kaufman of Cedar
Rapids; T. J. Landstorfer and K. C.
Shreve, vice presidents; O. D. Penn,
assistant vice president; Stacey R.
Henderson, secretary-treasurer; E. P.
Kearns, assistant secretary, and Helen
Walker, assistant treasurer.
The company has branch offices in
Sioux City and Burlington, Iowa. The
resident manager of the Sioux City
office is Karl Sauer, and Carl Kleinkopf is resident manager of the Bur­
lington office.
Account executives of the firm are:
James Beall, Dubuque; John Dudley,
Chariton; Lester H. Flower, John
Hunt, J. J. Kelly, Robert Dickinson,
Richard Hollingsworth and Mrs. June
Ainley, receptionist, all of Des Moines.

J o in s A s h w e ll & C o m p a n y
R. C. Long, well-known dealer in
commercial paper and collateral loans,
has joined Ashwell and Company, 176
West Adams Street, Chicago.
Mr. Long headed his own firm in
St. Louis and Chicago for many years,
and in his new connection he will
work with John Ashwell, whose firm
is highly regarded by banks and busi­
ness firms throughout the middlewest
through its handling of commercial
paper and collateral loans.

P ro m o tio n s
Appointment of two new assistant
vice presidents and a branch office
manager has been announced by Carl
A. Bimson, president, Valley National
Bank, Phoenix, Arizona.
John C. Baldwin, Jr., of Phoenix,
formerly an assistant cashier in the

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Federal Reserve Bank of St. Louis

45

Informed
and helpful
service for
banks

Bonds
Notes
Debentures
Equipment Trust
Certificates
Exclusively

Since its founding near the turn of the century,
this firm has been identified with the original
underwriting and distribution of debt obligations
for representative borrowers in virtually every
major field and locality in the country, while still
confining itself to the offerings of well established
communities and corporations.
We make available to bank investment officers an
exceptional diversity o f public utility, railroad,
industrial and tax-exempt securities, together with
helpful knowledge and service based on our long
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Your inquiry is invited. Send without obligation
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H A L S E Y ,

S T U A R T

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OTHER

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&

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n c

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35 W A L L STREET, N E W Y O R K 5
C IT IE S

Northwestern Banker. May, 7954

Investments

46

H ow 1 W ould Spend a $ 1 , 0 0 0
A d Kudtfet i f f a Small Hank
(Continued from page 23)
from all others in the paper, I would
try to treat them as sort of a “col­
umn.” This would mean that the ads
could be written in an informal man­
ner and interspersed with paragraphs
on the bank and its services would be
other paragraphs calling attention to
such things as civic announcements,
fund raising campaigns, local athletic
events and the like.
I honestly believe that a column of
this type would enjoy good readership
in the paper. If I were too busy to

write it myself and couldn’t get any­
one else in the bank to take on this
chore, then I would endeavor to have
the local newspaper editor or one of
his staff members write it and pay
them a few dollars a week for their
help.
At this point I should like to state
that it has been my experience that
local editors are always anxious to
reciprocate with free publicity in
their columns for those firms which
are good advertisers. If the bank

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were to spend most of its advertising
budget in the newspaper, then the lo­
cal editor undoubtedly would be more
receptive to any general news and
publicity stories which might emanate
from the bank, such as promotions
and elections, statement of condition
figures and special activities which
might be sponsored by the bank itself.
Several times during the year I also
would use statement inserts which
feature home improvement loans, auto
loans, safe deposit boxes, etc. These
I would obtain from the American
Bankers Association and other adver­
tising services which prepare such
material on a syndicated basis for
banks. The cost for folders of this
type is very low even if only small
quantities are ordered.
Still another project would be to
invite civic groups such as the Boy
Scouts, Red Cross, Community Chest
and other organizations to have win­
dow and lobby displays in the bank.
The bank’s only responsibility would
be to make the space available, and
the organizations themselves would
be given a free hand in arranging
the displays as they saw fit.
(Additional replies to this survey
will appear in next month’s issue of
the N orthwestern B ank er .)

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Northwestern Banker, May, 1954


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Federal Reserve Bank of St. Louis

47

I N S U R A N C E

Seliiny Ideas far H anker
T h e y H a v e W o r k e d for O th e rs and W ill W o r k fo r Y o u

i'ounttf Fairs

All in all, the First City Agency
'ranOpportunity
feels that the investment in the fair

31

P ro v id e H u n d r e d s o f N e w C o n t a c t s

H ERE’S an idea from the American
Casualty Company’s American Arloio that you can put to good advan­
tage during the coming months. Coun­
ty and state fairs require a lot of
advance planning, so if you want to
use this suggestion, don’t put it off too
long. Here’s what one agency did:
When William F. Frantz, president
and general manager of the First City
Insurance Agency, Inc., Huntington,
West Virginia, discussed the advisabil­
ity of taking a booth at a local fair,
other concerns took the matter lightly
and said it wasn’t worth the trouble.
Mr. Frantz went ahead anyway and,
as he says, “ We showed them!”
The most important accomplishment
at the agency’s fair booth was the
number of contacts made with visitors
to the fair. Agency officials met and
talked to well over 2,000 people in the
seven-day period! Some were old
friends of the agency. Others were
strangers who were interested enough
to discuss some particular insurance
problem, or who asked about some
form of insurance.
The fair was at the height of the
polio season, so Mr. Frantz and his
associates distributed some 7,500 ad­
vertising leaflets on polio insurance.
While visitors to a fair come primarily
for entertainment, at least sixteen
prospects signed up for polio policies
on the spot, or stopped in at the office
the next week and paid the premiums
for this coverage.
In addition, a few sales were made
of fire insurance and automobile lia­
bility policies.
Other give-away advertising at the
booth included book matches, blotters,
all types of folders on various lines
of insurance. The kids were not for­

gotten, since one thousand gaily col­
ored balloons were handed out to the
youngsters.

Ooa't Itr A fraid to tyuotr
Hiy
Frrntiumto niff
If H e R equ ire s H e a v y C o v e r a g e H e W i l l P a y fo r It

I F A PROSPECT is big enough to
I require a big premium policy, he is
undoubtedly financially able to pay
the premium, so the Aetna Casualty
and Surety advises agents not to

“ Q uote a prem ium w h ich w ill do the jo b and
y ou ’ll be pleasantly surprised at the results.”

worry about quoting a big premium
when the situation justifies it. To
emphasize this, the Aetna-izer passes
along this story:
Robert J. San of the Kraft Broth­
ers Agency at Camden, New Jersey,

Scarborough’s planning and service are by-words in
the banking fraternity. They are available to you, along
with the broadest protection at the lowest cost.


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

booth was an excellent one, and the
only way in which so many contacts
with possible insurance buyers could
be made in so short a time.

came up with an interesting story
recently.
We will quote Bob’s own words in
describing his sale of a $307 compre­
hensive general liability policy, com­
bined with comprehensive personal.
“As I waited for my prospect, I was
entertained by his two small children,
gt the same time mulling over in my
mind how I was going to say $307.
After my prospect arrived, we got
down to facts. He was pleased and
surprised with the large scope of cov­
erage. I told him about products lia­
bility and all the other features, final­
ly coming to comprehensive personal
liability which even took into consid­
eration his dog. I was now just around
the corner from the delivery price.
When I told him the premium was
$307, he didn’t even bat an eyelash.
‘The policy sounds great,’ he said, as
he wrote his check.”
The moral of the story is this:
“Don’t let the big ones scare you.
Quote a premium which will do the
job and you’ll be pleasantly surprised
at the results.”

si Scarborough &

| P3
§ ^

Si =

^nsurance

C o uns e lo rs to Banks

FIRST NATIONAL BANK BUILDING . CHICAGO 3, ILLINOIS . STale 2-432S

Northwestern Banker, May, 1954

48

Insurance

Enters Fire Field
Dornberger and Company of Sioux
Falls, South Dakota, has entered its
general agency in the field of fire in­
surance, according to Wayne Dorn­
berger. The agency also handles cas­
ualty, crop-hail and life insurance.
The new fire division will be under
the direction of Virgil F. Stegner,
who is well known throughout North
Dakota and South Dakota. He was
associated with the Rating Bureau at
Sioux Falls for 16 years, later served
with the London and Lancashire
Group for 11 years, and has been state
agent for the Providence-Washington
Insurance Company since 1948.
The new fire division writings will
be placed with Transportation Insur­
ance Company of Chicago, the general
agency outlet for Continental Cas­
ualty Company, and will include farm
business. All of the fleet facilities of
the Continental Companies will be
made available to Dornberger agents.
The addition of the fire insurance

division, states Mr. Dornberger, com­
pletes the scope of services offered by
the agency to its more than 400 agents
throughout North Dakota, South Da­
kota, western Minnesota and north­
ern Nebraska. The agency has eight
special agents traveling in this field.

N e w W a lk - U p W in d o w
A new pedestrian walk-up window
has been developed by the Mosler Safe
Company to provide greater conven­
ience for customers and bank tellers,
and added security against nighttime
vandals.
The new unit is the first to feature
a steel desk-like shelf which opens in
front of the window, according to
Edwin H. Mosler, Jr., company presi­
dent.
The shelf saves time, he said, by
providing customers with convenient
writing space. It can also be used to
hold a shopper’s packages while a
deposit or withdrawal slip is being
filled out.

A W alk -U p W in d o w w ith a w ritin g shelf

For teller comfort and added secu­
rity, the bullet-proof window’s deposi­
tory unit has a double door designed
to prevent drafts. It also provides
maximum protection against wea­
pons, said Mr. Mosler.

M a d e an O fficer
The election of William J. Scott as
an officer of the American National
Bank and Trust Company of Chicago
was announced by Lawrence F. Stern,
president, following a meeting of the
bank’s board of directors.
Mr. Scott, whose official title is direc-

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D irects advertising

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FIRE AND CASUALTY INSURANCE
Minneapolis

Home Office — McKnight Building

Northwestern Banker, May, 1954


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Federal Reserve Bank of St. Louis

Minnesota

tor of advertising and public relations,
attended the University of Pennsyl­
vania and is a graduate of the Chicago
Kent College of Law. He is also a
director of the Chicago Financial Ad­
vertisers Association, and a member
of the Chicago and Illinois Bar Asso­
ciations.

>

1854 — 1954

OF

B A N K IN G

AMERICAN

COMPANY

San Francisco

W.i


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Federal Reserve Bank of St. Louis

TRUST


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Federal Reserve Bank of St. Louis


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Federal Reserve Bank of St. Louis

T h e pages o f our history tell o f banking service during the G old Rush,
the Civil W a r, tw o world wars, boom times, panics and depressions, the
earthquake and fire— and the phenomenal growth of our state.
T h e history o f our bank, from its inception, has been linked with that o f
N orthern California. Over the century— constantly alert to ever-expanding
'opportunities — American T rust

Com pany

has

prospbrpd and grown with the area it serves, to
b e c b n ^ th e 'n ^ tio n ’ s eighteenth largest bank.
V /e express^pprecfation to those w hom it has

.

x

AMERICAN
TRUST
COMPANY

been our privilege tb^s^v^^individuals, corpora­
tion s and banks. T o thcnO vc dethcatc our eflorts


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Federal Reserve Bank of St. Louis

lOO Years of

BANKING
1854-1954

Member Federal Deposit Insurance Corporation

/

Insurance

N E W S A N D V IE W S . . .
(Continued from page 20)
out that Mr. Bimson was still as con­
servative as anybody when making
loans, but had great faith in the po­
tentials of the people and of Arizona.
* * *
Laurence B. Robbins, retired vice

president of The Northern Trust Com­
pany, Chicago, has been named ad­
ministrator of the Reconstruction Fi­
nance Corporation by President Eisen­
hower. Mr. Robbins, who headed The
Northern Trust Company’s banking
department before his retirement in
December, 1952, has been deputy ad­
ministrator of RFC. He will supervise
the liquidation of the government loan
agency, which Congress has ordered
completed by June.
* * *
Eight South Bend, Indiana, babies
are richer by $50 each because the
American Trust Company of South
Bend is celebrating its 50th anniver­
sary. When the 50 year observance
of the actual date of March 28th rolled
around, L. L. Matthews, president of
the bank, announced a $50 savings
account would be opened for the first
boy and first girl babies born in each
of the three hospitals in South Bend
and the one hospital in neighboring
Mishawaka.
Mr. Matthews is well known among
the nation’s bankers as president of
the Financial Public Relations Asso­
ciation.
American Trust has never changed
its name or location, nor has it merged

with any other institution. It started
in business in competition with six
other banks, none of which now exists
under the original name. All were
merged with other banks.
Albert A. Fulk, a vice president who
____

*

has been with the bank during its
entire 50 years, recalls that the first
borrower on opening day was the
University of Notre Dame, which ob­
tained a $15,000 loan for one year at 5
per cent.—End.

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Established in 1929


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Federal Reserve Bank of St. Louis

DORNBERGER

& CO.

"The Department Store of Insurance"

as C o m p an y Bldg., Sioux Falls, S. D.

Northwestern Banker, May, 1954

54

Insurance

P le d g e S u p p o rt
A nation wide sales promotion cam­
paign to help the U. S. Treasury reach
a larger audience for its series H sav­
ings bonds has been launched by the
Investment Bankers Association of
America, it was announced by T. Jerrold Bryce, Clark, Dodge and Com­
pany, New York, president of the
association. Mr. Bryce pledged the
full support of the IBA members in
carrying the savings bond message to
every portion of the investor market
throughout the country.

and Savings Bank, Chicago, wound
up a highly successful run last month.
The 1954 edition, “Club Martini,”
played for three nights and a matinee
performance.
This year’s Harris Bank show was

S u c c e ssfu l Run
The sixth annual “ Monroe Street
Monkeyshines,” presented by the
Fellowship Club of the Harris Trust

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DANCING Bankerettes of the “ Club
Martini” employe show of the Harris
Trust, Chicago.

again an entirely homegrown affair.
Book and direction were done by
James F. Bailey, assistant secretary
in the trust department; the score was
composed by William N. Flory, man­
ager of business development, who
was also musical director, with lyrics
by Bailey; Violet Platt was dance di­
rector; Thomas Octigan served as
stage manager; and costumes were
created by Mildred Sass.
The company of 60 bank employes
included two lines of dancing chor­
ines, one young and one “not-soyoung,” as well as choruses and spe­
cialty acts.

C u rre n t A c t iv it y U p
“ Over-all economic activity is only 3
per cent below its 1953 peak. But cur­
rent activity is 3% per cent above
1952, a very good year,” according to
the current issue of Business in Brief,
quarterly economic review issued by
the Chase National Bank.
To place the current business down­
turn in perspective “you need to look
at all parts of the picture, not just
the declines that make the headlines,”
the study says, pointing out that:
Business expenditures for new plant
and equipment for 1954 call for a dol­
lar volume only 4 per cent under the
1953 record.
Private capital investment is slight­
ly, but only slightly, below last year’s
peak rate.
The housing market is strong, with
builders looking for another millionplus year.
Labge manufacturing companies in­
dicate that they are raising their in­
vestment sights. Last fall these com­
panies planned an 8 per cent re­
duction in capital investment during
1954, but now they report their invest­
ments will equal those of 1953.
“These trends add up to the conclu­
sion that the business readjustment
has not gotten out of hand,” the re­
view contends. “ Inventories are be­
ing worked off at a rapid rate. Capi­
tal goods activity promises to level
out. And consumer markets are hold­
ing up well.
“The economic challenge, not a nov­
el one by any means, is how to gen­
erate a new wave of expansion. Busi­
ness trends in recent months hold out
hope that this challenge will be met.”

A u tom ob L

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H a r o l d S. Evans, President
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H O M E

Des M o in es 9, Iow a

OFFICE

Cedar Rapids, Iowa

*

Northwestern Banker, May, 1954


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

»

55

nesota, was
treasurer.

elected

secretary

and

B ra n d o n P re sid e n t
LeRoy Larson, formerly of Wandena, Minnesota, has recently been
promoted to president of the Citizens
State Bank of Brandon, Minnesota.

N e w D ire c to rs

Roy Johnson, Drovers Exchange State
Bank.

The National Citizens Bank of Man­
kato, Minnesota, has added four mem­
bers to its board of directors, enlarg­
ing the board from seven to 11 men,
P. R. Kenefick, bank president, an­
nounced recently.
The new men are Donald Landkamer, C. A. Neubert, Lawrence H.
Fowler and Ogden P. Confer.

Entertainment and Banquet Com­
mittee—Chairman, D. L. Smith, First

C arl E d w in O s t e r b e r g

Plans Nearing Camptet inn far
Minnesnta Hankers
P LANS for the approaching annual
convention of the Minnesota Bank­
ers Association are now nearing com­
pletion, reports Elmer M. Volkenant,
general convention chairman and vice
president of the First National Bank
of St. Paul. The convention will be
Monday and Tuesday, June 14th and
15th, with headquarters at Hotel Saint
Paul.
Monday will be devoted to golf at
the Twin City Golf Course at Jeffer­
son Highway and Mendota Road in
St. Paul. The Men’s Smoker will be
Monday evening at Hotel Saint Paul,
and at the same time the ladies at­
tending the meeting will have a din­
ner and style show in the Grand Ball­
room of Hotel Lowry.
The business session will be on
Tuesday, June 15th, and the banquet
will be held at The Prom in the eve­
ning, preceded by a cocktail party and
followed by dancing.
The complete program of speakers
and time schedules will appear in the
June issue of the N orthwestern
B ank er .

Following are the convention com­
mittees:
Golf Committee—Chairman, M. A.
Ahlberg, American National Bank; Ed
Ehlers, West St. Paul State Bank;
Ralph Sanford, Falcon Heights State
Bank; Lee Sauer, First National Bank,
and Art Warn, Empire National Bank.
Ladies’ Committee—Chairman, Mrs.
Elizabeth Hagerty, American National
Bank; Helen Schneider, First National
Bank; Corinne Severson, Midway Na­
tional Bank; Jennie Williams, Empire
National Bank, and Dorothy Goth,
First National Bank.
Hotels Committee—Chairman, H. N.
Snyder, First National Bank; Perrie
C. Boliou, First National Bank; Ken
Merrill, First National Bank; A1
Brown, American National Bank; John
O’Connor, Empire National Bank, and
C. S. Truen, Midway National Bank.
Utility Committee—Chairman, W. A.
Carpender, Midway National Bank;
Warren Hinze, First State Bank, and

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

National Bank; R. E. Stevenson, High­
land Park State Bank; R. Kochendorfer, Northwestern State Bank; Art Hassig, American National Bank, and Wal­
ter Carpender, Midway National Bank.
Publicity Committee — Chairman,
Goodwin S. Anderson, Empire Nation­
al Bank; Edwin Ehlers, West St. Paul
State Bank; Arthur W. Sands, Western
State Bank; Russell M. Gesell, Chero­
kee State Bank; George E. Maier,
Cherokee State Bank, and Julius H.
Brogmus, Minnesota State Bank.
Reception Committee — Chairman,
John M. Kane, Empire National Bank;
Walter Dorle, Northwestern State
Bank, and A. W. Brown, American
National Bank.
Registration Committee—Chairman,
Chris Ries, Federal Reserve Bank,
Minneapolis.

Carl Edwin Osterberg, former vice
president of the State Bank, Cokato,
Minnesota, died recently in St. Paul.
Until his retirement this year, Mr.
Osterberg had been associated with
the State Bank for 50 years.

C a p ita l In c re a se
By action of the stockholders and
by approval of the board of directors,
the capital Stock of the First State
bank of LaMoure, Minnesota, was re­
cently increased from $25,000 to $50,000.

T o N e w P o sitio n
Donald Morrison has accepted a po­
sition with the Farmers and Mer­
chants State Bank, Blooming Prairie,
Minnesota.

O p e n H o u se
C e y lo n Im p ro v e m e n t
The State Bank of Ceylon, Minne­
sota, has a large new bookkeeping
machine which will replace the bank’s
old posting machine. It will be used
in making up patrons’ bank statements
as well as doing a share of the bank’s
other bookkeeping.

S tillw a t e r A d d it io n
The First National Bank of Still­
water, Minnesota, recently announced
the addition of a new nest of $3 a year
boxes to their safe deposit vault. This
new installation, gives the First Na­
tional almost 1,200 boxes.

K a n d iy o h i Elects
At a meeting of the Kandiyohi Coun­
ty Bankers held at Willmar, Minne­
sota, recently, Reuben Skeie of the
Home State Bank of Kandiyohi, Min­
nesota, was elected president. Eldon
Matson, cashier of the State Bank of
Blomkest, Minnesota, was named vice
president, and Melvin Berglund, cash­
ier of the State Bank at Pennock, Min­

The State Bank of St. Stephens,
Minnesota, recently held an open
house to celebrate the opening of a
new bank building.

Emil A . Boie
Emil A. Boie of Rochester, Minne­
sota, a lifelong resident of Minnesota,
well known throughout the state and
the northwest for his banking and
agricultural extension work, died re­
cently after a short illness. He was
74 years old.

N e w B u ild in g
The Farmers State Bank of Mon­
terey, Minnesota, opened for business
in its brand new bank building re­
cently, it was announced by Alfred
Peterson, president.

F o ssfo n C a sh ie r
Philip B. Franze, former cashier of
the First State Bank of Carlos, Min­
nesota, is a new employe at the Far­
mers State Bank of Fosston, Min­
nesota.
Northwestern Banker, May, 7954

56

>

f

P LANS for addition of up to eight

floors atop its present building at
Fifth Street and Marquette Avenue
have been announced by the Federal
Reserve Bank of Minneapolis.
The bank serves the Ninth Fed­
eral Reserve District, which includes
Minnesota, North Dakota, South Da­
kota, Montana, northwestern Wiscon­
sin and Upper Michigan.
A. W. Mills, first vice president of
the bank, said the addition is needed
to enable the institution to keep pace
with the district’s economic growth.
Construction of the addition, which
may nearly triple the bank’s present
floor space, probably will not get un­
der way until the spring of 1955, Mr.
Mills said.
He pointed out that addition of the
full eight floors would give the bank
100,000 square feet of additional floor
space. The bank now is housed in a
four-story structure.
Oliver S. Powell, bank president,
said the addition will give the insti­
tution the facilities it needs for the
“big economic future we believe is in
store for our part of the country.”
The bank was founded in 1914. Its
present quarters were completed 10
years later. Its assets as of last De­
cember 31st totaled $1,270,000,000. The
bank has about 800 employes.
The bank addition is one of several
developments involving Minneapolis
downtown banks. The Marquette Na­
tional Bank plans to move into larger
quarters in the LaSalle Building, Sev­
enth Street and Marquette Avenue.
The Midland National Bank has pur­
chased the 10-story building at Fourth
Street and Second Avenue S., in which
it has its headquarters.
* *
The Chicago-Lake State Bank of
Minneapolis has received approval for
an increase of $50,000 in the bank’s
capital stock through a cash subscrip­
tion, Carl R. Pohlad, president, an­
nounced recently.
This increase will bring the bank’s
capital stock account to $200,000 and
Northwestern Banker, May, 1954


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

its combined capital and surplus to
$400,000. There is more than $121,000
additional in undivided profits and re­
serves, Mr. Pohlad said.
* * *
Arthur Peters, vice president of the
First National Bank of St. Paul, has
been elected president of the Credit
Bureau of St. Paul, Inc.
Another officer elected at the bu­
reau’s annual meeting was John
Strap]) of the American National Bank
of St. Paul, first vice president.
* * *
St. Paul’s proposed capital approach
plan was explained by means of a
scale model to M. L. Ambers, cash­
ier of Security State Bank of Askov,
Minnesota, during a recent visit to

Reuben R. Nelson, president of the
Camden Park State Bank of Minneapolis, has announced plans for the
construction of a $225,000 one-story
building near the present bank at
Forty-second and Lyndale Avenues N.
The locally owned and independently operated bank was founded in 1910
and now has deposits totaling $8,000,000 and capital and surplus of $500,000.
* =t= *

^.|

Tl

Mr. aiul Mrs. Chester J. Peters got

an unexpected, and pleasant, surprise
when they visited the budget loan
department of the First National
Bank of St. Paul recently to arrange 1
for automobile financing.
R. J. Wilhelm i, department manag­
er, presented the couple with a $100
savings bond in recognition of the
Tl
fact that their loan was the 100,000th
made by the department.
* * *
Dr. J. Marvin Peterson, vice presi­
dent and director of research for the
Federal Reserve Bank of Minneapolis,
died recently at the age of 52 while
visiting his father and a brother at
Randall, Iowa, his birthplace.
He had been with the bank since
1948. Previously he had helped or­
ganize the school of banking at the
University of Wisconsin and had
served as a member of its faculty at
each annual session of the school.
From 1937 to 1948 he headed the de­
Henry H. Snyder (right) shows model of
proposed capital approach to M. L. Ambers
partment of economics at Miami Uni­
versity, Oxford, Ohio. He also had
The First National Bank of Saint Paul collaborated in writing financial text­
by Henry N. Snyder, department of books.
banks and bankers’ representatives of
Surviving besides his father are his
The First.
wife, a son, a daughter, a sister and
The model was part of a large dis­ three brothers.
* * *
play presented recently in The First’s
main banking room by St. Paul’s In­
Minneapolis bankers played promi­
ter-Club Council, an agency which co­ nent roles in the just completed Hen­
ordinates the work of a number of the nepin county Red Cross campaign.
city’s civic-minded organizations.
Philip B. Harris, vice president of
Purpose of the two-week display Northwestern National Bank, was
was to focus attention on subjects to chairman. Charles Clifford, vice pres­
ident of Farmers and Mechanics Sav­
be discussed at a town meeting, which
is open to the public, called “What’s ings Bank, was his vice chairman.
Mr. Clifford will head the 1955
Cooking in Our Town?” and spon­
campaign.
sored by the Inter-Club Council.

Minnesota News
Mr. Harris and his thousands of
volunteer workers inaugurated an ac­
celerated fund raising schedule, rais­
ing more than a half million dollars
in a record 19 days. Previous efforts
had extended over months.
Employes of m o s t Minneapolis
hanks served in many capacities, in­
cluding the speedy day-to-day tabula­
tion and handling of funds.
* * *
The Marquette National Bank of
Minneapolis has been awarded a “ Cer­
tificate of Merit” for one of the most
distinguished uses of match book ad­
vertising in the banking industry dur­
ing 1953, according to Charles Furcolowe, director of the Match Industry
Information Bureau.
A panel of outstanding leaders in
advertising selected the bank’s match
book as one of the best in the banking
field among the nearly 300,000 Ameri­
can business concerns which used the
medium last year.
The Michigan National Bank of
Saginaw, Michigan, was awarded a
bronze “Joshua” plaque as best in the
competition. Award certificates were
voted also by the judges to the Casper
National Bank, Casper, Wyoming;
Fourth National Bank, Wichita, Kan­
sas; Dime Savings Bank of Brooklyn,
and the Forth Worth National Bank.

57

IF YOU BUILD A BETTER MOUSETRAP
In our planned merchandising
program to popularize the printed
name on personal checks, we devoted
the first seven years to selling the idea,
without too much emphasis on the
quality of our package. As our good
competitors joined the movement
we breathed a sigh of relief, because
we knew then that we would be able
to talk more about relative quality.
We did not subscribe to the old
adage that the "world will beat a
path to your door,” but instead
believed that our product had to be
sold with undiminished vigor.
Now, after some fifteen years of
fairly intensive selling effort and
nearly forty years of check manufac­
turing experience, we understand
the full significance of the public’s
appraisal of quality. We know that
the public will not for long accept

an inferior product. We feel repaid,
therefore, for the time and money
expended in our efforts to improve
appearance and narrow our manu­
facturing tolerances.
Almost anyone can print a name on
a check, but to do it right, and to
produce something that will win and
hold the eagle-eyed public, requires
a lot of machinery and a lot of
know-how. It isn’t just the printing
that has to be considered. Even more
important is the aggregate value of
the numbering, cutting, perforating,
binding and packaging. The whole
package has to be good. The quality
of all operations must be in balance.
So, when you sell Personalized
Checks or Catalog Business Checks,
you don’t have to compromise on
quality if you buy them from DeLuxe.
Nor do you have to pay a premium.

Manufacturing Plants at:
C L IF T O N , P A O L I , C L E V E L A N D , C H IC A G O , K A N S A S C I T Y , S T . P A U L

W o o d L a k e Bank
The grand opening of the new State
Bank of Wood Lake, Minnesota, was
held recently, according to H. G.
Hamre, president.

“ The Royal is the

B o v e y R e m o d e ls

‘Oil B ank’ o f Canada”

The First National Bank of Bovey,
Minnesota, held a grand opening re­
cently following a modernization pro­
gram designed to increased the effi­
ciency of the bank.

E llsw o rth A. S p r a g u e
Ellsworth A. Sprague, life-long resi­
dent of Caledonia, Minnesota, died re­
cently. He was 84 years old.
Mr. Sprague had been president of
the Sprague State Bank, Caledonia,
since 1933.

A s a special service, it offers
bulletins containing statistics,
regulations, developments and other
valuable information on Canada’s
Petroleum and Gas industry.
For a booklet describing these
bulletins, write The Royal Bank
of Canada, attention Oil and Gas
Department, 108 Eighth Avenue,
Calgary, Alberta.
W e do not provide inform ation
on oil securities.

THE R O Y A L B A N K
OF C A N A D A
N e w York A g e n c y — 68 W illia m Street, N e w York 5, N. Y.

M id la n d N a t io n a l B a n k
Minneapolis 1, M inn.— MAin 0511
MEMBER

FEDERAL

DEPOSIT


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Federal Reserve Bank of St. Louis

IN SU R A N CE

HEAD

O F F IC E: M O N T R E A L • TOTAL ASSETS E X C E E D $2,800,000,000

CORP.

Northwestern Banker, May, 1954

58

Minnesota News

N e w A p p o in tm e n t
The appointment of Leo Ross to the
Board of Directors of Union State
Bank of Sauk Rapids, Minnesota, to
fill the vacancy caused by the recent
death of Dr. J. B. Cullen, was an­
nounced by C. I. Erstad, vice president
and managing officer of the bank.

S a u k C entre
The officers of the First National
Bank of Sauk Centre, Minnesota, an­
nounced recently the appointment of
Reynold Klay of Luverne, Minnesota,
as assistant cashier.

B e g in s O p e r a t io n s
The Minnesota state banking de­
partment recently announced issuance
of a charter to the Crystal State Bank
of Crystal, Minnesota.
The bank,
which has a capital of $100,000, started
operations last month.

In su ra n c e H e a d
Bruce J. Lundquist, a native of Willmar, last month began his new duties
as manager of the insurance depart­
ment of the First State Bank of Ben­
son, Minnesota, it was announced by
C. E. Gesme, president of the bank.
Mr. Lundquist graduated from high
school in Willmar, attended Gustavus
Adolphus College, St. Peter, for two
and one-half years, then spent two
years in the army. Following his dis­

charge from the army, he was with
the Penn Mutual Insurance Company
in Minneapolis, and later had a gen­
eral insurance business in Willmar.

Elected V ic e P re sid e n t
R. P. Hayes, president of the First
National bank of Red Wing, Minne­
sota, was elected vice president of the
Goodhue County Bankers Association
at its annual meeting held recently.
Chosen association president was Leo
Stucky of the Security State Bank of
Pine Island, while named secretarytreasurer was D. D. Center of the
Goodhue State Bank.

D a lla s C. W a k e m a n , Sr.
Dallas C. Wakeman, Sr., 84, vice
president and one of the founders of
the Western National Bank, Duluth,
Minnesota, died recently in a Duluth
hospital after a brief illness.
He was past president and one of
the founders of the West Duluth
Business Men’s Club, which this year
nominated him for Duluth’s Hall of
Fame. He was treasurer of the or­
ganization from 1941 to 1953.

ing business in Verndale since going
there in 1920.

S la y t o n R e m o d e ls
The State Bank, Slayton, Minnesota,
moved back into its newly remodeled
quarters recently after doing business
in the American Legion Hall for sev­
eral months. New fixtures and en­
larged working space have been
added.

C a n b y R e sig n a tio n
H. B. Lueders, who has been on a
leave of absence for several months,
resigr^ed as cashier of the National
Citizens Bank, Canby, Minnesota, at
a recent meeting of the board of di­
rectors.
Oliver Larson, Jr., who has been act­
ing cashier during Mr. Lueders’ ab­
sence, was promoted to cashier.
Mr. Lueders’ resignation officially
ends a banking career which began
July 3, 1916, when he started work
in the bank. He will continue as a
stockholder in the bank and as a mem­
ber of the board of directors.

B a n k e rs Elect
L. E. P e rk in s
L. E. Perkins, 63, cashier and direc­
tor of the First National Bank of
Verndale, Minnesota, passed away re­
cently.
Mr. Perkins had been in the bank­

At a meeting of the Goodhue Coun­
ty, Minnesota Bankers Association
last month, officers elected are: Presi­
dent, Leo Stucky, Security State Bank,
Pine Island; vice president, R. P.
Hays, First National Bank, Red Wing;
secretary-treasurer, D. D. C e n t e r ,
Goodhue State Bank, Goodhue*.

M o n t e r e y B an k

New York - - 64 Wall Street

San Francisco - - 333 California Street

Chicago: Special Representative’s Office, 38 South Dearborn Street

600Sx<Utc/le4 /fvuM A&lKeuta -Resources ExceedJ2,300,000,000

Hospital and Surgical Insurance for Bankers
Now your preferred risk classification as a Banker makes it
possible to include your wife and children at the same LOW
RATES.
Room and Board from $4.00 to $12.00 per day
Surgical Benefits of $75.00, $100.00 or $125.00
Fee of $4 pays for $8 a day Hospital policy to Sept. 15, 1954

M innesota Com m ercial M en’s Association
2550 Pillsbury A v e. So.

Northwestern Banker, May, 1954


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

Minneapolis 4, Minnesota

Residents of Monterey, Minnesota,
have the advantages of new improved
banking services with the new Farm­
ers State Bank, which opened its
doors recently. The bank, which
maintains a $40,000 working capital,
incorporates many facilities of mod­
ern banking.
The officers of the new bank are:
Albert Peterson, president: Walter
Benson, vice president, and Leslie
Peterson, cashier.

F o ssto n C e le b ra tio n
The Farmers State Bank, Fosston,
Minnesota, held a grand opening re­
cently in celebration of a new bank
building.
More than seven m onths had
elapsed since the old bank building
was moved out to make room for the
new bank, but not a day of business
was lost in the meantime, according
to E. H. Cormontan, president of the
new bank. The old building had been
moved to another location where
banking operations were carried on
while the new building was in the
process of construction at the original
bank site.

59

y

>

I I I It K T T O I I S
EDWIN J. BEINECKE
Chair man y The Sperry & Hutchinson Co.
CLINTON K. BLACK, JR.
President

yC. R. BlackyJr. Corporation

MANUFACTURERS
TRUST COMPANY

EDGAR S. BLOOM
Directory New York and Cuba
Mail Steamship Company
ALVIN G. BRUSH
Chair many American Home
Products Corporation

Condensed Statement of Condition
March 31, 1954

LOU R. CRANDALL
President y George A. Fuller Company
CHARLES A. DANA
Chairrnany Dana (Corporation
HORACE C. FLANIGAN
President
JOHN M. FRANKLIN
Presidenty United States
Lines Company

It K S O IT I l C E S
Cash and Due from Banks

. . .

U. S. Government Securities

.

$

.

.

812,458,501.32
818,864,060.40

U. S. Government Insured F. H. A.
M o r t g a g e s ..........................................

87,025,812.75

JOHN GEMMELL, JR.
Clyde Estates

State, Municipal and Public Securities

166,267,464.47

PAOLINO GERLI
Presidenty Gerli & Co., Inc.

Other S e c u r i t ie s ....................................

JOHN L. JOHNSTON
Director, Phillips Petroleum Company
OSWALD L. JOHNSTON
Simpson Thacher & Bartlett
KENNETH F. MacLELLAN
President, United Biscuit Company
of America

Stock of Federal Reserve Bank

.

.

4,511,700.00
28,225,200.70

Loans, Bills Purchased and Bankers’
A ccep tan ces...........................................

857,058,974.02

M o r t g a g e s .................................................

16,240,261.66

Banking H o u s e s ....................................

15,262,028.45

Customers’ Liability for Acceptances

13,519,174.77

Accrued Interest and Other Resources

8,066,023.37
$2,827,499,201.91

JOHN T. MADDEN
President, Emigrant Industrial
Savings Bank
JOHN P. MAGUIRE
President, John P. Maguire &
Co., Inc.
v . McL a u g h l i n
Vice Chairman
Triborough Bridge and Tunnel Authority

1. 1 % H I

C IT IE S

Capital

.

.

.

.

$ 50,390,000.00

Surplus

.

.

.

.

100,000,000.00

george

Undivided Profits .

31,755,863.49

$

182,145,863.49

Reserves for Taxes,
C. R. PALMER
D irector, Cluett Peabody & Co., Inc.

'T

GEORGE J. PATTERSON
President, Scranton & Lehigh
Coal Co.
WILLIAM G. RABE
Chairman, Trust Committee
HAROLD C. RICHARD
New York City

i-

Unearned Discount, Interest, etc. .
Dividend Payable April 15, 1954
Outstanding Acceptances

.

.

1,889,625.00
.


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

13,994,065.42

and Foreign B i l l s ..............................

10,624,461.93

Other L i a b i l i t i e s ....................................

2,558,469.38

D e p o sits.......................................................

2,596,516,170.79
$2,827,499,201.91

United States Government and Other Securities carried at $158,260,638.52 are pledged to
secure public funds and trust deposits and fo r other purposes as required or permitted by law.

HENRY C. VON ELM
Honorary Chairman
GEORGE G. WALKER
President
E lectric Bond and Share Co.

.

Liability as Endorser on Acceptances

HAROLD V. SMITH
President, Home Insurance Co.
L. A. VAN BOMEL
Chairman, National Dairy
Products Corporation

19,770,545.90

Head Office: 55 Broad Street, New York City
M OKE

T i l A.X

in o

O F F IC E S

IX

U I 1E A T E I 1 K E W

Y O II li

Member Federal Deposit Insurance Corporation

Northwestern Banker, May, 1954

60

Minnesota News

Savings Tu nutrí-r in
Mithrvst ¡tanks
IDWEST depositors turn over
their savings at commercial
banks on the average of once every
two years, according to the Federal
Reserve Bank of Chicago. This is in
marked contrast to the rate they use
their checking accounts, which are
turned over 40 times faster or every
18 days.
Bankers have a keen interest in sav­
ings turnover rates, for as these rates
mount, so does the cost of bank oper­
ations.
In a recent study of time deposits
in 187 Seventh District banks, the Re­
serve bank found that the bigger the
savings deposit, the slower the turn­
over. Primarily reflecting differences
in average size of account, savings
turned over as often as once a year in
some banks, while others experienced
a complete turnover only every four
years.
Strangely enough, the survey re­
vealed that location or size of city in
which reporting banks are located or
size of the reporting bank itself had
little influence on turnover rate.

M

Fire D a m a g e

Accounts in savings and loan asso­
ciations, not covered by the Reserve
bank survey, have been estimated to
turn over only half as fast as accounts
in commercial banks.
Seasonal changes in time deposit
turnover during 1953 were about the
same in all banks surveyed. Highest
peaks of activity occurred in January
and July, the two months following
the most widely observed interest pay­
ment dates. February marked the
smallest withdrawal of funds.
Savings accounts make up the big­
gest share of time deposits in report­
ing banks, ranging from 60 to 100 per
cent of the total. Also included in
time deposits are certificates of depos­
it, trust fund accounts, savings club
funds, and other accounts.

H e a d s C om m ittee
Henry S. Kingman, president of the
Farmers & Mechanics Savings Bank in
Minneapolis, has been named state
chairman of the U. S. Savings Bonds
advisory committee for Minnesota.

A recent fire at Litchfield, Minne­
sota, started at a bakery building and
spread to the First National Bank.
The estimated damage to the two
buildings is $5,000.

I.D.S. V o te s 5 fo r 1 S p lit
Stockholders of Investors Diversi­
fied Services, Inc., have approved the
proposed five for one split of the com­
mon voting shares of Class “A” com­
mon non-voting shares of the com­
pany. The split was effective imme­
diately upon the filing of the amend­
ment to the certificate of incorpora­
tion. New certificates were to be
available late last month and shares
may be forwarded to the First Na­
tional Bank of Minneapolis, as trans­
fer agent, for exchange.
Shares of affiliated mutual funds
managed by Investors Diversified
Services, Inc., are not affected by the
split.
As of March 31, 1954, there were
outstanding 114,908 common voting
shares and 175,836 class “A” common
non-voting shares of I.D.S. stock. The
split will raise the common voting
shares to 574,540 and the common
class “A” non-voting shares to 879,180.

CARL L. FREDRICKSEN
President
CLIFFORD L. ADAMS
V ice President
WILLIAM C. SCHENK
V ice President
STANLEY W . EVANS
V ice President
JOHN S. HAVER
Cashier
JAMES L. SMITH
Asst. C ashier a n d Auditor
KINLEY W . SMITH
Asst. Cashier
BEN E. HOLTDORF
Asst. C ashier
RAW S A. JENSEN
A sst. C ashier
R. K. DRAPER
R epresentative

Northwestern
Banker, May, 7954

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

MEMBER

If Sioux City correspondent services could be packaged,
and displayed on counters, like cigarettes or motor oil,
selection would be easy. But correspondent service is
an intangible, so you must rely on an already estab­
lished reputation.
The Live Stock National Bank, through fifty-nine years
of cooperation with banks and bankers, is the name to
look for in Sioux City. It has established a reputation
for excellence with its customers of many years standing.

FEDERAL

DEPOSIT

INSURANCE

CORPORATION

61

 .B . . R e se rv a tio n Fo rm s

South D a k o ta

NEW S

>

C A R R O L L H.
LOCKH ART
P resid en t

\

W a te r to w n

D o u b le H o lid a y
Some banks have inquired of the
South Dakota Bankers Association
concerning the “double holidays” May
31 and June 1, 1954. Since Memorial
Day, or May 30, falls on Sunday, the
31st of May, by law, will be a legal
holiday. June 1st, of course, is Pri­
mary Day. These banks asked wheth­
er it would be possible to remain open
on either or both of these holidays.
Karl Goldsmith, the Association
counsel, says: “Under provisions of the
law a bank is not required to remain
closed on either or both of these days,
and if it decides to stay open on either
or both of these days it may transact
any public or private business. Sun­
days are excepted from this provi­
sion.”

C o n v e n tio n C o m m itte e s
The South Dakota Bankers Associa­
tion recently announced the appoint­
ment of the following committees for
the South Dakota Bankers Convention,
Deadwood, South Dakota, June 4th
and 5th.
N o m i n a t in g C o m m itte e

Max Gutz, cashier, First National
Bank, Selby, chairman; George Goodell,
vice president and manager, Branch,
National Bank of South Dakota, Sioux
Falls, Huron; Tom Hayter, vice presi­
dent, First National Bank, Sioux Falls;
James Kopperud, vice president and
cashier, Community State Bank, Lake
Preston; M. J. McGillivray, executive
vice president, Citizens State Bank,
Clark; John Ryan, president, First Na­
tional Bank of the Black Hills, Rapid
City; K. L. Szymanski, president,
Farmers State Bank, Tabor.
A u d i t i n g C o m m it te e

k

*

E. E. Pugsley, cashier, Farmers &
Merchants Bank, Huron, chairman;
John Heneman, assistant manager,
Branch, National Bank of South Da­
kota, Sioux Falls, Huron; Hugh Peter­
sen, assistant branch manager, North­
west Security National Bank of Sioux
Falls, Huron.
This year, the normal convention
schedule and routine will be altered.
The first business session will be held
on Friday morning, June 4th, at
10:00. Two outstanding speakers will
be presented at that time. One will
be the president of the American


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Federal Reserve Bank of St. Louis

C A R L E. B A H M E IE R . JR.
Se c re ta ry
Huron

Bankers Association, Everett Reese of
Newark, Ohio. The second talk will
be announced in the future. The sec­
ond business session will be held on
Saturday, June 5th. Therefore, all per­
sons desiring to attend the entire con­
vention should arrive Thursday eve­
ning, June 3rd.
R e so lu tio n s C om m itte e

Walter Frei, president, Commercial
State Bank, Wagner, chairman; Hugh
Danforth, vice president and cashier,
First Dakota National Bank, Yankton;
Harold Haynes, president, S p i n k
County Bank, Redfield; Boyd Knox,
executive vice president, McCook
County National Bank, Salem; Chester
Lind, executive vice president, First
National Bank of Aberdeen; Carl Poshusta, president, Underwood State
Bank, New Underwood; Walter Willy,
president, Security Bank, Madison.

A s s o c ia t io n M e e ts
E. N. Van Horne, president of the
Federal Land Bank of Omaha, spoke
recently at the annual meeting of the
stockholders of the First National
Farm Loan Association, Redfield,
South Dakota.

B a n ke r R e tire s
After serving the people of Sturgis,
South Dakota, in the banking business
for the past 40 years, John Kelly, vice
president of the Bear Butte Valley
Bank, retired recently.

N e w Branch
The Milbank branch of the First
National Bank of Aberdeen, South
Dakota, was opened recently. A for­
mal opening was held in celebration
of the modernistic new bank build­
ing.

S p o n so rs Banquet
The First Citizens National Bank of
Watertown, South Dakota, recently
sponsored its fifth annual banquet for
the Future Farmers of America mem­
bers of the junior and senior class of
Watertown high school.
C. H. Lockhart, president of the
First Citizens National Bank, was
awarded an honorary FFA member­
ship by Bob Czech, president of the
local chapter. The award is based on
service to agriculture and to the FFA
program.

Recently, the American Bankers As­
sociation mailed hotel reservation
forms to its members for the 1954 Con­
vention in Atlantic City, October 17-20,
1954. The South Dakota Association
has arranged for a block of rooms to
be reserved at the Lafayette Hotel.
Those planning to attend the conven­
tion and desiring to stay with the
South Dakota delegation should mark
the Lafayette as first choice on the
hotel reservation form.

M e e tin g A n n o u n c e m e n t
The second annual Junior Staff Con­
ference will be held in Huron, South
Dakota, on May 5, 1954, at the Marvin
Hughett Hotel. The conference will
begin at 9:30 a.m. and will be con­
cluded by a banquet that evening.
Executive officers are reminded to
keep this date free, so that the maxi­
mum number of junior staff members
will be able to attend.

S u c c e ssfu l M e e tin g
More than 250 persons crammed the
lower assembly room of the civic au­
ditorium in Pierre, South Dakota, re­
cently to partake of a buffalo barbe­
cue. This turnout was typical of the
record breaking attendance which fea­
tured all of the activities of the Short
Course for Bankers.
The annual stock judging contest
resulted in a three way tie involving
Willis Boyd of Tulare, Carl Cronin of
Gettysburg, and Cecil Stilgebouer,
vice president, Potter County Bank,
Gettysburg—all with a perfect score
of 150. A flip of the coin resulted in
Mr. Cronin’s winning first, whereupon,
Mr. Stilgebouer graciously awarded
second place to Mr. Boyd, a guest at
the meeting.

P a rk sto n B an k
Approval was given recently for a
second bank in Parkston, South Da­
kota, by the South Dakota banking
commission after a delegation of busi­
ness men and farmers from Parkston
attended a hearing at Pierre.
An application made by Vern Bormann, as president of the new estab­
lishment, the Farmers State bank, was
approved, it was reported. The next
step will be to secure Federal Deposit
Insurance Corporation recognition.
Mr. Bormann is a state bank exami­
ner and resides at Mitchell, South Da­
kota.

R e sig n a tio n
N.
W. Wilson has announced his
resignation as vice president and
cashier of the Rushmore State Bank,
Rapid City, South Dakota, to accept
a position as sales manager of the
Rapid City Moving and Storage Com­
pany.
Northwestern Banker, M a y , 1954

Hilf Stone State

S io u x F a ils
H
Chartered

N ew s

I LOYD A. JOHNSON, vice president

L and manager of the South Branch
of the National Bank of South Dakota,
was installed as president of the newly
formed South Sioux Falls Kiwanis
Club.
* * *
William C. Duffy, president of the
Union Savings Bank, was installed as
treasurer of the Elks lodge.
* * *

A general increase in business ac­
tivity greeted the first quarter of 1954
in Sioux Falls. Bank clearings helped
lead the gains over the first quarter
of 1953. For that three-month period
they were $75,921,922.39. For the first
quarter of this year they amounted to
$84,144,011.71.

*

=t=

Tony L. Westra, vice president of
( P h o t o c o u r te s y G e o r g e S. H a za rd , M ilb a n k H er a ld A d v a n c e .)

PRESENTATION of the charter to officers of the newly organized Big Stone State
Bank in Big Stone City, South Dakota, took place recently when Roy Fenner, state
superintendent of banks, visited the bank on opening day.
In the photo above, left to right, are: Otto H. Preus, vice president of Marquette
National Bank, Minneapolis; Bob Lambert, cashier and managing officer of the Big
Stone State Bank; Ed Frevert, president of the new bank; Mr. Fenner, presenting the
charter, and Marvin I. Lytle, state agent for the Springfield Fire and Marine Insurance
Company, Sioux Falls.
The Big Stone State Bank opened for business with capital stock of $25,000, surplus of
$15,000, undivided profits of $10,000 and deposits of $229,939. In addition to Mr. Frevert
and Mr. Lambert, other officers are Yal Rausch, vice president, and Margaret A. Gerhardt, assistant cashier.

Banker, May, 1954
Digitized Northwestern
for FRASER
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

the Northwest Security National Bank,
attended, in Denver, a joint meeting
of the Colorado Bankers’ Association
and the Colorado Cattlemen’s Associ­
ation. He addressed one of the ses­
sions on a desirable farm program for
a country bank. He also served as
moderator for a livestock panel on
which one of the speakers was Charles
E. Brannan, former U. S. secretary of
agriculture.

N e w P o sitio n
The Potter County Bank of Gettys­
burg, South Dakota, recently an­
nounced the employment of Paul
Bailey of Bismarck, whose duties are
to explain the new farmer bank serv­
ice which the Potter County Bank is
now offering farm customers.

D re y fu s s W in s H o n o r s
Industrial designed Henry Dreyfuss
has received two awards for his de­
sign of the Mosler Safe Company’s
new bank vault door, it was revealed
last month.
Progressive Architecture, national
architectural magazine, has awarded
Mr. Dreyfuss a citation for his design
of Mosler’s circular 30-ton door soon
to be installed in the Fifth Avenue
window of the Manufacturers Trust
Company’s new building now being
erected at the corner of 43rd Street,
New York. The massive door, gleam­
ing against a wall of black granite,
will dominate the window.
Mr. Dreyfuss also has received the
Architectural League’s gold medal
honorable mention award for design­
ing Mosler’s ultra-modern, rectangular
Century door. Styled in collaboration
with Mosler engineers, the completely
new concept in bank vault design
combines maximum protection with
modern functional beauty.

63

P ic t u r e t h e s e a d v a n t a g e s
in y o u r b a n k
The new Burroughs Sensimatic window posting machine posts passbooks
and ledgers, balances cash, proves posting accuracy, and posts ledger
controls— the one complete accounting machine. Its speed and accuracy assure
prompt window service and new teller efficiency. Sensimatics work easily with
either unit or dual posting systems. Moreover, with Sensimatic versatility you can
handle savings, mortgage loan, and installment loan accounting with
the same machine. Simple to operate— beginners quickly become expert.
Call your Burroughs man today for a demonstration.
Burroughs Corporation, Detroit 32, Michigan.

BURROUGHS SENSIMATIC

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Federal Reserve Bank of St. Louis

ACCOUNTING

MACHINES
Northwestern Banker, May, 1954

64

North Dakota News

In c re a se S u rp lu s
The surplus account of the First
National Bank of Williston, North Da­
kota, has been increased from $150,000
to $200,000, it was announced by Dr.
C. M. Lund, president of the bank.

F a r g o A p p o in tm e n t
Appointment of Thomas H. Bartholomay as agricultural representa­
tive of the Merchants National Bank
and Trust Company, Fargo, North Da­
kota, was announced recently by Adri­
an O. McLellan, president and trust
officer.
Mr. Bartholomay replaces Harris

Sorensen who recently became vice
president and cashier of the National
Bank in Wahpeton, North Dakota.

in a comparative financial statement
showing figures in 1929, and those of
today. Total resources in 1929 were
$227,397. Today they total $8,156,571.

>

Guy Cook
Guy Cook, member of the board of
directors at the Foster County State
Bank, Carrington, North Dakota, died
recently as the result of a heart at­
tack.

A n n iv e r s a r y
The First National Bank of Moor­
head, North Dakota, recently observed
its 25th anniversary.
Growth of the institution is revealed

N e w V ice P re sid e n t
Roy M. Christensen of the National
Bank of Jamestown, North Dakota,
has been elected vice president of the
First State Bank, Cooperstown, North
Dakota, it was announced recently by
George Johnston, president.
Mr. Christensen, cashier of the

TIME Saved
f YTSavecf

f

"T

>

r
R O Y M. C H R IS T E N S E N
V ic e president, F irst State Bank
o f C ooperstow n, North Dakota

CORRESPONDENT
SERVICES

Jamestown bank for the past five
years, has served his entire banking
career with various affiliate banks of
First Bank Stock Corporation. He
was born and educated in Minneapolis.
In 1935, he joined First Service Corpo­
ration, an operations affiliate of First
Bank Stock, and became associated
the same year with the Potter County
Bank, Gettysburg, South Dakota.
Two years later, he came to The
National Bank of Jamestown and was
elected an assistant cashier there in
1941. He then left for service in the
armed forces. Upon his return in 1946,
he became assistant cashier of the
Rolette County Bank, Rolla, North
Dakota, and cashier a year later.
In 1948 he returned to The National
Bank of Jamestown as assistant cash­
ier and was elected cashier the fol­
lowing year.

W hatever the needs of your bank or your
customer within the Mid-Continent Area . .
TRANSIT SERVICE

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N a tio n a l
Northwestern
Banker, May, 1954

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

B a n k

r

of

T ulsa
BohÁ.

William G. Sinclair, pioneer Cleve­
land, North Dakota, banker, died re­
cently. He was 84 years old.
Mr. Sinclair was the former cashier
of the First State Bank, Cleveland,
where he started his banking career in
1916.

F

65

North Dakota Bankers
Convention Program
T w o - D a y A n n u a l M e e t in g W ill Be H e ld
F r id a y a n d S a t u rd a y , M a y 2 1 st a n d 22nd, in G ra n d F o rk s
O M P L E T E details of the 1954 annual convention of the North Dakota
Bankers Association have been announced and the program shows a
full schedule of events for the two days, with several prominent speak­
ers to appear on the platform. The convention will be held Friday and Sat­
urday, May 21st and 22nd, in Grand Porks. Presiding will be Sharpe Pruetz,
president of the North Dakota Bankers Association, and cashier, K ulm State
Bank of Kulm.

C

Registration desks will be maintained all day Friday, May 21st, at Dacotah
Hotel, and Friday evening and Saturday morning at the Grand Forks Country
Club.
A special entertainment feature for the ladies will be attendance at the
North Dakota University Follies on the university campus Friday evening.
The m en’s annual stag takes place the same evening. Transportation for the
ladies to and from the campus will be provided. Cars will be available for
transportation to and from the Grand Forks Country Club Friday evening and
during Saturday.

SH ARPE PR U E TZ
P resident
North Dakota Bankers A ssocia tion

The executive council will hold a breakfast meeting in the Ryan Hotel in
Grand Forks at 9:00 a. m. Sunday, May 23rd.
The complete program follows:

Friday, M a y 21st
10:00 A .M . to 6:00 P.M., Registration, Dacotah Hotel
P.M.
2:00

Business Session— Dacotah Hotel, President Sharpe Pruetz, presiding.
Address— “ Credit Life Insurance,” Theo.
Central Life Insurance Company, St. Paul.

Sanborn,

president,

North

Committee Reports:
Short Course Agricultural Committee— Edw. L. Olson, First National
Bank, Grand Forks, chairman.
Junior Banking School— B. P. McDermott, First National Bank, Grand
Forks, chairman.
(Turn to page 66, please)
E V E R E T T D. R E E S E
President
A m erican Bankers A ssocia tion

TH EO. SANBORN
President
North Central L ife Insurance Company


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Federal Reserve Bank of St. Louis

D R . E A R L L. B U T Z
Head, D epartm ent o f A gricu ltu ral
E con om ics, Purdue U niversity

GU Y K ID D O O
V ic e president
F irst N ational Bank o f C hicago

N o rth w e st e r n Banker, M a y ,

1954

66
Advertisem ent

tex
^

North Hnkntn
"it oil
ofH onor" Han
It is an honor to be listed among the H O N O R ROLL BANKS. It indicates that the
bank has SURPLUS and UNDIVIDED PROFITS equal to or greater than its capital
T h e banks listed on this page are som e o f the outstanding “ H on o r R o ll” Banks in North
Dakota.

B y careful m anagem ent and sound banking th ey have achieved this enviable

position.

Th ese banks will be especially glad to handle any collections, special credit

reports or other business in their com m u nities w hich y o u m ay entrust to th em .

C orre­

spondence is invited.
TOWN

BANK
Bismarck ........................... The Bank of North Dakota............. ................
Edgeley ............................. Security National Bank
Fargo ..................................First National Bank & Trust.................. .......
G ilby . ................................ First State Bank..................................................
Grand Forks ................. Red River National Bank
Lankin
..................Citizens State Bank. ................... .

Steele..................................Bank of Steele.................... ........
Sterling ........................... State Bank of Burleigh County.

OFFICER
CAPITAL
.H. C. Bowers..... ............ ...............$2,000.000
.E. G. Bloedow..... ............................
25,000
J. W. Kuppich.... ........................... 600,000
0. B. Graff..........
25,000
.A. K. Simpson.... ....... ....................
250,000
R. F. Vorachek.... ...........................
30,000
C. H. Erbele....... ...........................
50.000
,G. Heitman ....... ...........................
50,000
J. L. Symington.. ...........................
50,000
F. H. Ellwein..... ...........................
40.000
.E. A. Wentz....... ...........................
75.000
,H. E. Wildfang.. ...........................
50,000
C. E. Fodness..... ...........................
25,000

N orth Onhotu Convention

9:45

(Continued from page 65)

4:00
8:00
8:30

Address of W elcom e — Oscar
Lunseth, mayor, Grand Forks.
Response — C. O. Thompson,
Underwood, N o r t h
Dakota,
vice president, North Dakota
Bankers Association.
Appointment of Committees.
President’s Address — Sharpe
Pruetz, cashier, K ulm State
Bank.

Registration.

Report of Agricultural Com­
mittee— Fred A. Irish, chair­
man, and introduction of Le­
roy Pease, secretary, Greater
North Dakota Association.

Convention Greetings

Report of Committee on Re­
vision of Dues— A. C. Idsvoog,
president,
Grafton
National
Bank, chairman.

For over half a century the Red River National Bank
in Grand Forks has worked hand in hand with fellow
members of the North Dakota Bankers Association.

Report of Committee on U. S.
Savings Bonds— E. D. Saltzman, president, First National
Bank, Bismarck, chairman.

We look forward to seeing you at our State Convention,
and we hope that you will find time to visit us at the bank.
P.M.
12:15

R IV E R

N A T IO N A L

B A N K

r t h w e s t e r n B a n k e r , M a y , 19 5 4
Digitized forN oFRASER
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Stag Luncheon— Grand
Country Club.
Ladies’
tel.

GRAND FORKS, NORTH DAKOTA
M em ber Federal Deposit Insurance Corporation

A ssem bles —
Kulm , North

Invocation — Rev.
Harry
P.
Sweitzer, pastor, First Presby­
terian Church, Grand Forks.

S a tu r d a y , M a y 22nd

R E D

y

Dakota, president, North Da­
kota Bankers Association, pre­
siding.

Public Relations Committee — Lee M. Stenehjem, First International
Bank, W atford City, chairman.
Bank Management Committee— L. W . Anderson, Red River National
Bank, Grand Forks, chairman.
Soil Conservation Committee— Calvin Lehr, First State Bank, Gackle,
chairman.
Adjournment.
Stag Smoker and Entertainment at Grand Forks Country Club on Road
No. 2, east of East Grand Forks.
Ladies’ Entertainment N DU Follies— Student Building, at North Dakota
University. Transportation available at Ryan Hotel at 8:00 p.m.
All Sessions W ill Be Held at Grand Forks Country Club

A.M .
9:00

Convention
Sharpe Pruetz,

SURPLUS
PROFITS
$3,300,000
139,000
975,000
172,618
418,000
156,291
92,000
105,000
125,000
114,600
121,000
121,000
39,000

2:00

Forks

Luncheon— Ryan

Ho­

Convention
Reconvenes—
Grand Forks Country Club.

y

North Dakota News
Election of Officers, American
B a n k e r s Association — Earl
W eydahl, Killdeer State Bank,
and vice president, A .B .A . for
North Dakota, presiding.

67

(iUf- Were H o f ‘M i l "about Correspondent Banktariff ![)

Ijouk Looking at

Election of Officers, North Da­
kota
Bankers
Association —
Sharpe Pruetz, president, pre­
siding.

HI I SUM Dollar

Address — Everett D. Reese,
president of American Bank­
ers Association, Newark, Ohio.
Address— “Oil and Banking,”
Guy Kiddoo, vice president,
First National Bank, Chicago,
Illinois.
Address — “A n A lert Banker
Takes a New Look at Stocks,”
R. B. Rathbun, partner, Harris-Upham, and manager, Min­
neapolis office.
Unfinished Business.
7:00

Dinner— Grand Forks Country
Club, M. M. Oppegard, master
of ceremonies; p u b l i s h e r ,
Grand Forks Herald.
Address — Dr. Earl
Purdue University.
Dancing.

L.

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Butz,

CHEMICALS

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m ai

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. Md Î2 1 Pi VERSIFIED !
Bu

M a n h a tta n C a sh ie r
Norman Mulder, formerly of Boze­
man,
Montana,
has
been elected
cashier of the Manhattan State Bank,
Manhattan,
Montana,
it was
an­
nounced recently following a board of
directors meeting.

s in e s s

[)o Y ou k n o w
...-from the show me' state of Missouri. As
an ex-national Bank examinet, he can put a
microscope on a deal with the best of'em
He'll help your account and business grow
Hobby ? ... Gardening , of course !

O p e n H o u se
The Yellowstone Bank of Columbus,
Montana, held an open house recently.
The event marked the end of one oper­
ation and the beginning of another in
amplified quarters, modernized to give
improved customer service.

C re d it M e e tin g
The Montana Bankers Association
held an agricultural credit conference
at Montana State College, Bozeman,
Montana, recently. Nearly 125 bank­
ers, county agents, ranchers and oth­
ers interested in credit attended the
conference.


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F IR S T

f NATIONAL BANK & TRUST CO.
OF TULSA ..Verniet F.B.LC.
N o r t h w e s t e r n Banker, M a y ,

1 95 4

68

COMPLETE CORRESPONDENT FACILITIES

COMPLETE CORRESPONDENT FACILITIES • COMPLETE CORRESPONDENT FACILITIES

• COMPLETE CORRESPONDENT FACILITIES

•

•

COMPLETE CORRESPONDENT FACILITIES

COMPLETE CORRESPONDENT FACILITIES

•

•

COMPLETE

COMPLETE

CORRESPONDENT

CORRESPONDENT

FACILITIES

FACILITIES

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

*

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

N o r t h w e s t e r n B a n k e r , M a y, 1954

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69
They will finance a new elementary
grade school building, addition to an­
other grade school, and an addition to
the high school.

60th Y e a r

M a n a g e m e n t C o n fe re n c e
The Nebraska Bankers Association
recently announced that this year’s
Bank Management Conference will be
held June 9th, 10th and 11th. The co­
sponsors are Doane College and the
Department of Banking, State of N e­
braska.
On this year’s program, in addition
to workshop sessions, speakers and
panels, one evening will be devoted to
entertainment. The conference will
open at 10:30 a.m. W ednesday, June
9th, and close at noon on Friday, June
11th.
The Committee on Bank Manage­
ment Conference is as follow s: George
W . Taylor, cashier, McDonald State
Bank, North Platte, chairman; Harold
Deitemeyer, president, First National
Bank, Beatrice; Richard Adkins, cash­
ier, Osmond State Bank, Osmond; B. M.
DeLay, cashier, D eLay National Bank,
Norfolk;
Russell Loring, assistant
cashier, Live Stock National Bank,
Omaha; A1 Riley, vice-president, Daw­
son Bank, Dawson; J. V. Johnson, Jr.,
cashier, Johnson County Bank, Tecumseh; M ax Schneider, assistant vice
president, First National Bank, L in ­
coln. These men will preside at vari­
ous conference sessions, as will the
president of the bankers association,
Edward Huwaldt.

Issu e d C h a rte r
J. F. McLain, director of the Nebras­
ka Department of Banking, has issued
a charter to the American State Bank
at Homer, making 291 state chartered
banks.
Starting of the new bank will result
in liquidation of the H om er Cooper­
ative Credit Association reducing the
number of credit unions to 50.
The new bank will have an author­
ized capital of $50,000 and a paid-up
capital of $37,500. Frank R. Mares, of
Niobrara and Homer, is the principal
stockholder.

who just completed their second an­
nual tour of farms in that territory.
His outlook on cattle prices was prom­
ising. He outlined reasons w hy prices
should hold their own or take an in­
crease.
“Valley
Countians
can
consider
themselves lucky,” Mr. Shonsey stated,
“since they can keep feeding while
others go broke. They have the cheap­
est feed available— pasture grass.”

Open house was held by the Com­
mercial Bank of Nelson, Nebraska, on
April 10th in observance of its 60th
anniversary. It is the oldest banking
institution in Nuckolls County.
J. B. W ehrm an serves as president
with L. J. W ehrm an, vice president;
J. F. Murphy, cashier, and Lee Clabough, assistant cashier.
The bank building has recently been
remodeled.

J a m e s B. W e h rm a n
James B. W ehrm an, president of the
Commercial Bank of Nelson, Nebras­
ka, died recently. Mr. W ehrm an, 87,
had been president of the bank for the
past 43 years.

A s s is t a n t C a sh ie r
The officers and directors of The
Bank of W ood River, Nebraska, an­
nounce the election of W ilbur J. McCumber to assistant cashier.
Prior to coming to W ood River in
September of 1953, Mr. McCumber was
associated with the Overland National
Bank in Grand Island.

C o n se rv a tio n A w a r d s
Glenn W eichel of Plymouth, Nebras­
ka, was one of three Jefferson county
farmers to receive awards for soil
conservation work in 1953 from the
First National Bank at Fairbury. The
awards were presented to Mr. W eichel
and the other two winners, Maurice
W ard of Powell and Richard Stefan of
Diller, at a program in Fairbury.

Bank Buys Bonds
Fred H. Kolterman, president of the
W ahoo, Nebraska, board of education,
announced that the First National
Bank of W ahoo bought the $243,000 in
school bonds which were voted at a
special election.

C a rl A . P e d e rse n
Carl A. Pedersen, 66, of Omaha, for­
mer president of the Hartington, N e­
braska, State Bank, died recently. He
suffered from a heart ailment.
He had been employed by an insur­
ance firm in Omaha.
Survivors include his widow, Char­
lotte; three sons, Clement B. and
James W ., both of Omaha, and S/Sgt.
Donald E., Alexandria, Virginia, and a
sister living in Denmark.

H e a d s C om m ittee
Joe Fuhr, assistant cashier of the
Beatrice National Bank, has been ap­
pointed chairman of the Beatrice, N e­
braska Chamber of Commerce civic
affairs committee for the coming year.
Mr. Fuhr is the retiring president of
the Junior Chamber and has served
on the Chamber of Commerce agricul­
ture committee for the past three
years.
His committee handles the civic de­
velopment projects of the Chamber’s
program.

itank ISviriirtls Fanners

S p e a k s to F e e d e rs
“ The golden age of agriculture is
still to be seen,” John Shonsey, vice
president of the Omaha Livestock Na­
tional Bank, predicted at the Central
Nebraska Stock Feeders banquet in
Ord, Nebraska.
Mr. Shonsey spoke to 250 feeders


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Federal Reserve Bank of St. Louis

AT THE SPEAKERS TABLE at the fifth annual Soil Conservation Recognition ban­
quet, sponsored by the American National Bank, Sidney, Nebraska, seated third from the
left is D. W. Jorgenson, vice president, and fourth from the right, A. J. Jorgenson, pres­
ident of the bank. With 140 in attendance, speakers of the evening were H. V. Bobst,
conservationist from Lincoln, and Max Coffee, farm editor of the Omaha World Herald.
Seven farmers in that area were presented awards.
Northw estern

Banker, M a y ,

19 5 4

70
Willard D. Hosford, Jr., has been
named a member of the board of di­
rectors of the Northwestern Bell Tele­
phone Company.
He is manager of
the John Deere Plow Company at
Omaha.
He is a director of the Omaha Na­
tional Bank, the W ashington County
Bank, Blair, Nebraska, and of Omar
Baking, Inc.
* * *

O R K M E N have been razing the
Medical Arts Garage preparatory
to building an addition to the Omaha
Branch of the Federal Reserve Bank
of Kansas City at 17th and Dodge
Streets. The garage adjoins the bank
on the west.
A five-story building will be added
to the bank structure, with ultimate
plans to make the building nine
stories.
L. H. Earhart, special representative
of the bank and its managing direc­
tor for years until his recent retire­
ment, said the new wing is “neces­
sary to keep pace with the industrial
growth of Omaha and the agricultural
growth of the state.”
In 1925, an average of 35,000 checks
a day were cleared through the bank.
Today, a normal day sees 130,000
checks cleared. The all-time high for
one day was January 5th this year,
when 194,738 checks were cleared.
“During the war, the bank was do­
ing business at four other places be­
sides the bank building and we still
are forced to use other locations,” Mr.
Earhart said.
The main vault will be doubled in
size, the directors’ room enlarged, a
cafeteria added, and protection for
handling securities will be increased.
The new building will include a
pistol range for guards.
The branch serves Nebraska and
W yom ing.
The garage property was purchased
in 1950, but the operator’s lease did
not expire until December 31, 1953.
* * *
Northern Natural Gas Company of
Omaha proposes to sell a new issue
of debentures to redeem the 4% per
cent debentures issued last June.
Holders of the 4% per cent debentures
will receive the redemption price of
$106, along with accrued interest to
date of redemption.
Northern Natural also filed a p p l i ­
cation with the Nebraska Railway
Commission for permission to issue
365,400 new shares of common stock.
It proposed to offer present stockhold­
ers one additional share for each nine

W

o r t h w e s t e r n B a n k e r , May, 1954
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Federal Reserve Bank of St. Louis

held, with the sale scheduled for May
or June.
Treasurer H. H. Siert said that the
common stock issue is expected to
raise about $13,000,000.
W ith the
proceeds from the sale of the deben­
tures the total will be used for 1954
construction, along with $15,700,000 in
company funds.
* * *
Leo A. Daly, Jr., head of an Omaha
firm of architects, is a new director of
the United States National Bank of
Omaha, President Ellsw orth Moser
announced.
Mr. Daly, 36, was born at Omaha

L E O A. D A L Y , JR.
B ecom es d irector

and attended Creighton University.
He is a graduate of the Catholic Uni­
versity of America School of Architure and is a director of the American
Institute of Architects. He is a m em ­
ber of His M ajesty’s Council of AkSar-Ben, Omaha civic organization.
* * *
The gross estate of Robert H. Gar­
rett, Omaha investment broker and
real estate dealer who died in Febru­
ary, 1953, was $268,317, according to
county court records.
His wife was willed $71,000 and a
son and daughter $63,667 each.

Most of Omaha’s business indicators
in the first quarter of 1954 were ahead
of the same months of 1953, a record
year.
One happy decline was noted, a
drop in unemployment.
Building permits were up 73 per
cent.
Bank debits, considered a reliable
barometer of general business, were
nearly 9 per cent higher. Postal re­
ceipts and bank clearings were 5 per
cent higher.
During March, bank clearings of
$767,940,910 represented a gain of 10.1
per cent over the same month last
year.
Bank debits of $721,977,696
were up 12.7 per cent.
* * =t=
The United States National Bank of
Omaha has been given permission by
the city council to set up sidewalk
banking facilities along Farnam Street
west of Sixteenth.
The council previously had granted
the same privilege to the Omaha N a­
tional Bank for Seventeeth Street
north of Farnam.
A ll downtown banks are expected to
be given similar permission for side­
walk or “snorkel” banking facilities.
The sidewalk “window s” should re­
lieve traffic congestion by cutting
down the number of motorists who
have to cruise around for parking
space to do a bank errand, bank offi­
cials stated.
John Lauritzen, a vice president of
the First National, said that bank also
has plans for “snorkels” on both Six­
teenth Street and Farnam Street.
There will be curb booths at which
motorists can make deposits. Tellers
sit beneath the sidewalk and can see
the customers by mirror and hear
them by loudspeaker.
* * *
Mayor Glenn Cunningham of Oma­
ha, who had announced that he would
not seek re-election, has been named
Nebraska Director of United States
Savings Bonds sales, effective May
15th, at a salary of $9,600 a year.
Wade R. Martin, Omaha banker, is
volunteer state chairman of bond
sales.
Mr. Cunningham succeeds Leland

OMAHA NEWS . . .
(Turn to page 73, please)


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Federal Reserve Bank of St. Louis

71

If it pertains to livestock . .
W e can serve you.

Northw estern

Banker, M a y ,

19 5 4

72

S

of First National
Bank took action in a special

tockholders

meeting April 26th on a board of
directors proposal to increase the capi­

Q

u a

.

83

tal stock of the bank from $1,650,000
to $2,000,000.
Also proposed was an increase in the
bank’s surplus account from $1,415,-

ajc L

'Ij& a J t.

W e are looking forward
to se e in g you at the
Nebraska Bankers Bank
M a n a g e m e n t C o n fe r ­
e n c e , D o a n e C o lle g e ,
Crete, Nebraska, on June
9th, 10th, and 11th.

THE FIRST NATIONAL BANK OF LINCOLN
10th and O Streets

Lincoln, Nebraska

Member Federal D eposit Insurance C orporation

o r t h w e s t e r n Banker, May, I954
Digitized for NFRASER
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

000 to $1,500,000. The increase in cap­
italization, the increase in surplus ac­
count, plus estimated undivided profits
brings the bank’s total capital funds
to slightly more than $4,000,000.
In recommending the proposal, di­
rectors pointed out the desirability
for the bank’s increased capitalization
to keep pace with the growth of its
deposits and the financial needs of the
community.
* * *
A. W . Griffen, vice president and
trust officer of Continental National
Bank of Lincoln, was the speaker at
a recent meeting of the South Platte
United Chamber of Commerce meeting
in Beaver City.
* * *
A Lincoln television firm has named
Byron J. Dunn, president of National
Bank of Commerce, as trustee and
temporary custodian of one of its
channels it has offered to the Univer­
sity of Nebraska. The firm has asked
the Federal Communications Commis­
sion to approve its turning over the
channel to Mr. Dunn, who would op­
erate it until the university is able
to acquire its facilities.
* * *
Two Lincoln bank presidents. Byron
Dunn of National Bank of Commerce
and Burnham Yates of First National
Bank, were among the m any persons
who paid last respects to the late N e­
braska senator, Dwight P. Griswold,
him self a former banker.
Senator
Griswold, who died April 12th, was
one time clerk and cashier in his
father’s bank at Gordon, Nebraska.
Later, he bought controlling interest
in the Gering National Bank at Gering
and became chairman of the board of
the First National Bank of Gordon,
a position which he held at the time
of his death.
*
* *
Lincoln’s six banks showed an in­

►

1

V

-T

>

>

F

crease in total deposits, loans and as­
sets at the end of the first quarter of
1954. Totals from all banks show de­
posits of $141,551,684 at the end of
the quarter, compared to $138,936,845
for the same period in 1953. Loans
>were up to $40,824,615, compared to
$40,282,714, and assets reached $153,378,405, compared to $148,114,589.
* * *
A slight drop in deposits and assets
as compared to December 31, 1953, was A
described as the usual “seasonal”
slump coming from a lack of farm in­
come at this time of year and the pay­
m ent of income taxes.

BANKS
49

Y E A RS O F C O N F I D E N T I A L

D IG N IF IE D

SE R V IC E

ilir (OlUiUliaMrlj

<

C H A R L E S E. W A L T E R S C O .
1313 FIRST N A T I O N A L B A N K B UI L D I N G

O M A H A , NEBR.

y

Nebraska News
It was generally agreed that busi­
ness looked good and there is no rea­
son to look for any decline. One bank­
er felt the increase in deposits over a
year ago was the result of decreased
retail buying but was no cause for
alarm.
H
=

*

H
=

Lyle Stoneman, vice president of
First National Bank, attended the an­
nual meeting of the Independent
Bankers Association in Detroit the
last week in April.
* * *
Myron Weil, vice president of N a­
tional Bank of Commerce, participated
in the National Resources Conference
in Omaha in late April and early
May.
H:

*

*

Herb Swedburg of National Bank of
Commerce attended the Investment
Bankers Association school in Phila­
delphia in mid-April.
* H
: *
Scores of bankers from Lincoln and
eastern Nebraska gathered in Lincoln
for the annual meeting of Group 1,
Nebraska Bankers Association. Dur­
ing the conference the group heard
addresses by Clay Stackhouse, produc­
tion adjustment administrator of the
Department of Agriculture, and Mi-


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Federal Reserve Bank of St. Louis

ehael MacDougall, the “card detec­
tive.”— End.

OMAHA

NEW S . . .

(Continued from page 70)

R. Hall, who resigned after more than
10 years with the savings bond divi­
sion, including seven years as state
director.
* * *

73

Mrs. Padberg has been employed by
the bank for 26 years. For the past
10 years her work has been in the
stock transfer section of the trust
department.
The members of the Tw enty-Five
Year Club and the employes of the
trust department of the United States

W o rk on the last 153 ungraded
acres of the 315-acre tract of the
Omaha Industrial Foundation was to
start as soon as weather permitted,
according to President John F. Merriam of the Foundation.
The sites committee includes Dale
Clark, chairman of the board of the
Omaha National Bank, who is chair­
man of the group.
The resources committee includes
James P. Lee, former banker; Ells­
worth Moser, president of the United
States National Bank, and the V ery
Rev. Carl M. Reinert, president of
Creighton University.
H
= *

*

Mrs. Catherine Padberg is the first
woman staff member of the United
States National Bank of Omaha to re­
tire under the bank’s retirement pro­
gram.

Mrs. Catherine Padberg, retiring from
the United States National Bank, Omaha,
after 26 years, is shown with Ellsworth
Moser, president, left, and John L, Eddy,
assistant vice president in charge of per­
sonnel, receiving her first pension check
and certificate of retirement.

the lights burn bright ...
to speed up our Correspondent B a n k ’s items

The Central’s
Nile Transit Service
Deep into the night our Nite Transit force sorts and processes remit­
tance letters, quickly and efficiently. This means reduced clearance
time . . . faster check dispatch to destination .. . and shorter collec­
tion time for our correspondent banks.
Join the Central’s Correspon­
dent Banks now using this fast
Nite Transit Service. Call or
write for our self-addressed
remittance letters.

TH E

EN TRA L BA N K
& T R U S T CO.
15th and Arapahoe Streets,

Denver, Colo.

Northw estern

Banker, M a y ,

19 5 4

74

Nebraska News

National Bank honored her at a recent
gathering and presented her with a
set of luggage.
* * *
The gross estate of Mrs. Thomas L.
Davis of Omaha, wife of the former
president of the First National Bank,
was $370,997.
The amount taxable
after deductions was $231,739.
Mrs, Davis died in December, 1952.
* * *
The estate of J. Francis McDermott,
former senior vice president of the
First National Bank of Omaha, was
set at $98,428 for tax purposes. Mr.
McDermott, who was King of Ak-SarBen in 1951, died in August, 1953.
A total of $93,624 was willed to
Mrs. McDermott, the former Em m a
Nash, who is the chief beneficiary.

T A m Ú ¿/lW A L ts¿ A ¿ u

Ernest T. Tanner of the First N a­
tional Bank of Omaha is the new
treasurer of the O m a h a
Ad-Sell
League, civic group which sponsors
weekly lectures.
=)= *
President E. F. Pettis of the Omaha
Chamber of Commerce, a former
banker, led a delegation to an area
conference sponsored by the United
States Chamber of Commerce and L in ­
coln Chamber in Lincoln recently.
Others who attended from Omaha
included A. E. Stoddard and James
H. Moore.
* * *
The First National Bank of Chicago
was apparent low bidder on $2,494,000
of 5% to 8 V2 year Omaha city bonds.
The firm offered interest at 1.5 per

X >^’

IOW A AND NEBRASKA MUNICIPAL BONDS
Public Utility, Industrial, Railroad & Corporate Securities

C E N T R A L

R E P U B L IC

C O M P A N Y

INVESTMENT BANKERS

CHICAGO 90, ILLINOIS
DES M O I N E S

OMAHA

H A R O L D R. C L E M E N T S
V i c e Pres. & R es. Mgr.
IN S. E X C H A N G E B L D G .

H A R R Y R. G R E E N W A Y
V i c e Pres. & R es. Mg r.
FARNAM BLDG.

M EMBERS M ID W E S T STOCK EXCHANGE

O n

J lin c o ln —

"lite

G < w O in e * t t a l —

cent, with a $8,890 premium.
That made the net interest 1.45333
per cent, or a total of $276,845.
Nine firms submitted bids.
The
First National of Chicago was repre­
sented in Omaha by the Central Re­
public Company and the National

Company.
The bonds are for the radial high­
ways, the new City Auditorium, sew­
ers and street resurfacing.
* * *
Sale of a $6,000,000 bond issue for
improvement of the Omaha water sys­
tem was approved recently by direc­
tors of the Metropolitan Utilities Dis­
trict at Omaha. Bids were to be sub­
mitted by May 5th.
A m ong the projects in the construc­
tion program is a new 25,000,000 gal­
lon reservoir.
The 1954 bond series will be the
second issued in M U D ’s $12,000,000
water construction program.
In 1953, the district sold $3,350,000
of bonds.— End.

K e a rn e y M e e tin g
Sixteen banks in the Central N e­
braska area were represented at a
meeting in Kearney of the Central
Conference of the National Associa­
tion of Bank Auditors and Comptrol­
lers.
Speakers for the meeting were Ivan
Lange and Robert J. Burford, repre­
sentatives of the U. S. Fidelity and
Guaranty Company of Omaha, who
discussed bonds and security.
Joe Titus, Holdrege, president of the
group, presided at the dinner meet­
ing held at the Fort Kearney Hotel.

Immediate and personal attention
to your requirements
in Nebraska's Capital City

C o n t in e n t a l N a t io n a l

O p e n H o u se
The First National Bank of Friend,
Nebraska, celebrated its 75th birthday
at an open house when the newly re­
modeled quarters were opened for in­
spection.
By the year 1911, the business had
grown to such proportions that it was
found necessary to build a new build­
ing. Now the old brick structure has
been torn down, and the present fire-

YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE, VAULT AND
TIMELOCK EXPERTS

L IN C O L N
Member Federal Deposit Insurance Corporation

F.-JE.

D A V E N P O R T

&

C O .

OM AHA

Scarborough’s Loss

Prevention program will save your

bank many headaches and many dollars. It is yours
along with the broadest protection at the lowest cost.

N oFRASER
r t h w e s t e r n B a n k e r , May, 1954
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|

gli Scarborough &
*^s C o m p an y "s“° " Co

|J

unselors to Banks

FIRST NATIONAL BANK BUILDING . CHICAGO 3, ILLINOIS . STate 2-432S

Nebraska News
proof building constructed in its place.
The supervision of the construction
was largely in the hands of Homer
Southwick.

R e b u ild D e p o s it o r y
The First National Bank’s night de­
posit box has been rebuilt and modern­
ized at McCook, Nebraska.
Executive Vice President H arry M.
Krogh said a mail chute was installed
to enable persons to deposit checks.
A key still will be needed for other
deposits, he said.

Virginia.
He was
Mrs. Richmond.
* *

accompanied

by

*

A n article by Milton Tootle, presi­
dent of Tootle-Lacy National Bank,
St. Joseph, appeared in the March
issue of Burroughs Clearing House.
Entitled “Public Relations in Day-byDay Banking,” it outlined the pro­
gram developed by Mr. Tootle, which
has been described in N orthwestern
B anker as it developed.
Mr. Tootle
said, “W h en I became president of
this institution in 1946 it still cher­

ished the frost bitten dignity that in
a bygone era was considered the only
possible attitude for a sound bank to
show the public.”
A more relaxed
manner has made more friends since
he began to put his program into
effect.
* * *

R. R. Calkins, chairman of the board
of directors of American National
Bank, and Benton M. Calkins, vice
persident and cashier, attended a fivecounty bankers’ meeting at King City,
Missouri.

St. J o s e p h
E A T E D F IG U R E ,” a piece of sculp­
ture worked directly in plaster by
Milton Tootle, Jr., vice president and
cashier of Tootle-Lacy National Bank
of St. Joseph, was sold by M id-Am er­
ica Artists Association to a Topeka,
Kansas, buyer for $70. The work was
one of about 150 pieces of art selected
from 99 entries for exhibit at the W il­
liam Rockhill Nelson Gallery of Art,
Kansas City.
Mr. Tootle began art
work during the war and has con­
tinued it as a hobby.
* * *

S

Macon Dudley, vice president of
First National Bank, is known to the
hunters and fishermen of the St. Jo­
seph territory. Recently he was elect­
ed president of Northwest Missouri
Sportsmen’s Association, an organiza­
tion devoted to the conservation of
natural resources.
* * *
J. M. Ford II, president of First
National Bank, and V. P. Meyer, as­
sistant vice president, attended a
meeting of the five-county bankers
association last month at King City,
Missouri.
* >t= *
George IT. Richmond, president of
American National Bank, has re­
turned from a vacation trip through


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Federal Reserve Bank of St. Louis

In Size
In Service
In St. Joseph

FIRST NATIONAL BANK
In S t. J o se p h , M o.

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

N orthw estern

Banker, M a y ,

19 5 4

76

Nebraska News

S id n e y C linic
Tips on meeting, understanding and
dealing with the buying public will
be given at a clinic to be held in Sid­
ney, W ednesday, May 26th, under the
sponsorship of the Chamber of Com­
merce and the American National
Bank.
The clinic will be divided into three
sessions.
In charge of the clinic will be B y­
ron Lopp, public relations director for

The Central Bank & Trust Company
of Denver, who has a broad back­
ground of experience in the field of
selling.

A V 'if it/ .4p p o in te d

Burt C o u n ty B a n q u e t
The Burt County, Nebraska, Bank­
ers Association recently sponsored
their annual 4-H banquet. Arthur
Behn, cashier of the First National
Bank, Lyons, Nebraska, was master of
ceremonies;

Chartered b y Congress 1890

The Company We Keep
H A R O L D R. B R O W N I N G
M r. B row ning was recen tly named a v ic e presi­
dent o f the U nited States N ational Bank, Om aha,
in the correspondent bank division .

Inter-State is p r o u d to b e k n ow n b y tbe
lo n g list o f banks w ith w h ich we have
corresp on d en t con n ection s. C onsult any

R e c o rd B o nd S a le s

on e o f these institutions. Y o u w ill find

Total sales of savings bonds during
March were the highest of any month
since the end of W orld W a r II in Ne­
braska.
Total sales for the first three
months were $41,419,552.09, or 43.9 per
cent of the 1954 quota.
W ith only
one-fourth of the year gone, and this
per cent of the quota achieved, N e­
braska should go over the top again.
Deuel county heads the list with
the largest per cent of quota, having
94.9 per cent. Here is the record for
the first quarter of the year:
Counties having 90 to 100 per cent,
one.
Counties having 80 to 89 per cent,
one.
Counties having 70 to 79 per cent,
two.
Counties having 60 to 69 per cent,
six.
Counties having 50 to 59 per cent,
23.
In addition, there are 19 counties
that have per cent of quota equal to
or above the state percentage of 43.9.

that Inter-State does everyth in g possible
to b u ild up the business o f ou r c o r r e ­
sp on d en t banks. Y o u ’re in vited to visit
us and see fo r y ou rself b o w w ell we can
serve you .

In

the

ter

-S

tate

LIVESTOCK EXCHANGE BLDG.

C jH z /ld O J i t Y

%.

//

N a t io n a l B a
I6TH.

AND

GENESEE

n k

STS.

J d O S { /U '

Member Federal Deposit Insurance Corporation

HO TEL

m a c

-fajdttwk.

û n the warm and sunny
GULF

OF

M E X IC O

Digitized forN FRASER
o r t h w e s t e r n B a n k e r . M a y , 19 5 4
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

G O L F , S W IM , R I D E ,
D A N C E , F IS H , P L A Y
Enjoy dancing and cocktails in the
beautiful Creole Room—dining in
true southern atmosphere in the
Colonial Room. E ntertain m en t
nightly. Golfing and fishing. Swim­
ming in private pool. Write to
E. E. Holschuh, Mgr., Hotel BiloxiMacArthur, Biloxi, Mississippi.

J o in s M a d is o n B an k
George Moehnert assumed his new
duties as assistant cashier of the
Farmers National Bank, Madison, Ne­
braska, recently.
He was form erly
employed at a local auto supply store.

BANKS

on°dUSOLD

A CO N FI D EN TIA L , PE R SO NA L SERVICE
F O U N D E D O N 25 Y E A R S E X P ER I E N C E

B a n k e r s S ervice C o m p a n y
HENRY H. BYERS, Prei.
Lock Bo« 143 S
DES M O IN ES 5, IO W A

N. B SHAFFER. V.P.
E G. UNTIEDT. V.P.
Lock B o i 1421
COLO RADO SPRINGS, COLO.

77

e I d w a re h o u

n9

Number F.W.5 1 1 4 5 ___

O FF IC E COPY
- N E G O T IA B L E R E C E IP T

e e pt

A

Date

germinal i#aref)ouöe Co.

5t. Paul, Minnesota
have received in storage for the account of
¿wing described property 1
^ s t o r a g e , handling

I

kered in accordance with its
Icharges due.

instructions and upon

ad eq uati
bond

coverage

th e w a y to p r o f i t a b l e b a n k l o a n s
Aiding both Industry and Agriculture, public
warehousing may be the answer for many of your
accounts.

Offices in Principal Cities
D e s M o i n e s Office
616 Em pire Bu ild in g
G e o r g e V. M icke lsen , District M g r .
2-1208

Field warehousing receipts provide the added se­
curity you will require for some of your most
valued customers.

O m a h a Office

A call or letter to our nearest representative will
bring to your attention the details of this expand­
ing service.

312 Electric Bldg.
R usse ll V. Peterson, D istrict M g r .
A t la n t i c 7190

ST. P A U L T E R M I N A L W A R E H O U S E C O

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

425

EAST

8 th

STREET

ST.

PAUL,

M IN N E S O T A

North western B a n k e r , M a y , 1954

N o r t h w e s t e r n B a n k e r , M a y , 7954

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Federal Reserve Bank of St. Louis

SIM PLE A S A B C '

. . . HERE IS HOW
WE INEREASER DUR
BANKING SERVIEE
To increase any business . . . this includes
banks, you must offer a wider and more
complete variety of service.

People like to

do business with a growing and aggressive
concern. This is where Live Stock National
conies in.

W e joined the increasing num ­

ber of banks who are taking advantage of
their complete correspondent service.
our

banking

service

is

better

and

Now
our

patronage is up . . . almost that simple.
Live Stock National s services include par­
ticipation in loans, investment service on
government bonds, 24 hour transit service,
operational

assistance

and

many

others.

Perhaps there is some way in which we can
serve you, too. W e would like to hear from
you. Just write or phone us.

NATIONAL BANK
O M A H A ,

N E B R A S K A

MEMBER OF FEDERAL RESERVE AND FEDERAL DEPOSIT INSURANCE CORPORATION

79
Meilike, N. K. Rosenberger, Sam W ise,
Don Eshelman, Frank Long, and Jim
Irish. This committee is to further
formulate plans and meetings to or­
ganize a bank for Altoona.
This bank is being planned for the
whole community and everyone will
be given an opportunity to purchase
shares in it.

Le n o x P ro m o tio n
W h itte m o re P re sid e n t
A t the regular meeting of the hoard
of directors of the Farmers State
Bank, W hittem ore, Iowa, Vic B. Perkins was named the new president.
Mr. Perkins moved up from the posi­
tion of executive vice president and

R. W . Zabel was elected president
of the First National Bank at Lenox,
Iowa, in a special meeting of the board
of directors of the bank recently. Mr.
Zabel, who has been cashier of the
bank, succeeds M. J. Spicer, who re­
signed as president and has been
elected cashier.

of the bank building. Business will be
transacted with a teller in a specially
built window across the sidewalk by
way of a two-way voice communica­
tor.

E. C. G o tsch
E. G. Gotsch, 77, president of the
Farmers
Savings
Bank,
Martelle,
Iowa, died recently.

N e w P o sitio n
Stanton E. Christie recently became
an employe of the National Bank of
Burlington, Iowa, as its farm repre­
sentative. Before accepting the posi­
tion he had been a sales representa­
tive for Northrup-King Seed Company
working out of Minneapolis.

Mr. Gotsch has been with the bank
since January 1, 1922, and has served
as president of the institution since
January 1, 1923.

C h a rle s V a n ic e k
Charles Vanicek, a director in the
Farmers Savings Bank, Traer, Iowa,
since January, 1936, died recently of a
heart ailment. He was 58 years old.

C lin to n Ele cts
Four new directors of the Iowa
State Savings Bank, Clinton, Iowa,
were elected at a meeting held recent­
lyThey are: L. J. Stotesberry, presi­
dent: Max C. Gisel, cashier; Edward
Stotesberry, vice president; and P. B.
Holleran.

C o n se rv a tio n A w a r d

V IC B. P E R K IN S
H eads W hittem ore Bank

cashier, which office he had held since
coming to the bank in December, 1950.
Perkins succeeds Frank Bestenlehner who held the position of president
for 44 years, until his recent death.

N o r w a y M e e tin g
The stockholders of the Benton
County Savings Bank, Norway, Iowa,
held their annual meeting recently, at
which the following officers were
elected:
H. D. Schloeman, president; John C.
Schulte, vice president; Prentiss G.
Folvag, cashier; Homer Monk, assist­
ant cashier, and Colleen Dyrland and
Pauline Kim m , bookkeepers.

C u rb S e rv ic e
The First National Bank of Du­
buque, Iowa, plans to give its cus­
tomers curb service, according to
plans revealed recently.
The city council has granted the
bank permission to install a “ snorkel”
unit next to the curb along one side


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

In W arren county, Iowa, recently
five soils conservation groups were
awarded cash prizes totaling $650, the
prizes a gift of the Peoples Trust and
Savings Bank of Indianola. The w in­
ner of the top prize, $200, was the Mt.
Hope group composed of 13 farmers
who till more than three thousand
acres. They had, in addition to prac­
ticing conservation on the farms, held
several grassy waterway and terracing
demonstrations.

A c c e p ts P o sitio n
The First National Bank of Sioux
Center, Iowa, announced recently that
Adelphos Te Paske has accepted a
position in the bank and will start
work there early this summer.

G ra e ttin g e r C e le b ra tio n
The Graettinger State Bank of
Graettinger, Iowa, recently observed
the 20th anniversary of its founding by
inviting its friends and patrons to take
part in their birthday observance. The
bank sponsored a free movie at a local
theatre, and held open house at the
bank.

A lt o o n a P la n s
A t a recent meeting in Altoona,
Iowa, people interested in organizing
a bank elected Frank Long, chairman,
and Jim Irish, secretary of the group.
A n organization committee was elect­
ed consisting of S. M. Hickman, John

1 0 5 4 J o tr a J ir o u p M o r t i t i tjs
G roup

M eetin g Place

Date

5
6
10
7

T uesday,
W ed n esday,
T hu rsday,
F rid a y,

M ay
M ay
M ay
M ay

4
5
6
7

4
8
3
2

T uesday,
W ed n esd ay,
T h u rsday,
F riday,

M ay
M ay
M ay
M ay

18
19
20
21

C o u n cil B luffs
N ew ton
Lake W a p e llo
In d e p e n d e n ce
D u h u que
M o n tice llo
C harles C ity
Storm Lake

N orthw estern

Banker, M a y ,

19 5 4

80

Iowa News

F o re stry M e e tin g
The Iowa Bankers Association’s for­
estry committee met recently with Dr.
George. Hartman, head of the forestry
department, and his colleagues, at
Iowa State College, Am es, Iowa.

Mr. Schnekloth was a director of the
Central Trust & Savings Bank, Eldridge, Iowa, and treasurer of the
American Mutual Insurance Company.

B a n k e rs M e e t

Kenneth J. Benda, of the Hartwick
State Bank, Hartwick, Iowa, was the
chairman of the meeting on behalf of
the association. The purpose of the
meeting was to promote the reforest­
ation of Iowa.

Members of the Hamilton County
Bankers Association were guests of
the Farmers Savings Bank of Strat­
ford, Iowa, at a meeting held recently.
New ly elected officers were George
Aden, president; R. L. Obe, vice presi­
dent; and Dick Desmond, secretary.

H u g o W . Sc h n e k lo th

B an k C o n stru c tio n

Hugo W . Schnekloth of Davenport,
Iowa, died recently after a several
months illness. He was 74 years old.

The Dallas County State Bank, Adel,
Iowa, has begun construction of a new
$75,000 bank building, it was an­

nounced recently by O. D. Ellsworth,
president.

N e w O fficer
The directors of the First National
Bank, Sioux City, announced that
Merle H. Johnson of Des Moines has
been appointed to the post of trust
officer in the bank. Mr. Johnson is a
native Iowan, born in Marshalltown,
Iowa, in 1908, where he attended pub-

J

V

nr

SERVING EASTERN
IOWA YEARS

y

8 4

X

. . .

am t aULL

Speed

M E R L E H. J O H N S O N
H eads trust department

lie schools. He is an alumnus of Iowa
State College (1928) and also the Uni­
versity of Iowa, where he graduated
from the College of Law in 1934.
After graduation, he practiced law
in Des Moines until 1943, when he
entered military service and served
there as a special agent in the Counter
Intelligence Corps until his discharge
in 1946. Since 1947, he has been an
attorney on the staff of the chief at­
torney in the Des Moines office of the
Veterans Administration, supervising
guardianship and estate matters.
J. T. Grant, president of the First
National Bank, said that public inter­
est in trusts and estate planning, part­
ly due to high tax liabilities, has added
heavily to the volume in the trust de­
partment and necessitates expanding
those facilities and this addition to the
staff.

Accuracy
Dependability
Friendliness
at the . . .

y

y

y

A n n iv e r s a r y

FIFTH AVENUE
SOUTH-226*

NATIONALBANK
C £ ^ n £ c r t, ß c m r n

M e m b e r o f The Federal D e p o sit In su rance C o rp o ratio n , W a sh in g to n , D. C.
$10,000 — M axim u m In su ra n c e fo r E ach D e p o sito r — $10,000

N o FRASER
r t h w e s t e r n B a n k e r , May, 1954
Digitized for
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

The First National Bank of Center­
ville, Iowa, recently marked its 90th
anniversary. In doing so it had the
distinction of being the third oldest
national bank in the state of Iowa.

<

M a d r id Bank
The ground was
the basement and
City State Bank
being constructed

broken recently for
footings of the new
building, which is
in Madrid, Iowa.
JL

81

X

Safekeep in g Service
Our modern facilities are available to
you for the safeguarding and servicing of
your securities.

Y o u ’ll find no

greater dependability anywhere.

T

Des Moines, Iowa


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Federal Reserve Bank of St. Louis

M em ber: Federal Deposit Insurance Corporation
Federal Reserve System

-

Norfhw estern

Banker, M a y ,

19 5 4

82

Iowa N e w s

J o in s C a rro ll Bank
Soren S. Kudsk has been elected as­
sistant cashier of the Commercial Sav­
ings Bank of Carroll, Iowa, bank offi­
cials announced last month.
Mr. Kudsk will also be public rela­
tions, public service and advertising
officer for the bank.
Mr. Kudsk retired about two years
ago as manager of the J. C. Penney
Company in Carroll after building the
business to one of the top Penney
stores in the state in 25 years.
He has served a term as Carroll
county representative in the state leg­
islature and is a candidate for renomi­
nation on the Republican ticket in the
June primary election.

A s s o c ia t io n M e e tin g
The Iowa Corporate Fiduciaries A s­
sociation will hold its 6th annual con­
ference on Wednesday, May 12th, at
the Hotel Chieftain in Council Bluffs.
The association is composed of trust
officers of Iowa banking institutions
and other Iowa bankers interested in
fiduciary matters.
C. Ream Daughrity, vice president
of the Iowa Corporate Fiduciaries
Association and trust officer of the
Iowa-Des Moines National Bank, Des
Moines, will preside at the meeting
which will open at 10:00 a.m. in the
Hotel Chieftain ball room. The ad-

dress that morning will be given by
George H. Norton, vice president of
the Omaha National Bank, Omaha,
Nebraska, who will speak on “Prudent
Man Investing.”
After the business meeting and
lunch, E. H. Spetman, president of the
Iowa Corporate Fiduciaries Associa­
tion, and vice president of the Council
Bluffs Savings Bank, Council Bluffs
Iowa, will preside over the afternoon
session. J. Brooks Corwine, assistant
vice president of Harris Trust and
Savings Bank, Chicago, will give the
afternoon address entitled “Trust De­
velopm ent.”
A fter a panel discussion and after­
noon trip to the Iowa power plant on
the Missouri River South of Council
Bluffs, a reception will be held fol­
lowed by a banquet in the Hotel Chieft a i n ballroom. Entertainment and
introduction of new officers are on
the evening program, and P. L. Stev­
enson, vice president of the First N a­
tional Bank of Chicago, will give the
evening address entitled “The Hum an
Side of the Trust Business.”

M rs. G ra ce Sp e tm a n
Mrs. Grace Spetman, 58, wife of E.
H. Spetman, Sr., vice president of the
Council Bluffs Savings Bank in Coun­
cil Bluffs, Iowa, died last month of
heart disease.

r

A

"BANKERS SECURITY'S
CREDIT LIFE PLAN

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WILL, LOAN and TIME SALES VOLUME. Write today for
complete information about the oldest and finest credit life plan.
We will also send you a copy of the LOAN BUILDER, which is
a real loan and time-sales building help.

BANKERS SECURITY LIFE INSURANCE SOCIETY
103 Park Avenue
New York 17, N. Y.

i

A R T H U R J. M O RR IS
GEORGE O LM STE D ,
Chairman o f the Board
President
F R A N K J. SCO TT,
H A R R Y O’ B R IE N ,
V ice Chairman o f the Board
V ice President and Treasurer
W. L. COBB,
E xecutive V ice President

J

SCARBOROUGH Associates Group Insurance Plan
has been selected by banks because it provides the most
complete benefits at lowest cost. It is a loyalty builder.

o r t h w e s t e r n B a n k e r , M a y , 1954
Digitized forNFRASER
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Federal Reserve Bank of St. Louis

B e gin N e w B u ild in g
Construction began last month on
a new one-story building for the Dal­
las County State Bank at Adel, Iowa.
The structure will be 44 by 82 feet,
with rough finish Roman brick exte­
rior. Thermopane glass will be built
into half of the two sides facing the
streets where the building is located.
O.
D. Ellsworth, executive vice pres­
ident, said the $75,000 building is to
be completed about October 1st.
It
will be completely modern through­
out, with larger space for lobby use,
larger and more convenient offices
and larger and more convenient vaults
and safe deposit boxes.

H a r r y J e n n in g s
Harry Jennings, long time and
prominent resident of Centerville,
Iowa, died recently. He was 78 years
old.
Mr. Jennings was vice president and
director of the First National Bank of
Centerville, and director of the Iowa
Trust and Savings bank there.

M e n g e s N a m e d P re sid e n t

Certainly Increased Our
Loan and Time Sales Volume"

1017 W alnu t Stree t
Oes Moin es 9. lowo

Survivors besides her husband are
three sons, E. H., Jr., auditor and as­
sistant cashier, Council Bluffs Savings
Bank; Richard and W arren, all of
Council Bluffs; two daughters, Mrs.
Richard Parsons of La Habra, Cali­
fornia, and Mrs. C. D. W ilson of New ­
ton; two sisters, Mrs. A. E. W augh
and Mrs. Edna Thompson, both of
Council Bluffs, and 14 grandchildren.

Joe Menges has been elected presi­
dent of the Alta Vista State Bank in
Alta Vista,
Iowa, succeeding Joe
Frantzen, who died last month. Mr.
Menges formerly was cashier. He is
presently serving as vice president of
the Iowa Bankers Association.
Other changes made by the board of
directors were the advancement of
Inez M. Daly from assistant cashier
to cashier, and the election of Paul
Hentges as assistant cashier. He was
formerly teller.
Mr. Frantzen, president of the Alta
Vista Bank since it was organized in
September, 1929, died at his home on
April 10th, after a lingering illness.
He had long been active in various
business affairs, having served on sev­
eral committees in the county, as well
as the bank board.

P R O V I D I N G G R O U P Lift, ACCIDEN.
TAL DEATH A N D DISMEMBERMENT,
ACCIDENT A ND SICKNESS, HOSPITAt
A N D SURGICAL BENEFITS

FIRST NATIONAL BANK BUILDING, CHICAGO 3, ILLINOIS

83

S ta te m e n t o f C o n d itio n
Apri l 15, 1954
RESOURCES

L IA B IL IT IE S

Cash and Due from Banks....... $128,624,140.86
U. S. Government Obligations.... 104,472,381.12
Other Bonds and Securities....... 31,519,178.42
Loans and Discounts.................... 167,530,034.02

Capital Stock ................................$ 5,000,000.00
Surplus ................................
18,000,000.00
Undivided Profits ..........
2,156,277.44
Reserve for Contingencies........ .
2,155,843.63
Reserve for Interest, Taxes, etc__
2,304,508.77
Income Collected but not Earned..
2,077,152.34
Letters of Credit and Acceptances
1,561,820.77
Bills Payable ..................
25,000,000.00
Deposits ..........
378,137,208.35

L e s s : R eserv e fo r Possible
F u tu re Losses ........................ ( — 2,225,509.97)

Stock in Federal Reserve Bank..
Customers’ Liability on
Acceptances ..............................
Income Earned but not Collected
Banking House ............................
Other R esources............................

690,000.00
1,561,820.77
1,081,601.82
3,000,878.68
138,285.58

Total Liabilities ....................$436,392,811.30

Total R esources.................... $436,392,811.30
United States Government and other securities carried at $82,177,882.11 are pledged to secure public
funds and trust deposits and for other purposes as required or permitted by law.,

D eW a i .t H. A n k e n y

T h o m a s L. D an iels

V ice President,

F. P eavey H effelfinger

President,

President,

Theo. Hamm B rew ing Co.

Archer-Daniels-M idland
Com pany
D onald C. D ayton

President and Treasurer,

F. H. Peavey and Co.
Clarence E. H ill
H arris U pham & Co.
F r a n k P. L eslie

The Strong Scott
M anufacturing Co.
D. J. S trouse

J am es F. B ell
Chairman, C om m ittee on
Finance and Technological
P rogress, General Mills, Inc.

B enton J. C ase
President,

Janney, Semple,
Hill & Com pany
C larence R. C h a n e y
E xecutive V ice President,

Orchestral A ssociation
o f Mpls., Inc.
G eorge B. C lifford , J r .
Treasurer, The Cream o f
W heat C orporation


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Federal Reserve Bank of St. Louis

President and
General M anager,

The Dayton Com pany
Stephen P. D uffy
President,

Our Own Hardware
Com pany
J o h n B. F aegre
Faegre and Benson
A ttorneys
President,

Minnesota & Ontario
Paper Co.
F r a n k T. H effelfinger

L ucian S. S trong

Retired

President,

H arold W . S w eatt

The John Leslie P aper Co.
Goodrich L owry

Chairman o f the Board,

E xecutive

V ice President

R obert F. P a c k
Chairman o f Board

N orthern States Pow er
Com pany
J oh n S. P illsbury
Director,

Chairman o f Board,

Pillsbury Mills, Inc.
J oseph F. R ingland

F. H. Peavey and Co.

President

M inneapolis-H oney well
R egulator Company
H arold H. T earse
V ice President and
General M anager,

Searle Grain Company
J. C ameron T homson
President,

N orthwest B ancorporation
V a le n tin e W urtele
Chairman o f the Board

Minnesota Paints, Inc.

Northw estern

Banker, M a y ,

19 5 4

84
sor, the Iowa National Bank, when he
retired in 1950 as assistant vice pres­
ident. He was in charge of the sav­
ings and safe deposit departments.
Mr. Hart was w ell known among
bankers throughout the state of Iowa.
He is survived by his widow and
seven sons.
In the annual A .I.B . speed contests
conducted last month at the Iowa State
Bank the following were winners:
Typing— Mrs. Hilda Robinson, Cen­
tral National Bank and Trust Com­
pany, $15 for first place.

W

INFIELD W. SCOTT, president

of Valley Bank and Trust Com­
pany, has been named finance chair­
man for Polk County by the Republi­
can state finance organization. Mr.
Scott has been active in party fund­
raising activities in past years.
* * *

Calvin W. Aurand, president of the
Iowa-Des Moines National Bank, was
a member of the Citizens for Eisen­
hower committee which met in the
W hite House last month with the
President. The committee is composed
of leading businessmen and other in­
dividuals.
* * *
Income tax collection offices report
dozens of unusual occurrences each
year, but one of the strangest in re­
cent weeks took place in Bankers
Trust Company in Des Moines.
A man attempted to cash an income
tax refund check at the bank but
could produce no personal identifica­
tion. W h en asked to step over to see
one of the bank’s lobby officers, the
man hesitatingly removed his upper
plate from his mouth and showed it to
the bank officer. Sure enough, there
was the m an’s name engraved in the
plate.
“ That’s good enough for m e,” re­
plied the officer and cashed the check.
* * *
Des Moines Chapter of American
Institute of Banking brought its cur­
rent year’s activities to a close last
month with the end of classroom
studies and social activities.
President Irwin Abram, vice presi­
dent of the Central National Bank and

Trust Company, announces the annual
Chapter dinner and dance will be held
at Des Moines Golf and Country Club
Tuesday, May 4. Election of officers
will take place during the day and
announced at the meeting, and prizes
will be awarded to winners of A .I.B .
functions.
W inners in the A .I.B . bowling
league were Iowa-Des Moines Forgers,
with Capital City Warriors second.
Paul Huelsbeck, Bankers Trust Com­
pany mortgage department, rolled high
individual game with 265; while Frank
Tamse, cashier of Capital City State
Bank, won high individual series with
673 and high individual average with
180.

Mrs. Freeda Smith has been elected
assistant cashier of the State Bank of
Des Moines, it was announced last
month by Lindley Finch, vice presi­
dent, following a board of directors’
meeting.
Mrs. Smith joined the State Bank in
April, 1952.
Prior to that time she
had been secretary-treasurer for sev­
eral years of the Old Grimes Canning
Company a n d assistant secretarytreasurer of the Beaver Valley Can­
ning Company, both of Grimes.
Mrs. Smith is working in the sav­
ings department of the State Bank at
the present time.
* * *

James F. Hart, 72, who retired from
the Iowa-Des Moines National Bank
in 1950, died at his home in Des
Moines last month. Mr. Hart had com­
pleted 53 years service with the IowaDes Moines National and its predeces­

th e Simplified
No M i n i m u m
B alance
C h e c k P la n

United States Check B ook Company
737 7 HOWARD ST.
o r t h w e s t e r n B a n k e r , M a y , 1954
Digitized forNFRASER
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Federal Reserve Bank of St. Louis

Adding Machine —Mrs. Pat Lowe,
Capital City State Bank, $20 for first
place.
Adding Machine— Nancy Nish, Cap­
ital City State Bank, $15 first place
prize for employes with less than two
years’ experience.
Money counting — Paul Griffith,
Bankers Trust Company, $15 for first
prize and $15 for second place in add­
ing machine contest.
Adding machine relay — Team of
Arnold B. Dressier, assistant cashier,
Don Prunty and Willard Dann, all of
Central National Bank and Trust Com­
pany.
* * *
Featuring nationally-known direct
mail experts, a Direct Mail Seminar
will be held in Des Moines, Tuesday,
May 11, at Hotel Savery.
This all-Iowa meeting is sponsored
by the Advertising Club of Des Moines.
Jack T. Watson, advertising supervisor
of Bankers Life Company, is chair­
man of the 1954 event.
A ll Iowa business men who are in­
terested in learning more about direct
mail advertising or who have direct
mail problems are invited to attend
the one-day meeting, according to W a t­
son. There is no registration fee; the
only charge will be for the noon
luncheon and afternoon refreshments.
The day’s program will begin at
10 a.m. with a display of the Direct
Mail Advertising Association’s “ Best
of Industry” direct mail campaigns.
A fter a noon luncheon, awards will
be presented to the winners of the
eleventh annual Direct Mail Day com­
petition. Then, the direct mail special­
ists will take over the program.
The panel of experts will discuss ef­
fective direct mail procedures and
answer questions during an “across
the table” session which will conclude
the program.
Anyone who plans to attend but
has not forwarded a reservation is
asked to write to Jack W atson at Bank­
ers Life in Des Moines, indicating the
number of persons from your organi­
zation who will attend.— End

85

A s a co rre sp o n d en t o f T h e N o rth e rn T ru st

Offer

your customers C o m p a n y

y o u c a n c a l l u p o n t h is b a n k ’ s f u ll

r a n g e o f s e r v ic e s . W e s h a r e w i t h y o u

the services o f

b a n k in g ,

fo r e ig n ,

tru s t,

bond

and

our

o p era­

t i o n a l f a c il i t i e s a n d e x p e r i e n c e t o h e lp y o u
s e rv e y o u r c u s to m e r s b e tte r, m o r e c o m p le te ­

T h e N orthern T rust!

ly .

I n a d d i t i o n , o u r c o r r e s p o n d e n t s e r v ic e s

in c lu d e : A d v ic e o n D a y - t o - D a y O p e r a tio n s ,
C r e d i t I n f o r m a t i o n , A s s i s t a n c e in t h e M a n ­
a g e m e n t o f In v e s tm e n t P o r tfo lio s , F a s t W ir e
F a c i li t i e s a n d m a n y o t h e r s . W r i t e o r p h o n e
us

today

fo r m o re in fo r m a tio n o n h o w w e

c a n a s s is t y o u .
T H

E

NORTHERN TRUST
C

O

50 South L a S a lle S tr e e t


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Federal Reserve Bank of St. Louis

M

P

•

A

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B O X N, C H IC A G O

•

T e le p h o n e F R a n k lin 2 -7 0 7 0

N e w York R e p r e se n ta tiv e : 15 B r o a d S treet, N e w York 5

Northw estern

Banker, M a y ,

19 5 4

Iowa News

86

Council BUuffs Host

A ft e r n o o n

•»
12:15

Luncheon— Hotel

12:20

Invocation — Reverend Phillip
Durham, pastor, First Chris­
tian Church, Council Bluffs.

Chieftain.

1:15

Call to Order — Charles W .
L a n g m a d e , vice president,
Council Bluffs Savings Bank,
Council Bluffs.

Y

b

W elcom e— W illiam M. Keenan,
mayor, city of Council Bluffs.
Observations and Introduction
of Guests— Charles W . Lang­
made.
Talk — Lee A. Holland, presi­
dent, Iowa Bankers Associa­
tion; executive vice president,
W ashington State Bank, W a sh ­
ington.

AERIAL VIEW of Council Bluffs where Group 5 meets on May 4.
O U N C IL B L U F F S, meeting place
for Group 5, Tuesday, May 4th,
is the ideal setting for a convention.
W ith its excellent hotel, motel and
restaurant facilities, and with its cul­
tural activities coupled with those of
Omaha, Nebraska, just across the Mis­
souri River, it offers a variety of
entertainment for convention guests
during their spare time.
Council Bluffs is a modern city
steeped in history. In 1859, Abraham
Lincoln visited Council Bluffs and
stood upon a high cliff overlooking

C

B A N K -R IT E CYCLE P LA N
A M o d e r n B o o k k e e p in g S y s t e m
fo r C o m m e r c ia l Banks and
In sta llm e n t L o a n s
1. This new method of accounting
spreads the work and eliminates
month-end peak load of prepar­
ing statements by daily cycling
and mechanically proving before
mailing.
2. Profit by the experience of other
banks and department stores
who have been using the Cycle
Plan for years.
3. Because of the audit feature and
reduced costs, these concerns
wouldn’t consider going back to
the old conventional method of
month end worry.
4. On Installment Loans the pay­
ment date determines the Cycle.
5. Coupons promote more efficient
balancing but pass books work
equally well on the cycle plan.
6. Numerical or alphabetical ar­
rangement of ledgers.
7. The ledger accounts are ar­
ranged to provide horizontal,
diagonal and vertical visibility.
8. Operating costs are reduced
20% to 30% over other methods.
W rite for inform ation

-

B

A N

K

- R I T E

-

B A N K R IG H T W/TH TH E B A N K -R IT E PLAN
3717 F O R E S T A V E .

DES MOINES, IO W A
Northw estern

Banker, M a y ,


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Federal Reserve Bank of St. Louis

1954

the rich Missouri Valley basin and
proclaimed the city as “W here the
East truly meets the W e st.”
Since
that time, Council Bluffs has grown
to a thriving city of over 47,000 popu­
lation. It is the fifth largest rail cen­
ter in the United States and the home
of the second largest mail terminal.
Its nurseries contribute to the beauty
of our entire country. One of these
is the largest single area under glass
in the world. It also is the home of
many feed and seed concerns, as well
as manufacturers of truck bodies,
plastic bags, radio parts and other di­
versified products.

Remarks — N. P. Black, state
superintendent of banking, Des
Moines; president, Dallas Coun­
ty
Savings
Bank,
Minburn;
president, Perry State Bank,
Perry.
Talk— “ Iow a’s New Auto Cer­
tificate of Title L aw ,” John F.
Carlson, director, Motor Vehi­
cle Registration, Division of
Iowa State Department of Pub­
lic Safety, Des Moines.
Talk— “ Sound Money and Your
Savings Bonds,” King R. Pal­
mer, state director, Savings
Bonds Division of Treasury De­
partment, Des Moines.

Council Bluffs is truly known as the
medical center of southwest Iowa,
with three hospitals, two clinics and
many fine doctors and dentists. The
school system is one of the most up
to date in the United States, with a
continuing program of new schools.
And while you are there you might
like to visit the Lincoln Monument;
the markers of the Old Mormon Trail;
Fairm ount Park, seated high in the
bluffs; beautiful Lake Manawa, which
has more visitors annually than any
other lake in the state of Iowa; or
Dodge Park, named after General
Dodge, the builder of the Union Pa­
cific Railroad, who made his home
in this great city.

GROUP

5 P R O G R A M , M A Y 4TH
C ou nc il Bluffs

Address — “W h a t Makes It
Tick?” Charles T. Evans, as­
sistant to president of the A r­
kansas Power and Light Com­
pany; executive secretary of
the Arkansas Utilities Associa­
tion, Little Rock, Arkansas.
Rem arks— Frank W arner, sec­
retary, Iowa Bankers Associa­
tion, Des Moines.
3:45

Adjournment.

4:00

Conference of Officers of Coun­
ty Bankers Association.

5:00

Social Hour — Terrace Room
and Lounge, Hotel Chieftain.

Eve n in g
6:30

Banquet— Hotel Chieftain.
Introduction of guests.

8:00

Entertainment — Hotel
tain.

Forenoon *
10:00

Registration and Visiting— H o­
tel Chieftain Lobby.

M A R Q U ETTE
flatfaurtB A N K
OF

MINNEAPOLIS

1

Chief­

d

87

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i l

B

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f f s

i

The banks of Council Bluffs cordially invite the bankers
of G roup Five and their friends to our annual meeting
to be held in Council Bluffs, Tuesday, M a y 4.
Here is a real chance to profit from your neighboring
banker's experience, and to listen to up-to-date infor­
mation on current banking problems.

W e II See You at . . .


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Federal Reserve Bank of St. Louis

Council Bluffs—Tuesday, May 4
-T H E C O U N C IL BLUFFS B A N K S City National Bank
State Savings Bank
Council Bluffs Savings Bank

Northw estern

Banker, M a y ,

19 54

88

Iowa N e w s

Newton H ost to Group ti
E W T O N , meeting place for Group
6 on W ednesday, May 5th, is a
city easily accessible as a convention
site.
Located 30 miles east of Des
Moines on Federal Highw ay No. 6 and
State H ighw ay No. 14, it is served by
the Greyhound Bus Line and the main
line of the Rock Island Railroad, also
by a connecting line with the Minne­
apolis and St. Louis Railroad.

N

W ash in g machine center of the
world, N e w t o n is internationally
known for its m any other manufac­
tured products, such as advertising
specialties, farm and highway equip­
ment, general household appliances,
and its famous Blue Cheese. Newton
has been referred to as the industrial
center of the middle west.

courses, tennis courts, children’s play­
grounds, and fine theatres, providing
young and old with ample opportuni­
ties for recreation and relaxation.

G R O U P 6 P R O G R A M , M A Y 5TH
Forenoon
10:00
12:00
12:30

Registration— Newton Country
Country Club.
Social period.
Luncheon.

A ft e r n o o n
1:30

But Newton is also a well balanced
community. Besides its great indus­
trial plants employing thousands of
people, it has fine residential districts,
second to none in beauty of homes
and landscaping.
It has modern
schools and beautiful churches, known
throughout the state for their careful
training.
It has its well planned
parks, among them the beautiful M ay­
tag Park with its natural amphithea­
ter and band shell. Newton has its
wooded picnic areas, beautiful golf

Meeting Called to Order — C.
W a l t e r Anderson, chairman,
Group 6; executive vice presi­
dent, City State Bank, Madrid.
Lee A . Holland, president, Iowa
Bankers Association; executive
vice
president, W ashington
State Bank, W ashington.
N. P. Black, state superintend­
ent of banking, Des Moines;
president, Perry State Bank,
Perry; president, Dallas County
Savings Bank, Minburn.
W . H. Brenton, past president,
American Bankers Association;
president, State Bank of Des
Moines.
King P. Palmer, state director,
savings bond division.
Charles T. Evans, assistant to

president, Arkansas Power &
Light Company, Little Rock,
Arkansas.
Frank W arner, secretary, Iowa
Bankers Association.
Election of officers for Group 6.
Adjournment.

>

A social hour will be held at the
close of the meeting. The golf course
will be available to those who may
wish to play.

T w o N e w O fficers
Promotion of Duane Imrie from
treasurer to secretary of the Council
Bluffs Savings and Loan Association
was announced last month by Einer
P. Juel, president.
His post as treasurer will be filled
by Phillip Gronstal, who has been an
employe of the Council Bluffs Savings
Bank.
Mr. Emrie succeeds A lvin C. Ander­
son, who died recently from injuries
suffered in an automobile accident.

O fficer P ro m o te d
The promotion of Leo J. E aly as as­
sistant vice president in charge of the
installment loan department was an­
nounced last month by the Peoples
Bank and Trust Company, Cedar Rap­
ids, Iowa.

H a rv e s t M o n e y M a k in g Id e a s

C o m e to

N e w t o n

W e d n e s d a y , M a y 5, and reap the benefits o f the b i g annual m ee tin g of
Group 6 . . .

a fine p r o g r a m , genuine h osp itality , and m ee tin g w ith your

b a n k e r friends.

BE SURE TO P LA N O N BEING W ITH US A N D ENJOY OUR JASPER COUNTY
H O SP IT A LIT Y
M EM BERS OF THE JASPER CO U N TY

BANKERS A S S O C IA T IO N

S ta t e S a v i n g s Bank, Baxter
First N a t i o n a l Bank, C o lfa x
K e l l o g g S a v i n g s Bank, K e l l o g g

M o n r o e S ta t e Bank, M o n r o e
N e w t o n N a t i o n a l Bank, N e w t o n
J a s p e r C o u n t y S a v i n g s Bank, N e w t o n

First S ta te Bank, L y nn viile
M i n g o T ru st & S a v i n g s Bank, M i n g o

S t a t e Ban k o f Prairie City, P rairie C ity
First N a t i o n a l Bank, Prairie C ity

N orthw estern

Banker, May, 1954


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Federal Reserve Bank of St. Louis

K

A

Iowa News

(» r o i/ / » I O W i l l 3 Í 4 t e t 3 I n i / O
E M B E R S of Group 10 of the
Iowa Bankers Association will
start their program on Thursday, May
6th, by holding a noon luncheon at
the new Ottumwa Country Club. Golf
will be scheduled in the afternoon for
all bankers who wish to participate.
Follow ing the golfing activities in
the afternoon, the meeting will move
to Lake W apello where a social hour
and dinner will be held, starting at
5:00 p. m.
The annual meeting and business
session, including the election of new
officers, will begin after the dinner in
the evening at Lake W apello.
The
lake is situated southeast of Ottumwa
and can be reached by driving south
16 miles on H ighw ay 63 and going
west 10 miles on Davis county road
273.
Hosts for the meeting of Group 10
this year are the W apello and Davis
County Bankers Associations.

M

youngsters. In addition, $100 in door
prizes was awarded. More than 2,000
persons attended the celebration.
The bank is in the same location in
Em m etsburg where the original Palo
Alto Bank was opened in the 1880’s
under the presidency of M. L. Brown,
first mayor of the town.
The present bank, organized April
1, 1929, showed deposits on opening
day of $47,042. This total compares to
nearly $5,000,000 on deposit today.
Capital has grown from $30,000 to
$100,000, surplus has increased from
$7,500 to $150,000 and undivided prof­
its have increased from $2,500 to more
than $94,000.
Officers of the bank are: W . Harold
Brenton, president; W illiam Zunkel,
executive v i c e president; W illiam
Thomas, cashier; Geo. C. Kelly and
W illiam J. Degnan, vice presidents,
and Florence Berdin, Calista W iese,
Marvin Broadwell and George Merriam, assistant cashiers.

25th A n n iv e r s a r y
The Palo Alto County State Bank
in Em m etsburg, Iowa, marked the
25th anniversary of its founding last
month with open house for the public.
There were free flowers for the ladies,
cigars for the men and candy for the

H o lla n d L e a v e s G rinnell
Lewis L. Holland, cashier of the
Grinnell State Bank, Grinnell, Iowa,
resigned last month to accept a bank­
ing position in Kewanee, Illinois.
Mr. Holland has been appointed

89

cashier and executive officer of the
Kewanee National Bank.
Going to Grinnell in June, 1951, Mr.
Holland first served as assistant cash­
ier and was named to the cashier’s
post in May, 1952.

H e a d s C a lh o u n B a n k e rs
Howard Longfellow, cashier of the
National Bank of Rockwell City, was
re-elected president of the Calhoun
County Bankers Association at the
spring meeting of the group held at
the Lake City State Bank in Lake
City, Iowa, last month.
Paul W . Mack, cashier of the Lake
City State Bank, was re-elected secre­
tary-treasurer of the organization.

A s s is t a n t C a sh ie r
Duane Munter has been appointed
assistant cashier of the Union Trust
and Savings Bank of Fort Dodge,
Iowa, and will be in charge of the
mortgage loan and farm management
department, a new department.
A graduate of the University of N e­
braska in 1948, Mr. Munter has been
employed for the past five years by
the Northwestern Mutual Life Insur­
ance Company as assistant loan agent
in their St. Louis and Des Moines
offices.

Y o u ’ll Find
The Answers

A t Lake
\\ apello

Attend Group 10 Meeting — Thursday, May 6
M ake plans n ow to attend the annual m eetin g o f G rou p T en to
be h eld at Lake W a p e llo , T hu rsd ay, M ay 6, starting w ith a social
h ou r and din n er at 5 P. M. H ere y o u w ill greet y o u r fe llo w bankers,
exch an ge ideas, and be on h and fo r a fine p rog ra m p a ck ed w ith
in fo rm a tio n on m od ern day b a n k in g p rob lem s.

Remember to be with us for our
Noon Luncheon and Golf at the Ottumwa Country Club
MEMBERS OF THE DAVIS AND W APELLO BANKERS ASSOCIATIONS
Davis County Savings Bank, Bloomfield
Fidelity Savings Bank, Ottumwa
Exchange Bank, Bloomfield
Union Bank & Trust Company, Ottumwa
First National Bank, Eldon
Farmers <£: Merchants Savings Bank, Ottumwa
South Ottumwa Savings Bank, <htumwa

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Federal Reserve Bank of St. Louis

Northw estern

Banker, M a y ,

195 4

90

Iowa News

Intio/H’iith>nrr H ost tu tirimi! 7

MAIN STREET through Independence, Iowa, as seen from the air. Bankers of Group 7
will meet in this town Friday, May 7.
O TE L PIN IC O N in Independence,
Iowa, the hotel that a community
built, and the Wapsipinicon Country
Club will provide the setting for the
annual meeting of Group 7 of the
Iowa Bankers Association on Friday,
May 7th.
The 40-room hotel was completed in
1952 and 460 Independence residents
went into the hotel business after
buying stock to assure a hotel and

H

community meeting place for this
town of 5,000 located on Highways 20
and 150.
The Wapsipinicon Country Club,
just west of Independence, features
a nine-hole golf course with grass
greens, shuffleboard courts and a com­
fortable club house overlooking the
beautiful Wapsipinicon River.
The
river, which wends its way through
Independence, is considered one of

A Sure Hit
At Independence
We are counting on your attendance at the meeting
of Group 7 of the Iowa Bankers Association here in Inde­
pendence, Friday, May 7. The bankers of Buchanan
County count it a privilege and honor to entertain you.
A fine program has been arranged with plenty of topnotch entertainment that we feel will make a hit with you.
So remember the time and place:

G roup

7 —

F riday,

M ay

7

the better fishing spots in Iowa.
Independence is the front door also
to picturesque northeast Iowa trout
streams and nearby Backbone State
Park with its touch of wilderness,
trout breeding ponds, picnic areas, a
beautiful lake and countless scenic
hiking trails.
The town of Independence was
founded in June of 1847. In the 1880’s
it was hailed as the race horse capital
of the world. Those were the days
of Charley W illiam s,
his famous
horses, A xtell and Allerton, and his
kite-shaped track which
attracted
fans from all over the United States.
A t the close of each day’s races the
silver dollars bet on favorite trotters
and pacers would be shoveled into a
horse-drawn wagon and hauled to
the Independence banks.
Independence is the county seat of
Buchanan county, which derives its
main income from prosperous farms
where hogs and corn are raised in
abundance.
Independence has 237 retail stores
and business firms. Listed among its
manufacturing plants are the Inde­
pendence Produce; the Independence
Canning Corporation; the Bloom Manfacturing
Company, which
makes
farm equipment; Midwest W ood Prod­
ucts Company, which manufactures
toy hobby horses; Independence Ma­
chines Company, and the W apsi FlyTying Company.
A mile west of Independence is the
Mental Health Institute, where 1,500
patients receive treatment under di­
rection of Dr. Donald Kyer, superin­
tendent.
The institute and hospital
buildings will be .visited by bankers
and their wives at the Group 7 meet­
ing in Independence.
Another point of interest is the
home of Lowell W alter near Quasqueton in Buchanan county, which was
designed by the famed architect,
Frank Lloyd W right.
Follow ing is the program for the
Group 7 meeting at Independence on
Friday, May 7th, which has been ar­
ranged by members of the Buchanan
County Bankers Association, hosts for
the get-together:

G R O U P 7 P R O G R A M , M A Y 7TH
In d e p e n d e n c e
Forenoon
10:30

MEMBERS OF THE BUCHANAN COUNTY BANKERS ASSO C IATIO N
Fairbanks State Bank, Fairbanks

Noon
12:00 Dutch Treat— Hotel Pinicon.

A ft e r n o o n
W a p s i p i n i c o n G o l f C lub

Farmers State Savings Bank, Independence
Security State Bank, Independence
Farmers State Bank, Jesup
Rowley Savings Bank, Rowley
r t h w e s t e r n B a n k e r , May, 7954
Digitized forN oFRASER
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Federal Reserve Bank of St. Louis

Registration — Lobby, Hotel
Pinicon or W apsipinicon Golf
Club.

1:45

Meeting Called to Order— S. C.

GROUP 7 PROGRAM . . .
(Turn to page 92, please)

fowa News

1 liarlos Villi Has! lo 4¿rou¡i

9i

are gracious hosts to convention dele­
gates.
The civic and comm unity organiza­
tions are always at the service of the
visitor and newcomer. There are sev­
eral newcom ers’ clubs that make it
easy for the entire family to make
new friends quickly.
The Charles
City Chamber of Commerce stands
ready to provide local directions, city
maps, travel information, conducted
tours of local industry and almost any
service that will make your stay,
whether temporary or permanent,
pleasant and convenient. Plan to be
in Charles City, May 20th— your host
is counting on you.

.7

G R O U P 3 P R O G R A M , M A Y 20TH
C h a rle s C ity
H E N the bankers of Group 3 ar­
rive in Charles City, Thursday,
May 20th, they will find a manufac­
turing city strategically located in the
very center of the finest farm land in
the nation.
They will find that the
citizens of Charles City and the farm ­
ers of her trade territory realize their
mutual welfare depends upon a use­
ful,
friendly
relationship between
business and agriculture.
It is be­
cause of this that Charles City strives
constantly to attract those businesses,
industries and individuals who will
be interested in participating in and
preserving this healthy balance.

W

Charles City offers an opportunity
to small manufacturers and distribu­
tors.
Home of the first farm trac­
tor, the comm unity is proud of her
manufacturing concerns: The Oliver
Corporation, manufacturers of farm
and industrial tractors; Dr. Salsbury’s
Laboratories, manufacturers of nation­

ally-known poultry and livestock med­
icines; the George P. Smith Company,
millwork manufacturers; Charles City
Manufacturing Company, builders of
television and radio cabinets and the
W alsh Manufacturing Company, pro­
ducers of electrical equipment. Charles
City is also the home of the Sherman
Nursery, among the world’s largest
evergreen growers; Capital Tobacco
Corporation, widely known distribu­
tors of tobacco and allied lines, and
the Charles City Bottling W orks, dis­
tributors of bottled drinks and confec­
tions.

10:00

Forenoon
Registration and Visiting— St.
John Lutheran Parish Hall, lo­
cated diagonally opposite court­
house on Highways 18 and 218
at intersection of H ighw ay 14.

A ft e r n o o n
1:30

The facilities for conventions in
Charles City are excellent and the w el­
come mat is always out. Am ple space
is available for large gatherings and
the St. Charles, Norlin and Gilbert
Hotels offer fine accommodations. E n ­
tertainment and recreation are tai­
lored to suit every taste and the ex­
cellent clubs that surround the city

Meeting Called to Order— L. C.
Jorgensen, chairman, Group 3;
executive vice president, Citi­
zens State Bank, Iowa Falls.
Invocation — Harold Putney,
pastor, First Congregational
Church, Charles City.
Address of W elcom e— Michael
Micich, mayor of Charles City.
Response — H.
L.
Ollenburg,
president, Hancock County N a­
tional Bank, Garner.
Rem arks— Lee A. Holland, pres­
ident, Iowa Bankers Associaton; executive vice president,
W ashington State Bank, W a sh ­
ington.

M ake Your Plans N ow

G ro u p 3 Meeting
Thursday, May
B a n k e r s o f F lo y d C o u n ty e x te n d h e a r tie s t g r e e t in g s to m e m b e r s o f
G r o u p T h r e e a n d o t h e r B a n k e r s in a n t ic ip a tio n o f o u r a n n u a l G r o u p
m e e tin g in C H A R L E S C IT Y , T H U R S D A Y , M A Y 20.

M a k e th is a d a y o f

p le a s u r e a n d p r o fit b y c o m in g to o u r m e e tin g .

MEMBERS OF THE FLOYD COUNTY BANKERS ASSOCIATION
Commercial Trust and Savings Bank, Charles City
First State Bank, Nora Springs
Citizens National Bank, Charles City
First State Bank, Rockford
First Security Bank and Trust Company, Charles City

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Federal Reserve Bank of St. Louis

N o rth w e ste r n Banker, M ay ,

195 4

Iowa News

92

Address — “Recent Develop­
ments in the Education of
Teachers.” Dr. J. W . Mauc-her,
president, Iowa State Teachers
College, Cedar Falls.
Rem arks— N. P. Black, state su­
perintendent of banking, Des
Moines; president, Perry State
Bank, Perry; president, Dallas
County Savings Bank, Minburn.
Remarks — Robert R. Rigler,
cashier, Security State Bank,
N ew Hampton; president, Fed­
eration of County Bankers A s­
sociations.
Talk— “Banks and the Savings
Bond Program” — K ing R.
Palmer, state director for Iowa
U. S. Savings Bond Division,
Treasury Department.
Rem arks— Frank W arner, sec­
retary, Iowa Bankers Associa­
tion, Des Moines.

Address — “ No W onder W e ’re
Nervous,” Cayce Moore, philos­
ophizing Texas barber, humor­
ist and entertainer, Hearne,
Texas.
Special entertainment has been pro­
vided for the ladies, so bring them
along.

GROUP 7 P R O G R A M . . .
(Continued from page 90)
Kim m ,
chairman,
Group
7;
cashier, Denver Savings Bank,
Denver.
Address of W elcom e — C. E.
Stewart, president, Buchanan
County Bankers Association;
cashier, Farmers State Bank,
Jesup.
Response to Address of W e l­
come— Lee Chandler, president,
Iowa Savings Bank, Dike.
Talk— Lee A . Holland, presi­
dent, Iowa Bankers Associa­
tion; executive vice president,
W ashington State Bank, W a sh ­
ington.
Talk— N. P. Black, state super­
intendent of banking; presi­
dent, Perry State Bank, Perry;
president, Dallas County Sav­
ings Bank, Minburn.
Talk— “ Problem of Taxes,” R.
B. Keck, assistant auditor, First
National Bank, Chicago, Illi­
nois.
Rem arks— Frank W arner, sec­
retary, Iowa Bankers Associa­
tion, Des Moines.

Even ing
5:00

Social Hour —
Country Club.

6:30

Dinner — St. John’s Lutheran
Parish Hall.
Invocation — W alter M. Fritschel, pastor, St. John’s Luther­
an Church, Charles City.
Music — Members of Charles
City High School.

M

Charles

City

E R C H A N T S
MUTUAL

B O N D IN G
COM PANY

4:00

Adjournment.

4:30

Social Hour —
Golf Club.

6:00

Buffet D inner— Hotel Pinicon.
Organ dinner music, G. P.
Schroeder;
vocalist,
Nancy
Bond.

7:30

Meeting Called to Order— S. C.
Kimm .
Solo— Burton North.
Talk— King Palmer, U. S. Sav­
ings Bond sales director.
Music— Quartet.
Address— “Our System — W h at
Makes It Click,” Charles T.
Evans, assistant to president,
Arkansas Power Company; ex­
ecutive s e c r e t a r y , Arkansas
Utilities Association, L i t t l e
Rock, Arkansas.

Incorporated 1933

Eve n in g

Home Office
2100 GRAND AVENUE
Des Moines, Iowa

. V: . ' '

••

.-•
V' V/

;

■

This is Iowa’s oldest surety company.
A progressive company with experi­
enced, conservative management.
W e are proud of our three hundred
hank agents in Iowa.
To be the exclusive representative of
this company is an asset to your bank.

’V

Entertainm ent fo r L a d ie s
12:30

y p L W T L v :.,

;

•

.

E. H. W A R N E R
President and Manager
W. W . W ARNER
Secretary-Treasurer

Northw estern

Banker, M a y ,


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

W apsipinicon

1954

Luncheon— Hotel Pinicon. La­
dies will be guests of Buchanan
County Bankers Association.

Cars will leave Hotel Pinicon at
1:45 p. m. for tour of Mental Health
Institute.

The Causes o f
T r a c t o r

A ccidents
H A T causes tractor accidents on
farms and highways? Is it the
tractor, or the driver?
Relatives, employers, or close friends
of 26 of Iow a’s fatal tractor accident
victims answered a survey made by
the Iowa Retail Farm Equipm ent A s­
sociation recently, and below is a sum ­
mary of their answers:
1. Did tractor rear back, tip sidewise
or what? Backward 3; sideways 9;
forward crushing 2; backward
crushing 2; struck by car 2; forward
tip 3; unanswered 1; fell under 2.
2. W ou ld you say that too much
speed caused this accident? Yes 5;
No. 20; unanswered 1.
3. W ou ld you say the operation of
tractor on too steep a slope caused
the accident? Yes 7; No 18; unananswered 1.
4. W ou ld you say the operation of
tractor too near a ditch caused the
accident? Yes 6; No. 19; unan­
swered 1.
5. Did a mechanical failure cause the
accident?
Yes 2; No 23; unan­
swered 1.
6. W ou ld you say the driver or m a­
chine was at fault? Driver 16; ma­
chine 2; unanswered 6; neither 3.
7. W h a t implement (if any) was the
tractor drawing at time of the ac­
cident?
None 8; unanswered 5;
mower 2; plow 2; drag 2; disc 1;
wagon 3; planter 1; pulling stump
1; manure loader 1.
8. Did accident happen in: 1, field; 2,
building; 3, farmyard; 4, highway;
5, elsewhere (explain)? Field 13;
building; 3, farmyard; 4, on high­
way; 5, elsewhere (explain)? Field
13; building 2; farmyard 3; high­
w ay 6; elsewhere 2.
9. W a s the driver an: 1, experienced;
2, inexperienced tractor operator?
experienced 23; inexperienced 2;
unanswered 1.
10. About what time of day did acci­
dent happen?
Morning 4; 8:30
a.m. 1; 9:30 a.m. 2; noon 3; 2:30 p.m.
3; 4:00 p.m. 7; 5:00 p.m. 2; 6:30 p.m.
2; 10:00 p.m. 1; afternoon 1.
11. W ou ld you say weather conditions
were good or bad at time of the
accident? Good 24; fair 1; muddy 1.

W

ACORN

Registers

"A ccepted Sale Registers b y Bank
Clerks Everywhere"
For information write

THE A C O R N PRINTING C O.
OAKLAND. IOWA '

j

Iowa News

ty bankers associations with
group officers and President
Lee A. Holland.

tìnm p 2 M eets at Sten n Lulu*
TORM L A K E , “ The City Beauti­
ful,” will be the meeting place of
Group 2, Friday, May 21st. W ith over
7,000 population, Storm Lake is lo­
cated in Buena Vista County, on the
north side of the lake of the same
name.
Its wide streets, beautiful
homes and other good features make
it a real home town.
Storm Lake is located in the center
of a highly productive agricultural
area, and is proud of its farmer
friends who are interested in main­
taining such fine farms. Kingan Com­
pany Meat Packing, Vilas Poultry
Processing, Storm Lake Canning Com­
pany, DeKalb Hybrid Seed Corn, and
other industrial plants provide em ­
ployment for m any people, as well as
a national market for agricultural
commodities for which the trade area
is noted.
Three banks in Storm Lake and
seven other banks in Buena Vista
county provide ample financial serv­
ice for the large trade area.

S

Nine churches, six schools, two hos­
pitals, two downtown theatres and
one drive-in theatre are features
which attract m any in their selection
of a good town in which to live. There
are two fine newspapers. T h e S t o r m

L a k e R e g i s t e r and the P il o t T r ib u n e .

It is the home of radio station K A Y L
and K A Y L -F M , also the State Police
Radio Station.
Storm Lake is also the home of
Buena Vista College (Presbyterian),
founded in 1891, with four year co­
educational facilities and a campus of
11 acres.
Beautiful Storm Lake, with its sur­
rounding parks comprising over 3,000
acres of water playground and a ninehole golf course, affords fine opportu­
nities for swimming, boating, fishing
and golfing. Cobblestone Inn at Lake­
side, where the meeting of Group 2 is
to be held on May 21st, is renowned
for its excellent food and prompt serv­
ice, its fine ballroom and attraction of
name dance bands.
The I. C. Railroad, Sioux Line and
Greyhound Bus Lines, along with
U. S. No. 71 and State H ighw ays Nos.
5 and 110, make it readily accessible
from all points and add to its advan­
tages as a convention city.

12:00

1:30

Forenoon
Registration and Visiting— Cob­
blestone Inn.

11:00

Conference of officers of coun­

Lunch— Either at Cobblestone
Inn or in Storm Lake.

A ft e r n o o n

G R O U P 2 P R O G R A M , M A Y 21ST
10:00

93

Meeting Called to Order— K. A.
Reeves, chairman, Group 2;
cashier, Iowa Trust & Savings
Bank, Emm etsburg.
Invocation — Reverend Carl F.
Schattauer, pastor, St. M ark’s
Evangelical C h u r c h , Storm
Lake.
Address of W e lc o m e — Mayor
F. W . Ruliffson, Storm Lake.
Response— C. R. Sexton, cash­
ier, Farmers Trust & Savings
Bank, Spencer.
Appointment of N o m i n a t i n g
Committee by K. A. Reeves,
chairman.
Talk— Lee A. Holland, presi­
dent, Iowa Bankers Associa­
tion; executive vice president,
W ashington State Bank, W a sh ­
ington.
Talk— N. P. Black, state super­
intendent of banking; presi­
dent, Perry State Bank, Perry;
president, Dallas County Sav­
ings Bank, Minburn.
Talk— King R. Palmer, State

You Are Invited
To Storm Lake!
G ro u p 2 — Friday, May 21
Bankers of Buena Vista County are most happy to extend an invita­
tion to the hankers of Group 2 and their friends to meet with us
Friday, May 21.
Extensive plans are being made now for an outstanding program.
Let's all attend and make this years meeting one of the jnost successful
of all time.
M A Y W E COUNT ON YOUR PRESENCE?
MEMBERS OF THE BUENA VISTA COUNTY BANKERS ASSOCIATION
Albert City Savings Bank, Albert City
First Trust & Savings Bank, Alta
First State Bank, Office Linn Grove
Citizens State Bank, Marathon
First National Bank, Newell


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Federal Reserve Bank of St. Louis

First National Bank, Rembrandt
First State Bank, Sioux Rapids
Citizens First National Bank, Storm Lake
Commercial Trust and Savings Bank, Storm Lake
Security Trust & Savings Bank, Storm Lake
N orthw estern

Banker, M a y ,

1954

lowa News

94

Director for Iowa of U. S. Sav­
ings Bond Division.
Address— To be announced.
Talk— A n Iowa Junior Banker.
Rem arks— Frank W arner, sec­
retary, Iowa Bankers Associa­
tion, Des Moines.
Report of nominating comm it­
tee.
A n y other business.
4:30

Adjournment.

6:30

Dinner— Cobblestone Inn.
Music.

7:30

Address— “You and That First
Million,” Cayce Moore, philoso­
phising Texas barber, humorist
and entertainer, Hearne, Texas.

4

tivnup 4 M eets in ihthuque

i

r

Entertainment for the ladies is also
being planned.

Since
1905
E A G L E P O I N T is a picturesque park open to the public during
the summer months in Dubuque.

• T h e latest
equ ip m en t and
m eth o d s, plus a
frien d ly a ttitu d e ,
are g eared to be
of serv ice to
you at any tim e.

MEMBER
F D IC
FR S

The Friendly

AMERICAN TRUST & SAVINGS BANK
Dubuque, Iowa

U B UQUE, meeting place for m em ­
bers of Group 4 on Tuesday, May
18th, is located on the banks of the
Mississippi River at the junction of
three states— Iowa, Illinois, and W is ­
consin. Now a city of 54,000, Dubuque
was the site of the first permanent
settlement of white men in the state of
Iowa. Here in the heart of the nation’s
most prosperous farming area, in­
dustry and agriculture thrive.

D

Three progressive banks with de­
posits of $62,175,166 as of January 1,
1954, and showing customers’ check
debits of over $500,000,000 annually

COLLATERALIZED BANK LOANS
P ledged inventories, w hen represen ted by
a ccep ta b le W areh ou se R eceip ts, fu rn ish
ideal and very d esirable co lla te ra l to y o u r
bank loans. T hese R eceip ts brin g such
in v en tories— h ow ev er cu m b e rso m e — right
•/
//'
IV
^
in to y ou r bank w ith ou t necessity o f p ro v id in g storage space.

WAREHOUSE RECEIPTS
issued by
WILLIAM H. BANKS W AREHOUSES, INC.
have offered S U P E R IO R service to banks fo r a p e r io d o f over 60
years. M ay we b e o f assistance to y o u r ban k in safely increasing
its ban k loa n s?
W rite or p h on e us today for inform ation
MAIN OFFICES:
209 S. LaSalle Street
Chicago 4, Illinois.
Phones:
State 2-0204-0205-0206

o r t h w e s t e r n Banker, May, 1954
Digitized for NFRASER
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

DIVISION OFFICES:
Des Moines, Iowa—Phone 3-4465
Washington C. H., Ohio— Phone 4-7591
San Antonio, Texas— Blackstone 5-7317
Angola, Indiana— Phone 193-L.

serve the business interests faithfully.

GROUP

4 PROGRAM,
D ubu qu e

MAY

18 TH

Forenoon
9:30

Visiting and Registration
Julien Hotel Mezzanine.

—

A ft e rn o o n
1:00

r

Meeting Called to Order—A . W .
Bird, chairman, Group 4, cashier
Dyersville National Bank, Dyersville.
Invocation— Reverend Gaylord
M . Couchman, D.D., president,
University of Dubuque, Du­
buque.
Address of W elcom e— David B.
Cassat, president, Interstate Fi­
nance Corporation, Dubuque,
director, American Trust and
Savings Bank, Dubuque.
Response to Address of W e l­
come— F. B. Claxton, vice presi­
dent, State Bank of Fayette.
Appointment
A. W . Bird.

of Committees—

Rem arks— Lee A . Holland, vice
president, W ashington St a t e
Bank, W ashington.
Remarks — N. P. Black, Des
Moines,
superintendent of
banking, president, Perry State

X

YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE, VAULT A N D
TIMELOCK EXPERTS

F. E. DAVENPORT & CO.
OMAHA

k-

Iow a

News

95

A D E Q U A T E FA C ILIT IE S
PLUS
TH E P E R S O N A L IN TE R E ST
T O SE R V E Y O U BETTER

V A L L E Y BANK A N D TRU ST C O M P A N Y
DE S M O I N E S

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION


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Federal Reserve Bank of St. Louis

Northwestern

Banker,

May, 1954

96

Iowa News
Bank, Perry; president, Dallas
County Savings Bank, Minburn.
Address — Joseph A . Howell,
Richmond, Virginia, president,
Virginia-Carolina Chemical Cor­
poration, “ The Teller and the
Tiller.”

FOR SALE

National Bookkeeping Machine,
“ 2000” class— still under guaran­
tee— priced to sell.
Write BSC, c /o Northwestern
Banker, 527 Seventh Street, Des
Moines 9, Iowa.

Address— L. John Kutish, Chi­
cago, Illinois, agricultural econ­
omist, Federal Reserve Bank of
Chicago, “ The Agricultural Sit­
uation.”
Remarks— Frank W arner, Des
Moines, secretary, Iowa Bank­
ers Association.
Committee Reports

E ve n in g

IOW A LITHOGRAPHING • COM PANY
FOUNDED «V GEORGE M. RAGSDALE .

•

• EDWIN G. RAGSDALE • SICFUTAHV

515 TWENTY EIGHTH STREET

DES •MOINES

5:00

Cocktail Hour — Dutch
Hotel Julien.

Room,

QUALITY* EX P ER IEN CE •SERVICE

6:30

at

the

H am ­

Dinner— Gold Room, Hotel Julien.
Invocation— The Most Reverend
Loras T. Lane, D.D., Dubuque,
auxiliary bishop of Dubuque,
president Loras College.
Address— Cayce Moore, Hearne,
Texas, philosophizing T e x a s
barber, humorist and entertain­
er, “Living— Or Just Looking.”

Entertainm ent
For the La d ie s
Busses for a two hour free tour of
the city will leave the hotel at 2:00
p.m. You should register for this tour
at registration desk by 1:00 p.m.

(x

IN D E X OF

BANKS S„°dusoH
iD

Howard Bauck
mond Organ.

A D V E R T IS E R S

A C O N F ID E N T IA L , P E R S O N A L SER VICE
F O U N D E D O N 25 Y E A R S E X P ER IEN C E

G re a t N o r th e rn In s u ra n c e C o m p a n y . . . . 48

II

H a ls e y , S tu a rt an d C o m p a n y , In c .............. 45
H a n o v e r B a n k , T h e ...............................................99
H e n d e r so n , T. C., & C o m p a n y , In c ............44
H o n o r R o ll B a n k s — N o r th D a k o t a ............ 66
I

B a n k e r s S e r v ic e C o m p a n y
HENRY H BYERS. Rret
lock Box 143 S
DES M OIN ES 5. IO W A

N 1 SHAFFER. V P
*. C. UNTIEDT. V P
lock Box 1421
COLORADO SPRINGS COLO

Oldest in Des Moines

Des Moines Savings
and Loan Association
Current
High
3%
Dividend
2 1 0 6th Ave.

Investments
Insured
To

$ 10,000
Dial 2-8303

MAY. 1954
A

A c o rn P rin tin g' C o m p a n y ................................. 92
A llie d M u tu a l C a s u a lty C o m p a n y ..............54
A m e r ic a n E x p r e s s C o m p a n y ............................ 5
A m e r ic a n N a tio n a l B a n k and T r u s t
C o m p a n y — C h ic a g o ...........................................28
A m e r ic a n T r u s t C o m p a n y — San
F r a n c is c o .......................................... 4 9 -5 0 -5 1 -5 2
A m e r ic a n T r u s t and S a v in g s B a n k —
D u b u q u e ................................................................... 94
It

B a n k o f A m e r ic a .....................................................27
B a n k o f M o n t r e a l.....................................................58
B a n k -R it e P la n ....................................................... 86
B a n k e r s S e c u rity L ife In su ra n c e
S o c ie ty ......................................................................82
B a n k e r s S e rv ic e C o m p a n y , In c ................76 -9 6
B a n k e r s T r u s t C o m p a n y — D e s M o i n e s .. 81
B a n k s, W ill ia m H ., W a r e h o u s e s , Inc. . . . 9 4
B ilo x i H o te l .............................................................. 76
B u c h a n a n C o u n ty B a n k e r s A s s o c ia tio n . 90
B u e n a V is t a C o u n ty B a n k e r s
A s s o c ia tio n ............................................................92
B u r r o u g h s C o rp o r a tio n , T h e ..........................63
C
C e n tr a l B a n k an d T r u s t C o m p a n y —
D enver
......................................................................73
C e n tr a l N a tio n a l B a n k an d T r u s t
C o m p a n y — D e s M o in e s ................................. 12
C e n tr a l R e p u b lic C o m p a n y ...............................74
C e n tr a l S ta te s M u tu a l In s u ra n c e
A s s o c ia tio n ............................................................53
C h a se N a tio n a l B a n k ...........................................31
C h e m ic a l B a n k and T r u s t C o m p a n y . . . . 42
C h r is tm a s C lub , a C o r p o r a tio n .....................41
C ity N a tio n a l B a n k — C l i n t o n . . .................. 80
C ity N a tio n a l B a n k an d T r u s t C o m p a n y
— C h ic a g o .................................................................26
C ity N a tio n a l B a n k an d T r u s t C o m p a n y
— K a n s a s C ity .....................................................36
C o lo ra d o In s u ra n c e G r o u p ...............................53
C o m m e rc e T r u s t C o m p a n y ...............................30
C o n tin e n ta l-I llin o is N a tio n a l B a n k and
T r u s t C o m p a n y .................................................. 33
C o n tin e n ta l N a tio n a l B a n k — L i n c o l n ... 74
C o u n c il B lu ffs B a n k s ...........................................87
I)

D a v e n p o r t, F . E ., an d C o m p a n y ........... 74 -9 4
D a v is an d W a p e llo C o u n ty B a n k e r s
A s s o c ia tio n s ......................................................... 89
D e a n -W i t t e r an d C o m p a n y ...............................44
D e L u x e C h ec k P rin te rs , In c ......................... 57
D e s M o in e s S a v in g s an d L o a n
A s s o c ia tio n ............................................................96
D o r n h e r g e r an d C o m p a n y ................................. 53
D r o v e r s N a tio n a l B a n k ..................................... 4
F

F ir s t
N a tio n a l
B a n k — C h ic a g o ................29
F ir s t
N a tio n a l
B a n k — L in c o l n .................72
F ir s t
N a tio n a l
B a n k — O m a h a .................. 75
F ir s t
N a tio n a l
B a n k — St. J o s e p h ..........75
F ir s t N a tio n a l B a n k an d T r u s t C o m p a n y
— T u ls a ......................................................................67
F lo y d C o u n ty B a n k e r s A s s o c i a t io n ........... 91

N o r t h w e s t e r n Banker, M a y ,


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

1954

I n t e r -S t a t e N a tio n a l B a n k — K a n s a s
C ity ............................................................................. 76
I o w a -D e s M o in e s N a tio n a l B a n k ............ 100
Io w a L ith o g r a p h in g C o m p a n y ....................... 96

.1
J a e g e r M a n u fa c tu r in g C o m p a n y .................. 38
J a sp e r C o u n ty B a n k e r s A s s o c ia tio n . . . . 88

K
K in g and P rin c e H o t e l ..........................
62
K o c h B r o th e r s ..........................................................96
\.

L

L a M o n te , G e o r g e and S o n ................................. 35
L a w r e n c e W a r e h o u s e C o m p a n y .................. 39
L e e P la s tic M a n u fa c tu r in g C o.......................40
L e F e b u r e C o rp o r a tio n ........................................ 32
L iv e S to c k N a tio n a l B a n k — C h ic a g o . . . . 34
L iv e S to c k N a tio n a l B a n k — O m a h a ..........78
L iv e S to c k N a tio n a l B a n k — S io u x C i t y . .6 0

M
M a n u fa c tu r e r s T r u s t C o m p a n y ..................... 59
M a rq u e tte N a tio n a l B a n k ............................... .8 6
M e r c h a n ts M u tu a l B o n d in g C o m p a n y ... 92
M e rc h a n ts N a tio n a l B a n k ................................ 2
M id la n d N a tio n a l B a n k ......................................57
M in n e s o ta C o m m e rc ia l M e n ’ s
A s s o c ia tio n ............................................................58
M o s le r S a fe C o m p a n y ...........................................37
M u tu a l F ir e an d A u to m o b ile In su ra n c e
Com pany
.................................................................54

\
N a tio n a l B a n k o f T u l s a ......................................64
N a tio n a l C ash R e g is t e r C o m p a n y ............ 14
N o r th C e n tr a l L ife In s u ra n c e C o m p a n y . 3
N o r th e rn T r u s t C o m p a n y .............................. . 8 5
N o r th w e s te r n N a tio n a l B a n k ..........................83

o

O ld R e p u b lic C re d it L ife In s u ra n c e
Com pany
.................................................................46
O m a h a N a tio n a l B a n k ........................................ 25

K
R e c o r d a k C o rp o r a tio n ....................................8 -9
R ed R iv e r N a tio n a l B a n k — G ra n d
F orks
........................................................................ 66
R e p u b lic N a tio n a l B a n k o f D a l l a s ............ 6
R o y a l B a n k o f C a n a d a ........................................ 57
S
St. P a u l-M e r c u r y In d e m n ity C o m p a n y .. 48
St. P a u l T e r m in a l W a r e h o u s e
Com pany
.................................................................77
S c a rb o r o u g h an d C o m p a n y ................ 4 7 -7 4 -8 2
S to c k Y a r d s N a tio n a l B a n k — O m a h a . . . 71

T
U n ited S ta te s C h eck B o o k C o m p a n y . . . . 84
U n ite d S ta te s N a tio n a l B a n k ..........................68
V

V a l le y B a n k an d T r u s t C o m p a n y ................ 95
V a lle y N a tio n a l B a n k — P h o e n ix .................. 40
W

W 'a lte rs , C h a rle s E ., C o m p a n y ....................... 72
W e s t e r n M u tu a l In s u ra n c e C o m p a n y . . . 46

97

In the

DIRECTOR’S
ROOM
Big Shot

Fair Enough

P oor R eception

“ So your husband is one of the big
guns of industry.”
“Yes, he’s been fired seven times.”

Aunt Irma (reproaching child for
making faces): When I was a child,
I was told that if I made ugly faces
I would stay that way.
Little Helen: Well, Auntie, you
can’t say you weren’t warned.

“ Bobby,” asked the teacher, “where
is the English Channel?”
“ I don’t know, teacher,” was the re­
ply, “we can’t get it on our TV set.”

N ovice
Golfer: I don’t seem to be playing
my usual game today.
Caddy: What game do you usually
play, sir?

A Real Break
Boss: That’s five times this week
you’ve been late. Have you anything
to say for yourself?
Steno: Thank goodness it’s Friday.

Silent Type
Gert: What did your dad say about
your having smashed up the car?
Bert: Shall I leave out the naughty
words?
Gert: Of course.
Bert: Then he didn’t say a word.

Reckless
She had eight neighborhood young­
sters in the car when she passed the
red light, unnoticed. An officer halted
her, “Don’t you know when to stop?”
“ See here,” she protested, “these are
not all my children.”

H e'd B etter B e!
Wife: How are you at remembering
faces?
Husband: I’m pretty good.
Wife: Fine, I broke your shaving
mirror this morning.

Be Patient
A little boy at school for the first
time was sobbing bitterly.
“ What’s the matter, Willie?” asked
the teacher.
“ I don’t like school, and Mommie
says I have to stay here until I’m 14,”
wailed the lad.
“Don’t let that worry you,” said the
teacher. “ I have to stay here until
I’m 65.”

No Fair
Jewelry Salesman: You get the girl
—we’ll do the rest.
Young Groom: That hardly seems
fair.

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

Some Kid
Mother (fondly watching two-yearold) : He’s been walking like that for
a year.
Bored Visitor: Amazing. Can’t you
make him sit down?

M eow
Feminine Compliment: My dear,
what a perfectly stunning dress; didn’t
they have it in your size?

C O N V E N T IO N S
May 4-7, First Week of Iowa Group
Meetings.
May 10-12, Missouri Bankers Assn.,
Jefferson Hotel, St. Louis.
May 12-14, Kansas Bankers Assn., Kan­
sas City, Missouri.
May 14-16, Spring Conference, Associ­
ation of Bank Women, St. Louis,
Park Plaza Hotel.
May 18-21, Second Week of Iowa
Group Meetings.
May 21-22, North Dakota Bankers
Assn., Hotel Dakotah, Grand
Forks.
May 27-29, American Safe Deposit
Association, Minneapolis.
June 4-5, South Dakota Bankers Asso­
ciation, Hotel Franklin, Deadwood.
June 7-11, A.LB. 52nd Convention,
Hotels Statler and Biltmore, Los
Angeles.
June 9-11, Nebraska Bankers Bank
Management Conference, Doane
College, Crete.
June 11-12, Wyoming Bankers Associ­
ation Annual Convention, Wort
Hotel, Jackson.
June 14-15, Minnesota Bankers Assn.,
Hotel St. Paul, St. Paul.
June 14-16, Illinois Bankers Associ­
ation Annual Convention, Drake
Hotel, Chicago.
June 14-25, Iowa Bankers Agricultural
Credit School, Iowa State College,
Ames.
June 14-26, Graduate School of Bank­
ing, Rutgers University, New
Brunswick.

He Knows
Teacher: Where is the capital of
the United States?
Wise Student: Loaned all over the
world.

Ready to Go
Inebriate: What I wanna know is
why I been arreshted?
Desk Sergeant: You’ve been brought
in for drinking.
Inebriate: Thash different. Let’sh
get shtarted.
June 21-23, Wisconsin Bankers Assn.,
Hotel Schroeder, Milwaukee.
June 24-26, Montana Bankers Associ­
ation Annual Convention, Many
Glaciers Hotel, Glacier National
Park.
July 8-10, Central States Conference,
Grand Hotel, Mackinac Island,
Michigan.
July 26-August 7, FPRA School of
Financial Public Relations, North­
western University, Chicago.
August 23-September 4, Central States
School of Banking, University of
Wisconsin, Madison.
September 26-30, FPRA 39th Annual
Convention, Statler Hotel, Wash­
ington, D. C.
September 27-30, Mortgage Bankers
Association, Conrad Hilton Hotel,
Chicago.
September 30-October 3, Annual Con­
vention Association of Bank
Women, Houston, Texas, Sham­
rock Hotel.
October 3-6, Robert Morris Associates,
Statler Hotel, Cleveland, Ohio.
October 11-12, Nebraska Bankers Asso­
ciation, Hotel Fontenelle, Omaha.
October 13-15, National Association of
Supervisors of State Banks, Sir
Walter Raleigh Hotel, Raleigh,
North Carolina.
October 17-20, ABA 80th Annual Con­
vention, Atlantic City.
October 18-21, National Assn, of Bank
Auditors and Comptrollers, San
Francisco.
November 7-10, Iowa Bankers Associ­
ation, Hotel Fort Des Moines, Des
Moines.
N orthw estern

Banker, M a y ,

19 5 4

98

LEGAL

is
a Hank Custom er
To E xam ine Cheek Endoi'sem ents?
T h is and O th e r Q u e st io n s A r e
A n s w e r e d b y the L e g a l D e p a rtm e n t

paid in matters of this kind includes
payment for all injuries which may
be contemplated as likely to result
from the proper and careful perform­
ance of the work of improving the
highway. It does not include, how­
ever, the right to use the road as •a
water course nor to gather together
water and fail to care for it. In view
of this the banker could, on a proper
showing, recover his flood damage
from the county.

Q . A Minnesota bank became in­
volved in a situation where one of its
customers did not examine the en­
dorsements on his checks as they
were returned to him duly cancelled
each month. Some of the endorsements
had been forged without the knowl­
edge of the maker of the checks or
the bank. Was there a legal obligation
on the part of the customer to examine
the endorsements?
No. In a recent decision on this
point of law the Minnesota Supreme
Court has stated: “ It is well settled
that the drawer of checks must ex­
amine cancelled checks and vouchers
to ascertain the genuineness of his
signature thereon and to determine
that the names of the payees therein
have not been changed or the amounts
in the checks have not been increased
or altered in any vital respect, but
there is no duty upon such a drawer
to discover forged endorsements be­
cause ordinarily he would not be
familiar with the signatures of the
payees designated in the checks.”
Minnesota, Iowa, Illinois, Michigan,
Indiana and other decisions were
cited in support of this statement.

Q . A North Dakota banker agreed
through a real estate agent to buy a
farm in that state from Bradley pro­
viding the title was good. The agent
had been employed by Bradley to
find a buyer and acted for him in the
transaction. The banker made a $500
down payment to the agent. Bradley
could not furnish good title and the
deal fell through. The banker sought
to recover the $500 from the agent.
It was still in his possession and had
not been turned over to Bradley al­
though he, the agent, had credited
it to Bradley’s commission account
with him. Could the banker recover
from the agent?
Yes.

A real estate agent who re-

Northw estern

Banker, M a y ,


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

19 5 4

Q.

LEGAL D EPARTM EN T
of thz
NORTHW ESTERN

BANKER

ceives for his principal a deposit to be
applied on the purchase price of land
has no more right to that deposit than
his principal. If the principal has no
right to the fund, the agent has no
right to apply it to the use of either
the principal or himself. Here Brad­
ley had no right to the $500. Since he
had no right thereto his agent had no
right to it and the banker could re­
cover it from the agent. The North
Dakota Supreme Court has so ruled
recently in a decision involving simi­
lar facts.

Q.

A South Dakota county rebuilt a
road along the side of a farm belong­
ing to a banker in that state. In doing
so it built a drainage ditch that un­
naturally flooded the banker’s land.
The banker sought damages. He had
been paid for a right of way and ditch
when the road Avas established. Did
this preclude a recovery by him?

No, according to a recent South
Dakota Supreme Court decision in­
volving similar facts. Compensation

Brown, a carpenter, did certain
work on an apartment belonging to a
banker in Iowa. When it Avas finished
the carpenter asked the banker for his
money and the latter informed him
that he expected to liquidate the bill
as soon as he AA’as financially able and
out of the rentals to be paid on the
apartment. Brown took no particular
exception to this position and waited
a reasonable time. Payment Avas not
forthcoming and he sued. Could he
recover?

Yes. The Iowa Supreme Court has
so held in a recent decision involving
similar facts. In doing so, it ruled that
where a debt is an absolute one a
promise to pay when the promissor is
financially able to do so is merely an
arrangement whereby the promissor is
not to pay immediately and may delay
payment until a reasonable time. It
held further that the legal import of
that part of the agreement concerning
payment out of apartment rentals was
also only to give the banker a reason­
able time to pay. Some states hold
that an agreement to pay when able is
a conditional promise on which no re­
covery can be had unless ability to pay
exists. Iowa has chosen not to follow
that line of cases, however, and' follows
the more realistic and appropriate de­
cision to the effect that agreements to
pay when able are to be dealt with on
the basis that payment must be made
within a reasonable time.

For more than
if

hala century

/ j f Banks in all parts o f the nation
have been Hanover correspondents.

A I\ e w E n g l a n d B a n k e r iv r ite s :

The report sent by you yesterday regarding the ____________ _
Corporation and Messrs_________ ,________ a n d ______________
is very helpful.
I want to particularly thank you fo r the thoroughness
and the effective manner in which the information was
developed and presented . . . ”

A Bank Is Known By The Correspondents It Keeps

T

h e


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

H

a n o v e r

B

a n k

Member Federal Deposit Insurance Corporation

To assure fast handling of transit items, this Bank
always makes full use of a great many facilities. In
addition to modern systems and equipment, mail ser­
vices are used to best advantage. W e continually
analyze airplane schedules . . . train schedules . . . bus
schedules . . . star route schedules . . . and highway
Correspondent Banking Department

post office schedules from and to all points in Iowa.
GERALD O. N ELSO N
Vice President

For fast collections, or other correspondent bank­
ing service, we welcome the opportunity to be helpful.


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

EVERETT M. GRIFFITH
Vice President
M IC H A E L J. COSTELLO
Assistant Cashier