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Vol. 1. No. 27 Des Moines, Iowa November 8,1971 Fed Schedules 3 Hearings on H .C . Activities V W ¡m The Board o f Governors o f the Federal Reserve System has scheduled three hearings during November on ques tions relating to the types o f bankrelated acquisitions that may be made by bank holding companies. The Board also has proposed a regu latory amendment to clarify the status o f one-bank holding companies that fall within one or more o f the various grand father clauses o f the 1970 amendments to the Bank Holding Company Act. Comments on this proposal should be received by December l| 1971. In general, the proposed amendment to Regulation Y would provide that any grandfathered company which acquired a second bank would have two years from that date to dispose o f any activities not closely related to banking. This time period would be shorter if the com pany’s right to continue the activities expired sooner under the grandfather clause. Under the grandfather clause, some companies that controlled one bank on December 31, 1970, are gi^en 10 years within which to divest non-banking activ ities; in other cases no divestiture is required; and in a few cases exemptions from divestiture may be granted by the Board. The Board set the following sched ule o f hearing dates on other bank holding company questions: 1. November 8 on whether limits should be placed on the size, geographic area and types o f activities o f already established mortgage companies that may be acquired by bank holding com panies. The Board has seven applications o f this type under consideration. It also expects that the hearing will enable it to adopt simplified procedures for acquisi tions o f mortgage companies where pub lic interest factors are favorable. The ly related to banking as to be a permis sible activity for bank holding com panies. However, the Board has not yet made a similar ruling with respect to the leasing o f real property. It is inviting comments on whether “ such real proper ty leasing activities . . . are so closely related to banking or managing or con trolling banks as to be a proper incident thereto.” The National Association o f Real Estate Boards has filed a letter with the Federal Reserve Board objecting to the FRB proposal to permit bank holding companies to engage in property manage ment services. NAREB says such activity by banks is not closely related to bank ing and does not produce benefits to the public. hearing will be conducted by available members o f the Board in the Board R oom o f the Federal Reserve Building, 20th Street and Constitution Avenue. 2. November 12 on an application by First National Factors, a subsidiary o f Prime Drops Again First National Boston Corporation, to First National City Bank o f New acquire certain assets o f CromptonYork, which had earlier in October led Richmond Factors, New York. Competi the move among the nation’s leading tive aspects o f the factoring industry banks to a floating prime rate, an itself as they relate to bank holding nounced last week it had dropped its companies will also be discussed at this prime to 5-5/8% from 5-3/4%. First presentation which will be in the Board National City’s prime is pegged at 1/2% R oom . 3; November 12 on the Board’s above the commercial paper rate, and can fluctuate from week to week. proposal, announced August 17, to per mit bank holding companies to serve as Burns Opposes Interest Controls investment advisers to mutual funds. This presentation will begin at 10:00 Federal Reserve Board Chairman a.m. in R oom 1202. Arthur F. Burns testified before the. Also, the Federal Reserve Board has House Banking Committee last week that invited comments by November 26 on an 'he strongly opposes mandatory controls application by First Chicago Corp. for on interest rates. He said he thinks a: permission for its subsidiary, First Chica successful wage and price control pro go Leasing Corp., to lease real property gram will work in the long run to reduce to McDonald’s Corporation. Earlier this interest rates, but the outlook for such year the Fed Board determined that the INTEREST CONTROLS. ! . leasing o f personal property was so close (Continued on back page) You’re a step ahead when you call for the services of our correspondent "pacesetters." B ankers Trust Bob Reed Verlon Britt https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Joe Snyder SIXTH AND LOCUST, DES MOINES Member. Federal Reserve System and Federal Deposit Insurance Corporation 515 - 283-2421 cently received FDIC approval to exer cise limited trust powers. N EBRASKA NEWS LINCOLN: Lincoln Bank East, 68th & “ O ” Streets has filed a charter applica tion with the department o f banking. Further Prime Rate Drop Following the news that First Nat ional City Bank o f New York had drop ped its prime rate to 5-5/8% Monday (see front page), Chase Manhattan Bank later announced it was reducing- its prime from 5-3/4% to 5-1/2%. It was learned that other major banks in New York and Chicago were following the Chase rate. IOWA NEWS CROMWELL: J. R. Moore, 57, executive vice president and cashier o f the Crom well State Bank, died o f a heart attack October 25 on his farm near Creston. He had attended the Ag Breakfast Confer ence at the Iowa Bankers Association convention in Des Moines that morning. Upon returning home at noon he went to a field to move some cattle and a passing motorist saw him collapse o f a heart attack. The coroner said he died instant ly. He is survived by his wife and his mother-in-law, Mrs. Omar Cannon. DES MOINES: The Federal Reserve Board has approved purchase o f Valley Bank and Trust Company by Banks o f Iowa, Inc., Cedar Rapids bank holding firm. Full details are in the November N ORTHWESTERN B ANKER maga zine. EDGEWOOD: Community Savings Bank will hold open house for bankers from 4 :0 0 p.m. to 7 :3 0 p.m., Tuesday, Nov ember 9 to view the new banking quar ters. A buffet will be served at the Legion Club. IOWA FALLS: The Iowa Falls State Bank recently received approval from the FDIC to exercise limited trust powers. RED OAK: Hawkeye Bancorporation has filed an application to the Federal Reserve System for prior approval to acquire voting shares o f : The Clay Coun ty National Bank, Spencer; Kellogg Sav ings Bank, Kellogg; First Federal State Bank, Des Moines; State Bank and Trust,Council Bluffs; Camanche State Bank, Camanche and Jasper County Savings Bank, Newton. It has also signed an agreement in principle to purchase at least 51% o f the stock o f Citizens Nat ional Bank, Boone. WELLSBURG: Peoples Savings Bank re There are so many ways we can help you That's why over half the banks in Iowa are — MNB correspondents Tom Martin Assistant Vice President MERCHANTS NATIONAL BANK CEDAR RAPIDS, IOWA 52401 MEMBER F D I C. We know the importance of your bank to your community. Correspond with .us. IOWA-DES MOINES NATIONAL BA N K Bob Buenneke https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Member Federal Deposit Insurance Corporation OMAHA: Allen P. Stults, president o f the ABA, announced the appointment o f F. Phillips Giltner, president o f the First National Bank o f Omaha, as a member o f the correspondent bank advisory board o f the American Bankers Association. Mr. Giltner is widely known in corres pondent bank circles. OMAHA: A former assistant vice-presi dent o f First West Side Bank has been charged with embezzling $48,000. U.S. District Attorney Richard A. Dier charges that Donald Dean Fleming, 38, embezzled $48,000 “ o f the funds and credits o f the bank” between July 15, 1969 and November 30, 1970. Details o f the alleged embezzlement will be dis closed at a subsequent hearing according to Mr; Dier. UEHLING: A charter has been issued by the department o f banking to the Uehling State Bank. ILLIN O IS NEWS CHICAGO: Harold C. Carlstead has been named to the board o f directors o f Olympia Bank according to Alfred J. O’ Malley, chairman o f the board. CHICAGO: The Northern Trust Com pany has received approval for a branch to be established at the northeast corner o f Adams and Wacker Drive. CLINTON: The De Witt County Nat ional Bank recently received approval for a branch to be located at 301 S. Grant. EVANSTON: Michael N. Noles has been named manager o f the consumer loan department o f the Evanston Bank ac cording to James P. Scheurenbrand, pres ident. He was formerly assistant loan officer. GURNEE: A charter has been approved for the Gurnee National Bank. Frank C. Potter was named as agent. M h HILLSBORO: Montgomery County Nat ional Bank recently received approval for a branch to be located at 100 South Hamilton Street. WORTH: David D. Lambertsen has been appointed an officer o f the First State Bank o f Worth according to Russell D. Boyer, executive vice president. He will be assistant cashier in loans and opera tions. & Call on the "Performance TeamV.. Uniquely prepared to handle uncom m on transactions uncom m only well. F I R S T N A T IO N A L B A N K & T R U S T C O M P A N Y O F L IN C O L N 13th and M Street • Lincoln, Nebraska 68501 • Member, F.D.I.C. MINNEAPOLIS: Northwest Bancorporation has filed an application for prior approval to acquire the voting shares o f Farmers and Merchants State Bank o f Stillwater. N o rth e a st Io w a B a n k s MINNEAPOLIS: The election o f tw o directors and a staff prom otion have been announced by First Southdale Nat ional Bank. The new directors are Emma L. Rovick and Daniel D. Schmelz. John DePalma was prom oted to assistant man ager o f the installment banking depart ment. The announcements were made by D. W. Judkins, president o f the bank. When you’re ready for it, make an appointment to see our computer compute, it can solve a lot of problems for your bank. When your bank needs this or any other service, call Bill Rickert or Ken Young. MINNEAPOLIS: Charles F. Pierson, a director o f First National Bank o f Minne apolis, and chairman o f the board o f Farmhand, Inc. died recently. National Bank of Waterloo MINNESOTA NEWS MINNEAPOLIS: Frederick L. Deming, president o f Independent Bancorporation, a new bank holding company in Minneapolis, has been elected a director o f National City Bank o f Minneapolis. He was formerly president o f the Federal Reserve Bank o f Minneapolis, and most recently a partner in Lazard Freres & Co. BRECKENRIDGE: D. E. Wall, 41, presi dent o f the Farmers and Merchants Bank, died recently o f an apparent heart attack. Mr. Wall became president o f the bank 18 months ago following the death o f Duncan Barr. CAMBRIDGE: Robert C. Becklin has been named president o f the Peoples State Bank. He is a state representative o f Minnesota from Chicago and Isanti counties and has been active in the charcoal briquet industry for 12 years. NORTH DAKOTA INTERNATIONAL FALLS: James Kalstad was prom oted to vice president at the International State Bank. Muriel Leseman was named assistant vice presi dent and Keith Goulet has been named cashier. The announcements were made by Eugene S. Blair, president. MENDOTA HEIGHTS: Mid America State Bank, recently received approval to becom e a member o f the Federal Reserve System. KENMARE: The State Bank o f Kenmare recently received approval to increase its c a p ita l s t o c k from $100,000 to $200,000 by stock dividend, according to G. W. Ellwein, state banking commis sioner. WYOMING NEWS LUSK: Max T. Bird, executive vice presi dent o f Stockmans National Bank o f Lusk, who guided the founding o f that bank in 1953, died recently. He was a native o f Ireton, Iowa. TORRINGTON: Rex W. Tebbet, presi dent o f the Citizens National Bank in Torrington, recently announced the sale o f a large number o f shares o f stock in the bank to Joe Huckfeldt, president o f the Gering National Bank, Gering, Neb raska, and R oy Dinsdale o f Palmer, Nebraska. There will be no changes in officers or employees at the bank and Mr. Tebbet will remain as its chief officer. MONTANA NEWS RICHEY: The First State Bank o f Richey, a state member bank, recently converted to the Montana National Bank o f Richey. COLORADO NEWS DENVER: William M. White, 32-year old chairman and chief executive officer o f Great Western United Corp., has resigned from the board o f directors and execu tive committee o f The First National Bancorporation, Inc., and the board o f The First National Bank o f Denver, according to Montgomery Dorsey, chair man o f both firms. Mr. Dorsey stated that Mr. White and members o f his immediate family, including his mother, Mrs. Helen Thatcher White, with the exception o f Mahlon White, have dis posed o f their stock in The First Nat ional Bancorporation. Mahlon White re mains as a member o f the First National Bank board. The stock sale was reported to in volve about 80,000 shares o f stock, which at current market prices, would be worth more than $3 million. Earlier in October, Mrs. White’s brother-in-law, Frederick M. Farrar, sold 115,118 shares o f Bancorporation stock for almost $4 million, Mr. Farrar is one o f the princi- C0ULS0N CANNON AND MUIR Three of our men on your side at 1 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis r § fe ; hi Fred Coulson Tom Cannon C ommerce Bank ■ Dick Muir \of Kansas City You dont need us. We need you! c 99 Central National Bank & Trust Company pals o f a new bank holding company, Mountain Banks Ltd., which would have five banks in Pueblo, Colorado Springs and Denver. He sold his stock and resigned as a director to avoid a conflict o f interest, he said. INTEREST CONTROLS. . . (Continued from front page) rates during the next year is uncertain. This is due, he testified, to moving into a period with no historical precedent and too little on which to judge potential results. The main effort o f Mr. Burns’ com mittee on interest and dividends, ap pointed by President Nixon, will be directed initially to home mortgages and consumer credit — the two facets o f the econom y directly affecting families. He noted that rates on these loans are among the less flexible and tend to lag behind rate changes in the open money market. The effort o f his committee, he stated, will be to reduce this time lag. He opposed mandatory interest con trols in his testimony by stating, “ Let us never forget that while a legislature may impose an interest ceiling, it has no way o f compelling the owner o f investible funds to lend them to anyone.” Regard ing dividends, Mr. Burns said his com mittee thinks any increases in dividends during Phase II should be tied to the amount o f raises allowed for wage earn ers. Rates 25 cents per word per insertion. Minimum: 12 words. NORTHWESTERN BANKER 306 15th St., Des Moines, Iowa TRUST OFFICER T o manage growing trust department in $60 million bank. Must be ag gressive and have diversified e x perience. Age 30—45. Legal back ground preferred. Excellent oppor tunity. Write Box BTO, in care of NORTHWESTERN BANKER, 306 15th St., Des Moines, Iowa 5 0309. COMMERCIAL LOAN OFFICER T o manage department in $8 million central Wyoming suburban bank. Applicant should have lending e x perience, with some business pro motion background. Mail inquiries to: P. O. Box 2680, Casper, Wyo. 82601. FOR SALE Diebold Drive-up Window, excellent condition. Available for immediate delivery. William Be ohm, Tama State Bank, Tama, Iowa 52339. Telephone 515 /4 8 4 -4 6 2 0 . WANT ADS WANTED POSITION AVAILABLE $17 million Iowa bank seeks opera Manager for Bank Insurance Agency tions and accounting officer. Must in beautiful Northwestern Montana. have experience in operations and Send resume to File MIA, in care of accounting knowledge. Write File NORTHWESTERN BANKER, 306 WSB, c / o NORTHWESTERN BANKER 15th St., Des Moines, Iowa 50309. 306 15th St., Des Moines, Iowa 50309. WANTED Insurance Agency Manager for Bank POSITION AVAILABLE Agency in Northwestern Nebraska. To head country bank. Insurance ex Send resume to File NBA, in care of perience helpful. Good opportunity NORTHWESTERN BANKER, 306 for the right man. Write File CNB, 15th St., Des Moines, Iowa 50309. NORTHWESTERN BANKER, 306 15th S t., Des Moines, Iowa 50309. □ I would like to sell my STEVEN H. PARRISH GOLD LEAF SIGNS S p e c ia list to th e Bank T rad e ■ .....— Contact: J. Mason Henry, Pres. CHARLES E. WALTERS CO., INC. 5 Random Road Oák Ridge SUPERIOR, NEBRASKA 68978 — 0 majority bank stock. I would like to buy majority bank slock. Please Since 1922 P. O. Box 1313, O m aha, Neb. 68101 Phone: (402) 553-6400 . LA SALLE’S Teller Referral Guide can help your tellers work more efficiently LOCUST AT SIXTH AVENUE. DOWNTOWN DES MOINES. PHONE 243-8181. MEMBER FDIC. ■■ It’s a handy card that gives your tellers a complete step-by-step procedure for the proper handling o f their various opera tions. Yours without charge. Just write or phone Gy Kirk or Max R oy at the LaSalle National Bank in Chicago today. Telephone (3 1 2 ) 443-2774. LOWER YOUR FARM LOAN RISK By sending him DOANE’S Farming For Profit, the hard-hitting, factfilled monthly newsletter that pro vides help in management, produc tion and marketing. Free sample subscription for 6 months. Write D. R . Gorr, DOANE Agricultural Ser v ice , Inc., Dept. 701, 8900 Man chester Road, St. Louis, Missouri 63144. STATEMENT OF OWNERSHIP MANAGEMENT AND CIRCULATION (A ct o f October 23, 1962; Section 4369, Title 39, United States C’ode.) 1. Date o f filing - September 27, 1971. 2. Title o f publication - Northwestern Banker Newsletter. 3. Frequency o f issue - Weekly 4. Location o f known office o f publication - 306 Fifteenth Street, Des Moines, Iowa 50309. 5. Location o f headquarters or general business offices o f the publishers (N ot printers) - 306 Fifteenth Street, Des Moines, Iowa 50309. 6. Names and addresses o f publisher, editor and managing editor Publisher — Malcolm K. Freeland, 306 Fifteenth Street, Des Moines, Iowa 50309. Editor - Ben Haller, Jr., 306 Fifteenth Street, Des Moines, Iowa 50309. 7. Owner (if owned by a corporation, its name and address must be stated and also immediately thereunder the names and addresses o f stockholders owning or holding 1 percent or more o f total amount o f stock. If not owned by a corporation, the names and addresses o f the individual owners must be given. If owned by a partnership or other unincorporated firm, its name and address, as well as that o f each individual must be given.) Northwestern Banker Company, 306 Fifteenth Street, Des Moines, Iowa 50309. Malcolm K. Freeland, president, 306 Fifteenth Street, Des Moines, Iowa, 50309. Ben Hallty, Jr., vice president, 306 Fifteenth Street, Des Moines, Iowa, 50309. 8. Known bondholders, mortgagees, and other security holders owning or holding 1 percent or more o f total amount o f bonds, mortgages or other securities: Malcolm K. Freeland, 306 Fifteenth Street, Des Moines, Iowa 50309. Ben Haller, Jr., 306 Fifteenth Street, Des Moines, Iowa 50309. 9. Does not apply. 10. Does not apply. 11. Extent and nature o f circulation: A. B. C. D. E. F. G. Total No. Copies printed (Net Press Run) Paid circulation 1. Sales through dealers and carriers, street vendors and counter sales 2. Mail subscriptions Total paid circulation Free distribution (including samples) by mail, carrier or other means Total distribution (Sum o f C and D) Office use, left-over unaccounted, spoiled after printing Total (Sum o f E & F should equal net press run shown in A) Average No. copies each issue during preceding 12 months Single issue nearest to filing date 5,212 5*220 NONE 4,830 4,830 NONE 4,848 4,848 282 272 5,112 5,120 100 100 5,212 5,220 I certify that the statements made by me above are correct and complete. MALCOLM K. FREELAND Publisher Vol. 1. No. 27 Northwestern Banker Newsletter is published weekly by the Northwestern Banker Company, 306 Fifteenth Street, Moines, Iowa 50309. Subscriptions 25$ per copy, $6 per year. Second c la ss postage paid at Des Moines, Iowa. Address all Digitized forDes FRASER mail subscriptions, changes o f address (Form 3579), manuscripts, mail items to above address. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis
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