18430. Gilbert Bros. bank (Salem, OR)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
April 23, 1901
Location
Salem, Oregon (44.943, -123.035)

Metadata

Model
gpt-5-mini
Short Digest
75060096

Response Measures

None

Description

Bank closed/suspended on April 23, 1901 and never resumed operations; temporary and then permanent receivers were appointed. Coverage describes insolvency, removal of securities, and receivership litigation rather than any depositor run.

Events (3)

1. April 23, 1901 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank voluntarily shut its doors and reporting indicates insolvency: books show resources far below liabilities and substantial securities withdrawn prior to suspension.
Newspaper Excerpt
when that establishment suspended business on April 23d last.
Source
newspapers
2. April 25, 1901 Receivership
Newspaper Excerpt
Tuesday April 23, bank closes, and United States Marshal serves papers on Gilbert Bros. ... Thursday April 25 Henry B. Thielsen of Salem named by Judge Bellinger of U. S. Circuit court as temporary receiver.
Source
newspapers
3. May 18, 1901 Receivership
Newspaper Excerpt
Judge R. P. Poise ... has appointed Claud Gatch as receiver ... Mr. Gatch has filed his bond ... the receiver appointed by Judge Bellinger of the Federal Court; that case being now before Judge Bellinger upon the question as to whether or not the Federal Court has jurisdiction ... Claud Gatch receiver of Gilbert Bros.' bank.
Source
newspapers

Newspaper Articles (10)

Article from The Daily Journal, May 11, 1901

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THE PUBLIC SCHOOL SAVINGS DEPOSITORS Two Hundred and Fifty-Five Children Hold Total Accounts of $1116.78 AGAINST THE SUSPENDED BANK OF GILBERT BROTHERS OF THIS CITY Average Deposits of Solid Muldoon Capitalists in Knickerbockers and Short Dresses Was $4.36---Copper Cent Financiers Who Will Suffer. Benjamin Bailey 3 00 The pupils of the Salem public schools Margaret Patrick 4 38 had on deposit) in the school savings Ruth Staley 9 04 bank in Gilbert Bros. bank $1116.78 Nellie Koppe 289 Hazel Enchson, when that establishment suspended 4 57 Mabel Patrick 2 10 business on April 23d last. That amount Ruth Van Patton 90 8 apportioned among the city's schools Lynn Carey 17 follows:


Article from The Daily Journal, May 18, 1901

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Mr. Ford Believes They Had Abundant Assets and That All Will be paid. Judge R. P. Poise, of Department No. 2, of the State Circuit Court for Marion county, has appointed Claud Gatch as receiver in the case of Tilmon Ford, as executor of the last will and testament and estate of William Cosper, deceased, plaintiff, against the Gilbert Bros., and their wives, defendants. Mr. Gatch as receiver, is not, during the pendency in the United States District Court of the suit commenced by Emma Johnson against the Gilbert Brothers, Tilmon Ford, etal., to in any manner molest or disturb the possession of the receiver appointed by Judge Bellinger of the Federal Court; that case being now before Judge Bellinger upon the question as to whether or not the Federal Court has jurisdiction to try the merits of the suit therein pending; but in case Judge Bellinger should decide that the Federal Court is without jurisdiction, and should dismiss the bill of Emma Johnson, then Mr. Gatch is authorized as receiver of the State Circuit Court, to receive all of the property then held by the receiver of the United States District Court, and receipt to him for the same. This appointment is said to have for its object keeping the property in the custody of the law in case Judge Bellinger should sustain the demurrers to the bill in the case before him in the Federal Court. It is understood that Judge Bellinger was consulted, and consented that Judge Boise might appoint a receiver; but if Judge Bellinger should finally decide that the Federal Court has jurisdition, of course the recaivership in Judge Boise's court will be held for naught: but in case the bill is dismissed, Mr. Gatch proceeds as receiver and thus prevent the possibility of attachment suits being commenced, which would incur coste and expenses against the assets of the Gilbert Brothers. Mr. Gatch has filed his bond, with Hon. A. Bush as bondsman, and the undertaking has been approved by Judge Boise. Mr. Gatch is the well-known cashier of the Ladd & Bush bank, and is a capable gentleman in every respect. He has had experience with receivership, having been receiver of the Fred A. Legg drug business a few years ago. There was objection to Mr. Gatch as receiver when the matter was first before Judge Bellinger, but it came from a source that gives promise that the legal adviser employed will not foment litigation. Mr. Thielsen, the temporary receiver was seen and said he would go on with his work of taking inventory until a decision was rendered in the federal court on the question of jurisdiction. M r. Ford, the executor of the Cosper estate when seen said, as his firm had about $4000 deposits in the bank, on individual accounts none of them could act as attorney for the new receiver if he is permitted to take charge. When asked as to his faith in the securities meeting the demands of the creditors, Mr. Ford said he was personally interested in the bank paying out in full. It would depend on good management, he said. With good nursing of the assets, avoidance of piling up costs and expenses, the bank would pay out. Asked as to what would be the chances of the public school savings deposits paying out, he laughed and said that he was in favor of suing the bondsmen for that. Mr. Ford further said that Mr. Slater and McNary and a clerk had made an inventory of the Williams England bank in five days, and the receiver of the Gilbert Bros'. bank would not need to give it his entire time and attention. To Enjoy a Smoke


Article from The Morning Astorian, May 25, 1901

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John A. Montgomery has opened a shop at 421 Bond street and is prepared to do all classes of plumbing and tinning at the lowest possible rates. "Doc" Holmes, proprietor of the Oregon News Company of Portland, was in the city yesterday, the guest of his old college chum. Will Madison Rowlyn coal lasts longer, is cleaner and makes less trouble with stoves and chimney flues than any other. George W. Sanborn, agent: telephone 1311. The Britsh ship Fulwood, with a cargo of wheat for Chill, cleared at the eustom house yesterday with 120,499 bushels of wheat. valued a: $74,717 You may have seen better days but never better bitters than HI-HI: try them. Foard & Stokes Co., distributing agents. The construction work an the new water works system at Fort Stevens will be commenced Monday the material for the work being already on the ground. Pupils wishing to take private lessons during the summer to make up grade work. apply to Miss Fossett. 273 Ninth street. Tiny Hanson, the clever young wo. man who escaped from a deputy sheriff in Portland. has been recaptured at Vancouver and will be returned to the Multnomah county jail, The only real estate transfer filed yesterday was a deed from G. Wingate to J. W. Welch for eleven acres in section 7. township 8, north of range 10. west. The consideration was $600. State Senator George C. Brownell who has been regarded as a possible opponent to Congressman Tongue at the next election. has announced that he will support the present incumbent. Prof. A. J. Collier. formerly occupying the chair of geology in the Willamette University. will nead a party being sent out by the government on an important geological expedition to Alaska. The dismantled hulk of the big steamer Billings. which has been resting on the rocks near Blalocks. floated off during the recent high water and was rescued by parties at Rufus The captors of the drifting ship will receive a neat sum as salvage. The fishing boat of A. Mulerga was capsized yesterday at Fort Stevens. The men had a narrow escape from drowning and but for the prompt assistance of the life-saving crew would undoubtedly have perished. The boat and net were also saved. Heine Hansen the painter had a miraculous escape from serious injury yesterday while working in Uppertown. The scaffolding on which he was standIng broke and he fell a distance of thirty feet to the ground. Beyond a se vere shaking up he sustained no serious injuries. A special meeting of the Push Club has been called for Monday night at which time arrangements for the appointment of a regatta committee will be made. The report of the committee that recently secured the guarantee for a steamer line between Astoria and North Shore points will also be submitted. The O. R. & N. Co. has made a rate of $86 from Astoria and Portland for the Pan-American exposition at Buffa10. Tickets will be on sale first and third Tuesdays, June to October. in. clusive. These tickets must be used for continuous passage going. but stopovers will be allowed within final limit returning. Federal Judge Bellinger has held that the United States court has no jurisdiction in the matter of a receiver for Gilbert Bros. bank at Salem. and Receiver Theilson has retired. An application made in the Marion county circuit court has resulted in Claud Gatch being appointed to handle the affairs of the defunct bank. Mrs. C. W. Fulton received yesterday afternoon at her new home on Seventeenth street. The Columbia orchestra furnished the music and the interior was profusely decorated with cut flowers. Mesdames F. I. Dunbar. of Salem. P. A. Stokes, G. W. Sanborn. G H. George, P. L. Cherry H. F. Prael. G. C. Fulton and J. A. Fulton assisted the hostess in receiving the guests and the Misses Reed. Tallant, Crang Bowlby, Heilborn, Hobson and Bertha Hobson presided at the refreshment tables. . "The building of railroads into the Nehalem valley is based entirely upon the timber tributary, says the Oregon Timberman. "It is estimated. taking the average to be 20,000 feet to the acre. the freight to be earned by railroads building into the Nehalem and Tillamook country, at $1.50 per 1000 feet. carried to Portland in logs or lumber, would be $39,074,000. If these figures are correct. and they are probably fairly accurate, a railroad corporation which overlooks building into the Nehalem would apparently be overlooking a good investment." The work of grading on the route of the Goble. Nehalem & Pacific railroad will be resumed next week. It is the ntention of the company to push construction of their road as rapidly as conditions will justify. When operations were commenced on the road it was exbected that a great deal more in the way of construction would have been accomplished by this time. but the extremely wet weather of the past few months has made it very expensive if not impossible to make and hold a grade the country through which their line


Article from The Daily Journal, May 29, 1901

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LIVELY MEETING OF DEPOSITORS Discuss Resolutions Relating to GIIbert Bank Failure. Committee Appointed to Investigate and Report to Another Meeting. At the meeting of the depositors of Gilbert Bros'. bank held Tuesday an interesting session was held. Nearly 100 people were present, ladies and gentlemen, mostly depositors. The meeting was called to order by N. J. Damon, who stated that the meeting was not exactly a funeral, but rather a meeting to take care of the corpee. W. 1. Staley was unanimously chosen as chairman, and Mr. James Winetanley as secretary. The published call was read, and then the following resolutions were introduced: Whereas, It appears from the report of the temporary receiver in the matter of the suspended Gilbert Bros. bank, of Salem, that valuable securities were removed from the bank within a short time previous to its suspension, and Whereas, If such collateral securities are permitted to be withdrawn from the general assets of the bank it will create a preference in the interest of certain ereditors and deprive all other creditors of the just share they are entitled to receive, and Whereas, The establishment of such 8 precedent would not only work a great injustice to all creditors not 80 preferred and destroy the confidence of the public in all banks in this community and work a lasting injury to business intereste in this city, therefore be it Resolved, That we as creditors protest against such a course being pursued as will legalize the removal of such securi. ties in any manner or create any such preferred class of creditors, and we ask that the petition in bankruptcy be al lowed and a disinterested trustee be named who is acceptable to the creditors in general. A. N, Moores argued that the resolu tions should not be adopted hastily and thought the receiver was treat all alike. He moved that the resolution be referred to a committee of three to Le reported upon by them at a future meet. ing. N. J. Damon moved to amend by having the committe report to this meeting. Dr. Meredith supported the original motion. Mr. Damon stated that Mr. Bush is a heavy holder of securities, and objected Mr. Gatch ae_receiver pointing out that the only way to bring back to the bank was by proceedings in bankruptcy. He siso suggested that no securities should be given out for attorneys fees not yet earned. Mr. Ford then spoke against the amendment. He said that he was act ing in good faith and that the Gilbert Bros. are not insolvent, and he also hought that Mr. Gatch 18 honest and will do justice to all depositors. He also thought Mr. Thielsen had not found all the assets The amendment was withdrawn and another amendment was offered increasing the committee to five, which was accepted. Mr. Bigger stated that with the report of the temporary receiver at ) and it is apparent that the bank is insolvent and also showed that unless the case can be taken into the bankruptcy court no withdraw: securities can be restored. He also showed that the appointment of Mr. Gatch as receiver is the result of a suit of the Cospor heirs, and that such suit must result against the interest of the depositors genrally. He advocated the adoption of the resolution. Mr. Slater asserted that Mr. Bigger was mistaken in his statements, and advised that the depositors employ an attorney to protect their interests. He also stated that he proposed to with draw as Mr. Ford's attorney and appear for himself as against the Cosper heirs. J. N. Brown appeared as an unsecured depositor and attorney of Gilbert Bros. "for the purpose of fighting the Cosper heirs." He also charged that the temporary receiver had not made a correct n appraisment of the assests. He then called for Mr. Cockerlin, & heavy depositor, to speak. That gentleman made a little plea for hormony and hoped the committee would be appointed and given time to report


Article from The Daily Journal, May 29, 1901

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# A DEPOSITOR ASKS QUESTIONS. And Presents a Rather Mixed up View of Affairs, EDITOR JOURNAL:-As a depositor in the Gilbert Bros. bank who was present at the meeting yesterday and heard the discussion of the resolutions, I feel that I am liable to be a pessimist if I can't get some new light on the subject. In the first place the statement was made by Mr. Ford and Mr. Brown that the bank is solvent. Then what are they worrying about? Why did Mr. Brown's law firm have to have security for its fees if the firm is solvent? If the thing is not bankrupt why did Mr. Gilbert himself appraise the assets of the bank about 25 pet cent below their face value? If the bank is solvent why did Mr. Ford sue in behalf of the Cosper heirs? If it is solvent why do the Cosper heirs employ attorneys to secure what they seem to think they can't secure through the executor who is supposed to protect them, and who insists that Gilbert Bros. will pay 100 cents on the dollar? If it is solvent why did the attorney of the bank say in the meeting that he would appear in the court and fight the depositors? Why did the Cosper representatives bring action in the federal court and secure a temporary receiver, and then change their minds and want a receiver out of the circuit court, if there is no bankruptcy? If the bank is solvent why can't all the depositors have collateral security? It certainly seems to me that the bank must be insolvent, or it would not have shut its doors voluntarily, and if this is the case, why shouldn't the depositors meet and at least try to get fair treatment? No one would for a moment suspect the people who have their claims secured of wanting to take advantage of the unsecured depositors, oh, no! But why are they worrying, anyway? The


Article from The Daily Journal, June 13, 1901

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ARGUMENTS MADE FOR BANKRUPTCY Continued from Fourth Page, Two Heirs Oppose Bankruptcy. Two Cosper heirs, Mrs. Emma Johnson, of Moscow, Idaho, and Mrs. Irene Perrine, of Salem, yesterday filed the following statement in the probate court for Marion county: "To Honorable John H. Scott, county and probate judge of Marion county, "Come Oregon: DOW the undersigned, and repectfully show to this Honorable Court as follows. "That they are the heirs at law and legatees and devise H under the last will and testament of William Cosper, deceased, which is now being probated and administered upon in the Probate Court of Marion County, Oregon. "The undersigned are willing that said will shall stand, and that the estate of said decedent may be administered upon according to the terins and pro. visions of said will. "The undersigned are willing that the suit now pending in the circuit court of the state of Oregon for the county of Marion, Department No. 2, in which Tilmon Ford, as execu or of the last will and testament of William Cosper, deceased, is plaintiff, V6 A. T. and F. N. Gilbert and the Gilbert Brothers and their wives. which suit is brought for the purpose of having an accounting with the said Gilbert Brothers and their wives, may be proceeded with; and that Claud Gatch, the receiver appointed therein by the circuit court, may continue to act as the permanent receiver in said suit, until said accounting is complete or until further order of the circuit court. "We further show to this Honorable Court that we areopposed to bankruptcy proceedings, as now commenced in the United States District Courtat Portland, Oregon, believing that the suit now pending in the circuit court of the State of Oregon for Marion county, is the proper and the better method under all the circumstances of obtaining a complete accounting with the Gilbert Brothers and their wives, and that it can be more economically managed through the said circuit court of Marion county, Oregon, than through the Court of Bankruptcy, and that in the end more can be realized for all parties concerned. We therefore oppose bankruptcy proceedings, and do hereby authorize the execntor of our deceased father's will and testament to use his best efforts in our behalf to have said bankruptcy proceeding dismissed, or stayed, if not dismissed until the final accounting in the circuit court of Marion county ,Oregon." History of the Case, In Nov. 1900 Tilmon Ford was, appointed executor of estate of Wm. Cosper with will annexed. Saturday April 20th Mrs. Emma Johnson of Moscow, Idaho, began suit against Tilmon Ford administrator, and the Gilbert Bros. for an accounting to the heirs of the estate of Wm. Cosper, in the sum of $300,000. Pettion alleges estate worth $340,000 while appraisers valued it at $48,000. Tuesday April 23, bank closes, and United States Marshal serves papers on Gilbert Bros. Tilmon Ford executor says estate does not include $15,000 property of Cosper owned in Idaho. Thursday April 25 Henry B. Thielsen of Salem named by Judge Bellinger of U. S. Circuit court as temporary receiver. Thursday, May 8, Tilmon Ford, executor of the Wm. Cosper estate begins suit before Judge Boise in circuit court against Gilbert Bros., alleging conversion of decedent's funds and asking an accounting and receiver. Saturday, May 11, JOURNAL publishes list of 255 school children depositors in Gilbert Bros'. bank. Friday, May 18, Judge Boise names Claud Gatch receiver. Files his bond with A. Bush as bondsman. Thursday, May 23, Mr. Thielsen files his report as receiver, and report shows by Gilbert Bros. books and hisstatement that bank was in solvent. Books of bank show resources of bank $212,353.95. estimated value of same by Gilberts $170,636 89. By Thielsen $164,139.84. Report shows securities withdrawn $95,000. Friday, May 24, Judge Bellinger decides he has no jurisdiction. A.T. Gilbert in interview says he bank to naw 76 cents on dollar.


Article from The Daily Journal, July 29, 1901

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# ADJOURNED SESSION OF CIRCUIT COURT Several Petitions Granted and New Orders Were Filed. The case of E. J. Cornell, plaintiff, versus G. W. Pearmine, defendant, set for hearing in Justice O'Donald's court at nine o'clock this morning, an action to recover damages for the removal of a partition fence, was transferred to the circuit court after a hearing of the pleadings, on the ground that the title of real property was involved. At an adjourned session of depart-ment two of the circuit court Saturday afternoon, in the case of Tilmon Ford, executor, plaintiff, versus A. T. Gilbert et al, defendants, W. T. Livesley & Co. by their attorney, W. T. Slater, filed a petition for an order of the court upon Claud Gatch, receiver of Gilbert Bros. bank, requiring him to credit the account of T. A. Livesley & Co. with Gilbert Bros. with $981.86 as of April 25, 1901 and $298.22 as of April 30, 1901. The petitioners allege that they were in-debted to Gilbert Bros. to a large amount, and that on the dates named drafts were executed to the Branch county Savings bank of Cold Water, Mich., correspondents of Gilbert Bros. on the American Brewing Co., of Pittsburg, Pa., and to the Dubuque Brewing Co., of Dubuque, Iowa, on the same company, and that said drafts were honored and placed to the credit of Gilbert Bros. and that each of said amounts are retained by said Com-pany. The receiver, Claud Gatch, demurred to the petition on the grounds that in-sufficient facts were stated to entitle the petitioner to the relief prayed for. After the arguments of the respective counsels, Judge Boise granted the peti-tion of the plaintiffs. In the same cause, Olive A. Slater, through W. T. Slater, petitioned for an order of the court upon Claud Gatch, re-quiring him to pay out of the funds now in his hands belonging to the said estate the sum of $80, the same having been paid by her agent, W. T. Slater for a draft on the First National Bank of Portland just prior to the closing of Gilbert's bank and payment thereof was refused by said First National Bank. A stipulation of the facts was filed by W. T. Slater and by Claud Gatch. The petition was graned.


Article from The Daily Journal, May 17, 1902

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of Petition First Congregational Church. The First Congregational church, of this city, through its attorney, John Bayne, has petitioned the circuit court that Claud Gatch, as receiver of Gilbert Bros.' bank, be directed to deliver to the petitioner a certain note for the sum of $140.54, which was set aside as collateral to the Adair Sunday School fund to cover a deposit made by the petitioner prior to May 17, 1899, in the sum of $100, with interest at 8 per cent. upon the petitioner paying the difference between the balance due upon said note and the amount of $100, with interest at 8 per cent.


Article from The Daily Journal, November 22, 1902

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TEN PER CENT DIVIDEND Not Yet Paid to the School Children Action Must Be Taken by the School Board Inquiry of the receiver of the Gilbert Bros. bank as to why the Salem publie school children were not receiving their 10 per cent dividends on the amounts in the savings deposits when the bank failed, "elicited the information" that there were no accounts kept at the bank showing what was due each child. The bank only had a total balance due each school. and before any money could be paid over the school board must take some action. and give a receipt for the money, and order the respective principals to disburse the money. Mr. Gatch, the receiver, says that is the only way the business can be promoted as the "lit. tle ones," referred to in the scripture want their change for the holiday time. the school board should expedite the matter.


Article from The Daily Journal, December 27, 1902

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PROPERTY CHANGES OWNERS Active Movement of Marion Real Estate More Help Needed in Recorder's Office The transfer of real estate in this county for the week ending last night approximated $35,000 in considerations. A considerable amount of farm property changes hand weekly, and this is evidence that new people are continually coming into this section and locating. There is also a great deal of city and suburban property that is finding new owners at improved values. By reason of the increased number of instruments of various kinds that are being filed. the work of recording deeds and other documents in the of fice of County Recorder Siegmund is falling behind. With but two deputies, Recorder Siegmund finds it impossible to record the instruments as rapidly as they are being filed in his department. Among the deeds that were recorded this week were the following: Hiram F. Bowman, unmarried. to J. H. Campbell, lots 8 and 9, blk 16. Yew Park Annex to Salem, $250. F. N. Derby, et ux., to Thomas A. Radeliff, out lots 12, 13 and 14, Morningside add, Salem, $3500. J. W. and Emma Ebner, to Mrs. Ella Zollner, 9½ acres, t 6 S, r 1 W. $333. John Outerson, single, to Merrill and Linn H. Parkhurst, 160 acres, t 10 S, r 6 e, $200. Cecelia and P. J. Larsen to Wm. D. Mohney, 3.37 acres, t 7 and 8 S, r 3 W. $475. John Outerson, single, et al., to Merrill and Linn Parkhurst, 160 acres, t 10 S, l' 6 e, $200. John M. Hollingsworth, et ux., to Merrill and Linn Parkhurst, 160 acres, t 10 S, r 6 e; $200. F. U. Hull, et ux., to Frank Herrling. 100 acres, t 9 S, r 2 e, $200. G. P. Terrell, et ux., to Frank Herrling, 100 acres, t 9 S, r 2 e, $100. John W. McKinney, et ux., to Sophie Keene, lots 9 and 10, blk 2, Frickey's add to Salem, $175. H. Meiring, et ux., to Chris A. Jorgensen, lots 5 and 6, block 47, Gervais, $130. Hiram J. Smith, et ux., Joseph Doerfler, 80 acres, t 8 s, Γ 1 W, $2200. H. J. Smith, et ux., to Martin Doerfler, 120 acres, t 8 S, r 1 w, $4100. H. J. Smith, et ux., to John B. Peterson, about 50 acres, t 8 S, r 1 W, $1700. W. F. Slater, et ux., to J. D. Bohannon, lot 4, blk 1, South West add to Salem, $325. Claud Gatch, receiver Gilbert Bros.' bank, to S. A. Manning, land in blk 60, Salem, $175. Zarilda Miller, widow, et al., to Mrs. E. M. Vanderwert, et al., trustee of the W. C. T. U. of Salem, land in block 46 Salem. $2625. John I. Thomas, et ux., to Oscar L. Dencer, about 66 acres, t 8 S, r 3 W, $1900. Charles W. Pugh to Joanna Pugh, interest in estate of Charles Claggett, deceased, $1440. John C. Atkinson, single, to George W. Burch, et al, 160 acres, t 7 S, r 1 e, $1200. Lambert Coppock, et ux., to Ziba K. Ferguson, about 10 acres in Sunnyside Fruit Farm No. 8, $1250. A. C. Iler, et ux., to Fred W. Scheurer, et ux., balance of S % lot 3, blk "1, and n 1/2 lot 2, blk 1, Butteville, $200. Jacob F. Johnson, et ux., to John Herboldt, 10 acres, t 7 S, r 2 W, $600. John A. Ellingson, unmarried, to Nels A. Lee, et ux., 5.01 acres, t 7 S, r 1 W, $650. A. O. Dohl and Bertha Dohl to Nels A. Lee. et ux., 5 acres of Leander