18432. Williams & England Banking Co. (Salem, OR)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
November 14, 1895
Location
Salem, Oregon (44.943, -123.035)

Metadata

Model
gpt-5-mini
Short Digest
75fd2bad

Response Measures

Full suspension

Other: Receiver later paid dividends; legal actions and allegations of insider misuse of funds described in subsequent articles.

Description

Newspaper accounts report heavy demands/unusual withdrawals (crowds of depositors) and a notice that the bank would not open (Nov 14, 1895). A receiver was petitioned and later appointed; the bank remained in receivership and assets were being administered. Initial trigger mentioned 'stringency of the money market and various rumors' causing withdrawals; later court filings allege mismanagement/insolvency. Thus a depositor run led to suspension and permanent closure/receivership.

Events (3)
1. November 14, 1895 Receivership
Newspaper Excerpt
RECEIVER ASKED FOR... the plaintiff asks the appointment of a disinterested person as receiver. ... plaintiffs sought receiver; later articles describe receiver McNary paying dividends and pursuing litigation against stockholders/officers.
Source
newspapers
2. November 14, 1895 Run
Cause
Rumor Or Misinformation
Cause Details
Article cites 'stringency of the money market and various rumors affecting the credit of the bank' causing unusual and heavy demands by depositors.
Measures
Bank closed for the present; notice posted on door that bank would not open and would treat creditors equitably.
Newspaper Excerpt
For two weeks it has been known that the Williams & England Banking Co. was being crowded by creditors... 'Having reason to expect unusual demands from depositors and in order to treat all creditors fairly and equitably this bank is closed for the present.'
Source
newspapers
3. November 14, 1895 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Following the run/closure, petition for receiver cites large deposits, alleged mismatches in assets and liabilities and later reporting (court filings) alleges wrongful withdrawals by officers and insolvency.
Newspaper Excerpt
SALEM BANK CLOSED. Williams & England Banking Company... At noon today Attorney Slater ... presented a petition asking that the cashier of the bank, Hugh P. McNary, be appointed receiver to take charge of the affairs of the bank and wind them up.
Source
newspapers

Newspaper Articles (11)
1. November 14, 1895 Capital Journal Salem, OR
Article from Capital Journal, November 14, 1895

Click image to open full size in new tab

Article Text

SALEM BANK CLOSED. Williams a. England Banking Company. A RECEIVER IS NOW ASKED FOR. Doors Closed and a Notice to the Creditors Issued. For two weeks it has been known that the Williams & England Banking Co. was being crowded by creditors. Last night a consultation was held by the directors, but no action was taken as only three were present. But they did not decide to close the bank. This forenoon, however, it was decided to not open the bank and following notice was put on the door. THE BANK CLOSED. "Having reason to expect unusual demands from depositors and in order to treat all creditors fairly and equitably this bank is closed for the present. "It is my opinion that all depositors will be paid ID full." H. P. MCNARY. Cashier. There was soon gathered a crowd of citizens and some depositors who had only yesterday put money in the bank. The comment was anything but avorable. A CITY DEPOSITORY. The Williams & England banking Co. has been organized about five years and has always been a city depository, and has bad county, school and state funds as well. As near as could be learned this morning City Treasurer Swafford has about $4,100 on deposit of city money. His bondsmen are Geo. Williams and Jos. A. Baker, sureties to the amount of $8,000, approved by Mayor Gateb February 16, 1894. The money was being held to pay interest coupons now due. Mayor Gatch and Recorder Edes think the city is amply protected, but that it will be fully protected as Mr. Swafford's bondsmen are responsible not the bank. The bank was also cashier and held the funds of the State Insurance Co.,and its officers were also officers of that institution. OTHER PUBLIC MONEYS, Up to noon it could not be learned that there were other public funds in the bank. County Treasurer Minto found $8.35 of county money there when he took the office but withdrew It and has had none there since County Clerk Ehlen had divorce fees and funds there until two weeks ago when he withdrew them. Sheriff Knight is at Portland, ,but nis deputies say none of the funds of that office are there. RECEIVER ASKED FOR. At noon today Attorney Slater of the State Insurance company appeared before Judge Hewitt of the circuit court in session and presented a petition asking that the cashier of the bank, Hugh P. McNary, be appointed receiver to take charge of the affairs of the bank and wind them up. The complaint petition In the case is entitled J. A. Baker VS. Williams and England Banking company, a corporno ation, and asks appointment of a rer ceiver reciting the following facts: 1st. That the capital stock of the b concern is $200,000, of which there is b taken and paid $100,000; that Plaintiff I Baker owns 20 shares of the par value of $2,000. o E 2d. That the deposits agggregate e $120,000 and a large part are on open P account and certificates of deposit. " 3d. That the corporation has inb vested a large sum, consisting of it. 1 capital stock and a per centage of its ( deposits in securities, bills receivable. discounts, real estate, buildings and furniture, aggregating $275,000. 5th. That the stringency of the money market and various rumors to affecting the credit of the bank have q caused unusual and heavy demands a to be made by the depositors, etc.; and V the plaintiff asks the appointment of a re disinterested person as receiver. fo SOME OF THE STOCKHOLDERS. of Messrs. Emmett and Richard Williams, Judge Thayer and Frank C. Baker, of Portland; Geo. Williams, Hugh McNary, Jos. A. Baker, Finley Perrine and Dr. Richardson, of Salem, orincipal stockholders.

2. November 15, 1895 The Daily Morning Astorian Astoria, OR
Article from The Daily Morning Astorian, November 15, 1895

Click image to open full size in new tab

Article Text

STATE INSURANCE CO Closed Its Doors Yesterday in Salem. Was the Result of Failure of the Williams-England Banking Co. Special to the Astorian. Salem, Or., Nov. 14.-The Williams & Engaind Banking Co.'e bank closed its doors today. Deposits, $120,000; alsasts, $275,000. As a sequel to the bank failure the following announcement was posted on the door of the State Insurance office, at the closing hour this evening: "Owing to the closing of the Williams and England Company's bank, with which our funds are kept, and to the lack of available fundis to meet claims now becoming due, and in order to protect the interests of policy holders, the State Insurance Company will suspend business and ask the appointment of receivers. Edmund C. Glittner, Manager." The company filed an application in the circuit court this afternoon for the appointment of a receiver.

3. November 22, 1895 The Athena Press Athena, OR
Article from The Athena Press, November 22, 1895

Click image to open full size in new tab

Article Text

INSURANCE COMPANY FAIL. Collapse of the State, of Salem-A Receiver Appointed. As a sequel to the failure of the Williams & England Banking Co., of Salem, early last week, the State Insurance Company collapsed on Wednesday. The following statement of the company's embarassment was given out by Manager Giltner: "Owing to the closing of the Williams & England Bank Company's bank, in which our funds are kept, and to lack of available funds to meet the claims now becoming due, and in order to protect the interest of policy-holders, the State Insurance Company will suspend business and ask for the appointment of a receiver." The insurance company filed an application in the circuit court for the appointment of a receiver, and E. 3. Giltner, the secretary and manager, was appointed. The liabilities of the State Insurance Co. aside from the capital stock amount to $175,000; assets, 374,000. Confidence is complete here that the creditors will be paid in full in both cases. The State Insurance Company had a fair business in this section, and among its policy-holders were many farmers. The Salem Statesman intimates that the affairs of the company are to be wound up speedily. Senator McBride has been retained as receiver's counsel. The Statesman apparently has no hope of a future for the concern, and darkly hints in these words: "The main troub le with the Salem home company, 'the State,' is that it has for some years been sending the 'good' Willamette valley and Western Oregon money after the bad Eastern Washington, Idaho and sound money. It has been doing this at the rate of $30,000 to $40,000 a year. This has made up the difference between success and failure. There were other elements that helped to make up this difference. These it would not be gracious to mention here."

4. December 19, 1895 Capital Journal Salem, OR
Article from Capital Journal, December 19, 1895

Click image to open full size in new tab

Article Text

SEVERE ON WILLIAMS Answer of Hugh P. MeNary, Receiver Williams & England Banking Co. In soswer to petition of R. Williams in the case of the failed banking company, Hugh P. McNary has filed # document that is a severe arraignment of Major (leorge Williams, of Salem. He recites that there in in the bank vault a certificate of deposit in the name of R. Williams for $23,000, but denies that the bank ever obtained such a sum of money of R. Williams, or of F. C. Baker, and denies that the bank ever agreed to pay Baker 2 per cent In advance and 6 per cent per annum for 15 months on said loan, and denies that such certificate was ever issued to R. Williams, Geo. Williams, or Williams & England. Also denies that receiver has any knowledge that R. Williams paid to Baker $24,380 or any other suni out of bis personal funds and that Williams even became equitable holder of said note against Baker. Denies that he wrongfully interfered to prevent England from endorsing said certificate, or that he wrongfully refused to deliver said alleged certificate to R. Williams, or that R. Williams owns or possesses any debt against said banking company. McNary, as receiver, further alleges as separate answer, jdefense and counter claim to said petition of R. Williams: 1. That Geo. Williams is president, because he and his brother R. Williams owned controlling stock. 2. That Geo. Williams, as president, wrongfully executed his own personal unsecured promisory notes to said corporation and wrongfully drew money by such notes, overdrafts and checks up to June 3, 1893, of over $45,000. 3. Qn June 3, 1893, Geo. Williams borrowed of Frank C. Baker on bis personal note, $20,000, due in 12 months at 6 per cent. Oa the same day he bought a draft of $4000 with some of this money, which he endorsed to R. Williams. He then placed the $16,000 in the bank on 8 certificate of deposit to himself instead of paying what he owed the bank, said certificate being psyable in 12 months, at 6 per cent. He borrowed $3000 of Baker August 1, 1893, depositing same as as above. 4 and 5. August 14th Baker was unwilling to lend Williams more and demanded security, and Geo. Williams gave his note to him for $23,000 with England and R. Williams as co-makers. Geo. Williams then drew of the bank on his own unsecured note $4,000, cancelled his certificates of deposit of $16,000 and $3,000, and wrongfully executed to R. Williams a certificate of deposit of $23,000, payable in fifteen months. 6 and 7. That Geo. Williams as president then took from the bank money to pay interest on notes he owed Baker, and in all drew out of the bank on his own unsecured indebted ness to the amount of $65,000 in all. 8. That on October 1, 1895, Geo. Williams as president and R. Williams his brother, knowing that George was owing the bank $65,000, connived together for the purpose of cheating the other creditors and stock. holders, deeded to R. Williams all his real estate in Multnomah county to the amount of $44,000 for which R. Williams has never paid a cent, except that he agreed to pay off the note of $23,000 to F. C. Baker. There are further details set out in full in this answer to the same effect.

5. July 8, 1896 Daily Capital Journal Salem, OR
Article from Daily Capital Journal, July 8, 1896

Click image to open full size in new tab

Article Text

WILLIAMS & ENGLAND BANK. Receiver Paying Dividend of 38 Percent. Receiver McNary began this morning paying 38 per cent of claims allowed by the court in the case of the Williams & England Banking Co., insolvent. The claim of Richard Williams of $24,380 was not allowed, but two of his items of $319.65 were allowed. The total number of claims is 185, amount $100,307,76. Claimants are paid in checks on the First National Bank of Salem. The largest claims are as follows: Ladd & Bush, $10,000, Edward C. Giltner, agent, $25,000; F. H. Bryan, $4000; Mrs. M. C. Penter, $6,200; J. S: White, guardian, $2,380; Cora L. Pres. cott, $2,550; T.L. Davidson, $10,246.67; Theo Nolf, $600; Jas. R. Davis, W.M., $600; Anna Briggs, (D. C. Sherman, attorney), $950; A. B. Buren, $717.40; W. H. Odell, $5,047.27; J. B Stump, $250,971; State Insurance Co., $617.79; Phil Metschan, $789.73; Cal Jones, $887.05; Geo. Williams, guardian, $249.46; H. P. McNary, trustee, $432.09; McCrow & Steusloff, $714.09; R. M Wade & Co., $1,619.86; J. L. Riggs, $684.14; Wm. Waldo, $545.21; F. C. Perrine, $269.33; Phil Metschan, state treasurer' $8,013.50; E. J. Swafford, city treasurer, $7,349.33. The other claims are sums ranging from a few dollars up to several hundred, deposits of cash on current account and certificates of deposit. Interest is allowed on these sums up to November 14, 1895, the date of closing. There will be no dividend declared in the affairs of the State Insurance Co. until its affairs are all settled up' It may be a year or more. The stockholders of the bank never paid but one-half of the par value of the stock, but many of them are now insolvent. Under the Oregon law the officers and stockholders are liable only for the orginial stock subscribed. The ugliest feature of the failure is still commented upon on the street -the transfer by George Williams of property at Portland worth about $100,000 to his brother, Richard Williams, a sharp lawyer of that city. Receiver McNary still has hopes that he can pay depositors in full.

6. November 3, 1896 Daily Capital Journal Salem, OR
Article from Daily Capital Journal, November 3, 1896

Click image to open full size in new tab

Article Text

J H Albert vs City of Salem and A C Dilley; injunction. W J Burns, trustee, vs Turner Flouring Mill Co et al; foreclosure. W J Burns. trustee, vs J W Cochran et al; foreclosure. Geo Weller vs Julia A Johns et al; foreclosure. N Ellen Glover vs Jacob Duester et al; foreclosure. W B Peacock vs R Reid et al; foreclosure. W R Swink vs John Leely et al: foreclosure. Sarah W Stinson, guardian, vs C. B Moore, adminstrator; appeal from county court. J W Parrish ys Frank Parrish et al; foreclosure. Ione Williams vs Boyd W Williams; divorce. Breyman Bros vs Henry Warren et all; foreclosure. John Hoefer et al vs SW Jones et al; foreclosure. John Hoefer et al vs Mary Alpin et al; foreclosure. Jacob Bezemer ys J A Van Eaton; foreclosure. R L Sabin vs E Nott et al; motion for present sheriff to make deed. Samuel Heitschu et al vs W E McAfee; motion / for present sheriff to make deed. Peter Zelinski vs Wm Miles et al: motion for present sheriff to make deed. Henry Ollschlager vs Peter Fox et al; motion for present sheriff to make deed. H P McNary, receiver of Williams & England Banking Co., vs James McCourt et al; foreclosure. Thos G Green et al vs H R Kincaid, secretary of state, injunction.

7. November 11, 1896 Daily Capital Journal Salem, OR
Article from Daily Capital Journal, November 11, 1896

Click image to open full size in new tab

Article Text

CIRCUIT COURT. Business Transacted in Other Departments of Court House. Margaret M. Small has instituted an action against B. A. Jacobs et al,, to recover possession of 320 acres of land which she claims is wrongfully withheld from her and for damages to the amount of $500. The last will and testament of Eliza O'Connor, who died on June 24, 1896, was admitted to probate by County Judge Terrell yesterday and James K. Hurley was appointed the executor of the estate which consists of an undivided interest in the estate of her deceased sister, Catherine O'Conor Darst, and is of the probable value of $1,000. Mr. Hurley has also been appointed administrator of the estate of Ellen O'Connor Pembroke, who died at Keokuk, la., on April 9, 1896, leaving an estate similar to that of the decedent O'Connor. CIRCUIT COURT. The following docket entires were made by Judge Hewitt Tuesday. E. (P. McCornack, trustee, vs. the Salem Consolidated Street Railway Co., F. R. Anson, *receiver: demurrer sustained and petition of Hintz & Co. dismissed. Pinkham & Sandford, insolyent, W. F. Boothby, assignee, assignment; motion to require that taxes for 1895 be paid is withdrawn and the final account.is approved and allowed and the assignee discharged. J. H. Albert, guardian, vs. H. A. Thomas et al., partition; defendant to answer by tomorrow. J. A. Baker vs. Williams & England Banking Co., receivership; demurrer to answer to tax petition sustained and leave granted io amend. M. E. Adams, insolvent, J. W. McKinney, assignee, insolvent; ordered that taxes for 1894 and 1895 be paid out of the first moneys coming into 1 the-hands of the assignee and the same continued. a Sarah Amend VS.=I. K. Amend, divorce; decree granted. ] Sarah W. Stinson, guardian, vs. C. § B. Moores, appeal from county court; on motion of appellant the appeal is a dismissed. f Ella G. Fishburn vs. Joseph Fishburn, divorce granted and the care and custody of the minor children a awarded to the plaintiff. In the matter of the assignment of O.J. Goffin; Henry Gouley appointed assignee and cause continued. Following entries were made by Judge Hewitt this morning: H. A. Salisbury, insolvent, vs. A. N. Bush, assignee, assignment; cause continued. 9 E. P. McCornack, trustee, vs. Salem Consolidated Street Railway Co., F. R. Anson, receiver, receivership: ordered that property be sold and cause continued. 17 J. M. Brown vs. W. E. Loughmiller, equity; demurrer to further and separate answer overruled; the plaintiff = to .reply in ten days. In matter of the case of S. B. Parrish et al., vs. Mattie A. Parrish suit 1 todeclare trust: plaintiffs today filed a reply to the defendants first further and separate answer. DEMURRER OVERRULED. The demurrer to the petition to dispose of certain property in the Jones estate was overruled by Judge G. P. Terrell this morning. I.O.O. F.-A. J. Goodman, F. P.

8. December 12, 1896 Daily Capital Journal Salem, OR
Article from Daily Capital Journal, December 12, 1896

Click image to open full size in new tab

Article Text

IN THE COURTS. CIRCUIT COURT-HEWITT, J. Marx & Jorgenson, of Portland, dealers in wines and whiskies, have instituted a suit against L. H.Fortin to recover the sum of $604.53 with interest on the sum of $115.95 since the 18th of May, 1894, with 10 per cent. interest, together with interest on $249.55 at 8 per cent. since Nov. 15, 1894, together with interest on $40.75 at 10 per cent. since September 26, 1896, together with interest on $114.65 at 8 per cent. since April 20, 1895, together with interest on $83.63 at 8 per cent. since October, 1895, and with $50 attorney's fee. These sums are claimed as due on promissory notes and for goods purchased. In the matter of H. P. McNary, receiver of the Williams & England Banking Co., hearing of creditors who demand a new receiver came up, W. T. Slater appearing for receiver and W. H. Holmes for petitioners. Counsel Slater presented arguments for a demurrer to petition. Overruled. Mr. Slater will prepare an answer. In receivership of State Insurance Co., Dr. W. A. Cusick offers $10,000 for Insurance building property. Receiver asks $11,000. In matter of assigment of Leo. Willis, the order of continuance was set aside yesterday and the petition to sell certain premises of the estate at private sale was granted. H. P. McNary receiver vs. N. H. Burley, foreclosure;default as to N. H. and Carrie I. Burley and decree of foreclosure. Alexander Tercotte vs. Zendalda Du Rente et al., and C. Marsh vs. J. E. Eldriedge et al., motion for orders on the sheriff to make deeds were flled. The taking of testimony in the injunction suit if J. H. Albert vs. the city of Salem was concluded last evening.

9. March 11, 1897 Daily Capital Journal Salem, OR
Article from Daily Capital Journal, March 11, 1897

Click image to open full size in new tab

Article Text

CIRCUIT COURT. The following entries were made on Judge H. H. Hewitt's docket for department No. 2, Marion county cir cuit court at Wednesday afternoon's session: H. S. Jordon T8. State Insurance Co., receivership; all Oregon and Idaho claims allowed except that of B. E. French upon which there is allowed 882.37. The claim of Mrs. G. M. Beeler & Co. Is disallowed. All claims of W. W. Pierson and Geo. M. Wood are disallowed. Cause continued. Santlam Lumbering Co., plaintiff, vs. G. N. Hensley, defendant: injunetion; decree on findings. The plain. Lift is the owner of the right-of-way and the defendant is perpetually enjoined from interfering with or obstructing it J. A. Baker ys. Williams & England Banking Co., receivership: findings filed and order as prayed for in the petition. Setting order aside and directing the receiver to take such proceedings as are necessary to cancel the release executed on October 19, 1896. E. W. Copps vs. A. E. La Roeque, suit on bond; decree rendered on findings. Wednesday afternoon, having made the above entries, court adjourned until Tuesday, March 16, 1897.

10. December 2, 1897 Daily Capital Journal Salem, OR
Article from Daily Capital Journal, December 2, 1897

Click image to open full size in new tab

Article Text

JOURNAL "X-RAYS." Morning Statesman: In response to a Statesman reporter's inquiry regarding the object of the union in putting forth a ticket, one of the prime movers said: "We think that the city ought to be run in the interest of reforio, good government and tower taxation, and we are most emphatically in favor of sonce movement being made to enforce the collection of that part of the city's money which was on deposit in the Williams & England Banking Co's bank at the time it failed. There are many ways to economize in the government of the city and something in that line should he commenced very soon." There are a few men at work on the streets. But it is like Mrs. Partington sweeping back the ocean with a broom. One hundred men could be employed. Of course, it will be a downright shame to elect a "Pop" city treasurer who would make those fellows dig up the city's cash and save interest on $5000 a year. They do say that when Rigdon was in the council under Mayor Gatch he gave Salem the best streets she ever had, but then, he didn't run the city "in the hole." The negro minstrel joke the other night, that McKinley had gone blind from the smoke and cinders of the factories he had started up, was not so bad when we consider those fellows come from the South, where cotton brings less than it ever did. Our present street commissioner gets $50 a month. He's trying to keep up all the streets out of the poll and road tax. He's great on economy but not much on streets. Piles of old barrels, lumber and loads of gravel lie about for work and cause Chairman Parkhurst to inwardly say d-n. Heaps of semi-fluid mud are scraped up but are not hauled off. They are spread out again. Such is not economy. The streets should be kept clean and should be kept up better. We don't know as that's an issue in city politics. But whoever constitutes the next city council, they should infuse in their street commissioner a little more pride in the town. Wheat is three cents higher in Salem than in Albany. Who can say Salem market is not as good as othe valley points?

11. March 4, 1898 Daily Capital Journal Salem, OR
Article from Daily Capital Journal, March 4, 1898

Click image to open full size in new tab

Article Text

DECREE RENDERED.-Judge - H. H. Hewitt today rendered a decree in the suit to quiet title of H. P.McNary as receiver of the Williams & England Banking Co. VS A. Bush. Judge Hewitt finds in favor of Plaintiff MeNary. The suit was instituted November 17, 1897, W. T. Slater attorney for plaintiff The suit involved the title to cer tain city property including that now occupied by the Salem postoffice.