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Federal Reserve Bank of St. Louis
SI S
T R O W B R ID G E
P r e s id e n t ia l
CALLAW AY
N o m in e e In v e st m e n t
A ss o c ia t io n
B a n ke rs
...a
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Federal Reserve Bank of St. Louis
U nion
of great
Significance
T
H E union o f the State Bank o f Chicago and The
Foreman National Bank will result in an institm
tion with invested capital o f $38,000,000 and resources
exceeding $220,000,000.
United, these two Chicago banks with principles
and ideals so closely paralleling one another become
one o f the world’s truly complete banking institutions.
A s a correspondent bank, this united institution
offers you even greater facilities, the wide experience,
and the desire to render service which are essential
to a successful relationship.
St a t e B a n k
of
C
hicago
La Salle and M onroe Streets
T he F o rem a n N a t io n a l B a n k
T h e F o r e m a n T r u s t A n d S a v in g s B a n k
La Salle and Washington Streets
.
3
N o rth w e ste rn Banker
Des Moines
The Oldest Financial Journal W est of the Mississippi
OCTOBER, 1929
Num ber 507
In T h is Issu e
J u s t B e tw e e n U s
14
17
Across from the Publisher
You Have Something to Sell!
The A. B. A. Convention
San Francisco is far from the middie west, and consequently most of
our readers will not have been able
to attend the annual convention of
the American Bankers Association
held around October 1, in the
Golden State. However, several ad
vance reports and addresses already
released appear in this issue and will
give our readers an idea of the prob
lems discussed at the convention.
Next month in our November is
sue, readers will find some of the
outstanding convention addresses
and reports featuring the coverage
that this publication always strives
to give such important conventions.
34th Year
-O-
By Walter E. Devlin
18
Putting Them Up— and How
By Roscoe Macy
Legal Department
Farms and Farming
20
21
By C. A. Craig
22
The Banker’s W ife
By Lyda Collins
Solving the Check Filing Problem
Our D epositor’s Dollar
The Next President of the L B. A.
23
25
28
A Character Sketch
34
News and Views
By Clifford DePuy
Thank You, Mr. Fletcher
W . G. Fletcher, president of the
Farmers Savings Bank of W illiam s
burg, Iowa, was anxious to secure
some data and charts on the cost of
operation of typical Iowa country
banks, so he wrote to the N O R T H
W E S T E R N B A N K E R for assist
ance. Through the kind aid of the
office of the secretary of the Iowa
Bankers Association, we were able
to locate and send to him exactly the
kind of a report he desired, prepared
by the bank analysis committee of
the Iowa association.
Mr. Fletcher says: “ Many thanks
for the sheet of costs of Iowa banks.
It is exactly what I wanted. The
N O R T H W E S T E R N B A N K E R is
so full of good practical material
that we all read it with much inter
est each month.”
C L IF F O R D D E P U Y
Publisher
G ER ALD A. SN ID E R
Associate Publisher
Bonds and Investments
W hat Is an Investment Trust?
By Dr. Paul M. Atkins
Investment Bankers Convention
The Time to Buy Bonds
Chicago Investment News
48
52
56
By Wm, H. Maas
Insurance
Iowa Section
South Dakota News
Bankers’ Wants
Nebraska News
Minnesota News
North Dakota News
4
• ONE
OF THE
71
89
101
104
105
109
113
•
DeRuy-Banking Publications
R. W . M O O R H E A D
Editor
W M . H. M AAS
1st National Bk. Bldg.
Vice President
Chicago
F R A N K P. SY M S
25 W est 45th Street
Vice President
New York
H. H. H A Y N E S
Associate Editor
Member, Audit Bureau of Circulations
Member,
Financial Advertisers Association
45-69
45
OMAHA
M INNEA PO LIS
.o f f i c e s
DES\MCHINES'3’
M ILW A U K EE
C h ic a g o
F. S. L E W IS
840 Lbr. Ex. Bldg.
Minneapolis, Minn.
Special Representative
N EW C YO R K
Northwestern Banker, published monthly by the DePuy Publishing Company, Inc., at 555 7th street, Des Moines, Iowa.
Subscription, 50c per copy, $3.00 per year. Entered as second-class matter at the Des Moines post office. Copyright, 1929.
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Federal Reserve Bank of St. Louis
Northwestern Banker
October 1929
4
I n resources, in policy, and
in performance, throughout
tw o-th ird s o f a century,
the First National Bank of
Chicago has proved a thor
oughly satisfactory corre
spondent.
R E S O U R C E S
E X C E E D
$600,000,000
The First N ational
Bank o f Chicago
First Union Trust
and Savings Bank
”
Affiliated
FRANK O. W ETM ORE
FR ED ER ICK H . R A W S O N
H A R R Y A . W H EE LER
M E L V IN A . T R A Y L O R
CH A IR M A N
C H A IR M A N
VIC E-CH AIR M AN
PRESIDENT
E D W A R D E. B R O W N
JO H N P. O LESO N
C R A IG B. H A Z L E W O O D
B E N TLE Y G . M c C L O U D
VICE-PRESIDENT
VICE-PRESIDENT
VICE-PRESIDENT
VICE-PRESIDENT
Division F — Banks and Bankers
J O H N F. H A G E Y
GEO. H . D U N SC O M B
JO H N J. A N T O N
VICE-PRESIDENT
VICE-PRESIDENT
ASST. VICE-PRESIDENT
T H O M A S J. N U G E N T
ASST. VICE-PRESIDENT
L E I.A N D L. H O B B S
E D W A R D J. JEN NETT
M E L V IN H . THIES
ASSISTANT CASHIER
ASSISTANT CASHIER
ASSISTANT CASHIER
Northwestern Banker
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Federal Reserve Bank of St. Louis
October 1929
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Federal Reserve Bank of St. Louis
5
o 4 Cedar Rapids Dank
Ui&i « 11S?< !
ifmi
!» * « ! «SSggïs*
HI II SI 1 ill il II II HH il II
ß U i III* 5 îî
Cedar P a p ids
Servicing cÀïl lovOa
NO TWO BANKS
— have exactly the same requirem ents w hen it
comes to correspondent service.
B asically, per
haps, m u ch the same m ethods w ould apply to all,
but there still rem ains that intangible, the per
sonal elem ent.
C areful attention to the in dividu al requ ire
m ents o f each client, a distinct personal touch,
is what m akes M erchants N ation al service so sat
isfactory.
C ustom ers’ needs guide our service,
always.
MERCHANTS
NATIONAL BANK
C edar \Rapids
Iow a
Northwestern Banker
October 1929
6
money
i s
- my trip
is ruined
T hus exclaimed a young lady who
recently arrived in N e w Y ork from
P ittsb u rg h . She w as bound for
Europe, her steamer was soon to sail
but she had unfortunately left her
Travelers Cheques at home.
A stranger in a strange city it seemed
that her trip would be ruined— until
she w ent to the Am erican Express—
and then things began to happen. She
w as advised to telephone her home
in Pittsburgh and arrange for some
one to take her cheques to the local
Am erican Express office. T h e R esi
dent M anager there, realising the
urgency o f the matter, telephoned to
the A m erican Express headquarters
at 65 Broadw ay, N e w York, that he
had received the cheques. The young
lady established the necessary identi
fication and new cheques w ere issued
to her immediately. She caught her
steamer, thankful to the organisation
back o f Am erican Express Travelers
Cheques and grateful to the bank
w hich recommended the sky-blue
travel currency.
Bankers know the story o f A m eri
Northwestern Banker
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Federal Reserve Bank of St. Louis
October 1929
can Express refund service but this
particular transaction, though un
usual, happily illustrates one o f the
unique service advantages o f A m er
ican Express Travelers Cheques.
There are more than 26,000
E xp ress offices th ro u g h o u t the
United States and Canada forming
a netw ork o f near-at-hand service
stations alw ays ready to assist
your clients w ho carry Am erican
Express Travelers Cheques.
fo r safety
.
A
J and spendahilrtij>
m e r ic a n
Steamship tickets, hotel reservations, itineraries,
cruises and tours planned and booked to
any part o f the world by the A m eri
can Express Travel Department
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Federal Reserve Bank of St. Louis
C o n t in e n t a l I llin o is
C o m pany
C H IC A G O
NEW
YORK
f= *
Underwriter, wholesaler and
retailer o f investment securities
Des Moines Office
2 i/f. Equitable Building
Milwaukee
Minneapolis
Detroit
Cleveland
Kansas City
St. Louis
Omaha
Wichita
Atlanta
Houston
f=>
Capital • 20 million dollars
8
Great Emancipators
the Reaper in 1831
and now the
FARMALL
Â
HUNDRED YEARS A G O ,
while men and women
toiled for their daily
bread in the fields of the world,
Cyrus Hall McCormick built a
strange machine which did the
work o f several men. That
machine was the McCormick
Reaper. O n the heels o f the
Reaper, both Agriculture and
Industry leaped forward with
great strides.
ing another far-reaching
ion in farming. This mathe McCormick-Deering
, the first true allpurpose
In time to come, the in'
o f the Farmall will stand
? invention o f the Reaper
choolboy’s history hoo\.
The Reaper began man’s eman
cipation from hand labor in the
harvest. The Farmall now frees
him from dependence on slow
animal power.
The harness, the curry comb,
and the pitiless whip are being
put in the corner where the
cradles and sickles of old have
gathered the dust of generations.
Even on the row-crop farm,
where the horse makes his last
stand, there is no longer any
sound reason for keeping him. A
thousand farmers have already
joined the Horseless Farmers o f f
America. In farming, just as in /
industry throughout the world,
the capacity of the machine and
the power of the motor are taking
up the burden of the human race.
INTERNATIONAL HARVESTER COMPANY
606 So. Michigan Ave. ° UmOTf>orated)A
Chicago, III.
FARMALL
Northwestern Banker
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Federal Reserve Bank of St. Louis
October 1929
The F A R M A L L , with 2 or 4-row
planter, plants from 25 to 60 acres
o f corn in an 8-hour day. Culti
vates 2 or 4 rows; with 4-row out
fit it cleans 35 to 50 acres a day,
and in later cultivatings 50 to 60
acres a day. Flandles all haying
jobs, cutting a 14-ft. swath with
7-ft. Farmall-powered mower and
7-ft. trailer mower attached, also
rakes, loaders, etc. Plows two fur
rows, pulls all seed-bed imple
ments, and operates grain and
corn harvesting machines. A vail
able for all drawbar, belt, and
power take-off work.
9
C en t r a l H a n o v er
IL s ta b lis lie s A
m
R e v id e n t R e p r e s e n t a t i v e
B u e n o s A ire s
In addition to its representatives in London, Paris, Berlin and
¿Sydney, Central H anover lias established another resident represen
tative office at 501 R oque ¿Saenz Pena, Buenos Aires, A rgentina.
T im
is a logical recognition of the increasing importance ol
¿South Am erica m our foreign business relations.
resident representatives
cooperate with local
Central H anover
hanks
ensuring
its
customers the maximum m service in the financing and expediting
of shipments and reliable trade information.
T h e services ol the foreign department as well as the eoinplete
hanking and trust facilities of Central H anover are at the disposal
of its correspondents an d friends m the hanking world everywhere.
C en t r a l H a n o v er
BANK A N D TRUST COM PANY
N E W
Y O R K
14 Offices in 14 JVkanhattan Centers
N O ¿SECURITIEiS FOR ¿SALE
C A P IT A L ,
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Federal Reserve Bank of St. Louis
SU R P L U S
AND
U N D IV ID E D
P R O F IT S
OVER
ONE
HUNDRED
M IL L IO N
DOLLARS
Northwestern Banker
October 1929
10
A
C h i c a g o
O f f i c e
For
Your
Bank
A n office where bond specialists will survey your investment needs, analyze financial
structures behind issues, endeavor to make purchases for you at the best prevailing prices.
J
V
When Your Bank
Is Buying Bonds—
write, wire or telephone Central Trust
Company o f Illinois to obtain at once
the services o f the same men w ho pur
chase bonds for us* Make this office
you r o ffice for all o f your C h ica g o
business.
CCOMPANY
entral T rust
OF ILLINOIS
208 S O U T H L A S A L L E S T R E E T
Northwestern Banker
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Federal Reserve Bank of St. Louis
October 1929
11
C o n d e n se d F in an cial S tatem en t
FEDERAL SURETY COMPANY
D A V E N P O R T , IO W A
As of March 31, 1929
As submitted to and approved by the United States Treasury Department.
LIABILITIES
ASSETS
C a s h ____________________________
.$1,232,154.42
Capital Stock
Call L oa n s______________________
.
Reserves :
100,000.00
$1,290,000.00
Stocks and Bonds_______________
_ 1,295,253.90
For losses
Real Estate Mortgage Loans___
.
701,118.25
For Unearned Premiums
Due from other Companies____
Due from Agents_______________
_
.
119,472.15
596,850.98
Miscellaneous A ssets___________
.
245,824.07
Total Net Admitted Assets
.$4,374,283.91
Interest & Dividends Due and
Accrued_____________________
83,610.14
___
404,098.30
729,572.52
For Commissions, Taxes, etc._
91,585.12
Other Liabilities
___
146,568.30
Surplus, net
_
1,712,459.67
Total Liabilities
-
$4,374,283.91
OFFICERS
CHARLES SHULER
FRANK B. YETTER
Chairman
Vice President
W. L. TAYLOR
THEO. G. LORENZEN
President
Secretary-T reasurer
GEO. E. DECKER
CHARLES D. ROBBINS
Vice President
Chairman Finance Committee
CHARLES PAUSNER
W. H. STUART
Vice President
Asst. General Manager
DIRECTORS
H. A. BISHOP
Director Western Union Telegraph Company,
Bridgeport, Conn.
M.
LANDAUER
Member of the firm of Simon & Landauer
Davenport, Iowa
C. W . BORG
Founder of Borg & Beck (now Borg Warner),
Davenport, Iowa
ALFRED C. MUELLER
Capitalist and Attorney at Law, Davenport, Iowa
M. H. CALDERWOOD
Banker; President, Mississippi Valley Fair & Exposition ;
Ex-President, Iowa Bankers Association,
Davenport, Iowa
JEREMIAH F. CONNOR
Attorney, New York City
GEORGE E. DECKER
President of the Register Life Insurance Company;
Director of the American Commercial and Savings Bank,
Davenport, Iowa
FRANK H. ELLIS
P. W . Chapman & Co., Inc.
New York City, and Chicago
H. C. KAHL
Director, Citizens Trust & Savings Bank ;
Vice President, Walsh Construction Company,
Davenport, Iowa
CHARLES PAUSNER
VanderPoel, Pausner & Webb, Inc., New York City
CHARLES D. ROBBINS
Charles D. Robbins & Company, Members of New York
Stock Exchange, New York City
CHARLES SHULER
Director, American Commercial and Savings Bank, Betten
dorf Co. ; Director and President of the Colorado Utah
Coal Company, Davenport, Iowa
W . L. TAYLOR
President, Federal Surety Company; Director and President
Standard Federal Fire Insurance Company
W . IRVING THROCKMORTON
Throckmorton & Company, Bankers, New York City
FRANK B. YETTER
Active Vice President, American Commercial and Savings
B ank; Director, Register Life Insurance Company;
Ex-President, Iowa Bankers Association
Davenport, Iowa
Writing all forms of Fidelity and Surety Bonds, Accident & Health, Autom obile, Burglary,
Plate Glass, and other form s of Casualty insurance
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Correspondence solicited from agents of unoccupied territory
“ A National Institution o f SERVICE”
Northwestern Banker
October 1929
12
HEME'S H O W -to
— B uild small unprofitable savings into profitable
accounts
" R e v i v e dorm an t savings accounts
— Establish a R eal Estate Loan D epartm ent
— Advertise for large construction loans
— Advertise for small housing loans
" S o l i c i t correspondent bank accounts
— Sell com m ercial banking to business m en
— Sell the checking account as a financial service
— Inaugurate and ann ounce the service charge on
checking accounts
— M eet trust objections in selling
— Fit trust advertising into a general cam paign
— A n alyze the trust departm ent
"P r e p a r e institutional copy for investm ent houses
— D ev elo p sales p rom otion for investm ent houses
— C oord in ate sales, buying, advertising and sales
p ro m o tio n for investm ent houses
-----------------------TO FIND OUT—ATTEND THE—---------------------
Fourteenth Annual Convention
FINANCIAL ADVERTISERS
ASSOCIATION
HOTEL BILTMORE
O c to ber
30
TO
N o vem ber 2
A
Northwestern Banker
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Federal Reserve Bank of St. Louis
tlanta
October 1929
-G eorgia
THEY ARE BOTH
OUR CLIENTS
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
and we serve their very different
needs with equal enthusiasm
AMERICAN
BANK
COMMERCIAL AND SAVINGS
DAVENPORT, IOWA
Northwestern Banker
October 1929
14
c ro ss íA e P e s Jç ,
ro m
the P u b lis h e r
If there is any one im
pression that can be
gained from the amaz
ing growth of the group banking idea in the
northwest, it is the conclusion that the executive
heads of these groups have fully sensed the rich
ness and possible development of the great north
west.
In reality, it is an empire of its own, richer than
the wildest dreams of ancient kings. Take the
combined states of Minnesota, Wisconsin, Iowa,
North and South Dakota, Montana, peninsular
Michigan and Nebraska and you have an empire
equalling in area, Germany, France and Spain
combined, yet populated by only 11,000,000
people, as compared with 124,000,000 inhabitants
of the three European countries.
What are the economic facts regarding this
great area? It is the leading dairying section
of America. It produces one third of all the wheat
and corn of the country. It raises almost all of
our flax. Its iron, copper, silver, gold and coal
mines seem inexhaustible. It is a producer of
butter, cheese, poultry, barley, oats, rye, pork,
beef, wool and lumber. It is virtually a self-sus
taining area, whose people could live indefinitely
if shut off forever from the rest of the world. And,
through its tremendous iron, coal and waterpower
resources, this area could— and will—add to its
industries without limit.
These facts are evidently in the minds of the
group banking leaders who have torn down the
Chinese walls that seem to have previously sub
divided this great area into small sections and
are thinking in terms of a northwestern Empire.
Touching on this subject at the A. B. A. conven
tion in San Francisco, Trevor O. Hammond, Mon
tana banker, made this comment:
“ Secondary industrial development in the
Appraising the
Northwest
Northwestern Banker
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Federal Reserve Bank of St. Louis
October 1929
Northwest is well under way, but, if it is to hold
and expand its markets, it must have the financial
resources which its competitors likewise have, and
which the individual institution is unable to
supply.
“ No part of the country has richer or more
varied resources than the states in this district.
Their citizens are not content that the only benefit
they derive from these resources be their extrac
tion ; they want a chance at the increment incident
to their processing into finished articles of com
merce.
“ They want to turn their wheat into bags of
flour; their flax and zinc and lead into paint; their
iron ore into road graders, safes, filing cabinets,
barb wire; their copper into wire and rod and
brass and bronze; their manganese into steel al
loys ; their hogs into hams and bacons; their peas
and beans and corn into canned articles of the
grocery store—their thousand and one other raw
products into such shape that they will be ready
for the consumer.”
A year ago the
banking w o r l d
w a s startled by
announcement from the National City Bank of
New York that it was about to inaugurate a small
loan service whereby borrowers might borrow up
to a thousand dollars without collateral, and with
out service charge, at six per cent interest, but
with the notes signed by other responsible parties.
A year has elapsed and now comes the statement
from the bank that while the first year’s operation
was conducted without profit, as expected, the in
creasing volume of business gives promise that the
service will soon pay its own way.
Figures on the first year’s business are ex-
Serving the Small
Borrower
15
tremely interesting. More than fifty thousand
New York families were aided by this plan and
loans totaling sixteen and one-half million dollars
were made. Losses are described as “ negligible.”
This is attributed by the bank to the fact that in
terest of three per cent compounded monthly, was
paid on the deposits as they were made.
The average borrower is described as thirty-four
years of age, in the same position for five years,
earning $2,755 per year, married and the parent
of one child. The average loan made was $320.
Medical and dental service was the major pur
pose for which loans were made, with the payment
of other debts and loans, purchase of home equip
ment and business emergencies following in that
order.
All in all, the experience of this bank offers an
interesting study, and on the surface, appears to
be optimistic, although it may require another
year or two of operation to tell the tale.
Bankers’
Licenses
rT
Unnecessary
As '" ’A 1"'d l be
mi‘ttee on the M.
expected, the com-
censing of banks and bankers, in its report at the
American Bankers Association in San Francisco,
had little if anything to report.
Headed by Secretary AY. AY. Bowman of the
Kansas Bankers Association, the committee re
ported that there are no states in the Union having
or considering the licensing of bankers, except in
a limited way in Nebraska, where bank executives,
charged with the responsibility of making loans,
are required to secure a license from the state.
Furthermore, the committee declares the licens
ing of bankers is impracticable and useless. To
quote from their report:
“ The appointment of a public examining board
with the requirement that all who enter banking
shall appear before them and pay a license fee,”
says the committee, “ is but an added piece of
useless machinery, adding nothing to efficiency.
Good bankers become better bankers, not by being
branded by some public board, but when diligently
and patiently they have received training in bank
ing and when the grace of God rules in their
hearts. ”
Raising the standards of qualification of all
those who now or may in the future hold official
positions in banks is eminently desirable, says the
committee, but this cannot be accomplished by
legal fiat nor by rituals prescribed by an adminis
trative board. The law can do little or nothing to
qualify men to be good bankers, it says.
This is sound logic, indeed. An honest banker
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Federal Reserve Bank of St. Louis
is not made more so by an engraved diploma, nor
is conservative banking engendered by the pay
ment of a license fee.
The r e m a r k a b l e
growth of trust com
pany business is direct
testimony that bankers are increasingly aware of
the hazards of estate settlements. AYell might they
be, in view of the fact that, according to a recent
survey conducted by the Central Hanover Bank
and Trust company, estates of the United States
during the years 1927 and 1928 showed an average
shrinkage of 18.09 per cent in the process of settle
ment. It costs money to die.
That the trust companies have their work cut out
for them is clearly shown in this report, taken from
government figures. Of the 18.09 per cent, debts
and mortgages accounted for half the shrinkage,
while the balance was due to funeral and admin
istration expenses, and federal and state estate and
inheritance taxes.
On estates of from $100,000 to $28,000,000, cor
porate stocks made up 38.02 per cent of the entire
estate, with bond holdings totalling 15.59 per cent.
This is the composition of the average estate :
Real estate, 18.72 per cent; government and mu
nicipal bonds, 8.17 per cent; other bonds, 7.42 per
cent; corporate stocks, 38.02 per cent; cash, notes
and mortgages, 11.44 per cent; life insurance, 2.72
per cent; miscellaneous property, 13.79 per cent.
Trust companies and the trust departments of
our banks, have a real problem in cutting down
this 18.09 per cent shrinkage, for its solution lies
in the proper preadministration of estates.
It Costs Money
to Die
The Right Kind
of Farm Relief
Tbe Hawkeye prov-
Moines by a business
firm, that “ Of all that is good, Iowa affords the
best,” seems a verity again this year, with the an
nouncement that Iowa will soon begin harvesting
422,379,000 bushels of golden corn. That is the
kind of farm relief that the state needs most.
Along with Iowa, Nebraska will this year pro
duce about 192,000,000 bushels, Alinnesota, 146,000,000, and South Dakota, 94,122,000. Iowa’s
corn crop is rated as ten per cent over the state
having the next largest crop, which indicates that
Iowa will be unusually favored this year, since
the price is comparatively high.
Truly the middle west has much to be thankful
for this fall, as the farmer begins to figure his
year’s income.
Northwestern Banker
October 1929
16
“HERE’S LUCK’’
This outdoor picture was painted by Frank Stick. Mr. Stick is a companion
and friend of Zane Grey, writer of outdoor subjects
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
October 1929
Copyrighted by
The Thos. D. Murphy Company
Red Oak, Iowa k
17
Whether unit, chain, group or branch banking will dominate our financial
system in the United States will be determined during the next few years.
Whichever system renders the best service will survive.
In any event,
each bank, ivhether a unit, or group member, has something to sell and it
should be sold at a profit.
You Have Something to Sellabout two years ago. No action
URING the past 17 years,
was taken in any way. Analysis of
the average gross income o f
costs are of little value unless defi
all national banks from earn
nite action is taken based on the
ing assets has remained practically
information uncovered.
unchanged.
Operating
expenses,
The fifth division and a very imincluding interest paid have in
portant one is the development of
creased almost 50 per cent. The
profitable business.
Note I say
result being a 48 per cent decline
^
profitable business.
in net profits. The 100 per cent
The last two divisions, taking ac
increase o f the ratio between cap
tion in the correction of conditions
ital investment and deposits has
uncovered through analysis and re
enabled some banks to continue to
search,
and the development o f profitable
maintain a fair return. However, this
By W A L T E R E . D E V L I N
business are practically the same. Both
cannot go on indefinitely. I f banks are
President, Devlin and Bennett, Inc., Chicago.
are direct profit builders.
to increase their net profits, they must in
(From an address before Indiana
One unprofitable practice corrected will
crease their gross income without increas
Bankers Association)
not be sufficient to increase the income
ing their operating expenses. There are
of a bank to offset all increased operating
three main avenues opened: 1. To in
expenses. It will be the correction o f
crease the net return on earning assets.
many wrong conditions u n c o v e r e d
2. To increase the selling price o f the
through careful study and cost analysis
services. 3. Better operating or produc
o f each department.
tion methods. Efficient management.
Checking account department :
Bank management can be divided into
1. Service charge on low balance check
five divisions :
ing accounts.
1.
Financial operation. This is p rop
2. Service charge on unprofitable check
erly termed the “ heart o f the bank.” In
accounts.
efficient loan administrations have been
3. Penalty for NSF checks.
the cause o f more bank failures than any
4. Float charges.
other single factor. It deals with the
5. Charge fo r imprinting check books.
conversion o f the depositors’ funds and
6.
Increase balances in present check
invested capital into earning assets, in
ing accounts.
cluding the setting up o f proper secondary
Savings account department:
reserves and investment accounts. Pa
7.
Correct method for computing inter
pers to follow will take up the discussion
est.
o f this division more in detail.
8.
Pay no interest on Christmas clubs,
2.
The second division is op era tin gor
tax clubs, etc.
production o f service. The handling and
9. Pay no interest on small balances.
recording o f transactions. Serving cus
10.
Reduce savings interest rates to 3
tomers in accordance with the best poliper cent.
cies. Setting up the proper organization
11. Build balances in present accounts.
to do it. Making the proper studies.
W ALTER E. DEVLIN
Miscellaneous:
Enabling the best possible service being
12.
Fair charge fo r cashier’s checks,
rendered to customers at the lowest cost,
drafts, etc.
eluding savings. An excellent paper on
and yet have satisfied enthusiastic em
13. Safekeeping o f securities.
bank costs analysis will he read later.
ployees.
The next or fourth division is profit 14. Purchase o f securities.
3.
Analysis o f costs. This is a very 4.
15. Telegraphic transfer o f funds.
ing on the information gained from the
important function o f bank management.
16. Service charge on small loans.
analysis o f costs. A cost analysis without
To know hoAV much it costs you to do
17. Amortization o f small loans.
application is worth very little. A banker
business. I f you do not know your cost,
18. Penalty on overdue notes.
a short time ago said his bank had em
how are you going to sell your service at
19. Eliminate overdrafts.
a price to yield proper profits ? W ho ployed a firm o f specialists in cost analy
You have noticed the charge— “ Nine
sis work to make a thorough diagnosis
ever heard o f a manufacturer simply put
teen Ways That a Bank Can Increase
o f his bank. A complete report wras made.
ting an arbitrary price on his product
Their Income.” Putting any one of these
The officers and directors studied it very
without knowing the cost. Yet that is
practices into effect will not increase
carefully. It was discussed for a short
what is being done in banking business
profits in a big way. But the combination
every day. Cost analysis covers depart time. The report was put into the files.
o f them all will work wonders. No wellI thas been there ever -since. That was
ments— production, and all accounts, in-
D
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Federal Reserve Bank of St. Louis
E L L IT 7
Northwestern Banker
October 1929
18
informed banker needs reminding that
bank profits are not what they should be.
He knows it and has known it for several
years. The indispensable nature o f bank
service entitles banks to an investment
return at least on a par with industrial
earnings, yet General Motors Corporation
last year with one-fourth of the invested
capital earned more money than all na
tional banks combined.
An analysis o f costs without action is
o f little or no value. A fter the analysis
o f costs are made the next step is to bring
about the proper action.
This can be
done through salesmanship and coopera
tion.
Salesmanship is persuading the cus
tomer to accept your viewpoint in the sale
and purchase o f goods or services. The
study o f the principles underlying sales
manship is a study o f the principles under
lying the influencing o f human behavior.
In the old days it used to be a generally
accepted theory that salesmen were born,
not made. Today sales organizations have
definitely discarded the old idea. They no
longer equip their salesmen with informa
tion about the company they are to repre
sent and the products or service they are to
sell, but also give them information on the
principles o f salesmanship and the appli
cation o f these principles in selling their
particular product or service.
The object o f the training is to show the
salesmen effective methods used in pre
senting a service or commodity which he
feels will be o f value to a client. There
should be no more reason fo r opposition to
a plan o f teaching your employees to be
come salesmen than the plan o f teaching
prospective lawyers how to present cases
in court.
A salesman is one who creates values in
the customer’s mind. Know your services
and be convinced o f their value. Learn
how to present your services so as to com
pete successfully for your portion o f your
customer’s dollars— competition is keen.
When one o f your customers gets hold
o f a dollar, thousands o f manufacturers
spending millions o f dollars in advertis
ing and selling are literally screaming to
secure a portion o f that dollar. Real estate
dealers, mortgage houses, building and loan
associations, bond houses, are advertising
and using intensive sales methods employ
ing excellent salesmen all with the purpose
o f selling their investments. Manufac
turers o f radios, automobiles, pianos, and
other luxuries are spending millions to
keep their factories busy. As a result
there is little or nothing left for the de
positor to put into the bank. W h y? Be
cause you have not convinced him o f the
values that lie would receive. Most banks
do not use the new sales and advertising
methods to compete with other lines of
products and investments.
The majority o f bankers are not thor
oughly sold on the value of the service they
are rendering. The time has come when
the public should be better informed. It
is a big job and cannot be done quickly.
But there is one thing certain— working
with tried and tested selling principles,
there is no question but what the banker
can meet successfully present day com
petition.
In a pamphlet entitled “ Survey o f Bank
Operating Ratios” issued recently by the
clearing house section o f the American
Bankers Association it states: “ It is
significant that while many banks answered
that a sendee charge plan was in effect, a
large number failed to show revenue from
this source. From the experience gained
(Turn to page 75, please)
IN THE GOOD OLD SUMMER TIME
The vacation season for bankers is almost over, but memories linger on in snapshots. Above, left, a fine string of fish caught this
summer by F. E. Boyd, president o f the First National Bank, Colfax, Iowa, near Lake Andes, South Dakota. Below, left, A. E.
Welle, cashier o f the Avon, Minnesota, State Bank, his wife and two children, feeding a "w ild goat,” near Coeur D ’Alene, Idaho,
snapped on their western trip this year which extended to Seattle, then down to Tia Juana, Mexico and home through the Mojave
desert. Mr. Welle says, however, " i t is a mounted g oa t’ s head.” Right, E. L. Gookin, cashier, Lucas Co. National Bank, Chariton,
Iowa, and wife, with a muskie they caught at Shingobee Lake, near Akely, Minnesota.
Northwestern Banker
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Federal Reserve Bank of St. Louis
October 1929
19
PUTTING THEM UP—AND
By R O S C O E M A C Y
A RE FU L investigation discloses a
great deal of uncertainty in the
mind o f the average banker as to
the proper attitude to assume upon the
sudden appearance in the bank o f a ban
dit, or a group o f bandits. It is certainly
true that one cannot be too careful in mat
ters o f this kind; the business reputation
o f a lifetime may stand or fall accordingly
as the banker comports himself in such
an emergency. Unfortunately, there is
nothing in the etiquette books to serve as
a guide, and the situation is one in which
we must write our own rules.
C
It is possible to live down the most
egregious social blunder, but the banker
who, while furnishing impromptu enter
tainment for a holdup gang, commits an
error o f etiquette, is likely to find himself
immediately incapicitated for living it (or
anything else) down. And so, entirely
aside from the fact that these unexpected
occurrences are apt to upset the day’s rou
tine to some extent, and leave some extra
work for the janitor, there is a more seri
ous side to consider.
Probably the safest primary assump
tion in these cases is expressed by para
phrasing the department store a d : “ The
bandit is always right.” I f he insists that
you have some bonds in the safe or vault,
you’d better produce some for him— even
though they are only fidelity bonds. When
he says he can perform his work better
with you and your associates lined up fac
ing the wall, or lying on the bank floor, it
is best to accept his judgment in the mat
ter, however strong the inclination to
argue the question out with him. Do your
best, in all cases, to place him at his ease.
Pick Out a Soft Spot
H IS quaint propensity o f the stickup men for stretching bankers and
sub-bankers on the floor with their faces
down is becoming more and more notice
able from day to day. I suppose the idea
is that if you are placed in that position,
you will not know they are robbing your
bank until it is too late. The procedure
may be illogical— but what can we do
about it? The best plan, then, is to do as
you are told; possibly they will let you
spread some newspapers under you, if you
are wearing the nobby new fall suit— and
feAV bankers possess new suits.
T
Are you prepared even for the first re
quest that wi 11 come to you when the ban
dits appear: the suggestion that you “ stick
’em up ?” Had you thought o f the possi
bility that you might rip out a seam, in
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Federal Reserve Bank of St. Louis
your good-humored haste to comply with
the request? Imagine your discomfiture
if that should happen to you, in the pres
ence o f a bandit whom you had never seen
before in your life! Why, you couldn’t
ever look him in the face again !
The garment workers do not seem to
have made any provision for a contingency
such as this, so I have had my wife per
form some simple alterations in my bank
ing costume. A ll that is required is two
or three gussets, or accordion pleats, un
der each a rm ; these will give the necessary
freedom for the most urgent sticking-up.
In my own case, I must admit that the
good woman is not likely ever to take a
first prize for either plain or fancy sewing
at the world’s fair, and her first attempt
at the installation o f this device was not
exactly satisfactory. A s nearly as I could
tell, she had simply installed the gussets in
the AVrong spots, and on my Avay to the
bank the first morning, I Avas stopped re
peatedly to ansAver inquiries as to “ why
Avas I Avalking that Avav?” or “ was the
rheumatism bothering me again?” When
I learned, on my arrival at the bank, that
I couldn’t even raise my arms to unlock
the door, I saAA*' at once that something Avas
Avrong, and Avith a borroAved needle and
thread, I easily corrected the trouble, as I
usually do in cases of this sort. The ease
o f mind AA7hich noAV comes to me with the
thought that I am ready to enter a contest
Avith any banker in this section, and stick
’em up with the speediest o f them, has been
A\rell worth the time and effort I spent on
these feAV gussets, if that is Avhat they are.
For Absolute Privacy
NO TH ER essential step is to have
your vault curtained off into tAVO
compartments. A banker occupies a po
sition o f responsibility before the public,
and he cannot be too observant o f the
amenities and conventions of society. It
should therefore be understood by the
bank force that, in case a hold-up gang
insists on locking everybody in the vault,
one o f these compartments shall be for the
female help, and the other for the men.
Otherwise, there is no telling what people
wou'd say, when they learned that you had
all been locked up together in that dark
A7ault, They might even accuse you of
having engineered the hold-up yourself!
A
O f course, it is possible to go too fa r in
your preparations fo r entertaining ban
dits. Personally, I have ahvays been suspicious, fo r example, o f all devices having
to do Avith the releasing o f deadly gases
in case o f burglary. I am inclined to think
it Avould only be a corroboration o f gen
eral public opinion concerning myself,
when I accidentally released the gas dur
ing banking hours, and asphyxiated all
our employees. People Avould only say,
“ I told you so.”
W e had an em ploye once Avho worked
out a neat scheme involving a trap-door
in the floor, Avhich could be released by
pressure o f a button, when the bandit Avas
in the p rop er position above it, and the
scoundrel would immediately find himself
doAvn in the basement with the mice run
ning all over him. The button releasing
(Turn to page 102, please)
Northwestern Banker
October 1929
20
The simplest legal questions are sometimes the hardest to answer and
the ones that appear most difficult are often the easiest of solution.
In
the article below the Legal Editor makes quick work of some of the
twisters” that frequently stump the country banker.
CAN YOU ANSWER
T h ese L e g a l Q u e s t io n s ?
HE forwarding- bank and the insol
lected it from the X bank, and paid the
By the Legcd Editor
vent collecting bank figure in a re
proceeds to B.
cent decision o f the Iowa Supreme
On Wednesday A informed the X bank
Court reported in 212 N. W . 124, where
that he had lost the certificate, and de
stock to Z— which fact is not disputed—
the evidence showed that an Illinois bank
manded his cash.
X remained, notwithstanding such trans
sent a draft to an Iowa bank fo r collec
“ Pay him and sue the Y bank,” the X
tion, the drawee gave the Iowa bank a fer and as between the receiver and him
bank’s attorney advised, and the court up
self, subject to the individual liability im
cheek on his account, to cover the draft,
held his opinion.
posed
by the law,” said the United States
but his account was overdrawn at the time
“ The X bánk had the right to rely on
Supreme
Court
in
ruling
against
X.
and remained in that unsatisfactory state
the Y bank’s identification o f the person
until the Iowa bank closed its doors three
to whom it paid the money,” the court
The Convenient Minor
days later.
said.
H AD bought stock in a national
Consequently, the check was never paid,
The Post-Dated Check
bank from B. “ Put it in my son
or even charged to the drawee’s account
Henry’s name,” A ordered, the transfer
and the Illinois bank claimed that it was
F A gives B a post-dated check, the
was made, the bank became insolvent, and
a preferred creditor fo r the amount o f the
date arrives, chances to be a Friday,
check.
the receiver “ went after” A.
and B presents the check, and gets his
In ruling that there was no preferred
money, no question o f law, ethics or mor
“ Henry’s the stockholder— take the matclaim, the Supreme Court c f
als can arise, and if every
Iowa said:
day were a week day, this
T H E P O ST D A TE D C H E C K
“ It is too clear fo r argu
little item would not be
ment that the insolvent bank
penned.
" I f a postdated check falls on a Sunday or on a legal holi
never recognized any money
Suppose, however, that
in payment o f the sight draft
day, presentment for payment cannot be made until the
the date o f the check falls
and that no money belonging
on a Sunday, and B is “ at
day following. Presentment on fh e preceding day is irreg
to the interventor ever came
a standstill” as to whether
ular and the bank is not bound to pay on that day,” says
into the hands o f the re
he should present the cheek
a standard authority on this point.
ceiver. That this is essential
on Saturday or Monday.
to the establishment o f a
“ I f a post-dated check
ter up with him,” A suggested.
preference on the theory o f a trust is too
falls on a Sunday or on a legal holiday,
well settled to require citation o f authori
presentment fo r payment cannot be made
“ H e’s under 21 years o f age, and we’re
ties. Conceding that the Illinois bank
until the day following. Presentment on
going to assess you,” the receiver main
was entitled to impress a trust upon what
tained.
the preceding day is irregular, and the
ever was received by the Iowa bank in
bank is not bound to pay on that day,”
“ An infant cannot become the pur
payment o f the sight draft, all it received
says a standard authority on this point.
chaser and transferee o f shares so as to
was a worthless check.”
On Saturday A gave B a check on a
relieve the transferror o f liability, even
although the transfer to the infant be reg Missouri bank, and at midnight on Sun
The Man of Straw”
istered,” said the Federal courts in rul day B handed the check to the cashier o f
H AD bought 10 shares o f national
the bank on which it wras drawn.
bank stock from Y, and paid fo r it, ing in the receiver’s favor.
“ Put it to the credit o f my account the
but, before the stock was actually trans
A Question of Identification
first thing in the morning,” B ordered.
ferred, X learned that the bank was in dire
N M ONDAY the X bank issued a
As soon as the bank opened the next
financial straits and channels.
$1,000 deposit certificate to A, who, morning A stopped payment of the check,
“ Z isn’t worth a plugged copper— in
to the knowldege of the bank, could
and B sued the bank on the ground that
fact lie’s known as the town ‘deadhead.’
neither read nor write.
the delivery o f the check to the cashier
W hy not have the stock transferred to him
On Tuesday, B presented the certificate
under these circumstances was in law an
and thereby evade the usual stockholder’s
to the Y bank, stated that he was A, and
acceptance o f the check by the bank.
liability— ” the tempter suggested.
asked fo r the cash.
“ The drawer may countermand pay
“ Suits me,” Z agreed, the stock was reg
istered in his name, the bank went on the
“ Y ou’ll have to endorse it,” the cashier ment at any time before payment is actu
ally made or a written acceptance given
told him.
rocks— and the receiver tried to hold X.
by the drawee,” said the Missouri courts
“ The bank having been, in fact, insol
“ I can’t write,” B averred, made “ his
vent at the time o f the transfer o f the mark” on the certificate, the Y bank col in deciding in the bank’s favor.
T
A
I
X
O
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Federal Reserve Bank of St. Louis
October 1929
21
Gov. W. J. Bulow congratulates Alan Bogue of Beresford on having the
champion 4-H club baby beef at the South Dakota State Fair at Huron
Farms and Farmin’
N THE state, district
and county fairs all
over the country the
boys and girls’ club
work has come to oc
cupy a position of great
import a n c e.
A few
years ago the fairs were
putting in premiums for
club shows in order to help out club work
which they considered a worthy enter
prise.
Now the club show's attract more people
to the fairs than any other feature that
they can offer. It’s almost a case of the
sideshow becoming bigger than the “ main
tent.”
The possibilities o f club work are almost
unlimited. This is true as regards the
showing o f livestock and other forms of
club work at shows and fairs, as well as
to the possibilities o f the younger genera
tion on the farms o f the middle west work
ing out improved methods o f agriculture
and discovering a new love fo r the farm
that comes only with tasks well and profit
ably done.
I
M ANY OF THE COUNTY fairs have
passed into oblivion and many others are
slated for the scraplieap. High overhead
spells the death sentence fo r many of
them.
In their place is coming the county club
show for boys and girls’ livestock demon
stration teams, the county club achieve
ment show and with some o f these is being
combined the farm bureau and extension
project achievement day fo r farm women.
The fact remains that any fair or show
must be founded on solid ground with
education and wholesome amusement as
prime requisites.
M IN N ESO TA F A R M E R S are waging
war on noxious weeds. Andrew Boss, vice
director o f the Minnesota Agricultural
Experiment Station, suggests that fall
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Federal Reserve Bank of St. Louis
By C. A . C R A IG
Farm Editor
plowing, followed by constant working of
the ground until the soil is frozen will be
helpful in control of Canadian thistles,
sow thistles and quack grass.
DR. M. A. JULL, chief poultry husbandryman with the United States De
partment o f Agriculture, was the speaker
at the recent state convention of the Iowa
Poultry Improvement Association.
Iowa is making a strenuous effort to im
prove the quality o f the poultry produced
and marketed. This state has the record
fo r producing the greatest volume of poul
try and eggs o f any in the United States.
During the months o f September and
October a series of meetings are being
held throughout the state. The federal
and state departments o f agriculture, the
county farm bureaus, the extension serv
ice and produce dealers and producers
are cooperating in discussing ways and
means o f improving quality.
Sanitary means o f production are being
urged and this is the principal means of
combatting avian tuberculosis which is
causing economic loss in both poultry and
hogs.
SOME CON TROVERSY E X I S T S
over whether or not it is necessary to
tramp silage. Farmers who filled their
silos last year without tramping differ
somewhat on their statements o f results.
I f a silo is to be filled without tramping
it is probably necessary to keep in mind
that best results are ordinarily obtained
when the silo is filled slowly and when
plenty of moisture is available either in the
green corn or in water
added if the corn stover
is dry.
THE CORN CROP
in the intensive portion
of the corn belt prom
ises to be better than in
most parts o f the coun
try. Missouri, o f course, has a poor pros
pect as has southern Illinois and western
Nebraska. Most of Iowa, northern Illi
nois, southern Minnesota and Wisconsin,
eastern Nebraska and southeastern South
Dakota generally have a good outlook.
Hot, dry weather in August caused a revi
sion downward in crop estimates but the
boost in price made up fo r this in most in
stances. Favorable weather during the
month o f September has caused the corn
to mature quite satisfactorily and there is
every prospect of good quality.
THE ANNUAL W A R N IN G to select
seed corn early has received a new angle
the last year or two.
Germinating qualities are o f paramount
consideration, of course, hut another in
ducement to pick seed corn early is to in
sure maturity before frost. Still another
is the fact that diseased seed is causing
considerable difficulty in producing weak
stalks even in cases in which the corn does
germinate. Specialists say that early ma
turing ears selected early will tend to do
away with much o f this danger. Quick
drying o f seed corn under artificial heat
is also said to help prevent disease dam
age.
IN C H EROK EE COUNTY in north
western Iowa the twenty-second annual
plowing match was held not long ago. It
is the only affair o f its kind in Iowa and
one o f the few in the middle west.
Tractor plowing has been added within
the last few years and both horses and
motorized power competition feature the
(Turn to page 103, please)
Northwestern Banker
October 1929
22
W h en the Banker's W ife
CO UNTRY
SA LE
By L Y D A C O L L IN S
“ The Banker’s Wife”
Dear H elen:— You probably have never
heard o f a “ Country Sale,” have you, but
it is like the “ cob house,” an institution
individual o f the great agricultural coun
try in the Middle West and an important
item in the business of a country banker.
The commission derived from these sales
is all profit and it amounts to considerable
if you get the business. Not only that but
it is a fine place to mingle with the farmers
and do a little missionary work for the
bank.
The boys usually clerk these sales but
sometimes a request comes fo r the “ skip
per” and they make quite a fuss over
him. He eats in the house with the auc
tioneer and any special guests the man of
the house cares to invite. The meal usu
ally takes the form o f a banquet. The
crowd is served a lunch o f sandwiches,
pickles, cake and hot coffee outside some
where.
This is scheduled fo r eleventhirty, with the sale starting at one
o’clock.
to
The country sale is not only a fine
place to mingle with the farmers
L Y D A COLLINS
but also to do a little missionary
work for the bank
One day when one o f our pioneer
friends was having a sale, we were both
invited. The dinner was fine, as they were
good cooks at this house. A fter the sale
got started the women folks went out to
see what was doing.
Pretty soon from out the granery they
brought an old walnut day-bed, so ancient
it had slats and pulled out in front so it
could be used as a double bed with a straw
tick.
A shout o f laughter went up as the auc
tioneer held it up fo r the crowd to see.
Then I could hear in an undertone,
“ Where’s Mrs. Collins, where’s Mrs. Col
of the year.
That auctioneer, uncon
sciously, knew the psyciology o f the croAvd
and if he could get them livened up and
bidding early in the game the sale would
go well. It did.
The fu n o f it was, Helen,
Avanted that day-bed. It Avas a
and is one o f the loveliest pieces
ture I have in m y house since it
refinished.
I really
real find
o f fu rn i
has been
Before we left that afternoon, the man
who held the sale told me I did not have
to take the old thing as they just did it
fo r a joke. He was simply flabbergasted
Great News Source
when I told him I really wanted it and
HO lias these sales?
soon saw that the joke Avas
The farmers who are
on him.
closing out, retiring to live
These sales aren’t all fun,
BANKERS K N O W THIS
in town or perhaps a renter
though.
who is moving and needs the
Sometimes the snowstorms
“ These country sales are not all fun , however.
money to pay off his obliga
rage, the wind Iio a v I s and
Sometimes the snowstorms rage and the wind howls
tions at the bank. Every
the temperature drops be
thing is sold from household
and the temperature drops below zero. The clerk's
low zero.
The clerk’s fin
goods to live stock. Every
gers get so cold he can
fingers get so cold he can scarcely hold the pencil in his
body goes not only to buy
scarcely hold the pencil in
fingers to write down the names of the purchasers
but for the fun o f it and a
his fingers to Avrite doAvn the
man can pick up more news
names o f the purchasers and
and the prices paid!'’
at one o f these sales than a
the prices paid.
woman can over the back
The bank has a complete
fence in a week. Friends o f the lady of
outfit of sheep lined coat, leather vest,
lins?” and I knew it was a put up job
the house help cook and mingle with the and they expected me to bid.
lined overshoes and mittens for these
crowd or play cards after the noon work
The auctioneer, o f course, had a long
stormy winter days.
is over.
The auctioneer tries to get on the sunny
tale to tell o f its having been sent out here
side o f a barn or shed so the croAvd won’t
I go too when a special invitation is from some beautiful eastern home with
sent me and bid along with the rest o f the some barrels o f “ relief” when the grass get too cold and leave.
crowd if there is something offered that I
It sometimes happens that the woman
hoppers ate up everything, even to the
want. I ’ve picked up some fine antiques shingles on the roof, o f its comfortable isn’t a good cook or a neat housekeeper
and then the boys get their dinners at
in this way, much to the amusement o f the ness, the many, many restful naps old
home before they start.
Grandpappy Burns had had on its soft
crowd.
There is ahvays some “ hanger-on” that
I got a reputation fo r buying “ old slats and downy straw tick, and a lot more
p op s up beside the car just as it is about
junk” at our Saturday afternoon sales wise cracks to get the crowd good natured.
to start and Avants to go Avith the boys so
He then asked fo r bids. Immediately
which are held through the summer back
he will be invited to eat in the house with
some one shouted “ Five cents!” I called
o f the bank. People bring anything they
them.
Alm ost every country bank has
want to sell and get rid o f and it is auc “ ten” and away we Avent, with the crowd
one o f these pests. W e have ours.
roaring with laughter.
tioned off. The boys knew I liked old
One day the boys had one o f those “ notW hen the bid reached a dollar the auc
walnut furniture and put me wise when
so-good” places to clerk.
tioneer knocked it down to me and the fun
some old pieces were to be sold. It got to
The felloAV pushed himself in even Avhen
was over, but the crowd Avas good natured
be quite a joke that the banker’s wife
the car Avas filled. W hen they g ot out
and in a buying mood and they told me
liked that old stuff instead o f the nice,
(T u rn to page 104, please)
afterwards this Avas one o f the best sales
shiny, new oak.
W
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
October 1929
23
know them and who can therefore, in all
LTHOUGH many o f the larger
Describing a time and labor sav
fairness, be held responsible for the cor
banks o f the country are well organ
ing method for handling a daily
rect handling o f this important duty.
ized with special departments,
routine duty that is for most
Next, it lias demonstrated certain time,
plenty o f well equipped filing space and
banks an expensive and trouble
labor and space saving economies. It has
carefully trained clerks to handle the
some one
eliminated the need for check filing
problem, the job o f taking care o f cus
cabinets set up in the bookkeeping depart
tomers’ checks, after charging and can
ment or in the vaults. The convenience
celing them, is still a big one in most finan
o f having the trays in which the checks
cial institutions.
By J O S E P H B E L L IS
are filed right in the desk drawers enables
In too many banks, it seems, this job of
Guardian State Bank, St. Paul,
each bookkeeper to keep up with this job
filing away the cancelled checks of cus
Minnesota
currently in a minimum amount o f time
tomers as they are paid and getting them
spent at it each day. The plan has, in
ready to hand back, with statements o f
accounts, at the end o f each month is con way o f a combined sorting, posting and many cases, eliminated from the bank pay
filing desk, has been designed by office roll the salaries formerly paid to clerks
sidered ‘‘nobody’s business,” meaning that
equipment engineers and such furniture who were retained to take care o f check
a number of different clerical people have
has been installed in the bookkeeping filing.
a hand in it.
But, this plan, like all other innova
This practice is very liable to lead to rooms o f a great many banks.
The drawers of such desks are fitted tions, presented its drawbacks in certain
errors in filing and consequently in match
ing up the statement with canceled
with removable trays in which checks can cases and left room for improvement.
Having experienced some difficulties in
be filed, behind guides bearing the names
vouchers. Checks really belonging to John
Jones will too easily get mixed up with o f accounts, the idea being that each book handling this entire check filing and state
ment issuing problem in our bank for a
those o f John Jonas. Unless a definite keeper takes care o f this job o f filing away
the checks pertaining to the accounts he long time, especially in the years during
responsibility for handling the filing work
and after the great war, when efficient
handles, doing it at a certain time each
is placed upon an individual, or group o f
day after posting and proving has been clerical help was at a premium, we set
clerks, who can be made to appreciate the
about to study ways and means to improve
finished.
importance o f carefulness, considerable
our situation.
trouble is apt to result from errors of
This plan has proved very successful.
W e had in mind, as an ideal in attain
First, it has placed the filing obligation
this sort.
Another reason for placing this work
and duty where it belongs— on the book ment, some sort o f a method whereby the
keepers, who know the signatures on actual filing of checks could be accom
in the hands o f those clerks who are best
plished simultaneously with the posting of
qualified to conduct it lies in the desire
checks better than any other clerks could
the payments to the in
o f the bank to give
dividual ledgers and
prompt and efficient
the placing of these
service to its cus
checks in a sort of
tomers in the return of
receptacle that would
their paid checks. I f
insure against any pos
the work is properly
sibility o f their being
organized to give this
ever mixed up with
service as it should be
those of accounts to
given, the bank will
which they did not
benefit greatly as well
pertain.
as gain the approval
This
trend
of
o f its patrons, because
thought led us to the
this material will be
necessity o f perfecting
regularly and quickly
a device o f an entirely
transferred from its
new type than any
files into the hands of
thing on the market at
its customers where it
that time. The sort of
belongs.
device required,
of
Within the past few
course, was something
years the idea of plac
in the way o f a combi
ing the responsibility
nation o f a statement
fo r filing customers’
posting tray and a
checks upon the book
check filing cabinet.
keepers who handle the
There seemed to be
posting o f individual
“ no such animal” then
ledgers and statements
existant.
has become a very
With the assistance
popular one.
of filing equipment
Equipment for bank
(Turn to next page)
bookkeepers, in the
Revolving the lower tray into posting position
A
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Federal Reserve Bank of St. Louis
Northwestern Banker
October 1929
24
engineers, over months o f experimental
activity, a device was constructed which
we called a “ self-filing*, posting tray.” A
photograph o f the installation o f this
equipment made in our bookkeeping de
partment wTill be seen here. This installa
tion is in effect today exactly as it was
made over three years ago and it has
proved immensely practical and highly
satisfactory in every way.
This device, now being manufactured
and marketed under the trade name o f
“ Check-o-matic” bank bookkeeping equip
ment, consists o f a double tray unit, one
tray being suspended above another on a
revolving frame so that the bottom tray
can be brought quickly and easily up to
the position o f the top one when checks
have been posted to statements in the
latter and filed away.
The two trays are necessary, o f course,
in order to provide sufficient space or
capacity for the statement sheets and the
checks o f the total number o f accounts
handled by a single bookkeeper in a bank
o f average commercial activity.
The
double unit will actually provide space for
housing from eight hundred to a thousand
accounts with from twenty thousand to
twenty-five thousand checks fo r the thirty
day period.
The trays are so constructed that a
recessed bottom holds the checks in three
partitioned compartments running from
front to back of the tray length. An in
dividual name guide is set up in the unit
fo r each account, the name being typed
on a label that is inserted into the celluloid
tab o f the guide. This label can be re
moved from the guide when the account
closes, making the guide usable fo r another
account and these guides really take the
place o f the individual name guides that
would otherwise be used in a separate
check filing cabinet.
The tabs on these guides are arranged
in four positions across the width o f the
tray, making a perfectly “ visible” setup
o f the statement system and thus mate
rially increasing the speed o f posting and
reference.
In front o f each guide is placed the
statement sheet for the account o f the
name appearing in its label. This guide
and the one just in front o f it form, by
means of long tab projections cut on
their bottom edge, which extend down into
the recessed tray bottom, a three compart
ment, closed pocket or filing space, in
which the checks of that account are stored
away.
The actual routine operation o f book
keeping with this equipment is carried on
as follows :
A fter checks have been posted to the
individual ledgers and before the run is
to be made to the statement system they
are, o f course, put through the canceling
machine. This cancellation of checks prior
to the reconciliation o f the ledger and
statement runs is necessary to the operaNorthwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
October 1929
tion o f the system because checks are to
be filed “ automatically” as statements are
posted. It offers a big advantage, too, as
a safeguard against fraudulent operation
on dormant account because, at no time
after the proof o f posting, are un-cancelled or un-filed checks lying around any
where in the department.
When the statement clerk is ready to
post checks and deposits, the “ Check-omatic” device is brought into position near
the bookkeeping machine and the work
begins. There is no change whatever in
operation o f the bookkeeping routine with
this device over what has always been
standard practice in the bank. The only
difference is that the statement clerk, as
she replaces the statement sheet in the
tray, after posting the charges to the ac-
count, files away the checks she has
charged, at the same time. The sheet is
removed from the machine with the right
hand, the checks are placed in their com
partment, on end, with the left hand and
the operator passes on the next account
affected.
When the bookkeeper has gone entirely
through the accounts in the top tray she
grasps a lever releasing the lock that holds
it in top position and revolves the lower
tray up into posting position. Then she
proceeds as before to complete her posting
run to her section o f the books. When
she is through posting, all her checks are
filed away, exactly where they belong,
without any extra time or labor being ex
pended. They remain there, without pos(Turn to page 28, please)
HE real estate bond house o f Robert
S. Strauss & Company recently held
a unique sales convention on board
the steamship North American, o f the
Chicago, Duluth and Georgian Bay Tran
sit Company.
The Quota Club, which represents the
star salesmen o f the organization, wTas
called into Chicago for a Quota Club sales
convention, which wTas opened at the Hotel
Sherman with a banquet luncheon, after
which the entire party embarked on the
steamship North American.
The following day the party toured
Mackinac Island in horse-drawn carriages.
This unique island resort which has been
very popular for years, has never allowed
automobiles to be used on the island and
everything has been done to retain its nat
ural beauty. From Mackinac Is]and the
boat carried them through beautiful Geor
gian Bay to Parry Sound, a quaint Cana
dian town located in the 30,000 islands
district, which is one of the most beautiful
and charming spots in North America.
The next day the boat stopped at De
troit for a short tour in sight-seeing busses
o f the automobile city and Windsor. The
same evening the boat made a stop on its
way to Buffalo at Cleveland, arriving in
Buffalo early the following morning,
wdiere specially chartered busses took the
entire party fo r a tour of Buffalo and
Niagara Falls, taking in all the points of
interest in this internationally known re
sort and beauty spot. Leaving Buffalo
that night, they arrived in Detroit Sunday
about noon, where the party was trans
ferred to private chartered Pullmans on
the Michigan Central Railroad to bring
them back to the W indy City.
While on board the North American,
several interesting meetings were held in
the ballroom and were presided over by
Carroll S. Felter, director o f organization,
and Orville B. Price, director o f sales.
T
No. 943
Des Moines, Iowa
December 13,1965
Congress Starts Hearings
On Fed Rate Action Todag
“ I think
the
Congress
should move immediately in
the Second Session of the
89th Congress to put an end to
Fed Chairman William McChesney Martin’ s power to thumb his
nose at the President, the Con
gress and the American people.”
This is the recent state
ment made by Wright Patman
(D. T exas), chairman of the
House Banking and Currency
Committee, who has announced
that an investigation will start
today into the Federal Reserve
Board’ s discount-rate rise. The
hearings will be held by the
Joint Congressional Economic
Committee.
The Fed, directly defying
the Johnson Administration,
raised the discount rate to 4%
percent from 4 percent to head
off inflation following requests
by New York and Chicago Fed
Districts. At the same time, it
said member commercial banks
may pay as much as 5% percent
annual interest on certificates
of deposit and other time de
deposits maturing in 30 days or
more. Previously, the limit was
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
4% percent on those of 9 0 days
or more and 4 percent on those
of 30 to 90 days’ maturity. The
interest rate ceiling on savings
accounts at commercial banks
was left unchanged at 4 per
cent.
Other
Fed
districts,
meeting separately were ex
pected to follow suit.
The Federal Deposit In
surance Corporation approved
the Fed ruling and raised to
5% per cent the maximum rate
which state banks may pay on
time deposits but urged the
banks to use “ utmost caution”
in putting higher rates into
effect.
The Fed vote to raise the
discount rate was by only a 4
to 3 margin. C. Canby Balderston was one of the four voting
in favor of the increase, and
his term expires in January.
President Johnson will have an
opportunity to name a successor
whose thinking is more in line
with thatof the Administration.
Most of the larger banks in
the major financial centers have
increased their minimum lending
rate from 4% to 5 per cent. Ma
LINCOLN
jor banks in New York, Boston,
Los Angeles, Philadelphia and
Chicago have raised their quoted
rates on certificates of deposit.
Some newly posted rates went
as high as 4.75 per cent, but
all were under the new ceiling.
Concern is being expressed
by a number of well-known
country bankers and by super
visory
authorities
that the
sharply increased maximum in
terest rate might tempt some
banks to offer a much higher
interest return for such depos
its, thus tending to drain CD
money from other banks. This
could be a serious threat to
banks who have acquired “ new
money” during the past year or
so and increased their loan
volume accordingly.
FDIC
Chairman Randall
stated that “ banks in moneymarket centers may feel under
pressure to move to a somewhat
higher rate structure implied
by the boost in the interestrate ceilings , but smaller banks
should be under no compulsion
to follow suit, because of the
different circumstances under
which they operate.” It is true
that rural banks are not neces
sarily affected by the prime
rate, but they could be affected
(Continued back page)
..First in Securities
Management
FIRST NATIONAL BANK & TRUST COM PANY OF LINCOLN
12th &c N S tre e t • L IN C O L N , N E B R A S K A • Member: F .D .I.C .
IOWA NEWS
AD EL: H .B. Jacobson, presi
dent of the Dallas County State
Bank, has announced the move
of
Vice
President
Leland
Goodrich from the Redfield Of
fice to Adel. Lee Struble, a s
sistant cashier, will manage
the Redfield O ffice.
cultural representative for the
Home State Bank, recently re
ceived his master’ s degree in
agricultural education.
OSAGE: Miss Margaret Hendry,
receptionist and secretary at
the Home Trust and Savings
Bank, has completed 25 years
there.
AD E L: Mrs. Orville Wagner,
an employee of the Brenton
State Bank for nine years, has
been elected assistant cashier.
RED OAK: Lewis Lowe, 35,
assistant vice president at the
Houghton State Bank, has been
named president-elect of the
local Chamber of Commerce.
COUNCIL BLU FFS: The First
National Bank is constructing
a new drive-in facility near
Manawa, according to Presi
dent Dale Ball.
RIVERSIDE:
Approximately
1,000 persons attended the re
cent open house at the new
Peoples
Trust and Savings
Bank building.
DECORAH:
Robert
Duden,
vice president and cashier at
Security Bank and Trust Com
pany, has been elected the
president of the local Chamber
of Commerce.
NEBRASKA NEWS
INDIANOLA: Don R ussell has
been elected assistant cashier
at Peoples Trust and Savings
Bank.
INWOOD:
H .A.
Henrickson,
director of the Inwood State
Bank, has been named Citi
zen of the Year by the local
Kiwanis Club.
IOWA C ITY : The First Nation
al Bank plans a drive-in office
at the Towncrest Shopping
Center.
JEFFERSON: Jim Meyer, agri-
WORLD’S
FINEST
complete line of
financial equipment from
one reliable source.
C E D AR R API DS, IOWA 52406
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Federal Reserve Bank of St. Louis
LINCOLN: Robert Crosby, one
of condemned killer Duane Earl
Pope’ s court-appointed attor
neys, has reported that a mo
tion for a new trial would be
filed. Pope was convicted and
sentenced to die in the elec
tric chair for killing three per
sons in the Big Springs bank
robbery which took place six
months ago. His conviction
and sentencing came Friday,
December 3.
OAK: Thieves broke into the
Scroggins and Company Bank
recently, looting safe deposit
boxes and making off with at
least $200 in cash.
It marked the third time the
bank had been broken into
since its founding in 1898, ac
cording to J .L . Scroggin, bank
president.
OMAHA: The Omaha Chamber
of Commerce has hon aed Harry
A. Stanley, the cab driver who
was instrumental in assisting
police in the apprehension of
Gregory A. White, convicted
robber of the First National
Bank of Omaha. F . Phillips
Giltner, executive vice pres
ident of the bank, presented
Mr. and Mrs. Stanley with a
check at a special luncheon.
OMAHA:
The South Omaha
Stockyards National Bank has
also presented an award to cab
driver Stanley for his heroic
action. Mr. Stanley has two
children, a daughter and a son
who is an Army Chaplain serv
ing in Germany.
OMAHA: From the more than
35,000 official entry blanks
deposited during First National
Bank of Omaha’ s Fabulous
Football Fanfare, the lucky
first prize winner was Myron
J. Bena, an employee of the
Union Pacific Railroad, who
won a trip to the Orange Bowl
for himself and his wife on
New Year’ s Day.
ST. EDWARD: The Bank of St.
Edward has increased its cap
ital to $50,000.
WAUSA: The Commercial State
Bank recently celebrated its
40th anniversary. N .T . Tiemann, president of the bank
since 1957, is a candidate for
governor of Nebraska.
MONTANA NEWS
HAVRE: Richard Bohn has
been
elected
an assistant
cashier at Citizens Bank of
Montana.
HELENA: William B. Andrews
has been elected president of
Union Bank and Trust Com
pany, succeeding John Carls cn, who was elected chair
man of the board.
MINNESOTA NEWS
ADA: The board of directors
of the Ada National Bank was
reorganized recently and L .J.
Peterson was named chairman
of the board and president of
the bank, succeeding the late
A .A . Habedank.
CLOQUET: The First National
Bank has increased its surplus
account to $600,000 with the
transfer of $100,000 from the
undivided profits account.
GREEN
ISLE:
Mrs.
Lydia
Masemann, assistant cashier
at Citizens State Bank, died
recently. She had been employ
ed by the bank for 25 years.
HIBBING:
Richard
A.
Maki,
formerly assistant cashier at
The First National Bank, will
join The Batavian National
Bank, LaCrosse, Wisconsin,
December 27, as assistant
vicepresident.
KENYON: Duane Schaper and
David
Redfield
have
been
elected assistant cashiers at
Security State Bank.
OAKLAND: Robert J. Sapp
has been named vice presi
dent and assistant manager at
Crocker-Citizens National Bank
main office here.
PRESTON: Wils A. Garratt,
president of the Farnrors and
Merchants
State Bank, has
been appointed a member of
the Country Bank Operations
Committee of the American
Bankers Association.
MINNEAPOLIS:
The
First
National Bank headed a group
which recently purchased a
$2.5 million bond issue of the
City of Rapid City, South Dak
ota, the bank has announced.
MINNEAPOLIS:
Directors of
First Hennepin State
Bank
have voted to increase the sur
plus account by $50,000 to
$ 200, 000.
MINNEAPOLIS:
Calvin
A.
Merriman has been appointed
sales manager of J.M. Dain
& Company.
MINNEAPOLIS: Several meet
ings have been scheduled this
week by the Federal Reserve
Bank of Minneapolis for the
purpose of explaining its func
tional cost analysis program.
Conferences slated for the up
coming week include the fol
lowing: Tuesday-Holiday Inn,
Eau Claire, Wisconsin; Wednesday-Kahler Hotel, Roches
ter; Thursday-Inn Towne Motel,
Mankato and Monday(December 20)-Federal Reserve Bank,
Minneapolis.
SOUTH DAKOTA NEWS
BOWDLE: Open house will be
held by Bowdle State Bank on
December 19, in its new build
ing. Party for correspondents
and bankers will be December
17, according to officials of
the bank.
HOWARD:
Funeral
services
were held Thursday for Arthur
S. Thompson, president of the
Miner County Bank.
NORTH DAKOTA NEWS
HILLSBORO: Leonard Beal,
president of Northwestern State
Bank, has retired from office.
He will continue as a director
of the bank.
COLORADO NEWS
DENVER: Encroachment of fed
eral authorities into the tradi
tional domain of the individual
states has ‘ almost, if not en
tirely,
caused
the
nation’s
dual banking system to bee erne
a thing of the pa st,’ the presi
dent of the Colorado Bankers
Association has charged.
C .B .A . President Paul L.
Rice, president and chief ex
ecutive officer of two Loveland
banks, was backed by Colo
rado Bank Commissioner Harry
Bloom who blames U.S. Comp
troller of the Currency James
J. Saxon for preventing the
opening of a new Colorado
Springs bank, which the Colo
rado Bank Board approved ap
proximately 17 months ago.
DENVER:
The
election
of
John J. Vance to the board of
directors of the Bank of Den
ver has been announced by
President Walter C. Emery.
DENVER:
Western
National
Bank last week celebrated its
second anniversary in business
and its first anniversary in its
new quarters.
DENVER: Merriam B. Berger,
chairman of the board of the
Colorado National Bank, was
last week awarded a silver
tray, commemorating his 45
years of service to the bank.
GLENWOOD SPRINGS: Gene
Curtis has been appointed a s
sistant vice president of Bank
of Glenwood.
LAMAR: The resignation of
Gordon Burton as president
and director of the Valley
State Bank was announced re
cently. J. Elmer Facer, until
recently a vice president of
Denver U.S. National Bank,
was appointed to succeed Mr.
Burton.
WYOMING NEWS
AFTON:
Star Valley
State
Bank has initiated a contest
built around its newly-install
ed time and temperature sign
whereby contestants will be
requested to estimate when
the sign will first record a
reading of 25 degrees below
zero.
JACKSON:
F.
Buchenroth,
chairman and president of the
Jackson State Bank, died on
Friday, December 3.
LARAMIE: Ground has been
broken for the new American
National Bank.
The vast majority
of Iowa Banks
BANK WANTED
Preferably a bank with assets of $5
million or more in Southern Minnesota
or Northern Iowa.
Our client, an experienced Minnesota
banker, and associates are prepared
to invest up to $1 million for con
trolling stock in a suitable bank.
All correspondence and negotiations
will be strictly confidential. Submit
current statement, number of shares
offered and price net to you.
do business with
Central National Bank
& Trust Co.
BANKERS SERVICE
A L P E N A : Officials report a re
cent unsuccessful attempt to
break into the Alpena American
State Bank.
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Federal Reserve Bank of St. Louis
Corporation
Serving Banks & Bankers Since 1948
1301 Register and Tribune Building
Telephone (515)244-3113
Des Moines, Iowa 50309
5th and Locust Des Moines
Member F.D.I.C.
You can be sure your customers’
Sioux City collection items
will have our careful attention.
bonds,
Send us those drafts, stocks, bonds,
notes, coupons and all non-cash items
for fast, personal service.
SECURITY NATIONAL BANK
6TH AND PIERCE STREETS
•
SIOUX CITY, IOWA
LATE NEWS
ST. PAU L, MINN.: Gerald P.
Nichols has been advanced
from assistant cashier to a s
sistant vice president at The
First National Bank of St.
Paul. James P. Peiffer, Don
ald L. Swanson and David M.
Hyduke have been elected a s
sistant cashiers.
•
MEMBER F.D.I.C.
M. Mader has been appointed
an agent in the bank’ s New
York agency.
NEW YORK: Election of Sid
ney Lanier and Frank B. Smeal
as senior vice presidents of
Morgan Guaranty Trust Com
pany has been announced by
Thomas S. Gates, chairman of
the board. Both were formerly
vice presidents.
FED ACTION...
(Continued)
if savings start to flow to
money-market centers due to
the difference paid on time
money.
Headquarters for the Amer
ican Bankers Association is
sued a statement congratulating
the Federal Reserve Governors
for their action, apparently
without actually polling its
members. Headquarters for the
Independent Bankers were in
clined to withhold a statement,
pending talks with members.
NATIONAL NEWS
MONTREAL:
Richard
J.P.
Pierce has been appointed Far
East representative, resident
in Tokyo, Japan, for the Bank
of Montreal. David B. Jewell
and Derek Whittle bee one vice
presidents of the Bank of Montreal, California, and William
NEW YORK: George W. Cole
man, economist for the Mercan
tile Trust Company, St. Louis,
will join the staff of The Amer
ican Bankers Association on
January 1, as ec momie advis
er, according to Dr. Charis E.
Walker, executive vice presi
dent of the association.
NEW YORK: John W. Bergford
has been apppinted senior vice
president of Chase Manhattan
Bank.
NEW YORK: William N. Ashbey has been named assistant
vice president, investment ad
visory, at Bankers Trust Com
pany. F. Malcolm Graff, Jr.,
has been named trust officer,
personal trust.
NEW YORK: The Metropolitan
Life Insurance Company has
advanced Eugene A. Schmidt
from vice president to senior
vice president in charge of
We're here to help
you get what you want
IOWA-DES MOINES
NATIONAL BANK
G eorge H arnagel
M em ber F e d e r a l D e p o s i t In s u r a n c e C o r p o r a tio n
stocks
and
banking.
PITTSBURGH: It has been an
nounced by A.M. Pivirotto, Sr.,
president of Continental Com
mercial Corporation, and Fran
cis J. Conway, chairman of
Thorp
Finance
Corporation,
Thorp,
Wisconsin,
that an
agreement has been arrived
at subject to the required ap
proval by stockholders of both
companies for the merger of
Continental into Thorp.
SAN FRANCISCO: Clint Matrisciano has been promoted to
assistant vice president in
Bank of America’ s East Bay
area administration program.
ST. JOSEPH, MO.: Roger A.
Hegarty has been promoted
from cashier to vice president
and assistant to the president
at the First National Bank.
Jack F. Killackey will assume
the duties and title of cashier
in addition to that of vice
president. Benton O’ Neal has
been advanced from assistant
vice president to vice presi
dent in the correspondent de
partment. Don F. Barnes was
promoted to assistant vice
president.
WANT ADS
Rates 25 cents per word per
insertion. Minimum: 12 words.
NORTHWESTERN BANKER
306 15th St., Des Moines, Iowa
FOR SALE
Cummins M odel 300 E lectric P er
forator, recon d ition ed . Box LSD,
NORTHWESTERN BANKER, 306
15th St., D es M oines, Iowa 50309.
POSITION WANTED
Y ou n g , ambitious bank office r wants
p osition in city over 25,000. E x c e l
lent work record, and varied loan
e x p e rie n ce . Send rep lies to B ox
M PY, NORTHWESTERN BANKER
306 Fifteenth Street, D es M oines,
Iowa 50309.
POSITION WANTED
D esire a situation as farm rep in a
country bank with opportunity to
learn the banking b u sin e ss. Iowa
State grad in agriculture with farm
management ex p erien ce. Box FFM,
NORTHWESTERN BANKER 306 15th St., Des M oines, Iowa 50309.
N o.943 Northwestern Banker is published five times monthly by the Northwestern Banker Company, 306 Fifteenth Street, Des
Moines, Iowa 50309. Subscription 50^: per copy, $4 per year. Second c la ss postage paid at Des Moines, Iowa. Address all mail
subscriptions, change of address, Form 3579, manuscripts, mail items to above address.
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Federal Reserve Bank of St. Louis
25
savings committee, after mature
deliberation, decided that “ The com
petition facing the hanks in the sav
ings business and how it can be met” was
o f vital importance to our business, and
deserved the most careful consideration.
The committee prepared a questionnaire
o f eleven questions soliciting information
both on competition affecting savings
banks and plans successful to meet it.
In the questionnaire were also included
nine questions relating to building and
loan associations, which in many sections
o f the country are in direct competition
with banks fo r savings deposits.
Through the office o f the deputy man
ager of the division, fifteen hundred ques
tionnaires “ To Disclose the Nature and
Extent o f Competition with Savings in
Banks and the Methods necessary to meet
it” were sent to savings bank members
throughout the country. The committee
regrets that only 274 replies were re
ceived, but as these came from 46 states
the answers may be regarded as a cross
section o f nation-wide thought on the sub
ject.
Answers to the various questions have
been tabulated under subheadings to each
question and in this report are given both
by number and percentage. No attempt
has been made by the committee to rec
ommend any specific course o f action, but
it does feel the need o f continued and per
sistent effort upon the part o f savings
banks to bring before their respective com
munities the advantages and scope o f
their services.
It will be noted from the summary o f
the questionanire that 76 per cent o f the
most serious competition mentioned by the
banks was due in their opinion to the de
sire fo r larger income. It will also be
noted that there was considerable apathy
regarding the present situation o f savings
business, since 26 per cent o f those an
swering had no suggestion on how suc
cessfully to meet competition.
There are a number o f prime factors
which have adversely affected savings de
posits in banks, either by actually reduc
ing volume or restricting increases.
Among these may be noted:
1.
The higher plane o f living, particu
larly noticeable as the period o f continued
prosperity lengthens.
2.
Increasing volume o f life insurance
written annually.
3.
The many ramifications o f install
ment selling and budget buying.
4.
Home buying and investment of
funds in mortgages, bonds and stocks fo r
investment yield.
5.
Speculation with the aim of profit
from the increase in value.
6. The elimination, through restricted
(Turn to page 64, please)
T
he
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Federal Reserve Bank of St. Louis
Recapitulation of Replies to Questionnaire
To disclose the nature and extent of com petition
with savings in banks and the m ethods necessary
to m eet it. T otal num ber of replies 274.
I.
What do you regard as the most serious competition in the future development of savings business?
a. Building and loan associations........................................... 129
or 47%
b. Installment financing ............................................................. 28
or 10%
c. Stock speculation .......................................................................27
or 10%
d. Higher rate of return from investment..............
54
or 10%
e. Miscellaneous ............................................................................
7 or 3%
f. No answer .................................................................................... 10
or 4%
g. Commercial bank competition and trust companies.. 19
or 7%
II. How can banks successfully meet this competition?
a. Educational advertising ....................................................... 64
or 23%
b. Legislation re: building and loan associations........... 54
or 20%
c. Selling bonds ............
25
or
9%
d. Advising on investment m atters........................................ 14
or
5%
e. Making savings deposits more readily available......... 9 or
3%
f. Miscellaneous .............................................................................. 30
or 11%
g. No suggestion ............
71
or 26%
h. Meet competition of building and loan associations.
7 or
3%
(Some New England banks suggest better service and higher rate of
interest.)
III. What is your plan or suggestion by which banks can teach the advan
tages of a cash reserve?
a. General advertising and publicity....................................... 88 or 32%
b. Education ..................................................................................... 66 or 24%
c. National campaign on th rift................................................
5 or
2%
d. Talks with individual depositors......................................... 13 or
5%
e. Miscellaneous .............................................................................. 9 or
3%
f. No suggestions .......................................................................... 93 or 34%
IV. Have you any special plans for increasing savings deposits?
44 or 16%
a. Newspaper advertising and publicity................
b. Direct mail advertising ......................................................... 18 or
7%
c. Employee contests .................................................................... 3 or
1%
d. Special savings clubs ............................................................. 24 or
9%
e. Miscellaneous .............................................................................. 15 or
5%
f. No plans ......................................................
156 or 57%
g. Solicitors ....................................................................................... 14 or
5%
(A few suggested giving better service and higher rate of interest.)
V. Should interest be paid on savings accounts which are carried at a loss?
a. Yes ................................................................................................. 69 or 25%
b. No .................................................................................................... 192 or 70%
c. Doubtful ....................................................................................... 13 or
5%
VI. Should the interest rate be higher on the more profitable savings ac
counts?
a. Yes ................................................................................................. 39 or 14%
b. No .................................................................................................... 206 or 75%
c. Doubtful ....................................................................................... 29 or 11%
VII. What is the per cent of taxes paid by your bank to your total deposits?
a. To 0.1% ......................................................................................... 72 or 26%
b. 0.1% to 1.0% ............................................................................... 113 or 41%
5%
c. 1.0% to 3.0% .............................................................................. 14 or
d. 3.0% to 5.0% ..............................................................................
7 or
3%
e. Over 5.0% .....................................................................................
7 or
3%
f. Do not know ................................................................................. 13 or
4%
g. No answer .................................................................................. 48 or 18%
VIII. What is the per centof taxes paid in your state by building and loan
associations to their total deposits?
a. To .01% ......................................................................................... 13 or
5%
b. Small amount ............................................................................ 38 or 14%
c. None ............................................................................................... 63 or 23%
d. Do not know ...................................
93 or 34%
e. No answer ................................................................................... 67 or 24%
IX. What per cent of your savings withdrawals are going into the stock
market?
a. None ............................................................................................... 21 or
8%
b. Small amount ............................................................................. 100 or 37%
c. Less than 1 % ...............................................................................
4 or
1%
d. 1% to 10% .................................................................................. 30 or 11%
e. 10% to 25% ................................................................................ 17 or
6%
f. 25% to 50% .................................................................................. 13 or
4%
g. 50% to 8 0 % ................................................................................
5 or
2%
h. Large percentage ...................................................................... 21 or
8%
i. Do not know .............................................................................. 41 or 15%
j. No answer ................................................................................... 22 or
8%
X. In your opinion are the savings withdrawn used for speculation or
investment?
a. Speculation (mainly) ............................................................. 30 or 11%
b. Investment (mainly) .............................................................. 151 or 55%
c. Both ............................................................................................... 60 or 22%
d. No answer .................................................................................. 24 or
9%
e. Do not know .................................................................................
9 or
3%
XI. If for speculation, what is your suggestion as to how such money may be
diverted into investment instead of speculation?
a. Educational advertising ....................................................... 45 or 16%
b. Sale of securities ...................................................................... 19 or
7%
c. Personal solicitation and advice......................................... 21 or
8%
d. No suggestion ...........................................................................189 or 69%
(Some had no suggestion but thought people would learn by expe
rience not to speculate.)
Northwestern Banker
October 1929
26
CLYDE E. BRENTON
LOUIS C. KURTZ
ANDREW J. HUGLIN
lowa-Bes Moines National Joins
Northwest Bancorporation
NE of the most important develop
ments in the banking history o f
the state of Iowa was recorded last
month in the announcement that the IowaDes Moines National Bank and Trust
Company has affiliated with the Northwest
Bancorporation o f Minneapolis, which
now has combined resources o f more than
$360,000,000.
The Iowa-Des Moines National Bank
and Trust Company is a merger o f the
Iowa National Bank and the Des Moines
National Bank, both old and well estab
lished institutions whose combined re
sources are in excess o f $42,000,000. This
bank becomes the fourth largest bank of
all o f the thirty-eight banks and trust
companies that are now members o f the
Northwest Bancorporation.
Clyde E. Brenton, president o f the
Iowa-Des Moines National Bank and
Trust Company becomes vice president o f
the Northwest Bancorporation, and the
following Des Moines men become direc
tors: Howard J. Clark, attorney; E. C.
Finkbine, president o f the Finkbine Lum
ber Company; Fred Bohen, president of
the Meredith Publishing Company; Gard
ner Cowles, president o f the Des Moines
Register and Tribune ; J. H. Cownie, pres
ident o f J. H. Cownie Company; W - H.
O
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
October 1929
Brenton, vice president o f the Iowa-Des
Moines National Bank and Trust Com
pany; L. C. Kurtz, chairman o f the board,
Iowa-Des Moines National Bank and
Trust Company; Albert J. Robertson,
vice president o f the Iowa-Des Moines
National Bank and Trust Company; F. C.
Hubbell, president, F. M. Hubbell Son &
Co., and Oliver Thompson, trustee, the
Thompson Trust.
The Iowa National Bank was estab
lished in 1875, and the Des Moines Na
tional Bank in 1881.
Expansion Program
LYDE BRENTON, in announcing the
bank’s affiliation with the Northwest
Bancorporation, said it is a step in a
program o f expansion that should bring
great financial advantages to Des Moines
and the entire state of Iowa. He said it
will bring to this city the united strength
and support and facilities o f a great bank
C
ing group headed by outstanding financial
leaders o f the northwest.
He pointed out that Des Moines is the
largest city in Iowa, which is America’s
greatest food producing state. Des Moines
is likewise the geographical, industrial
and financial center of the state, and has a
population in excess o f 160,000. It is one
o f the largest insurance centers in the
west and is one o f the six largest publish
ing centers o f the United States.
Its 400 factories turn out $100,000,000
worth o f products annually with a payroll
o f around $75,000,000. The state pro
duces 5,000,000 tons of coal per year, and
its agricultural income is in excess of
$700,000,000. Iowa’s manufactured prod
ucts are slightly in excess o f this figure.
L. C. Kurtz, chairman o f the board of
the Iowa-Des Moines National Bank and
Trust Company, says that through affilia
tion with the Nortlnvest Bancorporation,
each institution will continue to operate as
a unit under the management o f local
officers and directors in the interests o f its
own community, but that all are bound
together by interlocking ownership. He
says this will permit each stockholder to
share in the profits o f each entire group.
W . H. Brenton, vice president, em
phasizes the greater service that the bank
will be able to render by pooling Avith
other leading banks o f the northwest their
resources and man power.
President Brenton has announced that
there will be no change in the personnel
o f officers and directors o f the Iowa-Des
Moines National Bank and Trust Company
through their affiliation with the bank
corporation. Officers will be as follow s:
Chairman o f the board, Louis C. K urtz;
president, Clyde E. Brenton; executive
vice president, W . H. Brenton; Depart
ment o f Commercial Banking vice presi
dents, Andrew J. Huglin, Geo. E. Pear
sall ; Assistant vice presidents, A. J.
Warnke, and OAven P. McDermott; De
partment o f Banks and Banking \Tice pres
idents, Herbert L. Horton, J. K. Capps,
Clarence A. D iehl; Assistant vice presi
dent, E. W . Jones; Assistant cashier, 0.
M. Garret ; Department o f Bank Admin
istration cashier, Geo. D. Thompson; A s
sistant vice president, Harry G. Wilson,
Richard H. Collins; Assistant cashiers,
James Burson, and Thos. J. Hynes; Busi
ness Development Department manager,
assistant \uce president, W inifred W .
S cott; Assistant vice president, R. L.
Chase, J r .; Credit Department, manager
and assistant vice president, Edwin F.
Buckley; auditor, F. C. Davis; General
counsel, Clyde H. Doolittle; Trust Com
pany Division, A’ice president, Albert J.
Robertson; Bond Department, manager,
Leland J. Andereck; Assistant vice presi
dent, Sherman W . Fowler; Assistant
cashier, Arthur H. Keyes; Trust Depart
ment, trust officer, James F. H art; Assist
ant trust officers, Victor H. Pulis, W . F.
H ow ell; Mortgage Loan Department,
Manager, A. L. Kreidler.
ALBERT J. ROBERTSON
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Federal Reserve Bank of St. Louis
W. H. BRENTON
Three Iowa Members
H REE prominent IoAVa banks are
noAV members of the Northwest Bancorporation,
including the Iowa-Des
Moines National Bank and Trust Com
pany, the Live Stock National Bank o f
Sioux City, which affiliated Avith it last
month, and the First National Bank o f
Mason City, which has been a member for
several months.
T
There are thirty-five leading banks and
HERBERT HORTON
trust companies that are nocv members of
the Nortlrwest Bancorporation, and in
clude the folloAving banks: NorthAvestern
National Bank and affiliated banks, Min
neapolis; Minnesota Loan & Trust Co.,
Minneapolis; The Minnesota Company,
Minneapolis; Iowa-Des Moines National
Bank & Trust Company, Des Moines;
First and American National Bank, Du
luth; First National Duluth Company,
Duluth; United States
National Bank,
Omaha; United States Trust Company,
Omaha; Stock Yards
National Bank,
Omaha; South Omaha
Savings Bank,
Omaha ; First National Bank, Mason City,
loAva; First, National Bank & Trust Com
pany, Fargo, North Dakota; National
Bank of La Crosse, La Crosse, W isconsin;
Security National Bank, Sioux Falls,
South Dakota; First National Bank,
Aberdeen, South Dakota; First National
Bank, Deadw'ood, South Dakota; Security
National Bank & Trust Company, Fari
bault M inn.; Fergus Falls National Bank,
Fergus Falls, Minnesota; National Bank
o f Huron, Huron, South Dakota; James
River National Bank, JamestoAvn, North
Dakota; First National Bank, Lead, South
Dakota; First National Bank, Minot,
North Dakota; First National Bank,
Moorhead, Minnesota; Security State
Bank, OAvatonna, Minnesota; First Na
tional Bank, Rapid City, South Dakota;
Live Stock National Bank, Sioux City,
IoAva; Stock Yards National Bank, South
St. P aul; Commercial National Bank,
Sturgis, South Dakota; Citizens National
Bank, Wahpeton, North Dakota; Citi
zens National Bank, Watertown, South
Dakota; First National Bank, WatertoAvn,
South Dakota.
J. R, CAPPS
Northwestern Banker
October 1929
28
How We Solved the Check Filing
Problem
(Continued from page 24)
sibility of becoming mixed with those of
other accounts, until statement-making
time at the end o f the month.
W e have found in our more than three
years’ experience 'with this equipment that
the work of making up customers’ state
ments with cancelled vouchers for delivery
at the end of each month has been won
derfully simplified and speeded up over
what it was when the old system of filing
The Next President
of the
Investment Bankers Association
HE Investment Bankers Association of America has a habit
of choosing big men for big jobs.
Hence it is not to be
wondered at that Trowbridge Callaway, of New Tork city,
is slated
as
the president
elect,
at
the
Association’s
eighteenth annual convention to be held in Quebec, October 12— 18.
j y j R* C A L L A W A Y , will succeed Rollin A. W ilbur, of Cleveland,
as president of the I. B. A.
He was born in Chicago, 111., De
cember 2, 1882, the son of the late Elizabeth J. Ecclestone and Sam
uel Rodger Callaway former president of the New York Central
Railroad Company and organizer and first president of the Am eri
can Locomotive Company. He was graduated from St. Paul’s
School, Concord, N. H ., in 1901, and entered Harvard University,
from which he received the degree of Bachelor of Arts in 1905. On
leaving college he entered the employ of Harvey Fisk & Sons, invest
ment bankers, New York City, and continued with them until 1910
when, with Stuyvesant Fish and Samuel T. Callaway, he formed
Check-O-Matic when closed
the investment banking firm of Callaway, Fish & Co., New York
City, in which firm he is a partner.
jY J
R. C A L L A W A Y is a director of several companies a trustee of
the Harvey School, Hawthorne, N. Y ., treasurer of the Alumni
Association of St. Paul’s School and a member of the Harvard 1905
Class 25th Reunion Fund Committee.
copal Church.
He is a member of the Epis
In 1917 he enlisted as a volunteer in the U. S. Army
Signal Corps as a pilot in the air service, and was honorably dis
charged in 1919.
j y j R . C A L L A W A Y has served on various committees of the New
York Group of the Investment Bankers Association of America
and in 1927 was elected to the Board of Governors of the Associa
Close-up of the Check-O-Matic in operation
tion.
Since 1927 he has been chairman of the sub-Committee on
Distribution of the Association’s business Problems Committee.
checks was followed. The very fact that
all the checks belonging to each account
are right with the statement has eliminated
all the trouble and much o f the time form
erly spent on this end o f the month work.
Furthermore, we have found that we
can answer customers’ inquiries much more
quickly, in fact, immediately, about checks
that have come through and been paid,
because the checks are always to be found
right with the statement sheets as soon as
they have been charged.
There is no
hunting around for them in unfiled
bundles o f checks or in cabinet drawers.
W e use the individual name guides in
many special ways, writing on these
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
October 1929
Among bis clubs are Harvard Club, the Institute of 1770, Racquet
& Tennis, Riding, Rockaway Hunting, Polo, Beverly Yacht, and the
A. D. Club of Cambridge.
Mr. Callaway married Elsie Macintosh
Kellogg October 20, 1908. They have three sons and one daughter.
Their home is at 34 East 68th Street, New York City.
guides memoranda o f any important
nature abom handling special business re
lating to any account.
“ Cheek-o-matic” equipment can be
adapted to either a sitting or standing
position in the bookkeeping department.
It takes up very little more space than
the ordinary statement tray or binder
with its base or rack, and especially does
it offer space saving advantages in the
bank when you consider that check filing
cabinets can be dispensed with.
29
Midland National Joins Northwest
Bancorporation
HE Midland National Bank and
Trust Company, Minneapolis, lias
affiliated with the Northwest Bancor
poration o f Minneapolis. On last report
to the comptroller the Midland had $1,0 0 0 ,0 0 0 capital and surplus, undivided
profits
and
reserves
approximately
$700,000, deposits $20,306,388, and re
sources $24,580,196. The Northwest Bancorporation which embraces Northwestern
National Bank, Minnesota Loan and Trust
Company, and five other institutions in
Minneapolis now has affiliated in this Min
neapolis group, including Midland, de
posits o f $128,283,614 and combined
resources $146,620,785. There are now
thirty-four banks and* trust companies
located in Minnesota, North Dakota, South
Dakota, Iowa, Wisconsin and Nebraska
that are in the Northwest Bancorporation
group and their combined resources are
$344,750,453.
Charles B. Mills, President, Midland
National Bank and Trust Company, and
E. W . Decker, president, Northwest Bancorporation, jointly announced September
24th, the affiliation which will be accom
plished through exchange o f Bancorpora
tion stock. On the Chicago stock exchange
and the Minneapolis-St. Paul stock ex
change, Bancorporation recently has been
traded in around $98, while Midland stock
with a par value of $ 2 0 has been traded
in Minneapolis-St. Paul at $90 to $96.
Theodore Wold, who was the first gov
ernor o f the Ninth District Federal Re
serve Bank in Minneapolis, when it began
operating in 1914, and who now is senior
vice president o f the Northwestern Na-
T
CHARLES B. M ILLS
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
D. Davis, assistant cashier; J. Kenneth
Cornelyson, assistant cashier; Linden L.
D. Stark, assistant trust officer; Fred W .
Conrad, assistant cashier; Lawrence O.
Olson, assistant cashier; Edmund J.
Wagenhals, assistant cashier, and Frank
W . Peterson, auditor. Midland National
Bank and Trust Company has a strong
and representative directorate, made up
as follow s:
Frank W . Bowman, vice president, S.
H. Bowman Lumber Company; Frank
G. Brooberg, broker; Bernard M. Bros,
treasurer, Wm. Bros Boiler & Mfg. Com
pany; Aaron Carlson, manufacturer; H.
S. Gregg, president, Gregg Manufactur
ing Company; Oscar D. Hauschild, secre
A n Iowa Native
tary, Retail Lumbermen’s Ins. Ass’n ;
H A R L E S B. M ILLS, wrho succeeded
James T. Hazard, James T. Hazard Com
H.
R. Lyon as president o f Midland
pany, Insurance, general agents; Charles
National Bank and Trust Company in Au
J. Hedwall, insurance; G. L. Heegaard,
gust, 1919, began his banking career with
president, Mandan Mercantile Company;
the Bank of Sioux Rapids, Iowa, in 1885,
W . C. Helm, vice president, Russell Miller
afterward becoming a member o f Moe,
Milling Company; Fred L. McClellan,
Hulett & Mills, bankers at Sioux Rapids.
president, McClellan Paper Company;
Later he was executive officer o f the
John R. Marfield, president, Marfield
Peoples Trust and Savings Bank, Clinton,
Grain Company; Edgar L. Mattson, vice
Iowa. In addition to his present connec
president, Midland National Bank &
tion with the Midland, he is president o f
Trust Company; Robert L. Meech, vice
the State Bank of Laurens, Iowa, and
president, Mandan Mercantile Company ;
First National Bank, Sioux Rapids, Iowa,
Charles B. Mills, president, Midland Na
vice president, First National Bank, Ramtional Bank & Trust Company; Walton
brandt, Iowa, and vice president, Citizens
R. Murray, vice president, Midland Na
State Bank, Osseo, Minnesota.
tional Bank & Trust Company; E. H.
Norblom, president, Landers, Morrison,
Edgar L. Mattson, first vice president
Christenson Company; Hal C. Paris,
and trust officer o f the Midland, is a na
tive o f Minnesota, and has been in the manager, The Paris Factory; A. M. Rob
ertson, vice president, Minneapolis Street
banking business in Minneapolis since
1888. He is past president o f the Min Railway C o.; Maurice Schumacher, build(Turn to page 1 0 0 , please)
nesota Bankers’ Association, a former
tional Bank and vice president o f the
Nortlrvvest Bancorporation, was president
from 1910 to 1914 o f the Midland National
Bank and Trust Company, which at that
time, was named “ Scandinavian-American
National Bank.”
The Midland National Bank and Trust
Company is located in the Security build
ing at Fourth street and Second Avenue
South, and is close to the City Hall and
Courthouse, the Minneapolis Chamber of
Commerce, the grain trade and milling
company and railroad offices. There will
be no change as to name, location or per
sonnel.
C
member o f the executive council o f the
American Bankers’ Association, former
president o f the National Bank Division
o f the American Bankers’ Association, and
former treasurer o f the Minnesota A gri
cultural Society. Prior to 1912, Mr. Matt
son was an officer o f the Northwestern
National Bank, and the affiliation o f both
the Northwestern National and Midland
with Northwest Bancorporation has some
thing o f the sentimental fo r Mr. Mattson
as it has fo r Mr. Wold.
Walton R. Murray, vice president, after
years o f bank experience, starting as a
messenger, came to the Midland in 1915
as assistant cashier. He has been active
in civic affairs in Minneapolis fo r years.
Other officers of the Midland a re: Victor
E. Hanson, vice president; Trygve Oas,
vice president and assistant trust officer;
George G. Struthers, vice president;
Arnulf Ueland, credit manager; Elmer V.
Bloomquist, secretary and assistant trust
officer; Cecil L. Keith, cashier; Harry
EDGAR L. MATTSON
Northwestern Banker
October 1929
30
afety and Profit in the Bank’
Investment Account
HE committee on investments, sav
ings bank division, American Bank
ers Association, was directed to
study the methods employed by the
smaller banks in the management o f their
investments in securities, and to suggest
means whereby the banks might increase
their earnings from this source.
It is assumed that the first desire of a
bank is to lend locally all it safely can on
satisfactory terms, thus promoting the
business and growth of its own community
which in turn promotes the bank’s wel
fare. Another primary consideration is
that the banker should never overlook
keeping his institution liquid. The banker
differs from the individual investor in that
he must have liquidity, or the ability to
convert his assets into cash when required.
The individual may never have to sell or
convert his securities, but a banker cannot
make this assumption, for his deposits are
at the command o f his depositors at any
time. In the case of savings accounts
there is, o f course, the time limit but even
this is restricted. The banker, however,
does know that a certain amount o f his
savings deposits will always remain un
touched, and fo r this reason his institution
can safely buy mortgages and other not
easily converted assets which a commer
cial banker cannot safely hold. Even in
the investment in securities by a purely
commercial bank, it is not a bad rule
never to buy any stock or bonds which do
not enjoy a ready market at all times.
A fairly safe indicator o f the investment
situation is the interest rate for call loans
on the New York Stock Exchange. When
the rate has been 6 per cent or more for
a long period, it is a clear indication that
there is a credit strain and commercial
banks would do well to have their money
loaned and not invested. I f the local
demand does not absorb the funds o f a
bank, it would be well to put them on call
in New York— in bankers’ acceptances
and in prime short time paper. This use
o f funds has the added advantage o f be
ing impersonal. The bank does not come
in personal contact with the borrower,
and therefore escapes the importunities o f
its clients and the— at sometimes— embar
rassment in pressing a client for repay
ment.
It is in times when money is cheap and
interest rates are low that the most careful attention should be given to the in
vestment o f surplus funds. The tempta
tion is very strong to bny something which
pays a little more than the current rate.
A belief that money rates will go still
lower often hastens purchases with the ex
T
Northwestern Banker
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Federal Reserve Bank of St. Louis
October 1929
pectation that long term bonds will ap
preciate in price. While the judicious
purchase o f long term securities early in
the period o f lowering interest rates is
wise and profitable, times of low interest
rates are danger periods fo r the inexperi
enced banker who lacks wise investment
counsel. It is at such times, when it is
relatively easy fo r the issuing house to
2.
No definite investment program.
3. Lack o f knowledge o f securities
owned and o f the types o f securities which
should be purchased.
4. Trend o f interest rates on securities.
5. Failure to review and appraise all
holdings at regular perodical intervals.
6 . Exchanges.
7. Keeping funds employed.
It was found that a majority of the
smaller banks purchase securities only
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after approval o f the board of directors.
Report of Special Committee on
This method makes it impossible for the
banks to take advantage o f offerings of
Investments, Savings Bank Divi
the so-called “ fast issues,” by which is
sion, to Executive Committee of
meant new issues which are very attrac
the Division at American Bankers
tive and are quickly snapped up by large
Association C o n v e n t i o n , San
buyers, often being all sold by ten o’clock
Francisco, 9:30 A . M., September
on the morning they are offered and imme
diately commanding a premium above the
30, 1929.
issue price. Banks which can not give an
Ill!lllllll][|]|lill][lllllll[[l[|l![!ll]|l!ll[!lllllll[||||||||||||[|||||[||||lil|[|||l|[||||]||llllllllllillllllll!llillll]||||l!il!illlll
immediate answer are not called by tele
phone on issues o f this type. It is be
sell bonds, that the quality o f bonds de lieved the smaller banks should follow the
larger ones and authorize at least one
teriorates.
officer to purchase or sell securities with
New Issues
out waiting fo r approval of the board.
T IS well to remember that new issues
His principal duty should be the pur
o f bonds usually have a considerable
chase of securities and their follow-np.
profit fo r the issuing houses, and their This would make it necessary for him to
study securities, markets, general condi
market variations may be wide until they
are well distributed and locked in the tions, and trends, and keep close contact
strong boxes o f the investors. This is not
with the bank’s large city correspondent.
so much the case with bonds which have
In some cases several small bankers
been outstanding fo r a long time and have united in the employment o f an in
which have become thoroughly seasoned.
dividual expert in security values, to su
It is not a bad rule fo r an inexperienced
pervise their investment accounts, thus
banker without good investment advice to
securing at reasonable cost wisdom and
confine the investment in bonds fo r his experience which no one banker individu
institution to those listed on the New York
ally could afford.
Stock Exchange, although this in and of
B u y W hen Wanted
itself is not a sufficient recommendation.
T IS believed the smaller banks would
Another general observation to be noted
do well to follow the large financial
is the natural indisposition of banks to
institutions and adopt the policy of buy
take profits or losses unless some other
ing securities when wanted rather than
immediate use fo r the funds can be found.
having securities sold to them. Safety and
Most inexperienced investors are slow to
fair price should be purchased instead of
stop their losses when the prices o f their
securities go down. It is also true that interest rate and what the salesman has to
they miss many opportunities to increase
sell. As a rule the salesman’s best efforts
are put forth to sell the most profitable
their profits by selling when everything
looks bright. It has been said that in
issue on his list, irrespective o f the bank’s
requirements. Frequently, if he is suffi
banking, “ It is not so much Avhat you
ciently persistent, he succeeds. This im
make as what you don’t lose that counts.”
plies no criticism o f the salesman’s integ
This applies particularly to the invest
rity and effort. In many cases the bank
ment account.
would fare better to buy a lower yield and
In the course o f its study the committee
have greater security and marketability.
found several points in the management
A record should be kept o f security is
o f the average bank investment account
which should be corrected. The principal
suing houses and o f the issues put out by
them in order to know how these issues
ones are:
1.
No matured policy or method in pur have fared marketwise when selling syn
dicates are dissolved, and, whether the
chasing securities.
I
I
31
T he W H IT E P H IL L IP S COM PANY, Inc.
IN V E STM EN T BANKERS
D A V E N P O R T , IO W A
C H IC A G O , IL L IN O IS
O cto b er Investm ents
W E O W N AND OFFER, SUBJECT TO PRIOR SA L E :
Adams County, la., Primary Road____ Opt.
5-1-1935
4 .8 5 %
22.000 4 % %
Jackson County, la., Primary Road___ Opt.
5-1-1934
4 .7 5 %
10.000 5 % %
Kossuth County, la., Dr. Dist. No. 166__
11-1-1930
5 .2 5 %
17.000 4 % %
Lee County, la., Primary Road_______ Opt.
5-1-1934
4 .7 5 %
$10,000 5 %
6.000 4 1/4 %
Sioux City, la., Sewer Constr----------------
1933-37
4 .6 5 %
4 .8 5 %
21.000 5 %
Wayne County, la., Primary Road____ Opt.
12.000 5 %
Worth County, la., Primary Road______ Opt.
5-1-1934
4 .8 5 %
14.000 4 % %
Bloom Twp., 111., Sch. Dist. No. 206__
6-9-1947
4 .7 5 %
33.000 4 % %
Burnham, 111., General Corporate______
1935-1947
4 .7 5 %
20.000 4 x/ 2%
East Moline, 111., School______________
1932-1947
4 .7 0 %
29.000 6 %
Mill Shoals Twp., White County, 111.,
Road__________________________________
1930-1934
5 .2 5 %
37.000 4 % %
Moline, Illinois, School________________
1934-1935
4 .7 0 %
45.000 5 %
Veterans Park Dist., Cook County, 111.,
Parks_________________________________
1939-1947
4 .9 0 %
1930-1959
5 .3 0 %
100,000
5%
Lavaca County, Texas, Road Dist No. 1
5-1-1935
13.000 SV2%
El Campo, Texas, School______________
1945-1951
5 .2 5 %
7.000 5 / 4 %
Brevard, No. Caro., Street Impr.______
1930-1936
5 .2 5 %
16.000 6 %
Sherrard Power System, 1st Mtg--------
6-1-1939
10.000 5 % %
Maysville Public Serv. Corp., 1st Mtg._
4-1-1942
6.00%
6 .00 %
10.000 6 %
Inland Utilities, Inc., Conv. Deb----------
6-1-1934
6 .3 4 %
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Federal Reserve Bank of St. Louis
Complete descriptive circulars on the above offerings gladly
furnished upon request
TH E IN VESTM EN T
Ranking House O f S ervice
Northwestern Banker
October 1929
32
house makes a market fo r its issues until
they are well distributed and seasoned.
At the same time due allowance must be
given to changes in interest rates and de
pressing influences. No house, no matter
how strong or how wise, can guarantee fu
ture prices on its securities.
Having established a definite purchas
ing policy, the next step is to formulate
an investment program to meet the bank’s
requirements as to security, maturity, and
liquidation. Many banks buy far more
security than is necessary, irrespective o f
income. Others buy coupon rate or price
and overlook the factor o f safety. Neither
is correct. A safe medium can be reached
and should be the aim o f all buyers. Un
less regulated by state laws, the average
bank does not need to hold too high a
percentage o f underlying, low yield rail
road and public utility bonds. A certain
amount o f this type is desirable to raise
the average quality o f the list, but not so
much as to make the average yield too
low. Do not make it a rule to buy only,
as some do, securities rated A A A , or as
others do, nothing yielding less than 6
per cent. O f the two, the former is p ref
erable, as the possibilities o f loss o f prin
cipal are very limited, but it results in a
loss o f income. The second method is en
tirely wrong. A policy of this kind will
surely bring losses if followed fo r a pe
riod o f years.
Every list should have a fair percentage
o f short term securities, maturing in from
six months to five years. In this way a
bank has a flow o f funds coming in which
On a Desk
in Every Iowa Bank
AKE the Iowa Bank Directory from the desk
of an Iowa banker, and it will be missed im
mediately! It is used daily by the executives of
Iowa banks— the men who influence the investing
public in this rich investment State— men who are
ihemselves among the State’s largest investors.
T
— an invaluable source of accurate information.
— referred to constantly.
— intense reader interest.
— 100% CIRCULATION, EVERY BANK IN
IOWA.
— Moderate advertising rates.
Write for advertising rates at once,
and assure your advertisement a prom
inent position in the Second 1929
Edition. First forms will close soon.
IOWA BANK DIRECTORY
Published by the Northwestern Banker
DES MOINES
Northwestern Banker
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Federal Reserve Bank of St. Louis
October 1929
can be counted on, also, they can be sold
without great sacrifice in time of stress.
The advantage o f this policy has been
proved to many banks during the past
eighteen months.
Liquidity should receive consideration
second only to security o f principal.
Banks which have been sold new issues
o f securities during the past three or four
years and recently found themselves faced
with the problem o f raising cash through
the sale of these issues were in many cases
forced to take losses which were far
greater than the average decline in prices,
because a large part o f their holdings had
very limited, and in some cases only what
is known as a one house market.
Great care should be taken to secure
proper diversification o f holdings. Not
over 5 per cent o f the list should be in any
one company, and the folloAving is con
sidered a good distribution according to
groups :
Governments . . . .1 0 to 20 per cent
Railroads ............. 20 to 30 per cent
Utilities ................. 20 to 30 per cent
Industrials ........... 20 to 30 per cent
Foreign ................. 10 to 15 per cent
A fter determining desirable percentages
by groups, the list should be diversified
geographically and the industrials by in
dustries. Geographical diversification is
desirable in the rails, also in utilities and
foreigns, as depressions or disasters which
may occur in one section are not apt to
affect the entire list marketwise. In the
industrial group selection should be made
from the food, chemical, steel, oil, rubber,
automobile, and other industries. Depres
sions which may affect one or more indus
tries do not necessarily affect all.
K now Your Bonds
ACK o f knowledge on the part of
bank officials of the securities pur
chased has resulted in serious losses to a
number o f banks. While it is realized
that the smaller banks cannot afford the
personnel or facilities, which the larger
banks maintain, to study securities, it is
believed a far greater knowledge o f the
securities held, or under consideration for
purchase, can be obtained by communica
tion with a correspondent financial insti
tution of size and service competent to ad
vise, or by retaining the services o f one
o f the statistical organizations. The opin
ion o f either o f these should be given
greater consideration than the recommen
dation o f the salesman or the firm offering
the securities. Bond salesmen often state
that certain banks spend far more time
investigating a request for a local loan of
$ 1 0 0 than is devoted to the purchase of
$5,000 o f bonds o f a company whose name
is entirely unknown to them. I f one wellequipped officer with *proper contacts is
responsible fo r all purchases, this condi
tion could not exist.
Another phase o f investment in bonds
(Turn to page 60, please)
L
33
Deeper and broader channels
for the ship of M odern Business
to Modern Business
The Equitable Trust Company
and
The Seaboard National Bank
announce
their consolidation as
The Equitable Trust Company
OF
NEW
HEN the mammoth ships of our generation
began to move their unprecedented cargoes,
channels had to be broadened and deepened to make
arrival and departure safe and sure. So, with the
growth in trade and industry today, tending toward
larger single units of manufacture and distribution,
the financial channels also must broaden and deepen.
The consolidation of two well-rounded banking
institutions—The Equitable Trust Company and The
Seaboard National Bank— reflects this trend. It creates
a bank large enough to satisfy the financial needs of
our great modern corporations, yet flexible enough
to meet every banking requirement of the individual.
Correspondent bankers will continue to transact
their business with the same experienced Equitable
and Seaboard officers, yet in addition they will find
in the consolidated bank a widened range of val
uable business contacts and banking facilities.
W
For greater usefulness
YO RK
T h e E q u itab le T ru st C om pan y
OF
NEW
YORK
A merger o f The Seaboard National Bank and The Equitable Trust Company
■
Total Resources in excess o f $800,000,000
M a in Office: 11 Broad Street, New Y ork
Offices o f O u t-of-T ow n Representatives: Philadelphia, Baltimore, Pittsburgh, Atlanta, Chicago, Dallas, San Francisco
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Federal Reserve Bank of St. Louis
Foreign Offices: London, Paris, M exico City
Northwestern Banker
October 1929
34
4. F or recreation, he plays the violin
and rides horseback.
Editor’s N o te:— Under the above heading, readers of the N o r t h w e s t e r n B a n k e r , are
being favored with a “ tr a v e lo g w r itte n by the publisher, Clifford DePuy, who, with
his wife, is now enjoying a three months’ tour of Europe. He will visit England,
Germany, Holland, France, Italy, Switzerland, Austria, and Czeclio Slovakia and
will describe his observations in each country.
SW ITZE RLA N D is made up o f three
distinct nationalities— German, French
and Italian. Realizing this, I was inter
ested to learn how they maintained their
neutrality during the war, and found that
it was done very cleverly in the following
manner. The German-Swiss soldiers were
assigned to guard the French border. The
French-Swiss guarded the German border,
and the Italian-Swiss guarded the Aus
trian border. As a “ Switzer” told us,
“ Believe me, our border was well guarded.”
* * *
ABOUT ON E-TH IRD o f the laborers
in Switzerland are watch makers. Over
$80,000,000 in Swiss watches are exported
annually.
Incidentally, I talked to a
prominent jeweler in Lucerne who had
three stores in Switzerland, one in New
York, and one in Los Angeles, and he said
that in three months in Los Angeles he did
a greater volume o f business than he did
in twelve months in his three stores in
Switzerland. (The Los Angeles Chamber
o f Commerce Avill probably not overlook
this paragraph.)
* * *
SP E A K IN G OF THE W A T C H IN
DU STRY, to say nothing o f the cheese
business o f Switzerland, our guide said
that their greatest industry was to bring
tourists in with money and send them
away without money, and from my own
experience I think they succeed very well.
* * *
THE OLDEST DRUG STORE in Lu
cerne has been in the same family for gen
erations. Over the door I read this sign,
“ We have medicine to cure everything but
love.”
* * *
A S I LOOKED at the Wilson Memor
ial tablet in front o f the League o f Na
tions building in Geneva, I could not help
but feel that the United States had de
serted its own child and left it to be
brought up by other nations o f the world.
Northwestern Banker
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Federal Reserve Bank of St. Louis
October 1929
Most foreigners do not understand our
attitude on this subject. I sometimes won
der if we do ourselves.
* * *
THE E FF IC IE N T A M E R I C A N
woman has competition in the Italian
peasant whom I saw’ walking along at a
rapid rate with a large loaded basket over
her head and knitting all the while.
* * *
IN STRESA, IT A L Y , one night I saw
the world’s greatest salesman. He was
selling a pearl ( ?) necklace to a crowd of
boys and girls about five to ten years of
age. The crowd had gatherd to see his
“ Punch and Judy” show. But before that
took place, he sold tickets for one lira, or
above five cents, fo r a lottery ticket en
titling the holder to one chance on the
necklace. When enough tickets had been
sold— and not before— the crude funny
show began. The night I saw it, he kept
the crowd at abeyance until 10 :30.
* * *
AT 46 Y E A R S OF AGE, Mussolini is
the most talked o f ruler in Europe. Seven
years ago with 10 0 ,0 0 0 faseiti he marched
from Naples to Rome and took charge o f
the government without bloodshed. Every
one tells you o f the wrnnder he has wrought
during his administration in operating the
railroads and industrial plants.
Some o f the interesting things I learned
about Mussolini, while in Italy, were
these:
1. Since March 11, 1926, lockouts and
strikes have been absolutely prohibited,
“ in defense o f the interests o f the nation
and the continuity o f production.”
2. Mussolini’s family lives in Mi1an and
he goes to see them two or three times a
year.
3. “ II Duce” works until two o’clock
many nights and it is much harder to see
him than it is the Pope.
5. He has abolished all secret societies
in Italy. This was done especially to
eliminate free masonry.
6 . Everything in Italy dates from the
beginning o f the fascism in 1922. Dates
are written this wray, “ Anno Y II Ere Fascista.”
* * *
A N OTH ER PROOF o f American effi
ciency was brought to my mind in Rome
where I purchased the August 24th issue
o f the Saturday Evening Post on August
23rd. I paid 8^/2 liras, or about 42 cents
for my copy, but it was worth it because,,
as I wrote Craig B. Hazlewood, his article
on the subject “ W hy the County Bank”
was in it.
# * *
BEFORE COMING TO EUROPE I
had heard much o f the beauty o f the Ital
ian lakes, but not until I was in Bellagio
did I fully appreciate them. In my diary
I have written:
“ Tonight we dined on the open terrace
o f Hotel Villa Serbelloni. Here, high up
on the mountain side, Count Alessandro
Serbelloni had his villa, and before him,
on the mountain, Pliny the Younger had
his beloved Villa tragedy.
“ But tonight, the historical background
o f the villa and the brilliance of a Roman
philosopher and writer seemed to fade
away into the deep blue haze that hung
over Lake Como and Lake Lecco.
“ Who cared about the past 1 Tonight we
were dining in the most picturesque place
I had seen in all Europe. From my high
point o f vantage two lakes far down the
hillside stretched out in opposite directions
like great sheets o f beautiful green glass
with the rugged shore line impudently
protruding itself into the picture like a
naughty boy sticking his thumb in the
jelly jar. Far away I could see faintly,
oh ever so faintly, the Italian Alps, wdiich
made the background for this wonderful
panorama.
“ Now and then, across the lakes, a slow
moving row boat glided through the water.
Here and there a fast motor launch made
white streaks o f foam as it sped on its
way. Then as the sun slipped over the
edge of the universe, and the darkness
seemed to envelope us, the moon came out,
the grand old night watchman o f the
heavens. Lights appeared in the houses
on the mountain sides, the lake steamers
seemed like toy boats brilliantly illumi
nated. Far off an auto curved in and out
35
Babson Agrees with Mellon
That Bonds Are Selling at
Bargain Prices
OGER BABSON said recently: “ Of course the real
bargains of today are in the bond field. Secretary
Mellon may have been a little early when advising people
to buy bonds last March, but be is still giving the same
advice, and it is better today than ever."
R
Bankers of foresight throughout Iowa, as well as individ
ual investors, are recognizing this opportunity to purchase
sound investments on a very favorable basis. For many
years this Iowa investment bouse has specialized in high
grade bonds of the character well suited to banks and their
conservative clients. It is our privilege to serve a large
percentage of the banks in Iowa which buy bonds.
Bankers find our offerings of consistently high quality and
our service of practical value. Inquiries, which should be
addressed to our Burlington office, receive our prompt at
tention. Write, without obligation, for our October bond
list.
W . D, f í a n n a a n d C o m p a n y
BONDS
FOR
INVESTMENT
B u r lin g t o n , Iow a
Pioneer Bank Building, Waterloo
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Federal Reserve Bank of St. Louis
The Higley Building, Cedar Rapids
The Laurel Building, Muccatine
f
Northwestern Banker
October 1929
36
up the mountain side as its lights appeared
and then disappeared around the winding
road.
“ Dinner was over, but we sat leisurely
for many hours as we viewed this Italian
masterpiece, while the chimes of Bellagio
announced to us in deep musical tones the
hour o f the night.”
Business Shows Gain
The dollar volume o f business in thirty
cities in Minnesota, western Wisconsin,
Iowa, Nebraska, the Dakotas, Montana
and Wyoming, for the six weeks ending
September 1 1 th, gained 21 per cent over
the corresponding period in 1928, and
26 per cent over 1927. Check payments
through banks in these cities (debits to
individual accounts as reported to the
reserve banks) were $2,254,543,000 com
pared with $1,866,945,000 in 1928, and
$1,785,241,000 in 1927. Duluth had 49
per cent gain, Minneapolis 40 per cent,
Mason City, Iowa, 28 per cent; Cedar
Rapids, Iowa, and Superior, Wis., 22 per
cent each ; Sioux Falls, S. D., 16 per
cent, and La Crosse, Wis., 12 per cent.
Northwest Bancorporation, in its Sep
tember monthly business summary, finds
this due mainly to earlier marketing of
grain at prices higher than 1928.
All railroads entering Minneapolis ex
cept one registered gains over August,
1928, in grain tonnage ranging from 41
and 46 per cent by the Omaha and North
ern Pacific roads to 107 per cent and 434
per cent by the Great Northern and Rock
Island. Between September 1st and
September 16th, there was a falling off,
but receipts o f all grain from August 1st
to September 15th were 48,467,080 bush
els in Minneapolis compared with 42,448,280 in 1928, and in Duluth 55,997,439
bushels compared with 29,179,413.
With reference to the congested con
dition o f Minneapolis and Duluth ter
minals which had in them at the begin
ning o f the new' crop season more oldcrop grain than ever before at a like time,
Northwest Bancorporation Review says:
“ The fact that terminal elevators have
managed to operate continuously in the
northern markets speaks volumes fo r the
cooperative efforts o f producers, elevator
companies and railroads. Tariffs o f most
o f the railroads permit grain, at a cost
o f 2 y2 cents per 100 pounds over ordinary
rates, to be temporarily ‘stored in transit’
at other intermediate country elevators
that may have available bin space, sit
uated between the source o f the shipment
and their terminal destination. This de
vice among others is being resorted to at
the present time.”
Morris Plan Bankers Meet
N o M ore “ Missing C h eck s”
at e n d -o f-m o n th
— because none w ill be U N -F I L E D or M IS -F IL E D
A N Y W H E R E in the bank at A N Y T I M E
A A / " I T H the new Shaw-Walker combined bank check file and statement
* * posting device, your bookkeepers can file the current checks charged
to your customers’ accounts at t h e s a m e t i m e the statement sheets are re
filed after the posting operation.
This device has been tested out in a number of banks during the last
three years and has given complete satisfaction in every instance. The
double tray unit houses the current monthly checks and statement sheets
pertaining to from 800 to 1000 accounts.
3
M S E J&
414 7th ST.
PHONE 4-3283
DES MOINES
Stationers and Office Outfitters
Northwestern Banker
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Federal Reserve Bank of St. Louis
October 1929
The Morris Plan Bankers Association
celebrated its Tenth Anniversary and the
twentieth anniversary o f the founding o f
the Morris Plan o f Industrial Banking at
White Sulphur Springs, West Virginia,
on September 23, 24 and 25.
Representatives from
Morris Plan
banks serving more than 145 o f the
largest cities in the country attended the
convention.
These institutions have
loaned more than one and one-quarter
billion dollars and have accumulated sav
ings accounts in excess o f ninety million.
The convention program included speak
ers o f national repute. Dr. Julius Klein,
Assistant Secretary o f the United States
Department o f Commerce, were invited
to participate in the program. The A s
sociation had among its guests at the an
nual banquet Governor Wm. G. Conley
o f West Virginia.
Among the entertainment features of
the convention was the annual golf tourn
ament.
F. A. A. Program
The banker, advertising man, or man
ager o f business development who wants
to learn o f the experiences o f some of
the most successful banks and investment
houses in the United States, should attend
the fourteenth annual convention o f the
Financial Advertisers Association which
Avili be held in Atlanta, Georgia, October
30th to November 2nd. At this conven
tion, each speaker will tell his experiences
in building new business ; the problems he
has solved and the results obtained.
37
Every department o f a bank or invest
ment house will be fully covered in the
general and departmental sessions.
The whole program o f the convention
has been built around the theme o f “ How
to” organize and carry out effective new
business and advertising plans. These will
not be theoretical discussions. They will
be the reports o f some o f the outstanding
men engaged in the business o f getting
new business and retaining old business.
Actual demonstrations o f how some of
the leading institutions build their adver
tising programs, how they select their
media, how they discover their advertis
ing assets, and how they build them into
business-getting programs, will be given.
SALMON P. CHASE, S e c r e t a r y o f t h e T r e a s u r y u n d e r L I N C O L N
Another Bank Affiliates
Another key bank in southern Minne
sota, the Austin National Bank, has be
come affiliated with the First Bank Stock
Corporation, Lyman E. Wakefield, presi
dent o f the First National Bank in Min
neapolis and vice president o f the holding
company, announced.
The Austin National for several years
have been commonly known as the Hormel
bank.
Sixty-five per cent o f its stock
has been held by George A. Hormel &
Company and it has served as the depos
itory fo r the packing company’s funds.
Through exchange o f stock, the holding
company acquires ownership o f all the
capital shares o f the bank and o f its
affiliated institution, the Austin National
Company.
Founded in 1892, the second bank or
ganized in Austin, the Austin National
has grown to be one o f the leading insti
tutions in its section o f the state. Three
years ago, the entire capital stock o f the
bank was purchased by the Hormel com
pany and by ten Austin business men,
who guaranteed the deposits and reor
ganized the bank, extending its facilities
by the launching o f the Austin National
Company to participate in the distribu
tion o f securities and do a general insur
ance business, supplementing the gen
eral banking and fiduciary functions o f
the bank. A trust department also was
added. Since its change o f ownership,
the growth o f the bank has been rapid.
Today it has deposits o f $1,700,000 and
resources o f $1,900,000 with a capital o f
$75,000 and surplus and undivided profits
o f $70,000.
The Austin National Company is cap
italized at $75,000 with a surplus o f $75,000. The bank owns the two-story office
building in Avhich it is housed on the cor
ner o f Main and Bridge streets.
The Chase National Bank
of the City of New York
Pine Street corner of Nassau
$
C apital
1 0 5 ,0 0 0 ,0 0 0 .0 0
1 3 7 ,0 6 9 ,4 5 3 .4 0
S u rp lus and Profits
1 ,0 6 4 ,6 8 8 ,9 5 6 .7 9
D eposits
OFFICERS
ALBERT H. WIGGIN
Chairman of the Board
JOHN McHUGH
ROBERT L. CLARKSON
CHARLES S. McCAIN
Chairman of the Executive
Committee
Vice-Chairman of the Board
President
Vice-Presidents
CARL J. SCHMIDLAPP
HUGH N. KIRKLAND
FRANKLIN H. GATES
REEVE SCHLEY
JAMES H. GANNON
T. ARTHUR PYTERM AN
HENRY OLLESHEIMER
W ILLIAM E. PURDY
AMBROSE E. IMPEY
JAMES T. LEE
GEORGE H. SAYLOR
LYNDE SELDEN
SHERRILL SMITH
M. HADDEN HOW ELL
MAURICE H. EW ER
ALFRED C. ANDREW S
ROBERT I. BARR
GEORGE E. W AR REN
GEORGE D. GRAVES
FRANK O. ROE
H ARRY H. POND
JOSEPH C. ROVENSKY
RUEL W . POOR
HUGO E. SCHEUERMANN
RALPH L. CERERO
JAY D. RISING
EDW IN A. LEE
HAROLD W . VANDERPOEL
LEON H. JOHNSTON
W IL LIAM H. MOORHEAD
JAMES BRUCE
W ALT ER S. JELLIFFE
SAMUEL S. CAMPBELL
HORACE F. POOR
W ILLIAM E. LAKE
EDW ARD E. W ATTS
CLAUDE H. BEATY
CHARLES A. SACKETT
J. SPERRY KANE
FREDERICK O. FOXCROFT
ARTHUR W . McCAIN
Vice-President and Cashier
W IL LIAM P. HOLLY
Seaboard and E qu itable M erge
Formal consolidation o f the Seaboard
National Bank and the Equitable Trust
Company o f New York has been com
pleted, merging the identities o f two out-
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Federal Reserve Bank of St. Louis
Foreign and Trust Department Facilities
Northwestern Banker
October 1929
38
standing New York banks. The new in
stitution, with total resources in excess of
$800,000,000 will retain the name and
charter o f The Equitable Trust Company
of New York.
The combined capital, surplus, and un
divided profits o f the consolidated insti
tution will be $90,000,000, divided as fo l
lows: capital, $46,500,000; surplus, $38,500,000; and undivided profits, approxi
mately $5,000,000.
Stockholders o f the Seaboard Bank will
receive Equitable Trust Company stock in
exchange fo r their holdings upon the basis
o f one and one-half shares o f Equitable
stock for each share o f Seaboard.
It is expected that plans fo r an increase
in capitalization and a split-up in the
shares o f Equitable stock will be an
nounced in the near future.
Arthur W . Loasby, who has been presi
dent o f the Equitable, becomes chairman
of the board, and Chellis A. Austin, presi
dent of the Seaboard, becomes president
o f the Equitable.
The Main Offices o f the Seaboard were
moved from the Seaboard Bank building
at 59 Broad Street to the new Equitable
Trust Company building at 11 Broad
Street. Extensive alterations have been
made on several floors o f the Equitable’s
forty-two story building to accommodate
the officers and department personnel from
the Seaboard’s Main Office. Quarters also
have been provided in this building for
divisions o f the Seaboard’s Trust Depart
ment, previously located at 115 Broadway,
as follow s: Corporate Trust, Transfer,
Registration, Reorganization, and Coupon
Paying.
The Seaboard building at the corner o f
Broad and Beaver Streets has been sold
to the Manufacturers Trust Company.
As a result o f the merger, the Equitable
Trust Company will have eight offices in
greater New York. The Seaboard’s Mid
Keep Advertising Your Bank
The most successful banks of which we know are the ones which
have been the most consistent advertisers.
It makes no difference how many years you have been located on
a certain street in any given community, it will pay you to advertise
the fact that you are anxious to secure more business.
After all, new people move into the community, others pass on,
and with the constant changing of population it is always desirable
to keep the prospects of your bank informed as to the service you
render and where you are located.
A bank cannot advertise Thursday bargains or Saturday Special
SHes, like department stores.
A bank must so familiarize the public with its name and its
location that they will instinctively think of that institution when
they think of doing business with a bank.
As one advertising authority has put it: “ The prospect must be
told why this particular bank is a good one to deal with; must be
informed as to its record of achievement, the factors which con
tribute to its safety, and which make its service satisfactory.”
Keep advertising your bank and your business will increase.
Every great business in America today has been built by the help
of advertising— apply this same principle to your institution and
see it grow.— N o r t h w e s t e r n B a n k e r , J u n e , 1 9 2 9 .
Your name is your biggest asset— the
Calendar keeps it before the most peo
ple for the longest time.
T h e B i r t h p l a c e o f A r t C a le n d a r s
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
October 1929
town Office at 24 East 45th Street is to
be consolidated with the Equitable Office
at 45th Street and Madison Avenue as
soon as remodeling o f the quarters there is
completed in the immediate future. Pour
new Equitable offices will be opened dur
ing the next few months at locations al
ready selected in Greater New York.
Representatives o f the Equitable Trust
Company or its subsidiary, the Equitable
Securities Company, Inc., have offices in
the following cities: Philadelphia, Balti
more, Atlanta, Chicago, Dallas, San Fran
cisco, Pittsburgh, Boston and Washington.
As one of the leading American banks
in volume o f foreign business, the Equit
able maintains important branch offices in
London and Paris and also has an office
in Mexico City. Its subsidiary, the Equit
able Eastern Banking Corporation, main
tains offices in Hongkong, Shanghai and
Tientsin, China, and has resources of
$25,000,000. S. Stern, who has been vice
president o f the Seaboard Bank in charge
o f the foreign department, assumes the
same executive post in the Equitable Trust
Company.
The London Office o f the Equitable at
Moorgate E. C. 2 is the oldest established
office o f any American bank in that city.
It operates a branch fo r tourists in the
West End section. The Equitable’s Paris
office occupies its own building at 41 Rue
Cambon and maintains a staff o f several
hundred people. In recent years it has
ranged from twelfth to fourth in clearings
at the Paris Clearing House.
The Seaboard and the Equitable Trust
Company both have made remarkable
progress in the last few years and have
developed into complete financial institu
tions with departments providing every
type o f banking service.
Japanese Banking
The dominant position in Japanese
financial operations held by a group of
five banks is strikingly revealed in a study
of Japanese banking which has just been
issued by the Department o f Commerce.
This group which is composed of the
Mitsui, Mitsubishi, Dai-ichi, Sumitomo
and Yasuda banks is commonly known as
the “ Big Five” and in many respects re
sembles its counterpart in Great Britain.
These five banks, the survey reveals,
hold roughly one-third o f all “ ordinary
bank” deposits in Japan. This concen
tration o f assets is best realized from the
fact that the remaining two-thirds is held
by 1,026 banks. The 1,031 ordinary banks
together held, at the end o f 1928, over 78
per cent o f all bank deposits in Japan.
The remaining 21 per cent rests in almost
equal amounts with the “ special” govern
ment controlled institutions, such as the
Bank o f Japan, the Yokohama Specie
Bank, Bank o f Chosen, etc. Taking the
sum total o f all deposits in Japan— “ ordi
nary bank,” “ special bank” and savings
bank— the “ Big Five” hold over 26 per
39
cent. In the case o f loans the “ B ig F ive,”
while still exercising an influence out o f
all proportion to their number, occupy a
someAvhat less dominant position than in
deposits.
An interesting comparison is made by
adding to those o f the “ Big Five” the
deposits and loans o f nine other ordinary
oanks. The resultant group o f 14 banks
is shown to control 5,062 million yen o f
deposits, or 54.93 per cent o f the deposits
o f all ordinary banks in Japan proper.
The deposits o f the “ Big Five” are more
than two and one-half times as great as
those o f Japan’s 100 savings banks com
bined. The latter totaled 1,241 million
yen at the end o f 1928. I f to that amount
is added 1,743 million yen, representing
deposits in the postal savings system, the
resultant 2,984 million yen is less than the
deposits o f the “ Big Five” whose 3,130
million yen compare AV'ith 1,300 million
yen on deposit with the special banks.
Chicago as a Stock T rad in g
Center
By
LA SALLE ADAMS
Chicago’s rise as a stock trading center
has been meteoric in the last few months;
even in the last few weeks. Chicago’s new
financial story is without parallel in the
financial history o f the world. Overnight,
almost, this city has become an enormous
factor in stock and bond trading.
When a new1 law went into effect on
July 1st, passed earlier in the year by the
Illinois legislature, a situation that had
handicapped the Chicago market seriously
fo r years was remedied. It had been the
law almost from pioneer days that money
could not be loaned in Illinois legally for
brokerage purposes at a rate o f more
than 7 per cent.
As a result of that law the early months
o f 1929 found more than $400,000,000 of
Chicago and central west money in the
New York market sent there by Chicago
banks. The Chicago banks were paying
the New York banks % o f 1 per cent as
a “ handling charge.” That meant at the
above amount o f loans $ 2 ,0 0 0 ,0 0 0 a year
in charges.
With the interest disability removed
that money is now coming back swiftly
into the Chicago market. W hy? Because
the Chicago banks can make their own
loans, at the New York call money rate,
and save the handling charge.
“ Show the bankers how they can make
$ 2 ,0 0 0 ,0 0 0 a year and, well, they’ll kiss
you,” a man who has been a factor in La
Salle street for a long time commented
recently.
And here is another picture:
Two years ago a seat on the Chicago
Stock Exchange could be bought fo r
$3,000. The highest price paid that year,
after the turn came, was $10,500. In
1928 a seat was sold fo r $75,000. Last
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Federal Reserve Bank of St. Louis
i t m
L
Y
l U
G
VO«Bt
SEC U R ITIES
Series No. 7
Can You Analyze
the Value
o f a Security?
Guesswork, amateur opinion and the "‘tips” of
well-meaning friends have no place in the serious
business of investing for profit. Intrinsic value is
what the investor must look for. To do so requires
shrewd investment knowledge. Do you feel you
can analyze a security and ascertain its actual
value? Can you get the facts?
The statistical department of E. Raymond Dutro
is engaged constantly in this business of fact find
ing. We have the personnel and the facilities,
know what we are looking for, and know how to
get the desired information. As a result we are
able to give a complete classification and actual
worth and income value of your present holdings
or your contemplated purchases.
Our analytical service is yours for the asking,
without obligation of any sort. This service is
absolutely confidential, and the findings are pre
pared in permanent form and placed on your desk
for ready reference.
Write us. Your inquiry will
receive our prompt atten
tion, and we will explain in
detail what our service is,
and what it would do for you.
Northwestern Banker
October 1929
40
week a seat was sold fo r $110,000. Trad
ing on the Chicago Stock Exchange has in
creased 700 per cent in two years.
Now let us examine the figures to find
out what the return o f $400,000,000 to
Chicago from New York means to Chi
cago. There is in the United States today
about $5,000,000,000 in money. With that
money a credit business o f approximately
$60,000,000,000 is done. Sixty per cent
of the money in the United States is in
banks as deposits; the rest in pants pock
ets and tills.
Returning $400,000,000 to Chicago, at
that proportion, would put something like
$240,000,000 more in Chicago bank de
posits.
Probably the amount is even
greater than that because this is invest
ment money. Financial men will tell you
that this money ought to be loaned fast
enough so that it will build up a credit
o f twelve to one.
In other words, the contention of some
o f the ablest minds on La Salle street is
that the return of $400,000,000 in Chicago
money to the Chicago market ought to in
crease the credit machinery o f the city
$4,800,000,000.
While no financial writers have an
alyzed the new' situation in just these
terms for the public prints to date the
change has apparently been sensed. Since
April 1st seventy-eight newspapers in
eighteen states, formerly receiving only
pony reports daily, have started to receive
full Chicago Stock Exchange reports.
These newspapers are supplied with this
service by the Associated Press and United
Press.
One year ago the Chicago Stock E x
change tickers were operated only in Chi
cago and New York. Today 376 tickers
are operated in twenty-six cities. These
reach to New York on the east; Cincinnati,
Louisville and St. Louis on the south;
Kansas City and Omaha to the west, and
Minneapolis and St. Paul to the northwest.
Service has just been authorized ex
tending the eastern loops to Philadelphia,
Baltimore and Washington.
Boston,
Hartford and Providence are soon to be
added. Extensions to Memphis, Little
Rock and New Orleans have been auth
orized to the south, to Tulsa, Oklahoma
City, Port Worth, Dallas, Topeka, W ich
ita and Sioux City to the west and south
west.
(Turn to page 76, please)
W h y G roup B a n k in g ?
The Northwest is going in fo r group
banking because that section wants to
make more o f its great natural resources,
to effect industrial and agricultural de
velopment and to reach out fo r wider
markets than it has hitherto enjoyed,
and to accomplish these ends, it must
have strong banking facilities, said Tre
vor O. Hammond, vice president Na
tional Bank o f Montana, Helena, in an
address before the general convention o f
the American Bankers Association in San
Francisco.
The Northwest is playing a large part
in the group banking movement, said Mr.
Hammond, and the group to which he be
longs was formed because it is believed
that it is the best way to facilitate and
advance the present business and future
growth o f the Ninth Federal Reserve Dis
trict, which includes the state o f Minne
sota, North Dakota, South Dakota, Mon
tana, the northern part o f Michigan and
the northern part o f Wisconsin.
“ You need have no fears that we plan
to become a part o f a national chain,”
said Mr. Hammond. “ This group is de
signed to serve the Northwest territory
solely and exclusively and the distribu
tion o f its stock in small units over the
Northwest makes it unlikely that control
could ever pass to outside hands.”
O f group banking in general and its
rapid recent development, Mr. Hammond
In offering correspondent service,
there is no substitute for good results.
F llV U
^
IOWA STATE
O A X T IZ
1 TRUST & SAVINGS D X T l I M I V
Capital $600,000.00
BURLINGTON, IOWA
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
October 1929
said: “ I f public opinion and business
progress go hand in hand with big busi
ness and merging o f capital fo r the good
o f all, group banking must be the solu
tion in those states which prohibit branch
banking; and, if big business and larger
units be the order o f the day in other lines
— then banking must follow 1or lead.”
Mr. Hammond declared that the North
west had been retarded in its progress and
development because of unsettled and un
satisfactory general banking conditions,
brought about chiefly through economic
conditions. He explained that the group
ing plan definitely contemplates the re
tention o f the local management and con
trol o f the affairs o f the bank in the hands
o f those men who have heretofore shown
their capability and the central office is
being set up with that defined purpose in
mind. Only banks o f the highest stand
ing and o f a known and long record for
integrity, success and earning power have
been invited to affiliate in the new move
ment.
Mr. Hammond said that those who had
joined the group believed they had ad
vanced five years in a few weeks. He
thought that those who were committed to
the Federal Reserve System must approve
the group plan in theory, fo r within the
credit limits o f the group, group banking
will furnish that same mobility and ex
pansion o f credit to meet seasonal and
local demands that commends itself as a
virtue in the Federal Reserve System.
Mr. Hammond expressed the belief that
favoritism toward some industry or in
terest from the group management was
less to be feared than the attitude o f a
“ fickle Congress,” with the power o f legis
lation and “ the impulse o f politics” to
change the Federal Reserve system law to
the prejudice o f any industry. A s to
apprehension about local bank officials
having to give way to “ clerks” under the
group banking arrangement, Mr. Ham
mond asked whether such great railroad
systems as the Great Northern and the
Southern Pacific were o f less service to
day to the communities they serve than
at the time before their formation when
a number o f small railroad units, from
which they were formed, served these
territories. “ Can you not see,” he asked,
“ in the development o f the strong modern
railroad system from the weaker units an
omen o f the efficient service the future
bank group will be rendering the terri
tory it serves?”
Mr. Hammond said it must be admitted
that, instead o f being in advance, the
banking facilities o f the United States,
taken as a whole, are behind the progress
“ o f each transportation, communication
and factory mass production” and far be
hind the general public in disposition to
worldmindedness in the matter o f dispos
ing o f surplus production in the world
markets.
(Turn to page 76, please)
41
T w o and O n e -H a lf B illio n s In
Investm ent Trusts
ORE than one ancl a half billion
dollars o f capital was invested by
the American public in invest
ment trust shares during the first eight
months o f 1929. Thils brings the total o f
investment trust funds in this country to
approximately two and a half billion dol
lars, which will probably be increased by
at least another half billion by the end o f
this year, according to a survey just made
public by the Research Department o f
Lawrence Stern and Company, Chicago
and New York investment bankers.
M
In 1928 investment trust offerings were
per cent o f the country’s total stock is
sues; in the first six months o f 1929 they
were 41 per cent; in July of this year, 60
per cent; and in August, 87 per cent. In
spite o f this very rapid growth, it is the
conclusion o f the Stern survey that the
field fo r investment trusts is practically
unlimited, and that “ the large volume of
capital currently being placed in such
companies represents the broad swing o f
a major change in financing methods
rather than the overdoing o f one particu
lar type of security.”
12
A
C o m p a r iso n
F U R TH E R interesting commentary
on the magnitude o f American in
vestment trust financing is noted by the
survey in a comparison with similar com
panies in Great Britain. The investment
trust form o f financing originated in Scot
land and England about sixty years ago.
A recent estimate places the aggregate re
sources o f British trusts at approximately
one billion dollars. In contrast to this
amount, representing a sixty-year growth,
the American public has already invested
this year in investment trusts an amount
one and one-half times as large as the total
British figure.
A
“ I f the vast volume o f investment trust
financing in America,” the Stem survey
continues, “ were solely the result o f the
public appetite for a certain type o f pop
ular security, economists might well view
the large volume o f this financing with
concern. However, an analysis and study
o f the various individual investment trusts
fails to reveal that any large proportion
o f them are without real reason for exist
ence and a reasonable prospect for profit
to the shareholders. Of course there are
some weak organizations in this field— as
in any other— and when any type of
financing becomes extremely popular, it is
unavoidable that there should be offered to
the public a considerable number o f illconsidered projects which have for their
basis simply the desire to meet public de
mand rather than a sound economic basis.
The number o f such offerings in the in
vestment trust field, however, appears to
be smaller than might be expected. The
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Federal Reserve Bank of St. Louis
Modern
Bank
Lobbies
— are progressing steadily towards an
ideal of perfection and beauty. It is
not so much that hankers are becom
ing more artistic, hut rather that they
are learning the commercial value of
beautifying the surroundings in which
they daily meet their customers.
While a particular style of solid
beauty pervades Fisher Bank Fixtures
their real reason for existence is not
overlooked, namely that of providing
efficient working quarters.
Fisher Fixtures a r e reasonably
priced, and available in a large variety
of styles. Keep The Fisher Company
in mind when drawing up plans for
your new building or remodeling the
interior of your present quarters.
fJhe <
\7iiff'.er(?o.
Cherries City,
Northwestern Banker
October 1929
42
more important factors in this field and
the great majority o f trusts now being o f
fered are sponsored by bankers and direc
tors who are entirely capable o f bringing
about satisfactory results for investors
through proper management o f large ag
gregations o f capital and who have sound
investment programs.
“ It is sometimes assumed by observers
who have not studied the question deeply
that the purpose o f all investment trusts
is simply to buy and sell securities listed
on the various stock exchanges, and the
question is often asked as to what diffi
culties may be encountered by these com
panies when there comes a period o f pro
tracted dullness and falling prices for
common stocks.
“ I f the sole basis o f present-day invest
ment trust financing in this country were
to operate in listed stocks, this question
would be a very serious one. However, the
investment trust field as it is developing
is very much broader than that o f mere
trading in listed securities. The present
tendency o f the larger trusts sponsored by
responsible bankers is to have a charter
permitting absolute freedom of operation
in any field, and, in most cases, either the
primary or an important secondary pur
pose o f these trusts is to operate broadly
in some specialized field in which the bank
ers and directors have special technical
knowledge and special advantages through
their contacts and associations.
S tr o n g S p o n so r s h ip
-that's all
you needto know/
Eppley
Hotels
are
known
throughout the country for hospi
tality, courtesy, service.
If it’s an
Eppley Hotel, “ that’s all you need
to know!”
IN I O W A
IN N E B R A S K A
C O U N C IL B L U F F S ..................
............................. Hotel Chieftain
O M A H A ................Hotel Fontenelle
......................... Hotel Rome
.........................Hotel Logan
M A R S H A L L T O W N ................
............................... Hotel Tallcorn
(Apartment Hotel)
C E D A R R A P I D S .........................
............................. Hotel Montrose
L I N C O L N .................. Hotel Lincoln
..................... Hotel Capital
S I O U X C I T Y ............. Hotel Martin
N O R F O L K ................... Hotel Norfolk
IN S I O U X F A L L S , S. D.
Hotel Carpenter
Hotel Cataract
^ Q O p era ted b y
__
Ep p le y Hotels Com pany
E .C .E P P L E Y ,
EXECUTIVE
Northwestern Banker
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Federal Reserve Bank of St. Louis
P R E S ID E N T
OFFICES
October 1929
~
OMAHA
NO TH ER factor that makes fo r pub
lic confidence in this type o f finan
cing is found in the very strong sponsor
ship which is back o f most o f the larger
companies. Nearly all the large banking
houses in America are associated— directly
or indirectly— with one or more big in
vestment trust organizations. In fact, the
larger volume o f capital in the investment
trust field is now represented by trusts
having the sponsorship o f some particular
banking house or houses; and, generally
speaking, the greatest public interest has
been in those having such sponsorship, be
cause o f public confidence in the record
and resources o f well known banking or
ganizations.
A
“ A feature that is sometimes overlooked,
but which has been especially stressed by
some of the older investment trusts which
have carefully studied the methods of
English and Scottish companies, is the
fact that an investment trust is by no
means limited to the domestic securities
market— even though its piincipal field of
operation be in securities. Not only do
mestic securities, but also those o f the en
tire world, are available for the investment
trust portfolio. A tabulation o f average
levels on the various stock exchanges of
the world over a period o f years shows
that when securities are at a high level in
one country, they are apt to be at a low
level in another country; and by careful
43
study o f the international financial situa
tion, profitable foreign investments can be
made by competent investment trust man
agers at practically any time.
“ In view o f the almost unlimited field
for operation— only a few' examples o f
which have been called to attention herein
— it may well be that the future develop
ment o f investment trusts in the United
States will far surpass in importance those
which have been witnessed in the past two
or three years.
“ Owing to the very short time that most
o f the investment trusts in this country
have been in operation, the stocks o f these
companies have been necessarily selling on
a basis o f future prospects rather than
past performance. This condition cannot
continue indefinitely and the time must
soon come when these companies— as is
the case with other corporations— must es
tablish a market fo r their shares on the
basis o f their records rather than pros
pects.”
Giannini to Seek Midwest
Stockholders
Foreshadowing the extension o f the
Transamerica banking system into the
middle west, A. P. Giannini, president of
Transamerica Corporation, recently an
nounced that 1 , 0 0 0 ,0 0 0 shares had been
set aside, preferably for subscription by
residents o f states other than California,
and an additional 1 ,0 0 0 ,0 0 0 shares fo r
present stockholders o f the corporation.
This operation will place $115,000,000 o f
new money in the company’s treasury for
investment.
Through this financing, Transamerica,
which now controls or effectively controls
corporations with total resources o f more
than $2,365,000,000 and ranks third or
fourth among American corporations in
number o f stockholders, expects to in
crease the number o f its owners from
135,000 to 500,000. The greater percent
age o f their new owners, it is expected,
will be residents o f the middle west, most
o f its present owners being natives of
California or New York.
Commenting on the purpose o f this
stock issue, President Giannini said:
“ It is mainly intended in the judicious
placement o f the issue to advance our wellestablished plan looking toward nation
wide development in the banking and in
vestment field, through an introduction o f
our corporation to an ever-increasing
number o f residents in other states, and
at the same time widen still more the dis
tribution o f our stock among small and
permanent investors throughout the na
tion.”
He who freely magnifies what hath been
nobly done, and fears not to declare as
freely what might be done better, gives
ye the best covenant o f his fidelity.—
Entrust Y o u r
Business to a B ank
W ith W o rld -W id e
C on n ection s
T h e fa c t th a t we n u m b e r a m o n g
our extensive list of correspon
d en ts the largest and th e strongest
banks of the cou n try is a m a tte r
of som e pride w ith us.
T o cou n try banks in the sm aller
cities and tow ns th is circu m stan ce
has a practical ad vantage as w ell:
n o t on ly are we able to collect the
business c o m m itte d to our care
th rou gh the q u ickest and m o st
reliable ch an n els, b u t we can m ak e
telegraphic transfers to every p o in t
con ven ien tly and w ith no delay.
A ll p oin ts in the T h ird Federal
Reserve D istrict reached direct.
A ll ite m s received at par.
...THE...
P H IL A D E L P H IA
NATIONAL
BANK
ORGANIZED 1803
P H IL A D E L P H IA , P A .
Capital and Surplus $ 5 0 , 0 0 0 , 0 0 0
John Milton.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Northwestern Banker
October 1929
44
CURRENT QUOTATIONS
O n a representative list o f H IG H G R A D E R A IL R O A D , P U B L IC U T I L I T Y ,
IN D U S T R IA L , C A N A D IA N and F O R E IG N B O N D S
Security
Bid Asked
Alabama Pr. Co. 5s, 1951....................... 99
99%
Alberta, (Canada) 4% s, 1956............... 90
90%
Amer. Chain Co. 6s, 1933........................ 97% 97%
American Radiator 4% s, 1947.............. 94% 95
Amer. Roll. Mills Co. 5s, 1948.............. 95% 95%
Amer. Smelt. & Refg. Co. 5s, 1947.. 100% 100%
Amer. Sugar Refg. Co. 6s, 1 9 3 7 .... 102% 102%
Amer. Tel. & Tel. 4% s, 1933............... 99% 100
Amer. Tel. & Tel. Co. 5s, 1960............. 102% 102%
Amer. Tobacco Co. 4s, 1951................... 85
85%
Amer. W tr. Wks. & Elec. 5s, 1 9 3 4 ... 99% 99%
Appalachian Elec. Pr. Co. 5s, 1956.. 95
95%
Appalachian Pr. Co. 5s, 1941................ 99% 99%
Argentine 6s, 1958..................................... 98% 98%
Associated Oil Co., 6s, 1935................... 1 0 1 % 101%
Atch. Top. & S. Fe. Ry. 4% s, 1962.. 92% 93
Atl. Coast Line R. R. 4s, 1952.............. 86% 86%
Australia 5s, 1955 .................................. 91% 91%
Austrian 7s, 1943.........................................102% 102%
Baden Consol. Mun. 7s, 1951................ 92% 92%
Bald. Loco. Wks. 5s, 1940........................106% 107%
B. & O. R. R. 5s, 2000............................. 99% 99%
B. & O. R. R. 4% s, 1933......................... 96% 963,4
Batavian Pet. Co. 4% s, 1942................ 90% 90%
Bavaria, Germany, 6% s, 1945.............. 90% 90%
Belgium 6s, 1955........................................ 99% 100
Bell Tel. Co., Canada, 5s, 1955........... 99% 100
Bell Tel. Co., Penn., 5s, 1948................. 103% 103%
Berlin (Germany), 6% s, 1950............... 91% 91%
Berlin E. E. & Und. Rys. 6% s, 1956. . 88% 88%
Beth. Steel Corp. 5s, 1936....................... 99% 99%
Bolivia, Rep. of 7s, 1969......................... 81% 81%
Boston Cons. Gas Co. 5s, 1947............. 99% 100
Brazil 6% s, 1957...................................... 87% 88
Bremen, (Germany) 7s, 1935...............100% 100%
Brisbane, Australia, 5s, 1957............... 89% 90
British Columbia, 4% s, 1951............... 91% 92
Brooklyn Borough Gas 5s, 1967.........100% 101
Brooklyn Edison 5s, 1949...................... 102% 102%
Brooklyn Union Gas 6s, 1947..............115% 115%
Buenos Aires 6% s, 1955.......................... 100% 100%
Buenos Aires, Prov. 7s, 1952............... 98% 99
Buffalo Gen. Elec. Co. 5s, 1939...........100% 100%
Bush Terminal Bldg. 5s, 1960............. 99% 100
Butts Electric Pr. Co. 5s, 1951........... 99% 100%
Calif. G. & E. Co. 5s, 1937................... 97% 98
99%
Calif. Pet. Corp. 5% s, 1938................. 99
Canada 4% s, 1936.................................... 97% 97%
Cañad. Nat’l Ry. Co. 4% s, 1957........ 913/s 91%
Cañad. Pacific Rys. 4% s, 1946........... 96% 96%
Carolina Pr. & Lt. Co. 5s, 1956........... 97% 97%
Cauca Valley, Dept, of 7s, 1948......... 95% 96
Cent, of Ga. Ry. 5s, 1945..................... 1013,4 101%
Cent. 111. Lt. Co. 5s, 1943....................... 983,4 99
Cent. 111. Pub. Serv. 5s, 1956............... 93% 94
. 77% 78
Cent. New Eng. Ry. 4s, 1961..
.100% 100%
Cent. Pacific Ry. 5s, 1960........
. 89% 89%
Cent. Pr. & Lt. Co. 5s, 1956. .
97%
. 97
C. & C. Ry. Co. 5s, 1939...........
C„ B. & Q. R. R. 4s, 1949........
. 88% 88%
Chgo. Mem. & Gulf R. R. 5s, li
. 93% 94
. 80% 80%
• 91% 91%
93%
C„ R. I. & P. R. R. 4s, 1934............. . 93
Chgo. Union Stat. 4% s, 1963........... • 94% 94%
Chile 6s, 1960........................................ . 89% 90
Chile Mtge. Bank of 6% s, 1 9 5 7 ... • 93% 93%
Cincinn. St. Ry. 5% s, 1952............... . 92% 93
Cities Service Co. 5s, 1966................. . 83% 83%
C. C. C. & St. L. R. R. 4s, 1993. . . . 85% 85%
C. C. C. & St. L. R. R. 4% s, 1977. . • 91% 91%
C. C. C. & St. L. R. R. 5s, 1963___ . 99% 99%
Clev. Union Term. 5s, 1973................. 100% 101
Cologne, (Germany) 6% s, 1950......... 91% 91%
Colombia, Rep. of 6s, 1961.................... 79% 79%
Colorado Pr. Co. 5s, 1953...................... 97% 98%
Columbia Gas & Elec. 5s, 1952........... 97% 98
Columbus Ry. Pr. & Lt. 4% s, 1 9 5 7 ... 89% 89%
Commonwealth Ed. Co. 4% s, 1 9 5 6 ... 93% 93%
Connecticut Lt. & Pr. Co. 4% s, 1956 96
96%
Cons. Gas, N. Y „ 5% s, 1945.................104% 104%
Consumers Pr. Co. 5s, 1952.................101
101%
Copenhagen, (Denmark) 5s, 1 9 5 2 .... 93% 94
Costa Rica 7s, 1951.................................. 90% 91
Cuba Railroad 5s, 1952.......................... 81% 82
Cuba, Rep. of 5% s, 1953.........................101% 1013,4
Cudahy Pack. Co. 5s, 1946.................... 98% 98%
Cumberland Co. Pr. & Lt. 4% s, 1956 89
89%
Czechoslovak 8s, 1951............................109% 109%
ST. LOUIS
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Security
Bid Asked
N.
Orleans Term. Co. 4s, 1953.......... 83% 83%
New South Wales 5s, 1958.................... 91% 913,4
N. Y. Cent. Lines 4% s, 2013................ 95% 95%
New York Edison Co. 5s, 1944............ 101% 101%
New York Pr. & Lt. Co. 4% s, 1967.. 913/s 91%
N. Y. Tel. Co. 4% s, 1939...................... 97% 97%
Niagara Falls Pr. Co. 5s, 1932........... 99% 100
Nor. Ind. Pub. Service Co. 5s, 1966.. 94% 95
Nor. Pac. Ry. Co. 4s, 1997.................... 85% 85%
Nor. States Pr. Co. 5s, 1941...................100% 100%
Norway, Kingdom of 5% s, 1965......... 98% 99
Nuremburg, City of 6s, 1952................ 83% 83%
Ohio Pr. Co. 5s, 1952............................. 99% 9 9 %
Ohio Riv. Edison Co. 5s, 1951.............. 97% 97%
Ontario, Prov. of, 4% s, 1931................ 96% 97%
Ontario Power Co. 5s, 1943...................101% 101%
Oregon Wash.R.R. & Nav.Co. 4s, 1961 84% 84%
Oslo, Norway, 5% s, 1946...................... 96% 96%
Pacif. Coast Pr. Co. 5s, 1940................ 91% 97%
Pacif. Gas & Elec. Co. 5s, 1942............. 101% 1013/8
Pacif. Tel. & Tel. Co. 5s, 1952.............101% 102
Panama 5% s, 1953..................................... 101% 102
Penn. Central Lt. & Pr. 4% s, 1977.. 87% 88
Penn. R. R. Co.5s, 1964.......................... 101% 102
Penn., Ohio & Det. R. R. 4% s, 1977. . 93% 93%
100%
Penn. Pr. & Lt. Co. 5s, 1953...............100
Peoples Gas Lt. & Coke Co. 5s, 1947.101% 101%
Pere Marquette Ry. 5s, 1956................. 100% 101
Peru, 6s, 1960............................................. 81% 82
Phila. Elec. Co. (Pa.) 4% s, 1967......... 97% 98
Pillsbury Flour Mills Co. 6s, 1943. . . .102% 102%
Potomac Edison Co. 5s, 1956................ 94% 94%
Pressed Steel Car Co. 5s, 1933............. 86% 87
Prussia, (Germany) 6% s, 1951............ 89% 89%
Pub. Service Elec. & Gas 4% s, 1967.. 96% 96%
Queensland, (Australia) 7s, 1 9 4 1 .... 109% 109%
Republic Iron & Steel 5s, 1940............. 100% 100%
Rhine-West. Elec. Pr. 7s, 1950............ 99% 100
Rio Grande do Sul 7s, 1966................. 92% 93
Rio de Janeiro 8s, 1946............................102
102%
Rotterdam, (Holland) 6s, 1964............. 103% 103%
St. L „ Ir. Mt. & So. Ry. 5s,1931____ 99-% 99%
St. Paul Gas Lt. Co. 5s, 1944.............. 98% 99
St. Paul Union Stk. Yds. Co. 5s, 1946 98
98%
Salvador 8s, 1948.........................................10678 107
San Joaquin Lt. & Pr. 5s, 1957.......... 97% 97%
San Paulo, City, 8s, 1952......................108% 108%
San Paulo, State, 8s, 1936......................101% 102
Saskatchewan, Prov., 5s, 1943.............. 97% 98%
Sauda Falls Co. 5s, 1955..........................1013/8 101%
Saxon Pub. Wks. 7s, 1945....................... 92% 92%
Shawinigan W tr. & Pr. Co. 4% s, 1967 89% 90
Shell Union Oil 5s, 1947....................... 92% 93
Sherman Hotel Co. 5% s, 1930........... 98
98%
Siemens & Halske, A. G. 7s, 1936_____ 102% 102%
Sinclair Pipe 5s, 1942............................... 92% 92%
Sixty-one Broadway Bldg. 5% s, 1950 96% 96%
Solvay Amer. Inv. 5s, 1942................... 91% 92
Southern Bell Tel. & Tel. Co. 5s, 1946 100% 101
Southern Calif. Edison Co. 5s, 1951.. 98% 98%
So. Pac. 4% s, 1968.................................. 91% 92
Southern Ry. Co. 4s, 1956..................... 85% 86
Southwest Bell Tel. 5s, 1954.................101% 101%
Stand. Oil Co., N. Y., 4% s, 1951___ 92%
93
Stand. Mill. Co. 5% s, 1945...................... 102% 102%
Sun Oil Co. 5% s, 1939...............................100% 100%
Swedish Gov’t. 5% s, 1954........................ 103% 103%
Swift & Co. 5s, 1944.................................. 99% 100
Swiss Gov’t. 5% s, 1946.............................. 102% 102%
Texas Pr. & Lt. Co. 5s, 1937............... 96% 97%
Toronto, Canada, 5s, 1934..................... 96% 97%
Union Oil Co., Calif., 5s, 1935........... 96% 97
Union Pac. R. R. 4s, 1947.................... 92
92%
U. K. Gt. Br. 5% s, 1937.......................102
102%
United Steel Wks. 6% s, 1951............... 84% 85
Uruguay 6s, 1960...................................... 97% 97%
Utah Lt. & Tr. Co. 5s, 1944................. 89% 90
Va. Ry. & Pr. Co. 5s, 1934................... 99% 100
Wabash Ry. 5s, 1976................................ 95% 95%
Wash. Wtr. Pr. Co. 5s, 1939............... 99
99%
West Penn. Pr. Co. 5s, 1946............... 99% 99%
Western Electric Co. 5s, 1944............... 101% 101%
Western Md. Ry. 4s, 1952..................... 73 % 74
Western Pacif. R. R, 5s, 1946............. 95% 96
Western Union Tel. Co. 4% s, 1950.. 96% 97
Wheeling Steel Corp. 4% s, 1953......... 85% 86
Winnipeg, (Canada) 4% s, 1946........... 90% 91%
Yadkin River Pr. Co. 5s, 1941............. 99% 99%
Youngstown Sheet & Tube 5s, 1978.. 99% 100
CAMP, THORNE & CO., Inc.
New York
MINNEAPOLIS
Security
Bid Asked
Danish Con. Mun. Loan 5% s, 1955.. 96% 96%
Delaware & Hudson Co. 4s, 1 9 4 3 ....■ 89% 89%
Denmark 5% s, 1955
. 99% 99%
Denmark, King, of 6s, 1 9 4 2 ................103%
.103% 103%
Denver G. & E. Lt. Co. 5s, 1951
■ 97% 98
Det. City Gas Co. 5s, 1950.........
. 96% 96%
Detroit Edison Co. 5s, 1949..................101%
101% 101%
Dominican Republic 5% s, 1942
. 92% 92%
Duquesne Lt. Co. 4% s, 1 9 6 7 ...
■ 95% 96
Dutch East Indies 6s, 1947................... .102%
102% 102%
Edison Elec. Ilium. 4% s, 1930.............. 99
99%
Elec. Pr. Corp. (Germany) 6% s, 1950) 91% 92
Finland, Rep. of 6s, 1945...........
86% 86%
Fla. Pr. & Lt, Co. 1st, 5s, 1954
. 83% 84
Ft. Worth Pr. & Lt. Co. 5s, 1 9 3 1 .... 98
98%
France 7s, 1949................................
108% 109
General Elec. Co. 3% s, 1 9 4 2 ....
94% 94%
Gen. Motors Acc. Corp. 5s, 1930......... 99
99%
General Pet. Corp. 5s, 1940................. 98% 99
Ga. & Alabama Ry. 5s, 1945................. 86
86%
Georgia P. Co. 5s, 1967.......................... 94% 95
Georgia Ry. & El. Co. 5s, 1932........... 98% 98%
German 7s, 1949....................................... 105% 105%
German Cen. Agr. Bank 7s, 1 9 5 0 .... 94% 94%
German Con. Mun. Loan, 7s, 1 9 4 7 .... 80% 80%
German Ge. Elec. Co. 6% s, 1 9 4 0 .... 126
126%
Goodyear T. & R. 5s, 1957...........
89% 90
Grand Trunk West. Ry. 6s, 1936 . .103% 103%
94%
Grt. Nor. Ry. Co. 4% s, 1 9 7 6 ....
Great Western Pr. Co. 5s, 1946........... 98% 99
Greek Gov’t 7s, 1964.............................. 91% 913/s
Gulf Oil Corp., Pa., 5s, 1947............... 99
99%
Haiti, Republic 6s, 1952.......................... 97% 98
Hamburg, Germany 6s, 1946............... 90% 90%
Hocking Valley R. R. 4% s, 1 9 9 9 .... 92% 92%
100%
Hudson County Gas Co. 5s, 1 9 4 9 .... 100
Humble Oil & Refg. Co. 5% s, 1932.. 100% 100%
Hungary, Kingdom 7% s, 1944............ 100% 100%
89%
Hungary Municipal 7% s, 1945............ 89
Idaho Power Co. 5s, 1947..................... 97% 97%
111. Bel. Tel. Co. 5s, 1956.........
.101% 102
111. Cent. Ry. 43,4s, 1966............
. 95% 95%
111. Pr. & Lt. Co. 5s, 1956........
. 88% 88%
• 98% 98%
Ind. Mich. Elec. Co. 5s, 1 9 5 7 ...
. 99% 99%
Ind. Pr. & Lt. Co. 5s, 1 9 5 7 ....
• 95% 95%
Inland Steel Co. 4% s, 1978.........
. 91% 92
Internat. Paper Co. 5s, 1 9 4 7 ...
• 86% 87
Internat’l Ry. C. A. 6% s, 1947.
. 90% 91
Interstate Pr. Co. 5s, 1957........
• 85% 85%
. 88
88%
Iowa Pub. Serv. Co. 5s, 1 9 5 7 ...
Italy 7s, 1951..................................
■ 95% 95%
.102% 102%
.101% 101%
K. C. Southern Ry. Co. 5s, 1 9 5 0 .... • 98% 98%
K. C. Term. Ry. Co. 4s, 1960............. . 85% 85%
Kansas Pr. Co. 5s, 1947....................... ■ 88% 89
Laclede Gas Lt. Co. 5s, 1934............. 99% 100
92
92%
Lehigh Valley R. R. 4% s, 2003........
Ligg. & Myers Tob. Co. 5s, 1 9 5 1 ... 99% 100
78% 79
Lorillard Co. 5s, 1 9 5 1 ......................
L. & N. R. R. Co. 4s, 1940................... 92% 92%
Louisville G. & E. Co. 5s, 1952...........100% 101
Louisville Lighting Co. 5s, 1953......... 97% 98
Lyons, City of 6s, 1934............................ 99% 99%
Maine Cent. R. R. 4% s, 1935............... 93% 93%
97%
Manitoba Power Co. 5% s, 1951......... 97
Mass. Gas Co. 4% s, 1931..................... 97% 98
Mich. Cent. R. R. Co. 5s, 1931........... 99% 100
Mid. Steel & Ord. Co. 5s, 1936........ 99%
Milwaukee Gas Lt, Co. 4% s, 1 9 6 7 ... 94% 95
Minnesota Pr. & Lt. Co. 5s, 1 9 5 5 ... 97% 97%
Minn. St. P. & S. S. M. Ry. 4s 1938.. 85% 86
Miss. Riv. Pr. Co. 5s, 1951................... 99% 99%
Mo. Kans. & T. R. R. 4s, 1990............. 81% 82
Mo. Pac. R. R. 5s, 1977......................... 94% 95
Montana Power Co. 5s, 1943................100% 101
Montevideo (Uruguay) 7s, 1952......... 98% 98%
Montreal, (Canada) 4% s, 1946........... 91% 92%
Morris & Co. 4% s, 1939....................... 77% 78
Mutual Fuel Gas Co. 5s, 1947............. 100
100%
Narragansett Co. 5s, 1957..................... 96% 96%
National Press Bldg. 5s, 1950............... 88
88%
National Tube Co. 5s, 1952.....................104% 104%
Netherlands 6s, 1972..................................102% 103
New Brunswick (Can.) 4% s, 1 9 3 6 ... 95% 96%
New Eng. G. & E. Co. 5s, 1947........... 85%s 86
New Eng. Tel. & Tel. Co. 4% s, 1961 96%8 97
Newfoundland 5% s, 1942......................... 100% 101%
DES MOINES
October 1929
DAVENPORT
DENVER
PORTLAND
SEATTLE
MILWAUKEE
Chicago
SAN FRANCISCO
Bonds and Investments
the a b s e n c e o f
most
continuous
man
overw ork ed
agement
on
the
expression
part o f the fixed
in
the
financial
or semi-fixed in
world during re
vestment t r u s t s
cent months seems
serve
to mark
to be “ investment
them off sharply
trust.” It has be
from the general
come quite common
ma n a g e me n t in
to find that any or
vestment trust, which possesses both o f
ganization whose major business is own
By D R . P A U L M . A T K I N S
these factors.
ing securities is referred to as an invest
Engineer-Economist of Ames, Emerich
Co.
The holding company, which is perhaps
ment trust. Even holding companies o f
best exemplified by numerous cases in the
a type with which the public has long
public utility field and certain new cor
been familiar are now frequently dubbed
held until their price is relatively high
porations in the financial field, is also con
“ investment trusts.” All too often even
and funds so invested are required to pur
fused with investment trusts o f the type
the experienced investor is misled and
chase other securities whose prices are
already described, and particularly with
buys a security o f a certain type o f “ in
relatively low. In brief, the general man
vestment trust” when he thinks he is buy
agement investment trust is an invest the general management investment trust.
The similarities, however, are merely
ing another.
ment and not a speculative institution.
superficial. Holding companies are gen
The term “ investment trust” was in
It profits and plans to profit by the in
erally organized to manage, as well as
troduced into our financial vocabulary
crease in the value o f its holdings over
finance, the subsidiaries whose securities
from Great Britain, where it has been
a period o f time, but any trading profit
they hold. In this respect they are en
applied to a certain type o f institution
it may reap is a secondary consideration.
tirely different from properly organized
fo r many years. It is this same type
In this respect it differs fundamentally
investment trusts, which take no part
which is now known in this country by the
from the financial trading company, which
whatever in the management o f any cor
title “ general management investment
is organized fo r this express purpose.
porations whose securities they may hap
trust,” to distinguish it from the “ fixed”
The organization o f both fixed and
and “ semi-fixed investment trusts” which
semi-fixed investment trusts is the same ; pen to own. The holding company usu
ally owns a controlling, if not a majority
have also been developed in the United
they differ slightly in current operation.
interest in its subsidiaries, as otherwise
States. The outstanding characteristics
In both cases a group o f stocks (and
it would not be in a posi
o f a general management
tion to dominate the poli
investment trust a re : a port
G e n e r a l m a n a g e m e n t , f i x e d a n d s e m i -f i x e d i n v e s t m e n t
cies and methods o f the lat
folio made up of a wide va
ter. The well administered
riety o f securities, both
tr u s ts , h o l d i n g , fin a n c e a n d t r a d in g c o m p a n i e s , a r e a ll f r e
general management invest
stocks and bonds, civil as
q u e n t l y r e f e r r e d to as “ i n v e s t m e n t t r u s t s ,” m u c h t o t h e
ment trust, on the other
well as corporate obliga
c o n f u s i o n o f all i n t e r e s t e d . T h i s a r t i c le d e f i n e s c o n c i s e l y
hand, owns but a very small
tions, foreign as well as do
t
h e m a j o r c h a r a c t e r is t ic s o f e a c h a n d t h e d i f f e r e n c e s e x i s t i n g
part o f the securities o f any
mestic, thus providing the
company. Whereas the port
a m o n g t h e m , t h u s a n s w e r in g t h e q u e s t i o n , “ W h a t is an
security which a broad di
folio o f the holding com
versification o f securities
in v e s tm e n t t r u s t ? ”
pany is always in at least
makes possible; a continu
a semi-frozen condition, the
ous management o f this
portfolio o f the general management in
sometimes other securities) are pur
portfolio by men who are thoroughly
vestment trust, i f its affairs have been
chased and certificates o f beneficial in
trained,
experienced,
internationally
properly handled, is always in a highly
terest o f one kind or another are issued
minded, who are possessed o f many con
liquid position. Still another difference
against them.
In some instances the
tacts, both at home and abroad, and who
may be noted in the fact that the holding
stocks are diversified and in other in
are provided with a constant flow o f eco
company usually limits its holdings to a
stances they include only stocks o f com
nomic and business data as a basis fo r
single industry, whereas most investment
panies in a single industry. In the case
their decisions in regard to changes in the
trusts have wide diversification o f hold
o f the fixed trust, once the portfolio is
portfolio o f the trust. It is a cardinal
ings.
made there is no possibility o f any change,
principle o f well managed investment
regardless o f any weakening in the posi
trusts o f this type never to buy on margin
M a r k e d D iffe r e n c e s
tion o f any security held. In order to
or sell short.
HEN the finance company is con
remedy this difficulty in some measure,
Is N o t S p ec u la tiv e
in the case o f the semi-fixed investment
sidered, it may be noted that this
type o f corporation resembles somewhat
F P R O P E R L Y administered, under trust certain substitutions from a limited
both the holding company and the invest
normal conditions their current in list o f eligible securities are permitted if
ment trust. A more detailed analysis re
come from interest and dividends on their they appear to be desirable. In neither
case is there any continuous management
veals that there are marked differences.
investments is adequate at least to pay
o f the portfolio as in the case o f the gen
The major object of the finance company
current operating expenses and interest
eral management investment trust, and
is to finance other companies which are
on debentures and dividends on preferred
not in a position to obtain long term funds
hence this type o f trust does not have
stock o f the investment trust. Securities
the means fo r avoiding loss nor o f gain
directly from the public on favorable
purchased by such investment trusts are
terms. There are often excellent reasons
ing profits which are possessed by the gen
usually bought because their prices are
for this situation. The company financed
eral management investment trust. The
low as compared with the prices o f other
fixed or practically fixed portfolio and
may be one in a sound position but unsecurities at the time. They are usually
T
h e
What Is an
Investment T rust ?
I
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Federal Reserve Bank of St. Louis
W
Northwestern Banker
October 1929
46
known to the public; it may be new and
still in the promotional stage and hence
unseasoned ; it may be one which has been
in difficulties but which has been taken
over by a new management which gives
prospects o f solving its problems.
It
practically always involves participation
and frequently complete control by the fi
nance company in those corporations in
which it is interested. In this respect it
resembles the holding company but differs
from the general management investment
trust. On the other hand, it differs from
the holding company because it may be
interested at any moment in companies
engaged in varying industries, and
further, it rarely intends to retain its
interests in these concerns indefinitely,
but to dispose o f them as soon as they
can be placed in a strong position and
their securities marketed to advantage.
Of course, this means that their port
folios are likely, fo r long periods, to be in
a frozen position. This fact serves still
further to differentiate them from the
general management investment trust.
The financial trading corporation is the
type o f “ investment trust,” as that term
is loosely applied, which has given a basis
fo r the phrase so frequently employed,
that “ investment trusts are only blind
pools.” The trading company, when pos
sessed o f an equitable financial organiza
tion and honestly and capably managed,
is not deserving o f the opprobrium which
is frequently heaped upon it. The trad
ing company is avowedly organized to
buy and sell securities in order to make
a profit by these market operations. It
can buy on margin and sell short— two
things which no sound investment trust
ever does. When run by honest men who
know their business, it probably offers the
person who wishes to speculate in the se
curities markets a much greater oppor
tunity for profit than he would have if
he operated alone. Sometimes its port
folio includes a wide variety o f securi
ties, but more frequently its manager pre
fers, and properly so, to operate in only
a restricted list at any one time. It is
obvious that a strictly trading corporation
is a speculative institution and not an in
vestment institution like the general man
agement investment trust. The principles
upon which these two types o f company
operate are entirely different.
All o f these several classes o f corpora
tion, when free from fraud, have a per
fectly legitimate and desirable function
to perform. The investor, however,
should recognize the differences in objects
sought, methods employed and investment
position o f their securities. He should
particularly be careful to ascertain that
he is buying that type o f security which
he desires when he purchases investment
trust securities.
It should be evident,
also from the above discussion, that prob
ably more than any o f the others, the true
general management investment trust
combines to an unusual extent those char
acteristics which are desired by most in
vestors, whether their holdings are large
or small, Avhether they are conservative
or progressive; namely, a high degree o f
safety, combined with reasonable oppor
tunity fo r appreciation.
Iowa Building
Iowa building increased 138 per cent in
August compared with the same month a
year ago, according to a national survey
just completed by S. W . Straus & Com
pany.
Nine o f the eleven cities reporting made
gains. The outstanding gains were as fol
lows : Cedar Rapids, 432 per cent; Des
Moines, 314 per cent; Burlington, 205
per cent; Council Bluffs, 161 per cent,
and Davenport, 123 per cent.
Fort
Dodge, Keokuk, Mason City and Sioux
City also made gains.
In the comparison fo r August with July
o f this year, Cedar Rapids, Keokuk and
Mason City were the only cities indicating
increases.
A fool always finds one still more foolish
to admire him.— Boileau.
He who feels the need o f big words to
convey his meaning, has but small meaning
to convey.
Northwestern Banker
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Federal Reserve Bank of St. Louis
October 1929
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Federal Reserve Bank of St. Louis
47
T h o u sa n d s
h a v e
i i w
s a fe ly
e
s l e d
)>i i i n o m s
d h r o u g h
Metcalf, Cowgill & Co., Inc.
Equitable B u ild in g
DES MOINES
C HI C A GO
•
SIOUX
CI TY
•
S I O U X FALLS
Northwestern Banker
October 1929
48
Investment Bankers Convention
HE Investment Bankers Association
o f America, which holds its eigh
teenth annual convention October
1 2 th to 18th in Quebec, has arranged a
most attractive program fo r the six days
during which delegates will be in this in
teresting city. In addition to the regular
convention speakers and business sessions,
much stress is being laid on the entertain
ment features.
Describing the beauties and attractions
o f Quebec, the last bulletin o f the I. B. A.
comments as follow s:
“ Quebec is truly a city o f beauty, o f his
T
toric atmosphere, and o f charm. It is
alive with quaint interest. So there is no
end to the little excursions around it that
can be planned and made to fill the after
noons. There are historic spots without
number— the Citadel, the fortified walls,
the St. Louis Gate on Grande Allee, which
will be reproduced on our convention
badge this year, the K ing’s Bastion, and
the Plains. And there are scores o f monu
ments, and quaint little houses, brownish
churches and great cathedrals, grey con
vents, parliament buildings, universities
packed with the art o f ages, the Hotel
Bonds for Reserves
For the investment of certain funds
included in the bank’s secondary
reserves, sound bonds of proper
maturities are highly desirable.
Our folder of October Invest
ment Suggestions for Banks and
Institutions—just published— de
scribes ten representative issues
offering a wide range of yields
and maturity dates. A copy will
be sent on request for
Folder B 20
D e W olf
E stablished 1 88 9
& C o m p a n y , in c .
-
100 W est M onroe St.
C H IC A G O
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Federal Reserve Bank of St. Louis
Dieu, the oldest hospital o f its kind in
America, wharfs where strange craft dock,
modern shops and some almost mediaeval,
mysterious, narrow streets that invite ex
ploration. . . You might go on forever
enumerating the things to be seen in this
charming place that might well be a city
lifted out o f seventeenth century France
and planted on this side o f the Atlantic.
“ F or a longer excursion, there is the
drive to Ste. Anne de Beaupre, a worldfamous shrine where miracles have been
wrought ever since that day in the seven
teenth century when Breton sailors, com
ing up the St. Lawrence, landed at Petit
Cap to raise a chapel to the Good Ste.
Anne in thanksgiving fo r having saved
them from a watery grave. The way is
through a bit o f old Normandy, dotted
with staunch little farmhouses, and along
stretches o f well-cultivated farmland. On
the way is the majestic Montmorency
Falls, tumbling 274 feet into the broad,
blue St. Lawrence.
“ F or those who tire o f exploring, there
are several sporty golf courses to try the
skill o f the best. A s in 1926, the courses
o f the Quebec Golf Club at Bois Chatel
and the Kent Golf Links will be available
for the delegates.
“ Quebec, then, is an ideal spot fo r the
Association’s eighteenth annual conven
tion. And it promises to leave as many
pleasant memories as it did in 1926. It is
picturesque and entertaining, quiet for
those who seek a little rest from the hurry
o f American cities, and lively enough for
those who wish to amuse themselves in
extra-session hours.”
Nominations fo r officers o f the Invest
ment Bankers Association o f America,
which have been announced at the asso
ciation’s office in Chicago, include Trow
bridge Callaway o f Callaway, Fish &
Company, New York, as president, six
well known investment bankers for the
offices o f vice president and thirteen to
fill terms on the board o f governors. Jer
ome J. Hanauer o f Kuhn, Loeb & Com
pany, New York, has been nominated to
succeed himself as vice president, and Alden H. Little o f Chicago, as executive
vice president. The four new vice presi
dents nominated to succeed Joseph R.
Swan o f New York, Frank M. Gordon of
Chicago, Carroll J. Waddell o f Philadel
phia and Joseph L. Seybold o f Minne
apolis are William J. Wardall, Bonbright
& Company, Chicago; Sidney R. Small,
Harris, Small & Company, Detroit ; Henry
T. Ferriss, First National Company, St.
Louis, and W illis K. Clark o f Geo. II.
Burr, Conrad and Broom, Inc., Portland,
Oregon.
Nominations to fill unexpired terms on
the board o f governors are as follow s:
A. A. Greenman, Northwestern Trust
October 1929
In vestm en t Securities
84 E. W isconsin Ave.
M IL W A U K E E
49
H . M. Byllesby and Co.
ê
INCORPORATED *
Underwriters, Wholesalers and Re
tailers o f Investment Securities
— Specialists in Public Utilities
CHICAGO
231 South La Salle Street
B O STO N
M IN N EAPO LIS
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Federal Reserve Bank of St. Louis
PH ILADELPH IA
ST. PAUL
d ir e c t Private W ires
NEW YORK
111 Broadway
PITTSBURGH
M ILW AU K EE
—
PROVIDENCE
DES M O IN ES
DETROIT
K A N SA S C ITY
Chicago - N ew York - Boston - Philadelphia
Byllesby Engineering and Management Corporation
Engineers
—
Managers
fo r
Standard Gas and Electric Company
Standard Power and Light Corporation
The California Oregon Power Company
Duquesne Light Company (Pittsburgh)
Equitable Gas Company (Pittsburgh)
Kentucky West Virginia Gas Company
Louisville Gas and Electric Company
Market Street Railway Co. (San Francisco)
Mountain States Power Company
Northern States Power Company
Oklahoma Gas and Electric Company
Philadelphia Company
Pittsburgh Railways Company
San Diego Cons. Gas and Electric Co.
Shaffer Oil and Refining Company
Southern Colorado Power Company
Wisconsin Public Service Corporation
Wisconsin Valley Electric Company
Northwestern Banker
October 1929
50
Company, St. Paul, to succeed Sidney R.
Small, Detroit, nominated a vice presi
dent; Albert E. Schwabacher, Schwabacher & Company, San Francisco, to
succeed Trowbridge Callaway, New York,
nominated president; Ralph Hornblower,
Hornblower & Weeks, Boston, to succeed
Herbert F. Boynton, New York, resigned.
B oard o f G overnors
HE nominations to positions on the
board o f governors for regular terms
expiring in 1932 are as follows :
George N. Lindsay, Bancamerica-Blair
Corporation, New Y ork; Allan M. Pope,
First National Corporation o f Boston,
New Y ork; Arthur H. Gilbert, Spencer
T
Trask & Company, Chicago; Edward
Hopkinson, Jr., Drexel & Company,
Philadelphia; Ralph Fordon, Backus,
Fordon & Company, Detroit ; George G.
Applegate, George G. Applegate, Pitts
burgh; James H. Daggett, Marshall &
Ilsley Bank, Milwaukee; George W. Rob
ertson, Canal Bank & Trust Company,
New' Orleans; Rogers Caldwell, Caldwell
& Company, Nashville; Meade H. Willis,
Wachovia Bank & Trust Company, W in
ston-Salem, N. C.
Opens Chicago Office
Bank of Athens, Greece, in connection
with the opening o f a representative office
in the First National Bank Building,
Chicago.
Added interest is attached to the an
nouncement in that a prominent Greek
Chicago banker was selected for the post
o f representative.
James A. Poulaki,
who fo r the past ten years has been
affiliated with the foreign banking division
o f the First National Bank o f Chicago,
was appointed as representative.
The object o f the establishment o f the
office, Mr. Poulaki explained, is to de
velop relationships between banks and
Of interest to bankers throughout the
Middle West is the announcement o f the
Invest in Ships That
Bridge the World’s
Best Markets
H IL E our foreign trade is expanding in
W
all directions, E urop e rem ains by far the
largest custom er for A m erican goods.
Last year
E uropean countries bought 4 6 per cent o f the
$ 5 ,1 2 8 ,0 0 0 ,0 0 0
products
exported
fro m
our
shores— nearly as m u ch as the rest o f the w orld
— and this year prom ises an increase o f trade
values.
W ith A m erica n exporters and im porters increas
ing their patronage o f A m erican flag ships and
w ith recent, favorable changes in our shipping
laws, U n ited States L ines, In c., the m ost im p o r
tant un it o f our m erchant m arin e, stands in a
strong p osition.
Its fleet o f eleven fine vessels
serves leading E uropean ports.
U n ited States L ines, In c ., P articipating P re f
erence Stock gives you an opportun ity to invest
in this fleet and share in a grow ing A m erican
business.
T h e stock is offered at a m oderate
price w ith partial paym ents if desired.
Price at the M arket
Listed on New York Curb Exchange and Chicago Stock Exchange
P.W. CHAPMAN8 CO..INC.
115 W . Adams St.
C H IC A G O
Northwestern Banker
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Federal Reserve Bank of St. Louis
^
/ T
October 1929
\
42 Cedar Street
N EW YORK
JAMES A. PO ULAKI
bankers in Chicago and throughout the
whole Middle West. The Bank o f Athens
has one hundred branches throughout the
countries o f Greece, Egypt and an exten
sive net representation throughout the
near Fast and the Balkans.
The Chicago office will also act as a
clearing house in connection with any in
formation desired by manufacturers or
business interests in America relative to
conditions throughout that area.
The resources o f the Bank o f Athens
are Drs. 3,412,224,520.93.
The resignation o f Mr. Poulaki from
the First National Bank was the occasion
of much regret on the part o f the officers
and employes, who presented him with a
beautiful desk set in recognition o f his
services in that institution.
The Bank o f Athens also owns the Bank
o f Athens Trust Company, New' York,
and the Athens Bankers Corporation o f
Boston, Massachusetts.
Greed, like a circle on the water, con
tinues to enlarge itself until it ends in
nothing.
The ladder o f life is full o f splinters,
but we never realize it until we begin to
slide down.
51
1 0 ,0 0 0 Shares
Me Murray Hill Investment Corporation
(A Delaware Corporation)
C o m m o n S to c k
(No Par Value)
CAPITALIZATION
Authorised
Common Stock
(No Par Value)
*20,000 Shares
Present Offering
10,000 Shares
*2,500 shares reserved against the exercise of warrants issued to McMurray Hill & Company
evidencing the right to purchase such stock on or before September 1, 1939,
at $52.50 per share.
The Corporation has only one class of stock and no funded debt.
COMPANY
McMurray Hill Investment Corporation has been organized
under the laws of Delaware to acquire, hold, sell and gener
ally deal in stocks, bonds and securities— to originate and
participate in and act as managers of syndicates and under
writings, and to exercise such other charter powers as its
Board o f Directors may from time to time conclude to exer
cise.
The Corporation in its operation as an investment company,
will cover that field of financing which is not within the
scope o f the activities of the commercial bank and likewise
not ordinarily included in the activities of the investment
banking house.
McMurray Hill Investment Corporation affords investors an
opportunity to participate under competent management in
diversified investments and financial operations which are
not ordinarily available to them as individuals.
PRESENT FINANCIN G
The Corporation will receive $500,000 in cash from the sale
of 10,000 shares of its Common Stock. McMurray Hill &
Company will pay all o f the expenses in connection with the
organization o f the Corporation, and the issuance and dis
tribution o f this stock; the above sum of $500,000 will be
net to the Corporation. Of the 10,000 shares being issued,
in excess o f 6,000 shares have been purchased by McMurray
Hill & Company and individuals whose cooperation will be
o f material value in the operation o f the Corporation. Mc
Murray Hill & Company will retain for their own invest
ment, and not to be reoffered for sale, 2,500 shares.
MANAGEMENT
In consideration of the issuance to it of the warrants re
ferred to above, and the purchase by it o f 2,500 o f the
shares initially issued, and without any other compensation,
McMurray Hill & Company have entered into a five year
management contract with McMurray Hill Investment Cor-
poration. By the terms o f that agreement, which may be
extended for additional periods of five years if neither party
thereto elects to terminate the same, McMurray Hill & Com
pany w ill assume full responsibility for the Corporation’ s
management, subject only to the Board of Directors of the
Corporation. Through its management contract, the Cor
poration has full advantage without expense to the Cor
poration o f the broad contacts, underwriting experience, in
vestment opportunities and statistical information of M c
Murray, Hill & Company.
GENERAL
All stock now issued or authorized is of the same class, and
all shares have identical rights as to voting, dividends and
otherwise.
McMurray Hill & Company may deal freely with the Cor
poration, even though a majority or all o f the Board of
Directors o f the Corporation may consist o f directors or
officers or stockholders or employees o f McMurray Hill &
Company but in any transaction between them McMurray
Hill & Company will accept responsibility for the fairness
o f all transactions.
The management contract may be terminated at any time
vote of the holders of a majority in amount o¥ the shares of
stock o f the Corporation at the time outstanding, but such
termination shall not be effective for at least thirty days
after any meeting at which such vote shall have been ac
complished. The management contract is also subject to
amendment by mutual consent, but the consent o f the Cor
poration must be given by a majority o f its Directors in
cluding a majority of its Directors not affiliated with the
manager.
The above is subject to the complete statements contained
in the Certificate o f Incorporation, a copy o f which may
be obtained from the undersigned upon request.
Complete descriptive circular on request.
Price $52.50 Per Share
This stoclc is offered by us subject to prior sale, when, as, and if issued and received by us subject to the approval of legal
matters by counsel— Messrs. Winston, Strawn <f Shaw, Chicago, and Messrs. Stipp, Perry, Bannister,
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Federal Reserve Bank of St. Louis
McMVrcrcvw Mill & C ompany ’
IN C O R P O R A T E D
IN VESTM EN T SECU R ITIES
LIB ER TY B UILD ING
D E S M O IN E S
TELEPHONE
4-4138
N o rth w estern
B anker
O c to b er
1929
52
A Good Time to Buy Bondi
E V E R A L factors may operate to pro
vide an increased demand fo r conser
vative bonds during the coming
months, acording to the recent Quarterly
Bond Review o f Halsey, Stuart & Com
pany. The review cites the restriction in
the supply o f new issues and the absence
o f heavy inventories fo r the bond dealers
as two factors which should serve to leave
the market in a healthy condition for ex
pansion when it develops. Going on, it
points to several pertinent possibilities for
increased bond market activity, saying:
“ Redemptions, involving many hundred
millions of dollars in bonds o f conserva
tive quality, have operated to reduce the
S
aggregate o f fixed income-bearing securi
ties. The liquidation of bonds by banks
has also proceeded to a point where it
seems reasonable to expect that the volume
o f bonds thrown upon the market from
this source will be materially less than it
has been during the past year and a half.
Again, there remains very substantial and
dependable outlets fo r a large volume of
senior securities among the thousands of
individuals who are little subject to spec
ulative influences ; and with the hundreds
o f institutions who look to bonds as their
proper investment medium, and who con
stitute a powerful influence in the market.
“ Finally, the speculative wave Avhicli
KNIGHT BLA N C H A R D
Ill inois Local
&
CO.
I m p r o v e m e n t Bonds
We own, and offer with
our recommendation:
Carefully purchased local im
provement bonds of Chicago’s
rapidly growing suburbs, where
property values are well estab
lished. Notable among these are:
WESTCHESTER, ILL.
6% Paving Bonds
M a tu r in g 1931
to 1 9 3 8
IN $ 5 0 0 AND $ 1 0 0 0 D E N O M I N A T I O N S
The longer maturities are particu
larly suitable for private investment.
A t 1 0 0 a n d in te r e s t, y i e l d i n g
6%
E x em p t fr o m F ed era l In c o m e T a x
b o th n o r m a l a n d su rta x .
29 So. La Salle St.
N o rth w estern
Banker
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Federal Reserve Bank of St. Louis
C H IC A G O
O cto b er
1929
Randolph 1101
has been sweeping the country— regardless
o f its immediate effect on the bond mar
ket— has had the effect o f familiarizing
thousands o f newcomers with the purchase
o f securities. It seems entirely reasonable
to expect that, as conditions change and
these investors give due regard to safety
o f principal, they will turn in large num
bers to the bond market. This applies
equally to the financing corporations,
which though not now large buyers o f
bonds, no doubt eventually will be if they
settle down to conservative practices.”
R ea l E sta te B o n d s
HE review then goes on to comment
on the various types o f securities in
the bond field. It has the following to say
with regard to real estate bonds:
T
“ Some o f the best values in today’s bond
market are to be fou nd in the field o f
metropolitan real estate bonds. The higher
m oney rates now prevailing have not
merely had the effect o f increasing the
yield to investors (often as much as % o f
1 per cent or 1 p er cent annually) but they
have also served to further im prove the
quality o f such issues. Because funds fo r
new building projects are less plentiful,
only those o f superior quality can now
pass the rigid requirements im posed by
conservative investment bankers. It is a
fact, too, that because o f the great size o f
many o f the new buildings erected in re
cent years and the broad publicity which
they attract, it is not uncommon fo r them
to have a nation-wide acceptance Avith in
vestors that in a form er day extended only
locally. This, together Avith the broader
distributing methods o f houses o f general
issue noAV sponsoring real estate bonds,
provides a degree o f marketability com
parable to other large and w idely dis
tributed corporation issues.
F rom the
standpoint o f yield, security, and market
ability, real estate bonds carefully selected,
now offer greater advantages to the in
vestor than in any recent period.”
Discussing the municipal market, the revieAV says:
“ The current municipal market offers
more liberal income return than has been
obtainable in some time. That the values
offered in this field have been quite gener
ally recognized is indicated by the fact
that there has been a better sustained de
mand for high-class tax-exempt obliga
tions throughout recent months, than for
other bond classifications. There has been
a market preference throughout the spring
and summer fo r bonds o f long maturity,
indicating that buyers have wished to avail
themselves o f the present prevailing at
tractive rates over an extended investment
period. Recently a good demand has also
developed fo r the shorter maturities, al-
53
though the preference still runs to long
term bonds. There has probably been no
mere signal recognition o f the values avail
able in the tax-exempt field than that re
flected in the increasing accumulation of
municipal bonds by life insurance com
panies, during the present years. Avail
able figures indicate that these companies
have increased their purchases o f munici
pals much more rapidly during the pres
ent year than their purchases in the two
other highly favored bond fields.”
Conditions in other bond fields also con
tinue very favorable, according to the re
view. It points out that the sale of public
utility stocks has served to build up the
junior equities of the companies so as to
permit o f improved balance in their capi
tal structures between stocks and bonds.
It points out also the desirability o f in
dustrial bonds from a strictly investment
standpoint. Conditions in the industrial
field are so favorable that conservative in
vestors, seeking safety, together with a
rate o f income return that cannot ordinar
ily be obtained in industrial bonds o f
sound quality, will do well to consider the
values that are now to be found in this
field.
In conclusion, the review again empha
sizes a point which it lias made previously,
and that is that this is a good time to buy
bonds. The review says :
“ Many investment opportunities now
exist for the investor who prefers to fo l
low the path o f conservatism and assured
income— who elects to place his reliance
upon tried and tested safeguards, rather
than upon boundless optimism and uncer
tain developments. To the serious consid
eration o f the latter class are recommended
the many attractive investment values now
available.”
Appointed on Committee
The appointment o f Melvin Alvah Tray
lor, president of the First National Bank
o f Chicago, to serve with Jackson Rey
nolds, president o f the First National
Bank o f New York, as the two American
delegates on the committee which is to
set up the Bank fo r International Settle
ments, is construed as a most interesting
and decisive development which will tend
to solidify the sentiment not only o f the
great middle west, but also o f the south
and southwest, in favor o f the program of
European stabilization embodied in the
Young plan.
Financiers and publicists o f La Saile
street are aware that Mr. Traylor is not
only a banker o f the first rank, but he is
also from birth and breeding an authentic
representative o f the dominating mental
ity of the great American interior. His
career in many respects is a typical al
though greatly enlarged life history o f the
outstanding young men o f his generation
and rearing. He was born in Breeding,
Kentucky, on October 21, 1878.
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Federal Reserve Bank of St. Louis
Kentucky is a “ border state” where all
varieties o f southern and mid-western folk
ways and traditions meet and mingle. The
region in which Mr. Traylor was born was
the original American frontier west of
the Appalachian Mountains, and was set
tled by those who have been called the
vanguard o f American civilization by
Roosevelt, Gilmore and other writers.
This region furnished the great majority
o f the pioneers who later founded states
in the lower Mississippi Valley and the
great southwest and a very large part of
the original settlers o f the Pacific coast
and the mining states of the Rocky Moun
tain region.
Undoubtedly, if Mr. Traylor ever ran
for political office, his campaign manager
would obviously draw the parallel o f his
early life with those of Abraham Lincoln,
Andrew Jackson and the other great fig
ures who illustrate the influence of the
west upon the history o f this country.
Hold Golf Tournament
The First Wisconsin Group o f finan
cial institutions, Milwaukee, Wisconsin,
held a g olf tournament at Brown Detr
course Sunday, September 15th.
Over
seventy-five officers and employes played.
The play was medal and contestants were
divided into four flights according to
scores. Prizes were offered in each flight
fo r first, second and third low gross. A r
rangements were in charge o f Marvin
Lemkuhl and Richard Kornhauser of the
First Wisconsin National Bank.
Iowa Public Service
Company
First Mortgage Gold Bonds
5Vz% Series due 1959
Iowa Public Service Company supplies electric
light and power to more than 200 cities and towns
in western and north central Iowa. It also fur
nishes manufactured gas, water and steam heat to
certain of these localities.
This section of Iowa, one of the largest agri
cultural communities in the world, includes a
population of approximately 500,000.
Net earnings for the 12 months ended July 31,
1929, are more than 2.63 times annual interest
requirements.
Over 8 0 % of the gross earnings for this period
was derived from‘ the sale of electric light and
power 1 4 .6 % from the sale of manufactured gas
and the balance from water, steam heat and mis
cellaneous income.
Price and descriptive circular on request.
A.C.ALLYNandCOMPANY
IN C O R P O R A T E D
In v e stm e n t Securities
67 West Monroe Street, Chicago
New York
Milwaukee
Boston
St. Louis
Philadelphia
Minneapolis
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Detroit
San Francisco
B anker
O c to b er
Í9 2 9
54
McMurray Hill Forms Investment Trust
was made last
month by McMurray Hill & Com
pany, of Des Moines, one o f Iowa’s
leading investment institutions, which in
the past few years has built for itself an
enviable record both in the underwriting
and distributing o f investment securities,
o f an investment corporation with an in
itial capital o f $500,000.00. This corpora
tion is to be known as the McMurray Hill
Investment Corporation, and was offered
to the public at $52.50 per share. The en
tire amount o f the issue was readily over
A
nnouncem ent
subscribed— this fact being in itself an
indication not only o f the interest o f the
public in this type of investments but also
a reflection o f the confidence reposed in
this company by a large clientele.
Under its charter powers the McMurray
Hill Investment Corporation may acquire,
hold, sell, and generally deal in stocks,
bonds and securities, and originate and
participate in syndicates and underwrit
ings.
McMurray Hill Investment Corporation
has entered into a five year managerial
contract with McMurray Hill & Company.
The agreement may, o f course, be ex
tended fo r an additional period o f years,
and gives to the new investment corpora
tion without expense the experience,
ability and contacts o f the McMurray Hill
& Company organization.
The purpose o f the McMurray Hill In
vestment Corporation, which is new to this
particular territory, is, as explained by
Luther Hill, president o f McMurray Hill
& Company, as follows :
“ It will cover that field o f financing
which is not within the scope o f the activi
ties o f the commercial bank and likewise
not ordinarily included in the activities of
BASIC INDUSTRY SHARES
Issued by
THE EQUITABLE TRUST COMPANY
OF NEW YORK
Trustee
Common Stocks of
these 30 Great Comp a n i e s Underlie
BASIC
INDUS
TR Y SHARES
N o s u b s t i tu ti o n
m ay be m ade
fro m
th is lis t
N one single investment Basic Industry shares
provide an investment in the cream of all
American industrial activity.
I
Underlying Basic Industry Shares are the common
stocks of the 30 great corporations listed at the
left. These 30 companies derive earnings from 779
additional subsidiary or affiliated companies.
Engaged in every conceivable line of business, this
group operates not only in the United States, but
in 35 foreign countries as well.
Pennsylvania E. R.
Louisville & Nash.
New York Central
Illinois Central
Union Pacific
Southern Pacific
Southern Railway
Northern Pacific
Stand. Oil of N. J.
Stand. Oil of N. Y.
Stand. Oil of Ind.
Stand. Oil of Cal.
Vacuum Oil Co.
Amer. Tel. & Tel.
Nat’l Biscuit
Westinghouse
Pullman
General Elec.
West. Union
U. S. Steel
Amer. Tobacco
Ingersoll-Rand
Int. Harvester
Otis Elevator
du Pont
Timken Roll.
Amer. Radiator
United Shoe
Woolworth
American Can
The combined assets of these 30 companies exceed
20 billion dollars. Surplus is more than 4 1/ 2 bil
lion dollars. Net earnings last year, available for
common stockholders, was 875 million dollars.
Holders of Basic Industry Shares share in the earn
ings and growth of this entire group.
M ore
d ea ler s
th a n
in
200
40
banks
s ta te s
and
a re
in v estm en t
re co m m e n d in g
B a s ic I n d u s t r y S h a r es — f o r s a f e t y o f p r i n
c ip a l,
gen erou s
y ie ld ,
a p p r e c ia t i o n ,
and
r e a d y m a r k e t a b i li t y . I n q u i r i e s a r e i n v it e d .
Smith, Burris
C ompany
S y n d ic a t e M a n a g e r s — C e n tr a l U n i t e d S ta tes
120 S o u th
La
S a lle S t r e e t ,
C H IC A G O
L L O Y D PH ILLIPS fe? C O M P A N Y , IN C .
Wholesale Representatives for Smith, Burris & Co.
Union National Bank Bldg., F R E M O N T , N E B .
N o rth w estern
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Federal Reserve Bank of St. Louis
O c to b er
1929
DONALD J. McMURRAY
the investment banking house. Tlu-re are
many concerns which in their financing
cannot go to the commercial bank and be
cause o f small size or other reasons cannot
successfully do public financing.
Yet
such concerns when properly managed
offer attractive returns. We expect to
make certain investments of this character
in addition to dealing in listed securities
and participating in underwriting syndi
cates.”
McMurray Hill & Company will retain
fo r its own investment 2500 shares o f the
McMurray Hill Investment Corporation.
McMurray Hill & Company have dur
ing the current year originated a number
o f popular issues, among those being
Knapp-Monareh Co., common stock;
Knapp-Monarch Co., preferred stock;
Viking Pump Co., common stock; Viking
Pump Co., preferred stock ; Katz Drug
55
Co., common stock; Katz Drug Co., pre
ferred stock.
They have not only distributed a large
amount o f these securities in Des Moines,
but through their organization and
through branches which they are and have
been establishing throughout the state
have gained a wider distribution.
Branches up to this time have been
established in Mason City, Fort Dodge,
Charles City, Marshalltown, Newton and
Oskaloosa. In charge o f these branches
are the following individuals: Harold M.
Finch, Newton; Chas. A. Stoddard, Oska
loosa; D. Miller White, Marshalltown;
Orin Thatcher, Fort Dodge; Marvin W iegman, Mason City, and Russell Olds,
Charles City.
The home office organization o f McMurray Hill and Company is comprised
o f the follow ing: Luther L. Hill, D. J.
creased efficiency. He has been particu
larly successful in research and surveys,
and has inspired much o f the newspaper
and magazine advertising that has been
characteristic o f the south in recent years.
She Was Suspicious
“ Does your wife open your letters?”
“ No, not the business letters; only
those marked ‘private’ .”
Don’t worry yourself, whistle— and
worry the other fellow.
Heads New Y o rk Office
John Clark Sims, well known as a spe
cialist in bank, trust company, and savings
bank advertising, now heads the financial
advertising department o f Critchfield &
Company in their New York office. This
department is a new one recently installed
by Critchfield & Company.
Religion is life, philosophy is thought;
religion looks up, friendship looks in.
We need both thought and life, and we
need that the two shall be in harmony.—
Clarke.
The Symptoms
Husband (after first round o f the
holiday): Absolutely putrid c o u r s e .
Wish we’d never come to this rotten hole.
W ife : How many did you lose by,
dear ?
It is easy in the world to live after the
world’s opinions; it is easy in solitude to
live after our own; but the Great Man
is he who in the midst o f the crowd keeps
with perfect sweetness the independence
o f solitude.— Emerson.
A NATIONAL CITY
MAN CAN HELP YOU
...w hen you want
to broaden your
investment view
LUTHER L. H ILL
McMurray, W . E. Matthews, Victor J.
Silliman, S. M. Lorenz, Fred M. Lorenz,
C. S. Mugge, Fairburn Kurtz, J. Earl
Hammer, Henry L. Danenbaum and
Harry Bradley.
With Central Hanover
William C. Bennett has resigned as vice
jiresident o f Edwin Bird Wilson, Inc.,
financial advertising agents, to become
associated with the Central Hanover Bank
and Trust Company o f New York. Mr.
Bennett fo r the past twelve years has been
closely identified with the publicity work
o f southern banks and has specialized in
trust work.
In addition to his activities in publicity,
Mr. Bennett has made a close study o f
banking methods and has worked out
many novel and constructive plans fo r the
development o f new' business and in
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Federal Reserve Bank of St. Louis
The ramifications of modern investment are
so extensive these days that you cannot hope
to keep always abreast of changing conditions.
Nor do you have to. Just put your investment
inquiries to The National City Company’ s
nearest office.— one of our experienced ser
vice men will be glad to talk with you. Our
116 years of financial experience, coupled
with world-wide investment connections, give
us an investment viewpoint which you will
find valuable in broadening your own.
T h e N atio n al C ity C om pan y
National City Bank Building, New York
Offices in more than 50 leading cities throughout the world
BONDS
'
SHORT
TERM
NOTES
*
N o rth w estern
ACCEPTANCES
B anker
O c to b er
1929
56
Chicago Investment
BUCKET SHOP OPERATORS who
used high pressure methods o f selling se
curities without delivering the stock, had
a bad inning in the Chicago courts last
month. More than a dozen houses, some
o f them established fo r a number o f years
on La Salle street, were closed up and the
officers hailed before the authorities, a
number now awaiting jail sentences. It
was estimated that investors lost approxi
mately $500,000. While a majority of the
investors were women and private citizens
o f the Chicago district, in some instances
the houses also had established connec
tions with banks in the so-called Chicago
WIL L
OUR
M A I L E D
BE
By W I L L I A M H . M A A S
Vice President,
The Northwestern Banker
territory. W e wish to take this occasion
to warn country bankers against this type
o f security house. The Chicago office o f
T h e N or th w ester n B a n k e r , Room 1221,
First National Bank Building, Chicago,
will be glad to cooperate with any out-oftown bank desiring advance information
on any Chicago investment organization.
All that is necessary will be to write or
wire us giving the name and address of
the firm in question.
OF FE RIN G
LIST
R E G U L A R L Y
U P O N
R E Q U E S T
A National Standard
for Short Term Investment
G M A C obligations have been purchased by
a clientele o f nearly 8,000 banks, insurance
companies, institutions and individuals, the
country over. Their rating, as a national stands
ard for short term investment, reflects estab
lished public confidence in G M A C prestige.
offered at current discount rates
G
A
eneral
cceptan ce
OFFICES
IN
M otors
C o r p o r a t io n
P R I N CI P A L
CITIES
Executive Office - Broadway at 57th Street * N[ew Yor\ City
C A P I T A L ,
N o rth w estern
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Federal Reserve Bank of St. Louis
SURPLUS
O V E R
O c to b er
A N D
U N D I V I D E D
$ 6 6 , 0 0 0 , 0 0 0
Î929
PROFITS
MORE PUBLIC U TIL IT IE S finan
cing is now being done in Chicago than in
any other financial market on earth. This
statement is being made freely by La Salle
street statisticians and they produce fig
ures to prove their case.
One expert has estimated that 35 per
cent o f the nation’s public utilities financ
ing is now done in Chicago. New York,
o f course, is a close second with Boston,
Philadelphia, Minneapolis-St. Paul, St.
Louis, San Francisco, Los Angeles, Den
ver and Spokane appearing in the order
named.
A check-up o f listings on the Chicago
Stock Exchange board one day recently
revealed eighty-four public utilities there
with 115 stocks listed. These totaled 73,835,696 shares with a market value of
$8,246,302,000.
Recent developments appear to bear out
the statement that Chicago is recognized
as the primary market fo r this class of
financing. For example, only the other
day Cities Service, chief rival to the Insull
utilities chain for first place in the utilities
world, listed 27,000,000 shares on the Chi
cago Stock Exchange.
S E V E R A L FACTORS may operate to
provide an increased demand for conserv
ative bonds during the coming months,
according to the Quarterly Bond Review
o f Halsey Stuart & Company, which was
published a few days ago. The review
cites the restriction in the supply o f new
issues and the absence o f heavy inventories
for the bond dealers as two factors which
should serve to leave the market in a
healthy condition fo r expansion when it
develops. Going on, it points to several
pertinent possibilities fo r increased bond
market activity, saying:
“ Redemptions, involving many hundred
millions o f dollars in bonds o f conserva
tive quality, have operated to reduce the
aggregate o f fixed income-bearing securi
ties. The liquidation o f bonds by banks
has also proceeded to a point where it
seems reasonable to expect that the vol
ume o f bonds thrown upon the market
from this source will be materially less
than it has been during the past year and
a half. Again, there remains very sub
stantial and dependable outlets for a large
volume o f senior securities among the
thousands o f individuals who are little
subject to speculative influences; and with
the hundreds o f institutions who look to
bonds as their proper investment medium,
and who constitute a powerful influence in
the market.
“ Finally, the speculative wave which has
been sweeping the country— regardless of
its immediate effect on the bond market—
57
has had the effect o f familiarizing thou
sands of newcomers with the purchase of
securities. It seems entirely reasonable to
expect that, as conditions change and these
investors give due regard to safety o f prin
cipal, they will turn in large numbers to
the bond market. This applies equally to
the financing corporations, which though
not now large buyers o f bonds, no doubt
eventually will be if they settle down to
conservative practices.”
JOHN F. M OFFETT, formerly in the
bond business, has a most optimistic view
o f the future o f investment trusts o f the
fixed type and recently became associated
with Smith Burris & Company o f Chicago
world and includes a population o f ap
proximately 500,000. With a bumper corn
crop in the making in Iowa, all reports
indicate a healthy fall and winter business
from that section.
More and more Chicago investment
houses are growing enthusiastic about
business in the tall corn state. H. A.
Boyle, sales manager o f Guibord-White
& Company, Chicago, is particularly opti
mistic concerning Iowa and recently
opened offices in Cedar Rapids and Des
Moines. The Des Moines territory will be
in charge o f Walter Escher, former Jo\va
banker.
THE F IR S T ILLINO IS COM PANY
has recently been merged with the eastern
firm o f W . E. Willard & Company, Inc.
Business for the middle west will continue
to be carried on through the First Illinois
Company’s offices at 208 So. La Salle
Street, Chicago.
THE M AGIC
TERM “ investment
trust” in modern financing and the sudden
waive o f popularity fo r securities o f this
name has led the general investing public
into many vital misundertakings, Dr. Paul
M. Atkins, economist o f Ames, Emerich &
Company, states in his supplement to
their latest “ Current Economic Briefs.”
Confusion in the minds o f many inves
tors, Dr. Atkins says, is caused by the
common mistake o f grouping several fun
damentally different types of investment
corporations under one general term
when, in fact, their purposes differ in es
sential respects and have only a super
ficial resemblance to the general manage-
Specialists
JOHN F. MOFFETT
as sales manager. This firm are syndicate
managers in the middle west for Fixed
Trust Shares, Basic Industries Shares and
Corporate Trust Shares. Mr. Moffett was
formerly associated with the firm of Hambleton & Company.
Earl Moon, recently with the Chicago
office of the Equitable Trust Company, re
signed to become manager o f the Trade
Office o f White-Weld & Company.
in the distribution and un
derwriting of Corporation
and Municipal Bonds and
junior corporate equities.
Iowa R epresentative
M A U R IC E F . LEAHY
M a n a g e r o f T r a d in g S e r v i c e D e p a r t m e n t
T H O M A S F. FORD
A.
C. ALLY N & COM PANY are bring
ing out an issue of $1,300,000, Iowa Public
Service Company, first mortgage gold
bonds, 5x/2 per cent series due 1959. It
is expected that this issue will be a popu
lar one, due to the business and territory
o f the Iowa Public Service Company. It
supplies electric light and power in more
than 200 cities and towns in the western
and north central Iowa, including Water
loo, Charles City, Cherokee and Le Mars.
Manufactured gas is furnished in Water
loo, Cedar Falls, Hampton, Waverly and
Eagle Grove and the company also carries
on a small water and steam heat business.
The territory served by the company is one
o f the richest agricultural sections in the
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Federal Reserve Bank of St. Louis
B R O K AW
AND CO M PAN Y
105 South La Salle Street
CHICAGO
N o rth w estern
B anker
O c to b er
1929
58
With the retirement of Mr. David O. True
the name of
T rue Securities Co.
has been changed to
M a t t h e w s &> L e w is Co.
T h is change does n ot effect
any o f the policies o f our
organization w hich have
enabled us to satisfactorily
serve our clients.
The
p erson n el
rem ain s
intact w ith the above e x
cep tion.
W e appreciate the o p p o r
tunities you have g iven us
to serve you and h o p e w e
s h a ll
be
p r iv ile g e d
to
continue in this capacity.
f
M a t t h e w s &> L e w i s C o .
Investment Securities
2 3 1 South La Salle Street
Telephone Central 65 56
C H IC A G O
O R M A N LEWIS
FRED C. M A T T H E W S
FINLEY P. D U N N E
P resid en t
V ic e-P re sid en t
S ecreta ry & T rea su rer
N o rth w estern
B anker
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Federal Reserve Bank of St. Louis
O cto b er
1929
rnent investment trust, which has become
very popular in recent years in this coun
try.
Criticisms which have been directed
against ‘‘investment trusts,” especially
some of those whose operations are o f a
speculative character, in the light o f this
discussion, appear to be unfounded. They
are generally the result o f failure to dis
criminate between the functions each or
ganization is created to perform.
ANNOUNCEMENT has been made of
the formation o f the Illinois Securities
Company, investment bankers, underwrit
ers and distributors to individuals, banks,
trust companies, estates and insurance
companies. Executive offices are at 105
West Monroe Street. David E. Shanahan
is chairman o f the board and Max Gold
berg is president o f the company.
IN VESTM ENT SECU R ITIES COR
PORATIO N , 120 So. La Salle Street, has
announced that Mr. Henri L. Couteron
has become affiliated with the corporation.
JOH N A. LOGAN, formerly affiliated
with Blair & Company as sales manager,
has been appointed city sales manager for
Ames, Emerich & Company.
Report Increase in Profits
Total net profits o f 749 companies in
thirty-three business groups amounted to
$1,875,287,717 in the first six months of
1929, compared with $1,448,899,219 for
the same companies in the corresponding
period o f 1928, an aggregate rise o f 29.43
per cent, according to a compilation pre
pared from published financial statements
by Ernst & Ernst, accountants. The year
1929, from all indications, the survey
states, bids fair to establish a new mark
in the amount o f profits which will be re
corded by business when the year draws
to a close.
“ Business lines showing the highest per
centages o f increase fo r the first six
months o f 1929 include the tire and rubber,
iron and steel, copper, oil, amusement,
railroad equipment, chain grocery, metal
product and miscellaneous mining and
smelting groups. A number o f industries
show gains approaching 50 per cent.
“ The automobile group, which is the
largest o f those included in the summary
from the standpoint o f volume o f profits,
excepting railroads, shows one o f the
smallest percentages of gain. The Ford
Motor Company is not included in the
tabulation, and the addition o f it would
doubtless change materially the picture as
to the comparison o f the automobile in
dustry with others.
“ Three o f the thirty-three groups show
a decrease in profits in the first half o f
1929 compared with six months o f 1928.
“ It will be recalled that the downward
trend o f 1927 was reversed in 1928 so
59
that the percentage o f gain in comparative
profits was steadily rising throughout the
latter year from a slight decrease in the
first quarter to an increase o f around 7
per cent for the first half, and 20 per cent
fo r the full year, for a group o f indus
trials. Including public utilities and rail
roads, there was an increase o f 17 per cent
fo r the year. While these percentages
are necessarily affected to an extent by the
declining profit trend through 1927, they
do reflect the increasing trend through
1928, as confirmed by the fact that cor
porate profits fo r the year 1928 were 11
per cent or more greater than in 1926.
“ Because o f this upward trend through
the year 1928 it is hardly to be expected
that the results fo r the full year of 1929,
when available, will show' the same marked
increase over 1928 that is reflected in the
present comparison o f the six months’
figures. It is interesting to note in this
connection, however, that whereas the first
quarter o f 1929 showed an increase o f 28.7
per cent in the profits reported by 431
companies, compared with the correspond
ing period in 1928, the six months o f the
current year show an increase o f 29.4 per
cent fo r a group o f 749 companies. In
the industrial group, the percentage o f
gain declined from 40 per cent to 37 per
cent, making no allowance fo r difference
in the compositions o f the groups, but the
gain by railroads increased from 17.3 per
cent to 21.9 per cent.
“ Another factor which must be borne in
mind in considering any comparison such
as this, is that o f expansion on the part of
many industries, with the inclusion in the
current year’s profits o f earnings from
added units. These profits frequently are
not compensated fo r in the figures o f the
previous year because o f lack o f reports
on the businesses absorbed, covering the
periods prior to their acquisition by the
present corporations. This has a tendency
to exaggerate the amount o f difference be
tween the two periods. Consequently the
true index o f gain over the preceding year
is probably somewhat less than the 29.43
per cent shown as the combined increase
for the 749 companies tabulated.”
New Sales Director
Orville B. Price who has been in charge
o f Kansas fo r Robert S. Strauss & Com
pany has been appointed director o f sales
o f that firm. Mr. Price is a native of
Indiana and moved with his parents to
IToldredge, Nebraska, at the age o f one
where he was raised, as his father was a
banker in that town fo r a great many
years.
Mr. Price first entered the brokerage
business in Denver, Colorado, over thirty
years as a telegraph operator and has
been in the investment security business
ever since. P or eighteen years, Mr. Price
was a member o f the Pittsburgh Stock E x
change with offices in that city, and is well
known in investment banking.
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Federal Reserve Bank of St. Louis
It Is Satisfying
-— to know that the investment organization
with which you deal has both the facilities and
Lhe disposition to give constructive assistance
and advice when questions of investment arise.
Priester, Quail & Cundy, through its officers
and representatives, is prepared by broad ex
perience to give you expert information regard
ing investments, and to help you solve the
problem of the proper disposal of your surplus
funds.
Our assistance is yours without obligation.
QUAIL €
C llV D y
w
INVESTMENT SECURITIES
American Bank Building
DAVENPORT, IOWA
N o rth w estern
B anker
O c to b er
1929
60
Safety and Profit in the Bank's
Investment Account
(Continued from page 32)
T k e S ta n d a rd o f
S a f e t y —•
Unless a bond issue measures up to these ten
standards of safety it cannot be a Robert S. Strauss
& Co. issue:
1 Ownership — The ownership o f the land must be
firmly established, and a Title Guaranty Co. o f repute
must guarantee that the title is clear o f all claims.
2 Owner— The owner or owners who are also the
borrowers must be persons o f good character and
financial responsibility.
3 Location— The location must be studied carefully
by experts to determine present and future value.
4 Building — The building to improve the land must
be an income producer and must be adaptable to the
location. If a construction loan, a completion bond
guaranteeing: l — completion o f the building; 2— that
the building w ill be free o f all mechanics’ liens; 3—complete in accordance with plans and specifications
and completion date, must be furnished by a reputable
Fidelity and Guarantee Company.
5 Appraisal— Well-known, competent independent
appraisers must appraise the property and building to
be erected and no first mortgage o f over 60% o f a fair
valuation can be made.
6 Trustee— The Trustee must be a responsible trust
company who w ill certify to the authenticity o f each
bond
7 A Serial Amortization— The bonds must be in
“ serial maturities” ; thereby increasing the proportion of
security for the investor year by year as the mortgage is
gradually reduced.
8 Income— The net income from the property must
be in excess o f the largest annual interest and retirement
requirement.
9 Sinking Fund— The borrower must pay the
trustee monthly one-twelfth o f the total annual fixed
charges o f the issue.
10 Insurance— The property securing a bond issue
must be thoroughly protected by insurance from
destruction by the elements.
Current list of sound securities yield
ing 6 % — 6 % % sent upon request
ttOBEM f S .SNCÓt
RAUS S & C o .
RPORATE F
d
150 Broadway
105 W est M onroe St.
C H IC A G O
NEW Y
RK
ÏO
VJKK
S
Offices in O ther Cities
ROBERT S. STRAUSS & CO .
105 W . Monroe St., Chicago, 111.
<JMail
Coup
Gentlem en: Please send me without obligation
full investment information and current offerings.
N a m e .........................................................................................
C ity .
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Federal Reserve Bank of St. Louis
O cto b er
and preferred stocks is the question o f
convertibility into stocks, or attached war
rants permitting the purchase o f stocks
under certain conditions. It is often pos
sible to get much safety in such securities
with the opportunity for considerable gain
in values should the company prosper.
There have been some very striking illus
trations o f this in recent years. However,
this question calls for careful study, wise
advice, and ability to act promptly when
such issues are brought out, or conditions
indicate that already issued convertible
bonds have possibilities o f a large rise
ahead o f them.
Another point with which everyone
handling an investment account should be
familiar is the laws o f the state under
which the bank is chartered. Ignorance
o f the laws and the types o f securities
which the bank may hold often prevents
profitable investment. A banker was o f
fered at par a 7 per cent non-callable pre
ferred stock o f one o f the largest steel
companies. The banker at first declined
because he said the state laws did not per
mit the purchase o f stocks, and he was also
ignorant that dividends were exempt from
income tax when stock was held by a cor
poration. Upon having these points made
clear to him, the banker purchased a block
o f the stock. The result is that the bank
has had a 7 per cent tax free income for
several years and an appreciation o f over
20 per cent in principal.
An understanding o f the general trend
o f interest rates over periods o f time is
also almost essential to profitable invest
ment. I f the trend is towards higher in
terest rates or is being sustained at a high
level, the bank should confine its invest
ment purchases to short time maturities,
and should endeavor to keep liquid against
the time fo r buying investments on a more
liberal scale. When the trend has turned
toward lower interest rates the bank
should then buy as liberally as possible of
long-time investment securities, not only
for the continued high rate o f interest, but
fo r the appreciation in the prices o f the
securities. It is, o f course, impossible,
generally speaking, to tell the exact time
when the change takes place in the long
period trends, but much can be learned by
careful study o f the data which is now so
liberally furnished by statistical organiza
tions and publications, together with the
advice o f large banking institutions.
1929
. State.
E lim in a tin g L o sses
NE o f the best ways to increase earn
ings from the investment account is
to eliminate losses as far as possible. One
way to do this, in addition to exercising
the greatest care in purchasing, is to fol
low up by having a periodical review and
appraisal of the list. This should be done
O
61
at least quarterly and markets should be
cheeked at least once a week. In this way
sudden fluctuations in any issues will be
noticed and the reason should be learned.
It was found that many banks were very
careless in their method o f scheduling in
vestments. It is suggested that a schedule
be made up, divided into groups (railroad,
utility, industrial, etc.), showing the date
of purchase, name of the issue, par amount
held, the unit and total cost, yield at cost,
market price, and amount and yield at
market. Each o f these groups should be
totaled and a recapitulation o f the entire
list made, showing total par, amount, cost
and market o f each group. The total of
these columns will give the total par
amount held, total cost, and total market
value o f the entire list.
Reviews may be made o f the list by an
unbiased party to whom a fee is paid, and
who receives no orders. There are several
reliable statistical organizations whose
services are available to clients at all
times. Their opinions are not infallible,
but are based on facts, and their records
are kept as nearly up to date as possible.
Another means o f increasing the earn
ings from the investment account is to
keep the account active and make ex
changes whenever advantageous. Many
issues, either because o f sinking fund op
erations, buying by the company to use
surplus funds, or for other reasons, will
be selling out o f line with equally desirable
issues. Advantage should be taken o f
situations of this kind to make exchanges.
It is best to coniine exchanges to securi
ties in the same class. A high grade rail
road or utility bond should not be ex
changed for a medium grade industrial.
Unless this rule is followed the list will
soon become unbalanced and the percent
ages o f diversification far from the orig
inal schedule. The practice of making ex
changes may be carried too far in the e f
fort to show large earnings. Then a down
ward turn in the market would quickly
show a loss in the entire list, resulting in
necessary write-downs and a charge
against the surplus or undivided profits
accounts. Issues selling near or above the
call price, which prevents further appre
ciation, should be exchanged for others
which have possibilities o f appreciation.
An institution should be as ready to take
a loss as a profit, if the holding is deemed
undesirable.
Keeping funds fully employed is an
other means of increasing earnings from
securities.
Smaller banks frequently
carry excess uninvested funds and no
thought is given to employing them until
a bond salesman offers a new issue which
may not be ready fo r delivery for some
time. The bank would be better off to
purchase an older issue and immediately
employ its funds at the coupon rate in
stead o f waiting for the new issue and re
ceiving the rate allowed on balances by a
correspondent bank.
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Federal Reserve Bank of St. Louis
In this connection it should be noted by
the officials o f the smaller banks that there
is a great deal o f very valuable literature
on the subject of investments and that the
savings bank division o f the American
Bankers Association will always be glad
to furnish a list o f such literature.
A
Serious for Him
Doctor: Your wife suffers from in
somnia ? Are there any serious conse
quences ?
V isitor: Yes. When I come home
late she is always awake.
nnouncement
We are pleased to announce the opening of a
DES MOINES OFFICE
at
425 L iberty B uilding
T elephone 3-2616
under
the
M r.
G
u ib o r d
,
W
management
V.
a l t e r
W
E
sch er
6?
h it e
of
C
o m p a n y
Incorporated
C H IC A G O
ROCH ESTER
NEW YORK
K AN SAS C IT Y
M I D -W E S T S T A T E S U TILITIES C O .
6% Convertible Gold Notes
Due July 15, 1931
C o n v e r s io n o f th e s e n o te s in to p a r t ic ip a t in g C la s s A s t o c k c a r r ie s v a lu a b le s t o c k p u r c h a s e
r ig h ts, w h ic h i f e x e r c is e d , g iv e s the in v e s t o r a re tu rn o f 10% as d iv id e n d s are p a id .
Complete details on request
E. H . O T T M A N & C O M P A N Y , In c .
Investment Securities
B a n k e rs B u ild in g , C h ic a g o
z. in u m i.... ............................................ .
W e recommend the purchase of
Tri-Utilities Corporation
P ow er—
G a s— W a ter
Five Per Cent Convertible G old Debentures
Series o f 1979
These debentures are convertible at any time up to December
31, 1931 into 17 shares of Common Stock for each $1000
Debenture. Common Stock is actively traded in on the Chicago
Stock Exchange and New York Curb Exchange.
Price 99 and accrued interest, to yield over 5.05%
G. 1 .O
h r s t r o m
»NCORRORAT£D
E
I
M in n e ap olis
8
C o.
4 4 W a ll Street
N ew York
231 S. La Salle St.
Chicago
D etroit
San Francisco
S t . L ou is
Philadelphia
Los A n g e le s
E
Boston
Northwestern Banker
October 1929
62
O ffers N ew Investm ent Trust
NE o f the outstanding financial de
velopments o f the past month con
sisted o f the announcement by
Metcalf, Cowgill & Co., Inc., o f Des
O
Moines and Chicago, that this firm has
offered to the investing public a new issue
o f 10,000 shares o f stock in the Investment
Administration Corporation. The stock is
priced at $50 per share plus accrued divi
dends, and has been well received by in
vestors.
The Investment Administration Corpo
ration, o f which Metcalf, Cowgill & Co.,
Inc., were the organizers, was organized
under the laws o f Delaware in October,
1928, fo r the purpose o f buying, selling
T
J. H E steadily growing bank clientele of this
house is the clearest measure of the securities it
sells. W e know the investment requirements of
Iowa banks through ten years of personal service
to them— and every security bought by BallardHassett is acquired with these special requirements
clearly in mind. You can find what you want on
a Ballard-Hassett list.
L a test offerings o n requ est
BALLARD HAS SETT CO.
-
In v e s t m e n t S e c u r it ie s
1114-1120 C o m m o n w e a lt h B ld g .
D E S M O IN E S
The reason' o r . success1 in ,jiny
= ^ = = :^ ^ = =
en ce
to
sound
b u s in e s s is th e a d h e r
b u s in e s s
p r a c t ic e
and
c a r e fu l m a n a g e m e n t .
S u c h h a s b e e n th e u n d e r ly in g id e a o f
th e S ta n le y S e c u r it ie s C o r p o r a t io n in its
m a n y y e a rs o f s u c c e s s fu l
c o o p e r a t io n
w it h b a n k e r s a n d fa r m e r s o f I o w a , u n
til n o w it is o u t s t a n d in g a m o n g th e i n
DONALD METCALF
and dealing in and holding securities of
any kind, subject to the discretion o f its
board o f directors. On the completion of
the present financing plan Metcalf, Cow
gill & Co., Inc., will have invested in the
capital stocks o f this corporation more
than forty per cent as much as all other
stockholders combined. The company al
ready has an excellent earnings record,
with net earnings fo r the first year of
operation in excess o f $56,000, which was
the annual rate o f more than 33 per cent
on the capital employed. As o f August
31, 1929 the corporation’s pro forma bal-
v e s t m e n t b a n k in g o r g a n iz a t io n s in th is
g re a t S ta te.
D IV ID E N D N O T IC E
Robert S. Strauss & Co.
Cum ulative 7 % Preferred
In v e stm e n t B ankers
I. G. STA N LE Y, President
CEDAR RAPIDS
Des M oines Branch:
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
400 Royal Union Life Building
October 1929
T h e r e g u la r q u a r t e r ly d iv id e n d o f 13A %
h a s b e e n d e c la r e d o n the P r e fe r r e d sh ares
o f R o b e r t S. S tra u s s & C o ., an I ll i n o i s
c o r p o r a t io n w it h p r in c ip a l o ffice in C h i
cago.
T h e q u a r t e r ly d iv id e n d o f l 3/i % is p a y
a b le O c t o b e r 1, 1929 to S t o c k h o ld e r s o f
r e c o r d at th e c lo s e o f b u s in e s s o n S e p te m
b e r 20, 1929.
T h e tr a n s fe r b o o k s o f th e c o m p a n y w ill
b e c lo s e d fr o m S e p te m b e r 20th to O c t o b e r
1st f o r th e m a ilin g o f d iv id e n d s .
J. H . L A R S Y , S e c r e ta r y .
C h ic a g o , I ll i n o i s .
63
ance sheet shows assets on the basis o f the
market value o f the securities then held
in excess of $600,000. The 10,000 shares
in question are convertible at the option
o f the holder on or prior to March 1, 1934,
into Common Stock, Class “ A ,” share for
STABILITY and SERVICE
HROUGH specialization in municipal
and county bonds this liouse is outstand
ingly equipped to serve those banks in
terested only in the strongest type of securities.
Our list of carefully selected offerings will prove
helpful to banks in meeting their investment
needs.
T
Write for descriptive circulars
of latest issues.
Ca
D. H su
r leto tí
~ INVESTM ENT
LIB E R TY
C o.
SECURITIESBUILDING
T )es J ^ lo in es
E L V Y N S. COWGILL
share; thereafter and on or before March
1, 1939, one share o f Common Stock “ A ,”
for each share and one-half o f participat
ing convertible preference stock. It is
planned to make application to list this
stock on the Chicago Curb Exchange.
Diversified Investments
S o f August 31, 1929, the investments
of the corporation are diversified as
follows :
One per cent Domestic Bonds; 5 per
cent Foreign Bonds; 11 per cent Public
Utility Stocks; 74 per cent Industrial
Stocks; 9 per cent Railroad Stocks.
In announcing their new offering, Met
calf, Cowgill & Company have this to say
in regard to the growth o f the investment
trust idea :
“ All these factors tending to enable the
investment trust to provide sound, thor
ough and flexible management o f large
funds, constitute, we think, adequate rea
sons fo r the steady growth and the in
creasing importance o f the investment
trust in the financial structure o f the
United States. In the course o f a few
years it has grown from a lusty infant to
strong young manhood, and it has now
just begun to reach an age and strength
which will give it the power o f important
accomplishment.”
“ There are sound economic reasons for
the existence o f large investing corpora
tions. The value o f such corporations to
the individual and to the public now ap-
A
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Federal Reserve Bank of St. Louis
Sound Bonds
and
Selected
Investment Stocks
O^p
Hoagland. Allum & fo .
I N C O I A
14 S. La Salle St.
CHICAGO
P
O
R
A
T
E
D
34 Pine St.
N E W YORK
Northwestern Banker
October 1929
64
Y o u r b a n k is d e siro u s o f d o in g a b e tte r b u sin ess.
O ne w ay
to a c c o m p lis h th is is to in v est y o u r fu n d s in b o n d s w h ic h
o ffe r 1, S a fe t y ; 2, S h o rt m a t u r it y ; an d 3, a s a tis fa c to r y y ie ld .
Our Collateral Gold Notes
h a v e a ll o f th ese q u a lific a tio n s a n d in a d d itio n
c a r r y o u r u n q u a lifie d e n d o r s e m e n t.
Io w a G u a r a n t e e
J U L IU S D . A D E L M A N ,
President
SH O PS BU ILD IN G
D E S M O IN E S , IO W A
For Your Secondary Reserve
P U B L IC U T I L I T Y
B O N D S and N O T E S
P o p u la r in te re s t in th e stock s o f le a d in g p u b lic u tility
c o r p o r a t io n s , lias c r e a te d s o m e u n u s u a lly a ttra ctiv e
in v e stm e n t o p p o r t u n it ie s a m o n g th e b o n d s a n d s h o rt
te r m n o te s o f su ch c o m p a n ie s .
T h e la tte r are p a r
tic u la r ly s u ita b le f o r y o u r r e v o lv in g fu n d .
s itio n
as sp e cia lists in p u b lic
u t ility
Our p o
se cu ritie s
tio n s o f im m e d ia te in terest.
Write for our Special Bank List
of current recommendations
F. N. K N E E L A N D & C O M P A N Y
105 West Adams Street
CHICAGO
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
October 1929
Competing for the Depositor's
Dollar
(Continued from page 25)
immigration, o f a large number of natur
ally thrifty people.
This report is respectfully submitted,
not with the thought that it definitely de
termines what our competition is and that
it can be successfully met, but rather in
the hope that it may be o f value to sav
ings bankers formulating their own plans.
Committee on Savings—-Edwin C.
Estes, Henry S. Kingman, C. F. Martin,
Alva G. Maxwell, Henry J. Mergler, Her
man H. Reinhard, Jesse F. W ood, Arlan
W . Converse, chairman.
en
a b les us t o m a k e s p e c ific a n d v a lu a b le r e c o m m e n d a
INCORPORATED
pears to be adequately demonstrated. A
considerable number have been organized
for a sufficient length o f time so that the
success o f this form o f financial corpora
tion has been quite definitely proved. In
deed, the factors favoring the develop
ment o f such organizations are so numer
ous, that a steady growth in their size,
number, and financial influence seems to
be assured.”
“ For these reasons we have considered
it sound policy to land our energies and
organization to the creation and operation
o f such a company and accordingly in
October, 1928, the Investment Administra
tion Corporation was organized under the
laws o f Delaware.”
The steady growth of Metcalf, Cowgill
& Co., Inc., as an investment house has
led to wide expansion on the part o f this
firm. At the present time offices are main
tained in four cities. J. G. White, presi
dent o f the company, is in charge of the
Chicago office, at 120 So. La Salle Street;
E. H. Johnson is in charge o f the Sioux
Falls, South Dakota office, at 307 Security
Bank Building; The Sioux City, Iowa,
office at 630 Davidson Building, is man
aged by Fritz Fritzon and Clint Varnum;
and the Home Office in the Equitable
Building, Des Moines, is o f course under
the supervision o f the firm heads, Donald
Metcalf and Elvyn S. Cowgill, both of
whom have been in the securities business
fo r many years.
C o n tin e n t a l F o r m s I n v e s tm e n t
T ru st
The outstanding event in Chicago finan
cial circles last month was the announce
ment by the Continental Illinois banking
group o f the establishing o f the Conti
nental Chicago Corporation, an invest
ment trust with an authorized capitaliza
tion o f $500,000,000. Public offering of
an initial issue o f 750,000 shares of no par
preferred and 750,000 shares of no par
common stock was made at $68.50 a unit.
The issue was immediately over-sub
scribed. An additional one million shares
o f the common stock were purchased by
65
the Continental Illinois Company, giving
the corporation a paid-in capital o f $63,750,000. The stock was listed on the Chi
cago Stock Exchange in units of one share
preferred and one share common.
Arthur Reynolds, chairman o f the Con
tinental Illinois Bank and Trust Com-
BABCOCK,RUSHTON
& COMPANY
Established in 1895
C H IC A G O
NEW YO R K
D ES M O IN E S
STOCKS
BONDS
G RAIN & PROVISIONS
M em bers
N e w Y o r k S to c k E x c h a n g e
C h ic a g o
S to c k
E xchange
C h ic a g o
B oard
of
T rad e
D ES M O IN E S O F F IC E , 516-518 W a ln u t S treet
P h o n e : M a r k e t 4800
L a v e n ie M . B a r lo w ,
R e s id e n t M a n a g er
DIRECT PRIVATE WIRES
Orders E xecuted In A ll Markets
ARTH U R REYNOLDS
pany, is president o f the corporation.
James R. Lea veil, executive vice president
of the Continental Illinois Company, is
vice president and Abner J. Stilwell, vice
president o f the bank, is secretary and
treasurer.
It is the belief of Arthur Reynolds,
president o f the corporation, that an in-
Constant Supervision
— o f y o u r in v e s t m e n t h o ld in g s is n e c
essa ry t o in s u r e c o n s e r v a t io n o f p r i n
c ip a l a n d to o b t a in th e m a x im u m r e
tu rn .
W e are p r e p a r e d to p e r f o r m
s e r v ic e f o r y o u .
th is
Y o u a re in n o w a y
o b lig a t e d w h e n y o u a v a il y o u r s e l f o f
o u r fa c ilit ie s f o r th is p u r p o s e .
Dawson , Howe & Dawes
JAMES R. LEAYELL
vestment trust established under banking
auspices will find a large field of profit in
furnishing capital and management to
businesses and industries which are either
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
IN C O R P O R A T E D
IN V E S T M E N T
C h ic a g o
S E C U R IT IE S
D aven p ort
D e s M o in e s
Northwestern Banker
October 1929
66
in the early stages of development or hold
unrealized prospects. “ W e know from
experience,” he said, “ that there is a real
need fo r this additional banking service.
A. B. Leach & Co., Inc.
Underwriters and Distributors
of Investment Securities
Government
Municipal
Public Utility
Industrial
In denial
pose o f the
tion would
and control
Private IVire Connections to Principal Cities
39 South La Salle Street, Chicago
N E W YORK
“ In the rapid march of events which
has brought greater expansion during the
past three years than in the previous
forty,” Mr. Reynolds continued, “ the Con
tinental Illinois, along with the other out
standing banking institutions, has breasted
or anticipated the tide o f developments.
The new corporation will do what neither
the bank nor its investment subsidiary has
been in a position to do and will, there
fore, greatly augment the existing facili
ties o f the Continental Illinois banking
organization.”
o f rumors that a primary pur'
Continental Chicago Corporabe to acquire stock holdings
o f banking organizations, Mr.
SA N FRANCISCO
Canadian Securities
STOBIKfORIPNGivi\nHLWS
INCORPORATED
Specialists M in in g Stocks
206 S o u t h s i x t h S t r e e t
A t l a n t i c 4295
M IN N E A P O L IS
Private Wires from C eas/ to C oast
ABNER J. STILW ELL
Municipal Bonds
Reynolds was emphatic. “ The Continen
tal Illinois does not contemplate an expe
riment in chain banking” was his reply
to this suggestion. “ W e propose inde
pendent operation as a unit, with develop
ment of that unit to its fullest possibility.”
Safety o f P rincipal
A ll M aturities
A ll D en om in a tion s
T ax E xem ption
4.25 to 6.00 per cen t
Write for offerings and Bank Discounts
SheJG m chdtStondCb,
Incorporated 1910
M U N IC IP A L B O N D S
39 So. La Salle St., Chicago
New York
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Philadelphia
October 1929
St. Louis
Detroit
Some o f Chicago’s most prominent men
are to guide the destinies o f the Conti
nental Chicago Corporation. In addition
to Mr. Reynolds, directors o f the trust
are: Bernard A. Eckhart, president B.
A. Eckhart Milling Company; Stanley
Field, president Field Museum o f Natural
History; Charles F. Glore o f Field, Glore
& Company; D. R. McLennan, president
March & McLennan, In e.; George M.
Reynolds, chairman executive committee
Continental Illinois Bank and Trust Com
pany; Eugene M. Stevens, president Con
tinental Illinois Bank and Trust Com
pany; Edward F. Swift, vice president.
Swift & Company; and F. Edson White,
president Armour & Company.
67
H ave B on d Prices T urn ed
the C orner?
ERTAIN authorities believe that bond prices have defi
nitely touched bottom and that they are now in for
a gradual rise. They see in the lower rate of hankers* ac
ceptances at the New York Federal Reserve Bank and in the
latter's increased holdings of United States Government bonds,
factors that will have a substantial influence on the money
market.
C
Whether you hold with these views or not, there is no ques
tion that good bonds are now obtainable at bargain prices.
An examination of leading bond averages indicates that pres
ent yields are higher than at any other time since 1925.
As Iowa’s oldest and largest bond house, we maintain at all
times a well-diversified list of high-grade bonds of every type
— municipal, industrial, utility, government, and railroad—
and in varying maturities, suitable for the reserve require
ments of hanks and for the investment needs of their cus
tomers.
Our thirty-eight years of close association with hanks and
hankers throughout Iowa, qualifies us in a special way to be
of service in the consideration of a hank’s investment problems.
We invite you to consult us at any time.
Send to Our Davenport Office fo r Our
Current List of Attractive H igh-G rade
Offerings Suitable fo r Your Investment
Portfolio
Geo. M. B eclitel ÓT Co.
Established 1891
Bechtel Building Davenport,Iowa.
F irst Io w a T ru s t B u ild in g
E q u it a b le B u ild in g
G ra n d O p e r a H o u s e B u ild in g
B u r lin g to n
D es M o in e s
D ubuque
I O W A ’ S
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
O L D E S T
A N D
L A R G E S T
B O N D
H O U S E
Northwestern Banker
October 1929
68
E R V I C E
A bank’s success as a correspondent is,
perhaps, best indicated by its duration o f
continuous, unbroken service to its indi
vidual clients.
M any Iowa banks have made the
Commercial National their W aterloo
banking headquarters for the past fortysix years. Such a record is w orthy o f note
to banks considering a connection in this
territory.
2 *
E. W. MILLER, President
JAMES M. GRAHAM, Vice President
H. W. W ENTE, Cashier
S. C. KIMM, Assistant Cashier
R. L. PENNE, Assistant Cashier
CHAS. S. McKINSTRY, Assistant Cashier
T5 he
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Federal Reserve Bank of St. Louis
Commercial National
Bank
WATERLOO, IOWA
C A P IT A L A N D
S U R P L U S — O N E -H A L F M IL L IO N
DOLLARS
Northwestern Banker
October Í929
69
Tlie “Reloading” Scheme
In its national program to expose the
principles on which fraud schemes are
based, the National Better Business
Bureau recently displayed in industries
its weekly poster on “ Re-Loading.” This,
the Bureau states, is a scheme o f the
fraudulent salesman to go back and re
work “ suckers” who have proven them
selves to be easy to sell.
In a communication from the Bureau
to personnel managers in the industries
where the posters are exhibited it is
pointed out that reliable dealers sometimes
recommend additional purchases o f their
securities but the Bureau says that the re
loading schemes o f the swindler are
usually predicated on either the merger
appeal, the exchange o f stock appeal, or
the appeal based on fictitious news that
will result in the stock being worth more
money.
L a m
s o
B
x
r o s
. & G o.
Established 1874
S t o c k s • B o n d s • G r a in • C o n s i g n m e n t s
MEMBERS
N ew Y o rk S tock E x ch a n g e
C h ic a g o B o a r d o f T r a d e
C h ic a g o S t o c k E x c h a n g e
N e w Y o r k C urb ( A s s o c ia t e )
K a n s a s C it y B o a r d o f T r a d e
W i n n i p e g G ra in E x c h a n g e
M in n e a p o lis C h a m b e r o f C o m m e r c e
A n d a ll o t h e r p r in c ip a l e x c h a n g e s
IO W A OFFICES
C e d a r R a p id s
D aven port
D e s M o in e s
F t. D o d g e
I o w a F a lls
M a r s h a llt o w n
D ubuque
M a s o n C ity
S io u x C ity
S to r m L a k e
W a t e r lo o
H O M E O F F IC E
166 W . Jackson Boulevard
Chicago
The communication reads, “ In the
merger scheme, a salesman will call and
report that the company is about to be
absorbed by another company which will
result in the stock being worth consider
ably more and as a special concession to
stockholders they are permitted to buy
some more stock at the old price before
the price goes up. O f course, the merger
never materializes.
“ In the exchange scheme, the salesman
frankly admits that the stock his prospect
holds is worth less than he paid but offers
an opportunity to recoup the loss by trad
ing the stock fo r some other which is
going to be worth a high price. In this
trade, however, a cash difference must be
paid to obtain the new stock. The new
stock is just as worthless as the old and
the victim is out the additional cash.
“ ‘Favorable information’ is o f a wide
variety. Usually it is that the stock is soon
to be listed on some exchange at a higher
price, but frequently the salesman will
vary it according to its appeal to a par
ticular prospect. It is always fictitious.
Invariably the salesman says the value of
the stock will be increased but stockholders
are permitted to buy a certain ‘allotment’
o f shares at the old price.
“ The ‘double reload’ is sometimes
worked in this ‘allotment’ swindle. After
the prospect has bought his ‘allotment’
another salesman calls and poses as an
executive o f the company who is just
checking up to see if all stockholders have
been given the ‘good news.’ He subtly
gets the stockholder to tell him that his
‘allotment’ was a certain number of
shares whereupon the salesman becomes
alarmed and claims that the stockholder
was entitled to more shares than that and
the first salesman was robbing him by not
letting him have his full ‘allotment.’ The
prospect is told that this first salesman un
doubtedly was holding out so he could buy
the additional shares himself and make the
profit to w-hich the stockholder is entitled.”
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Federal Reserve Bank of St. Louis
Underwriters and Distributors
of Investment Securities
9
W B. M £MiIlam i f Co.
M e m b e r s C h ica g o S tock E x c h a n g e
120
South LaSalle St, C h ica g o
"Telephone "Randolph
3031
Northwestern Banker
October 1929
70
in Iowa!
We are now ready to
offer very liberal and
a t t r a c t i v e general
agent’s contracts di
rect with our Home
Office for the follow
ing choice locations in
Iowa:
Shenandoah
Red Oak
Council Bluffs
Keokuk
Burlington
Clinton
We would prefer to
hear only from expe
rienced salesmen who
are familiar with the
Iowa field.
Royal Union Life Building
Corner Seventh and Grand Avenue
Des Moines, Iowa
ROYAL
U N IO N
L IFE
IN SU R A N C E
Des Moines, Iowa
A. C. TUCKER, President
Northwestern Banker
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Federal Reserve Bank of St. Louis
October 1929
COM PANY
71
Insurance
Insurance Stocks Are Becoming
Popular Investments
A Statement
NSURANCE stocks are gaining an in
which had to be made up out o f income
creasingly wide distribution according
on investments before a profit could be
to Charles D. Robbins, head o f the New By C H A R L E S D . R O B B I N S
shown. But more and more accurate pre
President, Charles D. Bobbins
Company,
York investment house o f Charles D.
diction of losses and more and more care
Investment Bankers, New York.
Robbins & Company. Mr. Robbins’
ful selection o f risks have now placed
Chairman, Finance Committee, Federal
statement is o f particular interest because
most o f the stronger insurance companies
Surety Company of Davenport.
o f the fact that his firm headed the syndi
in a position where they show a substan
cate which recently underwrote a $3,000,tial profit on underwriting operations, in
earnings, combined with this increased
000 stock issue fo r the Federal Surety
some cases more than sufficient to cover
demand, has caused a tremendous appre
Company o f Davenport— one o f the mid
dividend requirements.
ciation in the quoted value o f insurance
“ As investing companies, the leading
dle west’s largest insurance institutions
o f which W . L. Taylor is president. Sub
stocks, amounting in some cases to over
units in the insurance field have shared
1,000 per cent in ten years.
sequently, Mr. Robbins became chairman
the huge profits which have been common
o f the finance committee o f the Federal
to the better managed corporations o f
R
e
a
lly
an
Investm
ent
Com
pany
Surety Company.
this class in recent years. Since they are
“ Having graduated its premiums to
working on borrowed capital which in
“ For many years,” said Mr. Robbins,
cover its losses, the modern insurance com most cases costs them nothing, a compar
“ most insurance stocks were held in the
pany makes its largest profits from wise
atively small increase in the rate o f re
East by a comparatively small group o f
investment o f its funds. It is thus in
turn on money invested means a large
investors who were familiar with the
effect, an investment company, operating
increase in net income o f the company.
profit making possibilities o f such a stock,
largely on borrowed money in the form
especially when held for a number of
D ifference in Investm ent Policies
o f premiums prepaid which must even
years. Two factors, however, have op
“
This very fact suggests an element
tually
be
paid
out
in
large
part
on
losses
erated to change this situation and make
wdiich will occur.
o f danger in buying the securities o f in
possible wider distribution : 1. The quasi
surance companies. The price of such
“ And this borrowed money costs the
public nature o f the insurance business
securities, like that o f other stocks, is
companies nothing.
Only a few years
combined with the desire o f insurance in
based primarily on earnings record and
ago, most insurance companies showed
stitutions to have their agents and the
earnings possibilities. While a well mana loss on their underwriting activities,
insuring public become interested in their
business; and secondly, because the gen
eral investing public has discovered the
attractiveness of insurance stock invest
T h is ta b le sh ow s p r o fits m a d e b y in v e sto rs in in s u r a n c e sto ck s o v e r th e p a s t ten yea rs.
F ig u r e s in p a r e n th e s e s are p a r values
ment and have decided to own some o f
Av.
D ivs.
it.
Barron’s — the
national financial
C ost 1
a n n u al
N o. o f
re ce iv e d
R ecen t
sh are
C
a
p
ita
l
T
o
ta
l
g
a in
shares
m
a
rk
e
t
t
o
M
ay
weekly,” said Mr. Robbins, “ recently
J a n ., 1919
added
invested
n o w helc
value
1, 1929 nel. divs.
published some very significant figures
A e t n a ( F i r e ) ( 1 0 0 ) ................ . . $370
21.6
$50
$ 420
$1,118
$ 257
1%
A e t n a C a su a lty ( 1 0 0 ) ......... . . 530
50
2,813
308
41.8
580
1%
with regard to the past, present and fu
A e t n a L i f e (1 0 0 ) ................... . . 695
24.4
200
4,140
895
3
248
ture performance o f such stocks.” Bar
A m . S u r e ty ( 2 5 ) ................... . .
60
52.5
60
2
310
74
A u to (1 0 0 )
.............................. . . 325
2.0
900
82
1,225
1,400
2%
ron’s said in p a rt:
B o s to n (1 0 0 )
.......................... . 450
56.4
335
450
3
2,775
C on n . G en era] ( 1 0 0 ) ............ . . 700
87.7
504
500
1,200
5
11,750
Parallelling the more wide-spread
C o n tin e n ta l (1 0 ) ..................... . .
54.3
57
63
57
319
3%
ownership o f equities in the United
F id . & D e p o s it (5 0 ) ............ . 119
38.3
1 2 /3
500
100
119
F id .-P h e n ix ( 1 0 ) ..................... . . 370
140
526
77.1
510
40
4,120
States in the last few years has been the
F ir e A s s o . o f P h il. ( 1 0 ) . . . . . . 328
73.4
550
310
878
27 %
1,246
greater diffusion o f ownership o f insur
G len F a lls ( 1 0 ) ....................... .
26.2
64
72
100
164
544
8
G
lobe
&
R
u
tg
e
rs
(
1
0
0
)
.........
143.0
.
.1,000
1,324
1,000
10
14,700
ance stocks. It is only within compara
G rea t A m e r . (1 0 ) ................ . . 330
18.6
392
34 %
1,536
324
654
H a n o v e r (1 0 ) .......................... . .
13%
82.0
tively recent times that insurance shares
79
80
50
1,169
130
37.3
H a r t fo r d F ir e (1 0 0 ) .............. . . 705
820
550
5
5,375
1,255
have attracted the attention of the gen
H a r tfo r d St. B o ile r (1 0 0 ) . . . . 370
370
1,290
29.0
210
1%
H o m e * (1 0 0 )
.......................... . . 450
150
600
3
1,800
24.0
315
eral investing public, although shrewd
Ins. Co. o f N . A . ( 1 0 ) ............ . .
25
22%
47%
178
32
32.5
2%
wealthy investors had put them away in
M a r y la n d C a su a lty ( 2 5 ) . . . . . .
85
37%
1 22 %
25.0
348
96
2%
N a tio n a l F ir e (1 0 0 ) ............ . . 355
100
455
2,205
294
42.8
1%
strong boxes, as inventories or estates in
N a tio n a l L ib e r t y ( 5 ) ............ . . 300
250
550
100
3,125
394
51.4
recent years have shown. But insurance
N a t io n a l S u re ty ( 5 0 ) ............ . . 170
300
470
975
239
15.1
7%
N ia g a r a ( 2 5 ) ............................ . . 210
150
360
10
1,800
44.8
255
stocks had no listed market, and were
N orth ern (2 5 )
....................... . . 102
225
10 2 / 3
173
37.0
327
1,387
N o r t h R iv e r (1 0 0 ) ..............
40
167.0
selling at high prices, with the result that
47
87
3 1 /3
1,467
139
P a c ific F ir e ( 2 5 ) ................ . .
45
45
400
89.1
66
2%
the so-called average investor took little
P h o e n ix (1 0 0 ) ....................... . 405
100
505
2
2,000
326
34.3
P r o v id e n c e -W a s h . (1 0 0 )
. . 136
154
98.0
136
1,380
interest in them.
1%
S ec. Ins. N . II. ( 2 5 ) ............ .
40
2
38
21.1
45
85
246
“ This situation has been greatly altered
48.6
S p r in g fie ld F . & M. ( 2 5 ) . . . . 225
61
286
1,520
222
8
S tu y v e s a n t (1 0 0 )
................ . .
39.4
50
86
136
650
48
1 3 /7
in the past few years. Reductions in par
53.2
T r a v e le r s (1 0 0 )
..................... . . 745
192
2 1 1 /1 2 5,782
392
937
value and stock splitups have brought
U . S. C a su a lty ( 2 5 ) ............ . 185
300
485
12
1,320
205
20.5
U . S. F id . & G u ar. ( 1 0 ) . . . . 120
2 12 %
3 32 %
16 2 / 3
1,250
167
31.1
the quotations down to a price level which
U . S. F ir e (1 0 ) ....................... . .
35
35
4
540
51
151.0
^ E x clu s iv e o f r ig h ts to p u r c h a s e s to c k in su b sid ia rie s.
has resulted in substantial buying by the
investing public. Notable betterment o f
I
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Federal Reserve Bank of St. Louis
Northwestern Banker
October 1929
72
N ew
EQ U IPM EN T
Seven new policy form s . . .
The Triple Guaranteed Option
policy on which the insured m ay
pay a level prem iu m and have a
25 Year Endow m ent or a paidup Life policy in a shorter
period, or m ay pay a reducing
prem ium and have a 25 Pay
m en t Life policy . . . The
Guaranteed In com e Bond, a
contract w ithout death benefit
paying a life incom e to begin at
ages 55, 60, or 65, and payable
for ten years certain . . . The
Single Prem ium W h o le Life
with Guaranteed A n n u ity In
com e and the Single P rem ium
20 Year Endow m ent with G u ar
anteed A n n u ity In com e, lu m p
sum investm ents w ith cash
value always at par guaran
teeing 3V2 per cent annual in
com e, with dividends bringing
the average to 4*4 to 5l/ 4 per
cent
. . .
A participating
C h ild’s 20 Paym ent Life policy,
rounding out the C om p an y ’ s
juvenile line, and liberalized
participating C h ild ’ s 20 Year
E ndow m ent and C h ild’ s E d u
cational E ndow m ent policies.
Simplified “ p roof o f death
blanks” with a sales appeal—
som eth in g new !
A booklet o f true unsolicited
letters from appreciative c la im
ants under death and disability
benefits.
Complete sales data on the
Endowment at Age 85 policy
bound in convenient vest pocket
size.
A new Baby Health Service a
step ahead of anythin g of its
kind.
All this, new equipment fu r
nished NwNL Fieldm en at three
Regional Conventions held in
A u gu st. Backed by this array
of powerful selling helps, the
Agency O rganization is again
scattered th rou gh out 31 states
in ten t on utilizing its new tools.
«
N
•
•
o r t h w e s t e r n
N
a t io n a l
LIFE INSURANCE COMPANY
O. J. ARNOLD. President
S T R O N G - MinneapoIis.Miim. —L I B E R A L
MORE
THAN
IN S U R A N C E
$300,000,000
IN
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
FORCE
October 1929
aged investment company can show a
profit even in a declining stock market
through selective investment, the rate o f
returns is naturally much higher in a
bull market, such as we have witnessed in
the past six or seven years, than in a de
clining or irregular market.
And the
ratio of resources to capital multiplies
this effect.
“ O f course, this is not the condition o f
all companies. Many states limit the
classes o f securities which insurance com
panies may hold. Especially is this true
o f life insurance companies, which in
many cases are limited in their invest
ments to mortgages, bonds, and a re
stricted amount o f high grade preferred
stock. It is for this reason that greater
profits on investments have generally been
shown by the fire than by the life insur
ance companies in the past few years.
And fo r the same reason, the end o f the
bull market is likely to cut the earnings
o f life insurance companies much less than
those of fire companies.
“ Even within the legal limits, there are
considerable differences in the investment
portfolios o f insurance companies. Many
companies hold a large amount o f stock
in other insurance enterprises, and this
in many cases multiplies the effect o f
factors bearing on the insurance business,
either favorably or unfavorably. Bank
stocks are another favorite form o f in
vestment, and these have shown a ten
dency to appreciate steadily over a long
period, regardless o f stock market move
ments. Mortgages, held in greater or less
proportion by all insurance companies,
are a fairly stable source o f revenue, fluc
tuating little either in value or yield. And
bonds, held usually in greater amount by
life than by fire casualty companies, fre
quently appreciate in price with the de
cline in money rates which has usually
followed the end o f a bull movement.
Some Notable Performances
“ Because o f the more liberal provisions
o f their charters, which permit much
greater freedom in choice o f securities fo r
investment portfolios, fire insurance com
panies have been the outstanding per
formers. Earnings o f the most profitable
o f these companies have been spectacular.
Globe & Rutgers Insurance Co., fo r ex
ample, was selling in January, 1919, for
$1,000 a share. Following a 400 per cent
stock dividend in 1922 and a 100 per cent
stock dividend in 1928, the purchaser of
one share in 1919 would have at present
ten shares on which he would have re
ceived, in the period to May 1, 1929, div
idends totalling $1,324, and which, at the
recent price o f $1,470 has a market value
o f $14,700. Profits, including dividends,
have thus averaged 143 per cent a year.
North River Insurance Co., if one had
exercised rights granted by the company,
would have earned for the investor al
most 170 per cent annually on the total
capital invested, over the 1919-28 period.
United States Fire Insurance, Providence,
Washington, Hanover, and Connecticut
General Insurance are other prominent
examples.
“ In January, 1919, the purchase o f one
share each o f 36 insurance stocks would
have involved an investment of $10,276.
Over the following ten years, an addi
tional investment o f $5,692 would have
been required to take advantage o f
“ rights” making a total investment of
$15,968. On May 20, 1929, after receiv
ing dividends totalling $9,326, the in
vestor would have had securities with a
market value of $836,478, a profit, in
cluding dividends, o f $76,386 or at the
rate of about 46y2 per cent annually.
The Future of Insurance
“ It has been figured that the average
growth o f all branches o f insurance in the
United States, measured by total assets,
over the past 25 years has been 28 per
cent a year, over 12 times the rate o f
growth of population. With only 50 per
cent o f possible property values insured
against loss by fire, only a small fraction
o f potential life insurance written, and
constantly increasing fields for casualty
insurance, it seems likely that the insur
ance business will continue to grow faster
than the population, and that this growth
will be reflected in the price o f insurance
stocks.
New York Merger
Fusion o f the New York Indemnity
Company, one o f the largest casualty com
panies in the country, with the Insurance
Securities Company Group, was officially
announced recently by William B. Joyce,
chairman o f National Surety Company,
the world’s largest surety company, of
which the New York Indemnity Company
is the casualty branch. Simultaneously,
Insurance Securities Company, Inc.,
through W . Irving Moss, its president,
confirmed the addition o f the New' York
Indemnity Company to the fleet o f insur
ance companies owned and operated by
Insurance Securities Company, Inc.
The merger o f these interests marks a
new and close relationship between two
o f the largest and most active insurance
groups in the country. The announce
ments followed a series o f meetings be
tween W . B. Joyce, chairman o f the Na
tional Surety Company, and Mike M.
Moss, senior vice president o f Insurance
Securities Company, Inc. National Surety
Company becomes a larger holder o f stock
in Insurance Securities Company as a
permanent investment.
Meet in Washington
The regular fall meeting o f the National
Fire Waste Council will be held at the
headquarters o f the Chamber o f Commerce
o f the United States in Washington, D.
C., Tuesday, October 1st. T. F. Cunneen,
manager o f the National Chamber, stresses
73
the point that “ coming as it does just be
fore Fire Prevention Week, which is the
starting point o f the year’s activity, this
meeting looms up as especially important.”
Merged with Royal Union
The Royal Union Life Insurance Com
pany o f Des Moines has taken over the
business o f the Roman Catholic Mutual
Protective Society o f Fort Madison, Iowa,
which has been in business fo r half a cen
tury. The society, at the time o f the
merger, had about four and one-half mil
lion dollars o f insurance in force. The
Reverend Father C. B. Goetzinger of
Ionia, Iowa, was president and Peter
Kern general secretary and treasurer.
Peter Kern, Jr., was assistant secretary.
Assets o f the society have been turned
over to the Royal Union, which assumes
all contracts and obligations and guaran
tees there will never be any increase on the
policies which were issued by the com
pany.
According to President A. C.
Tucker o f the Royal Union, the company
following the merger, has more than $145,000,000 insurance in force, with total as
sets exceeding thirty million and surplus
o f a million and one-half. The merger
has been approved by the Iowa insurance
department.
Peter Kern, secretary o f the society, has
been elected a member o f the board o f di
rectors o f the Royal Union. In this ca
pacity he will be in an excellent position
to assist the company in stabilizing the
business which it acquires through the
merger.
The society, which was organized in
May, 1879, did business in Iowa, South
Dakota, Minnesota and Nebraska. All
local secretaries are to be retained by the
Royal Union, in the capacity o f collectors,
and to assist the latter company in han
dling the business to the best interests o f
the society’s members.
$ 4 ,0 0 0
Gone
lip in S m o k e
. . . since you started to read this
message.
Property owners in the United
States suffer stupendous fire losses
yearly— some of the loss this year
will occur in your own community.
Iowa National Fire insurance pro
tects a large proportion of Iowa
property.
When a loss occurs, the
Iowa National Fire’s prompt pay
ment reduces the shock to your de
positor’s account.
A very friendly
part of your banking service would
be your recommendation to your
depositors of Iowa National Fire
Insurance.
200 Billion Forecast
2 *
Life insurance now in force in the
United States will double to $200,000,000,000 before 1939, according to a pre
diction by Edward S. Goodwin, chairman
o f the finance committee o f Preferred A c
cident Insurance Company, and vice presi
dent o f Underwriters’ Service Corpora
tion.
The Tall Grown
Company
in the
Tall Corn State
Federal Surety Promotions
Bruce Wiles, heretofore in charge o f
the payroll audit division o f the liability
department and superintendent o f the ac
cident prevention department, has been
promoted to a special representative of
the executive department o f the Federal
Surety Company, Davenport. Mr. Wiles
will continue to have charge o f the safety
and accident prevention work o f the com
pany.
Fred W . Ilaner, heretofore in charge o f
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
>
1
Iow a N ation a l
Fire Insurance Companv
DES MOINES
Fire, Lightning, Tornado, Automobile
Northwestern Banker
J
October 1929
.. .
74
1-lie payroll audit division o f the southern
department with headquarters in Dallas,
has been promoted to succeed Mr. Wiles
at the home office and will have charge o f
the payroll audit division of the liability
and workmen’s compensation department.
Harry L. Risler o f the home office has
been promoted to the position of under
writer in the liability and compensation
department.
Jos. A. Pelegrin o f the home office has
been promoted to the position o f under
writer in the liability and compensation
department.
Big Hail Policy
A record-breaking policy covering crop
damage by hail to the extent o f $201,590
has been written for the Continental In
surance Company, by its local agent at
W olfe Point, Montana, A. T. Listug.
The crops protected are 16,000 acres of
wheat, 3,000 o f flax, and about 1,200 acres
o f other grains, including barley, oats, rye
and spelt.
Favorable Experience
Life insurance companies that have en
tered the non-medical field have had a very
favorable experience with such business
with very few exceptions. This is indi
cated by a chart showing the practice and
experience of 101 members o f the Ameri
can Life Convention which has adopted
non-medical underwriting just issued by
the convention’s headquarters in St. Louis,
Missouri.
Of the 101 insurance companies that
reported to the convention regarding their
non-medical business, 80 stated this class
o f business has been favorable so far as
their experience was concerned. One com
pany said its experience was questionable,
three stated it was about 70 per cent of
A. M. select, one 62 per cent expected
1928 ratio, another reported 49.5 per cent
total business ratio and two others said
the experience was slightly higher than
medical examination business. Several of
the companies did not report on their
actual experience with non-medical.
Big Gain for August
A new business total o f $5,326,700 for
August gave the Northwestern National
Life of Minneapolis the best August pro
duction in its history, a gain o f 43 per
cent over the same month a year ago.
As three regional conventions were held
during August, attended by the best pro
ducers o f the company, the agency organi
zation was necessarily out of the field for
the greater part o f the month. Despite
this handicap, however, the total overshot
the $5,000,000 goal by a good margin.
The increase over August, 1928, was made
although a larger proportion of the pro
ducing forces attended the regional meet
ings this year than were present on the
single convention trip held during August
last year.
Fatalities in Canada Increase
Absolutely Dependable
M a n y t h in g s g o t o m a k e u p a t h o r o u g h l y d e
p e n d a b le l i f e in s u r a n c e c o m p a n y .
1.
2.
3.
4.
Financial strength.
Relations with policyholders.
Relations with agents.
Measure of its service.
I n a ll o f th e s e “ T h e C o m p a n y o f C o - o p e r a t io n ”
is
absolutely dependable.
Y o u c a n ’ t ask f o r m o r e a n d w e w o u l d n o t o ffe r
y o u less.
Des Moines Life and Annuity Company
J. J. Shambaugh, Pres.
Des Moines, Iowa
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
October 1929
While automobile fatalities are not so
great a problem in Canada as they have
been for so many years in the United
States, they are becoming a major prob
lem in the Dominion, if the record o f the
past two years can be taken as a criterion.
Among the more than 1,200,000 industrial
policyholders o f the Metropolitan Life In
surance Company in Canada automobile
fatalities have increased from 4.3 per
100,000 in the first six months o f 1927 to
8.4 fo r the same period in 1929. The rate
fo r the first six months o f 1928 was 5.8.
No cause is assigned fo r an automobile
fatality rate that has practically doubled
in two years by the statisticians o f the
insurance company.
Shows IMice Gains
The Missouri State Life Insurance
Company reports a most satisfactory gain
in paid-for production during the past
seven months o f 1929, with a total o f
$205,420,387, ordinary and group life, ac
cording to Bailsman Taylor, president o f
the company. This is a gain o f 31 per
cent over the corresponding period o f
1928.
During July o f this year $32,388,292 o f
insurance was reported paid-for, as
against $20,890,275 during July, 1928.
This is an increase o f $11,498,017.
Who Buys Big Policies?
The Lincoln National Life Insurance
Company has made a list of the occupa
tions o f buyers o f insurance policies o f
$10,000 and larger fo r the month of June,
1929, and has suggested this list to its
agents as pointers to fields where large
size policies may be written. The list in-
75
eluded 33 salesmen, 22 merchants, 17 office
managers, 15 factory owners, 11 contrac
tors, 10 bankers, 9 superintendents and
foremen, 8 doctors and professional men,
8 clergymen and teachers, 6 managers of
garages and warehouses, 5 hotel managers,
4 editors and publishers, 4 lawyers and
judges, 4 wholesale dealers. In addition,
there were a considerable number o f voca
tions which included 3 or less comprising
aviators, florists, electroplaters, electri
cians, motormen, undertakers, veterinaries, abstractors, dry cleaners, and
others. This is at least a good prospecting
tip because others o f the same vocation
might be good prospects fo r big policies.
A Great Record
A remarkable record in the production
o f new business which has been virtually
free from lapsation is that o f Meldrum
Gray, general agent at Columbus, Ohio,
for the Northwestern National Life of
Minneapolis.
In the four years and seven months
ending August 1, Mr. Gray’s personal
paid-for new business totalled $1,015,000.
All o f this business was in force August
1st except $20,000 paid out in death
claims and another $20,000 surrendered
fo r cash.
Foremost among the reasons fo r setting
this phenomenal record, Mr. Gray places
selection o f prospects. Before a policy is
placed by this producer, he is practically
certain that it will not be lapsed. His rec
ord attests to the accuracy o f his judg
ment.
You Have Something to Sell—
Sell It!
(Continued from page 18)
in surveys it has been found that in many
cases service charge plans are in effect, but
are not actively used. In one case less
than 5 per cent o f the small accounts that
should have been charged were paying a
service charge.”
W hy? Because a thorough job o f edu
cation (selling) was not done. Banks in
Columbus, Ohio, thought their service
charge was satisfactory. One bank had
been collecting $10,000 a year— many ex
ceptions were made— because the customer
had not been sold. Then the clearing house
association decided to educate— sell— re
sult this bank is now collecting $45,000 a
year. That’s the result o f scientific sales
manship. The success o f the service
charge is based on the fact that every
customer whose account is subject to the
charge should pay— NO E XC EPTIO N S.
The man or woman who knows how to
sell and particularly when to sell bank
service is in demand today— and can about
write their own ticket.
People will sit up and take notice if
you sit up.
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Federal Reserve Bank of St. Louis
Neighbors!
A A O U have to get close to peo^ pie to understand their prob
lems and their needs.
Situated
here in the great M iddle W est
we are close enough to do that.
Our years
of
caring
for
the
casualty insurance and surety
needs in this great field have
proved this. A nd we carry on—
soliciting your confidence and
patronage.
___________________ A NATION AI, IN S T IT I TIOX OF SKUVICE____________________
I
W . L. T A Y L O R , President
Casualty Insurance
Surety Bonds
HOME OFFICE
DAVENPORT, IOWA
Northwestern Banker
October 1929
76
W ììy the Name V on Schrader**
F IT is true that coursing through the
blood o f many leaders and their de
scendants is a penchant fo r and a more
than natural ability to succeed in a par
ticular business or line o f activity, then
Iowa is certainly the home o f a family
long imbued with the interest to be found
in banking, especially successful banking.
I
Good
The Morgans represent a family that
has been associated with investment bank
ing for generations. The Hills are an ex
ample o f an interest in transportation that
descended from father to son and the son’s
son, and in this same consistent way, fo l
lowing an apparent and dominating urge,
the von Schraders have been associated
with Iowa banking history fo r several gen
erations, and bid well to continue the tra
ditional family characteristics fo r genera
tions ahead.
The senior member o f the von Schrader’s
banking family, F. von Schrader, presi
dent o f the Ottumwa Savings Bank, is,
from the standpoint o f service, one o f
Iowa’s oldest bankers, and is certainly one
o f her most successful, well liked and
highly respected financiers.
Mr. von Schrader’s father, Otto von
Schrader, was a banker at Maquoketa.
The bank which he organized there and
headed for years is now the First Na
tional. He was later succeeded by another
son, Charles von Schrader, who remained
as president until his death a few years
ago. Another son named after his father,
Otto von Schrader, is today vice-president
o f the Eau Claire National Bank, Eau
Claire, Wisconsin.
This period o f history covered the time
in which F. von Schrader became con
nected with another great American busi
ness, that o f railroading, and incidentally
was associated with W . C. Brown who was
Why Group Banking
(Continued from page 40)
Mr. Hammond said that no part o f the
country has richer or more varied re
sources than the states in the Ninth Fed
eral Reserve District. Its fuel and energy
resources include a tenth o f all the poten
tial hydroelectric power in the United
States; its supply o f minerals and raw
materials for industry is immense; and
agriculturally it is one of the most im
portant districts in the country.
“ I f in the Northwest we are to go fo r
ward in this age o f mass production and
expanding markets,” he said, “ we must
have the service o f strong banking facili
ties, whose interests are linked with ours
and who know our problems, so that we
will be independent o f the distant money
Northwestern Banker
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Federal Reserve Bank of St. Louis
October 1929
B a n k in g
2. It has never missed a dividend.
3. Its earning for a period o f twenty
years average 35 per cent.
F. YON SCHRADER
later to become one o f the commanding
figures in American transportation circles.
Mr. Brown, who subsequently became pres
ident o f the New York Central Railroad,
was at that time superintendent of the
Beardstown (Illinois) division o f the C.
B. & Q. R. R. Frank von Schrader was his
secretary.
However, interesting as he found rail
roading, the banking business drafted an
other von Schrader and F. von Schrader
organized the Ottumwa Savings Bank in
1888 with an initial capital o f $50,000.
Figures and facts best reveal the suc
cess o f that bank under the von Schrader
direction and management.
Here are a few o f them.
1. It is one o f the few banks in Iowa
to enjoy a triple A rating.
centers; we must have the assistance of
men experienced in the larger financial
operations and world-wide market de
mands to get the best markets; we must
have the supervision o f men with a life
training in banking so that we may in a
measure avoid in future the ruin brought
upon our depositors, directors and stock
holders by the collapse o f thirty per cent
o f the banks in the Ninth District from
1922 forward, in large measure through
the mistakes o f amateur bankers.”
Two Michigan Banks
Affiliation with the First Bank Stock
corporation, Minneapolis, o f two large
banks serving the metals and mining in
dustry o f northern Michigan, and the ad
dition to the corporation’s board o f di
One might write pages about the splen
did history o f the Ottumwa Savings Bank
and the banking acumen o f F. von Schra
der without saying as much as these three
simple statements contain in their signifi
cance.
Mr. von Schrader’s many friends hope
that he contemplates no early retirement,
and are glad that Iowa banking circles
also include his two sons, Max von Schra
der, now closely associated with his father
as cashier o f the Ottumwa Savings Bank,
and Otto von Schrader, associated in the
lowa-Nebraska territory with Blythe and
Company, Chicago Investment Bankers.
F. von Schrader is also vice-president
o f the South Ottumwa Savings Bank, and
a member o f the Ottumwa Library Board.
He is a man o f retiring disposition who
possesses a quiet personal charm and
friendly wit that has won for him, through
the years, a constantly widening circle of
friends.
rectors o f James MacNaughton, president
of the Calumet and Heola Consolidated
Copper Mining Company, were announced
by officials o f the corporation.
The two banks are the First National
o f Hancock and the First National o f Cal
umet. They are the first banks in Michi
gan to affiliate with the group.
A Bird Story
W ifie: “ A little bird told me you were
going to buy a big automobile fo r my
birthday.”
H ubby: “ Hum— that bird must have
been a little cuckoo.”
Man blames fate fo r other accidents,
but feels personally responsible when he
makes a hole in one.
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Federal Reserve Bank of St. Louis
77
EAD1NG B AN K S A N D
TRUST COMPANIES UNITE
to fo rm N orth w est’s stm naest
fin a n cia l in stitu tio n
A g r o u p o f th e le a d in g b a n k s a n d tru s t c o m p a n ie s o f th e
M id w e s t a n d N o r t h w e s t h a v e a ffilia te d to f o r m th e N o r t h w e s t B a n c o r p o r a tio n .
T h e s e b a n k s a n d tru st c o m p a n ie s , lo c a t e d in th e k e y
c it ie s o f th e M id w e s t a n d N o r th w e s t, s e rv e th is g re a t e m p ir e o f
1 1 , 0 0 0 ,0 0 0 p e o p l e .
T h e c o m b i n e d r e s o u r c e s o f th e N o r th w e s t
B a n c o r p o r a t io n , a m o u n t in g to o v e r $ 3 6 0 ,0 0 0 , 0 0 0 , w ill p r o v e a
g re a t asset in th e r a p id e x p a n s io n o f b u s in e s s a n d a g r ic u lt u r e in
th e M id w e s t a n d N o r t h w e s t .
M o r e th a n 5 0 0 le a d e r s in b u s in e s s a n d fin a n c e , liv in g in all
p a rts o f th is t e r r it o r y , h a v e b e e n c a lle d t o th e d ir e c t o r a t e o f th is
p o w e r f u l b a n k in g
grou p
a n d its a ffilia te d
in s t itu tio n s .
T h e ir
in t im a t e k n o w le d g e o f th e n e e d s a n d p o s s ib ilit ie s o f th is t e r r it o r y
w i l l b e o f g re a t v a lu e in f o r m u la t in g p la n s f o r f u t u r e d e v e lo p m e n t
o f t h e M id w e s t a n d N o r th w e s t.
A lr e a d y t h ir t y -e ig h t o f th e le a d in g b a n k s a n d tru st c o m p a n ie s
in t w e n ty -s e v e n c itie s o f M in n e s o t a , I o w a , W is c o n s in , N e b r a s k a ,
M o n t a n a , S o u t h D a k o ta a n d N o r t h D a k o t a h a v e a n n o u n c e d th e ir
a ffilia tio n w ith th is g rea t fin a n c ia l in s t it u t io n .
A lr e a d y 9 ,0 0 0
in f lu e n t ia l m e n a n d w o m e n li v i n g in th e M id w e s t a n d N o r th w e s t
h a v e b e c o m e s t o c k h o ld e r s a n d o w n o v e r 1 ,0 0 0 ,0 0 0 sh a res o f s to c k
in
th e
N o rth w est
B a n c o r p o r a t io n ,
w h ic h
assu res
s y m p a th e tic
in te r e s t a n d a n e v e r -in c r e a s in g v o lu m e o f b u s in e s s .
Northwest B ancorporation
M I N N E A P O L I S
-
-
-
M IN N .
C om bined R esources o v e r $360,000,000.00
Northwestern Banker
October 1929
78
What is the
N orthw
The Purpose of the
NORTHWEST BANCORPORATION
HE Northwest Bancorporation w a s
formed for the mutual benefit of its par
ticipating banks and for the upbuilding of the
communities which they serve. Each bank in
this group operates as a unit, under local man
agement, primarily and always in the interest
of its own community, but all are bound to
gether by interlocking stock ownership and
their interests and aims are mutual. Their vol
untary association in one central organization
gives each bank a share in a financial develop
ment made possible only by a metropolitan or
ganization of commanding size. On broad lines,
they will work in unison for the greater civic,
industrial and agricultural expansion of the
Midwest and Northwest and the prosperity of
its 11,000,000 people. In this way, the Mid
west and Northwest have gained a powerful
financial organization operating in its own
cities and owned and managed by their own
business people to insure their financial inde
pendence.
T
OFFICERS
NORTHWEST BANCORPORATION
est
B
a n c o r p o r a t io n
?
DIRECTORS
F L O U R A N D G R A IN IN T E R E S T S
W A R D A M E S , J R ., F . Pres., Barnes-Ames
Go..........................................................................................D u lu th , M in n .
J U L I U S H . B A R N E S , Grain Exporter ................D u lu th , M .n n .
J A M E S F . B E L L , Pres., General Mills,
In c ............................................................................. M in n e a p o lis, M in n.
J O H N C R O S B Y , Director, General Mills,
In c ............................................................................. M in n e a p o lis, M in n .
F R A N K T . H E F F E L F I N G E R , Pres.,
F.
FI- Peavey di Co ..................................... M in n e a p o lis, M in n .
J O H N S. P I L L S B U R Y , V. Pres.,
Pillsbury Flour Mills Co .............................M in n e a p o lis, M in n .
H E N R Y F . S A L Y A R D S , Pres., Ely, Salyards
Go.................................................................................................D u lu th , M in n .
A . L . S E A R L E , Pres., Searle Grain Co.,
Ltd .......................................................................................... M in n e a p o lis, M in n .
G E O R G E H . S P E N C E R , V. Pres., Consolidated
Elevator Co..................................................................................D u lu th , M in n .
A D A M G. T H O M S O N , Pres., A. D. Thomson
Go................................................................................................. D u lu th , M in n .
L IN S E E D O IL P R O D U C T S
S H R E V E M. A R C H E R , Pres., Archer-Daniels
Midland Co........................
M in n e a p o lis, M in n .
M IN IN G IN T E R E S T S
W . P . C H I N N , Gen’l Mgr., Mining Div., Pickands,
Mather & Co ............................................................................. D u lu th , M in n .
T . F . C O L E , Mining .................................................................... D u lu th , M in n .
E D W A R D C. C O N G D O N , Mining ...........................................D u lu th , M in n .
G E O R G E P . T W E E D , Iron Ore ............................................. D u lu th , M in n .
L IV E S T O C K A N D P A C K IN G
H . G . B L A C K , A s s f. Treas., Armour & Co.......... C h ica go, 111.
F O R D E . H O V E Y , Pres., Stock Yards National
Bank
...............................................................................O m aha, N eb.
A L E X H I G H L A N D , Chairman of Board, Stock
Yards National B ank ............................. S o u th St. P a u l, M in n .
A . G. S A M , President, Live Stock National
Bank .......................................................................... S io u x City, Io w a
J O H N E . W A G N E R , Treas., Cudahy Packing
Go................................................................................... C h icago, Illin o is
P U B L IC U T IL IT IE S
W . B . T . B E L T , Pres., Northwestern Bell
Telephone Co................................................................... O m aha, N eb.
J. E . D A V I D S O N , Pres., Nebraska Power C o.. O m aha, N eb.
A. M . R O B E R T S O N , Vice Pres., Minneapolis
Street Railway Co......................................... M in n e a p o lis, M in n .
R A IL R O A D IN T E R E S T S
R A L P H B U D D , Pres., Great Northern Ry.
Go..................................................................................... St. P a u l, M in n .
H . A . S C A N D R E T T , Pres., Chicago, Milwaukee,
St. Paul & Pacific R y. Co ......................................C h icago, 111.
LAWYERS
E. W . D ecker
J. C. T h o m s o n
E . W . D E C K E R .................. ............................................... President
J. C. T H O M S O N ..................... ■ .Vice President and Gen’l Mgr.
R O B E R T E . M A C G R E G O R ............. Vice Pres, and Treasurer
H . D . T H R A L L ........................ Vice President and Ass’t Treas.
A L E X H I G H L A N D ................ Vice Pres, and A ss’t Gen. Mgr.
E . J . W E I S E R ....................... ...................................... Vice President
T H E O . W O L D ........................ ...................................... Vice President
H A N F O R D M a c N I D E R . . . ...................................... Vice President
D A V I D W I L L I A M S ........... ...................................... Vice Pres'dent
I S A A C S. M O O R E ................ ...................................... Vice President
P H I L I P L . R A Y ................... .................................... Vice President
R O B E R T P . M O R S M A N . . ...................................... Vice President
C L Y D E E . B R E N T O N . . . ...................................... Vice President
G A R D N E R B . P E R R Y . . . . .................................... Vice President
D . R . W E S T ................................................................................. Secretary
W . E . B R O C K M A N . . . .Director Advertising and Publicity
H . H A L L E N B E R G ..................................................... Chief Examiner
J . W . G R O V E S ..................................................... Assistant Secretary
J O H N D E J O N G ................................................ Assistant Secretary
W M . N . J O H N S O N ............................................. Assistant Secretary
G R A N T A N D E R S O N ...................................... Assistant Secretary
W . G O R D O N H E G A R D T ................................ Assistant Secretary
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
October Í929
H O W A R D J. C L A R K , Attorney ..................... D es M oin es, I o w a
A L B E R T C. C O B B , Cobb, Floke, Benson, Krause
& Faegre, Attorneys .................................................... M in n e a p o lis, M in n .
C H A M B E R S K E L L A R , A ttorney ................................ L ea d , S. D .
O S C A R M I T C H E L L , Washburn, Bailey &
Mitchell, Attorneys ................................................. D u lu th , M in n .
E D G A R M . M O R S M A N , J R ., A ttorney ................O m aha, N eb.
A . M cC . W A S H B U R N , Washburn, Bailey <&
Mitchell, Attorneys .............................................. D u lu th , M in n .
INVESTMENTS
M A R S H A L L W . A L W O R T H , Capitalist............ D u lu th , M in n .
F.
C. H U B B E L L , President, F. M. Hubbell Son
and Company ...................................................D es M oin es, I o w a
F R E D E R IC K E. K E N A ST O N ,
Capitalist ............................................................M in n e a p o lis, M in n .
S. L . P R E N T I S S , Pres., The Northern
Corporation ................................................................ W in o n a , M in n .
O L I V E R P . T H O M P S O N , Trustee, The
Thompson T r u s t ............................................... D es M oin es, I o w a
A. C. W E I S S , Investments ......................................... D u lu th , M in n .
LUMBER AND BUILDING MATERIALS
E . W . B A C K U S , Pres., Backus-Brooks
Go............................................................................... M in n e a p o lis,
E . C. F I N K B I N E , President, Finkbine
Lumber Company .............................................D es M oin es,
F . E . K E E L E R , Pres., Mason City Brick <6
Tile Co...................................................................... M a so n C ity,
W . E . M A G N E R , Pres., Cutler-Magner Co.. . .D u lu t h ,
A R T H U R R . R O G E R S , Pres., Rogers Lumber
Co............................................................................... M in n e a p o lis,
H . B . W A I T E , Pres., H . B. Waite Lumber
Co............................................................................... M in n e a p o lis,
M in n .
Iow a
Iow a
M in n .
M in n .
M in n .
79
What the BANCORPORATION
Means to the Northwest
G E N E R A L B U S IN E S S
F R E D B O H E N , Pres., Meredith Publishing
Co................................................................................... D es M oin es, Io w a
N O R M A N B . B L A C K , Publisher, Fargo Forum. F a rg o , N . D .
G A R D N E R C O W L E S , Pres., Register db Tribune
Co ................................................................................... D es M oin es, I o w a
J . H . C O W N IE , Pres., J. H . Cownie C o .. . D es M oin es, I o w a
J O S E P H C H A P M A N , Pres., Donaldson Realty
Co............................................................................. M in n e a p o lis, M in n .
G E O R G E D . D A Y T O N , Pres., The Dayton
Co .............................................................................................M in n e a p o lis, M in n .
C.
L . H E E G A A R D , Pres., Mandan Mercantile
Co.............................................................................................M in n e a p o lis, M in n .
H . J. M c C O N N O N , McConnon db Co ....................................W in o n a , M in n.
C. F . M I C H E L , Pres., La Crosse Refining
Co ..................................................................................... L a C rosse, W is.
The forming of the
Northwest Bancorporation
ushers in a new era for
Midwest and Northwest
banking.
It means that
for the first time a middle
W H O L E S A L E IN T E R E S T S
west and northwest institu
C. O. F O L L E T T , Pres., Sm.th, Follett di Crowl. F a rg o , N . D .
S E T H M A R S H A L L , Pres., Marshall-Wells
tion,
through
its
affiliated
banks, can offer to
Co ....................................................................................................... D u lu th , M in n .
N . F . R U S S E L L , Pres., Bridgeman-Russell
the
business
men
and
industries
of this terri
Co.............................................. . . .................................. D u lu th , M in n .
G E O R G E W . W E L L E S , Pres., Kelly-Howtory
the
service
of
a
great
organization
inde
Thomson Co...............................................................................D u lu th , M in n .
pendent of other financial organizations in
BANKERS
other territories.
W . G . C. B A G L E Y , Pres., First National
Bank ......................................................................M a so n City, I o w a
The pooled resources of the Northwest BanR . E . B A R R O N , Pres., First National Bank. . .M in o t, N . D .
C L Y D E E . B R E N T O N , Pres., lowa-Des Moines
corporation members, amounting to over
Nat’l Bank db Trust Co ................................. D e s M oin es, I o w a
W . H . B R E N T O N , V. Pres., lowa-Des Moines Nat’l
$360,000,000, make it possible for all member
Bank db Trust Co ............................................... D es M oin es, I o w a
G E O R G E W . B U R T O N , Pres., National Bank of
institutions to share in a financial development
La Crosse ..................................................................L a C rosse, W is.
H . B . B U S H N E L L , V. Pres., U. S. Trust Co.. .O m a h a , N eb.
of their communities and the Northwest not
E D W A R D W . D E C K E R , Pres., Northwestern
National Bank ...............................................M .n n e a p o lis, M in n .
heretofore possible.
R . E . D R I S C O L L , Cashier, First National Bank .Lead, S. D .
W . A . D U R S T , Pres., The Minnesota Loan db
By affiliation with the Northwest Bancorpo
Trust Co ...............................................................M in n e a p o lis, M in n .
H . J . F A H N E S T O C K , Pres., First National
ration, member banks are now in a position
Bank .........................................................................W a te r to w n , S. D .
L E E M . F O R D , Pres., Great Falls National
to underwrite bonds and other securities for
Bank .....................................................................G rea t Falls, M ont.
S. S . F O R D , Vice Pres., Great Falls Nat’l
the development of local business enterprises,
Bank ..................................................................... G rea t F alls, M ont.
G . C. F U L L I N W E I D E R , Pres., National Bank of
the development of public utility enterprises,
Huron .............................................................................. H u r o n , S. D .
F . H . G A N N O N , Pres., First Nat’l Bank. . .A b e r d e e n , S. D .
and for municipal and governmental purposes
F R A N K H O R T O N , Pres., First Nat’l Bank. .W in o n a , M in n .
F . A . I R I S H , V. Pres., First National Bank db Trust
on a scale that has never been possible before.
Co...............................................................................................F a rg o , N . D .
L O U I S C. K U R T Z , Chairman of Board, lowa-Des
Greater facilities are available for the manage
Moines Nat’l Bank db Trust Co............... D es M oin es, I o w a
S. M c K E N N A N , Pres., Union Bank db Trust
ment
of estates and trusts, and business men
Co....................................................................................................... H ele n a , M ont.
R . E . M A C G R E G O R , V. Pres., Northwestern
will
now
be able to obtain full lines of credit
National Bank ............................................. M in n e a p o lis, M in n .
H A N F O R D M a c N I D E R , Chairman of Board,
through
their
local banks.
First National B ank ........................................ M ason City, I o w a
W . A . M A H L , Vice Pres., First Nat’l Bank. .W in o n a , M in n.
In addition to pooling their resources, the
E . L . M A T T S O N , Vice Pres., and Trust Officer, Mid
land National Bank db Trust Co .......... M in n e a p o lis, M in n.
banks affiliated with the Northwest Bancorpo
C H A R L E S B . M I L L S , Pres., Midland National
Bank db Trust Co........................................................ M in n e a p o lis, M in nration
.
have also pooled their banking expe
I S A A C S. M O O R E , Pres., First db American
Nat’onal Bank ......................................................... D u lu th , M in n .
rience and financial genius. The experience
L . T . M O R R I S , V. Pres., Citizens National
Bank
..................................................................... W a te r to w n , S. D .
gained by these successful institutions is aug
R O B E R T P . M O R S M A N , Pres., United States Nat’l
Bank and U. S. Trust Co.......................................O m aha, N eb.
mented by that of the directors— all outstand
C. A . P A R K E R , V. Pres., First National
Bank ....................................................................... M a so n City, I o w a
ingly successful men.
L Y N N P E A Y E Y , Pres., Security National Bank db
Trust Co ................................................................................. .F a r ib a u lt, M in n . Every citizen and every community inter
P H I L I P L . R A Y , Exec. V. Pres., First cb American
ested in the growth and prosperity of the
Nat’l Bank ...................................................................D u lu th , M in n .
C A M D E N R A Y B U R N , V. Pres., National Bank of
West and Northwest and the development of
Huron ............................................................................ H u r o n , S. D .
A L B E R T J. R O B E R T S O N , V. Pres., Iowa-Des Movnes
industry, agriculture and their own pros
Nat’l Bank db Trust Co.................................. D e s M oin es, I o w a
W . Z . S H A R P , Pres., Security Nat’l Bank. . S io u x F a lls ,S .D .
perity will see in the Bancorporation and the
J. C. T H O M S O N , V. Pres, db Gen’l Mgr., Northwest
Bancorporation .............................................. M in n e a p o lis, M in n.
financial independence which it insures a
H . D . T H R A L L , V. Pres., The Minnesota Loan
db Trust Co............................................................M in n e a p o lis, M in n .
real step forward. Through their affiliation
E . J. W E I S E R , Pres., First National Bank dc Trust
C o . ......................................................................................... F a rg o , N . D .
all member banks and their communities be
D . R . W E S T , V. Pres., The Minnesota Loan
db Trust Co..........................................................M in n e a p o lis, M in n .
come “ working partners” with the other
D A V I D W I L L I A M S , Chairman of Board,
First db American National B ank ................. .D u lu th , M in n .
leading cities and financial institutions of
T H E O D O R E W O L D , V. Pres., Northwestern
National Bank ............................................ M in n eap olis, M in n .
this territory to build a greater Northwest.
G. H . Y A T E S , V. Pres., U. S. National Bank. .O m a h a , N eb.
NORTHWEST BANCORPORATION
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Federal Reserve Bank of St. Louis
MINNEAPOLIS, MINNESOTA
Northwestern Banker
October 1929
80
Io
w a ’s
Largest
Ba n
k
In c r e a s e s Fa c il it ie s
The Iowa-Des Moines National Bank &
Trust Company, with resources of approxi
mately $42,000,000, this month announced its
affiliation with the Northwest Bancorporation.
This move gives to this bank, which was al
ready the fourth largest in the Northwest,
the added strength and facilities of 38 other
strong banks and trust companies.
The Iowa-Des Moines National Bank &
Trust Company is a consolidation of the Iowa
National Bank, established in 1875, and the
Des Moines National Bank, established in 1881.
This consolidation, approved by the stock
holders of the two banks late in August, will
bring together two of the oldest and best
known banks in the Midwest.
Clyde E. Brenton, President of the IowaDes Moines National Bank & Trust Company,
in a public statement made at the time of
affiliation with the Northwest Bancorporation,
said that this latest step in a program of ex
pansion was taken because he and his asso
ciates, after giving long and mature consider
ation to the proposal, became fully convinced
of the advantages that will accrue to Des
Moines and the whole state of Iowa through
association with this group of leading banks.
This association of strong, independent
banks and trust companies in the leading cities
of the Midwest and Northwest,” said Presi
dent Brenton, “ will allow each bank to par
ticipate in a financial development that will
bring to Des Moines the united strength, sup
port and facilities of the affiliated banks. In
addition it furnishes the combined ability and
experience of a group of men who have suc
cessfully conducted leading banks of the Mid
west and Northwest for many years.”
Des Moines is the largest city in Iowa,
America’s greatest food-producing state. The
only city in Iowa with a population over
100,000, it is the geographical, industrial and
financial center of the state. It is also one of
the largest insurance centers in the West and
one of the six largest publishing centers of the
United States.
Over 400 factories in Des Moines produce
an annual volume of business exceeding one
hundred million dollars. Its annual payroll
exceeds $74,679,841. The network of railroads
radiating out of Des Moines make it the job
bing center of the state, with over one hundred
jobbing houses.
Iowa produces almost five million tons of
coal a year. Its agricultural income exceeds
$713,000,000 annually. Approximately threefifths of its population of 2,419,927 people
live in cities and towns, which are manufac
turing over $760,000,000 worth of products
a year.
As the center of this rich and rapidly de
veloping territory, Des Moines is more and
more facing new problems of industrial expan
sion. To meet these problems, it needs new
banking facilities, unlimited resources and the
most expert financial counsel. The Iowa-Des
Moines National Bank & Trust Company be
lieves that through its affiliation with the
Io w a -D es Moines National
Bank &T rust Co m pan y
A F F IL IA T E D W ITH
N O RTH W E ST BAN CORPO RATI O N
Northwestern Banker
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Federal Reserve Bank of St. Louis
October 1929
81
f+H-
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Federal Reserve Bank of St. Louis
Northwest Bancorporation it not only in
creases the financial resources available to the
people of this state bnt will also be able to
give its customers improved, complete banking
service.
Louis C. Kurtz, Chairman of the Board of
Directors of the Iowa-Des Moines National
Bank & Trust Company, explained that the
plan of organization and operation of the
Northwest Bancorporation provides that
“ each institution in the group shall continue
to operate as a unit under the management of
local officers and directors in the interests of
its own community, but that all are bound
together by interlocking ownership.”
This
plan, he pointed out, allows each stockholder
to share in the profits of the entire group.
W. H. Brenton, Vice President, emphasized
the improved service which member banks will
be able to render by virtue of greater strength
through a centralized holding company.
“ With this united strength,” said Mr. Bren
ton, ‘ ‘ each member bank will be able to render
a more complete and comprehensive service to
their respective communities, pooling their
resources and man-power to serve the financial
needs of the Midwest in a more complete,
stable and economical w ay.”
Herbert L. Horton, Vice President, com
mented upon the significance of this move to
the banks and bankers of Iowa. Mr. Horton
said, “ This announcement will undoubtedly
be of great interest to bankers state-wide. All
recognize the rapidly growing trend and are
closely watching the developments of group
banking. The sound, constructive methods of
expansion and operation which are being used
by the Northwest Bancorporation afford an
especial appeal to all bankers throughout our
section. Through our recent merger and this
affiliation there has been established in Iow a’s
largest and capital city a banking institution
of unusual size and stability with broad con
nections which will provide for the banks of
the state a desirable place to concentrate their
reserves. ’ ’
Albert J. Robertson, Vice President in
charge of the Trust Company Division of the
consolidated bank said: “ The uniting of
Iowa’s largest bank with other leading banks
in the Northwest brings together, on one hand,
a group of men who have long enjoyed pleas
ant business relationships and, on the other
hand, it means a union of one of the principal
agricultural states with the manufacturing,
mining, milling and live stock interests of
Minnesota, Iowa, the Dakotas, Nebraska and
Wisconsin. With the union of these diversi
fied interests directed toward a common goal,
the Northwest enters a new and important
phase of development that brings us closer to
a more permanent era of prosperity.
“ Service is the biggest consideration today
in every line of business endeavor. As the
states in the Northwest grow, banking needs
will increase. Unless we in the Northwest pro
vide for this increased need, eastern interests
will do it for us. The Northwest Bancorpora
tion is composed of financial institutions man
aged by men whose life-long interests have
been in these Northwest states, and who are
vitally concerned in the future prosperity of
industry and agriculture here. I regard this
decision of our stockholders to unite with this
group the most important financial develop
ment in Iowa for many years.”
Io w a -D es Moines National
Bank & T r u s t Com pany
a f f il ia t e d
w it h
N O R T H W E S T B A N C O R P O R A T IO N
Northwestern Banker
October 1929
OFFICERS
Louis C. Kurtz
Clyde
E.
Brenton
and
DIRECTORS
A. J. Huglin
W . H. Brenton
Albert J. Robertson
Officers
D irectors
President Brenton announced
that there will be no change in
officer or directorate personnel,
but that local officers and di
rectors would assume additional
duties in connection with the
management of the Northwest
Bancorporation.
G e o . N . A y r e s . Vice President,
Central Life Assurance /Society
B o e k e n h o f f ...........Pres
ident, Boekenhoff Cafe Company
F r e d B o h e n ................. President
Meredith Publishing Company
H.
C l y d e E . B r e n t o n ......................
................... President, lowa-
L ouis C. K u r t z ,
Chairman of the Board
Cl y d e
E. B ren ton ,
President
Herbert L. Horton
W . H. B renton,
J.
Executive Vice President
D E P A R T M E N T OP C O M M E R C IA L B A N K IN G
A n d r e w J. H u g l i n ............................... .................. Vice
G e o . E . P e a r s a l l ...................................................... V ce
A . J. W a r n k e .................................................. Ass’t Vice
O w e n P . M c D e r m o t t ................................ Ass’t V.ce
President
President
President
President
J. R. Capps
Des Moines National Bank
<& Trust Company; Pres
ident, Brenton Brothers, Inc.
W . H . B r e n t o n ................... Vice
President, lowa-Des Moines
National Bank di Trust
Company; Secretary-Treasurer, Brenton Brothers, Inc.
H o w a r d J. C l a r k ................. Attorney
R o s s J. C l e m e n s ..................................................................................
.................. President, Standard Glass and Paint Company
G a r d n e r C o w l e s . President, Register and Tribune Company
J o h n C o w l e s ..........................................................................................
. .Associate Publisher, Des Moines Register and Tribune
J . H . C o w n i e .......................... President, J. II. Cownie Company
E. C. F i n k b i n e .......................................... President, Finkbine
D E P A R T M E N T OF B A N K S ' A N D B A N K IN G
H e r b e r t L . H o r t o n ................................................ Vice President
Lumber Company; President, Warfield-Pratt-Howell
■J. R . C a p p s .......................................................................................... VicePresidentCompany; President, Green Bay Lumber Company
C l a r e n c e A . D i e h l ......................................................................... VicePresident
W . J. G o o d w i n . . President, Goodwin Tile <& Brick Company
E . W . J o n e s ..........................................Assistant Vice President
J. B . G r e e n . .President, Des Moines Stove Repair Company
O. M . G a r r e t t ....................................................... Assistant Cashier
W m . C. H a r b a c h ..........................................................................Capitalist
J o h n H . H o g a n ............................................................. Vice Pres
D E P A R T M E N T OP B A N K A D M IN IS T R A T IO N
ident, Continental Illinois Bank <£ Trust Co., Chicago
G e o . D . T h o m p s o n .................................................................. Cashier
H e r b e r t L . H o r t o n .................................................................. Vice
H a r r y G. W i l s o n .......................................... Ass’t Vice President
President,
lowa-Des Moines National Bank <& Trust Co.
R i c h a r d H . C o l l i n s ................................... Ass’t Vice President
F. C. H u b b e l l . .President, F. M. Hubbell Son and Company
J a m e s B u r s o n ........................................................................... AssistantCashier
A
n
d
r
e
w
J
.
H
u
g l i n .......................................................Vice Pres
T h o s . J. H y n e s ........................................................................ AssistantCashier
ident, lowa-Des Moines National Bank de Trust Company
B U S IN E S S D E V E L O P M E N T D E P A R T M E N T
L o u is C. K u r t z ....................................................................... Chair
W i n f i e l d W . S c o t t .............................Mgr., Ass’t Vice Pres.
man of Board, lowa-Des Moines National Bank
R . L . C h a s e , J r ...............................................Ass’t Vice President
<£• Trust Company; President, L. H. Kurtz Company
C R E D IT D E P A R T M E N T
F. H . L u th e
E d w i n F . B u c k l e y ...................................Mgr., A ss’t Vice Pres.
M. M a n d e l b a u m ............. President, J. Mandelbaum and Sons
J o s . M u e l h a u p t ................ President, Central Service Company
P . C. D A V I S ....................................................................................... A u d ito r
G e o . E . P e a r s a l l ............................................................. Vice Pres
C L Y D E H . D O O L I T T L E ............................................................ G e n e ra l C ou n sel
ident, lowa-Des Moines National Bank d Trust Company
T R U S T C O M P A N Y D IV IS IO N
C h a s . A . R a w s o n . .President, Iowa Pipe and Tile Company
A l b e r t J. R o b e r t s o n .....................................................................VicePresident
A l b e r t J. R o b e r t s o n .....................................................Vice Pres
ident, lowa-Des Moines National Bank d Trust Company
BOND D EPARTM EN T
R a l p h E . R o l l i n s .............................................................................
L e l a n d J. A n d e r e c k .......................................................... Manager
. . . .President and Treasurer, Rollins Hosiery Mills, Inc.
S h e r m a n W . F o w l e r .......................................... Asst. Vice Pres.
W . W . S e a r s .................. President, Sears Automobile Company
A r t h u r H . K e y e &....................................................... Ass’t Cashier
M . S h l o s s ............... President, Lederer, Strauss and Company
TRUST DEPARTM ENT
E . R . S t o t t s ...................................President, Miller Sanitary
J a m e s F . H a r t ..........................................
............. Trust Officer
Laundry Company; Vice President, Dodd d Struthers
V i c t o r H . P u l i s ....................................
. A ss’t Trust Officer
O l i v e r P . T h o m p s o n ...................Trustee, The Thompson Trust
W . F . H o w e l l ..........................................
. Ass’t Trust Officer
C a r l W e e k s ............................... President, The Armand Company
M ORTGAGE LOAN D EPA RT M E N T
F r e d W . W e i t z ....................................................... Vice President
A . L . K r e i d l e r ........................................
. Manager
Century Lumber Company; Charles Weitz’ Sons
Io w a -D es Moines National
Bank 6-Trust Co m pan y
a f f il ia t e d
w it h
N O R T H W E S T BANCORPORATIO N
Northwestern Banker
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Federal Reserve Bank of St. Louis
October Î929
83
Fir s t N
a t io n a l
Pio n e e r
in
of
Ban
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
ason
C
it y
c o r p o r a t io n
.<>---------------------------------------------------------------------------- —— ■— —
n p H E First National Bank of Mason City,
T with resources in excess of $10,000,000,
was the first of Iowa’s strong financial insti
tutions to join forces with the Northwest
Bancorporation.
This hank, the largest in northern Iowa,
was established in 1869. It has long been
identified with the MacNider interests, Mr.
Hanford MacNider being Chairman of the
Board. Mr. Willis G. C. Bagley, President, is
also president of the Iowa Bankers Associa
tion, and is a strong supporter of the modern
trend of banking toward group and chain
operation for greater efficiency and service.
Mason City is the center of one of the most
productive agricultural areas in the world.
In addition to the great volume of business
arising from agriculture, the city is now be
coming a center of manufacturing and its in
creased industrial activities are bringing a
new national prominence.
Within the Mason City territory, which in
cludes 14 Iowa counties, there are 28,089
farms with the staggering annual income of
$98,311,500, and industrial plants employing
5,325 people, with an annual output valued
at $56,672,466 and an annual payroll of
$12,258,836.
The rapid development of agriculture and
industry in this district presents new problems
in financing and requires new facilities to
handle business expansion. The directors of
the First National Bank believe that through
its affiliation with the Northwest Bancorpo
ration it is launched on a program of expan
sion and has increased its facilities for service
M
---------------------------------------------------------------------,<>-
to meet these needs. This affiliation enables
it to bring to the people of Mason City and
the surrounding territory the experience, ad
vice and combined resources of many of the
leading banks and bankers of the Midwest; and
Northwest.
This institution, like every one of the Bancorporation group, retains its local manage
ment and will continue to be operated in and
for the best interests of its local customers.
and
O F F IC E R S
D IR E C T O R S
H anford MacNider
W illis G. O. Bagley
Officers
H a n f o r d M a c N i d e r ..................... Chairman o f the B oa rd
W i l l i s Gt. C . B a g l e y ______________________ _______ P resid en t
C a r l A . P a r k e r ....................................................... V ice P resid en t
F r e d E . K e e l e r _______ _________ ______ ______ V ice P resid en t
R o b e r t P . S m i t h ___ ______ _____ ______ ______ V ice P resid en t
H a r o l d Y . B u l l ............................................ . ....... ............ Cashier
H a r r y C . F i s h e r ................. ...................... .A s sis ta n t Cashier
W i l l i a m W . B o y d .................... ................. ....A ssista n t Cashier
R o y B . J o h n s o n ........................... ..................A ssista n t Cashier
R a l p h E . W i l e y ............................... ...............A s sis ta n t Cashier
D irectors
W i l l i s G. O. B a g l e y ................ President, First National Banlc
A l l a n l 1. B e c k ....................................................................... Real Estate
L . W . D e n i s o n ............................................................................. Capitalist
P . J. H a n l o n .................. President, Peoples Gas <£ Electric Co.
F r e d E . K e e l e r ................ Vice President, First National Bank
H a n f o r d M a c N id e r ..........................................................................
........................ Chairman of the Board, First National Bank
C a r l A . P a r k e r ..............Vice President, First National Bank
E a r l S m i t h ............................................ Smith <£ Feeney, Attorneys
R o b e r t P . S m i t h ............. Vice President, First National Bank
F i r s t Na t i o n a l Ba n k
MASON CITY
IO W A
A F F IL IA T E D W ITH
N O R T H W E S T BANCORPORATION
Sorthwestern Banker
October 1929
84
-e>-
L iv e S t o c k
F o rces
N a t io n a l
w it h
B a n k J o in s
B a n c o r p o r a t io n
The Live Stock National
Bank of Sioux City, Iowa,
is another one of the lead
ing Midwest banks to an
nounce its affiliation with
the Northwest Bancorpora
tion.
This bank, one of the important live stock
banks of the West, was organized in 1895 for
the purpose of financing the live stock in
dustry centering around Sioux City. It is
capitalized at $200,000, and has surplus and
undivided profits of $130,813. Deposits are
$5,750,325, and resources are $6,306,204.
In announcing this important step in a
program of expansion, Mr. A. G. Sam, Presi
dent of the Live Stock National Bank, said:
‘ ‘ It is a great pleasure for me to announce the
affiliation of the Live Stock National Bank
with the Northwest Bancorporation. Through
this union of interests, our institution will be
of greater service to our many local customers
and bank correspondents. ’ ’
This is the fourth live stock bank to affiliate
with the Northwest Bancorporation.
The
other three live stock banks a re: The Stock
Yards National Bank of Omaha, with re
sources of $11,169,482; the South Omaha Sav
ings Bank, with resources of $1,094,310, which
also brought with it the Cattle Feeders Loan
Company, Inc., a company engaged in financ
ing the live stock industry in the Omaha terri
tory; and the Stock Yards National Bank of
South St. Paul, Minnesota, with resources of
$4,810,920.
The Live Stock National Bank will continue
under the same management that has hereto
fore served its customers.
H.
A. G. Sam
B.
Scott
Officers
A. G. Sa m ...................................................... President
H. B. S c o t t . .. ____________ _____________ _______ Vice President
C.
L.
M. A.
F r e d r i c k s e n ......................................... .........................Cashier
W i l s o n .................................. .................... Assistant
W . G . N e l s o n ..................... ............................. ...Assistant
Cashier
Cashier
D irectors
H . G. B l a c k ............................................................................................
................... Asst. Ireas., Armour <& Company, Chicago, III.
T . J. D e b ....................................................................................................
. .General Manager, Armour <£ Company, Sioux City, la.
C. L . F r e d r i c k s e n ............. Cashier, Live Stock National Bank
F . A . G a l e . . . .Manager, Swift di Company, Sioux City, Iowa
S. M . J a s p e r ...................................Swift é Company, Chicago, III.
A . G . S a m .............................President, Live Stock National Bank
H . B . S c o t t ........... Vice President, Live Stock National Bank
G. F . S i l k n i t t e r . . . .President, Sioux City Stock Yards Co.
Live St o c k Nation al Ban k
SIOUX
C IT T /
ïssbr
IOWA
A F F IL IA T E D W ITH
N O RTH W E S T BAN CORPORATI O N
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
October 1929
85
Mr. B. W. Decker, Presi
dent of the Northwestern
National Bank of Minne
apolis and of the Northwest
Bancorporation, said : “ We
are particularly gratified to
have the Live Stock National
Bank come into this group. It brings together
the leading live stock banks in three of the
important live stock markets of the West and
Northwest.
“ Statistics show that approximately 18,000,000 head were received at these three mar
kets in 1928. The live stock industry is on the
upgrade and, with the increase in production,
increased banking facilities will be required.
We believe that the association of these live
stock banks in the Northwest Bancorporation
will provide these facilities and that this in
dustry as a whole will reflect the close associa
tion of a group of banks who are mindful and
sympathetic to the needs of our basic indus
tries.”
Mr. H. Gb Black, Assistant Treasurer of
Armour and Company and a Director of the
Northwest Bancorporation, said, “ From the
moment that the Northwest Bancorporation
announced its group banking plan last Janu
ary, we have carefully followed its growth
and have become more and more impressed
with the soundness of the plan and the possi
bilities it affords for building up this great
territory.
“ It affords us great pleasure to have the
opportunity of becoming definitely affiliated
with the Northwest Bancorporation and its
splendid group of banks, and we are sure that
this affiliation will result in closer cooperation
between the producers and the packers. ’ ’
Mr. John E. Wagner, Treasurer of Cudahy
Packing Company, Chicago, and also a Direc
tor of the Northwest Bancorporation, said,
“ I am very much gratified to learn that the
Live Stock National Bank of Sioux City, Iowa,
l iv e
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
sto ck
has become affiliated with
other leading banks and
trust companies in the
Northwest Bancorporation.
“ The live stock industry
is becoming an increasingly
large source of revenue to
the Northwest. Statistics show that in 1928
live stock returned to each individual farmer
in the Northwest an income 40% greater than
1922. These figures show the importance of
the live stock industry to the Northwest, and
likewise the growing importance of sound live
stock banks with sufficient strength and re
sources with which to properly finance this
important basic industry.
“ The officers and directors of the Live Stock
National Bank should be congratulated, be
cause they have not only added to the bank’s
facilities, but have increased its capacity for
service. ”
Mr. S. M. Jasper, Swift and Company, Chi
cago, Director of the Live Stock National
Bank, said, “ The affiliation of the Live Stock
National Bank with the Northwest Bancorpo
ration forges another strong link in the finan
cial chain supporting the live stock and pack
ing industries. This institution has materially
increased its facilities for service in building
up the bright future this communty has be
fore it. The Swift interests agreed to this
plan only after feeling satisfied that the
promise of carrying on well and successfully
the present policy of building up the live stock
and agricultural resources of this community
was assured, which program we have fostered
since the organization of this bank. This
assurance lies in the fact that the Live Stock
National Bank will have at its command the
combined judgment, ability and experience of
this powerful organization, represented by
this large group of successful leading bankers
and business men bespeaking sound adminis
tration and success for this institution. ’ ’
N a t i o n a l Ba n k
SIOUX CITY
IOWA
A F F IL IA T E D W ITH
N O R T H W E S T BANCORPORATION
Northwestern Banker
October 1929
86
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Si
/lis is one of a series of advertisements in a national program of adver
tising by the Northwest B ancorporation. This advertisement appeared in
Nation s Business for October, reaching the business executives of Am er
ica and carrying to them a message of strength of the Bancor por ation
and its importance to the territories served by its affiliated institutions.
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
October 1929
»
87
38 Str o n g ban k s an d trust
COMPANIES.......
already joined
H orthw ests powerful Banking Institution
Banks in all parts of the Northwest are rapidly becoming affiliated with
the Northwest Bancorporation. Among them are many of the leading
financial institutions of this territory. The latest list of banks and trust
companies affiliated with the Northwest Bancorporation is given below.
M IN N E SO TA
NORTH DAKOTA
Northwestern National Bank and,
Affiliated Banks in Minneapolis
M IN N E A P O L IS
FARGO
JAM ESTO W N
Minnesota Loan and Trust Company
M IN N E A P O L IS
First and American National Bank
DULUTH
SOUTH D A K O T A
First National Duluth Company
DULUTH
Security National Bank & Trust Company
F A R IB A U L T
FERGUS FA LLS
Fergus Falls National Bank
DEADW OOD
OW ATONN A
Security State Bank
HURON
Stock Yards National Bank
First National Bank
R A P ID C IT Y
S T U R G IS
IO W A
D E S M O IN E S
Iowa-Des Moines National Bank <£ Trust Co.
M ASO N C IT Y
First National Bank
Citizens National Bank
First Nat'onal Bank
LA CROSSE
OMAHA
United States Trust Company
OMAHA
Stock Yards National Bank
OMAHA
South Omaha Savings Bank
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
W ATERTOW N
W ISC O N SIN
NEBRASKA
United States National Bank
First National Bank
Commercial National Bank
W ATERTOW N
Livestock National Bank
OMAHA
First National Bank
National Bank of Huron
LEAD
The First National Bank
W IN O N A
First Nat'onal Bank
ABERDEEN
First National Bank
S O U T H ST. P A U L
Security National Bank
S IO U X F A L L S
M OORHEAD
S IO U X C IT Y
First National Bank
Citizens National Bank
W AHPETON
Midland National Bank <£■ Trust Company
M IN N E A P O L IS
James River National Bank
M IN O T
The Minnesota Company
M IN N E A P O L IS
First National Bank <£ Trust Company
National Bank of La Crosse
MONTANA
G REAT FALLS
HELENA
Great Falls National Bank
Union Bank and Trust Co.
Northwest B ancorporation
M IN N E A P O L IS
-
_
_ MINN.
C om bined R esources o v e r $360,000,000.00
Northwestern Banker
October 1929
D O IT N O W !
OU
can
reach
and
in flu e n c e
th e
banks
and
ban k ers
of
th e
r ic h e s t t e r r it o r y in th e w o r l d — th e p r o s p e r it y o f w h ic h is e s s e n tia l
to th e e c o n o m i c s t a b ilit y o f A m e r ic a — t h r o u g h th e u se o f t h r e e
o u t s t a n d in g h a n k in g p u b lic a t io n s .
E a c h is a D e P u y P u b l i c a t i o n .
E a c h is b e in g d e v e lo p e d b y a p e r s o n a l-s e r v ic e o r g a n iz a t io n in d a ily c o n t a c t
w it h its t e r r it o r y .
E a c h in d i v i d u a l p u b l i c a t i o n a n d th e s e m a g a z in e s as a
g r o u p o f fe r th e s tr o n g e s t, c o n c e n t r a t e d b a n k e r s c ir c u la t io n o b t a in a b le in
th is t e r r it o r y .
Central Western Banker
Omaha
Northwestern Banker
Des Moines
Mid Western Banker
Milwaukee
Iowa Bank Directory
Des Moines
B u s in e s s is g o o d i n th is g re a t s e c t i o n !
In s t it u t io n s o f a ll v a r ie tie s
fin d th e S tates c o v e r e d b y th e D e P u y P u b lic a t io n s a fie ld o f in c r e a s in g
p r o fit s !
T h e s u b s c r ib e r s o f th e s e
p u b lic a t io n s
s h o u ld
r e c e iv e
in s ta n t
c o n s id e r a t io n f r o m a ll lin e s o f b u s in e s s — f r o m th e c it y b a n k s e e k in g n e w
c o r r e s p o n d e n t s a n d in t e r e s t e d in k e e p i n g
t h e ir
presen t
c lie n t s — f r o m
in v e s t m e n t h o u s e s w h ic h r e c o g n iz e th e b a n k as o n e o f th e la r g e s t p u r c h a s e r s
o f b o n d s a n d a n a ll im p o r t a n t f a c t o r t h r o u g h d a ily c o n t a c t w ith d e p o s it o r s
in th e sa le o f m a r k e t s e c u r it ie s a n d f r o m a d v e r t is in g a g e n c ie s a n d n a t io n a l
a d v e r tis e r s w h o s e s e r v ic e s o r p r o d u c t s a re e it h e r b o u g h t d ir e c t ly b y b a n k s
o r fin a n c e d t h r o u g h b a n k s .
A l l o f th e s e w i l l fin d th is b a n k e r a u d ie n c e a
v a lu a b le g r o u p to c u lt iv a t e .
DO IT N O W !
CLIFFORD DE PUY
Publisher
DE PUY PUBLICATIONS
GERALD A. SNIDER
Associate Publisher
D E S M O IN E S — O M A H A — M IL W A U K E E
MORTIMER I. STEVENS
Vice-President
Milwaukee
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
WM. H. MAAS, Vice-Pres.
1221 First Nat’ l Bank Bldg.
Chicago
October 1929
FRANK P. SYMS, Vice-Pres.
25 West 45th Street
New York
FRANK S. LEWIS, Manager
840 Lumber Exchange Bldg.
Minneapolis
89
spoke o f the advantages that will accrue
to Sioux City and the live stock industry
through affiliation with this association of
strong banks.
10 WA
SECTION
“ This plan,” he said, “ allows each
affiliated bank to participate in a financial
development that will bring to Sioux City
the united strength and support and facili
ties o f the affiliated banks, as well as the
combined ability and experience o f a
group o f men who have successfully con
ducted leading banks o f the Northwest
fo r many years.”
Officers Iowa Bankers
Association
P r e s id e n t ..................... W . G. C. B a g le y
M a so n C ity
V i c e P r e s id e n t ................ C. R . W o o d e n
C e n te rv ille
T r e a s u r e r .......................C. T. S im m on s
B u rlin g to n
W.
G. C. B A G L E Y
P r e s id e n t
S e c r e ta r y
.....................F r a n k W a r n e r
D es M oin es
FRAN K W ARNER
S e c r e ta r y
Sioux City Bank Affiliates With
Bancorporation. Group
G. SAM, president o f the Live
The Live Stock National Bank, one of
Stock National Bank at the Sioux
the leading live stock banks o f the West,
^ City, Iowa, stockyards, recently was organized in 1895 fo r the purpose
announced the bank’s affiliation with other
o f financing the live stock industry center
leading banks and trust companies in the
ing around Sioux City. It is capitalized
Northwest Bancorporation, a $75,000,000
at $200,000 and has surplus and undi
institution with headquarters in the
vided profits o f $130,813. Deposits are
Northwestern bank building in Minneap
$5,750,325 and resources are $6,306,204.
olis, Minnesota.
In announcing this important step in a
This is the fourth live stock bank to
program of expansion, Mr. Sam said:
join this important group o f financial in
“ It is a great pleasure fo r me to an
stitutions located in the leading cities of
nounce the affiliation o f the Live Stock
National Bank with the Northwest Banthe West and Northwest.
corporation. Through this union of in
In August the Stack Yards National
terests our institution will be in a position
Bank, with resources o f $11,169,482, and
the South Omaha Savings Bank, with re to be o f greater service to our many local
customers and bank correspondents. No
sources o f $1,094,310, o f Omaha, affiliated,
and more recently the Stock Yards Na change in management is anticipated, and
tional Bank o f South St. Paul, Minne the same officers who heretofore served our
sota, with resources o f $4,810,920, an customers will continue to do so.”
H. B. Scott, vice president o f the bank,
nounced its union with this group.
A
The combined resources o f live stock
banks now affiliated in the Northwest Bancorporation amount to $23,380,916.
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Federal Reserve Bank of St. Louis
A. Gl. SAM
CARL FREDERICKSEN
E.
W . Decker, president o f the North
western National Bank and o f the North
west Bancorporation, said: “ W e are par
ticularly gratified to have the Live Stock
National Bank come into this group. It
brings together important live stock banks
in three o f the important live stock mar
kets o f the West and Northwest. Omaha,
South St. Paul and Sioux City are the
natural markets for most o f the live stock
produced in the territory served by the
Northwest Bancorporation.
Statistics
show that approximately 18,000,000 head
were received at these three markets in
1928. The live stock industry is on the
upgrade and, with the increase in produc
tion, increased banking facilities will be
required. We believe that the association
o f these live stock banks in the Northwest
Bancorporation will provide these facili
ties and that this industry as a wffiole will
reflect the close association o f a group o f
bankers who are mindful and sympathetic
to the needs o f our basic industries.”
S. M. Jasper, o f Swift and Company, o f
Chicago, a director o f the Live Stock Na
tional Bank, said:
“ The affiliation o f the Live Stock Na
tional Bank with the Northwest Bancor
poration forges another strong link in the
financial chain supporting the live stock
and packing industries. With its asso
ciated banks throughout the Middle West,
II. B. SCOTT
Northwestern Banker
October 1929
90
now members of the Northwest Bancorporation, this institution materially in
creases its facilities for service in building
up the bright future this community has
before it.
“ The Swift interests agreed to this plan
only after feeling satisfied that the
promise of carrying on well and success
fully the present policy o f building up the
live stock and agricultural resources of
this community was assured, which pro
gram we have fostered since the organiza
tion o f this bank.
Officers o f the Live Stock National
Bank are:
Mr. Sam, president; Mr. Scott, vice
T
1
president; C. L. Fredericksen, cashier;
M. A. Wilson, assistant cashier; W. G.
Nelson, assistant cashier.
Directors o f the bank are: Mr. Black,
assistant treasurer o f Armour and Com
pany, o f Chicago; T. J. Dee, manager of
Armour and Company in Sioux City; C.
L. Fredricksen, cashier, Live Stock Na
tional Bank ; F. A. Gale, manager o f Swift
and Company in Sioux City; Mr. Jasper,
o f Swift and Company, o f Chicago; Mr.
Sam, president, Live Stock National
Bank; Mr. Scott, vice president, Live
Stock National Bank; G. F. Silknitter,
president, Sioux City Stock Yards Com
pany.
le
1
1""-i A
j U n i i i li c i
N a ti» o n a l
The afternoon was devoted to sports
and games. A baseball game between the
bankers o f Burlington and bankers from
the surrounding towns resulted in the
bankers from the smaller towns defeating
the Burlington nine by the score o f 3 to
2 in seven hard fought innings.
Clarence Simmons, vice president of
the First Iowa State Trust & Savings
Bank of Burlington took active charge of
the contests and entertainment for the
ladies. There was a golf putting contest
with three golf balls as a prize for the
winner; a discus throwing contest with a
box o f bridge tallies and score books as
a prize; an adding contest with a fine
box o f stationery as a prize. The most
exciting and interesting contest o f the
afternoon was a bandit contest. A lifesized dummy was provided as the bandit
and it was explained that the men were
supposed to fight bandits with guns but
that it was felt that the ladies might do
better with a more familiar weapon so
they were provided with rolling pins. The
results o f the contest proved that the
women could certainly make it unpleasant
fo r any bandit who tried to hold up a Des
Moines county bank.
D^
J>an k
The after-dinner program was presided
over by F. L. Houke, president o f the Des
Moines County Bankers Association. J.
E. Berry, cashier o f the Citizens State
Bank o f Mediapolis, in a clever and hu
morous way welcomed the bankers to
Mediapolis.
H sta
■nil "SI
1"H !'0
\\ m
’Wìffll
iw
Alw ays
at Your Service
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
The annual county picnic and banquet
o f the Des Moines County Bankers Asso
ciation was held at the Country Club at
Mediapolis on the afternoon and evening
o f Wednesday, September 18. There were
about one hundred and fifty officers, di
rectors and employes and their wives in
attendance representing the thirteen bank
ing institutions in the county.
A t six-thirty a full course dinner was
served by the ladies o f the Presbyterian
church o f Mediapolis.
|A\
11«
i
!# /
Vi# y
Northwestern Banker
Annual Picnic
October 1929
For Fifty Years
Nineteen hundred twenty-nine is the
fiftieth anniversary o f the organization of
the First National Bank o f Hull, Iowa.
This bank was organized in 1879 by Da
vidson Brothers who were pioneers in the
early history o f Hull— then Pattersonville
— as a private bank. It was changed to
the Bank o f Pattersonville in 1886, later
under state supervision, and later to Bank
o f Hull when the name o f the town was
changed, and in 1898 the law being
changed and requiring the name “ State”
in the corporation name, the name was
changed to the State Bank of Hull, under
which name it continued until 1903, when
it was nationalized and the name was
changed to the First National Bank of
Hull.
91
County Shoot
Thirty-two members o f the Buena Vista
County, Iowa, Vigilance Committee par
ticipated in the most enthusiastic rifle and
pistol shooting contest in the history of
the organization, at the Renshaw hill
range recently.
Ed Sundholm, o f Albert City, won first
prize in the rifle contest, making a score
o f 121. Jack Liercke, o f Storm Lake, was
second, scoring 119, and Carl Kjolhede, o f
Newell, third, scoring 113. 0 . D. Peter
son, o f Marathon, took high honors in the
pistol shooting, with a score o f 86. Clyde
Stewart, o f Storm Lake, was second, scor
ing 82, and Ed. Sundholm, o f Albert City,
was third, scoring 78.
Every town in the county with the ex
ception o f Linn Grove was represented in
the contest. The shooting began at 9
o ’clock in the morning and wasn’t com
pleted until 7 o’clock in the evening.
The rifle contest consisted o f 200 yards
range at slow fire. Each contestant shot
10 rounds standing, 10 rounds sitting and
10 rounds prone. The pistol event was
25 yards, slow fire, with a 4-inch bull’s
eye. Prizes o f $10 fo r first place, $5 for
second and $3 fo r third were given in both
classes o f shooting.
in the county 'when he arrived and ran a
real estate and abstract business in con
nection with his professional practice.
In 1878 he started a private bank and
until the time he left the county, was
closely associated with it.
Returns From Vacation
Miss Irene Conant, assistant cashier in
the State Bank, o f Oladbrook, Iowa, re
turned recently from Bayfield, Wisconsin,
where she had spent her vacation and
escaped a siege o f hay fever, from which
she suiters each year. While in Bayfield
she had an opportunity to witness the
way forest fires are fought, having been
only a few miles from the burning re
gions.
Forty Years Old
The State Bank o f Waverly, Iowa,
which noted its fortieth birthday recently,
opened for business September 16, 1889,
in an old brick building that stood on the
site o f the present banking house.
It was a small institution but was
backed by substantial business men. It
has grown to be one o f the leading bank
ing houses in that section o f Iowa.
The following are the officers o f the
bank at this time:
O. A. Grossmann, president; A. J. Wile,
Banker Stricken
As a result o f his injuries when knocked
down by the robbers o f the Emmet County
State Bank, o f Estherville, Iowa, M. K.
Whelan was taken to the hospital recently
with a stroke. He had been doing nicely
and was thought to be on the rapid road
to recovery. He had been visiting at
home with friends. He went up stairs to
retire and as he went to hang something
up in a closet the stroke came on. It
was thought he would not live until he
reached the hospital.
Resumes Work
Melvin Sattre, the Burr Oak, Iowa.,
banker, who has been recuperating from
a serious operation and illness fo r several
months, resumed his duties at the bank
recently. He is looking good and feeling
good and friends and customers are all
pleased to see him back at his desk in the
bank.
T N SELECTIN G this
bank to handle your
account in Dcs Moines,
you have the advantage
o f w o r k i n g w i t h an
organisation w h i c h is
particularly well qualified
both in resources and in
personnel to take good
care o f the business o f
ou U oftow n banks, especially those in Iowa.
JL
Dies in Oregon
E. F. Riley, former well-known Clarke
County, Iowa, banker, died at his home
in Portland, Oregon, recently, at the age
o f 90 years. He left Clarke county in
1891. At that time he was owner o f the
bank now known as Simmons and Com
pany.
Mr. Riley came to Osceola in 1864, soon
after his graduation from the law depart
ment o f Ann A rbor University in Mich
igan. Previous to coming here he had
practiced law in Mount Gilead, Illinois,
for about a year. He opened law offices
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Federal Reserve Bank of St. Louis
B A N K E R S TR U ST CO.
BAN K
Cor. 6th and Locust Sts., Des Moines
Capital $ 1 ,0 0 0 ,0 0 0 .0 0
Surplus $ 2 0 0 ,0 0 0 .0 0
Northwestern Banker
October 1929
92
vice president; G. 0 . VanDerveer, cash
ier; E. H. Moehling, assistant cashier;
C. C. Runyard, assistant cashier; Otto
Bredow, bookkeeper; Fred Keseberg,
bookkeeper; C. E. Moehling, bookkeeper;
Raymond Downing, clerk; Theresa Dono
van, stenographer.
The directors are G. A. Grossmann, A.
J. Wile, William Luhring, 0 . H. Mitchell,
F. P. Hagemann, W . F. Fritz, C. C. Runyard, H. E. Moehling, G. 0. VanDerveer.
To Reduce Capital
template the reduction o f their capital
stock to the extent o f $95,000. The State
Bank has a capital o f $90,000 and will
reduce this to $45,000, while the Fayette
County National has a capital of $100,000,
which will be reduced to $50,000. The
matter will be taken up by the stockhold
ers. This move will require a majority
vote of two-thirds of the stockholders vot
ing for the proposition. Both banks are
overcapitalized, and there is little doubt
but that the stockholders all favor the
move.
The State Bank of West Union and the
Fayette County National Bank, the two
oldest banks of West Union, Iowa, con
Notices calling fo r the special meetings
of both banks are mailed. The State Bank
meeting is called for the 9th and the Na
tional on the 15th day o f October, for the
purpose o f voting on such an amendment
to the articles o f incorporation.
Heads Clearing House
Glenn Brown, president o f the Iowa
Trust and Savings Bank, was elected
president o f the Dubuque Clearing House
association, succeeding the late Maurice
Brown, at the annual meeting. William
Lawther, president o f the First National
Bank, was elected vice president, and
William M. Kretschmer was reelected sec
retary and manager. The six Dubuque
banks are members o f the clearing house
association.
To Boost Savings
A new idea in savings banks was put
into use recently by the First National
Bank o f Council Bluffs, Iowa, with the in
stallation o f a bank-dispensing slot ma
chine in front o f the institution’s building.
The machine will deliver a small bank
fo r a dime, the dime to be refunded by the
First National upon the opening o f an
account. The bank purchased by the dime
is shaped like a tape line case and is about
three inches in diameter. It will hold any
coin up to a quarter.
On one o f the faces o f the bank is a
movable chart that reveals the weekly sav
ings necessary fo r people o f different ages
in order to acquire any sum from $5,000
to $25,000 by the time they are 50 years
old.
A BR O A D ER OUTLOOK
Appreciation o f tire financial
p ro b le m s o f W i s c o n s i n ’ s
greatest industrial enterprises
as well as tliose o f 7 8 5 W
IS—
consul banks an d 2 0 0 ,0 0 0
Atlantic Man Dead
W ord was received in Des Moines re
cently o f the death in an Omaha hospital
o f Thomas Hayes Whitney, 52, vice presi
dent o f the Whitney Loan and Trust Com
pany o f Atlantic, Iowa. Whitney, the
son o f Frank H. Whitney, founder o f the
city of Atlantic, had been ill only a short
time.
M i l w a u k e e a n s , lias given
tins in stitu tio n a broader
outlook on M i d - W est b U S 1ness and financial conditions
wliicli customers and corre
spondents find an important
element m tbe constructive
service we offer.
FIRST W IS C O N S IN
N A T IO N A L B A N K
M ILW AUKEE
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
October 1929
Heads County Bankers
George F. Downey, cashier of the Farm
ers Savings Bank, Edgewood, is the new
president; C. C. Pust, cashier o f the Littleport Savings Bank, the new vice presi
dent, and J. J. Mathews, cashier o f the
Strawberry Point State Bank the newT
secretary o f the Clayton County Bankers
Association as a result o f the annual meet
ing which was held in Elkader, Iowa, re
cently.
No set program had been prepared for
this meeting, but one o f an informal na
ture was given. Charles Johnsen, presi
dent of the Citizens State Bank of Chi
cago, gave an interesting talk and a num
ber o f county bankers, including D. D.
Murphy and V. T. Price o f Elkader; F.
M. Orr o f Monona, and Chas. Adams of
Guttenberg, discussed questions of inter
est to the bankers.
A number o f committee reports were
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Federal Reserve Bank of St. Louis
93
V
Cuba Still Belonged
To Spain
'" T H A T
seems a n d
x w a s a long time
ago, and yet this bank
T HE.policies o f
1895,
w hich built our repu
tation, are still the guid
ing principles o f this busi
ness. Thirty-four years o f
consistent growth and
uninterrupted payment
o f dividends are back o f
this most complete bank
ing service.
w as w ell established
on
a foundation
of
integrity, service and
safety even before the
Spanish w ar.
Personal Attention to
Correspondent Accounts
G R A N T M cPH ER R IN
LELAND
President
LYNN
W IN D S O R
Vice President
G. F U LLE R
D. B O Y D B R A N N
Vice President and Cashier
Assistant Vice President
C entral National b a n k
ySJND T R U S T
-------------o - r d e s
UNDER
U.
S.
COM PANY
i s a 0 1 n i e s --------------
GOVERNMENT
SU PER VISIO N
FORMERLY THE CENTRAL STATE BANK
Northwestern Banker
/
October 1929
94
also given to the g ro u p w hich num bered
fifty -e ig h t in all.
n otice in ord e r that the cu rren cy m ay be
sent.
Carry Little Currency
Conclude Convention
The S ib ley, Io w a , banks are an n ou n cin g
that in the fu tu re th ey w ill ca rry on ly
enough cash on hand to m eet the usual
needs o f th eir d a ily business. This is b e
in g done in an e ffo rt to c o p e w ith the
ba nk r o b b in g situ ation, w hich is serious
in that section o f the cou n try.
A m p le cu rre n cy reserves w ill be carried
in corre sp o n d e n t ba nks w hich w ill be
available on short n otice. The banks re
quest that a n yon e w a n tin g cash to exceed
$200, g iv e them at least tw e n ty -fo u r hours
The co n clu d in g session o f the tw o-d a y
con ven tion o f the T o y A ssocia ted banks
ended in the d ire cto rs’ room s o f the T o y
N a tion al B a n k in S io u x C ity, Iow a , w ith
a qu estion b o x con d u cted b y C. C. Childs,
vice p resid en t o f the F a rm ers L oa n and
T rust C om p a n y.
A b o u t 42 ba n k ers attended
con fe re n ce w hich consisted o f
ba n k in g, qu estion s p e rta in in g
m ents o f trusts, and discu ssion
laws.
Candidate for Director
G eorge J. S ch aller, presid en t o f the
C itizen s F irst N a tion al B ank , S torm Lake,
Iow a , an n ou n ces his ca n d id a cy f o r G ro u p
3, Class A , d irectorsh ip o f the C h icago
F ed era l R eserve B ank, that is, the d irec
torsh ip to be filled b y those banks in the
the annual
lectures on
to d e v e lo p
o f b a n k in g
GEORGE J. S C H A L L E R
C apital
-
-
O n e M illion D o lla rs
R e so u rc e s - T e n M illio n D o lla rs
Prompt, intelligent service is rendered correspondent
banks by every good bank, but the outstanding feature of
the FIRST NATIONAL BANK OF SIOUX CITY service
is our real co-operation in meeting tbe needs of correspond
ent banks in the extension of credit and helpfulness in
securing high class investments for their secondary reserve.
WE INVITE YOUR ACCOUNT
D IR E C T O R S :
R. J. A N D R E W S
R A L P H J. H A L E Y
W . S. K N A P P
Real Estate and Insurance
President, Haley-Neeley Co. President, Knapp & Spencer Co.
F. B. B U C K W A L T E R
W . A. K L IN G E R
A. S. H A N F O R D , SR.
President, The Buck waiter Co.
Constructor
President, Hanford Produce Co.
E. C. C U R R IE R
J.
L. M IT C H E L L
President, Hansen Glass & Paint
H.
A.
GOOCH
President
Co.
Vice President
D. C. S H U L L
D A V E D A V ID S O N
President, Davidson Bros. Co.
Attorney
JO H N B. K E E F E
E. B. F L IN N
Socretery-1 re-s rer. IVI. L. Flinn
H E N R Y G. W E A R E
President, IVI. L. Flinn Paving Co.
Paving Co.
Ranchman and Banker
Northwestern Banker
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Federal Reserve Bank of St. Louis
October 1929
Seventh F ed era l R eserve D istrict h avin g
a ca p ita l stock an d su rplu s below $200,000.
M r. Sch aller is w id ely k n ow n th rou g h
out Io w a and the central west.
H e has
m ade an o u tsta n d in g reco rd as a banker.
H is ow n b a n k in g career, co u p le d u p Avith
that o f his fa m ily , extends f a r ba ck in to
the p io n e e r days o f Io w a , m a k in g a r e c
ord , the con tin u ity o f w hich has given
him an a p p re c ia tio n o f b a n k in g f o r the
g ro u p o f banks he seeks to rep resen t on
the boa rd o f the F ed era l R eserve B a n k o f
C h icago, w h ich is p r o b a b ly secon d to none.
M r. S ch a ller’ s ba nk is one o f the largest
o f the G rou p 3 banks in the state o f I o w a ;
is located in a co u n ty seat tow n o f 4,500
p o p u la tio n .
W h ile he has k e p t in close
con ta ct w ith his m a n y fr ie n d s in ba n k in g
in stitu tion s o f the la rg er centers th rou g h
ou t the central w est, yet he has alw ays
p rid e d h im self on b ein g a m o n g the socalled “ r u ra l” bankers.
P r o b a b ly no
banker in his state is better k n ow n to his
colleagu es than M r. Schaller. F o r years
he has been active on the com m ittees o f
the Io w a B a n k ers A s so cia tio n and tw o
years a g o served as its p resid ent. M a n y
th rou gh ou t the Seven th F ed era l R eserve
D istrict, an d even the M iss iss ip p i V a lle y ,
w ill reca ll his able address en titled “ Loans
to F a rm e rs” g iven b e fo r e the M ississip p i
V a lle y C o n feren ce called b y the A m e ri
can B a nkers A s so cia tio n in C h icago on
M a rch 28, 1929.
H is m a n y years o f b a n k in g ex p erien ce
have show n M r. S ch aller to be m ost c o n
stru ctive, co n se rv a tive and sound, and
w ith it all a m an w ho has hum an and sym
pa th etic qualities. H is qu alities as a bu si
ness m an and as an in d iv id u a l have ever
pu sh ed him ou t to an ever w id en in g circle
o f re sp ect and esteem fr o m a m on g all Avho
have com e to k n ow him b oth in an d o u t
side his state.
Quarters Remodeled
T h e S econ d N a tion a l B a n k o f N ew
H a m p to n , Io w a , recen tly op en ed th eir
d o o rs to the p u b lic as a fo r m a l o p en in g
f o r in sp e ctio n o f the n ew m od ern b a n k in g
in stitu tion . T h is ba nk stands on the old
site, and w as bu ilt w ith ou t closin g its
d o o rs o r w ith ou t the rem ova l o f a n y o f its
business to an y o th er place.
The ba nk has added quite a lot o f new
eq u ip m en t such as fo u r a d d in g m achines,
tw o p o s tin g m achines, f o u r ty p ew riters, a
bus w h ich w eighs 600 p o u n d s and is used
to ca r ry valu ab le p a p ers , etc., in to the
vault each n igh t.
T he bank has had in
stalled a fine lig h tin g and v en tila tin g sys
tem w hich in cludes an electric fa n in the
cen ter o f the office room .
T he officers o f the ba nk are G. M .
B a iley , p r e s id e n t; S. E . J oh n ston , vice
p re s id e n t; C. B . P h illip s , ca sh ie r; A . H .
Griffith, assistant ca sh ie r; V id a Sew ell,
assistant c a s h ie r ; E th el F lu rr y , t e lle r ;
M a r jo r ie M itch ell and G era ldin e P h illip s,
assistants. D ire ctors, G. M . B a iley , S. E .
J oh n ston , C. B. P h illip s, F . W . B row n ,
T o m D o w d and M a tt M eyer.
Chickasaw Bankers Meet
The bankers o f C h ickasaw cou n ty , Iow a ,
and th eir la dies e n jo y e d an a fte rn o o n and
even in g o u tin g at the N ew H a m p to n G o lf
and C o u n try C lub recen tly.
T his g ro u p bega n to gath er early in the
a fte rn o o n and visited w ith one another.
O thers tried g olfin g on the new g o lf links,
n ot yet qu ite rea d y , but a g o lfe r has a
w o n d e rfu l tim e on this s p o rty links.
A t 6 :30 o ’ clo ck a p la te banqu et w as
served to the six ty -o n e ba n k ers and th eir
guests. T he service w as g iven b y a sp ecia l
com m ittee o f la d y m em bers o f the N ew
H a m p to n G o lf and C o u n try Club.
D u rin g the tim e o f the din n er a slioit
p r o g r a m w as h eld. C. C. S h eakley acted
as toastm aster and rem arks w ere m ade
b y C. B . P h illip s, M . F . C on d on , A . N.
K o u t, O tto K o e rtli and W a lte r T rusty.
T h e wide range o f the
hanking activities o f
T h e F irst National Bank
urges its selection
as yo u r
banking connection
in this territory
It is the only National Bank in the
Tri-Cities— as well as Scott and
Rock Island counties
Couple Resigns
M r. and M rs. H a r r y H u ff have resigned
as assistant cash ier and b ook k eep er at the
newdy o rg a n iz e d U n ion S tate B a n k , at
R o ck w e ll C ity, IoAva. M r. and M rs. H u ff
had held sim ilar p o s itio n s Avith the F irst
N a tion a l B a n k in that c ity f o r ten and
eleven re sp e ctiv e years.
T h ey have an
n ou n ced n o p la n s f o r the fu tu re, aside
fr o m that o f re m a in in g in Roekwmll C ity
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Federal Reserve Bank of St. Louis
<SKwn<ledfw ith v is i on
R u ilt b y S e rv ic e
Northwestern Banker
October 1929
96
f o r an indefinite rest, b e fo r e again en ter
in g business.
Attend Omaha’s Big Party
A K -S A R -B E N
STO CK
SH O W
and
N E B R A S K A ’S D I A M O N D
J U B IL E E
Make this bank your downtown headquarters when you
come to Omaha to attend the stupendous Stock Show and
Jubilee November 1 to 8. There will be eight great days of
fun and exposition . . . something for everyone.
First National
F. H. DAVIS
I Bank o f Omaha
President
C. T.
KOUNTZE
Vice President
and Chairman
FIRST TRUST COMPANY
Celebrate A nniversary
The tw e n ty -six th an n iversa ry o f the
fo u n d in g o f the F ir s t T rust & S a vings
B a n k w as celebrated b y a b ig p ic n ic at
the C ity P a rk , in Id a G rove, Io w a , at
tended b y the officers and stock h olders and
m em bers o f th eir fa m ilies, m a k in g a com
p a n y o f ab ou t a h u n dred person s.
P resid en t A . Syk es p resid ed o v e r the
p ro g ra m that fo llo w e d .
H e stated that
the p a st y ea r had been on e o f v e ry healthy
g ro w th f o r the in stitu tion and its cash
assets an d secon d reserve are the largest
in the h istory o f the in stitu tion . The d e
p o s its have in creased $100,000 since a
y e a r a g o and the fo o tin g s in the state
m ent o f assets and lia b ilities have also
g on e u p $100,000, n ow stan din g at b e t
ter than $900,000.
Banker Dead
O F F IC E R S
O F F IC E R S
C. A. M AR SH
President
W IL L A. L A N E
Cashier
A. M. PL A C E
V ice President
P. W . E IG H M E Y
Assistant Cashier
H. A. M AIN E
Vice President
L. R. SW ENSON
Assistant Cashier
For Sixty-four Years
a constantly increasing margin of leader
ship in the attributes that make for unsur
passed correspondent service.
"'Try the First National First99
Erst National Bank
"Waterloo, Iow a
P r a n k H oese, banker, o f M errill, Io w a ,
and ow n e r o f m u ch land in P ly m ou th
cou n ty , rated to be a m illion a ire, died r e
cen tly at his hom e in M errill.
H e had
been sick a b ou t a m onth.
M r. H oese, 65 y ea rs old, had been a
residen t o f M errill and P ly m o u th co u n ty
all his life . H e w as b orn on a fa rm .
B esides o w n in g the B a n k o f M e rrill
and m uch p r o p e r t y in the tow n , M r. H o e se
also w as ow n er o f the S ecu rity B a n k o f
H in ton .
S u rv iv in g the b a n k er are M rs. C lara
L erch , a sister, and F ra n k L erch , a
nephew , b oth o f S io u x C ity, and W ill
H oese, S p en cer, Sou th D ak ota .
M rs.
L erch at p resen t is to u rin g E u r o p e and
at the m om ent is in G erm any. J . C. V a n
N im w egen , M errill, w as M r. H o e s e ’ s p a r t
ner.
Annual Picnic
The annual p ic n ic o f the A m e rica n
C om m ercia l and S a vin g s B a n k o f D a v e n
p o r t, Iow a , recen tly held at S p rin g B ro o k ,
w as the la rg est atten ded and m ost e n jo y
able in the h istory o f this w ell k n ow n
fin an cial in stitu tion .
Officers, d ire cto rs an d e m p loyes, t o
g eth er w ith th eir fa m ilies, m ade u p a
m erry g ro u p o f 300 p e o p le . A . H . H ie g e l
w as chairm an o f the com m ittee on ar
rangem ents.
T h e a fte rn o o n w as sp en t in v a riou s
contests an d gam es, w ith g o lf as a p o p u
la r am usem ent f o r the m en, and b rid g e
and oth er ca rd gam es f o r the w om en fo lk .
A t 6 :30 o ’c lo ck an a p p e tiz in g chicken
din n er w as served.
T h e even in g w as
devoted to dancin g.
Goes to Chariton
R a lp h M cC la in o f D es M oin es, has ac
cep ted a p o s itio n in the S tate S a vings
B a n k o f C h ariton, Io w a , ta k in g the p la ce
Northwestern Banker
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Federal Reserve Bank of St. Louis
October 1929
97
o f M r. H ou se, w h o has m ov ed to M issou ri.
M r. M cC la in has been con n ected w ith a
D es M oin es ba n k and is ex p erien ced in
that line o f w ork .
D IR E C T O R S A N D
O F F IC E R S
Head Vigilantes
R . A . Jo n e s o f S torm L ake, Iow a , is
the n e w c h ie f o f the B u en a V is ta C ou n ty
V ig ila n te s. H e w as a p p o in te d head o f the
v ig ila n te s b y S h eriff “ T o n y ” T h om p son ,
u p o n the recom m en d a tion o f the B u en a
V is ta C o u n ty B a n k ers A s socia tion , and
su cceeds C harles W . L ierck e, w h o recen tly
resign ed . A lea der f o r each tow n in the
co u n ty is to be nam ed, bu t the nam es o f
the lea ders have n ot been an n oun ced as
yet.
Annual Meeting
The D es M oin es C ou n ty B a n k ers A s s o
cia tio n m et re ce n tly in annual m eetin g in
B u rlin g to n .
O fficers w ere elected and
com m ittees w ere a p p o in te d and pla n s
m ade f o r th e annual ba n k ers’ p icn ic.
The officers elected w ere : P resid en t,
P ra n k L. H o u k e , v ice p resid en t o f the
M erch a n ts N a tion a l B a n k ; v ice p resid en t,
J. E . B e rry , cashier C itizen s State B a n k
o f M e d ia p o lis ; se creta ry an d treasurer,
P . H . R ie p e , cash ier S p e rr y S a vin gs
B ank.
Resigns
R e ce n tly A . C. H a u ck , cash ier o f the
F ir s t T rust an d S a vin g s B a n k o f A lta ,
Io w a , an n ou n ced that M rs. 0 . E . A r n e y
w ho has been e m p lo y e d at the b a n k f o r
the p a st fe w m on th s has resign ed h er p o
sition . M rs. A r n e y , in co m p a n y w ith her
m oth er and sister, p la n to ta ke an e x
ten ded m o to r tr ip th rough the east.
Fifty-nine Years of
Successful
Conservative Banking
■g*>
Statement of Condition
of
T H E C IT Y N A T IO N A L B A N K
of Clinton, Iowa
September 16, 1929
RESOURCES
Time and Demand L o an s........... $6,082,001.60
484,385.48
U. S. B on d s......................................
Stock in Federal Reserve Bank. .
19,500.00
Banking House and Real Estate
93,427.46
Bill-of-Lading Item s-in-Transit.
78,059.15
Cash and Due from Banks and
U. S.....................................................
910,998.90
$7,668,372.59
L IA B IL IT IE S
Capital ................................................... $ 300,000.00
350,000.00
Surplus ...............................................
Undivided Profits ...........................
225,133.50
Reserved for Interest and Taxes.
90,000.00
Circulation ........................................
300,000.00
Deposits ............................................. 6,403,239.09
A L F R E D C. SM ITH,
President
G. L. CU R TIS,
Vice President
President, Curtis
Companies, Inc.
G. W . D U L AN Y, JR ..
President, Eclipse
Lumber Co.
Chairman, Climax
Engineering Co.
H. W . SEAM AN,
President Clinton W ire
Cloth Co.
M. J. G A B R IE L ,
President Gabriel
Lumber & Fuel Co.
J. P E TE R SO N ,
J. O. SH AFF.
State Senator
Farmer and Live Stock
Dealer
B. M. JA CO BSE N ,
President
Clinton T h rift Co.
E. J. CU RTIS,
Vice President Curtis
Bros. & Co.
C. A. A R M STR O N G ,
Pres. C. F. Curtis
Company, Inc.
W . R. SM ITH,
General Manager
Clinton Corn Syrup
Refining Co.
A. P. B R Y A N T ,
Manager o f Operations
Clinton C om Syrup
Refining Co.
F. H. VAN A L LE N ,
V. P. and Sec’y.
J. D. Van Allen & Son,
Inc.
H. S. T O W L E ,
V. P. and Treas.
Towles & Hypes Co.
O. P. P E T T Y , Cashier
J. H. N ISSEN ,
Assistant Cashier
H. G. K R A M E R ,
Assistant Cashier
$7,668,372.59
Goes to Chicago
J o h n W . N ich ols has resign ed h is p o s i
tion as cash ier o f the W a ln u t State B a n k ,
W a ln u t, Io w a , and has a ccep ted a p o s i
tio n w ith the C on tin en ta l Illin o is B a n k
an d T rust C o m p a n y o f C h ica g o, Illin ois.
M r. N ich ols, w ho has been con n ected w ith
the W a ln u t b a n k since 1923, w ill enter
the business exten sion d epa rtm en t in the
C h ica g o bank.
Dividend
The q u a rterly divid en d , am ou n tin g to
$60,000, w as declared recen tly at a m eet
in g o f the b o a rd o f d irectors o f the A m e r
ica n C om m ercia l & S a vin g s B a n k , held
at the D a v e n p o rt C h am ber o f C om m erce.
T h e divid en d , p a y a b le O ctob er 1st, r e p
resents 4 p e r cent o f the ca p ita l stock o f
$1,500,000.
Elected Cashier
A t a m eetin g o f the b oa rd o f directors
o f the A lt a V is ta S tate B a n k held r e
cen tly, J o e M en ges o f A r lin g to n , Iow a ,
w as h ired as cash ier f o r the n ew ba nk to
be op en ed . T h e a ction o f the b o a rd w as
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Federal Reserve Bank of St. Louis
City National Bank
C L IN T O N IO W A
Northwestern Banker
October 1929
98
A W ORTHY
BACKGROUND
T h e C o n s o lid a t e d N a t io n a l B a n k
p r o v id e s a t h o r o u g h l y s u b s ta n tia l
a n d w e ll-o r g a n iz e d b a c k g r o u n d f o r
th e h a n d lin g o f y o u r c o r r e s p o n d e n t
ite m s
in
N o r t h e a s te r n
Iow a
and
N o r t h w e s t e r n I llin o is .
T h e sa m e id e a ls a n d s o u n d b u s i
n ess p r in c ip le s w h ic h e n a b le d th e
o ffic e r s a n d d ir e c t o r s o f th is in s t i
t u t io n t o b u i l d it u p to th e p o s it io n
it n o w o c c u p ie s , a re y o u r a ssu ra n ce
o f th e q u a lit y o f s e r v ic e a lw a y s at
y o u r d is p o s a l.
taken a ft e r h a v in g c a r e fu lly studied and
in vestigated all o f the a p p lica tio n s re
ceived f o r the cash ier p o sitio n .
M r.
M en g es h ad been in p erson a l con tact w ith
the m em bers o f the boa rd several tim es
and a fte r m a k in g a th orou g h in vestigation
o f M r. M en ges’ p a st re co rd an d qu alifica
tions, the b o a rd u n a n im ou sly vo te d to hire
him . T h eir a ction w as a p p ro v e d b y the
state b a n k in g departm ent.
Resigns
B.
H . R u n ge, cashier o f the F irs t N a
tion a l B a n k o f C h arter Oak, Io w a , w ho
has been con n ected w ith this in stitu tion
25 years, has ten dered h is resig n a tion , e f
fe c tiv e at once, becau se o f ill health.
M r. R u n ge began his duties as ja n ito r
o f the b a n k ov er 25 yea rs ago, b e in g p r o
m oted fr o m tim e to tim e, and has been
cash ier 10 years. H e h as been p rom in en t
in tow n affairs, serv in g as secretary o f the
boa rd o f edu ca tion 13 years, besides h o ld
in g oth er p u b lic offices.
H e h as been
m a y o r three and o n e -h a lf years, his ill
ness fo r c in g h im to resign this p o s itio n
also.
A. B. A. Treasurer
W ith his election as treasurer o f the
A m erica n B a n k ers A s so cia tio n con ced ed
as T h e N o r t h w e s t e r n B a n k e r g o e s to
press, G rant M cP h e rrin , p resid en t o f the
C en tral N a tion al B a n k and T rust C o m
p a n y , a ccom p a n ied b y M rs. M cP h e rrin ,
is in San F ra n cis co a tten d in g the n ation a l
con v en tion o f the bankers S e p tem b er 30th
to O ctob er 3rd.
In sp ite o f the fa c t that n o o p p o s itio n
had d ev elop ed to his ca n d id a cy u p to
w ith in tw o w eeks o f the con v en tion , M r.
M cP h e rrin w as reticen t ab ou t claim in g
the h on or, and w ou ld g o no fu rth e r than
to adm it that he has a “ f a i r ” p r o s p e c t o f
election .”
Retires
<#>
Consolidated National
Bank
UNITED STATES DEPOSI TORY
D U B U Q U E , IO W A
J. K. Deming, President
Geo. W . Myers', Vice President
Herman Eschen, Secretary
Jos. W . Meyer, Cashier
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
October 1929
On accou n t o f ill health, W . S. F a r quhar, p resid en t o f the F ir s t N a tion al
B a n k o f C ollege S p rin g s, Io w a , announces
that he is re tirin g fr o m the b a n k in g bu si
ness, and has tu rned o v e r sufficient assets
o f the bank to the C itizen s State B a n k o f
C larind a, w h ich ba n k h as assum ed the lia
b ilities o f the F ir s t N a tion a l B a n k o f
C ollege S p rin g s to its d ep ositors.
A. I. B. Meeting
M em bers o f the T r i-city ch a p te r o f the
A m e rica n In stitu te o f B a n k in g m et in the
first m eetin g o f the new season at the
D a v e n p o rt, Iow a , C h am ber o f Com m erce.
M em bers o f the f o u r cities w ere present.
B u siness o f the m eetin g in clu ded the
ou tlin in g o f p la n s f o r the y e a r ’ s w ork , as
w ell as f o r socia l a ctivities.
This y e a r
there Avill be classes in ba n k in g fu n d a
m entals, stan dard econ om ics and p u b lic
sp eakin g.
99
Best Since War
“ Io w a is in the best shape fin a n cia lly it
has been since the w a r,” L. A . A n d rew ,
state su perin ten den t o f banks, to ld m em
bers o f the D es M oin es C redit M en ’ s A s s o
cia tion re ce n tly at the first fa ll m eetin g
o f the associa tion .
M r. A n d r e w e x p la in ed that the gain in
ba nk d e p o s its in Iow a is in excess o f
$1,000,000 a m onth, and that w ith the
p r o s p e c ts o f a la rg er corn c ro p than an y
o th er state in the u n ion , all in d ica tion s
p o in t to an excellent fa ll and w in ter bu si
ness season.
tures w ere e n jo y e d d u rin g the day. A ll
banks in the cou n ty w ere closed at n oon
that em p loyes m igh t jo in f o r the p icn ic.
F ra n k P . M cD o n a ld o f B oon e acted as
the generalissim o and had ch a rge o f ar
r a n g in g f o r the p ro g ra m and oth er events
o f the day.
The p e o p le assem bled at
1 :30 o ’ clock and im m ediately the sp orts
p ro g ra m w as launched. The v igila n tes en
g a g e d in a sh oot ju s t f o r the sp o rt, n ot
en terin g in to an y com p e titio n .
In the
horseshoes co m p e titio n R o y B ass an d W il
liam E ldien , J r., cam e o ff victors.
Grinnell State Bank
D ep osits o f the G rin n ell State B a n k o f
G rin n ell, Iow a , stood at $749,000 the first
o f last m onth, w ith total resou rces o f
County President
E . A . G aukel, cashier o f the U te, Iow a ,
State B ank , w as selected b y the M on on a
C o u n ty B a n k ers A s so cia tio n as its p r e s i
den t f o r the en su in g y ea r at the business
m eetin g o f the associa tion held at the an
nual p icn ic at W h itin g recen tly.
here’s
an
in t e lli
gen t rea son b e h in d e v e r y
t h in g w e
S e c u r it y
do
h ere
at th e
N a t io n a l
Bank.
T h a t ’ s w h y th e s e r v ic e w e
Buy Machine Gun
A m b itio u s ba nk rob b ers w ho com e to
B u en a V is ta co u n ty , Io w a , w ith design s
u p o n the cash in lo ca l banks, w ill be
greeted w ith a w arm recep tion , in w hich
a n ew m a ch in e g u n p u rch a sed b y the
B u en a V is ta C o u n ty V ig ila n ce com m ittee
w ill p la y a p ro m in en t p a rt.
T h is m achine g u n is o f the new est ty p e
an d can be op e ra te d b y on e m an. It m ay
be ca rried about easily and is ca p a b le o f
sh o o tin g 800 4 5 -ca lib re b u llets a m inute.
W h e n its tr ig g e r is p u lled , it releases a
veritab le stream o f fire and sp its fo r th 50
shots the first three seconds.
W h a t it
co u ld do w hen tra in ed u p o n a g ro u p o f
b a n k b a n d its w ou ld be p len ty . T he new
“ a rtille ry ” w ill be p la ce d in a p o s itio n
w h ere it can com m a nd a stra igh t v iew o f
the fr o n t an d re a r o f all S torm L ak e
banks at all h ours o f the day. It w ill be
m anned b y a com p eten t gun ner. I t w ill
also be u sed in ch a sin g gunm en.
Oakland Savings Bank
W . L. S p en cer, p resid en t o f the O ak
la n d S a vin g s B a n k o f O akland, Iow a , re
p o r ts that his ba n k has never pa ssed a
divid en d since 1912.
The ba nk has
dou b led its ca p ita l fr o m $25,000 to $50,000
w ith ou t p u ttin g in an y n ew m on ey, and
still has a su rplu s and p rofits accou n t o f
m ore than $25,000.
T he O akland S a vin gs B a n k is on e o f
the o ld e r ba n k in g in stitu tion s in Iow a ,
an d its officers and d irectors are to be co m
m en ded f o r th e ir c a r e fu l m anagem ent
w hich h as con trib u ted to its g row th .
o ffe r , a n d
little b e tte r th a n y o u
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Federal Reserve Bank of St. Louis
get
a n y w h e r e e ls e .
O F F IC E R S
Leonard
L e t us p r o v e it to y o u r
e n t ir e s a tis fa c t io n .
R.
M anley...........................President
C. C. Jacobsen........................
R.
Earl
Vice President
Brow n........................................Cashier
Delko Bloern............................. . Ass’t Cashier
Albert C. Eckert......................... Ass’t Cashier
Daniel B. Severson..................... Ass’t Cashier
Elmer O. Smeby. . . . . . . .
Ass’t Cashier
C E C U R IT ^ /
i M
i i i n
i
of Sioux Cits A
HAVE YOU CUSTOMERS
CALIFORNIA BOUND?
Whcther-They arc coming as permanent residents, or
for.a short stay, you will render them a genuine service
By-Vgivingjthemccards o f introduction to . .
i.c .i: i i i t v F i i : s r X .v t k «
a l
ISA .vii o k X o x A n c e e e s
SAN LU IS.O B ISP O
Boone Bankers Meet
M em bers o f the v igila n te associa tion o f
B o o n e cou n ty , Io w a , bankers and bank
d ire cto rs an d th eir fa m ilies gath ered at
N ic -O -L e t P a r k re cen tly f o r the annual
ba n k ers p ic n ic.
T h ere w ere m ore than
150 p erson s in atten dan ce and m a n y fe a
g iv e , is ju st a
J . F. S A R T O R I
P resid e n t a n d C h a ir m a n
o f the Executive Com m ittee
H E N R Y M . R O B IN S O N
C h a ir m a n o f the
B o a rd
This Bank has Branches, which are com
plete Banks, in all parts o f the Los Angeles
area, and in 61 com munities in C alifornia,
extending from Fresno and San Luis
.Obispo to the Imperial Valley.
W e have arrangem ents for giv
ing inform ation, maps, etc., to
new arrivals in California which
materially aid their com fort and
pleasure w hile in the State.
Northwestern Banker
October 1929
100
Des Moines b u s in e s s o f
I o w a b a n k s is invited. T h e s e
^ I ^HE
b a n k s a re t h o r o u g h l y e q u i p p e d in
e v e r y d e p a r t m e n t.
Valley National Bank
$860,500. The G rin n ell State is c a p ita l
ized at $60,000, and has su rplu s and u n
d ivided p ro fits o f $60,890.
Gives Radio Talk
Ir v in J. G reen, p resid en t o f the
N a tion al B a n k o f D a v e n p o rt, Io w a ,
a ra d io address on S ep te m b e r 27th
W O C , D a v e n p o rt. H is su b je ct w as
F ed era l R eserv e S ystem and S to ck
ket O p era tion s.”
F irst
gave
over
“ The
M ar
AND
Valley Savings Bank
DES M O IN E S, IO W A
V a lle y B a n k B u ild in g
R . A . C R A W F O R D , P re s id e n t
C. T . C O L E , J R ., V ic e P r e s id e n t
C. O. C R A IG , V ic e P r e s id e n t
A . R . T H O M P S O N , V ic e P r e s id e n t
D . S. C H A M B E R L A I N , V ic e P r e s id e n t
W . E. B A R R E T T . C ashier
J O H N W . G IN S B E R G , A s s is ta n t C a sh ier
C. M . C O R N W E L L , A s s is ta n t C a sh ier
E s t a b l i s h e d 1872
Combined Capital and Surplus
$1,100,000.00
Improvements
T h e V a lle y N a tion a l B a n k o f D es
M oin es has been m a k in g som e recen t im
provem en ts in its in terior. T w o new cages
are b ein g in stalled to h an dle increased
business. T w o u p -to -d a te tran sit m achines
have been p u rch ased . The tran sit d e p a rt
m ent is b ein g reorg a n ized , w hile a p r o o f
depa rtm en t is on e o f the new featu res.
Midland National Joins Northwest
Bancorporation
A t y o u r service
in Eastern Iowa
and
Western Illinois
Buy Road Bonds
T h e B o o n e State B a n k o f B oon e, Io w a ,
b ou g h t the entire issue o f B o o n e cou n ty
ro a d bon ds w hich w ere o ffe re d recen tly.
(C o n tin u e d f r o m p a g e 29 )
PEOPLES
T RUST &
SAVINGS
BANK
PeoplesTrusl:4SaYm ^anli
CLINTON, IO W A .
Remember it this way-"PEOPLES TRUST
in g c o n tra cto r; A u g u stu s L. Searle, p r e s i
dent, S ea rle G ra in C om p a n y, L t d .; Sam
uel L. Sew all, v ice p resid en t and treas
urer, M in n ea p olis Ir o n S tore C o .; G eorge
J . Sherer, ca p ita list, and A n d re a s U eland,
counsel.
For an Emergency
The v ictim had been p r o p e r ly p a tched
u p, both b rok en legs set, six stitches u n
d er the chin, p la ster cast a rou n d the chest,
and a sm all silver inset in the skull.
“ B y the w ay, D o c ,” he w h ispered, as the
w ea ry su rgeon g a v e one last p ro u d lo o k at
his h a n d iw ork , “ I d o n ’t k n o w ju s t w hen
I ’m g o in g to be able to p a y y o u f o r all
this. I ’ ve g o t a fe w h u n dred la id b y in
the bank, bu t to tell y o u the tru th , I ’m
sa vin g that in case o f an em e rg e n cy.”
Four Dollar Annual Dividend
Manufacturers and Printers o f
ENVELOPES o f Every Description
PRICE
SERVICE
and
and
QUALITY
COURTESY
IDe Specialize in Bank Enuelopes of euerq Stqle
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
October 1929
T he b oa rd s o f d irectors o f the Chase
N a tion a l B a n k o f the C ity o f N ew Y o rk
and Chase S ecu rities C o rp o ra tio n have de
clared q u a rterly d ividen ds on the $20 p a r
value stock o f the ba nk an d the no p a r
valu e stock o f the S ecu rities co rp o ra tio n ,
a g g reg a tin g $1 p e r share on the 5,250,000
shares o f the c o rp o r a tio n .
These d iv i
den ds are p a y a b le O ctob e r 1, 1929, to
stock h olders o f re co rd at the close o f bu si
ness S ep tem b er 11, 1929.
The tra n sfe r
b ook s w ill n ot close.
G ra sp an idea and w ork it ou t to a su c
cessfu l con clu sion . T h a t’ s ab ou t all there
is in lif e f o r a n y o f u s .— Edivard H. Har-
riman.
♦
101
tin, P u kw a na , and E . D . R ob erts, P ie rre .
The hank w ill have a ca p ita l o f $25,000.
South Dakota
B an k N e w s
Custer Banker Dead
Officers South D akota Bankers
Association
P r e s id e n t ..........................T h o m a s
H oven
O ’B rie n
V i c e P r e s id e n t ..................... A . B. Cahalan
M ille r
T H O M A S O ’B R I E N
P r e s id e n t
S e c r e t a r y ................... G e o rg e
H u ro n
A.
S ta r r in g
T r e a s u r e r .............................. H . E . E d m u n d s
Y a n k to n
Noon Hour Closing
B o th o f the F re d e rick ba n k s have
a d o p te d a p la n to fu stra te d a yligh t bank
ro b b e rie s w hich m a y be g en era lly a d op ted
b y the ba n k s o f all Sou th D a k ota tow n s
outside o f the la rg e r cities.
In F re d e rick and oth er sm aller tow n s
o f the state it has been cu stom a ry d u rin g
the n oon h ou r f o r the ba nk staff w ith the
e x ce p tio n o f one p erson to g o out to
lu nch eon, the one le ft in the ba nk g o in g
out f o r his ow n lu n ch eon w hen the others
have retu rn ed. W ith o n ly one p erson in
the bank d u rin g the n oon h ou r the tim e
is o p p o r tu n e f o r d a yligh t hank h oldups.
H e re a fte r, u n d er the new p la n a d op ted
b y the F re d e rick banks, both hanks w ill
be closed d u rin g the n oon h o u r and the
entire f o r c e w ill g o to lu n ch eon at the
sam e tim e and retu rn togeth er, so there
n ever w ill be less than tw o or three o f
the b a n k staff in the banks.
G E O R G E H. S T A R R IN G
S e c r e ta r y
tors o f the n ecessity o f c a rry in g ov er cash
w hich is received a fte r b a n k in g hours.
To Rapid City
W a lte r J oh n son , la tely vice p resid en t
o f the C om m ercia l N a tion al B a n k at S tu r
gis, Sou th D ak ota , and n ew ly elected vice
presid en t o f the F irs t N a tion al B a n k o f
R a p id C ity, has arrived to take u p his
new duties.
National Charter
P la n s f o r the establishm ent o f a new
n ation a l ba nk in M a d ison , Sou th D ak ota ,
w ere an n oun ced recen tly.
A p p lic a tio n f o r a ch a rter f o r the new
in stitu tion has been m ade b y J. J. D eL a y , w ho n ow h olds the p o s itio n s o f p r e s i
dent o f the F ir s t N a tion al B a n k at B eresf o r d and p resid en t o f the S ecu rity N a
tion a l B a n k at L au rel, N ebraska.
T he p r o p o s e d bank w ill have a ca p ita l
o f $50,000 and a su rplu s o f $10,000.
Bank Is Remodeled
R e m o d e lin g o f the P ierre, Sou th D a
kota, N a tio n a l B a n k b u ild in g h as been
com p leted and business is b ein g ca rried on
in the n ew ly decora ted b u ild in g.
N ew
fixtures have been in stalled and the floor
level low ered.
Deposits Higher
R e p o r t o f the B a n k o f M on roe, South
D ak ota , the o n ly in stitu tion o f its kin d in
M on roe, show s that d u rin g the p a st 12
m on th s the ch e ck in g d ep osits have in
creased about $35,000 and n ow total m ore
than $100,000. The tota l deposits, in clu d
in g ch eck in g and tim e d eposits, n ow are
a p p ro x im a te ly $265,000, w hich is rega rd ed
as a g o o d sh ow in g f o r so sm all a tow n as
M on roe.
These am oun ts w ill be m ate
ria lly in creased w hen th e la rge g ra in c ro p
is m arketed.
Install Depository
A n a fte r-h o u r d e p o s ito r y has been in
stalled at the A m e rica n State B a n k o f
Y a n k to n , Sou th D a k ota , f o r the co n v e n i
ence o f the b a n k ’ s p a tron s. T h is m od ern
service p ro v id e s a sa fe d e p o s ito ry f o r
those w ho care to avail them selves o f the
service and is design ated to relieve d e p o s i
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Federal Reserve Bank of St. Louis
Elect Officers
Three n ew officers w ere elected at the
annual m eetin g o f directors and officials
o f the F irst N a tion a l B a n k o f R a p id C ity,
Sou th D ak ota .
A . K . T h om as w as elected vice p re s i
dent, as w as W a lte r H . J oh n son , Sturgis.
N oel W . K la r w as elected cashier.
M r.
J oh n son is an official o f a S tu rg is bank.
H e w ill sp en d p a rt o f his tim e in the bank
in R a p id C ity.
T he com p lete list o f officers o f the bank
is :
A . S. H a lley , p re s id e n t; I. M . H u m
p h rey , A . K . T hom as, and W a lte r J o h n
son, v ice p re sid e n ts; N oel K !a r , ca sh ier;
Jam es N ob le and W a lle r H a lley , assistant
cashiers.
New Bank
C ham berlain, Sou th D ak ota , is to have
a new b a n k in g in stitu tion .
I t is a n
n ou n ced that the state d epa rtm en t o f
b a n k in g and the d e p o s ito rs’ g u a ra n ty fu n d
com m ission have a p p ro v e d the ch a rter f o r
the p r o p o s e d bank, w hich w ill be nam ed
the B ru le C ou n ty B ank.
O fficers o f the bank, it is stated, w ill in
clud e II. I. L aw ren ce, P ie r r e ; W . B . M a r
A . J. W ig n ess, cash ier o f the F irs t N a
tion a l B a n k o f Custer, Sou th D ak ota , and
p resid en t o f the C om m ercia l C lub, a fte r
several m onths o f stru ggle against a co m
p lica tio n occa sion ed b y tu bercu losis o f the
bon e, died at the Sisters H o s p ita l at H o t
S p rin g s.
H is b o d y w as b rou gh t ba ck
th rou gh Custer, fr o m w here it w as es
corted b y a caravan o f C uster business
m en to R a p id C ity and fr o m there sent to
his h om e n ear F a r g o , N o rth D ak ota . A l
th ou gh M r. W ig n e s s h ad been in v e ry p o o r
health the p a st three m on th s n one o f his
frie n d s had a n ticip a ted that the end w as
so near. H is death cam e as a shock to
the com m u n ity.
In New Home
The M in ers and M erch a n ts B a n k o f
L ead, Sou th D ak ota , has o ccu p ie d its new
hom e, com p leted a fte r several m on th s’
w ork o f rem odelin g. The fr o n t is o f terra
cotta w ith stained glass w in dow s. The in
te rio r is o f m arble and travertin e, w ith in
la id m a h og a n y fu rn itu re and w o o d w o rk .
Bank Robbed
A lon e ba n d it, bew h isk ered an d d irty ,
held u p and rob b e d th e S ecu rity State
B a n k o f M ob rid g e, Sou th D a k ota , o f
$4,000 recen tly.
The cashier, L u d w ig
C hristiansen, w as k n ock ed u n con sciou s
and the r o b b e r m a de a clean getaw ay.
T h ere w ere n o w itnesses to the ro b b e ry .
T h e ba n d it fo r c e d Christiansen to open
the ba n k sa fe, fr o m w hich he to o k a sh ip
m ent o f cu rren cy an d silver.
W h e n he
recov ered consciou sness the cashier fo u n d
that his w atch and a cam eo r in g had been
taken.
T he cashier described the ro b b e r as b e
ing’ about 30 years old, d irty and unkem pt.
H e w ore overalls.
Resigns
R esig n a tion o f O. B . W a lla ce o f P ierre,
Sou th D ak ota , assistant su perin ten den t o f
banks, and a p p oin tm en t o f Jam es B . L am b ertson o f S iou x F a lls as his successor,
w as an n oun ced b y the state b a n k in g de
partm en t.
M r. W a lla ce, w ho has been con n ected
w ith the b a n k in g d epa rtm en t f o r five
years, and assistant su perin ten den t f o r
the last year, w ill leave f o r a p o s itio n in
the business exten sion d epa rtm en t o f the
C on tin en ta l Illin o is B a n k and T rust C om
p a n y , C h icago.
M r. L am bertson is fo r m e r p resid en t o f
the Sou th D a k ota B a nkers A sso cia tio n .
Takes Wool Pool
A n n ou n cem en t has been m ade that the
F irs t N a tion al B a n k o f W a te rto w n has
taken ov er the task fo r m e rly handled in
Northwestern Banker
October 1929
102
N ew Y o r k o f fin an cin g the Sou th D a k ota
w ool p o o l, in v olv in g $350,000.
T he an n oun cem en t w as m ade b y C a rroll
H . L ock h a rt, cashier o f the bank, w ho has
su p ervised w o o l p o o l op era tion s.
The
fin an cin g w as handled last y e a r th rough
the N a tion al C ity B a n k o f N ew Y o r k , bu t
was tra n sferred to W a te rto w n this year
because o f p ro x im ity .
Now
Open
IN
NEWYORK
9he
M otel
©VERNORj
(LINTON
O P P O S IT E
P E .X X A . STA TIO N
New York's new
hotel truly ex
pressive of the
greatest city. 1200
W ith each tow n in the co u n ty r e p r e
sented, C enterville, South D a k ota , ba nkers
w ere hosts recen tly to the ba nkers o f the
cou n ty and th eir fa m ilie s at a din n er
served on the screened p o r ch at the club
house at G un derson p a rk .
A b o u t sixty
w ere in the g ro u p , in clu d in g a fe w guests
not m em bers o f the cou n ty associa tion .
A f t e r the din n er, R o b e rt P eterson ,
p resid en t o f the cou n ty orga n iza tion ,
asked Jas. T. T h om son to g ive a talk
w elcom in g the visitors. M r. T h om son e x
ten ded a w elcom e to the v isitors n ot on ly
f o r that even in g but f o r ad tim e to m ake
use o f G u n derson p a rk f o r th eir g rou p
m eetings, f o r th eir p icn ics and f o r their
fa m ily gath erings.
O ther sp eakers Avere G eo. N elson o f
S io u x F a lls, G eo. Sch ultz o f S iou x F a lls
and C. FL TTornbeck.
Putting Them Up— And How!
(C o n tin u e d f r o m p a g e 19 )
each with Servi
this m a ch in ery w as to be in the fr o n t tell
e r’ s booth, and he w as to op era te it with
a p ressure o f his toe.
T h ere w ere tw o
p r in cip a l o b je ctio n s to this device.
The
first w as that it w as rath er difficult to ex
p la in how we w ou ld get the band it to
stand in the rig h t sp ot at the righ t tim e.
ting iee water and
radio provisions.
ROOMS
Many Disadvantages
T
County Meeting
pleasant rooms
dor, bath, circula
A n o th e r w as that o u r first teller was sub
je c t to occa sion a l attacks o f St. V itu s
dance, and there w as a p o s sib ility that he
m igh t have on e o f these at a tim e when
the m a yor, or G ov ern or H am m ill, o r som e
one like that, h a p p en ed to be stan din g on
the tr a p -d o o r. S o we had to aban don that
plan.
H I S same fellow wanted to install a
machine gun under the counter, also
to be operated by pressure of the toe, in
case the hands were occupied in reaching
heavenward. This arrangement also ap
peared to have its disadvantages. There,
was a chance, fo r instance, that our cus
tomers would find out about it, and we
might lose some business. Of course, in
case o f a run on the bank, we vrnuld have
been glad to let the knowledge leak out, but
in the ordinary course o f business, vre sus
pected that some o f our customers might
be a bit timid about bringing in their de
posits if they knew about the gun. And
we didn’t have enough depositors so that
Ave could afford to take a chance on shoot
ing any o f them. It wasn’t difficult to
contemplate the idea of shooting some of
the people Avho were in the habit o f ap
pearing before our counter, but the ma
chine gun, o f course, might not knoAV
which were Avhich. You can’t expect too
much from a machine gun.
The code o f etiquette Avhich should gov
ern a banker during an unforeseen hold
up may be summed up in the Avords: “ Be
natural.” I f you feel like fainting when
the leader pokes his gun in your ribs, go
ahead and do it. That may save you a clip
on the ear later on.
of
A b o v e all, be con siderate o f the fe e lin g s
y o u r u n ex p ected guests.
R em em ber
*3
E. G. KIEL, General Manager
Why Tile Drainage Loans Are Safe
(Little Talks on T iling, No. 41)
Where can you find a better
farm loan than for tile drain
age? Think what Tile drain
age does. It gives the farmer
larger yields per acre from the
same labor and the same ex
pense for seed and other over
head costs. Often this increase
in yields per acre is as much as
L arger
Y ie ld s
fr o m
Sam e
100%. It can be depended on
to repay the cost of the im
provement in one to three
years, after which this increase
is all clear profit. It will do this
in practically any clay soil
whether low or high, fiat or
rolling. What loan could be
safer or more constructive?
Land
and
L o a n in f r o m O n e t o T h r e e
Labor
R epay
Y ears.
M a so n City B rick a n d T ile C o.
312 Denison Bldg.
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
October 1929
Mason City, Iowa
103
In southern Io w a the la tter p a rt o f
S ep tem b er one o f the con v in cin g a rg u
m ents in fa v o r o f in telligen t selection o f
b reed in g stock, fe e d in g o f balanced r a
tion s and ra is in g o f p ig s u n d er sa nita ry
con d ition s w as the in clu sion in the e x
h ibits on the train o f som e live h ogs raised
u n der these con d ition s.
th at th ey are o fte n sensitive to slurs u p o n
the nature o f th eir ca llin g. I f y ou h a p p en
to have a relative in the p r o fe s s io n ; m en
tio n the fa c t.
I f y ou ca n ’t, do, that, y o u
ca n at least a v oid in sid iou s rem arks that
m ay cause y o u r callers u n told m ental
anguish.
R em em b er that to sp oil th eir
d a y f o r them b y an ill-con sid ered w o rd is
lik ely to be the equ ivalent o f spoilin g, y o u r
d a y also.
in N ew Y o rk , C h icago, A tla n ta and L os
A n g eles.
M r. M u rp h y is a gra du a te o f O gle
th o rp e U n iv ersity o f A tla n ta , w as assist
ant secretary o f the G e org ia B ankers
A s socia tion f o r a n um ber o f years and
f o r six years w as business m a n a ger o f the
Southern Banker.
H e w ill have ch a rge o f the southern
business o f the W ilso n A g e n cy , w ith h ead
C.
V E R W E R S o f V a n W ert p ro d u ce d quarters in the A tla n ta office, su cceeding
seven ty-th ree p ig s fr o m eight sow s that
W illia m C. B en n ett w ho has rem oved to
w eighed 240 p ou n d s each, w h ile G eorg e
N ew Y o r k as a m em ber o f the official
B y c r o ft o f B rook s, Iow a , p ro d u ce d sev
staff; o f the C en tral H a n o v e r B a n k and
en ty-five p ig s fr o m ten sow s that averaged
T ru st C om p a n y.
253 p ou n d s each. M r. V e r w e rs ’ cost o f
In a ccep tin g the p o s itio n w ith this w ellp ro d u ctio n w as 7 cents a p ou n d , while
established fin an cial a d vertisin g ag en cy ,
M r. B y c r o f t ’s p ig s cost him 6 % cents to
M r. M u rp h y is retu rn in g to his hom e city
p rod u ce. B oth m en raised these h ogs on
and w ill h ave charge o f a te rrito ry in
clean g rou n d . P ig s fr o m both herds w ere
w hich he is w ell and fa v o r a b ly k n ow n to
on the B u rlin g to n train and M r. B y c r o ft
a host o f bankers.
a ccom p a n ied the train to tell h ow it w as
done.
Farms and Farming
(C o n tin u e d f r o m p a g e 21 )
con test. N o attem pt is m ade to see w h o
can p lo w the m ost o r the fastest, but
rath er is the em p hasis p la ced on the q u a l
ity o f w ork . In ord e r to q u a lify in this
m atch stra ight, w ell defined fu rr o w s are
req u ired and the neatness, the c o v e rin g
o f all trash an d the ba ck fu r r o w are
taken in to con sid eration .
A s a result o f th is p lo w in g m atch, fa r m
ers in the co u n try take a g rea t deal o f
p rid e in the cra ftsm a n sh ip w hich th ey are
able to exh ib it in p lo w in g th eir grou n d .
Education Complete
Joins Financial Agency
J os ep h R . M u rp h y , w ho f o r the p a st
y ea r has been associa ted w ith the C orn
E x ch a n g e N a tion al B a n k and T rust C om
p a n y , P h ila d elp h ia , in the p o s itio n o f as
sistant cashier in charge o f corresp on d en t
relations, has resign ed to a ccep t a vice
p resid en cy o f E d w in B ird W ils o n , In c.,
fin an cial a d vertisin g agen cy, w ith offices
T H A T P O R K P R O D U C T I O N can be
on a p ro fita b le basis is the idea b e in g
“ so ld ” to Io w a and N eb ra sk a fa rm ers on
sp ecia l trains b e in g ru n this fa ll on the
B u rlin gto n and N orth w estern R a ilro a d s
in co o p e ra tio n w ith the a g ricu ltu ra l c o l
leges o f the tw o states.
I n c r e a s e d
f o
r
“ D id y ou g iv e y o u r d a u gh ter th at c o p y
o f ‘ W h a t E v e ry G irl Sh ou ld K n o w V ”
asked dad.
“ Y e s ,” rep lied m oth er d esp on d en tly,
“ and she’ s w ritin g a letter to the au th or
su ggestin g a cou p le o f dozen co rre ctio n s
and the ad d ition o f tw o new ch a p te rs.”
The m an w ho is stuck u p o n h im se lf finds
it h ard to g e t out o f his tracks.
F i n a n c i a l
R e s o u r c e s
L ivestock Industry
t h e
S to ck
th e p o o le d reso u rces o f th e N o r th -
N a t i o n a l B a n k w it h t h e N o r t h w e s t
w e st B a n c o r p o r a t i o n , a m o u n t i n g to
The
a ffilia t io n
of
B a n c o r p o r a tio n
th e
L iv e
in s u r e s
th e
liv e
o v e r $ 3 6 5 ,0 0 0 ,0 0 0 .
I t w i l l c o n t in u e
r
•
s to c k in d u s t r y o f t h is t e r r it o r y th e
to u se a ll its r e s o u r c e s a n d f a c ilit ie s
c o m p l e t e s u p p o r t o f t h is p o w e r f u l
f o r th e f in a n c in g a n d u p b u i l d i n g o f
b a n k in g o r g a n iz a t io n .
th e liv e s t o c k in d u s t r y , a n d in v ite s .
.... „
T h i s b a n k n o w h a s a v a il a b le f o r th e
y o u to m a k e it y o u r r e p r e s e n ta t iv e ,
.
b u s in e s s in te r e s ts o f t h e S t o c k y a r d s
at t h e s t o c k y a r d s .
’»
O F F IC E R S
A . G. S A M , P r e s id e n t
H . B. S C O T T , V ic e P r e s id e n t
C. L . F R E D R I C K S E N , C a sh ier
M . A . W I L S O N , A s s is ta n t C a sh ier
W . G. N E L S O N , A s s is ta n t C ashier
L iv e St o c k Na t io n a l b a n k
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
S I O U X CITY
A F F IL IA T E D W ITH
IOWA
\
N O R T H W ESTEBAN CORPORATION
Northwestern Banker
October 1929
104
This departm ent o f T H E N O R T H W E S T E R N B A N K E R is to
assist subscribers in o b ta in in g good s or service hard to find.
It is free to subscribers. To non-subscribers the charge is
five cents per w ord. Hse it. A S K ITS, as w e can tell you
w here to bu y a n yth in g y ou need in your ba nk or fo r your
bank. T E L L US, as your ‘ ‘ w a n t” w ill be published under
the above heading free o f charge. In answ ering classified
advertisem ents w hich have k ey num bers please enclose a
tw o-cen t stamp. This is used to fo rw a rd y ou r letter.
P o s itio n W a n te d — B y m an 50 y e a rs o f
a g e w ith 25 y e a r s ’ c o u n tr y ba nk e x p e
rien ce. F u lly co m p e te n t to ta k e m a n a g e
m en t o f c o u n tr y ba nk b u t w ill a cce p t
su b o rd in a te p o s itio n . A c tiv e , ra p id , a c
cu ra te . E x p e rie n ce d in in su ra n ce a g e n cy
w o rk and in co n v e y a n c in g and ex a m in in g
title s . B est o f r e fe re n ce s . A d d re s s N o.
3111, ca re N o rth w e s te rn Banker.-— 10.
P o sitio n w an ted as ca sh ier or a s s is t
an t ca sh ie r in a g o o d ba nk in c ity o f 1,500
o r m o re , b y m a rrie d m a n 34 y e a rs old,
w h o h as had o v e r 12 y e a r s ’ b a n k in g e x
p e rie n ce , the p a st five y e a rs b e in g w ith
the Io w a B a n k in g D e p a rtm en t in r e
ce iv e rsh ip w o rk , still em p lo y e d .
Could
m a k e sm all in vestm en t.
B est o f r e f e r
en ces.
A d d re s s N o . 3104, c a re N o r th
w e ste rn B a n k e r/— 9-10-11.
W a n te d : P o s itio n as A s s is ta n t C a sh
ie r in C o u n ty S ea t bank, p r e fe r a b ly in
C en tra l o r W e s te rn Iow a . E ig h t y e a r s ’
e x p e rie n ce as C a sh ier in sm all co u n try
bank.
45 y e a r s o ld ; m a rrie d ; P r o te s
ta nt.
A d d re s s N o. 3110, ca re N o r th
w e ste rn B a n k er.— 10.
P o s itio n W a n te d — In g o o d g r o w in g
bank or c o rp o r a tio n , in a g o o d sch ool
tow n . W o u ld in v e s t in sm all b lock o f
s to ck i f ch a n ces f o r a d va n cem en t w ere
g o o d . F ift e e n y e a rs o f b a n k in g e x p e r i
en ce. A m n o w e m p loy ed , f o r p a s t nine
y e a r s c a s h ie r o f c o u n tr y bank. A m m a r
rie d , a g e 38, P ro te sta n t. R elia b le r e f
e ren ces. A d d re s s N o. 3099, ca re The
N o rth w e s te rn B a n k er.— 8-1.
B ank b oo k k e e p e r w a n ted — S in g le m an
w ith som e ex p e rie n ce , w illin g to w ork .
A d d re s s N o. 3112, ca re N o rth w e s te rn
B a n ker.— 10.
P o sitio n W a n te d — Y o u n g la d y desires
p o s itio n as b o o k k e e p e r in ba nk in Iow a .
T h ree y e a r s ’ ex p e rie n ce in ba nk and can
fu rn ish g o o d r e fe re n ce .
A d d re s s N o.
3107, ca re N o rth w e s te rn B a n k er.— 10.
C a sh ier’s or A s s is ta n t C a sh ier’ s p o s i
tio n in m ed iu m sized bank is s o u g h t b y
m a rrie d m an 34 y e a r s old. 10 y e a r s ’ e x
p erien ce .
6 y e a rs sm a ll c o u n tr y bank,
and 4 y e a rs w ith one o f th e la r g e s t M idW e s te rn B anks. P r e fe r c o n n e ctio n w ith
sto ck in vestm en t. P re s e n tly em p loy ed as
Office M a n a g er w ith la rg e m erca n tile in
stitu tion .
A d d re s s N o. 3113, ca re The
N o rth w e s te rn B a n k er.— 10.
Y o u n g la d y in terested in w o rk in sm all
to w n b a n k ; m u st ta k e d icta tion , op era te
B u rro u g h s P o s tin g and A d d in g m a ch in es,
U n d e rw o o d ty p e w rite r , m a k e s e lf g e n e r
a lly u sefu l.
A d d re s s E x ch a n g e B ank,
M a rcu s, Iow a .— 10.
W a n te d — G ood u sed O liv e r ty p e w rite r,
12 -in ch c a r ria g e p r e fe rr e d . A d d re s s N o.
3106, ca re N o rth w e s te rn B a n k er.— 10.
M an 29, w ith six y e a r s ’ b a n k in g e x p e
rien ce, w a n ts p o s itio n in g o o d bank. Can
fu rn is h
r e fe re n ce .
W hat
h ave
y ou ?
A d d re s s N o. 3108, ca re N o rth w e s te rn
B a n k er.— 10.
W a n te d — A n a s sista n t ca sh iersh ip in
a c o u n try ba n k in a g o o d fa r m in g c o m
m u n ity ; 30 y ea rs old, 12 y e a rs o f c o u n
t r y b a n k in g .
M a rried .
Scan din a via n .
S m all tow n d esired . A d d re s s N o. 3103,
ca re N o rth w e s te rn B a n k er.— 9-10-11.
Square’ s
t
H o tel
450 B a tto
\U
W a n te d — M a rried m an, th ir ty -s e v e n
y e a rs old, P ro te sta n t, th irteen y e a r s ’ e x
p e rie n ce in all lin es o f g e n e ra l ba n k in g ,
w a n ts ba nk c o n n e ctio n w h ere h ard w ork
w ill be a p p re cia te d and rew a rd ed . E x
p erien ce d in cred it, in su ra n ce an d fa r m
r each ro o t»-
A c c o u n ta n ts
Oldest firm in Des M oines
Call us for certified work
n request
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Hotel
in the World
Forty-Six
Chicago’s
M O R R IS O N
C lo s e s t in t h e c it y to o ffic e s,
Steel and Copper Engraved
S T A T I O N E R Y , B U S IN E S S
ANNOUNCEM ENTS AND CARDS
The
October 1929
Tallest
H O TE L
F o r q u a l i t y w o r k ad dr e s s
Northwestern Banker
T h e N e w M o r r is o n
w h e n c o m p le t e d , w il l
c o n t a in 3,400 r o o m s .
C o r n e r M a d i s o n a n d C la r k S ts.
V ì i *
P ooU et
The Doctor’s Blunder
“ W h a t’ s the m atter, R astus, y o u seem as
m ad as a w et h e n ? ”
“ W e ll, w h y sh ou ldn ’t I b e ? The d o c to r
w hat op era ted me fo h p en d icitu s w ent and
sew ed me u p w if w hite th rea d .”
1106 C o m m o n w e a lt h B u ild in g
ie c t o B a t h
rated
there the b o y s told him to g o in the house
an d get a g o o d seat at the table. H e did.
I w o n ’t tell y ou ab ou t the su rrou n d in gs
but a n y w a y — this fe llo w isn ’t quite so
n erv y n ow . H e d oesn ’ t pu sh h im self in
w here he isn ’t w an ted quite so often .
T he bank is b eg in n in g to bill these sales
n ow that w ill take p la ce th rou gh ou t the
w in ter until the first o f M arch.
Q ueer, that y o u should ask me about
ou r S tu d y C lub at a tim e w hen its the
talk o f th e tow n .
M a y b e I ’ll tell you
w h a t’ s h a p p en ed and m a yb e I tvon’t.
W e ’ll see.
Y o u r s f o r the C ou n try Sale,
M U E H LE , R EAM & M cC LA IN
„ B e * ----------51
lo o t »
The Banker’s Wife
(C o n tin u e d f r o m p a g e 22 )
Stories High
o u ts id e
w in d o w s
loa n s.
C a n n ot m a ke in ve stm e n t bu t
m ig h t c o n s id e r . la ter.
W ill g la d y f u r
nish r e fe re n ce s and a r r a n g e f o r p erso n a l
in terview . A d d re s s N o. 3109, ca re N o r th
w estern b a n k er.— 10.
H o m e ste a d
Com pany,
D es
M o in e s
t h e a t r e s , sto r e s a n d
r a i lr o a d s t a tio n s
1944 Rooms $2.50 up
A l l o u t s id e w it h b a th , r u n n in g ic e
w a te r, b e d -h e a d la m p an d S e r v id o r . A
h o u s e k e e p e r o n e a c h flo o r.
A l l g u e s ts
e n jo y g a r a g e p r iv ile g e s .
105
Bank Liquidates
N ebrask a
B a n k N ew s
)
Officers Nebraska Bankers
Association
P r e s id e n t ............................................. P h il H a ll
G re e n w o o d
C h a irm a n o f the E x e cu tiv e
C o u n c il........................... P . R . E a s te r d a y
S e c r e t a r y ............................ W m . B . H u g h e s
P H IL H A L L
P r e s id e n t
T r e a s u r e r ............................. A r t h u r L . C oa d
O m aha
Statement of Condition
G e o rg e W o o d s , N eb ra sk a B a n k C om
m issioner, in a statem ent o f the con d ition
o f the 688 state ch a rtered banks at the
close o f business, Ju n e 29th, m ade early
in S ep tem b er, p osted d ep osits a g g re g a t
in g 220 m illion dollars, d iv id ed as f o l
low s :
D e p o sits su b je ct to check, $85,275,8 6 0 .4 4 ; dem an d certificates o f d ep osit,
$2 0 ,4 3 6 ,4 0 6 .8 8 ; tim e certificates o f de
p o sit, $9 6 ,9 3 5 ,8 1 1 .6 3 ; sa vin gs accoun ts,
$ 1 5 ,65 3,77 8.26 ;
certified
and
cashiers
checks, $1,062,133.45.
M r. W o o d s an n ou n ced that the banks
in clu d ed in the r e p o rt n ow h ave 20 p er
cent cash reserves, con sid era b ly in excess
o f the am oun t re q u ired b y law , and a bon d
reserve o f 16 p e r cent.
L o a n s and discou n ts o r m ortga ges
am oun ted to $156,498,766.98.
The detailed r e p o r t :
R esou rces : L o a n s and discou n ts, $156,4 9 8 ,7 6 6 .9 8 ; o v e rd ra fts, $ 3 3 5 ,6 1 5 .9 7 ; bon ds
an d securities, $3 6 ,8 6 8 ,6 4 5 .8 3 ; ju d g m en ts
an d claim s, $ 1 ,7 2 7 ,3 3 1 .7 5 ; b a n k in g house,
fu rn itu re
and
fixtures,
$ 5 ,9 41 ,4 35 .1 1;
oth er real estate, $8 ,2 1 5 ,4 3 5 .1 9 ; due fr o m
banks, $3 7 ,0 5 2 ,5 1 1 .1 4 ;
la w fu l
reserve
bank o r oth e r reserve agents, $1 2 5 ,1 3 2 .1 7 ;
cash, $ 8 ,5 4 6 ,2 2 5 .1 8 ;
cu rren t expenses,
taxes and interest p a id , $ 2 7 ,4 5 3 .8 5 ; total,
$255,338,553.17.
L ia b ilitie s : C a p ita l stock, $1 8 ,0 9 1 ,0 0 0 ;
su rplu s, $ 5 ,8 4 7 ,7 1 3 .8 9 ; u n d ivid ed p rofits,
$ 2 ,5 1 5 ,7 6 2 .4 9 ; reserve f o r dividen ds, c o n
tingencies, interest, taxes, $6 9 0 ,9 0 3 .2 2 ;
in d iv id u a l d ep osits s u b je ct to check, $85,27 5 ,8 6 0 .4 4 ; dem and certificates o f dep osit,
$2 0 ,4 3 9 ,4 0 6 .8 8 ; tim e certificates o f de
p o s it, $9 6 ,9 3 5 ,4 0 6 .8 8 ; sa vin gs deposits,
$1 5 ,6 5 6 ,7 7 8 .2 6 ;
certified
and
cashiers
checks, $ 1 ,0 6 2 ,1 3 3 .4 5 ; due to banks, $5,07 9 ,2 9 0 .9 9 ; n otes an d bills red iscou n ted ,
$ 6 7 9 ,8 6 9 .9 5 ; bills p a ya b le, $3 ,0 1 8 ,0 1 9 .3 8 ;
d e p o s ito rs g u a ra n ty -fu n d , $4 6 ,0 0 2 .5 9 ;
total, $225,338,553.15.
To Reorganize
R e o rg a n iza tio n o f the F a rm ers State
B a n k o f C ollegeview , N ebraska, w as v oted
b y d e p o s ito rs at a m eetin g at Avhich the
d e p o s ito r s ’ com m ittee m ade its re p ort.
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Federal Reserve Bank of St. Louis
W M . B. H U G H ES
S e c r e ta r y
In d eliverin g their re p ort, m em bers o f
the d e p o s ito rs’ com m ittee an n oun ced that
those w ho had m on ey in the bank w ould
su ffer con sid erable loss i f the bank re
op en ed , instead o f g o in g in to receiversh ip.
W h e n the ba nk is first op en ed , th ey said,
not o v er 10 p e r cent can be realized on
deposits.
Cashier Dies
W illia m C. F . L u m ley, 52, cashier o f
the F irs t State B a n k o f B ea ver C ity,
N ebraska, died at R och ester, M inn esota,
a fte r a su rgica l op era tion . H e leaves a
w id ow , daughter and a son.
Convention Speakers
A m o n g sp eakers w ho w ill address the
con v en tion o f the N eb ra ska B a n kers A s
socia tion in Om aha N ov em b er 6 and 7 are :
S. P . A r n o t, p resid en t o f the C h icago
B o a rd o f T rade ; T. B. P a ton , J r., assistant
general counsel o f the A m erica n B ankers
A sso cia tion , N ew Y o r k ; H . N. S tron ck ,
ba nk m anagem ent sp ecia list o f C h icago ;
C arl D . G anz, cashier o f the F a rm ers and
M erch a n ts B ank, A lv o , N ebraska, and J .
V . W eb ster, cash ier o f the F irs t N a tion al
B ank, C h ad ron , N ebraska.
N ea rly 1,500 state and n a tion a l b a n k
ers o f N ebraska are exp ected .
G eneral
sessions w ill be at the P a x ton .
Vote to Reorganize
Several h un dred d ep os itors o f
the
B ru n sw ick State B a n k at B ru n sw ick , N e
braska, v oted u n a n im ou sly to p roceed
w ith p la n s f o r its reorg a n iza tion , a fte r
the situ ation had been ou tlin ed f o r them
by State B a n k C om m ission er W o o d s , w ho
also la id dow n the requ irem ents that w ill
have to be m et b e fo r e the in stitu tion is
a llow ed to resum e business.
A com m ittee c o m p risin g H . C. Joh n son ,
E . R ich , S. G reen am yre, L. H . H offm a n ,
an d L. G. Jen sen w as a p p o in te d to a ct on
b e h a lf o f all the d ep ositors in g o in g over
the n otes and oth er assets w ith the state
bank exam iner in charge. T his com m ittee
w ill r e p o rt to the d ep ositors at an oth er
m eetin g and its recom m en d ation s w ill be
su b ject to th eir a p p ro v a l.
L iq u id a tion o f the P ota sh State B a n k
at A n tio ch , N ebraska, th rou gh the p a y
m ent to d ep os itors o f the fu ll am ounts du e
them and fo r m a l a ction b y th e sto ck h o ld
ers d issolv in g the c o rp o ra tio n , is an
n ou n ced b y State C om m erce S ecreta ry
B liss, w ith w hom a certificate has been
filed to that effect. The in stitu tion w as
a v e ry sm all one and was u n d er co n tro l
o f the first State B a n k at A llia n ce , w hich
has a rran ged to con tin u e b a n k in g service
to the fo r m e r ’ s p a tron s w ho desire it.
H . A . C op sey, presid en t, an d C harles
B rittan , vice presid en t, o f the A llia n ce
bank held the same p ositio n s, re sp e ctiv e ly
in the one th at has been liq u idated. A n
tioch w as a b o o m tow n w hich g re w u p
d u rin g the w a r w hen several p ota sh p la n ts
w ere established there to p ro d u ce fa r m
fe r tiliz e r and m u n ition m a terials b y e v a p
o ra tin g w ater fr o m the shallow p o n d s in
the v icin ity . A ft e r the w ar, w hen su p
plies o f G erm an p ota sh becam e available
o n ce m ore, the in d u stry fe ll in to decline
and the p la n ts w ere closed and dism antled.
L ittle rem ain s o f the on ce flou rish in g
tow n , an d the P ota sh State B a n k w as
closed f o r w ant o f p a tron a g e to s u p p o rt it.
Opens in Sutton
T he S u tton, N ebraska, State B a n k
o p en ed f o r business w ith the fo llo w in g
o ffic e r s :
P residen t, W . F . H o e r g e r ; v ice p r e s i
dent, W illia m L e v a n d e r; cashier, F re d a
J. A d k in s ; assistant, E d K ir c h h e fe r ;
D irectors,
W.
F.
H o e rg e r,
W illia m
L evan der, F re d a J. A d k in s, E d . K ir c h
h efer, D r. J. M . W elch .
The bank is reorg a n ized w ith $50,000
p a id -in cap ital.
Soon Completed
W ith $357,000 d ep o sits h a v in g been
sign ed b y the d e p o s ito r ’ s com m ittee in
ch a rg e o f the reorg a n iza tio n o f the A m e r
ica n State B ank, K e a rn e y , N ebraska, o n ly
10 p e r cent a d d ition a l signers are neces
sary b e fo r e the reorg a n iza tio n can be
com p leted .
C om m ittee m em bers a ver that the re
orga n iza tion f o r the in stitu tion is as
sured. A c c o r d in g to ba nk officials, the re
m a in in g 10 p e r cent, com p o se d f o r a la rg e
p a rt o f sm all d ep ositors, w ill be collected
soon.
Reopens
The St. L ib o ry , N ebraska, State B a n k
reop en ed f o r business recen tly, w ith a c o m
p lete n ew reorg a n iza tion .
M . A ld en , a lu m b er dealer at St. L ib o ry ,
is p resid en t o f the reh a bilita ted b a n k ;
R a lp h H a g g a rt, St. P a u l attorn ey, is vice
presid en t, and B en B . M cN a ir, rece n tly o f
K im b a ll, is cashier.
These three, w ith
C harles B osselm an and A lfr e d D am m ann,
are the p r in cip a l stockh olders and con sti
tute the b o a rd o f directors.
Northwestern Banker
October 1929
106
The ca p ita l stock o f the reorg a n ized
bank is $15,000 and the su rp lu s is $3,000,
all p a id in. The stock h old ers are all new.
With Omaha National
" J
M . L. V a n H o rn e i s . n o w in , Omaha,
w here he w ill be p la ce d -in ch a rge o f the
real estate d epa rtm en t o f the O m aha N a tio n a L B a n k ; . ;
L
A ft e r g ra d u a tin g !fro m thè P aw n ee C ity
h igh sch ool M r. V a n H o rn e attended the
U n iv ersity o f N ebraska, then retu rn ed to
beg in his b a n k in g career u n der th e. tu te
la g e o f his fa th er, p resid en t o f the F a r m
ers State B ank .
L a ter he m ade con n ec
tion " .with the F a rm ers and M erch a n ts
S tate B a n k at M cC o o k , w here his business
a b ility w as soon recog n ized . A f t e r bein g
at M cC o o k a short tim e he w as en ga ged
as a* sp ecia l agent o f the state ba n k in g
d epa rtm en t and p la ce d in charge o f
several banks b y the departm en t.
Leav
in g this p o s itio n , he w as elected cash ier
o f the F a rm e rs State B a n k at E a ston ,
M issou ri, w here he has been f o r several
years.
E van s, p ion eer residen t o f H a m ilton
cou n ty and A u r o ra , N ebraska, has resigned
ifrorn all official con n ection w ith the F a rm fers State B ank.
The a ction cam e as a
•surprise to scores o f M r. E v a n s2 old a c
qu aintan ces and m a n y o f - ‘ his business
associates.
A p p r o a c h in g the age o f 70
jand w ith health im p a ired , M r. E van s de
c i d e d to fr e e h im self fr o m all la rge busi
ness r e sp o n sib ility at on ce and p u t the
■decision in to im m ediate action.
|;
Resigns
F ra n k J. Y o u n g , N o r f o ’ k, a b a n k er in
northeast N eb ra ska f o r the pa st tw en tyseven years, and f o r the p a st six years co n
nected w ith the N o r fo lk N a tion al B ank,
is n ow treasurer o f the N ebraska F u r
F a rm s n orth o f M adison.
M r. Y o u n g resign ed his ba nk p ost
and com m en ced his new w ork at the fa rm
recen tly. In his c a p a city as trea su rer f o r
the co rp o r a tio n he w ill have charge o f all
disbursem ents. P r io r to co m in g to N o r
fo lk , M r. Y o u n g w as identified w ith the
F a rm ers N a tion al B a n k at P ilg er.
Retires__
F o llo w in g -a re co rd o f lo n g
tive a ssocia tion w ith several
m u n ity ’ s m ost , p rom in en t
several o f w hich he h elp ed to
’
F lo a t
years o f ac
o f the c o m
in stitu tions,
fo u n d , J. L.
C h arges
The
N ebraska
B a n kers -A s s o c ia t io n
R ecord , in an official statem ent recen tly
re g a rd in g float charges, had this to s a y :
“ W e have h op ed f o r the d a y w hen o u r
member bankers would lend a responsive
ear to the suggestion o f a charge on all
out-of-town Checks deposited by cus
tomers or cashed for them, but we haye
found every time we broached the subject
to a banker, that it seemed too much o f
a departure from established customs,
and wre never felt that those with whom
we talked .about it would take action.
“ W e are deligh ted to find that the F irst
N ebraska R e g io n a l C lea rin g H ouse asso
eia tion at F rem on t is seriou sly c o n s id e r
in g the question, h a v in g discussed it
th orou g h ly at on e m eetin g, a d o p tin g resoL
lu tion s fa v o r in g such float charges, and
wTill g iv e it fu rth e r con sid era tion , and
p o s sib ly definite a ction, at a m eetin g to
be held in F rem on t som e tim e th is m onth.
“ T he tra n sp o rta tio n o f
m on eys o r
credits arou n d the co u n try is a distinct
service p e r fo r m e d b y the b a n k in g busi
ness and is n ot in clu d ed in the tacit u n d er
stan d in g w ith custom ers w hen th ey op en
th eir accoun ts.
T he ba nk a grees to ac
cep t m on ey over the cou n te r and p a y it
b a ck o v er the cou n ter on dem and. It does
n ot agree to g o to som e other tow n f o r th e
m on ey n or to p a y it ba ck in som e o th e r
tow n . B a nkers are p e r fe c t ly ju stified in
m a k in g a cha rge w hen a custom er, w ho has
m on ey at som e oth er p o in t, asks the bank
to g o there and get it f o r him , w hich he
does ask w hen he d ep osits a check on a
bank in som e oth er p o in t.”
NOW
OPEN
C a r e fu lly S e le c te d B o n d s
may be procured through our
B o n d D e p a r tm e n t
"fq-.
W rite us
LIVE S T O C K N A T IO N A L B A N K
Union Stock Yards— O M A H A
W . P. A D K IN S , President
A L V I N E. JO H N SO N , Vice President
H O W A R D O. W IL S O N , Cashier
R. H . K R O E G E R , Assistant Cashier
L. V. P U L L IA M , Assistant Cashier
W . S. H O G U E , Assistant Cashier
-flÍHlir
NEW YORK
ike
Beautiful
• ‘ * HOTEL ‘ ‘ -
PLYMOUTH
-4 9 $ ST. EAST OF BROADWAY
Complete Financial Service
N a t io n a l B a n k .
•T ru st C o m p a n y
Omaha
Northwestern Banker
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Federal Reserve Bank of St. Louis
October 1929
50
Daily
for a room equipped with bath,
circulating ice water and
• RADIO"!
^
Single_____________ $2.50, $3.00, $3.50
l)ouble_$4.00, $4.50, Twin Beds $5.00
NEAR BUSINESS, SHOPPING
and THEATRE CENTER
~*r
107
Omaha National Elects
R a y R . R id g e has been elected a vice
p resid en t o f the Om aha N a tion a l B ank.
M r. R id g e is n ow v ice p resid en t o f the
F ir s t N a tion a l B a n k o f St. J osep h , M is
sou ri. H e w ill assum e his new duties in
O m aha ab ou t N ov em b er 1st.
With Omaha National
In a n on u n cin g M r. R id g e ’ s election,
W a lte r W . H ead , chairm an o f the boa rd ,
s a id : " M r . R id g e b rin gs to his new a ctiv
ity in the O m aha N a tion a l B a n k a th o r
ou g h ly r ip e b a n k in g ex p erien ce.
H e is
a y o u n g m an o f fine ch a ra cter and it is a
grea t pleasu re to m e to be able to asso
ciate him w ith ou r org a n iz a tio n .”
R a y R . R id g e, vice presid en t o f the F irst
N ation al B a n k o f St. J osep h , has been
elected vice p resid en t o f the O m aha N a
tiona l B ank.
M r. R id ge, w ho is n ow 35, began w o rk
in g f o r the bank 21 years ago, as office
b oy, w hile g o in g to high school. H e was
W.
D ale C lark, p resid en t o f the O mahaelected vice p resid en t in 1925.
H e has been presid en t o f the St. J osep h
N a tion a l B a n k, also an n oun ces the a p
C redit M en ’ s A s so cia tio n and f o r the past
p oin tm en t o f M r. C. J. F low ers as an
three yea rs has been chairm an o f the
assistant cashier, effective N ov em b er 1st.
cou n ty d ivision o f the M issou ri B ankers
M r. F low ers is n ow assistant cashier o f
A ssocia tion .
the G en try C ou n ty B a n k o f A lb a n y , M is
H e w ill take his n ew p o s itio n N ovem ■
sou ri. H e is tw en ty -n in e years old and a
ber 1st.
gra d u a te o f the U n iv ersity o f M issouri.
R A Y R. R ID G E
M r. R id g e is th irty -five years old. H e
en tered the service o f the F irs t N a tion al
B a n k o f St. J o s e p h tw en ty yea rs a g o as
a m ail b o y and w as su ccessfu lly p rom oted
th rou gh v a riou s p osts in the b a n k ’s o r
g a n iza tio n . H e has been active in affairs
s
i g
n
i f
— THE
i c
a
n
NAMES
W H IC H
USE
t
OE
T H IS
BANKS
PAPER
S id e b y s id e in tlie s a m p le b o o k o f c h e c k s m a d e o n L a
M o u le N a tio n a l S a fe ty P a p e r y o u
w ill fin d
tlie n a m e s
o f n a t io n a lly k n o w n b a n k s in a l l s e c t io n s o f t h e c o u n try .
S ig n ific a n t — b e c a u s e it s h o w s t h a t N a t i o n a l S a fe ly
P a p e r is as v a lu a b l e a n d w o r t h w h il e in A t la n t a o r S a n
F r a n c is c o as it is in N e w Y o r k o r P it t s b u r g h .
— i m p r e s s i v e n e s s — s a f e t y — th e s e
P a p e r th e
'
D ig n i t y
‘ a k e N a t io n a l S a fe ty
standard in check papers.
C o m p a r e y o u r o w n c h e c k s w ith t h e s a m p le s in th is
li t t l e b o o k — w h ic h
is y o u r s f o r th e a s k in g . G e o r g e L a
M o n te & S o n , 61 B ro a d w a y , N e w Y o r k .
C. J. FL O W E R S
o f the M isso u ri S tate B a n k ers A s so cia tio n
and in the A m e rica n In stitu te o f B a n k in g.
D u rin g the w a r M r. R id g e served in
F ra n ce w ith the 356th In fa n tr y o f the
89th D ivisio n . H e is an a ctive m em ber o f
the A m e rica n L eg ion .
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
L A
F R E E — An unusual
M O N T E
sample book of checks,
N
A
T
I
O
N
A
F
S A F E T Y
L
O
R
C
H
E
C
K
P A P E R
S
14-L,madeonLa Monte
National Safety Paper.
Northwestern Banker
October 1929
108
Will Be Repealed
A p re d ictio n that the N ebraska Bank
G u a ra n ty F u n d law w ill be rep ea led by
the 1931 legislature w as m ade in C olu m
bus recen tly, b y S tate S en a tor Jam es A.
R odm an , o f Om aha, in bis debate w ith
A tto r n e y G eneral C. A . S oren son , o f N e
braska, on the m uch discussed g u a ra n ty
fu n d system . H is p re d ictio n fo llo w e d an
attack u p o n the presen t system d u rin g
Avhich he term ed its su ccessfu l op era tion
an econ om ic im p o ssib ility .
A tto r n e y G eneral S oren son argued f o r
the reten tion o f the g u a ra n ty fu n d ‘ ‘ until
at least the 50,000 d ep ositors w ho have
lost m on ey in fa ile d ba nks are p a id in
fu ll.” The qu estion w a s : “ R esolved, that
the N ebraska G u a ra n ty F u n d law be r e
ta in ed .”
The debaters w ere billed as the fea tu re
attra ction o f the secon d d a y o f the m idN ebraska ex p osition .
For Seventy-Two Years
The M erchants N a tion al B ank, oldest
in N ebraska, was 72 yea rs old S ep tem b er
19th.
The hank started S ep tem b er 19, 1857,
as Cheever, Sw eet & C om p a n y, becam e
su ccessively Jam es Sw eet & C om p a n y,
Ja m es Sw eet N a tion al B ank, M erchants
N a tion al B ank.
“ B o b ” M arn ell and “ J im ” Shew ed,
cashier and presid en t, have been asso
ciated w ith the in stitu tion since 1886 and
1897 resp ectiv ely , w hile F re d H om ey er,
a director, has been associated w ith the
Se r v i c e s have been developed by this ban k
for the use o f its correspon den ts—
in g business—
A L in e o f In q u iry W ill B rin g
You C o m p le te P a rtic u la rs —
W h y N o t W rite T o d a y ?
The National B ank o f the
R E P U B L I C
C H I C A G O
•
The N enzel State B a n k , o f N enzel, N e
braska, con solid a ted th eir resou rces w ith
those o f the R a n ch ers State B a n k , o f
C od y recen tly, an d its custom ers w ill now
be served b y the R a n ch ers State B ank
at C ody.
The reason g iven f o r the co n solid a tion
is to b etter serve the com m u n ity b y the
con cen tra tion o f resou rces in to on e la rge
bank, w ith a v iew to better service to
th eir custom ers.
To Reorganize
Three m o re ba n k s in N eb ra sk a are
lik ely to be re o rg a n ize d and reop en ed
th rou g h co m p o s itio n settlem ents w ith de
p os itors, as the resu lt o f m eetings held
w ith th eir p a tro n s b y S tate B a n k C om m is
sion er W o o d s . These a r e :
S ecu rity B a n k at M ea d ow G rov e, F a r m
ers & M erch a n ts B a nk at E d iso n , F arm ers
S tate B a n k at Clarks.
A t each p la ce a d e p o s ito rs’ com m ittee
w as nam ed to can vass the situ ation and
ascertain h ow m uch had, d o u b tfu l and
slow p a p e r w ill have to be taken out, t o
geth er w ith real estate, and to arran ge
f o r can cellation o f the old ca p ita l stock
and re su b scrip tion f o r the shares in cash.
“ It is p r a c tic a lly certain that the E d i
son and C larks ba nks w ill both be re
stored to solven cy ,” said C om m ission er
W o o d s . “ W e had fine m eetin gs there and
the d e p o s ito rs Avere o f on e m in d that their
com m u n ities sh ou ld n ot be le ft w ithout
b a n k in g fa c ilitie s .”
*
Banking—All Departments
An Expert Slicer
AFFILIATED
A recen t colleg e g ra d u a te a p p lie d in
the lo ca l b u tch er sh op f o r a jo b .
The
b u tch er look ed him o v e r c a r e fu lly an d then
s a id : “ W e need an en ergetic y o u n g man
to run the slicin g m achine. H a v e y o u ever
had a n y e x p e r ie n c e 1?”
“ I used to p la y g o l f . ”
CHICAGO
C O M P A N Y
THE
NATIONAL
REPUB LI G
• • C O
XI P A N
Y
C o m p le te T r u s t S erv ice
I n v e s t m e n t S e c u r i ti e s a n d
R ea l E sta te L oa n s
C o r p o r a te F in a n cin g
© N . B. R. 1929
I t ’ s still p os sib le to find p a y dirt. L ittle
W illie g ets a n ick el f o r w a sh in g his neck.
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
October 1929
A
T he N a tion al B a n k o f the R e p u b lic o f
C h icago has an n oun ced an oth er in crease
in its reg u la r div id en d rate. T he latest in
crease w as v oted at the S ep tem b er m eetin g
o f the B o a rd o f D irectors w hen it Avas
v oted to m ake a. q u a rterly p a ym e n t o f 4
p er cent, o r 80 cents a share, on the $20
p a r stock, as com p a red w ith 3 p e r cent, or
60 cents a share, p re v io u s ly p a id .
T h is latest ad vance p u ts the stock on a
16 p e r cent annual basis, or $3.20 a year,
as com p a red w ith 12 p e r cent, o r $2.40 a
year, p re v io u s ly p a id . T he cu rren t d iv i
dend is p a y a b le S ep tem b er 30th to sto ck
holders o f r e co r d on S ep tem b er 24th.
secu rin g n ew business and in creas
TRUST
{
Another Dividend Increase
services that offer definite help in
O F
a
Consolidated
108 Sp e c i a l
• ♦
in stitu tion in v a riou s cap a cities, fr o m
clerk sh ip u p w a rd , f o r 43 years.
Í
109
Minnesota
Bank News
Officers Minnesota Bankers
Association
P r e s id e n t .........................R . W . P u tn a m
R e d W in g
V ic e P r e s id e n t ......... C. B. B ro m b a c h
M in n e a p o lis
T r e a s u r e r ........................ T. A . P e r k in s
W in d o m
R. W . P U T N A M
P r e s id e n t
S e c r e t a r y ......................... G e o rg e
M in n e a p o lis
Susens
GEORGE SU SENS
S e c r e ta r y
Affiliates with Northwest
T
H E S tock Y a r d s N a tion a l B a n k o f
Sou th St. P a u l last m onth an n oun ced
its affiliation w ith 38 oth er lea d in g
banks and trust com p a n ies in the N o rth
w est B a n co rp ora tion g ro u p .
and allied in du stries, w e g rea tly increase
o u r c a p a city f o r service to th is com m u n
it y .”
P resid en t-elect F . A . B irch said, “ M a n y
advantages w ill accru e to Sou th St. P a u l
A t the same tim e, E . W . D eck er, p r e s i
dent o f the N orth w est B a n c o r p o ra tio n and
the N orth w estern N a tion a l B ank, M in n e
a p olis, an n ou n ced the a p p oin tm en t o f A le x
H ig h la n d , p re sid en t o f the S tock Y a rd s
N a tion al B ank , as assistant gen eral m a n
a ger o f the N orth w est B a n co rp o ra tio n .
M r. Etighland w ill becom e chairm an o f
the b o a rd o f the S tock Y a r d s N a tion al
B ank, and w ill be succeeded as presid en t
b y F . A . B irch , n ow v ice presid en t.
New Building
The F irs t N a tion al B a n k o f St. P au l,
w hich is affiliated w ith the F irst N a tion al
B a n k in M in n ea p olis and 42 oth er n o rth
w est banks in the F irs t B ank. S tock c o r
p ora tion ,
an n oun ced
com p leted
pla n s
recen tly f o r the new ba nk b u ild in g w hich
it w ill erect at a cost o f $2,500,000 at
M in n esota and F o u rth Streets. The new7
ba nk and office b u ild in g w ill have 21
stories, w ith fr o n ta g e o f 130 fe e t on
F ou rth Street and 100 on M inn esota, and
w ill a d jo in the presen t M ercha nts B a n k
B u ild in g , loca ted at R o b e rt and F o u rth
Streets.
T he S to ck Y a r d s N a tion a l B a n k has
ca p ita l, su rp lu s and u n d ivid ed p rofits o f
$545,934, d ep osits o f $4,492,015 and re
sou rces o f $5,210,920.
B a nks an d trust
co m p a n ie s affiliated in the N orth w est B a n co rp o r a tio n have total resou rces o f $360,-
000,000.
The S to ck Y a r d s N a tion al B a n k o f
S ou th St. P a u l is the th ird live stock bank
to unite w ith the N orth w est B a n c o r p o ra
tion .
In A u g u st, the S tock Y a r d s N a
tion a l B a n k and the Sou th O m aha S a v
in gs B a n k becam e affiliated w ith the B a n c o rp o r a tio n , b r in g in g w ith them the C a t
tle F eed ers L o a n C om p a n y, In c., a co m
p a n y en ga ged in fin a n cin g the live stock
in d u stry and d o in g a business o f a p p r o x i
m a tely $6,000,000 annually.
A c c o r d in g to a statem ent m ade b y
P resid en t H ig h la n d , the S tock Y a rd s N a
tion a l B a n k o f Sou th St. P au l, one o f the
p io n e e r live stock banks o f the N orth w est,
w as o rga n ize d in 1897 f o r the p u rp o s e o f
fin a n cin g the liv e stock business cen terin g
at the Sou th St. P a u l m a rket and ca rin g
f o r the fin an cial requ irem en ts o f th e trade
te rrito ry trib u ta ry to it. “ A s this com
m u n ity has g ro w n , its fin an cial needs have
in creased, so that, in b ecom in g affiliated
w ith oth er im p o rta n t ba nks w hich are
sym p a th etic to the needs o f the live stock
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
w h m anage the a ffa irs o f the N orth w est
B a n co rp o ra tio n . T w en ty -e ig h t are b a n k
ers and fo r ty -t w o represen t im p o rta n t d i
versified interests o f the N orth w est.”
A le x H ig h la n d , St. P au l, w ho n ow b e
com es assistant gen eral m a n a ger o f the
N orth w est B a n co rp o ra tio n , w ill also be
elected a d irector. M r. H ig h la n d , the sec
on d St. P a u l m an to be chosen to serve on
the B a n c o r p o ra tio n boa rd , has had 25
y ea rs’ ex p erien ce in the co u n try b a n k field.
F o r fifteen years he was v ice p resid en t o f
the A b erd een , Sou th D a k ota , N a tion al
B ank, and on A p r il 1, 1921, becam e p r e s i
dent o f the Sou th St. P a u l B ank .
M r.
H ig h la n d was presid en t o f the South D a
k ota B ankers A s so cia tio n in 1918. D u r
in g his b a n k in g career, he has had a w ide
d iv ersity o f ex p erien ce and has sp ecia lized
in the liv e stock end o f the b a n k in g b u si
ness.
“ The m a na gem ent o f the N orth w est
B a n co rp o ra tio n is v e ry m uch gra tified to
have the services o f M r. H ig h la n d as as
sistant gen eral m anager.
H is ye a rs o f
ex p erien ce in liv e stock, on e o f the p r in
c ip a l and fa stest g ro w in g businesses in the
N orth w est, w ill enable us to k eep better
attu ned to the needs o f th is in d u stry and
help us to g iv e this im p o rta n t in d u stry the
ty p e o f fin an cial service that it req u ires,”
said M r. E . W . D ecker, p resid en t o f the
N orth w est B a n co rp o ra tio n .
A L E X H IG H L A N D
an d the live stock in d u stry b y v irtu e o f
this affiliation w ith lea d in g banks and
ba nkers th rou gh ou t the N orth w est w ho are
sym p ath etic an d resp on siv e to the needs
o f th is territo ry .
On the b oa rd o f the
N orth w est B a n c o r p o ra tio n are to be fo u n d
ou tsta n d in g m en rep resen tin g every im
p o rta n t basic in d u stry. F r o m th e p a c k
in g in d u stry, there are H . G. B lack, assist
ant treasurer, A r m o u r and C o m p a n y ;
J oh n E . W a g n e r, treaseurer, C u dahy
P a ck in g C o m p a n y ; F o r d E . H o v e y , p r e s i
dent, S tock Y a rd s N a tion al B a n k, O m ah a ;
on o u r ow n loca l b oa rd , C. A . Cushm an,
gen era l m a n a ger o f S w ift and C om p a n y,
Sou th St. P au l, and C y ril E . Sheehy, g en
eral m anager, A r m o u r and C om p a n y,
South St. P au l, to be elected.
A lto g e th e r there are seven ty d irectors
G eorge H . P rin ce , chairm an o f the F irst
N a tion al B ank, said that the w o rk o f
clea rin g presen t structures o ff the site
M id la n d
N a t io n a l Ba n k
and
T rust C o m p a n y
i
R eso u rces $ 2 5 ,0 0 0 ,0 0 0 .0 0
t
MINNEAPOLIS
Northwestern Banker
October 1929
110
w ou ld be started w ith in a fe w w eeks and
co n s tru ction w ill g e t u n d er w a y im m e
d ia tely a fte r that w ork is finished. The
stru ctu re design ed b y the architects w ill
d iffe r som ew hat in style fr o m the M er
chants B a n k b u ild in g, but w ill be related
sufficiently in gen eral a p p ea ra n ce to fo r m
a h arm on iou s developm en t.
Gives a Dinner
T hree h undred p erson s attended a
d in n er in the L ea m in gton hotel, M in n e
ap olis, recen tly, that m arked the last act
in the ded ica tion o f the F osh a y tow er.
T h e d in n er w as g iven b y officials o f the
W . B . F o sh a y C o m p a n y, in h on or o f the
m en and w om en w ho p la y e d a p a rt in the
d e d ica tion cerem onies. A m o n g the guests
w ere city officials, officers o f the T h ird
in fa n try , officials o f w om en ’ s clubs, new s
p a p e r m en and em p loyes o f the firm w ho
to o k p a rt in m a kin g arran gem ents f o r
tke dedica tion .
M o tio n p ictu res o f the
cerem onies w ere show n a ft e r the dinner.
Resigns
J. A . R ick ert, f o r the last six years
vice presid en t and m a n a ger o f the F ed era l
In term edia te C redit B a n k o f St. P au l,
has resig n ed his p osition .
N o announcem ent o f the resig n a tion or
the reason f o r it w as m ade at th e tim e.
F . H . K la w o n , p resid en t o f the bank,
confirm ed the re p o rt o f his resign a tion ,
but declin ed an y com m ent o r an n ou n ce
m ent o f reason f o r the change. N o su c
cessor has yet been a p p o in te d , M r. K la w o n
said.
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D IS T I N G U IS H Y O U R S E R V IC E W I T H S U P E R - S A F E T Y C H E C K S O N T H E N E W C H E C K P A P E R
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
October 1929
With Bond Company
Joh n S. G etchell, sp orts w riter and g o l f
e d ito r o f the M in n e a p o lis Daily Star f o r
the p a st seven y ea rs and also secretary
and treasurer o f the M in n esota G o lf A s
socia tion , has entered the securities and
financial field as a m em ber o f tra d in g staff
o f B lyth & C o., C h icago and N ew Y o r k
investm ent b a n k in g house. H is h ead
qu arters w ill be in M in n e a p o lis at the
northw est office o f B lyth & C o., w hich w as
established six m onths a go, w hen the c o r
p o ra tio n acq u ired the business o f the
N orth lan d.
A
4
Affiliates
The F a rm ers N a tion a l B a n k in A le x
an dria, M inn esota, has affiliated w ith th e
F ir s t B a n k S tock C o rp o ra tio n , P a u l J .
Leem an, vice p resid en t and general m a n
ager o f the h o ld in g co m p a n y a n n ou n ced.
The A le x a n d ria ba nk is the 44th fin an cial
in stitu tion to jo in the g ro u p w hich now'
has u nits in 30 cities in the N in th F ederal
R eserve d istrict w ith total resou rces in
excess o f $372,500,000.
T w e n ty o f the
g r o u p ’ s b a n k in g houses are situated in
M in n esota and in clu d e th e F irs t N a tion a ls
an d th eir subsidiaries in M in n e a p o lis and
St. P au l.
T he A le x a n d ria ba n k w as fo u n d e d in
1901. It serves a d a iry in g and h igh ly
diversified a g ricu ltu ra l te r r ito r y in D o u g
las cou n ty.
The d istrict e x p erien ced a
severe b a n k in g crisis in 1925, three o f f o u r
banks in A le x a n d r ia closin g. The F a r m
ers N a tion a l w as the on ly bank in the city
to survive, a ft e r w ith sta n d in g a ru n o f
several d a y s’ du ra tion .
T o d a y the bank
has resou rces o f $1,119,000 and d eposits
o f $987,123.10.
I t is ca p ita lize d at
$100,000 and has a su rp lu s o f $25,000.
T he bank ow ns its ow n m od ern b a n k in g
bu ild in g.
C on stru cted
of
V e rm o n t
gra n ite, it is one o f the sh ow p la ce s o f the
city.
Oversubscribed
The issue o f 200,000 shares o f stock o f
the F irs t B a n k S tock c o rp o ra tio n , M in n e
a p olis, w as ov ersu b scrib ed b y m ore than
10 to one, a cco rd in g to estim ates b y offi
cials o f the F ir s t M in n ea p o lis C om p a n y.
A p p lic a tio n s f o r at least 10 shares to
each one availab le in M in n e a p o lis have
been receiv ed fr o m loca l in vestors since
p la n s f o r the o ffe rin g w ere an n oun ced and
the same ra tio o f o v ers u b scrip tio n is re
p o r te d fr o m oth er cities w here there are
ba nks affiliated w ith the c o rp o ra tio n , in
d ica tin g
an
eq u a lly
stro n g
dem and
th rou g h ou t the n inth reserve district.
Consolidations
N eg otia tion s f o r a p p ro x im a te ly 50 c o n
solidation s are u n der w a y a m on g state
ba nks o f M inn esota, A . J. V e ig e l, M in n e
sota com m ission er o f banks, said recen tly.
In the p a st six years, M r. V e ig e l stated,
147 b a n k con solid a tion s have been accom -
0
1
v>
I ll
¡
p lish ed b y state banks o f M inn esota,
th ereby im p ro v in g and stren gth en in g the
p o s itio n o f banks in the state,
r The n um ber o f state banks op e ra tin g in
■Minnesota has been redu ced b y 388 since
1920, w hen 1,166 banks w ere d o in g b u si
ness u n d er the su p ervision o f the M in n e
sota. b a n k in g depa rtm en t. T h ere are now
.778.
' Merged
F irst N a tion a l B a n k o f B u h l recen tly
to o k o v e r the K in n e y State B a n k o f
K in n e y , M in n esota, A . J. V e ig e l, state
b a n k in g com m ission er an n oun ced.
The K in n e y B a n k had ca p ita l and su r
p lu s o f $16,800 and d ep osits o f $122,000.
T he B u h l B a n k has ca p ita l and su rplu s
o f $52,000 and d ep osits o f $319,000.
Adds Stock Yards National
y
vice presid en t o f the E m p ire N a tion al
B a n k ; H . B . H u m ason , v ice p resid en t o f
the A m erica n N a tion al B ank, an d O tto
M . N elson, v ice p resid en t o f the F irs t
N a tion al B ank.
New Charter
1 , A cha rter w as issued recen tly to the
A m erica n State B a n k o f E rsk in e, M in n e
sota, b y the state depa rtm en t o f com m erce,
'a c c o r d in g 't o A . J . Y eigel.
It au th orizes ca p ita l o f $20,000, surplus
o f $4,000, w hile the ba nk w ill begin bu si
ness w ith $2,000 in its u n d ivid ed p rofits
fu n d . C. M . B e rg is p resid en t and I. I.
Stenerson is cashier.
Merged
M erg er o f the F a rm ers State and the
F irs t N a tion al B a nks o f S p rin g field ,
M inn esota, becam e effective w ith the
fo r m e r in stitu tion ta k in g over the la tter.
The person n el o f the F a rm ers State w ill
rem ain the same, w ith A u g u s t L ip e tz k y as
presid en t, A u g u s t N iem an as vice p r e s i
dent, F . E . P iesch el as cashier and M iss
H a ttie D ah m er as assistant cashier.
C.
H . A s ch , cashier o f the F irs t N a tion al
since its orga n iza tion 23 years ago, b e
com es a v ice p resid en t o f the F a rm ers
State.
J. S. W a tson , p resid en t o f the
F irs t N a tion al since its orga n iza tio n , w ill
retire.
The new' in stitu tion w ill be k n ow n as
the F a rm ers & M erchants B ank.
Celebration
R esou rces o f the F a rm ers & M erchants
B a n k o f St. Jam es, M inn esota, h a v in g
pa ssed the m illion d olla r m ark, the officers
and stockh olders en tertained the citizens
recen tly at a p ic n ic at L o n g Lake.
T he N orth w est B a n c o r p o ra tio n added
the th ird live stock ba nk to its g ro w in g
g r o u p o f affiliated banks and trust co m
p a n ies w ith the an n oun cem en t o f the a c
q u isition o f the S tock Y a rd s N a tion al
B a nk o f Sou th St. P au l. T h is b rin gs to
32 the tota l o f in stitu tion s affiliated w ith
the la rge o rga n iza tion .
T he n ew ly - a ffilia ted ' ba nk is the first
on e in -th e St". P a u l m etrop olita n area to
jo in the B a n co rp o ra tio n .
C oin cid en t w ith the announcem ent, E.
W . D eck er, p resid en t o f the B a n c o r p o
ra tio n an d the N orth w estern N a tion a l
B a n k o f M in n ea p olis , m ade pu blic- the
a p p o in tm e n t o f A le x H ig h la n d , presid en t
o f the S tock Y a rd s N a tion a l B ank, as as
sistant gen eral m a n a ger o f the B a n c o r p o
ration . M r. H ig h la n d w ill becom e „chair
m an o f the b o a rd o f the S tock Y a r d s N a
tiona l B a n k and w ill be m ade a d irector
o f the B a n co rp o ra tio n .
H e w ill be suc
ceeded as presid en t o f the Sou th St. P a u l
bank b y F . A . B irch , n ow v ice presid en t.
T he n ew m em ber o f the B a n c o r p o ra tio n
g r o u p has ca p ita l, su rplu s and u n d ivid ed
. p ro fits o f $545,934, d ep osits o f $4,492,015
an d resou rces o f $5,210,920. B a n k s and
tru st co m p a n ie s affiliated w ith the B a n c o rp o r a tio n have com b in ed d ep osits o f
$234,626,732
and
total
resou rces
of
$270,983,142.
When you advise your customers to have
their live stock proceeds deposited in this
bank located at the heart o£ the world's
greatest live stock market—you are sug
gesting the quickest way to make these
proceeds available for your advice and
credit.
Visit St. Paul
They will appreciate this service and
you w ill profit by the earlier credit.
F r o m 400 to 500 C h ica g o an d E astern
bankers w ere St. P a u l v isitors S ep tem
ber 24th.
T h ey s to p p e d as the guests o f the St.
'P a u l C lea rin g H ou se on th eir w a y to San
F ra n cis co to atten d the annual meeting*
o f the A m e rica n B a n k ers A s socia tion .
The ba n k ers a rrived on fo u r sp ecia l
trains. A f t e r an a u tom obile to u r o f StP a u l th ey w ere taken to M in n ea p olis f o r
luncheon.
T he com m ittee in cha rge o f the en ter
tainm ent in St. P a u l consisted o f R . W.
L in dek e, v ice p resid en t o f the F irs t N a
tion a l B a n k , ch a irm a n ; C. E . J oh n son ,
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Federal Reserve Bank of St. Louis
Time Is Money
—Save It
THE STOCK YARDS NATIONAL BANK
A N D
TH E STOCK Y A R D S TRUST & SAVINGS B A N K
q f
CHICAGO
Northwestern Banker
October 1929
112
Discuss Country Banking
C o u n try b a n k in g in all its ph ases w ill
be the m ain to p ic o f discu ssion at the T riState bankers co n fe re n ce w hich w ill be
held at the N ico lle t H otel, M in n ea p olis,
on N ov em b er 11th. I t w ill be held u nder
the au sp ices o f b a n k ers’ a ssocia tion s fr o m
M inn esota, N orth and Sou th D ak ota .
A m o n g the to p ics to be discussed w ill be
lo a n p o licie s , b o n d s a n d oth er in vest
m ents, increase o f earn ings and elim in a
tion o f loans.
G ro u p an d unit b a n k in g
also w ill be given a p rom in en t p a rt on the
p ro gra m . P resid en ts o f the ba n k ers’ asso
ciation s o f the three states are R o b e rt E.
B a rro n , F a rg o , N orth D a k o ta ; T hom as
O ’ B rien , H u ro n , Sou th D ak ota , and R.
W . P u tn am , R ed W in g , M inn esota.
Organization Completed
O rga n iza tion o f the B a n k Shares c o r
p o ra tio n , the new ba nk h old in g com p a n y
fo r m e d to co n trol the M arqu ette N ation al
B a nk and M a rq u ette T ru st C om p a n y o f
M in n ea p olis and th eir affiliated C h icagoL ake State B a n k , has been com pleted,
w ith R a lp h W . M an uel, p resid en t o f the
M arqu ette in stitu tions, as p resid en t o f
the c o rp o ra tio n .
The co m p a n y w as in
co rp o ra te d u nder the la w s o f Sou th D a
kota.
The officers and m em bers o f the b oa rd
Your Chicago busi
ness at Drovers is
cared for with the
same intelligent care and
genuine personal attention
which you give to your own
business at home. The most
modern facilities plus the
efficiency built on 47 years of
specializing in service to
correspondent banks make
Drovers your logical Chicago
connection.
ro v ers
D
N A T IO N A L B A N K
TRUSTS'SAVINGS BANK
Union Stock Yards - Chicago, 111.
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
October 1929
o f trustees, g o v e r n in g b o d y o f the c o r
p ora tion , are all M arqu ette bank and tru st
co m p a n y officials. The execu tive staff, in
a d d ition to M r. M an uel, the presid en t, in
cludes :
W illia m F . K u n ze, m a y o r o f
M in n ea p olis, w ho w as active as v ice p re s i
dent and trust officer o f the M arqu ette
in stitu tion, as v ice p resid en t ; O la f H .
O din, cash ier o f the M arqu ette N a tion al
B ank, secretary ; M a lv ern H . M anuel,
treasurer, and Jesse V a n V a lk e n b u rg , a t
torn ey.
t
/
Affiliate
The F irst N a tion al B a n k o f M an k ato,
M inn esota, and the M an k ato L o a n and
Trust C om p a n y, w ith com b in ed resources
o f $4,520,000, affiliated rece n tly w ith the
F irst B a n k S tock C o rp o ra tio n , G eorge H .
P rin ce , p resid en t o f the c o rp o ra tio n , an
n ounced.
T he F ir s t N a tion al o f M an k ato, w hich
w as orga n ized in 1868, w as the first n a
tion a l bank established in M an k ato and
the seventh in the state. The trust com
p a n y Avas fo r m e d in 1913, at w hich tim e
both in stitu tion s m oved in to a new b u ild
in g on the site o c cu p ie d b y the ba nk since
its in cep tion .
Scandia Banks Merge
The S can d ia State B a n k and the F a r m
ers S tate B a n k o f S can dia , M inn esota,
Avith com bin ed resou rces o f a p p ro x im a te ly
$750,000, con solid a ted S ep tem b er 23rd, A .
J. V e ig e l, state su perin ten den t o f banks,
an n oun ced. N eg otia tion s f o r the m erger
have been com pleted.
T he con solid a ted ba nk Avill retain the
nam e o f the S can dia State B ank.
The
F a rm ers State B a n k w as o rga n ize d in
1917 and the S can dia in 1907. The m erger
Avill g ive S ca n d ia one o f the largest banks
in W a sh in g to n cou n ty.
1
To Amend Act
A ten tative agreem en t to am end the
n ation a l b a n k in g act to m ake p o ssib le re
en actm en t o f M in n esota ’ s la w s to ta x
n ation a l banks, w hich Avere held in va lid b y
the U n ited States suprem e cou rt in M arch ,
1927, has been reach ed betAveen re p re s e n
ta tives o f the bankers and the A s so cia tio n
o f States on B a n k T a x a tio n , it Avas an
n ou n ced b y S en a tor G e o rg e H . S u lliva n
o f StillAATater.
Llis an n oun cem en t is o f fa r-re a ch in g
im p orta n ce to M in n esota and m ore than
30 oth er states w hich have been unable to
ta x n ationa l banks u n d er th eir old system
as a resu lt o f th e U n ited States su prem e
co u rt d ecision.
M in n esota has n o t r e
en acted n ew laAVs p e n d in g fe d e ra l le g isla
tion am end ing the n ation a l b a n k in g act,
b u t is con tin u in g to receiv e ta xes fr o m
n ationa l ba nkers u n der a “ gen tlem a n ’ s
agreem en t,” betAveen ba n k ers o f the state
and legislators first draAvn in 1927 and
rep ea ted on ce m ore at the last session.
'I
113
à.
execu tive cou n cil o f the State B a n k ers
A ssocia tion .
O th er officers elected w ere C. J. G raber,
A lsen , v ice p r e s id e n t; L. C. W ic k , L a n g
don , s e cre ta ry ; T . L . T illisch , O sn abrock,
treasurer.
C a va lier cou n ty b a n k ers a tten din g the
m eetin g w e r e : H . G. H a lve rso n , M ilt o n ;
H a n s J. D ah l, O sn a b ro ck ; H e n ry B ak er,
L orn a ; L. E . Callahan, M u n ich ; L . C.
W ic k , L a n g d on .
North Dakota
Bank News
Officers North Dakota Bankers
Association
P r e s id e n t .............................................................................R . E . B a rr o n
M in o t
V i c e P r e s id e n t ................................................................... J. E . D avis
G o o d rich
S e c r e t a r y ....................................................................W . O. M a c fa d d e n
F a rg o
To Lend Money
Y
4
The F e d e ra l In term ed ia te C redit B a n k
o f St. P a u l, has com p leted arrangem ents
an d is n o w re a d y to lend m on ey to N orth
D a k o ta fa rm e rs on g ra in stored u n d er the
fa r m w a reh ou sin g act.
T h is w as a n n ou n ced b y F . H . K la w o n ,
p resid en t o f the bank. T he m on ey w ill be
lent b y re d isco u n tin g the p a p e r o f a g r i
cultural cred it c o rp o r a tio n s en titled to do
business w ith th e bank.
A lth o u g h the stora ge certificates are
b e in g issued b y the g ra in stora ge bureau
in N orth D a k ota u n d er the act, M r.
K la w o n said, no a p p lica tio n s f o r red is
co u n tin g o f loa ns on them have com e to
the bank.
M r. K la w o n a1so a n n ou n ced that a tota l
o f $1,000,000 in loa n s to co o p e ra tiv e g ra in
m a rk etin g o rg a n iz a tion s has been a u th or
ized f o r the season thus f a r an d that
m ore a p p lica tio n s are ex p ected . O f the
$4,000,000 au th orized, he said, o n ly about
$250,000 has been b orrow ed .
In New Quarters
O p e n in g f o r business in its new qu arters
in G ra n d F o rk s, N ortli D a k ota , the R ed
R iv e r N a tion a l B a n k and T rust C om p a n y
is n o w loca ted in the old F ir s t N a tion a l
B a n k b u ild in g at the corn er o f T h ird
S treet and D e M ers A v en u e.
W h e n the S ecu rity b u ild in g qu arters
are en tirely v a ca ted and som e im p ro v e
m ents are m ade the sp ace w ill be o ccu
p ie d b y th e N orth w estern T ru st C om p a n y,
w hich is n o w o c c u p y in g qu arters w ith the
F ir s t N a tion a l B a n k at the co rn er o f
D eM ers A v e n u e an d F o u rth Street.
In Good Condition
N orth D a k o ta needs n o sy m p a th y fr o m
an yon e, its b a n k in g co n d itio n s are sound
an d in v ie w o f the strid es m ade tow a rd
co m p le te diversifica tion in fa r m m ethods
the o u tlo o k is d ecid ed ly p rom isin g , a c
c o rd in g to R . R . W o lfe r , p resid en t o f the
N a tion a l B a n k & T rust C om p a n y , o f
Ja m estow n , N o rth D ak ota .
The p r o s p e c t o f a red u ced g ra in c ro p
w ill be offset la rg e ly b y the retu rn s on
d a iry p ro d u cts and p o u ltr y as w ell as
oth er fe a tu re s o f the diversified fa rm in g
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Federal Reserve Bank of St. Louis
Land Moving
W . C. M A C F A D D E N
S ecreta ry
p r o g r a m w hich alrea d y is w ell d ev elop ed
and con d ition s g en era lly p o in t to a g o o d
year.
G ra in and fe e d sh ipm ents are b ein g
held ba ck all o v er the state w ith the p r o s
p e ct o f b etter p rices at fu tu re dates and
the grea test p rob lem fa c in g the fa rm ers
and elevator m en is la ck o f stora ge fa c ili
ties.
Heads County Bankers
M . E . M orten son , o f R olette, N orth
D a k ota , w as elected p resid en t o f the
R olette C ou n ty B a n k ers A s so cia tio n at
the annual m eetin g o f the orga n iz a tion in
R olla . H e succeeds J. H . E n g h , o f St.
Joh n .
O th er officers elected w e r e : M r. E n gh ,
v ice p resid en t, su cceed in g A . O. G raham ,
and O scar H je lt, o f R olla , secretary and
treasurer, reelected. B e tter b a n k p r o te c
tive m easures w as the m ain to p ic o f d is
cussion.
R ep resen ta tives fr o m R olla , R olette and
St. Joh n banks w ere presen t at the m eet
in g. Y . D . L o rd and C. J. L o rd , o f C ando
also attended. T he fo r m e r rep resen ted the
N orth D a k o ta B a n k ers A ssocia tion .
Merged
T h e R ib a State B a n k and the F a rm ers
& M erch a n ts State B ank, both o f P le n ty w ood , N orth D a k ota , have m erged and
w ill con tin u e business u n d er the nam e o f
the F a rm ers & M erch a n ts State B ank, in
its presen t loca tion . The b oa rd s o f d irec
tors o f the tw o banks m erged and the n ew
in stitu tion ’ s b oa rd w ill be m ade u p o f
the com bin ed p erson n el o f the old banks.
T he officers o f the n ew ba n k a r e : A .
R ib a , chairm an o f the b o a r d ; C. B . B u ll,
D residen t; L . V . H a n son , v ice p re s id e n t;
W m . E rick son , execu tive v ice presid en t,
and P a u l K u r tz , cashier.
Elected President
L . E . Callahan, o f M un ich, N orth D a
kota, w as elected p resid en t o f the C avalier
C ou n ty B a n k ers A sso cia tio n at the annual
m eetin g held in L a n g d on .
A n in terestin g ta lk on m atters o f in
terest to th e g ro u p w as given b y V in e D .
L o rd , o f C and o, w ho is a m em ber o f the
A d d itio n a l evidence o f in creased a c tiv
ity in fa r m land p u rch a ses in N orth D a
k ota is p o in te d to b y the G reater N orth
D a k ota A s so cia tio n in co m p a rin g the
recen t statem ents on the co n d itio n s o f
state banks and trust co m p a n ies and n a
tion a l banks in th is state.
T h e associa tion n otes that the state
ba nks and tru st com p a n ie s’ r e p o r t f o r
Ju n e 30th, show s a tota l o f $4,292,981.92
in “ oth er real estate” (fa r m la n ds,) as
com p a red w ith $6,332,838.76 in 1926, a
red u ction o f 32 p e r cent.
N a tion a l ba n k s sh ow a red u ctio n o f 48
p e r cent fr o m $3,399,000 in 1925 to $1,744,000 on Ju n e 30, 1929. T he to ta l re
d u ction in both classes o f banks since the
p ea k has been 37 p e r cent, the to ta l o f
$9,731,838.76 o f fo u r yea rs ago b e in g re
du ced to $6,036,981.92 on Ju n e 30th o f
this year.
Meet in Bisbee
V in e D . L o rd , C and o, N orth D ak ota ,
w as elected p resid en t o f the R o le tte T o w n e r C ou n ty B a n k ers A s so cia tio n at a
m eetin g held recen tly.
O th er officers
nam ed are M . E . M orten son , R olette, v ice
presid en t, an d O scar H je ld t, R o lla , sec
retary-trea su rer.
N o rth D a k ota N ew s
W . E . F U L L E R has been elected
cash ier o f the B a n k o f M o n a n g o , su c
ceed in g A . H . H a m m on d , w ho has re
signed.
A L I C E S W E N S O N has a cce p te d a
p o s itio n as b ook k eep e r and sten og ra p h er
w ith the N orth w estern T ru st C o m p a n y,
G ra n d F ork s, su cceed in g L a u ra N elson.
LENA
G.
AN DERSON
has been
elected assistant cash ier o f th e T a p p e n
State B ank, su cceedin g R u b y B rak k e, w ho
has resigned .
P . M . S E V E R S O N has a ccep ted a p o s i
tion as assistant cash ier o f the F irs t I n
tern ation a l B a n k, L an da.
TH U RSTON K . LEE
p o in te d b ook k eep er and
B a n k o f Stanley.
has been
teller o f
ap
the
F.
H A N N E M A N , fo r m e rly v ice p re si
dent, is n ow cash ier o f the F irs t State
Northwestern Banker
October 1929
114
B ank , K u lm , su cceed in g H . E . G anz, w ho
lias- resigned.
Trust Company Idea Gains
THE
F IR S T
STATE
BANK
of
R o g e rs re -o p e n e d w ith the fo llo w in g offi
cers and d irectors in charge :
C. J.
C h ristian son , presid en t ; Chas. M . P a u l
son , vice presid en t, and A . M . K ila n d ,
cashier.
D ire cto rs : M . 0 . G ra n gaa rd,
Chas. M . P a u lson , Joh n A y g a rn , C. J.
C h ristian son , and T. E . C hristianson.
Trust com p a n ies have gain ed w id e
sp rea d p o p u la r accep ta n ce and have w on
the confidence o f the n ation , said A . V .
M o rton , v ice p resid en t o f the P e n n s y l
v an ia C om p a n y f o r In su ra n ce on L ives
and G ra n tin g A n n u ities, o f P h ila delph ia,
and presid en t o f the T rust C om p a n y D iv i
sion, in ad dressin g the d ivision at the
A m erica n B a n k ers A s so cia tio n C on v en
tion in San F ra n cis co.
T H E O D O R A B . J U L S E T H has been
elected assistant cash ier o f the R olette
S tate B ank.
J. 0 . W A H L has been a p p o in te d teller
f o r the F irs t State B a n k , D enh off.
C H A S . S. B R E A R L E Y has been elected
ca sh ie r o f The F irs t State B a n k o f
M e rrico u rt su cceedin g G lenn F a rra r, w ho
h as resigned.
T h ere are n ow m ore than 3,200 active
trust departm en ts in th is cou n try, M r.
M o rto n said, w hereas o n ly 165 w ere in
op era tion b e fo r e 1900.
In the decade
1900-1910 a total o f 342 trust d epa rtm en ts
w ere o p e n e d ; in 1911-1920 there w ere
665 m ore established, th is b ein g the p e r io d
in w hich the n ation a l banks entered the
trust field ; but the greatest increase has
com e since 1920, 1807 h avin g been estab
lished in less than n ine years.
HE size and compact char
acter o f our organization
make it possible for us to serve
correspondent banks in a care
ful, individual way. Nothing is
delegated to clerks w hich should
have the decision and experi
ence o f an officer.
T
F o u r la rge trust co n feren ce s w ere held
d u rin g the p a st year, M r. M o rto n re
p orted , one fin each 'Section o f the co u n try]
A ch ievem en ts o f -the T ru st C o m p a n y
D iv isio n cited b y M r. M o rto n in clu de tho
p r e p a r a tio n o f a com p lete and weil-j
rou n d ed trust a d vertisin g ca m p a ig n , which
is n ow b ein g used by 524 banks and trudj
com pa n ies, and the d istrib u tion recently]
to all banks an d tru st com p a n ie s w ith a c
tive trust d epa rtm en ts o f a 5 0 -p a g e b o o k l
let em b ra cin g a recom m en ded p la n , w ith
sp ecia l fo rm s , f o r ch eck in g the p e r fo r m
ance o f trust duties.
A n atiom vide in q u iry showTed that there
h ad been a 49 p e r cent increase o f a p
p oin tm en ts o f tru st com p a n ie s o r d e p a rt
m ents as ex ecu tor and trustee f o r 1928,
as com p a red w ith the p r e ce d in g year. The
ca m p a ig n o f the T rust C om p a n y D ivisio n
a gainst dou ble ta xa tion on the secu rities
o f n on -resid en t decedents has n o w re
sulted in 36 states b e in g on re co rd b y law
against such ta xa tion .
M r. M o rto n s a id : “ T here is every in d i
cation that 1929 w ill g o d ow n in the
annals o f c o rp o r a tio n fid u cia ry service as
a re co rd -b re a k in g year, b oth in the volu m e
o f accum ulated w ealth entrusted f o r co n
servation and in the n u m ber o f A m e rica n s
w ho have nam ed trust com p a n ies and tru st
depa rtm en ts o f banks in th eir w ills to
settle their estates. It is estim ated that
m ore than $1,000,000,000 in life insurance
w ill be b rou gh t w ith in the p ro te ctio n o f
tru st agreem en ts d u rin g the y e a r 1930.
A grea ter p r o p o r t io n o f estates w ill be
settled b y ba nks an d trust com p a n ies this
y e a r than ever b e fo re . T h ere can be little
dou bt that the day o f the in d ivid u a l trustee
is w a n in g and that the trust idea is ta k in g
h old m ore firm ly than ever.
“ P erh a p s the m ost sp ecta cu la r phase o f
the trust business lias been the g row th
o f the life in su ran ce trust. I t is estim ated
th at m ore than $2,000,000,000 is n o w p r o
tected b y tru st agreem ents.; The business
insurance trust is the new est fo rm .
“ I n su rv ey in g the developm ent: o f trust
business d u rin g the p a st year, three
trends stan d ou t— the m arked in crease in
trust fu n d s, the ten d en cy to w a rd d iv ersi
fication in tru st investm ent and the g r o w
in g u s e '' o f p erson a l sellin g o f trust
service.”
“Discharged”
THE NORTHERN
TRUST COMPANY
N o r t h w e s t C o r n e r L a S a lle a n d M o n r o e S tr e e ts
C H
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
I C A G O
October 1929
“ Y o u sa y y o u w eren ’t in to x ic a te d !” the
ju d g e sn orted.
“ W e ll, m a yb e y o u can
ex p la in h ow y o u cam e to be ly in g o n the
street w here this officer fo u n d y o u .”
“ I t ’ s this w a y , y o u r h o n o r,” the p r is
on er at the b a r m ade clea r easily. “ Y o u
see, I ’m a b r ic k la y e r ’s h elp er, and the
officer fo u n d me in fr o n t o f the b u ild in g
w here I w ork.
T he b u ild in g i s ” so h igh
that w hen I d r o p p e d a ham m er on S a t
u rd a y m orn in g — -I d id n ’t w o rk Sunday," o f
course-— w ell, on M o n d a y m o rn in g w hen
I cam e to w o rk the" h a m n ie r 'h it m e on
the h ead.”
>
115
The Worst Feature
The to w n w as in a tu rm oil w hen the
1 1 :5 8 stra gg led in and the stranger
d r o p p e d off: at the ra ilro a d station. A ll
a b ou t him , stron g men had b ow ed th eir
heads in g r ie f and w eak m en had given
wra y u tterly.
“ W h y the excitem en t about h e re ? ” the
stra n g er w an ted to k n ow .
“ W e ll,” on e o f the least g loom -s trick en
e x p o u n d e d , “ y o u n g J im B in gh a m has
s k ip p e d out w ith old J ed P e r k in ’s p r e tty
y o u n g w ife and tw en ty th ou san d dollars
o f the ba nk fu n d s — and the w hole tow n
w as e x p e ctin g him to p itch us to v ic
to r y o v e r B a rn esville this a fte rn o o n .”
One Is Enough
S a n d y M a cG re g o r, a ft e r b ein g tw en ty
years in C anada, w en t b a ck to S cotla n d
to visit Bis broth er H u g h . H u g h r e c o g
nized S a n d y at on ce, f o r his fea tu res had
cha nged v e ry little. S a n d y on the oth er
hand, c o u ld n ’t believe that the m an w ho
greeted him w as his broth er. H u g h had
been sm ooth -sh aven, bu t this m a n ’s fa c e
w as covered w ith a fu ll beard. A t len gth
H u g h exh ib ited an old scar on his chin
w hich satisfied his y o u n g e r b roth er o f his
id en tity.
“ W h y on earth did y e g ro w that g rea t
beard, H u g h ? ” excla im ed San dy.
“ W e ll, m o n ,” rep lied H u g h , “ y o u k n ow
y o u to o k the r a z o r w ith y e w hen y e w ent
to C a n a d y.”
A
Deep Thinker
T he m em bers o f a co lo re d chu rch had
decid ed to fe n ce in the cem etery in ord er
to add to its a p p ea ra n ce.
T he w ork o f
ra isin g the n ecessary fu n d s w as assigned
to D e a co n W illia m s, w ho w as m a kin g a
p erso n a l canvass w hen B ro th e r J on es h ove
in to sight.
“ B ro th e r J o n e s,” said the deacon, “ ca n ’ t
y o u -a ll don ate som e small co n trib u tion to
de fu n d f o r fe n c in g in the cullud cem e
te ry ?”
“ I du nn o as I ca n ,” rep lied B roth er
J on es.
“ I d o n ’t see n o use in a fe n ce
arou n d the cem etery. Y o u see, deni w h a t’ s
in th ere ca n ’t get out, and dem w h a t’ s
ou t sh o’ d oa n w an ta get in .”
Famous Fairy Stories
“ I ’ ll p a y y o u n ext w eek .”
“ Y o u ’ll d o u b le y o u r m on ey in a y e a r.”
“ I t ’ll m ake 90 m iles an h ou r.”
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Federal Reserve Bank of St. Louis
“ The tires are as g o o d as n ew .”
“ W h y , d e a r! I n ever look at an y other
w om a n .”
“ Y o u d o n ’t lo o k a d a y o v er tw en ty .”
“ N ot g u ilty .”
“ These eggs are strictly fr e s h .”
“ E v e ry th read is p u re w o o l.”
“ P a ir and w arm er to m o rr o w .”
Concentration
The stin g o f the h orn et is a little th in g,
bu t it has been k n ow n to lift 200 pou n d s
o f m eat tw o fe e t in one second.
T h a t’s
c o n c e n t r a tio n !
A Silver Lining
M rs. Ivnow all to o k a grea t interest in
the d oin g s o f all the n eigh bors. It w as a
g rea t d a y f o r her w hen a new a rriva l came
to the house on the o p p o s ite side o f the
street, and she w atch ed w ith interest as
the fu rn itu re w as rem oved fr o m the van
and ca rried in to the house.
“ W e ll,” said her husband w hen he re
turned fr o m business in the evenin g, “ have
y ou fo u n d out a n y th in g ab ou t the social
sta n d in g o f the new fo lk s across the
street ?”
“ N ot y e t,” w as the re p ly . “ T h ey have
no ca r.”
“ N o?”
“ Y es, and th ey have no p om , no p h o n o
g ra p h , no ra d io, and n ot even a g~and
p ia n o.
I ca n ’t im a gin e w hat th ey have
g o t .”
“ H u m p h !” rem arked fr ie n d husband,
sa rd on ica lly. “ P erh a p s th ey have a bank
a cco u n t.”
W h en A d a m in bliss
A sk ed E v e f o r a kiss,
She p u ck ered her lip s w ith a coo,
W ith look s quite ecstatic.
She answ ered em p ha tic,
“ I d o n ’ t care A d a m , i f I d o .”
The Trials of a Cop
A M in n ea p olis traffic c o p at a bu sy c o r
n er saw an old la d y beck on to him on e
a fte rn o o n . H e held u p a d ozen autos* a
tru ck and tw o ta xis to get to h er side.
“ W h a t is it, la d y ? ” he asked rather im
p a tien tly .
T he old la d y sm iled and pu t her hand
on his arm . “ O fficer,” she said in . a s o ft
v oice, “ I ju s t w an ted to tell y o u th at y o u r
n u m b er is the n u m ber o f m y fa v o r ite
h ym n .”
The Modest Hero
“ So y o u w ere at the battle o f Is-su rT i l l e !” she enthused. “ A n d did y o u r
co m p a n y lose h e a v ily ? ”
“ Y e s ’m, th ey d id ,” assented the b a sh fu l
vet. “ T hat is, th ey did until th ey cau gh t
me w ith them loa d ed dice.”
Why Not Pulverize It?
“ I f I cut a b eefstea k in tw o ,” asked the
teacher, “ then cut the halves in tw o, w hat
do I get ?”
“ Q ua rters,” rep lied the b oy.
“ G ood . A n d then a g a in ? ”
“ E ig h ts.”
“ C orrect. A g a i n ? ”
“ S ixteenths.”
“ E x a ctly . A n d w hat th e n ? ”
“ T h irty secon d s.”
“ A n d on ce m o r e ? ”
“ H a m b u rg e r,” cried the b o y in e x a sp e r
ation.
Heredity
“ C hicken stealing again, R a s tu s ? ” said
the ju d g e .
“ H a v e y o u a n y th in g to say,
an y excu se this tim e ? ”
“ ’D eed, yes, J e d g e ,” re p lie d R astus
“ it a in ’t mail fa u lt, J ed ge, it’s de fa u lt ob
m ah h igh -u p a n cestors.”
“ H o w so ?”
“ W e ll, J ed ge, m ah an cestors dun com e
ov er in de M a y flow er, a n ’ evah since A h
w as b orn A h has an u n co n tro lla b le desire
fo il P ly m o u th R o c k s !”
Profitable Authorship
H e:
Is y o u r b roth er, the
still w ritin g f o r m o n e y ?
S h e : Y es, bu t p a p a n ever
him n ow .
au th or,
answ ers
Heartless Editor
C o n tr ib u to r: “ I h o p e y o u are c a rry in g
out those, ideas I w rote y o u a b o u t ? ”
E d it o r : “ D id y o u m eet th e office h oy
w ith the w aste p a p e r b a s k e t? ”
C o n tr ib u to r: “ Y e s .”
E d it o r : “ W e ll, he w as ca r ry in g out
For the Dog
“ W h a t are y o u ta k in g those cu s p id o rs
hom e f o r ? ”
“ I ’m ta k in g them hom e to m y d o g .”
“ W h a t k in d o f a d o g do y o u have, a n y
w ay?”
“ S p itz .”
Northwestern Banker
October 1929
116
A n ò e x D o ¿A d v e r t is e r s
A
Page
P a g e F ir s t N a tio n a l B a n k , W a t e r l o o ......... .. 96
A. C. A lly n & C o.......................................... 53
F i r s t -W is c o n s in N a tio n a l B a n k ......... 92
A m e r ic a n C o m ’ l & S a v in g s B a n k . . . . 13
F is h e r C o m p a n y ........................................ 41
A m e r ic a n E x p r e s s C o ...............................
6
G
B
B a c k c o c k , R u s h to n & C o ......................... 65
B a lla r d -H a s s e t t C o ..................................... 62
B a n k e r s T r u s t Co., D e s M o in e s ........... 91
Geo. M. B e c h t e l & C o ............................... 67
C a r le to n D. B e h C o .................................... 63
B e lv id e r e H o t e l ............................................104
B r o k a w & C o m p a n y .................................. 57
H. M. B y lle s b y & C o................................... 49
G e n e ra l M o to r s A c c e p t a n c e C o r p .. . . 56
G u ib o r d -W h it e & Co., I n c ...................... 61
N
Page
N a tio n a l B a n k o f th e R e p u b l i c ............ 108
N a tio n a l C ity C o .......................................... 55
N o r th e rn T ru s t C o .......................................114
N o r th w e s t B a n c o r p o r a tio n ...7 7 - 8 7 In c.
N o r th w e s t e r n N a t’ l L ife In s. C o ......... 72
O
H
H a n c h e t t B ond C o ...................................... 66
W . D. H a n n a C o ............................................... 35
H o a g la n d , A llu m & C o ............................. 63
H o m e s t e a d C o ................................................ 104
H o t e l G o v e r n o r C lin t o n ............................ 102
H o te l P ly m o u t h ......................................... 106
V
I
C am p, T h o r n e & C o .................................... 44
C ed ar R a p id s N a tio n a l B a n k .................117
C e n t r a l H a n o v e r B a n k & T ru s t C o .. . 9
C e n tra l N a tio n a l B a n k & T r u s t C o .. . 93
C e n tra l T r u s t Co. o f I l l i n o i s ................ 10
P. W . C h a p m a n & C o ................................. 50
C h a se N a tio n a l B a n k ............................... 37
C ity N a tio n a l B a n k .................................... 97
C o m m e r c ia l N a tio n a l B a n k .................. 68
C o n s o lid a te d N a t io n a l B a n k ................ 98
C o n tin e n ta l 111. C o m p a n y ....................... 7
G. L. O h rstro m & C o .............................. 61
O m ah a N a tio n a l B a n k ............................. 90
E. H. O ttm a n & C o...................................... 61
P
P e o p le s T ru s t & S a v in g s B a n k ............ 100
P h ila . N a tio n a l B a n k ............................... 43
P r ie s te r , Q u a il & C u n dy, I n c .................. 59
I n t e r n a t io n a l H a rv . Co. o f A m e r ic a
8
I o w a B an k D i r e c t o r y ............................... 32
R
I o w a - D e s M o in e s N a tio n a l B a n k . . . .118
R o y a l U n io n L ife In s. C o ........................ 70
I o w a G u a r a n te e M tg . C o r p .................... 64
I o w a L it h o g r a p h in g C o .......................... 42
S
I o w a N a t’ l F ir e Ins. C o ............................. 73
S e c u r it y -F ir s t N a tio n a l B a n k o f L o s
J
A n g e le s ...................................................... 99
J a c k le y -W ie d m a n & C o .......................... 69 S e c u r ity N a tio n a l B a n k ........................... 99
S m ith, B u r r is & C o .....................
54
Iv
S ta n le y S e c u r itie s C o r p ........................... 62
F. N. K n e e la n d & C o .............................. 64 S ta te B a n k o f C h i c a g o .............................
2
K n ig h t B la n c h a r d & C o .......................... 52 S t o b ie -F u r lo n g -M a t t h e w s , I n c ............. 66
IJ
S to c k Y a r d s N a t io n a l B a n k ................... I l l
L
D a w so n , H o w e & D a w e s ......................... 65
R o b t. S. S tra u ss & C o .......................... 60, 62
D e s M o in e s L ife & A n n u i t y .................... 74 G e o r g e L a M o n te & S o n ............................107
D e W o l f & C o m p a n y , I n c ........................... 48 L a m s o n B r o s. & C o ...................................... 69
T
D r o v e r s N a tio n a l B a n k ............................ 112 A. B. L e a c h & C o .......................................... 66
T o d d C o m p a n y ..............................................110
E. R a y m o n d D u tr o & C o ....................... 39 L iv e S to c k N a tio n a l B a n k , O m a h a .. 106
L iv e S to c k N atl. B a n k , S io u x C i t y . . 103
TJ
E
M
E p p le y H o t e ls ............................................. 42
E q u ita b le T ru s t C o................................... 33
W . B. M cM illa n & C o ................................. 69
M cM u rr a y H ill & C o ................................... 51
M a son C ity B r ic k & T ile C o ...................102
M a tth e w s & L e w i s ...................................... 58
M e rc h a n ts N a tio n a l B a n k ....................... 5
M e tc a lf, C o w g ill & C o ............................... 47
M id la n d N a t’l B a n k & T r u s t C o ............109
M in n e s o ta E n v e lo p e C o..............................100
M o r r is o n H o t e l ............................................104
M u eh le, R e a m & M c C la in ........................104
T h o s. D. M u r p h y C o ................................... 38
F
F e d e r a l S u r e ty C o ................................. 11, 75
F in a n c ia l A d v e r t is e r s ’ A s s ’ n ................ 12
F ir s t I o w a S ta te T r u s t & Sav. B a n k 40
F ir s t N a tio n a l B a n k o f C h i c a g o ................ 4
F ir s t N a tio n a l B a n k o f D a v e n p o r t . . 95
F ir s t N a tio n a l B a n k o f O m a h a ........... 96
F ir s t N a tio n a l B a n k , S io u x C i t y ......... 94
U n ite d S ta tes N a tio n a l B a n k .................106
V
V a lle y N a tio n a l B a n k .............................. 100
W
W h it e - P h illip s C o ....................................... 31
W h it e - W e ld & C o ........................................ 46
Z
Z a is e r s ............................................................
TH E N O R T H W E S T E R N B A N K E R AN D T H E T E R R IT O R Y
Published by DePuy Publishing Company
555 Seventh Street, Des Moines
CLIFFORD DEPUY
Publisher
R. W . MOORHEAD
Editor
GERALD A. SNIDER
Associate Publisher
H. H. HAYNES
Associate Editor
M. I. STEVENS
Vice President
FRANK P. SYMS
Vice President
W M . H. MAAS
Vice President
Chicago Office: Wm. H. Maas, 1221 First National Bank Bldg., Phone Central 3591
New York Office: Frank P. Syms, 25 West 45th Street, Phone Bryant 4867
Milwaukee Office: M. I. Stevens, 68 E. Wisconsin Ave., Phone Broadway 4916
Minneapolis Office: Frank S. Lewis, 840 Lumber Exchange, Phone Main 3865
Official Publication of
THE SOUTH DAKOTA BANKERS ASSOCIATION
THE IO W A FARM MORTGAGE ASSOCIATION
THE IO W A INVESTM ENT BANKERS ASSOCIATION
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
October 1929
IT C O V E R S
36
O R G A N IZ E D
MEMBER
FEDERAL RESERVE
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
18 7 7
°^ V E C T V ® ^
F o r an in s t it u t io n t o m a in t a in a s te a d y ,
h e a lt h y g r o w t h o v e r a p e r io d o f y e a rs is e v i
d e n c e o f th e e s s e n tia l n a tu r e o f th e s e r v ic e
r e n d e r e d b y th a t in s t it u t io n .
w e m u s t g et re s u lts .
T o su cceed ,
Banks b e co m e d o m i
n a n t in t h e ir t e r r it o r y o n l y w h e n th e y h a v e
e a r n e d th e c o r d i a l s u p p o r t o f th e ir c lie n t e le .
E s t e e m in g e a c h o p p o r t u n i t y f o r s e r v ic e a
d is t in c t
r e s p o n s ib ilit y ,
it
is
o n ly
n a tu ra l
th at th e C e d a r R a p id s N a tio n a l B a n k s h o u ld
fin d u p o n its h o o k s e a ch y e a r a g e n e r o u s
in c r e a s e in th e n u m b e r o f its c o r r e s p o n d e n t
c u s to m e r s .
Glenn M. Averill, I’ res.
E. M. Scott, Vice Fres.
0. 0. Kuning. V. P. and
Cashier
Van Vechten Shaffer,
Vice Pres.
Geo. F. Miller. V. P.
and Trust Officer
Assistant Cashiers
Peter Bailey
Marvin It. Selden
Bertha M. W olf
Geo-. W. Swab
Maud W . Carpenter
W alter Allison
R. I). Brown
O. A. Kearney
Ohe
Cedar T^apids National Bank
Cedar T^ajsids, Iov»)a
For Greater Strength and Usefulness
capital city, at the state’s
hub and natural business cen
ter, th is n e w ly e n la r g e d an d
strengthened bank now takes a place
am ong the forem ost financial insti
tutions of the mid-west. Form ed by
the m erger of the Iow a N ational
Bank and the D es M oines N ational
Bank, and further affiliated with the
N o rth w e st B a n c o rp o ra tio n , this
e n la rg e d o rg a n iz a tio n g iv e s Iow a
a bank o f com m an din g caliber and
w idespread influence.
I
N IOW A’S
In its added facilities for the prom pt
and accurate handling of all banking
detail, and continued policy of per
sonal helpfulness, it offers to corre
spondents and business interests of
the entire trans-M ississippi basin a
connection that should prove o f de
cided value. Its staff includes all those
with w hom custom ers have enjoyed
friendly relations in the past, who
will, with these greater m eans at their
disposal, be prepared to serve you
ably in all correspondent matters.
Iowa -Des Mqines National
Bank & Tr u s t Company
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
A F F IL IA T E D W ITH
N O RTH W E ST BANCOR3PORATIO N
Combined Resources Over $360,000,000
@FedFRASER