18427. Gilbert Bros. (Salem, OR)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
April 22, 1901
Location
Salem, Oregon (44.943, -123.035)

Metadata

Model
gpt-5-mini
Short Digest
c7c61d94

Response Measures

None

Description

Gilbert Bros., a Salem banking firm, was placed in the hands of a temporary receiver (appointed April 25, 1901) and later adjudicated into involuntary bankruptcy (July 18, 1901). There is mention of small early withdrawals after a suit (Apr 22, 1901) but no article describes a depositor run; the sequence is a suspension followed by permanent closure/bankruptcy and receivership.

Events (4)
1. April 22, 1901 Other
Newspaper Excerpt
the announcement that it had been instituted caused much surprise and some excitement locally. Becoming apprised of the fact, a few depositors withdrew their accounts, but otherwise there have been no sensational developments. It will in no way interfere with the operation of our banking institution.
Source
newspapers
2. April 25, 1901 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Litigation demanding accounting of large estate and allegations of missing/ worthless securities led to loss of confidence and appointment of a temporary receiver.
Newspaper Excerpt
H. B. Theilsen ... was appointed on April 25, of this city, temporary receiver of the bank of Gilbert Bros.,
Source
newspapers
3. July 18, 1901 Receivership
Newspaper Excerpt
PORTLAND, July 18.-Judge Bellinger made an order of adjudication in the case of Gilbert Brothers, bankers of Salem, which will result in throwing them into involuntary bankruptcy.
Source
newspapers
4. July 1, 1902 Other
Newspaper Excerpt
The total amount of claims presented ... amount to $106,852.98. The amount of cash in my hands July 1, 1902, was $10,111.30. CLAUD GATCH, Receiver.
Source
newspapers

Newspaper Articles (7)
1. April 22, 1901 The Daily Journal Salem, OR
Article from The Daily Journal, April 22, 1901

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Article Text

SUED FOR ACCOUNTING Gilbert Bros. Bank Asked for a Show Down. Wm. Cospers Heirs Make the Demand And Want an Accounting of $350,000 and a Receivership. At 3 o'clock Saturday afternoon in the United States circuit court in Portland. Mrs. Emma Johnson, of Moscow, Idaho, & daughter of the late Wm. Cosper, filed & suit against Tilmon Ford, administrator of her deceased father's estate, A. Γ. Gilbert and F. N. Gilbert, the Salem Bankers, W. C. Barker et al, demanding an accounting of about $300. 000 belonging to the Cosper estate and asking for the appointment of a receiver to take possession of the property involved. The case has been pending for sev. eral days and the announcement that it had been instituted caused much surprise and some excitement locally. Becoming appraised of the fact, a few depositors withdrew their accounts, but otherwise there have been no sensational developments. Tilmon Ford was absent from the city this morning and [could not be interviewed. A reporter saw A. T. Gilbert of the banking firm of Gilbert Bros., who said: "I have not seen the papers in the case, but understand it is merely an action for an accounting. It will in no way interfere with the operation of our banking institution." The plaintiff, Mrs Johnson, resides in Moscow, Idaho, and is represented by Dolph. Mallary and Gearin, of Portland. and O. T. Richardson of Salem. Mrs. F. C. Perrine, of Salem, is another daughter of the deceased, the other heire being the children of Mrs. J. A. Thomas, deceased, who was a third daughter of Mr. Cosper. The complaint alleges that the estate of the late Wm. Cosper was worth $350,000 and recites that the inventory as returned by the administrator, Tilmon Ford, showed the same to be worth only $48,000. An accounting is demanded for the unaccounted balance. The ceased, Mr. Cosper, was for years a patron of Gilbert Bros., in the banking business, in which institution he was largely interested at the time of his death. The inventory of the estate,as returned by the administrator, contains an item of $47,000 of securities that are worthless.

2. June 13, 1901 The Daily Journal Salem, OR
Article from The Daily Journal, June 13, 1901

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Article Text

Made Before Judge Bellinger of the United States Court TWO PETITIONS PRESENTED THAT SUPPLEMENT EACH OTHER History of Remarkable Case of Bank Suspension and Litigation Over an Estate Variously Estimated at From $48,000 to $350,000-New Proceedings. frey. A second petition of depositors, Salem lawyers interested in the varsetting forth additional facts to show ious suits brought in connection with why a petition in bankruptcy, will be the Gilbert Bros. bank suspension are presented by Attorney Biggler. Attorin Portland today to agree the question neys for Ford, Gatch and Gibert Bros. of the propriety of bankruptcy proceed. will contend there is no cause for bankings before Judge Bellinger, ruptey. On netition asking bankruptcy was

3. July 19, 1901 The Morning Astorian Astoria, OR
Article from The Morning Astorian, July 19, 1901

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Article Text

THROWN INTO BANKRUPTCY. Order of Judge Bellinger in the Case of Gilbert Brothers. PORTLAND, July 18.-Judge Bellinger made an order of adjudiciation in the case of Gilbert Bros., bankers of Salem, which will result in throwing them into involuntary bankruptcy. By this order of Judge Bellinger, it is likely that the receiver will be removed and the property turned over to a trustee to be appointed by the court, which will give all thecreditors an equal share of the money remaining.

4. September 3, 1901 The Daily Journal Salem, OR
Article from The Daily Journal, September 3, 1901

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Article Text

GILBERT BANKRUPTCY CASE Former Receiver Put on the Witness Stand. Witness Testifies That GilS bert Bros. Were Partners e in Piano Business. p u e The taking of testimony in the Gilbert case was continued today before e Referee John Bayne. The questions of k the solvency of Gilbert Bros. were esd pecially set forth. An item brought out e previously regarding the co-partnership of Gilbert Bros. was deemed an impor-tant feature. It was that the letter and bill heads used by the bank until the date of its closing contained the names of both A. T. and F. N. Gilbert. The first witness today was A. W. Prescott, the Oregonian correspondent. On May 25, of the present year, he was conversing with A. T. Gilbert regarding the financial position of the banking firm. He called at the Gilbert residence and asked as to the report of Mr. Thielsen being correct. Mr. Gilbert said the report was correct in all material points, but some minor details were wrong. By the figures of the report and those of Mr. Gilbert, Mr. Prescott figured that the depositors could expect to receive about 75 per cent of their money. The corrections made by Mr. Gilbert were subtracting $3000 from the liabilities and adding $3000 to the resources. This testimony was objected to by Mr. Cake on the ground that F. N. Gilbert o was not present, and by Mr. Brown on r account of it being irrelevant and immaterial to the solvency of A. T. Gilbert. E. T. Hatch of Portland was called. He t is a former resident of Polk county; c was collector of customs in Alaska, and held several other prominent positions. e He was personally acquainted with Gilb bert Bros., knowing them as a business firm in 1887. On January 13, of this r year Mr. Hatch had some conversation with A. T. Gilbert about the advisability c of going into some kind of business in Salem. Mr. Gilbert advised him to try b the music business. saying that they had found that quite profitable. He said, C "Frank and I have bought the Wiley B. a Allen interests in Portland." He also C said that he and Frank Gilbert were d partners. C On cross-examination, Mr. Hatch said that on January 12, 1901, he deposited r $4000 with Gilbert Bros. At the present time there is $3479.95 and the accrued interest due him from the bank. W Regarding the statement that Frank h and A. T. Gilbert had purchased the music business in Portland, Mr. Hatch 0 stated that Mr. Gilbert offered him a W place as manager of the business; then ri gave some items as to the profits of di their music business in Salem. de To conclude the cross-examination, Mr. Cake asked if Mr. Hatch was aware de that the purchase of the Wiley B. Allen to music business of Portland was not made until April. He replied that he 7 was not. o H. B. Theilsen of this city, an insurance agent, who was appointed on April p 25, 1901, temporary receiver of the bank t of Gilbert Bios, was the next witness. After receiving the ort der of the court he began an inventory of the effects and business of the banking house. He was assisted by Hugh P Conoway and Miss Virgie Byrd. so The result of his investigations was shown in his report to the U. S. court at Portland. The material to formulate the report was gathered from the books of the banks, from notes in the bank, from copies of notes in the bank as to collateral, from information from A. T. Gilbert, and from any other reliable source. In his report he gave his estimate of the value of the assets of the bank. also Mr. Gilberts estimate of the same, Mr. Thielsen estimated the value of the real estate belonging to the bank at $10,8.5. This estimate was made from the value placed on the land by Mr. Gilbert and the consideration paid for the title in simple fee. In the afternoon the only witnesses called were Claud Gatch and Miss Virgie Byrd, who testified regarding the time certificates on the bank and points

5. January 29, 1902 The Daily Journal Salem, OR
Article from The Daily Journal, January 29, 1902

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Article Text

GILBERT BROS NOT BANKRUPT United States Judge Bellinger so Holds. In the Petition to Have Them Declared Bankrupts. The deputy clerk of the U. S. Circuit court at Portland this forenoon telephoned counsel for Gilbert Bros. at Salem that Judge Bellinger had handed down his opinion and decided that in the matter of petition for Gilbert Bros., the suspended Salem bankers, they were not shown to be bankrupts and proceed. ings were referred back to the circuit court of Marion county before Judge Boise.

6. July 29, 1902 The Daily Journal Salem, OR
Article from The Daily Journal, July 29, 1902

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Article Text

(Continued from first page.) ttion of the date set by your honor for the presentations of claims, I will recommend that they be received, and treated as are the other claims of like nature. In reference to the interest-bearing certificates of deposit nearly all of the parties presenting claims for such are claiming interest upon said certificates upon date of issuance. The certificates vary in length of time, some being only for a few months, others being for one year. With the exception of the variations and corrections mentioned herein, the claims, as presented and reported by me June 9, 1902, agree with the books of Gilbert Bros. The total amount of claims presented, including those after date set for presentation, amount to $106,852.98. This is exclusive of most of the interest upon the interest-bearing certificates of deposit. The amount of cash in my hands July 1, 1902, was $10,111.30, The claims of Laurence and Mac Hofer, Ralph Matthews, Ernest Bean, Marguerite Wilson and E. A. Arrington, herewith. CLAUD GATCH, Receiver. Receiver Gatch was seen by a Journal reporter, and, while he declined to give any statement as to what the bank is liable to pay out, he was inclined to be cheerful about the matter. It is suggested by such as have had reasonable opportunity to learn that the creditors will probably receive somewhere from 50 to 70 per cent. of their claims. The report shows the aggregate claims to be $106,852.96, while the cash on hand is $10,111.30. Of couse there are other assets, and most of the preferred claims have been settled with collateral.

7. April 4, 1905 Daily Capital Journal Salem, OR
Article from Daily Capital Journal, April 4, 1905

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Article Text

When the affairs of Gilbert Bros., the bankrupt bankers, of Salem, were wound up, nearly two years ago, the receiver, Mr. Claud Gatch, turned all the pianos and organs, both new and second-hand, which were a part of the assets of the defunct bank over to the Eilers' Piano House. Every instrument received by us then was sold off by our Portland store at fifty cents on the dollar. Since that sale not a single complaint has been received by us from a purchaser of one of these pianos. The pianos and organs we are now offering in Salem at remarkably low prices are a portion of this same stock, the instruments having been sold by the bankers previous to their assignment. The pianos have from time to time been repossessed by the receiver, since his appointment, owing to the inability of various purchasers to make their payments upon them. We have consented to take the entire lot off the hands of the receiver, and we now propose to convert them into money without any loss of time.