20334. Security State Bank (Faulkton, SD)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
November 15, 1913
Location
Faulkton, South Dakota (45.035, -99.124)

Metadata

Model
gpt-5-mini
Short Digest
d111bb29

Response Measures

None

Description

Bank was taken over by the South Dakota state banking department and suspended in mid-November 1913 due to the death of President A. W. Morse and unsettled estate/stock ownership (and some irregularities). It was reorganized and resumed operations in Jan 1914, but was placed in the hands of the state examiner for liquidation in early April 1914. No bank run is described in the articles; suspension was by state action and later led to liquidation/receivership.

Events (3)

1. November 15, 1913 Suspension
Cause
Government Action
Cause Details
State banking department took charge after death of President A. W. Morse left most stock in his estate with no administrator; banking irregularities discovered.
Newspaper Excerpt
The state banking department this morning took charge of the Security State bank of Faulkton. The bank officials turned over the affairs...The suspension was due to the fact that practically all of the stock of the bank is held by the Morse estate.
Source
newspapers
2. January 23, 1914 Reopening
Newspaper Excerpt
The Security State bank of this city has been reorganized and J. L. Wingfield, of the state banking department, turned the institution over to its new officers yesterday afternoon...The Security State bank reopens under the same name and charter with F. B. Gannon...as president; Alice H. Morse, vice president, and Ottis H. Christian, cashier.
Source
newspapers
3. April 2, 1914 Receivership
Newspaper Excerpt
The Security State bank of Faulkton has been placed in the hands of the state bank examiner for liquidation...the bank went into the hands of the examiner following a conference...and were served papers by Gardner & Churchill...bringing against them three suits by the minor heirs and the widow of A. W. Morse.
Source
newspapers

Newspaper Articles (12)

Article from The Mitchell Capital, November 20, 1913

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Article Text

FAULKTON BANK IS TAKEN OVER DEPARTMENT OF BANKING IN CHARGE PENDING APPOINT. MENT OF ADMINISTRATOR FOR LATE PRESIDENT. Pierre, S. D.-The state banking department this morning took charge of the Security State bank of Faulkton. The bank officials turned over the affairs, with Deputy V. H. Masters in charge. The bank had a 30 per cent reserve on hand and the cause of the suspension is the fact that practically all the stock of the bank was held by the Morse estate and that no administrator has been appointed for that estate since the death of Morse, president of the bank. Bank irregularities were discovered and while the bank had a reserve larger than normal, it was turned over to the department for te protection of all parties at interest.


Article from The Miller Press, November 20, 1913

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Faulkton Bank Closed Pierre, Nov. 14.-The state bank ing department this morning took charge of the Security State bank of Faulkton. The bank officials turned over the affairs with Deputy V. H. Masters in charge. The bank had a 30 per cent reserve on hand and the cause of the suspension is due to the fact that practically all the stock of the bank was held by the Morse estate, and that no administrator has been appointed for that estate. Since the death of A. W. Morse president of the bank, banking irregularities were discovered and while the bank had a reserve larger than normal it was turned over to the department for the protection of all parties at interest.


Article from Pierre Weekly Free Press, November 20, 1913

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Article Text

FAULKTON BANK IS CLOSED BY STATE EXAMINER The State Banking Department Finds an Estate Has Most of Stock. Pierre, S. D., Nov. 15.-The state banking department has taken charge of the Security State Bank of Faulkton, which was turned over to the department by the bank's officers. v. H. Masters, deputy bank examiner, is in charge. When the bank closed a 30 per cent revenue was drawn. The suspension was due to the fact that practically all of the stock of the bank is held by the Morse estate. No administrator has ever been appointed to settle that estate since the death of Morse, who was president of the bank. The state department has taken it in charge to protect the interests of all concerned.


Article from The Tabor Independent, November 20, 1913

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Article Text

FAULKTON BANK IS CLOSED BY STATE EXAMINER The State Banking Department Finds an Estate Has Most of Stock. Pierre, S. D., Nov. 15.-The state banking department has taken charge of the Security State Bank of Faulkton, which was turned over to the department by the bank's officers. V. H. Masters, deputy bank examiner, is in charge. When the bank closed a 30 per cent revenue was drawn. The suspension was due to the fact that practically all of the stock of the bank is held by the Morse estate. No administrator has ever been appointed to settle that estate since the death of Morse, who was president of the bank. The state department has taken it in charge to protect the interests of all concerned.


Article from The Madison Daily Leader, January 26, 1914

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STATE BANK At Faulkton Re-organized and Business Resumed. Faulkton, Jan. 26.-The Security State bank of this city has been reorganized and J. L. Wingfield, of the state banking department, turned the institution over to its new officers yesterday afternoon. This bank has always been a Morse bank, A. W. Morse owning practically all the stock at the time of his death. He was its first ard only president up to this time. The death of Mr. Morse left but two directors, one of these being Mrs. Moise, the balance of the stock being in the estate. The bank, therefore, could not legally continue in business until an administrator had been ap pointed by the court and vested with authority to sell part of the capital stock owned by the estate to adult persons qualified to be directors and stockholders in a banking corporation. All this has involved legal red tape and much time, This is the reason the business has been suspended for 80 long a time. The Security State bank reopens under the same name and charter with F. B. Gannon, president of the First National bank of Aberdeen, as president; Alice H. Morse, vice president, and Ottis H. Christian, cashier.


Article from The Citizen-Republican, January 29, 1914

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TECHNICAL SITUATION KEPT BANK SUSPENDED Faulkton, S. D., Jan. 23.-The Security State bank of this city has been reorganized and J. L. Wingfield, of the state banking department, turned the institution over to its new officers yesterday afternoon. This bank has always been a Morse bank, A. W. Morse owning practically all the stock at the time of his death. He was its first only president up to this time. The death of Mr. Morse left but two directors, one of these being Mrs. Morse, the balance of the stock being in the estate. The bank, therefore, could not legally continue in business until an administrator had been appointed by the court and vestel with authority to sell part of the capital stock owned by the estate to adult persons qualified to be directors and stockholders in a banking corporation. This is the reason the business has been spspended for so long a time. The Security State bank reopens under the same name and charter with F. B. Gannon, president of the First National bank of Aberdeen, as president: Alice H. Morse, vice president, and Otis H. Christian, cashier.


Article from The Tabor Independent, January 29, 1914

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TECHNICAL SITUATION KEPT BANK SUSPENDED Faulkton, S. D., Jan. 23.-The Seeurity State bank of this city has been reorganized and J. L. Wingfield, of the state banking department, turned the institution over to its new officers yesterday afternoon. This bank has always been a Morse bank, A. W. Morse owning practically all the stock at the time of his death. He was its first only president up to this time. The death of Mr. Morse left but two directors, one of these being Mrs. Morse, the balance of the stock being in the estate. The bank, therefore, could not legally continue in business until an administrator had been appointed by the court and vestel with authority to sell part of the capital stock owned by the estate to adult persons qualified to be directors and stockholders in a banking corporation. This is the reason the business. has been spspended for so long a time. The Security State bank reopens under the same name and charter with F. B. Gannon, president of the First National bank of Aberdeen, as president: Alice H. Morse, vice president, and Otts H. Christian, eashier.


Article from Pierre Weekly Free Press, January 29, 1914

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Article Text

TECHNICAL SITUATION KEPT BANK SUSPENDED Faulkton, S. D., Jan. 23.-The Security State bank of this city has been reorganized and J. L. Wingfield, of the state banking department, turned the institution over to its new officers yesterday afternoon. This bank has always been a Morse bank, A. W. Morse owning practically all the stock at the time of his death. He was its first only president up to this time. The death of Mr. Morse left but two directors, one of these being Mrs. Morse, the balance of the stock being in the estate. The bank, therefore, could not legally continue in business until an administrator had been appointed by the court and vestel with authority to sell part of the capital stock owned by the estate to adult persons qualified to be directors and stockholders in a banking corporation. This is the reason the business has been spspended for so long a time. The Security State bank reopens under the same name and charter with F. B. Gannon, president of the First National bank of Aberdeen, as president: Alice H. Morse, vice president, and Otis H. Christian, cashier.


Article from The Mitchell Capital, March 26, 1914

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BANK CLOSED DURING PROBATE SETTLEMENT Aberdeen, S. D.-The Security State bank of Faulkton, which suspended upon the death of the late W. Morse, its president, a few months ago, but recently resumed op-


Article from The Madison Daily Leader, April 2, 1914

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BANK CLOSES THE SECURITY STATE BANK OF FAULKTON IN HANDS OF EXAMINER Pierre, April 2.-The security State bank of Faulkton has been placed in the hands of the state bank examiner for liquidation. This bank suspended upon the death of A. W. Morse, its president, in October, 1913, but recently resumed operation, Aberdeen capitalists holding a large share of the stock. The bank went into the hands of the examiner following a conference between Mrs. Morse, widow of the late president, and F. B. Gannon, of Aberdeen, president of the reorganized bank, and O. H. Christian, cashier. Before they left the city, Messrs. Gannon and Christian were served papers by Gardner & Churchhill, of Huron, represening Mrs. Morse, bringing against them three suits by the minor heirs and the widow of A. W. Morse, the first for damages for closing the bank, the second for alleged fraud, and the third for conversion of the assets of the bank. According to the claims of Mrs. Morse, the sale of the estate to the Gannon interests was never approved by the county court, and she further claims that the Gannon interests had improperly classified the assets and liabilities, having classed items as liabilities which were assets. An effort was made to adjust these claims at the meeting here, the result being no agreement, and, according to Mrs. Morse's statement, the Gannon interests have forced the bank into the hands of the examiner for liquidation.


Article from Pierre Weekly Free Press, April 2, 1914

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THREE SUITS FOLLOW CLOSING OF STATE BANK Huron, S. D., March 25.-The Security State bank, of Faulkton, has just been closed and is in the hands of the state bank examiner for liquidation. This bank suspended upon the death of A. W. Morse, its president, in October, 1913, but recently resumed operation, Aberdeen capitalists holding a large share of the stock. The bank went into the hands of the examiner following a conference in Huron between Mrs. Morse, widow of the late president, and F. B. Gannon, of Aberdeen, president of the reorganized bank, and O. H. Christian, cashier. Before they left the city, Messrs. Gannon and Christian were served papers by Gardner & Churchill, of Huron, representing Mrs. Morse, bringing against them three suits by the minor heirs and the widow of A. W. Morse, the first for damages for closing the bank, the second for alleged fraud, and the third for conversion of the assets of the bank. According to the claims of Mrs. Morse, the sale of the estate to the Gannon interests was never approved by the county court, and she further claimed that the Gannon interests had improperly classified the assets and liabilities, having classed items as liabilities which were assets. An effort was made to adjust these claims at the meeting here, the result being no agreement and according to Mrs. Morse's statement, the Gannon interests have forced the bank into the hands of the examiner for liquidation.


Article from Pierre Weekly Free Press, May 21, 1914

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DAKOTA STATE NEWS MITCHELL-The South Dakota Funeral directors' association will meet in Mitchell on May 26, 27 and 28. President W. H. Wilson, of Aberdeen, will call the association to order on Tuesday morning, May 26 Mayor A. E Hitchcock will welcome the undertakers to the city, and W. F. Lumbard, of Chamberlain, will respond. W H. Broadbent. of Mitchell, is the secretary and treasurer of the association. IROQUOIS-Consolidation of the two telephone systems in Iroquois is anticipated as the result of the conference here between W G Bickelhaupt, secretary of the Dakota Central Telephone company; H. E. Vollmer, district manager, with Thomas Tyrell and T J. Murphy, president and secretary of the Farmers' exchange. LEAD-Recognition of the First National bank of this city, the largest national bank in the state, was accorded through the appointment of its cashier, R. H. Dris. coll, on the organization committee for the federal reserve bank system for district No. 9. which takes in this state and has its headquarters in Minneapolis Mr. Driscoll accepted the appointment and left at once for Minneapolis for a meeting of the committee. He is the only representative from this state. YANKTON INDIAN AGENCY-E Benjamin, who for some time has been in charge of agricultural affairs on this reservation, his duties being to instruct Indians in crop raising, has tendered his resignation, having accepted a similar position in Montana. Homer Red Lightning, an educated Yankton Sioux, who is as good a farmer as most white farmers, has been appointed temporarily to fill the vacancy caused by the retirement of Mr. Benjamin BRIDGEWATER The Bridgewater high school will graduate a class of seven this year, as follows. Dettmer Divine, Harry Bernard Garry, Elsie Margaret Gullander, Clara Emma Mayer, Carl Muench, Ray Eilet Rasmussen, Frederic William Weber. Sunday, May 17, Dr. A. C. McCauley, will preach the baccalaureate sermon: Tuesday evening, May 19, the class day program will be given, and on Wednesday evening, May 20, the graduation exercises will be held at the opera house. IROQUOIS-Albert A. Kaye, of Scotland, S. D., has been elected principal of the Iroquois schools for the coming year. Miss Eva H. Stephenson, of Denver, Colo., was chosen assistant principal. The other teachers will be Miss Laura Emery, of Brodhead, Wis.: Grace Gilliland, of Mitchell, S. D., and Miss Ida L. Binger, of Tulare, S. D., and Miss Hazel Bretz, of Warren, III. BROOKINGS-For the past year or two there has been considerable illegal seining in Lake Campbell, at the south edge of Brookings county, and the local authorities succeeded in apprehending a couple of the offenders this week and are after others. Louis Sundet and Gerhard Sterud were arrested and fined $50 each, both pleading guilty of seining without authority PIERRE-There is a standing complaint that apples raised in the Black Hills section of this state cannot be brought to markets east of the Missouri river on account of the freight rates, which are less from Iowa and Missouri points than they are from the Black Hills. The state railway commission has called a hearing at Belle Fourche on June 24. BELLE FOURCHE-Camp Crook and the section it serves has started a vigorous protest against the proposed move of the postoffice department to abandon the star mail route between this city and Camp Crook and putting on a three times a week service between Harding and Camp Crook in its place. DEADWOOD-Mayor N. E. Franklin and the new city council took office here before a large number of citizens in the council chamber. The mayor announced the following appointments: City auditor. K. W. Trimble: attorney, N. T. Mason; engineer, F. S. Pecis physician, Dr. F. S. Howe: chief of police, E. McGinley policeman, Sherman Reese. WINFRED-At a meeting of the new town board a 20-year franchise was granted to the Howard Electric Light company to extend a line to this town. All farmers along the line will connect for light and power. Canova has had the service for the past two years. The towns of Villas, Roswell, Fedora and Artesian are considering a like proposition. FAULKTON-Public Examiner J. L Wingfield, of the state banking department, has filed with the clerk of the circuit court of Faulk county a complete inventory of the assets of the Security State bank. which was turned over to the department on March 21 of the present year, showing assets aggregating $82,305. GROTON-The Epworth league has elected the following officers for the coming year: President, T. E. Gage: vice presidents, R. E. Eyestone, Gale Peppers, Roy Steele, Ed Johnson; secretary, J. J. Warkentin: treasurer, Miss Wood; organist, Hazel Mueller; reporter, Ruth Clawson. CORSICA Children playing with matches set fire to the home of Mr. and Mrs. H. J. Van der Linden and for a time it was feared it would be totally destroyed. A great deal of damage was done to the furnishings before the flames were extinguished. TYNDALL-The Masons and Odd Fellows of Tyndall opened their new joint lodge building with a joint banquet. Two hundred plates were spread. Masons and Odd Fellows were present from Yankton, Springfield, Scotland, Avon and Wagner. WINFRED -Charles Singer, of this city, has recently perfected and patented a folding storm window. By means of this window the storm sash can be either folded or divided into halves, making it more easily handled without chances of breaking. IROQUOIS-Heart failure is supposed to have caused the death of August Dubro, a poneer resident of Kingsbury county, who was found dead in his bed. He had not been very well for a time, but his condition was not regarded as serious. PIERRE-In the late teachers' examination for second, third and primary grades in this state there were 1,764 applicants, and of these 530 were given second grade certificates, 324 third grades and six primary grades, with 904 left on the standing sheets. GETTYSBURG-The quest for oil in Potter county has not been abandoned by the Fox Oil company. according to