Gilman, Son & Company (New York, NY)

Episode Information

Episode UID
1051071234
Episode Type
Suspension → Closure
Bank Type
private
Bank ID
105107 routing
Routing Number
1-0510
Start Date
October 16, 1902
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
ec8dea9d9fd28003

Response Measures

None

Description

Immediate trigger was checks refused by Western National; firm made assignment next day.

Events (2)
1. October 16, 1902 Suspension
Cause
Correspondent
Cause Details
Checks drawn on the firm's account were refused by Western National Bank amid a tightening money market, precipitating suspension.
Newspaper Excerpt
the Western National Bank threw out checks of Gilman Son & Co., bankers at 62 Cedar street, and the suspension of the firm was announced
Source
newspapers
2. October 17, 1902 Receivership
Newspaper Excerpt
Gilman, Son & Co., bankers and brokers, whose failure was announced late yesterday, assigned today for the benefit of creditors.
Source
newspapers

Newspaper Articles (14)
1. October 17, 1902 The Sun New York, NY
Article from The Sun, October 17, 1902

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Article Text

GILMAN SON & co. SUSPEND. Private Bankers with Many Correspondents, Chiefly In Iowa. Fifteen minutes before the close of banking hours yesterday the Western National Bank threw out checks of Gilman Son & Co., bankers at 62 Cedar street, and the suspension of the firm was announced Its liabilities are said to be possibly $200,000. Representatives of a number of banks to whom checks marked "N. G." had been returned by the Western National went to the office of the firm and demanded back the drafts that they had left with the firm. It is understood that they got them back. The firm was established in 1860 by tire late Winthrop S. Gilman, and its present members are Theodore Gilman. author of a number of financial essays, and Winthrop S. Gilman, sons of the founder. who was originally a wholesale grocer in St. Louis and Illinois. The firm was correspondent for some sixty State and private banks, mostly in Iowa. It made a specialty of the purchase and sale of mortgages. In October, 1873, the firm suspended. but it resumed business within a few months. Bainbridge Colby, counsel for the firm. made the following statement: This firm finds itself late this afternoon in what appears to be an embarraesed condition. An examination of its situation is now in progress. What conclusion will be reached as a result of that examination is something that cannot now be stated "Will the firm be able to continue in business?" was asked. "It is too early to make any conjecture as to that." Valentine P. Snyder. president of the Western National Bank, said: "We returned their checks as no good to-day, because they had no money to meet them. I think when it is straightened out it will be a comparatively small thing."

2. October 17, 1902 Rock Island Argus Rock Island, IL
Article from Rock Island Argus, October 17, 1902

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Article Text

NEW YORK BANKING FIRM ASSIGNS FOR CREDITORS New York, Oct. 17.--Gilman, Son & Co., bankers and brokers, whose failure was announced late yesterday. assigned today for the benefit of creditors.

3. October 17, 1902 New-York Tribune New York, NY
Article from New-York Tribune, October 17, 1902

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Article Text

OLD FIRM EMBARRASSED GILMAN, SON & CO., PRIVATE BANKERS, UNABLE TO HONOR THEIR CHECKS. The old firm of Gilman, Son & Co., private bankers, at No. 63 Cedar-st. has become financially embarrassed. it was learned late yesterday afternoon. The trouble was precipitated. it is understood, by the recent severe stringency of the money market. and the erisis came just before the close of business yesterday, when the firm found itself unable to honor its checks. It was a customer of the Western National Bank, an officer of which said yesterday afternoon We returned their checks to-day as "no good" because they had no money to meet them. I think when it is straightened out It will be a small thing. Neither member of the firm could be seen, but Bainbridge Colby, of Alexander & Colby, No. 120 Broadway, their counsel, was found at the banking house, and said in answer to questions: The firm of Gilman, Son & Co. has suspended payment this afternoon. An examination of its situation is now in progress. What conclusion will be reached is something that cannot now be stated. It is understood that the liabilities will not exceed $200,000. No estimate of the assets could be obtained. The firm has no Exchange connections. and its suspension will in all probability not involve any other local house. It is the New-York correspondent of about sixty State and private banks mainly Iowa institutions, and its specialty has been the purchase and sale of Western farm mortgages. The firm of Gilman, Son & Co. was established in 1860 by Winthrop S. Gilman, who invested in his business a comfortable fortune which he had accumulated as a wholesale grocer in St. Louis and at A.ton. III. Mr. Gilman S first partner was his son Arthur, who retired in 1865, his place being taken by his brother Theodore. The latter and another brother. Winthrop S. Gilman, at present constitute the firm. Gliman, Son & Co. suspended payment on October 16. 1873, in the pante year, and received a year's extension, but paid off all obligations and resumed business within a few months. The elder Gilman died in 1884. the year of the Grand & Ward failure, at which time the resources of Gilman. Son & Co. were tied up for a period. In the last ten years. it is said, the firm has been doing a gradually lessening business, and its name was scareely heard in Wall Street, although It maintained a balance of between $100.000 and $200.000 in the bank, with which it deposited Its funds. The news that the firm's checks had been thrown out caused considerable surprise in the Street. "I hadn't heard of the firm for years," said a prominent Stock Exchange broker. when told of the condition of the firm, and I didn't know that it was still in existence. It is a very old house. Its embarrassment will not affect the Street in the least." Gilman, Son & Co., It was said by some persons familiar with the firm's business. were bankers of the old school The firm. it is said, recently withdrew its deposit from one of the Wall Street banks because the bank would not make a loan on some securities deemed undestrable, with the standing of the house as a guarantee. Theodore Gilman, the senfor member of the firm, is the author of several essays on financial subjects, on which he is an authority. Des Moines, Iowa. Oct. 16.-D. F. Witter. a director of the Iowa Loan and Trust Company and formerly its president, who is connected with other financial institutions dealing largely in farm mortgages, in speaking of the failure of Gilman, Son & Co., said to-night "I am somewhat familiar with the business of the firm. It has no Des Moines connections which can be affected. and I do not think any Iowa interests will suffer."

4. October 17, 1902 The Evening Times Washington, DC
Article from The Evening Times, October 17, 1902

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Article Text

PAYMENT SUSPENDED BY OLD BANKING FIRM Gilman, Son & Co. Makes an Assignment NEW YORK, Oct. 17.-Gilman. Son & Co., one of the oldest private banking concerns in New York, followed the suspension of payment they made yesterday afternoon with an assignment this morning to Bainbridge Colby. The liabilities are reported to be about $250,000, although no schedule has been made public. Fifteen minutes might have saved the Gilman concern yesterday. The suspension of payment was due primarily to the fact that the company's checks were thrown out by the Western National Bank where the Gilmans had an account. Fifteen minutes before the close of business the checks were protested and Gilman suspended payment. The Gilman banking concern, with offices at 62 Cedar Street, was founded by Winthrop S. Gilman in Wall Street in 1860. He had formerly been in business in St. Louis and Alton, Ills. The GIImans at once became prominent in banking circles here and Winthrop Gilman was considered one of the powers on the Street and an exceedingly shrewd financier. In the panic of 1873, the firm was foreed to suspend, but the creditors granted a year's extension and Gilman paid everything in full. In 1884 the failure of Grant, Ward & Co. again entangled the Gilmans, who had large credits in the West. The firm weathered the storm, however. The elder Gilman died that year. and Theodore and Winthrop, jr., have since conducted the concern. Gilman, Son & Co. was New York correspondent for many Western houses, although its business in this line had fallen off recently. The assignee, Mr. Colby, is attorney for the concern.

5. October 17, 1902 The Indianapolis Journal Indianapolis, IN
Article from The Indianapolis Journal, October 17, 1902

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Article Text

BANKING FIRM FAILS. Gilman, Son & Co., of New York, Forced to Suspend Business. NEW YORK, Oct. 16.-Failure of the banking house of Gilman, Son & Co., at No. 62 Cedar street, this city, was announced late to-day. The liabilities, it was said, are less than $200,000, and it was added that no other New York concern would be affected. The business of Gilman, Son & Co. was largely in Western farm mortgages. The house was founded in 1860 by Whithrop S. Gilman, who came here from St. Louis and Alton, Ill. W. S. Gilman died in 1884 and the business was taken up by his sons, Theodore and Winthrop Gilman, jr. The firm is the New York correspondent of some sixty Western state banks and private banking institutions, mostly in Iowa. For some time the bank has done little business in this city. It was said the bank's trouble was not due to any unfortunate speculations. None of the members of the firm could be seen to-day. All inquiries were referred to Mr. Bainbridge Colby, of the law firm of Alexander & Colby, who was called in for a consultation. "The firm appears to be at present, in a somewhat embarrassed position," said Mr. Colby, when seen at the bank. "I have just been called in consultation and I have nothing to say just at present. Later, if I can, I will be glad to give the details." DES MOINES, Ia., Oct. 16.-D. F. Witter, director of the Coma Loan and Trust Company, and formerly its president, who is connected with other financial institutions dealing largely in farm mortgages, in speaking of the failure of Gilman, Son & Co., said to-night: "I am somewhat familiar with the business of the firm. It has no Des Moines connections which can be affected, and I do not think any Coma interests will suffer."

6. October 18, 1902 The Sun New York, NY
Article from The Sun, October 18, 1902

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Article Text

GILMAN SON a co. ASSIGN. Liabilities May Be $250,000 - Assets Mostly Western Mortgages. The banking firm of Gilman Son & Co., which suspended business on Thursday after its checks had been refused by the Western National Bank, made an assignment yesterday to Bainbridge Colby of Alexander & Colby, the firm's counsel. Mr. Colby spent most of the day at the firm's offices in Cedar street investigating its affairs. He said in the afternoon that he would probably make a statement to-day. "The liabilities. as I have found to-day," said Mr. Colby, "will be in excess of $200,000, the amount I put them at yesterday. Just how much I am not prepared to say to-day. The failure was caused by the stringency in the money market and the depreciation of some of the securities held by the firm. That is all I can say now. No statement could be obtained from Theodore Gilman or Winthrop S. Gilman. the two members of the firm. It was believed in Wall Street that the liabilities would reach $250,000. Most of the firm's securities are said to be Western mort gages.

7. October 18, 1902 Bryan Morning Eagle Bryan, TX
Article from Bryan Morning Eagle, October 18, 1902

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Article Text

Make an Assignment New York, Oct. 17.-Theodore GIIman and Anthony Gilman, composing the firm of Gilman, Son & Co., bankers and brokers of this city, whose failure was announced Thursday afternoon, have assigned for the benefit of creditors to Bainbridge Colby.

8. October 18, 1902 Americus Times-Recorder Americus, GA
Article from Americus Times-Recorder, October 18, 1902

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Article Text

Gilman, Son & Co. Assign. New York, Oct. 17.-Theodore Gilman and Winthrop Gilman, composing the firm of Gilman, Son & Co., bankers and brokers of this city, whose failure was announced yesterday afternoon, today assigned for the benefit of creditons to Bainbridge Colby.

9. October 18, 1902 New-York Tribune New York, NY
Article from New-York Tribune, October 18, 1902

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ASSIGNMENT TO B. COLBY. ACTION OF GILMAN, SON & CO.-LIABILITIES ESTIMATED AT $230,000 AND ASSETS AT MORE THAN $200,000. The banking house of Gilman, Son & Co., at No. 62 Cedar-st. which suspended on Thursday afternoon, when the Western National Bank refused to honor checks drawn by the house. made an assignment yesterday to Bainbridge Colby for the benefit of its creditors. Mr. Colby is a member of the law firm of Alexander & Colby, at No 120 Broadway, counsel for the bankers. He was at the banking house yesterday, but said he was not ready to make any statement of the assets and liabilities. It was believed in Wall Street that the liabilities of the banking house would not exceed $250,000 and that Its assets would amount to more than $200,000. Notices were posted on the doors of the banking house yesterday directing presentation of drafts on the bank by Noyes Brothers & Cutler, by the Husbey State Bank, of Muscatine, Iowa: by the First National Bank of Winfield, Kan., and by the State Bank of Douglas, Kan., to be made at the Chase National Bank, and the presentation of checks by the National Bank of Neenah, Wis., to be made at the National City Bank.

10. October 18, 1902 The Montgomery Advertiser Montgomery, AL
Article from The Montgomery Advertiser, October 18, 1902

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Article Text

Assignment of Bankers. New York, Oct. 17.-Theo Gilman and Anthrop Gilman, composing the firm of Gilman, Son & Co , bankers and brokers of this city, whose failure was announced yesterday afternoon, today assigned for the benefit of creditors to Bainbridge Colby.

11. October 18, 1902 The Salt Lake Herald Salt Lake City, UT
Article from The Salt Lake Herald, October 18, 1902

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THE GILMANS ASSIGN. New York. Oct. 17.-Theodore Gilman and Winthrop S. Gilman, composing the firm of Gilman, Son & Co., bankers and brokers, whose failure was announced yesterday, today assigned for the benefit of creditors to Bainbridge Colby.

12. October 19, 1902 The Brunswick News Brunswick, GA
Article from The Brunswick News, October 19, 1902

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Gilman, Son & Co. Assign. New York, Oct. 18.-Theodore GII. man and Winthrop Gilman, composing the firm of Gilman, Son & Co., bankers and brokers of this city, whose failure was announced yesterday afternoon, today assigned for the benefit of cred. itors to Bainbridge Colby.

13. October 23, 1902 Missouri Valley Times Missouri Valley, IA
Article from Missouri Valley Times, October 23, 1902

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IOWA BANKS ON EASY STREET. Bank Examiner Wheian Says Stringency is Past. Des Moines, Ia.. Oct. 23.-State Bank Examiner Joe Whelan has returned to Des Moines after a short trip over the state in pursuance of the duties of his office. He reports the money stringency to be practically over, and that the Iowa banks are now on "Eas street." About two weeks ago many of the Iowa banks were beginning to feel the closeness of the money market in New York city. They had loaned out all of their surplus funds up to the very limit and, feeling that a crash was coming, were closing up on all of the money that came in and were refusing to make loans. Although the situation did not continue critical long enough to alarm the depositors and cause any runs, any number of Iowa banks would have been in a poor position to have withstood demands of their depositors for funds. Now that Wall street has been supplied with money by Secretary Shaw, the Iowa banks are breathlag easier and everything is getting back into its normal position. The failure of the banking firm of Gilman, Son & Co. of New York city, announced through the dispatches, caught a number of Iowa banks, according to Mr. Whelan. He does not anticipate that any of the banks had large deposits in New York city and that any failures will result in Iowa.

14. October 25, 1902 The L'anse Sentinel L'anse, MI
Article from The L'anse Sentinel, October 25, 1902

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BANK FAILS. New York Concern Suspends Business-Liabilities Are Less Than $200,000. New York, Oct. 17.-Failure of the banking house of Gilman Son & Co., of 62 Cedar street, this city, was announced late Thursday. The liabilities, it was said, are less than $200,000, and it was added that no other ,New York concern would be affected. The business of Gilman Son & Co. was largely in western farm mortgages. The house was founded in 1860 by Winthrop S. Gilman, who came here from St. Louis and Alton, III.