22157. Commercial State Bank (Chehalis, WA)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
July 13, 1896
Location
Chehalis, Washington (46.662, -122.964)

Metadata

Model
gpt-5-mini
Short Digest
cba42943

Response Measures

None

Description

The Commercial State Bank of Chehalis failed to open its doors in mid-July 1896 and a receiver (O. Gingrich / C. O. Gingrich) was appointed. The suspension was precipitated by the failure/assignment of the principal stockholder N. B. Holbrook (an external/owner insolvency), and the bank went into receivership and did not resume normal business. Dates in articles range around July 13–18, 1896. No run on the bank is described in the sources.

Events (2)
1. July 13, 1896 Receivership
Newspaper Excerpt
O. Gingrich posted a notice to the effect that he had been appointed receiver for the bank and was in charge. C. O. Gingrich has been appointed receiver of the bank.
Source
newspapers
2. July 13, 1896 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Failed to open following the financial failure/assignment of principal stockholder N. B. Holbrook, whose inability to honor demands forced directors to suspend operations.
Newspaper Excerpt
The Commercial State bank of this place failed to open its doors this morning. At the opening hour O. Gingrich posted a notice to the effect that he had been appointed receiver for the bank and was in charge.
Source
newspapers

Newspaper Articles (7)
1. July 14, 1896 The Seattle Post-Intelligencer Seattle, WA
Article from The Seattle Post-Intelligencer, July 14, 1896

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Article Text

CRASH AT CHEHALIS. Commercial State Bank Fails to Open Its Doors. DUE TO AN EASTERN FAILURE, A Receiver Appointed for the Doernbecher Furniture Co. Whose Stockholders Are Embarrassed. Chehalls, July 18.-Special.-The Commercial State bank of this place failed to open its doors this morning. At the opening hour O. Gingrich posted a notice to the effect that he had been appointed receiver for the bank and was in charge. Following the suspension of the bank came the announcement that N. B. Holbrook had applied to the United States court at Tacoma for the =ppointment of & receiver for the Doernbecher Furniture Company of this place. M. L. Holbrook, president of the bank, later in the day assigned all of his property to John D. Rice for the benefit of his creditors. These failures were the result of the failure of N. B. Holbrook, of Marengo, Iowa, the principal stockholder in the bank and furniture factory. Yesterday morning M. L. Holbrook receiver a dispatch from him stating that he was unable to honor demands upon him for funds, and would be compelled to make an assignment this morning. President Holbrook at once called a meeting of the directors of the bank, and, although there were several thousand dollars on hand in the vaults, It was decided that the best plan was not to open this morning, as the Marengo failure and the maturing obligations that could not be met would compel the bank to suspend within a few days. The assets of the bank are not yet known. Its liabilities to depositors outside of borrowed money are about $40,000. The total liabilities are in the neighborhood of $70,000. As the bank's business has been well managed, It is believed there is no doubt that It will pay up. Mr. Holbrook states that he is confident that it will pay every dollar to depositors without an assessment on the stockholders. A part of the bank's liabilities is the banking house, built within the last three years at a cost of about $20,000. The bank also holds several thousand dollars of the furniture company's paper. The Commercial State bank was organized in June, 1891, to succeed Bailey & Swain, bankers. It was capitalized at $25,000. In 1893 the paid in capital was increased to $50,000. The officers are: M. L. Holbrook, president; William West, vice president: W. S. Berdan, cashier; directors, John T. Newland, N. B. Holbrook, C. W. Maynard, C. W. Long and William West. Few of the deposits are large. N. B. Holbrook had on deposit $5,000, the Fort estate $5,000, the assignee of the Blake bankrupt stock $5,000, the city $3,000, the county $2,000. The other deposits are of smaller sums, and belonged to persons here and in Winlock principally. The affairs of the furniture company are in good shape, and It is not believed that this company will be more than temporarily embarrassed. The plant is operating today as usual, and inasmuch as the business is making money there is every reason to believe that arrangements with the creditors can be made without trouble. The assets of the company are over $110,000, its liabilities about $60,000. Nineteen thousand dollars of the assets is in cash, representing the insurance on the stock which was burned at San Franclseo last Saturday. Other assets consist of $10,000 of book accounts, over $22,000 worth of finished and unfinished stock at the factory, $4,000 worth of stock at Portland, and $15,000 worth of lumber in the yards. Most of these can easily be converted into cash in a short time, and it is considered safe to say that the factory will not shut down. The furniture company is capitalized at $50,000. It was organized and the plant started in 1893. The principal stockholders are F. S. Doernbecher, N. B. Holbrook, M. L. Holbrook and J. S. Grelg. It has been a money-making venture from the first, although the profits have all gone to enlarge and improve the plant. In the beginning It employed twenty men. Now It employs 110 here, beside those to whom It gives employment in the lumber camps and mills that cut for it. Its capacity is over $10,000 worth of finished stuff per month, and it has been working on full time. Last week alone orders for more than $10,000 worth of goods came in. The company has branches in San Francisco, Portland and Honolulu. Judge Hanford at Tacoma this afternoon appointed William Urquhart, of this place, receiver for the furniture company, with power to operate the plant. President Holbrook, although completely upset by the developments of the last two days, takes a very hopeful view of the situation. He says he is wholly ignorant of the condition of his father's financial Waire but unless they are in worse shand

2. July 16, 1896 Aberdeen Herald Aberdeen, WA
Article from Aberdeen Herald, July 16, 1896

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Article Text

NEWS OF THE STATE. The state treasurer has called general fund warrants Nos. 11,811 to 12, 230, inclusive. The call matures July 23. A human foot, apparently that of a woman, in a good state of preservation, was found on the tide flats at Whateom, Monday. The Kittitas Valley Bank, at Ellensburg, closed last Friday. It had deposits of $15,000 and the directors declare they will pay every dollar. H. G. Stemmel, of Spokane, last week sold 1,333 shares of stock of the Le Roi Mining Company. to J. B. McLaren, of Ottawa, Canada, for $66,665. The Blaine customs department entered 11 and cleared 12 vessels during June, the value of domestic exports being $16,268, and foreign exports $6,744. The seventh annual meeting of the Washington State Pharmaceutical Association will be held in Tacoma, Monday, Tuesday and Wednesday, July 20, 21, and 22. Leading Republicans of the state favor an early convention for the nomination of a state ticket, in order that the people may have time to fully consider the important issues and form an estimate of the candidates for various state offices. The Commercial State bank of Chehalis failed to open its doors Monday morning. At the opening hour O. Gingrich posted a notice to the effect that he had been appointed receiver for the bank and was in charge. Following the suspension of the bank came the announcement that N. B. Holbrook had applie d to the United States court at Tacoma for the appointment of a receiver for the Doernbecher Furniture Company of that place. The liabilities are $70,000 and it is thought the assets will be sufficient to pay every dollar.

3. July 17, 1896 Washington Standard Olympia, WA
Article from Washington Standard, July 17, 1896

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Article Text

THE Commercial State Bank of Chehalis has closed its doors, and this has resulted in the Doernbecher Furniture Co. passing into the hands of a receiver. The liabilities of the bank are $60,000, with liabilities exceeding that amount. The liabilities of the furniture company are $60,000, with assets that amount to twice that sum. The failures were precipitated by an assignment made by N. B. Holbrook, of Marengo, Ia., who was largely interested in those enterprises. C. O. Gin. grich has been appointed receiver of the bank, and William Urquhart receiver of the furniture company.

4. July 18, 1896 Red Lodge Picket Red Lodge, MT
Article from Red Lodge Picket, July 18, 1896

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Article Text

BANK DID NOT OPEN FOR BUSINESS Assets Can Be Realized on With but Little Difficulty, Chehalis, Wash., July 13.--The Commercial State bank failed to open for business today. Owing to the failure of the bank, the Doernbecher Furniture Company applied to Judge Hanford for a receiver. The liabilities of the bank are estimated at $60,000, with the assets considerable more. The liabilities of the furniture company are $60,000, assets $120,000. The assets of the latter company are in such shape that they can be realized on with little difficulty. The deposits in the bank are $30,000, and while the depositors are certain of getting their money, it will be a slow process. C. O. Gingrich has been appointed receiver of the bank. The failures were caused by the failure of N. B. Holbrook of Marengo, Iowa, the principal stockholder. The furniture company employed 100 men and had a payroll of $2500 a month. William Urquhart has been appointed temporary receiver, and will conduct the business in the interest of the stockholders.

5. July 24, 1896 The Seattle Post-Intelligencer Seattle, WA
Article from The Seattle Post-Intelligencer, July 24, 1896

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Article Text

The Chehalls Business Failures. Chehalis, July 23.-Special-Recelver C. O. Gingrich, of the Commercial State bank, has completed a statement of the bank's condition. from which it appears that the concern's assets foot up a little over $131,000. Its liabilities to depositors are in round numbers $72,000. Other liabilities amount to $17,000. The bank's bills receivable amount to over $91,000; its real estate, furniture and fixtures to $32,000. The assets on their face exceed the liabillties by nearly $44,000. Receiver Gingrich is unable to state just what the assets are worth. He says, however, that he is satisfied they will be sufficient to pay all creditors in full, though some may be slow. He says the furniture company owes the bank about $33,000. This he considers good. but it is said the relations of company and bank have been very much complicated. and there is liable to be a good deal of litigation before these claims will be paid. Receiver Urquhart. of the furniture company, is preparing to make his report on the company's condition. He finds total assets of over $134,000; liabilities of $83,700. The value of finished stock here is placed at $22,600; of unfinished stock, $31,000; lumber, $16,000; plant. $16,000: machinery, $20.000. The factory is now running. and Mr. Urquhart thinks it will be kept in operation. He says It has been a remarkably profitable business. Notwithstanding this, the factory seems to have been the cause of the bank's destruction. It was too big a concern. and too much money was being spent in improvements and for stock. This is apparent when it is considered that the value of the plant has increased over $110,000 in less than three years, while its stockholders have paid in nothing and Its profits have not been nearly one-half that sum. President Holbrook has gone to Marengo. Ia. Before leaving he stated he expected to be able to make arrangements by which the bank would Day 59 cents on the dollar within three months.

6. February 24, 1897 The Seattle Post-Intelligencer Seattle, WA
Article from The Seattle Post-Intelligencer, February 24, 1897

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Lewis County Grand Jury. CHEHALIS, Feb. 23. - Special. - The grand jury finished its work late Saturday evening and filed a report, part of which Judge Elliott read at the opening of court this morning. A number of true bills were found in criminal cases of no particular importance. The action in regard to the failure of the Hense bank, of Centralia, is not known. No indictments were found in the matter of the Commercial State bank, of Chehalis, but certain suggestions were made by the grand jury, which the judge deemed best not to make public, but referred to the receiver and his attorneys. The grand jury reported the poor farm in bad condition. The jury found county affairs in good shape and complimented the officers upon the care and economy with which they have conducted their offices.

7. February 20, 1898 The Seattle Post-Intelligencer Seattle, WA
Article from The Seattle Post-Intelligencer, February 20, 1898

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# NORTHWESTERN NEWS NOTES Fish Commissioner Little says he will prosecute all mill owners in the Grays harbor district who persist in throwing sawdust and mill refuse into the streams. O. W. Maynard, one of the stockholders, has submitted a proposition to the superior court to pay $12,000 cash for the remaining assets of the Commercial State bank, of Chehalis, which went into a receiver's hands. In the superior court at Chehalis W. B. Allen and Frederick W. Long were appointed administrators of the estate of the late J. H. Long. This is in conformity with the wish of Mr. Long. There is no will. John Kendricks, a boy employed in the Capital mill, at Ainslee, had his clothing caught in a shaft and made several rapid revolutions around it before he was released by his clothing giving way. He was not seriously hurt. The high water in the Touchet, in Columbia county, has washed out some of the piling under the Star bridge, two miles above Dayton, and the structure has been declared unsafe for teams and vehicles by the road supervisor. A. Johnson, of Cathlamet, says that the up-river fishermen are putting up very little new gear, much less than last season, and that the local cannery at Cathlamet is making no preparations for the opening of the season. A thief entered the room of Henry Fay, in the Reed-Dobson building, at Chehalis, Wednesday evening, and carried away about everything it contained that was not nailed fast. The most valuable articles taken were a suit of clothes, a mackintosh and a watch chain. The will of the late Capt. William E. Hall, the superintendent of the Le Roi mine, who met his death by falling 600 feet down a shaft, was filed for record in the probate court in Spokane Wednesday. The will was made in 1892, and bequeaths the bulk of his estate to his wife. While firing on an anvil last Saturday, in honor of the appropriation for Yaquina harbor, Stoney Wells, of Toledo, got too close, and his face and hands were badly powder-burned. Some of the grains of powder entered the ball of his right eye, inflicting a very painful wound. Fred Hill, while riding a cayuse to Pendleton, Or., the other day, struck the ford near the residence of B. C. Kidder. The river was up, and the horse became unmanageable, so that the horse and rider were swept down the river. Mr. Hill managed to throw himself from the animal and reached shore safely; but the cayuse and $15 saddle went to the bottom. Two new evaporators for preparing vegetables and fruit for the Alaska trade are being put in in Douglas county, one at Orchard Park, on the Columbia, by A. L. Coleman, John Kellogg and E. Morrill, and the second in Waterville, by Maltbie & Byers. The first machine began operations this week. Their capacity can be increased from one ton each to several tons, if the market justifies. Prosecuting Attorney Fitzpatrick, of Stevens county, has presented a statement to Judge Neal, showing that Jack Martin, who was shot by John Hennessy, at Eureka camp, on the Colville reservation, last October, had left the state and could not be found; that without the testimony of Martin a conviction of Hennessy for the shooting could not be had, and asked that the case against Hennessy be dismissed, and an order was so entered. Peter Gustavson was badly hurt at the light plant at Chehalis Sunday morning about 5 o'clock. Ole Ring, who was on duty, had been talking with him in the engine room, and went to fix the fires. A little later he heard a noise as of something thrown violently on the floor, and, going back to the engine room, he found Mr. Gustavson lying senseless, bleeding from wounds in his head, and with one of his hands considerably hurt. He had in some way got tangled up in the machinery. He was laid up for a few days, but is now able to be around, not much worse for the encounter. In passing upon the proceedings before him to recover money which "Shorty" Brown, a Colfax attorney, had collected for a client and failed to turn over, Judge McDonald, of Colfax, said: "I want to have this matter thoroughly understood right here and now. Several men came to me and made complaint that Brown was on a protracted spree, that they had paid him money to attend to legal business for them, that Brown was drunk, spending their money and neglecting their interests. Among these men was Mr. Miller, the complaining witness in this case. I determined to put a stop to this work, and I want to say right here and now that I will not permit it to occur again, and if Mr. Brown or any other attorney goes on a protracted spree I will disbar him. I will pursue this statute at all times in the future, and severely punish all attorneys who go on protracted sprees." TICKETS for Skagway and Dyea, first class, $50; second class, $25; on a first-class steamer, leaving here Monday, Feb. 21, are secured.