First & Security State Bank (Crosby, ND)

Episode Information

Episode UID
77043171487
Episode Type
Suspension โ†’ Reopening
Bank Type
state
Bank ID
7704317 routing
Routing Number
77-0431
Start Date
November 16, 1923
Location
Crosby, North Dakota (48.914, -103.295)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
f67dfc642b133291

Response Measures

None

Description

Bank suspended late 1923 and reopened under state supervision in 1924; later consolidated/reorganized (1926) per court record.

Events (3)

1. November 16, 1923 Suspension
Cause
Local Shock
Cause Details
Depleted reserve and inability to make collections following local calamity, causing suspension.
Newspaper Excerpt
SECURITY STATE BANK OF CROSBY GOES TO WALL FAILED TO OPEN FOR BUSINESS MONDAY MORNING ... The bank suspended with approximately $175,000.00 in deposits ... suspended operations on Saturday afternoon on account of a depleted reserve fund and inability to make collections.
Source
newspapers
2. September 24, 1924 Reopening
Newspaper Excerpt
TWO BANKS ARE REOPENED Crosby Banks Had Deposits of Over $350,000 ... The two banks - the Security State of Crosby and the First State Bank of Crosby - ... reopened after reorganization. Both closed late in 1923.
Source
newspapers
3. June 11, 1926 Other
Newspaper Excerpt
From Divide County ... First & Security State bank of Crosby, a corporation, et al ... A reorganization plan was worked out whereby the two banks were authorized to consolidate and reopen as one bank ... depositors should agree to leave their money on deposit in the reorganized bank for certain stated periods of time.
Source
newspapers

Newspaper Articles (3)

Article from The Producers News, November 16, 1923

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Article Text

SECURITY STATE BANK OF CROSBY GOES TO WALL FAILED TO OPEN FOR BUSINESS MONDAY MORNING AS FUNDS WERE EXHAUSTEDCALAMITY CAUSE OF WIDESPREAD SUFFERING. The Security State Bank in Crosby failed to open its doors Monday morning, having suspended operations on Saturday afternoon on account of a depleted reserve fund and inability to make collections. The bank suspended with approximately $175,000.00 in deposits and loans and discounts aggregate about $170,000.00, causing widespread suffering. Operations of the bank are now being conducted under the new law passed in the last session of the North Dakota legislature which permits the Guaranty Fund Commission to take charge of its affairs. Mr. J. C. Desmond of Minot, inspector for the Guaranty Fund Commission arrived in Crosby Tuesday to make a compilation of the condition of the bank. The Security State Bank was organized in 1907 and the present officers are as follows: President, J. C. Rouseau; Vice President, R. W. Rousseau, and Cashier, R. L. Roussea. The bank is capitalized at $30,000.00. This financial debacle coming at this time plays havoc with the business men and farmers of Divide county.


Article from The Bismarck Tribune, September 24, 1924

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Article Text

TWO BANKS ARE REOPENED Crosby Banks Had Deposits of Over $350,000 Two banks with combined deposits of $355,500 shortly before they were placed on special trust agreement by the state banking board reopened, according to information received at the office of State Examiner Gilbert Semingson. The two banks-the Security State of Crosby an dthe First State Bank of Crosby-had a combined capital stock of $40,000 at the time of their suspension. Much satisfaction was expressed by the state banking department today over the ability of these two banks to reopen after reorganization. The Security State had a capitalization of $30,000 and deposits of $199,000 while the First State had a capitalization of $10,000 and deposits of $136,500. Both closed late in 1923.


Article from The Bismarck Tribune, June 11, 1926

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Article Text

# SUPREME COURT From Stutsman County John P. Seiler, plaintiff and appellant, vs. A. C. Gelhar et al as district school board of Montpelier school district, Stutsman county, North Dakota, defendants and respondents. Syllabus: Chapter 118, S. L. 1921, relating to consolidated schools, which provides that "transportation may be furnsihed either by the use of public conveyances or by allowing each family as compensation" a sum of money dependent upon the distance to be traveled and the number of children in the family, is not violative of sections 147, 148 and 149 of the state constitution, as depriving children or their guardians of any constitutional rights, merely because the option whether transportation by public conveyance or compensation in lieu thereof shall be furnished, lies in the discretion of the school board or in the judgment of the people, through an election pursuant to subsection 3, chapter 113, supra. Appeal from the district court of Stutsman county, Hon. Fred Jansonius, district judge. Application to the district court for a writ of mandamus. The application was denied and the petition dismissed. Order affirmed. Opinion of the Court by Johnson, J. S. E. Ellsworth, Jamestown, N. D., attorney for plaintiff and appellant, Carr & Rittgers, Jamestown, N. D., attorneys for defendants and respondents. From Ward County Union National Bank of Minot, a corporation, plaintiff and respondent, vs. F. C. Lenton, H. M. Wilson, and E. H. Ray, defendants, F. C. Lenton and E. H. Ray, defendants and appellants. Syllabus: Following Thompson Yards, Inc., v. Richardson N. D. 199 N. W. 863, it is held, under the facts stated in the opinion, that the lien of a crop mortgage survives a discharge in bankruptcy, where such mortgage is executed in the fall, covering the next maturing crop. Appeal from the district court of Ward county, Hon. Jno. C. Lowe, judge. Affirmed. Opinion of the court by Birdzell, J. Halvor L. Halvorson, Minot, N. D., attorneys for appellants. Nestos, Herigstad & Stenersen, and B. H. Bradford, of counsel, Minot, N. D., attorneys for respondent. From Divide County R. W. Frazier, relator and respondent, vs. Carl Schultz et al as county commissioners of Divide county, North Dakota, respondents and appellants. First & Security State bank of Crosby, a corporation, et al, respondents and appellants. Syllabus: Divide county had moneys on deposit in two banks which closed their doors on account of insolvency. A reorganization plan was worked out whereby the two banks were authorized to consolidate and reopen as one bank, subject to certain conditions imposed by the state banking department and the guaranty fund commission, one of which was that all the depositors should agree to leave their money on deposit in the reorganized bank for certain stated periods of time, running from one to four years. The county commissioners, after fair and honest consideration, determined that owing to the then condition of the two insolvent banks, as well as the questionable financial responsibility of the securities on the depository bonds, it would be for the best interests of the county to enter into the proposed arrangement. They thereupon entered into the proposed agreement on the condition, however, that the sureties on the depository bonds become parties thereto. Held that the county commissioners did not exceed their authority in making such agreement.