Full text of The Northwestern Banker : May 30, 1966, No. 972
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Urge Periodic Reviews of Bank Losses * * y à * y k Because of a continued upward trend in bank losses and insurance costs, bank directors have been urged to make periodic reviews of their banks’ loss prevention pro grams. The suggestion was made by Maurice L. Breidenthal, Jr., chair man, Insurance and Protective Committee of The American Bank ers Association. He is also pres ident, Security National Bank, Kansas City, Kansas. Mr. Breidenthal pointed out that premium costs on blanket bonds purchased by banks are experience-rated and if bankers are to keep insurance costs with in reasonable limits, greater efforts must be made to avoid losses. “ All banks take normal pre cautions to control losses,’ ’ Mr. Breidenthal said. “ When a loss occurs, however, the cause should be determined and any weakness in the loss prevention program noted . .. Only through a constant analysis of losses and a determi nation to develop sound loss pre vention procedures can a bank expect to keep losses and insur ance costs at a minimum in the present difficult crime era.” Shortages reported in banks in the United States in 1965 totaled 1,545. Of these, 708 were short ages in tellers’ cash and other incidents in which there was no evidence of employee dishonesty. Deducting these, the total number *■ k https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis of employee defalcations was 837 of which 699 were under $10,000 and averaged about $2,800 each. There were 138 larger defal cations of $10,000 and over in 1965 with total losses of $13.3 million. Comparative figures for 1964 show 118 of these larger employee defalcations with aggre gate losses of $11.2 million. Both the total number of defalcations of $10,000 and over and the total amount of loss were the highest in 15 years. “ In reviewing annual statistics of employee defalcations,” Mr. Breidenthal said, “ sight must not be lost of the unusual expansion in banking in the past 15 years. Since 1950, the number of bank officers and employees has in creased from 439,000 to 791,000. Banking offices have increased from 19,700 to 30,250. Banks have expanded their services tremen dously to accommodate the growing needs of the public. “ Dishonesty in banking during this period of historic expansion continues to be confined to less than 1 /10th of one per cent of total personnel, now about 800,000. Data covering bank holdups during 1965 show 667 successful holdup attacks that netted robbers $3,899,000. During 1964, bandits took $3,924,000 during their course of 620 attacks. In 1965, banks were successful in frustrating 181 holdup attacks, a slight increase over the 173 rob bery preventions in 1964. But if most bank crime was up in 1965, so were arrests. About 55 per cent, or 622 of the 1,125 bandits active against banks were taken into custody as of the re*porting dates. In 1964,- of the 952 bandits active, 489 were arrested for a 51 per cent record. Bonding companies report that losses under bankers blanket bonds in 1964 were $20.2 million which is $2.1 million less than the $22.3 million reported in 1963. Insured losses fluctuate from year to year, however; and while the $20.2 mil lion figure is lower than in 1963, it is substantially higher than the annual average losses for the preceding five-year period. During that period, 1959 through 1963, annual losses under bankers blan ket bonds averaged $15.4 million. Bonding companies will not report 1965 losses until late this year. N ATIO N AL NEWS CHICAGO: Vernon Schwaegerle has tendered his resignation as execu tive vice president of the Bank Public Relations and Marketing Association, effective July 1. Mr. Schwaegerle cited personal com mitments as necessitating the move. LAWRENCE, MASS.: Stockholders of LeFebure, Inc., which has a plant at Cedar Rapids, Iowa, has approved the sale to Walter Kidde (Continued on back page) IN SIOUX C I T Y . THE BANK FOR PERSONAL SERVICE I= J SECURITY NATIONAL BANK Member Federal Deposit Insurance Corporation AMES: Richard Eggland, 50, a life long resident of the Roland area, has joined the staff of the Univer sity Bank and Trust Company as a farm loan officer. IOWA NEWS U.C.C. Pre-Filing Begins Next Monday Gary L. Cameron, secretary of state, has announced that a special Uniform Commercial Code pre-filing period will begin next Monday, June 6, for the benefit of parties to secured transactions and filing officers. The Code itself does not become law until July 4, and docu ments filed between June 6 and July 5, will be marked as having been filed at 8 a.m. July 5, 1966. Mr. Cameron noted that his office will accept early filings after June 6 as a means of acquainting persons involved with actual pro cessing. “ It has no legal signifi cance,” he noted, until July 5. Items filed on July 5 will be marked no earlier than 8:01 a.m. OVER 10,000 financial institutions across the cou n try bu y our equipm ent and services every year. CEDAR RAPIDS, IOWA 52406 AURELIA: First Trust and Savings Bank recently held open house in its newly-completed bank building. The event also marked the bank’ s completion of 85 years of service to the community. COUNCIL BLUFFS: Richard D. Reed, 24, has been promoted to assistant cashier and data pro cessing manager at Council Bluffs Savings Bank. DUBUQUE: American Trust and Savings Bank next Monday, June 6, will sponsor a meeting dealing with the Uniform Commercial Code and, in particular, Article 9 of the Code. The meeting, to be held at Loras College, will commence at 9 a.m. The session will feature four attorneys versed in the Code and will employ actual samples of forms to be used. The meeting, open to Northeast Iowa Banks, will include a luncheon, cocktail hour at Dubuque Country Club and a dinner. MARSHALLTOWN: The Commercial State Bank has withdrawn its ap plication for rezoning of local property for a drive-in bank facility. A similar request made by Security Savings Bank had previously been denied by the City Council. Secur ity Savings had earlier received permission from the State Banking Board to establish the drive-in facility at East Olive and South Second. Commercial State Bank’s We're here to help you get what you want IOWA-DES MOINES NATIONAL BANK George Harnagel https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M em ber F e d e r a l D e p o s it In su ra n ce C o rp o ra tio n rezoning application was for a similar facility at 3 West Olive street. MUSCATINE: Miss Jean Hargrafen of Letts has been named the re cipient of the annual $350 bank foundation scholarship awarded by the Columbus Junction State Bank. NEWTON: The newly-constructed drive-in bank facility at Jasper County Savings Bank was opened recently with a ribbon-cutting cereceremony. NORTH ENGLISH: Pauline Hum phrey has been elected assistant cashier of the Farmers Savings Bank here. N E B R A SK A NEWS DAVID CITY: The First National Bank is undergoing extensive re modeling. The project will result in a new front joining the bank with another building and removal of the second floor of the structure. EUSTIS: Officers, directors and staff members of the Farmers State Bank of Eustis recently held a dinner honoring Walter Hueftle, vice president and cashier, who is retiring after 44 years in the banking business. GERING: Harold Stuckey has re signed from the staff of the First National Bank, Kensington, Kansas, to become agricultural representa tive for the Gering National Bank. He is a former resident of Lexing ton. KIMBALL: Claude Alden, a direc tor of the American National Bank, Kimball, died recently in Mesa, Arizona, at the age of 81 years. LYONS: Leon Langemeier, pres ident, First National Bank of Lyons, has applied for a charter to estab lish a new bank at Snyder. Mr. Langemeier would be president of the new bank and would name three Snyder men as directors. OMAHA: Cecil E. Crawford, retired Air Force lieutenant colonel, has become associated with Chiles & Company. Mr. Crawford holds a Ph.D. degree in economics from the University of Glasgow, Scotland. WILCOX: John Petteys, vice pres ident, The First National Bank and a long-time Nebraska banker, has sold his interests in the bank to Winton Buckley, president, First National, and vice president, Na tional Bank of Commerce Trust, Lincoln. Dewaine been named cashier. Erickson has So many ways we can help you . . . MINNESOTA NEWS School of Banking To Begin June 19th T ► 4 Sixty Minnesota bankers will attend the first sessions of the newly-organized Minnesota twoyear school of banking June 19 at St. Olaf College, Northfield. In the words of Kenneth Wales, secretary of the sponsoring organ ization, the Minnesota Bankers Association, the new school will serve as a junior college for the Wisconsin School of Banking. The first cla ss, limited to 60 bankers, is aimed at serving bank officers and potential bank officers with a minimum of two years’ bank experience. Enrollment has also been limited to one student per bank. GLENCOE: The Security State Bank of Glencoe has installed 100 new safe deposit boxes, ac cording to A. W. Hoese, president. * y MINNEAPOLIS: Jon H. Bjornson, advertising director, Northwestern National Bank, has been elected treasurer of the Advertising Club of Minneapolis. MORRIS: The Citizens Bank re cently observed its 70th anniver sary of service to the community. i k y k k RICHFIELD: It has been announced that, due to unforeseen delays in construction of the banking quar ters, the Summit State Bank of Richfield-Bloomington will not open for business May 31 as had earlier been reported by the State Banking Department. A subsequent bulletin will be issued announcing the official opening date. ST. PAUL: F. William Stohr has been named Midwest vice president and sales manager for the Red Shield creditor insurance program for North Central Life Insurance Company. Donald L. Culver was named to a similar West Coast position. TOWER: John E.Micklech, Soudan, has been elected to the board of directors of the State Bank of https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Tower, succeeding the late Dr.L.E. Shafer. VIRGINIA: A charter for the North ern State Bank of Virginia was issued recently and the bank opened for business the same day. VIRGINIA: Robert Peterson, manag er of Citizens Loan in Marshall for the past four years, has joined State Bank of Virginia as manager of the installment loan department. SOUTH DAKOTA NEWS CORSICA: The Corsica Branch of The National Bank of South Dakota in Sioux Falls, will hold an open house in its newly-remodeled quar ters next Saturday, June 4. HURON: The Farmers and Merchants Motor Bank was opened for busi ness recently at the corner of Dako ta avenue and 18th street, south. It is the first banking facility to be located away from the Huron business district, due to a revision of the state banking laws last year which enabled banks to establish motor bank facilities separate from the main bank quarters. apolis, has been elected cashier of the bank, succeeding Mr. Her manson. NORTH DAKOTA NEWS GRAFTON: Ralph Adamsen, Graf ton, has been elected a director of The Grafton National Bank. In the June Issue of... The NORTHW ESTERN BA N K E R “ How Banks Are Observing June Dairy Month*’ is the subject of an exclusive survey featured in the Northwestern Banker for June, which will be in the mails this week. Other highlights include com plete coverages of the conventions held this month in North Dakota, South Dakota, Nebraska and Colo rado as well as the NABAC re gional convention held in Omaha and the annual Iowa group meeting tour. You’ ll also find programs for the Juné conventions of the Mon tana, Wyoming and Minnesota state banking associations. ...ALOHA! MONTANA NEWS GREAT FALLS: Donald C. Taylor, vice president, has been promoted to vice president and controller, and Harry A. Hermanson, cashier, has been elevated to assistant vice president at Great Falls National Bank. In addition, Robert L. Draeger, associated with the Northwest Bancorporation office in Minne- HEADY NOW The completely re-edited 1966 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. Write the N O R T H W ESTER N BA NKER today for your copy. The^ ad dress is 306 Fifteenth Street, Des Moines, Iowa 50309. Make Plans NOW to Join... The NORTHWESTERN BA N K E R post-A.B.A. convention 10-day HAWAIIAN TOUR C H R IS T Y AR M STR O N G LEO KANE LEO S C H L U E TE R ‘WE H A V E WHA T YOU WA NT in a", correspondent bank’ american trust and sa v in g s b a n k 9TH AND MAIN, DUBUQUE, IOWA MEMBER: FDIC • FRS See You in Minneapolis for the Minnesota Richard C. Newlin Vice President Bankers Convention BANKERS SERVICE CORPORATION Servin g Sank« and Bankers Since 1948 1301 R & T Bdg. • Tele. 515— 244*3113 D E S M O IN E S , IO W A 50309 N A T IO N A L NEWS (Continued) & Company, Inc., of substantially all its assets and property in ex change for a new Kidde Series A preference stock. Under terms of the sale, Kidde will exchange one share of $2.20 dividend preferred for each five shares of LeFebure. Kidde also will assume substanti ally all of LeFebure’s liabilities. NEW YORK: Diebold, Inc., Canton, Ohio, and Litton Industries, Beverly Hills, California, have announced that the firms’ merger negotiations have been terminated. A prelimin ary merger agreement, involving an exchange of $96 million in shares, had been announced in April. No reason was given for the termina tion of merger negotiations. NEW YORK: Official notice of the 92nd annual convention of the American Bankers Association, to be held in San Francisco October 23-26, has been mailed to all mem bers of the association. NEW YORK: First National City Bank has announced that it will issue in London its own negoti able CD’ s offered for U.S. dollars. Bankers Trust Company was re ported to be considering the same action. NEW YORK: Thomas F. Creamer has been elected a senior vice president of First National City Bank. NEW YORK: American Express Company has acquired all of the outstanding shares of W.H. Mor ton & Company, Inc., through a pooling of interest in exchange for 79,000 shares of American Express stock. At the same time, it was announced that William H. Morton had been elected vice chairman of the board of American Express and its overseas subsid iary, The American Express Com pany, Inc. ST. LOUIS: Bank Trust News, em ployee publication of the First National Bank in St. Louis and St. Louis Union Trust Company, has been awarded first place in newspaper photography by the School of Journalism, University of Missouri. SAN DIEGO: Approximately 1,500 bank men and women have gathered here for the 64th annual convention of the American Insti tute of Banking which begins to day at the El Cortez Hotel. Fed Opposes CD Restriction; Saxon Says B ills Unjustified James J. Saxon, Comptroller of the Currency, last week labeled as unjustified pending legislation which would prohibit insured com mercial banks from issuing any negotiable CD’ s, notes or deben tures and which would prohibit acceptance of time deposits in amounts of less than $15,000. “ The scope of these proposals astonishes me,’ ’ he said, “ in that I can think of no danger, malprac tice, or evil which can justify these restrictions.” The Federal Reserve has op posed any new laws restricting the ability of commercial banks to issue CD’ s. J.L. Robertson, vice chairman of the Reserve Board, said the system already has “ am ple power to cope with any situa tion that may arise.” Proud of our heritage of service to Iowa banks, we re building at 6th & Locust for an even greater tomorrow. NATIONAL BANK AND TRUST COM PANY M em ber Federal Deposit Insurance Corporation FRANK SIBERT: WE’RE H ER E TO H E L P YOU ••• "OUTH L aha D o c k y a r d s n a tio n a l b a n k Member F.D.I.C. L A T E NEWS... MINNEAPOLIS: Norman Nackerud, president, Northwestern National Bank, Lewiston, Montana, has been elected assistant vice presi dent of Northwest Bancorporation. DES MOINES: Funeral services were held Friday for Victor F. Becker, 70, president of Becker & Cownie, Inc., well-known local investment firm. Born at Calmar, Iowa, Mr. Becker was with the Carleton D. Beh Co. before form ing his own company in 1946. WANT ADS Rates 25 cents per w ord pez insertion. Minimum: 12 words. NORTHWESTERN BANKER 306 15th St., Des M oines, Iow a WANTED A promotion and/or goodwill minded agricultural banker to use our resources in his farm or ranch relations program. Box FBC, c /o Northwestern Banker, 306 Fifteen th Street, Des Moines, Iowa 50309. POSITION WANTED Specialist in overlines and cattle loans desires work. Offers years of banking experience. Intense desire to please. Backed up by staff of specialists in all phases of banking. For immediate action call Max Roy in Iowa City (3385908) or Cy Kirk in Des Moines (277-2602). Or call La Salle National Bank, 135 S. La Salle Street, Chicago, Illinois 60690. STate 2-5200 (Area Code 312). No. 972 Northwestern Banker is published five times monthly by the Northwestern Banker Company, 300 Fifteenth Street, Des Moines, Iowa 50309- Subscription 50* per copy, $4 per year. Second cla ss postage paid at Des Moines, Iowa. Address all m 1 subscriptions, changes of address, Form 3579, manuscripts, mail items to above address. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis