The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
THIRTY-FIRST YEAR
NOVEM BER, 1926
R eport of Investm ent Bankers
Association Convention
C harting Business Conditions
at B ohuncus, M innebraska
TH E PHOTO BELO W
P lin y Jew ell, n ew ly elected p resi
d e n t o f th e In v e stm e n t B ankers A s
sociation. M r. Jew ell is vice p resid en t
o f Coffin & B urr, Inc., Boston.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
NUMBER 471
THE
2
NORTHWESTERN
in 1857—68
years ago; and during
this period through
conservative, s u b s ta n tia l
banking THE F IRST
NATIONAL has rendered
an unexcelled service to
correspondent banks in the
west.
ounded
F
Sixty-eight years afford ample test and
supply conclusive proof of the stability
of any institution—particularly that of
a bank.
REFINANCE YOUR LOANS NOW
WHILE RATES ARE CHEAP
WE ALSO MAKE CITY LOANS IN DES MOINES
DAVENPORT, CEDAR RAPIDS, IOWA CITY
CLINTON, BURLINGTON
CEDAR RAPIDS, IOWA
N a t io n a l
D ES M OINES OFFICE
555 Seventh Street, D es M oines, Iowa
CENTRAL IOWA OFFICE
Carroll, Iowa
F. C. W A P L E S , President
IN G R A M B IX L E R Vice President
C L IF F O R D DE P U Y , Vice President
R. S. S IN C L A IR . Vice President
R. J. S O E N E R , Secretary Treasurer
R U S S E L L D. C O LE , Assistant Secretary
R, H. M E M E I ER , Assistant Secretary
P T. W A P L E S . Manager Western Office
J Bankof O m a h a
T
F arm L oans
M id l a n d M o r t g a g e C o m p a n y
C.
T. KOUNTZE
V ice P res, and Chairman
F. H. D A V IS
President
November, 1926
BANKER
H E Des Moines business of Iowa
banks is invited. T hese banks
are th o ro u g h ly
equipped in every
departm ent.
Valley National Bank
SIOUX CITY
serves one of America’s richest farming
territories, and its commercial import
ance in the West makes a good banking
connection in this city highly valuable.
We invite correspondence regarding
our service to banks and bankers.
AND
Valley Savings Bank
DES M O IN E S, IOWA
V a lley B ank B uilding
E stablish ed 1872
Combined Capital and Surplus
$ 1, 100, 000.00
R. A. CRAW FORD, P resid en t
D. S. CHAM BER LAIN , V ice
P resident
C. T. COLE,» JR ., V ice P resident
W. E. BA RRETT, Cashier
JO H N H . G IN SBER G , A sst.
Cashier
C. M. CORNWELL, A sst.
Cashier
The Northwestern Banker is the oldest
banking publication west of the Missis
sippi river—and was the first in
America to join the Audit Bureau of
Circulations. It is the official publica
tion of the South Dakota Bankers Asso
ciation, the Iowa Farm Mortgage Bank
ers Association, and the Iowa Bond
Dealers Association. It must be used
to cover America’s richest agricultural
territory.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
CAPITAL ONE MILLION DOLLARS
SERVICE
CO O PERA TIO N
R EA D ER CONFIDENCE
THE NORTHWESTERN BANKER
DES MOINES
G
G
G
IOWA
“ AROUND THE NORTHWEST WITH THE NORTHWESTERN”
A
W H E E Z IN G , groaning, m otor-driven ferry is
-L
about to make its last trip across the M innesota
river at M endota, M innesota.
N ow towering above the aged ferry’s course, and stretching be
tween this pioneer town and historic Fort Snelling, is the largest
concrete arch bridge in the world.
This greatest of concrete arch
bridges is 4,119 feet long. It
has 13 arch spans. The bridge
floor is 120 feet above the
river’s low water level. Con
struction required 76,000
cubic yards of concrete and
2,500 tons of reinforcing steel.
Total cost: about $2,000,000.
Modernized only by an auto
motor, “the river taxi” [insert
above bridge] is finishing the
last lap of Mendota’s 100-yearold ferry service.
For several miles north and south along the river from M endota
there has been no bridge. In all the years of the N orthwestern
N a tio n a l Banfy, in fact, there has been no way of crossing the
Minnesota here save by boat or by use of the now 100-year-old
ferry service.
Small wonder then that the opening of the colossal M endota-Fort
Snelling bridge this month is the occasion for a tri-state celebration.
M ere physical barriers, as an unbridged river, do not stop the rapid
extension of the bank’s service to all the northwest. Yet we rejoice
in seeing such barriers eliminated and our great, territory more
closely united. A n d so w ith this remarkable new bridge: more
often, more directly we will meet w ith w arm hand-clasp our good
friends to the south—in Minnesota, Iowa and Wisconsin.
L1 — Vrf
(Affiliated with the
\
M INNESOTA LOAN AND TRUST CO.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Combined
Resources
¿ 1 0 5 ,0 0 0 .0 0 0 .^
THE
4
M
NORTHWESTERN
November, 1926
BANKER
N O R TH W ESTER N BANKER
DES M O I N E S
The Oldest Financial Journal W e s t o f the M ississippi
T h ir ty - f ir st Y ear
N u m ber 471
C O N T E N T S FO R N O V EM BER, 1926
P age
P age
Across from the P ublisher..............By Clifford D ePuy
6
Frontispiece........................................................ P- H. H all
8
‘ ‘In This Is s u e ” ................................................................
The New A. B. A. P resid en t.... .........................................
The A. B. A. Convention................................-...................
9
10
H
E n route to the A. B. A ....................................................
18
Personal P arag rap h s................................ -............
Special Investm ent B ankers Section.................-
80
41
Insurance Section....................................................
A. B. A. Snapshots............................................................... 15
“ My F irs t Banking J o b ” ...............................................- 16
S tartin g a B ank.................................By S. H. B urnham 17
“ News and V iew s” .......................................................... 18
Conditions in Boliuneus....... .............. By Boscoe Macy 19
The W arehouse R eceipt................ — By J. G. Mitchell 20
N ebraska News............... .........................................
71
00
Minnesota News................... -......... ........................
N orth D akota News................... -...........................
75
79
Bankers and Their W an ts..................................... 68
South D ak o ta N ew s...................... -.......-....... —- 69
Iowa News............. ....................................................
‘ ‘ In the D irectors ’ Room ’ ’ ...................................
87
98
T h e c o n te n ts of th is m ag azin e a re fu lly p ro te c te d h y c o p y rig h t
DE PUY PUBLICATIONS AND THEIR TERRITORY
T r a n s -M is s is s ip p i B a n k e r
N o rth w estern B ank er
K A N S A S CITY
DES M O IN ES
I n s u r a n c e M a g a zine
M id -C o n t in e n t B a n k e r
K A N S A S CITY
S A IN T LOU IS
III
S o u t h w e s t e r n B a n k e r s J o u rn a l
U n d e r w r it e r s R e v ie w
FORT W O RTH
DES M O IN ES
L if e I n s u r a n c e S e l l in g
I ow a B a n k D irectory
ST. LOUIS
DES M O IN ES
T H E N O R TH W ESTER N B A N K ER , P ublished by D eP uy P ublishing Co., I nc., Capital S tock, $100,000.00
555 Seventh Street, Des Moines.
C lifford D e P uy , P u b lis h e r; G. A . S nider , A ssociate P u b lis h e r; R. W . M oorhead , E d ito r.
R ex V . L e n t z , A d v e rtisin g D irecto r.
H . H . H a y n e s , A ssociate M anager.
M t n n f a p o l i s O f f ic e - F r a n k S. Lew is, 840 L u m b er E x c h a n g e B ldg., P hone M ain 3865.
C hicago O f f ic e : W m. H . M aas, 1221 F ir s t
N a tio n a l B an k Bldg., P h o n e C en tra l 3591. S t . L ouis O f f ic e : D onald H . C lark, 408 Olive S t., P h o n e M am 1342. K a n s a s C ity O f f ic e :
Glen D. M athew s, 405 R idge B ldg., P h o n e H a rris o n 5857.
F ort W orth , T e xas , O f f ic e : H . L aw son H eth erw ick , 409 F . & M. B an k Bldg.
S a n F rancisco O f f ic e : G eorge W ig h t, 600 B ald w in B ldg.
Entered as second class m atter at the Des Moines postofflce
Subscription Rat.«, * 3 . 0 0
Official P u b lic a tio n of
T H E SO U T H D A K O TA B A N K E R S A SS O C IA T IO N
T H E IO W A FA R M M O R T G A G E A S S O C IA T IO N
T H E IO W A BO ND D E A L E R S A SS O C IA T IO N
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
per year; 5 0 cents per copy
November, 1926
THE
i
NORTHWESTERN
BANKER
For over th irty yea rs we have been
supplying banks with safe investments.
l
J
SPECIALIZED EXPERIENCE
more so than other business men, knows
that a long and varied experience is his best asset.
H E BANKER,
T
By extensive dealings with many customers over a period
of years, he builds up a wide knowledge of the special
requirements of business men in varied fields. H e brings
to the solution of individual problems the judgment and
foresight which only experience provides. As a specialist
in his own field, he appreciates the value and importance
of specialization in others.
For over thirty years, A. G. Becker & Co. have special
ized in supplying banks in all parts of the country with
safe investments. We are familiar with the banker’s needs
and have made a study o f his problems. With a national
organization and special facilities for providing banks
with conservative investments, we welcome the opportun
ity to be of service to you0
A. G. Becker & Co.
13 7 South La Salle Street, Chicago
NEW YORK
Bonds
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
ST. LOUIS
SEATTLE
MILWAUKEE
M INNEAPOLIS
SA N FRANCISCO
PORTLAND
SPOKANE
Short Term Notes
Commercial Paper
THE
6
NORTHWESTERN
BANKER
November, 1926
A cross the Desk from the Publisher
rH IL E I was in Los An* * geles attending t h e
American Bankers Convention,
I was invited—as were the
other bankers present—to have
breakfast at the Breakfast
Club.
I was very much interested
in seeing what kind of an or
ganization this would prove to
be. At first I thought that
there were so many noonday
luncheon clubs and not enough
noons to go around, that they
were probably starting in hav
ing meetings at breakfast time. This latter partially
proved to be true, but the Breakfast Club has a far
bigger and higher purpose than simply the meeting
once every Friday morning for breakfast. It is
known to its members as the “ Shrine of Friend
ship.”
In Rotary clubs and other similar organizations
you do not meet your competitors; in the Breakfast
Club you meet your competitors, who may have
been your enemies, and who because of the prin
ciples of the Breakfast Club soon become your
friends.
The Breakfast Club is located about twelve miles
from Los Angeles and breakfast is served under
open skies on wooden tables with wooden benches
for seats. One of the mottoes which I noticed from
where I sat, said, “ If you have an enemy, bring
him to the Breakfast Club and we will make him
your friend.” Another placard said, “ The Break
fast Club is probably the only organization in the
world where there are no dues and no assessments. ’’
Each member as he comes into the club entertains
all of the other members at breakfast and this covers
liis entire payment while he is a member.
The morning we were there they initiated George
Yon Elm, the new national golf champion and a citi
zen of Los Angeles.
The symbols of the organization are the Oil Can,
which is to “ Soothe us as we toil and keep us free
from strife,” the Shovel, which indicates that each
member should dig deep into the human clay and
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
bring out the best in every m an;
the next symbol is the Golden
Rule, which means that each
member should treat every
other member fairly, honestly,
and as he himself would like to
be treated.
The Breakfast Club is com
posed of the most prominent
and influential men of Los An
geles and has done much to pro
mote the commercial, educa
tional, and philanthropic needs
of the Sunshine City of south
ern California. As I listened to
G. Allison Phelps, who is known as the Breakfast
Club philosopher, read his very beautiful tribute to
the Shrine of Friendship, I thought how much bet
ter we all would be if we gave more thought and
more time in this busy world of ours to making
friends and keeping them.
As Mr. Phelps so well expressed it, “ In this
world of hatred, of jealousy, of deceit and envy, the
Shrine of Friendship is like a scintillating star that
shines through a black sky of pain. It is a light
around which men may gather, gaining as they do
so a better understanding of themselves and a
clearer conception of the problems faced by their
associates.”
The C o st of
Checking A cco u n ts
' I ’HE increasing cost of doing business in banks
was discussed by Peter W. Goebel, president of
the Liberty National Bank of Kansas City, before
the State Bank Section at Los Angeles.
Mr. Goebel pointed out that checking accounts
represent the bulk of the increase in cost and recom
mended a monthly service charge to offset this ex
pense. He believed that one dollar or more should
be the monthly charge and was opposed to charging
only fifty cents, as he did not believe it was enough.
This same idea has been advocated by many state
associations, and in many cities a service fee is
already in operation. As T h e N o r t h w e st e r n
November, 1926
THE
NORTHWESTERN
B a n k e r has pointed out before, there is no reason
why any bank should operate any department at a
loss, and certainly if the banks of the country are to
do the bookkeeping of the community, they should
be paid for so doing. Mr. Goebel also pointed out
that between 1919 and 1925 the gross income of
member banks had increased 42 per cent while the
net income had increased only 13 per cent. In addi
tion to making a charge for the handling of checks
Mr. Goebel also recommended that banks should
make a charge for collections. Other items which
he favored in order to reduce the bank’s expenses
was a cessation of what he termed an undue scramble
for the deposit of public funds with a resulting de
crease in rates; a readjustment of losses flowing
from postwar conditions; an analysis of business
handled; and a reduction in the cost of stationery.
Some bankers do not agree with all of these points.
Some believe there should be no charge for check
ing accounts which carry an unsatisfactory average
balance, the thought being that such accounts may
develop into satisfactory accounts later on or may
be the means of bringing other accounts to the bank.
Other banks believe that every department of the
bank should be made to stand on its own founda
tion and to pay its own proportionate share of the
cost of operating the bank. This much is certain,
that bankers everywhere are analyzing the cost of
doing business more carefully than ever before and
are running their institutions more economically
and more carefully.
BANKER
Economists tell us if we take the world as a whole
there is no overproduction. We cannot say that if
people are starving in India and we have an abund
ance of wheat or corn or apples, which if the people
in India could secure would keep them alive, that
there is any real world-wide overproduction. Our
problem is one of marketing and transportation and
not of overproduction. However, because we have
not yet been able to adjust our marketing and trans
portation machinery so that we can place our sur
plus products exactly where there is the greatest
demand at exactly the right time, we still have the
local problem of overproduction.
The cotton growers in the South are organizing a
pool so that they can take 4,000,000 bales of cotton
off of the present market in order to stabilize present
prices because this year there has been more cotton
raised than any year for some time.
So we come to the conclusion that while there is
not overproduction as we look at it from the world’s
standpoint, we still have overproduction to face
from a local standpoint and will have until our
marketing and distribution facilities have become
more efficient.
M aking H ero es
O ut of C rim inals
T N THE symposium which is being conducted by
T h e N o r t h w e s t e r n B a n k e r on the Guaranty
Deposit law, a Nebraska state banker brought out
the interesting point that “ the Nebraska guaranty
Is There
law has lessened the stamina and decreased the
moral fiber of many of our depositors to such a de
O verprodu ction ?
"D ETURNING from Los Angeles many bankers gree that it is almost impossible to convict in our
stopped at cities along the Pacific Coast and courts a man who has violated and transgressed our
were entertained by bankers and business men in banking laws. In fact, in some cases the banking
these various communities. In each city the usual criminal becomes a hero.”
About a year ago the superintendent of banking
question was asked about manufacturing conditions,
the agricultural situation, or the mining situation, in the state of Texas told us of a banker who had
depending upon which kind of business was most practically robbed his bank of its deposits and then
when he was placed on trial for fraudulent banking
representative in that community.
In almost every city we found that overproduc the jury acquitted him because at one time or an
tion seemed to be the great cause of low prices and other he had loaned money to practically every one
small profits. In the lumber country too much lum of them. Soon after his acquittal he was elected
ber had been put through the mills. In the apple mayor of the town.
section too big a crop had been harvested. In the
If the guaranty-of-bank-deposits law among all
copper mining regions, too much copper was being of its other weaknesses is going to make heroes out
mined, all of which was resulting in a very low price of criminals, then, in the name of good banking,
for the finished product or article.
good business, and good economics, le t’s see that no
This brings us to the old question of whether or such a law is put upon the statute books of any
not there really is such a thing as overproduction. states where it does not now exist.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
7
P. L. HALL
Chairman, Executive Council Nebraska Bankers Association.
P. L. H all, chairm an of the executive committee of the N ebraska Bankers Asso
ciation, is cashier of the Greenwood State Bank, Greenwood. H is first banking
experience was with the Central N ational Bank of Lincoln, leaving th a t institution
to become ad ju tan t general of Nebraska.
Air-. H all served in the world Avar, at the close of which he became cashier of the
Greemvood State. He has since been president of the Cass County Bankers Asso
ciation, member of the state association executive council, and is now chairm an
of the body.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
THE COVER PHOTO
P liny Jew ell, newly elected president
of the Investm ent B ankers A ssociation,
whose photograph appears on this
m onth’s cover page, is vice presid en t of
Coffin & B urr, Inc., Boston.
Mr. Jew ell g rad u ated from H a rv a rd in
1899, and was fo r several years in the
new spaper business; in 1906 he became
associated w ith P erry , Coffin & B urr, and
since 1916 w ith Coffin & B urr, w hich be
come incorporated in th a t year. Mr.
Jew ell was chairm an of the New E ngland
Group, m em ber of a num ber of standing
com m ittees; in 1925-1926 was vice p resi
dent and chairm an of the business con
duct com m ittee of the A ssociation. H e
is also a m ember of the board of m an
agers of The C hildren’s H ospital, B o sto n ;
T rustee and M ember of the E xecutive
Com m ittee of Boston U niversity, and is
D irector of the B oston B e tte r Business
Bureau.
IN
t h is
ISSUE
the in tim ate frien d sh ip s and happenings
of th e m eeting.
The N orthwestern B anker was hap p y to have its publisher
as a delegate there, and he has rep o rted
the convention quite thoroughly in this
issue. The convention m aterial s ta rts on
page 10 of th is issue, w ith <a large p o r
tr a it of the new and re tirin g presidents,
and ends on page 15, w ith a num ber of
excellent snapshots of the Los Angeles
m eeting. These will be of p a rtic u la r in
terest to delegates who atten d ed from the
middle west.
A NEW STATISTICIAN
A SPECIAL SECTION
This issue would not be com plete w ith
out a thorough resum é of the proceedings
of the In vestm ent B ankers A ssociation,
w hich held its annual convention la st
m onth in Quebec. The rea d er w ill find
this vast fu n d of in form ation and comm ent in our reg u lar bond and investm ent
section, s ta rtin g on P age 41. Of more
th a n passing in te rest is the article on
page 47 of this section, headed, “A d
vantages of Com mercial P a p e r.”
It
deals fra n k ly w ith one of the b an k e r’s
g rea test problem s and should be read
w ith deep interest by every N orthw est ern B anker subscriber.
THE A. B. A. CONVENTION
This y e a r’s A. B. A. convention a t
Los Angeles, was one of the m ost suc
cessful in the history of the A m erican
B ankers A ssociation.
D elegates were
en tertain ed royally both en route, and
while in C alifornia.
Y et the m ost im p o rta n t p a r t of the
convention, as it usually happens, were
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
M any le tte rs from our read ers state
th a t they are deriving keen enjoym ent
from the m onthly article which appears
in the N orthwestern B anker u n d er the
sig n atu re of our fellow banker, Roscoe
Macy. H is keen sense of hum or, to
geth er w ith his in tim ate knowledge of
country banking, are responsible fo r the
Thank You, Mr. Mengers!
W e are glad to know we have
made an o th er of our subscribers
happy, as evidenced by the follow
ing le tte r ju st received: “W e w ant
to th a n k you fo r calling our a tte n
tio n to the free service of your
classified ad d ep artm en t to sub
scribers, and assure you we ap p re
ciate this and the m any services of
this and o th er kinds you are giving
your subscribers th a t go to m ake
the N orthwestern B anker the
m agazine it is.”
(Signed) J oe M enges ,
Cashier, F irs t S tate B ank,
A rlington, Iowa.
p resen tatio n of an excellent series of
articles.
H is article in th is issue is quite up to
p ar, dealing as it does w ith a very im
p o rta n t question, “Business Conditions
in Bohuncus, M innebraska.” M ost of us
are too fam iliar w ith the deluge of sta
tistical in fo rm atio n we receive on gen
eral business conditions, and Mr. M acy’s
clever satire on page 19 of this issue will
be a welcome relief. Be sure to read it!
Page 19 !
“PIONEER BANKING DAYS”
On pages 16 and 17 of th is issue,
readers will find the beginning of a veinin terestin g series of fe a tu re articles
which will ap p ear in early issues of the
N orthwestern B anker , under the gen
eral caption “P ioneer D ays in B anking.”
A num ber of the veteran bankers of Iowa,
N ebraska, M innesota and the two D a
kotas have already w ritten several a r
ticles dealing w ith reminescences of early
days when m ost of us were in k in d er
g arten, and the first two of the series
sta rts w ith this issue. M essers. O. P.
M iller of Rock Rapids, Iowa, and S. H.
B urnham of Lincoln, N ebraska, are re
sponsible fo r the first two of the articles.
This m agazine prom ises th a t every a r
ticle will be of keenest in te rest to its
m any readers.
Also, rem em ber th a t the N orthwest
ern B anker is desirous of obtaining
o th er rem inescenses from o th er bankers,
on pioneer days and will welcome any
such contributions together w ith any
photographs to illu strate . Send in your
stories and photographs !
WAREHOUSE RECEIPTS
Of p a rtic u la r in te rest to Iow a sub
scribers, in this issue, is the splendid
article by J . G. M itchell, well-known
farm leader, on page 20. This is an ex
cellent analysis of the purposes and
m ethods of the w arehouse receip t legis
lation. W ith the article, also, is a fine
snapshot of Mr. M itchell, to g eth er w ith
the late S enator A lb ert B. Cummins, of
Iowa, one of the la st photos of th is illus
trio u s son of Iowa.
10
THE
NORTHWESTERN
BANKER
November, 1926
The New A. B. A. President
Y ards N ational B ank of E a st St. Louis.
A fte r three years of service th ere he came
to Chicago in Septem ber, 1914, as vice
p resid en t of the Live Stock Exchange
N atio n al B ank, and p resid en t of th e Chi
cago C attle Loan Company. In Ja n u a ry ,
1916, he was elected p resid en t of the
Live Stock Exchange N ational Bank, now
the Stock Y ards N ational.
President of Both Banks
Mr. T raylor was elected presid en t of
the F irs t T ru st and Savings B ank and
vice p resid en t of the F irs t N ational Bank
of Chicago in October, of 1918, and was
made a d irecto r of both in stitu tio n s. He
assum ed his new duties on Ja n u a ry 1st
of the follow ing year and has since been
an active fa c to r in the developm ent of
the two banks, being elected presid en t
of the F ir s t N ational in Ja n u a ry , 1925.
P receding the Second L iberty Loan,
Mr. T raylor was appointed d irecto r of
sales fo r T reasu ry Certificates of I n
debtedness fo r the Seventh F ed eral R e
serve D istrict. H e bu ilt up a rem arkably
successful
sales
organization,
and
throughout the w ar and the period im
m ediately succeeding was em inently suc
cessful in the broad d istrib u tio n of Cer
tificates throughout the d istrict. H e has
tak en an active in te rest in banking
organizations, and was presid en t of the
Illinois B ankers A ssociation, 1923-24.
F o r several years he served as chairm an
of the Economic Policy Commission of the
A m erican B ankers A ssociation, and in
1924 was elected second vice p resid en t of
the association, becoming first vice p resi
den t in 1925.
Is Noted Speaker
“ Out w ith the old and in w ith the n ew .” M elvin A. T raylor, of Chicago, new
president of the A m erican B ankers A ssociation, on the le ft in th e above photo, is
shaking hands w ith th e re tirin g “ p re x y ,” Oscar W ells, of B irm ingham , Ala. This
photo was tak en a t the Los Angeles convention la st m onth. Photo, Underwood and
Underwood.
E L V IN A. TRAYLOR, president
of both the F irs t N ational and
the F irs t T ru st and Savings
Banks of Chicago, was given the highest
honor which a group of bankers m ay con
fe r on one of th e ir n bdst when he was
elected president of the A m erican B ank
ers A ssociation last m onth in Los Angeles
a t the annual association convention.
M
city clerk of H illsboro, and subsequently
assista n t county atto rn ey of H ill County,
Texas, which office he held u n til 1905.
Mr. T raylor was born in Breeding, K en
tucky, O ctober 21, 1878. A t tw enty
years of age he w ent to H illsboro, Texas,
where he w orked in a grocery store and
studied law a t night. Soon a fte r being
adm itted to the b ar in 1901 he was elected
H is banking career began in th a t y ear
as cashier of the Bank of Malone, Texas.
Two years la ter, he was made cashier of
the Citizens N ational Bank of Ballinger,
Texas, and a y ear la ter vice presid en t of
th a t institu tio n . In A ugust, 1909, the
Ciitzens N ational B ank took over the
F irs t N ational B ank, and Mr. T ray lo r be
came presid en t of the consolidated in sti
tution, then capitalized a t $200,000,000.
In 1911 he w ent to St. Louis to become
vice presid en t of the N ational Stock
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
D uring recen t years Mr. T ray lo r has
been noted fo r scholarly addresses, deal
ing w ith economic subjects and business
conditions, m any of which have been pub
lished and widely quoted. In recognition
of his attain m en ts, Illinois College a t
Jacksonville, con ferred upon him the
honorary degree of M aster of A rts in
1922.
M r. T raylor is p resid en t of the Shedd
A quarium Society, endowed w ith $3,000,000 to erect and equip the m ost com plete
aquarium , from a scientific stan d p o in t, in
the world. H e is an enth u siastic and
skillful golfer, a m em ber of m any clubs,
am ong them the Glen View and Old Elm
C ountry Clubs, th e Chicago Club and the
U niversity Club of Chicago; is a tru ste e
of N orthw estern U niversity, E vanston,
Illin o is; of B erea College, Berea, K en
tu ck y ; and o f the N ew berry L ibrary,
Chicago.
November, 1926
THE
NORTHWESTERN
BANKER
11
W h at They Said at the A. B. A.
Convention
Peter W. Goebel, California:
“I do not believe I m ake an o ver-state
m ent when I say th a t a t least 35 p er cent
o f the checking accounts resu lt in a loss
to the bank. A checking account was
form erly an indication of m erit. I t is
no longer on account of the g rea t num
ber of checks th a t have to be returned.
You rem em ber when N ate Nixnoox asked
Abe K a b ib b le : “H ave you received my
check?” and Abe rep lied : “Yes, twice,
once from you and once from the bank.”
W hile we are all try in g to reduce this
nuisance (it w ill never be quite elim i
n ated) there has been no m aterial reduc
tion thus fa r. H ave you ever studied the
am ount of tim e your tellers and ju n io r
officers have to p u t in try in g to get iden
tification on these little checks given to
Tom, Dick and H arry , and presented to
the window fo r pay m en t? I f you have
not, you w ill find th a t you could reduce
your wage expenses a considerable
am ount if these were elim inated. Of
course, an adequate service charge will
rem edy this to a considerable extent and
I am glad th a t m ost bankers are p u ttin g
in such a charge. H ow ever, in most
cases it is inadequate and I hope the gen
eral views of banks on this subject will
soon change, so sufficient charges to
cover a t least a p a r t of the ex tra expense
o f ta k in g care of these accounts m ay be
m ade.”
Thomas F. Wallace, St. Paul:
“ N ever was th ere g re a te r need of en
lightened and courageous leadership
am ong savings bankers. The conviction
th a t the phrase, “W e are living too f a s t,”
which is now heard on every hand, is no
idle jest, is daily forcing itself upon us.
“O ur p ro sp erity is f a r from even, the
volume of trad e is enormous, but in this
volume businesses which adm inister to
luxuries ra n k high, while the necessities
tak e second place. A tim e of rea l ad
ju stm en t is inevitable and w ith i t all
come political and social changes of g rea t
im port. I f a t such tim es the savings of
our g rea t m iddle class are preserved and
m ade secure, the shock of read ju stm en t
will be g reatly m inim ized and the evils it
produces largely overcome.”
Craig B. Hazelwood, Chicago:
“ S u p e rv isio n t h a t p re v e n ts b a n k d is a s
te r is m ore v a lu a b le to th e sto c k h o ld e rs
a n d d e p o sito rs a lik e th a n p a y m e n t o f th e
d e p o sits th ro u g h liq u id a tio n , o r b y o p e ra
tio n o f a g u a ra n ty fu n d , o r b y a n y o th e r
fo rm o f in s u ra n c e a f t e r fa ilu re h as ta k e n
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
place. I f th ere is a method by which the
good banks of your county can help to
reduce th e risks in banking, is it not
w orth while fo r all of them to jo in to
g eth er fo r this pu rp o se? A lm ost all
bankers feel th a t th e ir banks are being
conducted properly.
H ow ever, m any
bankers perhaps know of cases of banks
which are ta k in g unw ise risks. They u n
doubtedly feel th a t some of these in sti
tutio n s may a t some tim e get into trouble
if they p ersist in ta k in g these risks.
They know also th a t the judgm ent of
other bankers in th e ir com m unity would
coincide w ith th eirs about the danger of
such risks. In m any cases these risks
probably are tak en by bankers who are
som ew hat inexperienced, wTho desire to
fa v o r some p a rtic u la r in terest, or who
m ay them selves have in te rests in o u t
side businesses which they w ish to p ro
mote. There is a plan which is a demon
stra te d success in th irty -th ree cities of
this co untry and which has gone a very
long w ay to reduce these risk s in these
com munities. I re fe r to the plan of a
clearing house exam ination.”
forces banks into a so rt o f bank canni
balism, which eats up profits, and la te r
banks, a t a rap id rate. B ankers are hu
m an and yield to the tem p tatio n of sacri
ficing profits fo r the sake of new business
and to hold w hat they have from th e ir
hungry com petitors.
“As a resu lt of this condition, which
has been brought about by the various
state governm ents ch arterin g banks to
any group of citizens, who may apply fo r
a ch arter, it has become necessary to col
lect a fee fo r every service th a t the bank
renders, in order th a t the bank m ay be
able to exist and pay expenses, and yet,
th is very condition created by com peti
tion m akes the collection of fees m ost
difficult because of the fe a r th a t a banker
n atu ra lly has th a t such action w ill cost
him business.”
Miss Torba McDaniel, Indiana:
“W ith a reduction of fu lly 60 p er cent
in the num ber of bank crim es of violence
and reduction of 80 per cent in th e
am ount of bank losses during the last
y ea r in the six states of Iowa, Oklahoma,
K ansas, M innesota, Illinois and In d ian a,
Dr. Walter F. Dexter, California:
which now m ain tain the V igilante or
“ The b anker attach es u tilita ria n values County U nit P ro tectiv e P lan , its effec
to the m oral and social code of religion tiveness is conclusively proved. This p er
and education. Too o ften the th eo retical centage of reduction, we feel, justifies our
th in k e r has em phasized m o rality fo r m or pride and enthusiasm in the organization.
a lity ’s sake alone. I t has been made an
“ The plan o riginated in the Iow a B ank
end in itself, much the same as sacrifice
ers A ssociation, from which much of our
has been made an end in itself. The
d a ta was obtained. Briefly, details of the
close observer of hum an progress adm its
plan a r e : first, organize a county bankers
th a t sacrifice fo r the sake of sacrifice
association, and w ithin it a county p ro
alone is worse th an absurd, b u t few there
tective organization is fo rm ed ; a rew ard
are who do not give sacrifice a large place
of $1,000 or more is offered fo r the cap
in hum an affairs when it is directed to
tu re and conviction of bank bandits, dead
w ard a concrete and definite resu lt in h u
or alive, and large rew ard cards are
m an society, and consequently is m ade a
widely d istrib u ted throughout the coun
m eans of alm ost unlim ited service. Be
tr y ; each bank then selects its guards or
cause of an economic advantage the
vigilantes and has them appointed special
b an k er has helped society to d irect v ir
deputy sheriffs. They are th en bonded
tue, sobriety, honesty and fru g a lity to
and in m any cases each deputy is insured
w ard well-defined aims or purposes, and
ag ain st accident; the deputy sheriffs are
thus has helped to raise the sta n d ard of
fu rn ish ed rifles, revolvers, shot guns and
living to a higher level of satisfactio n .
am m unition a t th e expense of the county
H e has given u tilita ria n as well as sp irit
bankers association. A n im p o rtan t fe a
ual value to the fu n d am en tal v irtu es of
tu re of the plan is the signal system which
the average man. The b an k er has tau g h t
is w orked out w ith the local telephone
the challenging lesson th a t honesty and
com pany and its operators, so th a t the
fru g a lity and in d u stry are good fo r so
alarm can be quickly spread to adjoining
ciety. H e has placed the social ra th e r
counties and to sta te h eadquarters.
th a n the individual em phasis upon these
A larm system s are installed in the banks
outstan d in g hum an v irtu es.”
com m unicating w ith the business place
of th e ir various vigilantes. In fa c t every
Don V. Stephens, Fremont, Nebraska:
possible d etail is w orked out f o r th e
“ The com petition th a t is created as the im m ediate cap tu re of ban d its who a t
resu lt of an excessive num ber of banks, tem pt a robbery.
THE
12
“In In d ian a we have sixty-eight coun
ties organized, w ith an arm y of 1,700
men, equipped w ith 800 rifles, 1,250 re
volvers and plenty of am m unition.
“F rom July, 1924, to Ju ly , 1925, which
was the y ear previous to the in a u g u ra
tion of the vigilante organization, th irty th ree In d ian a banks were attacked, w ith
a to ta l loss of $88,000.
“F rom July, 1925, to July, 1926, the
y ear in which the vigilantes were organ
ized, only nine banks were attacked, w ith
a loss of but $19,000.”
Eugene P. Gum, Oklahoma State Asso
ciation Secretary:
“ The g rea test evil th is situ atio n p o r
tends is th a t Congress, in December, will,
no doubt, be again confronted w ith sub
stitu te s fo r the M cN ary and H augen bills
fo r fa rm relief. In my opinion farm re
lief is economic and not political. L ittle
o r no support can be found fo r a govern
m ent subsidy. Such a policy would en
courage production to overrun consum p
tion and if the governm ent m ust purchase
the fa rm ers’ excess profits to stabilize
the price, let them purchase all the ex
cess from the production of all legitim ate
business and shorten the ro u te to ban k
ruptcy.
“ There is little relief to be had from
the other altern ativ e of protective tariff.
W e im port very little com modity th a t we
raise a t home. The ta riff cuts little or no
figure on the prices of ag ric u ltu ral prod
ucts. N othing will su b stitu te fo r the
fixed law of supply and dem and. I t is
our duty to p ractice the doctrine of sound
NORTHWESTERN
BANKER
November, 1926
business. B ankers who m ake ag ricu l
tu ra l loans should know the fa rm e rs’
problem s. W e should know them and as
sist in th e ir solution. Above all, we
should use our influence to help g u ard
the farm ers’ in te rest ag a in st any p o liti
cal demagogue who m ight try to trad e
them a peace offering fo r th e ir vote, u rg
ing upon them some artificial relief th a t
will end in economic d isaster.”
when the first com prehensive statistics
covering the whole country became av ail
able. This period, m easured in school
savings grow th, is rem arkable. The num
ber of schools rep o rtin g savings system s
has increased 315.6 per cen t; the enroll
m ent in such systems 325.3 per cen t; pu
pils p articip a tin g in school savings 635.7
p er cen t; deposits 630.9 per cen t; and
bank balances 661.3 p er cent.”
W. Espey Albig, Deputy Mgr., A. B. A.:
Alex Dunbar, A. B. A.:
“New high to tals in school savings fo r
all tim e m ark the rep o rt as of Ju n e 30,
1926, covering co n tin en tal U nited S tates.
The num ber of system s rep o rtin g school
savings has increased d uring the year
from 760, em bracing 1,557 d istricts, to
872, which em braces 1,818 d istricts. The
num ber of schools has increased from
10,163 to 11,371; the num ber of pupils
enrolled in schools having system s from
3,848,632 to 4,319,741; the p articip a n ts in
school savings from 2,869,497 to 3,403,746; the deposits from $16,961,560.72 to
$20,469,960.88; n et savings from $7,779,922.55 to $8,770,731.05; and bank b al
ances from $25,931,531.15 to $31,984,052.63.
“ The num ber of schools rep o rtin g sav
ings system s increased over last year
11.8 p er cen t; the enrollm ent in such dis
tric ts increased 12.2 p er cen t; pupil p a r
ticipatio n increased 18.5 p er ce n t; de
posits increased 20.6 p er cen t; n e t sav
ings 12.7 per cen t; and bank balances
23.4 p er cent.
“In tim e it is not a f a r cry to 1920,
“W e are happy to rep o rt th a t tw entytwo new clearing house associations were
organized this year, th e to ta l num ber of
clearing house associations in operation
a t this tim e being 389.
“ The clearing house associations in
hundreds of towns and counties today
co nstitute the chief line of defense
ag ain st bad banking p ractice— they are
the chief fa c to r in bringing about re
form s in b anking laws, im provem ent in
banking m ethods and prom otion of sound
banking practices. The clearing house
association today is a g rea t constructive
force in A m erican banking, and its value
is no longer a m a tte r of opinion, fo r the
resu lts speak eloquently fo r themselves.
“ There has been a lively in te rest in
the organization and in stallatio n of credit
bureaus as an effective m eans o f heading
off the p estiferous “ duplicate borrow er”
who seems to th riv e w ith the development
of good roads and autom obile tra n sit
facilities. The num ber of credit bureaus
has been more th an doubled d uring the
y ear—both city and county types show
ing a splendid increase in num ber.”
W age Battle Over McFadden Bill
W
IT H over 6,878 delegates regis
tered a t th e Los Angeles con
vention the fifty-second annual
m eeting of the A m erican B ankers Asso
ciation, w ent down in history as the sec
ond larg est m eeting ever held. I t was
only exceeded by the convention in New
Y ork when som ething over 11,000 dele
gates registered.
The outstan d in g problem was the Mc
F ad d en bill and the H ull am endm ent.
A t a special night session which lasted
u n til 1 :00 a. m. the delegates p resent
by a vote of 413 to 268 w ent on record
as favoring the passage of the M cFadden
bill w ithout the H ull am endm ent.
P revious to this the S tate B ank D ivi
sion had very strongly voted in fa v o r
of the M cFadden bill w ith the H ull
am endm ent. The N ational B ank section
a t its m eeting had gone on record as
fav o rin g the M cFadden bill m inus the
H ull am endm ent. The debate th erefore
a t the n ig h t session was w hether or not
the resolutions of the N ational B ank sec
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
tion would be accepted o r rejected and
these were finally accepted. The resolu
tions are as follows :
“Resolved, T h at in view of the ex ist
ing legislative situ atio n , th e n atio n al
bank division of th e A m erican B an k ers’
A ssociation urge the convention of the
A m erican B an k ers’ A ssociation, in ses
sion now a t Los Angeles, Calif., to rec
ommend to Congress the final enactm ent
of the so-called M cFadden n atio n al bank
bill, H . R. 2, including th e provision re
ch a rterin g the F ed eral reserve banks, a t
the coming session w ith the follow ing
restrictio n s upon b ranch b an k in g :
“1. T h at no n atio n al bank be p e r
m itted in any state to establish a b ranch
beyond the corporate lim its of the m u
n icipality in which the bank is situ ated .
“2. T h at no n atio n al b ank be p er
m itted to establish a hom e-city branch
in any sta te which does n o t a t th e tim e
of such establishm ent p erm it the state
banks to establish branches.
“3. T h at no sta te b ank be p erm itted to
en ter or to re ta in m em bership in the F ed
eral Reserve system if it has in opera
tion any branch which may have been
established a fte r th e enactm ent of H .
R. 2 beyond the corporate lim its of the
m unicipality in which the bank is s it
uated.
“4. T h at no branches, which m ay have
been established, a f te r the enactm ent of
H . R. 2, beyond th e corporate lim its of
th e m unicipality in which the p are n t
bank is situ ated , be p erm itted to be re
tain ed when a sta te bank converts into
or consolidates w ith a n atio n al bank, or
when two or m ore n atio n al banks con
solidate.”
Craig B. H azelwood, vice p resid en t of
the U nion T ru st Company of Chicago,
was elected second vice p resident, which
m eans th a t in two years fro m now he
will succeed to th e presidency of the
A. B. A.
The 1927 convention of th e A m erican
B ankers A ssociation will m eet in H ous
ton, Texas.
November, 1926
THE
NORTHWESTERN
BANKER
13
En Route to and from the A. B. A.
H E fo u r sections of th e F alltonic
Special T rains to Los Angeles were
a g rea t success. The only bad effect
of these tra in s was the gam bling in
dulged in by m any of the bankers on
board who were b ettin g on ju s t w hat
tim e the tra in would reach the various
inland seaports. You would be surprised
if we should tell you how much (?)
money some of our choir leaders made
on these pools, bu t we are sure it will all
go fo r a good cause.
T
Speaking of w inning prizes, the bridge
p arties w ere m ost successful. In fa c t
Ira Rodamar, presid en t of the P ioneer
N ational B ank of W aterloo, Iowa, won a
pound of sausage which indicated th a t he
knew b e tte r th a n to tru m p his p a rtn e r’s
ace.
W hen it comes to cancelled checks,
A. C. Smith, the genial and popular p resi
dent of the Iow a B ankers A ssociation,
had one suit am ong his m any th a t looked
like it had been made of the finest checks
obtainable.
M r. and M rs. Melvin W. Ellis are leav
ing Ja n u a ry 1st fo r a tr ip to A u stra lia
w here M r. E llis is going in the in terests
of H a r t- P a rr T racto r Company, of which
he is p resident. U nder M r. E llis’ able
m anagem ent, the H a r t- P a rr Company
has g reatly increased its business both
in this country and abroad.
T here was probably more “hell” raised
over the H ull am endm ents a t the Los
A ngeles convention th a n over any other
subject. A fte r two conventions had en
dorsed the am endm ents, the Los Angeles
m eeting decided to “flip-flop” and go
on record as endorsing the M cPadden
bill w ithout the H ull am endm ent. W h at
action Congress w ill tak e of course re
m ains to be seen. M any of the big city
bankers believe th a t the M cFadden bill
w ithout the H ull am endm ents is the
best means of p reventing branch banking
from extending beyond the city lim its.
B oth H onorable Morton B. Huli, of Illi
nois, au th o r of the H ull am endm ents, and
H onorable Otis Wingo, of A rkansas, and
senior m em ber of the B anking and C ur
rency Com m ittee of the H ouse of R ep
resen tativ es m ade speeches on the sub
je c t during the convention.
P robably no b anker in A m erica has a
b e tte r record fo r attendance a t A. B. A.
Conventions th a n Andrew Jay Frame,
chairm an of the board of W aukesha N a
tional B ank of W aukesha, W is. M r.
F ra m e who is 82 years of age has a t
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
tended fo rty -n in e of the fifty-tw o n a
tional conventions.
“ Since You W ere H ere B efore” was
the title of a very a ttra c tiv e souvenir
booklet p rep ared by the S ecurity T ru st
and Savings B ank of Los Angeles and
given to the delegates upon th e ir a r
rival. The population in 1920 was 576,000 people, and is now over a million.
The bank deposits d uring the 1921 con
vention were h alf a billion. A t this tim e
they are well over a fu ll billion. The
m ost in te restin g fe a tu re of the booklet
was the p ictu res of down tow n business
p ro p erty tak en in 1921 and in 1926,
showing th e trem endous im provem ent in
business p ro p erty .
Louis E. Bliss, vice presid en t of the
C alifornia Bank, extended an in v itatio n
on behalf of th e ir p resident, M r. A. M.
Chaffey, to m any of the v isitin g bankers
to atten d a luncheon which was given on
T uesday noon a t the C alifornia Club.
M any in terestin g ta lk s were given by
such men as John Blair, Walter W. Head
and others. M r. A. M. Chaffey pointed
out th a t when he came to Los Angeles
forty-five years ago the population was
12,000, and the reg istra tio n a t the con
vention was over 6,000 or over h alf of
the population of the city of Los A n
geles forty-five years ago.
M ost of the delegates from o th er states
a fte r being in C alifornia fo r a few days
decided th a t every woman was a movie
queen and every m an a bank branch
m anager.
Cecil B. DeMille, who is now p roduc
ing “K in g of K in g s” a t his studio in
Hollyw ood, in addressing the bankers
who visited him, said, “W e are glad to
welcome th e money changers of A m erica
to E g y p t and to m eet the money changers
in o u r tem ples.” M r. DeM ille is produc
ing all in colors w hat he considers will
be the g rea test p ictu re he has ever filmed.
In cid en tally , it costs him $17,500 a day
for his p ay roll alone.
P robably the m ost unique fe a tu re of
the convention f o r the men a t least was
th e b re a k fa st given by th e B rea k fast
Club of Los Angeles. The B rea k fast
Club is “n o n p artisan , nonpolitical, non
se ctarian ”— a club fo r “he-men.” I t is
know n as the “ S hrine of F rie n d sh ip ”
and in o rder to belong, “You m ust first
be a m an, then you m ust be a frie n d of
an other m an, and finally you m ust be
capable of being a frie n d to m en.” The
B re a k fa st Club has done much to p ro
mote good fellow ship am ong th e bu si
ness men of Los Angeles which has in
tu rn resu lted in boosting and developing
the city.
Otto H. Kahn and Charlie Chaplin, to
g eth er w ith a num ber of o th er gen tle
men, and a bevy of very b eau tifu l movie
actresses dined to g eth er on T uesday eve
ning a t the Cocoanut Grove in the Am
bassador H otel. W h eth er these two gen
tlem en are p lan n in g to organize a new
movie combine is n o t known.
M ost of the “n ativ es”— we m et two
while we were a t Los Angeles— were com
m enting on th e fa c t th a t the W . C. T. U.
convention preceded the B ankers Con
vention. W h at significance th is m ight
have, we do n o t know, because every
b an k er is know n fo r his p u rity of p u r
pose and his liquid assets.
R etu rn in g home fro m Los Angeles
m any bankers of th e m iddle w est rode
on the special tra in arran g ed by the
N o rth ern Pacific officials headed by M.
M. Goodsill, general passenger agent of
th e N o rth ern Pacific R ailroad. M r. Goodsill and his associates did everything
w ithin th e ir pow er to m ake th e trip
p leasan t, enjoyable, and com fortable,
and it was th e concensus of opinion of
th e 150 bankers on board th a t they suc
ceeded m ost adm irably.
Stops were
made along the w ay a t San F rancisco,
P o rtlan d , Tacoma, Long View, Spokane,
B u tte, Bozem an and M inneapolis and
St. P aul. In each one of these places
the bankers were en tertain ed w ith auto
rides about th e city and usually lunch
eons or banquets a t night, depending
upon w hat tim e th ey reached th e v a ri
ous cities.
W. E. Rhoades, vice p resid en t of the
U nited S tates N atio n al B ank of Omaha,
and his wife, were in atten d an ce a t the
convention. M r. Rhoades has been spend
ing some tim e in Reseda, Calif., w here
he has been reg ain in g his health.
Houston, Texas, was chosen fo r the
1927 m eeting of th e A m erican B ankers
A ssociation and delegates w ill again have
an o p p o rtu n ity to enjoy the w estern type
of h o sp itality and especially th e Texas
v arie ty th a n which th ere is none b etter.
Jay D. Rising, vice p resid en t of the
N ational P a rk B ank of New York, and
his w ife, arriv ed early a t the conven
tion and spent a m onth to u rin g th e w est
ern states before retu rn in g to New York.
I t is understood th a t J a y has his golf
game down now w here the boys co n trib
ute reg u larly w henever they play w ith
him.
14
THE
NORTHWESTERN
November, 1926
BANKER
Photos on the Opposite Page
On the opposite page are several snapshots ta k e n a t the A. B. A. convention last month in Los Angeles. No. 1 is a photo of the
boat for C atalina Islan d ; No. 2, J . M. Dinwiddie, president, Cedar B ip id s Savings Bank, Mrs. F ran k Welch, F ran k C. Welch, vice presi
dent and cashier, Peoples S avings B ank, and Mrs. J. M. D inw iddie, all of Cedar B apids; No. 3, John B. McDougal, vice president, Pacific
Southwest T rust and Savings Bank, Los Angeles, and Mrs. McDougal (p ictu re ta k e n on b o at en route to C atalin a Islan d ) No. 4, Group
photo of the N orthw est B ankers Special N orthern Pacific tra in taken a t B utte, Mont., on the retu rn from the convention; No. 5, F . W.
McGuire, executive a s s ’t N orthern Pacific Bailway Co., St. Paul, H. Y. W ilmont, general passenger dept., M. M. Goodshell, general pas
senger agent, and E rnest M. Willis, executive a s s ’t, all of the N orthern Pacific, St. P a u l; No. 6, M rs. C raig B. H azelwood, and her wellknown husband, vice president of the Union T rust Co., Chicago, and nowly elected second vice president of the A. B. A .; No. 7, scene a t
C atalina Islan d ; No. 8, Bobert M. Cobb, resident m anager, Financial Sales Dept., General Motors Acc. Corp., D etro it; and Joseph L.
Meyers, vice president, General Motors Acc. Corp., New Y ork; No. 9, B ay N yem aster, vice p resident, A m erican Commerc. and Savings
Bank, Davenport, Iow a; No. 10, L. A. Andrew, Iow a banking su perintendent, M. W. E llis, president, S ecu rity T ru st and Savings B ank,
Charles City, Mrs. W. G. C. B agley and W. G. C. B agley, vice president, F irst N ational Bank, Mason City, Iow a; No. 11, A lfred K. F ore
m an, vice president, Forem an N atio n al B ank, Chicago, Mrs. C harles A. B urns, Chicago, and F ra n k W arner, secretary , th e Iow a B ankers
Association.
New Officers of the A. B. A.
F F IC E R S fo r the various divisions
and sections of the A m erican
B ankers A ssociation elected d u r
ing the Los Angeles convention were as
fo llo w s:
The new ly elected officers of the m ain
organization w e re : M elvin A. T raylor,
p re s id e n t; Thomas R. P reston, vice p resi
dent, and Craig H . Hazelwood, second
vice president. M r. T raylor, who suc
ceeds O scar W ells, is president both of
th e F irs t N ational B ank and the F irs t
T ru st and Savings B ank of Chicago. M r.
P resto n, who succeeds Mr. T raylor as
first vice president, is presid en t of the
H am ilton N ational B ank and the H am il
ton T ru st and Savings B ank, of C h a tta
nooga, Tenn. Craig B. Hazelwood, who
succeeds Mr. P resto n as second vice p res
ident, is vice president of the Union
T ru st Company and chairm an of the
board of the Lake Shore T ru st and Sav
ings B ank of Chicago.
O
State Bank Division
Officers nam ed fo r the S tate B ank D i
vision w ere: G. E. Bowerman, president
of the F rem ont County B ank of Sugar
City, Idaho, president; M. H. Mallott,
p resid ent of the C itizens B ank of A bi
lene, K ansas, vice p resid e n t; M. P lin
Beebe, presid en t of the B ank of Ipsw ich,
Ipsw ich, South D akota, and L. A. A n
drew, president of the Citizens Savings
Bank, O ttum w a, Iowa, were nam ed mem
bers of the executive committee.
F o r the N ational B ank D ivision those
selected w e re : Charles W. Carey, p res
ident of the F irs t N ational B ank of
W ichita, K ansas, p resid e n t; E lm er A.
O nthank, presid en t of the S afety F u n d
N atio nal B ank of F itch b u rg , Mass., vice
p re sid e n t; members of the executive
com m ittee: (three year term s), C hair
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
man, E. H. Sensenich, p resid en t of the
W est Coast N ational B ank of P o rtlan d ,
O regon; F . B. W ashburn, president of
the M echanics N ational B ank of W orces
ter, Mass., fo r th e F irs t F ed eral Reserve
d istric t; R. F . M cNally, vice presid en t of
the N ational Bank of Commerce of St.
Louis, Mo., fo r the E ig h th F ed eral R e
serve d is tric t; J. W. B arton, vice p resi
dent of the M etropolitan N ational B ank
of M inneapolis, M inn., fo r the N inth
F ed eral Reserve d istric t, and R. E. H a rd
ing, vice p resid en t of th e F o rt W o rth
N ational B ank of F o rt W orth, Texas, fo r
the E leventh F ed eral Reserve d istrict.
Trust Company Division
F o r the T ru st Com pany D ivision offi
cers elected w e re : E dw ard J. Fox, p resi
dent of the E asto n T ru st Com pany of
E aston, Pa., p resid e n t; W a lte r S. McLucas, chairm an of the B oard Commerce
T ru st Com pany of K an sas City, Mo., vice
p re sid e n t; members of th e Executive
Com mittee a r e : J ames H . P erkins, p res
ident of the F arm ers Loan and T ru st
Com pany o f New Y ork C ity; J. Shep
p ard Sm ith, p resid en t of the M ississippi
V alley T ru st Com pany of St. Louis, M o.;
W . J. Stevenson, vice p resid en t of the
M inneapolis T ru st Com pany of M inne
apolis, M inn.; G ilbert T. Stephenson,
vice presid en t of the W achovia B ank and
T ru st Com pany of R aleigh, N. C.; and
J. A rth u r H ouse, p resid en t of th e G uar
dian T ru st Com pany of Cleveland, Ohio.
Officers fo r the S tate Secretaries sec
tion to serve a r e : H a rry G. Sm ith, sec
re ta ry of the K entucky B ankers A sso
ciation, of Louisville, K y., p re s id e n t;
W illiam A. P h ilp o tt, J r., secretary of th e
Texas B ankers A ssociation, of D allas,
Texas, first vice p resid e n t; F ra n k W a r
ner, secretary of th e Iow a B ankers A s
sociation, of Des Moines, Iowa, second
vice p resid e n t; R obert E. W ait, secre
ta ry of the A rk an sas B ankers A ssocia
tion, of L ittle Rock, A rk., se cretary -treas
urer. The above officers co n stitu te the
B oard of Control, to g eth er w ith Eugene
P. Gum, secretary of the Oklahom a
B ankers A ssociation of O klahom a City,
Okla., and C. F . Zimm erman, secretary
of th e P en n sy lv an ia B ankers A ssocia
tion of H untingdon, Pa.
Clearing House Section
Those selected fo r the C learing House
section a re : Jo h n P. Downing, vice p resi
dent of the Citizens U nion N ational Bank
of Louisville, Ky., p resid e n t; 0 . H ow ard
W olfe, cashier of the P h ilad elp h ia G ir
ard N ational B ank of P hiladelphia, Pa.,
vice p re sid e n t; members of the Executive
C om m ittee; (three year term s) H al Y.
Lemon, vice p resid en t of the Commercial
T ru st Company of K an sas City, Mo., and
Jam es R. Leavall, vice presid en t of the
C ontinental and Commercial N ational
Bank, of Chicago, 111.
The new officers fo r the Savings
B ank division a r e : W . R. Morehouse,
vice p resid en t of the S ecurity T ru st and
Savings B ank of Los Angeles, Calif.,
p resid e n t; George L. W oodw ard, tre a s
u rer of the South N orwalk Savings Bank
of South Norwalk, Conn., vice p resid en t;
members of the E xecutive C om m ittee;
L. H ow ard M ann, vice p resid en t of the
A m erican S ecurity and T ru st Company
of W ashington, D. C., A ustin M cLanahan, p resid en t of the Savings B ank of
B altim ore of B altim ore, Md., A. C. Rob
inson, p resid en t of the Peoples Savings
and T ru st Company of P ittsb u rg h , Pa.,
and R. C. V an D enberg, vice p resid en t of
th e Savings B ank of U tica, of U tica,
New York.
November, 1926
THE
NORTHWESTERN
BANKER
SNAPPED AT LOS ANGELES
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
15
16
THE
NORTHWESTERN
BANKER
My First Banking Job at a Dollar
Per Day
A n in te rv ie w w ith
O. P. M iller, p io n e e r b a n ker o f R o c k R a pids, Iow a
N’ T H E S E days of radios, autom obiles
and the high cost of living, few bank
ers woud have the nerve to w ork fo r
a dollar a day. B ut 0. P . M iller, veteran
Iow a banker, president of the Lyon
County N ational B ank of Rock Rapids,
received th a t princely salary when he
first opened a bank a t E lgin, Iowa, in
October, 1875— a h a lf century ago.
M r. M iller describes some of his early
tria ls and trib u latio n s as fo llo w s:
I
No Bank in Elgin
“W ay back in 1875 I was engaged w ith
J . A. H oagland in the drug business u n
der the firm name of M iller & H oagland,
a t E lgin, P a y e tte county, Iowa. A t th a t
tim e E lgin was w ithout a bank and no
one had the nerve to send a personal
check aw ay from home to pay a bill. W e
were obliged to go to some banking town
to purchase a d ra ft and as E lgin was sev
eral miles from such a tow n, it was very
inconvenient to be obliged to trav el th a t
distance fo r the purpose of purchasing
d rafts.
“Dowse & C arpenter were engaged in
the m illing business a t E lgin a t this tim e
and as it was necessary fo r them to go to
W est Union, the county seat, every tim e
they shipped a carload of flour fo r the
purpose of draw ing d ra ft on the same,
they, too, were g reatly inconvenienced,
and it occurred to Dowse & C arpenter,
my p a rtn e r and myself, th a t it m ight be
possible fo r us to s ta rt a little exchange
bank o r office and consequently we w ent
to W est U nion to consult E. A. W hitney,
cashier of the F a y e tte County N ational
Bank, as to feasib ility of sta rtin g an ex
change bank. H e discouraged us by say
ing th a t it would take a t least $10,000,
and as not one of us could raise to ex
ceed $1,000 each, we dropped the m atter.
B ut as tim e passed on we were m ore and
more determ ined to plan some way to
avoid leaving home fo r the purpose of
purchasing exchange.
Consulted Senator Larrabee
“W e then w ent to Clerm ont and con
sulted w ith H on. W m. L arrabee as to the
ad v isability of sta rtin g an exchange
bank, b u t w ith no idea of entering the
general banking business. H e advised
us th a t it was en tirely feasible, saying
th a t if we had $4,000 or $5,000 to p u t into
the business th a t we could get along very
nicely. W e asked him if in case we
needed a little more money a t any tim e
he would accom modate us, and if so, to
w h at extent. H e replied he would tak e
our note fo r $5,000, b u t did not th in k we
would find it necessary to borrow.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
O. P. M IL L E R
V eteran b a n k e r a t Roek R apids, Iowa.
P hoto was ta k e n several decades ago when
Iow a was more or less an in fa n t state.
“N ever having had any experience in
banking, not even to the ex ten t of having
a bank account, I asked S enator L a rra
bee to go to Chicago and buy us a bank
outfit. H e replied in the negative, saying
th a t if we did not know enough to buy an
outfit, we could not be capable of ru n n in g
even an exchange office. I w ent to Chi
cago in the fa ll of 1875 and purchased a
safe and some fixtures, and in October,
1875, we opened an exchange office in the
rea r end of our drug store, nam ing the
same the Exchange B ank of Elgin.
Salary, Dollar a Day
“I arran g ed w ith W m. M cK inley to
open up a set of bank books fo r me. I
PIONEER DAYS
On this and the opposite page are
the first of a series of articles dealing
with pioneer banking days in Iowa,
Nebraska, Minnesota, North and South
Dakota, which will be published by
the Northwestern Banker in early is
sues. With the articles will appear a
number of old-time photographs,
showing scenes and characters of early
banking days in the middle west.
This magazine w ill welcome con
tributions both of old-time photo
graphs and reminiscences of pioneer
hankers, for publication, from any of
its readers. If you have a good story,
or an interesting photograph, mail it
to the Northwestern Banker.—Editor’s
Note.
November, 1926
agreed w ith my p a rtn e rs to fu rn ish the
room, light, heat and do the w ork fo r
$1.00 a day. W e were not expecting to
receive very m any deposits, b u t to our
surprise it was n o t long u n til we had, if
I rem em ber correctly, som ething like
$10,000 in deposits. As Clermont, the
home of S en ato r L arrabee, was only a
few miles aw ay, he o ften called on us,
and a f te r we h ad been ru n n in g a few
m onths he suggested th a t we incorporate
u n d er the savings bank law, saying th a t
if we would do th a t and capitalize the
same a t $25,000, we, to g eth er w ith our
frien d s a t Elgin, could tak e w hatever
stock we w anted and he would tak e the
rem ainder.
Soon a fte r, we took the
necessary steps and organized w hat was
called the C itizens Savings B ank of E l
gin, w ith Col. R. A. R ichardson as p resi
dent and the w riter as cashier.
“I then agreed to do all the work, f u r
nish the room, light, fuel, etc., fo r $1,000
a year. Business increased rap id ly and
it was not long u n til we had, if I rem em
ber correctly, $25,000 or more deposits.
I was unable to do all th e w ork alone fo r
the en tire y ear and a t the end of about
nine m onths I procured the services of
a young m an who had tak en a business
course to assist me, so th a t I did not
have very much le ft of th e $1,000 a fte r
paying his salary and o th er expenses.
“I continued to w ork as cashier u n til
J a n u a ry 1, 1880. A fte r I had served as
cashier fo r two or th ree years, Mr. L a rra
bee was very anxious to have me go w est
and s ta r t a bank, as he tho u g h t the op
p o rtu n ities were v ery much b e tte r f a r
th e r west. So, in Ju n e, 1879, he induced
me to go w ith him as f a r w est as Algona,
then made me a proposition th a t if I
would go to any place w est of Algona
and organize a bank, he would fu rn ish
w hatever money was necessary.
“A fte r v isitin g Luverne, M innesota,
Sioux F alls, South D akota, and Rock
Rapids, Iowa, I concluded to cast my
lot w ith th e people of Rock R apids. Call
ing on J . K. P . Thompson & Company,
bankers and real estate dealers, I told
Mr. Thompson th a t I was looking fo r a
place in w hich to s ta r t a bank and he sug
gested th a t they would like to jo in me
and my associates, as they did n o t have
cap ital enough to handle the business.
Moved to Rock Rapids
“R etu rn in g home I rep o rted to S enator
L arrabee th a t I th ought Rock R apids
would be a fine location fo r a bank, it be
ing th e county seat of Lyon county, n o t
w ith stan d in g the grasshoppers were an
nual v isito rs from 1872 to 1878, and th a t
I believed th a t $25,000 cap ital would be
necessary to handle the business. I also
recom ended th a t we tak e over th e bu si
ness of Thompson & Company. M r. L a r
rab ee was favorable to th e p lan and we
decided to s ta rt a p riv ate b an k u n d er
th e law of special p artn e rsh ip , w ith the
firm nam e of M iller & Thompson, general
(C ontinued on page 27)
November, 1926
THE
N O R T H AY E S T E R N
17
BANKER
Starting a B a n \
70 MILES
from a Railroad
Reminiscences of early days in ls[ebras\a
by S. H. Burnham, president, the First
1Rational Ban\ of Lincoln
fo r m aking money. ‘W ell,’ I said,
‘You m ight go out th ere and see
w hat you m ight go out th ere and
see w hat you th in g of it, because if
we should s ta rt a bank you ivould
have to ru n it.’
S. H. BURN HA M
H E first bank I sta rte d was sev
enty miles from a railro ad and there
was no banking lawT in the sta te of
N ebraska,” declares S. H. B urnham , v et
eran presid en t of the F irs t N ational of
Lincoln, com m enting on early banking
days of the C ornhusker state. H e con
tinues :
“In 1883 I was loaning money here in
Lincoln when one day a gentlem an came
into the office and said to m e : “ W hy don’t
you sta rt a bank up at Broken Bow, Ne
braska, in C uster co unty?’ I had never
h eard of the tow n nor been any fu rth e r
west th a h Crete, N ebraska, a t th a t tim e.
I s a id : ‘How large is the tow n and on
w hat ra ilro a d ? ’ H e then said th a t there
was a blacksm ith’s shop and a post office
an d th a t it was seventy miles from the
railroad, the n earest point being K earney
on the south and G rand Islan d on the
east. B ut he said th a t they had ju st voted
to change the county seat from AVesterville to B roken Bow and th a t th ere would
be quite a tow n Avithin a very sho rt time.
H e stated th a t it was in a good agricul
tu ra l country and he thought a little
bank would do Avell there.
T
No Banking Laws
“ There was no banking law in N e
b rask a a t th a t tim e. I t seemed rid ic u
lous to me to th in k of s ta rtin g a batik
seventy miles fro m a railroad, b u t a fte r
m aking some inq uiry I said to my p a r t
ner, M r. L. H. Je w e tt, ‘W h a t would you
th in g of going out into the fro n tie r and
ru n n in g a little b a n k ? ’ H e thought he
would like it if the prospects were good
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
“H e w en t to K e a rn e y on th e B u r
lin g to n a n d to o k th e ivagon th a t
c a rrie d th e m a il u p to W e ste rv ille ,
w h ich w as th e n th e co u n ty s e a t a n d
th e o ld e st to w n in th e co u n ty .
W h e n th e y fo u n d o u t t h a t he w as
th in k in g o f s ta r tin g a b a n k th e y w ere
v e ry an x io u s to h av e h im lo c a te th e re ,
a n d th e m e rc h a n t aaT i o OAAmed th e g e n
e ra l sto re offered to g ive h im one of
h is f r o n t w indow s, le t h im p u t h is sa fe
in th e re a n d p a r titio n off a little space
f o r a b an k . HoAvever, he Avent on over
to B ro k e n B ow a n d fo u n d t h a t th e y Avere
ta lk in g b ig a b o u t th e co u n ty s e a t w hich
Aims to be m oved th e re in a sh o rt tim e,
a n d th e a m o u n t o f b u ild in g th a t w ould
be done, a n d he th e n cam e hom e a n d r e
p o rte d . H e sa id he th o u g h t he w ould
lik e to tr y it.
Almost Changed H is Mind
“ So, in th ree or fo u r Aveeks, Avhich Avas
late in October, we both sta rte d out there
to decide Avhich place to choose f o r the
bank. As I stated , I had never been west
of Crete. AYhen we got out to K earney
the tra in Avas late. AYe got in th ere long
a f te r d ark and fo u n d a big snow storm
on. AYe w ent into the little hotel and the
next m orning, while I had ÜAred all my
life in the sta te of M aine w here it was
not unusual to see a big snoAvstorm, th e
w orst snow storm th a t I haA^e ever seen
Avas rag in g and continued all th e day and
no one th o u g h t of going out of th e hotel.
A few trav elin g men w ere th ere and Avhen
I thought of th a t storm and a seventyfive-mile tr ip in an old tw o-horse wagon
up into the new country, and seventy-five
miles back, it certain ly was very discour
aging to a tenderfoot. W hen we awoke
the second m orning, it was still snowing
and M r. JeAvett sa id : ‘W ell, w hat do you
th in k ? H oav do you fe e l? ’ I sa id : ‘I
th in k t h a t if th e re is e v er a tr a in th ro u g h
fro m th e Avest h e a d e d east, I sh all ta k e
it.’ H e s a id : ‘I d o n ’t blam e y o u .’ I
m ad e u p m y m in d t h a t if I w en t o u t in to
th a t c o u n try la te in th e fa ll th a t I w ould
n e v e r g e t b a c k u n til th e n e x t sp rin g .
B u t he s a i d : ‘I ’ll Avait u n til th e sto rm
is o v er a n d Avhen th e sta g e s ta r ts o u t, I ’ll
go.’ I s a i d : ‘All r ig h t a n d w h ich ev er
to w n y o u th in k is b e st Ave’ll s t a r t a b a n k
th e re .’
“H e Avent to W esterville again and
when he got th ere they talked to him so
strongly th a t he decided th a t it would
be a long tim e before B roken Bow would
be as large as W esterville and th a t he
had b e tte r s ta rt in WesterATille, b u t he
concluded th a t he would ru n over to
Broken Bow anyAvay, which Avas about
eighteen miles. H e, however, le ft his
g rip and everything he carried w ith him
a t AYester\rille and tho u g h t he would be
back th a t night.
“W h en he got over to Broken Bow, some
fo u r or five weeks a fte r he had been there
the first tim e, th ere had been such h won
d erfu l change and th ere were so m any
little buildings going up th a t instead of
going back to AYesterville he sent a note
back by th e stage d riv er to send his grip,
as he had decided on Broken Bow.
By Stage from Kearney
“I shipped him a safe and about three
Aveeks la te r I sta rte d th ere w ith his wife,
M rs. Je w ett, who had ju st come fro m the
east. W e took w h at they called the stage
from K earney, Avhich consisted of two
old p lug horses and an old three- or fourseated wagon. They told us th a t we
would stop a t Calhoun’s R anch over
night. W e saAV very few houses on the
Avay, b u t I looked forAvard to Calhoun’s
R anch as a g rea t place. I h ad never seen
a sod house and I expected to find w hat
we would have called down in New E n g
land, a big old-fashioned tavern. W hen
Ave did get sight of Calhoun’s R anch, it
consisted of a little one-story sod house,
about five or six rooms, all adjoining on
(C ontinued on page 35)
18
THE
Charles A. Fisk, vice president of the
A m arillo B ank and T ru st Company, and
p resident of the Texas B ankers A ssocia
tion, has been strongly in fa v o r of o r
ganized effort which would assist in pool
ing the cotton surplus so as to hold an
estim ated overproduction of fo u r m il
lion bales tem porarily off of the m arket.
The south is faced w ith the larg est cot
to n crop in its history and P resid en t
Coolidge has already appointed a Cotton
Com mittee to help solve this problem .
—$—
The educational committee of the
South Dakota Bankers Association has
been pointing out the w eaknesses of the
South D akota B ank G uaranty Law. On
Ja n u a ry 1st of this year there was an
excess of $43,000,000 in certificates of in
debtedness outstanding. The loss cre
ated by failu re to m eet in te rest charges
alone am ounts to more th a n $2,000 every
day. The B ank G uaranty Law in South
D akota, as in every other state, has
proven a failure.
—$—
Returning from the American Bankers
Convention we happened to buy a p ap e r
in one of the sm all tow ns in M ontana and
noticed the follow ing w ant a d : “P a rty
who borrow ed guns from car in fro n t
of M etropolitan Cafe call a t Ingham H o
tel fo r shells—have no use fo r them .”
—$—
Charles T. Root, president of the
A m erican A ssociation fo r Scientific T ax
ation, points out th a t Roger Babson
shows th a t our presen t ta x m ethods are
d rain ing business of from 15 p er cent
to 65 p er cent of its net profits per year,
and th a t th is sum is w ithdraw n from
the p urchasing pow er and the capital
savings and business investm ent of the
natio n each year.
—$—
F. C. Waples, president of the M idland
M ortgage Company, of C edar Rapids,
Iowa, has issued a very a ttra c tiv e fourpage fo ld er announcing the opening of
th e com pany’s new offices in the M er
chants N ational B ank Building. This
circular points out th a t the com pany has
over $30,000,000 in o utstanding loans in
the sta te of Iow a and th a t one dollar out
of every fifteen dollars loaned on farm s
by m ortgage com panies and insurance
com panies in Iow a fo r the p a st two years
was handled by the M idland M ortgage
Company.
—$—
More than fifteen million A m ericans
now own shares of stock in corporations
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
NORTHWESTERN
BANKER
doing business in the U nited S tates.
This num ber has more th an doubled since
before the w ar according to one au
th o rity . This same au th o rity estim ates
th a t there were about 3,600 bond sales
m en in the U nited S tates tw en ty years
ago, w hereas, today th ere are ap p ro x i
m ately 36,000. W e have become a n a
tion of investors.
— $—
E. L. Mattson, vice p resid en t of the
M idland N ational B ank and T ru st Com
pany of M inneapolis, is being urged
again by his m any frie n d s to en ter the
race fo r the second vice presidency of
the A. B. A. n ex t year. M r. M attson
stepped aside last y ea r in o rd er th a t
Thomas R. P re sto n would have no oppo
sition and his frien d s believe th a t Mr.
M attson should be elected to th is posi
tion a t H ouston. Also, it is a n ational
bank m an’s tu rn to be elected, in view of
the fa c t th a t M r. Hazelwood, rep rese n t
ing the state banks, was elected this
year.
— $—
Grant McPherrin, p resid en t of the
C entral S tate B ank of Des Moines, and
re tirin g p resid en t of the S tate B ank D i
vision of the A m erican B ankers A sso
ciation, in his annua] address, said, “We
take p a rtic u la r pride in the progress
made in increasing the efficiency of state
bank supervision through freein g th is re
sponsible office from p a rtisa n politics, in
creasing the com pensation and also se
curing a longer term of office fo r bank
com missioners, w ith provision fo r an ade
quate force of qualified exam iners.” One
of the best ways to com bat the b ank
g u ara n ty ag itatio n and to elim inate bank
failu re s is to follow th is suggestion of
the S tate B ank D ivision and see th a t
more freq u en t and m ore efficient exam i
nations are m ade of our banks.
— $—
William N. Jarnagin, presid en t of the
C entral M an u factu rin g D istric t B ank of
Chicago, stopped oft a t San F rancisco on
his w ay home from Los Angeles w ith the
thought in m ind of p u rch asin g some new
curios fo r his very fine collection. H e
stepped into one of th e large, o riental
curio shops in San F rancisco, and a fte r
looking about fo r some tim e asked one
of the clerks, “How m uch is th a t J a p a n
ese idol w orth— th e one n ea r the d oor?”
“I t is w orth a g re a t deal,” replied the
clerk. “I t ’s the p ro p rie to r.”
_
—
$ —
William B. Riddle, a ban k er of A t
lan tic
City, has p ro tested before his
November, 1926
county tax board because they have as
sessed his set of false teeth a t $1,200
and are im posing a tax thereon of $30.50.
M r. R iddle p aid $2,000 fo r the teeth and
W a lte r J . M cD evitt, an assessor, said
th a t they should be taxed. W e p re
sume th a t Mr. Riddle feels th a t he
opened his m outh once too often, o th er
wise the only “fa lse ” th in g about him
would not have been discovered.
Kirk Griggs, secretary S tate B anking
D epartm ent of N ebraska, levied a spe
cial assessm ent of one-fourth of 1 p er
cent ag ain st all sta te banks in N ebraska
la st m onth. This money was credited
to the D epositors’ G u aran ty F u n d . Sec
re ta ry Griggs an ticip ates the loss yet to
be faced in insolvent sta te banks will
am ount w ith certificates rem aining u n
paid in excess of cash on hand to about
five m illion dollars.
— $—
James E. Baum, who is in charge of
the P ro tectiv e D ep artm en t of the A m eri
can B ankers A ssociation, rep o rted a t the
Los Angeles m eeting th a t th ere had been
the g re a te st drop in attac k s by bank
crim inals ag ain st members of the A m eri
can B ankers A ssociation recorded fo r
any year in its th irty -six years of w ar
fa re on th is class of crooks. Mr. Baum
also pointed out th a t v igilante organiza
tions also existed in Iowa, M innesota
and W isconsin, w here crim inal attac k s
have reached a very low level.
— $—
Walter S. Greenough of the F letc h er
Savings and T ru st Com pany of In d ia n
apolis, is an exam ple of a b an k er who
can also be a poet and be both success
fully. M r. Greenough has fo r years been
w ritin g sh o rt stories, poems, and a r
ticles fo r various m agazines.
H is
“Je th ro Boggs” the biggest lia r in seven
states is one of his well-known poem
ch aracters. H is first volume of poems
is ju s t being published and is entitled,
“ Three Skallyw ags.”
P. M. Reed, w ithout any of his asso
ciates, testifies over the sig n atu re of his
p riv ate secretary th a t he recen tly m ade
a hole in one a t a golf to u rn am en t of
fam ous a rtists held a t N ippersink Lodge,
Genoa City, W is. M r. Reed was the
honor guest, and ju st to show the a r t
ists th a t bank ad v ertisin g is not his only
specialty, he drove stra ig h t to the peg,
m aking th e seventh hole w ithout a roll
in one, w ith a S paulding “K ro-flite” 17.
To prove it w asn’t luck, on th e next
round, P. M. drove his D unlop “M axfli”
w ithin one and a q u a rte r inches of the
peg.
— $—
The United States Chamber of Com
merce is p lan n in g to u n d ertak e a broad
stu d y of the banking and cred it m achin
ery of the country w ith special atten tio n
to the operations of the F ed era l Reserve
(C ontinued on page 36)
November, 1926
THE
N O R T H AV E S T E R N
BANKER
19
Charting Business Conditions in
Bohuncus, Minnebraska
H E R E has lately arisen in the
sm aller com m unities of this section
an in sisten t dem and fo r a financial
service, in the form of periodical bulle
tins and ch arts suitable fo r d istribution
by banks— one th a t w ill be adapted to
the needs of the average sm all-tow n bank
depositor. V arious individuals and o r
ganizations are now fn rn ish in g these
“services,” b u t since they are all national
in scope, they tak e in too much te rrito ry
to be of any g rea t value to the average
m iddle-w estern bank depositor.
A t the urgent behest of bankers all
over this section, the w riter has a t last
consented to organize the field and to
compile, from the rep o rts received, a
series of m onthly bulletins w hich will
be d istrib u ted to subscribers when, as,
and if iss u e d ; these rep o rts to be made
up so as to presen t the situ atio n in the
p a rtic u la r field of each subscriber. I t
has been learned th a t several national
“services” of this ch aracter are being
fu rn ish ed to subscribers a t an average
ra te of $1.50 p er year, so it seems no
more th an f a ir to m ake a charge of, say,
$1.25 p er y ear fo r our service, or two
years fo r $2.00.
To illu stra te the value of our service
to bankers, let us suppose th a t Jo h n Jones
applies fo r a loan of $80 on December
13th. No longer is it necessary fo r the
banker-subscriber to hem and haw while
he looks up the sta te of his cash re
serves, notes and certificates due, and
volume of contem plated live stock ship
m ents in his te rrito ry . H e sim ply s a y s :
“Fm a fra id we can’t help you out this
month, John. The M acychart is clear
down to 76.88.
Come in again next
m onth.’ Or, if the month is F ebruary,
his reply is, “ Sure, John. The M acychart
stands a t 133.07 Couldn’t use about
$55 more, could y o u ?”
In order th at prospective subscribers
may know the character of the inform a
tion to be furnished, it has been decided
to publish a sample copy of the service in
T h e N orthwestern B anker . This sam
ple happens to have been made up fo r
subscribers in and around Bohuncus,
M innebraska.
P artic u lar attention is
called to the Macychart. Note how the
Norm Line pursues the even tenor of its
course, halfw ay between a p a r of 100 and
a norm al of 98.6. C ontrast this w ith the
ordinary chart, in which this line is al
lowed to w ander about all over the graph,
producing a result th at is not only con
fusing to the reader, but fails even to
please the eye. The most striking thing
about our chart is its unfailing sym m etry;
we stand ready at all times to refund his
T
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
$1.25 to any subscriber who can find a
place where our draw ing pen has slipped.
Je rry Brown, our correspondent no rth of
town, rep o rts a bum per crop, but from
the south, Jak e K lein rep o rts a total fail
General Conditions
ure.
W e have learned from reliable
Our field rep o rts indicate th a t the reg u sources, however, th a t Ja k e didn’t p lan t
la r m onthly decline of 10 per cent in
any rutabagas this year, and we are in
general business conditions in Bohuncus
clined to attrib u te the failure of his crop
has occurred in O ctober as per schedule.
largely to th a t omission.
This having been going on fo r some
D airy Production. — Production, as
th irty -six m onths now, th e discerning
measured by cream checks cashed a t the
subscriber will a t once perceive th a t
local bank, showed a g ratify in g increase,
there are no business conditions left, from 6 bushels and 17 checks in Septem
and will regulate his investm ent program
ber, to 8 bushels and 1 peck of checks
accordingly. F o rtu n a te ly , however, the
in October. B utter, which was strong
M acy index finger (I mean, figure) stands
last month, is stronger than ever now.
a t 147.6176 p er cent of norm al, and the
Most of the herds having now been taken
doctors who are w orking over it hope to
off grass, there are reported to be fewer
bring it down to norm al by Christm as.
specks in the milk than last month.
Collections are rep o rted unchanged—■
Farm M achinery.— Sales of farm m a
none la st m onth, and none in October.
chinery picked up w onderfully in Octo
T here were no business failu re s reported
ber, due to a 100 p er cent increase in m a
from Bohuncus f o r October, b u t th is is n ure spreader sales. There was one such
only n atu ra l, since th e whole dog-goned
sale in October, as com pared w ith none
bunch have been failu re s ever since they
in September. No doubt the w arm ing up
sta rted .
T otal liab ilities stan d at
of the fall political cam paign is account
$679.30, b ut our sta tistic ia n is unable to
able in p a rt fo r this improvement, b u t our
explain why anybody ever tru ste d them
statistician is not certain w hether to a t
fo r th a t much money.
tribute the increased sales o f spreaders
to Republican prosperity, or vice versa.
Agricultural Conditions
Cotton.— P roduction of cotton is u n
R utabaga Production— Our field reports changed from last month, and stands at
on ru tab ag a production are conflicting.
(C ontinued on page 57)
20
T IIE
NORTHWESTERN
BANKER
November, 1926
Simplicity a Feature of the Warehouse
Receipt
H E g rea test difficulty confronting
ag ricu ltu ral relief lies in the fa c t
th a t the farm er, more th a n any
oth er individual, is trea ted as a compos
ite. E very one, w hether he is an advo
cate of a p a rtic u la r bran d of relief or
an opponent, has his own p icture of the
farm er. These pictures ru n through a
series of gradations, all the way from
th e one which presents the farm er as a
sh iftless individual who houses his hogs
in the kitchen to the one which presents
him as a pure a ltru ist, w orking only fo r
the betterm en t of m ankind and suffering
m artyrdom in the process. I f all these
pictures could be destroyed and a little
p ractical common sense applied to the
problem we would rapidly approach its
solution.
T
Farm Credit Misunderstood
I f the same kind of reasoning were a p
plied to any other branch of commerce
or indu stry , and an attem p t were made
to p resent a picture of a com posite re
tailer, or a com posite m anufacturer, the
whole com m unity would rise and declare
the attem p t preposterous. I t is no less
preposterous when applied to agricul
ture. I t is this so rt of thin g which leads
the publisher of an ag ric u ltu ral paper
in M issouri, and one who poses as a
leader in political farm relief, to re
pu d iate the effort accredited to Secre
ta ry H oover to place ag ric u ltu ral credit
upon a sound and elastic basis, w ith the
rath e r fatuous declaration th a t the farm er
cannot be aided by p u ttin g him fu rth e r
in to debt. The changes have been rung
to such an extent upon th is statem ent,
an d it has been m outhed by so m any
varieties of ignorance, th a t any rep etitio n
o f it from any source can only be produc
tive of fatigue. The m an who is unable
to distinguish betw een the creation and
developm ent of pro p er credit facilities
fo r the conduct of the ag ricu ltu ral busi
ness and “p u ttin g the farm er deeper into
debt,” has no claim w hatever to speak on
beh alf of the ag ricu ltu ral ind u stry or any
other. I t has the fu rth e r im plication,
which is nothing short of a libel, th a t all
farm ers are in such financial condition as
to be unw orthy of credit. There are ap
proxim ately 213,000 farm ers in Iowa.
The large m ajo rity of these men are sound
credit risks, and are vitally interested in
the av ailability of money fo r the conduct
of th e ir business a t reasonable rates and
fo r such periods as accom modate them
selves to the exigencies of th e ir p a rtic u la r
bran ch of the industry. I f anyone, pos
ing as a rep resen tativ e of any other in
d u stry undertook to say, upon its behalf,
th e things which are said in relatio n to
ag riculture, the pro tests would cover the
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
By J. G. Mitchell
length and b read th of the country and
reach to high heaven.
Congress has made a num ber of in te lli
gent and honest efforts to provide a credit
system which will be adap tab le to the
needs of agriculture. I t is not the presen t
purpose to discuss these system s, fo r it
is the w rite r’s conviction th a t, while the
adm inistratio n of these agencies has been
by no m eans perfect, it is essential th a t
consideration be given to sound and wellestablished financial practices by the in
dividual borrow ers and th a t, in so f a r as
practicable, they be adopted.
The te rm “fro z e n a s s e ts ” Avas in tr o
duced in to o u r v o c a b u la ry in th e y e a r
1920. The lessons it conveyed w ere a c
q u ire d by th e fa rm e rs Avith d ra s tic r a p id
ity .
T hey h av e been le a rn e d by th e
b a n k e r so m ew h at m o re sloAvdy b u t none
th e less su rely .
Mutual Adjustment Needed
The intelligent and constructive ob
server of our ag ric u ltu ral financial expe-
riences of the last six or se\7en years m ust
have reached the conclusion th a t to p re
vent rep etitio n of such d isasters, there
m ust be a m utual adjustm ent. In other
words, the system of credit m ust be a d a p t
able to ag ricu ltu re and the individual
borrow er m ust recognize certain financial
laws and practices. I t m ay as well be
conceded th a t, no m a tte r how well fitted
the system m ay be, the borrow er him self
may cause rates to be high and cred it to
be restric ted by his own attitu d e.
I f he neglects or refuses to fu rn ish re
liable inform ation as to his credit sta n d
ing, he imposes upon the lending agency
the expense eith er of investigation or
loss. I f he consistently overlooks the
date of the m a tu rity of his obligations he
necessarily adds to the expense of collec
tion. I f he insists upon a disp ro p o rtio n
ate ra tio of exem ptions he autom atically
increases the risk. All these expenses of
necessity reflect them selves in relativ ely
high in te rest rate s and restric ted credit.
I f, on the o th er hand, he is p rep ared to
fu rn ish sa tisfac to ry and reliable in fo rm a
tion as to his credit stan d in g ; if he a t
tends to his m a tu ritie s w ithout action on
the p a rt of the lender and, in a word, if
he is, to the best of his ability, p rep ared
to conform w ith accepted practice, he is
en titled to credit upon the same basis as
to cost and av ailab ility as are those en
gaged in other lines of business who obey
these laws.
W ith these considerations in view, the
Iow a leg islatu re provided by sta tu te fo r
the issuance of w arehouse receipts against
g rain stored upon the farm . The system
has been the subject of attac k by critics
who, as a general rule, have n ot only had
no experience in its operation, b u t have
not even taken th e trouble to exam ine the
law. The fav o rite declaration reg ard in g
it is th a t it is m erely an o th er form of
ch attel m ortgage. I t is no more “an o th er
form of ch attel m ortgage” th an it is a
w arehouse receip t issued by a term in al
elevator. Anyone who will tak e a chattel
m ortgage and a w arehouse receip t issued
ag ain st g rain on a farm , lay them side
by side, and detect any m aterial sim ilar
ity betw een them is a perspicacious gen
ius.
Not a “Chattel Mortgage”
J. G. M itchell, a u th o r of th e a rtic le on
th is page, on th e rig h t in th e above photo,
w ith th e late S enator A lb ert B. Cummins,
of Iow a, on th e le ft. This photo was
tak en in O ctober, 1925, in fro n t of the
W hite House, w here Mr. M itchell and
S enator Cummins had conferred w ith
P resid en t Coolidge re la tiv e to problem s of
ag ric u ltu ra l credit.
H ow ever, th e v ita l d istin ctio n betw een
a w arehouse receip t and a ch attel m o rt
gage exists in th e in te g rity and homo
geneity of th e security, which exist in the
one, and are absent in the other.
I f th ere is any more preposterous docu
m ent th a n th e o rd in ary ch attel m ortgage,
the presen t w riter has been unable to dis
cover it. I t is chiefly valuable as an ex(C ontinued on page 58)
THE
November, 1926
NORTHWESTERN
21
BANKER
I
C
A
L
I
B
E
R
!
H R O U G H 57 years of multiplied con
tacts with business and banking institu
tions reaching every known market, this Bank
has acquired in unusual degree that caliber and
breadth of vision which bank officials recognize
as desirable in their Chicago correspondent.
T
F r e d e r ic k H . R a w s o n
H a r r y A . W heeler
Chairman of the Board
President
C r a i g B. H a z l e w o o d
Vice-President
UNION TRUST
CO M PA N Y
C H ICA G O
Offering the Seven Essentials o f a Banking Home
SAFETY
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
* SPIRIT
* EXPERIENCE • CALIBER
•
CONVENIENCE
- COMPLETENESS
-
PRESTIGE
22
T IIE
NORTHWESTERN
BANKER
November, 1926
W hen Should a Check Be Presented
at a Bank?
F T E N T IM E S the holder of a check
will fa il to tak e it to a bank to
be honored u n til a fte r m any days
have elapsed. There is an old saying,
‘Time and tide w aits fo r no m an.’ The
question now comes to us as to w hat
effect the elapse of tim e has caused,
provided a check is not honored when
presented a t the bank fo r paym ent.
Does the delay in the presentm ent of
the check discharge the draw er of the
check ?
O
An Actual Case
A p a rty by the nam e of Spring, p u r
chased lum ber and building m aterial
from a Lum ber Company, u nder con
trac t, fo r w hich he has agreed to pay the
sum of $3,125. V arious paym ents were
made on the account, and on J u ly 15,
1925, Spring executed and delivered to
the Lum ber Company his check fo r $600,
draw n on the S tate B ank. This check
was delivered to the m anager of the
Lum ber Com pany, who, on the same day,
tran sm itte d it by m ail to the general
office of the Lum ber Company, a t Savoy.
This check was not then presented to the
Savoy S tate B ank on which it was draw n
fo r paym ent. B ut it was a t once fo r
w arded by the Savoy Office of the Lum
ber Com pany to the F irs t N ational Bank
o f G rand Rapids. I t reached the G rand
R apids B ank on Ju ly 16th, on which date
the G rand R apids B ank m ailed it to the
Savoy S tate Bank.
The exact date the cheek reached the
Savoy S tate B ank is not known
The
Savoy S tate B ank closed its doors on
J u ly 19, 1925, and was taken over a t th a t
tim e by the sta te banking departm ent.
The $600 check was pro tested and re
tu rn ed by the S tate B ank E xam iner to
the G rand R apids N ational B ank. The
records of the S tate B ank show th a t at
the tim e the said check was draw n, and
a t all tim es th e re a fte r, S pring had on de
posit, in the Savoy S tate B ank, a sum
much in excess of the am ount called fo r
by said check. The G rand R apids Bank
retu rn ed the check to the Lum ber Com
pany a t Savoy.
A t the tim e the $600 check was de
livered, the Lum ber Com pany credited
S p rin g’s account w ith th a t am ount, but
said check was not charged back to
S p rin g when it was protested. On A u
g u st 1, 1925, S pring gave the Lum ber
Com pany a check fo r $500, and on A u
gust 6th, following, he gave ano th er check
fo r $500. The Lum ber Com pany dis
posed of these two checks by deducting
$600 therefrom , to take up the old check,
and crediting S pring’s account w ith the
rem aining $400. I t is out of this transac-
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
By the Legal Department
Questions of interest to bankers are
discussed in this department and any
subscriber has the privilege of writing
for information and advice on legal
subjects. If the inquiry can be defi
nitely answered without the prepara
tion of a brief, the answer will be
given by our attorney free of charge.
If, however, the inquiry involves ex
tensive research in a Law Library, and
the preparation of a complete brief,
The Northwestern Banker will so
notify the subscriber and upon his in
struction, we will ask our attorney to
prepare a brief of the case at a cost to
the subscriber of only $10. The prep
aration of a brief is entirely optional
with the subscriber. In writing for in
formation, kindly enclose a 2-cent
stamp for reply and address, “Legal
Department,” care The Northwestern
Banker, 555 Seventh St., Des Moines,
Iowa.
tion th a t the differences betw een these
parties arise resu ltin g in the m a tte r be
ing brought before th e co u rt fo r d eter
m ination. The balance of the account
was p aid in full.
Filed Mechanic’s Lien
The L um ber Company filed a me
chanic’s lien, and sta rte d foreclosure p ro
ceedings, alleging a balance due of
$586.35. S p rin g denies the indebtedness,
and alleges th a t he delivered to the Lum
ber Company, to apply on his account,
two checks fo r $500 each, and th a t fo r
said checks he received cred it on his ac
count fo r only $400.
T herefore, he
claims his account is p aid in fu ll and
asks th a t the foreclosure proceedings be
dism issed by court order. The Lum ber
Company contends th a t it had an oral
u n derstan d in g w ith S pring th a t these two
checks, am ounting to $1,000, were to be
applied exactly as it did apply them, to
wit, $600 to tak e u p the p rotected check
and $400 on account. I t fu rth e r con
tends th a t, even if there were no such
oral agreem ent, it had the right, u n d er
the law, to m ake ap p licatio n as it saw
fit, so long as it received no direction
w hatever from the d ebtor as to the ap
plication to be m ade of the paym ents.
B oth sides to this controversy argued
the question of w aiver and estoppel and
confession and avoidance.
W hen the fac ts are boiled down, it is
sim ply this, th a t the Lum ber Com pany
claim ed S pring to be owing them the
sum of approxim ately $600. S p rin g says
th a t he paid this am ount in the check
fo r $600 above referre d to. The burden
of proof is on the Lum ber Company, in
th is instance, to prove its claim unpaid,
and it is en titled to m eet any evidence of
S pring proving paym ent by any evidence
available which shows non-paym ent.
T herefore, when S p rin g tendered his evi
dence showing paym ent by these two
$500 checks, the b urden still rests on th e
Lum ber Company and it has the rig h t to
introduce any evidence which w ill sus
ta in th e burden of proving the account
unpaid. The L um ber Company had the
rig h t to show th a t even though certain
money was p aid by him, such paym ent
was not made to apply on the account in
controversy.
As to the testim ony reg ard in g an
agreem ent th a t the p ro tested $600 check
was to be p aid by deducting th a t am ount
from the two checks m aking the $1,000
paym ent, th e evidence is in hopeless con
flict. The opinion of the court is th a t
the Lum ber Company has not sustained
the burden of said agreem ent, and th e re
fo re m ust fa il on the claim ed agreem ent.
I t is the claim of S p rin g th a t the b al
ance of said account has in fa c t been
paid by the check fo r $600 above re
fe rre d to. H e bottom s this contention
on the proposition th a t, having issued
the cheek on the 15th day of Ju ly , 1925,
on the Savoy S tate B ank, the p rin cip al
place of business o f the Lum ber Com
pany, if the L um ber Com pany had p re
sented said check fo r paym ent a t the
Savoy S tate B ank w ith in a reasonable
tim e a f te r receip t of same, it would have
been p aid in fu ll; b u t the bank on which
the check was draw n was closed and the
check dishonored through the negligence
of the Lum ber Company, and the loss
caused thereby is th erefo re on the Lum
b er Company.
In o th er words, if the check had been
presented to the Savoy B ank the day it
was received, or the day th e re a fte r, the
evidence shows it would have been paid
in full. In stea d of so p resen tin g it, th e
Lum ber Com pany forw ard ed the check
to the G rand R apids N ational B ank, some
200 miles d istan t, and, so f a r as th e rec
ord shows, it was n ot in fa c t presented
to the Savoy B ank u n til a f te r it closed
its doors.
What the Law Says
A section of the N egotiable In stru m en t
Law adopted by m any of the states, p ro
vides t h a t : “A check m ust be presented
fo r paym ent w ithin a reasonable tim e
a f te r its issue, or the draw er w ill be dis
charged from liab ility thereon to th e ex
te n t of th e loss caused by th e delay.”
The question th e re fo re is, W h a t is a
reasonable tim e fo r the p resen tatio n of a
(C ontinued on page 66)
Novem ber, 1926
Hum an Incident Travel Reel—
“The
H and o f a Great Service”
No. i.
A line of French porters at the arrival of the
steamer train. The “ Ha n d ” in waiting.
No. 2.
The most welcome sight to travelers arriving in
a foreign city is an American Express courier with
his courteous greeting of service.
No. 3 .
Endless details regarding baggage are turned over to
him. His “Service Hand” is the surest of all checks.
A never ending source of information—intelligent, experienced, accurate. His service and advice
inspire instant confidence. He is the Service.
No. 4
and
No. 5.
No. 6.
W herever and whenever assistance is needed
the traveler abroad will always find the “ help
ful hand of a great service” Endless in its
v a rie ty , c o n s ta n t a n d e ffic ie n t, it is th e
A m erican Express C om pany’s personal ex
pression of its sincere desire to serve.
Banks everywhere assure this Service to their
traveling patrons to the fullest extent w hen
they sell them
m e r ic a n
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
(3 )
Making doubly sure that the details of the service
for which he is responsible are carried out. One
of the many factors which have made the “hand”
of his Service great.
These close-ups are photographs of actual
in c id en ts—-six from six th o u sa n d similar
scenes happening every day at the great ports
of the w orld and the railway stations ot
foreign cities.
A
a>
E x pr e ss T
r a v e l er s
C heques
(4)
THE
24
NORTHWESTERN
BANKER
November, 1926
W h y Organised Labor M ust Make Some
Concessions to the Farmer
H E stran g e hold th a t organized la
bor now exercises over the economic
life of Am erica, is one o f the re a
sons fo r the present depressed agricul
tu ral situation, E. D. Chassell, re tirin g
se creta ry -trea su rer of the M ortgage
B ankers A ssociation of Am erica, told
delegates to the A ssociation’s annual con
vention la st m onth in Richmond, V ir
ginia. He called upon the A ssociation
delegates to rally the farm ers to support
a plan fo r enlarging the quota of imm i
g ra n ts allowed in this country each year,
saying this, w ith a norm al increase in
T
T H E
B A N K E R S ’
population, will give the farm er a broader
m arket fo r his perplexing surplus.
Mr. Chassell said, in p a r t: “ The year
has been quite sa tisfac to ry in a business
way. F arm ers as a class are reducing
th e ir indebtedness and recovering from
the a f te r effects of the w ar boom. In
spite of the fa c t th a t he is a t economic
disadvantages com pared w ith those en
gaged in in d u stry , commerce and tra n s
p ortation , the farm er is im proving his
financial condition by strin g e n t econo
mics and h ard work. H e is paying w hat
he owes by going w ithout m any things
S E R V I C E
S T A T I O N
W hat
"dfypublic”Correspondents
Say oAbout "d^epublic” Service
There is a well known adage that "One eye-witness is worth
a thousand hearsays.” W ith this in mind we are printing a few
extracts from letters recently sent us by our Correspondent
Banks regarding "'Republic” service.
ci----------------------------------------------------------------------------------------------------- ¡3
"Valuable
Ideas99
"Cxcellent
Service99
“I can say without the
slightest hesitancy that
you have given me some
very valuable ideas. I will
em ploy every one o f
your suggestions.”
“We have your special
commercial report on
the company we recently
inquired about. This is a
new service to us and an
excellent one. W e ap
preciate it very much.”
"Letter Was a
Knockout”
^Appreciate
Collection Service”
'"/ n a
by
“ The advertising letter
that you prepared for us
was indeed a‘knockout.’
It pleased a very great
many people and we had
a number o f co m p li
ments on it.”
Itse
“That advertising book
let you sent us is in a
class by itself. There is
nothing like it. It is the
finest thing o f the kind
we have ever seen.”
“ W e surely appreciate
the way you handled the
recent collection item
we sent you. Our cus
tomer is greatly pleased
as he had about given up
hopes o f ever getting
his money.”
b eyo n d the Usual
" R e p u b lic ” Service IS beyond the usual because it embraces scores or
special services originated by this bank for the express purpose of help
ing its correspondents. Why not let us describe them to you in detail?
The National Bank o f the 0 k
R
E
* •
P
O P
U
B
E
C H IC A G O
l C
• *
eAssets $100,000,000.00
J o h n A . L y n c h , C hairm an o f the B oard
D a v id R . F o r g a n , Vice-C hairm an
G e o r g e W o o d r u f f , Vice-C hairm an
H. E . O t t e , P resident
© N . B. R. 1926
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
fi)
which he would like to buy. H e has g re a t
recu p erativ e pow ers and w ill soon be on
his feet. In m any states and localities,
he is already back to a p rew ar basis.
V ery few farm s are changing hands.
F o r this reason the volume of farm m o rt
gage business has not been large.
Views on Decline of Stock
“ Since our convention in Septem ber,
1925, the stock of several jo in t stock land
banks which was then quoted around 175
and 180 or more has dropped to less than
h alf its fo rm er v aluation and the quota
tions published have been as low as 80
bid and several have passed two divi
dends. M any jo in t stock land banks are
well m anaged and have been profitable,
b ut n early one-third of those organized
have gone out of business. Now th a t the
blunders of m anagem ent of the earlier
years of the F ed eral and J o in t Stock
land banks are becoming known, th ey are
likely to be avoided in the fu tu re . The
m ortgage b an k er is in terested in th is be
cause in th e fu tu re they are likely to be
fa ire r com petitors th a n in the p ast.
“ City m ortgage business has been
phenom inally good d uring th e p a st y ear.
The ra p id grow th o f u rb an population
and the unusual p ro sp erity of in d u stry
and commerce have developed cities and
tow ns to such a degree th a t the volume of
m ortgage business in cities has g reatly
exceeded th a t of th e farm s. P re se n t in
dications are th a t it will continue w ith
only a slig h t reduction in volume during
the coming year. As in m an u factu rin g
it is necessary to g u ard ag ain st over
production in this line.
Rural Population Decreases
“ The population of the U nited S tates
increased 39 p er cent betw een 1900 and
1920. T aking into consideration influenc
ing fac to rs th a t did n o t re stric t the
grow th d u rin g th e first two decades of
the century, a reasonable estim ate places
the population a t 200,000,000 before 1905,
provided the cu rren t o f im m igration is
not cut off.
“As the population increases, the p er
centage of ru ra l population decreases.
T w enty-four years hence, when th e m id
cen tu ry m ark is passed, it is dou b tfu l if
the ru ra l population w ill have reached
65,000,000, being then outnum bered two
to one by the resid en ts of tow ns and
cities.
“ There w ill be no more land in the
U nited S tates in 1905 th a n a t the present
time. W h eth er th ere w ill be more land
u n d er cultivation depends on several fa c
tors. The n a tu ra l tendency w ill be to in
crease th e acreage cultivated w ith th e in
crease in population. Low cost of tran s-
November, 1926
THE
NORTHWESTERN
25
BANKER
p o rtatio n fo r food stuffs raised abroad
and an open m ark et fo r fa rm products
raised by cheap labor in foreign lands
would go a long w ay to prevent the f u r
th er developm ent of A m erican farm
lands.
“Be this as it may, 65,000,000 people
added to our city population com pared
w ith a probable 25,000,000 added to our
farm in g population w ill require corres
pondingly m ore places of residence and
more edifices fo r business. There w ill be
more ap a rtm en t houses, more single
dw ellings, m ore office buildings, more
factories, more dep artm en t stores and
more hotels.
Money Goes Where Sought
“Money goes w here it is sought. The
financing of the fu tu re will be in the
cities in proportion to th e ir increase in
population. The tide runs th a t way now
and it will continue to so run, although it
will ebb and flow a t irre g u la r intervals
w hen influenced by economic conditions.
“I t is conceded w ithout argum ent th a t
in the enactm ent of w elfare and protec
tive legislation, the in d u stria l leg of our
business has been favored f a r more than
the ag ricu ltu ral leg.
“ O rganized labor has dictated legisla
tion fo r its own benefit w ithout regard
to the effect of agriculture.
“D uring the W orld W ar, laws were en
acted to perm it organized labor to p ra c ti
cally dictate its own wages. W hen the
cost of living was a t the peak, it required
$2.47 to purchase w hat one dollar would
have purchased in 1913, of an average of
200 rep resen tativ e commodities. Confin
ing the purchasing pow er to commodities
used fo r food, shelter, clothing, light and
fuel, the cost of living in Ju ly , 1920, was
$2.04i/2 as com pared w ith purchasing
pow er of $1.00 in 1914 according to the
com putations of the N ational In d u stria l
Conference Board.
Farmer Pays Far Higher Wages
“In Ja n u a ry , 1926, the cost of living
had dropped a little more th a n th irty
points to 174.1 as com pared w ith the
peak point in 1920, b u t railro a d opera
tives still receive w ithin 5 p er cent of
the highest wages paid when cost of liv
ing was highest. The reduction in cost
of living makes th e ir real wages, m eas
u red by living costs the highest now in
history.
“ The farm er pays high fre ig h t to keep
the wages high. H is surplus g rain which
goes to E urope nets him a low er price on
his farm because of the higher freig h ts
to the seaboard. O rganized labor can dic
ta te. The farm er can not.
“I t is argued th a t we m ust have a p ro
tective tariff, to build up a home m arket
to increase the wages of the A m erican
w orkm an in order th a t lie m ay be a b et
te r custom er fo r A m erican m eat and
w heat and cotton wdiich the fa rm e r raises.
To a ce rtain extent th a t w orks out all
right. The wages of A m erican workm en
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
C. G. H A N E M A N N
R e s i d e n t M anage r
D e s M o in e s Office
D. F. S T O C K H A M
D e s M o in e s
/. M. H E R M A N
D e s M o in e s
H E SE are th e m en w ho are v ita lly in te r
ested in se llin g Iow a B an kers in and around
D es M oines th e p ro p er ty p e of in vestm en ts
fo r th e ir b an k and th e ir cu stom ers— so th a t th e
p erp etu a tio n of T h e W h ite -P h illip s C om p any—
as w ell as th e q u a lity o f secu rity b eh in d each and
every b o n d m ay b e m a in ta in ed in th e fu tu re as
it has b een in th e past. T h e Des M oines office
T
is always at yo u r service.
\ \ T x it b
P
m
l u
u
>s
IX Y E ST M E N T
------ ° B A N K E R S °~
c,o.
DUBUQUE, IOWA
DAVENPORT, IOWA
OMAHA, NEBRASKA
B. & I. B uilding
First N a t’l Bank Bldg.
Bankers Reserve Life Bldg.
DES MOINES, IOWA
CHICAGO, ILLINOIS
219 Securities Bldg.
137 S. La Salle St.
THE
NORTHWESTERN
BANKER
November, 1926
are increased, b ut when men are invited
to this country to w ork in A m erican fa c
tories and to brin g th e ir fam ilies w ith
them to consume th e fa rm ers’ surplus
products in the enlarged home m arket,
they are held back by the co n tract labor
law enacted to benefit organized labor,
not to help the farm er.
Organized Labor Rules
“There is a provision in the law th a t
co n tract labor m ay be im ported when
needed. T hat section of the law is p rac
tically a dead letter, because organized
labor rules th a t more w orkm en are never
needed on com petitive jobs. The b rick
layer and the p la ste re r who get $16 a
day fo r reg u lar tim e and ex tra p ay fo r
overtim e and holidays, always insist th a t
th ere is no room fo r more men in th eir
tracfes. I t is the same w ith carpenters
and sheet m etal w orkers and also w ith
fa rm laborers who now get twice the
wages th a t they did tw enty years ago.
The fa rm e r pays and his m ark et does
not correspondingly expand.
“ The fa rm e r has discovered by actual
experience th a t the b rick lay er draw ing
$16 a day fo r week days and ex tra pay
fo r S atu rd ay aftern o o n s and Sundays
does n ot eat any more b read th an he did
when he received $7 a day. H e does not
eat so much m eat. The consum ption of
m eat in the U nited S tates has fallen off
151^ pounds p er ca p ita in the la st eight
een years, 1907 to 1925. The fam ily of
th e $16 a day m an do n o t w ear as much
of the fa rm e r’s cotton as they did when
the wages w ere $7 a day. The city resi
dent now pays much higher re n t as a
trib u te to the wage earners in th e build
ing trades.
Spend More for Luxuries
“W hile the wage earn ers and his fam
ily consume no more b read and ea t less
m eat and w ear less cotton as custom ers
of the farm er, they spend more money
fo r im ported silks and m an u factu red
ray o n and gasoline and th e a te r tickets
th a n form erly, b ut these do not help the
farm er m ark et his surplus.
“L eaders in both political p arties are
likely to continue ru n n in g in circles, be
cause they do not dare ru n the risk of
th e sh a rp knives of organized labor. O r
ganized labor w ants everything and will
concede noth in g to the farm er.
“I f the fa rm e r is to get his f a ir share
of A m erican pro sp erity , he m ust rally
his frien d s to in sist on giving him his
ju st due.
Farmer Must Fight for Rights
“ O rganized labor should be w illing to
reciprocate the favors it has received
from unorganized ag ricu ltu re. I f it will
not do so, let th e farm er fight fo r equal
rig h ts w ith an iron fist.
“ The farm er can secure th e su p p o rt of
organized labor fo r an enlargem ent of
th e im m igration quota if he m akes th a t
the price fo r fa rm su p p o rt of th e pro
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
November, 1926
T PI E
tective tariff; which labor desires to have
retained.
“A free country in which the people
rule m ust be governed on a live-and-letlive basis. W ith the exception of the
're d s’ and the 'p in k s’ the m ajo rity of the
A m erican people believe th a t the sta n d
ard of living in the U nited S tates should
be m aintained fo r all citizens higher than
in any other country on earth. The u n
equal d istrib u tio n of the benefits of the
protective ta riff and of the im m igration
law are creating g rea t unrest. O rganized
labor can not afford to provoke the A m er
ican public too f a r lest the reaction and
retrib u tio n be disastrous.
MY FIRST BANK JOB AT A DOLLAR
A DAY
(C ontinued from page 16)
p a rtn e rs and S enator L arrabee, Col. R.
A. R ichardson and L. S u tte r of P ay ette
county as special p artn e rs, each of us
co ntributing $5,000 of the capital.
"M r. L arrabee favored erecting a good
building, show ing the people th a t we
were perm anently located, and in the fall
of 1879 I let the contract fo r a tw o-story
brick building, 70 feet long, the first brick
building in the county. The railro a d was
built into Rock R apids the same fall, and
the com pany offered to haul the m aterial
fo r us, provided we would erect a brick
building. The m aterial was purchased a t
M ankato, M innesota, the building wTas
enclosed in the fall, the in te rio r work
was finished during the w in ter and we
moved into the building in A pril, 1880.
“A fte r a visit from the eastern p a r t
ners, Col. R ichardson expressed a lack
of confidence in the business, because of
the newness of the country and requested
Mr. L arrabee to purchase his interest.
Follow ing a consultation w ith me he p u r
chased Mr. R ichardson’s in terest, w ith
the un d erstan d in g th a t I could have h alf
of it by paying a liberal in te rest u n til I
could pay fo r it.
"O ur first p artn e rsh ip was fo r a threey ear period, and a t the end of th a t tim e
Mr. Thompson, M r. L arrabee and m yself
purchased M r. S u tte r’s in te rest and ex
tended our p artn e rsh ip fo r a five-year pe
riod, increasing our ca p ital to $50,000
o ut of the earnings of the bank fo r the
th ree-year period. A t the end of the sec
ond period, which was the eighth year,
we again extended our p a rtn e rsh ip agree
m ent fo r another five-year period, in
creasing our capital to $100,000. In De
cember, 1892, M r. Thompson and I p u r
chased M r. L arrab ee’s in te rest and con
tinued business un d er the firm nam e of
M iller & Thompson u n til Ja n u a ry , 1904.
Mr. Thompson having died, we concluded
to nationalize under the corporate nam e
of Lyon County N ational B ank.
Many Changes Since 1875
“ There have been a g rea t m any changes
in the banking business since 1875. A t
th a t tim e such things as adding machines,
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
NORTHWESTERN
27
BANKER
typew riters, or even ru b b er stam ps were
not in use and all w ork was done by hand.
People expected to pay 25 cents a h u n
dred fo r exchange. B ankers were not ly
ing aw ake nights th in k in g of some way
th a t they could do som ething fo r nothing
and even then profits were very meager.
W hen I moved to Rock R apids there
were not to exceed a couple of hundred
of people in th e tow n and not more th an
1,500 in the county, not a person living
in one congressional tow nship, and there
was very little banking business.
"O ur business consisted m ostly of look
ing a f te r lands fo r nonresidents, tak in g
contracts fo r breaking, p u ttin g up build
ings, paying taxes fo r nonresidents, in
fact, there was more business outside the
bank th an inside. My first cashier, Chas.
A. Sm ith, now w ith the B ank of Ita ly in
C alifornia, and p a st p resid en t of the
C alifornia B ankers A ssociation, tells the
story on me th a t the first lesson I gave
him in banking was to go into the h a r
vest field and set up a McCormick reaper.
"F o r six or eight m onths a fte r opening
the bank in Rock R apids I did all the
work, including th e ja n ito r work. I t
was understood th a t Mr. Thompson would
come into the bank as soon as th ere was
business enough f o r him. A fte r the first
year, Mr. Thompson looked a fte r the o u t
side work, including the land business,
while I confined my w ork to the banking
end of the business. I t was agreed th a t
fo r th e first th ree years I was to have
$100 a m onth and M r. Thompson the
same.
" In early days every one was asked to
give security and practically the only se
cu rity th a t our custom ers had in those
days was ch attel m ortgage secu rity on
stock, crops, etc., and our losses were
alm ost n il.”
Royal Union L ife
In s u r a n c e C o m p a n y
DES MOINES, IOWA
O ffers an unexcelled
line of policy con
tracts.
Our Juvenile poli
cies, w ritten on chil
dren as y ou n g as one
day old, go in full
benefit autom atically
at age five w ith ou t
re-exam ination.
Our special lo w rate
policies to b u sin ess
and professional m en
are fast sellers.
W e w rite w om en on
equal
basis
w ith
men.
K oyal U nion L ife B uild ing, Cor. 7th and Grand A venue
D es M oines, Iow a
Special agency open
ings are now avail
able. W rite W illiam
K och, V ice P resident
and Field M anager.
Royal. Union Life Insurance Company
Des M oines, Iowa
A. C. TUCKER, President
28
THE
/
.............
NORTHWESTERN
oo o
BANKER
S
’Round The World And Back
To You—Pleased Customers!
A B A ¿EEL Cheques
“TRAVEL M O N E Y ”
— Sell you r custom ers A B A T ravelers’ Cheques
to ta k e along on trip s, w eek -en d or ’round th e
w o r ld —
— A nd on th e ir retu rn yo u w ill h ave custom ers
all th e more pleased b y you r service and fu ll of
respect for your good ju d gm en t.
W r ite us for litera tu re, inform ation
and sug
gestions on h o w you r b a n k can benefit, b oth in
goo d -w ill and
M oney.”
profits, b y th e sale o f “ T ravel
T h e A g e n t fo r th e M e m b e r B a n k s fo r th e p a y m e n t o f a ll A m e r ic a n
B A N K E R S A s s o c ia tio n T r a v e le r s ’ C h eq u e s is
B ankers T r u st C ompany
V
N E W YO R K
PA R IS
LONDON
.......
¡0 0 < *
■------------------- V
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
November, 1926
Opposed to Branch Banking
A m erican ag ricu ltu re has voiced its
opposition to b ranch banking, especially
the type th a t would be p erm itted u nder
th e M cFadden B anking Bill w ithout the
H ull A m endm ents, and has in stru cted
the legislative d ep artm en t of its pow er
fu l n atio n al organization, the A m erican
F arm B ureau F ed eratio n , to use every
effort fo r the d efeat of th is bill w ithout
these am endm ents.
Official action to this effect was taken
a t the sixth an n u al n atio n al convention
of th e fed eratio n , held in Chicago, when
the follow ing resolution, headed “B ranch
B anking,” was adopted :
“ T hat we are opposed to branch bank
ing, as provided fo r in the M cFadden
bill, and hereby instruct our legislative
dep artm en t to use its best efforts to de
fe a t th e bill.”
D uring the la st session of Congress the
legislative d ep artm en t of the A. F . B. F.
was governed by this resolution and gave
its sup p o rt to opposition to the M cFad
den bill when needed.
B ranch b anking in any form has al
ways been d istaste fu l to th e farm ers of
this country, and especially to those in
the m iddle w estern states in which it is
now p rohibited by sta te law, which con
stitu te a t least nineteen of the p rincipal
ag ricu ltu ral states of the nation.
S. H . Thompson of Quincy, 111., is p res
ident of the A m erican F a rm B ureau F e d
eration, w ith h ead q u arters in Chicago.
Mr. Thompson is also a banker, being
president of the B roadw ay B ank of
Quincy.
Hold Annual Meeting
The D allas County Savings B ank of
M inburn, Iowa, held its annual m eeting
last m onth and the follow ing officers
were reelected: President, D. J . Storm ;
vice p resid en t and cashier, N. P. B lack;
assista n t cashier, M. S. Luellen. The d i
rectors w ere: D. J. Storm, W . H . Royer,
R. W . H arrison, Geo. M. Huffman, N. P.
Black and E. J. Rowe.
The bank rep o rts a very successful
year, paid their regular dividend of 8 p er
cent to the stockholders, the balance of
profits being left as undivided profits.
The D allas County Savings B ank was
organized tw elve years ago by N. P.
Black, th e p resen t vice p resid en t and
cashier w ith a capital of $15,000.00. Their
surplus and undivided profits now total
over $47,000.00 and the deposits are about
$350,000.00.
I t goes much ag ain st my stom ach. H a st
any philosophy in thee, shepherd?—
Shakespeare.
N ext to the o rig in ato r of a good sen
tence is the first quoter of it.— Em erson.
M easures, not men, have alw ays been
my m ark.— Goldsmith.
THE
November, 1926
Ord State Reorganized
R eorganization of the Ord S tate B ank,
Ord, Neb., has been approved by the dis
tric t court of V alley county, w ith the
aid of sta te banking auth o rities, w ith
J . C. Meese, continuing as p resid e n t;
Jo h n J. Allen, cash ier; F . J . S tara, vice
p resident, and o th er stockholders includ
NORTHWESTERN
ing George H. Lange, A. H . Jackm an,
Joseph M. Kokos, A. J . A uble and B. R.
H ackel. The bank will have a capital
of $40,000, and deposits of about $400,000. The loss to the sta te g u aran ty
fu n d involved in the reorganization, was
$78,000.
New Officers and Governors of Investment Bankers Ass’n
P R E S ID E N T
P lin y Jew ell
Coffin & B urr, Inc.
Boston
V IC E P R E S ID E N T S
Joel E. F erris
A rth u r H. G ilbert
H enry R. H ayes
R obert H. M oulton
B. A. Tom pkins
F e rris & H ardgrove
Spencer T rask & Co.
Stone & W ebster, Inc.
R. H. M oulton & Company
B ankers T ru st Company
Spokane
Chicago
N ew Y ork
Los Angeles
New Y ork
E X E C U T IV E SEC R ETA R Y
A lden H. L ittle
105 South L a Salle S treet
Chicago
A S S IS T A N T SEC R ETA R Y
C layton G. S chray
105 South L a Salle S treet
Chicago
E D U C A T IO N A L DIRECTOR
Sam uel O. Rice
105 South L a Salle S treet
A rth u r G. D avis
105 South L a Salle S treet
Chicago
F IE L D SEC R ETA R Y
Chicago
T R E A SU R E R
F ra n k M. Gordon
F ir s t T ru st & Savings B ank
Chicago
G OVERNORS
R ay M orris
George W hitn ey
Joseph R. Swan
C larkson P o tte r
George B. Caldwell
Jerom e J. H an au er
W a lter S. B rew ster
W illiam J . W ard all
H enry C. O lcott
C arroll J. W addell
Charles D. D ickey
F ra n k D. Nicol
Sidney R. Small
R. A. W ilbur
K elton E. W hite
H enry T. F erriss
M ax O. W h itin g
Jo h n P. B aer
Simon J . Block
Jo h n E. Ja rd in e
C harles R. B lyth
B enjam in H. D ibblee
H ugh W. Grove
E d g ar F ried lan d er
J. H. Gundy
Sigm und S tern
W illis K. C lark
C harles T. Sidlo
John D ane
J . L. Seybold
R obert R. Gordon
George V. R otan
B row n B rothers & Co.
J. P. M organ & Co.
G u aran ty Company of New Y ork
H ayden, Stone & Co.
100 B roadw ay
K uhn, Loeb & Co.
Russell, B rew ster & Co.
B en b rig h t & Co.
C ontinental & Commercial T ru st &
Savings B ank
D rexel & Co.
Brow n B ro th ers & Co.
Nicol, F ord & Co., Inc.
H arris, Sm all & Co.
The H errick Company
G. H. W alker & Co.
F irs t N atio n al Company
H arris, Forbes & Company, Inc.
John P. B aer & Company
Nelson, Cook & Co.
Wm. R. S ta a ts Co., Inc.
B lyth, W itte r & Co.
E. H. R ollins & Sons
F irs t W isconsin Company
E d g ar F ried lan d er
Wood, G undy & Co., L td.
S tern B ro th ers & Company
Geo. H. B urr, Conrad & Broom, Inc.
Sidlo, Simons, D ay & Co.
M arine B ank & T ru st Company
W ells-D ickey & Co.
Gordon & Company
N euhaus & Co.
N ew Y ork
N ew Y ork
N ew Y ork
N ew Y ork
New Y ork
New Y ork
Chicago
Chicago
Chicago
P hilad elp h ia
P h ilad elp h ia
D etro it
D etroit
Cleveland
St. Louis
St. Louis
Boston
B altim ore
B altim ore
Los Angeles
San Francisco
San Francisco
M ilw aukee
C incinnati
Toronto
K ansas City
P o rtla n d
D enver
N ew O rleans
M inneapolis
P ittsb u rg h
H ouston
DIRECTO R OF P U B L IC IT Y
H a rry R ascovar
11 Stone S treet
111 W est M onroe S tre e t
W oodw ard B uilding
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
69 W est W ashington S tre e t
These issues possess in
varying degree the invest
ment qualities of safety,
income, marketability, tax
exemption, etc.—just as
individual and institutional
investors possess in varying
degree the need for them.
Unless you hold those
issues which best fit your
needs, you are wasting in
vestment capital—just as
a contractor would waste
it if he used walnut for
rafters, for bond prices
like the prices of building
materials are affected by
the degree to which they
possess various qualities.
Hundreds of investors
find First Illinois Com
pany investment analysis
and advice of marked as
sistance in preventing a
waste of investment capi
tal. Perhaps you also would
find it equally profitable.
First Illinois Company
BONDS FO R INVESTM ENT
Chicago
M IL W A U K E E
ST. L O U IS
AURORA
D A V E N PO R T
W ashington
O FF IC IA L R EPO RTER
F red erick H. G u rtler
'T 'H E R E are several hun
dred different bond is
sues which bankers con
sider good investments.
CHICAGO
COM M ITTEE CO UN SEL
P aul V. K eyser
Are You
Wasting Invest
ment Capital?
N ew Y ork
O FFIC E CO UNSEL
Theodore S. Chapman
29
BANKER
Chicago
U nio n S avings B an k B ldg.
30
THE
NORTHWESTERN
BANKER
November, 1926
Personal Paragraphs
Walter W. Head and Wm. B. Hughes
were splendid hosts to the “F allto n ic”
Special stopover in Omaha, supplying
cars fo r a to u r of the city, w ith Mr.
H ughes m aster of ceremonies.
— $—
Lawrence E. Shaughnessy has become
A. S p e c ia lize d
S e rv ic e
for Banks and B ankers
which is the result of more
than sixty years of experi
ence is offered by
THE FIRST
NATIONAL
B A N K OF
CHICAGO
and
THE FIRST
T R U ST and
SAVINGS
BANK
Complete facilities are p ro
vided for active and inac
tive accounts, collections,
bills of lading, investm ents
and foreign e x c h a n g e
transactions
F R A N K O. W E T M O R E , C h airm a n
M E L V IN A. T R A Y LO R , P r e s id e n t
associated w ith the S tanley Gates & Co.
investm ent securities, St. P aul. H e has
been rep resen tativ e of M innapolis fo r
P rudden Co., of Toledo, the p ast three
years.
Hamilton M. Peyton retire d last m onth
as chairm an of the board of directors of
the A m erican Exchange N ational Bank
of D uluth, which he organized in 1879.
H e was succeeded by Edward C. Congdon.
—$—
Archibald F. Maxwell is an o th er n ative
of Iow a to receive a New Y ork ap p o in t
ment. H e has been appointed a vice
president of the G u aran ty T ru st Co. Mr.
M axwell was g rad u a ted from Cornell
College and first entered th e banking field
as cred it m anager of the Mellon N ational
Bank in P ittsb u rg h . In 1913 he became
m anager of the credit d ep artm en t of the
N ational B ank o f Commerce and was
made assista n t cashier in 1915. H e la te r
became second vice p resident. W ith the
organization of the C entral “N ational
Bank of New Y ork in Ja n u a ry of this
year Mr. M axwell became its first p resi
dent, which position he as resigned to go
w ith the G uaran ty T ru st Co.
— $—
The Drake-Jones Co., of M inneapolis,
has established a branch office a t Sioux
F alls, in charge of Jam es S. G raham , who
has been in charge of country bank sales
fo r the com pany in southw estern M inne
sota.
— $—
R. E. Patty, head of the dep artm en t of
ag ricu ltu ral engineering of South D akota
S tate College, announces th a t about a
h alf m illion acres of land in South D a
kota has been cleared w ith governm ent
ag ric u ltu ral explosive, which explosive,
pyrotol, is still available to the farm ers
of South D akota. A n o th er carload is
now on order fo r delivery in early spring
to be used as soon as the ground is b reak
able.
— $—
Lester Bigelow has been elected vice
Combined Resources
Exceed $400,000,000
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
president of the M inneapolis T ru st Co.
Mr. Bigelow entered the com pany in May,
1920, as a member of th e bond d e p a rt
ment. In Ju n e, 1922, he was m ade sales
m anager of th a t departm ent, which posi
tion he occupied un til his recent prom o
tion. In his new association M r. Bige
low w ill assist R. W . W ebb, p resid en t of
the company. H enry E. Atwood succeeds
him as bond officer of the company.
— $—
Clarence Dillon, head of the Dillon,
Read Co., w ith E. J. Berm ingham , head
of the Chicago office of th a t com pany,
h unted p ra irie chickens a t Eden, South
D akota, recently and secured th e ir quota,
to g eth er w ith m any ducks.
—$—
George W. Norris, governor o f the
P hiladelphia F ed eral Reserve B ank, told
the Congress of A m erican In d u stry in
session a t P h ilad elp h ia recently th a t the
developm ent of a banking system th a t
would m ake bank failu res v irtu a lly im
possible is the goal to which A m erican
bankers should devote th e ir efforts. Mr.
N orris fav o rs b ranch banks w ithin a city
fo r the la rg e r banks to fa c ilita te the
tran sactio n of business, b u t did not sug
gest the establishm ent of branches by any
bank outside of its own city.
— $—
Wm. L. McKee has resigned as vice
president and directo r of the N ational
C ity Co. of New York.
— $—
LeRoy W. Campbell has beeen elected
a d irecto r of the U. S. F id elity & G uar
an ty Co. of New York. H e is also p resi
dent of the City B ank & T ru st Co. of
H a rtfo rd .
— $—
Philip G. Gossler has been elected a
director of the G uaran ty T ru st Co. of
New Y ork to succeed Thos. E. Wilson,
who recen tly resigned. Mr. G ossler is
president and chairm an of th e board of
the Columbia Gas & E lectric Co.
— $—■
Frank H. Lobdell has been elected
presid en t of the St. A nthony Commercial
Club of M inneapolis. Mr. Lobdell is
p resid en t of the E a st H ennepin S tate
Bank.
— $—
F. L. Maytag of N ew ton, Iow a, ch air
man of the board of directors of the
M aytag Company, is possessor o f th e
w orld’s larg est medallion, the g if t of th e
Home A ppliance M erchants of A m erica,
as a token of recognition o f his position
as m a n u fa ctu re r and m erchandiser of
electrical home appliances. The m edal
lion is valued a t $50,000.
— $—
O. B. McClintock, p resid en t of the O.
B. M cClintock Company, o f M inneapolis,
was elected p resid en t of th e M a n u fa ctu r
ers’ A ssociation of M inneapolis a t a re
cent m eeting of the A ssociation’s board
of directors.
November, 1926
THE
Frederick A. Yard has joined the in
vestm ent banking house of M errill, Lynch
& Company. Mr. Y ard was form erly
vice presid en t of the U nion T ru st Com
pany, Chicago.
Wm. J. Watson, a m ember of the di
rec to ra te s of the F ir s t N ational, Second
S ecu rity B ank and S ecurity B ank of Chi
cago, recently died a t the age of eightythree.
—$—
Frank O. Wetmore, accom panied by
M rs. W etm ore, will sail from New Y ork
soon on a w orld to u r of several m onths.
M r. W etm ore is chairm an of the F irs t
N ational B ank of Chicago.
NORTHWESTERN
BANKER
Radio Reform
Legislation fo r radio control may go a
long way in the direction of im proving the
situation, but w hatever action congress
may take, it will probably not be regarded
as going f a r enough.
By the time the owner of a radio receiv
ing set has heard “ W hat Can I Say, Dear,
A fte r I Say I ’m S o rry ?” from New O r
leans, D etroit, Cincinnati, Indianapolis,
New York, Chattanooga, D avenport and
as a p a rt of his favorite hookup, he real
izes th a t w hat he believes to be the worst
offense against radio saitsfaction can
hardly be prevented by law.
Something ought to be done, in the in
31
terest of peace of mind, harmony, good
will and all th a t sort of thing, to keep a
dozen stations from broadcasting the
same p opular song a t the same time.
A nother reform of which radio p atrons
feel the need is more frequent announce
ment o f the station.
The man who boasts about the num ber
of stations he has logged, dislikes sitting
in fro n t of his instrum ent fo r fifteen m in
utes, w aiting fo r the station to identify it
self.— Indianapolis News.
Age is a ty ra n t who fo rb id s a t the
p en alty of life all th e pleasures of youth.
— LaR ochefoucauld.
— $—
E. N. Baty, secretary of the Com mittee
o f One H undred, which led the n atio n
wide fight to have the A. B. A. reendorse
the H ull A m endm ents to the M cFadden
B anking bill, has issued the follow ing
from Chicago h ea d q u arte rs: “W e con
g ra tu la te the opposition on th e ir victory
in preventing the A. B. A. from endors
ing the H ull A m endm ents. They have
won the opening skirm ish. W e propose
to win the real battle, which will be
waged during the sh o rt session of Con
gress.”
—$—
George S. Silzer, president of the new
In te rsta te T rust Com pany of New York,
which opened recently a t 59 L iberty
S treet, is very optim istic over the re
ception and prospects fo r the success of
the new company.
THE
FOREMAN
BANKS
F O U N D E D
Walker D. Hanna, head of the W alker
D. H anna & Company, B urlington, Iowa,
investm ent house, retu rn ed last m onth
from Quebec, C anada, w here he atten d ed
the annual convention of the Investm ent
B ankers A ssociation. H e reports a pleas
a n t and profitable tim e, his itin e ra ry cov
ering three thousand miles, six hundred
of them by boat.
W hatever banking service
you need, w e are equipped
to serve you. W e especially
invite the business of banks
seeking a metropolitan con
nection.
Now Heads Own Business
Lloyd L. Coon, who fo r the p ast two
years has been employed by the F orem an
Banks of Chicago, is now engaged in the
window display advertising business.
The new firm is know n as the Coon W in
dow D isplay Company, organized fo r the
purpose of supplying banks and financial
in stitu tio n s w ith window displays. The
offices of the com pany are a t 10 South
L a Salle stree t, Chicago. Mr. Coon was
a d irecto r and assista n t cashier of the
F ir s t N ational B ank of Lovington and
was la te r m anager of the new business
d epartm ent of the City N ational B ank
of E vanston. F o r two years he was sec
re ta ry of the F in an c ial A dvertisers A s
sociation.
N ay, then, let the devil w ear black, fo r
I ’ll have a suit of sables.— Shakespeare.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
1 862
The
Foreman
National
Bank
The Foreman Trust and Savings Bank
La Salle an d W ash in g to n Sts.
Chicago
Combined Capital, Surplus and Undivided Profits exceed
$ 11,000,000
32
THE
NORTHWESTERN
BANKER
November, 1926
State Bank Division Growing Rapidly
N R E V IE W IN G the records of the ac
tivities of the S tate B ank Section fo r
the p a s t ten years, I found th a t C.
B. Hazlewood, then chairm an of the divi
sion, m ade the statem ent a t the annual
m eeting of the A m erican B ankers A sso
ciation held in K ansas City, th a t the new
section would be the largest num erically
in the A m erican B ankers A ssociation and
should include a t least 8,000, and prob
ably m any more, sta te banks and tru s t
com panies, doing a com mercial business
in all p a rts of the country, both city and
country banks. W e are now proud to re
p o rt a m em bership of approxim ately 12,000. This only confirms the excellent
judgm ent M r. H azlew ood has shown in
his m any activities in the A m erican B ank
ers A ssociation work.
True to its tru st, the division has a l
ways cham pioned and continues to cham
pion country banking interests.
The
eventful years in th e ir procession, of
course, bring ever-changing problem s and
the officers of the S tate B ank Division
have been alert in meeting them. This
year we have been busily engaged, in ad
dition to num erous other activities, in
I
By Grant McPlierrin
Des Moines
P resident, S ta te B a n k Division, A . B. A .
( F r o m a d d r e s s b e fo re A . B . A . C o n v e n tio n , L o s
A n g e le s )
encouraging the developm ent of coopera
tive fa rm m ark etin g facilities along
sound economic lines. AVe have con
tinued our cam paign fo r the development
of a b e tte r u n d erstan d in g and rela tio n
ship between sta te banks and the F ed eral
Reserve System , and are gratified a t the
strong and grow ing app reciatio n of the
F ed eral Reserve System evidenced by
our m em ber banks.
W e have actively cooperated w ith the
B e tte r Business B ureaus and o th er
agencies in a nation-w ide cam paign to
educate the general public in the fu n d a
m entals of sound investm ents, and com
m endable progress has been made,
able banking. As one m eans of attain in g
this end, the C learing House Section lias
devised a sim ple plan w hereby any bank
can make an analysis of its accounts and
thus ascertain w hether it is being carried
W e have waged a helpful cam paign fo r
the m aintenance of com plete credit files
on unsecured loans of $500 or more in
each bank.
We have earnestly cooperated w ith the
C learing House Section in bringing about
analysis of accounts, the m aking of
p roper service charges, stan d ard izatio n
of checks, organization of county b an k
ers’ associations and the in stallatio n of
credit bureaus to head off the danger of
duplicate borrow ers.
The S tate B ank Division has been
m indful th a t we will have b e tte r b an k
ings as we have more consistently profiton a t a profit or a loss. To plug the losses
and to increase bank revenues, equitable
service charges have been suggested, m ak
ing each account self-sustaining.
W e tak e p a rtic u la r pride in the prog
ress made in increasing the efficiency of
sta te bank supervision through freein g
this responsible office from p artisan
politics, increasing the com pensation, and
also securing a longer term of office fo r
bank com missioners, w ith provision fo r
an adequate force of qualified exam iners.
A nother problem which has engaged our
atten tio n has been the m aking of a care
fu l study and survey of laws governing
Your New York Correspondent’s
Knowledge o f Foreign T rad e
T
H E S eab o ard ’s te c h n ic a l k n o w le d g e o f F o re ig n
B a n k in g in all its phases is at th e disposal o f
o u r c o rre s p o n d e n t b anks. Specific p ro b le m s p resen te d
to us by m ail or w ire receiv e th o u g h tfu l stu d y an d
p ro m p t actio n .
T H E SEABOARD N A T I O N A L BANK
o f the City o f N ew York
MAIN
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
o f f i c e s
: broad
a n d
b e a v e r
s t r e e t s
November, 1926
THE
s ta te banks. W hile Congress m akes un i
form laws fo r all n ational banks, fo rty eight sta te legislatures vie w ith each
o th e r in the enactm ent of sta te banking
law s— hence, the im portance of an organ
ization like the S tate B ank D ivision m ak
ing a nation-w ide study of these laws
an d suggesting more uniform action. The
d iv ersity of sta te banking laws in the
p ast has been astounding, b u t we are
happy to re p o rt a general tendency the
p ast few years looking tow ard m aking
them more uniform and equitable.
NORTHWESTERN
BANKER
P a raphrased P roverbs
Overnight Mail is the
Shortest Transit Distance
Between T w o Points
■
Our c o n tin u o u s ly operating
Transit and C ollection Depart
ments make th e “s h o r te s t”,
shorter still by:
Receiving and forwarding item s
both night and day.
Using air mail and fast train serv
ice wherever possible.
GRANT M cP H E R R IN
O ur survey shows a general tendency,
especially during the p ast two years,
tow ard a higher degree of uniform ity of
legislation dealing w ith the fundam ental
principles of bank organization and oper
atio n and supervision—-among which may
be m e n tio n e d :
(a) In creasin g the m inim um paid up
c a p ita l requirem ents of banks to $25,000.
(b) C reating of banking boards to act
in an advisory capacity to bank commis
sioners.
(c) As previously stated, freein g the
office from the dom ination of partisan
politics, increasing com pensation of bank
com missioners, and lengthening his term
o f office w ith pow er to appoint necessary
deputies and exam iners.
(d) Giving bank com missioners or
banking boards fu ll pow er to g ra n t or
re je c t applications fo r charters.
(e) Giving banking departm ents full
charge of liqu id atin g failed banks.
(f) P lacing building and loan associa
tions, financing com panies, credit unions,
and p riv a te banks u n d er the supervision
o f sta te banking departm ent.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Special messenger s e r v i c e t o
New York City daily.
All items received at par.
THE
PHILADELPHIA-GIRARD
NATIONAL BANK
PHILADELPHIA, PA.
Capital, Surplus and Profits--$28,000,000
33
34
THE
NORTHWESTERN
BANKER
“This is living, Mary, the real
joy of living!
“For a good many Novembers we
have spent evenings like this, but
to me there is a new cheer, a new
indescribable freedom, about it
this fall. For the first time in my
banking experience I have learned
how to free myself from a load
of details and responsibilities.
“Wessling Services taught me
how. And they not only helped
me personally, as a banker, but
their method, so unique and yet so
simple, is building business for
the bank.”
FROM IOWA AT LYTTON
D.R.WESSLING,PRESIDENT^^^]J^yAR.WOLF VICE PRESIDENT
Planners and Creators o f OriqinalBank Services
November, 1926
(g) B roadening the field of invest
m ents fo r fu n d s of savings banks and
tru s t companies.
(h) P ro v id in g fo r more equitable ta x
atio n of bank stock.
In the field o f fed eral legislation, sta te
banks have a grow ing in terest, especially
since the enactm ent of the F ed eral R e
serve A ct. H ere again the S tate Bank
Division is playing an im p o rtan t p a rt in
in te rp re tin g and voicing the needs and
relatio n sh ip of sta te banks. H appily
th is y ea r we have not found it necessary
to differ from the general A m erican
B ankers A ssociation program fo r federal
legislation. F o r instance, it has long
been recognized th a t state banks are
taxed u n fairly in nearly every state, but
yet the w ay tow ard a more equitable
system of tax atio n , by tax in g banks as
oth er businesses, has been blocked, be
cause states could n o t ta x n ational banks
on their income, and this prevented the
ta x atio n of sta te banks in th e same
m anner. This obstacle was removed at
the last session of Congress when the law,
due to the activities of the A m erican
B ankers A ssociation, strongly supported
by the State Bank Division, was changed
to p erm it the equitable ta x atio n of n a
tional bank shares. H av in g th is enabling
legislation, New Y ork and M assachusetts
im m ediately changed th e ir system of ta x
ing sta te banks and the am ount th a t state
banks will p ay was very m aterially re
duced and the ra te is now on a basis
com parable w ith oth er businesses. This
action has paved the way fo r sim ilar
moves in o th er states, and it is now pos
sible fo r sta te bankers to get w hat they
should have— q u ality in tax atio n w ith
oth er businesses. I n th is review I have
briefly touched only the high spots of
some of the successful achievem ents, but
enough, I am sure, to give you an outline
of our activities. N um erous o th er p ro b
lems w ere handled and countless serv
ices were rendered our g rea t fam ily of
12,000 member state banks.
I t is true, the p a st fo u r years have
been try in g indeed fo r the bankers.
H eavy personal dem ands have been made
on our tim e to discuss business affairs
w ith our clients. W hile m any business
ad ju stm en ts have y et to be made, I feel
th a t the w orst is over, and from now on
our duties will be som ew hat easier, and
therefore, our profession will be more de
lightful. I t has been the purpose of the
S tate B ank D ivision since its organiza
tion, to keep before you continuously
nothing b u t the highest sta n d ard s of
banking, and I am confident the aim fo r
the fu tu re w ill be fo r th e co n stan t im
provem ent of b anking m ethods, and the
th ought of close cooperation w ith all sec
tions and divisions of th e A m erican B ank
ing A ssociation.
Bank A rt-W indow and Lobby D isplays -C lassified Programs
Be a philosopher; but, am idst all your
philosophy, be still a m an.—Hum e.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
November, 1926
THE
NORTHWESTERN
35
BANKER
STARTING A BANK 70 MILES FROM
A RAILROAD
(C ontinued from page 17)
the ground floor, w ith a bucket of w ater
and a d ipper on the outside, to tak e a
d rin k when you w anted it or to w ash up,
from the same bucket. I t was a g rea t
experience to me, to say n othing of M rs.
Je w e tt, who had ju s t come from Chicago.
I w ondered ju s t how they were going to
stow us aw ay th a t night. There were no
p a rtitio n s betw een the different rooms,
except a little calico curtain, and I was a
g re a t deal w orried, bu t we got through
the night all rig h t and s ta rte d out the
next m orning. A fte r going about eight
miles, we came to the Loup R iver, and
th ere being no bridge the horses dhshed
in. The w ater came u p into the wagon
and I was never so scared in my life. I
fe lt sure Ave Avould drown, b u t they pulled
us through and then fo r the next tw entyfive miles, before reaching B roken Bow,
it was a desert country, not a hum an, or
anim al of any description did Ave see,
and I thought to m yself th a t th ere Avere
never tAvo bigger fools th a n JeAvett and
I sta rtin g a bank in such a country.
“W hen Ave finally came over the la st
hill and looked down into the valley, it
did certainly look p re tty . There were
quite a num ber of little neAV residences
and a little hotel, all p ain ted w hite, and
being in the m orning, of course, our cour
age Avas much im proved. I stepped into
the little wooden hotel and said to the
p ro p rie to r: ‘W here is th e b an k ?’ H e
pointed out the window and sa id : ‘Over
across the stre e t.’ I Avent over to a lit
tle one-story fram e building th a t had a
little board about tAvo and a h a lf feet
long over the door—pain ted —BA N K . I
opened the door and stepped in and Avas
surp rised to find nothing th a t looked like
a bank. In one corner a t a table sa t a
young m an rea d in g a laAv book. I said
to him : ‘W here is the b a n k ? ’ ITe said :
‘In the back room.’ The f ro n t room was
tAvelve fee t square and th e back room
about eight by ten. I Avent in and there
sat Je w e tt in one corner, th e safe in a n
other corner, and th a t Avas the bank.
W e called it B urnham and JeA\Tett, B ank
ers.
“I m ight say rig h t here th a t the young
m an in the fro n t office, whom M r. Je w e tt
had m et a fte r reaching B roken B oav, and
they had decided to tak e this little build
ing together, Avas the H onorable Silas
Holcomb, Avho afterAvards became Gover
nor of N ebraska and made a fine record.
Of course, he was our atto rn ey fo r m any
years.
Bank Capital $2,000
“ The cap ital of the bank a t th a t tim e
consisted of $2,000, $1,000 p u t in by Mr.
Je w e tt, and $1,000 by m yself. W e added
$500 a t a tim e as we learned conditions
there, and loaned it out and kep t increas
ing fo r several years, Avhen we learned
th a t the railro a d Avas coming in there,
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
E v ery B ank in Iow a
has now received its Second 1926 Edition of the Iowa
B ank Directory. Every m ail brings to us letters
from Iowa bankers telling w hat a help fu l reference
the D irectory is to them and th eir institutions. As
one banker says, “ I t’s handy as a pocket in a shirt.”
W e still have a lim ited quantity o f the Iowa
B a n k D irectory on hand. B anks desiring
extra copies should order quickly before the
su p p ly is exhausted.
Second
1926
Edition
Accurate
and
Complete
The Iowa Bank Directory
Published Semi-Annually by
THE NORTHWESTERN BANKER
Clifford DePuy, Publisher
DES MOINES, IOWA
36
THE
when we changed it into the F irs t N a
tio n al B ank of B roken Bow, w here we
did business fo r a long tim e Avith a capi
ta l of $50,000.
“W e sta rte d a bahk a t a little toAvn
called Callaw ay, and one a t A rnold and
a t W esterville, in the same county, one
a t G andy in Logan county and another
one a t Sidney in Cheyenne county, and
one a t A rcadia, and I was presid en t of
’em all. T h at AA7as going some fo r a
young kid from M aine, aaT lo had never
before seen a sod house nor been outside
of the city lim its of Lincoln. B u t these
banks all m ade money. I used to visit
them about fo u r tim es h year. I Avould
tak e a little p a ir of ponies and a buck-
NORTHWESTERN
BANKER
board fro m Broken B oav and v isit those
banks and tak e every note in the bank in
my hands and hold it and ta lk about it.
I was th e only exam iner.
“In 1888, a fte r th e leg islatu re had
passed a banking laAV here, I decided to
s ta rt a bank in Lincoln and organized
the A m erican Exchange N ational B ank
of this city. A t th a t tim e th ere were, I
think, nine banks in Lincoln, and, of
course, m ine Avas th e last and sm allest
one. A t th e end of a couple of years
AA7e purchased the S tate N ational B ank
of this city and m erged th e tA\7o under
the nam e of the A m erican Exchange N a
tional B ank. In th is bank D. G. W ing
Avas my assista n t cashier, a t a salary of
GuarantyTrust Company
of New York
140 B roadw ay
LO NDO N
P A R IS
B R U SS E L S
LIV E R PO O L
HAVRE
ANTW ERP
Condensed Statement, September 30, 1926
November, 1926
one tho u san d dollars, and was the only
m an I had. V ice P re sid en t C harles G.
DaAves was one of our directors.
“M r. W ing was w ith me seA^eral years.
D uring th a t tim e Ave had tak en over the
S tate N ational, Avhen Mr. Dawes, Avho
had become C om ptroller o f th e C ur
rency, Avanted me to let him have W ing
fo r a sh o rt tim e to examine receiverships,
as th ere had been a good m any failu res
d u rin g th a t tim e in different states. D u r
ing an exam ination in Boston, M r. W ing
discovered a d efalcation in one of the
banks th ere of n early one m illion dollars,
and he handled it so discreetly th a t the
resu lt was th a t they asked him to assist
them in a reo rg an izatio n of the b ank and
to tak e th e vice presidency, which he did,
as you probably knoAV is a t the present
tim e p resid en t of the F irs t N ational
B ank of Boston, th e larg est bank in New
E ngland, and one of the leading bankers
of our co untry (all owing, of course, to
the fine early tra in in g he h ad here in L in
coln) .
“ Then h ard tim es came on in the period
of ’93, ’94 and ’95. Several banks here
failed and in May, 1899, came an oppor
tu n ity to purchase th is bank, the F irs t
N ational. I t gave us th en th e leading
position Avith deposits equal to all the
others. I th in k th ere A\7ere five banks
here a t th a t tim e. The p resen t combined
resources of the F irs t N ational B ank and
the F irs t T ru st Company, A\Thich is owned
by the stockholders of the F irs t N ational,
is $20,300,437.19, and Ave have employed
in the two organizations 105 persons.”
“NEWS AND VIEW S”
RESOURCES
Cash on Hand, in Federal Reserve Bank
and Due from Banks and Bankers________ $156,306,448.38
U. S. Government Bonds and Certificates_____ 35,430,733.51
Public Securities-----------------------------------------18,636,070.91
Other Securities____________________________ 20,950,906.20
Loans and Bills Purchased___________________ 383,438,589.17
1,664,000.00
Real Estate Bonds and M ortgages-----------------Items in Transit with Foreign Branches--------7,117,029.58
Credits Granted on Acceptances-------------------- 40,770,961.83
Real E sta te_______________ ______ - _________
8,044,029.26
Accrued Interest and Accounts R eceivable-----5,704,185.94
$678,062,954.78
LIABILITIES
C a p ita l_____________________________________ $25,000,000.00
Surplus F u n d _____________________________ 20,000,000.00
Undivided Profits__________________________
4,606,786.44
$49,606,786.44
Accrued Interest, Reserve for Taxes, etc---------7,020,211.93
A ccep tan ces_______________________________ 40,770,961.83
Outstanding Treasurer’s Checks-------------------- 23,971,613.49
D ep o sits__________________________________ 556,693,381.09
$678,062,954.78
(C ontinued fro m page 18)
System in norm al tim es. The com mit
tee Avhich is headed by H a rry A. W heeler,
p resid en t of the U nion T ru st Company
of Chicago, will endeavor to differentiate
betAveen the operations of the co u n try ’s
cred it m achinery in norm al tim es as con
tra ste d Avith th e em ergency conditions
of the previous eight years, and to p ro
m ote public u n d erstan d in g of the n a
tions financial m echanism in the lig h t of
th e neAV economic situ atio n of the
country.
— $—
B. C. Forbes gave a very fine address
before th e A m erican B ankers A ssocia
tion, on w hat he term s his “D ream B ank.”
This dream bank Mr. F orbes p ictu red as
a savings bank. Mr. F orbes said he be
lieved th a t saving was n ex t in im portance
to salvation, th a t all progress, all pros
p erity , all em ployment, all happiness, and
civilization itself was based on saving.
H e also p ointed out th a t the m otto of
every individual should be, “ Save to give
and really live.”
—$—
John G. Shedd, chairm an of the board
of M arshall F ield & Company, died re
cently a t the age of seventy-six, follow
ing an operation fo r appendicitis. Mr.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
November, 1926
THE
Shedd was a director of m any big corpo
rations, including banks and railro a d
com panies. D uring his lifetim e lie was
an a rd e n t golfer and freq u en tly told his
friends, “I reg ard golf as one of the
g rea test blessings of m odern tim es. I t
draw s men from th e ir business as nothing
else can do, and refreshes them fo r new
endeavors w ith a sp irit which only golf
develops.” This is sound adviee and will
be cheerful news to all of the present
banking golfers, and should also be good
advice to all those who have not as yet
taken up the game.
The Bank of England and m any of th e
E uropean n ational banks, excepting those
of F ra n ce and Ita ly , have agreed to u n
derw rite a B elgian reconstruction loan of
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
NORTH W ESTERN
BANKER
$75,000,000. This is th e first big E u ro
pean loan w hich has been floated w ithout
the assistance of Uncle Sam. P erh ap s
they would ra th e r patro n ize th e ir home
institu tio n s, and if so th ere certain ly is
no one in this country who will object.
— $—
Nicholas Murray Butler, p resid e n t of
Columbia U niversity, speaking a t a b a n
quet in New Y ork recently, said, “H ell,
figuratively or otherw ise, is necessary fo r
m an as a ‘cuss’ word, if fo r no other re a
son.” Dr. B u tler f u rth e r em phasized his
point by saying, “I w onder if th ere be no
hell w hat is to happen to the vocabulary
of the m an of high tem per and careless
speech, who wishes to express him self
w ith vigorous com pleteness and no u ncer
ta in em phasis ? F o r m yself I should par-
37
tieu larly deplore the loss of hell.” A t the
p a rtic u la r m oment we can th in k of no
educator in A m erica who has attem p ted
to raise more hell over more different sub
jects, including prohibition and politics,
th a n has th e well-known overseer of Co
lum bia U niversity.
— $—
Trust companies have shown rem ark
able grow th during th e la st th irty years
in the U nited S tates, according to Fran
cis H. Sisson, who was p resid en t la st y ear
of th e T ru st Com pany D ivision of the
A m erican B ankers A ssociation. T h irty
years ago th ere were b u t 242 tr u s t com
panies in the U nited S tates, w ith re
sources of $807,000,000. Today th ere are
2,701 com panies, w ith resources of $18,-
000, 000, 000.
38
THE
NORTHWESTERN
BANKER
November, 1926
Community Work for Indians
ESTABLISHED
18 7 9
Simplify Your
Chicago Transactions
Bankers, especially, know the value and
necessity of directness, promptness and
economy in transacting the ordinary affairs
of the day’s business —and particularly
out-of-town business. These advantages are
gained by routing all your Chicago items
through one institution which possesses
the facilities and experience to render you
the efficient service due correspondent
banks. The State Bank of Chicago places
at your disposal its forty-seven years of
banking experience and its complete finan
cial services.
The new State Bank of Chicago building
— the site of which is now being prepared at La Salle and M onroe
Streets— will provide increased facili
ties for a constantly growing clientele.
A.
H enry
H augan
C h a ir m a n B o a rd o f D irectors
R alph V a n V echten
P resid en t
A.
L eroy
G oddard
C h a ir m a n E x e c u tiv e Committee
O scar H . H aug an
Vice C h a ir m a n o f th e B o ard
State Bank
of Chicago
LA
SALLE AND WASHINGTON STREETS
Member Federal Reserve System
C apital
$2,500,000 S urplus <Sl U n d iv id e d P rofits $7,500,000
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
A new spaper dispatch un d er a Lincoln,
N ebraska, d ate line, states th a t a group
of In d ian s on the W innebago reservation
has asked the county agent to assist them
in organizing a Com m unity Club.
The purpose of the club, it is stated,
w ill be to ca rry o ut a program of exten
sion w ork and to stu d y b e tte r farm in g
in an organized way. D em onstrations,
lectures and moving p ictu res w ill be in
cluded in the program .
I t is said th a t th is is the first organiza
tion of th e kind in the sta te of N ebraska.
I t m ay be considered unique, b u t it cer
ta in ly speaks well fo r the In d ian . There
are some w hite folks who m ight profit
by em ulating his example, in th a t respect.
Cornelius V anderbilt, J r., a voluntary
exile from wise p aren tal advice, “wants to
be a new spaper pow er.” Well, riches in
telligently used will go a long way tow ard
th a t goal— but not all the way, as the
young m an is likely to learn.
The High Price of Health
E a rly to bed,
E a rly to rise,
A nd your girl goes out
W ith o th er guys.
— Yellow Jacket.
One Untroubled State
There is one country in E urope n ot in
volved in the political tangle and financial
troubles and unrest so prevalent among its
neighbors. I t kep t out of the w ar al
though surrounded by the fighting nations
— Prance, Italy, Germany and A ustria.
I t is Switzerland, whose area is less than
one-third th at of Illinois. Its government
is a confederation of twenty-five cantons,
and its president H en ri H aeberlin. I t
has a state council and a national council,
and universal suffrage, under a federal
constitution adopted fifty years ago, and
its unity has been m aintained since 1291.
I t has compulsory education and seven
universities, and its population is about
875,000 more than th a t of Chicago.
Sw itzerland means scenery to most
Americans, along w ith wines, watches,
cheese and splendid forests. The high
peaks of the Swiss A lps are numerous,
and tourists find first class accommoda
tions everywhere.
N ational defense is compulsory, service
in the national m ilitia being required ; and
it has been extraordinarily efficient. No
doubt this fact has helped keep it out o f
war, together w ith the governm ent’s set
tled policy of tending strictly to its own
business.
No p ictu re can be good which deceives
by its im itation, f o r the very reason th a t
n o th in g can be b ea u tifu l which is not
tru e.— Ruskin.
November, 1926
THE
NORTHWESTERN
BANKER
39
Points of Interest
in F {ew Y or\ C ity
brings its services
right home to all customers through its
offices in eight business communities in
Manhattan and Brooklyn. Each office
is a unit in its own district. All of
them are welded into one institution
for the service of business men.
T h e B a n k o f A m e r ic a
lMETROPOLITAN tMUSEUM OF cART
Situated in C e n tral P ark facing F ifth A v e '
nue a t 8 2 nd Street, th e M useum w as opened
M arch 30 , 1 8 8 0 . T h e collections, ow n ed and
adm inistered b y a B o a r d o f T ru stees, are
th e largest in th e U n ite d States, em bracing
Egyptian, G reek, Roman, E uropean, O riental,
N e w E astern and A m erican A rt. O v e r a
m illion people v is it th is w o n d e rfu l old
M useum each year.
THE BA N ÎW ÏÂ M ERICA
ESTA BLISH ED 1812
NEW YORK CITY
C apital, Surplus a n d U n d ivid ed P r o fits over $ 1 1 ,0 0 0 ,0 0 0
Bread Cast Upon FUaters
In the rapid growth of the Fidelity Trust
Company, its officers have never lost sight
of the fact that friendly helpfulness toward
customers has put their bank where it is—
and that friendly helpfulness will carry it
further.
In furthering the welfare of our customers,
we have fared well ourselves.
Resources Over Fifty M illion Dollars
In the Center of Things Financial
Fidelity Trust Company
.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
120 Broadway
of
Equitable B uilding
THE
NORTHWESTERN
BANKER
Standard Gas 8CElectric Co.
System Has More Than
160,000 Shareholders
a r t ic ip a t in g
ownership of public
Putility companies by their customers is a
development from which far-reaching benefits
are being derived — both by the utility com
panies and the public requiring their services.
It has proved sound in every respect.
Utility companies embraced in the Standard
Gas and Electric system were pioneers in cus
tomer ownership, having taken a conspicuous
part in the movement since 1915. As a result
of the companies’ activities and the friendly
response of patrons, about 62 per cent, or
upwards of 100,000, of the Standard Gas and
Electric system’s 160,000 shareholders are cus
tomer-shareholders of the operated companies.
Investment in Standard Gas and Electric Com
pany assures the protection of wide property
distribution and specialized long-experienced
management.
New Booklet on Request
Large 4-color map of the United States and comprehensive 32-page illustrated booklet, fully describing the properties and territories served,
sent without obligation.
Ask for FG -361
[
'l l
II
II
JJ
H . M. Byllesby 8i Co.
I n v e s t m e n t S e c u r itie s
231 South La Salle Street, Chicago
NBW YORK
DETROIT
BOSTON
MINNEAPOLIS
PHILADELPHIA
ST. PAUL
PROVIDENCE
KANSAS CITY
Investm ents Backed by S uccessful E n g in eerin g -M an ag em en t
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
November, 1926
THE
November, 1926
NORTHWESTERN
BANKER
41
SPECIAL SECTION, INVESTM ENT BANKERS
ASSOCIATION CO N V EN TIO N
W h a t the Investment Bankers
Association Is Doing
T H IN K the first in stin ct of every r e
tirin g presid ent of the I. B. A. is to
express his deep g ratitu d e a t the p riv
ilege th e mem bers have given him. The
contact th a t a presid en t gets w ith the
personnel o f security houses all over the
country is a th in g th a t the fo rtu n a te
holder of the office never forgets. I feel
personally indebted to the hosp itality of
m any hundred investm ent bankers who
en tertain ed me a t the group m eetings,
and in atten d in g those m eetings, and the
two conventions, I have trav ersed this
y ea r th irty -fo u r states. I m ention th a t
m erely to em phasize the ex tra o rd in arily
com plete geographical d istrib u tio n of our
organization.
I
Mr. Fenton’s Death
The w ork of the y ear was g reatly sad
dened fo r all of us by the untim ely death
of F re d F enton, in the m idst of his la
bors fo r the A ssociation. F re d was a
tru e frie n d of every member, and the con
stru ctiv e grow th of the A ssociation and
its groups, over the years, was undoubt
edly due more to him th a n to any other
single member. H e had the capacity of
thinking out our problem s, both in the
large and in com plete detail, and he com
bined w ith th is a political sense, using
the w ord in its best m eaning, which en
abled him to get things done w ith the
m inim um of lost m otion. I w ant to add,
a t this tim e, a w ord of deep appreciation
fo r the loving care w hich the Los Angeles
group gave him during his illness.
I sta rte d the year, and I finished it,
w ith the definite thought th a t the w ork
of our n ational com m ittee is exceedingly
well done, and th a t the com bination of
th is organization w ith the very valuable
field w ork of the groups is undoubtedly
the rig h t set-up w ith the m any different
kinds of problem s th a t come up. The n a
tional com m ittees go back to the fo u n d a
t i o n of the association; the group or
ganization is only about five years old,
but it has become a m ost indispensable
p a rt of our work. I n a y ear so fu ll of
constructive effort, it m ay seem u n fa ir
to single out any special instances, but
I w ant, nevertheless, to call a tten tio n to
the very effective w ork-out of our con
ta c t w ith the blue-sky situ atio n in the
various states. S ta rtin g w ith the years
of heroic work, nearly single-handed, by
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
A ustin, Septem ber 13th. M ost of you
have seen th is b u lletin and, although you
Retiring President
m ay or m ay not have been in terested
(F rom . Q uebec a d d r e s s )
in road d istric t bonds, you m ay have no
ticed th a t this b ulletin covers some 820
B. W endell, we have now co n stitu ted a sep arately listed issues, to g eth er w ith the
blue-sky bureau, as you know, under the
date of the o rd er cre atin g ; p articu la rs
efficient guidance of M r. Davis, whose of record of the am ount and the date of
w ork is the double-headed proposition th e election o rder and th e date of the
of selling to the various blue-sky com election. I th in k you are all of you more
m issioners th e id ea th a t th e association
or less fam iliar w ith the special diffi
and its m em bership are loyal frien d s of
culties presented by the Texas road dis
proper, w orkm anlike supervision, and, in tr ic t cases and by the im provem ent dis
tu rn , o f in te rp re tin g to the m em bership tric t cases in the northw est. At each
the constantly changing sta tu s of the sta te in this situ atio n your m unicipal se
regulation. This b ureau rests on the
curities com m ittee, w ith the im p o rtan t
principle long since adopted by the pub aid of the groups, fu rn ish ed legal and
lic u tility com panies; of w orking w ith ad m in istrativ e guidance, and demon
regulation, in stead of ag ain st it. B oth stra te d conclusively how a general asso
parties, the reg u lato rs and th e d istrib u ciation can u n d ertak e w ork which o th er
tors, m ay be presum ed to be quite hon wise is nobody’s business because it is
est in th e ir p urposes; the th in g is to get everybody’s business. W e have cheer
them around the table as frien d s and a l fu lly made ap p ro p riatio n s fo r th is w ork
lies, ag ain st the common enem y; the which would have been a heavy burden
crook. I t was our pleasure a sh o rt tim e on any individual house, b ut were borne,
ago to e n tertain in New Y ork the con unnoticed, by the m em bership as a whole.
vention of blue-sky com missioners from
A nother k ind of th in g th a t wTe can do
the various states. Som ething like fifty
of these gentlem en were present, and I is well exemplified by H ow ard Beebe’s
th in k I am correct in sta tin g th a t a fte r excellent w ork this y ea r as chairm an of
a session of fo u r days th ere th ey were the com m ittee on fo reig n bonds. W e
shown w ith entire freedom all th a t was devoted a good deal of tim e a t the group
of in te rest to them in the w orkings of m eetings la st spring to discussing some
the issuing houses and of the stock ex of the very baffling problem s w ith which
change. They w ent home w ith the feel our m em bership is faced in th is m a tte r
ing th a t they were dealing w ith frien d s of foreign bonds. A t a tim e w hen highand equals, in stead of w ith th e e x tra grade A m erican bonds are becoming very
ord in arily inhum an type p o rtray ed in scarce, w ith extrem ely narrow commis
new spaper headines and movie captions sions to cover the cost of m erchandising,
un d er the general nam e of W all street. foreign bonds have been in relatively
p le n tifu l supply and w ith relatively wide
Coordinated Effort
commissions. The grow ing p o p u larity of
I have m entioned our w ork on the blue- this class of security d u ring the p a st two
sky situ atio n in some detail because it or th ree years has removed m ost of the
is a very good example of the k in d of early drekd w ith w hich the general sub
thing th a t an association can do, b u t th a t je ct of foreign bonds was approached,
no single house can very well do by it but, nevertheless, m any houses have fe lt
self. There are m any other instances of g reatly puzzled fo r guidance as to
the value of coordinated effort in dealing w hether they ought to sell certain of these
w ith certain problem s too big or too com bonds to th e ir custom ers or not. There
plicated or too w ide-spread to be the n a t was a g rea t scarcity of reliable and im
p o rta n t sta tistic a l in fo rm atio n reflecting
u ral responsibility of any single house.
I have before me the Septem ber 7th on the goodness o r badness of the bonds
B ulletin, listin g all bond issues of Texas offered and no way of g ettin g in fo rm a
road d istricts fo r which v alid atin g bills tio n quickly or easily to supplem ent the
w ere introduced a t the special session of inform ation, p erh aps p rejudiced or col
the Texas leg islatu re which convened a t ored, which was set fo rth in the offering
By Ray Mort is
42
THE
circulars. This is a question which we
have debated long and earnestly a t gov
ern o rs’ meetings, and the way H ow ard
Beebe has w orked it out this year is quite
in line w ith the best trad itio n s of the
I. B. A. You are fam iliar w ith his re
po rts so I will m erely say th a t he and his
com m ittee have taken w hat seems the
n a u tra l and sound steps tow ards cre a t
ing a centralized and im p artial bureau of
service and inform ation fo r the benefit of
I. B. A. members who w ant to know
about foreign bonds— again a job which
no house could very well have perform ed
alone.
G ilbert points o u t th a t the association
has always specialized in com m ittee w ork
dealing w ith the goods sold ra th e r th an
w ith the problem s of selling them . We
have, and have had, able com m ittees p ass
ing on railo ra d and in d u stria l securities,
Questions of Ethics
o n c e r u in g
s o u r c e s
2
0
0
,
o
f fa c t s
0
0
0
A T the ready call of our Investigating and
A. Buying Departments are over 200,000
separate statistical files containing essential
information on foreign and domestic industrial
corporations, public utilities, railways, munici
palities, governments and other borrowers.
This wealth of facts and figures, backed by
seasoned investment judgment, forms a foun
dation for our investment recommendations to
banks. We will gladly send our monthly list
of recommended bonds.
T h e N ational City Com pany
National City Bank Building, New York
Offices in more than 50 leading cities throughout the world
.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
SHORT
TERM
NOTES
.
November, 1926
m unicipal and to reig n bonds, b u t we have
p aid com paratively little atten tio n to the
relatio n s between house and house; to
salesm en’s com m issions; to our policy, if
any, in relatio n to bonds where the m ar
gin of profit is less th an a living w ag e;
to syndicate term s and practices, by the
larg e issuing houses which m ake it diffi
cult fo r the outlying d istric ts to do th e ir
w ork p ro p erly and efficiently.
P a r t of th is deficiency is being met,
this year, by the able w ork which P liny
Jew ell is doing. R eform s in business
practice, and helpful m odifications of it,
do n o t happen overn ig h t; they are usu
ally the resu lt of long effort, and any
body optim istic enough to th in k th a t
every p ractice w ith the seeds of in ju s
tice in it w ill be changed as soon as a
com m ittee rep o rts on it, ought, fo r p u n
ishm ent, to be made chairm an of the com
m ittee ! B u t my own feeling has been
th a t we, as an association, can be im
mensely effective in correcting practices
th a t we do not like it, and only if, we
proceed on a basis of absolute unanim ity,
sta rtin g w ith a few g rea t fundam entals
th a t are quite above d isp u te ; adopting
those as sta n d ard practice w ith all due
form ality, and then proceeding quite
g rad u ally from the know n to the un
know n and the d eb atab le; a little a t a
time, and w ith or fe e t alw ays firmly on
the ground. I have alw ays im agined th a t
the ra th e r ex tra o rd in ary d u rab ility of
the Ten Com mandm ents was due to the
fa c t th a t Moses recorded the best sta n d
ard practice of the tim e, ra th e r th a n a t
tem pting to create new stan d ard s by leg
islation. P ro b ab ly the jo u rn alistic com
m ent of the tim e thought the Ten Com
m andm ents were ra th e r d ull; everybody
knew about them anyw ay! A nd I sus
pect th a t when we get around to the
fo rm ulation of ten com mandm ents, or
fo u rteen points, of good practice, th a t
they w ill seem ra th e r dull, to o ; m ost of
us will alw ays have done th a t w a y !
Association Can Decide
a
BONDS
BANKER
tins year, looking tow ard cleaning up
some of the hith erto unsolved questions
of f a ir procedure, th a t have perplexed
the association from the earliest days.
The results of its work, I th ink, are go
ing to be far-reaching, and I w ant to di
gress a m oment a t th is po in t to consider
w hat m ay be called the in te rn al problem s
of our work, as d istin ct from the ex ter
nal. E very tim e A rth u r G ilbert has
nothing to sell, or, every tim e the fish
a re n ’t biting, he w rites me a le tte r, six,
eight or ten pages long, on th is subject.
The Com mittee on E thics and Business
P ractice, headed by your incoming p resi
dent, has also sta rte d a tra in of inquiry
C
NORTHWESTERN
ACCEPTANCES
But, nevertheless, we as an associatito n are definitely able to fo rm u late w hat
is f a ir and w hat is not, and to get our
code adopted by the p ressure of public
opinion, if we lim it ourselves to essen
tials, and adhere rigidly to a few fine,
solid principles th a t are a t the base of
all good business.
The oth er h alf of our w ork between
houses, inside th e m em bership, is u n
doubtedly com plicated by the fa c t th a t
we, as an association, com prise both buy
ers and sellers, orig in ato rs and d istrib u
tors, and th ere sometimes seems to be
lack of m u tu ality betw een the two fu n c
tions. F o r th a t reason I have always
fe lt th a t it was a card in al p o in t of our
policy to be rep resen ted fu lly on the
board by both types o f houses, and by
the best men in the business. I f you w ork
any association w ith th e best men in the
business, you somehow get th e best re-
November, 1926
TH E
s u its ; if you let yourself be represented
b y juniors, you get ju n io r r e s u lts ! T hat
is why I have w anted to reduce the num
b e r of governors’ m eetings, and, in gen
eral, the p ressure on governors; so th a t
th e best and busiest men would be able
to serve. W e have alw ays been f o rtu
n ate in the quality of our governors, and
I hope we alw ays will be, because if the
u ndoubted leaders in any business stand
to g eth er fo r m utual help, in struction, and
th e prom otion of frie n d ly relations, then
you have got the ideal of association
w ork. A nd th a t, gentlem en, is w hat we
sta n d for.
A t the risk of saying over again some
o f the things which we discussed p re tty
fu lly in the group meetings, I should like
to re ite ra te in closing th a t there are the
b est of reasons why this association and
its w ork should be taken m ost seriously
b y orig in atin g and d istrib u tin g houses
alike. A p a rt from all the bread-and-but
te r questions of the services which we
vender to our members, and a p a rt from
th e immense advantage w hich comes out
o f the personal contacts a t conventions,
governors’ m eetings and group meetings,
th e re stands out the fa c t th a t A m erica
has ra th e r suddenly become by an enor
mous m argin the g rea test investing coun
tr y in the world. The old sta n d ard s of
investm ent banking, the old size of the
ta sk and the m achinery fo r doing it have
■changed com pletely under this present
d ay set of conditions where th ere are
seven or eight thousand m illion dollars’
w orth of securities to be sold every y e a r;
w here there is a selling organization de
veloped on the models of the L iberty
B ond cam paigns and reaching into every
liam let across the country, and where
th e re are th e n a tu ra l tendencies to do
th in g s h astily and not quite perfectly,
g row ing out o f the ex tra o rd in ary ra p id
ity w ith w hich this distrib u tio n has been
developed.
To an ex tra o rd in ary extent we are the
custodians of this indu stry . I f we do our
w ork in a big way and w ith complete
thoroughness, we are a p t to rem ain the
custodians, otherw ise we are a p t in an in
creasing degree to be m ade subject to
rules and regulations coming from out
sid e our ran k s and form ulated by people
who know less about the business th a n
we do. I t sounds like flattery, b u t it is
th e sim plest common sense to point out
th a t never in the history of the w orld
w ere th ere as m any men qualified to
m a n u fa ctu re and sell securities gathered
tog eth er a t one tim e and place as we
g a th e r to gether a t these meetings. W e
have the ta le n t and we have the high
m oral sta n d ard s th a t go w ith an honest
a tte m p t to do a good job fo r our custom
ers and fo r our corporation clients. I
see no reason why w ith this very com
p lete set of qualifications the Investm ent
B ankers A ssociation cannot exercise,
an d continue to exercise, a clean, fo rce
f u l and helpful leadership.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
N O R T H W E S T E R N
43
B A N K E R
A n Enlarged
Investment Service
T h e C ontinental an d Com m ercial
C om pany unites in one organization
both the former Bond D epartm ent
o f the C ontinental and Commercial
T ru s t an d Savings B ank an d the
C ontinental and Commercial Secur
ities Com pany. A ll o f the stock of
this C om pany is owned by the stock
holders o f the C ontinental and C om
m e rc ial N a tio n a l B a n k a n d its
directorate is com posed o f officers
and directors o f the C ontinental and
Commercial B an k s.T h e C om pany is
engaged in underw riting, wholesal
ing and retailinginvestm ent securities
CONTINENTAL and COMMERCIAL
COMPANY
CHICAGO
2C8 S. LaSalle Street
NEW YORK
5 Nassau Street
44
THE
NORTHWESTERN
November, 1926
BANKER
Pledge Aid to Blue Sky Laws
E CLA RIN G th a t “this com mittee
is steadily w orking tow ard the
establishm ent of certain sound
principles based on f a ir practices which
all can stand upon in all sections,”
H ow ard J. Beebe, of H arris-F o rb es &
Co., New York, chairm an of the com mit
tee on business ethics, told the annual
convention of the Investm ent B ankers
A ssociation a t Quebec th a t the rap id dis
trib u tio n of securities these days m ust
not rea ct unfavorably on the ethics of
the business.
D
H e said, in p a r t :
“A m erica has become by an enormous
m argin the g rea test investing country in
the world. The old sta n d ard s of invest
m ent banking, the old size of the task
and the old m achinery fo r doing it have
changed com pletely. B etw een $7,000,000,0000 and $ 8 ,000 ,000,000 w orth of se
curities are sold and d istrib u ted each
year and there are tendencies to act
hastily and not quite p erfectly , growing
out of the ex tra o rd in ary ra p id ity w ith
which the d istrib u tio n has developed.”
BROKAW
AND
COMPANY
105' South La Salle S treet, Chicago
D irect Wire to Edw ard B. S m ith & Co.
New York • Philadelphia
General Trading Department
Specializing in Packing House,
Canadian, Equipment Trust
and Pacific Coast Securities.
S pecial B on d S ervice to Banks
Tribute Paid to Fenton
Silent trib u te was p aid to the memory
of F red erick R. F enton, executive secre
ta ry of the association, who died last
spring.
D iscussing the possibility of increased
commissions on com mercial p ap e r in the
re p o rt on com mercial credits, subm itted
by C hairm an W . W . Sachs, Goldman
Sachs & Co., New York, it was stated
th a t it has been decided tem p o rarily to
abandon th is object. The rep o rt touched
upon the keen com petition which existed
between houses, leading to indiscrim inate
bidding at rate s u n d er the p roper m arket
level and the practice of g ran tin g options
to banks, b u t sta te d th a t these practices
had been g reatly dim inished.
Touching upon the purchase of com
m ercial p ap er by banks, the rep o rt s a y s :
“A t one tim e banks would not lend to
the best of th e ir custom ers a t rate s as
low as th e open m ark et fo r commercial
p aper, because com mercial p ap e r could be
bought w ithout obligation to renew, but
in recent years the banks are com peting
vigorously fo r com mercial business and
consequently w ith com mercial houses.
The com mercial loans show an increase,
b u t it is relativ ely sm all com pared to the
grow th of the co u n try ’s business. This is
due to im proved tran sp o rta tio n , quicker
turnovers, and m any corporations now
tu rn to the investm ent field fo r w orking
capital.
“ The new school of bankers,” continues
the rep o rt, “disregards th e lessons of
1907, 1914 and 1920. They close th eir
eyes to the advantages of investing p a rt
of the funds in outside com mercial paper,
where th ere is no obligation to renew, and
p re fe r to lend to custom ers a t low ra te s.”
R eferrin g to th e recom m endations fo r
financial statem en ts fro m public service
holding companies, P lin y Jew ell, Coffin,
B u rr & Co., Boston, chairm an of the com
m ittee, sta te d th a t it was recommended
th a t a com m ittee be appointed to confer
and w ork w ith houses handling such
issues.
Fees to Be Investigated
IOWA REPRESENTATIVES:
Edward J. Kelly and Maurice F. Leahy
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
I t was resolved th a t a com m ittee be
appointed by th e P re sid en t to invite co
operation am ong houses specializing in
P ublic Service H olding Com pany issues
and of th e economists in order to obtain
up-to-date inform ation.
M r. Jew ell
sta te d th a t houses dealing in issues of
th is ch a racter had m anifested the utm ost
w illingness to w ork w ith the association
in th is regard.
In the re p o rt of the legislation com
m ittee, C hairm an H ugh W . G. Grove, first
W isconsin County, M ilwaukee, stated
th a t the com m ittee is now investigating
the reasonableness of charges by surety
November, 1926
THE
com panies fo r s ta tu to ry bonds required
by the blue sky law s in several states.
A rth u r H . G ilbert, of Spencer, T rask
& Company, Chicago, rep o rted th a t w ith
each y ear there is a b etter u n d ersta n d
ing and g re a te r unifo rm ity of blue sky
laws in the country and th a t the com
m ittee is o f the opinion th a t the inv esti
gation of high grade and seasoned securi
ties offered by the Investm ent B ankers
A ssociation can be accom plished by the
blue sky law com missioners w ith the ex
p en d itu re of less tim e and effort th an a t
present, and fu rth e r th a t the expenses
of selling issues in some states, such as
fees, investigations, ex tra accounting,
etc., prohibit in m any states the offering
of high-grade issues.
The com m ittee called atte n tio n to the
need of some m easures by which selling
of securities can be accom plished
throughout the country sim ultaneously.
A rth u r G. Davis, recently appointed
field secretary to aid in the Blue Sky Law
work, sta te d th a t it was his constant
effort to prom ote the idea th a t there
should be no sectionalism in laws reg u
la tin g the sale and d istrib u tio n of securi
ties.
New F orm of In vestm ent
A n in te restin g and significant develop
m ent in the investm ent field in Chicago
is m arked by the consum m ation of a tru s t
agreem ent betw een the Illinois M erchants
T ru st Com pany and the Chicago T itle &
T ru st Company, as tru stee, by w hich the
Illinois T ru st Com pany was enabled to
offer recently fo r the first tim e a new
type of security know n as F irs t R eal E s
ta te M ortgage C ollateral Gold Bonds.
These bonds, yielding 5% per cent, are
a direct obligation of the T rust, and are
secured specifically by deposit w ith the
tru ste e of first m ortgages upon im proved
real estate located in the “ G reater Chi
cago” d istrict.
The significance of the announcem ent
is tw ofold. I t gives investors the first
o p p o rtu n ity to benefit by th e Chicago
T itle & T ru st Com pany’s long experience
and conservatism in the selection of real
estate m ortgages. Previously, this com
pany has purchased m ortgages only fo r
its own account and fo r tru s t funds u n
der its control. Secondly, it is the occa
sion of the Illinois M erchants T ru st Com
p a n y ’s first entrance into the rea l estate
m ortgage field.
Com m enting on the new development,
R oger K . B allard, vice p resident of the
Illinois M erchants T ru st Company, in
charge of the bond departm en t of th a t in
stitu tio n , states th a t the decision to en
te r into the tru s t agreem ent was strongly
influenced by a grow ing dem and on the
p a r t of investors and financial houses
fo r a real estate security which would
have broader safeguards th a n those com
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
NORTHWESTERN
45
BANKER
monly offered. W hen the oppo rtu n ity
came to make an agreem ent w ith a house
of such high stan d in g as the Chicago
T itle & T ru st Company, and it became
possible to back the bonds w ith such u n
questionable security as this plan offers,
the bank welcomed the o p p o rtu n ity to go
ahead.
The selection of the m ortgages which
provide the secu rity is made by the Chi
cago T itle & T ru st Company, every m o rt
gage being legal fo r the investm ent of
tru s t funds u nder the Illinois law. No
m ortgage exceeds 60 per cent of the tru s
te e’s ap p raised value of the property.
In excess of the p a r value of the new
bonds issued, there is a 10 p er cent m ar
gin of additional real estate m ortgages
supplied out of the tru ste e ’s own holdings
and held in a special protective fund.
The soundness of the selection of m o rt
gages by the tru stee it indicated by the
tru ste e ’s fo rty years of experience as a
p u rch aser of real estate m ortgages in
large am ount fo r its own investm ent as
well as fo r tru s t funds u n d er its control.
D uring these fo rty years purchases by
the tru ste e have been in excess of $ 2 0 0 ,000,000, of which more th a n $50,000,000
is now being carried fo r the tru ste e ’s own
account and in tru st funds. In the few
instances in which foreclosures have
been necessary, the n et resu lt to date has
been a su b stan tial profit.
F l a m i n g o H o t e l - C h ic a g o
$ 3 7 5 ,0 0 0 U nsold P ortion Nona) O ffered
o f T o ta l Issue o f $ 1 ,0 0 0 ,0 0 0
6V z%
First Mortgage Real Estate Serial Gold Bonds
D a ted A pril 1, 1926
D ue S erially 1929-1939
O V E R L O O K IN G L A K E M IC H IG A N A N D JA C K S O N P A R K
1. Flam ingo H o te l
3. Jackson P a rk
5. W inderm ere H otels
2. P arkshore A p a rtm e n ts
4. Jackson T ow ers A pts. 6. E lectrified 111. C ent. R . R.
LOSED first m ortgage on land and 17-story fire-proof apartm ent
hotel building, directly facing Lake Michigan, one-half block from
Jackson P ark, w ith its furniture, furnishings and equipm ent, and a
first lien on th e income from th e hotel.
V aluation o f land, completed building, furniture and equipm ent is
appraised a t $1,800,000—a 56% loan.
N et annual income is estim ated in excess of $200,000 more than
three tim es th e greatest annual interest charges on this bond issue.
P R IC E : 100 and accrued interest, to yield £>Vi%.
C
Write for Circular 80S
WOLLENBERGER & CO,
üfif
Mii
In v e s tm e n t B a n K e rs
»05 S o . L a S a l l e S t r e e t
“
4 1
Y E A R S
C H IC A G O
OF
I N V E S T M E N T
fnf
i l l
^
B A N K I N G
46
THE
NORTHWESTERN
BANKER
Deplores Small Profit on Bond Sales
HAT the big city bond houses are
not abusing the sm all dealer by de
priving him of his ju st profits, was
the statem en t m ade by J . J . H anauer,
o f K uhn, Loeb and Company, New York,
speaking la st m onth a t the Investm ent
B ankers convention in Canada.
Mr.
H an au er spoke in p a rt as follows :
“I firm ly believe th a t the m ajo rity of
the members of the Investm ent B ankers
A ssociation have not m ade a cent this
y ear,” he said. “ This is n o t tru e of the
la rg er originating houses, which are few
in num ber, but it is tru e of the reta ile r
who makes up the m ajo rity of our mem
bership.
T
Interest All the Same
“I w an t to correct an im pression, in
the first place, th a t there is any different
in te rest between the large issuing house
in New Y ork and the thousand or twelve
hundred members of the Investm ent
B ankers A ssociation, be they large or
sm a ll/’ M r. H an a u er said. “ They are all
on the same side of the table.
“ The g rea t difficulty is w ith the m anu
fa c tu re r, th a t is the corporations. The
y
'
'
yj.ii,*
vV.' %' .
*
r
:¥
i
‘. ’ .C‘**v*** ---~
~— ^ 1 .
"t\. **. *•’* 1 t, */' . ' & ~~~----------—--------------_
a
%
att
‘
M
.
',s< A A - - -
- i i« * ,«•« h “ ;
l l l B
-
v
'
1
l l i l j
— —- A I
•V*
.
i
1
1
1
•
,/
'
. ¡i; ';.;;;I
!¡; '
\
(
^
..
November, 1926
borrow er has been u n d er the im pression
th a t it is very easy to sell securities and
th a t the m argin should g et sm aller and
sm aller. I t is not only tru e of the corpo
ratio n s. I t is tru e of all sorts of au th o r
ities. M unicipal and sta te securities, sold
by com petition have gotten down to such
a little m argin th a t I dare say of the 1,200
members of the In v estm ent B ankers A s
sociation probably not more th a n a h an d
fu l would ever b o th er w ith m unicipals,
except possibly local m unicipals, because
they cannot m ake any money o ut of them.
No Fault of Issuing Houses
“ The large issuing houses in New Y ork
are always keeping in m ind th e intensive
selling of the securities and the necessary
commission th a t should be p aid to the
distrib u to rs. I f it is cut down, it is not
because th e issuing house is anxious to
squeeze any of th e d istrib u to rs; it is
sim ply because they have not been able
to purchase th e securities a t a price to
p erm it th e paying of an adequate com
pensation and the issuing houses them
selves are the first ones to suffer from
th a t. I t is not th e ir fau lt. They find
th a t securities are n ot as well placed, if
you do not pay an adequate com pensa
tion.
“The securities come back and we find
d uring the next sixty or n inety days th a t
we are buying back securities sim ply be
cause they did not place them rig h t. So
in considering th is m atter, don’t th in k
th a t it is a question betw een the issuing
houses on the one h an d and the d istrib
u to r— large or sm all— on the other.
Education Needed
T h e S y m b o l o f C iv iliz a tio n
—an d
S a fe I n v e s tm e n ts
Darkness • • • • a tiny button on the wall • • • • the
pressure of a finger • • • • a room ablaze with light.
Clean • • • • simple •••• economical • • • • safe • • • •
the most common, best known use of Electricity.
An Example:
Public Service Co.
•Whenever you press an electric button
or close a sw itc h , th a t in s ta n t more
bond interest is being earned to add to
the income of those who have had the
wisdom and foresight to invest in Elec
tric Power and Light Bonds.
of
Northern Illinois
First and Ref. 5K*S
Series A.
Due June 1, 1962.
Price to Yield
Over 5Vt%
Circular
on request
Thompson Ro ss & Co
EST A B L ISH ED
I N V E S T M E N T
Bank Floor
NEW YORK
.
1912
S E C U R I T I E S
29 S. La Salle Street
CHICAGO
Telephone Randolph 6380
Copyright, 1925, T. R. AcCo., li
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
SAN FRANCISCO
“I t is the p o in t of view of the in v est
m ent bank and the one p o in t of view of
the m ake of the securities. A nd if there
is one th in g to help th e situ atio n it is to
educate the officials of corporations and
the officials of governm ent th a t it is in
th e ir best in te rest to m ake th e ir bonds
popular, to sell them a t rig h t price and
p erm it the public to m ake a little money
and not to sell them a t the very highest
price th a t, in com petition, they can get.
“ T hat is ju st as tru e of A m erican se
curities, as it is of any o th er k ind of se
curities. I t is ju st as tru e of C anadian
securities, I m ight say, while I am here
in Canada.
The C anadian provinces
have g otten such high prices fo r th eir
bonds in the la st few years, th a t they are
all spoiled.
“All of the 1,200 members of the I n
vestm ent B ankers A ssociation m ust make
it th e ir business w henever they m eet men
who have securities to sell, to preach
to them the cost of d istrib u tin g and the
benefit of them having th e ir securities
widely and well and p erm anently dis
trib u ted . Much m ore good can be done
in th a t w ay th a n by th in k in g of it in the
sp irit of the In v estm en t B ankers or dis
trib u to rs ag ain st the issuing houses.”
November, 1926
THE
NORTHWESTERN
47
BANKER
Advantages of Commercial Paper
H A T m any banks have neglected
com mercial p apers in fav o r of p ri
vate credits, and have thereby ex
posed them selves to em barrassm ents, was
the them e of the re p o rt of the commercial
credits com m ittee of the Investm ent
B ankers A ssociation a t th e ir Quebec con
vention. The rep o rt in p a rt said:
“ Time was, and not so m any years ago,
when few banks, even in the principal
money centers of the country, would
consider lending even to the best and
biggest of th e ir clients a t a ra te of dis
count as low as the open m arket ra te fo r
prim e com mercial paper.
There was
good and logical reason fo r this policy.
The bank’s own client had a t all tim es
a rig h t to dem and his line, if adequate
balances w ere kept, and if his financial
condition was sound. The bank had to
tak e care of its custom ers a t all tim es,
and such consideration on the p a r t of the
bank w arra n te d a som ew hat higher rate.
Commercial paper, on the other hand,
could be purchased w ithout obligation to
renew , and in such quantities and a t such
tim es as suited the buyer. I t was and
should be considered a secondary reserve.
In tim es of money stringency, the funds
received from m a tu rin g m arket paper
were extrem ely useful in m eeting the ex
tra o rd in a ry dem ands m ade on a bank
from its own custom er.
T
Well Diversified Securities
Yielding 4 . 8 5 to 7 .0 5 %
To Y ie ld
About
P rice
R a te
M a tu r ity
6 /4
19 40
Market 6-73 7°
Associated Simmons Hardware
Companies, Secured G old Notes 6>4
19 3 3
Market 7 - ° 57°
N a m e o f S ec u rity
North American Cement Corpora
tion, S. F . Gold Debentures,
Series A
Illinois Central Railroad Company
Forty Tear Gold Bonds
1966
4%
9 6.50
4 -9 5 7 °
96
5.257°
G ulf States Utilities Company
First M ortgage and Refunding
Gold Bonds
Competing for Personal Loans
“In recent years, however, a new te n
dency has ap p a ren tly developed. Banks
are com peting fo r com mercial business
w ith each other, an d consequently w ith
com m ercial paper houses, more vigorously
th a n ever.
“A new school of younger bank men
is grow ing up, am ong whom there are
some who, unaw are of the lessons of 1907,
1914 and 1920, close th e ir eyes to the ad
vantage of investing p a r t of th e ir funds
in outside com mercial paper, w here no
obligation to renew is involved, and p re
fe r tending to th e ir own custom ers a t low
rates, failin g to adm it the pro p er fu n c
tio n of m arket p ap e r in the banking
system . So long as this tendency con
tinues— th a t is the urge to lend a t all
costs to the b an k ’s own custom ers, and
the fa ilu re to recognize the real function
of m arket paper, com mercial paper
houses will find it difficult to increase, as
they would be justified in doing, th eir
commission charges.
banks in the g rea t money centers will be
plagued, as they have been before, by
large lines g ran ted in tim es of money
ease. Then again the com mercial p ap e r
houses will b ring the fre e fu n d s of the
thousands of country banks to the money
centers, through the sale of commercial
paper, as was the case in 1920. Then
will come th e tim e w hen the com mercial
p ap er houses can again p roperly tak e u p
the discussion of more adequate re
m uneration fo r the service rendered by
them .”
ing, have reduced com mercial dem and to
a relativ ely low situ atio n . This com
m ittee feels certain, however, th a t the
p resen t situ atio n will grad u ally ad ju st it
self once more. W ith the grow th of the
coun try ’s business will come new en ter
prises and new requirem ents.
“W hen the country again faces an era
of risin g com modity prices, m erchants
w ill again buy ahead of requirem ents
and heavier inventories w ill be carried,
and g rad u ally com mercial dem and will
again m ake itse lf in sisten tly felt. Then
5
i
956
Kentucky Utilities Company
F irst M ortgage G old Bonds
Province of Alberta, Canada
Pennsylvania-Dixie Cement Cor
poration, Series “ A f Converti
ble , Cumulative P re fe rred Stock
5
19 6 1
97
5 .2 0 0/0
414
19 56
9 4.50
4 .8 5 %
7
99
7 .0 5 °Jo
6
97.50
6 .1 5 7 °
Tidewater Associated Oil Com
pany, Convertible , Cumulative
P referred Stock
Subj ect to prior sale and cha nge in price.
M itchell Hutchins w ill be glad to give you more
detailed information regarding these securities
either by correspondence or in personal interview.
J H
ik H
e fC
IL L IN O IS
M
itd im
M ERCHANTS
&
BANK
P
B U IL D IN G
Chicago
CORRESPONDENTS
•
•
OF
BOSTON
K I D D E R , P E A B O D Y & CO
• NEW YORK
•
•
■]
Situation Aggravated
OFFICERS
“ The situ atio n has been aggravated in
the p a s t y ea r or two fo r the reasons a l
read y referre d to. Im proved tra n s p o rta
tion facilities, resu ltin g in quick turnover
and low inventories—-working capital
supplied through debenture note o r bond
issues ra th e r th an through bank borrow
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
W. EDW IN STANLEY, PRESIDENT
JA M E S C. H U T C H IN S, VICE P R E SID E N T
W I L L I A M H . M I T C H E L L , SE CRETA RY
RO B ER T A. G A R D N E R , T R E A S U R E R
48
THE
NORTHWESTERN
BANKER
Report of Government and Farm
Loan Bonds Committee
H E R E have been no developm ents
in regard to governm ent issues
which have required any action on
the p a rt of your com mittee. The tre a s
u ry ’s refu n d in g operations have been ca r
ried out, in our opinion, w ith consum
m ate skill and it is understood th a t com
prehensive plans have been perfected for
ta k in g care of the T hird L iberty Loan
on or before m a tu rity in 1928.
B oth the F ed eral and J o in t Stock L and
T
Banks have continued during the p ast
y ea r th e ir steady grow th and have, as
heretofore, provided the farm er w ith
needed fu n d s u n d er the highly desirable
long-tim e repaym ent plan a t low in te rest
rates.
The F ed eral L and Banks loaned to the
farm ers during the eight m onths to Sep
tem ber 1, 1926, $87,087,120, m aking 24,526 loans an average of about $3600.
The various J o in t Stock L and Banks d u r
A N e w Booklet—
“ CORPORATE BUILDING
BONDS“
T H I S is the first com prehensive booklet de
scribing this class of securities. It was
originally prepared for banks and investm ent
bankers for the inform ation of their sales or
ganization.
T he enthusiastic reception of this booklet on
the part of bankers and dealers has led us to
prepare a new edition for individual investors.
In this booklet investors will find information
not readily obtainable from any other source—
inform ation w hich offers a dependable guide
in the selection of sound building bonds.
Copies on req u est w ith o u t o b lig a tio n .
P.W. CHAPMAN &CO.,INC
CHICAGO
NEW YORK
170 W. M onroe St.
42 Cedar S treet
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
November, 1926
ing the same period m ade 14,126 loans,
aggregating $88,362,823, an average of
about $6,300.
N et M ortgage Loans
The n et m ortgage loans o u tstan d in g on
December 31, 1925, w e re :
F ed era l L and B a n k s...........$1,005,684,816
Jo in t Stock L and B a n k s ..
545,559,200
D uring 1926, fo r th e first tim e since
the banks w ere organized, the F ed eral
L and B anks were able to sell 4^4 per cent
bonds, replacing w ith a p a rt of the issue
approxim ately $40,000,000 4 ^ per cent
bonds held by the T reasury D epartm ent.
Through th is operation the banks m ade a
saving o f about $ 100,000 p er annum .
I t is in te restin g to note th a t of the ap
proxim ately $9,000,000 cap ital stock of
the F ed eral L and Banks originally owned
by the governm ent, all b u t $1,058,885 has
been retire d , and of the p resen t capital
stock of th e F ed eral L and Banks o u t
standing, am ounting to over $56,200,000,
over $55,000,000 is owned by th e borrow
ers.
Y our com m ittee have k ep t in touch
w ith the F ed era l F arm L oan B ureau and
have urged the issuance of F ed eral bonds
in consolidated fo rm b u t plans have not
y et been p erfected fo r such issue.
The m ark et fo r F ed eral L and Bank
bonds has fo r the p a st y ea r experienced
an upw ard m ovem ent follow ing closely
general conditions and being affected also
by the increasing dem and fo r this class
security.
The m ark et fo r the Jo in t Stock L and
B ank obligations did not enjoy during
th a t period the same p ro p o rtio n ate im
provem ent as did th a t of the F ed eral
L and B anks or o th er tax-exem pt securi
ties, the reason fo r this being indirectly
a ttrib u ta b le a t least in p a rt to the posi
tion tak en by the F arm Loan B oard last
November in its ru lin g in reg ard to the
paym ent of dividends by J o in t Stock
Banks.
The ru lin g provided in p a r t:
“ The B oard w ill not approve the p ay
m ent of any dividend by any bank unless :
(a) The U ndivided P rofit Account, ex
clusive of prem ium s on sales of bonds
and stocks, and legal reserve req u ire
m ents, shall show a balance sufficient to
p ay the dividend;
(b) The paym ent of dividends shall
not reduce th e account available fo r
dividends below the am ount a t which
real estate acquired th ro u g h foreclosure
or by deeds from borrow ers is carried on
the books of the bank as an asset, p ro
vided, however, th a t in case the bank has
reserves sufficiently in excess of legal
requirem ents to absorb th is real estate,
th is provision m ay be w aived.”
Because of th e above requirem ent the
dividend position of several of the J o in t
Stock Banks became questioned, re su lt
ing in a m aterially reduced m ark et value
fo r the stock of these p a rtic u la r banks
which condition was reflected to a lesser
November, 1926
THE
degree in the m ark et value of the stock
of other banks as well.
Strong Reaction
This condition reacted som ew hat on
the m arket fo r the bonds of. the various
banks to the extent, a t least, th a t the
m a rk e t fo r them did n o t experience the
same upw ard m ovem ent as th a t f o r other
tax-exem pt obligations.
L a te r on the B oard decided th a t the
restric tio n it had laid down in this ruling
was unduly strin g en t. C learly th ere is
rea l value in the p ro p erty tak en over by
the various banks and it is reasonable
to allow it to be carried as an asset. The
B oard accordingly modified the ruling,
issuing la st Ju n e new regulations which
in re fe rrin g to “real estate acquired” pro
vides in p a r t :
“I f land is acquired by a land bank in
sa tisfac tio n of m ortgage debts eith er by
deed or by purchase a t sales un d er ju d g
m ents, decrees of m ortgages, all m ortgage
accum ulations such as delinquent am or
tizatio n paym ents, in terest, taxes, fo re
closure and other expenses incident to
such acquirem ent m ay be included in the
book value a t w hich the acquired land
is taken into account. I f land th u s ac
quired is not disposed of w ithin six
m onths, there shall be charged to ea rn
ings o f th e cu rren t sem iannual period
and credited to “Reserve fo r D eprecia
tion on R eal E sta te ” the am ount this book
value exceeds the u n paid principal of the
loan, and the land so acquired shall then
be appraised a t the ban k ’s expense by an
appraiser, or ap p raisers designated by
the F a rm Loan Board, or by a review ing
appraiser, or ap p raisers designatedb y
the F arm Loan B oard, or by a review ing
appraiser, and m ay be carried th e re a fte r
as an asset a t the new appraised value
but in no event to exceed the prin cip al of
the original loan. Subsequent appraisals
and adju stm en t of the book value m ay be
ordered by the F arm Loan B oard.”
Charged-Off Property
F rom the above it will be observed th a t
it is not now necessary to charge off the
value of p ro p erty tak en over through
foreclosure or other procedure or to set
up an equivalent cash position before
paying dividends. I t will be noted th a t
the new reg ulation does require re a p
p raisals of such p ro p erty and the charg
ing off of any re su lta n t reduction in
value.
F ed era l and J o in t Stock L and Banks
were form erly required to replace as
collateral security behind the bonds any
loans w ith installm ent paym ents delin
quent over ninety days.
The B oard in its ru lin g of la st June
provides w ith respect to delinquent in
stallm ents as fo llo w s:
“B efore any instalm ent on any m o rt
gage pledged w ith any fa rm loan regis
tr a r as security fo r an issue of F arm
Loan Bonds shall become ninety days
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
NORTHWESTERN
49
BANKER
p ast due, it shall be the d uty of the de
positin g b ank to carry such in stalm en t
to its suspense account and ce rtify such
action to the re g istra r, and if such cer
tificate is n ot received w ithin such period,
the re g istra r w ill declare such m ortgage
ineligible and call upon the bank fo r a d
ditional security.”
W hile th e fo rm er requirem ent was
from th e bondholders’ stan d p o in t the
m ore desirable of the two, the B oard con
sidered the change desirable and so ruled.
I t is our u n d erstan d in g th a t m any of the
banks will in ad d itio n to placing the
am ount of such delinquent instalm ents
in a suspense account, continue to follow
the fo rm er p ractice of replacing such de
linquent loans w ith fre sh collateral to
secure its bonds.
In the p ast, the banks w ere a t lib erty
to consider prem ium s received on the
sale of th e ir bonds as v irtu a lly free earn
ings. The p resen t regulation provides in
this re s p e c t:
“I f bonds are sold a t a prem ium , the
n et am ount received in excess of the p a r
value of each issue shall be carried to an
account styled ‘Prem ium on bonds— de
fe rre d income,’ and shall be d istrib u ted
m onthly as an earning over the callable
period of each bond issue.”
Universal Gypsum &Litne Co.
First Mortgage, Sinking Fund
(Closed Mortgage)
Gold
6
%
Bonds
Due September 1, 1946
The Universal Gypsum &c Lime Co., the second
largest company in its line, manufactures and
distributes a complete line of gypsum and lime
products. W ith properties located in Iowa, New
York, Texas, Pennsylvania, and Virginia, the
company is in a strategic position to serve well
the entire country east of the Rocky Mountains.
These bonds represent the company’s only
funded debt and are secured by a direct first
(closed) mortgage on all of the fixed assets of
the corporation, excepting certain minor equip
ment located at the plant in Pennsylvania.
Total net assets less reserves and exclusive of
good will and other intangibles as of June 30,
1926, were equivalent to over $4100 on each
$1000 bond.
The company has operated at a profit since its
organization in 1922 and for the year ending
December 31, 1925, the combined properties
reported earnings of over 4 times the maximum
annual bond interest charges. A strong sinking
fund provision is designed to retire all of these
bonds at or before maturity.
Price: 9 6 and Interest
T o Y ield about 6.35%
231 S. LA SALLE ST.
BOSTON
CHICAGO
PHONE, CENTRAL 6556
CEDAR RAPIDS
50
THE
NORTHWESTERN
BANKER
W h y the Farmers Favor the Federal
Land Banks
By Robert J. Koeppe
P resident, Koeppe, L angston, L oper & Co., Chicago
E H A V E all heard during the
p a st few years the discouraging
situ atio n confronting agricul
tu re. W e have also had rep o rts th a t
thousands of farm ers have le ft th e ir
farm s in the la st five years. W e have
listened also to the pleas of farm leaders
fo r various form s of so-called relief leg
W
islation. All of these things we have in
te rp re te d as outw ard indications of a
critical condition existing today in the
farm in g in d u stry . B u t let it be rem em
bered th a t from the beginning of history,
agricultu re has been th e fo u n d atio n of
the w orld’s business.
A gricu ltu re cannot go into b ankruptcy.
C u sto m er
Value
H E relative im portance
of custom ers to an in
vestm ent house g o v
erns to som e extent the degree
of service the house is able to
render.
T h e high regard
in w hich this house holds its
custom ers is reflected in the
intimate service we perform
for them . (( T he interests of
our custom ers govern our p u r
chase of securities, and our
recom m endations a re influ
enced by our desire to con
serve their financial welfare.
(( P erhaps this policy accounts
for the increase in the n u m
ber of our custom ers and the
increase of 600 per cent in
our business during the last
five years.
BARTLETT & G O RD O N
IN C O R P O R A T E D
First National Bank Building, Chicago
First Wisconsin National Bank Building, Milwaukee
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
November, 1926
E ditor’s N ote: This is the second of a
series of three articles giving details of
the history, organization, and m ethods
of operation of the Joint Stock Land
Banks. A nother article will follow in
our December issue.
iiiiiiiiiiiiiiilirMiiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiitiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii*
The w orld m ust have food and clothes
and m ust of necessity p ay th e farm er a
living wage. B e tte r resu lts will follow
the ap plication of m odern science to th e
p ractice of ag ricu ltu re, and th e building:
up in ru ra l com m unities of a dom estic
and social life will enable the farm er a n d
his fam ily to w ith stan d the grow ing a t
tractio n s of the m odern city.
F arm in g M ust Be Profitable
W e need farm ers in A m erica; fa rm ers
of the rig h t ty p e ; farm ers who know th a t
it is not ju s t m erely a m a tte r of raisingcrops, b u t who ap p reciate the fa c t th a t
farm in g is a business w ith a g rea t m an y
economic facto rs.
The fa rm e r today has had his problem s
p a rtia lly solved as to carry in g crops a f te r
the harvest. In stea d of dum ping all h is
products on the low fa ll m ark et in o rd er
to p ay off his obligations, he has been
able to sell throughout the year, th u s
availing him self of b e tte r prices. T his
has become possible through cooperative
associations, m any of which have form ed
cred it corporations to fu rn ish th e ir mem
bers w ith m ark etin g credit, as well as
grow ing credit. This has tended to rec
tify the situ atio n w hereby the co u n try
b an k er loaned money to the farm er to
ca rry him through the grow ing period,,
b u t neglected to provide credit fo r th e
m ark etin g period, which has cost th e
A m erican fa rm e r m illions of dollars in
the past.
F arm ers likew ise are realizing th e
benefit of the loans made through th e
land banks. These loans are m ade to ru n
th irty -th re e years, a t an in te rest ra te not.
to exceed six per cent, and payable in
small y early am ounts as to p rin cip al and
in terest, and have relieved countless
farm ers of the old ty p e sh o rt term first
m ortgage loans.
A ccording to the la st census the v alue
of all farm p ro p erty in the U nited Stateswas placed a t $78,000,000,000. The to ta l
fa rm indebtedness is estim ated a t only
$ 8 ,000 ,000 ,000 , or about tw elve p er ce n t
of the physical valuation. F arm in g is
by f a r the m ightiest in d u stry in A m erica.
The railro ad s w ith a to ta l v aluation o f
$19,000,000,000 are a very obvious sec
ond.
D iversification Aid to F arm er
M ay we p o in t out as an example th e
sta te of Colorado, which, because of di
v ersity of products assures its fa rm e rs
sa tisfac to ry rem uneration.
The sugar beet in d u stry of Colorado,
which is its p rin cip al farm product, is
November, 1926
THE
one of the few crops contracted fo r a t a
definite price before the planting, and
th e fa rm e r knows in advance w hat price
he will actually receive p er ton.
Colorado is n ationally know n fo r its
potatoes, and is also equally well know n
fo r its melons, lettuce, celery and fru its.
L ast y ea r this sta te produced more
beans th an any other.
A lfa lfa is also one of the leading crops,
and is second in im portance, being next
to the sugar beet industry. The average
crop of a lfa lfa p er season p er acre is not
less th a n th ree tons, and the average
value in the stack is ten dollars per ton,
m aking a yield of a t least $30 per acre.
The am ount of labor required is much
less th a n in any other crop, and in ad d i
tio n to this a lfa lfa stores nitrogen in the
soil, thereby saving the expense of buy
ing fertilize r, w hile a t the same tim e
providing a very lucrative retu rn .
All kinds of sm all grains are produced
and sufficient corn is raised, to gether
w ith the alfa lfa, fo r hog pastu re. Hogs
are becoming one of the leading livestock
in dustries and hog cholera is p ractically
unknow n there.
This sta te is also know n as the leading
sheep center of the U nited S tates.
E njoys E nviable Record
The officers and directors of the D en
ver Jo in t Stock L and B ank have had wide
experience in the banking and farm m o rt
gage business, and are thoroughly con
v ersa n t w ith fa rm m anagem ent and land
values in the b an k ’s te rrito ry .
The m anagem ent’s conservatism and
capability is reflected by the fa c t th a t
th e ir la test statem ent shows them to be
one of the few banks in the system w ith
no real estate acquired through foreclos
ure.
The bank has enjoyed su b stan tial and
steady grow th and hasi ncreased its capi
NORTHWESTERN
51
BANKER
A verage A ppraised V alue
28.21
p er A c re ..............................
A verage A m ount Loaned
per A c re ..............................
9.18
R atio of Total A m ount
Loaned
to
A ppraised
V a l u e ...................................
32%
The D enver B ank has alw ays employed
able and successful app raisers and the
foregoing statem en t reflects this fact.
Its officers and directors a r e : M r. C. L.
B eatty, p resid e n t; P. J . Quealy, vice
p resid e n t; Osmer Sm ith, se creta ry ; H.
R. W eston, tre a su re r; O liver H . Shoup,
the fo rm er governor of Colorado, Jam es
Q. N ew ton and W. E. B arkley, who is
p resid en t of the Lincoln J o in t Stock L and
B ank of Lincoln, N ebraska, one of the
finest in stitu tio n s in the northw est.
ta l and surplus by $633,563 d uring the
p a st fo u rteen m onths. Shareholders have
received 8 p er cent p er annum since De
cember 31, 1923.
The D enver B ank is the only Jo in t
Stock L and B ank o p eratin g in Colorado
and W yom ing.
Mr. C. L. B eatty , p resid en t of th is in
stitu tio n , subm itted the follow ing figures,
which are an analysis of th e ir loans as
of A ugust 31, 1926 :
T otal Loans 1945...............$13,426,300.00
A ppraised V alue of F arm
M ortgages
................... 41,260,170.00
A verage A m ount Loaned
p er F a r m ............................
6,902.97
A verage N um ber of A cres
per F a r m ............................
751
Total A cres M o rtg a g e d ...
1,462,218
A Noteworthy
Achievement
From a small beginning to a national organization
and w ith an international clientele is a notable
achievement. But more noteworthy still is the con
tinuous patronage w hich this Company enjoys
from its old customers—indicative of the confi
dence and satisfaction in the securities they have
purchased, and the service rendered them by this
old responsible house. W rite for current circular.
A merican B ond & M ortgage Go
Established 1904
Capital and surplus over $ 8 , 5 0 0 , 0 0 0
IO W A
O FFIC ES:
C H IC A G O
In c o rp o ra te d
DA V EN PO RT
D E S M O IN E S
C ED A R R A P ID S
O ver 35
o th e r c itie s .
N EW YORK
Lawrence Stern and Company
231 S outh LaSalle Street • Chicago
BOARD
Emery,
Peck ÔC Rockwood
Investment Securities
OF D IR E C T O R S
C H A R L E S A. M cCU LLO CH , P r e s i
d e n t of T he P a rm e le e C om pany
JO H N H E R T Z , C h airm a n of th e
B oard of Yellow T ru ck & Coach
M a n u fa c tu rin g Co.
H E R B E R T L. ST E R N , P re s id e n t of
B alab an & K atz C orp o ratio n
A L F R E D E T T L IN G E R , V ice P re s i
dent
J O S E P H J . R IC E , V ice P re s id e n t
L A W R E N C E ST E R N , P re sid e n t
W IL L IA M W R IG L E Y J R ., C h airm a n
of th e B oard of W illiam W rig ley J r .,
Com pany.
JO H N K TH O M PSO N , C h airm a n of
th e B oard of J o h n R. Thom pson
C om pany
A L B E R T D. L A S K E R , C h airm a n of
th e B oard L o rd a n d Thom as an d
L ogan
ST U Y V E SA N T PE A B O D Y , P re s id e n t
of P eabody Coal C om pany
&
Continental and Commercial
Bank Building - CHICAGO
Milwaukee • Railway Exch. Bldg.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
T h is com pany conducts a general securities business, originating
and participating in high-grade investm ent issues and devoting
special atten tion to first mortgage real estate b on d s
52
THE
NORTHWESTERN
BANKER
Hold Annual Picnic
Bank
Investm ents
Cities Service C o m
pany Securities and
the Henry L. Doherty
& Company General
Securities of f er i ngs
show a varied list of
s o u n cl bank invest
ments.
If you do not receive
our Bond and Note
Listings regularly, we
will be pleased to place
your name on our
weekly mailing list.
The sixth annual picnic of the W hiteP h illips Company, In v estm en t B ankers,
D avenport, Iowa, was held recently at
the D avenport C ountry Club.
The picnic was the m ost enjoyable of
any held d u ring the nine years th is com
pany has been in business. A b eau tifu l
day, and the atten d an ce of all employes
and firm members aided g rea tly in m ak
ing th e affair a com plete success. Golf,
in the fo rm of a B lind Bogey T o u rn a
ment, b rought fo rth num erous co n test
ants, and even though a num ber of the
cards tu rn ed in contained figures re
sem bling th e n atio n al w ar debt, all of
the players enjoyed them selves to th e
fu lle st extent. F o rtu n e seemed to have
overlooked the fa c t th a t the tou rn am en t
was fo r the poorest as well as the best
golfer, as she saw fit to aw ard the silver
loving cup to S. A. Beck, Avho also had
the low est m edal score as well as the
loAvest num ber of p u tts.
Games and contests of various kinds
made things in te restin g p rio r to th e d in
ner hour. D inner was served to fo rty six persons, and d uring the dinner hour
“D addy” W hite and B lair A. P hillips
spoke a feAV Avords of com m endation. A
few words were also spoken by C arl
Mulch, m anager of th e Chicago branch,
an office ju st recently opened.
The a fte r-d in n e r hours Avere sp en t in
dancing and bridge playing. D uring a
sho rt interm ission, M rs. W a lte r Lohm iller of D avenport, accom panied by
Mrs. C arl Mulch, rendered several beau
tifu l vocal selections.
D uring the nine years of its existence,
the W h ite-P h illip s Com pany has grown
from an organization of th ree in d iv id
November, 1926
uals to one of fo rty persons, having
offices in D avenport, Des Moines, and
Dubuque, IoAva; Omaha, N ebraska, and
Chicago, Illinois.
New Bond Issue
Taylor, E w a rt & Company, Inc., and
Spencer T rask & Company, are heading
a syndicate which w ill shortly offer $ 2 ,700,000 M anchester T erm inal C orpora
tio n (H ouston, Texas) first m ortgage
e y 2 p er cent sinking fu n d gold bonds,
series “A.” The bonds m atu re October
1, 1941, and will be offered a t 100 and in
te re st to yield 6-50 p er cent. The M an
chester Term inal C orporation will own
and operate the larg est cotton w arehouse
and compress in th e H ouston d istric t and
w ill not own, buy or sell any cotton b ut
will handle, store and com press it fo r
shippers and growers, charging fo r these
essential service fees, which are p aid be
fo re th e cotton is delivered from the
term inal. The corporation owns in fee
70 acres of land, excellently situ ate d on
the south bank of the H ouston S hip Chan
nel, a t its ju n ctio n w ith Sims Bayou.
H ere the corporation is erecting a m od
ern cotton w arehouse o f 200,000 bales ca
p acity and possessing excellent shipping
facilities. These bonds w ill be secured,
in the opinion o f counsel, by a d irec t first
m ortgage on th e en tire p ro p erty of the
corporation, having a land ap p ra isal of
$840,000, w ith a replacem ent value on
buildings and equipm ent of $4,077,600.
Privileged Bonds
In v esto rs freq u en tly find convertible
bonds and bonds Avith Avarrants, en ti
tlin g the holder to purchase stock a t some
specified price, difficult to analyze. Con-
I
Write any of the
follozving offices
S E C U R IT IE S D E P A R T M E N T
H e n r ^ S ^ h e r ty
' & C o i i T p b tr iy
(6 0 W A LL. ST>V----------W N E W YORK,
©RANCHES IN
CITIES
IO W A D I V I S I O N A L O F F I C E S
For Y our
S e c o n d a ry R e s e rv e
A re you looking for some good investm ents to carry for a
secondary reserve? You can m ake no b e tte r selection th an
Illinois Special Improvement Bonds
Bonds of this type are tax-exem pt, and are p ro p er invest
m ents for N ational, State and Savings banks.
D es M oines
318 L ib erty B uild ing
Write for Particulars
Sioux C ity
507 F rancis B uild ing
H. I. Foskett
Cedar B apids
1129 M erchants N ation al Bank
D avenport
721 F irst N ation al B ank B uild ing
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
BONDS
SHENANDOAH
IOWA
November, 1926
THE
NORTHWESTERN
elusions from a recent study of issues of
this type m ay be of interest.
D uring 1925 there were brought out 35
convertible or w a rra n t issues. A t the
tim e the study was made, only ten of
them , or 28.5 per cent, were selling above
th e ir original offering prices. Of the 35
issues, 16 were each of m ore th a n $5,000,000, prin cip al am ount. Six of these, or
37.5 p er cent, Avere selling above the offer
ing price. E ig h t of the issues were each
of m ore th a n $ 1 0 ,000,000 and of these
fo u r issues, or 50 p e r cent, showed a profit
to the original purchasers. I t is adm itted
th a t this com parison m ay not offer a tru e
p icture due to the recency of some of the
issues. H ow ever, during the period since
these bonds were sold, there has been a
generally risin g m arket.
A conversion privilege is a speculative
fe a tu re th a t m ust be p aid for. In analyz
ing bonds of this type, it is wise to assure
oneself in the first place th a t the bond i t
self is Avell secured and, secondly, th a t
too much is not asked fo r the conversion
privilege or w arran ts. The la tte r implies
an ap p raisal of the stock obtainable and
its possibilities. The cost of the conver
sion featu re m ay be arrived at by com
p arin g the price of the bond carry in g the
conversion privilege, w ith a like security
without such feature.— From B ond B riefs,
N orthern T rust Co., Chicago.
53
BANKER
E arn in g
and
H oldin g
T h e C on fid en ce o f In vestors
fo r forty-on e years
The H ouse of Forman has earned and h eld
the confidence of investors for forty-one
years because of steadfast adherence to a
strong and conservative policy.
And in those forty-one years no investor—
not one— has ever failed to receive every
dollar of his prinicpal and interest.
Correspondence is invited from bankers
who might be interested in a profitable
affiliation for the distribution of these
time-tested securities.
SrC om pany *
George M.Form an
In vestm en t B onds since 1885
E Q U IT A B LE BLDG., D E S M OINES, IOW A
Chicago
N ew York
P ittsb u rgh
St. L ouis M inneapolis
San Francisco
Indian apolis
Springfield, 111.
P eoria
L exington, K y.
L ife is sho rt and the a r t is long
ONE YEAR M ATURITY
TW O YEAR M ATURITY
YIELDING
YIELDING
5.50%
6.00%
C entral States P o w er & L igh t C orporation
5 *A % G O L D N O T E S
$250,000 due Septem ber 1, 1927
$250,000 due Septem ber 1, 1928
Y early earnings after deducting all p rio r charges am ount to $341,843
against interest charges on these Notes of only $27,500. 95% of the Com
p an y ’s business is derived from the sale of electricity.
We recom m end the Notes as a short term investm ent m odeled to suit
the needs of B ank funds.
Send for circular giving full description
V C S 'ï E R *
■çR
Q U A IL E C U N û y .
w
BONDS FOR INVESTMENT
F irs t N atio n al B ank Bldg.
DAVENPORT, IOWA
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
29 S o u th La Salle S t
CHICAGO
54
THE
NORTHWESTERN
BANKER
November, 1926
Stolen Bond Recovered
A Complete Investment Service
C om m ercial P a p er a n d B o n d s
V ^ .V .V V .V .V .V .V V .V .V .V .V .V V .V
Clients of this firm are able to
obtain f r o m o n e so u rc e the type
of security best suited to their
current condition and need.
\V A V .V .V W ., .V , ,V ., .V .V .V .V .,.W
LANE, R O LO SO N & CO., Inc.
209 South La Salle Street, Chicago
LANE, PIPER & JAFFRAY, Inc.
M in n e a p o lis
S t. P a u l
R o ch ester
M a n k a to
W e offer th e fo llo w in g Jo in t S tock
L a n d B a n k Stocks
200
200
100
100
200
shares
shares
shares
shares
shares
< * ' Kansas City
* * * Chicago
* * * Dallas
* * * Lincoln
* * * D enver
Koeppe, Langston, Loper & Co.
39 South La Salle Street
CHICAGO
SPECIALISTS IN JO IN T STOCK LAND BANK SECURITIES
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
F argo
To recover a $1,000 F u n d in g Bond of
S cott county, Iowa, was the recent ex
perience of the W h ite-P h illip s Company,
Investm ent B ankers, of D avenport.
The bond was stolen in November of
1921 from th e U nited S tates mail, in th e
big U nion sta tio n robbery at Chicago,
to g eth er w ith a bond of Iow a county, in
a robbery involving $ 1 ,000 ,0 0 0 .
The bond of Iow a county was recov
ered shortly a fte r the robbery, having
been throw n in a rubbish heap w ith some
o th er papers which the thieves evidently
considered nonnegotiable.
The S cott county bond was given u p
fo r lost some tim e ago as none of th e
in te rest coupons attach ed th ereto had
been presented fo r paym ent a t the office
of the trea su rer, and the holders had
m ade no ap p a ren t effort to dispose of the
bond.
A duplicate bond was p rep ared and ex
ecuted by the county, u n d er the supervis
ion of the W hite-P hillips Company, and
the county was p ro tected ag ain st loss by
a su rety bond in o rd er th a t the legitim ate
p u rch aser m ight not suffer a loss of his
money.
One of the thieves, nam ed H ym an, was
apprehended and pending his tria l, com
m itted suicide. Among his personal ef
fects, th ere was discovered the S co tt
county bond, w ith all of th e in te rest coupons in tact.
Although the bond had a value of over
$ 1,000 in the financial m arket, fe a r of ap
prehension prevented the holder from a t
tem p tin g to dispose of it, or even m aking
any attem p t to cash the semiannual cou
pons— alm ost all of w hich had become
due.
In a leg itim ate tran sa ctio n a bond, if
not registered, is negotiable by sale or
tra n sfe r. In v esto rs as a rule deal w ith
legitim ate investm ent bankers and have
a confidence in w hat they purchase. The
close relation between the financial
houses makes it almost impossible fo r a
stolen bond to get into circulation, as th e
in te rest and p rin cip al are payable a t a
specific place and a t a definite tim e. W hen
th e bond or the in te rest coupons are p re
sented a t any b ank or investm ent b an k
ing house fo r paym ent, th ey are, as a
rule, entered fo r collection, and th e
holder receives the funds a f te r the bonds
and coupons have been sent to the place
of paym ent specified th erein and have
been rem itted fo r. W henever bonds are
lost o r stolen, a notice is im m ediately
sent to th e p o in t w here the in te rest and
p rin cip al are payable and should th e
holder of the bond ever attem p t to obtain
cash on his security, paym ent would be
refused.
The nations seem more inclined to p la n t
than to bury hatchets.— N orfolk VirginianPilot.
November, 1926
THE
NORTHWESTERN
55
BANKER
A Correction
On page 83, of the O ctober issue of
T h e N orthwestern B anker , in the a rti
cle describing the new offices of the W . D.
H an n a Company, of B urlington, Iow a, it
was sta te d th a t one of the several branch
offices of the com pany is a t W aterloo,
Iowa, w ith Leo M ak and Leslie H.
Schrubbe as m anagers. This should have
read, “w ith Leo M ak as m anager and
Leslie H. Schrubbe salesman.”
The
N orthwestern B anker is h appy to make
th is correction.
Appointed Trustee
The F orem an T ru st & Savings Bank,
Chicago, has been appointed tru ste e in
Chicago’s riv er-straig h te n in g plan, a
p ro ject involving the expenditure of close
to $14,000,000. The scheme calls fo r the
digging of a new channel betw een Polk
and S ixteenth stree ts to elim inate the
present wide bend which swings tow ard
the east.
I t becomes necessary fo r p ro p erty
ow ners in the p a th of the new7 channel,
chiefly railro ad s, to sell th e ir in terests
to the F orem an T ru st & Savings Bank,
tru stee, a t a to ta l of $8,915,480, and they
will in tu rn buy holdings fo r a to tal of
$13,983,666.
I t is also thought th a t this plan m arks
the first step in an ultim ate outlay of
betw een $300,000,000 and $400,000,000
w hich will consolidate the D earborn, L a
Salle and G rand C entral statio n s into a
m onster railro a d term inal and the open
ing up of the south end of the loop.
Offers Second Issue
The Illinois M erchants T ru st Company
offered la st m onth a second $ 2 ,000,000
issue of first rea l estate m ortgage collat
eral tru s t bonds, due in 1936. The re
ception of the first issue of like am ount
was such, however, th a t the p resent of
fe rin g is a t a price to yield 5.25 per cent
while the in itia l block was brought out on
a 5.50 basis. The first issue was sold
w ithin tw en ty -fo u r hours, according to
officials of th e com pany, and the new
type of security is practically assured
of a perm anent place am ong the Illinois
M erchants’ investm ent offerings. These
collateral tr u s t bonds are secured by p a r
am ount of m ortgages purchased by the
Illinois M erchants from the Chicago T itle
and T ru st Company and held in tru st
by the la tte r, and also by an additional
10 p er cent of the p a r am ount in m o rt
gages pledged by Chicago T itle from its
own holdings. I t is provided in the tru s t
agreem ent th a t th e m ortgages m ust not
be fo r more th a n 60 per cent of the Chi
cago T itle and T ru st’s ap p ra isal and th a t
they m ust be legal fo r the investm ent of
tr u s t funds under the Illinois sta tu tes.
Three removes are as bad as a fire.—
F ran k lin .
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
T he Bankers Bond House
S p ecializin g in bo n d s for b a n k in v e stm e n t.
C u rre n t re c o m m e n d a tio n s s e n t
u p o n re q u e st.
W. D. HANNA & COMPANY
(Successors to Hanna-Shreves Co.)
B u r lin g to n , Iowa
Waterloo
M uscatine
Lincoln
'“T H E P E R F E C T B O N D
A if such a thing existed, w ould
m eet all th e investm ent needs o f all
types o f investors. B ut these needs
vary so widely th at m any different
kinds o f bonds are required to fill
them . Each b o n d has its d o m in an t
quality w hich may be extrem e secur
ity, m arketability, high yield, stabih
ity o f price, chance o f appreciation
in value, or some o th er special fea
tu re such as tax exem ption, com
vertibility into stock or redem ption
before due date. In short, th e busi
ness o f giving investm ent service to
a large clientele requires an amply
diversified list o f offerings all of
w hich m easure up to sound basic
standards. W e invite inspection of
o u r facilities, offerings and service.
De W olf & C ompany, inc .
I n v e s tm e n t B o n d s
C H IC A G O
- E s ta b lis h e d 1 8 8 9
M IL W A U K E E
56
THE
NORTHWESTERN
BANKER
November, 1926
Business Increases
High Grade
Utilities
We recommend for sound investment
the following high grade utility bonds:
R ate
Kentucky U tilities Co. 1 st Mtg.
Florida Pw r. & Lt. Co. 1 st Mtg.
Iow aS outhernU til.C o.lstU R ef.
Indiana Power Co. 1 st & G en.
D ue
5s
5s
5 ^s
6|s
Yield
1 9 6 1 5 -20 %
1954 5-55%
19 5 0 5 -70 %
1941 6 .1 0 %
Circulars on Request
H
o
AGLAND, A
l
LUM
6
? fo .
E s ta b lis h e d 1 9 0 9 — In c o r p o r a te d
34 Pine St.
14 S. La Salle St.
C H IC A G O
N EW YORK
C arefully Selected
Investm ents
Price
Dewey Portland Cement Co. First Mtg. 6s,
due seriallv 1928 to 1942
100
Illinois Central Railroad
Debentures 4%s, 1966
96%
Sierra Pacific Electric Company
5% Notes, 1929
' __
99.73
Monmouth Consolidated Water Co.
First Mortgage 5s, 1956
95
Iowa Southern Utilities Company
First and Refunding 5%s, 1950
97^
Minnesota & Ontario Paper Company
First Mortgage 6s, 1945
9 9 /2
To Yield
About
6.00%
4.95%
5.10%
5.33%
5.70%
6.10 %
i
Chicago Trust Company
L U C IU S T E T E R
P r e s id e n t
JO H N W . O ’L EA R Y
V ic e P r e s id e n t
B on d D e p a r tm e n t
J . W . M A R SH A L L
V ic e P r e s id e n t
J . P . B U R L IN G H A M
M anager
CHICAGO
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
P o u r and a q u arte r m illion dollars in
crease in to ta l loans of the Lincoln Jo in t
L and B ank d u rin g the la st fiscal year,
which now aggregate $36,150,000, and a
fu rth e r increase in prospect during the
next six m onths th a t will push the vol
ume up beyond $40,000,000, was rep o rted
by P re sid en t W . E. B arkley of th a t in sti
tu tio n to its stockholders a t th e ir annual
m eeting and luncheon held recently in
the G rand H otel, Lincoln, N ebraska.
The bank, in fac t, made new loans of
6 % m illion dollars w ith the year, b u t its
borrow ers p aid off 2^4 m illions of th eir
obligation, leaving the n et grow th 4 ^
millions. N ebraska and Iow a are the
te rrito ry included in its field of opera
tions.
Several hundred thousand dollars ad
ditional cap ital stock was issued and sold,
bringing the to ta l up to $2,711,400. This
stock brought a considerable premium
above its face value, some of it being
sold to eastern investors and some sub
scribed locally.
The fed eral law perm its a jo in t stock
land bank to issue bonds to the am ount
of 15 tim es its cap ital stock. In the last
fiscal y ear th e Lincoln in stitu tio n issued
$4,500,000 of new bonds a t 4% p er cent.
The proceeds were used in p a rt to retire
$3,000,000 of o th er bonds bearing 5 p er
cent in terest. M ost of the bonds were
m arketed in the east.
A t the presen t tim e the Lincoln Jo in t
L and B ank holds fo u rth place in the
volume of its loans, am ong 70 such in sti
tutions doing business in the U nited
S tates. I ts securities are well know n in
all the large investm ent centers.
To Revise Nation’s Bank Laws
A plan of th e Jap an ese M inistry of
F inance f o r the revision of the banking
system of th a t country will be introduced
in the form of a bill a t the next session
of the D iet, according to a cabled dis
p atch received a t the D epartm ent of Com
merce fro m Tokio.
The plan included regulations fo r a
m inim um cap italizatio n of 1 ,000,000 yen
fo r com mercial banks, the restric tio n of
loans to one individual or firm of 10 p er
cent of the p aid up capital of the seeker
of the loan; and the com pulsory addition
of 10 p e r cent of profits to the reserve
fund, as com pared w ith the 5 p er cent re
quired u n d er the p resen t banking law.
The plan also included regulations fo r
a lim ited am ount of banking supervision
by the Jap an ese F inance D epartm ent, the
cable states.
We’ve Used It
“W h at k ind of golf ball have you been
u sin g ?” asked the salesm an.
“I ’ve fo rg o tten the nam e,” adm itted
Mr. D ub, “b u t it ’s the one you lose
easily.”
November, 1926
THE
NORTHWESTERN
57
BANKER
CHARTING BUSINESS CONDITIONS
IN BOHUNCUS
(C ontinued fro m page 19)
the same level as a year ago. None was
produced in October, none in September,
and none last year, but nobody seems to
care, as they are all w earing silk ones,
anyway.
For Your Convenience
Tonsorial Conditions
Seasonal fluctuations are indicated in
our reports from the barber shop. W ith
the approach of cold weather, shavings
showed a norm al decline of 17 p er cent,
but the opening of the furnace season is
reflected by a considerable increase in num
ber and volume of shampoos. D uring the
month, fifty cents’ w orth of baths were
sold to a couple of traveling men, but lo
cal trade rem ains dull.
F o r th e convenience of its m any custom
ers, and fo r th e benefit of those who m ight
be in terested in th e p urchase of Foreign
Bonds fo r th e investm ent of bank funds;
B aker, Kellogg & Company, Inc., carefully
analyze th e financial situ atio n ex istin g in
foreign countries and p rep a re each m onth a
“ Review of Foreign A ffairs.”
T his review b rings to your desk a very
com prehensive and up-to-date re p o rt on
ag ric u ltu ral, in d u stria l and tra d e conditions
w ith th e ir b earin g on foreign issues being
offered in the A m erican m arket.
Catering Occupations
The Johnson Cafe reports th at it is
still serving meals a t thirty-five cents, un
changed from last month. The menu of
ham and eggs is also unchanged, although
we are reliably inform ed th a t the eggs,
since the unseasonably w arm w eather in
October, have changed quite a bit, and
th a t the ham is a mere shadow of its
form er self.
The “Monthly Review of Foreign A f
fairs’’ is mailed without charge to any
one interested, and does not obligate you
in any way. We would be glad to add
your name to our mailing list.
Fisheries
On account of the heavy fall rains, this
industry shows a considerable decline from
last month. Charlie A xtell took a quar
te r’s w orth of bait down to the river the
other day, and returned, by way of the
meat m arket, w ith a three-pound mack
erel. This is the first mackerel ever re
ported caught in local waters, although a
magazine salesman is reputed to have
caught a few suckers last week.
Metal Industries
Considerable hardening is reported in
the m etals; w ith the possible exception of
quicksilver, they are now firm, but inactive.
Iron and Steal.—-Increased activity in
Iro n and Steal was noted in October, one
of our field men repo rtin g th a t his ironing
last week was short 17 handkerchiefs, 8
collars, and l j /2 pajam as.
Automobiles.— There is some discrep
ancy in our reports of the m onth’s tu rn
over in the automobile field. Sam B arry
says he can’t get his F o rd to tu rn over at
all these cold mornings, while Lawrence
A born’s oldest boy was able last Tuesday
to make Lawrence’s new sedan tu rn over
three tim es on the river hill.
Unfilled Orders
BAKER, KELLOGG 6? CO.,
A
Inc.
SPECIALIZED SERVICE IN FO REIGN SE C U R IT IES FOR
BANKS and DEALERS
N E W Y O R K
Lo n d o n
111 West Monroe Street
Chicago
^
TELEPHONE RA N D OLPH 0415
DETROIT
b u e n o s a ir e s
REAL SERVICE
To serve our clients to their
entire satisfaction is our con"
stant aim and ambition.
Unfilled orders in October stood a t three,
all reported by the W iggins Cash Grocery.
In explanation of this item, the m anager
states th a t he will “be darned if he doesn’t
quit running a cash business if some of
these guys don’t come in and p ay some
thing on their bills.”
Stanley-H enderson Company
Summary
Farm Mortgage Bankers
There has never been a tim e like the
present fo r investing in Bohuncus indus
tries, and we hope there never will be
again. Subscribers are advised to pick up
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
I
207-214 Higley Bldg.
Cedar Rapids, Iowa
58
THE
NORTHWESTERN
BANKER
November, 1926
all the local properties they can afford to
carry, unless somebody is watching. A
decided boom is on the way, and will a r
rive not later than J u ly Fourth. Do not
be afraid of over-extension, if your p ro p
erty is in your w ife’s name. Do not hesi
tate, either, to borrow freely fo r local in
vestment ; sign someone else’s name to the
notes, if th a t w ill m ake you feel any
safer. M ortgage your hom e; you can find
somebody who will lend you more th an
it is w orth. Then, having done all this,
file your p etitio n in bankruptcy, buy a
new car and a few tax -free bonds, and
make a new s ta rt in life.
N ote: The in fo rm atio n in this circu
lar, while we g u aran tee every w ord of it
to be true, is obtained from sources which
we consider absolutely unreliable, and
we w ouldn’t risk a dime on it. You can’t
collect a cent on us, anyw ay; we haven’t
any p ro p erty , and if we had any, it
w ouldn’t be in our name.
SIMPLICITY A FEATURE OF
WAREHOUSE RECEIPT
O u r C u rren t List
o f Securities
—of m unicipalities in various
central, w estern and southern
states will prove of unusual in
terest to every investor.
It of-
fers geographical diversity as
well as a w ide selection as to
purpose of issue.
SHORT AND LONG
MATURITIES. TAX
EXEMPTIONS
T h e B R oWwI C N
- G id Ä M KEA R
Co m pa ny
H IT A
NSAS
NcdRvyx
L. H. Davis, Resident Manager
526 L ib e r t y B u ild in g
DES M O IN ES
IOW A
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
(C ontinued fro m page 2 0 )
hibition of the refinem ents of the type
founder. I ts provisions are usually in
telligible only to the skilled lawyer, and
sometimes they are th e equivalent of an
o rien tal conundrum to him. The secur
ity, so-called, consists usually in the m ost
heterogeneous agglom eration of personal
p roperty. I t is no unusual th in g to find
the k itchen stove and th e prize bull in
cluded in the same category. I t covers
not only th a t which exists, b u t th a t which
m ay never exist. The confidence which
lending agencies, using th is form of se
curity, repose in it is exemplified in the
fa c t th a t, not being satisfied w ith specific
p ro p erty described, they freq u en tly a t
tem pt to cover everything the m ortgagor
has or m ay have h ereafter. Identifica
tion, which is a p rereq u isite of enforce
m ent is more often th an not impossible.
This heterogeneity is in itself the stro n g
est inducem ent to fra u d u le n t disposition.
The picture, if it could be conjured, of a
b an k er req u estin g a m ortgage upon the
bedroom fu rn itu re of a term in al eleva
to r man as security fo r a loan, should illusstra te the archaic ab su rd ity of the system
in its ap plication to any ow ner of grain.
A Negotiable Instrument
Long ago bankers and g rain operators
have learned to d istinguish and earm ark
stored g rain as a basis of credit. The
only m ixture of g rain w ith live stock is
in the n a tu ra l process of feeding. Conse
quently the g rain receipt has become one
of the m ost read ily negotiable in stru
m ents in existence. In this connection
the objection th a t g rain stored in a p u b
lic term in al elevator is a secu rity superior
to the same com modity stored on the farm
may as well be m et a t once w ith the cate
gorical statem en t th a t such is n ot the
fact. A nd I doubt th a t this will be chal
lenged by any well inform ed m em ber of
th e board of trade.
November, 1926
THE
A nother freq u en tly voiced objection is
th a t it induces holding of grain — a form
of speculation— and consequent loss to
the farm er. W hile the solicitude ex
pressed in this criticism is touching, its
fund am en tal fallacy exists in the fa c t
th a t it contem plates the farm er as a com
posite— a
palpable
absurdity.
The
banker does not deal w ith an apocryphal
conglom erate in the case of the farm er,
any more th a n he does in th a t of the h at
m a n u factu rer. B ut there is still another
false assum ption inherent in th is objec
tion— th a t the only farm er who will avail
him self of this form of credit is the one
who will ultim ately sell on the general
m arket. I t should be m anifest th a t the
g ra in receip t is even more adaptable to
the relations of feed er and banker. A
feeder w ith m ore th a n one crib or a
double crib may avail him self of the sys
tem while feeding a p a r t of his crop.
A nd it is a m a tte r of experience th a t dur
ing the la st fifteen years an average of
a t least 75 per cent of the carryover has
been ultim ately fed upon the farm s where
produced. A n illu stratio n of the careless
thin k in g th a t characterizes these u tte r
ances is found in the fa c t th a t a guess is
usually made a t the cost of fire insurance
an d charged against the in te rest rate,
when ord in ary business sagacity would
suggest its necessity in any event.
In respect of the hom ogeneity of g rain
when stored in bins or cribs it is m erely
necessary to in tim ate th a t id en tity is no
longer a difficulty. The question as to
w hether or not the cow th a t was struck
by lightning was the one m entioned in
th e m ortgage is irrelevant.
G rain Is Sealed
H ard ly m ore difficult is the considera
tio n of in teg rity . The grain is sealed and
preserved u n d er sta te au th o rity and su
pervision. I t is not necessary in order to
convict to show th a t disposition of the
p ro p e rty assigned was w ith fra u d u len t
in te n t. A ny tam p erin g is a crim e of i t
self, and the seal w ith its inscription is
a co nstant rem inder of th a t fact.
L et it be clearly understood th a t the
w riter m akes no charge or suggestion th a t
any individuals or class are dishonest, or
th a t th e g’ra in receip t is m erely a sa fe
gu ard against fra u d . I ts purpose is to
place in the hands of the individual
farm er a form of security, which the bank
m ay accept and against which he may
lend the money en tru sted to him w ith the
assurance th a t, if needed, the obligation
can be met, not in the m isty fu tu re or a t
the cost of irre p arab le loss to the cus
tom er, bu t a t m a tu rity w ithout serious in
convenience. I t is not a com plete solu
tion of the ag ric u ltu ral problem . I t is an
intelligent effort to enable the farm er to
ad a p t him self m easurably to the exigen
cies of the com mercial bank. In doing
so he becomes en titled to the same con
sideration as others who predicate th e ir
loans upon liquid assets.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
NORTHWESTERN
BANKER
J. B o ld t & C om pany
A .
PUTNAM
BUILDING
DAVENPORT
BO NDS FOR
C O N S E R V A T IV E
IN V E S T M E N T
G eneral Motors
Acceptance Corporation
Executive Offices:
2 5 0 W e st 5 7 th S tre e t, N e w Y o rk C ity
*HE obligations of this institution are select
ed as appropriate and sound m edium s for
short term investment by a large banking clientele.
They m ay be obtained in convenient denomina
tions and suitable maturities.
Z
D IR E C TO R S
Alfred H. Swayne,. .Chairman — Vice President, General
Motors Corporation
Curtis C. Cooper. . . President
Albert L. Deane. . . Vice President
Pierre S. duPont. . .Chairman, General Motors Corporation
and E. I. duPont de Nemours & Co.
Lammot duPont. . .Finance Committee, General Motors
Corporation.
0. H. P. LaFarge. .General Motors Corporation
Seward Prosser. . . .Chairman, Bankers Trust Company
New York
John J . Raskob. . . .C h a irm a n , F in a n ce C om m ittee,
General Motors Corporation
Alfred P. Sloan, Jr. President, General Motors Corporation
JohnJ.Schumann, Jr. Vice President
Donald M. Spaidal. Vice President
59
THE
60
NORTHWESTERN
BANKER
November, 1926
T E A M W O R K
—A D ecid ed A d v a n ta g e
—
T h e re is one th in g th a t is alw ay s v ita l to success —and that one
W ith o u t te a m w o rk little o f la stin g w o rth can
be accom plish ed . W h e th e r you a re p la y in g b a se b a ll, fig h tin g
u pon th e b a ttle fie ld or sellin g life in su ran ce, th e one com m on n e c
essary fa c to r fo r u ltim a te a n d la stin g success is team w o rk .
thing is cooperation.
W. K. W HITFIELD
President
DAVID W. HILL
Vice President
W. F. GRANTGES
V ice President and General
Manager A gents
In th e In te rn a tio n a l L ife o rg a n iz a tio n you w ill find m en w o rk in g
to g e th e r in m o st co m p lete h arm o n y . B etw een H om e Office a n d
b a n k e rs th e re exists a fe e lin g of m u tu a l u n d e rs ta n d in g a n d frie n d
liness th a t is of u n e stim a ta b le w o rth in m a k in g th e w o rk of sellin g
In te rn a tio n a l L ife in su ra n c e p le a s a n t a n d e n jo y a b le as w ell as
profitable.
A Company Willing To Pay The
Price Required To Give Service
International Life Insurance Co.
St. Louis, Missouri
Iow a b a n k e rs sh o u ld do b u sin ess w ith th is stro n g Iow a
com pany, w h ich h a s g a in e d a co u n try -w id e re p u ta tio n
as a “N a tio n a l In stitu tio n o f S erv ice.”
T h e F e d e ra l S u re ty C o m p an y is m a n a g e d by e x p e ri
en ced u n d e rw rite rs, a n d h a s fro m its co n cep tio n b u ilt
fo r S T R E N G T H r a th e r th a n size.
B ac k ed by F e d e ra l S ervice, th e se lines a re w ritte n —
A c c id e n t a n d H e a lth , A u to m o b ile, B u rg lary , P la te
G lass, P u b lic L ia b ility a n d W o rk m e n ’s C o m p en satio n
In su ra n c e , a n d S u rety B onds.
FE D E R A L SU R ETY C O M P A N Y
C A S U A L T Y IN S U R A N C E
S U R E T Y BONDS
W. L. TAYLOR, Vice President and General Manager
HOME OFFICE
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
DAVENPORT, IOW A
THE
November, 1926
NORTHWESTERN
61
BANKER
Selling Program Insurance
R IT IN G in a recent issue of the
R egister News, house organ of
the Register Life, D avenport, S.
W . S anford, D avenport general agent,
gives the follow ing in te restin g views on
“P rogram In s u ra n c e :”
“I n the sm all space given me, I have
ju s t one idea in my mind, nam ely to
aw aken in some of you, your respon
sibility to your clients of arranging their
insurance on some program . P ersonally
I feel th a t the insurance m an who does
n ot do this regularly w hether his client
carries ten thousand or one hundred
thousand of insurance is only a peddler
who hopes to sell a thousand here and a
thousand th ere.”
W
Fit Your Prospect’s Needs
W e have fad s and fancies in our life
insurance w ork ju s t as doctors and den
tis ts have periods when they are pushing
this plan or th a t. J u s t now you read
much about p u ttin g insurance in “ T ru st.”
M any new er and some older insurance
men th in k and ta lk th a t all insurance
should be placed th is way. This does not
fit all plans and all men. You m ust know
when and w here this plan fits. I n other
w ords you have to know how to fit a
m an’s needs. P rogram ing insurance is
n ot a fa d or a fancy. I t is the only in
telligent w ay fo r a m an to c a rry his own
insurance. I t is therefo re the only in
telligent w ay to sell it.
Address Real Estate Men
W . R. C. K endrick, form er Iow a in su r
ance com missioner, in a ta lk before the
Des Moines real estate board recently de
clared the city ’s sta tu s as one of the three
leading cities in the country in num ber
of home life insurance com panies. Mr.
K endrick is now vice president of the
Royal Union L ife of Des Moines, Iowa.
Selected as Chairman
Charles A. Peabody, p resid en t of the
M utual L ife of New York, has been made
chairm an of the tw entieth anniversary
convention of the A ssociation of L ife
Insu ran ce P resid en ts, which w ill be held
in New Y ork D ecem ber 9th and 10th.
M r. P eabody is one of th e founders of
the association.
C harles E. H ughes will address the
opening session of the convention. In v i
tatio n s have been extended to executives
of all life insurance com panies of the
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
The next step, and the g reatest one,
is to get th e necessary in fo rm atio n con
cerning the m an and his affairs. This is
your real job, and you m ust be a m an of
some stan d in g in your com m unity to
obtain com plete inform ation. The best
place I know o f to get the rig h t in fo rm a
tion is in the Diam ond L ife B ulletins
under Life Insurance, G eneral Section
“D.” By the way, every real life insur
ance man should have use of this service.
No man should sta rt to p rag ram until
he knows various kind of policies and
how options can be used. H e should know
much miscellaneous inform ation; ( 1 ) how
much it costs a boy or girl to go to college ;
( 2 ) w hat the usual cost is o f settling an
estate of different sizes; (3) w hat are the
chief advantages of monthly income over
p u ttin g all his estate in tru st and what
are the disadvantages; (4) w hat is the
m inim um size estate th a t should be p u t in
tru s t; (5) how can he be sure th a t certain
bills and creditors will be taken care of.
These are ju st a few things th a t the p ro
fessional underw riters should know.
A Story
W hen I was a t the N ational Association
Convention at Cleveland in 1921, I heard
F ra n k lin L. Ganse of Boston, tell this
story :
“I have a space in my garden at F arm ingham, M assachusetts, about six feet wide
U nited S tates and Canada to tak e p a rt
in the celebration, and the insurance
com missioners of the country are also
asked to atten d .
Central Life Agency Meeting
A gents of the C entral L ife A ssurance
Society of Iow a from the no rth w estern
p a r t of the sta te held th e ir annual m eet
ing and school of in stru ctio n recently in
Dubuque, w here E. L. Gifford, a s ta r p ro
ducer, is general agent. Roy H eartm an ,
field supervisor, fro m th e home office,
was the p rin cip al speaker. H e told the
agents of the com pany’s plans fo r the
big an n u al agency m eeting next year in
M emphis. Iow a agency supervisor G. M.
Buck was also p rese n t fro m the home
office. D. J . Keffeler, D. D. D uckett,
Charles C. B ran tm an , B. F . A nderson and
F re d K ingfield were announced as the
w inners of th e production contest which
had been held fo r ten days in honor of
M r. H eartm an .
by tw elve fee t long w ith a high old-fash
ioned stone wall back of it, which I decided
to use as a flower bed.”
“A salesman of flower seeds advises me
to buy two packages of petu n ia seeds
which will give me beautiful, fra g ra n t
flowers, very hardy, not ap p aren tly tro u
bled by any of the pests which lay hold
on so m any other plants and which will
bloom fo r weeks and months w ith p rac
tically no attention whatever.
“A nother seed salesman questions me
in detail about w hat flowers and shrubs
I already have in my garden, as to the
general buildings, and so takes a block
of surroundings of trees, fences, buildings,
and so takes a block of p ap er and draw s a
design of the plot in question.
“All this while he has sketched out w hat
he is recommending and I can very readily
see th a t he has tried to sell me a little
flower garden while the other m an only
offered me some packages of seeds.”
“W hich of these men is the high grade
salesman and is giving the best service and
m aking the largest sales'?”
Space would not perm it my telling the
details of how to program . Each agent
must work out his own plan. Anyone who
is interested can w rite me and I will send
him the details of the plan.
W e must always remember “ He is paid
most who serves best.”
Mutual Trust in Florida
M utual T ru st L ife In su ran ce Company
of Chicago, 111., is looking fo rw ard to the
developm ent of a very active F lo rid a
S tate Agency a t the head of which is A.
E. P ick a rd as general agent. M r. P ick
ard has secured the services of Jackson
Ingham , form erly connected w ith the
N orthw estern M utual, w here he was a
very active producer.
M r. Ingham will have com plete charge
of th e o rganization and developm ent of
th e agency u n d er th e supervision of M r.
P ick ard . P re p aratio n s have already been
made fo r the opening of an office a t O r
lando, and it is expected th a t w ithin a
very sh o rt tim e M utual T ru st will be
rep resen ted in all points of any conse
quence in the sta te of F lo rid a.
In cid en tally , M utual T ru st has r e
p orted a 41% gain in new business fo r
September.
62
THE
NORTHWESTERN
BANKER
Buy Stock in Southern
Surety
Back o f
NORTHWESTERN
N a t io n a l
A Strong Board
o f Directors
ELBERT L. CARPENTER
Director Since 1911
L. C a r p e n t e r is
presithe ShevlinCompany,
which, with its some forty
subsidiaries, does a wholesale
lumber business in all parts
of the United States.
Mr. Carpenter, born in
Illinois, spent his youth in
Clinton, Iowa, where he be
came connected with the Cur
tis Lumber Company. He came
to Minneapolis as a branch
manager for that concern in
1887. In 1892 he purchased
an interest in the Stephen CJ
Hall Lumber Company, there
by becoming identified with
the Shevlin-Carpenter-Clarke
interests. He is a director of
the First National Bank of
Minneapolis, and the Minne
apolis Trust Company. He is
president of the Orchestral
Association of Minneapolis,
which maintains and operates
the famous Minneapolis Sym
phony Orchestra.
E
• dent of
Carpenter - Clarke
'
T h is is N u m b e r 5 o f a
s e r ie s o f n in e
a d v e r tis e
m e n ts on th e B o a r d o f D i
r e c to r s o f N o r th w e s te r n N a
tio n a l L if e . E ach m e m b er
has been e m in e n tly s u c cess
fu l in b u sin ess, a n d each is
in clo se to u ch w ith th e a f
fa ir s o f th e C o m p a n y, ta k in g
an a c tiv e p a r t in it s m a n a g e
m e n t.
NORTHWESTERN
NATIONAL L IF E
INSURANCE CO.
O.J. A rnold. Pres.
M in n e a p o lis
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
A nnouncem ent was made la st m onth
th a t a large block of trea su ry stock of
the Southern S urety Company of Des
Moines has been purchased by Caldwell
and Co., investm ent bankers of N ash
ville, Tenn. I t is understood th a t 7,700
shares of ad d itio n al stock was issued by
the com pany and purchased by the N ash
ville bankers fo r a price in excess of
$1,500,000.
T his announcem ent is of g rea t in te r
est to middle w estern insurance men,
since th e Southern S u rety is the largest
casualty com pany w est of th e M ississippi
and has been fo rg in g ahead a t a rap id
pace. I t is licensed in fo rty -tw o states,
has been p aying cash dividends of 16 p er
cent, and this y ear will probably do about
ten m illion dollars in prem ium volume.
U nder th e new financing plan, the
paid-up cap ital of the com pany will be
$2,000,000. C apital stock of the com
pany was only recently increased from
$1,250,000 to $1,500,000. The com pany
w ill also have a cash surplus of $11,500,000.
Officers of the Southern S urety, who
express them selves as highly pleased over
the new arrangem ent, say th ere will be
no change in the policy of the com pany
or the executive staff except th a t J.
T urner P rice, assista n t vice p resid en t of
the F o u rth and F irs t N ational B ank of
November, 1926
Nashville, will become tre a su re r and
chairm an of the finance com m ittee of the
com pany. H e succeeds Roy C. A rm
strong, who has been actin g both as vice
p resid en t and trea su rer, b u t who reta in s
his position as vice p resident.
P urchase of stock in th e Southern
S u rety Company m akes the fifth in su r
ance com pany th a t Caldwell & Co. have
acquired larg e holdings w ithin the last
few years. Among others are the M is
souri S tate L ife In su ran ce Company, the
Cotton S tates L ife In suran ce Co., the
In ter-S o u th e rn L ife, and the N orth
A m erican N ational L ife In su ran ce Com
pany. Mr. Caldwell, although a young
man, is one of the leading financiers in
th e south.
Mr. P rice, before becoming associated
w ith the F o u rth and F irs t N ational Bank
of N ashville, was cashier of a bank a t
M cM innville, Tenn., fo r more th a n six
teen years. H e was p resid en t of the
N ashville Civic Club fo r one y ear and a
member of the board of directors of the
Cham ber of Commerce of N ashvillle fo r
a year. H e has fo r some tim e been a
leading civic w orker and p rom inent in
the social w orld of th is city.
C. S. Cobb of Des Moines will rem ain
p resid en t of the com pany, which was in
corporated in 1907, u nder the laws of the
sta te of Oklahoma, and was m erged in
1918 w ith the Southern S urety Company
of Iowa.
S h ou ld B a n k e rs
W r i t e Life In su ran ce?
A N K E R S fo r years have disagreed on th e ques
tio n , b u t you w ill ag re e th a t m any have a n
sw ered in th e affirm ative a n d th u s m a te ria lly
in creased th e ir e arn in g s.
B
L ife In s u ra n c e h a s becom e a necessity an d is in
g re a te r dem and to day th a n ever before. The field
is young, an d p a rtic u la rly b rig h t is th e fu tu r e of
th e business. In su ra n c e T ru sts alone a re a ttr a c t
in g m a n y b a n k ers w ho had fe lt th a t life in su ra n ce
w as e n tire ly a p a r t fro m th e business of ban k in g .
You a re th e fin an cial a d v ise r in yo u r com
m u n ity . C an you ju s tly advise yo u r c lie n t on his
life in su ra n c e a ffairs, o r m u st you call in a life
in su ra n c e m a n ?
M utual T ru s t is now in a p o sition to cooperate
w ith b a n k ers. Y our in q u iries w ill be given carefu l
a tte n tio n an d held s tric tly confidential.
I t costs n o th in g to look in to o u r p ro p o sitio n —
it m ay m ean tho u san d s of dollars to you la te r.
Get all the facts
M UTUAL TRUST
LIFE INSURANCE COMPANY
C A RL A. P E T E R S O N , Vice P resid e n t,
A. E. W IL D E R , D irecto r of A gencies
TH E CHICAGO TEM PLE —
CHICAGO
November, 1926
THE
Decide Important Bonding
Case
One of the m ost im p o rtan t surety cases
of recent years was decided recently in
W ashington, Iowa, in the case of the de
fu n c t F arm ers and M erchants B ank of
th a t city, in which the judge denied the
claim of the city of W ashington upon
fo rm er Iow a banking su perintendent
R obert Leach fo r $65,000 of city funds
deposited in the closed bank.
The case is very im p o rtan t in Iowa
jurisp ru d en ce fo r had it been decided
the o th e r way, no public official in the
sta te could obtain a corporate official
bond because he and the sureties would
be held liable fo r errors of judgm ent.
The city sued Mr.- Leach, who was
sta te superin ten d en t when the bank was
closed, un d er his official bond, and the
N ational S urety Company, his bonds
m an, contending th a t the deposit was ac
cepted a f te r Leach knew the bank was
insolvent. A ttorneys fo r M r. Leach and
the N ational S urety Company filed and
argued a dem urrer to the city ’s petition,
on nine grounds, eight of which were u p
held in the judge’s decision, holding fo r
Leach and the N ational S urety Company.
The atto rn ey fo r Leach and his bonding
com pany claim ed th a t no action can be
m aintained against a sta te official under
official bonds except in the nam e of the
sta te and th a t the sta te banking su p erin
te n d en t is not un d er obligation to close
any bank a t once when he learns it is in
solvent.
NORTHWESTERN
First Trust Occupies New Quarters
The T ru st D ep artm en t of the F irs t
T rust and Savings B ank of Chicago has
moved into new and p erm anent q u arters
occupying 32,000 square feet of space on
the fo u rth floor of the F irs t N ational
Bank building a t D earborn, Monroe and
C lark streets. The offices, which have
forced v en tilatio n and in d irect lighting,
are finished in w hite m arble, bronze and
m ahogany and are served by both p riv ate
elevators and those of the building.
This is the first com pleted u n it of an
extensive program of building and a lte r
ations upon w hich the F irs t N ational
B ank of Chicago and F irs t T ru st and
Savings B ank entered Ja n u a ry 1, 1925.
The banks acquired th e F o rt D earborn
Bank building and the 50-foot frontage
on C lark stree t im m ediately n o rth upon
which has been erected an 18-story bu ild
ing. The p rin cip al entrances of the build
ing are on D earborn and C lark streets,
while the banks will have entrances from
M onroe stree t as well.
New safe deposit vaults, w ith 35,000
boxes and a capacity of 50,000 have been
installed in the basem ent. The v au lt is
55x120 feet w ith an inside height of 8 V2
feet, p rin cip al doors of which are 30
inches thick, weighing, w ith vestibules,
83 tons. The vaults of the banks have
also been installed in the basem ent and
the offices of both banks on the ground,
banking and m ezzanine floors will be u n i
fied and extended through from D earborn
to C lark street.
The p ro ject has n ecessitated the re
moval of several d epartm ents to tem po
ra ry q u arters, b u t business has been con
tinued w ithout in te rru p tio n d u rin g the
alteratio n s, w ith little inconvenience. I t
is expected th a t th e developm ent, which
involves an expenditure of several m il
lion dollars, will be com pleted about J a n
u ary 1, 1928.
Royal U nion L ife
In s u r a n c e C o m p a n y
DES MOINES, IOWA
O ffers an unexcelled
line of policy con
tracts.
Our Juvenile poli
cies, w ritten on ch il
dren as y ou n g as one
day old, go in full
benefit autom atically
at age five w ith ou t
re-exam ination.
B oth sta te arid surety com pany offi
cials view the decision as highly im por
ta n t. F o r sta te officials and bonding
com pany officers the decision establishes
th a t only the sta te can sue a bonded pub
lic official on his bond. The theory of
this construction is th a t the bond p ro
tects everyone ra th e r th a n a single claim
ant.
Our special low rate
policies to business
and professional m en
are fast sellers.
The sta te banking d epartm ent was
v itally interested fo r th e decision up
held the rig h t of the superintendent to
use discretion in closing insolvent banks.
They pointed out th a t if they could not
use this judgm ent, no reorganization or
sales of closed banks could take place un
til the banks were closed and placed in
receivership.
W e w rite w om en on
equal
basis
w ith
men.
The F arm ers and M erchants B ank of
W ashington was the one in Avhich Sm ith
W . B rookhart, republican candidate fo r
the U nited S tates Senate, was a stock
holder.
R oyal U nion L ife B uild ing, Cor. 7th and Grand A venue
D es M oines, Iow a
W hosoever loves not picture is in ju ri
ous to tru th , and all the wisdom of
poetry.
P ictu re is the invention of
H eaven, the m ost ancient and m ost akin
to n atu re. I t is itself a silent work, and
alw ays one and the same habit.—Johnson.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
63
BANKER
Special agency open
ings are now avail
able. W rite W illiam
Koch, V ice P resident
and Field M anager.
Royal Union Life Insurance Company
Des Moines, Iowa
A. C. TUCKER, President
64
THE
Selling Auto Insurance
by Mail
OW an Iow a local agency p u t on a
successful m ail and telephone cam
paign fo r autom obile business, is
told in Travelers Protection and should be
of value to other agents. J . Q. Jeffries &
Co., of Clinton, Iowa, secured first a list
of all the automobile owners and addressed
a letter to each one. Five hundred of
these le tte rs were sent out on F rid ay . I t
may be of in te rest to add th a t to save
the trouble of addressing envelopes he
bought governm ent envelopes w ith “ w in
dows.” These envelopes, of course, were
stam ped, elim inating work.
N
NORTHWESTERN
BANKER
B efore m ailing the le tte rs he sorted the
500 according to streets. Then a list was
run off. Then M r. Jeffries took the tele
phone book and placed the correct tele
phone num ber a fte r each nam e on the
list.
Used Telephone Follow-up
E a rly M onday m orning he sta rte d call
ing on th e telephone, m aking ap p o in t
m ents and discussing the insurance. A t
3 :00 o’clock M onday afternoon, F ield A s
sistan t Bowers arrived, and Mr. Jeffries
and Mr. Bowers sta rte d to call on pros
pects. F rom th a t tim e u n til 3 :00 o’clock
T hursday aftern o o n the follow ing results
were accom plished:
November, 1926
T h irty -fo u r cars were insured. I n
cluded also w ere two p late glass ap p li
cations on autom obiles and two $50 de
ductible collision applications.
F o u r team s were covered fo r lim its of
$25,000 and $50,000 and $5000 P . D.
One follow -up finally resu lted in a fleet
of ten tru ck s and one pleasure car being
covered.
These were actu ally closed. There are
m any others which will come in. Some
prospects postponed action u n til later.
Of course, Mr. Jeffries is m ain tain in g a
com plete follow -up system on these lines
over the telephone in m aking ap p o in t
m ents and inquiries concerning liab ility
and p ro p erty dam age insurance. In those
th ree days tw enty-tw o expirations were
secured.
Wives Gave Information
“I dropped into Mr. Jeffries’ office,”
w rites M anager M cLaughlin, “as Mr.
Bowers and he were w orking. In order
to obtain first-hand in form ation, I tele
phoned probably th irty or fo rty people.
M ost of the num bers were home tele
phones of th e autom obile owners. In
nearly every case the head of th e house
was away. H ow ever, we secured consid
erable in fo rm atio n from those who an
sw ered th e telephones. M ost of them , of
course, were the wives of our prospects.
Several of the women I talk ed to said th a t
th e ir husbands h ad received th e le tte r
and had told them to lay it aside u n til
th ey h ad tim e to read it. Those cases,
of course, were good prospects from our
point of view even on such inform ation.
Results Were Surprising
“ The resu lts of a cam paign of this
kind alw ays su rp rise one. Mr. Jeffries
w rote some people he had no idea of
w riting. T here were some, a p a in te r and
a ja n ito r, fo r instance, who were the
easiest to secure when it was an ticip ated
they would be th e h ard est to sell on pub
lic liab ility and p ro p erty damage.
“A cam paign of this kind fo r us a t least
upset preconceived ideas of who would
buy insurance and who would be good
prospects and who would not.
“In those th ree days more th a n $1000
in prem ium s in all were w ritten , including
an o rder fo r higher lim its on M r. Jeff
ries’ larg est fleet policy.”
Year Book of Advertising
The Y ear Book of the F in an c ial A d
v ertisers’ A ssociation, scheduled to be
off the press shortly, will contain a com
plete symposium of financial advertising.
A num ber of its 380 pages will be de
voted to a financial ad v ertisin g clinic,
held a t the A ssociation’s la st convention,
fo r which prizes were aw arded.
In ad d itio n the book w ill contain a re
p o rt of the E leventh A nnual Convention,
and a com plete list of the F in an cial A d
v ertisers’ A ssociation.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
N o v e m b e r, 1926
TH E
N O R T H W E S T E R N
65
B A N K E R
i)<sv
Is Named Secretary
Of g rea t in te rest to th e ir m any frien d s
both in and out of the insurance f r a
te rn ity was the recent announcem ent
th a t E m ory E nglish, form erly president
of the Iow a B onding and C asualty Com
pany, and a t one tim e insurance commis
sioner of the sta te of Iow a, has resigned
as secretary of the Des Moines Chamber
of Commerce, to be succeeded by Joel
W i s h to
GO I N T O
BUSINESS
fo r Y o u r s e lf
A ll of us at some tim e or other w ished to enter b u sin ess for
ourselves. Perhaps w e have had th e opportunity hut lacked
th e courage to venture.
O p p o rtu n ity Is R inging Y our Doorbell
T o p C o n tra cts A v a ila b le In
Alabama
Arizona
Arkansas
California
Colorado
Florida
Georgia
Kansas
Kentucky
Michigan
Missouri
Nebraska
New Mexico
North Dakota
Pennsylvania
South Dakota
Tennessee
Texas
Washington
Wyoming
The N ation al L ife A ssociation oilers YO U th e u n lim ited op
p ortu n ities of a good payin g bu sin ess of your own. In Illin o is
a N ation al L ife salesm an has been noted for h is con sisten t
production, w hich over a spread of 98 m onths has averaged
$30 ,0 5 8 .0 0 .
A num ber of N ation al L ife salesm en have increased th eir
earning a b ility by 50 per cent through th e N ation al L ife ’s
popular low -cost policies. T his sam e opportunity is possible
to you through a N ation al L ife contract. Correspondence in
vited.
AGENCY DEPA R TM EN T
National Life Association
H om e Office: D es M oines, Iow a
W anted
Banker A g en ts
W e have some splendid open
ings in various parts of the
state of Iowa for good Banker
Agents.
JOEL TUTTLE
T uttle, form erly secretary of the Iow a
B onding and C asualty and more recently
executive secretary of the S outhern
S urety Company.
M r. T u ttle is a veteran in the insurance
business, rep resen tin g the T ravelers here
p rio r to his connection Avith the Iow a
Bonding and C asualty. D uring recent
years he has become deeply interested in
the w ork of the Cham ber of Commerce,
and fo r the p a s t y ea r has been vice p resi
dent of the local cham ber. H is selection
as secretary succeeding Mr. E nglish has
m et Avith Avide approval am ong the busi
ness and professional men of Des Moines.
Mr. E nglish, who la st w inter accepted
the secretaryship of the local cham ber
Avith the understan d in g th a t it would be
fo r only a short term of office, has not
as yet announced his plans fo r the fu tu re
b ut it is understood th a t he Avill enter
p rivate business.
Clifford D ePuy, publisher of T h e
N o r t h w e s t e r n B a n k e r , is presid en t of
the Des Moines Cham ber of Commerce.
If the Missouri State Life is not
represented in your com m un
ity w rite for our proposition.
A great Company daily growing greater
B. C. THURM AN
Manager Des M oines Branch
618 Insurance Exchange
Des Moines, Iowa
M ISSOURI STATE LIFE
INSURANCE COMPANY
M. E. S I N G L E T O N , P r e s i d e n t
E veryone is the son of his own works.
— Cervantes.
P atience, and shuffle the cards.— Cer
vantes.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Life
A c c id e n t
H O M E O F F IC E :
Health
S A IN T LO U IS
Group
66
TH E
N O R T H W E S T E R N
B A N K E R
P lanning A head
The m an w ith initiative, the m an who plans ahead
and does things while others are thinking of them ,
is the m an who makes the biggest success in the
Life Insurance world.
That is just w hat Des
Moines Life and A nnuity Cooperation is doing for
its banker agents, and will gladly do for you. It
would help you analyze your field and determ ine
its possibilities and then assist in the plans for
producing business.
Such is the kind of service we ren d er willingly and
gladly to all of our banker agents.
J . J . S h a m b a u g h , P res.
Des Moines Life and Annuity Company
D es M o in e s , Io w a
You Value Integrity
Just as you frequently loan money to men on
the strength of personal integrity, so also do the
people of Iowa have confidence in this Company
because they know from experience that they can
depend upon the Iowa National Fire Insurance
Company.
Prom ptness, here, is habitual.
Fire, Lightning, Tornado and Autom obile Insurance
5
E JM M
FIRE INSURANCE COMPANY
DES MOINES, IOWA
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
N o v e m b e r, 1926
LEGA L D EPA R T M E N T
(C ontinued from page 22)
check u n d er th e above section of the
sta tu te ? and, secondly, as applied to th is
case, W as th is check presented w ithin a
reasonable tim e a f te r its issuance? I f
not so presented, th en the draw er is re
leased from liability, and he would be en
titled to charge the same ag ain st the
Lum ber Company, or, in o th er words,
to have i t credited to his account, re
gardless of w hether the Lum ber 'Company
received the proceeds of the check. F o r
w arding a check by a circuitous ro u te
may, as a general rule, be said to con
stitu te negligence, except where the
check reaches its d estination as soon as
if sent direct to the bank.
I t may be said in passing th a t we are
not dealing w ith the question of the in
dorser of a check in th e in sta n t case.
I t is a w ell-settled proposition of law
th a t, w here a person receives a check
in the tow n w here the draw ee bank is
located, it m ust be p resented before the
close of the n ex t business day. O rdi
n arily , the question of w hether p rese n ta
tion of a check has been made w ithin a
reasonable tim e is a f a c t question. This
case being in equity and by application
of the above rules governing such m a t
ter, the court found th a t said check was
not p resented w ithin a reasonable tim e,
as provided fo r by the above quoted sec
tio n of the N egotiable In stru m en ts Law.
This being tru e, the loss which occurred
m ust fall upon the L um ber Company.
H aving fallen on the L um ber Company,
the $600 balance due on account, re p re
sented by said check is p a id ; therefore,
th ere would be no rig h t on the p a rt o f
the Lum ber Com pany to tak e the $600
out of the $1,000 to offset the $600 check.
I t was determ ined in this m a tte r th a t
a check n o t presented to draw ee bank
u n til fo u r days a fte r check was draw n,
was not w ithin “reasonable tim e.”
All th e m akers of dictionaries, all com
pilers who do n o thing else th a n rep e at
backw ards and fo rw ard s th e opinions,
the errors, th e im postures, and the tru th s
already p rin ted , we m ay term p la g ia ris ts ;
b u t honest p lag iarists, who arro g ate not
the m erit of invention.— V oltaire.
W ith o u t philosophy we should be lit
tle above the anim als th a t dig or erect
th e ir h ab itatio n s, p rep a re th e ir food in
them , tak e care of th e ir little ones in
th e ir dw ellings, and have besides th e
good fo rtu n e, which we have not, of be
ing born read y clothed.— V oltaire.
P hilosophy trium phs easily over p ast
evils and fu tu re evils, h u t p resen t evils
triu m p h over it.— L a Rochefoucauld.
M illions f o r defense, b u t n ot one cent
fo r trib u te .— Pinckney.
N o v e m b e r, 1926
TH E
N O R T H AV E S T E R N
B A N K E R
67
Frederick Vierling Dead
M embers of the banking f ra te rn ity
were shocked to learn of the recent sud
den death of F red erick V ierling, vice
p resident and tru s t officer of the M issis
sippi V alley T rust Company.
Mr. V ierling, who was widely known
as an au th o r and au th o rity on tru sts and
estates, died a t St. L uke’s H o spital in
St. Louis. A t his desk the previous day,
he had com plained of indigestion and his
Title
Insurance
eliminates w aste— .
reduces cost
and time
F or the
R eal E s ta te In v e sto r
FREDERICK VIERLING
physician took him to St. L uke’s H osp ital
fo r an exam ination.
B eginning w ith none of the advantages
enjoyed by the average boy, Mr. V ierling,
by constant application, rose to a posi
tion of national eminence as an au th o rity
on tru s t law and accounting. H e con
trib u te d widely to financial m agazines,
and published several booklets, including
a well-known tre a tise on the am ortiza
tio n of prem ium s and the accum ulation
of discounts on bonds.
M r. V ierling’s connection w ith the M is
sissippi V alley T ru st Com pany began in
1891, a year a f te r its organization. F o r
six years he was a clerk, b u t in 1897 he
became tru s t officer fo r the institution.
In 1911 he was elected vice president.
H e was active in the tru s t com pany divi
sion of the A m erican B ankers A ssocia
tion, and delivered num erous addresses
before m eetings of th a t body. A t the re
gional tru s t conference held in St. Louis
th is spring, M r. V ierling was the moving
sp irit in m aking arrangem ents fo r con
ducting the convention and outlining the
program .
American Bank in Poland
A n A m erican bank, the first in Poland,
has been opened u n d er the nam e of the
A m erican B ank of Poland, w ith a capital
of $5,000,000. The bank is financed by
the In te rn a tio n a l M atch C orporation,
w ith the p rim ary object to finance expor
tatio n s of raw m aterials from Poland.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
T here are five im p o rtan t points which commend
T itle In su ran ce to anyone ow ning or dealing in
real estate:
F i r s t — T here is a thorough exam i
nation of title, once and fo rev er down
to a certain point.
S econd— T here is an absolute g u a r
antee, backed by th e to tal resources
of th e In su ran ce Company, which is
under direct supervision of th e S tate.
T h i r d — T here is a saving of tim e
and expense— two im p o rtan t item s in
business.
F o u r t h — G reat ease and cheapness
in th e m aking of m ortgages and all
subsequent tra n sfe rs, w here quick
liquidation is desired.
F i f t h — T itle In su ran ce is a busi
ness asset, as all other kinds of in su r
ance are assets, enhancing th e value
of th e th in g it protects.
T itle Insurance D epartm en t
Southern Surety
Company
201 Youngerman Building
DES MOINES
IOWA
What the 63rd Annual Statement Shows
A s s e t s o f $ 368,818,073.
P o l i c y h o l d e r s ’ r e s e r v e ( M a s s a c h u s e t t s s t a n d a r d ) o f $ 316,383,808.
O th e r l i a b i l i t i e s $21 ,9 2 2 ,4 5 9 , in c lu d in g - p o l i c y h o l d e r s ’ d iv i d e n d s
250,000 p a y a b le in 1926.
of
$1 1 ,-
S u r p lu s A s s e t s $ 3 0 ,5 1 1 ,8 0 5 ; 9.6 p e r c e n t o f th e g e n e r a l p o li c y r e s e r v e .
T h e J o h n H a n c o c k M u t u a l w r i t e s a l l f o r m s o f L if e , E n d o w m e n t a n d T e r m
p o l i c i e s f o r B u s i n e s s a n d P e r s o n a l P r o t e c t io n , J o i n t L i f e c o n t r a c t s , T o t a l
D i s a b i l i t y a n d D o u b l e I n d e m n i t y , a l l th e n e w f o r m s o f G r o u p , W h o le s a le a n d
S a la r y D e d u c t io n , a s w e l l a s A n n u it y c o n t r a c t s in v a r i o u s f o r m s .
O u r o r g a n i z a t i o n i s p r e p a r e d to
a r r a n g e l i f e in s u r a n c e p r o t e c t io n
to m e e t a n y n e e d a n d s p e c i a l i z e s
in t h e r e q u ir e m e n t s o f p a r t ic u l a r
c o n d it io n s a n d i n h e r it a n c e t a x e s .
1¿iAN ~
Li f e In s u r a n c e C ompany ^
of
Bo s t o n . M a s s a c h u s e t t s
H A R R Y S. HASK INS, State Agent
417-21 Southern Surety Building, Des Moines, Iowa
THE
68
N O R T H W E S T E R N
N o v e m b e r, 1926
B A N K E R
For Bankers and Their W ants
This department of THE NORTHW ESTERN BANKER is to
assist SUBSCRIBERS in obtaining goods or service hard to
find. I t is free to subscribers. Use it. ASK US, as we can
tell you where to buy anything you need in your bank or for
your bank. TELL US, as your “ w a n t” w ill be published
under the above heading free of charge. In answering
classified advertisements which have key numbers please en
close a two-cent stamp. This is used to forward your letter.
Iowa Cashiership w anted by m arried
m an w ith 13 y e a rs’ experience as cashier.
F am iliar w ith fa rm loans, general in su r
ance, legal docum ents and all phases of
banking. Speak E nglish and German.
B est of references gladly furnished. A d
dress No. 2930, the N orthw estern B anker
— 11.
Position w anted in Iowa bank. Two
y e a rs’ experience in shorthand and ty p e
w riting—also B urroughs posting machine
and counter work. Age tw enty-one, high
school g rad u ate and com mercial college
training. B est of references. A ddress
No. 2931, the N orthw estern B anker— 11.
For Sale: Ten adding and posting m a
chines, 1,500 modern type safe deposit
boxes and sundry bank equipm ent. Con
sidering selling whole lot a t a very low
figure. A rth u r Sanford, Sioux City, Iowa.
Position w anted as assista n t cashier in
country bank. Single m an, 25 years of
age.
Speaks Scandinavian language.
Now employed but seeking place fo r ad
vancem ent. Can fu rnish the best of
references, w ith six y e a rs’ banking ex
perience. A ddress No. 2932, the N o rth
w estern B anker— 11.
Position w anted by an energetic young
m an as teller or assista n t cashier. U ni
v ersity g rad u a te w ith banking experi
ence. Good references. A ddress No. 2918
The N orthw estern B anker— Indef.
F or Sale Cheap: One set bank fix
tu res, m arble-faced counters, and about
60 fe e t oak w ainscoting w ith m arble
baseboards. An ornam ent to any bank.
A ddress W. Sperry, H am burg, Iowa—
Indef.
Banker Elected
G. W . P hillips, p resid en t of the C entral
N ational B ank of Columbus, N ebraska,
was elected p resid en t of the P la tte
County Pioneers association a t th e an
nual reunion held recently and atten d ed
by 175 members. O ther officers elected
were Mrs. C. N. M cElfresh, vice p resi
d en t; A. J. Galley, secretary -treasu rer,
and M rs. R. M. Campbell, historian.
W anted: Good second-hand S taats
Money Changer. M ust be cheap. L. J.
B itterley, Baring, Mo.
O rganization of a county association
composed of the leading banks of H all
county, N ebraska, was p erfected a t a
m eeting held a t H otel Yancey, G rand
Island, recently, a t w hich E lm er W il
liams, p resid en t of the Commercial S tate
B ank, was elected p re sid e n t; and 0 . A.
Yieregg, second vice presid en t of th e N e
b rask a S tate B ank, was elected secretarytrea su rer. The meeting, called prim arily
fo r securing an expression of H all county
bankers on th e resolutions passed, at
Omaha on A ugust 18th, by rep rese n ta
tives of seventy-three out of n in ety sta te
banks of the state, resu lted in a vote
unanim ously approving those resolutions,
w ith the exception of resolution No. 2.
All of the banks of H all county were
represented a t the m eeting.
Steel and Cooper Engraved
F L O W E R S A N D SE R V IC E
Position w anted by widow 27 y ears old.
Six y e a rs’ banking experience. A vail
able im m ediately. Can fu rn ish best of
references. A ddress No. 2933, the N o rth
w estern B anker— 11.
For Sale—The controlling in te rest in
a sm all Iowa bank carrying position of
cashier.
Only insurance agency. AH
side lines go to cashier. Al lpaper g u a r
anteed. No real estate to buy. This is
a ra re opportunity fo r a young m an to
g et a business w ithout a larg e invest
m ent. A ddress No. 2934, the N o rth
w estern Banker— 11.
S T A T IO N E R Y , B U S I N E S S
ANNOUNCEM ENTS AND CARDS
F o r q u a lity w o r k a d d r e ss
T h e H o m e ste a d
C o m p a n y , D e s M o in e s
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
A L P H A F L O R A L COM PANY
P h o n e W a l n u t 302
J . S. W I L S O N F L O R A L CO.
D r a k e 584
D E S M O IN E S
Oldest Banker in U. S.
The en tire staff of the U nited S tates
T ru st Com pany joined A ugust 24th in
sending a message of co n g ratu latio n to
Jo h n A. S tew art, chairm an of th e board
of tru stees of th e com pany, who cele
b ra te d his 104th b irth d a y a t his summ er
home a t M orristow n, New Jersey . Five
generations of the S tew art fam ily a t
tended the celebration.
There was little v a ria tio n from the
m anner in which he spent his b irth d ay s
fo r several years. Besides his relatives,
lie was greeted by a few old frien d s.
Telegram s of congratulations from all
p a rts of the country and large q u an tities
of flowers fro m old associates in W all
S tre et were received.
Mr. S tew art has n ot been a t th e tru s t
com pany’s offices fo r fo u r years, having
re tire d from business on his 100th b irth
day. H is frien d s declared, however, th a t
he was still exceedingly keen and a le rt of
m ind and took an active in te rest in gen
eral affairs. M r. S tew art is A m erica’s
oldest b anker and the p a tria rc h of the
tru s t com pany fra te rn ity . H e was one
of P re sid en t L incoln’s advisers in the
Civil W ar, and was a figure of im portance
in W all S tre et fo r alm ost 70 years.
The P illsb u ry S tate bank of P illsbury,
N ebraska, opened recently. The bank
has been com pletely reorganized.
Religion is the eldest sister of philos
ophy; on w hatever subjects they may
differ, it is unbecom ing in eith er to q u ar
rel, and m ost so about th e ir inheritance.
—Landor.
L O O S E -L E A F -D E V IC E S -A N D
A C C O U N TIN G - S Y S T E M S
S o ld in I o w a b y
J . H . W E L C H P R I N T I N G CO.
1 1 6 6 -6 8 -7 0 S ix t h A v e „ D e s M o in e s .
P r in t e r s , B in d e r s , M fg . S t a t io n e r s .
N o v e m b e r, 1926
TH E
N O R T H W E S T E R N
B A N K E R
69
Twenty-five Years Old
The F ir s t N ational B ank of F lau d reau ,
South D akota, recen tly celebrated its
tw enty-fifth anniversary. Jam es T. B ig
low was the cashier of the in stitu tio n u n
til 1919, a t which tim e J . R. Coonrod was
elected to th a t position, and M r. Bigelow
became president.
The F ir s t N ational has enjoyed a
health y grow th since its organization,
and holds a su b stan tia l place in the com
m unity.
South Dakota
Bank N ews
Officers South D akota Bankers
Association
P r e s id e n t............................... E in e r Jo h n so n
V o lin
V ice
E IN E R JO H N S O N
P re s id e n t
P r e s id e n t.........H a r r y
G e tty sb u rg
M.
G riffith
S e c re ta ry ...........................Geo. A. S ta rr in g
H u ro n
T r e a s u re r.................Geo. C. F u lle n w e id e r
H u ro n
GEO. A. S T A R R IN G
S e c re ta ry
Move Headquarters
New Bank at Conde
S tate headq u arters of the South D a
kota S ta te B ankers A ssociation, in
H uron, has been moved from the second
floor of the city hall to room 8 in the
K n ig h ts of P y th ia s building.
George A. S tarrin g , secretary of the
sta te association, expressed to M ayor D.
G. M edbery and the mem bers of the board
of city com m issioners the association’s
ap preciation to the city fo r being p e r
m itted to occupy the form er q u arte rs in
the city hall.
Need fo r the room by the city com
pelled the sta te association to find other
quarters.
A t a stockholders’ m eeting The P eo
ples B ank of Conde, South D akota, was
recently organized. $20,000 cap ital and
$2,000 undivided profits w ere paid in, in
cash, a c h a rte r was applied fo r, and as
soon as the c h a rter is received, the bank
w ill open fo r business. This in situ tio n
is en tirely locally owned, was b u ilt w ith
the idea in m ind of giving to Conde a
bank th a t th e people can be proud of.
No one stockholder owns more th an 10
of the 200 shares of stock. The stock is
owned by E. H. Robertson, H. H. H aydlauff, Jo h n Owens, L. C. V anO rnum , E.
R. Place, A nton Lenz, M. P. H ynes, Ed.
Lenz, Neil G. H erm an, Jo e Lenz, B ert
Lenz, A nton K lapperich, L. D. Miles, D.
R obertson, J a sp e r K lapperich, W m. Sim
mons, H. J . Place, W . A. G eary, N. L.
H aig h t, B e rt Miles, P au l Brown, Jam es
Cutshaw, E a rl B eartsch.
M essrs. R obertson, Owens, H erm an,
Lenz, Geary, Cutshaw and B eartsch will
be directors.
Active at Eighty
M. P . Ohlman, p resid e n t of the A m er
ican S tate B ank of Y ankton, South D a
kota, celebrated his 80th birth d ay . Mr.
Ohlman was active in the organization of
the bank in 1890 and still is an active
officer of the in stitu tio n , being a t his
desk every day.
South Dakota Meetings
Clearings Increase
The G rdnt County B ankers A ssocia
tion m et recently and agreed upon a 50cent-per-$100 charge on out-of-tow n
cream ery and produce checks. N early
every b anker in the county expressed his
intentions of s ta rtin g the service charge
on sm all checking accounts. A com mit
tee was appointed to confer w ith County
Commissioners in the hope of low ering
the in te rest ra te on county deposits.
K ingsbury County B ankers A ssociation
in its m eeting agreed upon a charge of
3 cents per item or 50 cents p er $100 on
out-of-tow n cream ery checks. The banks
of this county have agreed to n o tify the
public in local new spaper announcem ents
of the necessity of carry in g b e tte r bal
ances in th e ir sm all checking accounts.
A ccording to a com pilation a t the Sioux
F alls C learing H ouse A ssociation re
cently, b ank clearings in Sioux F alls,
South D akota, d u rin g the m onth of Sep
tem ber were $6,264,663.28. This am ount
is $776,361.39 higher th an fo r the corres
ponding m onth in 1925, the records
showed. I n Septem ber of last y ear the
clearings were $5,488,301.89.
Reopened
The Citizens S tate B ank of Colman,
S outh D akota, is again open fo r business
a f te r a sh o rt suspension of a week. In
the reorganization, the in stitu tio n will
be in m uch b e tte r condition th a n it was
before. Much credit is due the depositors
of the b an k in the prom pt m anner in
w hich they helped to re c tify the situation.
Changes at Colome
W a lte r E. W ichner has been prom oted
to assista n t cashier of the T rip p County
S tate B ank a t Colome, South D akota,
succeeding George F. H echt, who resigned
to become cashier of the S tate B ank of
Scenic. R ay E. Limley, form er cashier
of the la tte r in stitu tio n has resigned to
continue his education in M inneapolis.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Install Gas Bombs
The S ecurity S tate B ank of W illow
Lake, S outh D akota, has recently in
stalled a system of gas bombs as a b u rg lar
preven tativ e. The device is extrem ely
sensitive, and any excess of h eat or a
heavy ja r will release the to rtu ro u s
fumes.
Plan Consolidation
The F arm ers and M erchants S tate
B ank of Spencer, South D akota, and the
Spencer S tate B ank held a jo in t m eeting
recen tly and decided to consolidate. The
new bank will be called the F arm ers and
M erchants S tate Bank. The F arm ers
and M erchants B ank closed its doors
A ugust 30th, and was to have opened
again on O ctober 18th. The new in stitu
tion will have a cap ital stock o f $25,000.
School Savings System
A saving system fo r M itchell, South
D akota, public school children was in
au g u rated recently, the plan adopted
being th a t of the T h rift In co rp o rated , a
school banking system of Chicago. M rs.
L. C. H o rto n and Miss E sth e r H aven, re p
resen tativ es of the Chicago company,
were there to in stall the system in the
schools and banks.
The plan is a sim ple one, w hereby the
teacher holds a bank class once a week,
and w ith the help of a stu d en t cashier ac
cepts the deposits from each child and
enters the am ount in th e stu d en ts’ pass
books. The child m ay m ake a deposit of
any am ount from a penny up, and re
ceives the same ra te of in te rest as an
ad u lt account does. School children, in
th is way, learn the fund am en tals of b an k
ing and cultivate the h ab it of saving.
A Billion Dollars Yearly
A m erican movie fan s spend ap p ro x i
m ately $1,000,000,000 a y ea r in adm ission
fees a t the 20,233 p icture th e ate rs in the
country.
S tatistic s on the ex ten t of the industry,
which goes back to A p ril 27, 1896, when
the first film was shown in K o ster and
B iel’s music hall, New Y ork City, have
been m ade available by W ill H. H ays.
The average weekly atten d an ce in 1925
was 90,000,000 persons.
News reels depicting cu rren t events are
seen by 51,000,000 people every week.
P roduction costs of A m erican films are
$150,000,000 annually, while the studio
salaries am ount to $60,000,000 a year.
The num ber of perm anent employes of
the in d u stry is 235,000.
L isted shares of m otion companies to
ta l 11,331,394, held by 59,157 persons.
The export busines in films increased
from 32,000,000 lin ear fee t in 1913 to
235,000,000 in 1925.
TH E
70
N O R T H W E S T E R N
B A N K E R
Solving the Cream-Check Problem
H E S outh D akota B ankers A ssocia
tion has com pleted its com mittee
w ork in connection w ith charges on
out-of-tow n cream ery checks, u nder the
direction of a special com m ittee consist
ing of L. M. Larsen, C ashier of the J e r
auld County Bank, a t W essington
S p rings; E. W . Radeke, vice president of
the F irs t N ational B ank of A lexandria,
and Louis Jacobs, president of the E x
change B ank of Lennox.
The com m ittee sent its recom m enda
tions to all the bankers of the state, ask
ing them to advise the sta te office w hether
or not they would support same. The re
tu rn s from 54 counties were very g ra ti
fying. A ll but 12 of the banks which re
plied stated th a t they were p u ttin g the
service charge into effect, only one of
these 12 not approving of the com mittee
T
recom m endations. The association esti
m ates th a t a t least 300 banks in the state
are now m aking a service charge fo r cash
ing out-of-tow n cream ery and produce
checks.
The Situation by Counties
The follow ing shows the d istrib u tio n
of the 170 replies in 54 counties by banks
expressing th e ir attitu d e on the cream
check com m ittee recom m endations. W ith
the exceptions noted, all banks endorsed
the com m ittee’s schedule.
10 replies : M innehaha County.
8 replies : Brow n County.
7 replies each: R oberts and Y ankton
counties.
6 replies e a c h : Clark, Lake, P en n in g
ton and W alw orth counties.
Will Your Customers Feed
Their Corn?
If so— have you sufficient outlet for
YOUR FEEDER PA PER ?
The Live Stock National Bank
L o c a te d a t th e S to c k Y a r d s
S io u x C ity , Io w a
Is especially well equipped to handle
Live Stock Loans
Y O U R A C C O U N T IS IN V IT E D
m
SIOUX
io m
FALLS
Q
lJ J f è J n
o m
p o m
m
T
œ
g œ
SOUTH
DAKO TA,
Mr. Banker:
M o n ey se n t a w a y fro m h o m e n e v e r
bu ild s y o u r c o m m u n ity : : : :
Make a connection w ith a HOME L IF E IN SU RA N CE TF=
COMPANY—th a t deposits the Prem ium s in your bank “
Ct-K
Guy C.Barton
or invests in m ortgages in your te rrito ry .
P R E S ID E N T
S.H Witmer
VICE-PRES.
(O ld L in e L e g a l R e s e r v e )
MGR.AGENTS
H.O Chapman
“A SOUTH DAKOTA COMPANY’
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
SECRETARY
TREASURER
N o v e m b e r, 1926
5 replies e a c h : C harles Mix, Clay,
Codington and Lincoln counties.
4 replies each: Corson, F aulk, G rant,
M iner, M cPherson and P erk in s counties.
3 replies e a c h : Beadle, Campbell,
Dewey, Douglas, H aakon, H anson, H u tch
inson, M arshall, P o tte r and S pink coun
ties.
2 replies e a c h : Bon Homme, B utte,
Brookings, Day, E dm unds, Gregory, H am
lin, H and, K ingsbury, Lyman, McCook,
T ripp, T u rn er and Ziebach.
One rep ly e a c h :
Brule, Davison,
H ughes,
Je ra u ld ,
Jones,
Law rence,
Meade, Moody, M ellette, Sanborn and
Sully counties.
Exceptions and Comments
Beadle County— One bank debating.
Brow n County— One bank gets checks
through oil statio n s and hesitates to
charge. One bank w aiting fo r county as
sociation to tak e action.
Charles M ix County— One bank w ants
10 cents m inim um charge p e r item . One
charges 2% cents each which nets av er
age 48*4 cents p er $100.
Clay County— One bank “probably”
will adopt plan and favors it. A n o th er
is satisfied w ith 25 cents b u t m ay change.
Codington County— One b an k fav o rs
b ut cashes practically no cream ery checks,
th erefo re m ade no promise.
Corson County— One b an k ch arg in g
25 cents b u t will change provided its
agreem ent can be cancelled.
Edm unds County— One b ank charges
25 cents though approving com m ittee
schedule. W an ts county association to
take action.
G ran t County— County agreed fo r com
m ittee schedule.
H an d County— One bank has agree
m ent a t 25 cents w hich it p refers not to
break, though charging an o th er com pany
50 cents.
H ughes County— H as v arying schedule
and will try to make it uniform .
H utchinson County— One a t $1 p er
$100.
Law rence County— No endorsem ent
since b ank seldom cashes cream checks.
M innehaha County— One bank did not
state w hether th e ir ra te of 25 cents would
be increased.
M cPherson County— H as agreem ent
w ith Campbell County a t 2y 2 cents p er
item. W ill go w ith m ajo rity of A ssocia
tio n to 3 cents. One bank quotes 25 cents
charge b u t w ants to go to 50 cents.
P ennington County— One bank charges
10 to 20 cents b u t believes in com m ittee
schedule.
R oberts County— One bank indicates
th a t it w ill stick to "15 cen t charge,
though approving com m ittee schedule.
Y ankton County— Includes Y ankton
C learing House Association.
N o v e m b e r, 1926
TH E
N O R T H W E S T E R N
B A N K E R
71
With First National
Leo Schaff has accepted a position in
the F irs t N ational B ank of C rofton, N e
braska, and commenced his duties re
cently. Leo was a clerk in the H artin g to n
N ational B ank f o r some years and, fo r
the p a st few m onths, has been w orking
in the Lubeley hard w are store.
N eb rask a
B ank N ew s
Officers Nebraska Bankers
Association
I. R. A L T E R
P r e s id e n t
P r e s id e n t.......................................I . R . A lte r
G ra n d Is la n d
C h airm a n of th e E x e c u tiv e
C o u n cil............................. P . L . H a ll, J r .
G reenw ood
S e c re ta ry ..............................W . B . H u g h e s
O m aha
T r e a s u r e r .............. .................E. W . T hom as
O m aha
G e n eral C o u n sel.....................J . P . P a lm e r
O m aha
Appointed Private Secretary
W M . B. H U G H E S
S e c re ta ry
Says Guaranty Law Has Been
Great Boon
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Says America Is Generous
A fte r atten d in g the A m erican B an k
ers A ssociation convention a t Los A n
A special assessm ent of one-fourth of geles, Walter W. Head, fo rm er presid en t
1 p e r cent of deposits was levied ag ain st of the association and p resid e n t of the
all sta te banks of N ebraska, to be credited Omaha N ational B ank, w ent east to New
to the bank depositors’ g u ara n ty fund. York, Boston and W ashington, D. C., and
In announcing th e levy, S ecretary K irk while in New York, on October 13th, ad
Griggs of the sta te d ep artm en t of trad e dressed the K iw anis Club on A m erica’s
and commerce, said th a t the g u aran ty policy tow ard the debts of E uropean n a
fu n d had on deposit in sta te banks, $957,- tions. M r. H ead s a id : “A m erica has been
267.27, and the levy would brin g an ad d i more th an generous in h er debt se ttle
tional cred it of $690,000. Sale of assets m ents, despite beliefs to th e co n trary .”
of d efu n ct banks has yielded, to the
U nder p resen t settlem ents, ratified and
g u a ra n ty fund, an ad d itio n al $150,000, so
unratified, the U nited S tates has can
th a t th e p rese n t to ta l credit to the fu n d
celled 75 p er cent of I ta ly ’s debt, 53 p er
is more th a n $1,797,250, according to Mr.
p er cent of Belgium ’s debt, and 52 per
Griggs.
cent of P ra n ce’s debt, while A m erica’s
F ive m illion dollars is the an ticip ated
only concession to G reat B rita in has been
loss in insolvent sta te banks, in Mr.
a low ra te of in te rest through which she
G riggs’ estim ation, including in th e to ta l
w ill p ay about $11,000,000,000 before the
the certificates rem aining un p aid in ex
$4,600,000,000 p rin cip al is extinguished,
cess of the cash on hand. A t present, he
Mr. H ead said in New York.
said, th ere are ou tstan d in g receivers cer
H e believes F ran ce is well able to pay
tificates am ounting to $2,559,000. A fte r
th
e
am ount asked by the U nited S tates.
the new assessm ent is credited, $1,200,000
in receivers’ certificates were to be paid, H e a ttrib u te d the p resen t financial diffi
covering all which will m atu re by A p ril culties of P ran ce to the fa c t th a t the
peasants, who own one-half the w ealth of
15, 1927.
the country, are made to p ay only 10 per
cent o f the taxes.
Promoted to Cashier
M r. H ead advocated fu ll su p p o rt of
A t a m eeting of the directors of The
E uropean efforts tow ard economic re
N ehaw ka Bank, Nehawka, N ebraska, held
h ab ilitatio n , by A m erica, b u t he fav o red
recently, W a lte r J . W underlich, who has
the debt term s reached on th e basis of
been assista n t cashier fo r several years,
capacity to pay. H e pred icted th a t th is
was prom oted to cashier of the in stitu
country would go fa rth e r, if need be, to
tion. Mr. W underlich has h ad consider
help E u ro p e’s economic recovery.
able experience in th is line of w ork and
On the subject of A m erica’s own debt,
is in a position to handle his new w ork in
Mr. H ead said th a t it h ad been reduced
a capable m anner.
D. C. W est, the form er cashier who is fro m $26,000,000,000 to $19,000,000,000
now vice p resid en t will be connected w ith in the la st th ree years. H e is in accord
the bank as in the p a s t b u t will not have w ith S ecretary M ellon’s policy of paying
quite as m any duties to atten d to as be off the debt as quickly as possible while
the country is enjoying p rosperity. This
fore.
can be done w ithout im posing and undue
P ie ty is the rig h t perform ance of a b urden upon the country, he said, b u t not
common duty, as well as th e experience if dem ands f o r still g re a te r reductions in
taxes are g ranted.
of a special m oral emotion.— Beecher.
E F E N S E of the N ebraska bank
g u ara n ty law was m ade by K irk
Griggs, se cretary of the sta te de
p artm en t of trad e and commerce, in an
address to the Cass County B ankers
A ssociation a t P lattsm o u th recently.
Among the principal points in M r. G riggs’
insistence th a t the law had been a bless
ing to the state, were the follow ing:
“ This ag ric u ltu ral portion of our m id
dle w est has recently been under a cloud
of over-extension of credit, so overpow
ering th a t the circle about us com prising
Iow a, South D akota, W yom ing, Colorado,
K ansas and M issouri, has been sw ept by
a financial storm which has destroyed,
in g rea t num bers, th e ir banks, th e ir busi
ness and th e ir credit. E ven the fa ith of
th e ir citizens in th e ir financial in s titu
tions has been ruined and hundreds of
good, solvent banks have been w recked
by the w ithdraw al of deposits. B ut in
N ebraska, though the sky has been over
cast and we have fe lt the effects of the
m ighty blow, we have by com parison,
enjoyed a w onderfully bénéficient finan
cial peace— a peace brought about p ri
m arily by the fa ith of our citizens in the
ab ility of the g u a ra n ty law to p ro tect
them. The g u ara n ty law alone did not,
nor could have done it, had it not re
ceived the infusions of life blood from
the bankers who contributed so liberally
to it of th e ir money and tim e; and re
ceived su b stan tial benefits through the
efforts of the gu aran tee fu n d commission
and the departm ent.”
In tw enty-tw o m onths since he became
head of the departm ent, M r. Griggs said,
b e tte r banking was advised in tw enty-tw o
hundred conferences in his office, 25,000
le tte rs were w ritten, sixty-tw o banks were
elim inated w hich could not operate a t a
profit and were daily increasing the m en
ace to the g u ara n ty fu n d ; assessm ents
were secured of over $1,500,000 to p u t
o ther banks on a paying basis, thereby
benefiting the g u a ra n ty fu n d ; and tw en
P o etry is the language of feeling.—
ty -fo u r m ergers were brought about.
W inter.
D
Jo h n P. R obertson cashier of th e Cus
te r S tate B ank of Broken Bow, N ebraska,
has been appointed p riv ate secretary to
George W . N orris, sta te sen ato r of Ne
braska. Mr. R obertson served in govern
m ent w ork a t W ashington fo r several
years, and was also connected w ith the
land office a t Broken Bow.
N either rhym e nor reason.— S hakes
peare.
72
TH E
N O R T H W E S T E R N
B A N K E R
N o v e m b e r, 1926
NEBRASKA NEWS
YOUR STOCK YARD COLLECTIONS
P ro m p tn e s s g u a r a n te e d in h a n d lin g y o u r
L IV E S T O C K P R O C E E D S
Live Stock National Bank
Union Stock Y ards— Omaha
The B anking H ouse of A. W. Clarke,
Papillion, N ebraska, w ill rem ain in the
control of the Clarke fam ily, as the m a
jo rity stock was secured by M rs. I. D.
Clarke, daughter-in-law of A. W . Clarke,
when she purchased 215 shares a t p riv ate
sale, fo r a consideration th a t was n ot an
nounced.
The stock was sold in S arp y county
pro b ate court by the Omaha T ru st Com
pany, executor, as p a rt of the process of
liquidation o f the estate of A. W . Clarke,
who died M arch, 1926, in C alifornia.
H is son, the late I. D. Clarke, vice p resi
dent and fo r m any years active head of
the bank, died J u ly 19, 1926.
M rs. I. D. C larke has become president
of th e b an k ; K a rl C. Brow n was elected
vice president, and R obert F . Clarke, son
of the new president, rem ains as cash
ier. The nam e of the bank is to be re
tained.
The B anking H ouse of A. W. C larke
is a sta te b ank w ith a cap italizatio n of
$30,000, a surplus of $6,000, and deposits
am ounting to $550,000. I t was founded
in 1880. Mr. Clarke in his will had ex
pressed th e w ish th a t possession rem ain
in his fam ily, and p reference was given
M rs. I. D. Clarke in the bidding.
Edward F. Daugherty, atto rn ey fo r the
fed eral land bank and the fed eral in te r
m ediate credit bank of Omaha, has been
elected presid en t of th e N ebraska T itle
Association.
AT THIS bank, the com.x L p le te mechanism of a
world-wide banking service
is kept a living, human thing
by the personal relationships
existing between our officers
and our customers.
Every Banking Service
C entral Tr ust
C O M PA N Y OF IL L IN O IS
115
e/* .» « .--
ut LaSalle
<' A (Î O
Refinishing and new in te rio r equip
m ent of the Murray State Bank has been
com pleted, the in stitu tio n , w ith its new
m arble, m ahogany and g rill in terio r, be
coming one of the handsom est in Cass
county. A ctively in charge of the bank
are W. G. Boedecker, cashier, and L ud
wig H allas, assista n t cashier.
Officers of the Lincoln Joint Stock
Land Bank, headed by W . E. M arkley,
president, were reelected a t the annual
m eeting recently, and th ree new members
were added to the board of directors.
They are Olive W allace, Ben Simon, B.
R. H earson and P au l Good. C apital stock
of the bank was increased from $2,033,700 on Ju n e 30, 1925, to $2,711,400, the
presen t total. Loans increased fro m $30,709,500, Ju n e 30, 1925, to $36,148,240 on
Septem ber 30, 1926. P ro f. W . W . B u rr
was added to the executive com m ittee of
the bank, and Jo h n L. T eeters was elected
a vice p resident. '
Walter J. Wunderlich, fo r several years
assista n t cashier of th e N ehaw ka Bank,
has been elected cashier. H e succeeds
D. C. W est, who has been elected a vice
p resid en t of the bank.
Carl G. Stoll, assista n t secretary of the
N ebraska G u aran ty F u n d Commission,
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
N o v e m b e r, 1926
TH E
and C. M. Skiles, general counsel f o r the
commission, visited Sidney, N ebraska, re
cently.
John Hall, p resid e n t of the S tate B ank
of V erdon, has com pleted his fo rtie th
y ear of continuous service behind the
counter a t the bank. M r. H all is ch air
m an of the V erdon Red Cross, w hich has
raised more p e r ca p ita from the popula
tion of the tow n of a few hundred, than
any other N ebraska city fo r such p u r
poses as the recent F lo rid a h u rricane re
lief fund.
The Edison Bank of Edison, N ebraska,
and the F arm ers & M erchants B ank of
Edison, have m erged, reta in in g the name
of the la tte r in stitu tio n , and rep o rtin g
combined deposits of $350,000. C apital
stock of the new bank is $20,000, w ith a
surplus of $2,400. The officers of the
F arm ers & M erchants sta y as officers of
the enlarged b a n k : Ben Osborne, p re si
dent ; A ndrew Larson, vice p re sid e n t;
W. H . W illiam s, cashier. The re tirin g
officers of the E dison B ank are T. F . MacP rang, p re s id e n t; W . T. P ettigrove, vice
p resid e n t; J . M. Mohney, cashier.
Optimism over business conditions,
w ith forecasts of steadily im proving gen
eral p ro sp erity in the states of Iowa,
South D akota, W yom ing and N ebraska,
fea tu re d the annual convention in Omaha
N O R T H W E S T E R N
73
B A N K E R
of the se creta ry -trea su rers of th e n a
tio n al fa rm loan associations. A. F .
Beck, Ottum w a, Iowa, was elected p resi
dent of the association; F . S. McCaffree,
Scottsbluff, N ebraska, vice p resident, and
T. R alph M iner, M t. P leasan t, Iow a, sec
reta ry . Among the convention speakers
were Senator Plowell of N eb rask a; T. F .
Davis, M arion, Io w a; D ean E. A. B u rn ett,
N ebraska U niversity College of A gricul
tu re ; J. C. Underwood, New Underwood,
W yom ing; P. F . Luchsinger, Columbus,
N eb rask a; J . M. T apager, Lake Mills,
Iow a; A ndrew K opperud, O m aha; Tom
Costellor, Sioux F alls, S outh D ak o ta;
W illiam A ssm an, W inner, South D ak o ta;
T. R alph M iner, M t. P leasan t, Iowa,
Comes to Coleridge
T. E. B ohler has recently entered the
employ of the F irs t N ational B ank of Col
eridge, N ebraska. He was form erly con
nected w ith the F arm ers S tate B ank of
Belden, and has had considerable b an k
ing experience.
Becomes Cashier
C arl J. .Schneider has recently been
elected to the cashiership of the S tate
B ank of M inatare, N ebraska, coming
there from P lattsm o u th . Mr. Schneider
has been in the banking business w ith his
fa th e r a t P lattsm o u th , and is well experi
enced in his chosen work.
Elected President
M rs. I. D. Clarke, daughter-in-law of
the la te A. W . Clarke, p resid en t and
fo u n d er of the B anking H ouse of A. W .
C larke a t P apillion, N ebraska, has bought
the controlling in te rest in the in stitu
tion, and has been elected p resident. K .
C. Brow n was elected vice presid en t and
R. F . Clarke, grandson of the founder,
cashier.
Group Bankers Meet
A. J. Jorgenson, p resid en t of the A m er
ican B ank of McCool Ju n ctio n , N ebraska,
w ent to O m aha recently, w here he a t
tended m eetings of th e rep resen tativ es
of various b an k ers’ groups of th e state
in session there. M r. Jorgenson rep re
sents th e th ree county groups of banks,
com prising m em bership of banks of K im
ball, Deuel and Cheyenne counties. One
of th e purposes of the m eeting was fo r
approval by the general com m ittee of the
sta te b anking organization of resolutions
adopted a t recent group m eetings.
New Cashier
D avid A. Sw ayer is the new cashier a t
the Commercial B ank of G rant, N ebraska,
tak in g the place of W . J. Chase, who has
resigned and w ill leave fo r a trip to the
coast before locating elsewhere.
B u t y et the p ity of it, lago. O Iago,
th e p ity of it, lago.— Shakespeare.
A Sympathetic
Understanding
of the affairs of our correspondent
banks is the purpose of every officer
of The Omaha National Bank.
It tempers our business relationships
with a fine spirit of personal friendship.
T h e O m a h a N a t i o n a l Bank
W alter W . Head, P r e s i d e n t
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
74
TH E
A. I. B. Entertain
N O R T H W E S T E R N
B A N K E R
P hiladelphia, Pa., in Omaha on his re tu rn
from the A m erican B ankers A ssociation
convention a t Los Angeles.
The board of governors of the Omaha
ch ap ter of the A m erican In s titu te of
B anking gave a dinner a t the H otel Fontenelle recently honoring th e ir n ational
president, P au l B. D etw iler, assista n t
cashier of the P hilad elphia-G irard B ank,
New Bank Officer
N o v e m b e r, 1926
N ebraska S tate B ank of B ridgeport,
N ebraska, is moving his fam ily to B ridge
p o rt to m ake th e ir home, and will soon
build a m odern house. H e retain s in
te re st in the bank a t Papillion.
J. P . Spearm an, form erly of Papillion,
who has been elected vice p resid en t of the
Bankers Meet
The G rant, H ooker and Thomas Coun
ty B ankers A ssociation, an organization
having f o r its purpose a closer business
relatio n sh ip and b e tte r u n d erstan d in g of
the needs of th e ir p atrons, m et recently
a t the C itizens S tate B ank of Mullen,
N ebraska. This was the second m eeting
of the organization. W . D. K in g of
W h itm an is chairm an and Charles F in n e
gan of H yan n is is secretary.
Elected President
J . C. Meese is p resid en t of the new
S tate B ank of Ord, Ord, N eb rask a;
F ra n k S ta ra vice p resid e n t; Jo h n J. A l
len cashier, and J. M. Ivokes assista n t
cashier. In addition to these officials, A.
J . Auble, A. H. Jaskm an, G. H. Lange
and B. R. H ackel are also members of
the board of directors.
The Ord S tate B ank which the S tate
B ank of O rd succeeds, was th e oldest
bank in O rd and V alley.
The Midland Bank offers exceptional facilities for the transaction
o f banking business of every description. Together with its
affiliations it operates 2,250 branches in Great Britain and
Northern Ireland, and has agents and correspondents in all parts
of the world. The Bank has offices in the Atlantic Liners
Aquitania, Berengaria and Mauretania, and a foreign branch office
at 19 6 Piccadilly, London, specially equipped for the use and
convenience o f visitors in London.
MIDLAND BANK
HEAD OFFICE:
5
LIMITED
THREADNEEDLE STREET, LONDON, E.C.
Cashier Resigns
2
Affiliated Banks: Belfast Banking Co. Ltd., Northern Ireland; The
Clydesdale Bank Ltd., and North of Scotland Bank Ltd., Scotland
L *;
f
f
i
5
>«
51
K
R obert Linn, who fo r the p a st nine
years has been connected w ith the M ag
n et S tate B ank of M agnet, N ebraska,
first as cashier and la te r as vice p resi
dent, has resigned from his position.
Mr. and M rs. L ynn leave fo r Sioux City.
Mr. Lynn has an opening in view w ith
a nephew in Oregon.
Remodeling
1
I n
d
u
s
1
t r
C
i a
o
r
l
p
A
o
c
r
a
c
e
p
t i o
t a
c
e
n
|
ftj
C a p ita l & S u r p lu s O v e r $ 7 ,0 0 0 ,0 0 0
1
r
N e w
n
The Citizens State Bank of Wahoo, Ne
braska, is enlarging the lobby of th eir
bank building. The stairw ay on the east
side is being removed, which w ill give
them over fo u r feet o f additional space.
Y o r k
When in CHICAGO
E n jo y y o u r s ta y — a t t h e n e w
1
COLLATERAL
TRU
ft)
(The National City Bank o f N. Y., Trustee)
(x
ft)
ft)
®
ft)
T h e N o te s o f th is C o r p o r a tio n a r e r e g a r d e d b y a n a ti o n - w id e
b a n k i n g c lie n te le a s a p p r o p r ia te a n d a t t r a c t i v e in v e s tm e n t
f o r s h o r t te r m f u n d s . T h e y m a y b e o b t a i n e d u n d e r c u s t o m a r y
o p ti o n i n v a r y i n g m a t u r i t i e s b e tw e e n 2 a n d 1 2 m o n th s . C o m p l e t e i n f o r m a t i o n a v a il a b le o n r e q u e s t to a n y o f o u r o ffic e s.
C l o s e s t in th e c it y to o ffic e s , t h e a t r e s ,
C H IC AG O
N E W YO RK
S A N F R A N C ISC O
105 So. La Salle Street
100 East 42nd Street
225 Bush Street
>!<
Financing exclusively dealers o f
1
THE STUDEBAKER CORPORATION
OF AMERICA
|
____________________________
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
MORRISON
HOTEL
T a lle s t in th e W orld
46 S to r ie s H ig h
C o m m e r c ia l P a p e r O ffic e s
ft)
ftj
GOLD NOTES
s t o r e s a n d r a ilr o a d s t a tio n s
1944 O u tsid e R o o m s
E a c h w it h b a t h , r u n n in g
ic e
ü
w a ter
a n d s e r v id o r
L ow est R a tes
W rite or wire fo r reservations
N o v e m b e r, 1926
TH E
N O R T H W E S T E R N
officer. O ther officers of the bank are
Colin Thomson, assista n t cash ier; Syl
v ester T. S train , assista n t cashier, and
R. W. H otchkiss m anager of the bond
departm ent.
M innesota
Bank News
Goes to Mankato
Officers M innesota Bankers
Association
P r e sid e n t................... R. E. M acgregor
M inneapolis
V ice P resid en t..............A. G. W edge
Park R apids
T reasurer.......... ...........A. M. Schaefer
Jordan
R. E. MACGREGOR
P resid en t
Secretary........................ P. P . F ellow s
St. P au l
F. P . FELLOW S
S ecretary
Stop in Minneapolis
Heads Washington Bankers
The n orthw est is sound, agricu ltu rally
and economically, and is m aking consist
ent progress, in the opinion of eastern,
southern and m idw estern bankers and
financial w riters who visited M inneapolis
on th e ir re tu rn fro m the A m erican B ank
ers A ssociation convention in Los A nge
les.
The bankers gave th e ir views from
personal observation over several n o rth
west states. There were 140 in the p arty ,
traveling in a special train . They had
observed conditions in P o rtlan d , Ore.,
Longview, Tacoma, Seattle, Y akim a,
G randview and Spokane, W ash.; B utte,
Bozeman, M issoula and Glendive, M ont.,
and D ickinson, M andan, Bism arck and
Jam estow n, N. D.
The bankers agreed th a t the w est’s
commercial dependence upon the east has
passed and th a t the section is out of the
experim ental stage, w ith a course of safe
and sane economic and ag ric u ltu ral de
velopm ent charted fo r the fu tu re .
C. B. Hazelwood, vice president of the
A m erican B ankers A ssociation and vice
president of the U nion T ru st Co., Chi
cago, asserted th a t the n a tu ra l resources
of the east and middle w est now are very
largely in use, while the northw est has
“ thousands of acres of land, m illions of
fee t of lum ber and untold resources in
m ineral and oil still untouched.”
O thers voiced th e ir conviction th a t di
versification has p u t agricu ltu re on a
sound footing, and th a t the banks also
learned the value of diversified farm in g
in the depression of 1919 and 1920.
The visiting financiers were m et by a
delegation of M inneapolis bankers and
taken to the N icollet hotel fo r b rea k fa st.
A fte r a to u r of the city they w ent to St.
P aul fo r a luncheon a t the S ain t P au l
hotel.
H en ry A. Johnson, cashier of the Scan
dia S tate B ank, Lew iston, M innesota,
was nam ed p resid en t of the W ashington
County B ankers A ssociation a t th e an
nual m eeting recently.
O ther officers
elected fo r the coming year were : Ray
G. K ern of Lake Elmo, vice p resid e n t;
Eugene L etourneau of H ugo S tate B ank,
secretary -treasu rer.
Bank Changes Name
The nam e of the B ankers T rust and
Savings B ank, M inneapolis, has been
changed to the Peoples T rust and Sav
ings B ank when am ended articles of in
corporation were filed w ith the secretary
of state.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
75
B A N K E R
Raises Interest Rate
The A ustin N ational B ank of A ustin,
M innesota, announces it will pay 4.4 per
cent on deposits m ade in a Special Sav
ings D epartm ent.
There is a ce rtain line of business, such
as th a t of the building and loan con
cerns and certain lines of investm ents,
th a t have been able to pay a higher ra te
of in te rest th an the banks doing purely
com mercial b anking in the same commun
ity. The A ustin N ational has established
this departm ent, to be known as Special
Savings to handle such lines of business
th a t it w ill m ake possible the paym ent of
a higher ra te of in terest.
Speaks at Winona
J . C. Thomson of th e N orthw estern
N ational Bank, M inneapolis, was the
prin cip al speaker a t a m eeting of the
A m erican In s titu te of B anking a t W i
nona, recently. The in stitu te is th e edu
cational section of the A m erican B ank
ers Association.
Changes at Duluth
A t a recen t m eeting of the b oard of
directors of the A m erican Exchange N a
tional B ank of D uluth, M innesota, Isaac
S. Moore was elected to the presidency of
the in stitu tio n . M r. Moore was form erly
vice p resid en t of the bank. E d w ard C.
Congdon was elected chairm an of the
board.
A. C. W eiss was elected chairm an of
the executive com m ittee; J. D aniel M a
honey was prom oted from cashier to vice
p resid e n t; E. L. P alm er from assista n t
cashier to vice p resid en t and tru s t offi
cer, and W. Gordon H eg a rd t fro m assist
a n t cashier to cashier and assista n t tru st
W illiam D uncan, presid en t of the S tate
B ank of M ilroy, M innesota, has resigned
his position w ith th a t in stitu tio n , and
will sometime betw een now and the first
of the year, become associated w ith the
F irs t N ational B ank of M ankato, as vice
presid en t, and w ith the M ankato Loan
and T ru st Company in an executive ca
pacity.
Mr. D uncan has had more th a n tw entyfive years of experience in ru ra l banking
in M innesota, and is thoroughly ac
quainted w ith conditions in his locality.
H. M. Peyton Resigns
H. M. Peyton, fo r alm ost h alf a cen
tu ry the head of the A m erican Exchange
N ational B ank of D uluth, M innesota, has
tendered his resig n atio n as chairm an of
the board, due to his advancing age.
M r. P ey to n is 91 years of age, and is
one of the m ost prom inent business men
in D uluth. H e was born in New Y ork
state, and came to M innesota in the 50’s.
He became p resid en t of the A m erican E x
change N ational when it was first organ
ized, and held th a t position u n til a few
years ago, when he became chairm an of
the board of directors.
C. B. Mills, presid en t of th e M idland
N ational of M inneapolis, was the only
b anker from th e tw in cities to accom
pany the Crown P rin ce and P rincess of
Sweden from Chicago to the tw in cities.
W e alw ays knew Charlie could hobnob
with ro y alty —in fa c t he’s a prince of a
fellow him self.
Enterprising
An enterprising u ndertaker recently ad
vertised th at he had in his employ a young
lady embalmer and ’tis said th a t the young
fellows were ju st dying to meet her.—
Book of Smiles.
M idland
N ational Bank
and
T rust C ompany
i
Resources $22,000,000.00
t
MINNEAPOLIS
76
TH E
A Business Hindrance
A lthough exchange charges on checks
are disappearing, they are nevertheless
considered a nuisance and hindrance to
business and to consumers, the B anking
and C urrency Com mittee of the N ational
A ssociation of C redit Men m aintains in
a resolution ju s t m ade public. The parpaym ent of checks is advocated by the
com m ittee w hich points out th a t nearly
95 p er cent of all business transactions
are carried out through the m edium of
checks.
The com m ittee estim ates th a t about 90
p er cent of the banks pay checks a t th e ir
p a r value. The F ed era l R eserve System ,
N O R T H W E S T E R N
B A N K E R
of course, pays all checks in th is m anner
and recently won a suit, in the Suprem e
Court of the U nited S tates, which de
cided th a t nonm em ber banks could not
m ake a collection charge on a check
cleared through a F ed eral Reserve bank
fo r a bank which is a m em ber of the F ed
eral Reserve System .
“W hen the bank on w hich checks are
draw n p ay them a t p ar, th a t is, 100 cents
on the dollar,” the com m ittee states,
“w ider accep tab ility is attain ed , because
these p a r checks are quickly and w ithout
cost converted into money.
“ There are still quite a num ber of
sm aller banks w hich adhere to the ‘ex
N o v e m b e r, 1926
change charge’ plan in p aying checks.
They a re num erous enough to make col
lections slower and more difficult in m any
out-of-tow n tran sa ctio n s.”
Practice Better Than Theory
“ I had rath er talk of saving pennies and
save them than theorize in millions and
save nothing.”— P resident Coolidge.
Why He Was Fired
On T hursday he took a display sign off
a lady’s blouse and p u t it on a bath tub.
The sign read : “ How would you like
to see your best girl in this fo r $2.75?”
They fired him on F rid ay .—H am mermill Bond.
THE NATIONAL PARK BANK
of NEW YORK
Established 1856
214 B roadw ay
Uptown Offices
P ark A venue and 46th S treet
S eventh A venue and 32nd S treet
Banking
In All Its Branches
Com m ercial and T ra v e le rs ’ C red
it issued; C orrespondents in all
p rin cip al Cities in the W orld.
F o reig n E xchange bought and
sold.
C orpo rate
and
P erso n al
T ru sts ; Safekeeping of S ecuri
ties ; Collection of Income, In v e st
m ent
Service
fo r
C ustom ers.
Safes in our S afe-D eposit V aults
a t m oderate rental.
DIRECTORS
Charles Scribner
Richard Delafield
Francis R. Appleton
Cornelius Vanderbilt
Gilbert G. Thorne
Thomas F. Victor
John G. Milburn
William Vincent Astor
Joseph D. Oliver
Lewis Cass Ledyard, Jr.
David M. Goodrich
Eugenius H. Outerbridge
K enneth P. Budd
John H. Fulton
F rank L. Polk
Benjamin Joy
P earson
H otel
On the near N o rth Side
CHICAGO
HE pleasure of your Chicago
visit will be heightened if
The Pearson is selected as
your stopping place. It is located
just outside of the business, the
atrical and shopping district, yet
within pleasant walking distance;
its moderate rates, unexcelled
equipment and service, notably
good and reasonably priced food,
all make it a perfect base for
opera, concert, theatre and shop
ping expeditions. A 300-car fire
proof garage is close by.
T
SEND TODAY FOR
IL L U S T R A T E D FO L D E R
Capital, Surplus and Undivided Profits, $3 4 ,000,000
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
The Pearson is a block east of
the
intersection
of Pearson
Street and
N orth
M ichigan
Boulevard. Rates for one person
are from $3.50 to $5.00 a d a y ;
for tw o $5.00 to $7.00; tworoom suites $10.00 to $14.00.
Every room and suite w ith
private bath.
N o v e m b e r, 1926
TH E
Pledge Allegiance to
Guaranty Law
F ifty -fo u r N ebraska sta te bankers,
m eeting in Om aha recently, as represen
tativ es of fifty-five counties of the state,
expressed th e ir adherence to the sta te
bank g u ara n ty law and desire to cooper
ate w ith the g u a ra n ty fu n d commission
in ad m inistering it, by adopting the fo l
low ing resolutions and com m ittee re
ports :
“V arious com m ittees should be a p
pointed from active sta te bankers to as
sist in the general m anagem ent of sta te
banks now in receivership or un d er the
m anagem ent of the g u ara n ty fu n d com
mission. I t is resp ectfu lly asked th a t
the g u a ra n ty fu n d commission coordi
nate and cooperate w ith the N ebraska
B ankers A ssociation in this movement.
“I t is suggested th a t in connection w ith
sta te banks now or in the fu tu re , in
the hands of receivers or being operated
by the g u a ra n ty fu n d commission, the
sta te bankers in business w ithin a r a
dius of 40 miles of each such bank be
asked to appoint a com m ittee of five sta te
bankers to thoroughly examine the as
sets of the bank in question and th a t a
com plete record be m ade of all such as
sets, and such com m ittee shall ra te them
and give th e ir general opinion of such
assets to the g u ara n ty fu n d commis
sion. I t is understood th a t these com
m ittees shall not hin d er n o r im pair the
w ork of the g u ara n ty fu n d commission
b u t shall only be a m eans of assisting in
collecting the tru e value of the assets.
The secretary of the N ebraska B ankers
A ssociation shall arrange the above m en
tioned m eetings of sta te bankers.
“W e reaffirm our fa ith in the g u aran ty
fu n d law un d er which no depositor in
any N ebraska sta te bank has suffered
loss.
“W hereas experience has shown th a t
th ere has been a m ultiplicity of banks
in various sections of th e sta te which
has brought on unusual u n restric ted com
petitio n and which has in the p a st been
productive of a serious banking situ a
tion, it is hereby resolved th a t our laws
should be am ended to provide th a t sta te
bank ch a rters fo r com m ercial banks be
g ran te d un d er the follow ing co n d itio n s:
“In cities or villages of less th a n 1,500
in h a b ita n ts, no t m ore th a n one sta te
bank.
“In cities or villages of 1,500 o r more
and less th a n 3,500 in h ab itan ts, not more
th an two sta te banks.
“In cities of 3,500 or m ore and less
th a n 6,000 in h ab itan ts, not more th a n
th ree sta te banks.
“In cities of 6,000 or more and less
th a n 25,000 in h ab itan ts, not more th a n
fo u r sta te banks.
“I n cities of 25,000 or m ore inhabi
ta n ts, not m ore th a n six sta te banks.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
N O R T H W E S T E R N
B A N K E R
“B u t n o th in g herein shall be con
stru ed to lim it the num ber of coopera
tive banks which m ay be chartered.
“W e fa v o r such changes in our law as
w ill remove as f a r as possible the de
p artm en t of banking from political in
fluence.
“E xam iners should be chosen and v a
cancies filled by th e secretary of the de
p artm en t of trad e and commerce o r the
governor fro m a list of ap p lican ts first
approved by the g u ara n ty fu n d commis
sion a f te r such exam ination, in v estig a
tion or inquiry as m ay be deemed essen
tial. A chief b ank exam iner should be
chosen in like m anner who shall p e r
form all the duties prescribed by law
rela tin g to the exam ination of banks,
he to be delegated sufficient au th o rity to
m ake his w ork effective, u n d er the direc
tion and supervision how ever of th e sec
re ta ry of the d ep artm en t of trad e and
commerce.
“W e fa v o r fo r bank exam iners and
the chief bank exam iner an indefinite
ten u re of office w ith a m inim um salary
fo r exam iners of $2,400 p e r y ea r increas
ing 10 p er cent each y ear of service u n til
a m axim um of $4,800 per y ea r a t the
end of ten years. The salary of the
chief exam iner should be on a slightly
higher scale.
“A ny bank exam iner, including the
chief, m ay be removed by th e secretary
of trad e and commerce f o r cause, ju st
causes of rem oval to include am ong other
possibilities, violation of o ath of office,
fa ilu re to p erfo rm duties or incapaci
tatio n .
“The chief bank exam iner shall
prom ptly re fe r to the g u ara n ty fu n d
commission all exam iners’ rep o rts and
au th en tic in fo rm atio n w herein is shown
an im pairm ent of capital o r continued
violation of law, b ut no m em ber of the
commission residing w ithin 40 miles of a
I
PROGRESS
O ld-fashioned, stereotyped banking
m ethods do not ch aracterize this b a n k ’s
service to its b an k er custom ers. Com
plete facilities— th e quick adoption of
new ideas of m erit— flexibility, tolerance
and consideration instead of hard-asg ran ite conservatism — these are featu res
of this institution. W e are in line w ith
th e new spirit of business, and th e satis
faction of our custom ers is alw ays of p ri
m ary consideration.
,
|
f
■
77
THE STOCK YARDS NATIONAL BANK
THE STOCK YARDS TRUST & SAVINGS BANK
o f CHICAGO
78
THE
NORTHWESTERN
©
Iw(Eltas?Naitmudìkutk
of tti? ©tig of îfaui fork
57 B R O A D W A Y
Capital
.
.
. $ 40,000,000.00
Surplus and Profits .
36,764,122.23
Deposits (Ju n e 30, 1926) 813,425,869.65
O F F IC E R S
ALBERT H. WIGGIN
C h a irm a n of th e B o a r d
GATES W. McGARRAH
JOHN McHTJGH
C h a irm a n of th e E x e c u tiv e
C o m m itte e
P r e s id e n t
ROBERT L. CLARKSON
V ic e C h a irm a n of th e B o a r d
V ic e P r e s id e n ts
SAMUEL H. MILLER
CARL J. SOHMIDLAPP
R EEVE SCHLEY
SH ERR ILL SMITH
HENRY OLLESHEIM ER
A LFRED C. ANDREWS
ROBERT I. BARR
GEORGE E. WARREN
GEORGE D. GRAVES
FRANK O. ROE
HARRY H. POND
SAMUEL S. CAMPBELL
WILLIAM E. LAKE
M. G. B. W HELPLEY
V ic e P r e s id e n t a n d C a sh ier
WILLIAM P. HOLLY
S e c o n d V ic e P r e s id e n ts
ALEXANDER S. WEBB
FR ED E RICK W. GEHLE
GEORGE W. SIMMONS
EDW IN A. LEE
WILLIAM E. PURDY
GEORGE H. SAYLOR
M. HADDEN HOWELL
A LFRED W. HUDSON
JAMES L. MILLER
JO SEPH C. ROVENSKY
BENJAM IN E. SMYTHE
JO SEPH PULVERMACHER
LEON H. JOHNSTON
FRAN K LIN H. GATES
M. AIK EN
C o m p tro lle r
THOMAS RITC H IE
F o r e ig n a n d T r u s t D e p a r tm e n t F a c ilitie s
BANKER
November, 1926
bank so rep o rted shall have access to
this rep o rt.
“ We recom m end to the g u ara n ty fu n d
commission th e policy of fu rn ish in g to
sta te banks, full, com plete and detailed
in form ation as to all operations as soon
as the in te rests of the g u ara n ty fu n d
will not be jeopardized by such p u b
licity. I n any event fu ll in fo rm atio n as
to all d etails should be fu rn ish ed a t the
conclusion of each individual tra n sa c
tion.
“W e ask th e legislature to ap p ro p ri
ate fo r the b ureau of b anking a sum
n ot less th an the am ount of the fees col
lected from th e banks, tru s t com panies
and building and loan associations d u r
ing the biennium ending Ju n e 30, 1929,
or so much th ereo f as may be needed to
g eth er w ith any unexpended balance on
hand Ju n e 30, 1927, using as an esti
m ate the sum collected in fees during the
biennium ending Ju n e 30, 1926, thereby
creatin g a revolving fu n d fo r the use
of the departm ent.
“We fav o r am ending Section 6788 to
make the ra te 2 cents p er tho u san d in
com puting exam ination fees on resources
above five m illion, instead of reducing the
schedule to 1 cent as it now stan d s.”
A fine quotation is a. diam ond on the
finger of a m an of wit, and a pebble in
the hand of a fool.— Roux.
THE
HANOVER
N A T IO N A L
BANK
OF THE CITY OF NEW YORK
Established 1Ö5I
IN CEDAR R A P ID S
300 Rooms—250 with Bath
HOTEL M O N TR O SE
Fireproof
R a te s
$ 2 .0 0 to $ 4 .0 0
D IN IN G R O O M S
and
C O F F E E JSH O P
Capital
Surplus and Profits
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
$5,000,000
$26, 000,000
Fitley
H
otels
' COMPANY ^
THE
N o v e m b e r, 1926
NORTHWESTERN
held by M r. Rem ington and M r. G raham
was hold to resid en ts of T u ttle and vicin
ity. W . F . H artm a n and C. S. Pieschel
will continue as cashier and assista n t
cashier respectively.
North Dakota
B ank N ew s
Will Not Move
Officers North Dakota Bankers
Association
P resid en t.................................. H. T. Graves
V ice P resid en t and Chairman E x ecu
tiv e C ouncil.............. George H . L eick
Hebron
T reasurer.....................................J . E. D avis
Goodrich
H . T. GRAVES
P resid en t
S ecreta ry .......................W. C. M acfadden
Fargo
79
BANKER
W. C. M ACFADDEN
Secretary
R eports to the effect th a t the M aza
S tate B ank of M aza, N orth D akota, would
move to P e rth are incorrect, according to
officials of the in stitu tio n . The bank will
rem ain a t M aza and continue business as
usual.
NORTH DAKOTA NOTES
John H. Bradish has been appointed
Bank Nearly Done
The F irs t N ational B ank’s new build
ing in F argo, N. D., is nearin g comple
tion.
The Chevrolet M otor Co. has
opened d istrib u tio n offices in the build
ing.
Thompson Y ards, Inc., and the
W estern A djustm ent Inspection Co. have
also moved in. All te n an ts were in by
O ctober 15th. The bank itself will move
in betw een N ovem ber 1st and 15th. Lane,
P ip e r & Ja ffra y are to occupy No. 404.
A tto rn ey s who will have offices there in
clude: Young & B u rn ett, 502-504; M ur
phy & Niles, 601-602.
Fargo Banker Dies
A lexander B arclay Taylor, 74, of
F argo, N orth D akota, prom inent fo r
m any years in M asonic w ork and form er
cashier of the F arg o N ational Bank, died
a t his home there recently.
Meet at Mayville
The T raill County B ankers A ssociation
m et in annual session a t M ayville, N orth
D akota, recently. The m eeting was p re
sided over by George Stom m er, of M ay
ville, president. E arle R. Sarles of H ills
boro was secretary. M atters p e rta in
ing to the banking business were dis
cussed and a schedule of service charges
was agreed upon, w hich w ill be published
shortly.
E. O. Moe of G alesburg was elected
presid en t fo r the ensuing y ea r and Leon
ard H anson of Buxton, secreta ry -trea s
urer.
Those p rese n t a t the m eetnig w ere:
O scar Olson, P. B. P eterson, O. E. Rudru d and E. R. Sarles of H illsboro; E. O.
Moe, G alesburg; Joseph Lucken and K.
N. B runsdale, P o rtla n d ; P . L. Solberg,
A. M. Soliah and L eonard H anson, B ux
to n ; George Stom m er, M ayville.
Reelected
O. E. L oftus was reelected president
of the Clay County, N orth D akota, B ank
ers A ssociation a t the annual business
m eeting held recently in the New Colum
bia H otel, M oorhead. M em fred Nelson,
M oorhead, was reelected s e c re ta ry ;
George M. Comstock, M oorhead, was
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
elected vice p resident, and O. B. Rusness, M oorhead, was nam ed trea su rer.
The business m eeting follow ed a banquet
held a t 6 :30 p. m.
There were th irty bankers present.
A resolution adopted a t the m eeting,
copies of which w ill be sent to congress
men and U nited S tates senators, urges
passage of the H all am endm ent to the
M cFadden bill. I f passed, th e am end
m ent and bill would p ro h ib it branch
banking by n atio n al banks.
County Bankers Meet
The Cass County B ankers A ssociation
convened in annual m eeting recen tly at
the K . of P. hall in Casselton, N orth D a
kota. W . C. M cFadden, secretary of the
N o rth D ak o ta B ankers A ssociation, ad
dressed the g ath erin g and presen ted an
outline of th e ir w ork fo r the coming year.
Officers of the county association fo r
nex t y ea r were elected as fo llo w s: A. H.
P a rk h u rst, H u n ter, p resid e n t; F . R.
Scott, F argo, vice p resid e n t; B. A. Helland, A rth u r, se creta ry -trea su rer; John
W . Goodman of L eonard and A. L. Bayley of Alice w ere nam ed on the advisory
board.
Celebrates Anniversary
R obert E. B arron, p resid en t of the
F ir s t N ational B ank of M inot, N orth D a
kota, recently celebrated his tw enty-fifth
ann iv ersary in connection w ith th a t in
stitu tio n .
Mr. B arro n came from St. P au l as a
young m an in 1901, entered the employ
of the bank, and was soon m ade cashier.
H e w orked up to the presidency of the
Second N ational, which nam e has been
lately changed to the F irs t N ational.
Reorganized
R eorganization of the T u ttle S tate
B ank of T u ttle has been announced.
Jo h n T. Buck was elected p resid en t of
the board of d irectors and E. T. W urm
was nam ed vice president.
They replace P . C. Rem ington and J.
A. G raham of Bism arck, who had been
president and vice p resid en t respectively.
Stock in the in stitu tio n , which h ad been
cashier of th e N o rth ern S tate B ank of
G rand F ords, succeeding S. C. H en d rick
son.
H. L. Buck has been elected cashier of
the N ortonville S tate Bank, succeeding
Geo. Steele.
George T. Webb, L. P. McAneney and
May E. Hendricks are th e new ly elected
directors of the F ir s t S tate B ank o f M errico u rt, succeeding E. Magoffin, Lee
N o rth ro p and E. R. N orthrop. George
T. W ebb succeeds E. Magoffin as p resi
d en t; M ay E. H endricks succeeds E. R.
N orthrop as vice p resid e n t; and F red
H annem an succeeds L. P. M cAneney as
cashier.
— $—
J. H. Wishek, Jr., has been elected vice
presid en t and director of the F irs t S tate
B ank of W ishek, succeeding F . N. Gillis,
deceased.
— $—
H. M. Anderson has been elected cash
ie r of the R eservation S tate B ank of Makoti, succeeding R. A. Johnson.
Axel E. Bonstrom has been appointed
assista n t cashier of the S tate B ank of
Zahl.
F. B. Taylor has been elected cashier
of the M ountrail County S tate B ank of
Lostwood, succeeding E vender E lefson,
who resigned.
Leonard D. Watson has been appointed
bookkeeper and stenographer of the P io
neer S tate B ank of B ottineau.
A. O. Aune has been elected cashier of
the F arm ers S tate B ank of New Rock
ford, succeeding Thos. K jos, who has
been elected vice president.
— $—
. John G. Albers has been appointed
bookkeeper of th e F irs t S tate B ank of
S tanton, succeeding O tto W . M ueller.
A. L. Peterson has been elected p resi
dent and director of the S tate B ank of
Alice, succeeding S. G. More.
80
THE
Banks Merge at Selfridge
The S elfridge S tate B ank of Selfridge,
N orth D akota, has tak en over the re
sources and liabilities of the Citizens
S tate B ank, of the same city. This leaves
b u t one banking in stitu tio n in Selfridge,
b ut insures a strong, healthy operating
organization.
Officers of the bank now are W . H .
Ordway, p resid e n t; Segur R obertson,
vice p resid e n t; A. C. Rausch, cashier, and
C. F . G ilbertson, assista n t cashier.
Unwise Words in Italy
F asc ist Ita ly is speaking boldly, b u t not
too well.
NORTHWESTERN
BANKER
I t can be understood easily how sup
porters of B enito M ussolini, the dictatorprem ier, are w rought up because of an
attem p t to assassin ate II Duce.
I t is quite an o th er th in g fo r respon
sible spokesmen, including the d ictato r
him self, to im ply th a t F ran ce has, in
effect, aided and ab etted the effort to
kill him.
D em ocratic F ran ce has a rig h t to p ro
te st against such an indictm ent.
I t is tru e th a t a good m any political
refugees from Ita ly have found a home
on her soil. I t is equally tru e th a t m any
of these persons were forced to leave
th e ir own country by the M ussolini re
gime because they would n ot subscribe to
all its m ethods and policies.
W h at is to be em phasized is th a t it is
a tra d itio n of fre e governm ents th a t the
countries over which they rule shall not
b ar the politically persecuted.
There is not th e least evidence f o rth
coming th a t F ra n ce has done an y th in g
other th a n th a t.
To a tte m p t to create a suspicion th a t
she has encouraged p lo ttin g against F a s
cist Ita ly and M ussolini is, in itself, a re
flection on the Ita lia n spokesmen.
I t m erely suggests the absence of a
balance in I ta ly ’s fo reig n relatio n s.—
Indianapolis Netvs.
W hat happened when a prospector
gained a toe hold
«IT IT O W in th e w o rld d id y o u ever
JLJL b u ild th is to w n o n su ch a steep
hill?” ex claim ed a to u rist.
“W e ll, it is steep ,” adm itted P ete, th e
g u id e, “b u t y o u see th is to w n w as
started b y P rosp ector B ill. H e lik ed
th e n atu ral p r o te c tio n afforded by
th is c liff in th e days w h e n th e cou n try
w as w ild , so h e ju st c lim b e d u p here
u n til h e go t a to e h o ld a n d d u g
h im s e lf in .”
“P rosp ector B ill w as so g o o d n a tu red ,
a n d w a s s u c h g o o d c o m p a n y th a t
p e o p le ju st n a tu ra lly settled a rou n d
h im u n til th e to w n grew to its pres
en t size. A n d ev er sin c e P rosp ector
B ill got h is first to e h o ld , th is to w n
h as b e e n k n o w n for its h o sp ita lity .
S eem s lik e B ill’s sp irit p ervades th e
w h o le a tm o sp h ere.”
T w e n ty -se v e n years ago th e In ter
n a t io n a l L iv e S to c k E x p o s it io n
ga in ed its first to e h o ld in th e m in d s
o f th o se w h o d ea l w ith L ive Stock.
It h a s p r o s p e r e d a n d g r o w n u n t il
to d a y it is th e o u tsta n d in g e x p o sitio n
o f its k in d in th e w orld .
S in ce th e start, h o sp ita lity has reign ed
su p rem e at th e “In tern a tio n a l.” T h e
m e n a n d in stitu tio n s su p p ortin g th is
g ig a n tic L ive S to c k “ S p e c ta c u la r ”
h ave o p e n e d th eir doors w id e an d it
is a g en u in e p lea su re for visitors to
a tte n d . H o s p it a lit y is n o t a lit t le
resp o n sib le for its success.
T h is y e a r as a lw a y s, t h e D r o v e r s
B an k s, lo ca ted a lm o st at th e en tran ce
o f th e In te r n a tio n a l A m p h ith e a te r ,
b id y o u w e lc o m e . M eet y o u r frien d s
here. M ak e th e D rovers B a n k s y o u r
headquarters.
Exposition D a tes: N ovem ber 2 7 th — December 4th
R O V E R S
N A T IO N A L B A N K
TRU5T6'SAVINGS BANK
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
November, 1926
November, 1926
THE
NORTHWESTERN
BANKER
IOWA
SECTION
Officers Iowa Bankers
Association
P re sid e n t............................. A. C. Sm ith
C linton
V ice P re sid e n t......................John Sieh
Spencer
A. C. SM ITH
P resid en t
T reasurer.......................P. A . Schuetz
Law ler
S ecretary....................... Prank W arner
D es M oines
PR A N K W ARNER
Secretary
Merchants National in New Home
O N V E N IEN C E fo r the bank p a t
ron, the bank employe, and the te n
an t is the keynote of Cedar R apids’
new est and finest bank and office build
ing, th a t of the M erchants N ational
Bank, w hich fo rm ally opened its doors
to the public on O ctober 20th.
The building covers a ground space of
75 by 140 feet, and is tw elve stories in
height. The m aterial used is gray In
diana lim estone and M innesota granite,
designed in the Ita lia n R enaissance pe
riod of arch itectu re. The lo fty arches of
the first or ground floor are carried out
in general appearance in the upper p a rt
of the stru ctu re , w ith a cornice of strong
and individual design crow ning the
whole.
The fram ew ork of the building is of
heavy stru c tu ra l steel, supported on rein
forced concrete caissons, extending to
bed rock. The corridors have m arble
w ainscoting and tile floors. In p ra c tic
ally every detail fireproof construction
has predom inated.
N ine en tire floors are given over to
offices, the sixth, seventh, eighth and
n in th being especially adapted to m eet
the requirem ents of physicians and den
C
tists. A n o th er fe a tu re of the construc
tion is the th ird floor, which is laid out
fo r high-class shops. B eau tifu l plate
glass display windows open on the cor
ridor, and the shop in terio rs are fitted
w ith every m odern convenience.
E very office has an outside room, hav
ing a large Avindow sash of rolled steel
glazed w ith p late glass, and equipped
Avith V enetian blinds. The AvoodAvork
throughout is of A m erican Avalnut Avith
Avail decoration in harm onizing tones.
The tile floors and th e m arble Avainscoting of th e corridors m ake them excep
tionally lig h t and airy.
The M erchants N ational occupies tAvo
of the floors. Beside th e m ain banking
rooms on the first floor, it also uses the
basem ent beloAV.
The b ank lobby is in the cen tral p o r
tion of th e room, Avith th e tellers’ AvindoAvs, officers’ spaces, and other q u ar
ters frin g in g the sides, as is the modern
scheme. This m ethod is recognized as
the m ost convenient and economical a r
rangem ent y et devised fo r b ringing cus
tom ers into in tim ate contact Avith the
officers and employes of the bank, and
fo r aiding in the prom pt handling of
business betAveen the bank and its c u s
tom ers. The officers’ spaces are to the
rig h t of the m ain entrance. The desks
are grouped along a I oav m arble railing,
m aking it convenient and easy fo r the
bank custom er to chat w ith th e officers.
D irectly behind th is space is the p resi
d en t’s p riv ate office and conference room,
paneled in Avalnut and artistic ally deco
ra te d and finished. N ext to the officers’
spaces are the various AvindoAvs fo r d is
counts, collections and th e like. On the
opposite side of the room are the bond
d epartm ent, the savings and commercial
tellers and the statem ents Avindow.
The counters are of Rom an trav e rtin e
stone, fu rn ish in g the basic color scheme
of the room. The floors, w all treatm en t,
draperies and decoration of the ceiling
rep eat the so ft ivory tones of the tra v e r
tin e stone, presen tin g an ensemble th a t
is unusually harm onious and pleasing.
Above the counters, the m etal w ork is
of Avrought iron, modeled Avith infinite
care and finished by hand. The AvoodAvork is of native A m erican w alnut, in a
hand rubbed finish. A ll fu rn itu re is of
th e same m aterial.
The desks, counters and equipm ent are
all of special design and b u ilt of steel in
enam eled finish.
The vaults, the sa fe ty deposit d e p a rt
m ent, and the directo rs’ room, and a
d ain tily fu rn ish ed room fo r Avomen cus
tom ers, are situ ated in the basem ent.
The M erchants N ational B ank has
served Cedar R apids and com m unity
since 1881. I t Avas orgainzed a t th a t
tim e by R. D. Stephens, Avho became the
first p resid en t of the in stitu tio n . From
an em ployes’ pay roll of th ree individ
uals in 1881, the b ank noAV has in its
employ fifty-seven persons.
The p resen t officers of the M erchants
N ational B ank are Jam es E. H am ilton,
p resid e n t; P. C. F rick , E. E. Pinney, EdAvin H . FurroAv, H . N. Boyson, Roy C.
Folsom, S. E. Coquillette, and E. B.
Zbanek, Auce p resid e n ts; M ark J. M yers,
Interior view s of new banking home of the Merchants N ational Bank at Cedar Rapids
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
81
82
THE
NORTHWESTERN
BANKER
vice presid en t and cash ier; L. W . Broulik, assista n t cashier, and F re d W . Sm ith,
assista n t cashier.
The board of directors consists of H.
N. Boyson, H e rb e rt T. Cherry, Wm. H.
D unshee, P. C. F rick , E dw in H . F urrow ,
A. B. G arretson, H ow ard H all, Jam es E.
H am ilton, W . G. H askell, H orace G.
H edges, D. E. Howell, E. D. M cCartney,
A. N. Palm er, E. E. P inney, A. J. R am
sey, E. A. R unkle, W . H . S tark , Jo h n B.
T erry and L ucian T. W ilcox.
Bank Cashier Dies
L ars Christoffersen, cashier of the
F arm ers Savings B ank a t H am lin, Iowa,
an d .fo rm e r county reco rd er of A udubon
county, died a t his home in th a t town
a f te r a two w eeks’ illness w ith yellow
jaundice. Deceased, who was 65 years
old, was born in D enm ark in 1861, and
came to A m erica in 1883. H e located in
A udubon county in 1890 and in 1908 was
elected county recorder, serving two term s
in th a t office. In 1913, when the H am lin
bank was organized, he became its
cashier.
Banker Killed
M artin Mee, of the F irs t N ational B ank
of G ladbrook, Iow a, received a message
recently tellin g of the trag ic d eath of
Mr. and M rs. Charles A. Blossom and
M rs. Blossom’s niece, M iss A delane
A yres, when they were h it by a tra in
November, 1926
eight miles east of P ierre , South D akota.
M r. Blossom had both legs cut off and
was badly cut and bruised. All died a l
m ost in stan tly .
The rem ains of Mr. and M rs. Blossom
were brought to Belle P laine, Iowa, where
the fu n e ra l services were held. The re
m ains were laid by the side of Mr.
-Blossom’s first w ife and two sons in the
Belle P lain e cemetery.
Mr. Blossom was engaged in the b an k
ing business in G ladbrook about th irty five years ago b u t sold p a rt of his in
te re sts and w ent to Belle P laine. A ll
these years he has held stock in the F irs t
N ational B ank of Gladbrook and was one
of its directors f o r m any years.
Into New Quarters
The F arm ers Savings B ank of Massena, Iowa, has recently bought the build
ing form erly occupied by the M assena
S tate Bank. I t will be rem odeled and
fu rn ish ed new and occupied soon by the
F arm ers Savings Bank.
Bankers Picnic
V igilantes of S cott county, a group
of village blacksm iths, grocerykeepers,
butchers, bakers and farm ers, were rec
ently the guests of the S cott County
B ankers A ssociation a t the annual picnic
of th a t organization, held a t the C ountry
Club, D avenport, Iowa.
The vigilantes are the volunteers who
The
Greatest Known Defense
Against Bank Burglary
J i VYCcClintoc\ B a n \ ‘B urglar
~Alarm System
Provides Positive Protection
Against Burglary
Safeguards the financial in
terests of the Stockholders
and Customers.
Is the best and safest defense
against daylight holdup a t
tacks.
Com plete inform ation gladly fu rn ish ed
O. B. M
cC l i n t o c k
C om pany
T h e la r g e s t a n d m o s t co m p lete o r g a n iza tio n of it s k in d in th e w o r ld
HOME OFFICE AND FACTORIES
647 Santa Fe Ave.
475 F ifth Ave.
LOS A N G ELES
M IN N E A PO L IS, MINN.
NEW YORK
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
November, 1926
THE
g u ard the sm all tow n banks from rob
beries and holdups. So successfully have
they perform ed th e ir duties in Scott
county th a t there have been no success
fu l holdups of a country bank since they
were organized.
The vigilantes ta u g h t the bank robbers
a lesson never to be fo rg o tten in the a t
tem pted holdup of the Stockm en’s Sav
ings B ank of Long Grove a few years
ago. The b andits on th a t occasion, H a rry
H am ilton and Roy P urple, m et th eir
d eath in the a tte m p t and since then no
other holdups have been staged.
O rganized under the sponsorship of
the S cott County B ankers A ssociation,
the vigilantes indulge in reg u lar ta rg e t
p ractice and the w inners in these shoots
were presented w ith prizes a t the picnic.
NORTHWESTERN
BANKER
vacan t by the resignation of P . O. C hris
tianson, who has been identified w ith the
bank a num ber of years as assista n t cash
ie r and a board member. W . G. A lcorn
was elected a m em ber of the board of
directors.
Into New Quarters
A rchitects and officers of th e A m erican
Commercial & Savings B ank, D avenport,
Iowa, have worked out plans f o r the re
m odeling of the fo rm er Peoples L ight
Company building on the south side of
T hird S treet, betw een B rad y and M ain
and these plans will be ready fo r the le t
tin g of a co n tract in about two weeks,
P resid en t E d K au fm an n of the bank a n
nounced recently.
These rem odeling operations w ill be
com pleted about th e middle of Decem ber
and th e big bank will th en tra n sfe r its
business to the tem porary h eadquarters.
As soon as this is done th e w recking of
th e presen t bank stru ctu re on the south
w est corner of T hird an d M ain S treets
will im m ediately commence and the arc h i
tects estim ate th a t w recking operations
will be com pleted w ithin 60 days, which
will allow fo r actual construction on the
new $2,000,000 skyscraper and bank
building on T hird and M ain Streets, to
begin then, about the middle of F eb ru ary .
Silver Anniversary
Twenty-five years ago the O xford
Ju n c tio n Savings B ank began business
in O xford Junction, Iow a, succeeding the
O xford Ju n c tio n Bank, operated by J.
E. C arter. The paid-in capital a t th a t
tim e was $15,000. The assets of $25,000
have grow n to over $600,000, a rem ark
able grow th fo r a com m unity this size.
The bank was established in its present
location w ith F . H . Shim anek as cashier;
S. E. Rorick, of O xford M ills, p resid e n t;
and the directors chosen were A. S tra tilek, F ra n k B urda, H en ry K lahn, A.
Shim erda, G. A. W osoba, of O xford Ju n c
tion, S. E. R orick, of O xford Mills, and
H. H . P etersen, of Lowden. Today only
fo u r of the original officers and directors
are living. They are S. E. Rorick, of Ox
fo rd M ills; F ra n k B urda, now p resid e n t;
H . H . P etersen, vice president, and F . H.
Shim anek, cashier, who during the
tw enty-five years has retain ed the office
and has w atched the grow th of th is bank
ing in stitu tio n w ith considerable pride.
H en ry S him erda is now vice president.
The grow th of the bank is credited to the
confidence of the com m unity in its offi
cers and directors.
The success a ttain ed d uring the tw entyfive years of banking is indeed w orthy of
being celebrated a t the silver m ilestone,
and this big in stitu tio n is a real asset to
O xford Ju n c tio n and com munity.
Iow a bankers w ho
work w ith us know
that such instructions
in su re th e p r o m p t ,
in te llig e n t han d lin g
of e v e r y i tem of
Des Moines business.
Melcher Banker 111
W. L. B rasher, assista n t cashier a t the
F ir s t T ru st and Savings Bank, M elcher,
Iow a, is confined to his bed w ith an in
fection from bad teeth, th a t has created a
g oiter effect of the th ro a t glands. I t is
thought th a t quiet and p ro p er trea tm e n t
w ill soon overcome the trouble.
Elected Assisted Cashier
A nnouncem ent was made recently by
the board of directors of the V inton S tate
Bank, V inton, Iow a, th a t Cecil F ry was
elected assista n t cashier of th a t in stitu
tion. M r. F ry takes the place made
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
83
BANKERS TRUST CO.
B A N K
Cor. 6th and Locust Sts., Des Moines
Capital $1,000.000.00
Surplus $200.000.00
84
TH E
N O R T H W E S T E R N
B A N K E R
November, 1926
Will Represent Foreman Banks
SOUND BONDS
FOR
BANK
INVESTM ENT
S. G. H o lt has recently become con
nected w ith the F orem an T ru st & Sav
ings B ank of Chicago in the capacity of
resid en t m anager of the bond d ep a rt
m ent fo r the S tate of Iowa.
Mr. H olt was form erly connected w ith
W. A. H arrim an & Company, then w ith
The First National Company of Iowa
Hanford MacNider, President
MASON CITY
Security Building
Cedar Rapids
Valley National Bank Building
Des Moines
1876
1926
FI YOU H A V E ANY BUSINESS IN
DUBUQUE
W h y not entrust
it to
The Consolidated
JTational B a n \
whose unbroken record
of fifty years is a guan
anty of safe and satisfac'
tory service.
Consolidated National Bank
H alsey -S tu a rt & Company and now w ith
F orem an T rust.
H e is a g rad u a te of Finance Cpurse a t
the W ashington Lee U niversity, Lexing
ton, V a. H e has made an extensive study
of b an k investm ent program s and is
doing a g rea t service in helping the
analysis d ep artm en t of the F orem an N a
tional and F orem an T ru st & Savings.
Cherokee Banker Weds
Miss M abel Cowden, in stru c to r in L atin
in the Cherokee high school, and Mr.
L om e F . P ark er, P resid en t of the F irs t
N ational Bank, Cherokee, Iow a, were
u nited in m arriage recently a t the F irs t
P re sb y teria n church in Sioux City.
Mr. P a rk e r is one of Cherokee’s most
prom inent and successful business men,
presid en t of the F irs t N ational B ank and
an active w orker in all com m unity en ter
prises.
U N ITED STATES DEPOSITORY
Elected Director
DUBUQUE, IOWA
W. H. D aubendiek has recently been
elected to the board of directors of the
Iow a S tate B ank, W est Bend, Iowa. M r.
D aubendiek is one of the pioneer busi
ness men of the m iddle w est and has
been engaged fo r over 25 years in the
building and operation of telephone
p lan ts and systems.
J. K. D em ins’, President
Geo. W. Myers, V ice President
Jas. Mr Burch, V ice President
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
S. G. HOLT
Herman Eschen, Secretary
Jos. W. Meyer, Cashier
November, 1926
TH E
N O R T H W E S T E R N
B A N K E R
85
OFFICERS
Jam e s E. H a m ilto n , P re s id e n t
P . C. F ric k
V ice P re s id e n t
M ark J . M yers
V ice P res. & Cash.
E.
E. P in n e y S. E. C oquillette
V ice P re s id e n t
V ice P re s id e n t
E d w in H . F u rro w
E. B. Zbanek
V ice P re s id e n t
V ice P re s id e n t
H . N . Boyson
L. W. B roulik
V ice P re s id e n t A s s is ta n t C ash ier
Roy C. Folsom
F re d W . S m ith
V ice P re s id e n t A s s is ta n t C ashier
T h e M onument t o One'half a Century
Resources
$ 1 5 , 0 0 0 ,0 0 0
Service
C edar R a p id s’ larg est bank and one of Io w a ’s leading financial in sti
tutions has ju st form ally opened its beautiful new banking home.
Tow ering skyw ard story on story, the M erchants N ational new home
occupies an im p o rtan t p a rt in the affairs of C edar R apids. A fitting
m onum ent to p ast accom plishm ents; a prom ise of continued resource
fulness ; a symbol of perm anent stability. T hat is w liat the M erchants
N ational B ank m eans to Iow a banks and bankers.
W hile the M erchants N ational B ank has grow n trem endously it still
has not outgrow n personal contact w ith its clients—nor will it.
The surroundings and banking room conveniences alone will change—
this bank now as in the p ast offers com plete financial facilities, an d an
interested service to all Iow a banks and bankers.
T5he A I erchants N
a t io n a l
CEDAR RAPIDS, IOWA
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
o f
*
B ank
THE
86
NORTHWESTERN
BANKER
November, 1926
Buys New Home
The F id elity Savings B ank of M ar
shalltow n, Iowa, has recently purchased
th e bank building fo rm erly occupied by
the M arshalltow n S tate Bank, a t a price
of $70,000. The F id elity B ank expects
to move into th e ir new q u arte rs in the
n ea r fu tu re .
McKee Heads Home Savings
A t a recen t m eeting of the board of di
recto rs of the Home Savings B ank, Des
Moines, B ert McKee was elected p resi
dent of th a t in stitu tio n . H e succeeds
W a lte r B. Lutz, deceased. M r. McKee
An Added Value
An organization of forty-nine years’ standing, with
each of those years bringing a closer contact with Iowa
banks and bankers, has ingrained into the fibre of its
personnel a keen appreciation of banking ways and
methods.
It is this contact, this ability to adjust itself to the
viewpoint of others— still m aintaining fresh ideas with
in its own organization—th a t gives the Cedar Rapids
National Bank an added value as your correspondent
connection.
73he C edar R apids
N ational B ank
CED A R RAPIDS, IO W A
BEET McKEE
first came to the Home Savings as a clerk,
in 1892, and has steadily risen through
the ran k s to his present position.
C. M. W ay was elected vice presid en t
to succeed Mr. McKee.
Serves on Committee
F ra n k B. Y etter, vice p resid en t of the
Iow a N ational B ank of D avenport, has
been selected as one of th e th ree Iow a
financiers to serve on the com m ittee of
one h undred of th e A m erican B ankers
A ssociation. The purpose of th is com
m ittee is to w ork out a program reg a rd
ing the elim ination of branch banking.
V. 0. Cooper Resigns
OLD - TIME HOSPITALITY
The Spirit of Our Service
-O FFIC ER SR A LPH VA N VECH TEN
Chairman of th e Board
V A N V E C H TE N SH A F FE R
V ice P resid en t
GEO. W . SW AB
A ssista n t C ashier
GLENN M. A V E R IL L
P resid en t
CHAS. C. KTJNING
V ice P resid en t and Cashier
M A R V IN R. SE L D EN
A ssista n t C ashier
GEO. F. M ILLER
V ice P resid en t
PE T E R B A IL E Y
A ssista n t C ashier
B E R T H A M. W OLF
A ssista n t C ashier
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
V ernon 0 . Cooper, who fo r the p a st
few years has been cashier of the Redfield Savings B ank, Redfield, Iowa, has
resigned his position w ith th a t in stitu
tion on account of his health. M r. Cooper
feels th a t he should g et into outside work.
C. E. Long, who has been assista n t cash
ier of the bank fo r the p a st six m onths,
has been elected to tak e M r. Cooper’s
place as cashier. Jo h n R. H anes was
given the position of a ssista n t cashier.
Takes Up Insurance
C. E. Leach, who fo r the p a st fo u rteen
years has been connected w ith the F irs t
N ational B ank of F redericksburg, Iow a,
and m ore recently cashier of the in stitu
tion, has tendered his resig n atio n to the
November, 1926
THE
NORTHWESTERN
87
BANKER
board of directors. Mr. Leach has been
giving considerable atte n tio n to th e in
surance business during the p a st few
m onths and now expects to devote his
en tire tim e to th a t work.
With Wessling Services
A. E. D ickeson of C edar Rapids, Iowa,
has become associated w ith W essling
Services of L ytton, Iowa, and will spend
some tim e cu ltiv atin g New E ngland te r
rito ry f o r th a t organization, which is
now doing business in a m a jo rity of the
states. H e has already gone east to as
sume the duties of his new position.
Mr. Dickeson is a g rad u ate of the U ni
v ersity of Iowa, and a m em ber of the
A. E. DICKESON
D elta Chi and D elta Sigm a P i f r a te r
nities. Since gx*aduation, he has been
Over 1,000 Iowa Banks
Find It Convenient
to Have a
Des Moines Checking
Account
M a n y o f T h ese Like
O a r F riendly S ervice
------------ B
A
N
K
--------------
M em ber F ederal R e s e r v e
S ir e t e m
DES MOINES, IOWA
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
THE
NORTHWESTERN
BANKER
November, 1926
connected w ith the insurance agency of
M ason & D ickeson a t C edar Rapids, of
which his fa th e r is a member.
STRENGTH
The strength of the CENTRAL
STATE BANK is founded on
the bedrock of character, ex
perience and great financial
resources.
Its constructive service is being
used by a steadily increasing
number of leading business
enterprises and banks in Des
Moines and Iowa.
Changes in Des Moines
National Officiary
Jo h n H . H ogan resigned la st m onth
as p resid en t of th e Des Moines N a
tio n al Bank, to accept a position as
vice p resid en t of the C ontinental and
Commercial N atio n al B ank of Chicago,
d atin g November 1. H e is succeeded at
the Des Moines N ational by Louis C.
K u rtz, chairm an of the board of direc
tors who will take active charge of the
b an k ’s m anagem ent as the new president.
The position of chairm an of the board
will rem ain tem p o rarily unfilled.
T H E O L D R ELIABLE
C
S t a t e B
OF DES MOINES
e n t r a l
a n k
Banking, T ru sts and In vestm ents
Safe D eposit V a u lts
Member
Federal
Reserve
System
LOUIS C. KURTZ
r i?
Long and Close
Association
w ith the developm ent of
D avenport and the terri
tory tributary to it enables
the Am erican Commercial
and Savings Bank to serve
financial institutions and
bankers w ith unusual ad
vantage.
E xtensive affiliations as
sure prom pt collections.
VS
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
AMERICAN
COMMERCIAL &
SAVINGS BANK
s/*
D A V E N P O R T , IO W A
No other changes in the official person
nel of th e bank are contem plated.
M r. K u rtz has been connected w ith
banking circles in Des Moines fo r the
la st tw enty-five years, having become a
m em ber of the board of directors of the
Des Moines N ational B ank in 1915, and
chairm an of th e board in 1922.
P rio r to th a t tim e he was vice p resi
dent of the G erm an Savings B ank of Des
Moines, which was consolidated w ith the
Des Moines N ational B ank in 1915.
M r. K u rtz is also p resid en t of the
Louis H . K u rtz com pany, a wholesale
hard w are and plum bing firm, and is
p resid en t also of th e K u rtz R ealty com
pany.
M r. H ogan, who goes to Chicago, as
vice p resid en t of the C ontinental and
Commercial N ational, is one of Iow a’s
m ost p o p u lar bankers, and takes w ith
him the best wishes of hundreds of Iow a
frien d s.
November, 1926
THE
NORTHWESTERN
89
BANKER
H e Avas born in D allas connty, and
first sta rte d his banking career in 1904
in a clerical position w ith the M arq u ard t
Savings B ank of Des Moines. In 1909
he was made cashier of the G erm an Sav-
O F F IC E R S
Sound initiative, guided
by a thorough study of
each client’s requirem ents,
has achieved for the First
N ational a notable record
for length of service to
each of its many corre
spondent accounts.
We W ill C onsider It
G enuine P leasure to
Serve You
A .F. D A W S O N ,
JO E R .L A N E ,
IRVIN J.G R E EN ,
C X S C H M ID T ,
P.A.TORNQUIST ,
P ri/id p n t
V .President
C a s h ie r
AsstCashier
Asst Cashier
a
JOHN HOGAN
ings B ank, going w ith the Des Moines
N ational when th a t in stitu tio n absorbed
the G erm an Savings. In 1915 he was
made cashier of the Des M oines N ational,
and in 1919 was elected vice president.
H is election to the presidency of th a t
in stitu tio n came in 1922, which position
he has since held.
B oth George Reynolds, chairm an of
the board, and A rth u r Reynolds, p re si
dent, of the C ontinental and Commercial
N ational are form er Iow ans, and both
were form erly p residents of the Des
Moines N ational Bank.
FIRST
NATIONAL BANK
DAVENPORT, IOW A
Banker Honored
The employes of the Home Savings
Bank, Des Moines, honored B ert McKee
and Clifford M. W ay a t an inform al din
ner p arty a t the E a st Des Moines Club.
M r. M cKee was elected president of
the Home Savings B ank a t a m eeting of
the board of directors recently, and Mr.
W ay succeeded him as vice president.
Among those who attended the p a rty
were M r. and M rs. T. L. S utton, Mr. and
M rs. H . C. S tieglitz, Mr. and M rs. J. N.
Coffey, Mr. and M rs. C. A llen E vans, R ay
m ond Ellison, R einhold Carlson, Lewis
Lacy, C raig McKee and Ire n e Finn.
im m m
11AÌHS CH 3 CK 3 « laïïBltïilBA-i
äfiocK eaim w cA 'js© a h i >
O ? Q U A lir i AMD DiSTSMU’Tl&M
^
D ependability /*• of L ittle
wÊÈÊÊÈÈr.
iilliS iS ililS !
%
New Bank at Ventura
C. H. M cN ider announces the bank a t
V entura, capitalized a t $25,000, w ith $10,000 surplus.
The officers of the in stitu tio n a r e : C.
C. P alm eter, p resid e n t; J . Stork, vice
p resid e n t; L. Blees, cashier, and M r. Mc
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
A b ility W ith o u t
%
____________ ____
J Ä
W e H a ve B oth
^
90
THE
NORTHWESTERN
BANKER
D IR E C T O R S A N D
O F F IC E R S
November, 1926
N ider, C. C. P alm eter, M r. Stork, H . E.
P alm eter and W. P . F ish, directors.
The bank, which will open its doors in
two or th ree weeks, will be located in the
brick stru ctu re, fo rm erly occupied by the
S ta te B ank of V en tu ra.
Returns from Convention
S ta te m e n t of C o n d itio n
JU N E 30, 1926
RESOURCES
Time and Demand Loans
.
.$5,271,255.22
U. S. B o n d s ................................
343,519.70
Stock in Federal Reserve Bank
19,500.00
Real E state and Fixtures . .
86,201.95
Cash and Due from Banks and
U. S.............................................. 1,236,286.07
$6,956,762.94
LIABILITIES
C a p ita l.......................................... $ 300,000.00
S u r p lu s........................................... 350,000.00
Undivided P r o fit s ........................... 113,103.31
Reserve for Taxes and Interest
90,000.00
C i r c u l a t i o n ................................
300,000.00
D e p o s i t s ..................................... 5,803,659.63
$6,956,762.94
A LFRED G. SMITH,
Chairman
A LFRED C. SMITH,
President
G. L. CURTIS.
Vice President
President, Curtis
Companies, Inc.
G. W. DULANY, JR .,
President, Eclipse
Lumber Co.
President, Climax
Engineering Co.
H. W. SEAMAN.
Inland Waterways Advisory
Committee
M. J. GABRIEL,
President Gabriel
Lumber & Fuel Co.
J. PETERSON.
J. O. SHAFF,
Farmer and Live Stock
Dealer
B. M. JACOBSEN,
E. J. CURTIS,
Vice President Curtis
Bros. & Co.
C. A. ARMSTRONG,
Pres. C. F. Curtis
Company, Inc.
W. R. SMITH,
General Manager
Clinton Com Syrup
Refining Co.
A. P. BRYANT,
Manager of Operations
Clinton Corn Syrup
Refining Co.
F. H. VAN ALLEN,
V. P. and Sec’y.
J. D. Van Allen & Son
Inc.
H. S. TOWLE,
V. P. and Treas.
Towle & Hypes Co.
O. P. PETTY, Cashier
J. H. NISSEN,
Assistant Cashier
H. G. KRAMER,
Assistant Cashier
Established
1870
“ The n orthw est is m aking w onderful
strid e s,” states A. C. Sm ith, p resid en t of
the City N ational B ank of Clinton, Iowa,
and p resid en t of the Iow a B ankers Asso
ciation, who retu rn ed recently from the
A m erican B ankers A ssociation conven
tion by w ay of the n o rth ern route. H e
expresses him self su rp rised a t the rap id
developm ent alread y made by the cities
of the northw est and also by the large
n a tu ra l resources of th a t section still u n
developed.
H e states “ the diversification of its
activities and its v ast resources still u n
touched makes sure th e fu tu re of the
northw est.
I t seems to have passed
through its experim ental stage and to be
sound in d u stria lly and ag ricu ltu rally .
The bankers generally expressed a high
reg ard fo r th e sta b ility of investm ents in
the g rea t northw est. M ost of th e cities
are now tak in g care of th e ir own req u ire
m ents financially and seem independent
of eastern cap ital.”
The re tu rn tr ip from Los Angeles was
made by special tra in , leaving Los A n
geles, F rid a y , O ctober 8th, and m aking
stops a t San F rancisco, P o rtlan d , Long
View, Tacoma, S eattle, Spokane, B utte,
Bozeman and M inneapolis. The bankers
also detrain ed fo r a 40-mile autom obile
tr ip through the orchards of the Y akim a
valley. E leven special train s carried the
eastern and m idw est bankers to the Los
Angeles convention.
Consolidate
The Citizens N atio n al B ank of Royal,
Iowa, and the F arm ers Savings B ank of
Royal have consolidated th e ir business
u n d er the nam e of the Citizens N ational
B ank of Royal. The new in stitu tio n will
occupy the Citizens N atio n al building,
which w ill m ake very fine q u arte rs and
the business of th e new in stitu tio n can
be conducted th ere very successfully w ith
am ple room and a t m inim um expense.
The officers of the new bank a r e : J . H.
McCord, p resid e n t; H en ry Joh n so n and
J. O. Jones, vice p resid e n ts; E. N. Mc
Mullen, cash ier; W m. F lin d t, D. S. Jones,
T. W . Bailey and J . J. Schoelerm an, d i
rectors.
Directors Resign
City National Bank
CLINTON IOWA
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
D. D. Reynolds, vice presid en t of the
Union Savings B ank a t Union, Iowa, has
tendered his resig n atio n to th e board of
directors and W . H. Reynolds of S hef
field is also re tirin g from the board of di
rectors. W . S. M ason has been elected
cashier and A. J. Tisdale chosen assistan t
cashier.
Novem ber, 1926
THE
NORTHWESTERN
91
BANKER
Nominated for Director of
Federal Reserve
E. H . M aytag, presid en t of the Ja sp e r
C ounty Savings B ank of N ew ton, Iowa,
an d president of the M aytag Company
of the same city, has been nom inated fo r
a seat on the board of directors of the
F ed eral Reserve B ank in the seventh dis
tric t, located in Chicago, and including
the sta te s of M ichigan, Indiana, Illinois,
W isconsin and Iowa.
The election of directors fo r the F e d
eral Reserve B ank of Chicago falls the
Our Record Proves
We Possess
The Special Training
Experience
and Judgment
Necessary to Provide
Safe Investments
“AM Y o u r
M o n e y — A ll T h e
T i m e — O n T i m e 11
kjinumunvr
A t your service
in Eastern Iowa
E. H. MAYTAG
la tte r p a r t of November and is held by
mail. A ny m em ber bank has the rig h t to
m ake nom inations and said nom inations
m ust be held on or before N ovem ber 9th.
The ballots will then be m ailed to the
various members and the same m ust be
voted on or before the la st day of N o
vember. The new d irecto r will take his
seat the first of the new year.
Mr. M aytag would b rin g to the federal
reserve board a w ealth of successful ex
perience in the field of business as well
as in banking circles. The Ja sp e r County
B ankers association and all those who
know him in N ew ton and throughout the
sta te of Iow a are now presen tin g his
m erits as regards ability and successful
business experience to the banking f r a
te rn ity .
Recovering Nicely
C. F . Caldwell, cashier of the F irs t N a
tional B ank of E llio tt, Iow a, has con
sulted a specialist in Omaha regarding
his failin g health. The specialist advised
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
and
PEOPLES
TRUST*
SAVINGS
Western Illinois
BANK
^oplesTrust&iSavm^aiik
f
CLINTON, IOWA.
Remember rt this way ^“PEOPLES TRUST
THE STA TE CENTRAL SAVINGS BANK
K E O K U K , IO W A
C a p i t a l ..............................................................................................................................................$ 2 0 0 ,0 0 0 .0 0
Surplus and Undivided Profits ........................................................... ^9,574.16
Deposits .....................................................................................................
W IL L IA M LO G A N , P r e s id e n t
L . J . M O N T G O M E R Y , V ic e P r e s i d e n t
A S A P H BTJCK, V ic e P r e s i d e n t
C. J . B O D E , C a s h ie r
A L V I N K R A F T , A s s i s t a n t C a s h ie r
L . J , W O L F , A s s i s t a n t C a s h ie r
::
ACCOUNTS
OF BANKS AND
BANKERS INVITED
::
92
T li E
NORTHWESTERN
BANKER
him he was suffering from an inw ard
goitre and advised him to go to Rochester
fo r its rem oval, which he did. H e was
operated on O ctober 5th and la test re
ports say he is doing nicely, and was ex
pected home in about th ree weeks from
the date of his operation.
CAPITAL AND SURPLUS OVER $ 1 ,0 0 0 ,0 0 0 .0 0
Dwelle Resigns
C. H. Dwelle, cashier of the W o rth
County S tate B ank of N orthwood, Iowa,
has recently resigned his position. Mr.
Dwelle first came to the bank as book
keeper in 1902. H e expects to rem ain in
Northwood.
E s ta b lis h e d 1874
“W o rk
R eturns from V acation
D. J. Lewis, cashier of the W illiam s
burg Savings B ank, W illiam sburg, Iowa,
recently retu rn ed from a vacation spent
a t Lake Geneva, W isconsin. Mr. Lewis
rep o rts th a t he had a w onderful time.
w e l l d o n e is
w h a t d e te rm in e s r e s u lt s ,
The Other Side of the Picture
a n d th is
By T. D. L o n g , Manson, Iowa
is S e r v i c e ”
O F F IC E R S
CHARLES E. PERK IN S,
Chairman of Board
E. W EBBLES. President
J. G. WALDSCHMIDT, Vice Pres.
W. C. K U RRLE, Vice President
C. T. SIMMONS, Vice President
R. L. BUNCE, Vice President
L. M. WILSON, Cashier
ELMER RAUENBUEHLER,
Assistant Cashier
L. T. PANTHER, Assistant Cashier
F. J. NORTON, Assistant Cashier
RAY HUMPHREY,
Manager Bond Department
T. H. WILSON, Auditor
D IR E C T O R S
JOHN BLAUL, President John Blaul’s Sons Co.
WILLIAM BONGERT, Treasurer Dehner Cigar Co.
WILLIAM CARSON, President Boise Payette Lumber Co.
H. W. CHITTENDEN, President Chittenden & Eastman Co.
W. N. CHURCHILL, President Churchill Drug Co.
J. R. COPELAND, President Clinton Copeland Company
WALTER B. EATON, Vice Pres. Chittenden & Eastman Cm
W. F. GILMAN, Secretary Burlington Lumber Co.
HAROLD W. G RUPE, Vice Pres. Lagomarcino-Grupe Co.
G. G. H IG BEE, President Murray Iron Works
C. S. LEOPOLD, President Leopold Desk Co.
C. H. MOHLAND, Attorney
ROBERT MOIR, Capitalist
C. E. PERK IN S, Trustee
E. S. PH E L PS , Insurance
H. S. RAND, President Rand Lumber Co.
RAY R ED FERN , Farmer
HENRY RITTER. Retired
J. J. SEERLEY. Attorney
R A LPH E. SCHRAMM, J. S. Schramm Co.
E. W EBBLES. President
F I R S T S SH RANK
MEMBER
FEDERAL R E SE R V E S Y S T E M B U R L IN G T O N IA .
1
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Novem ber, 1926
The people of the middle w est and
especially the people of Iowa, have been
looking on the d ark side of th e p icture
so long th a t it seems to us it is tim e to
tak e a look a t the o th er side.
The fa c ts which we shall offer are ab
solutely reliable and g ath ered by u n p re
judiced w orkers.
W h at Iow a needs today is a change of
view point and the w ay to brin g this
about is to look a t the oth er side of the
p ictu re fo r a tim e.
There has been so much depressing talk
of la te about Io w a’s ills th a t m any p e r
sons outside the sta te who are n ot in
form ed on actu al conditions in Iow a have
been led to believe th a t som ething is fu n
dam entally wrong. Such a belief h u rts
Iow a’s credit and re ta rd s Iow a’s prog
ress. M oreover, m any Iow ans them
selves, in th e face of actu al conditions
of prom ise, are inclined tow ard pessi
mism. A n optim istic view is needed. W e
believe it is tim e to ta lk about Iow a’s
economic health.
Iowa, recently an acute sufferer from
the general economic depression, is stag
ing a “come-back.” C u rren t expressions
of confidence in the upw ard tren d of
commercial activ ity in Iow a are su p p o rt
ed by banking statistics. W ith prospects
of good h arv ests and favorable m arkets,
w ith increasing dem and fo r fa rm lands
and fo r the products of our m a n u fa ctu r
ing p lan ts, th ere is every reason to look
fo r the continued im provem ent of a g ri
culture and in d u stry th ro u g h o u t the
state.
S trik in g evidence of re tu rn in g p ro s
p erity is the fa c t th a t Iow a has p aid back
its governm ent loans more rap id ly th a n
any o th er ag ric u ltu ral state. F ed eral re
serve loans to Iow a banks, aggregating
$98,000,000 a t th e ir peak, have been re
duced to less th a n $7,000,000, and W a r
Finance C orporation loans to Iow a banks,
November, 1926
THE
am ounting to $24,000,000 a t th e ir peak,
have been com pletely w iped out. In ad
dition, p riv ate loans by outside banks,
am ounting to approxim ately $50,000,000
a t th e ir peak, have been reduced to less
th a n $7,000,000. A nd a t the same tim e
deposits in Iow a banks have been in
creasing. B anks and tr u s t companies
un d er sta te supervision rep o rted in
creased deposits of $9,378,000 betw een
D ecem ber 30, 1925, and A pril 12, 1926,
and in the same period they reduced th e ir
bills payable by $3,256,000, m aking a
gross im provem ent of $12,634,000. O ther
form s of indebtedness, including farm
loans, have also been reduced.
A g ricu ltu rally Iow a stands suprem e
am ong the states of the Union. I t em
braces some of the rich est soil on earth.
N inety-eight p er cent of Iow a’s land is
suitable fo r agriculture. A cre fo r acre,
Iow a’s fa rm land is w orth more th an th a t
of any other like ag ric u ltu ral are a in the
world. A lthough tw en ty -th ird in area
and fifteenth in population, Iow a ranks
first am ong the sta te s of the U nion in
production and value of corn, oats, hogs,
po u ltry and eggs, in the value of all fa rm
products, in the num ber of farm s having
pure-bred live stock, in th e num ber of
pure-bred horses, in the num ber and
value of all live stock, in the value of
fa rm im provem ents, in the percentage of
fa rm land im proved and in the to tal
value of all fa rm property.
A lthough prim arily an ag ric u ltu ral
state, Iow a is ahead of thirty-one states
of the U nion in industry. Iow a has 5,206
m a n u factu rin g establishm ents, w ith a to
ta l invested cap ital of $409,000,000 and
an annual production valued a t $745,000,000. These industries employ 106,000
persons, and th e ir annual payrolls
am ount to $90,000,000. M any of these are
immense p la n ts— some are am ong the
larg est of th e ir kind in the world. Our
neighbor cities of F o rt Dodge and W eb
ste r City have the larg est p lan ts in the
w orld fo r the m anu factu re of clay p ro d
ucts ; an o th er neighbor, Sioux City, has
the larg est cream ery and b u tte r fac to ry
and the larg est pure-bred live stock m a r
ket in the w orld; C edar R apids has the
larg est cereal fac to ry in the w o rld ;
Charles C ity has the largest m otor tr a c
to r fa c to ry in the w orld; D ubuque has
th e larg est sash and door fac to ry in the
w orld; B e tte n d o rf has the g rea test steel
car fa c to ry in the world. N ew ton has
the la rg est w ashing m achine fa c to ry in
the world. W e could nam e m any other
industries in which Iow a excels.
Iow a is forging rap id ly ahead as an
in d u stria l state. E very y ear brings new
facto ries to Iow a; every y ear existing
facto ries are enlarged to tak e care of
th e ir ever-increasing business. Iow a is
favored in in d u stria l developm ent by its
abundance of raw m aterials, its superior
tra n sp o rta tio n facilities, its trem endous
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
NORTHWESTERN
BANKER
Individual Service
Is the Policy Upon
W hich This Bank
W as Founded
J. Schouten, P resid en t.
E. E. Coombs, V ice P resid en t.
M. E. Tate, V ice P resid en t and C ashier.
John W. L eisy, V ice P resid en t.
R. J. M cCleary, A ssista n t Cashier.
S E C U R IT Y S T A T E B A N K
K E O K U K , IOWA
Correspondent banks are benefited
by our connections, long experience
and familiarity w ith conditions in
the Chicago area.
TH E NORTHERN
TRUST COMPANY
Capital, Surplus and Undivided
Profits, over $7,500,000
C orner LaSalle an d M onroe S treets
CHICAGO
93
94
THE
NORTH W E S T E E N
BANKER
Stabilizing Agriculture
(.L ittle Talks on Tiling, No. 22)
N E of the g re a t causes of
the p resen t very real dis
crepancy betw een the
p u rch asin g pow er of the farm er
and those engaged in other in
dustries is the marked increase
in the farm er’s cost of produc
ing each bushel or each ton of
his crops. In order to over
come this handicap the farm er
O
m ust g et larg er yields from
each hour of labor and each
acre of land devoted to crop
production. Tile D rainage is a
very real and efficient help in
accom plishing this end.
It
gives larger yields per acre and
reduces the labor required to
prepare the seed bed and culti
vate the crop.
T ile D rainage S tab ilizes A griculture by
R educing C osts and Increasing Incom es
M a so n C ity B rick a n d T ile C o m p a n y
312 D e n is o n B ld g .
M a so n C ity , Iow a
R ig id ly a d h e r i n g to
CHAS. SH U L E R , P resid en t
FR A N K B. Y ETT E R , V ice P res.
WM. H. GEHRM ANN, V ice Pres.
L O U IS G. B E IN , Cashier
H ERM AN STAAK, A sst. Cashier
i d e a l s e s t a b l is h e d
th ir ty - s e v e n y e a r s a g o ,
the o ffic e rs o f th e
Io w a N a t io n a l B a n k
o ffer to I o w a h a n k e r s
a so u n d , in te l li g e n t ,
a n d p r a c t ic a l s e r v ic e
fo r t h e i r c o r r e s p o n d
e n t a c c o u n ts
Iowa National Bank
Davenport, Iowa
KEEP YOUR OFFICERS
in c lo se r to u c h w ith y o u r sav in g s a n d c h ec k in g a cc o u n ts b y th e u se of o u r e x p e rt m a ilin g service.
O u r s p e c ia lty : D u p lic a tin g L e tte rs , A d d re ssin g , M atc h in g , F o ld in g a n d M ailing.
D E S M OIN ES D U PL IC A T IN G CO.
917-919 W E ST GRAND A V E.
D E S M O IN ES, IOW A
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
November, 1926
buying pow er and its rich and populous
te rrito ry .
Good tra n sp o rta tio n is one of Iow a’s
g rea t blessings. Few other states in the
Union can com pare w ith Iow a in th a t re
spect. There are today 9,837 miles of
railro a d in Iow a— enough to reach th irty fo u r tim es across the sta te east and west.
No point in Iow a is more th a n twelve
miles from a railro ad . T here is one mile
of railro a d in Iow a fo r every 246 persons
and fo r every 5.7 square miles of land area,
as com pared with one mile fo r every 442
persons and fo r every 11.9 square miles
of land area in the United States as a
whole. This extensive netw ork of ra il
roads, em bracing some o f the m ost effi
cient of A m erica’s g re a t tra n sp o rta tio n
system s, has been one of the g reatest
facto rs in the developm ent of Iowa, and
its capability of fu rth e r development
helps to insure fo r Iow a a prosperous f u
ture.
The p ro sp erity of Iow a is fu rth e r em
phasized by autom obile statistics. W ith
only 2.2 p er cent of the population of the
U nited S tates, Iow a has 3.3 p er cent of
its m otor vehicles. W ith only 3 p er cent
of the ru ra l population of the U nited
S tates, Iow a has 5.3 p er cent of its farm
owned m otor vehicles. F u rth erm o re, the
fa c t th a t Iow a ran k s n in th in the num ber
of autom obiles owned and eighth in the
value of autom obiles owned proves th a t
Iow ans rid e in h ig h er priced cars th a n
the average A m erican. Only one sta te in
the U nion— C alifornia— has m ore cars
per ca p ita th a n Iowa, and if all retire d
Iow ans now pitch in g horseshoes and sun
ning them selves on the Pacific coast
should drive back home Iow a would eas
ily o u tstrip C alifornia. Iow a has tw en
ty-five automobiles fo r every 100 p e r
sons com pared w ith fifteen autom obiles
fo r every 100 persons in the country as
a whole.
Iow a has th e larg est num ber of tele
phones p er ca p ita of any sta te in the
Union. There are 22 telephones in Iow a
fo r every 100 persons, while the average
fo r the U nited S tates as a whole is 13
telephones fo r every 100 persons.
Iow a’s w ealth is placed by th e U nited
S tates Census B ureau a t $10,512,000,000,
exceeding th a t of A labam a, M ississippi
and Tennesse combined. Iow a has $4,274,
of w ealth fo r every man, woman and
child in th e state, com pared w ith $3,048
fo r Ohio, $3,436 fo r New York, $3,187 fo r
P enn sy lv an ia and $2,918 fo r the U nited
S ta te s as a whole. On the o th er hand,
according to the la test governm ent s ta tis
tics, th e sta te debt of Iow a am ounts to
only $4.76 p e r capita, com pared w ith
$4.80 in Ohio, $16.87 in New York, $5.35
in P ennsylvania, and $8.72 in the U nited
States as a whole. In other words, our
per cap ita w ealth is about 46 p e r cent
higher and our p e r ca p ita sta te debt is
about 46 p er cent low er th an those of the
country as a whole.
Novem ber, 1926
THE
NORTHWESTERN
95
BANKER
Public confidence
over fifty years
—andstill “holding
the course.”
Combined Resources O v e r
$ 2 8 , 0 0 0 , 0 00 .0 0
; CAPITAL ^ « 3 0 0 0 0 0 0 \
OFFICERS
Hom er A. M iller
Clyde E. B renton
H . T. B lackburn
Geo. E. P earsall
A lbert J. K obertson
J . R . Capps
R. L. Chase, Jr.
Jam es F. H art
J. Burson
Sherman W . Fow ler
P resid en t
V ice Pres.
V ice P res.
V ice P res.
V ice P res.
C ashier
A sst. Cash.
A sst. Cash.
A sst. Cash.
A sst. Cash.
DIRECTORS
Geo. N . A yres
H . T. Blackburn
Clyde E. Brenton
H ow ard J. Clark
Gardner Cowles
J. H . Cownie
E. C. Finkbine
J. B. Green
Wm. C. Harbach
H . IiUthe
M M andelbaum
H om er A. M iller
Geo. E. P earsall
R alph H . Plum b
M Shloss
R. S totts
H . Thom pson
G M. V an E vers
IowaNationalbank
D e s M o in e s Savings Bank and Trust Co m pa n y
Iowa's L atest Bank - Des Moines - Sixth and Walnur
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
96
THE
Above all else, Iow a is fundam entally
sound because of the su b stan tial charac
te r of its citizenry. Iow a leads th e n a
tion in education. W e have the sm allest
percentage of illiteracy of any sta te in
the Union. A pproxim ately one out of
every eight citizens of Iow a has a high
school education and one out of every
sixteen has attended college. Iow as’ two
sta te in stitu tio n s of higher learning com
bined have a reg istra tio n of 11,969 stu
dents, com pared w ith 8,033 a t H arv ard
and 4,445 a t Yale.
Iow a possesses assets of which the rest
of the nation m ay well be envious. Like
all other states, it has its problem s, but
it is finding and will continue to find
solutions to them. Iow a is on the u p
grade, forging steadily ahead, and its f u
tu re justifies the fu lle st optim ism.
NORTHWESTERN
BANKER
A conservative estim ate of Iow a’s in
come fo r the y ear 1926, based upon actual
figures of the p a st two years is as fo l
lows : Income from g rain, hay, veget
ables and m iscellaneous farm products
$575,000,000. Income from live stock
alone is over $450,000,000. Income from
poultry and dairy products, $100,000,000.
This gives an income fo r th e farm s of
Iow a fo r the cu rren t y ear of ap p ro x i
m ately $1,075,000,000. O ur factories, a
large p a rt of whose products are sold out
side of the state, have an income of n e a r
ly $750,000,000.
W ith this v ast income, th ere is but
one road open fo r the people of Iowa, and
th a t leads to prosperity.
“Count Y our Blessings,
Name them one by one.”
November, 1926
Dies a t Sioux City
T. A. Black, 73, pioneer b an k er and
business m an of Sioux City, Iowa, n o rth
w estern Iow a and South D akota, died re
cently a fte r a b rief illness from h e a rt
disease. M r. B lack was presid en t of the
g rain exchange and the T erm inal E leva
to r Company, a directo r of the Sioux City
Stock Y ards Company, a fo rm er vice
p resid en t and d irecto r of the S u rety N a
tional B ank and an officer of the W ood
b u ry County B ank.
D isgustingly Slow
“Yes,” said the sw eet old lady on the
train , “this trip is a second honeym oon.”
“ Good g racio u s!” exclaim ed the movie
queen who was h er chance companion.
“Only your second!”
“ROLL OF H O N O R” BANKS
It is an honor to be listed among the H onor Roll Banks. It indicates that the bank has Surplus and U ndivided
equal to or greater than its capital.
Profits
Such distinction is accorded to the banks listed on this page. By careful management and sound banking they
have achieved this enviable position.
These banks will be especially glad to handle
any collections, special credit reports or other
business in their communities which you may
entrust to them.
Correspondence is invited.
IOWA
Town
Bank
Capital
Davenport
Union Sav. Bk. &
Tr. Co.
Ft. Madison Lee County Sav.
Lake Mills
Farmers State
Little Rock First National
Surplus
and
Profits
Town
Monticello
$1,250,000 $1,250,000 Soldier
50.000
56.000 Wallingford
25.000
38.000 Waterloo
25.000
26.000
Bank
Monticello State
Soldier Val. Sav.
Farmers Sav.
Pioneer National
F IR S T N A T IO N A L B A N K ,
d ir e c t o r s
B. P. SWISHER
Pickett, Swisher & Farwell
R. J. HOXIE
Secretary Waterloo Fruit &
Commission Co.
A. M. PLACE
Vice President
E. E. PEEK
Vice President Waterloo Bldg.
& Loan Association.
H. W. GROUT
Real Estate
C. A. MARSH
President
/Ó S S
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Capital
THE
First National Bank of Waterloo ii
to give yon the highest degree of
SERVICE, and do it promptly and efficiently
at all times. Fifty-eight years of steady con
servative growth enables this bank to extend
such service.
OFFICERS
C. A. MARSH, President
A. M. PLACE, Vice President
WILL A. LANE, Cashier
P. W. EIGHMEY, Assistant Cashier
O. Lk MORRIS, Assistant Cashier
Total Resources Over $ 2,900,000.00.
Surplus
and
Profits
$ 200,000 $ 225,000
.20,000
28,991
15,000
35,000
210,000
200,000
/<
^W aterloo,
oo, lo w a
DIRECTORS
W. W. MARSH
President Iowa Dairy Separa
tor Co., President Associated
Mfg. Co.
J. T. SULLIVAN
Lawyer.
J. O. TRUMBAUER
Vice President Farmers Loan
and Trust Co.
H. A. MAINE
President H. A. Maine & Oo.
WILL A. LANE
Cashier
T II E
November, 1926
97
N O R T H AY E S T E R N B A N K E R
INDEX TO ADVERTISERS
A
Page
A m erican C om m ercial
&
Savings
B a n k .............................................................. 88
A m e r i c a n B o n d & M o r t g a g e C o ......... 57
A m e r i c a n E x p r e s s C o ............................... 23
B
B a k e r - K e l l o g g & Co., I n c .......................
B a n k o f A m e r i c a .......................................
B a n k e r s T r u s t Co., N e w Y o r k ............
B a r t l e t t & G o r d o n , I n c ...........................
B e c k e r , A. G ..................................................
B o l d t , A. J. & Co...........................................
B r o k a w & C o ..................................................
B r o w n , C r u m m e r C o ..................................
B y l l e s b y , H. M. & C o ................................
57
39
28
50
5
59
41
58
40
C
C e d a r R a p i d s N a t i o n a l B a n k ..............
C e n t r a l S t a t e B a n k ...................................
C e n t r a l T r u s t Co. of I l l i n o i s ..............
C h a p m a n , P. W . & C o ................................
C h a s e N a t . B a n k .......................................
C h i c a g o T r u s t C o .........................................
C i t y N a t i o n a l B a n k , C l i n t o n ................
C l a s s i f i e d A d s ..............................................
C o n s o l i d a t e d N a t i o n a l B a n k ................
C o n tin e n ta l & C om m ercial N atio n al
B a n k s ............................................26 a n d
86
88
72
48
78
56
90
68
84
Page
F i r s t N a t i o n a l B a n k , M a s o n C i t y . . . . 82
F i r s t N a t i o n a l B a n k , O m a h a ................. 2
F i r s t N a tio n a l B a n k , S ioux C ity . . . .
2
F i r s t N a t i o n a l B a n k , W a t e r l o o .......... 96
F i r s t N a t i o n a l C o ........................................... 84
F i s h e r Co.......................................................... 37
F o r m a n , Geo. M. C o ................................... 53
F o r e m a n N a t i o n a l B a n k ..................... 31
F o s h a y , W . B. C o ........................................... 91
F o s k e t t , H. 1................................................... 52
H
I l l i n o i s - M e r c h a n t s B a n k .....................
I n d u s t r i a l A c c e p t a n c e C o r p .............
I n t e r n a t i o n a l L i f e I n s u r a n c e Co..
I o w a L o a n & T r u s t C o .........................
Io w a N ational B ank, D av en p o rt .
I o w a N a tio n a l B a n k , D es M oines
I o w a N a t i o n a l F i r e I n s u r a n c e Co.
E
E a g l e P e n c i l C o ......................................... 87
E m e r y , P e c k & R o c k w o o d ..................... 51
E p p l e y H o t e l s C o ......................................... 78
F
F e d e r a l S u r e t y C o .......................................
F i d e l i t y T r u s t Co., N e w Y o r k ............
F i r s t I l l i n o i s C o ............................................
F ir s t Io w a S tate T ru s t & Savings
B a n k ..............................................................
F i r s t N a t i o n a l B a n k , C h i c a g o ............
F irs t N ational B ank, D av en p o rt . . . .
60
39
29
92
30
89
O
O m a h a N a t i o n a l B a n k .............................. 73
I*
H a n n a , W . D .................................................... 55
H a n o v e r N a t i o n a l B a n k ......................... 78
H o a g l a n d , A l l u m & C o ............................ 56
. 100
.
.
.
.
.
74
60
87
94
95
P e a r s o n H o t e l ............................................
P e o p l e s T r u s t & S a v i n g s B a n k ............
P h ilad elp h ia-G irard N ational B a n k
P o lic y h o ld e rs N a tio n a l L ife I n s u r
a n c e C o ............................................................
P o l k , H a r r y & C o........................................
P r i e s t e r , Q u a i l & C u n d y ...........................
76
91
33
70
58
53
K
R o l l of H o n o r B a n k s .................................. 96
R o y a l U nion L ife I n s u r a n c e
C o .........................................................27 a n d 63
. 66
S
J
D e s M o i n e s D u p l i c a t i n g C o.....................94
D e s M o i n e s L i f e & A n n u i t y C o ......... 66
D e s M o i n e s N a t i o n a l B a n k ................ 99
D e W o l f & Co., I n c .................................... 55
D o h e r t y , H e n r y L. C o .............................. 52
D r o v e r s N a t i o n a l B a n k ......................... 80
Page
N a t i o n a l B a n k o f t h e R e p u b l i c ......... 24
N a t i o n a l C i t y C o ........................................... 42
N a t i o n a l L i f e A s s o c i a t i o n ..................... 65
N a t i o n a l P a r k B a n k .............................. 76
N o rth A m e ric a n N a tio n a l L ife I n
s u r a n c e C o ................................................... 64
N o r t h e r n B a n k N o t e C o ......................... 89
N o r t h e r n T r u s t C o...................................... 93
3
N o r t h w e s t e r n N a t i o n a l B a n k ...........
N o r t h w e s t e r n N a tio n a l L ife I n s u r
a n c e C o ................
62
G
G e n e r a l M o t o r s A c c e p t a n c e C o r p . . . . 59
G u a r a n t y T r u s t C o...................................... 3 6
43
D
N
J o h n H a n c o c k M u tu a l L ife I n s u r a n c e
C o ........... ........................................................... 67
K
K o e p p e , L a n g s t o n , L o p e r & C o......... 54
L,
L a n e , R o l o s o n & C o .................................... 54
L i v e s t o c k N a t i o n a l B a n k , O m a h a . . . 72
L i v e s t o c k N a t i o n a l B a n k , S i o u x C i t y 70
32
93
67
57
38
91
51
77
T
T h o m p s o n , R o s s & C o ................................. 46
T r u e , W e b b e r C o ........................................... 49
TJ
M
M c C l i n t o c k , O. B. C o ..................................
M a s o n C i t y B r i c k & T il e C o ..................
M e r c h a n t s N a t i o n a l B a n k .....................
M i d l a n d B a n k , L t d ......................................
M i d l a n d M o r t g a g e Co. ............................
M i d l a n d N a t i o n a l B a n k ..........................
M is so u ri S ta te L ife I n s u r a n c e C o ...
M i t c h e l l , H u t c h i n s & Co.........................
M o r r i s o n H o t e l ............................................
M u t u a l T r u s t L i f e I n s u r a n c e Co.........
S e a b o a r d N a t i o n a l B a n k .........................
S e c u r i t y S t a t e B a n k ....................................
S o u t h e r n S u r e t y C o ......................................
S t a n l e y , H e n d e r s o n C o ...............................
S t a t e B a n k o f C h i c a g o .............................
S t a t e C e n t r a l S a v i n g s B a n k ..................
S t e r n , L a w r e n c e & C o .................................
Stock Y ard s N atio n al B an k , C hicago
82
94
85
74
2
75
65
47
74
62
U n i o n T r u s t C o...............................................
21
V
V a l l e y N a t i o n a l B a n k ..............................
2
W
W e s s l i n g S e r v i c e s .....................................
W h i t e - P h i l l i p s C o .........................................
W h e r e t o B u y ................................................
W o l l e n b e r g e r & C o ......................................
34
25
68
45
the banking fraternity and sumbit same for publication. You do not have
“ A C A S H IE R ’S C H E C K ” for $3.00 is all th at is required to secure the
to agreewith us, or with anyone else. We learn things by an interchange
monthly visits of the Northwestern Banker for an entire year. Each issue
of ideas, and people with whom we disagree often prove valuable teachers.
contains from 108 to 200 pages of mighty interesting m atter pertaining to
We shall be glad to hear from you.
banks and banking interests in the territory covere dby the magazine.
NO P R O T E S T ” has ever been offered to th e statement th a t the
“ O U R C O R R E S P O N D E N T S .”
Every bank in the northwest is in
field coverd by the Northwestern Banker is the money-producing
vited to a place on this list. Send us items of local interest, tell us
section of the American continent, rich in hogs, cattle, corn, etc.,
about your bank and its growth, prospects, etc., also any other
and dotted with thousands of prosperous banks, all doing a good
financial news of interest to bankers in your section. We are
business, and the majority of them are readers of “ The North
always glad to head from our friends.
western.”
“ S IG H T D R A F T S .” We always carry a large “ Reserve” of good
“ S U R P L U S A N D U N D IV ID E D P R O F IT S ” increase very rap
will and additional service, and will promptly honor drafts made
idly with those banks whose advertisements appear regularly in
upon same by any bank. This department is for your special
the columns of this magazine.
Full information as to rates
benefit. I t may be made of very great benefit to your bank. Do
and our special service will be promptly furnished on appli
not fail to avail yourself of its privileges.
cation. Your business solicited and appreciated. The “ Bank“ A C L E A R IN G H O U S E .”
Our columns are a clearing house
has been twenty-nine years in its present field.
for all our readers. Express your v ie w on any topic of interest to
BANKtg,
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
98
THE
NORTHWESTERN
BANKER
His Heart Was All Right
T h rifty Sandy M cHoot of Peebles was
standing at the bar tossing off a glass of
whisky when Angus McTavish came along.
“H ave anither drink, Sandy,” said A n
gus.
“Na, N a,” returned Sandy, “I winna
hae anither, but you can p ay fo r this one,
if ye like.”—Exchange.
November, 1926
The Retort Courteous
Chicago Crime
A new ja ile r was astounded, on m aking
his to u r of the prison, to find one of the
convicts busily a t w ork a t his barred
window w ith a file.
“H e y !” ro ared the jailer. “W h at are
you doing w ith th a t? ”
“ Oh,” replied the p riso n er airily, “ju s t
cu ttin g ’ me in itials on one of the b ars to
kill tim e.”
Mistaken Identity
Variant No. 671,723
“ How come yo’ all in ja il again, Rastus ?”
“A case ob m istaken identity.”
“W ho dey mistake yo fo h ?”
“D idn’t mistake me foh nobody. Ah
mistook a prohibition agen’ fo r a good
customer.”— Trumbull Cheer.
“Poor Sandy had to give up smoking.
I t was ru in in g his nerves.”
“In d eed ?”
“Yes— he w orried so much over th e
possibility of someone asking him fo r
a m atch.”
The Natural Odor
D octor (noticing squalling pickaninny
on the floor)—“Mrs. Johnston, th a t baby
is spoiled, isn’t he?”
Mrs. Johnson—“No, sah, doctah, all
niggah babies smells dat way.”—Eagle
Quills.
What Will the Little Lady Have Next?
The cashier was busy w ith a lady de
positor, who asked the cashier to certify
five checks fo r her, none of which had been
made out in full. Taking up the first the
cashier asked w hat am ount it was for, and
afte r some hesitation the lady re p lie d :
“ Seventy-five dollars.”
The check was filled in and certified,
then the cashier took up the next one, re
peating his question. The lady hesitated
again and finally s a id :
“W hat I w ant is f o r you ju s t to ce rtify
the blank checks. Then I can fill in the
am ounts as I need to use them.”— W all
S treet Journal.
Excommunication
I t was a wordy fight, and the little man
with w hat looked like two pounds of sau
sages under his arm gave his p artin g shot.
“ The sooner,” he said emphatically,
“th at I never see your face again the bet
te r it will be fo r both of us when we meet.”
—S m ith ’s W eekly ( S idney).
A C H IC A G O C IT IZ E N T A K E S O UT H IS P U P
— Sykes in the Philadelphia E v e n i n g P u b l i c
L edger.
If He’d Only Had a White Flag
P arm er— W hat are you doing in the
orchard ?
Boy—Nothing, sir.
P arm er—A rent you try in g to steal some
apjoles ?
Boy—No, sir; I ’m try in g not to steal
’em.— B o y’s L ife.
“You were a t a te rrib le disadvantage
when you m et th a t bear w ithout your
gun,” suggested the sw eet young thing.
“Yes,” conceded the fam ous h unter.
“I was a stra n g e r in the country and
didn’t have any road m aps.”
“W h at are you d o ing?”
“R eading the w ant ads.”
“B ut you are looking in the female col
um n.”
“Well, ain’t my wife a fem ale?”—
Cracker.
Wild, Wild Grandma
Squire— “Did you send fo r me, m y
lord ?”
Launcelot— “Yes. Make haste. B rin g
me the can o p e n e r: I ’ve got a flea in m y
knight clothes.”— College Hum or.
“W ere the girls of y o u r tim e as w ild
as the girls of today, g ra n d p a ? ” asked
an inquisitive grandson.
“N ot then, they w eren’t,” replied the
old gentlem an as he looked a f te r g ran d
ma, who was ju s t step p in g out on a gay
roadhouse p arty .
Last Chance
“Did th a t young m an of yours propose
yet, A lice?” asked a fond m other.
“No, m other,” replied h er equally fond
daughter, “b u t I ’m sure he will to n ig h t.”
“W h a t m akes you th in k so ?”
“W ell— we’re going to be m arried to
m orrow .”
“W hat are you buying?”
“A therm om eter.”
“W hy? You won’t need a therm om eter
until summer.”
“ They’re always lower in w inter.”—
Phoenix.
Too Much for the Cop
His Honor’s Round
A stran g er was being shown through the
rooms of the Boston C hapter of G. 0 .
0 . F .’s.
^
“A nd is this the lodge room ?” he asked.
“Well, it is rath er lodge, of course, but.
the one next to it is much lodgah.”— R oyal
Gaboon.
Policeman
(producing
notebook) —
“Name, please.”
M otorist—“Aloysius A lastair Cholmondeley C yprian------ ”
Policeman (p u ttin g book aw ay)—“Well,
don’t let me catch you again.”—Eagle
Quills.
A certain u ltracan d id judge was a
guest a t dinner in th e new household
when the young w ife a s k e d :
“Did you ever try any of my biscuits,
Judge ?”
“No,” replied H izzonor, “I never did,
b u t I dare say they deserve it.”
Mr. Courtly (during lull in conversa
tion) : “A w ful pause.”
Mrs. Newrich (in d ig n a n tly ): “Well,,
young man, if you’d washed as m any p an s
as I have in my tim e your hands m ight be
a little rough, too.”—Lampoon.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
November, 1926
THE
NORTHWESTERN
BANKER
99
Early in the Eighties—
the Des Moines National Bank was estab
lished, and from the very beginning it
m ade friends am ong the bankers of Iowa.
This friendly spirit prevails now, just as
it did forty-five years ago, and through
these m any years there has been devel
oped, by earnest and constant effort, facil
ities
for handling
correspondent bank
business w hich we believe to be unsur-
DesMoinesNational Dank
Capital *1,000.000
6th £fVaimi t Sts.
"Cl
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
in e
W hite-
B an*"
LOUIS C. KURTZ
Chairman of the Board
JOHN H. HOGAN
President
H. R. HOWELL
VicePresident
ANDREW J. HUGLIN
Vice President
HERBERT L. HORTON
Cashier
CLARENCE A. D IE H L Asst. Vice Pres.
W ALTER J. ROBERTS Asst. Vice Pres.
R. H. COLLINS
Asst.Cashhier
EDWIN F. BUCKLEY
Asst. Cashier
GEORGE D. THOMPSON
Asst. Cashier
CLYDE H. DOOLITTLE
Trust Officer
TAMLIN S. HOLLAND, Manager Bond Dept.
A Comprehensive Underwriting and
Distributing Service
In our Bond D epartm ent here in
Chicago, more than a hundred peo
ple are engaged exclusively in serv
ing o u r in v estm en t custom ers. In
addition, local offices are maintained
lor resident district representatives
in Milwaukee, Minneapolis, D aven
port, and St. Louis. In all, twelve
out-of-town representatives are con
stantly serving the financial interests
of eight central states. Through our
officers we are in personal touch, at
all times, w ith investm ent affairs in
all parts of the country, as well as
abroad. A n d back of all is the bank
ing institution itself w ith its great
resources, its complete organization
and long financial experience.
Capital and Surplus • Forty-Five M illion Dollars
I l l in o is M
erchants
Tr u st C
o m pa n y
qA c o n s o lid a tio n o f I l li n o is T r u s t & S a v in g s B a n k ,
T h e ¿ M e r c h a n ts L o a n & T r u s t C o m p a n y a n d T h e C o rn E x c h a n g e N a t i o n a l B a n k
C H I C A G O
■M i
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
wmmmmm
@FedFRASER