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U J U IIlU l f f

M JK J 1


Federal Reserve Bank of St. Louis


Leonard Broulik, Vice President,

Correspondent Banking is a^finMtm Service
at The Merchants National
Electronic data processing, automation of banking operations-these
are all new tools we use proudly at MNB. But while this automation
means an even wider range of services and increased efficiency for
our correspondents, we know that to serve you best we must keep
your individual requirements uppermost. Whether you talk with
Leonard Broulik, Forbes Olberg, Everett Pratt or any of our officers,
you’ll find that your needs and your wishes are always their first
interest. This personalized service is enjoyed by over half of all Iowa
banks. If you aren't one of them we’d like to tell you more about us.
Digitized forJust
give us a call.
Federal Reserve Bank of St. Louis

M E M B E R F .D .I .C ,


Are profit opportunities hidden
in your o p eratin g procedures?
Your b a n k ’s operations are an im p o rtan t factor
in your costs and profits. T hey can also have a
su b stantial effect on custom er relations.
Our correspondents often ask our assistance
in analyzing their operating procedures, sys­
tem s, and costs. This is a service we are glad
to provide. M any tim es these surveys reveal
opportunities for significant im provem ent.


If you feel th a t an operation study could be
of help to your bank, we invite you to discuss
this service—as well as other N orthern T ru st
correspondent banking services—w ith us. If
you are n o t already accquainted in th e B ank,
address your inquiry to N. H all Laym an, Vice
P resid e n t, or one of his associates in th e
Banking D epartm ent.

N O R T H E R N / rR U S T



FI 6 -5 5 0 0 . M E M B E R F. D. I. C.


N o . 904. N o r th w e s te r n B a n k e r is p u b lis h e d m o n th ly by th e N o r th w e s te r n B a n k e r C o m p a n y , 306 F i f te e n th S tr e e t, D es M o in es 9, Io w a . S u b s c r ip tio n _ 35c
p e r co p y , $8 p e r y e a r. S eco n d class p o s ta g e p a id a t D es M o in es, Io w a . A d d re s s all m a il ( s u b s c r ip tio n s , c h a n g e o f a d d re s s , F o r m 3579, m a n u s c r ip ts ,
m a il ïtee*fc» ) to a b o v e a d d re s s .
Federal Reserve Bank of St. Louis


L ib e ra l a llo w an ce given on e a rlie r m odels a g a in st p u rc h a se price o f new


eco rdak


e l ia n t

500 M ic ro film er.

Trade in 2 for 1...
and come out ahead on the deal!
M any banks have found th at one R ecordak R eliant 500 M icrofilm er
w ith an ad d itio n al film u n it easily outperform s two or m ore older
m icrofilm ers . . . handles m ore work, increases efficiency, cuts costs.
If you now hav e a new R e l i a n t
500 in your bank and an older m icro­
filmer, you can m ake the same econ­
omies by trading in this older m achine
for an extra film unit.

d ep artm en t’s work is on separate film
rolls ju st as if separate microfilmers
had been used.

W ith a R e l i a n t 500 a n d ex tra
film units, two or m ore departm ents
can do their m icrofilming w ith the
same m achine. It takes only a second
to slip out the original film un it . . .
and substitute another. This way each

T his new R e c o r d a k R e l i a n t 500
M icrofilm er photographs up to 500
items a m inute—one or both sides,
and it indexes the film record. Also,
w ith an accessory endorser, it en­
dorses or cancels as it microfilms

Nort hwest ern Banker, November, 1962
Federal Reserve Bank of St. Louis

checks in one autom atic operation.
C ontact your local R ecordak rep­
resentative, or w rite for com plete de­
tails. R ecordak C orporation, Dept.
A -4,770 Broadway, New York 3, N. Y.

Speeds u p all operations
(Subsidiary of Eastman Kodak Company)

originator of modern microfilming
— now in its 35th year
IN CANADA contact
Recordak of Canada Ltd., Toronto


U nusual Shot

O ld est F in a n c ia l J o u rn a l W est o f th e M ississip p i

for your N O V EM B ER , 1962, reading

T V S E R I E S — W h en is a b a n k v a u lt a TV
s e t? W h en M G M decides to use i t as a
b a c k g ro u n d fo r a sequence in a TV series.
W ells F a rg o B a n k sta ffe rs c o n d u cted b u si­
ness as u su a l w h e n th e c a s t a n d crew of
“ Sam B e n e d ic t/’ b a se d on a d v e n tu re s of a
S a n F ra n c is c o law y er, sp e n t th e d a y sh o o t­
in g up W ells F a rg o ’s sa fe d e p o sit d e p a r t­
m e n t w ith film in s te a d o f b u lle ts.

6 8 th Y ear

No. 9 0 4


S h elter House


A c ro s s th e D e sk f r o m th e P u b lis h e r


F P R A E le c ts N e w O fficers
F ro n tis P a g e — “ A P e rfe c t T e a m ”
7 N e w B a n k R e g u la tio n s — Jam es J . Saxon
T h e 1962 T a x R e v is io n B ill — Carl T. Curtis
O u r C o m m u n ic a tio n s B e tw e e n B a n k s C a n B e S p e e d ed
-— D. E . W illiam s
J o i n t O w n e rs h ip C u ts F a r m C o sts — John M. McGregor
P u b lic R e la tio n s I d e a s to H e lp Y o u
H e lp Y o u r C u s to m e rs K e ep W o r k in g C a p ita l W o rk in g


A B A A g r i c u l t u r a l C r e d it C o n fe re n c e P r o g r a m
B u y in g a n d G iv in g B u s in e s s G ifts

— K enneth C. Glaser

Photo by Ken Glass

A T T R A C T I V E school bus sh e lte r, lo c a te d
on H ig h w a y 6 w e st o f D es M oines, is a
w elcom e site fo r school c h ild re n in b a d
w e a th e r. P ro v id e d b y th e D a lla s C ounty
S ta te B a n k ’s V a n M e te r office, i t offers a
p r a c tic a l w a y in w h ic h th e b a n k can a d ­
v e rtis e its f a c ilitie s . I t s b r ig h t re d p a in te d
w a lls a n d w h ite ro o f w ith le tte r e d sig n
m ak e s i t loom up w h e n you a p p ro a c h it
fro m e ith e r d ire c tio n on th is m a jo r h ig h ­
w ay.
P U B L I S H E R ’S S T A T E M E N T
S ta t e m e n t r e q u ir e d by t h e A c t o f A u g u s t 24,
1912, a s a m e n d e d b y th e A c ts o f M a rc h 3, 1933,
a n d J u ly 2, 1946 ( T i tle 39, U n ite d S ta t e s Code,
S e c tio n 2 33) s h o w in g t h e o w n e rs h ip , m a n a g e m e n t,
a n d c ir c u la tio n o f T h e N o r t h w e s t e r n B a n k e r ,
p u b lis h e d m o n th ly a t D es M o in es 9, Io w a f o r
N o v e m b e r, 1962.
1. T h e n a m e s a n d a d d re s s e s o f th e p u b lis h e r,
e d ito r , m a n a g in g e d ito r, a n d b u s in e s s m a n a g e r s
a r e : P u b lis h e r , C liffo rd D e P u y , D es M o in es, Io w a ;
E d i to r , B e n H a lle r, J r . , D es M o in es, Io w a ; P r e s i ­
d e n t, M alc o lm K . F r e e la n d , D es M o in es, Io w a ;
A s s o c ia te E d ito r s , W a lte r T . P r o c to r a n d D oyle
M in d e n , D es M o in es, Io w a .
2. T h e o w n e r is : N o r t h w e s t e r n B a n k e r Co m ­
p a n y , 306 1 5 th S tr e e t, D es M o in es 9, Io w a ; M al­
co lm K . F r e e la n d , P r e s id e n t, D es M o in es, Io w a ;
B e n H a lle r, J r . , V ic e P r e s id e n t, D es M o in es, Io w a .
3. T h e k n o w n b o n d h o ld e rs, m o rtg a g e e s , a n d
o th e r s e c u r ity h o ld e rs o w n in g o r h o ld in g 1 p e r c e n t
o r m o re o f to t a l a m o u n t o f b o n d s, m o rtg a g e s , o r
o th e r s e c u ritie s a r e : M alc o lm K . F re e la n d , P r e s i­
d e n t, D es M o in es, Io w a ; B en H a lle r, J r . , V ice
P r e s id e n t , D es M o in es, Io w a ; C liffo rd D e P u y ,
C h a ir m a n , D es M o in es, Io w a ; F r a n c e s P r o u ty D e
P u y , D es M o in es, Io w a .
M a lco lm F r e e l a n d , P r e s id e n t.
S w o r n to a n d s u b s c rib e d b e fo re m e th i s 2 1 s t d a y
o f S e p te m b e r, 1962.
( S e a l)
B e n H a l l e r , J r ., N o ta r y P u b lic
(M y co m m is s io n e x p ire s J u ly 4, 1963)

M in n e s o ta
T w in C ity
S o u th D a k o ta
N o r t h D a k o ta
C o lo ra d o
W y o m in g

N ew s
N ew s
N ew s
N ew s
N ew s
N ew s



M o n ta n a N e w s
N e b rask a N ew s
O m aha N ew s
L in c o ln N e w s
Io w a N e w s
D e s M o in e s N e w s


C o n v e n tio n s
N e b r a s k a C o n v e n tio n R e p o r t
Io w a C o n v e n tio n R e p o r t

306 15th Street, Des Moines 9, Iowa, Telephone (Area Code 515) 244-8163
P ublisher
Clifford De Puy

A ssociate P ublisher
Malcolm K. Freeland

A ssociate E d ito r
Walter T. Proctor
A d v e rtisin g A s s is ta n t
Elizabeth Cole

A ssociate E d ito r
Doyle Minden

C irculation D e p a rtm e n t
Lena Sutphin

F ield R e p rese n ta tiv e
AI Kerbel

E d ito r
Ben J. Haller, Jr.

A u d ito r
Bertha Soderquist
Field R e p rese n ta tiv e
Paul Masters

Frank P. Syms, Vice President, 550 Fifth Avenue, New York 36, JUdson 2-7126
Milton P. Bock, Vice President, 654 Baker Building, Minneapolis, FEderal 6-5357

DE PUY PUBLICATIONS: Underwriters Review, Northwestern Banker,
Iowa-Nebraska Bank Directory
Northwestern Banker, November, 7962
Federal Reserve Bank of St. Louis


4 hr is turns 0'tub Hoports Record
Savings of $ l 95 7 3 9S 6 t9000
N ALL-TIM E record of $1,573,861,000 in C h ristm as Club savings
has been rep o rted for 1962 by E dw ard
F. Dorset, p resid en t of C hristm as Club
a C orporation, New York.
The record w as accom plished by 13,711,000 m em bers of C h ristm as Club in
some 9,000 financial in stitu tio n s. The
average m em ber saved $115 each to
total th is huge C hristm as bonanza.
This is th e 11th year th a t club disb u rsem en ts have exceeded $1 billion,
according to C hristm as Club a Corporation surveys, and th e second y ear
th a t th e to tal has been over a billion
and a half dollars, Mr. D orset said.
The 1962 to tal re p re se n ts C hristm as
savings in all 50 states w ith N ew York
leading, followed by P ennsylvania,
New Je rse y and California.
Surveys by C h ristm as Club a Corporatio n show th a t th e to tal will be used
in the follow ing ways:


C hristm as P u rch ases—30
p er cent ..........................$ 472,158,300
Savings and In v estm ent
for F u tu re Use—42 per
cent ..................................
T axes—17 p er c e n t..........
Year-end Bills—5 p e rc e n t 78,693,050
M iscellaneous—6 p er cent
“C h ristm as Club has become a p a rt
of th e A m erican w ay of life,” said
Mr. D orset. “I t’s our proof th a t in
th e ir own sm all w ay every m an and
w om an can be a capitalist and decide
for them selves w h at th ey will save
anc* ^ ow

B u rrou gh s E arnings Up
B urroughs C orporation has reported
reven u e for the nine m onths ending
Septem ber 30 of $303,500,000, comp ared w ith $282,318,000 for th e sam e

We used to discard our punched
paper tape... miles of i t ... after it
had served its purpose. That pur­
pose was to activate the automatic
typesetting machines in casting the
customers’ names, addresses and
MICR code lines. Now we’re sav­
ing it, or rather our customers are
saving it for us. Each of our reorder
forms now carries a pocket which
contains the small piece of punched
paper tape which was used to set
the type for printing the order.
When these reorders are subse­
quently returned to us, the small
tapes will be fed into a regenerat­
ing unit to create a new continuous
tape which will be used for the
It sounds so logical that one
might be tempted to question why
the procedure was only recently
adopted. Frankly, we had a few
problems. The first was a technical
problem involving the mixing of
several sizes of type on one tape,
the second was availability of the
tape regenerating units, and the


This new procedure does not have
any tremendous significance to the
customer . . . his checks will look
the same. W hat it does do is
diminish our opportunity for error
in that, if the type is set correctly
on the first order, it follows that
it will be set correctly on the
second and all subsequent orders,
barring typecasting machine error.
It may also reduce somewhat the
time necessary to get the orders to
the presses and we may be able to
provide slightly better service.
With proved correct MICR code
lines on checks, the banks will be
spared the irritation of missorts or


S u ggests Tax Cut
A m ore favorable environm ent for
business profits is th e key to th e n a­ j
tio n ’s economic grow th, David M.
K ennedy, chairm an of C ontinental
Illinois N ational
B ank and T ru st 4
Company, Chica­
go, said recently.
M r. K e n n e d y
e x p r e s s e d confi­
dence in the n a ­
tio n ’s lo n g - te r m
growth, but
stressed th a t the
o n ly w a y s u c h ?
grow th can be ob­
tained is to as­
su re th a t corporate profits grow w ith
th e economy.
F rom a psychological point of view,
he said, “hoped-for cuts in corporate
tax rates m ay be one of the m ost im ­
p o rtan t factors tow ard speeding up
grow th of th e economy.
“W ith pre-tax corporate profits ru n ­
ning a t b e tte r th a n a $50 billion an ­
nual rate, a cut of five percentage
points w ould add m ore th a n $2.5 bil­
lion to the funds w hich corporations
w ould have available eith er to pay
out in dividends or to rein v est in busi­

W alter J. H ein
W alter J. Hein, v eteran St. Louis
b anker and civic leader, died at 3:40
p.m., October 25, at B arnes H ospital,
St. Louis, after a sh o rt illness, of cere­
bral throm bosis. He w as 70 y ears old.
Mr. Hein, form erly a senior vice
p resid en t of M ercantile T ru st Com­
pany, rem ained a consultant to the
bank follow ing his retirem en t in De­
cem ber, 1960.

V alley N a tio n a l P r o m o tio n s

So tape saving is now a part of
our standard procedures. It accents
accuracy and is added assurance
that your customers will receive
correctly printed checks.

The appointm ent of tw o new vice
presidents and tw o new tru s t officers
headed a list of prom otions m ade re ­
cently by th e Valley N ational Bank,
Phoenix. The group includes:


M inton Moore to vice p resid en t in -T
charge of th e research departm ent;
J. R. L itzelfelner to vice president,
general adm inistration; W illiam Isaac­
son to tru s t officer in charge of the
b a n k ’s tru s t tax division, and C hester
Seftenberg to tru s t officer in charge of
the corporate tru s t division.


Northwestern Banker, November, 1962
Federal Reserve Bank of St. Louis

third the development of systems
and procedures. These difficulties
are now behind us and the program
is in full operation in all plants.

period of 1961. N et earnings w ere
$5,869,000 against $5,500,000 last year.
Based on the average shares o ut­
standing, n et earnings w ere 88 cents
per share v ersu s 83 cents in 1961.











YOU CAN B U Y ! ! ! ! ! !
Your bank never loses the personal touch
with Diebold Vue-Matic banking, because big
picture television and high fidelity, fullytransistorized intercom system provide a
person-to-person feeling that’s important to
your customers, invaluable to your bank.
This is only one of the many superior
features Diebold Vue-Matic banking offers
you. Send for complete information that
will convince you to investigate Diebold
Vue-Matic banking before you invest.
Federal Reserve Bank of St. Louis

D ept. B- 123

DIEBOLD, Incorporated, C an to n 2, Ohio
G e n tle m e n : P le a s e sen d m e c o m p le te in fo rm a ­
tion on D ieb old V u e -M atic b a n k in g .

S ta te

Northwestern Banker, N o vem b e r, 1962


h ire Stock Conference Features
iinreuu President
N TUESDAY, N ovem ber 27, our
b an k er friends and th e ir w ives
can expect one of th e m ost info rm a­
tive and e n te rta in in g p rogram s we
have ever p resen ted ,” said David H.
R eim ers, president, in announcing
The Live Stock N ational B ank of Chi­
cago’s 1962 Stock Show P arty .


D. H . R E IM E R S

C. B. S H U M A N

“W e are v ery fo rtu n a te and pleased,”
Mr. R eim ers said, “to have as our
principal sp eaker C harles B. Shum an,
p residen t of The A m erican F a rm B u­
reau F ed eratio n .”
Tim ed to coincide w ith the H orse
Show at th e In te rn a tio n a l A m p h ith ea­
ter, th e annual event is one of th e
highlig h ts on the m idw est b a n k e rs’

social calendar. L ast year, over 400
persons w ere in attendance.
Schedule of activities for th e day
and evening of N ovem ber 27 are as
9:00 to 5:00 p.m. Open H ouse—R egis­
tra tio n and A fternoon P rogram
at The Live Stock N ational
B ank of Chicago.
3:00 “F ive M onths of the U niform
Com m ercial Code in Illinois”—
J. A rden R earick of W inston,
Straw n, Sm ith & P atterson.
S h o r t in tro d u cto ry r e m a r k s .
Q uestion and answ er session.
4:00 “The Live Stock P icture To­
d ay”—L. H. Sim erl, U niversity
of Illinois.
5:00 Cocktails — F ou n d ers Hall of
th e Saddle and Sirloin Club,
Stock Y ards Inn.
7:00 “N ational Affairs as T hey Af­
fect A g ricu ltu re” — C harles B.
S h u m a n , president, A m erican
F a rm B ureau Federation.
7:30 H orse Show, w ith A rth u r God­
frey—In tern atio n al A m phithea­

28 R EA SO N S
W H Y S T . PA U L FO RM 24
IS Y O U R B E S T B U Y !

NCR S ales In crease
Sales of th e N ational Cash R egister
Com pany for the first nine m onths of
1962 rose to $393,577,734, com pared
w ith $361,776,309 for the com parable
period of 1961, or an increase of 9
per cent, R obert S. Oelman, NCR
chairm an and president, announced.
R eported n et incom e w as approxim ately the sam e as last y e a r’s, w ith
$13,515,311 rep o rted for th e first nine
m onths of 1962, com pared w ith $13,428,864 for th e sam e period of 1961.



F o r m o re in fo r m a t io n

3 8 5 W a s h in g to n

c a ll y o u r

S t . P a u l, M in n .

S t. P a u l A g e n t to d a y!
S e rv in g you around the w o r ld . . . around the d o c k

St. Paul Fire & Marine Insurance Company
St. Paul Mercury Insurance Company
Western Life Insurance Company

Northwestern Banker, November, 1962
Federal Reserve Bank of St. Louis


St. L o u is C om p u ter C enter
An electronic com puter center, ca­
pable of processing 1,200 checks a
m inute, w as unveiled recently by
F irs t N ational B ank in St. Louis in
th e b a n k ’s new six-story building ad­
The com puter center, located on the
fo u rth floor of the building, houses a
G eneral E lectric “210” com puter sys­
tem w hich w ill be used initially in
processing checking accounts. The
system is capable of perform ing n u ­
m erous o ther functions and will u lti­
m ately be used to provide new and
expanded services for th e b an k ’s cus­
tom ers.

T o H ead S carb orou gh
H a rry F. Ollendorf, 20-year v eteran
w ith Scarborough & Company, Chi­
cago w as elected p resident of th e com­
pany last m onth. He succeeds the
late H en ry Scarborough, w ho founded
th e firm 42 y ears ago.
O ther executive changes announced
by th e insurance com pany are: Rich­
ard C. Ross, form erly eastern fieldman
in N ew ark, N. J., to vice p resident in
charge of sales, and Ted Nork, claims,
to vice president.

T w o N ew O fficers

There are 28 specific points of comparison between the
St. Paul Bankers Blanket Bond Form 24 with Extended
Coverages and the standard form. Compare these
points and you’ll see why the St. Paul coverage is
your best buy. I t always includes the basic coverages
in the standard form. An outline of these 28 specific
points is available to you, ju st w rite to us or see
your St. Paul agent.


Irv in g Seam an, Jr., president, Natitonal B oulevard Bank, announced in
Chicago th e board of directors elected
Denis J. Daly a ssistan t auditor. Mr.
Daly has been w ith th e b a n k ’s audit
d ep artm en t since October 8.
A t th e sam e tim e, th e directors pro­
m oted H arold J. Lind to assistan t
cashier, operations departm ent.

M aurice S in g er
M aurice Singer, 55, assistan t vice
presid en t of M ercantile T ru st Com­
pany of St. Louis, died last m onth.
Mr. Singer, w ho rep resen ted the
b ank in Illinois, Indiana, Iowa and
K entucky, is survived by his wife,
Mrs. A nn S chutzenhofer Singer; his
m other, Mrs. M ary E llen Singer, and
a b ro ther, W alter Singer.




For the banker whose growth is blocked by outmoded, inefficient quarters,
and who still wants to stay in his present location, the rewards from mod­
ernization can be great. But great risks can also be present. . . particularly
in renovating older buildings. Their weathered faces too often hide a hor­
net’s nest of construction problems. The answer:
Cut Risk with Specialized Financial Design

Before you decide to renovate, and with no obligation to you, call in a
consultant from Bank Building Corporation — a 500-strong team that
specializes in modernizing banks (hundreds of our 3,800 financial projects
were remodeling jobs). The result is, we’ve developed specialized financial
building techniques that push your project ahead faster, permit business
as usual during construction, minimize remodeling problems . . . and provide
the progressive, profitable kind of operation you need to win out today.
May we prove this to you, at your convenience?


Says P. C. Davis, president, Citizens
Bank & Trust Co., Quincy, Florida:
“ We wanted to stay downtown, but knew
our building would present real problems.
So we called in Bank Building Corpora­
tion s remodeling experts. Thanks to their
efficient programming, we operated nor­
mally all during construction. What's
more, the bold,progressive plans they crea­
ted have revitalized our entire operation."

Brand-new and timely! R ea d ...

m il








' -f-'' ; '-S' *





T' I f .
1 1


Citizens Bank & Trust Co. expanded into an adjacent building,
now has a dramatic new look o f leadership and efficiency.

"How to sharpen your
bank's competitive edge...and make
more profit while you're doing it"
Analyzes the new competitive situation
facing banks today...and the kind of quarters
you need to win out now. MANY PHOTOS of the
nation's newest banks included. Write today!
Federal Reserve Bank of St. Louis

St. Louis, 1130 Hampton Avenue
A tla n ta • C h ic a g o


D a lla s


New Y o rk

• S a n F ra n c isc o


N o rth ern T ru st In crease
At a recent m eeting of th e board of
directors of The N o rth ern T ru st Com­
pany, Chicago, it w as proposed to in ­
crease th e b a n k ’s capital stock from
$15,000,000 to $18,000,000 th ro u g h a
stock dividend, and th a t su rp lu s be in ­
creased by $4,000,000. Subject to ap­
proval by th e stockholders of th e p ro ­
posed increase in th e n u m b er of
shares, th e directo rs declared a stock
dividend of one additional sh are for
each five sh ares held, payable N ovem ­
ber 30.
Capital funds for th e dividend and
increase in su rp lu s w ill be supplied by
the tra n sfe r of $7,000,000 from u n d i­
vided profits. U pon com pletion of the
stock dividend tran sactio n , capital
stock of th e b ank will total $18,000,000
and su rp lu s w ill be $36,000,000.

sas City, M issouri, w as elected p resi­
den t of th e M ortgage B ankers Associa­
tion of A m erica a t th e A ssociation’s
49th A nnual C onvention here in Chi­
cago early th is m onth. Mr. Thom pson
is also chairm an of th e W estern City
M ortgage Com pany of San Francisco.
Mr. Thom pson has served th e asso­
ciation for m any y ears and has been
a m em ber of its board of governors
since 1956.

.1 i t A i t is p in t i



H eads M ortgage B an k ers
Dale M. Thom pson, president, City
Bond and M ortgage Com pany of K an­

M anufacturers H anover T ru st Com­
pany has announced in New Y ork the
election of E rv in g H. Adler, Jo h n F.
McGillicuddy, Theodore N otides and
Minos A. Zom banakis as vice p resi­
Mr. A dler and Mr. Zom banakis are
w ith the intern atio n al division, Mr.
A dler rep resen tin g th e b an k in A us­
tria, Czechoslovakia, G erm any and
H ungary, and Mr. Zom banakis head­
ing M anufacturers H an o v er’s rep re­
sentative office in Rome.
Mr. McGillicuddy, associated w ith
the n ational division, rep resen ts the
b ank in th e w estern states. Mr. No­
tides is in charge of the 14th S treet

T o O pen T o k y o O ffice

Farm -C ity W eek
The A g ricu ltu ral C om m ittee of The
A m erican B ankers A ssociation is u rg ­
ing b an k ers in ev ery section of the
co untry to join w ith civic organiza­
tions and farm groups in activities
observing F arm -C ity W eek d u rin g th e
period N ovem ber 16 to 22.

New Y ork P r o m o tio n s

D U A L S Y S T E M of b a n k in g is p u b lic ize d
th ro u g h th is A B A d isp la y in sp e c te d b y M.
M onroe K im b rel, le ft, p re s id e n t of th e
A m e ric a n B a n k e rs A s so c ia tio n . W ith M r.
K im b re l a re R a y C heseldine, J r ., e x e c u tiv e
s e c re ta ry of C e n te n n ia l C om m ission a n d
M r. C h e se ld in e ’s s e c re ta ry , M iss G e rald in e

C ontinental Illinois N ational B ank
and T ru st Com pany said in Chicago
th a t it w ill open a rep resen tativ e of­
fice in Tokyo in th e sum m er of 1963.
C o n t i n e n t a l already operates a
branch in London providing full b an k ­
ing services and has announced it w ill
open a rep resen tativ e office in Zurich,
Sw itzerland, early in 1963. The b ank
also has established tw o subsidiary
corporations, h ead q u artered in the
U nited States, to provide additional in ­
tern atio n al banking services for cus­
tom ers.

How Warehouse Plan Can
W ith F ie ld W a re h o u s e R e c e ip ts , b a c k e d b y D o u g la s G u a r d i a n ’s in te g r ity , y o u c a n a n s w e r m a n y c a lls fo r
“ I n s t a n t M o n e y ” t h a t o th e rw is e m ig h t b e d is a p p ro v e d
w i t h o u t t h i s e x tr a p r o te c tio n .
O u r b o o k le t, “ F ie ld W a re h o u s in g o n Y o u r P re m is e s ,” te lls
y o u r c lie n ts h o w w e c a n a s s is t y o u in h e lp in g th e m m o re .
W e h a v e b ro c h u re s t h a t e x p la in t h e m a n y a d v a n t a g e s o f
D o u g la s - G u a r d ia n F ie ld W a re h o u s in g . W e ’ll g la d ly se n d
y o u c o p ie s t h a t m a y p ro v e h e lp fu l in s o lv in g y o u r
le n d in g p ro b le m s .
A d d re s s y o u r in q u irie s t o . . .

D o u g las- G u a rd ia n
P. 0. Box 52978, New Orleans 50, La.


Northwest ern Banker, November, 1962
Federal Reserve Bank of St. Louis





Phone Area Code 504 523-5353




i V' V

>A ""'*

............. ..:'■■I

. . . something else Continental provides as “your hank’s bank
E ven a t night, every night, a full and experienced staff is m aintained here a t C ontinental
to process cash item s. A t the ra te of 1,000 a m inute! M any checks air-m ailed to us in the
afternoon are available funds by th e following m orning. Our correspondents find this speed
a trem endous advantage. You will, too. W hy not let us give you th e full details?




Lock Box H, Chicago 90

1 105I



Member F. D. I. C.
Federal Reserve Bank of St. Louis

Northwestern Banker, November, 1962


»S Ik D E S K
jjiom ttie PuMiafttfi

c jc l a

(H o q s iA

c£ .

Q u h h a n L :

Past Presideyit, Savings Division,
American Bankers Association.
In y o u r 1962 S avings S u rv ey am ong Com m ercial
B anks you em phasized these p o in ts :

(Dsjoui* (RobsüiL <£. TïhjsM l , ÿA..:
Secretary of B anking of P ennsylvania,
H arrisburg.

Banking in the United States has been devel­
oped and grown great under the dual system.
There are now some individuals, including the
new Comptroller of the Currency, who think that
national banks should not be governed by state
laws and should be allowed to establish branches
of national banks even in states where branch
banking is illegal. The Comptroller refers to such
laws as “unhealthy state statutes.” We disagree
with the Comptroller on this and we know you do
also, Mr. Myers.
“The fundamental concept of American bank­
ing” as you have expressed it, “is the independent
private institutions, locally owned and controlled
and deriving their business largely from the people
of their communities and their commercial and
industrial enterprises. The patterns for banking
operations, therefore, must be adapted to the re­
quirements of the several states so that the economy
of each shall have banking services suited to its spe­
cial needs. There is no urgent or compelling need
for nation-wide uniformity. On the contrary, the
diverse requirements of the states make any at­
tempt at such uniformity unrealistic and futile.”
The dual banking system does not exist simply
to protect “state control of branching of national
banks” as the Comptroller has implied.
If the Comptroller wishes to keep the dual sys­
tem completely separate, then he should not be a
member ex officio of the Federal Deposit Insurance
Corporation since it exercises power directly over
state banks.
Let’s not increase any further a centralization of
“power in Washington” over our present dual
banking system which has proven its success in
developing our American economy and which is
still the envy of the world.
N o r t h w e s t e r n Banker, November, 1962
Federal Reserve Bank of St. Louis

1. The importance of savings to commercial
2. The rate of interest being paid by banks of
various size.
3. Over 25 per cent of the banks in the nation
depend on regular savings deposits for 40 per
cent of their total assets.
4. In the $50,000,000 group, 99.6 per cent of the
banks accept regular savings accounts and pay
5. In the $10,000,000 size, only 89.8 per cent ac­
cept interest-bearing savings deposits.
The su rv ey also p resen ts the follow ing d a ta on
(1) D eposit size, (2) A verage size of re g u la r sav­
ings accounts, a n d (3) In te re st ra te p a id :
1. Total Deposit Size:
U n d er $10 m illio n ................... — ....... .
$ 10 to $ 50 m illio n ............ ................ . 15.6
$ 50 to $100 m illio n ............. .................. 7.2
$100 to $500 m illion............................. ~ 7.9
$500 m illion and over............................ .
2. Average Size of Regular Savings Account: Per Cent
U n d er $850 _________ ___ ________
$ 850 to $1,149........................................ 25.5
$1,150 an d over........................................ 45.1
3. Advertised Interest Rate, Jan. 2, 1962:
U n d er 2.0 p e r cen t..... ............................ 12.6
2.0 to 3.0 p e r c e n t.................... ................ 54.7
3.5 p e r cent no-split r a te ........................ 21.6
3.5 p e r cent sp lit r a te ........... ~...........----- 11.1
The su rv ey drew usable responses from 4,060 in ­
su red com m ercial banks re p re se n tin g 64.9 p e r cent
of th e to ta l assets of all in su re d com m ercial banks.
M any sm all banks do n ot accept savings ac­
counts, or p a y a relativ ely low in te re st ra te , p e r­
haps because of no local com petition fro m savings
an d loan associations.
H ow ever, doesn’t th is provide an opening fo r
cred it unions an d fo r loan associations in la rg e r
n e a rb y tow ns to a ttra c t these savings accounts?
The surv ey definitely shows th a t savings deposits
are v ery im p o rta n t to com m ercial banks an d should
be solicited actively an d continuously.


Photograph courtesy the Manhattan Savings Bank, New York C ity

“Getting to know you”
When people get to know their financial insti­
tution, a confidence develops that results in
lasting friendship. Christmas Club a Corpora­
tion helps to promote this friendship and
confidence . . . among people who have demon­
strated that they are ready and willing to learn
how to take care of their money.
Christmas Club members are young people,
old people, middle-aged people, children. You
get to know all of them better because they
make regular weekly Christmas Club visits
and because Christmas Club a Corporation,

through its research activities, keeps you in­
formed about the spending and saving habits
of Christmas Club members. Just as impor­
tant, these people get to know you and the
complete financial services you offer. Profitable
for you, profitable for them.
Won’t you get to know us and the services
we offer? For over fifty years our services have
been helping financial institutions to know
their customers better. Just drop a note and
we will arrange for a staff member in your area
to contact you. No obligation, of course.

Cljristmas Club
a Corporation
230 Park Avenue, New York, N. Y.
Founded by Herbert F. Rawll
Builds C h a r a c t e r • Builds S a v in g s • Builds Business fo r Financial Institu tion
Federal Reserve Bank of St. Louis

Northwestern Banker, November, 7962


S o r s $ 2 5 i t i H u m h i A li v o r i i s i n if
i t if
U t 70io A to r o
H o m is
EORGE W. HEAD, m an ag er of
ad v ertisin g and sales prom otion
for N ational Cash R egister Company,
told Des Moines ad v ertisin g m en last
m onth th a t by 1970 th e U nited States
w ill need an an n u al ex p en d itu re of
$25 billion an n u ally for vario u s ad v er­
tisin g m edia to sell th e n a tio n ’s prod­
ucts and services. He stated th a t the



p resen t $553 billion gross n ational
product figure is expected to h it $800
billion by 1970. A t th e p resen t tim e,
ad v ertisin g ex p en d itu res are $12% bilJUST OFF THE PRESS . . .

lion, b u t th e increase in production
and accom panying com petition from
and in foreign m ark ets w ill req u ire an
intensification of ad v ertisin g efforts to
m ove these goods.
Mr. H ead w as in Des Moines as an
official of the A dvertising F ederation
of A m erica to p resen t a ch a rte r to the
A d v e r t i s i n g R ound Table of Des
Moines, w hich is affiliated w ith the
Creates Demand
Mr. Head, long noted as a national
a u th o rity on th e techniques of ad ver­
tisin g for m ass m erchandising, re­
m inded his audience th a t y ears ago
th e business m anagers in U nited
S tates com panies learned it takes ad­
v e rtisin g to create th e m ass dem and
th a t m akes m ass production possible,
and m ass production is w h at has built
th e dynam ic econom y enjoyed by this
n ation today.
P roof th a t w h at has been accom ­
plished by adv ertisin g in th e U nited
States is an im p o rtan t m erchandising
factor is evidenced in foreign coun­
trie s w h ere n atito n s such as France,
Ita ly and Jap an copied our a d v ertis­
ing technique exactly and used it to

Attention Bankers:

Will Help
Promote Your

For Complete Information
Contact Our
P. O. Box 1119
C in cin n ati 1, Ohio

a n n u a l e d itio n o f th is
a u th o r ita tiv e re v ie w . F o r a
c o m p lim e n ta ry c o p y , w rite :

A Mutual C o m p a n y

Valley National Bank
Special Services Dept.
P. O. Box 71, Phoenix 1, A r il.

Northwestern Banker, November, 1965
Federal Reserve Bank of St. Louis

William C. SafFord, P r e s id e n t

create th e dem and th a t m ade possible
th e postw ar production boom. F rance,
for instance, is spending 11 tim es
m ore today on advertising th an nine
y ears ago.
“And here in th e U nited S tates,”
Mr. H ead said, “we have an o th er pop­
ulation group th e size of F ran ce th a t
has grow n w ith us ju st since th e end
of W orld W ar II. T his 44 m illion
rep resen ts our population expansion
in those 17 years. I t took F ran ce
2,000 years to a tta in th a t size.”
Saves Money for Buyer




Mr. H ead w arn ed his audience th ere
are some w ho still th in k of ad v ertis­
ing as w arm publicity ra th e r th an an
in v estm en t in an effective m erch an d is­
ing media. He em phasized th a t th e
$12% billion spent on ad v ertisin g to ­
day in th e U. S. rep resen ts a savings
of at least $70 billion to th e buying y
public due to th e savings m ade pos­
sible by th e m ass production th a t ad­
v ertising has created. He cited n u ­
m erous exam ples of products th a t to ­
day cost th e sam e or less th a n several V '
decades ago, due to low ering prices
from savings in m ass production.
He w arned, too, against th e hazard ­
ous and m istaken practice of th in k in g
th a t th e ad v ertisin g budget is the
place to s ta rt w hen a recession or
o th er financial squeeze is p u t on a
com pany. “W ho th in k s of tak in g his
foot off th e gas pedal w hen th e going
gets to u gher u p hill?” Mr. H ead asked.
He pointed out th a t P ro cter and Gam­
ble, for instance, stepped up its adver­
tising budget from $110 m illion to
$116 m illion in 1954 w hen recession
th reatened. Some of its com petitors
sought th e cost c u t t i n g m ethod
th ro u g h lessened advertising. The re ­
su lt w as th a t P&G cam e out of it in
an even firm er position as leader th an
Must Tell Own Story
He said ad v ertisin g m en had m ade
a great m istake in p ast decades w hile
developing ad v ertisin g as th e effective
sales tool it has been for th e econ­
omy. T hey have been so busy making advertising w ork, he said, th ey
h av en ’t tak en tim e to tell th e public
w h at an im p o rtan t p a rt it plays in the
economy. The A FA is u n d ertak in g
such a program th is year and national
ads and regional ads w ill tell the story
of advertising and th e p a rt it plays in
th e home, in business, in recreation
and all levels of social and public life.

W ells F argo R etirem en t
Jo h n D. Boden, vice president, re ­
tired from W ells F argo B ank on No­
vem ber 1, concluding a 45-year ban k ­
ing career.











"Why we chose the NCR 315 Computer.”

"A study of our computer needs in­
dicated three important factors to be
• Our current data processing require­
• Future processing requirements to
take care of our constant growth
• The need for a data processing sys­
tem which would provide the ca­
pacity and the flexibility to process
new and expanded services.

"After careful evaluation of several
computer systems av a ila b le , we se­
lected the NCR 315 Computer System.
We believe this system will enable us
to accelerate the processing of all ac­
counting data for our 31 Offices serv­
ing 22 Connecticut communities, and
provide a tool for expanding our serv­
ices to meet the many new demands
upon modern banking.
"Installation of the NCR 315 Computer

System will correspond with a move to
our new headquarters at One Consti­
tution Plaza early next year, and is an­
other step in our constant effort to
provide the highest quality service to
our customers."

C h a irm a n
T h e C o n n e c t ic u t B a n k a n d T ru s t C o m p a n y











The National Cash Register Co. • 1,133 offices in 120 countries • 78 years of helping business save money
Federal Reserve Bank of St. Louis

Northwestern Banker, November, 1962


FPRA Elects Newt Officers
ORE th an 1,500 delegates g ath ­
ered in A tlantic City last m onth
for th e 47th an n u al convention of the
F inancial Public R elations Associa­
B ankers from the N orthw estern
B anker area in attendance agreed th a t
th e d ep artm en tal m eetings w ere p a r­
ticu larly valuable from th e standpoint
of obtaining new ideas th a t can be p u t
to practical use. The m eetings w ere
conducted by recognized au th o rities
in public relations, advertising, busi­
ness developm ent and m erchandising.


F E D E R A L .


Made of the best quality
Kraft paper, so strong it
will not break in a straight
pull. Breaking strength 70
lbs. persq. in.With inverted
and r e v e r s e d f ig u r e s
instantly disclosing value
of package on top edge or

of this issue and identified in the
On The Cover story on this page.
The 1963 FPR A convention will be
held in Los Angeles.

New officers of th e F inancial Public
R elations A ssociation, elected du rin g
th e final day of th e association’s 47th
annual convention at A tlantic City,
N. J. L eft to right, th ey are: P resi­
dent, Ernest G. Gearhart, Jr., vice
president, F irs t N ational B ank of Mi­
ami, Fla.; first vice president, Harold
W. Lewis, vice p resid en t of the F irst
N ational B ank of Chicago; second vice
president, Charles H. Hoeflich, presi­
dent of th e U nion N ational B ank &
T ru st Company, Souderton, Pa.; th ird
vice president, Frank R. Swan, execueive vice presid en t of the City Na­
tional B ank & T ru st Company, Okla­
hom a City; and tre a su re r, Robert A.
Bachle, vice presid en t of the N ational
B oulevard Bank, Chicago.

A u to m a tic D e p o sit P lan
STEEL- STRONG ” is the only Bill Strap which
regularly delivers currency to Federal Reserve
Banks in unbroken packages. In 11 Colors.


n-w r»



They save 25% of time
in m a c h in e f i l l i n g .
Packed f la t but they
“ pop open" with slight
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Due to unique construction,
this Wrapper gives superior
strength, neatness, and a
definite greater protection
to wrapped coins. Too, there
is no clo g g in g of coins.
Ends c r im p e d t i g h t l y .
Symmetrically packed 1,000
to a carton with the crimped
e n d s tu rn e d on e way.

Dept. W

W o rld 's Larg est M an u fa ctu re rs
o f C oin H a n d lin g S u p p lie s

Northwestern Banker, November, 1962
Federal Reserve Bank of St. Louis

H E A D S F P R A — E r n e s t G e a rh a rt, vice
p re s id e n t o f th e F i r s t N a tio n a l B a n k of
M iam i, is show n as he ta k e s o v er as p re s ­
id e n t of th e F in a n c ia l P u b lic R e la tio n s
A sso c ia tio n in A tla n tic C ity.

U sefulness of th e m aterial is indi­
cated by th e titles of th e six m ajor
categories selected by F P R A officials:
com m ercial developm ent, tru s t devel­
opm ent, installm en t credit, savings
and m ortgages, staff relations and
public relations.
P erh ap s the h ighlight of the 47th
an n u al m eeting w as th e School of
M erchandising held each m orning by
Ira M. H ayes, en th u siastic sales official
from th e N ational Cash R egister Com­
pany, D ayton, Ohio. Mr. H ayes p re ­
sented a course in “Sizzlem anship”
and suggested th a t ban k ers w ould be
w ell advised to em ulate th e sales ideas
and im agination th a t created such
m erch an dising em pires as W oolw orth
and A & P. (He m ight have also in ­
cluded the nam e of his own com pany
since it has been one of the o u tstan d ­
ing stories of sales success in A m er­
E rn e s t G. G earhart, Jr., vice presi­
d en t of the F irs t N ational B ank of
Miami. Fla., w as elevated to th e FPR A
presidency. He succeeds Jo h n P. A n­
derson, vice presid en t of th e F irs t
N ational Bank, Passaic County, P a te r­
son, N. J. O ther officers are show n
w ith Mr. G earh art on th e fro n t cover


P ointing up th e dram atic changes in
business accounting techniques since
th e tu rn of th e century, B ank of
A m erica’s m ore th a n 26,000 em ploy­
ees in California began receiving th e ir
salaries recently th ro u g h an au to m at­
ic deposit in th e ir checking accounts.
In stead of a paycheck for the midOctober payday each staff m em ber
w as issued an electronically prepared
statem en t of earnings rep resen tin g
his n et salary deposited into his
checking account. The process elim i­
nates th e n e c e s s i t y of endorsing
checks, depositing them or m aking
arran g em en ts to have them deposited
w hen th ey are on vacation.

NABAC S p ea k er S uggests
S erv ice C harge R e v isio n
B anks today in order to m aintain
efficient and profitable o p e r a t i o n s
m ust sell th e public on realistic serv ­
ice charges.
T hom as E. Sebrell III, president,
C larendon T ru st Company, A rlington,
Va., m ade this statem en t before the
38th annual convention of NABAC,
The A ssociation for B ank A udit, Con­
tro l and O peration, in Bal H orbour,
“W ith rising costs today, banks can­
not continue to ‘give aw ay’ services if
th ey desire to rem ain in the profit
brack et,” Mr. Sebrell said. “Costs, on
a breakdow n basis, can be com pared
w ith th e cost figures of o th er banks of
com parable size, com position and lo­
cales by utilizing th e services of
NABAC and th e ABA.”




T h eir know -how in personnel and tra in ­
ing can help your bank. If personnel policies or em ­
ployee train in g problem s are puzzling you, a visit w ith these ex­
perienced specialists m ay help you find th e answ ers. T his is one
w a y w e help our correspondents. W e’d like to help y o u !


O rganized as N . W. Harris & Co. 1882— Incorporated 1907— M em ber Federal R eserve S y s te m . ..F ed eral D eposit Insurance C<

Federal Reserve Bank of St. Louis

Northwestern Banker, November, 1962


M ix/w n il

O z a r ls

ZARK A IR L IN E S in au g u rated
service over its new ro u te be­
tw een Sioux Falls, Sioux City, W ater­
loo and Chicago last m onth, replacing
Braniff In te rn a tio n a l A irw ays.
The initial service by O zark p ro ­
vides a non-stop early m orning flight
betw een Sioux City and Chicago origi­
n atin g in Sioux Falls, and an a fte r­
noon one-stop flight to Chicago via
W aterloo also orig in atin g in Sioux
Falls. All flights u n d e r th e new au ­
th o rity are being operated w ith Fairchild F-27s.
F ly in g tim e from Sioux City n o n ­
stop to Chicago is one h o u r 53 min-


u tes and on the flight w ith a stop at
W aterloo, tw o hours and nine m in­

C en ten n ial Y ear P la n s
To aid banks in carry in g on activi­
ties a t th e com m unity level during
th e C entennial year of com m ercial
b anking in 1963, th e C entennial Com­
m ission of The A m erican B ankers
A ssociation has available for b ank use
a new booklet en titled “100 W ays
Your B ank Can C elebrate a C entury
of Com m ercial B anking.”
The booklet w ill be distrib u ted to
banks in early N ovem ber as a p a rt

of the C entennial Inform ation Kit.
T he com m ission is also m aking
available a brochure entitled “How
B anks Can H elp.” It is to be distrib ­
uted by banks to th eir custom ers. It
is a recital of “hum an in te re st” facts
and stories about banks and people,
telling about the expanding services
provided by banks over th e p ast 100
years. ABA m em ber banks can p u r­
chase copies for 10 cents each.


N ew St. L ou is D irecto rs


You’ve surely had the question put to you
by prospective trust department clients.
Aware of your necessarily small staff and
limited investment research facilities, the prospects are lukewarm . . .
hesitant . . . doubtful. They want to know: “How are you equipped
investment-wise to handle my account efficiently and prudently?”
Many community banks find this the toughest question of all; one
that is difficult to answer convincingly.
But not members of the Studley, Shupert Trust Investment Council!
All they do is hand the prospect a copy of the leaflet entitled “Let’s Take
a Look Behind the Scenes of Our Trust Department.” There—in easy-tounderstand language—the prospect gets a concise, doubt-removing descrip­
tion of the breadth, depth and quality of investment experience which the
bank provides him by virtue of its Council Membership.
Like to see the leaflet? Like to know the details of Council Membership
and all that it offers you and your clients? Like to know why community
banks from coast to coast are enthusiastic Council Members . . . why
many of them have been subscribers for 5, 10, 15 years . . . ever since
the Council was founded?
We’ll gladly send you full information free of obligation. Write now.

1617 P E N N S Y L V A N IA B L V D ., P H IL A D E L P H IA
155 B E R K E L E Y

Northwestern Banker, November, 1962
Federal Reserve Bank of St. Louis


3, PA.

16, M A S S .


W in s N atio n a l C ontest
Miss Susan E rickson, a teller a t the
Citizens B ank of Corvallis, Ore., has
been elected Miss D rive-In Teller for
1963 by a n atio n ­
al vote of b an k ­
ers in th e fifth
an n u al c o n t e s t ,
sponsored by The
M osler Safe Company.
M iss E rickson,
w h o has b e e n
a w a r d e d an allexpense vacation
cruise to B erm u­
da as g rand prize
in th e contest, w ill reign for a year as
Miss D rive-In Teller and w ill appear
at v arious banking functions th ro u g h ­
out th e year.



Two new m em bers w ere elected to
th e advisory board of F irs t N ational
B ank in St. Louis recently, according
to Jam es P. Hickok, chairm an.
T hey w ere Louis W. Menk, presi­
dent of th e St. Louis-San Francisco
R ailw ay Company, and W. Ashley
Gray, Jr., executive vice p resid en t of
G eneral Steel In d u stries, Inc., G ranite
City, 111.





N ew A d C am paign
A positive new national advertising
cam paign w as initiated last m onth by
th e F o u ndation for Com m ercial Banks.
F ea tu rin g illu stratio n s by the worldfam ous cartoonist, R obert Osborn, the
ad v ertisin g in behalf of th e com m er­
cial b anking in d u stry w ill appear in
seven national m agazines.
E ach ad v ertisem ent w ill be exposed
to 60 m illion people w ho represent
b anking’s best prospects and custom ­

November 8-9, Mid-Continent Trust
Conference, 31st Annual Meeting,
Hotel Drake, Chicago.
November 12-13, National Agricultural
Credit Conference, 11th Annual
Conference, Sheraton - Fontenelle
Hotel, Omaha.


Says John A . Stewart:

“Chase Manhattan’s Fed Funds Service? Excellent!”
On a recent visit to Chase Manhattan’s
new head office, John A. Stewart,
President, Second National Bank
of Saginaw, Michigan, particularly
wanted to see the Government Trad­
ing Desk. He and Chase Manhattan’s
J. Michael Carter, in charge of Fed­
eral Funds trading, were watching the
activity as we came along. Asked if he
used this correspondent service, Mr.
Stewart replied :
“Frequently . .. and I can tell you in
this business you people are unique . . .
putting emphasis where it belongs— on
excellent service. . . whatever the effect
on Chase Manhattan's own cash posi­
tion ... Say, look at those orders move!"

For John Stewart, and for hundreds
of correspondent bankers who have
seen our new head office facilities, the
Government Trading Desk is indeed
a fascinating sight. Yet, busy and ex­
citing as Federal Funds trading is
during every minute of the short trad­
ing day, there is much that doesn’t
meet the eye. For example, the differ­
ence in Chase Manhattan’s basic
attitude—of “ service first” to every
correspondent bank. It is a difference
that can only be experienced . . . one
that goes far to explain why Chase
Manhattan serves half of all U. S.
banks with a NewYork correspondent.
If your bank has any Federal

Funds or Reserve Position problems,
Chase Manhattan’s Mike Carter will
help you.

C H A R TER ED IN 1799

1 Chase Manhattan Plaza
New York 15, New York
Member Federal Deposit Insurance Corporation

Northwestern Banker, November, 1962
Federal Reserve Bank of St. Louis


IHvintili I n veils New Unta Pae
S hort T e rm
C om m ercial
P aper

IVe offer
fo r sale

H E first B usiness and B anking
E q u ip m en t Show held by Diebold,
Incorporated, in th e dow ntow n New
York City area, attracted m ore th an
2,000 bankers, brokers, insurance and
m anagem ent executives to the Down­
tow n A thletic Club d uring its threeday session, according to R aym ond
Koontz, president, Diebold, Incorpo­


M axw ell H . K alb
Maxwell H. Kalb, 56, vice president
of the M anufacturers H anover T ru st
Company, New York, died last m onth.
A ssociated w ith th e b a n k ’s b ranch
adm in istratio n departm ent, Mr. Kalb
directed the prom otion and develop­
m ent of th e b an k ’s retail banking

T o k y o O ffice O p en s
The F irs t N ational B ank of Chicago
has form ally opened its Tokyo office.
In Jap an for the occasion w as Ho­
m er J. L ivingston, chairm an; W alter
M. H eym ann, vice chairm an, and H er­
b e rt V. Prochnow , president.
D. L indstedt and R. D. F linn, form erely in th e in tern atio n al banking
departm ent, w ill be in charge of the

the notes of
com panies

F ree C heck S erv ice
Effective a t once, LaSalle N ational
B ank in Chicago is offering checking
account service, absolutely free of the
custom ary service charges, to anyone
w ho is 65 or over.

Admiral Credit Corporation
C h ica g o , Illin o is

Approved Finance, Inc.
C olu m bu s, O hio

N ew Y ork P r o m o tio n s

The Bankers Investment Company
H u tc h in so n , K a n sa s

Civic Finance Corporation
M ilw a u k ee , W isco n sin

Commercial Securities Co., Inc.
B a to n R o u g e , L o u isia n a

Continental Investment Corp.
M e m p h is, T e n n essee

Crown Finance Corporation
S t. L o u is, M isso u ri

Guardian Discount Company
M em p h is, T e n n essee

Laurentide Finance Corporation
S a n F ra n c isc o , C a lifo rn ia

Murdock Acceptance Corporation
M e m p h is , T e n n essee

Northern Illinois Corporation
D e K a lb , Illin o is

Strevell-Paterson Finance Corp.
S a lt L a k e C ity , U ta h

Winter & Hirsch, Incorporated
C h icago, Illin o is

Prevailing 6 month rate:
3 x/i - 3 %% discount
subject to periodic fluctuation


RAndolph 6-5432

Wire FAX Chicago

Northwest ern Banker, November, 1962
Federal Reserve Bank of St. Louis

N E W D A T A -PA C show n b y K a th y M c K a y
fo r D iebold, In c ., a t N e w Y o rk show can
be u se d in c o m p u te r d e p a rtm e n ts a n d w ith
p u n c h e d c a rd e q u ip m e n t in b a n k s a n d
o th e r fin an c ia l in s titu tio n s . T he u n it is
a b le to a cco m m o d ate a n y a c c o u n tin g cycle.

“W e’ve found th a t th e exhibition of
our la te st m achines and system s
equip m ent in the convenient proxim ­
ity of th e dow ntow n area of New
York City offered busy executives an
o p p o rtu n ity to quickly review the
Diebold lines,” said Mr. Koontz.
Diebold used the occasion to unveil
its new ly designed Data Pac, w hich
provides a fixed com partm ent Data
P rocessing Aid and is able to accom ­
m odate any accounting cycle.
“D ata Pac solves a k n o tty problem
for m any of those com panies involved
in using com puters and punched card
equipm ent. The Data Pac allows op­
era tin g personnel to quickly m ove a
p a rtic u la r billing cycle to th e com­
p u te r or th e so rter and, w hen com­
pleted, to move it aw ay and store it
for th e nex t billing cycle,” said the
Diebold executive.
Also on view at the Diebold B usi­
ness and B anking E q u ip m en t Show
w ere Diebold Super E lev ato r Files;
Pow er Files; M agnetic In k C haracter
R e c o g n i t i o n equipm ent; D ie b o ld
A lpha-N um eric System files, and the
com pany’s Check Guide equipm ent.

W illiam H. Moore, chairm an of
B ankers T ru st Company, New York,
has announced th e ap p ointm ent of
th ree vice presidents. Jo h n A. Allen,
R obert K. H ynes and W illiam C. Ladd
have been nam ed vice presidents in
th e banking operations, credit anatysis and investigation, and in tern atio n ­
al banking d ep artm en ts respectively.

N ew C orresp on d en t Man
Jam es E. Brown, head of th e banks
and ban k ers departm ent, M ercantile
T ru st Company, St. Louis, has in tro ­
duced a new m em ber to his d ep art­
m ent, Jack J. Scott, a ssistan t cashier,
w ho w ill serve as th e correspondent
b ank ag ricu ltu ral representative.
He has been assistan t tru s t officer
and m anager of the F a rm Service De­
p a rtm e n t for th e Ohio V alley N ational
B ank of H enderson, Ky.

In v estm en t C o n ven tion
The 51st A nnual C onvention of the
In v estm en t B ankers A ssociation of
A m erica w ill be held N ovem ber 25-30
in Hollywood, Fla., announced C urtis
H. Bingham , IB A p resid en t and p resi­
dent of B ingham , W alter & H urry,
Inc., Los Angeles. C onvention ses­
sions w ill be held a t th e Hollywood
Beach H otel and delegates w ill be ac­
com m odated th e re and also a t The
Diplom at, a n earby hotel in Holly­

C U M M IN S ® ŒDtP

S Y S T E M • O D P ’S B A S I C

0 0

TO BANK BY1/3 RD TO 1/2 •



m m m m m \L n

s r ,..
' OP E R A T OR S S A L A R Y hi # ♦ #
C O S T S L E S S THAN 1/4TH AS M U C H ! • • • •

Federal Reserve Bank of St. Louis

Northwestern Banker, November, 1962



Mm m

• Our ARO UN D -TH E
CLO CK Correspondent
Service is Fast, Effic ie n t and F rie n d ly . J




We would consider it
an honor and privilege
to serve you.


Federal Reserve Bank of St. Louis





Northwestern Banker, November, 1962
Federal Reserve Bank of St. Louis


1‘ l í i r

Keports A sset twain

SSETS of th e in su red com m ercial
banks increased 9 p er cent to
$275 billion d u rin g th e y e a r ended
Ju n e 30, 1962. Of th e $22 billion
grow th d u rin g th e year, $11 billion
w as in loans, n e a rly $8 billion in secu­
rities, and $3 billion in cash balances.
D eposits of i n s u r e d com m ercial
banks to taled $245 billion at mid-1962.
Over half of th e increase d u rin g th e
preceding y e a r w as in tim e deposits
(of business and individuals) and sav­
ings deposits w hich to g eth er rose 16
per cent to $83 billion. D em and de­
posits of business and individuals in ­
creased 3 p er cen t to $111 billion.
Loans to taled $129 billion at mid1962. Com m ercial and in d u strial loans
advanced $3 billion to $46 billion
du rin g th e year. R eal estate loans
w ere up alm ost $3 billion to $32 bil­
lion. Consum er-type loans to taled $29
billion, an increase of $2 billion. Loans
to ban k s and o th er financial in stitu ­
tions increased from $7 billion to al­
m ost $9 billion.


T alcott E arn in gs U p
Jam es Talcott, Inc., has rep o rted n et
incom e rose 16 p er cent to a new high
d u rin g th e n ine m onths ended Sep­
tem ber 30, 1962.
H erb e rt R. Silverm an, p resid en t of

th e m ajor in d u strial finance com pany,
said consolidated n e t earnings for the
first n ine m onths of th is year w ere
$4,397,524 as com pared w ith $3,804,637
for th e com parable 1961 period.

B o f M A p p o in ts
R onald J. A llen has been appointed
an agent a t th e
B ank of M ontre­
al’s New Y o r k
Mr. A llen m oves
to th e post from
the b a n k ’s head
office in M ontreal
w h e r e he has
been su p erin ten d ­
en t of th e busi­
ness developm ent
division for the
p ast tw o and one-half years.

life including the m eeting w hich re ­
sulted in th e b a n k ’s founding. The
draw ings, done in unique pen and ink
style w ith a w ater color w ash, carry
out the historic quality of the them e.


T o H ead In v e stm e n ts
M anufacturers H anover T ru st Com­
pany, New York, announced th e elec­
tion of A ndrew Scharps as vice p resi­
den t and tre a su re r, effective Decem ­
b er 1, w hen he w ill succeed Craig S.
B artle tt w ho re tire s on th a t date.
Mr. Scharps joined th e ban k in 1926. y
He w as nam ed an assistan t secretary
in 1938, a ssistan t vice p resident in
1944 and vice presid en t in 1952.
P rio r to th e m erger of M anufactur­
ers T ru st Com pany w ith The H anover
B ank in 1961, Mr. Scharps headed
M anufacturers T ru s t’s portfolio de­
p artm en t. As of D ecem ber 1 he will
have charge of th e m erged b a n k ’s \
in v estm en t portfolio departm ent.

H o n o r C hicago B on d Man
U n u su a l 1 9 6 3 C alendar
The B ank of New York, founded in
1784, is using the life sto ry of Alex­
an d er H am ilton, one of its principal
founders, as the subject of its 1962-63
calendar. O riginal draw ings by E liza­
b eth F raser, com m issioned by the
b an k especially for this purpose, show
im p o rtan t events in Mr. H am ilto n ’s

George B. W endt, vice presid en t in
charge of th e bond d ep artm en t of th e
F irs t N ational B ank of Chicago, w as
appointed chairm an of th e M unicipal
Securities Com m ittee of th e In v e st­
m en t B ankers A ssociation of A m erica
to serve th e rem ain d er of th e u nex­
pired term of C ushm an McGee w ho
died in A ugust.

W arm W elcom e

Since 1907
A Multiple-Line, Non-Assessabie Company,
we write only through local agents.
Writing a tuli line of fire and casualty insurance,
giving our assureds the best possible protection,
best of service at a reasonable cost as sound
business would permit, has brought constant
growth to Western Mutual Insurance Company.
Agency inquiries welcomed.

W estern M u tu al
Insurance Co.
616 10th S t r e e t
 Banker, Novem ber, 7962
Federal Reserve Bank of St. Louis

Des Moines 8, Iow a

M A E H A B !!— T he sm iles on th e fa c e s of
Dr. M oham ed M. A bu Shadi ( l e f t ) , c h a ir ­
m a n a n d m a n a g in g d ire c to r o f th e N a ­
tio n a l B a n k of E g y p t, a n d M ounir H em aya
( c e n te r), m a n a g e r o f th e F o re ig n D e p a rt­
m e n t o f th e sam e b a n k , a lo n g w ith th e
h a n d sh a k e e x te n d e d b y P aul P arker B a n k
of A m e ric a vice p re s id e n t a n d M id d le E a s t
R e p re s e n ta tiv e , do a w a y w ith th e need
fo r tra n s la tio n .
O bviously, “M a rlia b ”
m eans w elcom e
F u r th e r p ro o f o f th e w a rm th of th e
w elcom e is th e U n ite d A ra b R e p u b lic flag
above th e m en, flow n a t th e b a n k ’s S an
F ra n c is c o H e a d Office in h o n o r of th e v is it
b y th e C airo b a n k e x e c u tiv e s fo llo w in g
a tte n d a n c e a t th e I n te r n a tio n a l M o n e ta ry
F u n d m e e tin g in W a sh in g to n , D. C. D u r­
in g th e ir C a lifo rn ia s ta y , th e y c o n fe rre d
w ith B a n k of A m e ric a officials on th e d e ­
v e lo p m e n t a n d p ro m o tio n o f E g y p t’s com ­
m erce, a n d v is ite d w ith th e b a n k ’s p re s i­
d e n t, S. C lark B eise.




O n the s tr e e ts o f b a n k in g a n d c o m m e rc e
a ll over the n a tio n , th e Ir v in g is k n o w n f o r
its co m p lete p r o fe s s io n a l s e rv ic e s
a s the b a n k for b a n k e r s a n d b u s in e s s m e n .
I r v in g

T r u s t

C o m p a n y

One W all Street, New York ij, N. Y.
Capital Funds over $155,000,000
Total Assets over $1,750,000,000
G e o r g e A. M u r p h y , C h airm an of the Board
W il l ia m E. P e t e r s e n , President
N ational D ivision—H . M i l l e r L a w d e r , Senior V ice President in C harge
Federal Reserve Bank of St. Louis

Northwestern Banker, November, 1962



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pioneer and developer of TV banking.
The Mosler Safe Company
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New York 22, N. Y.
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A D D R E S S __________________________________________________________________________________ — ------------C IT Y ._____________________________________________ _ Z O N E _________ S T A T E ________________________________



Northwestern Banker, November, 1962
Federal Reserve Bank of St. Louis



tion called for by the proposed regula­
tion. This is inform ation readily avail­
able to th e b ank from its records, and
th e re p o rt m ay be inexpensive, such
as in m im eograph form. The rep o rt
should contain such item s as a balance
sh eet at th e close of th e calendar year,
reconciliation of capital funds for the
period, and profit and loss statem en ts
com pared to the preceding year.

• la m e s
C o m p t r o lle r

J .

Solicitation of proxies. The pro­
posed proxy regulation seeks to pro­
vide th e sim plest and m ost feasible
procedure for m eeting stockholders’
needs, w ith o u t im posing u ndue b u r­
dens on banks. It applies only to
banks w hich s o l i c i t proxies from

S a x o n

o f C u r r e n c y
P ro p o s e s

H E long aw aited recom m enda­
tions of th e C om ptroller of th e
C urrency, Jam es J. Saxon, w ere
revealed ju s t p rio r to his platfo rm ap­
pearance a t th e A.B.A. an n u al conven­
t i o n in A tlantic City. The list of 84
proposals em bodied m a tte rs ran g in g
from th e contro v ersial n atio n al b ank
b ran ch in g provision to one th a t w ould
sim plify th e issuance of stock divi­
A t th a t tim e it w as his expressed
desire to begin im m ediately to tra n s ­
late som e of th ese proposals into effec­
tive regulations. A ccordingly, on Oc­
tober 16, 1962, he m ailed to all national
banks a copy of changes in regu latio n s
he proposes to p u t into effect on
N ovem ber 20, 1962, and F e b ru a ry 1,
1963. In an accom panying le tte r to
presid en ts of all n atio n al banks, Comp­
tro ller Saxon said in part:
“T hese regulations, dealing w ith
certain of th e co rp o rate practices and
procedures of n atio n al b an k in g asso­
ciations, m e rit y o u r careful considera­
“Our p rim a ry aim in th e d raftin g of
these proposed reg u latio n s has been
to provide th e m axim um freedom of
action for n atio n al b an k s th a t is con­
siste n t w ith th e ir obligations to th e ir
stockholders and to th e com m unities
w hich th e y serve.
“. . . we th erefo re m ost cordially in ­
v ite and w elcom e com m ents of all n a ­
tional b an k s and o th er in terested p e r­
sons on th ese proposed reg u latio n s.”
T he C om ptroller’s le tte r contained a
su m m ary of th e seven reg u latio n s th a t
w ould be changed, along w ith a copy
of th e official and detailed w ording of
each p art. S h o rtly a fte r sending th e
letter, Mr. Saxon addressed th e 76th


Federal Reserve Bank of St. Louis


an n u al convention of th e Iow a B ank­
ers A ssociation in Des Moines, and dis­
cussed th e seven proposed changes in
th e course of his text.
Briefly, th e substance of th e p ro ­
posed reg ulations are sum m arized as
Appointment of Directors. To
avoid th e necessity of having a special
m eeting of stockholders and atte n d a n t
expense, or th e necessity of th e resig­
n atio n of an incum bent director, stock­
holders w ould be p erm itted to a u th o r­
ize th e board of directors to increase
th e n u m b er of directors of th e ban k
and appoint such persons to serve u n ­
til th e n ext m eeting of stockholders.
T his w ould be lim ited to n ot m ore
th a n th re e nor m ore th a n one-third of
th e existing n u m ber of directors,
w hichever shall be the lesser. P a rt
7.5 (a), (b), (c).
Pre-emptive rights. E x istin g p a r­
ag rap h 6110 of the Digest of Opinions
published in 1960 states th a t all stock­
holders of a n ational b ank are entitled,
in preference to any o th er persons, to
th e o p p o rtu n ity to p u rchase additional
stock re su ltin g from an increase in
th e b a n k ’s capital, in p roportion to
th e n u m b er of shares held by th em re ­
spectively. By m ajo rity vote of hold­
ers of vo ting shares, a b ank could
am end its articles to m odify or elim i­
n ate th ese pre-em ptive rights. P a rt
7.6 (a), (b).
Annual report to stockholders.
E v e ry n atio n al b ank shall fu rn ish its
stockholders w ith an annual re p o rt
co ntaining a t least m inim al inform a-

stockholders. If proxies are solicited,
b u t only for th e election of directors,
only Section A in th e detailed regula­
tion shall be applicable. T his sets
fo rth th e inform ation th a t m u st be
given to each stockholder w hen solicit­
ing a proxy—nam es of directors, nom ­
inees, shares of stock held, w h eth er
cum ulative voting is p erm itted and
how such voting shall be done. If
fu rth e r m atters, such as voting on p en­
sion plans, profit-sharing or o th er such
proposals shall be th e basis for proxy
solicitation, fu rth e r details m u st be
com plied w ith in th is regulation. 11.1;
11.2 (a), (b); 11.3(a), (b), (c), (d); 11.4
(a), (b); 11.5; 11.6.
Ownership of capital securities.
E v ery n ational b ank w ill be required,
w ith in 10 days of date of reg ulation
becom ing effective, to file w ith th e
C om ptroller a statem en t containing
th e nam es and addresses of, and
am ount of securities (bank stock) held
by each ow ner of record of m ore th a n
10 per cent of an y class of o u tstan d ­
ing capital securities issued by th e
bank. Also, the b an k shall file sim ilar
inform ation if a t an y la te r date an y
person acquires 10 p er cent or m ore
of th e b a n k ’s capital securities. Also,
if any p erso n ’s ow nership of stock in­
creases or decreases by 5 p er cent,
notice shall be filed w ith th e Comp­
troller. If th e b an k has reason to
believe th a t som eone o th er th a n th e
ow ner of record actually is th e bene­
ficial ow ner, th is inform ation also
shall be filed. “P erso n ” shall n o t be


(T u rn to page 42, please)
Northwestern Banker, November, 1962

H E C ongress has ju s t com pleted th e en actm ent of
a ta x bill. I t ’s long, 390 pages. I shall give you a
rep o rt on the provisions of th a t bill.
T he bill th a t th e Congress ju s t passed w as th e re su lt of
a req u e st for legislation by th e P resid en t of th e U nited
States to th e Congress. D etails of th e P re sid e n t’s re ­
quest w ere spelled out by th e S ecretary of th e T reasu ry
and his aides.




S u m m ary


The Í9G2 Tax

) W ithholding Tax—A m ong th e provisions of tax

law req u ested by th e A d m in istratio n w as one
for th e w ith h o ld in g of taxes on in te re st and dividends.
T his created a w ide in te re st n o t only of bankers, savings
and loan associations, in su ran ce com panies, b u t am ong
the ra n k and file of our people.
T he Congress tu rn e d dow n th is re q u e st and, I think,
rig h tfu lly so. I t w ould be costly and th e re are o th er w ays
of reach in g w h atev er loss of rev en u e th a t m ig h t now oc­
cur by reason of th e failu re to re p o rt th e receip t of in te r­
est and dividends by taxpay ers. I have nev er felt th a t
th e loss from th is failure to re p o rt w as n early as great as
th e T re a su ry contends. The m ail on w ithholding of taxes
on dividends and in te re st w as v e ry heavy from all over
th e U nited States.
In rejectin g th e w ith h o ld in g ta x provision th e Senate
adopted an am en d m en t proposed by C hairm an Byrd. The
B yrd am en d m en t in lieu of w ith h o ld in g req u ires th a t th e
payor of in terest, dividends, and patro n ag e dividends
shall re p o rt to th e B u reau of In te rn a l R evenue all pay­
m ents of $10 or m ore. T he payor also is req u ired to give
a statem en t to th e payee inform ing him of th e am ount of
interest, dividends, or patro n ag e dividends th a t he has
received, if over $10. F a ilu re to do th is subjects th e
payor to a penalty. A t th e p re se n t tim e, in te re st of less
th an $600 does not have to be reported, n o r are p atronage
dividends of less th a n $100 reported.
A year ago th e Congress passed an act w hich, in m y
m ind, w ill m aterially lessen any loss th a t m ig ht now
exist due to failu re to re p o rt in te re st and dividend in ­
come. I refer to th e proposal to assign to each federal
tax p ay er a file num ber. F o r those individuals w ho have
a social secu rity n um ber, th e n u m b er for th e ir tax file
w ill be th e same. T he o th ers w ill be assigned a num ber.
This w ill m ake it possible for th e In te rn a l R evenue Serv­
ice to install m echanized eq uipm ent in h an d lin g tax re ­

a ) Investm ent Credit—One of th e v e ry controver_
sial item s in th e P re sid e n t’s ta x p ro g ram w as
the in v estm en t credit. I t passed. The objective of the
in v estm en t cred it is to sp u r our economy. I t is to give
a tax cred it to th e individual or tax p a y e r th a t m akes an
in v estm en t in new m achines and equipm ent. I t covers
all capital goods o th er th a n buildings and livestock. (A
fu rth e r revision w as announced last m o n th a fte r Senator
C urtis m ade th is talk.)
T his in v estm en t cred it provision m eans th a t a 7 per
cent ta x cred it is given on th e p u rch ase of all capital
goods since J a n u a ry 1, 1962. In th e case of public u tili­
ties it is 3 p er cent ra th e r th a n 7 p er cent.
T his m eans th a t if a tax p a y e r buys a m achine for
$3,000, he can deduct 7 p er cent of $3,000, or $210, from
th e am o u n t of tax th a t he w ill owe for th e year. T his is
n ot su b tracted from his income, b u t from his tax. A ctu­
ally, a ta x cred it is no different th a n hav in g th e tax ­
pay er m ail in th e full am o u n t of his tax and having the
Northwestern Banker, November, 7962
Federal Reserve Bank of St. Louis

U n ite d S tates S e n a to r
f r o m N e b ra sk a


governm ent m ail back a direct subsidy check to him.
W hen this m achine is depreciated u n d er the rules you
s ta rt not w ith a basis of $3,000 b u t ra th e r a basis of $2,790,
w hich is th e price paid less th e tax credit.
I did n o t su p p o rt the in v estm en t credit proposal. I do
n ot believe th a t it, standing alone, w ill necessarily spur
our economy. I dislike th e use of tax credits, because
th ey w hittle aw ay th e revenue. I p refer a m ore liberal­
ized system of depreciation. In fact, I th in k th a t th e ta x ­
payer should have w ide latitu d e in following his best
judgm ent, and the best accounting practices available to
his business, in determ ining over how long a period of
tim e he should w rite off the cost of equipm ent.
The in v estm en t credit is d iscrim in ato ry in th a t it w ill
be to th e disadvantage of th e concern th a t p rior to 1962
had already p u rchased new m achines, or expanded its
plant, and it w ill discrim inate against a business concern
th a t cannot and should not u n d ertak e an expansion or
m odernization at th is tim e. I t discrim inates against the
individual tax p ay er or corporate tax p ay er th a t cannot
buy new equipm ent.

^fTjP) Expense Accounts—W e have heard a great deal
about abuses of expense accounts. No doubt
some abuses have existed. T he h o rro r exam ples of abuses
perh ap s rep resen ted isolated cases. T here is nothing
w rong w ith th e w ording of th e p resen t sta tu te in regard
to req u irin g expenses to be o rd inary and necessary before
th e y can be deducted. T here w as one court decision
w hich p erh ap s called for some new legislation in the w ay
of g reater su b stan tiatio n of an item claim ed as a business
deduction, b u t otherw ise it is a m a tte r of enforcem ent.
H ow ever, th e ad m in istratio n asked for legislation deny­
ing a deduction to a tax p ay er for all e n tertain m en t and
gifts. T he Congress did rew rite th e p resen t statute.
If a taxpayer, u n d er th is new law, w ishes to deduct the
cost of e n tertain in g custom ers, he m u st show th a t the en­
te rta in m e n t w as n o t only for good w ill b u t th a t business
w as actually discussed and prom oted at th e tim e of th e
en tertain m en t. T his m ay m ean th a t the en tertain m en t





Revision R ill
A c o n d e n sa tio n o f th e address
d e liv e r e d b y S en a to r C urtis b e fo r e
th e 6 5 th A n n u al C on v en tio n o f th e
N eb rask a B a n k ers A sso cia tio n


of a b a n k ’s custom ers a t a luncheon before a football
gam e w ill have to include business discussion to be de­
In o rd er for an item of e n te rta in m e n t to be deductible
it m u st show th e am o u n t spent, th e tim e and place, the
business purpose, th e business relatio n sh ip of th e parties
en tertain ed , and th a t b u siness w as discussed.
In th e case of gifts given by the ta x p a y e r to his cus­
tom ers th e re is a lim it established. No gift w ill be de­
ductible for a g re a te r sum th a n $25 p er y e a r p er donee.
H ow ever, item s costing less th a n $4 and given g enerally
to all of th e ta x p a y e r’s cu stom ers are n o t to be included
in th e $25. T his w ould m ean th a t a tax p a y e r could buy
calendars w ith his ad v ertisin g thereon, or o th er such
item s and deduct th e cost th ereo f en bloc and it w ould
not be a p a rt of th is $25 com putation p er y ear p er donee.

paid th e taxes on the dividends. T h at rule is changed for
all subsidiary corporations except export trad e corpora­
tions selling goods m an u factu red in th e U nited States.
U nder th is new law, if an A m erican subsidiary is en­
gaged in m an u factu rin g in F rance and sells its products
th ro u g h o u t E urope th ro u g h an o th er subsidiary located in
Sw itzerland, th e incom e earned by the foreign subsidiary
is taxable to th e p aren t corporation in th is co untry even
though it never comes back to th is country. T here is
one escape from the p aym ent of th is new tax by the
A m erican p a re n t com pany w hich lessens the U. S. tax to
the ex ten t th a t th e earnings are re tu rn e d to this country.
If as m uch as 47 percent of th e foreign earnings are re ­
tu rn e d to th is co u n try th en th is new section does not
apply. O therw ise, you really have a tax im posed upon
th e stockholder, th a t is the A m erican p aren t corporation,
on the earnings of th e foreign corporation th a t m ay never
be received.
This violates the ru le th a t you m u st have jurisdiction
to tax.
W henever an A m erican corporation establishes a sub­
sidiary in a foreign land, w h eth er it be Brazil, E ngland
or France, it increases our exports to th a t p art. By the
acquaintance b u ilt up in th e foreign land and th e learn ­
ing of th e language, a beach head is established for the
sale of m ore A m erican products. W e send m achinery,
raw m aterials, replacem ent p arts and com ponent p arts
to th e foreign subsidiary. I t adds to jobs in this country.
An additional tax b urden on th e ir operation w ill actually
lessen the u ltim ate profit com ing to th is co u n try and the
revenue to th e T reasury.
It will, in m y opinion, lessen our exports, and it gives
the A m erican com pany o perating abroad a disadvantage
w ith its com petitors. F o r instance, if th ere is to be a fac­
to ry established in G uatem ala, th e A m erican com pany
should have th e sam e tax b urden in th a t foreign country
as does th e G erm an firm, or th e B ritish or the Jap anese
firm. W e should n ot a ttem p t to tax foreign earned in ­
come u n til it is b ro u g h t into this country.
This p a rt of th e tax bill violates all p ast practices. I t is
indeed cum bersom e, com plicated and w as enacted over
th e p ro tests of m ost businesses engaged in foreign tra n s ­
actions. It m ay tu rn out as the u n d istrib u ted profits tax
of th e early 30’s.

w h a t m ay be charged off in th e w ay of trav el
expense by a taxpayer. If a law y er or a doctor, or any
o th er tax p a y e r goes to a professional m eeting and re tu rn s
w ith in one w eek, th e en tire am o u n t of his tra v e l is de­
ductible if he w en t for a business purpose. If he stayed
beyond a w eek and m ore th a n 25 p e r cen t of his tim e w as
sp en t n o t for b u siness b u t for p ersonal pleasure, th en
he could n o t deduct th e e n tire cost of his travel, but
w ould have to pro-rate it.

T ) Patronage Dividends—A nother proposal in the
_*■ W_ tax bill is th e tre a tm e n t of patronage dividends
of cooperatives. At th e p resen t tim e th e rev en u e re ­
ceived from this source is estim ated at about $1 or $2
million. U nder th e new proposal it is expected to in ­
crease to about $40 m illion.
W hen a cooperative pays a patronage dividend it is
now taxable to th e patrons. Some of these dividends are
not paid in cash, b u t are paid in some form of scrip t and
th e m oney is held by th e cooperative. U nder th e new
law, every patronage dividend m ust be paid to th e ex­
te n t of a t least 20 p er cent in cash. The endorsem ent of
this check w ill co n stitu te an agreem ent for th e p atro n of
the cooperative to rep o rt his full p atronage dividend as
income to th e patron. If the p atro n fails to agree to re ­
p o rt it in this m an n er th e en tire am ount is taxed to the
cooperative at corporate rates.
Savings and Loan Tax—T here w ill be a sizable
I T increase in th e am ount of tax paid by savings
and loan associations. A t th e p resen t tim e the total revTAX REVISIONS . . .
(T u rn to page 44, please)

Federal Reserve Bank of St. Louis

Northwestern Banker, November, 1962


N ew Services
Shew How . . .


D ata i 'mamantea tit ms B etw een ,
W ritte n E specially fo r the N o rth w estern B anker

D istric t Sales M an age r , In te rc ity
N o rth w e ste rn B ell T e le p h o n e C o m p a n y
Des M o in e s , Iotea

J ^ , E C E N T y ears have seen tre m e n ­
dous forw ard strid es in th e electronic
processing of ban k in g item s such as
checks, deposits, and o th er ban k in g
functions. A w ide v a rie ty of au to ­
m ation devices are c u rre n tly in use
by th is n a tio n ’s 14,000 b an k s to keep
pace w ith th e exploding public u tiliza­
tion of ban k in g services.
The larg er hanks are rap id ly in stall­
ing sophisticated com puter system s to
handle th e m ajo rity of th e run-of-them ill ban k in g functions. B ut w h a t of
th e sm aller b an k th a t is not large
enough to ju stify expensive com puter
installations? T hese b anks have th e
sam e basic req u irem en ts for process­
ing data b u t on a m uch reduced scale.
The larg er bank, of course, can now
extend m any additional d ata process­
ing services to its co rrespondent
banks. H ow ever, a new area of the
com m unicating of data from one b ank
to an o th e r needs increased explo ra­
tion and investigation.
DATA-PHONE service is th e new ­
est e n try in a long line of data com ­
m unications services offered by th e
telephone com panies. T elety p ew riter
service, a form of d ata service, has

been available for m any years. O ther
m eans of data com m unications have
also been available b u t have req u ired
special engineering and special serv­
ices. DATA-PHONE for th e first tim e
com bines all th e advantages and flexi­
b ility of reg u lar telephone service
w ith th e ability to tra n sm it data.
Basically, D A T A - P H O N E service
m ig h t be considered as a h y brid of
telephone and data service. It p er­
m its one to com m unicate th e hum an
voice w ith th e ability to tra n sm it data
com m unications in one unit. Connec­
tions are established in th e norm al
fashion as any o ther telephone call
and th e n tra n sfe rre d to th e “data
m ode.”
It should be noted th a t DATAPH O N E S do n o t originate intelligence
ju s t as a reg u lar telephone does not
orig in ate intelligence. As th e tele­
phone depends upon th e h um an to
originate and in te rp re t intelligence so
does th e DATA-PHONE depend upon
m achines. Due to th e w ide v a rie ty of
business m achines on the m ark et to­
day w ith th e capability of data com­
m unications a w ide v a rie ty of DATAPH O N E S are required. But, th ey all
provide th e sam e basic service—th e

■ The a c c o m p a n y i n g a r t i c l e w a s w r i t t e n by Mr. Williams a t t h e r e q u e s t of the
NORTHWESTERN BANKER. It w a s p r e p a r e d a f t e r w e eks of r e se a r c h by th e a u th o r,
who w a s a b ly a s s i s t e d by a n u m b er of his a s s o c i a t e s in m ajor c itie s th r o u g h o u t th e
n a tio n .
The bankin g in dustry h a s s c o r e d a t r e m e n d o u s su c c ess in d e v e lo p in g t h e common
l a n g u a g e of MICR, an d t h e e q u ip m e n t firms h a v e a c h ie v e d like su c c ess in d e v e l o p ­
ing e le c t r o n i c e q u ip m e n t to perform a t high sp e e d . A f u r t h e r s t e p in th e p r o c e s s
of sp e e d in g up th e handling of bank p a p e r work, it would seem to us, would be
t o solve t h e com m u n ica tio n s flow b e t w e e n banks.
New se rvice s t o a c h i e v e this end a r e a v a i l a b l e now b a s e d on y e a r s of r e s e a r c h ,
an d n e w e r ones a r e bein g d e v e l o p e d r e g u la r ly . It is in te r e s t in g to n o te t h a t one
of the n e w e s t se rvice s d e s c ri b e d in this a r ti c l e , DATA-PHONE se rv ice , has
b e en in daily use f o r se v e ra l w e eks by J a m e s t o w n N a tio n a l Bank of J a m e s t o w n ,
N. D., in t r a n s m i t ti n g d a t a from its i n sta llm e n t loan d e p a r t m e n t d i r e c tl y into t h e
c o m p u t e r system of First Bank Stock C o r p o r a ti o n in Minneapolis, w h e re r e c o r d s
a r e m ade, then p r i n te d o u t and m ailed d ir e c tl y b a c k to J a m e s t o w n th e sa m e da y.
Mr. W illiam s' view s a r e p r e s e n t e d here a s a c o m m u n ica tio n s man t a k in g a look
a t how his i n d u str y c an s e r v e t h e field of banking.— The E ditor
Northwestern Banker, November, 1962
Federal Reserve Bank of St. Louis

ability to tra n sm it data from one m a­
chine to an o th er m achine.
Wide Area Phone Service
DATA-PHONE service is com pati­
ble w ith all of th e voice com m unica­
tions services now offered by th e tele­
phone com panies. DATA-PHONE service w ill w o rk w ith reg u lar telephone
service, long distance service, p rivate
line telephone service, and m ore re ­
cently W ATS (W ide A rea T elephone
Service). W ATS is sim ilar to reg u lar
long distance service except th a t it is
available on eith er a m essage or full
tim e basis.
W ATS provides a custom er w ith a
telephone line p e rm ittin g him to call
any telephone w ith in a given geo­
graphic area. C ustom ers have a choice
of six geographic areas w hich in total
encom pass th e en tire U nited States.
He m ay choose one or all of these
areas as his need dictates, th e cost of
service increasing w ith th e geographic
W ATS is an originating service
only. C harges are based on eith er full
tim e or m essage usage. F u ll tim e
service provides 24 h o urs a day, seven
days a w eek service. M essage type
service provides for 15 h o urs per
m onth service w ith p ro rated charges
for each additional h o u r of service
utilized beyond th e initial 15 hour pe­
The flexibility of DATA-PHONE
service now perm its custom ers to
tra n sm it data to and from any loca­
tion in the U nited States th a t has reg­
u la r telephone service — in actuality,
any place in th e U nited States. It
offers th e additional advantage of be­
ing portable to th e ex ten t th a t it can




R anks Can R e Speeded

be m oved from city to city as th e
needs of th e custom er w a rra n ts.
Since DATA-PHONE service is p ro ­
vided over th e re g u la r long distance
netw ork , it also offers econom ical ad­
vantages. D ata calls can be placed as
required. Special services are not
needed, t h e r e b y m a k i n g DATAPH O N E service a pay as you go serv ­
ice. Of course, as volum es grow an
econom ical crossover po in t betw een
long distance and p riv a te line services
is reached. A t th is crossover point
even g re a te r econom ics can be ob­
tain ed by DATA-PHONE custom ers.
The custom er controls w h e th e r or
n ot he w ishes to tra n s m it data or
voice. M any custom ers utilize p riv ate
line telephone or W ATS in th e day­
tim e for n o rm al voice calls and d u r­
ing th e n ig h ttim e for d ata com m uni­
cations th e re b y doubling up on th e ir
com m unications d o l l a r w ith even
g reater econom ic efficiency.
T ruly, a new era in data com m uni­

Federal Reserve Bank of St. Louis

cations is daw ning for th e banking
in d u stry . More and m ore uses of
DATA-PHONE service are being dis­
covered every day. I t appears inevi­
table th a t one day th e m ajo rity of th e
flow of data w ith in th e ban k in g in d u s­
tr y w ill be handled by DATA-PHONE
service. Follow ing is a synopsis of
system s in use today involving eith er
data com m unications or electronic
data processing equipm ent:
T eller R ecording

Several large savings banks have
recen tly installed individual teller
agent sets to assist in handling sav­
ings accounts, deposits and w ith d raw ­
als. T hese ag en t sets w ork directly
w ith a cen trally located com puter in
th e sam e or an o th er location. Pass
books p resen ted to tellers are in serted
into th e agent set and th e p articu lar
tran saction, th e deposit or w ith d raw ­
al, en tered by m anual operation of
v ario u s push bu tto n s or keys.

D A T A -P H O N E S e ts


The tran sactio n is autom atically re ­
corded on the pass book and tra n s ­
m itted to the com puter w hich debits
or credits th e ap p ro p riate account, de­
term in es a new balance, and au to m at­
ically p rin ts out th e new balance on
the pass book contained in th e d istan t
te lle r’s agent u n it—all in a m a tte r of
a few seconds. T ransactions are com ­
pleted faster, m ore accu rately and
w ith a m axim um of service to th e
b a n k ’s savings custom ers. I t can also
be seen th a t th is system elim inates
m any previous m anual en tries from
point of origin to final account posting
and provides an im proved m eans of
balancing accounts.
Closed C ircuit TV

Closed circuit TV is being used on
a lim ited basis for sig n atu re verifica­
tion. I t can be seen th a t w ith a TV

(T u rn to page 46, please)

D A T A -P H O N E S e ts


Northwestern Banker, November, 1962


•¡oint Ownership Cuts Farm Costs
H E tre n d to w ard la rg e r farm in g
u n its and to w ard th e use of
la rg e r and m ore expensive equip­
m en t is m ak in g it increasin g ly diffi­
cu lt for th e sm aller o p erato r to stay
in farm ing.
A lthough additional lan d for produc­
tion w ould re su lt in m ore pounds and
bushels of feed, Clarence J. H ofer and
his th re e sons w ho farm n e a r H uron,
S. D., have reconciled them selves to
b etterin g th e yield of acres now u n d er
th e ir control. Also, th e y are using ev­
ery available m ethod to keep produc­
tion costs a t a m inim um .
One im p o rtan t factor in th e success
of th e H ofer o perations is th e jo in t
ow nership and jo in t use of th e larg er
farm equipm ent.
Mr. H ofer and his you n g est son,
Gordon, age 13, farm n e a r H uron. H is
o th e r tw o sons are m a rrie d and oper­
ate farm s nearby. T hese th re e farm s
are typical of m an y th ro u g h o u t th e
co u n try com peting in a high-cost a g ri­
c u ltu ral economy.
Mr. H ofer’s oldest son, Glen, age
24, spen t his sum m ers helping his
fa th e r on th e hom e place w hile a tte n d ­
ing school. D uring th is tim e he bought
a few calves and th e n continued to
develop his productive nucleus on a
160 acre farm he pu rch ased a t $50 p er
Je rry , age 22, w orked a t A rm our &
C om pany on a part-tim e basis, en a­
bling him to r e n t a neighboring farm
w hich lacked m uch by w ay of produc­
tiv ity and facilities.
T he w o rk on th ese th re e farm s is


Nort hwest ern Banker. November, 1962
Federal Reserve Bank of St. Louis

w ell synchronized and th e total 1,680
acres p ro p erly farm ed.
In 1959, the H ofers p u rchased a new
diesel tracto r, a four-bottom 16-inch
plow and a four-row cu ltiv ato r by
tra d in g in th e gas b u rn in g equipm ent
and by financing th e balance on a
th ree-annual-paym ent basis.
“The diesel w orks 18 ho u rs a day

W ritte n E specially fo r
The N o rth w estern B a n ker

P r e s id e n t
B a n k o f N ew Effington
N ew Effington , Sou th D a k o ta

and la st sp rin g th e 13-year-old boy
plow ed 90 acres in 30 h o u rs,” Mr.
H ofer said. “W e can operate th ree
u n its for half th e previous cost w ith
th is diesel tra c to r.”
A n o th er recen tly acquired and jo in t­
ly ow ned im plem ent is a forage h a r­
vester. As a result, excellent equip­
m en t is available to all th re e operators
an d sufficient labor is read y to operate
th e eq u ip m ent a m axim um nu m b er of
h o u rs d u rin g the busy seasons.
Mr. H ofer and th e boys decided
som e tim e ago th a t livestock w as th e
an sw er to success in th e H uron area
and each fall th ey store large tonnages
of silage in tren ch es or b u n kers. T hey
feel th a t g re a te r profits can be real­
ized from m inim um acreages th ro u g h
th e use of silage.
A fter feed supplies are in store and

p a stu re no longer in abundance, the
H ofers m ake m axim um use of labor
and feed. C larence and Glen have
m ilking parlors. E ach m ilks 15 to 20
cows and sells Grade C m ilk to be used
for cheese and dried m ilk. C larence’s
tw o-stall parlor, com pletely installed,
cost $725. G len’s two-cow system w as
installed for th e sam e am ount.
B oth system s have th e cows ele­
vated, gates are controlled by the
m ilker, and a rtesian w ells provide w a­
te r p ressu re for u d der w ashing and
o ther san itatio n purposes. These fa­
cilities are n ot p artic u la rly elaborate,
b u t C larence says his u n it w ill n e t
$210 p er m onth.
T his en tire farm ing arran g em en t
is evidence to th e fact th a t th e young
m en can en ter ag ricu ltu re in to­
d ay’s econom y. Mr. H ofer says th a t
it doesn’t necessarily cost $15,000 for
equipm ent to s ta rt farm ing. A n ade­
quate living can be produced w ith a
m inim um in v estm en t on to d ay ’s farm
and jo in t ow nership of larg er equip­
m en t is one m ethod th a t can be used
to keep th e in v estm en t down.
The m ethods used by th e H ofer fam ­
ily also show th a t it m ay be practical
for groups of neighbors to arran g e
jo in t ow nership of some of today’s
costly farm equipm ent.
M any pieces of equipm ent are used
ju s t a few days each y ear and are im ­
practical for a sm all farm operator.
Used jo in tly w ith a neighboring farm ­
er, th e larg er equipm ent can be kept
in operation m ore days w ith th e resu lt
of g re a te r re tu rn s from th e in v est­
m ent.—End.




' ~-W
jfn à ü -fin n .
You m ó e s u re y o u r
ttâ fu d b /es a re p ro fa d ­
e d i» y o u r o a /fí......

J m /ú u r tjfô i ¿ m id .





Publie Réfutions
; liions to Help You

W ...W /S /sa 'r r m
m e e A im u s

m u

P u r m M A iu e m




>* i ’ >




COUNCIL BLUFFS, IOWA, S a v in g s B a n k used th is d isp la y to p ro m o te th e r e n ta l of
s a f e ty d e p o sit boxes.

E co n o m y a n d s a f e ty Avere stre sse d th ro u g h o u t th e p ro m o tio n .

w ith a picture of the bank on one side
HE follow ing copy appeared on a and pay postage anywhere in the U. S.
sales folder for safe deposit boxes and — R ay D. Jackson, Secu rity F irst N a­
was used by the Fahey Banking Com- tional B ank, San Diego, Calif.
pan 3b Marion, Ohio. The copy was
2. Trading stamps seem to be a
prepared by Mary Holloway, safe de­ craze now. Perhaps four out of five
posit department:
housewives are saving them. Each
H ow long should i m p o r t a n t
fam ily tries to concentrate on possibly
household papers be kept? The
one or two brands of stamps, yet ac­
follow ing check list can help set
cumulates odds and ends of others.
yo u stra ig h t on w h a t yo u should
W hy not, as a P.R. service, suggest to
keep and how long.
banks to serve as a clearing house for
H ow Long
stamp savers? Banks could give re­
B irth Certificate ............ P erm anent
ceipts to customers and prospects for
W ill ......................................... P erm a n en t
their off-brand stamps, swapping them
M arriage R ecord .......... P erm anent
for the favored kind and perform a
Social S ecu rity C a r d .. .P erm a n en t
real service.—Joe H. Davis, F irst N a­
Incom e T a x R e c o rd s . . . . S ix Years
tional B a n k of M em phis, Tenn.
B a n k B o o k s ...............W hile in Force
3. Have a “construction party” dur­
Insura n ce Policies .W h ile in Force
ing a building or remodeling project.
Cancelled C h ecks ................................. 2-6YearsThe party can be held amid the rubble
Check S tu b s ........................... 6 M onths
of construction and guests can wear
B a n k S ta te m e n ts ..................................... 2Yearscoveralls and protective helmets, sit
R eceipts and Sales S lip s ......................
on nail kegs at rough board tables.
................................................ Up to 6 Years
Entertainm ent is simple; just a piano
M ortgage or L oan C ertificates. . . .
is best. The menu can be made up of
. . . .W h ile in Force (plus 3 years)
food with “construction”' terminology.
R eal E sta te D eed s .......... P erm a n en t
This gets the press and public think­
Other R eal E sta te P a p e rs .................
ing about the building before it’s
...................................................... P erm anent
ready for the grand opening.
Stocks and B o n d s .....................................
4. We get names of newcomers from
. .D uring O wnership (plus 6 years)
the utility company. The local bakery
P roperty and In v e s tm e n t Records
bakes a cake w ith “Welcome to In.............................................................. 6 Years
dianola” on it and one of our staff
U. S. Savings B o n d s .............................
delfvers it along w ith a card that en­
............................................ W hile in Force
titles the fam ily to a free “check w al­
W arranties and In stru c tio n B ooks
let” w hen they call at the bank.—
............................................ W hile in Force
W illiam B u x to n III, Peoples T ru st &
P erm a n en t Records Should Be
Savings B ank, Indianola, Iowa.
K e p t in a B a n k Safe D eposit B ox
5. We send a dozen roses to every
ERE are nine ideas from a recent mortgagor of ours after the loan is
closed and on the day they move into
FPRA meeting:
1. Furnish customers post cards their new home. The flowers last only


Federal Reserve Bank of St. Louis

a short time, but the thoughtfulness
of a bouquet lasts many years .— R o n
W atrous, B in g h a m to n Savings B a n k,
B ingham ton, N. Y.
6. Follow up the “Welcome W agon”
w ith a personal letter or telephone
call; or better yet, a personal call. The
“Welcome Wagon” can only give pass­
ing mention to the bank because of the
number of things to be covered, but
the personal follow-up w ill underscore
the first favorable impression.—F. J.
B lake, Central N ational B ank, Cleve­
land, Ohio.
7. We sent companion mailing pieces,
one titled “Recipe for Money Manage­
ment,” the other a recipe for a tasty
dish. These can be mailed to women
customers, or if a bank has a W omen’s
Call Program, these two pieces would
be fine literature for leaving w ith the
customer or prospect when making a
call. — Mabel Taylor, F irst N ational
B a n k of M em phis, Tenn.
8. Provide a “slide rule” for new ac­
counts personnel for use in demon­
strating to customers the charges un­
der regular checking account plans
and special (10 cents per check) check­
ing account plans for various numbers
of checks drawn w ith different aver­
age balances, and showing the “break­
even” points for selected balances.—
Jam es K. Sanbourne, D enver U. S.
N ational B ank, D enver, Colo.
9. Use present customers to get new
customers by offering premiums. One
bank offers $1.50 per new checking ac­
count and opened 1,000 new accounts
in a year. Advertising was by state­
ment enclosures and in-bank displays.
•— F. J. Blake, Central N ational B ank,
Cleveland, Ohio.
N o r t h w e s t e r n B anke r, N o v e m b e r,




Help Your Customers K eep
W orking Cupitul W orking
P r e s id e n t
L e n d L ease T r a n s p o r ta tio n Co.
M in n e a p o lis, M in n esota



ANY banks and businessm en do
not realize that during the past
tw o decades, the leasing/rental
of cars and trucks has soared to a
gross volum e of over $1 billion in the
United States and the advantages of
its operations are still not too w ell
Leasing of transportation equipment
frees “working capital” and improves
a firm’s “balance sheet.” It elim inates
the necessity of tying up “working
capital” in fast-depreciating transpor­
tation equipment.
Regarding the tax aspects, the ac­
celerated depreciation available under
the Internal Revenue Act of 1954 is
available to business and industry
where the equipment has a useful life
of more than three years. In actual
practice, vehicles are seldom used for
this period of time.
Leasing is a long-term arrangement,
preferably in the interest of both les­
sor and lessee, of at least 15, 24 or
36 months. Of all motor vehicles be­
ing leased or rented in the United
States today, about 90 per cent are
leased rather than rented. Over 3,000
major American firms are “Keeping
Their Working-Capital W orking” by
the use of leased motor vehicles.


Seven Advantages
In general, transportation leasing
offers seven major advantages:
1. Frees or conserves working capi­
tal for more profitable invest­
2. Improves the asset and liability
relationship of a company’s bal­
ance sheet. (The obligations of a
N o r t h w e s t e r n Ban ke r, N o v e m b e r , 1962
Federal Reserve Bank of St. Louis

leasing arrangement are not re­
flected in a financial statement.)
3. Leasing w ill often provide funds,
not available from any other
source, for expanding of medium­
sized concerns.
4. Leasing conserves bank credit
lines. Funds normally borrowed
from financial institutions can
now be used for other productive
5. Leasing serves as a hedge against
r i s i n g costs. Commitment for
leased transportation equipment
is made at today’s dollar value
and if inflation continues, w ill be
paid back w ith devalued dollars.
6. Leasing can eliminate red tape
required by company purchasing
procedures. Once a master lease
is entered into w ith a leasing
company, additional equipment
requirements can be handled rou­
7. Leasing w ill result in a tax sav­
ings, especially when plans w ith­
out options to buy, are selected.
The extent of tax reduction is
determined by the term for which
the lease is written, as compared
w ith the “usable life” write-off,
generally used by a firm for de­
preciating similar transportation
equipment. The shorter the lease
term, as compared to “useful life”
used for depreciation purposes,
the greater the amount of tax re­
In some companies, because of the
nature of their business, the invest­
m ent and expense associated w ith mo­

tor vehicle equipment may be so
small relatively, that leasing may not
be considered as worth the trouble.
Individual situations may make company ownership more advantageous.
W ith creeping inflation and stead­
ily increasing operating costs, firms
are finding a need for a greater dollar
amount of “working capital” in order
to maintain the same volume of business.
Tax Aspects
W hether c o m p a n y ownership or
leasing of transportation equipment
is better tax-wise, depends on the ex­
isting situation. At any rate, payments to a reputable, experienced leas­
ing organization are usually deducti­
ble and easy to establish for income
tax purposes, in contrast to the time
and labor in m aintaining a host of de­
preciation records needed to justify
tax deductions in company ownership
and maintenance.
For additional information, we w ill
be pleased to send you a copy of our
new booklet “How to Keep WorkingCapital Working,” without obligation.
E ditor ’s N ote : Lend Lease Trans­
portation Company is the largest car/
truck rental and leasing organization
in the Upper Midwest. Mr. Glaser is
one of the pioneers in this fast-grow­
ing industry, having established this
firm in 1946. He is past president of
National Car Rental System, Inc., and
now is serving as chairman of its op­
erating board. He also is past president and chairman of the board of
American Automotive Leasing Asso­












A s one member of a seasoned, progressive team,
Karl Sagl has been calling on bankers for 27
years. From such experience comes knowledge
and judgment. So whatever your problem, remem­
ber this - your Commerce Trust man either has
the answ er or quick access to it. Another good
reason why one bank in ten throughout the nation
is a Commerce Trust correspondent.

K a rl Sagl
V ic e P r e s i d e n t

(o m m e rc e X ru s t (o m p a n y >
K a n sa s City’s O ldest an d L argest B a n k
Member Federal Deposit Insurance Corporation

Northwestern Banker, N ovem ber, 1962

Federal Reserve Bank of St. Louis


A m e r ic a n B a n k e r s A s s o c ia tio n


A fjriealln ral C redit


a t S h e r a t o n - F o ilt e iie lle , O m a h a
N o v e m I ie r 1 1 -1 3

SU N D A Y , N O V EM BER 11
3:30 p.m.
5:30 p.m.

R EG ISTR A TIO N on Mezzanine at Sheraton-Fontenelle Hotel,
“DUTCH T R E A T ” Get-Acquainted Hour, Ballroom.

9:15 a.m.

O PEN IN G SESSIO N (Ballroom)—Presiding.............. T. P. Axton

Chairman, A B A A gricultural C ommittee
P resident, L a f a y e tte S a v in g s Bank, L a f a y e tte , Ind.

Greetings...............................................................................Morris F. Miller
P resident, Omaha B ankers A ssociatio n
President , Omaha N a ti o n a l B ank

Address...........................................................................M. Monroe Kimbrel
A .B .A . P re si de nt
Chairman, F irst N atio nal, Thomson, Ga.

“Agribusiness” ...................................................................Dr. Guy McLeod
Manager, Sale s P r omotio n and Produc t D e v e lo p m e n t
Niagara Chemica l D iv is ion
Food M ach in ery & Chemica l Corporation, Fresno, California

M. M. K I M B R E L


“You Can’t Grow Corn in a Bank Lobby” .................. O. E. Anderson
Se c re ta ry, Ohio B ankers Asso ciatio n, Columbus, Ohio

“Agriculture and the Common Market” .................... Dr. O. B. Jesness
H e a d E m e rit u s, D e p a r tm e n t of A gri c ultu ral Econom ic s
U n iv e r s ity of Minnesota, St. Pau l, Minn.

2:00 p.m.

A FTER N O O N SESSIO N (Ballroom)— ............................................
Presiding...........................................................................John H. Crocker
Chairman, C it it z en s N ati on al Bank, D eca tu r, 111.

“Agriculture Implications of the Common Market” .................... Panel
Harry Hukins
A s s is ta n t S ecre ta ry, B unge Corp., N. Y.

Dr. Everett E. Peterson
D e p a rtm e n t of A gri c ultu ral E conomics
U n iv e r s ity of N ebra ska, Lincoln

A. P. Sparboe
V ic e P resident, P i lls b u r y Company, Minneapo lis , Minn.

Dr. Tyrus R. Timm
He ad, D e p a rtm e n t of Agri cultu ral E con om ic s and S oc io lo gy
Texas A.&M. College, College Sta tion, Texas

3:00 p.m.

BULL SESSIO N S — Ballroom, Hunt Room, Sheraton Rooms
(North and South). Theme, “Agricultural Implications of the Com­
mon Market.” Discussion Leaders............................................................
.................... Mr. Hukins. Dr. Peterson, Mr. Sparboe and Dr. Timm
5:45 p.m. Social HO U R (Sheraton Rooms, North and South). H o sts..........
...................................................................... Omaha Bankers Association
7:00 p.m. D IN N E R (Ballroom)—Presiding.......................................... Mr. Axton
A ddress.....................................................................................Gordon Allott

T . R. T I M M

T . P. A X T O N

U. S. Senator from Colorado, W ashi ng ton, D. C.

7:15 a.m.
9:00 a.m.

BR EAK FA ST (Ballroom). H o sts.. Doane Agricultural Service, Inc.
M ORNING SESSIO N (Ballroom)—Presiding. . . . Otto Kotouc. Jr.
President , H om e S ta t e Bank, H u m b o ld t, Neb.

“A Farmer Looks at His Banker” ...................................... Leavitt Booth
Arv ad a, Colo.

“Banking and Rural Development” ...................... Dr. Brice Ratchford
Dean and E xte nsi on D ir ec to r, U n iv e r s ity of M issouri, Columbia

“A Better Understanding” ............................................ Jordon Crouch
V ic e P resident, F irs t N ati onal B ank of N e vada, Reno, N ev.

“Correspondent Banking for Farm Lending in the ’60s” .......... Panel
Moderator, Edward M. Norman
P resident, F irs t N atio na l, C la rk sville, Tenn.

E. J. Clabuesch
President, Pi geon S ta t e Bank, Pigeon, Mich.

O. “Dooley” Dawson
V ic e Pr e sid e nt and Manager
A gri c ultu ral D e part m e nt, B a n k of Sou th w est, Hous ton, Tex.

D R . G. B. W O O D

12:30 p.m.

L U N C H EO N (Ballroom)—Presiding.................................. Mr. Axton
“Banking and a Changing Agriculture” ........................ Dr. G. B. Wood
He ad, D e p a rtm e n t of A gricul tural E co nomic s
Oregon S ta t e U n iv e rs it y , Corvallis, Ore.

Northwestern Banker, November, 1962
Federal Reserve Bank of St. Louis




“We have been your customer for many years.
We have always felt that ‘Farming for Profit’
reports are invaluable to us as a goodwill builder
and for the sound thinking that we are able to
adapt into our farm management and the advanc­
ing of credit to farmers.”

"I like the specific information given in FARMING
FOR PROFIT. It’s more helpful than detailed
releases giving a lot of statistics. I always read
it carefully for I find ideas in it which I may apply
to my business.”
—V. A. France, Macomb, Illinois
Customer of Citizens National
Bank, Macomb

—R. J. Solomon, Farm Department Manager,
Citizens National Bank, Macomb, Illinois

C utting C osts of Building
F arm Loans and D eposits
E f f i c i e n t u s e o f y o u r b a n k ’s a d v e r t i s i n g b u d g e t

o th ers. E v e ry r e p o rt gives y o u r fa rm

cu sto m e rs th e T O T A L

is m o r e e s s e n t i a l t h a n e v e r t o i n c r e a s e t h e n u m b e r o f l o a n s

P I C T U R E o f w h a t is h a p p e n i n g in a g r i c u l t u r e .


T h e r e is n o o t h e r p r i v a t e s e r v i c e w i t h t h e n a t i o n w i d e p e r s o n n e l

d ep o sits

am ong



custom ers . . . an d




r e a s o n a b le cost.


M a n y b a n k s acro ss th e c o u n tr y h a v e f o u n d th e a n s w e r to th is
p roblem . T h e y use a u n iq u e

exclusive service, w h i c h y o u , t o o ,

w i l l f i n d c a n 1 ) m o v e y o u a h e a d o f c o m p e t i t i o n in y o u r a r e a ;
2) m a k e y o u r ad v ertisin g d o llar go fu rth e r a n d do m o re; and,

p ro v id e



c u sto m e rs


p ro sp ects w ith


and V E R IF I­

h e w ill r e a d ev ery w o r d . F u r n is h in g th ese facts f ro m
p u t s y o u in t h e p o s i t i o n o f a i d i n g y o u r f a r m

D oane

cu sto m e r w ith

authority h e k n o w s a n d r e s p e c t s .

M o n t h l y , y o u c a n assist y o u r f a r m c u s to m e r s w ith m a n a g e m e n t

" p in p o i n t ” th e c u s to m e rs a n d p ro sp e c ts to receive th is

v a l u a b l e p u b lic r e la tio n s tool.

m a r k e t i n g i n f o r m a t i o n , s u p p l i e d i n D o a n e ’s F A R M I N G



P R O F IT .

Farming for Profit is a D o a n e A g r i c u l t u r a l S e r v i c e r e p o r t .
T h ro u g h

s e v e n r e g i o n a l e d itio n s , it d e a ls d ir e c tly w i t h


YY o u c a n ss<e n d Farming for Profit t o y o u r f a r m c u s t o m e r s f o r
o n ly p ennies a m o n th each.

Farming for Profit c o v e r s a l l s i d e s o f f a r m i n g

— liv e sto c k , c ro p s, m a c h in e ry , b u ild in g s , ta x e s,
l e a s e s , s o ils ,
lo n g -ran g e

f e r t i l i z e r s , e tc ., a l o n g w i t h
forec asts


bo th



Farming for Profit
kept, r e r e a d c o n s t a n t l y . Y o u r b a n k n a m e a n d

A n a d o r s a l e s l e t t e r is f l e e t i n g .

m a n a g e m e n t p ro b lem s o f y o u r custom ers . . . your


Farming for Profit.
S e n d a n y f a r m e r t h e s e vital usable facts a b o u t h i s b u s i n e s s a n d

T h e r e ’s n o w a s t e c i r c u l a t i o n w h e n y o u u s e F a r m i n g f o r P r o f i t .

e x t r e m e l y b e n e fic ia l service.


fac ilitie s to d u p l i c a t e th e F I E L D

C A T I O N d e l i v e r e d i n D o a n e ’s

short and

n s s s ?



m e ssa g e w ill be p rin te d p ro m in e n tly at th e to p

exclusive dis tribut,on rtghts in y o u r a r e a . I f y o u w i s h , D o a n e

o f ea c h copy. Y o u receive

* ^ \F * J *
T hese
D oane

rep o rts

reflec t

n atio n w id e


com bined

n etw o rk


th in k in g



m anagers,

th e

re se a rc h e rs, en g in eers, eco n o m ists, leg al a n d ta x spe cialists a n d

Federal Reserve Bank of St. Louis

W r i t e n o w f o r s a m p l e o f Farming for
Profit, p l u s c o m p l e t e i n f o r m a t i o n o n i m p r i n t i n g , m a i l i n g a n d
q u a n t i t y prices.



can h a n d le th e c o m p lete m a ilin g for you.






T » / Ir r it i i n t e r n a t i n n a t /ta n ti
D. WOODS, chairman of
the First Boston Corp., w ill be­
come president of the International
Bank for Reconstruction and Develop­
ment January 1, 1963, succeeding Eu­
gene R. Black.
Closely associated w ith World Bank
operations for more than a decade,
Mr. Woods has been an investm ent
hanker since 1918.
Born in Boston, July 27, 1901, he
grew up in Brooklyn, N. Y., and in
1918 joined the New York investm ent
firm of Harris, Forbes and Company,
at the age of 17. He stayed with that
firm until he joined First Boston, ac­
tually an outgrowth of Harris, Forbes,
in 1934.
He became chairman of First Bos­
ton in 1951.

Data By T elstar
The feasibility of using space satel­
lites for long-distance transm ission of
banking data has been demonstrated
in Dayton, Ohio, at the research and
development center of the National
Cash Register Company.
The NCR tests were conducted
jointly with the Bell System, which
developed the space satellite Telstar,
now orbiting the earth at a speed of
16,000 miles an hour.
They involved an NCR “on-line”

data processing system in which basic
business machines can be linked di­
rectly to the computer, regardless of
the distance involved, for faster and
more efficient information processing.

In F o reig n D ep a rtm en t
Hector H. D o m in g u e z has been
elected vice president of First Nation­
al Bank in St. Louis by the board of
directors of the bank, it was an­
nounced by James P. Hickok, chair­
man of the board.
Mr. Dominguez
w ill be associated
w ith J a m e s L.
Sha r p in the
bank’s foreign de­
partment. He w ill
s u c c e e d Mr .
S h a rp u p o n h is
retirement n e x t
For more than
H. H. D O M I N G U E Z
20 years Mr. Dom­
inguez was director of foreign sales
for International Shoe Company and
handled a substantial volume of ex­
port orders.

AIB E x e c u tiv e s M eet
The annual midwinter m eeting of
the executive council of the American
Institute of Banking, educational sec­

tion of The American Bankers Asso­
ciation, w ill be held at the San Marcos
Hotel, Chandler, Ariz., January 21-25,


E lected By H arris
Chalkley J. Hambleton has been
named vice president and secretary of
the Harris Trust and Savings Bank,
Chicago. Mr. Hambleton joined Har­
ris Bank in 1935 and has since been in
its trust department, where he was
elected assistant secretary in 1948, as­
sistant vice president in 1953 and vice
president in 1960.


N am e T o k y o M anager
Alexandre A. Berline has joined the
international division of W ells Fargo
Bank in San Francisco and has taken
charge of the bank’s Far East repre­
sentative office in Tokyo.
A graduate of the U niversity of
Paris in sciences and foreign lan­
guages, he started his long career in
international finance in 1925 w ith the
Paris staff of the Banque des Pays
Europe Centrale.

E lected at C hem ical
J. Irwin Miller, chairman of Cum­
mins Engine Company, Columbus, In­
diana, has been elected a director of
the Chemical Bank New York Trust
Company, New York.





i n t e r e s t e d in



in te re s t?

No need to pay ta x es on all your
income. Especially when municipal
bonds now offer generous yields that
are exem pt from F ed eral income
taxes. Our municipal bond department
has a selected list of current offerings
of state and municipal bonds. We will
be glad to mail you a copy without
obligation. Just call or write our office.

D e a n W it t e r
Members New York Stock Exchange


517 Locust Street
Des Moines 9
ATIantic 3-0411
San Francisco

505 Farnam Building
Omaha 2
Los Angeles

New York

49 offices serving investors

Northwestern Banker, November, 1962
Federal Reserve Bank of St. Louis

& Cg .

Midwest Stock Exchange






e r i c a n


a tio iia l


a n k


FR A N K LIN 2-9200

Northwestern Banker, November, 1962
Federal Reserve Bank of St. Louis


nu ijin fi
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S u g g estio n s on
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Northwestern Banker, November, 1962
Federal Reserve Bank of St. Louis

USINESS Christmas gifts can be
a valuable addition to your bank’s
goodwill program, if the gifts are se­
lected and given properly.
The Business Goodwill Advisory
Council, in a pamphlet entitled “Busi­
ness Gifts at Christmas—Good or
Bad?”, lists seven rules as the keys
to successful gift giving:
1. Keep your gifts of modest value
in relation to the importance of each
recipient as an employee, prospect or
customer. Extravagant gifts can be
m isinterpreted as a form of bribery.
2. Choose your gifts individually,
considering the tastes of each group
of recipients, or preferably, of each
individual recipient.
3. Choose only high quality gifts
that are useful, durable and depend­
4. Personalize each gift, if possible,
with the recipient’s name or initials.
5. Package each gift attractively and
6. Accompany each package with a
personal note, greeting card or at
least a special gift label.
7. Deliver each gift w ith a flair, if
possible personally or by special m es­
senger, and preferably to each re­
cipient’s home rather than to his of­


Remember Purpose
In setting up a gift program for
your bank, you should keep in mind
that the only purpose of the program
is to build goodwill toward your

bank. Most people consider a bank
as a cold and impersonal thing. A
business gift should express, as much
as possible, the personal relationship
between a person who represents the
bank and the person to receive the
To achieve these purposes your gift
should first of all look like a gift and
it should be presented with a flair,
with some attempt to recapture the
excitem ent we all had as children
when seeing the gaily-wrapped pack­
One of the most difficult questions
regarding gift giving is “What should
a gift cost?”
This is almost impossible to answer
in general. The purpose of a gift is
to gain friendship, and to increase
goodwill. How much is this worth?
Your gift should be in relationship
to its potentials.
A bank customer may have two
banks in mind when he considers a
business transaction. He w ill pick the
one he remembers with the greatest
friendliness. The proper gift can
build such a friendship.
It is practically impossible to de­
velop a percentage figure to determine
an amount to spend on a gift. The
cost of a gift should be dependent
upon the relationship between your
firm and the customer. The one thing
to be particularly watchful for is that
the gift dare not be too lavish. A
lavish gift may be accepted, but it
still may arouse resentm ent in the re-











W R ial E x e c u t iv e s C h o o se
A recent study of six price categories offered b y Select-A-Gift Division, Ebsco Indus­
tries, Birmingham, A la., sh o w s that most recipients ch ose gifts for their hom es. Each
booklet offered 30 item s, but the bulk of the selection w en t to only 8 to 12 of the items
offered. F ollow in g is a com parison b etw een gifts selected for the hom e and for outdoors,
broken dow n b y price categories:



per cent
p e r c en t
per c e n t
per cent
per cent
p e r c en t

18 per c e n t
9 per c e n t
10 per c e n t
11 per c e n t
5 per c e n t

In addition, m agazin es p la y e d an important part. If the m agazin e selection s w ere
ad d ed to these groups, the total selectin g this a s their choice cam e to 40 per cent of
a ll orders.


cipient, or an effort to show that he
was not influenced by the presenta­
G ift Certificate P lan s


One of the most successful gift giv­
ing m ethods developed in recent years
is that of gift certificate plans. It is
simple to use and the customer is
assured of receiving a gift he w ill use
and enjoy. The plans work some­
thing like this:
A company issues a catalog which
describes a group of gifts. The cata­
logues usually are attractively printed
and come in a folder w hich identifies
the donor. The gifts in any one cata­
logue are of the same price range
and the donor selects the price range
of gifts he w ishes to present before
the catalogues are mailed to custom ­
ers. In some instances the donor
handles the mailing; in others a list
is supplied to the catalogue firm.
Recipients of the catalogue select
from the gifts in the catalogue and
indicate w hich he would prefer on
a business reply card included in the
catalogue. The certificate company
receives the reply card and ships
directly to the recipient. The firm
giving the gifts then is billed accord­
ing to the actual merchandise mailed
Perhaps the major advantage in

this plan is that all the mechanical
handling is taken care of, and the
recipient gets som ething he wants.
In selecting a catalogue to be mailed
to customers you should consider the
following questions:
Are the gifts offered what you would
like to offer or receive? W hat does
the catalogue look like? W ill it bring
a credit to you? Is the plan reliable?
Does it offer good value, w ell handled
and shipped promptly?
Many advertising specialty jobbers
now have gift certificate plans avail­
able, some of which have the added
feature that you can make up your
own catalogue using sets of sheets,
already printed, each of which de­
scribes a single item.
L on g R ange P rogram s

P ersonalize Gifts

Still another gift-giving idea is that
of adopting a long-range gift pro­
gram. Some companies have adopted
such a plan w ith great success. W hile
they do not give the same thing year
after year, each year’s gift is a vari­
ation of, or a supplement to, what
they had given previously.
Glassware is perhaps the simplest
example of this type of gift. Each
year a set of glasses is selected, each
year of the same pattern, but each
year a different shape or size. One
year you might give a set of iced tea

The sim plest w ay to make a gift
personal is to put a monogram or
the name of the recipient on it. In
addition to being appreciated, the re­
cipient is less likely to give it away.
But imprinting three letters, or
even an entire name, on a gift is not
really personalizing it. Most execu­
tives are sophisticated enough to
know that imprinting is a fairly m e­
chanical operation, done at compara­
tively little expense. The real method
of personalizing a gift is to find some-




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Give th e p re s e n t w ith a fu tu re .
T im e -sa v in g E R A S O M A T IC is a n
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glasses, the next brandy snifter, etc.
Recipients thus build up a fine set
of glassware, but at the same time
each year’s gift is sufficiently differ­
ent to be interesting.
Other examples of the same idea
are desktop accessories, personal jew ­
elry, kitchenware, cutlery, leatherbound volum es of great books. This
program is particularly effective if
the gift is related to the donor’s busi­
Since a gift is basically from one
person to another, the more it is
selected especially for the recipient,
the more effective it w ill be. Every­
one likes to get som ething that shows
that someone put thought into the

Send check or money-order to:

8705 Woodland Avenue, Cleveland 4, Ohio

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Northwestern Banker, November, J962
Federal Reserve Bank of St. Louis

thing that would be acceptable to
only one man in the world—the one
to whom you are sending the gift.
This is not easy and the recipient
knows it, and thus appreciates the
personal thought that w ent into the
To do this you have to learn some­
thing about the man himself, his hob­
bies and his pleasures, his likes and
his dislikes. This takes time but is
not impossible.
Gifts do not have to be expensive to
be effective. It is the appropriateness
of the gift that makes it successful.
Giving gifts does not have to be a
headache; it can even be fun. If it
is an enjoyable task and you think
as much of the recipient as you do
of the donor chances are you will
make w ise selections of gifts.
Perhaps the best single rule of gift
giving is a simple one: use quality
and taste. W hatever you give, w heth­
er it be small or large, inexpensive
or high in price, let it be the best of
its kind. Make sure that it is some­
thing that you would be glad to re­
ceive, and som ething you can be
proud of as a donor. Let your signa­
ture on the card accompanying the
gift be the only place your name ap­
pears on the gift. If the gift is ap­
propriate your name w ill not be for­
gotten. If the gift is not appropriate,
the presence of your name on the
gift w ill do you no good.
Finally, don’t spoil a good selection
by sloppy handling.—End.

V ear A rou n d G ift
A gift that is used and appreciated
12 months out of the year is an atlas.
The American Map Company, Incor-

porated, 3 W. 61st Street, New York
23, N. Y., features a complete line of
atlases ranging from giant world
maps and space atlases to a useful
vacation and highway atlas of the
United States that includes photo­
graphs and description of the top va­
cation spots in the country.

T w o U n iq u e G ifts
Two unusual gifts that have proven
to be successful are the Spruce Elec­
trical Manicurist and the Erasomatic
Electric Eraser, available from the
Abar Manufacturing Company and
Mar-Go-Co., respectively, C le v e la n d ,
Ohio. The electrical manicurist has
been effective as a gift to either men
or women. It provides superb finger­
nail care in just a few minutes.
The electrical eraser cuts erasing
time by two-thirds, results in neater
work, reduces wasteful “start-overs,”
does not damage paper and is simple
to operate.



Both of these products are sold
only direct-from-factory at a 40 per
cent discount from their established
price of $49.92, making a net price of
$29.95 each, delivered. Further price
reductions are based on quantity over
six units ordered for shipment at
one time to one address.


this investor-owned
electric and gas company

C harles J. R o u b ik
Charles J. Roubik, prominent Chi­
cago banker and civic leader, died last
month in St. Francis Hospital in
Mr. Roubik, 64, was vice president
and secretary of Harris Trust and
Savings Bank, which he joined in
1920. He had been w ith the Harris
trust department more than 40 years,
and an officer of the bank since 1926.

(Continued from page 27)
limited to a natural person, but also
includes corporations, pension funds,
etc. Forms are available from the
office of the Comptroller. 12.1 (a),
(b), (c), (d); 12.2 (a), (b); 12.3 (a),
E m p loyee stock option and stock
purchase plans. In order to enable

Northwestern Banker, November, 1962





C hanges in capital structure. Five
changes are proposed as follows:
(a) Capital adequacy w ill no longer
be confined to the ratio of capital to
risk assets and to total deposits. In­
stead, it w ill be determined upon the
consideration of these factors: quality
of management; liquidity of assets;
history of e a r n in g s and retention
thereof; quality and character of own-


W a yn e H um m er a Co .


Federal Reserve Bank of St. Louis


national banks to attract and retain
competent personnel, this proposed
regulation would permit the adoption
of employee stock option plans con­
forming to the requirements of the
Internal Revenue Code, and other em ­
ployee stock purchase plans as may
be appropriate. A national bank could
sell shares of its capital stock, under
this regulation, to its employees, for
a consideration of not less than 85 per
cent of the fair market value of the
shares on the date the option is
granted or, if a stock purchase plan,
on the date the shares are sold. Such
plans must be adopted by the board
of directors and be approved by at
least two-thirds of the outstanding
shares and by the Comptroller. Stock
options shall not extend beyond a 10year period from date of issuance.
Shares issued to employees under
these plans may be authorized but un­
issued by stockholders. 13.1; 13.2; 13.3.

in 25 counties of Iowa


7 REG U LA TIO N S . . .

now serves 269 communities









ership; burden of m eeting occupancy
expenses; potential volatility of de­
posit structure; quality of operating
procedures, and bank’s capacity to
meet present and future financial
needs of its trade area, considering
the competition it faces.
(b) A uthorized b u t u nissued stock
may be permitted by vote of stockhold­
ers owning two-thirds of the stock of
the bank, and w ith approval of the
Comptroller. Such authorized but un­
issued stock may be issued from time
to time to em ployees pursuant to stock
option and purchase plans described
(c) Stock dividends, whether on a
recurring or nonrecurring basis, will
not be subject to disapproval of the
Comptroller, except in rare or unusual
circumstances. Technically, approval
is sought from the Comptroller by fil­
ing Form 1904-C w ith the Regional
Chief Examiner. If the Regional Chief
does not send disapproval or commun­
icate otherwise w ithin 15 days the ap­
plication shall be deemed approved by
the Comptroller, and the bank may
proceed to obtain approval of stock­
holders if this has not already been
(d) P referred stock may now be is­
sued by vote of stockholders owning
two-thirds of the stock of the bank,
in issues convertible or nonconverti­
ble of one or more classes, with such
other provisions and in such amount
and w ith such par value as shall be
approved by the Comptroller.
(e) C apital debentures also may be
issued w ith similar rules for preferred
stock. These could be issued with
conversion f e a t u r e s into common
stock where appropriate. The princi­
pal amount of capital debentures out­
standing at any time, when added to
all other outstanding indebtedness of
the bank, except those forms of in­
debtedness exem pt from provisions of
12 U.S.C. No. 82, shall not exceed an
amount equal to 100 per cent of the
bank’s unimpaired, paid-in c a p it a l
stock plus 50 per cent of the amount
of its unimpaired surplus fund. 14.1;
14.2; 14.3 (a), (b); 14.4; 14.5 (a), (b);
14.6 (a), (b); 14.7 (a), (b); 14.8.
Comptroller Saxon has stated it is
his intention that Parts 7.5 and 7.6 of
Part 7 (paragraphs 1 and 2 above),
and Parts 13 and 14 (paragraphs 6 and
7 above) “w ill enter into effect on or
about November 30, 1962, with such
revisions as may be deemed appro- |
priate in the light of the comments
“Parts 10, 11 and 12 (paragraphs 3,
4 and 5 above) of the proposed regu­
lations w ill not enter into effect prior
to February 1, 1963.”— End.
Federal Reserve Bank of St. Louis

Checks written on safety paper provide protection against
alteration. The safety features that reveal change of
amount, payee or endorsement, prevent the bank check
from becoming a “ blank” check.
La Monte safety papers give the check look that assures
your customers their checks are properly protected.















Northwestern Banker, November, 1962

T a x

K e v is io iu i

. . .

(Continued from page 29)
enue received from this source is perhaps $30 or $35 m il­
lion. Under the new bill that w ill be increased to be­
tween $200 and $250 million. Under this new law, the in­
come of a savings and loan association, after deducting
the interest and earnings paid out to the depositors
(shareholders), w ill have a further deduction of 60 per
cent of its income for a bad debt reserve. The balance
w ill be taxed at the regular corporate rates. That is in
the form that the House passed the bill. The Senate in­
creased this by several million dollars by increasing the
tax on stock savings and loan associations, but this was
later dropped.

C om panies — Mutual insurance companies, that is fire and casualty com­
panies, w ill have their taxes raised, too. At the present
time, a small county or neighborhood mutual that has
gross receipts of $75,000 or less pays no taxes. That
amount is raised to $150,000.
Under present law, mutual companies are taxed under
one of two formulas. Under one formula they are taxed
at ordinary corporate rates on their investm ent income
only. Under the other formula they pay a tax on gross
investm ent income, plus premium income after policy
dividends are paid. They m ust pay the higher of the two.
) M utual In surance

P r o m o te T ru st O fficers
Three vice presidents in the pension
trust department have been named by
the First Nation­
al City Bank, New
They are: Ever­
e t t G. J u d so n ,
K e n n e t h E.
Frantz, and Her­
bert E. N e v in s .
Mr. Frantz and
Mr. N evins were
both formerly as­
sistant vice presi­
dents in the same

Under the new law, these mutual insurance companies
w ill pay taxes at the regular corporate rates on all their
income less a deduction of one per cent of their losses,
plus one per cent of their underwriting gain. This deduc­
tion is placed in a loss reserve account for five years. If
it is not used during that time for losses it is then taxed,
but at a lower rate.
In addition to raising the exemption for the very small
mutual companies that I mentioned, the next size mu­
tuals whose gross receipts run from $150,000 to $500,000
may pay the tax on investm ent income only. There is
a third category of mutual companies whose gross re­
ceipts are more than $500,000 but not more than $1,100,000
where the effective rate of taxation is less than the larger
companies but is graduated so that if their receipts are
in excess of $1,100,000 they pay the full corporate rate
less the deductions that are mentioned.
There were some sections of this bill with which I dis­
agreed. There were other sections of the bill that were
meritorious and may have been long overdue and, of
course, I supported these. In the final analysis, I voted
against the bill because the net effect of the bill was an
over-all loss in revenue of more than $500,000,000 as it
passed the Senate and a greater amount w hen it came
from conference. This was primarily because of the loss
of revenue due to the investm ent credit.
I did vote against final passage because of the loss of
revenue involved. It did not indicate my opposition to
many of other sections of the bill because I specifically
favored them.—End.

group organized to represent the 600
independent bankers throughout Min­
nesota requested President Kennedy
to dism iss Mr. Saxon because of poli­
cies detrimental to the “tradition of
democratic and diffused system of
banking.” Mr. Saxon has repeatedly
advocated branch banking irrespec­
tive of state law, the resolutions com­
mittee of the convention declared.
Other resolutions passed at the
m eeting include a determined stand
against attempts to legislate branch­
ing in Minnesota, outlawed in 1923,
and a stand against further expansion
of savings and loan associations
through establishm ents of branches.
Currently federally chartered savings
and loans are allowed to branch in
the state.
The independents also served notice
they w ill fight in the 1963 legislature
against centralized and branch bank­
ing w ith a program of their own.

1. Adoption of new educational pre­
requisites designed to ensure that stu­
dents w ill have attained a reasonable
knowledge of certain basic subject
areas before coming to the campus.
2. Elimination of the present mini­
mum age requirement.
3. Admission of women bank offi­
cers as students.
4. Elimination of bank quotas.
Educational prerequisites for appli­
cants for the banking major w ill ??

E lect L aS alle E x e c u tiv e s
LaSalle National Bank, Chicago, has
announced the appointments of Clyde
V. Hackney and Charles D. Turgrimson as vice presidents. They were
previously assistant vice presidents of
the bank, Mr. Hackney in the retail

S to n ier S c h o o l C hanges
K. E . F R A N T Z

H . E. N E V I N S

department. Mr. Judson comes to the
bank from First Boston Corporation.

V o te to R e m o v e S axon
The Independent Bankers of Min­
nesota voted to demand immediate
removal of Comptroller of the Cur­
rency James P. Saxon to be replaced
by a “better qualified person w ith ex­
perience in banking.”
The first annual m eeting of the
Northwest ern Banker, November, 1962
Federal Reserve Bank of St. Louis

The Board of Regents of The Ston­
ier Graduate School of Banking has
approved important changes in the
School’s a d m is s io n s requirements
which w ill apply to applicants for en­
rollment in the 1964 entering class, it
was announced recently by Dr. Mur­
ray G. Lee, director of the school.
The new requirements, which are
part of a comprehensive long-range
program for upgrading the School’s
academic program, include the follow­

C. V . H A C K N E Y

C. D . T U R G R I M S O N

banking division, and Mr. Turgrimson
in the trust department. Also an­
nounced was the promotion of Gene
W. Brandon from assistant trust offi­
cer to trust officer.













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it h


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Federal Reserve Bank of St. Louis

• S io u x Falls

Northwestern Banker, November, 1962

O f H ‘ 11

N e w

Manufacturers Hanover Trust
Company has opened its new
downtown headquarters office at 40
Wall Street in New York.
The hank occupies the first five
floors of the building and the first and
second basement levels. These facili­
ties serve as headquarters for Manu­
facturers Hanover’s Wall Street divi­
sion, corporate trust division, the se­
curities department for the entire
bank and the m oney transfer and wire
communications center.

Satisfied Insureds and
Agents A g ree--


a l l S t r e e t

The 160,000 square feet of space oc­
cupied by the bank has been under
renovation for more than a year.
Charles S. Bishop, senior vice presi­
dent, is in charge of the office.
These m oves represented the last
major relocation of bank personnel
since the merger of Manufacturers
Trust and The Hanover Bank on Sep­
tember 8, 1961. In a complex series
of moves since that date, the bank
has relocated more than 4,000 employ­
ees. Two-thirds of them were relo­
cated downtown, the remainder up­
town at 350 Park Avenue, the bank’s
uptown headquarters. Correspondent
facilities are at 350 Park Avenue.

E xp an d Irv in g T rust
Demolition work began recently on
three buildings in the financial district


of lower Manhattan in preparation for
construction of a 30-story expansion of
the Irving Trust headquarters build­
ing at One Wall Street.
When completed, the enlarged Irv­
ing Trust Building w ill occupy the
entire Broadway block from Wall
Street to Exchange Place. The three
buildings being removed were for­
merly occupied by The Hanover Trust
Bank and have a long history as quar­
ters for financial houses.
The project w ill contain about one
million square feet. Total cost will
be $25 million. Completion date is
set for late 1964.

On M ercan tile Board
Monte E. Shomaker, executive vice
president of Brown Shoe Company,
has been elected to the board of di­
rectors of Mercantile Trust Company,
St. Louis.


relia b le


6 2 nd YEAR

T ire

IHutual Sure
lu b t lf
J. E. Wilson, President

J. M. Winchell, Secretary

Banker, November, 1962
Federal Reserve Bank of St. Louis

N E W A D D I T I O N p la n n e d b y I r v in g T ru st
C om pany in L o w e r M a n h a tta n .

(Continued from page 31)
camera, checks can be viewed on re­
motely located receiving units to be
immediately compared w ith the orig­
inal signature of the depositor. Closed
circuit TV is also being used in one
of the larger banks in New York for
daily administrative meetings between
the officials located in one bank with
those located in a branch bank.
Closely allied w ith the concept of
closed circuit TV, several other visual
presentation system s are also under
consideration or in operation. Facsim ­
ile service which permits written,
typed, etc., data to be transmitted
electrically from one point to another
may play an important part in bank­
ing functions of the future. Negotiable

C a n c e lla tio n b y P e r fo r a tio n *

*82 0,",îA‘3,,Uu





and magnetic
by both
humans and

use y o u r S e c u r it y H a llm a r k to get m o re
c h e c k in g a C C O U n t S - T h e C u m m in s S ecu rity H allm ark
P rom otion d ram atically tells your cu stom ers and p rosp ects how
and w h y your perforated can cellation m ak es it safe to m ail back
paid checks, safe for d ep ositors to keep them as lon g a s th ey
w ant, and m ak es each canceled check an un d isp u ted proof of
p aym ent. It exp lain s how th is better m ethod of can celin g is the
on ly on e givin g all of these ad van tages to the d ep ositor—that its
u se is ju st on e v isib le exam p le of the m any w ays you protect
and serve them . It in clu d es ad m ats, radio and T V com m ercials,
p u b lic ity —and m ore, all free. S en d for yours now.

^SINCEtw / S4A



securities, bonds, stocks, etc., may one
day be transferred from one bank to
another or between banks and their
custom ers by facsim ile service.
Another photoelectric device per­
m its signature verification through an
encoding, decoding procedure of the
custom er’s signature. The signature
is scrambled (encoded) originally and
when inserted in this device at a
teller’s location is autom atically un­
scrambled (decoded) for v i e w i n g
through a special type viewer. Many
similar functions requiring visual
presentation of data can be envisioned
and undoubtedly a great deal of re­
search is being conducted in the elec­
tronics scanning field.

typewriter as a data service, in actu­
ality, it has been the backbone of the
majority of data communications in
the banking industry. Teletypewriter
s e r v ic e is continually undergoing
changes and modernization and un­
doubtedly will continue to be a major
data communications service for use
in the banking industry.
W hat A bout F uture?

There may be many other data proc­
essing and communicating system s in
use today in the banking industry of
which I am unaware. 1 do not offer
this as a comprehensive list of such
system s, rather a representative list.
What about the future? What can we

Personally, I feel the surface has
only been scratched. The majority of
attention thus far in the adaptation of
the electronic processing methods in
the banking industry have been de­
voted to the internal functions of a
given bank. The success of the MICR
plan is representative of the benefits
of uniform procedures within the
banking world.
Looking into my crystal ball I can
visualize a nationwide data communi­
cations banking network which one
day w ill permit all banking functions
to automatically flow from one bank
to another, be electronically processed
and the individual accounts instanta­
neously and perpetually maintained.
— End.

In stallm en t Loan P aym en ts

Consumer financing and b u d g e t
loan accounting is currently being
performed for affiliated correspondent
banks w ith a simple DATA-PHONE
communications s e r v i c e u t i l i z i n g
WATS and a simple card reading de­
Upon the establishm ent and author­
ization of a loan the central processing
location, usually a computer, prepares
a “coupon booklet” containing individ­
ual paym ent cards with all of the data
concerning the customer loan. Each
coupon card represents a m onthly in­
stallm ent to be paid at a prescribed
time. These booklets are then mailed
to the person who made the loan. As
paym ents are received, either in per­
son or through the mail, they are re­
corded and collected. Once a day a
call is placed from the computer loca­
tion via WATS to the bank at which
tim e each card is inserted in the card
reader and transm itted by DATAPHONE service to the central process­
ing location.
The data is received at the process­
ing center in card form for automatic
insertion into the electronic process­
ing system . The electronic processor
w ill update and analyze each account
and prepare a detail report of that
bank’s previous consumer loan pay­
ment activity including the new bal­
ance for delivery by mail the follow­
ing day. Other functions could also
be handled by this DATA-PHONE/
card reading system.
P rivate L ine T eletyp ew riter

Teletypewriter service has been
used for m any years in the banking
world to advise member banks of
credits and debits. It is also being
used to transfer securities from one
bank to another bank, particularly
the transfer of governm ent securities
between the Federal Reserve Banks.
W hile some may not consider tele­
Federal Reserve Bank of St. Louis

. . . 4 8 H O U R S ' S E R V IC E A DAY!
More, if necessary. The First has the manpower and
the working experience to apply as many hours as necessary
(day or night) to help a correspondent. This know-how
is available to you. W e’d like to help you.




ir s t


t io n a l


n k



env er


Northwestern Banker, November, J962


J a i*

D eW alt H. A n k e n y
V ic e P r e s id e n t,


Theo. Hamm B rew ing Company
Charles H. B ell
C h a irm a n o f th e B o a rd ,

General Mills, Inc.
B enton J. Case
D ir e c to r,

S. T. M cKnight Co.
George B. Clifford, J r.
J ohn H. D aniels
P r e s id e n t,

Archer-Daniels-M idland Co.
T homas L. D aniels
C h a ir m a n o f th e B o a rd ,

Archer-Daniels-M idland Co.
D onald C. D ayton
P r e s id e n t,

The Dayton Company
S tephen P. D uffy
P r e s id e n t,

Our Own Hardware Company
A lbert G. E germayer
S e n io r V ic e P r e s id e n t,

Cargill, Incorporated
R obert F aegre
M innesota & Ontario Paper Co.
P aul S. Gerot
P r e s id e n t,

The Pillsbury Company
F. P eavey H effelfinger
C h a ir m a n o f th e B o a rd ,

F. H. Peavey & Company
Allen S. K ing
P r e s id e n t,

Northern States Power Co.
F ra n k P. L eslie
P r e s id e n t,

The John Leslie Paper Company
Goodrich L owry


P r e s id e n t,

N orthw est Bancorporation
J o hn A. Moorhead
P r e s id e n t

J ohn S. P illsbury, J r.
P r e s id e n t,

N orthw estern N ational Life
Insurance Company
S amuel H. R ogers
S e n io r V ic e P r e s id e n t
a n d E x e c u tiv e T r u s t O fficer

H enry T. R utledge
E x e c u tiv e V ic e P r e s id e n t

L ucian S. S trong
C h a irm a n o f th e B o a rd

The Strong Scott Mfg. Co.
H arold W. S weatt


C h a irm a n o f F in a n c e C o m m itte e ,

M inneapolis-Honeywell
Regulator Co.
H arold H. T earse
P r e s id e n t,

Searle Grain Company
A lfred M. W ilson


E x e c u tiv e V ic e P r e s id e n t,

M inneapolis-Honeywell
Regulator Co.


J ohn S. P illsbury



D ir e c to r E m e ritu s

S E P T E M B E R 28, 1962

Cash and Due from Banks ........$157,380,569.45
U. S. Government Obligations .. 99,098,625.87
Other Bonds & Securities ....... 28,156,179.88
Loans and Discounts ................. 326,543,044.11
Stock in Federal Reserve Bank
Customers’ Liability
on Acceptances .......................
Income Earned
but not Collected ...................
Bank Premises, Furniture
and Fixtures ...........................
Other Resources .........................
Total Resources ................ $627,254,122.08

Capital Stock .............................$ 15,000,000.00
Surplus ....
Undivided Profits ............. -........
Reserve for Possible
Future Loan Losses ...............
Reserve for Interest,
Taxes, etc..................................
Income Collected
but not Earned ...................
Letters of Credit
and Acceptances .....................
Deposits ....................................... 559,449,374.02
Total Liabilities ................... $627,254,122.08

United States Government and other securities carried at $97,352,234.21 are pledged to secure public
funds and trust deposits and for other purposes as required or permitted by law.
Avenue, Sixth
Federal Reserve Bank of St. Louis

to Seventh Streets

Federal Deposit Insurance Corporation

John Dragavon, State Bank of Tower,
vice president, and A. M. Castle, First
National of Cloquet, secretary-trea­
D istrict 9 (at E a st Grand F o rk s ) —
G. B. Pederson, First National of
H a w le y , president; Duncan Barr,
Farmers & Merchants of Breckenridge, vice president, and R. F. Foley,
Citizens State of Roseau, secretarytreasurer.

M in n e s o ta




/tankers E le c t D istrict O fficers
S h a tter A tten d a n ce R eco rd s
of most of

R the 700 banks in Minnesota—
setting new records at all m eetings—
e p r e s e n t a t iv e s

were represented in at least one of
the seven annual district m eetings
held last month at various sections
of the state.

aminer for the Ninth Region, and
Gerald L. Bryan, Minnesota commis­
sioner of banks.
D istrict Officers

The f o llo w in g are the newlyelected officers, arranged numerically
by district number, and they w ill
take office officially in June, 1963, at
the MBA Annual Convention:
D istrict 1 (at A u s tin )—R. L. Seibert,
Rochester State Bank, president; R.
D. Burns, First State, Grand Meadow,
vice president, and Don Harrington,
First National, Plainview, secretarytreasurer.
D istrict 2 (at N ew U lm ) —E. A.
Fenrick, Peoples State Bank, Truman,
president; John O. Huso, First State,
I. W E R M O N T
T. E. O L S O N
Storden, vice president, and E. L.
Wayne Blackmarr, Wayzata State Kauffmann, Farmers National, Min­
Bank, MBA president; Thomas E. Ol­
nesota Lake, secretary-treasurer.
son, First National of Starbuck, vice
D istrict 3 (at St. P aul)— H. R. Hompresident; and Kenneth A. Wales, ex­
medahl, State Bank of Rush City,
ecutive secretary, led the traveling
president; Charles E. Peterson, First
group of the State A ssociation’s offi­
State of Coon Rapids, vice president,
cers and speakers on the 10-day round
and Robert D. Hagen, First National
of meetings.
of Stillwater, secretary-treasurer.
New officers w ere elected at each
D istrict 4 (at St. P aul)—David R.
district m eeting and also, there were Fesler, Liberty State, St. Paul, presi­
endorsem ents at each of the m eetings dent Goodwin S. Anderson, North­
for officers of the State Association, western National of St. Paul, vice
to be elected at the big MBA conven­ president, and Watren R. Hinze, First
tion next June.
State of St. Paul, secretary-treasurer.
D istrict 5 (at St. P aul)—R. W. CrouE ndorsed for MBA
ley, Marquette National, Minneapolis,
Endorsed for state office were: president; D. M. Johnson, Midland
President—Thomas E. Olson, execu­ National, Minneapolis, vice president,
tive vice president, First National of and E. R. Locke, First Minnehaha
Starbuck; Vice President—Glenn A. National, Minneapolis, secretary-trea­
Uggen, president, Peoples State Bank, surer.
W ells, and Treasurer—Robert C. Nel­
D istrict 6 ( at St. Cloud)—George E.
son, president, Northwestern State Phillips, Wright County State, MonBank, Hallock.
ticello, president; Robert J. W ells, St.
Irv Wermont, nationally-known in­ Cloud National, vice president, and G.
spirational speaker, addressed bank­ L. Hewitt, Farmers State, Dorset,
ers at each of the sessions, as did a
D istrict 7 (at M ontevideo)—E. J.
panel of bankers including Paul W. LaFave, Jr., Citizens Bank, Morris,
Gandrud, Swift County Bank, Ben­ president; Edwood Throndrud, North­
son; Ora G. Jones, Goodhue County western State, Ortonville, and Elvin
National, Red Wing, and Glenn A. Thue, First National, Worthington,
Uggen, Peoples State Bank, Wells. secretary-treasurer.
Apearing at evening sessions were D istrict 8 (at Grand R apids ) —Mary
C. B. Upham, chief national bank ex­ R. Lushene, Biwabik State, president;
Federal Reserve Bank of St. Louis

A u stin B an k er H o n o r ed
Melvin B. Siegfreid, vice president,
Austin State Bank, was honored last
month on his 25th anniversary with
the bank. Officers and em ployees cel­
ebrated with a coffee party and pres­
entation of a gift. Al H. Haakenson,
president, said Mr. Siegfried is the old­
est employee at the bank in actual
length of service.
He started in 1937 in bookkeeping
and advanced through virtually all de­
partments to his present position, his
only interruption being during World
War II when he served in the U. S.
Army. His present duties are as com­
mercial loan officer.

M oves to A lb ert Lea
W illiam Sinclair has resigned as
vice president, Northwestern State of
Osseo, to become vice president of the
First National of Albert Lea. He has
been with Osseo bank two years, serv­
ing prior to that as bank examiner
with the Northwest Bancorporation.

T h om as R. H assm an
Thomas R. Hassman, 58, president,
First National of Aitkin, died sudden­
ly recently w hile having dinner with
friends at Myr Mar Lodge. Surviving
him are his wife, his mothfer and five

T o B arron B ank
Fred Pfeiffer has resigned as assist­
ant cashier at Lake Crystal National
to accept a similar position with the
Bank of Barron. Very active in civic
affairs, he has been with the Lake
Crystal bank since December, 1958.

B e n so n B ank R e m o d e ls
First State Bank of Benson is un­
dergoing extensive interior and ex­
terior remodeling. Included in plans
are a new clock, letter depository
drop, walk-up teller window and a sec­
ond entrance on 13th Street N. The
insurance agency and bookkeeping de­
partment w ill be moved to the north
building, which w ill be com pletely re­
modeled. Also added in that area will
be a new conference room. Safe de­
posit boxes w ill move into the space
now used for the insurance agency.
Northwestern Banker, November, 1962

Atbuoufirciue ,D * t n p e n <





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DIVISION 3T ADDS TWO —Larry K ennedy, left, and D ick Swanberg

•V;-: .



¿ tf: i í

Federal Reserve Bank of St. Louis

recently joined the F irst of Saint P au l’s Division V. Larry joined
F irst in 1956 after graduating w ith honors from N otre Dame, receivj
Bachelor of Philosophy Degree w ith a m ajor in finance. He has
received a cum laude Bachelor of Laws degree.
Dick Swanberg joined the bank in 1957 after receiving a Bachej
A rts degree in economics a t M acalester, where he was photo editor
weekly newspaper and President of the College Business Jaycee C liil
has since been active w ith the Saint Paul Jaycees and is currently Tre;|
and a m em ber of the Board of Directors.




Q nunrlç


ttk m g ìf e tu s
N N E S O T A , O C T O B E R 1962





r T
; ìWm *™

★ ★ ★ ★ ★ ★ ★ ★ ★
T he divisionalization of
th e c o m m e rc ia l le n d in g
function and officer staff of
the F irst N ational B ank of
Saint Paul was previously
a n n o u n c e d by P re s id e n t
P h ilip H . N a so n . T h re e
m ajor commercial loan di­
visions h av e been e s ta b ­
lished. A fourth division is
concerned prim arily w ith
sales and the servicing of
accounts, b u t will also be
involved in loan activities.
T he fifth division, (Divi­
sion V), serves banks and
bankers in the N inth F ed­
eral Reserve D istrict and
handles loans, both overline
and direct, in the N inth
D istrict outside the Twin
Cities area.

Federal Reserve Bank of St. Louis

Now called Division ¥ ,
Department expands activities
T h e D e p a r t m e n t of
Banks and Bankers (Divi­
sion V) is now responsible
for loan relationships w ith
in d iv id u a ls and business
organizations in the N inth
F ederal R eserve D istrict,
b o th d ire c t an d th ro u g h
C orrespondent banks.

to hold the responsibility
for all of the bank’s rela­
tionships w ith other banks
in the N in th Federal R e­
serve D istrict. This includes
both custom er and non-cus­
tom er banks, and embraces
deposit and rem ittance ac­
tiv ity , safekeeping of se­
curities, overline loans, and
Division V will continue bank investm ent.

F IR S T in service to St. Paul and the Upper M idwest...

D IV IS IO N V— BAN KS A N D BANKERS W allace L. Boss,
Donald W. B uckm an, E lm er M. V olkenan t, Vice Presidents •
David A. S hern, Assistant Vice P resident • Laurence R.
Kennedy, H enry N. S nyder, Richard C. S w anberg, Assistant
Cashiers • Roland W. H ohm an, T ru s t Advisory Specialist •
John F. M ullen and John M . W ooldridge, Bond Advisory
Specialists •

Member Federal Deposit
Insurance Corporation

^*4§; I



T w in C i t y N e w s



F irst N ational B ank of M inne­
apolis has received a Chris Certifi­

cate Award from the Columbus (Ohio)
Film Festival for its baseball film,
“Minnesota Twins: Pride of the Upper
Midwest.” Bank of America was the
only other bank to win an award in
the ’62 judging, in which several hun­
dred films were entered.

Richfield reports C. A ddison


5f' * *

A nthon y (T ony) B ibus, vice presi­

P hilip H. A nderson, vice president,

dent, Stock Yards National of South
St Paul, was hon­
ored last month
at a dinner party
at the Minnesota
Club on his 45th
anniversary. Offi­
cers of the bank,
directors, former
b a n k e r s were
present to pay
tribute to him
and present him a colored TV set.
Mr. Bibus was honored again at an
informal coffee party at the bank
where 200 of his friends came in to
wish him pleasure after his retire­
ment, scheduled officially for Janu­
ary 1, 1963.

E. B. Crabtree Company, tobacco
products wholesaler has been named
a members of the board of North­
western National of Bloomington-

V anderbuilt, manager,
steno department; R uth Crandall, as­
sistant trust officer, and D orothy Lie­



W illis and Borg Advertising of
Minneapolis has announced the ap­
pointment of D ouglas E. B ronder to
the staff. Mr. Bronder began his
duties last month as account execu­
tive, serving the Archer Daniels Mid­
land account, and w ill also work in
a creative capacity at the agency. He
has been associated w ith John W.
Forney, Incorporated, Bruce B. Brew­
er and Campbell-Mithun, Incorpo­
rated, all of Minneapolis.

jji ^ ^

Eleano r

administrative assistant, trust
department, Northwestern National
of Minneapolis, represented their
bank at the recent 40th Annual Con­
vention of the National Association
of Bank Women, in St. Louis.

* * *


The A m erican N ational of St. Paul

is planning a three-day open house,
December 3, 4 and 5, to introduce its
reconstructed and enlarged banking
quarters to the public. Costing more
than $3 million, the multi-story ex­
pansion marks the new American Na­
tional as the most recent addition to
St. Paul’s planned urban renewal de­
velopment. An exterior refacing was
a highlight of the program as was
the addition of more than 38,000
square feet. Total floor space now
exceeds 76,800 square feet. Exterior
curtain wall panels are enamel over
steel in varying shades of blue. Ma­
jor highlights are the new two-story
glass enclosed lobby 74 feet on Sev­
enth and 60 feet on Robert Street, air
door on Robert Street, escalator, two
elevators and beautiful ultra-modern
appearance throughout.





^ ^ ^

i tnuiurts lii'ide m
s Forum

STY LE SHOW a n d B rid e ’s F o ru m spo n so red b y th e F i r s t N a tio n a l B a n k of M in n e ­
ap o lis a tt r a c t e d n e a rly 600 p ro sp e c tiv e b rid e s se e k in g to le a rn how to h a v e th e w e d ­
d in g of th e ir d ream s a n d to m ake i t fit t h e ir p u rses. F rances Baker, F i r s t N a tio n a l
a s s is ta n t c a sh ie r a n d w o m en ’s r e p re s e n ta tiv e se t up th e p ro g ram .
Northwestern Banker, November, 1962
Federal Reserve Bank of St. Louis

E arl Ew ald, executive vice presi­
dent and director of Northern States
Power Company, has been named a
member of the advisory board at
the Lincoln Office of Northwestern
National Bank, announces John A.
Moorhead, president. Mr. Ewald also
is a director, Atomic Industrial For­
um, and member, advisory commit­
tee, U tility Management Workshop,
Columbia U niversity
* * *
M iss N ellie B ensend, assistant cash­
ier, Midland National Bank, Minne­
apolis, represented her bank at the
40th Annual Convention of the Na­
tional Association of Bank Women
late last month at St. Louis. More
than 500 women in executive posi­
tions in banks throughout the coun­
try were expected to attend.

* * *
Something new in “getting out the
vote” has been arranged by the



September 28,1962

Cash and Due from B a n k s............................................................................................................
United States Government Securities and Securities Guaranteed by the Government
Other Bonds and S ecu rities...........................................................................................................
Loans and D isco u n ts........................................................................................................................
Interest Earned N ot C ollected .....................................................................................................
Customers’ Acceptance L iab ility.................................................................................................
Bank Premises and Furniture and F ixtures............................................................................
Other A ssets........................................................................................................................................
T otal R esources..................................................................................................................................

$593. 283,149.67

Capital S to ck ............................................................
$ 15,000,000.00
S urplu s........................................................................
Undivided P rofits....................................................
Reserve for Interest, Expenses, Taxes, etc...............................................................................
Interest Collected N ot E arned ......................................................................................................
Acceptances and Letters of C redit..............................................................................................
Federal Funds P urchased..............................................................................................................
Other L iab ilities.................................................................................................................................
Dem and D ep o sits....................................................
Tim e D ep o sits..........................................................
Total L iabilities.................................................................................................................................


$ 47 021,842.52


^ 625,662.33


^5O 000,000.00
^ 871,167.84
507 714,448.35

United States Government obligations and other securities carried at
$89,372,059.50 in the foregoing statem ent are deposited to secure
ublic funds, United States Government deposits and trust deposits totaling
$64,782,620.64, and for other purposes required by law.

C lark e B a s se tt S en ior V ice P resid en t and
C h airm an of T ru st C om m ittee
T h eo d o re W . B e n n e tt M in in g E n gin eer
C o n ley B rook s P residen t,
B rooks-S can lon , In c.
J osep h H . C olm an C hairm an of the Board,
F ir st B an k Stock C orporation
G ranger C o stik y a n P residen t, F irst B ank
Stock C orporation
J o h n C ow les P residen t, M in n ea p o lis
S ta r an d T ribu n e Co.
G eorge C. C rosb y C h airm an of the B oard,
S. T . M c K n ig h t Co.
B ruce B . D a y to n E xecu tive V ice P residen t,
T he D ayton C om pan y
R u fu s W . H a n so n E xecu tive V ice P residen t
J o h n H . H a u sch ild D irector, Chas. W .
Sexton Co.
T o tto n P . H effelfin ger P residen t,
F. H . P eavey & Co.

D a v id M . L illy P residen t, Toro
M a n u fa ctu rin g C orporation
G. A llan M a cN a m a ra C h airm an of the
B oard, Soo L in e R a ilro a d C om pan y
H . T erry M orrison C h airm an of the B oard,
C argill, In c.
G ord on M u rray P resid en t
P h ilip W . P illsb u r y C h airm an of the B oard,
The P illsb u ry Co.
G. S lad e S ch u ster Section on A d m in istra tio n
M a y o C lin ic, Rochester, M in n .
D o n A. S te v e n s V ice P resid en t an d
D irector, G eneral M ills , Inc.
C harles J. W in ton , Jr. C o-C hairm an of the
B oard, The W in ton Co.
P a u l B . W ish art C h airm an of the Board,
M in n ea p o lis-H o n eyw ell R egulator C om pan y
R o b ert C. W ood P resid en t, M in n ea p o lis
E lectric Steel C astin gs Co.
J am es T . W y m a n E xecu tive V ice P residen t,
S u p e r V alu Stores, Inc.
Northwestern Banker, November, 1962
Federal Reserve Bank of St. Louis


M in n e so ta


Minneapolis League of Women Voters
in cooperation with the F ir st N ational
of that city. The League invited both
Democrat and Republican state can­
didates to the bank’s Plaza so voters
could meet them in person.

* >1= *

Midland National of Minneapolis, has
reported that directors have author­
ized the transfer of $1 million from
undivided profits account to surplus.
He commented also on a new all-time
high in savings and time deposits,
which have advanced almost $5 m il­
lion, or 40 per cent since January.
W illiam

R. C h a p m a n ,



R euel I. Lund has been elected as­

sistant cashier at Fifth Northwestern
National, Minneapolis, according to
Carl F. W ieseke, president. Mr. Lund
joined the staff as a trainee in 1956,
moved to the credit department in
1957 and the bank’s North American
office in 1959, where he became assist­
ant manager in 1961
C harles J. Curley, board chairman,
and H arry L. H oltz, president, First

Trust Company of St. Paul, have an­
nounced the election of: R obert J.
Knoepfler, from trust administrator
to assistant trust officer; John L. Jerry,
from trust administration to assist­
ant trust officer; E u gen e W. McCarthy,
from investm ent specialist to assist­
ant secretary, and Thom as I). D w ight,
from business development in the
trust department of Continental Illi­
nois National of Chicago to assistant
trust officer.

* * *

Directors of Northwest Bancorporation, Minneapolis, have approved
filing and application for listing the
firm’s common stock on the New
York Stock Exchange.
Goodrich L ow ry, president, said the
listing is expected to be completed
early in December.

* * *

Directors of First Bank Stock Cor­
poration voted last month to increase
the regular quarterly dividend from
47% cents per share to 50 cents per


share, and declared an extra divi­
dend of 7% cents per share, both pay­
able December 10 to stockholders of
record at the close of business No­
vember 16.
Granger C ostikyan, president, said
consolidated net operating earnings
for the first nine months of 1962
totaled $11,169,741, or $3.22 per share.
Figures for the first nine months
of 1962 for N o rth w est B ancorporation
and affiliated banks include: Consoli­
dated net earnings $12,048,646, up 2.4
per cent over first nine months of
last year. After preferred stock diviends, earnings were equal to $2.20 per
share on 5,424,565 shares. Consoli­
dated net income was $13,243,309, or
$2.42 per share of common stock.
Gross earnings were $77,250,125, up
9.1 per cent over last year’s threequarter figures, w hile expenses rose
14 per cent. Directors declared a pre­
ferred stock dividend of $1.125 per
share and a common stock dividend
of $.325 per share, payable to stock­
holders of record, November 2. Total
dividends on common stock in 1962
were $1.30 per share, same as in

* * *
board c h a ir m a n ,
Midland National of Minneapolis, has
been named Minnesota chairman for
Radio Free Europe for 1962-64, suc­
ceeding Clifford C. Som m er, presi­
dent, Security Bank & Trust of Owatonna.
A rn ulf U eland,


sfc sji
W illiam W. H elm s, w ith the First
Trust Company of St. Paul the past
nine years, has been elected assistant
vice president of the American Na­
tional of St. Paul, announces John F.
N ash, president.

Strongfriend o f the
^Independent Banker!

^e<*e*cZ%, a t /M cw ytâ tfîL ,


N o r t h w e s t e r n Banker, N o v e m b e r ,
Federal Reserve Bank of St. Louis




Signal Hills State Bank, West St.
Paul, has been approved by the
F.D.I.C for deposit insurance, reports
Jad A sfeld, president, who said he ex­
pects the new bank w ill be ready to
open by January, in the Signal Hills
Shopping Center




F ran k B. K rause, vice president in
charge of the corporate trust divi­
sion, First National of Minneapolis,
has been elected president of the
Corporate Fiduciary Association of
Minnesota, a state-wide organization
of trust companies and banks having
trust powers. He had been chairman
of the executive committee. Mr.
Krause succeeds W illard M. H enjum ,
vice president, Northwestern Nation­
al of Minneapolis.
Other new officers are: Vice Pres­
idents Carroll G. F ish er, trust officer,
Northern City National of Duluth:
John R. M ontgom ery, vice president
and trust officer, Midland National of
Minneapolis, and Secretary-Treasurer
H arry L. Holtz, ¡^resident, First Trust
Company of St. Paul.
John O’Connor, vice president and
trust officer, Northwestern National
of St. Paul, was named chairman of
the executive committee.— End.

B an k ers to O perate
L ife In su ra n ce C om pany
An application to register for sale
170,000 shares of common stock at $3
per share in a new insurance company
has been approved by the Minnesota
Commerce Commission. The compa­
ny, Minnesota Bankers Life Insur­
ance Company, w ill be owned and op­
erated primarily by bankers in the
state and w ill emphasize the sale of
Credit Life Insurance.
Listed as officers and directors in
the application are: Vernon P. Weyrich, president, Farmers State of Lake
Benton, president; R. E. Simms, exec­
utive vice president, Security State of
St. Michael, vice president; Cyril
Kramer, president, Altura State of Altura, treasurer; John O. Bohmer, pres­
ident, State Bank of Brooten and First
State of Murdock, secretary, and Rob­
ert W. Dygert, attorney, Dygert, Gunn
& Welsh, assistant secretary.
Directors are listed as: Paul W.
Grandrud, vice president, Swift Coun­
ty Bank, Benson, Minn.; Kermit H.
Hansen, vice president. Organic Soil
Builders, Inc.; Raymond Dana, part­
ner, Dana, Golden, Moore & Rasmus­
sen, Sioux Falls, S. D.; Donald J.
Bohmer, president, Stearns County
State Bank, Albany; G. A. Uggen, pres­
ident, Peoples State Bank, Wells; T.
S. Robertson, president, R u s h fo r d
State Bank; Raymond E. Dana, Sioux
Falls attorney and president, Prairie
States Life Insurance Company, Hu­
Two incorporators are listed as di­
rectors are Ruth B. Lundsten, presi­
dent, Buffalo National at Buffalo, and
Oscar J. Schwalm, National Reserve
Life Insurance Company, Hopkins.











M in n e so ta

J. S. E ffertz

J o in s StaH* at V irgin ia

N am e C hange at B raham

four y e a r s , has
b e e n e le c t e d a
vice president of
the First Nation­
al of Winona, ac­
cording to an an­
nouncement by A.
E. Stoa, president
o f th e W in o n a
bank. Both banks
a r e affiliates of
th e N o r t h w e s t
Bancorporation. Mr. Bergland has
been very active in community work,
serving in various offices of service
clubs, lodges and church organiza­

S. Effertz, 81, board chairman, Hensel A. Nelson, formerly unit
State Bank of Belle Plaine, died last manager, installm ent loan department,
month at his home in Belle Plaine First National of Bismarck, has been
after serving the banking industry assigned to the time pay installment
since youth. He began in early youth loan department of the First National
at banks in Waconia, Echo and Hec­ of Virginia.
tor, becoming cashier of the State
Bank in Belle Plaine in 1906. He ad­ E lected at W in on a
Kermit R. Bergland, vice president
vanced through the years to president,
then chairman of the board, a position and manager, installm ent loan depart­
ment, Security National of Faribault
he held at death.

for more than

The First National Bank of Braham
changed its name to the First State
Bank of Braham, effective October 1.
About 75 per cent of Minnesota banks
are now under a state charter, an­
nounces George A. H. Olson, presi­

C eleb rates 4 5 t h A n n iversary
The Farmers & Merchants State
Bank held open house last month to
celebrate its 45th anniversary of do­
ing business in Cook. Coffee and
doughnuts were served all day at the
bank by the American Legion Aux­
iliary. Two door prizes of $25 sav­
ings bonds each were awarded lucky
adults and ten lucite Stack Coin
Banks, free balloons, suckers and coin
purses were given children.
George J. Francis, president, foun­
der of the bank and still active in its
operation, w as present to greet friends,
new and old.

O rv ille T o ft
The body of Orville Toft, president,
Farmers State Bank, Delavan, was re­
covered from Bass Lake last month,
about two days after he had dis­
appeared w hile fishing.

D u lu th A irp ort Bank
Gerald Bryan, Minnesota Banking
Commissioner, said recently that an
attorney general’s opinion upholds the
right of an insured state bank to
establish a banking facility at the
Duluth airport, the opinion over­
ruling an earlier one by Mr. Bryan.
Northwestern Bank of Commerce had
requested opinions. Upon being ad­
vised of the earlier ruling, Fred C.
Lewis, Northwestern bank president,
filed for a charter to operate a new
bank at the airport.

E lected D ir e c to r at E veletli
Lee Lundgren, manager of Lundgren Motors the past seven years, has
been elected a director of the Miners
National of Eveleth. He has won
many awards from Ford Motor Com­
pany for an outstanding agency for
sales and management.

H eads W atertow n Bank
A. R. Wasser, with the American
State Bank of Watertown since 1957,
has been elected president and a direc­
tor of the bank, succeeding William
Berry, president more than seven
years, who has resigned to become
president and one of the incorporators
of the Fridley State Bank in Fridley.
Air. Wasser, active in A.I.B. the past
four years, is president of the Hutch­
inson study group and secretary-treas­
urer of the Lions Club.

George K . M illard
George K. Alillard, 49, assistant cash­
ier, First National of International
Falls, died last month at a Minneap­
olis hospital where he had been a
patient several weeks.


chairman of the Minnesota Group, In­
vestm ent Bankers of America, at their
recent m eeting at the Minikahda Club.
He succeeds James Klingel of Juran &
Moody. Benjamin M. Storey, Jr., of
Kalman & Company, St. Paul, is vice
chairman and W illis Jones of AllisonWilliams & Company, Alinneapolis, is
secretary-treasurer. Walter P. Han­
sen of Caldwell, Phillips, Inc., St. Paul,
and Robert D. Field of Paine, Webber,
Jackson & Curtis, St. Paul, were
named to the executive board.

P lu m m e r B ank Sold
Lorence Granum, Jr., of Fosston has
purchased controlling interest of the
Plummer State Bank from A. E. Heupel, president of the bank who plans
to retire the first of next year. Mr.
Heupel has been in banking in Min­
nesota and South Dakota more than
39 years.

E x p a n sio n at F ergu s F alls
The First National of Fergus Falls
has purchased the large Bayley Build­
ing, situated between the present
bank building and the bank’s park­
ing lot, with plans for future expan­
sion. Total area now owned by the
bank north of the present quarters
is 142 feet on Mill Street and 175 on
Cavour Avenue.

F o rest L ake O pen H o u se
The Forest Lake State Bank held
open house recently in its new build­
ing at the corner of South Lake and
S. W. Second Avenue. A $50 Series
E Savings Bond was given lucky
guesser in a “Pot of Gold” contest.
Two $25 bonds and 10 $5 gift certif­
icates also were given. Children re­
ceived $5 savings accounts for their
close guesses in the contest. The first
500 women were given orchids and
men had a choice of a registered key
chain or ball point pen. All young­
sters were given tops.

H ow ard D ayton
In v e stm e n t B a n k ers E lect
W heelock W hitney of J. M. Dain &
Company, Minneapolis, was elected

Howard Dayton, 66, cashier of the
First State Bank of Fountain, died
last month after an illness that con-

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and Information.

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2550 Pillsbury Ave. S.

Minneapolis 4, Minnesota
N o r t h w e s t e r n Ban ker, N o v e m b e r ,
Federal Reserve Bank of St. Louis




M innesota


fined him at a Rochester Hospital his
last 10 days. He had been w ith the
bank the past 42 years, serving also
in com m unity positions as township
clerk and mayor.

N ew O fficer at H o p e
John Perra has been elected assist­
ant cashier of the Farmers State
Bank in Hope, reports L. J. Metcalf,
president. Mr Perra, a graduate of
St. Thomas College, has completed
graduate work at the U niversity of

E. G. Z im m erm an
E. G. Zimmerman, 87, retired vice
president of the Janesville State
Bank and former merchant in that
community, died last month after an
illness of four years. He had been
long active in com m unity affairs,
serving the school board and the
cemetery board for many years.

M arshall B ank to E xp an d
The First National of Marshall re­
cently purchased two Marshall land­
marks, w ith plans to demolish the
buildings—P r o d u c e r s Cooperative
Creamery and Central Hotel—and
erect an ultra-modern bank build­
ing. Plans for the new structure, to
feature drive-in teller service, addi­
tional customer parking and the lat­

est in services and convenience, are
not complete. The present building
w ill be sold.

named installm ent loan officer of the
First State Bank in Paynesville, an­
nounces Oren Quill, president of the
Paynesville bank.

M on tgom ery C harter A p p roved

Staff A d d itio n , P r o m o tio n ,
N ew E q u ip m e n t A n n o u n ced

An application for a charter for the
First National Bank of Montgomery
—third such approval in several years
(the other two being in the Twin
Cities)—has been okayed and stock
in the bank is being sold. Plans for
location of a site and an opening
date will be announced soon.
Among the applicants are: John
H. Lebens, Nels Merrild, Albert Wondra, Tom Kelm, Bob Lebens, Frank
Dolejs, Clary Zoff, John Kaup, Dr.
Henry Kucera, Dr. Lloyd Richter,
Glen P. Flicek, Louis Becker, Fred
Washa, Henry Tupa, Frank Ruhland,
Elroy Mladek and Louis “Duke”

Warren Sporrey, president, First
National of St. James, has announced
the addition of Eldo Deckmann, for­
merly of Mankato, to the staff as in­
surance agency manager; the promo­
tion of Martin Hillesheim, formerly
teller, as loan accounting supervisor,
and a new all-purpose Burroughs ac­
counting machine, which Mr. H ille­
sheim w ill operate. Mr. Deckmann
has been auditor for the National
Bank Examiners, U. S. Treasury De­
partment, more than five years. Prior
to that he was auditor at the First
National in Windom.

N ew D irecto r at M ankato

K ush B ank S old

H. J. Mehr, president, Toews-Mehr
Implement Company, has been elected
a director of the American State Bank
in Mankato, s u c c e e d in g the late
Charles O. Steiner.

J o in s P a in e sv ille Staff
Donald D. Johnson, formerly audi­
tor and installm ent loan officer of
First National in Valley City, has been

Purchase of the majority interest in
the State Bank of Rush by Farm ers’
Acceptance Corporation of Minneapo­
lis has been announced by A1 Brevik,
president of the corporation, and H.
R. Hommendal, president of the bank,
who has since retired. C. H. Sommer
remains at the bank as vice presi­
dent. Other officers and directors re­
main the same.

Increase Your
Customer Service
from this
to this

by using

“The Best in the M idw est” Correspondent Bank

T he Live Stock N ational B ank
Northwestern Banker, November, 1962
Federal Reserve Bank of St. Louis







At NABAC M eetin g
C. Harlan Hight, c o m p t r o lle r ,
Northwest Security National Bank of
Sioux Falls, last month attended the
annual meeting of the board of di­
rectors of NABAC in Miami, Fla. As
a district director of the organiza­
tion, Mr. Hight represented banks in
Iowa, North and South Dakota, Min­
nesota, and W isconsin.

S o u th D a k o ta




M anagem en t Conference Xov.
14th Annual
ment Conference

Bank Manage­
of the South
Dakota Bankers Association is being
conducted November 8 at the Marvin
Hughitt Hotel in Huron.
Theme of the
one-day m eeting
is “ I m p r o v in g
Your Bank Im­
age.” The morn­
ing s e s s i o n is
devoted to discus­
sions by George
A. Dempsey, di­
rector, public re­
lations and adver­
tising, American
D R . F. A. C O U R T
National Bank &
Trust Company, Chicago; Harold L.
Jenkins, vice president, Traders Na­
tional Bank, Kansas City, and Don L.
Waage, Investor’s Diversified Serv­
ices, Incorporated, Minneapolis.
Luncheon speaker is Richard Gil­
ley, director of Dale Carnegie Courses,
Minneapolis. The afternoon w ill be
devoted to workshop sessions with
persons attending divided into three
groups. Group moderators are W il­
liam A. Troutman, president, Rushmore State Bank, Rapid City; A. Boyd
Knox, president, McCook County Na­
tional Bank, Salem, and Roy K. Lippert, cashier, Ipswich State Bank,
Featured speaker at the evening
banquet w ill be Dr. Frank A. Court,
pastor of Trinity Methodist Church
in Denver, Colo., and is w ell known
as a minister, writer and lecturer.
He appears through the courtesy of
General Motors Corporation. For 14
years w hen he was pastor of St. Paul’s
Church in Lincoln, Neb., Dr. Court
conducted two radio services on Sun­
day, one over KFAB, Omaha, and
one over KFOR, Lincoln.

B u ild in g In Y an k to n
Plans for the new American State
Bank building in Yankton have been
announced and bids were to have
been received late last month.
The new building w ill be located
at the southw est corner of Third and
Cedar Streets, fronting on Cedar

C orrection
In the last issue of N orthw esthern
B anker it was erroneously reported

Street. The main building w ill mea­
sure 50 feet on Third and 80 feet on
Cedar. Entrance to a drive-in facility
and parking area also w ill be located
on Cedar giving the bank an over-all
frontage of 154 feet on Cedar Street.
Two drive-up windows and a walkup facility also w ill be installed. The
installm ent loan department w ill have
a separate entrance on the side of the
A. Moorman and Company of Min­
neapolis is architect for the building.

that G. W. Beddows, cashier of the
Sanborn County Bank, Woonsocket,
South Dakota, had died.
The report should have read that
Mrs. Beddows had died.

H . F. K n u tso n R etires

N ew A .B .A . O fficer

Harold F. Knutson, a vice president
of the Rapid City head office of the
First National Bank of the Black
Hills, has retired after more than
20 years w ith the bank.

B on d S ales Lag
September sales of U. S. Savings
Bonds in South Dakota continued to
follow the pattern set earlier this
year w hen E and H monthly sales
fell below those of last year. Total
September purchases were $1,461,769,
pushing the grand total for 1962 to
$16,524,841 for 53.5 per cent of the
state’s goal.

T w o N ew B an ks O p en
Oscar Brosz, s u p e r in t e n d e n t of
South Dakota banks, reports the open­
ing of two new banks during Octo­
ber: The Valley State Bank at Yank­
ton and the Tri-County State Bank of
Capital account of the Yankton
banks totals $300,000. Officers are
Erling Haugo, president; Dan Stuelpnagel, vice president, Charles W.
Peterson, cashier, and Arlene Devick
and Robert Hersrud, assistant cash­
The Tri-County State Bank was
moved from Kimball to Chamberlain
and now a branch has been estab­
lished at Kimball by the Tri-County
State. Capitalization of the new banks
is $200,000 common capital, $200,000
surplus, and $76,000 undivided prof­
its. Offices are L. B. Cronholm, presi­
dent; C. C. Natvig, vice president; H.
O. Ekeland, executive vice president,
and Fred M. Houda, cashier.

J. F. P e sc h o n g R etires
J. F. “Fritz” Peschong, vice pres­
ident of the Miner County Bank and
president of the Miner Insurance
Agency, retired recently from both
positions after 45 years in banking
and insurance.
M. Monroe Kimbrel, president of
the A.B.A., announced recently that
Robert H. Frei, president, Commer­
cial State Bank, Wagner, has been
named to serve as ABA vice presi­
dent for South Dakota for the 19621963 Association year.

W all C on stru ction
Plans are underway for the con­
struction of a new bank building in
Wall, S. D.
In the near future Wall w ill become
headquarters for the former Under­
wood State Bank, N ew Underwood,
and a branch is being established at
New Underwood. The New Under­
wood bank formerly maintained an
office in Wall.
The re-organized bank w ill be under
the management of Delbert Sebade.
W. A. Joyce continues as vice presi­
dent. Bob Emery, former manager of
the Buffalo Gap branch of the South
era Hills Bank of Edgement has been
named manager of the New Under­
wood branch of the re-organized bank.

M orristow n C hange
The First Security Bank, Morris­
town, S. D., has been sold to the
Union Credit Corporation of Pierre,
S. D. Controlling interest formerly
was held by John Vucerevich of Rapid
W. E. Schirber, Lemmon; F. N.
Emch, McIntosh; G. P. Meurer, Mor­
ristown; and Edgard Gardner, Buf­
Officers elected are W. E. Schirber,
president; F. N. Emch, vice president
Northwestern Banker, November, 1962
Federal Reserve Bank of St. Louis




N ews

S .lt./t.A . Youth

American National Bank and Trust
Company, Rapid City, according to
an announcement by A. E. Dahl,
chairman of the board. He succeeds
Phil Zastrow who resigned to accept
another banking position. Mr. Theisen had been assistant manager since
the branch was opened in 1960.


J oin s C uster B ank



Ivan Johannsen has joined the Cus­
ter County Bank, Custer, S. D., as
assistant cashier. He comes to Custer
from Blue Earth, Minn., where he
was cashier and manager of the insur­
ance department at the First National
Bank for five years.

N ew Y an k ton D rive-In
FINANCIAL EDUCATION w as th e th em e of th e S o u th D a k o ta B a n k e rs A sso c ia tio n 's
first E conom ic C o n feren ce f o r Y oung A d u lts spo n so red in c o o p e ra tio n w ith P a u l S.
A m idon & A sso c ia tes, In c ., o f M in n e ap o lis. N e a rly 130 h ig h school s tu d e n ts a tte n d e d
th e c o n fere n c in H u ro n . P a r tic ip a n ts in th e c o n fere n ce in clu d e d , fro m le f t. A. S.
Gullickson, e x e c u tiv e s e c re ta ry of th e SD B A ; Isabel Giddings of P a u l S. A m idon an d
A sso c ia tes, In c .; C. F. Stilgebouer, SD B A p re s id e n t; Richard Holtz of P a u l S. A m idon
a n d A sso c ia tes, In c .; a n d C. C. Lind, im m e d ia te p a s t p re s id e n t o f th e SD BA .

and cashier; E. D. Katus, and Enid
Neumiller, assistant cashier.
Mr. Schirber, Quentin Benson and
Mr. Neum iller w ill be associated with
the main office at Morristown. Mr.
Emch and Mr. Katus w ill be asso­
ciated w ith the branch bank at Mc­

Plans also
in McIntosh
the building

were announced for the
of a new bank building
and for enlargement of
at Morristown.

H ot S p rin g s C hange
Nick Theisen has been named man­
ager of the Hot Springs branch' of the

The First Dakota National Bank,
Yankton, S. D., has opened its new
drive-in window. A building, about
6 by 16 feet in size, was constructed
for the new facility at the back of the
bank parking lot. The area between
the facility and the main bank build­
ing is covered w ith a canopy, and a
tunnel connects the unit with the


M ove to D e S m e t
Norman Steen, formerly assistant
cashier at the First National Bank in
Clark, S. D., has joined the Peoples
State Bank, DeSmet, where he w ill


Prompt; complete
assistance on all
correspondent needs


Credit Analysis
Clearing of Items
Trust Services
Pension and Profit
Sharing Plans

N orthw est
South Dakotas Largest

N o r t h w e s t e r n Banker, N o v e m b e r ,



o) Sioux Falls


Banking Facilities
Federal Reserve Bank of St. Louis





have both insurance and banking
Mr. Steen formerly headed the in­
surance department at the Clark bank.

N ew V e r m illio n O fficer
Eugene W. Houda has been ap­
pointed vice president and executive
officer of the Citizens Bank in Ver­
million. For the past six and one-half
years Mr. Houda was a bank exam ­
iner w ith the Federal Deposit Insur­
ance Corporation, working under the
Chicago office and living in Cherokee,
Mr. Houda’s brother, Fred, is cash­
ier of the Bank of Kimball, and his
father was a banker in Springfield
and Kimball.

and 80 feet long. It will feature a 24foot drive off Main Street for drive-in
banking facilities, according to B. M.
Kratzer, vice president and manager.
Bookkeeping facilities, utilities, a com­
m unity room and kitchen facilities
w ill be located on the second floor of
the two-story building. Parking for
29 cars w ill be provided behind the
building. Another feature w ill be an
after-hour depository.
Completion is expected sometime
next summer.

S io u x F alls R e m o d e lin g

Work on the new First National
Bank building in Selby, S. D., is near­
ing completion. Construction began
last fall, continued through the winter
as weather permitted and was re­
sumed last spring.

W estern State Bank, Sioux Falls,
has begun work on an expansion and
remodeling program. The enlarged
facilities w ill include new offices, a
new directors’ room, new teller facili­
ties and an enlarged officers’ area.
C. D. Gregg, executive vice presi­
dent, announced that completion date
has been set for November 30, date of
the bank’s third anniversary. An open
house is being planned for the last
week in November.

G regory C on stru ction

C o m m issio n G ives C hanges

S elb y C o n stru ctio n

Construction started last month on
the new Northw est Security National
Bank building in Gregory, S. D.
The structure w ill be 60 feet wide

Oscar Brosz, s u p e r in t e n d e n t of
banks in South Dakota, reported com­
m ission approval of the following ac­




The Farmers and Merchants State
Bank, Plankinton, has converted its
Class “A ” office in W hite Lake to a
branch bank. The Citizens State Bank
of Clark converted its Class “A” office
in W illow Lake to a branch bank.
The Farmers State Bank, Winner, has
been given authority to do trust com­
pany business.
The following increases in capital
stock also were approved:
Farmers and Merchants State Bank,
Plankinton, from $50,000 to $100,000;
Citizens State Bank, Clark, from $50,000 to $100,000; Miner County Bank,
Howard, from $50,000 to $75,000; First
State Bank, Armour, from $66,000 to
$100,000; Farmers State Bank, Dupree,
from $50,000 to $100,000, and Farmers
State Bank, Kransburg, from $20,000
to $25,000.

D eaths R ep o rted
A. S. Gullickson, executive secre­
tary, South Dakota Bankers Associa­
tion, has r e p o r te d the following
Johnathan J. Waltner, president,
First National Bank, Freeman, and
Mrs. Conrad Morgan of Waubay. Mrs.
Morgan was the w ife of Conrad Mor­
gan, president of the State Bank of

F u n w a s in th e a ir a t
F a lc o n S ta d iu m

The Central was mighty happy to have
so many of our correspondent friends at the Air Force-O regon game
and with us throughout the day. It’s always a delightful occasion
for us when we can get together.
Remember, when Central carries the ball, you always score with speed.
C entral’s on your team all the way!

Member: F.D.I.C.
Federal Reserve System




C O .

N o r t h w e s t e r n B an ke r, N o v e m b e r ,
Federal Reserve Bank of St. Louis


First National in Linton in the book­
keeping department.

N o r th lia k o l a

A IB F o ru m , S em in ar






I t ’s D e c e m b e r 6 -8

N U B A At/ Credit Conference
LANS are

now complete for the
Credit Conference, De­
cember 6-8, at Gardner Hotel, Fargo.
Advance registration forms already
have been sent to the state’s bankers.
The Conference gets underway the
evening of December 6 (Thursday)
w ith an informal social hour from
7 to 9 p.m., at the hotel.
Highlights the following day, Fri­
day, December 7, are featured speak­
ers, panels, discussion periods on ag
credit problems, competition and pro­
cedures, and an interesting luncheon
session with Col. M. C. Fredericks,
who commands the 455th Strategic
Missile Wing, and who w ill show
slides and discuss the state’s m issile
complex. A social hour and banquet
Friday evening features an address
by President Albrecht, North Dakota
State University.
A morning session only is planned
for Saturday and this will feature con­
tinuing discussion and presentation of
ag credit problems, policies and proce­

D e v ils L ake C eleb ation
The Ramsey National at Devils
Lake recently celebrated its 70th an­
niversary w ith a two-day birthday
party. Fred C. Hoghaug, president,
along w ith the other officers, directors
and em ployees were hosts to a big
Highlights were special prizes for
those guests who had the same birth­
day month, September of 1892, as the

Us e C h r i s t m a s


bank. Also popular were good coffee
and cake and souvenirs for all.

H erbert W . C larkson
Herbert W. Clarkson, 86, board
chairman of the Liberty National of
Dickinson, the First National of Het­
tinger, in North Dakota, and the
Bank of Belle Fourche, in South Da­
kota, died last month in Bennet
Clarkson Memorial Hospital, to which
he had previously given approxi­
m ately $100,000.
Mr. Clarkson had also gained ex­
tensive cattle ranch holdings in South
Dakota and oil w ells in Texas. He
formerly had owned a chain of thea­
ters. He was better known the past
ten years for his generous gifts to
hospitals, homes for the aged and
educational institutions.

N ew D ir e cto r at F argo
James W. Crowe, of Bergstrom &
Crowe Furniture Company, has been
elected a director of the Fargo Na­
tional to succeed his father, George
W. Crowe, who has served the bank
as director for more than 24 years,
and who is now an honorary director.

J o in s M erchan ts N ation al
David Gordon, graduate of the Uni­
versity of North Dakota, who passed
the North Dakota Bar examination in
July, has been named attorney with
the trust department of the Merchants
National Bank & Trust of Fargo, an­
nounces A. O. McLellan, president.
Raymond B. Strand, assistant cash­
ier, Merchants National, has accepted
transfer for the First Trust Company
of Great Falls, Mont., another affili­
ate of the First Bank Stock Corpora­
tion. W ith the Merchants National
since 1942, he was elected assistant
trust officer in 1951 and assistant cash­
ier and assistant trust officer in 1957.

M oves to L in to n P ost
Fi ght TB a n d O t h e r
Respiratory Diseases
N o r t h w e s t e r n Banker, N o v e m b e r , Ì 962
Federal Reserve Bank of St. Louis

Duane Mastel, recent graduate of a
business course at Bismarck Junior
College, has joined the staff of the

The first forum and seminar of the
Missouri Valley Chapter of A.I.B. was
held last month at the Montana-Dakota U tilities Company’s Heskett
plant north of Mandan.
C. E. Mitchel, farm representative,
Dakota National of Bismarck, is
chairman of the forum. Other bank­
ers playing a prominent part in pre­
paring the sessions were: Bill Krue­
ger, First National of Mandan; Ed
Steinbrueck, Mandan Security Bank;
Dick Tobin, First National of Bis­
marck; Reuben Sayler, Bank of North
Dakota, Bismarck, and Don Olson,
State Bank of Burleigh County, Ster­

E lected N ew L eip zig O fficer
A. J. Huber, formerly president of
the Fairview Bank in Fairview, Mont.,
has accepted the executive vice pres­
idency of the First State Bank of
New Leipzig. He succeeds E. P. Dan­
iels, who recently resigned. Mr Huber
also has served as Grant County audi­
tor (in the 1930’s) and operated a
general lines insurance agency at
Flasher until 1950.

O p en s B an k at B ism arck
The Burleigh County State Bank of
Sterling has established a new Cen­
tral Bank at Bismarck. Officers and di­
rectors plan to maintain a station at

B an k o f N o rth D ak ota
A n n o u n c e s P r o m o tio n s
C. Christie Bantz, formerly assist­
ant manager of the credits depart­
ment, has been promoted to manager
of that department, and R. E. Sailer,
formerly of the loan department, has
been promoted to assistant manager
of the credits department, at the
Bank of North Dakota, Bismarck.
Officers of the bank now are, in
addition to the two named above:
George M. Thompson, acting manager;
W. H. Bement, cashier; R. S. Jordahl,
auditor; Dave C. Kierland, manager,
transit department, and R. A. Birdzell,

H ead s N a tio n a l C on test
Homer W. Ludwick, vice president,
First National Bank & Trust of Fargo,
has been appointed general chairman
for the National Plowing Contest to
be held in North Dakota in 1964.
Mr. Ludwick is a foiuner executive
vice president of the Greater North
Dakota Association and also of the
Fargo Chamber of Commerce.

N orth

SO U TH W EST GROUP ( l e f t ) m e e tin g in D ic k in so n , e le c te d th e
fo llo w in g : (fro m le f t) A rthur H. D avis, v ice p re s id e n t, L ib e rty
N a tio n a l, D ic k in so n , m em b er o f th e s t a te n o m in a tin g c o m m it­
te e ; Chris D ahl, a s s is ta n t vice p re s id e n t, D a k o ta N a tio n a l, B is­
m a rc k , p re s id e n t; E dw ard D ahlen, e x e c u tiv e v ice p re sid e n t,
L ib e r ty N a tio n a l, v ice p re s id e n t; a n d E dw ard V u k elic, assist-

N o rth

N ew s

a n t c ash ie r, C om m ercial B a n k , M o tt, s e c re ta ry . N O R T H W E S T
G R O U P ( r ig h t) , m e e tin g in W illisto n , ele cte d , fro m le ft, W. S.
Raymond, p re s id e n t, C itiz en s S ta te , R ay , v ice p re s id e n t; John
Banker, p re sid e n t, C itiz en s S ta te , M ohall, p re sid e n t.
W ith
th e m is O. V. Stenehjem , vice p re sid e n t, F i r s t In te r n a tio n a l,
W a tfo rd C ity, o u tg o in g p re sid e n t.

City; Jim Collinson, First National
at D evils Lake; Charles Kalil, Amer­
ican State, and Irv Severtsen, First
National, at W illiston, and Art Davis,
Liberty National at Dickinson.
After the program of speakers, new
officers were elected and the meetings
were concluded w ith a social hour and
Here are the newly-elected officers:
S ou th east Group (at Valley City) —
A. K. Simpson, vice president, Mer­
chants National of Fargo, president;
R. T Carley, president, Casselton
State Bank, vice president; Gordon H.
Weber, president, Farmers State of
Lisbon, secretary, and R. Paul Peder­
son, executive vice president, First
State of Hope, member of NDBA
nominating committee.
N ortheast Group (at Devils Lake) —
Phillip MacMillan, president; McVille,
State Bank, president; John Engesather, cashier, Citizens State of
Petersburg, vice president; Edward L.

N O R T H E A ST GROUP, m e e tin g in D e v ils L a k e , e le c te d th e fo l­
lo w in g : (fro m le f t) A rthur F leck ten , p re s id e n t, F r a y to n S ta te ,
m em b e r o f s ta te n o m in a tin g c o m m itte e ; E. L. Olson, v ice p re s i­
d e n t, F i r s t N a tio n a l, G ra n d F o rk s, s e c re ta ry ; P h illip M acM il­
lan, p re s id e n t, M cV ille S ta te , p re s id e n t; John E ngesath er, c a sh ­
ier, C itiz en s S ta te , P e te rs b u rg , v ice p re sid e n t. W ith th e m is

Olson, vice president, First National
of Grand Forks, secretary, and Arthur
Fleckten, president, Drayton State
Bank, member of NDBA nominating
N o rth w est Group (at W illiston)—
John Banker, president, Citizens State
of Mohall, president; W. S. (Fritz)
Raymond, president, Citizens State of
Ray, vice president; Frank A. Grim,
cashier, Farmers State of Crosby,
secretary, and Wayne A. Stroup,
president, Garrison State Bank, mem­
ber of NDBA nominating committee.
S o u th w est Group (at D ickinson)—
Chris Dahl, assistant vice president,
Dakota National of Bismarck, presi­
dent; Edward Dahlen, executive vice
president, Liberty National of Dickin­
son, vice president; Edwin Vukelic,
assistant cashier, Commercial Bank
of Mott, secretary, and Arthur H.
Davis, vice president, Liberty Nation­
al of Dickinson, member of NDBA
nominating committee.

A. M. Eriksm oen, e x e c u tiv e v ice p re s id e n t, D a k o ta N a tio n a l,
F a rg o , N D B A p re sid e n t. R IG H T : N D B A officers a t th e N o rth ­
w e st m e e tin g in clu d e d , fro m le ft, V. J. H egeholz, E n d e rlin ,
second vice p re s id e n t; O. K. Anderson, D a k o ta , first v ice p re s ­
id e n t; E. M. Eriksm oen, F a rg o , p re sid e n t, a n d B ill Daner, B is­
m a rc k , e x e c u tiv e s e c re ta ry .
N o r t h w e s t e r n B an ke r, N o v e m b e r ,
Federal Reserve Bank of St. Louis


Italiota Group Neu- O fficers

ORTH DAKOTA bankers turned
out in record numbers at last
m onth’s group m eetings at Devils
Lake, Dickinson, Valley City and
W illiston, to hear Harold G. Peterson,
assistant vice president, N orthw est­
ern National of Minneapolis; David
Boies, trust representative, First Na­
tional of Minneapolis, and A. M. Eriksmoen, NDBA president.
Mr. Peterson discussed investm ents,
Mr. Boies talked about bank profitsharing plans and Mr. Eriksmoen, ex­
ecutive vice president, Dakota Na­
tional of Fargo, discussed the Asso­
ciation’s activities and plans for fu­
ture action.
All four m eetings were held on
consecutive afternoons—October 2 at
the Valley City Elks Lodge, October
3 at Devils Lake Country Club, Oc­
tober 4 at the W illiston Elks Club and
October 5 at the Liberty National
Bank in Dickinson. Arrangements
chairmen for the m eetings were:
Walt Bauer, First National at Valley





No problem is too large with our new
3 omputer Center
Pictured above are the components of our new NCR 315 Computer Center. This new

high-speed electronic system can add, subtract, multiply, divide, even “ read" magnetic tapes.
! hr ;w * 1.0 k n
' :C- .
■■ ■b , i ■!•;■ -I-. ■:!
- ìm Uk - ki: ::
-, usO Ì.1
the computer system. Eventually, it will perform in other areas of the bank’s data-processing needs.
To us, installation of our NCR 315 Computer Center will be a boon to bank
bookkeeping. To you. it proves we intend to provide the best in
service, so there’s good reason to say . . .

th a t's th e b a n k fo r m y m o n e y r

r.*t V'..': P


N o r t h w e s t e r n Banker. N o v e m b e r, T962
Federal Reserve Bank of St. Louis



D e n v e r 17, C o l o r a d o


( oliirailo-Wyoniìii^ \«*w s
E. H. ADAMS, Denver
Colorado Bankers Assn.

V. EASTMAN, Thermopolis
Wyoming Bankers Assn.

D enver D an k H osts F o o tb a ll P a rtii
ORE than 850 bankers and their
fam ilies were guests of the Cen­
tral Bank and Trust Company of
Denver at the bank’s annual football
party for correspondent banks.
Eighteen buses carried the guests
from Denver to the Air Force Acad­
em y near Colorado Springs for the
dedication of Falcon Stadium and for
the Air-Force-Oregon football game.
Other highlights of the afternoon in­
cluded a demonstration by the Air
Force precision flying team, the Thunderbirds.
Follow ing the game, guests were
taken back to Denver for a social hour
and dinner. Special entertainm ent
from the music department of Den­
ver U niversity rounded out the day’s


New D e n v e r E x e c u tiv e
Hal E. Roof has been appointed ex­
ecutive vice president of The Cherry
Creek National Bank of Denver, ac­
cording to Weldon B. Hamilton, pres­
Mr. Roof, w ell known for his work
in establishing the installm ent loan
department at the Central Bank and
Trust Company in the late 1940’s,
most recently was associated with
Alsco of Colorado as chairman of
the board and executive vice presi­

In his new position, Mr. Roof w ill
assume the responsibiliites and au­
thority of the office of executive vice
president. One of his primary assign­
ments w ill be to further the con­
tinuing growth of the bank through
increased loan and deposit business.

F eatu red S p ea k er
Elwood M. Brooks, chairman of the
board of The Central Bank and Trust
Company, and president of the Na­
tional Society for Crippled Children
and Adults, was the featured speaker
at the annual convention of the Ne­
braska Society for Crippled Children.

D e n v e r P r o m o tio n s
Melvin J. Roberts, president, an­
nounced that the board of directors of
The Colorado National Bank, Denver,
named one new officer and promoted
another at their regular monthly
William W. Grant was promoted
from assistant vice president to vice
president in charge of the services
division of the banking department.
Donald J. Horst was named an assist­
ant trust officer for the bank. Mr.
Grant will head a division of the bank
specializing in banking relations.
Mr. Grant, who has been with the
Colorado National for four years, was
formerly with Bankers Trust in New

HOST a t tlie C e n tra l B a n k a n d T ru s t F o o tb a ll P a r t y w as Max
G. Brooks, p re s id e n t, show n a t le f t w ith Gordon M. Ibbotson,
C olorado d e p u ty s ta te tr e a s u r e r a n d Gordon Jones, p re sid e n t,
B a n k o f B ra d y , N e b ra s k a . Show n a t r ig h t a re Byron Wilson,

York City. He graduated from Yale
U niversity in 1954 and did graduate
work in the School of Business at
New York University.
Mr. Horst has been w ith the Colo­
rado National for two and a half years.
Before joining the bank’s trust depart­
ment, he spent three years in the
U. S. Air Force. Mr. Horst graduated
from Colorado U niversity in 1956 with
combined degree in business and law.
He is a member of the Denver and
Colorado Bar Associations.

W yom ing Xptrs
B u ild in g D rive-In
The old Provident Federal Building
is being razed in Casper to make
room for a drive-in banking facility
for the First National Bank.
The bank is erecting four drivein windows at the site with the
drive-through area extending from
Center to Walcott. A second story to
the building also may be erected.

C asper C o n stru ction
Riedesel-Reiman of Cheyenne was
the low bidder at $233,400 for the
construction of a new Security Bank
and Trust Company in Casper, Wyo.
The new building w ill be located at
W alcott and Midwest.
Five firms submitted bids for the
construction of the one-story brick
building of 6,700 square feet, base­
ment, two drive-in windows and a
parking lot for 35 cars.
Construction is to begin in early

On R aw lin s B oard
H. T. “Ted” Neuman, president of
Neuman Transit Company in Raw­
lins, Wyo., has been elected to the
board of directors of the Rawlins
National Bank, it was announced by
John W. France, president.
Mr. Neuman fills the vacancy cre­
ated by the death of E. A. Durant.

p re sid e n t, P a lis a d e s N a tio n a l, P a lis a d e s, Colo.; Mrs. Wilson;
Mrs. Don F. Delano, Curtis B. Mateer, e x e c u tiv e vice p re sid e n t.
P ie rre N a tio n a l B a n k , P ie rre , a n d Don F. Delano, v ice p re s i­
d e n t, C e n tra l B a n k a n d T ru st, D en v er.
N o r t h w e s t e r n Ba n ke r, N o v e m b e r,
Federal Reserve Bank of St. Louis


tion. Mr. Nolan has been w ith the
bank since it opened in 1957.

M o n ta n a

J o in s N .W . B an co







J o in s G reat F a lls B an k
W illiam G. W estrum of Helena,
Mont., has joined the installm ent loan
department of the Great Falls Na­
tional Bank. He has been w ith that
department of the First National Bank
of Helena.

O n A .B .A . C om m ittee
Harrison W. Daniels, vice president,
M id la n d National Bank, Billings,
Mont., has been appointed a member
of the installm ent credit committee
of the American Bankers Association.
He w ill serve as chairman of the
advisory board for the committee in
the Ninth Federal Reserve District.

A .B .A . O fficer
Claude Erickson, president, Living­
ston State Bank, Livingston, Mont.,

Do your

ß U e a fo

have questions about

Custom Duties in

Custom duties are highlighted in
“ Y o u r G u id e to B u s in e s s in
C a n a d a ” a lo n g w ith fa c ts on
Canadian taxes, how to form a
business in Canada and other
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letterhead for this new 48-page
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B a
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San Francisco: 333 California St.
Chicago: 141 West Jackson B iv i
Head Office: Montreal

RESOURCES EXCEED $3,300,000,000
N o rth w e s te rn


N ovem ber,
Federal Reserve Bank of St. Louis

has been appointed vice president of
the American Bankers Association for
Montana. He succeeds J. D. Street,
president, Bozeman Security and
Trust Bank.

Arthur F. Rossberg, vice president,
Great Falls National Bank, Great
Falls, Mont., has accepted a post as
assistant vice president of the North­
w est Bancorporation in Minneapolis.
He w ill serve as a liaison man work­
ing w ith Northwest Bancorporation
affiliates in developing and servicing
real estate mortgages.
He had been affiliated with the Great
Falls bank since 1951, most recently
as head of the installm ent loan de­

R ob ert E. T ow le

N ew L e n d in g O fficer






R. C. Wallace, secretary of the Mon­
tana Bankers Association, reported
that Robert E. Towle died suddenly
last month in Helena.

O n R u d yard B oard
Marlin Spicher, a farmer near Hingham, has been elected a director of
the Farmers-Merchants Bank at Rud­
yard, Mont. He succeeds the late
Rudolph B. Peterson, according to
Richard D. Rubie, president.

F ort B e n to n C hange
Donald C. Ritter, president of Pio­
neer Mercantile, has been elected to
the board of directors of the First
Chouteau County Bank, Fort Ben­
ton, Mont., to fill the vacancy left by
the death of John T. Lepley in June.

H a m ilto n P r o m o tio n
Earle C. Wright, assistant cashier,
has been promoted to assistant cash­
ier and auditor at the Citizens State
Bank, Hamilton, Mont. He assumes
the duties of Ralph B. Robinson, Jr.,
who died earlier this year.
At the same time it was announced
that Don McGourty has joined the
staff to assume Mr. W right’s duties
as manager of the auto and personal
loan department. Mr. McGourty for­
merly was assistant manager of the
First Montana Finance Company of

L eaves M issou la B an k

n t r e a l


Paul S. Gillespie has resigned as
president and member of the board
of directors of the Southside National
Bank, Missoula, Mont. Donald E.
Nolan was advanced from vice pres­
ident and cashier to succeed Mr. Gil­
lespie. John Peterson was promoted
from assistant cashier to cashier.
Mr. Gillespie said that the press of
other affairs prompted his resigna­

Robert L. Pasby has been appointed
lending officer of the Central Bank of
Montana, Great Falls. Mr. Pasby
opened Builders Mortgage and Loan
Company in Great Falls in 1960, spe­
cializing in local real estate and



D ep o sit M achine
ANKOGRAPH, a fast, automatic
deposit system, was shown to
bankers attending the American Bank­
ers Association Convention by The
Mosler Safe Company.


Bankograph a c c e p t s deposits of
checks, paper currency, and change,
making a photographic copy of the
deposit. At the same time, the unit
photographs the accompanying de­
posit slip. W hen the transaction is
completed, the machine returns one
copy of the validated deposit slip to
the depositor.
At the end of the day, checks and
cash are proved against deposit slips.
In the event of a discrepancy, the de­
posit slips may be checked against
the photographic record of the de­
W hen placed in a bank lobby, ac­
cording to John Mosler, president of
The Mosler Safe Company?, Banko­
graph w ill relieve conquestion at
regular tellers’ positions during peak
hours by accepting deposits without
requiring tellers’ time. In many cases,
he said, Bankograph may be used for
after hours deposits or for off prem­
ises banking.
Bankograph is manufactured by Reflectone Electronics, Incorporated, a
subsidiary of Universal Match Corpo­
ration, and sold nationally by The
Mosler Safe Company. Further infor­
mation on Bankograph is available
from The Mosler Safe Company, 320
Park Avenue, New York 22, N. Y.











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N o r t h w e s t e r n Ban ker, N o v e m b e r ,
Federal Reserve Bank of St. Louis










It’s easy when you pull together
. . . whether the job is simple or complex. We’re eager to help you in your
search for answers to all of your banking problems. We know that the more
help we provide to the banks of this area, the faster they’ll progress. And the
faster our area correspondents succeed, the faster we’ll grow, too! □ For
example, we’ll be happy to make suggestions and recommendations to help
you solve any systems and procedures problems you may have. You can
put our long experience to work for you just by mentioning it to a man from
the U. S. National. Whether your question deals with systems and pro­
cedures, or any other banking problems, he’ll see that you get accurate and
prompt information. Call on U. S. anytime — 341-8765 — Omaha.
M e m b e r F e d e ra l D e p o sit In s u ra n c e C o rp o ra tio n .

N o r t h w e s t e r n Banke r, N o v e m b e r ,
Federal Reserve Bank of St. Louis



R ation al
m m m m r


L E F T — Don Jackson, v.p., I r v in g T ru st, N e w Y o rk ; Carl Carl­
son, a.v.p., M a n u fa c tu re rs H a n o v e r, N ew Y o rk , a n d Carl Bloom,
a.v.p., 1 st N a tio n a l, O m aha. E IG H T — David M. Molthrop, con­
v e n tio n sp e a k e r fro m N a tio n a l S m all B u sin e ss A sso c ia tio n ,

W a sh in g to n , D. C.; Balph E. Misko, N e b ra s k a d ire c to r o f b a n k ­
ing, a n d Lyman M. Stuckey, new N B A p re s id e n t a n d pres.,
L e x in g to n S ta te .

H oldin g Com panies . C redit Unions
Get N eb ra sk a B a n k ers A tten tio n

y e a rs’ w ork and the legislature w ill
be asked to adopt the Code du rin g its
com ing session in Lincoln.

vice presidency to succeed B. D. Berkheim er, presid en t of th e F irs t N ation­
al B ank of Gordon, w ho becom es im ­
m ediate p ast president.
E lected for a th ree year te rm as
tre a s u re r w as E. T. T anner, vice p resi­
d e n t of the F irs t N ational B ank of
M em bers elected to th e executive
council, all for th re e year term s, were:
G roup 1 — Otto Kotouc, Jr., p resi­
dent, H om e State Bank, H um boldt.
G roup 3 — Adon Jeffrey, president,
F irs t N ational Bank, W ayne.
G roup 5 — R euben G ustafson, p resi­
dent, F irs t S tate Bank, H ordville.
K roup 6—A. C. Peterson, president,
F irs t S tate Bank, Lodgepole.

P resid en t B erkheim er said it had
been voted by com m ittee to consoli­
date th e B ank M anagem ent C onfer­
ence at Crete, th e A gricu ltu ral C redit
m eeting and the In stallm en t C redit
C onference into one conference n ex t
June. The three-day m eeting w ill be
held on th e cam pus of Doane College
in C rete w ith each of th e above
groups h aving a p a rt in th e confer­
ence. A special featu re w ill be a
m anagem ent “gam e” of plan n in g com ­
p u te r operations and program m ing
specific b an k functions on IBM com ­
p u te r equipm ent. Those at th e con­
ference w ould be tak en in groups by
bus to Lincoln in the evenings, w here
in sm aller groups of eight or 10 m en
th e y w ill w o rk on these problem s.

AN K ER S atte n d in g th e 65th an ­
nu al convention of th e N ebraska
B ankers A ssociation in L incoln last
m o n th h ad p le n ty to talk about —
b an k holding com panies, b ran ch b a n k ­
ing, credit unions, and ta x inequities.
A ll of th ese m atters, as w ell as new
association program s, w ere discussed
on and off th e p latfo rm for th e 1,100
persons re g iste re d for th e last fall
convention of th e NBA. As a n ­
nounced previously, a n n u al conven­
tions now w ill be held in th e spring,
so an o th er convention w ill be held six
m onths from now.


18-Month Term of Office

In keeping w ith th is decision, L y ­
m an Stuckey, p resid en t of th e L exing­
ton S tate B ank at L exington, w as
elected for an 18m o n t h te rm and
id en t u n til th e ann u a 1 convention
in th e sp rin g of
as vice p resid en t
fo r th is p e rio d
w ill be N. T. Tiem a n n , p resid en t
of th e Commere t t a n n e r
m e rc ia l S t a t e
B ank at W ausa.
Mr. S tuckey w as advanced from the

P ictu red on th e fro n t cover are
Mr. and Mrs. L ym an M. Stuckey.
Mr. Stuckey is th e new ly elected
p resid en t of th e N ebraska B ankers
A ssociation and w ill serve u n til
th e an n u a l convention in th e sp rin g
of 1964. H e is p resid en t of th e L ex­
in g to n S tate B ank in L exington.
Federal Reserve Bank of St. Louis

P resid en t’s R eport

B usiness sessions the first day of
th e convention w ere held in H otel
C ornhusker. P resid en t B. D. Berkh e im e r’s address w as th e first order
of b u siness and he announced th a t
th e executive com m ittee m eeting in
session ju s t p rio r to th e convention
h ad voted
to in
stru c t th e NBA legis­
lative com m ittee to d raw up a bill to
be p resen ted to th e N ebraska legisla­
tu re th is com ing session th a t w ould
p ro h ib it th e form ation of b ank hold­
ing com panies. He said th is action
w as based on resu lts of a poll con­
ducted by th e association to determ ine
view s of th e m em bership on th is sub­
ject. R esults show ed 312 banks op­
posed to b ank holding com panies, 35
in fav o r and 10 expressing no opinion.
The o th er 67 banks did n ot reply.
Mr. B erkheim er rep o rted th a t close
cooperation h ad been carried on b e­
tw een th e N ebraska B ankers Associa­
tion and N ebraska B ar A ssociation on
a proposed bill th a t w ould give N e­
b rask a a new U niform Commercial
Code. T his is th e re su lt of several

P lan J oin t Conference

The group m eetings and clearing
house m eetings w ill be continued, Mr.
B erkheim er said. The la tte r m eetings
are im p o rtan t because of w ork th a t
can be accom plished w ith sm aller
groups. He said th is show s th e de­
sirab ility of hav in g the additional help
now available th ro u g h the new a ssist­
an t secretary, W m. H. O sterberg, w ho
w as added to the staff last F e b ru a ry

NEW v ice p re s id e n t of th e N B A is N. T.
Tiemann, p res, o f C om m ercial S ta te B a n k ,
W au sa, p ic tu re d a b o v e w ith M rs. T iem an n .
N o r t h w e s t e r n Ban ker, N o v e m b e r ,





L E F T — Lee L. Loerch, v.p. & cash., 1st N a tio n a l, T e k a m a h ;
Robert D. Iske, p res. & cash, o f S p rin g field S ta te , a n d H. D.
Shellenberger, Jr., a.c., T he O m aha N a tio n a l. C E N T E R — Harold
E. Roe, pres., B a n k o f B e n n in g to n , a n d Eldridge B. Scurr, v.p.,

to assist th e secretary, H. V. Osterberg.
T ells L eg isla tiv e P lan s

State B anking D irector R alph Misko,
in his a n n u al address to th e conven­
tion, cited various recom m endations
he w ill m ake to th e com ing un icam ­
eral legislatu re for changes in b a n k ­
ing laws of th e state. T hese include
personal loans on real estate; recom ­
m ending th a t stockholders be p e r­
m itted to borrow from th e ir own
banks th e legal lending lim it for cus­
tom ers; perm ission for b anks to p u t
an am o u n t equal to 100 p er cent of
th e ir capital into a b an k building, as
w ell as p e rm ittin g state b anks to hold
stock in a building co rporation from
w hich th e y lease; m aking certain deci­
sions of th e d ep artm en t of b an k in g
subject to th e rig h t of appeal, a proc­
ess not now available oth er th a n on le­
gal m atters, and one th a t w ould p ro ­
vide a “safety v alv e” for state banks;
req u irin g th a t th e m ajo rity of a state
b a n k ’s board of directo rs be resid en ts
of N ebraska; perm ission for officers
and em ployees to borrow up to $2,500
from th e ir ow n b an k w ith approval of
th e board of directors, and no bo rro w ­
ing lim it except th e legal lim it for
those officers not active in th e day-today m anagem ent of th e bank; chang­
ing detached teller facility law to
p erm it b an k s in tow ns u n d er 5,000
a u th o rity to have such facilities (p res­
en tly confined to b an k s in tow ns over
U nited States Senator Carl T. C urtis
of N ebraska w as given a w arm w el­
come. H is review of th e new ta x bill
adopted by Congress ap pears in the
featu re pages of th is issue.
H its Credit U nions

David M. M olthrop, com m untiy ed­
ucation co n su ltan t for th e N ational

Northwestern Banker, November, J962
Federal Reserve Bank of St. Louis

C hiles & Co., O m aha. E IG H T — Harold Browning, v.p., IT. S.
N a tio n a l, O m ah a; Howard Hanson, Jr., v.p., H e rm a n S ta te , an d
Chuck Hall, C o n tin e n ta l Illin o is N a tio n a l, C hicago.

Sm all B usiness A ssociation, W ashing­
ton, D. C., proved to be a real stemw in d er as the final speaker for the
first day. His b last a t th e unbridled,
unsu p erv ised grow th of credit unions
w as paced in such a w ay as to shake
any b an k er in th e audience loose from
his leth arg y concerning th is subject.
AVith the challenge th a t he w ill de­
bate any union official, credit union or
cooperative official at any tim e, any
place, he proceeded to display an u n ­
d erstan d in g of this grow ing th re a t to
com m ercial ban k in g th a t m ust have
opened th e eyes of m any bankers.
He said th a t in the period from
1939-43 credit unions filled a void th a t
b an k s failed to fill. The credit u n ­
ions th e n developed fu rth e r into the
area of com m ercial banks th ro u g h the
sm all loan route. He said coop lead­
ers have gained control of credit u n ­
ions and have co n stan tly been m oving
into th e field of big banking. He said
credit unions have expanded from
$700 m illion in assets in 1953 to $6.6
billion in 1962.
F air T axation N eeded

If cred it unions w an t to operate in
th e financial system of this country,
Mr. M olthrop said, th en th ey should
be placed u n d er pro p er supervision as
th e ir com petitors are, and be m ade to
pay th e ir fair share of taxes, w hich
th e y are now not doing. He said one
ru le th a t should be established and
enforced is th a t credit union m em bers
should have a common em ployer not
ju st a com m on bond.
P ay m en t of p roper taxes is a cru ­
cial issue, he em phasized. He sug­
gested th a t one w ay to b rin g hom e
p ay m en t of taxes to th e public w ould
be to have each person receive all his
y early incom e in one lum p sum, th en
have to pay out federal taxes in one
lum p sum, state taxes likew ise, and
people w ould th en realize th e ex ten t
of th e ir taxes. “T hen,” he suggested,
“we ought to have an election the
n e x t day.”
R ural Credit U n ion s

He told N ebraskans he w as tired of
helping pay th e ir electric bills th ro u g h

his taxes, since th ere are no p rivate
pow er com panies in the state. F u r­
th e r encroachm ent on an in d ividual’s
taxes w ould be made, he said, if Secre­
ta ry of A griculture F reem an w as suc­
cessful in giving $500,000 to a cam ­
paign to tell th e 20 m illion people of
ru ra l A m erica of th e advantages of
ru ra l credit unions. T his plot first
came to light last Ja n u a ry w hen Mr.
F reem an in stru cted his D irector of
A g ricultural C redit to take necessary
steps to im plem ent a program of ex­
pansion of ru ra l credit unions.
He said p riv ate in d u stry th a t gives
credit unions on-prem ise services free
of charge is helping su stain a program
th a t is in direct com petition w ith com­
m ercial ban k s w hich rep resen t p ri­
vate enteprise. He called on ban k s to
join the N ational Small B usiness A s­
sociation, w hich carries on a national
program to b rin g a tten tio n to these
inequities and seeks th e ir correction
th ro u g h ap p ro p riate legislation so
th a t all w ho com pete in the financial
field w ill com pete fairly and pay ju st
The business session w as concluded
th e first day w ith election of officers
and adoption of resolutions. Lee L.
Loerch, vice p resid en t and cashier at
F irs t N ational, Tekam ah, presented
the com m ittee’s nom inations report
and all officers as presented w ere
elected, as noted above.
R eso lu tio n s A dopted

George R ainbolt cashier of th e
F irs t N ational, McCook, read th e re ­
p o rt of th e resolutions com m ittee.
R esolution V called for the elim ina­
tion of tax inequalities, p articu larly
of governm entally created and taxsheltered or tax exem pt in stitu tio n s
com peting w ith banks b u t not bound
by banking restrictions.
R esolution VI called for continued
efforts to a tta in still m ore equitable
tax atio n of savings and loan in stitu ­
R esolution V II said 85 p er cent
of th e m em bership particip ated in an
association poll on b an k holding com-




L E F T — R e tirin g N B A P re s id e n t B. D. Berkheimer, p res., 1st
N a tio n a l o f G ordon, re ce iv e s P a s t P r e s id e n t’s p in fro m W. F.
Wenke, pres., a t P e n d e r S ta te . E IG H T — H. D. Kosman, pres.

of S c o ttsb lu ff N a tio n a l ( l e f t ) , a n d Mr. Berkheimer ( r ig h t) v is it
w ith a d is tin g u is h e d g u e st sp e a k e r, U. S. Senator Carl T. Curtis
o f N e b ra s k a .

L E F T — John McCumber, sr. v.p., S to c k Y a rd s N a tio n a l of
O m a h a; G. V. Keller, exec, v.p., a n d T. S. Cummings, v.p., b o th
w ith L e x in g to n S ta te , a n d Cecil W. Means, v.p., S to c k Y a rd s
N a tio n a l o f O m aha. E IG H T — Gene C. Eaton, sr. v.p., N a tio n a l

B a n k of C om m erce, L in c o ln ; Henry Gramann, Jr., v.p., A dam s
S ta te ; Win Buckley, a.c. & ag. rep., N a tio n a l B a n k of Com­
m erce, L in c o ln ; Don Delano, v.p., C e n tra l B& T, D e n v er, an d
J. H. Oliver, pres., R a v e n n a B a n k .

L E F T — F. L. Ferrell, p re s., N e b ra s k a S ta te a t O shkosh ; Herb
Echtermeyer, v.p., T he O m aha N a tio n a l, a n d Louis Stolte, p res.,
C om m ercial B a n k a t S tr a tto n . E IG H T — (s e a te d ) Walter E.
Nolte, exec, v.p., 1st N a tio n a l B&T, L in c o ln ; Lester E. Souba,

p re s., U ly sses S ta te , a n d Charles Novak, p res., B a n k o f B ra in erd. ( S ta n d in g ) Dale Shoemaker, v.p., I s t N a tio n a l B&T, L in ­
coln, a n d William Placek, v.p., I s t N a tio n a l, W ahoo.

L E F T — Charles K. Richmond, v.p., A m e ric a n N a tio n a l, S t.
Jo s e p h , M o.; Rex Miller, v.p., N a tio n a l B a n k o f C om m erce, L in ­
coln, a n d G. W. Shafer, Jr., pres., F i r s t S ta te a t B e a v e r C ity.

R IG H T — Henry Gramann, Jr., v.p., A dam s S ta te ; Ed W. Lyman,
p rè s., U . S. N a tio n a l B a n k , O m ah a; Virgil E. Warren, exec.
v.p., & cash., A u b u rn S ta te , a n d Joe Haller, C hiles & Co., O m aha.
N o r t h w e s t e r n Ban ker, N o v e m b e r ,
Federal Reserve Bank of St. Louis





L E F T — Jim Morris, v.p., 1st N a tio n a l, D e n v e r; Walter Stroud,
exec. v.p. & cash., B a n k of H y a n n is ; George Alff, v.p., D e n v er
U. S. N a tio n a l, D e n v e r; Clyde Sudman, p res., G u a rd ia n S ta te a t
A llia n c e ; Gene Tamillo, v.p., C o n tin e n ta l Illin o is N a tio n a l, C hi­

panies and 87 p er cent of th e p a r­
ticipants voted ag ain st th e form ation
of b ank holding com panies in N ebras­
ka. It th e n stated th e executive
council and P a st P resid en ts A ssocia­
tion of th e NBA had passed a m otion
directing th e legislative com m ittee to
d raft a suitable bill for th is purpose,
and called on th e NBA m em bership
to su p p o rt th is bill actively w hen it
is presen ted in th e 1963 legislature.
R esolution V III endorsed again the
dual system of banking, stated th ere
is a m ovem ent w hich could elim inate
this dual system , and called on th e
NBA to reaffirm its position in sup­
p o rt of th e dual system of banking.
All resolutions w ere passed u n a n i­
m ously.
Meet in N ew B u ild in g

A ctivities of th e second day w ere
conducted in th e beautiful, new Ne-

cago, a n d H. H. Broadhead, Jr., v.p., F i r s t S to c k Y a rd s B a n k ,
S t. Jo se p h , Mo. B IG H T — John Pavich, p re s, of N e b ra s k a N eon
S ig n Co., L in co ln , w ith Mrs. Schneider a n d Max Schneider,
v.p., F i r s t N a tio n a l B&T, L in co ln .

b rask a C enter for C ontinuing E duca­
tion. N ebraska b an k ers had a special
in te re st in th is stru c tu re for the
original plan for its construction w as
p resen ted to N ebraska ban k ers at
th e ir convention in Lincoln in 1958.
B ankers took a leading p a rt in ra is­
ing th e necessary funds th ro u g h o u t
th e state and co n trib u ted ap proxi­
m ately 18 p er cent them selves of the
n early $1 m illion in funds collected.
The m atching g ra n t from th e Kellogg
F ou n d ation com pleted th e am ount
n ecessary to p u t up the building.
A fter b reak fast in th e spacious
au d ito riu m as guests of Lincoln
banks, re g istra n ts adjourned to the
th e a te r section for th e business pro­
gram . S ecretary O sterberg gave de­
tails of the com bined B ank M anage­
m en t Conference to be held in Crete
n ex t June.
Two N ebraska U n iv ersity stu d en ts

Municipal and Corporate Bonds
Listed Stocks
Unlisted and Local Stocks

412 Farm Credit Building

1321 P Street

P hone 346-6677

P hone H E m lock 2-3324

Ernst & Bieck Building

999 East 6th Street

Northwestern Banker, November, 1962
Federal Reserve Bank of St. Louis

gave brief talk s on th e foreign stu ­
dent program in A m erican u n iv ersi­
ties. One w as Tom Kotouc, a son of
Otto Kotouc, Jr., presid en t of the
H om e S tate B ank a t H um boldt. He
did an excellent job in presen tin g his
talk. Dick W eill w as the other s tu ­
dent. Both proved them selves at ease
on th e p latform and fine speakers.
A.B.A. E lection

A t th e m eeting of NBA m em bers
of th e A m erican B ankers Associa­
tion, presiding officer w as N. T.
T iem ann, presid en t of th e Com m ercial
State at W ausa and vice presid en t of
th e A.B.A. for N ebraska. Mr. Berkheim er w as elected a m em ber of the
A.B.A. nom inating com m ittee for
n ex t year. A ltern ate is M inor P. Baird,
presid en t of th e F a rm e rs State at
R, D uane Saunders, director of the
Office of Debt A nalysis of th e U nited
States T reasury, p resen ted a talk
titled, “The P ractical A pplication of
F ed eral Debt M anagem ent Objec­
tives.” He used num erous color ch art
slides to show th e breakdow n of the
national debt and issues of securities
sold in various m arkets.
F in al speaker w as W illiam H. H.
“T ippy” Dye, N ebraska U n iv ersity ’s
director of athletics. He introduced
th e head football coach and his staff
as w ell as coaches of the v arious other
sports sponsored by th e university.
The convention w as concluded w ith
a buffet luncheon at H otel C ornhusker
ballroom .
The evening ban q u et the first day
of th e convention w as again a big
success and w as followed by an ex­
cellent p rogram of e n tertain m en t fu r­
nished by the husband-w ife team of
D oraine and Ellis. T heir m usical re ­
vue of A m erican stage play songs
w as w ell received by the en tire audi­
ence. —End.














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Ban ke r, N o v e m b e r ,



Omaha News

H A REH O LD ER S of The O m a h a Q
N ational B ank w ere to m eet N o -i^
vem ber 9 to vote on a stock split p ro ­
posal. D irectors called th e m eeting
last m onth to ask shareh o ld ers to ap­
prove sp littin g th e b a n k ’s o u tstan d in g
shares one for four, increasin g th e
b a n k ’s capital from $8 m illion to $10
m illion. A 25 p er cent stock dividend
th en w ould be approved according to
th e board proposal. T hus th e nu m b er
of sh ares o u tstan d in g w ould be in­
creased from 400,000 to 1,000,000.
The board also announced its in te n ­
tion to p ay a 24 cents p er sh are divi­
dend in Decem ber, 1962, and to estab­
lish a re g u la r q u a rte rly dividend ra te
of 21 cents p er sh are com m encing in
M arch, 1963, if shareh o ld ers approve
th e stock sp lit and dividend. The
p resen t dividend rate, ad ju sted to th e
proposed new stock basis, is 20 cents
per sh are per q u arter.

D. W. R yan, vice presid en t of th e
F irs t N ational Bank, has been ap­
pointed to the A.B.A. in stallm en t cred­
it com m ission by M. Monroe Kim brel,
A.B.A. president.



E d w in N. Van H orne, ch airm an of
Van H orne In v estm ents, Inc., re ­
tu rn e d to his desk late last m onth
a fte r recovering from a collapse suf­
fered October 6 du rin g the N ebraskaIow a S tate football gam e in Lincoln.
Mr. Van H orne w as hospitalized for
a sh o rt tim e, th en a fter a brief period
a t home, retu rn ed to w ork October 22.
Don R. Ostrand, vice presid en t of
th e F irs t N ational Bank, recently w as
elected to a tw o-year term on the
board of directors of th e Douglas
C ounty U nit of th e A m erican Cancer

Omaha National Goes Electronic
SPEC IA L press conference w as
held la st m onth a t The Om aha
N ational B ank to introduce th e new ­
est m em ber of th e b a n k ’s expanding
staff. He w as described by B oard
C hairm an W. B. M illard, Jr., as pos­
s e s s i n g considerable sophistication
and one w ho fully m erits th e special
rem odeling th a t w as done to provide
him w ith an ex tra large, glass-en­
closed office.
H is perform ance pleased Mr. Mil­
lard and o th er officials of th e b ank as
well as draw in g praise from rep o rters
w ho are accustom ed to seeing ju st
about an y th in g happen.
He has now been introduced to all
custom ers of The Om aha N ational
th ro u g h special m ailings as “Mr.
1401,” b u t to th e staff he is know n
officially as th e IBM 1401 system , or
m ore in tim ately as “th e m asterm in d .”
The new system is sim ilar to th a t
found in o th er large banks, including
the 1401 processing unit, th e 1402 cardread punch, th e 1412 read er-so rter and
th e 1403 p rin te r. T he big difference


N o r t h w e s t e r n Banke r, N o v e m b e r ,
Federal Reserve Bank of St. Louis


in The Omaha N ational’s installation
is th e addition of four 7330 m agnetic
tape units. T hrough th e 7330, all in ­
form ation channeled th ro u g h the sys­
tem can be recorded and stored on
m agnetic tapes th a t store data at the
ra te of 556 ch aracters per inch and
a t th e speed of 36 inches p er second,

or a total of 20,016 characters per sec­
ond. E ach tape reel contains th o u ­
sands of transactions.
A fter Mr. M illard “introduced” Mr.
1401, H ow ard M. Johnson, vice p resi­
dent in charge of operations, told
new sm en of th e problem s banks face
in processing checks at the rate of 13
billion p er year, w ith a potential vol­
um e of 22 billion w ithin a few y e a rs’
tim e. The “h e a rt” of th e 1401 system
for banks is th e 1412 reader-sorter, he
As ban k ers know, th is p a rt of the
equipm ent reads all p ertin e n t infor­
m ation from checks, deposit slips or
o th er docum ents being processed, by
m eans of MICR, and feeds th is infor­
m ation into the 1401. All inform ation
is funneled th ro u g h the 7330 m agnetic
tape u n its for storage and th e 1403
p rin te r is in stru cted to p rin t out a
h ard copy of any p rin ted inform ation
N oting th a t th e installation w as the
first com plete system operative in a
N ebraska bank, Mr. Johnson said the
first step w as tak en six y ears ago
w hen punch-card equipm ent w as ac­
quired to handle as m uch w ork as
possible. The second step cam e in
1958 w hen all checking accounts w ere
num bered and custom ers w ere asked
to use these nu m b ers in addition to
th e ir signatures. T he 1401 w as o r­
dered by Mr. M illard late in 1961 and
delivered a few w eeks ago as the
th ird step in a continuing program of
im provem ent in the operations de­
p artm ent.
The equipm ent w ill perform m any
tasks, Mr. Joh n so n said, b u t can do
no th in g m ore th a n w h at it is in ­
stru cted to do by th e h u m an person­
nel operating it. To get the m anpow er
for th is dem anding task, th e bank
searched its own staff and hand-picked
four m en w ho w ere sent to com puter
N E W EQ U IPM EN T . . .

(T u rn to page 92, please)

Eugene Kidder a n d Bruce E. Barks, a.c.’s, d iscuss w o rk p ro g ra m fo r 7330 ta p e m achine
w ith Howard M. Johnson, v.p., o p e ra tio n s.


Newest Member of our
ext time you’re in Om aha, be sure to
come in and meet “ Mr. 1401 ”— the new
“ whiz-kid” of the Omaha National Bank.


1401“ reads and sorts up to 900 checks a
m in u te—^and can m ake as m any as
3,300, eight-digit computations a second!
He stores endless details in his fantastic

He can’t mop the floors or wash the win­
dows, but he's mighty handy around the
bank. If we wanted him to, he could pro­
gram a flight to the moon, or tell one of
our vice-presidents his chances of staying
out of the rain.

minutes with just the push of a button.

But that's not why we hired him.

1401 Data Processing System. Come in and

He's here to c o n q u e r the p ro b lem s of
mounting paper work. For example, “ Mr.

watch “Mr. 1401 ” at work, next time you’re

“ memory system ’ ’ — and can p ro d u ce
amazing amounts of specific information in

No other bank in N eb raska has such a
com plete electronic system as the IBM

in Omaha.

The Om aha National Bank
Member Federal Deposit Insurance Corporation
Federal Reserve Bank of St. Louis

N o r t h w e s t e r n Ban ke r,






Nerv a t North Bend

INTERIOR VIEW of th e new q u a rte rs o f th e P l a tt e V a lle y B a n k , N o rth B end, N e b r.
T he g ra n d o p e n in g o f th e new q u a rte rs w a s re p o rte d in th e N O R T H W E S T E R N B A N K ­
E R la s t m o n th .

G rand Islan d B u ild in g
C onstruction of th e new Com m er­
cial N ational B ank B uilding in G rand
Island, Neb., w as sta rte d recently.
The new building is being con­
stru cted ad jacen t to th e b a n k ’s p res­
en t drive-in facility. E d w ard H uw aldt,
president, said th a t if w ea th e r condi­
tions are favorable th e new building
should be com pleted in about one
year. The stru c tu re w ill m easure 88

feet on T hird S treet and 100 feet on
Cedar. P ark in g will be provided at
th e re a r of th e building. The m ain
b anking floor w ill include 10 teller
window s, a cu sto m ers’ w aitin g lounge,
a safety deposit vault, and an in terio r
garden. A com m unity room is planned
for th e low er level.
E x te rio r w ill be of brick and glass
w ith black g ran ite colum ns fram ing a
silver and gold solar screen on the
south and w est elevations.

N B A C om m ittees at W ork
Com m ittees of th e N ebraska B ank­
ers A ssociation are h ard at w ork p lan ­
n ing activities of the association in
th e com ing m onths.
The legislative com m ittee, u n d er
C hairm an J. R. K enner, presid en t of
th e T hayer County B ank at H ebron,
m et in Lincoln October 25. T his com­
m ittee w ill presen t a bill to th e N e­
brask a lag islature early in 1963 for
adoption of th e U niform Com m ercial
Code. T his m ajor project has been
u n d er intensive stu d y by th e NBA in
cooperation w ith th e N ebraska Bar
A ssociation for several years.
The com m ittee also will p resen t a
bill seeking to ban ban k holding com ­
panies from N ebraska. This is in line
w ith the w ishes of th e m em bership as
noted in th e convention story in this
issue. The com m ittee also w ill take
up an y o ther m atters p e rtin e n t to
b anking in terests th a t come up in the
nex t negislative session.
Mr. K en n er’s com m ittee consists of
eight other bankers, one from each of
th e six groups, plus one from Lincoln
and one from Omaha.
N ovem ber 8 M eeting

A jo in t m eeting of seven com m it­
tees w ill be held T hursday, N ovem ber
8, sta rtin g at 9:45 a.m. in th e Yancey
H otel a t G rand Island. These com ­
m ittees are: A gricultural, ban k m an ­
agem ent, education, group in su ran ce
and pensions, in surance and protec­
tion, public relations, and installm en t
credit. T he session w ill last u n til ap­
proxim ately 3:30 p.m.
S ervice Study C om m ittee

The NBA Service Study Com m ittee
w as appointed by Im m ediate P ast
P resid en t B. D. B erkheim er as one of
his last official functions before leav­
ing office last m onth. C hairm an is E d
Cosgriff, ch airm an of th e City N a­
tional B ank at H astings. The com m it­
tee is m ade up of tw o ban k ers from
each group, plus tw o from Omaha and
tw o from Linioln. It w ill study all
facets of b anking including holding
com panies, b ran cn banking, and finan­
cial services perform ed by banks in
th e public in terest.
L eg isla tiv e D in ners

Follow ing th e N ovem ber election,
all state legislators elected a t th a t
tim e w ill be invited to a tten d one of
36 legislative din n ers planned by the
N ebraska B ankers A ssociation for rep ­
resen tativ es of th e sta te ’s 43 districts.
The ch airm an for each of th e 36 din­
ers is being selected from the district
in w hich th e m eeting w ill be held.
These din n ers w ill enable b ankers to
become acquainted w ith th e ir state
legislators, as w ell as affording an op­
p o rtu n ity to discuss b an k m atters th a t
m ay come up in the legislature.
N o r t h w e s t e r n Banker, N o v e m b e r ,
Federal Reserve Bank of St. Louis



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Patio Bank at 10th and O / Drive-in at 12th and P
Federal Reserve Bank of St. Louis

N o r t h w e s t e r n B an ke r, N o v e m b e r , 1962

Mr. N ielsen form ely w as vice p resi­
dent and Mr. Iske w as vice p resid en t
and cashier.

G resham C ashier a S u icid e
As E x a m in er W alks in B ank


E E L. SOM M ERHALDER has re ­

signed as vice p resid en t of th e
N ational B ank of Com m erce to be­
come executive vice p re sid e n t of th e
F a rm e rs S tate B ank a t A urora. Mr.
Som m erhalder had been w ith th e N a­
t i o n a l B a n k of
Com m erce e i g h t
years, w o rk in g in
s e v e ra l d e p a rt­
m e n t s p r i o r to
h i s ap p o in tm en t
tw o y ears ago as
head of th e in ­
vestm en t d e p a r t ­
m ent.
G le n n Y a u s s i,

p resid en t of N a­
t i o n a l B a n k of
Commerce, said the in v estm en t com­
m ittee of the bank, m ade up of sen ­
ior officers, w ill continue to be headed
b y R obert W ek esser, senior vice p re s­
ident. R obert R. H ans w ill continue
as an in v e stm e n t officer handling
daily duties in th is departm en t.
Mr. S om m erhalder w ill join Ed Coblentz, p resid en t of F a rm e rs State, in
m anagem ent of th a t bank. Mr. Coblentz recen tly w as elected p resid en t
follow ing th e sudden d eath of G. K.
D . L.

W aldron.
* * *
George W. Barlow , Jr., has been ap­

pointed a ssista n t cashier of th e F irst
N ational B ank and T ru st Company,
according to an an n ouncem ent m ade


recently by Burnham Yates, president
of th e bank.
Mr. B arlow joined F irs t N ational
B ank and T ru st Com pany as a parttim e em ployee w hile attain in g his B.S.
degree in business ad m in istratio n at
th e U n iv ersity of N ebraska. A fter
grad u atio n he spent 17 m onths w ith
the U. S. A rm y. In April, 1958, Mr.
B arlow re tu rn e d to Lincoln and the
F irs t N ational B ank and T ru st Com­
pany to p ursu e his career in the field
of banking.

G eorge S. L yon
George S. Lyon, 76, president, R ich­
ardson C ounty Bank, F alls City, Neb.,
died last m onth a t the C om m unity
H ospital in Falls City.

S ey m o u r O p en H o u se
More th a n 700 persons to ured the
com pletely rem odeled Seym our State
Bank, Seym our, Neb., du rin g an open
house recently. Door prizes consisted
of a $50 and a $25 U nited States Sav­
ings Bond and several $5 aw ards.

A rth u r W alford, 73, cashier of the
G resham State B ank at Gresham , com ­
m itted suicide w ith a shotgun in th e
re a r room of the bank October 22 as
S tate B ank E x am in er F. H. Pochop
entered the fro n t door. Im m ediate in ­
v e s t i g a t i o n d i s c l o s e d a “sizeable”
shortage and a m ore detailed exam ina­
tion pegged the defalcation in the
neighborhood of $468,000.
David Yung, 93, presid en t of the
hank, w ho h ad unlocked the door to
adm it Mr. Pochop, said the bank is
not in su red w ith FDIC. Mr. W alford
had seen Mr. Pochop step from his
car, and as Mr. Yung w ent to unlock
th e front door to adm it him, Mr. W al­
ford w ent to the back room and shot
him self, fhe sheriff reported.
S tate B anking D irector R alph E.
Misko said no d eterm ination has been
m ade conclusively y et as to w hat h ap ­
pened to the money. He said if p re ­
lim inary exam inations are correct, “all
th e b a n k ’s capital, surplus, undivided
profits and fidelity bonds would be
exhausted to m eet obligations.”
The Ju n e statem en t of condition
show ed assets of $722,731, liabilities of
$681,931 and capital accounts of $103,799. The re p o rt w as signed by Mr.
Yung, Mr. W alford and Vice P resident
and D irector H. I. H ylton of York.
It appeared th a t the defalcation had
accum ulated over a long period of
J V e w

S i f f i t

S p r in g fie ld C hanges
Follow ing th e death of T aylor J a r ­
m an, p r e s i d e n t , Springfield State
Bank, Springfield, Neb., the following
officers w ere elected:
Otto N ielsen, chairm an of the board;
R obert D. Iske, presid en t and cashier,
and Jam es P. Latham , vice president.



Municipal Bonds


1001 "O " Street

Stitt Building

Lincoln, Nebraska

Hastings, Nebraska

N o r t h w e s t e r n Banker, N o v e m b e r ,
Federal Reserve Bank of St. Louis


THIS new e le c tric tim e a n d te m p e ra tu re
sig n has b e en in s ta lle d a t th e First Na­
tional Bank of Tekamah b y N e b ra s k a
N eon S ig n C om pany of L in c o ln . The u p p e r
p a n e l is fo u r b y six fe e t, f e a tu r in g re d
le tte r in g on w h ite p le x ig la s. T he low er
p a r t re v o lv e s a n d has a b la c k b a c k g ro u n d
w ith lig h te d tim e a n d te m p e ra tu re re a d in g
in 18 in ch h ig h n u m era ls.

O n e o f a s e rie s fe a tu rin g the la d ie s b e h in d


th e m en you k n o w a n d w o rk w ith a t
F irst N a tio n a l

First National






One of the seasoned veterans attending group
m ee tin gs and state co n ven tio n s is Eleano r
Schneider, whose husband, Max, has been asso­
ciated with the bank since 1929. Her youthful
attractiveness and engaging smile coupled with
her warm personality make her one of the favor­
ites in any setting.
Eleanor’s career as a homemaker for husband,
Max, and their 14 year old son, Kurt, occupies
most of her time. However, she is able to sandwich
into her schedule a goodly number of hours each

year devoted to volunteer hospital work at Lin­
coln’s Bryan Memorial Hospital. Most of her lei­
sure hours are spent with her favorite hobby . . .
flower gardening. Although she does not specialize
in raising any one particular variety of plantings
or flowers, she confesses her favorites are tulips
and other bulb type plants.
When winter sets in, Eleanor finds time to do
extensive reading which lends a great deal to her
very interesting charm.

Federal Reserve Bank of St. Louis

N o r t h w e s t e r n Ba n ke r, N o v e m b e r ,





Columbus Bunk Conducts Open House

SPLIT LEVEL LOBBY is a n u n u su a l fe a tu r e of th e new F i r s t
N a tio n a l B a n k a n d T ru s t C om pany b u ild in g in C olum bus, N e b r.
T he u p p e r level, re a c h e d b y th e s ta irw a y show n a t rig h t, is
o ccupied b y th e officers. P a y in g a n d re c e iv in g w in d o w s are
show n a t f a r rig h t. A w alk -u p w in d o w is lo c a te d n e a r th e
f r o n t door. T he new b u ild in g h as tw o la rg e s e c u rity v a u lts ,

5 0 t h A n n iversary
P aul L angenberg, president, F irs t
N ational Bank, W althill, Neb., w as
honored recen tly on his 50th an n iv e r­
sary w ith th e bank. A d in n er p a rty
in his honor m ark ed th e event.

H ead s C ou nty B an k ers
W allace E. Rose, Jr., executive vice
president, E xchange B ank in Gibbon,
Neb., has been elected p resid en t of th e
Buffalo C ounty B ankers Association.
Ron Bycroft, vice p resid en t of the
E xchange Bank, w as nam ed secretarytreasu re r.

H ead s H a rriso n B an k
Ted K ing has been nam ed p resid en t
of the Sioux N ational B ank, H arrison,
Neb. He joined th e b a n k last M arch
and is succeeding V. E. M arsteller,
w ho re tire d recently, as president.
L illy L arsen is vice p resid en t and
cashier, and Joe W h itak er is assistan t

each m e a su rin g 17 b y 32% fe e t, w ith one above th e o th e r. N e a r­
ly 7,000 p e rso n s a tte n d e d open house a t th e new b u ild in g . The
b a n k now is in th e process of c o n stru c tin g a d riv e -in f a c ility
acro ss th e a lle y fro m th e new b u ild in g . I t w ill be c o n n ec te d
to th e m a in b u ild in g b y p n e u m a tic tu b e s.

The board now includes H. E. Hall,
chairm an; W. E. Mumby, E. E. W hiteaker, A rth u r From , Mr. K ing and
Miss L arsen.
Mr. K ing cam e to th e H arriso n b ank
from A lliance w here he had been ag ri­
c u ltu ra l co n su ltan t and an officer at
th e A lliance N ational Bank.

T o p s $ 1 M illio n M ark
The State B ank of Chester, Neb., re ­
cently m arked th e reaching of $1 m il­
lion in assets. The b an k opened in
1950 w ith assets listed at $413,898.90.

A sk H astin gs C harter
An application for a new b an k in
H astings, Neb., has been received by
th e S tate D epartm ent of Banking, ac­
cording to R alph Misko, director.
C harles T. V oorhees and Associates
of H arv ard, Neb., filed th e application.
The new b an k w ould be know n as the
H astings S tate Bank. Proposed cap­
ital accounts consist of $175,000, di­
vided into $50,000 capital, $75,000 su r­

plus and $50,000 undivided profits.
H astings now has tw o banks: The
City N ational and th e F irst N ational.


N ew F rem o n t P resid en t


Dale Ball, form erly executive vice
president, has been elected president
of th e F irs t N ational B ank in F re ­
m ont, Neb. He succeeds F ran cis R.
O rshek w ho died recently. Mr. Ball
has been executive vice p resid en t of
th e b an k since Jan u ary , 1960.

T o B u ild at B lair
Follow ing th e g ran tin g of approval
to m ove th e H erm an State B ank to
Blair, Neb., officers of th e H erm an
b ank announced plans for th e con­
stru ctio n of a new ban k building in
A ctual construction is to get u n d er­
day this fall. The new building w ill
occupy th e corner of 19th and W ash­
ington Streets. A drive-in facility is
to be included, b u t full details of th e
building have n ot been announced.





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Federal Reserve Bank of St. Louis


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Omaha, Nebraska




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CONVENTION SPEAKERS show n fro m l e f t to r ig h t: Gen.
Mark Clark, pres., T he C ita d e l; Geo. Spence, A m e ric a n N a tl.
B k. & T r., C h icag o ; Walter P. Marshall, p res., W e s te rn U nion,

N ew Y o rk ; Dr. Robt. Samp, U n iv e rs ity o f W isco n sin , M ad iso n .
a n d David Rockefeller, pres., C hase M a n h a tta n B k., N ew Y ork.

Era of Change Stressed bg
Speakers a t Mourn Convention
P r e s id e n t
E d ito r
OWA b an k ers had th e seriousness
of a global w ar th re a t firm ly im ­
pressed on th em last m onth w hen th e
C uban crisis eru p ted d u rin g th e ir 76th
an n u al convention in Des Moines.
T hey got a first-hand re p o rt on th e
trea c h e ry of R ussia and th e com m u­
n ists from G eneral M ark C lark (U.S.A.
R et.), w ho th re w aw ay his p rep ared
m an u sc rip t and b arreled into th e Reds
in a h ard -h ittin g speech in w hich he
su p p o rted th e action of P re sid e n t K en­
nedy and stated th a t R ussia recog­
nizes only force and will back aw ay
w hen it is exhibited.
The ten sen ess of th e w eek w as fu r­
th e r b ro u g h t hom e w hen tw o of the
p ro m in en t sp eakers on th e program
had to cancel th e ir appearance be­
cause th e y w ere directly involved in
th e g o v e r n m e n t m an eu v erin g in
W ashington and th e U nited N ations.
U nable to ap p ear w ere Io w a’s U. S.
Senator B ourke B. H ickenlooper, who,
as a m em ber of th e com m ittee of 17
C ongressm en on tap for such em er­
gencies, w as recalled to W ashington,
and th e Hon. F ran cis T. P. P lim pton,
d ep u ty re p re se n ta tiv es of th e U nited


P ictu red on th e fro n t cover are
Mr. and Mrs. H erb L. Ollenburg.
Mr. O llenburg w as elected p resi­
d en t last m onth of th e Iow a B ank­
ers A ssociation for a te rm of one
year. He is p resid en t of th e H an ­
cock C ounty N ational B ank at
G arner.
Federal Reserve Bank of St. Louis

States to th e U nited N ations, w ho re­
ceived o rders to rem ain in New Y ork
w ith A m bassador Stevenson.
Opinion of the record 4,838 persons
w ho reg istered for the m eeting w as
solidly in favor of th e action show n
by th e blockade of Cuba.
T he new high in reg istratio n w as
reached w ith 2,535 m en atten d in g and
2,303 ladies registered. The 1961 total
w as 4,518.
The sp eakers covered a div ersity of
topics d u rin g th e th ree days of m eet­
ings, w ith th e in te re st of Iow a b an k ­
ers in g ettin g such a broad perspective
evidenced by th e large attendance at
every session. If any com m on th read
could be selected as ty in g all the
speeches to g eth er it w ould be the one
em phasizing “change” — changes th a t
have tak en place in farm ing, business
and banking, and m ore im portantly,
changes th a t are posed for the future.
A t th e 14th A nnual A gricultural
B reak fast Conference, w hich took up
th e first half-day of the convention,
th is e m p h a s i s on “change” w as
b ro u g h t out by n early every speaker.
H erb ert B. H ow ell, extension econo­
m ist at Iow a S tate U niversity, Ames,
said: “F a rm in g today is a dynam ic
and changing business. Only farm ers
w ho recognize th is tre n d are w illing
to m ake changes and ad ju st to changeing tim es w ill survive. B ankers and
people w ith lending in stitu tio n s are
going to have to keep up w ith these
changes. T hey m u st provide a credit
fram ew o rk th a t fits in w ith th is new
kind of Iow a ag ricu ltu re.”

T hom as R. Sm ith, executive vice
p resident of F irs t N ational Bank,
P erry, gave one of th e best received
talk s in the 14-year histo ry of these
ag ricu ltu ral breakfasts. F o r his talk,
he assum ed th e p a rt of a co u ntry
b an k ’s com petitor w ho is seeking in ­
creased business from the v ery people
w ho are, or should be, custom ers of
the local bank. He wove into his talk
the m ethods used by m any of these
com petitors w ho get up early, w ork
late, m ake all kinds of loans and are
“h u n g ry ” enough to actively solicit
E. H ow ard H ill, p resid en t of the
Iowa F a rm B ureau Federation, told
b ankers th e K ennedy ad m in istratio n ’s
efforts in agricu ltu re are attem p ts to
p u t stric t controls on farm ers, thus
in terferin g w ith priv ate enterprise,
the system th a t has bu ilt farm ing and
business alike to its p resen t peak.

1962-63 OFFICERS
President—H. L. Ollenburg ( l e f t ) , p res.,
H a n co c k C o u n ty N a tl. B a n k , G a rn er.
Vice President—J. H. Pullman, Jr. ( r ig h t) ,
pres., F re m o n t C o u n ty S av. B a n k , S idney.

Executive Council (3 -y ca r te r m ) — E . F .
Buckley, chm n., C e n tra l N a tl. B&T, Des
M oines.

Nominating Committeeman—Ted J. Welch,
p res., P eo p les B&T, C e d ar R ap id s.
Alternate—Gordon L. Mennen, pres., LeM a rs S av. B a n k .
N o r t h w e s t e r n Ban ker, N o v e m b e r ,



Io w a N e w s

L E F T — John Mangold, v.p., M e rc h a n ts N a tl., C ed ar R a p id s, a n d
Bill Werner, v.p., U n ite d H om e B k., M aso n C ity, look on as
Glenn Ingle, U. S. S av. B onds dir., e x p la in s space capsule. C E N ­
T E R — Max Roy, v.p., L a S a lle N a tl. B k., C hicago, p o in ts to
ro c k e t d isp la y as Dee Sutherland, pres., F i r s t N a tl., M a n n in g ,

Carl G. Breeze, p resid en t of th e
B ank of K rem m ling, Colo., w ho w as
elected p resid en t of th e A.B.A. state
h an k division recently, discussed “Cat­
tle P ro d u cer — and F eed er Outlook.”
He predicted th e price of cattle w ill
hold up over th e n e x t few years. If
th e m a rk e t does slip, he stated, b e tte r
quality cattle w ill hold up best. C ur­
re n t prices are w h ere th e y should be,
based on production costs, he added.
“If prices go up,” Mr. Breeze w arned,
“beginners w ill e n te r th e m arket.
B ankers can play an im p o rta n t p a rt
in th is resp ect.”
Mr. Breeze gave th e follow ing v alu a­
tion p er head for cattle d u rin g the
p ast 95 years: 1867—$19.60; 1900 —
$26.40; 1933—$17.78 (low for th e cen­
tu ry ); 1956 — $88.10, and 1962 — $140.
He expects th e over-all price in th e
1960’s to be even h ig h er due to th e
increased population and h ig h er wage
George H. Spence, ag rep re se n ta tiv e
for A m erican N ational B ank and
T ru st Company, Chicago, talk ed on
“The Im p o rtan ce of th e C attle F eed ­
ing In d u stry to th e Econom y of
Iow a.” H e show ed th e p a rt th is in ­
come plays in th e to tal farm incom e
of th e state and th e dependence of
o th er sectors of th e econom y on th e
success of cattle feeding.
C harles H. W alcott, p resid en t of th e
S ecurity N ational B ank in Sioux City,
presided th ro u g h o u t th e convention as
p resid en t of th e Iow a B ankers Asso­
ciation u n til th e final m orning w hen
his successor, H erb L. Ollenburg, w as
elected p resid en t for 1962-63. Mr. W al­
cott, in his p re sid e n t’s address, also
em phasized th e im portance of cattle
to Iowa, p a rtic u la rly th is year, and
expressed th e hope th a t too m any
farm er-feeders w ould n o t go over­
board in buy in g prices. H e also called
N o r f h w e s t e r n Banke r, N o v e m b e r , 1962
Federal Reserve Bank of St. Louis

a n d Christy Armstrong, v.p., A m er. T r. & S av., D u buque, in sp e c t
it. R IG H T — Chas. Walsh, p re s., F a rm e rs & M erch . S a v . B k.,
B u rlin g to n , a n d Ed Ebersole, v.p. & cash., S t. C e n tra l S av. B k.,
K e o k u k , w e re “ sh o t” n e a r th e la u n c h in g p ad .

on Iow a ban k ers to take an objective
look a t suggestions being m ade for
changes in b anking regulations by the
C om ptroller of th e C urrency and o th ­
Mr. W alcott personally m ade a m o­
tion to adopt a resolution he presented
for th e endorsem ent by th e IBA of
H a rry W. Schaller, presid en t of the
Citizens F irs t N ational B ank of Storm
Lake, for election as a director of th e
F ed eral R eserve B ank of Chicago. The
m otion w as seconded by several and
u n an im o usly passed. Mr. Schaller is
a p ast p resid en t of the IBA. He is
seeking election to th e directorship
now held by V ivian W. Johnson, ch air­
m an of th e F irs t N ational Bank, Cedar
Falls, w ho announced some tim e ago
he w ould not be a candidate for th e
Mr. W alcott w as p resented the
ivory gavel in recognition of his serv ­
ice as p resid en t by C harles R. Gossett,
ch airm an of th e board of Mr. W al­
c o tt’s bank, S ecurity N ational. Mr.
G ossett w as IBA presid en t him self in

th e p a rt b anking plays in th e econom ic grow th factor th a t is posed by
both political parties. He said studies
show th e c u rre n t ban k in g system to
be sound and th a t a basic overhaul is
not necessary. B anking has grow n
less rapidly th a n th e econom y as a
w hole and com pared to o ther financial
in stitu tio n s, he said. H ow ever, he did
not feel these facts w ere d istu rb in g
because th e re is no reason w hy banks
should grow as fast as the economy—
because th e public is unconcerned as
to w ho provides th e services. This,
he said, should be the concern of
He advised banks n ot to follow u n ­
w ise policies in th e ir aggressive ef­
forts to be com petitive, b u t ra th e r follow in telligent planning in being com­

C harles J. Scanlon, presid en t of the
F ed eral R eserve Bank, Chicago, cited
th e fact th a t 55 p er cent of Iow a’s
farm ers in 1959 “sold products valued
a t $10,000 or less,” adding th a t “the
population and labor of th e 97,000
farm s producing less (th an $10,000)
adds up to a big potential addition to
th e s ta te ’s u rb a n population and w ork
force. (T his) has offered m an u factu r­
ing and o th er firm s an incentive to
settle in Iow a.”

D avid R o c k e f e l l e r , presid en t and
chairm an of th e executive com m ittee
of T he Chase M anhattan Bank, New
York, called for a cut in personal and
corporation taxes of $8 to $10 billion
an n u ally in o rder to give th e rig h t
kind of stim ulation to the economy.
He reasoned th a t a big enough tax
cut w ould stim u late th e expansion
grow th needed to create new jobs,
new production and new m ark etin g
th a t eventually w ould upgrade th e
econom y and actually re su lt in g reat­
er federal tax incom e to balance the
budget. He said if th is nation does
n o t im prove its economic grow th,
o th er economic problem s probably
w ill w orsen progressively and th u s
become m ore difficult to solve.

Mr. Scanlon said th e keen public in ­
te re st in b an king at th is tim e is not
n ecessarily generated by c u rre n t p ro ­
posals to change th e b anking system
or th e in d u stry ’s ow n focusing of a t­
ten tio n on its problem s, b u t ra th e r
public in te re st has been sharpened by

M iss H ilda H. K ollm an, president of
th e N ational A ssociation of B ank
W om en, and vice presid en t and cash­
ier of th e S tate B ank of Blue Island,
111., spoke on “W om en in B anking,”
telling th e g reat strid es m ade by w om ­
en in perform ing successfully the ex-












L E F T — Chas. Atwell, p res., M t. P le a s a n t B k. & T r., a n d James
Saxon, c o m p tro lle r o f tlie c u rre n c y , W a sh in g to n . C E N T E R —
John Pain, a sst, v.p., M a rq u e tte N a tl., M in n e a p o lis; David Rock­
efeller, p res., C hase M a n h a tta n B a n k , N ew Y o rk ; Ed Burchette,

pres., V a lle y B k. & T r., D es M o in es; Neil Howland, v.p., Chase
M a n h a tta n , N ew Y o rk , a n d John Hejinian, a sst, v.p., C hase M a n ­
h a tta n . R IG H T — Howard Beerman, a sst, cash., L iv e S to c k N a tl.,
C hicago, a n d Fae Evans, pres., W o o d b u ry B k. & T r., S ioux C ity.

L E F T — Dierck Post, a sst, v.p., M a n u fa c tu re rs T r., N ew Y o rk ,
a n d Dale Auld, p res., L a P o rte C ity S t. B k. R IG H T — Harold
Klein, sr. v.p., Iow a-D es M oines N a tl. B k .; Bob Thom, official

rep., F i r s t N a tl. C ity B a n k , N ew Y o rk , a n d Dan de Menocal,
v.p., F i r s t N a tl. C ity B k., N ew ^ ork.

L E F T — J. M. Burch, p res., D u b u q u e B k. & T r.; W. B. Griffin,
v.p., Io w a S t. B k. & T r., F a irfie ld , a n d Ed Jorgensen, v.p., C ity
N a tl., C lin to n . R IG H T — Bill Sherman, a.c., C ity N a tl., K a n sa s

C ity ; Clair Schroeder, v.p., C ity N a tl., K a n sa s C ity a n d Dick
Nachazel, v.p. a n d cash., F a rm e rs & M ercli. S av. B k., B u rlin g to n .

L E F T — Dale DeKoster, p res., W a te rlo o S av. B k., a n d Mel
Abrahamson, tre a s., S ta te o f Io w a . C E N T E R — Chuck Gustaveson of N a tl. F id e lity L ife , a n d Stan Grotenhuis, v.p., & c ash ie r,

E p w o rth S a v . B k. R IG H T Don Tracy, rep., A m e ric a n E x p ress,
F e d . W are h o u sin g , O m aha, a n d Dave Coffman, v.p., A m e ric an
E x p ress, New- Y ork.
N orth w estern
Federal Reserve Bank of St. Louis

Banker, November,





L E F T — Harry Schaller, p res., C itiz en s F i r s t N a tl., S to rm L a k e ;
Jerry Nelson, v.p., Iow a-D es M oines N a tl., a n d M. Monroe
Kimbrel, p res., A m e ric a n B a n k e rs A ssn. R IG H T — G roup fro m
B a n k e rs T ru st, D es M oines, in clu d e Cy Kirk, v .p .; Homer Jen-

ecutive duties assigned th em in banks
both large and small.
Gordon L. M ennen, p resid en t of th e
Le M ars Savings Bank, rep o rted on
plans for celebrating th e C entennial
in 1963 of th e natio n al ban k in g sys­
tem and dual system of banking, th e n
show ed th e film on th is program m ade
by the A.B.A.
M. M onroe Kim brel, A.B.A. p resi­
dent and ch airm an of th e F irs t N a­
tional B ank at Thom son, Ga., m ade a
real im pression on th e packed b all­
room d u rin g his first appearance be­
fore a state b a n k e rs’ convention fol­
low ing his election a t A tlantic City.
He proved him self an able speaker,
w ith th e kind of platform polish th a t
held atten tio n as he w en t th ro u g h th e
A.B.A. program for th e y ear and set
fo rth its stan d on vario u s m atters,
w ith p ractically no reference to notes
before him.
He said m uch credit for th e gains
m ade by han k in g d u rin g th e recen tly
concluded session of C ongress m u st
be given to ra n k and file m em bers
from all states, w ho su pported every
program w hen called on to do so by

A.B.A. h eadquarters. He said his of­
fice w ill continue to review any leg­
islation com ing up ,and w hen P resi­
dent K ennedy’s tax bill is presented
n ex t year, A.B.A. w ill look at it ob­
jectively to see th a t it is honest tax
reform on a broad, stro n g base th a t
w ill be in th e best in terests of the
He rep orted th a t at th e NABAC
convention in Florida, an ad m in istra­
tion sp eaker had proposed increasing
FD IC coverage for banks from $10,000
to $25,000 w ith no increase in presen t
prem ium s.
He also asked ban k ers not to ap ­
proach suggested changes w ith in the
in d u stry w ith closed eyes, b u t ra th e r
w ith a view to seeing w h at proposals,
if any, are for the b e tterm en t of serv­
ice to custom ers, and to banks.
Com ptroller of the Currency Jam es
J. Saxon, W ashington, D. C., outlined

th e steps his office plans to take im ­
m ediately for changes in line w ith the
84-point rep o rt subm itted to the P re s­
ident by his office several w eeks ago.
T hese steps are review ed in a special
featu re article in th is issue.

L E F T — H. Rowenhorst, p res., N .W . S ta te B k., O ran g e C ity, a n d
Stan Evans, first v.p., L iv e S to c k N a tl., S ioux C ity . C E N T E R
—Ed Spetman, exec, v.p., C ouncil B luffs S av. B k .; Hubert the
Harris Lion, a n d Gil McEwen, a.c., H a rris T r. & S av. B k., Clii-

No rf Awestern

Banker, N o v e m b e r ,
Federal Reserve Bank of St. Louis


sen, a sst, v .p .; Mrs. Robt. Sterling; Robt. Sterling, p re s.; Scott
Pidgeon, vice chm n., a n d Mrs. Pidgeon; Mrs. Crawford Hubbell, a n d Crawford Hubbell, v.p.


G eneral Mark W. Clark ( U S A . ,r
R et.), p resid en t of The Citadel in
C harleston, S. C., spoke at a m ost ap­
p ro p riate tim e. F eeling w as ru n n in g
high du rin g th e convention over th e
Cuban crisis and G eneral C lark gave
Iow ans a first-hand rep o rt on w h at it
feels like to be dealing w ith people
w ho cannot be tru ste d and w ho do
not observe th e sam e ground rules of M
in teg rity and m orality th a t other n a­
tions observe. He said during his ten ­
u re as C om m ander of th e U. S. F ifth
A rm y in Italy, he w as requested by
Gen. George M arshall to p erm it a +
R ussian general and his staff to ac­
com pany G eneral C lark’s own staff
th ro u g h Italy. G eneral C lark con­
sented, b u t learned later th a t th e po- >
litical com m issar w ho accom panied the
R ussian group, w as follow ing up be­
hind A m erican troops w hen th ey
w ould take Italian villages and cities
after fierce fighting and w as going in
and organizing Com m unist cells.
L ater, G eneral Clark headed the m il­
ita ry governm ent in A ustria w here he
had face to face dealing w ith R ussians f
and found them com pletely u n tru s t­
w orthy. He learned here, he said, th a t

cago. R IG H T — Alvin Renaas, v.p. & cash., D e co ra h S t. B k .;
H. E. Lemkau, exec, v.p., M u sc a tin e B k. & T r., a n d Otto Preus,
v.p., M a rq u e tte N a tl. B k., M in n e ap o lis.


meet the men behind the signatures
The non-traveling members of our Correspondent
Banking Team often wish they could get to as many
places as their signatures do. But they’re kept busy at
Live Stock National serving our many banker friends
by phone and mail.
PAUL BETZ, Senior Vice President, supervises our
Trust and Mortgage Loan Departments. Paul is always
on the lookout for unusual coins to add to his collection.
HAROLD JOHNSTON, Executive Vice President, is an
authority on bonds. Harold spends his spare hours tape­
recording music. KEN CHRISTENSEN, Comptroller
and Auditor, can match fishing stories with the best of
them and is also a philatelist of some note.

4150 South Hoisted Street, Chicago, Illinois •

Phone YArds 7*1220

M e m b e r F e d e r a l D e p o sit In s u r a n c e C o rp o ra tio n
Federal Reserve Bank of St. Louis

N o r t h w e s t e r n Ban ker, N o v e m b e r ,





L E F T — Jack Porterfield o f Geo. L a M o n te & Son, C h icago; Len
Schrewe, v.p., F i r s t N a tl., S t. L o u is; Leo Gruber, p res., D ro v e rs
N a tl., C hicago, a n d Jack Campbell, Jr., v.p., H u m b o ld t T r. &
S av. R IG H T — Dale Smith, v.p., C e n tra l N a tl. B k. & T r., D es

only a vigorous display of force th a t
let th e com m unists know th e re w as
no backing dow n w as th e only th in g
th ese people understood. L ater, w hen
he com m anded UN forces in Korea,
this sam e forceful a ttitu d e h ad to be
displayed all th e itm e to p re v e n t R us­
sians from ru n n in g aw ay w ith every­
th in g d u rin g political m an eu v erin g
d u rin g th e “tru ce.”
G eneral C lark backed th e play of
P resid en t K ennedy, advocating force
of arm s if n ecessary to p reserv e th e
w estern hem isp h ere from fu rth e r in ­
filtration of com m unists.
R obert L. M yers, Jr., secretary of
th e P en n sy lv an ia d e p a rtm e n t of b an k ­
ing, H a r r i s b u r g , defended s ta te ’s
rig h ts in his talk, “Dual B anking—
F a c t or F an cy .” He is re tirin g p resi­
den t of th e N ational A ssociation of
Supervisors of S tate B anks and dis­
agrees sh a rp ly w ith som e of th e
sw eeping changes advocated by Comp­
tro ller Saxon, p a rtic u la rly w h ere the
la tte r w ould have n atio n al b an k rig h ts
enforced over any sta te law s in th e
m atter.

W alter P. M arshall, p resid en t of
W estern U nion T elegraph Company,
New York, gave ban k ers inform ation
on th e “Conquest in C om m unications,”
w hich consisted in g reat m easure of
th e p a rt W estern U nion is tak in g in
natio n al defense w ork. M any in th e
audience did not realize it, b u t Mr.
M arshall w as try in g for th e first tim e
one of W estern U nion’s inventions.
The tw o panes of clear glass th a t
w ere placed in fro n t of him on each
side of th e podium w ere connected by
w ires w ith backstage equipm ent. His
en tire speech w as projected electroni­
cally on these plates of clear glass
b u t th e w ords w ere visible only to
th e sp eaker from his side of th e p lat­
form . T he backstage m onitor set w as
controlled by an op erato r w ho trig ­
gered a revolving d rum th a t had Mr.
M arshall’s speech p rin ted in ex tra
large type. T his p erm its th e speaker
to look at his audience w hile actually
seeing his speech projected on the
One of th e g reatest w indup speakers
to tre a d th e Iow a convention platform
was Dr. R obert J. Samp, a cancer spe­

L E F T — Robt. Ziemer, v.p., N .W . N a tl. B k., M in n e ap o lis, a n d
Herb Ollendorf, p res., H a n c o c k Co. N a tl. B k., G a rn e r. C E N T E R
—Mrs. Scott Pidgeon; Scott Pidgeon, v ice clim n., B a n k e rs T r.,
D es M o in es; Tom Cannon, v.p., C om m erce T r., K a n sa s C ity ;
N o r t h w e s t e r n Banker, N o v e m b e r ,
Federal Reserve Bank of St. Louis


M oin es; Tom Huston, v.p., C olum bus J u n c tio n S t. B k., a n d Mel
Shanda, cash., H om e S t. B k., Je ffe rso n . M r. H u s to n is p res.,
Io w a School o f B a n k in g G roup, a n d M r. S h a n d a is vice p res, of
th e group.

cialist from U n iversity H ospitals of
W isconsin Madison. He exhibited a
ra re sense of hum or in a talk th a t cap­
tu re d every m an and w om an in the
audience. The thesis of his talk w as
th e “crim e” th a t m ost A m ericans are
com m itting against them selves by be­
ing overw eight. He stated flatly th a t
th e audience averaged 15 pounds over­
w eight p er m an. A look around the
room w as enough to verify this. He
stated fu rth e r th a t every 15 pounds
of overw eight has been figured by ex­
p erts to trim th ree y ears off a perso n ’s
“T his,” he illu strated vividly, “is
like being forced to carry a bow ling
ball w ith you w herev er you go. And
some of us here have two or th ree
bow ling balls!”
He told the m en to figure th eir
th e ir height in inches, th en su b tract
th e ir g irth in inches. If the resu ltin g
n u m ber is 39, 40 or 41, the m an is in
good shape. If it’s h igher th an 41 h e ’s
really lean. If th e figure is 36 or be­
low, “y o u ’re ju st plain overw eight,”
he chided.
He asked b an k ers to consider th e

Mrs. Chas. Walsh, a n d Chas. Walsh, pres., F a rm e rs & M erch.
S av. B k., B u rlin g to n . R IG H T — Joe Lisek, v.p. a n d Lew Holland,
v.p., b o th of L iv e S to c k N a tl., C hicago.


C h a ir m a n — F l e x s t e e l I n d ., I n c .
C h a i r m a n — I n t e r s t a t e F i n a n c e C o rp .
P r e s id e n t
M A U R IC E A . F R A H E R
D ir e c t o r — D e e r e & C o.
F i r s t V ic e - P r e s id e n t
W . N . GLAB
P r e s id e n t — M o r r is o n B r o s . C o.
R O B E R T G. H Ö L S C H E R
P r e s id e n t — H ö ls c h e r A p o t h e c a r ie s
M. L . K A P P
P r e s id e n t — I n t e r s t a t e P o w e r C o.
S ec r e ta r y -T r e a su r e r —
K la u e r M f g . C o.
V i c e - P r e s id e n t & T r u s t O fficer
N IC H O L A S J . S C H R U P
V ic e - P r e s id e n t
V ic e - P r e s id e n t &
S e n io r T r u s t O fficer
P r e s id e n t — D u b u q u e P a c k i n g C o.

S p e c ia l C o n s u lt a n t
C. J . K L E IN S C H M ID T
S e n io r V ic e - P r e s id e n t

P r e s id e n t
F i r s t V ic e - P r e s id e n t
C a s h ie r
C. F . A R M S T R O N G
V i c e - P r e s id e n t
W . G. B A U M H O V E R
V ic e - P r e s id e n t
V i c e - P r e s id e n t
C. J . K L E IN S C H M ID T
V ic e - P r e s id e n t
J . L . R IL E Y
V ic e - P r e s i d e n t
N IC H O L A S J . S C H R U P
V ic e - P r e s id e n t

V ic e - P r e s i d e n t
S e n io r T r u s t O fficer
V ic e -P r e s id e n t
T r u s t O ffic e r
A s s i s t a n t C a s h ie r
T r u s t O ffic e r

American Trust & Savings Bank
September 28, 1962

Cash ................................................................ $ 7,043,899.40
U. S. Government Securities ..................... 12,226,609.47
U. S. Public Housing- Authority B onds....... 2,532,709.68
Municipal Bonds......... ............
Federal Reserve Bank Stock....... ................
Loans ............................................................... 15,396,911.54
Overdrafts ...............................................
Bank Premises—
(Including Furniture & Fixtures) .....

Capital .......... ......... ...... $ 500,000.00
Surplus .........................
Undivided Profits ......
Reserves .......
Other Liabilities
Deposits _____


american trust
a n d s a v in g s b a n k

N orth w estern
Federal Reserve Bank of St. Louis

Ban ke r. N o v e m b e r, 196Z





L E F T — Chas. W. Eastburn, easli., Io w a S t. B k. & T r., F a irfie ld ;
Dick Rastetter, v.p., C ont. 111. N a tl. B k. & T r., C hicago, a n d
Mrs. Rastetter. B IG H T — L. W. Ross, pres., C ouncil B luffs S av.

B k .; Frank Warden, d ir., C e n tra l N a tl. B k. & T r., D es M oines;
J. A. Barlow, S t. B k. o f D um ont, a n d Ed Spetman, Jr., exec, v.p.,

L E F T — C um m ins-C hicago Corp. d isp la y is show n w ith Keith
Jung, sales re p r. (c e n te r) a n d Jim Fletcher, a sst, v.p., N a tl. B k.
o f D es M oines ( r i g h t) . R IG H T — John Klein, sales re p re se n ta -

tiv e , D ieb o ld , In c ., D es M o in es; Lee Holland, exec, v.p., W ashin g to n S t. B k. (c e n te r) a n d Dick Gwinn, D iebold, In c ., D es
M oines ( r ig h t) .

C ouncil B luffs S av. B k.



L E F T — Chas. Atwell, p re s., M t. P le a s a n t B k. & T r., a n d L. T.
Harlan, v.p., H illsb o ro B k. & T r. R IG H T — Dick Randall, cash.,

D u n la p S av. B k .; Herb Echtermeyer, v.p., O m aha N a tl. B k., a n d
Joe Knock, pres., Io w a S t. S av. B k., C reston.

LEFT—Ken Martin, v.p., 1st N a tio n a l, M in n e ap o lis, a n d Joe
Menges, p res., A lta V is ta S ta te . R IG H T — Gerald E. Fitzgerald,
a.c., 1st N a tio n a l, C hicago; L. G. (Jack) Hix, v.p., 1st N a tio n a l,

W a v e rly ; Collin W. Fritz, v.p., J a s p e r C o u n ty S a v in g s, N e w to n ;
Vic von Meding, v.p., 1st N a tio n a l, C hicago, a n d Hoyt C. Mes­
serer, p res., 1st N a tio n a l, C ed ar F a lls.


N o r t h w e s t e r n Banke r, N o v e m b e r ,
Federal Reserve Bank of St. Louis



J à iL IL H Y T
Walnut at Fourth

Des Moines, Iowa

N o r t h w e s t e r n Ban ke r, N o v e m b e r ,
Federal Reserve Bank of St. Louis





L E F T — (S ta n d in g ) John D. Woods, a.c., N o rth e rn T ru st, C h i­
cag o ; Gilbert Garton, exec, v.p., 1 st S ta te , C h a rito n , a n d Robert
P. Kline, v.p., N o rth e rn T ru s t. (S e a te d ) Mrs. Woods, Mrs.
Garton a n d Mrs. Kline. R IG H T — Fred D. Cummings, v.p., D ro v ­

ers N a tio n a l, C h icag o ; Larry Olson, v.p., & cash., H om e S ta te ,
R o y a l; W. R. Hatter, v.p., Io w a C o u n ty S a v in g s, M a re n g o ;
Thos. J. Thornton, v.p., G rin n e ll S ta te , a n d Bernard D. Miller,
a.v.p., D ro v e rs N a tio n a l, C hicago.

L E F T — Richard O. Weyrauch, a.v.p., 1st N a tio n a l, M in n e a p o lis;
John Topp, v.p., 1st W isco n sin N a tio n a l, M ilw a u k ee , a n d C. F.
Peremsky, cash.. M e rc h a n ts N a tio n a l, C e d a r R a p id s. R IG H T —

H. W. Godbersen ( l e f t ) , p res., a n d Russell Hultgren ( r ig h t) , dir.,
b o th w ith I d a C o u n ty S ta te a t I d a G rove, w ith Harold R. Brown-

L E F T — Allen Stuits, exec, v.p., A m e ric a n N a tio n a l B&T, C hi­
cago, H. F. Schmidt, v.p., T re y n o r S ta te ; Wm. B. Whitman,
a.v.p., A m e ric a n N a tio n a l B&T, C h ica g o ; Joe T. Grant, pres.,
1 st N a tio n a l, Sioux C ity , a n d J. M. Burch, Jr., p re s., D ubuque
B&T. C E N T E R — D. E. Wilkins, F D IC su p e rv isin g e x a m in e r fo r

8 th d is tric t, C hicago, a n d Art Lindquist, v.p., M e rc h a n ts N a ­
tio n a l, C e d ar R a p id s. R IG H T — Loren Anderson, p res., C herokee
S ta te ; Ed Hoffman, v.p., 1 st N a tio n a l, Sioux C ity ; O. E. Fristad,
p res., 1 st N a tio n a l, L eM a rs, a n d C. M. Johnson, v.p., 1st T&S,
A u re lia .

L E F T — Jack H. Thomson, a.c., C resco U n io n S a v in g s; Mrs.
Thomson; Mrs. John Mangold, a n d John Mangold, v.p., M e r­
c h a n ts National, C e d ar R a p id s. R IG H T — Don R. Ostrand, v.p.,

a n d Jim Cook, ag. rep., b o th w ith 1 st N a tio n a l, O m a h a; Albert
Karns, Jr., cash., A n ita S ta te , a n d Wm G. Y oung, v.p., S ta te
S a v in g s, B e d fo rd .

N o r t h w e s t e r n Banke r, N o v e m b e r,
Federal Reserve Bank of St. Louis


ing, v.p., U . S. N a tio n a l, O m aha.


Statem ent of C ondition
SEPTEMBER 30, 1962


C ash_________________________________$
United States Government Securities_______
Municipal Bonds_______________________
Federal Reserve Bank Stock______________
Bank Premises_________________________
Furniture and Equipment_______________



P resid en t



D ew ey P o rtla n d C em en t Co.

J . M. H U T C H IN S O N

E x e c u tiv e V ice P resid en t

D a ven p o rt
H . E . G IT T IG

D a ven p o rt


and Profits _______________


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



Senior Vice President
C A B G E G. V O N



P e te rse n -H a rn ed -V o n M aur, In c.

W alsh C o n stru c tio n C om pany
C. D.


L an e a n d W a te rm a n

Davenport Bank
w r a tu /
D A V E N P O R T , IO W A
Member Federal Deposit Insurance Corporation






N o r t h w e s t e r n B an ke r,
Federal Reserve Bank of St. Louis









WAITING FOR BANKERS, in a c o n v e n tio n session a t th e tim e,
to r e tu r n a n d a sk q u e stio n s a b o u t e q u ip m e n t a n d se rv ice s of
R e co rd a k C o rp o ra tio n , a re r e p re s e n ta tiv e s of R e co rd a k , fro m
le f t : Monty K. Blatt, C hicago; Don L. Frankland, O m aha;
Don B. Keller, O m aha, a n d Jack A. Ludwig, b r. m gr., O m aha.
SE C O N D P H O T O — W ith th e a u to m a te d P o s t-T ro n ic a re, fro m

l e f t : Frank Rogan, D es M oines, te r r i t o r y m gr., a c c o u n tin g m a ­
chine sales, N a tio n a l C ash R e g is te r C om pany; R. D. Stewart,
cash., a n d W. O. Hopkins, p res., b o th of C itiz en s S ta te B a n k ,
W e b b ; Carl B. Kindwall, v.p., A lb e rt C ity S a v in g s B a n k , a n d
Philip Storrs, D es M oines, a c c o u n tin g m ach in e sales, N a tio n a l
Cash R e g is te r C om pany.

m a tte r of getting and m ain tain in g
th e ir p ro p er w eight as a challenge and
to see if th e y have enough w ill pow er
w ith in them selves to achieve th is de­
sired level of w eight. He suggested
m oderation in food, good exercise—
brisk w alking above all—use of plenty
of w a te r th ro u g h o u t th e day, and
p roper rest.
Dr. Samp closed th e convention on
a note th a t left everyone in good h u ­
m or and w ith good intentions.

jam m ed house at th e Val-Air Ballroom
for th e buffet supper dance, and the
final general e n tertain m en t w as Bob
N ew h art and a group of professional
e n te rta in e rs th a t did a fine job. The
ladies also w ere e n tertain ed w ith an
afternoon style show p resented by
Miss P auline Trigere, and th is w as a
hig h lig h t of th e w eek for them .
The dates for th e 1963 convention
w ill be announced later.— End.

John B. K eeline, p resid en t of Cen­

(C ontinued from page 72)
schools, th en given the task of build­
ing th e system s, draftin g th e neces­
sary form s and coordinating w ith the
d ep artm en ts to be converted. As a
re su lt th e b ank is in th e unique posi­
tion of building a com pletely new elec­
tronic d ep artm en t th a t is entirely
staffed from its own em ployees. The
six m en involved in this w ork re p re ­
sen t over 75 y ears of banking expe­
No em ployees will lose th e ir jobs

tra l T ru st & Savings B ank, Cherokee,
w as introduced to th e audience and a
resolution backing him in his candi­
dacy for election as tre a s u re r of the
A.B.A. in 1963 for a tw o-year te rm w as
adopted unanim ously.
Social functions of th e convention
w ere again m ost en tertain in g . The
Storm Lake, Iowa, L ittle T h eatre
G roup staged th e play “South Pacific,”
in real professional fashion. Guy Lom ­
bardo and his o rch estra played to a


EXAMINING THE QUALITY of MICR, im p rin te d b y B u r­
ro u g h s T odd T128 I m p rin te r, a re , fro m l e f t : Carl R. Mueller,
cash., H o u g h to n S ta te B a n k , R ed O a k ; John Onka, Steve Vitale,
a n d Hal Whitfield, b r. m gr., a ll th re e w ith th e T odd D ivision
o f B u rro u g h s Corp. SE C O N D P H O T O — R e s tfu l m usic a t th e
M a s te rta p e s M usic, In c ., bo o th so o th ed tir e d stu d e n ts of A m e ri­
N o r t h w e s t e r n Banke r,

November, 7962
Federal Reserve Bank of St. Louis

because of the new equipm ent, Mr.
Joh n so n em phasized. D uties of some
em ployees w ill change, giving oppor­
tu n ities for m ore in terestin g and ad­
vanced w ork to girls form erly doing
ro u tin e sortin g of 30,000 to 40,000
checks p er day.
A t the p resen t tim e, w o rk is pro­
gressing on conversion of tru s t ac­
counting, dem and deposit accounting,
savings, in stallm en t loans, and bank
payroll to th e 1401 system . All of
this should be accom plished by the
s ta rt of 1963.
E ventually, all functions w ithin the
ban k th a t can be handled on th is
equipm ent w ill be changed over. In
addition, th is equipm ent offers n u m er­
ous possibilities for The Omaha N a­
tional to serve even b e tte r its corre­
spondent ban k and com m ercial ac­
count custom ers, Mr. Johnson stated.
The equipm ent is in a special room
in the low er lobby level of the bank
and is available for inspection by in ­
terested ban k ers at any time.

can I n s t i tu t e o f B u sin ess, D es M oines, w ho h elp ed m an th e
la rg e r e g is tr a tio n ta b le fo r th e c o n v en tio n . P ro m le f t a re :
Kathy Christensen, O gden; Cheryl Stanek, F t. D odge; July
Huffman, F a irfie ld ; Harvey Inman, div. m gr., o f M a ste rta p e s ,
a n d Sandra Pearson, O ttu m w a.


R an dall R e m o d e lin g
J. H. B rekken, president, R andall
S tate Bank, R andall, Iowa, has an ­
nounced plan s for a com plete rem od­
eling of th e b an k and th e adjoining
post office.
C ontract for th e w o rk w as aw arded
to K irk G ross B ank P lan n in g Com pa­
ny, W aterloo.

A n iversary B a rb eq u e


The A n keny N ational B ank, Ankeny, m ark ed its first a n n iv e rsa ry
w ith a free beef barbeque last m onth,
re p o rts C arl C. H enderson, president.

w ill be open from 9 a.m. to 2 p.m.
M onday th ro u g h T hursday. On F ri­
days th e hours w ill be from 9 a.m. to
5 p.m. and from 7 to 9 p.m., and on
S atu rd ay from 9 a.m. to noon.

H artw ick O p en H o u se
More th a n 500 persons to ured the
H artw ick S tate Bank, H artw ick, re ­
cen tly d u ring an open house in ob­
servance of th e b a n k ’s 35th a n n iv er­
sary. E ach person w ho w as a cus­
to m er d u ring th e first m onth of oper­
ation 35 y ears ago w as given a spe­
cial gift. R egular custom ers w ere
given personalized checks as a gift.
O ther door prizes also w ere aw arded.



H o ld s Farm In stitu te
The T hird A nnual F a rm In stitu te
sponsored by th e Jackson State Sav­
ings Bank, M aquoketa, w as conducted
recen tly at th e M aquoketa C ountry
Club. A rea livestock m en, farm ers
and all o ther in terested persons w ere

O n A .B .A . C om m ittee
Thom as 0. Cooper, president, Je f­
ferson State Bank, Jefferson, has been
nam ed chairm an of th e C ountry B ank
O perations Com m ittee of th e A m eri­
can B ankers A ssociation. This ap­
p o in tm en t also m akes him a m em ber
of th e A.B.A. executive council.

W in. P. R on an H o n o red

W illiam P. Ronan, president, De­
corah State Bank, w as am ong those
receiving d istin g u ish ed service aw ards
recen tly from L u th e r College in De1 corah. R ecipients w ere selected by
th e L u th e r faculty h o n o rary aw ards
com m ittee from a list of nom inees
subm itted by alum ni, facu lty and
< friends of th e college.

E sth e r v ille C on stru ction
W ork is in p rogress on th e new
U $80,000 drive-in facility a t the Iow a
T ru st and Savings B ank, E stherville.
The new 33 by 44-foot addition will
be co n stru cted of brick w ith large
areas of glass on th e w est and south
w alls. The first floor of th e stru c tu re
w ill featu re an enclosed area to house
th e w alk-up w indow and in stallm en t
loan facilities. The b asem en t w ill
a/ house a new v a u lt and bookkeeping
dep artm en t. A single drive-up w in ­
dow w ill be included in th e building.

S e y m o u r O p en H o u se
More th a n 700 persons to u red th e
Seym our S tate B ank recen tly d u rin g
an open house m ark in g com pletion of
a rem odeling program .

Statement of Condition
September 28, 1962

Cash on Hand and on Deposit with B a n k s................. $ 9,701,864.24
United States Government Securities ....................... 12,469,436.83
Other Bonds and Securities ......................................... 1,368,665.82
Loans and Discounts ..................................................... 23,512,117.21
Security National Bank Building, Vault and Fixtures
Federal Reserve Bank Stock .......................................
Other Assets .....................................................................

Capital ..................................................... $1,700,000.00
Surplus ................................................... 1,800,000.00
Undivided Profits ................................... 537,867.86
Total Capital Accounts ................................................. 4,037,867.86
Deposits ............................................................................. 43,689,425.80

R. O. H e n sto r f


R. O. H enstorf, 76, presid en t, F irs t
N ational B ank, F a rra g u t, died last
m onth a t Shenandoah h ospital after
a long illness. He had been associated
w ith the b an k for m ore th a n 55 years.


C h a r le s R . G o s s e t t , C hairm an o f B oa rd

O r v i l l e B o e , C ashier

C h a r le s H . W a l c o t t , P r e sid e n t

W illia m

E d w a r d C . T h o m p s o n , J r ., V ic e P r e sid e n t

J a m e s A . D o w n in g , A s s is ta n t C ashier
W a y n e L T h o m p s o n , A s s is ta n t C ashier

T h o m a s C. H o r n , V ic e P re sid e n t
D a n i e l L . M i d d le t o n , V ic e P re sid e n t
P a t r ic k F . C o o k , V ic e P r e sid e n t

A n n o u n c e s N ew H ou rs
C harles C ity’s th re e b anks have a n ­
nounced new b an k in g hours. T hey



T . H u b b a r d . A u d ito r

R ic h a r d G. O ’C o n n o r , M anager

P a u l S n y d e r , V ic e P r e sid e n t


V . H . C a s s e m , A s s is ta n t V ic e P re sid e n t

H ow ard L

J o h n D i e f e n d o r f , A s s is ta n t V ic e P re sid e n t

L . C. J e n s e n , A s s is ta n t T r u s t O fficer

J o h n s o n , V ic e P re sid e n t and

T r u s t O fficer

Security National Bank

"Accepted Sale Registers by Bank
Clerks Everywhere"
For in f o r m a t io n w r i t e

of Sioux City

Oakland, Iowa

M em ber F e d e ra l D eposit In s u ra n c e C orporation
Federal Reserve Bank of St. Louis

N o r t h w e s t e r n Ban ker, N o v e m b e r ,


R elations Com m ittee of th e A m erican
B ankers A ssociation for 1962-63.
T his is a new ly-created com m ittee,
designed to parallel th e w ork of the
F ed eral Legislative Com m ittee and to >be p rim arily responsible for federal
agency relations, including m atters
form erly covered by th e F ed eral De­
posit Insu ran ce Com m ittee and th e ^
F ederal Fiscal Procedures Com m ittee.

IMs Moines News



ARRY G. W ILSON, senior vice

p resid en t of th e Iowa-Des Moines

St. Joseph

. . . make it your correspondent!
The only bank with up-to-the minute
information on livestock marketing and
N o r t h w e s t e r n Banker, N o v e m b e r ,
Federal Reserve Bank of St. Louis


N ational Bank, re tire d October 31 af­
te r 47 y ears of service.
Mr. W ilson, born in Beacon, Iowa,
s t a r t e d at the
b an k in 1916 as a
messenger. I n
1927 he w as m ade
an a ssistan t cash­
ier and in 1940,
vice p r e s id e n t
and cashier, be­
coming senior
vice presid en t in
H. O,



h a l1 -

died th e person­
nel d e p artm en t of th e b an k for sev­
eral y ears and m any of th e em ployees
of th e b an k w ere h ired by him.
He and his wife, R uth, live a t 4724
P leasan t S treet in Des Moines. He
plans to do a lot of h u n tin g now th a t
he is retired.
Officers of th e b an k held a p arty
a t th e Des M oines Club October 18 and
p resen ted Mr. W ilson w ith a snow ­
plow as well as m any hum orous gifts.
* * *
Jam es W. H ubbell, ch airm an of th e
board, B ankers T ru st Company, w as
honored w ith a plaque and a citation
last m onth at th e ann u al m eeting of
th e board of directors of th e Iowa
M ethodist H ospital. Mr. H ubbell has
been ch airm an of the building com­
m ittee 20 years.
V in cen t Starzinger, board secretary,
said th a t an in stitu tio n achieves its
g re a te st value th ro u g h th e tim e, en­
ergy and m oney of those associated
w ith it.
“F ew com m unity leaders have given
as m uch of all th ree to Iow a M ethod­
ist H ospital as Jam es H ubbell,” he
Mr. H ubbell w as nam ed to th e board
in 1938 and appointed ch airm an of the
b uilding com m ittee in 1942.
Gerald O. N elson, vice president,
Iowa-Des Moines N ational Bank, has
been appointed to th e F ed eral Agency



Installatio n of a fo u rth drive-in tell­
e r’s w indow has been announced by
the N ational B ank of Des Moines. R. #
M. D onhow e, vice president, said th e
new w indow is at th e southw est cor­
n e r of the building and th a t th is is
th e second expansion of th e b an k <
since it w as established in 1955.



Mrs. Marie H. D onhow e, wife of Ar­
thur T. D onhow e, p resid en t of the

C entral N ational B ank & T ru st Com- r
pany, died last m onth in a Des Moines
Mrs. D onhowe w as born in Story
City and lived in Des M oines 35 years, r
She w as a m em ber of St. Jo h n ’s L u ­
th e ra n Church, th e Des Moines W om ­
en ’s Club, FZ C hapter of th e P.E.O.
Sisterhood and Ladies of the Des
Moines B ankers Club.
S urviving are h er husband; a son
in Des Moines; a d au g h ter in C harles­
ton, W. Va.; tw o b rothers, one in D av­
en p o rt and one in S anta Ana, Calif., 4
and six grandchildren.
A m em orial fund has been estab­
lished at St. J o h n ’s L u th e ra n Church.



P aul A shby, vice p resid en t in charge

of real estate, C entral N ational B ank
& T ru st Company, spoke on “E arly
Days in Des M oines” a t th e th ird in
a series of inform ative m eetings a t
the State H istorical Building, spon­
sored by th e Polk County H istorical
Society and th e D ep artm en t of Adult
E ducation of th e Des Moines Public





J. L ester B oyle, 59, salesm an for

M e r r i l l L ynch, Pierce, F e n n e r &
Sm ith, died last m onth follow ing a
h e a rt attack. H e w as E x alted R uler
of th e E lks Lodge No. 98, w hich con­
ducted a m em orial service at a Des
Moines fu n eral home.




A n open house and reception for
exhibiting a rtists w as held at the
Iow a State B ank on a Sunday after- v
noon last m onth, in conjunction w ith
an am ateu r a rt show w hich w as spon­
sored in th e b a n k ’s lobby du rin g the
w eek by the E a st Des M oines K iw anis
Club. T he open house and reception Jh
w as highly successful and several
h u n d red persons visited th e displays
d u rin g th e week.

Iowa News
Donald E. H am m er, a ssista n t cash­
ier, B ankers T ru s t Com pany, w as p re ­
sented his A.I.B. G raduate C ertificate
by th e p resid en t of th e bank, R obert
J. S terling, a t th e recen t A.I.B. Fall



T w enty-four m em bers of th e W om ­
en ’s Division, Cedar R apids C hapter
of A.I.B., c h a rte red a bus and cam e
to Des Moines one day last m o n th to
a tten d th e Des Moines C h ap ter’s A n­
nual Fall Style Show.
T hey w ere guests of th e C entral
N ational B ank & T ru st Com pany d u r­
ing th e day w here th e y to u red the
bank, w ith special in te re st in the
b a n k ’s au to m atio n program , w hich
w as show n, d em o n strated and ex­
B. C. Grangaard, president, w el­
comed them ; M ary H alstad, assistan t
cashier, gave a sh o rt ta lk on w om en
in ban k in g and th e o p p o rtu n ities of
advancem en t th ro u g h A.I.B. study
courses, and C larence D ickson, assist­
a n t cashier, and ch airm an of th e board
of governors, Des Moines C hapter,
discussed A.I.B. activities in th e Des
Moines area and offered several w o rth ­
w hile tip s for ch ap ter grow th and
T hroug h th e ir chairm an, W ilm a
W ilkinson, F a rm e rs S tate Bank of
M arion (su b u rb an b an k ), th e y ex­
tended an in v itatio n to th e w om en of
th e Des M oines A.I.B. to r e tu rn the
v isit in th e spring, re p o rts Jane B yers,
C entral N ational, ch airm an of the
W om en’s Division, Des M oines C hap­

revealed a t th e Iowa B ankers Con­
vention in Des Moines last m onth.
The b an k w ill continue to pay
th re e p er cent on passbook savings
and issue CDs on th e basis of th ree
per cent u n d er periods of 6 m onths
and a year.

C on d u cts Art Show
T he Com m ercial T ru st & Savings
Bank, Storm Lake, is conducting its
th ird an n u al a rt show in the bank
lobby. All am ateu r a rtists w ithin a
rad iu s of 35 m iles of Storm Lake w ere
eligible for entry. W orks are on dis­
play from N ovem ber 1 to N ovem ber
10. A n open house is planned for the
evening of N ovem ber 9.


J. A. R o h w er H o n o red
J. A. Rohw er, president, F a rm e rs
S tate Bank, Schleswig, w as honored
by th e Schlesw ig B usiness M en’s Club
recently for 50 y ears in b an king in
Schlesw ig and for com m unity service.
He is the fo u rth m an to receive a 50year aw ard.

M aquoketa B u ild in g
C onstruction is well und erw ay on
th e new q u a rte rs for th e M aquoketa
State Bank, to be located on N orth
Main across from th e post office. Com­
pletion is expected som etim e n ex t
spring, according to M. J. Pooler, cash­

% *

E arl F reel, m em bership chairm an,

Des Moines C hapter of A.I.B., has a n ­
nounced th a t 618 m em bers and 12 as­
sociate m em bers have joined the chap­
ter. Two b anks—T he N ational B ank
of Des M oines and V alley B ank &
T ru st — have atta in e d 100 per cent
m em bership.— End.

M ou lton O p en H ou se
More th a n 600 p ersons atten d ed
open house last m o n th a t th e new ly
rem odeled M oulton office of th e Davis
County Savings Bank, Bloomfield. The
$12,000 rem odeling pro g ram w as car­
ried out over a three-m onth period.

R e d u ce s Rate O n CDs
The M erchants N ational B ank, Ce­
d ar Rapids, has discontinued the
p aym ent of four per cent in te re st on
Certificates of Deposit. T his fact w as


Serving Iow a B a n k s
For O v e r 7 9 Y e a rs
X h E officers o f th e D r overs N a tio n a l B ank in C hi­
cago sp en d m uch of th eir tim e servin g th e n eed s of
Iow a hanks and hankers.
B anks th ro u g h o u t th e H a w k ey e State, as sh ow n on the
above m ap, have learn ed to d ep en d u p on D rovers 79
years ex p erien ce in assisting th em w ith th eir m any
b a n k in g prob lem s.
N ex t tim e you need a h elp in g h an d , ca ll or w rite
B ern ie M iller at D rovers. You w ill receiv e im m ed ia te
and p erson al attention .

Drovers National Bank

Federal Reserve Bank of St. Louis

Northw estern

Banke r, N o v e m b e r ,






Rates 20 cents per word per
insertion. Minimum: 10 words.
306 15th St., Des Moines, Iowa

P o s itio n a v a ila b le f o r T r u s t O fficer
in m e d iu m -siz e d b a n k in Io w a s e r v ­
in g a c ity a n d a r e a o f a p p r o x im a t e ­
ly 40,000. A g e 30 to 45, le g a l a n d
a c c o u n tin g t r a i n i n g o r e x p e rie n c e
h e lp fu l, b u t n o t r e q u ir e d . G ood o p ­
p o r t u n it y f o r g ro w th . W r ite M ZB,
c /o N O R T H W E S T E R N B A N K E R ,
306 1 5 th S t., D e s M o in e s 9, Io w a .

C hanges at M aynard
P aul A. B uenneke has resigned as
cashier of th e M aynard Savings Bank,
M aynard, to become cashier of the
D enver Savings Bank, D enver, Iowa.
He succeeds S. C. K im m w ho has re­
Don W. Buenneke, a ssistan t cash­
ier, w as nam ed cashier of th e May­
n a rd bank. H e w ill rem ain as m an­
ager of th e H azleton office as w ell as
cashier of th e bank.
J e r r y B urrack, form erly w ith the
S.C. office in F ayette, joined
M aynard b ank N ovem ber 1 as assist­
a n t cashier.

Sylw ester, e x t e n s i o n b o tan ist and r
p lan t pathologist from Iow a S tate U ni­
versity, and Dr. H. L. Self, in charge
of outlying experim ental farm s for
I.S.U. The afternoon w as devoted to ^
a stocker and feeder cattle dem onstra­
tion by rep resen tativ es of A rm our

M istaken Id en tity


Identification lines and photographs
w ere transposed on the accom pany­
ing pictures in th e October issue of

N ew C olu m b u s J u n c tio n B ank
O p e n in g in F o u r m illio n d o lla r
b a n k in s m a ll to w n in N o r th e r n
Illin o is . F o r a m a n w ith a n A g r i ­
c u ltu r e b a c k g ro u n d o r w h o h a s
h a d e x p e rie n c e a s a f a r m r e p r e ­
s e n ta tiv e to s e rv e a s A s s i s t a n t
C a s h ie r. W ill be N u m b e r tw o m a n
in tw o y e a r s d u e to r e ti r e m e n ts .
P r o f it S h a r in g a n d P e n s io n p la n .
S a la ry O pen.
W r ite C Z H , c /o
N O R T H W E S T E R N B A N K E R , 306
1 5 th S t r e e t , D es M o in e s 9, Io w a .

E x e c u tiv e officer o f $3,500,000.00
c o u n tr y b a n k , a g e d 49, w a n t s to
m a k e a c h a n g e . P r e f e r s to w n o f
5,000 to 25,000 o r s u b u r b a n c ity
b a n k . W a n ts lo a n officer p o s itio n .
S a la r y o p e n to d isc u ssio n . W r ite
A F B , c/o N O R T H W E S T E R N
B A N K E R , 306 1 5 th S tr e e t, D es
M oines 9, Io w a .

B u r r o u g h s S e n s itr o n ic s a n d R e a d ­
e r f o r s a le b y B a n k a t 7 0 % off.
W r ite f o r c o m p le te d e ta ils to T K A ,
c /o N O R T H W E S T E R N B A N K E R ,
306 1 5 th S t., D e s M o in e s 9, Io w a .




rother s


A pproval has been g ran ted for the
opening of a new b ank at Colum bus
Junction. Capital stru c tu re of the
b an k w ill total $250,000 w ith $125,000
in com m on stock, $75,000 su rplus and
$50,000 undivided profits. It w ill be
called the People’s N ational B ank and
a new building is planned.
Officers w ill be Joseph T. L eonhard,
ch airm an of the board; H a rry C. Lowe,
president; Clyde R.Crawford, execu­
tive vice president, and R aym ond L.
H endrickson, cashier.
Mr. C raw ford has been serving as
au d ito r a t th e F irs t N ational B ank
in Iow a City, and Mr. H endrickson
has been assistan t cashier at the City
N ational B ank a t Cedar Rapids.
D irectors of th e new b ank are John
B. Bell, Clyde R. Craw ford, M aurice
F urlong, R aym ond L. H endrickson,
Joseph T. Leonhard, H a rry C. Lowe,
D.V.M.; K enneth P. McCoy, Milton P.
Pretz, R oland R abenold and R obert
Schm idt.

W o o d b in e Ag. D ay
The F irs t N ational B ank of W ood­
bine recently conducted its th ird an ­
nu al A g ricultural Day, featu rin g an
all-day session for farm ers w ith o ut­
stan d in g speakers on various farm op­
M orning speakers w ere Dr. E. P.
P e rs o n a b le , y o u n g S U I G r a d u a te
in B u s in e s s , d e s ir e s a p o s itio n in a
s m a ll to m e d iu m siz e d b a n k . N o
e x p e rie n c e , b u t c a p a b le a n d a n x io u s
to le a r n . C u r r e n tl y in in s u ra n c e .
W r ite R B N , c /o N O R T H W E S T ­
E R N B A N K E R , 306 1 5 th S t., D es
M o in e s 9, Io w a .

H. H. B E E R M A N N

J . C. W A T S O N

the N orthw estern B anker . H. H. Beerm ann, w ho joined the Live Stock >
N ational B ank of Chicago as a ssist­
ant cashier, w as identified as Jo h n C.
W atson, p resid en t of the F irs t Na­
tional B ank of O’Neill, Neb., and Mr.
W atson w as identified as Mr. Beerm ann.

S io u x C itian H o n o red
Mrs. Carl L. Fredricksen, w hose A
husband is a director and form er p res­
ident of th e Live Stock N ational Bank,
Sioux City, has received the A m eri­
can Cancer Society bronze medal,
highest aw ard the society bestow s at
th e state level. The presen tatio n was
m ade in recognition of her d istin­
guished service in th e fields of cancer
Mrs. F red rick sen also w as elected
secretary of th e Iow a division at the
ann u al m eeting held last m onth in
Des Moines. She is a p ast state p resi­

H ead s H a n co ck B an kers
M artin Barz, cashier, F irs t N ational
Bank, Klemme, has been elected p resi­
dent of th e H ancock County B ankers
O ther new ly-elected officers are Paul
Van H elton, a ssistan t cashier, C orw ith *
State Bank, vice president, and Lonny
Eggers, F irs t State Bank, B ritt, secre­
tary -treasu rer.

O n R o ck R ap id s B oard
C o in c o lle c tio n s , g o ld , s ilv e r, c o p ­
p e r, l a r g e c u rre n c y , In d ia n c e n ts ,
o b s o le te U . S., F o r e ig n .

Hobby Sales
Box 4054
St. Paul 16, Minnesota
N o r t h w e s t e r n Banker, N o v e m b e r ,
Federal Reserve Bank of St. Louis


Donald G. DeW aay, Rock R apids a t­
torney, has been elected to th e board
of directors of th e Lyon County State ^
Bank, Rock Rapids, to fill the vacancy
created by th e recen t death of Hugo
P. Ross.

Io w a

N ew s


Council Bluffs Savings B rirc-ln Opens

R IB B O N C U T T IN G cerem o n y a t th e C ouncil B luffs S a v in g s
B a n k d riv e -in f a c ility w as c o n d u cted by, fro m le ft, P a u l W h ite ,
C ouncil B luffs c ity m a n a g e r; M iss J e a n B rin k m a n , M iss Coun-

F F IC E R S , d irecto rs and em ploy­
ees of th e Council Bluffs Sav­
ings B ank w ere pleased by an over­
w helm ing response of about 15,000
persons last m o n th to a highly-successful opening of the b a n k ’s new
drive-in facility.
W hen th e b an k m ailed its m on th ly
statem en ts several w eeks ago, it en­
closed e n try blan k cards, w hich w ere
to be filled out w ith th e cu sto m er’s
nam e, address and phone num ber.
Supplem enting th ese b lanks w ere
sim ilar ones in th e local new spaper.
Object of th e prom otion w as to en­
courage people of th e Council Bluffs
area to drive th ro u g h th e new drivein to deposit th e ir entries. The prize
a ttra c tio n w as $1,856 in cash—the
am o u n t re p re se n tin g th e y e a r of the
b a n k ’s founding—1856.
F irs t prize w as $1,000; second w as
$500 and th ird w as $256, w ith ten
prizes of $10 each.
T here w as a ribbon-cutting cere­
m ony; L. W. Ross, president, accepted
from C ongressm an Ben F. Jen sen an
A m erican flag w hich has flown over
th e W hite House; th e re w as a trip
th ro u g h th e drive-in in a 1914 O ver­
land to u rin g car, and Miss Council
Bluffs w as a ch arm in g h elper durin g
th e m orn in g cerem onies and th e eve­
n ing draw in g for prizes . . . b u t th e
big new s of th e day w as th e all-day­
long parade of cars—th re e ab re a st—
th ro u g h th e drive-in to deposit
chances on th e prize m oney. F ro m
four to six b an k officers and em ­
ployees directed traffic th ro u g h o u t
th e day off of one street, th ro u g h
th e facility and onto an o th e r street.
More th a n 8,000 cars visited th e new
drive-in w h ere m ore th a n 15,000 en ­
trie s w ere deposited.
The w e a th e r could h ard ly have
been w orse, b u t th e people cam e by

Federal Reserve Bank of St. Louis

cil B luffs; L. W. Ross, p re sid e n t, C ouncil B luffs S a v in g s, a n d
L eo n M orse, C ouncil B luffs m ay o r. A p a n o ra m ic v iew of the
new fa c ility is show n a t rig h t.

th e th o u san ds to reg ister th e ir chance
for th e free money.

Joins Crest on Bank
A rth u r J. D uben has been prom oted
from vice presid en t and cashier to
vice p resid ent and m anager of the
ag ric u ltu ra l d ep artm en t of Iowa State
Savings Bank, Creston, according to
Joseph G. Knock, president. Mr.
K nock also announced the ap p o in t­
m en t last m onth of P eter J. Dykem a
to succeed Mr. Duben as vice p resi­
d en t and cashier. Mr. D ykem a has
m oved to C reston from Kalamazoo,
Mich., w h ere he w as associated w ith
a bank.
One of Mr. D uben’s first duties last
m onth as m anager of th e b a n k ’s ex­
panding ag ricu ltu ral d ep artm en t was
to be host to 140 farm er-cattle feeders
of th e C reston area w hen th e bank
took th e group to Iow a State U ni­
v e rsity at Am es for the an n u al cattle
feeders Hey-Day. F o u r buses pro­

vided tra n sp o rta tio n for th e group.
A fter the one-day m eeting in Ames,
th ey w ere guests of the Iow a State
Savings Bank for d in n er at the Des
Moines Golf and C ountry Club d u r­
ing a stop en route back to C reston
in th e evening.
Mr. K nock also revealed last m onth
th a t Iow a State Savings is the first
b ank in Iowa u n d er $100 m illion in
deposits to become fully autom ated.
Complete autom ation of all book­
keeping and routine operational func­
tions w as begun in late Septem ber,
utilizing electronic equipm ent in ­
stalled by N ational Cash R egister

B u ilding at Sibley
C ontracts have been let for the
construction of th e new Sibley State
B ank building at 8th S treet and
4th A venue. The new building w ill fea­
tu re drive-in banking facilities. Low
bid on the project w as $81,936.

A c o m p l e t e , t i m e t e s t e d , p e r f o r m a n c e g u a r a n t e e d o u tfit

For Auction Sale Clerks
Receipts for Each Buyer


• Combats Skip Buyers

No Additional Listing


• Speeds Up Settling

No Posting of Accounts


• Buyers Like It

Absolutely the only outfit on the market combining all these features—
sold on a money back guarantee.

t e l e p h o n e Nos. 536-2651 o r 536-2522

Fullerton, Nebraska
Write Us for Sample Sh eets and Information

Northwestern Banker, November, 7962


Iowa News

Marion flunk Hosts

B E E F C A T T L E T O U R w as c o n d u cted re c e n tly b y th e F a rm e rs
S ta te B a n k , M a rio n , Io w a , in c o o p e ra tio n w ith th e S ioux C ity
S to c k Y a rd s. A ll fa rm e rs 21 y e a rs of age a n d o v er in th e

Leon-H um eston Changes
New corporations have been a u th ­
orized by th e Iow a State B anking
D ep artm en t to succeed th e D ecatur
C ounty S tate Bank, Leon, and the
Citizens State B ank, H um eston.
The b an k s w ill be know n as The
D ecatur C ounty State B ank and The
Citizens S tate Bank. The new org an ­
izations have assum ed th e assets and
deposit liabilities of th e form er insti(A d v e r tis e m e n t!


M a rio n a re a w ere in v ite d to a tte n d . B uses le f t M a rio n on a
S u n d a y m o rn in g a n d re tu rn e d M o n d ay ev en in g . N e a rly 100
fa rm e rs p a rtic ip a te d .

tutions. H. E. Long, w ho is one of
th e key organizers of the Gulf-To-Bay
Bank, C learw ater, Fla., w as previous­
ly a m ajor stockholder in th e Leon
and H um eston banks, serving as p res­
Officers of th e new ly organized
b an k in Leon w ill be: B ert Millis,
president; K eith W. R ichard, execu­
tive vice president; Alice Akes, vice
president; Roy W. Meadows, vice
president; R alph Lyddon, assistan t
vice president; V. R. Carlson, cashier,

M odernization O ffers Beauty,
Serviceability & Efficiency
Mr. K irk Gross, w ho heads th e B ank
P lan n in g D ivision of th e K irk Gross
Com pany in W aterloo, inform s us
th a t m ore B anks are rem odeling th is
fall th a n ever before.
In fact, he said, m odernization p ro ­
gram s are actively und erw ay for
the F o re st City B ank and T ru st Com­
pany in F o re st City; th e State B ank
of V inton in V inton; th e F a rm e rs &
M erchants Savings B ank in W aukon;
th e K alona Savings B ank in K alona
and th e R andall S tate B ank in R an­
These five p rogressive B anks con­
tracte d w ith th e K irk G ross Com pany
for com plete m odernization p rogram s
—both inside and outside.
T he com pleted p rojects w ill see new
fro n t designs, drive-up w indow s, large
lobbies, new custom er service areas,
b e tte r te lle r w indow service and in ­
creased space devoted to custom er
relations. A ttractiv e new in te rio r de­
signs and m odern office equipm ent
w ill increase efficiency. All w o rk is
supervised by th e B ank P lan n in g Di­
vision of th e K irk Gross Com pany
w hich specializes in th e design and
m odernization of b an k buildings.
F o r com plete details on building or
m odernization, w rite to The K irk
Gross Com pany in W aterloo, Iowa.
Northwestern Banker, November, 1962
Federal Reserve Bank of St. Louis



Home Office

and Donna Griffin, a ssistan t cashier.
Officers of th e H um eston b ank w ill
be: B ert Millis, chairm an; K. W. R ich­
ard, president; Alice Akes, first vice
president; Roy W. Meadows, vice
president; T. R. H enderson, vice p re s­
ident and cashier; Reva Gould, assist­
a n t cashier, and C. C. Comegys, farm
rep resen tativ e.
Mr. Comegys w as form erly m anager
of the Leon b a n k ’s G arden Grove of­
fice. The new in stitu tio n has not
obtained perm ission to operate it. The
G rand R iver office w ill be continued.
Mr. R ichards and Miss Akes w ill be
active in th e m anagem ent of both
banks. Mr. Millis is a Des Moines
businessm an, residing in W est Des>.
Moines. Mr. M eadows is an atto rn ey
in Des Moines.

2 5 t h A n n iv e r s a r y
D. W. E lliott, m anager of the Craig
office of th e S ecurity Savings Bank,
Ireton, w as honored recently w ith an
a n n iv ersary d in n er p a rty observing
his 25th an n iv ersary w ith the bank.»-


Des Moines, Iowa


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.


Vice President

Work P rogressing
The F irs t T ru st and Savings Bank,
Rem sen, rep o rts th a t w ork is in prog­
ress on its new building and th a t it
w ould be ready for occupancy by next

M an son B a n k S o ld
E. W. Youell, Jr. has purchased
controlling in te re st in th e M anson
S tate Bank. No personnel changes
w ill be made.
Mr. Youell is p resid en t of th e State
B ank of T erril, and cu rre n tly resides
in Lincoln, N ebraska.
The M anson b an k has capital of
$75,000 and su rp lu s of $100,000. De­
posits are over $3 m illion.

"Central States Bank-E
brings the bank
more depositors"
reports Mr. John V. Burrough,
Executive Vice President
Commercial Bank, Alma, Arkansas
“It is a service that a bank can give its cus­
tomers and to the community, permitting
many who otherwise could not get insur­
ance to enjoy its benefits.
“It brings to the bank more depositors.
We have had several open an account with
us so they can share in the plan.
“The manner in which Central States men
have presented the Bank-Health plan, and
the way our customers have responded,
has been a pleasure to us.”
Bank-Health has many attractive features
— frequently brings a bank new cus­
tomers. It also is a service that returns a
profit to the bank. May we provide you
with complete details?



^Voluntary Insurance Protection

Ce n t r a l S t a t e s
H e a l t h & L i f e C o.
of Om aha
T. LESLIE KIZER, President





Federal Reserve Bank of St. Louis





D ire c t N o tifica tio n : always a little faster
M any Iowa B anks tell us enthusiastically th a t our new
F or com plete inform ation on how our new D irect NotifiD irect N otification P lan is an unusually fast, low-cost w ay cation P lan can serve your bank better, ju st drop us a line,
to rep o rt non-paym ent checks of $500 or more.
U nder our new system , one phone call does th e work of
two telegram s when th e previous endorser is not th e bank
of deposit. Also, notification is immediate. M ore com plete
inform ation can be obtained by phone. And th e cost is
NELSON, Vice President
BOB BUENNEKE, Assistant Cashier
substantially less.
GEORGE E. HARNAGEL, Assistant Cashier
BEN EILDERS, Assistant Cashier
T he benefits are even greater when you use our new
JOHN HUNT, Assistant Cashier
D irect N otification P lan w ith our round-the-clock m ail
pick-up and night tra n sit service.

We’re here to help you get what you want

Io w a -De s M o i n e s (ff)National Bank
Sixth and Walnut, Des Moines U
Federal Reserve Bank of St. Louis


CHerry 3-1191

Member Federal Deposit Insurance Corporation