Full text of The Northwestern Banker : May 2, 1966, No. 967

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Oldest Financial Journal West o f the Mississippi

May 2,1966

Des Moines, Iowa

No. 96T

Express Concern Over Employee Turnover

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“ Turnover rates for staff em­
ployees in banking are four to five
times the rates in industry and
have been climbing stea d ily.”
This statement was made by
J. Howard Laeri, v ice chairman of
the First National City Bank, New
York, before the recent Southern
Regional NABAC meeting.
Pointing out that banking, costs
can be reduced nearly $5 million
for every percentage point that the
industry can decrease turnover,
Mr. Laeri stated, “ Aside from
added co s ts , the high turnover rate
fills the road of management su c­
cession with many potholes. Per­
haps the dominant reason for the
banking mergers of the last decade
is the failure of one of the two
parties to provide for management
s u cce s s io n .”
Joseph C. White, v ice president,
The National Bank of Commerce,
New Orleans, speaking before the
same group, also emphasized the
need for management and manpower
utilization plans.
“ One of the great falla cies in
many managements today is the
encouragement of mediocrity; this
com es about through overstaffing,
reliance on mere wages as incen­
tives, failure to communicate, ab­
sence of measurement of the indi­
vidual and not expecting enough of
p eop le,” Mr. White said.
In discussing the problem of
hiring management trainees only
to see them become dissatisfied
and restless, Mr. White suggested
that, “ in most ca s e s, the restless­
ness arises from sheer boredom.”

In applying the principles of
“ manpower utilization,” Mr. White
suggested that, “ improvement be­
gins with work measurement, through
^vhich standards of performance
are set for each job. The flow of
work is then studied to determine
manpower needs for peaks and
valleys.
“ Permanent, full time staff
should be employed to meet the
minimum workloads only; part time
staff can be utilized to meet peak
requirements,”
Mr. White con ­
cluded.

Announce Presidential
Candidates for Iowa
Dale C. Smith, vice president,
Central National Bank and Trust
Company, Des Moines, and Oliver
Hansen, president, Liberty Trust
and Savings Bank, Durant, have
announced their candidacy for
president of the Iowa Bankers A s­
sociation. The election will be
held at the 80th annual state con­
vention in Des Moines, October 1619.
Mr. Smith announced his candi­
dacy prior to the 79th annual con ­
vention and withdrew from the race
in favor of Ed H. Spetman, Jr.,
president of the Council Bluffs
Savings Bank, who was elected
president.
Mr. Hansen, who has served as
chairman of Group 8, announced
his candidacy late last month and
received the endorsement of the
Cedar County Bankers A ssociation .

N ATIO N AL NEWS
NEW YORK: Herbert V. Prochnow,
president, The First National Bank
of Chicago, has been named the
1966 recipient of the Ayres Leader­
ship Award by the Board of Regents
of the Stonier Graduate School of
Banking.
PHILADELPHIA: A new $1.7 mil­
lion national advertising campaign
for the Foundation for Commercial
Banks is scheduled to start in
national magazines today, accord­
ing to Richard R. B eal, executive
director.
WASHINGTON, D .C .: The Invest­
ment Company Institute last week
contended that Comptroller of the
Currency James J. Saxon approved
illegally the creation of a mutual
fund by the First National City
Bank of New York. In a suit filed
in Federal District Court, the
Institute asked for a ruling to the
effect that Mr. Saxon exceeded his
authority in permitting a national
bank, for the first time, to sponsor
its own commingled investment
account.
WASHINGTON, D .C .: “ At least $1
billion in tax exempt municipal
bonds has been diverted to private
use for private profit through a tax
gimmick known as municipal indus­
trial financing,” according to a
letter to members of Congress sent
out last week by the Investment
Bankers A ssociation of America.
Such financing is presently author­
ized in approximately 30 states.

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denied by the Iowa Banking Board
to move the First State Bank,
Diagonal, to Mount Ayr.
MARSHALLTOWN: The Iowa Bank­
ing Board has approved a parking
lot o ffice for the Security Savings
Bank, to be located in the vicinity
of Olive and South 2nd in shopping
center. Two other banks in Marshall­
town have applications pending for
o ffice s in same area.
RED OAK: Michael K. McGrath, 29,
has accepted a position as manager
of the installment loan department
of the Houghton State Bank. He has
been local manager of A ssocia tes
Finance Company in Red Oak.

GROUP MEETINGS start this week
in Iowa as follow s: Tuesday, May 3,
Council B luffs; Wednesday, May 4,
Fort Dodge; Thursday, May 5,
Clear Lake, and Friday, May 6,
C resco.
CLINTON: Harold A. Bendixen,
president 9 f Clinton Corn Proc­
essing CQmpany, a division of
Standard Brands, has been e le c ­
ted a director of the First National
Bank.
DES MOINES: Charles E. Cox has
been named assistant manager and

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pointed women’s representative at
the new Douglas office of the
Iowa-Des Moines National Bank,
scheduled to open early this month
at 4435 Douglas Avenue.
DES MOINES: Bankers A cc e ss Com­
pany, 502 Securities Building in
Des Moines, has been established
by Carl L. Kent to provide computer
oriented service and fa cilities for
Iowa banks. The firm is designed to
serve banks whose present com­
puter facilities and opportunities
are limited by size or staff.
The company offers consulting
assistance in all areas of computer
operations, including account num­
bering for MICR, feasibility studies,
system design and analysis, pro­
gramming, conversion and imple­
mentation. L ocal area computer
centers will be organized, staffed
and operated for the exclusive
benefit of those banks willing to
participate in joint computer ven­
tures .
Mr. Kent resigned as a vice
president of Bankers Trust Com­
pany in Des Moines, as of May 1,
where he had been sin ce 1952. He
did the research and design for the
bank’s automation program and
guided
its
computer operation
through a su ccessfu l joint sharing
venture with a leading Des Moines
insurance company.
DIAGONAL: Application has been

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M em b er F e d e r a l D e p o s i t I n s u r a n c e C o r p o r a tio n

SIOUX CITY: Funeral services were
held last Wednesday for Mrs. Char­
les Walcott, who died on Monday
after an extended illn ess. Mr. Wal­
cott is vice president of the First
National Bank, Sioux City.
WOODBINE: E ffective June 1, Lew­
is L. Lowe, v ice president of the
Houghton State Bank, Red Oak, will
become president of the First Na­
tional Bank, Woodbine. Paul D.
Dunlap, president of the Houghton
State Bank, has been elected a
director of the Woodbine bank.

NEBRASKA NEWS
ALLIANCE: Lane R. Nansel, for­
mer state bank examiner, has joined
the 'Guardian State Bank as a vice
president. From 1954 to 1961, he
worked at the Seven V alleys State
Bank, Callaway.
DESHLER:
Donald
Whitlow of
Campbell, Nebraska is the new
cashier o f the Nebraska Security
Bank. He replaces C. F. Petty, who
returned to banking in Oklahoma
City.
KEARNEY: Dean H allock of Kear­
ney w ill join the First National
Bank on May 16 as assistant vice
president, replacing Jim Lutes,
who has resigned to accept a job
in the Scribner Bank.
MULLEN: Donald Stull, formerly
with the Bank of Hyannis, has
joined the Bank of Mullen as v ice
president and cashier.
OFFUTT AIR FORCE BASE: Ap­
plication has been made for a new
national bank here. Applicants
include: F .F . Nebergall, William A.
Fraser, Jr., R . Joe Dennis, John S.
Reinhart, M.Cooper Smith, MarvinG.
Schmid and Jack E. Dewey.
PLATTSMOUTH: Plattsmouth State
Bank has announced plans to build

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a C olonial-style drive-in bank on
the southeast corner of Chicago
and 4th Avenues.
TEKAMAH: Open house was held
yesterday (Sunday) in the Burt
County State Bank’ s new building.

MINNESOTA NEWS

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ALBANY: Stearns County National
Bank has purchased three properties
for the purpose of constructing a
new bank building. Hickey and Little
of Minneapolis are the architects
for the 50 by 70 brick building.
Completion is scheduled for Oct­
ober, 1966.
ANOKA: Work is scheduled to start
soon on the new building for the
First National Bank. Completion is
set for the end of 1966.
FARMINGTON: Construction has
started on the new bank building
for the First National Bank. Con­
tractor is Berglund, Johnson, Inc.,
Minneapolis.
ROCHESTER: Federal Home Loan
Bank in Washington, D.C. has
denied a branch here for the Minne­
sota Federal Savings and Loan,
located in Minneapolis. Independent
Bankers of Minnesota fought the app
on the basis that it would open the
door to branch banking.

SOUTH DAKO TA NEWS
IRENE: A surprise party was held
recently for A. E. Diefendorf, chair­
man, Farmers State Bank during
the 20th anniversary party of the
bank. Mr. Diefendorf will receive a
40-year pin at the South Dakota
Convention this year. Mr. Diefendorf’ s four sons were present for
the party. Tom and Jim are in the
bank in Irene; John is vice pres­
ident of the Security National Bank,
Sioux City, and Bob is manager of a
large credit union in Chicago.
SIOUX FALLS: William S. Baker
has been promoted from assistant
cashier to assistant vice president
of the First National Bank here.

The First National Bank of Saint Paul
SAINT PAUL, MINNESOTA 55101 - AREA CODE 612 - 221-9466

YANKTON: E .C . Schempp has been
elected auditor in addition to as­
sistant cashier at the First Dakota
National Bank.

NORTH D AKO TA NEWS
GRAND FORKS: The annual con­
vention of the North Dakota Bank­
ers A ssociation starts Wednesday,
May 4 and extends through Friday
noon, May 6. Complete convention
program appears in the May North­
western Banker.

COLORADO NEWS
BOULDER: E. L. Harrison has
been named cashier of the Mercan­
tile Bank and Trust Company. He
has been with the Second National
Bank, Saginaw, Michigan.
DENVER: First National Bank has
promoted Richard T . Counley to
assistant vice president in the
correspondent department. He was
with the First National Bank, Grand
Junction for 16 years. The bank
has also named John Mason, Jr. as
a trust officer.
DENVER: The North Denver Bank
will issue 6,000 additional shares
of common stock to increase the
bank’s capital to $1,931,000. The
bank is now increasing the size of
its present building.
DENVER: District 4 of the National
A ssociation of Supervisors of State
Banks will meet in Denver on May 9
and 10.

elected vice president and cashier
of the Colfax National Bank. He
joined the bank in March after hav­
ing been vice president and cash­
ier of the First National Bank, Salida. He succeeds Neal J. Ryan,
who is now serving as president.

MONTANA NEWS
GLENDIVE: Harry N. Dion, 83,
pioneer merchant, banker and stockman, died April 24 at his home
after an extended illn ess. He was
president of Exchange State Bank
here when he retired in 1953.
HELENA: No progress had been
made late last week in getting any
clues to the lone robber who on
April 22 held up Nels Turnquist,
president of the First National
Bank & Trust C o., in his o ffice at
gunpoint and then conducted him to
the bank vault where he made off
with $37,600.

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WYOMING NEWS
CASPER: South Dakota Corpora­
tion of Sioux F alls has acquired a

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major interest in the Wyoming Na­
tional Bank by purchasing a major
interest in Wyoming Financial Ser­
v ice s from Minnesota Enterprises,
Inc. Management will continue
under Minnesota Enterprises. J. J.
Verschoor is president of South
Dakota Corporation, and it owns
an interest in the Dakota State
Bank, Milbank.
Carl Pohlad, president of the
Marquette National Bank, is a part
of the management team for Minne­
sota Enterprises.
CASPER: Milton G. Coffman, C as­
per businessman, has been elected
chairman of the First National
Bank, succeeding W. J. Wehrli,
who has resigned, but will remain
on the board.
CHEYENNE, WYO.: K. L. McShane
has been elected chairman of the
Cheyenne National Bank.
GILLETTE: William W. Smith, v ice
president, Stockmens Bank, has
been honored for 30 years service.
RIVERTON: Harry Hays, v ice pres­
ident of the American National
Bank, has been elected president
of the State Board of Education in
Wyoming.

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No. 967 Northwestern Banker is published five times monthly by the Northwestern Banker Company, 306 Fifteenth Street, Des
Moines, Iowa 50309. Subscription 50tf per copy, $4 per year. Second cla ss postage paid at Des Moines, Iowa. Address ail mail

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