Full text of The Northwestern Banker : May 22, 1967, No. 1034

View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

No. 1034

Dos Moines, Iowa

S & L S u p ervisor Opposes Mobile Unit App
*

*
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

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

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

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

MIDDLE RIVER: L . A. Pogatchnik

Always the First to Serve You!

First National Bank of Omaha

16TH & FARNAM - OMAHA, NEBRASKA
Member Federal Deposit Insurance Corporation

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

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.

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.

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

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

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.

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

Full text of The Northwestern Banker : May 22, 1967, No. 1034

FRASER