Full text of The Northwestern Banker : September 1972, 79th Year, No. 1308

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SEPTEMBER
Î972

ABA Convention
Banking Industry
in D allas

D a lla s C o n v e n tio n C e n te r

Annual Cattle Outlook
Exclusive Interview with

Exclusive Survey


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Federal Reserve Bank of St. Louis

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y

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S e p te m
r, 1972
Digitized
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;V

Y

CONVENTIONS
ABA—American Bankers Association
AIB— American Institute of Banking
ARBHC — Association of Registered
Bank Holding Companies
BAI—Bank Administraton Institute
BMA—Bank Marketing Association
CSBS—Conference of State Bank Super­
visors
IBAA—Independent Bankers Association
of America
NABW—National Association of Bank
Women
RMA—Robert Morris Associates
Sep. 17-20—ABA National Personnel
Conference, Sheraton-Dallas Hotel,
Dallas.
Sep. 17-21—NABW 50th Annual Con­
vention, Palmer House, Chicago.
Sep. 24-27—BAI 48th Annual Conven­
tion, Muehlbach Hotel, Kansas City.
Oct. 6-7—ARBHC Fall Meeting, Fair­
mont Hotel, Dallas.
,

Oct. 7-11— ABA 98th Annual Conven­
tion, Dallas.
Oct. 15-18—RMA 58th Annual Fall
Conference, Americana Hotel, Bal
Harbour, Fla.

Oldest Financial Journal Serving
The Central and Western States

for your SEPTEMBER, 1972, reading
79th Year
FEATURE ARTICLES
5
14
26
29
33

Oct. 22-25—Iowa Bankers Association
86th Annual Convention, Hotel Fort
Des Moines, Des Moines.
Oct. 2 9-Nov. 2-—BMA Annual Conven­
tion, Americana Hotel, Bal Harbour,
Fla.

48
49

Nov. 12-15—ABA 21st National Ag
Conference, Denver Hilton Hotel,
Denver.
Nov. 16-17— ABA 41st Annual MidContinent Trust Conference, Drake
Hotel, Chicago.

Beef Producers and Farmers May Have a Good Year— Earl L. Butz
The 1972 Annual Cattle Outlook— A N o rth w ester n B anker Survey
Veteran Livestock Banker Gives Advice to Young Feeders— E. V. Slije
Ankony’s Performance Evaluation Breeds High Quality Livestock
Brown Swiss Herd Is Good Investment
M arketing Program May Increase Value of Polled Herefords—Harold Hunter
Shorthorn Association Has 100th Birthday
Simmental Offers Four Advantages— Charles H. Dodge

OTHER FEATURES
50
54

Capital Adequacy and Competitive Equality— Lewis E. Davids
Creating New Markets for Bank Growth— James E. Brown

STATE BANKING NEWS

March 18-21, 1973 ■
— Independent Bank­
ers Association of America — 43rd
Annual Convention —■ San Francisco
Hilton Hotel, San Francisco.

Illinois
Minnesota
Twin City
South Dakota
North Dakota
Montana
Colorado
Wyoming
Idaho

Credit Card Conference
The American Bankers Association
recently held its 6th National Credit
Card Conference at Denver’s Brown
Palace Hotel. The theme of the conV ference was “Bank Card Opportunities
-— The Future Is Now.”
“The Future is Now” was the key­
note address delivered at the meeting
by Harold J. Steele, president of the
First Security Bank of Utah, Salt Lake
City. He is chairman of the Bank Card
/ Division of the ABA.
Other speakers included Herb Kaplow, news correspondent for ABC, and
George W. Mitchell, a member of the
Federal Reserve Board.

Conventions
Bank Promotions and Changes
Corporate News
Banking Industry Speaks Up in Dallas
Dallas — City of Many Attractions

ANNUAL CATTLE OUTLOOK
35
36
43
44
46
47

Oct.
16-18—MTM Association for
Standards and Research Annual Con­
fe r e n c e , Royal Coach Inn, Atlanta, Ga.

No. 1308

140
140

News
News
News
News
News
News
News
News
News

65
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89
89
91
94

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94
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108
115
132

Oregon News
Nevada News
Utah News
W ashington News
Nebraska News
Omaha News
Lincoln News
Iowa News
Des Moines News

In the Directors’ Room
Index of Advertisers

NORTHWESTERN RANKER
3 0 6 IS f h Street, Des N o in e s, lo w e 5 0 3 0 9 , Phene 5 1 5 — 2 4 4 -8 1 6 3

Chairman Emeritus
C liffo rd De Puy

Publisher

M alcolm K. Freelan d

Editor

Ben H o lle r, Jr.

Associate Editor

Undo l. lo rson

Advertising Assistant
M ildred Savich

Field Representative
AI K e rb e l

Circulation Department

Auditor

Field Representative

Field Representative

le n a Sotphin

Paul M asters

Bertha Sod erquist
G len Hicks

No. 1308. Northwestern Banker is published monthly by the Northwestern Banker Company, 306 Fifteenth Street, Des Moines, Iowa 50309. Subscrip­
tion 50 i per copy, $6 per year. Second class postage paid at Des Moines and at additional mailing office. Address all mail (subscriptions, ehaag® of
address, Form 3579, manuscripts, mail items) to above address.


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Federal Reserve Bank of St. Louis

5

BAI National Convention Slated
For Kansas City, September 24-27
City’s Municipal Auditori­
K ANSAS
um will be the scene of the Bank
Administration’s Institute’s 48th annual
convention, Sep­
tember 24-27.
This y e a r ’ s
meeting will con­
sist of two gen­
eral sessions, a
technical program
featuring m o r e
than 40 banking
experts on current
financial topics,
C. E. ARNER
and an extensive
ladies program. The program has been
planned by the Kansas City chapter of
the BAI, with James L. Rieger, presi­
dent of Kansas City’s Mercantile Bank
and Trust Company, serving as con­
vention chairman.
Charles E. Amer, president of the
BAI and senior vice president of the
First National Bank of St. Paul, will
call the convention to order on Mon­
day morning, September 25. He will
introduce George Clay, president of
the Federal Reserve Bank of Kansas
City, who will welcome an estimated
2,000 bankers and their wives from
financial institutions across the coun­
try.
The keynote address of the conven­
tion will also be given Monday morn­
ing by H. Ross Perot, chairman of the
board of Electronic Data Systems, Dal­
las, who also acquired the investment
banking and brokerage firm of Dupont

F o rth e kind of excite m ent tha t w ill
prom pt custom ers to th in k of you
often, and help you sell you r other
services, see the latest c o lle c tio n of
C hristm as C lub displays, prom otio n
pieces and coupon books from
Rand M cN ally. W rite fo r com plete
details, sam ples and prices.

Glore Forgan, Inc., in 1971, thus be­
coming the largest investor in Wall
Street. He gained widespread atten­
tion in 1969 for his campaign to obtain
humane treatment for U. S. prisoners
of war in Southeast Asia. Technical
aspects of bank audit, operations and
control will be discussed concurrently
on Monday afternoon and at Tuesday
sessions. Among the topics to be re­
ported on in the audit sessions are
auditor education, the changing inter­
nal audit organization, new techniques
in auditing and data processing, eval­
uation of internal auditors and the role
of external auditors.
The operations sessions will include
discussions on check handling, float
control and the regional clearing cen­
ters, electronic payment systems, data
processing operations management and
procedures, bank security, and social
problems affecting bank personnel.
The control sessions will hear re­
ports on approaches and objectives in
bank cost accounting, data processing
control and planning, profit planning
through asset and liability manage­
ment, the legal aspects of the holding
company, and the practical aspects of
holding company operations.
The annual business meeting will be
held on Wednesday morning, followed
by a report on the President’s Commis­
sion on Financial Structure and Regu­
lation by Dr. Donald P. Jacobs, chair­
man and professor of finance, North­
western University Graduate School of

Brighten your
Christmas Club
with designs from
Rand McNally.

RAN D M cN ALLY
Christmas Club Division

Box 7600, Chicago, III. 60680
405 Park Ave., New York, N.Y. 10022
206 Sansome St., San Francisco, Calif. 94104


Circle No. 1 For More Information
6
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Federal Reserve Bank of St. Louis

Management, and Dr. Harry P. Guen­
ther, president of Carter H. Golembe
and Associates, Washington, D. C.
BAI’s traditional “Ask the Experts”
sessions will take place on Wednesday
afternoon, during which delegates will
have an opportunity to ask their own
questions of the chairman and mem­
bers of the Institute’s nine technical
commissions.
The four day convention will close
on Wednesday evening with a banquet
and entertainment.—End

BAI School Held
A record enrollment of 957 bankers
attended the twentieth session of the
School for Bank Administration re­
cently, according to Julius E. Burges,
school director.
Founded in 1953 by Bank Adminis­
tration Institute, the school specializes
in bank audit, operations and control.
Included in this year’s enrollment were
336 bank auditors, 318 operations of­
ficers, and 221 controllers.
Guest lecturers for the session in­
cluded: J. Dewey Daane, Federal Re­
serve Board of Governors; Dr. Arthur
R. Upgren, professor Emeritus in eco­
nomics and finance, University of Min­
nesota; Bill Gove, public relations con­
sultant from Atlantis, Fla.; J. C. Welman, Jr. senior vice president, First
National Bank of Minneapolis, and
Henry J. Rohlf, executive vice presi­
dent, Morgan Guaranty Trust Co.,
New York.
The commencement address was de­
livered by John F. Nash, president of
the American National Bank and Trust
Co., St. Paul, and president of the
Minnesota Bankers Association.

Expand Stock Listing
The common stock of First Chicago
Corporation, parent company of The
First National Bank of Chicago, may
soon be trading on The Stock Ex­
change of London in addition to the
New York and Midwest exchanges, ac­
cording to plans announced.
First Chicago Chairman Gaylord
Freeman said an application to the
Council of the London exchange is be­
ing readied in London, toward intro­
duction of First Chicago shares for of­
ficial quotation on the exchange.
Three U.S. bank stocks now official- <
ly quoted on the London exchange are ,
all of New York. The first two, First
National City and Chase Manhattan,
are also among the nation’s top ten
money center banks with First Chica­
go. The third, Republic National, was
just recently quoted in London.
N o rth w e s te rn B a n k e r

H o w to
fe e l
•
••
• •
••

••

• • •• •î

;:

SECURE
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SECURITY

cancel ’etri
PERFORATOR:
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in p u t tape on labor ticke ts,
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Security procedures for the
handling of documents are only
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permanence, both in documents
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that must be destroyed. Only by
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S e p te m b e r, 1972
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Federal Reserve Bank of St. Louis

Circle No. 2 For More Information

4
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S A L E S AND S E R V IC E IN ALL P R IN C IP A L C IT IE S

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2,000 Women To Attend ISABW Meeting

A. P. STULTS

R. D. HARRISON

T least 1,500 to 2,000 representa­
tives of the 9,500 member Na­
tional Association of Bank-Women,
Inc. will attend the golden anniversary
meeting at Chicago’s Palmer House,
according to Convention Chairwoman
Ruth A. Steinke, assistant vice presi­
dent, National Boulevard Bank of Chi­
cago.
The meeting is scheduled for Sep­
tember 17-21. Preceded by a day of
NABW “Birthday Party”, the opening
ceremonies on Monday, September 18,
will involve greetings and welcomes
from civic and banking officials as well
as the NABW officers. Irving Seaman,
Jr., chairman of the executive commit­
tee and chief executive officer of the
National Boulevard Bank of Chicago,
will give a welcoming address.

A

R. A. STEINKE

H. 1. GERHART, JR.

Mrs. Ruth D. Harrison, assistant
vice president, Irwin Union Bank and
Trust Company, Columbus, Ind., will
be presiding over the convention as na­
tional president of NABW.
Prominent women from various
fields will discuss the ingredients for
successful careers at the general ses­
sion on Monday, September 18.
Among the announced participants
will be Katherine Elkus White, former
United States ambassador to Denmark.
A V.I.P. Bankers’ Panel will take
a look at “The Future Shape of The
Banking Industry” during a Tuesday,
September 19, general session. Mem­
bers of the panel will be: Donald M.
Graham, chairman of the board, Con­
tinental Illinois National Bank and
Trust Company, Chicago; Richard

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Federal Reserve Bank of St. Louis

WICHITA, KANSAS 67201

TELEPHONE (316) 264-8385

Circle No. 3 For More Information

Kattel, president, The Citizens &
Southern National Bank, Atlanta, Ga.,
and J. Irwin Miller, chairman of the
board, Irwin Union Bank and Trust
Company, Columbus, Ind. Moderator
for the panel will be Catherine B.
Cleary, president of the First Wiscon­
sin Trust Company, Milwaukee, Wis.
Presidents of other banking associa­
tions will address a general session on
Wednesday, September 20, outlining
the roles and functions of their organi­
zations, the part women have played
in their membership and program­
ming, and the future directions of the
banking groups.
Participants will be: Allen Stults,
president, American Bankers Associa­
tion and chairman of the board,
American National Bank, Chicago;
Charles E. Arner, president, Bank Ad­
ministration Institute and senior vice
president, First National Bank of St.
Paul, Minn.; Buell Duncan, president,
Bank Marketing Association and sen­
ior vice president, The First Bank at
Orlando, Fla., and H. L. Gerhart, Jr.,
president, Independent Bankers Asso­
ciation and president, First National
Bank, Newman Grove, Neb.
Twelve workshops featuring presen­
tations by prominent industry leaders
and table talk sessions on twenty var­
ied subjects are also programmed for
the convention.
Three special awards to women in
banking will be presented during the
convention. They are the Jean Arnot
Reid Award, which goes to a non­
member; the NABW National Scholar­
ship Award, presented annually to a
member on the basis of her rating in
A.I.B. certificate courses; and the new
NABW Memorial Scholarship Award
which may be awarded to either a
member or non-member studying in
bank-related areas for undergraduate
or graduate study.

New Lobby Depository
DeposiTeller, new lobby depository
from Meilink Bank Equipment, Tole­
do, Ohio, is now available with a
stylish and functional counter top. De­
signed for exact transactions not re­
quiring a teller, DeposiTeller promotes
faster customer service and reduces
lobby congestion.
The optional top attracts customers
with a pleasing contemporary design
that blends well with lobby decor.
Counter area provides adequate space
for customers to write out transactions.
Unique “pockets” hold deposit slips,
advertising literature, etc.
Circle No. 101 For More Information

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S e p te m b e r, ! 9 7 2

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Federal Reserve Bank of St. Louis

LEE

Circle No. 4 For More Information

forts in military and space programs
since 1960, has signed an agreement
for Brandt, Inc., Watertown, Wis., to
market and service its currency and
document counter.
This concludes the first phase of the
company’s planned expansion into the
office machine and financial institu­
tions market.
The counter, the COUNTESS, can
count a wide range of documents of
varying size, weight, finish and con­
dition even when intermittently mixed
without operator adjustments. It will
also endorse or cancel checks and food
coupons it counts at speeds of up to
1000 items per minute. The COUNT­
ESS is portable and weighs 20 pounds.
Brandt, Inc. has been a leading de­
PHOTO shows a typical configuration of the Cummins 4400 Peripheral Processing Sys­ signer and manufacturer of coin and
tem. At desk in center foreground is the CRT/keyboard unit. Rear, from left to right,
currency handling equipment since
are: The Cummins Scanak, an OCR and MICR scanner; tape storage unit; disk storage
1890. Its customers are banks, savings
unit with 4400 Processor, and a line printer.
and loan associations, vendors, super­
markets, department stores, discount
stores, and other operations where
HE new Cummins 440 Peripheral cable to a user’s major EDP site or re­ large volumes of money are accumu­
Processing System is called “the mote locations.
lated and must be counted for control.
A typical example of a remote sys­
first system designed to solve the total
Circle No. 103 For More Information
input problem by combining the com­ tem could be an MICR sorter-scanner
plementary benefits of key/disk and with several key-entry terminals used Meilink Bank Equipment
scanning entry hardware” by Cum- by a bank with off-premise updating. Offers Safe Deposit Boxes
The host computer at the central site
mins-Chicago Corporation.
Meilink Bank Equipment will offer
The lheart of the new system is the performs the account updating, gen­ safe deposit boxes starting with the fall
4400 processor that accepts both erates the report, and then transmits of this year. Special design concepts
scanned and keyed data, performing the report back to the remote Cum­ are featured to assure minimum main­
whatever editing, validating and bal­ mins 4400 for “on site” printing.
tenance and maximum security.
Circle No. 102 For More Information
ancing that may be required to pro­
The boxes will be available for rapid
duce tapes ready for single-run entry
delivery from one of Meilink’s strate­
to main frames. Included in the system Currency Counter Brings
gically located warehouses across the
are compatible scanners, CRT key ter­ PR A into New Market
country.
Pennsylvania Research Associates
minals, tape drives, disk drives, print­
Meilink Bank Equipment, with
ers and data communication control­ Inc., well known for its scientific ef­ headquarters in Toledo, Ohio, manu­
factures Sentinel visual drive-up sys­
lers.
Cummins claims three major advan­
tems, TV drive-up systems and other
tages for this system. One is the con­
related banking equipment.
venience and economy of a controller
Circle No. 104 For More Information
that can simultaneously edit both
LeFebure Introduces
keyed and scanned data. Another is
the simplicity of implementation, no
New 7 0 mm Camera
The LeFebure 2701, a new surveil­
computer-level programming is re­
lance camera that uses 70 mm film, has
quired. The third is the availability of
been introduced by LeFebure Cor­
much more efficient methods of re-en­
poration.
tering the inevitable rejects that ac­
The negatives, twice as large as
company optical scanning.
those of conventional 35 mm cameras,
The 4400 system provides several
command 13 degrees more coverage,
alternate methods of reject re-entry.
giving the user greater surveillance
All of them require only the rekeying
with fewer cameras. In addition, the
of those characters that did not scan
70 mm negatives can be enlarged for
rather than the complete documents.
bigger, clearer pictures.
The processor and disk storage permit
The camera features cassette load­
immediate rebalancing of batches after
ing. According to LeFebure, the 2701
rejects are keyed.
is no harder to load than an Instamatic
Because of the compatible data com­
munication controllers available, the THE COUNTESS, currency and document camera.
It is capable of taking individual
Cummins 4400 system is equally appli­ counter.

Data Entry System “Solves Input Problem "

T

Digitized
10for FRASER
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

N o rth w e ste rn B a n ke r

Did you know that there is a new shopping center fo r bank security equipment
in the West?
Allied Safe & V ault Co., Inc. manufactures and distributes nationally a fu ll line o f
security equipment
A fte r over 50 years o f selling, installing, rebuilding and servicing fo r other
manufacturers A llied decided 5 years ago to have their own brand.

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S e p te m b e r, 1972
https://fraser.stlouisfed.org
Circle No. 5 For More Information
Federal Reserve Bank of St. Louis

LeFebure 2701

up for a grand opening or special pro­
motion.
Invitation cards are mailed to the
public with an explanation of the grand
opening dates and how winning cards
are selected. When the cards are
brought in and fed into the Mystery
Teller, winners are selected electroni­
cally, accompanied by the sound of
trumpets and flashing lights.
Gifts are available on a take-back
basis from a large selection tested by
Diversified Financial Services, origi­
nators of the Mystery Teller. Winners
and people opening accounts may se­
lect gifts.

suspicion shots or a full alarm se­
quence at two frames per second and
adjusts automatically to light condi­
tions from 30 to 500 foot candles.
Normal lighting intensity is 100 foot
candles. A free brochure is available
by writing LeFebure.
LeFebure Corporation, headquar­
tered in Cedar Rapids, la., is a major
producer of banking equipment and se­
curity systems.
Circle No. 105 For More Information

Grand O pening Equipment
The Mystery Teller is a new way to
use direct mail as a program or back-

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The Chase Manhattan Bank has be­
come the first New York City commer­
cial bank to offer around-the-clock se­
curities processing services to its cor­
respondent banks, corporate and indi­
vidual customers.
«
Chase now keeps its central vault
in service 24 hours a day with three
shifts of employees operating to quick­
ly execute customer instructions in de­
livering or receiving securities.
“The key advantage of 24 hour
processing is that our customers will
now get to use their funds from sales
of securities at least a day and as much
as two days earlier,” says Frank
Dunne, senior vice president of Chase
Manhattan’s owner securities handling
group of the operations department.
The same day service now applies
to Clearing House funds as well as
Federal funds. On Clearing House
funds, same day service can now be
obtained on instructions given up to
8 a.m. On Federal funds transactions,
Mr. Dunne says the bank continues to
execute any instructions on the same
day received up to 12 noon.

The public offering of $ 100-million
of BankAmerica Corporation 65/s per
cent notes due Feb. 1, 1980 at 99.56
per cent, plus accrued interest from
Aug. 1, 1972, to yield 6.70 per cent,
Mystery Teller
was announced by Blyth & Co., Inc.;
Diversified Financial Services of Merrill Lynch, Pierce, Fenner & Smith
Chadds Ford, Penn, report that this Incorporated; Salomon Brothers and
equipment generates extra traffic Dean Witter & Co. Incorporated, as
joint managers of a nationwide under­
which then produces new accounts.
writing group.
Circle No. 106 For More Information
Net proceeds from the sale of the
notes will be added to the general
New Customer Service
A Shareholder Investment Service funds of the corporation and will be
which enables shareholders of partici­ available for various corporate pur­
pating corporations automatically to poses to be determined by manage­
ment. The corporation anticipates that
these purposes may include financing
Registers
the activities of existing or newly
"Accepted Sale Registers by Bank
formed or acquired non-banking sub­
Clerks Everywhere"
F o r in fo r m a tio n w r it e
sidiaries, although none of the pro­
THE ACORN PRINTING CO.
ceeds has been allocated for such pur­
O akland, Iowa
poses.

ACORN

MOTEL
2211 DOUGLAS
O M A H A , N EB R AS K A 68102^

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Federal 12
Reserve Bank of St. Louis

Circle No. 6 For More Information

4

Securities Processing
Round the Clock at Chase

$ 1 0 0 M illion in Notes

• DIRECT DIAL PHONES'
• 24 HOUR COFFEE SHOP

convert their dividends into additional
shares was announced in August by
The First National Bank of Chicago.
Albert E. Grinton, vice president in
the bank’s corporate securities section,
said shareholders may also elect to add
cash payments to the dividends to ac­
quire whole and fractional shares econ­
omically at a faster rate.

N o rth w e ste rn Banker

A R e p o rt on P ro d u c ts a n d S e rv ic e s o f In te re s t to B a n k e rs
Baffles The Black Box Gang
The Diebold Multi-Guard IV alarm system is specifically
designed to frustrate the increasingly prevalent criminal
practice of circumventing or duplicating alarm
monitoring signals with "Black Box” technology, thereby
compromising system integrity. The Multi-Guard IV
uses a two-way random digital interchange transmission
that virtually eliminates the possibility of line
compromise, yet because it transmits over low-cost signal
grade telephone lines, it can offer important economies.

Teller Line Cash Protection
With the Diebold Counter Cashgard®, your teller can
drop excess cash into a special compartment, removing
it from exposure that might tempt holdup artists. Fits
into standard teller counters, or can be used as a
free-standing unit. Cash tray drawers are key-locking . . .
excess cash locker has key-changing combination lock
with the option of a delayed control lock. Each unit has
V i" steel door. Coin storage unit has lA " steel plate
locker. In 23 colors and wood-grain finishes.

Which Remote Banking System For You?
We offer the most extensive line of remote banking
systems in our industry. That’s because we know there’s
no such thing as an average bank, and believe you should
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S e p te for
m b FRASER
e r, 19 7 2
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https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Circle No. 7 For More Information

13

Bank Promotions and Changes
ROMOTIONS and changes have
P
been announced by the following
metropolitan banks and bank groups:
Bank of America, San Francisco:
Three group vice presidents have been
named in the national division. They
are: Walter W. Minger, Richard W.
Groggin, and Robert W. Frick.
Mr. Minger joined the bank in
1946. He has specialized in agricul­
tural appraising and spending, and in
his new position he will head the food
and trade section of the national divi­
sion, overseeing bank relationships
with agribusiness firms throughout the
nation.
Mr. Groggin, who also joined the
bank in 1946, is in charge of the East­
ern region, international services sec­
tion, and transportation and utilities
section.
Mr. Frick, who is president of Small
Business Enterprises Co., the bank’s
wholly-owned small business invest­
ment company, will oversee bank re­
lationships with Midwestern and West­
ern manufacturing firms.
Bank of America also announced
the promotion of Richard K. Hoffman
to group vice president in the national
division in the San Francisco head­
quarters.
The section which Mr. Hoffman
heads maintains relationships with
building contractors, financial services
firms, and correspondent banks.
The appointment of Hugh Dough­
erty as vice president in charge of mar­
keting research was announced last
month. Named to succeed him as head
of the management sciences depart­
ment was Thomas Taggart, Jr., who
became vice president last year.
Chase Manhattan Bank, New York:
Laurence L. Suter and Franklyn Adler,
financial controls group, and Ernest F.
Gustavson, institutional banking de­

partment, have been named vice presi­
dents of the bank.
Central National Bank, Chicago:
Bruce N. Duff has been promoted to
vice president in the personal trust di­
vision, according
to Frank E. Bauder, chairman of
the board.
Mr. Duff joined
the bank a year
ago as a second
vice president in
the personal trust
division. Prior to
that he was with
Continental Illi­
nois National Bank and NicholsHomeshield, Inc. He is a graduate of
the University of Illinois and the Uni­
versity of Michigan Law School.
City National Bank & Trust Co.,
Kansas City: R. Crosby Kemper, Jr.,
chairman of the board, has announced
the promotion of three officers and the
election of one new officer.
Jerry L. Crutsinger was advanced
to vice president in Division II of the
banks, bankers and corporate ac­
counts. Mr. Crutsinger represents the
bank in the state of Kansas. A grad­
uate of Washburn University, he joined
City National in 1966.
In the investment department,
James C. “Pat” Thompson was named
vice president. Mr. Thompson is in
charge of bond sales. He joined the
bank in 1966 and is a graduate of the
University of Texas.
In the asset management depart­
ment, William P. Messer was advanced
to assistant vice president. He joined
the bank in 1962 after attending Au­
burn Junior College and Kansas Uni­
versity.
Also in the asset management de­

INSTALMENT DEPARTMENT
PROFITS

partment, Douglas F. Page was elected
assistant cashier.
Named special representative in the
banks, bankers, and corporate ac­
counts division was C. D. McCauley,
who will represent the bank in the state
of Kansas.
First National Bank, Chicago: Gay­
lord Freeman recently announced the
promotion of Edwin J. Lawson and
James G. Mason to vice presidents of
the bank. Mr. Lawson is employed in
the operations division, and Mr.
Mason is in the bond department.

J. G. MASON

E. J. LAWSON

Other new officer appointments in­
cluded: Stephen C. Bieneman, loan of­
ficer, loan division D; Jon Fell, as­
sistant manager, international section,
Geneva branch; Clarence D. White,
trust officer, trust department, and
James B. Jirikow and Philip A. LaRiviere, corporate finance officers, cor­
porate finance division.
First National Bank, Kansas City:
Cecil E, Sanders has been named as­
sistant cashier of the bank. Mr. Sand­
ers, who joined the bank in 1958, is
a member of the discount department.
He attended business college at Sedalia, Mo.
First National Bank of Arizona,
Phoenix: The board of directors last
month announced the election of pres­
ident Robert D. Williams as chief ex­
ecutive officer and chairman of the ex­
ecutive committee, and the election of
executive vice president Edward M.
Carson to the post of chief adminis­
trative officer.

More important than ever before!

PROTECT THEM
Several hundred Upper Midwest banks utilize our single interest coverage,
which we originated many years ago. No checking for primary insurance.

Instalment lending protection is our only business.

Call or W rite: G. D. VAN WAGENEN CO.
1006 N.W. Bank Bldg., Minneapolis 55402
(612) 333-2261
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Federal Reserve Bank of St. Louis

HAZELTINE

WILLIAMS

CARSON

Both men assumed their new duties
on September 1.
The board also announced that
Sherman Hazeltine, who has served as
N o rth w e ste rn Ba n ker

. . Don’t let the
big one get aw ay.
What do you do about a loan that's a little too big for you to
handle? Or one you prefer not to handle by yourself? Suggestion: cast
a line in Citibank's direction. Through commercial lending officers
who have the authority to make decisions, we can move quickly to
provide the financing capacity you need to land the big ones.
And remember, Citibank helps you keep your customer what you
want him to b e —your customer. We share the loan—you get the credit.
To get specific, write our Correspondent Bank Department,
399 Park Avenue, New York, N.Y. 10022. Or call (212) 559-2411.
F IR S T N A T IO N A L C ITY B A N K » ® «
Bankers everywhere call us “Citibank”

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Federal Reserve Bank of St. Louis

¿eivYoit

chairman and chief executive officer The promotions of two new officers
for 14 years, will continue to serve as and the elevation to officer status of
a staff member
board chairman, and will concentrate
were announced
his activities in the area of commercial
by Milton F. Darr,
business development. “The board’s
Jr., chairman, and
action,” Mr. Hazeltine said, “culmi­
Frank G. Price,
nates plans long in the making for an
president.
orderly transition of executive office
Baron Octave
responsibilities.”
Harris Trust and Savings Bank, Chi­
de Juniac was
elected s e n i o r
cago: Five new senior vice presidents
have been elected in recent action by
vice president and
European repre­
the board of directors.
O. DE JUNIAC
In the banking department, Edward
sentative in the
K. Banker, head of the U. S. group was international banking group. Baron de
named senior vice president.
Juniac joined LaSalle in 1971 as vice
president and European representative
for the United Kingdom and the Euro­
pean continent.
Edward L. Fleming was named as­
sistant vice president in the personal
trust division. He came to the bank in
1966 and has worked in the land trust
division and the personal trust admin­
istration division.
Cora Mae Lindy was promoted to
E. K. BANKER
S. FLETCHER
trust officer in the employee benefits
division. She joined the bank’s trust
department as a secretary in 1957. She
has recently been manager of the pen­
sion and profit sharing division.
Manufacturers Hanover Trust Co.,
New York: Manufacturers Hanover
Leasing Corporation, a subsidiary of
Manufacturers Hanover Corporation,
last month announced the election of
Charles E. Woodruff as chairman of
J. L. STEPHENS
P. T. SMITH, JR.
the board, Paul J. Hanna, vice chair­
Stanley Fletcher, officer-in-charge of man, and Karl M. Parrish as president.
Other officers include Robert C. Isthe banking operations group, and
Thomas G. Lynch, who directs the in­ ban, controller and treasurer; Stanley
formations systems group, were pro­ van den Heuvel, secretary, and Robert
moted in the operations department. L. Burke and John A. Robb, assistant
Other new senior vice presidents in­ vice presidents.
clude Philip T. Smith, Jr., head of the
Mr. Woodruff is executive vice pres­
investment department’s municipal ident of Manufacturers Hanover Trust
bond division, and John L. Stephens, Company, Mr. Hanna is executive vice
president of Manufacturers Hanover
head of personnel administration.
LaSalle National Bank, Chicago: Corporation and Mr. Parrish is vice

Q u alified Real Estate A ppraisers & Counselors

ß u v t e t t 8- A m m iu Richard R. White
106 E. Main Street
Telephone 515-842-2115

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Federal Reserve Bank of St. Louis

Wm. W. Burrell
Knoxville, Iowa 50138

Circle No. 9 For More Information

president in charge of MHT’s leasing
department.
The MHC leasing subsidiary will in­
vest in conventional leases involving
such personal property as business air­
craft, small and medium-size computer 4
systems, machine tools and heavy in­
dustrial, construction and process con­
trol equipment. It also will engage in
all types of leveraged leases and will
act as agent or broker in connection
with such lease transactions and oth­
ers.
Leasing investments also will be of­
fered to major correspondent banks.
Mercantile Bancorporation, Inc., St.
Louis: Trenton National Bank, Tren­
ton, Mo., has become an affiliate of
Mercantile Bancorporation, according +
to Donald E. Lasater, chairman of
Mercantile. Trenton National reported
total assets of $23,044,537 as of June
30, 1972.
Mercantile Trust Co., St. Louis:
Donald E. Lasater, board chairman,
has announced the election of Andrew FN. Baur as a vice president of the
bank. The following promotions also
were announced: Mrs. Janice Barkley
Rennie, assistant vice president; Rob­
ert W. Bloemker, data processing of­
ficer, and Michael D. Rosenfeld, as­
sistant investment officer.
Mr. Baur has been an assistant vice
president in the commercial lending di­
vision of the bank since 1971.
Mrs. Rennie, who was in the invest­
ment research division of the trust de­
partment, joined the commercial lend­
ing division of the bank effective Au­
gust 14.
Northern Trust Company, Chicago:
The election of W. James Armstrong
as senior vice president was an­
nounced by the bank’s executive com­
mittee. Mr. Armstrong will head the
national group in the banking group.
He has served the past three years as
vice president and manager of the
bank’s London, England, branch of­
fice.
United Missouri Bancshares, Inc.,
Kansas City: R. Crosby Kemper, Jr.,
chairman and chief executive officer,
has announced
the election of
E. J. Robertson
as vice presi­
dent.
Mr. Robert­
son was previ­
ously associated
with
another
K a n s a s City
bank. He is a
E. J. ROBERTSON
N o rth w e stern Banker

the “Countess”'
is after
currency,
food stamps,
checks,
coupons,
et cetera
et cetera
et cetera

N E W

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B R A N D T
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Federal Reserve Bank of St. Louis

D T,

W ATERTOW N, W i 5 3 0 3 4
S IN C E

1B S O

ine.

Mobile Home
Financing

does it still look
like peanuts to you?

graduate of the University of Oregon
and the University of Wisconsin Grad­
uate School of Banking.
In his new position, Mr. Robertson
will work with the holding company’s
member banks in the areas of credit
and general administration.
Valley National Bank, Phoenix,
Ariz.: A vice president and two assist­
antvice presidents have been named
by the board of
directors, accord­
ing to Earl L.
Biinson, p r e s ident.
Doris S h a w ,
formerly assistant
v i c e president,
was promoted to
vice president. A
graduate of Rider
D. SHAW
College in Tren­
ton, N. J., Miss Shaw joined Valley in
1949 as a secretary in the economic
development department. She became
an officer in 1955, and was named as­
sistant vice president in 1964.

G. M. SILVERTHORNE

The belief that mobile home loan yields are too small
in proportion to the risk involved ... a lot has happened
lately to change that picture.
First, the market has changed. Today, two-thirds
of all single family housing sales under $25,000 are
mobile home sales.
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disappeared. CMI now insures the full principal amount
of your mobile home loans. A real opportunity for
lenders? It’s hard to find a better one.
Our skilled underwriters and approved service
companies can help you get started. We’ll also send
you a folder of facts on mobile home lending.
Just ask and it’s yours.
Telephone: (Toll Free) 1-800-356-8080

CMI
Credit Insurance, Inc.
Subsidiary oi CMI Investment Corp.

Home Office: 2 East Gilman Street, Madison, Wisconsin 53701

Circle No. 11 For More Information
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18
Federal Reserve Bank of St. Louis

M. G. HAEFLI

Grady M. Silverthorne and Marian
G. Haefli were promoted to assistant
vice president. Mr. Silverthorne, who
joined the bank in 1967, is in con­
sumer lending services. Mrs. Haefli,
who was also appointed director of
special promotion in the bank’s corpo­
rate planning and marketing division,
has been with the bank since 1970.
Prior to that she was an assistant vice
president at the Prudential Savings
Bank in New York.

jo in s BankAmericard
Aram L. Tootelian has been elected
president for National BankAmericard
Incorporated (N BI), San Franciscobased administrative organization for
the BankAmericard program in the
United States. Mr. Aram will be re­
sponsible for the systems effort of NBI
including software, hardware, and
member support. He was formerly
general manager, Information Systems
and Services Division, TRW, Inc.,
Redondo Beach, California.
Northwestern B a n ke r

*

V

-

i-

Robert Morris Plans 58th Convention
RANK WILLE, F o i e chairman,
F
has been added to the list of speak­
ers, for RMA’s 58th Annual Fall Con­
ference in Bal Harbour, Fla., October
15-18.

“Is the Lead Bank Doing Its Job?”
— Moderator: Garland Carver, vice
president, Iowa-Des Moines National
Bank, Des Moines.
“Lending to Conglomerates” —
Moderator: A. C. Rice, executive vice
president, Bank of America, San Fran­
cisco.
“The Think Tank” — Moderator:
Harry Meily, executive vice president,
Security-Pacific National Bank, Los
Angeles.

Tuesday, October 17
The RMA Players Present — John E.
W. PATMAN
D. OSTLUND
Williams, III, senior commercial offi­
Other Conference speakers will in­ cer, First Pennsylvania Bank, Phila­
clude Congressman Wright Patman delphia, and William R. Bailey, as­
(D~Tex), chairman of the House sistant vice president, Marine Madland
Banking and Currency Committee; Bank — Western, Buffalo, N. Y.
former assistant director of the budget Luncheon Address -— Dr. Harry
Dr. Maurice Mann, evp, Western Guenther, president, Carter Golembe
Pennsylvania National Bank, Pitts­ Associates.
burgh; Thomas Storrs, president, “International Loans — Our Next Big
North Carolina National Bank, Char­ Charge-Offs?”, panel discussion —
lotte; Dr. Harry Guenther, president, Moderator: James A. Harper, man­
Carter Golembe Associates; and Ezra ager, Brown Brothers Harriman & Co.,
Solomon, a member of the President’s New York.
Concurrent Workshops —
Council of Economic Advisers.
“Inventory & Receivables Lending
Speakers from RMA’s official family
—•
A Specialist’s Approach.”
will be President Dow Ostlund, evp,
“An Amateur’s Guide to Real Es­
The Valley National Bank of Arizona,
tate Appraisal.”
Phoenix; First Vice President John J.
“Construction Lending for NonFawley, president, United Virginia
Professionals.”
Bank/First and Citizens National,
“Growing Pains” (a discussion of
Alexandria; and Executive Manager the loan administration problems
Clarence Reed.
which occur when banks move from
The program outline follows:
small to medium-sized status).
Monday, October 16
“Lending Problems in Smaller
RMA President’s Address — Dow Banks.”
Ostlund, executive vice president, The
Valley National Bank of Arizona,
Phoenix.
Address — Frank Wille, chairman,
Federal Deposit Insurance Corpora­
tion.
Address — Henry Kearns, chairman
and president, Export-Import Bank of
the U.S.
[* Address •— Maurice Mann, executive
vice president, Western Pennsylvania
National Bank, Pittsburgh.
Luncheon Address — Ezra Solomon,
Council of Economic Advisors.
[' “Young Presidents”, panel discussion
- Moderator: Dr. Donald Sauer, pro­
fessor of finance, Indiana University
Graduate School of Business.
Concurrent Discussions —*
“The Presidential Commission” —
Rex Morthland, chairman, Peoples
Bank and Trust Co., Selma, Ala.
E. SOLOMON
F. WILLE

mm


Septem ber,
197 2
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

“Lending to Road Contractors.”
“The Ideal Credit File.”
“Marketing Commercial Services.”
“Developing Lending Personnel.”
Wednesday, October 18
Address —• Rep. Wright Patman (D.Tex.), chairman, House Banking and
Currency Committee.
Address — Thomas Storrs, president,
North Carolina National Bank, Char­
lotte.
RMA President’s Address (1972-73)
—■ John Fawley, president, United
Virginia Bank-First & Citizens Na­
tional, Alexandria. — End.

Low Prem ium Program . .
For Directors & Officers
A new low premium directors & offi­
cers liability insurance program has
been developed by Interstate National
Corporation, Chicago. Three year pre­
miums range from as low as $1,000
for smaller financial institutions.
The Chicago based specialty insur­
ance firm designed the program exclu­
sively for banks and savings & loan as­
sociations. Deposits must be less than
$15 million at last year end, and the
firm must have been continuously in
business for three years.
A standard deductible of $5,000 ap­
plies. No participation is required in
excess of the deductible, except in
states which have legislated otherwise.
The new program is written through
the companies of the Interstate Insur­
ance Group. The IIG also designed a
lender’s protective coverage which is
a comprehensive loan security insur­
ance program for financial institutions.
These and other bank programs are
underwritten through all 10 of Inter­
state’s offices. Coverage is written
through local insurance producers.
Interstate National Corporation is
the operating company for Geo. F.
Brown & Sons. Inc.. Higham, Neilson,
Whitridse & Reid, Inc., Interstate Fire
& Casualty Company, and Chicago In­
surance Comnany.
Circle No. 107 For More Information

BankAmerica Earnings
Continued gains in earnings, depos­
its and resources highlighted the mid­
year report of BankAmerica Corpora­
tion, President A, W. Clausen has an­
nounced.
Consolidated income before securi­
ties transactions for the six months
ended June 30 increased by 4.3% to
$84,162,000 or $1.22 per share.
21

JBMA Convention Program Is Announced
ERRY Della Femina, Huw Wheldon and NEWSWEEK maga­
zine’s Periscope Panel are the featured
general session speakers at the Bank
Marketing Association’s 57th annual
convention.
The convention, scheduled for Oc­
tober 29-November 2, will be held at
the Americana Hotel in Bal Harbour,
Fla. An extensive three-day program
has been announced by BMA Presi­
dent Buell G. Duncan, Jr., senior vice
president, First National Bank of Or­
lando, Fla.
The BMA convention, which an­
nually attracts bank marketing profes­
sionals from around the world, is being
organized this year by general conven­
tion chairman William N. Flory, vice
president at the Harris Trust and Sav­
ings Bank, Chicago, and first vice pres­
ident of the Association, and program
chairman, Norwood W. Pope, vice
president, First-Citizens Bank & Trust
Co., Raleigh, N.C.
Official program activities begin
Monday morning, October 30, with
Mr. Wheldon, managing director of the
BBC, giving the keynote address. His
credentials include writing television

J

B. G. DUNCAN

W. N. FLORY

series, producing television talk shows,
and directing and appearing on numer­
ous BBC television programs.
Tuesday’s general session speaker
will be a panel — NEWSWEEK mag­
azine’s Periscope Panel, moderated by
Osborn Elliot, chairman of the board
and editor at Newsweek, Inc. The pan­
el, composed of senior editors, bureau
chiefs and correspondents will analyze
and comment on important news
events of the day. Questions may be
submitted to the panel the day before
the session.
Jerry Della Femina, who wrote
“From the Wonderful Folks Who
Brought You Pearl Harbor,” and
turned the advertising world upside
down in the process, will address Wed-

nesday’s concluding general session.
Holder of positions ranging from mail
clerk to agency head, Mr, Della Fem­
ina presently holds the top post at Del­
la Femina, Travisano and. Partners,
New York.
This will be the busiest convention
BMA has ever offered to its member­
ship. Along with general sessions, de­
partm ental, workshops, dawndusters,
and rap sessions, there will be a num­
ber of special bonus events.
On Monday, the controversial film, v
“Banks and the Poor,” will be shown
to the general session audience. This
will be followed by a presentation from
William Ruder, president of Ruder &
Finn, Inc., New York, representing the
Foundation for Full Service Banks.
Mr. Ruder’s topic — “Survival or M
The annual Golden Coin Awards
Luncheon will be held Tuesday. Out­
standing marketing and public affairs
programs from the banking industry
will be recognized with the coveted fGolden Coin trophies and certificates.
For further information on the con­
vention or any other BMA-sponsored
programs, write to Director, Division
of Communications, Bank Marketing
Association, 309 West Washington St.,
Chicago, 111. 60606.

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Federal Reserve Bank of St. Louis

Circle No. 12 For More Information

J
Northwestern B a n ke r

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S e p te m b e r, 1 9 7 2
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Circle No. 13 For M ore Information

23

VA Says Mobile Home Loan Applications
Reached 7.000 Mark and Are Increasing

M

ORE than 7,000 applications for
mobile home loans have been re­
ceived by the Veterans Administration
since it was empowered 19 months ago
to guarantee these loans to veterans of
the United States Armed Services.
The total was released by the VA
recently to the Mobile Homes Manu­
facturers Association, the non-profit
trade association whose membership
comprises manufacturers and suppliers
in the factory-built housing industry.
“Applications have increased to
more than 600 per month through
May this year,” a VA spokesman com­
mented. “Interest in financing mobile
homes under the VA program has
been very good.” He said the organi­
zation’s automatic lending program,
designed to shorten loan processing,
is now available in 12 states.
Under the VA program, veterans
who are eligible for loans are not re­
quired to make a downpayment.
VA guaranteed loans cover the pur­
chase of the home itself or the home
plus the land on which the dwelling is

Hold Small Bank Forum

A four day forum for presidents of
small banks was held at the Broad­
moor Hotel in Colorado Springs, spon­
placed. They also insure financial in­ sored by the Bank Administration In­
stitutions against loss on loans they stitute.
grant. As of March, this year, VA had
The forum is the fourteenth such
guaranteed mobile home loans nation­ meeting conducted semi-annually by
wide totaling about $29 million.
BAI’s Smaller Bank Commission for
To help promote its insurance pro­ chief executive officer of banks with
gram, the VA has reprinted and dis­ assets under $25 million.
tributed 700,000 copies of TIPS ON
A breakfast discussion kicked off
M OBILE HOME SELECTION, a the forum, headed by chairmen and
consumer booklet prepared by MHMA members of BAI’s seven technical
and the Council of Better Business commissions, enabling those at the
Bureaus, Inc. The brochure describes meeting to discuss specific problems
how to choose a mobile home, where with the most technically competent
to put it and how to finance it.
individuals in the areas of bank ac­
Maximum VA loan guarantees for counting, audit, operations, personnel
the purchase of a mobile home only administration, security, and taxes and
are $10,000 payable in 12 years and
trust.
32 days. If the veteran owns the site,
The keynote address was delivered
an additional sum can be borrowed for by Dr. Lewis E. Davids, Hill professor
improvements.
of Bank Management, University of
A veteran who wants to purchase Missouri. Among other speakers were
a mobile home plus an undeveloped B. Glen Jordan, president of the State
lot may borrow up to $15,000, payable Bank of El Paso, Tex,; Dr. F. Byers
in 15 years and 32 days. An additional Miller, BAI executive director, and
loan can be obtained to cover the cost Gerald T. Dunne, vice president of the
of site preparation in a sum to be de­ Federal Reserve Bank of St. Louis.
termined by the VA administrator.
Edward K. Johnston, II, is chairman
of the Smaller Bank Commission. He
is president of the Keokuk Savings
Bank and Trust Co., Keokuk, la.

Offers $ 7 5 ,0 0 0 ,0 0 0
Notes D ue 1 9 8 0

Amfac, Inc.
has acquired

Commonwealth, Inc.
from

GAC Corporation
The undersigned initiated- this transaction andassisted in the negotiations.

Smith, Barney & Co.
In c o rp o r a t e d


https://fraser.stlouisfed.org
24
Federal Reserve Bank of St. Louis

Chemical New York Corporation,
whose principal subsidiary is Chemi­
cal Bank, recently filed a registration
statement with the Securities and Ex­
change Commission covering a pro­
posed public offering of $75,000,000
of notes due April 15, 1980.
The offering was made in August
by an investment banking group man­
aged by Kuhn, Loeb & Co., The First
Boston Corporation and Hornblower
& Weeks-Hemphill Noyes.
The notes may not be redeemed
prior to September 1, 1979. On and
after such date they will be redeemable
at the option of the company.
Application will be made to list the
notes on the New York Stock Ex­
change.
A major portion of the proceeds of
the issue will be made available to the
bank for use in the operation of its
banking business. The remainder will
be retained by the company for invest­
ments in or extensions of credit to ex­
isting or future banking or non-bank­
ing subsidiaries.
N o rth w e ste rn B a n k e r

around m oney the fin e s t iS
A U T O M A T IC COIN W R A P P E R
A m ou nts and d e n o m in a tio n s a u to m a tic a lly in d ic a te d by
patented ' re d bordered w in d o w s ” . A m o u n ts in w indow s
alw ays in re g is te r. . . elim in a te s m istakes. A ccom m odates
all coins fro m l c to $1.00.
T U B U L A R COIN W R A P P E R
E specially designed fo r m a chine f i l l i n g . . . a real tim e-saver.
Packed fiat. In s ta n t patented "P o p O pe n” actio n w ith fin g e r
tip pressure. D eno m ina tions id e n tifie d by color c o d in g . . 6
d iffe re n t stan dard colors.
R A IN B O W COIN W R A P P E R
C olor coded for quick, easy id e n tific a tio n . Red fo r pennies . . .
blu e fo r nickels . . . green fo r dim e s . . . to ind ica te q u a n tity
and d e n o m in a tio n s . . . e lim in a te s m istakes. Tapered edges.
DUZITALL COIN W R A P P E R
Extra w ide
. extra strong. Designed fo r areas w here halves
are w rapped in $20.00 packs . . . " r e d bordered w in d o w ” fo r
ease o f id e n tific a tio n . A ccom m odates $20.00 in dollars. $20 00
in halves. Tapered edges.

S


S e p te m b e r, Î 9 7 2
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

5

I

1

*

OLD ST Y L E COIN W R A P P E R
Basic coin w rap per in extra s tro n g k ra ft stock. P rinted in 6
d iffe re n t stan dard colors to d if f e r e n t ia t e de n o m in a tio n s
T r ip le d e s ig n a tio n th r o u g h colors, p r in t in g and letters.
Tapered edges.
K W A R T E T COIN W R A P P E R
W raps 4 d e n o m in a tio n s in h a lf size packages. A m in ia tu re o f
th e po p u la r "A u to m a tic W rapper” . . . 25c in pennies, $1.00 in
nickels, $2.50 in dim es, $5.00 in qu arte rs.
F E D E R A L BILL S T R A P
Package con tents clearly id e n tifie d on faces and edges by
co lo r coded panels w ith inverted and reverse figures. Made
o f extra stro ng stock to assure unbroken deliveries. Only pure
d e xtrine g u m m in g used.
C O L O R E D BILL S T R A P
E ntire strap is color coded to id e n tify d e n o m in a tio n P rinted
a m o u n t appears on to p and bo tto m o f package. Extra w ide
fo r m a rking and stam ping. Extra stro ng stock fo r safe de live ry
and storage. Pure dextrine gu m m in g .

BANDING S T R A P S
Ideal fo
packing
d e posit ticke
ts, ctiecns,
checks, e
etc.
,w,r puvm
nft vcurrency,
u ii cuuy, ucpuau
uLivcib,
tc .. . . do n o t break
o r d e te rio ra te w ith age. Size 10 x \ inches and made o f stro ng brown
K ra ft stock w ith gum m ed end fo r ease o f sealing. Packed 1000 to a carton.

Circle No. 14 For More Information

Corporate News
ROMOTIONS and other
P
announcements have been
by the following firms:

news
made

CMI Investment Corporation, Mad­
ison, Wise.: An agreement has been
reached for purchase of Management
Data Systems, Inc. by CMI. Under the
merger, 45,750 CMI shares will be ex­
changed with the eleven shareholders
of MDS holding its 132,910 shares.
MDS is headed by Jon Romnes and
serves some 285 customers in 17 dif­
ferent states. It was noted by Bruce
Thomas, president of CMI, that MDS
will pursue a separate pattern of cor­
porate growth from external sources
while, at the same time, expanding its
service to CMI, for whom it has sup­
plied data processing on a contract
basis for several years.
Carter H. Golembe Associates, Inc.,
Washington, I>. C.: A west coast of­
fice of the company has been opened
in San Francisco, and two new associ­
ates have been appointed to staff the

Can you stop your
drive-in patrons to
sell other services?

office. They are Robert D. Dickey and
John T. Ponting.
Mr. Dickey has been manager of
management sciences for the Bank of
California, N.A., for the past four
years. Prior to that he was with the
First National Bank of Chicago for two
years as a management science analyst.
Mr. Ponting also comes to the com­
pany from Bank of California where
he has served as manager of manpower
planning and personnel research and
then director of training and communi­
cations.
Delta Corporation of America,
Miami, Fla.: Arthur T. Bastian has
been elected president of the company
to succeed Gilbert
A. Haas, who
was elevated to
chairman of the
board.
Mr. Bastian has
been an officer of
the company since
1964, and was
executive v i c e
president before
his new appoint­
ment. He is also a director of the com­
pany.

NOW

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Tension DRIVE-IN deposit
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https://fraser.stlouisfed.org
Circle No. 15 For More Information
Federal Reserve Bank of St. Louis

Lummms

)

IN BUSIN ESS AND BANKS

£

SIN C E IBtT

C U M M IN S - C H IC A G O C O R P O R A T IO N
A C I I« « I N J - A I I I J O *
COM PANY
ATAON.Bavens»MA,e. ■Cacato IL 60610 L3IB) >61 6600
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29-1289

Circle No. 16 For more Information

1961 and has been its only president.
Under his direction, the company
grew to the point where it financed
17,704 mobile homes in 1971 at $173
million.
Lawrence Systems, Inc., San Fran­
cisco: Arthur B. Adams, president, an­
nounced last month the opening of the
company’s third
Canadian (Lawr e n c e Systems,
Ltd.) office. This
office is b e i n g
opened, he said,
to handle the
rapid expansion of
Lawrence’s serv­
ices in Canada
which were first
0. A. SHIATY

introduced

0

4

in

1969 with the initial offices at Toronto
and Vancouver.
A reception was held for the Cana­
dian bankers in the Montreal area with
approximately 75 bankers attending.
Mr. Adams spoke briefly to the bankers
regarding the new office and the con­
venience for the banker of having an
office right there in Montreal. He fur­
ther announced that Dean A. Shiaty, a
bilingual Canadian, will be district
manager of this office, reporting to
John Bolus, vice president at Toronto.
Mr. Shiaty was previously associated
with the Toronto office of Lawrence
Systems, Ltd.
John Kammerer, regional manager
in Atlanta, announced two appoint­
ments in his area. Kenneth St. Ger­
main was promoted from customer
representative in New Orleans to op­
erations officer in Atlanta. Anthony S.
Duane was named sales representative
in the Memphis, Tenn., area.

f

MGIC Investment Corporation:
Leon T. Kendall, president of the Se­
curities Industry Association, has been
elected a director, according to Max
H. Karl, president.
The election of Dr. Kendall repre­
sents an addition to the company’s i
board. He will also serve on the board
of Mortgage Guaranty Insurance Cor­
poration, the major subsidiary of MG­
IC Investment Corporation.
Dr. Kendall was named president
of the Association of Stock Exchange
Firms in 1967 and was its first full­
time president. The Association of
Stock Exchange Firms merged with the
Investment Bankers Association of
CORPORATE NEWS . . .
( Turn to page 58, please)

Third party
collateral control.
We wrote
the book on it.
N
NYTCO SERVICES, INC.
1605 School St., Moraga, Calif. 94556

30 Offices Nationwide

NYTCO, one of the world’s largest third party collateral control companies, would like to get to know you.
But before we do, we want you to know all about us.
All about the services we offer and the company offer­
ing them to you. We even wrote a book on it, the most

complete in the field of third party collateral control
In it you’ll find out exactly what services are available
to you as well as how you can profit from our work.
We figure after 50 years in the business, we’ve got a
lot to say.

NA M E___________________________________________________

_________TITLE________________________________________

BANK.
ADDRESS.

.STATE.

CITY.

.ZIP.

N Y IC D
SERVICES
One of the world’s largest third party collateral control companies.


Septm m b«r, 1972
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Circle No. 17 For More Information

27

Y

BANKING SERVICES FOR THE SEVENTIES
Dick Wagner is a resourceful professional
banker. He’s the head of a First team of
banking specialists who travel thousands of
miles each month. He gathers facts, exchanges
ideas, takes a firsthand look at correspondent
problems . . . correspondent needs.
The insight he gains supplies direction to
our large staff of creative specialists . . . experts
in every phase of banking procedure. These

men are devoted to the development of original
programs, unique services and efficient
problem-solving methods to benefit corre­
spondents and their customers.
When you want full service thinking, put
Dick Wagner on the spot. Tell him your prob­
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answers. Call (918) 560-5160.

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you deserve ItlOVC*** Think First!

The First National Bank & Trust Company of Tulsa
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION


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28
Federal Reserve Bank of St. Louis

N o rth w e ste rn B a n k e r

Banking Industry Speaks

A. P. STULTS
President

H P HE AMERICAN Bankers Association expects more than 11,000
“guest speakers” at its 98th annual
convention, October 7-11 in Dallas.
While there are nationally promi­
nent keynote speakers, Secretary of
Agriculture Earl L. Butz and News­
week Magazine’s Periscope Panel, for
example, the ABA wants discussion to
come from the convention attendees
themselves.
Thus, the unique, participatory
theme for the national convention,
“Speak Up,” is aimed at giving bankers
a piece of the convention floor to air
their problems, gripes, ideas and opin­
ions.
To assist the bankers and their
wives, special question cards will be
distributed in the registration kits, dur­
ing general sessions and at three
“Speak Up” stations on the main floor
of the convention center. The stations
will also be equipped with tape record­
ers to take questions and commentary
from the anticipated 11,000 bankers
and wives. While some of the questions
will be answered during the convention
on the floor, every question will be an­
Digitized
forb eFRASER
S e p te m
r, Ï 972
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

E. H. ADAMS
President-Elect

swered by mail by the appropriate
ABA division following the confer­
ence.
The participatory concept will get
an early test on Monday morning, Oc­
tober 8, when Newsweek’s Periscope
Panel of experts in finance, interna­
tional news, and national news will re­
spond to questions posed by the audi­
ence of bankers.
Panel moderator Dwight Martin,
senior editor of Newsweek, will over­
see the question-and-answer session.
Periscope Panel members will be Hugh
G. Aynesworth, Houston bureau chief;
Edward Klein, senior editor of Newsweek’s international section; Edward
Kosner, assistant managing editor; and
Lawrence S. Martz, senior editor of
the business and finance section.
In the 70s’
On Tuesday morning, the second
general session will look at “Our Soci­
ety in the Seventies.” Bruce MacLaury,
president of the Minneapolis Federal
Reserve Bank, will address the con­
vention on economic realities. Jim
Hayes, president of the American

in Dallas

E. L. BUTZ
Speaker

Management Association, will discuss
changing lifestyles as a management
challenge and Secretary of Agriculture
Butz will present an outlook for rural
America.
Following the Tuesday session will
be a special fiesta in the Activity Cen­
ter. Members may also choose their
meals from the international restau­
rants located in the Activity Center
and the Exhibit Hall. They can select
a German bierstube, Texas barbeque
ranch, Italian villa, French New Or­
leans restaurant, or Japanese tea
garden.
After lunch, members may attend
program mini-sessions which will focus
on trends in customer services, bank
investment outlook, retail credit inno­
vations and projection, economic
round table, and regulatory overview.
The Tuesday afternoon general session
and mini-sessions are new features of
ABA convention program planning.
On Wednesday morning, new offi­
cers will be installed in the closing gen­
eral session of the convention.
The Activity Center, which is open
to all convention registrants, is located
29

98th ABA A nnual Convention C alendar
Saturday, October 7
A.M.
7:00
8:00
10:00

12:00
P.M.
6:00
6:30
9:30
9:45

Information Centers open
Begin shuttle bus service
Grand opening, registration,
Activity Center, Exhibit Hall,
Ladies Hospitality Centers
Educational theater open
First show, dinner theaters
First show, musical theater
Second show, musical theater
Second show, dinner theater
Sunday, October 8

6:00
6:30
9:30
9:45

Monday, October 9
A.M.
7:00
7:30

8:00
8:30
9:00
11:30
P.M.
A.M.
6:00
7:00 Information Centers open
6:30
7:30 Begin shuttle bus service
9:30
8:00 Second annual prayer breakfast 9:45
Registration open
Activity Center open
Ladies Hospitality Centers open A.M.
7:00
10:00 Exhibit Hall open
Educational Theater open
7:30
P.M.
1:00 Dallas Cowboys football game
8:00
3:30 Reception

in the East Hall of the Convention
Center. It is designed to be the hub of
continuing educational, entertainment,
meal and social functions as well as
special program events.
Continual Activity
Even before the general sessions be­
gin on Monday morning, convention­
eers may gather in the Activity Center
to meet friends and participate in the
multitude of program activities. Some­
thing will always be happening in the
Activity Center, from 7:30 a.m. to
5:00 p.m. each full day of the conven­
tion. A schedule of Activity Center
events, including educational films,
speakers, entertainment, and womens’
program sessions, will be posted in the
Convention Center.
The Activity Center includes the
registration center, an educational
theater seating 300, a Japanese tea
garden with eating and lounge facili­
ties, and a womens’ hospitality center.
Outside the Convention Center there
will be a wide range of things to do and
see in Dallas. Known as “The Time
of Your Life City,” Dallas — together
with New York, Chicago, San Francis­

30
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Federal Reserve Bank of St. Louis

First show, dinner theater
First show, musical theater
Second show, musical theater
Second show, dinner theater

8:30
9:00
11:30
P.M.
2:00

5:30
Begin shuttle bus service
6:00
Information Centers open
6:30
Breakfast, Activity Center
9:30
Registration open
9:45
Educational Theater open
Ladies Hospitality Centers open
A.M.
Opening general session
7:00
Exhibit Hall open
First show, dinner theaters
First show, musical theater
Second show, muscial theater
Second show, dinner theaters
♦
Tuesday, October 10
Begin shuttle bus service
Information centers open
Breakfast, Activity Center
Registration open
Educational Theater open

7:30
8:00
8:30
9:00
P.M.
2:30

3:00

Ladies Hospitality Centers open
Second general session
Exhibit Hall open
Third general session
Ladies program
Reception
First show, dinner theaters
First show, musical theater
Second show, musical theater
Second show, dinner theater
Wednesday, October 11
Begin shuttle bus service
Information centers open
Breakfast, Activity Center
Registration open
Educational Theater open
Ladies Hospitality C e n t e r s
open
Fourth general session
Closing, Information Center,
registration, Exhibit Hall, Ac­
tivity C e n t e r , Educational
Theater
Shuttle bus service ends

dinner as well as entertainment. “I Do,
I Do,” will be featured at the dinner
theater at the Marriott Hotel, and
“The Fantasticks” will be shown in the
Hilton Inn dinner theater. These two
dinner theaters offer a combined seat­
ing capacity of 1,240.
“Dames at Sea” will be presented
in the 1,700 seat Convention Center
Arena. Each theater will present two
shows nightly, and convention dele­
gates are entitled to tickets for either
of the dinner theaters plus the Conven­
Football Game
tion Center presentation as part of
Following a prayer breakfast on their convention registration.
Sunday at 8 a.m., conventioneers will
Shuttle buses will take theater-goers
have an opportunity to watch the pro between major convention hotels and
football world champion Dallas Cow­ theater sites. In addition, more than
boys play the Pittsburgh Steelers at the 600 taxis will be available on a 24Texas Stadium. A large block of re­ hour basis for all four days of the con­
served tickets will be available to regis­ vention.
trants.
For wives attending the 98th annual
Convention registrants may also convention, there will also be a unique
spend their evenings watching Broad- womens’ hospitality center, located in
way-type musicals cast and produced
the Activity Center of the East Hall,
in New York, as a part of their con­
featuring
entertainment, program ses­
vention programming. Three theaters,
sions,
educational
activities, manicures
each featuring a different musical play,
will be in operation from Saturday and comb-outs, palmistry and fortunethrough Tuesday. Two of the theaters telling, and a wide variety of social and
will be located in hotels and will offer educational programs. — End

co and New Orleans — is among the
top five cities in convention bookings.
On Sunday, October 8, the opening
reception will be held in the Great Hall
of the Apparel Mart from 3:30 to
5:30. The reception will feature an in­
ternational buffet. On Tuesday eve­
ning, October 10, a second reception
will bring delegates together in the
Courtyard of the Trade Mart, part of
the famous Dallas Market Center com­
plex.

N o rth w e ste rn B a n k e r

At the A B A Convention...

Jim Kemper
Chairman
Comm erce Bancshares, Inc.

B. M . Lamberson
Exec. Vice-President
Comm erce Bancshares, Inc.

P. V. M ille r
Chairman

Chuck Battey
President

Frank Boesche

Fred Coulson
Sr. Vice-President

Tom Cannon
Vice-President

Elmer Erisman
Vice-President

Sr. Vice-President

Meanwhile, back at the bank...

Ben Caldwell
Vice-President

Warren W iedenm ann
Vice-President

Ernie Harms
Vice-President

Jim Fowler
Asst. Vice-President

Bob Selby
Vice-President

Dick M u ir
Asst. Vice-President

Jerry W ard
Vice-President

Garry Karrer
Comm ercial Banking O ffice r

All on the job, a s your correspondents

Ä

S e p te m b e r, 1972
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

LC ommerce Bank

o f Kansas C ity

31

.
Dallas,
fiere we come.
Where else but Dallas would you find
Nelman-Marcus, the Dallas Cowboys, Six
Flags, Lover’s Lane, Frank Lloyd Wright’s
Dallas Theater Center, the Cotton Bowl,
Fair Park, and City National Bank during the
A.B.A. convention.
The men from the C ity-C rosby Kemper, Jr.,

Jerry Scott, John Kramer, Don Thomason,
Roy Thompson, Bud Cox, Charles Koester,
E. L. Burch, Jerry Crutsinger, George Sher­
man and Frank Meissner — look forward to
greeting their colleagues from over a
thousand correspondent banks the City
serves.

Sty National Bank
&Trust Com pany
KANSAS CITY, MISSOURI

a united missouri bank

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N o rth w e ste rn B a n k e r,

Dallas
City of Many
Attractions
—

THE, 72,000 seat Cotton Bowl has provided many thrilling afternoons and evenings for
football fans. It is the home stadium fo r the SMU Mustangs, members of the South­
west Conference. Bankers will have an opportunity to see the game between the Dal­
las Cowboys and Pittsburgh Steelers on Sunday, October 8.
he
more
than
10,000
bankers and their wives who will
converge on Dallas for the 98th
annual American Bankers Convention
will find many attractions besides the
convention activities scheduled for Oc­
tober 7-1L
On Sunday, conventioneers will
have the opportunity to watch the
world champion Dallas Cowboys play
the Pittsburgh Steelers at the Cotton

T

Bowl Stadium. Seats have been re­
served for this event.
Other visitor attractions include: Six
Flags Over Texas, a historical amuse­
ment center and family entertainment
wonderland; World of Animals, a 550acre drive-through game preserve and
wild life sanctuary with 1,500 ani­
mals and birds on display, and Seven
Seas amusement park, the largest in­
land marine park in the nation.
Shopping areas are numerous in

THE John Fitzgerald Kennedy Memorial, a four-walled open empty tom b is located on
a square block plaza in downtown Dallas about two blocks from the site where the
President was assassinated, November 22, 1963. The land was donated by Dallas
County and the memorial was built with privately donated funds. Designed by a friend
of the Kennedy family, New York architect Philip Johnson, the memorial is a 50 by 50
foot open-roofed, concrete-walled space enclosing an eight foot square black granite
block with the name “ John Fitzgerald Kennedy” engraved on it.
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Dallas. The Quadrangle, located only
a few blocks from downtown, is a
unique assemblage of over 30 specialty
shops, art and antique gallaries, and
gourmet restaurants clustered around
landscaped courtyards. Northpark Re­
gional Shopping Center, in northwest
Dallas, sprawls over 94 acres of land
and is open seven days a week for visi­
tors.
Art galleries feature everything from
<5ils to tapestries and murals. Meadows
Museum has a permanent collection
of Spanish paintings from the 15th
century to the present on display. Ex­
hibits of oils, watercolors and graphics
by American artists are featured at the
Adcock Gallery. The Integrated Art
Company has exhibits of samples and
slide presentations of Gobelin tapes­
tries, murals, mosaics, stained glass
and sculpture.
The Dallas Theater, one of many
theaters, presents a repertory of plays
for residents and visitors in its 456seat Kalita Humphrey Theater and 74seat Down Center Stage. The center
also incorporates a children’s and teen
theater and a graduate school of
drama.
Other attractions bankers and their
wives may visit include: the Biblical
Arts Center, location of America’s
largest, original religious painting of
the Miracle at Pentecost; the restored
John Neely Bryan Cabin, the first
house built in Dallas in November,
1841, and the Lion Country Safari, a
drive-through African wildlife preserve
featuring miles of jungle trail and freeroaming African animals such as ele­
phants, ostriches, zebras, white rhinos,
cheetahs, giraffes and antelopes.— End
33

PROGRESSIVE
LEADERSHIP

Ankonian Dynamo is only the most recent example of A nkony’s progres­
sive leadership in the breeding of beef cattle. Since its founding in 1937,
Ankony has been at the forefront in anticipating and responding to the
needs of a changing industry.
The people
beef cattle
when they
offered for
prehensive
dustry.

at Ankony have been ever attuned to developing trends in the
business, providing cattlemen w ith the seedstock they need
need it. And every Ankony bull, every Ankony female tha t’s
sale is backed by years of selection based on the most com­
program of performance testing known to the beef cattle in­

Whatever your program, registered or commercial, purebred or crossbred,
Ankony is ready w ith the genetic material you need to meet the demand
for efficiency and profit in the production of high quality beef.

Put it to Work in Your Herd !

ANKONY
GRAND JUNCTION, COLORADO 81501
303/243-9600
COUBRAN, COLORADO

BLOOMFIELD, IOWA

HIGHMORE, SOUTH DAKOTA

NURSERY, TEXAS

3 0 3 /4 8 7 -3 7 3 3

5 1 5 /6 6 4 -2 8 0 0

6 0 5 /9 4 3 -2 1 8 4

5 1 2 /5 7 3 -6 0 1 7


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Federal Reserve Bank of St. Louis

Circle No. 18 For More Information

N o rth w e ste rn Banker.

Beef Producers and
Farmers May Have
A Good Year

W ritten Especially for
The N o r t h w e s t e r n B a n k e r
B y THE HON. EARL L. BUTZ
S e c re ta ry
D e p a r tm e n t o f A g r ic u ltu r e
W a sh in g to n , D.C.

E ditor’s N o te : Because o f the im portant part played by
the U nited States D epartm ent o f A griculture in serving the
interests o f the general public and agriculture, the
N o r t h w e s t e r n B a n k e r has asked The H on. Earl L.
Butz, Secretary o f Agriculture, to com m ent on several
questions that have special significance to the cattle indus­
try at this tim e. Dr. B u tz is well kn ow n to thousands o f
bankers throughout the nation, especially in the M idw est
where he has spoken to num erous banker association con­
ventions w hen dean of Purdue U niversity’s College o f A g ­
riculture.
Dr. B u tz responded to the fo u r questions with the fo l­
lowing co m m e n ts:

V E R A L L , we anticipate a good year for beef p ro ­
ducers and for farm ers as a whole. A s the econom y
continues to strengthen and inflationary pressures
are relieved, agricultural producers can look forw ard to
closing the 25 p er cent gap that exists between farm in­
come and nonfarm income.

O

Q. What do you foresee in consumer demand for beef in
the next few months and why?
C onsum er dem and fo r m eat, especially beef, has been
very strong and we anticipate very little change during the
balance of 1972. Consum ers are willing and able to com ­
pete vigorously fo r the available m eat supply because in­
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com es are high and going higher, and beef is a preferred
food.
O f course, people w ith fixed incom es or those whose in­
com es have risen slowly find it difficult to buy as m uch
m eat as they would like in this highly com petitive m arket.
F ood Stam ps, fortunately, are helping the poor buy m ore
of the food they need.
In the com ing m onths the supply of beef will increase,
running m oderately ahead of last year. W ith considerably
m ore cattle on feed, the output of fed beef will be up. Cow
beef supplies this fall will probably be about the sam e as
a year earlier.
O n balance, with m ore beef on the way to the m arket
there will be less pressure against beef prices even though
consum er dem and will rem ain strong.

Q. What effect has the Food Stamp program had on beef
demand? Do you feel this will continue, increase, or
abate?
;
W e think the expanded Food Stamp program has
helped boost the dem and for beef, but we cannot quantify
the exact am ount. Food Stamp expenditures have jum ped
from $250 m illion in fiscal year 1969 to $1.9 billion d u r­
ing 1971-72. A nd one of the first item s purchased with

BEEF PRODUCERS . . .
(T u rn to page 113, please)
35

The 1072
x\tintati Tattle
Outlaak
A N o r th w e s te r n B a n k e r S u rveyel

SOLID increase in consum er dem and for beef dur­
ing 1972 brought a $40 fat cattle m arket earlier this
sum m er. Optim ism that the m arket will share in a
projected continued strong economy during the coming
m onths is tem pered by words of caution from some experi­
enced cattlem en in their responses to the N o r t h w e s t e r n
B a n k e r ’s “A nnual C attle O utlook Survey.”
A n estim ate of w hat is ahead in the cattle industry is
given by survey participants in the following reports:

A

GORDON A. SMITH
A g r ic u ltu r a l R e p r e s e n ta tiv e
T h e F irst N a tio n a l B a n k o f C hicago
C h ica g o , Illin o is
S 1972 heads into its later stages, it is becom ing ap­
p arent that this will be considered one of the m ost
exciting and tum ultuous periods in the history of the cattle
industry. W ith continued strong dem and and increasing
governm ent influence likely, there prom ises to be plenty
to talk about during the next few m onths. M ore people
here and abroad have the desire and the m eans to buy beef
than at any tim e in history. T his fact alone prom ises to
keep fat cattle prices near o r above the $ 3 4 /c w t m ark
throughout the rem ainder of 1972, in spite of an increase
in cattle on feed of as m uch as 14% over 1971. T he ac­

A

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tual increase in cattle m arketed will be considerably less
than that, however, as m uch of the increase in cattle on
feed is represented by lighter cattle in the feedlots.
D em and for feeder cattle will continue very strong,
buoyed by high 1972 profits and an influx of investor dol­
lars. Fifty dollar steer calves and $42 yearlings m ay be
hard to come by through the rem ainder of 1972. These
record high feeder prices will m ake cost m anagem ent all
the m ore im portant in the next six m onths. Profits will be
pared from their early 1972 levels and losses will occur
unless there is an upw ard swing in the fat cattle m arket by
the first of the year. A nother large feed grain crop should
help m ake this task easier to face. R ain has been plentiful
in m ost of the U nited States and corn, soybean and sor­
ghum expectations are high. The great unknown in the fu­
ture is the role of the federal governm ent in the cattle in­
dustry. A lthough many w idespread apprehensions may be
unfounded, increased activity by the governm ent is inevita­
ble. T w o widely discussed moves, the rem oval of im port
restrictions on beef and the C alifornia IR S ruling disallow ­
ing a tax deduction for a cattle investor who had not pro p ­
erly secured his claim to the cash m ethod of accounting,
have probably been overly publicized to their short-range
effect on the cattle industry. The recent bans on the feed­
ing of the DBS horm one and rulings on pollution con­
trol for large feedlots will require m ore im m ediate atten­
tion, but neither developm ent should drastically alter the
cattle outlook in the near term .
N o rth w e st e rn Ba nke r

A m ore subtle governm ental influence has already had
a m ajor im pact on the cattle industry. Incom e redistribu­
tion plans, such as the F ood Stam p plan, are putting p u r­
chasing pow er in the hands of m ore people than ever be­
fore. Regardless of the outcom e of the N ovem ber elec­
tions, the inevitable increase in the scope of these p ro ­
grams, and the worldwide increase in dem and for beef, are
likely to contribute to an expanding and healthy beef in­
dustry.

M. G. FABRICIUS
P r e s id e n t
O sage F a rm e rs National Hank
O sa g e , Iowa
The annual review of the cattle industry presents new
problem s and the future will be the only sure answer to the
problem s. A s a b anker and small cattle feeder it will pre­
sent new challenges to m e in the year ahead.
I am sure th at we have developed feed lot capacity to
the point where the dem and for feeders will be very com ­
petitive. It looks like we have another large feed crop un­
der production, so relatively cheap feed will be an im petus
for filling feed lots. W e have had some of the largest profits
ever experienced in the industry which will bolster the de­
m and for feeders. T he only deterrent would be a lower
level of fat cattle prices in the near future.
In our particular area we have good prospects of a
large feed crop. C orn looks especially good at this date in
August. We have the total feed potential to feed our nor­
m al num ber of cattle.
The only disturbing elem ent of the industry is the cat­
tle on feed reports which indicate a build-up of cattle in
feed lots. I am sure this is not true in our area as the feed
lots are very current. I have some doubts about the accura­
cy of the U SD A reports of cattle on feed. T he total busi­
ness situation looks favorable, the dem and for beef is w on­
derful, and these factors should make a dem and for good
quality beef.
Starting prices for feeder cattle look extrem ely high.
W hen we talk of calf steer prices from 48£ to 50£ per
pound and yearlings from 44^ to 46y per pound, we
should be apprehensive. W e aren ’t allowing for m uch
dow n-turn in present fat cattle prices. We m ay have
reached a new plateau in cattle prices but this is not an es­
tablished fact. I w ould think that caution should be ap­
propriate, especially in buying heavier weight cattle which
will be m ost risky.

RALPH MAY
E x e c u tiv e V ice P r e sid e n t
First N ational Hank
V a le n tin e , N e b ra sk a
We have seen m ore factors affecting the beef prices of
a non-supply and dem and n ature during the past few
m onths than at any o ther tim e during the past two dec­
ades. However, these chaotic and unpredictable factors
have been over-shadow ed by the first real spurt in con­
sum er dem and during the past 20 years.
W ith ground-swelling econom y, consum ers have taken
the attitude of “ beef at alm ost any price.” T his same psy­
chology has also affected other consum er lines. T he record
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of the second quarter of 1972 is proof of the above con­
tention, beef supply up 7 % , prices up $4 per cwt.
During the m onth of July, political interference has
apparently slowed consum er beef prices. W ith some in­
crease of beef supply during the next 60 days, we can as­
sume some further m inor adjustm ent dow nw ard in beef
prices. However, by O ctober or N ovem ber 1, at the latest,
feed cattle prices can reasonably be expected to regain
their June levels.
T he rem oval of quota restrictions on im ports has had
absolutely no effect on beef prices, except as a vehicle for
m aking consum ers m ore price conscious. T he attem pt to
link the food stam p program with favorable beef prices is
pure “hog-w ash.”
The range feed supply in the N orthern Plains states is
the best ever. This is also true of the corn belt considering
the new crop on top of record carryover feed supplies. Just
like last year, only m ore so, there w on’t be nearly enough
cattle to go around. Because of range feed supply and tax
considerations, due to high prices, the N orthern Plains
states will sell fewer than norm al cattle. By the sam e to ­
ken, the corn belt states would buy m ore cattle than ever
if they were available. We believe that stocker-feeder
prices will be higher in N ovem ber than at any other time
during the fall m arketing season. She-stock prices will con­
tinue to be a bargain as they have been for several years.
Beef cattle folks should ignore the th reat of govern­
m ent controls as they are literally im possible to invoke in
an effective m anner. Any politician who attem pts to do< this
w ould create chaos within two weeks and would be literal­
ly com pelled to abandon the effort. There is no way to
control this perishable com m odity w ith the many millions
of people involved in production, pricing, and distribution,
and the 200 million daily consum ers.

PHILLIP R. MILLER
A ssistant V ice P re sid e n t-A g ric u ltu re
First S to c k Y a rd s Hank
Sou th St. J o s e p h , M issouri
H E R E are many factors th at have influenced our re­
cent cattle m arket. A m ong them is pressure from the
governm ent.
Politicians, anxious to gain recognition from the con­
sum er, have m ade a great deal of noise concerning prices
paid for groceries, particularly for m eat. T he governm ent
also has issued reports showing th at cattle on feed have in­
creased by 18% over a year ago. M any investors in the
commodities m arket have lost from $2 to $3. These
governm ent reports and actions have been influential.
A nother governm ent action that has increased the total
beef supply is that of lifting im port quotas. This has in­
creased the total m eat supply in our country by one-half
of one p er cent. Obviously, this presidential election year
will greatly test beef prices. It is our opinion th at beef
prices will probably be up and down, throughout the fall
staying w ithin a $2 floating range from the current level.
A fter the election confusion has cleared the air, we look
for the governm ent to play a less active role in holding
prices down. T he level of at least w hat we are confronted
with today should be the norm during the first q u arter of
1973.
R eplacem ent cattle being purchased today will have to

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37

be sold at close to the current slaughter price if the feeders
are to break even.
Prospects for crops are exceedingly good. Iow a expects
to have a total yield of over one billion bushels, o r 1 /5 of
the total corn supply this fall. R ange pasture conditions
are good throughout the M idwest. T herefore, we are an­
ticipating th at the feed lots in the Southwest, in the high
plains area, and in the N orthw est will be com peting with
those feeders in the cornbelt states.
We are expecting replacem ent cattle prices to be at least
as high this fall as they are now. M any replacem ent cattle
have been contracted to add to the problem s of securing
placem ents. T he governm ent is doing everything it can to
get tonnage on the m arket. O ur consum ers are eating beef
at a record-setting level. W e feel like the governm ent will
be successful during the short run. H ow ever, eventually
these m anipulations will not be able to keep up with the
demand.
The cattle feeder will continue to be in a high risk busi­
ness. Unless he dollar averages, or m arkets and purchases
cattle on a frequent program ed basis, he could find him self
in a very undesirable position.
T he com m odities have taken a bearish trend during the
past four weeks and will probably continue to think short
because of the above actions.

FRANK J. SIBERT
V ice P r e s id e n t
N o rth w e ste rn N ational B a n k
O m a h a , N e b ra sk a

abundant, the fat cattle m arket is good, and those w ith re­
placem ent cattle for sale this fall certainly have things go­
ing their way. E arly contracts on choice steer calves have
ranged from 48 to 50 and above. Y earling steers have
gone from 40 or better for O ctober delivery up to 42 and
above for im m ediate to near term delivery.
It would appear to me that in the next 60 to 120 days
the price of replacem ent cattle would come down a little,
but not much. R eplacem ent prices will be shaved slightly
because I think that as we move into the fall we will see
another dollar or two decline in the fat cattle m arket. R e­
placem ents sold during Septem ber and O ctober will de­
cline in sym pathy with the expected decline in fat cattle
prices.
One of the reasons the fat cattle m arket will decline is
because of the increased placem ents on feed in the spring.
We will see a bunching of fat cattle and an excess of sup­
ply com ing on to the m arket during Septem ber and O cto­
ber. This probably will create a larger supply of beef than
the m arket will absorb at current prices.
As we move into the new year, I foresee a slackening
of dem and for the product. Even though the supply will
probably drop off after the fall run of fat cattle, I think
th at due to econom ic conditions, a new surge on the p art
of the federal governm ent to control inflation, etc., the de­
m and will drop m ore than the supply. The result will be
that we can not expect the fat cattle m arket to get back
into the $38 to 40 range as we m ove into 1973.
There are a num ber of reasons why the fat cattle m ar­
ket has been as high as it has been during the 1971-72 pe­
riod. M ost of the reasons have centered on consum er de­
m and. People are being paid well and even though the per­
centage of unem ploym ent is higher than we’d like to see
it, we still have m ore people w orking than ever before.
Even those w ho do not w ork have buying pow er as a re ­
sult of the food stam p program and welfare.
Im ports have not had a decided effect on the supply
side because of the shortage of cattle throughout the world.
It all adds up to a good dem and for a good product. This
has created the high fat cattle m arket that we’ve seen during
the past m onths and will continue to result in a good m ar­
ket for fat cattle as we move into the w inter and spring of
1973.
I think, however, based on the above, that the dem and
will drop off and that we could expect fat cattle to sell
from the $33 to 36 range rather than the $37 to 40 range.
T his m eans that cattle feeders paying the current prices
for replacem ents and those w ho will be buying replace­
ments throughout the fall will have to use a sharp pencil
to m aintain the same profitable feeding operations as the
past season. Even though feed is going to be cheap, cattle
feeders will have difficulty m aking m uch money during the
coming year due to the cost of replacem ent cattle.

FRED FLEENER
H E cattle outlook for this fall is m ost difficult to p re­
dict. M any different factors m ake the old and tried p re­
diction tools obsolete. There are, nevertheless, some things
to think about when looking into the fall and w inter and
1973 w hich probably will affect the cattle picture. A s of
today, A ugust 8, here is the way it looks from O m aha.
Feed supplies in this area and throughout the entire
state of N ebraska and adjacent states are trem endous. The
com crop was never better, grass and hay supplies are

A g ric u ltu ra l R e p r e s e n ta tiv e
First N ational B a n k an d T ru st C o m p a n y
D ic k in so n , N orth D akota

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H E cattlem en in western N orth D akota have had a
good year and from all indications may expect another
good one. O u r pastures are still green w ith nearly double
our average rainfall. Dem and for all classes of cattle is
strong. Y earlings are selling at about the same prices

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N o rth w e ste rn B a n ke r

calves brought last year. Steer Calves are being talked of
at 50<£ with a
spread on heifers, 4 0 0 pound weights.
I expect the feeder prices to rem ain strong for the next
four m onths. T here is a great dem and for beef. If the econ­
om y continues to m ove ahead, I can see no great drop in
fat cattle prices. The restriction on the use of DES by the
federal governm ent will certainly increase the cost of p ro ­
duction. T he cost will be passed on to the consum er in
higher beef prices. G enerally speaking, the livestock picture
in the area is good; top range conditions, a good feed sup­
ply and a strong m arket.

LARRY L. MCDONALD
Vice P r e s id e n t
C entral A gF inance C o r p o r a tio n
C en tral National B an k
C h icago , Illinois
E V E R A L current developm ents could have an im pact
on beef profits in the m onths ahead:
T he ban of DES (diethylstilbestrol) m ay increase the
cost of beef production after Jan u ary 1. Even though
farm ers will be allowed to continue use of stilbestrol im ­
plants, which are as effective as oral feeding, they do re­
quire m ore labor. M anufacturers have been ordered to stop
m aking DES feed supplem ents im m ediately, and cattle­
men have been instructed to stop using existing stocks by
January 1.
T he only way this decision can be reversed is if C on­
gress takes action to soften the 1958 Delaney A nti-C ancer
A m endm ent, which says cancer-causing substances can’t
be added to food, even if the quantity of residue is so small
that scientists question w hether it has any effect at all.
Prospects for getting this Delaney clause modified this year
do not appear good, according to W ashington sources.
T he cam paign issue of food costs and hearings on food
costs in recent weeks m ay have a positive effect fo r farm ­
ers. F o r the first tim e, the U.S. D epartm ent of A griculture
has m ade a concerted effort to point out to consum ers the
high cost farm ers have in producing quality food. T he u p ­
shot of this year’s activity in defending the farm er is that
the U.S. D epartm ent of Agriculture is now considering an
appropriation of funds fo r an inform ation cam paign aimed
at explaining the farm er’s position.
I t’s possible th at this y ear’s talk about the high cost of
food will have m ade the consum er aw are that if she wants
quality food, she is going to have to pay a higher price for
it in the years ahead. W ith the econom y m oving along at
a healthy pace, consum er dem and will continue strong in
spite of protests.
A noth er significant developm ent which could have m a­
jor im pact on beef prices both for the short term and the
near-long term is a U. S. statistical report Decem ber 15
that should pinpoint cattle inventory.
Census B ureau figures have indicated that there aren’t
as m any cattle in the U nited States as U. S. D epartm ent
of A griculture figures have been saying. This inconsistency
should be resolved on D ecem ber 15. Some highly reliable
sources believe th at the effect will be a lowering of cow
herd num bers, which could have bullish im plication for
beef prices for m any m onths.
C om petition for feeder calves continues to be strong,
resulting from dem and by m idw estem farm er-feeders and
the increasing dem and from com m ercial feedlots. T his sit­
uation is beginning to cause shifting of m ore m arginal crop

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land into cow-calf production in the central states. This
is a n atural econom ic m ovem ent to provide the feeders
needed to utilize m idwestern feed and grain production.
Overall, the fed beef outlook looks optim istic for the
m onths ahead with some adjustm ents in the m arket due
to tem porary build-ups in supply. G enerally, prices for
feeders will probably rem ain strong throughout the fall,
regardless of any fed cattle adjustm ents.
T he im portance of total m anagem ent by your bank cus­
tom ers, w hether their operations are large or small, can­
not be over-em phasized for a profitable beef operation in
the coming several years.

GORDON SEARS
E x e c u tiv e Vice P r e s id e n t
Citizens FHrst N ational B ank
P r in c e to n , Illinois
UE to extremely heavy rains, our pastures have been
exceptionally good. It appears th at the total feed sup­
ply will be as good or better than a years ago with indica­
tions that our corn will m ature later this year and possibly
be w etter at harvest time. We should have a strong dem and
for feeder cattle for the balance of the year. It appears that
calves are costing mostly 40<£ to 47^ a pound depending
on quality, weight and sex. Southern heifers are coming
in at around 40y and good W estern steer calves at 47<£.
Heavy yearlings are costing up to $40 per hundred weight.
Indications are that the feeder cattle m arket m ay have
a little weakness during the balance of this year. We would
anticipate some weakness in the feeder m arket as feeders
will be too high in relation to future cattle prices a year
from now. I can see no basis for change in the consum er
dem and for beef in the next several m onths. T he consum er
has plenty of money and likes beef. If anything, the price
should move up after school starts in Septem ber. As fam ­
ilies norm ally eat m ore regularly after vacation season. We
w ould have to assum e that food stam ps, welfare and in­
crease in Social Security all contribute to the increase in
the dem and for beef. A ctually beef is cheap com pared to
the price of beef 20 to 40 years ago. A pparently the con­
sum er likes beef so well that he would like the price to be
lower so that he could consum e even more.
Based on the present income, I am very critical of
everyone taking the attitude that beef is high. I contend
that beef is a good buy and that A m erican consum ers

D

39

should be inform ed th at they have the privilege of eating
so m any pounds p er capita.
I would like to re-em phasize th at 1 think th at food in­
dustries, from the farm er to the retailer, are doing a poor
job of inform ing the consum er of how fortunate he is that
A m erican food is low cost com pared to other consum er
goods.
We do find a few cases of substantial advertising to try
to tell the public that food is not expensive. However, the
entire industry should cooperate in m ore advertising in the
consum er orientated news m edia, pointing out th at A m eri­
can consum ers are fortunate to have high quality and a
large supply of food at reasonable prices.

MERVIN AEGERTER
V ice P r e s id e n t
First N ational B a n k o f O m a h a
O m a h a , N e b ra sk a
F T E R seeing a $40 fed cattle m arket in early July,
and 60£ calves at auction from T exas to the D a­
kotas, A ugust finds w holesale beef prices have dipped as
m uch as $4.50 to $5, with the choice steers in O m aha a
good $2.50 low er than they were three weeks earlier.
T he last three weeks in July found a lower cattle m arket
week by week. T his followed an upw ard trend since early
M ay. D uring this tim e beef prices, a subject which norm al­
ly attracts no m ore news coverage than does a L ib rarians’
C onvention, have been com peting with plane hijackers and
political conventions for the top stories on the evening
news. T he em phasis was naturally on higher cost to con­
sumers. Beef prices will probably still be in the news, but
with packers trying to get live prices in line with a m uch
lower wholesale beef price, consum ers prices should even­
tually lessen.
During both 1969 and 1970, the fed cattle m arket
showed strong prices during the first half of the year and
then turned w eak tow ard the second six m onths. In both
years, fat cattle prices dropped from $5 to $7 p er hun dred­
weight.
Because of the trem endous consum er dem and, there
aren’t many people who will buy the idea th at this could
happen again this fall. O ne thing is for sure, cattle prices
rarely rem ain static for a very long period of tim e. W hen
they hit the $40 top a few weeks ago, they probably were

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over-reacting, and now, as prices are coming down, there
is always the chance that they will over-react downward.
O u r m em ories are short, but we had choice steers in
O m aha in M ay of this p ast year in the $34 bracket. It is
apparent th at supplies are beginning to catch up to the
red-hot m eat dem and. W ith the 14% increase in cattle on
feed as reported on July 1 in 23 states com pared to a year
ago, w ith seasonal hog num bers increasing, with lifting of
m eat im port quotas, and with the announcem ent that the
use of DES as a feed additive will be discontinued by Jan ­
uary 1, if not sooner, there are plenty of reasons for the
rancher and feeder, to see his situation in selling and buy­
ing cautiously.
Prospects for an excellent crop are in the m aking, and
m oisture conditions over m ost of the territory now appear
to be ample.
E astern N ebraska is in excellent shape, as far as corn
and sorghum crops are concerned. Y ields are expected to
be up for corn as m uch as 9 % , and the grain sorghum
crops, also a little behind norm al yields, are projected at
5% higher than in recent years.
In Southwest Iowa, the corn crop appears about average
for m aturity, with yield prospects excellent.
In K ansas, also, the co m crop is a little behind, but
yields are expected to be up 6 % .
In C olorado, both yields and m aturity are expected to
average close to norm al.
Only in South D akota is there a two-way deal. The corn
crop is later than usual, and this presents a hazard of early
frost. M oisture conditions are reported excellent. In the
N ebraska Sandhills, the haying season has been slowed be­
cause of frequent rains, but the hay crop should be a
bum per one.
W ith these conditions, it’s hard to figure what degree the
replacem ent m arket will follow the fat m arket. T he first
of A ugust finds choice 440% steer calves in the Sandhills
still bringing 50£ or better, with some weighing right at
5 0 0 # at practically the same price. T he 7 6 0 # steers on
the same m arket were quoted at $41.50, with some twoyear-olds at around $38.50 per hundredw eight. Those fan­
cy 5 0 0 # fall heifer calves were still bringing in 4 1 G with
the 6 2 5 # yearling heifers in the 38% to 39yi bracket.
W hile prices have slipped some, the dem and is still excel­
lent. A year ago, those choice 1 0 0 # to 7 5 0 # yearling
steers were moving readily at 35^, with the 600-pounders
$2 to $3 higher, and 4 7 5 # steer calves were quoted at 40y
and their heifer mates, weighing 4 2 5 # , at 2>6t.
U nder-estim ation of the dem and for beef in recent
m onths has caused many price forecasts to be too low. T he
higher-than-expected prices have been a pleasant surprise,
and hopefully, they will continue.
F ed cattle m arketings for O ctober-D ecem ber, although
less than July-Septem ber m arketings, still will no doubt
prove higher than a year earlier.
W ith projected fed cattle sales for the July, A ugust, and
Septem ber quarter at a 9% increase over a year ago, we
may need some healthy appetites, for the m arket to show
any real strength until later this fall.
F eeder cattle prices are providing a strong incentive for
increasing breeding herds. The 4% increase in beef cow
num bers July 1 is an example.
G rain prices favorable to the feeder, although expected
to be som ewhat above a year ago, will be the factor giving
strength to the replacem ent m arket.
A nybody using a crystal ball concerning the future
N o rth w e stern Banke r

prices at this tim e will have to resort to a m ixture of psy­
chological theories, fundam ental facts, and relationships
betw een volum e, price, and dem and. Given the present
costs of replacem ent feeders, there m ay be excellent op­
portunities to purchase O ctober and D ecem ber futures
over the next several m onths, at values substantially below
the projected costs of slaughter cattle fed for these m ar­
kets.
T he feeder, thus, m ay face the option of choosing the
cheaper of the two— futures o r cattle.

ERNEST L. HARMS
Vice P r e s id e n t
C om m erce Bank
K a n sa s City, M issouri
T this writing, the outlook for cattle feed production
is very good. Cool w eather m ay delay ensiling. H ow ­
ever, recent m oisture has been very beneficial for row
crops, pastures and ranges. The F lint Hill area in eastern
K ansas has excellent grass conditions.
C urrently, com m ercial feedlots are paying 430 and 41 £
for 5 0 0 # and 7 0 0 # replacem ent steers, respectively.
R eplacem ent heifers weighing 5 0 0 # and 6 0 0 # are cost­
ing 38^ and 370, respectively. R eplacem ent cattle will re ­
m ain at about the sam e price levels during the next 120
days.
C attle owners have realized good profits from finished
cattle fed in com m ercial feedlots in 1971 and 1972. They
will probably continue to feed cattle, thereby delaying a
capital gains tax situation. So replacem ent feeders will be
in good dem and for the rem ainder of 1972.
Slaughter m arket prices will be in the $34-$36 area for
choice steers during the third q u arter of 1972. But there
is a possibility of fu rther w eakness in the O ctober-D ecem ber quarter because cattle m arketings will continue m od­
erately larger th an a year ago during this time. A n increase
of 5% over last year appears likely, but choice steers
should not go below $33.
A nnual U nited States beef consum ption has risen from
5 6 # per person in 1951 to around 1 1 6 # per person in
1972. Consum ption will continue to rise because of an af­
fluent society not only in the United States but also in other
foreign countries.
F o o d stam ps have been an im portant factor in the in­
creased consum er beef consum ption. A ccording to Secre­
tary of A griculture E arl Butz, the free food stam ps budget
fund has increased from $578 m illion in 1970 to over $2
billion in 1972. T he num ber of participants in this p ro ­
gram has increased from 6.1 million in 1970 to 11.8 m il­
lion in 1972.
Beef im ports are likely to continue above last y e a rs
level. However, oth er foreign countries have a strong de­
m and for beef. T herefore, exporting countries (A ustralia
the m ajor exporter) have a choice of m arkets. T he United
States governm ent’s decision to lift im port restrictions on
beef will have little or no effect on o u r cattle prices.
T here has been a lot of publicity regarding the Food
and D rug A dm inistration (FD A ) o rd er to end the use of
diethylstilbestrol (D ES), both liquid and dry, as a grow th
stim ulant in anim al feeds by January 1, 1973. 1 do not
agree w ith the statem ents m ade that feed costs p er pound
of gain will be increased by 50 because of liquid and dry
DES banning.
Im plants of DES m ay continue to be used pending the

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results of USDA tests that should be com pleted in the next
several weeks. FD A has not been able to detect residues
when im plants w ere used as the sole source of DES.
Should im plants also be banned at a future time, then the
feed cost per pound of gain may increase another two
cents.
The secretary of agriculture could becom e more of a
key position for all facets of agriculture in the years ahead.
However, the cattle outlook should be favorable for the re­
m ainder of 1972, irrespective of the fact that this is a pres­
idential election year.

ROBERT S. KENNEDY
F a d d is -K e n n e d y C attle C o m p a n y
S h e rid a n , W/y o m in g
T T E R E is my opinion on the questions you have asked.
Feed supply and pasture in this area is norm al or av­
erage. Prices paid for calves are in the 440 to 500 range.
Y earling steers are 410 to 440 and 2-year-old steers are
in the vicinity of 360. I expect these prices to hold steady
even during the m arketing period.
I also believe that fat cattle prices will stay within the
lim its of fluctuation they are now showing.
C onsum er dem and for beef should stay strong and con­
sum er incomes should continue to show increases. I p er­
sonally doubt that the Food Stam p program has m uch ef­
fect on the overall beef dem and.
Beef im ports, at present, are having little effect in our
supply or prices. G overnm ent controls are having very lit­
tle effect on the beef m arket. Supply and dem and seem to
be the controlling factors.
Regardless of which candidate is elected to be president,
I believe Congress is not going to be rushed into changing
the entire system. I look for little change in the operation
of the livestock industry.

G. L. HADLEY
C a m b r id g e , Illinois

A

G A IN , I am happy to rep o rt th at crop conditions in
w estern Illinois are good.
C orn is m aking good progress in spite of extrem ely wet
w eather. The crop will be heavy but the m aturity, due to
41

extrem ely dry w eather and poor germ ination at planting
time, will be uneven and m ay delay harvest.
Only a few calves are moving into the area from the
southeast. L ocal cattle are not moving, as pasture and feed
supply is abundant. H eifer calves in lim ited num bers
weighing 4 - 4 5 0 # costing $41.50 to $42.50 laid down at
lots have com e in from Kentucky. Steer calves are $4 to
$6 higher. I can see no bargains in either calves or year­
lings this fall.
The dem and for beef appears to be trem endous. Today,
there are m ore people em ployed and their take hom e pay
is larger than ever before.
T he F ood Stam p program together w ith o ther federal
food assistance program s has only recently been recog­
nized as an im portant factor in dem and for m eat. In April
of this year, 11.5 m illion people, roughly 5% of our pop­
ulation, were participating in the F o o d Stam p program .
This, in effect, has presented the m eat counters of the n a­
tion with 11.5 m illion new custom ers who are now com ­
peting for the available supply. I believe this program will
be expanded m oderately but it has already increased the
dem and for meat.
It may be a num ber of years before the calf crop can in­
crease to the point w here supplies of beef w ould become
burdensom e. T h e cattle industry has been accused of many
things lately, all of them unjustified. If we are guilty of
anything, it could be th at we failed to estim ate the dem and
for the product.
The election and political m oves by candidates to make
the present adm inistration and the P resident’s economic
policy look bad have certainly had adverse effects on the
industry. It appears th at the “now ” generation has expand­
ed to include m any of those m aking decisions in high
places. T he pressure and clam or for price controls on
m eat is certainly “now ” m otivated and gives no thought
to w hat will happen in the future.
Price in the m eat industry has never been the problem.
It is the result of the problem . Supply is the problem and
always will be in a free m arket. Those asking for price
controls w ould be well advised to ask instead for m easures
th at would increase production and not continually th reat­
en the industry with moves th at discourage expansion.
T he cattle industry can expand w ith m uch m ore confi­
dence under an adm inistration that realizes the necessity
of m aintaining a strong dom estic livestock econom y, than
in one w hich is willing to sacrifice adequate grow th for

42
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cheap food for the new term. T he present adm inistration
has indicated tim e and again, that it fully realizes the basic
econom ic fact that any product that m ust be continually
sold at a loss will disappear from the m arket.
I, personally, am well pleased with the things we hear
com ing out of W ashington the past few years and I believe
that agriculture and the livestock industry would benefit
from m ore years of the same.
Several unfortunate developm ents have occurred recent­
ly th at have m ade cattle people unhappy. The ban on DES
is a serious blow to the industry. However, cattlem en
should exert their influence in support of congressm an,
W illiam Scherle of Iowa, in his efforts to am end the D e­
laney clause of the Food, D rug & Cosm etic A ct to allow
the residue tolerance at a level found by research not to
produce harm ful effects.
Lifting im port restrictions has been unpopular but as
of this date seems to have had little effect on the fed cattle
m arket. W orld dem and for m eat brought about by rising
levels of nutrition and higher incomes in m any countries
probably will absorb m ost of the available beef from ex­
porting countries. T he hide export restrictions w ere un­
fortunate as well, but have been quickly dealt w ith and
elim inated through an am endm ent to the E xport A dm inis­
tration A ct when it cam e up for extension.
All things considered, the cattle business has not fared
too badly. W e still have a free m arket. We are not subject
to restrictions or controls in production and the industry
as we know it today, still relies on supply and dem and to
establish price. W e are beholden to no one for subsidies
or special privilege.
I have a firm belief that so long as the industry is al­
lowed to continue under these conditions w ithout outside
interference, it will continue to expand at a rate th at will
supply the m eat the public wants and needs.

DAVID R. JOHNSON
S e n io r V ice P r e s id e n t
T h e O m a h a N ational B a n k
O m a h a , N e b ra sk a

A

C O M B IN A T IO N of an excellent crop and excellent
profits in the past 18 m onths is causing some ex­
treme pressures currently and will continue to do so well
into the fall and w inter of 1972.
In near recent history, one would have to look hard
to find a time when as m any cattle, norm ally sold in the
fall, have already been contracted, the contract prices
ranging from reasonable to very expensive. We definitely
feel there will be additional cattle available for slaughter
in the fall and w inter of 1972-73, and this will have a
dam pening effect on the dem and for beef.
Also on the gloomy side are the political actions
recently taken, and some yet to be taken, to control the
prices of food. It is well within reason to believe fat cattle
will be selling in the $31 -$33 m arket in the not too distant
future. This will cause some real problem s on the profit
side and any num ber of early contracted cattle could be
turned down, which could result in some m inor chaos in
the replacem ent m arket.
On the bright side, the dem and for beef is excellent

CATTLE OUTLOOK SURVEY . . .
( Turn to page 58, please)
N o rth w e st ern Banke r

Veteran Livestock Banker
Gives Advice to Young Feeders
B y E. V. SLIFE
P r e sid e n t
F a rm e rs S ta te B an k
H aw arden , la.

E.

V.

SUFE

I

H A V E been asked to write about
my experience as a banker with
cattle feeders.
It was my good fortune to be asso­
ciated with W alter Scott, a native of
H aw arden, la ., and a livestock dealer
for m ore than 80 years. M r. Scott was
president of our bank from its opening
in 1917 until his death at age 94 in
1963.
H is father, who farm ed and was a
successful cattle operator, gave his son,
W alter, at age 12, a roll of currency
and sent him out to buy cattle. F rom
that tim e on until his death, W alter
was associated with and dealing in the
cattle business. A t one tim e he was en­
gaged in the m eat m arket business,
buying his cattle and processing them
for sale at retail.
In this day and age we know nothing
about hard w ork and long hours such
as he knew in those days. H e opened
the butcher shop at 5 a.m. and closed
at 9 p.m . six days every week, for sev­
eral years, o r 96 hours a week com ­
pared w ith the 40 to 46 hours a week
now com m on practice in m ost business
places.
In the years 1880 - 1900 M r. Scott
bought thousands of head of cattle in
small and large lots, as there were no
trucks and all cattle, except for the lo­
cal slaughter for m eat m arket, went by
rail, m ostly to Chicago. He traveled
widely through D akota w ith a covered
wagon and a crew of men, buying catS e p tfor
e m FRASER
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tie and driving them to H aw arden to
be added to those he purchased in the
local area. He corralled them.
T he cattle would be sorted and sold
from the corral to local buyers, and
m any of them were shipped by rail to
C hicago after they were sorted and fed
to m arket weights.
I rem em ber hearing him tell m any
times about the time in the 1890s when
he had a whole train load of cattle on
the Chicago m arket— this train carried
only his cattle. W hen they arrived in
Chicago on M onday, 41,000 head of
cattle were on the m arket and the
buyers just disappeared.
He always shipped to Swanson, G il­
m ore & C astenholtz and was well ac­
quainted with the firm. M r. Swanson
was a young m an as was M r. A rm our
of A rm o u r and Com pany. Mr. Swan­
son, being a personal friend of Mr. A r­
m our, finally persuaded him to m ake
a bid on M r. Scott’s cattle. He looked
them over and m ade a bid of $4 per
hundred straight across the board.
M r. Scott and M r. Swanson talked
the offer over and thought the cattle
should be sorted as to size and quality.
M r. A rm our agreed. A fter spending
several hours sorting the cattle into
various pens, M r. A rm our then bid
them on each pen, some of them bring­
ing m ore than $4 and some less.

$5 More Per Train
W hen they w ere all weighed and fig­
ured M r. Scott got about $5 m ore for
a train load of cattle after they were
sorted than he would have received
had he accepted the first bid of $4
straight. H e told of being kidded every
tim e he went to Chicago after that

about beating A rm our out of a $5 bill
on a train load of cattle.
Y ou may w onder why I am relating
this story to a m odern-day group of
cattle feeders. F o r two reasons: First,
to show you that the cattle m arket has
always had its ups and downs. Supply
and dem and has always been a factor
in the price and I think it always will.
Second, to let you know th at I learned
w hat little I know about the cattle busi­
ness from a very wise and com petent
m an with m any m ore years of experi­
ence in the cattle business than the av­
erage cattle man. He was still handling
a few cattle at age 90.
One thing 1 have learned is that
there is no such thing as a cattle m ar­
ket expert. Even the best inform ed op­
erators are unable to out-guess the
m arket. Supply and dem and is the con­
trolling factor. Even though the central
public m arket is not the factor it once
was, in my opinion it still is a m ajor
factor in setting the price on fat cattle.
I personally hope it will never be
forced out of business.

Advice to Young Feeders
My advice to the young feeders just
getting the feel of cattle feeding opera­
tions is to follow your original plan
when you purchase feeders.
If you purchase cattle to be m ar­
keted in six months, then when that
period arrives, m arket them within two
or three weeks of that time. Trying to
wait out the m arket for a better price
usually does not pay. All the time you
are holding for a better m arket the cost
of gain increases, and your cattle are

LIVESTOCK BANKER 7
( Turn to page 110, please)

43

A PORTION of Ankony's herd of commercial Hereford cows— used principally fo r pro­
geny testing of its Angus herd bull prospects— grazing in Parker Basin on the north
slope of Colorado’s Grand Mesa.

A n kon y's P erform an ce E valu ation
Breeds High Q u a lity L ivestock

T

H R O U G H an elaborate program
of perform ance evaluation m easur­
ing the capabilities of its herds in the
pasture, feedlot and packinghouse, A n­
kony C orporation continues its growth
as an im portant leader of the beef cattle
industry in the wide area served by the

N o rth w ester n Ban k er .

Based on the years of experience and
sound knowledge of its staff from top
m anagem ent throughout widely dis­
persed personnel, Ankony has earned a
reputation for providing cattle to all
segments of the industry that are syn­
onymous with high quality investment
and loan worthiness.

The Ankony Corporation headquar­
ters at G rand Junction, Colo., on the
western slope of the C olorado Rockies.
T o m eet varying conditions and keep
attuned to the needs of cattlem en, A n­
kony m aintains additional cattle opera­
tions on ranches near Highmore, S. D.;
Bloomfield, la .; Collbran, Colo.; N urs­
ery, Tex., and in Idaho.
In its quest for more efficient and
profitable production of high quality
beef A nkony has, in more recent years,
included Herefords and the exotic
breeds, although it was founded 35
years ago as a breeder of registered
Angus cattle. This move to incorporate
other breeds typifies the com pany’s
move to leadership in perform ance se­
lection.
Through its research and develop­
ment division, A nkony has utilized the
com puter extensively in the m am m oth
undertaking of developing, m aintaining
and putting to m anagem ent use the
thousands of records needed to m ain­
tain the high level of perform ance and
quality it has achieved through its 35
years.
For exam ple, some 24.000 brood
cows are evaluated for fertility, ease of
calving and m othering ability. The
beef producer considers all these fac-

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44
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Federal Reserve Bank of St. Louis

N o rth w e stern Banker

.

tors to be of econom ic im portance.
F u rth er evaluation is m ade of progeny
for rate and com position of gain em ­
ploying feedlot tests, A nkony’s unique
scoring system and carcass evaluation
for that purpose. Culling decisions,
breeding program s and prices are all
based on perform ance recorded under
this system.
The breeding status report indicates
on any given day all fem ales eligible
for breeding, those already bred and
w hether exam ined safe in calf. In ad­
dition, the com puter reports calvings
expected during the next five 30-day
periods.
Perform ance inform ation fo r cattle
at any of the A nkony ranches is p ro ­
vided by the com puter’s inventory list­
ing, which assists m anagers with de­
cisions on culling and castration. The
exceptions report can provide these
m anagers with inform ation like overdue calvings or weanings, culling or
castrations not perform ed or reported,
and vaccinations not adm inistered.
A unique system currently under de­
velopm ent will enable an A nkony field
representative calling on a prospective
custom er to use a portable com puter
term inal to retrieve a listing of all bulls
available for sale that fall within spec­
ified limits of pedigree, perform ance
and price.
Beyond the applications pertaining
to m aintenance, analysis and utilization
of records, the com puter perform s the
highly im portant chores of preparation
of budgets, financial planning and con­
trol.
A nkony C orporation is a subsidiary
of Equity Funding C orporation of
A m erica, a financial services institution
headquartered in Los Angeles and
listed on the New York Stock E x ­
change. Its m anagem ent is a blend of
business and beef industry acumen.
T hom as B. Neff, president since 1970,
holds an MBA from Colum bia U ni­
versity and has had extensive top level
and financial executive experience with
such noted firms as R aytheon, Hughes
A ircraft, IT T and Rexall.
Senior vice president for operations
is Dr. R obert Long, who is widely
known in the beef industry as a pio­
neer in perform ance testing and carcass
evaluation procedures. Dr. Long served
11 years as chairm an of the Anim al
Science Division at the University of
G eorgia before joining A nkony in
1968.
A m an with 25 years experience in
ranch and herd m anagem ent who has


S e p t e m b e r, 1972
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Federal Reserve Bank of St. Louis

becom e a recognized authority on beef
cattle, H arold A rendt, is vice president
and general m anager of the Angus Di­
vision. Mr. A rendt m aintains his head­
quarters on the Ankony ranch near
H ighm ore, S. D., and supervises also
the firm’s ranches at Bloomfield, Coilbran and Nursery.
Perform ance selection is the key to
continued success in the beef cattle in­
dustry, according to A nkony m anage­
ment. With a keen sense of concern for
the prosperity of cattlem en, the com ­
pany rem ains dedicated to the produc­
tion and m arketing of beef cattle seed-

stock bred to perform in the areas of
real economic perform ance.

POSITION AVAILABLE

Central Iowa bank needs man­
ager for aggressive general in­
surance department. Must have
insurance
background,
but
need not have banking exper­
ience. Give complete resume in
first letter. Box ICB. in care of
the NORTHWESTERN BANKER,
305 - 15th St., Des Moines,
Icwa 50309.

DOANE
SERVICES
BUILD BUSINESS FOR
AGRICULTURAL BANKERS
If you serve the agricultural market, Doane has a number
of services designed for you or your farm customer. Some
of these build business for you directly; others will help your
farm borrower to operate more profitably, making him a
more valuable and dependable customer of your bank.
Doane services include:

REAL ESTATE APPRAISAL — accurate evaluation of estates,
properties to be sold, or insured.

FARM MANAGEMENT — professional handling of your trust
department farms by experienced specialists.
COMPUTERIZED FARM PLANNING — electronic technology
to supplement human skills of your customers who are
expanding.
FARMING FOR PROFIT — monthly farm and ranch news­
letter, with your bank's heading prominently displayed,
mailed to your farmer customers.
DOANE’S AGRICULTURAL REPORT — weekly information
on price outlook, livestock production, Washington develop­
ments, other farming information.
BANK CONSULTING SERVICES — Analysis of loans and
applicants, based on potential of farm business, using
budgeting, cash flow and computer programs.
Write today for detailed information on above items, plus
FREE booklet, “ This is Doane,” a behind-the-scenes look at
Doane’s resources, specialized talents, procedures.

DOANE A G R I C U L T U R A L S E R V I C E , I N C.
8900 Manchester Road • St. Louis, Missouri 63144

Circle No. 19 For More Information

45

Brown Sw iss H erd Is Good In vestm e n t

T

are factual reasons for owning regis­
tered Brow n Swiss from the viewpoints
of both the dairym an and the beef
man. Because the “Big Brown Cow ”
is a well established dairy breed, the
dairy view will be explored first.

H E NEW IN V ESTO R interested
in dairying will find m any profita­
ble reasons to build a herd of regis­
tered Brow n Swiss. The same can be
said for the m an who is interested p ri­
m arily in a beef venture. Listed below

This Brown S w iss cow , the Incom parable Ive tta,
is the W orld's A ll-B reed Lifetim e Butterfat Pro­
ducer.

Registered Brown Swiss
HIGH PROFITABLE PRODUCTION
Brown Swiss produce a large volume o f an ideal 4 % market milk high
in protein — tasty and nutritious.

LONG PRODUCTIVE LIVES
Brown Swiss have a long milking lifetim e requiring fewer herd replace­
ments — more breeding stock to sell.

QUIET, DOCILE TEMPERAMENT
Brown Swiss are ideally suited fo r either the fam ily-sized farm or the
large commercial operation.

WIDE RANGE OF ADAPTION
Brown Swiss, being hardy and rugged, perform well in all climates
and at all altitudes. They are very heat tolerant and are excellent
grazers and rustlers.

DURABILITY UNEXCELLED
Brown Swiss have size, scale and power, well attached udders o f good
texture and strong, sound feet and legs.

RAPID GROWTH
Brown Swiss calves grow and gain ra p id ly and mature into large,
milky, long-lived cows. Registered Brown Swiss bulls cross well with
beef breeds. Those not sold fo r breeding purposes make ideal veal
and beef.

GREATER SALVAGE VALUE
The large Brown Swiss cows are worth more when their long produc­
tive lives fin a lly come to an end.

Bulls & Breeding Stock fo r Sale
for information, write

BROWN SWISS ENTERPRISES
P.O. BOX 1038
BELOIT, W ISCONSIN 5351 1


https://fraser.stlouisfed.org
46Reserve Bank of St. LouisCircle N o. 20 For More Information
Federal

For The Dairyman
(1 ) Brown Swiss cattle have well
dem onstrated their ability to produce
a large volum e of an ideal 4% m arket
milk — high in protein giving it m ore
body building pow er and a better taste.
The high total solids and “solids not
fat” content of Brow n Swiss milk
m akes it an excellent source of food
energy needed in every day diet.
(2 ) A nother plus for the dairym an
is the long productive life of the “Big
Brown Cow” . Brown Swiss have a long
milking lifetime — requiring fewer
herd replacem ents and enabling the
breeder to sell m ore breeding stock.
A high percentage of cows are eight
years old or more.
(3 ) Brown Swiss calves grow and
gain rapidly and m ature into large,
milky cows th at have size, scale and
power with well attached udders of
good texture and strong feet and legs.
(4 ) The Brown Swiss cow is a free
feeder and has a great capacity for
storing and digesting food. In their n a­
tive environm ent little or no grain was
fed, hence the breed developed
strength, vigor and the ability to rustle
for available forages.
(5 ) Because of their quiet, docile
tem peram ent, Brow n Swiss cows are
ideally suited for either the family­
sized farm or the large com m ercial
dairy operation,
(6 ) Brown Swiss, being hardy and
rugged, perform well in all climates
and at all altitudes. Studies in the cli­
m atic laboratory at the U niversity of
M issouri have proven th at the Brown
Swiss breed is one of the best suited
for the h o tter sections of our country.
She is one of the few cows that will
graze freely during the heat of the day.
It has long been known that the “ Big
Brown Cow ” thrives in the northern
m ost sections of the U.S.
(7 ) The size, weight and heavy
muscling of Brown Swiss cows provide
them with high beef or salvage value
when their long productive lives in the
milking herd come to an end.
For The Beef Man
(1 )
Purebred registered Brown
Swiss steers in the feedlot have been
found to gain 10 to 15% faster than
beef steers fed to the same age. These
trials also point out, when com pared
to the same size, that dairy beef ani­
mals have less carcass finish. But, b e­
cause of this and because of faster
gain, dairy beef generally has a feed
conversion ratio 5 to 7% better than
N o rth w e st ern Banker

4

REGISTERED Brown Swiss bulls are struc­
turally sound and well balanced. They sire
growthy, good doing calves. Their FI
heifers make excellent herd replacements
and the steers make rapid gains and hang
quality carcasses.

the feed conversion of the conventional
beef breeds. T heir carcass quality is
very satisfactory.
(2 ) C rossbreeding, to be successful,
must involve the use of proven, superi­
or pureb red parents. O ne of the basic
concepts in crossbreeding is that the
greater the genetic difference between
two breeds, the greater will be the h y ­
brid vigor obtained in the resulting
cross. B row n Swiss have a long history
of im provem ent through perform ance
and selection, and are recognized as
one of the oldest dairy breeds. Because
the genetic background of the Brown
Swiss differs widely from that of the
well-know n English beef breeds, it
would seem B row n Swiss are well
qualified to produce superior results
in a beef crossbreeding program .
(3) Brown Swiss F, fem ales are
consistently good m ilkers, and because
of this, creep feeding is seldom neces­
sary for m axim um gains. The relatively
high level of m ilk production of Brow n
Swiss crossbred fem ales is a m ajor
contributor to the weight superiority
enjoyed by their calves over other
crossbred and straightbred calves at
weaning time.
(4 ) In a feeding test recently com ­
pleted at the U niversity of C alifornia,
Brow n Swiss crossbred steers returned
an average of $8.16 m ore than the 68
head average on 7 groups of steers
tested.
(5 ) F ast gains and pounds alone do
not insure profits in beef production.
Feed efficiency and high grading car­
casses are a m ust for m axim um profits.
Brown Swiss crossbred steers have
consistently yielded choice carcasses,
not only in various feeding experi­
ments, but fo r feed lot operators in all
sections of the U nited States. In the
C alifornia feeding test, cited above,

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88% of the Brown Swiss crossbred
steers reached choice grade — by far
the highest percentage of all of the sire
groups tested.
(6 ) O ther studies on crossbreeding
with B rown Swiss have been conducted
and are currently being conducted at
m ajor universities across the country
and at the U.S. M eat and A nim al R e­
search C enter in Clay Center, N ebras­
ka. T est results so far provide favor­
able d ata on the use of Brow n Swiss
in beef m anagem ent and crossbreeding
program s.
(7 ) Perhaps the m ost im portant
considerations for the new beef inves­
tor interested in registered Brown
Swiss for his breeding program are
cost and availability. Because Swiss are
an established A m erican breed, bulls,
as well as semen from perform ance
tested bulls are readily available at a
price the new investor can afford.
(8 ) The Brown Swiss A ssociation
has opened two herdbooks for record­
ing and registering Brown Swiss Beef.
This includes Brown Swiss F, females
and other percentages of Brown Swiss
breeding to be recorded in the Brown
Swiss Beef Cross Record. Through an
upgrading program in the Cross R ec­
ord, individuals can be registered in
the B rown Swiss Beef Registry.

Importance Of Purebreds
T he new investor, w hether inter­
ested in a dairy operation or a beef
program , m ust realize and utilize
proven, superior purebred parents.
T he fundam ental principle involved in
breeding better livestock is continual
generation after generation m ating of
the best to the best. T he test of time
has proven that this basic principle will
result in the m ost rapid improvement.

THIS TYPICAL Brown Swiss cow, clas­
sified Excellent, was recognized as an AllAmerican in 1969, 1970 and 1971. As
a five-year old she produced 19,560 lbs.
milk and 833 lbs. fat in 309 days. Brown
Swiss cows will average around 1500 lbs.;
some will weigh more than a ton.

In order to effectively use this prin­
ciple, two basic items of inform ation
are absolutely essential: (1 ) positive
and accurate identification of individ­
ual anim als and a m eans of making
this identification perm anently avail­
able. (2 ) A system of accurately eval­
uating the desirable characteristics of
each individual anim al to enable selec­
tion of the “best.”
F o r the dairym an this involves regis­
tering his animals, production testing
and type classification. A nd m ost im ­
portantly, the use of proven sires of
proven genetic background.
As far as the beef m an is concerned,
the success of any crossbreeding
scheme will always be dependent upon
superior genes. Only purebred regis­
tered bulls should be used in a cross­
breeding program . W ithout purebreds,
there would be nothing to crossbreed.
Records of identification and perform ­
ance data are another m ust for any
beef venture to become a profitable
operation. — End

M arketin g Program M ay Increase Value
Of P olled H ereford C a ttle a n d H elp B reeders
B y HAROLD HUNTER
C h airm an o f th e B o a rd o f D ire c tors
A m e ric a n P o lle d H e r e f o r d A ssociation
K ansas City, M issou ri
O R A N IN D U STRY that is well
into its second century of develop­
m ent, the purebred segment of the
A m erican beef cattle business has
com e a long way in supplying the
needs of the wide range of com m ercial
beef producers on this continent.
Fully 95% of the im provem ent in
production levels of beef cattle in the

F

U nited States and C anada over the
past 125 years can be attributed to the
seed stock producers of all breeds. It
is true that some basic trends during
this period have slowed the increase
in beef cattle efficiency for a time. Still
w ithout the experim entation and re­
search carried out by purebred breed­
ers, the beef industry in all of N orth
47

America would be in the dark ages of
developm ent.
M ost purebred breeders, especially
in the last q u arter century, have been
making a concentrated effort to p ro ­
duce a breeding anim al w ith built-in
efficiency on grain feed. P articular em ­
phasis has been placed by the industry
on growth rates, carcass values and re­
production. Calf crop percentages
across the nation have risen steadily
and gains on feed and feed utilization
figures have risen steadily as a result
of the intense efforts of purebred
breeders in producing seed stock with
these qualities.
The one area in which the purebred
segment of the industry has fallen be­
hind has been in the effective m ark et­
ing of its product. T here has been little
change in the accepted m arket proce­
dures for purebred cattle in N orth
A m erica in the last 100 years. F o r this
reason the rank and file seed stock p ro ­
ducer, who has spent so m uch of his
time in developing a better product,
is realizing less than his fair share of
the industry income.

Total Marketing Concept
We at the A m erican Polled H erford
A ssociation have been studying this

situation over the last year and a half
and are developing the “total m arket­
ing concept” which we believe will ulti­
m ately increase the value of Polled
H ereford cattle around the world and
will secure for Polled H ereford
breeders a larger share of the total
purebred m arket.
As a basis for this new concept, we
are assum ing that every program im ­
provem ent and function of our organi­
zation be based on m arketing our cat­
tle m ore effectively. Since m arketing
is “ the adding of value to a product”
we are developing new program s in
perform ance, new form ats for pedi­
grees and new m ethods of evaluation.
T hese we believe will enhance the
value of Polled H ereford breeding cat­
tle to o u r established buyers and will
secure for Polled H erefords a share of
the m arket now held by cattle of other
breeds.
But these are only the beginnings.
We are becoming involved in an inten­
sive prom otion program w hich will en­
courage every breeder of Polled H ere­
ford cattle to becom e effectively in­
volved in advertising, publicity and in
general telling the Polled H ereford
story to a widening segment of the
world cattle industry. We are, in fact,
attem pting to teach our production-ori­
ented breeders to become m ore in­
volved in m arketing program s.

Communication Tie
T o better com m unicate this m arket­
ing effort within our own organization
we have tripled the circulation of our
Polled H ereford W orld m agazine so
that it now goes to every active
breeder. T hrough this com m unications
tie we hope to give our breeders m ore
incentive and a better working know l­
edge of m arketing.
Realizing the pow er and the influ­
ence of o ur show program and its po­
tential in this effort, we have m ade
m odifications which will m ake it a

M A K E M O N E Y IN
P U R E B R E D C A T T LE
A c le a r, c o n c is e , e a s y -to -re a d g u id e to
in v e s tm e n ts in th e n e w p u re b re d c a ttle
b u s in e s s . G e t th e a n s w e rs o n th e p le a s u re
a nd th e im p ro v e d p ro fit p o te n tia l th e in ­
d u s try o ffe rs . L e a rn th e b a s ic h o w s a nd
w h y s o f m a k in g s u c c e s s fu l in v e s tm e n ts
in a fie ld th a t o ffe rs b o th s e c u rity a nd g o o d
c a p ita l g a in s p o s s ib ilitie s .

*

Mail $1.07 for Each Copy to:

Investor Program
To secure more capital from outside
the cattle industry we have inaugurated
a program to interest investors in beef
cattle. We have published a book en­
titled “ M ake M oney in Purebred C at­
tle” and are in the process of circulat­
ing this w ork as widely as possible. We
are studying a program for bringing
together groups of investors who wish
to become involved in the improved,
m ore profitable purebred Polled H ere­
ford industry of today. In this way we
hope to supply our particular segment
of the industry a continuing flow of
new capital, the life blood of any de­
veloping industry.
Ju st as trends and m ethods of p ro ­
duction have changed in the beef cattle
industry over the years, we believe
there is a necessity for a change in
m arketing procedures. Ju st as the
A PH A has set the trend in production
and perform ance program s during the
last decade, we intend to set the trends
in the m arketing of purebred livestock.
We do this certainly for the im ­
provem ent of the profit factor of our
own breeders but we do it also for the
betterm ent of the entire purebred seg­
m ent of the cattle industry around the
world. — End

Shorthorn A ssociation Has 100th B irth d a y

T
*

American Polled Hereford Association
4700 East 63rd St., Kansas City, Mo. 64130

Quantity_____ Amount Enclosed________
Name________________________________

Address____________________________
City__________________________________
State________ _____________________

■ Zip--------------------------

m ore vital tool throughout the indus­
try. We have introduced a three judge
com posite system in our Standard of
Perfection Show (SOP) program and
at our N ational Polled H ereford Show.
We will provide perform ance inform a­
tion on all entries in the SOP shows
and are instructing our judges to consider this strongly when making their
placings.
By 1973 all anim als com peting for
SOP points m ust have G uide Lines
records. A nd we have gone into an in­
tensified program of grass roots pro­
motion of all of our shows to involve
m ore local people and m ore of the
com m ercial industry.

■


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H E Y E A R 1972 m arks the 100th
anniversary of the A m erican Shorthorn
A ssociation, O m aha, Nebr. A year of
centennial observations will culm inate
at the N ational W estern Stock Show
in January.
Shorthorns have m any firsts in the
beef cattle industry:
• They are the oldest beef breed in
existence.
* They were the first im proved

breed to be im ported into A m eri­
ca, coming in 1783.
• The A m erican Shorthorn H erd
Book is the oldest beef registry
in the United States being estab­
lished in 1846.
• Polled Shorthorns were the first
m ajor beef breed to be developed
in the U.S., originating in 1881.
T he Shorthorn breed has one of the
m ost com prehensive program s for regN o rth w e stern Banker

<

4

for 75 years.

*

istered and com m ercial S horthorn
breeders in the world.
* A “ Record of P erform ance” pro­
gram w here weight and perform ance
data is tabulated to determ ine the best
perform ing bloodlines.
• A “Sire of T he Y ear” program ,
recognizing sires whose progeny com ­
pile the best show records.
* A n “A ppendix Registry” p ro ­
gram , an upgrading registry for com ­
m ercial Shorthorns and Polled S hort­
horns and th eir crosses w ith o ther
breeds.
• The m ost unrestricted artificial in­
sem ination program of any cattle as­
sociation allowing breeders to use the
greatest sires of the breed in their im ­
provem ent program s.
Shorthorns are the w orld’s m ost n u ­
m erous beef breed with over 30 other
recognized beef breeds tracing to
Shorthorn origin. T his founding record
clearly establishes the S horthorn as the
m ost successful im prover in cross­
breeding program s.
So Shorthorns have been and con­
tinue to be a m ajor p a rt of the A m eri­
can Livestock picture. — End

Sim m e n ta l O ffers
Four A d va n ta g e s
B y CHARLES H. DODGE
M e m b e r , B o a r d o f T ru ste e s
A etn a S ta le B an k
Chicago, Illinois
A T T L E may not be at the top of
everyone’s investm ent list, but
they certainly rank high. A nd this dis­
cussion would hopefully point out that
in a diversified investm ent program , a
cattle operation would have a com peti­
tive position.
A fter satisfying ourselves that cattle
are a good investm ent, let’s choose a
breed. H ow do Sim m ental stack up
econom ically on a long term basis?
C ertainly, to date, we have seen high

C


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Federal Reserve Bank of St. Louis

prices fo r cattle with Sim m ental blood.
But over the long run how can Sim­
m ental m ake you money? L et’s ana­
lyze from an econom ical basis the ad­
vantages of the breed.
1. Disposition — Simmental cattle
are exceptionally docile, which is very
im portant to an A I program , thus add­
ing efficiency to your operation.
2. Fertility — Consistent calving in­
tervals is an outstanding Sim m ental
trait. I heir ability to breed back and
calve regularly every year is of obvious
econom ic im portance. The breed also
is known for its production of twins,

Shorthorns . . . .
There are m any new beef
breeds in A m e rica to d a y but
the BEST breed . . . . as it was
nearly 300 years a go .
is

SHORTHORNS!
Shorthorns

g ive

you

extra

w hereas 2% of heifers and 11% of
m ature cows have twins. We have ex­
perienced over 97% conception on
F -l heifers through A I. A 100% calf
crop should be the goal of all breeds
and that starts with conception and fer­
tility.
3, Milking Ability — M ilk is essen­
tial for heavy weaning weights, and
m ilk is one of the m ost im portant ge­
netic traits Sim m ental offers to the
A m erican cattlem an. Because milk
perform ance is one of the E u ro p ean ’s
prim ary selection criteria, their udders
and teats are extrem ely well form ed.
4. Weight Gain — T o date, United
States and C anadian production rec­
ords indicate Sim m ental calves will
w ean 10% to 25% heavier than
straight bred English breeds. In feed
lot tests, Simmental crosses have con­
sistently and substantially outgained
the English breeds. This is an obvious
econom ic advantage.
T he first K entucky C entral Bull Test
just com pleted was won by a Sim m en­
tal cross bull. In our operation we in­
creased our weaning weights 105

FOUR ADVANTAGES . . .
( Turn to page 61, please)

The Best Investment!
m ilking a b ility , d o cile tem ­
peram ent, higher g ra d e and
faster gains. For the fe e d lo t
investor, or the co w -c a lf man,
Shorthorns an d Po lled Sh o rt­
horns are the breed with the
gre a te st investm ent return.

For more inform ation about the PROFIT BREED write

n .
OMAHA, NEBRASKA 68124

Circle No. 22 For More Information

49

Capital Adequacy
and
Competitive Equality
*

B y LEWIS E . DAVIDS
Hill P r o f e s s o r o f B a n k M an age m e n t
U n iv e rsity o f M issouri
C o lu m b ia , M issouri

R E A T H E S there a banker in his
profession for at least a decade
who has not questioned the capi­
tal adequacy of his bank? F o r the m ost
part, these questions are raised by
bank supervisors or, to a sm aller ex­
tent, by the board of directors. C apital
adequacy of banks is a source of
heated discussion at alm ost every bank
m anagem ent conference. A s one views
the topic of dual banking, capital ade­
quacy does raise some questions as to
the com petitive equality espoused by
the P resident’s C om m ission on F in an ­
cial Institutions (the H u n t C om m is­
sion). It is alleged th a t national ch ar­
tered banks are given greater freedom
in their capital adequacy decisions. In
fact, conventional w isdom is th at views
of the Regional C om ptroller of the C ur­
rencies on capital are m ore lenient
than those of supervisors of the state
chartered banks, especially those
which are m em bers of the F ederal R e­
serve System.
A t issue is w hether the conventional
wisdom is true. M y own feeling is that
some F ed eral R eserve D istrict banks
have a m ore stringent approach to
such areas as exam ination and capital
adequacy th an others. T h e hum an ele­
m ent of the R egional A dm inistrators
of N ational Banks m ay also influence.
Some point out th a t very serious
problem banks have existed fo r years
w ith im paired capital. This in turn
raises the question, A t w hat point in
tim e does the im pairm ent becom e criti­
cal?
Students of banking history w ho re­

B


https://fraser.stlouisfed.org
50
Federal Reserve Bank of St. Louis

call the M edici B ank in Italy and n u ­
m erous continental m erchant banks
are quick to point out that some
of these banks apparently existed for
years w ithout any capital and that per­
haps the question of capital adequacy
is academ ic. A nd possibly, the H u n t
C om m ission approach of com petitive
equality should be th at all banks State,
F ederal Reserve M em ber C hartered,
and F D IC should be held to the same
basic ground rules. T hose ground rules
w ould include an agreed upon form ula
for the determ ination of a m inim um
am ount of capital.
T his approach appeals to m any aca­
dem ic people, in theory. T he problem
is th at we could have two identical
banks’ statem ents as far as their dis­
tribution of assets and liabilities and
capital. B ut if one had a loan portfolio
of p o o r grade debt-refunded and ques­
tionable hom e m odernization loans
and the other had a portfolio of loans
to prim e corporate accounts there
w ould, of course, be a difference in the
risk involved.
By the sam e token, a loan portfolio
of predom inantly short term self-liqui­
dating loans in the com m ercial banking
trad itio n w ould possibly be valued at
a very different rate than long term
loans of seven o r m ore years. T he n a­
ture of the term of time being longer
in one b ank’s portfolio passes a greater
possibility of the risk of an adverse in­
terest rate affecting the value of a loan
portfolio.
T his type of reasoning could be ap­
plied to unit banks. F o r example,

floods and droughts may have an im ­
pact on the earnings and profitability
of a unit bank while having little effect
on branching banks with operations
over a wide geographic area and a
greater diversification by product line
of their loans.
Investm ent portfolios have different
types of risk. Long term m unicipal
bonds of an unrated nature probably
involve greater concern than short
term treasury bills. In 1954 the A m eri­
can Bankers A ssociation R esearch
Council m ade w hat was up to then the
definitive study of the adequacy of the
banks capital. T hat study said that
that bank m anagem ent is responsible
for determ ining capital adequacy. This *
is in opposition to the H u n t Com m is­
sion, which could be interpreted as a
uniform regulatory approach of m ain­
taining com petitive equality.
P erhaps these two positions are not
as inconsistent as m ight first appear. ,
T he regulatory approach, being of a
floor. The com m ercial bankers ap­
proach, of recognizing the floor re­
quired by law but adding bank m an­
agem ent’s discretion in providing addi­
tional funds beyond that m inim um
level. T here is solid ground for ap ­
proach because m any banks exceed the
recom m ended levels for BBB cover­
age.
A nother fact is that larger banks es­
pecially tend to increase the mix of
their capital to include preferred stock
and capital notes and debentures.
Besides, approxim ately 80% of in­
creases in bank capital over a period
N o rth w e ste rn B an ker

Correspond with the bank that initiated the concept of correspondent
banking. And still maintains its first correspondent relationship.
Correspond with the bank that today spends more of its talents and
revenues on investment skills than any other major commercial New
York bank. Provides every usual correspondent service (including loan
participations, cash management and international banking ) with
unusual care, thoroughness and personal attention. And helps you
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basis of a complete and in-depth analysis of the total investment picture.
Correspond with The Bank of New York. The bank with money
management skills.

The Bank of New York. The bank that manages money.
Main Office. 48 Wall Street, New York, N Y. 10015

S e p t e m b e r, 1972
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Member of The Bank of New York Company, Inc.

Member FDIC
51

**. . .

p u b lic con fiden ce m u st be a d e q u a te . “

of tim e tend to be derived from re­
tained earnings. A num ber of bankers
and men w ith high qualifications be­
lieve th at only generalizations can be
m ade about the adequacy of bank cap­
ital.
A s Dr. E d R eed has said, “It is im ­
possible from a practical standpoint to
determ ine capital adequacy of a p ar­
ticular bank o r even of the com m ercial
banking system. W e do not know the
future dem and that will be m ade on
capital.”
It is Dr. R eed’s position, th at al­
though regulatory standards, in term s
of capital adequacy, have been estab­
lished fo r m easurem ent, th at logic and
past experience indicate they are not
perfect for an individual bank. T here
is considerable doubt th at they really
apply to the U nited States banking sys­
tem.

Lower Capital
In this context it m ight be well to
point out th at during the 1920s and
1930s many of the banks th at failed
had greater capital in relationship to
assets and deposits than m any banks
do now. T his low er need fo r capital
m ay be due to m ore public confidence
in banks, instilled by the F ederal De­
posit Insurance C orporation.
Professor H a rte r of the U niversity
of C olorado, in a recent article in the
M agazine of Bank A dm inistration,
cites the following im portant factors
to consider: 1) earning powers under
adverse conditions, 2) liquidity under
adverse conditions, 3) quality and
likely deterioration of quality in the as­
sets held, 4) alternative sources of new
capital and 5) ow ners adversión to risk
of failure. T his along w ith Dr. R eed’s
position says that the future is the
basic determ inant of w hether capital
is adequate in term s of business fluctu­
ation and other factors.
The m ore lenient view of the C om p­
troller of the C urrency of N ational
Banks utilization debt in their capital
structure appears to put pressure on
the state chartered banks. This is espe­
cially true of state chartered banks th at
are m em bers of the F ederal Reserve
System, to the extent that one charter­
ing agency becom es significantly and
m aterially m ore liberal than the other
regulatory agencies. This is only one
of the increm ental pressures which ap
https://fraser.stlouisfed.org
52
Federal Reserve Bank of St. Louis

pear to be m otivating banks away from
m em bership in the Federal Reserve
System.
A s pointed out in the preceding
com m ents, there are m any opinions on
bank capital.
A study made for the Federal Re­
serve Bank of Cleveland has just been
com pleted by Lucille S. M ayne, associ­
ate professor of banking and finance,
C ase W estern Reserve University. T he
study says that “A lthough the evidence
is som ew hat mixed it does not appear
to support the hypothesis that there ex­
ists significant difference in the am ount
of capital funds held by national, state,
federal reserve system m em bers and
non-m em ber banks, when the influence
of other factors is held constant. The
differences th at are evident are rarely
of such m agnitude as to be im portant
either in a statistical or econom ic
sense.
“ It is conceivable that m ore stand­
ardized capital exam ination procedures
might increase the degree of banker
com pliance w ith exam iners request for
additional capital . . . . the best assur­
ance of capital sufficiency would ap­
pear to be m anagem ent com petency,”
the study says in conclusion.
M ost banks do have com petent
m anagem ent. H ow ever, in this respect
one m ay w ant to ponder Dr. R eed’s
position, “T here is no law that forces
a bank to increase it’s capital but regu­
latory authorities have ways which
som etim es accom plish their objective,
such as special exam inations, the clas­
sifications of loans, publications of the
condition of the bank and the search­
ing of some violation of banking law
th at could be used as leverage to an
enforced com pliance.”
Prove Insufficiency
He goes on to point out th at to em ­
ploy such pow ers as cease and desist
orders or the rem oval of officers and
directors, the regulatory body of the
C om ptrollers Office, for example,
would have to prove that insufficient
capital existed. This would be difficult
to do, according to Dr. Reed.
It is the responsibility of m anage­
m ent and only in a secondary sense
that of the supervisory agency to m ake
sure th at your bank has sufficient capi­
tal to sustain losses in its assets and
m aintain the ability to pay depositors.

T o do this the public confidence in
your institution m ust be adequate u n ­
der a situation of diversity. Y et the so­
phistication of depositors, in term s of
their knowledge of the capital struc­
ture of the bank, appears m inim al. T he
general public is probably less in­
form ed than both the banks and the
bank supervisors as to the adequacy
of capital.

A

May Show Bias
W hile in theory the board has the
obligation to establish adequate capital
in too m any instances the board as a
whole m ay n ot be the best body to
weigh the problem . Reason? M ajor
shareholders often are directors and
additional capital tends to result in a
lower rate of return.
The C EO ? inside m anagem ent of
the bank frequently is reim bursed in
direct relationship to the profits rate
earned after taxes. T hus, they too have *a possible recognized or unrecognized
bias to favor under capitalization. Su­
pervisory agencies have a bias tow ard
over capitalization.
Is there a com bination that may bet­
ter resolve the problem ? It may be a
sub-com m ittee of the board, com posed
of highly qualified outside directors «
who in a “ de m inim us” sense hold only
qualifying or such small proportions
of the bank’s stock that their judgm ent
is not influenced tow ards under capi­
talization or over capitalization. This
sub-com m ittee should be charged with
weighing the requests or dem ands by
bank supervisors and w ith keeping
abreast with the statistics and litera­
ture on the subject, with seeking the
advice and counsel of experts in the
field such as their bank’s outside certi­
fied public accountant.
In fact, in the selection of a candi­
date for a board vacancy one should
keep in mind the board balance and
expertise called for to m ake a m ean­
ingful contribution in such a sub-com ­
mittee.
T he sub-com m ittee’s report which
w ould be entered into the board m in­
utes would be weighed by the board
and the C E O and voted upon by the
entire board. Such a procedure would
have a balancing influence on the su­
pervisors and on large stockholder di­
rectors. It would also provide an objec­
tive approach to your own bank capital
structure. — Find
N o rth w e stern Banker

Farm experts at The First like Ben Hauenstesn and Jud McManigal
have years of experience in agricultural financing. They understand
farm operations— talk farm talk. And they are ready to participate
in agricultural loans.
They can help you serve customers who are expanding their
livestock and crop operations to increase farm profits. Or, they can
help with term loans for capital investments in machinery, equipment,
and facilities to improve efficiency and increase profits.
The farm specialists in Division F know how to get the money.
Yet helping you help your customers with agricultural loans is
just one of the many ways our correspondent bankers give you
expert service. We also can help you solve problems involving
commercial loans, international banking, cash flow, internal
operations, and many more.
Why not talk to a banker whose only customer is his
correspondent—you. Make your first call The First —

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specialists to call
for overline help
on agricultural loans
Digitized
S e p t efor
m bFRASER
e r , 1972
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

53

By JAMES E. BROWN
S e n io r Vice P r e sid e n t
M ercantile T ru st C o m p a n y
St. Louis. M issouri

H

Creating
New

Ma

For Bank
Growth

. . . delivered before the
M idw est Banking Institute
at the University of
M innesota.


54
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

E R E are my views on the future
of small unit banks, for corre­
spondent banking, and in fact, for com ­
m ercial banking in general, as it might
unfold here in the M iddle West.
W e in the unit banking states, es­
pecially, are at the cross-roads. We are
within the m idst of a frustrating and
changing society: we are only now
within the reach of m ore proficient us­
age of com puter technology; and, in
fact, we are literally em bedded in a to ­
tal environm ent of overwhelming
change. Profit was com paratively easy
for banks a few years ago when our
spread of money costs and interest
charged showed m ore light. But I be­
lieve th at everyone here will agree that
this has changed dram atically. The sig­
nificant message to me is: create new
m arkets for the profitable grow th of
our banks.
In today’s environm ent, the con­
sum er is still king, and so m any of our
new regulations and laws bear evi­
dence of this kingdom . But, there is
really nothing new about this trend.

F ed ’s responsibility to the Congress
and to the depositors of our banks.
We have seen the m any problem s
and abuses that the F ederal Reserve
G overnors have seen. W e know w hat
has prom pted their reaction. In recent
m onths we have witnessed new inter­
pretations in the field of holding com ­
pany activities, check collection sys­
tems, reserve requirem ents, and, of
special significance to bankers in the
M iddle W est, severe guidelines affect­
ing small one-bank holding com panies
and the transferability of bank ow ner­
ship.
I have heard from a num ber of other
correspondent bankers who are ex­
tremely apprehensive about the role of
the F ederal R eserve System and its
“ intrusion” in the conventional activi­
ties of banks. In special focus today
is the new regional check clearing sys­
tem of the F ed and even here I believe
it will offer a continuing role for cor­
respondent banks and m ost sm aller
banks will find the correspondent pref­
erable to direct sendings to the Fed
clearing house for check processing.
It is an endless list th at reflects the
services a m ajor correspondent can
provide th at the Federal R eserve banks
could not dream about doing. A nd, I
am satisfied that the Federal Reserve
recognizes the im portance of cor­
respondent banking and does not in­
tend to usurp this system.

Consumerism
A s we witness new com plications in
these cross-winds of consum erism , and
socialistic trends, some bankers see a
real danger that we will capitulate to
the status of a not-for-profit organi­
zation and th at will becom e financially
enervated.
In the area of changes within the
F ederal Reserve System, it is im pera­
tive that we take advantage of every
opportunity that the F ederal Reserve
System has provided us and respond
intelligently to the m any actions it has
proposed. T hey will have a great im ­
pact upon all of us. I believe th at the
Fed has been not only fair, but has
provided real direction and, in fact, in­
spiration to banking. T here are oppor­
tunities w ithin their proposals that re­
quire guidance and realistic coopera­
tion th at we, as practical com m ercial
bankers, can contribute. W e have to
rem ain ever alert to these changes and
anticipate the F ed, keeping forem ost
in mind the over-all knowledge of the

Thrift Industry Pressure
A nd, in the opposite corner, we see
the role of the consum er, cham pioned
by the cheer leaders in the thrift indus­
try who have aligned themselves with
the “family m an.” We are threatened
by not only the thrift industry’s perva­
sion into the area of total consum er fi­
nancial needs as reflected in the H u n t
Com m ission R eport, but by their move
into the m arketplace through “m ini­
branches.”
T he fact is that, if we don’t w atch
out, they will beat us at our own game.
A nd by th at I m ean, personal trust
business; checking as well as savings
accounts for the individual; consum er
credit; personal counselling; and the
entire array of financial m atters that
are so im portant to the financial plan­
ning of individuals. I hope that each
and every one of you as com m ercial
bankers will accept this as a challenge
and as a m atter of existing fact, and
will say to yourselves: “W hat am I goN o rth w e stern Banker

#** '\

"CK
v

-

HELLER.
And w e'll send you a copy.

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New York • Boston • Philadelphia • Baltimore
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companies in Canada and eighteen other
countries around the world.

Digitized
S e pfor
t e mFRASER
b e r, 1972
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Most bankers know through experience that a
participation loan is as good as the lending partner
involved. Which is why so many banks have
chosen to work with Heller for over 30 years Î
This year, 11 of the country's 25 largest banks
have participations in one or more Heller loans;
most of our participants, however, are banks of
moderate size, many with capital and surplus
accounts below a million dollars.
The way we do it, a participation is often the ideal
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As they say, we wrote the manual, and for your
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Circle No. 23 For More Information

. .

p ro vid e the service ou r cu stom ers d e s e r v e /

ing to do about it?” Y ou are faced
with growing com petition from all
sides; you are faced with growing
strain on cost control and taxes; you
are faced with growing strain on your
personnel and future m anagem ent tal­
ent. Also, you are faced with new tech­
nology w hich has only begun to be put
to w ork wisely and effectively in the
field of banking.
Y ou are faced with a growing trend
to socialism and to m ore costly con­
trols; you are faced with the loss of the
insulation you have h ad on interest
ceilings and, at the sam e time, faced
with a lower ceiling on the rates you
can charge for your services.

Accelerated Demands
As bankers, you are facing acceler­
ated dem ands upon your tim e and your
resources dicated by your role as citi­
zens and developers of your com m uni­
ty, and by the fulfillment of your own
m oral goals. This desire to m eet these
dem ands m ust be attained w ithout for­
feiture of profitability within our
banks. It is obvious th at a banker who
is failing to run his bank profitably and
efficiently will soon be in no position
to look out for anyone else’s needs and
will quickly have to concentrate upon
his own welfare. This challenge calls
for a balanced program of your time
and resources. This balance is the true
difference between you and your com ­
petitor.
Possibly the greatest of all of our
challenges lies in the developm ent of
future m anagem ent. We have learned
that financial incentive alone, while
very im portant, is not the only way to
attract and keep top m anagem ent and
com petent staff m em bers. The need to
distribute the responsibility and the ex­
citem ent of challenges will find an
eager recipient am ong m any of your
younger bankers and future bank em ­
ployees.
I accept the fact too, that even m ore
obstacles will face us, but I cannot ac­
cept the fact th at a successful future
can ever be realized if we start out
w ithout plans, and with a defeated at­
titude. N o r am I naive about giving
away everything and being willing to be
tram ped upon.
W hether you agree with all of the
barriers th at I have outlined, o r w heth­
er you accept only a few of them , w hat
are you going to do about it?
As a correspondent banker, I w ould

56
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

first of all urge you to m aintain a prof­
itable and good relationship with your
city correspondents. I know for a fact,
th at it is hum an nature, as well as good
business practice, for profitable rela­
tionships to pay m utual dividends. I
have seen in the periods of tight money
and lim ited resources and excessive de­
m ands, a willingness, and, in fact, a
keen enthusiasm on the p a rt of city
correspondent bankers to go out of
their way to provide realistic help
when they know you have treated them
right and will continue to treat them
right. If you haven’t found that kind
of correspondent bank relationship I
would suggest that you sit down and
talk frankly about the situation to the
bankers with whom you correspond,
I know it will produce results. If it
doesn’t — you know the alternatives!
W e see new com petition inside fi­
nancial circles and by forces on the
param eter of these circles. In short, I
think we need a new road m ap — but
this directional aid is needed only if
we know where we w ant to go.
B ut I am not here to carve out a fu­
ture of despair. I am here because I
am optim istic and w ant to share the
reasons for this optim ism with you. I
w ant to help develop that new road
m ap.
Frankly, w hat I really want to ex­
press to you today is a result of many
m onths of analyzing and projecting the
course that we as com m ercial banks
m ust take if we are to rem ain com ­
petitive, profitable, and at the same
tim e reverse the growing and costly
problem of not serving our customers.
We m ust provide the service our cus­
tom ers deserve and to which they will
respond.
T o be specific, I would like to sug­
gest a future for both large and small
banks which I believe could revolu­
tionize banking and produce greater
benefits to our custom ers and our
banks.
Unit Banking?
L et me say at the outset, that unit
banking, as some of us might think ex­
ists today, is a m ockery. F o r example,
we have holding com pany affiliations;
we have multi-office arrangem ents for
activities closely related to banking,
such as m ortgage com panies, factor­
ing com panies, and leasing companies.
We have loan production offices even
in unit banking states. We have the ca­
pacity of dispensing cash on a credit

card through the cash advance system
thousands of miles away from the bank
where the custom er was issued his card
and the line of credit that went with
it. Even in our unit banking states we
are perm itted to have Edge A ct sub­
sidiaries around the world. U nit b an k ­
ing?
F undam ental to the recom m enda­
tion that I am about to m ake is the
current state of our technology and the
fact that we are only now beginning
to utilize this capability. A dditionally,
we have a m andate to reduce the grow­
ing volum e of check transactions be­
fore we are buried in an avalanche of
paper. T o this end, I expect to see the
F ederal Reserve suggest that payroll
checks should be classified as non-par
checks in the system and to require
that all paym ent for em ploym ent serv­
ices be m ade by a deposit directly from
the em ployer to the bank of the em ­
ployee’s choice. In a “pay-checkless”
society world, it is easy to envision
m ost employees (on payday) with a
need to have cash for their m any re­
quirem ents. Today the superm arkets
are cashing checks 12 hours a day, 6
or 7 days a week, and are absorbing
a loss or expense on this check cash­
ing activity to the extent of approxi­
m ately 5% of the check volum e they
handle.
This expense must, by necessity,
be passed on to the consum er in the
form of increased prices for groceries
and m eat. It is part of the overhead
and a good retailer m ust recognize it
as such. M r. Em ployee knows that he
has m oney in his bank account, de­
posited there by his em ployer, and he
m ust have a better vehicle to get it out.
T he cash dispensing m achines that are
available today can provide the con­
duit to accom plish this. B ut the poten­
tial result of such procedure runs deep­
er — and has a direct im pact upon
your bank.

Convenience Centers
By m eans of a m agnetically striped
credit card or check identification card,
coupled with interface techniques,
these m achines can becom e Financial
Convenience C enters, for the purpose
of dispensing cash, and, eventually, to
transfer funds from credit lines to

CREATING NEW MARKETS . . .
( Turn to page 97, please)
N o rth w e stern B a n ke r

■ •

A

one line of
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combines computer generation with the professional
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Flushed
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Ads on coupons
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Net-only coupon available if preferred
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S in c e


Septem ber, 1972
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

.ZIP.

.STATE.

0

Circle No. 24 For More Information

I« ;

!

CUMMINS-CHICAGO CORPORATION
4 7 40
North Ra vensw ood Avenue
C h i c a g o . I L 606 4 0 ■ ( 3 1 ! ) 5 6 1 - 6 6 0 0

S7

C a ttle O utlook S u rvey

. . .

( C ontinued from page 4 2 )
even at the higher prices. The public, in general, is better
paid and willing to spend a larger portion of their pay­
roll on red meat.
C. P. M O O R E

P resid en t
F irst N ational Bank o f A berdeen
A b e rd e e n South D akota

,

H E D akota M idlands served by our bank and
branches extends approxim ately 250 miles east and
west and 100 miles north and south. This area has wit­
nessed a rapid grow th in the cattle industry the past few
years, mainly in cow-calf operations.
We norm ally produce an abundance of feed, p articu­
larly roughage, and this year is no exception. R ange and
pasture conditions look good as a result of m oisture and
fairly cool w eather.
The corn crop is com ing on very well. A bout 10 days
of h ot w eather benefited this crop tremendously. M any
farm ers are expecting yields of 75-100 bushels which is
good com yield for this area.
Small grain harvest is m ostly o u t of the way with an
average to above-average crop of spring w heat and an
average crop of barley, oats and rye. Im proved prices of
wheat, together with cattle prices approxim ate 25% in­
crease in agricultural incom e over a year ago. It is hoped

T

that this trend will continue as agriculture will be under
heavy pressure to produce food and fiber on an increasing
basis in the years to come.
Feeder cattle and calves are in strong dem and. Y ear­
lings have dropped slightly due to an ease in the fat cattle
m arket recently. However, they are bringing 39-40 cents,
steer calves around 48 cents and heifers 43-44 cents. We
may not see much of a price change in the next 60-120
days on feeder cattle since there is an abundance of feed
in m ost parts of the country. Calves should hold strong
but there m ay be a trend for the heavier cattle to drop
slightly until the fat m arket recovers. T he fat m arket should
bottom out when the 1971 calves are m arketed as fat cattle.
A n im provem ent in the price of fat cattle should happen
in the late fall or early winter of 1972 and could certainly
extend through 1973.
We will see a continued strong consum er dem and for
beef for several reasons. First, we are a m eat-eating nation.
Then, too, our children have been oriented tow ard beef
products and our fast-food outlets have greatly expanded
over a few years ago. All of this certainly stimulates beef
consum ption.
The consum er is still being treated fairly at the m ar­
ket. T he im portant thing is for us to tell the story as farm ­
ers, ranchers and business people with an interest in agri­
culture.

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Circle No. 25 For More Information
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58
Federal Reserve Bank of St. Louis

CORPORATE NEWS . . .
(C ontinued from page 26)
A m erica on January 1 of this year to
form the Securities Industry A ssocia­
tion under the direction of Dr. K en­
dall.
H e also served as vice president and
econom ist of the New Y ork Stock E x­
change, 1964-1967, and as an econo­
mist of the U nited States Savings and
L oan League, 1958-1964.

MoAmCo Corporation, Minneapo­
lis: T he com pany’s largest mobile
hom e park, M obile A m ericana in St.
Petersburg, Fla., has been sold for
more than $3 million, according to F.
Paul H argarten, chairm an.
P urchaser of the p ark is M ulti Vest
Real Estate, Inc., Southfield, Mich.
M oA m Co will continue to m anage the
park under a three-year, leaseback
agreement.

The North Central Companies, St.
Paul: T hom as S. H artzell was elected
to the board of directors according to
an announcem ent by T heodore San­
born, president and chairm an.
M r. H artzell is chairm an of the
board of H artzell Industries, a diversi­
fied m anufacturing com pany. H e is a
graduate of the U niversity of M inneso­
ta.
N o rth w e ste rn B a n ker

*

No\ty get Dr. Beryl Sprinkels
current thinking to guide your
bank’s trust investments.
Even banks who subscribe to other
investm ent advisory services find tre­
mendous value in the m onetarist views
of Dr. Beryl W. Sprinkel, Senior V.P. and
Economist at the Harris.
T hat’s why so m any banks, large and
small, are subscribing to the Harris
Institutional Investm ent Service.
Through IIS you receive digests of the
financial and economic research prepared by Dr. Sprinkel and his
staff to guide our own trust departm ent in m anaging $5.3 billion
worth of trust assets.
You get regular, easy-to-read reports-com plete with Buy/Sell/Hold
recom mendations—on our list of 180 quality common stocks. You
can get as crisp or elaborate a review as you wish, depending on
whether you subscribe to our Mini-Service, Common Stock Service,
Abbreviated Service or Full Service. The cost of IIS is low, and
payment can be arranged on either a fee or balance basis.
Ultimately, all decisions are yours, but this kind of expert guidance
can take a big load off your shoulders. To set up an IIS presentation,
contact your Harris banker, or call Jerry Jurs at 312/461-7612 or
Fred Young at 312/461-7525. Or, write for a copy of our new
IIS booklet.

HARRIS BANK p i

Harris Trust and Savings Bank f t f ' -f- -g

111 West Monroe Street, Chicago, Illinois 60690. Organized as N. W. Harris & Co , 1882, Member F.D.I.C. Federal Reserve System. ~ "


Se p te m b e r, 1 9 7 2
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—......

59

L E F T — The senior class of the Graduate School of Banking at the University of Wisconsin has elected its 0ff|Ce^ - ™ ey ,arKe- (!‘ ,to
r.) Shirley Ryan, cashier, Bank of La Grange Park, lll.-secretary; David L. Nagel, exec v p, and cashier, Benton B & T, Urbandale,
la -pres ■ C Larry Brandt, asst. v. p., Central Trust, Cincinnati, Ohio-v. p.; Ardith A. Sh.delen, cashier and a sst trust officer Ex­
change Bank, Warren, Ind.-treasurer. RIGHT— Class of 1973 officers are: (I. to r.) Roland D. Miles, cashier, City Natl., Rockford,
lll.-v p.; Phyllis A. Johnson, Edina, Minn.-treasurer; Janet R. Ford, asst, v. p. Mechanicsville T & S, Mechamcsville, la.-secretary,
and Dan W. Kussart, v. p.. 1st Natl., E. St. Louis, III.-pres.

W isconsin B an kin g School G ra d u a tes 441

A

L L E N P. STU LTS, Chicago, pres­
ident of the A m erican Bankers
A ssociation, delivered the m ajor ad­
dress at the 2 6th annual com m ence­
m ent exercises of the G raduate School
of Banking on the M adison cam pus
of the University of W isconsin recent­
ly-

Diplom as were presented to 441
graduates from 31 states and two fo r­
eign lands by O. E. A nderson, C olum ­
bus, executive vice president of the

Officers of the class of 1974 are: (I. to r.)
front row: Donald J. Grevengood, assist­
ant V. P., Security B & T, Allen Park,
Mich.— treasurer; Doris M. Powell, loan
officer, Citizens Natl., McConnelsville,
Ohio— v. p.; (back row:) Gary A. Her­
mann, V. P., 1st Natl., Mason City, la.—
president; Rosemary Orth, investment of­
ficer, 1st Wis., Milwaukee— secretary.

60
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Federal Reserve Bank of St. Louis

O hio Bankers A ssociation; E. A.
G aum nitz, retired dean of the UW M adison School of Business, and Bry­
an K. K oontz, M adison, executive di­
rector of the W isconsin Bankers A sso­
ciation.
A ttendance at three two-week sum ­
m er sessions and com pletion of com ­
prehensive banking problem s are re­
quired for graduation. Sponsored by
the C entral States Conference, the
school held its first session in 1945.
A gift will be presented to the U ni­
versity by D onald L. Nagel, U rbandale, Iowa, president of the graduating
class.

Northern Trust Forms
f arm Management Unit

N o rtru st C orporation, parent hold­
ing com pany of T he N orthern T rust
Com pany, Chicago, has announced the
form ation of a wholly owned subsidi­
ary, N ortrust F arm M anagem ent, Inc.,
to m anage farm s held in trust by The
N orthern T ru st C om pany and Security
T rust Com pany of M iam i, F lorida. Se­
curity T rust C om pany was acquired by
N ortrust C orporation last D ecem ber.
E dw ard Byron Smith, chairm an of
the board of N ortrust C orporation and
T he N orthern T rust Com pany, com ­
m ented, “The new subsidiary will have
an office in T he N orthern T ru st C om ­
pany building in Chicago and is open­
ing an office in M em phis, Tennessee,
Fed of San Francisco
to serve the M iddle South. T he farm
m anagem ent division of The N orthern
Names New President
John J. Balles, senior vice president T rust C om pany has been m anaging
of M ellon N ational Bank & T rust Co., farm s for individuals and corporations
Pittsburgh, was nam ed president of the for over 50 years and now m anages
F ederal R eserve Bank of San F rancis­ more than 150,000 acres of farm land.
co. He succeeds Eliot J. Swan, who This subsidiary will help us to continue
to m eet the farm m anagem ent needs
retired.
M r. Balles will assum e his new d u ­ of our trust custom ers.”
V an R. G athany, senior vice presi­
ties this fall. H e currently is in charge
of M ellon N ational B ank’s Econom ic dent of T he N orthern T rust C om pany,
and C orporate Planning Office, which will serve as president of the subsidi­
has responsibility for analysis of busi­ ary, while Jam es M. C onner will be
ness and financial developm ents, m an ­ vice president and general m anager.
agem ent science, long-range planning, M ax W. Evans, w ho will m anage the
legislative relations, and liaison with M em phis office, will serve as vice
bank supervisory agencies, according to president. Mr. C onner and M r. Evans
the F ederal Reserve Bank. Mr. Balles are officers in T he N o rthern T rust
farm m anagem ent division.
is 51 years old.
N o rth w e s t e rn Banke r

OFFICIAL APPROVAL— The American Bankers Association’s first national Correspondent
Banking Division Seminar, to be held Oct. 29-31 at the Roosevelt Hotel in New Orleans,
gets final brochure approval from key division banking officials. Seated (from left) are
Victor H. Winfrey, division vice chairman; John F. McGillicuddy, division chairman;
James E. Brown, government relations chairman; and Charles T. Fisher, communica­
tions chairman. Standing (from left) are Hugh L. McColl Jr., research chairman; Eugene
Swearingen, education chairman and chairman of the seminar; Willis Alexander, ABA
executive vice president; and John S. Clark, ABA Correspondent Banking Division direc­
tor.

P lan C orrespon den t S em in a r

A

D V A N C E program inform ation
for the 1st A nnual N ational C o r­
respondent Sem inar to be held at the
Roosevelt H otel in New O rleans, O c­
tober 29-31, has been announced by
Eugene Swearingen, president, N a­
tional B ank of Tulsa, and chairm an
of the Seminar.
T he C orrespondent Banking Divi­
sion of the A m erican B ankers A ssocia­
tion was form ed in O ctober, 1971.
John F . M cG illicuddy, president, M an­
ufacturers H anover T ru st C om pany is
chairm an of a 20-m an executive com ­
m ittee. M em bers of the com m ittee
from the N o r t h w e s t e r n B a n k e r area
include: Jam es E. Brown, senior vice
president, M ercantile T ru st Com pany,
St. Louis; F. Phillips Giltner, president,
F irst N ational B ank, O m aha; C. Paul
Lindholm , vice president, N orthw estern
N ational Bank, M inneapolis; M arvin F.
Ownes, senior vice president, T he C en­
tral B ank and T ru st C om pany, Denver,
D ale C. Smith, executive vice presi­
dent, C entral N ational B ank and T rust
Com pany, Des M oines, and R obert C.
Suhr, executive vice president, C on­
tinental Illinois N ational Bank and
T rust Com pany, Chicago.
Digitized
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e mFRASER
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Federal Reserve Bank of St. Louis

A welcome reception will be held
on Sunday evening, O ctober 29, begin­
ning at 6:00 P.M.
T he first general session will start
at 9:00 A.M . M onday, O ctober 30,
when C hairm an M cG illicuddy presents
his address. Talks by C hairm an Sw ear­
ingen and Dr. Paul S. N adler will fol­
low.
D elegates will have an opportunity
to attend a series of concurrent w ork­
shops on a wide variety of subject cov­
ering aspects of profitability, the F ed ­
eral Reserve paym ent system, service
innovations and trends, financing bank
and holding com pany capital needs,
governm ental relations, and im plica­
tions of current paym ents systems de­
velopm ents. Consulting sessions will
follow.
T he second general session will start
at 10:00 A .M ., Tuesday, O ctober 31,
and the sem inar will close with a
luncheon and a talk by J. Lewis
Powell, noted author, lecturer and
m anagem ent consultant.

Chicago C om panies R eport
P rogress T ow ard M erger
A m erican N ational C orporation and

W alter E. H eller International C orpo­
ration reported progress A ugust 14 in
their discussions tow ard a possible
com bination of the two companies.
H eller President and Chief Execu­
tive Officer F ranklin A. Cole and
A m erican N ational C hairm an Allen P.
Stults stated that according to current
negotiations, the plan would involve
cash paym ent by H eller equivalent to
$48 per A m erican N ational share for
all the assets of A m erican N ational
C orporation.
They said this proposed price re­
places figures reported July 13 which
referred to a price 35 to 40 per cent
above the July 12 m arket price of
$32.50 per A m erican N ational share.
As of June 30, 1972, A m erican N a­
tional C orporation had 2,197,949
common shares outstanding, plus op­
tions outstanding to acquire additional
shares.
Mr. Cole and M r. Stults said that
application to the Federal Reserve
Board is contem plated shortly. When
that approval is obtained, the plan will
be subm itted to the boards of directors
and stockholders of both companies
for action. They added that the timing
of these various steps is not exact, but
it is estim ated that a m inim um of three
m onths will be required.
H eller International is a Chicagobased, diversified com m ercial finance
and factoring firm with w orld-wide in­
terests. A m erican N ational is the p ar­
ent of the A m erican N ational Bank
and T ru st C om pany of Chicago.

FOUR ADVANTAGES . . .
{C ontinued from page 4 9 )
pounds across the board the first year
by breeding Simmental.
O ver the years, a 30^ pound in­
crease is w orth $30 a head on a com ­
m ercial basis.
T here is no doubt in the progressive
cattlem an’s m ind that the Simmental
has superior genetics to offer, for it has
been perform ance tested for 150 years.
The A ssociation publishes a N ation­
al Simmental Sire Sum m ary, which this
year includes weaning and yearling
data on 13 purebred Simmental sires.
N ext year it should contain nine eco­
nom ic genetic production traits. We
think the A m erican Simmental A ssoci­
ation is beginning to influence the U.S.
beef industry. We think that the p ro ­
gressive breeder of today is breeding
Sim m ental, and we hope that the p ro ­
gressive banker will back the Sim m en­
tal breeders. — End
61

l e f t — R. Crosby Kemper, Jr., chrnn., and Jerry Scott, pres., City Natl. B&T, Kansas City, pose for first picture taken of scale mod­
el of the bank’s new financial center. RIGHT— Ben Schifman, second from right, financial v.p., Kansas City Star, moderated a pan­
el that included these three City Natl, executives (left to right): Bill Bolt, chrnn. of exec, comm., credit admin.; Don Thompson,
sr. v.p., correspondent bank division, and Byron Thompson, exec, v.p., investment division.

A n n ou n ces $15 M illion B u ild in g P rogram
B y BEN HALLER, JR.
E d ito r

P

LANS for a $15 million, m ulti­
story new building to house the
City N ational B ank & T rust C om pany
of Kansas City were announced last
m onth by R. Crosby K em per, Jr.,
chairm an of the board, at City N a ­
tional’s annual C orrespondent Banks &
C orporate T reasurers Conference. A p ­
proxim ately 1,100 bankers, business­
m en and wives attended the conference.
M r. K em per opened the meeting
with his announcem ent of the new
building and showed several slides to
illustrate the design and location of the
building in the h eart of downtown K an­
sas City. The new structure will have a
minimum of 5 0 0 ,0 0 0 square feet of
office space. T he architect’s rendering
shows twin triangular towers resting on
a block-long rectangular base of five
floors.
The two triangular buildings rise
from opposite ends of the rectangular
section, giving a wide am ount of open
space between the two sections. Mr.
K em per said the architect’s purpose is
to lend openness to the downtown area
and have this special design com ple­
m ent the open areas of plaza landscap­
ing th at will be adjacent to the build­
ing. U nderground parking for several
hundred cars will also be p art of the
construction.
T he central p art of the five story
base building will have an open ground
floor that provides a moving stairway
running diagonally from the street on
one side to the street on the far side


62
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Federal Reserve Bank of St. Louis

of the building. This moving stairway
will perm it the public to move through
a covered area up the rather steep in­
cline betw een the two streets, which is
a 20 foot fall in one block wide. This
arcade will be lined with shops and
offices.
M r. K em per said dem olition of ex­
isting buildings was to begin the fourth
week in August. The project is p art of
an overall plan of rehabilitation and
beautification of downtown Kansas
City and is expected to be completed
sometime in 1974.
City N ational President Jerry Scott
presided at the conference and intro­
duced the guest speaker, Edw in New­
m an, well-known N BC news corre­
spondent, who had flown to Kansas
City from M iami where he had been
involved in preparations for coverage
of the R epublican national convention.
M r. N ew m an gave an excellent view
into the factors making up a broadcast
new sm an’s job, explaining the m any
things that m ust be taken into con­
sideration for each broadcast to deter­
mine if the news is being told accurate­
ly, fairly and with good taste and judg­
ment.
H e was followed by a panel discus­
sion m oderated by Ben Schifman, fi­
nancial vice president and financial ed­
itor of the Kansas City Star. Panelists,
all from City N ational Bank, were: Bill
Bolt, chairm an of the executive com ­
m ittee, credit adm inistration; Byron
Thom pson, executive vice president,
investm ent division; Don Thom pson,
senior vice president, correspondent
bank division; Dan Spencer, senior

vice president, operations division;
D on W illiams, senior vice president,
trust division; Jim W ashburne, vice
president, international division, and
H arold Yoeom , vice president, M aster
Charge, credit card division.
O ther questions relating to loan de­
m and, finding and training com petent
officer personnel, eliminating conflicts
in trust departm ent decisions, and the
increase in bad loan writeoffs also were
discussed briefly.
All registrants were guests of City
N ational for luncheon and dinner on
Saturday, and the dinner was followed
by an excellent stage show. Tony DiPardo’s well-known Kansas City o r­
chestra provided music for dinner
dancing, as well as for the show. Ray
Eberle, an old favorite from the origi­
nal G lenn M iller orchestra, vocalized
many of the old tunes for the receptive
crowd. Paula Kelly and the M odernaires provided further harm onizing and
they were joined by Ray Eberle on sev­
eral tunes. Two days before the con­
ference was to start, the originally
scheduled com edian cancelled his con­
tracted appearance. However, the City
N ational cam e up a winner with Norm
Crosby, the fast-talking, word-twisting
com edian who is well-known to TV
audiences for his appearances on the
Johnny C arson “T onight” Show and
on the D ean M artin Show as Dino’s
barber. W ith only 24-hour notice he
appeared on-stage in K ansas City and
wowed an appreciative audience.
The bankers and their wives were
guests of City N ational at a Sunday
Brunch, after which everyone ad­
journed to the baseball park for the
game bewteen the Kansas City Royals
and the M ilwaukee Brewers.— End
Circle No. 26 For More Information —>

Stockholder Joe
got a tip today.
Now he’ll get rich
wiping you out.
Joe owns a few shares in your bank.
And today someone leaked a juicy
bit of information about you; a little
goof you made in your capacity as
a director and officer. It wound up
costing the bank money.
When the waitress gets back with
Jo e ’s change, he’ll call his lawyer
to set up one of those “failure-touse-good-faith-and-due-care” suits
against you.
Of course, if you’d attended every
m eeting, read every report and
d o u b le -c h e c k e d e ve ry m ove of
e ve ry e m p lo ye e , the go o f never
would have happened. And you
never would have gotten home to
see your family, either.
We had gu y s like Jo e in mind
when we developed our Directors’
& O fficers’ Liability Insurance. One
policy protects both the bank and
your own personal estate against
liabilities arising from wrongful acts
in your capacity as a director or
officer. We look out for the big guys.
Better have your agent call us.
Before someone’s lawyer calls you.
Interstate

National

Gbm panies
175 W .J a c k s o n Blvd.
C hicago, III. 60604
312/427-4737


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Federal Reserve Bank of St. Louis

Regulation changes pose many questions.
For accurate, informed answers...

count on M ercantile
in St. Louis
• W h a t w ill be y o u r re d u c tio n in
re s e rv e re q u ire m e n ts ?
• H ow can you collect y o u r checks f a s te r ?
• H ow w ill y o u r e a r n in g s be affected ?
• S hould you c h a n g e y o u r cash l e tte r
s o rt b ecau se o f th e e x p a n d in g
S t. L ouis R eg io n al C heck P ro c e ssin g
C e n te r?
(A sk us fo r a cash l e t t e r a n a ly sis.)

MERCANTILE
TRU ST
C O M P A N Y Ir r r

Phone 3 1 4 /2 3 1 -3 5 0 0

Let your Man from M erc tell you how banking regulation ch an ges w ill affect you. In the
fast-m oving business of banking today your M an from M erc is more im portant than ever.
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N o rth w e s t e rn han ke r

the bank’s facilities, w ith D iebold
pneum atic tube units being installed.
F ree gifts and refreshm ents were
given to custom ers and friends viewing
the new facilities, and clowns were on
hand to pass out helium balloons to
children. H ostesses dem onstrated the
new drive-in units to custom ers.

Illinois
NEWS
JOHN F. McKNIGHT Presiden*
ROBERT C.

SCHRIMPLE

O ak Park

Exec. V. P. Chicago

Niles B ank Nam es C ashier
The election of R ichard K. Jeffery as
cashier at the Golf M ill State Bank,
Niles, was announced by President
R obert A. Sharpe.
Mr. Jeffrey was form erly employed
by The W innetka B ank as assistant
cashier. Prior to that he was an as­
sistant cashier with O ’H are Interna­
tional Bank, Chicago.
H e is a 1968 graduate of O klahom a
State University with a finance degree,
and is a m em ber of the A m erican In ­
stitute of Banking.

C hanges at R o ck fo rd
R obert P. Kline, president of the Il­
linois N ational B ank and T ru st Co.,
R ockford, has announced several p ro ­
m otions of personnel at the bank.
A rnold E. C arlson and R ichard D.
V arble w ere nam ed vice presidents of
the bank. M r. C arlson also serves the
bank as controller, and M r. V arble,
form erly assistant vice president,
works in the banking departm ent.
N am ed assistant vice presidents
w ere John T. S chuttler in the banking
departm ent, and K enneth S. Stokes
and J. R obert Collen in the consum er
credit departm ent.
In addition, David A. Said was
nam ed m anager in the consum er credit
departm ent, and R ichard W. F erro was
appointed assistant cashier in the
banking departm ent.

New Drive-In O pens at
F irst o f M undelein
F irst N ational Bank of M undelein
recently h ad a “V isitors D ay” so th at
local citizens could inspect the b ank’s
new drive-in facilities. N early 1,000
people attended the event.
R ob ert A. Sharpe, president of the
bank, was assisted by board m em bers
at a ribbon cutting cerem ony. Bank
hostesses assisted custom ers in o p ­
erating the pneum atic tube drive-in
units th at were installed. B ank em ploy­
ees served refreshm ents to visitors in
a reception area th a t was set up in the
bank’s parking lot.

New B ank O pened in
G lendale H eights
A grand opening was recently held
in G lendale H eights fo r the com m uni­
ty’s first bank, the F irst Security Bank
of G lendale H eights.
M ore th an 300 new checking and
savings accounts w ere opened during
the grand opening, according to D avid
L. Brew er, vice president and cashier.
H e com m ented on the enthusiasm of
local residents, noting th at nearly 500
area residents had invested $750,000
to start the bank.
S e pfor
tem
b e r , 1972
Digitized
FRASER
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Federal Reserve Bank of St. Louis

WILLIAM KIRCHOFF, Glendale Heights vil­
lage manager, cuts a ribbon of souvenir
checks to officially open the First Security
Bank of Glendale Heights. Taking part in
the ceremony are, from left, Melvin R.
Hinterlong, assistant cashier, David L.
Brewer, vice president and cashier, Mr.
Kirchoff, and Jeffrey Napier, a bank di­
rector.

A ribbon-cutting cerem ony was held
to start the open house, with William
Kirchoff, G lendale H eights village
m anager, cutting a 14-foot ribbon
com posed
of
oversized
souvenir
checks, E ach check was w orth 10^ if
redeem ed at the bank.

N am ed W orth Cashier
W ayne H . B randenburg has been
nam ed cashier of the F irst State Bank
of W orth. The announcem ent was
m ade by Russell
D. Boyer, execu­
tive vice presi­
dent.
M r. B randen­
burg is a veteran
C h i c a g o-area
banker, and is a
graduate of the
A m erican
Insti­
tute of Banking.
H e is also an in­
structor in bank operations at the
M oraine Valley Junior College.

O pen Drive-In Facility
T he F irst N ational B ank of M unde­
lein held a “Visitors D ay” recently to
celebrate the opening of the bank’s ex­
panded drive-in facilities.
F o u r drive-in lanes were added to

Jo in s M oline Bank
R obert T. K napp has been nam ed
executive vice president of the U ptow n
N ational B ank in
Moline.
M r. K napp has
served as treas­
u r e r of W o r ld
Wide M eats, Inc.,
D e n is o n , I o w a .
P r e v io u s ly , h e
had been presi­
dent of B etten­
dorf B ank & T rust
R. T. KN APP
C om pany and la­
ter president of N orthw est B ank and
T rust Com pany, D avenport. H e started
his banking career in Denison and
served as cashier of a M itchell, South
D akota, bank before moving to the
D avenport-B ettendorf area.

T o E stablish B ranches
The N orthw est N ational B ank of
Chicago and the W auconda N ational
B ank have received approval of appli­
cations for branches.

T itle Is Changed
A certificate has been issued to The
F irst Lake C ounty N ational B ank at
Libertyville to change its nam e to the
F irst N ational Bank of Libertyville.

To Relocate Head Offices
The following banks have received
approval to relocate their head offices:
T he F irst N ational Bank in Chicago
H eights, T he N ational R epublic Bank
of Chicago and the F irst N ational
Bank and T rust Company of Pekin.
65

Subu rban Hank F inances a Hit o f the P ast
H E F irst N ational Bank of N o rth ­
brook has arranged to finance a
fiberglass replica of the classic M odel A
Ford.
T he 1972 M odel A , prom oted by
The Steven R and C orporation, a
N orthbrook direct m arketing com ­
pany, was designed for those w ith a
longing for the p ast but are caught up
in the reality of the present. P art of this
car’s reality is th e price tag, $7,000,
so F irst N ational has agreed to finance
the car as they w ould any other new
auto.
“W e’ll treat the 1972 M odel A just
as if it were a new car,” said J im Sher­
idan, bank vice president, “ and the
ow ner can spread his paym ents over
a 36-m onth period, if he likes."
“T he 1972 M odel A resem bles the
old 1928-1931 M odel A but th a t’s
where the sim ilarity ends,” states Paul
R efkin, Steven R and president. “This
car has a cruising speed of 70 m .p.h.
and causes quite a few stares on super­
highways.”
T he body is a single piece of m olded
fiberglass, the V-8 engine, transm ission
and other drivetrain and suspension
com ponents are all 1972 F o rd . T he
M odel A has been on display at the
b ank’s offices, located at 1300 M ea­
dow Drive in the N orth Shore suburb.

T

Kickoff Luncheon for
Operation Identification
E lm hurst com m unity and business
leaders gathered recently for a kickoff
luncheon for the O peration Identifica­
tion program being sponsored by the
Bank of E lm hurst.
Bank President W illiam T. Giova
told the group th at “its success o r fail­
ure depends entirely on its usage by
the
area
resi­
dents.” H e noted
th at the
bank
“will welcome all
co-sponsors f o r
O peration Identi­
fication. W e want
this to be a true
com m unity effort
and would appre­
ciate your ad­
W. T. G IO VA
vice.”
U nder the nationally accepted O p ­
eration Identification program , hom eowners and apartm ent dwellers engrave
valuable m erchandise in their hom e
with their driver’s license num ber and
display decals on outside doors and
windows to indicate to would-be b u r­

Illinois N e w s
66
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Federal Reserve Bank of St. Louis

glars th at the m erchandise is identi­
fied.
T he B ank of E lm hurst has a supply
of electric engravers in the bank lobby
to loan to the public. T he bank will
also provide brochures explaining the
program and decals for persons who
have m arked their m erchandise.
O peration Identification is being
used throughout the country and has
had great success in cutting down resi­
dential burglaries.

First o f Evanston
Names Vice President
T he election of Donald W. Bruechert as vice president and investment
officer at the F irst N ational Bank &
T ru st C om pany of E vanston has been
announced.
Mr. B ruechert was form erly a senior
associate with Sanderhoff and A ssoci­
ates. Prior to that he was an account
m anager w ith Brown Brothers, H arriman and Com pany and a senior invest­
m ent advisor with C ontinental Illinois
N ational Bank, Chicago.
H e is a native of W isconsin and re­
ceived a B.B.A. degree in finance from
the U niversity of W isconsin.

Pullman Names Director
C hairm an D onald O ’Toole of the
Pullm an B ank and T ru st Com pany has
announced the recent election of F ran k
R . M ilnor as a director of the bank.
H e is treasurer of International H ar­
vester Com pany.
M r. M ilnor has w orked for In tern a­
tional H arvester since he was a student
at the U niversity of Pennsylvania. He
graduated from Pennsylvania’s W har­
ton School of C om m erce in 1937, and
subsequently moved through the ranks
at International H arvester until he was
nam ed treasurer in 1969.
H e is a m em ber of the board of gov­
ernors of the city of Chicago’s p lan ­
ning com m ittee and transportation
com m ittee of the M etropolitan H ous­
ing and Planning Council. H e also
serves as a director and m em ber of the
finance and budget com m ittee and the
audit review sub-com m ittee of the Il­
linois State C ham ber of Com m erce.

Harvey Bank Stock Split
T he board of directors of the F irst
State Bank of H arvey has voted to split
the stock giving each shareholder five
shares for one share now held, accord­
ing to John E. Jansen, president.
A special stockholders m eeting to

approve the split has been called for
Septem ber 22. T he bank is preparing
to celebrate its 10th anniversary later
this year.

Bank of Hinsdale
Names Carlson VP
The election of Stanley I. Carlson as
vice president and cashier at the Bank
of H insdale has been announced by
bank officials.
M r. C a r l s o n
has
11 years
banking
experi­
ence. He joined
Bank of H insdale
in 1970, and is a
graduate of the
University of Chi­
cago.
It was also anS. I. CARLSON
,
.
n o u n c e d that
Gerald P. Czuba was nam ed assistant
vice president. A graduate of N orth­
western University, he joined the bank
in 1968.
Tw o other prom otions were also
made. W arren I. Tisch was appointed
assistant cashier, and M rs. V era V.
K avana was nam ed assistant corporate
secretary. M r. Tisch joined the bank
a year ago as a trainee, and Mrs. K av­
ana has been w ith the bank since it
opened in 1967.

Mount Greenwood
Appoints Two
The appointm ent of two new officers
at the M ount Greenwood Bank has
been announced by Vice Chairm an A l­
bert A. Payne and
President C 1 a rence Yonker.
Jam es T. Shee­
han has b e e n
elected
assistant
vice president. H e
was formerly an
a s s i s t a n t vice
president in the
com m ercial loan
departm ent at the
M ercantile N ational Bank of Indiana.
A graduate of Spring Hill College in
M obile, Ala., he has attended the U ni­
versity of Chicago G raduate School of
Business.
Tim othy T. O ’C onnor was nam ed
installm ent loan m anager, bringing 17
years of banking and credit experience
to the M ount G reenw ood Bank. He
was previously loan m anager at South
Shore N ational B ank and is a m em ber
of the Installm ent Bankers Associa­
tion.
N o rth w e ste rn B a n ke r

This week you could get foreign monies
for one of your traveling-overseas custom ers...
Next week you could help that local bootery
import shoes directly from Paris or Italy.
The week after th at...

Well, any week, any day at all, there’s
an entire American National
International Banking Division, with
a Branch in London and a network of
over 1600 foreign correspondent bank
connections, ready to act as a branch
of your bank—developing foreign
markets or finding foreign sources for
your customers—providing letters of
credit, or through our overseas offices
and foreign connections, arranging
financing or a business meeting, or even
an all-important social introduction.
There’s a world of opportunity out
there. Maybe all the businessmen of
your community need, is a word from
Ask Tom Robinson or Roy W est to tell you how
you. Talk it over with us.
our International Banking Division can serve
We think we can help.
you and your customers.

The Idea Bank
American National Bank
and Trust Company of Chicago
LaSalle a t Washington 60690
Phone (312) 661-5000 Member FD IC

S e p t e m b e r , 1972

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

67

Leonard J. Schrew e

W h e n y o u ’re th in k in g a b o u t a c o r r e s p o n d e n t b a n k ,
th in k a b o u t th e m an y o u ’ll b e w o rk in g w ith .
We have all th e technical know-how. m achin ery, and
c o m p u te rs needed to make us an excellent c o rre s p o n d e n t
bank.
B ut th e single most im p o r ta n t pa rt of o u r e n tire c o r ­
re s p on den t program is th e C o rre s p o n d e n t R e p re s e n ta tiv e
you w o r k with.

First National Bank in StLouis
314/4212000 St. Louis, MO 63101 Member FDIC


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

He's the m e m b e r of o u r staff w h o becomes a m e m b e r
o f y o u r s t a f f . T h e v i ta l link.
A nd F irst N a tio n a l’s R e p re s e n ta tiv e coverin g you r area
is the best in the business.
This man. and his capabilities, are an excellent reason
w e ’re the c o rre s p o n d e n t bank you should be th in k in g about.

First Union
■ Group

7

Richard L. Curtis, president of
Michigan Avenue National Bank of
Chicago, has announced that Frank H.
M y n a r d has
joined the bank as
vice president.
M y n a r d was
formerly a vice
president and di­
vision h e a d at
Central National
Bank of Chicago.
A graduate of the
F. H. MYNARD
University of Illinois, he also at­
tended the Stonier Graduate School of
Banking. He began his banking career
in 1963 with Live Stock National Bank
of Chicago.

P e k in P r o m o tio n
William E. Troutman, president of
the First National Bank and Trust
Company, Pekin, has announced the
election of Millie Farris as assistant
cashier.
Mrs. Farris has been with the bank
since she graduated from high school
in 1954. She headed the bank’s savings
department for 14 years, and for the
past year has worked in the auditing
department.

>

William D. O’Hearn was appointed
loan operations officer. He was previ­
ously assistant vice president for mar­
keting at Beverly Bancorporation. A
graduate of the University of Notre
Dame, he received a masters degree
in business from Loyola University,
Chicago.
Edward J. Maciejewski, formerly as­
sistant vice president at the Beverly
Bank, was named assistant cashier. He
assumes responsibility for the teller de­
partment and other operational areas.

J o in s Staff o f
M ich igan A ve. N ation al

P r o m o tio n s A n n o u n c e d
Oak Park Trust and Savings Bank
has announced the promotion of Irene
S. Keith to assistant vice president and
Patricia C. Crowe to trust officer. E.
Jane Ditto has been appointed assist­
ant cashier.
Miss Keith is head of personnel
training and has been with the bank
since 1967. She was recently elected
president of the Association of Chi­
cago Bank Women, and served as sec­
retary-treasurer of the Illinois Group,
National Association of Bank Women,
during the past year.
Mrs. Crowe, who also joined the
bank in 1967, is head of trust opera­
tions. She is also a member of the Na­
tional Association of Bank Women.
Mrs. Ditto works in the new ac­
counts department.

R o se lle B an k ers on TV
Roselle State Bank and Trust Com­
pany officials were recently inter­
viewed on the “Sunday in Chicago”
television program. The two-hour pro­
gram was entirely devoted to the Roselle/Schaumburg area.
DigitizedSfor
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em ber, 1972
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Federal Reserve Bank of St. Louis

A m a lg a m a ted N am es
A lex a n d er A gu iar
"SUNDAY in Chicago” featured (I. to r.)
Eugene C. Ernsting, president; E. W.
Gieseke, director; Elmer H. Franzen, cha ir­
man; Bob Hale, host of the show.

Representing the bank were Elmer
H. Franzen, chairman of the board
of directors, Edwin W. Gieseke, direc­
tor and Eugene C. Ernsting, president.
Mr. Franzen reminisced about the ear­
ly days in Roselle when the settlers
were mostly of German descent and
the population was less than 200, in­
terest rates at 3% were hand figured
and the railroad was new.
Mr. Gieseke recalled selling the
farm for $150 per acre. Similar prop­
erty is now being sold for about 400
times that amount, he said. Mr.
Gieseke noted that the many farm and
home loans made by the bank then
were important to the early develop­
ment of the area.
When asked what he would most
like to see in the future of the bank,
Mr. Franzen replied: “safe, sound and
solvent as in the ’30’s.” Mr. Franzen
recalled the “run” on the bank follow­
ing the moratorium and how the bank
was successful in meeting this financial
challenge. In the entire Du Page Coun­
ty, only two banks other than the Ro­
selle State Bank opened their doors fol­
lowing the moratorium.
Mr. Franzen also stressed his faith
and confidence in the present directors
and officers of the bank and predicted
continued growth for the future
through expanded facilities and serv­
ices for its customers.

F ord City B an k
John C. Wheeler, president of Ford
City Bank, Chicago, has announced re­
cent appointments to the bank’s staff.
Jack F. Ehli was named business de­
velopment officer. He was previously
associated with J. C. Penney Co. as
manager of the Ford City Store.

H. Alexander Aguiar has been
named assistant to the president of the
Amalgamated Trust and Savings Bank,
Evanston. The an­
nouncement was
made by Eugene
P. Heytow, presi­
dent of the bank.
Mr. Aguiar is
a native of Quito,
Ecuador, and re­
ceived his bache­
lors degree from
t he M i l i t a r y
H. A. AGUIAR
Academy of Ec­
uador and a master’s degree from
Central University of Ecuador. He is
currently working on his doctorate at
Ohio Christian University, Columbus,
Ohio.
Mr. Aguiar, who joined the bank
in 1971 as a marketing officer, is deep­
ly involved in Latin activities in the
Chicago area. He holds the Chicago
Jaycees William Saltiel Award for
community involvement, along with
the President’s Award, and is president
of the Hispano-American Jaycees, and
a member of the Latin Economic De­
velopment Corporation.

A ssistant C ashier N am ed
Ted J. Piech has been appointed as­
sistant cashier of the Pullman Bank
and Trust Company, Chicago, accord­
ing to Robert H. Costello, president.
Mr. Piech has been with Pullman
since 1961, when he started as a teller
trainee. He was named head teller in
1971 and was recently named pro­
cashier.

N am e T w o O fficers
It was announced that Angelo Mazzoni has been named assistant vice
president at the South Central Bank
and Trust Company, Chicago. It was
also announced that Thomas P. Nichol
was appointed customer service officer.
Illinois News

69

The Document Processing Divisiony-Continental Bank.
Technically trained personnel and high-speed processing
equipment handle well over 1 million checks every 24 hours.

WJ0H


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

W o r k in g a ll n ig h t
h e lp s u s g iv e y o u fa s te s t
a v a ila b ility o f fu n d s .
But there’s a lot
more than that to
Continental Bank’s unbeatable
check clearing service.
Continental Bank is
in the right place. . .
Located in Chicago, the heart of
America, Continental Bank is within
easy reach of 33 Federal Reserve
cities.
Served by O’H are International
A irport, C ontinental can “direct
send” for immediate availability, as
well as provide one-day availability
on more points than banks in any
other city in the United States.
With the right services. . .
BANK MESSENGERS pick up mail
at the Post Office around the clock
every day, including Sundays and
holidays, making collections every
20 minutes during peak periods.
Special couriers intercept Air Mail
Field Service envelopes at O’Hare
A irport and speed them in to the
processing facility up to seven hours
faster than normal air mail service.
In many instances, corres­
pondent banks pick up a day
in a v a ila b ility b e c au se
Continental maintains a
night force which proc- /
esses items well after
the Fed close-off.
The right people. . .
BA NK AN ALY STS
make a continuous check
of airline and courier

schedules to m ake sure
correspondents get every
advantage in speed and
service.
Nearly 800 techni
cally trained personnel
in the Proof Transit
and Document Proc­
essing Divisions proc­
e ss up to 1 ,2 5 0 ,0 0 0
checks in a 24-hour
period. And to as­
sure accurate han­
dlin g , each cash
letter is the respon­
sibility of a group of individuals
fam iliar w ith th a t p a rtic u la r^
bank’s sendings. As an extra measure
of service, Continental is often able
to supply missing endorsem ents,
guarantee amounts on return items,
spot check kiting, and special-handle
large items.
Correspondent calling officers in
the field study specific situations and
work directly with banks to alert
them to steps they can take to accel­
erate the check clearing process and
improve their earnings.
And the right equipment. . .
T H E M OST SO PH IST IC A T E D
COMPUTER SYSTEM is used in
the Document Processing Division to
facilitate high-speed sorting and
processing. This enables Continen­
tal to process items longer and

^

.

still meet Clearing House
>)) and Federal Reserve
deadlines.

To give correspondent
banks every possible
advantage. . .
IMMEDIATE ROUNDTHE-CLOCK PICKUP of
y checks 7 days a week to assure receipt hours ahead of
regular routing channels.
IMMEDIATE ATTENTION to
checks and fastest processing 24
hours a day.
IMMEDIATE AVAILABILITY of
funds on checks drawn on Continen­
tal.
IMMEDIATE AVAILABILITY of
funds on checks drawn on all other
Chicago Banks, and on banks in
many other major cities if received in
time for clearings.
O N E-D A Y A V A IL A B IL IT Y of
funds on checks drawn on 33 Fed
cities from coast to coast and on cer­
tain non-Fed cities where Continen­
tal has direct sending arrangements.
Furthermore, since April, Continen­
tal has been providing one-day avail­
a b ility , and in som e in sta n c e s
immediate availability, on 282 addi­
tional banks in the 10-county area
surrounding Chicago.

r

Today, as for over 100 years, Conti­
nental Bank offers correspondents
unsurpassed check processing for the
fastest availability of funds.

CONTINENTAL BANK
Continental Illinois National Bank and Trust Company of Chicago,
231 South La Salle Street, Chicago, Illinois 60693. Member F.D.I.C.

Digitized
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e mFRASER
ber, 1972
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Federal Reserve Bank of St. Louis

71

' - _ V■
*. -y* -

Paul Lindholm
and Harold Wahlquist
look forward to seeing you
at the 98th American Bankers
Association Convention
October 7-11 at the
Dallas Convention Center.
Correspondent Banking Department

[M Northwestern
wyj National Bank
\jhJ o f M in n e a p o l is

M em ber F D IC

1872-1979


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

N o rt h w e s te rn Banker.

years with 7% annual interest.
Girard L. Steuart, president of the
bank, said that total capital will now
stand at $900,000.

M innesota

NEWS

A p p roval R eceived
JOHN NASH
T. L. JEFFERS

President
Exec. V. P.

St. Paul
Minneapolis

MBA District Meetings Are Scheduled
HE Minnesota Bankers Associa­
T
tion (MBA) 1972 district meetings
will be held at seven locations through­
out the state September 18-27, accord­
ing to Association President John F.
Nash, president, American National
Bank and Trust Company, St. Paul.
Mr. Nash will head the delegation
of speakers and officers on the meet­
ing program, which will be followed by
the annual MBA district meeting and
dinner. The Association holds a series
of meetings each fall to up date its
membership on recent developments in
the banking industry and to hold dis­
trict business meetings and elections.

G. NIGH

H. E. OLSON, JR.

The Minnesota Bankers Association
Educational Committee officers and
American Institute of Banking associ­
ate councilmen responsible for over­
seeing the study groups activities in the
state, in addition to Mr. Edmunds, in­
clude: Rodger Bense, First National
Bank, Long Prairie; Donald Lindeman, First National Bank, St. Paul;
and Larry Peak, Airport State Bank,
Duluth.
Information on the Minnesota

B ankers A ssociation-A .I.B . study
group program can be obtained by
contacting the Minnesota Bankers As­
sociation office in Minneapolis.

N a m e T w o D irecto rs
Don Downs and Vaughn Sinclair
have been named directors of the Citi­
zens State Bank, St. James.
Mr. Downs is president of Tony
Downs Foods Co. Mr. Sinclair is man­
ager of Watonwan Farm Service Co.
and is a director of Farmland Indus­
tries and Farmland Foods.

N am ed to F in a n ce P o st
Frank A. Tarnowski, vice president
of the commercial loan division of
First American National Bank, Du­
luth, has been named a director of the
North Central Credit and Financial
Management Association. He repre­
sents the Duluth-Superior Division on
the association’s state board.
Mr. Tarnowski is a graduate of the
University of Minnesota and has at­
tended the Graduate School of Bank­
ing of Rutgers University.

C loq u et Hank Stock S p lit
The City National Bank of Cloquet
has announced a two-for-one stock
split and plans to increase capital by
$300,000.
The stock split will lower the price
of shares to $40 per share. 2,550
shares of additional stock will be is­
sued at the new price in an effort to
raise capital $100,000. $200,000 addi­
tional capital will be raised through
capital debentures for a term of 10

The Shelard National Bank of St.
Louis Park has received approval from
The Regional Administrator of Banks
of its application for a charter.

C o n v ersio n Is A p p ro v ed
The First Hennepin National Bank’s
application for conversion from First
Hennepin State Bank of Minneapolis
has been approved by The Regional
Administrator of Banks.

S h ea rer T o Be P r e sid en t,
D irecto r o f B abbitt B ank
Harry A. Shearer has been elected
president and director of the First State
Bank of Babbitt, according to the
bank’s board of
directors.
M r. S h earer
succeeds William
L. Connelly, who
has been elected
president of the
Northfield Nation­
al B a n k . Both
banks are affili­
ated with First
Bank System, Inc.,
a regional bank hold company. The
two appointments were effective on
September 1.
Mr. Shearer is a graduate of the
University of Montana, Missoula, with
a BS in business administration. He
joined the staff of Southside National
Bank of Missoula in 1962, advancing
to assistant vice president.
Since April, 1971, he has been asso­
ciated with First Bank System, Minne­
apolis in the credit review department.
In March he was appointed liaison
credit officer of the bank liaison divi­
sion.

1972 Minnesota District Meetings
D istr ic t

8
9
6
I
3,4,5
7
2

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m kFRASER
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Federal Reserve Bank of St. Louis

D a te

Sept.
Sept.
Sept.
Sept.
Sept.
Sept.
Sept.

18
19
20
21
25
26
27

P la c e

Duluth
Moorhead
Brainerd
Rochester
Anoka
Montevideo
Mankato

S ite

Duluth Hotel
Holiday Inn
Madden’s
Kahler Hotel
Majestic Oaks Country Club
Montevideo Country Club
Kato Ballroom

73

mm,

HE BOARD of directors of The
T
First National Bank of St. Paul
has elected Philip H. Nason to the
newly created position of chairman of
the board. Mr. Nason, who had been
president of the bank since 1954, con­
tinues as chief executive officer. Clar­
ence G. Frame, executive vice presi­
dent, was elected to succeed Mr.
Nason as president of the bank.

Charles K. Maddux, data services
officer, has been named correspondent
banking officer and has assumed re­
sponsibility for the department’s
Northern Minnesota territory.

cipal responsibility for chairing the
senior officers’ credit committee and
becomes a member of the executive
credit committee.

J. K. GROGAN
C. K. MADDUX

C. G. FRAME

P. H. NASON

Mr. Nason has been president of
both The Association of Reserve City
Bankers and the Federal Advisory
Council. His corporate directorships,
in addition to the bank, include: First
Bank System, Inc., of which First Na­
tional of St. Paul is a member, First
Trust Company, Federal Reserve Bank
of Minneapolis, and Burlington North­
ern, Inc.
Mr. Frame has been executive vice
president since 1969. In his new post
he will be deputy chief executive of­
ficer and will continue to direct whole­
sale, investment, and international op­
erations for the bank in addition to his
new duties. He is a graduate of the
University of Minnesota and the Har­
vard Faw School. He joined the bank
in 1947.
t- * *
A realignment of territories for two
members of the correspondent banking
department of the Northwestern Na­
tional Bank of Minneapolis have been
announced by C. Paul Lindholm, vice
president and head of the correspond­
ent department.
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Federal Reserve Bank of St. Louis

J. H. MARTIN

John H. Martin has been named
correspondent bank representative and
will represent the bank in Southern
Minnesota and Iowa.
* * *
The First National Bank of Min­
neapolis has announced a major reor­
ganization of its commercial banking
group, because of the rapid expansion
in that area of the bank’s activities.
George H. Dixon, chairman and
president, announced that two new
corporate banking departments will be
formed. They will be responsible for
all present functions of the regional
banking department and the national
accounts and correspondent banking
department.
Corporate Banking Department I
will be headed by John K. Grogan,
vice president and senior commercial
banking officer. This department will
be responsible for commercial banking
divisions B and D, national accounts,
correspondent banking leasing, finan­
cial computer services and corporate
cash management.
Corporate Banking Department II
will be headed by Fenwick C. Atwill
II, vice president. It will be responsi­
ble for divisions C and I and the credit
division. Mr. Atwill also assumes prin­

F. C. ATWILL II

These new corporate banking de­
partments, together with the interna­
tional banking department, real estate
banking department and the loan re­
view division, will report to Roland H.
Thuleen, senior vice president.
Several other officer changes were
also announced at the bank. John E.
McCauley, vice president, has been
named head of division I, replacing
Mr. Atwill. John S. Pillsbury, III has
been promoted from assistant vice
president to vice president and will
head division B, formerly headed by
Mr. McCauley.
Warren T. Plante, assistant vice
president, was promoted to vice presi­
dent in division E, and Paul M. Blad
was appointed commercial banking of­
ficer in that division.
Also announced were the elections
of Roger A. Bowers as investment of­
ficer and Timothy D. Marrinan as trust
officer. Mr. Bowers is in the portfolio
management division of the trust in­
vestment department, and Mr. Marri­
nan is in the trust estates and guardian­
ships division.
The election of Ronald A. Erickson
to the bank’s trust committee was an­
nounced. He is counsel and assistant
to the president, Erickson Petroleum
Corporation.
N o rth w e ste rn B a n ke r

y-

y

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are now the easiest
loans to administer.

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send for the free brochure on our new
Student Loan Servicing Program.
Student loans easy to a d m in ister? A b solu tely!
Thanks to First M inneapolis’ new Student Loan
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Student loans are now so easy to handle, you
may actually welcome them. (After all, students
can grow into excellent long term customers.) For
the full story, ask for our new free brochure. Write:

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120 South Sixth Street, M inneapolis, M innesota
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Student Loan Servicing Center • First National Bank of Minneapolis, 120 South 6th Street • Member FDIC
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75

Robert C. Knock, Daniel R. Dono­
van and Paul A. Zoschke were named
trust investment officers. Mr. Buuck
is a portfolio manager in the trust in­
vestment division. Mr. Donovan began
with the bank in 1970 as a security
analyst. Mr. Zoschke joined the bank’s
trust investment division earlier this
year, having formerly been with the
First Wisconsin National Bank of
Madison.
At the bank’s North American of­
fice, Dale C. Johnson was named op­
erations officer and Lorraine C. John­
son was appointed personal banking
officer. Mr. Johnson has been person­
nel and operations manager at the
North American office. Mrs. Johnson
has served in collections and as wom­
en’s consultant in the personal banking
department.
* * *
The merger of Dain, Kalman &
Quail, Inc., and Ralph W. Davis Co.,
Inc., a specialist firm on the Midwest
Stock Exchange, has been announced
by Robert W. Fischer, chief executive
officer of Dain, Kalman & Quail. Mr.
Fischer said the merger has been ap­
proved by the New York Stock Ex­
change, other regulatory bodies and
the stockholders of both companies.
Under the merger agreement, the
Davis Company, founded in 1952, will
function as a wholly-owned subsidi­
ary, continuing its efforts in corres­
pondence and specialist roles. It does
not deal directly with any retail or in­
stitutional customers and does not un­
derwrite securities offerings, but deals
only with other Midwest Stock Ex­
change members or trades for its own
account.
Dain, Kalman & Quail also an­
nounced the promotions of three offi­
cers and the appointment of a branch
office manager.
Newly elected vice presidents are
John P. Bly and FYank S. Dean. Mr.
Bly, a senior security analyst, joined
Dain in 1969 after serving for seven
years as manager of the Chicago office
of Touche, Ross & Co., accounting
firm. Mr. Dean is director of the re­
search department, having joined the
firm in 1971. Prior to that he was a
senior analyst with Investors Diversi­
fied Services, Inc.
Lynn R. Swon was named assistant
vice president. She is in the syndicate
department, having joined Dain in
1968.
William C. Hough has been ap­
pointed to the new position of branch
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Federal Reserve Bank of St. Louis

office manager of the St. Paul office.
Mr. Hough joined Dain in 1969 as
manager of the Rapid City, S. D. of­
fice. He entered the securities business
in 1960 selling municipal bonds in
Montana for the American National
Bank of St. Paul.
* * *
Three staff members of the First Na­
tional Bank of Hopkins have received
officer promotions, according to G.
William Jude, president of the bank.
Harold E. Underhill was promoted
to vice president, installment banking
division. Mr. Underhill has been in
banking for 36
y e a r s , starting
with First Nation­
al Bank of Minne­
apolis. He has
been with the First
of Hopkins since
1954, first as
chief clerk and
most recently as
a s s i s t a n t vice
p r e s i d e n t and
H* E‘ UNDERH,LiL
manager of the installment loan depart­
ment.
Mrs. Maxine F. Shaner was named
installment banking officer and man­
ager of operations, installment bank­
ing division. She began her career with
the bank as a vault clerk. In 1970 she
was named administrative assistant.
James H. Thompson was promoted
to commercial banking officer and di­
rector of marketing. He graduated
from the University of Minnesota in
1970 with a degree in finance and mar­
keting. He joined the bank last year
as adjuster, installment banking divi­
sion.

M. F. SHANER

*

J. H. THOMPSON

*

*

Richard E. Stevenson, president, has
announced three promotions at the
Valley National Bank of St. Paul.
Promoted from assistant cashiers to
assistant vice presidents were Jo Ann
Class and Jeanette Johnson. Mrs. Class
joined the bank in the bookkeeping de­
partment in 1970. Mrs. Johnson began

with the bank in the loan department
in 1969.
Daniel J. Seaberg was named as­
sistant cashier in the loan department.
He joined the bank’s loan department
last February.
* * *
David A. Heider has been elected
executive vice president at Gambles
Continental State Bank, St. Paul, ac­
cording to Walter H. Davies, Jr., chair­
man.
Mr. Heider comes to the bank from
the Harvard Medical School, where he
served since 1969 as an associate in
business adminis­
tration. Prior to
that he was an in­
structor at the
Harvard Graduate
School of Busi­
ness Administra­
tion. He is a
graduate
of
Swarthmore Col­
lege and holds an
MBA from Hard . a . h eid er
vard.
In addition to his work at Harvard,
Hr. Heider served several corporate
and institutional clients in a consulting
capacity and served as a director of
two companies.
* * *
Roger Cunningham, vice president,
has assumed operational direction at
the North Star State Bank, according
to A. E. Ritt, M.D., president. Mr.
Cunningham replaces George R. Jans­
sen, vice president, in this capacity.
Mr. Janssen is leaving the bank to be­
come an account representative for
Halsey Stewart.
*

si:

*

An amendment has been authorized
by the banking division of the State
Department of Commerce to increase
capital stock of the Minnesota State
Bank of St. Paul from $250,000 to
$350,000 through sale of additional
stock.
* * *
Perrie C. Boliou, vice president at
the First National Bank of St. Paul,
has been named St. Paul area director
of the National Alliance of Business­
men.
* * *
Nearly 1500 enthusiastic kids
swarmed the Nicollet Mall in down­
town Minneapolis during the recent
Minneapolis Aquatennial summer fes­
tival looking for ladybugs.
Youngsters were after the five silver
ladybugs that were hidden on the mall.
N o rt h w e s te rn B anker

Bob Knopke He’ll Be Happy to Help Y ou...612/228-2245


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

Finders during the Kids Day “Bug
Hunt,” sponsored by the National City
Bank of Minneapolis, were each
awarded a $100 National City Bank
savings certificate.
Kids swarmed the seven block mall
during the hunt, finding the ladybugs
in such unlikely places as a decorative
fountain and a self-service postal cen­
ter. Aqua Jester clowns and Aqua
Teens passed out balloons and clues
to the youngsters.
The idea for the Bug Hunt was an
outgrowth of a consumer campaign in­
augurated recently by National City
Bank, the theme line of which is “Tell
us what’s bugging you about your
money problems so we can serve you
better.” Advertising for the campaign
features an illustration of a ladybug.
* * *
First National Bank of Minneapolis
has become one of the first major
banks in the United States to achieve
total “one statement banking.”
Beginning August 1, 1972, First
Minneapolis customers began receiving
a statement which can:
a) show checking account activity
in summary terms — and in complete
detail, listing each individual check
processed by the bank in the order in
which the customer wrote it (rather
than the date it was paid by the bank);
b) indicate to the customer where
there is a gap in the check number se­
quence so that checks not yet cashed
can be spotted quickly;
c) show all activity on First Min­
neapolis’ automatic loan plan, Check­
ing Plus;
d) show all activity in one or more
savings accounts the customer may
have with the bank;
e) provide a record of installment
loans (like those for boats or autos)
where payments are made by auto­
matic transfers from checking.
According to George H. Dixon,
First Minneapolis chairman and pres­
ident, two other banks in the United
States, the Beverly Bank in Chicago
and Pacific National Bank of Cali­
fornia have a check reconcilement fea­
ture on a combined statement as does
First Minneapolis.
First Minneapolis was one of the
pioneers in one statement banking in
June, 1971, when it introduced UniStatement, a name which is trademarked nationally by the bank. UniStatement combined some 13 differ­
ent bank forms on one report.
Mr. Dixon said that First Minneapo­
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Minnesota News
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Federal Reserve Bank of St. Louis

lis was especially enthusiastic about
their new statement because of a re­
search report which showed that in a
representative sample of non-First
Minneapolis customers, 77% felt the
new statement was superior to the one
from their bank and of the group 51
per cent said they preferred the new
statement strongly.
First Bank System, Inc. reports that
income before securities transactions
increased 24.3% in the second quar­
ter and 9.2% for the six months.
Income before securities transac­
tions was $24,278,000 or $1.66 per
share for the six months compared
with $22,233,000 or $1.52 per share
reported for the comparable 1971 pe­
riod. For the second quarter, income
before securities transactions amount­
ed to $11,791,000 or 8l£ per share.
The comparable 1971 figures were
$9,487,000 and 65<£ per share.
Net income for the six months,
which includes net securities profits of
$572,000 in 1972, was $24,850,000
or $1.69 per share. Net income for the
1971 period was $23,344,000 or
$1.59 a share with net securities prof­
its contributing $1,111,000.
Loan volume increased sharply dur­
ing the second quarter. At $2.82 bil­
lion on June 30, 1972, loans were up
$195 million from March 31, 1972.
This contrasts with the lower rate of
loan growth in previous quarters. Dur­
ing the first quarter of 1972 loans grew
$56 million while, during the full year
of 1971, loans increased $267 million.
* * *
James C. Hoskin, 49, assistant vice
president at the First National Bank of
Minneapolis, died this past month fol­
lowing a heart at­
tack. He was only
recently named to
head the bank’s
new Division H.,
which serves vari­
ous categories of
professional peo­
ple, in su ra n c e
agencies, l a b o r
and fraternal or­
J. C. HOSKIN
ganizations.
Mr. Hoskin joined First Minneapolis
¡n 1941, and after advancing through
various responsibilities in collections
and central proof he went to the St.
Anthony Falls office in 1955.
* * *
Personnel changes in four territories
served by the correspondent bank di/ision of The First National Bank of
Saint Paul, were announced recently

by James T. Gowan, vice president
and division head.
Philip M. Broom, assistant vice
president, will service banks in the
Twin Cities metropolitan area up to
a 60 mile radius. Mr. Broom is a
graduate of the University of Minneso­
ta and has been with the bank since
1967.

K. A. HEISER

M. E. STILP

Donald R. Lindeinan, correspond­
ent bank officer, will service banks in
the Southwestern Minnesota — South
Dakota territory. Mr. Lindeman re­
cently transferred into the correspond­
ent bank division after 21 years experi­
ence in the operations department.
Mowry E. Stilp, correspondent bank
representative, has been assigned to the
Southeastern Minnesota — Wisconsin
— Upper Michigan territory. Mr. Stilp
is a 1965 graduate of Southern Meth­
odist University and a 1970 graduate
of St. Mary’s University, San Antonio,
where he earned his MBA. He has
been with the bank since 1970.
Kenneth A. Heiser, correspondent
bank representative, will service banks
in Iowa and Nebraska. Mr. Heiser is
the most recent addition to the cor­
respondent bank team. He transferred
within the bank from the auditing de­
partment, where he served as a special­
ist in financial and operational audit­
ing, and computer audit analysis.
* * *
Dain, Kalman & Quail, Inc., an­
nounced unaudited second quarter
consolidated net earnings of $896,600, or 68£ per share. This compares
with earnings of $432,900 or 33<7 per
share, for the second quarter of 1971.
Gross revenues for the three months
ended June 30 were $7,182,000. This
N o rt h w e s te rn B a n ke r

John Ordos, Ernie Pierson, Loren Herbst, Ralph Brown and Gil Falk

O ur
Full Service Team
Travels Everywhere

O ur caravan of Full Service Bankers
even plod scorching sands to serve you better. W hen the heat’s on, her e’s a Full Service
Team of Bankers that won’t dry up and blow away. If you need help to get over the
hum ps and bum ps of investments, credits, collections, data processing, loan analysis,
or systems and procedures, talk with the people who know the best routes to travel.
Call on M idland — an oasis of help in the ever shifting sands of banking problems.
O ur friends are legion.

Midland National Bank
ofM
ineapolis4®
401 Second Avenue South • Minneapolis, Minnesota 55480
M e m b e r F e d e ra l D e p o s it In s u r a n c e C o r p o r a tio n

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Federal Reserve Bank of St. Louis

79

compares with $5,250,900 for the sec­
ond quarter of 1971. Second quarter
revenues for Dain were up 36.8% and
earnings increased 107.1%.
Six months unaudited figures show
gross revenues of $13,578,300 com­
pared with $10,349,000 for the first
six months of 1971. For the half year,
net earnings were $1,537,300 or $1.16
a share up from $905,800 or 70^¿ a
share in the same period of 1971.
* * *

St. C loud
The Department of Commerce has
issued an amendment authorizing an
increase of capital stock at the North­
western Bank and Trust Company, St.

Cloud. The amendment authorizes an
increase of $300,000 by stock divi­
dend, bring total capital stock to
$600,000.

in Two Harbors in 1968, he was as­
sistant cashier at the Northwestern Na­
tional Bank of Hastings.

E lected P r e sid en t
O f S ilv er Bay B ank

More than 600 students participated
in 34 study groups throughout the state
this year, according to F. C. (Fritz) Ed­
monds, Minnesota
Bankers Association-American In­
stitute of Banking
educational com­
mittee chairman.
Mr. Edmunds,
cashier of the
Richfield B a n k
and Trust Com­
pany, said the
committee mem­
bers have the responsibility of organiz­
ing American Institute of Banking
courses throughout the state of Minne­
sota. The study groups carry on a
broad program of banking courses,
seminars and workshops. The method
of operation enables bank employees
to take banking courses in communi­
ties where the banking population is
not sufficient to maintain a full-time
banking educational center.
Study group chairmen in Minnesota
for 1972-73 include: Richard Benson,
First National Bank, Montevideo; Lar­
ry Blackowske, National Bank of
Commerce, Mankato; Robert Brolin,
First National Bank, Alexandria;
James W. Buisman, Bank of Willmar;
John Elsenpeter, First National Bank,
Walker; Gerald Gast, Farmers & Mer­
chants State Bank, Breckenridge; K.
S. Houlton, First National Bank, Elk
River; B. W. Lacher, First National
Bank, Virginia; Dale Macklanburg,
Wadena State Bank; Gary May, State
Bank of Worthington; Dale Mehrkens,
Goodhue County National Bank, Red
Wing.
Others include: Thomas B. Moog,
First Northwestern National Bank,
Redwood Falls; Steve Morgan, First
National Bank, Pipestone; Harold E.
Nuessmeier, First National Bank, Aus­
tin; Gerald Oosterhuis, Ogilvie State
Bank; Donald Philipsek, First Ameri­
can National Bank, St. Cloud; Donald
I. Piehl, First National Bank, Marshall;
Fred A. Sorenson, Union State Bank,
Thief River Falls; Ronald Staskopf,
First National Bank, Winona; John R.
Swanson, Citizens Bank & Trust Com­
pany, Hutchinson; August Williams
First National Bank, Rochester; and
Dale Williams, Citizens National Bank,
Madelia.

Palmer Hoffland has joined the Sil­
ver Bay State Bank as president. He
was formerly with the Two Harbors
First National Bank as vice president
and cashier.
Mr. Hoffland is a graduate of the
University of Wisconsin and the
American Bankers Association Na­
tional Mortgage School at Ohio State
University. Prior to joining the Bank

W hen You Have Business at
the Stockyards . . . Call the
Northwestern National Bank
W h e n y o u w an t “ o n -th e -s p o t” se r v ic e , p e r s o n ­
a liz e d

a tte n tio n , sp e e d

a n d re a l e ffic ie n c y in

tr a n sa c tio n s th at in v o lv e liv e s to c k h a n k in g . . .
th e sta ff at N o r th w e ste r n N a tio n a l B a n k h a v e
th e “ k n o w -h o w ” a n d lo c a tio n th at sa v e v a lu a b le
tim e .
C all 6 1 2 — 4 5 1 - 1 3 3 1 a n d le t u s k n o w y o u r n e e d s.
W e ’ll b e p le a s e d to se r v e y o u .

/|j\ Northwestern NationalBank
W)
ofSOUTHST.PAUL
SOUTH ST. PAUL, MINN. 5 5 0 7 5 /PHONE: 451-1331
AFFILIATED W ITH NORTHW EST BANCO R PO RATION
MEMBER FDIC

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AÍB S tu d y G roup P ro ject

N o rth w e ste rn B a n ker

“ NORTH CENTRAL LIFE OFFERS
‘NO-LIM IT’ UNDERWRITING.*
WE OBTAIN CREDITOR LIFE INSURANCE
O N VIRTUALLY EVERY LOAN,
REGARDLESS OF SIZE.”

The Red C o a t Desk a t
N o rth C e n tra l Life
m a k e s it e a s y to w rite
c r e d ito r life in s u ra n c e .
O n o u r la r g e r lo a n s ,
w e g e n e r a lly re c e iv e
im m e d ia te ‘o v e r-th e te le p h o n e ’ a p p r o v a l.
You c a n , to o !”
■ “ A t M in o t Federal Savings and Loan Asso­
c ia tio n , w e have a responsibility to our savers
to make the best possible loans to our b o r­
row ers. C re d ito r life insurance secures a loan
for everyone. FACT: During a recent fourteenmonth p e rio d , w e w ro te in excess of $2 m illion
in lo a n s, ra n g in g in size from $4,000 to
$15 ,000 . A ll but three loans w e re protected
w ith c re d ito r life insurance from the N orth
C e n tra l Life Insurance Company. FACT: W e ' re
sold on the Red Coat Desk. W e call to ll-fre e
and g e t instant and accurate rate calculations.
A n d te lephone u n d e rw ritin g on policies over
$10 ,0 0 0 . F A C T : They
c a re a b o u t you a t
N o rth C e n tra l Life.
W hen you ask a
question, you w ill
g e t an answer.
P ro m p tly . W e

Q U E N T IN H E N N E N F E N T , Assistant,
M in o t Federal Savings and Loan Ass’

like to close our loans w ith o u t delay. Fast
service from the Red Coat Desk permits our
staff to w o rk more efficie n tly. FACT: M a n y
o f our la rg e r borro w e rs buy ‘J o in t L ife ’ for
th e ir w ives. (If she dies, the loan is p aid in
fu ll.) It’s a good idea and w e recommend
it. FACT: O ffe rin g sensible, low -cost cre d ito r
life insurance protection to our customers en­
hances our y ie ld , often by as much as 50 %.
It’s p ro fita b le business. FACT: You can call
the Red Coat Desk toll free. W hy d o n ’t you
call today? In M innesota, call 800 / 792 -1030 .
In N o rth Dakota, South Dakota, N ebraska,
Io w a and W isconsin, the to ll-fre e number is
800 / 328 -1612 . FACT: If you w o u ld like to
know more a bout ‘N o -L im it’ u n d e rw ritin g and
the amazing Red Coat Desk from a le n d e r’s
p o in t of v ie w , call or w rite the N o rth C entral
Life Insurance Company, or call me personally
a t 701 / 839 -2161 .”

The Le ader in insurance through lending institutions.

N0R1H CENrW L LIFE INSURANCE C O H M N Y
275 East Fourth Street, St. Paul, Minnesota 55101

NCL-9723
S e p tefor
m bFRASER
e r, ! 972
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* A I I insurance c o v erage subject to the terms of the specific policies involved.

Circle No. 27 For More Information

81

The Northwestern National Bank of
Minneapolis has announced several
major officer promotions and appoint­
ments.
Clarence J. Lehecka has been
elected controller of Northwestern Na­
tional. He comes to the bank from the
Merchandise National Bank of Chica­
go, where he was senior vice president
in charge of operations. A graduate of
Northwestern University and the Uni­
versity of Wisconsin Graduate School
of Banking, he has had previous expe­
rience as an auditor at the Marquette
National Bank prior to his assignment
with Merchandise National.
Mr. Lehecka succeeds H. James
Leskee as controller. Mr. Leskee was
promoted to vice president in the
bank’s bond department. He had
joined the bank in 1960 and was
named assistant controller in 1965 and
controller in 1969. He is a graduate
of Michigan State University and the
Wisconsin Graduate School of Bank­
ing.
Three other vice presidents were
also elected. They are: Roger L.
Prigge, international division; Harold
G. Wahlquist, correspondent division,
and Stewart D. Sheldon, Jr., trust in­
vestment division.
Mr. Prigge has been in the interna­
tional banking department since 1959.
A graduate of Concordia College, St.
Paul, he was named assistant vice pres­
ident in 1969.
Mr. Wahlquist joined the bank in
1960 following graduation from Carleton College, Northfield, Minn. He has

served in various departments, and has
been an assistant vice president since
1969.
Mr. Sheldon is a graduate of Dart­
mouth College, Hanover, N. H. He
joined the bank in 1965 and was ap­
pointed trust investment officer in
1968 and assistant vice president in
1969.

R. L. PRIGGE

H, G. LUICK

Serving over 10 million people
TELEPHONE: 612-371-2711 NEW YORK TELEPHONE: 212-349-3432 TELETYPE: 910-576-2402

Dain ,Kalm an & Quail
INCORPORATED

In v e s tm e n t R e s e a rc h W ith A R e g io n a l A c c e n t
M e m b e r N e w Y o r k S to c k E x c h a n g e , ln c . / 1 0 0 D a in T o w e r, M p ls .

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Ten assistant vice presidents were
also elected.
Howard G. Luick was named assist­
ant vice president in the correspond­
ent division. He joined the bank as a
trainee in 1965, and was named cor­
respondent banking officer in 1968. He
is a University of Minnesota graduate.
In the international division, Charles
E. Meech and David L. Tremmel, in­
ternational banking officers, were pro­
moted to assistant vice presidents. Mr.
Meech, who joined the bank in 1966,
holds a bachelor of foreign trade de­
gree from the Thunderbird Graduate
School of International Management.
Mr. Tremmel, who joined Northwest­
ern as a foreign exchange trader in
1962, is the bank’s representative in
London.
William J, Cullen and John S. Hale
were named assistant vice presidents
in the personal trust division. Mr. Cul­
len, who has been with the bank since
1962, was named trust officer in 1968.
Mr. Hale, who is a graduate of the
University of Minnesota Law School,
joined the bank in 1965 as assistant
trust counsel and was named trust of­
ficer in 1969.
In the investment division, Richard
F. Johnson and Joan T. Smith were
elected assistant vice presidents. Mr.
Johnson holds a law degree from the
William Mitchell College of Law and
has been with the bank since 1970.
Mrs. Smith, who started with the bank
in 1959, holds B.S. and M.B.A. de­
grees from the University of Minneso­
ta.
In the portfolio division of the bond
department, Donald C. Darnell and
James R. Holker were named assistant
vice presidents. Mr. Darnell started
with the bank in the bond department
in 1953, and has been an officer since
1962. Mr. Holker started with the
bank in the business development sec­
tion in 1962 and has been an officer
since 1966.
Robert C. Talbert has joined the
bank as assistant vice president. A
graduate of the University of Minneso­
ta, he was formerly with Seattle First
National Bank as director of invest­
ment research.
Leo K. Lum and Karl O. Sharp
were named international banking of­
ficers. A graduate of Carleton College
in 1969, Mr. Lum joined the bank as
a trainee in 1970. Mr. Sharp joined the
bank in January of this year as an in­
ternational banking representative. He
was formerly with the Northwestern
International Bank of Minneapolis.
N o rth w e ste rn B a n ke r

Gordon V. Anderson, who has ac­
cepted a position with the Western Na­
tional Bank of Casper, Wy.
He is a graduate of Mankato State
College and is a member of the Amer­
ican Institute of Banking.

F irst State E lects O fficers

ARCH ITECT’S Sketch of the State Bank of New Prague.

New Prague Announces Construction Plans
plans for construction
P ROPOSED
of a new bank building were an­
nounced recently by the board of di­
rectors of the State Bank of New
Prague.
The occupancy date is set tentatively
for the summer of 1973.
The new building will be located on
Central Avenue and First Street, N.
E. and will have 6,050 square feet of
space. All banking services will be lo­
cated on the main floor. A lower level
is included in the plans, with a sunken
garden on the southwest part of the
building. Other bank services and of­
fices will use the space as future need
arises.

J o in s Staff at L ak efiek i
Clinton Baumgard has joined the
staff of the First State Bank of Lakefield as assistant cashier and agricul­
tural representative, according to B.
W. Rue, bank president. Mr. Baum­
gard has operated a farm in Ewington
Township for many years and has also
served the Soil Conservation Service
in Lakefield for the past 17 years.

P r o m o tio n s at K arlstad
The Karlstad State Bank has an­
nounced the promotions of James F.
Sherlack to cashier and Charles E. Ol­
son to assistant vice president.
Mr. Sherlack joined the bank in
1970 and was named assistant cashier
in 1971. He manages the installment
banking department, and among his
new responsibilities will be bank op­
erations and personnel.
Mr. Olson also joined the bank in
1970. He was named assistant cashier
in 1971. Among his duties will be ag­
ricultural and commercial financing,
investments, and bank asset manage­
ment.
S o p te
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On-site parking for 14 cars will be
available. Two drive-up units will be
provided on the west side of the build­
ing. For future expansions, provisions
were planned for a third drive-up fa­
cility.
Architect for the project is Richard
Vosejpka Associates, Inc. of Wayzata.

H o n o r K . O. Satire
An open house was held on July 24
at the Blue Earth State Bank to honor
K. O. Satire, chairman of the board,
w h o celebrated .................... ...........
his 80th birthday.
Mr. S a t i r e
graduated f r o m
St. Olaf College
in 1915 and then
entered the bank­
ing business in
Montana. In 1938
he joined the staff
of the Blue Earth
K. O. SATTRE
State Bank. Dur­
ing his tenure at the bank, the bank’s
total assets have increased from less
than $1,000,000 to over $15,000,00,
He is a past president of the Min­
nesota Bankers Association and has
served on several national committees
of the American Bankers Association.
From 1949 to 1951 he served as state
commissioner of banks.

F irst o f O w aton n a
N am es A ssistant C ashier
Donald E. Hanson has been ap­
pointed assistant cashier at the First
National Bank of Owatonna. The an­
nouncement was made by Ward
Dwight, president.
Mr. Hanson, who was previously
with the Northfield Bank, and the First
National Bank of Mankato, succeeds

Directors of The First State Bank of
Benson have announced the election of
James E. Hausauer as president and di­
rector of the bank.
Elected chairman
of the board was
Morris W. Stevens,
president of the
bank since 1963,
who will serve in
this capacity until
his retire men t
April 1, 1973.
A n a t i v e of
J. HAUSAUER
East Grand Forks,
Mr. Hausauer comes to Benson from
Wheaton, where he was president of
The First State Bank of Wheaton. He
began his banking career in 1952 when
he joined the staff of the First National
Bank of East Grand Forks. From June,
1957 to June, 1961, he was employed
by First System Services, Minneapolis,
examinations-audits-credits review di­
vision.

E lgin State B ank
An amendment to increase capital
stock from $25,000 to $100,000 at the
Elgin State Bank has been authorized
by the Banking Division of the State
Department of Commerce.

R ib b o n C u ttin g

TH E "LIT T LE BANK,” the new drive-in
and walk-up fa c ility o f the Downers Grove
National Bank, was opened recently w ith
th is rib bo n-cutting ceremony. Downers
Grove Mayor Frank Houck is pictured c u t­
tin g the ribbon of one d o lla r bills, as­
sisted by William Westrup, bank presi­
dent, and Gilbert C. Mochel, Sr., ch a ir­
man of the board. The new fa cility in ­
cludes three pneum atic tube drive-in sta­
tions and inside stations fo r walk-in con­
venience. W right and Co. was the archi­
te c t fo r the stru ctu re and construction
was handled by Rekstad Builders.

Minnesota News

83

Construction Begins on Le Center Bank

elected to the bank’s board of direc­
tors.
Mr. Smulan has been with the bank
since 1960. Prior to that he was with
the Bank of Velben, Velben, S. D.

J o in s D u lu th B ank
James P. Monpas has been elected
assistant vice president in charge of in­
stallment lending at Northwestern
Bank of Commerce, Duluth, it was an­
nounced last month by John M. Ow­
ens, president. He replaces Don Wolfe,
who has moved to Columbus, O.
Mr. Monpas previously was vice
president at Gambles Continental State
Bank, St. Paul.
PICTURED ABOVE is the a rtis t’s conception of the new home of the First National
Bank of Le Center. C onstruction has begun on the new structure w ith com pletion
scheduled for early January. Lam inated beam and deck construction is featured in the
building, w hich flares dra m atica lly skyward to the south in order to capture a view of
the Village Park. The in te rio r w ill com bine the rugged stru ctu ra l qualities of the exterior
along w ith a com prehensive use of carpeting and oiled teak furnishings. The to ta l b u ild ­
ing contains approxim ately 6,000 square feet of space. Vosejpka Associated, Inc., of
Wayzata designed the building.

W illiam C on n elly
H ead s N o r th field B ank

C onrad O tter ness E lected
P r e sid en t o f F irst State

Directors of the Northfield National
Bank have announced the election of
William L, Connelly as president of
the bank. He suc­
ceeds Walter Gildermeister, w h o
was elected chair­
man of the board
and will continue
in that capacity
until his retire­
ment on January
31, 1973.
Mr. Connelly
W. L. CONNELLY
comes to the bank
from Babbitt where he has been presi­
dent of the First State Bank since 1969.
He is a graduate of St. Thomas Col­
lege, St. Paul, and the University of
Wisconsin Graduate School of Bank­
ing.
He began his banking career at the
First National Bank of Austin in 1961,
then joined First Bank System in 1962
as a bank examiner for First System
Services, Inc., an affiliate. From 1964
to 1969 he was with First Edina Na­
tional Bank in several official capaci­
ties, and then was named president of
the First State Bank of Babbitt in
1969.

Conrad M. Otterness has been elect­
ed president and director of The First
State Bank of Wheaton, according to
the bank’s board
of directors.
Mr. Otterness
succeeds James E.
Hausauer, who
was elected presi­
dent of The First
State Bank of Ben­
son. He j o i n e d
the National Bank
of South Dakota
in Sioux Falls in
1957 and was elected assistant cashier
in 1960. In 1963 Mr. Otterness moved
to the Corsica branch where he also
managed the bank’s insurance agency.
In 1968 he was elected assistant vice
president and manager and was pro­
moted to vice president and manager
in April, 1970.

B u y In su ran ce A gen cy
Town and Country Insurance Agen­
cy, an agency for the State Bank of
Danube, has purchased the A. N.
Kleinhuizen Insurance Agency of
Danube.
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P au l G andrud on B oard
O f F in a n ce C o n g lo m era te
Paul W. Gandrud, past president of
the Minnesota Bankers Association
and president of the Swift County
Bank, Benson, has been elected a di­
rector of Pacific Standard Life Co.,
Davis, Calif., a $10 million financial
services holding company.
Mr. Gandrud was a founder and di­
rector of Bankers Capital Life Insur­
ance Co., Minneapolis, which was ac­
quired last year by Pacific Standard
and merged into its principal subsidi­
ary, Pacific Standard Life Insurance
Co., as part of the Banker Service Di­
vision. He is also a past president and
member of the executive council of the
American Bankers Association, and
organized the Minnesota Flying Bank­
ers Association, of which he is a past
president. He is a graduate of North­
western University.

N am ed D irecto r
At Lake City
Warren S. Peterson has been elected
to the board of directors of the Lake
City State Bank. He is a partner of
Peterson-Sheehan Co., a local firm
which owns a furniture store, a hard­
ware store and a mortuary.

C rook ston N a tio n a l
A p p o in ts D irecto r
Odine Smulan, vice president of
Crookston National Bank, has been

CLIFFO RD N. GAMBLE (le ft), president
and chairm an of the board of directors
of Pacific Standard Life Co., congratulates
Paul W. Gandrud, president of the Swift
County Bank, Benson, and past president
of the Minnesota Bankers Association, on
his election to the board o f Pacific
Standard.
N o rth w e ste rn B a n ke r

will begin at an early date and the
bank will then proceed with plans for
a new building. Plans for the new bank
building are still in the preliminary
stage and no dates have been set for
construction or leasing of contracts.
Plans for the new bank will be the
result of several years of planning by
both officers and directors.

South Dakota
NEWS
MORRIS G„ WINTER
NEIL MILNER

President

Secretary

Andes
Huron

S.D. Bankers Association Group Meetings
T ' HE 1972 Group Meetings of the
South Dakota Bankers Association will
be held September 11 through Septem­
ber 15.
The programs include the “Official
Welcome” by President Morris Winter;
“The AIB Today”; a report on the
“Midwest Banking Institute”; an open
discussion regarding the “Treasury
Record Keeping and Reporting Act”,
“OSHA”, “Regs D «fe J” and the “Hunt
Commission”; and the business meet­
ing for each group.
Registration will be from 1 p.m. to
3 p.m. each day. The social hour will
begin at 5:30 p.m. and the banquet at
6:30 p.m.
T h e banquet
speaker for the
Group Meetings
this year is Art
Holst. Mr. Holst
is a member of
the officiating staff
of the National
Football League,
serving as a line
judge. He was a
salesman for 10 years, Administrator of
the Forest Park Foundation of Peoria,
111. for 10 years and now has his own
company. Reservations should be made
in advance so the office staff can have
name badges and material ready at
registration, eliminating unnecessary
delays. The $12 fee will be refunded
promptly to anyone not able to attend.
Sept. 11 — Group 4 — Citizens Bank
of Mobridge, Mobridge Banquet —
Mobridge Country Club
Sept. 12 — Group 5 — Howard John­
son’s, Rapid City
Sept. 13 — Group 3 — Western Inn,
Chamberlain Banquet — Steak
House
Sept. 14 — Group 1 — Minnehaha
Country Club, Sioux Falls
Sept. 15 — Group 2 — Sheraton Mo­
tor Inn, Aberdeen

C han ges at N orth w estern
Several staff changes in various
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Northwestern National banks were an­
nounced by C. A. Lovre, president,
following the regular August meeting
of the board of directors in Sioux Falls.
Michael J. Nelson, now a personal
loan officer at the Madison branch,
will join the Sioux Falls main office
credit department staff as a loan offi­
cer. Gary G. Johnson, formerly opera­
tions officer at Madison, was named
a personal loan officer. M. F. Gruneich, formerly of the main office in­
stallment loan staff, has been elected
a personal loan officer at the Huron
branch.

N am ed C o rresp o n d en t Head
Loren D. Gerleman, assistant vice
president, has joined the Northwestern
National Bank of Sioux Falls’ marketi n g department
staff and has been
named to head
correspond­
ent bank rela­
tions. The an­
nouncement was
made by C. A.
Lovre, president
of the bank.
Mr. Gerleman
L. D. GERLEMAN
w a s previously
serving as regional manager for the
bank’s data processing affiliate, North­
west Computer Services, Inc. A grad­
uate of the University of Colorado, he
began his banking career in 1959 in
Northwestern’s Huron branch. He
served on the bank’s profit-improve­
ment study team in 1965, and joined
the Sioux Falls main office computer
center in 1966, becoming manager in
1969.

P u rch a se Land fo r
F u tu re B an k Site
The First National Bank of Watertown has announced the purchase of
property now occupied by Watertown’s
Lincoln Hotel as a future bank site.
R. H. Walrath, president of the
bank, said that demolition of the hotel

W eb ster O p en H ou se
The Security Bank in Webster ob­
served its 15th anniversary and recent
remodeling project with an open
house, according to Russell H. Garry,
president. Nearly 1400 people regis­
tered for savings accounts and bicy­
cles given away to area participants.
During the afternoon, 4 scholar­
ships of $200 each were awarded to
recent high school graduates who will
be attending college and trade schools
this fall. This program was inaugrated
by Thos E. Porter, now chairman of
the board, and recently expanded to
include the Roslyn Branch.

P rofit P la n n in g
The public relations committee of
the South Dakota Bankers Association
will hold a profit planning program in
Pierre on September 28. The program
will be conducted in cooperation with
the marketing division of the Ameri­
can Bankers Association.

N ew B oard M em ber
Arthur H. Davis, chairman and
president of the Miners and Merchants
Bank of Lead, has announced the re­
cent election of John R. Trucano to
the bank’s board of directors. Mr.
Trucano is president of the Black Hlils
Novelty Co. of Deadwood and Max­
well Music Co. of Pierre.

C uster B ank D irecto r
Elmer Flatt was recently elected to
the board of directors of the Custer
County Bank, Custer. He is manager
of the Black Hills Electric Coopera­
tive.

N a m ed O fficer al
N orth w estern B ranch
Linus Boehmer has been appointed
commercial loan officer at the Gregory
branch of the Northwestern National
Bank of Sioux Falls.
Mr. Boehmer joins the bank after
serving for the past 12 years with Pro­
duction Credit Association in Windom,
Minn.
85

Glen E. Anderegg was recently
named assistant vice president of the
Brookings Branch of the Northwestern
National Bank of Sioux Falls.
Mr. Anderegg joined the bank as
a personal loan officer in 1968. In
1972 he was named operations officer.
Prior to joining the bank he was asso­
ciated with finance companies in Iowa,
Nebraska and South Dakota.

M. GIBBS

Dakota chapter of the Bank Adminis­
tration Institute.

W estern O p e n in g fo r
W h itew o o d B ank B ran ch
The arrival of a western stagecoach
carrying officials with the key to the
bank door began the recent opening
of the Whitewood branch of the Min­
ers and Merchants Bank of Lead.
The celebration also included a barbeque, open house and a drawing for
a door prize, according to Art Davis,
president of the bank.
The bank facility is located in a re­
modeled building on Main Street in
Whitehood. Its vault door was built
about 1903 and was the best in its day.
It was obtained from the Black Hills
Bank and Trust Co. of Deadwood.
Glenn Paulson has been named
manager of the Whitewood branch. He
has been an examiner with the State
Banking Department for the past five
years.

G. E. ANDEREGG

Margaret Gibbs was recently named
operations officer at the Northwestern
National Bank of Huron, becoming the
first woman officer ever at the bank.
Mrs. Gibbs has been with the bank
since 1957, first as a teller and since
as bank manager and operations man­
ager. She is a former president of the
South Dakota Federation of Business
and Professional Women’s Club and
is president-elect of the Central South

D ain N am es M anager
In R apid City O ffice
Thomas C. Lee has been promoted
to resident manager of the Rapid City
office of Dain, Kalman & Quail, Inc.
He was formerly assistant manager.

Mr. Lee, a Rapid City native, is a
1963 graduate of the University of
Wyoming. He joined Dain in 1969
with three years previous experience
in the securities industry.

j o in s U n io n N ation al
John T. Vucurevich, president of
United National Bank, Rapid City,
has announced the appointment of
Dennis A. Kirkeby as vice presi­
dent and invest­
ment officer.
Mr. K i r k e b y
has been active
in investments for
the past twelve
years in the areas
of sales and man­
1 Aagement of both
D. A. KIRKEBY
debt and equity
securities. He was for four years a
registered representative of the New
York Stock Exchange. He is a graduate
of the University of Minnesota and the
Northwestern University School of In­
vestment Banking.
In addition to responsibility for the
bank investment portfolio, he will pro­
vide advisory service to regular cus­
tomers as well as to the newly estab­
lished trust department of the bank.

W e ll be seeing
you at the
South Dakota
group m eetings!

N

ORTHWE STER N
N

A

T

I O

N

DOWNTOWN

I

STOCKYARDS

9th & M A I N

I

8 2 8 £. RICE ST.

A

L

B A N P C

I COLONIAL

I

WESTWOOD

I

I

12th & KI WA NI S

26th & M INN.
INN .

LOREN GERLEMAN

Brookings, Chamberlain, Dell Rapids, Gregory, Huron, Lake Preston & Madison

86
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N o rt h w e s te rn Ba n ke r

OPEN HOUSE visito rs at the Northwestern National Bank of Sioux Falls, S. D. are shown registering fo r door prizes. RIGHT
guard, Harry Boyd, serves an open house visitor.

-Bank

Remodeled Northwestern National
Celebrates With Public Open House
National Bank,
Sioux Falls, S.D., celebrated the
remodeling and redecorating of the
main banking lobby with a public open
house last month, according to C. A.
Lovre, president.
The remodeling included the re­
alignment of the teller windows and
the removal of the traditional bank
rail. New carpet, drapes, furniture and
wall covering were added. The lobby
provides greater customer convenience
and bank efficiency.
Daring the open house hundreds of
people came to view the lobby. The
public also enjoyed gallons of coffee
and lemonade, dozens of cookies, and
pounds of mixed nuts and candy. They
registered for seven door prizes, which
were a chance to dip into a half bushel
pail of coins with both hands, and to
keep all the coins that they could hold
in both hands. There were two children
and five adult winners.
The open house week also marked
the kickoff of a premium promotion
for new accounts. The merchandise be­
ing used in the promotion is the tradi­
tional Blue Cornflower Corning Ware.
The winners of door prizes came in
to “dip” for their prizes following the
open house. In one of the more unique
door prize offers, two children and five
adult winners dipped into a half bushel
pail of coins with both hands. Each
contestant got to keep all the coins he
was able to get in the dish placed be­
side the pail.
The pail was filled with coins rang­

N

o rth w estern

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Federal Reserve Bank of St. Louis

ing in value from fifty cents to five
cents. The amount of money “dipped”
by each contestant ranged from $36 to
$63. The average amount received by
each contestant was $51.

In v e stm en t C o u n cil S elects
S tep h en M yers as O fficer
Stephen R. Myers has been selected
as investment officer for The South
Dakota Investment Council, according
to Chairman C. P. (Buck) Moore.
Mr. Myers, 29, is originally from
Pierre and is a graduate of the Uni­
versity of South Dakota. He has been
in investment work since 1968, em­
ployed by Goodbody and Co., Merrill,
Lynch, Pierce, Fenner and Smith, and
presently with Lehman Brothers, an
investment banking firm in Chicago.
His responsibilities will be manag­
ing short term investments, debt se-

South Dakota
Meetings
Sept. 28 — PR Committee profit plan­
ning program, Pierre.
Oct. 11-13 — Economic Seminar,
Mitchell on the 11th and 12th, Wa­
tertown on the 12th and 13th.
Nov. 2 — Bank Management Confer­
ence, Holiday Inn, Sioux Falls.
Nov. 16-17 — 1972 Installment Cred­
it Conference, Howard Johnsons,
Rapid City.
April 10-11 — Agricultural Confer­
ence, Brookings.

curities and portfolios, working with
pension funds, agencies, and trusts, co­
ordinating with the state treasurer and
auditor to keep fully invested, current
knowledge of the market, responsibili­
ty for all records, and reporting to the
Investment Council.
The Investment Council was cre­
ated by the 1971 state legislature for
the purpose of advising the state on the
investment of public funds.

A p p lica tio n Is A p p ro v ed
The First National Bank in Brook­
ings has received approval of its appli­
cation to establish a branch bank by
The Regional Administrator of Na­
tional Banks.

H e lm b er g er j o in s Staff
Gene Helmberger, 27, has joined
the staff at the Spearfish office of the
First National Bank of the Black Hills
as bank insurance agent.
He has been employed at the Com­
munity State Bank in Hayti for the
past four years.

First o f S io u x F alls
The promotion of Merton C. Peter­
son to assistant trust officer at the First
National Bank in Sioux Falls was an­
nounced by W. S. Baker, president.
Mr. Peterson is a graduate of the
University of South Dakota with a de­
gree in business administration. He has
been employed in the trust department
since he graduated a year ago.
South Dakota News

87

North Dakota
NEWS
DANIEL J. LESSARD
W. J. DANER

President

Secretary

Grafton
Bismarck

State University with a degree in agri­
cultural economics, he began his bank­
ing career in 1968 as a credit analyst
with the St. Paul Bank of Coopera­
tives. He joined the bank in Oakes in
1970 as assistant cashier and ag rep­
resentative. He is currently in charge
of overall operations at the bank.
Marvin V. Hein was promoted from
cashier to agricultural representative
and cashier. He attended the State
Normal and Industrial College in Ellendale prior to joining the bank in
1960. He began in the bookkeeping
department and has subsequently
moved from bookkeeper to assistant
cashier to cashier and now his present
position. In his new position he will
work with the loan department.
Mrs. Joan Roney was promoted
from bookkeeper to assistant cashier.
She has worked for the bank since
1969 as head bookkeeper.
Mr. Larson also announced that he
has assumed duties as president of the
bank, a post left vacant since the resig­
nation of Dennis Dalziel in June.

J a m estow n P r o m o tio n s
Two promotions were announced at
the First James River National Bank
following a recent board meeting.

P. B. J O H N S O N

W . N . D U TO IT

P. B. (Blaise) Johnson was pro­
moted from cashier to vice president
and cashier. Prior to joining the bank
in April of 1965, he was associated
with Johnson Brothers, Inc., of James­
town, a retail farm equipment firm. He
is a graduate of Jamestown College,
the Midwest Banking Institute, and is
presently enrolled at the University of
Wisconsin’s Graduate School of Bank­
ing. He is also the current president
of the James River chapter of the Bank
Administration Institute.
William N. Dutoit was promoted
from agricultural representative to as­
sistant vice president and ag repre­
sentative. A graduate of North Dakota
State University, he joined the bank
in 1970.

F argo B an k N am es
M in n esota Man
Gary G. Wood has been elected as­
sistant cashier and auditor of the Da­
kota National Bank & Trust Co. of
Fargo.
Mr. Wood, a native of Aberdeen,
S.D., has spent the past two years as
regional internal control and opera­
tions auditor for seven banks in the
Marshall, Minn., area.

T h ree P r o m o tio n s
M ade at F irst o f O akes
Franklin G. Larson, chairman of the
board of the First National Bank of
Oakes, has announced staff promotions
at the bank.
John R. Breitbach, vice president,
was promoted to executive vice presi­
dent. A graduate of North Dakota

T w o O fficers N am ed
At F irst o f F a rg o

Northeast
Northwest
Southwest
Southeast

88
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Federal Reserve Bank of St. Louis

D a te

October
October
October
October

P la ce

17
18
19
20

E lect T w o D irecto rs
Jack Bannerman, chairman of the
board of the Walsh County Bank of
Grafton, has announced the addition
of two new members to the board of
directors.

W. DESAUTEL

E. G. HUTSON

The new directors are Wally DeSautel, owner of Wally’s Fairway, a local
grocery business, and Ernest G. “Hod”
Hutson, a sales representative for In­
vestor Diversified Services, Inc., of
Minneapolis.
Mr. DeSautel has managed the local
store since 1952. A member of the
Grafton Chamber of Commerce, he
was named “Boss of the Year” in 1969
by the Chamber.
Mr. Hutson is a former commercial
pilot and former owner of Grafton
Aero Service, which he sold to Dakota
Aviation.

A n n o u n ce Staff C hanges

John H. McNair and Leslie Nesvig
have been named assistant vice presi­

1972 Psorth Dakota Group Meetings
G ro u p

dents of the First National Bank and
Trust Company of Fargo. The an­
nouncement was made by R. D. Harkison, bank president.
Mr. McNair has been with the bank
since 1939, starting as a messenger.
He is currently manager of the custom­
er service department. A graduate of
Dakota Business College, he has been
active in the American Institute of
Banking programs, serving as an in­
structor of special banking courses.
Mr. Nesvig joins the banks staff as
an agricultural representative. He was
formerly with the First National Bank
and Trust Company of Bismarck, and
holds a degree in agricultural econom­
ics from North Dakota State Universi­
ty.

Devils Lake
New Town
(Undecided)
(Undecided)

President N. K. Christensen of the
First National Bank in Wahpeton has
announced the election of Loren W.
Hamre as vice president. He succeeds
Robert W. Alinder, who has been
named vice president at the First Na­
tional Bank, Kalispell, Mont.
Mr. Hamre was formerly president
of the Silver Bay State Bank, Silver
Bay, Minn. He began his banking ca­
reer in 1954 at the Northwestern Na­
tional Bank of Madison, S. D.
N o rth w e ste rn h a n k e r

Montana

NEWS
B. Ci. PAIGE
R. C. WALLACE

President

Phillpsburg

Secretory

Heleno

M BA C osp on sors Institu te
The Montana Bankers Association
has become the fifth state bankers as­
sociation to cosponsor the Midwest
Banking Institute.
The Institute was begun in 1967 as
the Rural Banking School by the Min­
nesota, North Dakota and South Da­
kota Bankers Association. The Wis­
consin Bankers Association became a
cosponsor in 1970.
The institute’s sixth session was held
by the five association’s recently at the
University of Minnesota, Morris, cam­
pus.

B an co R ep o rts E a rn in g s,
E lects N ew D irectors
Stockholders of Bancorporation of
Montana held their annual meeting re­
cently in Great Falls, according to
Charles W. Rubie, president and chief
executive officer of the Great Fallsbased holding company.
The group’s 39th consecutive divi­
dend was paid out on August 25 to
stockholders of record August 11. A
dividend of 20 cents per share was is­
sued.
Earnings before securities gains for
the six months ended June 30, 1972,

were $282,903, up 41.3% from
$200,188 for the same six month pe­
riod in 1971. Net earn'ngs were $287,483 for the six months ended June 30,
1972, up 52.0% from the $189,129
for the same six month period in 1971.
Primary net earnings per share (af­
ter securities gains, which were not
material) were 76 cents for the first
two quarters in 1972 compared to 96
cents for the first two quarters in 1971.
On a fully diluted basis, net earnings
per share were 76 cents for the first
two quarters in 1972 compared to 78
cents for the first two quarters in 1971.
The decrease in the comparative earn­
ings per share figures reflects the com­
pany’s public offering of common
stock in September, 1971.
New directors elected at the annual
meeting were: Charles B. Anderson,
Emmers Berg, George W. Hall, A. C.
Kammerzell, Dodds Keith, Dean H.
Albert and George W. O’Connor. All
officers of the corporation were re­
elected.

BAI to M eet in M issoula
The Glacier Chapter of the Bank
Administration Institute will hold its
fall meeting September 22-23 at the

Colorado

NEWS

Village Motor Inn, Missoula, accord­
ing to D. I. Voeller, publicity chairman
of the Chapter.
After registration at 6:30 p.m. Fri­
day evening, September 22, the first
address will be “Trust Banking in
Montana,” given by Ed Jasmin, vice
president and trust officer, Great Falls
National Bank. The second speaker
will be Dr. Patricia Douglas, associate
professor, School of Business, Universi­
ty of Montana, on the subject “Hunt
Commission Report and Its Implica­
tions to Banking in Montana.” After a
question and answer period the BAI
business meeting will be held.
The Saturday morning program will
open at 8:30 a.m. with “The Role of
Women in Banking” panel. Participants
will be Mrs. Heleyn Kauffman, assist­
ant vice president, Valley Bank, Bill­
ings; Mrs. Sally Sears, cashier, First
National Bank, Plains; Miss Genevieve
Remillard, vice president, First Se­
curity Bank, Glendive, and Wallace
Small, vice president and cashier, First
National Bank, Missoula.
Following the panel, Harold Pitts,
chairman of Miner’s Bank of Montana,
Butte, and BAI national director-atlarge, will show the “BAI Film and
Benefits of BAI.” He will be followed
by Duane F. Smith, OSHA supervisor,
State of Montana.
After a question and answer period
and luncheon, registrants will adjourn
to attend the University of Montana
and Northern Arizona State football
game. A symposium, dinner and enter­
tainment is scheduled to start at 6:00
p.m. to conclude the meeting.
tional Association of Credit Manage­
ment. Mrs. Hawkins is assistant credit
officer of the First National Bank of
Denver.

N a m e T w o O fficers
DALE R. HINMAN
Greely
President
Colorado Bonkers Assn.

A etna B u sin ess C redit
O p en s D en v er O ffice
Aetna Business Credit. Inc., has an­
nounced the opening of a Denver office
as part of a new business expan­
sion program, according to Robert
Schwaab, divisional vice-president.
Tony Struzik, 27, has been named
regional manager of the Denver office.
He will be in charge of a three state
area, which includes Colorado, Wyo­
ming and Nebraska.

Septem ber, 1972
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Federal Reserve Bank of St. Louis

Aetna Business Credit, Inc., a sub­
sidiary of Aetna Life & Casualty Co.,
is headquartered in Milwaukee. The
firm provides accounts receivable fi­
nancing, inventory loans, time sales fi­
nancing, factoring, capital loans and
equipment leasing.

N am ed H ead o f
C redit G roup
Mrs. Bemardine Hawkins has been
named chairman of the Credit Wom­
en’s Executive Committee of the Na­

Directors of the First National Bank
of Southglenn have named Charles J.
Whitehead assistant vice president,
dealer division, and David M. Haney
an assistant loan officer, both in the
installment loan department.
Mr. Whitehead was formerly vice
president of North Denver Bank, hav­
ing joined the First of Southglenn in
June of 1972. He has been in banking
and finance since 1937, and owned
Allstate Investment Corporation be­
fore entering banking.
Mr. Haney also joined the bank in
June of this year. He was graduated
from the University of Colorado in De­
cember, 1971.
89

E x ecu tiv e P ro m o ted
At C olorad o N ation al
D. Dale Browning has been pro­
moted to senior vice president at the
Colorado National Bank, according to
Melvin J. Roberts, chairman.
Mr. Browning, who has been a vice
president since 1969, is manager of
operations in the BankAmericard Cen­
ter, which serves
more than one
million card hold­
ers, 28,000 mer­
chants and 235
p a r t i c i p a ting banks in the
AVi state region
that it covers.
He is a grad­
uate of Kansas
Wesleyan Univer­
sity, and is an advisor to the board of
directors of National BankAmericard,
Inc., which coordinates all domestic
BankAmericard operation. He also is
a member of the board of directors of
the Charge Account Bankers Associa­
tion, a member and advisor of the in­
stallment loan committee of the Colo­
rado Bankers Association and serves
on the program committee of the bank
credit card division of the American
Bankers Association.
Other new officers elected at the
bank were: Harriet E. Clearman, as­
sistant cashier; John Holt, personal
trust officer, and Bob Junk, loan of­
ficer.

N a m e V ice P r e sid en t,
F o u r O th er O fficers
The United Bank of Denver has an­
nounced five promotions of staff mem­
bers including a vice president.
David R. Calahan, commercial
banking officer,
was promoted to
vice president. A
graduate of St.
Ôlaf C o l l e g e ,
Northfield, Minn.,
Mr. Calahan re­
ceived his M.B.A.
degree from the
D. R. CALAHAN
University of Den­
ver. He joined United Bank in 1968
and was named commercial banking
officer in 1970. He is a member of the
correspondent banking market being
responsible for Montana, Wyoming and
Utah.
David W. Atkinson and Thomas J.
Gordon were named trust officers. Mr.
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Federal Reserve Bank of St. Louis

Atkinson served with the First Na­
tional Bank of Kansas City and the
City National Bank and Trust Com­
pany of Kansas City before joining
United Bank’s trust banking division
in 1970. Mr. Gordon joined the bank
in 1970, having been previously asso­
ciated with the trust department at
Manufacturers National Bank of De­
troit, Mich.
Wallace A. Zellmer was appointed
trust investment officer. He is a port­
folio manager in the trust investment
group, and was a senior investment
analyst and portfolio manager with
Union Service Corporation before join­
ing United Bank in January of 1972.
Roger H. Bohart was appointed
commercial banking officer. Prior to
joining the bank in 1970 he was with
Union Carbide and State Farm Insur­
ance. He is a member of the consumer
products, recreation and leisure time
market in the commercial banking di­
vision.

D en v er A rea B a n k s
Set D e p o sit R eco rd
Total deposits in the 60 Denver area
banks have set an all-time high, ac­
cording to a recent survey by the
Rocky Mountain News.
As of June 30, 1972, total deposits
had reached over $3.125 billion, about
a 17% increase over last year’s record
total of $2.676 billion.
The survey also reported that the
latest total deposit figures show an in­
crease of $46.1 million since April 18,
1972, the last date when commercial
banks were asked to show their condi­
tion under state and federal regula­
tions.
First National of Denver was first
in total deposits with over $614 mil­
lion, followed by United Bank of Den­
ver, Colorado National Bank, Cen­
tral Bank & Trust and American Na­
tional Bank.
Only two banks in the area showed
a decline in deposits over the 12 month
period.

S ecu rity A nalysts
S elect New O fficers
Kenneth V. Penland, vice president
and trust officer at the First National
Bank of Denver, has been elected pres­
ident of the Denver Society of Se­
curity Analysts.
Assisting Mr. Penland for the com­
ing year will be: Richard S. Juson of
Financial Programs, vice president;
Robert W. Jeavons, Central Bank and

Trust Co., treasurer; Todger Ander­
son, United Bank of Denver, secre­
tary, and Michael L. Conn, Founders
Mutual Depositor Corp., recording
secretary.

C on stru ction B eg in s
Construction began recently on the
$750,000 addition to the University
National Bank of Denver. The project
will double the size of the present bank
and provide eight drive-in windows.

U n ited B an k o f D en v er
In its mid-year statement, United
Bank of Denver reported income be­
fore security gains of $2,310,000 for
the six months ended June 30. This fig­
ure is a 16 per cent increase over last
year’s figure of $1,998,000. Net in­
come for the six month period was
$2,514,000, almost a 20 per cent in­
crease over the six month figure a year
ago.
Net income per share increased
from $1.99 for the six months ended
June 30, 1971, to $2.46 for the same
period this year. John D. Hershner,
president and chief executive officer,
stated that 17 cents of this 47 cent in­
crease could be attributed to the rapid
gains on securities made in the last
year. Security gains totaled $204,000
for the six month period of 1972, a
gain of almost 600 per cent over last
years figure of $35,000.
Total deposits were increased over
the past year from $495,770,000 to
$528,369,000. Loans increased from
$346,782,000 to $409,039,000.
As of June 30, 1972, total assets of
the bank stood at $674,683,000.

N a m ed D irecto r
Directors of the First National Bank
of Bear Valley have named Ronald C.
Harris to the board of directors and
the executive committee. He is a vice
president of the bank.
Mr. Harris is also vice president of
the First National Bank of Denver, and
is a director of the First National Bank
of Northglenn. All three banks are af­
filiates of First National Bancorporation, Inc.

B ranch A p p roval R eceiv ed
The Westlake First National Bank,
Loveland, has received approval of its
application to establish a branch bank.

N am e C hange
A certificate has been issue to
change The First National Bank in
Fort Collins to the First National
Bank.
N o rt h w e s te rn B a n k e r

v

Air F o rce G eneral
N a m ed V ice P r e sid en t
Brigadier General Edwin S. Wittbrodt, recently retired commander of
the Air Force Accounting and Finance
Center in Denver, was elected a vice
president of Central Bank and Trust
Company at a recent board meeting.
General Wittbrodt will serve as mili­
tary affairs officer as well as liaison of­
ficer to the data processing division.
He was first commissioned in 1942
and transferred to the Air Force in
1949. He served ts budget officer for
the Air Force in Washington, D. C.
from 1949-1953 and from 1956-1961.
He was named comptroller of space
systems and aeronautical systems in
1962 and served in that capacity until
1966. From 1966-1968 he was direc­
tor of accounting and finance and as­
sistant comptroller of the Air Force.
In 1968 he was promoted to brigadier
general and named to his most recent
post in the Accounting and Finance
Center in Denver.

U n io n B & T
N a m es W ells
John A. Owens, president of Union
Bank & Trust, Denver, has announced
the promotion of J. Wayne Wells to
the position of
executive v i c e
presiden t. Mr.
Wells is a grad­
uate of the Col­
lege of Emporia
and prior to join­
ing Union Bank
in January of
1962 was as­
s o c i a t e d with
General Accept­
ance Corporation for ten years as per­
sonnel supervisor.

E a rn in g s U p
1 6 .7 % A t F irst
N a tio n a l B a n c o rp o ra tio n
Consolidated net income of The
First National Bancorporation, Inc.
showed an increase of 16.7 per cent
for the first six months of 1972 com­
pared to the same period in 1971,
Bruce D. Alexander, president, an­
nounced.
On June 30, 1972, consolidated net
income before securities gains and
losses was $2,738,101, or $1.99 per
share compared with $2,320,161, or
$1.56 per share for the same six
months of 1971. Earnings after se­
Digitized
S e p t e mfor
b eFRASER
r , 197 2
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Federal Reserve Bank of St. Louis

curities gains and losses was $2,824,754, or $2.06 per share compared with
$2,420,377, or $1.63 per share for
1971. On June 30, 1972, 1,373,467
shares were issued and outstanding; on
June 30, 1971, 1,488,585 shares were
issued and outstanding.

E a rn in g s U p fo r
U n ited B a n k s
United Banks of Colorado, Inc. has
announced plans to issue 260,000
shares of common stock to the public.
The underwriting will be headed by
Merrill Fynch, Pierce, Fenner & Smith
Inc. and Keefe, Bruyette & Woods,
Inc. A registration statement has been
filed with the Securities and Exchange
Commission in Washington, D.C. Price
of the stock will be determined at the
time the registration is rendered ef­
fective, and proceeds of the sale will
be used for the payment of short-term
indebtedness.
United Banks of Colorado has re­
ported income before securities gains
and losses of $3,340,000 for the first
six months of 1972 or $1.31 per share
as compared to $1.07 per share for last
year. This is an increase of 22%.
Net income was $3,556,000 for the
same period of 1972 or $1.40 per
share as compared to $1.08 per share
for last year.
Assets of United Banks of Colorado,
Inc. increased to $946,778,000 from
$786,262,000. Total deposits in­
creased $97,190,000 or 15% from

$662,833,000 on June 30, 1971 to
$760,023,000 on June 30, 1972.

C entral B ank & T rust
D isp la y s A ir Q u ality S ig n
An air quality forecast board, be­
lieved to be the first of its kind in the
nation, has been erected just off the
Speer Boulevard viaduct in Denver by
the Central Bank and Trust Company.
The sign, which is controlled from
the lobby of the bank, gives a threehour air quality forecast on a scale of
1 to 5, with good air conditions re­
ceiving a rating of 1. The forecast is
made by the Continuous Air Monitor­
ing Project Station in Denver, which
reports conditions to the State Health
Department, which in turn reports to
the bank.

B ank W o m e n ’s W eek
P ro cla im ed in D en ver
Mayor McNichols of Denver has
signed a proclamation designating the
week of September 17-23 as Bank
Women’s Week in Denver.

A m erica n o f D en v er
The American National Bank of
Denver has announced the promotion
of Richard Britten from assistant audi­
tor to deputy auditor. In his new posi­
tion, Mr. Britten will assume supervi­
sion of the audit staff.
It was also announced that Alan
Wentworth was appointed installment
loan officer.

Wyoming AE\YS
BERNARD R. WEBER
Cheyenne
President
Wyoming Bankers Assn.

East C h eyen n e
N am es D irecto r
Kenneth P. Reilly has been elected
to the board of directors of the East
Cheyenne National Bank. Mr. Reilly
is a native of Chicago and has lived in
Cheyenne since 1959. He is the own­
er of four McDonald’s Drive-In res­
taurants, including one located in
Cheyenne. He is extremely active in
various Cheyenne civic organizations.

N a m ed T o Board
Robert S. Kennedy, a Sheridan area
cattleman, was recently elected to the

board of directors of the First National
Bank of Sheridan. He is manager of
the Faddis-Kennedy Cattle Co., and
is president of the Brown-Kennedy
Ranch Co., Connor Realty and KenWesCo.

P r o m o tio nls A n n o u n ced
By F irst o f C asper
Robert E. Bryans has announced
the promotion of two staff members
to officer status.
Named assistant cashier and build­
ing manager is Jack D. Berry, who has
been with the bank since 1970. Prior
91

to that he was in the police department
in Santa Ana, Calif.
Mrs. Melba Tucker was promoted
to customer relations officer. A mem­
ber of the bank staff since 1943. Mrs.
Tucker is also a member of the Amer­
ican Institute of Banking.

E co n o m ic F oru m s P la n n e d
Wyoming bankers will be briefed on
business, agricultural, and financial
developments and economic policy
during a series of
f o u r economic
forums scheduled
for the state in
m i d-September.
The Federal Re­
serve Bank of
Kansas City will
present the fo­
rums in coopera­
tion w i t h the
Wyoming Bank­
er Association.
Three economists from the Reserve
Bank are discussing the regional, na­
tional, and international situtations
at sessions in Casper, Sept. 11;
Thermopolis, Sept. 12; Rock Springs,
Sept. 13; and Cheyenne, Sept. 14. The
speakers will be Thomas E. Davis, vice
president; Glenn H. Miller, Jr., re­
search officer; and C. Edward Harshbarger, agricultural economist.

C. E. HARSHBARGER

G. H. MILLER

George C. Rankin, vice president in
charge of the Kansas City Fed’s Den­
ver Branch, will be forum chairman.
A representative of the Wyoming
Bankers Association also will speak at
each meeting.
The forums continue a program of
the Kansas City Fed begun more than
25 years ago.

W B A C om m ittees N a m ed
President Bernard R. Weber of the
Wyoming Bankers Association has an­
nounced committee appointments for
the coming year. Chairmen of the re­
spective committees are:
Legislative Committee — Robert
W. Miracle, president, Wyoming Na­
tional Bank, Casper.
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92for FRASER
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Federal Reserve Bank of St. Louis

Taxation Committee — Felix Buchenroth, Jr., president, Jackson State
Bank, Jackson.
Agriculture Committee — John C.
Muller, agricultural loan officer, Bank
of Commerce, Sheridan.
Credit Conference Committee —
Lloyd Fordyce, vice president, First
National Bank, Casper.
Installment Loan Committee — Joe
Kasper, Jr., vice president, Cheyenne
National Bank, Cheyenne.
Advisory Committee to State Treas­
urer — Robert Bryans, president, First
National Bank, Casper.
Trust Committee — D. J. Swanton,
vice president and trust officer, First
National Bank, Casper.
Ted Ernst, vice president at the
American National Bank of Cheyenne,
was named representative on the State
Council for Economic Education.

B a n co E a rn in g s U p
A dividend of 9 cents per share was
paid July 21, 1972 to Wyoming Bancorporation stockholders of record as
of the close of business June 30, 1972,
the ninth consecutive dividend paid by
the Cheyenne based registered multi­
bank holding company since its in­
ception in March, 1970.
At the same time the corporation
disclosed that its net earnings before
securities transactions during the sec­
ond quarter of 1972 were a record
$335,264.00 or 30 cents per share
based on an average of 1,094,264
shares outstanding. This compares
with 1971 second quarter earnings of
19 cents per share on 594,909 shares
outstanding and also represents an in­
crease of 50% over first quarter 1972
earnings of 20 cents per share.
Net earnings before securities trans­
actions for the six months ending June
30, 1972 were $538,634.00 compared
with $256,186.00 for the first six
months of 1971 — an increase of 110
per cent. Earnings per share for the
first six months of 1972 were 50 cents
per share compared with 42 cents per
share for the same period in 1971. The
number of shares outstanding between
these periods increased 84 per cent.
Total income for the six months
ending June 30, 1972 was $3,536,000.00 compared with $2,218,000.00
for the same period in 1971.
On June 30, 1972, combined de­
posits of Wyoming Bancorporation’s
nine member banks were $110,820,111.00, up 150% over the same date
in 1971. Total assets of the corpora­
tion and its affiliates on June 30, 1972

were $136,879,599.00 — an increase
of 142% over 1971.

L ocal R esid en ts
B uy W orland B ank
Purchase of controlling interest in
the Stockgrowers State Bank of Wor­
land by a group of local residents was
announced recently by Don H. Bab­
bitt, Jr., president of the bank. Asso­
ciated with Mr. Babbitt in purchase
of the stock are Dee Benson, Harry
Moberly, George T. Muirhead, Dale
McGarvin and Leo Scheuerman. At
a special meeting, all six men were
elected to the board of directors.
Other board members include Elmer
J. Scott, Francis M. Muirhead and
Charles W. Gentry. Mr. Scott was
elected chairman of the board.
The Muirhead family had been prin­
cipal owners of the bank from 1910
to March 15, 1971, when the bank was
sold to a Wyoming based corporation
composed of men from Gillette, Sheri­
dan and Rapid City, S.D. The recent
sale included all the interests of this
group, according to Mr. Babbitt. The
bank was established in 1910.
In commenting on the purchase by
local businessmen, Mr. Babbitt stated:
“The interests of the community have
been and will continue to be a primary
objective in the operation of the Stockgrowers State Bank.”

W y o m in g B a n co E x p a n d s
W ith C o lo ra d o A c q u isitio n
The Greeley Finance Company of
Greeley, Colorado has become affili­
ated with Wyoming Bancorporation,
according to an announcement made
jointly by Everett E. Francis, presi­
dent of Greeley Finance, and A. H.
Trautwein, board chairman of Wyo­
ming Bancorporation.
An exchange of stock was involved
in the transaction, the announcement
said. However the stock exchange ratio
was not disclosed. Affiliation of Gree­
ley Finance with Wyoming Bancor­
poration, it was noted, is subject to the
approval of the Board of Governors
of the Federal Reserve System in
Washington and other regulatory au­
thorities.
Subject to this approval, Mr. Traut­
wein said, the acquisition of Greeley
Finance marks Wyoming Bancorpora­
tion’s first entry into an out-of-state
market. Certain out-of-state acquisi­
tions of companies engaged in business
“closely related to banking” are per­
mitted under the Bank Holding Com­
pany Act.
N o rt h w e s te rn B a n ke r

Don Ferrell is
a terrible golfer.
W hich is fine with us.
And, we suspect, with you.
Because correspondent banking demands a lot more than a man who can
tell the latest one about the farmer’s daughter. O r who can paint the town with
an expense account.
It demands professionalism. The kind that gets the job done for you.
W hen you need help with overlines, for example, you want it done quickly.
And properly. The same goes for transit. O r our specialized services.
T hat’s the way it’s going to be when you call on Don Ferrell. O r any of our
pros, for that matter.
Because professionalism is what we’re all about.

United Bank of Denver
17th <Sc Broadway * Phone:244-8811


S e p t e m b e r , 1972
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Federal Reserve Bank of St. Louis

93

Idaho
NEWS

Security Bank of Idaho, National As­
sociation, Boise, and The Farmers Na­
tional Bank of Buhl.

A p p lica tio n D isa p p ro v ed
H. B. FITZPATRICK
Blackfoot
President
Idaho Bankers
Association

An application by the Idaho First
National Bank for a branch bank in
Kootenai County has been disap­
proved.

B oard E lects M cM urren
B ic k m o r e Is N o m in a ted
For A .B .A . T reasu rer
J. Grant Bickmore, president of the
Idaho Bank and Trust Company in
P o c a t e l l o , has
b e e n nominated
for treasurer of the
American Bankers
Association.
Beginning h i s
career early, Mr.
Bickmore worked
as a bookkeeperteller at the Dow­
ney State Bank
J. G. BICKMORE
while going to high
school. Soon after graduation, he was
promoted to cashier.
Mr. Bickmore joined Security First
National Bank of Los Angeles in 1946.
Later he became a bank examiner for
the Federal Reserve Bank of San Fran­
cisco and the Department of Finance
in Idaho.
He joined the Idaho Bank and Trust
Company in 1950 as cashier. A series
of promotions culminated in his being
named president in 1963.
Previously, Mr. Bickmore has been
on the executive council and vice
president for Idaho of the American
Bankers Association; on the member­
ship, finance, government operations
and expense committees of the U.S.
Chamber of Commerce and on the
local and regional executive councils
of the Boy Scouts of America.

D irector E lected at
Idaho F irst N ation al
Jack Morgan has been elected to the
board of directors of the Idaho First
National Bank, Boise.
Mr. Morgan is the owner of J. I.
Morgan, Inc., logging contractors op­
erating principally in Southern Idaho.
He was born in Nova Scotia and edu­
cated in Cascade, Idaho.

2 B a n k s R eceive
B ranch A p p ro v a l
Branch applications have been ap­
proved for the following banks: First

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94
Federal Reserve Bank of St. Louis

Morrison-Knudsen Company Pres­
ident William H. McMurren has been
elected to The Idaho First National
Bank board of directors. McMurren
is chief executive officer of the world­
wide construction firm with headquar­
ters in Boise.

B ank o f P e r u P r o m o tio n
J. Ted Carper has been promoted
to assistant cashier at the bank of
Peru. He has been associated with the
bank since May 1, 1972.

Oregon
NEWS
RICHARD M. GREEN
Portland
President
Oregon Bankers
Association

Voss Named President
of Western Bancorp.
.
has recently been
R ALPH
elected president of Western Banj

V

oss

corporation, re­
portedly the sixth
largest
banking
corporation in the
world.
Mr. Voss is a
native of Rock­
well City, la., and
is now chairman
of the board, chief
executive officer
R. J. VOSS
and president of
the First National Bank of Oregon in
Portland.
Working at the First National Bank
while in high school gave Mr. Voss an
early start in his banking career. The
First National Bank is now part of the
Union State Bank of Rockwell City.
He attended Northwestern University
and graduated from the University of
Minnesota in business administration.
Mr. Voss has been director of

Northwest Natural Gas Co., Jantzen
Inc. and the Federal Reserve Bank of
San Francisco. He has been affiliated
with the Continental Illinois National
Bank and Trust Company in Chicago
and was assistant to the president and
senior vice president of the California
Bank of Los Angeles, now the United
California Bank.
In May, 1965, Mr. Voss became di­
rector of Western Bancorporation. As
president he will go to Los Angeles for
a week each month to handle the reins
of the holding company with resources
exceeding $13 billion.

2 B a n k s Get A p p roval
T o E stablish B ra n ch es
The United States National Bank of
Oregon, Portland, and the First Na­
tional Bank of Oregon, Portland, have
received approval from The Regional
Administrator of Banks to establish
branch banks.

A p p lica tio n D isa p p r o v e d
The First National Bank of Oregon,
Portland, has been disapproved by The
Regional Administrator of Banks to
establish a branch bank in Multnomah
County.

C hanges at F irst N a tio n a l
The First National Bank of Oregon,
Portland has announced the following
changes in its staff:
Ed Herman, vice president and
manager of the Sixth and Morrison
branch; M. K. Blohn, manager of the
Candalaria branch in Salem, and Wil­
liam Lidtke, manager of the North
Salem branch.

Nevada
NEWS
JORDAN J. CROUCH
Reno
President
Nevada Bankers
Association

T w o R eceiv e A ssig n m en ts
David L. Kennedy has been named
head of the Master Charge Department
at the First National Bank of Nevada,
Reno. Mr. Kennedy is a veteran of 12
years in banking, and was most recent­
ly a loan officer for First National at
the bank’s Second and Virginia office.
Keith W. Horner, assistant vice
president, has been named assistant
manager at the 15th and Charleston
N o rth w e ste rn B a n ker

v

louve got
something special
in California.
Security Pacific Bank. Over
a century of experience.

When we’re not “on the
road” you’ll find us at Security
Pacific Bank, one of the ten
largest banks in the country, with
over 450 branches in California
and with branches and offices in
principal world financial markets.
Head Office: 561 S. Spring
St., Los Angeles, California 90013.
Phone (213) 620-6211.
Northern California Head­
quarters : One Embarcadero
Center, San Francisco, California
94111, Phone (415) 445-4000.
Correspondent Banking Division.

J. Arthur Myers
V ice President

© 1 9 7 2 SECURITY PACIFIC NATIONAL BANK


S e p te m b e r, 1972
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Federal Reserve Bank of St. Louis

MEMBER FDIC

95

office in Las Vegas. He was formerly
head of the Master Charge Department
in Reno.
David J. Gomez, formerly assistant
manager, Valley Fair office, has been
elected manager of that office, succeed­
ing Michael S. Burraston.
Mr. Burraston has been named as­
sistant manager of the bank’s Sugar
House branch.
Robert D. Sturges, who has been
taking the bank’s management train­
ing program, has been named assistant
manager, South State Street office.
Romney Stewart has been elected
commercial loan officer, Main at First
South.
Richard L. Charles has been named
mortgage loan officer, Main at Fourth
South.

T o E stab lish B ran ch
The First National Bank of Nevada
in Reno has received approval from
The Regional Administrator of Na­
tional Banks to establish a branch in
the Sun Valley Shopping Center.

Utah
NEWS
DON A. CARLSON
Brigham City
President
Utah Bankers
Association

Hunter Elected to
First Security Board
Howard W. Hunter was
E LDER
elected director of the First Se­
curity Corporation in Ogden, Utah.
Elder Hunter is a member of the
Council of the Twelve, Church of
Jesus Christ of Latter-day Saints and
is director of several large corporations
including Beneficial Life Insurance
Company and Utah Home Fire Insur­
ance Company.
First Security has also announced
record highs in resources, deposits and
earnings for the first six months of
1972. Resources of First Security Cor­
poration, its banks and subsidiaries, on
June 30, 1972, were $1,336,741,157,
compared with $1,186,643,552 one
year ago, an increase of 12.6%. Re­
sources include $25 million of 7% ,
IV 2 year capital notes issued by the
corporation in April, according to the
bank executive.
Total deposits of First Security Cor­

96
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Federal Reserve Bank of St. Louis

poration affiliate banks at the end of First National Bank has announced
June were $1,072,353,453, an increase plans to implement Honeywell’s Series
of 11.2% over the $964,135,638 re­ 6000 Bank Information System Net­
ported on the same date in 1971.
work (BISNET).
First Security Corporation previous­
John H. Watford, vice president and
ly has reported record unaudited con­ manager of the bank’s data processing
solidate income before securities trans­ department, said, “BISNET is an on­
actions of $7,396,691, or $1.44 per line centralized processing system that
share, for the first two quarters, a provides a practical solution to the
6.5% increase over the preceding year. data management needs of the banking
Net income after securities transac­ industry.
tions at the end of the six-month peri­
“Implementation of BISNET and
od was $7,389,220, or $1.44 per installation in early 1973 of a leased
share, compared with $7,281,683, or dual-processor Honeywell Model 6080
$1.43 per share, one year ago.
computer system, valued in excess of
During the half-year period, First $5 million, represent a significant en­
Security Banks and Utah Mortgage hancement to the data processing ca­
Loan Corporation made 85,637 loans pabilities of our state-wide banking
totaling $782 017,929, an increase network,” Mr. Watford said. “This
over the $671,317,436 in loans made unique Series 6 0 0 0 /BISNET system
during the six-months period of 1971. combination will function in an on-line
The banks and Utah Mortgage Loan remote terminal environment.”
Corporation had real estate loans out­
Major applications of the new BIS­
standing totaling $261,060,310. In ad­ NET system are demand deposit ac­
dition, they were servicing real estate counting, savings accounting, loan ac­
loans to investors outside the Inter­ counting, trust accounting and other
mountain region in the amount of customer-oriented functions.
$314,998,437.

Z ions F irst N a tio n a l
T o E stablish B ranch
The Zions First National Bank of
Salt Lake City has received approval
of its application to establish a branch
bank.

A p p lica tio n s A re F iled
F o r B ran ch R elo ca tio n
The Seattle-First National Bank and
the National Bank of Commerce of
Seattle have filed applications for
branch relocation.

T o E stablish B ranch B ank
F irst S ecu rity A n n o u n c e s
S ix C hanges in Staff
Officials of the First Security Bank
of Utah, Salt Lake City, have an­
nounced the following staff changes:
Jerry A. Duffin, formerly assistant
manager, Sugar House office, has been
elected assistant vice president and
manager, Eighth South office.

\\ ash ington NE WS

Expands with BISNET
part of a program to expand its
A Scustomer
services and “meet the
challenges of the Seventies,” Seattle-

The Bank of Cowlitz County, Long­
view, has received approval from The
Regional Administrator of National
Banks to establish a branch bank.

P a cific N a tio n a l P r o m o tio n s
Officials of the Pacific National
Bank of Washington, Seattle, have an­
nounced the following changes in staff:
Douglas R. Pringle, named vice
president;
Raymond C. Graves, appointed
manager of the McKinley Hill Banking
Center in Tacoma;
Barrie G. Knight, named manager
of the Eleventh and K Street Banking
Center, Tacoma;
Fred Satoris, named manager of the
Gig Harbor Banking Center;
Harold M. Wilson, Jr., assistant vice
president and trust officer, named to
head trust probate activity for the bank.
Mr. Wilson will be responsible for ad­
ministration of probate affairs for all
61 banking centers of Pacific National ^
statewide and will have direct super­
vision of trust probate resources and
personnel in the Seattle trust offices.
N o rth w e ste rn B a n ke r

Bank Women Elect Officers for 1972-73
Barbara Pendleton to Be President
arbara

pen d leto n ,

vice

president, Grand Avenue Bank
B
& Trust Company, Kansas City, Mo.,
has been elected president of the Na­
tional Association of Bank-Women
Inc. for the 1972-73 term.

B. PENDLETON

-

J. E. WOFFORD

Announcement of the election of
Miss Pendleton and other national of­
ficers of the 9,500-member organiza­
tion was made in Chicago by outgoing
NABW President Ruth D. Harrison,
assistant vice president of the Irwin
Union Bank and Trust Company, Co­
lumbus, Ind. Mrs. Harrison will pre­
side at the installation of the new offi­
cers, which will take place during NABW’s Golden Anniversary Convention,
slated for Chicago’s Palmer House,
September 17-21.
Other officers assuming NABW
leadership at that time with Miss Pen­
dleton will be: vice president — Mrs.
Jean G. Wofford, assistant vice presi­
dent, The First National Bank of South
Carolina, Spartanburg; recording sec­
retary — Mrs. Rose A. Ellerman,
executive vice president, North Kan­
sas City State Bank, North Kansas
City, Mo.; corresponding secretary —
Miss Kay Moorman, cashier, National
Bank of Tulsa, Okla.; and treasurer
— Mrs. Anne L. Gormer, director,
vice president and secretary. Liberty
Trust Company of Maryland, Cumber­
land, Md.
Also newly-elected and slated to be
installed during convention ceremo­
nies are 15 regional vice presidents,
each with the responsibility for coordinating activities of NABW groups in
her area. They include: Greta M.
Grafton, vice president, Central Na­
tional Bank of Muttoon, 111., Lake Re­
gion, Ruth L. Smith, vice president
and cashier, Tower State Bank, Kan­
sas City, Kan., Midwest Region, Mrs.
Ruth L. Harris, trust officer, Farmers
& Merchants Bank, Las Cruces, N. M.,
Rocky Mountain, and Maxine Turner,

S e p te m b e r, 1 9 7 2
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Federal Reserve Bank of St. Louis

assistant cashier, Bank of America
N.T. & S.A., Richmond, Cal., Western.

V alley N a tio n a l, P h o e n ix
Issues $ 3 0 M illion N otes
The president of the Valley Nation­
al Bank, Earl L. Bimson, announced
that the bank has increased its capital
by $30 million through the issuance of
capital notes due November 15, 1979.
The notes, which were placed privately
with Mellon National Bank and Trust
Company of Pittsburgh, Pennsylvania,
may be prepaid without penalty at any
time at the Valley National Bank’s op­
tion. No fees or balance requirements
were incurred by the Phoenix bank in
obtaining the capital funds.

CREATING NEW MARKET . . .
(Continued from page 56)
check or savings accounts and vice
versa. It is a fairly complex, yet feasi­
ble procedure. While it is, initially, an
expensive investment, in the long run
it would be more economical than the
establishment of multitudes of brick
and mortar facilities. It is also a viable
competitive tool to meet the challenge
of the thrift industries’ “mini-banks”.
It is a way to meet the needs of the
consumer — economically and con­
veniently. But, where does this leave
small banks, possibly without the re­
sources to invest in dozens of these Fi­
nancial Convenience Centers?
I believe that we have a practical an­
swer. That answer is analogous to our
traditional practice of bnking by mail.
The mail box serves all. Bank custom­
ers from all banks use a common mail
box as a conduit for deposits and com­
munications. Each bank does not need
its own mail box for its own custom­
ers; each bank does not need its own
telephone system for communication
with its own customers; each bank
does not need its own credit card im­
printers at merchant locations for its
own customers; and each bank, ac­
cordingly can share in the usage of the
remote terminals which I like to call
Financial Convenience Centers.
A small bank, by prearrangement
with a separate (credit card associa­

tion type) operating corporation, can
provide its customers with access to
these Financial Convenience Centers.
They can be located in airports, super­
markets, shopping centers, and people
centers of all sorts. Some would op­
erate 7 days a week and 24 hours a
day. And each bank’s customers will
find convenient access to 80% to 90%
of their banking needs in this ubiqui­
tous, jointly sponsored financial utility.
Each bank will pay for its pro-rata
share of the cost of each center in ac­
cordance with the usage that its cus­
tomers make of it.
If you are a small out-state bank,
your customers can be accommodated
at a major airport in a distant city.
Your bank will be there!
Joint Ownership
Obviously the unique feature of this
proposal is the joint ownership of a
system of Financial Convenience Cen­
ters which will enable both large and
small banks to reach their customers
practically everywhere and at any time.
This system of jointly sponsored cus­
tomer convenience is not only more
economical than the current branch
bank system of brick and mortar lo­
cations, it is far more convenient for
the customer.
Individual banks will still retain
their own image, their individuality,
and their individual appeal. They will
employ their own marketing tech­
niques, their individual customer rela­
tions programs, and their independ­
ent rates and lines of credit which they
will provide directly to their customers.
There will be opportunities to counsel
and negotiate with customers in the
bank itself.
Small unit banks, will have an equal
opportunity to compete with larger
banks in the world of Financial Con­
venience Centers. I would suggest that
you take this proposal for a jointly
sponsored program of Financial Con­
venience Centers seriously by appoint­
ing a task force to review its potential.
I would suggest that it might be your
only way to complete effectively be­
cause, in the long run, it really pro­
vides the customer with a worthwhile
service. And, it could provide you with
the most economical outlet to give him
that service.
One last thing, if you will but pic­
ture this Financial Convenience Center
located near the main entrance of an
airport terminal for example, ask your­
self if such facility is a branch. If so,
whose branch is it?— End.
97

...AND IN

THE BANK

WE TRUST

300

Over^SC^banks in 10 states put their TRUST in
us! How about You?

u.s.
★

★

★

NATIONAL

BANK
OMAHA

98
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Federal Reserve Bank of St. Louis

N o rth w e ste rn B a n ke r

W illard A. Krueger, vice-president of
m arketing for A m erican Breeders Serv­
ice, a division of W. R. G race & Co.
His territory of operation is composed
of the State of N ebraska, where he
will assist in the com pany’s develop­
ment of this area.
M r. C ham bers becam e an Am erican
Breeders Service Rancher R epresenta­
tive in 1966 and has assisted in the
successful prom otion of the Direct
H erd Program in Eagle, Colo.

Nebraska
NEWS
R. E. EMMETT

President

W . H. OSTERBERG

Exec. Mgr.

 rapahee
Omahe

Announce Nebraska Group Program

P

R O G R A M details have been an­
nounced for the series of six annual
group m eetings to be held in N ebraska
in Septem ber. All m eetings will start
at 2 P.M . H ere is the form at for the
1972 meetings:
2 p.m. Registration.
3 p.m. Business Session.
“C urren t D evelopm ents”— R oland
E. E m m ett, president, N ebraska B ank­
ers A ssociation, Inc., president, C iti­
zens State B ank, A rapahoe.
“R em arks”— H enry Ley, N ebraska
director of banking, Lincoln.
“N ebraska
Independent
College
F o u n d atio n ”— H ow ard
B.
Dooley,
president, N ebras­
ka I n d e p e n d e n t
College F o u n d a ­
tion, O m aha.
“F H A F in an c­
ing R u ral Devel­
opm ent in N ebras­
ka”— D. D. “B ud”
R i b 1 e 11, chief
farm er program s
division, F arm ers
Group l
Hom e
A dm inis­
tration, Lincoln.

L. McMASTER
Group 3

L. GALLATIN
Group 4

7 5 th A n n iversary N oted
W ith O pen H o u se at Crete

D. D. RIBLETT

H. E. LEY

“ U pdate 1972”— W illiam B. Brandt,
N B A Legal Counsel, U nadilla.
“F ederal L egislation and A ssocia­
tion R eorganization”— W illiam H. Osterberg, executive m anager, N ebraska
B ankers A ssociation, Inc.
Election of Officers.
“M ore T han M oney”— Preview of
new N B A film.
“We A re in The People Business”—
C avett R obert, Phoenix, Ariz.
5:30 p.m. Social H our.
6:30 p.m. Banquet.

A p p o in te d in N eb rask a
D onald R. C ham bers has recently
been appointed district sales coordina­
tor according to an announcem ent by

A. E. MASTERS
Group 5

J. T. SELZER
Group 6

T he C rete State Bank recently cele­
brated its 75th anniversary with a
week-long open house.
The C rete State B ank was organized
in 1897 with $50,000 capital. Today,
under the direction of President
T hom as J. A ron, the bank has over
$600,000 in capital and surplus ac­
counts and m ore than $9 m illion in de­
posits. M r. A ron is well known in N e­
braska banking circles, being a form er
president of the N ebraska Bankers A s­
sociation.

M asilko N a m ed C ashier at
F irst o f W est P o in t
M ichael E. M asilko has been nam ed
cashier at the First N ational Bank of
W est Point. The announcem ent was
m ade by Eldon
G. Freudenburg,
bank president.
M r. M a s ilk o
was formerly vice
p r e s i d e n t and
c a s h i e r at the
F i r s t N ational
Bank of Om aha.
A g r a d u a t e of
O m a h a Benson
M E m a s il k o
High School and
the University of Wisconsin G raduate
School of Banking, he had spent 22
years in the operations field with the
First of O m aha. He also has an exten­
sive background in the field of elec­
tronic data processing.

1972 Nebraska Group Meetings
G roup

6
4
5
3

2
I

Septem ber, 1972
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Date

Sept.
Sept.
Sept.
Sept.
Sept.
Sept.

19
20
21
26
27
28

Place

Scottsbluff
McCook
Kearney
Norfolk
Fremont
Lincoln

Site

Elks Club
Elks Club
Holiday Inn
Elks Club
Valley View Country Club
Radisson-Cornhusker Hotel

99

Omaha News

S

TU D EN TS from M exico City were
in O m aha recently tracing the path
of international finance. T he to u r was
coordinated by the international de­
partm ent of the O m aha N ational Bank.
The 19 M exican high school stu­
dents were actually returning the visit
of 19 D istrict 66 students from Valley
View Ju n io r High to M exico City.
The O m ahans stayed w ith M exican
families during their three-w eek trip,
which was arranged as a project of
Mrs. W illiam H arvey’s Spanish class
at Valley View. M r. and M rs. H arvey
chaperoned the study tour. L ast week
the M exican youngsters whose fam ilies
had hosted the Valley View students
returned with the O m ahans.
T he students visited a M exico City
bank which w orks closely the O m aha
N ational and later visited the N ebraska
bank in order to learn about interna­
tional m onetary cooperation. T he p ro j­
ect was supervised by Jack B. W heeler,
an O m aha N ational vice-president,
whose son, Bob, was am ong the stu­
dents visiting M exico City.
Before returning hom e, the M exican

students also visited the Strategic Air
C om m and’s underground com m and
post at Offutt A ir Force Base.
❖
* *
Morton A. Richards, chief executive
officer of S. Riekes & Sons, and Mrs.
Jean Gallagher Young, a director and
form er chairm an of the board of the
W estern W ine and L iquor Com pany,
have been elected to the board of di­
rectors of the U nited States N ational
Bank. T he announcem ent was m ade
by President Edward W. Lyman.

J. G. YOUN G

M. A. RICHARDS

M r. R ichards joined S. Riekes and
Sons in 1933 and has served as general
m anager, secretary-treasurer, presi­
dent, and chief executive officer over

the years. H e has also been active in
m any civic and religious organizations.
M rs. Y oung has been a director of
W estern W ine and L iquor since 1953,
and has also been active in the civic
com m unity. A m ong her various busi­
ness interests she owned O m aha
Bakers Supply C om pany and served
as an officer with the Cam pbell Soup
Com pany.
* * *
F irst N ational Leasing, Inc., an op­
erating affiliate of the F irst N ational
Bank, has been form ed to rent office
machines and furniture, data process­
ing systems, hospital equipm ent and
m achine tools to businesses in N ebras­
ka and surrounding states, according
to officials.
F irst N ational is the first bank in
N ebraska, Iowa or South D akota to
actively solicit leasing custom ers, said
Mike Keim, a senior officer in the new
corporation.
M r. Keim said the firm provides a
free com puter analysis to see w hether
it would be m ore econom ical for a
com pany to lease newr equipm ent, take
out a loan for it or purchase it outright.
If the com pany decides on a leasing
arrangem ent, it gives the exact equip­
m ent order to the leasing com pany
which then purchases it, he said.

Michael Rooney has been prom oted
to cashier at the First N ational Bank
of Om aha.
Mr. R o o n e y
joined the bank in
O ctober 1968 and
has worked in the
p ro o f/tran sit area
and as operations
officer. H e had
previously worked
at the Security
N ational B a n k
M. ROONEY
and the First N a­
tional Bank of
Sioux City.
*

*

*

The Board of D irectors of the Se­
curity N ational B ank has announced
eight prom otions.
Elected vice president was Paul V.
Shirley, Jr. N am ed assistant vice pres­
idents were W. J. Anderson, install­
m ent loans; G. R. Lorenzen, opera­
tions; and Miss Grace Sedlacek, secre­
tary. A ssistant cashiers are R. John

MEXICAN students tour Omaha National Bank with their Omahan friends.

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100
Federal Reserve Bank of St. Louis

Burford, Jr., Mrs. Alta Davidson, Mrs.
Rosemary Hansen and Steven E.
Mashek.
N o rth w e ste rn B a n ke r

Our cattleman is a loaner.
Our Andy Harris is a cattleman and a banker. He’s a special kind of
banker, one who loans money to banks as well as to individuals.
At times local banks need extra funds to meet their loan demands,
and The Omaha National Bank is there to back them.
We re prepared to loan up to seven-figure am ounts when necessary,
and this is why three out of fo ur Nebraska banks are correspondents
of The Omaha National Bank.
This powerful network of local banks, all w orking together, has
made animal agriculture Nebraska’s most im portant industry.
A sk for D ave Jo h n so n , A n d y Harris, M arv Ro hn , C o n
Norm an, J a c k B a b co c k , D el O lson, Keith Lytle, Tom
M atthaidess, D e n n is W ood. Ken Strother, or Jo h n
Nigh. They k n o w b a n k in g a n d agriculture.

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Om aha National
helps people like you

101

which ranged from 20 to 50 per cent,
were offered one to a custom er.
T he first person in line arrived at
7:30 the night before. A check at m id­
night th at night disclosed 22 persons
sitting in lawn chairs, watching televi­
sion or propped against a pillar. M ore
than 4,000 were waiting when the
doors open at 9:30 a.m.
* * *

MORE than 4,000 stand in line for a bargain on money at the First National of Omaha.
A s p a rt of a dow ntow n sidewalk sale
Chess players, Jesus people, postal
prom otion, the bank offered $10,000
clerks and thousands of other people
in cash at discount prices. The first 25
were waiting w hen the F irst N ational
persons w ith $80, for exam ple, re­
B ank of O m aha opened its doors re­
ceived $100. The next got $50 for $40.
cently.
T he people had com e to the b an k ’s The give-away ranged down to a silver
dollar for 50^. The
mark-downs
“m oney sale.”

Roy G. Leibee has joined C. W illiam
Daly and Co., an O m aha investment
security firm, as a regional representa­
tive.
Mr. Leibee was
form erly
zone
m anager of Bur­
roughs. T hrough­
out his career he
has been calling
on N e b r a s k a
banks.
A n a t i v e of
Kearney, M r. Lei­
R. G. LEIBEE
bee g r a d u a t e d
from the University of N ebraska with a
BS in business adm inistration. H e had
been with B urroughs since 1956 and
had w orked in several other N ebraska
offices before heading the zone office
in Om aha.

\bur business depends on it.
S o does ours.
M ay w e serve you?

Chiles, H eider &Co., I nc.
MEMBER NEW' YORK STOCK EXCHANGE, INC.
1300 WOODMEN TOWER
OMAHA. NEBRASKA (.8102 « (402) 346-6677

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Federal Reserve Bank of St. Louis

N o rth w e ste rn B a n ker

Call Paul Mauer in our
Installment Loan Department
He’s a member of the full service correspondent
bank team, anxious to help you in any way he can ­
making your installm ent loan department meet
today’s custom er requirements and helping you to
streamline it for more profitable operation. Cal!
him or any of the others pictured b e lo w ...a t (402)
734-1234...for prompt, knowledgeable service.

Northwestern
U3 National
Ü Bank
O m aha, N e b ra sk a

Frank Sibert

Bill Graves

V ic e P r e s id e n t

V ic e P r e s id e n t

Omaha, Nebraska
402-734-1234

Digitized
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Paul Mauer

Dan Rlshel

V ic e P r e s id e n t

A s s t. V ic e P r e s id e n t

Member F.D.I.C.

103

Kenneth D. “Tony” Roth has been
elected to the board of directors of the
Douglas C ounty B ank and T ru st C om ­
pany. M r. R o th is the president of
Param ount F u rn itu re and A ppliance,
Inc.
*

*

*

Deposits and Loans
( Figures to nearest hundred thousandth
for all Omaha hanks as of June 30,
1972. Last three 0 0 0 ’s are om itted )

Deposits
O m aha N atl . . . $386,059
U. S. N atl........... 201,837
F irst N a tl............ 184,900
63,432
N. W. N atl..........
45,516
C enter ...............
First W. Side . . 40,180
34,474
S o u th w e s t..........
N orth Side . . . . 29,314
Douglas County
29,221
B&T . .............
Packers N atl . . . 26,253
W est O m aha
N atl..................
20,634
17,332
Security Natl. . .
Ames Plaza . . . . 13,022
First W estroads .
7,598
Mid City ..........
6,080
O m aha State . .
2,605

Loans
$311,803
147,092
139,092
42,498
30,785
25,107
21,858
15,897
19,245
12,330
11,434
9,272
9,637
6,356
4,507
1,710

C oziahr J o in s C o m m ercia l
N a tio n a l B ank a n d T ru st
T he board of directors of the C om ­
m ercial N ational Bank and T rust Com­
pany of G rand Island has announced
the
employment
of Jason E. C o­
ziahr as com m er­
cial loan officer.
Mr. C o z ia h r
has been a com ­
mercial loan of­
ficer and security
officer at the First
N ational Bank of
M onticello, Ind.,
J. E. CO ZIAH R
for the past five
years. He is a graduate of the A m eri­
can Institute of Banking in O m aha and
has just com pleted the G raduate School
of B anking at the University of W is­
consin.

D elay F irst N a tio n a l
T o C han ge Its N am e
A certificate has been issued to T he
DeLay F irst N ational Bank of N orfolk
to change its nam e to T he DeLay First
N ational Bank & T rust Com pany.

BA I D irecto r N a m ed
Eugene W. “ G ene” Bortz, president

of the Bank of Panam a, has been
nam ed a state director of the B ank A d ­
m inistration Institute for a tw o-year
term . H e will serve as liaison officer
to local BA I chapters, district direc­
tors and national organization.

ABA O p p o ses Im p o r t B ill
A bill which w ould restrict both ex­
ports by U.S. industry and im ports
from foreign m anufacturers is being
opposed by the A m erican Bankers
Association.
A BA President A llen P. Stults said
the association feels the proposed
Foreign T rad e and Investm ent A ct of L
1972 m ay “have an adverse im pact on
U.S. interests in international busi­
ness.”
Proposed by Sen. V ance H artke,
D -Ind., and co-sponsored by Rep.
Jam es Burke, D-M ass., the bill (S.
2592) would: im pose U.S. incom e
taxes on foreign earnings w hether or
not distributed; repeal U.S. tax credit
for foreign taxes paid; abolish ac­
celerated depreciation for overseas
property; tax transfers of patents, even
to wholly owned subsidiaries; au­
thorize the President to restrict exports
of capital and technology; and freeze
im ports under a quota system at a level
40 percent below 1971 totals.

Look for these familiar faces
at the GROUP MEETINGS
in NEBRASKA and SOUTH DAKOTA

Ed Newell

Jim McGill

It's Group Meeting time again, and Ed and Jim are looking forward
to greeting their many friends in Nebraska and South Dakota. By
attending the Group Meetings regularly, talking to bankers face to
face, Northwestern National continues to be your dependable cor­
respondent.
NORTHWESTERN NATIONAL BANK OF SIOUX CITY, IOWA

W

Nebraska News
104
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Federal Reserve Bank of St. Louis

N o rth w e ste rn B a n ke r

At the
National Bank
of Commerce.

Talk turkey with us and we know you mean business, not
w hat’s for supper. We understand farm talk. “ L o ft” is a hay­
mow, not a warehouse. “ W hite” is Leghorn, not collar. And
“ yellow ” is corn, not a cab.
At the National Bank of Commerce in Lincoln you don't have
to tell us how im portant livestock is. We know that there are
more than 6,000,000 cattle in Nebraska. We also know that
Nebraska ranks second in the number of cattle on feed, some
3.5 m illion head.
Our Correspondent Banking and Loan Department provides
a wide range of services, many of them directed toward
Nebraska’s number one industry, agriculture. Talk to W ilbur
Baack or Harold Stuckey. They talk your kind of language.

'--.v .

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105

28th A nnual Feeder C alf Show a n d Sale
Scheduled fo r Omaha , October 25-26

C

H A R L E S W. O ’R ourke, vice
president, U nion Stock Y ards
Com pany of O m aha, announces O m a­
h a’s 28th A nnual F eed er Calf Show
and Sale. T he event will be held O cto­
ber 25 and 26. T here will be four
breeds com peting . . . . Angus, H ere­
ford, Shorthorn, and C harolais.
This annual event is recognized as
the top one of its kind in the C orn Belt
area. It is designed to accom m odate
both buyers and sellers. Producers are
afforded a m eans of showing their top-

O

B———J

1

m a h a

)

R IN T IN G

quality calves to 4-H and F .F .A . m em ­
bers, as well as to com m ercial feeders,
at the gateway to the Corn Belt. 4-H
and F .F .A . m em bers aw ait this sale
to purchase feeder calves for their
B aby Beef projects.
Tw enty head . . . . steer or heifer
calves . . . . will constitute an entry.
(F o r com petition, entries m ust be of
one sex.) There is no lim it as to the
num ber of entries by one individual.
Calves will be judged com m encing at
9:00 a.m., W ednesday, O ctober 25 in
1 1 4 YEARS OF SERVICE

|

Servicing the M id-States A rea
Since 1858

j'

i,1

THE COMPLETE BANK SUPPLIER
EDP Supplies
Data Processing Supplies & Furniture
Microform Retention & Retrieval Systems
Office Supplies
Office Furniture
Computer Forms— Bank Forms— Printing

1301 FARNAM ST. — OMAHA, NEBRASKA — PHONE 342-7123

A

Year

Old..a. nd Going

mmmm.
C. W illiam Daly

mA
Robert Kirkend all

Phil loren zen

Mike Van Horne

We've started on our second year. We want to
serve you even better in this year.
We'll see you at the Nebraska Group Meetings,
and in the coming months, with fresh, innovative
ideas and top service; and
Introduce you to the latest addition to our grow­
ing staff, Roy G . Leibee.
Roy

C .

W

i n v e s t m e n t
1816 D O U G L A S S T R E E T

D

i l l ia m


106
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Federal Reserve Bank of St. Louis

*

&

Leibee

C ü .

s e c u r i t i e s

O M A H A , N E B R A S K A 68102

MUNICIPAL BONDS

a l y

G.

STOCKS

(402) 346-8900

MUTUAL FUNDS

the sales arena. T he sale will start at
9 :0 0 a.m ., Thursday, O ctober 26.
Only those calves awarded blue rib­
bons will be sold that day. A ll others
not receiving blue ribbons will be sold
on Friday, O ctober 27 at the beginning
of a special carload auction sale.
Consignors who receive a blue rib­
bon on a pen-of-tw enty calves will
have the privilege of selling five head
as individuals. T he rem aining fifteen
m ust be sold in lots of five.
Prem ium money totaling $2,905 will
be offered. Entries m ust be aw arded
blue ribbons to be eligible for prem i­
um money. C ash aw ards will be paid
to six places for each breed in the steer
class and to four places in the heifer
class. T he cash prizes will be furnished
by the U nion Stock Y ards C om pany
of O m aha, O m aha Livestock E x­
change, A m erican A ngus A ssociation,
A m erican
H ereford
A ssociation,
A m erican Shorthorn A ssociation, and
A m erican-International C harolais A s­
sociation.
Plaques will be aw arded by the U n­
ion Stock Y ards Com pany of O m aha
to the G rand C ham pion and Reserve
G rand C ham pion loads of steers and
heifers. A special trophy will again be
aw arded the G rand C ham pion of the
Show by the N orthw estern N ational
Bank, O m aha. A lso, the Angus, H ere­
ford, Shorthorn, and C harolais A ssoci­
ations will aw ard trophies for the
cham pionship steers and the cham ­
pionship heifers in their respective
breeds.
Judges for the calf show com e from
three states. T hey are: Dr. D on L.
G ood, head, D epartm ent of A nim al
H usbandry, K ansas State University,
M anhattan, K an.; Orville Kalsem, a
cattle feeder from Huxley, la., and vice
president of the A m erican N ational
C attlem en’s A ssociation, and John
K roner, a cattle feeder from M ahom et,
111. A ll are well-known, experienced
judges. The auctioneer will be Colonel
D ick Kane, W isner, N ebr.
The arena in which the sale will be
held is heated for the com fort of the
patrons and will accom m odate over
1,000 persons. Each year it has been
filled to capacity with buyers from
m ost of the C orn Belt states. These
buyers appreciate good quality and will
pay a top price to get w hat they want.
L ast year over 100 individuals p u r­
chased club calves at the sale.
Past shows and sales have draw n en­
tries from C olorado, W yoming, Idaho,
M ontana, N ebraska, and South D ako­
ta.
N o rth w e ste rn B a n k e r

RICH BREYFOGLE

STAN FREDERICKS

we will look forward to
seeing you at the

Nebraska and South Dakota
Group Meetings

TOY NATIONAL BANK □ SIOUX CITY, IOWA 51102
Septem ber,
1972

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

107

agency service provided through Joe
M orten & son in South Sioux City,
N ebr., G reat W est U nderwriters, and
its other subsidiary agency, M otor
Ways, Inc. of Des M oines, la.
*
*

Lincoln News

T T O R N E Y John H . Binning has
been elected president of T he
G reater N ebraska C orporation.
M r. Binning is
a form er assistant
attorney general
for the State of
N ebraska. He will
succeed H . A.
Zethren, who will
retire on O ctober
1 but will rem ain
on the board of
directors.
J. H. BINNING
A partner in
the firm of Crosby, Pansing, Guenzel
& Binning since 1959, M r. Binning has
practiced law dealing principally with
insurance com pany corporate and
regulatory m atters.
T he G reater N ebraska C orporation,
which owns subsidiary com panies in
life, fire and casualty insurance busi­
nesses and in o ther financial service
oriented corporations, showed a net
profit of $928,299 or 20 cents per
share earnings in 1971, the com pany’s

A

biggest year. F irst quarter earnings for
1972 were 40% greater than for the
same period in 1971.
The subsidiaries are: Lincoln Bene­
fit Life Com pany and G N C Services,
Inc., Lincoln; Protective F ire and
Casualty Company, Seward, Nebr.,
G reat West Casualty C om pany, Joe
M orten & Son, Inc., G reat W est U n­
derw riters, Inc., N ational A djustm ent
Co., Inc.
T he G reater N ebraska C orporation
reported net earnings of $657,520 or
14 cents per share for the first six
m onths of 1972. This was a 16 per
cent increase from earnings for the
sam e period last year.
C om bined assets of all G N C subsid­
iaries have grown to $26,254,000 at
the end of the first six m onths, a 20 per
cent increase. T he total retained earn­
ings are $2,307,570.
G N C also reported the recent p u r­
chase of Midwest Insurance, Inc., a
G rand Island agency. T he principal
purpose of this acquisition was to
broaden the long haul truck insurance

L e t M e H e lp Y o u
W it h Y o u r
C r e d it In s u r a n c e N e e d s
Group

•

Individual Life

•

Accident & Health

T .Q .* Service on our W ATS Line in
N ebraska. Dial your Access Code, then
800— 742-7335.

*Telephone-Quick.

THE LINCOLN ( o B n e fc t COMPANY
LINCOLN BENEFIT LIFE BUILDING • LINCOLN, NEBRASKA 68508
A member of The Greater Nebraska Corporation

108
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Federal Reserve Bank of St. Louis

Circle No. 28 For More Information

National Bank of Commerce June
30th figures reflect an increase in as­
sets, deposits, loans and revenue over
the corresponding six-month period of
1971.
The m id-year report by President
Paul Amen noted that loan demand
increased from $95.1 m illion to $108.2
million, 72.8% of total deposits com ­
pared to 67.6% a year ago. T otal de­
posits grew from $140,670,000 to
$148,604,000 and total assets grew
from $165,276,000 to $177,398,000.
T he greatest grow th in deposits con­
tinued to be in savings dollars, which
m eans paym ent of m ore interest to
savings depositors. Interest paid for the
first six m onths of 1972 was $1,874,000 com pared to $1,556,000 a year
ago, according to the report.
N et operating earnings for the six
m onths ending June 30 were $822,974 com pared with $761,615 for the
six-m onth period ending June 30,
1971. N et incom e after securities gains
or losses, was 815,780 for 1972 as
com pared to $711,233 for 1972 or a
gain of 14.6% over the first six m onths
of last year.
*

*

*

Lincoln Bank South has announced
that its June 30th figures reflect an in­
crease in assets, deposits, loans and net
incom e over the corresponding sixm onth period of 1971.
L oan dem and increased from $3,326,806 to $4,269,570, a 28% in­
crease over 1971, according to the
m id-year report by President Roger

Gohde.
N et operating earnings for the six
m onths ending June 30, 1972 were
$36,606 as com pared to $30,182 for
the six m onth period in 1971. N et in­
com e after net securities gains or losses
increased 22% up to $37,261 com ­
pared to $30,560 for the 1971 period.
A ccording to M r. G ohde, the in­
crease in net incom e for the first six
m onths of 1972 was due principally
to the heavy loan dem and experienced
in the consum er m arket area. W ith the
grow th in deposit dollars and the con­
tinued dem and for lendable dollars,
1972 for Lincoln Bank South should
continue to be one of its best years in
history, he said.
N o rth w e ste rn B a n ke r

M ore than 25 years o f
experience in planning and
conducting vacation tours...
O u r L incoln T o u r & T rav el D ivision offers to you and
your cu sto m ers w hat has to be one o f the m ost
com p reh en siv e selections o f v acation to u rs y o u ’ll find
anyw here. T o virtually any place on P lanet E arth.
T h ey know the in teresting and scenic ro u tes to
ev ery w h ere. B ecause, in th eir m ore than 25 y ears o f
being in the to u r and travel business, th e y ’ve been
nearly ev ery w h ere.
Equally im portant is the fact th ey recognize th at
vacation to u rs should allow people plenty o f free tim e
to relax —and to enjoy th em selves. So, they plan
every to u r accordingly.
N e x t tim e y o u ’re planning a vacation —o r you have a
c u sto m er w ho is —we invite you to check w ith our
L incoln T o u r & T rav el D ivision. T h e y ’ll be delighted
to send you descrip tiv e b ro ch u res on a w ide variety o f
d om estic and international to u rs and cruises th a t have
been carefully planned to please even the m ost
dem anding traveler. O r, they will develop an individual
foreign to u r for you th at will m eet y o u r m ost
exacting dem ands.
M argins o f difference in service that benefit you and
yo u r cu sto m ers —th a t’s w hat we strive to provide.

A m argin
F IR S T
N A T IO N A L
BANK
L IN C O L N
Box 81008 —Lincoln, Nebraska 68501 Member, F.D.l.C.
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109

N BC Co. earnings w ere $1.13 per
share for the six-m onth period ending
June 30th com pared to $.95 fo r the
same period in 1971, according to
Glenn Yaussi, president.
H e said th at net income for the pe­
riod was $822,972. This is up from
$688,745 for the sam e period in 1971.
In his letter to stockholders, M r.
Yaussi said they were still awaiting ap­
proval from the F ederal Reserve B oard
on the proposed purchase of M utual
Savings Com pany. A pproval was ex­
pected in the next 60 to 90 days.

Veteran Livestock Banker

( C ontinued from page 4 3 )
increasing in weight, which helps to the cattle w hen they are ready for m ar­
ket, will be successful as has been
increase the tonnage of m arketable
meat, which further depresses the m ar­ proved to me thousands of tim es d u r­
ket. Following your original plan of ing my long service w ith the bank.
Small Lots Will Survive
m arketing will w ork best for you, m ost
I am not as concerned about the
of the time.
T h ere was a tim e when the sloppy large feed lots driving the good small
o perator could eke out a living on the operator out of business as some peo­
farm , but this tim e has passed. The ple are. R em em ber, the sm all operator
good operator, one who buys his cattle raises m ost of his feed, has his pasture
right, gets good feed conversion, in­ and roughage and is his own m anager.
spects the cattle at least once a day, is The large feed lots have to pay for all
these items and a huge am ount for la­
careful w ith small details and m arkets
bor and m anagem ent.
I believe it is only the livestock in­
dustry th at m aintains the high level of
prosperity we enjoy in our area. Crop
farm ing alone will not w ork in our lo­
cality in this age of high living and op­
eration costs.
E ven w hen we occasionally have a
crop failure or a p artial failure the
good livestock operators are able to
$100,000,000 State of Illinois
$150,000,000 State of Illinois
purchase feed and m ake a profit. W ith­
Anti-pollution Bonds,
Trans. Bonds Series
out the feeders our area w ould be in
A & B of 19 71
Series A.
trouble in years of po o r crops. Feeding
$25,000,000
Omaha-Douglas County
$4,100,000
City of Tama, Iowa
of cattle and hogs is an excellent com ­
Nebraska
Public
Bldg.
IDR Bonds, Series 19 71
bination for profit. We m ust rem em ber
Commission
$22,000,000
Douglas County, Nebr.
in our area th at we are all farm ers.
$6,000,000
Lincoln, Nebraska
Hospital Authority No.
W hen the farm er is prosperous, the
Airport Authority
1 Bonds, Series 1972
town and city dwellers share in his
Series 1972
$225,000
prosperity.
Columbus, Nebraska
$285,000
Kearney, Nebraska
Airport Authority Bonds
In recent years m any of our farm ers
Various Purpose Bonds
are
building up a cow-calf operation,
$1,185,000
Arlington,
Nebraska
$485,000
Grand Island, Nebraska
which in m ost cases is profitable, espe­
School Bonds
Various Purpose Bonds
cially w ith the high cost of replacem ent
$1,500,000
Bellevue, Nebraska
$51,180,000
Illinois Building
cattle. W e have encouraged it.
General Obligation
Authority Bonds
School Bonds
T he present all tim e high m arket
$360,000
Kearney, Nebraska
$12,000,000
value of both cattle and hogs is a per­
University of Nebraska
General Obligation
Facilities Corp.
fect exam ple of w hat I have tried to
Bonds
(Field House Project)
point out in this article. Supply and de­
m and is the controlling factor in these
extremely high prices, and, in my opin­
ion, as previously stated, always will
be.
1 might add credit is readily availa­
ble for the good operator. W e owe
m uch to the livestock feeders and we
1 160 Omaho Building
4 Ö2— 345-7 000
Omaha, Nebraska
salute them for their h ard w ork and
ability. — End

WE HAVE RECENTLY MANAGED OR PARTICIPATED IN
UNDERWRITING THE FOLLOWING BOND ISSUES:

United States Check Book Company
P.

O . BOX 3 6 4 4

Ä COMPLETE

110
N eb ra ska N ew s
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Federal Reserve Bank of St. Louis

OMAHA,

BANK

NEBRAS KA

68103

SUPPLIER

N o rth w e ste rn B a n k e r

Call us. 816/221-2800

F ir s t K C
First National Bank of Kansas City


S e p te m b e r, 19 7 7
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Federal Reserve Bank of St. Louis

111

Beatrice Bank Holds Open House to View Rem odeling

NEW Quarters for the Beatrice National Bank and Trust Company.

C all B e n to n , J o h n o r E arl a t 2 7 9 -2 7 2 4 ,
a re a c o d e 816, a n d te ll h im w h a t
y o u r o v e r lin e n e e d s are. Y o u ’ll get
a n a n s w e r. Y ou see, at T h e F irs t
N a tio n a l B a n k w e m a k e o u r c o r­
r e s p o n d e n t b a n k in g s e rv ic e s as
th o ro u g h a n d c o n v e n ie n t as
p o s s ib le .
N o w ju s t p ic k u p th e p h o n e
a n d c a ll o n e o f o u r c o r r e ­
s p o n d e n tb a n k in g r e p r e s e n ­
ta tiv e s . L et u s a s s is t y o u in
w o rk in g w ith y o u r c u s ­
to m e rs .
C all T h e F irs t N a tio n a l B a n k fo r
a n o v e rlin e to d a y . B e n to n , J o h n o r
E arl w o n ’t k e e p y o u , o r y o u r c u s to m
ers, w a itin g .

A n open house was held in Beatrice
last m onth for custom ers and friends
of the bank to view the newly rem od­
eled Beatrice N ational Bank building.
The rem odeled lobby area is one of
the m ost distinctive features of the
building, being dom inated by a rotun­
da, a m odern artistic designed lighting
fixture containing over 150 pieces of
m aterial. A lso located in the lobby
area are the desks and offices of sev­
eral of the bank’s officers located there
for easy custom er access.
A nother feature of the bank is the
expanded safety deposit box area. 200
square feet have been added, and 326
new boxes have been provided, all
double-keyed.
A large lounge area for custom ers
is also featured. T he exterior of the
safety deposit box area is of R om an
Traveltine m arble, and m any of the
walls in the offices of the bank are cov­
ered w ith grass cloth.
W illiam W . C ook, Sr., is chairm an
and chief executive officer of the bank.
H e joined the bank in 1933 and was
nam ed president of the bank in 1957.
H e resigned th at post in January of
this year, and his son, W illiam W.
C ook, Jr., becam e president of the
bank. T he C ook fam ily has been active
in m anagem ent of the bank since 1884.

O p en s P e r so n n e l A g en cy
Call 279-2724, area code 816, today

W. N. (Bill) C ham bers has an­
nounced the form ation of M id-A m er­
ica Banking R egistry at 4470 F am am
Street in O m aha. T he new firm will

Y A L E S EC U R IT Y E Q U IP M E N T
Sales and Service

Full line of bank security equipment
YALE BANK SERVICE DIVISION. Regional offices

The First
National Bank
ST. JOSEPH, MISSOURI 64502
FELIX A T F O U R T H

I9 6 0 W. 12th Place

2066 Farnam Street

Denver, Colorado 80204

Omaha, Nebraska 68104

Phone: 303/825-8241

Phone: 4 02/342-1821

F ; T * N ! î ïÂ

oduc,s

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION


112
N eb ra ska N ew s
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Federal Reserve Bank of St. Louis

Circle No. 29 For More Information

BEEF PRODUCERS . . .
( C ontinued from page 35)
added dollars in the food budget by consum ers eligible for
Food Stam ps is m eat, especially beef. So the dem and for
beef has been fu rth er increased this year because of the
Food Stam p program .
We anticipate that consum er dem and will continue to
accelerate as the F ood Stamp program is expanded fur­
ther.

*Q. What effect are beef imports having on domestic sup­
ply and prices? Why are increased import quotas neces­
sary? Is the government encouraging other countries to
ship beef into our country under these increased import
quotas?
W e do not believe th at these beef im ports interfere with
the orderly m arketing and production of cattle in the
U nited States.
Beef im ports do have some effect, m ainly on cow prices,
since m ost of the beef im ported is sim ilar to our process­
ing beef. T his y ear’s anticipated increase in im ports will
tem per cattle price gains. But w ith dem and continuing
vstrong, cattle prices will rem ain higher than in 1971 and
other recent years.
O n June 26 it was announced th at countries with addi­
tional supplies of m eats w ould be perm itted to m ove them
to the U nited States. This action was taken after it was
specialize in finding and placing of personnel at all levels in banks and sav­
ings and loan institutions throughout
the midwest and m ountain states. M idA m erica also will perform testing and
evaluation of prospective and present
employees.
M r. C ham bers recently resigned
from the F irst N ational B ank of
„ O m aha to organize the new com pany.
H e had been in the b an k ’s m ortgage
loan division for the past four years.
P rior to joining F irst N ational, M r.
C ham bers ow ned and operated private
em ploym ent agencies for 10 years.
M r. C ham bers also announced that
N ick L. K ostos resigned as operations
officer at F irst N ational Bank of
O m aha to join M id-A m erica B anking
R egistry on Septem ber 1. M r. K ostos
is a graduate of the U niversity of N e­
braska and has been with the bank
three and one-half years.

found th at some supplying countries w ould ship less to the
U nited States th an had earlier been expected.

Q. What effect are other government programs and con­
trols having on the cattle market? What is the total dollar
volume spent out of the Defense Department budget for
food for all segments of the Armed Forces, and how much
of this is spent on beef, pork, and other meats?
Certainly, feed grain program s, m eat im port legislation,
the Food Stam p program , and governm ental actions in
such areas as pollution control and feed additives have an
im pact on the cattle m arket. But the im pact is alm ost im ­
possible to quantify since it is essentially indirect and re­
sults prim arily from producers’ decisions.
By that I m ean th at the cattle m arket basically reflects
the supply-dem and situation for beef and oth er meats.
Producers decide for them selves how m uch beef to p ro ­
duce based on their ofn appraisal of future prospects. In
short, the beef industry is generally free to decide its own
course of action.
A s for the Defense D epartm ent, military takings of beef
totaled just over 400 million pounds (carcass weight) in
1971. T h at was equal to nearly 2 per cent of production.
M ilitary takings of pork last year am ounted to 169 m il­
lion pounds while m uch sm aller quantities of veal and
lam b were purchased— 1 9 m illion pounds and 5 million
pounds, respectively.— End

the one we’re in.” The holding com ­
pany has subsidiaries engaged in life
insurance, recreational land develop­
m ent and operation of a m idwestem
autom obile auction.
It earlier reported a break-even
statutory profit of $1,759 for the first
quarter ended M arch 31.
M r. Sack said the subsidiaries will
produce pre-tax income of about
$542,000 in the second quarter. Pio­
neer Insurance Co. will contribute
about $75,000, Superior Equity of
C alifornia approxim ately $472,000
and C entral States A uto about $70,000. C orporate expenses of the parent
com pany are running in the neighbor­
hood of $ 75,000 per quarter, bringing
the second-quarter pre-tax income to
$542,000 and after-tax net to $282,000, he explained.

V ice P r e sid e n t N a m ed
August C. “Jack” Holm quist has
joined the F irst N ational Bank and
T rust Com pany in Colum bus as exec­
utive vice presi­
dent.
Now vice presi­
dent of the com ­
m ercial loan de­
partm ent for the
N ational Bank of
Com m erce T rust
and Savings in
Lincoln,
Mr.
H olm quist
has
A. J. HOLMQUIST
been in the bank­
ing field since 1957.
H is background includes bookkeep­
ing, auditing, operations and personnel
officer-assistant vice president prio r to
advancing to his present job in 1962.

We can help you . . .

S u p e rio r E q u ity R ep orts
Superior Equity C orp. should earn
about $1,330,000, o r 53 cents per
share, this year, R oger D. Sack, presi­
dent, told financial analysts in San
Francisco recently. H e estim ated earn ­
ings for the first half ending June 30 at
$284,000, or 11 cents per share.
T he head of the Lincoln, Neb., hold­
ing com pany said the estim ates are
based on insurance industry statutory
accounting, “which tends to und er­
state earnings in growth periods like
Digitized
for
Se p te
m FRASER
b e r, 1 9 7 2
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Federal Reserve Bank of St. Louis

A S K US . . .

at the NBA GROUP MEETINGS

Nebraska News

113

EXPANDYOUR
RESOURCES
B u s in e s s g ro w th
m e a n s th a t y o u , a n d

s io n p o s s ib le . B u s i­
n e s s m e n lo o k to y o u

y o u r c u s to m e rs , a re
th in k in g a b o u t a d d i­

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t io n a l
re s o u rc e s .
A d d itio n a l to o ls o f
th e
t r a d e , s o to
s p e a k . In o rd e r to

h e lp

g ro w a n d s u rv iv e in
t h e s e c o m p e t it iv e
tim e s , it’s n o s e c re t
th a t m a n a g e m e n t
s h o u ld a lw a y s k e e p a t le a s t o n e
s te p a h e a d o f Itse lf. A ll th e tim e .
E v e ry w o rk in g d a y o f e v e ry w e e k .
A n d a t n e a rly e v e ry tu rn , th e n e e d
fo r a d d itio n a l w o rk in g c a p ita l b e ­
c o m e s im p o rta n t.
In b a n k in g , y o u r fin a n c ia l r e ­
s o u r c e s a re y o u r to o ls . M o n e y c a n
h e lp to s h a p e a n d fo rm id e a s , a n d
m a k e b u s in e s s g ro w th a n d e x p a n ­

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Area Code 8 0 0 /3 6 2 -16 8 8
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tim e s , y o u to o n e e d
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e x p a n d in g

y o u r o w n re s o u rc e s .
T h a t's w h e re w e
c o m e in. W e ’re D e s
M o in e s ' la rg e st in ­

d e p e n d e n tly o w n e d
bank. A n d w e s ta n d
re a d y a n d w illin g to
a s s is t y o u in e v e ry w a y w e c a n .
O u r c o rr e s p o n d e n t b a n k in g s p e ­
c ia lis ts k n o w a n d u n d e rs ta n d y o u r
p ro b le m s a n d a re a n x io u s to h e lp
y o u e x p a n d y o u r re s o u rc e s .
B e c a u s e w e ’re s e rio u s , w e w a n t
y o u to fin d th a t o u t fo r y o u rs e lf.
J u s t c a ll us. W e ’ll b e h a p p y to d is ­
c u s s y o u r n e e d s . A n d th e n e e d s o f
th e p e o p le y o u s e rv e .

DES MOINES’
RESOURCEFUL
BANK
BANKERS TRUST
Correspondent Banking Department
6th & L o c u s t/(515) 283-2421


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Federal Reserve Bank of St. Louis

Iowa

10:20

NEW S
T. H. HUSTON

11:00

Pres., Columbus Junction

A. E. LINDQUIST, JR . Ex. V.P. Des Moines

L a w y e rH u m o rist , and Movie to H ighlight
IBA Conference on Installm ent Lending
H E R E O ught to be a Law ’’
A a C het H untley movie, will
highlight the C onference on Install­
m ent Lending to be held Tuesday and
W ednesday, Septem ber 19th and 20th
in Des M oines.
Speakers at the 18th annual confer­
ence range from a law yer speaking on
¿he repossession problem to a L ouisi­
ana “hum orist w ith a m essage” speak­
ing at a dinner banquet.
44HH

R. L. SELLON

J. CHRYSTAL

The conference is sponsored by the
installm ent loans com m ittee of the
Iow a B ankers A ssociation and will be
held at the H otel F o rt Des M oines.
Presiding will be R ichard L. Sellon,
chairm an, IB A installm ent loans com ‘m ittee;
vice
president,
low a-D es
^Moines N ational Bank.

Tuesday, September 19
A.M .
8:45 Registration— M ezzanine, H o ­
tel F o rt Des M oines.
9:45 Call to O rder—
y
W elcom e— T hom as H. H us­
ton, president, IB A ; president,
C olum bus Junction State Bank.
10:00 “T here O ught to be a L aw ,”
C het H untley m ovie and “T he
U niform
C onsum er
C redit
C ode”— R ichard L. W heatley,
Jr., chairm an, U niversity N a ­
tional Bank, Stillwater, Okl.
11:15 “T he C onsum er C redit P rob­
lem P anel”— M r. W heatley,
chairm an. Panelists: H on. E liz­
abeth Shaw, D avenport, state
r
representative, Scott County,
com m ittee
chairm an;
Sen.

S e p te m b e r, 1 9 7 2
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Reinhold O. C arlson, Des
M oines, state senator, Polk
County, com m ittee vice chair­
m an; Sen. Gene W. Glenn, O t­
tum w a, state senator, W apello,
Davis
Counties,
committee
m em ber; H on. W illiam E.
G luba, D avenport, state repre­
sentative, Scott County, com ­
m ittee mem ber.
P.M.
12:20 L uncheon
speaker— Bernard
C ooper, Sioux City, athletic
director and football coach at
Heelan H igh School.
2:00 Bull Sessions—
G roup 1-Chairm an, John J.
H illiard, F irst N ational Bank,
O ttum wa.
G roup 2-C hairm an, Jam es W.
T ritz, Toy N ational Bank,
Sioux City.
G roup
3-C hairm an,
Jam es
K arlin, Hawkeye State Bank,
Iow a City.
G roup 4-C hairm an, F rank J.
M oran, State B ank and T rust
Com pany, Council Bluffs.
G roup 5-C hairm an, R eid E.
Erickson, Jackson State Bank
and T rust Com pany, M aquoketa.
G roup 6-C hairm an, Dale L.
K lauss, C entral N ational Bank
and T rust Com pany,
Des
M oines.
5:00 Social H our.
6:45 B anquet—
A ddress— N ew t Hielscher of
Shreveport, La.

Wednesday, September 20
A .M .
9:30 Call to O rder—
W elcom e— John Chrystal, vice
president,
IBA;
president,
Iow a Savings Bank, Coon
Rapids.
9:40 “Student L oans and Sallym ae”
— D avid Bayer, chief of the

11:50

12:00

program operations branch, of­
fice of insured loans, Office of
Education.
“T he R epossession Problem ”
— John
G.
F letcher, Des
M oines lawyer.
“Legislative News F rom W ash­
ington”— J. T hom as H iggin­
botham , legislative counsel for
the C onsum er Bankers A ssoci­
ation.
T raditional Final W ord— O li­
ver A. H ansen, Superintendent
of Banking.
A djournm ent.

H all B u ys In terest in
C edar F alls B ank
W ayne S. M athews, president of the
C edar Falls T rust & Savings Bank, an­
nounced recently that Paul H all of
W aterloo has p u r­
chased a
con­
trolling interest in
the bank and has
b e e n appointed
executive
vice
president.
M r.
H all
is
president of the
Hall Oil C om ­
pany, vice presi­
dent and director
of Home Savings and Loan Associa­
tion and a director of the Peoples Bank
& T rust Com pany, all of W aterloo.
O ther positions he has held are: vice
president and director of the State
B ank of Noel, Mo. and vice president
and director of the Bank of Bentonville, A rk.

O p en H o u se fo r
R e m o d e le d B ank F a cilities
T he C larke County State Bank of
Osceola had a “pre-open house p arty”
A ugust 23 to view the newly rem od­
eled facilities.
F ro m 5 to 6 PM guests inspected
the bank building. F ro m 6 to 7 PM
they had cocktails at the Osceola
C ountry C lub and dinner from 7 to 8
PM .
T he officers of the bank are: R . A.
R obinson, chairm an; K eith W. R ich­
ard, president; E arl Curtis, executive
vice president; R oss E. G ould, vice
president; Jane H ouston, assistant vice
president and trust officer; K eith A ll­
bough, cashier, and T. Erw in W hite,
assistant cashier.
T he deposits of the bank are now
$13,163,292, with a capital and sur­
plus of $600,000.

115

Announce Speakers fo r Iowa Convention
of the program for with M onday m orning devoted to the
the 86th annual convention of the A gricultural B reakfast and speakers.
Iowa Bankers A ssociation have been
The M onday evening buffet dinner
released by T hom as H. H uston, presi­ dance at Val A ir B allroom will feature
dent of the A ssociation and president,
the W oody H erm an O rchestra.
Colum bus Junction State Bank. The
Com plete details of the 86th annual
1972 convention will be held O ctober
convention program will be published
22-25 at H otel F o rt Des M oines in Des in the O ctober issue of the N o r t h ­
Moines.
w estern B anker.
Two departures from the traditional
form at have been m ade this year. The
F irst N a tio n a l P r o m o tio n s
M rs. Sue L uhring and W illiam TufPresident’s Reception scheduled for
M onday evening from 6 :0 0 p.m. to ford have been prom oted to assistant
7 :0 0 p.m ., will be at T errace Hill in ­ cashier at the F irst N ational B ank of
stead of H otel F o rt Des M oines. T er­ C edar Falls.
race Hill, located at 23rd and G rand
Avenue, is the historic H ubbell M an ­
sion th at will soon become hom e for
Iow a G overnors.
T he second change is in the location
for the Tuesday night stage show.
Heavy sum m er rains extensively dam ­
aged K R N T T heater to such an extent
it will not be reo p en ed : T he stage play,
“Two by T w o,” starring Shelley Ber­
m an, has been transferred to the new
S. LUHRING
W. TUFFORD
C. Y. Stephens A uditorium at A m es on
M rs. L uhring has been em ployed by
the Iow a State University cam pus, 35
miles north of Des M oines. T heater p a ­ the bank for 11 years as secretary and
trons will journey to and from A m es in M r. T ufford joined the bank in 1969
after graduation from W artbug College
chartered buses o r private cars.
and
com pletion of m ilitary service.
H eadline speakers from outside the

H

ig h l ig h t s

Association will include:
* H erb Plam beck, assistant to the
Secretary of A griculture, W ashington,
D. C.
* C het R andolph, executive vice
president, A m erican Soybean A ssocia­
tion.
• Wm. R uder, president, R u d er &
Finn, Inc., N ew Y ork, the advertising
agency handling the F oundation p ro ­
gram.
• Eugene A dam s, president-elect of
the A B A and president, F irst N ational
Bank, Denver, Colo.
* H. L. G erhart, Jr., president, In ­
dependent Bankers A ssociation of
A m erica, and president, First N ational
Bank, N ew m an G rove, Nebr.
* E lliott Janew ay, econom ist, syndi­
cated colum nist and conservationist.
• M orris Craw ford, chairm an, Bow­
ery Savings B ank, New Y ork, and
m em ber, H u n t Commission.
* A three-m an panel of executive
news editors from N atio n ’s Business.
• P eter H ackes, N B C com m entator
and analyst.
* A lex K arras, form er U niversity of
Iow a and D etroit Lions football star,
and now a T V sports personality.
The convention will open as usual

116
Iowa News
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

O ak S a v in g s E le ctio n
G eorge E. O lsen has been elected
assistant vice president of the O akland
Savings Bank. H e joined the bank in
1971.

P e te r so n E lected D irecto r
W arren S. (Shelly) Peterson has
been elected to the board of directors
of the L ake C ity State Bank. M r.
P eterson is p a rt ow ner of the PetersonSheehan Co.

N ew D e co r a h State B ank
G ives C ustom ers P riv a cy
O pen house was held recently at the
all-new D ecorah State Bank.
T he $800,000 rem odeling project,
started in N ovem ber, 1970, involved
a com plete stream lining of the bank.
W. P. “Bill” R onan, president, says the
new facilities not only “provide m ore
w orking space,” but “provide a good
sense of privacy for the custom er.
E ach teller area is specially designed
for the privacy of the custom er,” he
added.
T he new bank was designed by D e­
corah architects Olson, G ray, T hom p­
son and Lynnes. G eneral contractor

DECORAH State Bank

for the project was the N elson C on­
struction Co. of Caledonia, M inn.
T here are 10,000 square feet of
space on the two m ain floors and an­
other 8,000 on the third floor, which
is not being used by the bank now. A
new feature of the bank is the arcade
which allows custom ers to travel to the,
business district of D ecorah and back
to the m ain city parking lot.

C o n stru ctio n T o B egin
A t U n io n B ank & T ru st
C onstruction of a new U nion Bank
and T rust Co. bank parking lot office
in O ttum w a is scheduled to begin soon,
according to bank officials.
T h e new office will include driveup facilities, inside tellers, a new ac­
count desk and a loan office, It is ex­
pected to take four m onths to com ­
plete.
This new office will be the sixth
banking facility for the bank.

L akes N a tio n a l M oves
Into N ew B u ild in g

.

T he Lakes N ational Bank at A rnold
Park has moved to a new 3,200 square x
foot building, featuring a drive-up win­
dow, parking area and night deposit
facilities.
T he architect was D uane C ham bers
of Spencer and the contractor was
M cH an C onstruction of Sioux City.
The bank was established in A pril,
1963 as an office of the F irst N ational
Bank of Sibley and was incorporated
under a new charter in January, 1972.
M arvin Sim onson has been elected ex­
ecutive vice president and L arry Beckeris cashier.

C ham ber E lects U n d erb rin k
E arl U nderbrink, president of the
First N ational Bank, has been elected
president of the F o rt Dodge C ham ber
of Com m erce and will succeed Van R. .
W aasson.
N o rth w e ste rn B a n k e r

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"C o lo r M e P in k ”
CHRISTY F.
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Executive
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LEO F. KANE
Senior
Vice President

ROBERT G. SCOTT
Senior
Vice President

American Trust and Savings Bank
DUBUQUE, IOWA Member FDIC, Federal Reserve System


September, 1972
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

117

Action in H andling Emergencies Is Topic
O f Minimum Risk Banking School

L

E A R N IN G to act, rath er than re­
act, to civil disorders, bom b
threats, robberies and other em ergen­
cies will be the objective of the M ini­
m um R isk Banking school scheduled
for Iowa.
T he school, sponsored by the securi­
ty com m ittee of the Iow a B ankers A s­
sociation, will be held Septem ber 2627 at Johnny and K ays H yatt H ouse
in Des M oines.
R epresentatives, consultants and as­
sociates of Execudec, Inc., Internal Se­
curity C onsultants, and Scarborough &
C om pany, B ank O perational In su r­
ance Specialists will instruct registrants
on specific techniques in handling
emergencies. A ll registrants will re­
ceive a security officer’s control file
and form s necessary to im plem ent a
com plete security and training p ro ­
gram w ithin their ow n bank.
T he school will include 10 program s
on various topics.
A course on personnel training em ­
phasizes em ployee safety and ways to
reduce the potential liability of the
bank, its directors and officers.
Instructors present a system of facial

identification, to enable bank person­
nel to properly record, im m ediately
following a robbery, the specific items
of identification needed to produce a
com posite draw ing of the robber. E m ­
ployee preparedness for interviews by
law enforcem ent is also emphasized.
Developing w ritten guidelines for
safe, efficient handling of situations
such as bom b threats and civil disor­
ders w ithout detracting from the desire
public image is the topic of another
course.
Instruction ranges from initial ac­
tion to be taken after receiving a tele­
phone threat through emergency shut­
down, evacuation, reoccupation and
publicity control procedures.
A no ther course will present an anal­
ysis of physical security equipm ent in­
cluding vault doors, ventilators, night
depositories, alarm s and surveillance
systems. Visual and television drivein equipm ent will be covered.
Plans for action in case attem pts are
m ade to extort bank funds through the
actual holding or threat of holding a
hostage are also presented.
T he F a ir C redit R eporting A ct

course focuses on pre-em ploym ent
screening procedures designed to re­
duce the potential of internal theft. In ­
troduced will be inform ation on secur­
ing applicant background data and
how this procedure is affected by the
F air C redit R eporting Act.
A system will be presented outlining
security procedures for receipt and dis­
sem ination of custom er credit inform a- <
tion and m aintenance required by this
act.
A lso discussed will be: guidelines
for handling cash in the vault and by
tellers and m ethods of instructing tell­
ers on limits of cash and use of b ait^
money.
T he internal controls course is based
upon the prem ise that in the absence
of effective and enforced loss control
m ethods, losses will occur which m ay
or m ay not be covered by insurance.
T hrough details of actual losses, e x a m -'
ination of loss control weaknesses will
be m ade, pointing out ways losses
could have been avoided.
Included will be a basic discussion
of Bankers Blanket Bond coverage and
the effects of losses on prem ium , de- ^
ductibles and coverage.
Panel discussions will give regis­
trants a chance to ask questions about
their unique situations.
F o r a 30-day period following the
program , all registrants, at no addi­
tional investm ent, may ask the two
com panies questions about individual
security or insurance problem s in im ­
plem enting the curriculum covered by
the program .

A lton S a v in g s to B eg in
C on stru ction o f A d d itio n
C. A. GUSTAVESON

D NACHTMAN

D. KUCERA

We ll See You at the Instalment Conference
To the nearly 250 Iowa bankers now using our credit life program, we
hope to see and greet each of you at your conference.
To those of you who are not familiar with National Fidelity’s credit life
programs, we would like to tell you about them. Look for us at your con­
ference. We’ll be looking for you.
Remember To Visit Our Hospitality Suite

Plans for rem odeling and expansion
have been announced by M ax K iernan,
vice president of the A lton Savings
Bank. C onstruction will begin im m edi­
ately.
Structural Design, Inc., of H olstein
have designed the new facility and will supervise the construction, which
should be com pleted by the end of the
year. T he addition will provide addi­
tional office space, an enlarged insur­
ance departm ent and a drive-up bank­
ing facility for bank patrons.

O ne o f th e N ation's S tro n g est b y A n y Standard o f C om parison

M iller J o in s First T rust
" R

a t io n a l

2313 Ro<k!yn Drive


118
Iowa News
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Federal Reserve Bank of St. Louis

f id

e lit y

\ jfe
Des Moines, lowo

T he F irst T ru st & Savings B ank, O x­
ford, announced recently th at M arvin
M iller has joined the staff as a junior
officer trainee.
M r. M iller was previously employed '
at the M adeira Beach B ank in Florida.
N o rth w e ste rn B a n ker

i

y

Ninety years ago we started working with home banks of cattlemen
who drove their herds to Chicago. Word spread how The Drovers
enabled them to credit their receipts to banks back home. How
better could we build a backlog of correspondent banking knowl-e s ta b lis h ties that have strengthened and spread over the
rienced? We’re tall in the saddle! Current? We’re
and able to supply every correspondent banking service
¿mu need. Even more. To solve special problems, we add some
fresh, creative thinking—and a bit more personal attention than you
may get other places. This is our new breed of banking we’d be
proud to serve you w ittv -ln Drovers Country,

wfi"

Building Mo
for Midwest Banks
since 1883

ihfillrnvers

National Bank of Chicago

47th & Ashland Ave. • Chicago, Illinois 60609 • Phone (312) 927-7000
•

Digitized
FRASER
Septemfor
ber,
1972
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Member Federal Deposit Insurance Corp. • Member Federal Reserve System
• Member Chicago Clearing House Association

119

The new facilities will include addi­
tional office space, drive-up windows,
night depository system, parking for
employees and custom ers and a full
basem ent which will be available for
com m unity meetings.
Becker & A ssociates of A lta de­
signed and engineered the new facility.

T w o E lected to B oard
ARCHITECT’S SKETCH of planned new People Savings Bank

Montezuma Opens New Quarters

T

H E new black brick Peoples Sav­
ings B ank in M ontezum a has open­
ed.
F eaturing m any new services, the
building covers 3,300 square feet and
has a full basem ent. L ocated on the
m ain floor are an entrance lobby, main
lobby, vault, two booths for safety de­
posit box custom ers, five teller w in­
dows, four private offices and a book­
keeping area. T he low er level contains
a com m unity m eeting room , kitchen­
ette and lounge area, board of direc­
to r’s m eeting room , restroom s, and a
furnace and storage area.
K irk G ross Co. of W aterloo de­
signed and furnished the new building
and was in charge of construction.

U nion Bank and T rust Com pany, O t­
tum w a and the Valley Bank and T rust
Com pany, Des M oines. T he Council
Bluffs Savings Bank joined Banks of
Iow a in February, 1972.
The board of directors of a fifth
Iow a bank, The F irst N ational Bank
of Burlington, has agreed to affiliate
th at bank with Banks of Iowa.

N ew B ank at L o n e T ree
C onstruction has recently begun on
a new L one Tree Savings Bank build­
ing.

K enneth Bunnell, and Sam S. Killinger of Sioux City were elected to the
board of directors of the F irst T rust
and Savings Bank in A nthon.
Mr. B unnell, life-long resident of
A nthon, owns and operates the Stand­
ard station. M r. Killinger is vice presi­
dent and trust officer of the Toy N a ­
tional Bank of Sioux City.

Increase D irectors
Stockholders of the M t. Pleasant
Bank and T rust C om pany recently
voted to increase the num ber of direc­
tors from five to seven.
T he new directors nam ed are: H ar­
old H. V an Syoc, auctioneer and real
estate broker, and G ary L. Wiegel, lo­
cal attorney.

B an k s o f Iow a N et Kose
11.5% in F irst S ix M onth s
F. Forbes O lberg, president of
Banks of Iowa, Inc., reported a 11.5%
increase in first half net incom e before
security transactions fo r the Iow a
based bank holding com pany.
M r. O lberg reported first half earn ­
ings before security transactions of
$1,737,145 or $1.16 a share com pared
with $ 1,558,046 or $1.04 a share one
year earlier. E arnings after security
transactions were $1,754,073 o r $1.18
a share, up from $1,635,119 o r $1.10
a share in the first half of 1971.
C onsolidated assets of Banks of
Iow a increased on a pro form a basis
to $3 9 8 ,9 1 2 ,0 0 0 on June 30, 1972,
com pared w ith $371 ,7 9 9 ,0 0 0 on June
30, 1971, an increase of 7 .3 % . T otal
capital accounts reached $37,922,000
or $25.41 p er share at the end of the
first half of 1972. A t the same tim e one
year ago capita] accounts totaled $35,729,000 or $23.94 per share.
A pro form a basis of reporting 1971
financial inform ation reflects the addi­
tion of three affiliate banks to the
Banks of Iow a fam iliy in the past year.
Joining with T h e M erchants N ational
B ank of C edar R apids in 1971 was the

120
Iowa News
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Federal Reserve Bank of St. Louis

ARCHITECT’S MODEL of new Swisher Trust/Savings building.

Swisher Trust & Savings To Build

T

H E Swisher T rust & Savings Bank
recently announced plans for a new
full-service banking facility.
T he new building will contain 6,500
square feet of space, on two levels and
will provide drive-up teller and after­
hour depository facilities, com m unity
room accom m odations and new safety
deposit boxes.
T he K irk Gross Co., W aterloo, is
the designer and contractor for the
bank. C onstruction will begin im m edi­
ately and com pletion is expected by
the end of the year.

C elebrates 7 5 th Y ear
T he F airb an k State Bank has cele-

brated its 75th anniversary with a buf­
fet supper for area bankers. T he bank
was first established in 1891 as a C iti­
zens Bank, a private institution. On
M ay 24, 1897 it was chartered under
the corporate laws of Iowa.

F o u r D irectors E lected
A1 M aser, president of the Lakes
N ational Bank in Arnolds Park, re­
cently announced the election of four
area m en to the firm’s board of direc­
tors.
They are: Don Evans of Okoboji,
Dr. Donald F. Rodawig, Jr. of Spirit
Lake, Darlowe Oleson of Okoboji, and
M arvin Simonson of A rnolds Park.
N o rth w e ste rn B a n k e r,

For banks not equipped to handle it, check clearing is a costly
procedure.
And so are collection of checks, proof of deposit, qualification,
and transit work.
With all these operations, and
?
with the most modern computer
/
work, we can help you.
1
>7
Right now, we’re one of the
largest correspondent banks in
the state. And we’re getting bigger
every month.
So before your work load be­
comes any worse, do what many
other sensible people have done.
Check with us.

National Bank of W aterloo
110 E. Park ♦Waterloo, Iowa


S e p te m b e r, f 9 7 2
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Federal Reserve Bank of St. Louis

121

Ownership Changes in Webester C ity Bank

L

O R E N Z H orn, president of the
F irst State B ank in W ebster City
for 14 years, has announced the sale
of controlling interest in the bank to
R. E. “R u ss” Johnson of L ittleton,
Col.
M r. Johnson has taken over as the
b an k ’s president. A native of F ranklin,
M inn., he began his banking career
with the F arm ers State B ank in M o r­
ton, M inn, in 1935. M r. Johnson later
moved to W inthrop, M inn, w here he
served as m anaging officer and director
of the W inthrop State Bank.
In 1956 M r. Johnson sold his in ter­
est and m oved to L ittleton, C ol., w here
he served as president of the L ittleton
N ational B ank, a suburban D enver
bank. In 1964 he resigned and m oved
to Craig, Col. w here he had purchased
controlling interest in the M offat
C ounty State B ank.
M r. H orn, who had been president
since 1958, began his career in 1918
at the F irst N ational B ank of Renwick.
H e later m oved back to his hom e,
W ebster City, and w orked at the
H am ilton County B ank.
M r. H o rn was em ployed by a bank
in G rand Island, N eb., before retu rn ­
ing to W ebster City in 1928 to take a
position w ith the F arm ers N ational
Bank. H e rem ained in th at position u n ­
til 1935 w hen he was nam ed assistant
cashier of the new ly-organized First
State Bank.

A n th o n B ank Staff C hanges
The following changes in staff have

been m ade at the F irst T rust & savings
B ank in A nthon:
W alter Sterrett Jr. was elected pres­
ident. H e joined the bank as a book­
keeper and teller in O ctober 1955. He
becam e assistant cashier in 1957 and
cashier and m anaging officer in 1965.
M r. Sterrett was elected director in
1966 and vice president and cashier
in 1968.
R obert E. Cloud was elected cash­
ier. H e joined the bank as bookkeeper
and teller in July 1966.
F ra n k C. G othier was elected chair­
m an of the board.

M cC orm ick J o in s Staff
W illiam C. M cC orm ick has joined
The M erchants N ational B ank of C edar
R apids, as systems and program m ing
m anager for the
com puter services
division. In his
new job he co­
ordinates the de­
velopm ent
and
im plem entation of
com puter systems
f o r The M erc h a n t s N ational
Bank and other
W. C. McCORMICK
m em bers of the
Banks of Iowa holding company.
M r. M cCorm ick, 29, has been with
the d ata processing division of IBM in
C edar R apids as a m arketing repre­
sentative and systems engineer. He is a
graduate of the University of Iowa with
a degree in marketing.

Complete Credit

The announcem ent was made by
Jam es E. Coquillette, president.

S ecurity N a tio n a l C orp.
T o B uy N W State B ank
E. C. Thom pson, chairm an, and
T hom as C. H orn, president of Security
N ational C orporation of Sioux City,
la., jointly with H. V. Row enhorst,
president, N orthw estern State B an k ,*
O range City, la., announced subject
to the approval of the state and federal
regulatory agencies, th at negotiations
have been com pleted for the sale of the
m ajority interest in the N orthw estern '
State B ank to Security N ational C or­
poration.
M r. R ow enhorst, who will continue
as president of the bank, stated that
he was pleased that this association
with Security N ational C orporation
could be made. It will help to insure
am ple capital funds for the grow ingcapital requirem ents of the com m unity
and the agricultural area that the bank
serves, he said.
M r. H orn em phasized there will be
no change in the officers or personnel presently employed by the bank, and
that the present operational procedures
and policies established by the board
of directors w ould be continued.
F o r many years the N orthw estern
State B ank has been closely associated
with The Security N ational B ank of
Sioux City, la., a subsidiary of Security
N ational C orporation, in a corre- 4
spondent bank relationship.

E n g el P r o m o te d at S h eld o n
R obert Engel was recently appoint­
ed assistant cashier and trust officer
at the Security State B ank in Sheldon,
according to R ichard A. Schneider,kpresident. Mr. Engel will continue as
farm representative.

Increases C apital Stock

Insurance Service
i . KUHN

D. BROWN

JACK and DON will be in attendance at the Iowa Installment Lending
Conference. To learn more about the complete credit coverages backed
by over $150,000,000 in managed assets, check with Jack or Don at the
Iowa Installment Lending Conference.

LIFE INVESTORS INSURANCE COMPANY
OF AMERICA
375 COLLINS ROAD N.E.
CEDAR RAPIDS, IOWA
PHONE AC 319- -364-6111

122
Iowa News
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Federal Reserve Bank of St. Louis

Stockholders of the Pocahontas
State B ank have voted to increase cap­
ital stock to $200,000.
Two officers were elected to the
bank’s staff. T hey are: Jam es D ona­
hue, vice president, nam ed to fill the
vacancy of the late T. A. N ixon and
George T. M cC arran, Jr., assistant
cashier.
H

L en d in g L im it In creases
The directors of the First T rust &
Savings Bank, Rem sen, have author­
ized the transfer of $50,000 from un­
divided profits account to surplus. T he
bank’s legal lending lim it is increased <■
from $80,000 to $90,000.
N o rth w e ste rn B a n k e r

Serving the
'

banks and bankers
of Iowa

>

s in c e

1 8 7 2

and
now a member of
A

Banks of Iowa, Inc.
v

Valley Bank andTrust Com pany
W ALNUT AT FOURTH • SEVENTEENTH FROM GRAND TO LOCUST
M e m b e r F e d e ra l D e p o s it I n s u r a n c e C o r p o r a tio n


Septem ber, 19 7 2
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

•

M e m b e r F e d e ra l R e s e rv e S y s te m

123

“The Woman Banker ■’ is Conference Theme

M

RS. R osem ary Shutts, Iow a group
chairm an and assistant cashier
of the Jasp er C ounty Savings Bank,
N ew ton, will preside over the 1972 an ­
nual conference of the Iow a G roup,
N ational A ssociation of Bank-W om en,
Inc.
T he conference will be held Septem ­
ber 13 and 14 at the R am ada Inn in
Newton. “Profile of T oday’s W om an
B anker” is the them e.

R. SHUTTS

T ru st & Savings B ank, D ubuque, will
m oderate a panel discussion of “ W hat
D o Y ou E xpect F rom Y our W omen
Officers” . Panel participants will be
E arl Y oungstrom , president, C om m u­
nity State Bank, C lear Lake; Jim M enges, vice-president and cashier, Jasper
C ounty Savings Bank, N ewton, and
John M angold, senior vice president,
M erchants N ational Bank, C edar
R apids.
The evening banquet speaker will be
M r. E m m ett B utler, retired public rela­
tions director, M aytag Com pany, N ew ­
ton, who will speak on “Y our Public
R elations A re Showing” .
M r. Collin W. Fritz, president, C en­
tral N ational Bank & T ru st Co., Des
M oines, will speak at the second ses­
sion. His topic will be “Banking In The
7 0 ’s” . A fter the business m eeting and
luncheon, M rs. M ary H olstad, assist­
ant m anager investm ent departm ent,
C entral N ational B ank & T rust Co.,
Des M oines, will speak on “T hree Ser­
vants.”

L. H O SIER

M iss L evetta H osier, M idw est re­
gional vice president, N ational A ssoci­
ation of B ank-W om en, Inc. and execu­
tive vice president of the F ullerton N a ­
tional Bank, F ullerton, N eb., will open
the state m eeting with h er talk, “T he
Spotlight Is On Y o u ” . M rs. H arriett
Davidsaver, vice president, A m erican

A m sler B eco m es M anager
John H. A m sler has been appointed
m anager of the Sioux City office of

F irst M id A m erica Inc., an investm ent
banking firm, according to Lawrence
B. Lunde, vice president Iow a opera­
tions.
Prior to the appointm ent, M r. A m s­
ler had served as m anager of Iow a m u­
nicipal bond sales and m anager of the
Des M oines office of F irst M id A m er­
ica.

In crea se C apital S tock
The following Iow a banks have in­
creased their com m on capital stock:
T eeds G rove Savings B ank from $75,000 to $150,000; F irst T ru st and Sav­
ings Bank in C edar R apids from
$200,000 to $500,00, and A tlantic
State B ank from $250,000 to $500,000.

B a n k ers T o T o u r M exico
B e fo r e A BA C o n v en tio n
The Iow a B ankers are sponsoring
a tour of M exico before the A m erican
Bankers A ssociation convention in
Dallas through T ravel H ost, Inc. of
Des M oines.
T he group will leave Des M oines,
Saturday, Septem ber 30 and return
W ednesday, Septem ber 12. Cost of the
trip is $473 per person. Details can be
obtained from Travel Host, Inc., 2217
G rand Ave., Des M oines, la. 50312.

Planning to Build or Remodel?
What can Kirk Gross Company do for you?
Ita n k e

Before you build or remodel, check with your
banker friends like Earl Curtis, executive vice
president, Clarke County State Bank, Osceola.

iB A N K

Kirk Gross Company
Waterloo, Iowa
Dear Sirs:

.olina project tor

Recently
«* ^
our bank. We couldn t
he first place
on for
your
c0"ipof
a. expe
experience tim
in ethis
Our reason
to choosingand
years
or
was your fine ^ P we (eU we did not
^ decorators.
type of work. A • individual contractor
w Jerry
Knowledge to de
( coordinated,
minimum of del y
our bank
nroup of workmen

Mr. Curtis and dozens of other bankers
can tell you that you can rely on The Kirk Gross
Company’s SINGLE SOURCE RESPONSIBILITY
PROGRAM for quality construction, interior de­
sign and decoration backed by a team of experts.
Best of all — once you’ve set a budget, Kirk
Gross Company guarantees that is what it will
cost!
Give Kirk Gross Company a call or write today
for our booklet on bank planning.

k Gross

program- We think you re ,ops^

uu(y yours,

ExecutW^Vice President
,,

a'C 515 342-2118

orceola. lew. 80213 • A IC 5 «

^

•

„„<) Walk-Up

4?7.2536

n o EAST 7TH ST. • WATERLOO. IO W A 50705
PHONE (3 I9 ) 234-6641


124
Io w a N ew s
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Circle N o . 30 For More Information

N o r th w e s te r n Stinker

We’ve Been Around—Like 110 Years

And We Know What We Want
"What we want is a company aggressive in com­
mercial lines, looking for new accounts, and with the
service to help us get them. That's why we chose
Employers Mutual Companies of Des Moines, Iowa.” *

bum

r

'v y t/r y w

Employers Mutual Casualty Company
Employers Modern Life Company
Emcasco Insurance Company
Des Moines

Union Mutual Insurance Company
Providence


Septem ber, 1972
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Employers is ready to write your commercial business.
It has the people, the expertise and the experience.
Employers hasn’t been around since 1862, but it wasn’t
born yesterday either. It is a pioneer since 1911 in
writing workmen’s comp. It handles special m ulti­
peril, broad umbrella coverage, fidelity and surety
bonds. And, it has full personal lines.
* John G. Ruhl, C.P.C.U,
President
Ruhl & Ruhl, Inc., Davenport, Iowa

125

nam e later was changed to Midway
B ank & T rust. M r. Johnson served on
the board of directors of the Seventh
Federal Reserve B ank of Chicago from
1944 to 1962. H e served as president
of the Iow a Bankers A ssociation in
1943-44.

Larry j . H irsch b erg
J o in s F ort D o d g e B ank

ARCHITECT’S sketch of planned new building.

Cresco Bank To Build
facilities for the Cresco U nion
N EW
Savings b an k will be erected on the
site of the present bank building which
will form the nucleus for the new struc­
ture, according to Jack Thom son, bank
president.
T op floor of the three-story build­
ing, however, will be rem oved. W hile
retaining its location, as well as the
mall and parking facilities, the new
structure will n o t resem ble the current
bank building.
T raditional lines of architecture are
being used on the exterior and will be
used fo r in terior design. Shuttered w in­
dows and tall pillars, accented by a
w idow ’s w alk roof railing, add to the
traditional exterior.
D rive-up banking service will be lo­
cated on the east side of the bank w ith
an island unit providing pneum atic
tube service from the second lane drive
into the bank.

Vivian W. Johnson
V ivian W. Johnson, 76, form er
president and chairm an of the F irst

N ational Bank of C edar Falls, died
A ugust 7. Burial was in C edar Falls.
M r. Johnson started his banking ca­
reer in 1919 in C edar Falls after re­
turning from service in W orld W ar I.
H e becam e an officer of Citizens Sav­
ings B ank in the 1920’s and helped
m erge that institution with Security
T ru st & Savings B ank in 1932. T he
bank nam e later was changed to U nion
B ank and Trust. He served as vice
president and cashier of the continuing
institutions until his election as presi­
dent in 1937 of U nion Bank & T rust.
T he bank was converted to a nation­
al charter July 22, 1939, under the
nam e of F irst N ational Bank. M r.
Johnson continued as president of the
bank until he and his associates sold
controlling interest in D ecem ber, 1961,
to the G reater Iow a C orporation. H e
continued for one year as chairm an of
the board, retiring in 1962.
M r. Johnson also was one of the o r­
ganizers of M idw ay N ational B ank
w hen it w as chartered in 1961. T he

FIRST NATIONAL BANK
BURLINGTON, IO W A
Statement ®f Condition Jane 30, 1972
LIABILITIES
ASSETS

Cash and Due from Banks . . $ 4 .6 0 6 ,0 6 3 .6 8
U.S. G overnm ent Securities . .
5 ,5 3 9 ,6 8 5 .0 4
State, County and M unicipal
Bonds ..........................................
5 ,3 7 7 ,4 6 6 ,1 3
O th e r Bonds .................................
1 ,6 8 1 ,5 8 1.36
Loans and D is c o u n t s ................. 2 1 ,2 6 4 ,7 4 5 .2 6
fe d eral Funds Sold
6 0 ,0 0 0 .0 0
Stock in fe d e ra l R eserv e Bank
Bank Prem ises, Furniture
3 9 9 ,8 5 3 .0 4
and F i x t u r e s ............................
4 4 3 ,0 9 6 .3 3
O th e r A s s e t s .................................
$ 4 0 ,7 6 6 ,4 9 0 .8 4

«00,000.00

C apital Stock ............................... S
6 0 0 ,0 0 0 .0 0
Surplus .............................................
1 ,4 0 0 ,0 0 0 .0 0
U ndivided Profits ......................
M 10 ,1 0 7 .0 4
Loan R eserv es ............................
4 1 3 ,4 8 2 .4 7
R eserv e for T a x e s ....................
2 5 5 ,0 0 0 .0 0
R eserv e fo r Contingencies . .
5 0 0 ,0 0 0 .0 0
5 5 2 ,0 5 1 .7 0
Unearned Discount ....................
O ther Lia b ilities .........................
2 0 4 ,3 7 5 .2 5
Deposits .......................................... 3 5 ,4 3 1 ,4 7 4 .3 8
$ 4 0 ,7 6 6 .4 9 0 .8 4

OFFICERS
E. E. W IS C H M E IE R , A s sista n t V ice P re sid e n t
M . L. P E A R S O N , A ssista n t C ash ier
B IL L R . H U M M E L , A s sista n t C ash ier
R O B E R T C. M A TSCH , V ice P re sid e n t
a n d T ru s t O fficer
D O R O TH Y M . E A S T IN , T ru s t O fficer
W A L T E R F U N C K , T ru s t Officer
T. D . L E F F L E R , A ss ista n t V ice P re sid e n t
R . D. W R IG H T , A ssista n t C ashier
V IR G IN IA M . R IC E , In sta llm e n t L o an Officer
D O NA LD K E L L A R , A u d ito r
Member Federal Deposit Insurance Corporation

V. P . CU LLEN , C h a irm a n of th e B o a rd
D A L E K E L L E Y , P re sid e n t
JO H N F . O’N E IL L , E xecutive V ice P re sid e n t
a n d T ru s t Officer
F R A N C IS W . KA M M A N , V ice P re sid e n t
W. C. ST E E L E , V ice P re sid e n t
R . K . P E A R S O N , V ice P re sid e n t
E . L. H A U SK N E C H T , V ice P re sid e n t a n d C ash ier
F R A N C E S F L Y N N , V ice P re sid e n t
P A U L A . A B E L , V ice P re s, a n d
F a r m R epresentative


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126
Iow a N ew s
Federal Reserve Bank of St. Louis

L arry J. H irschberg has joined the
Union T rust and Savings Bank in Fort
Dodge as a trust officer, according to
P e t e r G aratoni,
bank president.
M r. Hirschberg,
an attorney, was a
s t a f f accountant
with E r n s t and
Ernst, Des M oines,
and a trust officer
with Valley Bank
and T rust C om pa-*
ny in Des Moines
L.

h ir s c h b e r g

b ^ o re

b e c o m in g

associated with the law firm of Elwood,
Elwood and H irschberg in K eota, his
m ost recent em ployment.
H e is an alum nus of the N ational
G raduate T rust School of N orthw estern
University at Evanston, 111.

J o in s S p en ce r N ation al
Paul H . A lbrecht has joined the
Spencer N ational Bank, Spencer, and
has been nam ed assistant vice presi­
dent of the bank.
M r. A lbrecht was form erly an as - 1
sistant cashier with the D eW itt Bank
and T ru st Co., D eW itt. P rior to that
he was w ith banks in Des M oines and
D ayton.
M r. A lbrecht will be in charge of
the operations division of the bank. H e
is a graduate of the A m erican In s ti-v
tu te of Business, Des M oines, and has
attended banking courses at the U ni­
versity of N orthern Iow a and the
A m erican Institute of Banking.

6 2 , 0 0 0 Bad C hecks
62,000 governm ent checks w orth
19.3 m illion were cashed last fiscal
year by the wrong parties, an A m eri­
can B ankers A ssociation witness told
the H ouse Subcom m ittee on Bank
Supervision and Insurance today.
G eorge A . LeM aistre, vice chairm an of the A B A ’s G overnm ent R elations
C ouncil, testifying on a bill that w ould
require banks to cash governm ent
checks, asked that the bill be am ended
to relieve banks from any loss in­
cu rred in paying checks to the w rong
person if they follow identification
procedures prescribed by the Treasury.
N o rth w e ste rn B a n k e r

you're in first national territory
Find yourself the richest soil in the country. Find the
tallest corn in the world, and the most bountiful fields
of oats. Find the nation’s most valuable livestock in
cattle, sheep and hogs. And you’ll find yourself in First
National Territory.
That’s because our correspondent services reach all
across the richness of Iowa, America’s agricultural
leader.
No matter where you’re located in the Hawkeye State,
you can depend on First National’s correspondent bank
team for specialized financial services.

first n a tio n a l b a n k
of omaha
your territorial bank
S e p te mfor
b e r,
197 2
Digitized
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Federal Reserve Bank of St. Louis

127

A rtist Paints “
A R D Lewis, an international­
R IClyH fam
ous artist, has been com ­
m issioned by the A m erican T ru st &
Savings B ank in D ubuque to paint 12
w ater color p o rtraits of the city’s m ost
beautiful and historic scenes.
T he announcem ent was m ade by
Nicholas J. Schrup, president of the
bank.
Lewis is best know n as the “p ainter
of A m erican cities.” H e has painted
the p o rtrait of 30 cities in the past
three years. H is m ost recent com m is­
sions include M ilwaukee, W ise., W innetka, 111., M inneapolis, M inn, and
M obile, Ala. These w ere sponsored by
banking institutions in those cities.
M r. Schrup in announcing the com ­
mission, said “in having these paintings
done o u r b ank is n o t thinking of any
specific tangible return. W hile the
paintings will have a long-range value,
we thought the real benefit w ould be
for o u r bank to see its environm ent
through the eyes and talents of a great
A m erican artist.”
Specific locations fo r the paintings
have not been selected, according to
M r. Schrup. T h e public has been in ­
vited to help in the selection, he said.
T he public will have an opportunity
to view the com plete series this Fall
at a date to be announced. Follow ing
this initial showing, the paintings will
be offered to schools, the library and
selective audiences fo r showings. Prints
of the w ater colors m ay also be offered
later in various form s by the bank.

E astern B an k er J o in s
M ason City B ank

offer a drive-up teller window
Portra o f DubuqueandIt mwill
ore space for the growing bank.
window, all of which are operated
from w ithin the bank by two tellers.
In addition, the bank now has a 25car parking lot.

FIRST National Bank of Cedar Falls.

Bank officials decided to incorpo­
rate the abandoned drive-up driveway
into a rest-park area. T he form er drive
was covered w ith astro-turf. Two p u t­
ting cups were inserted and evergreens
and an Iowa ash were planted and
benches were installed.
T h e area is widely used by golfers
of all ages to people who stop to enjoy
their noon lunches picnic style, accord­
ing to B ank President H. C. M esserer.

T he building has been designed for
easy additions in the future.

W illia m sb u rg B ank
N am es D irecto r
O tto H uedepohl has resigned as di­
rector and chairm an of the board at
the Farm ers T rust
and Savings Bank
in Williamsburg.
A rnold E. H ue­
depohl of H om e­
stead, has been
nam ed director to
serve the unex­
pired term . H e is
a lifetime resident
of Iow a Township,
A. E. HUEDEPOHL
Iow a County.

U .S. S a v in g s B on d H ead
For G reene C ounty N am ed
Douglas G. M cD erm ott, vice presi­
dent and cashier, H om e State Bank,
Jefferson, has been appointed volun­
teer chairm an of the U nited States sav­
ings bonds program for G reene county.

G ro u n d -b rea k in g H eld
F o r P olk City B ank

B ank P r e sid e n t R etires
A fter 5 0 Y ears in B a n k in g

G round-breaking cerem onies for the
new Polk City Savings B ank building
were held recently.
T he two-level building will be con­
structed by the R . H. G rabau C on­
struction C om pany of Boone. The
com pletion date is set for D ecem ber
18, 1972.

Irw in D. M osher, president of the
W est Liberty State B ank, retired on
A ugust 1. H e had been active in bank­
ing for m ore than 50 years, serving as
an officer of the bank since it was o r­
ganized in 1934.
Mr. George W. D rahos is the new
president.

W illiam D. K illpack has joined the
U nited H om e Bank of M ason City as
a vice president.
M r. Killpack, a native of Persia,
Iow a, comes to the bank from Succasunna, N ew Jersey, w here he was
senior vice president at the F irst N a­
tional State Bank of N orthw est Jersey
as head of m arketing and new busi­
ness. P rior to th at he was with the
Lake County N ational Bank of Painesville, Ohio.
M r. K illpack is a graduate of Iow a
State U niversity.
EMMET County State Bank was recently opened.

F irst N a tion al Has N ew
D rive-In , R est-Park A rea
T he F irst N ational B ank of C edar
Falls recently com pleted drive-in facil­
ities consisting of three D iebold p neu­
m atic tu b e stations and a com m ercial

Iow a N ew s
Digitized128
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Federal Reserve Bank of St. Louis

Complete Ringsted Construction
H E new accom m odations of the
R ingsted branch of the Em m et
C ounty State B ank have recently
opened. T he building is three times the

T

size of the old facility and offers an ex­
panded safety deposit box and newlyform ed night depository as accommo­
dations for customers.
N o rth w e ste rn B a n k e r

■■

»-».■>Ci sÉ'î ■. ..

« /arSUÈè

B O A R D O F D IR E C T O R S
V. O. Figge
President

J. M elvin H u tch in so n
Executive Vice President

Statement of Condition

P h ilip D. A dler
Lee Newspapers

E d m u n d W . B raack
Senior Vice President

E d w ard L. C arm ody
Senior Vice President

June 30, 1972

Jam es K ahl Figge
Vice President

ASSETS

J o h n K ahl Figge
Vice President

Cash
Federal Reserve Funds Sold
United States Government Securities
United States Government Agency Securities
Municipal Securities
Loans
Interest Accruals
Federal Reserve Bank Stock
Bank Premises and Equipment

T h o m as K ahl Figge
Vice President.

M el Foster, Jr.
Mel Foster Company, Inc.

K en n eth C. H a rtm a n
Senior Vice President

E rn est H . K etelsen
Davenport

L a rn e d A. W aterm an

$ 35,741,850.75

10, 000, 000.00
27,014,415.22
9,311,145.30
51,782,363.96
93,975,587.31
1,329,244.61
786,000.00
6,297,140.95

Lane and Waterman

$236,237,748.10

Elenry C. W u rzer
Kahl Properties

LIABILITIES
Capital
Surplus
Undivided Profits and Unallocated Reserves
Total Capital Funds
Reserves for Interest, Taxes, and Other Expenses
Federal Reserve Funds Purchased
Deposits
•rP) 1
T t'T i

$

1 , 200 , 000.00
25.000. 000.00
7,361,744.69

$ 33,561,744.69
2,655,073.29
15.700.000. 00
184,320,930.12
$236,237,748.10

Pisj

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3
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1a venport Bank and B u st Company
D A V EN P O R T , IO W A

L a rg e s t M e m b e r — Io w a In d e p e n d e n t B a n k e rs
■
S e p te m b e r, 1 9 7 2


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Federal Reserve Bank of St. Louis

;SMää-AMfS

. . . . . .

...

........
129

Merchants N ational Hosts Bankers a t G olf Tournament

TORRENTIAL RAINS hit Iowa City during the recent annual Amana Invitational Golf Tourney and halted play at mid-day, chasing
several thousand spectators away as several inches of rain inundated the course in a short time. Cash prizes were divided equal­
ly among the pro golfers. Merchants National Bank of Cedar Rapids provided an off-the-course rest stop in a Winnebago van for
visiting bankers, where they could rest, get a sandwich and a refreshing drink. Later in the day The Merchants National hosted a
dinner at The Highlander dinner club for approximately 100 bankers. Pictured during the evening social hour were these bankers
left to right: John Mangold, sr. v.p., Merchants Natl.; H. O. Zip Zimmerli, dir., and Eugene Robison, exec. v.p. & cash., both with
Swisher t&s , Swisher; Burtwin Day, v.p., Iowa State B&T, Center Point; Dick Weeks, v.p., Natl. Bank of Washington; Rudy Leytze,
a.c., and Terry Martin, a.v.p., Merchants Natl.; Gerry Cassabaum, v.p., Taintor Savings, New Sharon; Larry Arendt, cash., and his
brother, Don Arendt, a.c., both with Gibson Savings, Gibson, and Jerry Trudo, a.c., Merchants Natl.

B anks C on trib u te to 4-H
E arl H enderson, vice president of
the U nion T ru st & Savings B ank, F o rt
Dodge, recently reported th at 79 banks
in Iow a contributed a total of $6,225.-

r

00 to the Iow a 4-H F oundation in
1971.
M r. H enderson, who is chairm an of
the Iow a Bankers A ssociation’s 4-H
com m ittee, said that m ore banks p ar-

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Spacious suite with its own all­
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for gracious entertaining.

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30 Floors of Dramatic Suites
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SURPRISINGLY ATTRACTIVE RATES
W RITE TO DAY FOR COLOR BROCHURE AND TAR IFF

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1300 NORTH ASTOR STREET, CHICAGO, ILLIN O IS 60610
Instant Reservations — Dial Toll Free: 800/AE 8-5000

fo w o News
Digitized 130
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Federal Reserve Bank of St. Louis

P lea sa n tv ille B ank A dds
W alk-U p T e lle r W in d o w
A bout 400 people recently attended
an open house at the Pleasantville
State Bank, w hich has been rem odeled.
T he people came to see the w alkup teller window that was added to the*
bank. T he window is open before and
after bank hours each day.
T he open house was held on con­
junction with two other businesses that
had rem odeled buildings on M ain
Street.

F irst H a lf Sales fo r
E and H B o n d s

The elite atmosphere of an exclu­
sive international hotel.

for true Parisienne tone of

ticipated w ith a greater total of con­
tributions than in any year since 1968,
when the program was first initiated. -

Sales of Series E and H Savings
Bonds for the first six m onths of 1972
cam e to $3.2 billion — the best since
1952, the year the H Bond was in­
troduced, and 16.6 percent above the
same period last year.
Fiscal year 1972 sales of $5.9 bil­
lion set a 17-year record, and resulted
in a $2.9 billion increase in the am ount
of Savings B onds outstanding.
T he cash value of Series E and H
Bonds outstanding increased by $264
million, am ounting to a record 55.9 bil­
lion. W ith the inclusion of Freedom
Shares — w ithdraw n from sale on July
1, 1970 — holdings now total $56.5
billion, an all-time peak.
N o rth w e ste rn B a n ke r

Our Inside Men
help our Outside Men
serve you better.
y

RICK ANDERSON

JACK RAMEY

TOM ROTH

Roth, Ramey, and Anderson don't just sit at
the home bank in Chicago. One week out of
every month, they join our outside men who
call on you regularly. They get a first-hand
knowledge of your needs and problems: Like
over-line loans, loan counseling, collections and

clearings, as well as operational counseling.
Roth, Ramey, and Anderson have the re­
sponsibility to work with the outside men to
quickly and personally handle just about any
of the problems or questions our correspon­
dents have. And they do.

You work face to face with our Inside M en ,
as well as our knowledgeable Outside M en .

CY KIRK

MAX R0Y

LaSalle...the bank on the move ©

A FULL'
SERVICE
BANK.

LASALLE NATIONAL BANK, LA SALLE BANK BUILDING, 135 S. LASALLE ST., CHICAGO, ILLINOIS 60690 • PHONE (312) 443-2774


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S e p te m b e r, I 9 7 2
Federal Reserve Bank of St. Louis

131

Arthur J. Petit, retired trust officer
at the Iowa-Des Moines National
Bank, died of a heart attack this past,
month while vacationing in Arizona.
Mr. Petit, 69, had retired from the
bank in 1969. A member of the Iowa
Bar Association, he was a graduate of
the National University of Law in
Washington, D. C.
* * *
<
Two vice presidents and two assist­
ant vice presidents have been named
at the Northwest Des Moines National
Bank, according to David G. Wright,
president of the bank.
The new vice presidents are Larry
Rolfstad and William H. Withey. M r /
West Des Moines will remain open as
Rolfstad is manager of the bank’s
a full service facility under the direc­
Johnston office and is a commercial
tion of Keith Ryan, vice president.
loan officer. Mr. Withey is head of
West Bank had a 33% increase in
marketing and public relations at the
assets during 1971, and over a 50%
bank.
increase in loans.
Eloise McClure and Richard Remer "
* * *
were
named assistant vice presidents.
Keith P. Eaton, 46, vice president
of the Valley Bank and Trust Co., died Mrs. McClure works in the real estate
of cancer recently at a Des Moines mortgage loan department, and Mr.
Remer will manage the installment
hospital.
loan
department.
Mr. Eaton had
* * *
been employed at
Orville
Gore,
68, retired assistant
the bank since
vice
president
at
the
Iowa-Des Moines
1950. He was
National
Bank,
died
of an apparent
named assistant
heart attack recently in Mason City.
vice president in
Mr. Gore was competing in a state
1961 and a vice
senior
golf tournament when he col­
president in 1968.
lapsed
on a green. He was a former
He was a gradu­
president of the Iowa Mortgage Bank- v
ate of the Uni­
K. P. EATON
ers Association.
versity of Wiscon­
* * *
sin Graduate School of Banking and
B.
C.
Grangaard,
president of Cen­
the American Institute of Banking.
tral National Bancshares, Inc., has an­
nounced the authorization of a new
class of stock, Class A Convertible
Stock. The purpose in establishing this ‘
new class was to enable International
Bank, to convert its holdings into the
new non-voting class. This would re­
duce the percentage of voting stock in
the company by International Bank to
less than 5 per cent, so that Interna- Y
tional Bank will no longer be consid­
ered a Bank Holding Company as far
as its interest in Central National is
concerned.

lies Moines News
AVID L. Miller, president of the
D
West Des Moines State Bank,
announced the scheduling of open
house from September 11 through Sep­
tember 16 in the new West Bank head­
quarters recently occupied at 22nd
Street and Westown Parkway in West
Des Moines.
The bank occupies 10,000 square
feet of the new four story West Bank
Building. The bank utilizes the main
floor plus 2,000 square feet of the sec­
ond floor with provision to occupy ad­
ditional space as growth demands.
The exterior of the building is an­
odized bronzed aluminum, with reflec­
tive mirror windows. The anodized
bronzed aluminum is carried into the
building lobby and on into the bank.
The interior of the bank is of unusual
design featuring a split level banking
area and the latest in career apparel.
Mr. Miller reported that the bank’s
former location at 63rd and Grand in

DOMINATING the skyline of the western end of Des Moines is the new home of the
West Des Moines State Bank, pictured above. The anodized bronzed aluminum struc­
ture also features three Mosler drive-in units and a 24 hour depository. Hunter, Rice
and Engelbrecht were the architects for the building, and Weitz Construction Co. was
general contractor.

132
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Federal Reserve Bank of St. Louis

Agreement in principle for the „
planned affiliation of United Home
Bank and Trust Company of Mason
City, Security State Bank of Algona,
and First State Bank of Britt with Cen­
tral National Bancshare, Inc., of Des
Moines, was announced recently by R.
H. Isensee, chairman of the three
banks and by B. C. Grangaard, presiN o rth w e ste rn B a n k e r

When you
need a little help
call us
on our toll free
w ats
number

800 - 362-1615

Correspondent Bank
Department

"C
SDigitized
e p te m b efor
r, FRASER
1972

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Federal Reserve Bank of St. Louis

99
Central National Bank 8- Trust Com pany
LO C UST A T S IX T H A V E N U E , DOW N TO W N DES M O IN E S , PH O N E 2 4 3 -8 1 8 1 , M E M B E R FD IC .

133

dent of Central National Bancshares,
Inc.
Details of the arrangements were
not disclosed. Mr. Grangaard said that
the proposed affiliations are subject to
approval of appropriate federal and
state supervisory authorities. No man­
agement changes are contemplated.
Central National Bancshares, Inc.
has as its principal subsidiary the Cen­
tral National Bank and Trust Com­
pany of Des Moines, and is in the
process of applying to the Federal Re­
serve Board for approval of the affilia­
tion of the Adair County State Bank
of Greenfield, la. The total resources
of the three banks becoming affili­
ated with Central National Bancshares
exceeded $70 million on June 30,
1972.
These, together with the resources
of the Adair County State Bank,
Greenfield, and the Central National
Bank and Trust Company, Des
Moines, will bring the total resources
of the banks affiliated with Central Na­
tional Bancshares, Inc. to a figure sub­
stantially in excess of $300 million.
Following are resource figures as of
mid-year 1972. (Last three 000 omit­
ted)

Congratulations to

FIRST SECURITY BANK & TRUST
C h a rle s City, Io w a
Merten J. K lau s, President

Distinctive bank identification custom
designed and fabricated for your bank.
Service is an important part of our
name!
Write or Call

TRIAD SIGN SERVICE
507— 288-6580
Rochester, Minnesota 55901

134
low<x News
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Federal Reserve Bank of St. Louis

Assets
Central National $261,297
United Home . .
49,196
Security State . .
13,138
First State of
B ritt.............
11,130
Adair Co. State
9,753

Deposits
$213,470
44,573
11,855
9,738
8,735

Four new officers have been named
at the lowa-Des Moines National Bank
by the board of directors.

L. MEYER

J. I. MURANO

R. E. WHITE

T. QUINLAN

Larry E. Meyer and John L. Murano were named personal banking of­
ficers. Mr. Meyers, who joined the
bank in 1969, has been assistant man­
ager of the bank’s Euclid office. Mr.
Murano has been assistant manager of
the Douglas office. He joined the bank
in 1969 in the Master Charge depart­
ment.
Ronald E. White was named sys­
tems officer. A graduate of Drake Uni­
versity, he joined the bank in 1965 in
the data processing department, and
was named senior systems analyst last
year.
Tom L. Quinlan was appointed
credit officer. He joined the bank as
credit supervisor for Master Charge in
1969, and was named credit manager
in 1970. He is currently president of
the Des Moines chapter of the Ameri­
can Institute of Banking.
* * sfc
A new Eastgate Office will be
opened this fall by Bankers Trust, Des
Moines, according to John Ruan,
chairman of the board, and Robert J.
Sterling, president.
Final approval from the Federal De­
posit Insurance Corporation and the
C ir c le N o .

31

F o r M o r e I n fo r m a tio n

State Superintendent of Banking has
been received. The office will be es­
tablished at 1538 East Euclid in the
Eastgate Shopping Center.
“Population growth and resultant
business expansion has created a need
for greater banking convenience in the
area for our customers,” Mr. Sterling
said. “New banking legislation became
effective last month, and it is our aim
to accomplish this objective at th
earliest possible time. Accordingly, a
complete financial building banking
facility has been purchased from a ma­
jor bank equipment supplier, Diebold,
Inc., that will be operational in ap­
proximately 45 days”.
The Diebold product is a permanent,
factory-built bank building complete
down to bulbs in lighting fixtures, ac­
cording to Mr. Sterling. It will be open
for business within 15 days of arrival
on the site, now under preparation.
Since the erection technique employed
has attracted much interest, the pub­
lic will be informed of the building’s
arrival and invited to watch the assem­
bly process, he said.
Vawter & Walter, Des Moines, is
the general contractor. Architects for
the project are Kendall-Griffith-Russell
Artiaga, Des Moines.
* * *
After the August meeting of the
West Des Moines State Bank board
of directors, Bank President David L.
Miller announced the election of two
new officers to the West Bank staff.

c. cox

W . A. PRICE

Charles Cox was elected assistant
cashier of the bank. Mr. Cox was foi>
merly associated with the Merchant’s
National Bank of Cedar Rapids, for
the past ten years with the lowa-Des
Moines National Bank and most re­
cently as manager of their Euclid of­
fice. He is a member of the Des
Moines Jaycees and the American In­
stitute of Banking. He attended Par­
sons College, Drake University and
graduated from Bank Marketing
School at Northwestern University.
William A. Price was elected trust
officer. Mr. Price was formerly with
N o rth w e ste rn B a n ke r

the trust department of the Valley
Bank and Trust Company.
>

*

*

*

Mrs. Ruth B. Klotz, assistant vice
president and trust officer of Bankers
Trust Company,
was named presi­
dent-elect of the
Soroptimist Fed­
e r a t i on of the
Americas, Inc. for
the 1972-74 term
at its b i e n n i a 1
c o n v e n t i o n in
C h i c a g o . Mrs.
Klotz will assume
the presidency of
the organization at its next biennial
convention to be held in Portland, Ore­
gon in 1974.
Mrs. Klotz, a graduate of Drake
{University College of Business Admin­
istration and the Drake Law School,
was in the practice of law in Des
Moines for eight years before assuming
her position with Bankers Trust. She
has held other Soroptimist Federation
offices, was regional governor of North
Central Region 1964-66 and president
of the Soroptimist Club of Des Moines
1962-63.
Soroptimist is a world-wide associa­
tion of executive business and profes­
sional women which offers a practical
means of participating in community
jetteraient and understanding, pro­
moting high standards in business and
professional life. The Soroptimist Fed­
eration of the Americas, Inc. is com ­
posed of 913 clubs with about 31,000
.members in 12 countries in North,
South and Central America as well as
m Japan, South Korea and the Phil­
ippines.
*

*

O u r securities
analysis team
hasn't lost for
over a decade
That’s probably because we don t
believe in playing our games one at
a tim e . S ecu rities a n a lysis, lik e
every other kind of individualized
a t t e n t i o n we o f f e r in p o r t f o l i o
management, is an in-depth, downthe-road p ro p o s itio n at N a tio n a l
Boulevard. We tailor our advice to
your present and future needs while
strengthening yo ur entire invest­
ment program.
To get National Boulevard to bat
for you, call Charlie Weeks. The full
story of our investment p o r tf o lio
analysis services co u ld mean in ­
creased investment income for you.
A n d that’s no pastime.

NATIONAL BOULEVARD
BANK OF CHICAGO IS
400-410 N. M ichigan Awe. (312) 467-4100 • M em ber FDIC

*

Neil W. Goeppinger has been named
assistant cashier of the First Federal
State Bank, Des Moines, it was an­
nounced by David Taylor, president.
Mr. Goeppinger had previously been
with the First National Bank, Iowa
City.
He is a graduate of Simpson College,
-Indianola, and has completed course
work at the Graduate School of Busi­
ness at The University of Iowa. He has
also studied at Iowa State University
and the University of the Americas,
Mexico City. He was born in Ames but
grew up on a farm near Boone, Iowa,
graduating from Boone High School in
1963.

S e p te m b e r, 1972
https://fraser.stlouisfed.org
■I miini1 i m\ Bank of St. Louis
Federal Reserve

Iowa News

135

Iowa Bankers Association To Advertise
“Full Service Banking on Statewide TV
”

44TOWA Full Service Banks” will
be on television again in Octo­
ber and November.
Some 272 30-second commercial
messages will be telecast on 10 TV sta­
tions on “prime” evening times and
will reach an estimated 18-million
audience.
Three different commercials — pro­
duced by Thomas Wolff Associates,
Inc., the Iowa Bankers Association’s
public relations and advertising agen­
cy, with Northwest Teleproductions —
dramatize full service banking in com­
petition to other financial institutions
and “know your banker.”
The total program is under the di­
rection of the Public Relations Com­
mittee of the Iowa Bankers Associa­
tion, of which Dean A. Knudson, pres­
ident of University Bank and Trust
Co., Ames, is chairman.
The series will round out the Iowa
bankers’ first full year of bank adver­
tising — at a total cost of some $100,000, raised through special voluntary
contributions by the great majority of
bank members of the Iowa Bankers
Association.
Iowa bankers first entered the state­
wide advertising arena with a 9-sta-

tion “State Fair Special” in August,
’71, and a six-week series of spots last
fall. This year, the Iowa Full Service
bank story was told through 60-second
testimonial commercials in news pro­
grams on 11 stations during Febru­
ary, March, April and May and
through the “Something for the Girls”
athletics special in March.
The fall series will continue to use
some news programs, but the bulk of
the shorter commercials will be seen
by the even larger audiences watching
such network and syndicated TV
shows as Flip Wilson, Ironside, Carol
Burnett, All in the Family, Bonanza,
Sonny and Cher, Dean Martin, Law­
rence Welk and the network movies.
Estimated audience impressions on the
shows and times scheduled are 2,300,000 per week.
The following stations are sched­
uled to carry the Iowa Full Service
Bank commercials October 1 to No­
vember 25: —
WOC, Davenport; WMT, Cedar
Rapids; KWWL, Waterloo; KRNT,
Des Moines; WOI, Ames; KTVO, Ot­
tumwa; KGLO, Mason City; KVFD,
Fort Dodge; KCAU, Sioux City; and
KMTV, Omaha. — End

Bank Vice P re sid e n t
Is Elected D irector

private offices, lobby, tellers counters,
safety deposit vault, bookkeeping facil­
ities and a drive-up window. The lower
level will include employees lounge,
restrooms, storage areas, multi-pur­
pose room and mechanical equipment
space. Completion is expected by the
end of the year. The Kirk Gross Com­
pany of Waterloo is the bank planner
and contractor for the project.

Larry A. Mindrup, vice president of
the Poweshiek County National Bank,
in Grinnell, was recently elected to the
board of direc­
tors, according to
Max A. Smith,
president.
Mr.
Mindrup
joined the bank
in 1966 as an of­
ficer trainee, after
serving as farm
mortgage f i e l d
l . a . m in d r u p
representative for
Metropolitan Life
Insurance Company.

W ork Begins on E ar ling
F arm ers T ru st & Savings
Plans are complete and construction
is now underway on a new Farmers
Trust and Savings Bank in Earling, ac­
cording to Mark A. Langenfeld, presi­
dent.
The new facility will be of modem
design, with 2208 square feet of space
on the banking level, including three

low a News
136
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Federal Reserve Bank of St. Louis

ume and open commitments for 1971
and the early part of 1972 as well a?
historical price data on all futures con­
tracts traded on the C.M.E.
In addition, it includes a wide rangt
of statistical information on shell
dried, and frozen eggs, frozen pori
bellies, butter, cheese and other dair)
products, live cattle, live hogs, feedei
cattle, boneless beef, dressed beef^
chickens, lumber, grain sorghum
(milo), turkeys, potatoes, and skinnec
hams.
The yearbook is available by mail
at $4.50 postage paid, by writing Mar
ket News Department, Chicago Mer­
cantile Exchange, 110 N. Franklin
Street, Chicago, IL 60606.

Jo in s W averly Bank
Fred W. Hagemann has been ap­
pointed assistant vice president in the
commercial loan department of the
State Bank of Waverly, Waverly.
Mr. Hagemann recently received
his Masters Degree in Business Ad­
ministration from Drake University in
Des Moines. He is also a graduate of
Wartburg College, Waverly, Iowa, and
has had four years’ experience as an
examiner for the Federal Reserve Bank
of Chicago.

Storm Lake Bank Seeks
Detached Facility
The Citizens First National Bank of
Storm Lake has filed with the Regional
Administrator of National Banks in
Kansas City a request for permission
to establish a detached facility at 329
Flindt Drive in Storm Lake.

Fields Elected to B oard
Henry W. Fields, Sr. has been elect­
ed to the board of directors of the Tipton State Bank, replacing J. F. Caster­
line. Mr. Fields is president of Fields
Lumber Co., Inc.

O ffer Chicago M ercantile
Y earbook O n F u tu re s
The 1971-72 yearbook of the Chi­
cago Mercantile Exchange, the largest
and most comprehensive in the ex­
change’s history, has been published
and is now available to the public.
The 363-page, soft-cover book con­
tains a number of new and updated ta­
bles. These include price ranges, vol­
N orthw estern Banker

Beef-Grain Call
New Livestock
Business Service

HEN THE Livestock Business
Advisory Services Division
(LBAS) opens for business on Jan­
uary 2, 1973, one of the staff members
will answer the first phone call with a
cheery “Beef-Grain Call — May I help
you?”
And one of the most sophisticated
livestock business services ever offered
to the agri-business community will be
underway.
The incoming calls will range from
Before many months pass, after that such questions as: “Should I buy or
opening call, LBAS expects to be han­ sell — at what price and when? I need
dlin g hundreds of such calls daily from 500 head now and 6,000 in 90 days.
farmers, ranchers, feeders, meat pack­ Where can I find them? They said I
ers, feed manufacturers, grain elevator could feed my steers for 23 £. What do
operators, banks and lending institu­ you think? What will the soybean
tions, commodity firms and traders, crush and corn prices be from October
management and investment firms,
public markets and many other agri­
business oriented firms.
Beef-Grain Call will be offering spe­
cific advisory services in the major
areas of cattle markets, cattle availabil­
ity, grain and soybean markets and fi­
nancial consultation. These services
^are available on both an annual and
a seasonal basis, depending on the size
and type of operation involved.

W

Well-Informed Staff
The staff will be well-informed in
the areas of pork, beef, soybeans,
grain, poultry, financing, legislation,
^foreign markets and weather condi­
tions by regions, according to William
C. Helming, general manager of the
American
Hereford
Associations
(AHA) new division. This skilled
team, which is presently being assem­
bled, will pool their many years of ex­
perience into a knowledge base and
reservoir of experience for all BeefGrain Call clients to draw upon dayby-day, he said.
Here’s how it will work: From any­
where in the United States, LBAS cli­
e n ts will be able to call one of several
nation-wide toll-free in-WATS tele­
phone numbers and talk directly to a
Beef-Grain Call expert in Kansas City.
Beef-Grain Call will receive calls 15
hours a day from 7 a.m. to 10 p.m.
(Kansas City time), Monday through
" Friday.
“As a supplement to the toll-free
telephone service, we will send to all
of our clients, by first class mail, a
weekly one-page market bulletin that
will highlight and summarize our mar­
k e t forecasts, analysis and trends,” Mr.
Helming said.

Se p te m b e r, 1 9 7 2
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

—

rected to the Association’s members
and others in the livestock industry.
The study conducted by the staff of the
American Hereford Association found
that instant access to a variety of statis­
tics and information, boiled down into
decision-making material, is one of the
most pressing needs of members and

AHA PRESIDENT Joe Bud, Big Piney, Wyo., center, studies a copy of the LBAS an­
nouncement, as Bill Helming, at left, LBAS general manager and W. T. Berry, Jr.,
AHA executive vice president, look on.

to January? Should I take a futures
position for December and February?”
to complex questions of a long-term
nature that will require knowledge of
current prices and effects of rainfall
in a certain area, as well as the effect
of new laws, recent changes in import
quotas, trade prospects with Russia,
current export statistics and the change
in tariff rates in the European common
market.
It is the intent of LBAS to be able
to efficiently and instantly handle any
of these questions, simple or complex,
in stride, according to Mr. Helming.
The need for this type of service was
determined through market surveys di­

others in the livestock industry and re­
lated agri-businesses.
“A breed association ‘on the go’
must be adaptable to the times and
maintain very close liaison with both
its breeders and those with whom they
do business,” said W. T. Berry, Jr.,
AHA executive vice president. Our
Association and its members produce
seedstock. The Beef-Grain Call service
is just one more example of a leader
doing what it should do — helping its
members and the entire livestock in­
dustry grow, improving on the quality
and accuracy of decision-making
which ultimately, better serves the con­
sumer. ” — End

137

M ercantile Bancorporation Notes Milestone

C
Career Apparels, Inc.....................................
22
Central National Bank and
Trust Company — Des Moines ................... 133
Chiles, Heider & Co., Inc................................ 102
City National Bank and
Trust Co. — Kansas City ............................ 32
CMI Credit Insurance, Inc................................ 18
Commerce Bank of Kansas City ................... 31
Continental Illinois National Bank
and Trust Company ................................ 70-71
Cummins-Chicago Corporation ........... 7, 26, 57
D
Dain, Kalman & Quail, Inc............................ 82
Daly, C. Wm., & Co......................................... 106
Davenport Bank and Trust Company ........... 12§t
DeLuxe Check Printers, Inc............................
4
Die bold, Incorporated ..................................... 13
Doane Agricultural Service,Inc.......................... 45
Downey, C. L., Company .............................. 25
Drovers National Bank of Chicago ............... 119
E
Employers Mutual Companies ........................ 125.

A SPECIAL CERTIFICATE was presented recently to Dr. and Mrs. Norman W. Freiberger
(center), who as joint tenants have become the 10,000th shareholder of Mercantile
Bancorporation, Inc., St. Louis. Making the presentation is Harrison F. Coerver (left),
president of the multi-bank holding company. At right is W. Boardman Jones, Jr., vice
chairman of the Mercantile Trust Company, lead bank in the holding company. Dr.
Freiberger is a dentist in suburban St. Charles, Mo.

F
First National Bank — Aberdeen ...................
First National Bank — Burlington ...............
First National Bank — Chicago ...................
First National Bank — Kansas City ............
First National Bank — Lincoln ....................
First National Bank — Minneapolis ............
First NationalBank — Omaha .........................
First NationalBank — St. Jo sep h .....................
First National Bank — St. Louis .................
First National Bank and
Trust Company — Tulsa ............................
First National City Bank — New Y o rk .........

4-k
126'
53
Ill
109
75
127
112
68
28
15

*

G
Gross, Kirk, Co. ............................................... 124
H
Harris Trust and Savings Bank ....................
Heirloom Bible Publishers ...........................
Heller, Walter E., & Company ....................

59
8
55

I

SBC A w ard to First M inneapolis

Imperial 400 Motel ......................................... 12
Interstate National Corporation ..................
63.
Iowa-Des Moines National Bank . . . . . . . . . . 142
Iowa Legal Blank & Printing Co................... 136
K
Kooker, E. F., Associates ................................. 126
L
LaSalle National Bank ..................................... 131
Lee Career Apparel .........................................
9
Life Investors Insurance Company
of America ...................................................... 122
Lincoln Benefit Life Company ........................ 108
M
Mail Order Mart ............................................. 58k
Mercantile Trust Company ............................ 64
Merchants National Bank — Cedar Rapids . .
2
Midland National Bank — Minneapolis . . . . 79
Murdock, David H., Development Company 23
N
National Bank of Commerce ........................ 105
National Bank of Waterloo ............................. 121
National Boulevard Bank of Chicago ........... 135,
National Fidelity Life ..................................... 118
North Central Life Insurance Company . . . . 81
Northern Trust Company ................................
3
Northwestern National Bank — Minneapolis 72
Northwestern National Bank — Omaha . . . . 103
Northwestern National Bank — Sioux City . . . 104
Northwestern National Bank — Sioux Falls . . 86
Northwestern National Bank — South St. Paul 80
NYTCO Services, Inc......................................... 27

O
IN RECOGNITION of its outstanding contributions to the development and advance­
ment of the computer time-sharing industry, First National Bank of Minneapolis re­
cently received a plaque from The Service Bureau Corporation, headquartered in New
York City. Left to right at the presentation were: Steven Olson and William Moody, SBC
marketing executives; Philip L. Jones of First Minneapolis’ management science di­
vision; and John L, Erickson, vice president and controller of the bank.
American National Bank and
Trust Company — Chicago ....................... 67
American National Bank and
Trust Company — St. Paul ........................ 77
American Polled Hereford Association ......... 48
American Shorthorn Association ................ 49
American Trust and Savings Bank — Dubuque 117
ANKONY ...................................................
34
Astor Tower Hotel ............
130

o f

A O V F l t T I S F IIS

B

SEPTEMBER, 1972
A

Acorn Printing Company ................. ...............

Allied Safe & Vault Company, Inc. ......... ..


https://fraser.stlouisfed.org
138
Federal Reserve Bank of St. Louis

12

11

Bankers Trust — Des Moines ........................ 114
Bank of New York ................... ....................... 51
Brandt, Inc. .......................
17
Brown Swiss Enterprises ................................ 46
Burrell & Associates ......................................... 16

Omaha National Bank . .
Omaha Printing Company
Ozark Air Lines ...........
R
Rahel, Knack & Company
Rand, McNally ...............
S
Security National Bank — Sioux City ........... 141
Security Pacific B a n k ......................................... 95
Smith Barney & Co. Inc.................................. 24
T
Tension Envelope Corporation ........................ 26
Toy National Bank — Sioux City ...........
107~
Triad Sign Company ......................................... 1Q4
U
United Bank of Denver ................................... 93
United States Check Book Company ........... 110
U. S. National Bank — Omaha . . . . . . . . . . 98
V
Valley Bank & Trust Company — Des Moines 123
Van Home Investments, Inc. ........................ 113
Van Wagenen, G. D., Co................................ 14
Y
Yale Bank Services Division ............... 112, 136

Northwestern Banker,

As Orville said toWilbur,
“Ozarkdoes things Wright."

Now, now, O rv ille ... m ustn’t point. But since
you m entioned it, Ozark is going places in
a big way these days. 1971 was an outstand­
ing year fo r O zark. We added new flig h ts
and im proved some o th e rs ... and we added
to and im proved existing service wherever
and whenever we could.

W e’ve set our sights even higher f o r '’7 2 ...
because, more than anything else, we want
the passengers we do right by each year to
think of Ozark as . . .

N IC E G O IN G !

Call Ozark Air Lines or your travel agent.

OZARK

AIRUNES

Up there with the biggest

Septem ber,

t9 7 2


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Federal Reserve Bank of St. Louis

139

Movie M anners
John was enjoying the movie until
the two women in the row behind him
began to talk.
“Pardon me,” said John politely,
turning around, “but I can’t hear a
word.”
“Listen, mister,” growled one of the
women, “what we’re talking about is
none of your business!”

asked what he had fed the animal. The
man replied: “Oh, just a little yeast
to make my doe rise.”

Input and Output
Joe: “What’s wrong with the com­
puter?”
Jim: “Someone dropped a rubber
band in it and it’s been making snap
decisions.”

Pizza P in ch
Good neighbor Sam comes up with
some strange facts, like: “Did you
know it takes two hours to get an­
chovies out of your hair?” I said,
“Sam, how do you come by informa­
tion like that?” He says, ‘‘You pinch
that waitress in the new pizza parlor
in town and you’ll find out., .

is average! If he wanted to do more
than he’s paid for, then he’d be an ex­
ceptional man — and it is the excep­
tional man who is in demand. He soon
makes what he’s worth too.
i

Nice Going
The young groom found his pretty
bride weeping when he came home
from the office.
“I feel terrible,” she told him. “I was*
pressing your suit and I burned a hole
right in the seat of your trousers.”
“Forget it, honey,” he said. “You
must have forgotten that I have an ex­
tra pair of pants for that suit.”
“Oh, I remembered that,” answered
the bride. “I cut a piece of them to
patch the hole.”

L asting F rien d sh ip s
First businessman: “How on earth
do you manage to meet expenses?”
Second businessman: “My wife in­
troduces them to me.”
(

T h e B usiness Cycle
“Now that your opening sale has
closed, what are you going to do
next?” asked one merchant of another.
“What is there to do? We’re going
to have the opening of our closing
sale!”

A P h ilo so p h y Lesson
If you see good in everyone, you
may be an optimist. Then again, you
may be nuts.

T h in k T a n k ?
The reason ideas die quickly in
some heads is because they can’t stand
solitary confinement.

Jk

On to Biology
Likely Story

Rising Doe

A mother found a wrinkled, dirty,
much-handled note in her younger
son’s pocket. The note stated briefly
the instructions, “puff, puff, draw in,
puff.”
Thinking he must be taking up
smoking, she checked up on her son.
“What is your explanation of this?”
With great dignity he answered,
“Mother, 1 am learning The StarSpangled Banner on the mouth or­
gan.”

One morning a man went out to feed
his pet deer, but it wouldn’t get up. He
rushed into the house and brought
something out and fed it to the deer.
The deer got up and the neighbor

The average man is afraid of doing
too much work — and that’s why he

A T actfu l Lesson
Many a person has gotten into trou­
ble by not expressing himself well.
There’s a world of difference be­
tween “You look like the breath of
spring” and “You look like the end of
a hard winter.”

Digitized for
140FRASER
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

S upply an d D em and

The kindergarten teacher was in­
structing the youngsters in her class as
to the proper classroom etiquette.
“If anyone must go to the bathroom
during the day, please raise your,
hand,” she said.
Piped up one of the children: “How
does that help?”

A Likely Story
Teacher: “Why are you so late?” *
Johnny: “It’s so windy outside that
every time I took a step forward, I slid
back two.”
Teacher: “At that rate, how did you
get here at all?”
Johnny: “I finally gave up trying
and turned around to go home.”
Northwestern Banker

the thing about
correspondent
bankers
It doesn’t take a genius to know that correspondent
bankers are experienced professionals who must deal
effectively with your banking problems.
The thing about Security National’s correspondent bank­
ers is service. The problem solving services of Gene
Hagen, Ed Leahy and Jim Hongslo provide the right com­
bination of banking experience and knowledge to serve
you better.

S EC U R IT Y
NATIONAL

R /A\ ]M
I / 6TH AND p|ERCE
D
\ l\ SIOUX CITY, IOWA

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

Available:
Banking
Expert
Computer expert, loan ex­
pert, bank operations expert,
systems expert, trust expert,
bond expert . . . whatever
your needs, we have an ex­
pert to help you.
They’re all available and
just a phone call will bring
the one you need to your
bank. The number to call is
284-8686.

Why not correspond with
Dale Luckow, Bob Buenneke, George Harnagel,
Brock Hessing, or Bernard
Kersey?

TheVSg Bank
IOWA-DES MOINES NATIONAL BANK
-


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

SIXTH & WALNUT 50309

PHONE 284-8686