Full text of The Northwestern Banker : October 1940, Forty-Fifth Year, Number 639

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OCTOBER
1940

P. D. H O U S T O N
Chairman, Am erican N ational Bank, N ash ville
President, American Bankers A ssociation

O N T H E B O A R D W A L K W IT H T H E B A N K E R S

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Federal Reserve Bank of St. Louis

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THE ANSWER IS “Y E S ’!
In a su rvey p u b lish ed in last m o n th ’s N orthw estern B an k er, cou n try
b ankers listed th eir reason s fo r ch o o sin g a co rresp on d en t bank as fo llo w s:

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1.
2.
3.
4.

Personal acquaintance and friendship with officers.
Service. (2 8 % )
Location. (2 2 % )
Age and size. (1 8 % )

(3 2 % )

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T h e M erchants N ation al B an k q u alifies o n e h u n d red per cent on each o f
these fa cto rs w ith fr ie n d ly , h elp fu l officers and rou tin e service that is sm o o th
and efficient. It p o ssesses a location accessib le to all Iowa banks and is o n e
o f Iow a’s largest b a n k s, estab lish ed fifty-nine years ago.

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A CEDAR RAPIDS BANK

CEOAR
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M ERCHANTS

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OFFICERS
J ames E. H amilton, Chairman
S. E. Coquillettei, P resident
H. N. B oyson, V ice President
Roy C. F olsom, V ice P resident
Mark J. Myers, V. Pres. & Cashier
George F. Miller, V. Pres. & Tr. Officer
Marvin R. S elden, V ice P resident
F red W. S mith , V ice P resident
J ohn T. H amilton II, V ice President
R. W. Manatt , A sst. Cashier
L. W. B roulik, A sst. Cashier
P eter Bailey, A sst. Cashier
R. D. B rown, A sst. Cashier
0 . A. Kearney , A sst. Cashier
Stanley J. Mohrbacher, A sst. Cashier
E. B. Zbanek , B uilding M anager

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SERVICING ALL IOWA.

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N orthw estern Banker, published m onthly by the D e Puy P u b lish in g Company, Inc., at 527 7th Street, D es M oines, Iowa.
Subscription, 35c per copy, $3.00 per year. Entered as secon d -class m atter at the D es M oines post office. Copyright, 1940.


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Federal Reserve Bank of St. Louis

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N orthw estern B anker October 19W

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< An Iowa institution ever
a l e r t to t h e f i n a n c i a l
n e e d s of I o w a a g r i c u l ­
ture a n d in d u stry .
“Io w a ’s F r ie n d ly B a n k ”

CEDTRflL R(MORAL BARK &TRUST CO
DES
M em ber


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Federal Reserve Bank of St. Louis

M O I N E S ,

F ed era l D ep o sit

I OWA

Insurance

Corporation

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B y establishing- corresp o n d en t
relatio n sh ip s w ith th e C hase, banks
th ro u g h o u t th e c o u n try give th eir ow n
custom ers—-farmers, m an u factu rers, m e rc h an ts— th e a d v an tag es
of a d d itio n a l facilities. In tu rn th e C h ase calls on these banks
for m a n y v a lu a b le services a n d th ro u g h th e m figuratively feels
th e pulse of th e n a tio n ’s business. T h ro u g h th e C hase, corre­
sp o n d en t banks speed th eir collections, secure lo a n a cc o m m o d a ­
tions on short notice, o b ta in u p -to -d a te in fo rm atio n on tra d e
conditions a n d investm ents, ex p ed ite transfers a n d k eep posted
on the cu rren t finan cial stan d in g of A m erican a n d foreign
corporations. T h u s th ey b ro a d e n th eir ow n service to custom ers.

THE CH ASE N ATIO N AL BANK
OF

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M em ber Federal Deposit Insurance Corporation

N orthw estern B anker October I9't0

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Federal Reserve Bank of St. Louis

5

REASON S W HY BANKS PREFER
LA M O N T E S A F E T Y P A P ER S
PR O TEC T IO N
GOOD

DURABILITY

W IL L VALUE

REC O G N ITIO N
PRESTIG E
IN D IV ID U A L IT Y
ACCEPTANCE

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W R IT IN G

SURFACE

P R IN T IN G

SURFACE

D U R A B IL IT Y

U N IF O R M Q UALIT
1----------------------------------------- -...

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♦
The S afety P aper w ith the w a v y lin es h a s both strength and
stam ina. R ag fibres a n d the carefully controlled form ation of
the sh e e t e n a b le c h eck s to retain their crisp n ess an d g o o d looks
right to the en d of the journey. For a custom er's ch eck s are su b ­
jected to a con sid erab le am ount of " w ear an d tear". They are
frequently folded, a n d the a v e r a g e ch eck p a s s e s through no le s s
than 12 h a n d s before it is returned to the custom er w ith his state­
m ent. » » » A nd rem em ber, your custom ers s e e th ose ch eck s a g a in
after th ey h a v e b e e n through the m ill—often k eep them over lon g
periods of tim e b e c a u s e of their v a lu e a s le g a l receip ts.» » »Y es,
it p a y s to sp e c ify La M onte S afety P apers w h en ordering ch eck s.

G E O R G E LA M O N T E & S O N , NUTLEY, N. J.
N orthw estern Banker October 19W

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Federal Reserve Bank of St. Louis

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PROTECTING

INVISIBLE

V A L U E S — NO.

17

EXTENDED

BROADENS
P R O T E C T IO N
p r o v id e d in the f ir e p o lic y
T TER E’S h ow holders o f
fire policies o f T he
H o m e get protection from
loss through other perils as
w ell. For a sligh t additional
p rem iu m

H ome

a g e n ts

have the Extended Cover­
age

Endorsem ent written

on the fire policy to provide
m ore c o m p le te c o v e r a g e .

It covers damage caused by explosion
(except steam boilers and machinery).

Also included is damage inflicted on prem­
ises by motor vehicles running amuck.

OTHER PERILS
INCLUDED
Coverages also provided
by the Endorsement are:

HAIL
RIOT
AIRCRAI
Furious gales or other windstorms cause
damage that is covered by this form.

★

Covers smoke damage due to faulty oper­
ation of stationary heating apparatus.

Extended Coverage Endorsement is vital for full protec­
tion of properties you own or manage, or the property of
a borrower who might suffer loss affecting your loan.
THE HOME agent in your community will be glad to
tell you more about this easily available, low-cost coverage.

T U F

U A A IF

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★

INSURANCE
C O MP A N Y

NEW Y ORK

F I R E — A U T O MO B I L E — MA R I N E

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a nd A L L I E D

LI NES

OF I N S U R A N C E

A re Your

DEPOSITORS

P R O U D of their B A N K ?
P eop le ju dge a bank just a s they ju dge an ind ivid u al—by
its PERSONALITY . . . A nd p erson ality d ep en d s g reatly on
ap p ea ra n ce!
By m odernizing their b an k in g hom es, bankers h a v e found it
m ak es better custom ers— custom ers w h o are proud of their
bank a n d hap pier in their b u sin ess relations.
W ith sev e n ty y ea rs of m odernizing ex p erien ce the Fisher
com p an y is thoroughly eq u ip p ed to h elp you m ake better
custom ers through better fixtures!

Consult Us on H ow to M od ernize Your B ank
Having our representative call and tal\ the matter over
will not place you under any obligation to buy from us.

9i,r F i s h e r C o m p a n y
ESTABLI SH E D
18 7 0

Charles City, Iowa
R A M k ’

N orthw estern B anker October 19W

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Federal Reserve Bank of St. Louis

F I Y T II R F

M F

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n O I !

A

R T F R Ç

•

•

NORTHWESTERN

•

O C T O B E R

19 4 0
NUM BER 639

FORTY-FIFTH Y E A R

Oldest Financial Journal West of the Mississippi River

IN TH IS ISS UE
Editorials
A c ro s s th e D e sk f r o m th e P u b l i s h e r .............................................................................................. It)
C LIFFO RD DE PUy
Publisher

R A L P H W. M O O R H E A D
Associate Publisher

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

Feature A r t i c l e s
F r o n tis p ie c e ------------------------------- --------------------------------------------- —.......-......-................ —
B a n k s C a n M a k e M o n ey F ro m N ic k e l a n d D im e B u s in e s s ..... .G. W. McSweeney
O n -th e B o a rd w a lk w ith th e B a n k e r s ......................................................... Clifford D e P u y
W ith t h e A . B. A . a t A t l a n t i c C ity — P i c t u r e s ...................... .............-......... -............-...........
L e g a l D e p a r t m e n t ............................................................... ..............................................-..................
F in a n c i a l A d v e r tis e r s A n n o u n c e C o n v e n tio n P r o g r a m ...................................~~..............
E ig h t Y e a r s o f A g r i c u lt u r a l C h a tte l L o a n s ............................................ C. C. Jacobsen
“ E n ta i le d ” F a r m M a n a g e m e n t....................................................................... .. .Richard Cole
B u y in g M u n ic ip a l B o n d s f o r B a n k I n v e s t m e n t ........................................ P at G. Morris
N e w s a n d V ie w s ............. ..................... ................................................. ........ .........................................
S o u th D a k o ta P u t s I t s H o u s e I n O r d e r ______ _______ _____________ ---------------------

12
13
14
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16
IT
18
19
20
22
23

Editor

Nebraska Convention
J. STUART D A V IS
Associate Editor

527 Seventh Street,
Des Moines, Iowa
Telephone 4-8163

•

•

F o r t y - t h i r d A n n u a l C o n v e n tio n — T h e P r o g r a m .......................................................—
25
“ R oll o f H o n o r” B a n k s ...... .............................................. .................................................................. 26
N e b r a s k a C o n v e n tio n C o m m itte e .................................................................................. -.............. 28

Bonds and Investments
T h e M o n th ’s M a r k e t M a n e u v e r s ................................................................ James H. Clarke 33
T h e Io w a F ie ld D a y — P i c t u r e s ........................................................................................................ 35
Io w a I n v e s tm e n t B a n k in g News-..........................•-................................................. .......-.............— 36
N e w O fficers f o r W e s te r n M u tu a l F i r e ......................................................................................... 37
N e b r a s k a In v e s tm e n t B a n k in g N e w s ............ .............. ................................................... ............ 39

•

State Banking News
NEW Y O R K O FFICE
Frank P. Syms
Vice President
505 Fifth A ve.

Suite 1202

Telephone MUrray Hill 2-0326

M IN N E A P O L IS O FFICE
J. A . Sarazen
Associate Editor
Telephone Hyland 0575

Nebraska News ................................................................................................................ 41
Omaha Clearings ................................................................................... -........... — 43
Lincoln Locals ................................................................. .-...............................---..... 45
South Dakota News.......................................................................................................... 47
Minnesota News ........................................................................ ~...................... —......... 49
Twin City News..................................... ............... - ................................................ 50
North Dakota News....... ...................................................................................-............. 53
Montana N ew s...............
54
Iowa News ............
55
Seen and Heard at the 1940 Convention......................................... ..................... 58
At the Iowa Convention—Pictures...............................
59
A t the Iowa Convention—Pictures...................... ................................................. 63

Savings and Loan
U n ite d S t a te s S a v in g s a n d L o a n L e a g u e to H o ld C o n v e n tio n ........................................ 77
T h e Io w a C o n v e n tio n P r o g r a m ................................. ...................................................................... 77

The Directors* Room
A F e w S h o r t S to r ie s to M a k e Y ou L a u g h ...... ................................. — ................................ 82

M EM BER
Audit Bureau oi Circulations
Financial Advertisers Association

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Across the Desk
From the Publisher
S s¿ ¿

B ankers and business
Should Bankers
men
should tak e a more
Take an Active Part
active p a rt th an ever
In Government?

in the local and national governm ent. This question was never more
im p o rtan t than now.
R ecently the H a rv ard Business School A lum ni
B ulletin m ade a survey on this question, and in
th eir le tte r to us they asked the question: “ To
w hat ex tent should business men p articip ate in
th eir local and national governm ent?”
Our answ er to them was as fo llo w s:
“ Business men should tak e an active p a rt in
th e ir local and national governm ent.
“ F o r seven years we have certainly had gov­
ernm ent in business, and it is high tim e th a t busi­
ness men took a p a rt in governm ent if we expect
to have our governm ent ru n on a business basis.
“ In the past some good business men have been
afraid to express an opinion about how th eir local
or national governm ent should be ru n because
the p artic u la r in d u stry in which they have been
in terested m ay have been seeking some necessary
legislation or asking for some legitim ate govern­
m ental preference, and they have th o u g h t th a t
fo r this reason they should keep still.
“ A t the present time, in the banking business,
for example, there are 38 separate and distinct
governm ent agencies th a t are more or less com­
peting w ith organized private banking. I am
not saying th a t none of these agencies should
have been organized, b u t I am saying th a t if this
tre n d continues, banking m ay become a com plete­
ly governm ental function, and cease to have the
flexibility w hich it does have under our dual sys­
tem of state and national banks, p riv ately owned,
b u t w ith governm ent supervision.
“ W h at applies to banking also applies to busi­
ness as a whole.
N orthw estern B anker October 19W

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Federal Reserve Bank of St. Louis

“ I f business men continue to sit idly by and
do nothing about local and national legislation
which affects them , th eir stockholders and th eir
custom ers, we will soon have a to talita rian , cen­
tralized governm ent in this country, and, if we
do, p a rt of it will be because business men have
lost the courage, the initiative and the dynam ic
driving force which has m ade this the greatest
nation in the world.
“ L et the business men of A m erica begin w ith
th eir city, county and state governm ents and see
th a t the men who are elected to office know th a t
2 and 2 m akes 4 and not 6, and let them choose
men fo r public office who appreciate th a t busi­
ness, in d u stry and governm ent m ust go h an d in
hand if Am erica is to continue to be the g reat
w ealth-producing nation which it has always
been. ’ ’
B ankers are leaders in th eir com m unities and
m ust tak e an active p a rt if the rig h t men are to
guide the affairs of our towns, cities, counties
and states, to say nothing of our national gov­
ernm ent a t W ashington.

W hy Labor Should
In stead of labor beEncourage Investors !ng antagonistic to capital, it should cooperate
w ith it. In stead of labor discouraging investors
from p u ttin g th eir money in new factories, it
should encourage such investm ents.
In stead of fighting the m an who has some ex­
tra capital, labor should cooperate w ith him and
have him p u t th a t capital stock to w ork in new
enterprises.
One business executive puts it this w a y :
“ Business is the life blood of the nation. W hen
we speak of business, we m ean certain definite
things th a t stand for em ploym ent and the dis­
trib u tio n of money. G overnm ent d ata estim ates

11

th a t an average investm ent of $6,500 is necessary
to provide a job for each m an in m anufacturing.
Therefore, before any p roduct can be m ade or
em ploym ent created, investm ents are necessary.
“ W ho will be the investors? Men and women
like yourselves—thousands of them —millions of
them . If we tak e as an example a facto ry em­
ploying 150 men, the m oney necessary to equip
a facto ry, to house these 150 men is $975,000.
This $975,000 represents the savings of m any peo­
ple. Savings w hich have been p u t in the form
of lan d and buildings and m achinery and tools
and so on, and m uch of which is spent to pay the
labor th a t constructed the facto ry and installed
the m achinery.
“ The average annual pay for a w orker in m an­
u fa ctu rin g is about $1,200 per year. Therefore,
150 men w orking in our facto ry w ould have a
to ta l p ayroll of close to $180,000. This payroll
is larg ely spent in the com m unity in w hich the
facto ry is located, the grocery store, for ren t, or
to buy fu rn itu re or radios or autom obiles or p ro p ­
erties and all the other things th a t m ake life
w o rth liv in g .”
I t m ust also be rem em bered th a t m oney is
tu rn e d over m any tim es in every com m unity, and
the $180,000 could be m ultiplied again and again
as th is m oney finds its w ay to the grocer, the
b u tch er and the baker.
Thus, it is to the advantage of the laboring
m an to see th a t investors are encouraged to p u t
th eir money into m an u factu rin g plants, which,
in tu rn , will m ean more jobs.

Freedom of Speech
rh e U nited S tates was
Not Freedom to
fonnded °“ th! bf ic
p.

,

principle th a t freedom
0f speech and freedom
of the press should be one of our cardinal p rin ­
ciples.
However, there are those in the land who fre ­
qu en tly abuse this privilege.
Today; fo r example, th ere are m any persons
who are using free speech to underm ine our gov­
ernm ent and to destroy the very freedom about
w hich th ey ta lk so glibly.
N ath an Adams, p resident of the F irst N ation­
al B ank of D allas, Texas, in a recent speech, s a id :
“ I t is tim e for people to realize th a t subversive
activities m ust be stopped. Congress should take
action so th a t no com m unist can ru n for P resi­
dent. Aliens who cannot give a good account of
them selves should be shipped out of the country
or placed in concentration camps.
“ Freedom of speech does not m ean th a t we

es roy

have freedom to overthrow or to try to overthrow
the government.”
W e thoroughly agree w ith Mr. Adams, and
when free speech gets to the point w here it is
used to destroy or overthrow our governm ent,
the individuals m aking such speeches should be
p u t out of circulation.

No W orry About
Government Bonds

A s re a t maiw bankers haye been, aslfillg

them selves and others
the question, “ W h at w ould happen to govern­
m ent bonds if we should be so u n fo rtu n a te as to
get into the present w a r? ”
In discussing this question before the A rkansas
B ankers U niversity Conference recently, F alk n er
C. Boarch, vice president of the N ational B ank of
Tulsa, Oklahom a, s a id :
“ Should we be draw n into this w ar, I th in k
you need have no concern over your Covernm ents.
If necessary— and I doubt th a t it will be necessary
except for possibly a tem porary period— Govern­
m ent bond prices will be pegged. The financial
resources of the country will be m obilized and
the in terest cost of financing the w a r reduced to
a minimum. I am therefore not concerned over
w hat will happen to G overnm ent bond prices
should we become a declared b ellig ere n t.”
F irs t of all, we hope th a t no such contingency
will arise w here we will be draw n into this p res­
ent w ar, and secondly, if we are, we hope th a t
Mr. B ro a c h ’s analysis of the G overnm ent bond
situation is correct, and we believe it will be.

No New Credit
I t is certainly interestAgencies Needed ing and gratifying t0 flnd

one b a n k e rs’ association,
and th a t in the D em ocratic South, w hich is op­
posed to the creation of any more governm ental
financial agencies to help tak e care of needed
m oney to held finance our preparedness program .
A resolution to this effect was passed recently
by the F lo rid a B ankers Association, w hich said
in p a r t:
“ BE IT RESOLVED, th a t the F lo rid a B an k ­
ers Association advise the N ational A dvisory
Commission of the w illingness of the members,
of th eir desire to be of all possible assistance in
financing the defense program of the g o v ern m en t;
th a t it will through F a c t F in d in g facilities keep
advised as to F lo rid a ’s present and an ticip ated
N ational Defense financial requirem ents; and th a t
we believe C hartered B anking, th ro u g h its present
stru ctu re is adequate to am ply finance the N a­
tional Defense needs without the creation of addi­

tional credit agencies.”
N orthw estern Banker October 1940


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Federal Reserve Bank of St. Louis

13

Banks Can Make M oney
From

Nickel and Dime Bus¡ ness

itself consists
sim ply of hav in g som ething to
sell—pricing it rig h t—and th e n
in a th o u san d different w ays asking
people to buy it. W hen we get to th a t
po in t we are in th e “zone of actio n ”.
H ow ever, before we can get sta rte d on
an y definite selling program , we have
to pass th ro u g h th e “zone of accept­
ance” and it is princip ally in connec­
tio n w ith th a t phase of th e subject
th a t I w ill deal.
Now, w hy should b an k m erch an d is­
ing be a lively topic rig h t a t th is tim e?
It certain ly isn ’t new because b anks
have alw ays m erchandised and, I
m ig h t add, in a v ery creditable m a n ­
ner. P robably it is p a rtic u la rly in te r­
esting now because th e te rm has ta k e n
on a new m eaning and if I h ad to de­
fine it in one sentence, I w ould classify
it as a change from w holesale to re ­
tail m erch an d isin g —in o th er w ords,
reach in g th e m ass m arket; engaging in
re ta il tran sactio n s; nickel and dim e
business as com pared to big business.
T his seem s to be th e basic change
w hich has been forced upon us by
econom ic necessity.
W holesale b an k in g fo rm erly hired
m oney a t 3 p er cent and re n te d it out
a t 6 p er cent—a m ark-up of 100 p er
cent. Today, m oney can be h ired at
1 p er cent and re n te d to th e w holesale
m a rk e t a t 2 p er cent, w hich still p ro ­
vides a gross m ark-up of 100 p er cent,
but, in th e sam e volum e, re p re se n ts a
red u ctio n in dollar reven u e of 66 2/3
p er cent. It w ould appear, th erefore,
th a t th e only recourse for m ost b anks
is to go m ore and m ore into retail
banking w h ere th e re exists a g reater
gross sp read b etw een cost and selling
price.
T his sam e ad ju stm e n t has been
forced upon in d u stria l organizations
tim es w ith o u t n u m b er and I th in k th e
records w ould show th a t they, like
banking, resisted th e change u n til
th ere w as no choice left to them . H ow ­
ever, th e y have m et such changes and
th e y are m eeting them , so, to th a t ex­
te n t b an k in g can p erh ap s profit by th e
experience record of in d u stry . F o r
som e reason, we all re sist change. W e
don’t like it because it b reak s up our
routine, it m akes m ore w ork, m ore
study, and it d istu rb s us. J u s t th e
e r c h a n d is in g

M

W h at changes have we in banking?
We have a change from a seller’s m a r­
General Sales M anage r
k et to a b u y e r’s m arket. T h at took
De Luxe Check Printer s, Inc.
place 12 or 14 y ears ago. In d u stry
Chicago
faced th a t sam e change in 1921. F or
a couple of y ears p rio r to th a t tim e
we had to beg m an u factu rers for som e­
sam e, change is th e g reatest single th in g to sell and th e buyers prom ptly
co n trib u tin g factor in keeping us took it aw ay from us as soon as we
aw ake and we w ould be a p re tty dull had it in stock. B anks had the sam e
situation. T hey appealed to th e m ass
people if it d idn’t exist.
T here is a g reat sim ilarity betw een m ark et and said: “Open an account
for a dollar. We w ill give you a cal­
endar, a fountain pen, an um brella.”
W hy? Because they, too, had a ready,
eager, buying m ark et th a t w as w illing
to tak e th e m oney aw ay as fast as it
could be b ro u g h t in.
W hen in d u stry passed from the sell­
e r’s m a rk e t th ey had a heck of a tim e
and th e salesm an w ho b u rn ed things
up in 1919 had to scram ble for even
th e sm allest order in 1920. You fel­
lows b u rn ed things up in 1928 and
1929. Now, a $200 loan is considered
good business. We used to th ro w our
hands up in h o rro r at th e th o u g h t of
financing autom obiles. Today we love
it. W e look upon it as being good
business. Sure it is. It alw ays has
been, b u t it takes a pronounced change
in th in k in g to m ake us realize that.
W hen we get involved in sm all tra n s ­
actions of th is character, how ever, we
have to m ake changes in our setup.
W e have to have larg er sales staffs in
G. w. M cS W E E N E Y
order to m ake th e contacts. W hereas
in th e old days one loaning officer
the changes th a t have been taking m ight be able to place $100,000 before
place in b anking and those w hich have lunch, today we m ight conceivably
tak en place in industry. F o r exam ­ have to m ake five h u n d red $200 loans
ple, in th e old days our g randm others in order to p u t th is am ount of m oney
bought flour by th e b arrel because of to w ork. T h at m akes it doubly neces­
certain sound economic reasons. They sary to have m ore sales-conscious peo­
had large kitchens, th ey did a lot of ple in our banks.
baking, and it w as an h o u r’s ride to
W e have a pronounced change from
th e store. Today, we have sm all k itch ­ ren d erin g service free to charging for
ens, we buy our bread already sliced,
service. E xten d in g over a period of
and th e store is b u t a m inute away.
fifteen years th e service charge has
The flour m an u factu rers w ho took the
come th ro u g h an evolution and still
a ttitu d e th a t th ey w ere going to con­
isn ’t developed to th e point w here it
tin u e selling it by the b arred probably
should be. A nd we have still an o th er
are not in business today. Those, how ­ change com ing up, nam ely, a change
ever, w ho prom ptly recognized the from low to high acquisition costs or,
need for a sm aller package and m et
in o ther w ords, increased sales ex­
the changed conditions by packing
pense.
flour in five-pound sacks benefitted
(T u rn to page 28, please)
thereby.

By G . W . McSweeney

N orthw estern Banker October 19^0

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

14

O n the

Boardwalk
W ith the Bankers

T

HE 66th annual con ven tion of the
A m erican
B an kers
A ssociation

w here only 2,750 atten d ed w as held
at A tlantic City, th e Coney Island de
luxe or Miami Beach w ith o u t th e
yachts. A tlantic City w h ere you buy
gifts and gadgets from th e w orld over
—w here th e S teel P ier is m ostly m ade
of wood—w h ere colored boys pu sh you
in R ollin g Chairs for 75 cents an h o u r
and if you don’t give th em th e oth er
25 cents for a tip w ill ask you for it—
w here you can buy M am m y’s waffles
and dough n u ts—w here th e b ath in g
beaches are filled w ith th in girls, tall
girls, fat m am m as and sh o rt ones and
w here m en w ith h airy chests need a
shave—w here A uction sales and B ingo
gam es vie for a tten tio n —w here H ack ­
n ey ’s Sea Food E m porium sells lob­
sters to su ck ers —w h ere sand a rtists
m ake y o u r p ictu re w hile you w ait and
pay or p ray —w here Salt W ater Taffy
is th e leading confection—-where
everyone w ears dark g lasses b u t does
n ot c arry th e tin cup and lead pencils
—w h ere th e T axis have no m eters b u t
you get soaked ju s t th e sam e or even
m ore—th is is A tlantic City w h ere you
are n ever bored on the Boardw alk.

By Clifford De Puy
Publisher
The Northwestern Banker

P ercy J. E bbott, Vice P resident,
R oland Irvin e, Vice P resident, and
R ichard H unter, Vice P resident, led

th e “CHASE” contingent to th e A.B.A.
Dr. Glenn F rank w ho w as killed re ­
cently in an autom obile accident w as
th e brother-in-law of Tom Sm ith P resi­
den t of th e B oatm en’s N ational B ank
of St. Louis.
F ran k W arner, S ecretary of the
Iow a B ankers Association, H oyt R.
Y oung, C ashier of th e A m erican N a­
tional B ank of A rlington, Iowa, and
P re sid en t of th e S tate A ssociation
dined a t H ackneys one n ig h t w hich is
th e w o rld ’s largest Sea Food R estau ­
ra n t and seats 3,000 people. T h eir slo­
gans are “E a t w here th ey are cau g h t”
and “F ish in g out th e w indow .” W hen
you eat Clams th ey p u t a bib around
y o u r neck so you w on’t look like an

M.F. (M ussy Feeder) w hen you get
through.
G. W . M cSw eeney, Sales M anager of
the De Luxe Check P rin ters, Inc., of
Chicago w as one of the sta r golfers
at th e convention as he shot a 79 at
Seaview Golf Club.
F red A. Cuscaden, Solom on B yron
Sm ith, Charles M. N elson, Edw ard
Byron Sm ith, L aw rence A. K em pf, and
A lan R. Kidd again fried the bacon,

scram bled th e eggs, and fu rn ish ed the
orange juice and coffee for th eir
friends a t a b reak fast served in the
M andarin Room, a t th e H otel Traym ore on Tuesday m orning. As usual
it w as a v ery delightful occasion.
W illiam F. Cuthbert, C om m issioner
of Public Safety and his associates
gave a v ery in terestin g Life Saving
D rill and E x hibition on th e beach d u r­
ing th e convention.

Most everyone took th e boat trip
from th e Steel P ier in th e Sail Boat.
The w eath er w as especially fine dur(T u rn to page 68, please)

W I T H T H E A . B. A . A T A T L A N T I C C I T Y —
B e a d in g fro m le f t to rig h t, 1— W illiam C. Rem pfer, cash ier,
F i r s t N a tio n a l B a n k , P a rk s to n , S o u th D a k o ta (30 y e a rs w ith
th is b a n k ), a n d Mrs. Eem pfer. 2— Mrs. H aynes (N a n cy ) MeF adden o f A tla n ta , G eorgia, a n d Mrs. N. J. W aller of W a s h in g ­
to n , D. C. 3— G-eorge LeM onte, p re sid e n t, a n d J. T. Anderson,
a d v e rtis in g m a n a g e r, G eorge L a M o n te & Son, N u tle y , N ew J e r ­
sey. 4— R. L. Banks, v ice p re s id e n t a n d c ash ie r, P e o p les B a n k ,
A n tig o , W isco n sin ; Mrs. Stuart Frazier, S e a ttle , W a s h in g to n ;
a n d S. A. P hillips, vice p re sid e n t, F i r s t N a tio n a l B a n k , L o u is­
v ille, K e n tu c k y , a n d n e w ly -elec ted c h a irm a n o f th e N a tio n a l
b a n k d iv isio n . 5— H. N. Thomson, vice p re sid e n t, F a rm e rs an d
M e rc h a n ts S ta te B a n k , P re sh o , S outh D a k o ta ; a n d Carl L.
F redricksen, p re sid e n t, L iv e S to c k N a tio n a l B a n k , Sioux C ity,
Io w a. 6— W. L. H em ingw ay, p re sid e n t, M e rc a n tile Com m erce
B a n k & T ru s t C om pany, S t. L ouis, e le cte d second vice p re s id e n t
o f th e A. B. A .; a n d W. F. A u gustin e, vice p re s id e n t, T he N a ­
tio n a l S h a w m u t B a n k , B oston. 7— R oland H insch, John C. L ar­
sen, Clarke M orton, G. W. M cSw eeney, A rthur G. P ain e, an d
George H. L ittel, a ll of th e D eL uxe C heck P rin te rs , In c., C hi­
cago. 8— O. H ow ard W olfe, vice p re s id e n t a n d c ash ie r, P h i l a ­
d e lp h ia N a tio n a l B a n k ; a n d Charles P. B linn, Jr., v ice p re sid e n t,
P h ila d e lp h ia N a tio n a l B a n k . 9— John T. H am ilton, 2d, a s s is ta n t
cash ie r, M e rc h a n ts N a tio n a l B a n k , C ed ar B a p id s, Io w a ; C. T.
Chandler, Jr., a s s is ta n t v ice p re sid e n t, N a tio n a l B a n k of W a s h ­
in g to n , T ac o m a ; John G. M cCoy, C ity B a n k & T ru s t C om pany,
C olum bus, O hio; a n d Laurance Armour, c h a irm a n of th e b o a rd ,

N orthw estern B anker October 19M

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

L a S alle N a tio n a l B a n k , C hicago. 10— W erner A. Ericson,
a d \ e rtis in g m a n a g e r, a n d Charles G. Slauson, vice p re sid e n t,
A llen W ales A d d in g M ach in e C o rp o ra tio n , N ew Y o rk C ity.
11— R. P alm er M cElroy, vice p re s id e n t, F i r s t N a tio n a l B a n k ,
S t. L o u is; O. B. W allace, second v ice p re s id e n t, C o n tin e n ta l
Illin o is N a tio n a l B a n k & T ru s t C om pany, C hicago; a n d W alter
L. Rust, p re sid e n t, F e d e ra l L a n d B a n k of S t. L ouis. 12— M elvin
Rouff, p a s t p re sid e n t, N a tio n a l B a n k d iv isio n , A. B. A., H o u sto n ,
T e x a s; Arch W. Anderson, p re sid e n t, C a lifo rn ia B a n k , Los
A n g e les; and E dgar E. M ountjoy, d e p u ty m an a g er, A. B. A.,
N ew Y ork. 13— George J. Schaller, p re sid e n t, F e d e ra l R eserve
B a n k of C hicago, a n d Mrs. Schaller. 14— Roland C. Irvine, vice
p re sid e n t, T he C hase N a tio n a l B a n k , N ew Y o rk ; R. Frank New hall, v ice p re s id e n t a n d cash ie r, F i r s t N a tio n a l B a n k , C hicago;
a n d I. L. Porter, vice p re sid e n t, F i r s t N a tio n a l B a n k , Chicago.
15— K . O. Sattre, p re sid e n t, M in n e so ta B a n k e rs A sso ciatio n ,
B lue E a rth , a n d W illiam Duncan, Jr., s e c re ta ry , M in n e so ta
B a n k e rs A sso c ia tio n , M in n eap o lis. 16— Mrs. C. B. Brombach,
a n d C. B. Brombach, vice p re sid e n t, F i r s t N a tio n a l B a n k & T ru st
C om pany, M in n eap o lis. 17— W infield W. Scott, vice p re sid e n t,
V alley S a v in g s B a n k , D es M oines, a n d Mrs. W infield Scott. 18
-—E ugene L. Voss, a s s is ta n t v ice p re sid e n t, C o n tin e n ta l B a n k &
T ru s t C om pany, N ew Y o rk ; F rank W arner, se c re ta ry , Iow a
B a n k e rs A sso c ia tio n , D es M oin es; a n d H o y t R. Young, p re sid e n t,
Io w a B a n k e rs A s so c ia tio n , A rlin g to n , Io w a.

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

itIPolicy

Delay In Issuing

y

No Cause for Non-Payment of Claim
M inton, a

North

D akota

banker,

m ade application for certain life in s u r­
ance th e re on Ju n e 1. T he agent took
the application and forw arded it to his
hom e office. T he hom e office delayed
in acting on th e application u n til Ju ly
2, on w hich date it w as disapproved.
M inton had, in th e m eantim e, been
killed, on Ju n e 26, in an autom obile
accident. Could the proposed bene­
ficiary recover dam ages in such cir­
cum stances for the in s u re r’s delay in
accepting or rejectin g th e application?
Yes. A n in surance com pany is u n ­
der legal duty to act p rom ptly on an
application for insurance, and to n otify
the applicant of its acceptance or re­
jection. T his the in surance com pany
did not do in th is case and the pro­
posed beneficiary is en titled to recover
from the in surer because of n egligen t
delay in actin g on the application.
An Iowa banker w as th e a d m in istra ­
to r of th e estate of a farm er w ho had
been a long tim e friend and custom er.
The farm er had died leaving no will.
Previous to his d eath th e farm er had
tak en into his hom e a child of one of
his deceased relativ es and h ad treated
the child as his own although he had
not adopted him u n d e r th e Iow a adop­
tion sta tu te s in effect at th e tim e
w hich m an d ato rily required, am ong
various things, th e recording of the
articles of adoption. W as th is child
en titled to share in the fa rm e r’s estate?
No. The rights of in heritan ce and
adoption are p urely statu tory, and a
child does not becom e the h eir of the
ad opting parent u n less there is a com ­
pliance w ith the m andatory p rovisions
of the adopting statu tes. Inasm uch as
one of such p rovisions ran to the effect
that the articles of adoption m ust be
recorded and th is w as not com plied
Avith, the child w as not entitled to a
share of the estate.

died
w ith o u t a will. N uttall w as appointed
a d m in istra to r of his estate. A dispute
arose betw een him and th e heirs in
w hich th ey contended he im properly
used, distributed, and handled th e es­
ta te funds. T his dispute resu lted in a
law su it in w hich it w as finally held
th a t the a d m in istra to r had acted p ro p ­
erly. In finally settlin g his accounts
Jordan, a

N ebraska

banker,

N orthw estern B anker October Í9 M

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

These and Other Timely Legal
Questions Are Answered
By the
LEGAL DEPARTMENT
th e a d m in istrato r sought to recover
as a charge against the estate the
a tto rn e y ’s fees in cu rred by him in de­
fending the suit. Should such recovery
be perm itted?
No. In N ebraska ail adm inistrator
is not entitled to charge again st the
estate atto rn ey ’s fees incurred by him
in a con test Avith the h eirs w hich is
concerned Avith alleged m ism anage­
m ent of the funds of the estate. Such
charges are not incurred for the b en e­
fit of the estate but for the ad m in is­
trator personally. B ecau se of th is it
is his resp on sib ility to pay them rather
than the resp on sib ility of the estate.
P ainter, a South Dakota banker, died
leaving a farm to his seven children.
The farm w as encum bered by a m o rt­
gage, and w as operated by the eldest
son to w hom the o ther children looked
to m anage and deal w ith it. Such son
bought up the m ortgage and foreclosed
it. At the foreclosure sale he bought
in the pro p erty for approxim ately oneth ird its value. P revious to the fore­
closure, how ever, he had assured his
b ro th e rs and sisters th a t the m ortgage
w uold be extended and th a t they did
not need to concern them selves w ith
it. Such assurances w ere relied upon
u n til approxim ately tw o y ears after
the foreclosure sale, and afte r th e oney ear redem ption period had expired,
w hen the tru e facts w ere discovered.
The b ro th ers and sisters th e re a fter
pro m ptly sued to set the sale aside.
Could they do this?
Yes. W here brothers and sisters,
after th eir fath er’s death, looked to
th eir old est b rother to m anage a farm
Avhieh th ey held in com m on as heirs
of th eir father, such brother AAras re­
quired to exh ib it to them a more than
ordinary degree of fair d ealin g and
good faith. T his he did not do in the
circum stances ou tlined and the fore­
closure sale could therefore be set
aside by them .

The son of a M innesota banker was
killed in a h u n tin g accident in th at
state some h u n d red m iles from his
home. The coroner of the county in
w hich the accident occurred took
charge of th e body and, w ith o u t con­
sulting or attem p tin g to consult the
parents, tu rn e d it over to a local u n ­
d ertak er for em balm ing. W hen the
p aren ts learned w h at had happened,
they sought to claim th e body b u t it
w as w ithheld from them by th e coro­
n er and the u n d e rta k e r for a tim e un til
the u n d e rta k e r’s charges w ere paid.
W ere the coroner and u n d ertak er li­
able to the son’s p aren ts for dam ages
because of such action?
Yes. The em balm ing of a dead body
w ithout au th ority from the deceased’s
parents and Avithholding of it from
them , although only tem porarily, con­
stitu tes an actionable Avrong en titlin g
the parents to recover su bstan tial dam ­
ages for m ental suffering from a coro­
ner and undertaker g u ilty of such ac­
tions.
The general rule applicable to in ­
fa n ts’ contracts is th a t the in fan t m ay
avoid liability thereon. Is the same
tru e w ith reference to a tort, th a t is,
a w rong done by him, w hich is not re­
lated to any co n tract to w hich he m ay
p u rp o rt to be a party?
No. A lthou gh th e gen eral ru le ap­
p lica b le to in fa n ts’ contracts is th a t
th e in fan t m ay avoid lia b ility thereon,
th e gen eral ru le in the laAV o f torts is
th a t h e is ab solu tely liab le and th at
in fan cy, b e in g in Iuav a sh ie ld and not
a sw ord, cannot be pleaded to avoid
liab ility fo r a tort.
B u ck ley bought an an n u ity from an
insurance com pany, and as an incident
thereto, w as show n certain figures re ­
garding w h at he m ight receive as divi­
dends by th e insurance com pany’s
agent at the tim e of the sale. These
figures w ere stated to be based upon
past earnings and w ere used as illus­
trations. It developed th a t the in su r­
ance com pany did not pay Buckley the
dividends he expected and he sought
to rescind th e an n u ity contract and
recover the m oney paid by him to the
insurance com pany. Could he do so in
such circum stances?
(T u rn to page 36, please)

17

financial Advertisers

A n nounce

1940 Convention Program
H E p ro g ram for th e four-day 25th
A nnual C onvention of th e Financ i a 1 A dvertisers A ssociation,
w hich opens at H ot Springs, V irginia,
on M onday, October 28th, w ill provide
a com posite discussion of practical
public relatio n s problem s, according
to S tephen H. Fifield, p resid en t of th e
association. Mr. Fifield is vice p resi­
den t of the B a rn e tt N ational B ank of
Jacksonville, F lorida. The p rogram s
for th e v arious m eetings include a
three-day school of advertising, m o rn ­
ing sessions p resen tin g sp eakers from
th e b an k in g field and from ad v ertisin g
and business, and ro u n d table discus­
sions on specific ad v ertisin g and b u si­
ness prom otion problem s.
P ro g ram s for th e en tire convention
follow:

T

10:30 A. M. to 12:15 P. M.
New B usiness D evelopm ent — Vice
P resid en t R obert J. Izant, presiding.
People, th e Base of All E ffort—L aw ­
rence H. Selz, publicity counsel, Chi­
cago, Illinois.
New B usiness D evelopm ent — Sam ­
uel N. P ickard, president, N ational
M anufacturers Bank, N eenah, W iscon­
sin.
B usiness Begins at H om e—B enja­
m in H. Young, vice president, N ational
B ank of D etroit, D etroit, Michigan.
2:00 P. M. to 3:00 P. M.
G eneral Forum , directed by

the

8:00 P. M.
B irds

and

R egistration.

T uesday, October 29, 1940

9:00 A. M. to 10:00 A. M.
A dvertising School—H arfo rd Powel,
In stitu te of Public R elations, New
Y ork City.

3:00 P. M. to 4:30 P. M.
D epartm ental Sessions—1. Com m er­
cial. 2. T rust. 3. Savings. 4. In v est­
m ent. 5. C onsum er Credit.

A dvertising School—H arford Powel.

9:00 A. M. to 10:00 A. M.

3:15 P. M. to 4:30 P. M.
D ep artm en tal Sessions—1. Com m er­
cial. 2. T ru st. 3. Savings. 4. In v e st­
m ent. 5. C onsum er Credit.

2:00 P. M. to 3:00 P. M.
G eneral Forum , directed by the Con­
sum er C redit Section—I. I. Sperling,
chairm an.

9:00 A. M. to 10:00 A. M.

M onday, October 28, 1940

2:00 P. M. to 3:00 P. M.
G eneral F o ru m directed by th e Com­
m ercial D evelopm ent Section—H arold
C othrell, chairm an; R obert L indquist,
program chairm an.

and

Thursday, October 31, 1940

Get A cquainted

10:30 A. M. to 12:15 P. M.
K eynoting th e C onvention—P re si­
d en t S tephen H. Fifield, presiding.
P re sid e n t’s A ddress.
The E xecu tiv e P o in t of View in P u b ­
lic R elations—R obert M. H anes, p re si­
dent, W achovia B ank & T ru st Com­
pany, W in sto n Salem, N o rth Carolina.
T he P ublic R elations M an’s P o in t of
View—J. Lew ell L afferty, vice p re si­
dent, F o rt W o rth N ational Bank, F o rt
W orth, Texas.

12:30 P. M. to 2:00 P. M.
L uncheon, business m eeting,
election of officers.

6:30 P. M. to 8:00 P. M.
Tw enty-fifth A nnual B anquet.

Sunday, October 27, 1i)40

E a rly
P arty .

E xperience Looks at A dvertising—
C hester C. P arlin, Philadelphia, P en n ­
sylvania.
W h at W e Aim To Do and How W e
Do It—P rice Gilbert, ad vertising m an ­
ager, Coca Cola Company, A tlanta,
Georgia.

S T E P H E N H. F IF IE L D

T ru st D epartm ent Section—E. H. Nippert, chairm an.
3:15 P. M. to 4:30 P. M.
D epartm ental Sessions—1. Com m er­
cial. 2. T rust. 3. Savings. 4. In v est­
m ent. 5. C onsum er Credit.
W ednesday, October 30, 1940

9:00 A. M. to 10:00 A. M.
A dvertising School—H arford Powel.
10:30 A. M. to 12:15 P. M.
M arketing and M erchandising—Vice
P resid en t V ictor Cullen, presiding.
Selling the N ation—Donald A. Davis,
president, G eneral Mills, M inneapolis,
M innesota.

10:30 A. M. to 12:15 P. M.
A dvertising—Vice P resid en t L. E.
T ow nsend, presiding.
M odern Technique of F in ancial Ad­
v ertisin g —E. J. A lexander, vice p resi­
dent, F u lle r & Sm ith & Ross, Inc.,
Cleveland, Ohio.
Telling and Selling by Mail—P e rry
I. P rentice, vice president, Time, Inc.,
New Y ork City.
The A gency W orks w ith th e B ank—
R obert E. Grove, vice president, Ketchum MacLeod & Grove, P ittsburgh,
P ennsylvania.
The chairm en for the dep artm en tal
sessions are:
T ru st—Jo h n M. Zuber, vice p resi­
dent and tru s t officer, Ohio Citizens
T ru st Company, Toledo, Ohio.
Com m ercial—R obert Lindquist, pub­
lic relations director, A m erican N a­
tional B ank & T ru st Company, Chi­
cago, Illinois.
Savings — Jo h n Bodfish, secretary,
F irs t Federal Savings & Loan Associa­
tion, Chicago, Illinois.
In v estm en t — Jam es R ascovar II,
vice president, A lbert F rank-G uenther
Law, Inc., New York.
C onsum er Credit—I. I. Sperling, as­
sistan t vice president, Cleveland T ru st
Company, Cleveland, Ohio.
N orthw estern B anker October 19k0


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

18

W hat Has Happened in Eight Years
of Agricultural
N T H E m aking an d a d m in istratio n of
a g ric u ltu ra l ch attel loans, th e lender
definitely accepts resp onsibilities to
th re e d istin ct classes or groups of in ­
dividuals—first to his ow n in stitu tio n ,
second to th e borrow er, th ird to th e
com m unity in w hich he operates.
The len d er’s responsibilities to his
ow n in stitu tio n im pose upon him th e
d uty th a t th e borrow er be a good m oral
risk; th a t th e funds req u ested appear
to be useful and profitable to th e appli­
cant; th a t th e loan be collectible and
reasonably liquid; th a t th e ra te of in ­
te re st be fair, and th a t th e term s of the
loan be th o ro u g h ly understo o d and
give prom ise of fulfillm ent.
H is responsibilities to th e borrow er
req u ire th a t a plan or pro g ram of o r­
derly liquidation be w orked out u n d er
w hich th e loan can be ev en tu ally re ­
tire d from proceeds of sales of su rp lu s
p ro p e rty or from norm al earnings.
D uring the te rm of th e loan and u n d er
its term s th e b o rro w er should be en ­
abled to m ain tain his fam ily on a re a ­
sonably com fortable scale, his o rd in ary
operatin g expenses should be m et
prom ptly, and a t th e tim e th e obliga­
tion has been re tire d th e borro w er
should be in a position to continue his
farm in g operations. T his does n o t nec­
essarily m ean th a t so-called “b a rn y a rd
loan s” should be rep aid w ith in a pe­
riod of one year. On th e contrary , re ­
new als m ay be advisable and d esir­
able. In th e event it is d eterm ined
th a t a renew al m ay be in order, a
reconcilem ent of th e secu rity should
th en be made. It can th u s be d e te r­
m ined w h e th e r a p ro p er account of
proceeds of sale of secu rity has been
ren d ered by th e borrow er, w h e th e r u n ­
w ise ex p en d itu res have been made,
and w h e th e r th e m ost im proved m e th ­
ods of farm in g have been em ployed.
An active in te re st in th e b o rro w e r’s
problem s can be evidenced, and in th is
m an n er en couragem ent can be given.
L ast, b u t not least, th e lender has a
respo n sib ility to his com m unity in th a t
he should help m ake his b o rro w er a
good citizen and a cred it to th e com ­
m unity. He should encourage th e b o r­
row er to conduct his affairs in an o r­
derly and successful m a n n e r in order
th a t he m ay be content to rem ain in
N orthw estern B anker October 1940

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

ChüttQÎ L oans

By C . C . Jacobsen
Dire ctor Regional Agricultural C r e d it
Division, Farm C r e d it Administration,
Washington, D. C.

th e com m unity, educate his children,
and p atronize local business.
T he borrow er should be assisted to
get out of debt and to look upon th a t
com m unity as his p erm an en t place of
abode. In such a position, the b orrow ­
er w ill autom atically become in te r­
ested in th e su p p o rt of his church,
schools, roads, soil building and o th er
p rogram s and m ovem ents for th e im ­
p ro v em ent of th e farm upon w hich he
lives and the com m unity in w hich it is
located.
The loan application of a nom adic
o p erator—you know th e type—th a t
m oves from farm to farm or from com­
m u n ity to com m unity, should be care­
fully scrutinized, since he adds v ery
little to th e civic w elfare, and his b u si­
ness relations w ith th e o th er in terests
of th e com m unity are u su ally of a very
te m p o rary character.
H opeless cases should be recognized
and tre a te d as such, firmly, in tellig en t­
ly, and w ith und erstan d in g , w ith o u t
th e ad m ix tu re of any m audlin sen ti­
m ent. F rom a stric tly business view ­
point, bad faith operators are not en ­
titled to any consideration. H ow ever,
it m u st be rem em bered th a t from this
class, once credit is rem oved, comes
th e com m unity dependents and those
w ho p rey upon honest m en, th e ir prop­
e rty and p ro p erty rights. T hey eith er
join th e crim inal classification w ith a
vicious im pact upon th e com m unity
life, or the shiftless, likely parasites
w ho live upon th e efforts and w ork of
oth er men. It is seldom th a t th ey can
be reh abilitated.
T u rn in g from th is unh ap p y situ a­
tion to a m uch b rig h te r picture, let us
consider b a rn y a rd ch attel loans for a
few m inutes. F rom an analysis and
evaluation of m y experience, both as
an Iow a b an k er and an ad m in istrativ e
officer of the Regional A g ricultural
C redit Division, originally operating in
48 states, I am convinced th a t these

b arn y ard loans are n ot only a satis­
factory form of investm ent, but,
th ro u g h credit extended on such se­
curity, good resu lts can be obtained,
both for th e b o rrow er and for the com­
m unity.
B arn y ard ch attel loans, w hile involv­
ing a large n um ber of people, are rela­
tively sm all in am ounts, averaging be­
tw een $600 and $700 in size. The prop­
er and efficient rep ay m en t of such a
loan should be from earnings of th e
land or livestock; or, to p u t it an o th er
way, from th e sale of su rp lu s pro p erty
rep resen tin g such earnings. C ertainly
the sh ifting of th e credit from one
lending agency to an o th er solves no
problem and does not accom plish liqui­
dation. O rderly liquidation is the u lti­
m ate goal—-the ideal situ atio n to be
b ro u g h t about, for th e n the borrow er
becomes m ore able to assum e his re ­
sponsibility as a su stain in g m em ber of
the com m unity.
Com petition betw een banks, w hile
fu ndam entally keen, is not so intense
as a t one tim e; in fact, b ankers have
come to recognize th a t an o th er m an
m ay be in th e sam e business and still
m ight be all right!
The regional a g ricu ltu ral credit cor­
porations w ere created late in 1932 and
w ere designed to relieve a distressing
situ atio n th e n existing in th e field of
a g ricu ltu ral credit.
In stead of the
year 1932, looking forw ard, we are
now in th e y ear 1940 looking backw ard
a t p ast perform ance of the corpora­
tions. I feel sure th a t you w ill be in ­
terested in a brief resum e of th a t rec­
ord.
Only secured loans on ag ricu ltu ral
personal p ro p erty w ere made; loans
w ere m ade direct to borrow ers; th ere
was no com petitive effort; credit w as
extended to farm ers in localities w here
existing credit facilities w ere inade­
quate; and th e loans, to a large extent,
consisted of capital loans w hich w ere
to be repaid from fu tu re earnings.
The corporations w ere placed in
liquidation in May, 1934. D uring the
period of active lending operations,
n early 200,000 individual loans w ere
m ade for a total am ount of $328,000,000, exclusive of renew als. T here is an
uncollected balance of loans am ount-

19
Ing to about seven and one-half m il­
lion dollars a t th e p re se n t tim e.
In sum m ary, 96.7 p er cent has been
paid in cash; 7/10 of 1 p er cen t has
been ch arged off as d eterm in ed loss;
2/10 of 1 p er cent has been tra n s ­
ferred to real an d p ersonal p ro p e rty
account, and th e uncollected loans out­
stan d in g 2.4 p er cen t—to tal 100 p er
cent.
W hen th ese loans w ere m ade, th e
b o rro w ers u sed th e proceeds to pay
th e ir debts to m erch an ts, bank ers, doc­
tors, and others; hence th e y w ere of
assistan ce n o t only to bo rro w ers by
p e rm ittin g th em to re ta in possession
of th e ir perso n al pro p erty , b u t w ere
helpful to th e com m unities because of
th e sorely needed liquidation afforded
a t th e tim e.
F ro m appearan ces now, it is q uite
possible th a t th is activity, w h en finally
closed, w ill be able to re tu rn to th e
F ed eral g o v ern m en t practically all
funds advanced for operatin g expenses
in ad dition to rep ay in g th e o u tsta n d ­
ing capital. In o th er w ords, th e v e n ­
tu re w ill have been conducted a t p rac­
tically no loss to th e g o v ern m en t b u t
to th e g re a t benefit of farm ers and
stockm en.
L iquidation of th e rem ain in g loans
is progressin g in an o rd erly m anner.
T he b o rro w er w ho is operatin g in good
faith and p ro tectin g th e security, is be­
ing carried an d encouraged. T he fact
th a t th e re has been a cash liquidation
of 96.7 p er cen t clearly dem o n strates
th e h o n esty and good in ten tio n s of
th e A m erican farm er. It also dem on­
stra te s courage, resourcefulness, and
th e real debt-paying ab ility of th e a g ri­
c u ltu ra l in te re sts of th is nation.
W h at is th e record m ade by th e
RACC in Iowa? It is a source of g ra t­
ification to m e th a t th e record in Iowa,
m y hom e state, is v ery favorable.
Briefly, it is:
A m ount le n t .............................$9,250,000
A m ount of loans o u tstan d in g
Ju n e 30, 1940............
2,791
C harged off from organiza­
tio n to Ju n e 30, 1940
12,367
In sum m ary, 99.84 p er cent has been
rep aid in cash, 13/100 of 1 p er cen t has
been charged off, 3/100 of 1 p er cent is
still o u tstan d in g —to tal 100 p er cent.
B an k ers of Iow a have ta k e n back
m an y of th e loans w hich th e RACC
carried an d th u s have assisted in th e
p ro g ram of ord erly liquidation, en ab ­
ling bo rro w ers to find a p erm an en t
source of credit.
I t is n o t contem plated th a t an au c­
tio n or so-called “scav en g er” sale of
charged-off RACC loans w ill be held,
as is often cu sto m ary in w inding up
th e affairs of corporations or necessary
un d er th e law in liquidating lending
in stitu tio n s placed in receivership.

T he RACC b o rrow ers w hose loans
have been charged off w ill be req u ired
to pay th e ir accounts if, a t a later date,
th e ir financial condition im proves to
th e ex ten t th a t th ey have th e ability
to do so. W hile on th e subject of
“scavenger” sales, I should like to ex­
press an opinion of th e prevailing

m ethod used in disposing of th e resi­
due of th e assets to close a receivership
or to w ind up th e affairs of a corpora­
tion. R ecently I noticed in a W ashing­
ton new spaper th a t for th e sum of $150
an a tto rn ey had purchased uncollected
bank assets w ith a face value of m ore
(T u rn to page 52, please)

^Entailed** Farm

Management

By Richard Cole

A

CCORDING to m y dictionary, th e
w ord “en ta il” m eans “to lim it th e
in h eritan ce of a landed estate to a
specified line of heirs, so th a t it can­
not be alienated, or bequeathed a t
pleasure, by any one possessor.” It
is an old E nglish custom , not perm itted
in th is country. T he n earest th in g
to it th a t I ’ve ever h eard of w as told
m e recen tly by Cornelius J. Claassen, head of th e .F arm ers N ational
Com pany of Omaha.
Am ong some 500 clients for w hom
Mr. C laassen’s com pany m anages land
is a w idow w ho ow ns four fine Iow a
farm s. In M arch, 1939, th is w om an
tu rn e d over one of h e r farm to the
F a rm ers N ational Com pany as a tria l
proposition.
A ccording to Mr. Claassen, one of his
a ssista n ts called on th e lady this
sp rin g to find out if th e m anagem ent
service w as proving to be all th a t she
had expected. He rep o rted as follows:
“She told m e th a t she liked our serv ­
ice v ery m uch and th o u g h t we w ere
doing an excellent job, b u t th a t it cost
too m uch m oney. I th en asked h er for
th e farm re n ta l statem en ts she had
received from us du rin g th e year, and
w h en she produced them , I totalled
th e income, w hich am ounted to $1170.63. The lady appeared som ew hat su r­
prised, and asked me if I w as sure
th a t w as correct. So I re-checked the
figures and found no errors. A fter de­
ducting our 10 p er cent, th ere w as left
a n et of $1053.57.
“I th e n asked th e lady if she could
tell me w h at she had received from
th is farm the previous year. She
looked at me w ith w h at seem ed to be
an expression of em b arrassm en t and
said, ‘Yes, I have th a t record,’ and pro­
ceeded to dig it out of h e r w ritin g
desk. Upon exam ination it revealed
th a t she had received only $857.22 for
1938. She w as sim ply astounded to
find th a t after paying our fee, she w as
still $196.35 b etter off th a n she had
been th e previous y ear.”
As a re su lt of this dem onstration, it

w as n a tu ra l th a t th e lady should w ant
th e F a rm e rs N ational Com pany to
m anage h e r o th er properties, b u t she
w en t fu rth e r th a n this. H er b est farm
w as one of 240 acres, operated on a live
stock basis. This, she told Mr. Claas­
sen ’s rep resen tativ e, w as intended for
h er adopted son, w ho w as not a farm ­
er and probably nev er w ould be. She
in tended to w ill th is farm to him , and
w an ted to be certain th a t he alw ays
k ep t it and th a t it rem ained in good
condition, producing a satisfactory in ­
come. She said th a t she could th in k
of no b e tte r w ay to assure th is th a n
to m ake a provision th a t it should al­
w ays rem ain in th e care of th e F a rm ­
ers N ational Company, and she w anted
to know how th is arran g em en t could
be w orked out. The req u est w as for­
w arded to Mr. Claassen, w ho subse­
qu en tly told me:
“I suggested th at, in draw ing h er
will, she should have such a provision
incorporated, and th a t h er atto rn ey
could best advise how it should be
done. I fu rth e r suggested th a t she
qualify th is a rran g em en t by m aking it
contingent on th e condition th a t th e
F a rm e rs N ational Com pany should
continue to give th e p ro p erty com pe­
te n t supervision.
“I do n o t know th a t th e lady has car­
ried out h e r intention, b u t I presum e
she will, for she certain ly seem s sold
on our ability to m anage h e r property.
If she does, it w ill be th e first tim e
we have ever been tied up in an a r­
ran g em en t of th is kind, and it seem s
ra th e r unusual. But, since th e young
m an w ho w ill eventually own th e farm
is e n tirely unfam iliar w ith farm ing
and farm practices, th e re is good logic
to th e lady’s reasoning.”
And, having seen w h a t has h a p ­
pened to m any fine farm s in h erited by
city folks, I th in k Mr. C laassen m ight
w ell have added th a t m ore farm ow n­
ers w ould be w ell advised to seek
sim ilar m anagem ent arran g em en ts to
in su re th e ir properties being adequate­
ly cared for, at least du rin g th e life
tim e of th e ir im m ediate heirs.
N orthw estern B anker October 1940


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

20

Buying

MutlÎCtpCtf Bonds

For Bank Investment

A

LLOW me to suggest th a t m u ­
nicipal bonds cannot be b o ught
blindly. J u s t because it is a
m unicipal bond does not m ean it is al­
w ays a safe or p ro p er bond to buy. If
an offering is m ade to you due in five
y ears a t a yield of 2 p er cent, w h en
m ost o th er m unicipals of th a t m a tu rity
yield only 1 p er cent, th e practical
b u y er w ill leave it alone or to u ch it
v ery lightly. As a general rule, m a r­
k ets are a correct c riterio n of value.
N atu rally th e re are som e exceptions
b u t v ery few in m unicipals. So-called
“sleep ers” in th e m unicipal m a rk e t are
usu ally found to be ailing—not ju s t
dorm ant. It is tru e th a t th e re a re v ery
few really poor m unicipal bonds b u t
th e re are a few and th ese should be
avoided by an y b a n k e r regardless of
price or m a tu rity or tem p tatio n . T here
are approxim ately $19,000,000,000 of
m unicipal bonds o utstanding. By far,
th e g re a t m ajo rity of these bonds are
good, probably 95 p er cent of th e total.
B ut w ith in th is 95 p er cent are m any
g ra d a tio n s — (a) hig h est grade, (b)
high grade, (c) m edium grade. I t is
som etim es quite difficult to d istinguish
a m edium from a h igh grade m unici­
pal. T he line of dem arcation is often
v ery slight an som etim es d isappears
altogether. T his is a good point to
“Stop and look.”
W ith a level of prices as h igh as th e
one we are now enjoying (?), th e re is
no leew ay for failure, an d since we
have to pay th ro u g h th e nose to own
m unicipals th ese days, th a t is all th e
m ore reaso n w hy ow nership should be
confined to only th e good ones. A de­
fau lt in principal of one block of m u ­
nicipals in y o u r account m ig h t be suffi­
cient to w ipe out th e to tal incom e on
yo u r en tire m unicipal holdings. Cau­
tion, th erefore, should be up p erm o st
in our m inds a t th is tim e.
As a general rule, it is believed to
be desirable to confine m unicipal p u r­
chases for b ank portfolio to th e sh o rt­
er te rm m atu rities. I shall define
sh o rt-term as being definitely those
m a tu ritie s n o t over ten y ears and p re f­
erab ly u n d e r five years. I t is tru e th a t
if a portfolio is lim ited e n tirely to five
y ears today, th e re isn ’t m uch re tu rn
and th e re isn ’t an y fu n in th e in v e st­
m ent. H ow ever, each b a n k can b est
determ in e its m a tu rity run-off schedN orthw estern B anker October 19W

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

sh o rt m aturities, b u t a t tim es not so
good for th e longer-term bonds over
C a sh ie r and Manager Bond Department
ten years. M any of us are active in
The Northern Trust Company
sh o rt m atu rities a t all tim es, w h eth er
Chicago
the m ark et is high or low, and w h eth er
business is good or bad; consequently
m ark etab ility is usually not only good
b u t constant and broad due p rim arily
to th e large nu m b er of people in te r­
ule for itself. If th ere is a substantial
ested in th e sam e thing.
holding of long-term governm ents or
To some banks I w ould suggest con­
corporates in y o u r account, th e n m u ­
fining
m atu rities to five years, and
nicipals m ight w ell be sh o rte r in m a­
tu rity th a n otherw ise. On th e o ther buying equal am ounts m a tu rin g one
to five years. To others, w ho are con­
stituted, psychologically and financial­
ly, to assum e fu rth e r risks, I w ould
recom m end a portfolio of m unicipals
ru n n in g one to ten y ears w ith equal
run-offs each year. To o thers I m ight
suggest exclusively those bonds m a­
tu rin g five to ten y ears w ith th e elim i­
nation of th e v ery sh o rt m atu rities
entirely. M uch depends on the neces­
sity for additional income, th e m a tu ri­
ties of o th er th a n m unicipal bonds,
and th e loan an d cash positions of
individual institutions.
It is difficult to space a m unicipal
account so accurately as to have the
sam e m onthly run-offs. T his m ight be
ideal b u t is n ot as practical as equal
an n u al m aturities. A t tim es large city
banks or banks w ith active bond de­
p artm en ts are justified in ow ning long­
er term m unicipals for investm ent.
H ow ever, th is is usually done on a
tem p o rary basis, or for trad in g profits,
and is not recom m ended as feasible in
PA T G. M O R R IS
th e case of th e average bank. The
p resen t com paratively high level of
hand, if v ery few long governm ents
th e m unicipal m a rk e t is generally rec­
and corporates are held, th e n th e re
ognized. B oth sh o rt an d long-term
seem s to be no reason w hy a m unicipal
bonds of th is type are selling now a t
account m ight not be spread out to ten
years. N ot only are long-term m unici­ th e h ig h est prices and th e low est yields
at w hich th ey have sold since records
pals subject to m ark et risk, b u t a t th e
have been kept. I do n ot necessarily
sam e tim e th ey lack sufficiently broad
m ark etability, if held in large am ounts, m ean to im ply an early term in atio n to
th is p re se n t m a rk e t condition. The
to m ake them a ttractiv e to m ost banks
big job at p resen t is how to find some
as an investm ent. It is w ell know n
th a t nearly all banks, large and small w ay of overcom ing th e abnorm ally
low rates of re tu rn from such invest­
alike, are in terested now in buying
m unicipal bonds m atu rin g from one to m ents, and th is is p re tty difficult to do.
five years. A g reat m any banks are in ­ T here are, how ever, some m echanical
terested in from one to ten y ear m a­ m ethods of increasing incom e w hich
tu rities, b u t v ery few have an y in te r­ should be m entioned. F irst, m atu rities
est in m atu rities over ten years for m ight be lengthened w h ere feasible,
and y et m ain tain th e m unicipal in v est­
th e ir ow n portfolio. F o r th is reason
m ark etab ility is excellent, w ith n a r­ m ent w ith in a ten-year period. Pos(T u rn to page 73, please)
row spreads and broad in te re st for the

By Pat G . Morris

21

M EM B E R
FEDERAL
DEPOSIT
INSURANCE
CORPORATION

Bank
N orthw estern B anker October 19W

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

22

N

ew s
OF

THE

V

a n d
B A N K IN G

ie w s

W O RLD

By Clifford De Puy
F R E D AV. ELLSAArORTH, vice presiI" den t of T he H ibern ia N ational B ank

in N ew O rleans, in a re c e n t com m uni­
cation to us said: “N eedless to say, I
am only too glad to do ev ery th in g I
can do to in su re th e election of W en­
dell W illkie, th is honest-to-goodness
A m erican citizen, and th ereb y send to
w ell-deserved oblivion those w ho in
th e p ast seven y ears have been doing
th e ir b est to h am strin g legitim ate and
constructive com m ercial an d in d u s­
tria l accom plishm ents.”
H enry A. W allace, in one of his re ­
cent cam paign speeches said: “I hope
som eone tak es aside th e first person
w ho cries out for a re tu rn to norm alcy
and reduction of spending, and takes
a good bite out of his ear. R epublicans
are w ell-m eaning people w h o are just

it certainly covers th e ir activities in a
splendid m an n er.”
Fred B. Brady, vice p resid en t of
th e Commerce T ru st Com pany of K an­
sas City, received a le tte r from one
of his b an k er friends soon after the
D em ocratic N ational C onvention in
Chicago, and th is is w h at it said:
“D ear Fred:
“M any tim es I have been asked by
th e city banks w h at th ey could do for
me. I have now arriv ed a t th e place
w h ere I need some genuine physical
assistance.
“A fter th e nom ination of th e H on ­
orable H en ry A. W allace, every hog
on w hich th e b ank had a ch attel m o rt­
gage, took to th e b ru sh and has not
been seen since.
Y ours tru ly ,”

plain ign oram uses.”

No one th a t we know of has been
talk in g about norm alcy, b u t w e w ould
like a re tu rn to sane economics.
If our g o v ern m en t continues w ith
a con stan tly u nbalanced b udget we
w ill have m ore th a n o u r ears b itten
off. W e w ill have our e n tire w ay of
life underm ined.
Also if R epublicans are ju s t plain
ignoram uses we are su rp rised th a t th e
New D ealers w ould be u rg in g th em to
vote th e D em ocratic ticket. B ut p e r­
haps it w ould be b e tte r to say th a t any
R epublican w ho does vote for New
Deal m easures is an ignoram us.
Leonard H. V an H orne, a ssista n t

natio n al b an k ex am in er of K ansas
City, and th e son of E. N. Van H orne,
vice p resid en t of th e A m erican N a­
tion al B ank and T ru s t Com pany of
Chicago, is th e p ro u d fa th e r of a boy,
b o rn recently, w hich, of course, p u ts
E d in th e g ra n d fa th e r class, although
no one w ould believe it because he
looks so young and handsom e, and
doesn’t have a g ray h a ir in his head.
W ard F. Senn, p resid en t of th e
A m erican M utual Life In su ran ce Com­
pan y of Des Moines, in a re c e n t le tte r
to us said:
“The Septem ber C onvention Issue
of N o r t h w e s t e r n B a n k e r is a n o th er
splendid accom plishm ent on w hich I
w a n t to co n g ratu late you. The b a n k ­
ers of th e n o rth w e st should be as
proud of it as you m ig h t w ell be, for

In

a

recen t

com m unication

to

George P. E dw ards, editor and pub­

lish er of th e Coast B a n ker of San
Francisco, we m ade th e rem ark that,
“A bout 20 per cent of th e population
of C alifornia w as on relief.”
In answ er to th a t point Mr. E dw ards
w ro te us th e follow ing letter, w hich is
a v ery in terestin g analysis of th e en­
tire situ atio n in California, both as to
its economics and to its politics. We
th in k th a t you w ill be in terested in
read ing it. H ere it is:
“R egarding th e political situ atio n
h ere in California — California n o r­
m ally is a R epublican state, b u t w hen
W oodrow W ilson first w en t in for
P re sid en t th e state w en t for W ilson
by a n arro w m ajority, and th en it w ent
R epublican u n til th e last election,
w h en th e candidate in favor of the
H am an d Eggs proposition w as elected
G overnor. T he Senate, how ever, w as
R epublican and in th e A ssem bly th ere
is a com bination of R epublicans and
D em ocrats w ho w ere opposed to Gov­
ern o r Olson, th e p resen t G overnor.
“W e h ad a P rim a ry here and Sen­
a to r Johnson w as th e candidate for
th e n om ination of all parties, and w on
in all th ree prim aries. Also, G overnor
Olson is try in g to purge out some of
th e legislature m em bers.
Senator
Jo h n so n is a real statesm an, I don’t
agree w ith m any of his ideas b u t still
you know he is h onest and honestly
believes in his ideals. As to W illkie—
he w ill have th e votes of 500,000 Dem­

ocrats, considering th e registered vote
as it now stands in California; this,
added to th e R epublican vote, w ill
elect him. It seem s possibly, a h ard
fight to get 500,000 D em ocrats to vote
for a R epublican candidate and he m ay
not get th a t m any, b u t he is going to
get a g reat m any. The people w earing
W illkie b u tto n s out h ere re p re se n t all
social classes. Several rich m en are
w earing them u n d e rn e a th th e lapel,
out of sight. A lot of th e w orking-m en
friends of m ine w ear th em outside on
th e lapel.
“You know Los Angeles and th e Los
A ngeles d istrict has a rep u tatio n of
possessing m ore ‘screw y’ ideas as foun­
dation for organizations, th a n any
o ther p a rt of th e w orld. T h at is w here
th e H am and Eggs idea started and is
still p re tty strong, and th ere are about
1,000 different religious sects dow n
th ere and th ey also, dow n in th a t sec­
tion, have m any fu n n y political ideas.
On th e o th er hand, th ere are m any
sensible people th ere and Mr. W illkie
is going to get a trem endous vote.
T hey have a v ery thrifty-sized W PA
and o th er relief organizations and
G overnor Olson has fought h ard to
get large app ro p riatio n s for relief.
M any scandals have been developed
and m an y people have been purged
from th e relief rolls because th ey w ere
chiselers, n ot en titled to be on relief.
“Tell you one thing, Cliff — these
W estern states are going to give a
good re p o rt for them selves at the com­
ing election an d th e W illkie vote is
going to be m uch g reater th a n w as th e
R epublican candidate’s last y ear.”

j

J

John Hogan Dies
Jo h n H. H ogan, a vice p resid en t of
th e C ontinental Illinois N ational B ank
and T ru st Com pany of Chicago, died
last m onth in his hom e in L ibertyville,
Illinois.
He is survived by his widow, Grace,
and by tw o sisters, Mrs. Thom as J.
G uthrie and Mrs. A. S. W iltsey, both
of Des Moines.
Mr. H ogan w as born in Dallas Cen­
ter, Iowa, Ju n e 6, 1882. He began his
banking career in Des M oines in 1904.
In 1915, he becam e an officer of th e
Des Moines N ational Bank, and la te r
w as elected a director and p resident of
th a t in stitu tio n . In 1926, he came to
Chicago as a vice presid en t of th e
C ontinental & Com m ercial N ational
Bank, w hich later becam e a p a rt of th e
C ontinental Illinois N ational B ank and
T ru st Company.
Mr. H ogan w as presid en t of the Re­
serve City B ankers A ssociation in
1933, and w as w idely know n in b an k ­
ing circles. He w as active in th e af­
fairs of th e A m erican B ankers Asso­
ciation and in m any civic interests.

á

4

N orthw estern B anker October 19k0

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Federal Reserve Bank of St. Louis

r

23

South Dakota
H E R E w ere $3,645,830.12 in South
D akota’s gen eral funds on A ugust
31, 1940, as ag ain st $1,642,964.31 a
y e a r ago, and $29,915.00 on Ju n e 30,
1938; $15,030,779.99 cash on h a n d in all
funds on A ugust 31, 1940; $4,598,890.54
received from sales taxes and certain
m iscellaneous taxes th e first eight
m onths of th is y ear as ag ain st $4,197,584.20 for th e sam e period a y ear ago,
and gasoline taxes of $3,463,501.02 as
ag ain st $3,190,956.50. T hese increases
follow su b sta n tia l increases in 1939
over 1938. T he to tal state ex penditures
for th e fiscal y e a r ending Ju n e 30,
1940, w ere $25,565,227.61, or $4,100,246.44 less th a n for th e preceding year.
T hree states alone of all th e U nited
States sh ared th e h onor of being listed
in a stu d y en titled “L ong T erm D ebts,”
m ade by th e U nited States D ep artm en t
of Com m erce as h av in g reduced th e ir
to tal state, county, m unicipal, school
and to w n sh ip debt d u rin g th e decade
covered by th e study. One of these,
South Dakota, has continued reducing
its debts a t an even m ore rap id pace
d u rin g th e su b seq u en t period w hen
m an y o th er states and th e F ed eral
G overnm ent have g reatly increased
th e ir debts. South D akota now has its
debt u n d e r control so th a t th e y can
be paid w ith o u t refunding.
The sto ry of th e s ta te ’s financial
m anag em en t and th e d eterm in atio n
of its citizens to be debt free is d ram a­
tic and convincing.
G overnor Bushfield, w ho ra n and
w as elected on an econom y platform ,
said in his m essage to th e 1939 ses­
sion of th e legislature, “M uch has
been said about econom y and red u c­
tion of taxes, b u t little, if anything,
has ever been done about it.”
O utlining his plan s to do som ething
about it and to ru n South D akota on
a businesslike basis, th e governor sug­
gested th e follow ing m ajor econom ies:
T w en ty p er cent red u ctio n in th e
ex p en d itu res of each state departm en t.
The abolition and consolidation of
specific boards and com m issions.
L iquidation of th e lands of th e
R u ral C redit D ep artm en t in five years.

T

Y ear E n d in g Ju n e 30,

Puts Its House In O rder
A Story of
Fiscal
W ell-Being
E lim ination of th e tw o m ill p ro p erty
state tax.
R epeal of nuisance taxes on b u si­
ness.
T he legislature w as rep resen tativ e
of th e sp irit of th e people of th e state
of South D akota and proceeded to
enact G overnor B ushfield’s proposals
into law. The state officials proceeded
to place th e plan in operation. The
re su lts are reflected in th e condition
of th e S tate T reasu ry as above set out.
T here are th re e series of bonds still
unpaid: The R ural C redit issues total
$35,294,000, th e Soldier Bonus $6,000,000, th e Cem ent P la n t $2,000,000.
T he Cem ent P la n t bonds have a
sinking fund already sufficient in
am ount to re tire th e principal and
to pay all in te re st to m aturity.
The Soldier’s Bonus sinking fund
now totals $5,127,748 and provision
has been m ade for th e tra n sfe r of
$785,000 from th e sta te ’s general fund
d u rin g th is fiscal year. This, together
w ith an additional tra n sfe r of about
$500,000 n ex t year, w ill provide for
th e p aym ent of this issue in full.
T he m ost serious problem w as th e
o u tstan d in g bond issues for R ural
C redit purposes. These bonds w ere
o riginally supposed to be serviced
th ro u g h th e liquidation of m ortgages
m ade from th e funds borrow ed. The
depression and successive y ears of
d ro u g h t caused such a sh rin k in g of
land values th a t th e deficit had to be
m et by general and special taxes, th e
1939

Office and F ield E x pense .................. $161,175.21
Cost of M aintenance of F a rm s . . . . 132,772.15
Collection on L oans
...................... 407,039.76
Cash Sales of R eal E sta te and
P ay m en ts on C ontracts .................. 221,640.77
F a rm L ease Collections .................... 585,708.89

1940
$128,653.27
82,472.21
418,442.25

Increase or
D ecrease
—32,521.94
—50,299.94
+11,402.49

649,105.75
634,516.25

+427,464.98
+48,807.36

GOV. H A R L O W B U S H F IE L D

full faith and credit of th e state h av ­
ing been pledged w hen th e bonds w ere
issued.
The problem of the ou tstan d in g
bonds w as th e fact th a t th ey w ere
m atu rin g too rapidly to be m et w ith ­
out a decided increase in taxes, w hen
due to abnorm al w eath er and business
conditions, it w as deem ed desirable to
decrease th e burden.
The R u ral C redit Board, headed by
G overnor Bushfield, appointed th e V.
W. B rew er Com pany as its fiscal agent
and charged it w ith th e responsibility
of proposing and recom m ending a
plan for tak in g care of th e debt and at
th e sam e tim e arran g e a decrease in
th e tax burden. A plan w as evolved
by th e fiscal agent w ith th e m ost
helpful cooperation from a b anking
syndicate headed by L ehm an B rothers
and join tly m anaged by L ehm an
B rothers, th e F irst N ational B ank &
T ru st Com pany of M inneapolis and
W ells-Dickey Com pany of M inneapo­
lis, w hereby some of the bonds w ere
extended serially to 1959, w hich lev­
eled th e paym ents to th e capacity of
th e state to pay w ith o u t fu rth e r re ­
funding and to com pletely am ortize
th e debt by A ugust 1, 1959.
This proposal w as p resen ted to th e
citizens of th e state of South D akota
at a public m eeting held at th e state
house in P ierre in A ugust, 1939, and
received w ide-spread new spaper and
editorial com m ent. The co n tract for
th e extension, as finally adopted, m et
w ith general approval.
(T u rn to page 34, please)
N orthw estern Banker October 19b0


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

24

1871

,i

1940

----

a ni mo v r,o n
The desire of m en in the sa m e line of
en d ea v o r to work together for the com m on
g ood is on e of the cornerstones of A m er­
ican bu sin ess.
To the N ebraska Bankers A ssociation , in
convention this m onth in Lincoln, w e offer
hearty congratulations for the contribution
it h a s m ad e tow ard sound b an k in g in
N ebraska.
W e rejoice in the p rivilege of w orking
w ith other A ssociation m em bers tow ard
this com m on g o a l.

W e take this opportunity to invite
yo u to visit us w h ile yo u are in
Lincoln for the 1940 Convention.

THE

F IR S T

N A T IO N A L

BANK

of
LINCOLN, NEBRASKA

Capital and Surplus

-

. . .

D e p o s i t s ......................................

$ 1,306,000
20,496,643

OFFICERS
GEORGE W. HOLMES
P. R. EASTERDAY........Executive Vice President
L. C. CHAPIN...............................Vice President
STANLEY MALY .........................Vice President
B. O. CAMPBELL.............. Junior Vice President
HOWARD FREEMAN ............................... C ashier

......................President
DONALD P. EASTERDAY.A ss't Vice Pres.
ERNEST U. GUENZEL................ A ss't Vice Pres.
CLIFFORD G. WESTON.......... A ssistant C ashier
A. C. GLANDT........................... A ssistant Cashier
R. J. BECKER..............................A ssistant C ashier

M em ber Federal D ep osit Insurance Corporation

N orthw estern B anker October 1940

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

43 rd Convention
>í t h .

Nebraska
Bankers Association
Lincoln, October 2 4 - 2 5
THE

PROGRAM '

HE F o rty -th ird A nnual C onvention
of th e N ebraska B an k ers A ssocia­
tion w ill be held a t Lincoln on
T h u rsd ay and F rid ay , O ctober 24 and
25. H e ad q u arters w ill he a t th e H otel
Lincoln. W hile th is is th e forty -th ird
an n u al m eeting, it is th e F iftie th A n­
n iv e rsa ry of th e founding of th e as­
sociation, since ap p aren tly th e re w ere
no reg u lar m eetings in th e early days
of th e organization.
T he com plete pro g ram is as follows:
!

T

Thursd ay Morning, O cto b e r 24th

8:00—R egistration, a t th e C onvention
desk on m ezzanine, H otel L in ­
coln.
10:30—The R esolutions C om m ittee will
hold its first m eeting in th e
E n g lish Room, th e m ezzanine,
H otel Lincoln.
11:30—The N om inating C om m ittee will
hold its first m eeting in P a r­
lor J, th e m ezzanine, H otel
Lincoln.
Thursday Afternoon, O cto b e r 24th
Ju n ior Ballroom, Hotel Lincoln

1:30—Call to O rder by P re sid e n t C.
C. N eum ann.
1:30—Invocation.
2:00—A ddress by Dr. P au l F. Cadm an
of th e A m erican B an k ers A s­
sociation, N ew York City,
“Econom ic an d Social Sig­
nificance of the N ational De­
fense P ro g ra m ”.

3:00—A ddress by Dr. M elchior Palyi,
Chicago, “T he T u rn in g P oint
of th e W a r”.
4:15—A djournm ent.
Thursday Evening

6:00—D inner of th e A ssociation of
F o rm er P residents, E nglish
Room, th e m ezzanine, H otel
Lincoln.
8:30—Public Session, St. Paul M. E.
Church. A ddress by W. J.
Cam eron, F ord M otor Com­
pany, D etroit, Michigan.
F rid a y Afternoon, O cto b e r 25th
Frid ay Morning, O cto b e r 25th

10:30—Conference. Safety Box L iabil­
ity. R. S. K roeger, C hairm an
of the com m ittee, presiding.
E nglish Room, th e m ezzanine,
H otel Lincoln.
10:30—Conference. W age-H our Law.
E arl H. W ilkins, C hairm an of
th e E xecutive Council, p re ­
siding. G arden Room, the
m ezzanine, H otel Lincoln.
10:30—Conference. C onsum er Credit.
E dgar McBride, C hairm an of
the com m ittee, presiding. Ball­
room, H otel Lincoln.
10:30—Conference.
C om peting Loan
Agencies. Otto Kotouc, C hair­
m an of th e com m ittee, p resid­
ing. A rbor Room, lobby floor,
H otel Lincoln.
10:30—Conference. Public Relations.
W m. N. M iten, C hairm an of

1:30—Call to O rder by P resid en t C. C.
N eum ann.
1:35—Election of N ebraska officers
for th e A m erican B ankers As­
sociation, by m em bers of th a t
organization, Ivan C. Riley,
state vice p resident of th e
A.B.A., presiding. Offices to
be filled are: A state vice
p resid en t
succeeding
Mr.
Riley; a vice p resident of th e
State B ank Division succeed­
ing L. C. Farw ell; a vice p resi­
dent of the N ational B ank Di­
vision succeeding C. C. N eu­
m ann; a vice presid en t of th e
T ru st D ivision succeeding S.
C. W augh; a vice p resid en t of
th e Savings B ank D ivision
succeeding H enry A. Hovey; a
m em ber of th e N om inating
Com m ittee to act at th e 1941
N orthw estern B anker October 19'i0


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Federal Reserve Bank of St. Louis

26
A.B.A. convention and an a l­
tern ate.
1:50—-Report of A uditing Com m ittee.
1:55—R ep o rt of R esolutions Com m it­
tee by C hairm an J. V. W eb­
ster.
2:10—R eport of N om inating Com m it­
tee
by C hairm an H. A.
Schneider. E lection of officers.
2:20—A ddress by Hon. E m il Schram ,
W ashington, C hairm an R e­
co n stru ctio n F in an ce C orpora­
tion, “A Cycle in N ational De­
fense F in a n c in g ”.
3:05—A ddress by F re d C. W eigm an,
F rem o n t, P re sid e n t M idland
College, “My B an k er and I ”.

Business Sessions

F rid ay Evening, O cto b er 25th

6:30—B anquet. Ballroom , H otel L in ­
coln.
R em arks by Bess G earh art Mor­
rison.
9:00—Dance. Ballroom , H otel Lincoln.
Music by Ju n g b lu t and Beck
O rchestra.
Registration

W ednesday aftern o o n October 23d at
ab o u t 5:00 o’clock th e secretary ’s desk
w ill be opened on th e m ezzanine, H o­
te l Lincoln, w here it w ill be m ain ­
tain ed th ro u g h o u t th e Convention for
re g istratio n of delegates and o th er
business of th e Convention.

T here w ill n o t be any session of the
general C onvention T h u rsd ay m o rn ­
ing. J u s t reg istratio n and visiting.
The first business session of th e gen­
eral C onvention w ill be in th e Ju n io r
Ballroom , H otel Lincoln, a t 1:30
o’clock T hursday, October 24th.
F rid ay m orning w ill be devoted to
conferences on v arious subjects, no
general C onvention session being
scheduled u n til 1:30 o’clock in th e
Ju n io r Ballroom .
Executive Council

The an n u al d in n er and business
m eeting of th e E xecutive Council w ill

( A d vertisem en t)

"Roll

of
...

Honor" Banks

N E B R A S K A

...

It is an honor to be listed among the H O N O R R O L L B A N K S. It indicates that the
bank has SURPLUS and U N D IV ID ED PROFITS equal to or greater than its capital

T h e banks listed on th is page are som e o f N eb ra ska ’s ou tsta n d in g H onor R o ll
B a n ks. B y careful m a n a g em en t and sound b a n kin g th e y have achieved this
en via b le p o sitio n . T h ese b anks w ill be especially glad to h a ndle a ny collections,
special cred it rep o rts or o th er business in th eir co m m u n ities w h ic h you m ay
e n tru st to th em . C orrespondence is invited .

BANK

TOWN
A v o ca...................

F a rm e rs S ta te B ank..

OFFICER

CAPITAL

_____________ ....E lm er H a llstro m ....... ___ $ 15,000

SURPLUS
PROFITS
$ 15,750

C h a d ro n _______ ___ F ir s t N atio n al B an k ______ __________ ....J. V. W e b s te r............ ____

75,000

97,118

C re ig h to n ............. ......A m erican N a tio n a l B a n k ____________ .___D. A. V an D eV eer___ ___

25,000

31,881

G o rd o n .................. ___F ir s t N a tio n al B a n k _________________ ....D. V. S o ren se n ______ ___

50,000

95,000

G ra n d Is la n d ___ ___C om m ercial N a tio n al B a n k __________ ....E dw ard H u w a ld t ___ ___ 100,000

120,816

W eil ......................... ___ 350,000

433,503

L in co ln ................. ___N a tio n al B ank o f C om m erce_________

L o o m is.................. ......F irs t N a tio n a l B a n k _________________ ___.W. H. S w a rtz ......... ...... ____

25,000

42,478

___H. M. K ro g h ....... .........____

75,000

101,670

60,000

68,167

O m a h a .................. ..... Live S tock N a tio n a l B a n k ___________ .. .Paul H a n se n ................. ___ 500,000

608,782

M cCook............

......F ir s t N a tio n a l B a n k ___ __________

O a k la n d _______ ___ F a rm e rs and M e rc h a n ts N a t’l B ank

S ta p le to n ............ ___B ank of S tap leto n
V a le n tin e ............. ......N e b ra sk a S ta te B a n k ________
N orthw estern B anker October 19'tQ

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

. ..A. L. N e u m a n n __ ___

__..F. E. P e te rs o n .......... . .......
J E . C. D a v en p o rt
........
IF . L. C olburn

25,000

35,000

25,000

43,220

27
be a t 6:15 o’clock W ednesday evening,
O ctober 23d in th e Chinese Room, th e
m ezzanine, H otel Lincoln.
F rid a y aftern o o n th e 25th, im m edi­
ately a fte r a d jo u rn m e n t of th e g eneral
C onvention an o rganization m eeting of
th e new E xecu tiv e Council w ill be
called to o rd er on th e ro stru m of th e
C onvention room.
Dinner of Form er Presidents

The A ssociation of P a st P resid en ts
of th e N eb rask a B an k ers A ssociation
w ill have its a n n u a l d in n e r in th e
E n g lish Room, H otel L incoln a t 6:00
o’clock, T h u rsd a y evening, October
24th.

Officers a n d directors of this bank
look forw ard with m uch pleasure to
the 1940 a n n u a l convention of the
N ebraska Bankers Association to be
held in Lincoln O ctober 24-25.

Luncheon fo r Fifty Y e a r Bankers

A t 12:30 o’clock, T hursd ay , October
24th, a luncheon w ill be ten d ered by
th e A ssociation to th e F ifty Y ear Club,
in th e P om peian Room, lobby floor,
H otel Lincoln.

W e especially congratulate the
N ebraska Bankers Association on its
completion of Fifty Years of Service,
which will be celebrated at this y ear's

Com m ittee Meetings

T he R esolutions C om m ittee w ill
m eet in th e E n g lish Room on th e
m ezzanine, H otel Lincoln, T h u rsd ay
m orning, O ctober 24th, a t 10:30.
T he N o m inating C om m ittee w ill
m eet in P a rlo r J, th e m ezzanine, H otel
Lincoln, T h u rsd a y m orning, October
24th a t 11:30.

convention.
If there is anything we can do to
m ake your convention visit profitable
a n d pleasant, p lease com m and us.

Co nferences

'F rid a y m ornin g h as been set aside
for conferences on various subjects.
Local Com m ittees

G eneral C om m ittee on A rra n g e ­
m ents: T. B. S train, C hairm an, M.
W eil, George W. H olm es, P. R. E asterday, B yron D unn, E. A. B ecker. R ecep­
tio n Com m ittee: S tanley Maly, C hair­
m an, W. S. B attey, W m. S tratem an , L.
C. Chapin, J. O. Peck, P aul B orgott, E l­
m er DeKay, S. C. W augh. E n te rta in ­
m e n t Com m ittee. C. W. B attey, C hair­
m an, B. C. Clark, H ow ard F reem an,
Don P. E asterd ay . H ostess Com m ittee:
Mrs. B. O. Campbell, C hairm an, Mrs.
A. A. Held, Mrs. P. R. E asterd ay , Mrs.
E. A. B ecker, Mrs. S tanley Maly, Mrs.
B. G. Clark, Mrs. H ow ard H adley. R eg­
istra tio n Com m ittee: B. O. Campbell,
C hairm an, D. S. Cozad, H ow ard H ad­
ley. H otel Com m ittee: F re d S. A ldrich,
C hairm an, B yron D unn, S tanley Maly.
P u b licity Com m ittee: Don S. Cozad,
C hairm an, E. A. B ecker, A. C. Glandt.
Ju n io r Conference Com m ittee: W. S.
B attey, C hairm an, B yron D unn, H ow ­
a rd Freem an.

Oke
“I ’ve been sleeping like a log.”
“You wood.”

ANNOUNCEMENT
A fte r eleven years’ affiliation ivitli th e N o rth w est
B an co rp o r ation, one o f th e strongest ha n kin g
organizations in th e m id d le and northw est, th e
C O N T IN E N T A L N A T IO N A L B A N K o f L incoln
announces th a t its officers and directors and a group
o f L in co ln business m en have purch a sed th e entire
in terest o f th e B ancor p o r ation in th e capital stock
o f th is bank.

C o n t in e n t a l | s | a t io n a l
°f~

LINCOLN
OFFICERS
T. B. STRAIN................................... President
J. O. PECK............................ Vice President
EDWARD A. BECKER..........Vice President
HOWARD HADLEY....Vice-Pres.-Tr. Ofi'r.
C. W. BATTEY................................... Cashier
W. S. BATTEY....................... Vice President
H. E. LEINBERGER.................Asst. Cashier
FRED S. ALDRICH.............. Vice President
A. W. GRIFFIN.............Asst. Trust Officer

M ember Federal Deposit Insurance Corporation

N orthw estern Banker October 19^0

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

28

Land Bank Meeting
L. L. Zook, su p erv iso r of the state
ex p erim en tal farm , announced th a t
approxim ately sixty fieldm en and sec­
retarie s of F ed eral L and B anks
th ro u g h cen tral N ebraska w ould m eet
in N orth P la tte Septem ber 20 to study
long-range data on farm problem s.
P. H. Stew art, m an ag er of the farm
service division of th e banks, ex­
plained th a t in th e d ro u th years th e
area of low rainfall has g radually
moved eastw ard u n til today th e th irty
y ears of ex p erim en ts a t th e state farm
are applicable in cen tral N ebraska,
w here th e F ed eral L and B anks oper­
ate.
D uring a m orning m eeting at th e
state farm and an afternoon discus­

sion at the H otel Paw nee, th e group
planned to study rotation, crop v arie­
ties, fallow, up-sicle-down farm ing, sor­
ghum s, pastures, rations, erosion,
pum p irrigation, and o th er topics.

played and liberal cash prizes w ill be
given,” T aylor said.

Corn Show

(C ontinued from page 13)
All these changes now m ust be m et
and, due to the fact th a t you folks are
closely organized th ro u g h your A m eri­
can B ankers A ssociation, yo u r various
state organizations, and highly special­
ized organizations such as this, you
have a big advantage over in d u stry
and should m eet them m ore prom ptly.
You have excellent m eans of com m uni­
cation to help you in exchanging your
ideas. You have excellent trad e pa­
pers and soon you are going to have

F a rm ers have already expressed
such in te re st in the C entral N ational
B ank corn show to be held in Colum­
bus th is m onth th a t th e ban k lobby
will be m ore th a n filled w ith entries,
b an k officials predicted.
The boys a t th e b ank announced
th a t in event the en tries “outgrow ”
th e lobby, a te n t w il be erected on
vacants lots south of th e building to
house the show.
“In any case, all en tries w ill be dis­

N IC K E L A N D DIME
BUSINESS

Nebraska
Convention
General Committee
T. B. Strain, President of the
Continental National Bank, Is
Also a Committee Member
GEO R G E W . H O L M E S
President
F irst N ational Bank

E D W A R D A. B E C K E R
V ice President
Continental N ational Bank

BYRON D U N N
E xecu tive V ice President
N ational Bank of Commerce

N orthw estern B anker October 19^0

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

P. R. E A S T E R D A Y
E xecu tive V ice President
F irst N ational Bank

M. W E IL
President
N ation al Bank of Commerce

29
a sales m an u al for b an k personnel.
T h ere isn ’t an y question, th erefore,
th a t you are going to do a good job
in laun ch in g y o u r re ta il sales program .
The point is, how ever, th a t because of
th e fact th a t th e re have been so m any
changes an d because th e re are still
an y n u m b er of in stitu tio n s w ho have
n o t recognized them , we are going to
have to m ake ce rta in ad ju stm en ts in
o u r th in k in g in order to approach th e
p ro g ram w h oleheartedly.
F o r one thing, we m u st acquire an
en th u sia stic and appreciative attitu d e
to w ard s sm all tran sactio n s. Convince
ourselves th a t th ese co n stitu te a n a tu ­
ral, p e rm a n e n t association. As I get
aro u n d th e country, I find th a t any
n u m b er of b an k s are still try in g to
sell w holesale b an k in g to a re ta il m a r­
ket. It can ’t be done because th e
w holesale m a rk e t isn ’t th ere.
We
c a n ’t hope for com pensating balances
from a com m unity w h ere 80 p er cent
of th e people n ev er could and never
w ill be able to m a in ta in them . T here
is, how ever, a p o in t w h ere service
charg es w ill give us a good h ealth y
profit, and d u rin g th e n ex t tw o y ears
as we m ake p rogress in our p lanned
m erch an d isin g p ro g ram I th in k we
w ill be able to price our service in
accordance w ith th e ab ility of the
m a rk e t to pay. If w e w ere in th e coal
business an d decided to ru n a b arg ain
sale by quoting th re e tons for $30, we
probably w ouldn’t sell m uch coal in
a neighborhood w h ere th e people w ere
accustom ed to buying a half a to n a t
a tim e, even th o u g h th e coal m ig h t be
w o rth $15 a ton. T he sam e th in g is
tru e in estab lish in g prices for service
charges. C harging a dollar for te n
checks m ig h t be a good bargain, b u t
w h a t about th e m an th a t doesn’t w a n t
to w rite te n checks? A nd w ould we
n o t p erh ap s be able to sell m ore such
serivce if our prices conform ed to
good cost form ulas? Too m an y of us
still look upon th e service charge as
a “stop g ap ” and an ticip ate th e tim e
w h en th e “good old d ay s” w ill re tu rn .
P e rh a p s in te re st ra te s w ill come back
som e tim e b u t our problem now is
serv in g th e nickel and dim e m ark et.
You can alm ost nam e on y o u r fingers
th e n u m b er of b an k s in th e co u n try
w ho should cater to th e Tiffapy trade.
All th e re s t should cater to th e Woolw o rth trade. If we can acquire an ap ­
p reciative a ttitu d e to w ard s th is Woolw o rth b u siness th e n we are going to
overcom e th e m ain obstacle th a t is
now h in d erin g our progress.
W e have to becom e reconciled to th e
conclusion th a t w e are going to have
to “circu late” m ore and engage in m ore
perso n al solicitation of business. T his
applies p a rtic u la rly to seniors. A lot
of b an k ers say: “W hy, I see th is chap

a n earby tow n for m y wife w hich costs
me a service charge every m onth.
Some n ig h t I w ould like to open m y
fro n t door and see a young fellow
th ere w ho w ould introduce him self as
being from th e local bank. I w ould
like v ery m uch to talk to him on m y
hom e grounds and I th in k he could tell
me a lot of v ery in terestin g th in g s
about banking.
Step up th e sales tem po am ong all
employes. Strive to develop sales
consciousness and a real desire to pro­
m ote th e b est in terests of th e bank.
Obviously, we can’t hope to m ake
salesm en out of every teller and every
bookkeeper, b ut we can do a lot to

freq u en tly in th e bank. I talked to
him to day”; or, “I m et him a t th e
R otary Club”— “—at th e Golf Club”.
B ut th e re is quite a difference in ta lk ­
ing to a m an a t his hom e or place of
business. Two y ears ago, 1 m oved
into a new house. The m oving van
h a d n ’t been in th e drivew ay an h o u r
before I h ad sam ples of m ilk and
cream , a v isit from th e laundrym an,
th e garagem an, and telephone calls
from practically all th e stores in tow n.
E verybody w as try in g to sell me
som ething, b u t I still h av en ’t heard
a n y th in g from th e bank. B ut last
sp ring I borrow ed $700 to purchase a
car and opened a checking account in

Added Income
for

Sales Minded Bankers
M any bankers in sm all and m edium size com m uni­
ties are overlooking an oppo rtu n ity to add to their
incom e th ro u g h the sale of G uarantee M u tu al’s
up-to-the-m inute life insurance service, consisting
of a w ide range of m odern policies, for adults and
children, issued from date of b irth to Age 65. T he
sam e prem ium rates apply to both m ale and fem ale
risks.
G uarantee M utual Life C om pany ranks high am ong
the ou tstan d in g m utual legal reserve com panies of
the U. S. A., w ith a ratio of A ssets to L iabilities
of 112.4 per cent.
C om plete details of our liberal p art-tim e B ankers
A g en t’s co n tract will be furnished upon request.
W rite for particulars.
A . B . O L S O N , A g e n c y V ice P r e s id e n t

»

«
OMAHA,

N EBRA SK A

ORGANIZED 1901

N orthw estern B anker October 19W

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

30
m ake th em sales conscious. W h at are
th ey saying to th e ir neighbors across
th e bridge table? W hen th e ir friends
tell th em th e y are going to b u y a car,
do th e y tra n sla te th a t sta te m e n t into
sales p o ten tialities for th e b an k and
in q u ire w h e th e r th e p u rch asers in ­
te n d to b orrow th e m oney? P erh ap s
you feel th a t th a t is already being
done, b u t I assu re you th a t it can be
done to a m uch g re a te r degree.
A no th er thing, if a gap exists be­
tw een seniors and em ployes—bridge
it so th a t a com m on g ro u n d for dis­

cussion and in stru ctio n m ay be estab­
lished. M aybe th is is a delicate sub­
ject b u t I get into a lot of banks and
see m an y instances w here seniors have
set up a w all ag ain st th e juniors. It
exists in m any m ore places th a n you
realize. You w ould be su rp rised at
th e m any things you can learn w hen
b an k em ployes “take dow n th e ir h a ir”
a fte r a sales m eeting is over and th ey
tell you all about it. These fellows
are th e ones we are try in g to tu rn
into p o tential salesm en and we have
to get close to th em if we are going

Since 1 881
F. E. DAVENPORT & CO.
Has served the B ankers in Tim elock, Safe and Vault In sp ection
•
We are proud of this record and of our relations as the official
experts of The Nebraska Bankers Association
*

Our 24-Hour C ontinuous Service Guarantees
You Im m ediate A tten tio n
*
Distributors of YALE & TOWNE MFG. CO.
Bank Locks and Day Protection Equipment

F. E. D A V E N P O R T & C O .
O M A H A

GREETINGS

to

NEBRASKA BANKERS
ASSOCIATION
W e cordially invite you to
visit our display
of

MONROE ACCOUNTING
MACHINES FOR
BANKS

Municipal
and
General Bonds
★

at

S p ecialists in N ebraska

N ebraska Bankers A ssociation
C onvention

M unicipals

O ctober 24 a n d 25
M ezzanine Floor Hotel Lincoln

Monroe Calculating
Machine Company, Inc.
N orthw estern B anker October 19W

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

★

GREENWAY & CO.
F a r n a m B ld g .
OM AHA, NEBRASKA

to expect th e k ind of loyalty necessary
to do a good selling job. T his is a
v ery im p o rtan t point.
L e t’s become fam iliar w ith costs and
determ ine upon a price list w hich w ill
show a profit and at th e sam e tim e
conform m athem atically to a form ula
w hich can be su pported dow n to the
split penny. I u n d erstan d th a t in
one state the legislature has appointed
a com m ittee to find out th e reason, “if
an y ”, for service charges in banks. I
can im agine th e reaction of some poli­
tician com ing in and in q uiring
w h eth er a service charge is m ade and
being advised th a t th e ban k has th ree
different kinds: th e large accounts
being analyzed; th e medium-size ac­
counts being charged on a m etered
system ; and th e sm all accounts on a
“Pay-As-You-Go” basis. How can three
different prices for th e sam e service
be justified in one in stitution? I don’t
th in k it can be, and I th in k th e tim e
w ill come w hen you are going to be
asked to explain it. U ltim ately, I
th in k we are com ing to th e analysis
plan for all checking accounts. As a
m a tte r of fact, practically all th e price
lists of in d u stry are th e re su lt of analy­
sis, b u t we don’t call it th a t because
th e v ery w ord “analy sis” frig h ten s us
a little since it appears to involve a
lot of ex tra w ork. As far as I know,
no bank w hich has in stalled th e com­
plete analysis system has h ad to add
an y additional em ployes, and one nice
th in g about it is th a t you can prove
definitely to th e public th a t th e m er­
chandise is w o rth th e asking price and
th a t it constitutes th e cheapest form of
m oney w hich can be used. In one re ­
spect, pricing service for checking ac­
counts differ from pricing an indus­
tria l product. You have tw o sources
of income. You can m ake a profit by
ren d erin g service or by loaning funds
left in y o u r care, b u t you don’t w an t
to m ake a profit from both sources on
th e sam e account a t th e sam e time.
So, you are probably going to have to
go to an analysis system if you w ant
a price list th a t can be supported.
Pick out a few “sp ark plugs” from
am ong th e ju n io rs and let th em con­
trib u te to th e sales plans. E v ery sales
program m u st be spark ed and re ­
fueled by som eone and he need n ot al­
w ays be a senior officer either. In
fact, he isn ’t likely to be at th e p resen t
tim e because it is th e younger genera­
tion w hich is sales-m inded and w ants
to b ring in th e sm all business. Sus­
tained selling effort has to exist if th e
selling p rogram is going to continue to
function. N ot along ago a t a ban k
em ployes’ m eeting w hich I attended,
one of th e senior officers becam e en ­
th u sed and offered $100 in prizes for
th e ten b est sales suggestions m ade

31
b y th e em ployes. M any good sugges­
tions w ere received and th e prize
m oney w as p ro m p tly paid, b u t v ery
few of th e suggestions w ere p u t into
effect due to th e fact th a t th e b an k
h a s n ’t a sp ark plug contin u ally p o und­
ing aw ay for action. D on’t let good
suggestions die. Do som ething about
it.
Look over th e m a rk e t w ith in th e
n o rm al tra d e area. T h en m ake in te r­
nal a d ju stm e n ts to accom m odate it.
D ow n in N ew Y ork we h e a r a lot
ab o u t $200,000 balances. In fact, you
h e a r th a t figure m entioned so often
you get th e im pression th a t everybody
m ain tain s a balance of th a t sort. The
tro u b le is, how ever, th a t w e can ’t all
m ove our b an k s to W all S treet and if
our m a rk e t consists of nickel and dim e
business, th a t’s w h a t we have to go
a fte r an d m ake our ad ju stm en ts ac­
cordingly.
R eview th e sales activities of oth er
banks. S ta rt collecting sales ideas and
digest th em a t ro u n d table discussions.
W h en ev er a b an k does som ething good
along sales lines it finds its w ay into
a b an k in g publication, b u t th e re it
becom es som ew hat subm erged am ong
o th e r editorial com m ent. L a st M arch,
sev eral of us re p re se n tin g in d u strial
organizatio n s sat in on a m eeting in
N ew Y ork to ta lk for tw o full days
ab o u t p re p a rin g a sales m an u al for

No Longer An

Experim ent!
T he system

b an k personnel. Am ong o ther things,
we suggested th a t a m o n th ly sales b ul­
letin concerning itself entirely w ith
sales ideas be issued, and I th in k th a t
som etim e th is fall th e sales m anual
w ill be published, w ritte n for th e bene­
fit of b an k employes. Looking at the
p icture as an outsider, we oftentim es
see situ atio n s w hich are quite c o n tra­
dictory and difficult to explain. F o r
exam ple, h e re ’s a b ank w ith $8,000,000
in dem and deposits serving 9,000
checking accounts, and n ot far away,
an o th er b ank w ith exactly th e sam e
deposits serving only 1,500. One ban k
secures over $70,000 in service charge
revenue; th e o th er b an k gets about
$12,000 and because of the fact th a t
both banks are located in tow ns w ith
about th e sam e potentialities we can ’t
help b u t w onder w hy one is serving
its com m unity so w ell and th e other
so poorly.
And, m ost im p o rtan t of all, le t’s get
ourselves th o ro u g h ly sold on th e idea
th a t we are selling one of th e finest
p roducts in th e w orld w hich is defi­
n itely needed by Mr. and Mrs. A m er­
ica. A ccording to th e P etroleum In ­
stitu te, th e average m otorist in th is
c o u n try is 43 y ears old; he m akes be­
tw een $20 and $30 a w eek, and drives
an autom obile w o rth $248, and the
chances are th a t he n ev er ow ned a
new one. H e is typical of th e m ark et

we have to serve. Too often, we who
are close to banking overlook th e fact
th a t our product is one of th e best
bargains th is m an has ever had a
chance to buy. W hen we ourselves
become firm ly convinced th a t w e are
giving th e public a real buy we w o n ’t
have to w o rry a g reat deal about our
sales talk s because our v ery sincerity
w ill generate th e en thusiasm so neces­
sary in m aking th e sales. Nickel and
dime business m ay w ell serve as a
vehicle to carry A m erican banking to
heights it never attain ed before.

Dividend
T he board of directors of M anufac­
tu re rs T ru st Com pany declared th e
reg u lar q u arterly dividend of 50 cents
per share on th e common stock, pay­
able on October 1, 1940, to stockhold­
ers of record on Septem ber 16, 1940.
T he board also declared the reg u lar
q u a rte rly dividend of 50 cents per
share on th e p referred stock, payable
October 15, 1940, to stockholders of
record on October 1, 1940.

12 Men Good and True
She: “Boys, I ’ve been living on the
prom ises old G otrox m ade m e.”
They: “Hmm, do you m ean to say
you believed th em ?”
She: “No, b u t th e ju ry did!”

NATIONAL BANK OF
COMMERCE

of apply in g b u si­

Lincoln, Nebraska

ness p rin cip les to farm m anage­
m ent, in au g u ra te d by us m ore
th a n

10 years

ago, has been

“ T H E B A N K O F E X PE R IE N C E D SE R V IC E ”
(O rganized A ugust 4, 1902)

tested in the cru cib le of tim e.
O ur

steadily

grow ing

lis t

of

clients is the best p ro o f of its
success.

Farmers

W e extend a h earty welcom e to the
1940 A nnual Convention of the Ne­
b rask a Bankers Association here in
Lincoln, O ctober 24-25.

N a tio n a l
C o m p an y
388-396 Brandeis Theatre Bldg.
Omaha, N ebraska

Farm M anagement

OFFICERS
M. WEIL,
P resid e n t
BYRON DÜNN,
E xecutive V ice P resid e n t
& T rust Officer
ALBERT A. HELD,
V ice P resid e n t

D. S. COZAD,
A ss't. C ash ie r

B. G. CLARK,
C a s h ie r a n d A ss is ta n t
T rust Officer

PAUL BOGOTT,
A ss't. C ash ie r

ERNEST C. FOLSOM,
V ice P resid e n t
JULIUS WEIL,
V ice P resid e n t

WM. STRATEMANN,
A ss't. C ash ie r

“From the G round Up”
Member Federal Deposit Insurance Corporation

N orthw estern Banker October 1940

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Federal Reserve Bank of St. Louis

32

*

No. V I I of a Series

Tin1Iowa Investment Hanker... udud d id he
kaue ta da

umÌU 9<uual d in e

koadi?

It is easily w ithin the m em ory of every

interest rate — resulting in

reader when Iow a’s roads were the scorn
of the nation — when tourists purposely
avoided the T all Corn State because of the
uncertainties and hazards of traveling its
roads.

savings of approxim ately 2 p er cent.

All of th at has changed, and today, Iowa
w ith 5,828 miles of paved roads, rightfully
boasts of one of A m erica’s finest highway
systems.

It required m oney—vast am ounts of money
-—to finance Iowa’s road-building program .
W here did the money come from ? The
Investm ent Bankers of Iowa were largely
instrum ental in selling the original $117,968,000 issue of prim ary road bonds —
w hich pulled Iowa out of the m ud and
p u t it on pavement.

Later, the Investm ent Bankers of Iowa
played a prom inent and active p art in
selling $74,228,000 of prim ary road refund­
ing bonds—replacing the bonds of higher

an interest

As evidence of the m agnitude of Iow a’s
highway system are these interesting fig­
ures of income and expenditures for the
fiscal year ending June 30, 1940:
INCOM E: From license fees, $11,209,400;
gasoline taxes, $7,890,000; Federal aid,
$3,079,841—TOTAL, $22,179,241.
EX PEN D ITU R ES: $6,507,000 principal
retirem ent of bonds; $1,988,950 interest
on entire debt; $3,590,582 m aintenance;
$8,263,504 construction work, bridges, u n ­
derpasses, etc.; $1,642,947 farm to m arket
roads; $12,459 to banks for handling pay ­
m ent of principal and interest—-TOTAL,
$22,005,442.
The financing of Iowa’s present, enviable
highway system stands as a practical and
lasting exam ple of the p art the Investm ent
Banking interests of Iowa have played in
th e im provem ent and upbuilding of th eir
own state.

Iowa Investment Bankers Association
N orthw estern B anker October 19W

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

33

The Month’s M arket Maneuvers
The m arkets w ere
better in Sep tem ­
ber. P erhaps im ­
proved d o m e s t i c
b u sin ess accounted
for som e gain s—
but m ore than that,
it w as E n glan d ’s
stand.
A feelin g
th at the w ar w ould
JA M E S H. CLARKE
last a lon g tim e—a
fee lin g th at there w ould he no invasion of Great B ritain th is fall—a b elief
th at our in d u stries w ere actu ally g et­
tin g geared to Avar— all of th ese th in gs
aided sentim en t.
A nd th is d esp ite the continuance of
had neAvs. R eports of severe dam age
to L ondon—and to w ar in du stries
through out the island. The D akar in ­
cident—not en tirely clear y et—hut ap­
parently a B ritish defeat. A nd w ith in
th e last few days th e pact b etw een
G erm any, Italy and Japan w hich
seem s to b rin g the w ar m uch closer.
C ertainly such thin gs are not the m a­
terials th at m ake for hull m arkets.
B u t Ave are gettin g so accustom ed to
had neAvs that the m arkets in S ep tem ­
ber said, “It m ight have been w orse.”

W h ile the via rkets im proved, sto ck­
brokers w ere but m oderately cheered
as the vo lu m e of business rem ained
small. There was one day’s trading
w h ich exceeded a m illion shares on
th e N ew Y o rk Stock E xchange, but
the average day w as closer to fo u r
hundred thousand. A t no tim e w as it
as bad as A u g u st— but n o t m u ch bet­
ter. There w ere tw en ty-fo u r days of
trading in S eptem ber— gains w ere re­
ported th irte e n tim es and losses
eleven. Using the Dow-Jones in d u s­
trial averages fo r a yardstick, the
m a rk e t closed at 128.88 on A u g u st
30th— and 132.62 on Sep tem b er 30th.
A gain of som ew h a t less than four
points. D uring the m o n th there w ere
som e fa irly w ide m a rk e t fluctuations
considering the sm all trading. On Sep­
tem b er 9th the m a rk e t broke 3.04
points follow ing reports of an espe­
cially devastating raid on London.
The volu m e of trading th a t day was
but 590,000 shares. B u t in general the
trend w as better.
Bond prices w ere firm to b e tte r d u r­
ing th e m onth and refu n d in g s w ere
w ell received. The am o u n t of financ­
ing w as sm all, how ever—th e principal
issues being $15,000,000 Dow Chem ical
Com pany 2 %’s of 1950 and $30,000,000

Prepared for
The Northwestern Banker

By James H. Clarke
Assistant Vice President
American National Bank & Trust Co.
Ch ic ago

of S outhern C alifornia Gas Com pany
1st, 3 % ’s of 1970. The Dow Chemicals
w ere priced a t 101V2 and are now quot­
ed about 103. The S outhern C alifornia
Gas bonds w ere offered at 103%, sold
as high as 105%, and are quoted about
1047/s as w e w rite this (Septem ber 30).
The long expected refunding of the
737 m illions of D ecem ber 13, 1940,
T re asu ry notes also w as handled in
Septem ber. T he offering of 2’s due in
1955/53 w as a bit sh o rter th a n the m a r­
k et expected—and th e reception w as
good. The percentage of holdings ex­
changed is n ot available a t this w rit­
ing—you m ay be sure it w as high—the
new bonds com m and about th ree-q u ar­
te rs of a point prem ium . The m atu ­
rity, plus th e low prem ium , helps th e ir
p o p u larity in th is type of a m arket.
The m arket for G overnm ents Avas
good practically all m onth. L ooking
back OA^er offering sh eets indicates
th at the lo n g est 2%’s w ere quoted
106.20 on the bid side as A ugu st ended
—today the bid is around 107.20. A
one p oint gain on top of a m arket
w hich Avas already high is substantial.
It is apparent, how ever, th a t Ave hoav
face a great volu m e of additional G oa>ernm ent financing. A recent estim ate
—one made in A ugu st—in d icates that
in the fiscal year 1940-1941 exp en d i­
tures w ill reach 12 b illio n s of dollars
com pared w ith receip ts of 6.3 m illions.
A nd th ese figures do not in clu d e the
cost of callin g the N ational Guard into
service nor th e draft. On th e other
hand the in creases in ta x es from the
excess profits b ill are n o t included—
but th ese Avill be the sm all com pared
to the outgo.

The m a rket fo r second grade bonds
im proved in Septem ber— the rails hav­
ing the first upw ard m ove recorded in
a long tim e. For instance, N ew Y ork
Central 3%’s of 46 gained five points,
Pere M arquette 4Vz’s of 80 about 2%,
N o rth ern Pacific 4VYs of 2047 approxi­
m a tely 4, P ittsb u rg h & W est Virginia
4VYs of 58 about 6— ju st to m en tio n a

few . B etter earnings, plus a better
outlook— especially for E a stern roads
— is probably the reason for the better
m a rket action.
There are a few prospective bits of
bond financing for October— all re­
fu n d in g s so far. The principal ones are
$18,100,000 of Central M aine Pow er
Com pany 1st 3%’s of 1970, $20,000,000
of Colum bus & Sou th ern Ohio E lectric
Co. 1st 3 W s of 1970, and $16,500,000
San A ntonio Public Service 1st 3%s of
1970. I f the w ar does not u p set the
m a rket there m a y be m ore as there are
lots of deals in w ork.
So m uch for a general view of the
stock and bond m arkets. L et’s take a
quick look a t business. A lthough th e
figure is not y et available—it is quite
likely th a t th e F ed eral R eserve Index
of In d u stria l P roduction w as about
126 in Septem ber. In A ugust it w as
123—th e tre n d has been upw ard w ith ­
out in te rru p tio n since spring. Steel
production is about 94 p er cent of ca­
pacity-—w hich from a practical stan d ­
point is about top. A utom obile p ro ­
duction w ill reach 100,000 u n its th is
w eek—unem ploym ent is th e low est
since 1937. The railroads look for an
average 7 p er cent increase in loadings
for th e final 1940 q u arter. It is esti­
m ated th a t th e shortage of skilled m en
in in d u stry totals 1,260,000—m aking
for a bottleneck in our defense p ro ­
gram . These are b u t a few item s—
selected at random —to enable one to
visualize th e im provem ent w hich is
tak in g place.
T h e sto c k m a rk et, liOAAever, vieAvs
a ll th is w ith ca u tio n . E v e r y in v e s to r
in sto c k s h a s tAvo p r o b le m s— first, h o w
s e v e r e Avill th e ta x b ill b e w h ic h is
w r itte n in 1941 b y th e n e w c o n g r e ss.
T h e b ill noAA' b e in g p a sse d is not so
se r io u s. S eco n d , if AAre g e t in to th e
Avar, w h a t th en ? In E n g la n d th e co r­
p o ra te ta x o n p rofits is 4 2/4 p e r c en t
r e g u la r p lu s 100 p e r c e n t on a n y e x ­
c e ss.
S u ch ta x e s m a y n o t be se e n
h e r e — o u rs is n o t a p r e c ise p a r a lle l—
b u t c e r ta in it is th a t ta x e s m u s t be
fig u red c a r e fu lly in e stim a te s o f e a rn ­
in g s . T h e b u y e r s o f b o n d s h a v e m u ch
le s s to w o r r y th e m — c u r r e n tly w ith
m o n e y a b u n d a n t, n o th in g b u t w a r
sh o c k s th r e a te n . F ro m th e lo n g e r
r a n g e sta n d p o in t th e r e w ill be th e in ­
c r e a se d G o v e r n m e n t fin a n cin g to s e ­
r io u s ly co n sid e r . T h e o u tlo o k fo r b u s i­
n e s s AAitli Avar a s th e sp a rk p lu g is
g o o d — th e d a y o f r e c k o n in g is a p p ar­
e n tly so m e tim e off.

N orthw estern Banker October 19k-0

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Federal Reserve Bank of St. Louis

34

SO U TH D A K O T A
(C ontinued from page 23)
I t provided for th e v o lu n ta ry ex­
change for existing bonds of longer
term bonds b earin g th e sam e in te re st
rate as th e existing bonds w ith a 3
p er cent ra te th e re a fte r u n til th e m a­
tu rity of th e new bonds. T his is th e
low est ra te at w hich South D akota
bonds of com parable m a tu ritie s w ere
ever issued.
A large group of re p re se n ta tiv e
ban k ers and in v estm en t dealers co­
operated w ith th e officials of th e state,
th e m an agem ent group and th e fiscal
agent in p resen tin g th e p lan to hold­

ers of the bonds. These holders saw
th e advantage to them of th e arra n g e ­
m en t and $14,424,000 of th e outstanding
bonds w ere extended.
T he v ery able d irector of R ural
Credits, M illard G. Scott, announced
in his last an n u al re p o rt th a t th e plan
had succeeded; th a t the state now had
th e m oney to pay th e n ex t m atu rin g
bonds, and th a t th e state could pay the
rem ain in g m aturities, in his opinion,
w ith o u t fu rth e r refunding.
Moody’s Inv esto rs Service, recogniz­
ing th e changed relationships of th e
R u ral C redit bonds, raised th e ra tin g
of all bonds of th e state of South Da­
ko ta to an “A” rating. T he bonds of

is engaged primarily in facilitating wholesale distribution
and retail sales of the following products of General
M otors C o rp o ratio n and its w o rld 'w id e affilia te s:
CADILLAC, LA SA LLE, B U IC K , OLDSM OBILE, PO N T IA C ,

automobiles; f r ig id a ir e appliances for refrig'
eration and air conditioning; d e l c o lighting, power and
heating equipment; GMC trucks; BEDFORD, VAUXHALL
and other foreign made automotive vehicles.
Ch e v r o l e t

The business consists of investments in self'liquidating
credits, widely diversified as to region and enterprise,
capital em ployed being in excess of $80,000,000.
In obtaining short term accommodation, g m a c issues
one standard form of note. This obligation it offers to
banks and institutions, in convenient maturities
and denominations at current discount rates.

GENERAL
MOTORS
INSTALMENT

P L A N
These

NOTES

are available, in limited amounts,
upon request.

EXECUTIVE OFFICE
N E W YORK

N orthw estern B anker October 19^0

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Federal Reserve Bank of St. Louis

BRANCHES
IN PRINCIPAL CITIES

th e state are now eligible for tr u s t
funds and savings b an k in v estm en ts
in all states.
W ith th e refu n d in g w ork com pleted,
D irector Scott has p u t all th e energy
of his d ep artm en t in th e fu rth e r
liquidation of th e departm ent, includ­
ing th e sale of lands, leasing th e farm s
and ranches, th e collection of principal
and in terest due on th e m ortgages an d
contracts, and has now sta rte d to sell
th e m ortgages w hich belong to th e
board. The figures on page 23 are con­
clusive, leaving no doubt as to th e
p resen t efficient m anagem ent of th is
d ep artm en t and its ability to c arry
out the five-year program .
Over fifteen h u n d red tra c ts w ere
sold last y e a r for a total am ount of
$2,477,174.54. T his w as 20 p ercent of
the land held. The sales for th e m ost
p a rt w ere m ade to real farm ers w ho
are occupying th e land. Surely th is
is a w holesom e th in g for th e well-be­
ing of South D akota. A n other 20 p er­
cent w ill be sold th is year and fu rth e r
reduction of the R u ral C redit person­
nel w ill be possible.
The affairs of th e R u ral C redit De­
partm en t, as w ell as o th er d ep art­
m ents of the state, have been con­
ducted in th e open w ith th e fullest
type of publicity. T h at th e people of
th e state approve of th e sound busi­
ness adm in istratio n of G overnor Bushfield and his associates, is show n by
th e re tu rn s of th e p rim a ry election.
N ot only w as th ere a su b stan tial in ­
crease in th e R epublican vote cast b u t
G overnor B ushfield received 78.4 p e r­
cent of th a t vote. T he Gallup polls
indicate no doubt about th e approval
of these policies in th e fall election.
N one of th e sources of tax incom e
of th e state are pledged. More th an
$150,000,000 has been spent for h igh­
w ay purposes. T here are no highw ay
bonds outstanding. E ven th e m ag­
nificent free bridges th e state bu ilt
across th e M issouri riv e r are debt
free.
The Cem ent P la n t n ot only has
earned enough to fu rn ish sufficient
sinking funds to re tire th e debt w hich
w as in cu rred to build it, b u t th is
y e a r’s earnings have been tu rn e d over
to th e sta te ’s general fund.
T here are m any significant things
th a t point to an im provem ent in th e
general business conditions in South
Dakota.
B ank deposits of F ed eral R eserve
m em bers increased 8.65 p er cent in
th e district. South D akota m em ber
deposits increased 13.18 p er cent.
T here w ere no b ank failures in the
state du rin g the last year. New car
reg istratio n s increased 13.33 p er cent
th ro u g h o u t th e district. In South Da­
kota th ey increased 25.29 p er cent.

A T TH E IO W A

IN V E S T M E N T B A N K E R S F IE L D D A Y

A m ong th o se a tte n d in g th e re c e n t a n n u a l field d a y of th e Iow a
In v e s tm e n t B a n k e rs A s so c ia tio n w ere, re a d in g fro m le f t to
r ig h t: 1— Tom L andstorfer, Gene K lieb en stein , a n d D. Stebbins,
a ll o f P o lk -P e te rs o n C o rp o ra tio n , D es M oines. 2— Elmore Song,
G oldm an Sachs, C hicago; B ill Ingham , D es M oin es; Bob W atland, B ly th & C om pany, C hicago (a b o v e ); George M artin, M a r­
tin B u rn s C o rb e tt, C h icago; a n d Bob M cCrary, M urdoch, D e a rth
& W h ite , D es M oines. 3— George M. W hite, M urdoch, D e a rth
& W h ite , S t. L o u is; R. W. M errym an a n d E arl R yan, se c u ritie s
d e p a rtm e n t, D es M oin es; W alter V ieth , D a v e n p o rt; Homer G.
K aupp, D es M oines, a n d E rling Larson, D a v e n p o rt. 4— George
P eterson, P o lk -P e te rs o n , D es M oin es; Ira W right, C e n tra l N a ­
tio n a l B a n k , D es M oines; E d Lynch, J . M. D a in C om pany,

Sales tax es produce m ore rev en u e be­
cause th e sales are higher. Gasoline
ta x receipts, incom e ta x receipts,
stam p ta x receipts all show su b stan tial
increases. T h ere has been a m ark ed
red u ctio n in th e foreclosure of R u ral
C redit farm s. T o u rist trav el, aided
doubtless by th e n atio n al ad v ertisin g
cam paign, sponsored by th e state, in ­
creased an estim ated 100,000,000 tra v e l
m iles d u rin g th e first eig h t m o n th s of
th is year. The hig h w ay officials re ­
p o rt th a t th ese to u rists w ill spend
$40,000,000 in th e state in 1940. T hese
estim ates are su p p o rted by electric

M in n e a p o lis; a n d Raym ond R eis, P o lk -P e te rs o n , D es M oines.
5— H arry Brown, C hicago; L. A. Wood, V ie th D u n c an & W ood,
D es M oin es; a n d Frank W arden, C e n tra l N a tio n a l B a n k , D es
M oines.
6— W. Y. Cleveland, L. H. Flow er, a n d K en neth
H enkle, a ll o f Des M oin es; a n d L es B oeder a n d Fred Shannon,
W aterlo o . 7— Red K auffm an, Illin o is C om pany, C hicago; Zach
W arren, W ach ob, B e n d er C om pany, O m aha; Elm er H assm an,
L a z a rd F re re s, C hicago; M orrie M axw ell, C hicago; a n d H arold
K lein, Iow a-D es M oines N a tio n a l B a n k , D es M oin es; 8— W alter
and John Pyper, C ouncil B luffs; Jack Shugart, B u rn s-P o tte rO m ah a; M. J. Barlow , C a rle to n D. B eh C om pany, D es M oin es;
N. H. P eterson, C a rle to n D. B eh C om pany, D es M oin es; and
H. N. Rogers, D es M oines.

eye counts tak en by th e State H igh­
w ay P lan n in g Survey.
The Federal-State A g ricultural S tat­
istician reports, as of Septem ber 1st,
1940, a re tu rn to m ore n early norm al
w ea th er conditions, the best corn
prospects since 1929, corn, w heat, oats,
barley, flax, hay and sorgum crops
above th e ten y ear average, and th a t
farm incom e from all sources for the
first half of th e y ear 1940 w as $62,956,000 against $51,727,000 for th e sam e
period in 1939 and $48,607,000 in 1938.
South D akota has its financial prob­
lem s w ell in hand. The state operates

on a pay-as-you-go basis. No deficit
financing is needed or done. A spec­
tacu lar reduction of th e sta te ’s debt of
m ore th a n $25,000,000 w ill be fu rth e r
enhanced by th e p aym ent of $1,858,000
of R ural C redit bonds th is year, th e
Cem ent Bonds and Soldier Bonus
bonds as soon as th ey can be paid, and
fu rth e r an n u al reductions in th e R ural
Credit debt.
T he people of th e state look forw ard
to the day w hen th ey can join w ith
th e citizens of th e sister state of Ne­
b rask a and say: “T his state has no
debt.”
N orthw estern Banker October 19W


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Federal Reserve Bank of St. Louis

36
stated to be based upon past earnings.
S tatem en ts as to accum ulations, d iv i­
dends, surplus, etc., m ade in the sale
of a n n u ities as m ere illustration s or
estim ates are to be treated as such and
th eir su b seq u en tly proved inaccuracy
is no ground for a rescission of the
an n u ity contract.

IOWA
Investm ent Bankers
Association

W ALTER E. Y IE T H
President
Davenport

Organized 1935

B IGGER and b e tte r th a n ever de­
scribes the an n u al F ield Day of
th e Iow a In v estm en t B ankers A ssocia­
tion, held at th e W akonda Club in Des
Moines on Septem ber 11. Two h u n ­
dred in v estm en t b an k ers from Iow a
and th e larg er cities in su rro u n d in g
states spent an afternoon and evening
w hich th ey w ill long rem em ber as a
m ost enjoyable one.
Top w in n ers in th e an n u al golf to u r­
nam en t w ere Tom Crabbe, Cedar R ap­
ids, w ho took th e blind bogey, and Bill
Sm ith w ho shot a low gross of 76.
O ther w inners, in th e ord er of th e ir
skill, w ere Jim Cum m ins, L ehm ann
Plum m er, W. E. Lang, F ra n k W arden,
F red Shannon, C. R. Perrigow , and
E rn e st Kosek.
In th e ten n is doubles, Jo h n Seerley
and Vic Z ehner w alked aw ay w ith th e
honors, w hile R ussell K napp w as the
singles cham p. Sw eepstakes w in n er in
the draw ing follow ing th e b an q u et was
Rae L auder.
Follow ing th e aw ard in g of golf
prizes, e n te rta in m e n t w as provided by

ROY W. L ER IC H E
Secretary
Des Moines

B ert H enderson and A rth u r B rayton,
Des M oines C ham ber of Commerce,
consisting in a clever sk it p u rp o rtin g
to be a conversation betw een th e two
p resid ential candidates, M essrs. Willkie and Roosevelt, conducted by re ­
m ote control, and v ery realistic. Mr.
B rayton later personally distrib u ted
th e m any attendance prizes, and his
clever im prom ptu ru n n in g ¡fire of
w ords as each prize w as handed to the
w in n ers w as one of the high spots
of th e evening.
P ictu red in th is issue are a num ber
of those who helped to m ake th is 1940
F ield Day th e success it was.

L E G A L DEPARTMENT
(C ontinued from page 16)
No. T hat the p urchaser of an an nu ­
ity from an in surance com pany has
been disappointed in h is exp ectation s
as to the am ount of dividends, raised
by figures sh ow n him by the insurance
com p any’s agent at the tim e of sellin g
him the an nu ity, does not en title him
to rescind, w h ere such figures are

Fed eral D iscount C orporation
D ubuque, Iowa

A U T O M O B IL E

F IN A N C E

T im e P a y m e n t P lans fo r
P urchasers o f A u to m o b ile s and H o u seh o ld A p p lia n ces
m m m
SMALL LOANS
■ * ■
B ra n ch es in Iow a— M in n esota— W isco n sin

C apital, Surplus and U ndivided Profits
Exceed One M illion Dollars
■ ■ ■

S h ort T erm C ollateral T rust N otes
In fo r m a tio n on R e q u e st
N orthw estern B anker October 1940

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Federal Reserve Bank of St. Louis

Green delivered to L anger a key to
his safe deposit box and retain ed for
him self a duplicate key w ith the in ten ­
tion th ereb y to p reserve his dom inion
and control over th e contents of the
box. Did th is co nstitute a gift of the
contents?
No. A delivery of a k ey to a safe
deposit box or other receptacle is not a
sufficient d eliv ery to consum m ate a
gift of the con ten ts w here the donor
retains a duplicate k ey or other m eans
of access thereto w ith the in ten tion
thereby to preserve h is dom inion and
control over su ch con ten ts.
A V irginia bank took in u n d er a fore­
closure a hom e th a t w as located in a
neighborhood developed u n d er a gen­
eral schem e w hich w as subject to re ­
strictive covenants req u irin g th a t the
land or buildings th ereo n be used only
for residential purposes and not in any
m an n er th a t w ould create a nuisance
or m ake th e prem ises in ju rio u s or
offensive to a good residential neigh­
borhood. S hortly th e re a fter th e ban k
sold th e prem ises to Maxwell who
sought to establish a to u rist home
there. Could M axwell do this?
No. The conduct of a tou rist hom e
in a house in a resid en tial district
w ould co n stitu te a b u sin ess and is in
violation of covenan ts restrictin g the
use of the p rem ises to resid en tial pur­
poses only. A tou rist hom e is lik e a
boarding house and is not a private
residence.
The State of M ississipp i levied an ad
valorem ta x on N ational B ank Stock.
T h ereafter it sought to im pose an in ­
come ta x on th e dividends accruing
therefrom . By federal sta tu te th e ta x ­
ation of stockholders of N ational
B anks is re stricted to an y one k ind of
tax. In view of this, w as it possible to
enforce th e second tax on th e stock;
nam ely, th e incom e tax?
No. Since the M ississipp i legislature
im posed an ad valorem ta x on shares
of N ational B ank Stock, it w as pre­
cluded under federal statu tes from also
im posing an incom e tax on the divi­
dends from such sh ares of stock.

Declare Divide nd
T he reg u lar q u a rte rly dividend of
45 cents p er share on th e capital stock
of the Chem ical B ank & T ru st Com­
pany has been declared, payable Oc­
tober 1, 1940, to stockholders of record
Septem ber 17, 1940.

37

Bank Women Officers

New Officers for Western Mutual Fire
C H A R LES S. VANCE, Des Moines,
has been elected p resid en t of th e
W estern M utual F ire In su ran ce Co. of
Des Moines. Mr. Vance, w ho w ill take
office October 1, succeeds David 0. Mil­
ligan, w ho resigned A ugust 16.
The board of directors of th e com-

CHAS. S. V A N C E
President

rein su red several y ears ago by the
F irem en ’s In surance Co. of N ew ark,
N ew Jersey.
Mr. K ent, who has been acting p resi­
dent of th e W estern M utual com pany
since D. O. M illigan resigned, w ill be
an active executive in th e new post of
board chairm an, it w as announced.
Mr. K ent is p resident of th e In land
M illing Co. and th e Des Moines E lev a­
to r Co. He also is a director of W estern
M utual and w ill continue as its tre a s­
urer.
W estern M utual w rites fire, tornado
and autom obile insurance.

A t th e an n u al m eting of th e Asso­
ciation of B ank W om en, held during
the eig hteenth an n u al convention at
A tlantic City, New Jersey, Septem ber
19-21, th e follow ing officers w ere
elected to serve for 1940-41:
P resident, Miss E m m a E. Claus, Sec­
retary -T reasu rer, D irector and T ru st
Officer, B ankers T ru st Company, Gary,
Indiana; vice president, Miss E lizabeth
S. Grover, M anager, W om en’s D epart­
m ent, Forty-second S treet B ranch,
Chase N ational B ank of New York;
recording secretary, Miss G ertrude
G reenw ald, A ssistant S ecretary and
A ssistant T reasurer, B ankers T ru st
Company, Gary, Indiana; correspond-

J. D O L L IV E R K E N T
Chairman and Treasurer

pany also an nounced th a t J. D olliver
K ent, Des Moines, w as elected ch a ir­
m an of th e board.
J. M. P ip e r of Cedar Rapids, p re si­
d en t of th e P ip er G rain & M illing Co.,
w as elected vice p resid en t to succeed
F. D. M illigan, Jefferson, Iowa. G. S.

$

f2 s U

9

m

e

¿ U

a n i- te A

F u x e d im

m

e ^ U

for Banks and Corporations
Federal intermediate credit bank consolidated debentures
are the joint and several obligations of the 12 banks. They,
are issued in maturities of from 3 to 12 months.
They are exempt from all Federal, State and local taxes.
Maturities up to 6 months are eligible for purchase by the
Federal reserve banks and are acceptable as collateral for
15 -day loans to member banks.
J. M. P IP E R
V ice P resident

G. S. B L O U N T
Secretary

Blount, Des Moines, w as re-elected sec­
retary .
Mr. Vance is p resid en t of th e Iowa
Hom e O w ners M utual In su ran ce as­
sociation and is a fo rm er p resid en t of
the Iow a N ational F ire In su ran ce Co.,
of Des Moines. The Iow a N ational w as

Over-Counter Facilities
in All Markets
Primary Markets in Iowa
Securities

McGUIRE, WELCH & CO.

Consolidated debentures are legal investments for savings
banks, insurance companies and trust funds in various
States, including New Tork.
Federal intermediate credit bank consolidated debentures
are eligible as security for all fiduciary, trust and public
funds held under the authority or control of the Federal
Government and are approved as security for the deposit
of postal savings funds.
. . . Debentures are offered through recognized
security dealers and dealer banks. Inquiries should
be addressed to the Fiscal Agent or to dealers.

Charles R. Dunn, Fiscal Agent

31 Nassau Street
THE

New York, N. Y,

F E D E R A L IN T E R M E D IA T E

C R E D IT B A N K S

231 So. LaSalle
CH ICAGO

Bankers Trust Bldg.
D ES M OINES

Springfield, Mass.
Baltimore, Md.
Columbia, S. C.
Louisville, Ky.

New Orleans, La.
St. Louis, Mo.
St. Paul, M inn.
Omaha, Neb.

W ichita, Kan.
Houston, Tex.
Berkeley, Cal.
Spokane, Wash.

N orthw estern Banker October 1940

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

38

Shaw, McDermott
&WSparks
1 I ......INCORPORATED
1 ..... —— ^
Investment- Securities

Regional Vice Presidents

□
Suitable for Investm ent of B anks,
Institutions and T ru st F unds
□

307 E quitable Bldg.
DES

Phone 3-6119

MOINES,

I OWA

BONDS
Public Utility

R a ilroad
M unicipal
L L Y N

and

co m pan y

Incorporated
1 0 0 W e s t M o n r o e S t r e e t , C h ic a g o
N ew Y ork
R e p r e se n ta tiv e s:

M ilw a u k e e
W a te r lo o

O m aha

B o sto n

D e s M o in e s

V. W . B r e w e r
M

u n ic ip a l

Lake, Miss E th e l Groves, A cting
Cashier, D irector, B roadw ay B ank of
Quincy, Quincy, Illinois; m iddle A t­
lantic, Miss H ilda M. Hoffman, S tatis­
tician, B ow ery Savings Bank, New
York, New York; mid-west, Miss E th el
E. Mellor, M anager, W om en’s D epart­
m ent, Om aha N ational Bank, Omaha,
N ebraska; N ew E ngland, Miss E liza­
b eth T hackara, M anager, W om en’s De­
p artm en t, M erchants N ational B ank of
Boston, Boston, M assachusetts; n o rth ­
w estern, Miss C hrissy L. M iller, M an­
ager, Escrow , Collection and E xchange
D epartm ents, W ashingto n T ru st Com­
pany, Spokane, W ashington; southern,
Mrs. Genevieve M. B arn ett, A lternate
A ssistant F ederal R eserve Agent, F ed ­
eral R eserve B ank of A tlanta, A tlanta,
Georgia; southw estern, Miss G ertrude
S. Cham bers,
A ssistan t Secretary,
G uardian T ru st Company, H ouston,
Texas; w estern, Mrs. Zillah M. Pirie,
Safe D eposit Supervisor, C alifornia
Bank, Los Angeles, California.

New York Office

In dustrial

A.C.A

ing secretary, Miss G ertrude M. Jac­
obs, A ssistan t Cashier, M arshall and
Ilsley Bank, M ilwaukee, W isconsin;
T reasu rer, Miss A nne E. F ry er, P e r­
sonnel D epartm ent, Rhode Island Hos­
p ital T ru st Company, Providence,
Rhode Island.

B

C e d a r R a p id s

Co .

o n d s

South Dakota Soldier Bonus and Cement Bonds will be paid
without refunding and in the opinion of the officials no further
refunding will be necessary for the Rural Credit Bonds.

The In v estm en t B ankers Associa­
tion of A m erica has established a New
Y ork office for th e use of th e com­
m ittee th a t is supervising its recently
in au g u rated public inform ation pro­
gram , it w as announced th ro u g h the
n ational h e ad q u arters of th e associa­
tion in Chicago. E m m ett F. Connely,
presid en t of th e association, and also
ch airm an of th e public inform ation
com m ittee, w ill d irect its operations
from the New Y ork office, w hich is
located at 400 M adison Avenue. The
public inform ation com m ittee has re ­
tained th e public relatio n s firm of
Jam es P. Selvage and F re d Sm ith of
N ew York as counsel, it w as also an ­
nounced.

Dividend
The 171st consecutive q u a rte rly divi­
dend w as declared at th e reg u lar m eet­
ing of th e board of directors of The
N o rth ern T ru st Company, Chicago, on
Septem ber 17. The dividend am ounts
to $4.50.

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

MINNEAPOLIS
'Northwestern B anker October 19W

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

“My husband refused to go back to
w ork.”
“It m u st have been a terrib le shock.”
“Yes, h e’s an electrician.”

39

N EBRA SKA
IN V E S T M E N T

BA N KERS

A S S O C IA T IO N

HOWARD BUFFET
President
Omaha

CECIL W. SLOCUM

A LU E of th e estate of G ottlieb
Storz, pioneer O m aha brew er, w as
placed a t $3,548,068.47 for state in h e ri­
tan ce ta x purposes in a finding by
H en ry F. M eyers, county co u rt ap ­
praiser.
The estate w as listed as follows:
Stocks, $3,063,168.33; bonds, $89,606.52; real estate, $42,000; cash, $234,675.34; insurance, $54,970.75; bills receiv­
able, $59,847.53; m iscellaneous, $3,800.
V alue of th e stock of th e Storz
b re w e ry w as given as $2,348,100; of
th e In d ep en d en t R ealty Company,
w h ich Mr. Storz owned, $523,000. In
addition, it w as disclosed he h ad $120,800 w o rth of stock of th e EggerssO’F ly n g Co., Om aha box m a n u fa c tu r­
ers; $30,275 in stock of th e F irs t N a­
tio n al B ank of S tu art, Neb.; $23,981 in
N o rth w e ste rn Life In su ran ce Com­
p an y stock, and $9,900 of U nion Stock
Y ards Co. of O m aha stock.

V

R ecent p etitio n of sm all loan com ­
panies ag ain st w hich A tto rn ey G eneral
W alter Jo h n so n of N ebraska had
b ro u g h t o u ster action, for rem oval of
th e case from state to federal court
w as follow ed by a m otion in federal
co u rt by A ssistan t A tto rn ey G eneral
R obert A. N elson, asking th e case be
re tu rn e d to state court.
T he m otion alleged th e su it should
be rem an d ed to sta te co u rt because
th e re w as no d iv ersity of citizenship,
th a t it w as an action to abate a n u i­
sance, th a t a N ashville, Tenn., firm w as
ow ner an d o p erato r of th e com panies.
F o u r com panies, all w ith Om aha of­
fices, w ere involved in th e litigation.
The p etitio n of th e loan firm s asking
rem oval to federal co u rt w as filed by
th e K ennedy, H olland, De Lacy and
Svoboda law firm and A tto rn ey Jo h n
L. Chew of Omaha. T he p etitio n al­
leged d iv ersity of citizenship, denied
th e N ashville concern o perated an y
of th e Om aha concerns involved.
R etu rn in g recen tly from Tepee
Lodge ran ch 18 m iles n o rth of S h eri­
dan, W yo., w ere Mr. and Mrs. A. C.

“d ark h o rse” candidates for th e post
failed w hen no o ther nam es w ere
offered in nom ination.

New Director
D aniel P eterk in , Jr., has been
elected a director of th e A m erican
N ational B ank and T ru st Com pany of
Chicago succeeding H arold E. F o re­
m an, w ho resigned; recently.
Mr.
P e te rk in is vice p resid en t and director
of th e M orton Salt Com pany and is
also director of H ow ard A ircraft Cor­
poration and Chicago A viation Cor­
poration.

Secretary

P otter and son, Tony Boalt.

The P o t­
te rs sp en t four w eeks on th e ranch.
Mr. P o tte r is head of th e B urns-P otter
Co., of Om aha and Lincoln.
Mr. and Mrs. L eslie E. M artin, th e ir
daughter, Miss Jean, and Mr. M artin ’s
m other, Mrs. J. R. M artin of Crawfordsville, Ind., recen tly m otored to
E stes P ark , Colo., for a stay of th ree
w eeks. A recen t guest of Miss M artin
in Om aha w as Miss B etty Duggleby,
of Spencer, Iowa. T he young w om en
w ere room m ates at G rinnell college
d u rin g th e sophom ore year.

W hile Mrs. Cecil W . Slocum , w ife of
th e Omaha in v estm en t b an k er w ho is
secretary of th e N ebraska In v estm en t
B an k ers’ A ssociation, w as in Chicago
for th ree w eeks recently, she studied
voice w ith Mrs. M aude G utzm er, for­
m er Om ahan, a t the Chicago Musical
College, and attended m any concerts.
B efore retu rn in g , Mrs. Slocum, the
fo rm er M ildred Gibson, appeared in a
recital a t th e G utzm er studio.
A n autom atic farm lease, designed
to give re n te rs g re a te r secu rity of
ten u re, w ill be offered to te n an ts on
N ebraska farm s now in th e hands of
th e F ed eral L and B ank of Omaha, ac­
cording to a plan outlined recently by
P re sid en t C harles M cC um sey of the
bank.
The lease provides for autom atic re ­
new al from y ear to year unless w ritte n
notice of term in atio n is given by eith er
p a rty on or before Nov. 1. The plan
w as approved a t th e A ugust m eeting
of th e F a rm C redit Board.
W alter R. R oberts of W ahoo, Neb.,
se c retary -treasu rer of th e Saunders
C ounty F a rm L oan A ssociation, w as
elected N ebraska d ep artm en t com­
m an der of th e A m erican Legion a t the
close of th e recen t state convention a t
Norfolk.
H is only opponent w as Dr. H. E.
Tagg of Schuyler. T he cam paign of
Lloyd K ain of L exington to ro u n d up

Statement Filed
A reg istratio n statem en t w as filed
S eptem ber 12 for $1,500,000 of M er­
ch an ts and M anufacturers debentures
and 30,000 shares of dom estic finance
com m on stock. D ebentures 4%s of
’50, w ill be priced a t 101, w ill c arry
w a rra n ts u n d er term s of w hich do­
m estic finance stock m ay be purchased.
The tran sactio n is th ro u g h th e Sm ith
B u rris Com pany of Chicago.
The M erchants and M anufacturers
is th e holding com pany and th e issue
w ill have th e double appeal of fixed
incom e from a senior security, along
w ith possibility of capital gain th ro u g h
the attached w a rra n ts for dom estic
finance stock.

L

a

m

s

o

n

B

r

o

s

.

& Go.
E s t a b l i s h e d 1874

141 W. Jackson Blvd., Chicago
50 Broadway, New York
Our b ra n ch o ffic e s are
equipped to render com ­
p le te b ro k era g e serv ice
in th e handling of grain
(cash and futures),
stocks, bonds, cotton and
provisions. Private wires
direct to all m arkets.
BRANCH OFFICES
N e w Y ork, N . Y .
B uffalo, N . Y.
Cedar R a p id s, Iow a
D a ven p o rt, Iow a
D e s M oin es, Io w a
D ubuque, Iow a
F o rt D odge, Iow a
io w a F alls, Iow a
M arsh alltow n , Iow a
M ason C ity , Iow a
Siou x C ity , Iow a
S torm L a k e, Iow a
W aterloo, Iow a
F ran kfort, Ind.
L a F a y e tte , Ind.

M in n eapolis, M inn.
S t. P au l, M inn.
K ansas C ity , M o.
S t. L o u is, M o.
O m aha, N eb.
L incoln, N eb.
B loom in gton , 111.
D e K a lb . III.
G ilm an, III.
G alesburg. 111.
La S a lle. 111.
P eoria, 111.
Q uin cy, 111.
M uskogee, O kla.

M EM BERS OF LEADING SECURITY
a n d C OM M O DITY EXCH ANGES

N orthw estern B anker October 1940

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

40

L IV E S T O C K
is
T h e O n ly E c o n o m i c a l M a r k e t fo r R o u g h a g e
We are especially equipped an d located to serve banks,
producers and feeders in financing livestock.

Stock Yards National Bank o£ South Omaha
O M AHA, N E B R A SK A

MEMBER

N orthw estern B anker October 1940

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

FEDERAL DEPOSIT INSURANCE CORPORATION

41

NEBRASKA
NEWS
C. C. NEUM ANN
President
Oakland

WM, B. H U G H E S
Secretary
Omaha

Continental National Stock Purchased
From Bancorporation
N E of th e m ost im p o rta n t events
in b an k in g circles of th e Middle
W est took place last m o n th in L in ­
coln, N ebraska, w h ere it w as a n ­
nounced th a t th e en tire in te re st of th e
N o rth w est B ancorporation in the cap­
ital stock of th e C ontinental N ational
B ank of L incoln has been purch ased
by th e officers and d irecto rs of the
b a n k and a group of b u siness asso­
ciates in Lincoln.

O

T his an n o u n cem en t w as m ade by
T. B. S train, p resid en t of th e Con­
tin e n ta l N ational B ank, w ho also
sta te d th a t th e change in ow nership,
m ak in g th e b an k a hom e-ow ned bank,
w ill n o t m ean any change e ith e r in
officers or personnel. The b an k is
capitalized a t $634,000, of w hich $350,000 is com m on stock and $284,000 p re ­
ferred stock. T he N o rth w est Banco rp o ratio n held 3,395 of th e o u tsta n d ­
in g 3,500 sh ares of com m on stock, and
th e o th er 105 sh ares w ere held by di­
recto rs as qualifying shares. In th e
official an n o u n cem en t released by th e
bank, P re sid e n t S train pointed out
th a t
“A fter a peroid of eleven y e a rs ’ affil­
iatio n w ith The N o rth w est B ancorpo­
ratio n , one of th e stro n g est G roup
B ank o rganizations in th e m iddle and
no rth w est, T he C ontinental N ational
B ank of L incoln announces th a t th e
directo rs and officers of th e b an k and
a group of re p re se n ta tiv e Lincoln busines m en have p u rch ased th e en tire in ­
te re s t of T he N o rth w est B ancorpora­
tion in th e capital stock of th e bank.
“K eeping in step w ith th e g eneral
up w ard tre n d of b u siness in o u r city,
deposits in th e C ontinental N ational
B ank have in creased from $5,042,484
on D ecem ber 31, 1929, to $11,317,770
on Ju n e 29, 1940, an indication of th e
reg ard an d confidence w hich our p a­
tro n s and frien d s have had for our
sound an d conservative m an agem ent

and our constructive particip atio n in
th e developm ent and financial w elfare
of Lincoln and N ebraska.”
The C ontinental N ational B ank is 31
y ears of age, and w as originally
founded in 1909 as th e German-American State Bank, w hich nam e w as
changed in 1918 to th e C ontinental
State Bank. It w as nationalized in
June, 1929, and in th a t y ear joined
the N orthw est B ancorporation.
The b an k rep o rts th a t th e announce-

T. B. S T R A IN

rnent of its purchase of stock, m aking
it hom e-owned and controlled, has m et
w ith w idespread approval th ro u g h o u t
its te rrito ry . In com m enting on th e
change, th e L incoln local new spaper
m ade th e follow ing editorial comment:
“Mr. S train, th e b anking staff, the
officials and th e directors are to be con­
g ra tu lated m ost h eartily upon th e im ­
p ressive record th a t has been w ritten .
It is o u tstan d in g in a ch ap ter of b an k ­
ing as b rillia n t from th e standpoint

of good m anagem ent, steady grow th,
stability and stre n g th as any in the
h istory of banking.
“The N orthw est B ancorporation p e r­
form ed a d istinct b an king service in
this state and th e tra n sfe r of its ow n­
ership of stock calls to public a tte n ­
tion the excellent m anagem ent w hich
it developed, and w hich w ill continue
in th e sam e role.”
The C ontinental N ational Bank, ac­
cording to its figures of Ju n e 29, 1940,
has deposits of $11,317,770.64, w ith
su rplus of $128,000 and undivided
profits and reserves of $126,437.71. It
has loans and discounts of $3,885,965.80.
Mr. S train is ch airm an of the board
and presid en t of th e bank. D irectors
are M. V. Beghtol, Jean R. K inder, and
AV. AV. P utney, and Vice P resid en t
E dw ard A. Becker.
O ther officers are W. S. B attey, L red
S. A ldrich and J. O. Peck, vice p resi­
dents; H ow ard H adley, vice president
and tru s t officer; C. W. B attey, cashier;
H. E. L einberger, a ssistan t cashier,
and A. AV. Griffin, a ssistan t tru s t offi­
cer.

Ranks Fourteenth
C entral N ational B ank of Columbus
ran k s fo u rteen th in th e state. T here
are 422 banks in N ebraska.
The b ank celebrated its th irty -fo u rth
an n iv ersary last m onth. The original
ch arter, how ever, w as g ran ted in the
nam e of th e G erm an N ational Bank,
u n d er w hich title th e b ank operated
u n til 1918 w hen th e nam e, C entral
N ational Bank, w as adopted.
The original board of directors 34
years ago consisted of G. AV. Phillips,
H. S. E lliott, Theo. F riedhof, J. F.
Siems, and P. E. McKillip. D uring the
e n tire period th e b ank has occupied its
p resen t location.
Follow ing th e ban k holiday in 1933
th e bank grew rapidly and th e in terio r
w as com pletely rem odeled.
F o r th e use of business and profes­
sional offices a n ig h t depository has
been installed w here deposits can be
m ade any tim e after b ank closing
hours.

Clearing House Meetings
N ebraska ban k ers w ould hold 13
regional clearing house m eetings in
various p a rts of th e state last m onth,
AVilliam B. H ughes, secretary of the
N ebraska B ankers A ssociation a n ­
nounced.
M eetings w ere scheduled for Sep­
tem b er 10 a t Columbus, S eptem ber 17
a t G rand Island, 19th a t York, 25th at
M inden and O’Neill, 26th a t Scottsbluff. D ates for m eetings a t F airb u ry ,
F rem ont, Gordon and H um boldt w ere
te n tativ e and no dates w ere set for
N orthw estern B anker October 1940


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

42

• NEBRASKA
m eetings a t McCook, N o rth P la tte and
W ayne.

Injury Fatal
Sam uel M. P atterso n , 68, Alma, w ho
w as secretary to fo rm er g o vernor
K eith N eville of N o rth P latte, and p re ­
viously a state legislator, died recen tly
from autom obile accident in juries.
H is wife, w ho suffered a skull frac­
tu re and o th er injuries, w as rep o rted
in critical condition.
T h eir car stru c k a highw ay m ainta in e r n e a r Butte.
P a tte rso n served in th e state legis­

N E WS

la tu re in 1915. A fter acting as sec­
re ta ry to Neville, he w as a p a rtn e r in a
b an k at A rapahoe, th e n state b ank
exam iner.

County Meeting
A d in n er followed by a business ses­
sion of th e Paw nee County B an k ers’
A ssociation w as held at Paw nee City.
The guest speaker w as Mr. Hogsdon,
Omaha, of th e labor d ep artm en t w ho
spoke on th e w age hour act. Those
p re se n t a t th e m eeting w ere, F. H.
O berm ann and H arlan Schram , Burchard; L. C. F rw ell, DuBois; B ernard

•
Steinauer, Steinauer; J. A. B arr, H. C.
V anH orne, M. K. V anH orne, E. F.
W itte and C. T. B arton.

Gold Medal
R ecently L. J. K u d rn a of th e F irs t
N ational B ank of W ahoo, w as p re­
sented w ith a gold m edal and certifi­
cate in recognition of fifty years serv­
ice as agent for th e Hom e In surance
Co. Chas. H endrickson, state agent
and S. S. Caldwell, of Omaha, m ade th e
p resen tatio n in behalf of th e com pany.

Meet at Broken Bow

Charter N o . 2 0 9

First National Bank
o f (tmalia

The
O ldest National B an k
Fro m Omaha West
Nationalized 1 8 63
O FFICERS
T.
F.
J.
C.
J.
J.

L. D a v i s .......................................... President
A. H. C h i s h o l m .................. A ssistant Cashier
W . T h o m a s .................................................V ice President
O. H. E l l i o t t ...................... A ssistant Cashier
F. M c D e r m o t t ........................................ Vice President
C. H . V e b e r ......................... A ssistant Cashier
D . S a u n d e r s ............................................. Vice President
E. X. S o l o m o n .....................A ssistant Cashier
T. S t e w a r t , I I I .V ic e Pres, and Cashier
E . F . J e p s e n .........................A ssistant Cashier
F. D a v i s ..................................................... V ice President
H . A. A r n s b e r g e r .............A ssistant Cashier
W. E. S p e a r ...................................Trust Officer
E. G. S o l o m o n ..........A ssistant Trust Officer

Member
Federal Reserve System

N orthw estern B anker October 19b0

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

Member
Federal Deposit Insurance Corporation

Five Ord ban k ers w en t to B roken
Bow recen tly to a tten d a m eeting of
th e C entral N ebraska Clearing H ouse
A ssociation. In th e group w ere R. E.
Misko, H orace T ravis, C urt Gudmundsen, Jam es P etsk a and C. J. M ortensen.

To Grand Island
R. L. W olcott, salesm an for th e
F ederal L and Bank, has resigned his
position, effective October 1, to accept
a position w ith th e G rand Island T ru st
Com pany at G rand Island. P rio r to
w orking for th e L and B ank he w as
fieldm an for th e Lincoln N ational Life
Insu ran ce Com pany a t F o rt W ayne,
Indiana, and th e F ed eral L and Bank.
Mr. W olcott w as also a b ank exam iner
for several years, h aving charge of
liquidating failed banks. Mr. and M rs.
W olcott form erly resided at G rand
Island.

Leigh Banker Dies
T hom as M ortim er, 81, extensive lan d
holder and form er presid en t of the
F irs t N ational Bank, Leigh, died re­
cently at his hom e after a long illness.
H is death w as due to cancer.
In 1917 he becam e p resident of the
F irs t N ational B ank of Leigh. The
follow ing y ear he re tire d from his
ra n c h and m oved to tow n. He also
served as a m em ber of the board of
directors of th e M adison Bank.

Fish Dinner
The officers and directors of the
F irs t N ational Bank, F alls City, en­
joyed a fish d in n er a t Rulo. Included
in th e group w ere th e follow ing guests
from Omaha: L. H. E a rh a rt, m anager
of th e F ed eral R eserve Bank; F. W..
Thom as, vice presid en t of th e F irst
N ational Bank; A lbin E. Johnson, pres­
ident of th e Live Stock N ational Bank;
H erb ert S. Daniel, m anager, and
George R. B uckner, exam iner, of theR econstruction F in an ce Corporation.

43

Omaha
MAHA and N eb rask a w ere w ell
rep re se n te d w h en th e A ssocia­
tio n of B ank W om en held its an n u al
convention in A tlan tic City Sept.
19-21.
F o u r re p re se n ta tiv es from th e Oma­
h a c h ap ter w ere m em bers of conven­
tio n com m ittees and took an active
p a rt in convention activities: M iss
E th el E. M ellor of th e Om aha N a­
tional B ank, w ho is regional vice p re s­
id en t for th e m idw est section and a
m em ber of th e g en eral convention
com m ittee; M iss A nna T. Olsson of th e
Live Stock N ational B ank of South
Omaha, m em ber of th e p ublicity com ­
m ittee; M iss F ran ces E. Stem of th e
F irs t N ational B ank of Omaha, m em ­
b er of th e no m in atin g com m ittee, and
M iss M innie P halen, m em ber of th e
edito rial com m ittee and of th e e n te r­
ta in m e n t an d h o sp itality com m ittee.
A re p re se n ta tiv e of o u tstate N e­
b rask a w as M iss D elm a E. K reutz, a s­
sista n t cashier of th e H a rv a rd State
B ank, H arv ard , Neb.

O

R ecent an n o u n cem en t th a t charges
of incom e ta x evasion h ad been filed
ag ain st an Elsie, Neb., m an b ro u g h t
th e allegation th a t a b a n k e r in th a t
w e ste rn N ebraska tow n of 210 popu­
latio n h ad am assed a near-million-dollar fo rtu n e in 20 years.
Bad advice and lack of know ledge
of bookkeeping m ethods w ere blam ed
by th e b a n k e r’s a tto rn e y for th e m a n ’s
tro u b les w ith th e governm ent.
T he ban k er, 65, left grade school to
becom e a teleg rap h er and statio n

SELL YOUR BANK
The “Walters” Way
Without Publicity
Qualified, carefully investigated bank
employees furnished free
T H E CHARLES E. W A LT ER S CO.
Omaha, Nebraska

ag ent a t Elsie. In 1907, he bought a
one-third in te re st in the bank, w hich
w as capitalized a t $10,000. G overnm ent
in v estigators found the b an k er to be
w o rth $97,000 by 1918, w hen th e in ­
come tax law w ent into effect.
T he g overnm ent charged th a t in
1934 th e m an ’s gross incom e am ounted
to $51,205, increasing to $53,509 in
1935 and to $56,871 th e n ex t year.
The first of those th ree y ears w as a
y ear of deep depression and all w ere
d ro u th y ears in N ebraska.

FE E D E R

The g overnm ent alleged th a t, al­
th ough his total taxable incom e for
th e th ree y ears w as $138,578, he filed
re tu rn s on only $31,854. T he b an k er
w as accused of evading taxes of
$23,000 in th e th ree years. The sta t­
ute of lim itations prev en ted going
fu rth e r into th e record, it w as stated.
Indicted in Omaha by a federal
g ran d jury, th e m an su rren d ered vol­
u n ta rily to th e U nited States com m is­
sioner at Alliance, Neb., posted a
$5,000 bond.
Most of th e fortune, it w as alleged,
w as m ade in handling real estate in
th e drouth-stricken area su rro u n d in g
Elsie, n ear th e Colorado line. He a t­
tem pted to conduct his grow ing busi­
ness w ith only th e help of his w ife
and daughters, none of w hom had a
know ledge of bookkeeping, his a tto r­
ney said. The a tto rn ey said fu rth e r
th a t th e only advice th e b an k er ever
received on th e incom e tax law w as
from “a self-styled ex p e rt” and this
advice proved to be “v ery w rong.”
I t w as said th a t w hen notified he
had been rem iss, th e b an k er w en t to
W ashington, offered to pay all backtaxes and penalties.
The case w ill be h eard a t th e nex t
te rm of federal court in Omaha. M ean­
w hile, it w as said efforts w ill be m ade
to com prom ise both th e civil an d crim ­
inal action.

L O A N S

W e m ake lo a n s to su p p lem en t the credit facilities of
our Banker Friends.
W rite us

Live Stock National Bank
Omaha
(Member Federal Deposit Insurance Corporation)

N orthw estern Banker October 19'tO

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

44

POSTING UNO PROVING P U N S
FOR ft BUNK’S COMMERCIAL
bookkeeping d epa rtm en t
JS y o u r p re s e n t p la n m e e tin g A L L o f y o u r
r e q u ire m e n ts .
„ „ . „ n i t v to r e d u c e c o s ts in
Is th e r e a n o p p o r tu n i ty
‘
th is d e p a r tm e n t!1
W ill a < * . « * 1« » '* " *“ »’ * ! " ” 7 k » V ,S

r i i i U COMI’ANY

This free b o o k le t is o ffered to h elp y o u

REDUCE ACCOUNTING COSTS
Today’s necessity for reducing accounting costs,
together with the problem s set up by the present w ork
week, makes it especially desirable that a bank occa­
sionally review the posting and proving method in use
by the commercial department. To help you make com­
parisons and determine w hether there is a way for you
to reduce costs in this department, Burroughs has
published a booklet describing in detail the ten posting
and proving plans used by banks. This new booklet is
yours for the asking. Telephone your local Burroughs
representative, or, if more convenient, write direct to —
BURROUGHS A D D IN G M ACHINE COM PANY
63 31 S E C O N D

A V E N U E , D E T R O IT , M IC H IG A N

Charles I). Saunders, vice p resident
of the F irs t N ational B ank of Omaha,
has been nam ed a tru ste e of th e Oma­
ha C ham ber of Com merce reserve
fund by W. C. F raser, presid en t of the
Omaha cham ber. He succeeds J. F .
M cDerm ott, also vice p resident of th e
F irs t N ational Bank.
Mrs. L loyd H. Earhart is co-chair­
m an, w ith Mrs. J. H. W eaver, for th e
Douglas County Red Cross ch ap ter’s
project of m aking garm ents for w ar
refugees. Mrs. E a rh a rt is the wife of
th e m anaging director of the Omaha
branch, F ed eral R eserve B ank of K an­
sas City.
Recently, th e w om en inspected 18
bales of supplies w hich w ere loaded
for sh ipm ent to E ngland. The ship­
m ent included 3,000 articles—layettes,
convalescent young w om en’s and chil­
d re n ’s flannel dresses, hospital and
surgical gowns. All the g arm ents
w ere m ade by w om en of the Douglas
county ch ap ter a t Omaha since Ju n e
15.
Mr. and Mrs. E a rh a rt spent a m onth
at a cottage a t Lake Okoboji, in th e
n o rth e rn Iow a lake region, this sum ­
mer.
L eon Sm allw ood, m essenger for
Justice W illiam O. Douglas of the
U nited States suprem e court, w as in
Omaha several days recently visiting
Thom as M aham m itt. Smallwood once
w as a m essenger for th e Omaha N a­
tional Bank.
P resid en t T. L. D avis of th e F irs t
N ational B ank of Om aha and Mrs.
Davis w ere am ong the sum m er tra v ­
elers w ho re tu rn e d hom e recently.
T hey are back from th eir sum m er
hom e at A lexandria, Minn., on Lake
M iltona. Mr. and Mrs. Davis w ent to
M iltona th e m iddle of July. Spending
freq u en t w eek-ends w ith them w ere
Mr. and Mrs. Jo h n R. L auritsen, th e ir
son-in-law and daughter, w ho live in
M inneapolis.
Mrs. V ictor B. Caldwell, Sr., arriv ed
hom e recently after tw o m onths at her
an n u al vacation spot, Ogunquit, Maine.
Miss Caroline Dodge of W ashington,
form erly of Council Bluffs, w as w ith
Mrs. Caldwell d u ring the sum m er.
P receding h er hom e w ere h er son,
V ictor C aldwell, Jr., vice p resident of
the U nited States N ational B ank of
(T u rn to n ex t page, please)
, YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE, VAU LT AND
TIMELOCK EXPERTS

\ F. E. DAVENPORT & CO.
OM AHA

N orthw estern R anker October 19)0

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

45
Jam es F. O’Donnell, 65, secretarytre a su re r of th e O’Neill u n it of th e
N ational F arm Loan Association, died
at his hom e after five days’ illness.
O’D onnell sta rte d w ork at F irs t N a­
tional B ank in O’Neill a t the age of 16.
He w orked for o ther banks as officer
or employe, u n til his death. S urviv­
ing are his widow, a son, H ugh, of
Omaha, and four daughters, including
Mrs. W illiam Credle of Omaha.
M ary M argaret M aly, dau g h ter of
S tan ley M aly, vice p resident of the

T H E sta te ban k in g d e p a rtm e n t re ­
ceived w ord recen tly of th e death
of P. A. S u lliv a n , 55, receiver in charge
of liqu id atin g th e S ecurity State B ank
of Law rence.
An em ployee of th e d ep artm en t
since 1931, Mr. Sullivan w as strick en
a t his desk in th e b an k and died there.
L iquidation of assets of the b an k had
been com pleted save for m inor details.
D uring th e y ears he w as w ith th e
d ep artm en t, Mr. Sullivan w as sta ­
tioned a t K earney and Upland. He is
surv iv ed by his widow, tw o d au g h ters
and his father.
E. H. E uikart, receiver of th e B ank

of B enklem an, asked the suprem e
co u rt for a re-hearing of th e su it
b ro u g h t ag ain st tw o groups of stock­
holders to recover on th e ir stock lia­
bility. One group is com posed of two

m en w ho had signed a g u aran tee of
p aym ent of any losses w hen th e F a rm ­
ers & M erchants B ank took over the
o ther one, b u t w ho w ent th rough b an k ­
ruptcy. The court held th a t th is dis­
charged them of th e ir stock liability.
Mr. L u ik art says it should have held
th a t his claim s w ere not of a n a tu re
th a t could be w iped out by such pro­
ceedings. T he o th er group w as re ­
leased of liability on the ground th a t
th e bank exceeded its law ful pow ers
w hen it m ade th e co n tract w ith the
o ther bank. Mr. L u ik a rt says the
court should hold th a t having know n
of th e contracts and having accepted
benefits from its operation, th ey are
estopped to claim im m unity on th a t
ground.

TT

Hotel
Wellington
f

We are h appy to list among
our regular guests, a large num ­
ber of the banking fraternity.
You too will thoroughly enjoy
our Courtesy and H ospitality.

F irst N ational B ank of Lincoln, w as
m arried last m onth to H a rry H aynie,
who is au d ito r w ith Martin-Cole of
Lincoln. The bride grad u ated last y ear
from th e U niversity of N ebraska.
Mr. M aly’s son S tanley, Jr., is now a
fresh m an in th e state u n iv ersity h av ­
ing grad u ated last y ear from C ulver
M ilitary Academy.

O M A H A C L E A R IN G S
(C ontinued from page 44)
Omaha; Mrs. Caldwell and th e ir
daughters, Misses M ercedes and B etty,
w ho spent several w eeks a t Lake Okoboji. Miss M ercedes left Sept. 19 for
Radcliffe college, w here she is a
sophom ore.
P erry H endricks, vice p resid en t of
th e U nited States N ational B ank of
Omaha; Mrs. H endricks and th e ir son,
P erry, Jr., left recently for Ithica, N.

REST- PL AY- RESTORE HEALTH

itrs PEP UP

W ITH THE W O R L D F A M O U S
MINERAL WATERS OF
t

y

t

c

t

i

s

i

o

n

SPRINGS
MISSOURI
Curative m ineral w aters . . .
Opportunities lor all sports

7?

and recreations . . . Air
S u rp risin g ly R easonable R ates

conditioned sleep in g room s

Rooms With Bath
$2.00— $2.50

. . . Write for information
or reservations.

•s

F arnam at 18th Street
OMAHA

ELMS HOTEL

J

N orthw estern Banker October Í9Í0

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

46

NEBRASKA
Y., w h ere P erry , Jr., en tered Cornell
u n iv e rsity for his first year. Mr. and
Mrs. H endricks also stopped a t E v a n s­
ton, 111., to v isit th e ir son-in-law and
daughter, Mr. and Mrs. B enjam in V.
H alstead, and sm all daug h ter, Sally.
AY. D ale Clark, p resid en t of th e
Om aha N ational Bank; Mrs. C lark and
th e ir d aughter, Miss Jessie, and son,
W alter, sp en t th e L abor day holiday
a t E stes P ark.
Otis T. A lvison , vice p resid en t of th e

NEWS

O m aha N ational Bank, and Mrs. A lvi­
son have re tu rn e d from Beloit, Wis.,
w h ere th e y visited th e ir son-in-law and
d aughter, Mr. and Mrs. Jo h n W. H ow ­
a rd and tw o children, Jo h n Alvison
and Jam es Otis. D uring th e ir th ree
w eeks’ vacation, th e A lvisons m otored
in n o rth e rn W isconsin, stopping in the
G reen Bay region for several days.
D aniel J. M onen, tru s t officer of the
Om aha N ational Bank, Mrs. M onen
and th e ir daughters, P atricia and
M ary, and th e ir son, Dan, spent a

m onth in California. Most of th e tim e
th ey w ere in Los Angeles w ith Mrs.
M onen’s paren ts, Mr. and Mrs. F re d e r­
ick M onaghan.

In Creighton Bank
Miss M arcella B uetler, Y utan, has
accepted a position as bookkeeper and
sten o g rap h er at th e A m erican N ation­
al Bank, C reighton, succeeding Miss
B etty V anD eveer, w ho has resigned to
en ter M orningside College. Miss Van
D eveer expected to leave about Sep­
tem ber 16.

Heads Commission Company

‘The Bank at the Y ards’
D IR E C T O R S
O F F IC E R S
C. L. Fredricksen, President
M. A. W ilson , V ice President and Cashier
W . G. N elson , A ssista n t Cashier
W . C. Schenk, A ssista n t Cashier
L. W . R oss, A ssista n t Cashier

C. R. M cK enna, President, Johnson B isc u it Co.
B. L. Sifford, A ttorney, Sifford & W adden
G. F. Silknitter, President, Sioux City
Stock Yards Company
C. L. Fredricksen, President
M. A. W ilson , V ice President and Cashier
H. C. B osw ell, Secretary-T reasurer,
W estern Contracting Corporation

"ACES, BOTH"!
The Sioux City Stock Yards and the Live Stock
N ational Bank h a v e grow n up together, both
serving the great Northwest livestock empire.
Each serv es the entire Sioux City trade area
and both offer sp ecialized service to the live
stock industry.

W e e sp e c ia lly recom m end this

pair of "aces" to live stock, grain and h a y
custom ers.

N A T IO N A L
AN
Sioux City, Iowa
Member Federal Deposit Insurance Corporation

N orthw estern B anker October 19^0

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

George W. B ro ad h u rst of m inatare,
resid en t of K im ball and B ushnell for
15 years, has purchased controlling
stock in th e P latte Valley L ivestock
Com m ission Com pany of Scottsbluff
and w ill operate a consignm ent sale
th ere in th e future. He w ill assum e
active m anagem ent of th e concern.
B ro ad h u rst has had 30 y ears experi­
ence in th e banking and livestock in ­
du stries in Colorado, W yom ing and
N ebraska. He recen tly sold his in te r­
est in th e F irs t N ational B ank at
M inatare w here he had served as cash­
ier.

Named President
F ra n k Shonka, a ssistan t cashier of
th e C entral N ational Bank, w as elected
presid en t of th e Colum bus Clearing
H ouse A ssociation a t its an n u al m eet­
ing. He succeeds E lm er Bradley, p resi­
den t of th e Colum bus Bank. Shonka
w as secretary -treasu rer of the associa­
tion last year.
H. L. G erhart, vice presid en t and
cashier of th e Colum bus B ank was
elected as secretary-treasurer.
The executive com m ittee includes:
Boone county, L. J. Fox, vice p resident
and cashier of th e F irs t N ational B ank
of Albion; Polk county, D. R. Byers,
cashiers of th e F irs t N ational B ank of
Osceola; N ance county, George C.
Kum pf, cashier of the B ank of Leigh;
P latte county, P. J. T ernus, cashier of
th e F arm ers State B ank of H um phrey;
M adison county, E. H. G erhart, pres­
ident of th e F irs t N ational B ank of
N ew m an Grove, and B utler county, L.
F. Novak, cashier of th e B ank of
B rainard.

Returns to Humboldt
Miss M arie Kotouc has re tu rn e d to
H um boldt from Lincoln, and w ill re ­
m ain w ith h er p arents, Mr. and Mrs.
Otto Kotouc, Sr. Miss Kotouc w ill be
connected w ith th e H om e State Bank.
F o r th e p ast tw o y ears she has been
em ployed by th e F irs t T ru st Co., of
Lincoln.

47

SOUTH
DAKOTA
F. F. P H IL L IP P I
President
Milbank

NEWS

Pioneer Dies

■n

1

George Pilger, 69, C ham berlain,
South D akota, pioneer b an k er and re ­
tire d hotel m an, died recen tly in
N o rth w e ste rn H ospital of infection
w hich developed a fte r a freak in ju ry .
He and Mrs. P ilger sta rte d on a v aca­
tio n and reach ed W aterloo, Iowa, Sep­
tem b er 2, to v isit Mrs. P ilg er’s b rother.
T hey found no one at hom e and he
attem p ted to en te r th e house by craw l­
ing th ro u g h th e w indow. He fell
b ackw ard and w as in ju re d on th e
po in t of a sm all rod used to p ro tect a
tree.
A fter th e couple cam e to M inneap­
olis, he com plained of th e in ju ry and
on Septem ber 12 w en t to N o rth w est­
e rn H ospital for treatm en t.

Resigns
E ugene H erboldt, w ho has been con­
nected w ith th e Ipsw ich State B ank as
vice president, and th is y ear w as elec­
ted director, has resigned his position.
Several business o p p o rtu n ities are u n ­
d er consideration at th e p re se n t tim e,
b u t Mr. H erboldt h as n o t decided
w hich he w ill accept.

Sioux Falls A.LB.
The Sioux F alls ch ap ter of th e
A m erican In stitu te of B anking held
its an n u al com m encem ent b an q u et re ­
cently. O rville Bonacker, p resid en t
of th e chapter, w as to astm aster. P a l­
m er K. L arson delivered th e com ­
m encem ent address, using as his su b ­
ject “The Golden R ule.”
T. N. H ayter, vice p resid en t of th e
F irs t N ational B ank and T ru st Com­
p an y of Sioux Falls, aw arded certifi­
cates to th e follow ing g raduates: P re ­
sta n d a rd certificates, C harles J. B en­
n ett, O rville L ester Bonacker, Don E.
Lovejoy and Roy J. Wolff; stan d ard
certificate, Don E. Lovejoy; g rad u ate
certificates, L. H. H agen and Adolph
Lodmell.
I t w as also announced th a t th e m em ­
b ersh ip com m ittee show s an increase
in enrollm ents over th e classes of last

GEORGE M. STARRING
Secretary-Treasurer
Huron

year. The classes to be offered this
y ear are Econom ics II, w ith Clarence
R. Beck as in stru cto r, and T ru st I,
conducted by P. H. McDowell.

Silver Dollars
The D upree B ank recently accum u­
lated a su rp lu s of silver dollars and
decided to ship 500' of the “C artw heels”
by express to an A berdeen bank.
W hile p rep arin g th e silver pieces for
shipping, a dispute arose relative to
th e w eight of th is m uch silver. Ac­
cordingly, th ey w ere w eighed and it
w as found th a t th e 500 silver dollars
w eighed exactly 29 pounds.

Attend Picnic
The en tire staffs of both the Citizens
B ank and th e N ational Bank, both of
V erm illion, South Dakota, w ent to
C enterville recen tly to atten d th e an ­
nu al picnic of th e S outheastern South
D akota Clearing H ouse A ssociation at
G underson P a rk there.
A fter a chicken dinner, discussions
of various phases of b anking w ere
held. H. L. Sm ith is secretary of the
association.

Trust Conference
In v itatio n s to a tten d th e E lev en th
A nnual M id-Continent T ru st Confer­
ence of the tru s t division, A m erican
B ankers A ssociation, to be held in
Chicago at th e Stevens H otel, N ovem ­
b er 7 and 8, have been sent out to all
m em bers in th e conference area, it

is announced by R oland E. Clark, p res­
ident of th e division.
The C orporate F iduciaries Associa­
tion of Chicago w ill act as host to the
conference. O. A. Bestel, vice p resi­
den t of th e F irs t N ational B ank of
Chicago, is p resid en t of th e Chicago
association and is general chairm an
of th e conference.
T he program is practically com­
pleted and copies w ill be m ailed in
th e near fture, Mr. Clark states in his
invitation. A n um ber of w ell-know n
speakers have accepted invitations to
speak on subjects of present-day in ­
te re st including taxation, insurance,
legal in v estm en t and operating prob­
lems, public relations and problem s of
sm aller tru s t departm ents.
The an n u al b an q u et w ill be held the
evening of T hursday, N ovem ber 7.
The states included in th e Mid-Con­
tin e n t area are: A rkansas, Colorado,
Illinois, Indiana, Iowa, K ansas, M ich­
igan, M innesota, M issouri, N ebraska,
N orth Dakota, Ohio, Oklahoma, South
Dakota, Texas, and W isconsin.

Quarterly Dividend
A t th e m eeting of th e board of tru s ­
tees of the New Y ork T ru st Company,
a q u a rte rly dividend of 5 per cent
($1.25 p er share) on th e capital stock
of the com pany w as declared payable
October 1, 1940, to stockholders of rec­
ord a t the close of business on Sep­
tem ber 21, 1940.

Leave Granted
Joseph C. R ovensky, vice p resid en t
of th e foreign d ep artm en t of th e Chase
N ational Bank, has been g ran ted a
leave of absence to accept th e posi­
tion of adm in istrativ e a ssistan t on
economic and financial m atters w ith
th e organization of N elson A. Rocke­
feller, co-ordinator of com m ercial and
cu ltu ral relations betw een th e A m er­
ican Republic of th e Council of N a­
tional Defense, it w as announced. Mr.
R ovensky, w ho is also presid en t of
th e ban k ers association for foreign
trade, w ill serve as a dollar a year m an.

South Dakota Group Meetings
DAY

D A TE

Saturday_______ N ovem ber
M onday________ N ovem ber
T uesday________N ovem ber
W ednesday_____ N ovem ber
T hursday______ N ovem ber
F riday_________ N ovem ber
Saturday_______ N ovem ber

GROUP

16__ _ Group
18---- _G roup
19--- G roup
2 0 --- _ G roup
2 1 --- _ G roup
2 2 --- _ G roup
2 3 --- _G roup

PLA CE

V _______ at H uron
I V ______ at Aberdeen
V I______ at M obridge
V II______at Rapid City
I I I ______ at Chamberlain
I ________ at Tyndall
11_______ at Sioux Falls

N orthw estern Banker October 19k0

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Federal Reserve Bank of St. Louis

48

r

M

ORE than eight anim als on the h o o f fo r every person
in a city the size o f M inneapolis! This is the am ount o f
livestock in fo u r m ajor classifications that goes into one
N orthwest center o f the packing industry in a single year!
M illions o f anim als — m ore m illion s o f dollars going
hack to give us all better livin g in the Great N orth w est!

N ORT H WE ST ER N
RANK BUILDING —
Tenants Have Every
Con venience -- 1 6
Floors, 16 Elevators,
134 Windows per
Floor.

Stock raisers and farm ers built this great industry,
with the coop eration and team w ork o f th eir bankers. Our
job as correspondent was and is to help m ake this team ­
work com p lete. We give you efficient, ex p erien ced service,
and are as near as your telep h on e, telegraph or typew riter.
USE "NORTHWESTERN" SERVICES
D e p a rtm e n t o f B a n k s an d B a n k ers
Wm. N. Johnson

F. W. Conrad

D. E. Crouley

L. P. Gisvold

V ice P re sid e n t

A sst. V ice P re s.

A sst. C a sh ier

A ssista n t C ash ier

No r t h w e s t e r n n a t i o n a l b a n k
AND TRUST COMPANY
MARQUETTE AVENUE: 6TH TO 7TH STREET

N orthw estern B anker October 19W

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Federal Reserve Bank of St. Louis

•

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

49

K. O. SATTRE
President
B lue Earth

Clearing House Head
E. A. Tim m of B alaton has been
nam ed as p resid en t of th e so u th w est­
e rn M innesota C learing H ouse Associa­
tion. W alter F. L ange of Pipestone,
w as elected se cretary and tre a su re r.

Heart Attack Fatal
R u sh in g to see his dying wife, who
recen tly suffered a bro k en hip, A lbert
G. Johnson, p resid en t of th e H arm ony
B ank, died from a h e a rt atta c k w hich
occurred w hile he w as in his autom o­
bile n e a r W illm ar. A few h o u rs later,
his 70-year-old w idow succum bed.

Five-County Meeting
A bout 150 m em bers atten d ed th e a n ­
n u al m eeting of th e Five-C ounty C lear­
ing H ouse A ssociation w hich w as con­
ducted at th e St. Cloud C ountry Club.
A fter an aftern o o n of golf, th e b a n k ­
ers held a b an q u et w hich w as followed
by speeches, e n te rta in m e n t and elec­
tion of officers.
Officers include E lm er E rickson,
Cam bridge, p resident; R. C. Capple,
Mora, vice presid en t; Jam es Hobe, Milaca, secretary -treasu rer.
Board of directo rs elected for one
y ear include: H arold Ness, Mora; Jo h n
Odegard, Santiago; R om an N iedjielski,
Gilman; R. E. Rodge, P rinceton; J. E.
Ebby, H inckley; E. M. A nderson, Braham .
F ra n k Pow ers of Mora w as to a st­
m aster a t th e after-dinner p ro g ram at
w hich F. L. M adden of St. P aul and
W illiam D uncan of M inneapolis w ere
speakers.
The five counties rep resen ted are
Benton, Itasca, Kanabec, Mille Lacs,
Sherburne.

Appointed Cashier

y»

Carl B erglund, n ative of Superior,
w ho has been associated w ith b anks at
th e H ead of th e L akes since 1913, has
been appointed cashier of th e B ank of
Com m erce and Savings, D uluth.
i T he ap p o in tm en t of Mr. B erglund
w as announced by Ja y E. M arkle, p re s­
id en t of th e bank.

W ILLIAM DUNCAN, Jr.
Secretary
Minneapolis

Mr. B erglund, w ho w as born in Supe­
rio r and attended th e public schools
there, first entered th e banking busi­
ness in 1913, w hen he becam e asso­
ciated w ith th e old F irs t N ational
B ank in D uluth. In 1919 he w ent to
th e U nited States N ational B ank in
Superior and after 10 y ears he re ­
tu rn e d to D uluth to become connected
w ith th e new ly consolidated F irs t and
A m erican N ational Bank. Since th en
he has been in th e credit d ep artm en t
of th e bank.

Correction
A M innesota new s item in our Sep­
tem ber issue stated th a t I. H. Ickler
had been elected presid en t and direc­
to r of th e F irs t N ational B ank of New
Ulm. W e find this to be an error. Mr.
Ickler assum ed his new duties in th e
F irs t N ational B ank of Sleepy Eye,
instead of New Ulm. W e are h appy to
m ake th is correction.

New Assistant Cashier
D irectors of th e Security State B ank
of Robbinsdale, have elected Sven
G rundstrom a ssistan t cashier of the
b ank to succeed E. A. Jaenisch who
has resigned from th e b a n k ’s official
staff. Mr. G rundstrom comes to the
Robbinsdale ban k a fter four and a half
years at the M innehaha N ational B ank
of M inneapolis and six years as teller
at the H ennepin State Bank, M inneap­
olis.

Anniversary
The fifteenth an n iv ersary celebra­
tion o fthe Security State Bank, Ro­
chester, w as a delightful affair and
about 600 adults and 400 children re ­
sponded to th e invitatio n to call at the
b ank th a t day.
Open house w as held from 9 o’clock
in th e m orning u n til 4 o’clock in the
afternoon. On hand w ere W illiam
Rosenow, B. O. E n sru d and M. E. Kalton to greet th e guests and pass out
cigars to th e m en and pencils to th e
children.
Several gorgeous bouquets of flowers
w ere in evidence and four w ere of

especial beau ty and w ere p resen ted to
th e b ank on this occasion by th e F irst
N ational B ank of M ankato, th e N o rth ­
w est N ational B ank of M inneapolis,
th e F irs t N ational B ank of St. Paul and
the M idland N ational B ank and T ru st
Com pany of M inneapolis.
The S ecurity S tate B ank w as organ­
ized and opened for business on A ug­
u st 31, 1925. P resen t officers are W il­
liam F. Rosenow, president; B. O. E n s­
rud, vice president; M. E. K alton, cash­
ier; Val Yokiel, assistan t cashier; Mil­
dred H anson, teller and stenographer,
and H erm an Junge, teller and book­
keeper.
D irectors are H en ry B arnick, B. 0.
E nsrud, M. E. K alton, E rn e st A. Miller,
W illiam F. Rosenow and Val Yokiel.

Redecorated
The job of redecorating th e in terio r
of th e F irs t State B ank of Storden w as
com pleted recen tly and it m akes a
splendid im provem ent in its ap p ear­
ance.
Storden has one of th e nicest b ank
stru c tu re s in th a t p a rt of th e state and
th e officers believe in keeping it th a t
way.

Bank Opens
The State B ank of H endricks sw ung
open its b anking doors recently. The
first day’s business w as not so great
b u t each day succeeding th e to tal de­
posits increased considerably. Several
fine accounts have been entered and
th ere are m any m ore com ing in each
day.
J. W. Siverson is p resid en t and J. M.
R einen is cashier. The in terio r of the
ban k has been com pletely redecorated
and th e fixtures som ew hat m odernized.
Tw in City banks sent beautiful bou­
quets of flowers for th e opening day
and expressed best w ishes for th e
b a n k ’s success. T he A m erican N ation­
al B ank of St. P aul and th e N orthw est­
ern N ational B ank & T ru st Com pany
of M inneapolis w ere th e donors.

Pioneer Dies
F u n e ra l services w ere held recently
for S. D. Noonan, 79 years old, p resi­
dent of th e F arm ers State B ank of
M adelia and a M adelia resid en t for 50
years. His wife, two d aughters and a
son survive.

To Minneapolis
W. H. N etland, cashier of the A ustin
State B ank for th e last year and onehalf, has accepted a tra n sfe r of posi­
tion to th e h ead q u arters of th e N o rth ­
w est B ancorporation in M inneapolis.
Mr. and Mrs. N etland cam e to A ustin
th ree years ago.
N orthw estern Banker October 19b0


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Federal Reserve Bank of St. Louis

50

Twin City News

G

UY AV. LaLONE, vice p resid en t of

F irs t N ational B ank & T ru st Co.,
M inneapolis, has been nam ed tre a s ­
u rer, a directo r and m em ber of th e
executive com m ittee of th e N icollett
hotel there. He succeeds H enry Verdelin, form er a ssista n t vice p resid en t
a t th e bank, w ho resigned recen tly to
accept a post in th e east.
Otis R. P reston, a ssista n t cashier of
M inneapolis F ed eral R eserve B ank,
spoke on “B ank O perations and Public
R elations” at a d istric t m eeting of the
W isconsin B ankers A ssociation at
R hinelander, W is.
Harold E. W ood and Com pany, in ­
v estm en t bank ers, St. Paul, have
nam ed Leo L. Quist vice p resid en t in
charge of th e m unicipal departm ent.
A w ell know n m unicipal m an, Mr.
Q uist has been in th e business for 20
years.
H is service includes th e m unicipal
bond d ep artm en t of D rake-B allard
Com pany, M inneapolis; N o rth w estern
T ru st Company, St. Paul; F irs t Securi­
ties C orporation, in v estm en t affiliate
of F irs t B ank Stock C orporation, and
for th e p ast eight y ears vice p resid en t
in charge of th e m unicipal bond de­
p a rtm e n t of Bigelow-W ebb & Com­
pany.

B anks and b an k ers m u st correct
th e ir ow n im perfections if th e A m er­
ican free-banking processes are to s u r­
vive, R alph AAb M anuel, p resid en t of
M arquette N ational B ank, M inneap­
olis, w arn ed Pacific n o rth w e st col­
leagues a t a U n iv ersity of W ashington
sem in ar a t Seattle, W ash.
T hree officers of N o rth w estern N a­
tion al B ank & T ru s t Co. w ere p ro ­
m oted by directo rs at a m eeting Sept.
19, th e changes resu ltin g from th e re ­
cent d eath of W illiam A. D u rst guiding
N orthw estern B anker October id'tO

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

By James M. Sutherland
Special Corre spon de nt

genius of th e b a n k ’s tru s t dep artm en t
for m any years.
Clarence R. C haney, vice president,
w as elected vice presid en t and vice
ch airm an of th e tru s t com m ittee and
m ade the general ad m in istratio n of­
ficer of th e tru s t departm ent. John S.
P illsb u ry is chairm an of th e tru s t com­
m ittee.
J. B urns A llen, form erly a ssistan t
vice p resid en t in charge of tru s t in ­
vestm ents, w as advanced to vice p resi­
dent. He w ill assist C. \ r. Sm ith, vice
president, w ho rem ains th e operating
officer of th e tru s t departm ent.
Sam uel H. R ogers, a ssistan t secre­
tary , w as prom oted to a ssistan t vice
p resid en t as A llen’s successor.
Mr. Chaney, long an influential fig­
u re in com m ercial b an king circles
here, has been connected w ith the
b an k since 1907. He becam e cashier
in 1920 and vice p resident in 1929. He
w as n ational presid en t of th e A m eri­
can In stitu te of B anking in 1923-24.
Mr. A llen joined M innesota Loan
and T ru st Com pany in 1919. W ith its
m erger w ith th e b an k in 1932, he be­
cam e a ssistan t secretary of th e tru s t
d ep artm ent, advancing to assistan t
vice p resid en t in 1938.
Mr. Rogers has been w ith th e bank
since 1929. He w as m ade assistan t
tr u s t officer in 1936 and a ssistan t sec­
re ta ry in 1938.
G raduation certificates w ere aw ard ­
ed to 58 m em bers of M inneapolis chap­
ter, A m erican In stitu te of B anking, at
th e c h a p te r’s an n u al com m encem ent
d in n er Sept. 12.
C. T. Jaffray, p resid en t of F irs t B ank
Stock C orporation, presen ted th e di­

plomas; F. L. D urand, ch ap ter p resi­
dent, presided, and K. O. Satire, Blue
E arth , presid en t of M innesota B ank­
ers association, w elcom ed th e g rad u ­
ates into th e b an king fratern ity .
P rincipal address w as given by John
C ow les, p resid en t of th e M inneapolis
Star Journal, w ho w arn ed th a t the
U nited States and th e w orld are in
g rav er danger th a n m ost people rea­
lize.
P ointing to a d rift from the tra d i­
tional A m erican policy of separation
of pow ers tow ard a concentration of
pow ers in one au th o rity , Mr. Cowles
asserted “w e’re going rapidly tow ard
a policy of dictation th a t exists in th e
to talita ria n states of E u rope.”
H onor guests included J. Cameron
Thom son, president, N orthw est Bancorporation; T heodore \ \ Told, ch air­
m an, N o rth w estern N ational B ank &
T ru st Co.; A. E. A\Tilson, vice p resi­
dent, F irs t N ational B ank & T ru st
Co.; A rnulf U eland, vice president,
M idland N ational B ank & T ru st Co.,
and R. AV. M anuel, president, M ar­
quette N ational Bank.
G raduates were:
Pre-Standard

S tanley R. A nderson, K eith Carstens, G ordon H. Chapm an, E rn e st
Eliason, C harles M. E rlandson, R obert
F itzgerald, C harles F. Hadfield, L aw r­
ence W. H ealey, F aye V. H oyer, John
M. H oyt, L eonard J. Johnson, H udson
K eith, T hom as M. K ixm oeller, M ary
M elchisedech, George G. Nelson, Gwy­
n eth N icholson, W illiam N ordrum ,
Rolf Opsahl, Roy J. O strander, George
F. P o rter, F lorence E. Rice, Carl Sten­
gel, V ernon Swanson, H u n te r Thacher,
W illiam W. Tustison, Clem ent Van
Nice, and E. Low ell W alker.
Stan d ard

F ran ces S. Baker, H. A. B arglund,
Jam es R. Brow n, Neil Cham pagne,
Gordon H. Chapm an, Rolland F.

51

•MINNESOTA
D oughty, W illiam L. E isler, R alph
E m erson, C. W. G roth, C harles F. Hadfield, Childs A. H allenberg, R u th
Hong, V erna K ockum , Iva B. Lind,
W illiam M orse, Zeldon Pelland, H ow ­
a rd H. Reynolds, Odin A. Sather, S tan ­
ley N. Schm it, R obert J. Schoenhoff,
K now lton J. Stecker, M abel C. Sw en­
son, O. E. Thom as, P au l M. T hom as
an d D avid L. W illiam s.
G ra d u a te C e rtifica te s

L au ren ce M. Broom, W alter F.
H inck, K lem et E. Jensen, A. W. Mills
an d L aw rence R. P eterson.
M em bers of th e b an q u et com m ittee
included H a rry L. Tyson, chairm an,
A rth u r W. A rndt, H elen Brick, Jam es
R. Brow n, A. G. Carlson, G ordon H.
C hapm an, V ictor E. Clausen, H elen D.
D eFore, R olland F. D oughty, Jam es
A. G albraith, Jo h n B. Gozola, Jo h n C.
H endricks, W illard M. H enjum , Don­
ald R. K night, P au lin e Lange, Alice
L ouise L indholm , Bessie L. M artin,
R oy A. Nelson, Wm. M. N ordquist,
G eorge I. N ygaard, V ivian L. Ramlo,
B en C. Sim onson, K now lton J. Steck­
er, E d m u n d W. Sw anson, Rose T hom p­
son, Alice C. W esterson, L ym an W hite
an d D oris W inters.

N E W S * ---------------------------------- -

form ation w as received th a t if plans
w ere carried out th e m erger w ould be
effected by Septem ber 15th. The F irst
N ational B ank w ould assum e all obli­
gations and accounts of th e M iners
State. G. L. T rain is presid en t of the
F irs t N ational. M ayor E dw ard W heelecor is an a ssistan t cashier.

Modernized
T he B ank of Commerce and Savings,
D uluth, has opened for business in its
new m odernistic q u a rte rs covering th e
en tire stre e t floor of the T orrey B uild­
ing at 314-316 W est Superior Street.

The en tran ce at 316 W est Superior
S treet is fu rn ish ed in a m ahogany
brow n g ran ite w ith alum inum signs
on both sides of the hallw ay w hich also
has a door leading from th e corridor of
th e T orrey Building. The m ain doors
are of stru c tu ra l glass w ith alum inum
trim . A n ig h t b ank depository is lo­
cated in th e corridor.
An inform ation desk is located to
th e left of th e stairw ay a t th e entrance,
w hile to th e rig h t is a long custom ers’
desk. The large terraza b an k counters
are on both sides of th e floor, giving a
m odernistic effect w ith th e ir sw eeping

“Found Valuable Advice”

M r. C. H . Sommer, Cashier of
the State Bank o f Rush C ity,
M innesota, has been continuously
in its em ploy since 1892 when he
started in at the age o f fifteen,
except from 1905 to 1909 when
he served the Swedish Am erican
N ational Bank o f M inneapolis.
M r. Sommer has fo r some tim e
been Cashier o f his bank. H is
well known hobbies are trout fish ­
ing and the raising o f gladioli, in
which field he is a recognized
expert and p rize winner.

U. H. Tckler, tr u s t officer, A m erican

N atio n al B ank, St. Paul, now serves
also as p resid en t of F irs t N ational
B ank, Sleepy Eye, Minn. He succeeds
H . C. D om eier, resigned a fte r 30 y ears
w ith th e in stitu tio n .
D avid R. W est has re tire d from
T h ra ll W est Co., in v estm en t b ankers,
to becom e a m em ber of th e law firm
of Fow ler, Y oungquist, F u rb e r, T aney
an d Johnson. T he in v estm en t firm
co n tin u es w ith o u t change.

B anking floor of N o rth w e ste rn N a­
tio n al B ank & T ru s t Co. w as th e scene
of tw o big flower show s—N ational
G ladiolus society Sept. 5 and 6 and
th e M inneapolis D ahlia society Sept.
10 an d 11.
B anks w ere w ell re p re se n te d w hen
a group of M inneapolis business lead­
e rs launched th e first of a series of
v isits to leading in d u stries in oth er
cities of M innesota. The financial
m en included John B u rgess, vice p resi­
d en t, N o rth w e ste rn N ational B ank &
T ru s t Co.; J. A. M urphy, a ssistan t
cashier, F irs t N ational B ank & T ru st
Co., and E d W ells, W ells-Dickey Co.

"The State Bank of Rush City opened an account with the
Scandinavian American N ational Bank of Minneapolis, now the
M ID L A N D , at the time of its organization and has continued its
splendid relations ever since. Mr. E. L. M attson, President, and
the other officers of the M ID L A N D know the needs of the country
hanks and we have found their advice valuable to us.”

Midland
N ational B a n k & T ru st Com pany
o f M in n e a p o lis

Consolidation
N egotiations for the m erging of th e
tw o C hisholm banks, th e F irs t N ation­
al and th e M iners State, w ere expected
to be consum m ated by th is tim e. I n ­

S E C O N D A V E N U E SO U T H AT F O U R T H S T R E E T
M EM BER

FE D E R A L D E P O S IT

I N S U R A N C E C O R P O R A T IO N

N orthw estern Banker October 19W

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Federal Reserve Bank of St. Louis

52

MINN E S OT A NE WS
curves. Cages fam iliarly associated
w ith b anks everyw here have been
com pletely elim inated. E ach teller has
his ow n desk and a sm all safe in w hich
su rp lu s m oney can be dropped. The
latest in steel fu rn itu re has been used
throughout.

Liquidated

Security B ank of P ipestone w ere to
have been taken. The b an king divi­
sion of th e state d ep artm en t of com­
m erce announced th a t th e rem aining
assets of th e b an k w ould be sold Sep­
tem b er 14th. The b an k w as closed
October 31, 1932, and its affairs have
since been in th e hands of th e state
ban k ing division.

T he final steps in connection w ith
the liquidation of th e affairs of th e

Annual Meeting
A. G. Sirek, cashier of th e State
B ank of New Prague, w as elected vice
p resid en t of th e M innesota Valley
C learing H ouse A ssociation at th e an ­
n u al m eeting of th e A ssociation held
at Shakopee.
Officers, directors and staff m em bers
of th e tw o local banks attended th e
m eeting, preceded by a dinner, and
p articip ated in th e election of officers

and h eard pro m in en t speakers discuss
various b an king problem s.
J. T. P eterson of Le Sueur w as
chosen presid en t of th e A ssociation,
and Joseph J. S tern er of W insted
nam ed secretary and treasu rer.
R ep resenting th e New P rague banks
at th e m eeting w ere Mr. Sirek, E ugene
Schmid, Dr. E. E. Novak, Jo h n Mach
and A lbert J. R ynda of th e State Bank,
and W. J. Topka and George Parkos,
presid en t and cashier of the F irst Na­
tional Bank.
The M innesota Valley Clearing H ouse
A ssociation is com prised of m em ber
banks in th e counties of Carver, Scott,
Sibley, Nicollet, McLeod and Le Sueur,
w ith executive offices at Le Sueur.

A G R IC U L T U R A L C H A T T E L
LO A N S
(C ontinued from page 19)

JAM IESON
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An a cco u n t w ith us w ill he p r o fita b le
U) a n y h an k lo c a te d in a te r r ito r y
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Com m odity Brokers
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Members

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and Other Principal E xchanges
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SOUTH ST. PAUL, MINNESOTA

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G overnm ent — M unicipal
Corporation Bonds
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CHARLES C. RIEGER
M anager

Bond Department
M inneapolis —- A tlantic 8235
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Complete B a n k in g and Trust Service
D E T R O IT , M IC H IG A N

N orthw estern B anker October Í940

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Federal Reserve Bank of St. Louis

th a n $600,000 a t such a sale. The
am ount obtained a t th e sale w ill not
pay depositors over 10 cents each.
The sale, how ever, w ill p erm it th e p u r­
chaser to—and it is not unlikely th a t
he w ill—reduce all such indebtedness
to judgm ent, figuring th a t some debt­
ors w ill eventually in h erit property
upon th e death of relatives or th a t the
judgm ent, even though uncollectible,
w ill have a nuisance value. The debt­
ors, m any am ong them being unable to
pay because of circum stances beyond
th e ir control, are th u s deprived of a
chance of financial rehabilitation. The
liquidating agency should forget the
sm all am ount available, and in so do­
ing assist th e debtors in th e ir efforts
tow ard reh ab ilitatio n and to become
su b stan tial citizens. A rem edy for
th is condition can be w orked out.
You m ay say th a t th is borders on
social w ork, and p erhaps it does, b u t
w hen all is said and done, isn ’t a bank
one of th e m ost p o ten t and useful of
all our social agencies? So it is and
so it should be. H ow ever, th e value of
a b ank as a protective and efficient
social agency, w orking for the good of
the com m unity in te re st depends en­
tirely upon the far-sighted and intelli­
gent m an n er in w hich its affairs are
adm inistered. A fter all, in the lend­
ing and collection of m oney, the im m e­
diate re tu rn s or advantages should not
be th e sole objectives. A span of y ears
is b u t a sh o rt tim e in th e corporate
existence of a good b an k in a com­
m unity. A long range view point, a
policy of helpfulness, and a hum ani­
ta ria n outlook w ill do m uch to build
up and im prove th e ru ra l and u rb an
com m unities and pay big dividends in
th e developm ent of its social, indus­
tria l and economic future.

53
In 1882 he settled at G rafton and
began a farm loan business. In 1883
he m arried Nellie May Ash of A lbert
Lea, Minn. The couple continued to
live in G rafton and in 1910 Mr.
Sprague purchased an in te re st in the
F irs t N ational bank. He served as
vice presid en t or president u n til 1926.

NORTH
M ARTIN AAS
President
New Rockford

DAKOTA
NEWS

Tax Measures
On th e ballot a t th e N ovem ber 5
election w ill be tw o new ta x m easures,
to be voted on by th e people, co n tain ­
ing some rev o lu tio n ary changes in
m ethods of tax atio n in N o rth Dakota.
C. C. W attam , secretary of th e N orth
D akota B an k ers A ssociation, in a b u l­
letin to m em bers m akes th e followiiig
com m ents on th e proposed legislation:
“The m easu re changing th e v a lu ­
ation for purposes of tax atio n in ­
crease by 50 per cent th e assessed v alu ­
atio n of farm lands, livestock, city real
estate, tools and m achinery, business
fu rn itu re and fixtures, goods and m e r­
chandise, an d b an k stock. It increases
the assessed v alu atio n of railro ad and
o th er u tilities by 100 per cent, decreas­
ing by 50 p er cent th e assessed v alu a­
tion of farm an d ra n c h equipm ent,
household goods, and p ersonal effects.
The p ro p e rty covered by th ese de­
creases, how ever, am ounts to only ap ­
p ro x im ately $18,000,000.00 out of $450,000,000.00 of th e 1939 valuations.
“The second m easu re on th e ballot
provides th a t th e L egislatu re m ay
ad o p t law s providing for a hom estead
exem ption up to $5,000.00 in value.
Also, th e y m ay enact law s providing
for a g rad u ated land tax. If th e m eas­
u re s are approved and th e L egislature
fails to take action on th e hom estead
exem ption and g rad u ated land tax, it
m eans an increase g en erally of 50 p e r­
cen t in tax atio n th ro u g h o u t th e State.
Should th e L egislatu re tak e action on
th e hom estead exem ption law, th is
w ill close sm all schools and cripple
m unicipal and county g o v ern m en t for
th e reason th a t in 50 p ercen t of th e
tow nships, or b etter, in th e State, no
public u tility ta x m oney is received
and th e increase as to railro ad s and
public u tilities w ould only benefit th e
larg er tow ns and places now gettin g
th e benefit of those taxes. On th e
o th er hand, th is w ould not increase
rev en u e in th e larg er tow ns because
ho m estead exem ption w ould m ore
th a n offset th is increase.
“In 1939, th e v alu atio n of bank stock
for purposes of tax atio n w as $1,215,625.00. If th e reclassification m easure

1941 Convention
C. C. WATTAM
Secretary
Pargo

passes, it w ould be effective in th irty
days and w ould increase th e 1940
v aluation to $1,823,427.00, or an in ­
crease of $607,802.00.
“Also, keep in m ind th a t livestock,
w hich is a grow ing business in N orth
Dakota, also receives a 50 percen t in ­
crease.
“W e are firm ly convinced th a t these
m easures w ill not accom plish w h at the
sponsors claim for them b u t w ill
sim ply re su lt in adding to th e b urden
of taxation. T hey w ill also lift th e
b u rd en off a hom e ow ner or land ow n­
er w ho can and should be able to pay
his sh are of th e costs of schools and
g o v ernm ent and increase th e burden
of th e te n a n t w ho cannot afford such
increase.”

Minot Banker Dies
R obert E. B arron, 66 y ears old,
p resid en t of th e F irs t N ational bank
of Minot, N. D., died recently in N o rth ­
w e stern hospital in M inneapolis after
an illness of several m onths.
He w as a form er presid en t of th e
N o rth D akota B ankers association
and had been head of the M inot in ­
stitu tio n since 1914. He form erly w as
connected w ith th e N ational GermanA m erican b ank in St. Paul, leaving
th e re in 1901 to go w ith th e M inot
bank.

Promoted
A nnouncem ent w as m ade recently
of th e resig n atio n of A. R. W einhandl,
vice presid en t and cashier of th e F irst
N ational B ank of M andan, and his
prom otion to a position w ith th e gen­
eral offices of the N orthw est Bancorporation, w ith h ead q u arters at M in­
neapolis. W einhandl is to be affiliated
w ith th e contact d ep artm en t of the
in stitution.

Dies in Grafton
F ra n k H. Sprague, 83, G rafton, N.
D., pioneer, form er b an k er and prom i­
n e n t in N o rth D akota M asonic lodge
affairs, died in a G rafton hospital of
h e a rt trouble and asthm a. H e had
been ill several years.

The executive com m ittee of the
N orth D akota B ankers A ssociation has
announced th e dates of Ju n e 17th and
18th as th e tim e of th e an n u al conven­
tion of the organization n ex t year. The
convention w ill be held in Bism arck.

Free Enterprise Threatened
E n croachm ent of the governm ent on
priv ate finance th re a te n s the v ery
existence of free enterprise, E m m ett
F. Connely, presid en t of th e In v est­
m ent B ankers A ssociation of Am erica,
w arn ed in speaking before th e in vest­
m en t ban k ers of Philadelphia. The
w ar situation, he said, is being used
as a m eans to hasten th e pace of a
“creeping economic paraly sis” th a t is
“slowly stifling the w ay of life w hich
is th e rig h tfu l and autom atic heritage
of A m ericans.”
Speaking before a jo in t luncheon
m eeting of th e Bond Club of P h ila­
delphia and th e eastern P ennsylvania
group of the In v estm en t B ankers As­
sociation Mr. Connely said, “U sing the
defense program as an easy and pop­
u la r excuse, th e proponents of n a­
tional capitalism have skillfully sold
th e public on the idea th a t th e ex­
pediency of th e situ atio n req uires th a t
the R econstruction F inance C orpora­
tion finance in d u stry ’s p rep aratio n for
th e rearm am en t job. So, in a few
sh o rt m onths, th e RFC has authorized
m ore th a n half a billion dollars for
expansion of p lants for defense or­
ders.”
This is not because of any inability
or unw illingness of the in v estm en t
bankers, he stressed. “B ut it m u st be
pointed out,” he said, “th a t p rivate
in v estm en t b anking cannot com pete
w ith th e governm ent th a t reg u lates it
w hen th e governm ent does not subject
itself to th e sam e regulations. Gov­
ernm ent, in its capacity as b an k er does
not use th e sam e stan d ard s th a t it
exacts of th e in v estm en t banking in ­
d u stry .”
A sylum W arden: “So you th in k you
are sane now? If I give you y o u r free­
dom, w ill you leave liquor and wom en
alone?”
Inm ate: “I sure will!”
W arden: “You’d b etter stay here.
You’re still crazy.”
N orthw estern Banker October 19^0


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

54

MONTANA

NEWS

E TH EL W. W ALKER
Secret a ry-T rea su rer
Helena

K. D . M OUNTAIN
President
Conrad

G oes to Minneapolis
A llen G. M iller has resigned as as­
sista n t cashier of th e N ational P a rk
B ank in L ivingston to accept a posi­
tion in the cred it d ep artm en t of the
head offices of the F irs t B ank Stock
C orporation group a t M inneapolis, offi­
cials of th e local in stitu tio n a n ­
nounced. The resig n atio n w as ac­
cepted by the board of d irectors of the
bank.
C. W. Davis and W. S. D ew ing have
each been prom oted to a ssista n t cash­
ier, th e d irectors announced.
Mr. M iller has been em ployed in the
local b ank since 1930 and has been
a ssista n t cashier since Ja n u a ry 26,
1934. He has been a leader in civic
and fra te rn a l organizations for a n u m ­
b er of years. He is a p ast p resid en t of
th e L ivingston K iw anis Club and is a
m em bers of th e L ivingston E lks
Lodge.
Mrs. M iller has been a resid en t of
L ivingston m ost of h e r life.
Both Mr. Davis and Mr. Dewing

have been em ployed in th e N ational
P a rk B ank for a n u m ber of years.

Buy Stillwater Bank
P u rchase of th e assets of th e Still­
w ater N ational B ank by the Yellow­
stone B ank w as announced by B. M.
H arris, presid en t of the la tte r in sti­
tution. T his m akes the Yellowstone
th e only bank in Columbus, w ith as­
sets of approx m ateiy $1,000,000, P resi­
den t H arris said.
Mr. H arris also is p resident of the
Y ellowstone B ank of L aurel. J. W.
C orw in is vice presid en t of both in sti­
tutions. T hey said th e Yellowstone
banks of Colum bus and L aurel now
have assets of approxim ately $1,750,000.
The fo reru n n er of the Yellowstone
B anks of today w as the P a rk City
S tate Bank, opened at P ark City in
1907 w ith a capital of $25,000. H arris
w as w ith the in stitu tio n at th e start,
and Corwin, at th a t tim e in th e m er­
cantile business at P a rk City, extended
his in terests to the banking field and

R o u t e y o u r W is c o n s in ite m s

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

T his bank is the largest in the Wisconsin-Iowa-Dakota-M innesota area . . . serving
m ore than 500 W isconsin correspondents — as­
suring you prom pt,efficient collection o f W iscon­
sin checks and drafts. Your inquiries are invited.

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

F ir s t W is c o n sin N a tio n a l B a n k
Resources over $250,000,000
M E M B E R OF T H E F E D E R A L D E P O S I T I N S U R A N C E C O R P O R A T I O N

N orthw estern B anker October 19k0

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Federal Reserve Bank of St. Louis

o f M ilw a u k e e

v

M1

becam e affiliated w ith it a couple of
y ears later. The in v estm en t w as in ­
creased from tim e to tim e u n til the
bank today has a capital stru c tu re of
$120,000. The P ark City B ank w as
m oved to Colum bus in 1934, and be­
cam e the Yellowstone B ank of th is
city.
The sam e y ear the F irs t N ational
B ank of Rapelje, form erly headed by
W. J. Soderlind, now of Billings, w as
m oved to Colum bus and becam e th e
Stillw ater N ational Bank, w hich the
Yellowstone purchased. The Stillw ater
president, E dw in Grosfield, is retirin g
from th e banking field to give his en ­
tire a tten tio n to his farm ing and live­
stock interests.
R. L. Duba, cashier of the S tillw ater
Bank, becam e an a ssistan t cashier of
th e Yellowstone Bank, of w hich L. J.
W allace is cashier and B. M eyer H a r­
ris and Irv in M. Black are a ssistan t
cashiers.
D irectors of the Yellowstone B ank
of Colum bus are th e tw o H arrises,
fa th e r and son, Corwin, W allace and
M. E. Slayton. T hey and J. W. F ry
of L aurel and G. H. Jacobus, N o rth ern
Pacific railw ay su p erin ten d en t at Du­
luth, Minn., co n stitu te th e board of the
Yellowstone B ank at Laurel.

Common Stock Increase
L aurance A rm our, chairm an of La
Salle N ational Bank, announced last
m onth th a t th e directors authorized
th e calling of a special stockholders’
m eeting, held Septem ber 12, 1940, for
th e purpose of voting upon a 50 per
cent increase in the b a n k ’s o u tstan d ­
ing com m on stock. An o p p o rtunity
w as given to p resen t stockholders to
purchase one share of th e new com­
m on stock for each tw o shares of
com m on stock, at th e price of $75 per
share. T his is the sam e price at w hich
th e group ow ning a m ajo rity of the
o u tstanding com m on stock of the bank
paid for a controlling in terest last
Jan u ary . T his group acquired the
controlling in te re st w ith the idea of
m oving the bank into The Field B uild­
ing. Mr. A rm our stated th a t all of the
directors had subscribed for th e ir pro­
portionate share of the new stock and
th a t any of th e new stock not taken
or subscribed for by th e presen t stock­
holders had already been spoken for.
The purpose of increasing the capi­
tal stru c tu re of La Salle N ational B ank
is in order to take advantage of the
enlarged o pportunities w hich are an ­
ticipated w hen located in its new
q u arters in The Field Building. Sat­
isfactory progress is being m ade by
the Field E state in the p rep aratio n of
these q u a rte rs and it is th o u g h t th a t
th ey w ill be ready for occupancy the
later p a rt of October.

55
th e follow ing board of directors: O. E.
Davis, Chas. J. W alberg, R. A. Daed­
low, Clell B reder and N. B. W ilson.

Banker Is 82

IO W A

N EW S

H . R. YOUNG
President
Arlington

Department Moves
T he first of several stateh o u se office
m oves w as com pleted w hen th e state
ban k in g d e p a rtm e n t m oved from th e
capitol building to 411-420 V alley B ank
building. T he d e p a rtm e n t is all set
for business in its new q u arters, R alph
L. Bunce, dep u ty su p e rin te n d e n t of
banking, said.
T he space vacated by th e ban k in g
d e p a rtm e n t’s m ain offices w ill be oc­
cupied by th e sta te board of parole,
w hich w ill m ove dow n from its p re s­
e n t th ird floor offices in ord er to v a ­
cate th e legislative com m ittee room
ond offices of th e sp eak er of th e house
and th u s m ake those room s available
for th e 1941 legislature.
The space hereto fo re occupied by
th e receiv ersh ip division of th e b an k ­
ing d ep artm en t w ill be ta k e n over by
th e Iow a State F a ir board and th e
fair b o ard ’s p re se n t offices w ill in tu rn
be tak en by th e anim al in d u stry divi­
sion of S ecretary of A g ricu ltu re M ark
T h o rn b u rg ’s offices.

In Sioux C ity Bank
F ra n k L. Cash, S pencer in su ran ce
salesm an, and ow ner of th e Cash In ­
su ran ce agency of Spencer, has ac­
cepted a position w ith the L ivestock
N ational B ank of Sioux City as head
of th e b an k in su ran ce departm en t.
Cash cam e to S pencer in 1936 as
d istrict m an ag er for th e C entral Life
In su ran ce Com pany of Des Moines,
and la te r opened an office h an d lin g a
general line of insurance. Mrs. G eor­
gia Cash, assisted by D elbert M cHugh,
w ill have charge of th e In su ran ce
agency in Spencer d u rin g Mr. C ash’s
absence in Sioux City.

W age and Hour Law
and the A.I.B.
T h ere seem s to be a question in th e
m inds of a good m any Iow a b an k ers
as to in w h a t category th e stu d y and
classroom activ ities of A m erican In ­
stitu te of B anking stu d e n ts falls, in
connection w ith in te rp re ta tio n of the

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Federal Reserve Bank of St. Louis

PRANK W ARNER
Secretary
Des Moines

W age and H our law. It w ould appear
from an opinion recently handed
dow n by George A. M cNulty, general
counsel in th e W age and H our Divi­
sion of th e U. S. D epartm ent of Labor,
th a t em ployers are not liable for pay­
m en t of tim e so consum ed by th e
A. I. B. student. A p e rtin e n t p a ra ­
g rap h of his opinion reads as follows:
“In some cases em ployes atten d
public schools or take reg u lar courses
in a recognized u n iv ersity or o ther
in stitu tio n of learning. The courses
given are p a rt of a stan d ard c u rricu ­
lum and are not designed solely to ac­
com m odate th e req u irem en ts of any
p a rticu lar plant. Thus, for exam ple,
a teller in a bank m ay take a u n iv e r­
sity course on th e financial policy of
corporations, or a m echanic in a fac­
to ry m ight take a course in d ra fts­
m anship or physics. In these cases
th e subject m a tte r of th e course im ­
pinges on th e general subject m a tte r
of th e em ploye’s job and m akes him
m ore v ersatile and b etter qualified to
assum e additional responsibility. The
in struction, how ever, has no neces­
sary and im m ediate relation to the
p a rticu lar w ork done by th e em ­
ploye and he does not, of course, en­
gage in any productive w ork d uring
th e tim e spent tak in g th e course. In
o u r opinion tim e spent by em ployes
a fte r reg u lar w orking ho u rs in a t­
ten d ing lectures at, or in studying cor­
respondence courses given by a pub­
lic school, u n iv ersity, or o th er in stitu ­
tio n of learning (even if the em ployer
pays th e necessary tu itio n ) will not
be considered directly ‘related to the
em ployer’s w o rk ’ w ith in th e m eaning
of p a rag rap h 15 and, if attendance is
vo lu ntary, w ill not be considered as
‘h o u rs w o rk ed ’.”

New Bank
T he new M ediapolis Savings B ank
opened for business recently in the
fo rm er M ediapolis State B ank p ro p ­
erty. Officers are N. B. W ilson, p resi­
dent; R. A. Daedlow, cashier; T. R.
R ichardson, a ssistan t cashier.
The new in stitu tio n sta rts out w ith

H en ry G uenther, a Clinton county
b an k er 57 years, celebrated his 82nd
b irth d ay an n iv ersary a t a d inner
given by his daughter, Mrs. A rth u r
B aum gart, Des Moines, for eight
friends. Am ong th e guests w ere Mr.
and Mrs. W alter Thiele, Keokuk. Mr.
T hiele is a form er W heatland banker.
Mr. G uenther w as born in F reeport,
111., Sept. 20, 1859, and in 1877 opened
a dru g store in W heatland w hich he
operated u n til 1883 w hen he becam e
cashier in th e new bank, in th e or­
ganization of w hich he w as a leader.
In 1896 th e firm of Jo h n L. G uenther
an d Sons w as established as a priv ate
bank. In 1910 he w as elected p resi­
dent and several y ears ago becam e
chairm an of the board and ho n o rary
president.

Hours Changed
W. E. Crum, jr., p resid en t of th e
Bedford N ational Bank, has an ­
nounced a change in th e banking
h o urs w hich, because of th e term s of
the national W age and H our Law, be­
comes effective October 1.
The change, Crum said, is th a t th e
b ank will not open in th e m ornings
u n til 9:30 o’clock. H eretofore th e
opening tim e w as 9:00 a. m.

Teaches Class
K arl Kalde, vice presid en t of th e
State Savings Bank, Council Bluffs,
w ill teach a class in negotiable in stru ­
m en ts for th e Omaha ch ap ter of th e
A m erican In stitu te of B anking classes
w hich opened the w eek of Sept. 23.
T he in stitu te has 385 ch apters w ith
m em bership of 67,500 of w hich 41,000
are enrolled in classes. R alph S torrs
of th e City N ational Bank, Council
Bluffs, w as elected recently to th e
board of governors of th e Omaha
chapter.

To Buy Bonds
The D em ocratically-controlled fed­
eral governm ent is going to sell the
Iowa R epublican state adm in istratio n
about $700,000 w o rth of bonds som e­
tim e soon.
State T re a su re r W. G. C. Bagley
says the sinking fund, w hich once w as
22 m illion dollars in th e red, now has
a balance of nearly $1,400,000.
The law req uires th a t $500,000 be
k ep t on h an d as a w orking balance.
A nother $155,000 is ear-m arked for the
p aym ent of claim s left over from the
closed b ank era and th e re st m ust be
invested in governm ent bonds.
N orthw estern B anker October Í9k0

TO HEAT, LIGHT, AND
Iowa Homes Business and Industry
■"T 1

U p p e r l e f t — T h e D e s M o i n e s p l a n t of I o w a
P o w e r a n d L i g h t is o n e of t h e l a r g e s t in
t h i s p a r t of t h e c o u n t r y .
U pper R ight—
A r t i f i c i a l or n a t u r a l g a s is a v a i l a b l e in 103
I o w a to w n s . C e n t e r l e f t —^T he i n t e r i o r of
a m o d e r n p o w e r p l a n t is a p i c t u r e of c l e a n c u t effi cie
nc y.
C e n t e r R i g h t — T h o u s a n d s of

m i l e s of p o w e r l i n e n o w n e t w o r k I o w a .
L o w e r — M o d e r n l a r g e c oa l m i n e s a r e effi­
https://fraser.stlouisfed.org
c i e n t — d e l i v e r b e t t e r fuel

Federal Reserve Bank of St. Louis

POWER
Homes to be heated and lighted, meals to be cooked—but a
few short years ago involved hours in the woodlot with an ax,
and the purchase of a few gallons of “ coal oil” .
Today, the supplying of fuel, light and power to homes anti
industries has become a major Iowa business.
Fuel—coal and oil— is the background of the picture. Iowa’s
450 coal mines in 1939 mined approximately 3,100,000 tons,
worth at the mine about $10,000,000, nearly 75 per cent of which
went to wages of approximately 8,000 employes.
Iowa produces only about 40 per cent of the coal it uses. More
than 4,000,000 tons come from other states annually. Iowa uses
about 7,000,000 tons per year— a solid trainload more than 1,300
miles long. Iow a’s yearly coal bill is nearly $30,000,000.
About 2,500 dealers, employing better than 15,000 people,
distribute this coal. Fuel oil, too, has become an important fac­
tor in home heating. Its distribution involves approximately
1,000 dealers. The more than 60,000,000 gallons per year con­
sumed in the state cost in the neighborhood of $4,000,000.
Iowa utility plants— including privately owned electric and
gas plants, natural gas distributors and municipally owned
plants— do an annual business of nearly $75,000,000. They pay
approximately $22,000,000 in wages to some 12,000 or 13,000
employes. Many more workers receive income through con­
tract construction work.
Utilities use nearly 2,500,000 tons of coal in their operations,
paying better than $7,500,000 for it. State taxes are approxi­
mately $5,000,000 and federal $4,000,000.
Approximately 70 per cent—-nearly 440,000—of the homes
in the state have electric service. About 40,000—and the num­
ber is rapidly increasing—are on rural lines. In addition to
homes, power companies supply 92,563 small commercial users,
1,522 large commercial users, 853 street lighting systems and
almost 1,000 other public authorities, and four of the interurban
railways in the state. Some 103 towns in the state are served
with gas.
Available, well distributed power, light and fuel have been
a big contributing factor toward the advanced American stand­
ard of living. Constantly improving service and lowered costs
continue to further this advance.

Improved, stepped-up banking facilities such as those offered
by Bankers Trust Company, have helped to speed the trans­
action of business, just as improved power and fuel distribution
have helped improve living and working standards. Bankers
Trust Company welcomes the opportunity to make its facilities
available to the many banks which have named it their Des
Moines correspondent.

BANKERS TRUST
COMPANY

6th and Locust Streets
Des M o i n e s , I o wa

Member Federal Deposit Insurance Corporation


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Federal Reserve Bank of St. Louis

Member Federal Deserve System

58

Seen and Heard at the

1940 Iowa
H. RICH, p resid en t of th e Poca. hon tas State B ank has ju s t com ­
pleted 66 consecutive years of active,
Iow a ban k in g and a t 91 y ears of age
is still in excellent health.
D uring his b an k in g career he has
been in te re ste d in over 40 b an k s in
Iow a and so u th ern M innesota.
In 1874 in A uburn, N ew Y ork he
gave up his duties as teleg rap h dis­
p atch er to e n te r ban k in g business.
In his g reetin g s to th e y ounger
bank ers in th e speech w hich he m ade
a t th e state convention he said, “I
w ish th e new gen eratio n of b an k ers
th e v ery best of success.”

E

A. T. D onhow e, vice p resid en t of
th e C entral N ational B ank and T ru st
Com pany, presided v ery effectively as
p resid en t of th e T w en tieth A nnual
S tate C onvention of th e Officers of
th e C ounty B ankers A ssociation of
Iow a d u rin g th e state convention.
The g eneral topic of th e m eeting w as
“Still More Profitable B ank O pera­
tio n .”
M arshall R. D iggs, executive vice
p resid en t of th e T rav elers C redit Cor­
p o ratio n of W ashington, D. C., spoke
for 25 m in u tes on “T ravel on C redit”
or “B ankers O pportunity of C ooperat­
ing w ith a M ajor In d u s try ”.
Mr. Diggs w as form erly acting com p­
tro lle r preceding th e ap p o in tm en t of
th e p resen t com ptroller, P reston D e­
lano.

Mr. Diggs said th a t th e average ra il­

road ticket on w hich loans w ere m ade
w as $100, although loans are m ade for
trav elin g purposes from $50 up. “I
am not inclined to say,” said Mr. Diggs,
“th a t it is good to buy on tim e, b u t
I am saying th e public has been edu­
cated to spend now and pay later—
form erly we saved first and spent
later, b u t this plan has been reversed.”
C. AV. A nderson, vice p resid en t and
cashier of th e City S tate B ank of
M adrid, p resen ted ch arts to show “Our
K ind of A nnual R eport to Our Stock­
h o lders”. H is b ank has 52 stockhold­
ers and he tells them w ith pictures,
ch arts and illu stratio n s ju st w h at the
b an k has been doing so th a t th ey in
tu rn can tell th e ir friends and help
increase th e b a n k ’s business.
Clay W. Stafford, cashier of the
Ames T ru st and Savings Bank, and
H. Lee H uston, cashier of th e Colum­
bus Ju n ctio n State Bank, gave a “duet
speech,” in w hich th ey asked and an ­
sw ered each o thers questions based
on th e ir re p o rt of th e wage and hour
h earin g in W ashington. T his w as a
clever p resen tatio n and w ell done.
AAill A. Lane, presid en t of th e Se­
c u rity Savings B ank of M arshalltow n,
in discussing “N ational Defense Loans
—H ow Can Iow a B anks H elp?” said
“Our destiny is not an involvem ent in
th e p resen t E u ropean conflict. Our de­
fense of th e U nited States m ust be
second to none, b u t we can best serve
m ankind by rem aining a t peace.”

A T TH E IO W A
B e a d in g fro m le f t to r ig h t: 1— D ave B ates, Io w a b a n k in g
com m issioner, D es M oines; C. B. M ills, M oline, Illin o is, Io w a
A sso c ia tio n p re s id e n t in 1902; a n d D ick G ossett, Sioux C ity.
2— Frank Y etter, D a v e n p o rt, p a s t p re s id e n t in 1921; Charles
W ohlenberg, H o lste in , a n o th e r A sso c ia tio n p a s t p re s id e n t; an d
G eorge Schaller, F e d e ra l R eserv e G overnor, C hicago. 3— W. G.
C. B agley, also A sso c ia tio n p a s t p re sid e n t, a n d tre a s u re r of
Io w a ; C. C. Jacobsen, W ash in g to n , D. C., a n o th e r p a s t p re s id e n t;
a n d Iv a n H asbrouck, D es M oines, also a p a s t p re sid e n t. 4—
H enry F. Kremer, p re s id e n t D y e rsv ille N a tio n a l B a n k ; D. J.
V an L iew , d ire c to r C a p ita l C ity S ta te B a n k , D es M oin es; a n d
Guy M. B utts, c a sh ie r E x c h a n g e S ta te B a n k , W esley. 5— Mrs.
A . H. M anley, D es M oin es; Mrs. W. E. ( “ C y ” ) W horrall an d
Mrs. E arle N ew ton , b o th o f B e a m a n ; Mrs. A. F. A gena, G a rw in ;
Mrs. E. S. P itm an, S ta te C e n te r; a n d Mrs. H. L. R etinger,
K a n s a s C ity. 6— E. O. N erv ig , v ice p re s id e n t F i r s t N a tio n a l,
H u m b o ld t; a n d R ay M iller, c a s h ie r C a p ita l C ity S ta te B a n k ,
D es M oines. 7— Ed E bersole, c a sh ie r S ta te C e n tra l S a v in g s

N orthw estern Banker October 19W

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

Convention
L ehm ann P lum m er, vice presid en t
in charge of th e personal loan d ep art­
m ent of th e C entral N ational B ank
and T ru st Company, \AT. G. N elson, as­
sistan t cashier of the Live Stock N a­
tional B ank of Sioux City, K. A.
Coates, cashier of the Peoples Savings
B ank of C raw fordsville, H. L. Ollenhurg, vice presid en t and cashier of the
H ancock County N ational B ank of
G arner, and John T. H am ilton, II, vice
presid en t of th e M erchants N ational
B ank of Cedar Rapids, conducted a
panel and discussed in stallm en t lend­
ing in a v ery in terestin g and enlig h t­
ening m anner.
F rank W arner, secretary of the Iowa
B ankers A ssociation, w as given a
ro u n d of h e a rty applause a t th e open­
ing of the m eeting of th e Officers of
the County B ankers A ssociation w hen
A rthu r D onh ow e said, “We w an t to
express our appreciation to Frank
W arner for th e excellent and efficient
w ork w hich he has done in arran g in g
for th is m eeting.”
Charlie C. Jacobsen, director of the
regional ag ricu ltu ral credit division of
th e F a rm C redit A dm inistration at
W ashington, spoke on “A gricultural
C hattel L oans” and said th a t th e cor­
porations u n d er this division w hich
w ere placed in liquidation in May,
1934, m ade loans to nearly 200,000
individuals an d for a total am ount of
$328,000,000. T here is still an uncol­
lected balance of loans of about 7%

C O N V E N T IO N
B a n k , K e o k u k ; a n d S. R. Torgeson, c a sh ie r F a rm e rs & M e r­
c h a n ts S ta te , L a k e M ills, b o th p a s t p re s id e n ts of th e Io w a
A sso c ia tio n . 8— M el E llis, p re s id e n t F i r s t S e c u rity S ta te ,
C harles C ity ; F rank Fuchs, a s s is ta n t c a sh ie r F i r s t N a tio n a l, St.
L o u is; A. G. Sam, p re s id e n t F i r s t N a tio n a l, Sioux C ity ; and
Don H arper, a s s is ta n t c a sh ie r F i r s t W isco n sin N a tio n a l B a n k ,
M ilw au k ee. 9— U ale Bee, G ru n d y N a tio n a l B a n k , G ru n d y C en­
te r ; A. O. Cannon, c a sh ie r C rom w ell S ta te S a v in g s B a n k ; K en ­
n eth B illin gs, a s s is ta n t vice p re s id e n t C ity N a tio n a l, C hicago;
a n d T. J. N eessen , c a s h ie r G ru n d y N a tio n a l, G ru n d y C en ter. 10
— F rank W elch, p re s id e n t P e o p les S a v in g s, C e d ar R a p id s, and
F rank Kauffm an, p re s id e n t B a n k e rs T ru s t C om pany, D es
M oines, b o th p a s t p re s id e n ts o f th e Io w a A s so c ia tio n ; a n d E. H.
Rich, p re s id e n t P o c a h o n ta s S ta te B a n k , a c tiv e as an Io w a b a n k ­
er fo r m ore th a n six ty -six y e a rs. 11-—A. J. B ertelsel, c a sh ie r
M o rn in g sid e S a v in g s, Sioux C ity ; a n d M. C. Eidsm oe, p re sid e n t
W o o d b u ry C o u n ty S a v in g s B a n k , S ioux C ity.

N


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Federal Reserve Bank of St. Louis

60

•
m illion dollars; 96.7 p er cent of th e
loans have been paid in cash and 7/10
of 1 p er cent have been charged off
as determ ined losses; 2/10 of 1 per
cent has been tra n sfe rre d to real and
personal p ro p e rty account and th e u n ­
collected loans o u tstan d in g am o u n t to
2.4 p er cent.
“In o th er w ords,” said Mr. Jacobsen,
“the v e n tu re w ill have been conducted
at p ractically no loss to th e gov ern ­
m en t b u t to th e g reat benefit of farm s
and stockm en.”
C. J. W ohlenberg, w ho w as p resid en t

/^ \ U R

IOWA

NEWS

•-

of th e Iowa B ankers A ssociation in
1925 attended the convention th is year
and bro u g h t w ith him Mrs. W ohlen­
berg and his daughter, Mrs. Crow. Mr.
W ohlenberg still lives at H olstein,
Iowa, w here he w as in th e active b an k ­
ing business for m any years.
The convention w as saddened by the
an n o uncem ent of th e sudden death
of John H. H ogan, vice presid en t of
th e C ontinental Illinois N ational B ank
and T ru st Com pany of Chicago. Be­
fore going to Chicago, Mr. H ogan w as
in th e banking business in Des Moines

w ith th e old G erm an Savings Bank
and later w ith th e Des Moines N a­
tional Bank and had m any friends
th ro u g h o u t th e Middle W est and the
U nited States w ho w ere saddened by
his u n tim ely death.
E. N. Van H orne, executive vice
president, O. P. D ecker, vice president,
C harles C. K uning, a ssistan t vice p resi­
dent, and Jam es H. Clarke, assistan t
vice p resident of the A m erican N a­
tional B ank and T ru st Company of
Chicago, e n tertain ed th eir banker
friends at a very fine b reak fast on
Tuesday m orning of the Iowa B ank­
ers Convention. T his is an ann u al
“tre a t” w hich has proven very popu­
lar w ith the invited guests and bacon
and eggs w ith all th e trim m ings w ere
served from 8:00 to 10:00 a. m.
George M alcolm , vice p resid en t of
th e D rovers N ational Bank, Chicago,
called at our office to extend his greet­
ings and left a package of his “age
card s”. If you h av en ’t received a
package of these w rite George for
some as th ey are v ery clever and you
can have a lot of fun w ith them .

S io u x C ity location, where Iow a's only

P rim ary livestock market is situated, enables
the F irst National B an k of S io u x C ity to be of
unusual service to you and your customers.
Let us look after your livestock items, with the same
speed and precision that characterizes all correspond­

The large type w hich w as used for
the convention badges th is year cre­
ated a g reat deal of favorable com m ent
by all of the ban k ers p resen t and w as
referred to especially by H. B. H am ­
mer, executive vice p resident of the
State B ank of W apello and secretary
of the Officers of th e C ounty B ankers
Associations. E verybody could call
everybody else by th e ir rig h t nam es
w ith o u t having to look tw ice to see
w ho th ey w ere.

ent service at this bank.

O F FIC E R S
A. S. H A N F O R D
P resident

J. R. G R A N IN G
A ssista n t Cashier

A. G. SAM
V ice President

E. A. JO H N S O N
A ssista n t Cashier

J. T. G R A N T
J. P. H A IN E R
A ssista n t Cashier
V ice President
F R IT Z F R IT Z S O N , V ice President & Cashier

F ran k F u ch s, a ssistan t cashier of
th e F irs t N ational Bank, St. Louis, a
peren n ial Iowa convention-attender,
w as on h an d as usual, this tim e w ith
Mrs. F uchs, w ho enjoyed the fine en­
te rta in m e n t provided for th e ladies.
T h eir son, Frank, Jr., is about to m ake
Des M oines his business headquarters,
since he trav els Iow a for th e McQuayN orris Company.

F o r th e first tim e in years, Carl
of the Live
Stock N ational, Sioux City, m issed th e
Iowa convention, due to th e pressure
of business at home. The Live Stock
N ational, how ever, w as ably re p re ­
sented by M. A. W ilson, vice president
and cashier, w ho is a fam iliar figure at
all such conventions.
As usual, Iow a ban k ers enjoyed the
buffet luncheon served by th e F irst
N ational and th e D rovers N ational
B anks of Chicago, and the L ive Stock
F redrick sen, p resident

BANK
IN S I O U X C I T Y

N orthw estern B anker October 194-0

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

_

61
•
N ational of Sioux City, w hose officers

d o n ap ro n s and p u t out th e v ery best
of cu lin ary service.
Ira W right, tr u s t officer for th e Cen­
tra l N ational of Des Moines, w as on
th e job a t th e Iow a convention w ell
tan n ed and follow ing fifteen days m ili­
ta ry tra in in g recen tly at F t. Snelling,
M innesota. Ira is a captain in th e
R eserve Corps an d is n a tu ra lly deeply
in terested in n atio n al defense p re p a ra ­
tions.
C. F. H arris, vice p resid en t of th e
S tate B ank of G ladbrook, Iowa, w as
hap p y to be a t th e Iow a m eeting fol­
low ing a m o n th of ill health, d u rin g
w hich he h ad to avoid b an k in g duties.
He expects, how ever, to be back on the
job from now on.

An Iow a boy w ho m ade good in the
big city is P hilip L. B urget, now m an ­
ag er of th e C redit D ep artm en t of th e
N o rth e rn T ru st C om pany of Chicago.
P hil atten d ed th e Iow a convention.
He is from M ontezum a, Iowa, and a t­
tended school a t G rinnell. A nother
Iow a m an from G rinned, holding a
sim ilar position w ith th e H a rris T ru st
an d Savings, Chicago, is V in cen t
Yager, a ssista n t vice p resid en t of th a t
in stitu tio n , w ho w as unable to be at
th e Des M oines m eeting.
K ansas City b an k s w ere w ed re p re ­
sen ted a t th e Iow a m eeting. Fred
Brady, vice president, and R ichard L.
D unlap, a ssista n t vice president, re p re ­
sen ted th e Com m erce T ru st and K ear­
ney W ornall, vice president, did the
convention h onors for th e City N a­
tional.
The opening gun of th e convention
w as th e u n u su ally large atten d an ce a t
th e Sunday evening m eeting of th e
Iow a A ssociation of B ank A uditors
and C om ptrollers, w hich sta rte d th e
1940 conclave off in g ra n d style. G.
W. M cSw eeney, sales m an ag er of De
L uxe Check P rin te rs, Inc., gave a talk
on “B ank M erchandising” th a t w as a
whiz, and from ad ap p earances and
questions w hich w ere asked him , his
audience ate it up and w an ted more.
You w ill find his ta lk published else­
w h ere in th is issue.
W e presu m e P h il R. Clarkson, Des
M oines re p re se n ta tiv e of th e w age and
h o u r division, fully explained th a t in ­
tric a te piece of legislation to his lis­
ten ers, b u t in te rp re ta tio n of th e s ta t­
u te is h a rd enough to follow and study
on paper, let alone try in g to have
som eone te d it to you and c a rry ad
th e legal phraseology in y o u r head—
especially w h en th e sp eak er him self
found th a t his ow n figures, w hich he

I O W A

N E W S

•

had prepared him self, didn’t add up.
B ut he, at least, seem ed to know w h at
it w as ad about.
New officers of th e I. A. B. A. C. are
R. Li. Carson, president, auditor IowaDes Moines N ational B ank and T ru st
Company; E. H. K etelsen, vice p resi­
dent, auditor, D avenport B ank and
T ru st Company; and C. R. Colton, audi­
tor, F idelity Savings Bank, O ttum w a.
The board of governors consists of the
above nam ed, and J. E. Sm ith, Live
Stock N ational, Sioux City; E. V. W il­
k inson, U nited B ank and T rust, Mason
City; M arvin Seldon, vice president,
M erchants N ational, Cedar Rapids; and

C

G. R. H ilton, F irst N ational, Creston.
The ann u al m eeting of the Iowa J u n ­
ior B ankers, w ith D ale Sm ith, C entral
N ational, Des Moines, and A. I. B. as­
sociate councilm an for Iowa, presiding
deserved a larg er audience th a n w as
in attendance. The subjects assigned
th e several young speakers w ere ably
discussed, show ing resu lts of th e ir A.
I. B. tra in in g and th e ir in terest in th e ir
chosen work.
The second annual Iowa adding m a­
chine contest took place at the close
of th is session, w ith w in n ers in the
order of th e ir ability as follows: D w ain

l in t o n

, Io

w a

o n th e

M is s is s ip p i R iv e r

—

L in c o ln H ig h w a y

AN IDEAL MANUFACTURING CITY

CHIEF CONCERNS AND PRODUCTS
Clinton C om pany— Corn Syrup, Starches, etc.
Curtis C om panies Inc.— Interior W oodwork, etc.
E. I. du Pont de Nem ours & Co.— C ellophane
Clim ax Engineering C om pany— Engines, Foundry, etc.
Collis C om pany— W elded W ire Products
C ham pion M illing

&

Grain Co.— Livestock & Poultry Feeds

Clinton Bridge W orks— Bridges

&

Constructural Steel

Clinton Garment Co.— D resses
Clinton Lock Co.— Locks and Builders' Hardware
Clinton Saddlery Co.— H arness, C an vas Products
Clinton Wire Cloth C om pany— Screens
G atew ay Brewing Co.
Lubbers

&

-fa

Schall C andy Co.

Bell— Fly Swatters and H ardware

Rich M anufacturing C om pany— Toys
Swift

&

Co.— Duck Raisers and Packers

V olckm ann Mfg. Co.— Parlor Furniture

A clean healthful city with fine schools, homes, churches and
recreational facilities
YOU CAN SA FELy RECOMMEND CLINTON*

THE

C i t y N a t io n a l B a n k
CLINTON, IOW A
M em ber of the Federal D eposit Insurance Corporation

N orthw estern Banker October i9't0

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Federal Reserve Bank of St. Louis

62

A T TH E IO W A
R e a d in g fro m le f t to r ig h t: 1— E x h ib it of th e A m e ric a n I n s t i ­
tu te of B a n k in g , to w h ic h c o n v e n tio n v is ito rs w e re c h arm ed bv
LoR ene Sederquist a n d P e g g y Gray, b o th of th e A m e ric a n In stv
tu te o f B usiness, D es M oines. 2— Charles G ossett, p re s id e n t
S e c u rity N a tio n a l B a n k , S ioux C ity, a n d im m e d ia te p a s t p re s i­
d e n t of th e Io w a A s so c ia tio n ; Fred M. M orrison, p re s id e n t V a l­
ley S a v in g s B a n k , D es M oin es; a n d Leo W egm an, p re s id e n t
C itiz en s S a v in g s B a n k , A nam osa.
3-—P. G. Y oung, c a sh ie r
B e n to n C o u n ty S a v in g s B a n k , B la irs to w n ; H arry M eints, D e­
w i t t: J. R. V erm azen, c a sh ie r C helsea S a v in g s B a n k ; a n d J. Y vo
Floerchinger, c a s h ie r D e w itt B a n k & T ru s t C om pany. 4— Mrs.
L loyd Bock, B re n to n S ta te B a n k , D a lla s C e n te r; Mrs. Clyde
B renton; a n d Mrs. Charles Johnson, F i r s t N a tio n a l B a n k , P e rry .
5— H. J. Lamp, v ice p re s id e n t B e n n e tt S ta te B a n k ; J. G. Engel,
c a sh ie r o f th e sam e b a n k ; J. E. Brady, c a s h ie r A k ro n S avings
B a n k ; a n d John Thede, c a s h ie r D ixon S a v in g s B a n k . 6— A. B.
D eering, Jr., a s s is ta n t c a sh ie r B oone S ta te B a n k , an d Mrs.
D eering. 7— M arshall R. D iggs, e x e c u tiv e vice p re s id e n t T ra v ­

Loyd, State Savings B ank, H ornick;
Jean Cosner, C enterville N ational
Bank; M argaret C rewse, C entral N a­
tional B ank, Des Moines; R oberta Musgrave, F irs t N ational B ank, W oodbine;
L. A. R odenbaugh, Iowa-Des Moines
N ational Bank; A. J. H eese, F arm e rs
T ru st and Savings B ank, E arling; Carl
K essler, Iow a S tate B ank, Clarksville;
and V ivian W ax, Rolfe State Bank.

Meeting Changed
An am en d m en t to th e articles of in ­
corporation of th e S ecurity Savings

C O N V E N T IO N —

<*►

e le rs C re d it C o rp o ra tio n , W a sh in g to n , D. C.; K. J. M cDonald,
p re s id e n t Io w a T ru s t & S a v in g s B a n k , E s th e rv ille ; a n d H. B.
Hammer, e x e c u tiv e v ice p re s id e n t S ta te B a n k of W apello. 8—
R. L. Carson, D es M oin es; E. H. K etelsen , D a v e n p o rt; an d C. R.
Colton, O ttu m w a ; p re s id e n t, v ice p re s id e n t a n d s e c re ta ry -tre a s ­
u re r, re sp e c tiv e ly , of th e Io w a A s so c ia tio n of B a n k A u d ito rs
a n d C om ptrollers. 9— N . E. Brear, d ire c to r H a n co c k C ounty
N a tio n a l, G a rn e r; R ay Ford, also a d ire c to r of th e H a n co c k
C o u n ty N a tio n a l; a n d H. L. Ollenburg, vice p re s id e n t a n d c a sh ­
ie r o f th e sam e b a n k . 10— A u stin K in g a n d H om er P eterson
of th e U n ite d S ta te s C heck B ook C om pany, O m aha; A. J. H eese,
a s s is ta n t c a sh ie r F a rm e rs T ru s t & S a v in g s, E a rlin g ; J. E. Brady,
c a s h ie r A k ro n S a v in g s B a n k ; B. J. M acC artney a n d Bob Inness,
U n ite d S ta te s C heck B ook C om pany, O m aha. 11— D. 0 . F arley,
c a s h ie r B lue G rass S a v in g s B a n k ; George M alcolm, v ice p re s i­
d e n t a n d c a sh ie r D ro v e rs N a tio n a l B a n k , C hicago; George Lenhard, c a sh ie r F i r s t N a tio n a l, W h e a tla n d ; a n d M. C. Erusha,
c a s h ie r F a rm e rs S a v in g s, W a if or d.

B ank of M arshalltow n, providing for
a change in th e tim e of th e annual
m eeting, w as filed in th e office of th e
county recorder.
T he su b stitu ted article, w hich cov­
ers th e change, provides th a t th e an ­
nu al m eeting “of th e stockholders
shall be held th e second T uesday of
Ja n u a ry , beginning w ith th e y ear
1941,” a t such place in th e city of M ar­
shalltow n “as designated by th e board
of directors, a t w hich tim e stockhold­
ers shall elect a board of directors and
tra n sa c t such o th er business as m ay
law fully come before th em .”

In Illinois Bank
R. C. B rogm us, form er vice p resi­
dent of th e Red Oak N ational Bank,
has been elected vice presid en t and
cashier of th e Citizens State B ank at
D ow ners Grove, 111., and w as directly
in charge of th e new in stitu tio n ’s
opening recently. Mr. B rogm us w as
cashier at DeKalb, 111., afte r leaving
Red Oak.
D ow ners Grove is located about 25
m iles so uthw est of Chicago and is a
com m unity of n early 9,000 population.
It has m an u factu rin g industries.

Iowa Vice President
H.
J. Stuhlm iller, presid en t of the
State Savings B ank of Fontanelle,
w as elected vice p resid en t and secre­
ta ry of th e Iow a B an k ers’ A ssociation
a t th e an n u al convention in Des
Moines.

PERSON
AL
CONTACT-

Dies in Sioux C ity

Our clo se personal contact with Iow a
bankers— and our sincere interest in
their various problem s, h elp s m ake it
p o ssib le for us to render an unusually
helpful, personal type of service.

ALLEY
A V IN G S B A N K
D E S

M O I N E S

M em ber F ed era l D e p o sit Insu ran ce C orporation

N orthw estern B anker October 19k0

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Federal Reserve Bank of St. Louis

D eath cam e recen tly to Charles G.
Low ery, 68-year-old inv estm en t b an k ­
er, a t his hom e in Sioux City follow­
ing a long illness. He operated the
firm w hich b ears his nam e, Charles
G. L ow ery Co., in th e Toy building.
Mr. L ow ery w as born in M arch,
1872, in M arshalltow n. As a y outh
w ith his perents, he m oved to Des
Moines and atten d ed D rake U niversity
there. L ater he resided in Oklahom a
City and in 1914 he came to Sioux
City.

Bank Absorbed
The Iowa S tate B ank of M orning
Sun has ta k e n over th e business of
th e M ount Union, la., bank.
An office has been established in
M ount U nion w ith W. E. B uchanan,
form er cashier of th e M ount U nion
Bank, as m anager.
The c h a rte r of th e M ount U nion


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Federal Reserve Bank of St. Louis

64

•
B ank expired and it w as decided not
to renew .
All deposits of the M ount U nion
B ank w ere assum ed by th e Iow a State
Bank, w here th e y are in su red by the
F ed eral D eposit In su ran ce Corp. to
the am ount of $5,000 to each depositor.

Eldora Change
H ard in g
th e nam e
com bined
B ram w ell,

C ounty Savings B ank is
selected for E ld o ra ’s new
bank, according to W. K.
one of th e new ow ners.

IOWA

NEWS

•

The business of both the H ardin
C ounty N ational and the Citizens Sav­
ings B ank is being tran sacted a t the
H ard in C ounty N ational building.
The new bank is keeping the Citi­
zens Savings B ank state c h a rte r w ith
a change of nam e.
Officers and directors of the new
b ank are: W. K. Bram w ell, president;
Jam es Nuckolls, vice president; E a st­
m an Nuckolls, vice president; Dana
D. B ram w ell, director; Mrs. M. J.
B ram w ell, director; Mrs. G. C. Bram-

well, vice president; J. F. H ardin jr.,
cashier; H ow ard Calfee, assistan t
cashier; Jo h n C ram er, assistan t cash­
ier; Dora Barz, bookkeeper; Mrs. Glen
Sheldon, bookkeeper; Mrs. H erm an
Tietz, bookkeeper.

Moves to Miami
Clarence S. Rye, form erly in th e
b an king business at N orthw ood, Iowa,
has left for F lorida and is now asso­
ciated w ith th e F irst N ational B ank
of Miami.
T his last sum m er Mr. Rye attended
th e G raduate School of B anking at

PR O F. E B E R S O L E A N D MR. RYE

Partial View of Paying and Receiving Tellers
Commercial Department

Continental I llinois
N ational Bank
and T rust Company
OF C H I C A G O

Member Federal Deposit Insurance Corporation

N orthw estern B anker October 19W

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Federal Reserve Bank of St. Louis

R utgers. The pictu re show s Mr. Rye
w ith P rofessor J. F ra n k lin E bersole
of th e H arv ard School of B usiness Ad­
m in istration, tak en in fro n t of the
B aker library.
P rofessor E bersole has a son and
daughter, both of w hom are stu d en ts
at th e Iowa S tate College at Ames.

A . T. Donhowe Endorsed
W ith th e endorsem ent of his m any
b an king friends, A rth u r T. Donhowe,
vice p resid en t of the C entral N ational
B ank & T ru st Com pany of Des Moines,
has announced him self as a candidate
for th e presidency of th e Iow a B ank­
ers A ssociation a t th e election of offi­
cers to be held a t th e n ex t an n u al con­
vention.
Mr. D onhowe is one of th e best
know n ban k ers of th e state, having

65

O

N AUGUST 22nd, the President of the United States signed
into law an Act of Congress providing for the registration

and regulation of investment companies by the Securities and
Exchange Commission.
It is only natural that we should heartily endorse this legisla­
tion. The Commission invited Investors Syndicate and other
investment companies to cooperate in its development. The new
law represents the combined thinking of both the Commission
and the industry.
We welcome this legislation; we welcome the benefits it will
bring to our company and our contract holders; we welcome
the benefits it will bring to the investment business.
As the largest investment contract company in the field, we are
glad to inform all present and prospective holders of Living Pro­
tection Contracts that Investors Syndicate will conform with this Act.

IN VESTO R S

SYNO I f ATE

M i n n e a p o l i s , M in n es ota

★ ------------------------------------------------------------------------------------------------------------ ★
N o r th w e s te r n B a n k e r O ctober 19W

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Federal Reserve Bank of St. Louis

66

A HE economist, the editor,
the legislator,—each will speak
or write of banking in terms
of loans, credit policies, invest­
ments, and reserves.

been engaged in b anking in various
com m unities for m ore th a n 25 years.
B orn in N o rth wood he first en tered
th e b anking profession a t Thor, in
H um boldt county. In 1915 he entered
th e em ploy of th e R andall Savings
bank, w here he rem ained for eight
years. H e th e n joined th e S tory City
N ational B ank at S tory City, w h ere
he stayed u n til he joined th e C entral
N ational in Des M oines in 1927.
In th e last th irte e n y ears Mr. Donhow e w orked him self up th ro u g h th e
various d ep artm en ts to his p resen t
position as vice president. In th a t

But the daily contact is at the
teller’s window. One customer
in ten may borrow money, but
they all use checks.
A satisfied clientele is the basis
of sound public relations. See
that your check collection serv­
ice leaves nothing to be desired.

... THE ...

P H IL A D E L P H IA
NATIONAL BANK
ORGANIZED 1803

PHILADELPHIA, PA.
Capital, Surplus and Undivided Profits
$43,000,000
Member of Federal Deposit Insurance Corporation

N o r th w e s te r n B a n k e r O ctober 1940

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

A R T H U R T. D O N H O W E

tim e he has extended his already
large acquaintance w ith Iow a b an k ers
to include v irtu a lly every com m unity
in th e state.
A ctive a t all tim es in both state
and county association w ork, Mr. Donhow e in 1937 w as elected secretary
of th e state organization of officers of
th e C ounty B ankers A ssociation. In
1938 he w as elected vice president,
and in 1939 w as prom oted to th e place
of president. In 1938 he also w as
elected State vice presid en t of th e
A m erican B ankers A ssociation. H is
background of b anking and associa­
tion experience m akes him w ell quali­
fied for th e office he seeks.
Mr. D onhow e’s announcem ent is
th e culm ination of a m ovem ent started
to select him as th e nex t presid en t of
th e State A ssociation am ong his m any
friends in th e b ank fra te rn ity of th e
state m onths ago.
Mr. D onhow e’s hom e is in Des
Moines, w here he is active in church,
civic and fra te rn a l affairs. He is a
m em ber of St. J o h n ’s L u th e ra n
church, and of Za-Ga-Zig Tem ple of
th e Shrine.

67

• IOWA
National to State

»

T he F irs t N ational B ank of T h o rn ­
to n officially closed its books and re ­
sum ed b u siness last m o n th as a state
bank. T he estab lish m en t w ill be
kn o w n in th e fu tu re as th e F irs t State
B ank of T hornton.
All deposits and o th er liabilities of
th e old n atio n al b an k have been a s­
sum ed by th e new sta te b an k and all
deposits are in su red by th e F ed eral
D eposit In su ran ce C orporation up to
$5,000 for each depositor.
The change from a n atio n al to a
sta te b an k w as m ade p rim a rily for
th e p urpose of opening an office at
M eservey, w hich is expected to be in
operatio n by N ovem ber. B ranch b a n k ­
ing is n o t p erm itted for natio n al
banks.
No change in th e officers and direc­
to rs w as m ade w h en th e in stitu tio n
changed from a n atio n al to a state
bank.

NEWS

•

K. Bram w ell, w ho resigned th e posi­
tio n to m ove to E ldora to become
p resid en t of th e H ard in County N a­
tional Bank, and to have active charge
of th e bank there.
Jam es H. B oehm ler, w ho has been
cashier of th e b an k in H am pton, w as
nam ed vice p resid en t to succeed Dana
B ram w ell, and Jam es M. Boots, w ho
has been one of th e a ssistan t cashiers
w as nam ed cashier to succeed Mr.
B oehm ler. The full list of officers of
th e b an k is as folows:
P resident, D ana Bram w ell.

Vice P resident, J. H. Boehm ler.
Cashier, Jam es M. Boots.
A ssistan t Cashier, F red A. Keepf.
D irectors: H. E. Boehm ler, Dr. H ow ­
ard H. Johnston, Dana Bram w ell,
Jam es H. B oehm ler, W illis K. B ram ­
well, Gladys Bram w ell, M ildred B ram ­
well.

A.I.B. Speaker
H arold J. M arshall, form er Council
Bluffs m an, w as th e guest speaker re ­
cently at the an n u al d in n er for foreign

Miller Elected
J.
J. M iller, cashier of th e W aterloo
Savings B ank, w as elected a m em ber
of th e executive council of th e A m eri­
can B an k ers A ssociation, a t a m eeting
in co njunction w ith th e Iow a B an k ­
ers A ssociation convention in Des
Moines. H e w ill serve for a threey e a r term .
Mr. M iller w as nam ed by th e Iow a
division of th e n atio n al b a n k e r’s group
to serve on th e executive council
w hich m anages affairs of th e A. B. A.
d u rin g th e year.
H e w as com pleting a y e a r’s te rm
as sta te vice p resid en t of th e A. B. A.
from Iow a, a te rm w hich expired
Sept. 22.
Mr. M iller h as been w ith th e W a te r­
loo Savings B an k since 1906 and has
been cash ier since 1917. H e is also
a d irecto r of th e institu tio n .

Annual Meeting
Chosen officers a t th e a n n u a l stock­
h o ld ers’ m eetin g of th e Peoples State
Bank, M issouri Valley, w ere Dr. J. L.
Tam isiea, president; D. A. S chw ertley,
vice p resident; J. A. K ovar, cashier;
D. F. S chw ertley, a ssista n t cashier,
an d H ow ard W ilding, clerk.
E lected d irecto rs w ere Dr. J. L.
Tam isiea, D. A. Schw ertley, K ath erin e
Schw ertley, F. E. E g an an d J. A.
K ovar.

Change in Officers
A t a m eeting of th e board of direc­
to rs of th e F ir s t N ational B ank, of
H am pton, D ana B ram w ell w as nam ed
p resid en t of th e b an k to succeed W illis

STILL LIFE (Meat Cooling and Aging)
Soon to Be Transported to the Far Corners of the W orld
M eat p roduction is a trem en d o u s b u sin e ss. It
sta rts on th e farm . It e n d s on co n su m ers'
ta b le s from th e Tropics to the A rctic C ircle.
B etw een th e s e tw o e n d p ro c e sse s, it calls
u p o n the se rv ic e s of m ore m en a n d m ach in es
th a n a n y o th er sin g le in d u stry .
The a rtist's sketch, a b o v e , illu stra te d just one
of the m a n y ste p s. H ere a re tons of freshk illed beef, b e a rin g th e g o v ern m en t sta m p
of in sp e ctio n w h ich , a fte r the cooling a n d
a g in g , w ill b e tra n sp o rte d in refrig erato r ca rs

a n d sh ip s to a m y ria d of w h o le s a le o u tlets.
The D rovers N atio n al Bank su p p lie s a w id e
ra n g e of fin an cial se rv ices d u rin g th e s e re g u ­
la r com m ercial p ro c e sse s. Its officers a re
e x p e rie n c e d in e v e ry p h a s e of th e live stock
a n d m e a t p a c k in g in d u stries th ro u g h to th e
ultim ate c h a n n e ls of distrib u tio n . It is lo cated
co n v en ien tly to re n d e r a n efficient a n d h ig h ly
p e rso n a l se rv ic e to co rre sp o n d en t b a n k s
w h o se cu stom ers sh ip to C h ica g o 's g re a t
c e n tra l m ark et.

W e W elcom e Your Inquiry
M em bers F ederal D e p o sit Insurance C orporation

DROVERS NATIONAL BANK
DROVERS TRUST 0 SAVINGS BANK
UNI ON

STOCK

YARDS,

CHI CAGO

N o r th w e s te r n B a n k e r O ctober 1940

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Federal Reserve Bank of St. Louis

68

• IOWA
consuls in th e H otel M cAlpin in New
York City, given by th e New York
ch ap ter of th e A m erican In stitu te of
B anking for m ore th a n 300 consuls
and b anking rep resen tativ es.
M arshall sta rte d his ban k in g career
ten years ago, at th e Council Bluffs
Savings Bank. F rom th e re he w ent
to C anajoharie, N. Y., w here he was
cashier u n til a y e a r ago. M arshall is
now a ssista n t secretary of th e New
York State B ankers A ssociation.

Banks Buy Bonds
S treet im provem ent bonds in the
sum of $11,129.89 w ere sold by the
city of A tlantic to th e W h itn ey Loan
& T ru st Com pany and th e A tlantic

NEWS

•

State B ank at th e ir p ar value, plus
$33.81 in in terest accrued Aug. 1.
The bonds w ill be payable out of
special assessm ents for paving, cu rb ­
ing and g u tterin g , levied on pro p erty
along E ast E lev en th street, South
Olive street and N orth E lm street,
w here im provem ents have been car­
ried out du rin g th e p ast year.

Presidential Candidate
A t th e suggestion of his m any
friends th ro u g h o u t the Iow a banking
fra te rn ity , Max von Schrader, cashier
of th e U nion B ank & T ru st Company,
O ttum w a, has announced him self as
a candidate for th e office of president
of th e Iowa B ankers A ssociation for
the 1941-1942 term .

Mr. Von S chrader becam e an officer
of th e U nion B ank & T ru st Company
im m ediately upon his re tu rn in 1918
from th e W orld W ar, and for the past
tw elve y ears has held an executive
position w ith th e in stitution.
Max von Schrader has alw ays been
active in local, county and group As­
sociation affairs, has been tre a su re r
of the State A ssociation, and has been
serving on S tate com m ittees for the
p ast ten y ears or more. He has taken
an active in te re st in S tate and Fed-

M A X V O N SC H R A D E R

A SOURCE OF FACTS
AND SERVICE
FOR CORRESPONDENTS
Out-of-town banks are here offered a modern means of rein­
forcing their customer-service. And in growing numbers
they are taking advantage of the opportunity. For these
banks receive from The Northern Trust Company assist­
ance which ranges from routine check collections to unusual
and valuable fact-finding. You are invited to acquaint
yourself further with the complete correspondent facilities
and modern methods of this half-century old institution.

eral legislative m atters, and has been
p a rticu larly in terested in problem s of
taxation.
W hile it is fa rth e st from the
th o u g h ts of any of Mr. von S chrader’s
friends to provoke any controversy re ­
garding th e m erits of State and N a­
tional rep resen tatio n in th e Iowa
B ankers A ssociation official family,
they do feel th a t w ith State banks in
Iow a o u tn um bering N ational in stitu ­
tions about five to one, th e form er
have received far from th e ir share in
past selection of individuals to serve
as presid en t of the A ssociation. It
is w ith th is in m ind th a t his friends
p resen t the nam e of Max von Schrader
as a candidate.

O N THE B O A R D W A LK

THE NORTHERN
TRUST COMPANY
50 S O U T H LA SALLE STR EET, C H IC A G O
Member Federal Deposit Insurance Corporation

N o r th w e s te r n B a n k e r O ctober 194-0

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

(C ontinued from page 14)
ing th e convention and no one seem ed
to get sea sick on these trips.
A g e n u in e $100,000 note w as exhib­
ited by th e U nited States Secret Serv­
ice at th e H addon H all Hotel. Also
w ere show n the m ore com m on types
of co u n terfeit issues as w ell as gen­
uine and co u n terfeit coins.

69

• IOWA
R obert M. H ain es, P re sid e n t of the
A.B.A. and A. H arry Moore, G overnor
of N ew Je rse y w ere th e principal
speak ers a t a com bined consolidated
and am algam ated m eeting of all of the
B an k ers w ho w ere m em bers of v a ri­
ous Civic Clubs. T his luncheon w as
held in th e A m erican D ining Room at
th e T ray m o re Hotel. The Clubs in ­
cluded w ere C ivitan, E xchangeite,
K iw anian, Lion, O ptim ist, and Ro­
tarían . T he guests of h onor w ere th e
in-com ing and out-going officers of th e
A.B.A.

NEWS

•

although w e adm it that G overnm ent
aid in the crises has been extended
m ore freely to guarantee big branch
banks 100 per cent than to so guaran-

tee u n it banks. But w e offer this as
an argum ent th at any u nsou nd ness in
big banks in evitab ly co n stitu tes a v a st­
ly greater threat to the national finan-

9 9 o f PAYC accounts
are NEW business,
. . and p ro fita b le fr o m the start!

Senator Carter Glass of V irginia w as

th e guest of h onor a t th e final general
session in A tlantic City. F o r n early 30
y ears Senator Glass has been in te r­
ested in b an k in g legislation and helped
v ery m aterially in d raftin g th e law
w hich created th e F ed eral R eserve
A ct in 1913.
W. H. H em in gw ay, P re sid e n t of the
M ercantile Com m erce B ank & T ru st
Com pany, St. Louis, w as elected to th e
office of Second Vice P re sid e n t of th e
A.B.A., w hen R u ssell Sm ith w ithdrew .

Mr. H em ingw ay’s election w as a
d istin ct triu m p h for th e independent
u n it b an k ers of th e U nited States.

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this new, convenient service. It solves your
“money-order” problem; ends minimum bal­
ance, service charge problems; simplifies ac­
count handling; ends check charge comput­
ing; and provides uniform handling in ad­
vance. Many leading banks now using this
plan. Write today for full details.

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DETAILS TODAY
Get your share of th is sm all depositor
business. W rite today, le t us show
you. PAYC copyrighted but no royalty
charged. Complete details of plan on
request. Address D ept. N W -O .

U n ite d S ta te s C h e c k B o o k Co,
1309-15 HOWARD STREET

•

OMAHA. NEBRASKA

The In depend en t U nit B an ks of
A m erica in th e ir “Credo” published

in th e A m erican B a n ker d u rin g th e
convention am ong o th er th in g s m ade
th is statem en t, “W e hold th at the
record of branch b ank ing in the U nited
S tates con tains no proof of superior
safety or b etter m anagem ent. W e re­
m em ber the recurrent, confidenceshocking, big failu re from 1930 to 1933,
closin g branch banks w ith over 800
branches and over $2,000,000,000 in de­
posits, and forcing resort even tu ally
to G overnm ent casli aid to save n early
as large a num ber. W e say th at this
disproves as false the som etim es-heard
argu m en t that branch banks are of
th em selv es safer than u n it banking.
W e are fam iliar w ith the real record
of branch bank crises and collapses
abroad. W e deny that branch banking
has operated in eith er Canada or E n g ­
land or an yw h ere else, w ith o u t fa il­
ures, and w e hold that unit banking
and branch b ank ing in the U nited
States are on a parity as to soundness,

YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE, VAULT AND
TIMELOCK EXPERTS

A

B a n k e rs B a n k
7

One of our m ajor p o lic ie s is to
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not to compete with them. W e make
special efforts to be helpful. If you
are looking for a bank so organized
that its officers can take a real interest
in your business, you will find your
answer at this institution.

SECURITY NATIONAL BANK
SIOUX CITY, IOWA

F. E . D A V E N P O R T & C O .
OM AHA

N o r th w e s te r n B a n k e r O ctober Î94-0

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

70
cial structure than sim ilar unsoundn ess m ay be in strictly local u n its.”

A G erm an alien nam ed W ilhelm
Jakob M uhlenbroich kidnapped a baby

n o n e tti«
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Federal Reserve Bank of St. Louis

in California b u t he got caught—an ­
o ther G erm an w hose nam e is H itler is
try in g to kidnap th e w orld and we
hope also th a t he gets caught before
it ’s too late.
W . E. Brockm an, vice presid en t of
th e M idland N ational B ank & T ru st
Com pany of M inneapolis w as host at
a lobster, flounder, frogs legs, devil
crabs, shrim ps, oysters and scallops
p a rty a t H a ck n ey ’s du rin g th e Con­
vention. His guests w ere Mr. and Mrs.
Carl h . F redrick sen of Sioux City, Mr.
and Mrs. W illis I). W yard of D uluth,
Mr. and Mrs. H. N. T hom son of Presho,
S. D., F ran k C. O’B rien, a ssistan t vice
p resid en t
N o rth w estern
N ational
B ank & T ru st Co., M inneapolis, Edgar
L. M attson, p resid en t M idland N ation­
al B ank & T ru st Co., M inneapolis, and
Clifford De P uy, pu b lish er of the
N orthw estern

B anker.

John T. H am ilton II, a ssistan t cash­
ier of th e M erchants N ational B ank of
Cedar Rapids, Iowa, w ill be m arried
on October 10 to M iss C onsuelo V. L.
V illa, d au g h ter of Count and C ountess
A lfonso P. V illa of New Y ork City and
N ew port. Miss V illa’s m o th er is a
m em ber of th e w ell know n L ippincott
fam ily of Philadelphia. T he w edding
w ill take place in th e ir New York resi­
dence a t 18 E a st Seventy-second Street,
and H ugo A. R utherford, a P rinceton
classm ate of Mr. H am ilton w ill serve
him as b est m an.
Mr. H am ilton m et Miss Villa tw o
y ears ago a t N ew port, R. I.

T he Irv in g T ru st Com pany of New
Y ork gave a v ery delightful cocktail
p a rty W ednesday from four to seven
in th e Club Room of th e H otel Traym ore for th e ir b an k er friends atte n d ­
ing the Convention.
Officers of th e b an k w ho acted as
hosts w ere L. E. P ierson , ho n o rary
chairm an, W . N. E n strom , first vice
president, W in. F eick , W . T. D oyle, J.
S. M oss and N olan H arrigan, vice pres­
idents.
B ankers a t A tlantic City received
th e follow ing invitation: “H is R oyal
H ig h n ess the D uke of W in dsor is g ra­
ciously extending an in v itatio n to a t­
ten d a reception a t S igrist H ouse in
N assau a t tw elve noon, Tuesday, Oc­
tober first, to those m em bers of th e
A m erican B ankers A ssociation and
th e ir w ives w ho m ake th e post-con­
ven tio n cruise in th e S. S. A cadia of
E a ste rn Steam ship L ines.”

71

• IOWA
T he S. S. A cadia sailed from New
Y ork on a special seven-day cruise to
N assau.
Of course to have cocktails w ith th e
D uke you h ad to pay from $75 to $195
for y o u r C ruise accom m odations and
th e n p ra y you w o u ld n ’t be too sick to
enjoy th em w h en you arrived.
A t th e S eaview Country Club n e a r
A tlan tic City th e re is a can of F lit a t
each tee to “fight off” th e N ew Jersey
m osquitoes w hich are big and bad
u nless a breeze from th e ocean p re ­
v en ts th em from buzzing and biting.

NEWS

•

w ith our in stitu tio n w ith w hich I
have been so closely identified. This,
and th e fact th a t p etty politics have
come to th e surface, co nstitute m y
only regrets.
“T he m em bership of th e A m erican
B ankers A ssociation aspires to hig h er
th in g s and I am confident th e day w ill
come w hen th e honors th e A ssociation
has to bestow w ill be aw arded in th e
tru e A m erican spirit.
“As confirm ation, in p art, of m y
statem en t above I quote from a source
outside of th e A.B.A. A tlantic City
C onvention H ead q u arters—th e W ash-

ington B an k tren d s and B ackgrounds
letter, all of p arag rap h six as follows:
TR E A SU R Y IN T E R E ST E D IN A.
B.A. ELECTIO N. There are hints,
rum ors and stories th at “high treasury
officials” are m uch concerned over the
p o ssib ility th a t ex ecu tiv e v ice p resi­
dent R u ssell Sm ith of the B ank of
A m erica m ight he elected v ice p resi­
dent of the A.B.A., th u s brin gin g to
the forefront of organized b anking a
“G iannini m an”. The story circulat­
in g here is that Tom Sm ith, w ho w as
once an a ssista n t secretary of the
Treasury, has been very b u sy on offi-

M iss V ivi-A nne H u lten w ho w as 10
tim es Sw edish ice sk atin g cham pion
led th e Gala Ice R evue given for th e
b a n k e rs on T uesday night. A.B.A.
delegates should be e x p ert judges of
ice sk a tin g b y now as th e H ouston
C onvention in 1938 h ad Sonja H en ie
an d h e r p erfo rm ers also cu t up th e ice
in fine fashion.
R u ssell G. Sm ith, executive vice
p re sid e n t of th e B ank of A m erica N a­
tio n al T ru s t & Savings A ssociation of
San F rancisco w ith d ra w from th e race
for second vice p re sid e n t of th e A.B.A.
an d th is m ade A. P. G iannini peeved
and p e rtu rb e d and so he issued th e
follow ing sta te m e n t d u rin g th e A.B.A.
C onvention: “I am inform ed th a t R u s­
sell G. Sm ith, executive vice p resid en t
of th e B ank of A m erica N ational T ru st
& Savings A ssociation, has req u ested
th a t th e no m in atin g com m ittee of th e
A m erican B an k ers A ssociation do not
consider his nam e in nom in atin g a
candidate for second vice p resid en t of
th e A ssociation. H is w ith d raw al is
n o t a t m y suggestion. He has ren d ered
o u tstan d in g service to th e A ssociation
and I believe him to be m ost w o rth y
of th e h o n o r for w hich he has been
proposed by his num ero u s friends.
“I sh are in th e gratification he m u st
feel in th e m an y com plim entary ex­
p ressions w hich have come to him
th ro u g h o u t recen t m onths. H e tru ly
deserves th e honor.
“I do not know w h a t p rom pted his
w ith d raw al of his nam e, b u t I do know
th a t certain sycophantic satellites of
th e m ost a rb ita ry an d b u reau cratic de­
p a rtm e n ts of th e federal g o v ern m en t
have been p erniciously active lest th e
b an k of w hich Mr. S m ith is a high
officer an d w hich is linked w ith m y
nam e be given a p p ro p riate recogni­
tion.
“I feel th a t th is high an d deserved
h o n o r likely w ould have gone to Mr.
S m ith if he h ad n o t been connected

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BAS I C

C H I C A G O ’S

INDUSTRIES

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The ability of any bank to meet them is one of the
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A M ER IC A N N A T IO N A L BANK
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COMMERCIAL

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CHECKING

•

SAVINGS

•

TRUSTS

N o r th w e s te r n B a n k e r O ctober 1940

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Federal Reserve Bank of St. Louis

72

• IOWA

NEWS

•-

p er C ounty Savings Bank, Newton;
De P uy, Clifford, P ublisher, N o r t h ­
w estern
B a n k e r , Des Moines; Fredricksen, Carl R., P resident, The L ive­
stock N ational Bank, and wife, Sioux
City; Gronstal, B. A., P resident, Coun­
cil Bluffs Savings Bank, and wife,
Council Bluffs; G roszkruger, Paul,
P resident, Citizens N ational Bank,
Belle Plaine; H am ilton, John T., IT,
A ssistan t Cashier, M erchants N ational
B ank, Cedar Rapids; Johnson, E. R.,
D irector, N ational B ank of W aterloo,
W aterloo; Jones, E rw in W., Vice P resi­
dent, Iowa-Des Moines N ational Bank
& T ru st Co., Des Moines; K nutson, C.
A., P resident, Clear L ake B ank &
T ru st Company, Clear Lake; Rane,

cial su ggestion s received to p revent
such an even tu ality . There are va ri­
ous v ersion s of the story, all of w hich
coincide on T reasury d islik e of any
A.B.A. honors to officials of the B. of
A. T here is no personal criticism of
B u ssell Sm ith h im self’.”

The follow ing B ankers from the
B anker
te rrito ry a t­
tended th e A.B.A. convention a t A t­
lantic City:

N orthw estern

Iowa
B ailey, R ay <)., Vice P resident, J a s ­

W illiam A., P resident, Security Sav­
ings Bank, M arshalltow n; Ree, Mrs.
R ichard C., C apital City S tate Bank,
Des Moines; M cPherrin, Grant, C hair­

m an of th e Board, F irs t F ederal State
Bank, and wife, Des Moines; M iller, J.
J., Cashier, W aterloo Savings Bank,
and wife, W aterloo; R ollin s, R ichard
R., Vice P resident, B ankers T ru st
Company, Des Moines; Sam , A. G., Vice
P resident, F irs t N ational Bank, Sioux
City; Scott, AVinfield W., Vice P resi­
dent, V alley Savings Bank, and wife,
Des Moines; Sm ith, F red W., Vice
P resident, The M erchants N ational
Bank, and wife, Cedar Rapids; Von
Schrader, F rank, P resident, Union
B ank and T ru st Co., O ttum w a; W ag­
ner, R olfe ()., P resident, Capital City
State Bank, and wife, Des Moines;
W arner, F rank, Secretary, Iow a B ank­
ers A ssociation, Des Moines; W elch,
F rank C., P resident, The Peoples Sav­
ings Bank, and wife, Cedar Rapids;
Young, H oyt R., Cashier, A m erican
N ational Bank, A rlington.

Minnesota
A llen, J. A., P resident, The F irs t N a­
tional Bank, Milaca; A m undson, F. A.,

Com m issioner

of

B anks,

St.

Paul;

Brockm an, W . E., Vice P resident, Mid­

A n illu s tra tio n of th e satisfactory
nature of C entral H anover coopera­
tion, as extended to customers th ro u g h
good times and had:
159 A m erican banks have been cor­
re sp o n d en ts of th is in s titu tio n for
m ore than 50 years.

C e n t r a l

H a n o v e r

BA N K A N D T R U S T C O M P A N Y
NEW YORK

MEMBER

FEDERAL

DEPOSIT

N orthw estern B anker October 1940

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

INSURANCE

CORPORATION

land N ational B ank & T ru st Company
of M inneapolis; Brom bach, C. B., Vice
P resident, F irs t N ational B ank &
T ru st Co., M inneapolis; B urgess, John,
Vice P resident, N o rth w estern N ational
B ank & T ru st Co., and wife, M inneap­
olis; Carlander, John, P resident, State
B ank of F arib au lt, F arib au lt; Crosby,
A lbert H., Treasurer, F arm ers & Me­
chanics Savings Bank, M inneapolis:
D abelstein, C. F., P resident, Olmsted
County B ank & T ru st Co., and wife,
R ochester; D elander, N. P., Vice P resi­
dent, F irs t N ational B ank of St. Paul,
St. Paul; D uB ois, B en, P resident, F irst
State Bank, Sauk Centre; D uncan, William , Jr., Secretary, M innesota B ank­
ers A ssociation, and wife, M inneapolis;
F ouq uette, D aniel J., P resident, St.
Cloud State Bank, and wife, St. Cloud;
Headley, R ouis S., Vice P resident,
F irst T ru st Co., St. Paul; Johnson, G.
J., A7ice P resid en t, The A m erican N a­
tional B ank of St. Paul, St. Paul; Jones,
O. G., P resident, Goodhue County N a­
tional Bank, Red W ing; M attson, E d ­
gar R., P resident, M idland N ational
B ank & T ru st Co., M inneapolis;
O’B rien, F ran k C., A ssistan t Vice P re s­
ident, N o rth w estern N ational B ank &
T ru st Co., M inneapolis; P eterson , John
T., P resident, State B ank of Le Sueur,
Le Sueur; P eyton, B. M urray, Treas­
u rer, A m erican B ankers Association;
P resident, M innesota N ational Bank,
and wife, D uluth; P eyton , J. N., P resi­
dent, F ederal R eserve Bank, M inneap­
olis; P ow ers, F ran k P., President, K an­
abec State Bank, Mora; R otering, V ic­
tor F., Vice P resident, F irs t N ational
B ank & T ru st Co., M inneapolis; Sands,
A. W ., P resident, W estern S tate Bank,
St. Paul; Satire, Orlano K., Vice P resi­
den t and Cashier, Blue E a rth State
Bank, and wife, Blue E arth ; T hom son,
Cameron J., P resident, N orthw est
B ank C orporation, M inneapolis; W il­
son, A. E., Vice P resident, F irs t N a­
tional B ank & T ru st Co., M inneapolis;
AVyard, W illis D., E xecutive Vice P re s­
ident, F irs t and A m erican N ational
Bank, and wife, D uluth.

73

-•
Nebraska
Cleary, F. J., Vice P resid en t, F irs t

N ational B ank, and w ife and son,
G rand Island; F arw ell, L. C., Cashier,
State Bank of D ubois, and wife, Du­
bois; M itten, Wm. N., P resid en t, S teph­
ens N ational Bank, F rem ont; N eu ­
m ann, Clyde C., E xecutive Vice P re si­
dent, F a rm e rs & M erchants N ational
B ank, Oakland; Placek, E. E., P re si­
dent, F irs t N ational B ank, and wife,
W ahoo; R idge, Ray R., Vice P resident,
T he O m aha N ational B ank, and wife,
Omaha; W augh, Sam uel C., E xecutive
Vice P re sid e n t and T ru s t Officer, The
F irs t T ru s t Com pany of Lincoln, L in ­
coln.

IOWA

NEWS

•

Most of us have m ore free cash th a n
we know w h at to do w ith, and afte r all
$200,000, as an exam ple, invested a t 1
p er cent is ju st as good as $100,000 in ­
vested at 2 p er cent as far as incom e is
concerned. I should not suggest th is
m ethod if it added m aterially to your
risk, and th a t’s w hy it is qualified by
advising sh o rt m atu rities and high
q uality only.
It is not su rp risin g th a t w e should
h ear m any ban k ers in sm aller tow ns
w hich are situated some distance from
financial centers, tell us th a t th ey do

not have the proper ability to judge
m unicipal credits, or keep properly in ­
formed. The m unicipal business itself
is peculiar in th a t th e com bined opin­
ion of m unicipal buyers, in th e aggre­
gate, in reality establishes m uch of th e
credit standing of individual issue. A
g reat deal of inform ation is carried by
w ord of m outh, and exchanges of opin­
ions, ra th e r th a n reading it in p rin ted
form or seeing it on a ticker. It u su ­
ally m eans, therefore, th a t th e average
buyer has to p u t confidence in o th er
people, not necessarily only one or

South Dakota

D ahl, A. E., E xecutive Vice P re si­

dent, T he R apid City N ational Bank,
R apid City; P hillip pi, F. F., P resident,
D akota S tate B ank, and wife, M ilbank;
R em pfer, W m . C., Cashier, F irs t N a­
tio n al B ank, and wife, P ark sto n ; Star­
ring, Geo. M., S ecretary and T reasu rer,
South D akota B an k ers Association,
and wife, H uron; Thom son, H. N., Vice
P resid en t, F a rm e rs & M erchants
B ank, and wife, Presho.

North Dakota
A as, M artin, P resid en t, N o rth D ako­

ta A ssociation, F irs t S tate B ank, and
wife, N ew Rockford; B assett, Clarke,
Vice P resid en t, M erchants N ational
B ank & T ru st Co., and wife, Fargo;
Irish , F red A., P resident, The F irs t
N ational B ank & T ru st Co., Fargo;
V ogel, F. A., M anager, T he B ank of
N orth D akota, B ism arck; W attam , C.
€ ., S ecretary, N o rth D akota B ankers
A ssociation, Fargo.

Montana

Y

Gordon, M iss M argaret, U nion B ank
& T ru st Co., H elena; Hibbard, A. T.,

are our problems. Your language

is

our language. The market you serve is the market we

P resid en t, U nion B ank & T ru st Co.,
and wife, Helena; M ountain, R. D.,
P resid en t, F irs t S tate B ank, Shelby.

know through 72 years of close association.
This community of interest is one important reason why

B U Y IN G M U N IC IP A L
BONDS
(C ontinued from page 20)
sibly you own m any m unicipal bonds
m a tu rin g w ith in one y e a r from date
w h ich you could sell now a t ap p ro x i­
m ately all in te re st to m atu rity . Some
of these m igh t be sold and exchanged
into four or five-year bonds w h ere
th e re is a tax-exem pt re tu rn to a v e r­
age about 1 p er cent. Secondly, th e re
m ig h t be included in y o u r portfolio
som e m edium grade, as w ell as high
grade m unicipals. In m y n e x t b re a th
I w ould, of course, caution th a t th e
am o u n t of m edium grade bonds should
be k ep t to a m inim um , and th a t I do
not m ean to im ply th e inclusion of any
poor m unicipal bonds. A th ird , an d to
m y m ind b e tte r m ethod of increasing
income, is this;
Keep w ith in th e m a tu ritie s w hich
you have already established for y o u r­
selves; also m ain tain com pletely h igh
grade q u ality in th e investm ents; b u t
a t th e sam e tim e in v est m ore money.

OUK PROBLEM S

nearly 500 agricultural hanks have selected Live Stock
National as their Chicago correspondent.
If your interests center around agriculture too, you will
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We invite your thoughtful investigation of the m any
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L iv e Stock
National H

a n k

of Chicago

ESTABLISHED 1868
UNION

MEMBER

FEDERAL

D E P O S I T

S T O C K

YARDS

I N S U R A N C E

C O R P O R A T I O N

N orthw estern Banker October 19)0

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Federal Reserve Bank of St. Louis

74

• IO WA
tw o persons, b u t p referab ly several.
M unicipal dealers, ban k s w ith bond
departm en ts, an d corresp o n d en t com ­
m ercial b an k s are all w illing to divide
th e ir inform ation w ith th e o th er fel­
low. Some of th e in fo rm atio n and
opinions are n a tu ra lly b e tte r th a n

NEWS

o thers, b u t since you have to tru s t
som e one for know ledge w hich you
y o u rself m ay n ot have, it is only neces­
sa ry th a t you select th e person or p er­
sons w hom you feel w ill give you h o n ­
est as w ell as able inform ation an d ad­
vice. W e also h e a r sim ilar justified

Out-of-Town Banks
Out-of-town banks and bankers will find here
complete banking facilities for prom pt and
economical handling of accounts in Chicago. We
would appreciate the opportunity of serving you.

C it y N a t io n a l B a n k
AND

TRUST

2 0 8

S O U T H

COMPANY

of Chicago

L A S A L L E

S T R E E T

{Member Federal Deposit Insurance Corporation)

A HUNDRED
CUSTOMERS
V

VA"
—see what they say.
N ote that the suggested question conforms to good
selling technique. It is designed to start a discussion,
not to close it. If they say "No”, it invites you to tell
them o f the advantages. If they say "Yes”, you need
only tell them how little it costs under the De Luxe
Group Order Plan.
Savings up to 45% when orders for five customers are
grouped. Two hundred checks complete—numbered
and imprinted—cost as little as $1.00.
F older N o. 13 explain s i t fu lly . W rite f o r it.

D
CHECK

g

Lu xe
P R IN T E R S ,

INC.

Lithographers a n d Printers
P la n ts a t

K A N SA S CITY

N o r th w e s te r n B a n k e r O ctober 1940

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Federal Reserve Bank of St. Louis

•

CHICAGO
NEW YORK

CLEVELAND
ST. PAUL

com plaints from sm aller in stitu tio n s
about being unable to obtain pro p er
offerings of m unicipal bonds due to th e
activ ity of larg er city banks in comb­
ing th e m ark ets for desirable m unici­
pals before th e average b an k er m ay
have a chance to see them . T his like­
w ise can be offset to a g reat degree by
going to y o u r correspondent bank, or
a few of y o u r good b an k or bond deal­
er friends w hom you m ay select, and
p u ttin g y o u r problem in th e ir laps.
A fter all, th ey get paid for it in a
m eagre w ay and ought to be, and are,
w illing to assist you. L arge city ban k s
w ill u sually divide a p a rt of th e ir m u ­
nicipal purchases w ith th e ir ow n cor­
resp o n d en t banks. You m ig h t go about
it a different w ay by placing y o u r in­
q u iry for certain bonds th ro u g h m any
different hands, hoping th a t some or­
ganization m ig h t be able to obtain
w h at you w a n t and brin g it to y o u r
attention. T his is a pro p er m ethod,
too, so long as it is n ot carried too fa r
by giving th e in q u iry to so m any peo­
ple th a t th e w hole tran sactio n be­
comes a nuisance to you th ro u g h th e
details of an sw erin g telephone calls
and letters. P robably a h appy m edium
is th e b est suggestion I could make.
M any of you m ig h t w ell give consid­
eratio n to buying m ore m unicipal
bonds on y o u r ow n hom e tow ns an d
hom e counties. A fter all, a local credit
in y o u r ow n com m unity should be one
w hich th e b an k er in th a t com m unity
know s as well, if n ot better, th a n a n y ­
one else. In such cases th e local b an k ­
er has a g reat deal of know ledge re ­
g arding tax collections, ab ility and
w illingness to pay, etc., w hich should
m ake him a v ery good judge of th e
credit. If th e issue is too big for you
to own yourself, get yo u r correspond­
e n t b ank or some m unicipal bond
dealer to join you in p u ttin g in th e bid.
A fter all, if th e bonds of y o u r tow n are
good enough for some o th er b an k in
an adjoining state to own, m aybe th e y
m ig h t as w ell be k ep t a t home.
T he non-callable featu re of th e av er­
age m unicipal bond has developed to
be one of th e o u tstan d in g advantages
of such securities. In tim es like these,
w hen it looks like all of our good cor­
po rate bonds, and m ost of our high
coupon bonds, a re being tak en aw ay
from us, it is quite com forting to kn o w
th a t th e in v estm en t you m ade th re e or
four y ears ago in a ten-year m unicipal
w ill continue to yield you th e sam e
cost price re tu rn for th e n ex t several
y ears w ith o u t in terru p tio n . In th is
sam e connection it m ig h t be suggested
th a t since m unicipal bonds in general
are non-callable, th e re is n ot any good
reason for avoiding th e purchase of

75

-•
h ig h coupon bonds even th o u g h th e
p rem iu m m ay be large. A gain tak in g
recognition of th e im m ense am o u n t of
u n in v ested cash in m ost banks, it does
n o t seem to be p a rtic u la rly im p o rta n t
a t th is stage of th e gam e w h e th e r a
bond costs 110 or 101 since th e n e t taxexem pt incom e to m a tu rity is th e p ri­
m ary consideration. As a ru le a slig h t­
ly b e tte r yield can be obtained from
h igh coupon bonds due to th e u n w ill­
ingness on th e p a rt of som e investors,
p a rtic u la rly in dividual investors, to
pay su b sta n tia l prem iu m s for m unici­
pals.
T he to tal over-all m unicipal and
sta te debt of th e n atio n h as rem ained
ap p ro x im ately static d u rin g th e last
five years. Since m ost m u nicipal is­
sues have serial m atu rities, th e re is a
v e ry large a n n u a l tu rn o v e r by p a y ­
m e n t a t m a tu rity , or refunding, w hich
m ain tain s a m ore or less co n stan t su p ­
ply of bonds in th e m ark et. T here
seem s little reaso n to expect th a t over­
all m unicipal debt need show, in th e
fu tu re, an y su b sta n tia l in crease above
th e am o u n t now o u tstanding. In fact,
m an y m unicipalities a re em b ark in g on
definite p rg ram s for th e steady re tire ­
m en t of th e ir deb t w ith o u t refunding.
I t is safe to assum e, how ever, th a t re ­
g ardless of th e price level, m unicipal
bonds can alw ays be b o u g h t an d can
alw ays be sold. Such is tru e, even in
tim es of financial stress. Serial m a­
tu ritie s are refu n d ed in m an y in ­
stances, w h ich allow s co n stan t rep lace­
m e n t of m a tu rin g bonds w ith e ith e r
th e sam e secu rities or sim ilar ones
w hich are being sold alm ost daily in
th e m ark et.
In th e case of m unicipals, th e b o r­
row ing corporation is a co n stan t and
p e rm a n e n t en tity . P olitical control
m ay change and fluctuations m ay oc­
c u r in th e ty p e of population an d th e
w illingness o r ability to pay, b u t th e
corp o rate m unicipal nam e is p erm a­
n e n t and w ill be th e re y e a r in and
y e a r out. F o r th is reaso n th e neces­
sity of actively w atch in g an d follow ing
m unicipal credits is n o t quite as im ­
p o rta n t as it is w ith co rporate bonds.
T his m aterially reduces th e ris k and
w o rry factor in an y h igh g rade m u n ici­
pal program .
T h ere are m an y fiscal an d political
factors w hich m ig h t be used as a g en­
eral guide in d eterm in in g th e quality
of m unicipal bonds. T hey should be
applied as p a tte rn s an d guides b u t not
n ecessarily in th e sense of set fo rm u ­
lae in d eterm in in g m unicipal credit.
Some of th ese factors are as follows:
(1) A m ount and c h a ra c ter of popu­
lation.

IOWA

NEWS

•

(2) Type of in d u strial life and how
well diversified.
(3) C haracter of local g overnm ent in
th e m unicipality.
(4) T otal debt in relatio n to p er cap­
ita w ealth and ta x paying ability.
(5) T he m oral ch aracter of th e in ­

( 1V

e

I I Lin o

h ab itan ts in respect to th e ir w illing­
ness to pay, as w ell as th e ir ability to
pay.
(6) State law s reg ard in g th e am ount
of debt creatable, m ethods of levying
taxes, etc.
To apply any or all of these in any

< ^> EZ< JÍC EÍ

Since 1 9 2 2 Wessling Advertising Programs have been getting definite, tangible results for bankers

D. R. Wessling, president

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N o r th w e s te r n B a n k e r O ctober 19h0

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Federal Reserve Bank of St. Louis

76
.
fixed ratio for d eterm in in g secu rity is
not practical b u t all of th em com bined
are co n stan tly im p o rta n t a t a rriv in g
a t a conclusion in resp ect to th e qu al­
ity of a credit.
It is difficult alw ays, an d especially
so a t a tim e like this, to advise w ith
pro p riety and intelligence, on any
phase of investm ent. P rob ab ly th e re

I O W A

N E W S

.

are some people reading th is w ho can
get along sufficiently w ell w ith o u t ad­
ditional income; then, in spite of th e
glow ing pictu re I m ay have painted
for m unicipal bonds, th ey should leave
th em alone entirely. H ow ever, th is
w ould apply equally to all o ther form s
of investm ent; b u t u n fo rtu n a te ly th ere
are v e ry few, if any of us, placed in

Federal Home Loan Bank of Des Moines
DES MOINES, IOW A

STATEMENT OF CONDITION AUGUST 31, 1940
RESOURCES
Advances to M em bers................................................................................................ . .$15,729,778.63
U . S. Government Obligations and Securities Guaranteed by U . S. . . . . . 1,367,000.00
76,559.95
Accrued Interest R eceivable....................................................................................
15,115.90
Deferred C h a r g e s ........................................................................................................
1,936,713.08
$19,125,167.56
LIABILITIES
Members’ Stock Subscription................................................................................ . .$ 2,552,600.00
Government Stock Su bscription............................................................................ . . 7,394,900.00
7,500,000.00
*Debentures O u tsta n d in g ...........................................................................................
937.50
Premiums on D ebentures...........................................................................................
923,103.82
Deposits .........................................................................................................................
53,266.30
Accrued Interest P ayab le.......................... ..............................................................
S u rp lus:
R eserves .........................................................................................$471,571.38
700,359.94
Undivided Profits . ...................................................................... 228,788.56

such an adm irable position. Most of
us live in a practical b anking w orld
w here we have to provide each day a
constantly renew ed incom e in order to
operate our in stitutions.
Most of th e sam e general facts and
a ttrib u te s of m unicipal bonds w hich I
have described could have been said
about five y ears ago w hen the m ark et
w as su b stan tially low er th a n a t p res­
ent. L ikew ise th e sam e can probably
be said about th em five y ears from
now w hen the m a rk e t m ay th e n be an
en tirely different affair, b u t the m ost
difficult task is to apply th e factual
background of th is type of in vestm ent
w hich is m ore or less co n stant to th e
p articu larly difficult period of in vest­
m en t in w hich w e all now find our­
selves. All of us are su rro u n d ed by
day-to-day problem s on w hich definite
answ ers are alm ost im possible, and
th ere is probably n o thing m ore defi­
nite th a t I could suggest th a n th e ap­
plication of good ban k in g horse-sense
to th e problem of investm ent. The
know ledge th a t w e cannot alw ays
guess th e rig h t side of th e m arket, b u t
th e firm belief th a t w ith th is applied
horse-sense, each of us w ill be able to
an sw er reasonably w ell our problem s
of incom e in th is dizzy and changing
financial world.

$19,125,167.56
^Participation in $48,500,000 consolidated Federal Home Loan Bank debentures outstand­
ing1, which are the joint and several obligations of the tw elve Federal Home Loan Banks.

3i%

S in c e i 8 y 8

LIBERAL EARNINGS
with
SAFETY

INSURED
SA FETYdoubly-secured
by fine Des Moines
residential property.

P
Statement on request

co un ty

FEDERAL

W a t e r lo o
Building

and

SAVIN GS &
Loan

LO AN ASSN .

Association

A ssets $ 1 ,5 7 5 ,0 0 0

East Fifth at Lafayette

WATERLOO

IOWA

N o r th w e s te r n B a n k e r O ctober 1940

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Federal Reserve Bank of St. Louis

o lk

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

511 Seventh St.
ftCC MMOINFS
V /IN C a

Directory Ready
The final 1940 edition of “A m erica’s
L eading F in ancial R eference Book”
R and McNally B ankers D irectory, has
ju st come from th e press and is ready
for delivery. I t w ill show Ju n e 29th
(and later) statem en ts of every bank
in th e U nited States; all available for­
eign b an k inform ation, w ith com plete
banking data on th e 21 countries th a t
signed th e “A ct of H avana.”
The 1940 elected officers and direc­
to rs w ill appear in th is edition. T ran ­
sit n um bers of all U nited States banks
are arran g ed in a special section of
the final 1940 edition. These num bers
are assigned by R and M cNally B ank­
ers D irectory, as th e official num bering
agent of th e A m erican B ankers Asso­
ciation.
An in terestin g featu re of th e final
1940 edition is th e list of 281 com m er­
cial banks w ith total resources of over
$25,000,000, ran k ed according to re ­
sources.
Included in this 2,500 page edition of
th e Blue Book is th e latest inform a­
tion on all g o vernm ent b anking agen­
cies, b ank associations, etc.; a selected
list of inv estm en t dealers; accessible
banking points to every non-bank
tow n; com m ercial and ban k in g laws;
postal regulations, etc.

United States Savings and
Loan League to H old
H E forty-eighth a n n u a l conven­
tion of th e U nited States Savings
and L oan L eague will be held at
th e P alm er H ouse in Chicago, N ovem ­
b er 11-15, featu rin g th re e days (No­
vem ber 13-15) of form al convention
program , tw o days (N ovem ber 11-12)
of m eetings of its thirty-one com m it­
tees an d its executive council, and a
one d ay ’s (Tuesday, N ovem ber 12)
m eetin g of th e Society of R esidential
A ppraisers. T his is th e larg est g a th ­
erin g of hom e m ortgage lenders to
tak e place an y w h ere in th e U nited
States in 1940, and betw een 1,500 and
2,000 are expected to attend.
P robab ilities are th a t at least 200
of th e delegates w ill be from th e
N o rth w estern area. Jo h n F. Scott, St.
Paul, M innesota, is directo r for th e
L eague from th e sev en th d istrict
w h ich includes th e D akotas, M inne­
sota, Iowa, N ebraska, W isconsin, M ich­
igan, In d ian a and Illinois. F o r th e far
N orth w est, J. T. S. Lyle of Tacoriia,
W ash in g to n , is th e League director. Of
th e 900-odd com m ittee m em bers w ho
w ill be busy d ra ftin g re p o rts to p re ­
sen t to the L eague’s executive council
th e first tw o days of conventon week,
a b o u t 88 are from th e N o rth w estern
states. M em bers of th e executive coun­
cil from th is area include O. R. Baum,
Pocatello, Idaho; E. M. K lapka, F o rt
Dodge, Iowa; K en n eth S. K erfoot, St.
Paul, M innesota; V. D. Clark, Billings,
M ontana; Dave Rowe, F rem o n t, Ne­
b rask a; E. A. Shirley, M inot, N orth
D akota; Ben H. H azen, P ortland, Ore­
gon; G. H. M cW illiams, R apid City,
South D akota; and Dewey H. Jones,
Casper, W yom ing.
B usiness of the convention w ill be
centered on the problem s of th e h o u r
fo r th e executives of these th rift and
hom e financing in stitu tio n s re p re se n t­
ing $6,000,000,000 in assets. Purposely
h eld open to the last m in u te are m any
spots on both the speaking and discus­
sion program s, in ord er th a t any over­
n ig h t developm ents in w orld or n a ­
tio n a l affairs w hich c a rry grave con­
cern for th e savings, building and loan
ex ecutives m ay be th o ro u g h ly ironed
o u t at th e convention. It is e v ery ­
w h e re recognized as probably the m ost
m om entous g ath erin g in th e h isto ry
of th e League, in view of th e tense
w orld situ atio n in w hich the m en and
w om en are m eeting.

T

4 8 th Annual Convention
P resid en t George W. W est (A tlanta)
of th e U nited States League, lists a
few subjects w hich are bound to be
discussed, although no form al pro­
gram or portion of one has been re ­
leased. Am ong his sure-fire subjects
are in te re st rates and expansion of
p riv ate en terp rise to tak e on th e re ­
sponsibility for all except the tem ­
porary stru c tu re s in th e defense hous­
ing program . A pplication of th e civil
relief sta tu te s to persons conscripted
for th e n atio n ’s defense w ill be of p ri­
m ary im portance to these m anagers
of lending in stitu tio n s and w ill u n ­
doubtedly come into th e program .
Sensing th e grow ing im portance of
th e ir system of in stitu tio n s in th e n a­
tio n ’s hom e m ortgage p icture—it has
advanced considerably in its pro p o r­
tion of all hom e m ortgage volum e in
th e p ast tw elve m onths—th e savings,
building and loan m en are concerned
about increasing th e efficiency of th e ir
construction lending process, about
th e ir advertising and custom er con­
tacts, about th e personnel and q u ar­
ters of th e ir in stitu tio n s, about keep­
ing adequate reserves, and all th e prob­
lem s of expanding in stitu tio n s. Since
the convention w ill be atten d ed by
m any besides th e savings and loan
m anagers—th e atto rn ey s, the ad v er­
tising m en, several dozen directors
of th e associations, ju n io r executives,
accountants, Federal Home Loan B ank
officials—th ere are to be special ses­
sions for m anagers, for attorneys, and
for all in terested in advertising. Those
delegates w hose special concern is
w ith appraising will find th e ir group

session in th e m eeting of the society
of residential ap p raisers T uesday of
convention week, since all sessions of
th e society’s convention are open to
those reg istered at th e savings and
loan gothering.
The com m ittee on tren d s of the
U nited States Savings and Loan
League, a group w hich has been func­
tioning for four y ears to determ ine
ju st w h at kind of a business th e 9,000
savings and loan in stitu tio n s are be­
com ing in all p articu lars, w ill give
an o th er in stallm en t of its re p o rt at
this convention. It has already done
significant research on the m ortgage
lending side of th e business, th e
sources of m oney w hich the in stitu ­
tions use, th eir com petition, and th e ir
liquidity policies, as well as th e size
and type of institutions. T his research
w ill be succeeded th is y ear by recently
u n earth ed facts of equal significance
to th e business.
O ther com m ittees of th e League
w hich are going to rep o rt to th e exec­
utive council, and of w hich m any are
going to rep o rt to th e general conven­
tion, include those on construction
loan policies and procedures, economic
policies, F ed eral H ousing A dm inistra­
tion, federal legislation, fidelity bonds
and insurance, hom e taxation, in v est­
m ents and in v estm en t policies, m erger
policy and procedure, personnel, pub­
lic education, public housing, public
relations, real estate m anagem ent, re­
serve credits and banking relations,
social security, and title charges and
cost in placing and collecting m o rt­
gages.

Iowa Convention Program
T H E an n u al convention of th e Iowa
B uilding and Loan League w ill be
held in W aterloo on October 28 and
29, w ith h ead q u arters a t th e Hotel
M ontrose. W hile as y et th e program
has not been arran g ed in all its details,
speakers are announced as follows:
R obert J. R ichardson, Pres. F ederal

H om e L oan B ank of Des Moines.
G. H. F allin, P resident, Society of R esi­
dential A ppraisers, Peoria, 111.
M erle Sm ith, a ssistan t to the p resi­
dent of the M issouri State League
of B uilding and Loan Associations,
K ansas City, Mo.
Jam es Twohy, G overner F ederal
N o r th w e s te r n B a n k e r O ctober 1940


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Federal Reserve Bank of St. Louis

78

-• S A V I N G S A N D L O A N •
H om e L oan B ank System , W ash ­
ington, D. C.
A. W. Gordon, P resid en t, O m aha Loan
& Bldg. A ss’n.
M orton Bodfish, Exec. V. P res. U. S.
Sav. & Loan League.
In addition to these a n u m b er of
Iow a m en w ill lead discussions on
such topics as “Is It A dvisable To Pay
on D em and,” “In te re s t R ates,” “D ivi­
dend R ates and R eserves,” “D isburse­
m en ts on C onstruction L oans,” “How
M uch Should W e B orrow To L end,”
“Legal P itfalls,” “A ppraisals,” “L end­
ing P lans an d P ractices.” T hese lead­
ers w ill be H. R. H anger, Dubuque;
L. D. Ross, Des Moines; Jo h n Schenk,
D avenport; C. H. W arnock, Iow a Falls;
E. S. Tesdell, Des Moines; R. G.
Holm es, W aterloo.
The Cedar Rapids com m ittee in
charge of convention arra n g e m en ts is
F re d H. K ubicek, chairm an, H. H.

ASSETS

OVER

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

AND

L OAN

A SS O C I AT I O N

OF D E S M O IN E S
216 8th Street

Phone 4-5324

N o r th w e s te r n B a n k e r O ctober 19^0

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

B ennett, B u rton R. H ynden, M ax T.
Brom w ell, L. J. M aresh and T hom as
Suchomel.
T he Ladies com m ittee w ill be as fol­
lows: Mrs. D avid T u rn e r and Mrs.
F re d H. K ubicek, co-chairwom en, Mrs.
S. W. W ilder, Mrs. W. L. Crissm an,
Mrs. M ax Brom w ell, Mrs. L. J. M aresh
and Mrs. Thos. Suchomel.
T he b an q u et w ill be held on th e eve­
n ing of October 28th followed by en­
tertain m en t. T here w ill be no speaker
a t th e banquet.
The convention w ill open inform ally
on Sunday afternoon, October 27th.
T he convention pro p er w ill convene
on M onday m orning, October 28th
and w ill ad jo u rn on Tuesday, October
29th.

tion now is collecting m ore th a n $2,800,000 m o n th ly on taxes alone, in ad­
dition to th e collections on loans.”

LIVE S T O C K F IN A N C IN G
H a rry H. M ohler, vice presid en t of
th e F irs t St. Joseph Stock Yards Bank,
tells in The M id-C ontinent B a n ker a
nu m b er of points his in stitu tio n con­
siders in m aking live stock loans. He
w rites in part:
“B anking has learned th a t in m ost
cases th e failure of concerns handling
live stock loans w as caused by four
m ain factors—easy money, a period of
risin g prices, com petition for volum e
th a t b rought about low er m argin re ­
quirem ents, and lax inspections. Bank-

Pay Off Loans
More borrow ers paid off th e ir loans
in full du rin g A ugust th a n in any
o th er m onth in th e h isto ry of the
H om e O w ners’ L oan C orporation, offi­
cials announced recently.
Significant not only of p resen t con­
ditions b u t of th e steady progress
m ade over a seven-year period, the
records show ed
2,366 borrow ers
crossed th e ir loans off th e books d u r­
ing th e m o n th w ith paym ents of
$5,745,000. The total n u m ber of paidin-full HOLC loans now is 81,605,
am o u n ting to $194,339,000.
“T hese borrow ers, as w ell as all o th­
er HOLC borrow ers, w ere w ith o u t
p riv ate credit w hen th e HOLC w as
established by C ongress,” said C harles
A. Jones, g eneral m anager of th e cor­
poration. “The average w as tw o y ears
d elin q uent in both p rincipal and in ­
terest, and m ore th a n tw o y ears in
a rre a rs on taxes. Today, hu n d red s of
th o u sands of HOLC b o rrow ers are on
a p a r w ith th e b est of risk s for any
p riv ate institu tio n . All th ey needed
w as a chance to overcom e th e h a rd ­
ships resu ltin g from th e depression.”
Collections in Ju ly from all HOLC
b o rro w ers w ere 98 per cent of the
c u rre n t in stallm en t billings and in
A ugust reached 98.5 p er cent, Mr.
Jones reported. T he figures include
some 307,000 extended accounts, 211,000 of w hich w ere recast following
passage of th e M ead-Barry A ct by
C ongress last year, p erm ittin g ex ten ­
sion of th e am ortization period from
15 up to 25 years.
“T hese extension agreem ents re ­
quire pay m en t of taxes and insurance
along w ith m ortgage paym ents,” said
Mr. Jones. “On these accounts, b o r­
ro w ers are avoiding the accum ulation
of back taxes w hich caused countless
foreclosures in th e past. The corpora­

_
F ed

HOME
jj
e r a l S a v in g s

AND LOAN ASSOCIATION
OF DES MOINES
— our Federally Insured up to
$5,000 savings accounts are
the solution to your invest­
ment and trust problems.
Current dividend 3^4 percent.
Statement on request.
904 Grand Avenue
Des Moines, Iowa

79
ing h as learn ed th a t th e “T hree C’s”
of cred it are as m uch involved in a live
stock loan as in any com m ercial loan.
A ny sound pro g ram for financing th e

or

IM M EDIATE
SALES

essiiKj Advertising Co.
Des M oines

If you r
p h o tograp h er
can flatter
yo u w ith a
p ictu re, ju st
im agin e w hat
a sm art
su it o f clo th er
w ill do fo r yo u !

Since 1861

FR A N K E L ' S
DES MOINES

HOCHBROTHERS
PB i n T E R S - BO OHBi n OE RS - O F F I CE O U T F I T T E R S
S T R T I On E R S - B USInESS mRCHI RE S

G R A n D RVE f l UE

AT

F OURTH

N o r th w e s te r n B a n k e r O ctober 1940

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

live stock in d u stry m u st include a
thorough investigation of th e bor­
row er. H e m ust be carefully selected
as to his character, for we m u st re ­
m em ber alw ays th a t th e security from
w hich our loan is to be paid, is in his
possession, not ours. T herefore a loan
can be eith er good or bad depending
on th e ch aracter and in teg rity of the
borrow er.
“He m u st be carefully selected for
his capacity—th a t is, his ability, for
on th e pro p er handling of live stock
re sts th e u ltim ate resu lts of th e oper­
ation. Live stock im properly handled
th ro u g h lack of ability or carelessness,
m akes a poor loan, no m atter how good
the m ark et or how well bred th e stock.
“B anking learned th a t careful study
m ust be given to th e bo rro w er’s cap­
ital. One of th e g reatest lessons we
have learned is th a t the b o rro w er’s
capital has a definite relatio n to the
am ount th a t can safely be loaned a live
stock m an as w ell as a m anufacturer.
No h ard and fast ru le can be laid dow n
in this respect, how ever, for th e ratio
of capital to borrow ed funds w ill v ary
w ith th e type of operation, th e tim e in ­
volved in th e tu rn o v er, th e bo rro w er’s
ability, and conditions in th e in d u stry
itself. W e now know, how ever, th a t
th e capital buffer m ust at all tim es be
sufficient to p rotect th e lender if losses
occur.
“Sound adequate m argin re q u ire ­
m ents m ust be m aintained. A gain
th ere is no h a rd and fast ru le th a t can
be laid down, for m argin req u irem en ts
also v a ry w ith th e type of operation,
th e tim e involved in th e tu rn o v er, the
b o rro w er’s ability and conditions w ith ­
in th e in d u stry . B ut we know th a t a
m argin in th e deal m akes a b e tte r op­
erato r out of a b orrow er, for an am ount
of his ow n in th e live stock has m ade
m any a borrow er a m ore careful buy­
er, and a m ore thorough h an d ler of his
stock.
“W e have learned in this p a rtn e r­
ship of b an k er and live stock m an, th a t
we m u st supervise our borrow ers care­
fully, th ro u g h reg u lar inspections
m ade by experienced m en, and th is
program of inspections m ust never be
allow ed to become lax. W e have
learned to enlarge our supervision to
include an appraisal of th e b o rro w er’s
ability, his know ledge of costs, his
know ledge of economic conditions, and
of conditions w ith in th e live stock in ­
dustry.
“These factors of p ru d en t lending
apply u n d er all conditions, b u t m ust
be applied m ost carefully in a period
of risin g prices. Our calm, considered
ju d g m en t in financing th e in d u stry
m ust not be influenced a t any tim e by
easy m oney or risin g prices. We have
learned th a t w hen our ju d g m en t is so
influenced, th e re su lt is loss.”

M ERCHANTS
MUTUAL

BONDING
COMPANY
Incorporated 1933

Home Office
VALLEY BA NK BUILDING

Des Moines, Iowa

•

•

This is Iowa’s oldest surety company.
A progressive company with experi­
enced, conservative management. We
are proud of our hundred and fifty
bank agents in Iowa.
To be the exclusive representative of
this company is an asset to your bank.

•

•

W rite to

E. H. WARNER
Secretary and Manager

Iow a’s L argest B usiness T raining School

Many banks, bond-houses, insurance
companies and other financial insti­
tutions employ A. I. B. graduates.
Write or telephone when you need
efficient office employes.
E. O. F E N T O N , P resid en t

Amencan Institute of Business
DES MOINES
10th and Grand
Tel. 4-4203

EMPLOYERS
MUTUAL |
CASUALTY COMPANY
DES MOINES
An Agency Company — Assets Over $4,000,000
Automobile Insurance
• Workmen’s Compensation
• General Liability
• Elevator Insurance
• Plate Glass Insurance

80

Business Is Good

T he c ello p h an e p la n t p ic tu re d ab o v e is b e in g c o n stru c te d in C lin to n b y th e Du
P o n t C o rp o ra tio n , a n d is ra p id ly n e a rin g com pletion. I t is ju s t one of th e m an y
in d u s tria l e x p an sio n a c tiv itie s in C linton.

U R B A N K ER friends, business
m en and civic leaders of Clinton,
Iowa, are v ery h appy th ese days over
th e progress w hich th e ir city has m ade
in recen t years.
A ccording to inform ation reaching
us from our friends, Clinton has,
th ro u g h a conservative p ublicity cam ­
paign and th e com bined cooperative
effort of its business leaders, attra c te d
five good in d u stries since 1935.
The first in d u stry w as th e Rich M an­

O

u factu rin g Company, a toy factory
w hich started w ith about 35 em ployees
and now em ploys upw ards of 300.
The second, th e C linton G arm ent Com­
pany, opened here in 1936 w ith less
th a n 50 em ployees and now em ploys
n early 500. The Clinton C ulvert and
Supply Company, a new steel culvert
com pany, located here in C linton in
1936 and w hile not a large em ployer
of labor, it does pay good wages.
P robably th e m ost o u tstan d in g in-

An ultra modern hotel in the heart
of C hicago with comforts and serv­

d u strial achievem ent of the city of
Clinton is th e a ttractio n of th e E. I.
du P o n t de N em ours and Company
cellophane plant. T his plant, pictured
below, is now u n d er construction.
Tw elve h u n d red m en are em ployed
building the plant. A fter its com ple­
tion it w ill em ploy betw een six h u n ­
dred and seven hundred. The p lan t is
located on a 200-hundred acre tra c t
ju st so u th w est of th e city and since
the p resen t p lan t occupies only about
tw en ty acres, th e expansion possibili­
ties are v ery prom ising.
W ith th e advent of w ater tra n sp o r­
tatio n and building of docks, Clinton
has also a ttra c te d th e C ontinental
G rain Company, w ith a sizable grain
elevator. G rain is hauled from th e in ­
land area to Clinton for shipm ent later
to New O rleans and o th er so u th ern
ports by barge line.
N ot only has Clinton been able to
a ttra c t new industries, b u t h er presen t
in d u stries are operating at a v ery high
level. The Clinton Company, a large
starch and corn sy rup refining com­
pany, owns 107 acres and has 41.6
acres fenced for p lan t use. The grind
is 30,000 bushels of corn p er day. The
com pany is engaged in a building and
im provem ent program rep resen tin g a
one m illion dollar pow er plant, and the
en tire im provem ent program w ill cost
nearly tw o m illion dollars and will
take several m onths to finish. The
Collis Company, m an u factu rers of m a­
chine tools and w ire specialties, is also
engaged in a building program . All
o ther p lants are operating at norm al
capacity or above.
C linton has had to find hom es for
these new em ployees and is enjoying
the biggest hom e building program it
has experienced for a n u m ber of years.
W hen asked th e reason for indus­
tria l expansion, th e m en have sim ply
told us th a t first th ey tried to build a
city of w hich they can be proud. They
are quite boastful of th e ir parks, play­
grounds, th e ir T hree I League baseball
stadium , and th e ir fine m unicipal
sw im m ing pool.

ices offering you the ultimate in
excellent living.

Emil Eitel
Karl Eitel
Roy Steffen

''Known the world
over for good food'

R <
HKA6
AND
N o r th w e s te r n B a n k e r O ctober lD-'i0

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

LA SAL

WANT TO BUY— Controlling stock or
minority interest in north central or
north eastern Iowa bank. Address C. W.
care of Northwestern Banker, Des
Moines, Iowa.

SITUATION WANTED
In executive capacity by Bank Man
thoroughly qualified and experienced in
large National and small State banking.
Prepared to purchase substantial finan­
cial interest in small or fair sized, well
located bank affording good future pros­
pects. Age 42. Married and considered
of good personality. Write fully to: C.
B., care of Northwestern Banker, Des
Moines, Iowa.

81
T hey m ake it plain th a t none of th e
new in d u stries have been influenced
h e re by paying bonuses. T hey have
p articip ated som ew hat in th e a ttra c ­
tio n of th e in d u stries b u t over th e en­
tire five-year period have sp en t less
th a n four th o u san d dollars th ro u g h
th e In d u stria l Com m ittee of th e Cham ­
b er of Commerce.
T hey feel th a t th is in d u stria l exp an ­
sion has been p a rtly due to th e advent
of w a te r tra n sp o rta tio n , an ab u n d an t
supply of w a te r for m an u factu rin g
purposes, a rte sia n w ell w ater for m a n ­
u fa c tu rin g and d rin k in g purposes, o u t­
stan d in g tra n sp o rta tio n facilities and
ideal labor conditions.
No w onder th e m erch an ts of Clin­
ton sm ile and say, "B usiness is good,
th a n k you!”

>1

E

F a r m e r s N a t i o n a l C o m p a n y ............................
F e d e r a l D i s c o u n t C o r p o r a t i o n .......................
F e d e r a l H o m e L o a n B a n k of D es M o in es
F e d e r a l I n t e r m e d i a t e C r e d i t B a n k .............
F i n a n c i a l A d v e r t i s e r s A s s o c i a t i o n ..........
F i r s t F e d e ra l S a v in g s a n d L o a n A ssn..
F i r s t N a t i o n a l B a n k — C h i c a g o ...................
F i r s t N a t i o n a l B a n k — L i n c o l n ...................
F i r s t N a t i o n a l B a n k — O m a h a ......................
F i r s t N a t i o n a l B a n k — S i o u x C i t y .............
F i r s t W i s c o n s i n N a t i o n a l B a n k ..................
F i s h e r C o m p a n y .....................................................
F r a n k e l C l o t h i n g C o m p a n y ............................

31
36
76
37
6
78
75
24
42
60
54
8
79

M c G u i r e W e l c h a n d C o m p a n y ......................... 37
M e r c h a n t s M u t u a l B o n d i n g C o m p a n y . . 79
M e r c h a n t s N a t i o n a l B a n k ....................................
2
M i d l a n d N a t i o n a l B a n k a n d T r u s t C o . . . 51
M o n r o e C a l c u l a t i n g C o m p a n y ......................... 30

H
H a w k e y e M u tu a l H a il In s u ra n c e A ssn.
H o m e B l d g . & L o a n A s s n ................................
H o m e F e d e ra l S a v in g s a n d L o an A ssn.
H o m e I n s u r a n c e C o m p a n y ..............................
H o t e l B i s m a r c k .....................................................
H o t e l W e l l i n g t o n ..................................................

81
78
78
7
80
45

I n v e s t o r s S y n d i c a t e .............................................. 65
l o w a - D e s M o i n e s N a t l . B a n k & T r . Co. 84
I o w a I n v e s t m e n t B a n k e r s A s s o c i a t i o n . 32

O m a h a N a t i o n a l B a n k ..........................................

1*

S

S e c u r i t y N a t i o n a l B a n k .....................................
S h a w , M c D e m o t t a n d S p a r k s .........................
S t o c k Y a r d s N a t ’l B a n k — S t. P a u l .............
S to ck Y a rd s N a tio n a l B a n k —-O m a h a ...

1

A l l e n W a l e s A d d i n g M a c h i n e C o r p ..........
A. C. A l l y n a n d C o m p a n y .................................
A m e ric a n I n s titu te of B u sin e ss. . . . . . . .
A m e ric a n N a tio n a l B a n k & T r u s t C o ...
A n d r e w s H o t e l .......................................................

\

83
38
79
71
81

B
B a n k e r s T r u s t C o m p a n y ............................... 56-5 7
B r e w e r C o m p a n y , V . W ..................................... 38
B u r r o u g h s A d d i n g M a c h i n e C o m p a n y . . 44

T

T w i n C i t y F e d e r a l S a v . a n d L o a n A s s n . 78

J

U

U n i t e d F e d e r a l S a v . & L o a n A s s n ............ 78
U. S. C h e c k B o o k C o m p a n y ............................ 69

B ro th ers

>

L
L a M o n t e a n d S o n , G e o r g e ..............................
L a m s o n B r o t h e r s a n d C o m p a n y ..................
L e s s i n g A d v e r t i s i n g C o m p a n y ....................
L ive S to ck N a tio n a l B a n k — C h icag o . . . .
L i v e S t o c k N a t i o n a l B a n k — O m a h a ..........
L ive S to c k N a tio n a l B a n k — S ioux C ity . .

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

11

A

D a v e n p o r t a n d C o m p a n y , F . E ..........3 0 -4 4 - 6 9
D e L u x C h e c k P r i n t e r s , I n c ...................
74
D e s M o i n e s B l d g . L o a n a n d S a v . A s s n . 78
D r o v e r s N a t i o n a l B a n k ...................................... 67

J lc u a e ii G o ^ i
Our p o licy p rovid es a m axim u m
assessm ent o f 2*/2% in Zones
O ne and T w o— and 3 */2 % in
Z on e T h ree (W estern Iow a).

80
43
76
70
75

64
27

E

f

5
39
79
73
43
46

TRAVEL TREND

TH E

72
3
4
61
74

E l m s H o t e l .................................................................
E m p lo y ers M u tu al C asu a lty C o m p a n y ..

»
j*

V

........................................................ 79

V a l l e y S a v i n g s B a n k ........................................... 62

C

C e n t ra l H a n o v e r B a n k a n d T r u s t C o ...
C e n t r a l N a t i o n a l B a n k a n d T r u s t C o .. .
C h a s e N a t i o n a l B a n k ...........................................
C i t y N a t i o n a l B a n k ..............................................
C i t y N a t i o n a l B a n k a n d T r u s t C o ............
C o n tin e n ta l Illin o is N a tio n a l B a n k a n d
T r u s t C o .....................................................................
C o n t i n e n t a l N a t i o n a l B a n k ............................

69
38
52
40

J a m i e s o n a n d C o m p a n y ...................................... 52

Koch

A

21

P h i l a d e l p h i a N a t i o n a l B a n k ........................... 66
P o l k C o u n t y F e d e r a l S a v . & L o a n A s s n . 76

Iv
A

31
52
26
68
48

O

G

G e n e r a l M o t o r s A c c e p t a n c e C o r p ............... 34
G r e e n w a y a n d C o m p a n y .................................. 30
G u a r a n t e e M u t u a l L i f e I n s u r a n c e C o . . . 29

I

Index to
Advertisers

N
N a t i o n a l B a n k o f C o m m e r c e ...........................
N a t i o n a l B a n k o f D e t r o i t ...................................
N e b r a s k a H o n o r R o l l B a n k s ...........................
N o r t h e r n T r u s t C o m p a n y ...................................
N o r t h w e s t e r n N a t i o n a l B a n k a n d T r . Co.

45
79

V

A location in the center of the
downtow n district, with shops
and am usem ents n earby, at­
tracts tra v e le rs to this fine
hotel - w here they invariably
enjoy the comfortable accom ­
m od ations, the fine food in
the C o ffe e S h o p , a n d the
s u p e r io r s e r v ic e . G a r a g e
service. All rates reasonable.
50
W ITH O UT,
LUP
BATH

WITH
BATH

4th S T R E E T AT H E N N E P IN
A. W. STADE
M an a g e r

Hawkeye Mutual Hail

Insurance Association
Carver Bldg.

Fort Dodge, Iowa

‘V

H

ù

v n

&

a

f id

&

L

N o r th w e s te r n B a n k e r October 19W

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

82

In

the

Directors' Room
Wig W ag

W asted Effort

“T he cold in th e A rctic w as so in ­
tense th a t we couldn’t p at our dogs.”
“W hy not?”
“T heir tails w ere frozen so stiff th a t
th ey broke off if th ey w agged them .”

P ro fessor (finishing long algebra
problem ): “A nd so we find X equals
zero.”
Sophom ore: “All th a t w o rk for n o th ­
ing?”

>-

You Tell
W hy is it th a t m ost girls w a n t to
m a rry an econom ical m an, b u t none
seem to w an t to be engaged to one?

Late Date
Mrs. Doe (as Jo h n en ters house):
“W h at tim e is it? ”
John: “J u s t one o’clock.”
Mrs. Doe (as clock strik e s th ree):
“D ear me, how th a t clock s tu tte rs .”

Flivver Signs
H esit 8.
V iber 8.
E x asp er 8.
Spoon H older.
Chicken, H e re ’s Y our Coop.
Baby, H ere’s Y our R attle.
Shake, R attle and Roll.
Sister, You’d Look Tough W ith o u t
Paint, Too.
Laugh, B ut I P aid Cash for Mine.
F o u r W heels. F o u r B rakes. F o u r
More Instalm en ts.
D arling, I Am G row ing Old.
I R attle in My R ear E n d B u t I D on’t
Strike.
Capacity 5,000 Gals (One a t a Tim e).
Tack F inder.
I t A in’t Gonna R un M uch More.
T ru e Love N ever R uns Sm oothly.
D angerous B ut Passable.
Sound V alue—C an’t You H ear It?
T h e re ’s B eauty in E v e ry Jar.
F o r Sale, $1.98; W hile I t L asts.
W illie’s N ightie.
Dodge—No M etal Can Touch You.

Tain't Fair
Life is n ’t fair to us m en. W hen we
are bo rn o u r m o th ers get th e com pli­
m ents and th e flowers. W hen we are
m arrie d our brides get th e p resen ts
an d th e publicity. W hen w e die our
w idow s get th e life in su ran ce and th e
w in ters in Florida.

She G o t the Job
Producer: “If I gave you th e second
lead in th e show, w ould you go on
w earin g th is fe a th e r? ”
Dancer: “N ot so’s you could notice
it!”
Producer: “Swell! You’re th e first
lead.”
N o r th w e s te r n B a n k e r O ctober 1940

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

Crop Rotation

Deep Stuff

M other: “A fter all, h e ’s only a boy,
and boys w ill sow th e ir w ild oats.”
F ath er: “Yes, b u t I w ouldn’t m ind
if he d id n ’t m ix so m uch rye w ith it.”

“My wife and I w on’t q u arrel about
m y m other-in-law any m ore, a fter
w h a t happened y esterd ay .”
“So you b u ried th e h atch et?”
“No—ju st m y m other-in-law .”

Short Takes
Sign in library: Only low talk p e r­
m itted here.
W here th e re ’s a w ill th e re ’s alw ays
a b u n ch of poor relatives.
The co-ed has one g reat am bition—
to go w ith every Tom, Dick, and
m arry.
W om an hides $75,000 in bustle.—
H eadline.

T h a t’s a lot of m oney to leave be­
hind.

Reason Enough
“J u s t tell me one good reason w hy
you can ’t buy a new car now ,” said the
p e rsiste n t autom obile salesm an.
“W ell, I ’ll tell you, m an .” replied the
farm er, “I ’m still paying in stallm en ts
on th e car I sw apped for th e car I
trad ed in as p a rt p aym ent on th e car
I ow n now .”

O Wonderful Horsel
O horse, you are a w onderful thing;
No b u tto n s to push, no h o rn to honk;
You s ta rt yourself, no clutch to slip;
No sp ark to m iss, no gears to strip;
No license buying every year,
W ith plates to screw on fro n t and rear;
No gas bills clim bing up each day,
Stealing th e joy of life away;
No speed cops chugging in y o u r rear,
Yelling sum m ons in y o u r ear.
Y our in n e r tubes are all O.K.
A nd th a n k th e Lord, th ey stay th a t
way;
Y our sp ark plugs nev er m iss and fuss*.
Y our m otor n ever m akes us cuss.
Y our fram e is good for m any a mile;
Y our body n ever changes style.
Y our w an ts are few and easy m et;
Y ou’ve som ething on th e auto yet.

She Burns
“I h e a r th a t yo u r girl is so intellec­
tu a l she spends all h er tim e reading
th e classics.”
“Yes, b u t w h at can I do about it? ”
“You can squeeze th e D ickens out
of h e r.”

Oil Right
“W h at engines shall we use in th is
boat?”
“Oh, Diesel do.”

Com e Down
“It m u st be h a rd to come dow n to
e a rth w hen you live in a penthouse.”
“Oh, no! One good cyclone w ill do
th e tric k .”

A
r

M ore Par to You
“I ’ve got m ore w om en th a n you can
shake a stick at.”
“You’re n u ts.”
“W h at do you m ean?”
“I ’m a golf in stru c to r a t a fem ale
finishing school.”

i

k-

As th ey left th e n ig h t club, th e cute
blonde asked h e r escort, “Say, w h a t’s
th e idea giving th a t hatcheck girl five
dollars for checking y o u r coat?” A nd
th e escort w hispered, “Shh, n o t so
loud. I d id n ’t w ear a coat to n ig h t.”

He Sure Is

A

P anhandler: “G otta q u a rte r fer a
room tonight, m ister?”
Citizen: “No.”
P anhandler: “G otta dim e fer a ham
sandw ich?”
Citizen: “No.”
P anhandler: “G otta nickel fer a cup
of coffee?”
Citizen: “No.”
P anhandler: “Huh! You’re in a hell
of a fix, a in ’tch a?”

4

Not Quite
“If I had refused you, darling,” m u r­
m ured the rom antic m aiden, “w ould
you have driv en y o u r car over th e
b rin k of th e precipice, dashing us both
into etern ity , like th e lover we saw
in th e m ovie th e o th er n ig h t?”
“N-no, not th is car, honey,” a n ­
sw ered th e p ractical and tru th fu l
sw ain. “You see, I ’ve ju s t had new
tires p u t on.”

4
»
4

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