Full text of The Northwestern Banker : May 30, 1966, No. 972

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Urge Periodic Reviews of Bank Losses

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

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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

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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

►

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.

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.

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

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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.

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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.

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Full text of The Northwestern Banker : May 30, 1966, No. 972

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