Full text of The Northwestern Banker : May 1965, 71st Year, No. 934

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Convention Issue
Previewing 4 State Conventions and 8 lowa Group Meetings

FULL
SERVICE
BANK

Ringing the Bell for Full Service Banking

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

Page 34

Safekeeping service . . . from MNB
A recent continuing survey by Northwestern Bank
er shows “ Safekeeping” to be second on a list of
services important to country banks. M N B’s securi
ty facilities are among the nation’s most advanced,
and our massive new vaults, like the one above, are
the truly safe place for your bank securities. For
peace of mind, enter your portfolio for safekeeping
at MNB. Service like this is one big reason why half
of all Iowa banks are MNB correspondents.

So many ways we can help you .

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Federal Reserve Bank of St. Louis

H ahoncA

C E D A R R A P ID S

MEMBER F.D.I.C.

T H E F U L L S E R V IC E B A N K F O R T H E B A N K S O F IO W A

The Northern Trust’s
new building addition...
now open and ready to serve you!
We’ve just put the finishing touches
on our new building addition—four
teen stories tall, three stories below
ground, and encompassing almost
half a million square feet of space.
By the end of the year, the new
addition will “ merge” completely
with our original building on LaSalle
Street, and all six floors of that
building will have undergone re
modeling.
One big change you’ll find in the
newaddition istheamount of space
devoted to our correspondent bank
ing business. Fromtheseexpanded
facilities—in the heart of Chicago’s
financial district—we will be able to

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Federal Reserve Bank of St. Louis

serve you better than ever and to
help you serve your own custom
ers better, too.
Along with regular correspondent
services, The N o rthern T ru s t
offers assistance in the develop
ment of commercial banking busi
ness, a complete range of interna-

NORTHERN
TRUST
COMPANY

BANK

NORTHWEST CORNER LASALLE 4 MONROE
Chicago 60690

• Financial 6-5500

• Member F.D.I.C.

tional services, trust and bond fa
cilities, and many specialized serv
ices—counsel on electronic ac
counting . . . assistance in port
folio management . . . and help in
such areas as bank remodeling,
auditing, accounting, and opera
ting systems.
We invite you to learn the full
story on our correspondent bank
ing service, now being provided
from new, larger quarters—and
we’d welcome your visit to our new
building addition. Write or call Mr.
N. Hall Layman, Vice President,
Correspondent Banking Depart
ment, The Northern Trust Bank.

CONFERENCE
ROOM

Business
Problems
Solved Here
The men who comprise
The First Team at
First National Bank are
more than just bankers.
To give good service to
their businessmencustomers, they must be
knowledgeable in many
business fields. No
matter what your field
of business or where
you are located, there’s
a First Team member
who knows and under
stands your problems. To
learn the many benefits
of First Team service,
phone First National
Bank— Kansas City’s
Financial Service Center.

FIRST .NATIONAL BAN K
o fi X a m m

•

C ity ,

Member F.O.I.C.

•

MAIN OFFICE — 10th & BALTIMORE
Drive-In Bank — 13th & Washington
FREE PARKING AT BOTH LOCATIONS

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Federal Reserve Bank of St. Louis

Let The
First Team
work for you!

Sidney Maestre Dies
Sidney Maestre, chairman of the
executive committee of Mercantile
Trust Company, St. Louis, died April
2 of a heart attack at the Mari deVilla
Retirement Cen
ter.
A St. L o u i s
banker since 1912,
Mr. M a e s t r e
achieved national
recognition, n o t
only in the finan
cial field, but also
for his many civ
ic and charitable
endeavors.
S. M A E S T R E
In 1931, he was
elected president of the Mississippi
Valley Trust Company, and in 1951,
became chairman of the board and
chief executive officer of Mercantile
Trust Company, formed by consolida
tion of Mississippi Valley Trust Com
pany and the Mercantile-Commerce
Bank and Trust Company.
In 1962, be was appointed a member
of the Federal Advisory Council of
the Federal Reserve System. He was
a director of General American Life
In s u ra n c e Company, Granite City
Steel Company, M is s is s ip p i Glass
Company, Missouri-Kansas-Texas Rail
road Company, Transit Casualty Com
pany, Trans World Airlines, Inc., and
Walsh Refractories Corporation.

Talcott Promotions

Judson J. Mohl, Russell B. Donahue
and Edward J. Eckert have been
elected senior vice presidents of James
Talcott, Inc., it was announced last
month by Herbert R. Silverman,
chairman of the major industrial
finance company.
Previously the three men had been
vice presidents.
In his new post, Mr. Mohl will be
regional manager of a newly-estab
lished northeast region with head
quarters in Boston.
Mr. Donahue has been named man
ager of the newly-established south
eastern region and will make his
headquarters in Atlanta.
Mr. Eckert will continue to head
Talcott’s operations in the eight-state
western region from his base in Los
Angeles.
Arthur J. Andersen has been elected
secretary of James Talcott.

Transferred to New York
à
t
hV

Neil C. O. Brogger, vice president
and a veteran banker who has had
charge of Bank of America’s equip
ment finance and leasing department
in northern California, will become
vice president and assistant represent
ative in the B of A New York office.

Oldest Financial Journal West of the Mississippi

for your M A Y , 1965, reading
71st Y ear

No. 9 3 4

EDITORIALS
26

Across the Desk from the Publisher

FEATURE ARTICLES
12
19
33
34
36
38
40
42
45

The Bankers’ Market Place
Frontispage—
8 Rules for Newspaper Ads
Ringing the Bell for Full Service Banking— M. M. M cM ichael, Jr.
A Graphic View of Management Continuity
Independent Bankers U rge, “ Remove Saxon”
Illusions in Installment Lending— J. R. M orran
Bankers You Know— E d H. Spetman, Jr.
1965 A d Budgets Larger

STATE BANKING NEWS
57
58
63
64
66
69
70
71
73
75
76
79
80
82
84
92
98
100
102
105
108
114

Minnesota News
Twin City News
South Dakota Convention Program
You W ill See Them at the South Dakota Convention
Sioux Falls Committees Prepare for Convention
North Dakota Convention Program
North Dakota Convention Committees
You W ill See Them at the North Dakota Convention
Montana News
Colorado Convention Program
W yom ing News
Nebraska 68th Annual Convention Program
Nebraska Convention Calendar
Omaha News
Direct Verification Is W ork in g— H en ry E. L ey
You W ill See Them at the 68th Annual Nebraska Convention
Nebraska Convention Committees
Group Presidents Report Farm , Business Outlook
Lincoln News
Iowa News
Des Moines News
Group Meeting Programs Listed

OTHER FEATURES
130
130

In the Directors’ Room
Index of Advertisers

NORTHWESTERN BANKER
306 15th S tr e e t, Des M oines, Io w a 5 0 3 0 9 , Telephone ( A r e a Code 5 1 5 )

Chairman

Publisher

C lifford De Puy

M alcolm

Editor
K. Freeland

Associate Editor

M ild re d Savich

Field Representative
A I Kerbel

Ben J. H a lle r , Jr.

Associate Editor

Larry W . N o th w eh r

Advertising Assistant

244 -81 63

Circulation Department
Lena Sutphin

Field Representative
Joe M . Sm ith

D avid L. Lendt

Auditor
Bertha Soderquist

Field Representative
Paul M asters

Frank P. Syms, V ice P residen t, 550 F ifth A venue, N e w York 3 6 , JUdson 2-7 1 2 6

No. 934. N orthw estern Banker is published m onthly by the N orthw estern B anker Company, 306 F ifteenth Street, Des Moines, Iow a 50309. Subscription 50c
copy, $4 per year. Second class postage paid at Des Moines, Iowa. Address all m ail (subscriptions, change o f address, Form 3579 m anuscripts
for per
FRASER
m ail items to above address.

Digitized
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Federal Reserve Bank of St. Louis

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Federal Reserve Bank of St. Louis

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I NSURANCE

COM PA N I E S

Executive O ffices— Broadway at 34th Terrace, Kansas City, Missouri 64141
Old Security Life Insurance Company— Old Security Casualty Insurance Company

L eonard R. D a w so n

J a m es C. G arber

Regional Service Representative

Ross

F. F orbis

Assistant Vice President

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Federal Reserve Bank of St. Louis

Assistant Vice President

J o h n J. D e l a n e y
Assistant Vice President

F red N. C o u l s o n , J r .
Vice President - Sales

These Men Can Show You THE DIFFERENCE
Northwestern Banker, May, Ì96S

Take the Gamble
out of
Home Improvement
Loans...

AU TO M ATED H A Y IN G — An all-new PTO train of power from Massey-Ferguson
makes haying a one-man operation. Here the new M F 150, medium-sized tractor in
M F ’s new line, pulls the new MF 12 PTO baler, and the improved M F 21 PTO bale
thrower. A three-joint PTO hitch cuts power variation on turns. Double outer packer
fingers and a wider pickup makes this 80-strokes-a-minute baler a fast worker. The
M F 21 bale thrower is controlled from the tractor to place bales where they are wanted
in the wagon.

Get M ore P ro fit
W ith 100% S a fe ty !
Hundreds o f banks from coast to
coast are now shifting the risk to
Insured Credit Services. Under our
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banks receive 100% reimbursement
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Bankers establish own finance rate.
I.C.S. p ro te ctio n provides greater
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Insured Credit Services is the first
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Why not find out how our plan can
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D o n 't ta k e c h an ces—
S h ift the ris k to L C. S.

IN S U R E D CR ED IT
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IN C .
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Banker, May, J965
Northwestern
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

M a sse y -F e r g u so n U nveils
\ e ir .

P o w e rfu l F a rm T ra cto rs

from a new concept in
SPRINGING
farm power, a whole new genera

tion of farm tractors from MasseyFerguson was uneviled this spring at
a special showing in Mexico City for
MF dealers from all parts of North
America. Also on show were new im
plements to go with the big new trac
tors; and a whole tough new line of
industrial and construction machin
ery.
Massey-Ferguson reports they’re
clean, rugged with big diesel or gaso
line engines that snap to on the cold
est mornings with extra power for
hard work.
The first eye-catching impression of
all the new tractors is striking modern
front-end treatment and clean-line sil
houettes. Many engineering advances
are built-in. Larger models have new
hydraulic pressure control that puts
power where it’s needed in trailing
implement work. Stepped-up horse
power and a wide variety of power
options are hallmarks of the new line.
Incorporating 40 years of tractor
making know-how and 14 years of
leadership in the world market, in its
powerful new design, the MF 135 re
places the familiar MF 35 that now
works on more North American farms
than any other tractor. On the diesel
version direct fuel injection means
snappy cold weather starts.
The MF 150, another member of the
new line, is a medium-sized workhorse
for general farm use. Everything is
new from the ground right up to its

modern styled sheet-metal fenders and
hood, and its beefed-up power options.
Easy power steering and a vertical
exhaust pipe are two features of the
new MF 165 tractor that make long
days in the field seem shorter. Con
trols are easier to get at, and a newtype seat suspension helps reduce fa
tigue. With its four-cylinder 51 horse
power diesel or 47 horsepower gaso
line engine, the 165 meets a real need
in the medium power range.
Farmers who have been asking for
a bigger medium-sized tractor now
have it in the MF 175. This rugged
four-five plow powerhouse growls
through mud. Fast, powerful action
on mounted implements comes from
extra capacity built into the hydraulic
system.
Another new one is the hefty MF
180. With its four-five plow power
and 3,000-pound lifting capacity for
the heaviest implements, the MF 180
is built to go just about anywhere.

Phoenix Promotions
Promotions affecting two Valley Na
tional Bank officers in Phoenix have
been announced by president James
E. Patrick.
William H. Benzel, commercial lend
ing officer at the home office, is ad
vanced from assistant cashier to as
sistant vice president.
Robert J. Lambie, installment loan
officer at the 43rd Ave.-Thomas Rd.
office, is promoted to assistant man
ager.

Accidents do happen, transit letters are
sometimes lost or destroyed. With Recordak
microfilming, the loss is a temporary incon
venience, at most. Recordak’s unique fac
simile print service provides replacement
facsimile prints o f any items lost in transit,
at no additional charge.
Just as important, protection for vital
bank and depositor records is assured. M od

ern Recordak microfilmers let you expose
twin-film rolls simultaneously . . . one for
reference, a second for off - the - premises
security storage.
Call your local Recordak representative
for complete details on modern security
recommendations, or write: Recordak Cor
poration, 770 Broadway, Department 0-5,
New York, N. Y. 10003.

R ecord security problem s can be solved in a w o rd —M ic ro film

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Federal Reserve Bank of St. Louis

W C D P D D IÇ

S U B S ID IA R Y O F E A S T M A N K O D A K C O M P A N Y

R eco rd a k M a k e s F ield Fhanf/es
CORPORATION has
RECORDAK
announced a number of important
promotions in its field managerial ex
ecutive staff.
Neele S. Barner, assistant manager,
midwest region, has been promoted to
general manager, midwest region with
offices in Chicago. In his new post,

J. K. McDaniel, southwest regional
manager at Dallas, has been appointed
general manager, western region with
offices in San Francisco. He has been
succeeded at Dallas by Lucien W.
Bruce, formerly Washington branch
manager.
Lloyd H. Downing, Jr., of the Chi
cago branch sales staff, has been ap
pointed manager of the Indianapolis
branch.

Elected Vice President

N . S. B A R N E R

H. V . M A T S O N

Mr. Barner will be responsible for the
marketing of Recordak microfilming
equipment and services through the
eight Recordak branches which com
prise the midwest region.
Howard V. Matson of the Chicago
branch sales staff, has been appointed
manager of the Milwaukee branch.
He joined Recordak in 1937, later be
came a sales representative and since
1948 has been in the Chicago area.

George Kadel has been elected vice
president of Bankers Trust Company,
New York, it was announced by Wil
liam H. Moore, chairman of the board.
Mr. Kadel, who is assigned to the
pension trust division—investment,
was previously an assistant vice pres
ident.

Two Diebold Appointments
Earl F. Wearstler has been ap
pointed vice president of the corpora
tion and general manager of the bank
division of Diebold, Incorporated,
President Raymond Koontz announced
recently.
Mr. Wearstler, a 17-year veteran em
ployee at Diebold, had served as gen-

eral sales manager for the company’s
bank division since returning to the
company’s home office, Canton, Ohio,
in January of this year.
The new duties of the 41-year-old
executive also will include supervi
sion of the company’s nationwide
service organization.
Mr. Koontz also announced the ap
pointment of Rodney T. Sampson to
the position of advertising manager.
Joining the Ohio-based bank, office
and protection equipment manufac
turer in 1959, Mr. Sampson served as
product manager for printing and
guides. In this position, he invented
the Diebold Alpha Numeric System
(DANS)—a patented alpha numeric
approach to account numbering. He
has solid experience in the graphic
arts.

1st National, Chicago
Appointments Announced
Following the April monthly meet
ing of the board of directors of The
First National Bank of Chicago, Ho
mer J. Livingston, chairman, an
nounced the promotions of two officers
and the election of a new officer to the
bank’s official staff.

With our compliments . . .

R. G. D U N N , JR.

TYPICAL TRUST PROBLEM
RECOMMENDATIONS

A R IZO N A
DIRECTORY OF MANUFACTURERS

Would you like a copy?
Write our Research Dept.,
Box 71, Phoenix

Banker, May, 1965
Northwestern
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

These practical investment sugges
tions (based on actual cases) are
among the tools regularly supplied
Studley, ShupertTrust Investment
Council Members. An invaluable aid
for developing trust account policies.
Community banks from coast to coast
regard Council Membership “ a
must.” Write for details.

STUDLEY, SHUPERT
Trust

Investm ent

860 Suburban Station Bldg.

C oun cil
Phila., Pa. 19103

B. L. H A U E N S T E I N

R. Garth Dunn, Jr., assistant cashier
in Division “F,” the correspondent
bank division of the commercial loan
ing department, was elected assistant
vice president. Mr. Dunn works pri
marily with the banks and bankers in
the Chicagoland area.
Bennett L. Hauenstein has been
elected assistant vice president in
Division “F” and will serve the bank
in handling farm management and
farm credit problems. Mr. Hauen
stein majored in agricultural econom
ics at the University of Missouri
where he graduated with a B.S. de
gree. He comes to the bank from
the Federal Intermediate Credit Bank
of St. Paul where he was vice presi
dent and head of the credit depart
ment.
William D. Clay, assistant cashier
in Division “E” of the commercial
loaning department, was elected as
sistant vice president.

-T

Do your customers know this emblem better than you do?
Each month 90 million people see this symbol o f quality, integrity
and service in national magazines. Doesn't it make good sense for
you to display the Full Service bank emblem? The public will seek
it out as representing a nationally advertised institution it can trust.
More than 5,200 banks, representing 70 per cent o f the
nation’s bank deposits, are members o f the Foundation for C om
mercial Banks. They are working together to promote their busi
ness by participating in the Foundation’s vigorous national adver
tising program. They are active in a time that calls for action. Why?
Because the commercial banking industry has a powerful story to
tell—the Full Service story.
What can you do?
Two things. N o. 1—Join the Foundation and add your means
toward our comm on end. And, No. 2—Cash in on the Founda
tion’s program by displaying this 7-Star emblem prominently in
your bank and on your printed material.

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Federal Reserve Bank of St. Louis

*
Á® v . ..
FULL
'
SERVICE
BANK

Foundation for Commercial Banks
Philadelphia National Bank Bldg.
Philadelphia, Pennsylvania 1 9 1 0 7

□

Enroll our bank as a member and bill us at the rate
of $10 per million dollars of deposits.

□

Send the new Foundation decal.

□

Send complete information about the Foundation.

N A M E ______________________________ ______________________________ _
T IT L E ___________________________________________________ _________
BAN K

_________________________________________________________

A D D R E SS________________________________________________________ _

Northwestern Banker, May, 1965

A Page Telling What’s New for Banks and Bankers

For information, contact Timecard
Calculator Company, Box 17, Van
Nuys, Calif.

Each month the Bankers’ Market Place will bring you listings of new
products, specialty items, banking equipment, and gift items which will
help you and your staff do a better job. This is the selection for this month.

AMAZING new breakthrough
A Npermitting
same day service for

The Bankers’ Market Place

NEW “Deposit Mailer” kit is now
available for banking by mail.
Customers like the fully personalized
and encoded deposit ticket that pro
vides a temporary receipt of the de
posit mailed.
Banks save time and money. The
depositor’s name and address is im
printed as well as the account number
in magnetic ink, saving the time
needed to verify and encode the docu
ment. Postage is saved by returning
the validated receipt with the custom
er’s statement.
A three-part deposit ticket is also
available.
For further information, contact
Continental Bank-Supply C om pany,
Box 266, Mexico, Mo.

Time-Card Calcula
A Ntor”“ INSTANT
designed to make job time
and payroll computing easier, faster
and more accurate has been devel
oped. Timekeeping, often a tedious
bottleneck in payroll preparation and
job costing, is subject to frequent er

rors when subtracting P.M. from A.M.
and mistakes such as figuring 10:26
minus 9:52 as 74 minutes. The calcu
lator gives answers accurately—to the
minute—in a fraction of the time
taken by usual methods. Operation is
simple so that anyone can use it.
Starting and ending times are cali
brated on a 9% inch plastic disk. Cor
rect elapsed time is given instantly by
turning an inner disk. Price—$7.50.

pre-inked rubber stamps will be of in
terest to bankers. This new rubber
stamp, developed by the Faymus Divivision of Bankers and Merchants, Inc.,
requires no stamp pad. Each stamp
carries its own supply of ink, in a
choice of seven colors, and will deliver
up to 30,000 impressions.
The big breakthrough is in manufac
turing time. Previously customers
were required to wait two to three
weeks for delivery. Now if the local
manufacturer has your order by 9:00
a.m., the completed stamp can be on
its way back to you by 3:00 p.m.
For more information or to order
Pre-inked Rubber Stamps, specify the
reading matter you want to appear on
the stamp and contact Iowa Stamp
and Marking Company, 537 5th Ave
nue, Des Moines, Iowa.
COMPLETE home do-it-yourself
popcorn kit is offered as an item
for door prizes and special gifts from
financial institutions. The company
also offers a portable machine as a
loan-out for PTA groups, schools, etc.,
for fund raising purposes. For de
tails on how banks use the popper
and other ideas, write: Noble Pop
corn Farms, Sac City, Iowa 50583.

has eliminated the mouse
CONVOY
trap card holder from file fronts

RUBBER STAMPS

30,000 IMPRESSIONS
NO INK PAD NEEDED!
EE-INKAELE
Send us this coupon and we'll have more information to you by
return mail.
Name___________ ____________________________ _ C ity______
Bank

___________________________________ State.___ ___

IO W A STAMP AND MARKING COMPANY
(BOB KNOTT)

537 Fifth A ven u e
Banker, May, 1965
Northwestern
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Des M oines, Iowa 50309

and cleverly — 1. recessed the pull
handle, 2. lowered the handle for
easy pull and operation (lower grav
ity), 3. added a new card pocket
furnished with 3 x 4 inch index card
(four indexings are possible by turn
ing and reversing the card).
The innovations make the smooth
files entirely acceptable in appearance
for front office use in active record
keeping and ideal for inactive record
storage.
The files are made of Chem-Board,”
Convoy’s trade name for the process
of chemically rigidizing heavy duty
corrugated board. This treatment not
only gives them s e lf-s u p p o r tin g
strength, even when stacked ceiling
high without shelving, but the mate
rial also has a lasting resistance to
moisture and vermin. Produced in 21
stock sizes from 3 x 5 inch to 18 x 22
inches.
Source: Lennox Distributor Divi
sion, Convoy, Inc., Box 218, Station
B, Canton, Ohio 44706.

Bank of America wants to
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Federal Reserve Bank of St. Louis

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Samsonite luggage . . . a Kodak 800 Instamatic
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Kodak 800 Instamatic 35mm camera
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RCA-Victor Home Entertainment Cen
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AWARDED IN SPECIAL DRAWINGS—
JUNE 15, JULY 15, AND AUGUST 15.

★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★
SPECIAL BONUS PRIZE: TO THE GRAND PRIZE WINNER’S OFFICE
CHOICE OF AN
RCA VICTOR HOME
ENTERTAINMENT CENTER

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

A BAUMRITTER FURNITURE SUITE
including two couches, four
club chairs and a table

AN OASIS HOT AND COLD WATER
COOLER complete with instant coffee
and tea, cups, spoons
and other supplies .
l
/

EM
m

[•

YOUCAN WINOUR SREAT NEW

Island
Holiday
Contest
Who can enter?
Tellers... platform officers... anyone who sells Bank
of America Travelers Cheques to the public— except
employes of Bank of America.

When does it start?
Contest starts May 15 and lasts all summer long—
through September 15.

How does it work?
Official entry blanks will be distributed to you through
your employer. Each time you sell Bank of America
Travelers Cheques, just attach an entry blank to each
Purchaser’s Application.
Drawings will be held to select the names of win
ners. The more Bank of America Travelers Cheques
you sell— and the more entry blanks you send in—
the better your chances to win.
Special Monthly drawings will be held for the RCAVictor Home Entertainment Centers on June 15, July
15 and August 15.
b

Drawing for the Grand Prize Awards will be held
after the close of the contest on September 15. Win
ners of Special Awards will also be eligible for Grand
Prize Awards.

So be on the lookout for customers who are travel
ing or planning trips! Suggest they protect their travel
funds with Bank of America Travelers Cheques— the
world's most accepted bank cheques. They’ll appre
ciate the advice . . . your employer will appreciate the
extra profits . . . and you’ll improve your chances to
win a prize in the Island Holiday Contest!

CONTEST RULES:
1. When attaching entry blanks to Purchasers’ Applications,
please use paper clips only. (Bending or stapling makes it
difficult for our electronic equipment to process these forms
as quickly and easily as usual.)
2. No substitute prizes will be awarded. All prizes have been
selected by Marden-Kane, Inc. of New York.
3. Tax liability on all prizes will be the sole responsibility of
the prize winner.
4. Grand Prize winner must complete the island tour by Sep
tember 30, 1966.
5. The contest is void where prohibited, taxed or restricted by
Federal, State or local laws or regulations.

6 . Entry in the contest constitutes full permission to publish
names, addresses and photographs of winners without further
compensation.
7. Winners will be determined by a public drawing held by the
Bank of America, from all entry blanks received during the
contest period.
8. Winners will be notified by mail promptly upon completion
of each drawing. A complete list of winners will be on file at
Bank of America. San Francisco.

BANK OF AMERICA TRAVELERS CHEQUES
...w o rld 's most accepted bank cheques!
B A N K OF A M E R I C A N A T I ON AL T RU S T A N D S A V I N G S A S SO CI ATI ON

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

•

M E M B E R F E D E R A L DE POSI T I N S U R A N C E CO RP OR A TI ON

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

It’s easy to be
an expert
on governments
(when you know the right people)

Trading in governments can be a
very ticklish business.
But dealing with us makes your
capacity to handle them as efficient
and skillful as our own.
We’re one of the very few primary
dealers in government securities.
We’re also highly knowledgeable

in federal agency securities, munici
pals, tax exempt notes, and a variety
of other investments.
The simplest and wisest way to
manage your portfolio (or a custom
er’s) is to know the right people.
And you do.
The people at

C O N TIN EN TAL B A N K
Continental Illinois National Bank and Trust Company of Chicago
© C .l.N.B. 1 9 65

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

231 South La Salle Street, Chicago, Illinois 60690 • Member Federal Deposit Insurance Corporation

Northwestern Banker, May, 1965

May Group Meetings
Offer Profitable Ideas To Iowa’s Banking Fraternity
F in a n c ia l e x p e rts fro m a ll o v e r th e sta te poo l
in fo rm a tio n , e x c h a n g e n e w
k n o w le d g e g a in e d
th ro u g h th e p a s t y e a r's e x p e rie n c e .
W e w e lc o m e
this o p p o rtu n ity to visit w ith yo u , to c o m b in e forces
to kee p Io w a s econom ic a n d b a n k in g progress
m a rc h in g a h e a d .

Central N ational Representatives W ill
Join Fellow Bankers fo r These W orthw hile Sessions

BERNHARD C.
GRANGAARD

President

DALE C. SMITH

Vice-President

EVERETT
GRIFFITH

V ice-President

RICHARD L.
SMITH

EDDIE A. WOLF

Assistant
V ice-President

NATIONAL BANK AND TRUST COMPANY
Fifth a n d

Locust S tre e t . . D es M o in e s

D r iv e -In W a l k - U p T e ller — Fifth a n d G r a n d
Member Federal Deposit Insurance Corporation
Northwestern Banker, May, 1965

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

Northwestern Banker, May, 1965

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

A m i . i t . f c V / f r f f O ff #'#*11 I f Off

1 1 71 # f i o f f # Xen* O rleans
over 1,000 younger bank
W ELL
men and women from all sec
tions of the country are expected to
attend the 63rd annual convention of
the American Institute of Banking at
Hotel Roosevelt in New Orleans, May
31-June 4.
The advance program for the con
vention, announced by N. A. Moore,
Jr., president of the Institute and vice
president, City National Bank, Wich
ita Falls, Tex., lists many prominent
speakers. Dr. A. C. Van Dusen, vice

chancellor, University of Pittsburgh,
and Dr. Travis A. White, president,
Midwestern University, Wichita Falls,
Tex., will address the general conven
tion sessions. Reno Odlin, president
of The American Bankers Association
and chairman of the board, The Puget
Sound National Bank, Tacoma, Wash.,
will greet the delegates on behalf of
the A.B.A.
The delegates will be welcomed to
New Orleans by A. E. Roemershauser,
vice president, W h itn e y National

FARM
C R E D IT
TO D O U B L E
IN TEN YEARS*
H ow do you plan to share
in this business g ro w th ?
Today’s farmer is now looking more to the lending agency that
fully evaluates his sound programs as well as his business mana
gement skills.
To solidify relations o f your bank with progressive farm ers who
expect to find agricultural lending service available, Doane’s
'“F A R M IN G FO R P R O F IT ” is an effective bridge. It maintains
frequent contact with the farm customer . . . and there is nothing
quite as significant to reflect the professional nature of agricultural
service from your bank’s farm department.

For only pennies per month, you can send your customers
authoritative guides and seasoned farming judgment from
America’s largest private staff of agricultural specialists.
There is no better way to strengthen the bonds you have with
your entire agricultural com m unity at so little cost and so
little effort.
Send today for sample copies of FARMING FOR PROFIT,
and details of the easy-to-use personalized messenger that works
for you at a cost of pennies per customer.
Bank Services Dept.

DOANE

A G R IC U L T U R A L
D ep t. 77

S E R V I C E , IN C .

8 9 0 0 M a n ch ester R d.

• St. L o u is , M o . 6 3 1 4 4

^E s tim a te by fa rm c re d it a n a lysts

Northwestern Banker, May, 1965

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

Bank of New Orleans, general chair
man of the convention, who was pres
ident of A.I.B. in 1954. Dr. White
will address the opening session, and
the year’s outstanding A.I.B. student
in graduate work, whose identity is
not revealed in advance, will receive
the Harold Stonier Award for scholar
ship.
Other highlights of the five-day
meeting include the National Public
Speaking Contest for the A. P. Giannini Educational Endowment prizes
and the Robert C. Rutherford National
Debate Contest. Elimination contests
leading to the convention finals have
been going on for some months
throughout the country.
Workshop sessions are scheduled
for Monday and Thursday afternoons.
Seated at tables for 10, representatives
from chapters of comparable size will
exchange ideas on assigned topics at
each session. Group discussions will
follow the roundtables.
Installation of officers will take
place on the final day of the conven
tion. Vern Waldo, A.I.B. vice presi
dent and vice president of First Na
tional Bank of Nevada, Reno, will be
installed as president. There are three
candidates for the vice presidency:
Raymond D. Bositis, assistant cashier
and manager, Worcester County Na
tional Bank, Holden, Mass.; Thomas
W. Jones, vice president and man
ager, Fidelity National Bank, Baton
Rouge, La., and William E. Vojta, as
sistant vice president, The First Na
tional Bank, Chicago.
Entertainment features of the con
vention will include an informal dance
following the Monday evening session;
an outing on Wednesday afternoon
and evening, and the President’s Ball
on Friday night, which will bring the
convention to a close. There will be
special events for wives of delegates.

-A

To Get Honorary Degree
Herbert V. Prochnow, president of
the First National Bank of Chicago
and former Deputy Under Secretary
of State for economic affairs, will be
the 1965 commencement speaker at
Monmouth College.
The announcement by Dr. Duncan
Wimpress, college president, said that
the Chicago banking executive and
author will deliver the commencement
convocation address on Monday, June
14, and receive an honorary Doctor of
Laws degree from the college.
A native of Wilton, Wis., Mr. Proch
now is a graduate of Wisconsin State
College and the University of Wiscon
sin. He received the Ph.D. degree at
Northwestern University in 1947 and
holds five honorary degrees.

■i

This shopping bag could hold
an idea for your bank.
Your bank, like most banks today, is in constant com
petition for the retail customer's business. The result
is a continuing quest by promotion-minded banks
for new and imaginative ways to merchandise their
services.
To that quest Chase Manhattan devotes a good deal
of time and ingenuity. Case in point: the shopping
bag above. In a recent two-month period, we gave
away 400,000 of them —with a return in customer
good will that far outweighed the modest cost.
Chase Manhattan has used special promotions cre-

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

atively and consistently — ranging from shopping bags
to flower seeds to Christmas check lists. If you'd like
to know more about the application and effectiveness
of such techniques in the merchandising of bank
services, we'll gladly give you the benefit of our ex
perience. Both to stimulate your own promotional
thinking.. . and to indicate that in special corre
spondent services, as in the big, basic ones, your bank
has a friend at Chase Manhattan. When you next visit
New York, come in and talk to our people about this
merchandising.

THE C H A SE M AN H ATTAN B A N K
1 Chase Manhattan Plaza, New York, N. Y. 10015

M e m b e r Federal D e p o s it Insurance C o rp o ra tio n

Northwestern Banker, May, 7965

tinnii o f A m er ic a A n n ou n ces
T ra velers C heques C on test
N K OF A M E R I C A has an
BAnounced
that it has firmed plans
for a 1965 travelers cheques contest
for employees of seller banks. This
is the second contest for Bank of
America; it sponsored one in 1964 as
part of its promotional activities in
the sale of the cheques.
The 1965 contest will last the entire
summer, from May 15 through Sep
tember 15. Vernon C. Richards, vice

president and executive head of the
bank’s travelers cheques department,
said the bank decided to proceed with
the 1965 contest after an overwhelm
ing response from seller correspond
ents in 1964, when the bank drew an
estimated 400,000 entries from all 50
states.
This year’s contest has been titled
“ Island Contest.” The grand winner
will have a choice of either the Ha

waiian Islands or Puerto Rico and the
Virgin Islands, again with a complete
line of luggage, movie camera and
projector, and $2,000 in Bank of
America travelers cheques. There are
hundreds of other prizes, including a
special bonus prize for the bank that
comes up with the grand winner.
New features in the 1965 contest
include these:
• In addition to the United States,
the contest will be open to employees
of seller banks in Canada and in Mex
ico;
• In a major change in plans from
last year, there will be monthly draw
ings (RCA home television entertain
ment centers) during the contest in
addition to the grand drawing early
in the fall.
Mr. Richards commented that the
response in 1964 had been beyond ex
pectations. He said the contest was
the first of its kind to be sponsored
by a bank. The 333 winners in last
year’s contest were personally drawn
from a drum by Bob Hope and actress
Dina Merrill.

Joins Mercantile Trust

Where in the world is
RENO ODLIN?
May 10-11

North Carolina Convention — Pinehurst

May 12-13

Delaware Annual Meeting — W ilm ington

May 13-15

South Dakota Convention — Sioux Falls

May 24

Illin o is Convention — Chicago

May 25

Missouri Convention — Ka'nsas City

May 31-June 4

National AIB Convention — New Orleans, La.

Reno’s out of town a lot lately, speaking on behalf of the in
dustry as president of the American Bankers Association. But
Dutton Hayward and the remaining 369 staff members are
working harder than ever to handle all your correspondent
banking needs.

PUGET SOUND NATIONAL BANK
Tacoma—Western Washington’s most progressive bank
R eno Odlin, Chairman
Dutton Hayward, Vice President and Correspondent Director

Northwestern Banker, May, 1965

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

Robert B. Mackey, formerly commis
sioner of finance of Missouri and for
many years the state’s chief bank
examiner, has joined Mercantile Trust
C o m p a n y , S t.
L ouis, and will
serve as a consul
tant to the bank’s
correspondents in
Missouri.
In making this
a nno unc e me nt ,
Kenton R. Cra
v e n s , chairman
of the board, said
r. b . m ackey
that Mr. Mackey,
utilizing his long
and extensive experience with the
state’s banking operations, will pro
vide assistance and counsel on man
agement functions to Mercantile’s
Missouri correspondents. Mr. Mack
ey’s consultant help adds another
service to the comprehensive Mercan
tile program for its correspondents
and is expected to provide valuable
help to all Missouri bankers.

Wins Law Award
George A. Murphy, chairman of the
board of the Irving Trust Company,
New York, has been named winner of
the annual Law Achievement Award
of the New York University Law
Alumni Association.
Presentation of the award was made
at the group’s 77th annual dinner last
month at the Hotel Waldorf-Astoria
in New York.

—does Mercantile
m ean so much to
so m any correspondents?
Possibly because of our size— though
size is only a small part of the story.
Far more important, bankers tell us, are the extra
features our size makes it possible to bring you.
More special services, for instance. More banking
specialists. More facilities. More, in fact, of
everything you want a correspondent for.
Bankers seem to like that.
You will, too, when you call your Man from
Mercantile. You’ll find him proud of his bank,
even prouder of the help he can give you.

MERCANTILE
ST. L O U IS . MO.
YOUR M EN
EROM

T R U ST

COM PANY

MEMBER
F. D. I. C.

M E R C A N T IL E

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

nnh=.

Northwestern Banker, May, 7965

Safety, economy, convenience—
facts about securities services
at Bankers Trust Company.

When your bank makes changes in its securities
portfolio, or a change occurs in one of its trust
or custodian accounts, Bankers Trust Securities
Clearance Service can save you both time and
money.
We accept responsibility for the physical han
dling of all types of securities and money mar
ket instruments, including commercial paper,
bankers acceptances, and bank certificates of
deposit.
As your New York clearing agent, and acting
with your brokers and dealers upon your in
structions, we are able to provide you with
maximum protection and control. And because
proceeds of sales are normally credited to your
account on the date of settlement, you get the
earliest possible use of your funds.

U.S. Government and Municipal Securities
We handle the purchase and sale of such secur
ities for your account. Our broad experience in

Northwestern Banker, May, 7965

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

Edm und G. F a rre ll, Bankers T ru st V ic e P reside nt, d ire c ts
one o f the n a tio n ’s m ost exp e rie n ce d s e c u ritie s o p e ra tio n s.

the field enables us to assist you in the forma
tion of investment programs in both Govern
ment securities and municipal bonds. We also
act as primary dealer in securities of the U.S.
Government and its Agencies, and as under
writer of municipal issues.

Speedy Money Transfer

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

When you call on us in connection with your
securities transactions, you can be sure that
your funds will be on hand, at the time and
place you want them. Many people who use
Bankers Trust’s money transfer facilities for
the first time are impressed with their speed
and scope. Bankers Trust handles the transfer
of more than one billion dollars every day, to
and from every point on the globe. Our commu
nications facilities include The Bank Wire and
all other modern methods.
E le c tro n ic data pro ce ssin g is one o f the m odern to o ls
used by B ankers T ru st to p rovide custom ers w ith fa s t,
e ffic ie n t s e cu ritie s se rvicin g .

Coupon Collection Service
Bankers Trust handles the collection of bond
coupons of all types, no matter where the place
of payment. You’re credited with the full value
immediately upon receipt of the matured cou
pons on domestic items. Others are credited on
final collection. Not only does the Bankers Trust
Coupon Collection service give you the quick
est availability of your funds, but it reduces
the time and expense of such routine operations
as sorting, forwarding to paying agents, and
following for payment.

BANKERS
NEW YORK, N. Y. 10015

9o5

•

If you have read this fa r...
. .. and are interested in this factual account of
Bankers Trust Securities Services, you may be
even more interested in how these services can
solve your specific problems. Phone or write for
more information.
In fact, we hope you will let us show you how
helpful Bankers Trust can be to you in every
aspect of correspondent banking.

TRUST
Call 212-692-6525

•

COMPANY

Cable BANKTRUST NEW YORK

Member Federal Deposit Insurance Corporation

Northwestern Banker, May, 7965

A C R O S S tfi£ D E S K
[jt im t

Q qW i^ (D a v id

Q . W v Uju v :

Senior Economist, Department of Banking
and Research, Washington, D. C.

Your recent study entitled, “ Bank Formation
and the Public Interest,” released recently by the
Comptroller of the Currency, presents some inter
esting statistics on 64 newly-organized national
banks chartered in 1962.
You found that the average rates of return for
the banks which opened for business in 1962
moved steadily upward during the 1962-64 period.
Ninety-three per cent had positive net current
operating earnings in 1964. A majority of the
banks exceeded their initial projections of both
deposits and loans for two years of operation,
some by a very substantial margin.
At mid-1964, the resources o f the 64 banks stud
ied averaged $5.2 million. The quality of the as
sets of these new banks compared favorably with
that of a large sample of older national banks of
the same size.
Most o f the national banks chartered in 1962
were in suburban metropolitan areas in unit
banking states, that is, states which prohibit
branch banking. New banks in the unit banking
states initially enjoyed higher rates of return
than those in branch banking states, but your re
port states that this advantage has tended to dis
appear.
The study includes an analysis of the effects of
new entry on a sample of older banks. Although
the rates of return fell for some of the older
banks, the average rates remained above that for
all insured banks of the same size. The average
loan-deposit ratio and the average effective inter
est rate on time and savings deposits increased
more for the older banks following entry than
did the all-bank figures in the same period. Some
of the older banks achieved higher rates of de
posit growth and higher rates of loan growth in
the post-entry period than in the period prior to
new entry.
The study found that new bank entry produced

Northwestern
Banker, May, 1965
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

tk &

consumer benefits in the form of extended bank
ing hours, increased availability of certain types
of credit and higher interest rates on time and
savings deposits.

(D & W e Q v h n .

'h i& J w In L :

Minnesota State Banking Commissioner,
Saint Paul, Minnesota.

Taking a courageous step, your department has
launched a thorough investigation of the opera
tions of the State Capitol Credit Union.
The Union is the largest of its kind in Minne
sota and has $20 million invested by some 20,000
shareholders. Among the credit union members
are many legislators and state employees. Even
Governor Karl Rolvaag has disclosed that he used
the facilities of the credit union.
Indications are that the credit union has been
badly mismanaged and that reserves amounting
to about three-quarter million dollars have been
dissipated. The credit union is still accepting
payments but is making no loans. A. J. Snell,
manager, has been replaced. It is understood
that Attorney General Robert Mattson will take
no action until your investigation is completed.
Credit Union operations will receive closer
scrutiny if Representative Otto Bang of Edina
has his say. He and associated conservative leg
islators have introduced a resolution in the house
calling for establishment of an interim commis
sion that would report to the 1967 legislature on
credit unions and their loan policies.
During your time in office, you have tried hard
to make the banking department self-supporting
so as to be able to fully examine all the financial
institutions in Minnesota, including credit unions.
The State Capitol Credit Union case emphasizes
your demands, and it is hoped that all Minnesota
legislators will join with you in the interests of
better supervision. It is time that your depart
ment receive and control its own revenues, be
self-sufficient and entirely industry supported.

The S carb orou g h m an is not the m an with a plan

He has no package or proposal to sell you
when he walks into your bank. He is a bank
counselor. His only sell is the soundness of
the insurance program he evolves after he
has appraised your exposure.
He makes it easier for you to make insur
ance decisions because he can unscramble
any existing jumble and put the pieces in
place so you can see the whole exposure
picture.
He could set up your entire insurance
program before he leaves your bank. He is
that competent. But he prefers first to hud
dle with other Scarborough men. With our
top executive team.
The program he comes back with repre
sents the combined judgement of as experi
enced an insurance group as is available to
the banking community.
A minor advantage of his program will
be the total elimination of premium wasting
inconsistencies. A major blessing is the free
dom from potentially disastrous omissions.
Ask for a professional appraisal of your
insurance program on the Scarborough
man’s next call. Money can’t buy it. But
it’s yours without fee or obligation. If you
have questions that won’t wait, correspond
with us. Scarborough & Com pany, First
National Bank Bldg., Chicago, 111. 60603.

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

Northwestern Banker, May, 1965

28
WHY SHOULD YOUR DEPOSITORS TAKE A CALCULATED RISK WITH PAID
CHECKS WHEN IT COSTS LITTLE OR NOTHING TO BE SURE THEY ARE SAFE?

This ad mat is included in the*
Free “ Security Hallmark"
Promotional Kit!
,

Ï-.

If George could
have banked with
us, he would
George W a sto g to n ^
across a n v er-b u t that

h e ^

cautious. H e used

hP was quite

checks by cutting

them in the form of
,
itor A L L of the
manent cancellation gave a depositor a

advantages of using checks.
been improved since Washington s

tSSES.»»»*---

Put
Your
Check
Here!
IS

are undisputed proofs of payment.
That’s why we cancel by perforation . . . It s best or

account with us. by George!

G le n r ie u

Plan NABAC Regional
Fourteen Indiana bankers from the
Indianapolis area are serving on the
general planning committee for the
16th Northern Regional Convention of
NABAC, The Association for Bank
Audit, Control and Operation. The
convention is to be in Indianapolis
May 9-12 at the Claypool Hotel for
bankers from throughout the Mid
west.
J. Kurt Mahrdt, president of The
Indiana National Bank of Indianapo
lis, is the convention general chair
man.
The convention will offer a wide
range of technical discussions and is
expected to feature one of the largest
displays of modern banking equip
ment and supplies ever assembled in
Indianapolis. Regional as well as na
tional firms are participating in the
exhibits, which will occupy 46 booths
on the ground floor and mezzanine of
the Claypool Hotel.

Credit Unions Expand

Your Name Here!
FREE!
Show your depositors how
you c a n c e l th e ir P A I D
checks to protect against
re-negotiation.

The complete Promotional
Kit is yours for the asking.

?« ¥£ £ m r /

Northwestern Banker, May, 1965

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

Keith W. Ryan, West Des Moines,
has been appointed the Iowa and
Nebraska r e p r e
s e n t a t i v e for
James Tal cott,
Inc., it was an
nounced recently
by Cl ar enc e A.
Adams, vice pres
i dent and man
ager of Talcott’s
Minneapolis d i strict office.
Prior to joining
K. W . R Y A N
Talcott, Mr. Ryan
was general credit manager for Herman M. Brown Company, Des Moines,
International Harvester’s industrial
equipment distributor in Iowa.

S ta te B a n k

J '

re-use or

Named Talcott Representative

C U U U IN S -C M IC A G O C O R P O R A T IO N
t r w N RAVENSWOOD AVE . CHICAGO. ILLINOIS 60640
SALES AND SERVICE IN ALL PRINCIPAL CITIES

United States credit unions con
tinued growing at a near-billion dollar
pace and took in one million new
members in 1964, year-end estimates
show.
CUNA International, Madison, Wis.,
the world-wide organization of the
credit union movement, in issuing the
statistics, also placed the number of
United states credit unions at 22,000,
compared to 21,518 at the end of 1963.
Individual membership was placed at
over 15.5 million, contrasted to 14.6
million a year ago.
Assets of United States credit un
ions were estimated to total $9.025 bil
lion, compared to $8.1 billion in 1963.
Savings were listed at $8,075 billion,
up from $7.1 billion in 1963. Loans
outstanding total $7 billion, compared
to $6.25 billion a year ago.

W e 7 / be seein g you

ON T H E SPRING CONVENTION TR A IL

Harry L. Smith

Leonard J. Schrewe

Arthur Fowler
Vice President
Alabama, Florida, Georgia,
Illinois, Mississippi and
Tennessee

Vice President
California, Colorado,
Kansas and Missouri

Vice President
Alabama, Arkansas,
Louisiana, Oklahoma and
Texas

John R. King
Assistant Vice President
Agricultural Officer

Joseph Orlando

Vice President
Missouri, Oklahoma

Harold G. Kuhlman

E. Leslie Bloom
Assistant Vice President
Illinois, Indiana

Assistant Vice President
Illinois

Raymond T. Swancutt

Assistant Vice President
Missouri

Louis E. Straub

Charles F. Teschner

Assistant Vice President
Arkansas

Assistant Vice President
Iowa, Kansas, Missouri

Charles S. Betz
Assistant Cashier
Louisiana, Oklahoma,
Texas

FIRST NATIONAL BANK

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

MEMBER

FE D E R A L

D E P O S IT

. l o u is
IN SURANCE

C O R P O R A T IO N

Northwestern Banker, May, 7965

A n n ou n ce F i*it A S chool P rogrn n i
HE School of Financial Public Re
lations has just released its 1965
T
catalogue covering the program of
studies to be conducted on the North
western University campus July 4-17.
It will be the 18th year for the School
which is sponsored by Financial Pub
lic Relations Association in coopera
tion with the University.
The freshman class will be limited
to approximately 100 students, and
the class is already approximately 80
per cent filled. In addition, students
who began their studies last summer
will be returning as seniors for a final
two weeks of study.

The 36-page catalogue paints a pic
ture of busy days for those attending,
with classes and seminars scheduled
from 8:30 a.m. to 4:30 p.m. each week
day and half a day Saturday. In
struction is geared to the practical
level, designed to be put to use as
soon as the student returns to his
own institution. Studies run the ga
mut—from business development, ap
plied psychology, and sociology to the
techniques of advertising, publicity,
and salesmanship. Faculty members
are leaders in the fields of education
and finance.
In addition to the classroom pro

gram, students will participate in a
number of workshops, seminars, and
case history studies.
Copies of the catalogue are avail
able on request. Write the Registrar,
School of Financial Public Relations,
120 W. Madison Street, Chicago, 111.
60602.

Allison Coupon Promotes Two
John E. Jones, president of Cummins-Chicago Corp., has announced
the appointments of B. Powers Allbright as vice president and general
manager, and John M. Bellew as sales
manager of Allison Coupon Company,
Inc., Indianapolis, a Cummins affili
ate.

NEW r W orld W id e Coverage
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$5,000 Accident Medical Expense
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We are licensed in:
Arizona, Colorado, Iowa, Illinois, Indiana, Kansas,
Kentucky, Minnesota, Missouri, Montana, Nebraska,
North Dakota, Oklahoma, South Dakota, Texas,
Wisconsin and Wyoming.

Western Mutual Insurance Co.
616 10th Street
DES MOINES, IOW A

A Non-Assessabfe Multiple Line Company— Since 1907
Northwestern Banker, May, 1965

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

P. A L L B R I G H T

J. M . B E L L E W

Mr. Allbright joined the Cummins
organization in 1955. During the last
ten years he has been salesman,
branch manager and regional man
ager for Cummins, much of the time
also representing Allison.
Mr. Bellew has been with Allison
since 1950, representing the company
in the Chicago area, New York and,
for the last five years, in the home
office sales department.

Sets Up $ 2 ,5 0 0 Fellowship
A $2,500 fellowship for graduate
study at Northwestern University’s
Graduate School of Business has been
established by the American National
Bank and Trust Company of Chicago,
Allen P. Stults, president, announced
recently.
The only Chicago bank to make an
annual grant of this type, American
National has had a similar fellowship
at the University of Chicago for the
past six years.
The initial fellowship is scheduled
to be awarded this spring to a male
student in his first year of graduate
business school. The grant provides
financial assistance for his second year
of study. The recipient also will be
given the opportunity of working at
the bank this summer, giving him
practical experience in the financial
world to reinforce his formal educa
tion.
Northwestern officials will select the
recipient and will have absolute con
trol over the execution of the fellow
ship.

WILL FILM ANY HOLDUP
ON THESE PREMISES
If you were a bank robber,
would you try it?

You’d have to be pretty unimaginative to try anything
in this bank.
The minute you did, Photoguard cameras would be
activated. They’d record every move you made. You
might as well leave your name and address.
Better play it smart. Do as the real pros do. When
you see the Mosler Photoguard sign, lay off.
Try another bank that doesn’t show it. Even if it is
getting tough to find one these days.
For information on a Mosler Photoguard system
mail this coupon. We’ll also send you details of Mosler
electronic alarm systems, for 24-hour protection.

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

The Mosler Safe Company
National Sales, Dept. 565
Hamilton, Ohio

Please send me information on:
□ M osler Photoguard
□ Centurion Alarm System
□ Have a M osler representative call.
NAME
TNSTTTi ITTON
ADDRESS
CTTY

STATE

Northwestern Banker, May, 1965

The Chicago airport
whose middle name is International

{Another good reason for doing your hanking in Chicago)
O ’ H are In te rn a tio n a l A irp o rt,

bank, and we will make the wide

world’s largest and busiest, is just

experience and resources o f the

one example o f the vitality and

bank available to you —overloans,

p ro g re s s iv e s p irit th a t m akes

international banking, public rela

C h i c a g o w h a t i t i s —an i n t e r

tions, portfolio review, personnel

HARRIS

national crossroads that is also the

training, automation—and many

Trust and Savings

com m ercial, industrial, financial

other services.

and cultural heart o f the Midwest.
Let the Harris be your banker in
this great city. This is a banker’s
Northwestern Banker, May, 1965

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

Stop in and let us show you some
o f the ways we help our correspond
ent banks build their businesses.

BANK
Organized as N. W. Harris & Co. 1882— Incorporated 1907
Member Federal Reserve S y stem . . . Federal Deposit Insurance Corporation

111! WEST MONROE STREET— CHICAGO. ILL. 00690

plugs Missing on

the Old Chariot?

. v n ('ash'' Finance a newel auto
Short on horsepower A E _
4 a month* ior each
at FIRST NATIONAL I
speaking . . •
thousand dollars borrowed
mefuhanto, it's good at the
if your credit is good wrt*
ow and trade that « « «
FIRST. Pull out of yo
FiRgT nat10N A L BANK.

Folks with 1st National Checking
Accounts arc looked up to!

I iptionuj huxtfers-ilüitk"First
F i r s t N a t i o n a l Sioux City

F ir s t N a tio n a l B a n k
L,„k„Ff<,t„...... .
Sioux City

H R u le s f o r N e w s p a p e r A d s
Sioux City newspaper once a week, on
Thursday. In the spring and fall,
the ads are published on Tuesday and
Thursday of each week in connection
with auto loans.
Mr. Hunt feels strongly that one of
the areas where a bank can advertise
and get something out of it is in in
stallment loans. Consequently, be puts
this extra emphasis on installment
1.
Must be large — five columns x loans, as well as on home improve
1414 inches (enough to dominate news ment loans. He relates:
“This brings in money that pays 4
paper page).
per cent on savings. An active install
2. Hots of white space.
ment loan department can make the
3. Provocative art.
difference between a so-so bank or a
4.
Must tell story with art and head
good income bank. Also, we advertise
line.
for mortgage loans when the market
5. Short copy— 40-60 A v o i d s .
is right.
6. Must have “hooker.”
“Our other kinds of advertisements
7.
Must have uniformity—e.g., mar are mostly institutional, so we try to
gin, logos, size, etc.
be ‘cute,’ clever, and so forth, to leave
8.
Must he refreshing and new for a a good impression with the public.
bank. Can be humorous or cute, but This, we feel, helps to keep business
never “brassy” or coarse.
as well as pick up new business.”
Mr. Hunt usually comes up with the
This rigid format has been followed
closely, producing the desired results ideas for each ad and almost always
of advertisements that have “punch” writes the headline and copy. He
and get results. The ads run in the keeps close liaison with the bank’s

IGHT rules serve as guides for
all newspaper advertising done
by the First National Bank in
Sioux City and these achieve the goal
sought by any business firm—adver
tising with a purpose.
Drawn up by Robert W. Hunt, Jr.,
vice president of First National, who
supervises all of the bank’s advertis
ing, these rules are:

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

advertising agency, Ken James & As
sociates of Omaha. After Mr. Hunt
goes over the ad theme, copy and lay
out with Mr. James, the agency takes
it from there through production.
The ads have been well received by
the public, attested to by satisfactory
gains in business following their pub
lication and by comments received
from many customers.
Mr. Hunt’s principal work is han
dling commercial loans to manufactur
ers and wholesalers. A native Sioux
Cityan, he joined the Bank of Hawaii
in Honolulu following World War II
after serving in the islands during the
war. With a credit department back
ground, he advanced to manager of
one of the bank’s branches before re
turning to Sioux City in 1962 and join
ing the First National Bank.
Although he has had no previous
advertising experience, Mr. Hunt took
over the advertising duties less than
two years ago and devised his own
set of eight rules that now guide First
National Bank’s newspaper advertis
ing.— End.
Northwestern Banker, May, Ì96S

Ringing

theReit for

By
V ice

MARCELLUS M. McMICHAEL, JR.

P r e s i d e n t , l o w a -D e s

M o in e s

N a tio n a l B a n k

and
Iow a
F o u n d a tio n

NE day a number of years
ago an advertising sales
man approached a very
austere and awesome looking in
stitution — a commercial bank
whose policies and methods of
doing business were at least as
conservative as its outward ap
pearance.
After being permitted to “cool
his heels” for an hour or so, the
young man was finally granted
audience with the bank’s cashier,
who tempered his enthusiasm
before delivering him to a brief
interview with the president,
whose final decision on all ex
penditures was part of the abso
lute authority he maintained
over the institution.
Having listened to at least 15
seconds of the adman’s “pitch”—
enough to determine what he
was selling—the president inter
rupted abruptly, “ Sorry, young
man, the only advertising we do
is what’s required by law. We
don’t need to advertise. The
bank’s been in town for 83 years
and everybody knows we’re a
bank and where we are located.”

Ring the Bell

“What is that beautiful old
stone building at the other end
of town I saw when I arrived?
Is it a church?” the young man
queried.
“Why, yes,” said the bank

Northwestern Banker, May, 7965

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

S ta te
fo r

C h a ir m a n

C o m m ercia l

Banks

president, “That’s the First Presbyte at commercial banks for the individual
rian Church. It was built before the and family.
Civil War.”
This is one of the factors which
“ I presume everyone in town knows brought about the creation of the
it’s a church and where it is located,” Foundation for Comercial Banks and
the adman suggested.
its national advertising campaign in
“ Certainly!” replied the banker.
the interest of Full Service Banking
To which the young salesman re —a term devised by the Foundation as
marked, “And they do ring the church having a more descriptive application
bell on Sunday morning, don’t they?” to commercial banks.
The young salesman made a good
The Foundation was established in
point for institutional advertising; but 1958 as the result of a movement
that was many years ago. Most banks spearheaded by a small group of bank
have since learned the value of this ers who were active leaders in the
advertising and are using it to then- public relations committees of the Re
advantage.
serve City Bankers Association and
There is one advertising message, the American Bankers Association.
however, that banking failed to put These men were successful in enlist
across for many years. The public ing the support of other bankers
does not fully understand what bank throughout the country.
ers are selling.
Motivation for this effort, in addi
This may seem odd since everyone tion to the public confusion about
knows that bankers deal in money— commercial bank services, came from
they lend it and they accept it in de three developments:
posits. But there is a tremendous
• Millions of new families had
public confusion as to the exact serv moved up into the middle-income lev
ices banks perform, particularly as els, making them potential users of
compared to non-bank financial insti banking and financial services for the
tutions . . . and this has been borne first time.
out in numerous recent public opinion
• While banks continued to grow
surveys such as the Politz Study for with rising population, employment
the Foundation for Commercial Banks. and family income, other non-bank
financial institutions—such as savings
Public Confusion
and loans—grew at a much faster rate,
These surveys found the public con and commercial banking’s share of the
fused about the difference between market actually declined.
commercial banks, savings and loans,
• The savings and loan industry had
and savings banks, and unaware of been conducting a large-scale national
the broad range of services available advertising program to attract more

Fall

Service

business. This year, for example, they
are spending $3 million on the nation
al advertising campaign.
Thus began a movement to tell their
public what b a n k e rs are selling
through the powerful force of national
advertising.
And soon was born the Seven-Star
emblem of Full Service Banking to be
attached to the enlightening advertis
ing messages regularly scheduled in
leading national magazines and re
peated by banks across the nation in
their local tie-in advertising material.
Taking a line from the young sales
man’s story, the Foundation is, in ef
fect, ringing the bell for Full Service
B an k in g, and in d iv id u a l banks
throughout the United States are echo
ing its tune.
Advertising Program

Full-page advertisements in full col
or tell the “Full Service” story every
month in the pages of Reader’s Digest,
The Saturday Evening Post, Time,
Newsweek and Sports Illustrated.
The ads tell how college educations,
cars, hobbies and vacation homes and
other desirable goals can be achieved
through dealing with Full Service
banks.
The advertising is created by the
Foundation’s a d v e r tis in g a gen cy,
Guild, Bascom & Bonfigli. It appeals
to the individual whose financial situ
ation provides him with discretionary
dollars which he banks in at least
checking and savings accounts. The
object is to promote the idea of doing
all of his banking business in a full
service bank.
The magazines used in the campaign
reach 95 million, or one of two famil
ies in every community throughout
the United States.
The Foundation also assists banks
in identifying with the national pro
gram. Through affiliation with First
Financial Advertising Group of Brook
line, Mass., it makes available tie-in

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

material for individual banks. Mate
rial includes statement enclosures,
lobby posters, outdoor b illb o a rd s,
newspaper ad mats, book matches,
postage meter slugs and similar de
vices—all adapted from the national
magazine ads. These promotional
aids may be obtained, and easily put to
use by local banks in their own busi
ness development programs.
In addition, individual banks are
encouraged to use their own creative
initiative in developing tie-in mate
rials.
Local Efforts

The Foundation has also assisted lo
cal cooperative campaigns by banks
in promoting the full service theme.
Bankers in various parts of the coun
try are taking up the call and organ
izing cooperative campaigns in their
own cities and areas to supplement the
national promotion of Full Service
Banking.
In the fall of 1963, for example, five
banks in Atlanta, Georgia, joined to
gether in a two-year cooperative full
service advertising campaign in that
city. Recently tabulated results of the
Atlanta campaign gave impressive evi
dence of success. In May of last year,
a similar program was started by six
banks in Indianapolis, Indiana, and
others are being contemplated in other
cities throughout the country. The
Kansas Bankers Association also fea
tures the Foundation’s full service ad
vertising materials in its statewide
campaign. M in n esota ban k s are
mounting a similar campaign through
the state association.

enth Federal Reserve District. Mr.
Cummings is also chairman of the
Foundation’s board of trustees.
A major responsibility for the devel
opment of the national advertising
program rests in the Foundation’s 10man Advertising Advisory Group.
This group consists of bank executives
especially selected for their broad ex
perience in bank advertising, market
ing and public relations. It works
closely with the Foundation’s advertis
ing agency in developing the material
for approval by the trustees.
An important function necessary to
the conduct of the national advertis
ing campaign is a nation-wide organi
zation to enlist the financial support
of the banks. Thus, keeping the indi
vidual bank members well informed
of all developments of the Foundation
is a continuing function of the head
quarters and fieldmen.
RINGING THE BELL . . .

(Turn to page 54, please)

Foundation Organization

The Foundation’s over-all program
is coordinated by the 29-member board
of trustees elected by the member
banks. Tilden Cummings, president,
The C on tin en tal Illinois National
Bank and Trust Company of Chicago,
is the trustee representing the sev

Northwestern Banker, May, 1965

é é è

Ir IPIr Ir Ir A Graphic View ai

SEEKING to provide the best in
I Nbanking
services and facilities, to

day’s banks should also take steps
to provide their customers with a
guarantee of sound “successor man
agement,” advise two top officials of
LaSalle National Bank, Chicago.
Harold Meidell and Milton F. Darr,
Jr., La Salle National chairman and
president, respectively, say that “it is
wasteful to spend sizable sums on new
buildings, new equipment and new
services if a bank or business doesn’t
provide continuity of management to
assure the continued availability of
the new services, facilities and equip
ment for a long time into the future.
“And, of course, banks are obligated,
by their unique position of public
trust, to provide this continuity at all
times. They are also obligated to let
their stockholders know that manage
ment succession is provided for.”
Not Difficult

Providing management in depth is
not as difficult a problem as it may
seem, according to the two banking
officials. They say that through con
tinuing study of the problem over a
period of years, La Salle National has
developed a “continuity of manage
ment” program which is now bearing
fruit handsomely.
As a result of its program, given
impetus in 1961 with the development
of a three-color “management con
tinuity chart, LaSalle National now
is well-stocked w ith appropriately
trained younger men, both at the mid
dle management and junior officer lev
el, who are being groomed to move
into key management spots to take
Norihwestern
Banker, May, 1965
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Chicago Bankers Find Planned Succession

the places of top senior executives
who retire or to fill openings resulting
from untimely deaths or other causes.
(See illustration accompanying this
article.)
In some instances, junior officers are
working side by side with senior exec
utives facing retirement in a few
years. In other cases, departments
are being stocked with three or more
executives five to 10 years apart in
age, with each being given special onthe-job training aimed at eventual
management responsibility.
And, in addition to this management-in-depth activity, a large reserve
pool of juniors has been recruited and
is now being given broad management
training and experience so as to be
able to move in many directions as the
need arises.
That the program is working well
is indicated by the fact that of the
LaSalle National executives who have
retired in recent years, all have been
replaced by men already working at
the bank and ready to move up.
Charts Explained

“The secret to knowing where we
stand,” say Mr. Meidell and Mr. Darr,
“lies in an easily-understood manage
ment continuity chart we have devel
oped setting forth the remaining years
until retirement of each of the bank’s
officers. Each officer is represented on
the chart by a white line on one of

three colored graphs, each graph de
picting a particular management lev
el. The graphs not only picture that
portion of each officer’s career remain
ing until retirement, but also show his
remaining tenure in relation to that
of his fellow officers and officers on
the levels above or below him.
“Using such charts, which we have
constantly kept up-to-date since 1961,
we are able to tell at a glance which
of our officers is due to retire and
when, and to locate several possible
replacements. The chart has also
proved very helpful in enabling us to
fill immediate openings resulting from
untimely deaths or other causes. It
permits us to tell at a glance where
we are strong or weak, where we
have to do some shuffling and re-train
ing, and when we need to bring in
additional young blood as general
management or departmental trainees.
“ Charting ahead eliminates the pos
sibility of a temporary void during
the search for a new man to replace
a key executive whose retirement sud
denly has come up without a successor
having been chosen.”
Additional Advantages

A sound “successor-management”
program has important advantages
other than solving the problem of of
ficer retirees, according to the sys
tem’s users.
They report other advantages of La-

Management Continuity

Offers Advantages

Salle National’s “management-continu
ity” program include the following
near the top of the list:
1. It indicates that the bank’s man
agement is constantly being revital
ized with young blood, with its ac
companying infusion of new ideas and
new energy.
2. It assures the bank’s sharehold
ers that steps have been taken to pro
tect their investment over the long
term and that these steps can be ex
pected to yield even bigger dividends
in the future.
3. It provides correspondent banks
with an incentive—as well as a model
to emulate—in developing their own
successor management programs.
4. It promotes loyalty and reduces
turnover among management people
and serves as an incentive for them
to work harder in the knowledge that
their career has already been charted
in the bank’s long-range management
advancement program and that the
bank’s policy is to promote from with
in.
“Any one of these advantages con
stitutes reason enough for a bank or
business to consider developing a
sound management program,” accord
ing to Mr. Meidell and Mr. Darr. “But,
put them all together and it is obvi
ous that such a program is a ‘must’
for any business which wants to as
sure its growth and longevity in to
day’s fast-changing and highly-competitive business world.”—End.

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

A M A N A G E M E N T C O NTIN U ITY, for the upcoming 30 years, is graphically repre
sented in the La Salle National Bank’s three charts. Top chart represents officers in
positions of vice president and higher. The middle chart encompasses officers at the
assistant vice president level and the bottom chart represents officers at the assistant
cashier level. Each officer is represented by a horizontal white line.

Northwestern Banker, May, T965

N E W OFFICERS of the IB A — Ralph L. Zaun (second from le ft), new IB A pres., re
ceives congratulations from Immediate Past President L. M. Stenehjem. Mr. Zaun is
exec. v.p. of Grafton State Bank, Grafton, W is., and Mr. Stenehjem is pres, of First
International Bank, W atford City, N.D. A t right is IB A ’s new 1st v.p., Pat DuBois,
pres, of First State Bank, Sauk Centre, Minn. At left is IB A ’s new 2nd v.p., Stanley
Barber, pres., Wellman Savings Bank, Wellman, la . New treas. of IB A (not shown)
is W . L. Webber, sr. v.p., Security National of Kansas City, Kans.

At 31st Annual Convention

i n v n d v n / R a n k e rs
ilr g e 9 "R e m o v e S a x o n "

Mr. Zaun, 44, has been a key figure
in the IBA’s aggressive campaign for
tax equality among financial institu
tions. He has been with the Grafton
bank since 1944, starting there after
his return from World War II. He
served for four years in the Wisconsin
legislature.
Mr. Zaun was chairman of the IBA’s
committee on Savings and Loan Asso
ciations for three years, was a mem
ber of the executive council of the
Wisconsin Bankers Association for
three years, and was chairman of the
research committee of the WBA for
four years.
Mr. DuBois served as chairman of
the IBA’s agriculture committee and
is a member of the Minnesota state
legislature.
Mr. Barber has served on several
committees of The Independent Bank
ers Association, including the legis
lative committee, and the committee
on competing financial institutions,
the taxation committee and the com
mittee on Savings and Loan Asso
ciations.
He is chairman of the Agricultural
Credit School committee of the Iowa
Bankers Association and is a former
member of the insurance, legislative
and other Iowa BA committees.
Other Resolutions

EMOVAL of Comptroller of the
Currency James J. Saxon by
President Johnson, was urged
in a resolution adopted at the 31st an
nual convention of The Independent
Bankers Association, April 8-10, at
the Diplomat Hotel, Holly wood-By-theSea, Fla.
The 1,300 participants, mostly from
small communities in 41 states, also
called for a Constitutional amend
ment which would put reapportion
ment of state legislatures to a refer
endum in each state.
The IBA charged that Mr. Saxon’s
policies appear to foster a central
banking system which would destroy
dual banking and said that he has
shown “outright contempt for state
banking laws.” The resolution said
Mr. Saxon has repeatedly endorsed
:branch banking and other forms of
multiple banking which have “created
uncertainty and unrest among bank
supervisory agencies.”
The reapportionment resolution re
quests Congress to consider a Con
stitutional amendment for approval
by the various state legislatures
which would authorize any state to
apportion membership of one house
o f a bicameral legislature without
population restrictions. The effect of
this would be to overrule recent Su

Northwestern
Banker, May, 1965
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

preme Court directives to apportion
state legislatures on a strict popula
tion basis.
Next year the IBA will meet at the
Dunes Hotel in Las Vegas, Nev.,
April 26-28, 1966.
New Officers

Ralph L. Zaun of Grafton, Wis., suc
ceeded L. M. Stenehjem of Watford
City, N. D., as president of the IBA,
which has a membership of 6,300
banks. Mr. Zaun, executive vice presi
dent of the Grafton State Bank, Graf
ton, Wis., was advanced from first
vice president of the association. Mr.
Stenehjem is president of the First
International Bank of Watford City.
Moving up to first vice president
was Pat DuBois, president of the
First State Bank of Sauk Centre,
Minn., and son of Ben DuBois, one
of three surviving founders of The
Independent Bankers Association and
its executive director for 30 years.
Stanley Barber, president of the
Wellman (Iowa) Savings Bank, was
elected second vice president. The
new treasurer is W. L. Webber, senior
vice president of the Security Nation
al Bank of Kansas City, Kan., and the
IBA’s Kansas director. He succeeds
Miss Martha Guy, cashier of the
Avery County Bank, Newland, N. C.,
treasurer for the past two years.

In other resolutions adopted at the
convention the IBA:
• Opposed any legislation that would
exempt banking mergers from provi
sions of existing antitrust statutes.
The resolution was prompted by a
bill now before Congress that would,
in effect, give a blank check to bank
merger negotiation and agreement
without regard to the lessening of
competitive factors. The resolution
said the Department of Justice appli
cation of antitrust statutes “has pro
vided a most effective check against
bank mergers that result in lessened
competition in communities served.”
• Rejected any legislation that would
tend toward weakening of the nation’s
dual banking system. The resolution
opposed recommendations by Federal
Reserve Board officials to establish a
uniform reserve system to be applied
to all banks, including those that are
not members of the Federal Reserve
System.
• Condemned mobile banking, which
is contrary to a 1957 agreement among
the FDIC, the Federal Reserve Board
and the Comptroller to prohibit mo
bile banking. The resolution specific
ally opposed the present Comptroller’s
authorization of a permanent inter
mediate mobile banking service in
INDEPENDENT BANKERS . . .

(Turn to page 122, please)

SO M ETHING FOR TH E LA D IE S was an important part of the
IB A convention. Mrs. L. M. Stenehjem (left) of Watford City,
N. D., wife of the IB A immediate past president, was mistress
of ceremonies during the Women’s Luncheon and Style Revue.
One table group (right) included, clockwise, from le ft: Mrs,
E. W . Maser, LeMars, Iowa; Mrs. R. C. Taylor, Sioux City,

Iowa; Mrs. R. W . Habberstad, Iroquois, South Dakota; Mrs. R.
J. Lannon, Saunemin, Illinois; Mrs. Dean Selmeyer, Pontiac
Illinois; Mrs. Karl M. Baily, Carmichaels, Pennsylvania; Mrs.
J. W . Bingham, Sharon, Pennsylvania; Mrs. Boyd Hopkins,
Artesian, South Dakota, and Mrs. P. J. Juffer, Ireton, Iowa.

M EM BERS OF IB A legislative committee, pictured at the con
vention, from left: Stanley Barber, pres., Wellman Savings,
Wellman, la .; J. Ross Humphreys, chmn. of Central Natl., Chi
cago; Chairman T. H. Milner, Jr., pres., Natl. Bank of Athens,
Ga.; Gail H. Hernett, v.p., Grant County State, Carson, N. D.,

and Harold L. Hanson, pres., 1st Natl., Baudette, Minn. RIGHT
— Happy winner of American Express expense-paid trip to Ber
muda was O. D. Hansen (right), pres., Bank of Union County,
Elk Point, S. D. Making presentation was Erskine Girard (left),
a.v.p. of American Express.

LEFT— IB A ag committee and guests. Seated, from le ft: H.
L. Gerhart, Jr., v.p. & cash., 1st Natl., Newman Grove, Nebr.;
Carl Wilken, dir. of research for Foundation for Economic Sta
bility, Washington, D .C.; E. E. Manuel, pres., George State,
George, la .; Frank Spring, pres., Friona State, Friona, Tex.;
O. K . Anderson, pres., State Bank of Dakota, N. D., and Harry
E. Rash, pres., 1st State, Thayer, Kans. Standing, from left:
Tom Duffy, senior credit analyst, Allied Chemical Corp.; Steve
Garst, v.p., Iowa Sav., Coon Rapids, la .; D. Wayne Meyer, v.p.,

Peoples State, De Smet, S. D .; Chairman Russell Hanson, v.p.,
Swift County Bank, Benson, Minn.; Bill McDonald, editor of
IB A magazine and secy, of ag comm., and Frank Buchanan,
cash., Clarks Fork Natl., Clarks Fork, Mont., a guest of the
group. RIGHT— Poolside chat is enjoyed by three Iowa bank
ers, from le ft: H. W . Janssen, exec, v.p., Farmers State, Dows;
James E. Coonley, chm., and Robert F. Schaefer, pres., both
with Sheffield Savings.

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Federal Reserve Bank of St. Louis

Northwestern Banker, May, J96S

A complacent attitude toward installment lending risks can be
extremely costly , according to this representative of a firm
which specializes in insurance counseling for banks. His com
ments are taken from an address made recently before the
meeting of the Installment Bankers Association, Chicago area.

J. R. MORRAN

A ccou n t

E x e c u tiv e

S carborou gh

C om pany

C h ic a g o , I llin o is

illu s io n s in In s tu lh n o n t L o n t lin ij
HE principal illusions in install
ment lending are: (1) that it is
easy to make a profit; (2) that
it is easy to run a sound department;
(3) that, in automobile financing, there
is such good collateral that the usual
careful screening procedures can be
relaxed; (4) that the lending contracts
are adequate evidence of existing
loans; and (5) that a large loss in in
stallment lending operations cannot
happen in a particular bank.
The fact is that an automobile loan
will often prove considerably larger
than the “book” value of the automo
bile for several months until the two
values coincide. Further, when you
have a poor credit risk in the first
place, he is likely to maltreat the
automobile so that, upon repossession,
it will be found to have a market
value considerably smaller than the
“book” lists.
The profits of an entire year or more
may be an illusion, indeed, if a bank
discovers that many of its existing
contracts are fictitious, double-financed
or uncollectible because of unsound
lending practices.

Several Schemes

In one Chicago bank, a teller who
received payments on consumer loans
withheld the payments and persuaded
the bookkeepers who posted the loan
cards to make “correcting entries”—
which were really postings of actual
payments withheld. The loss over a
ten-year period amounted to $129,000.
In this case, controls were in effect
but were effectively circumvented.
In another case, a Chicago bank ran
up a loss of almost $400,000 in dishon
est and “bad” loans in a period of
several months. Here, operating safe
Northwestern Banker, May, 1965

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Federal Reserve Bank of St. Louis

guards were also non-existent. The
department manager was permitted to
work long hours of overtime, with no
other persons in the bank. Large
amounts of cash were left out of the
vault at night for his convenience.
Working in collusion with a dishonest
dealer, this man created fictitious con
tracts and discounted the same con
tracts several times. There were even
unauthorized loans made to the dealer
himself on non-existent automobiles.
Control procedures were totally inade
quate, as evidenced by the fact that
there were no credit reports and no
collateral when the loans were made,
that the directors were never notified
that up to $80,000 of cash was kept
outside the vault at night for the con
venience of the installment loan man
ager, that many coupon books were
simply retained in the file and that
the same handwriting appeared on
many contracts.
In a country bank a few weeks ago,
a dealer purchased a cashier’s check
for $769 in exchange for his personal
check, which bounced. When it
bounced a second time, the dealer per
suaded the bank’s cashier to cover up
by placing the check in the transit
account. Once booked, the cashier
ended up with a large block of such
NSF checks in his transit account un
til discovered.
Dishonest Dealers

Scarborough & Company recently
paid a loss of over $44,000 in an out of
state bank where the total loss created
by a dishonest dealer in collusion with
an employee of the Credit Bureau
created a loss of $250,000 shared by
several financial institutions. In this
case, the Credit Bureau employee

would certify good credit for non-ex
istent persons, an automobile junk
dealer would procure “certificates of
title” on dismantled wrecks, which the
automobile dealer then used as collat
eral for loans. The auto dealer ar
ranged for coupon books to be picked
up by one of his employees from room
ing houses, trailer parks and even a
fictitious mail drop created for the
purpose in a parking lot and arranged
for employees to make some payments
by purchasing money orders at vari
ous banks and mailing them from dif
ferent sections of the city.
In another case, which ran up to
$50,000, two bank employees conspired
with an auto dealer to create forged
conditional sales contracts, sending
the letters and payment books to the
dealer rather than to persons named
as purchasers.
Collusion between an installment
loan manager and a home improve
ments dealer ran up a total loss over
$700,000, of which $300,000 was ab
sorbed by one of the customer banks.
In this case, the manager cleared
loans which he knew were padded or
phony and received kickbacks of $125
per week. He got so used to the extra
money that he was prey to approve
a large unsecured loan to the dealer.
Meanwhile, the dealer was also run
ning a fine check kiting operation, and
it was only when one of his covering
checks did not clear fast enough that
this house of cards crumbled.
Premium Financing

A growing new area in installment
lending is insurance premium financILLUSIONS . . .

(Turn to page 62, please)

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Federal Reserve Bank of St. Louis

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Northwestern Banker, May, 1965

IStuiliers You K n ow

F d II.

Spi>tiM• J r .

P r e sid e n t

Council Bluffs Savings Bank
Council Bluffs, Iowa

. .

a th o r o u g h u n d ersta n d in g
all p h a s e s o f h a n k in g . .

Again resuming his active banking career, Mr. Spetman
served in virtually every position in the bank on his way
to the presidency of the institution.
Diversified Background

ITH the rapid-fire changes caused by the nation’s
fast-growing economy, the most important and
pressing problem facing today’s bankers is that
of the extension of sound credit.
That is the opinion voiced by Ed H. Spetman, Jr., 42year-old president of the Council Bluffs Savings Bank,
Council Bluffs, Iowa. And he speaks from broad expe
rience in his field.

Family Bankers

Mr. Spetman’s uncle, Theodore Laskowski, was the
fourth president of the 109-year-old Council Bluffs Savings
Bank. He headed the institution from 1916 to 1923.
Ed’s banking background was further enhanced by the
fact that his father was, for 47 years, vice president of
the Council Bluffs Savings Bank. The elder Mr. Spet
man retired from the bank in June, 1961.
Young Mr. Spetman’s active banking career commenced
in 1939 when he joined the bank as a bookkeeper, a post
which he held until the fall of 1940 when he matriculated
at Iowa State College—now Iowa State University, Ames,
Iowa.
The future bank president’s college career was cut
short, however, by the advent of World War II.
Wartime Interruption

In 1941, he left school to enlist in the Army Air Corps.
An engineer gunner, he was stationed in Italy during the
conflict. He saw considerable action and, as a result,
was awarded the Purple Heart and the Air Medal with
four oak leaf clusters.
Following the war, he resumed his education and was
eventually graduated from the University of Wisconsin
School of Banking. He subsequently was also graduated
from the Harvard School of Banking.
Northwestern Banker, May, 1965

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Federal Reserve Bank of St. Louis

In addition to serving as a bookkeeper, he was a mes
senger, teller, assistant cashier, cashier, vice president
and executive vice president prior to his election as presi
dent.
“With this background of qualifications,” says one bank
executive, “he has a thorough understanding of all phases
of banking.”
Despite his banking responsibilities, Mr. Spetman has
not neglected his community. He has always given his
time and energy to making his community a better place
through planning, foresight and perseverance.
Among his community activities are the following:
• Past president and director of the Council Bluffs
Chamber of Commerce.
• Past president and director of the Sertoma Club.
• Member of Young Presidents Club.
• Ambassador of Ak-Sar-Ben.
• Member of board of directors of Jennie Edmundson
Memorial Hospital.
• Past director of Red Cross.
• Past director of Salvation Army.
• Present member of executive board of Pottawattamie
County Health Association.
Engrossing Pasttime

One of Mr. Spetman’s diversifications is golf. Another
is horses.
The most engrossing, however, is an 80-acre combina
tion farm and ranch on the outskirts of Council Bluffs
where he and his wife, Glenna, and four children live.
The Spetman children are: Carol Sue, 19; Bob, 15; Randy,
12, and Tom, 11. Mr. and Mrs. Spetman will celebrate
their 20th wedding anniversary next month.
The farm-ranch is a modern one with many new build
ings which Mr. Spetman has built himself. He also owns
approximately 20 head of Hereford and Angus Cattle, a
project in which the entire family takes an interest.—
End.

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Northwestern Banker, May, 1965

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Federal Reserve Bank of St. Louis

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A M E R I C A

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know business and building conditions
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i f H t.5 A d t t a d g e t s L a r g e r
analyses of bank advertising
T HE
have been reported on in recent
weeks, based on 1964 expenditures
and surveys of 1965 plans. They are
annual studies made by the Financial
Public Relations Association and the
American Bankers Association.
FJPR A

spending on advertising dur
BANK
ing 1964 moved over the marks

H . N . A r n o ld

T o m C a h ill

J a m ie G. C a n n o n

J . T . C o n lo n

H a r o ld G ilb e r t

yy
w
C. J. G u im b a r d a

A n a ig s is

I
‘E

J o h n T. H u ffm a n

set in the previous year, the sharpest
in c re a s e s being noted among the
smallest banks. And the 1965 outlook
was for even higher spending, with
the largest budget boosts expected by
the larger institutions.
These findings are reported in the
“Analysis of 1964 Bank Advertising
Expenditures” just published by Fi
nancial Public Relations Association.
The Analysis reports on how banks
use one of their major marketing
tools—advertising—with statistics on
services promotion and distribution to
various media divided into 17 cate
gories according to bank size. The
annual study is helpful to advertising
managers seeking to compare their
efforts with those of other banks of
similar size and circumstance.
This year’s report is based on a
survey of 914 institutions of different
sizes and different locations through
out the U. S., the largest sample to
be measured in an FPRA annual
study.
Advertising spending for banks un
der $5 million in deposits was up 24
per cent compared to 1963. At the far
end of the size scale, banks in the
over $1 billion group reported very
little change from 1963 outlays.
Plans for 1965 somewhat reversed

N o rm a n Leppo

the picture, however. The over $1
billion banks were almost unanimous
(80 per cent) in predicting increases
ranging from 3 to 20 per cent for
1965. Banks in the “larger” cate
gory also looked for more spending.
The $350-$500 million banks which
had reported a cutback of 11 per cent
from 1963 spending, projected in
creases of about 10 per cent for 1965.
In the $500 million to $1 billion cate
gory, a decrease of 18 per cent in ad
vertising spending during 1964 was
expected to be followed by increases
for 1965 among most banks reporting.
The smaller institutions, however,
looked more conservatively at 1965.
Generally speaking, the majority of
banks below $40 million in deposits
planned to hold the 1964 high line.
Newspapers remained at the top of
the most-used media list and there
was little shifting of emphasis among
media. Institutions which had used
television in previous years gave it a
vote of confidence by leaning toward
increased spending in the medium.
The use of advertising agencies con
tinues to increase. Almost all (92 per
cent) of the banks over $50 million in
deposits use outside help. About 70
per cent of banks under $25 million
deposits reported no use of agencies.
Above the $25 million mark, the ta
bles turned in favor of agency use.
There was continued emphasis on
promoting installment loans to offset
higher interest costs on savings. In
stitutional advertising was also high
on expenditure lists in all bank-size
ca te g o rie s , possibly serving as a
“catch-all” category in some cases, for
the report notes that 29 per cent of
the banks reporting gave no break
down of spending by service. Another

C o m p a ra b le Total A v e r a g e Advertising Expenditures - All G r o u p s
1961 - 1 9 6 2 - 1 9 6 3 - 1 9 6 4
A V E R A G E T O TA L A D V E R T IS IN G EXP E N D ITU R ES

B A N K S R EP O R T IN G
G ro u p

Deposits

1 to

4 . 9 m il lio n

1961

1962

1963

1964

1961

1962

1963

$ 4 ,1 0 0

$ 3 ,8 0 0

$ 5 ,5 2 3

1964

6 ,8 5 5

5 to

9 . 9 m il lio n

133

150

129

120

8 ,3 0 0

8 ,4 0 0

9 ,7 6 6

9 ,5 3 5

1 0 to

1 9 . 9 m il lio n

182

235

195

220

1 4 ,6 0 0

1 5 ,3 0 0

1 5 ,4 5 4

1 6 ,0 1 2

2 0 to

4 9 . 9 m il lio n

193

224

205

234

2 7 ,6 0 0

3 0 ,1 0 0

2 8 ,7 8 4

3 1 ,2 8 2

5 0 to

9 9 . 9 m il lio n

100

103

113

6 0 ,1 0 0

5 6 ,4 0 0

5 6 ,7 6 8

6 0 ,6 1 3

1 0 0 to 1 4 9 . 9 m i l l i o n

8 8 ,0 0 0

9 1 ,0 0 0

9 5 ,9 4 9

9 7 ,8 4 4

sizes are shown. Free, no obligation. Just

V II

1 5 0 to 2 9 9 . 9 m il lio n

1 4 8 ,4 0 0

1 5 2 ,4 0 0

1 4 3 ,0 8 2

1 6 0 ,0 1 2

write to:

V ili

3 0 0 t o 4 9 9 . 9 m il lio n

2 1 1 ,2 0 0

2 0 6 ,3 0 0

2 3 5 ,4 1 7

2 2 0 ,9 4 1

5 0 0 m illio n a n d o v e r

4 8 3 ,1 0 0

5 7 9 ,1 0 0

7 4 5 ,8 3 9

7 7 9 ,4 7 0

796

948

867

914

R o b e r t D . M o r r is o n

F re d A . H a r t

B a n k R elatio ns

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1130 Hampton Ave., St. Louis, Mo. 63139
Offices in: A T L A N T A • C H I C A G O • D A L L A S
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TO TAL

Northwestern Banker, May, 1965 1

46
possible source of distortion is the
appearance of such non-recurring
costs (grand openings, significant an
niversaries, etc.) which result in “bor
rowing” from ordinary budget distri
butions both for media and services
featured.
Copies of the 24-page report have
already been sent to FPRA members.
Non-members may order copies ($2)
from FPRA, 120 W. Madison Street,
Chicago, 111. 60602.

A H A S tu fitf
advertising budgets for
T OTAL
commercial banks of the United

States during 1965 will be $228 mil

lion, according to an annual survey
made by the advertising department
of The American Bankers Association.
This is a $24 million increase over
1964 and marks the 15th consecutive
year that commercial bank advertis
ing budgets have increased.
According to the bank survey re
sponses, newspapers remain by far
the first media choice followed by cal
endars, direct mail, radio, specialties,
window and lobby posters, billboards,
television, and other forms of adver
tising. The banks were asked which
services would receive first, second
and third emphasis in their 1965 ad
vertising, and the replies show that
auto loans, regular checking accounts,

savings, and full-service banking were
most often chosen. Other services to
be advertised include personal, mort
gage and farm production loans, bank
by mail, drive-in banking, special
checking accounts, home repairs, busi
ness loans, safe deposit, trust services,
and others.
In view of the growing interest
among banks in television advertising,
the banks were asked which form
their commercial announcements take.
Thirty per cent of the institutions use
live shows, 34 per cent use film, 30
per cent use slides and 4 per cent use
taped announcements. The time slots
reported were station break, 50 per
cent; in-program, 44 per cent, and
spot announcements, 6 per cent.
Forty-five per cent of the participat
ing banks use one minute announce
ments, while a varying percentage use
other lengths of television time.
The current 1965 advertising survey
shows that the dollar volume of bank
advertising has increased more than
10 times compared to what it was in
1946 when the A.B.A. survey was first
initiated. The 1965 study brought re
plies from 39.65 per cent of the 13,316
c o m m e rcia l bank s receiving the
A.B.A. questionnaire.
This is the
highest percentage of response for
these A.B.A. studies and shows the
increased percentage among banks in
advertising and marketing of banking
services.

Gets Missouri U. Award

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re ce ip t. In ste a d we o ff e r you th e s a fe ty o f v is ual v e r if ic a t i o n on a m o n t h
ly ba sis — or m o re f r e q u e n t l y , if th e a c t i v i t y or c o m m o d i t y in d ic a te s . For
y o u r f u l l e s t p r o te c tio n , we d o n ’t ta k e a n y b o d y ’s word f o r a n y th in g .
Years of q u a l i t y servic e pro ve th e u n iq u e r e l i a b i l i t y of Dou g la s-G u a rd ia n .
Call th e D oug la s-G u a rd ia n o ff ic e in y o u r own c i t y — or t h e h o m e office,
f o r c o m p l e t e an d p r o m p t in f o r m a t io n .

“ OUR

IN T E G R IT Y

YOUR

S E C U R IT Y

”

D0UGLAS-GUAROIAN WAREHOUSE CORPORATION
P.O. Box 52978, New Orleans 50, La., O ffices in 15 P rincipal Cities, Code 504 523-5353

Banker, May, 1965
Northwestern
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Harold S. Hook, C.L.U., president of
National Fidelity Life Insurance Com
pany, Kansas City, was awarded the
University of Missouri Alumni Cita
tion of Merit for
outstanding
a ch ie v e m e n t in
the b u s i n e s s
world. The pres
e n ta tio n of the
award, the high
est h o n o r t h e
school can bestow
upon its gradu
ates, was made
at the a n n u a l
H. S. H O O K
honors luncheon
which climaxed the Business and Pub
lic Administration Week. Recognition
was also given to outstanding under
graduates of the school.
Mr. Hook received his Bachelor of
Science degree in Business Adminis
tration in 1953, and his Master of Arts
degree in accounting in 1954. He
joined NFL in 1957 and was named
president in January, 1963, at the age
of 31, and was one of the youngest
men to hold the office of president of
a major life insurance company.

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Building with Chicago and the nation since 1863

T h e F ir s t N a t io n a l B a n k o f C h ic a g o

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

Chicago, Illinois • 60690
M EM BER FE D E R A L DEPO SIT IN SU RAN C E CORPORATION

North western Banker, May, 1965

Blyth & Company Gets
t,6Big Board” Membership
Blyth & Company, Inc., underwrit
ers and distributors of investment se
curities nationwide, became a mem
ber corporation on April 8 of the
New York Stock Exchange. Member
ship in the “Big Board” was acquired
just 10 days prior to the date on which
the firm observed its 51st anniversary,
April 18.
Paul Devlin, executive vice presi
dent and director, and a veteran of
40 years’ experience in the securities
bu sin ess, holds Blyth’s Exchange
membership. Mr. Devlin is also head
of the firm’s national trading division,
which for years has been recognized
as one of the most extensive in the
country.
Membership in the Exchange will
be in the best interests of its custom
ers and the firm, a spokesman for
Blyth stated. The firm for many
years has generated a substantial vol
ume of brokerage business in listed
securities.
Blyth will conduct its Exchange
business through the present organi
zation without adding offices or per
sonnel. The firm does not expect to
revise its present policies of not ex
tending credit through margin ac
counts or offering customers custo
dian service for their securities.
Founded in San Francisco on April
18, 1914, Blyth is today one of the
major underwriters of corporate, mu
nicipal and government securities.
The firm does a large day-to-day busi
ness in all types of corporate and
municipal securities and since 1962
has been a dealer in bonds of the
United States Government and its in
strumentalities. Blyth currently main
tains offices in 31 financial centers
across the country.

G ood In v estm e n t
By protecting banks and their depositors for over 94 years, La Monte Safety
Paper has earned a nationwide reputation as the best investment to prevent
fraudulent alteration and counterfeiting of checks. To meet today’s high speed
banking operations, check paper must mot only be safe but sortable. La
Monte’s continuing research to provide the finest in safety, sortability and
appearance is a major reason why the majority of banks and check printers
still consider La Monte the finest investment they can make in safety paper.

S a fe ty P a p e r f o r C h e e k s
THE WAVY

G E O R G E
G E O R G E

LA
LA

M O N T E
M O N T E

S O N

Northwestern Banker, May, 1965

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

S O N

•

L IN E S ® ARE A LA

N U T L E Y.
L TD .

•

T O R O N T O ,

MONTE TR A D E -M A R K

B U R L I N G T O N ,
O N T A R I O

I OWA

C A N A D A

Charles Scanlon Receives
Good Scout Award
Charles J. Scanlon, president of the
Federal Reserve Bank of Chicago, re
ceived the Good Scout Award at the
first annual Securities, Finance, and
Insurance Lunch-o-ree, held April 27
at the Conrad Hilton Hotel in Chi
cago.
The luncheon was sponsored by the
city’s financial community, and was
expected to raise $15,000 toward the
Chicago Area Boy Scout Council’s
1965 fund-raising campaign.
Presentation of the Good Scout
Award was a major feature of the
program. The honor is conferred an
nually on a community leader who
makes the spirit of Scouting a part of
his daily life, and for his services to
youth above and beyond the norm.

Five Men Promoted
Charles E. Colchin was elected as
sistant vice president and four junior
staff members were named assistant
cashiers at National Boulevard Bank,
C h icago, Irving
Seaman, Jr., pres
ident, announced
recently.
Mr. Colchin, an
assistant trust of
ficer, joined the
bank in 1958 as
an investment an
alyst.
Promoted to as
sistant c a sh ie r s
c. E. C O L C H I N
were Brendan S.
Heintz, Joseph P. Kerr, Ellis D. Rob
inson, Jr., and Bruce M. Slagg.
Mr. Heintz is presently assigned to
the installment loan department. Mr.
Kerr is working in the real estate de
partment at the bank. Mr. Robinson
was named a pro cashier in 1964 and
is assigned to the new account area.
Mr. Slagg is working in business de
velopment.

Named Operations Manager
Appointment of Harold “Bob” Wintermute as operations manager of
American Sign and Indicator Corpora
tion, Spokane, Wash., was announced
recently by William Justus, vice pres
ident of operations.

New Mortgage Policy
Protects Bank’ s Interest
A special type of errors and omis
sions coverage developed by Great
American Insurance Company, New
York, protects banks and other mort
gage lending institutions to the ex
tent of their mortgagee interest for
“loss to mortgaged real property from
the perils of fire, lightning and ex
tended coverage, when such perils are
uninsured because of an error or
omission on the part of the mortga
gor.”
The new policy has the official ap
proval of the Federal Home Loan
Bank Board for savings and loan as
sociations, and has also been approved
by the Controller of the Currency for
use by national banks and the Veter
ans Administration.
According to Roger D. Billings, vice
president of Great American, “We
have been one of the chief marketers
of this revolutionary new coverage in
Canada for the past three years. Our
Canadian experience has convinced us
that the Mortgage Protector Policy
provides a unique and exceptionally
useful service to lending institutions
by allowing them, in many cases, to
reduce their expensive mortgage in
surance operations.”

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Federal Reserve Bank of St. Louis

T h e f in e s t c o in w r a p p e r a v a ila b le f o r a u t o m a tic
coin c o u n tin g a n d p a c k a g i n g . U n iq u e c o n s tr u c tio n
e lim in a te s c logging o f c o in s — p r o v id e s tig h tly c r im p e d
ends. E n d s tu rn e d o n e w a y. M a d e o f
h ig h e s t quality, e x t r a s tro n g s to c k to a s s u r e
t h e u tm o s t in p r o t e c t i o n a n d r e l i a b i l i t y .
S t a n d a r d c o lo r f o r e a c h d e n o m i n a t i o n .

SYMMETRICALLY PACKED 1000 TO A CARTON
S p e c i f y “ S t e e l - S t r o n g ” G u n s h e lls a nd be
a s s u r e d o f high s p e ed , e ff ic ie n t o p e ra tio n .
SEE YOUR D E A L E R

OR S E N D F O R F R E E S A M P L E S

THE C. L. D O W N EY CO M P A N Y , HANNIBAL, M ISSO URI, DEPT. N
Northwestern Banker, May, J965

MORE T H A N 200 top management officials of various banks
and other industries from around the nation were included in
the large crowd pictured above at one of the open house events
as Commerce Trust Company officials dedicated the new Com
merce Tower. This ceremony was conducted on the plaza area

C om m erce T ru st is
R e s e r v e I it ft H auliers
than 200 top management
MORE
officials of the nation’s largest

in front of Commerce Tower. In other photo, James M. Kem
per, Jr., (le ft), chairman of the board and president of Com
merce Trust, visits with two guests, Louis B. Lundborg (center),
chairman of the board, Bank of America, Los Angeles, and
L. A. Stoner, president, Ohio National Bank, Columbus.

and retail organizations were in Kan
sas City last month to attend the for
mal dedication ceremonies of Com
merce Trust Company’s new skyscrap-

banks, finance companies, railroads,
airlines and manufacturing, service

CONSECUTIVE E-13B NUMBERING
As far as we know, there are rela
tively few banks presently using
checks consecutively numbered in
E-13B to any extent in their auto
mation programs. The utilization
o f MICR encoding in the three
regular fields (Transit Number, On
Us and Amount) has proceeded
very satisfactorily. Many bankers,
therefore, are now thinking and
talking about some o f the new
services that could be provided,
and the new methods o f handling
that could be used, if all their
checks were consecutively num
bered in E-13B as well as the
conventional numbering in the
upper right position.
On large-sized checks this number
ing appears in the Auxiliary On Us
Field to the left of the Transit Field.
On the small-sized checks it must
appear in the On Us Field because
of space limitations. The number
is usually restricted to four digits
on the small checks. We are pleased

to be able to report that we are now
numbering checks in E-13B in
both fields for several banks and
that we are in position to extend
this service to any bank that desires
it. All o f our catalog check forms,
as well as special corporation or
bank checks, can be ordered with
this numbering at slight extra cost.
E-13B consecutive numbering is
being used for business account
reconcilement, consecutive number
print-outs on bank statements, and
for reconcilement o f Bank Money
Order and Cashier’s Check ac
counts. Other uses are stop pay
ment and certified check identifi
cation.
Our representatives have MICR
layout sheets showing the recom
mended position and manner of
printing these numbers in accord
ance with ABA specifications. They
will be happy to discuss this phase
of your program with you.

D E L U X E CH ECK P R IN TE R S INC.
NORWALK

CLIFTON PAOLI

TUCHMOND SYRACUSE

CLEVELAND

DETROIT

INDIANAPOLIS

CHICAGO KANSAS CITY ST. LOUIS S T PAUL DALLAS CHATSWORTH SANTA CLARA PORTLAND

Northwestern Banker, M ay, 1965

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

er, Commerce Tower, Kansas City.
The event coincided with the bank’s
100th anniversary of banking service
to the middlewest.
The guest list of prominent bank
ers was made up of members of the
Reserve City Bankers Association.
Following tours of Commerce Tower,
the guests were treated to cocktails
in the Garden Gallery of the building
prior to dinner at the Top of the
Tower, the new international res
taurant on the skyscraper’s 30th floor.
The formal dedication itself took
place the following morning with
James M. Kemper, Jr., chairman and
president of the bank, presiding. The
bank entertained the group at lunch
eon at the Kansas City Club prior to
a chartered jet flight to Florida where
a majority of the guests were headed
for the annual meeting of the Reserve
City Bankers in Boca Raton.
The dedication party capped nearly
eight weeks of grand opening activi
ties in connection with the bank’s
centennial anniversary and comple
tion of Commerce Tower.

Promoted at Burroughs
Three major promotions in Bur
roughs Corporation’s finance activity
have been announced by Harry G.
Bowles, vice presdent, finance.
William J. Collins, who has been
controller, international division, since
1955, has been appointed assistant con
troller for the corporation and control
ler of the newly-established interna
tional and Canadian group.
Larry L. Pflieger, assistant treasur
er for Burroughs since 1963, has been
named assistant controller in charge
of corporation financial analysis and
budgets.
Thomas E. Garvale has been ap
pointed assistant treasurer. Since
1962 he has been assistant controller,
international division.

“The room” at 20 Pine Street, New York. Here, hundreds of millions of dollars are handled daily.

SHORT TERM MONEY “HOT LINE
The up-to-the-minute intelligence system set up by one bank to serve business.

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Corporations, correspondent banks, and other institutions
may now learn what investments would be available to them
for 30, 60, 90 days or more. Just by calling (212) 770-2568.
This is Chemical New York’s Short-Term Investment De
partment: “The room.” Here we have assembled a select group
of men with specialized knowledge in short-term investing.
Equipped with a complete complex of facilities and informa
tion, they can offer you instant insight into the best rate for
every type of short-term investment.
This intelligence system reaches out to all major govern

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

ment and private borrowers and investors. It brings rates and
availabilities together into one up-to-the-minute data center.
We can then proceed with purchases and payments and, at
maturity, with the complete collection procedure.
To learn more about this valuable service, simply talk to
the trained financial consultant who serves your area, “the
New York banker with the hometown touch.” He, like the
service itself, will prove to be particj
,
■
ularly helpful. Chemical Bank New | j | 1 0 n i l C i i I
York Trust Company, N.Y. 10015.
.
The bank that works hardest for you.
▼▼
Northwestern Banker, May, 1965

H u m o rist Tom Colti ns Ite tiros
COLLINS, well known speak
T OM
er and columnist, retired April 15
from his position as consultant in the
public relations department of City
National Bank and Trust Company of
Kansas City.
Mr. Collins is well known to bank
ers and banking audiences through
out the nation for
h i s h u m o ro u s
and inspirational
talks.
He ap
p e a re d b e f o r e
more than 20,000
separate g ro u p s
in 35 years of
public speaking.
He attended the
U n i v e r s i t y of
K an sas be f o r e
TOM COLLINS
and after World
War I, majoring in psychology. After
graduation he went into the newspa
per business and served in editorial
department capacities on the Kansas
City Star and Kansas City Journal, be
ing Sunday and Literary Editor of the
latter paper for 15 years.

Tom Collins’ first speaking appear
ance was before a woman’s club, but
his distinctive and humorous style
soon attracted the attention of men’s
organizations in the Kansas City area.
Soon, he was so overwhelmed with
speaking requests that he abandoned
the newspaper business except to
write a daily personal column in the
Journal called, “This One’s on Me,”
and devoted all of his time to speak
ing.
In 1943, Mr. Collins joined City Na
tional Bank as publicity director and
continued his speaking career. He
appeared before hundreds of banking
groups throughout the nation during
the following 18 years. In recent
years he has retired from public
speaking appearances, but has con
tinued to serve as a consultant in City
National’s public r e l at i o ns depart
ment.

Senior Essay Contest Winners
The two winners of $1,000 scholar
ships in the eighth annual competition
for Wisconsin high school seniors

s p o n s o r e d by the Thorp Finance
Foundation, have been announced.
They are Thomas B. Hefty, 17, of
Monticello High School, who intends
to be a teacher, and John Edward
Martin, 18, of St. John Cathedral High
School in Milwaukee, who will study
engineering.
Formal presentation of awards to
the young men was made at a special
scholarship luncheon April 22 at the
home offices of Thorp Finance Cor
poration in Thorp, Wis.
Commenting on the scholarship re
sults, Foundation President Francis
J. Conway said, “ In this year’s compe
tition, which once again attracted a
record number of entrants, we found
that the students displayed very ma
ture judgment in their essays, espe
cially on the subject of voting age.”
The two topics from which seniors
in this year’s competition could choose
one to write on were: “ Should the
voting age be lowered to age 18?” ,
picked by Mr. Martin, and “ Should a
secondary school education be com
pulsory, and if so, to what extent?” ,
which Mr. Hefty selected.

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BLACK SALE SYSTEM
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FULLERTON, NEBRASKA
Write Us for Sample Sheets and Information
Northwestern
Banker, May, 1965
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

(

Joins Foreign Division
Henry J. V. K. Bewer has been elect
ed an assistant vice president of Con
tinental Bank International. CBI is
a wholly-owned Edge Act subsidiary
of Continental Illinois National Bank
and Trust Company of Chicago. CBI,
based in New York, handles interna
tional banking transactions involving
eastern port cities, and in addition has
one of the largest foreign exchange
operations in the country.
Before joining CBI, he was an as
sistant vice president in the interna
tional division of the Irving Trust
Company.

P L A S T IC sorting cab in e t is shown a t le ft in le ft photo, mounted on steering wheel desk.
Beside it is plastic, double clip listing board fo r the listing clerk. Photo at rig h t shows
sorting cab in e t and w riting desk mounted on steering wheel fo r convenience of sales clerk.

Augustus C. Long has been elected
a director of Chemical Bank New
York Trust Company, Chairman Har
old H. Helm announced recently.
Mr. Long is a director and a mem
ber of the executive committee of
Texaco, Inc. and a director of Freeport
Sulphur Company and Equitable Life
Assurance Society of the United
States.

On Manufacturers Board
Jarvis Cromwell, chairman of the
board and a director of Iselin-Jefferson Financial Company, Inc., has been
elected a director of Manufacturers
Hanover Trust Company, New York.
He has served as an honorary direc
tor of Manufacturers Hanover Trust
since 1961 and was a trustee of the
former Hanover Bank from 1935 to
1961.

179 banks are providing
benefits for their staffs through
our Retirement Program
for
Z
9

Correspondents, with invested
funds of over $10 million.

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Federal Reserve Bank of St. Louis

MANUFACTURERS HANOVER
The Bank that is known by the correspondents it keeps
Member Federal Deposit Insurance Corporation

Northwestern Banker, May, Ì965

Charts Spread In
Bank Money Kates
The spread in money rates is with
in an historically narrow range, ac
cording to the annual money rate
chart released by Garvin, Bantel &
Company, New York, the country’s
largest money brokers.
Covering the period 1956-64, the
chart graphically illustrates the pres
sure which is being placed on the
money and securities markets by the
Federal Government. President John
son has personally urged the nation’s
bankers not to raise their prime lend
ing rate above 4% per cent and at the
same time, the Federal Reserve Banks

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Contact our nearest office.

B. C. ZIEGLER
AND COMPANY
West Bend, Wisconsin
World’s Largest Underwriter
and Distributor of Institutional
Securities

have raised the discount rate (the rate
at which they lend to member banks)
to 4 per cent. These events have cre
ated the narrowest gap between the
two rates in history—only one-half
per cent. During recent years Treas
ury Bill rates have been under con
stant upward pressure to minimize
the outflow of short-term capital as
part of the continuing effort to coun
ter the deficiency in our nation’s
world-wide balance of payments. The
Administration, on the other hand,
has discouraged any increase in bank
loan rates that might threaten the
rate of economic expansion and em
ployment opportunities. The tradi
tional spread between the prime rate
and discount rate usually had been 1
to 1% percent.
According to Allan J. Stypeck, sen
ior partner of Garvin, Bantel & Com
pany, the present narrow spread will
eventually have an adverse effect on
the profits of both banks and bankers.
While loan rates are virtually un
changed, banks must pay increasingly
higher rates for time deposit money.
Accordingly, banks face greater pres
sures to maintain and improve profit
margins.
If the present condition continues
for an extended period, banks may
find it necessary to be even more re
strictive in extending credit at the

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Branch Offices:
San Francisco • New York
Chicago • St. Louis • Toledo
M inneapolis • Memphis • Dubuque
M ilw aukee and other principal
cities of Wisconsin

Northwestern
Banker, May, 1965

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

Des M oines Factory and Sales Office:

TENSION ENVELOPE CORP.
1 9 1 2 G rand A v e ., P . O. B ox 1 3 4 1
Des M o in e s , Iow a 5 0 3 0 5
P h on e 2 4 4 - 2 1 3 1
S a le s O ffices: C ed ar R a p id s + D aven p ort
F a c to r ie s : D es M oin es , K an sas C ity , S t. L ou is,
M em p h is , F ort W o rth , M in n e a p o lis,
S ou th H ack en sack , N . J .

prime rate. They might be forced to
re-evaluate “prime” borrowers, per
haps even eliminate securities brokers
from this loan classification. This in
turn may force the brokers to raise
the interest rate on margin accounts
above the traditional minimum of onehalf per cent above the prime rate.

Bank Women to Meet
The Tri-Regional Conference of the
Lake, Midwest and North Central Re
gions of the National Association of
Bank Women will meet in Indianapo
lis May 12-14. Headquarters will be
at the Indianapolis Athletic Club.
Mrs. Evelyn L. Worley, president
of NABW, and other national and re
gional officers will address the con
ference Thursday, May 13. A series
of panel clinics will feature the Fri
day sessions.

RINGING THE BELL . . .
(Continued from page 35)
Under the board of trustees, the
Foundation has 50 state chairmen
whose primary responsibility is to
help recruit and renew membership.
Membership Figures
Nationally, more than 5,400 banks,
or 40 per cent of the approximate 14,000 in the United States, representing
over 71 per cent of the total bank de
posits are Foundation members. In
Iowa, however, only 33 per cent or
223 of the 668 banks are members,
with 48 per cent of deposits repre
sented. But the need for the Founda
tion’s program in Iowa is just as great
as anywhere else in the country, as
evidenced by the fact that the 91 sav
ings and loan associations in the state
hold nearly half the savings deposits.
The Foundation’s program is de
signed to help all commercial banks
and it is effective, according to cur
rent surveys which indicate a growing
public a w a ren ess of Full Service
banking. There is a continued need,
not only for the existing program but
for additional and expanded promo
tional activities. This can only be
accomplished through the support of
banks throughout the nation.
In his 16th century work, the Eng
lish poet John Donne suggested that
no man is an island unto himself . . .
“and therefore never needs to know
for whom the bell tolls; it tolls for
thee.”
Applied to the national advertising
program and our original analogy of
the Foundation as the bell ringer in
the promotion of Full Service bank
ing, it can be said that when the bell
rings, it rings for each and every com
mercial bank in the United States.—
End.

U p and o ff to the Conventions!
Wherever bankers convene— there you’ll find the Men from the City! For City National’ s fourteen
able and experienced correspondent bankers are constantly on-the-go, constantly seeking new ideas— new ways of serving their more-than-1000 correspondent bank customers.
If you would like to know more about the unique advantages of making your correspondent connec
tion with the City National— please give us a collect call at Area Code 816, BA 1-6800. Even though
we’re o ff to the many State Conventions, you’ ll find someone minding the store.

Its g r e a t to g r o w w it h th e

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Federal Reserve Bank of St. Louis

Kansas City, Missouri
MEMBER

F .D .l.C .

th e one K an sas C ity b a n k th at h a s everyt h i
Northwestern Banker, May, 1965

(

“Yes! Tell them
we can collect by
this afternoon!”

Bob Ziemer is always ready to take the time to help solve a
problem or answer a need. Whether it’s a Collection
(same day service on all domestic, non-cash items) or
an estate problem; arrangements for protecting
securities or some information on new bonds . . .
call 330-8123 when you want fast “ yes” action.
DEPARTMENT OF BANKS AND BANKERS
D.

K. M. Barnett, Vice President
C. P. Lindholm, Vice President; R. G. Ziemer, Vice President
M. Anderson, Ass’t. Vice President; P. B. Damkroger, Ass’t. Vice President
E, N. Axness, Ass’t. Cashier; P. E. Koch, Ass’t. Cashier
J. M. Johnson, Ass’t. Cashier
H. G. Peterson, Investment Consultant
R. E. Dahl, Credit Consultant
G. T. Tovsen, Computer Consultant

Northwestern National Bank
of Minneapolis
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

B. Harris, Senior Vice President * L. P. Gisvold, Vice President

Northwestern
Banker, May, 1965

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

57
years and had served as president of
the institution for the past 18 months,
succeeding William McGee, who re
tired.

M in n e s o t a

Lady Officer

NEW S
G. A . UGGEN
K.

W A LE S

President
S e c re ta ry

Miss Mary Ann Brandt was elected
assistant cashier of the Valley Nation
al Bank in LeSueur recently. Miss
Brandt, a 1958 graduate of LeSueur
High School, has been associated with
the bank since her graduation.

W ells
M inneapolis

S evera l H u n dred H an kers A lle n ii
S la te - W id e f red it M e e tin g
of Minnesota bankers
H UNDREDS
interested in improved customer
services and increased earnings poten
tial attended the fourth annual Min
nesota Bankers Association Install
ment Credit Conference at the Radisson Hotel in Minneapolis April 20
and 21.
R. M. Burnham, president of the
First National Bank, Jackson, was
chairman of the conference.
Three nationally-prominent consum
er credit authorities were featured in
the first morning business session.
First to address the conference dele
gates was William W. McCarthy, sec
retary of the American Bankers Asso
ciation installment credit committee,
New York, concerning “Developments
in Installment Lending.”
Dr. Henry I. Rester, head of the
Finance Division of the University of
Colorado, Boulder, spoke on “ Consum
er Credit in the Great Society.” Com
pleting the morning program was
Ralph W. Pitman, senior vice presi
dent of the Central-Penn National
Bank, Philadelphia, with “ Consumer
Credit in Commercial Banks.”
Mr. Burnham presided at the ses
sion and Glenn A. Uggen, president of
Peoples State Bank, Wells, and presi
dent of the Minnesota Bankers Asso
ciation, addressed the delegates to
keynote the annual event.
The noon luncheon was addressed
by Robert Conklin who was followed
by Kenneth A. Wales, executive sec
retary of the M.B.A., who reviewed
developments in the current session
of the Minnesota legislature, particu
larly in the field of consumer credit.
The afternoon session was kicked
off with a panel presentation moder
ated by Charles A. Gage, vice chair
man of the M.B.A. Installment Credit
Committee and vice president of the
Northwestern National Bank, Minne
apolis. Panelists included the follow
ing: Clarence H. Kroning, vice presi
dent, First National Bank, Minneapo
lis; F. Rudolph Jacobson, vice presi

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Federal Reserve Bank of St. Louis

dent, First American National Bank,
Duluth; Kermit R. Bergland, vice
president, First National Bank, Wi
nona; Donald R. Bundlie, Minneapolis
attorney; and Horace F. Chamberlain,
president, Valley National Bank, Le
Sueur.
Members of the Planning Commit
tee for the Conference, in addition to
Mr. Burnham and Mr. Gage, included
H. G. H a lv orson , vice president,
Northwestern National Bank, Roches
ter; Wayne E. Kircher, vice president,
State Bank of Danube; Thomas M.
Kulp, vice president, First National
Bank, Minneapolis; A. W. Nordstrom,
assistant cashier, First National Bank,
St. Paul; Donald R. Rigsby, vice presi
dent, Marquette National Bank, Min
neapolis, and V. R. Smythe, president,
State Bank of Park Rapids.

New Directors
At a special meeting of stockhold
ers of the First State Bank of Ada
last month, Stanley C. Olson, Ada at
torney, and Philip A. DuFrene, St.
Paul businessman, were named to the
bank’s board of directors.

Increase Capital
The Belview State Bank, Belview,
has been authorized to increase the
amount of its capital stock from $25,000 to $30,000 by stock dividend.

Retirement Announced
Harold B. Farley, first vice presi
dent of the First American National
Bank of Duluth, retired recently, ac
cording to Emmons W. Collins, bank
president.
Mr. Farley will continue to serve as
a director of the institution. He had
been associated with the bank since
1954 and had been first vice president
since September, 1962.

Eveleth Officer
B. Murray Peyton
B. Murray Peyton, founder of six
Duluth area banks and active in finan
cial circles for 67 years, died recently
at his home at the age of 94 years.
He was a director of the Northern
City National Bank at the time of his
death. In 1920, he founded the Min
nesota National Bank which later was
consolidated with Northern City. He
was active, until 1963, in the Superior,
Wisconsin State Bank after having
founded its forerunner in 1897.

Sell Stock
First State Bank of Wyoming has
been a ut ho r i z e d to increase the
amount of its capital stock from $50,000 to $80,000 by sale of new stock.

To Albert Lea
Carroll C. Bergerson, president of
the Northwestern National Bank in
Litchfield, has announced his resigna
tion effective May 1 to assume the
presidency of the First National Bank
at Albert Lea.
Mr. Bergerson had been a member
of the Northwestern Bank staff for 19

William J. Engels, cashier of North
western State Bank, Osseo, has ac
cepted the position of vice president
and cashier of the First National Bank
in Eveleth, an affiliate of Northwest
Bancorporation.
Mr. Engels assumed his new duties
early last month.

Name Acting Chairman
Armin P. Beutow, vice president
and treasurer of Waldorf Paper Prod
ucts Company, St. Paul, recently was
elected acting chairman of the Rose
ville State Bank. His election fol
lowed the resignation of Wesley (Bud)
Chandler, head of a St. Paul burial
vault company, and a filing of a crimi
nal complaint against the bank’s pres
ident, Thomas G. Trygg.
Mr. Chandler said that he resigned
following a three-week dispute with
other board members over Mr. Trygg’s
suspected irregularities. The bank
president was charged in a complaint
authorized by Miles W. Lord, U. S.
district attorney, with misapplying
$1,000 of bank funds to his own use.
He had been president of the bank
since January.
Northwestern Banker, May, J965

HE election of Hugh D. Galusha,
T Jr.,
46, as president of the Fed
eral Reserve Bank of Minneapolis was
announced last month by Atherton
Bean, chairman of the board of the
bank. The position has been vacant
since February 1 when the former
president, F r e d
erick L. Doming,
r e s i g ne d to ac
cept appointment
as Under Secre
tary of the Treas
ury for Monetary
affairs.
Mr. Galusha has
served as a mem
ber of the bank
board since JanuH. D. G A L U S H A , JR.
a r y, 1963, a n d
was to take office as president May 1.
A native Montanan, Mr. Galusha at
tended the University of Montana,
Carroll College, and is a graduate of
the University of Pennsylvania. He

is a lawyer and certified public ac
countant and has been senior partner
of Galusha, Higgins & Galusha in
Helena, Mont., and Idaho Falls, Ida.
He has also been a lecturer at various
tax schools.
Prior to his election to the Reserve
Bank’s board in 1962, Mr. Galusha
was a director of the Union Bank &
Trust Company of Helena. He has
also served as a director of a number
of other organizations in the Rocky
Mountain area, including the Yellow
stone Park Company, Mountain States
Telephone & Telegraph Company, and
Eddy Bakeries Company, Inc.
In making the announcement, Chair
man Bean stated that Mr. Galusha
brings to this important post a broad
business and professional background
and an intimate knowledge of the
Ninth District.
* =t= =k
Gary Wollan, assistant vice presi
dent in charge of EDP for Marquette

l l'I M K cfjionnl fh'ttirs

National Bank, spent two weeks in
Geneva, Switzerland, last month to
conduct a detailed systems analysis
for the Overseas Development Bank
there. He was invited by Investors
Overseas Service, a Minneapolis-based
mutual fund, to do the work.
His study covered many areas of
bank systems with some emphasis on
how demand deposits as we know
them might be applied to Swiss banks.
One problem he encountered was the
difference in moneys—dollars, francs
and marks—with statements having
to be prepared in any one of the sev
eral languages and monetary values,
converted from the common money
system put into the computer.
Another problem is float, since
there is no system comparable to the
Federal Reserve or the banks’ Clear
ing House method.
* *

Karl Sharp, formerly cashier of the
First National Bank at Eveleth, Minn.,
has accepted a position with North
west Bancorporation as assistant ad
ministrator of the new “Brofit-Improvement Program” started by the
Bancorporation. He started in bank
ing in 1954 and had been with the
affiliated Eveleth bank since 1959.

=i= * *

PAN E LISTS at FPRA regional in Minneapolis last month included, left to right:
Howard Bauder, v.p. & cashier, Marquette Natl. Bk., Minneapolis; Richard Stebbins of
Richard Stebbins & Assoc., Minneapolis; Lyle Duncan, a.v.p. Northern Minnesota Natl
Duluth, and Gordon Malen, v.p., First Natl. Bk., Minneapolis. A record crowd of 330
attended the meeting.
Northwestern

Banker,

M ay,

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

965

John E. Homme, president of Haldemann-Homme, Inc., an institutional
and industrial equipment firm, has
been elected a director of Second
Northwestern National Bank.
The promotion of four members of
the bank’s staff was announced.
Richard C. Knudsen, from cashier
to assistant vice president. He was
at one time with Northwestern Na
tional Bank, and joined Second North
western after military service.
John Gmit.ro, auditor, succeeds Mr.
Knudsen as cashier. He began his ca
reer with Northwestern National in
1927.
June P. Hanson, a secretary and
women’s consultant, and Jack E. Bei’g
to assistant cashiers.

Answer Banker

BOB BEAUPRE does quite

a job on behalf of our correspondents...

Bankers have come to recognize our Robert W.
Beaupre as an extremely able correspondent
man. T h a t’s something we ourselves have
known all along . . . After getting his start in
banking at Faribault, Minn., he came to us
in 1952 with a brand new diploma from the
University o f Minnesota school of business.
Three years later he was advanced to Auditor
o f our bank, a background that has stood him
in good stead during the past ten years that he

has been in our Correspondent Bank Division.
This is particularly true as he discusses with
correspondents how our computer services can
improve their demand deposit and installment
banking operations . . . These and other phases
of correspondent banking keep Bob Beaupre
plenty busy. But he’s never too busy to discuss
your bank’s needs. T o reach him, or any of our
other Correspondent Banking team, just phone
6 1 2 -F E d e ra l 4 -4 1 4 1 .

FIRST NATIONAL BANK
OF MINNEAPOLIS
"Vbe ßcuiÄe^d! ßa u k o j the 'Ufi'pesi MiJUaedi"

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Federal Reserve Bank of St. Louis

Northwestern Banker, May, 7965

Minnesota News

50th Anniversary
The Sturgeon Lake State Bank cele
brated its 50th year of business recent
ly with an open house. The bank,
which has been remodeled several
times during its history, will undergo
more remodeling in the near future,
according to bank officials.

Stock Dividend
Northern State Bank of Thief River
Falls has been authorized to increase
the amount of its capital stock from
$100,000 to $200,000 by stock dividend.

Banker 65 Years
W. J. Browne, president of the Wa
dena State Bank, Wadena, recently
noted his 65th anniversary in the
banking business. He will celebrate
his 84th birthday July 4. He continues
to be at his desk at the bank each day.

Assistant Cashier
James W. Buisman has been elected
assistant cashier of the Bank of Willmar and has assumed his position in
the installment loan department, ac
cording to W. E. Lindberg, bank pres
ident.

Elected Officers
E. J. Hamernick, executive vice
president, reports that Karl D. Stotes-

What is
the Canadian
Economic
outlook?
T h e G N P in Canada this year is
expected to have grown by 8 % to
$46.5 billion. If you want to help
clients expand into this fast-grow
ing market, Bank of M ontreal’s
in fo rm a tiv e m o n th ly B u s in e s s
R ev iew can help answer your
questions. It’s yours for the asking.
For details on the many other
services offered Am erican bank
ers by Canada’s First Bank, visit
our nearest U. S. office.

The Bank of
Montreal supplies
the answers
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Northwestern Banker, May, 1965

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

bery has been elected a vice president
and Harold P. Weinacht has been
elected cashier of the Brooklyn Center
State Bank.

Janesville Teller
Joseph Britton, a Janesville farmer
for 18 years, has accepted a position
as teller at the Janesville State Bank.
He assumed his banking duties last
month.

Open New Bank
Public open house was held at the
new First National Bank building in
St. Peter last month. The bank is lo
cated at Nassau and Third Streets in
St. Peter. The new Nicollet County
Bank opened its doors diagonally
across the street from the new First
National building early in February.
Cost of the First National Bank’s
new home was approximately $225,000.

Postpone Bank Hearing
The hearing on the proposed Burns
ville State Bank, which was to have
resumed last March, has been post
poned to May 20, in order to allow
Howard Houston, president of the Sav
age State Bank, to recuperate from a
leg fracture sustained several weeks
ago.

The Savage State Bank, along with
the Valley National Bank, the First
National Bank of Lakeville and the
First State Bank of Rosemount, op
poses the proposed bank.
Applicants for the new bank are
M. G. Astleford, William Jackson and
Robert Daly.

To Haze Buildings
Northfield National Bank has sub
mitted an application for a permit to
raze six buildings in the community.
Five of the buildings would be razed
in the near future while the bank
operated in the sixth until the com
pletion of the bank’s new quarters.
At that time, the banking operations
would be moved into the new building
and the sixth building would be razed
to make way for a new drive-in bank
ing facility.

New Drive-In Bank
The new Northwestern National
Bank drive-in facility at First Avenue
and First Street S.W. in Rochester
opened for business recently.

To Rochester Bank
Pat Delmore, vice president of the
Lake City State Bank, has been named
to head the newly-created Customer
Service Department of the Olmsted
County Bank at Rochester, according
to T. S. Scallen, senior vice president,
Mr. Delmore will serve as vice presi
dent of the Rochester institution.

Boost Capital

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The State Bank of Rogers has been
authorized to increase the amount of
its capital stock from $25,000 to $50,000
by sale of new stock.

In a recently-completed transaction,
the First National Bank of Farmington purchased a site for a new bank
ing house. The site is part of the
historic Dodge landmark in Farmington. Possession will not pass to the
purchaser until July 1, but bank offi
cials state that the institution will
build a modern banking house on the
tract in 1966.

Honor Retiree
An open house was held recently at
the Security State Bank of Claremont
in honor of Frank Ferrin, 78, who re
tired after a 54-year banking career
which began at the Mantorville bank.

I FIRM_____________

Capital Boosted

I ADDRESS__________

The First State Bank of Kensing
ton has been authorized to increase
the amount of its capital stock from
$25,000 to $50,000 by stock dividend.

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Bank Buys Site

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W e’ve built up our team by adding a new
correspondent banker to the Midland staff: Jack W eber. He’ll be
working with teammates John Ordos and D oug Johnson to give
you even better service. T h e Midland National Bank would like to
serve you. Call on Jack W eber and the Midland team soon. You’ll
discover they prove Midland’s friendship with special service.

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Federal Reserve Bank of St. Louis

THE BANK WITH THE BIG WELCOME

Midland National Bank
FEderal 2-0511 • 401 Second Ave. So. • Minneapolis, Minn. 55440
M e m b e r Federal D eposit Insu ra n c e Corporation

Northwestern Banker, May, 1965

Minnesota News

lllnsinns

inIn stallinoti/ Lonilini/
(Continued from page 40)

ing. A very large bank in the Chicago
area sustained a loss of several hun
dred thousand dollars recently in such
an operation. The principle of having
a nearly perfect loan security, since
the insurance company will cancel the
policy and return unearned premiums
in the event of a default, is definitely
illusory. The illusion lies in the fact
that no collateral actually exists until
the policies are verified and the insur
ance company has agreed to protect
the bank’s position. Insist upon:

CLIFF ADAMS

STANLEY EVANS

1. Audit-minded ness. An attitude
insistent upon separation of duties
and rotation of persons and dual con
trol along with cross checks through
out the entire operation of the depart
ment.
2. Four primary checkups:

a. That the borrower is whom he is
thought to be;
b. That he bought the chattel he is
thought to have bought;
c. That he still has the chattel the
loan was made on;

ED NEWELL

JIM McGILL

SEE YOU AT THE
CONVENTION!
South Dakota
Bankers
Association

Nebraska
Bankers
Association

M ay 13-15

M ay 3 -4

Sioux Falls

Omaha

LIVE STOCK

NATIONAL S BANK
IO U X C IT Y
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION
Northwestern Banker, May, 1965

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Federal Reserve Bank of St. Louis

d. That the borrower is the person
making the payments.

3. Watch dealer paper:

a. Too much paper from the dealer’s
employees;
b. Coupon books in dealers’ hands
— watch out for money orders
sent by dealers on exact due
dates;
c. Carbon contracts instead of orig
inals—with whom are the origi
nals being financed?
d. Delay in title receipt—indicating
a possible float on trade-ins with
other finance organizations;
e. The same person, but different
signature, on the loan application
and the contract;
f. Returned coupon books or past
due notices on the first install
ment. These call for an immedi
ate field check since you have
either a fraudulent deal or a bad
credit risk.
4. Direct verification. This is just
as important in connection with in
stallment loans as it is on consumer
loans or checking or savings accounts.
The verification should include the
account number, original loan amount,
interest rate, number of payments
made, amount of each payment and
date of the last payment.
5. Polygraph examination. From
the top management down this
should be set up so that every em
ployee will be run during the course
of a three-year period and should be
a condition for new employment. The
polygraph is a valuable supplement to
audit controls because it helps in both
preventing and detecting peculations.
It is especially valuable in discovering
situations where, through either pur
poseful destruction or avoidance of
preparation, there are no records to
audit.
What else can be done? Watch
out for “Little Red Flags.”
Maybe it is perfectly alright for
your customer credit man to vacation
with a car dealer; but be on guard
enough to be alarmed.
Maybe job enthusiasm is so high
that Joe or Mary wants to follow
transactions all the way through, but
don’t permit them to do so.
Undoubtedly some people are good
money managers and can stretch their
dollars farther than you or I—but if
someone in your approximate income
bracket is living five times as “high as
on the hog” as you, management
should certainly investigate where the
extra money comes from.—End.

PiUHjrant /o r the

South D a k ota tta n k crs A sso cia tio n
A n n u a / Convention
FALLS will again be the site for the South Dakota Bankers Associa
SIOUX
tion convention as the state’s hankers gather there May 13-15 for their an
H. E. I V E R S O N

nual meeting. Headquarters will be in the Sheraton-Cataract Hotel.
Presiding at the business sessions will be H. E. Iverson, SDBA president,
who is chairman of the Farmers State Bank at Canton. Serving with him the
past year and scheduled to move up to the presidency in normal election pro
cedure is Robert H. Walrath, president of First Citizens National Bank, Watertown. Second vice president is J. S. Holdhusen, president of Ipswich State
Bank. A. S. (Barney) Gullickson is executive secretary-treasurer of the asso
ciation.
THURSDAY, MAY 13

R. H. W A L R A T H

A.M.
9:00-6:00 Registration—Sheraton-Cataract Hotel.
9:00 Golf Tournament—Minnehaha Country Club. Final tee off at noon.
P.M.
2:00-5:00 Bowling Tournament—Suburban Bowling Lanes. Main trophy do
nated by Northwestern Banker.
7:30-10:30 Dutch Treat Party—Wesward Ho Country Club. Dinner. Music
for dancing.
FRIDAY, MAY 14

A. S. G U L L IC K SO N

OD LIN

A.M.
8:00 State Bankers’ Committee Breakfast—Mural Room.
9:00 Wisconsin Graduate School of Banking Breakfast—East Room.
9:30 SDBA Resolutions Committee Meeting—Lamp Room. Charles H. Burke,
vice president, Pierre National Bank, Chairman.
10:00 ABA Nominating Committee Meeting—Oak Room. George W. Toft,
president, Commercial Trust & Savings Bank, Mitchell, Chairman.
SDBA Nominating Committee Meeting—Glenn H. Waltner, president,
First National Bank, Freeman, Chairman.
P.M.
12:30 Ladies’ Reception and Luncheon—Westward Ho Country Club. Chair
man, Mrs. Charles Gregg, Sioux Falls.
1:30 Call to Order—Sheraton-Cataract Hotel Ballroom. Presiding, H. E. Iver
son, SDBA president.
President’s Address—Mr. Iverson.
Address—“4 Dreams of Man,” Dr. John Furbay, appearing through the
courtesy of General Motors Corporation.
Meeting of the State ABA members. Presiding, C. C. Lind, South Da
kota ABA Vice President, and President of First National Bank, Aber
deen.
Report of Resolutions Committee—Charles H. Burke, vice president,
6:30-8:00 Reception and Social Hour—Arkota Ballroom.
SATURDAY, MAY 15

P. S. N A D L E R

C. R AND

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Federal Reserve Bank of St. Louis

A.M.
8:00 SDBA Executive Council Breakfast Session—Lamp Room.
10:00 Call to Order—Mr. Iverson.
Address—Reno Odlin, President of the American Bankers Association
and Chairman, Puget Sound National Bank of Tacoma, Wash.
Address—Dr. Paul S. Nadler, Professor of Finance, New York Univer
sity.
12:00 Past Presidents’ Luncheon—Oak and Mural Rooms.
P.M.
2:00 Call to Order—Mr. Iverson.
Report of Nominating Committee—Chairman, Glenn Waltner, President,
Election and installation of officers.
Presentation of 40- and 50-year pins.
Address—“The Great Charter and The Great Society”—Clayton Rand,
Editor of Dixie Free Press, Gulfport, Miss.
7:00 Banquet and Entertainment—Sioux Falls Coliseum.—End.
N orthw estern

Banker,

May,

1965

South Dakota News
Toy National Bank: Leslie H. Olson,
vice president and cashier; Conrad E.
Aronson, assistant vice president, and
James E. Stachour, assistant cashier.

You
W ill Set* Them at th e
South llu h otu i'on ven tion
HE following metropolitan bank
ers, service and equipment dealers
have indicated they will be attending
the South Dakota Bankers Associa
tion annual convention in Sioux Falls,
May 13-15:

Chicago
American National Bank and Trust
Company: Roy West, assistant vice

president and Bob Walcott,
sentative.

repre

Continental Illinois National Bank
& Trust Company: Charles W. Battey,

second vice president, and Paul Jonescue, assistant cashier.
First National Bank: Raymond V.
Dieball and Clarence E. Cross, Jr.,
assistant cashiers.
Harris Trust & Savings Bank: Karl
Velde, investment department repre
sentative, and W. W. Howell, assistant
cashier.
Denver
Central Bank & Trust Company:

George V. Janzen, assistant vice pres
ident.
Minneapolis
National Bank:

George S.
Henry, vice president; Fred Haw, as
sistant cashier, and Robert F. Carlson,
representative.
Marquette National Bank: R. W.
Crouley, vice president, and Avery G.
Fick, assistant vice president.
Midland National Bank: Douglas M.
Johnson, vice president; and John W.
Ordos and Jack W. Weber, assistant
cashiers.
Northwestern National Bank: Philip
B. Harris, senior vice president; Keith
Barnett, vice president; Donald M.
Anderson and Paul B. Damkroger, as
sistant vice presidents; Floyd J.
Stewart, assistant cashier.
First

New York
Chase Manhattan Bank: Alden K.

Small, assistant vice president.

First National City Bank:

Dan C.

deMenocal, vice president.
Irving Trust Company: Donald A.
Stephen, assistant secretary

vice president, and Bob Brown, as
sistant vice president.
The Omaha National Bank: Fred
Douglas, vice president, and Del Olson,
assistant cashier.
United States National Bank: Jay
F. Bordewick, assistant vice presi
dent.
Rapid City
American National Bank & Trust
Company: A. E. Dahl, chairman of the

board; Earl Keller, senior vice pres
ident, and Walter Pailing, president.
First National Bank of the Black
Hills: Charles T. Undlin, executive

vice president, and Frank M. Kober,
senior vice president.
St. Paul
National Bank:

A. A.
Haessig, vice president, and J. D.
Cleary, assistant vice president.
First National Bank: D. A. Shern,
vice president; J. E. Raymond, assist
ant vice president, and H. N. Snyder,
assistant cashier.
Stock Yards National Bank: L. M.
Broom, executive vice president.
American

Sioux City
First National Bank: Dick Taylor,

vice president.
Livestock

National

Bank:

One of the Nation’s Strongest by Any Standard of Comparison

JS^ational fidelity \ jfe
Northw estern

Banker,

May,

965

Adams, president; S. W. Evans, first
vice president, and E. L. Newell, as
sistant vice president.
Security National Bank: Thomas C.
Horn, senior vice president; John A.
Diefendorf, vice president, and R. E.
“Gene” Hagen, assistant cashier.

Mr. Dale Oleson, National Fidelity’s credit
life representative in South Dakota, will he
in Sioux Falls May 13-15 for the South Da
kota Bankers annual convention. Ask Dale
to explain how our flexible and comprehen
sive credit life programs can work for your
bank.

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

H. Byers, president: Des Moines.
Central States Health & Life Com
pany:
F.
E. Davenport and Company: Clin

Manufacturers Hanover Trust Com
pany:
|
ton H. Dodd.
Omaha
De Luxe Check Printers, Inc.: By
First National Bank: Carl N. Bloom,

Convention Bound!

INSURANCE COMPANY

Bank Equipment and Other Firms
Bankers Service Company: Henry

KANSAS CITY 6, MO.

ron Reents, sales representative.
Diehold, Inc.: Paul Keller and
Charles Miller, representatives.
Farm Business Council: R. G. Dil
lingham, Urbana, 111.
Lawrence

W arehouse

Company:

Henry Rhame, district manager, St.
Paul.
Mosler Safe Company: John A.
Hook, Sioux City.
National Fidelity Life Insurance
Company: Dale Oleson.
North Central Life Insurance Com
pany: Elmer Diedtrich, Wil Rogers

and Bill Stohr.
St. Paul Insurance Companies: Leon
ard R. Moeller, assistant secretary;
Ellwood E. Linder, special agent; W.
Bruce Mitchell, South Dakota, man
ager, and E. Warren Bessler, state
agent.
St. Paul Terminal Warehouse Com
pany: Russell V. Peterson, district

manager, Omaha.
United American Life Insurance
Company: Fred E. Pfaff, vice pres

ident; Keith Kohrs and Ray Vogel,
representatives.

A.I.B. Year Ends
The 13th annual American Institute
of Banking educational year in Wa
tertown was concluded recently with
a banquet at which M. G. Slaathaug,
president of Peoples State Bank, Sum
mit, was given the A.I.B. Recognition
Award.
A charter member of the Watertown area organization, Mr. Slaathaug
was the second recipient of the award
in the organization’s 13-year history.

New Bank Building
The First National Bank of Bristol
last month moved into its new quar
ters and held an open house celebra
tion to mark the event. The bank
had occupied its former building since
1916, according to Lloyd Lundeen,
president.

Apply for Drive-In
R. H. Walrath, president of the
First Citizens National Bank, Watertown, recently reported that the bank
operate a detached drive-in bank fahad made application for authority to
cility in Watertown’s Magic Mile area.

W e’re looking forward to having
you join us d u rin g th e SOUTH
DAKOTA BANKERS CONVENTION!
SIOUX

FALLS,

S.D.

Sheraton-Cataract Motor Inn
MAY 13,14,15
S

e e

Y ou

CURT LOVRE

BILL HEIMERMAN

President

JOHN KRASTINS

Senior Vice President

Asst. Vice President

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SIOUX FALLS J j

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DOWNTOW N V
STOCKYARDS BRANCH
C O L O N IA L BRANCH

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BANK

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

I O

e
A

s t e
L

IN SIOUX FALLS: DOWNTOWN, COLONIAL, S .F. STOCKYARDS
IN BROOKINGS, CHAMBERLAIN, DELL RAPIDS, GREGORY,
HURON AND MADISON

Northwestern Banker, May, 1965

So uth

D a k o ta

News

Sioux F u lls C om m ittees
P r e p a r e to r C onvention
S IOUX FALLS bankers will host
the 73rd annual state convention
of the South Dakota Bankers Associa
tion May 13-15, according to A. S.
Gullickson, Huron, executive secre
tary of the association.
Erling Haugo, president of the
Sioux Valley Bank in Sioux Falls, is
general chairman of the three-day
convention, according to H. E. Iver
son, president of the Farmers State
Bank, Canton, and president of the
South Dakota Bankers Association.
Committee chairmen for the event,
to be held at the Sheraton-Cataract
Motor Inn, are as follows:
Earl G. Miller, vice president, Na
tional Bank of South Dakota, housing
and reservations; H. Ivan Steen, vice
p r e s i d e n t , Northwestern National
B a n k , g o l f tournament; V erlyn
Schmidt, vice president, Western State
Bank, bowling tournament; Frank E.
Duffy, vice president and cashier,
Union Bank and Trust Company,
Thursday Dutch Treat party; Orville
L. Bonacker, vice president and cash
ier, First Natioanl Bank, Friday eve
ning social hour; John V. Krastins,
cashier, Northwestern National Bank,

transportation; Curtis Kuehn, assist
ant vice president, First National
Bank, publicity; Jack Bork, cashier,
Sioux Valley Bank, registration; and
Mrs. C. D. Gregg, women’s luncheon
and entertainment.

Washington Trip
A delegation of South Dakota bank
ers headed by President H. E. Iverson
and A. S. Gullickson, executive secre
tary, completed a three-day legislative
trip to Washington, D. C., last month.
The itinerary included visits to the
offices of the ABA, U. S. Chamber of
Commerce, National Association of
Supervisors of State Banks, Comptrol
ler of the Currency, Federal Reserve
and FDIC. The group also visited
South Dakota congressmen. The trip
is an annual event.

Joins Gayville Bank
N. H. (Red) Kortuem recently as
sumed his duties as executive vice
president of the Security State Bank,
Gayville. Mr. Kortuem came from the
Union State Bank of Thief River Falls
where he had been employed for 16
years.

Named Vice President
B. Murrel (Smoky) Kratzer last
month joined the Huron Branch of
the Northwest Bank of Sioux Falls,
according to C. A. Lovre, bank presi
dent. Mr. Kratzer as vice president
of the bank, will assume responsibili
ties in the development of trust serv
ices.

Cashier at Brandon
D. W. Cotton has been appointed
cashier of the Brandon Savings Bank,
according to Einer Pearson.

New Vice President
George J. Peterson, Fort Benton,
Mont., has been elected a vice presi
dent of the National Bank of South
Dakota, S i o u x
F a l l s . He h a d
b een p re s id e n t
and a director of
F ir s t C houteau
C o u n t y Bank,
Fort Benton.
Prior to joining
the First Chouteau County
Bank, Mr. Peter
son had held sev
G. J. P E T E R S O N
eral officer posi
tions with the First National Bank of
Great Falls. He was associated with
that bank for a total of 11 years.
First Chouteau County Bank, the
Great Falls Bank and the National
Bank of South Dakota, are all affiliates
of the First Bank Stock Corporation.

Farm Representative
Ron Bruns, former Minnehaha Coun
ty assistant county agent, last month
assumed the position of agricultural
representative at the Dakota State
Bank in Baltic.

Banco Earnings Report

W e’re hungry for the

opportunity to be your
correspondent bank. Test us
with any request for service.

■A '

See how we perform. W e’ll eat

à f

up any job you give us.

Carl Pohlad, President
CORRESPONDENT BANK DEPARTMENT Otto Preus, Vice President,
R, W. (Bill) Crouley, Vice President, George Coonrod, Vice President,
Avery Fick, Assistant Vice President, Stewart Stotesbery, Representative

THE MARQUETTE NATIONAL BANK
OF MINNEAPOLIS

SEVENTH AT MARQUETTE • FEDERAL 3-5411
Member Federal Deposit Insurance Corporation

Northwestern Banker, May, 1965

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

Northwest Bancorporation reported
consolidated net operating earnings of
$4,826,000, or 86 cents per share, for
the first three monthis this year.
This compared with $4,249,000, or 78
cents per share, for the same quarter
in 1964. Gross operating earnings
were up 8.8 per cent to $32,160,000.
Continued growth in time deposits
in the Banco affiliated banks was re
flected in the 17.8 per cent increase in
interest costs. Operating expenses,
other than interest, were up 5.4 per
cent.
Consolidated deposits in the 78 affili
ated banks totaled $2,301,513,000 on
March 31. This was a gain of 7.8 per
cent over the same date a year ago.
Loans were at a record $1,406,136,000,
an increase of 13.2 per cent over the
end of the first quarter in 1964.

The National
O F

S O U T H

Bank

D A K O T A
BANK A T THE SIGN
OF THE
W EATH ERBALL

i 5
CONVENIENT
LOCATIONS
IN SIOUX FALLS

W ith Drive-In Banking
Service and Free
Customer Parking.

MAIN OFFICE
M A IN AVENUE AT EIGHTH

336-1200

SOUTH BRANCH

EAST BRANCH

M IN N ESO TA AVE. AT 33rd

EAST 10th A T OM AHA

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

336-0430

__________ 336-2145

W E L C O M E BANKERS
M em ber of Fed eral D eposit Insurance C o rp o ratio n

Northwestern Banker, May, 1965

Pick up a pencil and circle the cities to which
you travel frequently. When you measure the
distance in minutes, the way Ozark does, you
can see how flying gives you time to make
more calls and get more done . . . with a m ini
mum of effort. No wonder smart business
men fly Ozark between these cities . . . and
to catch the big jets for distant destinations.

Northwestern
Banker, May, 1965
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

How about you? Next time you set out to
cover your territory, hop to it, Go-Getter, on
Ozark Air Lines!

{

NBA Convention May 6-8

o r t h

V. F. H E G E H O L Z

W . J. D A N E R

FULL and informative program is planned Thurs
day, Friday and Saturday, May 6, 7 and 8, as mem
bers of the North Dakota Bankers Association gather in
Minot for the organization’s 80th annual convention.
L.
D. Thorson, vice president, First National Bank,
Minot, is general chairman in charge of the convention
which will be hosted by the Minot banks. William J.
Daner, Bismarck, is secretary of the NDBA.
The complete program, including festivities Thursday
afternoon and evening, appears below:

PROGRAM
NORTH DAKOTA BANKERS ASSOCIATION
80th Annual Convention
May 6-8, Clarence Parker Hotel
Minot, North Dakota

Registration—Clarence Parker Hotel.
Cocktails and hors d’oeurves.
Registration closes for day.
Dancing.
FRIDAY, MAY 7

Registration—Clarence Parker Hotel.
Call to Order—V. F. Hegeholz, President, North
Dakota Bankers Association and President, Peo
ples and Enderlin State Bank, Enderlin.
Invocation.
Welcome.
Response—Gordon Weber, Vice President, North
Dakota Bankers Association and President, Farm
ers State Bank, Lisbon.
Address by Hugh D. Galusha, Jr., president, Fed
eral Reserve Bank of Minneapolis.
Coffee break.
“Bank Savings Bonds”—S. J. Kryzsko, President,

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

t a

D a n t o

S. J. K R Y Z S K O

i n

A. L. G A R N A A S

Winona National and Savings Bank, Winona,
Minn.
“Uniform Commercial Code in Practice”—Warren
F. Vaughn, Vice President, Security Trust and
Savings Bank, Billings, Mont.
Address—Eugene Rich, North Dakota State Bank
Examiner.
Stag luncheon.
Social hour.
Banquet.
Invocation.
Address—Hon. Mark Andrews, Congressman from
North Dakota.
SATURDAY, MAY 8

Breakfast—Past Presidents and 40-Year Bankers.
Breakfast—Wisconsin School of Banking.
Call to Order.
Necrology Service.
Address—Representative of Foundation for Eco
nomic Education.
Coffee break.
Business Meeting—North Dakota Bankers Asso
ciation.
1. Agricultural Committee Report.
2. Bank Management Committee Report.
3. Insurance Committee Report.
4. Legislative Committee Report.
5. Election of Officers.
6. Address—V. F. Hegeholz, President, North Da
kota Bankers Association.
7. Installment of New Officers.
8. Adjournment.
American Bankers Association State Meeting—A.
L. Garnaas, State Vice President, American Bank
ers Association and Vice President, Farmers &
Merchants Bank of Sheyenne, presiding.—End.
Northwestern Banker, May, 1965

N o rth

D a k o ta

News

N o rth D a k o ta

C onvention C om m ittees X n m eil
D. THORSON, vice president of
• the First National Bank in Mi
not, is general chairman of the com
mittee organizing and planning the
1965 convention of the North Dakota
Bankers Association to be held in
Minot, May 6-8.
Other members of the general steer
ing committee are: T. A. Solheim,
president, American State Bank; G.
M. Johnson, president, First National
Bank; W. E. Keller, president, First
Western State Bank, and W. D. John
son, president, Union National Bank,
all of Minot.
Following are chairmen of the com
mittees responsible for convention ac
tivities:
Registration — Morris O. Broschat,
assistant vice president, American
State.
Reservations — Orrin Baertsch, vice
president, American State.
Bowling—Ervin E. Engel, vice pres
ident, First National.
Golf—A. E. Fiedler, vice president,
First National.
Transportation — James Norton,
cashier, First Western State.
Ladies’ Program — Mrs. George M.
Johnson, Mrs. T. A. Solheim, Mrs. W.
E. Keller, and Mrs. W. D. Johnson.

First

Night

Party

(Thursday) —

Jack Hoeven, vice president, Union
National.
Noon Luncheon (Friday) — Oscar
Smith, vice president, American State.
Evening Banquet (Friday)-— Gary
McDaniel, vice president, First West
ern State.
Exhibits—Russ McDaniel, assistant
vice president, American State.

D e c is io n U p set
Judge W. C. Lynch, Burleigh Coun
ty District Court, has reversed a deci
sion of the North Dakota State Bank
ing Board which denied the applica

tion of the American State Bank of
Williston to establish a paying and
receiving station in Grenora.
The state board had ruled May 12,
1964, that the bank could not estab
lish a station in Grenora, although the
bank has numerous depositors in the
area.
The First National Bank of Willis
ton opposed the application, having
expressed a desire to establish its own
branch in Grenora. The decision of
the banking board was appealed to the
District Court by the American State
Bank.
Among other things, the court ruled
that the state banking board had ac
cepted hearsay as evidence in its hear
ing and that the First National Bank,
by virtue of its national charter, was
not a proper party to the hearing.

N ew B a n k B u ild in g
The First National Bank of Dickin
son this spring is scheduled to begin
construction of a new bank building
which will provide quarters four times
larger than does the present bank.
Mrs. E. A. Nachtwey, president of
the bank, said the new building will
be completed early next year at a
cost of approximately $500,000.

F o u r P r o m o te d
Palmer Rustan, K. M. McConnell,
K. G. Skadeland and J. D. Gannaway
have been promoted to vice presidents
at the American State Bank at Willis
ton. In addition, Lyle Sorum, former
director of distributive education at
the University Center in Williston,
was named an assistant vice president
in charge of loaning functions, public
re la tio n s, personnel administration
and the bank’s education program.

S to c k h o ld e r s M eet
Stockholders of the new Stutsman
County State Bank in Jamestown met

recently and elected R. E. Meidinger
president of the bank. W. E. Sum
mers was elected executive vice presi
dent and Dean Hegeholz, formerly of
Enderlin, was named cashier and sec
retary.
The bank opened in mid-March al
though some remodeling work re
mained to be completed. The institu
tion was capitalized at $360,000—capi
tal totaling $150,000, surplus of $150,000 and undivided profits of $60,000.

N ew B a n k L o c a tio n
Community National Bank recently
moved to its new South Forks loca
tion at 1616 South Washington Street.
It had occupied its former building,
at 2305 South Washington Street, since
May, 1963.

S tate B o n d C h a irm a n
In recent ceremonies in the Federal
Building in Fargo, A. M. Eriksmoen,
president of the Dakota National
Bank, Fargo, was sworn in as volun
teer state chairman of the U. S. Sav
ings Bonds program in North Dako
ta. The new chairman was appointed
by former Secretary of the Treasury
Douglas Dillon to succeed Adrian O.
McLellan, formerly of Merchants Na
tional Bank & Trust Company, Fargo.
Mr. McLellan, who left the state Feb
ruary 1, had been state chairman for
a dozen years.

N am ed to P o sts
Joseph Vandal was named auditor
and Robert Eckerdt was designated
loan officer recently at a meeting of
the board of directors of the First
Bank of Rolla.

B a n k E x p a n s io n
The Bank of Tioga is scheduled to
expand its banking house to include
an adjoining area of the present bank.
G. C. Anderson, executive vice presi
dent of the bank, reports that tenta
tive plans call for teller windows to
be installed in the additional area.

N ew T e lle r M a ch in es
The State Bank of Kenmare an
nounced recently the installation of
new electrically operated teller ma
chines designed to permit faster win
dow service. The new system elimi
nates the use of passbooks, but pro
vides registered receipt records.

W e’re headed
convention way
We’ll be in Minot and Sioux
Falls to say hello and renew
old friendships. And if we
say the word “ hail” . . . it's
just because the gang’ s all
there.

Northwestern
Banker, May, 1965
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

P r e sid e s at L B .A .

LARGEST H A Il INSURANCE W RITING OFFICE IN THE NORTHWEST

Lee M. Stenehjem, president of First
International Bank of Watford City
and president of the 6,300-member In
dependent Bankers Association, last
month presided over that organiza
tion’s 31st annual convention in Hol
lywood, Fla.

N o rth

D a ko ta

News

You W ill See Them ni th e
N o rth ih ih otu T on een tion
T HE following metropolitan bank

Lawrence

W areh ou se

Company:

ers, service and equipment firms
have indicated they will be attending
the North Dakota Bankers Associa
tion’s annual convention in Minot,
May 6-8.

Henry Rhame, district manager, St.
Paul.
Mosler Safe Company: John A.
Hook, sales engineer, Sioux Falls.

Chicago
Continental Illinois National Bank
and Trust Company: Paul Jonescue,

and Merlin Menk.

assistant cashier.
First National Bank: Clarence E.
Cross, Jr., assistant cashier.
Harris Trust and Savings Bank: W.
W. Howell, assistant cashier.
Minneapolis
National Bank:

George S.
Henry, vice president; Edward L. Kalafat, assistant cashier, and Robert
Swanson, representative.
Marquette National Bank: R. W.
Crouley, vice president, and Avery
G. Fick, assistant vice president.
Midland National Bank: Douglas M.
Johnson, vice president; John W.
Ordos and Jack W. Weber, assistant
cashiers.
Northwest National Bank: Keith M.
Barnett and Leonard P. Gisvold, vice
presidents; Donald M. Anderson, as
sistant vice president, and John M.
Johnson, assistant cashier.
First

New York
Chase Manhattan Bank:

Ian Mac

Donald, assistant treasurer.
First National City Bank:

Dan C.

deMenocal, vice president.
Irving Trust Company: Donald A.
Stephen, assistant secretary.

National Fidelity Life Insurance
Company: Dale Oleson, Robert Stroud
North Central Life Insurance Com
pany: Ray Coty, Bob Stassen, and Wil

Rogers.
Recordak Corporation: Robert Pur

dy.
St. Paul Insurance Companies: Leon
ard R. Moeller, assistant secretary; Ellwood E. Linder, special agent; A. M.
Timm, North Dakota, manager; and
Donald Jorgenson, state agent.
St. Paul Terminal Warehouse Com
pany: Robert P. Larkin and John

Vaughn.

O p e n H o u se in G ra n d F o r k s
The Community National Bank of
Grand Forks held the grand opening
of its new Williamsburg Colonial
structure on Saturday, May 1. The
building on Highway 81 at the corner
of 17th Avenue and South Washing
ton was completed and occupied on
March 15 of this year. The one-story
edifice, 76 by 48 feet, has two drive-in
teller windows and a complete lower
level. The main floor houses the five
teller stations, the directors’ room, the
officers area, and the bookkeeping
and transit department besides two
drive-ins. The lower level is com

prised of the vault and safe deposit
box area, community room, employ
ees’ lounge area, heating and air con
ditioning facilities. The construction
includes a passageway to an outside
drive-in with the use of a spiral stair
way.
The Colonial theme, incorporating
the colors blue and gold, has been con
tinued throughout the building, in
cluding the carpet, wall colors, drapes,
and the corresponding formal furni
ture. Special attention has been given
to the proper choice of chandeliers,
the use of wainscoting including the
tellers’ area, and the relationship to
the outside decor. A large mural cov
ers the front wall of the downstairs
community room.
The bank opened for business in
South Forks on May 1, 1963, and oper
ated for approximately two years in a
temporary location at 2305 South
Washington. Located in the rapidly
expanding suburban area of Grand
Forks, the bank is locally owned and
originally chartered at $150,000. Don
ald C. Miller is president; Harold V.
Abley, vice president, and Dennis D.
Douville, cashier. Directors are Harold
V. Abley, Charles Goodman, John Ingwalson, Edward Lander, Thomas McElroy, Donald C. Miller, Robert Pile,
Richard Smith, and Earl Strinden.

Manufacturers Hanover Trust Com
pany: Carl Carlson, assistant vice

president.
St. Paul
National Bank:

A. A.
Haessig, vice president, and D. H.
Johnson, assistant vice president.
First National Bank: D. W. Buckman and J. F. Mullen, vice presidents,
and J. E. Raymond, assistant vice
president.
Stock Yards National Bank: H. W.
Lathen, vice president.
American

Bank Equipment and Other Firms
Burroughs C o r p o r a tio n : Jam es

Bischke, David Viste, Tony Gunder
son and Ted Pederson.
De Luxe Check Printers, Inc.: Rollie Johnson, sales representative, St.
Paul.
Diebold, Inc.: Charles Miller and
Alvin G. Schlegel, representatives.
Farm Business Council: R. G. Dil
lingham, Urbana, 111.

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

LOOKING FOR A
CORRESPONDENT
BANK IN THE
M ID-CONTINENT
AREA?

T h in k ...
THE FIRST NATIONAL B A N K
A N D TRUST CO M PAN Y
TU LSA , O KLAHO M A

Northwestern Banker, May, 1965

Northwestern
Banker, May, 1965
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

look for more than a feed sign
(1,101 new dealers did last year)
Look for the sign that says P U R IN A C H O W S . Then look at what’s behind the
sign— the Ralston Purina Com pany, world’s leading manufacturer o f formula
rations and health aids with 71 years o f research, farm testing and experience in
the business. And the company that down through the years has had the best
record of building profitable dealers. M ore important, look at what’s ahead. Your
local Purina salesman can show you a complete business analysis o f a Purina
dealership and the potential it has in your community. Or write D ept. 259,
Ralston Purina Com pany, Checkerboard Square, St. Louis, Missouri.

73
Adolph Erickson is president of the
bank. Capital accounts total $250,000.

M on ta n a

J o in s V a lle y B a n k

NEW S
T. JACOBS
R. C. W A L L A C E

P resident
S e c re ta ry

Doug Remick has joined the Valley
Bank in Kalispell as an assistant cash
ier. Mr. Remick has been with the
Northern State Bank at Thief River
Falls for the past four years.

Missoula
H e len a

E le cts D ir e c to r s
Billings State Bank elected four new

MHaa M on ta n a
F OUR speakers will address each of
the seven group meetings of the
Montana Banke r s Association this
month. The meetings start May 13
and conclude May 22.
Theodore Jacobs, MBA president
and president of First National, Mis
soula, will deliver “A Report on Asso
ciation Activities.”
Robert Wallace, secretary of MBA,
will make a brief report on activities
in the recent legislature.
Phillip J. Hogue, assistant cashier,
First National, Denver, Colo., will
speak on “Computer Service for Cor
respondent Banks.”
E. B. Maynard, vice president, Se
curity Trust & Savings, Billings, will
talk on “A Proposal for a State Ad
vertising Program.”
Dates and locations of the meetings
are as follows:
Group (j—May 13, Whitehall.
Group 5—May 14, Great Falls.
Group 3— May 15, Missoula.
Group 1—May 17, Shelby.
Group 4—May 19, Reserve.
Group 2—May 20, Glendive.
Group 7—May 22, Bozeman.

M oves to N ew H o m e
The Bank of Baker moved into new
quarters last month, according to John
Vucurevich, president. They had been
in the old building since the bank
was established in 1924.
The new building, located on the
banks of Baker Lake, was built at a
cost of approximately $150,000. It fea
tures a night depository window and
extremely modern facilities inside. A
time and temperature sign is an out
standing exterior feature.

P r o m o te d at B illin g s
Milton R. Pietz has been promoted
to cashier of Billings State Bank. Don
R. Wyard, president of the bank, noted
that Mr. Pietz has been with the bank
since 1957 and has served as auditor
since 1964.
The new auditor of the bank is Verland A. Thomas, a native of Moore,
Mont., and a staff member since 1959.

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Federal Reserve Bank of St. Louis

directors
iM iw tin
t/sat a recent stockholders’
meeting. They are Rex Hibbs, Larry

G le iu liv e B a n k e r
R e c u p e r a tin g
Elmer Wuest, vice president and
cashier of the First National Bank,
has recovered nicely from surgery.
He was expected home from the Uni
versity Hospital in Minneapolis early
in April.

A n n o u n c e P ro m o tio n s
George J. Peterson of Fort Benton,
Mont., has been elected a vice presi
dent of The National Bank of South
Dakota, Sioux Falls. He has been
president and a director of First Chou
teau County Bank at Fort Benton.

Karbo, Lee R. Robbins and Frank
Switzer.
Mr. Hibbs is senior partner in a
Billings law firm. Mr. Robbins holds
executive positions with several Bill
ings firms. Mr. Switzer is manager of
the J. C. Penney store in Billings.
Mr. Karbo is a vice president of
the bank and came to Billings in June,
1964, from Watertown, S. D.

In sta llm e n t C red it
C o n fe r e n c e
The Montana Bankers Association
held their Annual Installment Credit
Conference in Great Falls on April
22, 23 and 24.

C h a r te r D e n ie d
Application for a charter for a na
tional bank to be located in East
Helena has been rejected by the
Comptroller of the Currency. Edward
Towe was correspondent for the pro
posed institution.

J. H. M O O R S E

S. E. M c S W E E N E Y

Mr. Peterson has been succeeded
by Joseph H. Moorse, vice president
and cashier. Directors of the Fort
Benton bank also elected Stephen E.
McSweeney cashier to succeed Mr.
Moorse. All changes became effective
last month.

A le x W . R o b e rt
Alex W. Robert passed away sud
denly in Whitehall early last month
following a heart attack.
Mr. Robert was president of the
Whitehall State Bank; Security Bank,
Butte; Bank of Sheridan; Miners and
Merchants Bank, Roundup; and Secu
rity Bank, Three Forks. He was a
50-year member of the Montana Bank
ers Association.

F D IC A p p r o v e d
Federal Deposit Insurance coverage
has been granted to the new Pondera
Bank of Montana, located in Conrad.

N e ar C o m p le tio n
The new home of the Bank of Co
lumbia Falls, constructed at a cost of
more than $140,000, is expected to be
completed later this month. The
chalet-designed structure encompasses
5,708 square feet of floor space.

L. W h ite

H.
L. White, vice president of the
Security Trust and Savings Bank, Bill
ings, and associated with that bank
for 42 years, died April 12.

C h ase B a n k P r o m o tio n
James J. Maher has been promoted
to vice president of the Chase Man
hattan Bank, New York.
A pioneer in the development of
corporate public affairs, Mr. Maher
has headed the bank’s program since
1959. He has also helped scores of
other companies to organize their
own public affairs programs aimed at
motivating their employees to become
active in political affairs.
Northwestern Banker, May, 1965

r '
s

i c

The “blips” and “beeps” of electronic data processing
equipment are music to the ears of Dick Hanley and his
Central associates. They have even programmed their pet IBM

1401 to play “Cornin’ ’Round the Mountain” on the printer.

T-

IBM 1412, M1CR Reader-Sorter: Jim Trimm, Assistant Cashier; Dick Hanley, Vice President; Dean Dearinger, President, North Valley State Bank, Thornton, Colorado.

Banker, May, 1965
Northwestern
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

W hen the tim e co m e s fo r YO UR b a n k to c o n s id e r
ele ctro n ic dem a n d d ep osit a cco u n tin g 1equ ipm en t,
Central w ill be g ia d to sh are w ith y o u o u r
ex ten siv e k n o w le d g e a n d ex p e rie n ce in th is field.

Already, Dick Hanley, Vice President in charg-e
of our Customer Accounting- Section, has helped
correspondent banks throug-hout the West with their
accounting1problems. Call us soon at 303/825-3181.
Ask for Dick Hanley. He’s the man to tell you all
the reasons for “cornin’ ’round the mountain.”
i

B A N K

A N D
<^

T R U S T

O O .

CENTRAL PARK — 15TH AND ARAPAHOE ST., DENVER, COLORADO 80217

1 M e m b e r : Federal

D e p o s it In su ra n c e

C orporation

•

Federal

Reserve

System

C olora d o
H ankers
M a y 2 0 - 2 2 in C olorado
NEW convention format awaits
bankers and their wives attend
ing the Colorado Bankers Association
annual meeting at the Broadmoor Ho
tel in Colorado Springs, May 20-22.
Presiding at the business meetings
will be E. L. Bacon, president of the
Colorado Bankers Association and
president of the United States Bank,
Grand Junction. Other officers, slated

Bacon will deliver his president’s ad
dress and two guest speakers will
make appearances at the Friday meet
ing. Colorado members of the Ameri
can Bankers Association will also
meet this same morning to elect a
member of the ABA nominating com
mittee and an alternate member.
On Saturday morning, three more
guest speakers will address the con
vention. The report of the nominat
ing committee, election of new CBA
officers for the coming year and in
stallation will conclude the program.
Entertainment

E. L. B A C O N

P. L. R I C E

to move up in normal succession at
the convention are: Paul L. Rice, CBA
first vice president, and president of
the First National, Loveland, and Neil
F. Roberts, CBA second vice presi
dent, and president of the Denver
United States National Bank. James
C. Scarboro, Denver, is executive man
ager of the association.
The opening day, Thursday, May
20, will be devoted to golf throughout
the entire day. Registration desk also
will be open all day in the hotel.
Two Business Sessions

On Friday and Saturday, business
sessions will commence at 9:30 a.m.
and adjourn at noon. CBA President

Several popular entertainment fea
tures continue as part of the Colorado
convention. The Past Presidents’ Din
ner will be held Thursday evening,
May 20, at the Garden of the Gods
Club. That same evening, the cocktail
party, buffet supper and dance will be
in the Broadmoor Hotel.
Central Bank and Trust Company,
Denver, will be host to all registrants
at breakfast Friday morning. Ladies
attending the convention are invited
to attend the Ladies’ Luncheon and
entertainment at the Broadmoor Fri
day afternoon. On Friday evening, all
convention registrants again will be
guests of the Denver Clearinghouse at
a cocktail party. This will be fol
lowed by the annual banquet in the
Hall of Flags. After dinner enter
tainment will feature the well-known
TV and stage performer, Liberace.
The convention will adjourn fol
lowing close of the final business ses
sion about noon Saturday.— End.

benefit if branch banking is permitted?
2. Will branch banking provide di
versified banking services at greater
convenience to the people?
3. Does the present unit banking
system adequately serve the needs of
Colorado’s people and industries?
4. Does branch banking result in the
growth of a few giant banks with mo
nopoly powers?
Two states—Illinois and West Vir
ginia—now prohibit all forms of mul
tiple office banking, either through
branching or bank holding companies.
Legislation is presently pending in
Illinois to alter the situation in that
state.
Mr. Adams, president of the Colo
rado Bankers Association at the time
of the 1962 vote against branch bank
ing, favors the proposed legislation.

A ffilia te N ot B ra n c h
Affiliated banks are not branch
banks, according to a ruling handed
down last month by Judge Saul Pinchick in Denver District Court in up
holding the Colorado Bank Board’s ap
proval of a charter for the Guaranty
Bank of Stapleton Airfield.
The suit to block the opening of
the bank had been filed by the Peo
ples Bank of Aurora, the Colfax Na
tional Bank and the Aurora National
Bank. It claimed that approval of
the bank violated Colorado’s existing
anti-branch banking laws.
The court held that, although the
airport bank would be an affiliated
bank of the Guaranty Bank & Trust
Company, Denver, it was a separate
corporate entity.

12 tli C h a rte r R e je c te d

C olora d o's H a n kers Split
On
Ètra neh
Han
HE Business Affairs Committee of
the Colorado House, following a
controversial open hearing, recently
approved a legislative study of the
branch banking controversy which, as
one banker claimed, has “again pitted
the bigs against the littles.”
The hearing, attended by numerous
Colorado bankers, resulted in no agree
ment. In fact, Eugene H. Adams,
president of the First National Bank
of Denver, leader of the proponents in
the branch banking question, noted
that agreement among bankers con
cerning the proposal was “entirely out
of the question. It’s a subject that
only the legislature can decide.”
Max G. Brooks, president and board
chairman of the Central Bank & Trust

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

Company, Denver, headed the group
opposing the legislation.
The bill to allow branch banking in
Colorado (H. B. 1316) was introduced
by Rep. Frank A. Kemp, Jr. (R-Denver). The Colorado Bankers Associa
tion, in 1962, voted 125 to 45 against
asking for branch banking legislation.
State legislators last month were
asked to consider four questions in
determining whether to set up an in
terim committee for purposes of the
branch banking study. The questions
were posed in a letter by Mr. Adams
and Charles A. Baer, senior vice presi
dent and trust officer of the Colorado
National Bank, Denver. The questions
were as follows:
1. Will the economy of Colorado

Organizers of the proposed First
National Bank of Lyons were notified
early last month that their charter
application had been denied by James
.1. Saxon, U. S. Comtproller of the Cur
rency.
Mr. Saxon, confirmed by the U. S.
Senate in February, 1962, approved 35
national bank charters in the state be
tween that time and early September,
1964. Since then, he has turned down
every application for a proposed bank
in Colorado. The Lyons bank rejec
tion was the 12th denial in succession.

N am ed V ic e P r e s id e n t
Wendell H. Martin, president of the
Englewood State Bank, has announced
the election of Cletus A. Gasson as
vice president. Mr. Gasson had been
associated with the Security National
Bank of Denver and the First National
Bank of Englewood.
Northwestern Banker, May, 1965

Wyoming News

Y o u n g e s t P re sid e n t
Roy Gordon, 32, Colorado’s young
est bank president, has resigned as
head of the Cripple Creek First Na
tional Bank to join the staff of the
Academy Boulevard Bank, Colorado
Springs, as executive vice president.
Mr. Gordon will be succeeded at
Cripple Creek by Jack Wells, majority
stockholder of the institution and head
of the Iona, Mo., bank. Mr. Gordon
had headed the Cripple Creek bank
for the past year.

O ffic e r P ro m o te d
Glenn H. Haefliger has been pro
moted from cashier to vice president
and cashier of the First National Bank
of North Glenn.

11 f / o f f f f f i # / i V c i r s

C h e y e n n e B a n k S o ld
A group of southwest banking offi
cials has purchased 93.2 per cent of
the stock of the American National
Bank of Cheyenne. The sale report
edly involved an amount in excess of
$5.5 million.
A spokesman for the purchasing
group, Alan J. Antwell, Hobbs, N. M.,
has announced that no changes are
contemplated in the management of
the bank. He also said that it is the
intention of the purchasers to restore
substantial ownership of the Ameri
can National Bank to residents of
Wyoming.
The First National Bank of Denver
was the principal bank involved in
financing the purchase.

D ir e c to r N am ed
Harlan H. Holben, managing part
ner in Alexander J. Lindsay & Com
pany, certified public accountants in
Denver, has been elected a director of
the American National Bank in Den
ver.

N ew B o ard C h a irm a n
Armin B. Barney, an employee of
the Colorado Springs National Bank
since 1919 and president since 1951,
has been advanced to board chairman
to fill the vacancy created by the death
of W. R. Anderson in 1963.
Promoted from senior vice president
to president was John W. Armstrong,
a member of the bank’s staff since
1934. Moving up from senior vice
president to executive vice president
and cashier was F. Garnet Monck, as
sociated with the bank since 1929.

N ew P u e b lo B a n k
Midtown National Bank, Pueblo’s
newest, has opened for business in
temporary quarters in the Midtown
Shopping Center.
John H. Reid is president of the
new bank, Harry W. Hoth is vice
president, and Charles Highline is
cashier. Edwin K. McMartin serves
as secretary.
A director of the bank is Mrs.
Louise H. Welsh, manager of the shoping center. Mr. Hoth, also a director,
is mayor of Colorado Springs.

B o osts S u r p lu s
The Colorado Springs First Nation
al Bank recently increased its surplus
account by $500,000—from $2 million
to $2.5 million—according to President
H. Chase Stone. It marked the second
time in less than two years that the
bank had transferred $500,000 from
earnings to the surplus account.
Northwestern
Banker, May, 1965
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

R e s ig n a tio n at G le n r o c k
Keith A. Bourn has resigned as pres
ident of the First National Bank of
Glenrock effective April 15. Replac
ing him as president of the bank is
John J. O’Neil, formerly vice president
and cashier of the Farmers and Mer
chants Bank of Comstock, Neb.
Mr. Bourn stated that he is unable
to announce his future plans, but an
announcement would be forthcoming
from the bank with which he will be
associated.

3m
i0in m on d d im 33
NE of the most unusual displays
prepared for a bank anniversary
celebration has been designed and ex
ecuted for the First National Bank of
Rawlins. It is a “ Million Carat Dia
mond,” referred to as Diamond Jim
since it was made for “Jim” Ivins,
president of the bank, to promote the
First National’s Diamond Jubilee.
The mirror work on the display
piece was done by “Jim” Shultz of
Maberry’s Glass Shop, and the dia
mond itself was crafted by “Jim”
Alexander, an inmate in the Wyom
ing State Penitentiary, who spent con
siderable time on the project. The
three men’s surnames gave rise to the
title, “Diamond Jim.”
The diamond has 31 facets cut from
mirrors that slide into stainless steel
frames. Nearly 200 man hours went
into making the diamond. It is 4 feet
8 inches high and 4 feet in diameter.
Mounted on a pedestal, it makes one
revolution every minute and 55 sec
onds, powered by a small electric
motor concealed in its base.
The idea for the unusual diamond
jubilee display piece was by LeVell
Jones, First National’s public rela
tions officer, who is handling the 75th
anniversary promotion.

V E W IN G “ Diamond Jim” showpiece of
the bank’s 75th anniversary celebration,
are J. R. Ivins (right), pres., and Geo.
Hutt, exec, v.p.

Other promotions the bank is plan
ning for the anniversary are: open
house birthday party, May 26, com
plete with 1,890 costumes for all bank
employees, along with a reenactment
of the delivery of the bank’s national
charter via Pony Express, May 29.

A p p lic a tio n s R e je c te d
Two applications for charters for
national banks in Cheyenne have been
turned down by the Comptroller of
the Currency. The applications were
for the North Cheyenne National Bank
and the Central National Bank of
Cheyenne.

P u rch a se s T w o B u ild in g s
R. Sam Allen, president of the Sho
shone-First National Bank of Cody has
announced the purchase of two build
ings, one adjoining the current bank
property. The building on the ad
joining property will be razed as are
buildings on other adjoining property
which was purchased by the bank
some time ago. No further plans have
been announced by the bank.

S tart N ew B u ild in g
Demolition of present buildings has
started as the Stock Growers Bank of
Wheatland prepares plans for a new
building. Present plans call for com
pletion and occupancy by September.

Th #
*#
/ II71#A H en d
i olm uulo M e e t inti
T HE following metropolitan bank
ers, service and equipment firms
have indicated they will be attending
the Colorado Bankers Association’s an
nual convention in Colorado Springs,
May 20-23.
Chicago
American National Bank & Trust
Company: W. O. Kurtz Jr., vice presi
dent; W. B. Aldrich, assistant vice

president, and C. C. Kuning, con
sultant.
&

Continental Illinois National Bank
Trust Company: C. R. Hall and

W. E. Resseguie, vice presidents.
First National Bank: William T.
Dwyer and Ernest J. Hultgren, vice
presidents; and Frank G. Herman,
assistant vice president.
Harris Trust & Savings Bank: Ed
ward K. Banker, assistant vice presi
dent.
Denver
Central Bank & Trust

Company:

Max G. Brooks, chairman of the board;
A. Asborno, senior vice president;
Arthur G. Bridgewater, vice presi
dent; and George V. Janzen, assistant
vice president.
Colorado National Bank: James J.
Durkin, senior vice president; Eugene
Hultman, vice president; and John L.
Guyer, assistant cashier.
Denver United States N a tio n a l
Bank: Ray Harper, George Alff, Don

Ferrel, and Kent Olin, vice presidents;
and Fred Flanders.
First National Bank: Eugene H.
Adams, president; Carroll L. Stubbs
and William R. Alexander, senior vice
presidents; and Bruce O. Alexander,
James R. Morris, J. Rodney Uhrich
and Thomas W. Hanlon, vice presi
dents.

Kansas City
City National Bank & Trust Com
pany: Charles G. Young, Jr., president;

Richard F. Dundore, assistant vice
president.

Dale R. Ainsworth, executive vice
president; John J. Kramer and Roy
Thompson, vice presidents.
Commerce Trust Company: James
M. Kemper, Jr., president; Carl A.
Charlson, senior vice president; B. M.
Lamberson, James Bartels and John
Fowler, vice presidents.

Don R.
Ostrand and Carl N. Bloom, vice
presidents; and Mervin F. Aegerter,
assistant vice president.
First

Omaha
N a t i o n a l Ba n k :

The Omaha National Bank:

Dave

Johnson and Fred Douglas, vice presi
dents.
Phoenix
Valley National Bank: Max Morris,

Lincoln
First National Bank: Olney D. New

assistant vice president.

man, senior vice president.

First

First National Bank & Trust Com
pany: A. S. “ Chico” Chaves and Lyle

St. Louis
National Bank:

Leonard J.

Schrewe, vice president.
San Francisco
Bank of America: H. O. Evanson,

F. Stoneman, vice presidents.
National Bank of Commerce Trust
and Savings Association:

vice president.
Bank of California: Irving W . Dan

Los Angeles
Security-First National Bank: Duane

ielson, vice president.
W ells Fargo Bank:

J. Pittsford, vice president, and Joe
W. Bennett, assistant vice president.

Wood Wilkin

son, vice president.
Bank Equipment and Other Firms
Bankers Service Company: Myron

New York
Chase Manhattan Bank: William M.

E. Karsten, executive vice president,
Des Moines.
George LaMonte & Son: Robert P.
O’Connor, sales representative, Chi
cago.

Ellis, vice president.
Chemical Bank New York Trust
Company: E. R. Bucklin, vice presi
dent.
Irving Trust Company: David K.

National Fidelity Life Insurance
Company: Merlin H. Menk, Jerry A.

Darcy, vice president, and William F.
Klausing, assistant secretary.

Steffen, Richard K. Welle and John
M. Fisk.

Morgan Guaranty Trust Company:

You Can Always Get Through
...to the MAN at The FIRST!
That's a member of The First's Correspondent
Bank Department, holding a winning hand.
He's a man on the go.
He and his associates in the department keep on
the move to provide the utmost in correspondent
banking services.
M ay they deal you in?
You can alw ays get through to the M AN at The
FIRST!
He seeks to be the best in banking.
Otherwise, he wouldn't be at The FIRST.
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Federal Reserve Bank of St. Louis

17TH AND WELTON - TELEPHONE 266-2211

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

Northwestern Banker, May, 1965

You’re known by U.S....

... and we’re looking
forward to seeing you
at the convention
... but when y ou ’re traveling outside
Nebraska, there are those who may
not know you. Y ou ’ll find it easy to
establish your identity with the per
m anent identification card made for
you as a gift when you visit the U .S.
N ational’s hospitality suite during
the N ebraska B anker’s Convention.
Plan to stop in for a visit.

Northwestern Banker, May, Ï965

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

N eb ra sk a H an kers A sso cia tio n
H

t h

t t u

t a

t i

o n

e n

t i o n

S h e r a t o n - F o n t e n e l l e H o tel» O m a h a
A ta y 2 - 1 . ifili-l
N. T . T I E M A N N

H. E. L E Y

EBRASKA bankers will meet at the Sheraton-Fontenelle Hotel in Omaha
Sunday, Monday and Tuesday, May 2, 3 and 4, for the 68th annual con
vention of the Nebraska Bankers Association.
Although preliminaries commence Sunday, the formal program will begin
with the luncheon session Monday noon.
Presiding throughout the convention will be N. T. Tiemann, president of the
Nebraska Bankers Association and president of the Commercial State Bank,
Wausa. Serving throughout the year with Mr. Tiemann have been Vice
President W. W. Cook, Sr., president of The Beatrice National Bank and Trust
Company, Beatrice, and Treasurer E. T. Tanner, vice president of the First
National Bank, Omaha. H. V. Osterberg is executive vice president of the
NBA and W. H. Osterberg is secretary of the association.
The convention program, which follows, includes a fine slate of nationallyknown speakers and personalities.

SUNDAY, MAY 2

E. T. T A N N E R

P.M.
2:00 Registration—Mezzanine. (Register Sunday until 9 p.m.)
3:00 Executive Council Meeting—Regal Room.
5:30 Social Hour—Sheraton North, wives of Executive Council and Past
Presidents.
6:30 Executive Council Dinner—Regal Room.
Past Presidents’ Dinner—Parlors B and C.
Dinner—Sheration North, wives of Executive Council and Past Presi
dents.

J. T . C O N N

MONDAY, M AY 3

H. V. O S T E R B E R G

W . H. O S T E R B E R G

A.M.
9:00 Registration—Mezzanine.
12:00 Luncheon Session—Ballroom.
Presiding—N. T. Tiemann, president, Nebraska Bankers Association,
Inc., and president, Commercial State Bank, Wausa.
Invocation—Rev. Robert S. Alward, minister, Countryside Community
Church, Omaha.
Welcome—J. A. Irving, president, Omaha Bankers Association, and presi
dent, First West Side Bank of Omaha.
Response and President’s Address—N. T. Tiemann.
“Your Department of Banking”—Henry E. Ley, director of banking, State
of Nebraska, Lincoln.
“Federal Legislation in This Session of the Congress”—Jack T. Conn,
chairman, American Bankers Association Federal Legislative Commit
tee and chairman of the board, Fidelity National Bank and Trust Com
pany, Oklahoma City, Okla.
“ Like It Or Not—When Washington Sneezes, You Can Catch Cold”—
Hollis W. Burt, executive vice president, National Association of Super
visors of State Banks, Washington, D. C.
Business Session—Report of Committee on Nominations.
Election of officers.
Report of Committee on Resolutions.
P.M.
5:30 Social Hour—Ballroom, Delegates and Ladies. Hosts, Omaha banks.
7:00 Convention Banquet—Omaha Civic Auditorium. 18th and Capitol.
Installation of officers.
“An Evening With Hans Conried”—Nationally-known radio, television
and stage personality.

R. H. K N A P P

O. H. S W A Y Z E

TUESDAY, MAY 4

A.M.
7:30
H. G R A M A N N , JR.

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

Breakfast—Forum Room, The Graduate School of Banking, University
of Wisconsin, Graduates and Students.

H. W. B U R T

Northwestern Banker, May, 1965

N ebraska

News

GROSS-FEI BEL

Bank Building
Check List

9:30 Convention Session—Ballroom.
Presiding—N. T. Tiemann, president, Nebraska Bankers Association, Inc.
Election—American Bankers Association.
Presiding—Harold Qualsett, A.B.A. state vice president and president,
Farmers and Merchants Bank, Schuyler.
“The Nebraska Legislative Scene”-—Henry Gramann, Jr., chairman,
N.B.A. Committee on legislation and vice president, Adams State Bank,
Adams.
“The University in an Age of Anxiety”—Dr. Royce H. Knapp, regents
professor of education, University of Nebraska, Lincoln.
“What It Takes to Build Good Public Relations”-—Orrin H. Swayze, exec
utive vice president, First National Bank, Jackson, Miss.
12:30 Buffet Luncheon—Ballroom, Delegates and Ladies.
Ladies’ Program
MONDAY, M AY 3

P.M.
1:00 Ladies’ Luncheon—Ballroom, Diplomat Inn, 1511 Farnam Street.
5:30 Social Hour—Ballroom, Sheraton-Fontenelle Hotel.
7:00 Convention Banquet—Omaha Civic Auditorium.

TUESDAY, MAY 4
□

VAULT DOORS — A com plete range of
sizes, finishes and architrave designs.

P.M.
12:30

Buffet Luncheon—Ballroom, Delegates and Ladies.— End.
h

C onvention
C a le n d a r

DRIVE-UP WINDOWS — Flush and bay
designs w ith service equipm ent to
meet any requirem ent.

HANS C O N R IED

SAFE DEPOSIT BOXES — Standard or
custom units to f it any size space.

A top-notch actor, known to millions for
his dramatic ability in stage, radio and
TV roles, as well as for his delightfully
deft touch with comedy, will be the fea
tured entertainer at the annual banquet of
the Nebraska Bankers Association con
vention in Omaha, May 3.

May 2-4 State C o n v e n tio n —
Sheraton-Fontenelle H otel,
Omaha.
May 11 Uniform Code Confer
ence—Group 1, Lincoln.
May 12 Uniform Code Confer
ence—Group 2, Fremont.
May 13 Uniform Code Confer
ence—Group 3, Norfolk.
May 18 Uniform Code Confer
ence—Group 6, Alliance.
May 19 Uniform Code Confer
ence—Group 5, Kearney.
May 20 Uniform Code Confer
ence—Group 4, Holdrege.
June 8-11 Annual Bank Man
agement Conference—Doane
College, Crete.
August — N.B.A. Agriculture
Committee Display—Nebras
ka State Fair.
October—Group Meetings.

S a n k cA A
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Northwestern
Banker, May, 1965

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

O m aha

J O I N T H E B I G R O U N D -U P
During the Convention-May 3rd and 4th
W e ’ ll he lo o k in g f o r y o u at th e L i v e s t o c k E x
ch a n g e o r 2 4 th an d L S tre ets . . . o r d ro p in at
o u r h o s p ita lity su ite at th e S h e ra to n -F o n te n e lle .
A . J. H A L L A S

Chairman of the Board
D.

J. M U R P H Y

President

G LENN E. BURRUS

Vice President
C. A .

M A S IL K O

Vice President

Asst. Vice President
A. R . L A R S E N

Asst. Vice President
E.

.1. P R O B A S C O

Asst. Vice President
F.

J. SI B E R T

Asst. Vice President
I). E . T H O M P S O N

C. YV. M E A N S

Asst. Vice President

Vice President

V . II. H O E L T IN G

R A Y F . S L IZ E W S K I

Vice President
R. A. P R O H A SK A

Asst. Vice President & Cashier
D. L . B A U G H

Asst. Cashier
JO SE P H A. M ANKOLFO

Asst. Cashier
P A U L A. M AUER

Asst. Cashier

Asst. Vice President

J. D . P H I L P O T T

J. P . C A R L S O N

F . J. R E Z A K

Asst. Vice President
W IL L IA M

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Federal Reserve Bank of St. Louis

R IC H A R D E. K U R T Z

S. G R A V E S

Asst. Vice President
R . !.. H A N N O N

Asst. Vice President

Asst. Cashier
Asst. Cashier
MTSS W A N D A

B. Y O S IK

SOUTH OMAHA
-STOCKYARDS
N A T IO N A L

BAN K

Asst. Cashier
A. F . D R A K E

Auditor
Mem ber Federal Deposit Insurance Corporation

Northwestern Banker, May, 1965

T a meeting of the board of direc
tors of the Stock Yards National
Bank and The South Omaha bank
held last month, final plans for a mer
ger of the two institutions were an
nounced. The merger approved by
the directors of both banks in Decem
ber and by the Comptroller of the
Currency in March, took effect at the
start of business Thursday, April 8.
A. J. Hal las, formerly president of
the Stock Yards National Bank, was
elected chairman of the board and
D. J. Murphy, formerly executive vice
president, was named president of the
merged bank.
The new bank was renamed South
Omaha Stockyards National Bank. It
is an affiliate of Northwest Bancorporation.
The following day, it was an
nounced by Milton S. Livingston, one
of the organizers and chairman of the
board of directors of The Center
Bank, that all of the bank’s officers

Northwestern
Banker, May, 1965
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

and directors had been elected to
similar positions in the South Omaha
Bank.

A. J. H A L L A S

D .J. M U RPH Y

Subsequently, the name of the sur
viving bank was changed to Center
Bank. The bank will continue at its
only location in The Center, at 4131
Center Street.
W . B. Hargleroad, Jr., president of
the bank since its founding nine years
ago, retired due to illness and was
named an honorary member of the

board. Ray E. Stanley was elected
president of the bank succeeding Mr.
Hargleroad. Mr. Stanley had been ex
ecutive vice president since the bank
opened in 1956.
David E. Beber, a director and at
torney for the bank since its opening,
was named vice president and general
counsel of Center Bank.
All additional personnel originally
associated with The Center Bank will
be retained and will continue to serve
Center Bank in their same capacities,
according to the announcement.
In addition to
Mr. Stanley, Mr.
Beber a n d Mr.
Livingston,
Charles W. Dur
ham is a director

of the bank. The
bank’s
deposits
at the close of
business Decem
ber 31, 1964, to
taled more than
R. E. S T A N L E Y
$17.4 million.
Joseph F. Ringland, who has been
president of The South Omaha Bank,
will leave Omaha to become president
of Union Investment Company, Minneaplois, an insurance affiliate of the
Northwest Bancorporation.
Directors of South Omaha Stockyards National Bank, in addition to
Mr. Hallas and Mr. Murphy, are
F. E. Borchers, Gerald Collins, J. I).
Eustice, Henry Greenberg, J. G. MeGarraugh, John P. Mainelli, J. B.
Moore, E. M. Morsman, H. P. Smith
and R. W . Walker.

Mr. Murphy announced that the
capital stock of the new bank was to
be increased from $500,00 to $900,000
through the sale of additional stock.
He said that personnel of both banks
would be retained.
* * *
State Banking Director Henry E.
Ley has announced that applications
for charters for the Rockbrook Bank
of Omaha and the Bank of Nebraska
Bank, Omaha, have been denied.
* * *
Open house was held recently at
the newly-completed and just-opened
Indian Hills Bank at 78th and Dodge
Streets. John J. Hanley, Omaha at
torney, is chairman of the board of
the new bank and William R. Farris
is the bank’s president.
* * *
Stan Vala is executive vice presi
dent, Lou Narke is cashier and Janies
Roberts is assistant cashier and oper
ation officer for the new institution.
OMAHA N EW S . . .

(Turn to page 96, please)

Can a banker find
happiness in the j
West Room?

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Federal Reserve Bank of St. Louis

W ill c o n v iv ia lity triu m p h ?
W ill c o n fa b u la tio n re ig n ?
S hop t a lk muddle thro ug h ?
Be on hand M ay 2 th ro u g h 4-,
Nebraska Bankers' Convention
a t t h e S h e ra to n -F o n te n e lle
while we m ake a su p re m e ef
f o r t in t h e W est
Room t o e lic it a V C f I
u n a n im o u s a n d
J
•
h e a r t- w a r m in g ...!__________
THE OMAHA NATIONAL BANK

N ebraska

News

In Nebraska
D

i r e

r i f i c a

t i o

A NORTHW ESTERN

i s
B A N K E R In terv iew

with H E N R Y E . L E Y

Can Direct Verification be made to work on a state-wide
basis?
Nebraska's Director of Banking, Henry E. Ley, has proven
that it can. It was the first new program he undertook when
he assumed this post in February, 1964.
Nebraska is the first state to institute such a procedure
by supervisory authorities. Numerous bankers and super
visory officials from all over the United States have inquired
about this program. For answers to the questions most fre
quently asked, the NORTHWESTERN BANKER made arrange
ments with Mr. Ley for this personal interview.

Q. W hy haven’t more banks used
Q.
Mr. Ley, what kind of Direct
outside audits and Direct VertificaVerification does your examining staff
tion?
carry out during their examinations of
state banks in Nebraska?
A. Principally, for two reasons:
A. Our Direct Verification program
1. The expense involved.

takes in both deposits and loans for
each bank examined.
Q. What prompted you to initiate
the Direct Verification program in the
Nebraska Banking Department?
A. In our own bank, State National

Bank of Wayne (Neb.), we had used
Direct Verification for about 10 years.
This was done annually by a certified
public accounting firm as part of an
annual audit we had them do for our
bank. We felt this was well accepted
by our customers, as well as the di
rectors and staff.
Q. Then you had some first-hand
experience, Mr. key, with Direct Veri
fication. How did this help you in
your assignment as Director of Bank
ing?
A. It appeared to me that if this

was good supervision by directors of
a specific bank, it would certainly im
prove the supervision of the state
banking department.
Q. How many banks in Nebraska
would you estimate have been using
Direct Verification of their accounts?
A. Probably about 15 per cent of all
banks in the state—both national and
state banks.
Northwestern Banker, May, 1965

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

2. Many bankers are afraid of public
reaction to the Direct Verification let
ters.
Q. With this background, Mr. Ley,
how did you approach Nebraska state
banks to tell them of your plans?
A. After it was determined that we
would definitely put this program into
action, we mailed a letter to every
state bank in Nebraska explaining our
intentions.
This was followed up July 27, 1964,
with a second letter informing them
the effective date of initiation of the
Direct Verification program would be
August 1. With this letter we enclosed
a suggested news release that might
be used by the bank to pass along to
the newspaper editors in the bank’s
trade area. This news release ex
plained the new step in the banking
department’s examination procedure
and assured the public this was a nor
mal part of good business practice to
day. The individual bank could use
this release or not, as they wished.
It could be released at the time the
Direct Verification program started, or
it could be held at the bank and then
given the editors whenever the state

bank examiners entered the bank so
it would be timely. If the banker
wished, he could put such a news re
lease in his own words. Our prepared
news release was only a suggested one
designed to be of help to the banks.
Q. Who did you discuss this pro
gram with ahead of time before you
made up your mind to carry it out?
A. It was discussed with Governor
Morrison when the job as Director of
Banking was offered to me and he ap
proved of the plan. I discussed it
also with the Nebraska Bankers Asso
ciation to acquaint them with it and
gain their approval and cooperation,
which they gave to me. Naturally, I
discussed it with my own staff. Every
reaction was favorable, so we pro
ceeded with our plans.
Q. What extra training or instruc
tion did you have to give your exam
iners before putting Direct Verifica
tion into effect?
A. Direct Verification is fairly sim
ple. Its success depends on accuracy
of the information supplied for veri
fication. We had two seminars on this
for all our examiners. Incidentally,
we have them all in every 90 days. At
these two sessions, Direct Verification
instruction was the principal subject.
These included some talks by CPA’s
as well as our own instructions.
Q. What is the procedure in seating

ns
The second you call the First, we’U have a man on the -em to see you.

Don Ostrand, V .P ., Bob Brown, A sst. V .P ., M erv Aegerter, A sst. V .P ., Carl Bloom, V .P .
W here is Ralph Peterson?

O ut working!

W e’ll charter a plane, if necessary, to get him there
fast. H e’ll m eet you at your airport, ready to serve
you w ith loans, securities, transit and collection
services, trusts, credit inform ation, operational
services or whatever. So call. A n y tim e. A nd tim e us.

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

Always the First to Serve you.

F IR S T

* N A T IO N A L
8 BAN K
OF OM AHA
n

| | | | Member Federal Deposit Insurance Corporation

Northwestern Banker, May, 1965

N ebraska

News

lip Direct Verification for each bank?
A . First, we have the itinerary of
all our 'examiners.
Second, we p re p a re verification
cards for hank customers with the
name of each bank imprinted prior to
the bank examination. We have suf
ficient information in our office from
past examinations to know how many
cards to prepare. This card is a stock
item and we imprint the name of the
individual bank in our own office.
These cards are forwarded to the sen
ior examiner in charge of the exam
ining job. These cards are then filled
in during the first part of the exami
nation, using the information showing
on bank records. The senior examiner
puts the cards back in the same box
and mails them to Lincoln. Then we

Form 17-7-1-64 25M

2290

REQUEST FOR CONFIRMATION OF LOANS AND DISCOUNTS

A routine examination of the above bank shows your indebtedness to it in the amount of
on.............................
Accordingly, will you please sign and return this confirmation, in the enclosed envelope, confirming the correctness of
our records or if exceptions exist detail the exceptions on the back of this form.

YOUR PROMPT ATTENTION WILL BE
APPRECIATED.

(A u th o r iz e d S ig n a tu r e )

Sample loan verification notice.

Form 16-7-1-64 25M

In connection with a routine examination, the Department of Banking is sending you a Statement of your account in
the above bank. It will be appreciated if, after reconciling the Statement with your records, you will notify this De
partment promptly in the event of any discrepancy by showing difference, if any, on the back of this form and return
it to the Department of Banking, State Capitol, Lincoln, Nebraska. You may have other accounts which were not
selected for confirmation at this time.
Unless we hear from you to the contrary within 15 days, the account will be considered correct.

NO REPLY IS EXPECTED UNLESS A DISCREPANCY EXISTS.

Sample deposit verifiication notice.

mail them from the state capitol di
rectly to the customer with a reply
envelope enclosed.
Q. What kind of information do you
request on this card from the custom
er?

Our years o f correspondent
experience and specialized

A . There are two kinds of cards.
The one relating to deposits requests
an answer if the figure shown on the
card does not coincide with the figure
on the customer’s statement, which is
enclosed. This statement is one pulled
from the bank records as of the date
of examination. If the customer feels
this does not reflect what he thinks

he has on deposit, then he can send
the card directly to our department in
Lincoln with his or her report on the
back. We call this “negative” verifi
cation since cards are requested to be
returned only if they do not coincide
with records from the bank.
The other card relates to loans. A
statement of the customer’s total debt
to the bank on the date of examination
is entered on the card. The customer
is asked to verify the correctness of
the amount over his or her own sig
nature, or advise us of any difference.
This is called “positive” verification,

know ledge o f livestock

Convention Bound!

m arketing and financing can

Mr. Doug Johnson, National Fidelity’s credit
life representative in Nebraska, will be in

work for you.

Omaha May 3-4 for the Nebraska Bankers

The only bank in the yards.

annual convention. Ask Doug to explain bow
our flexible and comprehensive credit life

FIRST STOCK
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S OUT H ST. JOSEPH, MO.
MEMB E R

F. D. I. C.

Northwestern
Banker, May, 1965
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

IN S U R A N C E C O M P A N Y

K A N S A S C I T Y 6, M O .

4
O R C H ID S . . . for ladies attending
the Nebraska Banking Convention
. . . are one of the little "extras"
we enjoy performing at Schwesers.

ANNOUNCING AN ADDITIONAL

CORPO RATE DEPARTMENT

In addition to tax exempt service, the Schweser
Company is adding a Corporate Securities depart
ment for the convenience of our customers.
The new staff is a team well known and respected
in this area and has a cumulative experience of more
than 30 years in Corporate Securities.

H a r o ld H u ltm a n

J a c k Petersen

Le e W illia m s

M U N IC IP A L DEPARTMENT

L. L. L a w re n ce
P resid en t

P a trick H . Rensch
V ic e P resid en t
& C o u n se l

Fra n k E . W illia m s
E x e cu tiv e V .P.

W illia m M arch
V ic e P re sid e n t

H arry E. C o e

R o b e rt E. Roh

C h a r le s W . Poore

I
R O B ER T E.

y
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Federal Reserve Bank of St. Louis

S C H W E S E R CO.
IN V E S T M E N T BANKERS

•

U N DERW RITERS O F M U N IC IP A L & CO RPORATE

209 South 19th S tr e e t, O m aha, Nebraska

A lbuq uerque, N e w M exico

SECURITIES

V e n tu ra , C a lifo rn ia

Northwestern Banker, May, 1965

N ebraska

News

since a reply is requested from every
person.
Q. What has been the attitude of
bankers since the program has start
ed?
A. It has been excellent throughout

the state. We have enjoyed the whole
hearted cooperation of most bankers
because they see the same benefits ac
cruing to the customer and to the
bank as I did in Wayne and again
here in Lincoln as Director of Bank
ing for all state banks.
Q. What has been the experience
from these Direct Verification exami
nations?
A. In practically all cases any cards

returned to us showing a difference
in the customer’s total as compared
to the bank’s record have been honest
differences of opinion. I might add
that in almost every case the cus
tomer wrote to us in Lincoln or told

us that after checking further he
found the “lost” entry and things were
in balance.

used regularly cannot only uncover
irregularities but could well be a de
terrent.

Q. Has any major difference been
disclosed, Mr. Ley?
A. Yes, there has. As you know,

Q. Now all of this is carried out,
Mr. Ley, on the assumption that the
bank being examined does not have a
full-time auditing service or work
done by an outside CPA firm. What
do you do when such conditions do
prevail in a bank?
A. If any bank is employing a CPA

shortly after we began this program
of Direct Verification our examiners
did a routine job at the Nebraska
State Bank in Valentine. Some ques
tionable matters came up about the
same time the first Direct Verification
reactions were noted. Some people
were calling the bank regarding the
cards they had received. Our exam
iners pursued this at once and then,
as you know, the “roof fell in” when
it was finally determined that the
president of the bank was hopelessly
involved in an embezzlement that
eventually was determined to be near
ly $3% million. So, in this case, it was
shown that Direct Verification when

firm or an auditing firm licensed by
Nebraska, then these banks need not
have the semiannual directors’ exami
nation and are not subject to provi
sions of the new Direct Verification
program. If we can determine that a
bank is doing for itself and its cus
tomers what we are trying to achieve
with this program, then we recognize
this by conducting only our usual
bank examination. We do not wish to
add unnecessarily to the expense of
any bank.
Q. Who pays for the cost of this
additional Direct Verification?
A. It is included as part of the reg

ular bank examination charge, which
the bank pays.

IN THE MIDWES

Q. Well, if the bank has to pay for
this anyway, Mr. Ley, why haven’t
more banks had this work performed
by outside auditing firms, and what
was the reaction by accountants to
your new program?
A. As I mentioned earlier, many

K i r k P a t r ic k - P e t t is

bankers who might have considered
an outside audit and verification plan
did not pursue it because they felt it
was too costly and because they were
hesitant about the kind of reaction
that might be received from custom
ers. There has always been a ques
tion in the minds of auditors and su
pervisors as well as to just where ex
aminations of institutions stops and
auditing begins. There has also been
a question as to whether supervision
should enter into the field of auditing
in any way.
However, those of us who have the

ANY
d Distributors
Corporffe and Municipal
drities
ember of Midwest Stock Exchange
L IN C O L N

O FFICE

First N ation al Bank Bldg.
Lincoln, N eb r.

540 O m aha N atio n al Bank Bldg.
O m aha 2, N ebraska
Telephone 344-4900
Teletyp e 402-348-1 108

RED O AK O FFICE

212 C o olb aug h St., Red O ak, Iowa
M id w ay

KEARNEY

O FFICE

H o tel,

Kearney,

N eb r.

A page from FIRST NATIONAL’S coloring book for BANKERS
T H E F IR S T N A T IO N A L B A N K

(Color it Rosy)
I t ’s the bright spot in S t. Joseph for anyone looking
for a congenial group with w hom to do correspond
ent and agricultural business.

T H E

F IR S T

Northwestern
Banker, May, 1965
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

N A T IO N A L

Phone'. 816 AD 4-2724

B A N K

4th & Felix, St. Joseph, Mo.
member federal deposit insurance corporation

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

From the Desk of:
D IC K

T A Y L O R

Vice President

Northwestern Banker,

N ebraska

News

office in our individual states as direc
tor of banking must ask ourselves,
“What is the extent of our responsi
bility in an examination? What is
the extent of our obligation to the
public?”
I felt it was time the traditional ex
amination was expanded to embrace
the auditing procedure because for
years it had been identified with the
bank examination in the mind of the
public. The public felt we were fore
going our responsibility, we reasoned,
if auditing was not done.
Now if any bank takes upon itself
the responsibility of a regular auditing
program then, as we have mentioned
before, this bank is complying with
the intent of our program by employ
ing its own auditing services and we

will not carry on the Direct Verifica
tion program in that bank.
Our program has been well ac
cepted and in the state banks not using
outside auditing firms we will make
Direct Verification a regular part of
our bank examinations.
To start this program, we have been
verifying 10 to 15 per cent of the
banks’ customer accounts. We will
increase this to 20 to 25 per cent on
August 1, 1965, which is the percent
age recommended by firms conduct
ing a usual verification program. This
increase is part of the program as
originally set up. From the accept
ance we have had to date, we antici
pate continued success for this Direct
-unification program.—End.

C o zad B a n k M oves
The Cozad State Bank moved into
its new bank building and opened for
business there April 22, according to
W. E. Young, president.
Open house was held at the new
bank, which features a drive-in teller
window, April 22, 23 and 24.
Special letters explaining the mov
ing schedule and requesting customer
cooperation were mailed to depositors
well in advance of the move. A letter
explaining the drive-in window was
also circulated prior to the move.

E c o n o m ic F o ru m s
Information on recent developments
in the state and national economy
were presented to Nebraska bankers
at a series of six economic forums in
the state late last month. Sponsored
by the Federal Reserve Bank of Kan
sas City in conjunction with the Ne
braska Bankers Association, the for
ums were held in Norfolk, Omaha,
Scottsbluff, North Platte, Grand Is
land and Lincoln.

T o I llin o is B a n k

John Van H orne

Edwin Van Horne

M ichael Van Horne

James W. Busskohl has been named
assistant cashier and manager of the
bookkeeping department at the De
Kalb Trust and Savings Bank, De
Kalb, 111. Mr. Busskohl is a native of
Bloomfield, Nebr., and was associated
with the Crofton State Bank, Crofton,
prior to joining the Washington
County Bank and, later, the Nebraska
Department of Banking.

T o p s in B o n d s
Nebraska climbed to number one in
the nation in the percentage of 1965
goals made through February in sales
of U. S. Savings Bonds.

N a m ed A d v is o r

Bill Beavers

H arold Ebner

Ja c k Nellson

C O M E IN FOR FREE BONDS . . .
Suite I 137-39

NBA— May 2 , 3 & 4

Representative Clair Callan has an
nounced the appointment of Harold
Dietemeyer, president of the First
National Bank in Beatrice, to a Busi
ness and Industry Advisory commit
tee to provide the legislator with
advice and counsel on problems fac
ing industry in Nebraska.

T o W y o m in g B a n k
John O’Neill has resigned as vice
president and manager of the Farm
ers and Merchants Bank at Comstock
to accept a position as president of the
First National Bank of Glenrock,
Wyo.

L. R o w e G ille tt

Over a Half-Century of Bankers Conventions and Group Meetings
Northwestern
Banker, May, 1965
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

L.
Rowe Gillett, chairman of the
board of directors for the National
Bank of Norfolk, died recently at the
age of 70. His widow survives.

W e look forward
to seeing you

It's not too
early to plan
to attend the
NBA convention

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

in Omaha
May 2, 3, 4

5B |S
■ W ;P

NATIONAL

BANKofCOMMERCE
M E M B E R : F. D. I. C-

TR U ST & SAVIN GS

LINCOLN. NEBRASKA

Northwestern Banker, May, 1965

N ebraska

News

You
W ill
S ee Them at th e
A n n u a l N ebra sh a C onvention
T HE following metropolitan bank

Denver United
States
National
Bank: George Alff, vice president, and

Chicago

First National Bank: Royce B. Clark,
assistant vice president.

president; W. B. Aldrich, assistant vice
president; W. D. Milligan, assistant
cashier; G. H. Spence, agricultural offi
cer; and C. C. Kuning, consultant.
Continental Illinois National Bank
& Trust Company: Charles R. Hall,

vice president.
First National Bank: Victor C. von
Meding, vice president; Nevin G.
Bowser, assistant vice president; Ben
nett L. Hauenstein, assistant vice pres
ident; and Raymond V. Dieball, assistassistant cashier.
Northern Trust Company: Robert P.
Kline, vice president, and John N.
Fix, divisional assistant.
Denver
Central Bank & Trust Company:

George V. Janzen, assistant vice pres
ident.

Myron Weil, executive vice president;
Herman Brockmeier, Gene C. Eaton,
Robert A. Wekesser and John C.
Whitten, senior vice presidents; Rex
E. Miller, Winton Buckley and T. J.
Waldo, vice presidents.

Colorado National Bank: William J.

ers, service equipment dealers have
indicated they will be attending the
Nebraska Bankers Association’s 68th
annual convention in Omaha, May 3-4.
American National Bank & Trust
Company: A. E. Lindquist, Jr., vice

National Bank of Commerce Trust
and Savings: Glenn Yaussi, president;

Fleming, assistant cashier.

Los Angeles
Security-First National Bank: James

Fred Flanders.

C. Barrett, Jr., vice president.

Kansas City
City National Bank & Trust Com
pany: Dale R. Ainsworth, executive

New York
Manhattan Bank:

John S.
Hejinian and Everett B. Kennedy, as
sistant vice presidents.
First National City Bank: Dan C. deMenocal, vice president, and Robert
W. Thom, assistant cashier.
Irving Trust Company: Donald A.
Stephen, assistant secretary.
Chase

vice president; John J. Kramer, vice
president, and George W. Sherman,
assistant vice president.
Commerce Trust Company: Richard
L. Dunlap, and Tom C. Cannon, vice
presidents; and Robert N. Stewart,
assistant cashier.
First National Bank: Arden Bruch
and George C. Dudley, vice presidents.

Manufacturers Hanover Trust Com
pany: Carl Carlson, assistant vice

presidetn.
United States Check Book Compa
ny: Fred E. Pfaff, vice president;
Morgan Guaranty Trust Company:

Lincoln
First National Bank & Trust Com
pany: Burnham Yates, president; W.

David W. Brillhart, vice president.

E. Nolte, executive vice president;
A. S. Chaves, R. L. Cunningham, D. M.
Shoemaker, Lyle E. Stoneman and
Clifford G. Weston, vice presidents;
Lester Curran and Allen Norris, as
sistant vice presidents and ag reps;
and Robert L. Horn, ag rep.

St. Joseph
American National Bank:

Gilbert
Tootle, senior vice president; Everett
L. Crume, vice president, and Ronald
R. Louden, assistant vice presidentagriculture.
First National Bank: Benton O’Neal,

Specializing in
Nebraska Municipal Bonds

ROBERT D. NORTHROP

ELDRIDGE B. SCURR
Om aha
Phone 4 0 2 341-1500

Manager Municipal Operations

Lincoln
Phone 4 0 2 477-9221
F

ir s t

e b r a s k a

e c u r it ie s

C o r p o r a t io n

Corporate B on d s

Lincoln
Northwestern
Banker, May, 1965
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Federal Reserve Bank of St. Louis

•

L isted & Unlisted Stocks

Omaha

•

Hastings

•

M utual F u n d s

Grand Island

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Tom and John and Gene represent the Security National
to a good number of Siouxland hankers who have personal
knowledge of their helpfulness and experience in banking
operations.
They are looking forward to the conventions and to meet
ing their friends there. If you don’t know them — why
not look them up in Sioux Falls or Omaha and get ac
quainted.
JOHN DIEFENDORF

There are many ways in which the Security

National can help you.

S e c u r it y

N a t io n a l

Bank

of Sioux City
GENE HAGEN

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Federal Reserve Bank of St. Louis

Member Federal Deposit Insurance Corporation
Northwestern Banker, May, 1965

N ebraska

News

assistant vice president, and John V.
Giddens, agricultural representative.
First Stock Yards Bank: H. H.
Broadhead, Jr., vice president, and A.
R. McClaskey, assistant vice presidentagriculture.
Sioux City
First National Bank:

Dick Taylor,

vice president.
S. W.
Evans, first vice president, and J. J.
McGill, assistant vice president.
Security National Bank: Thomas C.
Horn, senior vice president; John A.
Diefendorf, vice president, and R. E.
“Gene” Hagen, assistant cashier.
Toy National Bank: J. William Van
Dyke, chairman of the board; Burton
L. Poulson, vice president, and Conrad
E. Aronson, assistant vice president.
Five Stock National Bank:

Bank Equipment and Other Firms
Bankers Service Company: Henry
H. Byers, president, and Myron E.
Karsten, executive vice president, Des
Moines.
Burroughs Corporation: Virg Dud
ley, branch manager, Omaha; Clint
Bull, zone manager, Omaha, and Dick
Mayberry, sales representative, Nor
folk.
Central States Health & Fife Com
pany: Robert C. Findlay, vice presi

dent, and Jerry G. Kraemer, regional
manager, Omaha.
Chiles and Company: Hal F. Childs
and Donald L. Anderson, vice presi
dents.
F.

Davenport

Company:

Charles R. Allen.
Diebold, Inc.: R. S. Gwinn, regional
manager, and Hal R. Herron, sales
representative, Des Moines.
First Nebraska Securities, Inc.: E.
M. Hunt, president; Dale C. Tinstman, executive vice president; Charles
J. Burmeister, vice president and sec
retary-treasurer, Lincoln.
Kirkpatrick Pettis Company: Bert
L. Reed.
George FaMonte & Son: R. Paul
Rogers, Chicago.
Fawrence Warehouse Company: G.
A. Johnson, assistant vice president,
Chicago.
Mosler Safe Company: J. M. Bade,
district manager, and Gerard J. Cholet, bank sales engineer.
National Fidelity Fife Insurance
Company: Doug Johnson, Jerry Stef

fen, Merlin Menk and Robert Stroud.
Omaha Printing Company: Harvey
Hayes, Jim Foley, Charlie King and
Bill Bloom.
J. Cliff Rahel and Company: J. Cliff

Rahel, chairman; Cliff R. Rahel, presi
dent; George E. Knack, vice president,
resident manager, Lincoln office; How
ell Roberts, Lincoln office representa
tive, and Bill Gourley,
Recordak Corporation: Jack Lud
wig, Don Keller, Don Frankland, and
Bill Czamanski.
Robert E. Schweser Company:

L. Lawrence, president; Frank E. Wil
liams, executive vice president; Pat
rick H. Rensch, vice president and
counsel; William March, secretarytreasurer, and Robert E. Roh, vice
president.
St. Paul Terminal Warehouse Com
pany: Russell V. Peterson, district

manager, and Edward Mooney, sales
representative.

St. Paul Western Companies: Jack

Hill, manager, Omaha.
K

United States Check Book Compa
ny: Fred E. Pfaff, vice president; Dick

Hansen, Joe Peer, Howard Yarwood,
Chuck Peterson, Jim Lindberg, and
Kent Miller.
Ed
win N. Van Horne, chairman; John E.
Van Horne, president; Bill Beavers
and Mike Van Horne, assistant vice
presidents, and Jack Nellson, repre
sentative.

Van Horne Investments, Inc.:

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J . W illia m Van Dyke
C h m . of the Board

Leslie Olson
V .P. & C a sh ie r

Burton Poulson
V ice . Pres.

C o nrad Aronson
A sst. V .P.

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have found that their partnership with us has truly been profitable.

Our cor

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Mem ber F.D.I.C.

THE TOY NATIONAL BANK

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SIOUX CITY, IO W A

Northwestern Banker, May, 1965

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Federal Reserve Bank of St. Louis

ST. JOSEPH

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A m erica n N ational h as the exp erience and k n o w -h o w to give
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efficien t correspondent service.

Correspondent Department
Everett L. Crume, Vice President
Donald D. Folks, Vice President

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Federal Reserve Bank of St. Louis

Agricultural Department
Webb Embrey, Vice President
Ronald R. Louden, Asst. Cashier

AMERICAN NATIONAL BANk / ^
6th & Francis

Phone A D 3-6141

ST.

MISSOURI

JOSEPH,

Northwestern Banker, May, 1965

N ebraska

News

"'Barter 93Charge Miarieti
Nebraska State Banking De
T HE
partment last month was accused

o ffic e
e q u ip m e n t co .

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of “bartering a public franchise” in
connection with the decision to move
the Bank of Wood Lake to Valentine
when the Nebraska State Bank at
Valentine was ordered closed.
The claim was made by John Pow
ers, attorney for petitioners demand
ing that the move be voided. The at
torney stated that authorization to
move the Bank of Wood Lake to Val
entine hinged upon a provision that
physical assets of the liquidated Valen
tine bank be purchased for $100,000.
Mr. Powers said that he did not
question the motives of Henry Ley,
state banking director, in authorizing
the move, but added, “No matter what
his motives, he cannot barter away a
public franchise.”
Richard Williams, assistant attorney
general representing the banking de
partment, said that the bid to buy the
assets and the authorization to move
were separate provisions that were
not interrelated. The Cherry County
District Court confirmed the sale.
The move was originally authorized
after it was discovered that Richard
Davenport, president of the Nebraska
State Bank, had embezzled more than
$1.5 million.
Meanwhile, the New Hampshire In
surance Company, which had bonded
Mr. Davenport to the extent of $1.3
million, agreed, under terms of a set
tlement, to pay the state banking de
partment $1,225,000.

OM AH A NEW S . . .
(Continued from page 82)

Choose from equipment and fur
niture in every price range, from
fu n c tio n a l budget to d esig ner
styled custom built models. All
M akes o ffers co m p lete o ffice
design and d eco ra tin g counsel
to help you plan new banking
facilities or remodel your present
offices.
Drop in during the Convention.

a ll m a k e s o f f i c e
e q u ip m e n t co .
2 5 5 0 FARNAM
OMAHA, NEBR.
Phone 341-2413

Write or Call Collect
Northwestern Banker, May, Ï965

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

A decision was expected approxi
mately May 1 concerning an applica
tion for the proposed Westwood Bank
of Omaha for a state charter.
Proponents contended in the hear
ings that a bank at 120th and Center
Streets is necessary due to the fact
that approximately 18,000 persons live
within a mile and a half of the loca
tion.
Opponents contend that granting a
charter for the bank at this time
would be premature inasmuch as the
shopping center, in which the bank
would be located, is not yet under con
struction.
* * *
The Robert E. Schweser Company,

Omaha, u n d e r w r ite r of municipal
bonds, has announced the addition of
a corporate securities department.
The new department will be staffed
by a team of account executives with

a cumulative experience of more than
30 years in corporate securities.
Harold H. Hultman will head the
department. His associates will be
L. C. (Jack) Pet
er s en and Lee
Williams.

T h e Schweser
Company execu
tive officers are:
L. L. Lawrence,
president; Frank
E. Williams, ex

ecutive vice pres
ident; Patrick H.
Rensch, vice pres
H. H. H U L T M A N
ident and general
counsel, and William March, secre
tary-treasurer.

L. W I L L I A M S

L. C. P E T E R S E N

The company has branch offices in
Albuquerque, New Mexico and Ven
tura, Calif.
* * *
For the First time, the Iowa and
Nebraska Investment Bankers will
hold a joint Field Day on Thursday,
June 10.
The Wakonda Club in Des Moines
will be the site for the program as
the Iowa and Nebraska dealers play
host to investment bankers and deal
ers from all sections of the nation.
There will be a cocktail party and
dinner reception on Wednesday eve
ning preceding the Field Day.

A sk s E d ito r s ’ H e lp
W. W. Cook, Sr., president of the
Beatrice National Bank and Trust
Company, last month asked editors
and publishers attending the Nebras
ka Press Advertising Service annual
meeting in Lincoln to help banks im
prove their image.
Mr. Cook said that the image of
banks as bastions of integrity and se
curity has been hurt by news reports
of bank failures.
He said that the recent bad news
concerning banks was unusual and
that the vast majority of banks are
sound and essential to their communi
ties.

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

Agricultural Representative Carf Carlson (A/C) Working with Equipment Loan Specialist Roy Lee.

When you have an equipment loan problem
help is just around the corner. . . .
When our correspondent banks come to
us with a question on heavy equipment we
are in an unusually good position to help.
We call on our own Roy Lee.
Roy grew up in the heavy equipment
business. He started working with a con
tractor at the age of 15 and has over 20
years of experience working with heavy
equipment distributors and contractors.
Whether the job be soil conservation,

earth moving, bridge building, paving,
quarry operations, or material handling . . .
his knowledge of the right equipment for
the job, and of the best way to finance
that equipment can benefit your customers.
We'll be glad to help anyway we can . . .
advice or participation. You tell us what
you need and Kansas City's biggest bank
will do the rest.

(ommerce ]rust (ompany"
Member Federal Deposit Insurance Corporation.

Correspondent Division
Commerce Tower
9th and Main, Kansas City, Missouri
Northwestern Banker, May, 1965

Nebraska News

N eb ra sk a C onvention C om m ittees

Ernest T. Tanner, vice president, First
National; Eugene Zaloudek, vice presi

dent and cashier, Southwest Bank, and
Laddie J. Kozeny, first vice president,
Packers National.

J. F. D A V IS
President
First Natl.

M. F. M IL L E R
President
Omaha Natl.

HAIRMAN of the general commit
tee in charge of arrangements for
the 68th annual convention of the Ne
braska Bankers Association is J. A.
Irving, president of the First West
S i d e B a n k of
Omaha. O t h e r
members of the
general co m m it
tee, as well as
chairmen of the
other three con
vention co m m it
tees, are pictured
here.
Fred H. Doug
las is a vice presi
dent of The Oma
ha National Bank. F. Phillips Giltner
is executive vice president at the First
National Bank of Omaha. Mrs. Thorndyke’s husband is a vice president at
The United States National Bank.
Other members of the three commit
tees are:

E. W . L Y M A N
President
U. S. Natl.

A. J. H A L L A S
Chm'n., South Omaha
Stockyards Natl.

Entertainment
Kennit Hanson, vice president, U. S.
National; Herbert H. Meile, senior vice
president, Douglas County Bank; Rob
ert Harding, vice president, Security
National; W. F. Jahde, vice president,
First West Side Bank; Edward 1).
Brodkey, president, Ames Plaza Bank;
Cecil W. Means, vice president, South
Omaha Stockyards National; Robert
D. Brady, cashier, Center Bank; Dale
A. Kruse, cashier, North Side Bank;

R. E. S T A N L E Y
President
Packers Natl.

P. S. FRANC IS
President
Southwest Bk.

Hostesses
Mis. Kenneth G. Harvey, Douglas
County Bank; Mrs. F. Mack Bristol,
Security National; Mrs. Paul Pedersen,
First West Side; Mrs. Patricia Simunaci and Mrs.
Robert E. John
son, Omaha Na
tional; Mrs. D. J.
M urphy, South

Mrs. Gerald E.
K a r l i n, Center
Bank; Mrs. J. M.
Hart, Jr., North
M RS. T H O R N D Y K E
Side Bank; Mrs.
Chairman
Hostess Comm.
Don D. Ostrand,
First National; Mrs. Tim J. Spencer,
Packers National, and Mrs. George C.
Rankin, Federal Reserve Bank.

Bank Interest Bill
K. G. H A R V E Y
President
Douglas Co. Bank

F. H. D O U G LAS
Chairman
Entertainment

L. D. M A T T H E W S
President
North Side Bank

F. P. G IL T N E R
Chairman
Banquet

Worship this week
Northwestern Banker. May, 1965

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

president, The Omaha National, and
Mrs. Johnson; A. J. Hallas, chairman,
South Omaha Stockyards National,
and Mrs. Hallas; Charles C. Carter,
assistant cashier, Center Bank, and
Mrs. Carter; Bernard J. Murphy, as
sistant vice president, North Side
Bank, and Mrs. Murphy; Perry S.
Francis, Southwest Bank, and Mrs.
Francis, and Walter F. Kunold, Jr.,
assistant vice president, Packers Na
tional, and Mrs. Kunold.

Omaha S tock yards N ational;

Give them
a Faith
to live by

RELIGION IN AM ER IC AN LIFE

Banquet
James A. Zimmerman, vice presi
dent, U. S. National, and Mrs. Zimmer
man; Carl C. Brady, vice president,
Douglas County Bank, and Mrs. Brady;
J. R. Burnham, vice president, Secu
rity National, and Mrs. Burnham;
Howard Sunderman, vice president
and cashier, Ames Plaza, and Mrs.
Sunderman; David R. Johnson, vice

A bill which would have allowed
state chartered banks the same flexi
bility in charging interest rates as is
now held by national banks was de
feated recently in the Nebraska Legis
lature.
The measure (LB 783), which had
been introduced by Sen. John Knight,
had been dropped by the Banking
Committee, 8-0. Sen. Terry Carpenter
was beaten, 26-13, in an effort to raise
the bill.
The Banking Committee, according
to reports which reached the floor,
felt that it could accomplish the pur
poses of the bill by amending some
other bill still before it.

Nebraska News

Seek Illinois Drive-Ins
An amendment to the Illinois Bank
ing Act, which would permit any
bank to maintain a drive-up facility at
a location apart from its main office,
is being sponsored by the Illinois
Bankers Association.
The a m en dm en t was approved
u n a n im o u sly by the Association’s
Council of Administration, according
to John F. McCarthy, president of the
Association, and president of the Mar
quette National Bank, Chicago.
Mr. McCarthy said that the Illinois
Bankers Association has favored such
an amendment for several years, but
has been prevented from advocating
its passage by opinions of federal au
thorities that such facilities would be
considered branches. Recent court
rulings, interpreting the intent of the
Congress when it enacted the Nation
al Banking statutes, would seem to
have eliminated the basis for these
opinions, he said.
Mr. McCarthy emphasized that the
I BA’s action in no way alters its op
position to any form of branch bank
ing. He stressed that the amendment
would limit strictly, the distance the
drive-up facility could be located from
the maintaining bank and the services
such facility could provide.

Merchants National Bank, Cedar Rapids, Iowa

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Name of Bank
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THE FARM

PICTURE®

RANCH-FARM • DAIRY-FARM • SOUTH-FARM
P. O. BOX F
URBANA, ILLINOIS 61802

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Federal Reserve Bank of St. Louis

City
My Name

State
Title

FULL SERVICE TO THE FINANCIAL FIELD
Northwestern Banker, May, 7965

300
(v r o u | ì P r e s i d e n t s

ite p o r t F a rm .

Ita O u tlook

of the six Nebraska
P RESIDENTS
Bankers Association groups re
port the following crop, livestock and
business conditions for their respec
tive areas:
E. C. VARNEY
Vice President
and Cashier
Security State Bank
Ansley
President
Group 5

5 covers the Central Ne
GROUP
braska area, where moisture con
ditions are varied. Those counties
along the southern border received
substantial amounts of moisture in
the form of snow. The northern por
tion of the area has not been so for
tunate, having received only 1.60
inches of moisture so far this year.
We are in hopes we will get addition
al spring moisture; if not, the pros
pects of good crops are pretty dim.
Customers who have hesitated in
purchasing replacement cattle have
found an increase of $2 or $3 per
hundred in cost over purchases of the
same class of cattle six weeks ago.
Feeders will probably enjoy their best
year in several, due mostly to their
insistence on purchasing nearer the
fat cattle price. If moisture condi
tions are favorable, so that marketing
of cattle this fall can be at a normal
pace, I believe price will be a little
better than last fall.
There has been a 4 per cent in
crease in the number of acres placed
under the feed grain program in Cus
ter County, and I assume other coun
ties have shown about the same in
crease. Certain types of merchants
will suffer from the large acreage

placed in government programs. Gen
erally speaking, so far this year mer
chants’ volume is about the same as
last year.
Land prices seem to be increasing
with each sale. Most sales are made
to an adjoining neighbor; one who
can purchase on contract, thinking
only of the yearly payment, or ob
taining long term government loans.
The idea of purchasing land as to
what it will produce seems to be oldfashioned.
Bank deposits appear to remain
about the same as a year ago. Loan
volume is above a year ago. This, of
course, will continue due to the ever
increasing cost of operation.
The big IF in this area will be
moisture. There is very little sub
soil moisture. More than average
rainfall will be needed to produce an
average crop in our area.
EDWIN W . TAUER
President
Crofton State Bank
Crofton
President
Group 3

have not changed too
CONDITIONS
much in the Group 3 area here in
Nebraska.
The low prices on livestock have
not helped the economy of the farm
ers or the businessmen in the smaller
communities. Every small business
man has felt the pinch and business
has suffered somewhat from this.
In most areas the 1964 crop was not
as good as in 1963. Hot, dry weather
at the critical growing stage last sum
mer cut the yields on all grain. Mois
ture conditions going into this spring

WELCOME BANKERS
TO 1965 NEBRASKA BANKERS CONVENTION
W e 11 L

lo o k in g

fo r y o u

W a y

3 -4

Suite 115-117
SHERATON-FONTENELLE HOTEL, O M AHA, NEBR.
for that old fashioned hospitality
JIM FOLEY

CHARLIE KING

HARVEY HAYES

O M A H A PRI NTI NG C O M P A N Y
1301 Farnam S treet

Northwestern
Banker, May, 1965
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

operations are not too good. Sub-soil
moisture is low. We went in the win
ter drier than usual. Some rains the
past 10 days have helped but we need
considerably more to make it a good
growing season. (Report as of midApril.)
Replacement cattle are somewhat
lower than last year, but it will take
good management to make any money
feeding cattle during 1965.
Sign up for the 1965 feed grain pro
gram is running a little ahead of 1964.

Ph. 342-7123

Omaha, Nebraska

WARREN
McCLYMONT
Executive Vice
President
First State Bank
Loomis
President
Group 4

1964 crop in Group 4 was gen
OURerally
good in spite of somewhat

erratic moisture conditions. Irrigated
corn that got all the water it needed
ran over 100 bushels per acre, and
dryland milo yielded all the way from
40 to 80 bushels an acre.
We are starting out the 1965 sea
son with better moisture than we
have had for two or three years.
Phelps County in particular received
no moisture from September to the
latter part of January, but since then
we have had good moisture in the
form of heavy wet snow and showers.
This has rejuvenated wheat that had
seen no moisture since planting.
Farmers in this area signed up to
participate quite heavily in the feed
program. I feel this was largely as
insurance since over-plantings do not
have to be destroyed until August 15.
Bankers in Group 4, as everywhere,
are enjoying the recent improvement
in livestock prices. Feeders are mov
ing cattle to market as soon as they
are fat and hope to retain these price
gains, at least for a while.
Each year sees more cattle being
slaughtered in our own area. Minden’s new plant should be in operation
in the not too distant future, and the
plant at Darr should be in operation
by the time this is printed.
Live Beef and Carcass Beef Futures
trading have stirred very little inter
est, but some feeders have commented
that it merits testing, by someone else.
I personally feel it could be very help
ful to certain types of operations.
To cap the entire picture off, a
workable time-sales law would put
most bankers in a good mood for the
convention.

101

, lg?

-J!
MgSgte
¥

J L

and Cashier
First National Bank
Tekamah
President

the situation gener
R EGARDING
ally in Group 2. The area has
had sufficient moisture this winter to
go into the planting season. Due to
the late March storms some crops will
go into the ground a little late. Feed
grain sign-up is being used as a hedge
against adverse crop production and
will help cut the operating costs of
the farmers. With the continuation
of the feed program and better live
stock prices, we in Group 2 feel opti
mistic about the coming year.
We are far enough away from the
past year that we have forgotten the
bad cattle market, hail storms, the
insects, and the dry August that re
duced our crop yields considerably.
Cattle feeders at this time are en
joying more profit than at this time
last year. Cattle were laid in last fall
at a better price from the feeders’
standpoint. Higher corn prices will
still keep the cattle feeder under
pressure to show the profit he needs.
The bad weather during the month of
March has cut the gains on cattle on
full feed. If our present fat cattle
prices stay where they are those in
the feed lot should show fair returns.
The hog market is at a point where
returns are fair and it looks as if this

THE

year will be profitable for the efficient
producer.
Business men in the smaller towns,
as in the past few years, are under
pressure. This has been brought about
by the farmers finding it necessary to
shop around in order to cut their
costs. It is becoming a natural tend
ency for people to want to go shop
ping where they have more to select
from and also have a better atmos
phere to do their shopping.
Due to the above situation, I can
see where credit people will have to
adjust their lines to handle more fer
tilizer, feed and feed bills. In the
past, it has been customary for busi
nessmen to carry these accounts until
fall, but due to the great amount of
money it will take to finance fertilizer,
feed and feed bills they find they will
not be able to carry accounts more
than 30 days. This will mean that
bankers will have to analyze their
loans to see how far they will be able
to go and the borrower should be
checking to see if credit will be avail
able to him.

E BELIEVE bankers in western
W
Nebraska are generally optimis
tic, although some find it difficult to

immediate future. But for the long
haul they are generally in agreement
that we have a great future in this
area.
Drought has definitely set back the
winter wheat crop, but it is still too
early to tell what the outcome will
be. Moisture in any quantity in the
next few weeks could improve the
situation considerably, although many
dry land farmers will find it necessary
to replant wheat acreages to some oth
er crop. Perhaps more serious than
drought is the depressed price of
wheat.
Ranchers have come through the
winter in fine shape, with recent
weather conditions favorable for calv
ing. Feeders had excellent conditions
for gains of beef and lamb, and prices
received for both have improved. The
quality of feed produced last year,
particularly in irrigated areas, was
the best in several years. Those in
irrigated areas also were fortunate to
produce a bumper crop of beets,
beans, potatoes and hay, and the
prices received for all were more fa
vorable than in recent years. Pota
toes have sold for several months
now for around $4.00 per hundred
weight, as compared with 75 cents to
$1.50 in previous years. Pinto beans
also reached a more favorable level
than for several years. Heavy snows
received in the watershed will pro
vide adequate irrigation water for
the coming year.
On the other side of the coin are
high costs of production and a short
age of hand labor which may become
GROUP REPORTS . . .

find reasons for their optimism in the

CENT

BARGAIN

OFFER

(Turn to page 102, please)

PLAN

M akes it much easier fo r you fo c o n v e rt y o u r accounts in to b u yin g th e ir own checks.

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Federal Reserve Bank of St. Louis

A sk o u r salesman a b o u t this plan.

1201

SO U TH SIXT EE N TH STREET

OMAHA

NEBRASKA

¡OieckWtC.

Northwestern Banker, May, 7965

102

National Bank & Trust Com
F IRST
pany announces the addition of

ciation in Broken Bow to accept a po
sition with the National Bank of Com
merce in Lincoln.

Robert L. Horn to its correspondent
bank staff as an agricultural repre
sentative.
Occupy Bank
A native of Nebraska, Mr. Horn
Occupancy of the new Peoples State
graduated from the University of Ne Bank in Wolbach was accomplished
braska College of Agriculture in 1958. last month.
Since then he has served with the
American National Bank at Kimball
and the First National Bank of Flem GROUP REPORTS . . .
(Continued from page 101)
ing, Colo. He was president of the
latter bank.
critical. We believe, though, that
* * *
most farmers and ranchers are to be
Lincoln Bank South opened for
co m m en d ed for utilization of ad
business April 28 at 3737 South 27th vanced techniques, a realistic ap
Street. It is Lincoln’s ninth bank. proach to cost-cutting, and plain old
Quarters for the new bank provide “belt-tightening” w h e r e necessary.
1600 square feet of space, with the in Being an optimistic and hardy lot,
terior completed in early American. they look forward to better days
Lincoln Bank South opened with ahead.
$350,000 of total capital. Hours are
Loan demand at most western Ne
11 a.m. to 6 p.m., Monday through Fri braska banks is steady, with some de
day, and 9 a.m. to noon on Saturday. crease in the feeder cattle category.
Roger Gohde, formerly with Nation Commercial and other loans are up,
al Bank of Commerce, is vice presi and real estate loan demand is greater
dent and cashier and manager of the than in recent years. “ Main street”
bank. Glenn Yaussi is president and businessmen have enjoyed favorable
holds the same position with National business, particularly in the larger
Bank of Commerce. Executive vice towns. The weatherman has been on
president is Gene C. Eaton, senior their side, where shoppers are in
vice president of National Bank of volved.
Commerce.
Deposits in practically all banks are
* * *
up over a year ago. Growth in time
Karl E. Dickinson, vice president of
deposits is the greatest factor respon
Gateway Bank, was elected last month sible for this trend. Other services
to the board of directors of the Lin of banks are being expanded, and sev
coln Chamber of Commerce.
eral major building projects have
5)i ^ ^
either just been completed, or are in
Thomas Lawrie has joined the Lin process, or are on the drawing board.
coln staff of Chiles and Company as an
account executive. Mr. Lawrie has
D. L. CLEMENTS
been engaged in radio and television
Cashier
work in Lincoln for several years
American Exchange
and prior to that was with an invest
Bank
ment firm for a short time. After a
Elmwood
period of training in Omaha, head
President
quarters of the state-wide investment
Group 1
firm, he has been assigned to the Lin
coln office where he will be associated
with W. Wesley Radcliffe, resident
manager, and Harry Ware.
EATHER continues to be the
* * *
dominant factor in any economic
Merwyn G. French has resigned his
position with Production Credit Asso- forecast in the Group 1 area. A near
ffofor
rfhFRASER
w e sfe rn Banker, May, 7965
Digitized
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Federal Reserve Bank of St. Louis

disaster last August sharply reduced
the harvest of fall crops, which, to
gether with weak livestock prices,
brought a reduction in business activ
ity.
In the face of this the amazing thing
is the continued strength of the rural
economy. Land prices are again up
sharply; machinery sales, particularly
of the larger implements, continue
good and bank deposits are steady ex
cept in the area of most severe
drought. Excellent spring moisture
and stronger cattle and hog prices
have contributed to a feeling of cau
tious optimism for the coming year.
The continued technological devel
opments in agriculture bring the busi
ness men of the area a new type of
customer with new and difficult prob
lems to be met. Unfortunately, some
towns have not been equipped to sup
ply these needs and are losing both
business and population. In the re
verse, the areas surrounding Omaha
and Lincoln, particularly where con
venient tranportation is provided by
the interstate highway system, are
finding an active demand for living
space from persons coming out from
the city.
Much publicity has been given to
the problem of replacing the air base
after it is closed in Lincoln. It is
hoped that the facility may be used to
attract something which will contrib
ute to the economy of the area.

Joins St. Joe Bank
Marvin L. Howe has been added to
the staff of the First National Bank
of St. Joseph, Mo.
He had been with the Fourth Na
tional Bank of Wichita in the data
processing division. At the St. Joseph
bank he will supervise coordination
of various systems used by the bank
so they can be converted to computer
processing.

Fred H. Brnning
Fred H. Bruning, long-time banker
and civic leader and son of a founder
of the town of Bruning, died last
month at the age of 70.
President of the Bruning State
Bank, Mr. Bruning had been associ
ated with the bank 53 years.
Mr. Bruning was a past president
of the Nebraska Bankers Association
and served many years as mayor of
Bruning. He also served as a mem
ber of the village board 40 years.

James M. Easom
Funeral services were held last
month for James M. Easom, 88, chair
man of the board of the Platte Valley
Bank, North Bend.

103

Bankers with plans use the

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Federal Reserve Bank of St. Louis

Professional and experienced Mortgage Loan
consultation.. .residential properties —investment
properties —commercial properties

FIR ST

NATIONAL B A N K

& T r u s t Co mp a n y of Lincoln
Northwestern Banker, May, Ì96S

104

/
4

L et’s get together
at the May
Group Meetings
W e’re looking forward to seeing you on
these dates:
Group
5
6
3
2
4
8
7
10

Date
May 4
May 5
May 6
May 7
May 18
May 19
May 20
May 21

Town
Council Bluffs
Perry
Clear Lake
Spirit Lake
Oelwein
Maquoketa
Tama
Ottumwa

W ell do our best
to answer your questions
on any banking problem.

O N T H E I R W A Y T O T H E M A Y G R O U P M E E T IN G S A R E :
H O M E R JE N SE N ( L E F T ) , C Y K I R K A N D G O R D O N D O D G E .

6th Avenue and Locust Street
Des Moines, Iowa
Member: F. R. S.

r t hFRASER
w e s t e r n B a n k e r , M a y , 7965
DigitizedN ofor
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Federal Reserve Bank of St. Louis

t
Member: F. D. I. C.

105

West Union is being studied by FDIC
and Iowa Banking Department exam
iners.
Deposits in The First National Bank
in West Union total nearly $7 mil
lion.

Iowa

NEW S

Expansion Purchase
E. L. BALLOU
FRANK WARNER

President
Secretary

Storm Lake

vanced from assistant cashier to cash
ier of the bank.

The Toy National Bank, Sioux City,
has purchased the Jenkinson Build
ing, 309 Nebraska Street, for purposes
of future expansion. No immediate
changes in the building are planned,
according to C. W. Watkin, assistant
vice president. Full details are to be
announced at a later date.

Bond Sales High

New Drive-In

Glenn L. Ingle, state director of sav
ings bond sales, reports that Iowa
has attained 21 per cent of its 1965
goal in the first two months of the
year. This compares with a national
average of 18 per cent.

Peoples National Bank in Columbus
Junction has announced the purchase
of a local building and plans to de
velop drive-in teller facilities and cus
tomer parking in the vicinity of the
building.

Feminine Finances

Three Promotions

The Security National Bank of
Sioux City recently held its Women’s
Finance Forum. The forum was ad
dressed by Arthur R. Upgren, econo
mist; Jim Rutherford, former insur
ance executive, and Howard Johnson,
vice president and trust officer at Se
curity National.

Three promotions have been an
nounced at the Ida County State Bank
in Ida Grove. D. Y. Simonson has
been elevated from assistant vice pres
ident to vice president. Ward Kilgore
has also been advanced from assistant
vice president to vice president and
Hugh Septer has been promoted from
assistant vice president and farm rep
resentative to vice president and farm
representative.

Des Moines

E x p ec t R ecord, tiroup A tten d a n ce
principal speakers will ap
F OUR
pear at all eight Iowa Group meet
ings this month.

They are E. Leland
Ballou, president
of the Iowa Banke r s Association;
M. M. McMichael,
Jr., v ic e p r e s i
dent, Iow a -D es
Moines National
Bank, who will
discuss the Foun
dation for Com
m e rcia l Banks;
John C h rystal.
J. C H R Y ST A L
I o w a su p e rin
tendent of banks; and J. N. Christian-

Boost Capital

M. M. M cM IC H A E L

J. N. C H R IS T IA N S O N

son, head of Christianson and Son, a
sales, marketing and communications
consulting firm, Scottsdale, Ariz. De
tailed programs for each of the meet
ings appear on the following pages.

A vote was recently taken among
stockholders in the Poweshiek County
Savings Bank at Brooklyn to increase
the bank’s capital stock from $25,000
to $100,000 by stock dividend. Plans
were also announced recently for ex
tensive remodeling of the bank build
ing in the near future.

Clermont Move
An application to move Clermont’s
Farmers Savings Bank charter to

New Addition
Jasper County Savings Bank will
construct a two-story $250,000 addition
immediately south of its present loca
tion in Newton, according to A. E.
Peters, president. The new facility
will house drive-in and walk-up teller
windows and will house the bank’s
installment loan department on the
second floor.

Receive Approval
Robert D. McKee, president of the
Wright County State Bank at Clarion,
reports that final approval was recent
ly received to acquire the Bank of
Galt and to maintain an office in that
community. The date for merging
the two banks was set for April 12.
Combined deposits of the two installa
tions is in excess of $4 million.

S in ter C om pletes

R nilding

Promotions Announced

Karl D. Stotesbery, formerly assist
ant vice president of Chicago Lake
State Bank, has been named vice pres
ident of the Brooklyn Center State
Bank, according to E. J. Hamernick,
executive vice president. In addition,
Harold P. Weinacht has been ad

Northwestern Banker, May, J965
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

OPEN HOUSE in new building marks 10th anniversary.

new Slater State Bank recent-mal showing of the new banking
T HE
ly was completed and an open house. The occasion also marked the
house was held last month duringbank’s 10th anniversary celebration,
which the public was invited to a for-postponed for the opening.

106

Iowa News

H ep. H a n sen N o tes
H a u liers 9F a rm
John R. Hansen
CONGRESSMAN
of Iowa’s Seventh District, re
ported last month that more and more
of the Small Business Administra
tion’s loans are going to small firms
borrowing $15,000 or less. He stated
that the state of Iowa received more
than $197,000 in SBA loans during the
month of February. Fifty-six per cent,
he said, were for amounts of $15,000
or less.
The Congressman also reported last
month that a survey showed that an
overwhelming percentage of Iowa
bankers favor continuation of present
farm programs.
The survey, according to Represent
ative Hansen’s report to the House of
Representatives, showed that 77 per
cent of the bankers polled, favored a
four-year extension of present, or sim
ilar, farm legislation.
Mr. Hansen, a member of the House
Banking Committee, said that the sur
vey was taken by the Iowa 99 Legis
lative and Advisory Group assistant
to the statistical department at Iowa
State University, Ames.

reer, is the first woman to be ap
pointed an officer in the City National
Bank’s history. In recent years, she
has served as head secretary and as
sistant to the president.

Ellsworth Thomas
Ellsworth Thomas, president of the
Lee County Savings Bank, Fort Madi
son, died there recently.

mer state representative and a state
senator, was also chairman of the
board of Economy Advertising Com
pany.

Remodeling; Complete
The First National Bank, Marion,
recently completed an extensive re
modeling project which included the
removal of a wall separating the bank
lobby from the loan departments and
c o m p le te ly redecorating the main
bank and carpeting the bank and loan
department lobbies.

Two Promotions
Recent Actions
In recent actions, the Iowa Depart
ment of Banking approved capital
stock increases as follows: Iowa Sav
ings Bank, Coon Rapids, $75,000 to
$100,000; Security Savings Bank, Ireton, $60,000 to $75,000, and Libertyville Savings Bank, Libertyville, $25,000 to $50,000.
In addition, a bank parking lot of
fice certificate was issued to American
Trust and Savings Bank, Dubuque.

Open House
Dallas County Bank, Minden, held
open house April 15 in its newly re
modeled quarters.

At the annual stockholders’ meeting
of the Early Savings Bank, Early, last
month, Marvin G. Hansen, cashier,
was promoted to vice president and
Donald W. Kelley, assistant cashier,
was named cashier of the bank.

Joins Bank
Jamie O. Naggs, Wapello County
extension director since 1956, will join
the staff of the First National Bank of
Ottumwa, July 1, upon his retirement
from extension work. He will head
the bank’s farm department, yet to
be organized.

Offers Scholarship

Woman Officer
Miss Dorothea E. Howard has been
appointed to the position of assistant
vice president of the City National
Bank, Clinton, according to Bruce
Townsend, bank president.
Miss Howard, associated with the
bank during her entire business ca

Leroy S. Mercer
Leroy S. Mercer, president of the
Hills Bank and Trust Company, Hills,
died last month at Mercy Hospital in
Iowa City following an extended ill
ness. Mr. Mercer, twice a mayor and
councilman for Iowa City and a for

We’ll See You at the
May Group Meetings
To the nearly 250 Iowa
bankers now using our
R. FLEMING
C. GUSTAVESON
credit life programs, we
hope to see and greet each of you at your group meeting.
To those of you who are not familiar with National Fidelity’s credit
life programs, we would like to tell you about them. Look for us
at the group meetings. W e’ll he looking for you.
One of the Nation's Strongest by Any Standard of Comparison

^^ational fidelity \ jfe
IN S U R A N C E C O M P A N Y

N orthw estern Banker, May, 1965
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

K A N S A S C I T Y 6, M O .

The Dunlap Savings Bank recently
notified seniors attending Dunlap
High School that the bank had estab
lished a $300 scholarship to encourage
graduates to continue their education.
In letters sent to the seniors, the bank
listed indications of criteria upon
which the scholarship winner would
be determined. Seniors were required
to complete and return a short appli
cation for the scholarship.

New Loan Department
Sac City State Bank recently opened
a new full-time installment loan de
partment, according to George Pingrey, president.
Although the bank has made install
ment loans in the past, it has not had
a separate installment loan depart
ment. John (Jack) Horn heads the
new department.

New Bank— New Building
A permit to build a banking house
for the recently-authorized Hawkeye
State Bank in Iowa City has been ap
proved by city officials. Estimated
cost of the one-story brick veneer
building is $100,000. The bank will
feature a drive-in teller window. Prin
cipal incorporator for the bank is
John Graham, Des Moines.

107

American National has an excellent banking
connection in Lisbon.

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

Lisbon, Iowa, that is.
Officers of the Lisbon Bank and Trust
Company know that they can depend
upon American National for prompt,
first-class creative correspondent bank
ing services. Lots of service and a
minimum of red tape.
Our correspondent banking officers
speak many languages: “ Investments",
“ C a ttle ", “ A utom ation ", “ C o rn ",

“ Credit", “ Soya Beans", “ Trusts". (Ask
one o f them to say something in
“ Automation".)
Need a big correspondent bank in
Chicago whose officers speak in your
native tongue? That's us. American
National. (Incidentally, we have ex
cellent banking connections in Lisbon,
Portugal, too.)

We serve thousands of people... but we serve them one at a time

American National Bank
AND TRUST COMPANY OF CHICAGO/LA SALLE AT WASHINGTON 60690
FRANKLIN 2-9200

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

Northwestern

Banker ,

May,

1965

108

Iowa-Des Moines National
T HE
Bank has filed with the office of
the Regional Comptroller of the Cur
rency in Kansas City an application
for a parking lot office. The facility
is to be located on the northwest cor
ner of Beaver and Douglas Avenues,
immediately west of the Hinky Dinky
store.
* * *
For the first time, the Iowa and
Nebraska Investment Bankers will
hold a joint Field Day on Thursday,
June 10, 1965.
The Wakonda Club in Des Moines
will be the site for the program as
the Iowa and Nebraska dealers play
host to investment bankers and deal-

Learn how W estern and S outhern
Life can help p ro m o te y o u r loan
o p e ra tio n w ith a plan or c o m b in a
tio n o f plans to s u it yo u r needs.

WRITE TODAY FOR COMPLETE DETAILS

Credit Insurance Dept.
P .0. Box 1119 • Cincinnati, Ohio 45201

W E S TE R N and
S O U T H E R N L IF E
INSURANCE C O M P A N Y
A Mutual Company • William C. Safford. President

Northwestern Banker, May, 1965

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

ers from all sections of the nation.
There will be a cocktail party and
dinner reception on Wednesday eve
ning preceding the Field Day.
* * *
The board of directors of the Cen
tral National Bank and Trust Com
pany of Des Moines recently an
nounced the promotion of George T.
Nelson to assistant vice president
in the Business
Development and
P u b lic Relations
Department. Mr.
Nelson joined the
bank in 1934 as a
m essen ger, and
has served in va
ri o u s departments since that
time.
Elected to as
G. T . N E L S O N
sistant cashier in
1946, Mr. Nelson was graduated from
the Northwestern University Finan
cial Public Relations School in 1954.
He is a member of the board of trus
tees of the Highland Park Legion
Post and is a past commander of the
post. Also a past president and past
lieutenant governor of Optomists In
ternational.
He is presently treasurer of the
United Cerebral Palsy group of Con
trai Iowa and treasurer of the Iowa
Boards of International Education.
Mrs. J. A. Ruan, mother of John
Ruan, chairman of the board of Bank
ers Trust Company, died last month
in Des Moines. She was 89 years old.
* * *
Most recent reports on the condi
tion of Francis Lockwood, first vice
president of Bankers Trust Company,
indicate that he is improving steadily
from the serious injuries he received
in an auto accident in February. He
is still hospitalized in San Benito,
Tex.
* * *
Following a recent board of direc-

tors’ meeting, C. W. Aurand, president
of the Iowa-Des
M oin es National
Bank, announced
the e l e c t i o n of
Alan C. Braga to
assistant cashier.
M r. B r a g a ,
born in Rupert,
Ida., at t ended
hi gh s c h o o l in
Union, Iowa, and
following gradu
ation from Drake
University in January of 1962 he
joined the bank’s training program.
Since January of 1963 he has served
in the Iowa-Des Moines Bond Depart
ment.
* * *
Arthur F. Erickson, vice president
for personnel and
operations of the
Bank e r s Tr ust
Company, retired
recently after 44
y e ar s wi t h the
bank.
He started in
1921, be c a me a
tel ler, assistant
cashier and as
sistant vice presA. F. ER IC K SO N
dent. He has been
active in the American Institute of
Banking.
S p e e c h

W in n e r

i
4

■i

W IN N E R — Donald Jordahl, left,
a.v.p, Northwest Des Moines N a
tional Bank, is congratulated by C.
N. Dickson, a.c., Central National
Bank & Trust, Des Moines, follow
ing Mr. Jordahl’s first-place victory
in the nine-state District 10 Speech
Contest sponsored in Sioux City last
month by the American Institute of
Banking. Mr. Dickson is a member
of the national public speaking com
mittee for the A .I.B . Mr. Jordahl
will represent District 10 in the na
tional contest to be held in conjunc
tion with the organization’s annual
convention at New Orleans, La., May
31-June 5. Gene R. Bishop, a.v.p.,
First National Bank, Sioux City,
placed second in the contest.

109

i '

A good connection
in Des Moines
since 1872

(D (S )M IP « £ 1 £ 3 1 7
WAL NUT AT F OUR T H • MEMBER FDI C * DES M O I N E S

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Federal Reserve Bank of St. Louis

Northwestern Banker, May, 1965

110

Iowa News

Planning New Building

Banks Wanted
IF YOU DESIRE TO SELL YOUR BANK—
And

you w a n t th e

T op

M a rk e t p ric e ;

The sale effected confidentially with
iittle effort on your part;
To a purchaser you can

be p ro u d

H E N R Y H. BYER S

in tro d u c e as you r successor, then . . .
C o n su lt us w ith o u t expense or o b lig a tio n b e fo re you make co m m itm e n ts
to anyone.

G e t th e b e n e fit o f 40 yea rs’ experience in selling banks.

H u n d re d s o f c a re fu lly in v e s tig a te d p ro s p e c tiv e purchasers, m ostly e xp e r
ienced bankers.

A ll n e g o tia tio n s ST R IC T LY C O N F ID E N T IA L .
W e w i II be re p rese nted a t th e
C o n v e n tio n

and

Iowa

G ro u p

President,

H e n ry

President,

M y ro n

E. K arsten.

Byers,

N ebraska
M e e tin g s

and

Bankers
by

E xecutive

our
Vice

BANKERS SERVICE
C O R P O R A T IO N
1301 Register & Tribune Bldg.
Tel.: 515— 282-7800
Des Moines, Iowa 50309

James H. Redman, president of Th
State Bank, Fort Dodge, announces
that the bank has acquired an option
from the Swanson Stores, Inc. for the
purchase of the properties owned by
them east of 12th Street and extend
ing to 15th Street (Highway 413).
The option covers parts of three
city blocks; The triangular area
bordered by 12th Street on the west,
Central Avenue on the north, and
13th Street on the east, and the two
half blocks immediately to the east
on Central Avenue between 13th and
15th Streets.
The services of the Bank Building
and Equipment Corporation of St.
Louis, Mo., have been retained to de
sign a new bank building suitable to
the triangular area between 12th and
13th Streets. No immediate plans are
made for the use or disposition of the
remaining areas.
Complete plans for the building
and equipment are now in prepara
tion.

Capital Increased
Robert B. Stump, cashier of Libertyville Savings Bank, announced last
month that directors have increased
capital from $25,000 to $50,000.

M Y R O N E. K AR STEN

Joins Bank

LEADERSHIP IN IOWA

Frank Lown, Emmet county exten
sion director for the past 17 years,
has resigned that position to join the
staff of the Emmet County State Bank.
A graduate of Iowa State University,
Mr. Lown will serve as the bank’s
farm representative.

Okay Offices

Working with, working for a
growing Iowa for more than
100 years. . . Iowa Power. An
investor-owned utility now
serving 200 communities in
the 27 counties o f Iowa’s
heartland.

Parking lot offices have been ap
proved by the State Banking Depart
ment for the Lee County Savings
Bank, Fort Madison, and the Henry
County Savings Bank, Mount Pleas
ant.

Approve Merger
The FDIC has approved the merger
of the Iowa Trust and Savings Bank,
Centerville, with the First National
Bank of Centerville, under the charter
and title of Iowa Trust and Savings
Bank, the resulting bank. The bank
was also authorized to change the
location of its main office from 300
North 12th Street to 200 North 10th
Street. Banking services were to be
discontinued at the former two main
offices of the merging banks.

J. W. Davis
AND LIGHT COMPANY -DES MOINES, IOWA 50303
Northwestern Banker, May, 1965

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

Joseph Walter Davis, 79, president
of the Citizens Savings Bank, Avoca,
died last month in a Harlan hospital
following a four-week illness.

I ll

The officers of Live Stock National strode into
this building on March 29th. They are still there.

If you haven’t looked into 120 South LaSalle St.
during the past few weeks, you sh ou ld. T h e
Live Stock National Bank has merged its staff,
experience and assets with ours. Does this make
corresp on den t banking better than ever at
Central National Bank in Chicago?

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Federal Reserve Bank of St. Louis

yes!
Let’s get together at the Iowa Group meetings. Yes?
Northwestern Banker, May, 1965

112#

Iowa News

H a n kers S ervice
. BYERS, president of
H ENRY
Bankers Service Company, Des

Saht
dent of the new corporation and will
continue to devote his full time to the
operation of the business. Other offi
cers are Mr. Karsten, executive vice
president; Richard C. Newlin, vice
president, and Harriette Allison, who
has been associated with Mr. Byers
and Bankers Service Company for
many years, has been elected secre
tary.
Mr. Karsten is president and the
managing executive of the Andrew
Savings Bank, Andrew, Iowa. Prior
to acquiring controlling stock in the
Andrew Savings Bank, he was presi-

Moines, Iowa, announced April 15 that
Myron E. Karsten of Maquoketa,
Iowa, and associates have purchased
the operating assets of the company
and have set up a new corporation,
Bankers Service Corporation, which
will office at 1301 Register and Trib
une Building and, like the old corpo
ration, will devote its entire time to
negotiating the sale of banks and sup
plying experienced bank executives
and other bank personnel.
Mr. Byers has been elected presi-

H. H. BYER S

M. E. K A R S T E N

dent of the First National Bank of
Fleming, Colo., and continues to serve
as an officer and director of the latter
bank which is now managed by his
father, E. A. Karsten.
Mr. Karsten’s family will remain in
Maquoketa for the present but Mr.
Karsten will devote the major portion
of his time to Bankers Service Corpo
ration and, along with Mr. Byers,
plans to attend most of the bank con
ventions in the central and midwestern states.

Acquires Strauss Lock

BERNARD D. MILLER
Assistant
Ik . Vice President

John Mosler, president, Mosler Safe
Company has announced that Mosler
has acquired the Strauss Lock Com
pany, Des Moines. It will be operated
as the Mosler-Strauss division of the
Mosler Safe Company. Harold Stite,
general manager, will continue in that
capacity. E. Q. Strauss, who founded
the firm 40 years ago, will remain as
a consultant.
The Strauss Lock Company has
been active in wholesale and retail
sales of safes and other security
equipment. It offers a full service
facility for financial, industrial and
commercial institutions, covering the
greater Iowa area.

Takes Chicago Post
The Royal Bank of Canada an
nounces the appointment of T. C.
Marshall as correspondent in Chi
cago, succeeding J. K. Moore who
moves to a senior post with the dis
trict general manager’s department,
Toronto, Ont.
Mr. Marshall is succeeded as spe
cial representative in Dallas, Tex.,
by H. S. Nelson, for the past three
years manager of the bank’s 8th &
Centre branch in Calgary, Alberta.

H$88888888N8888888(888Mt8S

inliiiiiiiiHin
n
iiiflniii

See you at the
IOWA
GROUP

DroversNationalBank
STREET

ASHLAND

CHICAG O,

AVENUE

ILLIN O IS

YARDS

60609

M E M B E R FEDERAL D EPO SIT IN S U R A N C E C O R P O R A TIO N

Northwestern

Banker ,

May,

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

A.B.A. President Marries

MEETINGS

47th

I
V

7-7000

Reno Odlin, president of The Amer
ican Bankers Association, and Mrs.
Beatrice Reno Marshall were married
on February 13 in Las Vegas, Nev.
Mrs. Odlin, who spent her childhood
with the Odlin family, is a graduate
of the University of Washington and
for the last several years has been
associated with Blyth & Company of
San Francisco, in charge of personnel.

4
4

1965
V*

113

This is the First National Bank of Freeport
Freeport Illinois

This is
their “office”
in
New York

Mr. V. G. Elvey, President
First National Bank
of Freeport
Freeport, Illinois

Like many banks of all sizes, the First National Bank of
Freeport, Freeport, Illinois, has a New York “ office”

and know-how of our staff are always ready to help the

through its correspondent relationship with National City.

can your bank get these same benefits? Write or call our

Not only in New York but in 39 countries on 5 continents

Correspondent Bank Department (Area Code 212 559-4832)

where National City branches are located, the experience

and we will be pleased to visit you.

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

F IR S T

First National Bank of Freeport serve its customers. How

N A T IO N A L C IT Y B A N K
Member Federal Deposit Insurance Corporation

Uptown Headquarters: 399 Park Avenue

Banker ,

May,

1965

114

Iowa News

Council M u ffs H o sts C rou p .»
OUNCIL BLUFFS, an outstand
ing transportation center, will
play host Tuesday, May 4, to the an
nual meeting of Group 5 of the Iowa
Bankers Association.
Transportation is the key word in
this attractive southwest Iowa city.
It will soon be a junction of both a
north-south and an east-west inter
state highway system and four fed
eral highways and four state highays junction there at present.
A rail center since Abraham Lin
coln designated the community as
the eastern terminus of the Union
Pacific Railroad, Council Bluffs is
now the fifth largest rail center in
the nation, employing approximately
2,600 persons.
In addition, the
city will soon be
served by a 9foot channel on
th e M i s s o u r i
River. Consider
able barge traffic
is a l r e a d y acaccommodated by
the 614-foot chan
nel.
Air transportaE.
E. G.
G. N
n IE
ie L
lS
sE
eN
n
tion is another
plus factor. The city is served by Epply Airfield, just across the river,
with 47 flights daily 15 minutes from
downtown.
Three large truck lines have located
in Council Bluffs during the past year.
A fourth set up operations last May
to transport autos from piggyback un

W on ’t

you

loading facilities of the Milwaukee
Railroad.
Council Bluffs leaders are planning
for something of a boom. The city’s
Industrial Foundation, working with
the Chamber of Commerce, has pur
chased and developed a 112-acre indus
trial park on which five firms have
located in the past 18 months. More
than 2,000 acres of river-highwayrailroad oriented sites have been
planned and platted on other sites
under option by the Foundation.
According to the city’s business
leaders, “all systems are go” in Coun
cil Bluffs. Other factors are evident,
but transportation holds the key to
an apparently bright future.
Hosts for the meeting will be the
State Savings Bank, Council Bluffs
Savings Bank and First National
Bank of Council Bluffs. The complete
program follows:
10:00 Registration and Visiting — Ho
tel Chieftain Lobby.
P.M.
12:15 Luncheon—Hotel Chieftain.
12:20 Invocation — Rev. Curtis E.
Heide.
1:15 Call to Order—Eldon G. Niel
sen, Vice President, State Sav
ings Bank, Council Bluffs, and
Chairman, Group 5.
1:20 Welcome—Pete A. Pakey, City
Manager, Council Bluffs.
1:25 Observations and Introduction
of Guests—Eldon G. Nielsen.
1:35 Dance Routine—Noreen Soren
son.
2:00 “ Observations on the Current

drop

u s w h ile y o u 'r e in
ou r c ity ? W e 'l l be
lo o k in g f o r y o u .

W hen you are in Council Bluffs for the Group 5 meeting why not
take a few minutes and stop in and visit with us? Our courteous
officers and staff will be pleased to discuss banking operations with
you. W e will consider it a privilege to offer assistance. Make our
bank your bank . . . anytim e!

COUNCIL BLUFFS SAVINGS BANK
COUNCIL BLUFFS, IOW A
M e m b e r F e d e r a l D e p o s it I n s u r a n c e C o r p o r a t io n

Northwestern

Banker,

May,

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

1965

2:15

2:30

3:25

3:40

3:55
4:15
4:25
5:30
7:00

Banking Scene” — E. Lelancl
Ballou, President, Iowa Bank
ers Association and President,
Security Trust and Savings
Bank, Storm Lake.
“Verifications and G e n e r a l
Bank Problems”—John Chrystal, Iowa Superintendent of
Banking and President, Iowa
Savings Bank, Coon Rapids.
“You Can’t Be Just a Little
Bit” — John N. Christianson,
Head, Christianson and Son,
Sales, Marketing and Commu
nications C o n s u l t i n g Firm,
Scottsdale, Arizona.
“How Small Business Invest
ment Companies Can Be Help
ful to Bankers”—Einar John
son, Midwest Area Coordina
tor, Investment Division, Small
Business Administration, Chi
cago.
“Foundation f o r Commercial
Banks”—M. M. McMichael, Jr.,
Vice P r e s i d e n t , Iowa-Des
Moines National B a n k , Des
Moines a n d I o w a Director,
Foundation f o r Commercial
Banks.
“ Talk”—Frank Warner, Secre
tary, Iowa Bankers Association,
Des Moines.
Election of Officers.
Conference of County Officers—
Pioneer Room, Hotel Chieftain.
Social Hour—T e r r a c e Room
and Lounge, Hotel Chieftain.
Banquet—B a 11 r o o m , Hotel
Chieftain.
Entertainment.

Ladies’ Program

P.M.
12:30 Terrace Lounge — Hotel Chief
tain.
1:30 Welcome—Mrs. Charles R. Han
nan.
1:35 Fashions—Joe Smith & Compa
ny, Council Bluffs.
Models—Nancy Bounds Studio.

Northern Trust P rom otion
Following a meeting of the board of
directors recently, T h e No r t he r n
Trust Company announced a number
of officer promotions and appoint
ments.
Nick Tourlas was promoted to man
ager, loan division, in the operating
department.
Newly-appointed officers were Rob
ert P. Marshcall, assistant sesretary in
the personal trust department; Robert
K. Kirkbride, assistant secretary in
the trust investment division; John S.
Sutfin, assistant manager, tellers’ divi
sion, operating department; and John
H. Robinson, assistant manager, gen
eral accounting.

-4.

115

The Bankers of Group 5

| And Their Friends
|

Are Cordially Invited . . .

GROUP 5
=•••••••<

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

Tuesday, May 4

••••••••••••••••

C O U N C IL B L U F F S

Attend our annual meeting and listen

to answers and suggestions which will he

of help to you and your customers. Profit
from the experience of others and learn

up-to-date information on banking problems.

. . . Your Hosts

First National Bank

State Savings Bank

Council Bluffs Savings Bank

Northwestern

Banker ,

May,

J965

116

Iowa News

twrnup G M e e tin g a t P e r r y
ERRY, Iowa, a city which has
grown to a population of approxi
mately 7,000 persons, will host the an
nual meeting of Group 6, Iowa Bank
ers Association, Wednesday, May 5, at
the Perry Golf and Country Club.
Within the community are 21 indus
tries and 300 professional and busi
ness houses which have contributed
to the progress of the community’s
activities.

H. E. H IL L

W . A. L A N E , JR.

Among Perry’s attributes are the
Chicago Northwestern Railroad and
the Chicago, Milwaukee, St. Paul and
Pacific Railroad, Perry State Bank and
the First National Bank with total de
posits of approximately $16 million,
The Perry Daily Chief newspaper and
KDLS Radio.
The city boasts a completely new

THE CREST OF

45-bed Dallas County Hospital and the
Perry Community School, a high
school completed in 1960.
The Perry Golf and Country Club,
site of this year’s convention, includes
an excellent nine hole course as well
as a newly-remodeled club house and
a new swimming pool.
The community also has a $100,000
public swimming pool.
Also for the purpose of public rec
reation, the city claims 38-acre Patee
Park.
The Dallas County Bankers Associa
tion will host the annual meeting.
The complete program follows:
A.M.
11:00 Registration — Golf earlier, if
desired.
P.M.
12:30 Buffet Luncheon
2:00 Call to Order—W. A. Lane, Jr.,
Chairman, Group 6 and Execu
tive Vice President, Security
Savings Bank, Marshalltown.
2:05 Invocation-—Rev. Roy A. Wil
son, First Presbyterian Church,
Perry.
2:10 “Observations on the Current
Banking Scene” — E. Leland
Ballou, President, Iowa Bank
ers Association and President,

G O O D LIVIN G

2:25

2:40

3:10

3:40

4:10
4:30
5:00
6:00

Security Trust and Savings
Bank, Storm Lake.
“Verifications and G e n e r a l
Bank Problems”—John Chrystal, State Superintendent of
Banking, Des Moines, and Pressident, Iowa Savings Bank,
Coon Rapids.
“The Foundation for Commer
cial Banks”—M. M. McMichael,
Jr., Vice President, lowa-Des
Moines National Bank, Des
Moines, and Iowa State Direc
tor for Foundation for Com
mercial Banks.
“Foreign
Trade—Its Impor
tance to All of Us”—E. Howard
Hill, Past President, Iowa Farm
Bureau Federation and Direc
tor, Valley Bank and Trust
Company, Des Moines.
“ Live and Dressed Beef Fu
tures” — Jim Kinney, Account
Ex e c u t i v e , Merrill, Ly nc h,
Pierce, Fenner & Smith, Inc.,
Des Moines.
Remarks—Frank Warner, Sec
retary, Iowa Bankers Associa
tion.
County Officers Conference.
Social Hour — Music by The
Three C’s.
Banquet.
Address—“The Heritage of Dis
agreement”—J. W. Christian
son, Christianson & Son, Scotts
dale, Arizona.

Ladies’ Program

P.M.
2:00

M IR A M A R

“ Life in Viet Nam” — Mrs.
Roger Lienbach.
Bridge, Golf and Cards.

-A

S A N T A M O N IC A
CALIFORNIA

"Where Wilshire Boulevard Meets the Sea"
Atop the Palisades overlooking the blue
Pacific • The Miramar features 400 guest
rooms, bungalows and suites in a tropical
garden setting • Ideal banquet and con
vention facilities • Superb cuisine •
Dancing nitely • Home of "THE TIKI-JO"
famous Polynesian Restaurant • Attend
ant parking
Northwestern Banker, May, 1965

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

Leaders are mostly collegetrained. But to do this job of train
ing and educating, our colleges need
help — because quality education costs
money. College is Am erica’s best friend.
G ive to the college of your choice
—keep our lead ers coming.
P u b lis h e d as a p u b lic s e rv ic e in co o p e ra tio n
w ith T h e A d v e rtis in g C o u n cil
and th e C o u n cil fo r F in a n c ia l A id to E d u catio n

Iowa News

lìraup

3 la

meeting of Group 3,
T HEIowaannual
Bankers Association, will
be held Thursday, May 6, at Clear
Lake, according to John McWhirter,
ac t i ng president
of Group 3 and
president of the
State Bank of Al
lison.
A l t h o u g h the
entertainment is
n o t specified in
the program, as
is the c u s t o m
wi t h Gr o up 3
c o nv e nt i o n, the
c o mmi t t e e has
again obtained entertainers recogniz
able by name by their appearances on
the Ed Sullivan Show and other tele
vision productions.
The program, in its entirety, fol
lows:
A.M.
10:00 R e g is t r a t io n —Lobby of Surf
Ballroom.
12:00 Ladies’ Luncheon
Show—Ritz Club.

and

Christianson and Son, Sales,
Ma r k e t i ng and Communica
tions Consulting Firm, Scotts
dale, Arizona.
“Catching Up With Competi
tion”—M. M. McMichael, Jr.,
Vi c e
Pr es i dent ,
Iowa-Des
Moines Nat i onal Bank and
Iowa State Director, Founda
tion for Commercial Banks.
Remarks—Frank Warner, Sec
retary, Iowa Bankers Associa
tions, Des Moines.

W OWIE!

5:00 Bacchanalian Symposium.
6:30 Witke’s Famous Smorgasbord
Banquet.
8:00 Entertainment Featuring Na
tionally Known Headliners.
10:00 Da nc i ng to Jules He r ma n
Orchestra.

New Bank Opened
Open house was scheduled April 27
at Houghton where the Houghton
State Bank has moved into its new
bank building. Among the features
of the Colonial-styled one-story bank
ing house is a spacious community
room.

LOOK AT THIS!

They're coming by car—
They're coming by plane—
They're coming by train—
Maybe even by boat and pony express

WHERE?

TO THE GROUP 3 MEETING at the

Beautiful Surf Ballroom, Clear Lake, Iowa
THURSDAY, MAY 6, 1965

Style

P.M.
1:15 Call to Order—John McWhir
ter, Acting President, Group 3
and President, State Bank of
Allison.
Invocation.
Address of Welcome—Hon. B.
C. Myhr, Mayor of Clear Lake.
Response — Robert H. Isensee,
President, United Home Bank
and Trust Company, Mason
City.
In Memoriam—Honoring Kermit S. Paulson, Deceased 19641965 Chairman, Group 3.
“Observations on the Current
Ba n k i n g Scene” — E. Leland
Ballou, President, Iowa Bank
ers Association and President,
Security Trust and Savings
Bank, Storm Lake.
“Verifications and G e n e r a l
Bank Problems” — John Chrystal, State Superintendent of
Banking, Des Moines, and Pres
ident, Iowa Savings Bank, Coon
Rapids.
“How to Tell a Phony”—Rich
ard A. Roth, Special Agent in
Charge, United States Secret
Service, Omaha.
Report of Nominating Commit
tee and Election of Officers.
“ Roots of Our Civilization”—
J. N. Chr i s t i ans o n, Head,

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

Italie

117

IF YOU W ANT TO KNOW W H Y . . .
Ask the Banker and his wife who have "BEEN THERE"
ATTEND THIS YEAR AND YOU'LL NEVER MISS!
C O M E PRE P AR E D T O —

★

C H EW , CH A TTER AND C H O O S E
at the Ladies Luncheon and Style Show

★

LISTEN A N D LEA RN
at the Afternoon Program
SIP A N D DIP
at the Social Hour
C H A W AND JA W
at the Smorgasbord Banquet
A M A Z E A N D A PPLA U D
at the All-Star Show
S W IN G A N D S W A Y
with a Top Name Dance Band
C O N C E N T R A T E A N D C O L L E C T (Maybe)
One of the Valuable Door Prizes

★
★
★
★
★

You are cordially invited to attend and bring your Officers,
Employees, Directors, W ives and Escorts
BE YOUNG AGAIN!

FORGET YOUR WORRIES FOR A DAY!

It Is Later Than You Think
Your Hosts
FRANKLIN COUNTY BANKERS ASSOCIATION
HANCOCK COUNTY BANKERS ASSOCIATION
HARDIN COUNTY BANKERS ASSOCIATION

Write for Advance Registration Form
and Further Information to
GROUP 3 BANKERS COMMITTEE, P. O. Box 8, CLEAR LAKE, IA.
Northwestern

Banker ,

May,

1965

118

Iowa News

U roup

A Frank
look
at trust
problems...

Frank Price, Senior Vice Presi
dent and head of La Salle’s Trust
Department, is an authority on
the operation of bank trust de
partments. H e ’s a man bankers
can look to when they want an
swers to their own trust problems.
Need F ra n k ’s help? You can
call him at STate 2-5200 (Area
Code 312). And you’ll find him
at La Salle National Bank, 135
S. La Salle St., Chicago, Illinois
60690. M em b er F D IC . Com
plete Trust Services.

Northwestern

Banker ,

May,

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

7965

3 Meet31 aif 7

HE New Inn on Lake West Okoboji will be the scene of the an
nual meeting of Group 2, Iowa Bank
ers Association, as four Spirit Lake
area banks host the annual conclave.
Among the host
banks are Fi r st
Nat i o na l Bank
and State Bank,
bot h in Spi ri t
Lake; Dickinson
Co unt y Savings
Bank, Mi l f or d;
and S e c u r i t y
State Bank, Lake
Park.
The entire pro
R. D. D IX O N
gram follows:
A.M.
10:00 R e g i s t r a t i o n —The New Inn
Lobby.
11:00 Business Meeting— Federation
of County Bankers Association,
Iowa Junior Bankers Associa
tion, Officers and Members of
Group 2—New Inn.
P.M.
12:30 Luncheon
2:00 Call to Order—Robert D. Dixon,
Chairman Group 2 and Presi
dent, Rolfe State Bank, Rolfe.
Invocation—Rev. B. J. Swede,
First P r e s b y t e r i a n Church,
Spirit Lake.
2:05 Welcome—Peter B. Narey, At
torney, Spirit Lake.
2:10 “Observations on the Current
Banking Scene” — E. Le l and
Ballou, President, Iowa Bank
ers Association and President,
Security Trust and Savi ngs
Bank, Storm Lake.
2:30 “Verification and General Bank
Problems” — Joh n Chrystal ,
State Superintendent of Bank
ing and President, Iowa Sav
ings Bank, Coon Rapids.
3:00 “F o u n d a t i o n for Commercial
Banks” — M. M. McMichael,

3:40
3:55

4:40
5:00
6:15

Vi c e Presi dent, I owa- Des
Moines National Bank, Des
Moines, and Iowa State Direc
tor, Foundation for Commercial
Banks.
M u s i c — “The Choralaires,”
Spirit Lake High School.
“A Case for Laughter”—J. N.
Christenson, Christenson and
Son, Sales, Marketing and Com
munications Consultants, Scotts
dale, Ariz.
Remarks—Frank Warner, Sec
retary, Iowa Bankers Associa
tion, Des Moines.
Social Hour—Dillon Hall, The
New Inn.
Dinner—Dillon Hall, The New
Inn.

}

Ladies’ Program

A.M.
10:00 Registration.
P.M.
12:30 Luncheon—The New Inn.
1:45 “Foot in the Mouth” — Don
Stone, KITV, Sioux City.

4
4

C. E. Bradley
C. E. Bradley, 83, retired Clarinda
banker, died last month in a Clarinda
hospital. He had been a banker in
Clarinda and Gravity for 50 years.
Mr. Bradley was president fo the Page
County State Bank in Clarinda until
his retirement at year-end in 1963
when he sold his interests to Floyd
Whitmore of Corning.

New Dana Office Manager
Harland Dean Stark is the new of
fice manager of the Dana office of the
Jefferson State Bank, Jefferson. He
will assume the duties of Joe DeBoest,
who resigned to accept a job in Straw
berry Point. Mr. Stark has been voca
tional agricultural instructor in the
Lynnville-Sully schools for the past
nine years.

fSaisr Funds fo r Kunh
Iowa National
T HE
Company, Dubuque,

Investment
has offered
1,827,000 shares of its stock to Iowans
at $1 per share in an effort to accu
mulate funds to establish subsidiaries
in the financial and real estate fields.
The company plans to establish a
new national bank in Dubuque. The
application for the charter is pend
ing.
The organization has also estab
lished a loan subsidiary, Iowa Nation
al Industrial Loan Company. How
ever, the loan company is not yet
operational.

According to reports, the parent
company intends to invest $850,000 in
stock in the bank, which will give
the organization approximately 80 per
cent ownership of the financial insti
tution.
The balance of the bank’s stock
would be held by seven Dubuque men
who would serve as the bank’s direc
tors. They are Laverne J. Schlitz,
Robert H. Wahlert, Arthur Roth, Jr.,
Dr. Donovan F. Ward, Harold F. Rey
nolds, John S. Schlitz and Harold J.
Nachtman.

Iowa News

O eiw ein H o sts U roup i'o u v
will play host to over
OELWEIN
300 bankers who will attend the
Group 4 meeting Tuesday, May 18.
The business meeting will be held
downtown at the Grand Theater and
the banquet will be served in the new
Sacred Heart Gymnasium. The bank
ers’ ladies will have their luncheon at
the Pine Lodge.
The bankers will have an opportu
nity to join over 2,000 employees of
Oelwein’s 16 industries in shopping in
the largest retail shopping area in
northeast Iowa. The 9,000 residents
will boast over $750,000 of improve
ments in its public and parochial
schools by the end of 1965.
Some of the additional improve
ments scheduled for 1965 or just com
pleted are: A nine-hole golf course
and two new country clubs, an 81-bed
complete service rest home, a new
Lutheran Church, widening on High
way 3 and over $1,000,000 of down
town remodeling.
The city has maintained its steady
growth by cooperating with interested
individuals and industries to add to
its already diversified industrial com
plex. Synonymous with Oelwein’s his
tory are the Oelwein Chemical Com
pany and the headquarters of the
Chicago Great Western Railway. Re
cent additions include Donaldsons and
Speedy Manufacturing Company.
Oelwein proudly presents itself as
a 100 per cent midwestern city offer
ing individuals, families and indus
tries a complete compliment of the

necessary ingredients necessary for
community satisfaction.

L. F. K AN E

F. M IL L E R

4 bankers, Iowa Bankers
GROUP
Association, will gather at Oel
wein Tuesday, May 18, for the organ
ization’s annual meeting.
The program has been scheduled as
follows:
A.M.
9:30 Registration—Grand Theatre.
10:30 County Officers Meeting—Town
Room, Hotel Meeley.
P.M.
1:00 Call to Order—Leo F. Kane,
Chairman, Group 4 and Vice
President, American Trust and
Savings Bank, Dubuque.
1:10 Invocation.

119

1:15 Welcome—Ed McCarthy, May
or of Oelwein.
1:30 “Foundation for Commercial
Banks”—M. M. McMichael, Jr.,
Vice P r e s i d e n t , Iowa-Des
Moines National Bank, Des
Moines, and Iowa State Direc
tor, Foundation for Commercial
Banks.
2:00 “ Observations on the Current
Banking S c e n e ’ ’—E. Leland
Ballou, President, Iowa Bank
ers Association and President,
Security Trust and Savings
Bank, Storm Lake.
2:15 “Verification and General Bank
Problems”—John C h r y s t a l ,
State Superintendent of Banks
and President, Iowa Savings
Bank, Coon Rapids.
2:30 “How Small Business Invest
ment Companies Can Be Help
ful to Bankers”—Einar John
son, Midwest Area Coordinator,
Investment Division, S m a l l
Business Administration, Chi
cago.
3:15 “ Iowa C o m m e r c i a l Code”—
Frank Miller, Attorney, De
corah.
3:50 Remarks—Frank Warner, Sec
retary, Iowa Bankers Associa
tion.
5:30 Social Hour—Elks Lodge.
6:30 Banquet—Sacred Heart Church.

READY NOW
IOWA-NEBRASKA
BANK DIRECTORY
‘P u blished In/
No r t h w e s t e r n B a n k e r
D E S M O IN E S

COMPLETE INFORMATION

You Are Invited to Oelwein
Group 4-Tuesday-M ay 18

ON A L L B ANKS IN

IOWA and NEBRASKA
ACCUR ATEDEPENDABLEPOCKET S IZ E -

The completely re-edited 1965 lowa-Nebraska Bank Directory is now ready. Up
to date listings of officers, statement
figures, and other vital facts about all
Iowa and Nebraska Banks. Plus informa
tion about leading banks in the Nation's
most important cities. Still only $4.00
per copy. W rite the NORTHWESTERN
BANKER today for your copy. The ad
dress is 306 Fifteenth Street, Des Moines,
Iowa.

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Federal Reserve Bank of St. Louis

Bankers of Fayette County are most happy to extend an in
vitation to the bankers in Group 4 and their friends to meet
in Oelwein on Tuesday, May I 8.
Extensive pians are being made now for an outstanding pro
gram. Let's all attend, and remember to bring your wives
and employees.
Members F a y e tt e

County

Bankers

Associ at ion

A rlingto n State Bank, A rlingto n
M aynard Savings Bank, Maynard
Farmers Savings Bank, Clerm ont
First N a tion al Bank, Oelwein
Elgin State Bank, Elgin
Oelwein S tate Bank, Oelwein
State Bank o f Fayette, Fayette
Oran Savings Bank, Oran
Citizens Savings Bank, Hawkeye
State Bank o f Lawler, Waucoma Office
The First N ational Bank, West Union
Northwestern

Banker,

May,

1965

120

Iowa News

G roup /i it

Meetsa t

of Group 8 will meet in
BANKERS
Maquoketa Wednesday, May 19.
Golf privileges
will be extended
to all registered
bankers and their
guests. The la
dies will have an
o p p o r t u n i t y to
play either golf
or bridge at the
Co u n t r y C l u b
during the after
noon. The com
plete p r o g r a m
will be as follows:

A.M.
9:30-12 Registration at Lakehurst
(one mile west oc the city).
P.M.
12:15 Luncheon at Lakehurst.
1:00 Meeting called to order by Ed
H. Jorgenson, vice president,
City National Bank, Clinton,
and chairman of Group 8.
Invocation by Father P. E.
Carstarphen, St. Marks Episco
pal Church, Maquoketa.
Welcome by Lowell E. Haas,
mayor of Maquoketa.
Observations by Leland Ballou,
president of Iowa Bankers As-

sociation.
Verification and Bank Audits
by John Chrystal, superintend
ent of Iowa Bankers Associa
tion.
Foundation f o r Commercial
Banks, M. M. McMichael, state
chairman for the Foundation
and vice president, Iowa-Des
Moines National Bank.
Address by
Hemarks by Frank Warner, sec
retary, Iowa Bankers Associa
tion.
Adjournment.
4:15 County officers’ meeting.
5:00 Social Hour at Maquo k e t a
Country Club.
8:00 Buffet dinner at Maquoketa
Country Club. Entertainment
by the Wendell Eggers Trio,
Clinton.

Burroughs Earnings Up
Murroughs Corporation reported an
increase of 45 per cent in net earnings
for the first quarter over the same
period last year.
Indicated net earnings were $2,778,000 compared with $1,910,000 in 1964.
Per share earnings based on the aver
age number of shares outstanding
were 38 cents against 26 cents last
year.

MINNEAPOLIS
IT'S THE

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if ^ The MOTOR HOTEL ^ *
if
with the DOME
if

May 1, 1965

¡LINTON Æ
NATIONAL
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BANK

Six t h A v e ., S.

CLINTON, IOWA
M E M B E R FE D ER AL RESERVE SY S TE M
M E M B E R FE D E R A L D E P O S IT IN S U R A N C E C O R P O R A T IO N

Northwestern Banker, May, 1965

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Federal Reserve Bank of St. Louis

121

See

Y o u a t th e G r o u p M e e tin g s

Focus On
American Trust
And Dubuque!
T h e N a tu r a l Hub For C o rres p o n d e n t B a n k
in g S e rv ic e In T h e T r i-S ta te A rea

INVESTIGATE THE ADVANTAGES OF THE LOCAL
IZED SERVICE OF A CITY BANK. The trio from Amer

CHRISTY
ARMSTRONG

LEO
KANE

LEO
SCHLUETER

" A t Y o u r S e rv ic e ” a t th e . . .

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Federal Reserve Bank of St. Louis

ican Trust naturally know the industrial and agricultural
conditions of your local area. Their knowledge combined
with American Trust's complete banking facilities and
convenient location, allows banks in the Tri-State Area
to benefit from the fastest, most efficient correspondent
banking service available. Call 582-1841 for immediate,
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9TH AND

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Northwestern Banker, May, 7965

122

Iowa News

Tam n to H ost ttroop Seven
AMA, a thriving center of indus
try and the home of approximate
ly 3,000 persons, will offer its facilities
to visiting bankers scheduled to con
gregate there Thursday, May 20, for
the annual meeting of Group 7, Iowa
Bankers Association.
Site of the annual convention will
be the attractive
Tama Co unt r y
Cl ub whi c h
boasts an excell e n t ni ne- hol e
grass - green
course which will
be av ai l abl e to
visiting bankers
t h r o u g h o u t the
day.
Ta ma has
j. h . l e s s e n h o p
proved itself at
tractive to industry. Despite its rela
tively small size, it is the home of a
Packaging Corporation of American
plant which ma n u f a c t u r e s paper
board. In addition, Hayward Manu
facturing Company, p r o d u c e r s of
aluminum windows and doors, oper
ates a plant in the community as does
Bituminous Products Company, manu
facturers of asphalt construction prod
ucts.
The town is served by two main
line railroads—the North Western and
the Milwaukee — and two important
highways—No. 63 and Highway 30.
Adrian M. Neil, president of the
Tama State Bank, is in charge of the
annual meeting. John H. Lessenhop,
president and cashier, Walker State
Bank, Walker, is the Group 7 chair
man and Reid C. Giese, cashier, First
National Bank, Sumner, is the Group
7 secretary.
The program for the meeting is as
follows:

Your assurance
of speedy,
accurate
correspondent
service

COMPLETE FACILITIES TO
SAVE YOU VALUABLE TIME
ON ALL ITEMS AND COLLEC
TIONS

NATIONAL BANK
OF WATERLOO
1 1 0 EAST PARK AVE NUE

WATERLOO,
PHONE

2 3 5 -0 3 3 1

(A re a

I OWA
C ode

319)

MEM BER
F e d e r a l D e p o s it I n s u r a n c e C o r p o r a t io n
F e d e r a l R e s e rv e S y s te m

A.M.
11:00 Registration — Tama Country
Club.
Luncheon.
P.M.
1:30 Call to Order—John H. Lessen
hop, chairman Group 7 and
president and cashier, Walker
State Bank, Walker.
“Observations on the Current
Banking Scene” — E. Leland
Ballou, president, Iowa Bank
ers Association and president,
Security Trust and Savings
Bank, Storm Lake.
“Verification and General Bank
Problems” — John Chrystal,
State Superintendent of Bank
ing and president, Iowa Sav
ings Bank, Coon Rapids.

“Foundation f o r Commercial
Banks”—M. M. McMichael, Jr.,
vice president, Iowa-Des Moines
National Bank, Des Moines,
and Iowa State Director, Foun
dation for Commercial Banks.
Remarks—Frank Warner, Sec
retary, Iowa Bankers Associa
tion, Des Moines.
5:00 Social Hour — Tama Country
Club (time approximate).
6:00 Dinner — St. Patrick’s School,
Tama (time approximate).
“Vertigo and the Vault”—J. N.
Christianson, Head, Christian
son and Son, Sales, Marketing
and Communications Consult
ing Firm, Scottsdale, Ariz.
Adjournment.

INDEPENDENT BANKERS . . .
(Continued from page 38)
areas adjoining Albany, New York.
The IBA called the service “mobile
branching” and said the ruling under
cuts banking associations protests to
the Federal Home Loan Bank Board
about its proposed regulations for
establishing mobile branches.
• Proposed a graduated maximum
reserve for bad debts “to afford the
greatest protection to the smaller
units of the banking system that
usually serve the agricultural areas of
the nation.”
• Opposed federal charters for mu
tual savings banks.
• Rejected proposals to centralize
all federal bank chartering and super
vision in one department or agency
because “further centralization of
power in one agency could have an
undesirable effect on the banking in
dustry specifically and on the public
welfare generally.”
• Reaffirmed its opposition to the
tax-sheltered status of savings and loan
associations, mutual savings banks
and credit unions and pledged con
tinued efforts to bring full tax equality
among competing financial institu
tions.

*■

-j*

■f

President’s Message

In the annual president’s message,
Mr. Stenehjem said rural bankers are
concerned about expansion of govern
ment lending in areas traditionally
served by commercial banks.
Mr. Stenehjem said he had protested
to Governor R. B. Tootell of the Farm
Credit Administration that federal
land banks and production credit as
sociations are forming a coalition to
offer a farm credit package at the

Northwestern Banker, May, 1965

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Federal Reserve Bank of St. Louis

Iowa News
expense of rural banks—both through
advertising and direct referrals.
He said he warned Mr. Tootell that
if this persists, independent bankers
will be forced to unite in a complete
farm lending service of their own,
including short, intermediate and lonterm credit. The cooperation of cor
respondent banks and insurance com
panies would be solicited, he said.
Opposes Single Agency

FDIC Director K. A. Randall said
some recent spectacular bank failures
should not stampede our country into
changing a banking system that is
sound and serves our people well. Mr.
Randall said our national financial
structure offers a range of services to
our citizens that is unequalled, and
while problems do exist, this does not
call for a complete revamping of the
system.
Mr. Randall referred specifically to
proposals for consolidating all federal
bank supervision under a single agen
cy or administrator. This would lead
to a single banking system, interstate
branching and eventually a mono
lithic structure, he said.
Mr. Randall said a few bank failures
are a small enough price to pay for
banking freedom.

123

to independent banking than the hold
ing company or even branch banking.

they are afraid of the political effects
of higher food prices, he said.

He said among the various avenues
open to small banks for automated
data processing, the one he favors
most is the wholly independent data
processing center. While this method
is not foolproof, he said, it is the
safest and, in the long run, probably
the cheapest.

“Easterners would rather have cheap
hamburger than a healthy economy,”
said the Cedar Vale, Kansas, rancher.

But, he said, smaller banks should
avoid involvement in automated pro
cessing unless they are forced into
it. The competitive threat of auto
mation to smaller banks has been
vastly overrated, he said.
Attacks Food Imports

Foreign food imports are destroying
American farm profits and pushing
America into another Great Depres
sion, a livestock industry spokesman
warned the bankers.
Bill House, immediate past pres
ident of the American Hereford Asso
ciation and second vice president of
the American National Cattlemen’s
Association, said labor and industry
both enjoy protection from foreign im
ports and have prospered enormously.
But politicians will not furnish the
same protection to agriculture because

Criticizes FHA Ranch Loans

Brooks J. Keogh, president of the
American National Cattlemen’s Asso
ciation, said cattlemen and deeply con
cerned about groups of ranchers bor
rowing large sums from the Farmers
Home Administration to purchase
large sums from the Farmers Home
Administration to purchase large
ranches.
“There is nothing wrong with small
operators wanting to get bigger, nor
for a rancher to sell his place to
anybody he wants to,” Mr. Keogh said.
“ But we fear, having heard of some
of the per-cow sales prices, that a lot
of folks are biting off more than they
can chew and that if and when the
chips are down there will be some
real problems . . . land values tum
bling, bankruptcies and so forth. But
Uncle Sam can just sit back and take
over more land.”
The Keene, North Dakota, rancher
praised Main Street bankers for their
concern for the cattle industry.—End

Hits Off-Premises Work

The small bank that turns its book
keeping over to a city correspondent
is in serious danger, the bankers were
told in an address prepared by Van
Vechten Shaffer, president of the
Guaranty Bank & Trust Company of
Cedar Rapids, Iowa. Mr. Shaffer, a
pioneer in small bank automation, was
unable to appear because of illness.
His address was presented to the con
vention by Reed Albig, chairman of
the I BA’s bank study committee and
president, The National Bank of Mc
Keesport, Pennsylvania.
Mr. Shaffer said the minute a bank
turns its bookkeeping problems over
to another bank, it becomes a captive
customer of that bank.
“First, you do no bookkeeping, so
you soon have no bookkeeping ma
chinery,” Mr. Shaffer said, “and it
will not be long thereafter until you
actually lose your bookkeeping know
how. Then you really are hooked, for
you can only get free by jumping
into some other similar arrangement,
or by starting over by yourself at
great expense. And in the process
you will have given up control of
your own reserves.”
Mr. Shaffer said correspondent book
keeping contains more real dangers

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Federal Reserve Bank of St. Louis

MUNICIPAL BONDS
FOR INVESTMENT
STATE
COUNTY
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SCHOOL
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FREE FROM M ONEYS AND CREDITS TAX IN IO W A

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Phone 326-2527

Teleptype 319-322-0026

DES MOINES OFFICES
Fleming Bldg.

Phone AT 2-1456

Teletype 515-285-4723

Northwestern Banker, May, 1965

124

Iowa News

OU a ni ira to H a st tíroiip IO
10 bankers,
GROUP
meet in Ottumwa

scheduled to
Friday, May
21, will have an opportunity to see,
first-hand, a striking example of com
munity enterprise and an attractive
“plus” in Ottumwa’s bid to attract
new industry.
A newly-opened
area, made pos
sible by river and
highway improve
ments, is t h e
Greater Ottumwa
Park, bordered on
three sides by the
lagoon formed by
cutting off an ox
bow in the Des
Moines river. The
J. J. M A R G E T
lagoon, described
as “one of the finest prospects for fu
ture development the city has had”
contains 400 acres of land which will
be industrially developed. The new
Wapello Street viaduct was recently
opened and flood control levees, a new
hydroelectric dam and water treat
ment plant were also completed with
in the past few years.
The complete program for the an
nual Group 10 meeting, Iowa Bankers
Association, follows:

M E R C H A N T S
MUT UA L

BONDING
COMPANY
U S is I

Home Office

2100 GRAND AVENUE
Des Moines, Iowa

This is Iowa’s oldest surety company.
A

progressive company with experi

enced,

conservative

management.

A.M.
8:00 Golfing Privileges — Ottumwa
Country Club.
P.M.
4:00 Group 10 Meeting — Ottumwa
Country Club.
Call to Order—John J. Marget,
Chairman Group 10 and Presi
dent, Keokuk County State
Bank, Sigourney.
“Observations on the Current
Banking S c e n e ’ ’—E. Leland
Ballou, President, Iowa Bank
ers Association and President,
Security Trust and Savings
Bank, Storm Lake.
“Verifications and General Bank
P r o b l e m s ’ ’—John Chrystal,
State Superintendent of Banks,
Des Moines, and President,
Iowa Savings Bank, Coon Rap
ids.
“Foundation for Commercial
Banks”—M. M. McMichael, Jr.,
Vice P r e s i d e n t , Iowa-Des
Moines National Bank, Des
Moines, and State Director,
Foundation f o r Commercial
Banks.
Remarks—Frank Warner, Sec
retary, Iowa Bankers Associa
tion.

Every
5 minutes,
a child is born
who will be
mentally
retarded.

5:30

Social Hour—Ottumwa Country
Club.
6:30 Buffet—Ottumwa Country Club.
“ Don’t Leave the Fiddle at the
D o o r ’ ’—J. N. Christianson,
Head, Christianson and Son,
Sales, Marketing and Commu
nications Consulting F i r m ,
Scottsdale, Ariz.
Adjournment.

Assets of U. S. Banks
Exceetl $ 4 0 0 Billion
Total assets of American banks at
the end of 1964 topped $400 billion for
the first time in history as deposits,
capital accounts and assets set new
highs for the 15th consecutive year.
Another milestone in banking his
tory was reached at year’s end as
banks for the first time were outnum
bered by branches. The number of
banks increased from 14,107 in 1963 to
14,274 in 1964, but the step-up in
branches was even larger—from 13,735 to 14,832. This gave the nation
29,106 banking locations.
These and other significant facts are
revealed by the Summary of United
States Banks in the March 1965 edi
tion of Polk’s Bank Directory.
Bank deposits on December 31, 1964,
totaled $362,925,753,658 and showed an
increase of 7.4 per cent over the corre
sponding total of $336,062,920,705 for
1963.
Capital accounts on December 31,
1964, were $34,081,537,921. This repre
sented an increase of 7.1 per cent over
the 1963 figure of $31,650,502,306.
Total bank assets at the end of 1964
were $409,531,722,231, up 8.1 per cent

-J

)

A-

W rite for the free booklet fro m th e
P resid en t’s C om m ittee on M ental
R etardation, W ashington, D. C.

W e are proud of our three hundred

Name___________________________________________

bank agents in Iowa.
'

Address_________________________________________

•

City_____________________________________________

W. W . W ARNER
President

State____________________ Zip Code_____________

M . J. C O R B IN
Vice President

Northwestern
Banker, May, J965
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Federal Reserve Bank of St. Louis

*
1

V
Published as a public service in coop
eration with The Advertising Council.

Published as a public service in
cooperation w ith The Advertising Council

Iowa News

125

F a irfa x S tu te Savi uffs

N E W F A IR F A X STATE Savings Bank offers convenience and modernity. Drive-in teller window is visible in exterior view at left.
Interior view is lobby from officer area looking toward the vault and coupon booths. The wall behind the lamp is a precast vault wall.

from the $376,243,970,725 as of Decem
ber 31, 1963.
Texas led all states in number of
banks at year’s end, with 1,054, fol
lowed by Illinois with 1,033, Minne
sota with 723, Iowa with 676, Missouri
with 645, and Kansas with 600.

FPRA Speeches Available
“Marketing Financial Services” is
featured in a new hardcover volume
just published by Financial Public Re
lations Association. The 293-page book
is a digest of principal speeches pre
sented at the organization’s late 1964
annual convention.
Considering each speech as a chap

ter, the book is a 50-chapter affair
with a text-like quality for anyone
involved in the full circle of market
ing activities—from the conception of
an idea for a financial service to the
final acceptance of that service by the
consumer.
The speeches, edited for quick read
ing and easy reference, open with a
four-part discussion on marketing in
general, “written” by the four speak
ers who opened each of the conven
tion’s general sessions. Following this
comprehensive introduction, the book
moves into specific areas of marketing
with sections on installment credit,
savings and mortgages, commercial

development, trust development, and
staff relations. The book concludes
with a report on a panel discussion of
three marketing media — newspaper,
radio and television advertising.
Copies have been sent to FPRA
member institutions. Non-members
may order it ($8) from FPRA, 120 W.
Madison Street, Chicago, 111.

A. B. Magdefrau
A. B. Magdefrau, president of the
Wayland State Bank, died recently.
He had served as president of the
bank since January, 1952, and he had
been a director since the bank was
organized in 1932. Otto F. Fray has
been named president of the bank.

You're ALWAYS Welcome
in Ottumwa
Particularly
May 21st
GROUP TEN MEETING, I.B.A.
O TTU M W A

COUNTRY

CLUB

FIRST N ATIO N A L BANK
Eldon, Iowa

FIRST N ATIO N A L BANK
O ttum w a, Iowa

SOUTH O T T U M W A SAVINGS BANK
O ttum w a, Iowa

U N IO N BANK A N D TRUST C O M PA N Y
O ttum w a, Iowa

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

Northwestern

Banker ,

May,

1965

126

Iowa News

S u perin ten d en t Stiffft In st alim ent
L oa n H a tes . L im its N eed H aising
llth Annual Conference on In
T HE
stallment Lending, sponsored by
the installment loan committee of the
Iowa Bankers Association last month,
brought a suggestion for vigorous in
stallment loan competition from John
Chrystal, state banking superintend
ent; an explanation of the recentlypassed Iowa Uniform Commercial
Code; a detailed discussion of bank
ing legislation, and explanation of a
simplified auto loan approval system.
Attending bankers began the con
ference with an afternoon of golf at
Des Moines’ Hyperion Field Club
Tuesday, April 13. A buffet supper
was held the same evening at the Ho
tel Kirkwood. Following the supper,
Jack Hall, golf professional at Hy
perion, presented a 30-minute golf
clinic followed by a question and an
swer period.
Wednesday Morning

Conferees got down to business the
following morning. The first speaker,
John Chrystal, state banking superin
tendent, suggested that banks must
realize the importance of their install
ment loan departments and must
strengthen their installment loan ac
tivities in the face of stiff competi
tion. His complete address follows:
“ In these days of 4 per cent interest
paid by banks, it is a special honor
for me to come to the meeting of the
bank installment lenders of Iowa.
Iowa banks, at the beginning of 1965,
for the first time, had deposits in ex
cess of $3 billion, an ever-increasing
percentage of which is time money.
“This has two effects. First, the
obvious cost increase, and second, a
need for interest income to offset

higher costs. This need for interest
income to some degree increases com
petition and tends to lower interest
charged by banks. It is a vicious cir
cle. To fill this breach has come an
increasingly valuable department in
banks—our hero, the installment loan
department.
“To most of us, the installment loan
department by banking history is an
innovation as is proven, I think, by
the fact that this conference is not
old. Too long, I think, we ignored a
field in banking that needed to be
filled and was filled completely, for a
time, by the finance companies. Since
World War II, banks have moved ag
gressively into the field and have
given great service in this area of
lending.
“ I have several suggestions that I
think our industry should be thinking
about in the future. One, it would
seem to me that the limit of $5,000
should be raised or eliminated as it is
not realistic in this day of very ex
pensive truck trailers, tractors and
other equipment. Also, if the very
much higher rates available to the
non-bank finance industry are proper,
then it would seem to me that 6 per
cent add-on as an upper limit of in
terest charge is too low, being, in
many cases, one-half that of the com
petitor, with the same costs of opera
tion.
“Further, the 15 per cent limit of
installment loan totals to total re
sources of a bank brings .some prob
lems to some banks in Iowa and has
led to circumvention of the law in iso
lated cases. The solution, of course,
ought to be found by the group as a
part of the Iowa Bankers Association

LE F T — Robert P. Abate, vice pres., American National Bank
and Trust, Chicago, is shown (on the left) with Edward V .
Hoffman, vice pres., First Natl., Sioux City, who is the new
Northwestern
Banker, May, J965
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Federal Reserve Bank of St. Louis

and specifics should be determined by
you people.
“But, as Superintendent of Banking,
I am more able to see these problems
than most and I am glad to have this
opportunity to bring public focus on
them.”
Uniform Code

E. W. McNeil, a Montezuma attor
ney and legal counsel to several Mont
ezuma area banks, was also featured
on the Thursday morning program
with a dissertation concerning the
Uniform Commercial Code. Mr. Mc
Neil is also a member of the Legis
lative Study Committee on the Code
which awaits only the signature of
the governor before becoming law
July 1, 1966.
Due to the complexity of the Code
and the length of its provisions, Mr.
McNeil restricted his remarks to sev
eral highlights of the new legislation.
Inasmuch as the law does not become
effective for more than a year, he said,
bankers will have sufficient time to
acquaint themselves with the partic
ulars of the law and its provisions
which will affect their day-to-day
transactions.
Wednesday Noon

The Wednesday noon session fea
tured a short address by E. Leland
Ballou, president of the Iowa Bankers
Association and president, Security
Trust and Savings Bank, Storm Lake,
and a discussion of “Foreign Trade
Potentials for Banks and Industry in
the Middle West” by Victor C. Studley, vice president, international de
partment of Commerce Trust Compa
ny, Kansas City, Mo.
Mr. Studley said Iowa exported $493
million in goods and agricultural prod
ucts abroad in 1964 and purchased
$245 million in imports the same year.
Iowa, he noted, is selling $170 per

chairman of the Installment Loan Committee. RIGHT— Victor
C. Studley, vice pres., Commerce Trust Company, Kansas City,
who spoke at the noon luncheon.

Iowa News
person in the state abroad, while the
nationwide average of dollar sales
abroad per U. S. citizen is only $114.
The state’s leading export category is
manufacturing, followed by crop prod
ucts, livestock products, and fishery
products. In other states surrounding
Iowa, manufacturing ranks only sec
ond or third. Iowa’s manufacturing
and crop products exports are greater
than Missouri’s, with fewer people
and with lesser land area.
Mr. Studley reminded his audience
of a statement once made by a British
statesman, “You can’t breathe out un
less you also breathe in,” as an ex
planation of the vital importance of
export-import trade to any country.
The Wednesday afternoon session
was the scene of an innovation this
year. In order to cover as many in
stallment lending subjects as possible,
a workshop was arranged whereby
more than a dozen tables were set up,
each for the discussion of a particular
area of installment lending. At each
table—which sat a total of approxi
mately 14 persons — was stationed a
“ Discussion Leader” who moderated
the discussion in his particular field.
Participants were free to go from ta
ble to table throughout the one and
one-half hour workshop.

127

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Chicago 90, Illinois. STate 2-5200.

Wednesday Evening

The banquet speaker, the Hon. Da
vid Stanley, Republication state sena
tor from Muscatine, gave a report on
“You and Your Legislature.” During
the course of his talk he said he’d like
to see some courageous United States
Congressmen propose that the federal
government refund 10 per cent of all
federal income taxes to the states
where collected, while at the same
time ordering the states to repeal
their state income tax laws. This
money would have no strings at
tached.
In addition, he advocated repeal of
the Iowa Moneys and Credits Tax,
stating taxes collected would show a
net gain in one or two years by keep
ing bank accounts and investments in
Iowa that now go elsewhere because
of the existing law.
Thursday Morning

At the final session of the confer
ence Thursday morning Robert P.
Abate, vice president, American Na
tional Bank and Trust Company, Chi
cago, and a veteran of 12 years with
a national finance company, explained
a time- and money-saving s y s t e m
whereby banks could approve and
disapprove, without investigation, ap
proximately 50 percent of their ap
plications for direct and indirect auto
loans.

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

MEMBER FD1C.
COMPLETE TRUST SERVICES

Northwestern Banker, May, 7965

128

Iowa News
Under the system, applications for
loans are scored according to various
criteria including age, length of time
on the job, field of endeavor, percent
age of down payments— even whether
the applicant has a savings account
and a telephone.
The system, he said, was devised
by a finance company in an effort
to standardize procedures and was
originated at great expense in terms
of money and time.
The first step taken in arranging
the system was that of collecting
thousands of bad loan cases, compiling
various criteria and attempting to un
cover correlations between criteria
and bad loans. Interestingly, he said,
there were approximately a dozen us
able correlations. Subsequently, each
criterion was awarded a “weighted”
value for use in reviewing and scor
ing loan applications.
The resultant system Mr. Abate de
scribed as “perfectly safe” as well as
tangible. With no more than a few
months experience, he said, a young
man could be placed in charge of an
office with hundreds of thousands of
dollars in outstandings. His guide
lines could he established by fixed
numerical scores attributed to loan
applications.
This “probability factor,” Mr. Abate
said, allowed his organization to elim
inate 5 per cent of its business and,
by so doing, eliminate 32 per cent of
its losses.
Within a low bracket, he noted,
applications are rejected automatical
ly. By the same token, within a
high bracket, loans are approved with
no investigation whatever. This ac
counts for approximately half the loan
applications made and saves virtually
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Northwestern

Banker ,

May,

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Federal Reserve Bank of St. Louis

1 965

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K. A. Randall was appointed chair
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Corporation by President Johnson
April 21, succeeding Joseph W. Barr,
who has been nominated by the Presi
dent as Under Secretary of the Treas
ury. Mr. Barr had served as chair
man since January 23, 1964. He will
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half the time normally expended in
studying loan applications.
With i nt angi bl e guidelines, Mr.
Abate pointed out, bankers have in
herited the reputation of being “hot
and cold” in the installment loan field.
Several repossessions generally lead
to instructions to “toughen up” a bit,
with the result that, in some cases,
perfectly good business is dr i ven
away.

Á
)
A

*
\

)

Education Loans

The Chicago bank executive also
touched upon the subject of educa
tion loans and criticized banks in
general for their failure to advertise
the fact that they make loans spe
cifically for education.
He said that most banks make wellknown the fact that they loan money
“for any good reason” but that such
a statement is not enough to gener
ate the public’s interest.
He suggested that a true “package
plan” for educational loans be devised
by banks and noted that his bank
boasts such a package and advertises
it through direct mail, school news
paper advertising and talks before
students of local high schools.
Since aggressively entering the field
of education loans, the bank has had
a loss factor of .004 percent in the
area.
Joseph D. Batten, president, Batten,
Batten, Hudson and Swab, Inc., Man
agement Consultants, Des Moi nes,
concluded the conference with a onehour address entitled, “ The Uncom
mon Man.”—End.

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I o wa N e w s

Clinton National Hants
Celebrates
Years

EXTERIO R of Clinton National at its present location

Clinton National Bank, for
T HE
mally given birth in the same is
sue of the newspaper which an
nounced President Abraham Lincoln’s
death, marked a century of service to
the Clinton community last month.
In 1865, a group of public-spirited
individuals organized the institution.
The guiding spirit in the enterprise
was W. F. Coan. W. J. Young and
Chancy Lamb also played prominent
roles.
The initial organization meeting was
held January 21, 1865, and the formal
subscription for stock was made Feb
ruary 27 of the same year. Organi
zation papers were filed and approved
by the comptroller of the currency
March 9, 1865, and Charter Number
994 was issued April 8, 1865, authoriz
ing the bank to open for business fol
lowing publication of the certificate.
It was in the April 15 issue of the
Clinton Herald that the publication
was effected. And it was the same
issue of the newspaper which carried
the news of the assassination of Pres
ident Lincoln to Clinton residents.
Original stockholders included Mr.
Coan, Mr. Young, Mr. Lamb, Isaac B.
Howe, John C. Bucher, Samuel Rand,
James A. Townsend, Thomas F. But
terfield, Loring Wheeler, Deloss W.
Eldred, William Fuller, George Beach,
William C a m p b ell and Pitkin C.
Wright.
Directors elected at that time were
Mr. Rand, Mr. Coan, Mr. Bucher, Mr.
Howe, Mr. Young, Mr. Wheeler, Mr.
Lamb, Mr. Townsend and Mr. Wright.
Directors in turn elected Mr. Coan
president and Mr. Townsend cashier.
Only six months after the bank
opened on May 1, 1865, a small frame
building at the southwest corner of
5th Avenue South and First Street, a
4 per cent dividend was declared.
Within three years the business of
the bank had reached such a volume

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

it became necessary to seek more spa
cious quarters. Directors began their
search in May of 1868. Several loca
tions in Clinton were considered, in
cluding the leasing of a corner room

OLD RECORDS of bank’s history
studied by L. J. Derflinger, pres.

free

129

of what now is the Ankeny building,
before it was decided to buy the site
at 6th Avenue South and Second
Street.
C o n s t r u c t i o n of the pretentious
three-story building began in July of
that year. At that time, the new struc
ture was considered one of the most
modern banking institutions in this
section of the Middlewest.
Keeping pace with the times, the
bank launched an extensive remodel
ing program in 1935 when W. J.
Young, Jr., was president. Many Clintonians still remember watching the
installation of a new vault with its
36-inch walls of concrete and steel and
18-inch, 30-ton door, then one of the
largest in the nation. In December,
1955, bank quarters were moved to a
new and modern building, 235 6th Ave
nue South, designed by the Bank
Building Corporation of St. Louis, Mo.

EXTERIO R of Clinton National in 1869.

12 PA G E BOOKLET

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C O N S T R U C T I O N S E R V IC E

110 EAST SEVENTH STREET . Telephone ADams 4-6641
WATERLOO, IOWA

Northwestern Banker, May, 1965

130

In the

•;

DIRECTORS’
ROOM
W hole Story
One woman to another: “ I won’t
go into all the details; in fact, I’ve al
ready told you more than I heard.”

A Matter of Taste
A man who had been going with a
girl for a number of years took her
out one night to a Chinese restaurant.
They began studying the menu and he
inquired, “How would you like your
rice . . . fried or boiled?”
She looked up at him and said very
distinctly “Thrown.”

Pets and Pets
It’s nice for children to have pets—
until the pets start having children.

Signs of Times
Slogan on window of loan shop:
“Failure is our most important prod
uct.”

I ndigestion
Did you hear about the war between
the United States and Great Britain?
Lady Bird ate a Beatle!

Idea Men
HELP WANTED: Bright young
men to think up new reasons for
raising prices.

It Can Work
Notice on wall of reducing parlor:
“ Skipping is a good way to reduce—
skipping lunch, skipping desserts. . .”

Scrooge
Hardening of the heart ages people
more quickly than hardening of the
arteries.

Hard Worker
“Why were you discharged by your
last employer?”
“ I was overly ambitious.”
“Explain, please.”
“ I wanted to take work home with
me.”
“Who was your last employer?”
“The First National Trust and Sav
ings Bank.”

A : ■ \
'•
t t t 'm .T

■A

Doane A gricultural Service, Inc............... 20
D ou glas-G u ardian W arehouse Corp. . . . 46
Downey, The C. L., C o m p a n y .................... 49
Drovers National B ank ................................ 112

■

I N D E X OF

A D V E R TISE R S
MAY, 1965
A

Acorn P rinting Company ............................ 128
A ll M akes Office Equipm ent Co................. 96
Am erican National Bank and Trust
Company of C h ic a g o ...................................107
Am erican National Bank— St. Joseph . . 95
Am erican Trust and Savings Bank—
Dubuque ........................................................... 121

It
Bank B uilding and Equipm ent
Corporation ................................................ 44-45
Bankers Service Company ..........................110
Bankers T rust Company—-Des M oines. .104
Bankers Trust Company— New Y o r k .24-25
Bank of A m erica ...................................13-14-15
Bank of M ontreal ........................................... 60
B lack Sale S y s t e m ........................................... 52
C

Capp Tow ers Motor Hotel ..........................120
Central Bank and T rust Company—
Denver ............................................................... 74
Central National Bank and Trust
Company— Des Moines ............................. 18
Central National Bank— Chicago ........... I l l
Central States H ealth and L ife Co...........131
Chase M anhattan Bank, The .................... 21
Chemical Bank New Y ork Trust Co........ 51
Chiles and Company ...................................... 82
City National Bank and Trust
Company— K ansas City ........................... 55
Clear Lake Group M e e t i n g ..........................117
Clinton National B a n k ...................................120
Commerce Trust Company—
K an sas City ................................................... 97
Continental Illinois National Bank
and Trust Company .............................. 16-17
Council Bluffs Banks ..................................... 115
Council Bluffs Savings Bank ..................... 114
Cum m ins-Chicago Corporation ................ 28

D
Davenport, F. E., and Company ..............
Dawson H ail I n s u r a n c e ...............................
DeLuxe Check Printers, In corp orated ..
Diebold, I n c o r p o r a te d ....................................

Northwestern
Banker, May, 1965
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Safety Sign
H i g h w a y sign in Connecticut:
“Driver who has one for the road
will get state trooper for a chaser.”

80
70
50
41

Farm Business Council, Incorp orated .. 99
F igge, Reginald, A s s o c ia t e s ........................128
F irst National Bank and Trust
Company of Lincoln ...........
103
F irst National Bank and Trust
Company, The— T ulsa ............................. 71
F irst National Bank in St. L o u i s ........... 29
F irst N ational Bank in Sioux C i t y ......... 89
F irst National Bank of Chicago, The . . 47
F irst N ational Bank of Denver, The . . . .77
F irst N ational Bank of K an sas City . . .
4
F irst N ational Bank of Minneapolis . . . 59
F irst National Bank of O m a h a ................ 85
F irst National Bank, The— St. J o se p h .. 88
F irst National City Bank— N ew Y o r k .. 113
F irst Nebraska S e c u r it ie s ........................... 92
F irst Stock Y ards Bank— South
St. Joseph ........................................................ 86
Foundation for Commercial Banks . . . . 11
G

Gross, K irk, Company ...................................129
II

Oelwein Group M e e t i n g ................................ 119
Old Security Insurance Company,
K an sas City ....................................................6-7
Omaha National Bank, The ...................... 83
Omaha P rinting Company ..........................100
Orchard & W ilh elm Co................................... 80
Ottum w a Group M e e t i n g .............................. 125
Ozark A ir Lines ............................................... 68
P

P uget Sound N ational Bank ....................

It
R alston Purina Company ........................... 72
Recordak Corporation ..................................
9
S

Hahne, Fred, P rinting ...................................128
H arris Trust and Savings B a n k .............. 32

I
Insured Credit Services, Inc........................
8
Iow a-D es Moines National Bank ............ 132
Iow a Pow er and L igh t C o m p a n y ........... 110
Iow a Stamp and M arking Company . . . 12

K
K irk p atrick -P e ttis Company ....................

N ational Bank of Commerce T rust
and Savings ................................................... 91
N ational Bank of South Dakota, The . . 67
N ational Bank of W aterloo, The ........... 122
N ational F idelity L ife Insurance
Company ........................................... 64, 86, 106
Northern Trust Company ...........................
3
Northw estern N ational Bank of
M inneapolis ................................................... 56
N orthw estern N ational Bank—
Sioux F a l l s ...................................................... 65

LaM onte, George, & Son ............................. 48
LaSalle N ational Bank .......................118, 127
Law rence W arehouse Company .............. 43
L eam ington H otel ........................................... 60
LeFebure Corporation .................................. 99
Live Stock N ational B ank— Sioux C ity. 62

M
M anufacturers H anover T rust Co............. 53
M arquette National B ank ........................... 66
M ercantile Trust C o m p a n y ......................... 23
Merchants M utual Bonding C o m p a n y .. 124
M erchants National Bank ...........................
2
Midland National Bank of Minneapolis 61
M iram ar H otel .................................................. 116
M osler Safe C o m p a n y .................................... 31

Scarborough and C o m p a n y .........................
Schweser, Robert E., C o m p a n y ................
Security N ational Bank, Sioux C ity. . . .
South Omaha Stockyards National
B a n k ...................................................................
Studley, Shupert T rust Investm ent
C o u n c il...............................................................

27
87
93
SI
10

Tension Envelope Corporation ................ 54
T oy N ational Bank, Sioux C i t y ................ 94

IT
United States Check Book Company . . .101
United States N ational Bank, The—
Omaha ............................................................... 18
V

V alley Bank and Trust Company—
Des M o i n e s .......................................................109
V a lley National Bank of Arizona ......... 10
V an Horne Investm ents, Inc........................ 90
W

W estern and Southern L ife Insurance
Company ........................................................... 108
W estern M utual Insurance Company . . 30
W h ite -P h illip s Co., Inc., T h e ..................... 123
Z

Ziegler, B. C., and C o m p a n y ......................

Here come

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Federal Reserve Bank of St. Louis

Central States representatives
e x p la in th e c o v e ra g e com
pletely, courteously, to your
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Customers sign an authoriza
tio n fo r checking a c c o u n t
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Bank d e d u c ts p rem ium s
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Bank sends Central States one
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Ce n t r a l States
H e a l t h * L if e Co .
of Om aha
T. LESLIE KIZER, President
CENTRAL STATES INSURANCE BUILDING
HOWARD AT 18TH STREET • OMAHA
INSURANCE UNDERWRITERS THROUGH FINANCIAL INSTITUTIONS

W ere
s h o o tin g
for a
d a te
w ith
you
f

Check Your Group Meeting Place and Date, and we’ll
look forward to seeing you there and then for informal dis
cussions on current banking practices and problems. Or—

JER R Y NELSON
Vice President

G EO R G E H A RN AG EL
Asst. Vice President

we’ll be glad to set up an appointment for a private chat, if
you prefer. And, o f course, any time we can be helpful,
please call or see us.

BEN EILDERS
Asst. Vice President

BOB BUENNEKE
Asst. Vice President

We're here to help you get what you want

IOW AD ES MOINES
Sixth and Walnut, Des Moines, Iowa • CH 3-1191

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Federal Reserve Bank of St. Louis

NATIBANK
Member Federal Deposit Insurance Corporation