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The Outlook for Cattle Feeder Loans —Survey, Pages 14, 15 Nebraska Bankers Convention— Page 63 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis WILL ROGERS, JR., AND NATIONAL C IT rS ROWLAND HUGHES— Page 5 OFFICERS Ja m e s E. H a m il t o n Chairm an E x ecu tiv e Com m ittee S. E. C o q u il l e t t e Chairman o f the Board J o h n T . H a m il t o n II, E verejtt C. P r a t t , F red W . S m i t h , Cashier Vice President R e g in a l d B . F igge , M a r v in R . S e l d e n , Vice President N . J. D autrem ont, L . W . B r o u l ik ÍÍ Vice President ¡an: 111 Asst. Cashier R obert A . H a h n , P eter B a il e y , r,JftI'll, I-.'. i;iiMifi,I(1¡n /M V ictor W . B r y a n t , Asst. Cashier A. E . L i n d q u is t , J r . Asst. Cashier Vice President R. W . M a n a tt, • t e C. F. P e r e m s k y , Asst. Cashier Vice President R f lp J . E . COQUILLETTTE, Vice President President YOU ARE INVITED to hear The Merchants National Hour over WMT, 9 to 10 each Sunday evening . . . an outstanding pro duction used to pro mote banking in Iowa. Vice President Asst. Cashier S. J . M o h r b a c h e r , W . F. V o m a c k a , Vice President Asst. Cashier TRUST D EP AR TM EN T G eorge F . M il le r , O. A . K e a r n e y , Vice President R . D. Br o w n , Trust Officer C r a ig H u s t o n , Trust Officer Asst. Trust Officer •‘-’ill/. *" * ' /¿ I M , e G rämt W ood • Iow a’s Bountiful Harvest soon will be encircling the globe. For many years Hawkeye crops have earned for Iowa the title, “ Bread Basket of the W orld.” Cedar Rapids, where thousands of box cars of grain are processed each year, is the grain capital of the world. 1881 The Merchants National Bank has been serving the middle west. Since An account here guarantees you prompt and accurate service on all your grain drafts and other items. Utilize our nationwide service with all major grain markets from the grain center of the world. THE Merchants National C E D A R R M em ber Federal https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A P I D S , I O W bank A D eposit Insurance Corporation No. 784. Northwestern Banker, published m onthly by Northwestern Banker Company, at 527 Seventh Street, Des Moines, Iowa. Subscription, 35c per copy, $3.00 per year. Entered as Second Class M atter January 1, 1895, at the Post Office at Des Moines, Iowa, under A c t of M arch 3, 1879. 3 That’s a gun worth owning! https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis In any set of circumstances fine appearance correctly combined with sub stantial utility never fail to earn respectful approval. Check papers are no exception. The quality-look and feel of La Monte Safety Papers have long been recognized in the Banking world. Both in this country and abroad these fine papers have provided bankers not only with maximum safety but also with a well understood advertising advantage. W hy not ask your lithog rapher to show you samples or write us direct. A Check Paper All Your Own Thousands of banks and many of the larger corporations use La Monte Safety Papers with their own trade-mark or design made in the paper itself. Such i n d i v i d u a l i z e d check paper provides maximum protection against both alteration and counterfeiting—makes identification positive. THE WAVY LIN ES ® ARE A L A M O N T E TRA D E-M A RK Northwestern Banker, November, 1952 4 V Split-second trading! That’s the kind of service you get when you deal with the Bond Depart ment of The First National Bank of Chicago — whether your trade is in thousands or millions! Modern communications, streamlined meth ods, and more than 89 years of experience in handling bonds make it possible for us to offer you the services of a primary market in govern ment securities. We carry a substantial position in treasury bills, notes, and other short-term government issues in which banks and corporations are prin cipally interested. Also, we maintain markets in the longer-term government issues and in state and municipal bonds. Take advantage of all the services we offer to correspondent banks. In addition to our Bond Department, these include . . . Complete Clearing and Collection Service • Rapid Router Service • Complete Foreign Banking Service Loan Participation • Travelers Checks • Operational Procedure Surveys • Assistance in Handling New Types of Loans • Wire Transfers • Safekeeping Service Bank Remodeling and Modernization • Public Relations & Advertising • Credit Information • Correspondent Conferences • Assistance in Special Events BOND DEPARTMENT Vice-President Vice-President Vice-President Jo h n H . G r ie r Vice-President H a r o l d J. S c h l ü t e r Asst. Vice-President L e w is M il l e r Asst. Vice-President G eorge B. W endt L e r o y F . W i n t e r h a l t e r Assistant Cashier Assistant Cashier P . A l d e n B e r g q u is t Assistant Cashier Jo se p h A . Sm o le Assistant Cashier S am u el S achnoff Assistant Cashier P h il ip M . H is s A u s t in r Jenner J a m e s P. F e e l e y The officers of our Bond Department are un usually well equipped —in both experience and facilities —to assist you and corporation execu tives with investment programs. All of the services of the Bond Department are at your disposal. Contact us by telephone, tele type, or telegraph —at our expense. For direct connection, use these numbers: Long Distance 92, 93, 155, 313. Teletype CG 987. E d w a r d E . B r o w n , Chairman of the Board J a m e s B . F o r g a n , Vice-Chairman H arold V. A m berg, Vice-President H omer H ugo J. L i v i n g s t o n , President A. A n derson, \ ice-President W alter H IVÎ. H erbert e im a n n , I ice-1 resident P . S n y d e r , I ice-1 resident The First National Bank of Chicago D earborn, Monroe and C la rk Streets MEMBER FEDERAL DEPOSIT N ort hwestern Banker, November, 1952 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis INSURANCE CO RPO RATIO N Building w ith Chicago since 1863 a . 5 ftv a r E DES MOINES Oldest Financial Journal West of the Mississippi T h e follow ing letters are from N orthw estern Banker readers. Your views and opinions on any subject are w elcom e in this column. "Real Progress" “ Our resources have increased about 1^ per cent since January 1, 1952, and now stand at $8,500,000. Work is progressing favorably on our new building, it now being about half completed and should be ready for us soon after January 1, 1953. It will provide more than twice the space we now have and is in a more accessible location, where we will provide off-street parking for about 40 cars. Our new facilities will per mit the handling of considerable more vol ume in all departments.” B. F. McGee, Vice President and Cashier, Northwest Bank and Trust Company, Daven port, Iowa. • 57th Year > N o. 784 IN THIS NOVEMBER, 1952, ISSUE EDITORIALS Across the Desk from the Publisher................................................-......... FEATURE ARTICLES Dear Editor ................................................................................................................. j? On the Cover................................................................................................................. Frontispiece— H unter’s Dream ............ .................. — ........... ......... ................ U The Outlook for Cattle Feeder Loans............................................................... ...... .......A N o r t h w e s t e r n B a n k e r Survey 14, 15 W h a t North Dakota Bankers A re Doing for Young Farm ers........... ................................................................ ...... H arris S oren sen 16 “ Community Prosperity Depends on Good Land Use by Vou Farm ers” ....... ..............-.................. -.......... B. J ■ Stein au er 17 How to Make an Oil Loan— Part 2............................. D. Clayton A rnold 18 Financial Ad Men Meet— Story and Pictures...........Clifford D e P u y 19 Seen at the A B A Convention— Pictures........-................--------20> News and Views of the Banking W orld.............. -......... B en H aller, Jr. P2 Bankers You Know— Iredell K. Johnston ................................................. M Changes at National City Bank...------- --------- ---- ------ -------- ------- j. Savings and Mortgage Regional in Minneapolis, November 10-11.... 41 BONDS AND INVESTMENTS "Vacation Report" “ Here’s some information from our bank. Clyde R. Crawford, a local young man, is on our staff as teller and bookkeeper. “ I have just returned from a short vaca tion through southern Illinois, Kentucky, Tennessee and the Smokies. Also, I toured Rock City atop Lookout Mountain. It is (Turn to page 6, please) ON THE COVER The 66th annual convention of the Iowa Bankers Association brought many distinguished personalities to Des Moines and two of them are shown in the exclusive picture ap pearing on the cover of this issue of the N o r t h w e s t e r n B a n k e r . At the left, in the cover photo, is Will Rogers, Jr., publisher of the Bev erly Hills Citizen, Beverly Hills, Cali fornia, and son of America’s most celebrated humorist, Will Rogers. At the right is Rowland R. Hughes, vice president of the National City Bank of New York. Mr. Hughes is re nowned in banking and business cir cles as one of the foremost authorities on federal taxes, especially the excess profits tax as it applies to banks. He is chairman of the A.B.A.’s “ Special Committee on Excess Profits Tax.” For complete convention report and pictures, see page 77, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Business Loans Continue to Expand........................... Raym ond T rig g er 43 INSURANCE From $0 to $75,000 of Annual Premiums in Six Y ea rs......................... ..... Cam pbell J. Tellman 47 STATE BANKING NEWS Minnesota News ...................................................................-.......-............................. Twin City N ew s................................................................................................. South Dakota N ew s................................................................ -.......-........................ Sioux Falls N ew s.............................................................................................. North Dakota N ew s.........................................................................-................ -....... Nebraska Bankers to Meet in Lincoln November 10-11— Conven tion Program ...........................................-............................................................. Your Hosts at Nebraska Convention........... ............ .......... ................ — St. Joseph N ew s................................................................................................ Lincoln News .................. .......... .............-.............................. .......-..... .........— You W ill See Them at the Nebraska Bankers Convention........... Omaha News .....................................................-----................ ;..............- ...... H arry Lekwa Named Iowa Bankers Association President— Convention Story and Pictures.................. .............................. Ben H aller, Jr. Des Moines N ew s.............................................................................................. In the Directors’ Room............................................................................................ Conventions ............................................................- ........... -............................. - - - - - Can Misused Funds Be Recovered from Life Insurance Proceeds. Legal Questions and Answ ers.......................................-.................................. j>4 07 08 61 63 66 69 71 77 °6 63 63 64 N O RTH W ESTERN BANKER 527 Seventh St., Des Moines 9, Iowa, Telephone 4-8163 RALPH W. MOORHEAD Associate Publisher Publisher MALCOLM K. FREELAND BEN J. HALLER, JR. HENRY H. HAYNES CLIFFORD DE PUY Editor Managing Edit or Advertising Director ELIZABETH COLE HAZEL C. STEPHENSON MARY LOU MURPHY Advertising Assistant PAUL W. SHOOLL Field Representative Auditor SAM A. BARNHART Field Representative NEW YORK OFFICE Frank P. Syms, Vice President, 505 Fifth Av e ., Suite 1806 Circulation Department AL KERBEL Field Representative MUrray Hill 2-0326 DE PUY PUBLICATIONS: Northwestern Banker, Underwriters Review, Iowa-Nebraska Bank Directory. Northwestern Banker, November, I?5? 6 DEAR EDITOR IBMm (Continued from page 5) rather dry through this section of the Unit ed States.” J. E. Henson, Executive Vice President and Cashier, The Louisa C o u n ty National Panic, Columbus Junction, Iowa. "Greatly Interested" “ I was greatly interested in the loan cases which were described in the October issue of the N o r t h w e s t e r n B a n k e r . I believe you have something there that will capture the interest of every banker who reads your magazine. “ Why don’t you make this a monthly fea ture of the N o r t h w e s t e r n B a n k e r ?” C. L. Kimberly, Cashier, E x change State Panic, Collins, Iowa. "Excellent Article" Is YOUR business suffering from lack «I working capital? These days, many business headaches are due .o ,he conditions beyond managements control. operating memo "^ tai,' TH£ DUK° f Wf mztnoem “ I want to compliment you on the excel lent article on loan applications in the Oc tober N o r t h w e s t e r n B a n k e r .. I think you handled the application writeups in an impressive manner. “ Please send me three additional copies of this issue. Thanks.” William G. Murray, Head of Department o f Agriculture and Mechanic Arts, Iowa State College, Ames, Iowa. To Travel Iowa Gilbert J. McEwen, who has been associated with Harris Trust and Sav ings Bank. Chicago, since 1936, on No vember 1 became associated with the • tn in i C e le b r a tio n tS ¿zep WK «Ml Un fSp“ I tfe* Wk#I - Amiri* ; Lie mar* j m*. I likig0 à ■/yTowRtxc« a. sionr ision trued than rr to as«red aarpe'sk jr which JjP of 17 aore net, inis, this registered ^ „ „ « . n w i - e W -r « — 37 Drumm Street, See ? ™ " ^ “ s£ , 00 N. lo Soll« St., C h i c a g o ^ <|m > .53. Northwestern Banker, November, 1952 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis « « « - 7 fta. Yo* S.N .Y. R. L. Thornton, left, chairman of the board, and Milton Brown, presi dent of the Mercantile National Bank at Dallas, can look back with smiles on the bank’s history as they celebrate its thirty-sixth anniver sary. Mr. Thornton was a member of the original firm of Stiles, Thorn ton, and Lund, which opened its doors October 14, 1916. Mr. Brown joined the organization just a year later as assistant cashier. They are shown above looking at an early statement of condition, dating back to the bank’s first decade. New practical concept of Drive-in Banking gives faster service, attracts new accounts! H ere a re fust a few of th e a d v a n ta g e s you get w ith th e n ew M osler Electric Drive-in W indow at no e x t ra cost! o o New “ easy-reach” convenience for customers. o o o o Full vision for teller and customer. New fully automatic “ Shuttle” for faster transactions. Counterbalance “ Shuttle” lid makes access to deposit receptacle effortless. Push-button operates “ S h u t t l e ” which retracts automatically after 15 seconds. Operates manually in case of power failure. N ew flush counter gives greater working space and provides practical working area under counter. Ventilating ducts for warm or cool G air make unit comfortable . . . pre o o vent frosting. © Easier and less expensive to install. Convenient right or left-hand cash drawers. New trouble-free speaker which is movable to suit convenience of operator. M osler Flush Type Drive-in W indow, N o . 950. Gives you all the advantages o f the new B ay T y p e W indow, shown at left. Designed for in stallation where bay projection is not desired. Electric push-button revolutionizes operation and at no extra cost. You're looking at the newest, most advanced electrical drive-in window ever designed. Examine it closely. From the ou tsid e first— the way a cu sto m er sees this new Mosler unit. Notice the new bullet-proof window that enables full vision of all transactions . . . the outside speaker . . . and the new push button-controlled “ Shuttle” that slides out and in, completing transactions with new speed and safety— at driver’s arm-level. Then, take a look inside. Notice the simple control which works at the merest touch of your teller’s finger . . . the wide, work-easy counter . . . movable speaker . . . and handy cash drawers. See how all this adds up to faster, more efficient service for y o u r bank. It’s easy to understand, isn’t it, how this new Mosler unit can give you all the proved advantages of drive-in banking— and a lot more? For such conven ien ce builds even more good will, attracts more new accounts. And such transaction speed gives you even greater relief from congestion inside the bank . . . even more help in solving traffic and parking problems. Why wait any longer for that drive-in win dow yo u 'v e been considering? The new M osler unit can be installed with /ess ex pense and m ore speed than ever before. Get full details! Mail the coupon, today! IF IT’S MOSLER . . . IT’S SAFE M o d er S a f e t y W orld’s largest builders o f safes and bank vaults . . . M osler built the U.S. G old Storage Vaults at Fort K n ox and th e fam ous bank vaults that w ith stood the A to m ic B o m b at Hiroshima https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis T h e m o s l e r s a f e Company Dept. N B -11, Ham ilton, Ohio Please send me complete information about the new Mosler Electric Drive-in Window. N A M E ............................................................................................................................... POSITION....................................................................................................................... NAME OF B A N K ......................................................................................................... ADDRESS........................................................................................................................ C IT Y .............................................................. ZO N E ............. S T A T E .......................... Northwestern Banker, November, 1952 8 Uniquely Qualified bank’s correspondent bank division. He will assist in serving the Iowa cor respondents of Harris Trust and will travel in this territory in the develop ment of additional business. A 1952 graduate of the School of Financial Public Relations at Northwestern Uni- to m e e t y o u r sp e c ia l n eed s G I L B E R T J. M c E W E N In correspondent bank division versify, Mr. McEwen for the past year and a half has served as manager of his bank’s business development de partment. Qualified by experience . . . since 1853. Qualified in size . . . largest bank in Wisconsin; long high on the list of the hundred largest from coast to coast. Qualified by complete facilities and unparalleled statewide contacts . . . uniquely qualified for complete and helpful service that often goes far beyond the ordinary limits of mere routine efficiency. BANKS AND OTHER CUSTOMER First Wisconsin National Bank SERVICES DIVISION George F. Kasten - V ice President Robert A. Zentner - V ice President ü . Wesley Correll - V ice President Donald A. H arper......................... ............ Assistant V ice President John G. Topp ................................ ............ Assistant V ice President L. J. Smotherman......................... ............ Assistant V ice President Mark A. Rusch - Assistant Cashier OF CH A RTER N o. MILWAUKEE 64 / Established 1853 Member of the Federal Deposit Insurance Corporation Nort hwest ern Banker, November, 1952 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Tulsa Promotion The board of directors of the First National Bank and Trust Company of Tulsa, have advanced J. Lesley Baker, assistant vice president, and comp troller to the position of vice president in charge of operations. Mr. Baker will fill a vacancy caused by the recent death of Frank L. Alban. For the past twenty-four years, Mr. Baker has been associated with the First of Tulsa, chiefly performing audit and control duties. He is past president of the Oklahoma Association of Auditors and Comptrollers, and a member of the Comptrollers Institute of America. Old-Timers Meet More than 825 old-timers and pen sioners of the Continental Illinois Na tional Bank and Trust Company of Chicago last month attended the 15th annual dinner of the bank’s 25-Year Club. It was the club’s largest turn out. Of the 215 pensioners who came to the party, John J. Brugman, living in Medford, Oregon, traveled the greatest distance to be present. Walter J. Cummings, the bank’s board chairman, welcomed the group and Louis H. Hammerstrom, a vice president of the bank, served as toast master. 9 Blown out by Mr. Edison and friends! R e a d w h y t h e m i r a c l e o f u n iv e r s a l e le c t r ic l i g h t c o u ld n o t h a v e h a p p e n e d w i t h o u t A m e r i c a ’s B a n k s i d e a made the kerosene lamp obsolete. But it has taken billions of dollars to re place it. America’s banks put up many mil lions, and the story goes like this. After M r. Edison and his private backers proved the new incandescent lamp practical, progressive men all over the country got the notion that electric light could be sold cheaply to all the people. From the first, the job was too big— too costly- for any individual to tackle. So groups o f citizens (capitalists, if you will) got together and formed light and power companies. Basically private capital has always backed any promising venture. But as the industry expanded even the most prosperous compa nies lacked enough hard cash for generating more power, stringing up miles of new wire and delivering current to millions o f new con sumers. So they went to the nation’s banks for short-term loans. They got their money. In less than 50 years, American ingenuity teamed up with money supplied by the general public, commercial banks, and other financial institutions— put the kerosene lamp on the same museum shelf with the tallow candle. Exceptional? N o. Y ou can see the same pattern in just about every U . S. industry. From the beginning, U . S. citizens have put money in banks. All together this money amounts to quite a sum in any bank, and it’s the bank’s job to put it to work. Usually, progress means profits, so banks have always competed with one another to put money to work in growing industries. A s long as competitive banking and free enterprise live under the same laws, the re sults will continue to be more men and women at work, profits for both manufacturer and investor and better living for every man, woman and child in the nation. M r. Edison’s light is a good example. There are many others, and there will be many more. Chase National Bank is proud o f the part it is playing in American progress. O ne TH E C h a s e N A T I O N A L B A N K OK T H E C IT Y O F N E W YO R K (M ember Federal Deposit Insurance Corporation) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis One of a series of advertisements being published in New York City newspapers and national business magazines N orthwestern Banker. November. 1952 10 ticularly risk assets, are increased. Complacency with respect to the present capital structure plays into the hands of those who would like to see our entire banking industry brought under one cen tral control. Ownership and control go hand in hand ; it is sobering to realize that no other in dustry operates on such a thin margin of owner equity as does the banking industry. It is my firm conviction that the only way to preserve the dual system of free enterprise banking is to make our banks so strong that the advocates of Govern ment operation and control will find few sup porters. f- J “ The position of the Federal Deposit Insurance Corporation with respect to a bank’s capital needs has sometimes been misunderstood. Our persistent concern with strengthening- the capital structure of banks has not been motivated by selfish rea sons. Entirely aside from any consideration of > the safety of the deposit insurance fund, it is our opinion that stockholders would find it to their own interest to work toward a stronger capital position. Across the Desk From the Publisher ;> , (D&oa^ JL. ¿ oaL (JdjdJc : •-V- ' * J. *■-*’ D irector, F ed era I D eposit (itén.vanee Corporation, W ashington, D. C. In a recent discussion of the low capital ratio o f banks, you emphasized that from a selfish stand point o f the stockholders, they should be inter ested in providing adequate bank capital, since in any financial difficulty in which a bank may become involved, it is the stockholders who “ must bear the initial losses.” The N o r t h w e s t e r n B a n k e r certainly believes in strong and sound banks, but it does not agree, Mr. Cook, with some of the methods used by your representatives in telling bankers what they should, and should not, do about running their banks or where the buildings should be placed. W e believe that the Federal Deposit Insurance Corporation is doing a good job in its over-all picture, but some of your men have not been the kind to “ win friends and influence people.” In discussing fhe question of adequate bank cap ital, you said, “ The growth in bank assets and deposits in the last decade has brought the cap ital ratio to a dangerously low level. From 1934 to 1951 the ratio of capital accounts to total assets declined from 13.2% to 6.7%, meaning the equity of bankers in their banks is only about half what it was 18 years ago. “ Sound banking requires that the capital struc ture of banks be strengthened as assets, and parNorthwestern Banker, November, 1952 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis u This conviction is reinforced by the consideration that whenever a bank becomes in volved in financial difficulties, for whatever rea son, it is the stockholders who must bear the initial losses.” The N o r t h w e s t e r n B a n k e r agrees wholeheart edly with your statement that we must do every thing we can to preserve the dual system of bank ing, and make our banks so strong that there will be no need nor desire, nor supporters of the idea of government operation and control of banking. Tn the meantime, Mr. Cook, the F.D.I.C. must not become so arbitrary that it in turn assumes more powers than it is rightly entitled to. over the member banks of the nation. (DsuaA, (Rjodnsn^ YYL. J jd c tm L : President, N orthborou gh N ation al Bank, N orthborough, M assachusetts In discussing the lending policies for country banks, you expressed the opinion that, “It would seem as though there were times when the lend ing policy of individual banks just grows like Topsy and not as the result of any definite plan.” There must be, Mr. Leland, a definite plan and a sound lending policy for country banks or for any other banks if they are to stay in business, and render the greatest possible service. Liquidity, as you have mentioned, “ must be Number One on our list of elements in a sound lending policy.” Then, of course, the stockholders are entitled to a reasonable return o f dividends and a gradual increase in the value of their holdings. Another point on which we thoroughly agree is that a bank should set aside a proper propor- 1 A n tion of its assets, so that borrowing customers may obtain various types of Joans “ and at rea sonable rates and not be forced to patronize fed eral or private high rate lending agencies.” Every bank is a semi-public institution, and we further agree with you, Mr. Leland, when you say, “ A banking- institution, regardless of size, should not exist for the solely selfish reasons of serving de positors, stockholders, borrowers or management alone. It should serve them all, but only as a means of playing a part in the social and eco nomic development of our democratic society as into a strait-jacket of economic control. It is your belief that, “ We have had enough ex perience with 90% of parity price supports to know that rigid price supports at this level can cause serious difficulties except in years of short crops or high demands. The last two years have seen an aggressive campaign on the part of the Federal Government to put Americans into a strait-jacket of economic controls. Price controls are one of the major aspects of this plan. They would substitute ration coupons for free choice on the part of consumers. They would substitute a whole.” subsidies in lieu of prices, and all sorts of controls In the lending policies for country banks, liquidity must always be the first test for sound banking, plus the fact that all loans, which are sound and worthy of consideration, should be made by banks rather than by some government agency. If loans are sound, the banks can make them ; if they are unsound, no one should make them, not even the Reconstruction Finance Corpo ration. by federal agencies over individual citizens for access to markets and freedom to produce for (bstWt. dllwL S. Jilimu : President, A merican F arm B ureau F ederation, W ashington, D. C. As both political parties debate the ever-present “ farm question,” it is interesting to realize how legislation enacted during a depression to help a particular group of citizens— in this case, the farmers— tends to become permanent even though the depression period has passed. From 1938 to 1952, the parity percentage has increased from 52% to 90% and during the cur rent political campaign, there have been those who are advocating 100% of parity. The original parity price was computed on the formula based on pre-W orld W ar I relationship of prices farmers received for what they pay. Congress has already extended the general war time 90% of parity price supports through the 1954-1955 crop season. As one economist says, “ Once more is repeated an old story of how the seed of price raising leg islation once planted takes root, flourishes and spreads its branches. W h at started out as an emergency program to cushion the collapse of farm prices during the depression, has been grad ually transformed into a permanent program of price supports with a constant upward bias.” Here are the parity figures for recent years— 1928— 5 2 % to 7 5 % parity 1941— 8 5 % of parity 1942— 9 0 % of parity 1952— 10 0 % of parity?? The question, Mr. Kline, is whether we should allow farm products like other products to be subject to the law of supply and demand, or whether as you put it. “ Americans are to be put https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis those markets.” W ith our parity program continued into 1955, there will be no change unless new legislation is passed by our next Congress. Do the farmers of America want to continue to have the encroachment of the management of thenbusiness increased or decreased by the Federal Government, or do they want to follow the law of supply and demand in the open markets of America ? (DsuaA, (Dodjfv diahlmL Mjoddn&A,: Presiden t, U n iversity o f M ichigan, A nn A rb o r When you spoke before the School of Banking at the University of Wisconsin, you emphasized the many problems facing America today, and how universities and business institutions, and in this case banking, were trying through increased studies about economics, government, business, and world trade, to make better bankers who in turn are facing the complex problems of today. You put it very succinctly when you said, “ Can we continue our growth and carry the heavy burdens? The odds are on our side. Your enter prise is one of the good signs. We live in a tightly meshed, interconnecting society. I f one part is changed, all are affected. We must have experts in each of the thousand specialties, but these experts must have a mature understanding of the whole.” Change is a part of everyday life, and cer tainly there lias been a great change in banking in the past 20 years. Changes in the future will be met more intelligently, and more effectively, by those bankers who give time and thought to their own problems by attending the sessions held each year by the School of Banking at the Uni versity of Wisconsin and at Ruttgers and other similar schools. It is a healthy and significant trend towards better banking in America. Northwestern Banker, November, 1952 12 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis High on our list of the things we have to be thankful for... * is the large and ever-growing list of CORRESPONDENT ACCOUNTS it is our privilege and pleasure to serve. focvcid 0p % te*td ù f 'S cu t^ CENTRAL NATIONAL BANK and Trust Com pany D ES m mi MOINES, IOWA Northwestern Banker, November, 1952 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 14 j Outlook for t itillo Feeder Loans Bankers Tell About the Results They Think Their FarmerBorrowers Will Obtain from Livestock Feeding Operations A NORTHW ESTERN BANKER SURVEY HILE during the past week or two the cattle market has gone somewhat soft, compared to a month or so ago, cattle feeding opera tions will be in full swing this fall and winter, and bankers and farmers will work together as they always have to give the nation its beef. This information was brought out in answers to a survey just completed by the N o r t h w e s t e r n B a n k e r among bankers in cattle-feeding areas in Ne braska, North and South Dakota, Min nesota and Iowa, with bankers giving W their opinion on the question: “What do you think about the outlook for cattle feeder loans this fall?” Because of a few losses experienced here and there a year ago, it is felt farmers will be a little more cautious this year, but with the price of feeders at a lower level and a big corn crop of excellent quality available, feed lots are beginning to fill up. Opinions expressed in this survey are based on market and crop condi tions as of approximately October 15th. The comment reads as follows: Nebraska H. L. BRUNE Vice President N ebraska State Bank South Sioux C ity , N ebraska Demand for feeder loans in our area is about as it was in 1948 and 1949. However, more care is being exercised in acquisition costs than in previous years. Feeder operators are very conscious of high production costs, and a number that fed in 195T are going to sit this one out. Our area has one of its best corn crops, of excellent quality, and with a good sealing price it tends to dis courage some farmers to feed in a de clining market. Our regular good, effi cient feeders will be in, but have been in no great hurry, up to this time. IVAN C . R ILEY President The F irst N ational Bank Fairb u ry, N ebraska CENTRAL MARKET— Arrival at a destination similar to the above stockyards scene completes the marketing cycle so far as the cattle feeder is concerned. Upon the price obtained here depends a great share of the profit, although as one banker says, the feeder has little to say about how much his fat cattle bring, but he can control how much he pays for his feeders at the start— good feeders bought at a low price are pretty good profit insurance. Nort hwest ern Banker, November, 1952 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Cattle feeding as it is carried on in the eastern part of Nebraska has never been a major farm operation. Since the dry years of the 30’s when all cattle operations were severely cur tailed, the first class of stock pur chased for replacement was the cheap er, common to medium grades. These cattle were grown primarily on roughages—grass and hay. Generally, the returns were satisfactory and in more recent years very good. Many of our farmers could not see the advantage in taking the feeder’s risk when they did well by just “growing” the stock. We have encouraged a few of our customers during the past five or six years to feed a few head each year, 12 to 50 head, depending on the indi vidual’s circumstances and ability. In most cases they have made good prof its. This year our pastures dried up earlier by several weeks than we have been accustomed to. Here, like in many other areas, there is forced sell ing due to a shortage of winter roughage. While we have a good corn crop the rapid decline in stock and feeder prices has dampened any optimism of farmers who occasionally feed out a few head. f yr Y A 15 Early last spring it appeared to us that there would be many cattle com ing to market this fall. We encour aged our customers to make a special effort to store more hay, silage and other roughage than usual, thus pro viding feed insurance even if we had short pastures next year-. At the pres ent time it looks like our pastures will be poor next year, due to dry weather. It is our feeling that if a farmer can get 350-450 pounds gain on a 400 pound calf from one fall to the end of pasture season the next year, he FUTURE B EEFSTEAK S Here are just a few of the many purebred Hereford cows will have as relatively few dollars in and calves on the Kuhlman Ranch, at North Platte, Nebraska. The constant develop the animal as a 750-850 pound feeder. ment and improvement in the quality of beef cattle has helped to make cattle feeding Ordinarily we have a good supply of the profitable operation it is today. pasture and hay, and this system pro vides a good market for it. Then if get and, outside of the manure they cattle price on yearlings, and choice our corn crop is good the farmer can got for fertilizer, could have been calves can be purchased for less price use it to finish out his cattle to thenfarther ahead, financially, had they than what fat cattle are bringing. I grade. feel definitely that it is a better year left the corn in the field. This year we encouraged our cus to feed cattle than a year ago. This year we have the best corn tomers who had cattle in pastures to I feel, however, that any cattle pur get them on feed early, either on grass crop, both yield and quality, our coun chased for feeding should be bought ty has ever raised, and with a loan or bring them in to a dry lot. Then with the thought in mind that fat cat get them on an early market. It price of $1.57 per bushel the boys who seems to us that short feds will run didn’t do so well feeding last year are tle next spring and summer may be into trouble particularly as the mar inclined to take the $1.57 for their corn as low as $30 per hundred weight for the best kind. If fat cattle should de keting season for these cattle prog and play it safe. The ones who feed every year will cline to that point or even a dollar resses. Right now the depressing ef fect of grass fed cattle on the market be in again, and I think that about or two lower, those who are buying is being eased as numbers of these half of them have already bought feeders now for $25 or $26 would still cattle are declining. If the market cattle, and at prices from $10 to $15 be able to make a profit. Another strengthens our customers will be a hundred weight under last year’s thing in favor of the feeder this year ready to come in just before the short prices. Rankers in general have had is that the corn has matured properly something to do with this lowered and should have double the feeding feds come in. value of a year ago. Tn view of fall employment through price, because we have all been of the I don’t believe that there will be so same mind and same approach to the out the country, it seems only logical that demand for beef will be good. cattle-feeder loans. Where the bank many farmers in our immediate terri Since feeders can be purchased for was putting out the money, they in tory who will feed cattle this year, considerably less than present fat cat sisted that cattle be bought right be because last year, due to the soft corn, almost everyone fed a few head and tle prices, the margin for up grading fore they would o.k. a loan on them. is good. A good demand for beef As far as prospects for profitable in most cases losses were sustained. Everybody wanted to feed last year, should keep fat cattle prices from skid feeding, it looks to me like they should ding. be good for anything fed for market due to the soft corn situation. We believe the feeders of long expe in the next nine or 10 months. We Taking all things into consideration, rience and ability have seen this op certainly are not discouraging anyone a feeder this year certainly is in a portunity and have already started from feeding, but would like to see much better position than a year ago. their program a month or two months them get in at a price that leaves ago. As the season progresses the them at least a 50-50 chance to make B. M. DE LAY Cash ier buyer should be thinking more in something. And, after all, the only The D eLay N ational Bank terms of gain rather than margin in time the feeder has anything to say Norfolk, N ebraska making his purchases. Our demand about the price of his cattle is when It is our opinion that the safest buy for loan funds for feeding purposes he buys them. When they go to mar has been about the same as in other ket, he is the seller and the buyer sets on cattle would be calves and year lings to be roughed through the win years. the price. ter and then put on feed in the early spring. It is our further opinion that W. L. B O ETTC H ER G E O R G E T. HEDELUND heavier cattle bought at this time, for Vice President and C ash ie r Vice President a 60- or 90-day feed, would present a C e n tra l N ational Bank W ashington County Bank Columbus, N ebraska rather hazardous operation. The cat B lair, N ebraska As we all know, cattle feeders this tle feeders in our particular area have Last year our corn was of such poor quality that most farmers felt they fall are buying their cattle from $8 within the last two weeks started to had to buy cattle in order to get any to $15 per hundred weight cheaper buy their cattle and we look forward thing out of their corn and, as a con than a year ago. A year ago good to an increased demand in the next sequence, there were days when there feeders were selling within a dollar or three weeks. It seemingly is appar ent, in analyzing the present feeder were more buyers on the rail than two of what fat cattle were bringing, there were cattle in the pens. The and the calves were considerably high cattle market, that the present time law of supply and demand went into er. This year the feeder is buying would be the most logical period in his cattle all the way from $5 to $10 which to purchase light feeders. action and as a result most of them (Turn to page 26. please) paid too much for the cattle they did per hundred weight less than the fat https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, November, 1952 STU D EN TS at the Agricultural Short (’ourse sponsored by North Dakota Bank ers Association last year. In front row, in addition to three students at left are (left to right): Bill Guy, instructor; Peter Nystuen, director of Short Course; Dean Walster, director of the Experiment Sta tion; C. C. Wattam, secretary, North Da kota Bankers Association, and Harris Sorensen, 1952 Short Course state chair man for North Dakota Bankers Associa tion. W hut Arp X o r th thili iUnntjfor Yon tit/ Funds Raised to Send 50 Men to Agricultural Short Course W ritten E specially fo r The N orth w estern B an ker By HARRIS SORENSEN Field Representative The Merchants National Bank & Trust Co. Fargo, North Dakota ANKERS throughout North Dakota for the second consecutive year are lending their support to the Agricultural Short Course program. Last year they actively participated in the establishment of this school at the North Dakota Agricultural College at Fargo, North Dakota. In attendance will be persons who are interested in obtaining further training in the field of Agriculture and who cannot avail themselves of the regular college cur riculum. This year’s program has as its state chairman, Edward Olson, cash ier of the First National Bank of Grand Forks. North Dakota Bank ers Association Secretary C. C. Wat tam is again directing the policy with the help of Franklin Page, cashier of the Bank of Hamilton, and now presi dent of the North Dakota Bankers Association. Last year A. R. Weinhandl, who was then the Association’s president, helped to originate the pro gram under his administration. Within the state, ten district chair men have been appointed to carry out the program within their respec tive areas. They in turn appoint county chairmen to contact banks and obtain scholarships. Often coun ty meetings are called by the bankers to discuss their pledges. Total ex pense of one term is $175, of which the sponsors pay $125. Many banks pledge one or more scholarships indi- B Nerthwe$tern Banker, November, 19SZ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis vidually, while others prefer to join together in the sponsorship. This is often determined by the number of banks in the county and their size. Recipients of the awards will be selected by the local county commit tee consisting of county agents, voca tional agricultural teachers, and other community leaders who are familiar with the applicants. Usually the county agent serves as the chairman of this committee. Bankers are now reminding prospective students to apply either to their county agent or to their local bank. By acting im mediately they will be sure to have an opportunity to qualify for a scholarship. The decision of whether to sponsor the same student for consecutive terms is left to the discretion of the sponsoring banks. However, it is deemed advisable to select a new student if possible in order that more future farmers have an opportunity to attend and see for themselves what the course has to offer. January 5, 1953, will be the date to register on the campus for the next term, according to Peter Nystuen, di rector of short course at the North ' Dakota Agricultural College. This term concludes on February 28th. Ap plication forms and circulars have been sent to all banks for their use. Only one term is being taught this year, although there are a total of four terms in the complete course. When this program was originated last year, the findings of the Kellogg Foundation of Battle Creek, Michi gan, served as a stimulant. During the ten year period of the Founda tion Plan, 1,675 rural youths took ad vantage of the scholarship, and from the records it was found that 85 per cent of those who attended remained on the farm. Several basic purposes convinced the North Dakota Bankers Associ ation executive committee to go ahead with the plan. As an educational event it had a sound foundation. Young farmers would be encouraged to remain on the farm, their interest in fanning as a career would be de veloped, and the subjects taught would equip them with the proper practical and scientific information. Support would also be given to the members of the 4-H and FFA because in many cases outstanding youths from these groups would be selected to receive the scholarships. When 100 students registered at the college for the first term, all con cerned felt that the program was a definite success and that the purposes had been fulfilled. During the year the banks had contributed $6,250 in funds that paid the major expenses of 50 students. Sixty-one banks in the state joined in this activity. One of (Turn to page 20, please) "C om m un ity P rosp erity D epends on Good Land Use B y You F arm ers 99 W ritten E specially fo r The N orth w estern B anker By B. J. STEINAUER President, Bank of Steinauer Steinauer, Nebraska W ELCOM ING guests at the Conservation Field Day sponsored by The Bank of Steinauer on the Robert Pfister farm near Steinauer, Nebraska, is B. J. Steinauer, president of the bank. EING in a strictly farming commu nity our bank has long realized that to survive we would have to have prosperous farmers around us. We have watched the picture of rising costs reducing the returns of the mar ginal and inefficient operators. We saw these poor operators b e i n g squeezed out and the land falling into the hands of large holders. Usually these large holders were people whose methods were not con ducive to community progress. Mean ing that with the loss of a farm fam ily the farmstead was allowed to stand idle while the buildings were either sold off or to fall by their own weight in a few years. The loss is great to the immediate community, the schools, the county, and we think even to the state and nation. Knowing that to prosper ourselves we should try to keep the community populated with small and prosperous producing units (families); we also thought that to survive as a nation the food production capacity of our land must be maintained. So there was no question about the soundness of the idea. Then, too, we have watched the experience of our customers and bor rowers carefully. Frankly, we were amazed at the wide spread in financial progress between the operators whose methods are correct (small percentage wise) and who are inefficient. All these considerations prompted us to do something about it. With the able assistance of Earl J. Cook, Work Unit Conservationist, SCS, B https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis at Pawnee City, Nebraska, and the cooperation of the Nebraska Conserva tion Foundation, Omaha, Nebraska, we set up the Conservation Field Day. Our mission was simply to expose as many farmers as we could to some wholesome ideas about good land use. The farm of Robert Pfister, Stein auer, Nebraska, was selected because this gentleman’s farm is a striking ex ample of just what can be done with a really “steep” farm. By following methods recommended by Soil Con servation Service he has every slope on his farm controlled. When rains fall in a deluge the water is collected in terraces, and walked down grassed “water-ways” to farm ponds or other W A TE R M E LO N furnished by the Bank of Steinauer is enjoyed by guests at the Conservation Field Day. (Photos on this page courtesy of USDA Soil Conservation Serv ice.) safe outlets. Overflow of the ponds is used constructively f o r livestock water supply and garden irrigation. Planning began about 60 days be fore the event. Leaflets were printed by the Nebraska Conservation Foun dation and were distributed individ ually to all our customers and to other nearby bankers and business men. News releases and advertisements were carried in all newspapers in the locality, and free refreshments were offered to everyone. The expense to our bank was not great. On hand for the Field Day were the best “ experts” available to talk about control of soil erosion, grasses, leg umes, fertilizers and all allied mat ters. Mr. Pfister was interviewed and told about his introduction to soil con servation and his experience through the years. Mr. Pfister’s manner was one of humility and simplicity with no bragging or “tall” statements. The 140 men in attendance were genuinely interested, questions were invited and there were many asked. In all, we are satisfied that the Con servation Field Day “paid off” in both public relations and, more importantly for the long pull, in more and better farmers in our community. Of course, it is our intention to promote wher ever and whenever we can the best in farming and feeding methods; also, to attempt to cause those engaged in ag riculture to take advantage of the vast scientific findings made in the past few years to improve their methods of grain and meat production.—The End. Northwestern Banker, November, 1952 18 J Hair to 3laki*Oil Loan W ritten E specially fo r The N orth w estern B an ker By D. CLAYTON ARNOLD Vice President National Bank of Tulsa Tulsa, Oklahma H a rt 2 ( This is the second and concluding installment o f an article written espe cially fo r our readers by Mr. Arnold. Part / appeared in the O ctober issue and covered the econom ic back ground o f oil financing, fundamentals of the oil loan, modern trend in oil loans, qualities o f a sound oil loan and essential inform ation required for these loans?) ROM the'viewpoint of the bank one of the first considerations is an swered by the questions: “Will retirement of the loan be fully independent of the salvage value of equipment, or through forced sale? Further, is there sufficient cushion un der the loan to absorb a drop in the price of crude oil, or other contin gencies? Are there ‘speculative risks’ involved that would jeopardize the loan?” The oil loan must be predicated 4■ on present production only, not on undeveloped acreage. Oil loans are seldom predicated ■ on a one-well security as hazards incident to a one-well loan could cause a complete loss of such security. Although well and well equip■ ment are included under the mortgage, whatever salvage value the equipment may have is excluded in the valuation for oil loan purposes. The loan should be predicated • entirely on the value of the bor rower’s specific interest in future »re coverable oil reserves expected from present production, not from antici pated recovery resulting from planned or future development. 5 6 7 Mechanics of the Loan Assuming all information supports Provided these questions are satis an oil loan the first requisite is a first factorily resolved it is good banking mortgage or deed of trust on the prop to explain general policies, some of erty, along with an assignment of oil which are: runs to the bank. Proceeds will then No bonuses or commissions are be applied in payment of the monthly « charged in obtaining an oil loan; installments and the agreed per cent of the gross income being returned that the bank bears all the expenses to the borrower. Provided there will of preparing valuation reports, drawing of loan papers, and of be an excess, which is usually the case, this is applied on the last maturing having a field representative installments of the loan, in this way check the property and test the accelerating pay out and at the same wells. time increasing the security value of That the bank will expect the property through the final and ■ reimbursement for out-of- most critical months of the loan pe pocket expenses, such as mort riod. The actual mechanics are ap gage tax and filing and recording parent in a hypothetical case. fees. Assume that the value of borrower’s The cost of title opinion is interest in the future recoverable oil ■ usually arranged by the bor reserves after allowance for operating rower with his attorney, and it costs is $100,000. Discounted 50 per is therefore a direct obligation of cent the cash value would be $50,000 (Turn to page 38, please) the borrower. I 2 3 Northwestern Banker, November, 1952 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis IN THE CORONADO G ARD EN are the new officers of F.P.R.A., left to right, L. L. Matthews, first vice president, and president of American Trust Company, South Bend, Indiana; Lucy V. David, secretary, Chicago; Carl A . Bimson, third vice president and executive vice president of Yalley National Bank, Phoenix, Arizona; William H. Hall, president, and vice president of The Detroit Bank, Detroit, Michigan; Rod Maclean, second vice president, and assistant vice president of the Union Bank & Trust Co., Los Angeles; and Preston E. Reed, executive vice president of F.P.R.A. SHOPPING A T T IA JU A N A, M EXICO, just before the jai alai games during the Financial Advertisers convention at Coronado are, left to right, Lester B. Johnson, American Trust Company, San Francisco; Miss Alice L. Foss, Farmers and Mechanics Bank, Minneapolis; and Lyman C. Taylor, Jones & Taylor and Asso ciates, South Bend, Indiana. Financial A d M en M eet By CLIFFORD DE PUY Publisher The NORTHWESTERN BANKER EETING in “sunny” California, where it was “foggy” every morning for a week, the 37th annual convention of the financial experts of America was held last month at Hotel Del Coronado at Coronado, California. About 600 delegates and their wives attended the meeting. The 1953 con vention will be held October 11 to 15 in Detroit, Michigan, with headquar ters at the Sheraton-Cadillac Hotel. Officers and directors of the Finan cial Public Relations Association elect ed for 1952-1953 are as follows: President, William B. Hall, vice president, the Detroit Bank, Detroit. First Vice President, L. L. Matthews, president, American Trust Company, South Bend, Indiana. Second Vice President, Rod Maclean, assistant vice president, Union Bank & Trust Company, Los Angeles. Treasurer, Harold W. Lewis, vice president, First National Bank, Chi cago. M New Directors Jordan J. Crouch, vice president, First National Bank, Reno. Miss Daphne Dailey, director public relations, Bank of Virginia, Richmond. Arthur J. Howell, vice president, Manufacturers National Bank, Detroit. John M. Patton, president, Mitchell National Bank, Mitchell, South Da kota. George M. 'Wasem, assistant vice president, Commercial National Bank, Peoria, Illinois. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE JA I A L A I (H i-Li) players and associates at Tia Juana, Mexico. The “ as sociates” are distinguished members of the F.P.R.A. and are the “ civilians” standing in the back row and include (left) Rod Maclean, Union Bank & Trust Co. of Los Angeles, (center) Michael Donnelly, California Bank of Los Angeles, and (right) Harry E. Petersen, Citizens National Trust & Savings Bank of Los Angeles. In case you are interested, the “ scoop shovels” held by the players are called the “ cesta” , which is the wicker claw-shaped basket strapped to the right hand. The cesta is used to serve the ball to the front wall, and to catch and then hurl the ball during the game. The skill of the game lies in catching the difficult shots, and in throwing shots that will be hard or impossible for the opponent to retrieve and return. The cesta is made to the individual measurements of each player. Eaeh cesta can be used for about two weeks of play. The ball or “pelota” has a core of virgin rubber over which rubber strips are hand wound. Over the rubber is a covering of yarn and atop that a wrapping of twine. There are two covers of goat skin. John M. Zuber, assistant vice presi dent and trust officer, American Na tional Bank, Indianapolis. The retiring president, S. H. Clelstad, becomes a member of the board of directors. Northwestern Banker, November, 1952 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Seen at the ABA ( o n re T TH E recent American Bankers Association Convention in Atlan A tic City, the larger banks of the country were hosts on numerous occasions, either at their own headquarters hotel rooms or at some other spot along the boardwalk. The pictures on these two pages were taken at some of these en tertainment functions. Reading from left to right, those appearing are: 1— Robert H. Matson, vice president; George C. Scott, vice president, and Gran ville Carrel, assistant vice president; all of the National City Bank of New York. 2— Fred M. Naber, vice president, Continental-Illinois National Bank, Chicago; John Snyder, secretary of the United States Treasury, and Janies Hickock, exec utive vice president, First National Bank, St. Louis. 3— W . E. Irvin, vice president, Idaho First National Bank, Boise; Mrs. W . E. Irvin, and Louis E. Friese, vice president, Security-First National Bank, Los An geles. 4—M . F. Hartnett, assistant vice presi dent; A. J. Burke, assistant vice president; J. J. Farrel, senior vice president; R. J. W HAT NORTH DAKOTA BANKERS ARE DOING FOR YOUNG FARMERS (Continued from page 16) the scholarships was contributed by the Minot Implement Dealers and one by the Minot Creameries who, as well as the other organizations, were invited to join in this program. Of the 53 counties in the state, 35 had representatives at the course. Age did not prevent attendance as the oldest student was 53 years old. He was a farmer named Severt Overbo from Garske, North Dakota. Most of the entrants, however, were young men in their twenties. College officials were well pleased with the performance and scholastic record made by this group of young student farmers. The men themselves have been verbose in their favorable comments regarding the course and their intentions to return for the sec ond term this winter. The coming term will feature ad vanced courses in Farm Management Practices, Farm Machinery, Farm Tractors, Feed Crops, Livestock Se lection, Dairying, Horticultural Crops, Livestock Health, Reading for Enjoy ment, and Sports. Whatever time is not spent in con structive classroom work will be well utilized as extra-curricular activities are numerous and students have the same general privileges on campus as Clark, vice president, and E. H. Worthing ton, assistant vice president; all of the Public National Bank, New York City. 5— These four gentlemen of the Mer chants National Bank, Cedar Rapids, Iowa, were hosts at a luncheon party: Marvin R. Selden, vice president; John T. Hamil ton, II, president; Reginald B. Figge, vice president, and S. E. Coquillette, chairman of the board. 6— John S. Hejinian, assistant cashier, and Jackson D. Breaks, vice president, both of the Chase National Bank, New York City. 7— Officers of the Commerce Trust Com pany, Kansas City, were hosts at a break fast held in the Traymore Hotel in A t lantic City. The four officers of the bank pictured here are Joseph C. Williams, presi dent; James M. Kemper, chairman of the board; Tom C. Cannon, assistant cashier, and P. V. Miller, assistant vice president. 8— Three officers of the Manufacturers Trust Company, New York City: Thomas S. Olsen, Joseph Snyder, and Harry A . Walsh. They are all assistant vice presi dents of the company. 9— Mrs. Henry Scarborough and Henry Scarborough, president of Scarborough & Company, Chicago. 10— Milo B. Hopkins, vice president, and R. E. McNeill, Jr., president, both of The Hanover Bank, New York City. 11— William F. Doyle and H. M. Lawder, both vice presidents of the Irving Trust Company, New York City. other students. When not reading, or listening to lectures, or completing laboratory work they will be attend ing convocations, seminars, movies of their choice, banquets, collegiate sports, or taking part in activities such as showing stock in the Little International Livestock Show. Many banks have already pledged their continued assistance for this year, and the executive committee is confident that North Dakota bankers will again join in the support of their Association’s program.—The End. Ü :: 8 Investment Bankers Meeting The forty-first annual convention of the Investment Bankers Association of America will be held November 30 to December 5 at the Hollywood Beach Hotel, Hollywood, Florida. In addition to the opening address by Joseph T. Johnson, The Milwaukee Company, Milwaukee, president of the Association, and the reports by chair men of the national I.A.B. committees, the following guest speakers will par ticipate in the program: William McC. Martin, Jr., Chairman Board of Governors, Federal Reserve System; William A. Patterson, Presi dent, United Air Lines; Carrol M. Shanks, President, Prudential Insur ance Company of America. On November 30, in the afternoon, there will be an open meeting of the Municipal Securities Committee. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis m 11 m News and Views OF THE BANKING WORLD By BEN H A LLER , JR., Managing Editor in the banking world are plentiful these days, and all of them are important to the institutions and individuals con cerned. However, here are three un usual anniversaries worthy of note— the anniversary of the oldest bank in the nation, the anniversary of one of the oldest (if not the oldest) continual banking relationships in the nation, and the anniversary of the dean of Cleveland bankers. * * * The first bank chartered by the fledgling Continental Congress to do business was the Bank of North America of Philadelphia. This was 171 years ago last month, the charter date being 1781. Unofficially, the “ Pennsylvania Bank” was operated during the trying days of the Revolu tionary war by patriotic Pennsylva nians for the purpose of supplying food to Washington’s forces out of their own private fortunes The official chartering of the Bank of North America of Philadelphia took place when Robert Morris, a Penn sylvanian, was appointed superinten dent of finances in 1781. The same men who controlled the “Pennsylvania Bank” answered the call to manage A n n iv e r s a r ie s the new bank. It operated under the same name until 1923 when mergers changed the name to Bank of North America & Trust Company, which later merged with the oldest trust com pany in the nation, the Pennsylvania Company for Insurance on Lives and Granting Annuities. The resulting in stitution still operates under the name of Pennsylvania Company for Bank ing and Trusts. * * * Possibly the oldest continual bankcustomer relationship in the country is that which exists between the Han over Bank of New York City and the Board of National Missions, Presby terian Church, U.S.A. Recently 100 prominent Presbyterians from all parts of the nation were guests of the Hanover Bank at a testimonial lunch eon in the bank’s board room, com memorating the 113 years of banking relations between the two organiza tions. William A. Eldridge, Hanover vice chairman, observed that the bank had loaned “literally millions of dollars to the board pending collection of benev olences from churches,” and that “ no officer of the bank had lost a wink of sleep by reason of these loans.” .V e ir ituihiiittj IStnrlins N E W CUSTOMERS — Since the Rawlins National Bank, of Rawlins, Wyoming, moved into its new building about a year ago, new customers have increased around 12 per cent, according to John W . France, president. Mr. France is the son of Homer A. France, who was president of the bank until 1944, the time of his death. The new building is pictured above. Latest statement figures for the Rawlins National Bank show deposits of $5,278,049, a considerable increase in recent months. In addition to Mr. France, officers of the bank are Harold M. Johnson and Ed A. Smyth, vice presidents; L. G-. Kolsen, cashier, and Elmer A . Erickson, assistant cashier. Northwestern Banker, November, 1952 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis An engrossed testimonial marking the 113 years and also the Board of National Missions’ sesquecentennial was presented to the Missions’ board by Herbert J. Osborne, vice president of Hanover Bank. + * * In Cleveland, the “dean” of bankers in that city, John C. McHannan, was the guest of honor at a dinner spon sored in his behalf by the board of directors of the Central National Bank of Cleveland. Mr. McHannan is chair man of the bank. The dinner honored “ Dean” McHannan’s 60th anniversary as a Cleve land banker, and also served as a birthday party in advance, for Mr. Mc Hannan became 80 years old on Octo ber 31st. His four-score years do not inter fere with his daily routine of arriving promptly at his desk early each morn ing a good example he has always set for his “boys and girls” as he fondly refers to his 1,000 associates and em ployes of the bank. Many of the staff refer to him affectionately as “ Uncle John.” * * * Uncle Sam is using 81 tons of precisioned tooled, steel vault doors to protect cash, securities and other val uables in the new Federal Reserve Bank building in Jacksonville, Florida. According to John Mosier, vice presi dent of Mosler Safe Company, which made the installation, three modern vaults each have a 27-ton door. For security reasons, Mr. Mosler would reveal nothing about the vaults other than to say they have every modern safeguard built into them. Sad news for burglars is that each combination lock on the vaults is ca pable of 100 million changes, which would keep any burglar busy 186 years if he worked a new combination every minute night and day. * * * For a brief, but interesting reading trip through India, get a copy of “ In dia—New Republic Bridging the East and West,” from the National City Bank of New York. This informative story of India’s business, industry and cultural progress will open the eyes of most Americans who have little idea of life in that important nation. As usual, excellent pictures tell more than a thousand words. The National City Bank maintains branches in Calcutta and Bombay.— The End. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 23 CLARENCE C. JONES Assistant Cashier BRUCE H. THOMAS Vice President They work for you — but they’re on our payroll! These officers will be among the many Omaha National people attending the Nebraska State Bankers Convention in Lincoln this month. They’ll be looking for you there. Member Federal Deposit Insurance C o r p o r a t i o n Northwestern Banker, November, 1952 24 ■f y K u n k c v s Y > irvt!vit K . Johnston President Imperial Bank of Canada Toronto, Canada (his) career is a fine example of the opportunities which await a young man with ambition.” y IREDELL K. JOHNSTON, president I and chief executive officer of Im perial Bank of Canada, was born at Jarvis, Ontario, on June 16, 1888. His family resided in North Carolina from the early days of the 18th cen tury, and the family name of Iredell remains as the link with this North Carolina association. Mr. Johnston embarked upon his career as a banker at the age of fif teen when he joined Imperial Bank of Canada as a junior on the staff of the Welland branch, Ontario. He quickly climbed the lower rungs of the banking ladder and at the age of twenty-five he was given his first branch to manage at Preston, On tario. Successively he was manager of a number of branches of Imperial Bank of Canada until he was ap pointed a supervisor at the head office of the bank in Toronto in March, 1931. In this capacity he was responsible for supervising credits for the group of branches under his supervision and served in this capac ity until he was appointed general supervisor in January, 1938. Northwestern Banker, November, 1952 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis In July, 1943, Mr. Johnston was promoted to assistant general man ager and general manager of Im perial Bank of Canada in April, 1949. He was elected a director of the bank in November of the same year. In January, 1950, he succeeded W. G. More as president and chief execu tive officer when Mr. More retired from the presidency through ill health. His success can be attributed to the fact that he has an analytical and a keen business brain, and also be cause he is intensely interested in people. He has been popular with both customers and staff of Imperial Bank of Canada and his ready wit makes him a most enjoyable afterdinner speaker. His address at the annual dinner following the annual meeting is always looked forward to with keen anticipation by the senior members of the staff who comprise his audience on these occasions. Imperial Bank of Canada has been a pioneer bank since its formative days in 1875 and has done much to assist the development of Western Canada and the mining areas in the provinces of Ontario and Quebec. As president of the Imperial Bank of Canada Mr. Johnston heads two hundred and thirty branches across Canada from Halifax in the east to Victoria in the west and during his 48 years with the bank, Mr. Johnston has not only seen immense business expansion throughout Canada but he has watched Imperial Bank of Can ada grow from a young organiza tion to a great and internationally known corporation, with deposits well in excess of $500 million. Mr. Johnston’s career is a fine ex ample of the opportunities which await a young man with ambition, as during the past 48 years he has progressed successfully from the low liest of junior positions to that of the chief executive officer of one off Canada’s leading banks. Mr. Johnston is married, and has two daughters. He enjoys a number of hobbies including lawn tennis, a game he played regularly in his younger years, although fishing now occupies more of his spare time. "V V fC 25 Each new day can present new problems. Reminder to call in your man at the Irving! https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • Faced with a tough assignment? H e ’s your man. Call on him as freely as you would a member of your own staff. In fact, he wants to be considered just that. Broadly experienced himself, he has at his finger tips the facilities of one of the world’s largest banking or ganizations . . . a global network of correspondents . . . experts in every field of commercial banking. Once you ask his help, every assignment— no matter how complicated or routine— rates equal priority. Y our man at the Irving is there to give you service— is just waiting for you to say the word. IR V IN G TR U ST C O M PAN Y ONE WALL STREET • Capital Funds over $121,000,000 W il l ia m N . E n s t r o m , NEW YORK Chairman of the Board Domestic Ranking Division, M EM BER DEPOSIT N. Y. R ic h a r d N o l a n H a r r ig a n , FEDERAL 15, Total Resources over $1,300,000,000 H. W est, President Senior Vice President in Charge INSURAN CE CORPORATION Northwest ern Banker, November, 1952 26 Tin* O utlook fo r Feodor Fouus (Continued from page 15) The local cattle market has shown a decided price drop in the past two weeks and probably will continue until early November because of the large numbers yet to be sold. It fur ther is apparent to us the cattle mar ket will continue to be lower on a graduated scale for many months. Be cause of this factor it is important for all feeders to weigh carefully in their minds the purchase price against what they might receive on the fat cattle market. C L A R E N C E C A STN ER C ash ie r Farm ers & M erchants N ational Bank Ashland, N ebraska The cattle loan demand here has been about normal. The same feed ers that put cattle in last year are putting cattle in again this fall. The feeders have a better feeling about it this year, as they feel prices are about what they should be and do not think they will go much lower. Corn is very good and of a good quality, so feed will be plentiful. Y o u r customers a re looking at C an a d a, ARE Y O U ? U .S . c a p it a l is bu sy in C a n a d a , d e v e lo p in g v a s t d e p o sits o f c o p p e r, iro n , le a d , zin c, titanium . . . h elp in g to fin a n c e the trem en d o u s oil boom in the w e st. Let Im p e ria l B an k k e e p you u p -to -d a te on C a n a d a 's ch an g in g scen e. W ith b ran ch e s lo c a te d s tra te g ic a lly throughout the mining an d o il fie ld s , w e ca n p ro v id e in tim ate in fo rm atio n a b o u t business con d itio ns, tren d s an d o p p o rtu n itie s. W e in vite in te re ste d U .S . B an ks to w rite us . . . w e 'll b e g la d to outline our s e rv ic e s. W r ite S u p e rin te n d e n t of F o re ig n Business, H e a d O ffic e , To ro n to . 18-2 Northwest ern Banker, November, T952 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Most of the feeders feel that if they get the cattle back to market sooner this year, they will make more money from their operations. South Hu hot u W. M. W ILLY President S e cu rity Bank Madison, South Dakota The demand for money to buy feed er cattle is small compared to re quests for such money last fall. That about sums up the situation. The quality of our corn is excellent. Yields are quite satisfactory. Prices are good. Consequently, many of our farm customers will sell or seal corn (at $1.50 per bushel) rather than gam ble on the future price of fat cattle. Some feeding will, of course, be done. More feeders will be tempted into feeding programs if and as feed er prices decline. However, regardless of the price of feeder cattle, we do not look for a rush to get into the feeder business this fall. These re marks apply to both cattle and sheep. Last fall we had a sellers’ market. This fall it is very definitely a buy ers’ feeder market. Personally, I think it is a much bet ter time to buy feeder cattle than last year. We discouraged our customers from feeding in 1951. We are encour aging them to feed this year, but our advice in many, many cases will not be heeded. Cash income from the corn crop is too tempting. TO N Y L. W ESTRA Assistant Vice President N orthw est Se cu rity N ational Bank Sioux Falls, South Dakota Total number of cattle on feed in this area should be slightly higher in terms of numbers than a year ago, although there will be fewer men actu ally feeding. Last year was a case of sorting out the right feeder from the marginal operator. We find that we have a good feed supply, an ex cellent corn crop, and cattle are being purchased at a much more reasonable figure than last year. Good white faced heifer calves sold as low as 22 cents on the Sioux Falls market Octo ber 16th. Steer calves, 400 pounds, sold for 24% to 25 cents. Looks like most of the feeders are going to put their cattle into the feed lots at around 25 cents. This should leave a good margin and should also be a profitable feeding year, barring any unforeseen changes in the national economy. Lamb feeding, of course, is and has been in the doldrums the past couple of years in this area, but some inter est has been aroused again and, with a margin of $2 to $3, lamb feeders should do all right this year. There has been a noticeable increase 27 J Let us help you answer ^' ' Are we using such banking questions as these: floor space to best advantag e? \s 'V'ere Qke So m0 * « V '* aV „ fovesQn ba" W'nM etoO ^ av o i'a “ e ' % costóme» s. How can we How can we be of service to simplify our operating procedures investors m Government and and save teaching time? Are our insurance coverages )oes our sy: ISS jnting provide ■■■■ informatiion J want arid A need? adequate? À These questions and many, many more are asked of us almost daily in our relationships with correspondent banks. Should you feel that our back ground of experience can be helpful we will be glad to work with you on any banking problem you may have. Sometimes this can be done by letter, telephone, or wire. Or perhaps a personal visit may be better — either here at our bank or by one of us calling on you. We will welcome an opportunity to work with you in whatever way will bestfit your needs. Continental Illinois National Bank https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis and T ru st Com pany of C hicago LaSalle, Jackson, Clark and Quincy Streets LOCK BOX H, CHICAGO 90, ILLINOIS M em ber Federal Deposit Insurance Corporation Northwestern Banker. November, 19S2 28 y the past week in cattle moving from the range area. Prior to this time there has been a feeling of holding back by the range operator for high er prices. One thing that several of our larger feeders are thinking about is, if the hold-off should continue and snowstorms and sleet storms develop in the range area, there could be a heavy movement of cattle which, of course, would further depress the feed er market. Many small feeders are not going in this year but are sealing their corn for $1.49 and cleaning up their obligations. E. M. DEAN President Farm ers S tate Bank Canton, South Dakota Feeders in the Canton locality are slow in taking on cattle this year, and we do not expect to have as large a feeding operations as last year, but cattle bought at this time are at prices eight to ten cents below last year; common grades at even more of a drop. We have a very good corn crop, well matured, which we can seal at around $1.50 per bushel, which will induce more sealing and less feeding. s W hen CHICAGO W as a C ity o f 500 , 0 0 0 . . . this small advertisement of N . W . Harris & Co., now the Harris Trust and Sav in gs B an k , appeared in Chicago newspapers. Since that day in 18 82, “ BO ND S— Government, County, City, Town; Water and School. . . ” have always been an important part o f our investment business. Pioneering for 70 years in bonds which “ we oivn and recom mend for sound i n v e s t m e n t we have supplied customers with more than $ 9 ,0 0 0 ,0 0 0 ,0 0 0 o f such securities. Upon our policy, experience and record, we have served many conserv ative investors and their families through four generations. According to reports, it looks as if there would be a better spread be tween stockers and fat cattle, which would be most agreeable. \ n r III Ihilm la S. H. MURRAY President The Citizens N ational Bank W ahpeton, North Dakota We do not anticipate any big de mand for cattle feeders this fall. The farmers hesitate to buy at the present market, for they are afraid of a fur ther break in prices. We have made a number of feeder loans, but they are small as a general rule. We have also made a couple of large sheep and lamb loans, but most of the farmers have stayed away from sheep the past five years. The market has been high and they have been looking for a break. G. H. MAY Vice President First N ational Bank & Trust Co. Fargo, North Daktoa The demand for feeder loans is down from last year. Most all of our lamb feeders lost money last year and, as a result, they have been buying in smaller amounts. Some have decided against feeding entirely. A few of our large feeders are taking lambs on a contract for gain basis to eliminate any risk for themselves. The cattle feeders so far have bought in lesser quantities, even though the market ratio is more in their favor than at this time last year. Recently there has been more activity; some feeders had been holding back for a lower price, and now have started to fill their yards. There has been a decided trend toward calves and light yearlings. Ample feed and roughage, as well as a smaller initial investment, seems the attractive pack age to this date. J. C . H O FFER T President Foster County S tate Bank C a rrin g to n , North Dakota In the past we have not had many feeder loans. However, with lower cattle prices and more feed locally than most sections of the state, I am rather encouraging our better farm ers to feed out their own cattle. There will be very few instances where cat tle will be bought as feeders. INVESTM ENT DEPARTMENT H arris Trust a n d Savings B ank O t, Organized as N. W. Harris & Co. 1882 • Incorporated 1907 115 WEST MONROE STREET, CHICAGO 90 M em ber F ederal Reserve System Northwest ern Banker, November, 1952 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • M em ber F ederal D eposit Insurance Corporation -f Mc C a r t n e y President F irst N ational Bank O akes, North Dakota fred f > y- J V A < A- V Y PÏ d. This territory in a normal crop year feeds very few cattle other than a month or two warm-up of cattle held over the summer. This year nearly all our corn has been cut for silage Y \ 29 M ODERN AIR M AIL DISPATCH https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis often makes fu n d s available days earlier Many correspondents save valuable time by routing all western items to American AMERICAN TRUST COMPANY ® BANKING S in ce 1854 Trust Company. Our Day-and-Night Transit operation assures swift service. Our many offices and west-wide relationships offer exceptional facilities for collection. A ir mail your West Coast items to A M ER IC A N T R U S T CO M PANY San Francisco S ta tem en t o f C ondition September 30, 1952 RESOURCES $ 236,448,497.72 Cash on Hand and in Banks 337,436, 302.30 U. S. Government Obligations 56,762,922.46 State, County, and Municipal Bonds 16, 113, 508.19 Other Bonds and Securities 1,211, 150.00 Stock in Federal Reserve Bank 528,821, 571.20 Loans and Discounts 10, 500, 812.98 Bank Premises and Equipment 1.00 Other Real Estate Customers’ Liability under Letters 11, 172, 523.08 of Credit and Acceptances Accrued Interest Receivable and 6, 542,223.28 Other Assets $ 1, 205, 009, 512.21 Total Resources LIABILITIES Deposits $ L , 124.450,936.02 11, 255,458.72 Letters of Credit and Acceptances 5.912,096.05 Reserve for Unearned Discount Reserve for Interest, Taxes, etc. 9: 201, 266.42 1,982,265.17 Other Liabilities 5,473,450.00 12. 575.920.00 22. 322.050.00 11,836,069.83 52, 207,489.83 $ 1,205, 009, 512.21 United States Government and other securities carried at $154,452,968.01 are pledged to secure U. S. Govern ment Deposits, other public funds, trust deposits, and for other purposes as required or permitted by law. M em ber Federal Deposit Insurance Corporation Northwestern Banker, November, 1952 30 / and there is no surplus of other feed grain, due to a very light crop. In the last 10 years there have been very few feeder loans available here. R. M. H O U GEN President Am erican N ational Bank Valley C ity , North Dakota I don’t look for many requests for feeder loans, due to the poor crop in our area. Minnesota J. F. H A E C K E L President Fairm ont N ational Bank Fairm ont, Minnesota Will say, as bankers, we were not at all satisfied with the prices paid by some of our customers that had grass going to waste; $28 to $30 per hundred was paid for just fair cattle, some times steers and heifers mixed. This went on from about July 15th to Sep tember 15th. We told them they were paying too much, that better cattle would be bought for less money a little later on, but they were good borrowers, had their farms paid for and we loaned them the money to buy the cattle. About September 15th better cattle were being put in, all steers, from $25.50 to $27 per hundred weight from 550 to 800 pounds; steer calves from $28 to $32; practically no 1,000 pound steers are being fed here. The past two weeks $24 to $25.50 is buying the above steers and $25 to $30 the steer calves. Most of our cattle loans have been made. These feeders and calves may go lower, but the weather is good to move cattle. We, as bankers, are en couraging our feeder customers to put ■ in their feeders now. We have not looked with favor on any number in creases. The in and out feeders, I think, are going to seal their corn in most instances. Our cattle paper volume may be a little less, our interest charge a little higher. E. J. FELDMAN President F irst N ational Bank Pipestone, Minnesota Regarding the outlook for cattle feeder loans in this territory, it is our judgment that there will be con siderable less cattle feeding than there was a year ago. We do not think there will be more than 70 per cent of the cattle fed in this territory than there was for the average the last two or three years. The good quality of corn and high sealing price for corn contributes to the lesser number of feeders. JO H N CA R LA N D ER President S ta te Bank of Farib a u lt Farib au lt, Minnesota Government Securities and your Bank HE management of the portfolio of United States Government T securities is a major job in every bank today. To aid our corre spondent banks in this task, we send them a weekly quotation sheet, buy and sell government securities for them as agent without fee and if desired hold the securities in safekeeping without charge. This is only one of many services we have been rendering banks and bankers throughout the Middle West for over three-quarters of a century. We shall be pleased to explain these services in more detail. £/~fe LIVE STOCK BANK e jV a fio n a / c f E S T A B L IS H E D 1 8 6 8 U NION STOCK YARDS f t ca g e It would appear that feeders are more cautious than a year ago and are taking a second look at the pros pects of a profitable operation. Last year’s feeding operation did not prove to be very profitable. There is a definite switch in this territory from dairy cattle to beef cat tle, primarily for the reason that it is difficult to secure farm help. Some dairy farmers, because of the labor situation, are now feeding out small numbers of beef cattle. Yearling steers are selling from 10 to 15 cents a pound less than a year ago and with the increase in the beef cattle population, feeders are con cerned as to the price the steers will bring when ready for market. In view of the present support prices, many feeders might decide to sell their feed rather than process it through a feeding operation. We have an abundance of feed and the experienced feeder will continue his operation on a somewhat smaller basis than in previous years and will need only limited financial assistance. We expect no material increase in feeder loans as compared with pre vious years. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J > h X K V V N. H. TA LLA K SO N President Bank of W illm ar W illm ar, Minnesota It is not expected that there will be the demand for loans to purchase feeder cattle, such as there was dur ing the fall of 1950 and especially in 1951. The corn crop in our territory is very good and there is going to be a tendency for many farmers to seal Northwest ern Banker, November, ?952 Y y \ 31 ' D I K E C T O II S M A rv U F A C T U R E R S TRUST COMPANY E D W IN J. BE IN E C K E Chairm an , T he S p erry & H utchinson C o. E D G A R S. BLO OM Chairm an, Hew York and Cuba M ail Steam ship Com pany A L V IN G. B R U SH Chairm an, A m erican H om e P rod u cts C orpora tion C o n d e n s e d S ta t e m e n t o f C o n d it io n September 30, 1952 C H A R L E S C. CLO UG H A d m inistrative V ice-P resid en t LO U R . C R A N D A L L P res id e n t, G eorge A . F u ller Com pany RESOURCES C H A R L E S A . D AN A Chairm an, Dana C orporation HORACE C. P resid en t Cash and Due from Banks . U. S. Government Securities . U. S. Government Insured F. IT. A. M o r t g a g e s ................................... State, Municipal and Public Securities Stock of Federal Reserve Bank . Other S e c u r itie s .............................. Loans, Bills Purchased and Bankers’ Acceptances................................... M o r tg a g e s ........................................ Banking H o u s e s .............................. Customers’ Liability for Acceptances Accrued Interest and Other Resources F LA N IG A N JO H N M . F R A N K L IN P resid en t, U n ited S tates L in es Com pany JOH N G E M M E L L . JR. C lyd e Estate P A O L IN O G ERL I P res id e n t, G erli & C o ., Inc. JOH N L. JO H N STO N D ire cto r , P hillips P etroleu m C om pany O S W A L D L . JOH N STO N S im pson, T hacher & B a rtlett H A R R Y C. K IL P A T R IC K S en ior V ice-P resid en t $ 742,139,252.32 836,373,260.14 79,152,779.43 101,812,908.45 4.511,700.00 30,748,891.17 840,491,896.12 11,771,263.35 13,580,214.42 15,392.769,83 6.629.770.08 $2,682,604,705.31 K E N N E T H F. M ac L E L LA N P resid en t, U n ited B iscu it C om pany o f A m erica U IA ISIU IT IE S JOH N T . M A D D E N P res id e n t, Em igrant Industrial Savings Bank Capital................................. $ 50,390,000.00 Surplus . . . . 100,000,000.00 Undivided Profits . 18.469,202.57 $ 168,859,202.57 Reserves for Taxes, 19,656,262.66 Unearned Discount. Interest, etc. . 1,637,675.00 Dividend Payable October 15, 1952 16.223,127.40 Outstanding Acceptances . . . . Liability as Endorser on Acceptances 8,240,736.88 and Foreign B i l l s ........................ 2,333,021.56 Other L ia b ilitie s ............................. 2,465,654,679.24 D eposits ........................................... $2,682,604,705.31 JOH N P . M A G U IR E P res id e n t, John P . M aguire & C o ., In c. v. M cL a u g h l i n Chairman E x e cu tiv e C om m ittee george C. R . P A L M E R D ire cto r , C lu ett P ea b od y &C o ., In c. G EO RG E J. P A T T E R S O N P resid en t, S cranton L ehigh Coal C o. & W IL L IA M G. R A B E Chairm an, Trust C om m ittee H A R O L D C. R IC H A R D Hew York C ity U n ited S tates G overn m ent and oth er S ecu rities ca rried at $154,742,665.30 are p led g ed to secu re p u blic funds and trust dep osits and fo r oth er pu rposes as requ ired or p erm itted b y law. H A R O L D V . SM IT H P res id e n t, H om e Insurance C o. L. A . V A N BO M E L Chairm an, H ational Dairy P rod u cts C orporation Head Office: 55 Broad Street, New York City H E N R Y C. V O N ELM H on orary Chairman https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis \IOKK THAN lOO OFFICES IN G R E A T E R NEW YORK Member Federal Deposit Insurance Corporation k. .DEFENSE IS YOUR JOB TO O -B U Y U. S. DEFENSE BONDS. Northwestern Banker, November, 7952 32 / the corn, than to feed it. In the years of 1950 and 1951, our corn crop was poor and consequently the farmers felt it was better to buy feeding cattle and feed the corn, rather than to seal it and get a low price, in as much as we had poor corn crops those two years. We have already financed a large number of feeding cattle this fall. We have farmers in our vicinity who will want to feed cattle each year, even though the corn prices may be attractive, but they are equipped to handle feeding cattle and it has be come part of their farm operating procedure. This fall the prices are considerably lower than they were last year and that is somewhat attractive and even though they feed better corn this year, they will get better results. With present prices, it seems the farmers could make some money on feeding cattle. Many of those feed ing cattle last year, when prices were high, made very little more than a fair price for their feed. Even so. they were able to feed more of their corn crop that would have otherwise spoiled. It appears that the lighter calves are the more attractive but some are buying cows that they in tend to sell later in the fall or winter when they have eaten up what re mains in the corn field after picking, and other rough feed. f T. E. SPREITER President W estern State Bank M arshall, Minnesota The corn crop in this area is of good quality—readily marketable at good prices—c o n s e q u e n t l y cattle feeder loan volume less than a year ago. Feeders that regularly feed year in and year out have about the same number in their lots. V £% • di R. P. H A YES President The F irst N ational Bank Red Wing, Minnesota jL The situation seems to be that more will be on feed in this area than previously. Due to the abundance of feed most farmers are feeding a few more head than usual. This area is predominantly a dairy country but it seems that each farmer is feeding a few head due to large supplies of roughage and corn. The corn crop has matured well, however, it still contains quite a bit of moisture. Heavy frosts during the past ten days has done a lot to kill any growth and hasten maturity. Due to the fact that we do not have any large feeders in this area, I do not look for any sizable demand for feeder loans. This is not unusual, however, as we are primarily a dairy country. KgJI m : day t r a n s i t departments work as an unbeatable team to give you speedy 24-hour transit service that scores in your favor by saving from one to t h r e e days collecting time. V'W ,<5 w m m lotva T. C . A A RESTA D President F irst N ational Bank Denison, Iowa W e’re ready to “ carry the ball’" for you . . . and give you the advan tage of a greater num ber of direct sending points than any com mercial b a n k in the United States. mm I (om m crcejrust (om pany C a p it a l S u n d * C x ceed 2 7 W iiL n d o lla r s KANSAS C I T Y S L MAEMRB ERGFEDERAL E S TDEPOSIT BANK Established 1865 Northwestern Banker, November, 1952 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis INSURANCE CORPORATION While we have been making a few feeder loans since this season started, our people had generally been in a “wait and see” mood, feeling sure that the feeder prices would be driven lower by the lack of demand in cattle feeding areas and the eventual large number of cattle that should go to the feeder markets. Because of our bountiful corn crop and knowing that it can be sealed for over a dollar and a half per bushel, many of our people have thought it might be wise to realize cash quickly on their corn crop rather than risk it in feeding to cattle, but we believe that the natural desire of these people who have been in the cattle business for so long is to want to feed the crop on their farms rather than have the corn eventually delivered to the Commod ity Credit Corporation and so leave * >■ > w h- "V V s'" y this area. Therefore, we believe there will be many cattle loans made, predominantly on lighter weights, because we think our operators will stay in the business in spite of last year giving a setback to some of them. We don’t think they are dis couraged but have become more cau tious. Our experience with cattle loans has been excellent in the past and we expect to continue making them and we know that the cattle feeding in dustry is good for the economy of our state and country, so rightly the cattle feeders are entitled to make a fair profit on their operations. ANNOUNCING An important development in drive-up banking D ie b o ld ~ h C . S. JO H N S O N Executive Vice President F irst N ational Bank P erry, Iow a We find that our cattle feeders are more cautious this year than they have been for some time. We had considerable inquiry in August but we advised that if feeders would not become too anxious in our opinion the price of feeding cattle could be come considerablylower. Most of our feeders have heeded this advice and now that feeder cattle are at a considerable lower level, we are again interested. It is my opinion that if prices show some further de cline there may be considerable cattle feeding in our area, but I think the feeders are very cautious and will only proceed if they think there is a reasonable chance of some profit. C H A R L E S J. SP IES President Iow a Trust & Savings Bank Emmetsburg, Iow a You may take my views for what ever you think they are worth; how ever, I will say this: that over the past five years or so, like all bankers, I have been wrong much of the time in advising our cattle feeder custom ers against buying cattle. How ever, during the past few years we have had an up-market until this past year. During 1952 many of our customers did well to break even, and some of them lost money. The quality of the corn which they fed was of course not good, and if they sold their corn on the market, it would not have brought a good price. These conditions must be taken into consideration. As far as the present season is con cerned, two-thirds of our customers have bought their cattle. We advised them to wait until this time before making their purchases. Those who did not wait until now, paid between 28 cents and 30 cents for their cattle. At the present time a number of our farmer friends are buying excellent quality western Herefords at 24 ^ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The drive-up banking counter pic tured above is important news to progressive bankers everywhere. It is the result of five years of research and development by Diebold, pioneer in Drive-up Banking, It incorporates more than 30 specific advantages both for depositors and bank personnel. Only Diebold offers a counter so functionally sound and so completely jn harmony with present-day bank architecture. Its 80-inch expanse of bullet proof glass, complete counter visibility and many other features including motorized deal tray will interest you and please you The design of this new series reflects the accumulated experi ence of 486 bankers with backgrounds in dnve-up banking. Their suggestions helped Diebold engineers produce this new series in three sizes with optional accessories to meet every requirement. This important forward step in drive-up banking is new evi dence of Diebold’s traditional leadership in banking equipment. Let your Diebold representative give you the complete story. D ie b o ld I N C O R P O R A T E D Pre-eminent since 18 59 For additional information write to Diebold, Inc. 2040 Mulberry Rd, S. E., Canton 2, Ohio Bank Vault Doors « Safe Deposit Boxes • Diebold-McClintock Alarms • Night Depositories Rekordesk Safes m Chests and Safes o Diebold-McClintock Vault Ventilators Northwestern Banker, November, 1952 34 / 4 'htm y os ut N a tion a l Vit y Itanh RA's Recorded LOBBY-PROGRAMS S e l l MORE h ^ e w ic e d 4 TO MORE PEOPLE D E W I T T A. FO RW ARD Sr. V ice President 4 Complete Programs of fine Music and dignified "S e llin g " only $32.50 Make every visitor a 100% customer of your bank! Sell them your Loan, Sav ings Account, Checking Account and Safety-Deposit services with these 4 new banker-designed RA Lobby Pro grams. Each Program is a 15 minute medley of America's favorite semiclassical music played by top Radio-TV talent— interspersed with 4 dignified spoken announcements. The guaranteed 12 inch, Vinylite microgroove nonbreakable discs are made by a famous record manufacturer and can be played on any record player. Each Program is also designed and timed to use as a 15 minute Radio Program — and for use in your banks booth at Trade Shows, Fairs, etc. 10 DAY FREE TRIAL Let us send you these 4 RA Lobby Pro grams for a 10 Day Free Trial a b s o lu te ly bank! w ith o u t any o b lig a tio n to you r Play them — if you like them, send us your check for $32.50 payment in full. If you don't like them, return them to us parcel post postage collect! Fair enough, isn't it? Write today to; Record A ssociates, 924 19th Street, N. W. W A S H IN G T O N 6, D. C . Northwestern Banker, November, 7952 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N. C. L E N F E S T E Y x 2 c . V ice President and Cashier E L E O N. S H A W J. S. R O C K E F E L L E R Exec. V ice Pres, and Exec. V ice Pres. M gr. O verseas D ivision of the National City DIRECTORS Bank of New York recently amend president in 1927 and senior vice presi dent in 1945. ed the by-laws of the bank to change the number of senior vice presidents from three to one, who will be DeWitt A. Forward, a senior credit officer of the bank. The board also appointed three of the senior officers of the bank to the newly created offices of execu tive vice presidents. James S. Rocke feller, formerly senior vice president, became executive vice president in charge of the domestic business of the bank. Leo N. Shaw, also a former senior vice president, becomes execu tive vice president and manager over seas division. Nathan C. Lenfestey becomes executive vice president and cashier. Mr. Forward received his A.B. de gree from Colgate University in 1916. His banking career started at National City in the bank’s college training class that year. He was appointed a vice Mr. Rockefeller, a graduate of Yale University, came to National City in 1930. In January, 1940, he was made a vice president. He was appointed a senior vice president in 1948. Mr. Shaw graduated from Amherst College in 1916. He joined National City as a member of the foreign serv ice training class and was appointed a vice president in 1931. In 1945 he became deputy manager and in 1946 manager of the overseas division, and was appointed a senior vice president in 1948. Mr. Lenfestey joined National City in 1917, three years after graduating from Dartmouth College. He was ap pointed cashier of the bank in 1919 and vice president and cashier in 1940 and has the longest tenure as cashier in the bank’s history. J > * r cents to 26% cents. We are pleased that our feeders are buying smaller cattle than in previous years. In other words, they are buying cattle weighing between 400 pounds and 700 pounds. They have learned that it is necessary to put on a cheap gain through feed ing grass silage, corn silage, alfalfa hay, oats, and other protein feeds. This kind of an operation requires a feed ing program of twelve to fifteen months, but we believe that we and the feeder are taking less risk with this program of feeding calves. Six d ays later — Since writing to you the other day regarding cattle feeding prospects I want to report that in the past few days the bottom has apparently dropped out of the feeder cattle market in northwestern South Dakota and adjacent Wyoming territory. Several of our customers have in the past few days purchased excellent quality 725 pound Hereford heifers at 18 cents. Six weeks ago this same string of cattle was held at 32 cents. We will let the economists tell us what the finished cattle will sell for next summer. E. D. SU TH ERLAN D C ash ie r F irst N ational Bank Manning, Iowa I do not think farmers will feed quite as many cattle around here as last year. They are holding off for lower prices for feeding cattle. As there is quite a large corn crop here, if the price of fat cattle holds up, it might change the situation. F. J. LEW IS President The H arlan N ational Bank H arlan , Iow a We are making and think we will continue to make a nice volume of cat tle loans. Our volume is down from 20 per cent to 30 per cent below the ex- h- V V Y \ 35 tremely high amount of these loans of last year and we would expect this re duced ratio to hold for the rest of the feeding year. We attribute this reduction to the fact that our feeder cattle and calves are coming in this year from $6 to $12 per hundredweight cheaper than the preceding year, and we believe some fewer cattle will be fed in this territory this year because of an excellent corn crop which can be sealed at high prices because of unsatisfactory feeding experiences in the last season. We think that well-made cattle loans will continue to be excellent paper in our locality. Our feeder customers should probably look for ward to lower fat cattle prices next year (say about $25 Omaha price) which means that they should plan to make their profits from economical gains rather than from margins. The economical use of all forms of rough feed produced on farms in our coun try should provide cattle feeders with a nominal profit and a good price for their corn and should continue to build the productive capacity of their land through a good livestock and land use program. Wisconsin Appointment R. C. Schall, vice president of the field warehouse division of the St. Paul Terminal Warehouse Company, an nounces the recent appointment of Wallace S. Coutts as inspector for the Company, to serve the eastern half of Wisconsin. Mr. Coutts, 32 years of age and mar ried, started his business career with the Waukesha, Wisconsin, National Bank, where he worked as messenger, bookkeeper and teller until 1941, when he went into the service. Returning from the service in 1946, where he acquired five campaign stars and a bronze star, he handled G. I. loans for Waukesha National, and when the bank opened a branch in Butler, Wisconsin, Mr. Coutts was named manager. The service recalled him again in 1950, but now released he has taken the above position with St. Paul Ter minal. He resides in Butler. Reserve City Member J. Darrell Francis, senior vice presi dent of the Mercantile National Bank at Dallas, has been elected to mem bership in the Association of Reserve City Bankers. He was voted the honor by the association’s board of directors, meeting during the American Bank ers Association convention in Atlantic City. C H A R L E S E. W ATTS President Co m m ercial State Bank Pocahontas, iow a In this area there appears to be somewhat fewer cattle loans now than at the same time last year. The cost of the feeders purchased is lower but we find that many feeders are buying more animals. Last year’s feeding experience has made most buyers and their bankers more cau tious. Many of the more experienced cattle feeders have not yet filled their feed lots and we look for a good deal of interest in feeding cattle through October and November. The number of cattle feeding loans will probably be as large as last year with the dol lar totals somewhat less. T H E A D V A N T A G E S OF D K O V E K S S E R V I C E TO Y O U R IBANK S E R V I C E . . . F O R L I V E STOCK SH IPPING CUSTOMERS C? I A S T & E n f E A « L Y H. C . SMITH Executive Vice President C e d a r Falls Trust & Savings Bank C e d a r Falls, Iow a With the prices on stocker and feeder cattle $10 lower than the fall of 1951, it seems to us that the risk on such loans has been considerably reduced. In our area we have a large number of experienced cattle feeders, most of whom, when buying feeders, take into consideration the weighing condition (which, of course, is an important factor). Also, due to the fact that the corn crop is excep tionally large and of high feeding value, and plenty of roughage avail able, cattle feeding should be more profitable than a year ago.—The End. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis & A C C V n A T E Because o f Drovers’ convenient location at the Yards, time is saved—often a full d a y—in transmitting livestock proceeds. DROVERS N A T IO N A L B A N K DROVERS TRUST S S A V IN G S BANK UNI ON S TO CK YARDS, CHI CAGO Members, Federal Deposit Insurance Corporation Northwestern Banker, November, 1952 You can feed checks by the handful. The builtin automatic feeder does the rest . . . eliminates individual check-hand ling . . . enables you to take over 500 pictures per minute. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis You have this choice of reduction ratios . . . and you can change from one type of recording to an other in a matter of minutes—simply by substitut ing the desired type of lens kit in the camera. ...th e "desk-top” microfilmer that gives you more pictures per foot of fflm... at sensational speeds. Now . . . you can record up to K| 29,000 check images . . . up to 10,700 ? letter-size documents on a 100 foot roll of 16mm. Recordak Microfilm— the greatest number of pictures ever . . . at the lowest film cost per picture! And the Recordak Bantam Microfilmer does more than cut film costs— it enables you to microfilm at maximum speeds . . . with maximum convenience. It features a built-in automatic feeder which whisks over 500 checks into the microfilmer per minute; over 200 letter-size documents. And as for convenience— look at the compactness of this new microfilmer . . . less than 4 sq. ft. of desk space is required . . . everything’s at the operator’s finger tips— the feeding tray and the receiv ing tray, for example, only inches apart. Versatility Plus Documents up to 11 inches wide, any length, can be photographed in the Recordak Bantam Microfilmer at varying reduction ratios to suit your convenience. For '' Recordak ” is a trade-mark example, records 1 1 x 1 4 inches in size can be photo graphed at a 40-1 reduction ratio, which gives you max imum fihn economy; also at reduction ratios of 24-1 and 19-1, using readily interchangeable lens kits.* Doc uments less than 9 inches wide can, in addition, be photographed at a 32-1 reduction ratio with an acces sory lens kit.* Buy or rent at these low prices The Recordak Bantam Microfilmer (with one lens kit) and its companion piece, the Recordak Fihn Reader (Model P-40), can be purchased outright for $2225. And one year of service— including parts replacement— will be provided at no extra cost. The rental cost for this combination is $43.50 per month . . . with no extra charge for servicing or necessary parts replacement. Write today for complete information on the Recordak Bantam Microfilmer. Recordak Corporation (Subsidiary of Eastman Kodak Company), 444 Madison Avenue, New York 22, N. Y . *accessory equipment at slight extra charge A ll prices quoted are subject to change without notice. (Subsidiary of Eastman Kodak Company) originator of modern microfilming —and its application to banking systems You can record all docum ents up to I I inches w id e, any length, in the Recordak Bantam Microfilmer. Thus, deeds, legal-size documents, etc., can be recorded as well as your smaller items. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Your film records w ill be enlarged sharp and clear in the Recordak Film Reader (Model P-40). And large-size facsimile prints can also be pro duced quickly—directly from your microfilms. 38 y to Hoir M a k e an Loan (Continued from page 18) as security for a loan of $25,000. In this instance the loan would be 50 per cent of the cash value. just one purpose — to teach bank bookkeepers more about their jobs. The Program consists of twelve 16 inch 33 1 /3 rpm records dealing with Stop Payments, Certified Checks, Endorsements, etc.— one subject to each record. Emphasis is placed on what happens to a customer when a bookkeeper makes an error. EnterTRAINment records are played on a portable record player right in the bookkeeping department, without the bookkeepers leaving their desks. y ¥ EnterTRAINment Enti is the lowest cost bank training program ever developed, both from the standpoint of original money investment and in the saving of bank executive time. EnterTRAINment will be as good in 1962 as it is in 1952. VV EnterTRAINment Ent helps to prevent bookkeeping errors. It costs less to prevent errors than it does to correct them. For full details write EnterTRAINment, Inc., 734 15th Street, N. W . Washington 5, D. C. Northwestern Banker, November, 1952 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Further assume that the borrower’s income the first year amounted to $20,000 and 75 per cent of this income, or $15,000, was applied on the loan. This would leave a balance on the loan of $10,000 at the end of the first year. The security for the loan at the end of the first year would be the original $100,000 net earnings, less $20,000 re ceived the first year, or $80,000 at the end of the year. Discounted 50 per cent to a cash value of $40<,000 as se curity for the $10,000 balance of the loan, the loan would then be 25 per cent of the cash value. Under the above circumstances the loan at the end of the first year has twice the security as the original loan, and sound banking principles would justify doubling the amount of the loan at the end of the year; that is, increase the loan from $10,000 to $20,000. The following schedule illus trates the comparison of the facts out lined above: L ess: End Change of Original during first loan year year Estimated net earnings over life of property after op erating costs deducted. . $100,000 $20,000 $80,000 Discounted 5 0 % to cash value of the r e s e r v e s .... 50,000 ............ 40,000 Amount of lo a n ..................... 25,000 15,000 10,000 Ratio of loan to discounted cash value .......................... 50% 25% There is a possible limitation to this method, and this should be pointed out. Some better producing properties may enjoy a productive life of 50 years or longer, and a loan predicated on 50 per cent of the cash value of such prop erties would have an amortization pe riod of some 15 years. Such a period is far in excess of the maximum pay out period of most banks, usually lim ited to four or five years. Cash Values and Reserves Although there is a variety of methods by which the cash value of producing properties may be deter mined, the only sound method must give consideration to the expected net earnings, over the life of the property, as the founding point. Suppose fu ture recoverable oil will return a net profit of $100,000 after deduction of all operating costs. The cash value is then derived by applying 50 per cent to this figure, arriving at a cash value of $50,000 on which a bank will loan approximately $25,000. This calcula tion rests fully on the recoverable re serves, and it is therefore necessary that these be estimated. T Estimation of Recoverable Reserves There are three generally accepted methods of estimating oil reserves in normal reservoirs. 1. Production Decline C u r v e Method—where the lease in ques tion has produced its maximum production over a period of time. 2. Volumetric Method—applied on prorated producing properties where the production rate is re stricted to daily rates lower than the capacity of the property to produce. 3. M aterial B alance C alculations — based on bottomhole pressure and rates of production. This method applies to a pool as a whole, not to individual proper ties. An adequate check of all oil prop erties must include the production his tory of the properties, preferably gross production by years since the first well and by months for the past year. The monthly production information should then be checked with proration schedules to find if the property is making its allowable production, or to ascertain if the property has entered the declining phase of its life. A production decline curve is consid ered one of the most reliable methods in estimating oil reserves and it is at all times desirable that such a curve express not less than 12 to 18 months’ production history. One factor gener ally influencing the accuracy of such a curve results from the drilling of additional wells during the time cov ered, and the production from such wells should be adjusted on the graph. There are various types of produc tion decline curves for extrapolating the future reserves to the economic limit of production—the double log curve, the semi-log curve, rate accu mulative curve, and the percentage decline curve, all being based on the production history. In any instance it is advisable to retain one type of curve to express the production history throughout the life of the property. This provides for greatest accuracy. One of the principal advantages of a decline curve is that a forecast of future income by months and years is ascertainable. Such information serves as a guide in judging the income that will be available for application on the loan, and that which may be ear marked on a repayment schedule. The volumetric method of estimat ing oil reserves applies to properties where the sustained productive ability is greater than actual daily produc- AT h- V y y \ 39 tion under proration. In this method a computation is made of the volume of pore space in the formation filled with oil, to determine the amount of oil in place, and from this the recov erable oil is calculated by applying a recoverable factor. It is necessary to have porosity and permeability deter minations along with such other data as oil saturation, connate water, gas in solution, and accumulated past produc tion in order to estimate future re coverable oil by this method. The future monthly or yearly in come over the economic life of a prop erty under which reserves have been estimated by this method is contingent on allowable rates of production until such time as this rate is the equivalent of the actual ability of the property to produce. Following such time the natural decline of production deter mines the amount of income available for loan repayment rather than the prorated production as stipulated by the state regulatory body. The third method of reserve calcu lations, commonly referred to as the material balance method, applies to a pool as a hole, but not to individual properties within a pool. It may, how ever, be used to check the relative accuracy of reserves estimated under an individual lease. The principle in volved in this method hinges upon a pressure - volume relationship based upon present decline, plotted against time in relation to barrels of oil with drawn. rate of water or gas encroachment of the saturated zone must be permitted to express the economic longevity of the project or any unit acreage in volved. One usually essential element of a pressure maintenance operation is unitization of individual leases and other interests. In the case of Okla homa the unitization law requires the consent of 63 per cent of the operators and royalty owners in a given pool to invoke the jurisdiction and obtain the approval of the Corporation Commis sion. In Texas, there is no unitization law and such unit operations are left largely to the discretion of the Rail road Commission for approval. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Future Wells— Additional Loans In the instance where future wells are planned it is advisable to have a separate analysis covering the con templated drilling program. The basic loan should be predicated only on pres ent production, with additional ad vances made on new wells if and when completed. A complete picture of a A C O N V E N IE N T F O R E IG N S E R V IC E Controlled Reservoirs A fourth method of estimating re serves has been developed to apply to those reservoirs where pressure main tenance effectively results from a nat ural or induced water drive, through injection of water or gas, or through a combination of these accessories. In the writer’s opinion the con trolled reservoir represents a notable achievement in petroleum engineer ing, and one that may increase recov eries 100 per cent. The practice has, however, necessitated new approaches in estimating reserves recoverable from such projects. In operations of this character water or gas is used to displace the oil with the water/oil contact moving up struc ture when water is injected, or the gas cap expanding down structure un der gas injection. Either action, con trolled in relation to produced oil and formation pressure, progressively re duces the remaining effective satu rated zone of the pay strata. There fore any reserve estimate in such an operation must consider not only nor mally recoverable oil, but that which is moved to the well bore by the pres sure maintaining agents. Further, the The natural difficulty in unitizing is the factors used in devising a formula of participation that will be agreed to by the required per cent of the opera tors. Political aspects ignored, the benefits derived from a properly con ducted, controlled reservoir outweigh any inequalities inherent in the agreed method of unitizing. FO R M ID W ESTER N B A N K S y e a r , as in the past, Americans will send millions A of dollars abroad as Christmas gifts to relatives and friends. We maintain an easy-to-operate foreign remittance service for hanks which do not maintain overseas connec tions. Our service is complete. We furnish the necessary forms and suggest solicitation methods. r p H ls Our Foreign Department will he pleased to furnish you with information regarding our facilities for letters of credit, commercial payments, foreign collections, and the drawing of checks, on all important cities throughout the world. We will he glad to send you, without obligation complete details of our foreign services. A fT ie r ir a n N a tio n a l B a n k a n d T r u s t C o m p a n y o f C h ic a g o MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION LA SALLE AT WASHINGTON, CHICAGO 90, ILLINOIS Northwestern Banker, November, Ï952 40 y loan schedule covering present pro duction and anticipated drilling can only be obtained with two analyses. When a loan is to cover contem plated future development, that por tion of the loan not secured by produc tion already proved should be limited to the actual cost of the contemplated well or wells. This policy is adhered to until the property approaches com plete development. In development campaigns there is always a hazard that the operator will drill a dry hole or complete a small producer and unexpectedly be con fronted with expenses totally unantici pated. To alleviate the precarious position in which the operator might find himself, and the loan on produc tion be placed, a bank may be practi cally forced in such instances to make additional advances in order to pro tect the security. The limitation of the amount of a loan in a develop ment program to the actual well cost provides a backlog or a cushion pro tecting the loan and the operator against such contingencies. The early speculative qualities of early-day oil development have been sufficiently tempered as to make the oil loan an attractive proposition. To day’s oil operator is a realistic indi vidual fully cognizant of economic trends and conditions that bear upon either a request for a loan or the granting of same. In the final analysis and from the viewpoint of this bank, the loan on oil production has proved to be a healthy transaction. The bank with which the writer is associated has never sustained a loss on a secured oil loan. It can logically be concluded that expansion of loan services among oil operators, contingent upon satisfac tory data, will be of equivalent bene fit to both the oil and banking indus tries.—The End. Advertising Programs.” These pro grams have been worked out success fully on a national basis for Zippo Lighters, Fryryte Deepfryers, P&K Fishing Tackle, Boulevard Watches, Stewart-Warner radios, as well as many big hotels and resorts. Reciprocal trade transactions are 4 y New Ad Agency Charles F. Southward has an nounced the formation of Southward and Associates, an advertising agency in Chicago. The agency has several active accounts in fields of industrial and consumer products, savings and loan associations, hotels, resorts and travel. “Chile” Southward is well known in advertising circles, having been ex ecutive secretary of the Chicago Fed erated Advertisng Club from 1935 to 1940. For the past seven years he has been asociated with Harry Atkinson Advertising Agency as vice president. In addition to general advertising ac counts, the new agency will expand its activities in handling what Southward calls “Reciprocal Trade Agreement Y C H A R L E S F. S O U T H W A R D Reciprocal Trade Programs worked out by the agency, between manufacturers and various media in cluding newspapers, radio stations, magazines and outdoor. Southward says there is a wide field to be de veloped using this type of product and service promotion. -< Hew York--$4 Wall Street 570 Chicago • -27 S. La Salle Street ‘& KZ*tc6e4 Sea Francisco ■-333 California Street • Resources Exceed $2 Billion Y BANK IMPRINT NAPKINS W ILL BUILD GOOD W ILL IN YOUR TOWN Hundreds of Banks are now giving away our personalized im print paper napkins when asked for a donation by a local organization. A few cents worth of napkins satisfies and SAVES. Your bank picture and a few lines of copy will make an attractive napkin. Let our artist work up a sketch for you. Write for Prices and Samples CASCADE PAPER CO. 1 BROWN ST R EET NORTH AD AM S, M ASS. A RIZO N A BO UN D ? Visitors love Arizona —and we love visitors! Send your friends and customers to us. W e’ll see that they get the same personal attention you give them "back hom e.’ ’ S E R V I N G s4C C A R I Z O N A 33 F R IE N D L Y C O N V E N IE N T h o m e O ffic e — O F F IC E S P h o e n ix , A r iz o n a TER R ITO R IES OPEN FOR Q U A L IF IED BANK S A L E S M E N MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION N ort hwest ern Banker, November, 1952 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis / ¿s'; A 41 M o r tg a Savings anti In Minneapolis. of the govern R ment and leading bankers in the Monday, November 10£h e p r e s e n t a t iv e s ) savings and mortgage business will be among the speakers to address the Regional Savings and Mortgage Con ference of the American Bankers As sociation to be held in the Hotel Nicollett, in Minneapolis, Minnesota on November 10th and 11th. The tenta tive program for the conference was announced by F. A. Amundson, gen eral chairman of the conference and vice president, Midway National Bank, St. Paul, Minnesota. The conference, which is being spon sored by the Savings and Mortgage Division, will bring together bankers from North Dakota, South Dakota, Minnesota, Iowa and Wisconsin to hold discussions and hear addresses on the problems and techniques of savings banking and mortgage lend ing. The entire first day will be de voted to the savings field, with the second day taken up by mortgage problems. Among the features of the program will be a reception given by the Min neapolis banks at 5:00 p. m. on No vember 10th, followed by a banquet. The banquet will be addressed by Oliver S. Powell, president of the Fed eral Reserve Bank of Minneapolis. Representing the government on the program are Raymond M. Foley, administrator, Housing and Home Finance Agency, and Thomas B. King, director, loan guaranty service, Veter ans Administration. Banker speakers include W. Harold Brenton, president of the American Bankers Association and president, State Bank of Des Moines, Des Moines, Iowa; Wendell T. Burns, president of the Savings and Mortgage Division and senior vice president, N o r th w e ste r n National Bank, Minneapolis; F. Brian Reuter, member of the Savings and Mortgage Divisions Committee on Investments and vice president, Mellon National Bank and Trust Company, Pittsburgh, Pennsylvania. The afternoon session on Tuesday, November 11th, will be devoted en tirely to “A Mortgage Committee in Action,” a panel discussion. Five bank ers will make up the mortgage com mittee of a hypothetical bank and discuss new mortgage loan applica tions. Joseph R. Jones, vice president, Security-First National Bank of Los Angeles, Los Angeles, California, will act as chairman for the panel. The tentative program for the con ference follows: https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A. M. 10:00 First Session—Minnesota Ter race. Presiding — F. A. Amundson, general chairman, Conference Committee; vice president, Mid way National Bank, St. Paul, Minnesota. “ The Savings and Mortgage Picture” — Wendell T. Burns, vice president, Savings and Mortgage Division, A.B.A.; sen ior vice president, Northwest ern National Bank, Minneap olis, Minnesota. “ Investing Savings Funds in a Commercial Bank” -— F. Brian Reuter, member, Committee on Investments, S a v i n g s and Mortgage Division, A.B.A.; vice president, M e l l o n National Bank and Trust Company, Pittsburgh, Pennsylvania. Address — W. Harold Brenton, vice president, American Bank ers Association, Des Moines, Iowa. Second Session — Minnesota Terrace. Presiding—Guy S. Bacon, pres ident, Minnesota Bankers Asso ciation; president, Empire State Bank, Cottonwood, Minnesota. “ Rates of Interest on Savings” —J. R. Dunkerley, deputy man ager and secretary, Savings and Mortgage D iv ision , A.B.A., New York, New York. “ Merchandising Savings” — John B. Mack, Jr., deputy man ager; manager, advertising de partment, and director, Public Relations Council, A.B.A., New York, New York. Address — Speaker to be an nounced. 5:00 Reception—East Room. 7:00 Banquet—The Ballroom. Presiding—Mr. Burns. Address — Oliver S. Powell, president, F e d e r a l Reserve Bank of Minneapolis, Minneap olis, Minnesota. Tuesday, November 11th A. M. 10:00 Third Session—The Ballroom. Presiding—Henry S. Kingman,, former president, Savings and'. Mortgage D iv ision , A.B.A.;: A M E R IC A ’S Y E A R - R O U N D V A C A T I O N PA R A D ISE It's vacation-time 365 days a year at HOTEL BILOXI where folks come from east and west, north and south to lose their cares in the refreshing waters of the Gulf of Mexico. Golden days— cool nights. All sports . . . swimming, peddle-boating, golf, fishing. Real southern cooking in the Colonial Dining Room. Nightly dancing in the glamorous Creole Room. European Plan, from $4 single, $6 double. American Plan, including all meals, 2 in a room, per person, f r o m ...................... W E E K L Y $5 2 50 For reservations, see your Travel Agent, or write for folder. C. Ould, Manager, Hotel Biloxi, Biloxi, Miss. BOX D SPECIAL RATES TO PARENTS OF KEESLER FIELD SERVICEMEN. B ILO X I, MISS. Northwest ern Banker, November, 1952 42 y president, Farmers and Me chanics Savings Bank, Minne apolis, Minnesota. “Housing and Mortgage Legis lation”—Thomas L. Nims, as sistant secretary, Savings and Mortgage Division, A.B.A., New York, New York. Address — Raymond M. Foley, administrator, H o u sin g and Home Finance Agency, Wash ington, D. C. “The New G. I. Loan Law”— Thomas B. King, director, Loan Guaranty Service, Veterans Ad ministration, Washington. D. C. P. M. 2:00 Fourth Session—The Ballroom. Presiding—Mr. Burns. “A Mortgage Committee in Ac tion”—Panel Discussion. Joseph R. Jones, chairman; vice president, Security-First National Bank of Los Angeles, Los Angeles, California. George G. Cowie, vice presi dent, Farmers & Mechanics Savings B a n k , Minneapolis, Minnesota. Orville Habberstad, president, Union National Bank, Roches ter. Minnesota. Clarence F. Tesch, vice presi dent, Marshall & Ilsley Bank, Milwaukee, Wiscconsin. Daniel L. Middleton, assistant vice president, Security Nation al Bank, Sioux City, Iowa. Elected Director 4 f Horace C. Flanigan, president of Manufacturers Trust Company, an nounced the election of George G. Walker to the board of directors of the Trust Company. Mr. Walker is S c o u t in g f o r Superior Bond Service? G E O R G E G. W A L K E R On M anufacturers Board Chosen to lead the way because of his dependability and good judgment, the Scout symbolizes these qualities of leadership inherent in City National. Informed, capable and friendly, the staff of City National’s Bond Depart ment has a long, successful record of helping correspondents choose sound, p r o f i t a b le investments. In many cases, reduced taxes and increased earnings have resulted from City National’s recommendations. W hat’s more, City National provides safekeeping of bonds from date of purchase through disposal or exchange . . . keeps you informed of the market trend with a weekly bond letter showing quotations and yields, and checks prices quickly through Bank W ire and teletype services. Let City National provide keen analysis of your bond portfolio and sound, experienced counsel on investments and sales. Your account is invited. C IT Y N A T IO N A L d itw iA ESTABLISHED 1913 <ju$y MEMBER F EDERAL & £h u U ^ c w ific m y KANSAS CITY 10, MISSOURI DEPOSIT Northwestern Banker, November, 7952 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis I NS UR ANCE C O R P O R A T I O N president and a director of Electric Bond & Share Company, and vice chairman and a director of Ebasco Services Incorporated. He is also a director of American & Foreign Pow er Company, Inc., the Schering Cor poration and United Gas Corporation; and a member of the United States Committee of The Northern Assur ance Company Ltd. of London, Eng land. Opens Foreign Offices Opening of a new banking establish ment in Osaka, Japan, by Bank of America was announced from the bank’s San Francisco headquarters by Russell G. Smith, executive vice presi dent in charge of the bank’s interna tional banking affairs. Fourth Japanese city to have a branch of the California branch bank, which has become a world-wide finan cial institution, Osaka is a thriving industrial and financial center located on the southern part of Honshu Island. A new branch of Bank of America N.T. & S.A. was also opened in the West End of London recently. Lo cated at 29 Davies Street the new office will be the second to be operated in London by this California bank. V- A 43 INVESTMENTS B u s in e s s L o a n s Vantinav in Expand Demand from Local Borrowers Is Affecting Commercial Bank Activity in the Investment Market By RAYMOND TRIGGER Investment Analyst New York City with short-term “secondary reserves” , the time may be getting ripe for some modest lengthening out in the direc tion of intermediate bonds—that is ob ligations due in from five to ten years —should such paper be available in the market at sizable discounts from par. Any such lengthening of average maturity, however, should come after —not before—the bank has fulfilled its first responsibility—the accommoda tion of borrowers seeking funds to fur ther constructive ends in the economy. Moreover, investment switches should be dictated primarily by the portfolio’s need for balance, not by the allure ments the market might hold momen tarily in the way of yields or discount prices. T HE expansion of business loans common to the fall of the year continues to cut heavily into the lendable funds of commercial banks, underscoring all the more the subor dinate role played by investments this year among the earning assets of the deposit institutions. By October 1st, the commercial, industrial and agri cultural loans of Federal Reserve Sys tem member banks in 94 major cities had risen to $21,671,000,000, the high est on record. Likewise, all loans of such banks had risen to beyond $36,600,000,000 also a high record. If the hanks want to avoid being in constant and substantial debt to the Federal Reserve, they must necessari ly look to reducing the investment portfolio as the most handy means for obviating or replenishing recurring de ficiencies in reserve position. The commercial banks, then, are necessari ly sellers rather than buyers of Gov ernment securities and their offerings are probably more responsible than any other direct influence for the bear ish phase and higher creeping yields that have haunted the bond market all year. Blunt statistical testimony for this lies in the fact while all loans of the nation’s major banks were $385,000,000 higher on October 1 than on July 1, the banks’ total of loans and investments decreased $1,720,000,000 over the same period. This depletion of the invest ment account, with its upward pres sure on yields, can be expected to per sist over the fall season. Increased Borrowing Likewise, a seasonal increase in member bank borrowing from the re serve institution is to be expected. Such borrowings have been curtailed sharply since they reached a high of $1,408,000,000 at the end of July; nev ertheless they tend constantly to crowd and exceed the half-billion-dollar mark. As the fall season advances, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Market Temptations its traditional complex of temporary drains on bank reserves cannot but be reflected in higher borrowings from the central bank. It is estimated that borrowings at the Federal may exceed $2,000,000,000 before the end of the year. And if such borrowings cannot be balanced out by the shrinkage of commercial loans or by money market factors beyond the control of the banks, they can then be liquidated only by funds raised by the further sale of securities from the investment account. Investment Portfolio Of course the bank investment port folio, so far as holdings of United States obligations are concerned, is not only shrinking in size, but in aver age maturity, too. Especially among conservative banks little disposed to play the market for capital gains in the present unpredictably-geared econ omy, the investment portfolio, with the passage of time, must be getting shorter and shorter. For such banks, whose orthodox portfolios are now heavily weighted Instances of market temptations, es pecially to banks presently overinvest ed with short Treasury paper, were furnished in late September by prices touched by such bank-eligible bonds as the new 2%s of 1958, the 21/4s of 1959-1962 and the 214 s of 1956-1959. The discounts on such bonds, all of which seems -slated to be paid off in from seven to eight years at 100, ranged from % of a point for the 2%s to 3% points for the 214 s. However, who knows but what prices may be even more tempting a month hence? Or two months? Or six months? That is all the more rea son why liquidity in secondary re serve position and balance in portfolio distribution must necessarily come first in determining new investments for a bank to make and when to make them. Singularly enough, the present sea sonal expansion of bank lending is at tended by recurring apprehensions here and there of a pending “leveling off” or decline in capital requisitions and of business activity in general. In fact, talk in certain areas about “the Northwest ern Banker, November, 1952 44 Investments coming depression” is beginning to be reminiscent of the imminent “recov ery” of the Thirties—the “prosperity” that somehow managed to stay invisi ble “just around the corner.” The Business Picture The present business picture as a whole and the prospect for continued defense spending do not bear out the probability of any imminent depres sion, regardless of how overextended certain lines of industry or distribu tive business may be at the moment. No doubt there will come in due time a substantial readjustment of the econ omy on the downside, if only to serve the constructive ends of stabilization. The fact that the broad and sturdy SHORT TERM PAPER W e offer, subject to prior sale and usual option, the six-months notes o f the following makers in denom i nations o f $ 5 ,0 0 0 and multiples thereof. Bankers Investment Company Hutchinson Commercial Finance Company Muskogee Commercial Securities Co., Inc. Baton Rouge Community Credit Company Omaha Doty Discount Corporation Detroit Fidelity Acceptance Corporation Minneapolis Gale & Company St. Louis Liberty Loan Corporation Chicago Manufacturers & Jobbers Finance Corp. Shelby, N. C. O’Dea Finance Company Des Moines Pekin Finance Company Pekin, lUinO'is River Valley Finance Co. Davenport State Securities, Inc. expansion of the postwar economy has so far belied all of the chronically re curring apprehensions of economic collapse suggests that—like the cat once burned at the hearthside—there may be something pathological about the skeptical attitude instinctively ac corded the economy by a generation still sensitive to memories of the Great Depression. Commercial Lending Rate However, vital technical market questions—questions relating to the level of the prime commercial lending rate of the banks and to the rediscount charge of the Federal reserve institu tion—are necessarily brought up by any efforts to project the likely course of the economy from here on in. Professional investment circles have been rife for weeks with talk about the possibility of an upward adjust ment in the prime commercial lending rate from the 3 per cent level. The seasonal banking statistics carry a striking reminder of the fact that the 3 per cent rate is now approaching its first anniversary in a lending cli mate not unlike that which attended its establishment last December. It does not necessarily follow, how ever, that another such increase is in the offing. There are, of course, strong influences pressing on banks in certain areas to raise the prime rate further. On the other hand, the keen competi tive interest of banks to win and keep cost-conscious business is a factor that will tend to retard the spread of a higher prime rate. And the Federal Reserve System’s rediscount rate—is any markup from the 1% per cent level likely, especially if the prime commercial rate is in creased by influential banks? between charges bearing on the serv ice function of commercial banks and charges bearing on the stabilizing function of the reserve institution. A rise in the rediscount rate would be in order only if the volume of bank loans should rise substantially from present levels; and if it were estab lished at the same time that the rise was being fostered by the privilege of borrowing cut-rate at the Reserve bank. No such feverish exploitation of the rediscounting accommodation is yet visible in the normal seasonal expansion of bank loans that is now going on. Rather, the statistics seem to reflect the preference of member banks for holding their borrowings from the central bank down, even if they have to sell securities in the mar ket to do so.—The End. Will Travel Iowa Donald C. Marks, sales manager of the bank check division of Columbian Art Works, Inc., announces the ap pointment of William B. Norman as No Rate Increase At the moment, it seems assured that no rise in the rediscount rate will take place in the near future, even if some banks are moved to increase the prime commercial lending rate be yond 3 per cent. There is no reason why there should be any fixed “spread” between one interest level and an other, especially in the relationship W I L L I A M B. N O R M A N N ew sales representative sales representative for the State of Iowa. Mr. Norman has had experience in the insurance field and prior to that was associated with Sigmund Ullman Santa Fe Sun Finance & Loan Co. Cleveland Thorp Finance Corporation Thorp, Wis. LTni versai Finance Corporation Omaha FIRST OF IOWA CORPORATION IO W A AND GENERAL MARKET MUNICIPALS PUBLIC UTILITY, INDUSTRIAL AND RAILROAD SECURITIES R. C. LO N G & CD. ESTABLISHED 1924 22 WEST M O NR OE STREET C H IC A G O 3, ILLIN O IS Nforfiiwestern Banker, November, 1952 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis IO W A CORPORATE SECURITIES UNDERWRITERS DISTRIBUTORS 200 EQUITABLE BUILDING DES MOINES 9, IOWA Phone 4-7158 Investments Ink Company. During the last war, he served as a Lieutenant in the Air Corps in the Pacific theatre. New Staff Member President Russell L. Stotesbery, of the Marquette National Bank of Min neapolis, Minnesota, announces that John D. Cleary has joined the public relations staff of the Marquette Na tional Bank and has been assigned to the department of banks and bankers as a special representative, and will of the new Exchange State Bank to President Lloyd C. Hutchison. The new structure, located in the heart of the central business district, is built with an eye toward the future. For example, the bank has a 24 foot ceiling. This ceiling, with its myriad of tiny recessed incandescent spot lights highlighting the deep midnight blue fields, lends a feeling of spacious ness to the structure. Another example: The vault is lo cated in the southeast corner of the building. It would seem that a more logical place for this vault would be on the south wall. However, when Exchange reaches the point when an extensive expansion move is neces sary this vault will not have to be moved. The building merely will be extended, past the vault, onto the bank’s customer parking lot at the rear of the building. The exterior of the Exchange State Bank is distinguished by the large areas of glass around the vestibule. These panels of glare and heat-resist ant Solex glass, encased in aluminum, 45 rise 24 feet, from the sidewalk to the Indiana limestone parapet. Similar windows, 22 feet high, rise from a planting box on the north side of the An exterior view of the new Ex change State Bank, Kansas City, Kansas. The last word in modern architecture, the building is con structed and arranged so that future expansion will be comparatively easy. building. Eight panels, also 22 feet high, illuminate the lobby from the west. T Á jld & A w A iÍQ A A , IOWA AND NEBRASKA MUNICIPAL BONDS Public Utility, Industrial, Railroad & Corporate Securities CENTRAL REPUBLIC COMPANY JO H N D. C L E A R Y In department of banks and bankers act as an assistant to Otto Preus, vice president in charge of that depart ment. Mr. Cleary brings to the Marquette National Bank a diversified experi ence in both banking and insurance business, having been associated with the Richfield State Bank for a num ber of years and prior to that with the Farmers & Mechanics Savings Bank of Minneapolis. His most recent ap pointment was with the banking divi sion of the St. Paul Mercury Indem nity Company. One of the nation’s most dramatic examples of contemporary bank archi tecture was unveiled in Kansas City, Kansas, recently, when the Bank Building and Equipment Corporation of America formally handed the keys a y n e CHICAGO 90/ ILLINOIS OMAHA DES M O IN ES HAROLD R. HARRY CLEM ENTS IN S . EXCHANGE R. GREENW AY Vice Pres. <5 Res. Mgr. Vice Pres. & Res. Mgr. FARNAM BLDG. BLDG. M EM B ER S M ID W E S T STOCK EXCH AN GE M U T U A L IN V E S T M E N T FUN D S MUTUAL STOCK FUND In New Building W INVESTMENT BANKERS H u m m er C H IC A G O 8c C o , SELECTIVE FUND F A C E -A M O U N T C E R T I F I C A T E C O M P A N Y S Y N D I C A T E OF A M E R I C A P rospectuses o f these com panies available at offices in 148 principal cities o f the U nited States or fr o m th e national distribu tor and in v estm en t manager. D I V E R S I F I E D S E R V IC E S , INC. Established 1894 M EM BERS MINNEAPOLIS 2, MINNESOTA N EW Y O R K S T O C K E X C H A N G E https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, November, 1952 46 Investments Sixth Annual Conference More than 600 bank officers and di rectors from many states, representing correspondent institutions of First Na tional Rank in St. Louis, are expected to attend the bank’s sixth annual one- SPECIALIZING IN day conference of correspondents on Wednesday, November 19 at Hotel Jef ferson. Admiral Ben Moreell, chairman of the board, Jones and Laughlin Steel Corp., Pittsburgh, will deliver the din ner address. True D. Morse, president, Doane Agricultural Service, Inc., will discuss “What is Ahead for Agricul- AUTOMOBILE FIRE WINDSTORM economist, will talk on “Present Eco nomic Conditions;” Roland C. Behrens, vice president, St. Louis Union Trust Company, will summarize “The Gov ernment Bond Market,” and C. Arthur Hemminger, director of advertising and public relations, will discuss cur rent trends in bank advertising. William A. McConnell, president of First National Bank in St. Louis, will preside at all sessions. At the evening meeting, the visiting bankers will be joined by several hun dred business and industrial leaders of the St. Louis area who also will be dinner guests of the bank. Chairman of Bar Group INSURANCE CENTRAL STATES MUTUAL INSURANCE ASSOCIATION Mt. P leasant, Iow a E. A. H A Y ES President O. T. W ILSO N S e cre ta ry a . M cD o n n e l l W i ll preside at conference w il l ia m ture” at the luncheon meeting. At the afternoon session, Dr. Melchior Palyi, E sta b lish e d in 1929 Earl S. MacNeill, vice president of the Irving Trust Company, was elected chairman recently of the real prop erty, probate and trust law section of the American Bar Association at its annual meeting in San Francisco. A member of the New York Bar and a trust officer for more than 20 years. Mr. MacNeill is also chairman of the committee on trust information of The American Bankers Association. He is past president of the New York Fi nancial Advertiser and past chairman of the trust development section of the Financial Public Relations Asso ciation, as well as past chairman of the American Bar Association’s com mittee on pension and profit sharing trusts. Associate Councilmen FORESIGHT IS BETTER THAN HINDSIGHT That’s why your bank needs . . . A Saint Paul BANKER’S BLANKET BOND with EXTENDED CO VER A G E • The most comprehensive coverage you can have • Unexcelled claim service C A L L Y O U R S A I N T P AUL A G E N T . . . T ODAY u itX C O **** * '«V S -*•**££ Nort hwest ern Banker, November, 1752 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The appointment of associate coun cilmen of the American Institute of Banking for 1952-53 was announced recently by Martin J. Travers, nation al president of the Institute and vice president, Power City Trust Office, The Marine Trust Company of Western New York, Niagara Falls, New York. Associate councilmen in upper mid west states are: Iowa — Robert A. Hahn, assistant cashier, Merchants National, Cedar Rapids, and John S. Haver, cashier, Live Stock National, Sioux City. Minnesota — Ernest J. Haugberg, First National, St. Paul; Clifford C. Sommer, vice president, Midland Na tional, Minneapolis, and Clyde V. Stube, cashier, Western National, Du luth. Montana—N. Burton Felder, cash ier, First National Bank & Trust Com pany, Helena. Nebraska—R. Max Peterson, Conti nental National, Lincoln, and Lester E. Souba, First National, Wisner. North Dakota—M. Agnes Newman, assistant cashier, Dakota National, Fargo. South Dakota—Clarence B. Erick son, assistant cashier, Union Savings, Sioux Falls. 47 I N S U R A N C E From m to $ 7 5 ,0 0 0 of Annual t*remiams in Six Years How to Sell When You Have No Experience, No Customers, and No Prospects W ritten Especially f o r The N orth w estern Banker By CAMPBELL J. TELLMAN Gere & Stohrer, hie. Syracuse, New York C A M P B E L L J. T E L L M A N “ Prospecting is the ‘ fun-end’ of the business” N JANUARY, 1946, when 1 was discharged from the Army after 39 months away, my strongest desire was to spend a great deal of time at home with my family. The work I had left to go into service required travel ing most of each week. It was selling office supplies in Upstate New York. On one of these calls after the war, I called on an old customer who was a local agent. In the course of our visit he told me he wanted to bring a young fellow like me into his agency. From that started my career in the in surance business. He suggested my taking a training course being given for prospective agents. It was to be held at Syracuse University, spon sored by the New York Association of Local Agents. The instruction lasted for five weeks and followed the N.A.I.A. 100 Hour Course. It was an excellent prepara tion and ably taught by company men, most of whom were instructors in com pany schools. Every man in the class passed the New York State brokers’ examination on his first try. Upon receiving my broker’s license, I joined the firm of Gere & Stohrer, Inc. It is Syracuse, New York’s old est agency—celebrating its 113th birth day this year. Charles B. Gere, head of the firm, had handsomely survived the many cycles through which the business had gone during his lifetime. His sound advice and assistance were based on these many experiences. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Not being a Syracusan, my acquaint ances were limited. In fact, the an nouncement Mr. Gere wished sent upon my joining the firm went to 92 people. That was a slim prospect list. I soon exhausted my acquaintances in making calls, but where to look next! This soon became a simple matter. Syracuse was enjoying a phenomenal postwar growth; General Electric was building its great Electronics Park there; Bristol-Myers was building its Bristol Laboratories for the manufac ture of penicillin; Syracuse University was tripling its staff to accommodate the host of G. I.’s flocking to college, and Carrier Corporation was undergo ing a major expansion. Each day our local papers, The PostStandard and Herald-Tribune, carried news items of personnel who were coming to town. I wrote letters to each of these newcomers, welcoming them to Syracuse. A few days following my letters, I called on these people. The value of the letter was simply that it made the initial call much easier. As many as 50 per cent of these people be came customers. Most of them seemed grateful for these calls. I handled many transfers to the new location, an swered many questions about their new home town and built up a sub stantial file of expirations. Commercial Accounts After there was a flow of personal lines coming along, I raised my sights on commercial accounts. As an ap proach to these, I used surveys. The results were miraculous. Upon gath ering the information, I worked up the presentations evenings at home with the help of my wife. She did the typ ing and edited the narrative. The knowledge I acquired from the neces sary research and the new business it developed was amazing. Many times I’ve made surveys for firms on whom I had made “ Cold Tur key” calls without knowing anyone in the firm prior to my first call. The largest account I have was started in just that manner. Last year that firm paid us over $9,000 in premiums. In 1951 it seemed like a good idea to go back to school. This time it was to the Hartford Accident and Indem nity Company’s school. This proved to be a very worthwhile investment of a month’s time. The association with other men in the business from all parts of the country is a valuable ex perience in itself. There is an exchange of ideas that have been tested, to say nothing of the classroom work and discussion. That phase of the experi ence was excellent. How Business Comes As for the present, I find there is less and less time for prospecting. That’s a sad state because to me that is the fun end of the business. Busi ness now comes through activities, club associations, and referrals by customers. One of the rewarding re sults of conscientious efforts is the number of referred customers that (Turn to page 50, please) Northwestern Banker, November, 1952 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3 reasons w/>y moc/em 3 FILM PATTERNS Both sides o f records may be photo graphed simultaneously with images side by side; one side may be recorded on half the film width, running images down one side o f film and up the other; single sides can be recorded on full film width. SEE HOW YOU CAN SAVE WITH MODERN BURROUGHS MICROFILMING Rarely can the replacement of out-of-date equipment pay off as handsomely as in the case o f microfilming! Here is the kind of saving you can expect with new, modern Burroughs microfilming. The use of 8 mm photography on 16 mm film doubles the number o f images per foot of film. The high 37 to 1 reduction ratio further increases the saving. Film costs are slashed as much as 80 % in many cases. 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This year my total production should be very near $75,000. PREMIUM GROWTH (Continued from page 47) come to one because of satisfactory service rendered. That is our principal form of advertising. One thing of this type which pays a dividend is a system of claims follow-up. We insist on prompt disposal of claims and I know we do an unusually good job in this phase of the business. Production figures get monthly scru tiny. It’s surprising to me that for the past two years new business repre sents about 40 per cent of total volume. New business in that period averaged These days losses are raising hob with many agents, to the point where their market for new business is di minishing, it not lost. There is no sure-fire control over losses. In an ef fort to help the situation, however, I rarely solicit auto insurance. That comes without solicitation, if you start with the other lines. They are for the most part more desirable and since they are usually written for a threeyear term, harder to get. For six years I have averaged five new dwelling fire Creating FOR R A N K E R S W IT H A N E Y E TO T H E F U T U R E Our big expansion program, now in full progress —creates excellent opportunities for bankers with an eye on future safe and sound profits. Learn more about our tested “Banker’s Plan”—now in successful use by leading bankers in hundreds of communities. As a banker, you’ll appreciate the strength, stability and integrity of National Reserve Life . . . “ The Company That’s Marching Forward!” Write W. E. Moore, Agency Vice-President Agency Headquarters, Topeka S. H. Witmer, Chairman of the Board H. O. Chapman, President policies each month. Writing the car insurance for these home owners has proven to be much better than average from a claims standpoint. They seem to present less of a collection problem, also. I’m not sure my short while in the business allows me the liberty of giv ing advice. If I may, however, here are a few points for a newcomer to our profession. First is preparation that leads to a thorough understanding of the contracts. Second is the ability to present this understanding to laymen in clearly understandable language. Third is a systematic plan for making intelligent calls on prospects. Fourth is a conviction that the services you sell are essential to the economic well being of your customers. Fifth is a goal for which to work. Sixth is a routine to follow that makes the great est advantage of your time. Each of these points could be elab orated on at length. Many of them already have been by experts. They are working for me.—The End. Heads Out-of Town Division S. T. Mason Frey, vice president of Bankers Trust Company, New York, has been named head of the out-oftown division, it was announced by S. Sloan Colt, president. In this new LIFE INSURANCE COMPANY ______________________ TO P E K A « SIO U X FALLS____________________ t Gp-Matcntf ut one ojj the qaeote^t new w ealth poodacinq aaeai in the U n ite d Stated lilh eA e the iqu/Ui o f the puonee'i it d t p a eu a ili K ALLIED MUTUAL'S CASUALTY COVERAGES PROVIDE THE INCOME BACKBONE FOR MANY LEADING AGENCIES Y • Workmen's Compensation • Public Liability y S. T . M A S O N F R E Y To assist in banking department • Full Coverage Automobile W rite fo r ^ F acts on Agency C o n tra cts ALLI ED M U T U A L CASUALTY COMPANY Harold S. Evans, President 4th and Park Streets Des Moines 9, Iow a capacity, Mr. Frey will assist J. P. Dreibelbis, vice president in charge of the banking department. At the same time, it was announced that William H. Moore, vice president, would succeeed Mr. Frey as head of the Bank’s far west district. Mr. Frey joined Bankers Trust in 1932. He was elected assistant treas urer in 1943, assistant vice president in 1945, and vice president in 1948. / K N orthw estern Banker, November, 1952 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis \ Insurance Joins Investors Group Donald L. Barr, former assistant treasurer in charge of investment management for Dartmouth College, has joined Investors Diversified Serv ices, Inc., to assist in the portfolio cording to John Mosler, vice president of the 104-year-old firm, the new unit enables a file clerk “to select electri cally” any one of thousands of cards in less than three seconds. The automatic file is divided into 16 sections. Each of the sections is con trolled by one of 16 clearly identified push-buttons mounted on a panel board. When a clerk wants to find a card, she simply touches the properbutton. The file instantly revolves and automatically stops as soon as the desired section reaches the most effi cient position in front of the operator. 51 M ERCHANTS MUTUAL B O N D IN G C O M PA N Y Incorporated 1933 _____ Home Office 2100 GRAND AVENUE Des Moines, Iowa Heads Teacher Program D O N A L D L. B A R R In portfolio m anagement management of Investors Mutual, Inc., largest of three mutual funds dis tributed and managed by I.D.S. In addition to his responsibilities for management of the Dartmouth trust and endowment funds for the past 15 years, Mr. Barr also served as a special lecturer on investment management at the College’s Tuck School of Busi ness, Richmond Hill, L. I., before en rolling at Dartmouth. He was engaged in the investment field with Dick and Merle-Smith and previously with L. F. Rothschild and Company in New York, prior to assuming management duties at Dartmouth. R. Elmo Thompson, executive vice president of The First National Bank and Trust Company of Tulsa, was guest speaker recently at the annual Tulsa Chamber of Commerce “ Deer Teechur” program. “ Deer Teechur Day” serves as the official “welcome to Tulsa” of the Chamber and the city for new teach ers in the public schools. Initiated by the Chamber’s forum committee four years ago, “ Deer Teechur Day” has proved to be a most popular an nual forum event and has received high commendation from the admin istration and board of education of the Tulsa public schools, as well as wide publicity in national education circles. i WA 0 This is Iowa’s oldest surety company. A progressive company with experi enced, conservative management. We are proud of our three hundred bank agents in Iowa. To be the exclusive representative of this company is an asset to your bank. • E. H. WARNER President and Manager W . W . WARNER Secretary-Treasurer MU T U A L • N O N -A SSESSA B LE P O L IC IE S • M U LTIPLE LIN ES Rotary Card File Management will be able to save time, cut costs, and increase employe efficiency with a new electrically-op erated rotary card file soon to be made available by the office systems division of the Mosler Safe Company, Hamil ton, Ohio. The new office efficiency tool is an automatic, robot-like device. It was unveiled for the first time at Grand Central Palace in New York during the National Business show. Finger-tip, push-button control is an outstanding feature of the new elec trically-operated rotary card file. Ac- Ä (gj (E m te y (E m mm p ai i y 53 Scarborough’s planning and service are by-words in the banking fraternity. They are available to you, along with the broadest protection at the lowest cost. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis YEA RS OF S E R V IC E TO A G EN T S AND P O LIC Y H O LD ER S DE WITT, IOWA | | Scarborough & Company " Insurance Counselors to Banks FIR S T N A T IO N A L BANK B U ILD IN G . C H IC A G O 3, IL L IN O IS . STate 2 -4 3 2 5 Northwestern Banker, November, T952 52 U s e y o u r " F ir s t ” T e a m ...! THE L IN E -U P W ally Boss Vice President Elmer Volkenant Vice President Lee Sauer Assistant T ice President Lloyd Leider Assistant Vice President Don B uekm an Assistant Cashier Don Sm ith Assistant Cashier Leo Erlon Representative T h e s e m e n fo r m t h e c o r r e sp o n d e n t b a n k t e a m a t th e F irst in S a in t P a u l. T h e r e ’ s n o p la to o n s y s te m h ere— n o s u b s t it u t e s . T h e y are all o n t h e h a ll all t h e t i m e . B ack ed b y years o f ex p erien ce, o u r “ t e a m ” o f c o r r e sp o n d e n t b a n k in g v etera n s is r a r in ’ to go to w ork fo r Y O U — s im p ly c a ll t h e s ig n a l, C E d a r 1575! For any helpful service THE FIRST IN SAINT PAUL IS THE BANK TO CALL . . . St. Paul Cedar 1575 R IC H A R D C . L I L L Y , C h a irm a n , B oard o f D irectors P H IL IP L. R A Y , C h a irm a n , E xecu tive C o m m i t t e e J U L IA N B . B A IR D , P resid en t The 99 Y E A R S O F F R IE N D L Y S E R V IC E https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis F IR S T N A T IO N A L B A N K ofSaint Paul M e m b e r Fe deral Dep osit I n su ra n c e C o rp or at ion NO O TH E R C O R RESPO N D EN T C AN D O M O R E F O R Y O U 53 and Nancy Koch were advanced to assistant cashiers. New Glencoe Officer Leonard Hoese of New Germany, Minnesota, has been employed as as sistant cashier at the Security State Bank, Glencoe, Minnesota. Mr. Hoese has been previously employed for sev eral years at the First State Bank of New Germany. O r c i * >1.000 Visit W in on a Itanh O FFICERS and directors of the Winona National and Savings Bank, Winona, Minnesota, issued a blanket invitation to residents of southeastern Minnesota and western Wisconsin to be the bank’s guests last month at the grand opening of the completely remodeled bank buiding at Fourth and Main Streets. More than 5,000 persons toured the new building. Thirty men from St. Louis—marble, bronze and interior design specialists — and an additional crew of local craftsmen, averaging ten to 12 men, have rushed the modern interior to completion in near-record time. In general, areas serving major de partments in the bank have been re shuffled and enlarged on the main banking floor. All fixtures have been Hold Open House Officials of the Union State Bank, Brown’s Valley, Minnesota, held open house last month. The bank building has undergone a complete remodeling the past six months, together with an additional banking room added in the rear of the building. Completes 60 Years Last month employes of the First National Bank, Chisholm, Minnesota, held open house in honor of Georgd Train, who completed 60 years of banking service. Observes 90th Year J. C. Miller, who has been identified with banking at Bertha, Minnesota, ever since there has been a bank there and is still active, observed his 90th birthday recently. Mr. Miller is president of the First National Bank. Elysian Anniversary Recently the Elysian State Bank, Elysian, Minnesota, celebrated its 45th anniversary. Watson Anniversary of the newly remodeled Winona National and Savings Bank. Modernistic design and office furniture provide a pleasant atmosphere for working and transacting business. IN T E R IO R V I E W Visitors to the classic marble struc ture set back from one of Winona’s major business arteries saw one of the most modern institutional banks in the nation today. An all-inclusive $100,000 interior face-lifting has given the building a “new look,” said to be without parallel for banks of its size anywhere. The Bank Building & Equipment Corporation of America, with head quarters in St. Louis, conceived the completely rearranged floor plan and the host of all-modern features and appointments after many months of architectural, design and construction planning. The corporation, prime con tractor for the project, launched the extensive remodeling April 13th this year and announced its completion recently. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis remodeled; traditional-type office fur niture replaced with functional furni ture of the most modern approved de signs, office remodeled and modern ized, new carpeting and drapes in stalled, a new air conditioning and heating system placed in operation and a large number of modern service features adapted for use by Winonans. Cottonwood Elects Guy S. Bacon, president of the Empire State Bank, Cottonwood, Min nesota, announces that Paul O. Pear son, who has been cashier since Feb ruary, 1951, has been promoted to first vice president, and Emil V. Slavick, assistant cashier since February, 1951, has been promoted to cashier. Mayme Reishus, Arlene A. Prechel The Watson State Bank, Watson, Minnesota, was very well satisfied with the crowd that helped them cele brate their first birthday. Duluth Changes Guilford S. Lewis last month was elected first vice president of the West ern National Bank of West Duluth, Minnesota, it was announced by Alfred Hoel, president, following a meeting of the bank’s board of directors. Mr. Lewis succeeds Hilding J. Olson, who moved to Iron River, Michigan, last spring. At the same meeting, Clyde V. Stube, cashier, was advanced by the board to vice president and cashier. Mr. Stube became associated with the bank as teller in 1946. MORE MINNESOTA NEWS (ON PAGE 58) Northwestern Banker, N o v e m b e r, 1952 54 Y IN former years, Minneapolis A Sbankers took leading roles in the Minneapolis and Hennepin county Community Chest campaign. Serving as vice chairmen were Donald N. Judkins of the First Hen nepin State Bank; Robert J. Sapp of the Northwestern Bank, and Harvey E. Petersen of the First National Bank. William Chapman, vice president of the Midland National Bank, headed the larger firms’ division campaign. Assisting him were Morrow Peyton of the Northwestern National Bank and Maury Stroth man of the Minne apolis Federal Reserve Bank. Allan Moore, vice president of the First Na tional Bank, served as chairman of the district organization. Assisting him as vice chairman was Raymond P. Clausen of the Northwestern Na tional Bank. In charge of district firms under Mr. Moore was John Nevin of the First National Bank. * =1= * Three Twin Cities bankers went to Minot, North Dakota, recently to inaugurate the Minot chapter of the American Institute of Banking. They are George E. Maier, vice president of the Cherokee State Bank of St. Paul and president of the St. Paul AIB chapter; William Bronner of the Federal Reserve Bank of Min neapolis, president of the Minneapo lis chapter, and Emmet Erickson of the Farmers & Mechanics Savings Bank of Minneapolis, district consul. Things are Happening in TAKE TITANIUM. Lighter than steel, stronger than aluminum, it's used in jet motors, combustion engines, chemical equipment. Canada has estimated reserves of more than 125 million ions of ore in one deposit alone. ) TAKE URANIUM ORE. Canada is the world's second largest producer . . . is now building what may prove to be the world’s largest Uranium refinery. T-Lake any of the many fields of opportunity to be found in Canada: horizons are broad; the possibilities endless. American banks and business firms who wish to explore them fully are invited to channel their activities through The Royal Bank of Canada. A network of over 700 branches offers complete bank ing facilities . . . nation-wide, up-to-the-minute information on all business and industry. Gordon Murray, president of the First National Bank of Minneapolis, has been named to the finance de partment committee of the Chamber of Commerce of the United States. * * * John A. Peterson, accountant for the First National Bank of Minne apolis, took part in a panel discussion on controlling inventory size at the first of a series of five seminars con ducted by the Twin Cities chapter of the National Association of Cost Accountants. * * * Wendell T. Burns, senior vice presi dent of the Northwestern National Bank of Minneapolis, was elected president of the savings and mort gage division of the American Bank' ers Association at the ABA conven' tion in Atlantic City. He has served on the ABA’s com mittee on federal legislation, credit policy commission and the mortgage committee. His new title automatic ally makes him a member of the group’s administrative committee, which helps govern the association, * * * The Minnesota group of the Invest ment Bankers Association were din ner hosts recently to Robert S. Mac. farlane, president of the Northern Pa cific railway, and members of the executive staff. * * * Directors of 35 affiliated banks of the Northwest Bancorporation met in Minneapolis recently for their fifth Over 770 branches in Canada, the West Indies, Central and South America; New York, Paris, London. N E W Y O R K A G E N C Y : 6 8 W illia m S t ., N . Y . 5 HEAD OFFICE: MONTREAL THE ROYAL OF CANADA T O T A L A SSETS EX C EE D Northwestern Banker, November, 1952 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $ 2 ,5 0 0 ,0 0 0 ,0 0 0 Midland National Bank M i n n e a p o l i s 1, M i n n . — M A i n 0 5 1 1 MEMBER FEDERAL D EPOSIT IN SU RA N C E CORP, Minnesota News 55 3 fa v q u e tte N a m es N ew O fficers L. STOTESBERY, presi RUSSELL dent of Marquette National Bank of Minneapolis, has announced the election of three new officers by the board of directors. E. L. Kulander and Don R. Knight were named assistant vice presidents, and Glen Sawyer was elected trust officer. Sig Silverness, assistant vice president, assumes new duties as pub lic relations representative. Mr. Kulander began his banking ca mercial department, and as teller. Knight will be commercial loan offi cer and supervisor of records, com mercial loan department. A graduate of Yale Law School, Glen Sawyer has practiced law in Minneapolis, was in the legal depart ment of the Federal Land Bank in St. Paul, and then in 1935 went to Lanesboro, Minnesota, to establish his own law practice. From 1942 through 1946, Sawyer was Filmore county at ACCOUNT SERVES E. L. K U L A N D E R D O N A L D R. K N I G H T A sst. V ice President A sst. V ice President GLEN S A W Y E R Trust Officer S. R. S I L V E R N E S S A sst. V ice President reer in Swea, Iowa, in 1926, and has been in the banking field ever since. In 1937 he came to Marquette, where he has been in the commercial depart ment, installment loan and auditing. Mr. Kulander’s new duties include su pervisor of the commercial depart ment. Don Knight, a native of Minneapolis, started at Marquette in 1937, after leaving the University of Minnesota. He has worked in proof department, bookkeeping, installment loan, com- torney. Mr. Sawyer in 1950 joined Marquette Bank in the mortgage de partment. Mr. Silverness entered the banking field in his home town, Oak Park, Min nesota. After a short period at Cam den Park State Bank, Silverness went to Marquette National Bank in the fall of 1929. For many years he was head teller, and in 1947 was elected assist ant cashier, connected with the com mercial department. In January, 1949, he was named assistant vice president. annual conference with officers and directors of the corporation. J. Cameron Thomson, Bancorporation president, led a roundtable dis cussion of business and agricultural conditions. Also participating were Arthur R. Upgren, economic consult ant to the Minneapolis Star and Trib une; Marvin Peterson, research di rector for the Federal Reserve Bank of Minneapolis, and Edward P. Wells, vice president of the Northwestern National Bank of Minneapolis. Directors attending from Minne apolis were John 1). Bleecker, Clar ence R. Chaney and E. A. Schlampp, and from St. Paul, James E. Kelley. Other directors from Minnesota were Roland H. Aaker, Montevideo; John A. Buxton, Owatonna; Bill Roy Ekstrand, Thief River Falls; E. H. Finkelnburg, Winona; J. Roy Geier, of C A L IF O R N IA ! A correspondent account with Bank of Am erica en ables you to send your items for any of more than 300 C alifo rn ia communities — direct to Bank of Am erica branches in those localities. One account either in Los Angeles or in San Francisco makes thistime-saving direct routing service av a ila b le . Sell Bank of America Hospital and Surgical Insurance for Bankers Now your preferred risk classification as a Banker makes it possible to include your wife and children at the sam e L O W RATES. Room and Board from $4.00 to $12.00 per day Surgical Benefits of $75.00, $100.00 or $125.00 Fee of $4.00 pays for $8.00 a d ay Hospital Policy to Mar. 15, 1953 Minnesota Commercial Men's Association 2550 Pillsbury A ve. So. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Minneapolis 4, Minnesota Travelers C h e q u es to your customers. They are known and honored throughout the world. Bank of America NA TIO N A L J avY n g s A SSO CIATION M EM BER FEDERAL D E P O S IT IN S U R A N C E C O R PO R ATIO N J Northwestern Banker, November, 1952 56 y Minnesota News Ortonville; M. B. Hagen, Hopkins; Bardon Higgins, Duluth; Robert W. Klemmer, Faribault; E. Ah Molle, Mar shall; J. F. Parker, Duluth; Roland S. Patterson, Mankato; Henry A. Swan son, Jr., Red Wing; Richard A. Trow, Albert Lea; Roy Watson, Jr., Roches ter, and Edward P. AVeber, St. Cloud. From Iowa: William Friedman, Des Moines; David A. Noble, Sioux City, and Charles E. Strickland, Mason City. From Montana: I. A\T. Church, Great Falls; Joseph L. Kelly, Anaconda, and Thomas P. Patterson, Helena. From Nebraska: Darrel D. Dudley, N o r f o l k , and Charles E. Peterson, Omaha. From North Dakota: Paul G. Brewer and F. B. Heath, Bismarck; Max Gold berg, Fargo, and W. Maurice Harring ton, Minot. F r o m South Dakota: Robert AAT. Best, Sioux Falls; Fred P. Hampton, Sturgis; J. A. McGillivray, Watertown, and G. T. Mickelson, Selby. From W i s c o n s i n : Herman A. Tausche, La Crosse. * * * The First Minnehaha National Bank of Minneapolis announces its capital has been raised from $100,000 to $300,000 by transferring $100,000 from sur- p us and $100,000 from undivided profits. Steadily expanding profits, a sub stantial demand for loans and gen eral increase in the bank’s services were cited by Arvid A. Lund, vice president. Deposits now have risen to more than $13,000,000, making the bank the largest outside of the Min neapolis loop in terms of deposits. The bank has a $200,000 expansion and remodeling program under way. =i= * * Frank B. Week, vice president of the First National Bank of Minneapo lis, has been elected president of the Corporate Fiduciaries Association of Minnesota. Other officers are Harold C. Soderman, secretary and treasurer of the First Trust Company of St. Paul; Earl Cardie, trust officer of the Mar quette National Bank of Minneapolis, and E. E. Shervy, vice president of the Northern National Bank of Du luth, vice presidents, and Sophus T. Persen, vice president of the North western National Bank of Minne apolis, secretary and treasurer. * * Ben C. McCabe, prominent Minne apolis grain firm executive and a member of the board of directors of the Midland National Bank of Min neapolis, has been elected president of the Minneapolis Grain Exchange. Mr. McCabe is president of McCabe Bros. Company, Pacific Grain Com pany and the International Elevator Company. He is a member of both the Chicago and Duluth boards of trade and is a director of Allied Mills of Chicago and of the Northwest Country Elevator Association. >i= * * Lyman E. Wakefield, Jr., of the First National Bank of Minneapolis has been elected to the board of di rectors of the Orchestral Association of Minneapolis, which operates the Minneapolis Symphony orchestra. * * * Hale Towne, vice president of the Mercantile Trust Company of St. Louis, addressed the third session of a forum sponsored by the American National Bank of St. Paul. Primary objective of a real investor, he explained, is to invest funds to ob tain as much income as possible with out too much risk of capital. * * * Eew J. AATallace, trust officer of the First National Bank of Minneapolis, has been elected to the board of di(Turn to page 59, please) I ♦ A- * V V 7 X CARL L. FREDRICKSEN President CLIFFORD L. ADAMS V ice President WILLIAM C. SCHENK V ice President JOHN S. HAVER C ashier STANLEY W . EVANS Asst. V ice President JAMES L. SMITH Asst. C ashier an d Auditor KINLEY W . SMITH Asst. C ashier BEN E. HOLTDORF Asst. Cashier R. K. (Dick) DRAPER Field R epresentative L To members of the Iowa Bankers Association and to all visiting bankers who will attend the annual Iowa convention this month in Des Moines, we extend sincere greetings. Our offi cers will be there to renew old acquaintances and make new friends for the Live Stock National Bank in Sioux City. V y y X MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION Northwestern Banker, November, 1952 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis \ 57 Sonili Ilakota \ NEW S ERLING HAUGO President Sioux Falls CARL E. BAHMEIER, JR. Secretary Huron N ew Orowp O f field's E le c te d 4 The South Dakota Fall group meet ings just completed not only smashed previous attendance records, but met with enthusiastic response every where. The addresses of Verne Abeel, President Haugo, and Dr. LeRoy Lewis proved most popuar; while Edward McFaul entertained the b a n q u e t groups with his wit and penetrating psychological analysis. The following officers were elected: Group 1 President—Charles E. Lee, Presi dent, First National Bank, Volga. Vice President—Tony Westra, as sistant vice president, Northwest Se curity National Bank, Sioux Falls. Secretary-Treasurer—H. G. Mosby, vice president and manager, Harris burg Branch, Sioux Valley Bank. Group 2 President—E. H. Peters, vice presi dent, Security Bank, Webster. Vice President—C. H. Halverson, cashier, Citizens State Bank, Castlewood. Secretary-Treasurer — Robert Camp bell, executive vice president and cash ier, First National Bank, Frederick. Group 3 assistant cashier, First National Bank of the Black Hills, Rapid City. Rushmore State Opening The Rushmore State Bank, which re cently moved from Hill City to Rapid City, South Dakota, opened last month with the newest of banking equipment and decorations, “especially engi neered for comfort and sight,” Presi dent John Vucurevich, declared. He pointed out most of the materials used in the new building on St. Joe street across from the Jefferson school are made and processed from Black Hills natural resources. About the only exception is the structural steel and steel products, he added. A feature of the new bank will be the “drive-in” window on the east side where customers can drive up and transact banking business without get ting out of their cars. There is ample parking space. In keeping with the name, a replica of Mount Rushmore is pictured on the new checks to be used by the bank. The “Shrine of Democracy” is repro duced in an over-all design on the checks by John Wenrich, artist for the Todd Company, Rochester, N. Y., check manufacturers. The bank will also maintain its of fices in Hill City to serve patrons in that area, Mr. Vucurevich said. John E. Kraft is executive vice presi dent of the bank. N. W. Wilson is vice president and cashier; R. R. Philips, assistant cashier, and R. F. Jacobs manager of the Hill City branch. New at Springfield A main street improvement which is outstanding is the new plate glass and glass block front installed recent ly at the Springfiield State Bank, Springfield, South Dakota. The front windows are lower with glass block above, and the door is full length plate glass with glass block panel above. It is the latest in artistic front treatment. Madison Enlarges The Security Bank, Madison, South Dakota, is constructing five additional rooms under the sidewalk around the bank. The space to be used will be about 12 by 100 feet although the ex cavation is larger to allow for the sidewalls. There will be 1,200 additional feet of floor space, nearly as much as the area of the present basement. The new space will be used as a fireproof record-room, a supply room, an insurance room, a fuel room and A n n u a l R ou n d -u p in Sioux V ails President—Charles Tomhave, cash ier, Vivian State Bank, Vivian. Vice President — Howard Peters, president, Bank of Alpena, Alpena. Secretary-Treasurer—Gay G. Klatt, installment loan director, Mitchell Na tional Bank, Mitchell. Executive Council Member—Ken neth G. Klatt, cashier, Dakota State Bank, Tripp; (3 year term succeeding L. E. Weaver, Miller). Group 4 President—A. O. Rolien, president First National Bank, Lemmon. Vice President—John Scanlon, cash ier, Bank of Hoven, Hoven. Secretary-Treasurer—J. Dale Lesher, cashier, Bank of Mobridge, Mobridge. Group 5 President—Charles Pendo, executive vice president and cashier, Miners and Merchants Bank, Lead. Vice President—W. E. Shoberg, vice president, Rapid City National Bank, Rapid City. Secretary-Treasurer—Richard Berry, https://fraser.stlouisfed.org / Reserve Bank of St. Louis Federal ROUND-UP -One hundred fifty correspondent bankers, livestock commission men, feeders, and four major meat packing company representatives attended the recent annual Livestock Round-up held in the lobby of the Northwest Security National Bank, Sioux Falls, where the above picture was taken. This is an annual event, with speakers from South Dakota State College, Iowa State College, Sioux City, and Minneapolis. The chief topic of conversation is usually one of feeding livestock, and management of loans. After several hours of concentrated study, time is allotted for round-table discussion. A dinner for the entire group follows. Northwestern Banker, November, 7952 58 South Dakota News an employe lounge. The basement rooms will have separate heating, ventilating and air conditioning units. The employe lounge will be equipped for the convenience of the 19 employes, as well as for evening meetings of community groups and organizations. There will be a fully equipped kitchen. S io u x F u lls N e w s B ANKERS of Group 1, South Da kota Bankers’ Association, held their annual convention here. Group 1 takes in the southeastern part of the state. Officers elected were Charles E. Lee, president of the First National Bank of Volga, president; Tony AVestra, assistant vice president in charge of agricultural loans of the Northwest Security National Bank in Sioux Falls, vice president, and H. G. Mosby, vice president and manager of the Harrisburg branch of the Sioux Val ley Bank, Sioux Falls, secretarytreasurer. Nearly 200 persons, members of the association and their wives, at tended a banquet at the Cataract Ho tel. * * The 12 nominees for posts on the Chamber of Commerce board of di- Back in the war years reference to B17 meant only one thing — the g o o d old dependable bom ber that made things so unpleasant for the enemy. As used here, it refers to a simple but functional sort sym bol printed on a bank check to indicate that the maker’s name begins with Bli-Bn, and its purpose is to assist bank people to fine sort to the books with greater speed and accuracy. Som e large banks use a small number o f single letter symbols to give them a rough sort to the bookkeeping divisions, in each o f which there might be ten or fifteen ledgers. A few banks now are using the fine sort symbols which break down to parts o f the individual ledgers. A large number o f banks are now con templating the adoption o f these fine sort symbols, and it is this far-flung interest which makes the subject news worthy. N o rth w e s te rn B anker, N o v e m b e r, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1952 rectors included V i . C. Duffy, presi dent of the Union Savings Bank; Frank J. Cinkle, vice president of the National Bank of South Dakota, and Tony \ATestra, agricultural direc tor of the Northwestern Security National Bank. Guest speaker at the Chamber’s 45th annual meeting was George Keith Funston, president of the New York Stock Exchange and former Sioux Falls resident whose father is a former Sioux Falls banker. * * * Altogether, business in Sioux Falls during September showed a pro nounced rise over the corresponding month a year ago. Bank clearings shot up by more than $2,000,000, in creasing from $24,499,886.44 in Sep tember, 1951 to $26,740,225.14 in September, 1952.—The End. MORE MINNESOTA NEWS Resigns at Tracy Ted L. Rask, vice president and cashier of the Farmers & Merchants State Bank, announced his resignation and plans to leave Tracy, Minnesota. Mr. Rask plans to leave in mid-No vember to accept a position as presi- If, as is indicated, banks are goin g to print sort symbols on their checks to facilitate check handling, they might just as well print the customer’s full name because the additional cost w ould be infinitesimal and the printed name would have some considerable customer relations value. A few o f our customers are doing this now and a number o f others are considering doing it. Appar ently this business o f sorting checks by inexperienced people is quite a headache. W e l l . . . where we com e into the pic ture is in the execution o f the thousands o f small, individual orders required when sort symbols have to be imprinted — usually one hundred checks to the order. W e know how to give service on small packages. W e have the facilities to do it w ell. W h eth er you require 10,000 such orders per year, or 100,000, we are mentally attuned and physically equipped to provide top-notch service. dent of the Northwestern Bank of Lewistown, Montana. Leaves for West A. C. Tiedeman last month resigned his position as cashier of the Union State Bank, Thief River Falls, Minne sota, and is leaving with his family for North Sacramento, California, where he will be employed in the home office of the California Liquid Gas Corporation. Kerkhoven Elects At a special meeting of the stock holders of the State Bank of Kerk hoven, Minnesota, Mrs. Pearl Hough was elected to the board of directors. She fills the vacancy caused by the death of her husband, O. G. Hough. At the same time, George L. Engh was elected by the board of directors as executive vice president. Blue Earth Anniversary Stockholders, officials and employes representing every bank in Faribault county, turned out last month to pay tribute to the Blue Earth State Bank, Blue Earth, Minnesota, on its 50th anniversary at a dinner at the River side Country Club. Total attendance was placed at 65. W. J. Schwen, Sr., chairman of the board of directors of the Blue Earth State Bank, welcomed the guests. He turned the meeting over to K. 0. Satire, president, who pointed out that the history of the bank was quite rep resentative of changes taking place in banking in general during the past 50 years. Walter H. Schneider, cashier and oldest employe of the local bank, traced the history of the bank. Harry Pfeffer, Sr., the only original stockholder who attended the anniver sary party, also gave a few brief re marks. Observes 50 years Last month marked the 50th year milestone in the banking business for D. J. Schroeder, executive vice presi dent, Farmers State Bank, Mountain Lake, Minnesota. He was showered with bouquets of flowers and congrat ulations for that occasion. New Fergus Falls Firm The Otter Tail Finance Corporation of Fergus Falls, Minnesota, has been organized by a group of Fergus Falls and western Minnesota business men. The company expects to engage in the general finance business. The officers and directors of the cor poration are are follows: W. R. Olson, Fergus Falls, president; president of Olson-Enstad-Larson, Inc., and W. R, South Dakota News Olson Company; H. E. Swenson, Fer gus Falls, vice president; vice presi dent of the First National Bank of Fergus Falls; B. K. Soby, Fergus Falls, director; partner of John Dieseth Construction Company, road contrac tor; S. R. Anderson, Milan, lumber, hardware, implement dealer and vice president of the Peoples State Bank of Milan; H. B. Myhre, Detroit Lakes, wholesale dealer; M. T. Enstad, Fergus Falls, secretary; vice president of 01son-Enstad-Larson, Inc., and E. S. Lar son, Fergus Falls, treasurer; treasurer of Olson-Enstad-Larson, Inc. TWIN CITY NEWS (Continued from page 56) rectors of the Hennepin County Tu berculosis Association. * * * S. L. Jerpbak, president of the Richfield State Bank, announces elec tion by the bank’s board of directors of Chester N. Eggen as comptroller. Mr. Eggen previously served as vice president of the Citizens State Bank of St. Louis Park and as cashier of the First National Bank of Marquette, Michigan. 59 Also announced was the promotion of Robert J. Lien to cashier. He has been with the Richfield bank since 1949.—The End. Joins Faith Bank Russel] Birkeland has accepted a position with the Farmers State Bank at Faith, South Dakota, and started his new work last month. Mr. Birke land is experienced in the banking business, as he was connected with the Farmers State Bank in Dupree for several years. Shakopee Director Fred A. Weiland, a member of the First National Bank, Shakopee, Min nesota, since 1933, was elected to the board of directors of the banking in stitution at a meeting recently. Mr. Weiland, who succeeds the late J. H. Moore, was named cashier of the bank this year. Forest Lake Improves Construction on the addition to the Forest Lake State Bank, Forest Lake, Minnesota, continued last month as the main structures of the walls, roof and floor were completed and the rear wall of the older building was removed to join the two. The new rear addi tion will provide office and conference rooms, while the old front office will give way to provide additional cashier windows. Two Harbors Remodels The First National Bank of Two Harbors, Minnesota, is doing business in a temporary location during exten sive remodeling of the interior of its banking quarters. Rochester Is Host The Union National Bank of Roches ter, Minnesota, was host to officers of correspondent banks at the annual golf tournament and dinner last month at the Rochester Golf and Country Club. Appoint Deputy Jay R. Nims, 36, supervisor of the small loan division in the State Bank ing Department, recently was ap pointed deputy banking commissioner. He lives in Minneapolis. Mr. Nims fills the vacancy created recently by elevation of Charles Wen zel to state banking commissioner by Governor Anderson following resigna tion of Commissioner A. W. Hoese. Mr. Wenzel announced also that R. A. Christenson, Minneapolis, has been appointed to replace Mr. Nims as head of the small loan division. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis NORTHWEST SECURITY NATIONAL BANK of S i o u x F a l l s , Sout h Dakot a South Dakota’s Leading Bank BRANCHES AT BROOKINGS, CHAMBERLAIN, DELL RAPIDS, GREGORY, HURON, M ADISON A ffiliated w ith N o rth w est B ancorporation M em b er F ed era l D e p o sit In su ra n ce C orporation Northwestern Banker, November, 1952 60 WITH THE FRATERNITY For many years our correspondent banks have counted on us for prompt, confidential assistance and “ know-how” to help TH EIR oil industry customers. If you are not already enjoying this maximum service . . . contact N E T . . . in addition to adequate resources, com plete facilities and prompt service, you will find full coopera tion from NBT . . . the hank in good standing with the great oil industry. 'BbtiQiG 'Bank QjneAxai National B a n k O f f e r in g Co m plete b a n k in g and of tru st T ulsa Se r v i c e s Member Federal Deposit Insurance Corporation N o r th w e s te r n Banker, N o v e m b e r, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1952 61 The charter was presented to L. E. Herzog, president of the local chapter, by Emmett Erickson of the Farmers and Merchants Savings Bank of Min neapolis, who is executive councilman for District 10 of the AIB. Moves to Golva Hankers HE oil industry is not looking for handouts or subsidies in North Da kota, C. E. Boone, vice president of Amerada Petroleum Company, told between 80 and 90 bankers at the an nual meeting of the northwest district of the North Dakota Bankers Associa tion in Williston last month. In addition to western North Da kota bankers, there were representa tives from banks in Minneapolis, St. Paul, Fargo, Chicago and Dallas at the meeting in the Plainsman Hotel. Mr. Boone stated, “ It (the oil indus try) expects to pay taxes here and it believes that the determination of what taxes it is to pay will be made reasonably and fairly, after full and impartial consideration of conditions existing at the time of that determi nation.” The speaker pointed out the search for oil in North Dakota is not new, citing that 26 holes, all dry holes, were drilled in the state from 1935 to 1950. Pointing out the continual increase of exploration, Mr. Boone cited figures which show that in 1950 geophysical crews spent 90 crew months in North Dakota compared to 152 in 1951 and 332 so far this year. He told of a canvass of register of deeds offices in North Dakota which show that 311/^ million acres of North Dakota’s 45 million are under oil and gas lease, more than 70 per cent of the state. He said the approximate figure was reached by asking each reg ister of deeds the estimated amount of land leased in his county. How drilling operations have been stepped up was explained by Mr. Boone. Twenty-six wells were drilled prior to 1915, 18 in 1951 and 80 so far this year, with 26 more drilling. The figures include dry holes. Since April of 1951, Mr. Boone said, 62 oil wells and nine dry holes have been completed in this area, with 21 more drilling. “All of this is but the beginning—the start—of an oil indus try in North Dakota,” he added. Mr. Boone went on to explain that only a small part of North Dakota has been explored and only a smaller frac tion has been condemned by the drill. T https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis E. T. Kennedy, formerly of Mur dock, Minnesota, is now serving as cashier of the First State Bank of Golva, North Dakota. He has consid erable banking experience, having been employed in banks in Minnesota, and did income tax work for the Swift County Bank of Benson, Minnesota. Hear Amerada Atan He believes discovery of oil will not be confined to the Tioga, Beaver Lodge and McKenzie county areas. “We may reasonably expect a con tinued high level of exploration, and drilling activity, and from that the gradual building of a North Dakota oil industry.” Bismarck Bank Plans Plans and specifications for a new First National Bank building in Bis marck, North Dakota, have been re vealed and invitation to bid were is sued last month. Evan D. Saltzman, president of the bank, announced that the plans call for construction of a new bank build ing on the site of the present building at 322 Main Street, which will be razed. The new building will be a twostory, fireproof structure, with a full finished basement. It will be faced on the exterior with Indiana lime stone, with red roman brick trim and with polished red granite for the lower stories. Valley City Director Clarence R. Bruns has been added to the board of directors of the Ameri can National Bank of Valley City, North Dakota, R. M. Hougen, bank president, announced recently. Addition of Mr. Bruns increases the board to six members. Action to in crease the size of the board was taken at a recent meeting of stockholders in an effort to obtain a wider expe rience among its directors to touch all phases of the banking business. The new director was born and raised in Noltmier township and is now one of Barnes county’s most suc cessful farmers. Robinson Anniversary The Security State Bank of Robin son, North Dakota, observed its 30th anniversary last month, announced Verne Wells, president of the insti tution. On August 29th they completed 30 years of continuous banking service to northern Kidder county. They were established in 1922. Byron R. Laird Byron R. Laird, 66, president of the Security State Bank in Tyndall, North Dakota, died at St. Michael’s Hospital recently, where he had been a patient for several weeks. Since his illness, his son, Donald, who is cashier of the bank, has been in charge of affairs of the institution. Minot A.I.B. Chapter The Minot, North Dakota, chapter of the American Institute of Banking officially was organized last month at a banquet meeting in the Silver Saddle Room of the Clarence Parker Hotel. Northwestern Banker, November, 7952 62 y ^ / / te C / fV ffcú srá DIRECTORS The IVmill STATES SITUIVII, ISAAK MELVIN BEKINS, President Bekins Van & Storage Co. SAMUEL L. COOPER, President Orchard & Wilhelm Company Of SANFORD B. COUSINS, President North-western Bell Telephone Company o mah a EDWARD FLYNN Director and Member Executive Committee Burlington Lines JOHN J. HANIGHEN, JR., President J. J. Hanighen Co. s é -tn / n e r f.'n c e EARL G. HAWKINS, President and Treasurer Parsons Construction Company, Inc. GLENN E. JENNINGS, President Wright & Wilhelmy Company A $1,0 0 0 ,000.00 Increase in CAPITAL and SURPLUS RALPH E. KIPLINGER, President Guarantee Mutual Life Company ARTHUR A. LOWMAN JOHN F. MERRIAM, President Northern Natural Gas Company Resulting in the following Capital CHARLES E. PETERSON, President Byron Reed Company. Inc. Accounts for the Bank HENRY W. PIERPONT HARRY F. REED EDWARD W. LYMAN, Vice President of the Bank CASPER Y. OFFUTT, C a p i t a l .......................... $ 2 ,000 ,000.00 S u r p l u s .......................... 2 , 000 , 000.00 Vice President, Trust Officer of the Bank Undivided P R O F IT S ELLSWORTH MOSER, President of the Bank 1,8 64 , 624.49 and RESERVES Total Capital Accounts $ 5 ,8 6 4 ,6 2 4 .4 9 Cm % UNI T E N ational D v S T AT E S B A N K Nebraska MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION October 16, 1952 Northwestern Banker, November, 1952 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis \ Nebraska Bankers M eet in Linco November Banking and Farming Leaders Scheduled to Appear on Program of 55th Convention EADERS in banking and agricul ture will be the featured speakers L on the program of the Nebraska Bank ers Association 55th annual conven tion in Lincoln November 10th and 11th. Hotel Cornhusker will be head quarters. Allan B. Kline, Chicago, president of the American Farm Bureau Federa tion, starts off the first afternoon’s session with his talk on “Today Is Im portant.” He will be followed by James Louis Robertson, Washington, D. C., member of the board of govern ors of the Federal Reserve System. Mr. Robertson is well known to Ne braska bankers, having appeared on their program several years ago when he was deputy comptroller of the cur rency. He is also a native Nebraskan. A.B.A. President W. Harold Brenton, Des Moines, will discuss “ The Growing Responsibility of Bankers” as the first speaker on the Tuesday morning program. After A.B.A. elec tions and two short reports from Ne braska Bankers, Vernon L. Clark, Washington, D. C., national chairman of the United States Defense Bond Program, will speak on “The Banker A L L A N B. K L I N E President Am erican Farm Bureau https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis and the U. S. Savings Bond Program.” His talk will be followed by commit tee reports and election of officers. The convention will conclude that afternoon with a special panel discus sion on “ The Outlook for the Cattle Industry.” This innovation is expect ed to attract a great deal of attention from Nebraska bankers. On the panel will be four prominent livestock men. Present officers of the Nebraska As sociation are: President, William N. Mitten, president, First National Bank, Fremont; vice president, William F. Wenke, president and cashier, Pender State Bank, Pender; secretary, Carl Swanson, Omaha. A special program for the ladies has been arranged and will be announced in complete detail at the convention. Noon luncheons on Monday and Tues day and the annual social hour, ban quet, floor show and dancing complete the entertainment program. On Tues day morning, Lincoln banks will be hosts at breakfast for delegates and their wives in the Lincoln University Club. The complete program follows: Monday, November 10th A.M. 9:00-12:00 Registration Mezzanine Floor 12:00 Noon Luncheon—Delegates, Ballroom P.M. 12:30 Ladies Luncheon — Entertain ment, Lincoln Hotel 1:30 Convention Session—Ballroom, Cornhusker Hotel Presiding, Wm. N. Mitten Invocation, Rev. John Douglas Clyde, Pastor, the Westminster Presbyterian Church, Lincoln Welcome, The Honorable Victor E. Anderson, Mayor of the City of Lincoln; President, Havelock National Bank, Lincoln Response and President’s Ad dress, Wm. N. Mitten 1:45 “Today Is Important,” Allan B. Kline, Chicago, President Amer ican Farm Bureau Federation 2:30 Address, J. L. Robertson, Wash ington, D. C., Member of the W IL L IA M N. M I T T E N President Nebraska Bankers A ssociation Board of Governors, Federal Reserve System 3:15 Annual Meeting of the Nebras ka Conservation Foundation, Inc., Ballroom 5:30-6:30 Social Hour, Delegates and Ladies, Georgian Room, Corn husker Hotel 6:30 Convention Banquet, Ballroom, Cornhusker Hotel 8:30 Floor Show, Dancing, Ballroom, Cornhusker Hotel Tuesday, November 11th A.M. 7:30-9:00 Convention Breakfast, Dele gates and Ladies. Courtesy of the Lincoln Banks, The Lincoln University Club 9:00 Registration, Cornhusker Hotel, Mezzanine Floor 9:30 Convention Session, Ballroom, Cornhusker Hotel Presiding, Wm. N. Mitten J A M E S L. R O B E R T S O N M em ber, Board of Governors Federal Reserve System Northwestern Banker, November, 1952 64 Nebraska News 10:15 10:30 10:40 10:55 11:10 “The Growing Responsibility of Bankers,” W. Harold Brenton, Des Moines, President, The American Bankers Association Election of A.B.A. Officers for Nebraska Presiding, Fred S. Aldrich, A.B.A. Vice President for Ne braska, Vice President, The Continental National Bank, Lin coln Remarks, Richard E. Adkins, President, N ebrask a Club, School of Banking University of Wisconsin, Cashier, Osmond State Bank Remarks, George T. Hedelund, Chairman, Committee on Group Insurance and Bank Pensions, Vice President, Washington County State Bank, Blair, Ne braska “ The Banker and the U. S. Sav ings Bond Program,” Vernon L. Clark, Washington, D. C., Na tional Chairman, U. S. Defense Bond Program Report of Convention Commit tee on Resolutions Report of Convention Commit tee on Nominations Election of Officers of Nebraska Bankers Association Installation of Officers. P.M. 12:30 Luncheon, Delegates and La dies, Ballroom, Cornhusker Ho tel 1:45 Convention Session, Ballroom Presiding, Wm. N. Mitten Panel Discussion, “The Outlook for the Cattle Industry” Harry B. Coffee, Moderator, President, Union Stockyards Company, Omaha Byron Demorest, Editor, Omaha Daily Journal Stockman Lawrence Brock, Farmer and Cattleman, Wakefield, Nebraska Irwin Adamson, Rancher, Cody, Nebraska Question and Answer Period (Please present questions, oral or written, signed or unsigned) Adjournment------The End. New Ashland Cashier Announcement is made by Edwin A. Fricke, president of the Farmers & Merchants National Bank, that Cloyd N. Turner has been elected cashier of the Ashland, Nebraska, bank. Increase Capital Directors and stockholders of the Bank of Wood River, Nebraska, wish to announce an increase in capital stock from $35,000 to $40,000. New Rushville Cashier G. A. Sheppard, who has been lo cated in Rushville for the past six years as district superintendent of the state highway department, has ac cepted the position of cashier of the Stockmen’s National Bank, Rushville, Nebraska, to fill the vacancy created when Bennett Johnson resigned that post. t I New Bank Examiner Leo Ryan, Kearney, has been ap pointed a bank examiner by the state director of banking, J. F. McLain, it was announced last month. His ter ritory will be western Nebraska. Mr. Ryan has taken up his new duties. Mr. Ryan, who has been in the bank ing business in Nebraska for 38 years, organized the Platte Valley State Bank in Kearney and operated the bank for over eight years, until he resigned six months ago. Bassett Anniversary The Commercial Bank, Bassett, Ne braska, celebrated its 50th year of service recently. Officers today are: Henry Canenburg, president; E. H. Little, cashier; Winnie Davison, assistant cashier, and Ruby Miller, assistant cashier. V P (B&aL Uti&hsA, boJthsL yisdohoAkcL (Bank&AA, (Nov. 10-11, Hotel Cornhusker, LincolnI P As always, CUMMINS is at your service with our outstanding line of banking and business machines V- V POWERFUL— Carefully engineered; perfo rates with greater ease than any other hand perforator. It is easier to drop checks into the Cummins Endorser than to turn them over . . . one complete handling of checks is eliminated. RUGGED CONSTRUCTION— Finest anti-fric tion bearings, corrosion proof selector rings combine to deliver traditional Cummins durability. f Cummins 300 makes canceling easy . . . split second action . . . minimum effort. O R IG IN A T O R S O F PERFO RA TO RS IN BUSINESS AND BANKS ^ SINCE 1837 MS Perforators • Check Signers • Check Endorsers “(Bm L " ^hswUkpm v <5^ : Take advantage of our FREE TRIAL OFFER . . . write me for details / ï. M. I. G reensp an, R epresentative 4775 D ecatu r S tre e t Om aha, N ebraska Northwestern Banker, November, 1952 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis \ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 65 If it p ertains to livestock . . W e can serve you. Northwestern Banker, November, 1952 66 Y o u r H o sts a tN eb ra sk a OSTS to bankers and other guests attending the 55th annual con H vention of the Nebraska Bankers As sociation in Lincoln November 10th and 11th will be the six Lincoln banks and the First Trust Company. Groups of officers from the three largest downtown banks in Lincoln are pictured on this page. The other Lincoln banks are Citizens State Bank, Havelock National Bank and Union Bank. First Trust Company is affili ated with the First National Bank. The officers and staff of these seven institutions will welcome visits from you during the convention and will do everything they can to make your stay in Lincoln a pleasant one. C O N T IN E N T A L N A T I O N A L B A N K — S e a t e d , l e f t t o r i g h t : Fred S. Aldrich, v i c e p r e s i d e n t ; T. B. Strain, c h a i r m a n o f th e b o a r d , a n d C. W heaton B attey, p r e s i d e n t . S t a n d i n g , l e f t t o r i g h t : W alk er S. Battey a n d Edward A . Becker, s e n i o r v i c e p r e s i d e n t s ; How ard H adley, v i c e p r e s i d e n t a n d t r u s t o ffic e r , a n d W illiam Edgecom b, a s s is t a n t c a sh ie r. N A T IO N A L B A N K OF C O M M E R C E — A lbe rt A . Held, e x e c u tiv e v ic e p r e sid e n t; Byron Dunn, p r e s i d e n t , a n d Carl D. Ganz, v i c e p r e s i d e n t F ron t ro w , l e f t to a n d t r u s t offic e r. B a ck row , le ft r ig h t: to r ig h t: Glenn Yaussi, p r e s i d e n t a n d t r u s t o f f ic e r ; H . E. Swedburg, v i c e p r e s i d e n t ; Robert W ekesser, v i c e p r e s i d e n t a n d a u d i t o r ; M yron v ic e W e il a n d W illia m Strateman, v i c e p r e s i d e n ts. F IR S T N A T I O N A L B A N K — S e a t e d , l e f t r i g h t : How ard Freeman, c h a i r m a n e x e c u t i v e c o m m i t t e e ; Burnham Y a te s, p r e s i d e n t , a n d E. U . Guenzel, v i c e p r e s i d e n t . S t a n d i n g , l e f t t o r i g h t : A . C. Glandt, v i c e p r e s i d e n t a n d c a s h i e r ; L yle F. Stoneman, v i c e p r e s i d e n t ; M a x Schneider, a s s i s t a n t c a s h i e r ; G. H . Crane, a s s i s t a n t v i c e p r e s i d e n t , a n d M . H . Pollard, Jr., a s s i s t a n t to c a sh ie r. Northwestern Banker. November, 1952 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Nebraska News New Campbell Officer Chartered by It was announced recently by the board of directors of the Campbell State Bank, Campbell, Nebraska, that Don Hansen has resigned as cashier and director. He has sold his interest in the bank to Don F. Bailey of Frank lin, who has been elected a director and cashier. Mr. Bailey has been as sistant vice president of the Franklin State Bank at Franklin for the past two years. “S I X T Y - T W O Y E A R S OF 67 Congress 7 8 9 0 ? fÿ[[llrp.p.r M mf*f^ P IFI F R IE N D L Y B A N K IN G High Level Service The Inter-State National T>ank lias long been recognized for its high level of service to correspondent banks. To day, people not infrequently refer to us as “ the bank with so many corres pondents”— a great compliment, and we are proud of it. Lexington Remodels The Farmers State Bank in Lexing ton, Nebraska, expects to have work started shortly on an extensive re modeling of their bank building. Morrill Remodels As a result of this long-standing pol icy of careful service to correspondent hanks, we have worked out many mutually satisfactory connections. If we can he of service to your hank, please let us know. Work was begun last month on re modeling and redecorating the First National Bank in Morrill, Nebraska. While the work is being done the bank will conduct business in the Bel linger & Covington offices directly across the street. th e Wauneta Addition In t e r -S t a t e N a t io n a l B a n LIV ESTO C K EX CH A N G E Workmen have started digging the ditches for footings in preparation for construction of a new addition to the Wauneta Falls Bank, Wauneta, Ne braska. BLOG, cjiastdtM S iY // M em ber Fe d e ra l 16TH. AND GEN ESEE k STS || g) D e p o s it In s u r a n c e C o r p o r a t io n j Elect H. L. Brune Sixty-two bankers attended the an nual Northeast Nebraska Regional Clearing House banquet meeting at Hotel Morrison, Wayne, Nebraska, re cently. About 20 towns were repre sented. John Shonsey, vice president of the Live Stock National Bank, Omaha, was guest speaker at the meeting. H. Brune, South Sioux City, was elected president of the group for the coming year. He succeeds E. G. Schellpepper, Pierce. Other officers elected were Paul Zutz, Norfolk, vice president, and Al vin Voorhies, Wayne, secretary-treas urer. In Size In Service In St« Joseph Fred Mock Fred Mock, 63, lifetime resident of Clay county, died at his home in Clay Center, Nebraska, recently. Mr. Mock was vice president of the Commercial State Bank of Clay Cen ter. BANKS BOUGHT 47 Y E A R S OF C O N FID E N TIA L AND D IG N IFIED SOLD S ER V IC E a hr ©lb îù'ltubU' C H A R LES E. W A LTERS C O . 1313 FIRST N A T I O NA L B A NK B U IL DI NG https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis FIRST NATIONAL BANK In S t. J o s e p h , M o. MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION OMA HA, NEBR. N o r t h w e s t e r n B a n k e r , N o v e m b e r , 1952 Advertisement N e b r a s k a 99'R o l l o f H o n o r " H a n k s It is an honor to be listed among the HONOR ROLL BANKS. It indicates that th e bank has SURPLUS and UNDIVIDED PROFITS equal to or greater than its capital 1'lie banks listed on this page are som e o f the outstanding ‘'H onor Roll'"’ Banks in Nebraska. B y careful management and sound banking th ey have achieved this enviable position. These banks will be especially glad to handle any collections, special credit reports or other business in their com m unities which you may entrust to them . C orre spondence is invited. TOW N BANK A lb io n .............................. .......F irst N atio n a l B an k ................... A s h la n d ................................. F a rm ers & M erch an ts N atio n a l Bank A u b u rn ...................................A u bu rn S ta te B a n k ......................................... A u r o r a .................................... F ir st N a tion a l Bank in A u r o r a .............. A v o c a ...................................... F a rm ers S ta te B an k ...................................... A x t e ll.......................................F a rm ers and M erch an ts B a n k ................ B a rtle y ................................... S ta te Bank o f B a r tle y ................. B ee m e r...................................F ir s t N atio n a l B a n k _____________________ B ertra n d ............................... Bank o f B ertra n d ............................. B la ir ......................................... W a sh in g to n County B a n k .......................... B lue H ill.................................C om m ercial B an k ............................................ B roken B o w ..... ...................N eb ra sk a S ta te B a n k ........................... ....... B ru le........................................ Bank o f B ru le..................................................... B ru n in g ................ ................. B runing S ta te B an k ....................................... B ru n sw ick ............................ B runsw ick S ta te B an k .................................. C om m ercial Sta te B a n k ..... ........ C ed ar B lu ffs................... C olerid ge......................... ......C oleridge N a tion a l B a n k ........................... C re te ........................................C ity N a tio n a l B an k ......................................... D e W it t ................................... D e W it t S ta te B a n k .............. ........................... E lk h orn ..................................F a rm ers S ta te B an k ..................................... E w in g ..................................... F a rm ers S ta te B an k ..................................... F a ir b u ry ................................ F airb u ry S ta te B an k .................................... F a irb u ry ................................F irst N a tion a l B a n k .................................. F a lls C ity ........................... F irst N a tio n a l B an k ..................................... F r e m o n t.................................F irst N a tion a l B an k ..................................... F u lle rto n ...............................F ir s t N a tio n a l B an k ..................................... G e rin g .................................... G erin g N ation a l B an k .................................. G ib b o n ................................... E x ch an ge Bank ................................................ G oth en b u rg .............................G oth en bu rg Sta te B an k ............................ G re sh a m ................................ G resh am S ta te B an k .................................... H a y e s C en ter......................F irst N a tio n a l B an k ..................................... H a y S p rin g s....................... F irst N atio n a l B a n k .................................... H o sk in s.............................. ... C om m ercial S ta te B an k .............. ....... ........ H u m b o ld t...... ....................... H om e S ta te B a n k .............................................. Im p e ria l................................. F a rm ers & M erch an ts B a n k ................... K e a r n e y ..................................P latte V a lle y S ta te B a n k .......................... L ew ellen ................................F ir s t N atio n a l B a n k ......... ........................... L in c o ln .................................. N ation a l Bank o f C om m erce.................... L in coln .................... ...............U nion B a n k .......................................................... M a d rid ....................................Security S ta te B an k ............................. ....... M a lm o .....................................Security S ta te B an k ..................................... M a y w o o d ...............................F a rm ers S ta te B an k ........................................ M cC o ok .................................. F irst N a tion a l B an k ...................................... M on roe................................... Bank o f M o n ro e................................................. M o r rill.................................... F irst N a tion a l B an k..................................... N o r fo lk .................................. D e L a y N ation a l B a n k .................................... Om aha ............................D o u g la s C ounty B a n k ................................... O m a h a .....................................F ir st N a tion a l Bank o f O m a h a ............. O m a h a .................................... Live Stock N atio n a l B a n k ............ O m a h a .................................... O m aha N atio n a l B an k ........................ O m a h a .................................... U n ited S ta te s N a tion a l B ank................... O ld ............................................N eb ra sk a S ta te B an k ................ .............. Paw nee C ity ..... ......... ....... C itizen s S ta te B an k ............... ............ ....... P on ca..... ................................ Bank o f D ixon C ou n ty.................................. P r a g u e ..... ..............................B a n k o f P ra g u e ............. ................................. S co tia ................ ............ ......... S ta te B ank o f S co tia ........ ....................... Sp en cer................. ................ Spencer S ta te B a n k .................................... S id n ey.._____ _____________ A m erican N a tio n a l B ank o f Sidney... South Sioux C ity ..............N eb ra sk a S ta te B a n k ...................... ........ S ta n to n ............................ ......F irst N a tio n a l B a n k ................... ................ S tr o m sb u rg .................... .. S trom sb u rg B a n k .......................................... T e k a m a h ............................... F irst N ation a l B a n k .................................. V e r d ig r e ....... ........................ B ank o f V e rd ig r e .......................... ................ W a lla c e ............................... .. C itizens Secu rity B a n k .............................. W a y n e .................................... S tate N a tion a l B ank o f W a y n e ............. Y o r k .........................................Y o rk Sta te B a n k ............................................... Northwest ern Banker, November, 1952 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis O F F IC E R .C . E . K r a u s e ___ ______ C . N . T u r n e r ..................... .V i r g i l .F r a n k E lm e r E . W a r r e n ___ M . F a r r ............... H a l l s t r o m ___ C A P IT A L $ 50.000 50.000 30.000 .R. T . E l y ......................... 10.000 50.000 25.000 25.000 - E . H . S u t h e r l a n d ......... . A . H . W a l e n t i n e . ........ -G e o r g e T . H e d e lu n d . .W i l l i a m K o r t ............... . A . W . L i n e ........................ -M . H . A d a m s ..................... .F r e d H . B r u n i n g ......... .L e o n a r d H a l e s ............ . -R . E . G r o s s e ..................... .J a m e s L . G r a y ............... .E . L. P a r k e r ...... ........ -R . E . B u r k l e y ............... .E . F . S a g e r ..................... .M a u d M. B r i o n ......... -H . R . D r e s s i e r . . ...... . .I v a n C. R i l e y ............... G . P . S c h o l z ..................... .J . M . S o r e n s e n ______ . E . M . B l a c k ..................... . D w i g h t G r i s w o l d _____ J e a n S c h n a s e ............ R . R . A d e n ........................ . A r t h u r W a l f o r d ......... -H . M . C o u n c e ............ . .T h o m a s C . H o r n ......... .E d K o l l a t h ..................... .O t t o K o t o u c , J r ______ .J . E . B u r k e ...... ................. .J . W . D e B o r d ................. .J . L . K a t s ........................... .G l e n n Y a u s s i .................. .C . H . W e a r ........................ .F . H . S c o t t ........................ . A m y H . H o u f e k ............ R . M . R o a c h ..................... .R o l l a n d L a r m o n ......... .F r e d e r i c k H a r r i s ......... .R . T . C o v i n g t o n ........... J . J . D e L a y ..................... . W . W . C l a r k .................... . 0 . H . H o l q u i s t ............... .P a u l H a n s e n ......... ........ . W . B . M i l l a r d , J r ....... . A u s t i n L . V i c k e r y ...... .C . J . M o r t e n s e n ______ J . A . B a r r ...... .............. . .F . R . K i n g s b u r y ............ J e r r y H a v e l ..................... .C . H . S i x e l ........................... .G e o r g e D . S e d l a c e k . . A . J . J o r g e n s o n . ....... .H . L . B r u n e ................... L e o N i x o n ...... ........... . .E. C . N o r d l u n d .............. _H . J . W r a g g e ......... ........ . A d o l p h K o t r o u s . ......... .F . H . W h i t l a k e ............... H e n r y E. L e y .................. J. A . B o y l e ...... ................. $ 140,000 182,531 143.000 170.000 70.000 30.000 80.000 95.000 56.000 220,903 50,000 100,000 . A . B . W o o d ........................ 100,000 120.000 50.000 75.000 25.000 50.000 25.000 25.000 50.000 50.000 30.000 35.000 25.000 75.000 150.000 171.000 38.000 124,500 57.000 51,899 99,014 83.000 46,500 75.000 66.000 192,685 497,546 280.000 375.000 109.000 289.000 57,319 100.000 175.000 50.000 150.000 30.000 75.000 25.000 35.000 50.000 25.000 50.000 24.000 60.000 50.000 800.000 200.000 36.000 80.000 65.000 66.000 110,000 88,000 85.000 57,378 1.478.000 162,987 72.000 45.000 100,000 25.000 25.000 25.000 110,000 200,000 24.000 50.000 100,000 100,000 2.500,000 1,000,000 4.000. 2.000. 000 000 70.000 25.000 35.000 25.000 25.000 25.000 200,000 85.000 150.000 30.000 100.000 32,500 60.000 100,000 100,000 SU R PLU S P R O F IT S 422.000 32.000 179,843 450.000 336.000 4.330.000 3,306,275 6.924.000 3,864,624 127,682 72.000 83.000 30.000 43.000 86.000 200.000 140.000 187,200 117.000 285.000 35,800 85,000 241,127 162.000 Nebraska News 69 S t, J o s e p h N e w s HE short course at the University of Missouri College of Agricul T ture, held during one week in October, was attended by E. L. Crume, vice president, Tootle-Lacy National Bank of St. Joseph; Tom Butler, assistant cashier, American National Bank of St. Joseph, and Harry H. Broadhead, assistant vice president, First St. Jo seph Stock Yards Bank. * * * Milton Tootle, president, TootleLacy National Bank of St. Joseph, and Mrs. Tootle, spent several days the past month at Grand Hotel, Point Clear, Alabama. =t= * Charles Burri, assistant vice presi dent, Tootle-Lacy National Bank, re turned at the end of September from a vacation trip to Minnesota. * * * Milton Tootle Jr., vice president and cashier, Tootle-Lacy National Bank, is an artist and a good one. Four handsome wood carvings were entered by Mr. Tootle in an art show at the Hax Art Center in St. Joseph the third week in October. >t= =1= * First National Bank of St. Joseph has announced the election of Macon Dudley, vice president, as director. Mr. Dudley formerly was president of Southwest National Bank of Wichita and became vice president at First National, St. Joseph on August 1, succeeding John D. McC'askey, who resigned. As director he succeeds the late Frank P. Schwartz, prominent St. Joseph accountant, who died in September. * * * On October 13th, Milton Tootle, president, Tootle-Lacy National Bank, St. Joseph, was elected a trustee of the Chamber of Commerce industrial di vision board of directors. (Turn to page 70, please) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Our Association With Correspondent Banks Is Based On A Policy Of Close Cooperation And Friendly Service. For Outstanding Serv ice In This Important Reserve City, Call On American National. Member Federal Deposit Insurance C orporation JPul AMERICAN NATIONAL BANK S t . ^OAOpk, Northwestern Banker, November, 1952 70 / District office in Topeka. He was an infantry officer in World War II. * * * / Lincoln’s three banks are remain ing open on Thursday evenings. This is shopping night in Lincoln and bank officials felt shoppers would ap preciate the chance to do banking at the same time. * * * E UGENE K. REECE has returned to his duties as assistant cashier at the First National Bank after 16 months of duty in the Army. Mr. Reece was called back as a reservist in June, 1951. He has served as a captain in the purchasing-contracting department of the Kansas Military Byron Dunn, president of the Na tional Bank of Commerce, observed that the nation’s military prepared ness is “swinging far beyond what we realize.” Mr. Dunn returned from a twoweek joint civilian orientation con ference in Washington sponsored by the Defense Department. He said, “ There’s more concern about an attack from Russia than we hear, and the military still is not sat isfied with our defense.” * * * Fred S. Aldrich, vice president of the Continental National Bank, has been appointed vice president of the American Bankers Association for Ne braska. The appointment was announced by W. Harold Brenton, newly-elected Association president. As vice president for Nebraska, Aldrich will have the responsibility of membership activities on behalf of the ABA and will maintain liaison between the national association and individual banks in the state. Mr. Aldrich has served on the ex ecutive council of the NBA and is at present serving a three year term on the executive council of the ABA. A ■* V V V -'f" Nebraska Bankers ST. JOSEPH NEWS The Convention of the Nebraska Bankers Association is in Lincoln on November 10 and 11 this year. St. Joseph Chapter, A.I.B., held its fall dinner early in October at Moila Club. Tom Butler, assistant cashier of American National Bank, is president. The speaker was Maurice Allendoerfer, assistant federal reserve agent of the Kansas City Federal Reserve Bank. * * * You are cordially invited to make the First National Bank of Lincoln your headquarters during the convention. All our facilities are at your disposal — including telephones for your calls and efficient secretaries for your letters. THE FIRST NATIONAL BANK OF LINCOLN LIN CO LN , N E B R A SK A Member Federal Deposit Insurance Corporation (Continued from page 69) George E. Porter, president of First National Bank, and R. R. Calkins, p r e s i d e n t of American National Bank, attended the American Bank ers Association convention. * * * A v > A First National Bank of St. Joseph is getting splendid service out of the big parking lot it opened recently, ad jacent to its building. Old buildings on the site were razed and the lot was paved. T o o t l e-Uacy National Bank has made arrangements with a commercial parking lot close by for customer parking. A N o r t h w e s t e r n B a n k e r , N o v e m b e r , 1952 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis \ Nebraska News You Will See Them til the Nebraska it ankers Convention NUMBER of officers and rep resentatives of larger banks and representatives of affiliated banking industries in Nebraska and other states are looking forward with pleasure to renewing acquaintances with Nebraska bankers at the Ne braska Bankers Association’s 55th an nual convention in Lincoln, Monday and Tuesday, November 10th and 11th. Those who have informed the N orth w estern B anker of their intention to attend the convention are: A pany: Dale R. Ainsworth, vice presi dent; Guy S. Hadsell, assistant vice president, and R. C. Kemper, Jr. Commerce Trust Company: J. C. Williams, president; Pleas V. Miller, 71 Jr., assistant vice president, and Tom C. Cannon, assistant cashier. The Inter-State National Bank: Ar den Bruch, assistant vice president, and George C. Dudley, assistant cash ier. New York Jackson D. Breaks, vice president; John Hejinian, Chase National Bank: Cedar Rapids Corporation: Warren Riggs, Chas. Saunders and J. M. Har ris, sales representatives. LeFebure W o r k in g fo r V o n Chicago American National Bank and Trust Company: Chas. C. Kuning, vice pres ident, and W. B. Whitman, assistant vice president. City National Bank and Trust Com pany: William H. Miller, senior vice Night and president, Alfred H. Lindgren, vice president, and John M. Davis, assist ant vice president. Continental Illinois National Bank and Trust Company: Wilfred E. Res- seguie, vice president, and John Q. Adams, Jr., second vice president. The First National Bank: Verne L. Bartling, assistant vice president; Vic tor C. von Meding, assistant cashier; John C. Hemmerle and Nevin G. Bow ser, representatives. Harris Trust and Savings Bank: Arthur G. Osgood, vice president, and Ralph A. Heinsen, assistant cashier. The Northern Trust Company: John V. Haas, second vice president. Ashwell & Company: Fred W. Trier. W e have a special crew w orkin g fro m 11 p .m . until 6 a.m . to give the fastest p ossible service in clearing checks. T h is enables you to get rapid service fro m us— fu rth erm ore we send out about 4 0 0 direct rem ittance letters each day. William H. Banks Warehouses, Inc.: D. H. Coffman, executive vice presi dent, and Jim Fletcher, district man ager. Des Moilnes Bankers Service Company: Henry NATIONAL BANK o f COMMERCE LINCOLN, NEBRASKA H. Byers, president. Kansas City 50 f e a r s a t 13t h a n d O S t r e e t s City National Bank and Trust Com- H o m e o f C o m p l e t e Banking S e r v i c e O r g a n i z e d A u g . 4, 19 02 Member Federal Deposit Insurance Corporation Scarborough’s Loss Prevention program w ill save your | bank many headaches and many dollars. It is yours § along with the broadest protection at the lowest cost. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis r|sgScarborough & Company....... Insurance Counselors to B a n k s FIR ST N A T IO N A L BANK B U ILD IN G . C H IC A G O 3, IL L IN O IS . STafe 2 -4 3 2 5 N o r t h w e s t e r n B a n k e r , N o v e m b e r , 19 52 72 Nebraska News and Curtis G. Callan, assistant cash iers. 9 J I m ìm c o I m — * H ie G a * t ¿ ÍM e n t a í— W elcome to Nebraska Bankers Association Public Annual Convention Omaha First National Bank: T. L. Davis, November I Oth and Nth C o n t in e n t a l R a t io n a l B ank L IN C O L N Member Federa) Deposit Insurance Corporation SAFE and PROFITABLE LOANS .m a y be materially increased in connection with the financing of Seasonal Inventories when secured by WAREHOUSE RECEIPTS issued by WILLIAM H. BANKS WAREHOUSES, INC. Find out about this superior protection afforded Banks through years of continuous service. Our DAVE COFFM AN and JIM FLETCHER will be attending the NEBRASKA BANKERS A SSO C IATIO N Con vention and will be registered at the Cornhusker Hotel. THEM UP. M A IN LOOK They will be very happy to discuss our service with you. O F F IC E S D IV IS IO N O F F IC E S 209 S. L a S a lle S tr e e t Des M o ines, Io w a — Phone 3-4465 C h ic a g o 4, Illin o is S t. Lo u is, M o.— Phone M ain 5227 S ta te A n g o la , In d ia n a — Phone 193-L P ho nes: 2-0204-0205-0206 National Bank and Trust Co.: Earl M. Gafford, vice president. Lincoln, Nebraska m Chemical Bank and Trust Company: James L. Sharp, Jr., representative. Guaranty Trust Company: Walter H. Potter, second vice president. Hanover Bank: Foster M. Hampton, assistant vice president. Manufacturers Trust Co.: Harold A. Walsh, assistant vice president. S a n A n to n io , T e x a s— B la c k s to n e 5-7317 1892 — 60 years of Uninterrupted Service to Banks — 19S2 chairman; F. W. Thomas, president; J. F. McDermott, J. T. Stewart, III, J. F. Davis, senior vice presidents; O. H. Elliott, J. R. Lauritzen, E. N. Solo mon, C. H. Veber, vice presidents; O. H. Holcjuist, cashier; W. E. Spear, J. S. Bundy, trust officers; R. L. Swan son, L. E. Ericksen, C. K. Voorhees, Ralph Frederickson, Carl Bloom, A. L. Wallin, assistant cashiers; E. T. Tan ner, director of customer relations de partment, and Glenn Coon, representa tive. Live Stock National Bank: H. C. Karpf, president; Wade R. Martin, R. H. Kroeger, Paul Hansen, H. H. Echtermeyer, John M. Shonsey, Albert R. Stelling, Marvin R. Werve and Ches ter G. Pearson, vice presidents; A. S. Chaves, cashier and comptroller; L. V. Pulliam, Victor W. Nielsen, Marshall C. Dillon, Fred D. Bellows, Russell A. Loring, Richard Gash, and Robert D. Iske, assistant cashiers. The Omaha National Bank: W. Dale Clark, chairman of the board; W. B. Millard, Jr., president; Bruce H. Thom as, A. J. Rhodes, J. H. Moore, David F. Davis, Stephen J. Wirtz, vice presi dents; L. C. McVea, cashier, and Clar ence C. Jones, assistant cashier. Stock Yards National Bank: W. A. Sawtell, president; A. J. Hallas, John McCumber, vice presidents; J. P. Krogh, assistant vice president, and C. A. Masilko, cashier. The United States National Bank: Ellsworth Moser, president, and all officers plan to attend. Charles E. Walters Company: Robert L. Goethe, president; Louis R. Boett cher, vice president, and Leo Goethe, vice president. St. Joseph As the official experts of the Nebraska Bankers Asso ciation, we have served Nebraska bankers since 1881 in timelock, safe and vault inspection. WE SELL SAFE DEPOSIT BOXES — VAULT DOORS — SAFES F. E. D A V E N P O R T & CO. O M A H A , NEBRASKA N o r t h w e s t e r n B a n k e r , N o v e m b e r , 1952 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Beverly Pitts, vice president, and Charles K. Richmond, assistant cashier. The First National Bank: J. M. Ford, II, vice president; Vern Meyer, assist ant vice president. American National Bank: First St. Joseph Stock Yards Bank: T. J. McCullough, vice president, and H. H. Broadhead, Jr., assistant vice president. (Turn to page 75, please) 73 M RS. RAY R. RIDGE, widow of the former vice president of the Omaha National Bank who died in 1950, has established a scholarship in his memory at the University of Omaha. Jay Lashinsky of Omaha received the first Ray R. Ridge Memorial Scholarship recently from Dean of Students J. B. MacGregor. The scholar ship provides $150 for each of the two semesters of the recipient’s freshman year. Mr. Lashinsky is majoring in business administration. * * * Banquet speaker at the Independent Student Association’s nine-state confer ence at Omaha was J. Francis McDer mott, vice president of the First Na tional Bank of Omaha and 1951-52 King of Ak-Sar-Ben. The banquet was held at the University of Omaha. Hip topic was “Education—For What?” * =K =f= Among the many attending the Fi nancial Public Relations Association’s meeting at Coronado, California, was Miss Anna T. Olsson, manager of the savings department of the Live Stock National Bank of Omaha. Following the convention Miss Olsson spent a week in Hawaii, traveling via plane. * * * Officers and directors of the Secu rities Acceptance Corporation of Oma ha were guests of the Nebraska Invest ment Bankers’ Association at a dinner at the Omaha Club recently. The purpose of the series of meet ings is to further acquaint investment dealers with the problems of corpora tions whose securities are widely held in this territory. It was the third meeting of the series. * * % Harry Greenway, vice president of Central Republic Company in Omaha, spent his vacation in New York City. Two high spots of his relaxation were the Walcott-Marciano fight, and of course the world series. * * * Omaha business entered the last quarter of 1952 substantially ahead of last year’s pace. Most bankers and business men predicted continued high business activity during the remainder of the year. In bank volume, construc https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis tion, electricity, water and gas use, and livestock trade, the area surpassed the first nine months of 1951. Bank debits totaled $5,844,948,804 for the first nine months of 1952, a gain of 1.5 per cent over the same period of 1951. Bank clearings of $5,830,529,369 were higher by eight-tenths of 1 per cent than the figure for the same period last year. * * * Mr. and Mrs. Henry Karpf have re turned after a recent vacation in Ohio. Mr. Karpf is president of the Live Stock National Bank of Omaha. They visited Mr. Karpf’s sister, Mrs. C. A. Stewart, and Mr. Stewart on a farm at Conneaut, Ohio, which has been in the Karpf family for three generations. Mr. Karpf also visited another sister, Mrs. Nat Brooks, of Ashtabula, Ohio. ♦ * * The Omaha and Council Bluffs Con ference of the National Association of Bank Auditors and Comptrollers held its first meeting of the season recent ly, with 55 present. New officers are John P. Carlsen, OUR SERVICE Rounded by 2 6 Years of Experience in the INVESTMENT BUSINESS Smith, Polian & Co. 424 O m aha National Bank Bldg. O m aha 2, Nebraska JAckson 5065 auditor of the Stock Yards National Bank of Omaha, president; Ray F. Slizewski, vice president and cashier of the South Omaha Savings Bank, vice president; Joseph M. Hart, Jr., cashier of the North Side Bank of Omaha, secretary, and Walter Clark, cashier of the Douglas County Bank of Omaha, treasurer. * =t= * Directors of the United States Na tional Bank have announced an in crease of $1,000,000 in the bank’s cap ital and surplus, applying $500,000 to common capital and $500,000 to sur plus. Common capital now is $2,000,000, surplus $2,000,000, undivided profits and reserves $1,864,624.49—total cap ital accounts $5,864,624.49. Ellsworth Moser, president of the bank, said the increase in capital and surplus represents a sale of $500,000 capital stock and a transfer of $500,000 from undivided profits. * * * Vice President J. Francis McDer mott of the First National Bank of Omaha made three speeches in 90 min utes in behalf of the Omaha Commu nity Chest drive on a recent day. * * * The Omaha area is racing toward its Bigger Industrial Growth goal of one million dollars. Before the drive for funds actually got under way, the non-profit Commit tee of ’52 Foundation, Inc., had $402,000 in its treasury. The amount came from 17 firms, which announced their pledges at a kickoff meeting. (Turn to page 74, please) INVESTMENT SECU R IT IES 1. G o v e rn m e n t bonds. 2. M u n icip a l and c o r p o r a t e 3. L is te d and lo c a l bonds sto c k s 4. M utual In v e stm e n t Funds ▼ Unde rwriters — Distributors Dealers v THE NATIONAL COMPANY OF OMAHA 500 F ir s t N a tio n a l Bank Bldg. M em bers M id w e st S to c k Ex ch a n g e Northwestern Banker, November, 1952 74 Nebraska News T ea ch ers S tu d y tta a h in y “The Bank’s Relationship to the Com munity” and “Explanation of a Bank Statement.” After a luncheon, the teachers heard a series of talks on bank operation, ranging from check ing accounts through Trust Depart ment functions. The teachers were most interested and enthusiastic during the entire day of activities, and later President Ells worth Moser received many compli mentary letters from members of the group, expressing their appreciation for a most informative and enjoyable day. OMAHA NEWS B A N K V IS IT O R S —Here are the Omaha school teachers States N ational Bank after spending some hours there as they left the U nited learning about various phases of bank operation. Their visit was a part of Business-Industry-Education Day, a project recently launched in Omaha. u s i n e s s - in d u s t r y - e d u c a t i o n Day was a new experience B for Omaha; but because of its success in some 300 other cities in the United States, there was no reason to doubt its acceptance. The co-operation of public and parochial school systems made it possible to use one of the days in the pre-school week when all 1,250 teachers were available. The school authorities were also respon sible for assigning each teacher to his or her choice of firm and apportion ing them between the 77 firms in the numbers requested by the companies. It was a work day and every teacher spent the entire day at some place of business. On the appointed day, the teachers assembled at Central High School, were met by representatives of their hosts and driven by bus to the firms. From then on, they were toured, talked to, or otherwise indoctrinated according to the programs set up by each company. Forty teachers chose the United States National Bank to visit, and their day spent there was indeed a full one. Following a preview of the day’s program, and a tour through the bank, the guests heard talks on n r T h e th r e e R’ s o f b a n k i n g .,? R e lia b le R e p u ta b le R e sp o n sib le . . . assure your Chicago accounts of service that is prompt, efficient, and complete. Let our facilities, reputation and knowledge of Chicagoland commercial requirements work for you. facilities for correspondents L. City N atio n al B ank AND TRUST COM PANY o f C h ica g o p 2 0 8 S O U T H LA S A L L E S T R E E T (Member Federal Deposit Insurance Corp.) Northwestern Banker, November, 1952 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis (Continued from page 73) Ellsworth Moser, president of the United States National Bank of Omaha, is chairman of the fund-raising cam paign. Dale Clark, chairman of the board of the Omaha National Bank, is chairman of the sites committee. * * * Misses Arlene Block, La Vonne Peterson and Glenda Ludwig, em ployes of the First State Bank, Gothen burg, Nebraska, spent several days at the Live Stock National Bank, observ ing city bank operations. * * * The Omaha National Bank’s George Washington Club has a new member. Vice President A. J. Rhodes of the bank cited Johnny Scogin, 5, for his honesty in returning to a service sta tion manager a money sack containing $190 in cash and checks which the man had lost. The filling station man bought Johnny a midget billiard table as a reward. * * * Life in Copenhagen, Denmark, just can’t compare with South Omaha for excitement as far as two 21-year-old girls from the land of milk and cheese are concerned. The two Copenhagen bank employes arrived recently to stay in Omaha for a year. They are working in the Live Stock National Bank and expect to see service in most departments before they go back home. The girls, Mitte Petersen and Grethe Gabrielsen, like their life in Omaha. The girls worked in the Haandvaerkerbanken in Copenhagen four years before deciding that they wanted to see more of the world. Mitte arranged the Omaha jobs about a year ago through Omaha relatives. Their trip was sponsored by the AmericanScandinavian Foundation. * * * Richard H. Mallory, vice president of the United States National Bank of Omaha, spoke on “The Personal Prac tice of Freedom” before Omaha Lions Club members at the Fontenelle Hotel recently. Nebraska News Omaha banks have gone back to their usual winter hours. Regular banking hours on week-days are from 9:30 a.m. to 2 p.m. On Saturdays, the winter schedule is 9:30 a.m. to 12 noon. Saturday morning hours at the Doug las County Bank in suburban Benson begin at 9 o’clock. The Douglas Coun ty Bank and the North Side Bank also have discontinued their Friday eve ning banking hours.—The End. y o u W ILL SEE THEM AT THE CONVENTION ence. He assumed his duties on Oc tober 20th. New Bank Check America’s “ Shrine of Democracy,” the Mt. Rushmore National Memorial, is pictured in superb detail on the new check of the Rushmore State Bank at Rapid City, South Dakota. The monument, consisting of the giant-size heads of Washington, Jeffer son, Lincoln, and Theodore Roosevelt sculptured out of the solid granite of 75 the Mt. Harney mountain range, is re produced in an over-all design on the check by John Wenrich, artist for the Todd Company, Rochester, New York, check manufacturers. Mr. Wenrich, whose artistry has ap peared on many bank checks produced by Todd, executed the original of the Mt. Rushmore drawing three times the size of the finished check. The draw ing was shown by him when he was a guest in recent television appearances in New York City. (Continued from page 72) St. Louis First National Bank: Frank Fuchs, MUNICIPAL BONDS vice president. Mercantile Trust Company: M. Carl Hook, Jr., assistant vice president, CORPORATION BONDS and STOCKS St. Paul St. Paul Fire and Marine Insurance Company: L. R. Moeller, assistant sec retary; D. W. Lyle, manager; D. N. Shaw, E. A. Reed and R. T. Earley, state agents. St. Paul Terminal Warehouse Com pany: R. C. Schall, vice president, JOHN DOUGLAS & COMPANY, INC. Omaha, Nebraska 530 Insurance Building Phone: Webster 2281 Field Warehouse Division, and Wal lace H. Otto, representative. Sioux City J. T. Grant, president; W. L. Temple, assistant vice president, and Edward V. Hoffman, assistant cashier. Live Stock National Bank: Carl L. Fredericksen, president; Stanley W. Evans, assistant vice president, and Richard Draper. Security National Bank: B. M. Wheelock, vice president and Charles H. Walcott, assistant vice president. Toy National Bank: E. E. Erickson, vice president, and Conrad Aronson, assistant cashier. First National Bank: ÛvûJxL ¿XOLáA. (pAofíÍA, J W C JfalW J W C ¿ x s m p L ÿjvcojWL Jabone yifaniapaL ßondäu Wb SbII Them! Robert E. Schweser C o. 1953 Convention The 1953 Convention of the Amer ican Bankers Association will be held in Washington, D. C., it was an nounced by W. Harold Brenton, presi dent of the A.B.A. The dates of the Convention will be September 20-23, 1953. The last Convention of the American Bankers Association to be held in Washington was in 1934. The District of Columbia Bankers Association will be the hosts for the 1953 meeting. Then, consolidate your buying of bank supplies and pnntmg lroro your friendly USCB salesman. 1311 H O W A R D ST. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis : OM AHA INVESTMENT SERVICE FOR BANKS Named Vice President Robert K. Morrow, who began his banking career in 1931 as a messenger boy at the Winters National Bank, Dayton, Ohio, has been elected vice president of the National Bank of Commerce, Houston, Texas. This an nouncement was made by Robert P. Doherty, president. Mr. Morrow will be in charge of personnel. This is a field in which he has had long experi O m aha, Nebraska 208 South Nineteenth Street Specializing in Nebraska Municipal Bonds KIRKPATRICK-PETTIS COMPANY 54Q O m a h a N a tio n a l Bank Bldg. O M A H A , N EBRA SK A L IN C O L N O F F I C E — 618 F ir s t N a tio n a l Bank Bldg. N o r t h w e s t e r n B a n k e r , N o v e m b e r , 1952 76 fo r th e p le a s a n t r e la tio n s h ip s w e h a v e e n j o y e d w it h o u r m a n y corresp on d en t banks g r e a t p la in s a re a . have th e in th e W e hope o p p o r tu n ity to to serve y o u w ith o u r m a n y c o r r e s p o n d e n t s e r v i c e s in t h e n e a r f u t u r e . L IV E STO CK https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N A T IO N A L O M A H A , B A N K N E B R A S K A MEMBER OE FEDERAL RESERVE AND FEDERAL DEPOSIT INSURANCE CORPORATION 77 N E W O F F IC E R S of the Iowa Bankers Association are shown in photo at left above. At left is Charles J. Spies, president, Iowa Trust and Savings Bank, Emmetsburg, new vice president and treasurer. In center is H arry S. Lekw a, vice president, Ackley State Bank, Ackley, being congratulated by retiring President R oy A . Sweet, president, Story County State Bank, Story City. CENTER— W ill Rogers, Jr., Beverly Hills, California, pub lisher and son of the renowned late Will Rogers, hangs a solid gold medallion around the neck of W . Harold Brenton as a climax to the surprise “ official” inauguration of Mr. Brenton as president of the American Bankers Association. Mr. Brenton was elected A.B.A. president in Atlantic City early last month. RIGHT— Independent Bankers Association officials meet an independent thinker. Guy Sturgeon (left), president, Bank of Commerce in Sheridan, Wyoming, and immediate past president of the IBA, and Ben DuBois (right), Sauk Centre, Minnesota, secretary of the IBA, visit with Newbold Morris, New York attorney who was appointed early last spring to investigate corruption in federal government, then was tired because he went ahead and did it. H a r r y L ek ira NamMoira MMankers A ssocia tion P resid en t Charles J. Spies Elected Vice President; New Registration Record of 2,721 By BEN HALLER, JR. Managing Editor The Northwestern Banker superlatives, as usual are not adequate to describe C OMMON this year’s Iowa Bankers Asso ciation annual convention. Suffice it to say that the three-day, star-packed 66th annual meeting drew 2,721 per sons to the Hotel Fort Des Moines in Des Moines to hear some of the most distinguished authorities in the nation on banking, business and government topics. The attendance figure of 2,721 is a new record and tops last year’s previous record high of 2 ,667 regis trants. Harry S. Lekwa of Ackley was elected president of the Iowa Associ- T H E I O W A C L U B of the School of Banking at University of Wisconsin elected new officers at its luncheon meeting. In pic ture at left, from left to right, are: Carroll W . Grimes, execu tive vice president, First National, West Union, vice president; Charles R. H annan, cashier, City National, Council Bluffs, retir ing president, and Dale C. Smith, assistant cashier, Central Na tional, Des Moines, president. Back row— Conrad E . Aronson, assistant cashier, Toy National, Sioux City, director; James H . Pullman, Jr., cashier, Fremont County Savings, Sidney, director, and James W . Lipton, Jr., vice president, Arthur Trust & Sav https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ation for 1952-53. He succeeds Roy A. Sweet, president, Story County State Bank, Story City. Mr. Lekwa is vice president of the Ackley State Bank, president of the Citizens State Bank of Iowa Falls, and vice presi dent of the State Savings Bank at Aplington. ings, Arthur, secretary-treasurer. I O W A J U N IO R B /N K E R S also had a luncheon meeting. In photo at right, seated left to right, are: Gordon L. Mennen, LeMars Savings, LeMars, president; R. V . Grobinski, assistant cashier, Farmers Savings, Grundy Center; Leslie A . Jacobsen, assistant cashier, Rock Rapids State, Rock Rapids, and Kenneth H . D ietz, assistant cashier, Walcott Trust and Savings. Stand ing— T. F. Jacobson (left), vice president, Story County State, Story City, and C. W . Fishbaugh, assistant cashier, Security Trust and Savings, Shenandoah. Northwestern Banker, November, 1952 78 Iowa News I O W A C O N V E N T IO N — In photo at left are, left to right: L. N evin Lee, vice president, Bankers Trust, Des Moines; John B. K eeline, president, Central Trust and Saving's, Cherokee; M rs. K eeline, and Frank A . Johnson, vice president, First Trust BIGHT— Rae V . Burchfield, vice president, and Jay W . Hem p cashier, both of Farmers State, Yale; Floyd F. W hitm ore, president, Okey-Vernon National, Corning, and E verett M . Griffith, vice president, lowa-Des Moines National, Des Moines. hill, and Savings, Davenport. Charles J. Spies, president of the Iowa Trust and Savings Bank, Emmetsburg, was elected vice president and treasurer. He succeeds J. E. Howe, president, Adair County Bank, Greenfield. F r a n k Warner, Des Moines, continues as secretary. Lee A. Holland, the other candi date for the presidency, withdrew during the convention, but his name was placed before the convention as a candidate for the presidency at the 1953 convention by H. Lee Huston, executive vice president, Columbus Junction. Mr. Huston, whose Group II had backed Mr. Holland’s bid for the presidency, seconded the nomina tion of Mr. Lekwa, and at that time revealed that his Group was sponsor ing the candidacy again next year of A t the Mr. Holland. The meeting of Iowa members of the A.B.A. was presided over by Cecil K. Cullings, A.B.A. vice president for Iowa, and president, Exchange State Bank, Exira. J. F. Kennedy, presi dent, First National Bank, New Hampton, was elected executive coun cilman for a three-year term to suc ceed W. W. Blasier, former president, Farmers State Bank, Jesup. Grover S. Krouth, president, Iowa Trust and Savings Bank, Oskaloosa, was elected nominating committeeman to succeed Arthur T. Donhowe, vice president, Central National Bank and Trust Company, Des Moines. Vincent P. Cullen, executive vice president, Na tional Bank of Burlington, was named alternate to Mr. Krouth, and he suc Iow a V I S I T I N G headquarters rooms of city correspondent banks is one of the informal highlights of any bankers convention, and this year’s Iowa Bankers convention was no exception. The N orthwestern B anker went on a “ room-hopping” camera tour, and the pictures on these pages are the results. Pictured on the opposite page, reading from left to right in each photo, are: 1. At the annual luncheon sponsored by John M orrell & Com pany and Union Bank and Trust Company of Ottumwa— C. B. M cClelland, assistant manager, Morrell’s; M a x von Schrader, president, Union Bank and Trust; George A . M orrell, vice presi dent and treasurer, Morrell’s, and Clarence P. Glenn and Jay C. Blackford, vice presidents, Union Bank and Trust. 2. A hallway gathering— Stanley W . Evans, assistant vice president, Live Stock National, Sioux City; John Hemmerle, First National, Chicago; James Fletcher, district manager, Wm. H. Banks Warehouses, Des Moines; M rs. Eugene Timlin, Lawler; Robert C. Power, cashier, Security State Savings, Creston; M rs. Paul Ohrt, Mallard, and Dave Coffman, vice president, Wm. II. Banks Warehouses, Chicago. 3. Drovers National of Chicago room— George A . Strickland, assistant cashier, Drovers; Don L. Harper, assistant vice presi dent, First Wisconsin National, Milwaukee; George A . M alcolm , president, Drovers; R udy R. Schroeder, executive vice presi dent, Iowa County Savings, Marengo; Frank M . Covert, vice president, Drovers, and Fred D. Cummings, assistant vice presi dent, Drovers. 4. Central National of Des Moines room—(Seated) K . F. Leuthauser, cashier, Adair County Bank, Greenfield; Roy. F. Glab, vice president and cashier, American Trust and Savings, ceeds Frank C. Welch, president of the Peoples Bank and Trust Com pany, Cedar Rapids. The second annual luncheon of the Iowa Club of the School of Banking had 51 members and guests present. New officers are; President—Dale C. Smith, assistant cashier, Central Na tional Bank and Trust Company, Des Moines; vice president—Carroll W. Grimes, executive vice president, First National Bank, West Union; secretary-treasurer—James W. Lipton, Jr., vice president and cashier, Arthur Trust and Savings Bank, Ar thur. Directors are: Conrad E. Aronson, assistant cashier, Toy National Bank, Sioux City; James H. Pullman, Jr., cashier, Fremont County Savings ISnnhers > Dubuque, and Bert Allerton, prestidigitator deluxe, Chicago. (Standing) R. E. Anderson and Eldon A . Erbes, assistant cash iers, and T. N . How e, vice president, all of Adair County Bank, Greenfield, and Arthur T. Donhowe, vice president, Central Na tional Bank and Trust, Des Moines. 5. Live Stock National of Omaha room— L. O. Stoker, president, Farmers Savings, Shelby; Dean Marquardt, representative, Live Stock of Omaha; W illia m E . Sinclair, cashier, State Sav ings, Council Bluffs; A . A . Kruse, vice president, First State, Audubon; E. T. Richmond, vice president, State Savings, Coun cil Bluffs; J. H . Redman, executive vice president and cashier, First National, Glidden; Herb Echtermeyer, vice president, Live Stock of Omaha, and W . B. M cLuen, Anita State, Anita. 6. Live Stock National of Chicago room— Darrell J. Lindbom, assistant cashier, Live Stock National, Chicago; H . O. Quame, vice president, State Savings, Rake; C. W . Fowler, president, Poweshiek County Savings, Brooklyn; Johnnie Rake, cashier, State Savings, Rake; Paui T. Betz, vice president, and James L. Johnson, assistant vice president, both of Live Stock of Chicago. 7. First National of Chicago room— Ted J. W elch, vice presi dent, Peoples Bank and Trust, Cedar Rapids; Verne L . Bartling, assistant vice president; John J. Anton, vice president, and V ictor C. von M eding, assistant cashier, the latter three of First National of Chicago. 8. A lobby get-together— Joe M enges, cashier, Alta Vista State, Alta Vista; George P. L ea f, and Leonard P. Moeller, assistant secretary, both of St. Paul-Mercury Indemnity Company, St. Paul. y v h 1 y N o rth w e ste rn B a n k e r , N o v e m b e r , 7952 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis \ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 80 Iowa News / I O W A C O N V E N T IO N —The Tuesday morning breakfast of the American National of Chicago is a yearly tradition enjoyed by many Iowa convention-goers. The hosts are shown in photo at left above, finally taking time out to eat with some of their guests. From left to right are: W illiam B. W hitm an, assistant vice president, American National; R. B. Mulder, president, First Federal State, Des Moines; O. Paul Decker, chairman of the investment committee, American National; M rs. E. H. Parker, whose husband is vice president, Farmers State, Jesup; W a lter Bank, Sidney; T. L. Vinyard, vice president, First Trust and Savings Bank, Davenport, and Robert M. Mc Queen, assistant cashier, Farmers State Bank, Ridgeway. These four men, the new officers and retiring president Charles R. Hannan, cashier, City National Bank, Council Bluffs, comprise the board of directors. (standing at left), assistant cashier, American Na tional, and Charles C. Kuning (with coffee pot), vice president, American National. RIGHT— Seated, from left to right: E. C. Hansen, president, Renwick Savings, Renwick; A . J. Scott, cashier, First State, Sioux Rapids, and H enry Visser, executive vice president, First National, Hawarden. Standing-— E . C. Peck (left), Omaha, and B. J. M cCartney, Sioux Falls, both with United States Check Book Company. Arm strong Jf Because of the tremendous crowds being drawn to the convention each year, it was decided to discontinue a banquet in any form this year, be cause of lack of facilities. The Hotel Fort Des Moines ballroom, when opened to full capacity cannot ac commodate all those wishing to at tend the banquet, and the facilities • BABYSITTERS will care fo. your children while you swim, visit a nightclub or take in a show. • NURSERIES for the smaller children— competently manned by trained personnel. • P L A Y G R O U N D S fullyequipped, convenient to all 650 villas . . . many special events for kiddies. • BABY BEDS, strollers, high chairs, almost any conveyance and convenience you can think of . . . better vacations for you and the little ones. Unbelievable - but true . . . Many brick villas with bed room, living room, electric kitchen, tile bath, complete ly furnished. On ocean. Stores. Playgrounds. Free folder -write today. of KRNT Theater’s mammoth meet ing and banquet hall have been taken over by the Armed Forces as an ex amining and induction center. This leaves only the possibility of the pro posed Veterans Memorial Auditorium as a solution to the banquet problem. This building is in its preparatory stages but as yet is not under con struction. It is reported to be big enough to seat several thousand per sons comfortably at banquets when completed. The convention entertainment fea tured such performers as Elsa Lanchester and her “Private Music Hall” ; a rough and tumble feature wrestling match, which was preceded by three strictly-f r o m-hunger matches that weren’t even good clowning; Hedda Hopper, and the Robert Shaw Cho rale. An amusing and sentimental side light to the convention was the sur prise program the second morning of the convention, which was arranged in secrecy in advance as an “official” inauguration of Iowa’s W. Harold Brenton as president of the Ameri can Bankers Association. Mr. Bren ton was elected A.B.A. head at the national convention in Atlantic City October 1. The Iowa convention marked his first official appearance. A special printed program com memorating the surprise inaugura tion was distributed after several of > y V V y S' POINT-OF-USE THE W O RLD S LAR G EST FA M ILY RESORT FLORIDA DAYTONA BEACH, TIRE PROTECTION FOR AL L YO C M d im e á L COUNCIL B L U F F S . E x c l u s iv e R RECO R D S PRINTERS-STATIONERS I OWA S h a w -W a l k e r Dealer PHONE 5521 .W . Io w a in s > N o rth w e ste rn B a n k e r , N o v e m b e r , 1952 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis \ 81 W a r m e s t G o o d ... W i s h e s ... f o r Y o u r T hH The officers, directors and every member of Bankers Trust Company sincerely wish you and yours a day of peace and happiness observed in the true spirit of Thanksgiving. D es M o in e s, Iow a https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M em ber: Federal Deposit Insurance Corporation Federal Reserve System 1917 • Our 5ht Year 3 • 1952 Northwestern Banker, November, 1952 o l i d 82 Iowa News f I O W A C O N V E N T IO N — In photo at left, from left to right: R. P. Blake, president, Farmers Savings, Mitehellville; W . A . Herbrechtsmeyer, vice president, First Security Bank and Trust, Charles City; A lfred H . Lindgren, vice president, City National, Chicago; John M . D avis (standing), assistant vice president, City National, Chicago; Lee Chandler, president, Iowa Savings, Dike, and I. T. Parkhurst, vice president, Farmers Savings, Grundy Center. Mr. Brenton’s old friends made their appearance on the stage. His third grade school teacher, one of his old schoolmates, and his first employer (when Harold Brenton was 11) spoke for a few minutes each, recounting experiences they remembered from “ Pug” Brenton’s boyhood. All were from Guthrie Center, and the Guth rie Center high school band appeared on the scene to serenade him to the tune of “Hail to the Chief.” The ceremony was climaxed with the presentation to Mr. Brenton of a solid gold medallion from the Iowa EIGHT— Group in Marquette National of Minneapolis room. Seated (left) is Otto H„ Preus, vice president, Marquette Na tional, with H arry H abata, accordionist, who plays for all Mar quette functions. Directly behind and between these two is Stew art L. Stotesbery, assistant cashier, Union Savings, Grand Mound. To his left is John Cleary, special representative, Mar quette National. > Bankers Association. Will Rogers, Jr., made the presentation. The featured speakers on the pro gram were outstanding and drew considerable attention and applause for their forthright presentations. A brief report from some of the speak ers follow: I). Z. Albright, vice president, Se curity-First National Bank, Los An geles: “Now just what are the fun damentals of good public relations for consumer credit personnel? In my experience here are what I believe to be the primary fundamentals for At Times Square. Walking distance to everything worthwhile. 1400 Rooms, each with private bath, shower. $Æ From I Special rates for servicemen good public relations between con sumer credit personnel and the bank’s customers. I call them five “ Be’s’: 1. 2. 3. 4. 5. Be Be Be Be Be friendly. courteous. interested. confidential. appreciative. “These fundamentals need to be practiced by our consumer credit people, not only in their initial con tacts with customers but in all phases of the operation—handling the loan interview, handling the loan declination, credit investigation and collections.” Newbold Morris, New York lawyer, appointed special assistant to the at torney general last spring to investi gate corruption in government and fired six weeks later before he could put his plan into operation: There should be a federal agency to in vestigate any suspected corruption in government. “This agency should (Turn to page 91, please) À * I r > LOST D u rin g the recent Iow a Bankers convention, a ladies fu r cape w as in a d verten tly exchanged fo r another fu r cape. A check o f the tailorin g ta g s w ill show th a t this w as done th rou gh m istaken identity o f the g a rm en t. W ill the person who picked up the w ro n g cape kindly contact the N orth w estern Banker so th a t it can be returned to the proper owner. The fu r cape le ft in its place is being held fo r return and w ill be forw ard ed as soon as you contact our office. h Y o u r rep ly and the exch an ge will be held in strict confidence. Call or w rite: BJH N orth w estern B ank er 527 Seventh S treet D es M oines 9, Iow a X N o r t h w e s t e r n B a n k e r , N o v e m b e r , 1952 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis \ S3 \ y- t The On J u ly 1, 1861 t h e first r a ilr o a d j o u r n e y in c o m p le t e d w h e n th e th e N o r th w e s t w as W illia m Crooks, h a u l i n g t w o c o a c h e s , s t e a m e d i n t o S t . A n t h o n y , n o w a p a r t o f M i n n e a p o l i s . T h e t e n m ile j o u r n e y f r o m S t . P a u l h a d ta k e n a li t t le m o r e t h a n h a l f a n h o u r . "Iron Horse” R a i l r o a d e x p a n s i o n in t h e N o r t h w e s t p r o c e e d e d r a p i d l y . W i t h i n t h r e e d e c a d e s t h e r a ils h a d r e a c h e d t h e P a c ific a n d b r a n c h l i n e s w e r e k n i t t i n g th e v a s t h in te r la n d to th e m a r k e ts o f th e e a st. brings T h i s r a ilr o a d g r o w t h w a s p a r a l l e l e d b y t h e e s t a b l i s h m e n t o f h u n d r e d s o f I n d e p e n d e n t B a n k s in t h e n e w c o m m u n i t i e s . T o i n d i v i d u a l s a n d b u s i n e s s f ir m s t h e y p r o v i d e d s e c u r i t y , f in a n c ia l c o u n s e l , w i t h o u t w h i c h t h e s e t t l i n g the Northwest o f th e se sta te s w o u ld h a v e b e e n lo n g d e la y e d . T o d a y , as a lw a y s , th e I n d e p e n d e n t B a n k e r w o r k s fo r th e g o o d o f h is c o m m u n i t y . T h e M a r q u e t t e N a t i o n a l B a n k is p r o u d t o b e a s s o c i a t e d w it h together 4 h i m , a n d w h o l e h e a r t e d l y s u p p o r t s h is o b j e c t i v e s in p e r p e t u a t i n g th e A m e r i c a n w a y o f life a n d , w it h i t , t h e i n d e p e n d e n t d u a l b a n k i n g s y s t e m . DEPARTMENT OF BANKS AND BANKERS Russell l. Stotesbery P resid en t Otto H. Preus Carl R. Pohlod V ic e P resid en t Vice P resid en t S T R O NG FRI END OF THE I NDEPENDENT BANKER MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION A https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, N ovembe r , 1952 84 Iowa News Itiuili at WaterlooMlemoilels ing will begin about February 1st. The bank expects to move to the new location by November 1, 1953. Among Most Attractive The N ew N ational Bank o f W aterloo will look like this when entering the front entrance and looking toward the back of the bank. This is the architect’s drawing of the interior of the new bank. The wood portions of the teller’s cages will be of walnut while the ledges will be of marble. The railing along the sides at the front will be of aluminum. The plans for the remodeling of the building were drawn up by the Bank Building and Equipment Corp. o f Am erica, which has offices in St. Louis. The move, which was necessitated by overcrowding in the bank’s present location, is expected to give Waterloo one of the most modern and beautiful physical properties for banking pur poses in the state. One of the best features of the new building, Mr. Penne said, is that it will enable the bank to provide complete banking service on one floor. The new location will also provide a convenient adjacent customer park ing lot and two drive-in windows where customers may make deposits directly from their cars. Mr. Penne said the new bank will have a large lobby, with tellers’ win dows on both sides. The safety de posit vault will be in the rear of the building. Fatal ABA Trip Mrs. Frank Hamilton, wife of the cashier of the Montgomery County National Bank, Red Oak, Iowa, was killed in a car accident last month near Upper Sandusky, Ohio, when she and her husband were returning from the American Bankers Convention. New Whiting Bank T H E A B O V E E X T E R IO R V I E W o f the planned new building for the National Bank o f W aterloo shows how the structure on Park Avenue now housing Black’s Super Market will appear after remodeling work is completed next year. The light stone on the building will be Indiana limestone. The darker stone around the entrance at the front will be granite. ONTRACTS for the remodeling of the building now housing Black’s C Super Market on East Park Avenue, in preparation for occupancy by the National Bank of Waterloo, Iowa, have been let, according to R. L. Penne, president of the bank. The remodeling of the building itself will be done by the John G. Miller Construction Company, while the in stallation of the fixtures and furnish ings and work on the interior will be done by the Bank Building and Equip ment Corporation of America, in St. Louis. Mr. Penne said work on the build A new bank, the Community Sav ings Bank, opened for business in Whiting, Iowa, last month. H. C. Bierwirth, Alcester, South Da kota, is president and cashier of the new enterprise. E. C. Trieber, also of Alcester, and Gus A. Olson are vice presidents. In times past there have been two banks in Whiting, the First National Bank and the Whiting State Bank, but they closed in 1926 and 1931. A branch of the Onawa State Bank operates there now. The new Community Sav ings Bank has leased and will occupy the present quarters of the branch. Associated with the three officers as directors are Ralph Matthews, Whiting Holmes, Glen Thomas and Norman Whiting. Mr. Trieber is president of the Al cester Commercial Club. He will con tinue to operate his business and farm at Alcester. A Cordial Welcome Always Awaits You at TH E T O Y N A T IO N A L SIOUX CITY, IOWA M em ber Federal Deposit Insurance Corporation Northwestern Banker, November, 1952 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis BANK ALWAYS READY TO SERVE YOU IN DES MOINES V A L L E Y BANK AND T R U S T COM PAN Y DES M OINES MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N or th we s te rn Banker, N ov em ber , 1952 86 Iowa News erated a stage coach from Onawa to Sioux City. Mr. Morrison attended the Onawa schools, and began work at the Citi zens State hank of Onawa when he was in high school. Later, he was in charge of the savings department of the Iowa State g . m i d l e r , who started as a messenger with Capital City State Bank in 1916, has been named sixth president of the bank. Mr. Miller succeeds Rolfe O. Wagner, who becomes chairman of the board. Mr. Wagner has been with Capital City since 1919 and has been president since 1921. Capital City State Bank was char- R aym ond Institute of Banking, and past presi dent of the Des Moines chapter. =t= =1= * Announcement of the election of Harold R. Arthur to the official staff of the State Bank of Des Moines was made recently by Bindley Finch, ex ecutive vice president. “Mr. Arthur is assuming the duties of real estate mortgage loan officer. He will be actively interested in as sisting our customers with their real estate loan problems,” Finch stated. For the past year, Arthur has been affiliated with Brenton Companies, as special representative. Formerly, for twelve years, he was with the Amer ican Trust Company, San Francisco. California, serving as assistant man ager of their branches located at Broadway-Burlingame and Santa Clara, Cali fornia. * R A Y M O N D G. M I L L E R Heads Capital C ity Bank tered as a state bank August 6, 1878, and wiil celebrate its 75th anniversary in 1953. A native of Des Moines, Mr. Miller attended grammar school here and graduated from West High school. He has served progressively at Capital City State Bank, as a messenger, clerk, teller, assistant cashier, cashier, and vice president. He was named execu tive vice president in 1946. Mr. Miller is a graduate of American * * The first of a series of monthly seminar meetings for members of the Des Moines chapter of the American Institute of Banking was held last month at the Central National Bank & Trust Company, Fifth and Locust streets. Speaker was Russ Van Dyke, news director of station KRNT. The insti tute is an organization of bank em ployes and junior executives. * * * Frederick M. Morrison, 51, presi dent of the Valley Bank and Trust Company, Des Moines, died at his home on October 23. Cause of death was believed to be cancer of the lung. Mr. Morrison came to Des Moines in 1937 as vice president of Valley Bank, and became president early in 1938. He was born at Onawa Decem ber 3, 1901. His grandfather. Herbert Morrison, was a banker there and op S C A R B O R O U G H Associates G roup Insurance Plan has been selected by banks because it provides the most complete benefits at lowest cost. It is a loyalty builder. y F R E D E R I C K M . M O R R IS O N 1 9 0 1 -1 9 5 2 E Savings bank of Sioux City, and after that served with banks at Onawa and Lake City. He then spent 12 years with the state banking department as special examiner in charge of banks in re ceivership, living at Washington, West Liberty, Muscatine and Wapello during that period. Mr. Morrison was president of the Valley Investment Co. and ValleyDes Moines Co.; a former president of the Des Moines Clearing House Asso ciation; director of the Interstate Busi ness Assurance Co.; trustee of Drake University; and a member of the Des Moines Chamber of Commerce, Polk County Tuberculosis Association, the Masonic lodge, Des Moines Club, Wakonda Club, Embassy Club, Bohemian Club and the River Club of Kansas City, Missouri. He is survived by his widow the former Lucille Sandy; a son, James B., who is a vice president at the bank; a brother, Bruce, of Chicago; y V 1 w PROVIDING GROUP LIFE, ACCIDEN TAL DEATH AND DISMEMBERMENT, ACCIDENT AND SICKNESS, HOSPITAL AND SURGICAL BENEFITS FIR S T N A T IO N A L B A N K B U IL D IN G , C H IC A G O 3 , IL L IN O IS A Northwestern Banker, November, 1952 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis \ Iowa News and his mother, Mrs. C. E. Cooper of Des Moines. Marion Bank Sold John B. Thompson of Jesup, Iowa has purchased majority stock in the Farmers State Bank of Marion, Iowa, from George J. Johnson and James F. Gruenwald. All parties in the trans action were represented by the Bank ers Service Company of Des Moines, Iowa. Mr. Thompson has been elected since retiring as executive vice presi dent of the American National Bank of St. Paul, Minnesota several years ago. For several years prior to August 30, 1952, Mr. Thompson was president and active manager of the Farmers State Bank of Jesup, Iowa. The last published statement of the Farmers State Bank of Marion showed total assets in excess of three million dol lars. Chemical Dividend Directors of Chemical Bank & Trust Company, New York, recently de clared the regular quarterly dividend 87 of 50 cents a share on the capital stock, payable October 1, 1952, to stockhold ers of record September 15, 1952. Returns from Tour Mrs. Marie Goldapp, assistant cash ier of McClelland Savings Bank, Mc Clelland, Iowa, has just returned from a vacation trip to Mexico City, Mexico, with WOW Farm Study Tour. Iowa Bank Changes Recently the following changes took place in the status of Iowa chartered banks: The Community Savings Bank of Edgewood, Iowa, increased capital M r . H a u lier! Planning on Fixture Remodeling? BEFORE .M'**•■■-- mmmgsg y >■■- I J O H N B. T H O M P S O N B uys stock in M arion bank president and a member of the board of directors as of October 28th. There are no other changes in the officers or personnel and Mr. Gruenwald will continue with the bank for the present as vice president and cashier. Mr. Johnson, an extensive land own er in the territory north of Marion, has not been active in the bank, but has resided in San Jose, California F ro m th is These pictures show how Jaeger Manufacturing Company transforms drab, out-dated bank interiors into attractive, modern ones . . . and at costs surprisingly low. One of our specialties is the remodeling of old bank fixtures to blend with new interiors. JAEGERS is one of the very few firms with the experience and ''know-all" to handle complete interior bank remodeling jobs. We'll be glad to work with you in bringing YOUR bank's interior up-to-date. Dozens of bank interiors in the middle west have been designed by JAEGERS. We will be happy to furnish their names if you wish. O to th is R e a ##tiiu U g R e m o d e le d I n te r io r hg O •Jaeger F or H an kin g S ervices m m ^ mm SEND FOR CO M PLETE o f S u p e r io r Q u a lity INFORMATION U se Iow a’ s O ldest E stab lish ed in Bank 1856 COUNCIL B L U FFS SAVINGS BANK Member Federal Deposit https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Insurance Corporation AFTER r e m o d e lin g by JAEGERS; B u rlin g to n B a n k <& Trust C o. Write for complete information on remodeling and modernizing your bank fixtures and bank interiors— 70 years of experience back of every Jaeger interior remodeling job! J A E G E R M A N U F A C T U R I N G CO. 8th and Vine Streets Des Moines, Iowa N o r t h w e s t e r n B an ker, N o v e m b e r , Ï 952 88 Iowa News This Company will be represented H ur lin y tou Ita uh at the NEBRASKA BANKERS EDNVENTION November 10-11, 1952 By R E M O D E L E D —Above is an interior view pany, Burlington, Iowa, showing the walnut in the Burlington Bank & Trust Com paneling which was used in a recent remodeling project. The work was done by the Jaeger M anufacturing Company of Des Moines. The men in the picture, seated from left to right, are M . T. Granaman, cashier; George Swiler, chairman of the board; W . H . Swiler, president; Charles L . Bosier, executive vice president; and T. H . Swiler, assistant cashier. Henry H. Byers President Our Bank Sales For 1952, Total $1,424,705.00 Nebraska Banks are in de mand. If you are in the market to buy or sell, don't fail to con sult with Mr. Byers at HOTEL CORNHUSKER Sunday - M onday - Tuesday Hankers Service Co1108-1115 Register & Tribune Bldg. Des Moines 9, Iowa W. H. Swiler, president of the Bur lington Bank and Trust Company, Burlington, Iowa, reports that the first six months in their newly remodeled quarters has shown that customers and employes are enjoying the larger and more convenient arrangements. “We are very much pleased with the fixtures, designed and installed by the Jaeger Manufacturing Company of Des Moines, as they have greatly changed the appearance of the bank,” states Mr. Swiler, bank president. “The walnut cages and paneling give a warmth to the room, which is quite a contrast to our old marble and brass fixtures, and we have had much favorable comment from our custom ers,” Mr. Swiler goes on to say. “ The fixtures give evidence of ex cellent workmanship and the men from Jaeger’s who installed them were most cooperative and disturbed our normal business as little as pos sible,” Mr. Swiler reported after com pletion of the work. from $25,000 to $50,000 by a stock divi dend. The Security State Bank, Hubbard, Iowa, increased capital from $25,000 to $37,500 by a stock dividend. The Farmers State Bank, Struble, Iowa, increased capital from $20,000 to $25,000 by a stock dividend. of a paralytic stroke, during which time he was given the very best, of care and medical attention, Will Kerndt passed away. Many years ago he went into the family mercantile business of G. Kerndt and Bros, which he carried on for many years. He later served as vice president of Kerndt Bros. Savings Bank, being a well known and promi nent business man of Lansing nearly all his life. G. M. Kerndt, president of the bank, passed away shortly after noon a week later. He had been at his custom ary desk in the Kerndt Bros. Savings Bank that morning. At a very early age he entered the mercantile, farm and banking business established by his father nearly 100 years ago and for over 70 years has been one of the mainstays of the firm and bank so well known throughout northeast Iowa. With the incorpora tion of the bank in 1908 he was made its first president and has conscien tiously served in that capacity ever since. Ottumwa Marriage Miss Mary Crofoot and Ensign Max von Schrader, Jr., Ottumwa, Iowa, were married last month in St. Mar garet Mary’s Church in Omaha. Miss Crofoot is the daughter of Mr. and Mrs. Edward B. Crofoot. En sign von Schrader is the son of Mr. and Mrs. Max von Schrader, of Ot tumwa. Mr. von Schrader is president of the Union Bank & Trust Company, Ottumwa. k IOW A •LITHOGRAPHING •COMPANY FOUNDED BY GEORGE H. RAGSDALE • • • EDWIN G. RAGSDALE • SECRETARY 515 TWENTY EIGHTH STREET DES • M O IN E S Q U A LITY - E X P E R IE N C E • S E R V IC E Northwestern Banker, November, 1952 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Kerndt Brothers Two of the four Kerndt brothers of the Kerndt Brothers Savings Bank, Lansing, Iowa, died one week apart recently. After a 16 months illness, the result Iowa News Corning Display During the Fourth Annual Corn Days at Corning, Iowa, held recently, The Okey-Vernon National Bank en tered into the celebration by extensive ly decorating the bank, according to Floyd F. Whitmore, president. Mr. Whitmore says, “Corning had a three day program, parade and corn contest. All stores and business houses were decorated for the festival and personnel donned the dress of jeans and overalls. Most of the decorations T h e co rn d is p la y shown here was planned and arranged by Mrs. Thelma Heitsman, cashier of The Okey-Vernon National Bank, Corn ing, Iowa, for the Fourth Annual Corn Days celebration held in that city recently. were in store fronts and windows, but ours had to be put inside. We had most of our lobby lined with stalks of corn, shucks pulled back, yellow ears showing. On top of our counters we had colored leaves—oak, sumac and bittersweet—with large ears of yellow corn standing upright like large candles. These were mounted on nails in four by four squares cut from a length of two by fours. We also had a table of corn that various customers had brought in just to show what their corn was like. All of our customers and anyone who came in the bank remarked about how nice Remodel at Jewell the lobby looked, and especially the farmers seemed to feel that we were going ‘along .with them’ by display ing their products.” Work was started recently on a very extensive remodeling and repair job of the Farmers State Bank in Jewell, Iowa. The interior of the bank will be completely renovated. The ceiling will be dropped about 14 inches. Mineral tile in white will cover the ceiling and drop down the walls slightly over four feet. From this point down to the floor, walls throughout the building will be in mahogany wood. Most of the present furniture is in mahogany and this will also be refinished. A new aluminum door, with a large plate glass, will replace the one now Crawford Officers New officers of the Crawford County Bankers Association were elected at the annual meeting of the association held last month at the County Club in Denison, Iowa. They are: Paul Clausen, Farmers Savings Bank, Rick etts, vice president; Ted P. Feddersen, Crawford County Trust and Savings Bank, Denison, new president; Walter Noack, Westside Trust and Savings Bank, Schleswig, secretary-treasurer. ★ 89 ★ ★ A Rich Area Sioux City serves one of the richest farm areas in America. Its importance to the live stock and manufacturing industries likewise make a good banking connection here highly desirable. W e invite your inquiry regarding First National correspondent service. JOE T. GRANT, President HAROLD V. BULL, Vice President HAROLD H. STRIFERT, Assf. Cashier WILLIAM L. TEMPLE, Vice President EARL E. SNELL. Assf. Cashier JOHN R. GRANING, Cashier EDWARD V. HOFFMAN, Assf. Cashier ERNEST A. JOHNSON, Assf. Cashier ERNEST A. KENNY, JR., Assf. Cashier ..—■— O ld est in D es M o in es— Y o u r Savin gs A ccou n t N ow In su red U p T o $ 10,000 By F ed eral Savin gs & N A T IO N A L BANK L oan In su ra n c e C o rp o ra tio n V o n t Des Moines Building-Loan & Savings Association E L M E R E. M IL L E R P r e s , an d S ecy . 210 6th Ave. D ial 2 -8 3 0 3 YOUR STATE BANKERS ASSOCIATIOH * OFFICIAL SAFE. VAULT AND TIMELOCK EXPERTS F. E. DAVENPORT & CO. OMAHA https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis in SIOUX CITY H U B E R T E. J A M E S V ic e P r e s id e n t MEMBER FEDERAL RESERVE SYSTEM MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION ★ ★ ★ Northwestern Banker, November, 1952 90 Iowa News W ill H old Open H ouse This M on th R E M O D E L E D — The Columbus Junction State Bank, Colum bus Junction, Iowa, of which H . Lee Huston is executive vice president, has now completed remodeling and alterations on both the exterior and interior of its building. The banking room in use in front. An arched canopy, also aluminum, will be installed over the front entrance. Fiduciaries Meet State Senator Frank P. Johnson of the 37th District in Illinois addressed 55 bank executives attending the fourth annual conference of the Iowa Corporate Fiduciaries Association last month in Davenport, Iowa. Senator Johnson, who writes a daily column, “Window Trimmings,” for the Kewanee Star Courier, entertained the group with excerpts from his column. Selling honest merchandise and abstaining from fancy claims is the surest way we know of to win and keep the public's respect and confidence! has new fixtures, with re-arrangement of fixtures to provide better and faster service to customers. The bank has also in stalled a night depository. An open house for customers and friends is planned for November 21, from 4 to 9 p.m. During afternoon sessions, Robert C. Masters, assistant director, division of examinations, board of governors, and Federal Reserve System, spoke on “ What a Bank Examiner Expects in a Trust Department,” and a forum on various trust subjects was held. Taking part in the panel discussions were Howard L. Johnson, vice presi dent, Security National Bank, Sioux City, Iowa; C. Ream Daughrity, trust officer, Iowa - Des Moines National Bank, Des Moines; A. L. Vogl, vice president and trust officer, American Trust and Savings Bank, Dubuque; E. L. Carmody, vice president and trust officer, Davenport Bank & Trust Com pany, and W. C. Siddle, vice president and trust officer, First Trust & Savings Bank, Davenport. Presiding at the annual meeting was J. M. Hutchinson, president of the association and executive vice presi dent of the Davenport Bank and Trust Company. Moves to Bennett Robert Van Nostrand, who was con nected with the First National Bank of Tipton, Iowa, since May 1st, is now connected with the Bennett State Bank, Bennett, Iowa, having taken up his duties last month. Glidden Anniversary The First National Bank in Glidden, Iowa, is now in its 75th year. In ob servance of this anniversary the bank held an open house in its banking quarters last month for its customers and friends. The bank was organized as a pri vate bank in 1877 and was known as the “Glidden Bank.” In 1892 the offi cers, directors and stockholders ap plied for and obtained a National Bank charter and the bank has been known as the First National Bank since that time. Mt. Vernon Promotion Don Hunter was named assistant cashier of the Mt. Vernon Bank & Trust Company, Mt. Vernon, Iowa, at a meeting of the board of directors last month. Mr. Hunter joined the bank on July 1, 1951. S in c e 1861 Frankel’s O ES M O IN E S Northwest ern Banker, November, 1952 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Resigns at Sibley Glenn A. Johnson has resigned his position with the Sibley State Bank, Sibley, Iowa, to associate himself with Elmer Child in the operation of the local Coast-to-Coast Store. Iowa News IOW A CONVENTION (Continued from page 82) have the power of subpoena and should be responsible directly to the president. It should be under pub lic scrutiny and should make reports . . . that would be available to the pub lic. Outside work (by any govern ment employe) is inconsistent with governmental responsibility. The an swer is fewer people on the payroll, working full-time with adequate sal aries.” Rowland R. Hughes, vice president, National City Bank, New York, and chairman of the A.B.A. “Special Committee on Excess Profits Tax”: The reason the EPT was not cor rected during the last Congressional session was not because Congressmen were particularly unfavorable to banks, but because they had so many groups seeking corrective steps in the tax law, that we were told that if the banks were given any special treatment, it would result only in a flood of protests and unfavorable publicity for all concerned. There is a good chance this law can be cor rected in the next session. (Text of Mr. Hughes’ speech unavailable for direct quote.) Honorable Charles W. Tobey, United States Senator from New Hampshire: “He (Eisenhower) will make a fine leader. If the people don’t take this opportunity to clean house—God help them. The greatest threat today is communism from that godless crowd in Russia, and the man Joe Stalin fears most today is Dwight Eisen hower.” Roswell Magill, New York attorney and former undersecretary of the treasury (1937-38); “Unbalanced budg ets have been the primary cause of the increases in the cost of living and the decline in the value of the dollar. Fundamentally, we don’t need more government controls of prices so much as we need effective govern ment controls of the government’s own spending.” (Mr. Magill pointed out there are only two ways to bal ance the budget, increase taxes or reduce expenditures.) It seems cer tain that the government is taking from us in taxes just about as much as it can, if the enterprise system is to survive. There certainly is room for cuts in the next military budget.” H o n o r a b le W r i g h t P a tm a n , United States Representative from Tex arkana, Texas, and chairman of the sub-committee on “General Credit Control and Debt Management” : “Although I have consistently voted for taxes in hope that a part of the money raised could be used to pay https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis on the national debt, I have come to the conclusion that this debt prob ably never will be paid. Our mone tary system is based upon debt. If all debts were paid we would not have money and credit to carry on the business of the country.” (Mr. Patman reported that his com mittee made recommendations on re serve requirements for banks not members of the Federal Reserve. He said half the nation’s banks are non members, holding 15 per cent of the nation’s deposits, and that all banks should have to abide by the same reserve requirements to conform to national credit and debt manage ment policy.) Dr. James Bryant Conant, president of Harvard University: “ Today I want to explain the next essential steps that seem to lie before us. In so doing, I want to make it plain that I am making no partisan argument. “What I shall argue for is the need of a greater integration of the eco nomic and military resources of the free world. We must tie together the production of weapons in the United States, Great Britain, and the European countries. “ I do not think we have developed 91 proper procedures nor understood the meaning of the mutual security pro gram. “ I foresee years of partial mobiliza tion of the free world—grim competi tion, or armament race, if you like. “ I wish there were no deferment possible, but I am not suggesting that all deferments be abolished. “We must be careful lest we end by choosing officers primarily from the well-to-do rather than from the most able. “To guard against this possibility, the government should be authorized to pay the educational expenses of a considerable p o r t i o n of carefully chosen army and air force students. “ If this is done, then all high school graduates will have a chance to com pete on equal terms for places in col lege officer training units. “ I question whether in the next 50 years the Russian monolithic system can develop the manpower required to make their challenge to the free world successful. “ In short, I put my bets not only on the survival of the free world, but also, given time, patience, and courage on our part, its triumph before this cen tury is done.—The End. faster paper handling and extra worfc space... when LeFebure equipment goes to work for you. T R A Y - B IN D E R S a n d S TA N D S . . . made to fit your sheets— alw ays in easy reach. V E R T IC A L S O R T ER S . . . save time. D ESK a n d TELLER UNITS . . . built to your space and work needs — relieves crowding. FO R M S a n d I N D E X I N G . . . designed to exact requirements. S en d for our Northwestern Banker, November, 1952 92 Iowa News W ANT ADS Rates 15 cents per word per insertion. Minimum: 10 words. NORTHWESTERN BANKER 527 7th St. Des Moines, Iowa FOR S A L E : 1 D iebold In su lated P o stin g T ray C abinet 1 V a u lt T ruck on C asters 3 R econditioned B ran dt M oney C h an gers 1 Johnson L ig h tn in g C h an ger 3 Reconditioned S ta a ts C h an gers 3 Steel K a rd ex C abin ets, 3x5, 4x 6, sizes 1 Cum m ins Check Can celin g M achine 1 A m erican Check Cancelling M achine 1 H 3 model A d d resso grap h 1 10-dr. Steel Check F ile 3 P ortable P o stin g T ra y s 2 L a te Model K eyboard Check W r ite r s C. A . D oyle, 318 G ibson Street E au C laire, W isco n sin 2 check desks, A q u a V e rd e m a r ble, h eavy bronze fittin g s, w eigh t abou t 1,500 pounds. E x cellen t con dition. Inquire M a n a g er, 506 Pence B ld g ., M in n eapolis. HELP W A N TE D B oo k k eep er; experience n ot neces sary ; ex-service m an p referred ; liv in g q u arters a vailab le. S ta rt at once. F a rm e r s S ta te B a n k , O rm sby, M in n . FOR SA L E Tw o B u rrou gh s P o stin g M achines w ith stands — $500.00 fo r both. U nion B an k , Lincoln, N eb ra sk a . ACORN Sale Registers "Accepted Sale Registers by Bank Clerks Everywhere" For info rmatio n w rit e THE AC O R N PRINTING C O . OAKLAND. IOW A ' P U B L IS H E R ’ S S T A T E M E N T Statement o f the Ow nership, M anagem ent, C ir culation required by the A ct o f Congress o f March 3, 1933, o f the N orthwestern B a n k e r , published m onthly at Des Moines, Iowa, fo r October, 1952. 1. N am e o f P u blish er: Clifford De Puy, Des Moines, Iowa. A ssociate Publisher, Ralph W . Moorhead, Des Moines, Iowa, E ditor, H enry H. Haynes, Des Moines, Iow a. M anaging E ditor, Ben J. Haller, J r., Des Moines, Iowa, A dvertising D i rector, Malcolm K. Freeland, Des Moines, Iowa. 2. O w n er: N orthwestern B a n k e r Co m p a n y . Stockholders, Clifford De Puy, Des Moines, Iowa, and Frances Prou ty De Puy, Des Moines, Iowa. 3. That the know n bondholders, m ortgagees and other security holders ow n in g or holding 1 per cent or m ore o f total am ount o f bonds, m ortgages or other securities a re : N one. H en ry H. H a y n e s , Editor. Sworn to and subscribed before m e this 13th day o f October, 1952. D. S p a in h o w e r , N otary Public. (M y com m ission expires July 4, 1954.) N o rth w e ste rn B a n k e r , N o v e m b e r , 1952 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Heads Boston Bank Walter E. Borden, senior vice presi dent and general manager of the Na tional Shawmut Bank, Boston, has been elected president of the bank, succeeding Walter S. Bucklin, who becomes chairman of the board, it was announced recently by Arthur B. Ty ler, vice president and secretary of the board of directors. Mr. Borden, until recently president and treasurer of the Caribbean Sugar Company, has had a long career in commerce, industry, agriculture and finance. In the 1920’s he managed a chain of self-service groceries in Rhode Island, forerunners of today’s super markets. Educated as an engi neer, Mr. Borden was employed by the Caribbean Sugar Company to assist in the construction of a sugar plant in Cuba. He later headed up this opera- tion as president and treasurer, a post he filled until the assets and physical properties of the company were sold in 1951 to the Punta Alegre Sugar Corporation of Cuba. Elected at Davenport The appointment of Fred W. Yeadon, Jr., as comptroller at Northwest Bank & Trust Company, Davenport, Iowa, was announced by Walter F. Meiburg, bank president. A native of Manning, Iowa, Mr. Yeadon received the bachelor of sci ence degree in commerce from the State University of Iowa in 1948, and has been employed as an assistant bank examiner of the FDIC in eastern Iowa since that time. In his new position he will be in charge of North west Bank internal operation and con trol. H H anover Bank, T h e ........................................... Harris Trust and Savings B a n k ................ Honor B oll B anks— N e b rask a................... Humm er, W ayne, and C om pany................ INDEX Ol ADVEItTISEHH I Imperial Bank of C anad a............................. Inter-State National B a n k ........................... Investors Diversified Services, Inc........... Iow a-D es Moines National B a n k ............. Iow a L ithographing C om pany.................... Iow a M utual Insurance C om pany.............. Irving Trust C om pany.................................... N O V E M B E R , 1952 Acorn Printing- Co............................................ 92 A llied M utual Casualty C om pany................ 50 Am erican National B ank— St.Joseph. . . 69 A m erican National Bank and Trust Co.. 39 Am erican Trust Company— San F ra n cisco ................................................................... 29 Bank of A m erica ............................................... 55 Bank of M on trea l............................................... 40 Bankers Service Company, Inc.................... 88 Bankers Trust Company— Des M o in e s.. 81 Banks, W illia m H., W arehouses, I n c .... 72 Biloxi H otel ........................................................ 41 Burroughs Adding Machine Company. . 48-49 C Cascade Paper Com pany................................ Central N ational Bank and Trust Co.. . . Central Republic C om pany........................... Central States M utual Insurance A sso ciation ................................................................. Chase National B a n k ...................................... City National Bank and Trust Company — Chicago ........................................................ City National Bank and Trust Company — K ansas City ............................................... Commerce Trust C om pany........................... C ontinental-Illinois National Bank and Trust Company ........................ Continental National Bank— Lincoln. . . . Council Bluffs Savings B a n k ...................... Cummins Business Machines Corpora tion ..................................................................... 1) Davenport, F. E., and C o m p a n y ..71, 72, De Luxe Check Printers, Inc........................ Des Moines B uild ing-L oan and Savings A ssociation ...................................................... Diehold, Inc............................................................ Douglas, John, and Company, Inc............. Drovers National B a n k .................................. 40 12 45 46 9 14 42 32 27 72 87 64 26 67 45 96 88 51 25 .1 Jaeger Manufacturing Company.................. 89 58 89 33 75 35 87 Iv K irk p atrick -P ettis Company .................... 75 Koch B r o t h e r s .................................................... 90 ILaM onte, George, and S on ...................... 3 6 Law rence W arehouse C om pany.......... LeFebure Corporation ............... 91 Lincoln H otel ................................................... 82 Live Stock National Bank— Chicago. . . . 30 Live Stock National Bank— O m aha.... 76 Live Stock National Bank— Sioux C ity. . 56 Long, R. C., and Com pany...................... 44 >1 M anufacturers T rust C om pany............. M arquette N ational B a n k ........................ Merchants M utual Bonding Co............ Merchants National B a n k ........................ Midland National B a n k ............................ M innesota Commercial M en’s A ss’n... M osler Safe C om pany............................... 31 83 51 2 54 55 7 N National Bank of Com m erce................. 71 National Bank of T u ls a ............................ 60 National Company of O m aha............... 73 National Reserve’ L ife Insurance C o .... 50 N orthw est Security National B a n k .... 59 O Omaha National B a n k ............................. E E llinor V i l l a g e .................................................... 80 Em arines .............................................................. 80 E ntertrainm ent, Inc.......................................... 38 F F irst of Iow a C orporation........................... F irst National Bank— C h icago.................... F irst National Bank— L in co ln .................... First National Bank— Om aha...................... F irst National B ank— St. J o s e p h .............. F irst National B ank— St. P a u l.................... F irst National B ank— Sioux C ity .............. F irst National Bank and Trust Company — T ulsa ............................................................... F irst W isconsin National B a n k .................. F ran k el Clothing Com pany......................... 95 28 68 45 23 R Recordak C o r p o r a tio n .............................36-37 Record A ssociates, Inc.............................. 34 Royal Bank of Canada............................... 54 S St. P aul-M ercury Indem nity Company. . 46 Scarborough and C om pany............. 51, 71, 86 Schweser, Robert E., C om pany............. 75 Smith, Polian and C om pany................... 73 Stock Yards National Bank— Om aha. . . . 65 T 44 4 70 69 67 52 89 61 8 90 Toy National B a n k ........................................... 84 U United States Check Book C o m p a n y ... 75 United States National B a n k .................... 62 V V alley National Bank— P h oe n ix................ 40 V alley Bank and Trust C om pany........... 85 w W alters, Charles E., C om pany.................. 67 93 In the DIRECTOR’S ROOM Q u ite a S p ell Said the young jester, “First I got tonsillitis, then appendicitis and pneu monia. After that I got erysipelas w i t h hemochromatosis. Following that, I got poliomyelitis, and finally ended up with hypodermics and inocu lations. I certainly thought I never would get through that spelling test!” M od ern T ou ch The apple is well known historically, but it took the grapefruit to get into the public’s eye. One C h o ic e First Gal: Where did you get that beautiful diamond? Second Same: My grandmother died and left $2,000 for a stone in her memory; this is it. E a sy D o e s It A country couple visited the Chicago Art Institute and in the Egyptian room gazed at a mummy over which hung a card on which was printed: “97 B.C.” “What does that mean, Hiram?” asked Mary Ann. “ I don’t rightly know,” drawled Hiram, “but like as not it’s the number of the car that killed him.” H it a n d R u n D r iv e r “ Mrs. Matthews’ dog has been killed. Break the news to her gently.” “Okay, I’ll begin by saying it was Mr. Matthews.” W ho K n ow s? B e g in n in g This happened after World War III, when atomic bombs had killed every last human being. After three or four days, when the dust and debris had settled, a couple of monkeys came out of their cave and solemnly surveyed the desolate landscape. After several minutes the small monkey turned to his friend and said, “Well, honey, shall we start the whole darn thing over again?” 1 9 5 2 V er sio n Butcher to housewife: Two pounds of steak! Would you like it giftwrapped? R e m o te C o n tr o l “Good morning, Doctor. I just dropped in to tell you how much I benefited from your treatments.” “But you are not one of my pa tients.” “ No, but my uncle was, and I’m his heir.” F a th er L ik e S on Father: Son, I never kissed a girl before I met your mother. Will you be able to say the same thing to your son? Son: Sure, Dad, but not with such a straight face. T ough Q u e s tio n Home Economics Teacher: If the sauce begins to boil, put in a table spoon of water. Student: Level or heaping? https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis G r a v e S o lu tio n Question: Next to a beautiful girl, what do you consider the most inter esting thing in the world? Answer: Brother, when I’m next to a beautiful girl I don’t bother with statistics.” A drunk fell out of a sixth story win dow and landed in the street without any apparent harm. A crowd gathered around him and a cop rushed up and said, “What hap pened?” “ I don’t know,” said the drunk, ris ing and brushing himself off, “ I just got here myself.” C O N V E N T IO N S November 10-11, Annual Convention, Nebraska Bankers Association, Lincoln, Hotel Cornhusker. November 10-11, A .B .A . Savings-Mortgage Division Conference, Minne apolis, Hotel Nicollet. November 13-14, Mid-Continent A .B .A . Trust Conference, Dallas, A dol phus Hotel. November 13-14, Agricultural Repre sentatives Meeting of Agricultural Commission, American Bankers Association, Louisville, H o t e l Kentucky. November 24-25, Member Bank Direc tors and Officers’ Assembly, spon sored by Federal Reserve Bank of Minneapolis, Minneapolis, Hotel Nicollet. November 30-December 5, Investment Bankers Association, Annual Con vention, Hollywood, F l o r i d a , Hollywood Beach Hotel. January 5-February 28, 1953, North Dakota Bankers Asociation, Short Course, North Dakota Agricultur al College, Fargo. March 22-24, Independent Bankers As sociation of America, 19th annual convention, Atlanta, Georgia. May 15-16, North Dakota Bankers As sociation A n n u a l Convention, M inot, Clarence Parker Hotel. F in a l P r o o f The doctor had called five times. On the last tient announced he had other doctor. “ He said that your wrong.” “ Is that so?” first doctor. “Well, the show who is right.” on a patient visit the pa called in an diagnosis is snapped the autopsy will P ie -E y e d A drunk staggered into an automat, put some nickels into a slot and watched in astonishment as out came a piece of cherry pie. He put in some more nickels and out came another slice. He continued to feed in more nickels until he had almost a dozen pieces of pie. One of the attendants finally asked him, “Don’t you think you had better stop now?” “What?” cried the drunk. “Quit now, when I’m still winning?” M is ta k e n Id e n tity Mr. Suburb kissed his wife a fond farewell as he was about to catch his morning bus. But, for the first time in five years, he missed it. Thinking to surprise his spouse, he tiptoed into the kitchen, and implanted a tender kiss on the back of her neck as she was washing the dishes. “Good morning,” she said, “ I’ll have two bottles of milk and a pint of cream.” Northwestern Banker, November, 1952 94 LEGAL Can M isu sed Funds B e B eco rered From Life In su ran ce P roceed s? This and Other Questions Are Answered by Our Legal Department in order that there will be no degrada tion of the neighborhood. Q . A bank employe misappropriated certain funds of the institution for which lie worked and used them to buy life insurance. His misappropria tions were discovered and be was un able to repay to the bank the missing money. Would the bank, as a general rule, be able to assert a valid claim on the proceeds of the employe’s insur ance in its activities concerned with recouping its losses? Q. Suppose that a bank, due to ex pansion, comes to need additional space for its operations and leases cer tain upstairs offices in a nearby build ing. Suppose further that the lease is silent as regards the use of the lobby and stairs of that building and they are absolutely needed as passageways for bank employes in coming and going to the offices. In such situations have the courts in many cases held tenants to be privileged to use such appurte nances? Yes. Where funds of another have been misappropriated and used to pur chase, or pay premiums on, life insur ance, the courts will generally allow some form of recovery from the pro ceeds by the one whose funds were so misused. Minnesota, Wisconsin, Illinois, Michigan, Kansas, Tennessee and Louisiana are among the states in which this rule has been recognized. Q. Race succeeded in extorting $50,000 in cash on a false claim from a cer tain family by threats to kill them. He did not report receipt of the money in his federal income tax return and was charged criminally with tax eva sion. Was he guilty? Yes. The United States Supreme Court has so ruled in a recent analo gous decision. The basis for the hold ing was that the funds were received in circumstances whereby the extorter was not apt to have to return them and could enjoy their use as fully as though his title was unassailable. In view of this the cash paid to him con stituted taxable income. Q. Hobart started a fire to burn oft' some weeds on his farm which ad joined that of Bradley, a bank director. He was not negligent in any way in starting it or in managing and tending it. For some unexplained reason the fire spread to Bradley’s farm and de stroyed four apple trees. The matter was not covered by statute. Was Ho bart liable to Bradley for the apple tree loss under the general rule of law applicable? No. The general rule in this country is now well settled that when an owner N ort hwestern Banker, November, 7952 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LEGAL DEPARTMENT of the NORTHWESTERN BANKER of property sets a fire on his own prem ises for a lawful purpose, and not in violation of any statute, he is not, in the absence of a statute to the con trary, liable for damage caused by spread of the fire to the property of another, unless he is negligent in start ing, or negligent in controlling it. Iowa, Minnesota, Nebraska, North Dakota, and South Dakota are among the states in which this rule has been specifically recognized. Q. An individual sought to erect a trailer camp in the outskirts of a South Dakota city. Those living nearby went into court and asked that he be stopped from doing so on the grounds that it would be a nuisance when it Avas com pleted and in operation. Should such plaintiffs prevail in their suit? No. A tourist camp or similar estab lishment does not constitute a nuisance per se. The South Dakota Supreme Court has so held in a recent decision, being supported in this position by similar rulings in Michigan, Arkansas, and Texas. Such camps, however, may become nuisances by reason of the manner in which they are operated and when this occurs the parties ag grieved may cause them to be stopped Yes. In a large number of cases it has been held or recognized that if the use of the part of the building not in cluded in the lease is necessary to the use of the part of the building demised, then the easement or privilege therein passes by implication to the tenant. Cases so holding may be found in Iowa, Minnesota, Nebraska, Wisconsin, Illi nois, and elsewhere. Q. Cunningham, a banker, was ex ecutor of the estate of a decedent which Avas subject to the Federal es tate tax. In computing its net value for Federal estate tax purposes he dededucted from the gross a reasonable estimate of the amount that Avould be allowed him as executor by the laws of the jurisdiction in which the estate AAas being administered. His commis sions, however, had not at that time been either awarded by court decree or paid. Should he be sustained in taking the deduction? Yes. It is well settled that expenses of administration, including executors’ commissions, are deductible in com puting net estates for the purpose of Federal estate taxes before they have been paid or allowed by the court hav ing jurisdiction of the probate of the estate provided such expenses are a reasonable estimate of the amount al lowable under local law. The U. S. tax court has so stated in a recent decision. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 572 Banks from all parts of the country have been Hanover Correspondents for over 50 years AN UPSTATE b a n k e r ••. NEW YORK w r it e s I havealwaysfou n d you ready to cooperate in any w a y... it has been a pleasure to know the officers in the va rious departments and to receive their valuable advice upon problems which were and are constantly appearing to the small country banker. ” A BANK IS KNOWN BY THE CORRESPONDENTS IT KEEPS T h e H a n o v e r Member Federal Deposit lhI^M I , '*°t nouciA B a n k Insurance Corporation FO R C O L L E C T IO N S E R V IC E ROUTE GRAIN D R A FTS TO THIS B A N K natural result of high crop yields is great er shipments of grain. Iowa Banks are invited to route grain drafts and other items to this Bank for collection, and to make full use of our many other correspondent services. A steadily growing volume of transit busi ness indicates that Iowa Banks and Bank ers are relying to a greater extent than ever before on the facilities of this Bank to provide prompt collection service for their customers. FOUNDED 1868 TO TA L RESO URCES OVER ONE HUNDRED MILLION DOLLARS I0WA-DES MOINES NATIONAL BANK https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Member Federal Deposit Insurance Corporation
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