Full text of The Northwestern Banker : November 1940, Forty-Fifth Year, Number 640

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H. L. H E M IN G W A Y
P re sid e n t, M e rca n tile -C o m m e rce B a n k & T r u s t C o m pan y, S t. L o u is
Seco n d V ic e P re s id e n t, A m e ric a n B a n k e rs A ss o c ia tio n


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THE NEBRASKA CONVENTION
Page 12

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M E E T IN G T H E T E S T
C orresp on d en t service freq u en tly co n fro n ts
its fa c ilitie s, e x p e r ie n ce and ju d gm en t.

tests that ch a llen g e

To m eet these situ ation s a

hank m ust k eep strictly in step with the tim es.
T h e M erchants N ational B an k has b een m eetin g such tests fo r fifty«<£ ^ ^

n in e years, co n sta n tly in crea sin g its co rresp o n d en t fa cilities through
the ex p e r ie n c e o f alm ost six decades.
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Northwestern Banker, published monthly by the De Puy Publishing Company, Inc., at 527 7th Street, Des Moines, Iowa.
Subscription, 35c per copy, $3.00 per year. Entered as second-class matter at the Des Moines post office. Copyright, 1940.


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Federal Reserve Bank of St. Louis

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J a m es E . H a m il t o n , C h a ir m a n
S. E . C oq u illette , P r e s id e n t
H. N. B oyson , V ice P r e s id e n t
R oy C. F olsom , V ice P r e s i d e n t
M ark J . M y ers , V . P r e s . & C a s h ie r
George F . M iller , V. P r e s . & T r. O fficer
M arvin R. S e l d e n , V ice P r e s i d e n t
F red W . S m it h , V ice P r e s id e n t
J o h n T . H a m ilto n I I , V ic e P r e s i d e n t
R. W . M a n a t t , A s s t. C a s h ie r
L . W . B r o u lik , A s s t. C a s h ie r
P eter B a il e y , A s s t. C a s h ie r
R. D. B r o w n , A s s t. C a s h ie r
O. A . K ea rn ey , A s s t. C a s h ie r
S ta n ley J. M oh rb a ch er , A s s t. C a s h ie r
E . B. Z r a n e k , B u ild in g M a n a g e r

Cedar R apids

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Federal Reserve Bank of St. Louis

4

THE CH A S E
NATIONAL BANK
OF THE CITY

OF N E W

YORK

Statement o f Condition, September 30, 1940

RESOURCES
C a sh a n d D u e f r o m B a n k s .....................................

$ 1 , 4 4 0 ,9 3 9 , 5 7 7 .8 1

U . S. G o v e r n m e n t O b l ig a t io n s , d ir e c t a n d f u l l y g u a r a n t e e d

1 , 0 4 5 , 4 2 4 , 5 8 7 .2 8

S t a t e an d M u n ic ip a l S e c u r i t i e s .........................

1 5 8 , 8 6 1 , 7 2 6 .8 5

S t o c k o f F ed era l R e se r v e B a n k .........................

6 ,0 1 6 , 2 0 0 .0 0

O t h e r S e c u r i t i e s .......................................................

1 7 4 , 3 9 8 ,3 7 2 .6 5

L o a n s , D is c o u n t s a n d B a n k e r s ’ A c c e p t a n c e s

6 2 5 , 5 7 9 , 4 7 2 .5 9
3 2 , 4 9 4 , 2 5 7 .8 0

B a n k in g H o u s e s ..............................................................
O t h e r R eal E s t a t e .................................................

8 , 1 0 3 , 8 2 1 .2 6

M o r t g a g e s ..........................................................................

1 0 , 4 3 9 , 7 2 0 .9 9

C u s t o m e r s ’ A c c e p t a n c e L ia b il it y

.

.

.

9 , 6 1 4 , 3 4 7 .6 2

.

1 1 , 1 1 7 , 6 7 5 .6 1

O t h e r A s s e t s ...................................................................

$ 3 , 5 2 2 , 9 8 9 , 7 6 0 .4 6

L IA B IL IT IE S
C a p it a l F u n d s :
C a p it a l S t o c k ..............................................................
Su r p l u s

..........................................................................

U n d iv id e d P r o f i t s

..................................................................

$ 1 0 0 , 2 7 0 , 0 0 0 .0 0

1 0 0 , 2 7 0 , 0 0 0 .0 0
3 6 , 5 3 4 , 5 4 7 .8 3
$

2 , 1 6 6 , 2 7 5 .8 0

R ese r v e fo r T a x e s , I n t e r e s t , e t c .........................
De p o s it s

3 , 2 5 1 , 3 4 1 ,9 4 6 .9 1

...................................................................................................

1 0 , 7 8 8 , 7 9 9 .1 3

A c c e p t a n c e s O u t s t a n d i n g .....................................
L ia b il it y as E n d o r ser o n A c c e p t a n c e s a n d F o r e ig n B il l s
O t h e r L i a b i l i t i e s ..........................................................................

2 3 7 , 0 7 4 , 5 4 7 .8 3
1 4 , 3 3 1 , 3 6 5 .4 8

R e se r v e fo r C o n t i n g e n c i e s .................................................

.

.

1 3 3 , 2 6 5 .6 6
7 , 1 5 3 , 5 5 9 .6 5
$ 3 , 5 2 2 , 9 8 9 , 7 6 0 .4 6

U n it e d S ta te s G o v e r n m e n t a n d o t h e r s e c u r itie s c a r r ie d a t $ 1 7 4 ,8 0 2 ,6 8 0 .0 0 a r e p le d g e d t o sec u r e
p u b lic a n d tr u s t d e p o s its a n d f o r o th e r p u r p o s e s a s r e q u ir e d o r p e r m it t e d b y la w .

M e m b e r F e d e ra l D ep o sit In su ra n ce Corporation

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5

C ooperation W ith
Local Banks in Financing
T h e D efense P rogram
I n c o n n e c t i o n w ith the N a tio n a l Defense P ro g ra m
m a n y co m p an ie s are being invited to bid on orders
n o t only for p r o d u c ts in their regular line b u t also
for p ro d u c ts th a t they are c o m p e t e n t to m a k e b u t
w hich may n o t be related to their n o r m a l p r o d u c ­
tion.

T his may require p la n t alterations or a d d i­

tions, installation of special machinery, and bring
a b o u t a need for additional w ork in g capital.
In c o m m o n w ith banks th r o u g h o u t th e c o u n tr y , th e
G uaranty T ru st C o m p a n y o f N e w Y o r k d esires to partici­
pate in th e fin a n c in g o f su ch req u irem en ts, th ro u g h c o o p e r ­
ation w ith lo ca l banks to th e e x te n t that its fa cilities m a y be
desired — n o t o n ly as a m atter o f g o o d b a n k in g but also b e­
cause o f its desire to aid in th e n a tio n ’s program .

W e w o u ld w elcome an o p p o r t u n i t y to discuss
with officials of y o u r in stitu tio n how o u r resources
an d faeilities m ay be utilized bv y o u r bank.

G u a ra n ty T ru s t C om pany
of N e w Y o rk
F IF T H

AVENUE

44T H

AT

I 4 0

BROADW AY

M A D IS O N

AVENUE

60TH

STREET

STREET

AT

Member Federal Deposit Insurance Corporation
Copyright, Guaranty Trust Company

of

V ew Y o rk , 1940

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6

PROTECTING

INVISIBLE

V A L V E S — NO.

18

The

INSURANCE STATEMENT
.. demands its place in the sun
'mm
S .B u t

for

safe

lending the In su r­
ance

S ta te m en t

m u s t also b e c h e c k ­
ed to g u a rd against

S O U N D lending calls for rigid inquiry

u nforeseen,

insur­

a b l e lo ss . T h i s i s a n

into every aspect o f the borrower’s financial

im p o rtan t phase of

position. T he alert lender — whether banker

cred it in q u iry .

or credit man — is always anxious to see that
his borrower is shielded from preventable loss.

.

4

P ro te c tio n

ag ain st

m aterial

d a m a g e is n e c e s s a r y
but not enough.
1 • J o n es

of

I n v i s i b le v a l u e s t o o

X Y Z Company

— p ro fits,

asks fo r credit,

com m issions, lease­

or a lo an o u t­

hold

in terests-

rig h t,

m ust

be

to

help

ren ts,

covered.

finance his p i c k ­
u p in business.
T h ere are th o u ­
sands

of

A clue to successful lending

bor­

ro w ers like h im .

2 . The
c ial

5 . W ise e xecutives

fin an .

have perio d ic chats

sta te m e n t

w ith a le rt lo c a l

of the p ro sp ec­

a g e n ts

tiv e b o rro w e r
is

chec ked

h en siv e

to

gauge

stability

and

c re d it

keep

insurance

coverage.
b etter
then,

w orthiness.

THE

to

abreast of com pre­

im m ediately

T h e y ’r e

e q u ip p e d ,
to

counsel

lo an applicants.

HOME

INSURANCE
COMPANY

NEW YORK
F I RE — A U T O M O B I L E — MARI NE

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Federal Reserve Bank of St. Louis

and

ALLIED

LINES

OF

INSURANCE

•

•

NORTHWESTERN

•

NOVEMBER

19 4 0
N U M B E R 640

FO RTY-FIFTH Y E A R

Oldest Financial Journal West of the Mississippi River

«

¿W-.
Am *

IN THIS ISSUE
Editorials
A c ro s s th e D e sk f r o m th e P u b l i s h e r ----------- ---------C L IF F O R D D E P U Y
Publisher

RALPH W. M O O RH EA D
Associate Publisher

H E N R Y H. H A Y N E S
Editor

J . S T U A R T D A V IS
Associate Editor

527 Seventh Street,
Des Moines, Iowa

Feature Articles
F r o n tis p ie c e ............ ..........................................
C o m p a ris o n o f I n s t a ll m e n t P a p e r ..........
T h e N e b r a s k a C o n v e n tio n ...........................
A t th e N e b r a s k a C o n v e n tio n — P ic tu r e s .
H ig h lig h ts A t H o t S p r i n g s ..... ...................
F .H .A . B o a rd o f D ir e c to r s — P i c t u r e s .......................................................................................
H e lp in g B a n k e r s , F a r m e r s a n d D e a le rs to M a k e M o n e y ............................................. L e g a l D e p a r t m e n t — A M is ta k e in A D e e d .................................. -..................... ------ -------N e w s a n d V ie w s ................................................................................................... C lifford D e P u y
M id -C o n tin e n t A ir lin e s in O p e r a tio n ..................................... .........................................-......
H o w Io w a B a n k s C a n A s s is t in th e D e fe n s e P r o g r a m ..- ........................ W . A . L a n e

15
16
20
22
23
67

Bonds and Investments
T h e M o n th ’s M a r k e t M a n e u v e r s .................................. .......... — ...........Ja m es H . C larke
Io w a I n v e s tm e n t B a n k in g N e w s ................................................................................................
N e b r a s k a I n v e s tm e n t B a n k in g N e w s ................. .......... ......... ...................-............................

25
28
31

Telephone 4-8163

State Banking News
•

•

N E W Y O R K O FFIC E
Frank P. Syms
V ic e President
505 Fifth A v e .

Suite 1 202

Telephone M Urray H ill 2-0326

M I N N E A P O L I S O F F IC E
J. A . Sarazen
Associate Editor
Telephone Hyland 0575

M o n ta n a N e w s .................
N o r th D a k o ta N e w s .......
N e b r a s k a N e w s ...............
O m a h a C le a r in g s ...
L in c o ln L o c a ls ..........
M in n e s o ta N e w s ...............
T w in C ity N e w s ....................................... .............. ............................................. ....................
S o u th D a k o ta N e w s ............................ ...............................................................................................
Io w a N e w s .................................................................... .................... — ...............................................
B r ie f Iow a. N e w s ........................................................................................... J ■ A. Sarazen

53
55
57
64

Savings and Loan
T h e Io w a C o n v e n tio n ..................................... ........................... ...................... J ■ S tuart Davis
P i c tu r e s a t th e Io w a C o n v e n tio n ------------------------------------- ----- — ............... .................

69
69

The Directors’ Room
A F e w S h o r t S to rie s to M a k e Y o u L a u g h

74

M EM BER
A u d it Bureau of Circulations
Financial Advertisers Association

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Across the Desk
From the Publisher

Uncle Sam's
Buried Treasure

If y °u are suffering from
insom nia over Uncle S am ’s
huge gold supply and fe ar
th a t an Axis victory will m ake our yellow tre a s­
ure good only fo r dental fillings, the recent edi­
to rial release on th a t subject by the fifty-four
mem bers of the E conom ists’ N ational Committee
on M onetary Policy will m ake you sleep better.
The Committee em phatically believes th a t
“ there is no way in which Germ any, thro u g h re ­
fusal to accept our gold, or otherw ise, can im pair,
m uch less destroy the ‘v a lu e ’ of the gold stock in
the U nited S ta te s ” .
The Committee sum m arizes in this fashion:
“ The German contention th a t in the fu tu re our
gold m ay not be acceptable in foreign exchange
because other nations will not w an t it for m one­
ta ry purposes presupposes two th in g s: (1) th a t
other nations can devise a satisfactory money
system th a t can be com pletely divorced from gold,
and (2) th a t some mechanism independent of the
use of gold for the settlem ent of in tern atio n al bal­
ances can be perfected. N othing in the long his­
to ry of money lends any significant support to
No. 1; and no genius has yet suggested a satis­
facto ry outline of the m echanics im plied in No. 2.
“ One of the devices of a to ta lita ria n govern­
ment, p a rtic u la rly th a t in Germ any, is to attem p t
to destroy the confidence of the people of a de­
m ocracy in th e ir m ajor social institutions. It
is possible th a t the Germ an discussions and
th re a ts re g ard in g the gold stock of the U nited
S tates are m erely this k in d of propaganda. Should
this be the case, it would be som ething like th a t
of the fox in A esop’s fable in which the fox which
h ad lost his tail attem p ted to persuade the other
foxes th a t tails were not only no longer in style
b u t useless and even dangerous. Or, to use the
w ords em ployed by S ecretary M orgenthau on
N orthw estern B anker N ovem ber 1940

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May 3, 1940: ‘ . . . The fact th a t some countries
find it possible to conduct th eir intern atio n al
trad e w ithout gold does not m ean th a t they p re­
fe r to do so any more th an people read in g by
candlelight do so because they p re fer candles to
e lec tricity ’. ”
Even more com forting is the intelligence and
financial wisdom represented in the list of fiftyfour mem bers who signed this com m ittee report.
They are economists from m ost of A m erica’s lead­
ing universities, financial w riters on g reat news­
papers, and the heads of some of the c o u n try ’s
larg est in d u strial concerns, a “ B rain T ru s t” th a t
should certainly command attention.

W e Can and
W e W ill!

A new spaper correspondent
recently back from B erlin
says th a t a prom inent Nazi
official told him there is only one w ay for the
U nited S tates to stop w orld dom ination by H itler,
and th a t is fo r A m erica to prove conclusively
th a t a Dem ocracy can w ork and m ake its people
happy.
W hether th a t statem ent is rig h t or w rong, the
fa ct still rem ains th a t we m ust m ake our De­
m ocracy w ork regardless of w hat D ictators may
say or do. The question rig h t here a t home is
how to face the facts realistically and do the job
intelligently, so l e t ’s look a t the record.
Since 1913 we have increased our over-all per
capita debt (F ederal, S tate and Local) from $60
to $325 per capita. Is th a t economic progress?
F rom 1933 to date, we have been com pelled to
spend more fo r E m ergency B elief th an H itle r’s
G erm any spent for arm am ent. I s n ’t th ere a solu­
tion fo r th at?
The average fam ily in A m erica to d ay spends
more in taxes th a n for house rent. W ill th a t

X

solve the problem of the so-called “ one-third illh o u sed ” ?
Uncle Sam owns one-fifth of the to tal land area
of the continental U nited States. W ould the
fram ers of the C onstitution ever have visualized
such a condition in a Dem ocracy?
In the present w orld crisis, we sim ply c a n ’t re ­
m ain blind to the realities of our own economic
shortcom ings, w hich we created and which we,
alone can remedy. They are larg ely the re su lt of
our philosophy of spending to create w ealth, a
b itte r illusion th a t has w recked countless nations
th ro u g h o u t history.
“ W ak e Up, A m erica,” should be more th an a
slogan, or a song. I t ’s a “ M U ST” . W e can m ake
Dem ocracy w ork in Am erica, and it will be alive,
virile and a hap p y form of governm ent long afte r
the D ictators of the w orld are m erely sham eful
nam es on the pages of history, if we have the will
to m ake it so.

Our 1940
Farm Income

Come w hat m ay on Novem^er fi^h , w hether Uncle Sam
rides the E lephant or the D on­
key fo r the n ex t four years, the sun is shining
b rig h tly on the fu tu re of the A m erican farm er.
B oth R epublican and D em ocratic candidates are
pledged to continue the present farm program or
a b e tte r one, w ith a continuation of governm ent
benefit paym ents.
B ut w h at is more im p o rtan t by far, is the fa ct
th a t both in to tal farm income for this year, and
in buying power, the A m erican farm er is finding
1940 one of the best years in history. Total farm
income for this year is estim ated a t 8% billion
dollars, w ith 750 m illions more from governm ent
benefits.
In farm buying power, it m ay prove to be the
best farm year since 1918.
Most of the m iddle-w estern farm states are
sharin g ra th e r equally in this ru ra l prosperity,
w ith the exception of certain local areas which
were too d ry this year. A nd certainly there is
no more inspiring view on the face of the earth
th a n the beauties of A utum n, on a farm in the
m iddle west, w here the red, brow n and gold of the
fallin g leaves provide the artistic background for
the h arv est of the farm crops.
Econom ic cycles come and go, w ars are
fo u g h t and the m oving finger of history w rites
its etern al script, b u t M other N a tu re continues
along her peaceful and productive w ay converting
seed into harvest.

And, nine billion dollars is a goodly income for
the A m erican farm er, plus a splendid “ design
for liv in g ” .

Country Banks Give
Better Service Than
i
» I
a
.
Distant Loan Agencies
3

Every

country

bfmker kll0ws kis

local cred it condi..
,
,,
tions better th an
any governm ental loan agency located a t some
d istan t point.
I t is the country b a n k e r’s business to know the
credit needs of his customers.
I t is the country b a n k e r’s d uty to keep inform ed
on the general business tren d in his com m unity,
and to know which individuals and corporations
are entitled to credit.
The country b anker knows these things b etter
th an any governm ent agency which m ay be set up
by W ashington politicians to com pete w ith him.
A.
G. Brown, head of the a g ric u ltu ral credit
d epartm ent of the A m erican B ankers Association,
in a recent statem ent said :
“ A ny advantage th a t country banks m ay pos­
sess over other lenders lies clearly in the field of
local credits. H aving the opportunity to m aintain
a close and continuing contact w ith local borrow ­
ers, country banks are b etter able to serve th eir
credit needs more u n d e rs ta n d in g ^ th a n any dis­
ta n t lending agency. Being located a t a point
w here credit is utilized and raising th eir loan funds
locally, country banks should be able to avoid
m uch of the overhead cost th a t attaches to the
adm inistration of organizations such as P ro d u c­
tion C redit Associations.
“ F ed eral L and B anks, F ed eral Interm ed iate
C redit B anks, and P roduction C redit Associations
will continue to extend th e ir facilities ju st in p ro ­
portion to the q u an tity and quality of sound credit
service rendered to w orthy farm ers by the com­
mercial banks of this country. As an officer of one
of these G overnm ent agencies recen tly stated, the
fu tu re p roportionate financing of the farm er by
institutions sponsored by the G overnm ent and by
commercial banks will be largely governed by the
aggressiveness of com m ercial b a n k s.”
A very im p o rtan t point w hich Mr. B rown
brings out is th a t if com m ercial banks are ag­
gressive in going a fte r the business in th a t com­
m unity, there will not be so m uch governm ent
financing.
In m eeting this governm ent com petition the
bankers m ust use intelligent publicity m ethods so
th a t the public m ay know th a t the banks are ready
to m eet th eir full com m unity credit requirem ents.

N orthw estern Banker N ovem ber Î9W

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Federal Reserve Bank of St. Louis


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11

Comparison of Installment Paper
held by

Banks and Finance Companies
More Than $2,700,000,000 Consumer Notes Purchased by
These Institutions in 1939

A LES finance com panies and b anks
in 1939 p u rch ased from re ta ile rs
m ore th a n $2,700,000,000 of con­
sum er in sta llm e n t notes secured by
liens on m erchandise p u rch ased on
tim e paym ents.
W illiam L. A ustin, d irecto r of th e
census, revealed th is fact in m aking
public th e re su lts of th e first com plete
census of sales finance com panies,
w hich covers th e o perations of th ese
com panies d u rin g 1939. T he re p o rt
also show s b an k holdings of re ta il in ­
stallm en t p ap er by states and for 115
cities.
T he p u rch ases of re ta il in stallm en t
pap er by sales finance com panies d u r­
ing 1939 am ounted to $1,990,283,000.
T h eir holdings a t th e beginning of the
year am ounted to $1,143,728,000 and
th e ir holdings at th e end of 1939
am ounted to $1,348,824,000. H oldings
of autom otive p ap er increased 25 p er
cent d u rin g 1939 and holdings of oth er
re ta il p ap er increased about 3 p e r cent
—an average increase of 18 p er cent.
The p u rch ases of consum er in sta ll­
m en t p ap er by com m ercial b an k s d u r­
ing th e y ear app ro x im ately $750,000,000. Of th is paper, com m ercial banks
held $541,243,000 at th e end of th e year.
Thus, th e re p o rt show s th a t com m er­
cial banks, w hich first confined th e ir
operations in th e consum er credit field
to lending m oney to sales finance com ­
panies, are now p u rch asin g in sta ll­
m en t p ap er directly to such an ex ten t
th a t a t th e end of 1939 th e y held 28.6
p er cent of th e com bined holdings of
sales finance com panies and banks.
The re p o rt show s th a t of th e 13,493 in ­
su red com m ercial banks, 10,381 h a n ­
dled re ta il in sta llm e n t p ap er on th e ir
ow n account. Of these, 4,102 w ere n a ­
tional banks; 919 w ere sta te m em ber
banks of th e F ed eral R eserve System
and 5,360 w ere in su red non-m em ber
banks. The Census B u reau revealed
th a t th e re are 1,086 sales finance com ­
panies, of w hich 927 are single-city

S

com panies w ith 941 offices and 159 are
m ulti-unit com panies w ith 1,607 offices.
T he la tte r account for 87 p er cent of
th e to tal business.
Of th e n early $2,000,000,000 of sales
finance com pany p urchases of retail
in stallm en t p aper arising from sales to
consum ers, 73.8 p er cent consisted of
autom obile pap er and 26.2 p er cent of
p aper covering o th er com m odities,
such as household appliances, oil b u rn ­
ers, radios, fu rn itu re , and o th er m er­
chandise. The re ta il in stallm en t paper
held by banks at th e end of th e year
was in practically th e sam e proportion
—71.6 p er cent autom otive and 28.4 per
cent o ther retail.
T he figures revealed by th e Census
B u reau cover only pap er sold to
finance com panies and banks and do
not include consum er indebtedness on
re ta ile rs’ books, financed by th e re ta il­
ers them selves. T he ex ten t of th is will
be show n in th e forthcom ing rep o rts
of th e R etail C ensus w hich w ill in d i­
cate th e am ount of m erchandise sold
on credit, both open account and in ­
stallm ent, and am ount of accounts re ­
ceivable on th e books of re tailers at
th e beginning and end of 1939, includ­
ing re ta ile rs’ holdings of in stallm en t
pap er separately.
A lthough m ost of th e p aper acquired
by sales finance com panies and banks
is p u rchased from retailers, w ho accept
it from custom ers in th e form of in ­
stallm en t notes or conditional sales
con tracts secured by purchase-m oney
liens on th e m erchandise bought on
tim e paym ents, a sm all proportion is
created by d irect loans to purchasers,
secured by th e m erchandise bought as
a re su lt of tran sactio n s so financed.
P ersonal or cash loans secured by
pledges of m erchandise already owned
by th e borrow ers are not included in
th e census, nor are loans for business
purposes or business equipm ent o th er
th a n m otor vehicles.
The census re p o rt review s th e h is­

to ry of th e sales finance business,
w hich sta rte d in 1915 w hen install­
m en t financing of autom obile sales
becam e a su b stan tial factor. H ow ever,
six of th e tw en ty largest com panies
an ted ate th a t period, th e first having
been organized in 1904 to finance in ­
stallm en t sales of pianos; tw o in 1908
to finance trad e receivables; one in
1910, and tw o in 1912.
T he business developed gradually to
its p resen t proportions coincident w ith
th e increasing o p p o rtu n ity to finance
retail sales on installm en ts—autom o­
biles first, th e n radios and electric
household appliances, th en o th er com­
m odities for personal and household
consum ption.
T he division of th e sales finance
business by states show s New York
leading w ith $165,796,000, followed
closely by Illinois w ith $157,928,000;
P en n sylvania w ith $146,063,000; Cali­
fornia w ith $136,798,000; Texas w ith
$125,103,000, and M ichigan w ith $122,543,000. Ohio is th e only o ther state in
w hich such p urchases exceeded $100,000,000.
Differences in state b an king laws
and restrictio n s on b ran ch banking are
reflected in th e relativ e holdings of
sales finance com panies and banks in
th e various states and in 115 principal
cities. In six states, California, Min­
nesota, N evada, New Mexico, V irginia
and W yom ing, th e holdings of finance
com panies and banks w ere practically
identical in am ount. In nine states,
Idaho, Iowa, K ansas, New Jersey, New
York, Oklahoma, Oregon, South Da­
kota and V erm ont, b an k holdings w ere
practically half th a t of sales finance
com panies. In Alabam a, Rhode Island
and South Carolina, b an k holdings
am ounted to 10 p er cent and less of
finance com pany holdings.
In th e cities of New York, San F ra n ­
cisco, San Diego, St. Paul, and E v an s­
ville, Indiana, th e holdings of such pa(T u rn to page 32, Please)
N orthw estern Banker N ovem ber 1940


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Federal Reserve Bank of St. Louis

12

The

NëhrCtskû

Convention

A Near-Record Attendance Turns Out tor Fiftieth
Anniversary Meeting in Lincoln
NE of th e larg est reg istratio n s
recorded by th e N ebraska
B ankers A ssociation in recen t
y ears signed on th e dotted line in
Lincoln last m onth, w h en n early seven
h u n d red and fifty b an k ers and th e ir
w ives atten d ed th e fo rty -th ird an n u al
convention of th e organization. S ec­
retary B illy H u gh es and his th re e
charm ing a ssistan ts w ere all sm iles as
th e y acknow ledged th e m any ex p res­
sions of co n g ratu latio n on an o u t­
stan d in g m eeting and a colorful p ro ­
gram .

O

Carl D. Ganz, cashier of th e F a rm ­
ers and M erchants B ank, Alvo, w as
nam ed p resid en t of th e A ssociation
for th e com ing year, succeeding C. C.
N eum ann, w ho has closed a m agnifi­
cent year in th a t office. On th e execu­
tive council, to assist Mr. Ganz in his
duties, are A. 1 . Coad, rep resen tin g
Omaha; B yron D unn, rep resen tin g
Lincoln; R. F. Clarke, Papillion, re p re ­
sen tin g G roup Two; E. W. R ossiter,
H artin g to n , and H. H. Ostenberg,
Scottsbluff, rep resen tativ es at large.

A t the beginning of th e concluding
session, N ebraska m em bers of th e

A m erican B ankers A ssociation, w ith
Ray Ridge, Omaha, presiding, held a
sh o rt business m eeting to elect Ne­
b rask a A. B. A. rep resentatives. H enry
Schneider, P lattsm o u th , w as nam ed
m em ber of the nom inating com m itte,
w ith C. C. N eum ann, Oakland, as al­
tern ate. O ther A. B. A. officers nam ed
w ere O verly Peck, Lincoln, N ational
b an k division; E. W . R ossiter, H a rt­
ington, State b ank division; T. F.
D avis, Omaha, T ru st division; and
H enry H ovey, Omaha, Savings ban k
division. These m en w ere all nam ed
vice p residents of th e ir respective di­
visions.
W. J. Cameron of th e F o rd M otor
Com pany, w ho is w ell-know n to m il­
lions of radio listen ers as th e reg u lar
sp eak er on th e Sunday evening F ord
radio program , w as one of th e h ead ­
liners on th e N ebraska convention
program . He spoke in th e evening at
St. P a u l’s M ethodist Church, and w as
introduced by T. B. Strain, presid en t
of th e C ontinental N ational B ank of
Lincoln. Mr. Cam eron said th a t
A m erican business has th e job of
building th e A m erican economy,
pointing out th a t th ere is w ar in Eu-

J
rope today because of th e failure of
th e w ar m akers to provide bread for
th e ir people. Speaking p a rticu larly of
th e A m erican economic situation, Mr.
Cam eron said, “B usiness still pays
the bill in th is rio t of economic m al­
practice. The p a tien t in bed pays
th e quack doctor.”
E. N. Van H orne, form er N ebraska
b an k er and now executive vice p resi­
den t of th e A m erican N ational B ank
and T ru st Com pany of Chicago, w as
elected p resid en t of th e P ast P resi­
d e n ts’ group of th e N ebraska B ankers
A ssociation a t th e Lincoln convention.
R. H. Barber of Boone, Iowa, w as
nam ed vice president. Mr. Van
H orne atten d ed the convention to­
g eth er w ith Mrs. V an H orne, and w as
planning to spend a w eekend duck
h u n tin g in N ebraska before re tu rn in g
to Chicago.
Fred C um m ings, rep resen tin g th e
D rovers N ational B ank of Chicago at
th e Lincoln m eeting, rep o rted th a t
F rank Covert, a ssistan t cashier, and
w ell-known, p articu larly in Iowa and
N ebraska, recen tly had his tonsils re(T urn to page 52, Please)

A T THE N E B R A S K A C O N V E N T IO N
P ic tu re d a t th e r ig h t a re a n u m b e r of th o se a tte n d in g th e r e ­
c e n t N e b ra s k a B a n k e rs A sso c ia tio n c o n v en tio n . B e a d in g fro m
le f t to rig h t, th e y a re, 1— Fred Cummings, D ro v e rs N a tio n a l
B a n k , C hicago. 2— T he b a n k e rs in th is p ic tu re a re m em bers of
th e F ifty -Y e a r Club. T h ere w ere n in e o f th em a t th e 1940 con­
v e n tio n , of th e fifte e n to ta l m em bers. I n th e p ic tu re is C. W.
R obinson, L in c o ln ; H. D. M iller, S ta n to n ; J. F. Coad, O m aha;
W. H. M cDonald, N o rth P l a tt e ; H. C. V an H orne, P a w n e e C ity ;
L. J. K urdna, W ah o o ; Chas. K. H art, K e n e s a w ; J. W. O’N eil,
O m ah a; and H. H. W aite, B e a tric e . 3— C. C. Neum ann, im m e­
d ia te p a s t p re s id e n t of th e A sso c ia tio n , a n d W. B. H ughes, A sso­
c ia tio n S e c re ta ry . 4— H. C. V an Horne, c h a irm a n of th e b o a rd
o f th e F a rm e rs S ta te B a n k , P a w n e e C ity, a n d h is son, E. N . Van
Horne, e x ec u tiv e v ice p re s id e n t of th e A m e ric a n N a tio n a l B a n k ,
C hicago. 5— N. D. S aville, cash ie r, F i r s t N a tio n a l B a n k , W isn e r ; M. M. Taylor, p re s id e n t, C e n tra l N a tio n a l B a n k , C olum bus;
F. W. Shonka, a s s is ta n t c a sh ie r of th e sam e b a n k ; a n d W illiam
B. W hitm an, a s s is ta n t s e c re ta ry , M a n u fa c tu re rs T ru s t, N ew
Y o rk . 6— C. C. Neum ann; Dr. P aul F. Cadman, econom ist, A. B.
A., N ew Y o rk ; a n d George H olm es, p re sid e n t, F i r s t N a tio n a l
B a n k , L incoln. 7— C. W. B a ttey , cash ie r, C o n tin e n ta l N a tio n a l,
L in c o ln ; W. R. Tate, a s s is ta n t c ash ie r, Com m erce T ru st, K a n sa s
C ity ; J. F. D avis, a s s is ta n t c ash ie r, F i r s t N a tio n a l, O m ah a; Fred
A ldrich, v ice p re sid e n t, C o n tin e n ta l N a tio n a l, L in c o ln ; a n d R. H.
M allory, vice p re s id e n t, TJ. S. N a tio n a l, O m aha. 8— Mrs. E. E.

N orthw estern B anker

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Federal Reserve Bank of St. Louis

N ovem ber 1940

E rickson, Sioux C ity, a n d E d P eck, U n ite d S ta te s C heck B ook
C om pany, O m aha. 9— George H. H am ilton, g o v e rn o r, F e d e ra l
R e serv e, K a n sa s C ity ; W. H. B aldridge, c h ie f n a tio n a l b a n k e x ­
am in e r, te n th d is tric t, K a n s a s C ity ; a n d E. P. Brown, d ire c to r,
F e d e ra l R e se rv e B a n k . 10— R. H. K roeger, vice p re sid e n t, a n d
Elm er Olson, a u d ito r, L iv e S to c k N a tio n a l, O m aha; K. C. Brown,
v ice p re sid e n t, B a n k in g H ouse of A. W. C lark e , P a p illio n ; H. H.
Echterm eyer, a s s is ta n t c a sh ie r,' L iv e S to c k N a tio n a l, O m aha;
a n d A u stin K in g, U n ite d S ta te s C heck B ook C om pany, L incoln.
11— Mrs. E lsie Parker a n d B ess G earhart M orrison, L in c o ln ; T.
B. Strain, p re sid e n t, C o n tin e n ta l N a tio n a l, L in co ln , a n d Mrs. T.
B. Strain. 12— W. N . M itten, p re sid e n t, a n d J. M. Sorenson,
e x e c u tiv e vice p re sid e n t, S te p h en s N a tio n a l B a n k , F re m o n t;
Fred Thomas, vice p re s id e n t, F i r s t N a tio n a l B a n k , O m ah a; A. J.
Jorgenson, p re sid e n t, A m e ric a n N a tio n a l B a n k , S id n e y ; a n d T. F.
Green, cash ie r, B a n k of V a lle y . 13— Carl D. Ganz, cash ie r, F a rm ­
ers a n d M e rc h a n ts B a n k , A lvo, a n d n ew p re s id e n t of th e N e ­
b ra s k a B a n k e rs A s so c ia tio n ; Mrs. Carl Ganz; M. W eil, p re sid e n t,
N a tio n a l B a n k o f Com m erce, L in c o ln ; a n d H. A. B ryant, p re s i­
d e n t P a rso n s C om m ercial B a n k , P a rso n s , K a n sa s.
14— J. V.
Johnson, p re s id e n t Jo h n so n C o u n ty B a n k , T ecu m seh ; Fred B.
Brady, v ice p re s id e n t Com m erce T ru s t C om pany, K a n sa s C ity ;
Charles C. K uning, a s s is ta n t v ice p re s id e n t A m e ric an N a tio n a l
B a n k , C hicago; R oland Larmon, p re s id e n t F i r s t N a tio n a l B an k ,
M cC ook; a n d E. W. R ossiter, p re sid e n t, B a n k of H a rtin g to n .


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Federal Reserve Bank of St. Louis

14

H ighlights

A t H o t Springs

Here and There W ith the Financial Advertisers
at the Twenty-fifth Annual Convention
By Clifford De Puy
Publisher

P rice Gilbert, ad v ertising m anager of
th e Coca Cola Company, A tlanta; E. J.
A lexander, vice president, F u lle r &
Sm ith & Ross, Inc., Cleveland; Robert
E. Grove, vice president, K etchum ,
M cLeod & Grove, P ittsb u rg h ; and RaAvrence H. Selz of Chicago. D onald A.
D avis, president, G eneral Mills, Inc.,
led th e general session on m ark etin g
and m erchandising, w ith an address
on selling th e nation.
R O B E R T J. IZ A N T
P re sid e n t
F in a n c ia l A d v e rtis e rs A ss o c ia tio n

T T H E 25th a n n u al m eeting of
th e F in an cial A dv ertisers Asso­
ciation at th e H om estead, H ot
Springs, V irginia, R obert J. Izant, vice
president, C entral N ational B ank of
Cleveland, w as elected president. He
succeeds S tephen H. Fifield, vice p re si­
dent, B a rn e tt N ational B ank, Jack so n ­
ville, Florida.

A

V ictor Cullin, assista n t secretary,
M ississippi V alley T ru st Com pany, St.
Louis, w as elected first vice president.
R. E. T ow nsend, a ssista n t vice p resi­
dent, B ank of A m erica, San Francisco,
becam e second vice president. Fred
W . M athison, a ssista n t vice president,
N ational S ecurity B ank, Chicago, w as
re-elected tre a su re r, and P reston E.
R eed w as re-elected executive vice
p resid en t for th e 17th year.

F o r its silver a n n iv e rsa ry conven­
tion, th e F.A.A. b ro u g h t to H ot Springs
a record atten d an ce and 12 n atio n ally
know n leaders in banking, advertising,
and public relatio n s as speakers. H ar­
ford P ow el, New Y ork City, public re ­
lations expert, conducted a classroom
session for th re e h o u rs each m orning,
poin tin g out secrets for th e effective
use of them es and w ords in ad v ertisin g
and selling.
O ther leading publicists on th e p ro ­
gram included C hester C. Parlin, form ­
er research directo r of th e C urtis P u b ­
lishing Company; P erry T. P rentice,
vice president, Time, Inc., New York;
N orthw estern B anker

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

N ovem ber 1940

B ankers on th e F.A.A. program in ­
cluded Robert M. H anes, president,
W achovia B ank & T ru st Company,
W inston-Salem , N o rth Carolina, and
p ast presid en t of th e A m erican B ank­
ers Association; B enjam in E. Young,
vice president, N ational B ank of De­
troit; J. L e A v ell Rafferty, vice president,
F o rt W o rth N ational Bank, F o rt
W orth, Texas; and Sam uel N. Pickard,
president, N ational M a n u f a c t u r e r s
B ank, N eenah, W isconsin.
The H om estead a t H ot Springs, V ir­
ginia, is m odern and stream lined; nev­
ertheless, t h e p o p u larity of H o t
Springs, W arm Springs, and E x celsio r
Springs cannot be com pared a t 8 a. m.
in th e m orning w ith th e w ell know n
bed springs.

Incidentally, The H om estead has 11
floors, b u t floor n um ber 1 is m arked
11, an d therefore, th e top floor is n u m ­
ber 22. W hy th ey have such fu n n y
n u m b ering we don’t know, b u t anyw ay
it is a b eautiful place and as one w rite r
has said, ‘H ot Springs has a long and
fascin ating history. In d ian s h ad th e
first go at it, and raided th e H om estead
as late as 1775. A nd it w as th e land­
lord’s d u ty to keep outposts on duty
ag ain st savage attack s in those days.
T he earliest H om estead w as b u ilt on
its p resen t site w ith th e sam e rolling,
landscaped estate shaded by m agnifi­
cent trees 10 y ears before th e signing
of th e D eclaration of Independence.
T his beautiful green valley and its v ast
red b rick center, trim m ed colonial
style in w hite, spreads star-shaped to
all points of th e com pass, over th e
A llegheny foothills.”

The only sad note at the convention
w as th e fact th a t P reston E. R eed’s
fath er, age 75, of Albion, M ichigan, had
died the w eek previous to th e conven­
tion. P re s’ fa th e r w as a m inister, and
in th e fam ily th ere w ere th ree b ro th ­
ers and tw o sisters.
E d w in Bird W ilson, of New York,
b ro u g h t his ch arm ing golfing daughter,
E th el, w ith him to th e convention.
S tephen H. Fifield, re tirin g president

of th e F.A.A., and vice presid en t of
th e B a rn e tt N ational B ank of Jackson­
ville, Florida, is an original m em ber of
th e H aw keye state, as he lived in
Loveland, Iowa, 35 y ears ago.
Mrs. R obert J. Izant, wife of the neAV
presid en t of th e F.A.A., and Mrs. Geo.
W. W illiam s of D etroit, w ere class­
m ates a t V assar. Mrs. W illiam s is the
dau g h ter of E. E. Johnson, well-know n
b an k er of W aterloo, and form er m em ­
ber of th e F ed eral R eserve B ank Board
of Chicago.
George V. RaM onte, presid en t of
George LaM onte and Son, of N utley,
New Jersey, b ro u g h t Mrs. RaM onte
w ith him to H ot Springs and th ey felt
rig h t a t hom e, because a n u m ber of
y ears ago The H om estead w as th e ir
honeym oon head q u arters.

A m ong th e guests a t th e hotel d u r­
ing th e convention w as Charles E.
M itchell, of N ew Y ork City, form er
presid en t of th e N ational City Bank.
The 1941 m eetin g of the F.A.A. w ill
be at Cleveland in th e hom e tow n of
our new president.
Joseph Bam e, of th e Comm ercial
N ational B ank of N ew York City, and
p resident of th e N ew Y ork F inancial
A dvertisers A ssociation, is a great
sto ry teller. A sk him to tell his “latest
o n e” and w h atev er it is it w ill be
“good.”

A

15
Sunday n ig h t in th e hotel th eater,
“Dr. J. K.” conducted a quizz for th e

assem bled delegates and guests. The
questions had been sen t in in advance
and w ere answ ered by th e “first
tim e rs” at th e m eeting. One question,
for exam ple, w as this: “Is th e dollar
sign an a rb itra ry sign or w h a t is its
origin.” In case you don’t know ju s t
ask “Dr. J. K.” w ho is none o th er th a n
th e w ell-know n financial ad v ertiser
and e x p ert know n as Ju liu s K. W aibel
of th e C ontinental Illinois N ational
B ank and T ru st Com pany of Chicago.
A t th e board m eeting on Sunday at
Hot S prings we w ere su rp rise d by a
birthday cake, as it w as “th a t d ay ” for

us. P reston Reed ju st finds out “ev ery ­
th in g .” It w as a v ery delightful and
h appy occasion for us, and especially
so, as we understood th a t th e cake w as
not charged to our room.

W hen th e R eserve City B ankers m et
a t H ot Springs in A pril of th is year,
B. F. Kauffm an, p resid en t of th e B ank­
ers T ru st Com pany of Des Moines, and
Robert J. Izant, presid en t of th e F.A.A.,
w ere bridge p artn ers. It w ould take a
c h a rt and sixteen diagram s to tell you
how it happened, b u t it did happen
and th e final bid w as 7 no tru m p s
doubled and w as played by F ra n k
K rauffm an and he m ade th e bid. Ask
F ra n k for the details.

M any ban k ers have heard of “Bank
N igh t,” b u t th is w as reversed for the
F.A.A. delegates on M onday night, as
it w as “M ovie N igh t for the B ankers.”
The list of m otion pictures w hich w ere
show n included th e following: “The
P lum ber F orgets His Tools,” by I.
Sperling, of th e Cleveland T ru st Com­
pany; “F o u r P illars of Incom e,” by C.
W. B ailey, presid en t of th e F irs t N a­
tional Bank, Clarkesville, Tennessee;
“Your M oney and M ine,” by A. R.
G ruenw ald, of the W isconsin B ankers
Association; “The Spirit of T h rift,” by
C. Lane Goss, of th e W orcester C ounty
In stitu tio n for Savings, of W orcester,
M assachusetts; “3,750,000 Checks Can(T u rn to page 33, Please)

THE F. H. A . B O A R D O F DIRECTORS A T H O T SPR IN G S

F r o n t R ow , le f t to r ig h t— M arie V. H ealy, M e rc a n tile T ru st
C om pany, B a ltim o re ; F red W. M athison, N a tio n a l S e c u rity B a n k ,
C h icago; R obert J. Izan t, n e w ly e le cte d p re s id e n t F .A .A ., C en­
t r a l N a tio n a l B a n k , C lev e lan d ; Steph en H. F ifield, r e tir in g p re s i­
d e n t F .A .A ., B a r n e tt N a tio n a l B a n k , Ja c k so n v ille , F lo rid a ; L. E.
Townsend, B a n k of A m e ric a, S an F ra n c is c o ; P reston E. Reed,
e x e c u tiv e vice p re s id e n t F .A .A ., C h icago; L ucy D avid , C e n tra l
Office F .A .A ., C hicago.
S econd Row — Jam es R ascovar, II, A lb e rt F ra n k -G u e n th e r L aw
In c ., N ew Y o rk C ity ; D ale Brown, N a tio n a l C ity B a n k , C leve­
la n d ; Thom as J. K iphart, F i f t h T h ird U n io n T ru s t C om pany,
C in c in n a ti; Guy W. Cooke, F i r s t N a tio n a l B a n k , C hicag o ; G. L.
Spry, C a n ad a T ru s t C om pany, L ondon, O n ta rio , C a n a d a ; O. G.
A lexander, B a n k of th e M a n h a tta n C om pany, N ew Y o rk C ity.
T h ird R ow — C. D elano Am es, M a ry la n d T ru s t C om pany, B a lti-

m o re; Fred M. Staker, Com m erce T ru s t C om pany, K a n s a s C ity,
M isso u ri; L ew is F. Gordon, C itiz en s & S o u th e rn N a tio n a l B a n k ,
A tla n ta ; R. H. W ells, S ta te P la n te r s B a n k & T ru s t C om pany,
R ichm ond, V irg in ia ; E. B. W ilson, E d w in B ird W ilson, Inc., N ew
Y o rk C ity ; John Bodfish, F i r s t F e d e ra l S a v in g s & L o an A sso c ia ­
tio n , C hicago; Edw ard W. N ippert, F i f t h T h ird U n io n T ru st
C om pany, C in c in n a ti; Col. E lio t H. Thomson, W a s h in g to n L o an
& T ru s t C om pany, W a s h in g to n , D. C.
B a c k R ow — H arold Cothrell, F t. W ay n e N a tio n a l B a n k , F t.
W a y n e ; Clifford De P uy, N o rth w e s te rn B a n k e r, D es M oin es; J.
L ew ell L afferty, F o r t W o rth N a tio n a l B a n k , F t. W o rth ; R. W.
Sparks, B o w ery S a v in g s B a n k , N ew Y o rk C ity ; R oy H. Booth,
Jr., N a tio n a l S h a w m u t B a n k , B o sto n ; C. H. W etterau, A m e ric an
N a tio n a l B a n k , N a sh v ille .

N orthw estern B anker N ovem ber 1940

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

16

Helping Bankers, Farmers
and Dealers to

Mdkß Money

Bankers Are Interested in Financing Farm Equipment Because They Know
It W ill Help the Farmer to Increase His Farm Efficiency

A

NY BU SIN ESS or organization
w hich helps to increase th e total
w ealth of a com m unity is p e r­
form ing a real service.
Our basic source of w ealth is th e
soil.
The M inneapolis-M oline Pow er Im ­
plem ent Com pany is celebrating its
seventy-fifth a n n iv e rsa ry th is y ear and
has been a v ery pow erful factor in
helping farm ers, dealers and b an k ers
to m ake m oney because these th ree
groups in tu r n have helped to develop
new w ealth from th e soil.
T hus th e “M-M”, M inneapolis Mo­
line, has helped these th re e groups to
“MM”, m ake money.
L et us see w h at th e seventy-fifth a n ­
n iv e rsa ry of th e M inneapolis-M oline
Pow er Im p lem ent C om pany m eans to:
1. B ankers
2. F a rm e rs
3. D ealers
4. M inneapolis-M oline Com pany

Bankers
B ankers are in terested in financing
farm equipm ent because th e y know it
will help th e farm ers to increase th e ir
farm efficiency.
Likew ise, b an k ers
are anxious to finance dealers w ho sell
farm m achinery because th ey in tu rn
are helping to add to th e total natio n al
income.
In an article published in T h e N o r t h ­
w e s t e r n B a n k e r some m onths ago on
“H ow to Increase B ank E a rn in g s”,
W. E.* B rockm an, vice p resid en t of th e
M idland N ational B ank and T ru st
Com pany of M inneapolis told how
ban k ers have increased th e ir earnings
by th e financing of tra c to rs and oth er
farm equipm ent.
In th is article he said: “B anks lo­
cated in th e b e tte r ag ricu ltu ral areas
are finding a new and profitable outlet
for th e ir su rp lu s funds in financing th e
sale of tra c to rs and o th er farm equip­
m ent. F o r m any y ears follow ing th e
intro d u ctio n of th e farm tra c to r and
oth er pow er m achinery for farm use,
installm en t sales w ere handled largely
by th e m an u factu rer, and in some
N orthw estern B anker N ovem ber 194-0

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

cases by responsible dealers w ho w ere
financially able and w illing to take the
risk. Only in recen t years have banks
become an im p o rtan t factor in the ex­
tension of th is type of credit.
“T here are certain im p o rtan t factors
w hich today m ake farm tra c to r paper
a desirable investm ent.
“1. The farm tra c to r has a g reater
u tility th a n ever before. The develop­
m ent of th e light and speedier type
of tra c to r m eans th a t tracto rs are not
re stricted to actual cultivation and
h arv estin g b u t are p u t to a v ariety of
uses, used th ro u g h o u t th e year and in
all kinds of w eather. Given norm al
use th e cost of rep airs d u rin g th e first
few years are nom inal. F inally, th e
ran g e of prices of tracto rs is such th a t
th e cost is low enough on certain types
for th e sm all farm er and th ey can,
therefore, be used on both sm all and
large scale operations on an econom i­
cal basis.
“2. M anufacturers are giving m ore
a tten tio n to building up stro n g dealer
organization. A b ran ch m anager m ust
be experienced and com petent. Qual­
ity sales are looked for by th e m an u ­
fa c tu rer ra th e r th a n volum e. The good
dealer or b ranch m anager is expected
to be as careful of credits as th e b an k ­
ers w ho finance th e sales. D istribu­
tors realize th e ir responsibility to the
b ank th a t carries th e p aper and u su ­
ally can be depended upon to follow
th ro u g h u n til the contracts are paid.
“3. The m an u factu rers are w orking
closely w ith the banks th a t are financ­
ing sales eith er by loans extended to
dealers, paper purchased from them , or
direct loans to farm ers. These m an u ­
factu rers are in sistin g upon a sound
sales and financing program so th a t
not only they them selves b u t th e deal­
er, th e b an k er and th e p u rch aser m ay
keep losses to a m inim um .”

Farmers
P rogressive up-to-date farm ers are
anxious to purchase m odern up-to-date
farm m achinery because th e y know
th a t it increases th e production from

th e ir acres w hich in tu rn m akes them
m ore m oney and th u s in a reasonable
length of tim e enables them to pay
for th eir new equipm ent.
The total farm incom e for 1939
am ounted to $8,518,000,000 and all b ut
9.4 p er cent of th is w hich rep resen ts
governm ent paym ents, cam e from the
actual sale of products from the farm s
including grains and livestock so th a t
the farm er is a v ery im p o rtan t p a rt of
our national economic picture.

Dealers
B ankers are v ery glad to finance
rep utable farm im plem ent dealers w ho
m ay need funds for carry in g on th e ir
business.
M any M inneapolis-M oline dealers
have been v ery successful in th e oper­
ation of th e ir business as indicated
by the follow ing letters from a few
of them :
C a s t a n a , I o w a , J u l y 8, 1940.
Mr. C. A. J o h n s o n , D i v i s i o n M a n a g e r
M i n n e a p o l i s - M o l i n e P o w e r I m p l e m e n t Co.
Omaha, N eb raska.
M y first e x p e r i e n c e w i t h th e M in n e a p o ­
l i s - M o l i n e C o m p a n y d a t e s b a c k t o 1919. A
m a c h in e r y -m in d e d fa r m lad w h o had ju st
c o m p l e t e d a c o u r s e in A g r i c u l t u r a l E n g i ­
n e e rin g , I w a s s e a r c h in g th e m a r k e t for a
t r a c t o r to o p e r a t e m y w e s t e r n I o w a f a r m .
Out of all th e fr e a k m o d els o f th o se tra cto r
p io n e e r in g days, j u s t on e m o d el s e e m e d to
m e to s ta n d ou t h e a d an d s h o u ld e r s a b o v e
a l l o t h e r s , t h e 12-2 0 T w i n C ity .
In t h o s e d a y s o f op en g e a r s , e x p o s e d
driv e ch a in s, tr a n s m is s i o n s w it h plain b a b ­
bitt bearings, m od el T sp la sh o ilin g s y s ­
t e m s , e tc ., h e r e w a s o n e m o d e l e q u i p p e d
w i t h f u l l y e n c l o s e d g e a r s r u n n i n g in oil , a
ro ller b e a r in g tr a n sm issio n , fu ll p ressu re
m otor lu b rica tio n sy ste m and m a n y oth er
featu res w h ich w e n ow k n o w w ere over a
d ec a d e a h e a d o f th e ir tim e.
D u e to su c h
a d v a n c e d d e s i g n , t h i s t r a c t o r , p u r c h a s e d in
th e days w h e n tra cto r life w a s e x ce e d in g ly
s h o r t , g a v e o v e r 20 y e a r s o f f a i t h f u l s e r v ­
ice.
F o r th e p a st t w e lv e y ears, w e ha v e o p e r ­
ated our fa rm en tir e ly w ith exp erim en tal
m o d el tr a cto rs. T h is lin e o f w o r k h a s k e p t
m e in v e r y c l o s e t o u c h w i t h l a t e s t d e v e l o p ­
m e n t s in t h e p o w e r f a r m i n g f ie ld a n d m j
o b se rv a tio n h a s b een th a t th e M in n ea p o lisM o l i n e P o w e r I m p l e m e n t Co., w h i c h h a s
n o w a b s o r b e d th e old T w in C ity c o m p a n y ,
h a s l e d t h e f ie ld in p i o n e e r i n g a l a r g e m a ­
jo rity of our m ore im p ortant im p rove­
m e n t s in t r a c t o r a n d t r a c t o r m a c h i n e r y
d e s i g n . J u s t a s in 1919, t h e i r n e w l i n e o f
t r a c t o r s a r e y e a r s a h e a d o f c o m p e t i t i o n in
e n g in e e r in g and u ltr a -m o d e r n design.
N o w , a s a n MM d e a l e r , I fin d t h a t i t i s
e a s y to se ll th is m o d er n lin e to th e m o s t
d iscrim in a tin g typ e of fa rm er buyer, th e
farm er w ith w id e m a ch in ery experien ce
w ho has used and w orn out m o st every
m ak e o f tractor and k n o w s h o w a tractor
m u s t b e b u i l t t o “t a k e i t ” y e a r a f t e r y e a r .
N a t u r a l l y , i t t a k e s m o r e t i m e to s e l l t h i s

17
t y p e o f p r o s p e c t, du e to t h e t h o r o u g h n e s s
w ith w h ic h ev er y d eta il of co n stru ctio n
m u s t be ex p lain ed . H o w e v er , su c h a sa le
b r in g s a la r g e d e g r ee of s a tisfa c tio n and
u l t i m a t e profit fo r s e v e r a l r e a s o n s . In th e
f i r s t p l a c e , t h i s t y p e o f f e l l o w is p r i m a r i l y
i n t e r e s t e d in t h e q u a l i t y o f t h e g o o d s , a s
c o n t r a s t e d to th e “t r a d e r ” t y p e w h o c h a s e s

all o v e r s e v e r a l c o u n t ie s a n d fin ally d e a ls
w here he can g e t the b ig g e s t tra d e-in a l­
lo w a n c e , w i t h th e d e a le r j u s t t r a d in g d olStill m ore im p ortan t, th is d isc rim in a tin g
b u y e r i s u s u a l l y t h e “k e y m a n ” o f t h e
c o m m u n i t y w h o s e j u d g m e n t is m o s t r e ­
s p e c t e d a n d w h o s e c h o i c e o f m a c h i n e r y is

1— T he M oline-M onitor drill, first in tro d u c e d in 1871, w as th e
first c o m m e rc ially su c c essfu l g ra in d rill. T h ro u g h th e y e a rs i t has
re p re s e n te d th e s ta n d a r d in a c c u ra c y a n d u n ifo rm ity in d rillin g .
T he p re s e n t M o lin e-M o n ito r a ll-ste el d rills are th e m odern v e r ­
sion o f d rill acc u rac y .
2— P ic tu r e d here is th e M inneapolis-M oline U n iversal “ Z ” tra c­
tor w ith fo u r-ro w c u ltiv a to r a tta c h m e n t. T he M M q u ick on,
q u ic k off t r a c to r a tta c h e d c u ltiv a to r is th e m o d ern successor to
th e M oline W e ste rn , th e first stra d d le -ro w c u ltiv a to r, in tro d u c e d
b y M oline in 1870.
3— T he H arvester 69, h a rv e s tin g a h e a v y s ta n d of oats. P o w ere d
by p o w er take-off, th e H a r v e s to r “ 6 9 ” em bodies m an y o f th e
f e a tu re s w h ich h a v e m ad e th e M M H a rv e s te rs th e m o st econom ­
ic a l a n d s u re st m eth o d of h a rv e s tin g a ll sm all g ra in a n d g ra ss.

v e r y c a r e f u l l y w a t c h e d b y h i s n e ig 'h b o r s .
S ell th is m a n and y o u h a v e p r a c tic a lly sold
th e w h o le c o m m u n ity .
T h e MM l i n e h a s b e e n pr ofi table _ t o m e
p r i m a r i l y b e c a u s e i t is t r u l y a q u a l i t y l i n e
a n d is s e l f a d v e r t i s i n g t h r o u g h c u s t o m e r
satisfaction.
(S ig n ed ) F red W. H a w th o rn .

4— T he 12-foot H arvester— th e o rig in a l lig h t w e ig h t, b ig c a p a c ­
i ty com bine fo r a ll crops. In tro d u c e d in 1934, it re v o lu tio n iz e d
h a rv e s tin g m eth o d s a lm o st o v e rn ig h t.
5— T he MM “ R ” tractor w ith C om fort-C ab a n d th e W o rld ’s
C ham pion P la n te r. M oline in tro d u c e d th e first w ire -d riv e n com ­
b in ed check-row a n d d rill p la n te r in 1884. T he m o d ern v ersio n
of th is p la n te r p la n te d fo u r successive W o rld ’s C ham pion y ield s,
a n d p la n te d 1,083 h ills w ith o u t m issin g a single k e rn el.
6— T he M in n eap o lis-M o lin e U n iv e rsa l “ Z ” a n d
b o tto m H i-K learance plow —-the m o d ern successor to
F ly in g D u tc h m a n , th e first th ree -w h e eled plow
p e a re d in 1876. T he stu b b le show n in th is field w as
30 in ch es h ig h .

tw o 16-inch
th e M oline
w h ich a p ­
m ore th a n

N orthw estern Banker N ovem ber Î9W

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Federal Reserve Bank of St. Louis

18

M IN N E A P O L IS - M O L IN E C O M P A N Y O F F IC IA L S

W . C. M A C F A R L A N E
P re s id e n t and G e n e ral M a n a g e r

GEO . L. G IL L E T T E
V ic e P re s id e n t and G e n e ral
S a le s M a n a g e r

C o lb y , K a n s a s , J u l y 1, 1940.
M i n n e a p o l i s - M o l i n e Co.
Omaha, N ebraska.
G entlem en:
W e h a v e f o u n d o u r c o n t r a c t w i t h MM
v e r y s a t i s f a c t o r y , a n d fo r s u r e t h e MM lin e
is t h e b e s t l i n e o f t r a c t o r s a n d i m p l e m e n t s
t h a t I p e r s o n a lly h a v e e v e r sold. W e h a v e
le ss tro u b le w ith th is lin e th a n a n y I h a v e
e v e r sold, a n d w e b e lie v e t h a t th e MM lin e
h a s m o re satisfied and p le a sed u se rs th a n
a n y o t h e r li n e . T h i s is t h e big- r e a s o n w h y
w e h a v e sold so m a n y tr a c to r s and so m u ch
m achin ery.
I b eliev e th a t w e are lik e a lo t of your
o t h e r d e a l e r s in t h a t w e t u r n d o w n m o r e
d e a ls th a n w e m a k e , b u t th at, too, s h o w s
th a t fa rm ers g e n e ra lly th in k w e ll of the
M M l i n e . W e fin d b a n k e r s w i l l i n g t o c o ­
operate w ith us by b u y in g farm ers’ notes
or b y lo a n i n g th e fa r m e r s m o r e m o n e y to
b u y m o r e MM t r a c t o r s a n d m a c h in e r y , a n d
t h a t s u r e ly h e lp s u s to s e ll m ore.
Y o u rs tru ly,
S h alz and O w en I m p le m e n t C o m p a n y
( S i g n e d ) L o u i s J. S c h a l z .

S t e r l i n g , I l l i n o i s , J u l y 18, 1940.
M i n n e a p o l i s - M o l i n e P o w e r I m p l e m e n t Co.
P eoria, Illin ois.
Mr. C. N. G a r d n e r , M a n a g e r .
D e a r f r i e n d Mr. G a r d n e r :
T he w riter ta k e s th e lib erty of w r itin g
to y o u on y o u r 75th a n n iv e r s a r y , w h ic h
a l s o h a p p e n s t o b e t h e w r i t e r ’s 2 0 t h a n n i ­
v e r s a r y o f a ffiliation w it h th e T w in C ity
Company,
now
the
M in n eapolis-M olin e
P o w e r Im p lem en t Com pany.
W e w i s h to t a k e th is o p p o r t u n it y to e x ­
p ress our a p p re c ia tio n for th e fr ie n d ly
r e l a t i o n s w i t h y o u r c o m p a n y in t h e s e
m a n y y e a rs of d ea lin g s w ith you.
I t ’s
been a case of one la r g e frien d ly fa m ily
d o in g b u sin ess to g e th e r for th e p a st t w e n ­
t y y e a r s . It h a s b e e n a p le a s u r e to h a v e
han d led y o u r q u a lity m a n u fa c tu r e d m a ­
c h in e s all th e s e y e a r s and to h a v e m a d e a
s u c c e s s o f it.
W e w i s h to e x t e n d o ur p e r s o n a l h e a r t y
c o n g r a t u l a t i o n s to y o u o n t h e C o m p a n y ’s
d ia m o n d a n n iv e r s a r y and h op e th a t w e
m a y be d o in g b u sin ess w ith y ou for m a n y
m o r e y e a r s in t h e f u t u r e .
T h a n k in g y o u for a ll p a s t fa v o r s y o u
h a v e e x t e n d e d o u r fi rm a n d t o u s p e r s o n ­
ally, w e rem ain ,
Y o u rs v e r y tru ly,
M y l i n ’s A g r i c u l t u r a l S t o r e .
( S i g n e d ) S. B. M y l i n .

F o w l e r , C o l o r a d o , J u l y 2, 1940.
M i n n e a p o l i s - M o l i n e P o w e r I m p l e m e n t Co.
Omaha, N ebraska.
G entlem en:
I w a n t to ta k e th is o p p o r t u n it y to e x ­
press m y a p p recia tio n of th e p r iv ile g e of
b e i n g o n e o f y o u r d e a l e r s in t h e s a l e o f
y o u r o u t sta n d in g lin e of tr a c to r s and farm
m achin ery.
I h a v e w o r k e d w ith and sold m a c h in ­
e r y s i n c e I w a s a y o u n g m a n in b u s i ­
n e s s w i t h m y f a t h e r in t h e d a y s o f t h e o l d

N orthw estern B anker N ovem ber 19^0

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

S. L . A N G L E
T r e a s u r e r and C o m p tro lle r

c o n s i g n m e n t c o n t r a c t . I n m y 57 y e a r s o f
life I h a v e seen m a n y d ea lers go broke
u n d er th e old s y s te m . A nd y e t to d a y th er e
are v e ry fe w m a c h in er y com p a n ies th a t
h a v e t a k e n a n y t o o m u c h i n t e r e s t in t h e
d e a l e r ’s p r o b l e m s a n d h e l p e d h i m m a k e
good.
I can tr u th fu lly sa y th a t since I h a v e
h a n d l e d t h e MM l i n e I h a v e m a d e m o r e
p r ofi t, e v e n w i t h a l o w e r v o l u m e , t h a n w i t h
a n y l i n e I h a v e e v e r s o ld .
Y o u r t e r m s h a v e b e e n h e l p f u l t o u s in
b u ild in g up a g o o d b u sin ess.
Your d is­
c o u n t fo r c a s h e n a b le s u s to p a s s on s u b ­
s t a n t i a l s a v i n g s t o t h e f a r m e r w h o is a b l e
to p a y cash .
And your req u irem en t of a
40 p e r c e n t d o w n p a y m e n t g i v e s t h e b a n k
a g o o d sec u r e in v e s t m e n t on th e b alan ce.
W e fin d t h e b a n k e r s a l w a y s g l a d t o h a v e
the
o p p o r t u n it y to
i n v e s t t h e * b a n k ’s
m o n e y in a s a f e p r o p o s i t i o n .
T h an k in g you and w ish in g m ore pow er
t o MM, I r e m a i n ,
V ery tru ly yours,
(S ig n ed ) L y a s M organ.

K a l i s p e l l , M o n t a n a , S e p t . 27, 1940.
Mr. B. D . G r u s s i n g ,
c a r e M i n n e a p o l i s - M o l i n e P o w e r I m p . Co.,
M in n eap olis, M in n esota.
D e a r Sir :
W e lik e yo u r fo u r-co lo r a d v e r tis in g v e ry
m u c h ; t h i n k i t is v e r y o u t s t a n d i n g a n d I
k n o w i t h e l p s a lo t. I k n o w o f t w o t r a c ­
t o r s t h a t w e r e s o l d b y t h e a d s in t h e C o u n ­
try G entlem en.
T h e y c a m e in a n d h a d
read th e ads an d to ld m e th e y lik ed the
c o l o r o f t h e t r a c t o r in t h e a d s a n d w h e n
t h e y s a w th e tr a c to r it s u r e t o o k th e ir e y e
-—s o a l l I h a d t o d o w a s g i v e t h e m a d e m ­
o n s t r a t io n an d c lo s e t h e deal.
I th in k th e fou r colors and th e w a y y o u
a d v e r t i s e in t h e f a r m p a p e r s a r e m o r e
p le a s in g th a n m o s t o f our com petitors.
V ery tru ly yours,
( S i g n e d ) V i c t o r V. C r o s k r e y .

D e c a t u r , I l l i n o i s , J u l y 24, 1940.
Mr. C. N. G a r d n e r ,
M anager, M in n ea p o lis-M o lin e P o w e r I m ­
p l e m e n t Co.,
Peoria, Illin ois.
D e a r S ir :
A s t o d a y , J u l y 24, 1940, m a r k s m y f o u r t h
a n n i v e r s a r y a s a n MM d e a l e r , I s h o u l d l i k e
to e x p r e s s m y a p p r e c ia tio n o f a v e r y p l e a s ­
a n t b u sin ess relationship .
F o u r y e a r s ago, due to th e fa c t t h a t I
h a d u s e d MM m a c h i n e r y , a n d b e c a u s e m y
fa th e r had en jo y ed a su c c e ssfu l co n n ectio n
w ith y our com pan y for m a n y years, I a sked
for an d rec e iv e d m y c o n tr a c t a t D eca tu r,
Illinois.
T oday, I can t r u t h f u lly s a y I could n o t
h ave chosen a com p an y m ore coop erative
a s an o r g a n iz a tio n or a c o m p a n y w i t h m a ­
c h i n e r y m o r e r e l i a b l e . W e d e l i v e r o v e r 50
per c e n t of th e c o m b in e s u s e d in th is v i ­
cin ity , a n d MM tr a c t o r s an d im p le m e n t s
d o t t h e fields o v e r a n a r e a o f m a n y s q u a r e
m iles. T here are ju st tw o th in g s th a t ha v e
m ad e th is a p o ssib ility .
F i r s t , M M is a

B O N D. G R U S S IN G
A d v e r t is in g and S a le s P ro m otio n
M a n a g er

lin e th a t I can g o o u t and r eco m m en d u n ­
c o n d i t i o n a l l y t o m y c u s t o m e r s . S e c o n d is
M M ’s fi n e D e a l e r P o l i c y , w h i c h h a s m a d e
it p o s s i b le for m e to b u ild th e l a r g e s t and
m o s t profitable fa r m im p le m e n t b u sin ess
in t h i s c o m m u n i t y w i t h a v e r y s m a l l o r i g i ­
n al capital.
In c lo sin g , le t m e a g a in e x p r e s s m y
a p p r e c ia tio n an d pride for m y co n n e c tio n
w i t h t h e M i n n e a p o l i s M o l i n e Co., a n d I
s in c er e ly hop e th a t th is h ap py and v ery
profitable r e la tio n s h ip m a y c o n tin u e for
m a n y y e a r s to com e.
K in d e st p erson al regards.
( S i g n e d ) H . A. K u h l e .

Minneapolis-Moline History
T he M inneapolis-M oline record of
achievem ent d u rin g th e p ast 75 years
is a m ost in terestin g one, and th e fol­
low ing 7 points w ill show briefly w hat
th ey are now doing:
1. The M-M uses 28,000 tons of steel
yearly.
2. M-M uses 20,000 gallons of p ain t
annually.
3. M-M has 50 branches and over
1,500 dealers in th is country.
4. More th a n 2,500 different products
bear th e fam ous M-M tradem ark.
5. M-M em ploys an average of 3,000
w o rkers and has an an n u al p ay­
roll of $5,000,000.
6. Over 44,000 tires are used each
y ear on M-M farm im plem ents.
7. A nnual sales exceed $15,000,000.
M inneapolis-M oline dates its origin
back to th e sp rin g of 1865 in Moline,
Illinois, w hen H en ry Candee and R. K.
Sw an pooled th e ir resources and s ta rt­
ed th e m an u factu re of fanning m ills
and h ay rak es in a little 40x60-foot
fram e shop on th e site of th e presen t
M inneapolis-M oline p lan t in th a t city.
I t w as w ith th e M inneapolis Steel
and M achinery Com pany th a t W. C.
M acFarlane becam e identified w ith th e
farm equipm ent in d u stry d u rin g the
1920’s.
Mr. M acFarlane has w orked his w ay
(T u rn to page 32, Please)

MEMBER
FEDERAL
D E P O SIT

INSURANCE
C O RPO RA TIO N

National Bank
N orthw estern Banker

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

N ovem ber 19k0

D anger, a M issouri ban k er, agreed to
sell to G reen certain lan d in th a t state.
T hey in tru ste d to a law y er th e p re p ­
aratio n of th e deed. He m ade a m is­
tak e in p re p a rin g it. The g ra n to r exe­
cuted and th e g ran tee accepted th e
deed, believing it expressed th e ir tru e
intention. L a te r on th e m istak e w as
discovered. Should th e deed be re ­
form ed to express th e tru e in te n t of
the parties?
Yes. W here th e p arties to a deed
agree upon the land to be con veyed
and in tru st the preparation of the deed
to a law yer Avho m akes a m istake in
draw ing it and the grantor execu tes
and the grantee accepts the deed be­
lie v in g it exp resses th eir true in te n ­
tion, the m istake in the deed is a m u­
tual m istake of the parties and a refor­
m ation of the deed m ay be had.
S terlin g m aintain ed a checking ac­
count in a South D akota bank. In
good faith he delegated to a clerk in
his em ploy th e resp o n sib ility of exam ­
inin g his m o n th ly statem en ts and can­
celled checks. T he b an k paid a check
to w hich S terlin g ’s sig n atu re had been
forged and, by reason of th e dishon­
esty of th e clerk, S terlin g did not no­
tify th e b an k p ro m p tly of th e forgery.
In such circum stances w as S terling
relieved of th e resp o n sib ility to exam ­
ine his statem en ts and p ro m p tly notify
th e b ank of forgeries?
No. A good faith d elegation to a d is­
h onest clerk of a depositor’s duty to
exam in e periodic statem en ts of ac­
cou n t and the cancelled ch ecks d eliv ­
ered to him by the bank and to prom pt­
ly n otify the bank of forgeries does not
relieve the depositor of resp onsibility
to exam ine the statem en ts and checks
and to p rom ptly n otify the bank of a
forgery.
A N orth D akota b an k er died leaving
no w ill and surv iv ed by a d au g h ter
and a bro th er. By sta tu te in th a t state
a child has th e rig h t to ad m in ister the
estate of his or h e r p a re n t p rio r to th e
rig h t of th e b ro th e r of th e decedent to
adm in ister such estate. A dispute
arose betw een th e d a u g h ter and th e
b ro th e r reg ard in g w ho should admin-

N orthw estern B anker N ovem ber 19^0

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

These and Other Timely Legal
Questions Are Answered
By the

LEGAL DEPARTMENT
iste r th e b a n k e r’s estate.
d au g h ter prevail?

Should the

Yes. The right to ad m in ister the es­
tate of a decedent is regulated en tirely
by statu te and letters of adm inistration
m ust be granted in the order and in
accordance w ith the ru les prescribed
by statu te. The daughter, therefore,
w as en titled to ad m in ister h er fa th er’s
estate.
A n Illin o is bank obtained a ju d g ­
m en t ag ain st M axwell, an Iow a re si­
dent. Before obtaining th e ju d g m en t
th e b an k frau d u len tly caused Maxwell
to come to Illinois for the purpose of
obtaining ju risd ictio n over him . L ater
th e b ank sought to enforce th e judg­
m en t in Iowa, claim ing th e Iowa
courts w ere bound to give it full faith
and credit. W as such contention
sound?
No. W here a person resid in g in one
ju risd iction is induced by false pre­
ten ses or represen tation s to com e into
another in order that service m ay be
had upon him , the jurisd iction ac­
quired is frau d u len tly obtained and
the jud gm ent is void.
A N ebraska attorney w as m ade th e
executor of an estate of a decedent
th ere. As such he w illfully m isappro­
p riated p a rt of th e esta te ’s assets.
S ubsequently he w as rem oved as exe­
cu to r and a b an k er w as appointed to
w ind up the estate. The b an k er dis­
covered th e m isappropriation and, af­
te r a g reat deal of trouble and w ork,
w as able to secure re stitu tio n from the
a tto rn e y of th e e state’s funds. Dis­
b a rm en t proceedings w ere b ro u g h t
ag ain st th e attorney. Did th e fact th a t
he h ad m ade re stitu tio n p rev en t his
disbarm ent?
No. The atto rn ey ’s conduct w ill not
be condoned sim p ly because he made

restitution after he w as faced w ith the
issue of legal accountability. Mere
restitu tio n by an attorney of funds
w illfu lly con verted by him w ill not
exon erate him and p rev en t his disbar­
m ent.
A M innesota bank w as one of the
u n d e rw rite rs of a reorganization plan
for a m achinery com pany. The tru s t
com pany affiliated w ith it w as the
tru ste e of a su b stan tial estate. T he es­
tate w as rep resen ted by counsel, who
had no connection w ith th e ban k or its
affiliate, th e tru s t com pany. C ertain
stockholdings of th e estate w ere ex­
changed for stock in th e m achinery
com pany. Counsel for th e estate ex­
am ined th e exchange v ery carefully
and approved it. The P robate Court
having jurisd ictio n of th e estate did
likew ise. L ater th e exchange did not
w ork out as w ell as anticipated. Could
it be rescinded by reason of th e dual
in te re st in th e tran sactio n of the bank
and the tru s t com pany?
No. S elf or double d ealing by a fidu­
ciary is bad. AVith a fu ll disclosure
w hich has proper jud icial approval,
h ow ever, it m ay becom e good because
purged of Aice. Such aaus th e case
here. The tran saction Avas com pletely
open and above board. No rescission,
therefore, should be perm itted.
Carroll, a T exas banker, sold, u n der
orders of th e County C ourt there, a
piece of p ro p erty belonging to an es­
tate of w hich he w as th e ad m in istrato r
to H are, a bona fide purchaser. H are
com plied w ith all th e provisions of the
co u rt orders u n d er w hich th e sale w as
m ade and received a conveyance from
th e ad m in istrato r. W hen C arroll p re ­
sented his an n u al account as adm inis­
tra to r to th e County Court, th e Judge
refused to approve it. W as the sale
to H are, therefore, void?
No. AYhere an adm inistrator, under
orders of th e County Court, se lls his
esta te’s land to a bona fide purchaser
w ho com plies w ith the p rovision s of
the orders of th e court under w hich
the sale is made and receiv es a conA eyanee from the adm inistrator, title

(T u rn to page 33, Please)

21

R EA SO N S W HY BAN KS P R E F E R
LA M ONTE S A FE T Y P A P ER S
PROTECTION
GOOD

W ILL

ACCEPTANCE

VALUE

RECO GNITIO N
PRESTIGE
/

V

IN D IVID U ALITY
ACCEPTANCE
W R ITIN G

SURFACE

PRIN TIN G

SURFACE^.

d u r a b il it y j ^CT^
UNIFORM

The n a tio n -w id e ch o ice of La M onte S a fety P a p ers
s h o w s h o w c o m p le te ly b a n k ers a n d other b u sin ess m en
h a v e com e to r e ly u p on this sa fe g u a r d for the protection
of ch eck s a n d other n e g o tia b le instrum ents a g a in st
fraudulent alteration . » » » T oday m ore than 75% of the
country's le a d in g b an k s, a s w e ll a s ou tstan d in g b u si­
n e s s h o u se s, are reg u la r u sers cf La M onte S a fety P a p ers.

G E O R G E LA MONTE & SON, NUTLEY, N. J.
N orthw estern Banker N ovem ber 19W

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

22

N e w s a n d V ie w s
O F T H E B A N K IN G

W O RLD

By Clifford De Puy
I

M. NICHOLS, p resid en t of th e

F irs t N ational B ank of E n g le­
wood, Chicago, has alw ays been o u t­
spoken in w h a t he th o u g h t about any
political or b an k in g question, as w ill
be rem em bered in his long “feu d ”
w ith th e F ed eral D eposit In su ran ce
Corporation. In his sta te m e n t p u b ­
lished recen tly he p rin te d a t th e b o t­
tom of th e page:
“In a last stand for dem ocracy,
every director and officer of this
bank w ill cast his vote for W en ­
dell W illkie.”

In his statem en t he carries his
“Stock in Federal R eserve B an k ” at
“10 c en ts”.
G eneral H ugh Joh nson w alked into
a W ashington d ru g sto re recently. “L et
me have a to oth-brush,” he asked th e
clerk. He w as show n one of those
new n u m b ers w ith a sm all, p aten ted
clu ster of bristles. He looked a t it
w ith a frow n, “Hell, I ’ve got m ore
th a n one to o th ,” th e G eneral shouted.

An A ssociated P ress w irephoto pic­
tu re w hich w as flashed to W ashington,
D. C. from a n o th e r city show ed a store
w ith a large b a n n e r p ain ted across th e
front, w hich said “W e are sick and
tired of b ucking th e N ew Deal; w e are
closin g up and goin g on relief.”

W hile in W ashington, D. C. we w en t
th ro u g h th e F ed eral B ureau of In ­
v estigation , w hich is th e h ead q u arters
for J. E dgar H oover an d th e “G” m en.
T here are 1600 people em ployed in
th e B ureau in W ash in g to n and 3200
in th e service th ro u g h o u t th e U nited
States.
T hey have 14,000,000 finger p rin ts
on file, and if a crim inal is a rre ste d in
an o th er city, th e police th e re can send
his finger p rin ts to th e F B I an d in
five m in u tes th e y can find out w h e th e r
he has a crim in al record and w h a t
his p a st crim es have been.
T hey first took us in a room w h ere
th e re is a w ax dum m y of a dead m an
on th e floor, w ho h as been shot. A
gun is by his side and a h an d k erch ief
has som e blood on it. A m an w ho is
stud y in g to be a “G” M an has to come
into th is room and tell from th e evi­
dence w h e th e r th e m an w as sh o t by
som eone else or w h e th e r he com m itted
suicide.
N orthw estern B anker N ovem ber Í9k0

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

T hey have on file over 27,000 rec­
ords of fugitives w ho are w anted by
th e G overnm ent for crim es w hich th ey
have com m itted.
T here are no tw o finger p rin ts alike
—even on tw ins. The Dionne q u in ­
tu p lets do not have identical finger
prints.
Some crim inals, like D illinger, have
gone to doctors and trie d to have th e ir
fingers operated on so th a t th e p rin ts
w ould n ot show; b u t these operations
have not been successful. W e saw
D illinger’s finger p rin ts, and th e only
difference is th a t th ere is a w h ite spot
in th e cen ter of his p rin t w here a doc­
to r h ad used acid to b u rn aw ay th e
tissue on th e ends of his fingers.
All th e “G” Men have to be ex p ert
shots, and we w ere tak en dow n into
a room w hich is sound-proof and b ul­
let-proof, w here th ey have ta rg e t p rac­
tice.
T hey use for th e ir ta rg e ts th e o u t­
line of a m a n ’s body p rin te d on paper.
“K ” and “D” letters on th e ta rg e t
stan d for “K ill” and “D isable”, re ­
spectively.
The “G” Men use tw o types of guns,
—one know n as th e Thom pson A uto­
m atic, or th e Tom m y Guns, m anufac­
tu re d for th e U nited States G overn­
m en t only. No individual can buy
one. A Tom m y G un shoots 20 bullets
a second.
V. O. F igge, executive vice p resid en t
of th e D avenport B ank and T ru st
Com pany, and Jo h n Quail, p resid en t of
Quail and Company, D avenport in v est­
m en t firm, re p o rt and excellent h u n t­
ing trip in th e far n o rth on th e edge of
th e Yukon, from w hich trip th ey re ­
cently retu rn ed . T he object of th e ir
q u est w as to h u n t Stone sheep. Re­
g ard ing th e elusive sheep, B anker
Figge says: “If you do n ot know w h at
a Stone sheep is I th in k I can en­
lig h ten you by telling you th a t w hen
you look th ro u g h glasses and scan a
m ountain, th e th in g s you pick up w ith
th em and th in k are sheep u sually tu rn
out to be ‘sto n es’. W e w ere gone for
fo rty days. Quail lost 18 pounds and
I lost 10. W e got some nice trophies
and had a lot of fu n .”
T he scene of th e ir h u n tin g expedi­
tio n is not accessible by tra in or m otor
and th e p a rty c h artered a plane to
reach th e spot.

W. J. P ickerin g, p resid en t of the
A llen W ales A dding M achine Corpo­
ratio n of New Y ork has ju st re tu rn e d
from a m o n th ’s trip to th e Pacific
Coast. Mr. P ick erin g visited th e com­
p an y ’s dealers in various cities on his
trip, and tells us th a t in spite of the
loss of th e ir E u ro p ean business, th e ir
increased sales in the U nited States
have m ore th a n m ade th is up and 1940
w ill be th e ir best year in the total
n u m ber of m achines sold, and the
total volum e of business.

W e w ere in terested w hen the tele­
phone ran g in th e office of a vice
president of one of the larger N ew
York banks, w here we w ere calling,

and a discussion ensued concerning an
$11,000,000 loan to an airplane com­
pany.
The loan had been discussed th a t
m o rning by th e officers of th e bank
and th e m oney w as to be used to
build an en larg em en t to a p resen t air­
plane factory. A fter th is w as done
th e g overnm ent w ould give them an
o rder for airplanes.
T he go v ern m en t did n ot guaran tee
an y th in g and th e com pany w as not
assu red th a t th e o rder m ight not be
cancelled in case th e w ar stops, or new
conditions arise. In o th er w ords no­
body really “prom ised to pay any­
body.” T he loan w as for 5 y ears at
tw o p er cent and w hile th is bank, like
m ost o th er banks w e know about, was
anxious to cooperate w ith th e govern­
m ent, it did n ot w a n t to get out on a
lim b for $11,000,000.
E d W yn n w isecracks in his new
show “T his m u st be a R epublican
H om e as I don’t see any fireplace any­
w here.”

At N iagara F alls all th e pow er
p lan ts have reg u lar guards w ho patrol
aro u n d th e p ro p erty day and night.
D. R. W esslin g, head of th e Wessling Services, Counsel on B ank Public
R elations Des Moines, should be very
proud of th e y ounger generation of
W esslings, w ho are m aking quite a
nam e for them selves in college circles.
Dan W essling, jr., th e class of ’40 at
th e W h arto n School of Finance and
Commerce, U n iv ersity of P en n sy l­
vania, is th e coxsw ain on th is y e a r’s
U n iv ersity of P enn sy lv an ia V arsity
L ightw eight Crew. H e m ade th e same
position last y ear likewise.
Lois W essling, class of ’43 a t N o rth ­
w estern U n iversity is a m em ber of the
N o rth w estern W om en’s Rifle Team
w hich has w on th e m ajo rity of th eir
m atches ag ain st o ther colleges and
universities.

23
Jean W allace, d a u g h ter of H en ry A.
W allace, w ell-know n vice p resid en tial

candidate, cam e back from a p a rty th e
o th er n ig h t a t C onnecticut College,
N ew London, w h ere she is a sopho­

m ore w ith W illkie b u tto n s pinned all
over th e fro n t of h er dress. E v e ly n
I)e P u y , w ho also atten d s Connecticut,
asked Jean w hy she w as w earing all
of th e W illk ie b u tto n s and Jean re ­

plied, “I th in k it is a good w ay to get
the bu tto n s out of circulation and to
help m y Dad.”
G overnor E ev erett C. S alton stall of
(T u rn to page 34, Please)

Mid-Continent Airlines
In O peration
W IF T and certain has been th e
g ro w th of com m ercial aviation,
now here b e tte r reflected th a n in
th e tra n sitio n from th e slow 90-milean-hour planes of 14 y ears ago to th e
three-m ile-a-m inute stra to lin e rs now
going into service. The ch arts below
depict th is am azing developm ent . . .
in volum e of business, in revenues, in
natio n al im portance . . . of A m erica’s
air tra n sp o rt com panies.
M id-Continent A irlines occupies a
strateg ic position in th e n a tio n ’s air
tra n sp o rt netw ork. In co rp o rated on

S

Seaboards, to th e en tire N orthw est
and Canada, to Chicago, to th e Black
H ills and Rocky M ountain Region, and
to Mexico, th e Gulf, Texas and the
G reat S outhw est Area.
M otivated by rapidly rising traffic
volum e, recently th e Com pany p u r­
chased a new fleet of all-m etal Lock­
heed Lodestars. These planes are
ideally adapted to day-to-day handling
of large payloads at low ton-m ile and
seat-m ile costs.
M id-Continent A irlines began serv ­
ice N ovem ber first on additional m ile­
age recen tly g ran ted th e Com pany
covering flights betw een St. Louis, Des
Moines and M inneapolis, and from
K ansas City to Des Moines to M inne­
apolis. All new m ileage flown by th e
Com pany w ill c arry airm ail, passen­
gers, and express.
Because of th is expansion program ,
on October 17 th e Com pany offered
100,000 shares of its Common Stock at
$5.00 a share, th ro u g h th e in vest­
m ent b anking firm of M urdoch,
D earth & W hite, Inc., Des Moines,
and o th er pro m in en t in v estm en t b an k ­
ers th ro u g h o u t th e U nited States. The
offering w as so well received by the
public th a t the stock w as over-sub­
scribed several tim es on th e offering
date and im m ediately sold at a p re ­
mium.

MAIL REVENUES

PASSENGER REVENUES
From $80,867 in 1937 to
nearly $223,000 in 1940

May 6, 1936, th e Com pany is engaged
in th e tra n sp o rta tio n of passengers,
m ail and express by air, p u rsu a n t to
a certificate of public convenience and
necessity issued by th e Civil A ero­
nautics A u th o rity for its en tire route.
The states and principal cities served,
as show n on th e map, com prise a di­
versified and w ell populated te rrito ry .
P re se n t schedules of th e Company'
encom pass 6,700 flying m iles p er day.
T h ro u g h o u t its territo ry , the Com­
p an y ’s routes follow a favorable te r­
rain, especially suited to m aintenance
of reg u lar schedules and to profitable
a ir tra n sp o rt operation.
K now n as “The G reat P lains R oute,”
th e air routes of M id-Continent A ir­
lines serve one of th e rich est portions
of th e M ississippi Valley, practically
bisecting th is broad te rrito ry from
N o rth to South. As a result, th e Com­
p any operates as a m ajor feeder line
to leading tra n sco n tin en tal air line
system s, as w ell as an in te rsta te tra n s ­
p o rtatio n system . D irect connections
are provided a t its various term nials
w ith six m ajor air lines. W ith fast,
dependable service it links the p rin ci­
pal business and population centers
and m akes th e advantages of air tra n s ­
p o rtatio n w idely and econom ically
available. C onvenient connections are
provided to th e A tlantic and Pacific

1940

From $220,139 in 1937 to
nearly $508,000 in 1940

EXPRESS REVENUES
From $3,410 in 1937 to
nearly $5,000 in 1940

1937

1937

■
N orthw estern B anker N ovem ber 1940

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

24

No. V i l i of a Series

ELECTRICITY...
the

ol

You m ay be wondering as to what the

The Investm ent Bankers of Iowa have pro­

Investm ent Bankers of Iowa have had to

vided a ready market for these revenue

do w ith bringing “ELECTRICITY to the

bonds.

Lamps of Iow a.” More, perhaps, than you

into one of the country’s forem ost markets

ever im agined.

for this type of security.

In fact, Iowa has been developed

As a result, m unicipally owned utilities can
During the past 10 years, the Investm ent

today finance their requirem ents at rates

Banking houses of Iowa have handled

advantageous to them selves.

approxim ately six and a half m illion dol­
lars in Iowa electric ligh t plants revenue
bonds— for the financing of original con­
struction, or for the purchase of additional
equipm ent.

Revenue bonds are not figured in the m u­
nicip ality’s debt statement.

Because of

this, a m unicipality can retain its taxable
credit for the issuance of general obligation
bonds, for other purposes.

During the same 10 year period, approxi­

Electricity and water have been brought

m ately two and a half m illion dollars in

into scores of thousands of Iowa homes

water revenue bonds have been handled by

through the sound, low-cost financial un­

Iowa houses for the purchase, or equip­

derwriting service rendered by the Invest­

m ent, of m unicipal water works plants.

ment Banking interests of Iowa.

Iowa Investm ent Hankers A ssociation
N orthw estern B anker N ovem ber 1940

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

25

The M onth’s M arket Maneuvers
The m arkets w ere
slig h tly better in
O c to b e r . P r i c e
ch an ges w ere few
— hut stock s and
high grade bonds
r o s e fraction ally.
T his d e s p i t e the
outbreak of w ar on
a n ew fron t in the
JA M E S H. C L A R K E
B alkans. A nd de­
spite a fight on the political fron t u n ­
equalled sin ce 1916.
T h e fo r e ig n situ a tio n Avas a n e g lig i­
b le fa cto r in th e m o n th ’s m a r k e ts. T h e
c o n fe r e n c e s o f H itle r an d M u sso lin i
Avere Avatched c lo s e ly — th e in v a s io n o f
R u m a n ia A\ra s v ie w e d w ith su s p ic io n —
th e d e v e lo p m e n ts in S p a in h e ld th e
in te r e s t o f a ll — a n d th e a tta c k on
G reece Avas fo llo w e d in te n tly .
But
m a rk et p r ic e s r e m a in e d firm . E v e n
th e w a r lik e a ttitu d e o f J a p a n sp e n t it ­
s e lf b efo re th e m o n th AAra s h a lf o v er.
A g a in th e v o lu m e o f tr a d in g r e ­
m a in e d s m a ll in th e sto c k m a rk et. N o
d a y s in w h ic h a m illio n sh a r e s Avere
tra d ed — o n ly tAvo d a y s, in fa c t, Avhen
tr a d in g e x c e e d e d e ig h t h u n d r e d th o u ­
sa n d . B u t th is is o n ly n a tu r a l. W ith
th e n u m e r o u s u n c e r ta in tie s b o th a t
h o m e a n d abroad , la rg e a n d sm a ll inv e s to r s a lik e a re on th e sid e lin e s.

On the last day of trading in S ep te m ­
ber the average of the in d u stria l stocks
used in the Dow-Jones com putations
stood at 132.64. W e are w ritin g this
on th e m o rn in g of October 31— last
n ig h t’s close w as 132.98— in short, a
gain in th e averages of .34 in a m o n th
of trading. There have been tw e n ty five days of m a rk e t operations in the
m o n th — and the resu lts on a day to day
basis are practically even. On th irteen
days gains w ere recorded and on
tw elve days there w ere losses. The
m o st significant change in m a rk e t
prices occurred on October 8-—th e day
the S tate D ep a rtm en t w arned A m e ri­
cans to get out of the F ar E ast. T here
was a break of 2.20 points th a t day.
B u t it w as m odified by later develop­
m en ts. On the day th a t Ita ly invaded
Greece th e m a rk e t broke 49 cents—
practically nothing. A n d th e vo lu m e
of trading w as less th a n five hundred
thousand shares. So w e repeat— the
foreign situ a tio n w as of little im p o rt in
October’s m arkets.
T h ere w ere no developm ents d u rin g
th e m o n th to d istu rb U nited States
G overnm ent bond prices and as a re ­
su lt th e y edged upw ard. The long

Prepared for
The Northwestern Banker

By James H. Clarke
Assistant Vice President
American National Bank & Trust Co.
Chicago

2 %’s of 1965/60 w ere quoted around
107.20 on th e bid side on Septem ber
30—th is m o rning th ey are 107.30. The
new 2s of 1955/53 have m oved up
from 101.20 to 102.5 in th e sam e period.
T h a t th ere w ill be no new financing
p rio r to th e election is a p p aren t—w h at
w ill occur after N ovem ber 5 is a m a t­
te r of m uch discussion. The T reasu ry
is handicapped in raising new m oney
—unless it issues th e sh o rt term de­
fense notes—by th e $45,000,000,000 s ta t­
u to ry debt lim it—w hich is b u t $1,000,000,000 aw ay. T here are no m atu rities
to m eet in D ecem ber—th a t has been
ta k e n care of—b u t th e re are $677,000,000 iy 2s of M arch 15, 1941, and
$545,000,000 3%s w ith th e sam e option­
al m a tu rity w hich th e g overnm ent
w ould like to get out of th e w ay th is
year. W ith th e outcom e of th e elec­
tion in doubt as we w rite th is—no
good prediction can be m ade on the
course of financing. T h at th e re w ill
have to be sizeable offerings over th e
n e x t few m onths, how ever, is a cer­
tainty.
O ctob er brought m o re a c tiv ity in th e
Avay o f neAv co rp o ra te b o n d is s u e s —
p r a c tic a lly a ll b e in g r e fu n d in g s. T w o
e a r ly o ffe r in g s Avere r a ils— $20,000,000
o f G reat N orthern 4s and $27,300,000 o f
NeAv Y ork C onnecting Sy2s o f 1965.
N e ith e r is s u e AAe n t o u t th e w in d ow and
AATh ile th e G reat N o r th e r n s are c le a n e d
up th e r e are apparently so m e NeAv
Y ork C o n n e c tin g s s t ill lo o k in g fo r a
b u yer; $18,300,000 o f C en tra l M ain e
PoAA^er 3 y 2s o f 1970 m e t Avith sa tis fa c ­
to r y reception s c o n sid e r in g th e lo n g
m a tu r itie s a n d th e fa c t th e y w e r e
p riced p r a c tic a lly o n th e m arket. T h e
la r g e s t o ffe r in g o f th e m o n th Avas th e
S o u th e r n C a lifo rn ia E d iso n 3s o f 1965,
$108,000,000 in a ll— th e is s u e h a d 142 in
th e u n d erw ritin g g ro u p . A nd w ith th e
b ig fiv e in surance c o m p a n ie s n o t b u y ­
in g it to o k a r e a l s e llin g job to g e t rid
o f th e s e a t th e o ffe r in g p rice o f 104.
T h ere is a b id noAA’, lioAAever, o f 104
o n th e s tr e e t an d th e m a r k e t is eATid e n tly a fr e e o n e. C rane C o m p an y
so ld $10,500,000 o f te n y e a r d e b e n tu r e s

AA'hich w e n t Avell an d th e $16,500,000
S an A n to n io P u b lic S e r v ic e 3Y2s o f
1970, m e n tio n e d la s t m o n th , Avere sold
to in su r a n c e c o m p a n ie s — a fte r m u ch
c o m p e titiv e b id d in g . T h e $45,000,000
Y o u n g sto w n S h e e t & T u b e 3M s o f
1970— ju s t offered — Avere s Ioav. T h e se
r e fe r e n c e s c o v e r m o st of th e la rg er
p ie c e s o f fin a n c in g .

I f m a rket conditions rem ain satis­
factory, there should be fu rth e r re­
fu n d in g s in N ovem ber. The $32,000,000 of In ternational Paper Company
bonds are still delayed. E l Paso E lec­
tric expects to offer $6,500,000 3 Ms-—
B oston E lectric Illu m in a tin g m ay do a
$53,000,000 refunding job— D etroit E d i­
son is considering $100,000,000 and
there is the possibility of Columbia
Gas & E lectric doing the sam e am ount.
I f all of this m ateralizes, N o vem ber
w ill be active.
The second grade bond m ark et did
not do so w ell in October—especially
the rails. Follow ing th e sub stan tial
rise in Septem ber, prices declined in
sy m p ath y w ith a falling off in carloadings’ figures com pared w ith last year.
R ailroad executives consider th is de­
velopm ent as u n im p o rtan t and—-due to
special factors—expect it to change.
T his m o rn in g ’s figures show a gain in
last w eek’s loadings of 23,762 cars—
p erhaps th a t is th e beginning of th e
tu rn about.
In d u str ia l a c tiv ity in O ctober co n ­
tin u e d a t a h ig h r a te Avith ste e l m ill
o p e r a tio n s r e a c h in g 95.5 p er c e n t o f
th e o r e tic a l ca p a c ity . EA>en at th is rate
th e b a c k lo g o f o rd ers p iled up. E le c ­
tr ic poAver o u tp u t re a ch ed an a ll tim e
h ig h d u r in g th e m o n th — an d d em an d
fo r n e w ca rs e n a b led th e a u to m o b ile
c o m p a n ie s to in c r e a s e th e ir sc h e d u le s.
C u r r e n tly p r o d u c tio n is r u n n in g a b o u t
115,000 ca rs p er Aveek — a lth o u g h a
g ra d u a l d e c lin e m a y be e x p e c te d a s Ave
g e t in to th e la tte r p a rt o f N o v em b er.
B r itish bxiying h ere, p lu s ou r OAvn n a ­
tio n a l d e fe n s e a c tiv ity , a ss u r e s g o o d
b u s in e s s — hoAxr g o o d p rofits Avill b e,
h o w e v e r , w ill d ep e n d on ta x e s . A n d
Iioav bad th e n e x t ta x b ill w ill b e n o
o n e ca n fo r e te ll.
A s Ave Avrite th is c o n c lu d in g para­
g ra p h , r e p o r ts c o m e o f in c r e a se d sto ck
m a r k e t a c tiv ity to d a y . H ig h e r p rices
a re th e r u le a n d v o lu m e h a s a lrea d y
p a sse d o n e m illio n sh a r e s. So O ctober
c lo s e s w ith th e fir st r e a l actixuty sin c e
e a r ly S e p te m b e r — m a y b e NoArem b er
w ill b e m o re in te r e s tin g .

N orthw estern B anker N ovem ber 1940

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

26

Buy Polk Bonds
H alsey, S tu a rt and Com pany, Inc.,
of Chicago w ere th e successful bidders
last m o n th on an issue of $550,000 of
Polk C ounty H ospital Bonds in Des
Moines. T h eir bid w as 2 p er cent in ­
te re st and a prem ium of $12,851. The
bonds are m a tu red over a period of 18
years, ending N ovem ber 1, 1960.
The bond sale paves th e w ay for con­
stru ctio n of a new county g eneral ho s­
p ital on H ickm an Road in Des Moines.

Chase National
The sta te m e n t of th e Chase N ational
B ank for Septem ber 30, 1940, show s
deposits of th e b an k on th a t date w ere
$3,251,342,000, a new high figure for
an y re p o rtin g date, com paring w ith
$3,190,823,000 on Ju n e 29, 1940, and
$2,817,977,000 on Septem ber 30, 1939.
T otal resources am o u n ted to $3,522,990,000 com pared w ith $3,472,779,000 on Ju n e 29, 1940 and $3,097,011,000
on Septem ber 30, 1939; cash in th e
b a n k ’s v au lts and on deposit w ith th e

F ed eral R eserve B ank and other
banks, $1,440,940,000 com pared w ith
$1,467,007,000 and $1,316,611,000 on the
respective
dates;
in v estm en ts
in
U nited States G overnm ent securities,
$1,045,425,000 com pared w ith $1,039,031,000 and $808,804,000; loans and dis­
counts, $625,579,000 com pared w ith
$607,859,000 and $601,290,000.
On Septem ber 30, 1940, th e capital
of th e b ank w as $100,270,000 an d th e
su rp lus $100,270,000, b oth am ounts u n ­
changed. The undivided profits ac­
count on Septem ber 30,1940, am ounted
to $36,535,000 com pared w ith $33,821,000 on Ju n e 29, 1940 and $34,058,000 on
S eptem ber 30, 1939.
E arn in g s of th e bank for th e th ird
q u a rte r of 1940 am ounted to 37 cents
per share, as com pared w ith 44 cents
earned in th e th ird q u a rte r a y ear ago.

Calls for Reductions
F u rth e r reductions in the prem ium s
for b a n k e rs’ b lan k et bonds are called
for by th e loss experience of banks, ac­

V. W. B r e w e r C o .
M

u n ic ip a l

B

o n d s

T h e d eb t p ay in g record o f b o th th e D akota states is clear.
T h e ir b o n d s are rated “A ” by M ood y.

FIR ST N A T - S O O LINE BLDG.

cording to th e an n u al rep o rt of W il­
liam B. Gladney, ch airm an of th e In ­
surance and P rotective Com m ittee of
th e A m erican B ankers Association.
Mr. Gladney, w ho is vice p resident of
the F idelity B ank and T ru st Company
a t B aton Rouge, L ouisiana, states in
his rep o rt th a t du rin g th e seven years
ended D ecem ber 31, 1939 th e surety
com panies re tu rn e d to th e banks in
loss paym ents only thirty-five cents
out of each prem ium dollar paid to
them . He rep o rts th a t his com m ittee
has urged fu rth e r reductions in th e
in su ran ce prem ium s and th a t it has
asked th e ra tin g b u reau m ore th a n
once “how th e su rety com panies can
ju stify reta in in g for expenses and
profit so m uch as sixty-five cents out
of every prem ium dollar received and
re tu rn in g to th e in su red banks only
thirty-five cents for losses incurred.
T hus far no satisfactory explanation
has been forthcom ing from th e ra tin g
b u reau ,” he adds.
Mr. G ladney states th a t since last
Ju n e th e A. B. A. In su ran ce and P ro ­
tective Com m ittee has recom m ended
to th e ra tin g b u reau th a t th e rates for
th e No. 8-Revised B lanket Bond should
be reduced an o th er 16% per cent.
“Briefly,” he says, “we proposed th a t
the low er prem ium s now charged for
th e No. 2 Bond should apply to th e
No. 8-Revised F o rm and th a t th e No.
2 Bond rates should be reduced 14.3
per cent. No reduction has been m ade
in th e No. 2 Bond rates since October
1, 1938,” he observes, “except th e
M arch 1, 1940 decrease in th e charge
for adding m isplacem ent coverage.”

Mechem Resigns

M INNEAPOLIS

E d w ard E. B row n, p resid en t of The
F irs t N ational B ank of Chicago, an-

N E W ISSUE

This advertisement is not an offering of these Shares for sale, or a solicitation of an offer
to hay any of such Shares. The offering is made only by the Prospectus.

100,000 Shares

Mid-Continent Airlines, Inc.
(A D e la w a re C o rp o ratio n )

C om m on Stock
P a r V a lu e $1 P e r S h a re

Price: $ 5 .0 0 P er Share
P rospects available from such of the follow ing dealers as are
registered dealers in securities in this State:

M urdoch, D earth & W h ite
IN C O R PO R A T E D

Des M oines, Io w a - S t . L o u is, M isso uri

G eorge F. R yan & Co.

K alm an & C om pany, Inc.

C h icago, Illin o is - S t. L o u is, M isso u ri

S t. P a u l, M in n eso ta - M in n eap olis, M inn esota

T h is A d vertise m en t A p p e ars A s a M a tte r o f R ecord O nly, A ll o f T h is Issu e H a v in g B een Sold

N orthw estern B anker N ovem ber 1940

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

27
nounces th e resig n atio n of Jo h n C.
M echem, one of th e senior vice p resi­
den ts of th e bank. Mr. M echem is a
L ie u te n a n t Colonel in th e Officers R e­
serve Corps, U nited States A rm y an d
is being o rdered to active service in
W ash in g to n w h ere he is assigned to
th e office of th e A ssistan t S ecretary
of W ar.
Mr. M echem has had a long an d
honorable career in th e b an k in g b u si­
ness, h av in g e n tered th e service of
th e b an k in 1920. He is a g rad u ate of
th e U n iv ersity of M ichigan and th e
H a rv a rd L aw School. P rio r to his
em ploym ent in the b an k he practiced
law in Chicago and w as la te r con­
nected w ith Lee H igginson & Com­
p an y in Boston. H is hom e is in Lake
F o rest, Illinois. He served in th e last
W orld W ar as C aptain in th e U nited
States A rm y.
Mr. B row n said th a t w hile he knew
Mr. M echem ’s m an y outside friends
as w ell as those in T he F irs t N ational
B ank w ould h e a r of his resig n atio n
w ith g re a t reg ret, n ev erth eless th ey
w ould appreciate his p atrio tic m otives
in accepting his call to d u ty in th e
service of his co u n try a t th is tim e.

Heads Bank Auditors
T he N ational A ssociation of B ank
A uditors and C om ptrollers recen tly
concluded th e ir six teen th a n n u al con­
ven tio n in St. Louis. C harles Z. Meyer,
com ptroller of The F irs t N ational

vice president, an d first vice president.
He has also been active in th e Chicago
B ank A uditors Conference, having
served in all official capacities. H is ac­
tiv ity is a ttested by th e fact th a t th ere
are m ore au d ito r and com ptroller con­
ferences in th e seventh d istrict th a n
an y o th er R eserve district.
Mr. M eyer has been associated w ith
The F irs t N ational B ank since 1912.
He served his ap p renticeship in th e
m essenger and credit d epartm ents,
and has been associated w ith b ank
au d iting since his ap p ointm ent to The
F irs t N ational’s trav elin g a u d ito r’s
staff in 1924. H e w as m ade a ssistan t
cashier in 1930; au d ito r in 1932; and
com ptroller in 1939. He is a m ajor in

the F inance D ivision of The U nited
States A rm y R eserve Corps.

G olf Tournament
One h u n d re d fifty em ployes, officers
and directors of A m erican N ational
B ank and T ru st Com pany of Chicago
atten d ed th e b a n k ’s ann u al Colum bus
Day Golf T o u rn am en t a t T w in O rchard
C ountry Club. H a rry A. M eyer w on
th e cham pionship w ith low gross of
76, and w as aw erded th e new D irect­
o rs’ Cup at th e evening din n er w hich
clim axed th e day’s events. N um erous
o th er aw ards w ere given out for golf
and o th er sports. E dw in N. Van
H orne, executive vice president, p re­
sided as toastm aster.

is engaged primarily in facilitating wholesale distribution
and retail sales of the following products of General
M otors C orporation and its w orld 'w id e a ffilia tes:
CADILLAC, LA SALLE, BUICK , OLDSMOBILE, PONTIAC,

automobiles; fr ig id a ir e appliances for refrig'
eration and air conditioning; DELCO lighting, power and
heating equipment; g m c trucks; Be d f o r d , v a u x h a l l
and other foreign made automotive vehicles.

Ch e v r o l e t

The business consists of investments in self'liquidating
credits, widely diversified as to region and enterprise,
capital em ployed being in excess of $ 8 0 ,0 0 0 ,0 0 0 .
In obtaining short term accommodation, g m a c issues
one standard form of note. This obligation it offers to
banks and institutions, in convenient maturities
and denominations at current discount rates.

G EN ER A L
MOTORS
INSTALMENT

P L A N
C H A S. Z. M E Y E R

These
B ank of Chicago w as elected p resident,
to succeed J. W. Massie, auditor, Re­
public N ational B ank of Dallas.
Mr. M eyer h ad served p reviously as
natio n al com m itteem an in th e seventh
district, s e c re ta ry -tre a su re r, s e c o n d

notes

are available, in limited amounts,
upon request.

EXECUTIVE OFFICE
NEW YORK

BRANCHES
IN PRINCIPAL CITIES

N orthw estern Banker N ovem ber 19W

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

28

IO W A
Investment Bankers
Association

W A LT ER E. Y IE T H
P resid en t
D aven po rt

Organized 1935

ATHAN D. M cClure, m an ag er of
th e Chicago office of H a rrim a n
Ripley & Co., Incorporated, w as
elected ch airm an of th e C entral States
G roup of the In v e stm e n t B ankers As­
sociation of A m erica a t its an n u al
m eeting. The “re g u la r tic k e t” w as
unanim ously approved. In addition
to Mr. M cClure it included: Vice C hair­
m an, Jo h n S. Loomis, p resid en t of The
Illinois Com pany of Chicago; Secre­
tary -T reasu rer, D. D ean McCormick,
m an ag er of th e Chicago office of Alex.
B row n & Sons; and th e follow ing for
three-y ear term s on th e executive
com m ittee: Douglas Casey, vice p re si­
den t of A. C. A llyn and Company,
Inc.; P e rry D ryden, vice p resid en t of
E. H. Rollins & Sons Inc.; H ard in H.
Haw es, a ssista n t vice p resid en t of th e
H a rris T ru st and Savings B ank. Ju lien
H. Collins, vice p resid en t of H arris,
H all & Com pany, re tirin g ch airm an
of th e group, w as nam ed an ex-officio
m em ber of th e executive com m ittee.

N

RO Y W. L E R IC H E
S e c re ta ry
Des M oines

M METT F. Connely, presid en t of
the In v estm en t B ankers Associa­
E
tion of A m erica, in San Francisco to
a tte n d a m eeting of th e California
G roup of th e association, issued a
sta te m en t in response to com m ents
included in a speech prep ared by
Jerom e N. F ran k , ch airm an of the
S ecurities and E xchange Commission,
for the an n u al convention of the
A m erican In stitu te of A ccountants a t
M em phis, F riday, October 18. Mr.
Connely’s statem en t follows:
“Jerom e N. F ran k , ch airm an of the
Securities and E xchange Commission,
caused an address to be delivered a t
M em phis before th e an n u al conven­
tion of th e A m erican In stitu te of Ac­
countants. In it he said th ere is be­
ing paraded about th e co u n try a r i­
diculous p icture of th e SEC. He said
th is is being paraded about th e coun­
tr y ‘by a sm all group of ultra-con­
serv ative in v estm en t b an k ers w ho are
engaged in an effort to have th e Se­

Federal Discount Corporation
D ubuque, Iowa

AUTOMOBILE FINANCE
T im e P a ym en t Plans for
Purchasers of A u to m o b iles and H ousehold A pplian ces
m a ■
SMALL LOANS
■ ■ ■
B ra n ch es in Iow a— M in n esota— W iscon sin
Capital, Surplus and U ndivided Profits
Exceed One M illion Dollars
■ ■ ■

Short Term Collateral Trust Notes
In form ation on R equest
N orthw estern B anker N ovem ber 1940

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

curities Act g u tted by am ending it in
such a w ay th a t th e SEC w ould be
pow erless to p re v e n t th e sale of cer­
tain large security issues—even if the
reg istratio n statem en ts w ere clearly
false and m isleading.’
“I ask you to m ark w ell those words.
The press at once assum ed th a t th ey
w ere intended to apply to m em bers of
the I. B. A. As applied to m em bers
of the I. B. A. th ey are u n tru e and Mr.
F ra n k m u st know th a t th ey are u n ­
true. Tim e and again we of th e In ­
vestm en t B ankers A ssociation have
made it clear th a t we strongly support
the req u irem en ts of fair and adequate
disclosure of th e ch aracter of th e se­
curities offered or sold to th e public.
It is and has alw ays been a fu n d a­
m ental principle of our policy th a t the
federal law m u st adequately safeguard
investors against frau d u len t tra n sa c ­
tions. B ut Mr. F ra n k ’s precise w ords
adm it of no o th er in te rp re ta tio n th an
th a t he is consciously endeavoring to
create in th e public m ind an im pres­
sion th a t we are seeking so to change
th e Securities A ct th a t th e SEC w ould
be im potent to p rev en t frau d u len t
transactions. N othing could be fu r­
th e r from th e tru th nor m ore de­
liberately m isleading.
‘The I. B. A. certain ly has not nor
to m y know ledge has any other group
of in v estm en t b an k ers ever suggested
th a t any change of any kind be made
in Section 17 of the 1933 Act w hich
deals w ith frau d u len t tran sactio n s or
in Section 20 of th a t Act w hich em ­
pow ers th e SEC to invoke the in ju n c­
tive process to p rev en t practices w hich
co n stitute or w ill co nstitute a viola­
tion of th e provisions of th e 1933 Act.
T his being so I should like to know
how it is possible for Mr. F ra n k to
create th e im pression publicly and de­
liberately th a t an y group of in vest­
m en t b an k ers is conducting ‘a cam ­
paign to have th e Securities Act dis­
em bow eled.’
“In his M em phis speech Mr. F ra n k
com pletely ignored th e fact th a t in
accordance w ith an a rran g em en t en­
tered into about th e m iddle of last
Ju n e w ith th e H onorable Clarence F.
Lea, C hairm an of th e H ouse Com m it­
tee on In te rsta te and F oreign Com­
merce, a series of conferences has
been tak in g place betw een th e staff

29
of th e SEC and re p re se n ta tiv es of
th e I. B. A., th e N ational A ssociation
of Securities D ealers, Inc., an d o th er
in terested elem ents. P ending th e o u t­
come of these conferences w ith th e
Com m ission itself, n e ith e r th e I. B. A.
n o r any o th er group has to m y know l­
edge been actively advocating an y
specific changes in th e securities legis­
lation.
“W e have been advocating an d w ill
continue to advocate, in general term s,
sim plification of procedures and elim i­
n atio n of those provisions of th e ex ist­
ing law s u n n ecessary for th e p ro tec­
tion of in v esto rs and w hich operate to
im pede th e efficient operation of th e
priv ate capital m ark et. W e have been
m aking ev ery effort th ro u g h our re p ­
rese n ta tiv e s to discuss th ese calm ly
and dispassionately w ith th e Securi­
ties and E xchange Commission. W e
w ill continue th ese efforts b u t th e y
m ay n o t be v ery helpful if our hon esty
of purpose is to be im pugned in public
statem en ts m ade by m em bers of th e
SEC itself.”

Conventions
N ational and Sectional
N ovem ber 7-8: M id-Continent A.B.A.

T ru st Conference, Chicago, Il­
linois.

U nited States Sav­
ings and L oan League, Chicago,
Illinois.
D ecem ber 9-10: S o u th ern Conference
of B ankers A ssociation Secre­
taries, Louisville, K entucky.
D ecem ber 9-13: In v estm en t B ankers
A ssociation of A m erica, H olly­
wood, Florida.
F ebruary
4-6: A.B.A.
M id-W inter
T ru st Conference, W aldorf-As­
to ria H otel, N ew Y ork City.
May 22-24: N ational Safe D eposit As­
sociation, H otel S tatler, Buffalo,
New York.
Ju n e 2-6: A m erican In stitu te of B ank­
ing, St. F ran cis Hotel, San
Francisco, California.

May 21-23: Texas, H ouston.
May 22-24: V irginia, Jo h n M arshall
Hotel, Richm ond.
May 26-28: Illinois Golden Jubilee,
P alm er House, Chicago.
Ju n e 4-5: W isconsin, H otel Schroeder,
M ilwaukee.
Ju n e 16-17: Idaho, Sun Valley.
Ju n e 17-18: N o rth Dakota, H otel P a t­
terson, Bism arck.
Ju n e 20-21: M ontana, New Florence
Hotel, Missoula.
Ju n e 26-27: South D akota, H otel
F ran k lin , Deadwood.
Ju n e 26-28: M ichigan, G rand Hotel,
M ackinac Island.

State

W illiam M. S herrill, advertising
m anager of th e F irs t N ational B ank
of St. Louis has been nam ed publicity
d irector for th e M issouri B ankers U ni­
v ersity C onference to be held Ja n u a ry
21-23, a t Columbia, Mo.

N ovem ber 11-15:

January 20-21: W isconsin M id-W inter

Conference, H otel Pfister, Mil­
w aukee.
January 30: Illinois M id-W inter T ru st
Conference, Chicago.
F ebruary 21: Ohio M id-W inter Meet,
Columbus.
M ay 8-10: Oklahoma, S kirvin Hotel,
O klahom a City.
May 12-14: M issouri, E lm s Hotel, E x ­
celsior Springs.
M ay 14-15: Indiana, Claypool Hotel,
Indianapolis.
May 15-16: K ansas, K ansas City.

Directs Publicity

Appointments
G u aran ty T ru st Com pany of New
Y ork announces th e appointm ents of
W alter E. E itn e r and E d w ard Donlan,
Jr. as second vice presidents. Mr.
E itn e r w as form erly an a ssistan t sec­
re ta ry and Mr. D onlan w as an assist­
a n t tru s t officer.

Interest exempt from all present Federal Income Taxation

$ 550,000

Polk County, Iowa
(D E S M O IN E S )
2%

H o sp ita l B o n d s

Due Serially Novem ber 1, 1942 through 1960
B onds m aturing N ovem b er 1, 1946 and later are optional fo r paym ent at par and accrued
interest on N o vem b er l, 1945 or on any interest paym ent date thereafter.
These B onds will constitute, in the opinion of counsel, valid and legally binding obligations of Polk
County, payable from ad valorem taxes to be levied against all the taxable property therein,
w ithin the lim itations prescribed by law.
•

Prices to yield 0.40% to 1.65%
(N o v e m b e r 1, 1946 and la te r m a tu r itie s fig u re d to th e fir s t optio n a l d ate, N o v e m b e r 1, 191.5
a fte r w h ich the y ie ld is the coupon ra te , 2% , u n til red eem ed )
T h e se B o n d s are offered w h en , as and i f is su e d and rec e iv ed b y u s and s u b je c t to final a p proval o f le g a lity b y M e ssrs. C hapm an
and C u tler o f C hicago, a copy o f w hose opinion w ill be fu r n ish e d upon d e liv ery .

HALSEY, S T U A R T & CO.
C H ICAG O , 201 S o u th La Salle S tre e t
A N D
O T H E R
P R I N C I P A L

In c .

N E W Y ORK, 35 W all Street
C I T I E S

D ated N ovem ber 1, 1940. In te re s t p ayable sem i-annually M ay 1 an d N ovem ber 1 ; both p rin c ip a l an d in te re s t payable at the office
of the C ounty T rea su re r, Des Moines, Io w a. Coujjon B onds in th e denom ination of $1,000. T he in form ation contained herein
has been c arefu lly compiled from sources considered reliable a n d w hile n o t g u a ra n te e d as to com pleteness or accuracy, w e believe
it to be correct as of th is date.
O ctober 30, 1940

N orthw estern Banker N ovem ber 1940

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

30

Annua! Outing

COMMERCIAL
INVESTM ENT
TRUST
IN C O R P O R A T E D

The an n u al outing of th e City N a­
tional B ank and T ru st Com pany of
Chicago w as held a t th e M edinah
C ountry Club last m onth and w as a t­
tended by several h u n d red officers and
em ployes.
In th e golf to u rn am en t, the low
gross aw ards were: Jo h n Nolan, 82;
P. R. Clarke, president, 85; M. C. Corns,

86; V ernon Galitz, 86; K eith Eldridge,
87; and Clark G ardner, 87. Low n et
scores were: C. S. M acferran, 69; Jo h n
F ollett, 69; A. F. Cook. 70; M. E. Shana­
han, 71; C asm ir Rosek, 72; and H erb ert
Burgess, 72.
Besides th e golf to u rn am en t, th ere
w as baseball, tennis, horseshoes, and
bridge. D ancing followed a dinner
and a n um ber of acts of professional
e n te rta in m e n t in the evening.

C o m m e r c ia l I n v e s t m e n t
T r u s t Incorporated, with

capital and surplus in excess
of $56,000,000, provides a
nation-wide sales finance
service through subsidiary
companies with a network
of branch offices throughout
the United States. This
service, in the main, consists
of p u r c h a s in g self-liqui­
dating accounts, and ex­
tends to automobile dealers,
household appliance dealers,
and to m anufacturers and
dealers in many lines of in­
dustrial, commercial and
professional equipment, in­
cluding the heavy goods in­
dustries.

C. I. T. offers its stand­
ard notes for short term
accommodation in varying
am ounts from $1,000 to
$100,000, in maturities from
60 to 270 days and at cur­
rent discount rates. These
notes are payable at any of
our 292 depositary banks
located in principal cities
throughout the country.

JPAEE RC]

A m ong th e m an y d isp la y s a t th e re c e n t A m e ric a n B a n k e rs C o n v e n tio n a t A tla n ­
tic C ity, w a s t h a t of G eorge L a M o n te & Son, o f N u tle y , N ew J e rs e y . T he a t t r a c ­
tiv e L aM o n te e x h ib it is p ic tu re d above.

B O N D S
Public Utility
In dustrial
R a ilro a d

L a te s t p u b lis h e d f i n a n c i a l
statem ent a n d list o f depositary

M unicipal

banks w il l be m ailed upon request.
ADDRESS

'treasurer,
Commercial Investment
Trust Incorporated
1 Park A ve., New York, N. Y.
N orthw estern B anker N ovem ber 19h0

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

A.C.ALLYN andc o m

pan y

In corp orated
100 W est Monroe S treet, Chicago

N e w Y ork
R e p re se n ta tiv e s :

M ilw aukee
W a te rlo o

Om aha
Des Moines

Boston
Cedar R apids

31

N EBRA SKA
IN V E ST M E N T B A N K ER S
A S S O C IA T IO N

HOW ARD BUFFET
P re s id e n t
O m aha

CECIL W. SLOCUM

vice p resid en t
# of Sm ith, L and ery o u & Co.,
H
Om aha in v estm en t firm, w as elected
T. L A N D E R YOU,

w o rth y associate g ran d p a tro n of th e
g en eral g ran d chap ter, O rder of E a s t­
e rn Star, at th e trie n n ia l session in
San F rancisco recently.
The election placed Mr. L and ery o u
in th e second h ig h est office of the
order and m ay c a rry him to th e h ig h ­
est, if trad itio n al elevations are m ade.
H e is a p ast p a tro n of Ak-Sar-Ben
c h ap ter of th e E a ste rn E ta r in Om aha
an d p ast g ran d p a tro n of th e N ebraska
order.
E sta te of F ra n k J. B urkley, pioneer
Om ahan, w ho died recently, w as esti­
m ated a t m ore th a n $200,000 and w ill
go m ainly to tw o dau g h ters, Mrs.
L aw ren ce B rinker, w ife of th e Om aha
in v estm en t ban k er, and Mrs. J. M.
H arding, also of Omaha.
T his w ill also provide 11 bequests
of $1,000 each to various O m aha in sti­
tu tio n s, including C reighton u n iv e r­
sity, D uchesne college, St. Jam es Or­
phanage, F a th e r F la n a g a n ’s B oys’
H om e (B oystow n), St. Jo se p h ’s H os­
p ital and St. Cecilia’s C athedral.
R obert C. D ruesedow , Om aha in v e st­

m en t b roker, recen tly announced th a t
a group of O m ahans and others
p lan n ed to erect an oil refinery a t
F alls City, cen ter of th e new so u th ­
ea ste rn N eb rask a oil field, a t a cost of
$150,000 to $200,000.
P roposal for a $500,000 Om aha city
bond issue to finance cost of a pro­
g ram for expansion of th e m unicipal
a irp o rt at Om aha w as advocated by
th e Om aha C ham ber of Commerce
aerial tra n sp o rta tio n com m ittee, of
w hich E. J. S hoem aker is chairm an.
Shoem aker revealed th e proposal at
a special m eeting of th e Om aha Real
E sta te Board, w hich w e n t on record
as favoring th e a irp o rt p ro ject b u t op­
posed issuance of city bonds.
W aubonsie B ridge com pany stock­
holders of N ebraska City, Neb., re ­

Secretary

cently au thorized directors of th e com­
p any to liquidate th e firm ’s assets.
T he directors ordered d istrib u tio n of
$75 on each sh are of p referred stock
a fter liquidation.
The M issouri riv e r span a t N ebraska
City recen tly w as purchased from the
W aubonsie Com pany by th e city of
N ebraska City.
Mrs. Joseph Brinker, 84, m o th er of
L aw rence B rinker, Om aha in v estm en t
b anker, died recen tly at Lincoln, Neb.,
a fte r an illness of eight weeks.
A resid en t of Chicago m any years,
she had m ade h e r hom e in L incoln for
th e p ast five y ears w ith a daughter,
Mrs. R. L. Klein. Also surviving are
h e r husband, tw o grandchildren,
George B rin k er and Mrs. H elen Olson,
and a great-grandchild, all of Lincoln.
F u n e ra l services w ere held in L in ­
coln.

P ersonnel of th e Om aha citizens’
com m ittee on a irp o rt developm ent, to
direct th e cam paign for th e proposed
$500,000 bond issue for Omaha a irp o rt
expansion, included:
W. D ale Clark, p resid en t of the
O m aha N ational Bank; R obert H all,
executive officer of the N o rth Side
B ank of Omaha.
E state of H en ry G. W indheim , sr.,
Om aha seedm an, w ho died Oct. 2, 1939,
w as appraised at $57,334 in county
co urt a t Om aha recently. The estate
consisted solely of 2,650 shares of N e­
b ra sk a Seed com pany stock. His
w idow in h erits th e en tire estate.
E state of John H. Beaton, ow ner of
Omaha drug stores, w ho died recently,
w as estim ated a t about five th o u san d
dollars. L arg est asset w as 33% shares
of stock in th e B eaton D rug com pany,
listed as w o rth $3,300. O ther assets
included 333 shares of B eaton R ealty
com pany stock, listed as w o rth only
$1, and a H appy Hollow club bond
listed as having a value of only $1.

Included w ere seven tho u san d shares
of an oil com pany stock listed as of
no value and 250 shares of a m ining
stock also listed as w orthless.
H arold M. Sm ith of Omaha is tak in g
a y e a r’s leave from his position as
secretary -treasu rer of Buffet & Com­
pany, Omaha in v estm en t firm. A cap­
tain in th e chem ical w arfare service,
he w as one of th e first tw o N ebraska
reserve officers to rep o rt for m ilitary
service.
He w ill serve as a liasion officer for
th e w ar departm ent.

N eb rask a’s political subdivisions re ­
duced th e ir bonded indebtedness $1,869,593 in th e last tw o years, State
A uditor R ay Johnson announced re ­
cently.
T he to tal of county, m unicipal,
school district, precinct, tow nship, ir­
rigation and drainage debt as of last
Ju n e 30 w as listed a t $69,019,857 com­
pared w ith $70,889,550 th e previous
year.
The figures show ed $3,959,820 owed
by counties, $34,924,789 by m unicipali­
ties, $27,530,550 by school districts.
Bonds to taling $13,181,701 w ere is­
sued du rin g th e tw o-year period, an
increase of $1,573,113 in new bonds and
$3,729,029 in refu n d in g bonds over th e
preceding biennium .

L a m s o n
B r o s .

8c

Co.

E s t a b l i s h e d 1874

141 W. Jackson Blvd., Chicago
50 Broadway, New York
Our b ra n ch o ffic e s are
equipped to render com ­
p le te b ro k era g e serv ice
in th e handling of grain
(cash and futures),
stocks, bonds, cotton and
provisions. Private wires
direct to all m arkets.
B RA N C H O F F IC E S
N ew Y ork, N . Y .
B u ffa lo . N . Y .
C edar R a p id s, Io w a
D a v en p o rt, Io w a
Des M o in e s, Io w a
D u b u q u e , Io w a
F o r t D odge, Io w a
Iow a F a lls, Io w a
M a rsh a llto w n , Iow a
M ason C ity , Io w a
S io u x C ity , Io w a
S to r m L a k e , Io w a
W a te rlo o , Io w a
F ra n k fo rt, In d .
L a F a y e tte , In d .

M in n e a p o lis, M inn.
S t. P aul, M in n .
K a n sa s C ity , M o.
S t. L o u is , M o.
O m aha, N eb .
L in c o ln , N eb .
B lo o m in g to n , 111.
D e K a lb , 111.
G ilm an, 111.
G alesburg, 111.
L a S a lle , 111.
P eoria, 111.
Q u in c y, 111.
M u sk o g ee , O kla.

M E M B E R S O F L E A D IN G S E C U R IT Y
a n d C O M M O D IT Y EX C H A N G E S

N orthw estern Banker N ovem ber 19'i0

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

32

M O N T A N A NEWS
E T H E L W. W ALKER
S e c re ta ry -T rea su re r
H elena

R. D. M O U N TA IN
P re s id e n t
C onrad

cial d istrict, and Mr. B randj ord, fo r­
m erly state land com m issioner, is now
E.
O. Jen k in s, p resid en t of th e F irs t
state ad m in istrato r of public w elfare.
N ational B ank, G reat Falls, and o th er
On M arch 9, 1911, A. J. B row er and
officers of th e in stitu tio n w ere hosts
W. S. H ollingsw orth bought th e in ­
recen tly to five executive officers of
stitu tio n and operated it u n til October
the F irs t B ank Stock C orporation and
8, 1928, w hen th ey sold to the presen t
its T w in Cities affiliates. The F irs t
stockholders. P re se n t officers are: L.
N ational bank is one of th e M ontana
E. B unge of Missoula; H. E. Olason, of
affiliates.
Ronan, vice presid en t and cashier; H.
In th e p a rty w ere A. H. K ennedy,
R. R esner, a ssistan t cashier; directors
vice p resid en t and d irecto r of F irs t
are Mr. Bunge, A. M. Sterling, Mr.
B ank Stock Corporation; A. H. Quay
Olson, JB. O. S hennum and B. G. Paige.
and Guy W. LaLone, vice presid en ts
of F irs t N ational B ank & T ru st Com­
pany, M inneapolis; Ju lia n B. Baird,
Officers Are Hosts
vice p resid en t of th e F irs t N ational
F ive executive officers of th e F irst
Bank, St. Paul, and P hilip L. Ray, p re s­ N ational B ank Stock C orporation and
iden t of th e F irs t T ru st Company, St. its T w in City affiliates w ere guests in
Paul. B aird and R ay are directo rs of H elena at a d in n er given by officers
F irs t B ank Stock C orporation, and
and directors of th e F irs t N ational
m em bers of th e executive com m ittee. B ank and T ru st Company.
The v isitin g b an k ers w ere m aking
Officers of th e H elena b ank w ho
a b rief to u r of M ontana w h ich took w ere p resen t w ere P resid en t T. O.
them to all 12 of th e im p o rta n t points
H am m ond; F red H einecke, vice presi­
in th e state w h ere b an k s affiliated w ith
dent; L. S. Hazard, cashier; Leon H.
F irs t B ank Stock C orporation a re lo­ W est,
a ssistan t
cashier;
W alter
cated. Included in th e itin e ra ry w as
B rutsch, secretary, and George E.
H avre, F o rt Benton, L ew istow n, G reat Stadler, a ssista n t cashier.
Falls, H elena, M issoula, Bozeman,
L ivingston, B utte, Billings, F o rsy th
and Miles City.

IN ST A LLM EN T PAPER

G round has been b ro k en an d th e
erection of a new building for th e
R onan S tate bank, w hich w ill be lo­
cated on th e n o rth e a st co rn er of th e
public square, is u n d e r way.
T he b uilding w ill be 32 by 58 feet
and w ill be co n stru cted of cem ent.
M odern in ev ery respect, it w ill have
the latest ty p e of h eatin g an d lig h t­
ing facilities an d w ill be a ir condi­
tioned.
M ore co n venient q u a rte rs are to be
fu rn ish ed w ith new low ty p e coun­
ters.
T he R onan S tate B ank w as org an ­
ized J a n u a ry 6, 1910, b y Olof Romos,
A lbert Besancon, G. E. B roughton, an d
Iv er B. B randjord. Mr. B esancon is
now d istric t judge of th e fo u rth judiN orthw estern B anker N ovem ber 1940

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

A ccording to the repo rt, th e sales in ­
d u stry em ploys 27,547 persons w ith an
an n u al payroll of $51,230,000.

H E L P IN G TO
M AKE M O RE M O N EY

A t G reat Falls

Under Construction

volved, indicating th at, in addition to
th e retail in stallm en t paper held by
sales finance com panies, approxim ate­
ly $1,000,000,000 of personal loan in ­
debtedness is held by personal finance
com panies, in d u strial banks, coopera­
tive credit unions and the sm all loan
d ep artm en ts of com m ercial banks.

(C ontinued from page 11)
p er by banks exceeded th a t held by
sales finance com panies. Los Angeles,
South Bend, N ew ark, and Spokane
b anks held m ore th a n half as m uch
p ap er as w as held by sales finance com­
panies. In 29 cities, Chicago, M ilw au­
kee, A tlanta, Jacksonville, Flordia,
B irm ingham , New Orleans, M emphis,
D enver, Albany, C harlotte, Dayton, E l
Paso, L ittle Rock, Miami, Oklahoma
City, Omaha, Peoria, Providence, P ueb­
lo, Reading, P ennsylvania; Salt Lake
City, San A ntonio, Syracuse, Tam pa,
Toledo, W aterb u ry , Connecticut; W ich­
ita, W orcester, and Y oungstow n, banks
held 10 p er cent and less in com pari­
son w ith th e holdings of finance com­
panies.
T he re p o rt contains estim ates, ac­
cepted as reliable by th e in d u stries in ­

(C ontinued from page 18)
up th ro u g h th e ran k s from an iron
w orker to an in d u strial leader. He
had been a sm all tow n b an k er and had
a ttracted th e a tten tio n of one of the
larger m id-w estern banks. This in sti­
tu tio n prevailed upon him to take
charge of a m an u factu rin g business in
Indiana. He carried it th ro u g h its
financial troubles and established it
upon a profitable basis of operation.
He did th e sam e for a large autom obile
corporation, and th is b rought him the
offer of th e M inneapolis com pany's
presidency.
Mr. M acFarlane assum ed his new
duties at a tim e w hen th e in fan t pow er
farm ing business w as try in g to find
itself.
Mr. M acF arlane’s rig h t hand m an
is George L. Gillette, vice p resident in
charge of sales. He is a living dem ­
o n stratio n of th e effectiveness of sell­
ing by su b stan tial energetic leader­
ship. T he d istrib u tio n set-up of the
M inneapolis-M oline P ow er Im plem ent
Com pany is stro n g er today th a n it ever
has been before in its 75 year exist­
ence.
T hus th e M inneapolis-M oline Pow er
Im plem ent Com pany is helping b an k ­
ers, farm ers and dealers to m ake
m oney and also helps to increase our
national income.

Regional Conferences
T hree regional conferences are to be
held by th e A m erican B ankers Asso­
ciation d u rin g 1940-41.
T he first conference w ill be held at
F o rt W orth, Texas, Decem ber 5-6. The
Texas H otel in F o rt W o rth w ill be
conference head q u arters.
T he second conference w ill be held
in N ew Y ork City, a t th e W aldorfA storia H otel, M arch 5-6-7, 1941.
The th ird conference w ill be in
Louisville, K entucky, M arch 20-21. The
B row n H otel, Louisville, w ill be head­
q u arters for th is m eeting.

<

33

NORTH
M A R T IN AAS
P re s id e n t
New R ockford

DAKOTA
NEWS

Captial Increased
R equest of th e K indred S tate B ank
for p erm ission to increase its capital
stock from $20,000 to $25,000 w as ap ­
proved by th e state b an k in g board of
N o rth Dakota.

Dies in Leeds
E m b e rt Page, 74 y ears old, w ho
serv ed in th e N o rth D akota senate
d u rin g th e 1923 and 1925 sessions, died
recently. H e w as p ro m in en t in fa rm ­
ing, b an k in g and g rain b u siness cir­
cles in B enson county.

C. C. W ATTAM
S e c re ta ry
P argo

The board approved th e extension
of th e corporate existence of th e bank
of M into, W alsh county.

Pioneer Dies
F u n eral services for Jo h n H. Shaw,
66, pioneer ran ch er and b an k er and
W illiston resid en t w ere held recently.
His b anking business w as in term in ­
gled w ith his ran ch in g sta rtin g in 1913
and he w as in terested in banking at
A lexander, S tanley and in W illiston.
Also in terested in a livestock agency,
th e W illiston ru ra l credit com pany,
he h ad been active in it-since its sta rt
and at one tim e headed the group.

Opens at Sharon
S tate E x a m in er Jo h n G raham said
the F irs t S tate B ank of Sharon, w ith
a capital stock of $25,000 and surp lu s
of $5,000, h ad been g ra n te d its c h a rte r
and w as open for business. G raham
said th e new b an k w as a conversion
of th e F irs t N ational B ank of S haron
and th a t th e sam e stockholders and
officer perso n n el w ere in charge of
th e new bank.

Heads Northwest Group
H. M. N ash of H atto n w as elected
p resid en t of th e n o rth e a st group of
the N o rth D akota B an k ers association
a t th e ir a n n u a l fall m eeting held in
Devils Lake.
O ther officers nam ed are E. L. Cal­
lahan, M unich, vice p resident; C. I.
E restad , M addock, secretary -treasu rer,
and A. W. Omdahl, Devils Lake, m em ­
ber of th e executive council.

Conversion Approved
T he N o rth D akota B anking board
approved th e p re lim in a ry organization
pap ers w hich w ould co n v ert th e F irs t
N ational B ank of H illsboro to th e
N o rth w e ste rn S tate B ank of H illsboro.
Jo h n G raham , sta te b a n k exam iner
and a m em ber of th e board, said th e
sole reason for th e conversion w as to
change from a n atio n al to a state b ank
and th a t th e sam e officers an d pessonnel w ould be in charge of th e new
bank. F in al conversion is n o t ex­
pected u n til aro u n d th e first of th e
year.

given to the Association. The grow th
of th e A ssociation and th e confidence
of m em bers in its usefulness can be
a ttrib u te d in large m easure to the high
stan d ard s w hich have guided him in
th e conduct of th e affairs of the Cen­
tra l Office. Long has he dem onstrated
th a t he regards his position as a tru s t
—th a t all his energy and ability should
be devoted to th e m any-sided in terests
of the organization. Courteous and en­
gaging in m anner, firm in decision,
gifted in counsel and w ise in experi­
ence, his efforts have been continuous­
ly helpful to the m en and w om en com­
p rising this organization. He has been
constantly m indful of his d u ty in m at­
ters of public w elfare; he has given a
full m easure of cooperation to b ring
about a b e tte r concept of A m erican
finance; and he has served his own
com m unity well, th ro u g h civic and
fra te rn a l bodies. Because of his sound
judgm ent, tact and patience, because
of th e tim e he gives w ith o u t stint, and
for his faithfulness to th is Association,
th e Board of D irectors unanim ously
approves th is resolution w ith full
know ledge th a t it p resents the th o u g h t
of every m em ber.”

L E G A L DEPARTM ENT
H IG H L IG H T S
AT H O T SP R IN G S
(C ontinued from page 15)
not Be W rong,” by C. E. B rock w ay of
th e F irs t N ational B ank of Saron,
P ennsylvania.
One of the new m ajor topics for de­
p a rtm en tal discussion at th e F.A.A.
convention w as th a t C onsum er Credit.
T he en tire exhibit of consum er credit
ad vertising, w hich w as show n a t th e
B ankers A ssociation of C onsum er
C redit Conference in W hite S ulphur
Springs early th is y ear w as also dis­
played a t H ot Springs.
The F inancial A dvertisers Associa­
tion celebrated th is y ear its tw entyfifth silver ann iv ersary . D uring 16 of
those y ears P reston E. R eed, its p res­
en t executive vice president, has been
in active charge of th e organization
and th e cen tral office.
A t th e an n u al board m eeting held at
H ot Springs on Sunday, P resto n Reed
w as presen ted by th e board w ith a
reso lution expressing appreciation for
th e fine w ork w hich he has done and
for th e service he has ren d ered the
association.
The resolution is as follows:
“A R esolution
“The B oard of D irectors of th e F i­
nancial A dvertisers A ssociation de­
sires to express its appreciation to
P reston E. Reed

“E xecutive vice president, for the
sixteen y ears of loyal service he has

(C ontinued from page 20)
vrests in the purchaser irrespective of
w h eth er the County Court thereafter
approves the adm inistrator’s annual
account in w hich he m akes an accoun t­
in g for the m onies received on the sale.

A K entucky banker and one of the
custom ers of his b an k becam e in ­
volved in a dispute in w hich th e b an k ­
er stabbed and killed th e custom er.
The custom er used in su ltin g language
against th e banker, b u t n o thing m ore,
and actually bro u g h t on the difficulty
w hich resu lted in his death. Should
the b an k er in such circum stances be
exonerated?
No. A person w ho stabs and k ills
an oth er is not justified in doing so be­
cause in su ltin g language is used
again st him . Such language is no ju s­
tification for an assault. The banker
had the rig h t to u se only such force as
appeared to him reasonably n ecessary
to repel the activ ities of the deceased.
O bviously the stabbing and k illin g
w ere n ot required to do th is and the
banker therefore should not be ex o n ­
erated.
B oyce, an O klahom a banker, bought
certain m achinery for his farm in th a t
state. The co n tract of sale provided
th a t th e m achinery w as sold w ith w a r­
ra n ty to rep air and fu rth e r provided
th a t such w a rra n ty w as th e only w a r­
ran ty , eith er express, im plied or stat-

Northwestern Banker

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Federal Reserve Bank of St. Louis

Novem ber Í940

34
utory, upon w hich th e m achinery w as
sold. I t developed th a t th e m achinery
w as n ot fit for th e purpose for w hich it
w as to be used and th e b an k er sued
for dam age claim ing th ere had been a
breach of th e im plied w a rra n ty of fit­
ness. Could he recover?

1 HIS institution, one of the
few very large banks that oper­
ates solely in the commercial
field, by tradition, policy, and
practice is peculiarly a “bank­
ers’ bank’’.
Thus by intent and purpose our
entire organization consists of
specialists of long experience in
caring for the diversified needs
of an ever widening circle of
correspondent banks.

No. W here a contract of sale of farm
m achinery sta tes th at the m achinery
is sold w ith w arranty of repair and no
other, and th a t th e w arranty to repair
is the on ly w arranty, eith er express,
im plied or statu tory, upon w hich the
m ach inery is sold, the rule of im plied
w arranty of fitn ess does not apply
sin ce the p arties to the sales contract
contracted again st im plied w arranties
such as th e one on w hich the banker
sou ght dam ages.
U nder M issouri statu te th e cashier
of a b an k does not have pow er to en­
dorse notes received by the b ank for
m oney loaned unless th e board of di­
rectors, by w ritte n resolution, specifi­
cally authorizes him to do so. W here
a M issouri b an k sells a note for the
full am o u n t th ereo f in th e ordinary
course of business is such a resolution
necessary to validate th e title of the
purchaser?
No. The statu te in question does not
extend to the m ere sale of a note for
the fu ll am ount th ereof in the ordinary
course of b u sin ess and the cashier m ay
pass valid title to the p urchaser w ith ­
out the approval of the directors of the
specific transaction.

N E W S A N D V IE W S
(C ontinued from page 23)

. . . THE . . .

P h il a d e l p h ia
NATIONAL

BANK

O R G A N IZ E D 1803

PHILADELPHIA, PA.
Capital, Surplus and Undivided Profits
$ 4 3 ,0 0 0 ,0 0 0
M em ber of F ederal D eposit Insurance C orporation

M assachusetts w as th e guest speaker
a t a luncheon in Springfield, M assa­
chu setts w here we w ere p resen t and it
w as in terestin g to h e a r him say th a t
u n d er his A d m inistration th e bonded
indebtedness of M assachusetts has
been reduced from 42 m illion dollars
to 19 m illion dollars in th e course of
tw o years. W e m et th e G overnor aft­
er th e luncheon and told him we w ere
glad th e re w as one official in the
U nited States w ho seem ed to be in te r­
ested in balancing th e budget.
W e h eard about a dejected W all
Street m an w ho sat in C entral P ark
brooding on his situation. A friend
came along and said “I saw you h av ­
ing lunch w ith a b eautiful blonde in
a sidew alk cafe th is noon.” “T hat
w asn't a b eautiful blonde; th a t was
m y wife. And th a t w asn ’t any side­
w alk cafe: th a t w as m y fu rn itu re .”
W e noticed th e follow ing sign w hile
(T u rn to page 43, Please)

Northwestern Banker Novem ber 19W

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

W . C . M A C FARLANE

G E O R G E STEPHENS

P r e s id e n t a n d G e n e r a l M a n a g e r

O n e o l M o lin e ’s E a r lie s t L e a d e rs

In this modern era of swiftly moving events — of
sudden changes and vigorous competition, only
those things which possess inherent merit and which
qualify as CONSTRUCTIVE can hope to endure.
Testimony to this obvious truth is the progressive
service which for 75 years MINNEAPOLIS-MOLINE
has given to the farmers of the world and to the
general development of agriculture. . . . In the men
who guide the destinies of this Company and in the
engineers who design Minneapolis-Moline modern
machinery, agriculture and industry have both found
friend, helper and constant harbinger of the NEW.
To improve methods of farm operation and to
synchronize the machinery needs of the farmer with
the demands of modern markets — these major pur­
poses have animated the history of MinneapolisMoline.
Glimpsing ahead from this, our 75th Anniversary
Year, the future looms with potential means of still
further lessening manual effort for the farmer, of
reducing his production costs, and of injecting
greater comfort into ALL machines necessary to his
business. . . . To the successful unfoldment of these
means Minneapolis-Moline dedicates itself.

Minneapolis-Moline Power Implement Company,


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Federal Reserve Bank of St. Louis

T h e s ig n s o f P r o g r e s s a r e a ll a b o u t u s. N o p e r i o d in h is to r y h a s s e e n s o m u c h
p r o g r e s s in a lm o s t e v e r y f ie ld a s h a s t h e 7 5 y e a r s j u s t p a s t.
T o h a v e p r o g r e s s , w e m u s t h a v e p i o n e e r s . A n d M in n e a p o lis - M o lin e is a
p i o n e e r in t h e t r a c t o r b u i l d i n g in d u s t r y . T h e M o lin e U N IV E R S A L w ith b e t t e r
v is io n fo r a ll jo b s — w ith s e lf - s ta r te r , e l e c t r i c lig h ts , v a r i a b l e s p e e d g o v e r n o r
a n d m a n y o t h e r f e a t u r e s s till c o n s i d e r e d m o d e r n w a s t h e f irs t g e n e r a l p u r p o s e
t r a c t o r — i n t r o d u c e d in 1 9 1 5 . T h e s e U N IV E R S A L S a n d T w in C ity t r a c t o r s w e r e
t h e tw o f irs t r e a lly e n g i n e e r e d l i n e s of t r a c t o r s to a p p e a r o n t h e m a r k e t a n d w e r e
t h e f o r e r u n n e r s of t h e m o d e r n M M lin e of tr a c t o r s . T w in C ity e n g i n e s ( C o r lis s
s te a m ) a n d tr a c t o r s ( i n te r n a l c o m b u s tio n ) m a d e t h e i r a p p e a r a n c e o n t h e m a r k e t
in 1 8 9 0 a n d 1 9 1 0 r e s p e c ti v e l y . A b o u t t h e f irs t " m o d e r n d e s i g n e d " T w in C ity
t r a c t o r , i n t r o d u c e d in 1 9 1 9 , t h e F a r m I m p le m e n t N e w s , a l e a d i n g N a tio n a l F a r m
M a c h i n e r y T r a d e P a p e r , i n its J u ly 6 , 1 9 3 3 , i s s u e s a id th is : " T h e 1 7 - 2 8 t r a c t o r
— g o in g a b o u t a s s tr o n g to d a y a s it d i d i n 1 9 1 9 — t h e m o d e l th a t p r o v e d th a t
t r a c t o r life c a n b e m e a s u r e d in d e c a d e s r a t h e r t h a n y e a r s . " M M T w in C ity t r a c t o r s h a v e b e e n b u ilt a l o n g t h e g e n e r a l d e s i g n n o w a d o p t e d a s s t a n d a r d fo r
t h r e e y e a r s l o n g e r t h a n a n y t r a c t o r of m o d e r n d e s i g n s till b u ilt.
W ith t h e b e n e f i t of a lo n g a n d s u c c e s s f u l t r a c t o r d e s i g n i n g e x p e r i e n c e , .M M
c o n t i n u e s to p i o n e e r im p r o v e m e n ts i n tr a c t o r s . In 1 9 3 0 M M i n t r o d u c e d t h e
o r ig in a l q u i c k a t t a c h a b l e a n d q u i c k d e t a c h a b l e t r a c t o r i m p le m e n ts e m p lo y ­
in g t h e S q u a re T o o l B a r h itc h , m a k in g a v a i l a b l e to a ll u s e r s of M M U n iv e r s a l
t r a c to r s a c o m p le te lin e of " Q u i c k - o n — Q u ic k - o f f " i m p le m e n t a t t a c h m e n t s fo r
g r e a t e r t r a c t o r u tility a n d e c o n o m y . M in n e a p o lis - M o lin e w a s t h e f irs t to i n t r o ­
d u c e t r a c t o r s w ith h i g h c o m p r e s s io n e n g i n e h e a d for b u r n i n g r e g u l a r g a s o lin e
(1 9 3 4 ) a n d f irs t to i n t r o d u c e a n a l l - p u r p o s e t r a c t o r w ith fiv e f o r w a r d s p e e d s
( 1 9 3 4 ) . T h e f irs t t r a c t o r to e m b o d y t h e n e w f e a t u r e of V is io n lin e d d e s i g n w a s
t h e M M U n iv e r s a l " Z " . T h is e x c lu s iv e M M f e a t u r e in t r a c t o r d e s i g n p r o v id e s
th e b e s t o p e r a t i n g v is io n w ith s a fe ty a n d n o w l e n d s its tr im m o d e r n a ttr a c t i v e
lin e s to a ll M M tr a c to r s . A n u n i q u e n e w e n g i n e d e s i g n w ith f a r f e w e r p a r t s w a s
i n t r o d u c e d b y M IN N E A P O L IS -M O L IN E o n t h e " Z " a n d " R " tr a c t o r s . M M
t r a c to r s in s iz e s a n d ty p e s to m e e t a ll n e e d s .
I n 1 9 3 8 M in n e a p o lis - M o lin e
a n s w e r e d t h e d e m a n d s of J jll&
f a r m e r s e v e r y w h e r e f o r JS S aft
g r e a t e r c o m f o rt in tr a c t o r s
w ith th e C O M F O R T R A C TO R, re g u la rly e q u ip p e d
w ith a ll s e a s o n c o m f o rt- c a b k V« ,
a n d s u c h a d d itio n a l c o m fo rt 3 r J r : }
f e a tu r e s s u c h a s fa n , r a d io ,
h e a t e r , s t a r t e r a n d lig h ts , i | | l f
c i g a r li g h t e r , a s h tr a y , s u n
v is o r, w in d s h ie ld w ip e r , e tc . I n 1 9 3 9
M M i n t r o d u c e d t h e f irs t g e n e r a l p u r ­
p o s e tr a c to r s , a v a ila b le w ith o r w ith ­
o u t a ll s e a s o n c o m f o rt- c a b i n its " R "
tr a c t o r m o d e ls .

FIRST TO
VISIONUNE
TRACTORS

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Federal Reserve Bank of St. Louis

F a rm e rs th ro u g h o u t
th e l e n g t h a n d
b r e a d t h of th is w o r ld
f f p r e l h a v e c o m e to lo o k to
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ments. They have
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th e y d e m a n d M M q u a l i ty th e y
g e t t r a c t o r s of g r e a t e r d e p e n d a ­
b ility , lo w e r f u e l a n d u p k e e p
c o s ts , a n d l o n g e r t r a c t o r life . G e t
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In 1 9 3 4 M in n e a p o lis - M o lin e i n t r o d u c e d t h e H A R V E S T O R , th e
firs t l ig h t w e ig h t, h i g h c a p a c it y c o m b in e fo r h a r v e s t i n g a ll c r o p s .

H arvester ( 1 2 ft.) and the MM U niversal ” Z " tractor
harvesting a heavy stand of grain.

T h e o r ig in a l H A R V E S T O R w a s a 1 2 ft. m a c h i n e , w e i g h i n g
n e a r l y a to n le s s t h a n p r e v i o u s c o m b in e s of its siz e . Its sin g le
u n it, a ll s te e l c o n s tr u c tio n a n d m a n y n e w f e a t u r e s f irs t b r o u g h t
a b o u t h i g h c a p a c it y g r a i n h a n d l i n g a b ility w ith lig h t w e ig h t a n d
l ig h t d r a f t. E a rly H A R V E S T O R u s e r s f o u n d th a t t h e y c o u l d s a v e
c r o p s w h e r e th e o l d e r c o m b in e s o r o t h e r h a r v e s t i n g m e th o d s
fa ile d . R e p o rts of s a v in g s of 1 0 to 1 2 c e n ts p e r b u s h e l a n d $ 2 .0 0
a n d m o r e p e r a c r e w ith 1 5 t h e m a n h o u r s w e r e g e n e r a l fo r
w h e a t a n d c o r r e s p o n d i n g l y b ig fo r o t h e r c r o p s . H A R V E S T O R
s a le s i n c r e a s e d b y l e a p s a n d b o u n d s y e a r a f te r y e a r , a n d e v e r y
y e a r M M H A R V E S T O R S h a v e e s t a b l is h e d n e w r e c o r d s fo r e c o n ­
o m y a n d s a v in g a ll t h e c r o p s . S i n c e 1 9 3 4 t h e H A R V E S T O R 12
f t. h a s b e e n t h e b ig g e s t s e lle r in i t s s iz e .

Harvestor ” 6 9 " with p ic k -jp attachment and MM
” R " tractor harvesting flax from windrow.

T h e g r e a t s u c c e s s of t h e o r ig in a l 1 2 ft. H A R V E S T O R a n d d e ­
m a n d fo r s m a lle r m a c h i n e s e m b o d y in g its lig h t w e ig h t, h ig h
c a p a c it y f e a t u r e s le d M in n e a p o lis - M o lin e in 1 9 3 7 to in t r o d u c e
t h e H A R V E S T O R in 6 a n d 8 ft. siz e s, a n d t h e H A R V E S T O R ''6 9 ' '
in 1 9 3 9 . 6 a n d 8 ft. H A R V E S T O R S a r e e x a c tly t h e s a m e in d e s i g n
a s th e 1 2 ft. H A R V E S T O R . T h e n e w H A R V E S T O R " 6 9 " a d o p ts
m a n y of t h e f e a t u r e s of t h e l a r g e r H A R V E S T O R S , a n d e m b o d ie s
m a n y n e w f e a t u r e s fo r s m a ll c o m b in e s . Its u n u s u a l fle x ib ility a n d
m a n y o u ts t a n d i n g f e a t u r e s in c u ttin g , t h r e s h i n g , s e p a r a t i n g a n d
c l e a n i n g m e c h a n is m a d a p t it to m o r e s u c c e s s f u l h a r v e s t i n g of a ll
g r a i n a n d s e e d c r o p s u n d e r a ll c o m b in in g c o n d itio n s . Its p e r ­
f o r m a n c e o n e a r l y te s ts i n d i c a t e th a t it, to o , w ill e s t a b l is h n e w
r e c o r d s f o r b ig c a p a c it y , e c o n o m ic a l h a r v e s t i n g a n d g r a i n s a v in g .
Harvestor W indrow er ar.d the MM Standard ” Z'
tractor w indrow ing a grass crop for curing.

F a r m e r s in e v e r y s e c tio n of t h e c o u n tr y , a n d o n e v e r y siz e a n d
ty p e of f a rm c a n n o w r e m o v e t h e d r u d g e r y fro m h a r v e s t i n g a n d
a s s u r e th e m s e lv e s of g r e a t s a v in g s in h a r v e s t i n g a ll c r o p s w ith a n
M M H A R V E S T O R of t h e r i g h t siz e . T h e s e llo u t r e c o r d of M M
H A R V E S T O R S p r o v e s th a t t h e y 'r e t h e W o r l d 's m o s t p o p u l a r c o m ­
b in e s .
A ls o g e t f a c ts o n M M a ll- s te e l t h r e s h e r s — t h e m o d e r n v e r s io n
of t h e w o r ld f a m o u s M in n e a p o lis T h r e s h e r s a n d t h e W o r l d 's f irs t
a ll- s te e l T w in C ity T h r e s h e r s .

H arvestor ( 1 2 ft.) with pick-up attachment and the
MM Standard ” U " tractor harvesting grain from
windrow.

Harvestor (6 ft.) with pow er take-off d rive and MM
U niversal " Z " tractor harvesting standing grain.

Harvestor ” 6 9 " and MM ” R " tractor harvesting a
h eavy stand of wheat.

■■'HAilV Esrg fr

Harvestor (8 ft.) with en gin e d rive and MM ” R'
tractor harvesting wheat with rea l econom y.

Harvestor ( 1 2 ft.) equipped with sp ecial South
A m erican g rain gra d in g reclean er and MM Com 1
fortractor harvesting wheat

YEARS j P
B E T T E R IN G X

FARMING METHODS

o f lAc

AMERICANFARMER

k PIONEERS i PROGRESS

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

M

l N N E A F O

TRACTORS t >
F ield c u ltiv a to rs

T ra cto r a tta c h e d b e d d e rs

8 row lister w ith d am m ers

S u b -S o ilers

4 ro w c h e c k p la n te rs

2 ro w c h e c k p la n te rs

6 row b e e t o r b e a n d rill p la n te r

2 row d rill p la n te rs

U n i-C a rrie r w ith 4 bottom U ni-Plow

These past 7 5 years have seen a lot of pr
chinery. Today's products of M inneapolis-!
en c e gained during the years from 1 8 5 5 td
have set the pace for agricultural progrès:
agriculture have grown up together — bo
apolis-M oline's pioneering in grain drills,
planters, listers and more recently in the Ui
machinery could not have brought su ccess
willing to pioneer in adopting and using Ihi
that they w ere improvements over older m
Today, thanks to the encouragem ent of
presents the finest farming methods in its
in its modern quality tractor attached tools,
MM Universal tractor, in its modern drill
p l a n t e r s w hich are still the "World's ChJ
which s e t new standards of QUALITY! t J
lo a d in g . The MM line is a complete modern
m o n e y a n d live better.
]

U n i-C a rrie r w ith fie ld cultivator

MM sp rin g tooth harro w s — all sizes

U n i-C a rrie r w ith U ni-Rod W e e d e r

MM
Lowest Eisiltl
M oline " W o rld 's
C h a m p io n " C o rn
P la n te rs Jttik

M oline-M onitor pres:
fertilizer attach m en t.


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Federal Reserve Bank of St. Louis

Fam ous M oline-

» S ' M

O L I N E

51 m a c h i n e r y

_
2 ro w liste r p lo w

d rill p la n te rs for cu ltiv a to r fram e

press in agriculture and in agricultural ma­
pline are the developm ents of all the experiIS’-rO. Truly, products of M inneapolis-Moline
Through the years Minneapolis-Moline and
have found that P io n e e r in g P a y s . MinneItraddle row cultivators, three w heel plows,
[•Tiller, tractor attached tools, and harvesting
without an agriculture w hich was ready and
pe m achines, and by using them discovering
hods.

2-4 ro w D u ch ess sw e ep ty p e p la n te rs

U n i-C a rrie r w ith 4 row U ni-Lister
a n d d am m ers

2 row cu ltiv a to r

2-4 row cu ltiv a to rs for UNIVERSAL tra cto rs

U n i-C a rrie r w ith L ister p la n te r

progressive agriculture, M inneapolis-Moline
ni-Tiller, the All-in-One farm m achine, and
f w hich a com plete lin e is available for each

MM d isc h a rro w a n d p e g to o th h a rro w
for all n ee d s.

Two w ay plow for d ire c t atta c h m e n t
to "R " tra c to r.

MM H i-K leara n ce m o ld b o ard plow a

ip re e d e r
- E asiest P u llin g
MM H am m erm ill
fe e d g r in d e r

W h e a tla n d D isc Plow w ith
M oline-M onitor s e e d in g a ttach m en t.


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Federal Reserve Bank of St. Louis

ft

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*v«*r ■ /fei < ;i*
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l

1MQDERN

[MODERN FARM MACHINERY:

farm m a chinery ]

,J&S?

JP II
—
More Husking Rolls — longer Picking Rolls. Designed to
meet the toughest husking conditions.

MM C ylind er Shelters are leadin g sellers. T h reetizes
— one standard oi quality. From 20 0 to 14 0 0 bushels
per hour.

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T h e n e e d s of a p r o g r e s s i v e a g r i c u l t u r e a r e e v e r c h a n g i n g .
A n d t h e h is to r y of M in n e a p o lis - M o lin e is a s to r y of a n t i c i ­
p a t i n g m o d e r n f a r m e r s ' n e e d s , a n d d e v is in g m a c h in e s to
m e e t th o s e n e e d s . S o it w a s th a t M in n e a p o lis - M o lin e d e ­
s ig n e d t h e H U S K O R to m e e t : h e to u g h h u s k in g c o n d itio n s
in c o n n e c t i o n w ith t h e r a i s i n g of h y b r i d c o r n . S u c h f e a tu r e s
a s a d ju s ta b le f lo a tin g s n o u ts , six g a t h e r i n g c h a i n s in s t e a d
of t h e u s u a l fo u r, lo n g e r s n a p p i n g r o lls , w id e r h u s k i n g b e d ,
a n d m o r e h u s k in g r o lls a s s u r e f a s te r , c l e a n e r h u s k in g u n ­
d e r t h e t o u g h e s t h u s k i n g c o n d itio n s .
M in n e a p o lis - M o lin e d e s i g n e d a n d m a r k e t e d , t h e firs t
r e a lly s u c c e s s f u l c y l i n d e r c o r n s h e lle r s . C u s to m s h e l le r s
h a v e f o u n d th a t th e y c a n m a k e g r e a t e r p r o fits w ith a n M M
S h e lte r , b e c a u s e of t h e i r b i g c a p a c it y a n d g o o d w o r k u n d e r
a ll s h e llin g c o n d itio n s . M M S h e lle r s a r e m o s t p o p u l a r w ith
f a r m e r s , to o — th o u s a n d s d e m a n d M M S h e lle r s to d o t h e i r
s h e llin g b e c a u s e th e y s h e ll c l e a n e r a n d a r e s a f e r a n d
c l e a n e r to w o rk a r o u n d . M M ’s n e w M o d e l D s h e l te r n o w
e n a b l e s m a n y m o r e f a r m e r s to o w n t h e i r o w n u n it, a n d p r o ­
v id e s p r o f ita b le c u s to m s h e llin g fo r th o s e w h o r e q u i r e
s m a lle r u n its t h a n M M 's tw o l a r g e r m o d e ls .
T h e l e a d e r s h i p of M in n e a p o lis - M o lin e in p lo w d e s i g n a n d
q u a lity is w e ll e s t a b l is h e d . T h e f irs t t h r e e w h e e l e d p lo w
w a s t h e M o lin e F ly in g D u tc h m a n , i n t r o d u c e d in 1 8 8 4 . T h e
o r i g in a l s u c c e s s f u l o n e w a y d is c p lo w s a n d t h e W o r l d 's
l e a d i n g s e l le r s a r e t h e M M W h e a t l a n d d is c p lo w s . M M tw ow a y p lo w s fo r la y in g a ll f u r r o w s o n e w a y a n d e lim in a tin g
d e a d f u rr o w s , d e s i g n e d fo r p lo w in g i r r i g a t e d a n d h illy la n d ,
a r e t h e m o s t p o p u l a r b e c a u s e of m a n y p a t e n t e d a n d e x ­
c l u s iv e f e a tu r e s . M in n e a p o lis - M o lin e 's l e a d e r s h i p is s h o w n
a g a i n i n its m o d e r n H i- K le a r a n c e p lo w s — p lo w s w h ic h p r e ­
s e n t e x c e p t i o n a l lift a n d c l e a r a n c e f e a t u r e s to m e e t m o d e r n
p lo w in g c o n d itio n s a n d s o lv e m o d e r n t r a s h p r o b le m s .
M M H u s k o rs , M M C y l i n d e r S h e lle r s a n d M M p lo w s a r e
t h r e e b ig r e a s o n s w h y f a r m e r s h a v e c o m e to lo o k to M in n e a p o lis - M o lin e , t h e P io n e e r s cJ P r o g r e s s , fo r h e l p i n s o lv in g
m o d e r n f a r m in g p r o b le m s .

Mounted or unmounted models. Most popular with
custom shelters and farm ers alike becau se of big
capacity, clean shelling.

MM d isc plows cut costs in extra tough plowing conditions.

SW

X

'

MM two w ay plows are the favorites
for hilly and irrigated lands.

ftP t

H I-KXEAFANCE
A .N E W STANDARD IN PLO W D ESIG N AND Q UALITY

The original successful MM W heatland Disc Plows are
the Most Popular. Better scouring — lighter draft.

JlS B

’
*

m
MODEL D shelter for the farm er who wants to own his
town uni: and do custom work on a sm aller scale


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Federal Reserve Bank of St. Louis

Better scouring — extra fo g i/lifo C learan ce designed to meet
modern plowing conditions. 2-3-4- and 5-bottom sizes.

*!

m

.

MM disc plows are ideal for hard soils — sizes
and type for every need. G et complete facts.

Moli ne-Mor.itor Be ■t Drills are; knciwn for de;
accuracy a~ d unii irm drillim

■MM
OFFERS
YOU
QUALITY
FIRST
ALWAYS

HAY TOOLS

75 yarn

YOU ■
PAY NOTHING
EXTRA FOR
MM
MODERN
ENGINEERING

Uni-Biot er and U niversal
turns as >art of tractor.

t

T h e m o d e r n f a r m e r w h o d e m a n d s q u a l i ty m a c h i n e s w ill fin d
e v e r y t h i n g h e n e e d s fo r s u c c e s s f u l f a r m in g in t h e M in n e a p o lis M o lin e c o m p le te lin e of f a rm im p le m e n ts , b o th h o r s e a n d tr a c to r
d r a w n . T w o ty p ic a l e x a m p le s of t h e c o m p le te n e s s of t h e M M lin e
a r e s h o w n in M M B e e t T o o ls a n d M M H a y T o o ls.

6 row Beet ! 'rill Seed er attachment for MM fniversai
" Z " tractoi. A n accu rate beet planting i lit. Note
fertilizer qaus

HAY T O O LS
T h e M M s u lk y r a k e w a s t h e firs t i m p le m e n t m a n u f a c t u r e d b y
M O L IN E . F irs t b u ilt in 1 8 6 5 , it is t h e f o r e r u n n e r of t h e m o d e r n
c o m p le te lin e of M M q u a lity f a rm im p le m e n ts a n d t r a c to r s . T h e
M M h o r s e d r a w n m o w e r is p r o v i d e d w ith a u to m o tiv e - ty p e t r a n s ­
m is s io n , a n d t h e c l u t c h a n d a ll g e a r s a r e e n c l o s e d in a n o il t ig h t
h o u s in g . T h e M M U n i- M o w e r is o p e r a t e d b y p o w e r ta k e -o ff fro m
a n y m o d e r n w h e e l ty p e t r a c t o r . Its r o lle r c h a i n d r i v e o p e r a t e s in a
b a t h of o il in s i d e of a n o il t i g h t h o u s i n g . A u to m a tic s lip c l u t c h a n d
s a fe ty r e l e a s e h i t c h p r o t e c t t h e m o w e r fro m d a m a g e u p o n m e e tin g
s o lid o b s t r u c tio n s in t h e f ie ld .

Horse di
mower, f

quality

T h e M M C o m b in a tio n S id e D e liv e r y R a k e a n d T e d d e r is a b ig
c a p a c it y h a y r a k e . It h a n d l e s h a y q u ic k ly a n d e a s ily , l e a v i n g it
u n t a n g l e d , w ith t h e s te m s t u r n e d o u t w a r d fo r d r y i n g a n d t h e le a v e s
t u r n e d i n w a r d to p r e v e n t o v e r - c u r i n g

lent f ir MM U niversal

Tractor attached 2 row beet puller attachment for
MM U niversal tractorsM iftShef beets carefully with­
out bruising beets.H m a m

W *»

Single row horse drawn
sign. Q uality constructs

'A VsJUE

it puller. Scien tific de-

C Lùûayà


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Federal Reserve Bank of St. Louis

T h e n e w M M C o m b in a tio n C y l i n d e r a n d R a k e B a r L o a d e r c o m ­
b in e s t h e b e s t f e a t u r e s of b o th c y l i n d e r a n d r a k e r b a r lo a d e r s . It
p ic k s u p h a y c l e a n l y a n d e le v a t e s it s m o o th ly o n to t h e lo a d w i t h ­
o u t e x c e s s iv e c h u r n i n g a n d d a m a g e of le a v e s . It is e a s y p u llin g ,
e a s y h a n d l i n g a n d h a s g o o d f le x ib ility fo r t r a v e l i n g o n a n d c l e a n ­
i n g r o u g h u n e v e n f ie ld s . F ro m th e s ic k le to th e lo a d , M in n e a p o lis - M o lin e h a y i n g e q u i p m e n t w ill h a n d l e y o u r h a y c r o p q u ic k ly
a n d c a r e f u lly . It w ill e n a b l e y o u to s ta y a h e a d of b a d w e a t h e r , a n d
w ill i n c r e a s e t h e v a l u e of y o u r h a y fo r b i g g e r p r o fits .
BEET T O O L S
A w id e v a r ie ty of c h o i c e of b e e t r a i s i n g e q u i p m e n t is a f f o r d e d in
t h e c o m p le te M M B e e t T o o l lin e . M o lin e - M o n ito r B e e t D rills , k n o w n
fo r t h e i r d e p e n d a b l e a c c u r a c y a n d u n if o rm d r illin g , a r e a v a ila b le
w ith h o r s e o r t r a c t o r h itc h . H ill d r o p a n d c h e c k r o w a tt a c h m e n t s
a r e a v a ila b le . M M H o r s e d r a w n b e e t c u ltiv a to r s c u ltiv a te 2 , 3 o r 4
r o w s a t a tim e a n d a ffo rd a w id e r a n g e of a d ju s ta b ility fo r ro w
s p a c i n g . T h e M M U n iv e r s a l t r a c t o r a t t a c h e d b e e t c u ltiv a to r is a
h ig h ly e f f ic ie n t 4 o r 6 r o w c u ltiv a to r w ith g o o d r a n g e of a d ju s tm e n t
fo r r o w s p a c i n g . C u l tiv a tin g b e e t s is r e a l l y a p l e a s u r e w ith th is
s p e e d y , e a s y o p e r a t i n g u n it. A n o t h e r a d v a n t a g e in o w n in g a n M M
U n iv e r s a l t r a c t o r w ith b e e t c u ltiv a to r a t t a c h m e n t is th a t b y a d d i n g
a fe w s im p le , in e x p e n s i v e a t t a c h m e n t s , s u c h a s s e e d c a n s a n d
tu b e s , o p e n e r s , a n d p r e s s w h e e ls , y o u c a n c o n v e r t t h e M M 6 r o w
b e e t c u ltiv a to r in to a 6 r o w b e e t d r i ll s e e d e r . W h e n y o u 'v e f in ­
i s h e d p l a n t i n g , s im p ly r e m o v e t h e s e e d c a n s , t u b e s , o p e n e r s a n d
p r e s s w h e e ls , r e p l a c e t h e c u ltiv a to r s h a n k s a n d s h o v e ls , a n d y o u 'r e
r e a d y to c u ltiv a te .
T h e M M b e e t to o l lin e is r o u n d e d o u t w ith h o r s e d r a w n a n d
t r a c t o r a t t a c h e d B e e t P u lle r s . F o r a c o m p le te s e t of b e e t to o l e q u i p ­
m e n t o r fo r r o u n d i n g o u t y o u r p r e s e n t e q u i p m e n t , y o u 'l l f in d in
t h e M M c o m p le te lin e of Q u a lity B e e t T o o ls e v e r y t h i n g y o u n e e d
fo r m o r e p r o f ita b le b e e t r a i s i n g .

MODERN FARM MACHINERY

e and Tedde:
indrows.

MM Sulky Rake. Mi
pered, coiled teeth

MM Combination Cylind
long life, easy pulling, ei

|te design. O il
c a r r y the hay.

hnd Rake B ar Loader. A
¡handling loader.

cJ& u /¿# ig r 'J& u V a h ci

POWER ON
PARADE
DEPENDABLE . . . ECONOMICAL
MM Twin City Unit Engines and industrial tractors have met the exacting
demands of industry and agriculture. Day and night thousands of MM unit
engines are in operation, furnishing steady, economical, dependable
power in cotton gins, mills, in the oil fields, in grain elevators, in flour mills.
in mines and saw mills. Many more are oper­
ating power shovels and drag line excavators,
cranes, dredges, conveyors, compressors, and
generators. In industry and on the farm, MM
unit engines pump water for many purposes.
Many irrigation wells in all parts of the coun­
try depend on MM Twin City engines for effi­
cient, dependable and econom ical operation.
Many feed mills and com bines on the farm are
pow ered by MM engines. MM builds more
sizes of unit engines for all purposes than any
other tractor manufacturer — in sizes from 21
to 221 horse power — adapted for burning
gasoline, kerosene, distillate, natural gas or
butane.
MM Industrial tractors are chosen by in­
dustry and m unicipalities for the same reasons
that MM farm tractors are so popular with
farmers — econom ical operation, low upkeep
costs, longer tractor life, and dependable
power. Many cities and counties throughout
the United States employ MM industrial tractor
for both push and pull type road and street
graders, snow plows, and patrols. MM in­
C o m io rtrac to r a n d p o w er talce-oii d riv e n roto-tiller
dustrial tractors are em ployed by large indus­
o p e ra tio n m ix in g b lack -to p for r o a d su rfacin g .
trial plants in drawbar, belt and power take­
off work. The new MM industrial "U" tractor,
the "GT" industrial, the Comfortractor industrial model the "Z"
and "R" industrial models are all ! ' ' ^ '
pow er econom y leaders.
¡¡|

INDUSTRIAL
ENGINES

idei u n it e n g in *
cotton g in .

INDUSTRIAL
TRACTORS

MM 4 c y lin d e r e n g in e p u m p in g wa«J
la rg e irrig a tio n system .

in

ifo rtracto r a n d p u ll b e h in d ty p e ro ad
ler a n d p atro l.

N ew 6 c y lin d e r HE u n it e n g in e for
ap p lic a tio n to m a n y uses.

T h e new In d u stria l “ U " tra c to r.
N ew le a d e r in its class for all in d u s ­
tria l uses.
" G T ' in d u s tria l tra c to r tow s
la rg e a ir lin e rs in a n d o u t of
h a n g a rs .

MM u n it e n g in e s a re u n ­
e x c e lle d in th e oil fields.

T h e MM C o m fo rtracto r w ith p u sh ty p e snow
plow b re a k in g th ro u g h la rg e d rifts.
MINNEAPOLIS, MINNESOTA

OMAHA, NEBRASKA

HOPKINS, MINNESOTA
MOLINE. ILLINOIS

STOCKTON, CALIFORNIA


PEORIA, ILLINOIS
https://fraser.stlouisfed.org
FARCO, NORTH DAKOTA
Federal Reserve Bank of St. Louis

KANSAS CITY, KANSAS
MEMPHIS, TENNESSEE
DALLAS, TEXAS

43

N E W S A N D V IE W S
(C ontinued from page 34)
trav elin g th ro u g h N ew E n g lan d re ­
cently: “O. W oods & Co., L u m b e r”.
D orothy Gish is p laying th e leading
role in “Life W ith F a th e r”, w hich is
now ru n n in g in Boston. T he original
production opened in New Y ork on
N ovem ber 8, 1939, and is still playing
to capacity houses. T he play is by
H ow ard L indsay and R u ssell Crouse,
co-authors, w ho have w ritte n a n u m ­
b er of v ery successful plays.

Speaking of plays, M artha R ay has
a line in, “Hold Onto Y our H a t” in
w hich she is supposed to say, “The
jew els have been rescued from the
hotel.” T he n ig h t we saw th e show,
she said to A1 Jolson, “The Jew s have
been rescued from th e hotel,” and
b ro u g h t dow n th e house.

th a t in order for th e G overnm ent to
m ake th is plan w ork successfully it is
necessary for theG overnm ent to have
absolute control of all credit policies
of all th e banks by such banks being
m em bers of the F ederal R eserve Sys­
tem . E v ery b an k er also know s th a t
Mr. Eccles is a stro n g believer in large
b ran ch banking system s as opposed
to our u n it and independent system
of b an k s.”
m sm rn m

O

u

t - o

f - T

T here w as th e Scot w ho w as arguing
w ith a conductor as to w h e th e r th e
fare w as 50c or 75c. F in ally th e dis­
gusted conductor picked up th e Scots­
m an ’s suitcase and tossed it off the
train , ju s t as it passed over a bridge.
It landed w ith a splash. “M on”
scream ed the passenger “Is n ’t it
enough to try and overcharge me,
w ith o u t try in g to drow n m y little
boy?”
m m m m m xm m ,

o w

n

h

a

n

k

s

O u t-o f-to w n banks and bankers w ill find here
c o m p le te b a n k in g f a c ilit ie s fo r p r o m p t a n d

W alter E. Spahr, professor of eco­

nom ics, N ew Y ork U niversity, has no
fa ith in th e c u rre n t talk by some poli­
tician s th a t th e value of gold w ill be
destroyed by b arter. In a recen t dis­
cussion of th is subject, he said:
“Should a nation u n d e rta k e to de­
stro y th e p u rch asin g pow er of gold by
p ro h ib itin g its use in b arterin g , it
w ould be sm uggled. E v en d eath p en ­
alties in th e p ast have n o t stopped
th e sm uggling of gold in exchange for
desired com m odities and services. And
how can would-be sellers of com m odi­
ties be com pelled to sell th em for
som ething o th er th a n gold if th a t is
all th e y w ill accept? G overnm ents
can n o t control th ese th in g s as easily
as it seem s to be assum ed. H isto ry is
rep lete w ith am ple illu stra tio n s of th is
fact.
“The passage of tim e w ill m ake clear
th a t th e c u rre n t loose ta lk about th e
ab an d o n m en t of gold and th e com ing
re so rt to b a rte r or m anaged p ap er c u r­
ren cy re sts upon im agination, h e a r­
say, fear, or w ishful th in k in g ra th e r
th a n upon facts and u n d e rsta n d in g of
th e principles of m oney.”

e co n o m ica l h a n d lin g o f accou n ts in C h icago. W e
w o u ld appreciate the op p ortu n ity o f serv in g you.

C

N

it y

AND

TRUST

2 0 8

S O U T H

COMPANY

B

an k

of Chicago

L A S A L L E

S T R E E T

(Member Federal Deposit Insurance Corporation)

^

cN ew lo r is s p u la r
HOTE L

LIN C O LN

Don E. W arrick, se cretary of th e

In d ian a B ankers A ssociation, In d ia n ­
apolis, believes th a t m an y sm all
co u n try b an k s are being forced into
th e F ed eral R eserve system so th a t
in due tim e th e F ed eral R eserve Board
w ill have com plete control over all
th e b an k s in th e U nited States. Mr.
W arrick discussed th is recen tly in an
article, “Is T his a Squeeze P lay—And
Is It N ecessary?” In one p a rag rap h
Mr. W arrick says: “As I u n d e rsta n d it,
Mr. Eccles is a believer in planned
econom y and absolute control of our
cred it and m o n etary system by the
F ederal governm ent. He is also an
advocate of our spending our w ay out
of th e depression. Mr. Eccles believes

a t io n a l

44™ TO 45™ STS.AT 8™AVE.

1400 ROOMS from
Each with Bath, Servi­
dor, and Radio. Four
fine restaurants ac­
claimed for cuisine
MARIA KRAMER
P R E S ID E N T

John L. Horgan
Gen. Mgr.

•< 3°

HOTEL EDISON
S A M E OWNE RSHIP

■lhrm irri.'iniiiii

C Â i ü i n n |ujiiiuü._

IN THE C E N T E R OF MID-TOWN NEW YORK
Northwestern Banker Novem ber 1940


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

44

c lie

UNITED STATES

M e m b e r F e d e r a l D e p o s it I n s u r a n c e C o r p o ra tio n

Northwestern Banker Novem ber 1940

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

45
his position, effective N ovem ber 1st.
Mr. Beatie has a job in th e M idland
N ational B ank at Billings, M ontana,
as bookkeeper. The job is an advance­
m en t for Mr. Beatie. Mr. Beatie ex­
pects to leave F alls City N ovem ber 1st
and w ill take up his new job Novem ­
ber 4th. Mr. Beatie had been w ith the
local bank for th ree years.

NEBRASKA
NEWS
C A RL D. GANZ
P re sid e n t
Alvo

Fremont Meeting
J. F ran cis M cD erm ott, vice p resid en t
of th e F irs t N ational B ank of Omaha,
was th e principal sp eak er w h en the
F i r s t N ebraska R egional Clearing
H ouse A ssociation m et in F rem ont,
October 28th.
F orty-tw o b an k s in th a t te rrito ry
com prise th e m em bership of th is asso­
ciation w hich m et a t th e P ath fin d er
H otel for a 6:30 d in n e r preceding th e
business session an d program .
M cD erm ott’s su b ject w as “T he P ro ­
posed Sm all L oan L aw .”

Dies in Kearney
Jam es A. Boyd, 82, vice p resid en t of
the N ebraska S tate F air, died a t K ear­
ney recen tly of a h e a rt attack. In th e
death of Mr. Boyd, N ebraska has lost
an o u tstan d in g citizen.
He h ad been a m em ber of th e Ne­
b rask a S tate B oard of A g ricu ltu re for
th e p ast 17 years, an d no doubt w ould
have been p re sid e n t of th e S tate F a ir
th e com ing y e a r h a d he lived.
He cam e to K earn ey from Illinois in
1886, an d d u rin g his residence th ere,
served as cashier of th e F a rm e rs State
B ank for 36 years, an in stitu tio n w hich
he and his brother-in-law , Lew R obin­
son, founded. H e h ad been p resid en t
of th e Buffalo county fair, had served
m any y ears on th e city council, an d a t
th e tim e of his d eath w as th e oldest
continuous m em b er of th e K earney
Cham ber of Commerce.

Counterfeit Currency
On display a t th e City N ational B ank,
H astings, is a collection of co u n terfeit
currency. T he co u n terfeit specim ens
are displayed side b y side w ith com pa­
rable and legal bills so th a t spectators
m ay com pare them . Included in th e
display is a collection of old currency.
The display w as sen t h ere by th e F ed ­
eral tre a s u ry departm en t.

Meet at W ayne

New Quarters
WM. B. H U G H E S
S ecretary
Omaha

sociation at the organization’s an n u al
m eeting at W ayne.
E d g ar H oar of H artin g to n w as re ­
elected secretary -treasu rer, and F. S.
Stegge of R andolph w as elected a m em ­
b er of the executive com m ittee from
Cedar county.
E. W. R ossiter, V incent R ossiter,
L aw rence R ossiter, B ern ard B urton
and Mr. H oar, all of th e B ank of H a rt­
ington, atten d ed th e m eeting.

Saturday Closing
B eginning S aturday, N ovem ber 2nd,
all b anks in Paw nee county w ill be
closed on S aturday afternoon. This
w as agreed to a t a m eeting of th e b an k ­
ers of th e county held recently. The
step w as tak en in order to com ply w ith
th e W age and H our Act.
A ttending th e m eeting w ere Lee
F arw ell and Max Church, DuBois;
B ern ard S teinauer, Steinauer; F. H.
O berm ann and H arlan Schram , Burchard; Guy and M arion B onham , Table
Rock; M. K. V anH orne and Jo h n B arr,
Paw nee City.

Fritz Nicklas Dies
F ritz Nicklas, 70, vice p resid en t of
th e F irs t N ational B ank a t Syracuse,
and p ro m in en t Otoe county citizen,
died a t a hospital in H ines, Illinois,
w h ere he had gone th ree m onths ago
for treatm en t.
Mr. N icklas came to N ebraska City
in 1887 w hen he w as 17 y ears old. He
w as a n ative of G erm any. He w orked
a t th e N ebraska City N ational Bank,
th e n w en t to Syracuse 40 y ears ago to
become a ssistan t cashier of th e F irs t
N ational Bank.

Heads Draft Board
In an organization of th e Otoe Coun­
ty D raft Board, V. H. Goerke, B u rr
ban k er, w as nam ed chairm an. H a r­
vey Teten, N ebraska City banker, w as
nam ed secretary. Joe Gangel of N e­
b ra sk a City is th e o th er m em ber of the
board.

G.
E. B anks, B elden b an k er, w as To Montana
W illiam Beatie, a bookkeeper a t th e
elected p resid en t of th e N o rth east
N ebraska R egional C learing H ouse A s­ R ichardson County Bank, has resigned

Moving recently, the City N ational
Bank, H astings, opened at a new loca­
tion, occupying q u arters in th e city
building, across th e in tersection from
its old location at Second and H astings.
As th e bank moved, th e city w ater
and light office rem oved its files, office
equipm ent and fixtures to q u arters
form ally occupied by th e bank.
The bank m oved into th e city build­
ing u n d er term s of a 10-year lease w ith
the city.
Officers of th e City N ational, in oper­
ation since Jan u ary , 1934, are A. J.
Koelling, president; Dr. E. C. Foote,
vice president; Floyd A. H ansen, cash­
ier; W. J. Crockett, a ssistan t cashier;
Mrs. C arrie A. Stone, a ssistan t cashier;
E. A lberts, a ssistan t cashier; L. J. Siekm an and Dr. A. A. Sm ith, directors.

Clearings
M oney released in th e com m unity
by N ebraska C ity’s purchase of Waubonsie bridge boom ed b ank clearings
to $1,063,557.13 in Septem ber, a new
high, according to figures released by
th e N ebraska City Clearing House.
T he m illion dollar m onth, first on
record, assured a new record for an ­
nual clearings this year, boosting to­
tals w ell over th e four m illion dollar
m ark, w ith th ree m onths still to go.
T he figure com pares w ith $352,142.97
in Septem ber, 1939, th e previous high
Septem ber, and is n early double the
n ex t larg est m onth, established in
1936.

Meet in Fairbury
A bout 50 b an k ers from Jefferson,
Fillm ore, Saline, T hayer, Gage and
L an caster counties m et in F a irb u ry
for th e sem i-annual m eeting of th e
S ou th eastern N ebraska Regional C lear­
ing H ouse Association.
P au l Ude of Desler, form erly vice
presid en t of th e association, w as ele­
vated to th e presidency, w hile E d A us­
tin of B eatrice w as nam ed vice p resi­
d en t and C hester Bonsall of F a irb u ry
was elected secretary-treasurer.
A n executive com m ittee of six m em ­
bers, one from each of th e six counties
represented, w as nam ed to assist the
officers in th e ad m in istratio n of the
association’s affairs.
Speakers a t th e m eeting included
Northwestern Banker Novem ber 19^0


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

46

N E B R A S K A
A. L. Coad, p resid en t of th e P ackers
N ational B ank of Omaha, and E a rl H.
W ilkins, p resid en t of th e G eneva State
Bank.

Humboldt Meeting
N em aha county w as w ell re p re ­
sented at th e a n n u al m eeting of th e
F o u rth Regional C learing H ouse Asso­
ciation, an o rganization of b an k ers in
four so u th east N ebraska counties, held
at th e P a rk H otel in H um boldt.
The follow ing new officers w ere
elected: F. H. O verm an, B urchard,
president; H. R. D ressier, N em aha,
vice president; K en n eth Sandrock,
Falls City, secretary -treasu rer; Jo h n
Zacharias, A uburn, d irecto r for Ne­
m aha county; H erm an Schepm an, Tecum seh, directo r for Jo h n so n county;
Max Church, DuBois, directo r for
Paw nee county; George Froeblich,
Falls City, directo r for R ichardson
county. The prin cip al sp eaker w as
R ichard W. Trefz, Lincoln, w ho dis­
cussed th e u n ifo rm ity of b an k in g p ra c ­
tices.
Am ong th e fifty-two w ho atten d ed
th e m eeting, th e follow ing w ere from
N em aha county: R. W. D irks, cashier,
W. S. Maclay, a ssista n t cashier, and
L aw rence Rogge, bookkeeper, A uburn

NEWS

State Bank; Jo h n Z acharias, cashier,
and Clarence C astner, a ssistan t cash­
ier, Carson N ational Bank, A uburn;
C arrol Lewis, cashier, B ank of Peru;
H. R. D ressier, cashier, B ank of N e­
m aha; Clarke Casey, cashier, and F red
H oltgrew e, a ssistan t cashier, F irs t N a­
tional Bank, Johnson; Jam es P . Kelley,
cashier, C. D. H ahn, vice president,
and Jo h n Blinde, a ssistan t cashier,
F irs t State Bank, Johnson.

Buy W ayne Bank
R ecently it w as learned th a t R obert
M arek had p u rchased th e in terests of
Jo h n T. B ressler, Jr., in th e F irs t N a­
tio n al B ank a t W ayne. Mr. M arek w ill
succeed Mr. B ressler as presid en t of
th e bank.
A nnouncem ent of th e change in ow n­
ersh ip w as m ade at W ayne by Mr.
M arek and Mr. B ressler.
Mr. M arek is a b an k er by training.
He grew up in R ushville and prio r to
his com ing to Chadron he w as cashier
of th e U nion B ank at R ushville.
Up u n til a few m onths ago since
com ing to Chadron, Mr. M arek w as
an official of the C hadron M illing Com­
p any and in terested in th e business
financially.
Mr. M arek announced a t W ayne th a t

th ere w ould be no change in the board
of directors of th e F irs t N ational B ank
of W ayne nor in th e personnel of the
bank, o th er th a n the re tire m e n t of Mr.
B ressler from both th e office of p resi­
dent and board of directors.

Organize
Forty-tw o b an k ers from H am ilton,
Polk Sew ard, Fillm ore, Saline and
York counties m et a t Y ork and com­
pleted organization of th e Blue Valley
Clearing H ouse A ssociation. W. L.
Seng, McCool, w as elected president;
P aul Rogers, F riend, vice president;
T hom as A. Jam es of Strom sburg, sec­
re ta ry and treasu rer. T em porary or­
ganization w as started a y ear ago.

Head Regional
C. E. A rte rb u rn and C. E. Taylor,
ban k ers of St. Paul, w ere elected p resi­
dent and vice president, respectively,
at a m eeting of th e P latte Valley Re­
gional Clearing House, held a t the
Yancey H otel in G rand Island. A t­
tendance exceeded expectations by far,
w ith nearly 60 m em bers of th e associa­
tion present. Am ong o ther officers is
George A rm strong, now of G rand
Island, w ho is a m em ber of th e Board
of D irectors. A. E. D w ehus of Dannebrog also serves in th a t body.
Besides th e business m eeting a sh o rt
en te rta in m e n t program w as presented.
A D utch lunch preceded th e program .

Elected Cashier

Located in the heart of the
Live Stock F eed in g district—
WE ARE EQUIPPED TO TAKE CARE OF THE
ADDITIONAL NEEDS OF BANKS ON

FE ED E R L O A N S
W rite us

L ive Stock N ation al Bank
Omaha
( M e m b e r F e d e r a l D e p o s it In su ra n c e C o r p o r a tio n )

S.
H. Megown, form er em ploye of
the G uardian State B ank a t Alliance,
has been chosen as cashier of th e
F irs t N ational B ank of M inatare, suc­
ceeding George W. B roadhurst, w ho
resigned to becom e m anager of the
ScottsblufT
Livestock
Commission
Company. Mrs. Lena Golden w ill be
a ssistan t cashier and serve w ith H.
A. Sage and E. F. Wolf, also assistan t
cashiers.

India Rubber Man
“I know a m an w ho w orks as a
bouncer in a b ank.”
“W h at do you m ean, bouncer in a
b an k ?”
“W hy, he re tu rn s the ru b b er
checks.”

YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE, VAULT AND
TIMELOCK EXPERTS

F. E. DAVENPORT & CO.
OM AHA

Northwestern Banker Novem ber 19W

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

47
AAr. B. M illard, jr., vice presid en t of
the Om aha N ational Bank, w as one
of th e key m en in th e Omaha Cham ber
of Commerce m em bership drive last
m onth, as leader of one of the nine
crew s of cam paign w orkers.

R egional vice p residents elected at
th e A tlantic City convention of the
A ssociation of B ank W om en included
M iss E th el M ellor of th e Omaha N a­
tional Bank.

EM B ER S of th e N eb rask a B an k ­
e rs’ A ssociation, w ith executive
offices in Omaha, have sta rte d a m ove­
m e n t to clear up for th e public some
of th e “m y ste rie s” in th e b an k in g b u si­
ness, according to W illiam B. H u ghes,
v e te ra n se c re ta ry of th e group.
The association has offered speak­
ers from its ra n k s for m eetings
th ro u g h o u t th e state.
In a ta lk before th e O m aha Lions
club, Mr. H ughes said too m an y peo­
ple look on th e b a n k e r as a “p lu to ­
c ra t” because people “ju m p a t th e con­
clusion th a t th e m oney in b anks be­
longs to th e b a n k e rs,” w hen, of course,
it belongs to th e depositors, w ith th e
b an k ers m erely th e ir agents.
Services of b an k s are intan g ib le to
a large extent, Mr. H ughes explained,

M

and, therefore, are not appreciated by
a good m any people. Cashing checks,
for exam ple, entails a g reat deal m ore
clerical w ork and tra n sfe r of m oney
th a n th e average person realizes, he
stated.
Am ong h o n o rary pallbearers for N.
A. W illiam s, w ho rose from a laborer
to vice presid en t of th e U nion P a­
cific railroad, w as W. D ale Clark,
p resid en t of th e Om aha N ational
Bank. Mr. W illiam s died in Omaha
recen tly after an illness w hich forced
his re tire m e n t last June.
A M orm on service w as held in
Omaha. B urial w as at Salt Lake City.
Several m onths before his death, Mr.
W illiam s becam e in terested in the
M orm on ch urch and read its teachings
exhaustively. H ad his h ealth p er­
m itted, it w as said, he w ould have been
baptized into the church.

AV. D ale Clark, presid en t of the
Om aha N ational Bank, presided a t a
m eeting w hich heralded th e opening
of th e fall m em bership roundup of th e
Om aha Y. M. C. A. Mr. Clark, presi­
den t of th e “Y,” pointed to the need
of th e “Y ” as a public service in stitu ­
tion in Omaha and urged th a t eight
h u n d red new m em bers be sought.
Jack R hodes w as general roundup
chairm an.
M iss Jessie Clark, d au g h ter of W.
Dale Clark, presid en t of th e Omaha
N ational Bank, and Mrs. Clark, has
been chosen a m em ber of the college
choir at M acM urray College, Jackson­
ville, 111. M em bership is lim ited to 20
girls from u pper classes.
Mr. and Mrs. R ay R. R idge stopped
at the W aldorf-A storia on a recen t trip
to N ew York. Mr. Ridge is a vice
p resid en t of th e Om aha N ational
Bank.
\ \ . B. M illard, jr., vice p resident of
th e Omaha N ational Bank, w as nam ed
general ch airm an of the 1940 C hrist­
m as seal sale of th e N ebraska T u b er­
culosis association, w hich conducts th e

H otel
of “ PAYC” Accounts
are NEW BUSINESS!

W ellington

— an d P rofita b le from the S tart!

We are happy to list among
our regular guests, a large num ­

USER REPORTS $65 AVERAGE DEPOSIT

ber of the banking fraternity.

N e w c u s to m e rs a n d g r e a te r p ro fits a re
y o u r s w ith “ P A Y C ” ( P a y A s Y o u
C h e c k ) P l a n . S m a l l d e p o s i t o r s lik e t h i s
n e w , c o n v e n ie n t s e rv ic e . I t s o lv e s y o u r
“m o n e y - o r d e r ” p r o b le m ; e n d s m in im u m
b a la n c e a n d s e rv ic e c h a r g e p r o b le m s ;
sim p lifie s a c c o u n t h a n d lin g ; e n d s c h e c k
c h a r g e c o m p u tin g ; a n d p ro v id e s u n i­
f o r m h a n d lin g in a d v a n c e . M a n y le a d ­
in g b a n k s n o w u s in g th is p la n . W r ite
to d a y f o r f u ll d e ta ils .

Y ou too w ill thoroughly enjoy
our Courtesy and H ospitality.
WRITE TODAY FOR INFORMATION

S u rp risin g ly R easonable R ates
Rooms With Bath
$2.00— $2.50

Farnam at 18th Street
OMAHA

G et y o u r sh a re of th is s m a ll d ep o sito r
b u sin ess. W r ite to d a y , le t us show
you. “ P A Y C ” is c o p y rig h ted b ut no
r o y a lty ch arged .
C o m plete d e ta ils
o f p lan on req u e st.
A d d re ss D ept.
N W -N .

United States Check B ook Co.
O M A H A . NEBRASKA

Northwestern Banker

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

Novem ber 1940

48
an n u al cam paign from its Omaha
h ead q u arters. It is th e th irty -fo u rth
an n u al drive.
E m m et G. Solom on, a ssista n t tru s t
officer of the F irs t N ational B ank of
Omaha, is vice p resid en t of th e Om aha
D ow ntow n K iw anis club. He w as
to astm aster recen tly w h en O m aha’s
first u n it of Young B uilders, ju n io r
K iw anis group, received its c h a rte r a t
th e Omaha A thletic club.
R ichard H. M allory, vice p resident
of th e U nited S tates N ational B ank of
Om aha and a gen eral in th e recent
Om aha C ham ber of Com m erce m em ­
b ersh ip drive, had to “pay a fo rfeit”
a t a luncheon recen tly w hen th e radio
program , “T ru th and Consequences,”
w as put on for cham ber m em bers.

W hen th e U niv ersity of Om aha
A lum ni association recen tly honored
th e m em ory of Dr. D aniel E. Jen k in s,
founder and first p resid en t of th e u n i­
versity , a t th e first an n u al fo u n d ers’
day b an q u et a t th e u n iv e rsity au d i­
torium , W. D ale Clark, p resid en t of
th e board of regents, served as to a st­
m aster. Mr. C lark is p resid en t of th e
Om aha N ational Bank.
An oil p o rtra it of Dr. Je n k in s w as
presen ted to th e u n iv e rsity by Mrs.
H e rb e rt S. D aniel of Omaha, first m ay
queen a t th e u n iv ersity . Mrs. Stanley
Davies of Omaha, sister of Mrs. Daniel,
p ain ted th e p o rtrait. A ch air used by
Dr. Je n k in s w as p resen ted by Mrs.
Rene E. H. Stevens, fo rm er dean of
w om en a t th e u n iv ersity , and w ill be
placed in th e office of P re sid e n t Row ­
land H aynes.

Lincoln L oc a l s

B

E N N. S A U N D E R S, su p erin ten d en t

of th e N ebraska banking d e p a rt­
m en t for th e p ast six years, announced
recen tly th a t he and John Spear, Oma­
ha, a security broker, had bought the
controlling in te re st in th e F o rt K ear­
ney State B ank a t K earney.
“The plans are for me to take an
active p a rt in th e m anagem ent a fte r
J a n u a ry 1,” Saunders said.
Spear, b ro th e r of D istrict Judge
F re d L. Spear, F rem ont, w ill en ter th e
b ank N ovem ber 1. He form erly w as
em ployed by th e U nited States N a­
tional B ank at Omaha.
S aunders said stock in th e b an k had
been purch ased from P aul K annow,
cashier and vice president, w ho w ill
leave soon for California. T hom as
Gass w ill continue as p resid en t of th e
bank, it w as said.
T he state official said he h ad been
engaged in th e b anking business in
N ebraska for 30 years. He last w as

"Our Location "
Situated in Nebraska's Capital City, this
bank

is

splendidly

located

for special

service to Nebraska banks. Special service
is actually routine in our correspondent
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C o ntinental |\]atio nal

Ba k
8

L IN C O L N
/

M em ber F e d e ra l

Northwestern Banker Novem ber 19W

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

D e p o s it

In su ra n c e

C o r p o r a tio n

associated w ith a b ank a t P lainview
for 12 years. P reviously he had been
associated w ith banks at N iobrara and
C enter and had sp en t eight y ears as
receiver for th e state banking d ep art­
m ent in n o rth e a ste rn N ebraska.
The F irst N ational B ank of W alioo
recently told th e suprem e court banks
should not be held liable for contents
of safety deposit boxes w ith o u t giving
them exclusive control.
T he bank filed briefs as a “friend of
the c o u rt” supporting th e M artel State
B ank’s appeal from a L an caster coun­
ty d istrict court. H. Joe B ohm ont had
sued the bank to recover funds he
said had been tak en from his safety
deposit box th ro u g h th e b a n k ’s “neg­
ligence.”
“To hold th e b an k liable u n d er these
facts w ould place to g reat a b urden
upon the b ank and practically m ake
it a g u a ra n to r of th e contents of any
safety deposit box left in its care
w ith o u t giving it th e exclusive con­
tro l th ereo f,” th e b rief said.
“All banks, tru s t com panies, and
o ther persons or corporations w ho en­
gage in th e business of re n tin g safe
deposit boxes to custom ers are in­
terested in th e decision of th e court
in th is case.”
The N ebraska b anking d ep artm en t
announced v irtu a l com pletion of ad­
m in istrativ e b an k receiverships w ith
final liquidation of th e S tate B ank of
S urprise and Security S tate B ank of
Law rence.
B anking S u p erin ten d en t Ben Saun­
ders said only a few details rem ain in

SELL YOUR BANK
T h e “W a lte r s” W a y
W ith o u t P u b licity
Q ualified, carefully investigated bank
em ployees furnished free
T H E C H A R L E S E . W A L T E R S CO .
O m aha, N eb rask a

49

N E B R A S K A
th e receiverships, including some liti­
gation.
R epaym ents from th e S urprise b an k
totaled $43,384 to depositors and
stockholders.
L aw rence b an k rep ay m en ts ag g re­
gated $80,236. T he fo rm er w e n t into
receivership M arch 2, 1938, th e la tte r
October 13, 1939.
Back from th e a n n u al convention of
th e n atio n al association of supervisors
of state banks, Bon Saunders, state
b an k in g su p erin ten d en t, said th e gen­
eral im pression w as th a t b an k s are
“in b e tte r shape now to h andle a n ­
ticipated expansion u n d e r th e national
defense pro g ram th a n th e y w ere in
th e W orld W ar.”

N E WS

of F red G. H u lb u rd as director of ad­
v ertisin g and sales prom otion to fill
th e vacancy created by K nox A rm ­
strong, w ho resigned last m onth.
Mr. H u lb u rd has long been associ­
ated w ith com panies m an u factu rin g
and m ark etin g high grade specialties
and appliances. In his new capacity
as director of ad v ertisin g and sales
prom otion he can call on his p ast ex­
perience as retail salesm an, d istrict
m anager, branch m anager, conven­

tion m anager, and advertising and
sales prom otion m anager, to help
guide th e ad v ertisin g and sales pro­
m otion plans for V ictor’s 1941 overall
program .
F o r th e p ast ten y ears Mr. H u lb u rd
has filled various positions of im por­
tance in th e N ash-K elvinator C orpora­
tion at D etroit. He recently resigned
th e position of a ssistan t to th e sales
m anager of th a t Com pany to tak e up
his duties w ith Victor.

Former Banker Injured
J. T. Sim m ons of A uburn, fo rm erly
cashier of th e old B row nville and old
Ju lia n banks, w as in ju re d w hen his
autom obile and a big tru c k collided as
he w as d riv in g n e a r N ebraska City.
A t St. M ary’s H ospital at N ebraska
City, it w as said th a t one side of Sim ­
m ons’ body w as badly cru sh ed an d his
condition w as grave. Sim m ons is a s­
sista n t to C. T. D augherty, city a tto r­
ney at A uburn. He is about 45.

Holdredge Meeting
T w enyt-six H astin g s b an k em ployes
w ent to H oldrege to a tte n d a d istrict
m eeting of th e South C entral Clearing
H ouse A ssociation.
The H astings group w as headed by
p resid en ts of th e tw o local banks, H.
G. P r a tt of th e H astings N ational and
A. J. K oelling of th e City N ational.
A ppearing on th e pro g ram of th e
association’s ju n io r division w as W il­
son B row nlee of th e H astings N a­
tional.
Those atte n d in g from th e H astings
N ational B ank w ere H. G. P ra tt, O. A.
Riley, C. E. Deets, M arguerite Eigenberg, H azel H orn, H elen Byers, Joe
Bauer, M erton Sugden, L aw rence McCune, R alph K atzberg, F ra n c is W eiler,
Leo Swigle, Doris Shiefelbein, D orothy
P ark, W ilson B row nlee, H ow ard Bauder, R aym ond W atson, M elvin Meininger, M arvin Koepke, and Reed Kohl.
A tten d in g from th e City N ational
B ank w ere A. J. Koelling, F. A. H a n ­
sen, W illiam C rockett, Don A nderson
and E d A lberts.
R epresen tin g the Providence F i­
nance Com pany w as George J. Adams.

P art of the Bookkeeping Divistoti
Commercial D epartment

C

o n t in e n t a l

N
a n d

a t io n a l

T

r u s t

o l

C

C

I
B

l l in o is
a n k

o m p a n y

h ic a g o

Director of Advertising
M. S. Bandoli, general sales m an ag er
of th e V ictor A dding M achine Co., Chi­
cago, has announced th e ap p o in tm en t

M em ber Federal Deposit Insurance Corporation

Northwestern Banker Novem ber 19M)

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

50

MR. TURKEY IS
IN CASH TO TH

In tens of thousands of farm homes in the Northwest —
people are beginning to “ talk turkey.“ It is big business. For
poultry is the fourth biggest branch of agriculture. One big
Northwest turkey pool alone sells 280 cars (20,000 lbs. per car)
of turkeys.
Succulent ambassadors of good will and good eating from
the crisp, bracing air of the Northwest to grace Eastern tables
on Thanksgiving Day. Every turkey specially graded, carefully
dressed, and painstakingly packed in boxes.
Home of the Northwestern
N ational Bank and T rust
Company — in the financial
ce n te r of M inneapolis —
where highly trained special­
ists in correspondent banking
service are ready to serve you.

Yes, turkeys are big business. To the farmer — to the
consumer — to you and me. For only California and Texas
outdo Minnesota in poundage. It is up to us to provide prompt,
efficient handling of turkey money. Send your drafts to the
“Northwestern.” We are no farther away than your typewriter,
telegraph or telephone.
D e p a r tm e n t o f B a n k s a n d B a n k e rs
W

m.

Vice President

L . P . G is v o l d
Asst. Cashier

D. E . C rouley
Asst. Cashier

F . W . C onrad
Asst. Vice Pres.

N . J oh n so n

NORTHWESTERN NATIONAL BANK
AND TRUST COMPANY
O f M in n ea p o lis
A f f i lia t e d w it h N o r t h w e s t B a n c o r p o r a t i o n
D

Northwestern Banker

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

Novem ber 1940

E

P

O

S

I

T

I

N

S

U

R

A

N

C

E

OI

S tark w as th e p resid en t sho rtly after
the tw o engaged in business. F irst
th ey opened a p riv ate bank in 1882, in
a sm all wooden building w here D ick’s
store now stands. T heir capital w as
$7,000. W ithin six m onths th e ir b u s­
iness grew to such proportions th a t
th ey saw th e need of expanding so in ­
corporated as a state b ank and w ere
capitalized a t $25,000.

MINNESOTA
NEWS
K . O. SA T T R E
P re s id e n t
B lue Earth.

W IL L IA M DUNCAN, J r .
S ecretary
M inneapolis

Mankato A. I. B.

Menge Dies

M att P allu ck is th e new p resid en t
of th e M ankato chap ter, A m erican
In stitu te of B anking, w hich is con­
ducting a stu d y course in econom ics
for local b an k em ployes th is year.
O ther officers elected a t th e a n n u al
m eeting are W ilbur M iller, vice p re s­
ident, and George Volz, secretarytre a su re r.
U rb an Sm ith, re tirin g
president, W a rn e r A nderson, R ichard
L ittle an d M onte Z im m erm an w ere
elected to th e board.
W illiam V erhage is teach in g th e
course in econom ics offered b y th e
ch ap ter th is year.

W illiam L. Menge, a long tim e resi­
d en t passed aw ay a t his hom e in E m ­
m ons recently, a t th e age of 74 years.
He w as a pioneer se ttle r in F reeb o rn
county, having come w ith his p aren ts
about th e y ear 1876. H e had resided
in N unda tow nship from th a t tim e u n ­
til he m oved to E m m ons in 1938.
Mr. M enge w as a director of th e
F irs t N ational B ank of Em m ons from
1904 u n til th e tim e of his death. He
w as elected vice presid en t of th e b ank
in 1914, and served in th a t office u n til
1928, w hen he w as elected president.
He served in this office until th e tim e
of his death.

Purchase Is Voted
Stockholders of th e C hisholm F irs t
N ational B ank voted ap proval of th e
pu rch ase of th e M iners S tate B ank a t
a re c e n t m eeting. A to tal of 536
sh ares w as re p re se n te d a t th e m eet­
ing, w hile proxies fo r an additional
256 w ere on hand, out of a to ta l of
1,000 shares.
F irs t N ational officials w ill now
send notices to stockholders, p ointing
out th e ir rig h ts in th e p u rch ase of
new stock for w hich fo u r sh ares of
th e old w ill e n title th e h older to one
new share, alth o u g h each stockholder
is en titled to b u y a t least one com ­
m on an d one p re fe rred share.
I t w as expected th a t sale of th e
new stock w ould be com pleted by th e
end of October. B oth th e F irs t N a­
tional an d th e M iners S tate B anks
w ere in co rp o rated in 1905.

Quarterly Meeting
T he board of directors of th e F irs t
State B ank, Big F o rk , held th e ir re g u ­
la r q u a rte rly m eeting in th e offices
of th e b an k la st m onth. T he board
consists of L. F. H arm on, president, C.
F. G ilbertson, cashier, an d F ra n k
T urck, F ra n k D ahlberg an d Mike
Braa. Mr. B raa w as ab sen t due to ill
health.
M em bers expressed them selves as
w ell pleased w ith th e m an ag em en t of
th e bank. B ank footings w ere th e
hig h est in th e h isto ry of th e in s titu ­
tion.

To Luverne Bank
Reid Cleland, a ssistan t cashier a t
th e U nion S tate B ank in M ontevideo,
has been tra n sfe rre d to th e Rock
C ounty B ank a t L uverne.
Mr. C leland’s tra n sfe r to th e L u ­
vern e bank, w here he w ill act as a s­
sista n t cashier, is in the n a tu re of a
prom otion. H e has been associated
w ith th e U nion S tate B ank for th e p ast
five and one-half years.
Both Mr. and Mrs. Cleland are life­
long residents of M ontevideo.

Dies in Crash
F u n e ra l rites for G erhard (Gay)
F laata, w ho died in an airplane crash,
w ere held recen tly in B rainerd.
A n em ploye of th e F irs t N ational
B ank of B rain erd since F eb ru ary , 1919,
F la a ta h ad been cashier since J a n ­
u a ry 1, 1940. He grad u ated from
B rain erd h igh school in 1918.

St. Peter Banker Dead
E dw in R. Moore, an early resid en t
of St. P e te r w ho w ith th e late H. L.
S tark founded th e N icollet County
B ank, died recen tly in Seattle. De­
ceased w as born in H arrisb u rg , P en n ­
sylvania, ni 1849 and w as th u s p ast
91 y ears of age. He came to St. Paul
as a young m an and ev en tually to St.
P e te r w here he engaged in th e b a n k ­
ing business. H e served as cashier of
th e new N icollet county b an k and Mr.

Buy W abasha Bank
N egotiations w hich have been pend­
ing for some tim e w ere com pleted last
m onth, w hereby A. J. Doffing of M in­
neapolis, and associates, purchased
controlling in te re st in th e F irs t N a­
tional B ank of W abasha.
A t a m eeting of th e board of di­
rectors L in n W hitm ore, re tirin g cash­
ier, w as elected presid en t to succeed
W. B. W ebb, senior. Mr. W hitm ore
w ill serve u n til th e an n u al m eeting in
Ja n u a ry and w ill be in active charge
of th e ban k u n til th a t time.
At th e sam e m eeting A. R. E vans
of M inneapolis and Mr. Doffing w ere
elected to th e board of directors to
succeed H. H. W hitm ore, re tirin g
first a ssistan t cashier, and A. W. H at­
field of W abasha, w ho resigned.
Mr. Doffing w as elected active vice
p resident and cashier.

Group Elects
The Five C ounty B ankers associa­
tion elected E. V. E rickson, of th e
Cam bridge State Bank, president, w ith
R oland Campbell, Mora, vice p resi­
dent, J. Hovey, Milaca, secretarytreasu rer, and A. E. A nderson, Braham, m em ber of th e board.

Heads Mortgage Bankers
N orm an H. N elson w as elected p re s­
ident of th e St. P au l chapter, M ortgage
B ankers of A m erica, in a recen t m eet­
ing.
O ther officers nam ed are: A ugust F.
R ohleder, vice president, and Rohland
H. Thom ssen, secretary-treasurer.

President Dies
M. H. Nelson, 87, form erly of De­
corah, Iowa, died a t his residence in
Mabel from pneum onia.
S urviving
are his widow, tw o dau g h ters an d five
sons. At th e tim e of his death he
w as p resid en t of th e F irs t S tate B ank
of Mabel, having sta rte d th e b an k here
in 1907.

New Building
E xcavation w ork is u n d er w ay for
the erection in H utchinson of a m od­
ern new b ank building 28x50 feet
w hich w ill house th e F irs t S tate Bank.
The stru c tu re w ill be of tile an d brick,
w ith full basem ent, an d w ill have
Northwestern Banker Novem ber 1940


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

52

M IN N E S O T A
every m odern facility. T he old b an k
building has been m oved east a few
feet and w h en th e new is com pleted
w ill be offered for sale or ren t. A new
brick fro n t w ill dress it up.

Goes to Austin
Al H. H aakenson, a ssista n t cashier
a t th e Rock C ounty bank, L uverne, has
accepted a sim ilar position a t th e A us­
tin S tate B ank a t A ustin, M innesota.
Mr. H aakenson had been em ployed by
the local b an k since M ay 1, 1936, ex­
cept for eight m o n th s w h en he w as
associated w ith th e exam ining d e p a rt­
m en t of th e N o rth w est B ank corpora­
tion.

70 Years of Banking
S eventy y ears of ban k in g have been
carried on by th e Zapp fam ily, heads
of th e Zapp S tate B ank in St. Cloud.
Jo h n Zapp, county re g iste r of deeds
at th e tim e, began to accept m oney
from his friends for safe-keeping in
1870. He invested th e m oney in farm
m ortgages a fte r giving his frien d s re ­
ceipts or notes, and his operations
w ere so successful th a t in 1889 he de­
cided to s ta rt a p riv ate bank.
N am ed Z app’s L oan Bank, it w as
starte d in a sm all brick building ju s t

THE

V

NEWS

w est of the courthouse. The b ank had
$100,000 in deposits a t th e onset, th e
am o u nt Zapp had invested for his
friends.
On Ju ly 1, 1907, Z app’s S tate B ank
officially came into being and w as in ­
corporated u n d er state laws. Officers
w ere Jo h n Zapp, president; Theodore
B ruener, vice president; E dw ard Zapp,
cashier; George R osenberger, book­
keeper. D irectors included Jo h n Zapp,
E d w ard Zapp, T heodore B ruener,
F ra n k F andel and M ath W eyrens.
The b ank rem ained in th is tin y
building on co u rt house square u n til
1914, w hen th ey m oved to th e ir p re s­
e n t q u arters. In conjunction w ith th e
bank, th e Zapps have conducted th e
Zapp A b stract Com pany doing S tearns
county ab stractin g since th e ir bank
opened.
Jo h n Zapp died October 17, 1915. an d
his son succeeded him as president.
R ecently H. G. Young died and Otto
Zapp succeeded him as vice president.
In recen t years, also, th e th ird g en era­
tio n has begun to en ter th e b an k m an ­
agem ent w ith E d w ard Zapp, junior,
nam ed to th e board of directors.
Officers at p resen t are: E d w ard
Zapp, president; Otto Zapp, vice p res­
ident; Jo h n B uettner, cashier; and W.
F. Zapp, a ssistan t cashier.

TRAVEL TREND

A location in the center of the
downtown district, with shops
and amusements nearby, at­
tracts travelers to this fine
hotel - where they invariably
enjoy the comfortable accom­
modations, the fine food in
(he Coffee Shop, and the
superior service. G a ra g e
service. All rates reasonable.
WITHOUT A 50 WITH
BATH
BATH
4th STREET AT H EN N E PIN
A. W. STADE
M anager

A

THE N E B R A S K A
C O N V E N T IO N
(C ontinued from page 12)
m oved and m issed out last m o n th on
th e Illinois group m eetings. Mr. Cov­
ert, how ever, is recu p eratin g rapidly
from his operation.
The F ir st N ational B ank of Omaha,
w hich m ain tain ed popular h ead q u ar­
ters a t th e L incoln Hotel, passed out
clever invitatio n cards to th e ir m any
friends and custom ers. The card
read, “See y o u r first friends first in
Room 321.”
Charles K uning, a ssistan t vice presi­
dent of th e A m erican N ational B ank
and T ru st Com pany of Chicago, w as
happy to re p o rt a t th e Lincoln m eet­
ing th a t th e in stitu tio n w hich he rep ­
resen ts last m onth reached a total of
$75,000,000 of deposits. The b ank has
now been located on La Salle S treet
for six years th is December. The
A m erican N ational, w ith M essrs. Van
H orne and K u ning as hosts, staged a
b reak fast in L incoln for its friends
and custom ers.
T. B. Strain, p resid en t of th e Conti­
n en tal N ational B ank of Lincoln, in
addition to his stren u o u s duties as
ch airm an of th e G eneral Convention
Com m ittee, h ad ju s t com pleted, the
w eek of th e convention, his strenuous
w ork as ch airm an of th e Lincoln
C om m unity Chest Drive. The D rive
exceeded its quota of $167,671.00 for
th e fo u rteen th consecutive year.
Dr. M elchior P a ly i of Chicago, noted
lectu rer and w riter, w as one of th e
headline speakers a t th e Lincoln con­
vention, talk in g on “T he T u rning
P o in t of th e W ar.” Dr. Palyi said th a t
R ussia is th e key to th e p resen t dead­
lock in E urope, and th a t all m oves of
th e axis pow ers are e ith er based on
forcing R ussia into th e axis activities
or blocking h e r out com pletely if she
is unw illing to do this. He also gave
as his opinion th a t w ith in a v ery short
tim e b oth th e U nited States and R us­
sia m u st come out into the open as
to th e ir p erm a n e n t positions in the
w ar.
,
W illiam A llen, a ssistan t vice presi­
den t of th e C entral H anover B ank and
T ru st Com pany of New Y ork City,
m ade a special trip out to the Middle
W est to a tte n d th e N ebraska conven­
tion. He b ro u g h t Mrs. A llen to St.
Louis, h e r form er hom e, w here she
visited du rin g th e N ebraska m eeting.

(T u rn to page 56, Please)
Northwestern Banker

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Federal Reserve Bank of St. Louis

Novem ber 1940

53

T w i n C ity N e w s

R OBERT E. BARRON, 66, p resid en t
of th e F irs t N ational B ank of
Minot, N o rth D akota, died in M inne­
apolis recen tly a fte r a len g th y illness.
F o rm e r p resid en t of th e N orth D akota
B ankers A ssociation, he had headed
th e b an k since 1914 and been a m em ­
ber of its staff since 1901.
N ew ly elected cashier of ChicagoLake State B ank, M inneapolis, is D. W.
Palm er. B orn in H arris, M innesota,
he sp en t 30 m onths in th e State B ank
there, th e n w as w ith F irs t N ational
B ank & T ru s t Com pany, M inneapolis,
for five years. H e joined th e cash ier’s
d e p a rtm e n t of Sears, R oebuck & Com­
pany in M inneapolis, w ork in g th e re
th re e years. T h en he w as nam ed cash­
ier of th e C learw ater, M innesota, State
Bank, serv in g th e re nine years, u n til
its v o lu n ta ry liquidation last F e b ru ­
ary.
B. W. Lohm ar, m an ag er of th e N o rth
Side Office of F irs t N ational B ank &
T ru st Com pany, M inneapolis, w as
elected p resid en t of th e E xch eq u er
Club of M inneapolis at th e opening
m eeting of th e 1940-41 season. He suc­
ceeds V ernon E. M ikkelson, president,
F id elity State Bank.
Gordon E. Earkin, vice president,
M arquette N ational Bank, w as ad­
vanced from se c re ta ry -tre a su re r to
vice president, succeeding Mr. L oh­
m ar, w hile E. J. Olson, m anager, L in ­
coln office, N o rth w e ste rn N ational
B ank & T ru st Com pany, w as nam ed
Mr. L a rk in ’s successor.
J. S. P om eroy, vice president, F irs t
N ational B ank & T ru s t Com pany, and
E. A. Purdy, vice president, W ells
Dickey Company, w ere am ong direc­
to rs of the M inneapolis Civic & Com­
m erce A ssociation nam ed a t th e a n ­
nu al m eeting.

By James M. Sutherland

an o th er for 25 cents a sh are paid Octo­
ber 2, 1939.

Special Correspondent

D ividend of $2.50 a share has been
declared by Colum bia H eig h ts State
Bank, w hich celebrated its th ird b irth ­
day October 18th.
C. A. M aley, a ssistan t vice president,
A m erican N ational Bank, St. Paul, w as
elected p resid en t of th e C orporate F i­
duciaries A ssociation of M innesota at
th e annual m eeting in M inneapolis.
O ther officers nam ed w ere V. W.
M aser, a ssistan t cashier and a ssistan t
tr u s t officer, M idland N ational B ank &
T ru st Company, M inneapolis, and R.
M. T olleson, vice p resid en t an d tru s t
officer, M erchants Bank, W inona, vice
p residents, and C. R. M iller, assistan t
secretary and a ssistan t tru s t officer,
F irs t N ational B ank & T ru st Com­
pany, M inneapolis, secretary-treasurer.
U n iversity State Bank, M inneapolis,
has increased its capital from $50,000
to $100,000 by p aym ent of a stock divi­
dend out of accrued and accum ulated
earnings, according to R alph W. Man­
uel, p resid en t of M arquette N ational
B ank, w ith w hich U n iversity S tate is
affiliated.
The b an k now has capital of $100,000, su rp lu s of $20,000, undivided prof­
its of $13,000, and deposits of $1,300,000.
O. H. Odin is president.
Checks totalin g $878,561.70 w ere re ­
ceived by m ore th a n 1,500 sh arehold­
ers of F irst B ank Stock Corporation
w h en th e b an k holding com pany’s
dividend of 30 cents a sh are w as dis­
bursed.
T otal dividends paid in th e p ast year
w ere $1,757,477.40, including one for 30
cents a share paid A pril 1, 1940, and

Carl Gray, executive vice president
of the Chicago, St. Paul, M inneapolis
and Om aha Railroad, and Dr. A lonzo
T aylor, director of research for Gen­
eral Mills, Inc., have been am ong
speakers at first sessions of th e lecture
course sponsored by the M inneapolis
C hapter, A m erican In stitu te of B ank­
ing. The course covers the subject,
“A m erica’s In tern atio n al and Domes­
tic P roblem s.”
The c h a p te r’s an n u al fall frolic w as
held October 9th. Thom as M. K elly
w as chairm an of arran gem ents.
M alcolm B. M cDonald, M inneapolis
atto rn ey , has been appointed general
counsel of F irs t N ational B ank &
T ru st Company, according to an ­
nouncem ent by L ym an E. W akefield,
presdient. H is services w ill be de-

JAM IESON
&

COMPANY
Stocks
Bonds
Grain

Commodity Brokers
•
Members

New York Stock Exchange
and Other Principal Exchanges
•
ST. PAUL — MINNEAPOLIS
•

Government — Municipal
Corporation Bonds
•
CHARLES C. RIEGER
Manager

Bond Department
Minneapolis — Atlantic 8235
__________________________________

Northwestern Banker

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Federal Reserve Bank of St. Louis

Cotton
Butter
Eggs

q

Novem ber 1940

• M IN N E S O T A
voted largely to th e w o rk of th e b a n k ’s
tru s t departm en t.
N orthw est Bancorp oration on No­
vem ber 25th w ill pay a dividend of
10 cents a sh are to stockholders of
record Nov. 9th. T he p ay m en t w ill
aggregate $155,983.
D irectors of th e b an k holding com ­
pany, beside v oting th e dividend, a u ­
thorized additional in v estm en ts of $2,035,000 in 14 affiliated b an k s for th e
purpose of expediting re tire m e n t of
all p referred stock in such banks.
W ith seven o th er b an k s slated to

NEWS

re tire th e ir p referred stock from th e ir
ow n resources, th is w ill m ean all re ­
m aining p referred stock and deben­
tu res w ill be re tire d by D ecem ber 31st.
T his w ill com plete rep ay m en t to the
R econstruction F inance C orporation of
$25,705,000 in advance approved by th e
RFC in December, 1933.
W illiam J. S teven son , vice president
and tru s t officer of F irs t N ational
B ank & T ru st Company, has decided
to re tire Ja n u a ry 1, 1941. He w ill con­
tin u e on th e b a n k ’s staff in an ad ­
visory capacity for several m onths.

•
E n terin g th e fiduciary field in 1916
w ith th e new ly-organized W ells-Dick­
ey T ru st Company, he continued as
vice presid en t and tru s t officer w hen
th a t organization m erged w ith F irs t
M inneapolis T ru st Company.
U n iv ersity State B ank has secured
a national c h a rte r and now is know n
as U n iv ersity N ational Bank. It con­
tinues its affiliation w ith M arquette
N ational Bank, w ith w hich it has been
associated since 1929. The sam e offi­
cers and directors continue.

New officers of th e Tw in City Bond
T raders Club, installed a t th e ann u al
m eeting, are R. M. Rice, R. M. Rice
& Company, president; A rthur Rand,
Jr., W oodard-Elw ood & Company, sec
retary ; J. S. F inrud, F irs t N ational
B ank & T ru st Company, vice presi­
dent; and E. J. K night, W ells-Dickey
Company, treasu rer.

Peck Resigns
‘The Bank at the Y ards’
D IR E C T O R S
O F F IC E R S
C. L. F red ric k se n , P re s id e n t
M. A. W ilso n , V ice P re s id e n t and C ash ier
W . G. N elso n , A s s is ta n t C ash ie r
W . C. Schenk, A s s is ta n t C ash ier
L. W . R oss, A s s is ta n t C ash ier

C. R. M cK enna, P re s id e n t, Jo h n so n B isc u it Co.
B. L. Sifford, A tto rn e y , S ifford & W ad d e n
G. F. S ilk n itte r, P re s id e n t, S ioux C ity
Stock Y ard s C om pany
C. L . F re d ric k se n , P re s id e n t
M. A. W ilso n , V ice P re s id e n t and C ashier
H. C. B osw ell, S e c re ta ry -T re a s u re r,
W e s te rn C o n tra c tin g C o rp o ratio n

Your Sioux City Business

M ark B. Peck, an a ssistan t cashier of
The N ational City B ank of New York,
resigned last m onth to accept a vice­
presidency of th e A utom atic C anteen
Com pany of Am erica, in Chicago.
A fter spending some m onths a t th e
hom e office of th e com pany, Mr. Peck
w ill re tu rn to New York, w here he will
open an office from w hich he w ill
supervise Com pany affairs in eastern
territo ry .

Net Earnings
This bank is thoroughly eq uipped to h andle
your com plete Sioux City and Sioux City terri­
tory b u sin ess.
. . W e h an d le your live stock
sp e e d ily right here in the Yards.

b u sin ess

. . W e g iv e your grain and h a y item s the
sa m e quick service.
. . W e are a b le a lso to take care of your
entire Sioux City b u sin ess quickly and efficient­
ly, through arm ored car service.

L IV E S T O C K
N A T IO N A L Ì
S io u x City, Iowa
M ember F e d e ra l D eposit In s u ra n c e C orporation

Northwestern Banker Novem ber 1940

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

Com m ercial In v estm en t T ru st Cor­
poration and subsidiaries re p o rt com­
bined n et earnings (unaudited) for
th e q u a rte r ended Septem ber 30, 1940,
of $4,315,103, w hich a fte r provision for
dividends of $101,406 on th e p re fe r­
ence stock, leaves n et earnings of $4,213,697 on th e com m on stock, or $1.19
p er share.
F o r nine m onths ended Septem ber
30, 1940, n et earn in g s w ere $11,640,794,
equal afte r dividends on th e p re fe r­
ence stock of $3.20 p er sh are on the
com m on stock. T hese earnings are
after deduction of th e additional 3.1
per cent F ed eral corporate incom e tax
im posed u n d er th e second revenue act
of 1940, approved O ctober 8, 1940, b u t
before provision u n d er th a t act for
excess profits tax, w hich w ill n ot be
determ inable p rio r to th e end of th e
year.
The above earnings com pare w ith
earnings of $1.17 p er com m on share
for th e q u a rte r ended Septem ber 30,
1939, and $3.23 p er com m on share for
the nine m onths ended on th a t date
after F ed eral corporate incom e tax at
th e low er rates th e n in effect.

Ofi

units, th e ir only connection being in ­
terlocking directors and stockholders.

SOUTH

Another A. I. B. Class

DAKOTA
F . F. P H I L L I P P I
P re sid e n t
M ilbank

NEWS

New A. I. B. Group
R ep resen tativ es of v arious b anks in
th e vicin ity of B rookings have org an ­
ized a stu d y group of th e A m erican
In stitu te of B anking at a special m eet­
ing p resided over by A dolph Lodmill,
Sioux Falls, p ast d istric t su p erv iso r
of th e A. I. B.
B anks in B rookings and s u rro u n d ­
ing counties are included in th e new
stu d y group w hich w ill hold reg u lar
m eetings beginn in g in Novem ber.
A bount tw e n ty p ersons w ere p resen t
at th e o rganization m eeting w hich in ­
cluded a luncheon.
Officers elected to head th e u n it to
be know n as th e E a ste rn South Da­
kota G roup of th e A. I. B. include
F. A. Olson, T oronto, presid en t; Miss
D orothy Coffey, B rookings, secretarytre a su re r. A board of governors con­
sists of E. P. Sagmoe, Sinai; C. A.
Lovre, Brookings; C. E. Lee, Volga;
and W m. Habel, A rlington.
O ther com m ittee m em bers include
G ordon M axan, L ake P re sto n and A.
J. Boeder, E stalline, m em bership and
publicity; C. G. M artinson, Toronto;
H en ry Thom pson, Sinai, and L eonard
P eterson, Oldham, education and fi­
nance.

Group Meetings
S ecretary George M. S ta rrin g of th e
South D akota B an k ers A ssociation a n ­
nounced th e follow ing regional meettings :
G roup V, N ovem ber 16th at H uron;
G roup IV, N ovem ber 18th at A ber­
deen; G roup VI, N ovem ber 19th at
M obridge; G roup V II, N ovem ber 20th
at R apid City; G roup III, N ovem ber
21st a t C ham berlain; G roup I, Novem ­
ber 22nd a t T yndall, and G roup II,
N ovem ber 23rd at Sioux Falls.

G EO R G E M. S T A R R IN G
S ec re ta ry -T rea su re r
H u ro n

sam e location as th e old b an k build­
ing destroyed by fire two y ears ago.

On Vacation Trip
W illiam A ndrew of th e F irs t Na­
tional B ank staff, Lead, and Mrs. A n­
drew s arriv ed hom e recently from a
ten days’ vacation trip. T hey w en t by
car to Mobridge, South Dakota, and
boarded th e tra in at th a t point for
M inneapolis w here th ey w itnessed
th e M innesota-N ebraska football game,
w ent on to Chicago and visited th eir
d aughter, Yvonne, w ho is employed
there, and also atten d ed th e Ohio
S tate-N orthw estern football gam e at
E vanston. T hey re tu rn e d by w ay of
M obridge w here th ey left th e ir car.

A. I. B. Appointment
R. M. D ePuy, vice presid en t of th e
N orthw est S ecurity N ational B ank of
Sioux F alls and m anager of the
B rookings branch, has been appointed
a m em ber of th e ag ricu ltu ral com m is­
sion of th e A m erican B ankers Asso­
ciation for a three-year term .
Mr. De P u y w as appointed to th e
national group by P. D. H ouston, N ash­
ville, Tennessee, presid en t of th e
A m erican B ankers Association. I t is
believed to be th e first tim e any South
D akotan has served on th e com m is­
sion.
Mr. De P u y has served th e South
D akota B ankers A ssociation as ch air­
m an of its ag ricu ltu ral com m ittee for
the p ast tw o term s, and it is his w ork
on th is group th a t led to his ap p o in t­
m ent on th e n ational commission.

New Management

M anagem ent of th e F a rm e rs State
B ank of W all has been tak en over by
the directors of th e U nderw ood State
B ank, w hose stockholders recen tly
com pleted th e p u rchase of th e stock
of th e form er bank.
Leonel Jensen, w ho has been cash­
New Bank
G.
L. H icks recen tly m oved into his ier of th e b an k for th e p ast ten years,
re b u ilt b an k b uilding in Java, w hich will discontinue his services N ovem ­
had been u n d e r constru ctio n for some ber 1st.
The U nderw ood and W all banks will
tim e. T he building w as purch ased
about a y e a r ago and m oved to th e continue as sep arate and independent

A class of ban k ers of so u th eastern
South D akota has been organized in
Y ankton and w ill take its first in ­
stru ctio n s u n d er an educational p ro ­
gram organized by th e A m erican In ­
stitu te of Banking, as a p a rt of th e
A m erican B anking A ssociation, w ith
h ead q u arters in New York.
This class, w hich is m ade up of
b ankers from ten tow ns, m et recently
for the first tim e and organized in
the directo rs’ room of th e A m erican
State B ank at Y ankton, and it is in
th is room th a t classes w ill be held
w eekly on T hursdays u n til th e course
is completed.
T here are tw en ty stu d en ts in the
class, all engaged in th e banking busi­
ness in Y ankton, Tabor, Gayville,
Irene, W akonda, Viborg, Alcester, Cen­
terville, V erm illion and Scotland, and
additions are expected to m ake it
to tal thirty-five. The class w ill be
know n as th e S outheastern South Da­
kota Group.

In Ipswich Bank
W ayne O. Davies of A berdeen has
accepted a position in th e Ipsw ich
S tate Bank. Mr. Davies is th e son of
Jim Davies of A berdeen, a form er resi­
dent of E dm unds county.
W ayne O. Davies w as educated in
the schools of A berdeen and th e N o rth ­
ern States T eachers College. D uring
the p ast tw o y ears he w as em ployed
in th e A berdeen N ational Bank.

In Belle Fourche Office
W. B. Penfold, vice p resid en t an d
m anager, announces th a t C arroll Malvin has been appointed to tak e th e
position of R. R. B ernard in th e Belle
F ourche office of th e F irs t N ational
B ank of th e Black Hills. R eplacing
Mr. M alvin in th e bookkeeping de­
p artm en t for an indefinite period of
time, is W illiam Roesler, w ho for the
past th ree years has been em ployed in
the Lead office of th e F irst N ational
B ank of th e Black Hills.

In Eureka Bank
E ugene H errboldt, Ipsw ich, becam e
affiliated w ith th e E u rek a State B ank
and assum ed his duties.
A n other
change occurring in th e personnel of
the E u rek a in stitu tio n w as th e resig­
nation of E. G. N euharth, who, because
of ill health, w ill move w ith his fam ily
to Florida.
Mr. H errboldt, th e new officer, has
been in th e b anking business for the
past year and a half and p rio r to th a t
Northwestern Banker Novem ber 1940


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

56

SOUTH
period w as associated w ith th e F e d ­
eral In term ed iate C redit B ank at St.
Paul, M innesota.

(C ontinued from page 52)
F ritz F ritzson, vice p resid en t and

cashier of th e F irs t N ational B ank of
Sioux City, atten d ed th e N ebraska
m eeting and also enjoyed a v isit w ith
his son Gerald, w ho is th is y e a r a
ju n io r a t th e U n iv ersity of N ebraska.
F ritz w as looking fo rw ard to a tte n d ­
ing th e N ebraska-M issouri football

TO

BASI C

NEWS

gam e, w hich w as to be his first a t­
tendance at a big league football event.
Dr. P aul F. Cadman, econom ist of
th e A m erican B ankers A ssociation,
voiced th e follow ing p e rtin e n t points:
“W hat th is co u n try needs m ost is to
learn how to stand on its ow n feet.
“W e do n o thing to advance our lib­
erties, b u t m uch to re stric t th e m ”.
“L abor has received its death blow
th ro u g h collective b argaining and the
W ages and H our law ”.
“If th e nex t few y ears are to be
know n as the ‘R oaring F o rtie s’, p e r­
haps w h at has gone before m ay be re ­
ferred to as th e ‘D irty T h irtie s’.”

THE N E B R A S K A
C O N V E N T IO N

CLOSE

DAKOTA

C H I C A G O ’S

INDUSTRIES

• Steel — one o f C h ica g o ’s b asic in d u strie s - has be­
com e

th e

m o st

im p o rta n t

single

p ro d u c t in

our

n atio n al life. Always th e k ey sto n e of o ur tra n s p o rta ­
tio n a n d co m m u n ica tio n in d u strie s . . . a n d th e tool
w ith

w hich

farm a n d fa cto ry have fashioned our

s ta n d a rd s of living . . . it is to d ay , also, th e m easure
of o u r security. As one of C h ic a g o ’s m ajor banks,
th e

A m erican

N a tio n a l w elcom es

th e

o p p o rtu n ity

to place its experience in this b asic in d u strial field
a t th e co m m an d of banks in o th e r areas th ro u g h
th e m ed iu m of its co m p lete c o rre sp o n d e n t facilities.

AMERICAN

NATIONAL BANK

AND TRUST CO M PAN Y

LA

S A L L E

S T R E E T

AT

W A S H I N G T O N

M e m ber F ederal D eposit Insurance C o rporation

C O M M E R C I A L

Northwestern Banker

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Federal Reserve Bank of St. Louis

•

C H E C K I N G

Novem ber Î9W

•

S A V I N G S

•

TRUSTS

“Our p resen t trag ed y is not our in ­
difference to our political destiny—it
is the fact th a t we have forgotten the
im portance of m ain tain in g checks and
balances on our G overnm ent”.
“U nder every W PA sign should be
w ritte n —‘Paid for by th e People W ho
W ork and Save’.”
Coming up from K ansas to address
N ebraska bankers, H. A. Bryant, presi­
den t of th e P arsons Com m ercial B ank
told his listen ers it w as high tim e the
b an k er came out of th e dog-house and
told his com m unity w h a t the A m eri­
can system of b ankin g really is and
w h at it stands for. A m erica, he said,
needs to be sold on A m ericanism .
B ankers them selves know th e ir own
business w ill be ru in ed unless it can
operate a t a profit—b u t th ey also m ust
tell th e ir custom ers, th e ir com m ercial
accounts, th a t no business can survive
u n d er an y th in g b u t a profit-m aking
basis. Mr. B ry an t suggested th is
slogan—“A custom er a day w ill keep
C om m unism aw ay”.
Am ong resolutions adopted by the
convention w ere th e following:
W ith a prelude lam enting th e fact
th a t th e federal g overnm ent is launch­
ing its n ational defense program at
a tim e w hen th e n ational debt is al­
read y a t a new high, th e com m ittee
recom m ended th a t “every considera­
tion of p ru d e n t fiscal policy should
lead us to finance our defense efforts
as far as possible th ro u g h th e direct
use of b an k credit,” th a t increases in
th e federal debt be held to a m inim um ,
th a t civil expenditures of governm ent
be held dow n and th a t a larger por­
tion of th e defense program should be
paid from c u rre n t tax es th a n is now
proposed. T he com m ittee also recom ­
m ended w atchfulness over state and
m unicipal expenditures.
An am bitious legislative program ,
including th e follow ing activities, w as
recom m ended:
1. C ontinued opposition to th e Stea­
gall bill, now before congress.
2. S upport of P atm an bill now be­
fore congress and w hich w ould p re ­
v en t fu rth e r extension of b ranch
banking.
3. Support of C urtis bill recom ­
m ended “because lim itations on th e
aggregate am ount of real estate loans
w hich a N ational b an k m ay hold
should n ot apply to loans in su red u n ­
der Title 2 of th e national housing act.
4. Opposition recom m ended to any
legislation w hich seeks to re tire th e
banks from any po rtio n of th e loan
field, p a rticu larly th e Consum er Credit
and Sm all L oan Field.

57

Banker Honored
D onnellson business and profession­
al m en and o ther friends of George W.
M attern, joined in w ishing him “m any
happy re tu rn s of th e day” last m onth,
w hen he observed his eighty-third
b irth d ay an n iversary. Mr. M attern,
presid en t of th e Citizens S tate Bank,
received tw o large bouquets of flowers,
one from th e b ank em ployes and the
o ther from local business m en, as w ell
as m any individual gifts.

IO W A NEWS
H . R. YOUNG
P re s id e n t
A rlin g to n

Sells Interest
M arvin L eritz h as sold his in te re st
in th e S ecurity S tate B ank, Shell Rock,
to W. S. R obinson of L ake City, Iowa.
U nder th e new m anagem ent, J. F.
Iw e rt w ill be cashier an d F ran cis Rob­
inson assistan t cashier.

Dellco Bloem Dies
Delko Bloem, 52, a vice p resid en t of
th e S ecurity N ational B ank, Sioux
City, died recen tly a fte r he w as found
unconscious in th e k itch en of his
hom e.
The exact cause of d eath w as not
d eterm in ed b u t tw o th eo ries w ere ad ­
vanced—h e a rt disease and asp h y x ia­
tio n by escaping illu m in atin g gas. A
police surgeon, w ho w as called, said
both m ay have co n trib u ted to cause
death.
The fam ily physician, w ho stated
he believed d eath resu lted from a
h e a rt m alady, said th e b an k official
had been receiving tre a tm e n t for h e a rt
disease for some tim e. T he physician
said he urg ed Mr. Bloem to re tire
from business m ore th a n a y e a r ago.

In Henderson Office
Mrs. P au lin e Steiner, w ho h as a s­
sisted at th e M acedonia office of th e
S tate Savings B ank of Council Bluffs
th e p ast year, w en t to H enderson
O ctober 10, w here she w ill have charge
of th e H enderson office, succeeding C.
H. Amick. A rline H arb o r of H en d er­
son w ill assist a t th e office here. Mr.
Jo n es w ill oversee th e d uties a t th e
tw o banks.

County Meeting
The Calhoun C ounty B an k ers Asso­
ciation held a m eeting recen tly in
Rockw ell City. Sixteen b a n k ers from
over th e county w ere in attendance.
A fter a d in n e r th e m eeting w as called
to order by P re sid e n t G. L. Scoles of
M anson. T he w age and h o u r law, as
it applies to banks, w as discussed a t
length.
Upon recom m endation, by th e nom ­
in atin g com m ittee, th e p re se n t offi-

FRANK W A RN ER
S ecretary
Des M oines

cers w ere reelected for an o th er year:
G. L. Scoles of M anson, president;
F ra n k L. Sm ith of L ohrville, vice p res­
id ent and Clyde M. M um m ert of Farnham ville, secretary and treasu rer.

Banker Dies
Ole C. Stangeland, pro m in en t farm ­
er of th e Stavanger neighborhood and
p resid en t of th e Com m ercial State
B ank of M arshalltow n died recently
a fter an illness of tw o w eeks. The
cause of death w as acute m yocardial
failure.

New Office rs
H.
J. Buell, of the F arm ers N ational
Bank, W ebster City, w as elected pres­
ident of th e H am ilton County B ankers
association a t a recen t m eeting. He
succeeds E. J. Johnson, of th e S tra t­
ford F a rm e rs Savings Bank.
D inner w as served preceding th e
business session. O ther officers are:
Vice presid en t—F ra n k Counsell, of
th e W illiam s Savings Bank.
S ecretary -treasu rer — Gus A aslund,
of th e R andall State Bank.
R ussell L. Daniels, of th e U nited
States secret service, of Omaha, w as
guest speaker. He talked on “C ounter­
feit M oney” and show ed m oving pic­
tures.

Meet in Blairstown
T he m em bers of th e B enton County
B ankers A ssociation enjoyed a steak
d in n er in B lairstow n recently. F. O.
M ekota, a ssistan t cashier of th e Peo­
p le’s Savings B ank at Cedar Rapids,
acted as chief steak chef.
G uests w ere from Cedar Rapids,
Victor, Chelsea, H artw ick, M arengo
and from all th e banks of B enton coun­
ty, also A. T. D onhowe of Des Moines.
A ro u n d table discussion followed th e
d in n er and a general good tim e w as
h ad by all.

Title Loans
T he W aln u t S tate B ank has been
approved by th e F ed eral H ousing Ad­
m in istratio n as m ortgagees u n d er
title tw o of th e F ed eral H ousing Act.
In keeping ab reast w ith tim es the
b an k is now in a position to m ake all
kinds of m odernization loans as w ell
as loans for new construction and in ­
vites th e public to avail them selves of
th is service.

Dies in Kingsley
Jo h n B. Phelps, w ell know n K ings­
ley banker, died last m onth following
a h e a rt attack.
B orn in New Y ork state, Mr. Phelps
cam e to P ly m o u th county w ith his
p a ren ts w hen a boy. He h ad been in
th e b an king business 50 y ears a t th e
tim e of his death. H e w as a m em ber
of th e M ethodist ch urch and of K ings­
ley lodge A. F. & A. M.

W hen Charley W atts, cashier of the
Com m ercial State Bank, Pocahontas,
takes up his saw and goes into action,
th e saw dust really flies. The N o r t h ­
w e s t e r n B a n k e r cam eram an found him
like you see him above, w here he is
helping to build a 4-H Club stru ctu re
in his com m unity. A nd a nice b it of
public relations w ork on th e p a rt of
the bank, we think.

Northwestern Banker

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

Novem ber Í9M

F I F T H AVENUE ON
I o w a ’s G r e a t R e t a i l B u s i n e s s

HAl I J p i
PA

b p e r L e f t : In the la rg e r c it ie s of Io w a are
[me o f the n a tio n ’ s b e s t dep artm en t sto res,
b p e r R ig h t : M od ern g ro c e ry sto re s— m ore
[an 6,000 o f them — ca te r to Io w a a p p etite s,
light C e n te r : M en can b u y sm art, n a tio n a lly
pown c lo th in g in a lm o st a n y tow n in the
ate. L o w e r L e f t : F ro m s ilk hose to hardlare, e v e r y to w n h as good sto res.
Low er
lig h t: M od ern re t a ilin g tu rn s e v e r y M a in
str e e t into a v e r it a b le F ift h aven ue.


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Federal Reserve Bank of St. Louis

M A I N

ST .

O n e o f th e b ig g e s t f a c to r s in t h e d e v e l o p m e n t o f th e A m e r ­
ic a n w a y o f l i v i n g h a s b e e n t h e p r o g r e s s o f o u r s y s te m o f w h o l e ­
sa le a n d r e ta il d i s t r i b u t i o n — a s y s te m u n p a r a l le l e d in t h e w o r l d .
T o d a y , in e v e n t h e s m a lle s t t o w n s a n d v illa g e s s m a r tly m o d e r n
r e ta il s to re s s u p p ly t h e i r c u s to m e r s w i t h t h e s a m e f a s h io n a b le
c lo th e s — t h e s a m e f o o d d e lic a c ie s — t h e s a m e m o d e r n f u r n i t u r e
t h a t is a v a ila b le o n N e w Y o r k ’s F i f t h A v e n u e .
A n d I o w a , p r i m a r i l y a n a g r i c u l t u r a l s ta te , w i t h a lm o s t h a lf
o f its p o p u l a t i o n

o n f a r m s , a n d w e ll o v e r h a l f in w h a t t h e

c e n s u s b u r e a u c la ss ifie s a s r u r a l , h a s b e e n o n e o f th e c h ie f b e n e ­
fic ia rie s o f t h is d e v e l o p m e n t .
M o s t r e c e n t f i g u r e s ( 1 9 4 0 C e n s u s f ig u r e s a r e n o t y e t a v a il­
a b le ) s h o w t h a t t h e r e a r e 3 8 ,9 7 9 r e ta il s to re s in I o w a , d o i n g
a n a n n u a l r e ta il b u s in e s s a p p r o a c h i n g t h r e e q u a r t e r s o f a b illio n
d o lla r s .

3 5 ,3 1 4

a re

in d e p e n d e n t,

p ro p rie to r-o p e ra te d

s to re s

d o i n g 7 9 .2 p e r c e n t o f t h e t o ta l r e ta il b u s in e s s . T h e y h a v e m o r e
th a n

3 7 , 0 0 0 a c tiv e p r o p r i e t o r s a n d

th a n

5 5 ,0 0 0 f u ll a n d p a r t t i m e e m p lo y e s w i t h a p a y r o ll, e x ­

firm

m e m b e rs a n d

m o re

c lu s iv e o f th e p r o p r i e t o r s a m o u n t i n g to m o r e t h a n $ 4 0 ,0 0 0 ,0 0 0 .
P r o p r i e t o r s in c o m e w o u l d a t le a s t e q u a l t h a t f ig u r e .
C h a in

o p e r a t o r s in

d o i n g a p p r o x im a t e ly
p a y in g a p p r o x im a t e ly
$ 1 2 , 0 0 0 ,0 0 0 .

th e

s ta te

h a d m o re th a n

2 ,0 0 0

sto re s,

1 7 .7 p e r c e n t o f t h e r e ta il b u s in e s s , a n d
1 5 ,0 0 0 e m p lo y e s s a la r ie s t o t a l i n g a b o u t

A p p ro x im a te ly

1 ,5 0 0 o t h e r r e ta il u n i t s

d e p a r t m e n t s , c o m m is s a r ie s a n d

th e l i k e )

(le a se d

s e llin g a b o u t 3 p e r

c e n t o f t h e t o ta l v o l u m e , p r o v i d e e m p l o y m e n t f o r a p p r o x im a t e ly
2 ,5 0 0 p e o p le , p a y i n g s a la rie s a b o v e $ 2 ,0 0 0 ,0 0 0 .
R e ta il a n d

w h o le s a le

la r g e s t s in g le i n d u s t r ie s .
th a n

$ 1 2 0 , 0 0 0 ,0 0 0

t im e

r e ta il

Io w a

to w n s

s to re
and

d is trib u tio n

m ake

up

o n e o f I o w a ’s

N e a r l y 1 3 0 ,0 0 0 I o w a n s r e c e iv e m o r e

a n n u a lly

e m p lo y m e n t
v illa g e s

in

s a la r ie s f r o m
and

depend

o p e r a t io n .
a lm o s t

p a rt a n d

fu ll­

H u n d re d s

e n tir e ly

fo r

of

th e ir

e x is te n c e u p o n r e ta il b u s in e s s .
T h r o u g h its g r e a t s y s te m o f r e ta il i n g , I o w a a c tu a l l y e n jo y s
F i f t h A v e n u e o n M a i n S tr e e t.

B a n k e rs T r u s t C o m p a n y h a s a b ro a d u n d e r s ta n d in g o f b u s i­
n e ss p r o b l e m s w h i c h h a s m a d e its f in a n c ia l s e rv ic e i n v a l u a b le
to m a n y r e ta il e s t a b l i s h m e n t s in D e s M o in e s .

B a n k ers T ru s t

a ls o h a s a b r o a d v ie w o f t h e p r o b l e m s o f t h e b a n k e r s in s m a lle r
I o w a to w n s , o n e r e a s o n so m a n y I o w a b a n k s h a v e n a m e d B a n k ­
e rs T r u s t t h e i r D e s M o in e s C o r r e s p o n d e n t .

BANKERS TRUST
6th and Locust Streets i ^/ \ \ 1 I ) A
\
Des Moines, Iowa v d V_>/ I V JL JL 1 m . T N| X
Member Federal D eposit Insurance Corporation


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Federal Reserve Bank of St. Louis

Member Federal Reserve System

60

• I O W A
Retired Banker Dies
A fter spending a m o n th for tr e a t­
m ent for a h e a rt ailm ent, R obert E.
Raines, 81, p ro m in en t re tire d banker,
died recen tly in Independence.
F o r th e last 60 y ears he had been
identified w ith th e social, m usical, fi­
nancial and religious life of th e com ­
m unity.
D uring his life he ta u g h t school, w as
a n ew spaper rep o rter, lum berm an,
dep u ty clerk of courts, and for over 50
years w as connected w ith th e F irs t
N ational B ank in vario u s capacities

NEWS

•

and w as presid en t of th a t in stitu tio n
w hen he re tire d at th e tim e th e b ank
was m erged w ith an o th er b an k here
in 1928.

Depository Service
A n ig h t receiving safe has been in ­
stalled by th e F a rm e rs and M erchants
Savings Bank, B urlington, th u s p ro ­
viding a 24-hour service to depositors.
The new service p erm its deposits a t
th e b ank at any tim e, day or night,
as w ell as over w eekends and on hol­
idays. The depository opening is on

T hird street, n ear th e corner. It is
so constructed th a t an y bags of m oney
left th ere cannot be rem oved from
the outside and only from the inside
by bank officials.

Changes Hours
B eginning October 24, the F arm ers
Savings Bank, Stratford, closed an
ho u r earlier th a n in the past. In order
to com ply w ith th e w age and h o u r
law th e b ank has announced th a t it
w ill open for business each w eek day
m orning a t 9 o’clock, close a t 12 for
an ho u r at noon, open again a t 1
o’clock and close at 3 o’clock. The
form er closing ho u r w as 4 o’clock.

Wheelock W ith
Security, Sioux City
F R O M many years of correspondent bank ex­
perience, the F irst National Bank in Sioux City
knows how to help bankers solve their daily problems.
W henever unusual situations arise, our clients know
they will command the sympathetic attention of the
officers of this bank.
T ry this bank for your commercial, livestock and
grain items in Sioux City.

B.
M. W heelock of M apleton, Iowa,
has been elected vice p resid en t of th e
Security N ational Bank, it w as an ­
nounced by C. R. Gossett, president
of the Sioux City in stitution. Mr.
W heelock has resigned as vice presi­
dent and cashier of th e F irs t State
B ank at M apleton in order to accept
th e Sioux City post. He w ill begin his
duties th ere N ovem ber 1.
Mr. G ossett said Mr. W heelock will
be in charge of th e Security N ational’s

O F F IC E R S
A . S. H A N F O R D
P re s id e n t

J . R. G R A N IN G
A s s is t a n t C a sh ie r

A. G. SA M
V ic e P re s id e n t

E . A. JO H N S O N
A s s is ta n t C a sh ier

J. P. H A IN E R
V ic e P re s id e n t

J. T. G R A N T
A s s is ta n t C a sh ier

F R I T Z F R I T Z S O N , V ic e P re s id e n t & C a sh ier

B. M. W H E E L O C K

correspondent b an k division.
Mr.
W heelock spent nine years at the F irs t
State B ank at M apleton. P rior to th a t
he w as a ssistan t cashier of th e U nion
N ational B ank a t Ames.
“Mr. W heelock comes w ith a w ealth
of experience in th e co u n try banking
field,” said Mr. Gossett, “an d is ex­
cellently qualified to handle our grow ­
ing business w ith
correspondent
banks.”
Northwestern Banker Novem ber 19^0

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Federal Reserve Bank of St. Louis

61
•

I O W A

N E W S

•
its m eeting at Chelsea. The Chelsea
Savings B ank e n tertain ed the bankers.
O ther officers elected w ere Otto
Moeller, T raer, vice president; Ray
Adair, Tam a, secretary. It w as th e
last m eeting of th e fiscal year.
M. W. H yland, T raer, w as th e p rin ­
cipal speaker. Special guests w ere re ­
presen tativ es from the M erchants N a­
tional Bank, Cedar Rapids; B ankers
T ru st Company, C entral N ational
Bank, and Iow a N ational Bank, all of
Des Moines; and Citizens N ational
Bank, of Belle Plaine.
T he m eeting w as one of th e best

sen tativ es of th e B u rlington Savings
B ank, th e F arm ers & M erchants Sav­
ings B ank and th e N ational B ank of
B urlington. B eginning on October 28,
th e banks w ere open daily from 9:30
a. m. u n til 2:30 p. m., except on W ed­
nesday w hen the hours are from 9:30
a. m. to 12 noon.

Tama Election
The T am a County B ankers associa­
tion unanim ously elected Asa Thom as,
cashier of th e N ational B ank of Tol­
edo, presid en t of th e association at

C.
F. W eaver, m an ag er of th e public
relatio n s d e p a rtm e n t of th e U nited
H om e B ank, M ason City, ap p aren tly
know s his frogs. Some of those pic­
tu re d above m easu re sixteen inches in
length, and w ere caught n e a r N orfolk,
N ebraska, in th e E lk h o rn R iver b o t­
tom s.

Heads Page Bankers
C. E. B radley of C larinda w as elected
p resid en t of th e Page C ounty B ankers
A ssociation at a m eeting held last
m onth. E. C. F ish b au g h of S hen an ­
doah w as nam ed vice p resid en t and
Jo h n Sw anson of C larinda w as elected
secretary -treasu rer.
V arious topics w ere discussed in ­
cluding th e w age and h o u r act. The
b an k ers w en t on record as favoring
th e su rp lu s com m odity act.
T h ere w ere 27 present.

Ladies Meet
L adies of th e Des M oines B an k ers
club m et for a 2:30 p. m. luncheon
T h u rsd ay at “T errace H ill,” th e G rover
C. H ubbell hom e, 2300 G rand avenue,
last m onth.
H ostesses for th e day w ere Mrs.
S herm an Fow ler, chairm an, and Mrs.
S. C. Pidgeon and Mrs. H arold Howe.
Mrs. A lb ert J. R obertson w as ch a ir­
m an of th e program .

Shorter Hours
Because of provisions of th e w age
and h o u r law decreeing a 40-hour w ork
week, it is necessary to sh o rte n th e
h o u rs th a t b an k s w ill be open to th e
public, it w as announced by repre-

In th is c o m p o s ite p h o to is s h o w n " T h e W h ite O x T h a t T r a v e lle d ," f a m o u s S h o r th o r n s te e r b e f o r e
th e tu r n of th e c e n tu r y C O M PA R ED to a G r a n d C h a m p io n of th e s a m e b r e e d in r e c e n t y e a r s .
W h a t a s w ift e v o lu tio n h a s t a k e n p la c e ! W h a t a tr ib u te to th e c a ttl e b r e e d e r s ' skill!

S T Y L E S IN B E E V E S
Fifty Y ears Ago . . . . and Now
In 1890, p ro d u c ers of b e e f ca ttle a im e d d ire c tly
at one g o a l— q u an tity . In 1940, the a im is
q u a lity .
H er m a je s ty , the A m e ric a n h o u se ­
w ife , is r e s p o n sib le for th is a m a z in g c h a n g e .
Sh e h a s co n sisten tly d e m a n d e d sm a lle r , ch o ice r
cuts.
T hus, the prim e b a b y b e e f of to d a y
d re ss e s out a la r g e r p e rc e n ta g e of ch o ice cu ts;
is g ro w n w ith g r e a t effic ie n c y in 12 to 18
m onths a n d re p re se n ts a q u ick tu rn o v e r of in ­
vestm en t. The g ro w th y ste e r of fifty y e a r s a g o
w a s m a rk eted at th ree to fo u r y e a r s of a g e
a n d w e ig h e d 1,500 p o u n d s to a fu ll ton!
The In tern a tio n a l— p re m ier liv e stock s h o w of
the W orld — is a n a d v a n c e sh o w in g of " s t y l e s "

of m ea t a n im a ls. The ty p e s that w in the co v e te d
b lu e rib b o n s a re reflected w ith in a fe w y e a r s in
th o u san d s of farm h erd s in A m e ric a . F o r this
r e a so n a le rt liv e sto ck p ro d u c ers a n d b re e d e rs
s tu d y the w in n e r s ; u se them to g u id e this w o rk .
A n d b a n k e r s w ith im portan t in terests in the liv e
stock fie ld ca n find m uch of p ra c tic a l v a lu e a s
w e ll a s g o o d en tertain m en t at the In tern a tio n a l.
The D ro v ers B a n k s, a g a in this y e a r , join w ith
the M a n a g e m e n t of the In tern a tio n a l in cor­
d ia lly in v itin g b a n k e r s , th eir fa m ilie s a n d frien d s
to v isit this g r e a t s h o w — N o v em b er 30 to D e­
ce m b er 7. A s u s u a l, w e h a v e m a d e s p e c ia l
p la n s for v isitin g b a n k e rs d u rin g this g a la w e e k .

M e m b e rs, F e d e ra l D e p o sit In s u ra n c e C orporation

DROVERS NATIONAL BANN
DROVERS TRUST & SAVINGS BANK
U N I O N

S T O C K

Y A R D S ,

C H I C A G O

................................................................................

Northwestern Banker

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Federal Reserve Bank of St. Louis

_______I
.....1

Novem ber 19¥)

62

•
of th e year. N early all b anks in th e
county w ere represented.

4-H Calves
Sixty-one head of calves w ere dis­
trib u te d October 12 to 4-H club boys
and girls of E m m et county. T hese
w ere the calves purch ased in w estern
N ebraska by th e E m m et C ounty State
Bank. T here w ere several boys w ho
d id n ’t get th e re u n til late, and be­
cause of th e dem and for these calves,
w ere unable to get one.
Mr. Vallie of th e E m m et C ounty
State B ank, th ro u g h th e cooperation
of Jo h n E. Greig, also purch ased fif­
teen head of p u reb red sh o rth o rn
steer calves. T hese calves w ere ob-

I O W A

N EW S

•

tained th ro u g h th e County A gent at
Pipestone, M innesota.
T hey come
from th e K ruse and K ruse ran ch in
th e so u th w estern corner of N ebraska.

Suit Filed
C laim ing th a t federal incom e and
excess profit taxes paid by th e C entral
State B ank of M uscatine in 1937, 1938
and 1939 w ere erroneously and il­
legally collected and th a t th e ban k is
en titled to a refund, A tto rn ey R obert
S. Jackson has sta rte d suits in th e
federal court, D avenport, for $5,895.39
ag ainst C harles D. H uston, Des Moines,
as an individual and as collector for
in te rn al revenue in Iowa.
The claim is m ade th a t incom e p ay­

able to depositors tru s ts does not con­
stitu te taxable income, b u t th a t such
earnings and incom e w ere im pressed
w ith a specific and definite lien for
benefit of beneficiaries. The petition
states th a t th e “plaintiff becam e m ere­
ly a conduit th ro u g h w hich the earn ­
ings and incom e passed and w as not
taxable ag ain st th e b an k .”
The b ank paid taxes on these de­
positors tru s t funds am ounting to
$2,761.47 in 1937; $2,486.56 in 1938 and
$647.36 in 1938. T he sum of $5,895.39
is asked w ith in te re st from tim e of
paym ents.
The petition fu rth e r states th a t m ore
th a n six m onths ago it filed a claim
for a refu n d w ith Collector H uston
b ut th a t no th in g has been heard from
the claim.

Assistant Cashier

PUTTING NEW VITALITY
INTO CORRESPONDENT
RELATIONSHIPS
A correspondent relationship w ith The Northern Trust
Company is live . . . active . . . vital. For into it this
institution pours the wide experience of more than
fifty years. Facilities are complete and modern in every
respect. Everywhere and always there is an evident
willingness on the part of the personnel . . . a sincere
desire to serve. A correspondent connection here helps
round out the usefulness of a local bank in a way th at
makes for increased leadership. Your inquiry is invited.

THE N O RTH ERN
TRUST COMPANY
50

S O U T H

LA

SALLE

STREET,

C H IC A G O

M em ber F ederal D eposit Insurance Corporation

The directors of th e Dallas C ounty
State Bank, Adel, announced th a t
Lloyd Bock of Dallas C enter has been
elected a ssistan t cashier of the bank.
Mr. Bock has been au d ito r for the
B renton in terests in Dallas C enter for
th e p ast several y ears and w ill con­
tinue in th a t capacity. Most of his
tim e w ill be sp en t a t th e b ank in Adel;
how ever, th e fam ily w ill continue to
reside in D allas C enter tem porarily.
Ja y H am iel, form erly a ssistan t cash­
ier of th e Dallas County State Bank,
has joined th e staff of th e B renton
State B ank in Dallas C enter and com­
m enced his new duties th e re N ovem ­
b er 1.

Meet in Ute
T he M onona County B ankers Asso­
ciation m et in U te T hursday, October
10, w ith P resid en t P ra tt presiding.
T he ban q u et w as served by the Leg­
ion A uxiliary. A fter d in n er round
table discussions w ere held.
Those from U te atten d in g w ere Mr.
and Mrs. M. B. Riddle, Mr. and Mrs.
F re d M ahler, Mr. and Mrs. W illiam
Tem ple, Mr. and Mrs. Orval Spahn.
N early all tow ns in th e county w ere
represented.

Hours Shortened
H. O. W ebb, cashier of th e Sheffield
Savings Bank, has announced th a t a
reduction in ban k in g ho u rs w ould go
into effect October 24. B eginning on
th a t date th e local b ank w as open
from 9 to 12 o’clock in th e m orning
YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE, VAU LT AND
TIMELOCK EXPERTS

F. E. DAVENPORT & CO.
OM AHA

Northwestern Banker Novem ber 19k0

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

63

The

u p p er

p ictu re

above

show s

T hom sen, Jr., cashier of th e
Teeds Grove Savings Bank; B en Tietjen s, a ssista n t cashier, and o th ers of
John

Mr. T ho m sen ’s h elp ers in th e bank.
Below is p ictu red a p a rt of th e fine
h e rd of H ereford cattle belonging to
Mr. Thom sen.

W A S IT ?
W a s yo u r h a rv e st of n ew

an d from 1 to 2:30 o’clock in th e a fte r­
noon, six days a week.
T he red u ctio n is m ade n ecessary by
provisions of th e natio n al w age and
h o u r law w hich req u ires a red u ctio n
in w ork in g ho u rs from 42 to 40 ho u rs
p e r w eek, effective nex t T hursday.

as

you

had

a n tic ip a te d ?

p r o d u c t iv e n e s s ?
and

h e lp

you

b u s in e s s a s
Or

d id

b o u n t if u l t h is y e a r

c o m p e t i t io n

cut

your

O u r c o n t r a c t w i l l s a v e t h a t lo s s f o r y o u

p ro d u ce

a

bum per

cro p

of

new

b u s in e s s .

Study Group
Tw enty-tw o b an k ers and b an k em ­
ployes from nine cen tral Iow a tow ns
signed up for the C entral Iow a B an k ­
ers Study group w hich w ill m eet
w eekly in M arshalltow n for 21 w eeks,
an d it is expected th e final enro llm en t
w ill reach 25. L ast y e a r 19 w ere en ­
rolled.
The group held its first m eeting fol­
low ing a d in n er a t B arlow ’s cafe and
w ill m eet each W ednesday evening
h e re a fter at th e C entral Iow a B usiness
college for tw o h o u rs of stu d y each
w eek for 21 w eeks. T his is th e th ird
year th is group has m et in M arshall­
tow n an d th is y e a r th e b a n k ers are
tak in g up th e stu d y of business law.
The stu d y group is sponsored b y th e
A m erican In stitu te of B anking. B an k ­
ers and b an k em ployes p articip atin g
are from G rundy Center, E ldora, Garwin, Beam an, U nion, W h itten , Tam a,
B ax ter and M arshalltow n.

Legal Reserve
Non-Assessabie
fire and Auto Policies

W ESTERN M UTUAL
FIRE INSURANCE COMPANY
DES MOINES

O ver a

Third o f a Century o f Safety and
Service With Savings

Northwestern Banker Novem ber 1940

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

64

IO W A NEWS
FR O M HERE A N D THERE
By J . A. Sarazen, Associate Editor
J. A. S A R A Z E N

N A m erican In stitu te of B anking
stu d y group has been organized
at P erry , and th e first class w as held
October 16th.
C harles Johnson, cashier, F irs t N a­
tional Bank, P erry , is th e in stru cto r.
Lloyd Bock, a ssista n t cashier, Dallas
County State B ank, Adel, w as elected
president, and Miss E s th e r Seem an,
bookkeeper, P e rry S tate B ank, w as
elected secretary -treasu rer.
T h irty -th ree m em bers have been en ­
rolled, m aking th is class one of the
largest study groups in th e state.
Those enrolled are as follows:
G uinevere B arth, A nsel Bilney, Don­
ald S. C arter, P. H. G raney, M ary
Reel, H. V. Sm ith, M ary Jan e S tew art,
all of F irs t N ational B ank, P erry .
Amos A. Crellin, E sth e r Seeman,
B lanche Stevens and M orris J. T em ­

A

J.
H ow ard O rth, economics in stru c ­
tor, ju n io r high school, F o rt Dodge,
is the in stru c to r of th e F o rt Dodge
A. I. B. class this year. T here are 16
in th e class, several not atten d in g th is
year, as th ey have previously had
economics.
Dale E. W aldron, president, F irs t
N ational Bank, Glidden, passed aw ay
at th e age of 73. He w as one of th e
oldest ban k ers in Iow a from th e point
of service in th e b anking business, h av ­
ing been connected w ith banking in ­
terests in Glidden for th e p ast 53
years.
D eath cam e suddenly from a h eart
attack w hile he w as seated at his desk
and discussing a business m a tte r w ith
W ilbur P o rter, cashier.
The board of directors w as to m eet
th e la tte r p a rt of October, w hen it w as
expected a new p resid en t w ill be
nam ed to succeed Mr. W aldron.

pleton, all of P e rry State Bank.
M. C. B arnett, G uthrie County State
Bank, G uthrie Center.
L. R. Bock, K a th ry n E b ert, L indley
Finch, C harles F lack (office) G ranger,
D orothy H elm ick, W illiam C. M ueller,
L. A. Schulte (office W oodw ard), M ath­
ias B. Schulte (office W oodw ard), P aul
M. Shain (office) W aukee, T hom as
T ierney (office W o o d w a r d ) , and
C hurchill W illiam s, all of B renton
State Bank, Dallas Center, an d Clark
Dies in Hudson
Bardole, F irs t N ational Bank, Rippey.
F rien d s of R. I. B ordner, cashier of
Dale McDowell and H. A. N orgren,
th e H udson State Bank, w ere shocked
R ippey Savings Bank, Rippey.
V elm a Bauer, G erald Clause, Della to learn of his recen t death, although
m ost knew of his critical illness. Mr.
F ra n k lin , D. L. N uckolls and Thelm a
R aver, all of Home S tate Bank, Jeffer­ B ordner passed aw ay afte r being in
a coma for 48 hours. His death w as
son.
D.
Neil B erry and R ussell Holt, Je f­ due to acute n ep h ritis and com plica­
tions of w hich he had been a sufferer
ferson State Bank, Jefferson.
for th e p ast six m onths. The fam ily
sp en t tw o w eeks in n o rth e rn M inne­
sota in A ugust, th in k in g th e change
w ould be beneficial b u t he soon grew
w orse after his re tu rn home.

o ffe r in g

Monthly Meetings
f r i e n d l y tfj^ C e lp fu l ^

e r v ic e

on y o u r C
T f)e s g f j \ £ ° i n e s b u s i n e s s

V a LLEY
SAVINGS BANK
DE S M O I N E S
Officers
President
Vice President
J. R . A s tle y , Cashier
E d w a r d P . K a u t z k y , Assistant Vice President
M a r v i n L . P a y n e , Assistant Cashier
F r a n k M . T h o m p s o n , Assistant Cashier
F re d e ric k

M . M o rris o n ,

W in f ie ld W . S c o tt,

M em ber F e d e ra l D eposit In su ra n c e Corporation

Northwestern Banker Novem ber 1940

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

The personnel of th e Ja sp e r County
Savings Bank, N ew ton, held th e ir first
m onthly get-together a t th e H otel
M aytag. The affair w as a din n er m eet­
ing.
B ank officials are prom oting th e
m onthly m eetings in order to convene
a t one tim e all those connected w ith
the b ank in o rder to discuss business
affairs of th e bank.
A bout 20 w ere present.
Succeeding m eetings are to be the
th ird F rid ay of th e m onth.

W . S. Short Honored
Some 80 bankers, m em bers of the
Sioux county ban k ers organization
and o thers from as far as Chicago,
Des Moines and Sioux City as w ell as
b ankers from Lyon, O’B rien and P ly­
m outh counties, m et recen tly in
Orange City, for an inform al social
evening. E. S. K iernan, cashier of
th e A lton Savings B ank and president
of th e county association presided.
T alks w ere given by E. Jones of Des
Moines, R obert H u n t of Chicago, Mr.
K islingbury of Paullina, Mr. Tool of

65

IO W A

NEWS

late E. H. M aytag, w ho had served in
th a t capacity for a n u m ber of years.
F re d M aytag II, son of Mr. Maytag,
was elected ch airm an of th e board of
directors.
E. H. Rich Dies
R obert E. Vance, vice presid en t of
E.
H. Rich, 91, dean of Iow a b ankers, th e b ank and priv ate secretary for
died recen tly in F o rt Dodge a fte r a Mr. M aytag, w as nam ed to th e board
several w eek s’ illness.
of directors to fill th e vacancy caused
H e had been a b n ak official 66 by Mr. M aytag’s death. Mr. M aytag
y ears and active in ban k in g a p p a r­ died a t his sum m er hom e a t Ceylon
en tly longer th a n an y Iow an. The
Court, Lake Geneva, W isconsin, on
Iow a B an k ers association at its re ­ Ju ly 20.
cen t state convention honored him as
M em bers of th e board of directors
one of its oldest m em bers.
now are L. B. M aytag of Colorado
Mr. R ich came to F o rt Dodge in
Springs, Colo., and F red M aytag II,
1874 and en tered th e em ploy of th e
F irs t N ational B ank as a bookkeeper.
H e becam e cashier of th e M erchants
N ational B ank in 1877 and w as an of­
ficial of F o rt Dodge b an k s for th e
n e x t half century. He w as for m any
y ears p resid en t of th e F o rt Dodge N a­
tio n al Bank.
A t th e tim e of his d eath he w as p re s­
id en t of th e Pocahontas, Iowa, State
B ank and a d irecto r of th e U nion State
B ank of R ockw ell City, Iowa.
LeM ars, Mr. Sibley of K ingsley and
com m ents w ere num ero u s from m em ­
bers of th e county group.

R ay O. Bailey, W. E. D enniston, Jo h n
E. Cross, W. N. E n y art, A. E. Hindorff,
D. W orm houdt and R obert E. Vance,
all of Newton.
A t the sam e tim e, F red M aytag II
w as also chosen ch airm an of the
board of directors of th e Kellogg Sav­
ings Bank, succeeding his fa th e r in
th a t office. Mr. Bailey is p resid en t of
the Kellogg bank.

County Meeting
T he m eeting of th e A dair-G uthrie
B ankers association w as held October
25 a t G uthrie Center. B ankers from

Study Class
Seven em ployes of th e Ja sp e r Coun­
ty Savings B ank in N ew ton have en ­
rolled in a w eekly b an k in g stu d y class
w hich held its first session of th e
w in te r m o n th s in th e G rinnell, Iowa,
S tate Bank.
S tu d en ts of the class are from b anks
of Pow eshiek, Ja sp e r and M arshall
counties. N ew ton p ersons enrolled
are George K ruse, p resid en t of th e
class group; B eulah Chollett, secretarytre a su re r, L. H. Macy, W. R. Quigley,
A rnold P eters, M ary Louise Moffitt
and E dw in Bailey.

i4L e t’§ Ask.
L iv e S to c k N a t io n a l”
F r o m th e n e a r l y 5 0 0 a g r i c u l t u r a l b a n k s f o r w h o m it s e rv e s
a s C h ic a g o c o r r e s p o n d e n t, L iv e S to c k N a tio n a l re c e iv e s m a n y
r e q u e s ts

Bailey Heads Bank
A t a special m eeting of th e board
of directors of th e Ja sp e r C ounty
Savings B ank last m onth, R ay O.
Bailey, vice president, w as elected
presid en t of th e b an k to succeed th e

fo r

in f o r m a t io n , c o u n s e l a n d

o u t- o f - th e - o r d in a r y

s e rv ic e s .
T h ese b a n k s

know t h a t L iv e S to c k N a tio n a l is b o th a b le

a n d w illin g to h e lp th e m . A b le b e c a u s e o f its 7 2 y e a r s e x p e r i­
e n c e , its e v e ry - d a y c o n ta c t, w ith a g r i c u lt u r e in a ll its p h a s e s .
W illin g b e c a u s e th is b a n k h a s a lw a y s m a i n ta i n e d a d ir e c t,
f r ie n d ly a n d n e ig h b o r ly w a y o f d o in g b u s in e s s .

F O R S A L E — B A N K IN C A L IF O R ­
N IA . 350 s h a r e s o f s to c k (c o n tro llin g
i n t e r e s t ) o f v e r y w e ll m a n a g e d b a n k f o r
s a le a t b o o k v a lu e . C a p ita l s e tu p $ 7 3 ,000. L o c a te d in fine c o u n tr y d i s t r i c t o f
N o r t h e r n C a lifo rn ia . D e p o s its $400,000.
N o o th e r b a n k in s a m e c o m m u n ity . A ll
lo a n s se c u re d . N o p u b lic m o n e y s . N o
r e a l la r g e in d iv id u a l a c c o u n t. N o i n t e r ­
e s t p a id on a n y d e p o s its e x c e p t s a v in g s .
B o n d s $130,000. B u ild in g , f u r n i t u r e a n d
f ix tu r e s c a r r ie d a t $23,000. C a sh $225,000. L o a n s $115,000. D e p o s its $430,000.
H a s p a id s m a ll d iv id e n d r e g u la r ly . C o n ­
t r o l c a n be t u r n e d o v e r im m e d ia te ly . Is
lo c a te d on h ig h w a y a n d s te a m r a ilr o a d .
A d d re s s S e rv ic e D e p a r tm e n t, C o a s t
B a n k e r, 255 C a lif o r n ia S t r e e t , S a n F r a n ­
cisco, C a lifo rn ia .

I f a g r i c u lt u r e r e q u i r e s y o u r a tt e n ti o n , to o , w h y n o t “ a sk
L iv e S to c k N a t i o n a l ” ? Y o u r in q u i r y c o n c e r n i n g th e

many

b e n e fits o f a c o r r e s p o n d e n t c o n n e c tio n is c o r d ia lly in v ite d .

L i v e S to ck .
National B c l l l k
UNION

M E M B E R

F E D E R A L

of Chicago

STO CK YARDS

D E P O S I T

I N S U R A N C E

C O R P O R A T I O N

N orthw estern Banker N ovem ber 1940

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

66

IO W A
Dallas and Shelby counties also a t­
tended. A 7 o’clock d in n er w as served
and a t th e m eeting th a t followed, E r ­
w in W. Jones, vice p resid en t of th e
Iowa-Des M oines N ational B ank &
T ru st Company, and W aldo Don C ar­
los, county a tto rn e y of A dair county,
w ere th e principal speakers.
A ro u n d table discussion followed
d u rin g w hich th e subjects of in te re st
paid on tim e and savings deposits,
com petition of o th er lending agencies,
and th e w age h o u r law w ere con­
sidered.
In te re stin g talk s w ere m ade by Dr.
R. C. N orm an, vice p resident, G uthrie
C ounty State B ank and by oth ers
present.
A t th e close of th e m eeting, Clyde
Rochholz, cashier, E xchange B ank,
Adair, w as elected p resident, J. E.
Howe, cashier, A dair C ounty B ank,
Greenfield, vice president; and Ja y W.
H em phill, a ssista n t cashier, F a rm e rs
State B ank, Yale, w as elected secre­
tary -treasu rer.

NEWS

First National, St. Louis

Craddick Returns

The F irs t N ational B ank of St. Louis
has announced th e pay m en t of a bal­
ance of $4,597,201.95 to the 3,500 hold­
ers of F irs t N ational Com pany P a rtic i­
pation Certificates. T his com pletes
th e p aym ent of th e full face value of
these obligations.
T his w as accom plished by th e ban k
in acknow ledgm ent of a m oral obliga­
tion and is quite a trib u te to th e m an ­
agem ent of th e in stitution.
A t the sam e tim e th e F irs t N ational
recen tly announced th a t th e total re ­
sources of th e in stitu tio n are at a new
all tim e high of m ore th a n $300,000,000.
T otal deposits are approxim ately $282,000,000, w hich is m ore th a n double its
deposits of M arch, 1933.
The F irst N ational B ank of St. Louis
now ran k s 29th am ong th e banks of
A m erica and is th e larg est N ational
b an k w est of th e M ississippi riv er h av ­
ing no branches.

H. B. Craddick, dean of ban k adver­
tisers and founder of Craddick Service,
has re tu rn e d to M inneapolis to become
active again in th e business he estab­
lished m any y ears ago. F o r the past
four y ears Mr. Craddick has been as­
sociated w ith R otary In tern atio n al in
Chicago in an executive capacity as
director of public relatio n s and pub­
licity for th a t organization. Now his
wide experience and counsel w ill again
be available to clients of Craddick
Service.

Correction
Northern Trust
W ith loans up 11 per cent on Sep­
tem b er 30 over th e Ju n e 30 figures,
The N o rth e rn T ru st Company, Chi­
cago, sta te m e n t gave evidence of c u r­
re n t dem and for com m ercial b an k
credit. D eposits gained $11,000,000
for a new to tal of $390,000,000. H old­
ings of U. S. G overnm ent bonds stayed
approxim ately the sam e at $105,000,000 b u t Cash and Due from B anks
totaled $169,000,000 an increase of $7,000 , 000 .

On page 60 of th e October issue of
th e N o r t h w e s t e r n B a n k e r , in new s re ­
p o rting th e recen t an n u al Iow a con­
vention, m ention w as m ade th a t “Iowa
b an k ers enjoyed th e buffet luncheon
served by th e F irs t N ational and D rov­
ers N ational banks of Chicago, and th e
Live Stock N ational Bank, of Sioux
C ity”. T he D rovers and Live Stock of
Sioux City w ere hosts, as w as also the
City N ational Bank, of Chicago, in ­
stead of th e F irs t N ational. W e re g re t
th is e rro r and correct it herew ith.

A R T H U R T. L EO N A R D

M r . L e o n a r d , v ic e p r e s i d e n t o f t h e C ity
N a t i o n a l B a n k a n d T r u s t C o m p a n y , C h i­
c a g o , in c h a r g e o f t h e tr u s t d e p a r t m e n t
o f th e in s titu tio n , h as b een e le c te d a
m e m b e r o f t h e e x e c u ti v e c o m m i t t e e o f
t h e T r u s t D iv is io n o f t h e A m e r i c a n
B a n k e r s A s s o c i a ti o n .

I Jo u te y o u r W is c o n s in ite m s

D IR E C T
to th e P O I N T
o f p r o m p t c o lle c tio n !

This hank is the largest in the Wisconsin-Iowa-Dakota-M innesota area . . . serving
m ore than 500 W isconsin correspondents — assuringyou prom pt,efficient collection of W iscon­
sin checks and drafts. Your inquiries are invited.

No Room

D irect to th e p o in t ’
because — th e F irst
W isconsin serves as
M ilw a u k e e c o r r e ­
s p o n d e n t f o r over
8 5 p e r cen t o f a ll
W is c o n s in b a n k s!

F irs t W isconsin N ational B a n k
Resources over $250,000,000
M E M B E R OF T H E F E D E R A L D E P O S I T I N S U R A N C E C O R P O R A T I O N

N orthw estern B anker N ovem ber 1940

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

of M ilw a u k e e

Producer: “I w a n t you to dance in
th is costum e and p u t every th in g
y o u ’ve got into it.”
Chorine: “How dare you in su lt me
th a t way!”
Producer: “B ut th is is a perfectly
stan d ard costum e, isn ’t it?”
Chorine: “Sure, b u t every th in g I ’ve
got w ouldn’t even begin to go into it.”
“W ill you let m e have five dollars
for a few days?”
“Sorry, I ’ve only got four.”
“T h a t’s all right. You can owe me
th e o th er one.”

67

H ow Iowa Banks Can
Assist in the
By W . A. Lane
President
Se curity Savings Bank
Marshalltown, Iowa

"The greatest contribution
that banks can make to the
defense program and the
general welfare is to see
that our banks remain
sound financial institutions.
In doing this I feel we will
well serve our country."

H E late S enator Cum m ins, one of
Iow a’s g re a t statesm en, once said,
“As I grow in y ears I am ju s t as
certain as I ever w as th a t a conclusion
arriv e d at is th e correct one b u t I am
n o t quite so certain, as I used to be,
th a t those w ho differ w ith m e are
w ro n g .”
All w ill agree w ith th e prem ise th a t
since 1933 th e w orld has been in a
state of v iolent revolution, our own
co u n try n o t excepted. One of th e re ­
su lts of th is upheav al has been an a t­
tack on th e capitalistic system . In
short, it has been a conquest of th e
have nots ag ain st those w ho have. In
ou r own co u n try political m an ip u la­
tion has intensified th e processes.
I th in k it is u n fo rtu n a te th a t so dom ­
in a n t a p a rt of our govern m en tal influ­
ences are close to th e ea ste rn seaboard.
T h ere is no doubt a prepo n d eran ce of
sen tim en t in th a t section for our active
particip atio n in th e E u ro p ean conflict.
No co u n try w as ever m ore rich ly en ­
dow ed m aterially, sp iritu ally and edu­
cationally for th e leadership th e w orld
so m uch needs today. I am not u n ­
m indful of th e g re a t p o ten tial dangers
th a t are on our horizon b u t I am not
read y to adm it th a t our destin y is an
em broilm ent in th e p re se n t conflict. I
am so rry to believe th a t th e re is m uch
political com plex in our sudden de­
fense urge.

T

VßfßnSß

economic cooperation and tru s t am ong
all peoples.
I do n o t m inim ize our responsibility
to th e w orld in w hich we live and have
our being. The Smoot-Hawley tariff

W e should be able to see th a t the
w ar in E urope today is th e death
th ro es of an epoch. An age is dying.
T he old idea of selfishness, greed and
h ate m u st go. In its place m u st come

urn
HAI

y
^ i

u

Prog ram

r
Nil
IT
Ai L

FOR
NORTHEASTERN IO W A
BANKERS
★
Our corresp ondents tell us they like
the prompt action they g et on their
N ortheastern Iow a b u sin ess from this
bank.
Our facilities are k ey ed for quick, effi­
cient service to satisfactorily h a n d le
a ll your item s.
YOUR ACCOUNT
IS INVITED
★

T he

Na t i o n a l B a n
o f Wa t e r l o o

MEMBER . . Federal Reserve System
Federal Deposit Insurance Corporation
N orthw estern B anker N ovem ber 19k0


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

68

•
bill w as no doubt one of th e econom ic
atro cities of all tim e and did m uch to
in ten sify w orld m alad ju stm en ts. And
it is to be re g re tte d th a t as fa r back as
th e L ondon Econom ic C onference our
p re se n t day leaders have failed to take
th a t leadership for w orld econom ic co­
operation w hich no doubt w ould have
deferred th e w ar in E u ro p e for a long
tim e. W hen w orld re a d ju stm e n ts are
made, and th is m u st come before th ere
can be an y lastin g peace, th e U nited
States m ay be com pelled to m ake huge
econom ic and financial con trib u tio n s
to w orld stabilization.

I O W A

N E W S

Conscious th a t we live in a w orld
w here, tem p o rarily at least, tan k s and
airp lanes seem to be th e m easure of
rig h t, it is im perative th a t we leave
n o th ing undone to provide for this
co u ntry a defense th a t w ill be second
to none.
B eing in ag reem ent th a t a proper
defense program should have u n iv e r­
sal su p p o rt th e question n atu rally
arises, W h at Can th e B anks of Iowa
Do to A ssist in th e Defense Program ?
I th in k it is an axiom atic statem en t
th a t “The arm y fights on its stom ­
ach.” In o th er w ords, an arm y m ust

32d Semi-annual Statement as o f June 30, 1 940

POLK COUNTY
Federal Savings and Loan Association
511 Seventh St., Des Moines, Iowa
A SSE TS
F ir s t
Mortgragre
R eal
E s ta te
L oans ................................................§1,400,156.0'9
T e m p o rary L oans to S h areh o ld ers
3,695.00
R eal E s ta te O w n ed ..........................
12.071.49
R eal E s ta te Sold on C o n tra c t. . . .
29.436.98
R eal E s ta te in J u d g m en t and Sub­
2.104.35
je c t to R ed e m p tio n ......................
Stock in F ed eral Home Loan
B a n k ..................................................
26.500.00
D ividends R eceivable fro m Fed­
e ra l H om e L oan B a n k ..................
153.08
F u r n itu re a n d F ix tu re s ..................
4.950.77
P re p a id R en t, In su ra n c e, etc.........
2.939.63
72.91
A ccounts R eceivable ......................
Cash .......................................................
34.129.03
TO TA L

§1,516,209.33

L IA B IL IT IE S
S h a re h o ld e r’s I n te r e s t......................§1,121,350.26
P riv a te S h a re s ........... § 870,909.26
250,000.00
H .O .L.C . ....................
§1,121,350.26
A dvances fro m F e d e ra l Home
L o an B an k .....................................
A ccounts P a y a b l e ...
532.73
M o rtg age L oans in P ro g re ss . . . .
D ividends D eclared bu t N ot P a id .
R eserve ................................................
F o r U ncollected In te re s t,
F e d e ra l In su ra n c e, R eal
E s ta te G uarantees, and
C ontingencies.
U ndivided P ro fits .............................

309.185.00
43,348.06
18,537.35
22.586.99

668.94

$1,516,209.33

TO TA L

Federal Home Loan Bank of Des Moines
DES MOINES, IOWA
STATEMENT OF CONDITION OCTOBER 31, 1940
R ESO U R C ES
A dvances to M em b ers.......................................................................................................§17,594,495.20
U . S. G overnm ent O b lig atio n s a n d S ecu rities G u aranteed by U . S................. 1,367,000.00
A ccrued In te re s t R eceiv ab le.........................................................................................
39,566.98
D eferred C h a r g e s ...............................................................................................................
9,918.57
Cash .......................................................................................................................................
593,810.29
$19,604,791.04
L IA B IL IT IE S
M em bers’ Stock S u b s c rip tio n . . .
G overnm ent Stock S u b scrip tio n
^D ebentures O u tstan d in g ...........
P rem iu m s on D eb en tu res .........
D eposits ............................................
A ccrued In te re s t P a y a b le .........
S u rp lu s:
R eserves ........................................
U ndivided P r o f i t s ......................

........................§
........................
........................
........................
........................
........................
§471,571.38
277,905.21

2,623,625.00
7,394,900.00
7,500,000.00
312.50
1,302,528.55
33,948.40
749,476.59

$19,604,791.04
^ P a rtic ip a tio n in $48,500,000 consolidated F ed eral Home L oan B ank d ebentures o u t­
stan d in g , w hich a re th e jo in t and sev eral o b lig atio ns of th e tw elve Federal Home L oan
B anks.

Northwestern Banker

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Federal Reserve Bank of St. Louis

Novem ber 1940

•
have food supplies as well as guns,
tanks, airplanes and am m unition.
In seeing th a t Iow a agricu ltu re is
p roperly financed w ill be a vital con­
trib u tio n to th e defense program . In
th is field th e Iow a b ankers know
p re tty w ell th e hazards involved.
Iow a banks, in all probability, w ill
not be confronted, to any g reat degree,
w ith loan applications for m aterials
and p lan t expansions to fill defense or­
ders. In case th ere is such, it is m y
opinion th a t the b an k er should evalu­
ate th e loan w ith o u t any reference to
the defense program . T his rule should
apply even though th ere be an offer of
RFC particip atio n in the loan. The
RFC has a su rp lu s of alm ost 300 m il­
lion dollars and can, if necessary, be
subsidized w ith F ed eral funds. It has
no dem and deposits and w as organized
to take risk s th a t no bank should as­
sume.
A nother particip atio n in the defense
program w ill be th e purchase of gov­
e rn m en t securities, direct and g u aran ­
teed.
Iow a banks have alw ays been liberal
buy ers of these securities and I am
sure w ill be in th e fu ture, consistent
w ith sound b anking practice.
In th is connection, how ever, every
b an k should determ ine w h at p a rt of
th e ir to tal assets are to be invested in
bonds. Also th e b ank m ust determ ine
w h at w ill be th e m axim um m atu rity it
w ill buy and how th e m atu rities are to
be staggered.
To illustrate: In our ow n b ank we
allocate 25 p er cent of our total assets
for bond investm ent, w ith no m atu rity
beyond 10 y ears an d at least 60 per
cent of th e to tal account due w ithin
five years. P aren th etically , I m ight
add th a t over 80 p er cent of our pres­
e n t holdings are due w ith in five years.
W e all w a n t to be p atriotic and give
every possible su p p o rt to our govern­
m en t b u t we m u st not forget th a t first
and forem ost w e are tru stees of other
people’s funds. Most of us can rem em ­
b er th e early ’30’s w hen deposits de­
clined so suddenly and so rapidly.
W ith deposits now a t an all tim e high,
it is a dum b b an k er indeed w ho does
n o t have some concern as to th e fu­
ture.
W e know th a t this great deposit in ­
crease is largely th e re su lt of im por­
tations of gold and go v ern m en t deficit
financing. I w ill n ot atte m p t to dis­
cuss here th e fu tu re m obility of gold
or th e ultim ate liquidity of govern­
m en t securities. Suffice to say th a t
th is co u n try now holds over 70 per
cent of th e w o rld ’s m o n etary gold and
(T urn to page 71, Please)

The

lOWa

Convention

Building and Loan League Holds Forty-ninth Annual
Meeting in Cedar Rapids

H E 49th a n n u al convention of th e
Iow a B uilding & L oan L eague w as
called to ord er a t 9:30 a. m., M on­
day, October 28th, a t th e Hotel M ont­
rose, Cedar R apids, Iowa. T he conven­
tion w as probably th e larg est th a t has
y et been held in th e state of Iowa.
E ddy K lapka, as secretary of th e
B uilding & L oan L eague of Iowa, is
probably th e o u tstan d in g se cretary of
an y state league in the U nited States.
H elping w ith th e re g istra tio n S un­
day night, w as L. J. M aresh, secretary
of th e Cedar R apids B uilding & Loan
A ssociation, and doing a sw ell job a s­
sistin g him w ere B urton H. H ynden,
P erp etu al Savings & L oan A ssociation,
an d F red A. K ubicek, directo r an d a t­
to rn ey for the B ohem ian Savings &
Loan A ssociation.
It is an old sto ry to say, “I am going

T

By J. Stuart Davis
Asso cia te Editor

out to v isit a sick friend,” b u t Sunday
n ig ht it w as really tru e and E. K lapka
of F o rt Dodge, Vern L ynch of Ames,
and H. R. H an ger of D ubuque did visit
a sick friend, H. H. B enn ett, secretary
of th e P erp etu al Savings & Loan Asso­
ciation of Cedar Rapids, and a m em ber
of th e board of th e F ederal Home Loan
B ank of Des Moines, has been ill for
some tim e and all his friends are w ish­
ing him a quick recovery.
F rom th e F ed eral Home L oan B ank
of W ashington, D. C., w as F red W.
Catlett, w ho is no stran g er to th e m id­
dle w est. H is address on M onday eve­
ning w as inspiring.

B urton R obbins, chairm an of the
board of th e F ederal Home Loan B ank
of Des Moines, resides in Cedar Rapids
and is proud of it. He is also secretary
of th e A m erican Life Convention.
The assets of th e th ree associations
in Cedar Rapids am ount to b etter th an
$7,000,000. It is in terestin g to note th a t
the oldest of these associations. The
B ohem ian Savings & Loan, is 48 y ears
old, having been organized F eb ru ary
17, 1892. The Cedar Rapids Building
and Loan A ssociation is over 50 years
old, having been organized Septem ber
5, 1890. The oldest association in Cedar
Rapids and th e second oldest co n tin u ­
ously operated association in th e state
of Iowa is th e P erp etu al Savings &
Loan, having been organized Ja n u a ry
18, 1875. A good record for any town.
Seventy of th e B uilding & Loan

A T THE C ED AR R A P ID S C O N V E N T IO N
U p p e r Row, re a d in g fro m le f t to r ig h t— Charles B. Robbins,
c h a irm a n b o a rd , F e d e ra l H om e L o a n B a n k of D es M oin es; R ob­
ert J. R ichardson, p re sid e n t, F e d e ra l H om e L o an B a n k of Des
M oin es; W. R. Boyd, p re sid e n t, P e rp e tu a l S a v in g s a n d L o an
A s so c ia tio n , C e d ar R a p id s ; M orton Bodfish, e x e c u tiv e v ice p re s i­
d e n t, U n ite d S ta te s S a v in g s a n d L o a n L ea g u e, C hicago; V erne
M. Lynch, s e c re ta ry -tre a s u re r, A m es B u ild in g a n d L o a n A sso c ia ­
tio n a n d 1940 p re s id e n t o f th e Io w a B u ild in g a n d L o an L e a g u e ;
F ran k G. N ebiker, s e c re ta ry -tre a s u re r, B u rlin g to n F e d e ra l S a v ­

in g s a n d L o an A sso c ia tio n a n d n ew ly e le c te d p re s id e n t of th e
Io w a S a v in g s a n d L o a n L eag u e.
L o w er R ow — J. M. M artin, a s s is ta n t s e c re ta ry , F e d e ra l H om e
L o an B a n k , D es M oines; E. S. Tesdel, D es M oines, Io w a ; Jam es
W. Camp, s e c re ta ry , U n ite d F e d e ra l S a v in g s a n d L o an A sso c ia ­
tio n , D es M oin es; T. H. G lasener, P e rp e tu a l B u ild in g a n d L o an
A sso c ia tio n , W a te rlo o ; Jonath an F letch er, H om e F e d e ra l S a v in g s
a n d L o an A sso c ia tio n , D es M oines, a n d Fred W. C atlett, b o a rd
m em ber, F e d e ra l H om e L o a n B a n k , W a sh in g to n , D. C.

Northwestern Banker Novem ber Î9/i0

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70

• SAVI N GS
A ssociations of Iow a are m em bers of
th e F ed eral H om e Loan B ank of Des
Moines and th e ir to tal assets am o u n t
to $48,216,915.
The last sta te m e n t of th e U nited
F ed eral Savings & L oan A ssociation of
Des M oines is one th a t Jim Camp is
ju stly proud. C ongratulations, Jim .
No Iow a convention w ould be com­
plete w ith o u t th e presence of J. W.
Irons, m em ber of th e board of th e Fed-

THE
PERPETUAL
SAVINGS AND LOAN
ASSOCIATION

I n c o r p o r a te d 1875

“H o m e

Loans

fo r

O ver

S ix ty - fiv e

Y ea rs”

Loans to help buy, build, repair,
refinance

3 1 9 T h i r d S t r e e t S .E .

CEDAR R A P ID S, IOW A

Since 1878

LIBERAL EARNINGS
with

SAFETY

AND

LOAN

eral H om e Loan B ank of Des Moines,
and secretary of th e M utual F ederal
Savings & Loan A ssociation of Mason
City.
The executive com m ittee of th e Iowa
B uilding & Loan League m et Sunday
n ig h t w ith C hairm an John C. Shenk,
se c retary -treasu rer of th e F irs t F ed ­
eral Savings & Loan A ssociation of
D avenport, in charge.
L. D. R oss, secretary of th e Polk
C ounty F ed eral Savings & Loan Asso­
ciation, rep o rts assets as of October 1,
1940, $1,583,558. An increase of some
$200,000 for th e y ear to date. He also
states th a t out of 576 applications 220
w ere approved for a total of $425,000.
The F ederal Hom e L oan B ank of
Des Moines w as ably rep resen ted by
P resid en t Robt. J. R ichardson and
Mrs. Richardson; J. M. M artin and
Robt. H. B ush, counsels for th e bank.
E lm er M iller, secretary of th e Des
M oines B uilding, Savings & L oan Asso­
ciation, rep o rts th a t on May 1,1941, th e
association w ill be 25 y ears old. On
D ecem ber 31, 1916, th e assets of th e
association w ere $10,017.52. T heir as­
sets, as of Ju n e 30, 1940, w ere $3,178,946.11. Nice gain, Elm er.
A t th e M onday m orning m eeting th e
address of welcome as given by F rank
K. H ahn, m ayor of Cedar Rapids, and
th e response by F ran k G. N ebiker, first
vice president, B urlington. Follow ing
was th e p re sid e n t’s address by B. M.
Lynch, Ames; th e secretary -treasu rer’s
re p o rt by E. M. K lapka, F o rt Dodge.
Robt. J. R ichardson, p resid en t of th e
F ed eral Hom e L oan B ank of Des
Moines, delivered an address in his
usual able m anner, en titled “W e A re
W ell Fortified.” O ther addresses w ere
"Going Up,” H ubert E. Jam es, Des
M oines C hapter, A m erican Savings &
Loan In stitu te; “T he Im portance of
A ccurate A ppraisals,” G. H. F allin ,
president, Society of R esidential A p­
praisers, Peoria, Illinois. T his ended
th e m orning session.
The ladies of th e convention w ere
well tak en care of, u n d er th e direction
of Mrs. D avid T urner and Mrs. Fred

Statement on request

S A F E T Y IN
INVESTMENT

W a t e r lo o

A ccounts Insured Up To
$5,000.00

B u i l d i n g and Loan
Association
W ATERLOO

n

IO W A

and

N orthw estern B anker N ovem ber 19f0

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

Loan A ssociation
of

350 Cedar

S t.

K ubicek, ably assisted by M esdames
W iler, C rissm an, B rom w ell, M aresli
and Suchom el.
R ichard S tillw agon, secretary of the

In su ran ce P lan Savings & Loan Asso­
ciation of Des Moines, rep o rts th a t on
Ju n e 30, 1939, th e association assets
w ere $124,207.53, and as of th is date,
approxim ately $500,000, show ing a very
nice gain.

MONEY
TO LOAN
T o B u ild N ew H o m es
T o R efin a n ce Y o u r
P r e se n t L oan
LOW M O N TH LY PA YM ENTS
N O C O M M IS S IO N S

Cedar Rapids Building
and Loan Association
9 2 -9 4 F i r s t A v e n u e N ¥
C edar

D ia l 7211

R a p id s, I o w a

Founded 1892

A m p l e f u n d s t o lo a n o n h o m e s .

R eso urces $1,400,000.00

Obey that impulse.
home.

Build a

THE BOHEMIAN
SAVINGS & LOAN
ASSOCIATION
419 3rd St. S.E.
C e d a r R ap id s, Io w a

s

Vjj IF
d fer
d a l Savings
Ffed

East Fifth at Lafayette

•

S t. P a u l
S t.

Paul, Minn.

Thos. Suchom el, President
Jo h n V. Ro m potl, S e c r e t a r y

71
The M onday aftern o o n m eeting w as
opened by a v ery able ad dress by Fred
W. Catlett, m em ber of th e board, F ed ­
eral H om e L oan B ank, W ashington,
D. C. F o u r o th er addresses followed:
“Selling Inside th e In stitu tio n ,” by H.
M erle Sm ith, a ssista n t to president,
M issouri S tate League of B uilding &
L oan A ssociation, K ansas City, Misrouri; “F in an cin g N ational D efense,”
by Dr. C. W. Maey, professor of eco­
nom ics, Coe College, Cedar Rapids;
“T he Im pact of F ed eral L egislation on
B uilding & Loan A ssociations,” by A.
W. Gordon, president, O m aha L oan &
B uilding A ssociation, O m a h a , N e­
b raska. T he last address of th e a fte r­
noon w as by Morton Bodfish, execu­
tive vice president, U nited Savings &
L oan League, Chicago. Mr. Bodfish is
a dynam ic speak er and w as e n th u si­
astically received.
More th a n seventy-five ch ap ters and
stu d y clubs of th e A m erican Savings &
Loan In stitu te, d u rin g th e p ast have
held classes for 2,500 students. Courses
follow ed w ere Savings and L oan P rin ­
ciples, A ppraising, A ccounting M an­
agem ent, In su ran ce, P ublic R elations,
R eal E sta te Law , C om m ercial Law,
E ffective E n g l i s h , B usiness L e tte r
W riting, Econom ics, H om e C onstruc­
tions, F ed eral Code an d Cases, State
Code and Cases, A dvertising, and
B usiness D evelopm ent. N early 30 per
cent of th e p re se n t en ro llm en t are
wom en.
M orton Bodfish an d M erle Sm ith en­
gaged a tax i to drive th em to D ubuque
to catch a tra in to Chicago. T hey
m issed th e tra in by 15 m in u tes and
drove back to Cedar R apids to tak e th e
N o rth w e ste rn on M onday night. H ow ­
ever, th e y h ad a nice rid e th ro u g h th e
country.
The b an q u e t held M onday n ig h t w as
an innovation. T h ere w ere no sp eak­
ers. H ow ever, th e re w as good food
and excellent e n te rta in m e n t an d the
large crow d atte n d in g enjoyed th e m ­
selves im m ensely.
T uesday m orn in g w as ta k e n up w ith
ro u n d table discussions covering th e
follow ing subjects, Is It A dvisable to
P ay on D em and?, led by H. R. H anger,
D ubuque; In te re s t R ates, D ividend

UNBROKEN
DIVIDEND RECORD FOR
20 YEARS
□

H O M E

Building and Loan Association
FORT DODGE, IOWA

R ates and R eserves, L. D. R oss, Des
Moines; D isbursem ents on C onstruc­
tio n Loans, John C. Shenk, D avenport;
H ow M uch Should W e B orrow to
Lend?, C. H. W arnock, Iow a Falls;
Legal Pitfalls, F . S. T esdell, Des
Moines, and A ppraisals, L ending P lans
and Practices, by R. G. H olm es, W at­
erloo.
The convention for 1941 w ill be held
in Des Moines, Iowa, and th e Cedar
R apids convention ad jo u rn ed w ith th e
election of F ran k G. N eb ik er as p resi­
d en t for 1941. Mr. N ebiker is secre­
ta ry -treasu rer of th e B urlington F ed ­
eral Savings & L oan A ssociation of
B urlington, Iowa. O ther officers nam ed
w ere N. J. M anning, N ewton, first vice
p resident; L. J. M aresh, Cedar Rapids,
second vice president, and E. N. Klapa,
F o rt Dodge, secretary -treasu rer (re­
elected).
The new executive com m ittee is
com posed of V. M. L yn ch , Ames, ju n ­
ior p ast president; John C. Shenk, Dav­
enport, and E lm er M iller, Des Moines.

D EFEN SE P R O G R A M
(C ontinued from page 68)
has 100 p er cent of the problem as to
its fu tu re use.
In m y hum ble opinion, every b ank
should so m anage its affairs th a t it w ill

ASSETS OVER
$ 1, 2 0 0 ,0 0 0 .0 0

F e d e r a l S a v in g s
0ÜAND LOAN

A S S OCI AT I O N

OF DES MOINES
216 8 th S tre e t

P h o n e 4 -5 3 2 4

Des Moines Building-Loan
and Savings Association
48th Sem i-Annual Statement
June 30, 1940
A SSE TS
F ir s t M o r tg a g e R e a l E s ­
t a t e L o a n s ................................... $ 2 ,7 8 0 ,2 4 0 . 8 3
R e a l E s t a t e .....................................
8 7 , 8 4 9 .7 7
R ea l E sta te C o n t r a c t s ....
6 4 , 5 6 7 .2 6
L o a n s o n S to c k P le d g e d ..
1 1 ,8 2 2 .3 7
Federal H om e L oan
B a n k S t o c k ...............................
2 5 , 0 0 0 .0 0
F u r n itu r e a n d F i x t u r e s . ..
1 .0 0
C a sh D e p o s ite d w ith F e d ­
e r a l H . L . B a n k . .................
5 0 , 0 0 0 .0 0
I n te r e s t b e a rin g d epo sit.
C a sh o n H a n d a n d in
B anks
...........................................
1 5 9 ,4 6 5 .3 8
T o t a l ................................................. $ 3 , 1 7 8 ,9 4 6 . 1 1
L IA B IL IT IE S

SAFETY
IN

INVESTMENT
A C C O U N T S IN S U R E D U P TO

$ 5000.00

I n s t a l l m e n t S t o c k ..................... $ 2 , 6 1 2 ,2 9 1 . 2 8
P l e d g e d S h a r e s ..........................
4 5 2 ,3 2 9 .8 1
5 6 , 5 1 9 .5 6
I n c o m p l e t e d L o a n s .................
A dvances by F ederal H om e
L oan
B ank
and
B ills
P a y a b l e ............................... . . .
N O N E
R e a l E s t a t e R e s e r v e ............................................... 3 , 8 4 4 .8 7
U n e a r n e d P r o fit o n R . E .
S o l d o n C o n t ............................
1 1 ,1 4 5 .8 8
C o n t i n g e n t R e s e r v e ............................................... 3 5 , 3 0 0 .0 0
U n d i v i d e d P r o f i t s ....................
7 ,5 1 4 .7 1

C U R R E N T R A T E 4%
T o t a l ................................................ $ 3 , 1 7 8 ,9 4 6 . 1 1

IN S U R A N C E P L A N SA V IN G S
& LO AN A SSO C IA TIO N
710 G R A N D A V E .

E L M E R E . M IL L E R
P r e sid e n t a n d S e c r e ta r y

D E S M O IN E S, IA.

H U B E R T E. JA M ES
A s s is ta n t S e c r e ta r y

Member Federal Home Loan Bank

90+

GRAND AVENUE

• • D E S M O I N E S , IO W A

Our F e d e ra lly In su red Up to $ 5 ,0 0 0
s a v in g s a c c o u n ts a re th e s o lu t io n to y o u r in v e s tm e n t a n d tr u st p r o b le m s .
d i v i d e n d 3 V2 p e r c e n t .

C u rren t

A ssets over $ 1 ,4 0 0 ,0 0 0 .0 0
A r th u r S. K ir k
P r e sid e n t

C . B . F le t c h e r
S e c r e ta r y -T r ea su r e r

M em b er F e d e ra l H om e L o an B an k S y stem

N orthwestern Banker

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

Novem ber 19^0

72
be able to stan d on its ow n feet w ith ­
out any th o u g h t of being bailed out
th ro u g h redisco u n ts or p re fe rre d
stock.
T here are those holding to th e idea
th a t th e re should be a single ban k in g

MERCHANTS
MUT UAL

B O N D IN G
COMPANY
In c o rp o ra ted

1933

Home Office
V A L L E Y B A N K B U IL D IN G
D e s M o in e s , Io w a

•

•

T h i s i s I o w a ’s o l d e s t s u r e t y c o m p a n y .
A

p r o g r e s s iv e

com pan y

w ith

e x p e r i­

e n c e d , c o n s e r v a tiv e m a n a g e m e n t.
are

proud

bank
To

a g e n ts

of

our

in

hu ndred

and

We
fif ty

Iow a.

b e t h e e x c l u s i v e r e p r e s e n t a t iv e * o f

t h is c o m p a n y is a n a s s e t t o y o u r b a n k .

•

•

W rite to
E. H . W A R N E R
S e c re ta ry and M an a g er

1

HE keen executive equips his

clerical force with

G-F Goodform

chairs of aluminum.

He knows it's

good business to keep his office help
comfortable and relaxed.

KOCH BROTHERS

PRIMERS - BOOKBinOERS - OFFICE O U T F I T T E R S
STMIOnERS - BUSinESS mnCHIflES

GRnno

nvEnuE

at

fourth

Northwestern Banker Novem ber 19^0

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

system in th is co u n try and th a t u n d er week, th e b a n k ’s w orkw eek can com­
F ed eral control. (And in event of our m ence at four o’clock T hursday afte r­
p articip atio n in a w ar th a t m ight be noon and end at four o’clock th e fol­
one of th e first steps taken.) If th a t low ing T h u rsd ay afternoon. This en­
does come to pass, th e p riv ately owned ables the en tire staff to w ork during
b an k s m ig h t become ju s t as autono­ th e heavy period and the various in ­
m ous as th e F ed eral R eserve Banks, dividuals to be released a necessary
p riv ately owned, are today.
n um ber of h o urs d u rin g th e lighter
W e also know th a t th ere is a pow ­ period.”
erfu l group w ho feel th a t priv ate capi­
talism cannot m eet th e com plicated
Annual Spring Meeting
needs of a highly socialized society and
The E xecutive Council of th e
th e em ergency dem ands of th e g overn­
m ent. T his group th in k th a t th e gov­ A m erican B ankers A ssociation will
e rn m en t should control all banks, all hold its an n u al m eeting at th e H om e­
in su rance com panies and all industry. stead, H ot Springs, V irginia, A pril 27In spite of all these potential dan ­ 30, 1941, it is announced by P. D.
gers and th re a ts to our independent H ouston, A.B.A. president, w ho is
existence, I feel th a t the tim es require ch airm an of th e board of th e A m eri­
th e u tm ost caution in th e m aking of can N ational B ank of N ashville.
The A ssociation’s E xecutive Coun­
loans or the purchase of bonds. In m y
opinion the g reatest co n tribution th a t cil is its policy m aking body w hich
th e banks of Iow a can m ake to the acts for th e m em bership in th e in ­
defense program and th e general w el­ terim betw een the an n u al A.B.A. con­
fare is to see th a t our banks rem ain ventions. It consists of 117 b ankers
sound financial in stitu tio n s. In doing rep resen tin g the banks of the fortyth is I feel th a t we w ill w ell serve our eight states and th e D istrict of Co­
lum bia. D uring th e four-day m eet­
country.
ing, th ey w ill receive and consider
rep o rts of the various divisions, sec­
W ages and Hours
tions, com m ittees, and councils of the
M ethods for adapting b ank opera­ Association.
tions to th e new regulations issued by
th e A dm in istrato r of th e F a ir L abor
S tan dard or W ages and H ours Act,
are contained in a special bulletin is­
sued by th e B ank M anagem ent Com­
m ission of the A m erican B ankers As­
sociation, w hich w as m ailed to th e
A ssociation’s en tire m em bership re ­
cently.
CASUALTY COMPANY
The b u lletin contains th e A dm inis­
DES MOINES
tr a to r ’s new definitions of “executive,”
An Agency Company — Assets Over $4,000,000
“ad m in istrativ e,” and “professional”
em ployes and explanations thereof;
• Automobile Insurance
• Workmen’s Compensation
recom m endations of o perating pro­
• General Liability
cedure such as th e estab lish m en t of
* Elevator Insurance
th e w orkw eek; suggestions for th e de­
* Plate Glass Insurance
term in atio n of w orking hours, keeping
of tim e records, elim ination of w ork
duplication, reduction of peak loads;
and four plans for th e com puting of
overtim e. These are called th e R egu­
It takes more
lar W orkw eek Plan, th e F lu ctu atin g
than a pair of
W orkw eek Plan, th e Time-Off Plan,
and th e P re-P aym ent Plan.
suspenders to
The bulletin states th a t th e w o rk ­
w eek does not necessarily have to be
hold up a m an’s
on a calendar basis from M onday to
reputation for
S atu rday b u t can be any consecutive
seven days. I t adds, how ever, th a t
dressing w ith
once such a w orkw eek is established
self-respect
it should be m ain tain ed w ith in the
s p irit of th e Act.
It points out th a t th e busy and light
Q u ality Since 1861
periods v a ry in banks and suggests
th a t th e b est plan of procedure is to
s ta rt th e w orkw eek a t th e beginning
of th e busy period. “F o r exam ple,” it
DES MOINES
says, “suppose th e busy period is F ri­
day, S atu rd ay and M onday of each

EMPLOYERS
MUTUAL

FR A N K E L ' S

73
P
P e r p e t u a l S a v in g s a n d L o a n A s s ’n ............. 70
P h ila d e lp h ia N a t io n a l B a n k ............................ 34
P o l k C o u n t y F e d e r a l S a v in g s a n d L o a n 68

Index to
A dvertisers

IT

U n it e d F e d e r a l S a v in g s a n d L o a n A s s ’n 71
U n it e d S t a t e s C h e c k B o o k C o m p a n y . . . . 47
U n it e d S t a t e s N a t i o n a l B a n k ......................... 44
V

V a l l e y S a v i n g s B a n k ........................................... 64

w

A

A lle n W a le s A d d in g M a c h in e C o r p ............
A . C. A lly n a n d C o m p a n y .................................
A m e r ic a n I n s t i t u t e o f B u s i n e s s ..................
A m e r ic a n N a t io n a l B a n k a n d T r u s t C o ..
A n d r e w s H o t e l .......................................................

75
30
73
56
52

W a n t A d ......................................................................
C h a r le s E . W a l t e r s C o m p a n y .........................
W a t e r lo o B u i l d i n g a n d L o a n A s s n ..........
W e s t e r n M u tu a l F i r e I n s u r a n c e C o ..........
W e s s l i n g S e r v ic e s ................................................

65
48
70
63
73

It
B a n k e r s T r u s t C o m p a n y ................................58-59
B o h e m ia n S a v i n g s a n d L o a n A s s ’n .......... 70
V . W . B r e w e r C o m p a n y ................................... 26
C

C e d a r R a p id s B u i l d i n g a n d L o a n A s s ’n .
C e n t r a l N a t io n a l B a n k a n d T r u s t C o .. . .
C h a s e N a t io n a l B a n k ...........................................
C it y N a t io n a l B a n k a n d T r u s t C o ...............
C o m m e r c ia l I n v e s t m e n t T r u s t C o...............
C o n t i n e n t a l I l l i n o i s N a t io n a l B a n k a n d
T r u s t C o .....................................................................
C o n t i n e n t a l N a t io n a l B a n k ..............................

70
3
4
43
30
49
48

IJ

I o w a ’ s L a r g e s t B u s in e s s T r a in in g Sch o o l

D a v e n p o r t a n d C o m p a n y , P . E .................. 46 -6 2
D e s M o in e s B u i l d i n g a n d L o a n A s s ’n . . . 71
D r o v e r s N a t io n a l B a n k ...................................... 61

M a n y b a n k s, bond-houses, in su ra n c e
co m panies a n d o th e r fin a n c ia l in s t i ­
tu tio n s em ploy A. I. B. g ra d u a te s .
W rite o r te le p h o n e w h en you need
efficient office em ployes.

E

E m p lo y e r s M u tu a l C a s u a lt y C o m p a n y ..

72

F

p resid en t of the
George State B ank, and a p a rt of his
catch w hen he w en t fishing a t Lake
V erm illion, Cook, M innesota.
E.

E.

M anuel,

F e d e r a l D is c o u n t C o r p o r a t io n ......................
F e d e r a l H o m e L o a n B a n k o f D e s M o in e s
F i r s t F e d e r a l S a v i n g s a n d L o a n A s s ’n . .
F i r s t N a t io n a l B a n k , S io u x C i t y .................
F i r s t W is c o n s in N a t io n a l B a n k ..................
F r a n k e l C lo t h in g C o m p a n y ............................

E. O. F E N T O N , P resid en t
28
68
70
60
66
72

American Institute of Business
DES M O INES
10th and G rand
T el. 4-4203

G
G e n e r a l M o to r s A c c e p t a n c e C o r p o r a tio n 27
G u a r a n t y T r u s t C o m p a n y .................................
5

II

Cornered
A society m atro n h ad h ired a p riv ate
detective to shadow h e r h u sb an d and
w h en th e dick p resen ted th e bill, she
gasped in astonishm ent:
“W hy, y o u ’ve charged me ju s t half
th e am o u n t we agreed upon. W h a t’s
th e idea?”
“The idea is th is,” replied th e de­
tective. “T he dam e I cau g h t him w ith
w as m y w ife.”

H a l s e y S t u a r t a n d C o m p a n y , I n c .................
H a w k e y e M u tu a l H a il I n s u r a n c e A s s ’n .
H o m e B u ild in g a n d L o a n A s s o c ia tio n . . .
H o m e F e d e r a l S a v in g s a n d L o a n A s s n . .
H o m e I n s u r a n c e C o m p a n y ..............................
H o t e l L i n c o l n ............................................................
H o t e l W e l l i n g t o n ..................................................

29
73
71
71
6
43
47

I
I o w a - D e s M o in e s N a t io n a l B a n k a n d
T r u s t C o m p a n y .................................................. 76
I n s u r a n c e P l a n S a v in g s a n d L o a n A s s ’n 71
I o w a I n v e s t m e n t B a n k e r s A s s o c i a t i o n . . 24
J

J a m ie s o n a n d C o m p a n y ...................................... 53
K

K o c h B r o t h e r s ...........................................................

72

L

Solo
“One of th e p layers in th e prison
o rch estra cu t th ro u g h th e b ars and
escaped.”
“H ow did he do it? ”
“It w as easy. He w as th e fellow w ho
played th e m usical saw .”
P U B L I S H E R ’S ST A T E M E N T
S tatem en t of the O w nership, M anagem ent, C ir­
culation, etc., re q u ire d by th e A ct of Congress of
M arch 3, 1 9 3 3 , o f th e N o r t h w e s t e r n B a n k e r ,
pu b lish ed m onthly a t Des Moines, Iow a, fo r O ctober
1, 1940.
1. N am e of P u b lish e r:
Clifford De P u y , Des
Moines, Io w a. A ssociate P u b lish e r, R . W . M oor­
head, D es Moines, Io w a. E d ito r, H e n ry H . H ay n es
Des Moines, Iow a.
2. O w ner, Clifford D e P u y , Des Moines, Iow a.
3. T h a t th e k now n bondholders, m ortgagees and
o th er secu rity holders ow n in g or h olding 1 p e r cent
or m ore of to tal a m o u n t of bonds, m ortgages, or
o th er secu rities are : N one.
R. W . M o o r h e a d ,
A ssociate P u b lish e r.
S w o rn to an d subscribed before me th is 1 st day
of O ctober, 1940.
H en ry H . H a y n es,

(S ea l)
N o tary Public.
(M y commission expires J u ly 4, 19 4 2 .)

G e o r g e L a M o n te a n d S o n ...................................
L a m s o n B r o t h e r s a n d C o m p a n y ....................
L e s s i n g A d v e r t i s i n g C o m p a n y ........................
L iv e S t o c k N a t io n a l B a n k , C h i c a g o ..........
L iv e S t o c k N a t io n a l B a n k , O m a h a .............
L iv e S t o c k N a t io n a l B a n k , S io u x C it y . . .

21
31
73
65
46
54

M
M c G u ir e , W e lc h a n d C o m p a n y ...................... 28
M e r c h a n t s M u tu a l B o n d in g C o m p a n y . . . 72
2
M e r c h a n t s N a t io n a l B a n k ................................
M in n e a p o lis M o lin e P o w e r I m p le m e n t
C o m p a n y .....................................................35 to 42
M u r d o c h , D e a r t h a n d W h i t e .............................. 26
N

N a t io n a l B a n k o f W a t e r l o o ............................. 67
N o r t h e r n T r u s t C o m p a n y ................................... 62
N o r t h w e s t e r n N a t io n a l B a n k a n d T r u s t
C o m p a n y ................................................................... 50

O
O m ah a N a tio n a l B a n k

J lo A A J & it G o A t
Our policy provides a m axim um
assessment of 2 */2 % iQ Zones
One and Two— and 3 */2 % in
Zone Three (W estern Iow a).

Hawkeye Mutual Hail
Insurance Association
Carver B ld g .

F ort D o d g e, Iow a

19

W r i t e for fu ll p articulars about the N ew 1941 W esslin g B a n k P u b lic ity Program ________________
D . R . W E S S L IN G , P R E S ID E N T

^A/[oinz±, Liovna
Northwestern Banker Novem ber 1940


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

74

IN THE DIRECTORS' ROOM
Oh, Yeah?
“Do you know th e definition of a
tru e lover of m usic?”
“No—w h a t is it?”
“A tru e lover of m usic is a m an who,
w hen he h ears a clear, lilting soprano
voice com ing from th e bathroom , p u ts
his ear to th e keyhole.”

Daily Grind
A Georgia negro evangelist w as giv­
ing a vivid description of hell.
“D ere w ill be w eeping and g nashing
of teeth, b re th re n and siste rn ,” he
shouted.
“Glory be, d at lets me out,” cried an
old w om an on th e fro n t seat, “ ’cause
Ah ain ’t got no te e th .”
“T eeth!” scream ed th e dusky p reach ­
er, “teeth! D on’t you believe d at for
one m inute, Sistah Jackson. T eeth is
gw ine to be fu rn ish ed free of charge
by th e m anagem ent.”

Too Long
“The new law m akes you w ait five
days before you m a rry .”
“B ut th a t’s all rig h t.”
“All right? Say, how w ould you like
to stare at a gun for five days?”

Peep Peep
Cop—So you do bird im itations, eh?
Crook—Yeah. I w as ju st doing a lit­
tle robin.

Enough for One Trip at Least
S ultan (buying lim ousine)—Is th e re
plen ty of leg room in th is car?
Salesm an—Yes, th e re ’s room for
about ten pairs.

Fine and Dandy
She—Do you know th e technique of
pettin g , big boy?
H e—W ell, I have a ro u g h idea.
She—Fine, th a t’s th e technique I
like.

Night Life
“My, isn ’t a n ig h t club a g re a t place
on a ra in y n ig h t? ”
“You said it! Stay outside and get
w et and come in and get soaked.”

One W a y
F irs t W ife—W ell, I ’ve finally found
th e w ay to m y h u sb an d ’s heart.
Second W ife—W as it th ro u g h his
stom ach?
F irs t W ife—No. T h ro u g h m y detec­
tive agency.
Northwestern Banker

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

Novem ber 19W

Shocking!
The dear v icar’s wife had ju st died,
and in consequence he w ished to be
relieved of his duties for the week-end,
so he sen t th e follow ing m essage to
his bishop:
“I reg ret to inform you th a t m y wife
has ju st died, and I should be obliged
if you could send me a su b stitu te for
th e week-end.”

Dry Country
The m ayor of a tough border tow n
w as about to engage a preach er for
the new church.
“P arson, you a re n ’t by any chance a
B aptist, are you?”
“No. W hy?”
“Well, I w as ju st going to say th a t
we have to hau l our w ater tw elve
m iles.”

A utom obiles p ro m in en t on the curb.
Edison light. A irplanes com ing down
consistently. E lev ato rs fluctuating tr e ­
m endously, w ith sudden ups and
downs. Safes and g rand pianos are
heavy. Mock tu rtle soup bullish. Red
flannel u n d erw ear off. M ountain ra il­
roads on th e upgrade. P a te n t cigar­
ette lig h ters uncertain. M any ru n s in
silk stockings lately. Suspender b u t­
tons weak.

Oil's W ell
T he cutie in th e ro ad ster w hirled up
to th e filling statio n and dem anded:
“I w an t a p in t of red oil!”
The a tte n d a n t gasped, “A p in t of red
oil? A re you crazy?”
“Of course not!” she continued. 'My
tail lig h t’s out!”

Time Out
She—W h at shall I o rder for you to
d rin k w hile y o u ’re w aitin g for me to
dress?
He—A case of Scotch and a case of
gin.

A Tough One

Not So Crazy

F ro sh —I ju st bro u g h t hom e a skunk.
R oom m ate—W here ya gonna keep
him?
F ro sh —I ’m gonna tie him u n d er th e
bed.
Roommate-—W h at about th e smell?
F ro sh —H e’ll ju st have to get used to
it like I did.

“You h av en ’t brain s enough to come
in out of the ra in !”
“Haw, haw , th a t proves I ’ve tw ice
as m any brain s as you have!”
“How com e?”
“It a in ’t ra in in ’.”

Maybe on Sunday

“I called on a little blonde last eve­
n ing and gave h er ju st one of m y fa­
m ous kisses.”
“A nd w h at did she say afterw ard ?”
“Good m orning.”

“Hello, M ary Louise, w atcha doing
S atu rday n ig h t?”
“I gotta date.”
“A nna S aturday after th a t? ”
“I gotta date.”
“A nna n ex t S atu rd ay ?”
“G otta date.”
“Good gawd, wom an, doncha ever
tak e a b ath ?”

And W h at Kicks!
“W h a t’s th e biggest liquor container
you ever saw ?”
“The Yale Bowl. It holds thousands
of q u arts.”

News of the Stock Market
S kirts high and consistently sold
short. Tabloids low and gyroscopes
steady. Razor tran sactio n s sh arp d u r­
ing th e p ast week. Scotch strong.

Came the Yawn

Cold Turkey
A rctic E x p lo rer—It w as so cold
w here we w ere th a t th e candle froze
and w e couldn’t blow it out.
Second E x p lo rer — T h a t’s nothing.
W here we w ere th e w ords came out
of m ouths in pieces of ice, and we had
to fry them to see w hat we w ere ta lk ­
ing about.

Too Tired
He—If y o u ’re feeling tired you ought
to sit on m y lap.
She—Yes—b u t n o t if I ’m feeling
good and tired.

More Than 100 Different ALLEN WALES Models
More Than 400 Distributing Points in U. S. A.
More Than 600 Percent Increase in Sales
In The Past 6 Years
These Figures Are Of Importance To All
Users of Adding Machines
Manufactured Since 1903 ALLEN WALES
Machines Are Recognized For Their
ACCURACY— SPEED and DEPENDABILITY
Models Are A vailable For Every Type Of
Business Covering The W idest Possible
Range of Requirements

Our Low Priced
Counter Machine

Machines Are Priced From $75.00 And Our Nearest A gency Will Be Glad
To Let You Try One Without O bligation—Telephone Them or Write Us

ALLEN WALES ADDING MACHINE CORPORATION
4 4 4 M adison A v en u e, N ew York, N. Y.
SALES A N D SERVICE IN 4 0 0 AM ERICAN CITIES A N D IN 4 0 FOREIGN COUNTRIES

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

On November 1, 1940, this bank started its 66th year . . . thankful
that it has been its privilege to ” grow up” with Iowa . . . striving to be
worthy of continued leadership in banking.
Th is Bank credits much of its growth to the friendship and good-will
of

the Banks and Bankers of

Iowa.

In formulating policies, our

foremost consideration always
is to merit the continuation of
that friendship and good-will.

io w a - d e s

M o i n e s n a t io n a l
& Tr u s t C o m p a n y

M em b e r o f The


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

Fed era I D e p o s i t Insurance

C o rp o r a tio n

bank