12111. Security State Bank (Brantford, ND)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
July 18, 1921
Location
Brantford, North Dakota (47.598, -98.923)

Metadata

Model
gpt-5-mini
Short Digest
4f0f02a3

Response Measures

None

Description

The bank is described as the closed Security State bank of Brantford and a receiver was appointed; articles document substantial theft/peculations by officers and subsequent legal actions against the bonding company. No article describes a depositor run prior to closure, so this is a suspension/closure (receiver assigned) driven by bank-specific adverse information (embezzlement). Dates: shortage discovered and interest calculation reference July 18, 1921 as the relevant date.

Events (3)
1. July 18, 1921 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank closed after discovery of substantial shortages/peculations (theft) by officers Dewey Miller and Nels Ostrum; shortage over $16,000 found in books; receiver appointed by governor.
Newspaper Excerpt
closed Security State bank of Brantford ... interest on those sums from the 18th of July, 1921.
Source
newspapers
2. March 1, 1923* Receivership
Newspaper Excerpt
The case was brought by C. H. Reimers, at that time receiver for the bank under an appointment from the governor. When it was called in district court in Foster county at the March, 1923, term ...
Source
newspapers
3. September 15, 1924 Other
Newspaper Excerpt
Judgment for an amount approximating $20,000 will be entered against a New York insurance firm and ultimately in favor of depositors in the closed Security State bank of Brantford ... The verdict holds the bonding firm liable for money appropriated from the bank's funds by Dewey Miller and Nels Ostrum, active officers of the institution at the time it closed.
Source
newspapers

Newspaper Articles (2)
1. September 15, 1924 The Bismarck Tribune Bismarck, Mandan, ND
Article from The Bismarck Tribune, September 15, 1924

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Article Text

SURETY FIRM HELD LIABLE TO DEPOSITORS Judgement to be Entered in Court for About $20,000 For Brantford Bank Carrington, N. D., Sept. 15.--Judgment for an amount approximating $20,000 will be entered against a New York insurance firm and ultimately in favor of depositors in the closed Security State bank of Brantford, as a result of the decision by C. W. Burnham, referee, Monday, in his report to J. A. Coffey, judge of the district court, in chambers at Jamestown. The verdict holds the bonding firm liable for money appropriated from the bank's funds by Dewey Miller and Nels Ostrum, active officers of the institution at the time it closed. The company, the National Surety Co. of New York, had a $10,000 bond on each of the two officers and judgment was taken for $8,101.84 each on the two bonds, together with 6 per cent interest on those sums from the 18th of July, 1921. The total amount will be around $20,000. Theft Charged Officers The amount of the alleged peculations was determined by a careful examination of the bank books which disclosed a shortage of over $16,000. The case was brought by C. H. Reimers, at that time receiver for the bank under an appointment from the governor. When it was called in district court in Foster county at the March, 1923, term, it was agreed that as a preliminary a long and careful audit of the bank's books must be made and Judge Coffey at that time appointed Attorney C. W. Burnham of Carrington as referee to hear the testimony and go over the books with the attorneys. The case was tried before the referee a year ago last July. Record Verdict Here Lawrence, Murphy & Nilles appeared in the case for the eastern insurance company, while C. B. Craven of Carrington represented Mr. Reimers as receiver. It is one of the largest verdicts ever obtained in a Foster county court action. It is not announced at this time whether or not the insurance company will appeal.

2. August 7, 1925 The Bismarck Tribune Bismarck, Mandan, ND
Article from The Bismarck Tribune, August 7, 1925

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Article Text

# Supreme Court Decisions From Stutsman County A. E. Albaugh, Plaintiff and Appellant, vs. Osborne-McMillan Elevator company, a corporation, Defendant and Respondent. Syllabus: When an elevator company files in a district court a sworn statement showing that it holds storage tickets for grain, which is claimed by different persons, and requests for court to appoint someone with whom said elevator company can deposit the storage tickets, and the court appoints the clerk of said court, and an action is brought to foreclose a lien claimed for threshing the grain, in which action the elevator company and all parties claiming an interest are made defendants, and the grain as shown by the sworn statement is more than enough to pay the thresher's lien, and the elevator company deposits tickets for a less amount than as stated in the sworn statement and not sufficient to pay the thresher's lien, the obtaining of a judgment in foreclosure and the sale and application of the proceeds of the grain upon the thresher's lien does not prevent plaintiff from proceeding against the elevator company for conversion of other grain covered by said lien. Appeal from order and judgment dismissing action in District Court, Stutsman County, Hon. J. A. Coffey, Judge. Reversed and Remanded. Opinion of the Court by Burke, J. J. S. Carr of Jamestown, N. D., attorney for appellant. Combs & Ritchie of Jamestown, N. D., attorneys for respondent. From Foster County. L. R. Baird, (Substituted for C. W. Reimers) Receiver of the Security State Bank of Brantford, a corporation, Plaintiff and Respondent, vs. National Surety Company of New York, a corporation, and Nels E. Ostrem, Defendants and Appellants. Same Plaintiff and Respondent vs. National Surety Company of New New York, a corporation, and Dewey Bernhard Miller, Defendants and Appellants. (Companion cases.) Syllabus: 1. In an action at law, to recover on a surety bond, referred by stipulation to a referee to take the testimony, make findings of fact and conclusions of law, and which findings and conclusions were approved by the trial court, it is held that on appeal such action is not triable de novo. 2. Books and records, which, on their face, purport to be the books and records of a bank, and which, upon the closing of the bank, were found in the possession of the president and cashier of the bank by a Deputy State Examiner, who also identified the same as books and records examined by him as a Deputy State Examiner at different times while the bank was open and trans-acting business, are, for reasons stated in the opinion, held to be admissible in an action by the receiver of the bank against the president and cashier, upon their bonds as officers of the bank. 3. Books and records kept by a principal obligor are admissible in evidence as against the surety. 4. The court may, in its discre-