Full text of The Northwestern Banker : May 22, 1967, No. 1034
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No. 1034 Dos Moines, Iowa S & L S u p ervisor Opposes Mobile Unit App * * & * W 1 * i y Donald Duncan, supervisor of Iowa state savings and loan associ ations, has joined the opposition to an application of United Federal Savings and Loan Association of Des Moines to operate a mobile unit into l l Iowa communities. Testifying before the Federal Home Loan Bank Board in Wash ington, D.C., Mr. Duncan reported that his department has received no complaints that adequate fi nancing was unavailable in the towns to which United Federal would like to send a mobile unit P ella, Sigourney, Albia, Center ville , Osceola, Winterset, Guthrie Center, Jefferson, Humboldt, Grun dy Center and Belle Plaine. “ The mobile unit would give United Federal a competitive ad vantage that would cause erosion of state savings and loan associ ations which are not authorized to operate mobile units,” Mr. Duncan said. Dr. Wilbur R.Maki, professor of economics at Iowa State University, Ames, supported Mr. Duncan by stating before the Federal Home Loan Board that the outflow of funds from smaller Iowa communi ties to the large cities is injurious to the communities. John Chrystal, state superin tendent of banking, said that banks’ loans on homes and real estate had * ■X A* https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis increased 13% in 1966 and savings deposits had risen 4.3% in 1966. The mobile unit, he said, would be injurious to both state and national banks, which cannot operate mobile units or branches under Iowa law. Also testifying against the application was Frank A.Augustine, president of the First Federal Sav ings and Loan Association of Crestón. His association serves Winterset and Osceola. Iowa savings and loan associ ations, banks and citizens from the communities affected and near by cities are continuing to testify. They include representatives from Chariton, Osceola, Oskaloosa, Cen terville, Knoxville, Albia, P ella, Newton, Sigourney, Waterloo, Mar shalltown, Grundy Center, Hum boldt, Jefferson, Harlan, Carroll, Guthrie Center and Rock Rapids. Attack Credit Life The Nation’ s credit industry has been accused of reaping kickback profits by overcharging for required loan life insurance. Senator Philip A. Hart, Mich igan Democrat, made the charges in announcing that his antitrust and monopoly subcommittee is cur rently holding hearings on what he said was a multimillion-dollar racket. His target was insurance ________May 22,1967 programs required by lenders that would pay off the loan in the event of the borrower’ s death or dis ability. “ The investigation thus far has turned up claims that con sumers are paying $l 75-million too much a year for credit life and credit accident and health insur ance,” he said in a statement. Travel Agents Sue Comptroller BOSTON: In a key test of another of former Comptroller of the Cur rency James J. Saxon’ s authoriza tions for national banks to add new services, 42 Massachusetts travel agents have filed suit against South Shore National Bank, Quincy. ‘Backed by the American Socie ty of Travel Agents, which said it has provided “ assistance” to the plaintiffs, the suit alleges that the Comptroller’ s ruling permitting national banks to operate travel agencies is a violation of the National Bank Act. The suit was filed less than an hour after Massachusetts Gov. John A. Volpe signed into law a one-paragraph amendment to the state’ s banking code which reads: “ No bank shall engage in the business of operating a travel agency.” NORA SPRINGS: James R. Smith has joined the First State Bank as managing officer. He was for merly cashier of the Panora State Bank. The bank is owned by a group headed by M. J. Klaus, pres ident, First Security Bank and Trust Co., Charles City. JOHN D IE F E N D O R F and G EN E HAGEN Represent The Bank for Personal Service in Sioux City STRAWBERRY PO IN T: Joel Me Clure has joined the Union Trust and Savings Bank. A former Iowan, Mr. McClure has been with the Security First National Bank, Los Angeles. SECURITY NATIONAL BANK Sixth and Pierce Sioux C ity, Iow a Member FD IC Arlington State Bank, and attended nearly every Iowa convention over the past 40 years. He had formerly been associated with the City National Bank in Wichita Falls. C H R IS T Y A R M S TR O N G LEO KANE LEO SC HLUETER ‘WE H A V E W HAT YO U W A N T in a correspondent bank’ american trust an d sa v in g s b a n k 9TH AND MAIN, DUBUQUE, IOWA MEMBER: FDIC • FRS IOWA NEWS GROUP MEETINGS continue in Iowa this week as follows: Group 5, Council Bluffs, May 23; Group6, Jefferson, May 24; Group 8, Anamosa, May 25, and Group 10, Cen terville, May 26. See May issue of Northwestern Banker magazine for detailed programs. ARLINGTON: Funeral services were held last Monday for Hoyt R. Young, former president of the Iowa Bankers Association. He lived in Wichita F alls, Texas, but continued as a director of the A TLA N T IC : Work w ill start on a new drive-in bank building for the Whitney Loan and Trust Co. on or about July 1. A group headed by Dale Ball, president, First Na tional Bank, Council Bluffs, re cently purchased a majority of the stock in the Whitney Corporation of Iowa, which in turn owns control of the Whitney Bank. CLINTON: Open house w ill be held by the Iowa State Savings Bank, May 24-26 in observance of a new addition and remodeling program. CREIGHTON: Joe Radosti has been elected cashier of the American National Bank to replace the late D. A. Van Deveer. LINCOLN: National Bank of Com merce has announced lowering the rate on consumer-type CD’ s to 4y2% for 90 days. O G A LLALA : Pete Hansen has been advanced from assistant cashier to cashier of the Keith County Bank. Mel Adams, who was pres ident and cashier, continues as president. ELDORA: First National Bank’ s new building is nearing completion and an open house w ill be held on or about July 1. TALMAGE: Charles E. Wood, 98, who was associated with the Bank of Talmage for 75 years, died last week. He had retired as president in 1945 but continued as a direc tor. MINNESOTA NEWS BALATON: Fred A. Timm has re tired from the Farmers and Mer chants State Bank, and his sonin-law, V. G. (Bob) Schaffer, suc ceeds him as president and man aging officer. I0W A-DES MOINES NATIONAL BAN K Bob Buenneke ARLINGTON: Funeral services were held for Harry McClellan, Sr., 84, last week. He was a former president and chairman of the Arlington State Bank. SOUTH SIOUX CITY: W. P. Ber nard, executive vice president, Nebraska State Bank, has resigned. No replacement has been an nounced. you get w h at you w ant M e m b e r F e d e r a l D e p o s i t In s u r a n c e C o r p o r a t io n A N E B R A SK A NEWS DES MOINES: DeLuxe Check Print ers w ill start production in its new plant at 2700 Bell Avenue (Des Moines) in early June. Open house w ill be held several weeks later. The plant w ill serve the firm’ s customers in the Iowa area. W e're here to help T MIDDLE RIVER: L . A. Pogatchnik A A y A a > Y A V A Always the First to Serve You! First National Bank of Omaha 4L 16TH & FARNAM - OMAHA, NEBRASKA Member Federal Deposit Insurance Corporation https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A 4 L IN C O L N ...First in Transit Service FIRST NATIONAL BANK & TRUST COMPANY OF LINCOLN 12th & N S tre e t • L IN C O L N , N E B R A S K A • Member: F.D.I.C. r x & and associates of Kilkenny have purchased the Middle River State Bank. George Fricker, vice pres ident and cashier, w ill retire after 47 years in banking. Mr. Pogatchnik w ill be executive vice president. National Bank & T ru st C o m pan y REDWOOD F A LLS : The Comptrol ler has approved the conversion of the Citizens State Bank to the 1st Northwestern National Bank. * X ¥ A t V f * ROCHESTER: Robert S. Brenham, president, Northwestern National Bank, w ill resign July 1 to become senior vice president of the North western Beine orporati on. SOUTH D AKO TA NEWS HURON: The April 25 comparative statement issued by the Depart ment of Banking and Finance showed total deposits in statechartered South Dakota banks to be $503,737,984 compared to $488,877,970 a year ago. Loans were $270,516,115 compared to $232,379,130, representing 48.7% of assets. Time deposits continued to grow, amounting t o $229,936,809 compared to $202,864,970 a year ago. MOBRIDGE: , Open house w ill be held by the Citizens Bank in its new building on Friday June 2, starting at 3 P.M. RAPID C ITY : A complete on-thespot report of the 75th anniversary convention w ill be featured in the June Northwestern Banker. The convention concluded here on Saturday. NORTH DAKOTA NEWS f x * KILLD EER: J. O. Severtson has retired as vice president of the Bank of Killdeer and has bought a home in the Los Angeles area. NORTHWOOD: The new building for the Northwood State Bank is nearing completion and moving time is expected in July. Set Public Fund Rate The Alabama Legislature has passed a bill setting the rate on XL https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Kansas City, Missouri • member f .d .i .c . time deposits of state funds at 75% of the rate on Treasury bills. The measure, which passed after three attempts and which represents a compromise between the Alabama Bankers Association and the Wallace Administration, sets the rate at 75% of the bill rate average for the four weeks preceding the deposit contract date. Legislation on the rate on state funds is pending in the Iowa legislature, as well as in several other states in the mid west. totaled 865 last year which was 17 more than in 1965. However, these robberies accounted for a loss of $3.7 million as opposed to $3.9 million in the previous year. On the other hand, burglary losses increased greatly in 1966, almost double the previous year. CECIL MEANS W E'RE H E R E TO Bank Crimes Increase A downward trend in bank robberies during the first half of 1966 reversed itself during the second half of the year for a slight increase in such holdups for the full year. The increase again points up the need for all banks to constantly analyze losses and develop the most effective means to combat them. Bandit attacks against banks H E L P YOU • • •SfOi U T H " " " O maha • • •Sf i t o c k y a r d s n a t io n a l b a n k ____________ Member F.D.I.C. "SERVING BANKS AND BANKERS SINCE 1948' CECIL MEANS Bankers Service C O R P O R A T IO N B A N K ST O C K B R O K E R S B A N K P E R SO N N E L 1301 R & T B LD G WE’RE P H O N E 5 1 5 -2 4 4 -3 1 1 3 DES M O IN E S , IO W A 5 0 30 9 H E R E TO H E L P YOU vice center through which all charge slips would clear. Each of the banks w ill offer participation in the credit card plan to its area correspondents. It is expected that merchants signed up by any parti cipating bank would be asked to accept cards from customers of all member banks. Aid To Smaller Cities To spur economic development in smaller cities, Rep. Joe Evins (D.-Tenn.) has introduced a new tax-incentive bill. It would pro vide an additional 7% credit (on top of the one that pending legis lation would restore) for invest ment in machinery and equipment in plants in such cities. t Silver Dollar Plan A move to sell the Treasury’ s supply of silver dollars to the American Heart Association and the American Cancer Association has again been launched by Rep. Wright Patman (D .-Tex.). * < Examine Credit Cards Mosler Merger Mosler Safe Co., has announced that controlling interest in the company has been sold to AmericanStandard, a leading international producer of plumbing, heating, airconditioning and industrial equip ment. Stock represented by the Mosler family, certain key execu tives and certain trusts was sold for cash at a price of $38,50 per share. As part of the purchase agree ment, American-Standard w ill offer to purchase the shares of all other Mosler shareholders at the same price. It is planned that Mosler w ill operate as a separate unit of American-Standard and it is expec ted that John Mosler, chairman of the board, w ill become a director and an officer of American-Standard. St. Louis Charge Card The three largest banks in St. L o u is--Mercantile Trust, First National and Boatmen’ s National — have announced plans to develop a compatible credit card plan which all banks in the St. Louis area can offer to individuals and merchants. Although plans are not complete, the sponsoring banks are consider ing establishment of a joint ser- CENTRAL NATIONAL BANK WASHINGTON: Comptroller of the Currency William B. Camp is devling into the records of each nation al bank to get some idea of how credit cards are affecting its business. The Comptroller’s office has revealed that within a few weeks bank examination reports w ill have a new page requesting de tailed information on credit card operations. The move reflects Mr. Camp’ s growing awareness of the mush rooming bank credit card industry, and the effect it could have on the future stability of the national bank system. Freedom Share Redemption No legislation to allow finan cial institutions to redeem the new high-yield Freedom Shares that went on sale recently is expected to be sought by Treasury until late in this year’s session of Congress or early in next year’ s session. Until such legislation is en acted, only the Federal Reserve Banks and the Treasury itself have authority to redeem the Free dom Shares, which w ill yield 4.74% if held to their 4^-year maturity. AND TRUST WANT ADS Rates 25 cents per word per insertion. Minimum: 12 words. NORTHWESTERN BANKER 306 15th St., Des Moines, Iowa $10.00 IS The price of a personal, air mail subscription to the Crouse Farm Business Reports. They help keep loan officers and ag representa tives ahead of the changing farm picture. Samples available. Write Farm Business Council, Inc., P.O. Box F , Urbana, Illinois 61801. WANTED Credit and loan individual for over $2 million growing bank in good Colorado area near the mountains. Insurance and agricultural experi ence also helpful. Excellent op portunity for right, person. A ll replies treated in strictest confi dence. Write F ile CIX, in care of NORTHWESTERN BANKER, 306 15th St., Des Moines, Iowa 50309. BANKS WANTED Hard-working staff of energetic Chicago Loop bank desires to serve more banks in the midwest better than they have ever been served before. This is not a lip-service ad. We’ ll perform! Call Max Roy in Iowa City at 338-5224. Or phone us direct at L a Salle National Bank, 135 South L a Salle St., Chicago, Illinois 60690. STate 2-5200 (area code 312). Complete trust services. Member of Federal Deposit Insur ance Corporation, of course! COMPANY Member Federal Deposit Insurance Corporation /Rk Gross Co BANK PLANNING Waterloo, Iowa N o 1034 Northwestern Banker is published five times monthly by the Northwestern Banker Company, 306 Fifteenth Street, Des Moines, Iowa 50309. Subscriptions 50* per copy, $6 per year. Second c la s s postage paid at D es Moines, Iowa. Address all mail subscriptions, changes o f address (Forms 3579), manuscripts, mail items to above address. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis * * * A A % V % * Jf